A Randomized, Double-Blind, Parallel Group, Multi-Center Study to Assess the Efficacy and Safety of PT009 Compared to PT005 on COPD Exacerbations Over a 52-Week Treatment Period in Subjects With Moderate to Very Severe COPD
Phase: PHASE3
Conditions: Chronic Obstructive Pulmonary Disorder
Sponsor: Pearl Therapeutics, Inc.



5HYLVHG&OLQLFDO6WXG\3URWRFRO
6WXG\&RGH
37
1&7
1&7
9HUVLRQ
9HU$PHQGPHQW
'DWH
-DQXDU\











$5DQGRPL]HG'RXEOH%OLQG3DUDOOHO*URXS0XOWL&HQWHU6WXG\WR
$VVHVVWKH(IILFDF\DQG6DIHW\RI37FRPSDUHGWR37LQ
6XEMHFWV:LWK0RGHUDWHWR9HU\6HYHUH&23'



7KLVVXEPLVVLRQGRFXPHQWFRQWDLQVWUDGHVHFUHWVDQGFRQILGHQWLDOFRPPHUFLDOLQIRUPDWLRQGLVFORVXUHRIZKLFK
LVSURKLELWHGZLWKRXWSURYLGLQJDGYDQFHQRWLFHWR$VWUD=HQHFDDQGRSSRUWXQLW\WRREMHFW
7KHIROORZLQJ$PHQGPHQWVDUHLQFOXGHGLQWKLVUHYLVHGSURWRFRO

$PHQGPHQW1R
'DWH RI $PHQGPHQW
9HUVLRQ
)HEUXDU\
9HUVLRQ$PHQGPHQW
-XO\
9HUVLRQ$PHQGPHQW
'HFHPEHU
9HUVLRQ$PHQGPHQW
-DQXDU\




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
&OLQLFDO7ULDO3URWRFRO37
6WXG\7LWOH
$5DQGRPL]HG'RXEOH%OLQG3DUDOOHO*URXS0XOWL&HQWHU6WXG\WR
$VVHVVWKH(IILFDF\DQG6DIHW\RI37FRPSDUHGWR37LQ
6XEMHFWV:LWK0RGHUDWHWR9HU\6HYHUH&23'
6WXG\1XPEHU
37
6WXG\3KDVH
,,,
3URGXFW1DPH
%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO37
%))0',
)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO37))0',
,1'1XPEHU

(XGUD&7
1XPEHU

,QGLFDWLRQ
&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH&23'
,QYHVWLJDWRUV
6SRQVRU
6SRQVRU
&RQWDFW


9HUVLRQ1XPEHU
'DWH
2ULJLQDO3URWRFRO
9HUVLRQ
)HEUXDU\
$PHQGHG3URWRFRO
9HUVLRQ
-XO\
$PHQGHG3URWRFRO
9HUVLRQ
'HFHPEHU
$PHQGHG3URWRFRO
9HUVLRQ
-DQXDU\

&RQILGHQWLDOLW\6WDWHPHQW
3URSHUW\RI3HDUO7KHUDSHXWLFV
7KLVGRFXPHQWLVFRQILGHQWLDODQGPD\QRWEHXVHGGLYXOJHGSXEOLVKHGRURWKHUZLVH
GLVFORVHGZLWKRXWFRQVHQWRI3HDUO7KHUDSHXWLFV,QF

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
6800$5<2)&+$1*(672$0(1'('35272&2/37
9(56,21'$7(''(&(0%(5
7KHFXUUHQWDPHQGHGVWXG\SURWRFRO379HUVLRQLQFOXGHVWKHIROORZLQJ
HGLWV
6HFWLRQV'HVFULSWLRQRI&KDQJHV
5DWLRQDOH

6\QRSVLV6HFWLRQV
x
$PHQGPHQWFODULILHVWKDW³WLPHWRILUVWFOLQLFDOO\
LPSRUWDQWGHWHULRUDWLRQLQ&23'´LVDVHFRQGDU\
HQGSRLQWIRUWKHH[86DSSURDFKDQGDQ³RWKHU´
HQGSRLQWIRUWKH86DSSURDFK
x
'HILQLWLRQRIVXVWDLQHG&,'ZDVPRYHGWR
6HFWLRQ



x
3UHYLRXVYHUVLRQRIWKHSURWRFROPLVWDNHQO\
OLVWHG³WLPHWRILUVWFOLQLFDOO\LPSRUWDQW
GHWHULRUDWLRQLQ&23'´DVDVHFRQGDU\HQGSRLQW
LQWKH86DSSURDFK,WZDVPHDQWWREHD
VHFRQGDU\HQGSRLQWLQWKHH[86DSSURDFKRQO\


6HFWLRQVDQG
x
$PHQGPHQWUHQDPHV³(;$&75HVSLUDWRU\
6\PSWRPV(567RWDO6FRUH´WREH
³(YDOXDWLQJ5HVSLUDWRU\6\PSWRPVLQ&23'
(56&23'7RWDO6FRUH´


x
7KLVFKDQJHZDVPDGHWRUHIOHFWWKHFXUUHQW
QDPHRIWKHLQVWUXPHQW

6HFWLRQ
x
$PHQGPHQWUHPRYHVWHPSHUDWXUHIURPWKHOLVW
RIVDIHW\HQGSRLQWV


x
6XPPDULHVRIPHDQFKDQJHVLQWHPSHUDWXUHE\
WUHDWPHQWDUHQRWH[SHFWHGWREHLQIRUPDWLYHRI
SDWLHQWVDIHW\$EQRUPDOWHPSHUDWXUHFKDQJHV
DWWKHSDWLHQWOHYHOZLOOEHFDSWXUHGDVDGYHUVH
HYHQWVDQGVXPPDUL]HG

6HFWLRQ
0RGLILFDWLRQVWRWKHOLVWRI+&58HQGSRLQWV
x
1HZWH[WFODULILHVWKDW³WKHQXPEHURIGD\V
PLVVHGIURPZRUN´SHUWDLQVWRWKHQXPEHURI
GD\VPLVVHGGXHWR&23'
x
1HZWH[WIRUVRPH+&58HQGSRLQWVLQGLFDWHV
WKDWDFDWHJRU\IRU³DQ\KHDOWKFDUHSURYLGHU´
ZLOOEHFUHDWHGLQDGGLWLRQWRH[LVWLQJFDWHJRULHV
x
1HZWH[WLQGLFDWHVWKDWWLPHVSHQWRUQRWVSHQW
LQHLWKHUWKH,&8RU&&8ZLOOEHVXPPDUL]HG
IRUVRPH+&58HQGSRLQWV



x
7KHOLVWRI+&58HQGSRLQWVZDVXSGDWHGWR
DOLJQDFURVVWKH37DQG37GHYHORSPHQW
SURJUDPV


7DEOHDQG6HFWLRQ
x
$PHQGPHQWFODULILHVWKDWVPRNLQJVWDWXVZLOOEH
HYDOXDWHGDWHDFKVWXG\YLVLW



x
7KLVFKDQJHWRWKHWDEOHDQGWH[WUHIOHFWVZKDWLV
FXUUHQWO\EHLQJSHUIRUPHGLQWKHVWXG\

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

6HFWLRQ

1HZWH[WFODULILHVWKHIROORZLQJ
x
7KHHIILFDF\HVWLPDQGZLOOEHWKHSULPDU\
DQDO\VLV
x
7KHDWWULEXWDEOHHVWLPDQGZLOOEHD
VHFRQGDU\DQDO\VLV
x
7KHWUHDWPHQWSROLF\HVWLPDQGZLOOEHD
VXSSRUWLYHDQDO\VLV




x
1HZWH[WFODULILHVWKHUHODWLRQVKLSEHWZHHQWKH
HVWLPDQGVDQGWKHDQDO\VLVSRSXODWLRQVDQG
FRPPXQLFDWHVWKHKLHUDUFK\RIWKHHVWLPDQG
DQDO\VHV

6HFWLRQVDQG
x
$PHQGPHQWUHPRYHVWKHSHUSURWRFRO
SRSXODWLRQDVDQDQDO\VLVSRSXODWLRQ$OO
UHIHUHQFHVWRWKHSHUSURWRFROSRSXODWLRQDUH
UHPRYHG


x
7KHSHUSURWRFROSRSXODWLRQLVRQO\UHTXLUHGIRU
QRQLQIHULRULW\DQDO\VHV1RQRQLQIHULRULW\
DQDO\VHVDUHVSHFLILHGDWWKLVWLPH

6HFWLRQ
x
³&RXQWU\´ZDVDGGHGWRWKHVWDWLVWLFDOPRGHO
x
7KHGHILQLWLRQRI&,'ZDVDPHQGHGWRLQFOXGHD
FRQGLWLRQIRU7',



x
7KHVWDWLVWLFDOPRGHODQGGHILQLWLRQRI&,'ZHUH
XSGDWHGWRDOLJQDFURVVWKH37DQG37
GHYHORSPHQWSURJUDPV

6HFWLRQ
x
/DQJXDJHUHJDUGLQJWKHXVHRIXQVFKHGXOHGYLVLW
GDWDZDVUHPRYHG



x
7KHWH[WZDVUHPRYHGWRDOLJQDFURVVWKH37
DQG37GHYHORSPHQWSURJUDPV

6HFWLRQ
x
/DQJXDJHUHJDUGLQJDQ,77DQDO\VLVZDV
UHPRYHG



x
³2WKHU´HQGSRLQWVZLOOEHDQDO\]HGRQO\IRUWKH
HIILFDF\HVWLPDQGLQWKHP,77SRSXODWLRQDV
WKLVLVWKHSULPDU\HVWLPDQGRILQWHUHVW

6HFWLRQ
x
1HZWH[WFODULILHVWKDWWKHDQDO\VLVRIWLPHWR
GHDWKLVFRQGLWLRQDORQREVHUYLQJRUPRUH
GHDWKVLQWKHVWXG\


x
$PLQLPXPQXPEHURIHYHQWVLVQHHGHGWRILW
WKHPRGHODQGWRSURYLGHDUHDVRQDEOHHVWLPDWH
RIWKHKD]DUGUDWLR,I³'HDWK´LVQRWDQDO\]HG
IRUHIILFDF\LWZLOOEHHYDOXDWHGGHVFULSWLYHO\
IRUVDIHW\

6HFWLRQ

x
1HZWH[WFODULILHVWKHJHQHUDOVXPPDUL]DWLRQ
VWUDWHJ\IRUWKH(4'/GDWD





x
1HZWH[WFODULILHVWKHFXUUHQWVXPPDUL]DWLRQ
VWUDWHJ\IRUWKLVLQVWUXPHQW

6HFWLRQ



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

1HZWH[WUHYDPSVWKH7\SH,(UURUFRQWURO
VWUDWHJ\WRDFFRXQWIRUQHZVHFRQGDU\HQGSRLQWV
DQGWKHDQDO\VLVRIWKHSULPDU\HQGSRLQWXQGHU
WKHDWWULEXWDEOHHVWLPDQG


x
1HZVHFRQGDU\HQGSRLQWVDQGWKHLQFOXVLRQRI
WKHSULPDU\HQGSRLQWDVDILUVWVHFRQGDU\
HQGSRLQWIRUWKHDWWULEXWDEOHHVWLPDQGUHTXLUHGD
QHZ7\SH,HUURUFRQWUROVWUDWHJ\

6HFWLRQ

x
1HZWH[WGHILQHVEDVHOLQH(&*DVWKHDYHUDJHRI
WKHSUHGRVHPHDVXUHPHQWVWDNHQSULRUWR
WUHDWPHQWDWWKHUDQGRPL]DWLRQYLVLW




x
%DVHOLQH(&*ZDVGHILQHGDVWKHPRVWUHFHQW
SUHWUHDWPHQW(&*DWWKHUDQGRPL]DWLRQYLVLW
7KLVQHZGHILQLWLRQDFFRXQWVIRUERWKSUH
WUHDWPHQW(&*PHDVXUHPHQWVDWWKH
UDQGRPL]DWLRQYLVLW

6HFWLRQ

x
1HZWH[WDOORZVIRUWKHSRVVLELOLW\RI
SHUIRUPLQJDGGLWLRQDODQDO\VHVRIWKH+&58
GDWDEH\RQGGHVFULSWLYHVXPPDULHV





x
$GGLWLRQDODQDO\VHVRIWKH+&58GDWDPD\EH
SHUIRUPHGEH\RQGGHVFULSWLYHVXPPDULHV

6HFWLRQ

x
6HFWLRQZDVUHQDPHGWREH³$QDO\VLV
3RSXODWLRQVDQG(VWLPDQGV´
x
7ZRVXEVHFWLRQVDQGZHUH
FUHDWHGWRGHILQH³DQDO\VLVSRSXODWLRQV´DQG
³HVWLPDQGV´UHVSHFWLYHO\
x
/DQJXDJHZDVDGGHGWRWKHEHJLQQLQJRI6HFWLRQ
WRUHIHUHQFH6HFWLRQ





x
7KLVVHFWLRQZDVUHFRQILJXUHGWRGHVFULEHERWK
HVWLPDQGVDQGDQDO\VLVSRSXODWLRQVLQWKHVDPH
VHFWLRQ

6HFWLRQ

x
1HZWH[WSURYLGHVPRUHGHWDLOIRUWKHP,77
SRSXODWLRQGHILQLWLRQ
x
1HZWH[WGHILQHVD5HVFXH9HQWROLQ8VHU598
SRSXODWLRQ
x
1HZWH[WIRUVDIHW\SRSXODWLRQZDVLQVHUWHG



x
1HZWH[WFODULILHVWKHP,77SRSXODWLRQ
GHILQLWLRQ
x
'XHWRWKHH[SHFWDWLRQWKDWVRPHVXEMHFWVZLOO
QRWEHWDNLQJUHVFXHPHGLFDWLRQDWEDVHOLQHDQG
KHQFHQRWEHFDSDEOHRILPSURYLQJZLWK
WUHDWPHQWWKH598SRSXODWLRQLVGHILQHGDQG
ZLOOEHXVHGLQWKHHYDOXDWLRQRIUHVFXH
PHGLFDWLRQXVDJH
x
1HZWH[WIRUWKHVDIHW\SRSXODWLRQLVLQVHUWHGWR
PDNHWKHGHILQLWLRQFRQVLVWHQWDFURVVWKHFOLQLFDO
GHYHORSPHQWSURJUDPZKLFKUHVXOWHGLQQR
PDWHULDOFKDQJHLQWKHGHILQLWLRQ
x
1HZWH[WPDNHVLWHDVLHUWRXQGHUVWDQGZKDW
DQDO\VHVZLOOEHSHUIRUPHGLQZKDWSRSXODWLRQV

6HFWLRQ





%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
x
7KLVQHZVHFWLRQGHILQHVWKHHVWLPDQGVWREH
XVHGLQWKHVWXG\
x
7KLVQHZVHFWLRQZDVLQVHUWHGWRFRPPXQLFDWH
ZKDWHVWLPDQGVZLOOEHXVHGLQWKHDQDO\VLVRI
WKHFOLQLFDOWULDOGDWD 

6HFWLRQ

x
7KLVQHZVHFWLRQGHVFULEHVWKHVXEJURXS
DQDO\VHVWREHSHUIRUPHG




x
7KLVQHZVHFWLRQFODULILHVWKHSUHVSHFLILHG
VXEJURXSDQDO\VHVLQWKHVWXG\
Other administrative changes to correct and/or clarify protocol language were also addressed. These 
changes included edits for consistency, grammar, and typographical errors, which are not summarized in 
this table. 













%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
6<1236,6
6SRQVRU
3HDUO7KHUDSHXWLFV,QF3HDUO
&DUGLQDO:D\QG)ORRU
5HGZRRG&LW\&$
1DPHRI)LQLVKHG3URGXFW
%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO37%))0',
)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO37))0',
1DPHRI$FWLYH,QJUHGLHQW
%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH
)RUPRWHURO)XPDUDWH
6WXG\7LWOH
$5DQGRPL]HG'RXEOH%OLQG3DUDOOHO*URXS0XOWL&HQWHU6WXG\WR$VVHVVWKH(IILFDF\
DQG6DIHW\RI37FRPSDUHGWR37LQ6XEMHFWV:LWK0RGHUDWHWR9HU\6HYHUH
&23'
6WXG\1XPEHU37
6WXG\3KDVH,,,
3ULPDU\2EMHFWLYH
x 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQOXQJIXQFWLRQ
6HFRQGDU\2EMHFWLYHV
x 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQ&23'H[DFHUEDWLRQV
x 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQV\PSWRPVRI&23'
x 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQTXDOLW\RIOLIH
6DIHW\2EMHFWLYH
x 7RDVVHVVWKHVDIHW\RI%))0',DQG))0',
6WXG\3RSXODWLRQ
$SSUR[LPDWHO\VXEMHFWVZLWKPRGHUDWHWRYHU\VHYHUH&23'ZLOOEHHQUROOHGWR
SURYLGHDSSUR[LPDWHO\FRPSOHWHGVXEMHFWV7KLVVWXG\ZLOOEHFRQGXFWHGLQ
DSSUR[LPDWHO\VLWHVZLWKHDFKVLWHHQUROOLQJWRVXEMHFWV
7REHHOLJLEOHIRUWKHVWXG\VXEMHFWVPXVW
x EHUHFHLYLQJRUPRUHLQKDOHGPDLQWHQDQFHEURQFKRGLODWRUVDWIRUDWOHDVWZHHNV
SULRUWR9LVLW
x VFRUHRQWKH&$7DW9LVLW
x H[KLELW)(9RIWKHSUHGLFWHGQRUPDOYDOXHFDOFXODWHGXVLQJDSSURSULDWH
UHIHUHQFHHTXDWLRQVDW9LVLW
x KDYHDGRFXPHQWHGKLVWRU\RIDWOHDVWPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQLQWKH
SUHYLRXVPRQWKV
6WXG\'HVLJQ
7KLVLVD3KDVH,,,UDQGRPL]HGGRXEOHEOLQGSDUDOOHOJURXSPXOWLFHQWHUYDULDEOHOHQJWK
HIILFDF\DQGVDIHW\VWXG\ZLWK%))0',JDQGJFRPSDUHGWR))
0',JDGPLQLVWHUHG%,'
6XEMHFWVZLOOXQGHUJRDWRZHHN6FUHHQLQJ3HULRG,QLQVWDQFHVZKHUHD&23'
H[DFHUEDWLRQKDVRFFXUUHGGXULQJWKH6FUHHQLQJ3HULRGWKH6FUHHQLQJ3HULRGPD\EH
H[WHQGHGWRDPD[LPXPRIZHHNVWRDFFRXQWIRUDFRXUVHRIRUDOFRUWLFRVWHURLGVDQGRU
DQWLELRWLFVRIXSWRZHHNVLQGXUDWLRQDQGDZHHNSHULRGRIZDVKRXWDIWHUWUHDWPHQW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
,QRUGHUWRDOORZIRUDGHTXDWHZDVKRXWRISUHYLRXV&23'PDLQWHQDQFHPHGLFDWLRQV
VXEMHFWVZLOOXQGHUJRD:DVKRXW3HULRGRIZHHNRUORQJHUGHSHQGLQJRQWKHLUVSHFLILF
PHGLFDWLRQVEXWQRJUHDWHUWKDQGD\VSULRUWRUHWXUQLQJWRFOLQLFIRU9LVLW
$W9LVLWVXEMHFWVWKDWDUHUHFHLYLQJDQ,&6/$%$ZLOOGLVFRQWLQXHWKH,&6/$%$EXW
ZLOOFRQWLQXHWKH,&6FRPSRQHQWIRUWKHUHPDLQGHURIWKH6FUHHQLQJ3HULRG6LPLODUO\
VXEMHFWVWUHDWHGZLWKDQ,&6DVSDUWRIWKHLULQKDOHGPDLQWHQDQFHWKHUDS\ZLOOFRQWLQXH
WKHLU,&6IRUWKHUHPDLQGHURIWKH6FUHHQLQJ3HULRG
6XEMHFWVZLOOEHSODFHGRQ6SRQVRUSURYLGHG9HQWROLQ+)$DOEXWHUROVXOIDWHLQKDODWLRQ
DHURVROIRUUHVFXHXVHWKURXJKRXWWKH6FUHHQLQJDQG5DQGRPL]HG7UHDWPHQW3HULRGV
6XEMHFWVZKRVXFFHVVIXOO\FRPSOHWHWKH6FUHHQLQJ3HULRGZLOOEHUDQGRPL]HGLQD
VFKHPHWRRQHRIWKHIROORZLQJWKUHHWUHDWPHQWJURXSV
x %))0',J%,'1 
x %))0',J%,'1 
x ))0',J%,'1 
5DQGRPL]DWLRQZLOOEHVWUDWLILHGE\H[DFHUEDWLRQKLVWRU\RUPRGHUDWHRUVHYHUH
H[DFHUEDWLRQVSRVWEURQFKRGLODWRU)(9WRSUHGLFWHGRUWR
SUHGLFWHGPHDVXUHGDW9LVLWEORRGHRVLQRSKLOFRXQWFHOOVSHUPPRUFHOOV
SHUPPDQGFRXQWU\(QUROOPHQWZLOOEHWDUJHWHGWRDFKLHYHDUDWLRIRUWKHEORRG
HRVLQRSKLOVWUDWDZLWKWZLFHDVPDQ\UDQGRPL]HGVXEMHFWVLQWKHFHOOVSHUPP
FDWHJRU\5HYHUVLELOLW\RI)(9WR9HQWROLQZLOOEHWHVWHGDW9LVLWIRUFKDUDFWHUL]DWLRQ
SXUSRVHVRQO\)ROORZLQJUDQGRPL]DWLRQVXEMHFWVZLOOHQWHUWKH5DQGRPL]HG7UHDWPHQW
3HULRGDQGXQGHUJRXSWRDGGLWLRQDOWUHDWPHQWYLVLWVRYHUZHHNV
6XEMHFWVZKRGLVFRQWLQXHUDQGRPL]HGVWXG\WUHDWPHQWSULRUWRWKHHQGRIVWXG\ZLOOEH
HQFRXUDJHGWRUHPDLQLQWKHVWXG\WRFRPSOHWHDOOUHPDLQLQJVWXG\YLVLWV
7HVW3URGXFW'RVHDQG0RGHRI$GPLQLVWUDWLRQ
,QYHVWLJDWLRQDOPDWHULDOVZLOOEHSURYLGHGE\WKH6SRQVRUDVVKRZQEHORZ
3URGXFW1DPH	'RVH
3URGXFW6WUHQJWK
'RVDJH)RUP)LOO&RXQW
$GPLQLVWUDWLRQ
6WXG\0HGLFDWLRQV
%))0',J
JSHUDFWXDWLRQ
0',LQKDODWLRQV
7DNHQDVLQKDODWLRQV%,'
%))0',J
JSHUDFWXDWLRQ
0',LQKDODWLRQV
7DNHQDVLQKDODWLRQV%,'
))0',J
JSHUDFWXDWLRQ
0',LQKDODWLRQV
7DNHQDVLQKDODWLRQV%,'
2SHQ/DEHO3URGXFWV
$OEXWHURO6XOIDWHLQKDODWLRQ
DHURVROȝJD

9HQWROLQ+)$E
(DFKLQKDODWLRQFRQWDLQV
ȝJDOEXWHUROVXOIDWH
FRUUHVSRQGLQJWRJ
DOEXWHUROEDVH
0',RULQKDODWLRQV
LQKDODWLRQVIRU
UHYHUVLELOLW\WHVWLQJDW
9LVLW
7DNHDVQHHGHGWKURXJKRXW
VFUHHQLQJDQGWUHDWPHQW
SHULRGV
%,' 7ZLFH'DLO\%))0', %XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO))0', )RUPRWHURO)XPDUDWH,QKDODWLRQ
$HURVRO+)$ +\GURIOXRURDONDQH0', 0HWHUHG'RVH,QKDOHU
D$OEXWHUROVXOIDWHLVDOVRNQRZQDVVDOEXWDPROVXOIDWHLQVRPHFRXQWULHV
E8QLWHG6WDWHV86VRXUFHGSURGXFWVDUHWKHSUHIHUUHGSURGXFW,QFDVHVZKHUHLWLVQRWSRVVLEOHIRUWKH86VRXUFHGSURGXFWWREHXVHGD
ORFDOO\DYDLODEOHSURGXFWZLOOEHSURYLGHGE\WKH6SRQVRU

'XUDWLRQRI7UHDWPHQW
)ROORZLQJUDQGRPL]DWLRQHDFKVXEMHFWLVSODQQHGWRUHFHLYHUDQGRPL]HGWUHDWPHQWIRUDW
OHDVW7KHVWXG\ZLOOHQGZKHQWKHODVWUHPDLQLQJUDQGRPL]HGVXEMHFWFRPSOHWHV
ZHHNVRQUDQGRPL]HGWUHDWPHQWRUFRPSOHWHVWKH)LQDO6WXG\9LVLW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
'XUDWLRQRI6WXG\
7KHGXUDWLRQRIWKHVWXG\LVYDULDEOHDQGZLOOHQGZKHQWKHODVWUHPDLQLQJUDQGRPL]HG
VXEMHFWFRPSOHWHVZHHNVRQUDQGRPL]HGWUHDWPHQWRUFRPSOHWHVWKH)LQDO6WXG\9LVLW
7KHVWXG\LVDQWLFLSDWHGWRODVWDSSUR[LPDWHO\PRQWKVDQGLVQRWH[SHFWHGWRH[FHHG
PRQWKV
(IILFDF\(QGSRLQWV86UHJXODWRU\DSSURDFK
3ULPDU\
 0RUQLQJSUHGRVHWURXJK)(9DW:HHN
6HFRQGDU\
 7LPHWRILUVWPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQ
 &KDQJHIURPEDVHOLQHLQDYHUDJHGDLO\UHVFXH9HQWROLQ+)$XVHRYHUZHHNV
 3HUFHQWDJHRIVXEMHFWVDFKLHYLQJDQ0&,'RIXQLWVRUPRUHLQ6DLQW*HRUJH¶V
5HVSLUDWRU\4XHVWLRQQDLUH6*54WRWDOVFRUHDW:HHN
$GGLWLRQDOHIILFDF\HQGSRLQWVLQFOXGLQJWKRVHIRUWKH([86UHJXODWRU\DSSURDFKDUH
GHVFULEHGLQ6HFWLRQ
5HIHUWR6HFWLRQIRUWKH&23'([DFHUEDWLRQGHILQLWLRQ
6DIHW\(QGSRLQWV
 $GYHUVHHYHQWV$(V
 9LWDOVLJQV
 &OLQLFDOODERUDWRU\WHVWLQJ
 OHDGHOHFWURFDUGLRJUDPV(&*V
6WDWLVWLFDO0HWKRGV
3ODQQHG$QDO\VHV
7KHSULPDU\HIILFDF\HQGSRLQWRIPRUQLQJSUHGRVHWURXJK)(9ZLOOEHDQDO\]HGXVLQJD
OLQHDUUHSHDWHGPHDVXUHV$1&29$PRGHO7KHSULPDU\HIILFDF\DQDO\VHVZLOOEH
FRQGXFWHGRQWKHP,773RSXODWLRQ)XUWKHULQIRUPDWLRQDERXWWKHSULPDU\HIILFDF\
DQDO\VHVDORQJZLWKDOORWKHUSODQQHGDQDO\VHVDUHSUHVHQWHGLQ6HFWLRQ
6DPSOH6L]H
)RUWKHDQDO\VLVRIPRUQLQJSUHGRVHWURXJK)(9DW:HHN865HJXODWRU\$SSURDFK
WKHSURSRVHGVDPSOHVL]HRIVXEMHFWVZLWKGURSRXWZLOOSURYLGHSRZHUWR
GHWHFWDGLIIHUHQFHRIP/EHWZHHQ%))0',DQG))0',7KH7\SH,HUURUUDWHZLOOEH
FRQWUROOHGDWDWZRVLGHGDOSKDOHYHORI)XUWKHULQIRUPDWLRQDERXWWKHVDPSOHVL]H
FDOFXODWLRQVDQGWKH86YVH[86UHJXODWRU\DSSURDFKHVDUHSUHVHQWHGLQ6HFWLRQ
'DWD0RQLWRULQJ&RPPLWWHH
$QLQGHSHQGHQWH[WHUQDO'DWD0RQLWRULQJ&RPPLWWHH'0&ZLOOEHVHWXSWRUHYLHZDOO
VHULRXVDGYHUVHHYHQWVLQFOXGLQJGHDWKVDQGDOOKRVSLWDOL]DWLRQVDQGSUHGHILQHG
FDUGLRYDVFXODUHYHQWV0HPEHUVRIWKH'0&ZLOOUHYLHZWKHVHGDWDJHQHUDWHGH[WHUQDOO\
DQGLQGHSHQGHQWO\RIWKH6SRQVRUDWSUHGHWHUPLQHGLQWHUYDOV%DVHGRQWKHVDIHW\
LPSOLFDWLRQVRIWKHGDWDWKH'0&PD\UHFRPPHQGVWXG\PRGLILFDWLRQRUWHUPLQDWLRQRI
WKHVWXG\
&OLQLFDO(QGSRLQW&RPPLWWHH
$EOLQGHGLQGHSHQGHQWH[WHUQDOFOLQLFDOHQGSRLQWFRPPLWWHHKDVEHHQLPSOHPHQWHGIRU
WKLVVWXG\7KHFRPPLWWHHZLOOUHYLHZDSSURYHDQGRSHUDWHDFFRUGLQJWRWKUHH&OLQLFDO
(QGSRLQW$GMXGLFDWLRQ&KDUWHUVWKDWKDYHEHHQHVWDEOLVKHGIRUWKLVVWXG\
 &DUGLRDQG&HUHEURYDVFXODU&&9&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 &DXVH6SHFLILF0RUWDOLW\&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU
 3QHXPRQLD&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU
'DWHRI2ULJLQDO$SSURYHG3URWRFRO)HEUXDU\
'DWHRI$PHQGHG3URWRFRO-DQXDU\



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7$%/(2)&217(176
6800$5<2)&+$1*(672$0(1'('35272&2/379(56,21
'$7(''(&(0%(5
6<1236,6
7$%/(2)&217(176
/,672),17(;77$%/(6
/,672),17(;7),*85(6
$33(1',&(6
/,672)$%%5(9,$7,216$1''(),1,7,2162)7(506
75$'(0$5.,1)250$7,21

,1752'8&7,21

&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH

%))0',

678'<2%-(&7,9(6

3ULPDU\2EMHFWLYH

6HFRQGDU\2EMHFWLYHV

6DIHW\2EMHFWLYH

+HDOWKFDUH5HVRXUFH8WLOL]DWLRQ+&582EMHFWLYH

678'<(1'32,176

3ULPDU\(IILFDF\(QGSRLQW

6HFRQGDU\(IILFDF\(QGSRLQWV

2WKHU(IILFDF\(QGSRLQWV

6DIHW\(QGSRLQWV

+HDOWK&DUH5HVRXUFH8WLOL]DWLRQ(QGSRLQWV

,19(67,*$7,21$/3/$1

2YHUDOO6WXG\'HVLJQDQG3ODQ

5DWLRQDOHRI6WXG\DQG6WXG\'HVLJQ

2YHUDOO6WXG\

3RSXODWLRQ

&KRLFHRI6WXG\'RVHV

&KRLFHRI&RPSDUDWRUV&RQWURO*URXSV

6WXG\'XUDWLRQ

678'<3238/$7,216(/(&7,21$1'(/,*,%,/,7<

,QFOXVLRQ&ULWHULD

([FOXVLRQ&ULWHULD

6XEMHFW,GHQWLILFDWLRQ

3ULRU&RQFRPLWDQWDQG3URKLELWHG0HGLFDWLRQV

3ULRU0HGLFDWLRQV

&RQFRPLWDQW0HGLFDWLRQVDQG9DFFLQDWLRQV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

$OORZHG0HGLFDWLRQVWR7UHDWD&23'([DFHUEDWLRQ
3QHXPRFRFFDODQG$QQXDO,QIOXHQ]D9DFFLQDWLRQ

3URKLELWHG0HGLFDWLRQV

2WKHU3URKLELWHG0HGLFDWLRQV

2WKHU5HVWULFWLRQV,OOLFLW'UXJVRU'UXJVRI$EXVH

,OOLFLW'UXJVRU'UXJVRI$EXVH

'LHWDU\5HVWULFWLRQV

6PRNLQJ6WDWXV

5HDVRQVIRU7UHDWPHQW'LVFRQWLQXDWLRQRU6WXG\:LWKGUDZDO

5HDVRQVIRU7UHDWPHQW'LVFRQWLQXDWLRQ

5HDVRQVIRU6WXG\:LWKGUDZDO

/$%(/,1*3$&.$*,1*6725$*(',63(16,1*$1'5(78512)
&/,1,&$/6833/,(6

6XEMHFW,QIRUPDWLRQ

3URGXFW'HVFULSWLRQ

3ULPDU\3DFNDJLQJDQG/DEHOLQJ

6HFRQGDU\3DFNDJLQJDQG/DEHOLQJ

(PHUJHQF\8QEOLQGLQJRI7UHDWPHQW$VVLJQPHQW

6WRUDJH5HTXLUHPHQWV

,QVWUXFWLRQVIRU'LVSHQVLQJDQG3UHSDUDWLRQRI7UHDWPHQWVIRU$GPLQLVWUDWLRQ

%))0',DQG))0',

9HQWROLQ+)$$OEXWHURO6XOIDWH

'UXJ$FFRXQWDELOLW\5HWXUQRI&OLQLFDO6XSSOLHV

678'<352&('85(6

(IILFDF\$VVHVVPHQWV

3XOPRQDU\)XQFWLRQ7HVWV3)7V

&KDUDFWHUL]DWLRQRI5HYHUVLELOLW\

)(9%DVHOLQH6WDELOLW\&ULWHULD

6XEMHFW¶V(OHFWURQLF'LDU\'DWD&ROOHFWLRQ

5HVFXH0HGLFDWLRQ8VH

0HGLFDWLRQ&RPSOLDQFH

0DMRUPLQRU6\PSWRP:RUVHQLQJ$VVHVVPHQWDQG$OHUW6\VWHP

&23'([DFHUEDWLRQ

6HYHULW\RI&23'([DFHUEDWLRQ

'XUDWLRQRI&23'([DFHUEDWLRQ

$SSURDFKIRU&DSWXULQJ&23'([DFHUEDWLRQV

,QYHVWLJDWRUMXGJHG&23'([DFHUEDWLRQV

6XEMHFW4XHVWLRQQDLUHV

&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH$VVHVVPHQW7HVW&$7

%DVHOLQH'\VSQHD,QGH[DQG7UDQVLWLRQ'\VSQHD,QGH[
%',7',

6W*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH6*54

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

(XURSHDQ4XDOLW\RI/LIH'LPHQVLRQV4XHVWLRQQDLUH(4'
/

([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO(;$&7

6DIHW\$VVHVVPHQWV

0HGLFDO6XUJLFDO+LVWRU\DQG3K\VLFDO([DPLQDWLRQ

9LWDO6LJQ0HDVXUHPHQWV

/HDG(OHFWURFDUGLRJUDP

&OLQLFDO/DERUDWRU\7HVWV

+HPDWRORJ\

&OLQLFDO&KHPLVWU\

8ULQDO\VLV

3UHJQDQF\7HVW

$GYHUVH(YHQWV

3HUIRUPLQJ$GYHUVH(YHQW$($VVHVVPHQWV

$('HILQLWLRQV

3UH5DQGRPL]DWLRQ$(V

6HYHULW\

5HODWLRQVKLSWR6WXG\GUXJ

&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH([DFHUEDWLRQV

$(VRI6SHFLDO,QWHUHVW

/$%$(IIHFWV

/RFDO6WHURLG(IIHFWV

3QHXPRQLD

3DUDGR[LFDO%URQFKRVSDVP

0DMRU$GYHUVH&DUGLRYDVFXODU(YHQWV0$&(

&OLQLFDO/DERUDWRU\$GYHUVH(YHQWV

6HULRXV$GYHUVH(YHQWV6$(V

5HSRUWLQJRI6HULRXV$GYHUVH(YHQWV

6XSSOHPHQWDO,QYHVWLJDWLRQVRI6$(V

3RVW6WXG\)ROORZ8SRI$GYHUVH(YHQWV

1RWLILFDWLRQRI3RVW6WXG\6HULRXV$GYHUVH(YHQWV

,QVWLWXWLRQDO5HVHDUFK%RDUG,QGHSHQGHQW(WKLFV&RPPLWWHH
1RWLILFDWLRQRI6HULRXV$GYHUVH(YHQWV

+HDOWK$XWKRULW\6DIHW\5HSRUWV

2YHUGRVH

3UHJQDQF\

3DWHUQDO([SRVXUH

+\¶V/DZ

8VHRI6WHURLGVGXULQJWKH6WXG\

&OLQLFDO(QGSRLQW&RPPLWWHH
&DUGLRYDVFXODUDQG&HUHEURYDVFXODU&&9&OLQLFDO(QGSRLQW$GMXGLFDWLRQ
&KDUWHU
&DXVH6SHFLILF0RUWDOLW\&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
3QHXPRQLD&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU

'DWD0RQLWRULQJ&RPPLWWHH

+HDOWKFDUH5HVRXUFH8WLOL]DWLRQ

7HUPLQDWLRQRIWKH6WXG\

678'<$&7,9,7,(6

9LVLW6FUHHQLQJ

9LVLW6FUHHQLQJ

9LVLW5DQGRPL]DWLRQ'D\

,Q&OLQLF9LVLWVDQG:HHNVDQG

7HOHSKRQH&RQWDFWDW9LVLWVDQG:HHNVDQG

9LVLW:HHNRU)LQDO6WXG\9LVLW

3URFHGXUHVIRU7UHDWPHQW'LVFRQWLQXDWLRQDQG6WXG\:LWKGUDZDO6XEMHFWV

8QVFKHGXOHG9LVLWDQG7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLW

)ROORZXS7HOHSKRQH&DOO

9LWDO6WDWXV&RQILUPDWLRQ

&RPSOHWLRQRIWKH6WXG\

3/$11('67$7,67,&$/0(7+2'6

,QWURGXFWLRQ

3URWRFRO9DULDEOHV

(IILFDF\(QGSRLQWV

6DIHW\(QGSRLQWV

+&58(QGSRLQWV

(IILFDF\$QDO\VLV

3ULPDU\(IILFDF\$QDO\VLV

0RUQLQJ3UHGRVH7URXJK)(9

6HFRQGDU\(IILFDF\$QDO\VLV

7LPHWR)LUVW0RGHUDWHRU6HYHUH&23'([DFHUEDWLRQ

7LPHWR)LUVW&OLQLFDOO\,PSRUWDQW'HWHULRUDWLRQ

5HVFXH9HQWROLQ+)$8VDJH

([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO(;$&7

6W*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH6*54

7UDQVLWLRQ'\VSQHD,QGH[

2WKHU(IILFDF\$QDO\VLV

5DWHRI&23'([DFHUEDWLRQV

6SLURPHWU\3DUDPHWHUV&KDQJHIURP%DVHOLQHLQ0RUQLQJ3UH
'RVH7URXJK9DOXHV

7LPHWR(YHQW$QDO\VHV

([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO(;$&7

5HVFXH9HQWROLQ+)$8VDJH

7UDQVLWLRQ'\VSQHD,QGH[

6W*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH6*54

(XUR4R/('''LPHQVLRQV4XHVWLRQQDLUH(4'/

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

7\SH,(UURU&RQWURO

86$SSURDFK

([86$SSURDFK

6DIHW\$QDO\VLV

$GYHUVH(YHQWV

3DUDGR[LFDO%URQFKRVSDVP

&OLQLFDO/DERUDWRU\0HDVXUHPHQWV

9LWDO6LJQV

(&*V

+&58$QDO\VHV

5DQGRPL]DWLRQ

([SHULPHQWDO'HVLJQ

6DPSOH6L]H&RQVLGHUDWLRQ

'DWD9DOLGDWLRQDQG7UDQVIRUPDWLRQ

$QDO\VLV3ODQ

$QDO\VLV3RSXODWLRQVDQG(VWLPDQGV

$QDO\VLV3RSXODWLRQV

(VWLPDQGV

6XEJURXS$QDO\VHV

+DQGOLQJRI0LVVLQJ'DWD

6WDWLVWLFDO6RIWZDUH
 $'0,1,675$7,9(&216,'(5$7,216

5HJXODWRU\$XWKRULW\$SSURYDO

(WKLFDO&RQGXFWRIWKH6WXG\DQG,5%RU,(&$SSURYDO

6XEMHFW,QIRUPDWLRQDQG&RQVHQW

&RQILGHQWLDOLW\

&RQILGHQWLDOLW\RI'DWD

&RQILGHQWLDOLW\RI6XEMHFW3DWLHQW5HFRUGV

4XDOLW\&RQWURODQG$VVXUDQFH

'DWD0DQDJHPHQW

6WXG\0RQLWRULQJ

5HWHQWLRQRI'DWD

)LQDQFLDO'LVFORVXUH
 ,QYHVWLJDWRU¶V)LQDO5HSRUW
 3XEOLFDWLRQ3ROLF\
 5()(5(1&(/,67
 $33(1',&(6



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
/,672),17(;77$%/(6
7DEOH
3URKLELWHG&23'0HGLFDWLRQVDQG5HTXLUHG:DVKRXW3HULRGV3ULRUWR
9LVLW
7DEOH
3URKLELWHG&RUWLFRVWHURLGVDQG5HTXLUHG:DVKRXW3HULRGV3ULRUWR9LVLW

7DEOH
2WKHU3URKLELWHG5HVSLUDWRU\DQGRU1DVDO0HGLFDWLRQVDQG5HTXLUHG
:DVKRXW3HULRGV3ULRUWR9LVLW
7DEOH
1RQ&23'DQG1RQ5HVSLUDWRU\3URKLELWHG0HGLFDWLRQV
7DEOH
1RQ&23'0HGLFDWLRQV$OORZHG8QGHU&HUWDLQ&RQGLWLRQV
7DEOH
3URGXFW'HVFULSWLRQV
7DEOH
'HVFULSWLRQRI%R[HV
7DEOH
&OLQLFDO/DERUDWRU\7HVWV
7DEOH
2YHUDOO6FKHGXOHRI6WXG\(YHQWV
7DEOH
7LPHG$VVHVVPHQWVIRUDOO3RVWUDQGRPL]DWLRQ,QFOLQLF9LVLWV
DQG:HHNRU)LQDO6WXG\9LVLW@
7DEOH$ 5HFRPPHQGHG0LQLPDO6FDOH)DFWRUVIRU7LPH9ROXPHDQG)ORZRQ
*UDSKLFDO2XWSXW
7DEOH$ 6XPPDU\RI(TXLSPHQW4XDOLW\&RQWURO
7DEOH$ 5DQJHDQG$FFXUDF\5HFRPPHQGDWLRQV6SHFLILHGIRU)RUFHG
([SLUDWRU\0DQHXYHUV

/,672),17(;7),*85(6
)LJXUH
6WXG\'HVLJQ
)LJXUH
*URXS7\SH,(UURU&RQWUROIRUWKH$QDO\VHVRIWKH3ULPDU\
(QGSRLQWV86$SSURDFK
)LJXUH
*URXS7KH$QDO\VLVRIWKH6HFRQGDU\(QGSRLQWV86$SSURDFK
)LJXUH
*URXS7\SH,(UURU&RQWUROIRUWKH$QDO\VHVRIWKH3ULPDU\
(QGSRLQWV([86$SSURDFK
)LJXUH
*URXS7KH$QDO\VLVRIWKH6HFRQGDU\(QGSRLQWV([86$SSURDFK
)LJXUH$ ([DPSOHRID8VDEOH6SLURJUDP

$33(1',&(6
$SSHQGL[ 6SLURPHWU\$VVHVVPHQW&ULWHULD
$SSHQGL[ 6SLURPHWU\3HUIRUPDQFH5HFRPPHQGDWLRQV
$SSHQGL[ 6XEMHFW,QVWUXFWLRQVIRU8VHRI%))0',DQG))0','HYLFHV
$SSHQGL[ ,QVWUXFWLRQVIRU8VHRI9HQWROLQ+)$,QKDOHU
$SSHQGL[ &23'$VVHVVPHQW7HVW&$7
$SSHQGL[ %',7',4XHVWLRQQDLUH
$SSHQGL[ 6W*HRUJH5HVSLUDWRU\4XHVWLRQQDLUH6*54
$SSHQGL[ (XUR4R/'LPHQVLRQV(4'4XHVWLRQQDLUH
$SSHQGL[ ([DFHUEDWLRQVRI&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH(;$&7
$SSHQGL[5XOHVIRU(YDOXDWLRQRI$EQRUPDO/LYHU/DERUDWRU\9DOXHV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL['RVH,QGLFDWRU5HDGLQJ
$SSHQGL[6SRQVRU6LJQDWRU\
$SSHQGL[,QYHVWLJDWRU¶V$JUHHPHQWDQG6LJQDWXUH3DJH



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
/,672)$%%5(9,$7,216$1''(),1,7,2162)7(506
$(
$GYHUVH(YHQW
$5
$XWRUHJUHVVLYH2UGHU
%',
%DVHOLQH'\VSQHD,QGH[
%))
%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH
%,'
Bis In Die7ZLFH'DLO\
%3
%ORRG3UHVVXUH
%30
%HDWV3HU0LQXWH
%736
%RG\7HPSHUDWXUHDQG3UHVVXUH6DWXUDWHG
&(&
&OLQLFDO(QGSRLQW&RPPLWWHH
&)5
&RGHRI)HGHUDO5HJXODWLRQV
&,
&RQILGHQFH,QWHUYDO
&,'
&OLQLFDOO\,PSRUWDQW'HWHULRUDWLRQ
&.'(3,
&KURQLF.LGQH\'LVHDVH(SLGHPLRORJ\&ROODERUDWLRQ(TXDWLRQ
DFFRUGLQJWR1DWLRQDO.LGQH\'LVHDVH(GXFDWLRQ3URJUDP
&216257
&21VROLGDWHG6WDQGDUGVRI5HSRUWLQJ7ULDOV
&23'
&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH
&5)
&DVH5HSRUW)RUP
&7
&RPSXWHUL]HG7RPRJUDSK\
'%3
'LDVWROLF%ORRG3UHVVXUH
(&*
(OHFWURFDUGLRJUDP
HJ
Exempli Gratia)RU([DPSOH
(56
(XURSHDQ5HVSLUDWRU\6RFLHW\
)'$
)RRGDQG'UXJ$GPLQLVWUDWLRQ
)(9
)RUFHG([SLUDWRU\9ROXPHLQ6HFRQG
))
)RUPRWHURO)XPDUDWH
)9&
)RUFHG9LWDO&DSDFLW\
*&3
*RRG&OLQLFDO3UDFWLFH
*2/'
*OREDO,QLWLDWLYHIRU&KURQLF2EVWUXFWLYH/XQJ'LVHDVH
K&*
+XPDQ&KRULRQLF*RQDGRWURSLQ
+5
+HDUW5DWH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
+)$
+\GURIOXRURDONDQH
,%6
,UULWDEOH%RZHO6\QGURPH
,&)
,QIRUPHG&RQVHQW)RUP
,&+
,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ
,&0-(
,QWHUQDWLRQDO&RPPLWWHHRI0HGLFDO-RXUQDO(GLWRUV
,&6
,QKDOHG&RUWLFRVWHURLG
LH
Id Est,7KDW,V
,(&
,QGHSHQGHQW(WKLFV&RPPLWWHH
,5%
,QVWLWXWLRQDO5HYLHZ%RDUG
,6033
,QWHUQDWLRQDO6RFLHW\IRU0HGLFDO3XEOLFDWLRQV3URIHVVLRQDOV
,77
,QWHQWWR7UHDW
,:56
,QWHUDFWLYH:HE5HVSRQVH6\VWHP
/
/LWHU
/$%$
/RQJ$FWLQJȕ$JRQLVW
/$0$
/RQJ$FWLQJ0XVFDULQLF$QWDJRQLVW
0',
0HWHUHG'RVH,QKDOHU
0HG'5$
0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
P,77
0RGLILHG,QWHQWWR7UHDW
P/
0LOOLOLWHU
PVHFPV
0LOOLVHFRQG
1+$1(6,,,
7KLUG1DWLRQDO+HDOWKDQG1XWULWLRQ([DPLQDWLRQ6XUYH\
27&
2YHUWKH&RXQWHU
3()5
3HDN([SLUDWRU\)ORZ5DWH
3,1
3HUVRQDO,GHQWLILFDWLRQ1XPEHU
3)7
3XOPRQDU\)XQFWLRQ7HVW
4,'
Quarter In Die)RXU7LPHV'DLO\
47F)
47&RUUHFWHG8VLQJ)ULGHULFLD¶V)RUPXOD47>55@
598
5HVFXH9HQWROLQ8VHU
6$%$
6KRUW$FWLQJ%HWD$JRQLVW
6$(
6HULRXV$GYHUVH(YHQW
6$3
6WDWLVWLFDO$QDO\VLV3ODQ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
6%3
6\VWROLF%ORRG3UHVVXUH
6'
6WDQGDUG'HYLDWLRQ
7',
7UDQVLWLRQ'\VSQHD,QGH[
86
8QLWHG6WDWHV
9&
9LWDO&DSDFLW\

75$'(0$5.,1)250$7,21
6$6
9HQWROLQ



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

,1752'8&7,21
7KH6SRQVRULVGHYHORSLQJDFRPELQDWLRQSURGXFW%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH
,QKDODWLRQ$HURVRO37KHUHDIWHUUHIHUUHGWRDVEXGHVRQLGHDQGIRUPRWHUROIXPDUDWH
PHWHUHGGRVHLQKDOHU>%))0',@DVDORQJWHUPWZLFHGDLO\%,'WUHDWPHQWIRUVXEMHFWV
ZLWKFKURQLFREVWUXFWLYHSXOPRQDU\GLVHDVH&23'7KH6SRQVRULVDOVRGHYHORSLQJWKH
LQGLYLGXDOSURGXFW)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO37KHUHDIWHUUHIHUUHGWRDV
IRUPRWHUROIXPDUDWHPHWHUHGGRVHLQKDOHU>))0',@DVD%,'PDLQWHQDQFHEURQFKRGLODWRU
WUHDWPHQWLQVXEMHFWVZLWK&23'

&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH
&23'LVDFRPPRQSUHYHQWDEOHDQGWUHDWDEOHGLVHDVHFKDUDFWHUL]HGE\SHUVLVWHQWDLUIORZ
OLPLWDWLRQWKDWLVXVXDOO\SURJUHVVLYHDQGDVVRFLDWHGZLWKDQHQKDQFHGFKURQLFLQIODPPDWRU\
UHVSRQVHLQWKHOXQJDQGDVVRFLDWHGDLUZD\VWRQR[LRXVSDUWLFOHVRUJDVHV&23'LVDOHDGLQJ
FDXVHRIPRUELGLW\DQGPRUWDOLW\ZRUOGZLGHDQGUHVXOWVLQDVLJQLILFDQWHFRQRPLFDQGVRFLDO
EXUGHQWKDWLVERWKVXEVWDQWLDODQGLQFUHDVLQJ>*OREDO,QLWLDWLYHIRU&KURQLF2EVWUXFWLYH
/XQJ'LVHDVH>*2/'@&23'H[DFHUEDWLRQVDUHFKDUDFWHUL]HGE\ZRUVHQLQJ
UHVSLUDWRU\V\PSWRPVEH\RQGQRUPDOGD\WRGD\YDULDWLRQVZKLFKOHDGVWRDFKDQJHLQ
PHGLFDWLRQ([DFHUEDWLRQVDQGFRPRUELGLWLHVFRQWULEXWHWRWKHRYHUDOOVHYHULW\LQLQGLYLGXDO
SDWLHQWV
%URQFKRGLODWRUPHGLFDWLRQVDUHFHQWUDOWRWKHV\PSWRPDWLFPDQDJHPHQWRI&23'7KH
SULQFLSDOEURQFKRGLODWRUWUHDWPHQWVDUHȕDJRQLVWVDQWLFKROLQHUJLFVXVHGDVPRQRWKHUDS\RU
LQFRPELQDWLRQ7UHDWPHQWZLWKORQJDFWLQJEURQFKRGLODWRUVLVPRUHFRQYHQLHQWDQGPRUH
HIIHFWLYHDWSURGXFLQJPDLQWDLQHGV\PSWRPUHOLHIWKDQWUHDWPHQWZLWKVKRUWDFWLQJ
EURQFKRGLODWRUV
:KHQFRPELQHGZLWKDORQJDFWLQJȕDJRQLVW/$%$DQLQKDOHGFRUWLFRVWHURLG,&6LV
PRUHHIIHFWLYHWKDQWKHLQGLYLGXDOFRPSRQHQWVLQLPSURYLQJOXQJIXQFWLRQTXDOLW\RIOLIH
DQGUHGXFLQJH[DFHUEDWLRQVLQVXEMHFWVZLWKPRGHUDWHWRYHU\VHYHUH&23'5HJXODU
WUHDWPHQWZLWK,&6LPSURYHVV\PSWRPVOXQJIXQFWLRQDQGTXDOLW\RIOLIHDQGUHGXFHVWKH
IUHTXHQF\RI&23'H[DFHUEDWLRQVLQVXEMHFWVZLWKDIRUFHGH[SLUDWRU\YROXPHLQVHFRQG
)(9YDOXHRIRISUHGLFWHG:LWKGUDZDOIURPWUHDWPHQWRI,&6PD\OHDGWR
H[DFHUEDWLRQVLQVRPHSDWLHQWV>*2/'@

%))0',
7KH6SRQVRUKDVGHYHORSHGDSDUWLFOHHQJLQHHULQJWHFKQRORJ\WKDWXWLOL]HVSRURXVSDUWLFOHV
IRUSXOPRQDU\GUXJGHOLYHU\YLD0',V7KLVWHFKQRORJ\LVEDVHGRQVSUD\GULHGSRURXV
SDUWLFOHVFRPSULVHGRIGLVWHDUR\OSKRSKDWLG\OFKROLQHDQGFDOFLXPFKORULGHWKDWDUH
FRVXVSHQGHGZLWKFU\VWDOOLQHDFWLYHGUXJVXEVWDQFHVDQGIRUPXODWHGLQWRVXVSHQVLRQEDVHG
K\GURIOXRURDONDQH+)$0',V,QYLWURDQGLQYLYRWHVWLQJVXJJHVWWKDWWKH6SRQVRU
IRUPXODWLRQVZLOOSURYLGHKLJKO\HIILFLHQWUHSURGXFLEOHDGPLQLVWUDWLRQRIWKHUDSHXWLFVIURP
0',VLQDZLGHGRVLQJUDQJH>+LUVW'HOODPDU\@7KH6SRQVRULVGHYHORSLQJD
EURDGUDQJHRI0',EDVHGLQKDODWLRQSURGXFWVXVLQJLWVSRURXVSDUWLFOHWHFKQRORJ\SODWIRUP



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<2%-(&7,9(6

3ULPDU\2EMHFWLYH
 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQOXQJIXQFWLRQ

6HFRQGDU\2EMHFWLYHV
 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQ&23'H[DFHUEDWLRQV
x 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQV\PSWRPVRI&23'
x 7RDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQTXDOLW\RIOLIH

6DIHW\2EMHFWLYH
 7RDVVHVVWKHVDIHW\RI%))0',DQG))0',

+HDOWKFDUH5HVRXUFH8WLOL]DWLRQ+&582EMHFWLYH
 7RDVVHVVRYHUDOODQG&23'VSHFLILF+&58RI%))0',DQG))0',


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<(1'32,176
7KHSULPDU\HQGSRLQWVWUHDWPHQWFRPSDULVRQVRILQWHUHVWDQGDQDO\VLVWLPHIUDPHVPD\
GLIIHUE\FRXQWU\RUUHJLRQGXHWRORFDOUHJXODWRU\DJHQF\UHTXLUHPHQWV7KH6SRQVRUKDV
GHILQHGWZRGLIIHUHQWUHJLVWUDWLRQDSSURDFKHVLQWKLVVWXG\7KHUHJLVWUDWLRQDSSURDFKHVZLOO
EHFDOOHG86DQG([867KH86DSSURDFKLVIRUFRXQWULHVRUUHJLRQVVXFKDVWKH
8QLWHG6WDWHVZKHUHWKHSULPDU\DQGVHFRQGDU\HQGSRLQWVDUHJHQHUDOO\HYDOXDWHGDWDSRLQW
LQWLPH7KH([86DSSURDFKLVIRUUHJLVWUDWLRQSXUSRVHVLQFRXQWULHVRUUHJLRQVVXFKDV
(XURSHZKHUHWKHSULPDU\DQGVHFRQGDU\HQGSRLQWVDUHJHQHUDOO\HYDOXDWHGRYHUDSHULRGRI
WLPH

3ULPDU\(IILFDF\(QGSRLQW
 0RUQLQJSUHGRVHWURXJK)(9DW:HHNRYHUZHHNV([86

6HFRQGDU\(IILFDF\(QGSRLQWV
 7LPHWRILUVWPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQ
 7LPHWRILUVWFOLQLFDOO\LPSRUWDQWGHWHULRUDWLRQLQ&23'([86
 &KDQJHIURPEDVHOLQHLQDYHUDJHGDLO\UHVFXH9HQWROLQ+)$XVHRYHUZHHNVRYHU
ZHHNV([86
 3HUFHQWDJHRIVXEMHFWVDFKLHYLQJDQ0&,'RIXQLWVRUPRUHLQ6DLQW*HRUJH¶V
5HVSLUDWRU\4XHVWLRQQDLUH6*54WRWDOVFRUHDW:HHNRYHUZHHNV([86
 &KDQJHIURPEDVHOLQHLQWKH([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO
(;$&7WRWDOVFRUHRYHUWKHWUHDWPHQWSHULRG([86
 7UDQVLHQW'\VSQHD,QGH[7',IRFDOVFRUHRYHUZHHNV([86

2WKHU(IILFDF\(QGSRLQWV
8QOHVVDOUHDG\OLVWHGDVDVHFRQGDU\HIILFDF\HQGSRLQWDERYHWKHIROORZLQJZLOOEH
FDWHJRUL]HGDVRWKHUHIILFDF\HQGSRLQWV
 5DWHRIPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQVRYHUWKHWUHDWPHQWSHULRG
 &KDQJHIURPEDVHOLQHLQPRUQLQJSUHGRVHWURXJK)(9IRUFHGYLWDOFDSDFLW\)9&
SHDNH[SLUDWRU\IORZUDWH3()5DQGIRUFHGH[SLUDWRU\IORZEHWZHHQDQGRI
)9&)()RYHUDQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLW
 5DWHRI&23'H[DFHUEDWLRQVRIDQ\VHYHULW\
 7LPHWRILUVW&23'H[DFHUEDWLRQRIDQ\VHYHULW\
 5DWHRIVHYHUH&23'H[DFHUEDWLRQ
 7LPHWRILUVWVHYHUH&23'H[DFHUEDWLRQ
 5DWHRI&23'H[DFHUEDWLRQVWUHDWHGZLWKV\VWHPLFVWHURLGV
 5DWHRI&23'H[DFHUEDWLRQVWUHDWHGZLWKDQWLELRWLFV
 7LPHWRILUVW&23'H[DFHUEDWLRQWUHDWHGZLWKV\VWHPLFVWHURLGV
 7LPHWRILUVW&23'H[DFHUEDWLRQWUHDWHGZLWKDQWLELRWLFV
 7LPHWRILUVWFOLQLFDOO\LPSRUWDQWGHWHULRUDWLRQLQ&23'

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 7LPHWRILUVWVXVWDLQHGFOLQLFDOO\LPSRUWDQWGHWHULRUDWLRQLQ&23'
 7LPHWRWUHDWPHQWIDLOXUHWUHDWPHQWGLVFRQWLQXDWLRQIRUDQ\FDXVHPRGHUDWHRUVHYHUH
H[DFHUEDWLRQRUGHDWK
 7LPHWRGHDWKDOOFDXVH
 7LPHWRGHDWKUHVSLUDWRU\
 &KDQJHIURPEDVHOLQHLQ(;$&7WRWDOVFRUH(YDOXDWLQJ5HVSLUDWRU\6\PSWRPVLQ&23'
(56&23'WRWDOVFRUH567RWDO6FRUHDQGV\PSWRPGRPDLQVFRUHVIRU
EUHDWKOHVVQHVVFRXJKDQGVSXWXPDQGFKHVWV\PSWRPVRYHUZHHNVDQGZHHNVDQG
RYHUHDFKZHHNLQWHUYDORIWKHZHHNWUHDWPHQWSHULRG
 &KDQJHIURPEDVHOLQHLQDYHUDJHGDLO\UHVFXH9HQWROLQ+)$XVHRYHUDQG
ZHHNVDQGRYHUHDFKZHHNLQWHUYDORIWKHZHHNSHULRG
 3HUFHQWDJHRIGD\VZLWK³QRUHVFXH9HQWROLQ+)$XVH´
 7',IRFDOVFRUHRYHUDQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLW
 ,QGLYLGXDOFRPSRQHQWVRIWKH7',IXQFWLRQDOLPSDLUPHQWPDJQLWXGHRIWDVNDQG
PDJQLWXGHRIHIIRUWRYHUDQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQYLVLW
 3HUFHQWDJHRIVXEMHFWVDFKLHYLQJDPLQLPDOFOLQLFDOO\LPSRUWDQWGLIIHUHQFH0&,'
WKUHVKROGRIXQLWRUPRUHRQDYHUDJHRYHUDQGZHHNVLQ7',IRFDOVFRUH
 &KDQJHIURPEDVHOLQHLQ6*54WRWDOVFRUHRYHUDQGZHHNVDQGDWHDFKSRVW
UDQGRPL]DWLRQLQFOLQLFYLVLW
 &KDQJHLQLQGLYLGXDOGRPDLQVRIWKH6*546\PSWRPV$FWLYLW\DQG,PSDFWVRYHU
DQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLW
 3HUFHQWDJHRIVXEMHFWVDFKLHYLQJDQ0&,'RIXQLWVRUPRUHRQDYHUDJHLQ6*54WRWDO
VFRUHRYHUDQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLW
 (XUR4R/(4''LPHQVLRQV4XHVWLRQQDLUH(4'/YDULDEOHVLQFOXGLQJWKH(4
'LQGH[VFRUHWKH(4'9LVXDO$QDORJ6FRUH9$6DQGILYHGLPHQVLRQVLQJOHLWHP
OHYHOUHVSRQVHVDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLW

6DIHW\(QGSRLQWV
 $(VDQG6$(VYLWDOVLJQV%3DQG+5FOLQLFDOODERUDWRU\YDOXHVKHPDWRORJ\DQG
FOLQLFDOFKHPLVWU\DQG(&*V

+HDOWK&DUH5HVRXUFH8WLOL]DWLRQ(QGSRLQWV
x 7KHQXPEHURIGD\VPLVVHGIURPZRUNGXHWR&23'
x 7KHQXPEHURIGD\VWKDWSULPDU\FDUHJLYHUVRIVXEMHFWVPLVVHGIURPZRUNDVDUHVXOWRI
WKHVXEMHFW¶V&23'
x 7KHSHUFHQWDJHRIVXEMHFWVZLWKWHOHSKRQHFDOOVWRKHDOWKFDUHSURYLGHUV
o &DOOVWRDQ\KHDOWKFDUHSURYLGHUSK\VLFLDQRURWKHU
o &DOOVWRSK\VLFLDQ
o &DOOVWRRWKHUKHDOWKFDUHSURYLGHU
x 7KHPHDQQXPEHURIWHOHSKRQHFDOOVWRKHDOWKFDUHSURYLGHUV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
o &DOOVWRDQ\KHDOWKFDUHSURYLGHUSK\VLFLDQRURWKHU
o &DOOVWRSK\VLFLDQ
o &DOOVWRRWKHUKHDOWKFDUHSURYLGHU
x 7KHSHUFHQWDJHRIVXEMHFWVZLWKYLVLWVWRKHDOWKFDUHSURYLGHUV
o 9LVLWVWRDQ\KHDOWKFDUHSURYLGHUJHQHUDOSUDFWLWLRQHU>*3@VSHFLDOLVWRURWKHU
o 9LVLWVWR*3
o 9LVLWVWRVSHFLDOLVW
o 9LVLWVWRRWKHUKHDOWKFDUHSURYLGHU
x 7KHPHDQQXPEHURIYLVLWVWRKHDOWKFDUHSURYLGHUV
o 9LVLWVWRDQ\KHDOWKFDUHSURYLGHU*3VSHFLDOLVWRURWKHU
o 9LVLWVWR*3
o 9LVLWVWRVSHFLDOLVW
o 9LVLWVWRRWKHUKHDOWKFDUHSURYLGHU
x 7KHSHUFHQWDJHRIVXEMHFWVZLWK(PHUJHQF\5RRP(5YLVLWV
x 7KHPHDQQXPEHURIYLVLWVWR(5V
x 7KHSHUFHQWDJHRIVXEMHFWVKRVSLWDOL]HG
x 7KHPHDQQXPEHURIVXEMHFWKRVSLWDOL]DWLRQV
x 7KHPHDQQXPEHURIGD\VLQWKHKRVSLWDO
x 7KHPHDQQXPEHURIKRVSLWDOL]DWLRQVLQZKLFKVXEMHFWVVSHQWVRPHWLPHLQWKH,QWHQVLYH
&DUH8QLW,&8RUWKH&RURQDU\&DUH8QLW&&8
x 7KHSHUFHQWDJHRIVXEMHFWVKRVSLWDOL]HGZLWKVRPHWLPHVSHQWLQWKH,&8RU&&8
x 7KHPHDQQXPEHURIGD\VLQWKHKRVSLWDOZLWKVRPHWLPHVSHQWLQWKH,&8RU&&8
x 7KHPHDQQXPEHURIKRVSLWDOL]DWLRQVLQZKLFKVXEMHFWVVSHQWQRWLPHLQWKH,&8RU&&8
x 7KHSHUFHQWDJHRIVXEMHFWVKRVSLWDOL]HGZLWKQRWLPHVSHQWLQWKH,&8RU&&8
x 7KHPHDQQXPEHURIGD\VLQWKHKRVSLWDOZLWKQRWLPHVSHQWLQWKH,&8RU&&8
x 7KHPHDQQXPEHURIGD\VLQWKH,&8
x 7KHSHUFHQWDJHRIVXEMHFWVLQWKH,&8
x 7KHPHDQQXPEHURIGD\VLQWKH&&8
x 7KHSHUFHQWDJHRIVXEMHFWVLQWKH&&8
x 7KHSHUFHQWDJHRIVXEMHFWVZKRUHTXLUHGDPEXODQFHWUDQVSRUW
x 7KHPHDQQXPEHURIWLPHVDPEXODQFHWUDQVSRUWZDVUHTXLUHG



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

,19(67,*$7,21$/3/$1

2YHUDOO6WXG\'HVLJQDQG3ODQ
7KLVLVDSKDVH,,,UDQGRPL]HGGRXEOHEOLQGSDUDOOHOJURXSPXOWLFHQWHUYDULDEOHOHQJWK
HIILFDF\DQGVDIHW\VWXG\FRPSDULQJ%))0',JDQGJWR))J
0',DGPLQLVWHUHG%,'LQVXEMHFWVZLWKPRGHUDWHWRYHU\VHYHUH&23'(OLJLEOHVXEMHFWV
PXVWKDYHDKLVWRU\RI&23'H[DFHUEDWLRQVDQGUHPDLQV\PSWRPDWLFDVPHDVXUHGE\WKH
&23'$VVHVVPHQW7HVW&$7ZKLOHUHFHLYLQJRQHRUPRUHLQKDOHGPDLQWHQDQFH
EURQFKRGLODWRUV
6XEMHFWVZLOOXQGHUJRDWRZHHN6FUHHQLQJ3HULRG,QLQVWDQFHVZKHUHD&23'
H[DFHUEDWLRQRFFXUVGXULQJWKH6FUHHQLQJ3HULRGWKH6FUHHQLQJ3HULRGPD\EHH[WHQGHGWRD
PD[LPXPRIZHHNVWRDFFRXQWIRUDFRXUVHRIRUDOFRUWLFRVWHURLGVDQGRUDQWLELRWLFVRIXS
WRZHHNVGXUDWLRQIROORZHGE\DZHHNZDVKRXWSHULRG
6XEMHFWVPHHWLQJWKHLQFOXVLRQFULWHULDDQGQRQHRIWKHH[FOXVLRQFULWHULDZLOOEHUDQGRPL]HG
LQWRWKHVWXG\5DQGRPL]DWLRQZLOOEHVWUDWLILHGE\H[DFHUEDWLRQKLVWRU\SRVWEURQFKRGLODWRU
)(9EORRGHRVLQRSKLOFRXQWDQGFRXQWU\(QUROOPHQWZLOOEHWDUJHWHGWRDFKLHYHDUDWLR
IRUWKHEORRGHRVLQRSKLOVWUDWDZLWKWZLFHDVPDQ\UDQGRPL]HGVXEMHFWVLQWKHFHOOVSHU
PPFDWHJRU\
)ROORZLQJUDQGRPL]DWLRQVXEMHFWVZLOOHQWHUWKH5DQGRPL]HG7UHDWPHQW3HULRG7KHVWXG\
LVYDULDEOHLQOHQJWKZLWKDSODQQHGPLQLPXPRIZHHNVDQGDPD[LPXPRIZHHNVRQ
UDQGRPL]HGWUHDWPHQW7KHVWXG\ZLOOHQGZKHQWKHODVWUHPDLQLQJUDQGRPL]HGVXEMHFW
FRPSOHWHVZHHNVRQUDQGRPL]HGWUHDWPHQWRUFRPSOHWHVWKH)LQDO6WXG\9LVLW
1RWH7KH(QGRI6WXG\LVGHILQHGDVWKHGDWHRQZKLFKGDWDDUHFROOHFWHGIRUWKHODVW
VXEMHFW¶V)ROORZXS7HOHSKRQH&DOO
7KHRYHUDOOVWXG\GHVLJQLVLOOXVWUDWHGLQ)LJXUH
)LJXUH
6WXG\'HVLJQ


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7KLVLQWHUQDWLRQDOVWXG\ZLOOEHFRQGXFWHGDWDSSUR[LPDWHO\VLWHVFRQWULEXWLQJ
DSSUR[LPDWHO\WRVXEMHFWVSHUVLWH,WLVSODQQHGWKDWDSSUR[LPDWHO\VXEMHFWVZLOO
EHUDQGRPL]HGWRSURYLGHDSSUR[LPDWHO\VXEMHFWVWRFRPSOHWHWKHVWXG\

5DWLRQDOHRI6WXG\DQG6WXG\'HVLJQ
 2YHUDOO6WXG\
%))0',LVEHLQJIXOO\GHYHORSHGLQRUGHUWRGHPRQVWUDWHDGHTXDWHHYLGHQFHRIHIILFDF\DQG
VDIHW\IRUPDUNHWLQJDSSURYDO
*2/'JXLGHOLQHVDFNQRZOHGJHFRPELQDWLRQWKHUDS\ZLWKDQ,&6DQG/$%$LVPRUH
HIIHFWLYHWKDQWKHLQGLYLGXDOFRPSRQHQWVLQUHGXFLQJH[DFHUEDWLRQVDQGLPSURYLQJOXQJ
IXQFWLRQDQGKHDOWKVWDWXVLQSDWLHQWVZLWKPRGHUDWHWRYHU\VHYHUH&23'>*2/'@
%))0',LVDIL[HGGRVHGXDOFRPELQDWLRQ0',SURGXFWIRUPXODWHGZLWKEXGHVRQLGHDQG
IRUPRWHUROIXPDUDWHIRUXVHLQVXEMHFWVZLWKPRGHUDWHWRYHU\VHYHUH&23'7KLV3KDVH,,,
VWXG\LVLQWHQGHGWRGHPRQVWUDWHWKHHIILFDF\DQGVDIHW\RI%))0',FRPSDUHGZLWK))0',
RQOXQJIXQFWLRQDVZHOODV&23'H[DFHUEDWLRQVVXEMHFWUHSRUWHGV\PSWRPRXWFRPHVDQG
KHDOWKVWDWXV
 3RSXODWLRQ
7KLVVWXG\ZLOOHYDOXDWHDSDWLHQWSRSXODWLRQZLWKPRGHUDWHWRVHYHUH&23'WKDWUHPDLQV
V\PSWRPDWLFGHVSLWHWUHDWPHQWZLWKRQHRUPRUHLQKDOHGPDLQWHQDQFH
PHGLFDWLRQV6\PSWRPDWLFSDWLHQWVZLWK&23'GHPRQVWUDWHGE\D&$7ZKLOH
UHFHLYLQJPDLQWHQDQFHPHGLFDWLRQVDQGKLVWRU\RIH[DFHUEDWLRQZLWKLQWKHODVWPRQWKVZLOO
EHVWXGLHGEHFDXVHSDWLHQWVZLWKWKHVHTXDOLWLHVDUHDWWKHKLJKHVWULVNIRUDQHZH[DFHUEDWLRQ
ZLWKLQWKHVWXG\SHULRG>*2/'@
 &KRLFHRI6WXG\'RVHV
'DWDIURP3KDVH,DQG,,VWXGLHVLQGLFDWHWKDWEXGHVRQLGHDWWZRGRVHVDQGJ%,'
DQGIRUPRWHUROIXPDUDWHDWDGRVHRIJ%,'DUHWKHFRUUHFWGRVHVWRLQYHVWLJDWHLQD
3KDVHSURJUDPLQ&23'
 &KRLFHRI&RPSDUDWRUV&RQWURO*URXSV
&RPSDULQJ%))0',ZLWK))0',ZLOOGHPRQVWUDWHWKHH[SHFWHGFRQWULEXWLRQRIWKH
EXGHVRQLGHFRPSRQHQWRI%))0',LQLPSURYLQJOXQJIXQFWLRQDQGUHGXFLQJ&23'
H[DFHUEDWLRQV,QFOXGLQJWZRGRVHVRI%))0',PD\GHPRQVWUDWHDGRVHRUGHULQJHIIHFWRQ
OXQJIXQFWLRQDQG&23'H[DFHUEDWLRQUHGXFWLRQ
 6WXG\'XUDWLRQ
7KHVWXG\ZDVRULJLQDOO\GHVLJQHGDVDZHHN&23'OXQJIXQFWLRQDQGH[DFHUEDWLRQVWXG\
ZLWKDSDWLHQWSRSXODWLRQHQULFKHGWRLQFUHDVHWKHSUREDELOLW\RIREVHUYLQJ&23'
H[DFHUEDWLRQV6LQFHWKH37SURWRFROZDVLPSOHPHQWHGLQ$SULOUHJXODWRU\
UHTXLUHPHQWVIRUWKHDSSURYDORIGXDODQGWULSOHLQKDODWLRQFRPELQDWLRQSURGXFWVKDYHEHHQ
UHILQHGDQGWKHVWXG\GHVLJQKDVEHHQPRGLILHGDFFRUGLQJO\,QWKHUHYLVHGGHVLJQWKHVWXG\
LQIUDVWUXFWXUHZLOOUHPDLQLQWDFWKRZHYHUWKHVWXG\ZLOOHQGZKHQWKHODVWUHPDLQLQJ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
UDQGRPL]HGVXEMHFWFRPSOHWHVZHHNVRQUDQGRPL]HGWUHDWPHQWRUFRPSOHWHVWKH)LQDO
6WXG\9LVLW7KLVZLOOHQVXUHWKDWWKHVWXG\ZLOOUHPDLQIXOO\SRZHUHGWRGHPRQVWUDWHDOXQJ
IXQFWLRQEHQHILWDVPHDVXUHGE\SUHGRVHWURXJK)(9RIWKHGXDOYVPRQRSURGXFWLH
%))0',YV))0',DW:HHN7KHPRGLILHGVWXG\LVDOVRH[SHFWHGWRGHPRQVWUDWHD
QXPHULFDOWUHQGRQ&23'H[DFHUEDWLRQV


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<3238/$7,216(/(&7,21$1'(/,*,%,/,7<

,QFOXVLRQ&ULWHULD
(DFKVXEMHFWPXVWPHHWWKHIROORZLQJFULWHULDLQUHODWLRQVKLSWR9LVLWXQOHVVRWKHUZLVH
QRWHGWREHHQUROOHGLQWKLVVWXG\
 *LYHWKHLUVLJQHGZULWWHQLQIRUPHGFRQVHQWWRSDUWLFLSDWH
 $UHDWOHDVW\HDUVRIDJHDQGQRROGHUWKDQ\HDUV
 &23''LDJQRVLVVXEMHFWVZLWKDQHVWDEOLVKHGFOLQLFDOKLVWRU\RI&23'DVGHILQHGE\WKH
$PHULFDQ7KRUDFLF6RFLHW\$76(XURSHDQ5HVSLUDWRU\6RFLHW\(56>&HOOL@RU
E\ORFDOO\DSSOLFDEOHJXLGHOLQHVHJ-56*XLGHOLQHV>-56@FKDUDFWHUL]HGE\
SURJUHVVLYHDLUIORZOLPLWDWLRQDVVRFLDWHGZLWKDQDEQRUPDOLQIODPPDWRU\UHVSRQVHRIWKH
OXQJVWRQR[LRXVSDUWLFOHVRUJDVHVSULPDULO\FDXVHGE\FLJDUHWWHVPRNLQJ
 &23'6HYHULW\VXEMHFWVZLWKHVWDEOLVKHG&23'FOLQLFDOKLVWRU\DQGZKRDUH
V\PSWRPDWLF&$7DQGVHYHULW\GHILQHGDQGFDOFXODWHGXVLQJ1+$1(6,,,
UHIHUHQFHHTXDWLRQV>2UUHIHUHQFHQRUPVDSSOLFDEOHWRRWKHUUHJLRQVHJIRU-DSDQXVH
-56UHIHUHQFHHTXDWLRQV-56@DVEHORZ
 $W9LVLW)(9)9&UDWLRPXVWEHDQG)(9PXVWEHSUHGLFWHG
QRUPDOYDOXH
 $W9LVLWSRVWEURQFKRGLODWRU)(9)9&UDWLRRIDQGSRVWEURQFKRGLODWRU
)(9PXVWEHWRSUHGLFWHGQRUPDOYDOXH
 $W9LVLWWKHDYHUDJHRIWKHPLQDQGPLQSUHGRVH)(9DVVHVVPHQWVPXVW
EHSUHGLFWHGQRUPDOYDOXH
 5HTXLUHG&23'0DLQWHQDQFH7KHUDS\
 $OOVXEMHFWVPXVWEHUHFHLYLQJRUPRUHLQKDOHGEURQFKRGLODWRUVDVPDLQWHQDQFH
WKHUDS\IRUWKHPDQDJHPHQWRIWKHLU&23'IRUDWOHDVWZHHNVSULRUWR6FUHHQLQJ
o 1RWHVWKHIROORZLQJDUHLQFOXGHG
 6FKHGXOHG6$%$DQGRUVFKHGXOHG6$0$
 1HEXOL]HG&23'PDLQWHQDQFHPHGLFDWLRQVDVORQJDVWKH\DUHGLVFRQWLQXHGDW
9LVLWDQGDUHQRWXVHGIRUWKHUHPDLQGHURIWKHVWXG\
 +LVWRU\RI([DFHUEDWLRQV6HH6HFWLRQIRU&23'H[DFHUEDWLRQGHILQLWLRQ
x 6XEMHFWVPXVWKDYHDGRFXPHQWHGKLVWRU\RIDWOHDVWPRGHUDWHRUVHYHUH&23'
H[DFHUEDWLRQLQWKHSUHYLRXVPRQWKV
,PSRUWDQW1RWHV
 6XEMHFW¶VYHUEDOUHSRUWVDUHQRWDFFHSWDEOH
 3ULRUXVHRIDQWLELRWLFVDQGRURUDOFRUWLFRVWHURLGVDORQHGRHVQRWTXDOLI\DVD
&23'H[DFHUEDWLRQKLVWRU\XQOHVVWKHXVHZDVDVVRFLDWHGZLWKWUHDWPHQWRI
ZRUVHQLQJ&23'V\PSWRPVRI&23'HJLQFUHDVHGG\VSQHDLQFUHDVHGVSXWXP
YROXPHRUDFKDQJHLQVSXWXPFRORU
x $QWLELRWLFVRUFRUWLFRVWHURLGVXVHGIRUWKHWUHDWPHQWRI85,ZLWKQRORZHU
UHVSLUDWRU\V\PSWRPVGRQRWTXDOLI\IRUWKHWUHDWPHQWRI&23'H[DFHUEDWLRQ
 7REDFFR8VHFXUUHQWRUIRUPHUVPRNHUVZLWKDKLVWRU\RIDWOHDVWSDFN\HDUVRI
FLJDUHWWHVPRNLQJ>1XPEHURISDFN\HDUV QXPEHURIFLJDUHWWHVSHUGD\[

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
QXPEHURI\HDUVVPRNHGHJFLJDUHWWHVSHUGD\IRU\HDUVRUFLJDUHWWHVSHUGD\
IRU\HDUVUHSUHVHQWSDFN\HDUV@
 :LOOLQJDQGLQWKHRSLQLRQRIWKHLQYHVWLJDWRUDEOHWRDGMXVWFXUUHQW&23'WKHUDS\DV
UHTXLUHGE\SURWRFRO
 $JUHHWRRQHRIWKHIROORZLQJWRSUHYHQWSUHJQDQF\
x 1RQFKLOGEHDULQJSRWHQWLDO>LHSK\VLRORJLFDOO\LQFDSDEOHRIEHFRPLQJSUHJQDQW
LQFOXGLQJDQ\IHPDOHZKRLV\HDUVSRVWPHQRSDXVDORUVXUJLFDOO\VWHULOHGHILQHGDV
KDYLQJDELODWHUDORRSKRUHFWRP\K\VWHUHFWRP\RUWXEDOOLJDWLRQ@
1RWHIRUSXUSRVHVRIWKLVSURWRFROPHQRSDXVDOZRPHQDUHGHILQHGDVZRPHQ
\HDUVROGZKRDUHDPHQRUUKHLFIRUFRQVHFXWLYHPRQWKVRUPRUHIROORZLQJ
FHVVDWLRQRIDOOH[RJHQRXVKRUPRQDOWUHDWPHQW
x 3UDFWLFLQJDEVWLQHQFH
x ,IDVH[XDOO\DFWLYHZRPDQRIFKLOGEHDULQJSRWHQWLDODJUHHVWRSUHYHQWSUHJQDQF\E\
XVLQJRQHRIWKHIROORZLQJPHWKRGVRIELUWKFRQWUROIURPWKHGDWHWKH,&)LVVLJQHG
XQWLOZHHNVDIWHUWKHILQDOGRVHRILQYHVWLJDWLRQDOSURGXFWLVWDNHQ
o +RUPRQDOFRQWUDFHSWLRQHJRUDOFRQWUDFHSWLYHFRQWUDFHSWLYHLPSODQWRU
LQMHFWDEOHKRUPRQDOFRQWUDFHSWLYH
o 'RXEOHEDUULHUELUWKFRQWUROHJFRQGRPSOXVLQWUDXWHULQHGHYLFHGLDSKUDJP
SOXVVSHUPLFLGHRUFRQGRPSOXVVSHUPLFLGH
o 0DLQWHQDQFHRIDPRQRJDPRXVUHODWLRQVKLSZLWKDPDOHSDUWQHUZKRKDVEHHQ
VXUJLFDOO\VWHULOL]HGE\YDVHFWRP\
x ,IDZRPDQRIFKLOGEHDULQJSRWHQWLDOKDYHDQHJDWLYHVHUXPSUHJQDQF\WHVW
x 0DOHVXEMHFWVZKRDUHVH[XDOO\DFWLYHPXVWDJUHHWRXVHDGRXEOHEDUULHUPHWKRGRI
FRQWUDFHSWLRQFRQGRPZLWKVSHUPLFLGHIURPWKHILUVWGRVHRIUDQGRPL]HGWUHDWPHQW
XQWLOZHHNVDIWHUWKHLUODVWGRVHDQGPXVWQRWGRQDWHVSHUPGXULQJWKHLUVWXG\
SDUWLFLSDWLRQSHULRG
6FUHHQLQJ/DE7HVWVPXVWEHDFFHSWDEOHWRWKH,QYHVWLJDWRU
6FUHHQLQJ(&*PXVWEHDFFHSWDEOHWRWKH,QYHVWLJDWRU
&KHVW[UD\RUFRPSXWHGWRPRJUDSK\&7VFDQRIWKHFKHVWOXQJVPXVWEHDFFHSWDEOHWR
WKH,QYHVWLJDWRU$FKHVW[UD\PXVWEHFRQGXFWHGLIWKHPRVWUHFHQWFKHVW[UD\RU&7
VFDQLVPRUHWKDQPRQWKVROGDW9LVLWH[FHSWLQFRXQWULHVZLWKUHVWULFWLYHUDGLRORJ\
DVVHVVPHQWSUDFWLFHZKHUHRQO\VXEMHFWVZKRKDYHKDGDFKHVW[UD\RU&7VFDQLQWKHODVW
PRQWKVDUHDOORZHGWREHHQUROOHG$OWHUQDWLYHO\LQWKHVHFRXQWULHVDQ05,PD\EH
XVHGLQVWHDGRID&7VFDQRUFKHVW[UD\DVSHUORFDOSUDFWLFHDVVHVVPHQW
&RPSOLDQFHZLOOLQJWRUHPDLQDWVWXG\FHQWHUDVUHTXLUHGSHUSURWRFROWRFRPSOHWHDOO
VWXG\YLVLWDVVHVVPHQWV
'HPRQVWUDWHFRUUHFW0',DGPLQLVWUDWLRQWHFKQLTXH

([FOXVLRQ&ULWHULD
6XEMHFWVZKRPHHWDQ\RIWKHIROORZLQJFULWHULDLQUHODWLRQVKLSWR9LVLWZLOOEHH[FOXGHG
IURPWKHVWXG\XQOHVVRWKHUZLVHVWDWHG
 5HVSLUDWRU\
D &XUUHQWGLDJQRVLVRIDVWKPDLQWKHRSLQLRQRIWKH,QYHVWLJDWRU
E &23'GXHWRĮ$QWLWU\SVLQ'HILFLHQF\

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
F 6OHHSDSQHDWKDWLQWKHRSLQLRQRIWKH,QYHVWLJDWRULVXQFRQWUROOHG
G 2WKHU5HVSLUDWRU\'LVRUGHUVNQRZQDFWLYHWXEHUFXORVLVOXQJFDQFHUF\VWLFILEURVLV
VLJQLILFDQWEURQFKLHFWDVLVKLJKUHVROXWLRQ&7HYLGHQFHRIEURQFKLHFWDVLVWKDWFDXVHV
UHSHDWHGDFXWHH[DFHUEDWLRQVVDUFRLGRVLVLGLRSDWKLFLQWHUVWLWLDOSXOPRQDU\ILEURVLV
SULPDU\SXOPRQDU\K\SHUWHQVLRQRUSXOPRQDU\WKURPERHPEROLFGLVHDVH
1RWHDOOHUJLFUKLQLWLVLVQRWH[FOXVLRQDU\
H 3XOPRQDU\UHVHFWLRQRU/XQJ9ROXPH5HGXFWLRQ6XUJHU\GXULQJWKHSDVWPRQWKV
>LHOREHFWRP\EURQFKRVFRSLFOXQJYROXPHUHGXFWLRQHQGREURQFKLDOEORFNHUV
DLUZD\E\SDVVHQGREURQFKLDOYDOYHVWKHUPDOYDSRUDEODWLRQELRORJLFDOVHDODQWVDQG
DLUZD\LPSODQWV@
I +RVSLWDOL]HGGXHWRRUKDVSRRUO\FRQWUROOHG&23'ZLWKLQZHHNVSULRUWR9LVLW
J /RZHUUHVSLUDWRU\WUDFWLQIHFWLRQVWKDWUHTXLUHGDQWLELRWLFVZLWKLQZHHNVSULRUWR
9LVLW
K 7UHDWPHQWZLWKV\VWHPLFFRUWLFRVWHURLGVDQGRUDQWLELRWLFVIRUFULWHULDIRUJ
DERYHZLWKLQZHHNVSULRUWR9LVLW
L 3QHXPRQLDQRWFOLQLFDOO\UHVROYHGZLWKLQGD\V
M 8SSHUUHVSLUDWRU\WUDFWLQIHFWLRQQRWUHVROYHGDWOHDVWGD\V
N &OLQLFDOO\VLJQLILFDQWFKHVW[UD\IURQWDODQGODWHUDOZLWKVXVSLFLRQRISQHXPRQLDRU
RWKHUFRQGLWLRQDEQRUPDOLW\WKDWZLOOUHTXLUHDGGLWLRQDOLQYHVWLJDWLRQWUHDWPHQWRUSXW
WKHVXEMHFWDWULVNEHFDXVHRISDUWLFLSDWLRQLQWKHVWXG\
O ,PPXQHGHILFLHQF\DQGRUVHYHUHQHXURORJLFDOGLVRUGHUVDIIHFWLQJFRQWURORIWKHXSSHU
DLUZD\RURWKHUULVNIDFWRUVWKDWSODFHWKHVXEMHFWDWVXEVWDQWLDOULVNRISQHXPRQLDLQ
WKHRSLQLRQRIWKH,QYHVWLJDWRU
P /RQJWHUPR[\JHQWKHUDS\KRXUVDGD\1RWHDVQHHGHGR[\JHQXVHLVQRW
H[FOXVLRQDU\
Q $Q\QRQLQYDVLYHSRVLWLYHSUHVVXUHYHQWLODWLRQGHYLFH1RWH6XEMHFWVXVLQJ
FRQWLQXRXVSRVLWLYHDLUZD\SUHVVXUHRUELOHYHOSRVLWLYHDLUZD\SUHVVXUHIRU6OHHS
$SQHD6\QGURPHDUHDOORZHGLQWKHVWXG\LIQRWXVHGIRUYHQWLODWRU\VXSSRUW
R &KDQJHLQVPRNLQJVWDWXVLHVWDUWRUVWRSVPRNLQJRULQLWLDWLRQRIDVPRNLQJ
FHVVDWLRQSURJUDPZLWKLQZHHNVDQGSULRUWR5DQGRPL]DWLRQ
S $FXWHSKDVHRIDSXOPRQDU\UHKDELOLWDWLRQSURJUDPZLWKLQZHHNVRUVFKHGXOHGDFXWH
SKDVHRIDSXOPRQDU\UHKDELOLWDWLRQSURJUDPGXULQJWKHVWXG\7KHVHVXEMHFWVZLOOEH
DOORZHGWRUHVFUHHQDIWHUFRPSOHWLRQRIWKHDFXWHSKDVHRISXOPRQDU\UHKDELOLWDWLRQ
1RWHVXEMHFWVZKRDUHLQWKHPDLQWHQDQFHSKDVHRIDSXOPRQDU\UHKDELOLWDWLRQ
SURJUDPDUHQRWWREHH[FOXGHG
T ,QLWLDWHGRUDOWHUHGWKHGRVHUHJLPHQRILQWUDQDVDOFRUWLFRVWHURLGVLQWUDQDVDO
DQWLKLVWDPLQHVRUDFRPELQDWLRQWKHUHRIZLWKLQGD\VRUSULRUWR5DQGRPL]DWLRQ
U 8QDEOHWRZLWKKROGVKRUWDFWLQJEURQFKRGLODWRUVIRUKRXUVSULRUWRVSLURPHWU\
WHVWLQJDWHDFKVWXG\YLVLW
V 8VHRIVSDFHUGHYLFH
W 6SLURPHWU\3HUIRUPDQFHVXEMHFWVZKR
x $FFHSWDELOLW\FDQQRWSHUIRUPDFFHSWDEOHVSLURPHWU\LHPHHW$76(56
DFFHSWDELOLW\FULWHULD
x 5HSHDWDELOLW\FDQQRWSHUIRUPWHFKQLFDOO\DFFHSWDEOHVSLURPHWU\ZLWK
DFFHSWDEOHIORZYROXPHFXUYHVZLWKPHHWLQJ$76UHSHDWDELOLW\FULWHULDIRU
)(9GXULQJDWOHDVWRQHRIWKHSUHEURQFKRGLODWRUDVVHVVPHQWVDW9LVLW
PLQXWHRUPLQXWHDQGDWWKHSRVWEURQFKRGLODWRUDVVHVVPHQWDW9LVLW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
1RWH6XEMHFWVZKRKDYHPHWDOORIWKHLQFOXVLRQFULWHULDEXWKDYHIDLOHGWRPHHW
VSLURPHWU\DFFHSWDELOLW\RUUHSHDWDELOLW\FULWHULDDW9LVLWPD\FRQWLQXHWR9LVLW
3URYLGHGWKHVHVXEMHFWVPHHWDOOVSLURPHWU\FULWHULDDW9LVLWLQFOXGLQJDFFHSWDELOLW\
DQGUHSHDWDELOLW\WKH\DUHHOLJLEOHWRFRQWLQXHWR9LVLW6XEMHFWVZKRIDLOWRPHHW
DFFHSWDELOLW\DQGUHSHDWDELOLW\FULWHULDDW9LVLWPXVWEHFRQVLGHUHGDVVFUHHQIDLOHG
x )(9%DVHOLQH6WDELOLW\FDQQRWPHHWSURWRFROVSHFLILHGEDVHOLQHVWDELOLW\
FULWHULD)(9EDVHOLQHVWDELOLW\LVGHILQHGDVWKHDYHUDJHRIWKHPLQXWHDQG
PLQXWHSUHGRVH)(9DVVHVVPHQWVDW9LVLWEHLQJZLWKLQRUP/RI
WKHPHDQRIWKHSUHEURQFKRGLODWRU)(9DVVHVVPHQWVREWDLQHGDW9LVLW
&DUGLRYDVFXODU
D 8QVWDEOHLVFKHPLFKHDUWGLVHDVHOHIWYHQWULFXODUIDLOXUHRUGRFXPHQWHGP\RFDUGLDO
LQIDUFWLRQZLWKLQPRQWKV
E $FXWHFRURQDU\V\QGURPHRUXQGHUJRQHSHUFXWDQHRXVFRURQDU\LQWHUYHQWLRQ37&$
RUFRURQDU\DUWHU\E\SDVVJUDIW&$%*ZLWKLQPRQWKV
F &RQJHVWLYHKHDUWIDLOXUH&+)1<+$&ODVV,,,DQG,9
G &OLQLFDOO\VLJQLILFDQWDEQRUPDO(&*ILQGLQJVDVGHILQHGEHORZRUGHHPHGE\WKH
,QYHVWLJDWRUEXWQRWOLPLWHGWR
 &RQGXFWLRQDEQRUPDOLWLHV>LHOHIWEXQGOHEUDQFKEORFN:ROII3DUNLQVRQ:KLWH
V\QGURPHRUHYLGHQFHRI0RELW]7\SH,,VHFRQGGHJUHHRUWKLUGGHJUHH
DWULRYHQWULFXODUEORFNXQOHVVSDFHPDNHURUGHILEULOODWRUKDVEHHQLQVHUWHG@
 $UUK\WKPLDVLHDWULDOILEULOODWLRQ$)ZLWKLUUHJXODUYHQWULFXODUUHVSRQVHDWULDO
IOXWWHUYHQWULFXODUWDFK\FDUGLD
1RWH&OLQLFDOO\VWDEOH$)WKDWLVDSSURSULDWHO\WUHDWHGZLWKDQWLFRDJXODWLRQDQG
UDWHFRQWUROOHGWKHUDSLHVLHVHOHFWLYHȕEORFNHUFDOFLXPFKDQQHOEORFNHU
GLJR[LQDEODWLRQWKHUDS\IRUDWOHDVWPRQWKVLVDOORZHG$WSUHUDQGRPL]DWLRQ
YLVLWVUHVWLQJYHQWULFXODUUDWHPXVWEHEHDWVSHUPLQXWHESP
 &RUUHFWHG47LQWHUYDOIRUKHDUWUDWHXVLQJ)ULGHULFLD¶VIRUPXOD47F)
PLOOLVHFRQGVPVHFZLWK456PVHFRUPVHFZLWK456
PVHF
 9HQWULFXODUUDWHESP
 &OLQLFDOVLJQLILFDQW677ZDYHDEQRUPDOLWLHVDVGHHPHGE\,QYHVWLJDWRU
1RWHQRQVSHFLILF677ZDYHDEQRUPDOLWLHVQRWGHHPHGFOLQLFDOO\VLJQLILFDQWDUH
DOORZHG
H 8QFRQWUROOHGK\SHUWHQVLRQGHVSLWHSKDUPDFRORJLFDOWUHDWPHQWDVGHHPHGE\
,QYHVWLJDWRU
 1HXURORJLFDO
D 6HL]XUHGLVRUGHU1RWHVXEMHFWVZLWKVHL]XUHVWUHDWHGZLWKDQWLFRQYXOVDQWPHGLFDWLRQ
IRUPRQWKVZLWKQRVHL]XUHHYHQWVDUHHOLJLEOH
E 6HOHFWLYHVHURWRQLQUHXSWDNHLQKLELWRUV665,VRUVHURWRQLQQRUHSLQHSKULQHUHXSWDNH
LQKLELWRUV615,VZLWKXQVWDEOHGRVLQJIRUZHHNVRUDOWHUHGDWDQ\SRLQWGXULQJ
WKH6FUHHQLQJ3HULRGRUH[FHHGVPD[LPXPODEHOHGGRVH
F &HUHEURYDVFXODUDFFLGHQW&9$ZLWKLQPRQWKV
 5HQDO
D 8QGHUO\LQJVLJQLILFDQWUHQDOGLVHDVHWKDWPD\SODFHVXEMHFWDWULVNDVGHHPHGE\
,QYHVWLJDWRU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 (QGRFULQH
D 8QFRQWUROOHGK\SRRUK\SHUWK\URLGLVPK\SRNDOHPLDRUK\SHUDGUHQHUJLFVWDWH
E 8QFRQWUROOHG7\SH,RU,,GLDEHWHV
 /LYHU
D /LYHUIXQFWLRQWHVWVGHILQHGDV$67$/7RUWRWDOELOLUXELQWLPHVXSSHUOLPLWRI
QRUPDODW9LVLWDQGRQUHSHDWWHVWLQJSULRUWR9LVLW
1RWH&KURQLFVWDEOH+HSDWLWLV%DQG&LVDFFHSWDEOH
 (\H
D 1DUURZDQJOHJODXFRPDQRWDGHTXDWHO\WUHDWHGDVGHHPHGE\WKH,QYHVWLJDWRU$OO
PHGLFDWLRQVDSSURYHGIRUFRQWURORILQWUDRFXODUSUHVVXUHVDUHDOORZHGLQFOXGLQJ
WRSLFDORSKWKDOPLFQRQVHOHFWLYHEHWDEORFNHUVVXFKDVEHWD[ROROFDUWHRORO
OHYREXQROROPHWLSUDQRORODQGWLPRORODQGSURVWDJODQGLQDQDORJXHV
 &DQFHU
D 1RWLQFRPSOHWHUHPLVVLRQIRUDWOHDVWILYH\HDUV
1RWHVXEMHFWVZLWKVTXDPRXVDQGEDVDOFHOOFDUFLQRPDVRIWKHVNLQRUORFDOL]HG
SURVWDWHFDQFHUDUHHOLJLEOHLILQWKHRSLQLRQRIWKH,QYHVWLJDWRUWKHFRQGLWLRQKDV
EHHQDGHTXDWHO\ZRUNHGXSLVFOLQLFDOO\FRQWUROOHGDQGWKHVXEMHFW¶VSDUWLFLSDWLRQLQ
WKHVWXG\ZRXOGQRWUHSUHVHQWDVDIHW\FRQFHUQ
 :RPHQZKRDUHSUHJQDQWRUODFWDWLQJSODQQLQJWREHFRPHSUHJQDQWGXULQJWKHVWXG\
FRXUVHRURIFKLOGEHDULQJSRWHQWLDOQRWXVLQJDFFHSWDEOHFRQWUDFHSWLRQPHWKRG
+\SHUVHQVLWLYLW\WREDJRQLVWVRUFRUWLFRVWHURLGVRUDQ\FRPSRQHQWRIWKH0',
6LJQLILFDQWO\DEXVHDOFRKRORUGUXJV
8QDEOHWRDEVWDLQIURPSURWRFROGHILQHGSURKLELWHGPHGLFDWLRQVGXULQJ6FUHHQLQJDQG
5DQGRPL]HG7UHDWPHQWSHULRGUHIHUWR6HFWLRQ
8VLQJDQ\KHUEDOSURGXFWVHLWKHUE\LQKDODWLRQRUQHEXOL]DWLRQZLWKLQZHHNVDQGGRHV
QRWDJUHHWRVWRSIRUWKHGXUDWLRQRIWKHVWXG\
5HFHLYHGDOLYHDWWHQXDWHGYDFFLQDWLRQZLWKLQGD\V
8QDEOHWRFRPSO\ZLWKVWXG\SURFHGXUHVLQFOXGLQJQRQFRPSOLDQFHZLWKGLDU\
FRPSOHWLRQLHVXEMHFWFRPSOHWLRQRIGLDU\DVVHVVPHQWVLQWKHODVWGD\V
SUHFHGLQJ9LVLW
6WXG\,QYHVWLJDWRUV6XELQYHVWLJDWRUVDQG&RRUGLQDWRUVDQGWKHLUHPSOR\HHVRU
LPPHGLDWHIDPLO\PHPEHUV
+RVSLWDOL]HGIRUSV\FKLDWULFGLVRUGHURUDWWHPSWHGVXLFLGHZLWKLQRQH\HDU
+LVWRU\RISV\FKLDWULFGLVHDVHLQWHOOHFWXDOGHILFLHQF\SRRUPRWLYDWLRQRURWKHU
FRQGLWLRQVOLPLWLQJLQIRUPHGFRQVHQWYDOLGLW\
7UHDWPHQWZLWKLQYHVWLJDWLRQDOVWXG\GUXJRUGHYLFHLQDQRWKHUFOLQLFDOVWXG\ZLWKLQWKH
ODVWGD\VRUILYHKDOIOLYHVZKLFKHYHULVORQJHU
1RWHREVHUYDWLRQDOVWXGLHVLHVWXGLHVQRWUHTXLULQJFKDQJHWRPHGLFDWLRQRUDQ
DGGLWLRQDOLQWHUYHQWLRQDUHDOORZHG
3UHYLRXVO\UDQGRPL]HGLQDQ\37RU37VWXG\FRQGXFWHGRUVSRQVRUHGE\WKH
6SRQVRU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

6XEMHFW,GHQWLILFDWLRQ
$OOVXEMHFWVZKRXQGHUJRVFUHHQLQJSURFHGXUHVZLOOEHDVVLJQHGDXQLTXHVFUHHQLQJ
LGHQWLILFDWLRQQXPEHUDW9LVLW2QO\VXEMHFWVFRQWLQXLQJWRPHHWLQFOXVLRQH[FOXVLRQ
FULWHULDDW9LVLWZLOOEHDVVLJQHGDXQLTXHVXEMHFWUDQGRPL]DWLRQQXPEHU5DQGRPL]DWLRQ
ZLOOEHFHQWUDOL]HGZLWKDQ,QWHUDFWLYH:HE5HVSRQVH6\VWHP,:56

3ULRU&RQFRPLWDQWDQG3URKLELWHG0HGLFDWLRQV
 3ULRU0HGLFDWLRQV
$OOSUHVFULSWLRQDQGRYHUWKHFRXQWHU27&PHGLFDWLRQVDVZHOODVDQ\KHUEDORUYLWDPLQ
VXSSOHPHQWVWDNHQE\WKHVXEMHFWZLWKLQGD\VRI9LVLWVKRXOGEHUHFRUGHGRQWKH
3ULRU&RQFRPLWDQW0HGLFDWLRQVHOHFWURQLF&DVH5HSRUW)RUPH&5)LQGLFDWLRQWRWDOGDLO\
GRVHDQGGDWHVRIGUXJDGPLQLVWUDWLRQVKRXOGEHFDSWXUHGWRWKHEHVWRIWKHVXEMHFW¶VDQG
VLWH¶VDELOLW\
 &RQFRPLWDQW0HGLFDWLRQVDQG9DFFLQDWLRQV
$Q\FXUUHQWRQJRLQJPHGLFDWLRQVLQFOXGLQJ27&GUXJVDQGKHUEDOVXSSOHPHQWVZLOOEH
DOORZHGSURYLGHGWKH\DUHQRWSURKLELWHGE\WKHSURWRFROVHH6HFWLRQ$OO
FRQFRPLWDQWPHGLFDWLRQVWDNHQGXULQJWKHVWXG\ZLOOEHUHFRUGHGRQWKH&RQFRPLWDQW
0HGLFDWLRQVH&5)SDJHZLWKLQGLFDWLRQWRWDOGDLO\GRVHDQGGDWHVRIGUXJDGPLQLVWUDWLRQ
$Q\DGGLWLRQVGHOHWLRQVRUFKDQJHVLQWKHGRVHRIWKHVHPHGLFDWLRQVZKLOHLQWKHVWXG\
VKRXOGEHHQWHUHGLQWKHH&5)6XEMHFWVVKRXOGDOVREHLQVWUXFWHGWRFRQWDFWWKH,QYHVWLJDWRU
LIWKH\GHYHORSDQ\LOOQHVVHVHVSHFLDOO\WKRVHUHTXLULQJPHGLFLQDOLQWHUYHQWLRQ
 $OORZHG0HGLFDWLRQVWR7UHDWD&23'([DFHUEDWLRQ
0HGLFDWLRQVWRWUHDWD&23'H[DFHUEDWLRQVKRXOGQRWEHXVHGIRUPRUHWKDQGD\V5HFHQW
GDWDKDYHVXJJHVWHGWKDWWUHDWPHQWZLWKV\VWHPLFVWHURLGVIRUVKRUWHUSHULRGVRIWLPHUHVXOWV
LQVLPLODURXWFRPHVZLWKOHVVV\VWHPLFVWHURLGH[SRVXUH7KHUHIRUHLWLVUHFRPPHQGHGWKDW
VXEMHFWVEHWUHDWHGLQLWLDOO\ZLWKDGD\FRXUVHRIVWHURLGV/HXSSL*2/'DQG
VKRXOGQRWH[FHHGGD\V'XULQJD&23'H[DFHUEDWLRQLWLVLPSRUWDQWIRUVXEMHFWVWREH
WUHDWHGDVGHHPHGDSSURSULDWHE\WKHWUHDWLQJKHDOWKFDUHSURYLGHU+RZHYHUDOO
VXSSOHPHQWDOPHGLFDWLRQXVHGWRWUHDWWKH&23'H[DFHUEDWLRQVKRXOGEHGLVFRQWLQXHGDV
VRRQDVLWLVFRQVLGHUHGVDIHE\WKH,QYHVWLJDWRUDQGVXEMHFWVVKRXOGUHWXUQWRWKHLUSUH
H[DFHUEDWLRQPHGLFDWLRQUHJLPHQDVVRRQDVSUDFWLFDO
3QHXPRFRFFDODQG$QQXDO,QIOXHQ]D9DFFLQDWLRQ
$OOVXEMHFWVVKRXOGEHYDFFLQDWHGZLWKSQHXPRFRFFDODQGDQQXDOLQIOXHQ]DYDFFLQHSHUORFDO
SROLFLHVDYDLODELOLW\DQGDIIRUGDELOLW\>*2/'@)RUVXEMHFWVSUHYLRXVO\YDFFLQDWHG
ZLWKSQHXPRFRFFDOYDFFLQHWKH,QYHVWLJDWRUVKRXOGDVVHVVZKHWKHUDERRVWHUYDFFLQDWLRQLV
UHTXLUHG,IDVXEMHFWKDVHJJLQWROHUDQFHRUUHIXVHVWREHYDFFLQDWHGWKHYDFFLQDWLRQPD\EH
RPLWWHG3QHXPRFRFFDODQGRUDQQXDOLQIOXHQ]DYDFFLQHFDQEHJLYHQDW9LVLWRUDWDQ\
RWKHUYLVLWWKURXJKRXWWKHVWXG\DWWKHGLVFUHWLRQRIWKH,QYHVWLJDWRUKRZHYHUDGPLQLVWUDWLRQ
VKRXOGRFFXUDIWHUREWDLQLQJDOOUHTXLVLWHVSLURPHWU\DVVHVVPHQWVIRUWKDWVSHFLILFWHVWGD\
7KHUHVKRXOGEHDWOHDVWGD\VEHWZHHQYDFFLQDWLRQDQGVXEVHTXHQWVSLURPHWU\DVVHVVPHQWV
 3URKLELWHG0HGLFDWLRQV
6XEMHFWVPHHWLQJHQWU\FULWHULDDW9LVLWZKRDUHEHLQJWUHDWHGZLWKDQ\RIWKHPHGLFDWLRQV
OLVWHGLQ7DEOHQHHGWRGLVFRQWLQXHWKHVHPHGLFDWLRQVDQGREVHUYHWKHPLQLPXPZDVKRXW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
UHTXLUHPHQWEHIRUHUHWXUQLQJIRU9LVLW7KHVHPHGLFDWLRQVDUHSURKLELWHGWKURXJKRXWWKH
FRXUVHRIVWXG\6XEMHFWVUHTXLULQJXVHRIDQ\RIWKHOLVWHGPHGLFDWLRQVVKRXOGEH
GLVFRQWLQXHGIURPUDQGRPL]HGWUHDWPHQWEXWHQFRXUDJHGWRFRQWLQXHLQWKHVWXG\DQG
FRPSOHWHDOOVWXG\YLVLWV
7DEOH
3URKLELWHG&23'0HGLFDWLRQVDQG5HTXLUHG:DVKRXW3HULRGV3ULRUWR9LVLW
&ODVVRI0HGLFDWLRQ
0LQLPXP:DVKRXW3HULRG3ULRUWR9LVLW
6$0$
KRXUV
/$0$V
GD\VDFOLGLQLXPJO\FRS\UURQLXPXPHFOLGLQLXP
GD\VWLRWURSLXP
/$%$VLQKDOHG
GD\VVDOPHWHUROIRUPRWHUROYLODQWHURO
GD\VLQGDFDWHURORORGDWHURO
)L[HGFRPELQDWLRQVRI/$%$/$0$
GD\VXPHFOLGLQLXPYLODQWHURO
GD\VJO\FRS\UURQLXPLQGDFDWHURO
WLRWURSLXPRORGDWHURO
)L[HGFRPELQDWLRQVRI/$%$,&6
GD\V
)L[HGFRPELQDWLRQVRI6$%$VDQG6$0$V
KRXUV
6$%$VD
KRXUV
2UDOȕDJRQLVWV
GD\V
7KHRSK\OOLQHWRWDOGDLO\GRVH!PJGD\E
GD\V
&23' FKURQLFREVWUXFWLYHSXOPRQDU\GLVHDVH,&6 LQKDOHGFRUWLFRVWHURLG/$%$ ORQJDFWLQJȕDJRQLVW/$0$ ORQJDFWLQJ
PXVFDULQLFDQWDJRQLVW6$%$ VKRUWDFWLQJȕDJRQLVW6$0$ 6KRUWDFWLQJPXVFDULQLFDQWDJRQLVWV
D'LVFRQWLQXHDQGXVHRQO\VSRQVRUSURYLGHGUHVFXH9HQWROLQ+)$WKURXJKRXWWKHVWXG\
 E7KHRSK\OOLQHPJGD\LVSHUPLWWHGSURYLGHGWKHVXEMHFWKDVEHHQRQDVWDEOHGRVHRIWKHUDS\IRUDWOHDVWZHHNVSULRUWR9LVLW



6XEMHFWVZLOODGMXVWWKHLUPDLQWHQDQFHWKHUDS\IRU&23'DW9LVLWIRUWKHGXUDWLRQRIWKH
6FUHHQLQJDQG7UHDWPHQW3HULRGVDVIROORZV
 6XEMHFWVZKRDUHUHFHLYLQJDQ,&6/$%$ZLOOGLVFRQWLQXHWKH,&6/$%$EXWFRQWLQXH
WKH,&6FRPSRQHQWIRUWKHUHPDLQGHURIWKH6FUHHQLQJ3HULRG
 6XEMHFWVWUHDWHGZLWKDQ,&6DVSDUWRIWKHLULQKDOHGPDLQWHQDQFHWKHUDS\ZLOOFRQWLQXH
WKHLU,&6IRUWKHUHPDLQGHURIWKH6FUHHQLQJ3HULRG
 'LVFRQWLQXHDOORWKHU&23'PDLQWHQDQFH³DVQHHGHG´PHGLFDWLRQVDVLQGLFDWHGLQ7DEOH

 ,QLWLDWH6SRQVRUSURYLGHG9HQWROLQ+)$WREHDGPLQLVWHUHGDVQHHGHGXSWRLQKDODWLRQV
SHUGD\IRUFRQWURORI&23'V\PSWRPV
 6XEMHFWVUHFHLYLQJSKRVSKRGLHVWHUDVHLQKLELWRUVHJURIOXPLODVWDWVWDEOHGRVHVIRUDW
OHDVWZHHNVSULRUWR9LVLWPD\FRQWLQXHRQWKHVHPHGLFDWLRQVWKURXJKRXWWKH
6FUHHQLQJDQG5DQGRPL]HG7UHDWPHQWSHULRGV
,WLVSUHIHUUHGWKDW9HQWROLQ+)$EH86VRXUFHGSURGXFWV,QFDVHVZKHUHLWLVQRWSRVVLEOH
IRUWKH86VRXUFHGSURGXFWWREHXVHGDORFDOO\DYDLODEOHSURGXFWZLOOEHSURYLGHGE\WKH
6SRQVRU
6XEMHFWVPHHWLQJHQWU\FULWHULDDW9LVLWZKRDUHEHLQJWUHDWHGZLWKDQ\RIWKHPHGLFDWLRQV
OLVWHGLQ7DEOHQHHGWRGLVFRQWLQXHWKHVHPHGLFDWLRQVDQGREVHUYHWKHPLQLPXPZDVKRXW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
UHTXLUHPHQWEHIRUHUHWXUQLQJIRU9LVLW7KHVHPHGLFDWLRQVKRZHYHUDUHSHUPLWWHGGXULQJ
WKH5DQGRPL]HG7UHDWPHQW3HULRGRQO\LIWKHVXEMHFWUHTXLUHVWKHPIRUDQ\PHGLFDO
FRQGLWLRQ
7DEOH
3URKLELWHG&RUWLFRVWHURLGVDQG5HTXLUHG:DVKRXW3HULRGV3ULRUWR9LVLW
5RXWHRI$GPLQLVWUDWLRQ
0LQLPXP:DVKRXW3HULRG3ULRUWR9LVLW
'HSRWLQWUDDUWLFXODUDQGLQWUDRFXODUD
ZHHNV
2UDO,9,0D
ZHHNV
,9 LQWUDYHQRXV,0 LQWUDPXVFXODU
D$IWHUUDQGRPL]DWLRQVXEMHFWVPD\EHWUHDWHGIRUDQ\UHDVRQZLWKV\VWHPLFFRUWLFRVWHURLGVZKHQUHTXLUHG

1RWH6XEMHFWVZKRDUHVWHURLGGHSHQGHQWDQGPDLQWDLQHGRQDQHTXLYDOHQWRIXSWRPJRI
SUHGQLVRQHSHUGD\RUXSWRPJHYHU\RWKHUGD\IRUDWOHDVWPRQWKVSULRUWR9LVLWDUH
HOLJLEOHIRUHQUROOPHQW7KHRUDOVWHURLGGRVHQHHGVWRUHPDLQFRQVLVWHQWQRWH[FHHGLQJWKLV
WKUHVKROGIRUWKHWZRZHHNVSULRUWR9LVLWLQRUGHUWREHUDQGRPL]HG
6XEMHFWVPHHWLQJHQWU\FULWHULDDW9LVLWZKRDUHEHLQJWUHDWHGZLWKDQ\RIWKHPHGLFDWLRQV
OLVWHGLQ7DEOHQHHGWRGLVFRQWLQXHWKHVHPHGLFDWLRQVDQGREVHUYHWKHPLQLPXPZDVKRXW
UHTXLUHPHQWEHIRUHUHWXUQLQJIRU9LVLW

7DEOH
2WKHU3URKLELWHG5HVSLUDWRU\DQGRU1DVDO0HGLFDWLRQVDQG5HTXLUHG:DVKRXW
3HULRGV3ULRUWR9LVLW
&ODVVRI0HGLFDWLRQ
0LQLPXP:DVKRXW3HULRG3ULRUWR9LVLW
/HXNRWULHQHDQWDJRQLVWVHJ]DILUOXNDVW
PRQWHOXNDVWDQG]LOXHWRQ
GD\V
&URPRJO\FDWH
GD\V
1HGRFURPLO
GD\V
.HWRWLIHQD
GD\V
D.HWRWLIHQH\HGURSVDUHDOORZHG

6XEMHFWVUHTXLULQJPHGLFDWLRQVSUHVHQWHGLQ7DEOHDUHSURKLELWHGIURPSDUWLFLSDWLQJLQ
WKLVVWXG\6XEMHFWVZKRUHFHQWO\GLVFRQWLQXHGXVHRIWKHVHPHGLFDWLRQVPD\EHFRQVLGHUHG
IRUVWXG\HQUROOPHQWSURYLGLQJWKH\KDYHPHWWKHPLQLPXP:DVKRXW3HULRGSULRUWR9LVLW
7KHVHPHGLFDWLRQVDUHSURKLELWHGWKURXJKRXWWKHFRXUVHRIWKHVWXG\DQGVKRXOGDVXEMHFW
UHTXLUHXVHRIDQ\RIWKHOLVWHGPHGLFDWLRQVWKHLQYHVWLJDWRUVKRXOGHYDOXDWHWKH
DSSURSULDWHQHVVRIFRQWLQXLQJWKHVXEMHFWLQWKHVWXG\



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH
1RQ&23'DQG1RQ5HVSLUDWRU\3URKLELWHG0HGLFDWLRQV
3URKLELWHG0HGLFDWLRQV
0LQLPXP&HVVDWLRQ3HULRG3ULRUWR9LVLW
$Q\GUXJZLWKSRWHQWLDOWRVLJQLILFDQWO\SURORQJWKH
47LQWHUYDOD
GD\VRUKDOIOLYHVZKLFKHYHULVORQJHU
2WKHULQYHVWLJDWLRQDOGUXJV
GD\VRUKDOIOLYHVZKLFKHYHULVORQJHU
1RQVHOHFWLYHȕEORFNLQJDJHQWVH[FHSWFDUYHGLORO
IRU&+)1<+$&ODVV,DQG,,
GD\V
&DUGLDFDQWLDUUK\WKPLFV&ODVV,D,,,
GD\VXQOHVVDPLRGDURQHWKHQPRQWKV
$QWLFRQYXOVDQWVIRUVHL]XUHGLVRUGHUE
$OORZHGLIVWDEOHGRVHIRUPRQWKVDQGIUHHRI
VHL]XUHVIRU\HDU
7ULF\FOLFDQWLGHSUHVVDQWVF
GD\V
0RQRDPLQHR[LGDVHLQKLELWRUV
GD\V
$QWLWXPRUQHFURVLVIDFWRUĮDQWLERGLHV
HJLQIOL[LPDEDQGDQ\RWKHUPHPEHUVRIWKLVFODVV
RIGUXJV
GD\VRUKDOIOLYHVZKLFKHYHULVORQJHU
0RQRFORQDODQWLERGLHV
GD\VRUKDOIOLYHVZKLFKHYHULVORQJHU
$QWLSV\FKRWLFGUXJVF
GD\V
6\VWHPLFFDOFLQHXULQLQKLELWRUVV\VWHPLFDQWLIXQJDO
DJHQWVSURWHDVHLQKLELWRUVDQGFLPHWLGLQH
GD\V
6\VWHPLFDQWLFKROLQHUJLFVG
&KLQHVHFRPSOHPHQWDU\DQGDOWHUQDWLYH
EURQFKRGLODWRU\PHGLFLQHV&$0LHKHUEDO
WKHUDSLHVVXFKDVAstragalus membranaceus [KXiQJ
Tt@, Panax ginseng [ginseng products]DQG
Cordyceps sinensis. A. membranaceus [ghost moth 
caterpillar fungus])H
GD\V
GD\V
1RWH%HQ]RGLD]HSLQHVDUHQRWH[FOXVLRQDU\
D6XEMHFWVZKRDUHRQPHGLFDWLRQVWKDWKDYHWKHSRWHQWLDOWRSURORQJWKH47FLQWHUYDOPD\EHHQUROOHGSURYLGHGWKHGRVHKDVUHPDLQHGVWDEOH
IRUDWOHDVWPRQWKVSULRUWR9LVLWWKHVXEMHFWPHHWVDOORIWKH(&*LQFOXVLRQFULWHULDDQGQRQHRIWKH(&*H[FOXVLRQFULWHULDDQGLILQWKH
RSLQLRQRIWKH,QYHVWLJDWRUWKHUHDUHQRVDIHW\FRQFHUQVIRUWKHVXEMHFWWRSDUWLFLSDWHLQWKHVWXG\,QLWLDWLRQRIPHGLFDWLRQVZLWKWKH
SRWHQWLDOWRVLJQLILFDQWO\SURORQJWKH47LQWHUYDOLVSURKLELWHGWKURXJKRXWWKHVWXG\
E$QWLFRQYXOVDQWVIRUFRQGLWLRQVRWKHUWKDQVHL]XUHVPD\EHVWDUWHGDQGVWRSSHGDWDQ\WLPHSULRUWRWKHVWXG\DQGWKURXJKRXWWKHUDQGRPL]HG
WUHDWPHQWSHULRG
F7ULF\FOLFDQWLGHSUHVVDQWVDQGDQWLSV\FKRWLFDJHQWVXVHGIRUSUHYLRXVO\GLDJQRVHGXQGHUO\LQJPHGLFDOFRQGLWLRQVDUHDOORZHGLILQWKH
RSLQLRQRIWKH,QYHVWLJDWRUWKHUHDUHQRFRQFHUQVUHJDUGLQJSDWLHQWVDIHW\DQGLIWKHSDWLHQWKDVEHHQRQDVWDEOHGRVHIRUDWOHDVWZHHNV
G,IV\VWHPLFDQWLFKROLQHUJLFVDUHXVHGIRUWUHDWPHQWRI,UULWDEOH%RZHO6\QGURPHRURYHUDFWLYHEODGGHUDQGWKHWUHDWPHQWKDVEHHQFRQVWDQW
IRUDWOHDVWPRQWKWKH\DUHDOORZHG
H5HTXLUHVFDVHE\FDVHUHYLHZE\WKH,QYHVWLJDWRUWRGHWHUPLQHDSSURSULDWHZDVKRXWSHULRGLIQHHGHG

 2WKHU3URKLELWHG0HGLFDWLRQV
7DEOHOLVWVFHUWDLQQRQ&23'PHGLFDWLRQVWKDWPD\EHXVHGXQGHUWKHVWDWHGFRQGLWLRQV
GXULQJWKLVVWXG\(DFKFRQFRPLWDQWGUXJPXVWEHLQGLYLGXDOO\DVVHVVHGDJDLQVWDOOH[FOXVLRQ
FULWHULD



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH
1RQ&23'0HGLFDWLRQV$OORZHG8QGHU&HUWDLQ&RQGLWLRQV
0HGLFDWLRQV$OORZHG8QGHU&HUWDLQ
&RQGLWLRQV
&RQGLWLRQ
665,VRU615,V
7UHDWPHQWUHJLPHQKDVEHHQVWDEOHIRUDW
OHDVWIRXUZHHNVSULRUWR9LVLWDQGQRW
DOWHUHGGXULQJWKH6FUHHQLQJ3HULRGDQGGRHV
QRWH[FHHGWKHPD[LPXPUHFRPPHQGHGGRVH
,QWUDQDVDOFRUWLFRVWHURLGVLQWUDQDVDO
DQWLKLVWDPLQHVRUFRPELQDWLRQWKHUHRI
$GPLQLVWHUHGDWFRQVWDQWGRVHDQGGRVLQJ
UHJLPHQIRUDWOHDVWVHYHQGD\VSULRUWR
9LVLWDQGGXULQJWKH6FUHHQLQJ3HULRG
615, VHURWRQLQ±QRUHSLQHSKULQHUHXSWDNHLQKLELWRUV665, VHOHFWLYHVHURWRQLQUHXSWDNHLQKLELWRUV

2WKHU5HVWULFWLRQV,OOLFLW'UXJVRU'UXJVRI$EXVH
 ,OOLFLW'UXJVRU'UXJVRI$EXVH
,OOLFLWGUXJVRUGUXJVRIDEXVHZLOOQRWEHDOORZHGIURPWKHVWDUWRI6FUHHQLQJ9LVLWWRWKH
HQGRIWKH)ROORZXS7&RUWRZKHQHYHUWKHVXEMHFWZLWKGUDZVIURPWKHVWXG\,IDQ\LOOLFLW
GUXJVRUGUXJVRIDEXVHDUHXVHGE\WKHVXEMHFWGXULQJWKHVWXG\WKHGDWHVRIXVHDQGWKH
DPRXQWZLOOEHGRFXPHQWHGDQGWKHVXEMHFWZLOOEHGLVFRQWLQXHGDWWKHGLVFUHWLRQRIWKH
,QYHVWLJDWRU0HGLFDOPDULMXDQDLVQRWDQH[FOXVLRQDU\GUXJLIXVHGIRUPHGLFDOSXUSRVHV
DQGWKHUHLVQRFKDQJHLQWKHGRVHRUIUHTXHQF\RIFRQVXPSWLRQ
 'LHWDU\5HVWULFWLRQV
6XEMHFWVPXVWQRWLQJHVW[DQWKLQHDQGRU[DQWKLQHDQDORJXHFDIIHLQHFRQWDLQLQJIRRGVDQG
EHYHUDJHVDQGFDIIHLQHFRQWDLQLQJPHGLFDWLRQVIRUDWOHDVWVL[KRXUVSULRUWRDQGIRUWKH
GXUDWLRQRIHDFKLQFOLQLFVWXG\YLVLW([DPSOHVRIVXFKSURGXFWVLQFOXGHFRIIHHWHD
FKRFRODWHDQGFROD'HFDIIHLQDWHGEHYHUDJHVDUHDFFHSWDEOH

6PRNLQJ6WDWXV
&KDQJHVLQDVXEMHFW¶VVPRNLQJVWDWXVLHVWRSSLQJRUUHVWDUWLQJVPRNLQJPD\KDYHDQ
LPSDFWRQHIILFDF\RXWFRPHPHDVXUHV7KHUHIRUHDW9LVLWVWKURXJK:HHNRU)LQDO
6WXG\9LVLW VXEMHFWVZLOOEHDVNHGDERXWDQ\UHFHQWFKDQJHVLQWKHLUVPRNLQJVWDWXVLH
VXEMHFWKDVJRQHIURPDVPRNHUWRDQRQVPRNHURUYLFHYHUVD$Q\FKDQJHLQVPRNLQJ
VWDWXVEHWZHHQ9LVLWVWRZLOOUHVXOWLQDVFUHHQIDLOXUH6PRNLQJVWDWXVFKDQJHVGXULQJ
9LVLWVWR:HHNRU)LQDO6WXG\9LVLWZLOOEHFDSWXUHGLQWKHH&5)EXWWKHVXEMHFW
ZLOOEHSHUPLWWHGWRFRQWLQXHLQWKHVWXG\
$OOVXEMHFWVZLOOEHUHTXLUHGWRUHIUDLQIURPVPRNLQJLQFOXGLQJPHGLFDOPDULMXDQDDQG
HOHFWURQLFFLJDUHWWHVIRUDWOHDVWKRXUVSULRUWRHDFKLQFOLQLFVWXG\YLVLWDQGWKURXJKRXWWKH
GXUDWLRQRIHDFKVWXG\YLVLW6WXG\SDUWLFLSDQWVPD\XWLOL]HYDULRXVQLFRWLQHUHSODFHPHQW
WUHDWPHQWVVXFKDVFKHZLQJJXPDQGSDWFKHVDVQHHGHGLQDFFRUGDQFHZLWK
UHFRPPHQGDWLRQVIURPWKH,QYHVWLJDWRUGXULQJWKHHQWLUHVWXG\YLVLW
1RWH)RUWKLVVWXG\WKHXVHRIHOHFWURQLFFLJDUHWWHVZLOOEHWUHDWHGLQWKHVDPHPDQQHUDV
VPRNLQJ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

5HDVRQVIRU7UHDWPHQW'LVFRQWLQXDWLRQRU6WXG\:LWKGUDZDO
 5HDVRQVIRU7UHDWPHQW'LVFRQWLQXDWLRQ
6XEMHFWVUHTXLULQJDQ\RIWKHSURKLELWHGPHGLFDWLRQVOLVWHGLQ6HFWLRQVDQGRWKHU
WKDQVWXG\SURYLGHGPHGLFDWLRQDQG&23'H[DFHUEDWLRQPHGLFDWLRQVKRXOGEHZLWKGUDZQ
IURPUDQGRPL]HGWUHDWPHQWEXWHQFRXUDJHGWRFRQWLQXHLQWKHVWXG\DQGFRPSOHWHDOOVWXG\
YLVLWV
,IDVXEMHFWH[SHULHQFHVDQ\RIWKHFKDQJHVRIFRQFHUQOLVWHGEHORZDUHSHDWDVVHVVPHQW
VKRXOGEHREWDLQHGDQGLIFRQILUPHGWKHVXEMHFWVKRXOGEHGLVFRQWLQXHGIURPUDQGRPL]HG
WUHDWPHQWEXWHQFRXUDJHGWRFRQWLQXHLQWKHVWXG\DQGFRPSOHWHDOOVWXG\YLVLWV
x &DOFXODWHG47F)LQWHUYDOV!PVHFZKLFKKDVLQFUHDVHGE\PVHFIURPSUHGRVH
EDVHOLQHYDOXHREWDLQHGDW5DQGRPL]DWLRQ
EU-specific regions only&DOFXODWHG47F)LQWHUYDOVPVHF25PVHFIURP
SUHGRVHEDVHOLQHYDOXHREWDLQHGDW5DQGRPL]DWLRQ
 +HSDWLFLPSDLUPHQWGHILQHGDVDEQRUPDOOLYHUIXQFWLRQWHVWRI$67$/7RUWRWDO
ELOLUXELQWLPHVXSSHUOLPLWRIQRUPDO
,IDVXEMHFWH[SHULHQFHVDQ\RIWKHFKDQJHVRIFRQFHUQOLVWHGEHORZDUHSHDWDVVHVVPHQW
VKRXOGEHREWDLQHGDQGLIFRQILUPHGWKH,QYHVWLJDWRUQHHGVWRPDNHDGHWHUPLQDWLRQDVWR
WKHVXLWDELOLW\RIFRQWLQXLQJWKHVXEMHFWLQWKHUDQGRPL]HGWUHDWPHQW
 )ROORZLQJGRVLQJDKHDUWUDWH!ESPDQGLQZKLFKWKHUHLVDQLQFUHDVHRI!ESP
IURPWKHSUHGRVHYDOXHIRUDJLYHQVWXG\YLVLW
EU-specific regions only)ROORZLQJGRVLQJDKHDUWUDWHLQFUHDVHRI!ESPIURPWKH
SUHGRVHYDOXHIRUDJLYHQVWXG\YLVLW
 )ROORZLQJGRVLQJDV\VWROLFEORRGSUHVVXUH6%3!PP+JDQGDQLQFUHDVHRI!
PP+JIURPWKHSUHGRVHYDOXHIRUDJLYHQVWXG\YLVLW
EU-specific regions only)ROORZLQJGRVLQJD6%3LQFUHDVHRI!PP+JIURPWKH
SUHGRVHYDOXHIRUDJLYHQVWXG\YLVLWRUDFOLQLFDOO\UHOHYDQWFKDQJHIURPEDVHOLQH
REWDLQHGDW5DQGRPL]DWLRQDVGHWHUPLQHGE\WKH,QYHVWLJDWRU
 $GHFUHDVHLQFUHDWLQLQHFOHDUDQFHWRDYDOXHP/PLQXWHXVLQJWKH&.'(3,
IRUPXODRUDFOLQLFDOO\UHOHYDQWFKDQJHIURPSUHGRVHEDVHOLQHREWDLQHGDW5DQGRPL]DWLRQ
DVGHWHUPLQHGE\WKH,QYHVWLJDWRU
EU-specific regions only$GHFUHDVHRILQFDOFXODWHGFUHDWLQLQHFOHDUDQFHIURPSUH
GRVHEDVHOLQHREWDLQHGDW5DQGRPL]DWLRQXVLQJ&.'(3,

5HDVRQVIRU6WXG\:LWKGUDZDO
,IDVXEMHFWEHFRPHVSUHJQDQWGXULQJWKHFRXUVHRIWKHVWXG\VKHZLOOGLVFRQWLQXH
UDQGRPL]HGWUHDWPHQWDQGPXVWEHZLWKGUDZQIURPWKHVWXG\DQGIROORZHGXQWLOGHOLYHU\RU
ILQDORXWFRPH3OHDVHVHH6HFWLRQIRUDGGLWLRQDOSURFHGXUHV
6XEMHFWVPD\EHZLWKGUDZQIURPWKHVWXG\DWWKHLURZQUHTXHVWRUXSRQWKHUHTXHVWRIWKH
,QYHVWLJDWRURUWKH6SRQVRUDWDQ\WLPHDQGIRUDQ\UHDVRQ3OHDVHVHH6HFWLRQVDQG
IRUDGGLWLRQDOSURFHGXUHV



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

/$%(/,1*3$&.$*,1*6725$*(',63(16,1*$1'
5(78512)&/,1,&$/6833/,(6

6XEMHFW,QIRUPDWLRQ
&OLQLFDOVXSSOLHVZLOOEHSDFNDJHGWRVXSSRUWHQUROOPHQWRIWKHVWXG\6WXG\SHUVRQQHOZLOO
KDYHDFFHVVWRDQ,:56WRDOORFDWHVXEMHFWVDVVLJQVWXG\UHODWHGGUXJWRVXEMHFWVDQG
PDQDJHWKHGLVWULEXWLRQRIFOLQLFDOVXSSOLHV&OLQLFDOVXSSOLHVZLOOEHSDFNDJHGDFFRUGLQJWR
DFRPSRQHQWVFKHGXOHJHQHUDWHGE\WKH6SRQVRURUWKHLUGHVLJQHH(DFKSHUVRQDFFHVVLQJWKH
,:56V\VWHPZLOOEHDVVLJQHGDXQLTXHSHUVRQDOLGHQWLILFDWLRQQXPEHU3,17KH\PXVW
XVHRQO\WKHLUDVVLJQHG3,1WRDFFHVVWKHV\VWHPDQGPXVWQRWVKDUHWKHLUDVVLJQHG3,1ZLWK
DQ\RQHHYHQDQRWKHUFROOHDJXHLQYROYHGZLWKWKHVWXG\

3URGXFW'HVFULSWLRQ
,QYHVWLJDWLRQDOPDWHULDOVZLOOEHSURYLGHGE\WKH6SRQVRUDVVXPPDUL]HGLQ7DEOHEHORZ
7KH6SRQVRUZLOOSURYLGHRSHQODEHO9HQWROLQ+)$DQGPDQXIDFWXUHU¶VLQVWUXFWLRQVIRU
GUXJDGPLQLVWUDWLRQDUHSURYLGHGLQ$SSHQGL[
7DEOH
3URGXFW'HVFULSWLRQV
3URGXFW1DPH	'RVH
3URGXFW6WUHQJWK
'RVDJH)RUP)LOO
&RXQW
$GPLQLVWUDWLRQ
6WXG\0HGLFDWLRQV
%))0',J
JSHUDFWXDWLRQ
0',LQKDODWLRQV
7DNHQDVLQKDODWLRQV
%,'
%))0',J
JSHUDFWXDWLRQ
0',LQKDODWLRQV
7DNHQDVLQKDODWLRQV
%,'
))0',J
JSHUDFWXDWLRQ
0',LQKDODWLRQV
7DNHQDVLQKDODWLRQV
%,'
2SHQ/DEHO3URGXFWV
$OEXWHURO6XOIDWH
LQKDODWLRQDHURVROȝJD

9HQWROLQ+)$E
(DFKLQKDODWLRQFRQWDLQVȝJ
DOEXWHUROVXOIDWHFRUUHVSRQGLQJWR
JDOEXWHUROEDVH
0',RU
LQKDODWLRQV
LQKDODWLRQVIRU
UHYHUVLELOLW\WHVWLQJDW9LVLW

7DNHDVQHHGHGIRU
GXUDWLRQRIVWXG\
%))0', %XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO%,' 7ZLFH'DLO\))0', )RUPRWHURO
)XPDUDWH,QKDODWLRQ$HURVRO+)$ +\GURIOXRURDONDQH0', 0HWHUHG'RVH,QKDOHU
D$OEXWHUROVXOIDWHLVDOVRNQRZQDVVDOEXWDPROVXOIDWHLQVRPHFRXQWULHV
E8QLWHG6WDWHV86VRXUFHGSURGXFWVDUHWKHSUHIHUUHGSURGXFW,QFDVHVZKHUHLWLVQRWSRVVLEOHIRUWKH86VRXUFHG
SURGXFWWREHXVHGDORFDOO\DYDLODEOHSURGXFWZLOOEHSURYLGHGE\WKH6SRQVRU


3ULPDU\3DFNDJLQJDQG/DEHOLQJ
,QYHVWLJDWLRQDOPDWHULDOVZLOOEHSDFNDJHGE\WKH6SRQVRU
%OLQGHG6XSSOLHV(DFK%))0',DQG))0',ZLOOEHFRQWDLQHGLQDER[DQGODEHOHGZLWK
DVLQJOHODEHO,QVLGHWKHER[ZLOOEHDODEHOHGDFWXDWRUDQGDODEHOHGIRLOSRXFKFRQWDLQLQJ
WKH0',FDQLVWHURIVWXG\PHGLFDWLRQ
2SHQODEHO6XSSOLHV2SHQODEHO9HQWROLQ+)$ZLOOEHSURYLGHGDVDQLQGLYLGXDOO\ODEHOHG
0',ZLWKDVLQJOHODEHORQWKHDFWXDWRUDQGDIRLOSRXFKFRQWDLQLQJWKH9HQWROLQFDQLVWHU
/DEHOVZLOOEHSULQWHGZLWKEODFNLQNDQGPD\LQFOXGHWKHIROORZLQJWH[W

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
/RW3DFNDJLQJ/RW7UDFH,'
6SDFHIRUHQWU\RIVFUHHQLQJ
&RPSRQHQW,'
6SDFHIRUHQWU\RIUDQGRPL]DWLRQ
)LOO&RXQW	'RVDJH)RUP
9LVLW6SDFHIRU(QWU\RI,QWHUYDO,'
6WRUDJH&RQGLWLRQV
3URWRFRO
&RXQWU\UHJXODWRU\UHTXLUHPHQWV
6SRQVRUDGGUHVV7UDQVODWLRQ.H\
,' LGHQWLILFDWLRQ QXPEHU


6HFRQGDU\3DFNDJLQJDQG/DEHOLQJ
%OLQGHGLQYHVWLJDWLRQDOGUXJDQGRSHQODEHO9HQWROLQ+)$VXSSOLHVZLOOEHSDFNDJHGLQ
LQGLYLGXDOER[HVDVRXWOLQHGLQ7DEOH%R[FRQILJXUDWLRQLVVXEMHFWWRFKDQJHDVDUHVXOW
RISDFNDJLQJFRQVWUDLQWV
7DEOH
'HVFULSWLRQRI%R[HV
'UXJ6XSSOLHV
,QGLYLGXDO%R[&RQWHQWV
%OLQGHG
9HQWROLQDOEXWHUROVXOIDWH+)$D
0',
0',
+)$ K\GURIOXRURDONDQH0', PHWHUHGGRVHLQKDOHU
D7KH86VRXUFHGSURGXFWVDUHWKHSUHIHUUHGSURGXFWIRUXVHGXULQJWKHVWXG\,QUHJLRQVZKHUHLWLVQRW
SRVVLEOHIRU86VRXUFHGSURGXFWVWREHXVHGDORFDOO\DYDLODEOHFRPSDUDEOHSURGXFWZLOOEHSURYLGHGE\WKH
6SRQVRU

(DFKER[ZLOOEHODEHOHGZLWKDSDUWODEHOSULQWHGZLWKEODFNLQNDQGPD\LQFOXGHWKH
IROORZLQJWH[W
3DFNDJLQJ/RW,'
6SDFHIRUHQWU\RIVFUHHQLQJ
&RPSRQHQW,'
6SDFHIRUHQWU\RIUDQGRPL]DWLRQ
.LW&RQWHQWV0',
6SDFHIRUHQWU\RI,QWHUYDO,'
5HHYDOXDWLRQ([SLUDWLRQGDWHLIDSSOLFDEOH
'RVLQJ,QVWUXFWLRQVLIDSSOLFDEOH
6WRUDJH&RQGLWLRQV
&RPSRXQG,'3URWRFRO
&RXQWU\UHJXODWRU\UHTXLUHPHQWV
6SRQVRUDGGUHVVLIDSSOLFDEOH
7UDQVODWLRQ.H\LIDSSOLFDEOH


(PHUJHQF\8QEOLQGLQJRI7UHDWPHQW$VVLJQPHQW
7KH,QYHVWLJDWRURUGHVLJQHHPD\XQEOLQGDVXEMHFW¶VWUHDWPHQWDVVLJQPHQWRQO\LQWKHFDVH
RIDQHPHUJHQF\ZKHQNQRZOHGJHRIWKHVWXG\WUHDWPHQWLVHVVHQWLDOIRUWKHDSSURSULDWH
FOLQLFDOPDQDJHPHQWRUZHOIDUHRIWKHVXEMHFW
(PHUJHQF\XQEOLQGLQJRIVWXG\GUXJIRUDJLYHQVXEMHFWPXVWEHGRQHXWLOL]LQJWKH,:56DV
DVWXG\WUHDWPHQWGLVFORVXUHHQYHORSHZLOOQRWEHSURYLGHGZLWKWKHFOLQLFDOVXSSOLHV
:KHQHYHUSRVVLEOHWKH,QYHVWLJDWRUVKRXOGILUVWGLVFXVVRSWLRQVZLWKWKH6SRQVRU0HGLFDO
0RQLWRURURWKHUDSSURSULDWH6SRQVRUVWXG\SHUVRQQHOEHIRUHXQEOLQGLQJWKHVXEMHFW¶V
WUHDWPHQWDVVLJQPHQW,IWKLVLVLPSUDFWLFDOWKH,QYHVWLJDWRUPXVWQRWLI\WKH6SRQVRUDVVRRQ
DVSRVVLEOHEXWZLWKRXWUHYHDOLQJWKHWUHDWPHQWDVVLJQPHQWRIWKHXQEOLQGHGVXEMHFWXQOHVV
WKDWLQIRUPDWLRQLVLPSRUWDQWIRUWKHVDIHW\RIRWKHUVXEMHFWVFXUUHQWO\HQUROOHGLQWKHVWXG\
,IWKH,QYHVWLJDWRUFRQWDFWV,:56WRXQEOLQGDVXEMHFWVKHPXVWSURYLGHWKHUHTXHVWHG
VXEMHFWLGHQWLI\LQJLQIRUPDWLRQDQGFRQILUPWKHQHFHVVLW\WRXQEOLQGWUHDWPHQW7KHGDWHDQG
UHDVRQIRUWKHXQEOLQGLQJPXVWEHUHFRUGHGLQWKHDSSURSULDWHH&5)

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

6WRUDJH5HTXLUHPHQWV
%OLQGHGVXSSOLHV%))0',DQG))0',VKRXOGEHVWRUHGEHORZ&)LQDGU\
SODFH([FXUVLRQVSHUPLWWHGXSWR&)
9HQWROLQ+)$VXSSOLHV6WRUHEHWZHHQ&DQG&)DQG)6WRUHWKHLQKDOHU
ZLWKWKHPRXWKSLHFHGRZQ)RUEHVWUHVXOWVWKHLQKDOHUVKRXOGEHDWURRPWHPSHUDWXUH
EHIRUHXVH'RQRWXVHRUVWRUHQHDUKHDWRURSHQIODPH([SRVXUHWRWHPSHUDWXUHVDERYH
)&PD\FDXVHEXUVWLQJ1HYHUWKURZLQWRDILUHRULQFLQHUDWRU
7KHWHPSHUDWXUHRIWKHVLWH¶VVWRUDJHDUHDIRUVWXG\VXSSOLHVPXVWEHPRQLWRUHGE\VLWHVWDII
IRUWHPSHUDWXUHUDQJHVFRQVLVWHQWZLWKWKRVHVSHFLILHGLQWKHSURWRFRO'RFXPHQWDWLRQRI
WHPSHUDWXUHPRQLWRULQJVKRXOGEHPDLQWDLQHGDWWKHVLWHDQGDYDLODEOHIRUUHYLHZ

,QVWUXFWLRQVIRU'LVSHQVLQJDQG3UHSDUDWLRQRI7UHDWPHQWVIRU
$GPLQLVWUDWLRQ
 %))0',DQG))0',
7UHDWPHQW'LVSHQVLQJ
,QGLYLGXDO%))0',DQG))0',LQKDOHUVZLOOEHSDFNDJHGLQDIRLOSRXFKDQGFRQWDLQHGLQ
DQLQGLYLGXDOYLVLWWUHDWPHQWER[%RWKWKHYLVLWWUHDWPHQWER[DQGWKHIRLORYHUZUDSZLOO
KDYHDODEHOZLWKDFRPSRQHQW,'QXPEHU&RQILUPWKHLGHQWLILHUJLYHQE\,:56DQGWKH
FRPSRQHQW,'QXPEHUZULWWHQRQWKHODEHODUHWKHVDPH7KHYLVLWWUHDWPHQWER[LVODEHOHG
ZLWKDSDUWODEHO:ULWHWKHVXEMHFWQXPEHUDQGWUHDWPHQWYLVLWQXPEHURQHDFKRIWKH
SDUWODEHOV7KHµWHDURII¶SDUWRIWKHODEHOLVWREHSODFHGRQWRWKH,:56FRQILUPDWLRQ
UHSRUW
7UHDWPHQW3UHSDUDWLRQIRU$GPLQLVWUDWLRQ
$OO0',VPXVWEHSULPHGEHIRUHWKHILUVWXVH3ULPLQJLQYROYHVUHOHDVLQJIRXUVSUD\VLQWR
WKHDLUEHIRUHWKHILUVWXVHRIWKHLQKDOHU6KDNLQJDQGSULPLQJWKHLQKDOHUILOOVDFKDPEHU
LQVLGHWKHFDQLVWHUZLWKWKHFRUUHFWGRVHDQGPL[RIPHGLFDWLRQVRWKDWWKHLQKDOHULVUHDG\WR
XVH
0',VPXVWEHSULPHGLQDVHSDUDWHURRPIURPWKHVXEMHFWWUHDWPHQWDUHD2QFHSULPHG
VXEMHFWVVKRXOGEHLQVWUXFWHGRQXVHDQGGRVLQJWZRSXIIVLQWKHPRUQLQJDQGWZRSXIIVLQ
WKHHYHQLQJDSSUR[LPDWHO\KRXUVDSDUW7KH0',VKRXOGWKHQEHJLYHQWRWKHVXEMHFWIRU
GRVHDGPLQLVWUDWLRQ6LWHSHUVRQQHOVKRXOGREVHUYHWKHVXEMHFWWDNHWKHLUILUVWGRVHDQG
VKRXOGUHFRUGWKHWLPHRIVHFRQGSXIILQWKHH&5)DVWKHWLPHRIGRVHDGPLQLVWUDWLRQ
5HIHUWR$SSHQGL[IRUDGGLWLRQDOLQVWUXFWLRQVRQWKHDGPLQLVWUDWLRQDQGFOHDQLQJRIWKH
%))0',DQG))0',
 9HQWROLQ+)$$OEXWHURO6XOIDWH
5HIHUWR$SSHQGL[IRULQVWUXFWLRQVRQWKHDGPLQLVWUDWLRQRI9HQWROLQ
2SHQODEHO0',VZLOODOVREHSDFNDJHGLQDYLVLWWUHDWPHQWER[7KHYLVLWWUHDWPHQWER[ZLOO
KDYHDODEHOZLWKDFRPSRQHQW,'QXPEHU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

'UXJ$FFRXQWDELOLW\5HWXUQRI&OLQLFDO6XSSOLHV
8QGHUQRFLUFXPVWDQFHVZLOOWKH,QYHVWLJDWRUVDOORZWKHVWXG\GUXJWREHXVHGRWKHUWKDQDV
GLUHFWHGE\WKLVSURWRFRO
,QYHVWLJDWLRQDOFOLQLFDOVXSSOLHVPXVWEHUHFHLYHGE\DGHVLJQDWHGSHUVRQDWWKHVWXG\VLWH
KDQGOHGDQGVWRUHGVDIHO\DQGSURSHUO\DQGNHSWLQDVHFXUHORFDWLRQWKDWRQO\WKH
,QYHVWLJDWRUDQGGHVLJQDWHGVWXG\SHUVRQQHOKDYHDFFHVV&OLQLFDOVXSSOLHVVKRXOGEH
GLVSHQVHGRQO\LQDFFRUGDQFHZLWKWKHSURWRFRO
7KH,QYHVWLJDWRURUGHVLJQHHLVUHVSRQVLEOHIRUNHHSLQJDFFXUDWHUHFRUGVRIWKHFOLQLFDO
VXSSOLHVUHFHLYHGIURPWKH6SRQVRUWKHDPRXQWGLVSHQVHGWRDQGUHWXUQHGE\WKHVXEMHFWDQG
WKHDPRXQWUHPDLQLQJDWWKHFRQFOXVLRQRIWKHVWXG\6WXG\GUXJVKRXOGEHKDQGOHGLQ
DFFRUGDQFHZLWK*RRG3KDUPDF\3UDFWLFHVHJJORYHVVKRXOGDOZD\VEHZRUQE\VWXG\
SHUVRQQHOLIGLUHFWO\KDQGOLQJVWXG\GUXJWKDWLVUHWXUQHG7KH6SRQVRU0HGLFDO0RQLWRURU
GHVLJQHHVKRXOGEHFRQWDFWHGZLWKDQ\TXHVWLRQVFRQFHUQLQJLQYHVWLJDWLRQDOSURGXFWVZKHUH
VSHFLDORUSURWHFWLYHKDQGOLQJLVLQGLFDWHG$WWKHHQGRIWKHVWXG\DOOFOLQLFDOVXSSOLHV
LQFOXGLQJSDUWLDODQGHPSW\FRQWDLQHUVPXVWEHUHWXUQHGDVGLUHFWHGE\WKH6SRQVRU
6LWHVVKRXOGFKHFNZLWKWKH6SRQVRU¶VUHSUHVHQWDWLYHIRUDSSURSULDWHGRFXPHQWDWLRQWKDW
QHHGVWREHFRPSOHWHGIRUGUXJDFFRXQWDELOLW\
7KH,QYHVWLJDWRURUGHVLJQDWHGVWXG\SHUVRQQHOVKRXOGQRWRSHQLQGLYLGXDOFOLQLFDOVXSSO\
FRQWDLQHUVXQWLODOOSUHGRVHDVVHVVPHQWVKDYHEHHQFRPSOHWHGDQGWKHVXEMHFWLVHOLJLEOHWR
EHUDQGRPL]HGFRQWLQXHZLWKWKHVWXG\$Q\GHYLDWLRQIURPWKLVPXVWEHGLVFXVVHGZLWKWKH
6SRQVRU¶V0HGLFDO0RQLWRURUGHVLJQHH
)RUHDFKVXEMHFWDOOXVHGVWXG\GUXJPDWHULDOVZLOOEHFROOHFWHG8VHGVXEMHFWVXSSOLHVZLOO
EHNHSWDWURRPWHPSHUDWXUHLQDVHFXUHDQGORFNHGFDELQHWXQWLOUHWXUQHGWRWKH6SRQVRURU
GHVLJQHH
8VHGVWXG\GUXJPXVWEHVWRUHGVHSDUDWHO\IURPXQXVHGVWXG\GUXJ
$OOSURGXFWFRPSODLQWVLQFOXGLQJGHYLFHPDOIXQFWLRQVPXVWEHUHSRUWHGWRWKH6SRQVRURU
WKH6SRQVRU¶VUHSUHVHQWDWLYHXVLQJWKH3URGXFW&RPSODLQWV)RUPSURYLGHGLQHDFKVLWH¶V
UHJXODWRU\ELQGHU7KH6SRQVRURUWKHLUUHSUHVHQWDWLYHVZLOOFRQWDFWWKHVLWHWRHYDOXDWHWKH
QDWXUHRIWKHFRPSODLQWDQGGHWHUPLQHLIIXUWKHUDFWLRQLVQHHGHG


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<352&('85(6
$VFKHGXOHRIHYHQWVIRUDOOVWXG\DVVHVVPHQWVLVSURYLGHGLQ7DEOH

(IILFDF\$VVHVVPHQWV
 3XOPRQDU\)XQFWLRQ7HVWV3)7V
$OO3)7VLQFOXGLQJ)(9)9&DQG3()5DVGHILQHGLQ$76(56JXLGHOLQHVZLOOEH
SHUIRUPHGLQDFFRUGDQFHZLWK$76FULWHULDUHIHUWR$SSHQGL[>0LOOHU@
)RUFHGH[SLUDWRU\VSLURPHWU\PDQHXYHUVIRUGHULYDWLRQRI)(9)9&DQG3()5ZLOOEH
DVVHVVHGXVLQJDVSLURPHWHUWKDWPHHWVRUH[FHHGVPLQLPXPSHUIRUPDQFHUHFRPPHQGDWLRQV
RIWKH$76UHIHUWR$SSHQGL[
7KHYROXPHDFFXUDF\RIWKHVSLURPHWHULVWREHFKHFNHGGDLO\XVLQJD/V\ULQJHDFURVV
WKUHHIORZUDQJHVLHORZPHGLXPDQGKLJKIORZVZLWKWHPSHUDWXUHDQGEDURPHWULF
SUHVVXUHFRUUHFWLRQ7KHFDOLEUDWLRQV\ULQJHPXVWPHHW$76VSHFLILFDWLRQVDQGQRWEHXVHG
EH\RQGWKHH[SLU\GDWH5HTXLUHGDFFXUDF\LVLH/WR/$76(56
7KHUHVXOWVZLOOEHSULQWHGDQGPDLQWDLQHGLQDFDOLEUDWLRQORJZKLFKZLOOEHPRQLWRUHGIRU
FRPSOLDQFHGXULQJWKHPRQLWRULQJYLVLWVUHIHUWR$SSHQGL[
7RVWDQGDUGL]HVSLURPHWU\DOOVLWHVZLOOEHSURYLGHGZLWKLGHQWLFDOVSLURPHWU\V\VWHPV
ZLWKFXVWRPL]HG
VWXG\VSHFLILFVRIWZDUH(YHU\HIIRUWZLOOEHPDGHWRSURYLGHDOOVLWHVZLWKVWDQGDUGL]HG
VSLURPHWU\HTXLSPHQW7KHYROXPHDFFXUDF\RIWKHVSLURPHWHULVWREHFKHFNHGGDLO\ZLWK
DSSURSULDWHGRFXPHQWDWLRQLQDFDOLEUDWLRQORJSULRUWRWKHFRQGXFWRI3)7VRQHDFKWHVWGD\
,QWKHHYHQWWKDWLWLVQRWORJLVWLFDOO\SRVVLEOHWRSURYLGHVXFKHTXLSPHQWLQDVSHFLILFFRXQWU\
WKHXVHRIORFDO3)7HTXLSPHQWZLOOEHSHUPLWWHGPHUHO\IRUSDWLHQWHOLJLELOLW\DQG
FKDUDFWHUL]DWLRQSXUSRVHV/RFDOHTXLSPHQWQHHGVWREHUHYLHZHGE\WKHVWXG\PRQLWRUDQG
PXVWPHHWRUH[FHHGPLQLPXPSHUIRUPDQFHUHFRPPHQGDWLRQVRIWKH$76UHIHUWR
$SSHQGL[
$OOVWXG\VWDIIUHVSRQVLEOHIRUSHUIRUPLQJSXOPRQDU\IXQFWLRQWHVWLQJZLOOUHFHLYH
VWDQGDUGL]HGWUDLQLQJDWWKH,QYHVWLJDWRU0HHWLQJ$OOWHFKQLFLDQVDUHUHTXLUHGWRGHPRQVWUDWH
SURILFLHQF\LQWKHXVHRIWKHHTXLSPHQWDQGWKHDELOLW\WRSHUIRUPWHFKQLFDOO\DFFHSWDEOH
3)7V$76FULWHULDSULRUWRSHUIRUPLQJ3)7VRQVWXG\VXEMHFWV>0LOOHU@$IWHUHDFK
WHVWLVSHUIRUPHGWKHVSLURPHWU\VRIWZDUHZLOOSURYLGHLPPHGLDWHIHHGEDFNWRWKHWHFKQLFLDQ
LQGLFDWLQJZKHWKHUWKHHIIRUWPHHWV$76DFFHSWDELOLW\DQGUHSHDWDELOLW\VWDQGDUGV>0LOOHU
@$OO3)7WHVWLQJZLOOEHVWRUHGHOHFWURQLFDOO\$IWHUFRPSOHWLRQRIWHVWLQJWKHVWXG\
VWDIIZLOOHOHFWURQLFDOO\WUDQVPLWWKHVSLURPHWULFPHDVXUHPHQWVIRUFHQWUDOL]HGTXDOLW\
DVVXUDQFHUHYLHZ
)HHGEDFNRQWKHTXDOLW\
RIWKHPHDVXUHPHQWVZLOOEHSURYLGHGWRWKHLQYHVWLJDWLRQDOVLWHDQGWRWKH6SRQVRURU
GHVLJQHHIRUFHQWUDOGDWDPDQDJHPHQW
)RUH[DFWVSLURPHWU\FROOHFWLRQDQGVSHFLILFDWLRQVSOHDVHVHH7DEOH6FKHGXOHRI(YHQWV
DQG6HFWLRQWKURXJK6HFWLRQ
x $W9LVLWDVLQJOHVSLURPHWU\DVVHVVPHQWZLOOEHFRQGXFWHG
x $W9LVLWVSLURPHWU\ZLOOEHFRQGXFWHGPLQXWHVDQGPLQXWHVSULRUWR
EURQFKRGLODWRUDGPLQLVWUDWLRQDQGPLQXWHVSRVWEURQFKRGLODWRU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
x $WDOOUHPDLQLQJLQFOLQLFYLVLWVLH9LVLWVDQG>:HHNRU)LQDO
6WXG\9LVLW@VSLURPHWU\ZLOOEHFRQGXFWHGDQGPLQXWHVSULRUWRVWXG\GUXJ
DGPLQLVWUDWLRQ
6XEMHFWVZLOOEHUHTXLUHGWRUHWXUQWRWKHFOLQLFDSSUR[LPDWHO\WKHVDPHWLPHDV9LVLWIRUDOO
WUHDWPHQWYLVLWVKRXUV$OOLQFOLQLFGRVLQJPXVWRFFXUSULRUWR$0WLPLQJRIYLVLWV
PXVWEHSODQQHGDFFRUGLQJO\7KHVXEMHFWVZLOOEHUHTXLUHGWRUHPDLQDWWKHFOLQLFXQWLO
FRPSOHWLRQRIDOOSURWRFROGHILQHGDVVHVVPHQWV
1RWH6SLURPHWU\PXVWPHHWERWKDFFHSWDELOLW\DQGUHSHDWDELOLW\FULWHULDDW9LVLWWRSURFHHG
WR9LVLWUHIHUWRH[FOXVLRQFULWHULD6HFWLRQ
 &KDUDFWHUL]DWLRQRI5HYHUVLELOLW\
5HYHUVLELOLW\WR9HQWROLQ+)$6$%$ZLOOEHHYDOXDWHGIRUVXEMHFWFKDUDFWHUL]DWLRQ
SXUSRVHVDW9LVLWDVIROORZV
x 3HUIRUPSUHEURQFKRGLODWRU3)7VDWPLQXWHVDQGPLQXWHVSULRUWRDGPLQLVWUDWLRQ
RI9HQWROLQ
x $GPLQLVWHUSXIIVRI9HQWROLQ
x 3HUIRUPSRVWEURQFKRGLODWRU3)7VPLQXWHVDIWHUWKHDGPLQLVWUDWLRQRI9HQWROLQ
5HYHUVLELOLW\ZLOOEHDFRPSDULVRQRIWKHDYHUDJHEHVW)(9HIIRUWREWDLQHGDWPLQXWHV
DQGPLQXWHVSUHEURQFKRGLODWRUWRWKHEHVW)(9HIIRUWREWDLQHGDWPLQXWHV
SRVWEURQFKRGLODWRUIROORZLQJDGPLQLVWUDWLRQRI9HQWROLQ$VXEMHFWLVFRQVLGHUHGUHVSRQVLYH
WR9HQWROLQLIWKHLPSURYHPHQWLQ)(9DWPLQXWHVSRVW9HQWROLQLVDQGP/
 )(9%DVHOLQH6WDELOLW\&ULWHULD
$OOFRPSDULVRQVZLOOEHPDGHWRWKHEDVHOLQHPHDQRIDQGPLQXWHVSULRUWRGRVLQJ
YDOXHVREWDLQHGDW9LVLW5DQGRPL]DWLRQ,WLVLPSRUWDQWWRHQVXUHWKDWWKHEDVHOLQH)(9
LVVWDEOHDQGUHIOHFWLYHRIWKHVXEMHFW¶V&23'VHYHULW\SULRUWREHLQJUDQGRPL]HGLQWRWKH
VWXG\$VVXFKWKHEDVHOLQH)(9DW9LVLWPXVWEHZLWKLQRUP/RIWKHPHDQRI
WKHSUHGRVH)(9REWDLQHGDWWKHSUHFHGLQJYLVLWDYHUDJHRISUHGRVH)(9YDOXHV
REWDLQHGDW9LVLW$W9LVLWLIWKHSUHGRVH)(9DYHUDJHLVRXWVLGHRIWKHRU
P/UDQJHEXWWKHPLQDVVHVVPHQWLVZLWKLQRUP/WKHQDQRWKHU
DVVHVVPHQWPD\EHFRQGXFWHGPLQXWHVODWHU,IWKHODVWDVVHVVPHQWVPHHWWKH
)(9EDVHOLQHVWDELOLW\UHTXLUHPHQWVLHZLWKLQRUP/WKHLQLWLDOPLQXWHSUH
GRVHDVVHVVPHQWZLOOQRWEHXVHGDQGWKHODVWDVVHVVPHQWVZLOOEHXVHGWRHVWDEOLVKWKH
HOLJLELOLW\FULWHULD,IWKHWHVWGD\)(9LVQRWZLWKLQRUP/WKHVXEMHFWZLOOQRW
EHUDQGRPL]HGDQGZLOOEHFRQVLGHUHGDVFUHHQIDLOXUH
 6XEMHFW¶V(OHFWURQLF'LDU\'DWD&ROOHFWLRQ
3ULRUWRLVVXLQJWKHHOHFWURQLF'LDU\H'LDU\WRWKHVXEMHFWVLWHSHUVRQQHODUHUHVSRQVLEOHIRU
SURJUDPPLQJWKHH'LDU\DQGWUDLQLQJWKHVXEMHFWRQLWVXVH6XEMHFWVZLOOUHFHLYHWKHLU
H'LDU\DW9LVLWZKLFKLVWREHFRPSOHWHGWZLFHDGD\WKURXJKRXWWKHVWXG\7KHIROORZLQJ
LQIRUPDWLRQZLOOEHFDSWXUHGLQWKHH'LDU\WLPHRIVWXG\PHGLFDWLRQDGPLQLVWUDWLRQGDLO\
V\PSWRPV>XVLQJWKH([DFHUEDWLRQVRI&KURQLFSXOPRQDU\GLVHDVH7RRO(;$&7VFDOH@DQG
XVHRIDQ\UHVFXHPHGLFDWLRQLH9HQWROLQ
(OHFWURQLF'LDU\&RPSOLDQFH5HTXLUHPHQW
%HWZHHQ9LVLWVWRVXEMHFWVZLOOEHUHTXLUHGWRGHPRQVWUDWHDFFHSWDEOHH'LDU\FROOHFWLRQV
DQGFRPSOLDQFHLQRUGHUWREHHOLJLEOHIRUUDQGRPL]DWLRQ6XEMHFWSDUWLFLSDWLRQPD\EH
WHUPLQDWHGDWDQ\WLPHGXULQJWKHVWXG\IRUWKHIROORZLQJUHDVRQV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 6XEMHFWVZKRDUHXQDEOHWRPHHWWKHFRPSOLDQFHUHTXLUHPHQWVXEMHFWFRPSOHWLRQ
RIH'LDU\DVVHVVPHQWVLQWKHGD\VSULRUWR9LVLWZLOOEHFRQVLGHUHGDVFUHHQIDLOXUH
 &KURQLFIDLOXUHLQWKHMXGJPHQWRIWKH,QYHVWLJDWRULVQRQFRPSOLDQFHZLWKWKHH'LDU\
GHVSLWHGRFXPHQWDWLRQDWWKHVLWHRIUHSHDWHGHIIRUWVWRUHLQIRUFHFRPSOLDQFH$VGHILQHG
IRUWKLVVWXG\FRPSOLDQFHUHTXLUHVVXEMHFWFRPSOHWLRQRIH'LDU\DVVHVVPHQWVIRU
WKHGXUDWLRQRIWKHVWXG\7KH6SRQVRUPD\DOVRLQVWUXFWDVLWHWRGLVFRQWLQXHDVXEMHFW
EDVHGRQFRQVLVWHQWQRQFRPSOLDQFH
 5HVFXH0HGLFDWLRQ8VH
8VHRIUHVFXHPHGLFDWLRQLH9HQWROLQRUORFDOO\DYDLODEOHHTXLYDOHQWSURGXFWGXULQJWKH
FRQGXFWRIWKHVWXG\LVWREHUHFRUGHGE\WKHVXEMHFWLQWKHH'LDU\RQWKHGD\RIXVH(DFK
WLPHUHVFXHPHGLFDWLRQLVWDNHQWKHQXPEHURISXIIVLHDFWXDWLRQVVKRXOGEHFDSWXUHGLQ
WKHH'LDU\IRUWKHFRUUHVSRQGLQJVWXG\GD\
1RWH6XEMHFWVUHTXLULQJPRUHWKDQHLJKWSXIIVSHUGD\RQWKUHHFRQVHFXWLYHGD\VZLWK
ZRUVHQLQJV\PSWRPVVKRXOGFRQWDFWWKHVLWH
 0HGLFDWLRQ&RPSOLDQFH
6XEMHFWVZLOOUHFRUGWKHWLPHVPRUQLQJDQGHYHQLQJRIVWXG\GUXJGRVLQJLQWKHH'LDU\
H[FHSWRQWKHPRUQLQJVRILQFOLQLFGRVLQJ6WXG\GUXJFRPSOLDQFHZLOOEHFKHFNHGDWDOO
YLVLWV$Q\LVVXHVLGHQWLILHGZLOOEHGRFXPHQWHGLQWKHDSSURSULDWHVWXG\ILOHDQG
UHLQVWUXFWLRQZLOOEHFRPSOHWHGDVQHFHVVDU\
 0DMRUPLQRU6\PSWRP:RUVHQLQJ$VVHVVPHQWDQG$OHUW6\VWHP
6XEMHFWVZLOOFDSWXUHDOOPDMRUDQGPLQRUV\PSWRPVRIDZRUVHQLQJHYHQWLQWKHH'LDU\IRU
SXUSRVHVRIDµV\PSWRPZRUVHQLQJDOHUW¶,QWKLVZD\ERWKWKHVXEMHFWDQGWKHVLWHFDQEH
QRWLILHGRIWKHSRWHQWLDOIRUZRUVHQLQJV\PSWRPVWKDWQHHGIXUWKHUHYDOXDWLRQ
$OOTXHVWLRQVUHJDUGLQJZRUVHQLQJRIV\PSWRPVZLOOKDYHDKRXUUHFDOOSHULRG4XHVWLRQV
SHUWDLQLQJWRWKHVHYHULW\RIV\PSWRPVYHUVXVWKHLUXVXDOVWDWHZLOOKDYHWKUHHUHVSRQVH
RSWLRQVHJ+RZEUHDWKOHVVKDYH\RXEHHQLQWKHODVWKRXUV"/HVVEUHDWKOHVVQHVVWKDQ
XVXDO8VXDOOHYHORIEUHDWKOHVVQHVV0RUHEUHDWKOHVVWKDQXVXDOZKHUHDVTXHVWLRQVUHODWHGWR
WKHSUHVHQFHRUDEVHQFHRIDV\PSWRPZLOOKDYHDGLFKRWRPRXVUHVSRQVHHJ+DYH\RXKDG
DVRUHWKURDWLQWKHODVWKRXUV"1RRU<HV,KDGDVRUHWKURDW
$QDOHUWZLOOEHWULJJHUHGLIWZRRUPRUHPDMRUV\PSWRPVHJG\VSQHDVSXWXPYROXPHDQG
VSXWXPFRORUZRUVHQIRUWZRFRQVHFXWLYHGD\VRULIRQHPDMRUV\PSWRPDQGRQHPLQRU
V\PSWRPHJVRUHWKURDWFROGIHYHUZLWKRXWRWKHUFDXVHFRXJKDQGZKHH]HZRUVHQIRUDW
OHDVWWZRFRQVHFXWLYHGD\V:KHQHLWKHURIWKHVHFULWHULDLVPHWWKHVXEMHFWZLOOEHDOHUWHG
YLDWKHH'LDU\WRFRQWDFWWKHVLWHDVVRRQDVSRVVLEOHIRUIXUWKHUHYDOXDWLRQ/LNHZLVHWKH
VWXG\VLWHZLOOEHDOHUWHGWRFRQWDFWWKHVXEMHFWZLWKLQWKHQH[WWRKRXUVLIKHVKHKDV
QRWFRQWDFWHGWKHVLWHIRUIROORZXS
 &23'([DFHUEDWLRQ
$&23'H[DFHUEDWLRQLVGHILQHGDVDFKDQJHLQWKHVXEMHFW¶VXVXDO&23'V\PSWRPVWKDW
ODVWVWZRRUPRUHGD\VLVEH\RQGQRUPDOGD\WRGD\YDULDWLRQLVDFXWHLQRQVHWDQGPD\
ZDUUDQWDFKDQJHLQUHJXODUPHGLFDWLRQ7KHFKDQJHLQV\PSWRPVPXVWLQFOXGHDWOHDVWRQH
PDMRU&23'V\PSWRPDQGDWOHDVWRQHRWKHUPDMRURUPLQRUV\PSWRPIURPWKHOLVWEHORZ
x 0DMRU&23'V\PSWRPVG\VSQHDVSXWXPYROXPHDQGVSXWXPFRORU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
x 0LQRU&23'V\PSWRPVFRXJKZKHH]HVRUHWKURDWFROGV\PSWRPVUKLQRUUKHDRUQDVDO
FRQJHVWLRQDQGIHYHUZLWKRXWRWKHUFDXVH
,IV\PSWRPVDUHDFXWHRUKDYHSURJUHVVHGUDSLGO\DQGUHTXLUHWUHDWPHQWOHVVWKDQWZRGD\V
IURPRQVHWRIV\PSWRPVWKHLQYHVWLJDWRUZLOOKDYHWRMXVWLI\WKHGHFLVLRQIRUGHILQLQJWKH
HYHQWDVDQH[DFHUEDWLRQDQGUHFRUGLWLQWKHH&5)
,IDVXEMHFW¶VV\PSWRPVDQGWKHRYHUDOOFOLQLFDOILQGLQJVVXSSRUWWKHGLDJQRVLVRID&23'
H[DFHUEDWLRQEXWWKHVXEMHFWKDVQRWH[SHULHQFHGDZRUVHQLQJRIDWOHDVWRQHPDMRU&23'
V\PSWRPDQGDWOHDVWRQHRWKHUPDMRURUPLQRUV\PSWRPWKH,QYHVWLJDWRUZLOOKDYHWRMXVWLI\
WKHGHFLVLRQIRUGHILQLQJWKHHYHQWDVDQH[DFHUEDWLRQDQGUHFRUGLWLQWKHH&5)
 6HYHULW\RI&23'([DFHUEDWLRQ
&23'H[DFHUEDWLRQVZLOOEHFODVVLILHGDVPLOGPRGHUDWHRUVHYHUHEDVHGRQWKHIROORZLQJ
FULWHULD
([DFHUEDWLRQVZLOOEHFRQVLGHUHGPRGHUDWHLIWKH\UHVXOWLQ
x 8VHRIV\VWHPLFFRUWLFRVWHURLGVDQGRUDQWLELRWLFVIRUDWOHDVWWKUHHGD\VDVLQJOHGHSRW
LQMHFWDEOHGRVHRIFRUWLFRVWHURLGVZLOOEHFRQVLGHUHGHTXLYDOHQWWRDGD\FRXUVHRI
V\VWHPLFFRUWLFRVWHURLGV
([DFHUEDWLRQVZLOOEHFRQVLGHUHGVHYHUHLIWKH\UHVXOWLQ
x $QLQSDWLHQW&23'UHODWHGKRVSLWDOL]DWLRQGRFXPHQWDWLRQVWDWLQJWKDWWKHVXEMHFWZDV
KRVSLWDOL]HGIRUWKH&23'H[DFHUEDWLRQRUDUHFRUGRIWKHVXEMHFWEHLQJDGPLWWHGIRU
KRXUVWRDQREVHUYDWLRQDUHDWKHHPHUJHQF\GHSDUWPHQWRURWKHUHTXLYDOHQWKHDOWKFDUH
IDFLOLW\GHSHQGLQJRQWKHFRXQWU\DQGKHDOWKFDUHV\VWHP
x &23'UHODWHGGHDWK
([DFHUEDWLRQVZLOOEHFRQVLGHUHGPLOGLIWKH\GRQRWPHHWWKHUHTXLUHPHQWVWREHFODVVLILHGDV
PRGHUDWHRUVHYHUHEXWRWKHUZLVHIXOILOOWKHGHILQLWLRQRI&23'H[DFHUEDWLRQ
 'XUDWLRQRI&23'([DFHUEDWLRQ
)RUPRGHUDWHRUVHYHUHH[DFHUEDWLRQVWKHGXUDWLRQLVGHILQHGE\WKHOHQJWKRISUHVFULEHG
WUHDWPHQWZKHUHDVIRUPLOGH[DFHUEDWLRQVWKHGXUDWLRQLVGHILQHGE\WKHOHQJWKRIV\PSWRPV
)RUPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQVWKHVWDUWGDWHZLOOEHGHILQHGDVWKHVWDUWGDWHRI
SUHVFULEHGWUHDWPHQWZLWKDV\VWHPLFFRUWLFRVWHURLGRUV\VWHPLFDQWLELRWLFDQGWKHVWRSGDWH
ZLOOEHGHILQHGDVWKHODVWGD\RIHLWKHUSUHVFULEHGWUHDWPHQW,QRUGHUWRHQVXUHWKDWWKHVDPH
HYHQWLVQRWFRXQWHGWZLFHFRQFXUUHQWPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQVZLWKVWDUWDQG
VWRSGDWHVGD\VDSDUWZLOOEHFRQVLGHUHGWKHVDPHHYHQWDQGDVVLJQHGWKHPD[LPXP
VHYHULW\EHWZHHQWKHWZR
)RUPLOG&23'H[DFHUEDWLRQVVWDUWGDWHZLOOEHGHILQHGDVWKHRQVHWRIZRUVHQHGV\PSWRPV
DVUHFRUGHGE\WKHVXEMHFWLQWKHH'LDU\DQGWKHVWRSGDWHZLOOEHGHILQHGDVWKHODVWGD\RI
ZRUVHQHGV\PSWRPV,QRUGHUWRHQVXUHWKDWWKHVDPHHYHQWLVQRWFRXQWHGWZLFHPLOG&23'
H[DFHUEDWLRQVZLWKVWDUWDQGVWRSGDWHVGD\VDSDUWZLOOEHFRQVLGHUHGWKHVDPHHYHQW
 $SSURDFKIRU&DSWXULQJ&23'([DFHUEDWLRQV
$OOPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQVRFFXUULQJDIWHU9LVLWPXVWEHFDSWXUHGXVLQJ
WKH&23'([DFHUEDWLRQH&5)0LOG&23'H[DFHUEDWLRQVZLOOEHFDSWXUHGEDVHGRQ
V\PSWRPVDVUHFRUGHGE\WKHVXEMHFWLQWKHH'LDU\&23'H[DFHUEDWLRQVRIDQ\VHYHULW\ZLOO

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
EHFRQVLGHUHGH[SHFWHGVWXG\HQGSRLQWVDQGZLOOQRWEHUHSRUWHGDVDGYHUVHHYHQWV$(V
XQOHVVFRQVLGHUHGDVHULRXV$(6$(
6<037205(3257,1*
$QH'LDU\ZLOOEHXVHGWRFDSWXUHGDLO\V\PSWRPUHSRUWLQJ,IV\PSWRPVPHHWDVSHFLILF
WKUHVKROGLHRQHPDMRU&23'V\PSWRPDQGDWOHDVWRQHRWKHUPDMRURUPLQRUV\PSWRPIRU
FRQVHFXWLYHGD\VWKHH'LDU\JHQHUDWHVDOHUWVWRWKHVXEMHFWDQGWKHFOLQLFDOVLWH7KLVDOHUW
LVLQWHQGHGWRJHQHUDWHDFRQWDFWEHWZHHQWKHVXEMHFWDQGWKHFOLQLFDOLQYHVWLJDWRU7KH
FOLQLFDOLQYHVWLJDWRUPDNHVWKHGHFLVLRQWRHVFDODWHRULQLWLDWHWUHDWPHQWVWHURLGVDQGRU
DQWLELRWLFVDQGRUKRVSLWDOL]DWLRQV
&LUFXPVWDQFHVZLOORFFXUZKHUHV\PSWRPVDUHQRWFDSWXUHGLQWKHH'LDU\HJWHFKQLFDO
GLIILFXOWLHVUDSLGGHWHULRUDWLRQRUVXGGHQGHDWK,QWKHVHFDVHVWKH,QYHVWLJDWRURUGHVLJQHH
ZLOOHQWHUWKHLQIRUPDWLRQLQWRWKHH&5)WRFDSWXUHWKHV\PSWRPVUHODWHGWRD&23'
H[DFHUEDWLRQ
 ,QYHVWLJDWRUMXGJHG&23'([DFHUEDWLRQV
)RUHYHQWVZKLFKGRQRWPHHWWKHRXWOLQHGV\PSWRPFULWHULDIRUD&23'H[DFHUEDWLRQDQGRU
ZKHQV\PSWRPVKDYHDVKRUWHUGXUDWLRQWKH,QYHVWLJDWRUPXVWMXVWLI\WKHGHFLVLRQIRU
FRQVLGHULQJWKHHYHQWDQH[DFHUEDWLRQDQGUHFRUGLWRQWKHDSSURSULDWHH&5)$QH[DPSOH
ZRXOGEHZKHQV\PSWRPVRI&23'ZDUUDQWXUJHQWWUHDWPHQWGXHWRUDSLGRQVHWRUUDSLGO\
SURJUHVVLYHV\PSWRPV6XFKDVLWXDWLRQGRHVQRWDOORZHQRXJKWLPHIXOILOOWKHFULWHULDRI
V\PSWRPGXUDWLRQFRQVHFXWLYHGD\V,QWKHVHFDVHVWKH,QYHVWLJDWRUPD\GHILQHVXFK
DQHYHQWDVD&23'H[DFHUEDWLRQ$VFOLQLFDOSUHVHQWDWLRQVPD\YDU\DPRQJSDWLHQWVZLWK
&23'H[DFHUEDWLRQVGHILQHGE\DQ,QYHVWLJDWRUFDQEHVXSSRUWHGE\UHVSLUDWRU\V\PSWRPV
WKDWGRQRWVWULFWO\IXOILOODOOV\PSWRPUHTXLUHPHQWVDVGHILQHGHDUOLHUEXWMXVWLILFDWLRQDQG
FOLQLFDOUHOHYDQFHPXVWEHGRFXPHQWHGLQWKHH&5)
 6XEMHFW4XHVWLRQQDLUHV
6XEMHFWTXHVWLRQQDLUHVWREHFRPSOHWHGRQVLWHXWLOL]LQJVWXG\VXSSOLHGHOHFWURQLF
TXHVWLRQQDLUHGHYLFHVQRWWKHVXEMHFW¶VH'LDU\DWVSHFLILHGYLVLWVWKURXJKRXWWKHVWXG\DUH
&$7%',7',6*54DQG(4'/GHVFULEHGLQGHWDLOEHORZ:KHQHYHU%',7',
6*54DQGRU(4'/DUHREWDLQHGDWWKHVDPHYLVLWLWLVUHFRPPHQGHGWKDWWKH%',7',
EHFROOHFWHGILUVWIROORZHGLPPHGLDWHO\E\WKH6*54DQGWKH(4'/
7KH(;$&7TXHVWLRQQDLUHZLOOEHFDSWXUHGYLDWKHVXEMHFWH'LDU\UHIHUWR6HFWLRQ
 &KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH$VVHVVPHQW7HVW&$7
7KH&$7LVDVHOIDGPLQLVWHUHGTXHVWLRQQDLUHGHVLJQHGWRDVVHVVWKHFRQGLWLRQRIVXEMHFWV
DQGRYHUDOOLPSDFWRI&23'>-RQHV@6WXGLHVKDYHSURYHQWKDWWKH&$7TXHVWLRQQDLUH
KDVJRRGUHSHDWDELOLW\DQGGLVFULPLQDWLYHSURSHUWLHVVXJJHVWLQJWKDWLWLVVHQVLWLYHWR
WUHDWPHQWHIIHFWVDWDJURXSOHYHO6LQFHWKH&$7LVGHVLJQHGWRDVVHVVWKHLPSDFWRI&23'
RQWKHVXEMHFWE\PHDVXULQJRYHUDOOLPSDLUPHQWLWKDVPRGHUDWHFRUUHODWLRQVZLWKRWKHU
LQVWUXPHQWVVXFKDVWKH0RGLILHG0HGLFDO5HVHDUFK&RXQFLO'\VSQHD6FDOH6*54DQGWKH
PLQXWHZDONWHVW
6XEMHFWVZLOOFRPSOHWHWKH&$7UHIHUWR$SSHQGL[DW9LVLWDQGUHVXOWVDUHXVHGDVDQ
HQWU\FULWHULRQ7KH&$7VFRUHZLOOGHVFULEHWKHEXUGHQDQGV\PSWRPDWLFLPSDFWRI&23'
LQVXEMHFWVHQUROOHGLQWKHVWXG\

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 %DVHOLQH'\VSQHD,QGH[DQG7UDQVLWLRQ'\VSQHD,QGH[%',7',
'\VSQHDLVWKHSULPDU\V\PSWRPRI&23'DQGLWVUHOLHILVDQLPSRUWDQWJRDORIWKHUDS\,Q
WKHHYDOXDWLRQRISKDUPDFRWKHUDS\IRU&23'VHYHUDOLQVWUXPHQWVDUHDYDLODEOHWRSURYLGHD
GLVFULPLQDWLYHDQGHYDOXDWLYHDVVHVVPHQWRIG\VSQHD$PRQJWKHVHDUHWKH%',DQG7',
LQGLFHVZKLFKDVVHVVEUHDWKOHVVQHVVLQFRPSRQHQWVUHODWHGWRIXQFWLRQDOLPSDLUPHQW
PDJQLWXGHRIWDVNDQGPDJQLWXGHRIHIIRUW
$VWKHQDPHLPSOLHV%',PHDVXUHVDVXEMHFW¶VEUHDWKOHVVQHVVDWEDVHOLQHSULRUWRLQLWLDWLRQ
RIVWXG\PHGLFDWLRQ7KHUHOLDELOLW\DQGYDOLGLW\RIWKH%',DVVHVVPHQWKDYHEHHQUHSRUWHG
>0DKOHU@DQGFRQILUPHGDJDLQVWRWKHUUHODWHGPHDVXUHV>:LWHN@7KH
,QWHUYLHZHUDGPLQLVWHUHGUDWLQJRIVHYHULW\RIG\VSQHDDWDVLQJOHVWDWHSURYLGHVD
PXOWLGLPHQVLRQDOPHDVXUHPHQWRIG\VSQHDEDVHGRQWKUHHFRPSRQHQWVWKDWHYRNHG\VSQHDLQ
DFWLYLWLHVRIGDLO\OLYLQJLQV\PSWRPDWLFLQGLYLGXDOV7KH%',VFRUHUDQJHVIURPYHU\
VHYHUHLPSDLUPHQWWRQRLPSDLUPHQWIRUHDFKGRPDLQDQGDUHVXPPHGWRGHWHUPLQHWKH
%',IRFDOVFRUHWRLHWKHORZHUWKHVFRUHWKHZRUVHWKHVHYHULW\RIG\VSQHD7KH
DSSURSULDWHODQJXDJHYHUVLRQRIWKHTXHVWLRQQDLUHVZLOOEHXVHG7KHTXHVWLRQQDLUHFDQEH
IRXQGLQLQ$SSHQGL[
7KH7',PHDVXUHVFKDQJHVLQG\VSQHDVHYHULW\IURPEDVHOLQHDVHVWDEOLVKHGDWEDVHOLQHE\
WKH%',7KHWKUHHFRPSRQHQWVRIWKH7',DUH&KDQJHLQ)XQFWLRQDO,PSDLUPHQW&KDQJHLQ
0DJQLWXGHRI7DVNDQG&KDQJHLQ0DJQLWXGHRI(IIRUW7KH7',VFRUHUDQJHV
IURPPDMRUGHWHULRUDWLRQWRPDMRULPSURYHPHQWIRUHDFKFRPSRQHQW7KHVXPRI
DOOFRPSRQHQWV\LHOGVWKH7',IRFDOVFRUHWRZKHUHDORZHUVFRUHUHIOHFWVDJUHDWHU
GHWHULRUDWLRQLQG\VSQHDVHYHULW\
7KH%',7',TXHVWLRQQDLUHZLOOEHFDSWXUHGRQWKH6SRQVRUSURYLGHGWDEOHWDQGQRWLQWKH
H'LDU\$OZD\VDGPLQLVWHUWKH%',7',TXHVWLRQQDLUHSULRUWRVWXG\GUXJDGPLQLVWUDWLRQDQG
EHIRUHDQ\RWKHUVXEMHFWTXHVWLRQQDLUHVWRDYRLGLQIOXHQFLQJWKHVXEMHFW¶VUHVSRQVH7KH
%',7',TXHVWLRQQDLUHLVDNH\RXWFRPHLQPDQ\FRXQWULHVIRUPDUNHWLQJDSSURYDO
7KH%',ZLOOEHFRPSOHWHGDW9LVLWSULRUWRVWXG\GUXJDGPLQLVWUDWLRQ7KH7',ZLOOEH
FRPSOHWHGSULRUWRVWXG\GUXJDGPLQLVWUDWLRQDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLWDQGLI
WKHVXEMHFWGLVFRQWLQXHVWUHDWPHQWZLWKGUDZVFRQVHQW
 6W*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH6*54
7KH6*54ZHHNUHFDOOWRROZLOOEHXVHGWRSURYLGHWKHKHDOWKVWDWXVKHDOWKUHODWHG4XDOLW\
RI/LIH4R/PHDVXUHPHQWVUHIHUWR$SSHQGL[7KHDSSURSULDWHODQJXDJHYHUVLRQRIWKH
TXHVWLRQQDLUHVZLOOEHDYDLODEOHLQHDFKSDUWLFLSDWLQJFRXQWU\7KHVXEMHFWVKRXOGFRPSOHWH
WKHTXHVWLRQQDLUHLQDTXLHWDUHDDQGEHDOORZHGWRDVNTXHVWLRQVKRZHYHUVLWHVWDIIVKRXOG
WDNHFDUHQRWWRLQIOXHQFHWKHVXEMHFW¶VUHVSRQVHV7KHVXEMHFWZLOOEHLQVWUXFWHGWRSURYLGH
WKHPRVWDFFXUDWHDQGEHVWLQGLYLGXDOL]HGUHVSRQVHDERXWKRZWKH\IHOWUHJDUGLQJWKHLUKHDOWK
VWDWXVKHDOWKUHODWHG4R/RYHUWKHODVWIRXUZHHNVLHVLQFHWKHVWXG\YLVLW7KH
TXHVWLRQQDLUHVKRXOGEHFKHFNHGIRUFRPSOHWHQHVVDQGFROOHFWHGSULRUWRVWXG\GUXJ
DGPLQLVWUDWLRQ$WVXEVHTXHQWYLVLWVVXEMHFWVPD\QRWUHYLHZWKHLUSUHYLRXVUHVSRQVHV
7KH6*54FRQWDLQVLWHPVGLYLGHGLQWRWKUHHGRPDLQV6\PSWRPVFRQFHUQHGZLWK
UHVSLUDWRU\V\PSWRPVWKHLUIUHTXHQF\DQGVHYHULW\$FWLYLW\FRQFHUQHGZLWKDFWLYLWLHVWKDW
FDXVHRUDUHOLPLWHGE\EUHDWKOHVVQHVVDQG,PSDFWVZKLFKFRYHUVDUDQJHRIDVSHFWV
FRQFHUQHGZLWKVRFLDOIXQFWLRQLQJDQGSV\FKRORJLFDOGLVWXUEDQFHVUHVXOWLQJIURPDLUZD\
GLVHDVH$WRWDOVFRUHFRPELQLQJHDFKGRPDLQZLOOEHFDOFXODWHG,QHDFKFDVHWKHORZHVW
SRVVLEOHYDOXHLV]HURDQGWKHKLJKHVWLV+LJKHUYDOXHVFRUUHVSRQGWRJUHDWHULPSDLUPHQW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
RI4R/&RPSOHWHGTXHVWLRQQDLUHVZLOOEHUHYLHZHGDQGH[DPLQHGE\WKH,QYHVWLJDWRURU
GHVLJQHHEHIRUHWKHFOLQLFDOH[DPLQDWLRQIRUUHVSRQVHVZKLFKPD\LQGLFDWHSRWHQWLDO$(VRU
6$(V7KH,QYHVWLJDWRUVKRXOGDOVRORRNIRUDQ\XQVROLFLWHGFRPPHQWVZULWWHQE\WKH
VXEMHFWZKLFKPD\QHHGWREHFDSWXUHGHOVHZKHUHLQWKHH&5),QYHVWLJDWRUVVKRXOGQRW
HQFRXUDJHVXEMHFWVWRFKDQJHWKHUHVSRQVHVUHSRUWHGLQWKHTXHVWLRQQDLUH
7KH6*54ZLOOEHFDSWXUHGRQWKH6SRQVRUSURYLGHGWDEOHWDQGQRWLQWKHH'LDU\,WLVWREH
FRPSOHWHGSULRUWRVWXG\GUXJDGPLQLVWUDWLRQDW9LVLWDQGDWHDFKLQFOLQLFSRVW
UDQGRPL]DWLRQYLVLWDQGLIWKHVXEMHFWGLVFRQWLQXHVWUHDWPHQWZLWKGUDZVFRQVHQW
 (XURSHDQ4XDOLW\RI/LIH'LPHQVLRQV4XHVWLRQQDLUH(4'/
7KH(4'/LVDOHYHOVWDQGDUGL]HGLQVWUXPHQWPHDVXULQJKHDOWKRXWFRPHVDQGLV
DSSOLFDEOHWRDZLGHUDQJHRIKHDOWKFRQGLWLRQVWUHDWPHQWVWKHUHE\SURYLGLQJDVLPSOH
GHVFULSWLYHSURILOHDQGDVLQJOHLQGH[YDOXHIRUKHDOWKVWDWXV>(XUR4RO@
7KH(4'/FRQVLVWVRIWZRDVVHVVPHQWVDGHVFULSWLYHV\VWHPDQGDYLVXDODQDORJXHVFDOH
9$67KHGHVFULSWLYHV\VWHPLVFRPSULVHGRIWKHIROORZLQJILYHGLPHQVLRQVPRELOLW\
VHOIFDUHXVXDODFWLYLWLHVSDLQGLVFRPIRUWDQGDQ[LHW\GHSUHVVLRQZKHUHHDFKGLPHQVLRQKDV
ILYHVHYHULW\OHYHOVQRSUREOHPVVOLJKWSUREOHPVPRGHUDWHSUREOHPVVHYHUHSUREOHPVDQG
H[WUHPHSUREOHPV
7KH9$6UHFRUGVWKHVXEMHFW¶VVHOIUDWHGKHDOWKRQDFPYHUWLFDOVFDOHZLWK
HQGSRLQWVODEHOHG³WKHEHVWKHDOWK\RXFDQLPDJLQH´DQG³WKHZRUVWKHDOWK\RXFDQ
LPDJLQH´7KLVVFRUHLVXVHGDVDTXDQWLWDWLYHPHDVXUHRI4R/ZKHUHDKLJKHUVFRUH
FRUUHVSRQGVWRDEHWWHUKHDOWKVWDWHDQGYLFHYHUVD
7KH(4'/UHIHUWR$SSHQGL[ZLOOEHFDSWXUHGRQWKH6SRQVRUSURYLGHGWDEOHWDQGQRW
LQWKHH'LDU\,WLVWREHFRPSOHWHGSULRUWRVWXG\GUXJDGPLQLVWUDWLRQDW9LVLWDQGDWHDFK
LQFOLQLFSRVWUDQGRPL]DWLRQYLVLWDQGLIWKHVXEMHFWGLVFRQWLQXHVWUHDWPHQWZLWKGUDZV
FRQVHQW
 ([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO(;$&7
7KH(;$&7LVDLWHPLQVWUXPHQWGHYHORSHGWRDVVHVVWKHIUHTXHQF\VHYHULW\DQGGXUDWLRQ
RI&23'H[DFHUEDWLRQV-RQHV7KLVLQVWUXPHQWZDVGHYHORSHGIRUGDLO\DWKRPH
DGPLQLVWUDWLRQXVLQJDKDQGKHOGHOHFWURQLFGHYLFH5HVSRQGHQWVZLOOEHLQVWUXFWHGWR
FRQVLGHUWKHLUH[SHULHQFHVWKDWGD\LHWRGD\ZKHQFRPSOHWLQJWKHGLDU\HYHU\HYHQLQJ
SULRUWREHGWLPH7KHLQVWUXPHQWLQFOXGHVDVVHVVPHQWVRIEUHDWKOHVVQHVVLWHPVFRXJKDQG
VSXWXPLWHPVFKHVWV\PSWRPVLWHPVDQGIRXUDGGLWLRQDOLWHPVGLIILFXOW\ZLWK
VSXWXPWLUHGRUZHDNVOHHSGLVWXUEDQFHDQGSV\FKRORJLFDOVWDWH
7KHGDLO\(;$&7WRWDOVFRUHZLOOEHFRPSXWHGDFURVVWKHLWHPVZLWKDUDQJHRI
DQGZKHUHKLJKHUVFRUHVDUHLQGLFDWLYHRIJUHDWHUVHYHULW\7RWDOVFRUHFKDQJHVDUHXVHGWR
LGHQWLI\WKHRQVHWDQGUHFRYHU\IURPDQ(;$&7GHILQHGH[DFHUEDWLRQHYHQW
7KH(56LVDQLWHPVXEVHWRI(;$&7ZKLFKHYDOXDWHVWKHVHYHULW\RIWKHUHVSLUDWRU\
V\PSWRPVDVVRFLDWHGZLWK&23'>-RQHV@7KH(56ZDVGHVLJQHGWREHFDSWXUHGDV
SDUWRIWKHGDLO\(;$&7DVVHVVPHQW2Q0DUFKWKH(;$&75HVSLUDWRU\
6\PSWRPV6FDOHZDVUHQDPHGWKH(YDOXDWLQJ5HVSLUDWRU\6\PSWRPV(56PHDVXUH:KHQ
UHIHUULQJVSHFLILFDOO\WRLWVXVHLQ&23'WKHSURSRVHGFRQWH[WRIXVHIRUTXDOLILFDWLRQWKH
IXOOQDPHLVQRZ³(YDOXDWLQJ5HVSLUDWRU\6\PSWRPVLQ&23'(56&23'6XPPDWLRQ
RI(56LWHPUHVSRQVHVSURGXFHVDWRWDOVFRUHUDQJLQJIURPWRZLWKKLJKHUVFRUHV
LQGLFDWLQJJUHDWHUVHYHULW\,QDGGLWLRQWRWKHWRWDOVFRUHV\PSWRPGRPDLQVFRUHVFDQEH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
FDOFXODWHGIRUEUHDWKOHVVQHVVLWHPVVFRUHUDQJH±FRXJKDQGVSXWXPLWHPVVFRUH
UDQJH±DQGFKHVWV\PSWRPVLWHPVVFRUHUDQJH±E\VXPPLQJWKHUHVSRQVHVRI
LWHPVZLWKLQDUHVSHFWLYHGRPDLQ$VZLWKWKHWRWDOVFRUHKLJKHUGRPDLQVFRUHVLQGLFDWH
JUHDWHUVHYHULW\
7KH(;$&7UHIHUWR$SSHQGL[ZLOOEHFRPSOHWHGGDLO\E\WKHVXEMHFWDVSDUWRIWKH
H'LDU\DVVHVVPHQWV

6DIHW\$VVHVVPHQWV
6DIHW\DVVHVVPHQWVIRUWKLVVWXG\DUHSK\VLFDOH[DPLQDWLRQILQGLQJVYLWDOVLJQV(&*VDQG
FOLQLFDOODERUDWRU\WHVWVLQDGGLWLRQWRUHFRUGLQJ$(VDQG6$(V
 0HGLFDO6XUJLFDO+LVWRU\DQG3K\VLFDO([DPLQDWLRQ
0HGLFDOKLVWRU\LQFOXGLQJVSHFLILFFDUGLRYDVFXODUKLVWRU\GHWDLOVZLOOEHFROOHFWHGDW9LVLW
DQGXSGDWHGWKURXJKRXWWKH6FUHHQLQJ3HULRG
7KHQXPEHURI&23'H[DFHUEDWLRQVUHTXLULQJRUDOVWHURLGVDQGRURUDODQWLELRWLFVRU
KRVSLWDOL]DWLRQZLWKLQPRQWKVRI9LVLWZLOOEHFROOHFWHG
$FRPSOHWHSK\VLFDOH[DPLQDWLRQZLOOEHSHUIRUPHGDW9LVLWVDQG:HHNRU)LQDO
6WXG\9LVLWRULIWKHVXEMHFWGLVFRQWLQXHVWUHDWPHQWZLWKGUDZVFRQVHQWDQGLQFOXGHVWKH
IROORZLQJ
x *HQHUDODSSHDUDQFHVNLQKHDGH\HVHDUVQRVHWKURDWQHFNLQFOXGLQJWK\URLG
O\PSKQRGHVFKHVWKHDUWDEGRPHQH[WUHPLWLHVDQGQHUYRXVV\VWHP
x :HLJKWZLOOEHPHDVXUHGDW9LVLWVDQG:HHNRU)LQDO6WXG\9LVLWRQO\RU
WKH7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLW+HLJKWZLOOEHPHDVXUHGDW
9LVLWRQO\
 9LWDO6LJQ0HDVXUHPHQWV
$OOYLWDOVLJQPHDVXUHPHQWVLQFOXGLQJKHDUWUDWH+5V\VWROLFEORRGSUHVVXUH6%3
GLDVWROLFEORRGSUHVVXUH'%3DQGWHPSHUDWXUHZLOOEHREWDLQHGDIWHUWKHVXEMHFWKDVUHVWHG
IRUPLQXWHVLQHLWKHUWKHVXSLQHRUVHDWHGSRVLWLRQ9LWDOVLJQVZLOOEHPHDVXUHGDVIROORZV
x 9LVLWDVLQJOHPHDVXUHPHQWRIYLWDOVLJQVZLOOEHFROOHFWHG
x 9LVLWDVLQJOHPHDVXUHPHQWRIYLWDOVLJQVPHDVXUHGPLQXWHVSUHDQG
PLQXWHVSRVWEURQFKRGLODWRUFRPSOHWHGIRU5HYHUVLELOLW\7HVWLQJ
x 9LVLWWZRYLWDOVLJQPHDVXUHPHQWVDWOHDVWILYHPLQXWHVDSDUWZLOOEHFROOHFWHG
DSSUR[LPDWHO\PLQXWHVSUHGRVHDQGPLQXWHVSRVWGRVH
x $OOUHPDLQLQJLQFOLQLFVWXG\YLVLWV9LVLWVWR>:HHNRU)LQDO6WXG\9LVLW@
RQHYLWDOVLJQPHDVXUHPHQWZLOOEHFROOHFWHGDSSUR[LPDWHO\PLQXWHVSUHGRVHDQG
PLQXWHVSRVWGRVH
1RWH$VLQJOHWHPSHUDWXUHUHDGLQJZLOOEHFROOHFWHGDW9LVLWDQGSUHGRVHDWDOOYLVLWV
WHPSHUDWXUHUHDGLQJZLOOQRWEHUHSHDWHGSRVWGRVHXQOHVVFOLQLFDOO\LQGLFDWHG
)RUVXEMHFWVZKRKDYHQRWUHDFKHG:HHNZKHQWKHVWXG\HQGVDQGIRUVXEMHFWVZKR
GLVFRQWLQXHUDQGRPL]HGWUHDWPHQWZLWKGUDZFRQVHQWDVLQJOHPHDVXUHPHQWRIYLWDOVLJQV
ZLOOEHREWDLQHGDWWKH)LQDO6WXG\9LVLWDQG7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO
9LVLWUHVSHFWLYHO\

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 /HDG(OHFWURFDUGLRJUDP
7RVWDQGDUGL]H(&*FROOHFWLRQDOOVLWHVZLOOEHSURYLGHGZLWKLGHQWLFDO(&*HTXLSPHQW
*OREDO,QVWUXPHQWDWLRQ055HFRUGHURU*OREDO,QVWUXPHQWDWLRQ05/LWH5HFRUGHU
*OREDO,QVWUXPHQWDWLRQ6\UDFXVH1HZ<RUN86ZLWKFXVWRPL]HGVWXG\VSHFLILFVRIWZDUH
$OOVWXG\VWDIIUHVSRQVLEOHIRUSHUIRUPLQJ(&*FROOHFWLRQZLOOUHFHLYHLGHQWLFDOGHWDLOHG
WUDLQLQJDWWKH,QYHVWLJDWRUPHHWLQJDVZHOODVVLWHSKRQHWUDLQLQJVHVVLRQV(DFKVLWHLV
UHTXLUHGWRGHPRQVWUDWHSURILFLHQF\LQWKHXVHRIWKHHTXLSPHQWDQGWKHDELOLW\WRSHUIRUP
WHFKQLFDOO\DFFHSWDEOH(&*VSULRUWRSHUIRUPLQJRQVWXG\VXEMHFWV$IWHUHDFKWHVWKDVEHHQ
SHUIRUPHGWKH(&*GDWDZLOOEHWUDQVPLWWHGHOHFWURQLFDOO\IRUFHQWUDOL]HGTXDOLW\DVVXUDQFH
UHYLHZ
)HHGEDFNRQWKHTXDOLW\RIWKH(&*V
ZLOOEHSURYLGHGWRWKHLQYHVWLJDWLRQDOVLWHYLDDVLWHTXDOLILFDWLRQIRUP
7KH(&*SDUDPHWHUVWREHDVVHVVHGLQFOXGH+535LQWHUYDO456D[LV456LQWHUYDODQG
4747F)LQWHUYDO
47LQWHUYDOVDQGFDOFXODWHG47F)LQWHUYDOVZLOOEHUHYLHZHGDQGFKHFNHGIRUJURVV
LQDFFXUDFLHVE\WKH,QYHVWLJDWRURUGHVLJQDWHG(&*UHYLHZHU,IWKHFDOFXODWHG47F)
LQWHUYDOVDUH!PVHFDQGKDYHLQFUHDVHGE\PVHFRUPRUHRYHUWKHEDVHOLQHYDOXHWKH
,QYHVWLJDWRUZLOOPDNHDGHWHUPLQDWLRQRQWKHVXLWDELOLW\RIFRQWLQXLQJWKHVXEMHFWLQWKH
VWXG\,I47F)LQWHUYDOSURORQJDWLRQH[FHHGLQJWKHVHOLPLWVLVYHULILHGGXULQJWUHDWPHQWWKH
VXEMHFW¶VPHGLFDOKLVWRU\VKRXOGEHH[DPLQHGFORVHO\IRUULVNIDFWRUVWKDWPD\KDYH
FRQWULEXWHGWRWKHHYHQWLQFOXGLQJHYLGHQFHRISULRUJHQRW\SLQJIRUKHUHGLWDU\ORQJ47
V\QGURPHVLIDSSURSULDWH
$Q\VLJQRIDUUK\WKPLDVKRXOGEHQRWHG'XULQJWUHDWPHQWDQ\LQGLFDWLRQRI7RUVDGHGH
3RLQWHVPXVWEHUHFRUGHGDVDQ$(DQGUHSRUWHGWRWKH6SRQVRU0HGLFDO0RQLWRU
$OOVXFKVXEMHFWVLQFOXGLQJVXEMHFWVZLWKFDUGLDFDUUK\WKPLDVVKRXOGEHPRQLWRUHGFORVHO\
,IDSSURSULDWH(&*PRQLWRULQJVKRXOGEHSHUIRUPHGXQWLOWKH47DQG47F)LQWHUYDODQG
ZDYHIRUPPRUSKRORJ\KDYHUHWXUQHGWRQRUPDO,IWKHSURORQJDWLRQRUDEQRUPDOUK\WKP
SHUVLVWVWKH6SRQVRU0HGLFDO0RQLWRUPXVWEHFRQWDFWHGLPPHGLDWHO\
(&*VZLOOEHREWDLQHGWKURXJKRXWWKHFRQGXFWRIWKHVWXG\DVIROORZV
 $VLQJOH(&*ZLOOEHFROOHFWHGDW9LVLWDQGZKHQWKHVXEMHFWGLVFRQWLQXHV
WUHDWPHQWZLWKGUDZVFRQVHQW
7LPHG(&*VZLOOEHREWDLQHGDVIROORZV
x $W9LVLW5DQGRPL]DWLRQ9LVLWSUHGRVH(&*VZLOOEHREWDLQHGWZLFHDWOHDVW
PLQXWHVDSDUWZLWKLQPLQXWHVRIGRVLQJ
x $W9LVLWVDQG:HHNRU)LQDO6WXG\9LVLWSUHGRVH(&*VZLOOEHREWDLQHG
RQFHZLWKLQPLQXWHVSULRUWRGRVLQJ
 &OLQLFDO/DERUDWRU\7HVWV
&OLQLFDOVDIHW\ODERUDWRU\WHVWVZLOOEHDQDO\]HGE\DFHQWUDOODERUDWRU\DFFRUGLQJWR
VWDQGDUGL]HGYDOLGDWHGDVVD\V7KHODERUDWRU\ZLOOVXSSO\GHWDLOHGSURFHGXUHVIRUWKH
SUHSDUDWLRQDQGFROOHFWLRQRIEORRGDQGXULQHVDPSOHVDORQJZLWKDOOFRQWDLQHUVQHHGHGIRU
WKHLUFROOHFWLRQ
$OOFOLQLFDOODERUDWRU\WHVWVKHPDWRORJ\FOLQLFDOFKHPLVWU\DQGXULQDO\VLVZLOOEHFROOHFWHG
DW9LVLWDQGSULRUWRGRVLQJDW9LVLWVDQG:HHNRU)LQDO6WXG\9LVLWRULIWKH
VXEMHFWZLWKGUDZVFRQVHQWGLVFRQWLQXHVWUHDWPHQW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 +HPDWRORJ\
+HPRJORELQKHPDWRFULWUHGEORRGFHOOFRXQWZKLWHEORRGFHOOFRXQWZLWKGLIIHUHQWLDO
HRVLQRSKLOVDQGSODWHOHWFRXQWZLOOEHFROOHFWHGDW9LVLWDQGSULRUWRGRVLQJDW9LVLWV
DQG:HHNRU)LQDO6WXG\9LVLWRULIWKHVXEMHFWZLWKGUDZVFRQVHQWGLVFRQWLQXHV
WUHDWPHQW
 &OLQLFDO&KHPLVWU\
$OEXPLQDONDOLQHSKRVSKDWDVHWRWDOELOLUXELQEORRGXUHDQLWURJHQ%81FDOFLXPWRWDO
FKROHVWHUROPDJQHVLXPSKRVSKDWHVRGLXPSRWDVVLXPFKORULGHFUHDWLQLQHJDPPD
JOXWDP\OWUDQVIHUDVHEORRGJOXFRVHWRWDOSURWHLQWULJO\FHULGHVELFDUERQDWHDVSDUWDWH
DPLQRWUDQVIHUDVH$67DQGDODQLQHDPLQRWUDQVIHUDVH$/7ZLOOEHFROOHFWHGDW9LVLWDQG
SULRUWRGRVLQJDW9LVLWVDQG:HHNRU)LQDO6WXG\9LVLWRULIWKHVXEMHFW
ZLWKGUDZVFRQVHQWGLVFRQWLQXHVWUHDWPHQW
5HIHUWR7DEOHIRUDOLVWRIVWXG\DVVRFLDWHGODERUDWRU\WHVWV
7DEOH&OLQLFDO/DERUDWRU\7HVWV
+HPDWRORJ\
+HPRJORELQ
0HDQFRUSXVFXODUKHPRJORELQ
+HPDWRFULW
0HDQFRUSXVFXODUKHPRJORELQ
FRQFHQWUDWLRQ
:KLWHEORRGFHOOFRXQWZLWKGLIIHUHQWLDO
0HDQFRUSXVFXODUYROXPH
5HGEORRGFHOOFRXQW
(RVLQRSKLOV
3ODWHOHWFRXQW
&OLQLFDO%ORRG&KHPLVWU\

/LYHU(Q]\PHDQG2WKHU/LYHU)XQFWLRQ7HVWV
2WKHU&OLQLFDO%ORRG
&KHPLVWU\
$ODQLQHDPLQRWUDQVIHUDVH
$OEXPLQ
$VSDUWDWHDPLQRWUDQVIHUDVH
%ORRG8UHD1LWURJHQ%81
$ONDOLQHSKRVSKDWDVH
&DOFLXPD
%LOLUXELQWRWDO
&KORULGHD
*DPPDJOXWDP\OWUDQVIHUDVH
&KROHVWHURO

%LFDUERQDWH

&UHDWLQLQHD

*OXFRVHD

0DJQHVLXP

3RWDVVLXPD

3KRVSKDWH

3URWHLQWRWDO

6RGLXPD

7ULJO\FHULGHV
8ULQDO\VLV
0DFURVFRSLFH[DPLQDWLRQLQFOXGLQJVSHFLILFJUDYLW\S+SURWHLQJOXFRVHNHWRQHVEORRGDQGXURELOLQRJHQ
2WKHU7HVWV
3UHJQDQF\WHVWZRPHQRIFKLOGEHDULQJSRWHQWLDORQO\VHUXPK&*DW9LVLWDQG9LVLW:HHNRU)LQDO6WXG\9LVLW
RU7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLW
&UHDWLQLQHFOHDUDQFHZLOOEHHVWLPDWHGE\WKH&.'(3,IRUPXOD>/HYH\@
$EEUHYLDWLRQV&.'(3, &KURQLF.LGQH\'LVHDVH(SLGHPLRORJ\&ROODERUDWLRQK&* KXPDQFKRULRQLFJRQDGRWURSLQ
D3DUDPHWHUVLQFOXGHGLQWKH%DVLF0HWDEROLF3DQHO

 8ULQDO\VLV
5RXWLQHPDFURVFRSLFXULQDO\VLVIRUVSHFLILFJUDYLW\S+SURWHLQJOXFRVHNHWRQHVEORRGDQG
XURELOLQRJHQZLOOEHPHDVXUHG%DVHGRQPDFURVFRSLFUHVXOWVDPLFURVFRSLFH[DPLQDWLRQ
PD\EHSHUIRUPHGLIZDUUDQWHG8ULQDO\VLVZLOOEHFROOHFWHGDW9LVLWDQGSULRUWRGRVLQJDW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
9LVLWVDQG:HHNRU)LQDO6WXG\9LVLWRULIWKHVXEMHFWZLWKGUDZV
FRQVHQWGLVFRQWLQXHVWUHDWPHQW
 3UHJQDQF\7HVW
$VHUXPSUHJQDQF\WHVWZLOOEHSHUIRUPHGDWWKHFHQWUDOODERUDWRU\LQSUHPHQRSDXVDO
ZRPHQZKRDUHQRWVXUJLFDOO\VWHULOHDW9LVLWDQG9LVLW:HHNRU)LQDO6WXG\9LVLW
RUWKH7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLW$XULQHSUHJQDQF\WHVWZLOOEH
SHUIRUPHGRQVLWHDW9LVLWDQG9LVLW7DEOH

$GYHUVH(YHQWV
 3HUIRUPLQJ$GYHUVH(YHQW$($VVHVVPHQWV
7KH,QYHVWLJDWRULVUHVSRQVLEOHIRUSURPSWO\GRFXPHQWLQJDQGUHSRUWLQJDOO$(VREVHUYHG
GXULQJWKHVWXG\LQWKHVXEMHFW¶VH&5)DQGRQWKH$(5HSRUWLQJ)RUP,IWKH$(LV
XQH[SHFWHGWKH,QYHVWLJDWRUVKRXOGUHSRUWWKH$(LPPHGLDWHO\WRWKH6SRQVRU,QDGGLWLRQ
FHUWDLQ$(VDVGHVFULEHGLQ6HFWLRQDUHFODVVLILHGDVµVHULRXV¶DQGPXVWEHUHSRUWHG
QRODWHUWKDQKRXUVDIWHUWKH,QYHVWLJDWRUUHFRJQL]HVFODVVLILHVWKHHYHQWDVD6HULRXV
$GYHUVH(YHQW6$(WRWKH6SRQVRURULWVGHVLJQHH
,QWKHFDVHRI6$(VDIWHUGLVFXVVLQJWKHGHWDLOVRIWKHHYHQWWKH,QYHVWLJDWRUDQGWKH0HGLFDO
0RQLWRUPD\GLVFRQWLQXHWKHVXEMHFWIURPUDQGRPL]HGWUHDWPHQW
 $('HILQLWLRQV
7KHIROORZLQJGHILQLWLRQVRIWHUPVDUHJXLGHGE\WKH,QWHUQDWLRQDO&RQIHUHQFHRQ
+DUPRQLVDWLRQRI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI3KDUPDFHXWLFDOVIRU+XPDQ
8VH,&+WKH86&RGHRI)HGHUDO5HJXODWLRQV&)5DQG(8'LUHFWLYH
(&DQGDUHLQFOXGHGKHUHLQ
$Q$(LVDQ\XQWRZDUGPHGLFDORFFXUUHQFHDVVRFLDWHGZLWKWKHXVHRIDGUXJLQKXPDQV
ZKHWKHURUQRWFRQVLGHUHGGUXJUHODWHG$Q$( DOVRUHIHUUHGWRDVDQDGYHUVHH[SHULHQFH
FDQEHDQ\XQIDYRUDEOHDQGXQLQWHQGHGVLJQHJDQDEQRUPDOODERUDWRU\ILQGLQJV\PSWRP
RUGLVHDVHWHPSRUDOO\DVVRFLDWHGZLWKWKHXVHRIDGUXJZLWKRXWDQ\MXGJPHQWDERXW
FDXVDOLW\$Q$(FDQDULVHIURPDQ\XVHRIWKHGUXJHJRIIODEHOXVHXVHLQFRPELQDWLRQ
ZLWKDQRWKHUGUXJDQGIURPDQ\URXWHRIDGPLQLVWUDWLRQIRUPXODWLRQRUGRVHLQFOXGLQJDQ
RYHUGRVH
$GYHUVHHYHQWVLQFOXGHEXWDUHQRWOLPLWHGWR
 $Q\V\PSWRPRUFRQGLWLRQQRWSUHYLRXVO\UHSRUWHGE\WKHVXEMHFWPHGLFDOKLVWRU\
 $QH[DFHUEDWLRQRIDSUHH[LVWLQJV\PSWRPRUFRQGLWLRQ
 $VLJQLILFDQWLQFUHDVHLQIUHTXHQF\RULQWHQVLW\RIDSUHH[LVWLQJHSLVRGLFHYHQWRU
FRQGLWLRQ
 $GUXJLQWHUDFWLRQ
 $FRQGLWLRQILUVWGHWHFWHGRUGLDJQRVHGDIWHUVWXG\GUXJDGPLQLVWUDWLRQHYHQWKRXJKLW
PD\KDYHEHHQSUHVHQWSULRUWRWKHVWDUWRIWKHVWXG\

$Q$(GRHVQRWLQFOXGH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 0HGLFDORUVXUJLFDOSURFHGXUHVHJVXUJHU\HQGRVFRS\WRRWKH[WUDFWLRQEORRG
WUDQVIXVLRQWKHFRQGLWLRQWKDWOHDGVWRWKHSURFHGXUHLVDQ$(HJEOHHGLQJHVRSKDJHDO
YDULFHVGHQWDOFDULHV
 2YHUGRVHRIHLWKHUVWXG\GUXJRUFRQFXUUHQWPHGLFDWLRQZLWKRXWDQ\FOLQLFDOVLJQVRU
V\PSWRPV
 $EQRUPDOODERUDWRU\YDOXHVWKDWDUHQRWFOLQLFDOO\VLJQLILFDQWLIDFFRPSDQLHGE\
VLJQVV\PSWRPVWKHVLJQVRUV\PSWRPVDUHFRQVLGHUHGDQ$(
 3UH5DQGRPL]DWLRQ$(V
$(VRFFXUULQJIURPWKHWLPHWKHVXEMHFWVLJQVLQIRUPHGFRQVHQWXQWLOWKHVXEMHFWLV
UDQGRPL]HGZLOOEHVXPPDUL]HGDVPHGLFDOKLVWRU\DQGQRWDVDQ$(XQOHVVWKHHYHQWPHHWV
WKHGHILQLWLRQRIDQ6$(DVGHILQHGLQ6HFWLRQ
 6HYHULW\
7KH,QYHVWLJDWRUPXVWFDWHJRUL]HWKHVHYHULW\RIHDFK$(DFFRUGLQJWRWKHIROORZLQJ
JXLGHOLQHV
MildDVVRFLDWHGZLWKQROLPLWDWLRQRIXVXDODFWLYLWLHVRURQO\VOLJKWGLVFRPIRUWJHQHUDOO\QRW
UHTXLULQJDOWHUDWLRQRUFHVVDWLRQRIVWXG\GUXJDGPLQLVWUDWLRQDQGRUQRWQHHGLQJWKHUDSHXWLF
LQWHUYHQWLRQ
ModerateDVVRFLDWHGZLWKOLPLWDWLRQRIXVXDODFWLYLWLHVRUVLJQLILFDQWGLVFRPIRUWJHQHUDOO\
UHTXLULQJDOWHUDWLRQRUFHVVDWLRQRIVWXG\GUXJDGPLQLVWUDWLRQDQGRUUHTXLULQJWKHUDSHXWLF
LQWHUYHQWLRQ
SevereDVVRFLDWHGZLWKLQDELOLW\RIVXEMHFWWRFDUU\RXWXVXDODFWLYLWLHVRUYHU\PDUNHG
GLVFRPIRUWFRQVLGHUHGWREHOLIHWKUHDWHQLQJUHVXOWLQJLQVLJQLILFDQWGLVDELOLW\RULQFDSDFLW\
DQGUHTXLULQJWKHUDSHXWLFLQWHUYHQWLRQ
 5HODWLRQVKLSWR6WXG\GUXJ
7KHLQYHVWLJDWRUZLOODVVHVVFDXVDOUHODWLRQVKLSEHWZHHQLQYHVWLJDWLRQDOSURGXFWDQGHDFK$(
DQGDQVZHU\HVQRWRWKHTXHVWLRQµ'R\RXFRQVLGHUWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDW
WKHHYHQWPD\KDYHEHHQFDXVHGE\WKHLQYHVWLJDWLRQDOSURGXFW"¶
)RU6$(VFDXVDOUHODWLRQVKLSZLOODOVREHDVVHVVHGIRURWKHUPHGLFDWLRQDQGVWXG\
SURFHGXUHV1RWHWKDWIRU6$(VWKDWFRXOGEHDVVRFLDWHGZLWKDQ\VWXG\SURFHGXUHWKHFDXVDO
UHODWLRQVKLSLVLPSOLHGDVµ\HV¶
 &KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH([DFHUEDWLRQV
$OOPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQVPXVWEHFDSWXUHGXVLQJWKH&23'([DFHUEDWLRQ
H&5)0LOG&23'H[DFHUEDWLRQVZLOOEHHYDOXDWHGEDVHGRQV\PSWRPVUHFRUGHGE\WKH
VXEMHFWLQWKHH'LDU\([DFHUEDWLRQVRI&23'LVDUHH[SHFWHGWRRFFXUDVDSURJUHVVLRQRI
GLVHDVHGHVSLWHVWDQGDUGL]HGGUXJWUHDWPHQWRUWUHDWPHQWVZLWKFRPELQDWLRQWKHUDSLHV$VD
UHVXOWWKH6SRQVRUKDVFODVVLILHGD&23'H[DFHUEDWLRQDVDSURWRFROVSHFLILHGH[SHFWHGHYHQW
DQGLWLVQRWWREHUHSRUWHGDVDQDGYHUVHHYHQW$(XQOHVVFRQVLGHUHGDVHULRXV$(6$(
6XEVHTXHQWO\DQ\LQGLYLGXDOFDVHVDIHW\UHSRUWVUHFHLYHGUHODWHGWRH[DFHUEDWLRQRI&23'
ZLOOQRWEHVXEPLWWHGRQDQH[SHGLWHGEDVLVDVD6XVSHFWHG8QH[SHFWHG6HULRXV$GYHUVH
5HDFWLRQ686$5XQOHVVIXUWKHUPHGLFDODVVHVVPHQWE\WKH6SRQVRUUHTXLUHVLW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 $(VRI6SHFLDO,QWHUHVW
&HUWDLQ$(VKDYHEHHQLGHQWLILHGDVDGYHUVHHYHQWVRIVSHFLDOLQWHUHVW$(6,VGXHWRWKH
FODVVRIGUXJVEHLQJVWXGLHG7KHVH$(VZLOOEHFDSWXUHGWKURXJKVSRQWDQHRXVUHSRUWVDQG
WKHUHSRUWLQJRIWKHVH$(6,VZLOOEHGHVFULEHGLQWKH6$36RPHHYHQWVDUHGHVFULEHGEHORZ
EXWWKLVLVQRWDFRPSUHKHQVLYHOLVWRIDOO$(6,V
 /$%$(IIHFWV
.QRZQHIIHFWVRI/$%$VLQFOXGHFDUGLRYDVFXODUWUHPRUJOXFRVHDQGSRWDVVLXPHIIHFWV
 /RFDO6WHURLG(IIHFWV
/RFDOVWHURLGHIIHFWVLQFOXGHRUDOFDQGLGLDVLVKRDUVHQHVVG\VSKRQLDDQGWKURDWLUULWDWLRQ
 3QHXPRQLD
,QRUGHUWRDGHTXDWHO\DVVHVVDQGFKDUDFWHUL]HWKHULVNRISQHXPRQLDLQSDWLHQWVLQDQRQ
ELDVHGPDQQHUWKH&OLQLFDO(QGSRLQW&RPPLWWHHZLOOUHYLHZDOODGYHUVHHYHQWVDQGVHULRXV
DGYHUVHHYHQWVUHSRUWHGDVSQHXPRQLDWRHQVXUHDSSURSULDWHSUHGHILQHGDQGFOLQLFDOO\
FRQVLVWHQWSQHXPRQLDFULWHULDDUHPHW
7KHFULWHULDHVWDEOLVKHGWRVWDQGDUGL]HWKHGLDJQRVLVRISQHXPRQLDDUHDVIROORZV
 &OLQLFDOGLDJQRVLVRISQHXPRQLDE\WKH,QYHVWLJDWRU
 'RFXPHQWDWLRQRIFKHVWLPDJLQJREWDLQHGZLWKLQGD\VRIWKHGLDJQRVLVRISQHXPRQLD
WKDWLVFRPSDWLEOHZLWKWKHGLDJQRVLVRISQHXPRQLD
 7UHDWPHQWZLWKDQWLELRWLFVDQGRULIDSSURSULDWHDQWLYLUDODQGRUDQWLIXQJDODJHQWV
 $WOHDVWRIWKHIROORZLQJFOLQLFDOVLJQVV\PSWRPVRUODERUDWRU\ILQGLQJV
 ,QFUHDVHGFRXJK
 ,QFUHDVHGVSXWXPSXUXOHQFHRUSURGXFWLRQ
 $GYHQWLWLRXVEUHDWKVRXQGVRQDXVFXOWDWLRQ
 '\VSQHDRUWDFK\SQHD
 )HYHU
 (OHYDWHGZKLWHEORRGFHOOFRXQWV
 +\SR[HPLD
7KH&OLQLFDO(QGSRLQW&RPPLWWHHZLOOEHHPSRZHUHGWRUHTXHVWDQ\DGGLWLRQDOLQIRUPDWLRQ
LQFOXGLQJFRSLHVRIFKHVW;UD\VRU&7VFDQVLIQHHGHGWRFRQILUPWKHSQHXPRQLDGLDJQRVLV
5DGLRJUDSKVZLOOEHHYDOXDWHGORFDOO\DQGWKHUHVXOWVLQILOWUDWHFRPSDWLEOHZLWKSQHXPRQLD
ZLOOEHGRFXPHQWHGZLWKLQWKHH&5)DWWKHVLWHV,IWKHLQYHVWLJDWRUEHFRPHVDZDUHWKDWD
GLDJQRVLVRISQHXPRQLDZDVPDGHZLWKRXWDFKHVWLPDJHKDYLQJEHHQSHUIRUPHGKHRUVKH
VKRXOGREWDLQDFKHVW[UD\IURQWDODQGODWHUDOZLWKLQGD\VRIWKHGDWHRISQHXPRQLD
GLDJQRVLV
 3DUDGR[LFDO%URQFKRVSDVP
0RQLWRULQJIRUSDUDGR[LFDOEURQFKRVSDVPZLOORFFXUWKURXJKVSRQWDQHRXVUHSRUWLQJ
 0DMRU$GYHUVH&DUGLRYDVFXODU(YHQWV0$&(
'XHWRWKHSUHYDOHQFHRIFDUGLRYDVFXODUGLVHDVHVLQSDWLHQWVZLWK&23'0$&(ZLOOEH
HYDOXDWHGDFFRUGLQJWRSUHGHILQHGFULWHULDDVGHVFULEHGLQWKH&KDUWHUV7KH&OLQLFDO

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
(QGSRLQW&RPPLWWHHZLOOUHYLHZDQGDGMXGLFDWHVHULRXV&&9HYHQWVDV0$&(XVLQJWKH
IROORZLQJGHILQLWLRQ
x &DUGLRYDVFXODUGHDWK
x 1RQIDWDO0\RFDUGLDO,QIDUFWLRQ0,
x 1RQIDWDOVWURNH
 &OLQLFDO/DERUDWRU\$GYHUVH(YHQWV
0DQ\ODERUDWRU\DEQRUPDOLWLHVREVHUYHGGXULQJWKHFRXUVHRIDVWXG\ZLOOEHLQFOXGHGXQGHU
DUHSRUWHG$(GHVFULELQJDFOLQLFDOV\QGURPHHJHOHYDWHGEORRGXUHDQLWURJHQDQG
FUHDWLQLQHLQWKHVHWWLQJRIDQ$(RIUHQDOIDLOXUHRUGHFUHDVHGKHPRJORELQLQDFDVHRI
EOHHGLQJHVRSKDJHDOYDULFHV,VRODWHGODERUDWRU\DEQRUPDOLWLHVVKRXOGEHUHSRUWHGDV$(VLI
WKH\DUHFRQVLGHUHGWREHFOLQLFDOO\VLJQLILFDQWE\WKH,QYHVWLJDWRU
&ULWHULDIRUDµFOLQLFDOO\VLJQLILFDQW¶ODERUDWRU\DEQRUPDOLW\DUH
 $ODERUDWRU\DEQRUPDOLW\WKDWOHDGVWRDGRVHOLPLWLQJWR[LFLW\HJDQDEQRUPDOLW\WKDW
UHVXOWVLQVWXG\GUXJGRVHUHGXFWLRQVXVSHQVLRQRUWUHDWPHQWGLVFRQWLQXDWLRQ
 $ODERUDWRU\DEQRUPDOLW\WKDWUHVXOWVLQDQ\WKHUDSHXWLFLQWHUYHQWLRQLHFRQFRPLWDQW
PHGLFDWLRQRUWKHUDS\
 2WKHUODERUDWRU\DEQRUPDOLW\MXGJHGE\WKH,QYHVWLJDWRUWREHRIDQ\SDUWLFXODUFOLQLFDO
FRQFHUQHJVLJQLILFDQWIDOOLQKHPRJORELQQRWUHTXLULQJWUDQVIXVLRQ
 )RUODERUDWRU\DEQRUPDOLWLHVWKDWGRQRWPHHWWKHDERYHFULWHULDEXWDUHRXWVLGHRIQRUPDO
UDQJHHJRU!QRUPDOUHIHUHQFHUDQJHWKH,QYHVWLJDWRUVKRXOGLQGLFDWHZKHWKHUWKH
YDOXHLVFOLQLFDOO\VLJQLILFDQWRUQRWFOLQLFDOO\VLJQLILFDQWIRUWKHVXEMHFW
 6HULRXV$GYHUVH(YHQWV6$(V
$Q$(LVFRQVLGHUHGµVHULRXV¶LILQWKHYLHZRIWKH,QYHVWLJDWRURU6SRQVRULWUHVXOWVLQDQ\
RIWKHIROORZLQJRXWFRPHV
 'HDWK
 $OLIHWKUHDWHQLQJ$(
 ,QSDWLHQWKRVSLWDOL]DWLRQRUSURORQJDWLRQRIH[LVWLQJKRVSLWDOL]DWLRQ
 $SHUVLVWHQWRUVLJQLILFDQWLQFDSDFLW\RUVXEVWDQWLDOGLVUXSWLRQRIWKHDELOLW\WRFRQGXFW
QRUPDOOLIHIXQFWLRQV
 $FRQJHQLWDODQRPDO\ELUWKGHIHFW
,PSRUWDQWPHGLFDOHYHQWVWKDWPD\QRWUHVXOWLQGHDWKEHOLIHWKUHDWHQLQJRUUHTXLUH
KRVSLWDOL]DWLRQPD\EHFRQVLGHUHGVHULRXVZKHQEDVHGXSRQDSSURSULDWHMXGJPHQWWKH\
MHRSDUGL]HWKHVXEMHFWRUUHTXLUHPHGLFDORUVXUJLFDOLQWHUYHQWLRQWRSUHYHQWRQHRIWKH
RXWFRPHVOLVWHGLQWKHGHILQLWLRQ([DPSOHVRIVXFKPHGLFDOHYHQWVLQFOXGHDOOHUJLF
EURQFKRVSDVPUHTXLULQJLQWHQVLYHWUHDWPHQWLQDQHPHUJHQF\URRPRUDWKRPHEORRG
G\VFUDVLDVRUFRQYXOVLRQVWKDWGRQRWUHVXOWLQVXEMHFWKRVSLWDOL]DWLRQRUWKHGHYHORSPHQWRI
GUXJGHSHQGHQF\RUGUXJDEXVH
+RVSLWDOL]DWLRQIRUDSUHH[LVWLQJFRQGLWLRQLQFOXGLQJHOHFWLYHSURFHGXUHVZKLFKKDVQRW
ZRUVHQHGGRHVQRWFRQVWLWXWHDQ6$(
$Q$(RUVXVSHFWHGDGYHUVHUHDFWLRQLVFRQVLGHUHG³OLIHWKUHDWHQLQJ¶LILQWKHYLHZRIWKH
,QYHVWLJDWRURU6SRQVRULWVRFFXUUHQFHSODFHVWKHVXEMHFWDWLPPHGLDWHULVNRIGHDWK,WGRHV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
QRWLQFOXGHDQDGYHUVHUHDFWLRQRUVXVSHFWHGDGYHUVHUHDFWLRQWKDWKDGLWRFFXUUHGLQDPRUH
VHYHUHIRUPPLJKWKDYHFDXVHGGHDWK
$Q$(RUVXVSHFWHGDGYHUVHUHDFWLRQLVFRQVLGHUHGXQH[SHFWHGLILWLVQRWOLVWHGLQWKHFXUUHQW
,QYHVWLJDWRU%URFKXUH,%RULVQRWOLVWHGDWWKHVSHFLILFLW\RUVHYHULW\WKDWKDVEHHQ
REVHUYHG
 5HSRUWLQJRI6HULRXV$GYHUVH(YHQWV
,QDJUHHLQJWRWKHSURYLVLRQVRIWKLVSURWRFROWKH,QYHVWLJDWRUDFFHSWVDOOOHJDOUHVSRQVLELOLWLHV
IRU$(LGHQWLILFDWLRQGRFXPHQWDWLRQJUDGLQJDVVLJQPHQWRIFDXVDOLW\DQGSURPSWQRWLILFDWLRQ
RI6$(VWR3HDUO3KDUPDFRYLJLODQFHRUGHVLJQHH$OO6$(VPXVWEHUHSRUWHGWR3HDUO
3KDUPDFRYLJLODQFHRUGHVLJQHHQRODWHUWKDQKRXUVDIWHUWKH,QYHVWLJDWRU
UHFRJQL]HVFODVVLILHVWKHHYHQWDVDQ6$($OO6$(VVKRXOGEHGRFXPHQWHGDQGUHSRUWHG
XVLQJWKHH&5)$WDPLQLPXPDGHVFULSWLRQRIWKHHYHQWDQGWKH,QYHVWLJDWRU¶VMXGJPHQWRI
FDXVDOLW\PXVWEHSURYLGHGDWWKHWLPHRIWKHLQLWLDOUHSRUWXVLQJWKHDSSURSULDWHIRUPHJ
6$(5HSRUW)RUP$IWHUWKHLQLWLDOUHSRUWDVQHFHVVDU\WKH,QYHVWLJDWRUPXVWSURYLGHDQ\
DGGLWLRQDOLQIRUPDWLRQRQDQ6$(WR3HDUO3KDUPDFRYLJLODQFHRUGHVLJQHHZLWKLQWZR
ZRUNLQJGD\VDIWHUUHFHLYLQJWKHLQIRUPDWLRQ)ROORZXSLQIRUPDWLRQZLOOEHDGHWDLOHG
ZULWWHQUHSRUWWKDWPD\LQFOXGHFRSLHVRIKRVSLWDOUHFRUGVFDVHUHSRUWVDXWRSV\UHSRUWVDQG
RWKHUSHUWLQHQWGRFXPHQWV
)RUVXEMHFWVGLVFRQWLQXLQJVWXG\WUHDWPHQWLH7UHDWPHQW'LVFRQWLQXDWLRQEXWSODQQLQJWR
FRQWLQXHVWXG\SDUWLFLSDWLRQLHSODQQLQJWRFRPSOHWHDOOUHPDLQLQJVWXG\YLVLWVDOO
$(V6$(VZLOOEHFROOHFWHGWKURXJKWKHGD\IROORZXSWHOHSKRQHFDOO
3RVWVWXG\6$(VIROORZLQJWKHODVWGRVHRIVWXG\GUXJPXVWEHUHSRUWHGWR3HDUO
3KDUPDFRYLJLODQFHDVGHVFULEHGLQ6HFWLRQ
7KH,QYHVWLJDWRULVUHVSRQVLEOHIRUFRQWLQXLQJWRUHSRUWDQ\QHZRUUHOHYDQWIROORZXS
LQIRUPDWLRQWKDWVKHOHDUQVDERXWWKH6$(
 6XSSOHPHQWDO,QYHVWLJDWLRQVRI6$(V
7KH,QYHVWLJDWRUDQGVXSSRUWLQJSHUVRQQHOUHVSRQVLEOHIRUVXEMHFWFDUHVKRXOGGLVFXVVZLWK
WKH6SRQVRU0HGLFDO0RQLWRURUGHVLJQHHDQ\QHHGIRUVXSSOHPHQWDOLQYHVWLJDWLRQVRI6$(V
,IDGGLWLRQDODVVHVVPHQWVDUHFRQGXFWHGUHVXOWVPXVWEHUHSRUWHGWRWKH6SRQVRU,IDVXEMHFW
GLHVGXULQJVWXG\SDUWLFLSDWLRQDQGLIDSRVWPRUWHPH[DPLQDWLRQLVSHUIRUPHGDFRS\RIWKH
DXWRSV\UHSRUWVKRXOGEHVXEPLWWHGWRWKH6SRQVRU
 3RVW6WXG\)ROORZ8SRI$GYHUVH(YHQWV
$Q\$(VWKDWDUHXQUHVROYHGDWWKHVXEMHFW¶VODVW$(DVVHVVPHQWLQWKHVWXG\DUHWREH
IROORZHGXSE\WKH,QYHVWLJDWRUIRUDVORQJDVPHGLFDOO\LQGLFDWHGEXWZLWKRXWIXUWKHU
UHFRUGLQJLQWKHH&5)7KH6SRQVRUUHWDLQVWKHULJKWWRUHTXHVWDGGLWLRQDOLQIRUPDWLRQIRU
DQ\VXEMHFWZLWKRQJRLQJ$(V6$(VDWWKHHQGRIWKHVWXG\LIMXGJHGQHFHVVDU\
 1RWLILFDWLRQRI3RVW6WXG\6HULRXV$GYHUVH(YHQWV
,QYHVWLJDWRUVDUHQRWREOLJDWHGWRDFWLYHO\IROORZVXEMHFWVDIWHUFRPSOHWLRQRIWKHVWXG\
+RZHYHULIWKH,QYHVWLJDWRUEHFRPHVDZDUHRIDSRVWVWXG\6$(RFFXUULQJZLWKLQWKH
GD\VIROORZLQJWKHODVWGRVHRIVWXG\GUXJWKH6$(PXVWEHUHSRUWHGWRWKH6SRQVRU
ZKHWKHURUQRWWKHHYHQWLVDWWULEXWDEOHWRVWXG\GUXJ$OO6$(VPXVWEHUHSRUWHGWRWKH
6SRQVRUQRODWHUWKDQKRXUVDIWHUWKH,QYHVWLJDWRUUHFRJQL]HVFODVVLILHVWKHHYHQWDVDQ
6$(

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 ,QVWLWXWLRQDO5HVHDUFK%RDUG,QGHSHQGHQW(WKLFV&RPPLWWHH1RWLILFDWLRQRI6HULRXV
$GYHUVH(YHQWV
7KH,QYHVWLJDWRULVUHVSRQVLEOHIRUSURPSWO\QRWLI\LQJKHUKLV,QVWLWXWLRQDO5HYLHZ
%RDUG,QGHSHQGHQW(WKLFV&RPPLWWHH,5%,(&RIDOO6$(VLQFOXGLQJDQ\IROORZXS
LQIRUPDWLRQRFFXUULQJDWWKHLUVLWHDQGDQ\6$(UHJXODWRU\UHSRUWLQFOXGLQJDQ\IROORZXS
UHSRUWVUHFHLYHGIURPWKH6SRQVRU'RFXPHQWDWLRQRI,5%,(&VXEPLVVLRQPXVWEHUHWDLQHG
IRUHDFKVDIHW\UHSRUW7KH,QYHVWLJDWRULVDOVRUHVSRQVLEOHIRUQRWLI\LQJWKH6SRQVRULIWKHLU
,5%,(&UHTXLUHVUHYLVLRQVWRWKH,&)RURWKHUPHDVXUHVEDVHGRQLWVUHYLHZRIDQ6$(
5HSRUW
 +HDOWK$XWKRULW\6DIHW\5HSRUWV
7KH6SRQVRURULWVUHSUHVHQWDWLYHVZLOOVXEPLWDVDIHW\UHSRUWWRWKHDSSURSULDWHUHJXODWRU\
DJHQFLHVIRUDQ\VXVSHFWHGDGYHUVHUHDFWLRQWKDWLVERWKVHULRXVDQGXQH[SHFWHGZLWKLQWKH
WLPHIUDPHVSHFLILHGE\HDFKUHJXODWRU\DJHQF\
7KH6SRQVRURULWVUHSUHVHQWDWLYHVZLOOVHQGFRSLHVRIHDFKVXEPLWWHGVDIHW\UHSRUWWR
,QYHVWLJDWRUVDFWLYHO\SDUWLFLSDWLQJLQ3HDUOVSRQVRUHGFOLQLFDOVWXGLHV6DIHW\UHSRUWVPXVW
DOVREHVXEPLWWHGWRWKHDSSURSULDWH,5%V,(&VDVVRRQDVSRVVLEOH'RFXPHQWDWLRQRI
VXEPLVVLRQWRWKH,5%,(&PXVWEHUHWDLQHGIRUHDFKVDIHW\UHSRUW
 2YHUGRVH
$QRYHUGRVHLVGHILQHGDVDQ\GRVHJUHDWHUWKDQWKHKLJKHVWGRVHLQYHVWLJDWHGLQWKLVVWXG\
WKDWUHVXOWVLQFOLQLFDOVLJQVDQGV\PSWRPV,QWKHHYHQWRIDVWXG\GUXJRYHUGRVHWKH
,QYHVWLJDWRUVKRXOGXVHWKHLUEHVWFOLQLFDOMXGJPHQWLQWUHDWLQJWKHRYHUGRVHDQGWKH6SRQVRU
0HGLFDO0RQLWRUVKRXOGEHFRQWDFWHG,QYHVWLJDWRUVVKRXOGUHIHUWRWKHUHOHYDQWGRFXPHQWV
IRUGHWDLOHGLQIRUPDWLRQUHJDUGLQJZDUQLQJVSUHFDXWLRQVFRQWUDLQGLFDWLRQV$(VDQGRWKHU
VLJQLILFDQWGDWDSHUWDLQLQJWRWKHVWXG\GUXJVEHLQJDGPLQLVWHUHG6XFKGRFXPHQWVPD\
LQFOXGHEXWDUHQRWOLPLWHGWRWKH,QYHVWLJDWRU¶V%URFKXUHIRU%))0',DQG))0',DQG
DSSURYHGSURGXFWODEHOLQJIRURSHQODEHOSURGXFWV

3UHJQDQF\
7RHQVXUHVXEMHFWVDIHW\HDFKSUHJQDQF\IURP9LVLWXQWLOVWXG\FRPSOHWLRQPXVWEH
UHSRUWHGWRWKH6SRQVRUZLWKLQKRXUVRIOHDUQLQJRILWVRFFXUUHQFH7KHSUHJQDQF\VKRXOG
EHIROORZHGLQLWVHQWLUHW\WRDVFHUWDLQRXWFRPHLQFOXGLQJVSRQWDQHRXVRUYROXQWDU\
WHUPLQDWLRQGHWDLOVRIWKHELUWKDQGWKHSUHVHQFHRUDEVHQFHRIDQ\ELUWKGHIHFWVFRQJHQLWDO
DEQRUPDOLWLHVRUPDWHUQDODQGRUQHZERUQFRPSOLFDWLRQV3UHJQDQF\VKRXOGEHUHFRUGHGRQ
D3DSHU3UHJQDQF\5HSRUW)RUPDQGUHSRUWHGE\WKH,QYHVWLJDWRUWR3HDUO3KDUPDFRYLJLODQFH
RUGHVLJQHH3UHJQDQF\IROORZXSVKRXOGEHUHFRUGHGRQWKHVDPHSUHJQDQF\SDSHUIRUPDQG
VKRXOGLQFOXGHSRVVLEOHUHODWLRQVKLSWRWKHVWXG\GUXJLQUHVSRQVHWRWKHSUHJQDQF\RXWFRPH
$Q\6$(H[SHULHQFHGGXULQJSUHJQDQF\PXVWEHUHSRUWHGRQWKH6$(5HSRUW)RUP

3DWHUQDO([SRVXUH
0DOHVXEMHFWVZKRDUHVH[XDOO\DFWLYHPXVWDJUHHWRXVHDGRXEOHEDUULHUPHWKRGRI
FRQWUDFHSWLRQFRQGRPZLWKVSHUPLFLGHIURPWKHILUVWGRVHRIUDQGRPL]HGWUHDWPHQWXQWLO
ZHHNVDIWHUWKHLUODVWGRVHDQGPXVWQRWGRQDWHVSHUPGXULQJWKHLUVWXG\SDUWLFLSDWLRQSHULRG
,IDPDOHVXEMHFW
VSDUWQHUEHFRPHVSUHJQDQWGXULQJWKHFRXUVHRIWKHVWXG\LWPXVWEH
UHSRUWHGWRWKH6SRQVRUZLWKLQKRXUVRIWKHLQYHVWLJDWRUOHDUQLQJRILWVRFFXUUHQFH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

+\¶V/DZ
&DVHVZKHUHDVXEMHFWVKRZVDQ$67RU$/7[8SSHU/LPLWRI1RUPDO8/1ZLWK7RWDO
%LOLUXELQ7%/[8/1PD\QHHGWREHUHSRUWHGDV6$(V3OHDVHUHIHUWR$SSHQGL[
IRUIXUWKHULQVWUXFWLRQVLQFDVHVRIFRPELQHGLQFUHDVHRIDPLQRWUDQVIHUDVHDQG7%/

8VHRI6WHURLGVGXULQJWKH6WXG\
$WHDFKYLVLWVXEMHFWVZLOOEHDVNHGZKHWKHUWKH\KDYHEHHQDGPLQLVWHUHGRUDOLQWUDPXVFXODU
RULQWUDYHQRXVFRUWLFRVWHURLGVVLQFHWKHLUODVWYLVLW8VHRIRUDO,0RU,9FRUWLFRVWHURLGVIRU
WKHPDQDJHPHQWRI&23'H[DFHUEDWLRQVRURWKHUFRQGLWLRQVLVQRWDUHDVRQIRU7UHDWPHQW
'LVFRQWLQXDWLRQRU6WXG\:LWKGUDZDO8VHRIFRUWLFRVWHURLGVKRZHYHUVKRXOGEH
GRFXPHQWHGLQWKH&RQFRPLWDQW0HGLFDWLRQVH&5)6XEMHFWVZKRDUHEHLQJWUHDWHGIRUD
&23'H[DFHUEDWLRQZLWK2&6RUKDYHEHHQWUHDWHGIRUD&23'H[DFHUEDWLRQZLWK2&6
ZLWKLQGD\VRIDVFKHGXOHGYLVLWZLOOEHDOORZHGWRSHUIRUP3)7VXQGHUFORVHPHGLFDO
VXSHUYLVLRQ7KH,QYHVWLJDWRUFDQGHFLGHWRVWRS3)7VLIVXEMHFWVDIHW\LVDWULVNRUV\PSWRPV
PDNHLWGLIILFXOWIRUWKHVXEMHFWWRFRQWLQXH
6XEMHFWVWUHDWHGZLWKRUDO,0RU,9FRUWLFRVWHURLGVIRULQGLFDWLRQVRWKHUWKDQ&23'VKRXOG
VWLOOIROORZWKHLUUHJXODUYLVLWVFKHGXOH,IDVXEMHFWUHTXLUHVLQWUDRFXODUFRUWLFRVWHURLGVWKH
,QYHVWLJDWRUVKRXOGPDNHDGHWHUPLQDWLRQDVWRWKHVXLWDELOLW\RIWKHVXEMHFWFRQWLQXLQJLQWKH
VWXG\

&OLQLFDO(QGSRLQW&RPPLWWHH
$QH[WHUQDO&OLQLFDO(QGSRLQWFRPPLWWHHZLOOEHLPSOHPHQWHGIRUWKLVVWXG\7KHFRPPLWWHH
ZLOOFRQVLVWRILQGHSHQGHQWH[SHUWVRXWVLGHRIWKH6SRQVRUZKRDUHQRWLQYROYHGLQWKHVWXG\
FRQGXFW&RPPLWWHHPHPEHUVZLOOEHEOLQGHGZLWKUHVSHFWWRWKHVXEMHFW¶VVWXG\PHGLFDWLRQ
$WUHJXODULQWHUYDOVWKH&RPPLWWHHZLOOUHYLHZQDUUDWLYHVGLVFKDUJHVXPPDULHVDQGPHGLFDO
UHFRUGVDVDYDLODEOH7KHFRPPLWWHHZLOOUHYLHZDSSURYHDQGRSHUDWHDFFRUGLQJWRWKUHH
&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHUVWKDWZLOOEHHVWDEOLVKHGIRUWKLVVWXG\
&DUGLRYDVFXODUDQG&HUHEURYDVFXODU&&9&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU
&DUGLRYDVFXODUDQG&HUHEURYDVFXODU&&9&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHUZLOOEH
UHIHUHQFHGIRUWKHUHYLHZDQGDVVHVVPHQWRIQRQIDWDOVHULRXV&&9HYHQWVDVPDMRUDGYHUVH
FDUGLRYDVFXODUHYHQWV0$&(7KH&RPPLWWHHZLOOUHYLHZWKHSURJUDPZLGHVHOHFWHG
0$&(HYHQWVWRHQVXUHWKDWWKH\DUHFRUUHFWO\FODVVLILHG$WUHJXODULQWHUYDOVWKH
&RPPLWWHHZLOOUHYLHZQDUUDWLYHVGLVFKDUJHVXPPDULHVDQGPHGLFDOUHFRUGVDVDYDLODEOHWR
GHWHUPLQHZKHWKHUWKHHYHQWVSUHVHQWHGPHHWWKH0$&(FULWHULD
&DXVH6SHFLILF0RUWDOLW\&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU
&DXVH6SHFLILF0RUWDOLW\&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHUZLOOEHUHIHUHQFHGIRUWKH
UHYLHZDQGDVVHVVPHQWRIWKHFDXVHRIGHDWKVIRUFDUGLRYDVFXODUDQGUHVSLUDWRU\UHODWHG
HYHQWV$WUHJXODULQWHUYDOVWKH&RPPLWWHHZLOOUHYLHZQDUUDWLYHVGLVFKDUJHVXPPDULHVDQG
PHGLFDOUHFRUGVDVDYDLODEOHWRGHWHUPLQHWKHPRVWOLNHO\FDXVHRIGHDWKLQSDUWLFXODUIRU
FDUGLRYDVFXODUDQGUHVSLUDWRU\UHODWHGGHDWKV
3QHXPRQLD&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHU
3QHXPRQLD&OLQLFDO(QGSRLQW$GMXGLFDWLRQ&KDUWHUZLOOEHUHIHUHQFHGIRUWKHUHYLHZDQG
DVVHVVPHQWRIDOOUHSRUWHGSQHXPRQLDDGYHUVHHYHQWVDQGVHULRXVDGYHUVHHYHQWVWRHQVXUH
DSSURSULDWHSUHGHILQHGDQGFOLQLFDOO\FRQVLVWHQWSQHXPRQLDFULWHULDDUHPHW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

'DWD0RQLWRULQJ&RPPLWWHH
$QLQGHSHQGHQWH[WHUQDO'DWD0RQLWRULQJ&RPPLWWHH'0&ZLOOEHVHWXSWRUHYLHZDOO
6$(VLQFOXGLQJGHDWKVDQGDOOKRVSLWDOL]DWLRQVDQGFDUGLRYDVFXODUHYHQWV0HPEHUVRIWKH
'0&ZLOOUHYLHZVXPPDULHVRIWKHVHVDIHW\GDWDJHQHUDWHGH[WHUQDOO\DQGLQGHSHQGHQWO\RI
WKH6SRQVRULQDVHPLEOLQGHGRUXQEOLQGHGPDQQHUDWSUHGHWHUPLQHGLQWHUYDOV,IVLJQLILFDQW
VDIHW\LVVXHVDULVHLQEHWZHHQVFKHGXOHGPHHWLQJVDGKRFPHHWLQJVZLOOEHDGGHGWRUHYLHZ
GDWD%DVHGRQWKHVDIHW\LPSOLFDWLRQVRIWKHGDWDWKH'0&PD\UHFRPPHQGVWXG\
PRGLILFDWLRQVRUWHUPLQDWLRQ

+HDOWKFDUH5HVRXUFH8WLOL]DWLRQ
+HDOWKFDUHUHVRXUFHXWLOL]DWLRQZLOOEHFDSWXUHGDW9LVLWVWKURXJK:HHNRU)LQDO
6WXG\9LVLWDQGZKHQHYHUWUHDWPHQWLVGLVFRQWLQXHGFRQVHQWZLWKGUDZQ'DWDFROOHFWHGZLOO
LQFOXGHQXPEHURIPLVVHGZRUNGD\VGD\VSULPDU\FDUHJLYHUPLVVHGZRUNDVDUHVXOWRIWKH
VXEMHFWV&23'QXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKWHOHSKRQHFDOOVWRKHDOWKFDUH
SURYLGHUVQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKYLVLWVWRKHDOWKFDUHSURYLGHUVQXPEHU
DQGSHUFHQWDJHRIVXEMHFWVZLWK(PHUJHQF\5RRP(5YLVLWVQXPEHUDQGSHUFHQWDJHRI
VXEMHFWVKRVSLWDOL]HGDORQJZLWKWKHFRUUHVSRQGLQJQXPEHURIGD\VDQGSHUFHQWDJHRI
VXEMHFWVLQWKHKRVSLWDO,QWHQVLYH&DUH8QLW,&8RU&ULWLFDO&DUH8QLW&&8DQGQXPEHU
DQGSHUFHQWDJHRIVXEMHFWVUHTXLULQJDPEXODQFHWUDQVSRUW

7HUPLQDWLRQRIWKH6WXG\
$Q,QYHVWLJDWRUPD\FKRRVHWRGLVFRQWLQXHVWXG\SDUWLFLSDWLRQDWDQ\WLPHIRUDQ\UHDVRQDQG
VKRXOGSURYLGHVXIILFLHQWQRWLFHSHUWKHWHUPVRIWKHFRQWUDFWZLWKWKH6SRQVRU
7KH6SRQVRUUHVHUYHVWKHULJKWWRGLVFRQWLQXHWKHVWXG\DWDQ\WLPHIRUFOLQLFDORU
DGPLQLVWUDWLYHUHDVRQV6XFKDWHUPLQDWLRQPXVWEHLPSOHPHQWHGE\WKH,QYHVWLJDWRULI
LQVWUXFWHGWRGRVRE\WKH6SRQVRULQDWLPHIUDPHWKDWLVFRPSDWLEOHZLWKWKHVXEMHFWV¶
ZHOOEHLQJ


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<$&7,9,7,(6
3OHDVHUHIHUWR6HFWLRQIRUDFRPSOHWHDQGGHWDLOHGGHVFULSWLRQRIDOOVWXG\SURFHGXUHV
$WLPHDQGHYHQWVVFKHGXOHLVSURYLGHGLQ7DEOH2WKHUGHWDLOHGVFKHGXOHVDUHSURYLGHG
IRUWLPHGDVVHVVPHQWVIRUDOOSRVWUDQGRPL]DWLRQLQFOLQLFYLVLWV
*HQHUDO&RQVLGHUDWLRQV
6XEMHFWVZKRLQDGYHUWHQWO\WRRN&23'PHGLFDWLRQVZLWKLQKRXUVRIWKHVWDUWRIVWXG\
SURFHGXUHVPXVWEHGHOD\HGEXWQRWWRH[FHHGGRVLQJE\DPRUUHVFKHGXOHGZLWKLQWKH
VSHFLILHGYLVLWZLQGRZ
6XEMHFWVPXVWQRWLQJHVW[DQWKLQHDQGRU[DQWKLQHDQDORJXHFDIIHLQHFRQWDLQLQJIRRGVDQG
EHYHUDJHVIRUDWOHDVWKRXUVSULRUWRHDFKVWXG\YLVLWDQGIRUWKHGXUDWLRQRIHDFKVWXG\
YLVLW([DPSOHVRIVXFKSURGXFWVLQFOXGHFRIIHHWHDFKRFRODWHDQGFROD'HFDIIHLQDWHG
EHYHUDJHVDUHDFFHSWDEOH
6XEMHFWVZLOOEHUHTXLUHGWRUHIUDLQIURPVPRNLQJQLFRWLQHJXPVRUSDWFKHVDUHDOORZHG
IRUDWOHDVWKRXUVSULRUWRHDFKVWXG\YLVLWDQGWKURXJKRXWWKHGXUDWLRQRIHDFKVWXG\YLVLW
,QRUGHUWRPLQLPL]HGLXUQDOYDULDQFHVLWHVVKRXOGPDNHHYHU\HIIRUWWRDVVHVVVXEMHFWVDW
WKHVDPHWLPHWKURXJKRXWWKHVWXG\6LWHVVKRXOGGLVFXVVWKHLPSRUWDQFHRIGRVLQJDWD
FRQVLVWHQWWLPHOLQNHGWRWKHWLPHRIGRVLQJDWUDQGRPL]DWLRQHJLIWKHLQLWLDOGRVHDW
UDQGRPL]DWLRQLVDGPLQLVWHUHGDWDPDOOVXEVHTXHQWGRVHVVKRXOGEHDGPLQLVWHUHGDWDP
DQGSP,QWKLVFDVHDOOVXEVHTXHQWYLVLWVVKRXOGEHVFKHGXOHGWRVXSSRUWLQFOLQLFGRVLQJ
DVFORVHWRDP>WKHWLPLQJRIWKHLQLWLDOGRVHDWUDQGRPL]DWLRQ@DVSRVVLEOH
6XEMHFWVZLOOEHUHTXLUHGWRUHWXUQWRWKHFOLQLFDSSUR[LPDWHO\WKHVDPHWLPHDV9LVLWIRU
DOOWUHDWPHQWYLVLWVKRXUV$OOLQFOLQLFGRVLQJPXVWRFFXUSULRUWR$0WLPLQJRI
YLVLWVPXVWEHSODQQHGDFFRUGLQJO\7KHVXEMHFWVZLOOEHUHTXLUHGWRUHPDLQDWWKHFOLQLF
XQWLOFRPSOHWLRQRIDOOSURWRFROGHILQHGDVVHVVPHQWV
7RHQVXUHVWDQGDUGL]DWLRQRIGRVLQJWLPHVLWLVUHFRPPHQGHGWKDWVLWHVHQFRXUDJHVXEMHFWV
WRPDLQWDLQDGRVLQJVFKHGXOHFRQVLVWHQWZLWKWKHLULQFOLQLFGRVLQJWLPHDQGWKDWVLWHVFDOO
WKHVXEMHFWRQWKHGD\EHIRUHDVFKHGXOHGYLVLWWRUHPLQGWKHVXEMHFWRIWKHIROORZLQJ
o7RWDNHWKHLUODVWGRVHWKHHYHQLQJEHIRUHWKHVFKHGXOHGYLVLW
o7REULQJWKHLUVWXG\PHGLFDWLRQVDQGH'LDU\ZLWKWKHPWRWKHFOLQLF
o7RZLWKKROGDOOLQKDOHGPHGLFDWLRQVRUDODQGLQWUDQDVDODQGDQ\RUDOPHGLFDWLRQVIRUDW
OHDVWKRXUVSULRUWR3)7V
o6LWHSHUVRQQHOZLOOLQVWUXFWVXEMHFWVQRWWRWDNHDQ\&23'PHGLFDWLRQVZLWKRXWVLWH
SHUVRQQHOSHUPLVVLRQGXULQJDYLVLWXQWLODOOVWXG\SURFHGXUHVKDYHEHHQFRPSOHWHGDQG
WKHVXEMHFWLVGLVFKDUJHG6LWHSHUVRQQHOVKRXOGWDNHHYHU\SUHFDXWLRQWRSUHYHQWVXEMHFW
XVHRI&23'PHGLFDWLRQVGXULQJWKHWHVWGD\6LWHSHUVRQQHOPD\UHTXHVWWKHVXEMHFWWR
VXUUHQGHUDOO&23'PHGLFDWLRQVSULRUWRWKHVWDUWRIWKHYLVLWEHIRUHSHUIRUPLQJDQ\VWXG\
SURFHGXUHVDQGUHWXUQWKH&23'PHGLFDWLRQVWRWKHVXEMHFWDWWKHHQGRIWKHYLVLWZKHQ
DOOVWXG\SURFHGXUHVDUHFRPSOHWHG6XEMHFWVZLOOEHDVNHGWRDEVWDLQZKHUHYHUSRVVLEOH
IURPXVLQJUHVFXH9HQWROLQ+)$GXULQJVWXG\YLVLWV,IDVXEMHFWLVH[SHULHQFLQJVHYHUH
V\PSWRPVDQGUHTXLUHV9HQWROLQ+)$IRUUHOLHIRI&23'V\PSWRPVDWDQ\WLPHGXULQJD
WHVWGD\VLWHSHUVRQQHOPXVWQRWHWKHWLPHDQGMXVWLILFDWLRQRIXVHLQWKHVXEMHFW¶VFKDUW
DQGDOOVXEVHTXHQWVSLURPHWU\DVVHVVPHQWVVKRXOGEHVWRSSHG+RZHYHUVDIHW\
DVVHVVPHQWVVKRXOGEHFRQWLQXHGDWWKHGLVFUHWLRQRIWKH,QYHVWLJDWRU
:KHQWKHODVWVXEMHFWLVUDQGRPL]HGDOODFWLYHVXEMHFWVZLOOEHPDQDJHGDVIROORZV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
o6XEMHFWVZKRKDYHQRW\HWFRPSOHWHGZHHNVLQWKHVWXG\ZLOOFRQWLQXHDFWLYH
SDUWLFLSDWLRQXQWLOZHHNVRIWUHDWPHQWKDYHEHHQFRPSOHWHGDWZKLFKWLPHVLWHVZLOO
SHUIRUPDOOUHTXLUHG)LQDO6WXG\9LVLWSURFHGXUHVDVQRWHGLQ7DEOH
o)RUVXEMHFWVZKRKDYHFRPSOHWHGZHHNVRIWUHDWPHQWDQGKDYHDVFKHGXOHGYLVLW
ZLWKLQWRZHHNVDIWHUWKHODVWVXEMHFWLVUDQGRPL]HGWKHLUQH[WVFKHGXOHGYLVLWZLOOEH
WKHLU)LQDO6WXG\9LVLW)LQDO6WXG\9LVLWSURFHGXUHVZLOOEHIROORZHGIRUWKLVYLVLWVHH
7DEOH
o6XEMHFWVZKRKDYHH[FHHGHGZHHNVRIWUHDWPHQWZLOOFRPSOHWHWKH)LQDO6WXG\9LVLW
WRZHHNVDIWHUWKHODVWVXEMHFWLVUDQGRPL]HG
o )RUVXEMHFWVZLWKDVFKHGXOHGYLVLWZLWKLQWRZHHNVDIWHUWKHODVWVXEMHFWLV
UDQGRPL]HGWKHLUVFKHGXOHGYLVLWZLOOEHWKHLU)LQDO6WXG\9LVLW)LQDO6WXG\9LVLW
SURFHGXUHVZLOOEHIROORZHGIRUWKLVYLVLWVHH7DEOH
o7KH6SRQVRUZLOOLQLWLDWHDGPLQLVWUDWLYHFORVXUHDFWLYLWLHVIRUWKHVWXG\RQFHWKHODVW
VXEMHFWKDVEHHQUDQGRPL]HG7KHVWXG\ZLOOHQGZKHQWKHODVWUHPDLQLQJUDQGRPL]HG
VXEMHFWFRPSOHWHVZHHNVRQUDQGRPL]HGWUHDWPHQWRUFRPSOHWHVWKH)LQDO6WXG\9LVLW
SOXVWKHZHHNIROORZXSWHOHSKRQHFDOO

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO

3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\


&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH2YHUDOO6FKHGXOHRI6WXG\(YHQWV

6FUHHQLQJ
7UHDWPHQW3HULRG
)ROORZXS
7&
9LVLW

9LVLW

9LVLW
5
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHNRU
)LQDO
6WXG\9LVLW

'D\VDIWHU
ODVWGRVH
6WXG\'D\D
'D\
WR
'D\
WR
'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

,Q&OLQLF
;
;
;
;

;


;

;

;

7HOHSKRQH&RQWDFW




;

;
;

;

;

;
3URFHGXUHV














,QIRUPHG&RQVHQW
;













(OLJLELOLW\&ULWHULD
;
;
;











9HULI\&RQWLQXHG(OLJLELOLW\

;
;
;
;

;
;
;

5HYHUVLELOLW\7HVWLQJE

;











'HPRJUDSKLFVDQG0HGLFDO6XUJLFDO
+LVWRU\
;













6PRNLQJ6WDWXV
;
;
;
;
;
;
;
;
;
;
;
;
;

&$7F
;













3ULRU&RQFRPLWDQW0HGLFDWLRQVG
;
;
;
;
;
;
;
;
;
;
;
;
;Q
;
6SLURPHWU\
;G
;
;
;

;


;

;

;

3K\VLFDO([DPLQDWLRQH
;










;Q

9LWDO6LJQV
;
;
;
;
;

;
;
;Q

/HDG(&*
;

;
;



;

;Q

3UHJQDQF\7HVWI
;

;

;


;Q

&OLQLFDO/DERUDWRU\7HVWLQJ
;

;
;


;

;Q

&KHVW,PDJHRU05,J
;













$GMXVW&23'0HGLFDWLRQVK
;











;Q

$GYHUVH(YHQWV&23'([DFHUEDWLRQV
;
;
;
;
;
;
;
;
;
;
;
;
;Q
;
,QKDODWLRQ'HYLFHDQG'RVH,QGLFDWRU
7UDLQLQJ
;
;
;











6WXG\'UXJ'LVSHQVLQJ&ROOHFWLRQ
;L
;
;
;
;

;
;

;Q

6WXG\'UXJ$GPLQLVWUDWLRQ


;
;
;

;
;
;

%',7',M


;
;
;

;
;

;Q

6*54M


;
;

;

;
;

;Q

(4'/M


;
;
;


;
;

;Q

+&58



;
;
;
;
;
;
;
;
;
;Q
;

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO

3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\


&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

6FUHHQLQJ
7UHDWPHQW3HULRG
)ROORZXS
7&
9LVLW

9LVLW

9LVLW
5
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHN
9LVLW
:HHNRU
)LQDO
6WXG\9LVLW

'D\VDIWHU
ODVWGRVH
6WXG\'D\D
'D\
WR
'D\
WR
'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

'D\

,Q&OLQLF
;
;
;
;

;


;

;

;

7HOHSKRQH&RQWDFW




;

;
;

;

;

;
3URFHGXUHV














H'LDU\'LVSHQVLQJ&ROOHFWLRQN
;











;Q

H'LDU\7UDLQLQJ5H7UDLQLQJN
;
;












H'LDU\5HYLHZO

;
;
;
;
;
;
;
;
;
;
;
;

9LWDO6WDWXV&KHFNP












;

%',7', %DVHOLQH'\VSQHD,QGH[7UDQVLWLRQ'\VSQHD,QGH[&$7 &23'$VVHVVPHQW7HVWH'LDU\ HOHFWURQLFGLDU\(&* HOHFWURFDUGLRJUDP(4' (XURSHDQ4XDOLW\RI/LIH
'LPHQVLRQV3DWLHQW5HSRUWHG2XWFRPHV+&58 +HDOWKFDUH5HVRXUFH8WLOL]DWLRQ05, 0DJQHWLFUHVRQDQFHLPDJLQJ5 UDQGRPL]DWLRQ6*54 6W*HRUJH5HVSLUDWRU\4XHVWLRQQDLUH
7& 7HOHSKRQHFDOO
D
6FKHGXOLQJ9LVLWV7KHPD[LPXP6FUHHQLQJ3HULRGLVGD\VWKHHDUOLHVWDVXEMHFWFDQEHUDQGRPL]HGIURP9LVLWGDWHLVGD\VGD\VIRU/$%$ZDVKRXWSOXVGD\EHWZHHQ
9LVLWDQG9LVLWRUGD\VLIVXEMHFWLVZDVKLQJRIIRIWLRWURSLXP7KHPLQLPXP6FUHHQLQJ3HULRGEHWZHHQDQGZHHNVLQGXUDWLRQFDQEHH[WHQGHGWRDPD[LPXPRI
ZHHNVLQFDVHRIDQH[DFHUEDWLRQGXULQJWKH6FUHHQLQJ3HULRG6LWHVKRXOGPDNHHYHU\HIIRUWWRPDLQWDLQVXEMHFWVZLWKLQWKHVFKHGXOHGYLVLWZLQGRZ6XEMHFWVZKRIDOORXWVLGHWKH
YLVLWZLQGRZZLOOEHSODFHGLQWKHDSSURSULDWHYLVLWZLQGRZDWWKHQH[WVFKHGXOHGYLVLW
E
6XEMHFWVZLOOEHWHVWHGIRUUHYHUVLELOLW\ZLWKLQPLQXWHVIROORZLQJSXIIVRIDOEXWHURO9HQWROLQ+)$DW9LVLW
F
6XEMHFWVZLOOFRPSOHWHWKH&$7DW9LVLWDQGDVDQHQWU\FULWHULRQ
G
$WDOOYLVLWVEH\RQG9LVLWQRWHWLPHRIODVWGRVHRIVKRUWDFWLQJEURQFKRGLODWRUDQGRWKHU&23'PHGLFDWLRQVLIKRXUVYLVLWVKRXOGEHUHVFKHGXOHG
G
1RWH6XEMHFWVZKRKDYHPHWDOORIWKHLQFOXVLRQFULWHULDEXWKDYHIDLOHGWRPHHWDFFHSWDELOLW\RUUHSHDWDELOLW\FULWHULDDW9LVLWPD\FRQWLQXHWR9LVLW3URYLGHGWKHVHVXEMHFWV
PHHWDOOVSLURPHWU\FULWHULDDW9LVLWLQFOXGLQJDFFHSWDELOLW\DQGUHSHDWDELOLW\WKH\DUHHOLJLEOHWRFRQWLQXHWR9LVLW6XEMHFWVZKRIDLOWRPHHWDFFHSWDELOLW\DQGUHSHDWDELOLW\
FULWHULDDW9LVLWPXVWEHVFUHHQIDLOHG
H
,QFOXGHVHYDOXDWLRQRIZHLJKWDW9LVLWDQG9LVLW:HHNRU)LQDO6WXG\9LVLWRQO\RUWKH'LVFRQWLQXDWLRQ(DUO\7HUPLQDWLRQ9LVLWDQGHYDOXDWLRQRIKHLJKWDW9LVLWRQO\
I
6HUXPSUHJQDQF\WHVWZLOOEHSHUIRUPHGDW9LVLWDQGDW9LVLW:HHNRU)LQDO6WXG\9LVLW$W9LVLWDQG:HHNDXULQHSUHJQDQF\WHVWZLOOEHSHUIRUPHG
J
2EWDLQDQHZFKHVW[UD\IURQWDODQGODWHUDODW9LVLWLIDFKHVW[UD\RU&7SHUIRUPHGZLWKLQWKHPRQWKVSULRUWR9LVLW6FUHHQLQJLVQRWDYDLODEOHH[FHSWLQFRXQWULHVZLWK
UHVWULFWLYHUDGLRORJ\DVVHVVPHQWSUDFWLFHZKHUHRQO\VXEMHFWVZKRKDYHKDGDFKHVW[UD\RU&7VFDQWKRUD[SHUIRUPHGRXWVLGHRIWKHVWXG\LQWKHODVWPRQWKVDUHDOORZHGWREH
HQUROOHG$OWHUQDWLYHO\LQWKHVHFRXQWULHVDQ05,VKRXOGEHXVHGLQVWHDGRID&7VFDQRUFKHVW[UD\DVSHUORFDOSUDFWLFHDVVHVVPHQW
K
$W9LVLWVWRSSURKLELWHG&23'PHGLFDWLRQVDQGFKDQJH&23'PHGLFDWLRQV$WWKHHQGRI9LVLWUHWXUQVXEMHFWWRSUHVWXG\RURWKHUDSSURSULDWHLQKDOHGPDLQWHQDQFH&23'
L
9HQWROLQ+)$LVGLVSHQVHGRQO\DIWHUDVXEMHFWLVGHWHUPLQHGHOLJLEOHWRSURFHHGWR9LVLWLHRQO\LIVXEMHFWPHHWV&23'GHILQLWLRQIROORZLQJVSLURPHWU\DVVHVVPHQWVDW9LVLW
M
:KHQ%',7',DQG6*54DUHREWDLQHGDWWKHVDPHYLVLWLWLVUHFRPPHQGHGWKDWWKH%',7',VKRXOGEHFROOHFWHGILUVWIROORZHGLPPHGLDWHO\E\WKH6*54DQGWKHQWKH(4'

7KH%',7',6*54DQG(4'VKRXOGEHFRPSOHWHGE\WKHVXEMHFWSULRUWRDQ\RWKHUYLVLWSURFHGXUHV
N
,VVXHDQGWUDLQVXEMHFWVRQH'LDU\XVHRQO\DIWHUDVXEMHFWLVGHWHUPLQHGWRTXDOLI\WRSURFHHGWR9LVLW5HWUDLQLQJZLOOEHGRQHLIQHFHVVDU\DW9LVLW
O
6XEMHFWVZLOOEHDVNHGWRPDLQWDLQDGDLO\UHFRUGRIWKHLUVWXG\GUXJGRVLQJDQGUHVFXHPHGLFDWLRQXVH(;$&7ZLOOEHUHYLHZHGDWHDFKYLVLWDVSDUWRIWKHH'LDU\UHYLHZ
P
9LWDOVWDWXVFKHFNIRUDOOVXEMHFWV)RUVXEMHFWVZKRZLWKGUDZIURPWKHVWXG\WKHYLWDOVWDWXVFKHFNZLOOEHFRQGXFWHGWRZHHNVDIWHUWKHODVWVXEMHFWLVUDQGRPL]HG
Q
7KHVHDUHWKHPLQLPXPSURFHGXUHVWKDWVKRXOGEHFRPSOHWHGDWD7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLW

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH
7LPHG$VVHVVPHQWVIRUDOO3RVWUDQGRPL]DWLRQ,QFOLQLF9LVLWVDQG
:HHNRU)LQDO6WXG\9LVLW@



&OLQLFDO9DULDEOH
3UHGRVH
3RVWGRVH

PLQXWHV

PLQXWHV
PLQXWHV
5HYLHZRI
(OHFWURQLF'LDU\D
;


9LWDO6LJQVE
;

;
6SLURPHWU\
;
;

/HDG(&*F
;


&OLQLFDO
/DERUDWRU\
7HVWLQJG
;


6WXG\'UXJ
&ROOHFWLRQH
;


%',7',
;


6*54
;


(4'/
;


$EEUHYLDWLRQV%',7', %DVHOLQH'\VSQHD,QGH[7UDQVLWLRQ'\VSQHD,QGH[
(&* HOHFWURFDUGLRJUDP(4'/ (XUR4RO'LPHQVLRQV4XHVWLRQQDLUH6*54 6W
*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH
1RWH7KHWLPHSRLQWDWZKLFKGRVLQJLVWRRFFXULVUHJDUGHGDV³PLQXWHV´:KHQGDWD
FROOHFWLRQWLPHSRLQWVDUHFRQFXUUHQWLWLVUHFRPPHQGHGWKDWYDULDEOHVEHFROOHFWHGLQWKH
IROORZLQJRUGHU%',7',6*54(4'/YLWDOVLJQV(&*DQGFOLQLFDOODERUDWRU\
DVVHVVPHQWV
 7KLVLVQRWDWLPHGDVVHVVPHQW6LWHVVKRXOGSODQWRSHUIRUPWKHVHDFWLYLWLHVVRDVQRWWR
LQWHUIHUHZLWKFROOHFWLRQRIWLPHGDVVHVVPHQWVVXFKDVYLWDOVLJQVDQG(&*V
D (;$&7ZLOOEHUHYLHZHGDWHDFKYLVLWDVSDUWRIWKHVXEMHFWGLDU\UHYLHZ5HIHUWR6HFWLRQ
IRUGHWDLOVRQVXEMHFWGLDU\UHYLHZ
E 7HPSHUDWXUHZLOOEHREWDLQHGSUHGRVHDWDOOYLVLWVDQGZLOOQRWEHUHSHDWHGSRVWGRVHDW
VXEVHTXHQWWLPHSRLQWVXQOHVVFOLQLFDOO\LQGLFDWHG5HIHUWR6HFWLRQIRUYLWDOVLJQV
DVVHVVPHQWVDQGVSHFLILFWLPHSRLQWV
F (&*VZLOOEHSHUIRUPHGDW9LVLWVDQG:HHNRU)LQDO6WXG\9LVLWRQO\'D\
DQG:HHNVDQGVHH7DEOH5HIHUWR6HFWLRQIRU(&*DVVHVVPHQWVDQG
VSHFLILFWLPHSRLQWV
G &OLQLFDOODERUDWRU\WHVWVZLOOEHSHUIRUPHGDW9LVLWVDQG:HHNRU)LQDO6WXG\
9LVLWRQO\'D\DQG:HHNVDQGVHH7DEOH$OOFOLQLFDOODERUDWRU\WHVWV
KHPDWRORJ\FKHPLVWU\DQGXULQDO\VLVZLOOEHDVVHVVHGZLWKLQPLQXWHVSULRUWRGRVLQJ
DWWKHVHYLVLWV)HPDOHVRIFKLOGEHDULQJSRWHQWLDOZLOOXQGHUJRDXULQHK&*VFUHHQLQJDWLQ
FOLQLF9LVLWVDQG'D\:HHN5HIHUWR6HFWLRQIRUFOLQLFDOODERUDWRU\
DVVHVVPHQWVDQGVSHFLILFWLPHSRLQWV
H $WWKHVWDUWRIHDFKWUHDWPHQWYLVLWVXEMHFWVPXVWZLWKKROGDOO&23'PHGLFDWLRQVLQFOXGLQJ
VWXG\PHGLFDWLRQDQGUHVFXH9HQWROLQ+)$IRUDWOHDVWKRXUVSULRUWRVWDUWRIWHVWGD\
SURFHGXUHV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

9LVLW6FUHHQLQJ
 2EWDLQLQIRUPHGFRQVHQW
 5HJLVWHUWKHVXEMHFWLQ,:56WRREWDLQVXEMHFWVFUHHQLQJQXPEHU
 2EWDLQGHPRJUDSKLFGDWDLQFOXGLQJDJHUDFHVPRNLQJKLVWRU\VWDWXVPHGLFDOVXUJLFDO
KLVWRU\LQFOXGLQJFDUGLRYDVFXODUULVNIDFWRUVDQGKLVWRU\DQGDJHRIRQVHWRI&23'
 5HYLHZLQFOXVLRQH[FOXVLRQFULWHULD
 2EWDLQPHGLFDWLRQKLVWRU\LQFOXGLQJ&23'PHGLFDWLRQV
 &RQGXFWDVHUXPSUHJQDQF\WHVWIRUDOOIHPDOHVXEMHFWVXQOHVVLWLVGRFXPHQWHGLQWKH
PHGLFDOKLVWRU\WKDWWKHVXEMHFWKDVEHHQLUUHYHUVLEO\VXUJLFDOO\VWHULOL]HGK\VWHUHFWRP\
RRSKRUHFWRP\RUELODWHUDOWXEDOOLJDWLRQRUWKH\DUHDWOHDVW\HDUVSRVWPHQRSDXVDO
 &RQGXFWDFRPSOHWHSK\VLFDOH[DPLQDWLRQJHQHUDODSSHDUDQFHVNLQKHDGH\HVHDUV
QRVHWKURDWQHFN>LQFOXGLQJWK\URLG@O\PSKQRGHVFKHVWKHDUWDEGRPHQH[WUHPLWLHV
DQGQHUYRXVV\VWHP
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
1RWH$GYHUVHHYHQWVWKDWRFFXUGXULQJWKH6FUHHQLQJ3HULRG9LVLWWR9LVLWEHIRUH
VWXG\GUXJGRVLQJZLOOEHVXPPDUL]HGDVPHGLFDOKLVWRU\DQGQRWDVDVWXG\$(XQOHVV
WKHHYHQWPHHWVWKHGHILQLWLRQRIDQ6$(
 2EWDLQKHLJKWZHLJKWDQGYLWDOVLJQV+5DQGEORRGSUHVVXUHDIWHUEHLQJVXSLQHRUVHDWHG
IRUPLQXWHVDQGRUDORUW\PSDQLFWHPSHUDWXUH
 2EWDLQDOHDG(&*
 2EWDLQ&$7
 &RQGXFWVSLURPHWU\DVVHVVPHQWV
 &RQILUPVXEMHFW¶VDELOLW\WRXVH0',FRUUHFWO\SURYLGHFRDFKLQJDVQHHGHG
 ,IVXEMHFWTXDOLILHVWRFRQWLQXHWR9LVLWSHUIRUPWKHIROORZLQJ
o 2EWDLQODERUDWRU\VDPSOHVKHPDWRORJ\FKHPLVWU\DQGXULQDO\VLV
o ,I&KHVW[UD\RU&7ZLWKLQPRQWKVRI9LVLW6FUHHQLQJLVQRWDYDLODEOHREWDLQD
QHZ&KHVW[UD\H[FHSWLQFRXQWULHVZLWKUHVWULFWLYHUDGLRORJ\DVVHVVPHQWSUDFWLFH
ZKHUHRQO\VXEMHFWVZKRKDYHKDGDFKHVW[UD\RU&7VFDQWKRUD[SHUIRUPHG
RXWVLGHRIWKHVWXG\LQWKHODVWPRQWKVDUHDOORZHGWREHHQUROOHG$OWHUQDWLYHO\LQ
WKHVHFRXQWULHVDQ05,PD\EHXVHGLQVWHDGRID&7VFDQRUFKHVW[UD\DVSHUORFDO
SUDFWLFHDVVHVVPHQW
o 6WRSSURKLELWHG&23'PHGLFDWLRQVDQGFKDQJHFRQFXUUHQW&23'PHGLFDWLRQVDV
VSHFLILHGLQSURWRFROUHIHUWR6HFWLRQ
o 2EWDLQVXEMHFWDVVLJQPHQWLQIRUPDWLRQRI9HQWROLQ+)$IURP,:56DQGSURYLGH
VXEMHFWVZLWKVWXG\GUXJDVDVVLJQHGE\,:56
o 'LVSHQVHDQGWUDLQVXEMHFWRQH'LDU\XVH
o 'XULQJWKH6FUHHQLQJ3HULRGVXEMHFWVWKDWDUHUHFHLYLQJDQ,&6/$%$ZLOO
GLVFRQWLQXHWKH,&6/$%$EXWZLOOFRQWLQXHWKH,&6FRPSRQHQWIRUWKHUHPDLQGHURI
WKH6FUHHQLQJ3HULRG6LPLODUO\VXEMHFWVWUHDWHGZLWKDQ,&6DVSDUWRIWKHLULQKDOHG
PDLQWHQDQFHWKHUDS\ZLOODOVREHSHUPLWWHGWRFRQWLQXHWKHLU,&6IRUWKHUHPDLQGHURI

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
WKH6FUHHQLQJ3HULRG9HQWROLQ+)$DOEXWHUROVXOIDWHLQKDODWLRQDHURVROZLOOEH
SURYLGHGIRUUHVFXHXVHWKURXJKRXWWKHVWXG\
o ,QRUGHUWRDOORZIRUDGHTXDWHZDVKRXWRISUHYLRXVPDLQWHQDQFHPHGLFDWLRQVVXEMHFWV
ZLOOXQGHUJRD:DVKRXW3HULRGRIDWOHDVWZHHNDWOHDVWZHHNVLIWDNLQJ6SLULYD
EXWQRWJUHDWHUWKDQGD\VLQGXUDWLRQSULRUWRUHWXUQLQJWRWKHFOLQLFIRU9LVLW,Q
LQVWDQFHVZKHUHDQH[DFHUEDWLRQKDVRFFXUUHGGXULQJWKH6FUHHQLQJ3HULRGWKH
6FUHHQLQJ3HULRGPD\EHH[WHQGHGWRDPD[LPXPRIZHHNVWRDFFRXQWIRUD
FRXUVHRI2&6RIXSWRZHHNVLQGXUDWLRQDQGDZHHNSHULRGDIWHUWUHDWPHQWIRU
H[DFHUEDWLRQ
 ,QKDODWLRQ'HYLFHDQG'RVH,QGLFDWRU7UDLQLQJ6HH$SSHQGLFHVDQG
 6FKHGXOH9LVLW
o $GYHUVHHYHQWVDQG&23'H[DFHUEDWLRQVPXVWEHUHFRUGHGGXULQJWKH
6FUHHQLQJ3HULRGWKDWLVIURPWKHWLPHRIFRQVHQWWRWKHVWDUWRIVWXG\
WUHDWPHQW
o ,WLVUHFRPPHQGHGWKDWVLWHVFDOOVXEMHFWVRQWKHGD\EHIRUHWKHLUVFKHGXOHG
9LVLWDQGUHPLQGWKHPRIWKHVHH[SHFWDWLRQVIRUWKHXSFRPLQJYLVLW
o 6XEMHFWVZLOOEHLQVWUXFWHGWREULQJWKHLUH'LDU\DQG6SRQVRUSURYLGHG9HQWROLQ+)$
WRWKHQH[WVFKHGXOHGFOLQLFYLVLW

9LVLW6FUHHQLQJ
 5HYLHZVXEMHFWGLDU\HQWULHVDQGUHWUDLQVXEMHFWLIVXEMHFWKDVQRWPHWGLDU\FRPSOLDQFH
UHTXLUHPHQWRIVXEMHFWFRPSOHWLRQRIGLDU\DVVHVVPHQWV
 'HWHUPLQHWLPHRIODVWGRVHRIVKRUWDFWLQJEURQFKRGLODWRUDQGRWKHU&23'PHGLFDWLRQV
LIKRXUV9LVLWPXVWEHUHVFKHGXOHG
 5HYLHZLQFOXVLRQH[FOXVLRQFULWHULDDQGFRQILUPVXEMHFWHOLJLELOLW\WRFRQWLQXH
 5HYLHZVPRNLQJVWDWXV
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
1RWH$GYHUVHHYHQWVWKDWRFFXUGXULQJWKH6FUHHQLQJ3HULRG9LVLWWR9LVLWSUH
VWXG\GUXJGRVLQJZLOOEHVXPPDUL]HGDVPHGLFDOKLVWRU\DQGQRWDVDVWXG\$(VXQOHVV
WKHHYHQWPHHWVWKHGHILQLWLRQRIDQ6$(
 5HYLHZDOOSULRUPHGLFDWLRQVDQGHQVXUHDGKHUHQFHWR&23'UHJLPHQ
 2EWDLQYLWDOVLJQVPLQXWHVSUHEURQFKRGLODWRUDQGPLQXWHVSRVWEURQFKRGLODWRU
 3HUIRUPUHYHUVLELOLW\WHVWWR9HQWROLQ+)$VHHV6HFWLRQIRULQVWUXFWLRQVDQG
FRQILUPLIVXEMHFWFRQWLQXHVWRPHHWHQWU\FULWHULDEDVHGRQSUHDQGSRVWGRVHVSLURPHWU\
TXDOLW\VHH6HFWLRQ([FOXVLRQ&ULWHULRQWDQGSRVWGRVHVSLURPHWU\YDOXHV
 2EWDLQVSLURPHWU\SUHEURQFKRGLODWRUDQGPLQXWHVDQGPLQXWHVSRVW
EURQFKRGLODWRU
 ,QKDODWLRQ'HYLFHDQG'RVH,QGLFDWRU7UDLQLQJ6HH$SSHQGLFHVDQG
 6FKHGXOH9LVLW
1RWH9LVLWFDQEHVFKHGXOHGDPLQLPXPRIGD\DIWHU9LVLWDQGQRODWHUWKDQ
GD\VDIWHU9LVLW6FUHHQLQJ,QLQVWDQFHVZKHUHDQH[DFHUEDWLRQKDVRFFXUUHGGXULQJ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
WKH6FUHHQLQJ3HULRGWKH6FUHHQLQJ3HULRGPD\EHH[WHQGHGWRDPD[LPXPRIZHHNV
WRDFFRXQWIRUDFRXUVHRIRUDOFRUWLFRVWHURLGVRIXSWRZHHNVLQGXUDWLRQDQGDZHHN
SHULRGDIWHUWUHDWPHQWRIWKHH[DFHUEDWLRQ
 (QVXUHVXEMHFWKDVDGHTXDWHVXSSO\RI6SRQVRUSURYLGHGUHVFXH9HQWROLQ+)$
 3URYLGHVXEMHFWVZLWK9HQWROLQ
 6XEMHFWVZLOOEHLQVWUXFWHGWREULQJWKHLUH'LDU\DQG6SRQVRUSURYLGHG9HQWROLQ+)$WR
WKHQH[WVFKHGXOHGFOLQLFYLVLW

9LVLW5DQGRPL]DWLRQ'D\
 5HYLHZVXEMHFWGLDU\HQWULHVDQGVFUHHQIDLOVXEMHFWLIVXEMHFWKDVQRWPHWGLDU\
FRPSOLDQFHUHTXLUHPHQWRIVXEMHFWFRPSOHWLRQRIGLDU\DVVHVVPHQWVLQWKHODVW
GD\VSUHFHGLQJ9LVLW
 +DYHVXEMHFWFRPSOHWH%',TXHVWLRQQDLUHIROORZHGE\6*54TXHVWLRQQDLUHDQG(4'
/EHIRUHDQ\RWKHUVWXG\SURFHGXUHVDUHSHUIRUPHG
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
 5HYLHZVPRNLQJVWDWXV
 $XULQHSUHJQDQF\WHVWZLOOEHSHUIRUPHGIRUZRPHQRIFKLOGEHDULQJSRWHQWLDO
 5HYLHZDOOFRQFRPLWDQWPHGLFDWLRQVDQGHQVXUHDGKHUHQFHWR&23'UHJLPHQ
 &ROOHFW6SRQVRUSURYLGHG9HQWROLQ+)$GLVSHQVHGGXULQJWKH6FUHHQLQJ3HULRG
o 9HQWROLQ+)$ZLOOEHSURYLGHGIRUUHVFXHXVHWKURXJKRXWWKHVWXG\
 5HYLHZLQFOXVLRQH[FOXVLRQFULWHULDDQGFRQILUPVXEMHFWHOLJLELOLW\IRUUDQGRPL]DWLRQ
 2EWDLQVXEMHFWUDQGRPL]DWLRQQXPEHUDQGWUHDWPHQWDVVLJQPHQWLQIRUPDWLRQIURP,:56
1RWH7KHVXEMHFWLVWREHFRQVLGHUHGUDQGRPL]HGDIWHUUHFHLYLQJDUDQGRPL]DWLRQ
QXPEHU
 &RPSOHWHDOOSUHGRVHDVVHVVPHQWVUHIHUWR7DEOH
o 2EWDLQFHQWUDOODERUDWRU\WHVWV
o 2EWDLQYLWDOVLJQVDQG(&*VWZLFHDWOHDVWILYHPLQXWHVDSDUWPLQXWHVSUHGRVH
 3HUIRUPVSLURPHWU\DVVHVVPHQWVDQGPLQXWHVSUHGRVHVHH7DEOH
 7RDOORZIRUSURSHUSUHSDUDWLRQRIVWXG\GUXJLWLVUHFRPPHQGHGWKDWWKHVHDODURXQGWKH
VWXG\GD\WUHDWPHQWER[LVRSHQHGWRPLQXWHVSULRUWRGRVLQJDQGWKHLQVWUXFWLRQV
IRUDGPLQLVWUDWLRQRIVWXG\GUXJIROORZHG
 5HIHUWR$SSHQGL[IRUGHWDLOHGLQVWUXFWLRQVIRUSUHSDUDWLRQRIWUHDWPHQWVIRU
DGPLQLVWUDWLRQ7KHVHLQVWUXFWLRQVDUHWREHDGKHUHGWRDQGDUHUHOHYDQWWRDOOVWXG\
WUHDWPHQWYLVLWV
 5HFRUGGRFXPHQWWKHGRVHLQGLFDWRUUHDGLQJ7KHGRVHLQGLFDWRUFRXQWUHFRUGHGE\WKH
VLWHVWDIIZLOOEHGRVHLQGLFDWRUFRXQWREVHUYHGDIWHUSULPLQJEXWSULRUWRVXEMHFWGRVLQJ
)RUQHZ0',VWKHUHFRUGHGFRXQWZLOOEHWKHFRXQWIROORZLQJWKHSULPLQJRIWKHGHYLFH
EXWEHIRUHWKHVXEMHFWGRVH
 6XEMHFWZLOODGPLQLVWHUILUVWGRVHRIUDQGRPL]HGVWXG\GUXJDWWKHFOLQLF
 3HUIRUPDOOSRVWGRVLQJDVVHVVPHQWVVHH7DEOH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
o 2EWDLQYLWDOVLJQVPLQXWHVSRVWGRVH
 5HWXUQH'LDU\WRVXEMHFWVDQGSURYLGHUHWUDLQLQJLIDSSURSULDWH
 6XEMHFWVZLOOEHLQVWUXFWHGWREULQJWKHLUH'LDU\DQGDOOLVVXHGVWXG\GUXJLQFOXGLQJXVHG
VWXG\GUXJDQGUHVFXH9HQWROLQ+)$WRWKHQH[WVFKHGXOHGFOLQLFYLVLW
 ,QKDODWLRQ'HYLFHDQG'RVH,QGLFDWRU7UDLQLQJVHH$SSHQGLFHVDQG
 3URYLGHVXEMHFWVZLWKVWXG\GUXJDVDVVLJQHGE\,:56
 6FKHGXOH9LVLWDQGHQVXUHVXEMHFWKDVDGHTXDWHVXSSO\RIVWXG\GUXJLQFOXGLQJUHVFXH
9HQWROLQ+)$

,Q&OLQLF9LVLWVDQG:HHNVDQG
 5HYLHZVXEMHFWH'LDU\IRUGDWDFROOHFWLRQFRPSOLDQFH
 'HWHUPLQHWLPHRIODVWGRVHRIVKRUWDFWLQJEURQFKRGLODWRUDQGRWKHU&23'PHGLFDWLRQV
LIKRXUVYLVLWPXVWEHUHVFKHGXOHG
 5HYLHZVPRNLQJVWDWXV
 $XULQHSUHJQDQF\WHVWZLOOEHSHUIRUPHGIRUZRPHQRIFKLOGEHDULQJSRWHQWLDODW9LVLW
RQO\
 &RQILUPVXEMHFWHOLJLELOLW\WRFRQWLQXH
 &RQILUPWKHVXEMHFWWRRNWKHLUODVWGRVHRIUDQGRPL]HGVWXG\GUXJDVVFKHGXOHGWKHSULRU
HYHQLQJ,IWKHWLPHRIGRVLQJZDVQRWLQDFFRUGDQFHZLWKWKHSURWRFROWKHQWKHYLVLW
PXVWEHUHVFKHGXOHG
 $WHDFKLQFOLQLFSRVWUDQGRPL]DWLRQYLVLWKDYHVXEMHFWFRPSOHWH7',TXHVWLRQQDLUH
IROORZHGE\6*54DQG(4'/TXHVWLRQQDLUHVLIDSSOLFDEOHEHIRUHDQ\RWKHUVWXG\
SURFHGXUHVDUHSHUIRUPHG
 &ROOHFW+&58LQIRUPDWLRQ
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
 5HYLHZDOOFRQFRPLWDQWPHGLFDWLRQVDQGHQVXUHDGKHUHQFHWR&23'UHJLPHQ
 3HUIRUPDOOSUHGRVHDVVHVVPHQWVVHH7DEOH
o 2EWDLQFHQWUDOODERUDWRU\WHVWVDW9LVLWVDQG
o 2EWDLQYLWDOVLJQVPLQXWHVSUHGRVHDWHDFKLQFOLQLFYLVLW
o 2EWDLQ(&*VPLQXWHVSUHGRVHDW9LVLWVDQG
o 3HUIRUPVSLURPHWU\DVVHVVPHQWVDQGPLQXWHVSUHGRVHVHH7DEOH
o 5HWXUQH'LDU\WRVXEMHFWVDQGSURYLGHUHWUDLQLQJLIDSSURSULDWH
 3ULRUWRGRVLQJVLWHSHUVRQQHOZLOOXVH,:56WRDVVLJQVXEMHFWVDGHTXDWHVXSSO\RIVWXG\
GUXJIRULQFOLQLFGRVLQJDQGWRFRQWLQXHGRVLQJDWKRPHXQWLOWKHQH[WVFKHGXOHGYLVLW
o 6HH6HFWLRQIRUGHWDLOHGLQVWUXFWLRQVIRUSUHSDUDWLRQRIWUHDWPHQWVIRU
DGPLQLVWUDWLRQ7KHVHLQVWUXFWLRQVDUHWREHDGKHUHGWRDQGDUHUHOHYDQWWRDOOVWXG\
WUHDWPHQWYLVLWV
o 5HFRUGGRFXPHQWWKHGRVHLQGLFDWRUUHDGLQJVRIWKHXVHG0',DQGWKHUHSODFHPHQW
0',

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
o )RUQHZ0',VWKHUHFRUGHGFRXQWZLOOEHWKHFRXQWIROORZLQJWKHSULPLQJRIWKH
GHYLFHEXWEHIRUHWKHVXEMHFWGRVHV
 $GPLQLVWHULQFOLQLFVWXG\GUXJGRVHIURPWKHQHZNLWDVVLJQHGDWWKHYLVLW
 3HUIRUPDOOSRVWGRVLQJDVVHVVPHQWVUHIHUWR7DEOH
o 2EWDLQYLWDOVLJQVPLQXWHVSRVWGRVH
 6XEMHFWVZLOOEHLQVWUXFWHGWRWUDFNVWXG\GUXJGRVLQJLQWKHLUH'LDU\EHWZHHQVWXG\FOLQLF
YLVLWV
 6XEMHFWVZLOOEHLQVWUXFWHGWRGRVHZKLOHDWKRPHIURPWKHVLWHSULPHG0',RQO\XQWLODOO
RIWKHIROORZLQJUHSODFHPHQWFRQGLWLRQVDUHPHW
o 'RVHLQGLFDWRULVLQWKHUHG]RQH6HH$SSHQGL[IRUGRVHLQGLFDWRUUHDGLQJ
LQVWUXFWLRQV
o 7KHGRVHLQGLFDWRUUHJLVWHUVSXIIVUHPDLQLQJDQGWKHLUQH[WVFKHGXOHGVWXG\
FOLQLFYLVLWLVQRWWKHIROORZLQJGD\
 ,IWKHVHFRQGLWLRQVDUHPHWVXEMHFWVZLOOEHLQVWUXFWHGWRRSHQWKHLUVXSSOHPHQWDONLW
SULPHWKH0',DQGVWDUWXVLQJLWIRUDWKRPHGRVLQJXQWLOWKHQH[WVFKHGXOHGVWXG\FOLQLF
YLVLW
 3URYLGHVXEMHFWVZLWKVWXG\GUXJDVDVVLJQHGE\,:56
 6XEMHFWVZLOOEHLQVWUXFWHGWREULQJWKHLUH'LDU\DQGDOOVWXG\GUXJLQFOXGLQJXVHGVWXG\
GUXJDQG6SRQVRUSURYLGHGUHVFXH9HQWROLQ+)$WRWKHQH[WVFKHGXOHGFOLQLFYLVLW
 6FKHGXOHQH[WYLVLWDQGHQVXUHVXEMHFWKDVDGHTXDWHVXSSO\RIVWXG\GUXJLQFOXGLQJ
6SRQVRUSURYLGHGUHVFXH9HQWROLQ+)$
 )RUVXEMHFWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWUDQGRPL]HGVWXG\PHGLFDWLRQDQG
FRQWLQXHLQWKHVWXG\WKHVFKHGXOHGVWXG\YLVLWGDWDFROOHFWLRQDQGSURFHGXUHVZLOOEH
GRQHDFFRUGLQJWRWKHVWXG\SURWRFROVHH6HFWLRQVDQG

7HOHSKRQH&RQWDFWDW9LVLWVDQG:HHNV
DQG
 &ROOHFW+&58LQIRUPDWLRQ
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
 5HYLHZDOOFRQFRPLWDQWPHGLFDWLRQVDQGHQVXUHDGKHUHQFHWR&23'UHJLPHQ
 5HYLHZVPRNLQJVWDWXV
 6XEMHFWVZLOOEHLQVWUXFWHGWRWUDFNVWXG\GUXJGRVLQJLQWKHLUH'LDU\EHWZHHQVWXG\FOLQLF
YLVLWV
 6XEMHFWVZLOOEHLQVWUXFWHGWREULQJWKHLUH'LDU\DQGDOOVWXG\GUXJLQFOXGLQJXVHGVWXG\
GUXJDQG6SRQVRUSURYLGHGUHVFXH9HQWROLQ+)$WRWKHQH[WVFKHGXOHGFOLQLFYLVLW
 6FKHGXOHQH[WYLVLWDQGHQVXUHVXEMHFWKDVDGHTXDWHVXSSO\RIVWXG\GUXJLQFOXGLQJD
6SRQVRUSURYLGHGUHVFXH9HQWROLQ+)$
 )RUVXEMHFWVZKRGLVFRQWLQXHWUHDWPHQWUDQGRPL]HGVWXG\PHGLFDWLRQDQGFRQWLQXHLQ
WKHVWXG\WKHVFKHGXOHGVWXG\YLVLWGDWDFROOHFWLRQDQGSURFHGXUHVZLOOEHFRPSOHWHG
DFFRUGLQJWRWKHVWXG\SURWRFROVHH6HFWLRQVDQG

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

9LVLW:HHNRU)LQDO6WXG\9LVLW
 5HYLHZVXEMHFWH'LDU\IRUGDWDFROOHFWLRQFRPSOLDQFH
 'HWHUPLQHWLPHRIODVWGRVHRIVKRUWDFWLQJEURQFKRGLODWRUDQGRWKHU&23'PHGLFDWLRQV
LIKRXUVWKHYLVLWPXVWEHUHVFKHGXOHG
 5HYLHZVPRNLQJVWDWXV
 &RQGXFWDVHUXPSUHJQDQF\WHVWIRUDOOIHPDOHVXEMHFWVXQOHVVLWLVGRFXPHQWHGLQWKH
PHGLFDOKLVWRU\WKDWWKHVXEMHFWKDVEHHQLUUHYHUVLEO\VXUJLFDOO\VWHULOL]HGK\VWHUHFWRP\
RRSKRUHFWRP\RUELODWHUDOWXEDOOLJDWLRQRUWKH\DUHDWOHDVW\HDUVSRVWPHQRSDXVDO
 &RQILUPVXEMHFWHOLJLELOLW\WRFRQWLQXH
 &RQILUPWKHVXEMHFWWRRNWKHLUODVWGRVHRIUDQGRPL]HGVWXG\GUXJDVVFKHGXOHGWKHSULRU
HYHQLQJ,IWKHWLPHRIGRVLQJZDVQRWLQDFFRUGDQFHZLWKWKHSURWRFROWKHQWKHYLVLW
PXVWEHUHVFKHGXOHG
 3HUIRUPDOOSUHGRVHDVVHVVPHQWVVHH7DEOH
o 2EWDLQFHQWUDOODERUDWRU\WHVWV
o 2EWDLQYLWDOVLJQVDQG(&*VPLQXWHVSUHGRVH
 3HUIRUPVSLURPHWU\DVVHVVPHQWVDQGPLQXWHVSUHGRVHVHH7DEOH
 &RQGXFWDSK\VLFDOH[DPLQDWLRQLQFOXGLQJZHLJKW
 +DYHVXEMHFWFRPSOHWH7',TXHVWLRQQDLUHIROORZHGE\6*54DQG(4'TXHVWLRQQDLUHV
EHIRUHDQ\RWKHUVWXG\SURFHGXUHVDUHSHUIRUPHG
 &ROOHFW+&58LQIRUPDWLRQ
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
 5HYLHZDOOFRQFRPLWDQWPHGLFDWLRQVDQGHQVXUHDGKHUHQFHWR&23'UHJLPHQ
 3ULRUWRGRVLQJVLWHSHUVRQQHOZLOOXVH,:56WRDVVLJQVXEMHFWVDQHZNLWRIVWXG\GUXJ
IRULQFOLQLFGRVLQJ
o 6HH6HFWLRQIRUGHWDLOHGLQVWUXFWLRQVIRUSUHSDUDWLRQRIWUHDWPHQWVIRU
DGPLQLVWUDWLRQ7KHVHLQVWUXFWLRQVDUHWREHDGKHUHGWRDQGDUHUHOHYDQWWRDOOVWXG\
WUHDWPHQWYLVLWV
o 5HFRUGGRFXPHQWWKHGRVHLQGLFDWRUUHDGLQJVRIWKHXVHG0',DQGWKHUHSODFHPHQW
0',
o )RUWKHQHZ0',WKHUHFRUGHGFRXQWZLOOEHWKHFRXQWIROORZLQJWKHSULPLQJRIWKH
GHYLFHEXWEHIRUHWKHVXEMHFWGRVHV
 $GPLQLVWHULQFOLQLFVWXG\GUXJGRVHIURPWKHQHZNLWDVVLJQHGDWWKHYLVLW
 3HUIRUPDOOSRVWGRVLQJDVVHVVPHQWVUHIHUWR7DEOH
o 2EWDLQYLWDOVLJQVPLQXWHVSRVWGRVH
 &ROOHFWVXEMHFWH'LDU\
 &ROOHFWDOOVWXG\GUXJVLQFOXGLQJ6SRQVRUSURYLGHG9HQWROLQ+)$
 $WFRPSOHWLRQRIDOO9LVLW:HHNRU)LQDO6WXG\9LVLWDVVHVVPHQWVUHWXUQVXEMHFW
WRSUHVWXG\RUDSSURSULDWHPDLQWHQDQFH&23'PHGLFDWLRQV
 ,QIRUPVXEMHFWDERXWUHSRUWLQJDOO6$(VXSWRGD\VIROORZLQJWKHODVWGRVHRIVWXG\
GUXJ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 6FKHGXOHWKHIROORZXS7&DWOHDVWGD\VIURP9LVLW:HHNRU)LQDO6WXG\9LVLW

3URFHGXUHVIRU7UHDWPHQW'LVFRQWLQXDWLRQDQG6WXG\:LWKGUDZDO
6XEMHFWV
6XEMHFWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWSULRUWRWKHHQGRIWKHVWXG\ZLOOEHHQFRXUDJHGWR
UHPDLQLQWKHVWXG\WRFRPSOHWHDOOUHPDLQLQJVWXG\YLVLWVGXULQJWKHUDQGRPL]HGWUHDWPHQW
SHULRG6XEMHFWVZKRDJUHHWRFRQWLQXHWREHIROORZHGSRVWWUHDWPHQWGLVFRQWLQXDWLRQZLOO
VLJQDQ,&)DGGHQGXP$OOVXEMHFWVZKRDJUHHWRFRQWLQXHVWXG\SDUWLFLSDWLRQEH\RQG
WUHDWPHQWGLVFRQWLQXDWLRQZLOOFRPSOHWHD7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLW
UHIHUWR6HFWLRQSULRUWRWUDQVLWLRQLQJEDFNWRUHJXODUO\VFKHGXOHGVWXG\
YLVLWV7UHDWPHQWGLVFRQWLQXDWLRQVXEMHFWVZLOOUHWXUQWRDSSURSULDWHPDLQWHQDQFH&23'
PHGLFDWLRQVSHUWKH,QYHVWLJDWRUVGLVFUHWLRQ)RUWKRVHVXEMHFWVZKRGLVFRQWLQXHVWXG\
WUHDWPHQWEXWFRQWLQXHWRSDUWLFLSDWHLQWKHVWXG\WRFRPSOHWHDOOUHPDLQLQJVWXG\YLVLWVDOO
$(V6$(VZLOOEHFROOHFWHGWKURXJKWKHGD\IROORZXSWHOHSKRQHFDOO
)RUVXEMHFWVUHFRUGHGDV7UHDWPHQW'LVFRQWLQXDWLRQVWKDWGRQRWFRPSOHWHDWOHDVWRQHSRVW
WUHDWPHQWGDWDFROOHFWLRQDWHOHSKRQHIROORZXSFDOOLVUHTXLUHGDWOHDVWGD\VDIWHUODVW
VWXG\GUXJGRVH$OO$(V6$(VZLOOEHFROOHFWHGWKURXJKWKHGD\IROORZXSWHOHSKRQHFDOO
,IDVXEMHFWFKRRVHVQRWWRFRQWLQXHZLWKVWXG\DVVHVVPHQWVDWDPLQLPXPWKHVXEMHFWZLOO
FRPSOHWHWKH7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLWUHIHUWR7DEOH7KHVH
VXEMHFWVZLOOUHWXUQWRDSSURSULDWHPDLQWHQDQFH&23'PHGLFDWLRQVSHUWKHLQYHVWLJDWRUV
GLVFUHWLRQ$IROORZXSWHOHSKRQHFDOOZLOOEHSHUIRUPHGDWOHDVWGD\VDIWHUWKHODVWVWXG\
GUXJGRVH$OO$(V6$(VZLOOEHFROOHFWHGWKURXJKWKHGD\IROORZXSWHOHSKRQHFDOO,Q
WKHHYHQWWKH7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\:LWKGUDZDO9LVLWLVSHUIRUPHG!GD\V
SRVWODVWVWXG\GUXJGRVLQJDIROORZXS7&ZLOOQRWEHUHTXLUHG7KHVHVXEMHFWVZLOOEH
IROORZHGIRUYLWDOVWDWXVZLWKLQWRZHHNVDIWHUWKHODVWVXEMHFWKDVEHHQUDQGRPL]HGLQWR
WKHVWXG\LQDFFRUGDQFHZLWKWKHLQIRUPHGFRQVHQW

8QVFKHGXOHG9LVLWDQG7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\
:LWKGUDZDO9LVLW
5HSHDWDVVHVVPHQWVLIQHHGHGZLOOEHFDSWXUHGLQXQVFKHGXOHGYLVLWV
7KHIROORZLQJPLQLPXPSURFHGXUHVZLOOEHFRPSOHWHGIRU7UHDWPHQW'LVFRQWLQXDWLRQ6WXG\
:LWKGUDZDO9LVLWV
 &RPSOHWH7',TXHVWLRQQDLUHILUVWIROORZHGE\6*54TXHVWLRQQDLUHDQG(4'/
EHIRUHDQ\RWKHUVWXG\SURFHGXUHVDUHSHUIRUPHG
 &ROOHFW+&58LQIRUPDWLRQ
 5HFRUG&23'H[DFHUEDWLRQVDQG$(VLIDQ\
 5HYLHZFRQFRPLWDQWPHGLFDWLRQV
 3HUIRUPDOOSUHGRVHDVVHVVPHQWVVHH7DEOH
o 2EWDLQFHQWUDOODERUDWRU\WHVWV
o 2EWDLQYLWDOVLJQVDQG(&*VPLQXWHVSUHGRVH
 3HUIRUPDOOSUHGRVHDVVHVVPHQWVVHH7DEOH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
o 2EWDLQFHQWUDOODERUDWRU\WHVWV
o 2EWDLQYLWDOVLJQVPLQXWHVSUHGRVH
o 2EWDLQ(&*VPLQXWHVSUHGRVH
 &RQGXFWDSK\VLFDOH[DPLQDWLRQLQFOXGLQJZHLJKW
 &ROOHFWDEORRGVDPSOHIRUSUHJQDQF\WHVWIRUZRPHQRIFKLOGEHDULQJSRWHQWLDO
 &ROOHFWVXEMHFWH'LDU\
 &ROOHFWDOOVWXG\GUXJVLQFOXGLQJUHVFXHPHGLFDWLRQV
 5HWXUQVXEMHFWWRSUHVWXG\RUDSSURSULDWHPDLQWHQDQFH&23'PHGLFDWLRQV
 ,QIRUPVXEMHFWVDOO$(V6$(VZLOOEHFROOHFWHGWKURXJKWKHGD\IROORZXSWHOHSKRQH
FDOOYLVLW
 &DSWXUHWKHUHDVRQIRUWUHDWPHQWGLVFRQWLQXDWLRQ

)ROORZXS7HOHSKRQH&DOO
6XEMHFWVZLOOEHIROORZHGXSWKURXJKD7&DWOHDVWGD\VDIWHUWKHODVWVWXG\GUXJGRVLQJ
7KHIROORZLQJLQIRUPDWLRQZLOOEHUHTXHVWHG
 &ROOHFW+&58LQIRUPDWLRQ
 5HYLHZSUHYLRXVO\RQJRLQJ&23'H[DFHUEDWLRQV
 5HYLHZDQGUHFRUG$(V6$(VLIDQ\
 5HYLHZFRQFRPLWDQWPHGLFDWLRQV
 9LWDO6WDWXV&RQILUPDWLRQ
$OOVXEMHFWVZKRZLWKGUDZIURPWKHVWXG\SULRUWRWKHHQGRIWKHVWXG\ZLOOKDYHWKHLUYLWDO
VWDWXVFRQILUPHGZLWKLQWRZHHNVDIWHUWKHODVWVXEMHFWKDVEHHQUDQGRPL]HGLQWRWKH
VWXG\
7RFRQILUPWKHYLWDOVWDWXVDQGFDXVHRIGHDWKLIDSSURSULDWHWKHIROORZLQJDWWHPSWVZLOOEH
PDGH
 7KHILUVWDQGVHFRQGDWWHPSWVPD\EHFRQGXFWHGDVWHOHSKRQHIROORZXSFDOOWRWKHVXEMHFW
ZLWKLQZHHNVDIWHUZHHNVSRVWUDQGRPL]DWLRQ
 7KHWKLUGDWWHPSWZLOOEHE\FHUWLILHGPDLOWRWKHVXEMHFW¶VDGGUHVVSURYLGHGDWWKHWLPHRI
LQIRUPHGFRQVHQWZLWKLQZHHNVDIWHUZHHNVSRVWUDQGRPL]DWLRQ
 7KHIRXUWKDWWHPSWZLOOEHPDGHDVDWHOHSKRQHIROORZXSFDOOWRWKHQH[WRI
NLQHPHUJHQF\FRQWDFWSURYLGHGDWWKHWLPHRILQIRUPHGFRQVHQWZLWKLQZHHNVDIWHU
ZHHNVSRVWUDQGRPL]DWLRQ
 $ILIWKDWWHPSWZLOOEHPDGHWKURXJKDFHUWLILHGOHWWHUWRWKHQH[WRINLQHPHUJHQF\
FRQWDFWSURYLGHGDWWKHWLPHRILQIRUPHGFRQVHQWZLWKLQZHHNVDIWHUZHHNVSRVW
UDQGRPL]DWLRQ
 $IWHUWKHILIWKDWWHPSWWKHVWXG\VLWHZLOOFRQWDFWWKHQDWLRQDOGHDWKUHJLVWULHVLIDYDLODEOH
LQWKDWFRXQWU\WRFRQILUPGDWHDQGFDXVHRIGHDWK

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 &RPSOHWLRQRIWKH6WXG\
7KH,QYHVWLJDWRUZLOOGRFXPHQWWKHVWXG\FRPSOHWLRQRUWKHUHDVRQIRUHDUO\WUHDWPHQW
GLVFRQWLQXDWLRQRUVWXG\ZLWKGUDZDOE\DVXEMHFWLQWKHH&5)
1RWH7KH(QGRI6WXG\LVGHILQHGDVWKHGDWHRQZKLFKGDWDDUHFROOHFWHGIRUWKHODVW
VXEMHFW¶V)ROORZXS7HOHSKRQH&DOO
7KHIROORZLQJFDWHJRULHVVKRXOGEHXVHGWRGHVFULEHWKHVHHYHQWVLQWKHH&5)
 6XEMHFWGLVFUHWLRQGRFXPHQWUHDVRQ
 ,QYHVWLJDWRUFRQVLGHUVLWWREHLQWKHEHVWLQWHUHVWRIWKHVXEMHFW
 $(V6$(V
 $GPLQLVWUDWLYHUHDVRQVHJHDUO\WHUPLQDWLRQRIWKHVWXG\
 6XEMHFWORVWWRIROORZXS
 /DFNRIHIILFDF\
 0DMRUSURWRFROYLRODWLRQ
 'HDWK
 &RPSOHWLRQRIWKHVWXG\
 3URWRFROVSHFLILHGFULWHULDVHH6HFWLRQ



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

3/$11('67$7,67,&$/0(7+2'6

,QWURGXFWLRQ
7KLVLVDGRXEOHEOLQGSDUDOOHOJURXSVWXG\HYDOXDWLQJWKHHIILFDF\DQGVDIHW\RIWKUHHWUHDWPHQW
JURXSVRYHUDYDULDEOHOHQJWKWRZHHNWUHDWPHQWSHULRGLQDSSUR[LPDWHO\VXEMHFWV
SHUWUHDWPHQWJURXSZLWKPRGHUDWHWRYHU\VHYHUH&23'ZKRKDYHDKLVWRU\RI&23'
H[DFHUEDWLRQV
6XEMHFWVZLOOEHUDQGRPL]HGLQDUDWLRWRRQHRIWKHIROORZLQJWUHDWPHQWJURXSV
x %))0',J%,'
x %))0',J%,'
x ))0',J%,'
7KHSULPDU\REMHFWLYHRIWKLVVWXG\LVWRDVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQ
OXQJIXQFWLRQLQVXEMHFWVZLWKDKLVWRU\RI&23'H[DFHUEDWLRQV,QDGGLWLRQWKLVVWXG\ZLOO
DVVHVVWKHHIIHFWVRI%))0',UHODWLYHWR))0',RQ&23'H[DFHUEDWLRQVDQGV\PSWRPV
GLVHDVHUHODWHGKHDOWKVWDWXVSXOPRQDU\IXQFWLRQVDIHW\DQGWROHUDELOLW\DQG+&58

3URWRFRO9DULDEOHV
 (IILFDF\(QGSRLQWV
5HIHUWR6HFWLRQIRUFRPSOHWHGHWDLOVRQDOOHIILFDF\HQGSRLQWV
 6DIHW\(QGSRLQWV
5HIHUWR6HFWLRQIRUFRPSOHWHGHWDLOVRQDOOVDIHW\HQGSRLQWV
 +&58(QGSRLQWV
5HIHUWR6HFWLRQIRUFRPSOHWHGHWDLOVRQDOO+&58HQGSRLQWV

(IILFDF\$QDO\VLV
7KHSULPDU\VHFRQGDU\DQGRWKHUHIILFDF\DQDO\VHVZLOOEHSHUIRUPHGIRUGLIIHUHQW
HVWLPDQGV(VWLPDQGVDQGDQDO\VLVSRSXODWLRQVDUHGLVFXVVHGLQ6HFWLRQ
 3ULPDU\(IILFDF\$QDO\VLV
 0RUQLQJ3UHGRVH7URXJK)(9
&KDQJHIURPEDVHOLQHLQPRUQLQJSUHGRVHWURXJK)(9ZLOOEHDQDO\]HGXVLQJDOLQHDU
UHSHDWHGPHDVXUHV$1&29$PRGHO7KHPRGHOZLOOLQFOXGHWUHDWPHQWYLVLWDQGWUHDWPHQW
E\YLVLWLQWHUDFWLRQDQG,&6XVHDW6FUHHQLQJ\HVQRDVFDWHJRULFDOFRYDULDWHVDQGEDVHOLQH
)(9DQGEDVHOLQHEORRGHRVLQRSKLOFRXQWDQGSHUFHQWUHYHUVLELOLW\WR9HQWROLQ+)$DV
FRQWLQXRXVFRYDULDWHV$QXQVWUXFWXUHGFRYDULDQFHPDWUL[ZLOOEHXVHGWRPRGHOZLWKLQ
VXEMHFWYDULDELOLW\DFURVVWLPHSRLQWV,IWKLVPRGHOIDLOVWRFRQYHUJHDILUVWRUGHU
DXWRUHJUHVVLYH>$5@VWUXFWXUHZLOOEHXVHGLQVWHDG&RQWUDVWVZLOOEHXVHGWRREWDLQ
HVWLPDWHVRIWKHWUHDWPHQWGLIIHUHQFHVDW:HHNDQGRYHUZHHNV7ZRVLGHGSYDOXHV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
DQGSRLQWHVWLPDWHVZLWKWZRVLGHGFRQILGHQFHLQWHUYDOVZLOOEHSURGXFHGIRUHDFK
WUHDWPHQWGLIIHUHQFH
7KHDQDO\VLVRIWKLVHQGSRLQWZLOOEHFRQGXFWHGIRUWKHHIILFDF\HVWLPDQGXVLQJWKHP,77
3RSXODWLRQZKHUHRQO\GDWDREWDLQHGSULRUWRVXEMHFWVGLVFRQWLQXLQJIURPUDQGRPL]HG
WUHDWPHQWZLOOEHXWLOL]HG7KLVSRSXODWLRQZLOOSURYLGHDQHVWLPDWHRIWKHHIILFDF\RIWKH
WUHDWPHQWVGXULQJWUHDWPHQWLQWKHUDQGRPL]HGSRSXODWLRQ6HFRQGDU\DQDO\VHVRIWKLV
HQGSRLQWZLOOEHFRQGXFWHGIRUWKHDWWULEXWDEOHHVWLPDQG
6XSSRUWLYH$QDO\VHV$QDO\VHVZLOODOVREHFRQGXFWHGIRUWKHWUHDWPHQWSROLF\HVWLPDQGLQ
WKH,773RSXODWLRQZKHUHDOOREVHUYHGGDWDZLOOEHXWLOL]HGUHJDUGOHVVRIZKHWKHUVXEMHFWV
UHPDLQRQUDQGRPL]HGWUHDWPHQW7KHXVHRIWKLVSRSXODWLRQZLOOSURYLGHDQHVWLPDWHRIWKH
WUHDWPHQWVWUDWHJ\HIIHFWLYHQHVV
 6HFRQGDU\(IILFDF\$QDO\VLV
 7LPHWR)LUVW0RGHUDWHRU6HYHUH&23'([DFHUEDWLRQ
7KHWLPHWRILUVWPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQZLOOEHDQDO\]HGXVLQJD&R[
UHJUHVVLRQPRGHO7KHPRGHOZLOOLQFOXGHWUHDWPHQWEDVHOLQHSRVWEURQFKRGLODWRUSHUFHQW
SUHGLFWHG)(9EDVHOLQH&23'H[DFHUEDWLRQKLVWRU\EDVHOLQHEORRGHRVLQRSKLO
(26FRXQWFRXQWU\DQG,&6XVHDW6FUHHQLQJ\HVQR(VWLPDWHGDGMXVWHGKD]DUGUDWLRV
UHODWLYHWRWKHFRPSDUDWRUZLOOEHGLVSOD\HGDORQJZLWKWKHDVVRFLDWHG:DOGWZRVLGHG
FRQILGHQFHLQWHUYDO&,DQGSYDOXHVIRUDOOWUHDWPHQWFRPSDULVRQV7LPHWRILUVWPRGHUDWHRU
VHYHUH&23'H[DFHUEDWLRQZLOOEHGLVSOD\HGJUDSKLFDOO\IRUHDFKWUHDWPHQWJURXSXVLQJD
.DSODQ0HLHUFXUYHDQGDQDO\]HGXVLQJDORJUDQNWHVWWRFRPSDUHWKHFXUYHVEHWZHHQWKH
WUHDWPHQWVDVDVXSSRUWLYHDQDO\VLV6XEMHFWVZKRGLGQRWH[SHULHQFHD&23'H[DFHUEDWLRQ
DQGFRPSOHWHGWKHVWXG\RQWUHDWPHQWZLOOEHFHQVRUHGDWWKHGDWHRIVWXG\FRPSOHWLRQ
6XEMHFWVZKRGLVFRQWLQXHGWUHDWPHQWHDUO\DQGGLGQRWH[SHULHQFHD&23'H[DFHUEDWLRQZLOO
EHFHQVRUHGDWWKHGD\DIWHUODVWGRVHIRUGLVFRQWLQXDWLRQRIWUHDWPHQWRUVWXG\ZLWKGUDZDO
GHSHQGLQJRQWKHHVWLPDQGLQXVH
 7LPHWR)LUVW&OLQLFDOO\,PSRUWDQW'HWHULRUDWLRQ
7KHWLPHWRILUVWFOLQLFDOO\LPSRUWDQWGHWHULRUDWLRQ&,'ZLOOEHDQDO\]HGXVLQJD&R[
UHJUHVVLRQPRGHO7KHPRGHOZLOOLQFOXGHWUHDWPHQWEDVHOLQHSRVWEURQFKRGLODWRUSHUFHQW
SUHGLFWHG)(9EDVHOLQH&23'H[DFHUEDWLRQKLVWRU\EDVHOLQHEORRGHRVLQRSKLOFRXQW
FRXQWU\DQG,&6XVHDW6FUHHQLQJ(VWLPDWHGDGMXVWHGKD]DUGUDWLRVUHODWLYHWRWKH
FRPSDUDWRUZLOOEHGLVSOD\HGDORQJZLWKWKHDVVRFLDWHG:DOGWZRVLGHGFRQILGHQFH
LQWHUYDO&,DQGSYDOXHVIRUDOOWUHDWPHQWFRPSDULVRQV7LPHWRILUVW&,'ZLOOEHGLVSOD\HG
JUDSKLFDOO\IRUHDFKWUHDWPHQWJURXSXVLQJD.DSODQ0HLHUFXUYHDQGDQDO\]HGXVLQJDORJ
UDQNWHVWWRFRPSDUHWKHFXUYHVEHWZHHQWKHWUHDWPHQWVDVDVXSSRUWLYHDQDO\VLV6XEMHFWV
ZKRGLGQRWH[SHULHQFHD&,'DQGFRPSOHWHGWKHVWXG\ZLOOEHFHQVRUHGDWWKHGDWHRIVWXG\
FRPSOHWLRQ6XEMHFWVZKRGLVFRQWLQXHGWUHDWPHQWHDUO\DQGGLGQRWH[SHULHQFHD&23'
H[DFHUEDWLRQZLOOEHFHQVRUHGDWWKHGD\DIWHUODVWGRVHIRUGLVFRQWLQXDWLRQRIWUHDWPHQWRU
VWXG\ZLWKGUDZDOGHSHQGLQJRQWKHHVWLPDQGLQXVH
$FOLQLFDOO\LPSRUWDQWGHWHULRUDWLRQLVGHILQHGDVRQHRUPRUHRIWKHIROORZLQJHYHQWV
RFFXUULQJ
x $GHFUHDVHIURPEDVHOLQHRIP/RUPRUHLQWURXJK)(9
x $FKDQJHIURPEDVHOLQHRIRUPRUHLQ6*54

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
x $7',IRFDOVFRUHRISRLQWRUOHVV
x $QRFFXUUHQFHRIDPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQ
 5HVFXH9HQWROLQ+)$8VDJH
7KHQXPEHURISXIIVRIUHVFXHPHGLFDWLRQXVHWDNHQLQWKHSUHYLRXVKRXUVZLOOEHUHFRUGHG
LQWKHVXEMHFWGLDU\LQWKHPRUQLQJDQGHYHQLQJ'LDU\GDWDUHFRUGHGGXULQJWKHODVWGD\VRI
WKH6FUHHQLQJ3HULRGZLOOEHXVHGWRFDOFXODWHWKHEDVHOLQH7KHPHDQGDLO\QXPEHURISXIIV
RIUHVFXHPHGLFDWLRQXVHZLOOEHFDOFXODWHGRYHUDQGZHHNV)RUHYHU\SHULRGRIWLPH
IRUZKLFKWKHPHDQQXPEHURISXIIVRIUHVFXHZLOOEHFDOFXODWHGPLVVLQJYDOXHVZLOOEH
LJQRUHGLQERWKWKHQXPHUDWRUDQGGHQRPLQDWRU$VVXFKWKHGHQRPLQDWRUZLOOEHDGMXVWHG
EDVHGRQWKHQXPEHURIGD\VLQFOXGLQJKDOIGD\VZLWKQRQPLVVLQJYDOXHV
7KHOLQHDUUHSHDWHGPHDVXUHV$1&29$PRGHOZLOOLQFOXGHWUHDWPHQWWKHQXPEHURIWKH
UHOHYDQWZHHNLQWHUYDOWKHWUHDWPHQWE\ZHHNLQWHUYDOLQWHUDFWLRQDQG,&6XVHDW
6FUHHQLQJDVFDWHJRULFDOFRYDULDWHVDQGEDVHOLQHEORRGHRVLQRSKLOFRXQWEDVHOLQHUHVFXH
9HQWROLQ+)$XVHEDVHOLQH)(9DQGSHUFHQWUHYHUVLELOLW\WR9HQWROLQ+)$DVFRQWLQXRXV
FRYDULDWHV$QXQVWUXFWXUHGFRUUHODWLRQPDWUL[ZLOOEHXVHGWRPRGHODGGLWLRQDO
DXWRFRUUHODWLRQZLWKLQVXEMHFW,IWKLVPRGHOIDLOVWRFRQYHUJHDQ$5VWUXFWXUHZLOOEH
XVHGLQVWHDGIRUWKLVPRGHOVXEMHFWZLOOEHFRQVLGHUHGDUDQGRPHIIHFW&RQWUDVWVZLOOEH
XVHGWRREWDLQHVWLPDWHVRIWKHWUHDWPHQWGLIIHUHQFHVRYHUWKHWUHDWPHQWSHULRG7ZRVLGHGS
YDOXHVDQGSRLQWHVWLPDWHVZLWKWZRVLGHG&,VZLOOEHSURGXFHGIRUHDFKWUHDWPHQW
GLIIHUHQFH
 ([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO(;$&7
7KH(;$&7LVDLWHPSDWLHQWUHSRUWHGRXWFRPH352GDLO\GLDU\ZKLFKZLOOEHXVHGWR
PHDVXUHWKHHIIHFWRIWUHDWPHQWRQH[DFHUEDWLRQVDQGRQWKHVHYHULW\RIUHVSLUDWRU\
V\PSWRPV0HDQFKDQJHIURPEDVHOLQHLQWKHGDLO\(;$&77RWDO6FRUHZLOOEHFDOFXODWHG
RYHUWKHWUHDWPHQWSHULRG7KHODVWGD\VRIWKH6FUHHQLQJ3HULRGZLOOEHXVHGWRFDOFXODWH
WKHEDVHOLQH7KHPHDQFKDQJHIURPEDVHOLQHLQ567RWDO6FRUHZLOOEHDQDO\]HGXVLQJD
VLPLODU50PRGHODVIRU7',WRHVWLPDWHWUHDWPHQWHIIHFWVRYHUWKHWUHDWPHQWSHULRGEXW
XVLQJWKH(;$&7EDVHOLQHPHDQVFRUHLQVWHDGRIWKH%',DVDFRYDULDWH,QVWHDGRIYLVLWWKH
QXPEHURIWKHUHOHYDQWZHHNLQWHUYDOZLOOEHXVHGDVDFDWHJRULFDOFRYDULDWHLQWKH
PRGHO
 6W*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH6*54
5HVSRQGHUDQDO\VHVZLOOEHSHUIRUPHGZKHUHUHVSRQGHUVDUHGHILQHGDVDQLPSURYHPHQWRI
SRLQWVRQDYHUDJHDW:HHNDQGRYHUZHHNV/RJLVWLFUHJUHVVLRQZLOOEHXVHGWR
FRPSDUHWKHWUHDWPHQWJURXSVZLWKEDVHOLQH6*54VFRUHEDVHOLQHEORRGHRVLQRSKLOFRXQW
EDVHOLQHSRVWEURQFKRGLODWRUSHUFHQWSUHGLFWHG)(9DQGSHUFHQWUHYHUVLELOLW\WR9HQWROLQ
+)$DVFRQWLQXRXVFRYDULDWHV7UHDWPHQWDQG,&6XVHDW6FUHHQLQJZLOOEHFDWHJRULFDO
FRYDULDWHV3YDOXHVDQGRGGVUDWLRVZLWK&,VZLOOEHSURGXFHGIRUHDFKWUHDWPHQW
FRPSDULVRQ
 7UDQVLWLRQ'\VSQHD,QGH[
$VVHVVPHQWVRIG\VSQHDZLOOEHREWDLQHGXVLQJWKH%',7',
$WUDQGRPL]DWLRQWKHVHYHULW\RIG\VSQHDDWEDVHOLQHZLOOEHDVVHVVHGXVLQJWKH%',$W
VXEVHTXHQWYLVLWVFKDQJHIURPEDVHOLQHZLOOEHDVVHVVHGXVLQJWKH7',6FRULQJDQG
KDQGOLQJRIPLVVLQJLWHPVZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKWKHXVHU¶VJXLGHIRUWKH7',

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
VFRUH7',ZLOOEHDQDO\]HGXVLQJDQ50OLQHDUPRGHO'DWDIURPDOOVWXG\WUHDWPHQWVZLOO
EHLQFOXGHGLQWKHPRGHOLQJ
7KHOLQHDU50$1&29$PRGHOZLOOLQFOXGHWUHDWPHQWYLVLWDQGWKHWUHDWPHQWE\YLVLW
LQWHUDFWLRQDQG,&6XVHDW6FUHHQLQJDVFDWHJRULFDOFRYDULDWHVDQGEDVHOLQHEORRGHRVLQRSKLO
FRXQW%',EDVHOLQHSRVWEURQFKRGLODWRUSHUFHQWSUHGLFWHG)(9DQGSHUFHQWUHYHUVLELOLW\WR
9HQWROLQ+)$DVFRQWLQXRXVFRYDULDWHV$QXQVWUXFWXUHGFRUUHODWLRQPDWUL[ZLOOEHXVHGWR
PRGHODGGLWLRQDODXWRFRUUHODWLRQZLWKLQVXEMHFW,IWKLVPRGHOIDLOVWRFRQYHUJHDQ$5
VWUXFWXUHZLOOEHXVHGLQVWHDGIRUWKLVPRGHOVXEMHFWZLOOEHFRQVLGHUHGDUDQGRPHIIHFW
&RQWUDVWVZLOOEHXVHGWRREWDLQHVWLPDWHVRIWKHWUHDWPHQWGLIIHUHQFHVRYHUZHHNV7ZR
VLGHGSYDOXHVDQGSRLQWHVWLPDWHVZLWKWZRVLGHG&,VZLOOEHSURGXFHGIRUHDFK
WUHDWPHQWGLIIHUHQFH
 2WKHU(IILFDF\$QDO\VLV
 5DWHRI&23'([DFHUEDWLRQV
7KHUDWHRI&23'H[DFHUEDWLRQVRIDQ\VHYHULW\PRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQV
VHYHUH&23'H[DFHUEDWLRQV&23'H[DFHUEDWLRQVWUHDWHGZLWKV\VWHPLFVWHURLGVDQG&23'
H[DFHUEDWLRQVWUHDWHGZLWKDQWLELRWLFVZLOOEHDQDO\]HGZLWKQHJDWLYHELQRPLDOUHJUHVVLRQ
7KHUDWLRRIWKHUDWHVRI&23'H[DFHUEDWLRQVZLOOEHDQDO\]HGXVLQJQHJDWLYHELQRPLDO
UHJUHVVLRQ&23'H[DFHUEDWLRQVZLOOEHFRQVLGHUHGVHSDUDWHHYHQWVLIPRUHWKDQGD\VDUH
EHWZHHQWKHUHFRUGHGVWRSGDWHRIWKHHDUOLHUHYHQWDQGVWDUWGDWHRIWKHODWHUHYHQW7LPHDW
ULVNRIH[SHULHQFLQJDQH[DFHUEDWLRQZLOOEHXVHGDVDQRIIVHWYDULDEOHLQWKHPRGHO7LPH
GXULQJDQH[DFHUEDWLRQRULQWKHGD\VIROORZLQJDQH[DFHUEDWLRQZLOOQRWEHLQFOXGHGLQWKH
FDOFXODWLRQRIH[SRVXUH7UHDWPHQWVZLOOEHFRPSDUHGDGMXVWLQJIRUEDVHOLQHSRVW
EURQFKRGLODWRUSHUFHQWSUHGLFWHG)(9EDVHOLQH&23'H[DFHUEDWLRQKLVWRU\EDVHOLQHEORRG
(26FRXQWDQG,&6XVHDW6FUHHQLQJ
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKH[DFHUEDWLRQVLQHDFKWUHDWPHQWJURXSZLOOEH
WDEXODWHG
7KHDQDO\VLVZLOOEHFRQGXFWHGIRUWKHHIILFDF\HVWLPDQGXVLQJWKHP,773RSXODWLRQZKHUH
RQO\GDWDREWDLQHGSULRUWRVXEMHFWVGLVFRQWLQXLQJIURPUDQGRPL]HGWUHDWPHQWZLOOEHXWLOL]HG
7KLVSRSXODWLRQZLOOSURYLGHDQHVWLPDWHRIWKHHIILFDF\RIWKHWUHDWPHQWVGXULQJWUHDWPHQWLQ
WKHUDQGRPL]HGSRSXODWLRQ

'XUDWLRQRI&23'([DFHUEDWLRQ
7KHGXUDWLRQRI&23'H[DFHUEDWLRQGHILQLWLRQLVORFDWHGLQ6HFWLRQ
,QRUGHUWRQRWGRXEOHFRXQWH[DFHUEDWLRQVWKDWDUHPRGHUDWHRUVHYHUHH'LDU\GDWDIURP
GDWHVZLWKLQGD\VRIDPRGHUDWHRUVHYHUHH[DFHUEDWLRQZLOOQRWEHLQFOXGHGDVDGGLWLRQDO
PLOG&23'H[DFHUEDWLRQV7KLVLPSOLHVWKDWFRQWLQXLQJZRUVHQHGV\PSWRPVWKDWPHHWWKH
GHILQLWLRQRIDPLOGH[DFHUEDWLRQZRXOGQHHGWREHSUHVHQWDWOHDVWGD\VSULRUWRWKHGD\
SHULRGLPPHGLDWHO\SUHFHGLQJWKHVWDUWGDWHRIDPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQLQ
RUGHUWREHFRQVLGHUHGDVHSDUDWHHYHQW6LPLODUO\ZRUVHQHGV\PSWRPVZRXOGQHHGWREH
SUHVHQWIRUDWOHDVWGD\VDIWHUWKHGD\SHULRGLPPHGLDWHO\IROORZLQJDPRGHUDWHRUVHYHUH
&23'H[DFHUEDWLRQWREHFRQVLGHUHGDVHSDUDWHHYHQW
$QDO\VHVRIHDFKVHYHULW\RIH[DFHUEDWLRQZLOODFFRXQWIRUWKHWLPHWKDWVXEMHFWVDUHDWULVNRI
KDYLQJDQH[DFHUEDWLRQRIWKDWVHYHULW\RUJUHDWHU7LPHGXULQJRULPPHGLDWHO\IROORZLQJDQ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
H[DFHUEDWLRQZLOOQRWEHFRQVLGHUHGDVSDUWRIWKHWLPHWKDWWKHVXEMHFWZDVDWULVN+RZHYHU
WLPHGXULQJRULPPHGLDWHO\IROORZLQJDQH[DFHUEDWLRQRIORZHUVHYHULW\ZLOOEHLQFOXGHG
VLQFHIRUH[DPSOHDVXEMHFWH[SHULHQFLQJDPLOGH[DFHUEDWLRQLVVWLOODWULVNRIWKHHYHQW
LQFUHDVLQJLQVHYHULW\DQGEHFRPLQJDPRGHUDWHH[DFHUEDWLRQ
 6SLURPHWU\3DUDPHWHUV&KDQJHIURP%DVHOLQHLQ0RUQLQJ3UH'RVH7URXJK
9DOXHV
&KDQJHIURPEDVHOLQHLQPRUQLQJSUHGRVHWURXJK)(9IRUFHGYLWDOFDSDFLW\)9&SHDN
H[SLUDWRU\IORZUDWH3()5DQGIRUFHGH[SLUDWRU\IORZEHWZHHQDQGRI)9&
)()RYHUDQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLWZLOOEH
HYDOXDWHGE\WUHDWPHQW0RGHOVVLPLODUWRWKHRQHEXLOWIRUWKHSULPDU\DQDO\VLVRI)(9ZLOO
EHXVHG7ZRVLGHGSYDOXHVDQGSRLQWHVWLPDWHVZLWKWZRVLGHGFRQILGHQFHLQWHUYDOV
ZLOOEHSURGXFHGIRUHDFKWUHDWPHQWGLIIHUHQFH7KHSDUDPHWHUVSHFLILFEDVHOLQHFRYDULDWH
ZLOOEHXVHG
 7LPHWR(YHQW$QDO\VHV
$OORIWKHIROORZLQJYDULDEOHVZLOOEHDQDO\]HGLQDPDQQHUVLPLODUWRWKHWLPHWRILUVW
PRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQDVGHILQHGXQGHUVHFRQGDU\HIILFDF\DQDO\VLV
6HFWLRQ
x 7LPHWRILUVW&23'H[DFHUEDWLRQRIDQ\VHYHULW\
x 7LPHWRILUVWVHYHUH&23'H[DFHUEDWLRQ
x 7LPHWRILUVW&23'H[DFHUEDWLRQWUHDWHGZLWKV\VWHPLFVWHURLGV
x 7LPHWRILUVW&23'H[DFHUEDWLRQWUHDWHGZLWKDQWLELRWLFV
x 7LPHWRWUHDWPHQWIDLOXUH
x 7LPHWR&,'
x 7LPHWR6XVWDLQHG&,'
x 7LPHWRGHDWKDOOFDXVHVUHVSLUDWRU\
7UHDWPHQWIDLOXUHLVGHILQHGDVDPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQRUGLVFRQWLQXDWLRQ
IURPWUHDWPHQWIRUDQ\UHDVRQRUGHDWK6XEMHFWVZKRGRQRWH[SHULHQFHDWUHDWPHQWIDLOXUH
ZLOOEHFHQVRUHGDWWKHLUGDWHRIGLVFRQWLQXDWLRQRU'D\ZKLFKHYHUFRPHVILUVW

7LPHWRILUVWVXVWDLQHG&,'ZKLFKLVDQ³RWKHUHQGSRLQW´ZLOOEHDQDO\]HGLQDPDQQHU
VLPLODUWRWLPHWRILUVW&,'
$VXVWDLQHG&,'LVGHILQHGDVIROORZV
x WKHVDPHFRPSRQHQWRI&,'RFFXUVLQWZRRUPRUHFRQVHFXWLYHYLVLWVDWOHDVWZHHNV
DSDUW
x RUPRUHRIWKHVXEVHTXHQWVFKHGXOHGYLVLWVDUHFDWHJRUL]HGDVEHLQJD&,'
x $QRFFXUUHQFHRIDPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQZLOOEHFDWHJRUL]HGDVD
VXVWDLQHG&,'

)RUWLPHWRGHDWKDOOFDXVHVVXEMHFWVZLOOEHFHQVRUHGDWWKHGDWHRIODVWFRQWDFW$&R[
UHJUHVVLRQPRGHOZLOOEHXVHGWRFRPSDUHWKHWUHDWPHQWVDGMXVWHGIRUEDVHOLQHSHUFHQW
SUHGLFWHGSRVWEURQFKRGLODWRU)(9DQGEDVHOLQHDJHDVFRYDULDWHV)RUWKLVHQGSRLQW
DQDO\VHVZLOOEHFRQGXFWHGIRUWKHWUHDWPHQWSROLF\HVWLPDQGLQWKH,77SRSXODWLRQ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
'DWDSHUPLWWLQJWKHVHDQDO\VHVZLOOEHUHSHDWHGIRUWLPHWRGHDWKIURPUHVSLUDWRU\FDXVHV
7KH6SRQVRUDQGWKH&OLQLFDO(QGSRLQW&RPPLWWHHZLOODJUHHRQVHDUFKWHUPVEDVHGRQWKH
SUHYDLOLQJYHUVLRQRIWKH0HG'5$GLFWLRQDU\WRLGHQWLI\PRUWDOLWLHVGXHWRSRVVLEOH
UHVSLUDWRU\FDXVHV2QO\WKRVHGHDWKVLGHQWLILHGDVEHLQJGXHWRUHVSLUDWRU\FDXVHVE\WKH
&OLQLFDO(QGSRLQW&RPPLWWHHZLOOEHFRQVLGHUHGDVHYHQWVIRUWKLVDQDO\VLV
7KHDQDO\VLVRIWLPHWRGHDWKZLOOEHFRQGXFWHGFRQWLQJHQWXSRQKDYLQJDWOHDVWHYHQWVRI
GHDWK2WKHUZLVHWKHDQDO\VLVZLOOEHOLPLWHGWRFRXQWVDQGOLVWLQJV
 ([DFHUEDWLRQVRI&KURQLF3XOPRQDU\'LVHDVH7RRO(;$&7
,QDGGLWLRQWRWKH(;$&7VHFRQGDU\DQDO\VHVWKH50$1&29$PRGHOZLOOEHXVHGWR
HYDOXDWHWKHGLIIHUHQFHEHWZHHQWUHDWPHQWVLQPHDQFKDQJHIURPEDVHOLQHLQWKHGDLO\
(;$&77RWDO6FRUH7KH567RWDO6FRUHDVZHOODVWKHV\PSWRPGRPDLQVFRUHV
EUHDWKOHVVQHVVFRXJKDQGVSXWXPDQGFKHVWV\PSWRPVZLOOEHHYDOXDWHGRYHUDQG
ZHHNVDQGRYHUHDFKZHHNLQWHUYDORIWKH7UHDWPHQW3HULRG
 5HVFXH9HQWROLQ+)$8VDJH
,QDGGLWLRQWRWKHVHFRQGDU\DQDO\VHVIRUUHVFXHPHGLFDWLRQXVDJHWKH50$1&29$PRGHO
ZLOOEHXVHGWRHYDOXDWHWKHWUHDWPHQWGLIIHUHQFHRYHUDQGZHHNVDQGIRUHDFK
ZHHNLQWHUYDORIWKH7UHDWPHQW3HULRG'D\WLPHUHVFXH9HQWROLQ+)$XVHDQGQLJKWWLPH
UHVFXHPHGLFDWLRQXVHZLOOEHHYDOXDWHGDQGVXPPDUL]HGLQDVLPLODUIDVKLRQ7ZRVLGHGS
YDOXHVDQGSRLQWHVWLPDWHVZLWKVLGHG&,VZLOOEHSURGXFHGIRUHDFKWUHDWPHQW
GLIIHUHQFH
7KHSHUFHQWDJHRIGD\VZLWKµQRUHVFXH9HQWROLQ+)$XVH¶RYHUDQGZHHNVDQG
IRUHDFKZHHNLQWHUYDORIWKH7UHDWPHQW3HULRGZLOOEHHYDOXDWHGZLWKDQ$129$PRGHO.
$µGD\ZLWKQRUHVFXHXVH¶LVGHILQHGDVDQ\GD\ZKHUHWKHVXEMHFWUHSRUWHG]HURSXIIVRI
UHVFXH9HQWROLQ+)$7KHUHVFXH9HQWROLQ+)$XVDJHGLDU\GDWDIURPGD\VZKHUHUHVFXH
9HQWROLQ+)$XVDJHGDWDLVQRQPLVVLQJZLOOEHXVHGWRDVFHUWDLQWKHGD\VZLWK³QRUHVFXH
9HQWROLQ+)$XVH´7KH$1&29$PRGHOZLOOHYDOXDWHWUHDWPHQWGLIIHUHQFHVDQGLQFOXGH
EDVHOLQHUHVFXH9HQWROLQ+)$XVHDQGUHYHUVLELOLW\WR9HQWROLQ+)$DVFRQWLQXRXVFRYDULDWHV
DQGUHJLRQVPRNLQJVWDWXVDWEDVHOLQHDQG,&6XVHDW6FUHHQLQJDVFDWHJRULFDOFRYDULDWHV
 7UDQVLWLRQ'\VSQHD,QGH[
,QDGGLWLRQWRWKH7',VHFRQGDU\DQDO\VHVWKH50$1&29$PRGHOZLOOEHXVHGWRHYDOXDWH
WKHGLIIHUHQFHEHWZHHQWUHDWPHQWVRYHUDQGZHHNVDQGDWHDFKRIWKHLQGLYLGXDO
YLVLWV6LPLODUDQDO\VHVZLOOEHSHUIRUPHGIRUWKHLQGLYLGXDOFRPSRQHQWVRIWKH7',
IXQFWLRQDOLPSDLUPHQWPDJQLWXGHRIWDVNDQGPDJQLWXGHRIHIIRUWRYHUDQG
ZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQYLVLW
5HVSRQGHUDQDO\VHVZLOOEHSHUIRUPHGIRU7',IRFDOVFRUHZKHUHUHVSRQGHUVDUHGHILQHGDVD
UHVSRQVHRIXQLWRUPRUHRQDYHUDJHRYHUDQGZHHNV/RJLVWLFUHJUHVVLRQZLOO
EHXVHGWRFRPSDUHWKHWUHDWPHQWJURXSVZLWK%',DQGEDVHOLQHEORRGHRVLQRSKLOFRXQWDQG
SHUFHQWUHYHUVLELOLW\WR9HQWROLQ+)$DVFRQWLQXRXVFRYDULDWHVDQGWUHDWPHQWDQG,&6XVHDW
6FUHHQLQJDVDFDWHJRULFDOFRYDULDWH3YDOXHVDQGRGGVUDWLRVZLWK&,VZLOOEHSURGXFHG
IRUHDFKWUHDWPHQWFRPSDULVRQ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 6W*HRUJH¶V5HVSLUDWRU\4XHVWLRQQDLUH6*54
7KHGLIIHUHQFHEHWZHHQWUHDWPHQWJURXSVLQWKHFKDQJHIURPEDVHOLQHLQ6*54RYHU
DQGZHHNVRIWUHDWPHQWDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLWZLOOEHHYDOXDWHG
XVLQJDVLPLODU50DSSURDFKDVIRU7',EXWXVLQJEDVHOLQH6*54VFRUHLQVWHDGRIWKH%',
6FRULQJDQGKDQGOLQJRIPLVVLQJLWHPVZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKWKHXVHU¶VJXLGH
IRUWKH6*54(DFKUHVSRQVHLVWREHJLYHQDXQLTXHHPSLULFDOO\GHULYHGZHLJKWEHWZHHQ
DQGWKHZHLJKWVRIDOOUHVSRQVHVDUHWKHQVXPPHGDQGGLYLGHGE\WKHPD[LPXPSRVVLEOH
VFRUHDQGH[SUHVVHGDVDSHUFHQWDJH0LVVLQJ6*54WRWDOVFRUHVZLOOQRWEHLPSXWHG7ZR
VLGHGSYDOXHVDQGSRLQWHVWLPDWHVZLWKVLGHG&,VZLOOEHSURGXFHGIRUHDFKWUHDWPHQW
GLIIHUHQFH
7KHGLIIHUHQFHEHWZHHQWUHDWPHQWVDWHDFKRIWKHLQGLYLGXDOYLVLWVZLOODOVREHHYDOXDWHGDQG
VXPPDUL]HG,QGLYLGXDOGRPDLQVRIWKH6*54ZLOODOVREHDQDO\]HGLQDVLPLODUIDVKLRQDV
WKHRYHUDOOVFRUH
7KHSHUFHQWDJHRIVXEMHFWVDFKLHYLQJDQ0&,'RIXQLWVRUPRUHRQDYHUDJHLQ6*54WRWDO
VFRUHRYHUDQGZHHNVDQGDWHDFKSRVWUDQGRPL]DWLRQLQFOLQLFYLVLWZLOOEH
HYDOXDWHGZLWKDPRGHOVLPLODUWRWKHRQHXVHGRQWKHVHFRQGDU\DQDO\VLVRI6*54
UHVSRQGHUV
 (XUR4R/('''LPHQVLRQV4XHVWLRQQDLUH(4'/
'DWDIURPWKH(4'/ZLOOEHDQDO\]HG
7KHGDWDZLOOEHZHLJKWHGWRFDOFXODWHDQLQGH[VFRUHEDVHGXSRQVXEMHFWV¶UHVSRQVHVWRWKH
GLPHQVLRQV7KHYLVXDODQDORJXHVFDOH9$6ZLOOEHVFRUHGIURPZRUVWLPDJLQDEOHKHDOWK
VWDWHWKURXJKEHVWLPDJLQDEOHKHDOWKVWDWHWRUHSUHVHQWWKHVXEMHFW¶VVHOIUHSRUW
FRQFHUQLQJKRZEDGRUKRZJRRGWKHLUKHDOWKZDVGXULQJWKDWGD\
(4'ZLOOEHSUHVHQWHGLQWKUHHGLIIHUHQWZD\V
3UHVHQWLQJUHVXOWVIURPWKH(4'/GHVFULSWLYHV\VWHPDVDKHDOWKSURILOHDWEDVHOLQHDW
DOOYLVLWVDQGDW(R7QE\GRPDLQ
3UHVHQWLQJUHVXOWVRIWKH9$6DVDPHDVXUHRIRYHUDOOVHOIUDWHGKHDOWKVWDWXVEDVHOLQH
VFRUHVVFRUHVDWHDFKYLVLWFKDQJHVIURPEDVHOLQHDWHDFKYLVLWDQGPHDQ9$6VFRUHRYHUWKH
WUHDWPHQWSHULRG
3UHVHQWLQJUHVXOWVIURPWKH(4'/LQGH[VFRUHXVLQJ8.YDOXHVHWDWEDVHOLQHHDFK
YLVLWFKDQJHVIURPEDVHOLQHWRHDFKYLVLWDQGWKHPHDQLQGH[VFRUHRYHUWKHWUHDWPHQWSHULRG

)XUWKHUGHWDLOVPD\EHIRXQGLQWKH6$3
 7\SH,(UURU&RQWURO
7KHVDPHJHQHUDO7\SH,HUURUFRQWUROVWUDWHJ\ZLOOEHHPSOR\HGIRUWKH86DQG([86
UHJXODWRU\DSSURDFKHV,QHDFKDSSURDFK7\SH,HUURUZLOOEHFRQWUROOHGIRUWKHIROORZLQJ
DQDO\VHV
x 7KHSULPDU\DQDO\VHVIRUWKHHIILFDF\HVWLPDQG
x 7KHVHFRQGDU\DQDO\VLVRIWKHSULPDU\HQGSRLQWIRUWKHDWWULEXWDEOHHVWLPDQG

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
x 7KHVHFRQGDU\DQDO\VHV
x $VXEJURXSDQDO\VLVRISDWLHQWVZLWKRUPRUHPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQV
LQWKHSUHYLRXVPRQWKV
 86$SSURDFK
7KH7\SH,HUURUUDWHZLOOEHFRQWUROOHGZLWKLQWKHSULPDU\VHFRQGDU\DQGVXEJURXSHIILFDF\
DQDO\VHV7KHSULPDU\DQDO\VHVDVVRFLDWHGZLWK%))0',ZLOOSURFHHGRQO\LIWKH
SULPDU\DQDO\VLVDVVRFLDWHGZLWK%))0',LVVXFFHVVIXO7KHDQDO\VLVRIWKHSULPDU\
HQGSRLQWIRUWKHDWWULEXWDEOHHVWLPDQGVHFRQGDU\DQDO\VHVDQGVXEJURXSDQDO\VLVIRUHDFK
%))0',GRVHZLOOSURFHHGRQO\LIWKHSULPDU\DQDO\VLVDVVRFLDWHGZLWKWKDWGRVHRI%))
0',LVVXFFHVVIXO
)RUHDVHRIUHYLHZWKHVHWRISODQQHGDQDO\VHVKDVEHHQGLYLGHGLQWRWZRJURXSV
*URXS7KHSULPDU\DQDO\VHVIRUWKHHIILFDF\HVWLPDQGDQGWKHDQDO\VLVRIWKHSULPDU\
HQGSRLQWVIRUWKHDWWULEXWDEOHHVWLPDQG
*URXS7KHVHFRQGDU\DQGVXEJURXSDQDO\VHVIRUWKHHIILFDF\HVWLPDQG


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
)LJXUH
*URXS7\SH,(UURU&RQWUROIRUWKH$QDO\VHVRIWKH3ULPDU\(QGSRLQWV86
$SSURDFK

,Q*URXSDVHTXHQWLDOPXOWLSOLFLW\DSSURDFKZLOOEHXVHGLQWKHDQDO\VHVRIWKHSULPDU\
HQGSRLQW)LJXUH,QWKLVDSSURDFKWKHDQDO\VHVRIWKHSULPDU\HQGSRLQWDUHOLVWHGLQD
SUHVSHFLILHGRUGHULQZKLFKWKH\ZLOOEHWHVWHG(DFKK\SRWKHVLVZLOOEHWHVWHGDWWKHVLGHG
OHYHO,IDSYDOXHLVOHVVWKDQWKHQWKDWK\SRWKHVLVLVUHMHFWHGDQGWKHQH[W
K\SRWKHVLVLVWHVWHG,IWKHSULPDU\K\SRWKHVLVLVQRWUHMHFWHGWKHQWHVWLQJZLOOVWRS+RZHYHU
LWLVQRWHGWKDWSYDOXHVZLOOVWLOOEHFDOFXODWHGIRUDOOVXEVHTXHQWDQDO\VHVIRUGHVFULSWLYH
SXUSRVHV
*URXSDQDO\VHVDUHSUHVHQWHGLQ)LJXUH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
)LJXUH
*URXS7KH$QDO\VLVRIWKH6HFRQGDU\(QGSRLQWV86$SSURDFK

,Q*URXSWKHVHFRQGDU\DQDO\VHVDQGWKHVXEJURXSDQDO\VLVZLOOEHWUHDWHGDVVHSDUDWH
IDPLOLHVRIK\SRWKHVHV7KH7\SH,HUURULQHDFKIDPLO\RIVHFRQGDU\DQDO\VHVZLOOEH
FRQWUROOHGWRDOSKD
 ([86$SSURDFK
7KH([86DSSURDFKZLOOIROORZDVLPLODUJHQHUDOVWUDWHJ\DVWKH86DSSURDFK7KHFRQWURO
RI7\SH,HUURULQWKH([86DSSURDFKGLIIHUVIURPWKH86DSSURDFKLQWKHQXPEHURI
VHFRQGDU\HQGSRLQWVEHLQJHYDOXDWHG2WKHUZLVHWKH7\SH,HUURUFRQWUROVWUDWHJ\LVVLPLODU
7KHJUDSKLFDOUHSUHVHQWDWLRQVRIWKHSULPDU\VHFRQGDU\DQGVXEJURXSDQDO\VHVDUHSUHVHQWHG
LQ)LJXUH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
)LJXUH
*URXS7\SH,(UURU&RQWUROIRUWKH$QDO\VHVRIWKH3ULPDU\(QGSRLQWV([86
$SSURDFK

,IWKH*URXSDQDO\VHVDUHVXFFHVVIXOZLWKLQD%))0',GRVHWKHDQDO\VLVRIWKHVHFRQGDU\
HQGSRLQWVIRUWKDW%))0',GRVH*URXSZLOOSURFHHGIRUWKHHIILFDF\HVWLPDQG
*URXSDQDO\VHVDUHSUHVHQWHGLQ)LJXUH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
)LJXUH
*URXS7KH$QDO\VLVRIWKH6HFRQGDU\(QGSRLQWV([86$SSURDFK


6DIHW\$QDO\VLV
 $GYHUVH(YHQWV
$GYHUVHHYHQWVGXULQJHDFKWUHDWPHQWSHULRGZLOOEHVXPPDUL]HGE\WKHQXPEHURIVXEMHFWV
H[SHULHQFLQJDQHYHQW7KH\ZLOOEHWDEXODWHGDWWKHOHYHORIWKH0HGLFDO'LFWLRQDU\IRU
5HJXODWRU\$FWLYLWLHV0HG'5$SUHIHUUHGWHUPDQGWKH0HG'5$V\VWHPRUJDQFODVV7KH
YHUVLRQRI0HG'5$FXUUHQWDWWKHWLPHWKHILUVWVXEMHFWLVUDQGRPL]HGZLOOEHXVHG
WKURXJKRXWWKHVWXG\7DEXODWLRQVZLOOEHEURNHQGRZQE\VHYHULW\VHULRXVQHVV$(VOHDGLQJ
WRGLVFRQWLQXDWLRQDQGUHODWLRQVKLSWRVWXG\GUXJ1RK\SRWKHVLVWHVWVZLOOEHSHUIRUPHG
 3DUDGR[LFDO%URQFKRVSDVP
3DUDGR[LFDOEURQFKRVSDVPZLOOEHFRQVLGHUHGDQ$(RIVSHFLDOLQWHUHVWDQGZLOOEHWDEXODWHG
VHSDUDWHO\
 &OLQLFDO/DERUDWRU\0HDVXUHPHQWV
6XPPDU\VWDWLVWLFVPHDQPHGLDQVWDQGDUGGHYLDWLRQ>6'@DQGUDQJHRIFKDQJHIURP
EDVHOLQHYDOXHVZLOOEHWDEXODWHGIRUHDFKWUHDWPHQWDQGHDFKDVVHVVPHQWWLPH)RUFOLQLFDO
ODERUDWRU\PHDVXUHPHQWVEDVHOLQHZLOOEHGHILQHGDVWKHODVWDYDLODEOHYDOXHSULRUWR
UDQGRPL]DWLRQ3RWHQWLDOO\FOLQLFDOO\VLJQLILFDQWYDOXHVZLOOEHLGHQWLILHGDQGVXPPDUL]HG
 9LWDO6LJQV
6XPPDU\VWDWLVWLFVPHDQPHGLDQ6'DQGUDQJHRIFKDQJHIURPEDVHOLQHZLOOEHWDEXODWHG
E\YLWDOVLJQSDUDPHWHUDQGWUHDWPHQWIRUHDFKVFKHGXOHGDVVHVVPHQWWLPH)RUYLWDOVLJQV
EDVHOLQHZLOOEHGHILQHGDVWKHDYHUDJHRIWKHYDOXHVSULRUWRGRVLQJRQWKHGD\RI
UDQGRPL]DWLRQ,QDGGLWLRQSRWHQWLDOO\FOLQLFDOO\VLJQLILFDQWYDOXHVZLOOEHLGHQWLILHGDQG
VXPPDUL]HG

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 (&*V
6XPPDU\VWDWLVWLFVPHDQPHGLDQ6'DQGUDQJHIRUDEVROXWHYDOXHVDQGFKDQJHIURP
EDVHOLQHZLOOEHWDEXODWHGE\(&*SDUDPHWHUDQGWUHDWPHQWIRUHDFKVFKHGXOHGDVVHVVPHQW
WLPH)RU(&*SDUDPHWHUVEDVHOLQHYDOXHVZLOOEHGHILQHGDVWKHDYHUDJHRIWKHSUHGRVH
PHDVXUHPHQWVWDNHQSULRUWRWKHVWDUWRIWUHDWPHQWDWWKHUDQGRPL]DWLRQYLVLW9LVLW,Q
DGGLWLRQSRWHQWLDOO\FOLQLFDOO\VLJQLILFDQWYDOXHVZLOOEHLGHQWLILHGDQGVXPPDUL]HG

+&58$QDO\VHV
+&58HQGSRLQWVZLOOEHGHVFULSWLYHO\VXPPDUL]HGE\WUHDWPHQWJURXS$GGLWLRQDODQDO\VHV
PD\EHSHUIRUPHGZKLFKZLOOEHVSHFLILHGLQWKH6$3

5DQGRPL]DWLRQ
6XEMHFWVZLOOEHUDQGRPL]HGLQDVFKHPH$SSUR[LPDWHO\VXEMHFWVHDFKZLOOEH
UDQGRPL]HGWRWKH%))0',J%))0',JDQG))0',JWUHDWPHQW
JURXSV5DQGRPL]DWLRQZLOOEHVWUDWLILHGE\H[DFHUEDWLRQKLVWRU\RUPRGHUDWHRU
VHYHUHH[DFHUEDWLRQVSRVWEURQFKRGLODWRU)(9WRSUHGLFWHGRUWR
SUHGLFWHGEORRGHRVLQRSKLOFRXQWFHOOVSHUPPRUFHOOVSHUPPDQG
FRXQWU\(QUROOPHQWZLOOEHWDUJHWHGWRDFKLHYHDUDWLRIRUWKHEORRGHRVLQRSKLOVWUDWDZLWK
WZLFHDVPDQ\UDQGRPL]HGVXEMHFWVLQWKHFHOOVSHUPPFDWHJRU\

([SHULPHQWDO'HVLJQ
7KLVVWXG\LVDPXOWLFHQWHUGRXEOHEOLQGSDUDOOHOJURXSDFWLYHFRQWUROOHGGHVLJQ

6DPSOH6L]H&RQVLGHUDWLRQ
)RUPRUQLQJSUHGRVHWURXJK)(9WKHH[SHFWHGVWDQGDUGGHYLDWLRQ6'IRUWKHFKDQJH
IURPEDVHOLQHDWHDFKYLVLWLVP/7KHH[SHFWHG6'RYHUZHHNVLVP/7KLV
DVVXPHVDFRUUHODWLRQRIRYHUWKHVL[SRVWUDQGRPL]DWLRQYLVLWVWR:HHN
)RUWKHDQDO\VLVRIPRUQLQJSUHGRVHWURXJK)(9DW:HHNWKH86$SSURDFKWKH
SURSRVHGVDPSOHVL]HRIVXEMHFWVSHUDUPLQWKH%))0',DQG))0',JURXSV
ZLWKGURSRXWZLOOSURYLGHDSSUR[LPDWHO\SRZHUWRGHWHFWDGLIIHUHQFHRIP/
EHWZHHQ%))0',DQG))0',7KH7\SH,HUURUZLOOEHFRQWUROOHGDWDWZRVLGHGDOSKD
OHYHORI
)RUWKHDQDO\VLVRIPRUQLQJSUHGRVHWURXJK)(9RYHUZHHNVWKHH[86$SSURDFK
ZLWKGURSRXWWKHVDPHSURSRVHGVDPSOHVL]HZLOOSURYLGHDSSUR[LPDWHO\SRZHUWR
GHWHFWDGLIIHUHQFHRIP/EHWZHHQ%))0',DQG))0',7KH7\SH,HUURUZLOOEH
FRQWUROOHGDWDWZRVLGHGDOSKDOHYHORI
%DVHGRQDUHYLHZRIWKHOLWHUDWXUHDQGGDWDIURPDUHFHQW&23'H[DFHUEDWLRQVWXG\RID
EXGHVRQLGHDQGIRUPRWHUROIXPDUDWHFRPELQDWLRQWKHUDS\WKHSHUFHQWDJHRISDWLHQWVZLWKDW
OHDVWRQHPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQLQWKH%))0',ȝJDQG))0',
ȝJJURXSVLVHVWLPDWHGWREHDQGUHVSHFWLYHO\7KLVUHSUHVHQWVDKD]DUG
UDWLR+5RIDSSUR[LPDWHO\IRU%))0',FRPSDUHGWR))0',7KHSURMHFWHGQXPEHUV
RISDWLHQWVZLWKDWOHDVWRQHPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQLQWKLVYDULDEOHOHQJWK

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
VWXG\DUHDQGUHVSHFWLYHO\IRUWKH%))0',ȝJDQG))0',ȝJJURXSV
7KLVZRXOGSURYLGHSRZHUWRGHWHFWDQ+5RIRUORZHU7KHSUREDELOLW\RI
GHWHFWLQJDQXPHULFDOWUHQGLQWKHDQDO\VLVRIWLPHWRILUVWPRGHUDWHRUVHYHUH&23'
H[DFHUEDWLRQLVHVWLPDWHGWREHZKHUHQXPHULFDOWUHQGLVGHILQHGDVWKHREVHUYHG+5
EHWZHHQD%))0',GRVHDQG))0',EHLQJEHORZ,IWKHFULWHULRQIRUQXPHULFDOWUHQG
LVUDLVHGWRWKHSUREDELOLW\RIGHWHFWLQJDQXPHULFDOWUHQGLVHVWLPDWHGWREH

'DWD9DOLGDWLRQDQG7UDQVIRUPDWLRQ
,QJHQHUDOWKHGLVWULEXWLRQRIVSLURPHWU\PHDVXUHVLVZHOODSSUR[LPDWHGE\DQRUPDO
GLVWULEXWLRQ8QGHUVRPHFLUFXPVWDQFHVKRZHYHUIRUH[DPSOHGXULQJD&23'
H[DFHUEDWLRQXQUHODWHGWRWUHDWPHQWH[WUHPHDQGDW\SLFDOYDOXHVFDQDULVH6XFKYDOXHV
KDYHKLJKLQIOXHQFHRQHVWLPDWLRQRIYDULDQFHSDUDPHWHUVDQGRQVWDQGDUGHUURUVRIIL[HG
HIIHFWHVWLPDWHV7KHGLVWULEXWLRQRIUHVLGXDOVDQGLQIOXHQFHVWDWLVWLFVZLOOEHH[DPLQHGWR
LGHQWLI\VXFKFDVHV,QWKHHYHQWWKDWDVLQJOHRUVPDOOQXPEHURIVXFKRXWO\LQJYDOXHVDUH
IRXQGWRH[LVWDQGIRXQGWREHKLJKO\LQIOXHQWLDOWKHHIIHFWVPD\EHDPHOLRUDWHGE\HLWKHU
WUDQVIRUPDWLRQRUUHPRYDORIWKHRXWOLHU7UDQVIRUPDWLRQVWREHFRQVLGHUHGPD\LQFOXGHWKH
ORJDULWKPLFWUDQVIRUPDWLRQRUQRUPDOUDQNWUDQVIRUPDWLRQV:KHUHRXWOLHUVDUHUHPRYHG
VHQVLWLYLW\DQDO\VHVLQFOXGLQJWKRVHYDOXHVZLOOEHUHSRUWHG
&KDQJHVLQVSLURPHWU\PHDVXUHVIURPEDVHOLQHDQGIURPWLPHSRLQWWRWLPHSRLQWZLOOEH
H[DPLQHGJUDSKLFDOO\EHIRUHGDWDEDVHORFNDQGEHIRUHXQEOLQGLQJDVSDUWRIGDWDTXDOLW\
PDQDJHPHQW7KLVZLOOLQFOXGHSURGXFWLRQRIQRUPDOSUREDELOLW\SORWVNHUQHOGHQVLW\
HVWLPDWHVDQGQRUPDORUGHURXWOLHUVWDWLVWLFV
 $QDO\VLV3ODQ
$OODQDO\VHVZLOOEHVSHFLILHGLQDGHWDLOHG6WDWLVWLFDO$QDO\VLV3ODQ6$3WKDWZLOOLQFOXGH
WDEOHDQGGDWDOLVWLQJVKHOOVZLWKPRFNJUDSKLFDOUHSUHVHQWDWLRQV7KH6$3ZLOOEHVLJQHG
EHIRUHGDWDEDVHORFNDQGXQEOLQGLQJ
 $QDO\VLV3RSXODWLRQVDQG(VWLPDQGV

$QDO\VLV3RSXODWLRQV
7KHIROORZLQJDQDO\VLVSRSXODWLRQVDUHGHILQHGLQWKLVVWXG\
 7KH,QWHQW7R7UHDW,773RSXODWLRQLVGHILQHGDVDOOVXEMHFWVZKRDUHUDQGRPL]HGWR
WUHDWPHQWDQGUHFHLYHDQ\DPRXQWRIWKHVWXG\WUHDWPHQW6XEMHFWVZLOOEHDQDO\]HG
DFFRUGLQJWRWKHWUHDWPHQWWKH\ZHUHDVVLJQHGDWUDQGRPL]DWLRQ'DWDREWDLQHGDIWHU
GLVFRQWLQXDWLRQRIWUHDWPHQWEXWSULRUWRZLWKGUDZDOIURPWKHVWXG\ZLOOEHLQFOXGHG
 7KH0RGLILHG,QWHQWWR7UHDWP,773RSXODWLRQLVDVXEVHWRIWKH,773RSXODWLRQ
GHILQHGDVDOOVXEMHFWVZLWKSRVWUDQGRPL]DWLRQGDWDREWDLQHGSULRUWRGLVFRQWLQXDWLRQ
IURPWUHDWPHQW$Q\GDWDFROOHFWHGDIWHUFRPSOHWLRQRIRUGLVFRQWLQXDWLRQIURP
UDQGRPL]HGVWXG\PHGLFDWLRQZLOOEHH[FOXGHG6XEMHFWVZLOOEHDQDO\]HGDFFRUGLQJWR
UDQGRPL]HGWUHDWPHQWJURXS1RWHWKDWDVXEMHFWZKRXVHGDVWXG\WUHDWPHQWEXWWRRN
OHVVWKDQRQHIXOOGRVHRIWUHDWPHQWZLOOTXDOLI\IRUWKLVSRSXODWLRQ7KHP,77

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
3RSXODWLRQZLOOEHWKHSULPDU\SRSXODWLRQIRUDOOHIILFDF\DQDO\VHV1RWH7KHNQRZOHGJH
WKDWDVXEMHFWGLGQRWKDYHD&23'H[DFHUEDWLRQFRQVWLWXWHVDQHIILFDF\DVVHVVPHQW
 'LIIHUHQFHVLQUHVFXH9HQWROLQ+)$XVDJHDUHH[SHFWHGDFURVVWKHVWXG\LQFOXGLQJVRPH
VXEMHFWVZKRXVHGYLUWXDOO\QRUHVFXHPHGLFDWLRQDWVWXG\HQWU\,QRUGHUWRUHSUHVHQWWKH
SRSXODWLRQRISDWLHQWVZKRPD\EHQHILWIURPVWXG\WUHDWPHQWDQGUHGXFHWKHLUXVHRI
UHVFXHPHGLFDWLRQWKH5HVFXH9HQWROLQ8VHU5983RSXODWLRQLVGHILQHGDVDOO
VXEMHFWVLQWKH,773RSXODWLRQZLWKPHDQEDVHOLQHUHVFXH9HQWROLQXVHRISXIIGD\
 7KH6DIHW\3RSXODWLRQLVGHILQHGDVDOOVXEMHFWVZKRDUHUDQGRPL]HGWRWUHDWPHQWDQG
UHFHLYHDWOHDVWRQHGRVHRIWKHVWXG\WUHDWPHQW+RZHYHUVXEMHFWVZLOOEHDQDO\]HG
DFFRUGLQJWRWUHDWPHQWUHFHLYHGUDWKHUWKDQUDQGRPL]HG,IDVXEMHFWUHFHLYHGPRUHWKDQ
UDQGRPL]HGWUHDWPHQWWKH\ZLOOEHDQDO\]HGDQGLQFOXGHGLQVXPPDULHVDFFRUGLQJWRWKH
WUHDWPHQWWKH\UHFHLYHGWKHPRVW6XEMHFWVUHFHLYLQJQRVWXG\WUHDWPHQWZLOOEHH[FOXGHG
DVZLOOVXEMHFWVZKRKDYHQRSRVWGRVHVDIHW\DVVHVVPHQWV$VXEMHFWZKRXVHGDVWXG\
WUHDWPHQWEXWWRRNOHVVWKDQIXOOGRVHRIWUHDWPHQWZLOOTXDOLI\IRUWKLVSRSXODWLRQ
1RWH7KHVWDWHPHQWWKDWDVXEMHFWKDGQR$(VDOVRFRQVWLWXWHVDVDIHW\DVVHVVPHQW
 $QDO\VHVZLOOEHSHUIRUPHGDVIROORZV
- 'HPRJUDSKLFVZLOOEHVXPPDUL]HGIRUWKHP,775986DIHW\DQG1RQ5DQGRPL]HG
3RSXODWLRQV
- ([WHQWRIH[SRVXUHZLOOEHVXPPDUL]HGIRUWKH6DIHW\3RSXODWLRQ7KH6DIHW\
3RSXODWLRQZLOOEHXVHGWRVXPPDUL]HVDIHW\
- (IILFDF\DQDO\VHVZLOOEHSHUIRUPHGIRUWKH,77DQGP,773RSXODWLRQV,QJHQHUDO
WKHP,773RSXODWLRQZLOOEHFRQVLGHUHGWKHSULPDU\SRSXODWLRQIRUWKHHIILFDF\
DQDO\VHVZLWKWKH,77SRSXODWLRQEHLQJFRQVLGHUHGVXSSRUWLYH

(VWLPDQGV
7KUHHHVWLPDQGVRILQWHUHVWDUHGHILQHGIRUWKLVVWXG\HIILFDF\HVWLPDQGDWWULEXWDEOH
HVWLPDQGDQGWUHDWPHQWSROLF\HVWLPDQG
7KHHIILFDF\HVWLPDQGLVWKHSULPDU\HVWLPDQGRILQWHUHVWDQGLVWKHHIIHFWRIWKHUDQGRPL]HG
WUHDWPHQWVLQDOOVXEMHFWVDVVXPLQJFRQWLQXDWLRQRIUDQGRPL]HGWUHDWPHQWVIRUWKHGXUDWLRQRI
WKHVWXG\UHJDUGOHVVRIDFWXDOFRPSOLDQFH7KHSULPDU\DQDO\VLVIRUWKHHIILFDF\HVWLPDQGZLOO
EHFRQGXFWHGXVLQJWKHP,773RSXODWLRQZKHUHRQO\GDWDREWDLQHGSULRUWRVXEMHFWV
GLVFRQWLQXLQJIURPUDQGRPL]HGWUHDWPHQWZLOOEHXWLOL]HG7KLVDVVXPHVWKDWHIILFDF\
REVHUYHGRQWUHDWPHQWLVUHIOHFWLYHRIZKDWZRXOGKDYHRFFXUUHGDIWHUGLVFRQWLQXDWLRQRI
UDQGRPL]HGWUHDWPHQWKDGWKH\UHPDLQHGRQWUHDWPHQW
7KHDWWULEXWDEOHHVWLPDQGLVWKHHIIHFWRIWUHDWPHQWLQVXEMHFWVDWWULEXWDEOHWRWKHUDQGRPL]HG
WUHDWPHQW)RUWKLVHVWLPDQGGLVFRQWLQXDWLRQRIUDQGRPL]HGPHGLFDWLRQIRUUHDVRQVVXFKDV
WROHUDELOLW\RUODFNRIHIILFDF\LVFRQVLGHUHGDEDGRXWFRPH$QDO\VHVRIWKHDWWULEXWDEOH
HVWLPDQGZLOOEHFRQGXFWHGLQWKHP,773RSXODWLRQ'DWDWKDWDUHPLVVLQJGXHWRWUHDWPHQW
GLVFRQWLQXDWLRQZLOOEHLPSXWHGEDVHGRQWKHWKRUWKSHUFHQWLOHRIWKHUHIHUHQFHDUPV¶
GLVWULEXWLRQLIWKHUHDVRQLVUHDVRQDEO\DWWULEXWDEOHWRWROHUDELOLW\RUODFNRIHIILFDF\7KHWK
SHUFHQWLOHDSSOLHVWRDQHQGSRLQWIRUZKLFKDKLJKHUYDOXHLVDEHWWHURXWFRPHKRZHYHUWKH
WKSHUFHQWLOHDSSOLHVWRDQHQGSRLQWIRUZKLFKDKLJKHUYDOXHLVDZRUVHRXWFRPH)RUWKLV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
SXUSRVH))0',DQG%'0',DUHFRQVLGHUHGWKHUHIHUHQFHDUPV7KHHVWLPDWHGDYHUDJH
IURPWKHWZRUHIHUHQFHDUPV¶GLVWULEXWLRQVZLOOEHXVHG2WKHUPLVVLQJGDWDDUHWREHLPSXWHG
XVLQJWKHREVHUYHGGDWDPRGHOLHDVVXPHGWREHPLVVLQJDWUDQGRP0$5
7KHWUHDWPHQWSROLF\HVWLPDQGLVWKHHIIHFWRIUDQGRPL]HGWUHDWPHQWRYHUWKHVWXG\SHULRG
UHJDUGOHVVRIZKHWKHUUDQGRPL]HGWUHDWPHQWLVFRQWLQXHG$QDO\VHVRIWKHWUHDWPHQWSROLF\
HVWLPDQGZLOOEHFRQGXFWHGLQWKH,773RSXODWLRQLQZKLFKDOOREVHUYHGGDWDZLOOEHXWLOL]HG
UHJDUGOHVVRIZKHWKHUVXEMHFWVUHPDLQRQUDQGRPL]HGWUHDWPHQW
 6XEJURXS$QDO\VHV
6XEJURXSDQDO\VHVZLOOEHSHUIRUPHGIRUFKDQJHIURPEDVHOLQHLQPRUQLQJSUHGRVHWURXJK
)(9DQGUDWHRIPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQVHIILFDF\HVWLPDQGRQO\7KH
IROORZLQJVXEJURXSVZLOOEHFRQVLGHUHG
x +LVWRU\RI0RGHUDWHRU6HYHUH&23'([DFHUEDWLRQLQWKHODVW0RQWKV
o 
o 
x %DVHOLQH(RVLQRSKLO&RXQW
o FHOOVSHUPP
o FHOOVSHUPP
x &RXQWU\
(DFKVXEJURXSZLOOEHDQDO\]HGVHSDUDWHO\XVLQJWKHVDPHPRGHOWKDWZDVXVHGIRUWKH
RYHUDOOFRPELQHGVXEJURXSVDQDO\VLV(VWLPDWHVIRUWKHWUHDWPHQWHIIHFWDQGIRUWKH
WUHDWPHQWGLIIHUHQFHVZLOOEHGLVSOD\HGLQWKHHIILFDF\HQGSRLQWWDEOHVIRUHDFKVXEJURXS.
)RUHDFKVXEJURXSDQDO\VLVDWHVWIRUWKHWUHDWPHQWE\VXEJURXSLQWHUDFWLRQZLOOEH
SHUIRUPHGXVLQJWKHVDPHPRGHOWKDWZDVXVHGIRUWKHRYHUDOOFRPELQHGVXEJURXSVDQDO\VLV
EXWZLWKWKHDGGLWLRQRIWHUPVIRUVXEJURXSDQGWKHWUHDWPHQWE\VXEJURXSLQWHUDFWLRQ$
WDEOHZLOOEHSURYLGHGZLWKWKHSYDOXHIRUWKHWHVWRIWKHWUHDWPHQWE\VXEJURXSLQWHUDFWLRQ
(RVLQRSKLO&XW3RLQW([SORUDWLRQ
6XEJURXSDQDO\VHVRIWURXJK)(9ZLOOEHFRQGXFWHGLQWKHEDVHOLQHHRVLQRSKLOFRXQWKLJK
FHOOVSHUPPDQGWKHEDVHOLQHHRVLQRSKLOFRXQWORZFHOOVSHUPPVXEJURXSV
,WLVDFNQRZOHGJHGWKDWFHOOVSHUPPPD\QRWXOWLPDWHO\EHWKHDSSURSULDWHWKUHVKROGIRU
HYDOXDWLRQRIWUHDWPHQWEHQHILW7KXVDGGLWLRQDODQDO\VHVZLOOHYDOXDWHDOWHUQDWLYHWKUHVKROGV
DQGWKHUHVXOWVIURPWKHVHDQDO\VHVFRXOGWKHQLQIRUPWKUHVKROGVIRUIXWXUHFOLQLFDOVWXGLHV
7KLVH[SORUDWLRQZLOOLQFOXGHXVLQJDGGLWLYHPL[HGPRGHOVWKDWFRPELQHQRQSDUDPHWULF
UHJUHVVLRQIRUWKHUHODWLRQVKLSRIHRVLQRSKLOOHYHOVWRWURXJK)(9DVZHOODVSRWHQWLDOO\XVLQJ
VXEJURXSVGHILQHGE\GLIIHUHQWFXWSRLQWV$VLPLODUDQDO\VLVZLOODOVREHFRQGXFWHGIRUWKH
UDWHRIPRGHUDWHRUVHYHUH&23'H[DFHUEDWLRQV

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 +DQGOLQJRI0LVVLQJ'DWD
3UHGRVHVSLURPHWU\YDOXHVZLOOXVHWKHDYHUDJHRIWKHQRQPLVVLQJPLQXWH
DQGPLQXWHYDOXHV:HHNO\DYHUDJHVIRUH'LDU\EDVHGSDUDPHWHUVZLOOXVHDOO
QRQPLVVLQJYDOXHV
 6WDWLVWLFDO6RIWZDUH
'DWDSURFHVVLQJVWDWLVWLFDOVFUHHQLQJGHVFULSWLYHUHSRUWLQJDQGDQDO\VLVRIWKHHIILFDF\DQG
VDIHW\GDWDZLOOEHSHUIRUPHGXVLQJ6$69HUVLRQRUKLJKHU*UDSKVPD\DOVREH
SURGXFHGXVLQJ5>'HYHORSPHQW&RUH7HDP@



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 $'0,1,675$7,9(&216,'(5$7,216
 5HJXODWRU\$XWKRULW\$SSURYDO
7KH6SRQVRUZLOOREWDLQDSSURYDOWRFRQGXFWWKLVVWXG\IURPWKHDSSURSULDWHUHJXODWRU\
DJHQF\LQDFFRUGDQFHZLWKDQ\DSSOLFDEOHFRXQWU\VSHFLILFUHJXODWRU\UHTXLUHPHQWVSULRU
LQLWLDWLQJWKLVVWXG\LQDJLYHQFRXQWU\
 (WKLFDO&RQGXFWRIWKH6WXG\DQG,5%RU,(&$SSURYDO
7KLVVWXG\LVWREHFRQGXFWHGLQDFFRUGDQFHZLWK*RRG&OLQLFDO3UDFWLFH*&37KHVH
VWDQGDUGVUHVSHFWWKHIROORZLQJJXLGHOLQHV
 *XLGHOLQHIRU*&3(5&RQVROLGDWHG*XLGHOLQH,QWHUQDWLRQDO&RQIHUHQFHRQ
+DUPRQL]DWLRQRI7HFKQLFDO5HTXLUHPHQWVIRUWKH5HJLVWUDWLRQRI3KDUPDFHXWLFDOVIRU
+XPDQ8VH0D\
 86&)5GHDOLQJZLWKFOLQLFDOVWXGLHV&)5SDUWVDQG
 'HFODUDWLRQRI+HOVLQNLFRQFHUQLQJPHGLFDOUHVHDUFKLQKXPDQV(WKLFDO3ULQFLSOHVIRU
0HGLFDO5HVHDUFK,QYROYLQJ+XPDQ6XEMHFWV
KWWSZZZZPDQHWHQKRPHLQGH[KWPO
 $Q\DGGLWLRQDOUHJXODWRU\UHTXLUHPHQWV
7KH,QYHVWLJDWRURUWKH6SRQVRUZKHUHDSSOLFDEOHLVUHVSRQVLEOHIRUHQVXULQJWKDWWKLV
SURWRFROWKHVLWH¶V,&)DQGDQ\RWKHULQIRUPDWLRQWKDWZLOOEHSUHVHQWHGWRSRWHQWLDOVXEMHFWV
HJDGYHUWLVHPHQWVRULQIRUPDWLRQWKDWVXSSRUWVRUVXSSOHPHQWVWKH,&)DUHUHYLHZHGDQG
DSSURYHGE\WKHDSSURSULDWH,5%,(&7KH,QYHVWLJDWRUDJUHHVWRDOORZWKH,5%,(&GLUHFW
DFFHVVWRDOOUHOHYDQWGRFXPHQWV7KH,5%,(&PXVWEHFRQVWLWXWHGLQDFFRUGDQFHZLWKDOO
DSSOLFDEOHUHJXODWRU\UHTXLUHPHQWV
7KH6SRQVRUZLOOSURYLGHWKH,QYHVWLJDWRUZLWKUHOHYDQWGRFXPHQWVGDWDQHFHVVDU\IRU
,5%,(&UHYLHZRIWKHVWXG\,IWKHSURWRFROWKH,&)RUDQ\RWKHULQIRUPDWLRQWKDWWKH
,5%,(&KDVDSSURYHGIRUSUHVHQWDWLRQWRSRWHQWLDOVXEMHFWVLVDPHQGHGGXULQJWKHVWXG\WKH
,QYHVWLJDWRULVUHVSRQVLEOHIRUHQVXULQJWKH,5%,(&UHYLHZVDQGDSSURYHVZKHQDSSOLFDEOH
WKHVHDPHQGHGGRFXPHQWV7KH,QYHVWLJDWRUPXVWIROORZDOODSSOLFDEOHUHJXODWRU\
UHTXLUHPHQWVSHUWDLQLQJWRWKHXVHRIDQDPHQGHG,&)LQFOXGLQJREWDLQLQJ,5%,(&DSSURYDO
RIWKHDPHQGHGIRUPEHIRUHQHZVXEMHFWVFRQVHQWWRWDNHSDUWLQWKHVWXG\,5%,(&DSSURYDO
RIDQDPHQGHG,&)RWKHULQIRUPDWLRQPXVWEHSURPSWO\IRUZDUGHGWRWKH6SRQVRURULWV¶
GHVLJQHH
 6XEMHFW,QIRUPDWLRQDQG&RQVHQW
7KLVVWXG\ZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKDSSOLFDEOHVXEMHFWSULYDF\UHTXLUHPHQWV
7KHSURSRVHG,&)ZKLFKPXVWEHLQFRPSOLDQFHZLWKDSSOLFDEOHUHJXODWLRQVPXVWEH
UHYLHZHGDQGDSSURYHGE\WKH,5%DQGWKH6SRQVRUSULRUWRLQLWLDWLRQRIWKHVWXG\
7KH,QYHVWLJDWRUZLOOEHUHVSRQVLEOHIRUREWDLQLQJZULWWHQLQIRUPHGFRQVHQWIURPSRWHQWLDO
VXEMHFWVSULRUWRDQ\VWXG\VSHFLILF6FUHHQLQJ$FRS\RIWKHVLJQHG,&)ZLOOEHSURYLGHGWR
WKHVXEMHFWDQGWKHRULJLQDOZLOOEHUHWDLQHGE\WKH,QYHVWLJDWRU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 &RQILGHQWLDOLW\
 &RQILGHQWLDOLW\RI'DWD
%\VLJQLQJWKLVSURWRFROWKH,QYHVWLJDWRUDIILUPVWKDWLQIRUPDWLRQIXUQLVKHGWRWKH
,QYHVWLJDWRUE\WKH6SRQVRUZLOOEHPDLQWDLQHGLQFRQILGHQFH,QIRUPDWLRQUHODWLQJWRWKLV
VWXG\ZLOOEHGLYXOJHGWRDQ,5%,(&RUVLPLODUH[SHUWFRPPLWWHHDIILOLDWHGLQVWLWXWLRQRU
HPSOR\HHVRQO\XQGHUDQDSSURSULDWHXQGHUVWDQGLQJRIFRQILGHQWLDOLW\ZLWKVDLGSHUVRQV
'DWDJHQHUDWHGE\WKLVVWXG\ZLOOEHFRQVLGHUHGFRQILGHQWLDOE\WKH,QYHVWLJDWRUH[FHSWWRWKH
H[WHQWWKDWLWLVLQFOXGHGLQDSXEOLFDWLRQ
 &RQILGHQWLDOLW\RI6XEMHFW3DWLHQW5HFRUGV
%\VLJQLQJWKLVSURWRFROWKH,QYHVWLJDWRUDJUHHVWKDWWKH6SRQVRURULWV¶UHSUHVHQWDWLYH
,5%,(&RU5HJXODWRU\$JHQF\UHSUHVHQWDWLYHVPD\FRQVXOWDQGRUFRS\VWXG\GRFXPHQWVLQ
RUGHUWRYHULI\ZRUNVKHHW&5)GDWD%\VLJQLQJWKHFRQVHQWIRUPWKHVXEMHFWDJUHHVWRWKLV
SURFHVV,IVWXG\GRFXPHQWVDUHSKRWRFRSLHGGXULQJWKHSURFHVVRIYHULI\LQJZRUNVKHHW&5)
LQIRUPDWLRQWKHVXEMHFWZLOOEHLGHQWLILHGE\DXQLTXHFRGHIXOOQDPHVLQLWLDOVZLOOEH
PDVNHGSULRUWRWUDQVPLVVLRQWRWKH6SRQVRU,QDGGLWLRQWKH,QYHVWLJDWRUDJUHHVWRWUHDWDOO
VXEMHFWGDWDXVHGDQGGLVFORVHGLQFRQQHFWLRQZLWKWKLVVWXG\LQDFFRUGDQFHZLWKDOO
DSSOLFDEOHSULYDF\ODZVLH+HDOWK,QVXUDQFH3RUWDELOLW\DQG$FFRXQWDELOLW\$FWUXOHVDQG
UHJXODWLRQV
 4XDOLW\&RQWURODQG$VVXUDQFH
7KH6SRQVRULVUHVSRQVLEOHIRULPSOHPHQWLQJDQGPDLQWDLQLQJTXDOLW\FRQWURODQGTXDOLW\
DVVXUDQFHV\VWHPVZLWKZULWWHQ623VWRHQVXUHWKDWVWXGLHVDUHFRQGXFWHGDQGGDWDDUH
JHQHUDWHGGRFXPHQWHGDQGUHSRUWHGLQFRPSOLDQFHZLWKWKHSURWRFRODFFHSWHGVWDQGDUGVRI
*&3DQGDOODSSOLFDEOHIHGHUDOVWDWHDQGORFDOODZVUXOHVDQGUHJXODWLRQVUHODWLQJWRWKH
FRQGXFWRIDFOLQLFDOVWXG\
 'DWD0DQDJHPHQW
'DWDPDQDJHPHQWSURFHGXUHVDQGLQIRUPDWLRQIRUWKLVSURWRFROZLOOEHSURYLGHGE\WKH
6SRQVRU
 6WXG\0RQLWRULQJ
,QDFFRUGDQFHZLWKDSSOLFDEOHUHJXODWLRQV*&3DQG6SRQVRUSURFHGXUHVFOLQLFDOPRQLWRUV
ZLOOFRQWDFWWKHVLWHSULRUWRVXEMHFWHQUROOPHQWWRUHYLHZWKHSURWRFRODQGGDWDFROOHFWLRQ
SURFHGXUHVZLWKVLWHVWDII,QDGGLWLRQWKHPRQLWRUZLOOSHULRGLFDOO\FRQWDFWWKHVLWH
LQFOXGLQJFRQGXFWLQJRQVLWHYLVLWV7KHH[WHQWQDWXUHDQGIUHTXHQF\RIRQVLWHYLVLWVZLOOEH
EDVHGRQWKHVWXG\REMHFWLYHDQGRUHQGSRLQWVWKHSXUSRVHRIWKHVWXG\VWXG\GHVLJQ
FRPSOH[LW\DQGHQUROOPHQWUDWH
'XULQJWKHVHFRQWDFWVWKHPRQLWRUZLOO
 &KHFNWKHSURJUHVVRIWKHVWXG\
 5HYLHZVWXG\GDWDFROOHFWHG

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 &RQGXFWVRXUFHGRFXPHQWYHULILFDWLRQ
 ,GHQWLI\DQ\LVVXHVDQGDGGUHVVWKHLUUHVROXWLRQ
7KHVHUHYLHZVZLOOEHGRQHLQRUGHUWRYHULI\WKDWWKH
 'DWDDUHDXWKHQWLFDFFXUDWHDQGFRPSOHWH
 6DIHW\DQGULJKWVRIVXEMHFWVDUHEHLQJSURWHFWHG
 6WXG\LVFRQGXFWHGLQDFFRUGDQFHZLWKWKHFXUUHQWO\DSSURYHGSURWRFRODQGDQ\
DPHQGPHQWV*&3DQGDOODSSOLFDEOHUHJXODWRU\UHTXLUHPHQWV
7KH,QYHVWLJDWRUDJUHHVWRDOORZWKHPRQLWRUGLUHFWDFFHVVWRDOOUHOHYDQWGRFXPHQWVDQGWR
DOORFDWHKLVKHUWLPHDQGWKHWLPHRIKLVKHUVWDIIWRWKHPRQLWRUWRGLVFXVVILQGLQJVDQGDQ\
UHOHYDQWFRQFHUQV8SRQFRPSOHWLRQRIWKHVWXG\WKHPRQLWRUZLOOFRQGXFWWKHIROORZLQJ
DFWLYLWLHVLQFRQMXQFWLRQZLWKWKH,QYHVWLJDWRURUVLWHVWDIIDVDSSURSULDWH
 5HWXUQRIDOOVWXG\GDWDWRWKH6SRQVRU
 'DWDTXHULHV
 $FFRXQWDELOLW\UHFRQFLOLDWLRQDQGDUUDQJHPHQWVIRUXQXVHGLQYHVWLJDWLRQDOSURGXFWV
 5HYLHZRIVLWHVWXG\UHFRUGVIRUFRPSOHWHQHVV
$IWHUWKHILQDOUHYLHZRIWKHVWXG\ILOHVWKHILOHVVKRXOGEHVHFXUHGIRUWKHDSSURSULDWHWLPH
SHULRGDVVSHFLILHGLQ6HFWLRQ7KH,QYHVWLJDWRUZLOODOVRSHUPLWLQVSHFWLRQRIWKHVWXG\
ILOHVE\WKH6SRQVRUV¶4XDOLW\$VVXUDQFHDXGLWRUVDQGDXWKRUL]HGUHSUHVHQWDWLYHVRIWKH)'$
RURWKHUDSSOLFDEOHUHJXODWRU\DJHQFLHV
 5HWHQWLRQRI'DWD
'RFXPHQWVWKDWLQGLYLGXDOO\DQGFROOHFWLYHO\SHUPLWHYDOXDWLRQRIWKHFRQGXFWRIWKHVWXG\
DQGWKHTXDOLW\RIWKHGDWDSURGXFHGPXVWEHPDLQWDLQHGIRUUHYLHZE\WKH6SRQVRUV¶4XDOLW\
$VVXUDQFHDXGLWRUVDQGE\DOODSSOLFDEOHUHJXODWRU\DXWKRULWLHV7KHSHULRGRIWLPHWKHVH
GRFXPHQWVPXVWEHPDLQWDLQHGLVJRYHUQHGE\FRXQW\VSHFLILFUHJXODWLRQV7KH6SRQVRURU
LWVGHVLJQHHZLOOLQIRUPWKH,QYHVWLJDWRUZKHQWKHVHGRFXPHQWVPD\EHGHVWUR\HG7KH
6SRQVRURULWVGHVLJQHHPXVWEHQRWLILHGLQZULWLQJat least 6 months SULRUWRWKHLQWHQGHG
GDWHRIGLVSRVDORIDQ\VWXG\UHODWHGGRFXPHQWVWRDOORZWKH6SRQVRUWRPDNHDOWHUQDWH
VWRUDJHDUUDQJHPHQWV
 )LQDQFLDO'LVFORVXUH
7KH3ULQFLSDO,QYHVWLJDWRURUVXE,QYHVWLJDWRUVQDPHGRQWKH)RUP)'$ZLOOQHHGWR
FRPSOHWHDILQDQFLDOGLVFORVXUHIRUPSULRUWRVWXG\LQLWLDWLRQDWDQ\WLPHGXULQJWKHVWXG\LI
QHZLQIRUPDWLRQQHHGVWREHGLVFORVHGDQGIRU\HDUDIWHUVWXG\FRPSOHWLRQ,QYHVWLJDWRUV
VKRXOGPDNHWKH,5%,(&DZDUHRIDQ\ILQDQFLDOLQWHUHVWVWKDWWKH,QYHVWLJDWRUKDVLQWKH
LQYHVWLJDWLRQDOSURGXFW
 ,QYHVWLJDWRU¶V)LQDO5HSRUW
)ROORZLQJFRPSOHWLRQRIWKHVWXG\WKH,QYHVWLJDWRUZLOOVXEPLWDILQDOZULWWHQUHSRUWWRWKH
6SRQVRU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 3XEOLFDWLRQ3ROLF\
7KH6SRQVRULQWHQGVWRSXEOLVKWKHUHVXOWVRIDOORIWKHFOLQLFDOVWXGLHVWKDWLWVSRQVRUVLQ
FRPSOLDQFHZLWKWKH'HFODUDWLRQRI+HOVLQNLKWWSZZZZPDQHWHQKRPHLQGH[KWPO
&RQVLVWHQWZLWKWKHUHFRPPHQGDWLRQVRIWKHHGLWRUVRIVHYHUDOOHDGLQJPHGLFDOMRXUQDOVWKH
,QWHUQDWLRQDO&RPPLWWHHRI0HGLFDO-RXUQDO(GLWRUV,&0-(DXWKRUVKLSRISXEOLFDWLRQV
UHVXOWLQJIURP6SRQVRUVSRQVRUHGVWXGLHVVKRXOGIDLUO\UHFRJQL]HWKHDFWLYLWLHVRIWKRVHWKDW
KDYHPDGHDVLJQLILFDQWFRQWULEXWLRQWRWKHVWXG\,QDGGLWLRQWKH6SRQVRUUHFRJQL]HVDQG
DGKHUHVWRWKHSUHFHSWVRIWKH,QWHUQDWLRQDO6RFLHW\IRU0HGLFDO3XEOLFDWLRQV3URIHVVLRQDOV
,6033ZKLFKSURYLGHVJXLGDQFHWRWKHSUHSDUDWLRQRISXEOLFDWLRQVGLVFORVXUHRIFRQIOLFWV
RILQWHUHVWDQGWKHSURWHFWLRQRILQWHOOHFWXDOSURSHUW\7KXVLWLVDQWLFLSDWHGWKDWDXWKRUVKLS
ZLOOUHIOHFWWKHFRQWULEXWLRQPDGHE\6SRQVRUSHUVRQQHOWKHLQYHVWLJDWRUVDQGRWKHUV
LQYROYHGVXFKDVVWDWLVWLFLDQV
,QUHFHQW\HDUVLVVXHVDERXWFRQIOLFWVRILQWHUHVWDQGDFFXUDF\RIWKHVWXG\GDWDKDYHEHHQ
UDLVHGLQWKHPHGLFDOSUHVV$FFRUGLQJO\WKH6SRQVRUKDVGHYHORSHGSXEOLFDWLRQJXLGHOLQHV
DVGHVFULEHGEHORZ
 5HVSRQVLELOLW\(DFKSULQFLSDO,QYHVWLJDWRULVUHVSRQVLEOHIRUWKHDFFXUDF\DQG
FRPSOHWHQHVVRIDOOGDWDIURPWKHLUVLWH7KH6SRQVRURULWVUHSUHVHQWDWLYHVLV
UHVSRQVLEOHIRUWKHDFFXUDF\RIWKHGDWDHQWHUHGLQWRWKHVWXG\GDWDEDVHVDQGIRUWKH
DFFXUDF\RIWKHDQDO\VHVFRQGXFWHG
 $XWKRUVKLSDQG3XEOLFDWLRQ&RPPLWWHH7KH6SRQVRULQFROODERUDWLRQZLWKWKH
,QYHVWLJDWRUVZLOOHVWDEOLVKWKHDSSURSULDWHDXWKRUVKLSDQGUHVSRQVLELOLW\IRUGUDIWLQJ
VWXG\GRFXPHQWVLQDFFRUGDQFHZLWKWKHSULQFLSOHVRIWKH,&0-(DQG,6033,WLV
DQWLFLSDWHGWKDWDSXEOLFDWLRQFRPPLWWHHZLOOEHIRUPHGWRDVVXPHRYHUVLJKWRIWKHVH
DFWLYLWLHV$OOPDQXVFULSWVZLOOEHUHYLHZHGDQGDJUHHGXSRQEHIRUHVXEPLVVLRQIRU
SXEOLFDWLRQE\DOODXWKRUV
 6SRQVRU5HYLHZRI([WHUQDO0DQXVFULSWV&RQVLVWHQWZLWKWKHSUHYLRXVEXOOHWSRLQW
GUDIWVRIDQ\DQGDOOSXEOLFDWLRQVRUSUHVHQWDWLRQVWKDWPD\DULVHIURPWKLVVWXG\PXVWEH
VXEPLWWHGDWOHDVWGD\VSULRUWRVXEPLVVLRQIRUSXEOLFDWLRQRUSUHVHQWDWLRQWRWKH
6SRQVRUIRUUHYLHZDSSURYDODQGWRHQVXUHFRQVLVWHQF\ZLWKWKHSROLF\LQWKLVSURWRFRO
7KH6SRQVRUZLOOKDYHWKHULJKWWRUHTXHVWDSSURSULDWHPRGLILFDWLRQWRFRUUHFWIDFWVDQGWR
UHSUHVHQWLWVRSLQLRQVRUWKHRSLQLRQVRIWKHSXEOLFDWLRQFRPPLWWHHLIWKHVHGLIIHUZLWK
WKHSURSRVHGSXEOLFDWLRQ
 &RQILGHQWLDOLW\,QYHVWLJDWRUVZLOOFRQGXFWDOOLQWHUDFWLRQVZLWKWKH6SRQVRUDQGZLWK
WKLUGSDUWLHVFRQVLVWHQWZLWKWKHH[HFXWHGFRQILGHQWLDOLW\DJUHHPHQWV:KLOHSXEOLFDWLRQ
E\LQWHQWLRQSUHVHQWVWKHFULWLFDOVFLHQWLILFGDWDLQDSXEOLFIRUXPVRPHLQIRUPDWLRQ
VXFKDVIXWXUHSODQVUHVXOWVRIQRQFOLQLFDOVWXGLHVRUFKHPLFDOIRUPXODHPD\VWLOOQHHG
WRUHPDLQFRQILGHQWLDO
 0HGLFDO-RXUQDO5HYLHZ&RQVLVWHQWZLWKWKHLQWHQWLRQRIWKH6SRQVRUWRSXEOLVKWKH
VWXG\LQDIDLUDQGDFFXUDWHPDQQHUWKH6SRQVRUVXSSRUWVGLOLJHQFHLQWKHSXEOLFDWLRQ
UHYLHZSURFHVVRIPHGLFDOMRXUQDOV$FFRUGLQJO\XSRQUHTXHVWDOOSHUWLQHQWVWXG\GDWD
DQGLQIRUPDWLRQZLOOEHPDGHDYDLODEOHDVVXSSOHPHQWDOLQIRUPDWLRQIRUMRXUQDOHGLWRUV
DQGUHYLHZHUVWRHYDOXDWHDQGDXGLWHJSURWRFRODQGDPHQGPHQWVGDWDWDEXODWLRQVHWF
7KHMRXUQDODQGUHYLHZHUVZLOOQHHGWRPDNHDUUDQJHPHQWVWRPDLQWDLQWKHFRQILGHQWLDOLW\
RIVXFKVXSSOHPHQWDOLQIRUPDWLRQZKHUHUHOHYDQWDQGWKH6SRQVRUZLOOPDNHVXLWDEOH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
DUUDQJHPHQWVWRHQVXUHWKDWWKHLGHQWLW\RIMRXUQDOUHYLHZHUVLVNHSWFRQILGHQWLDO
5HFRUGVZLOOEHPDLQWDLQHGRIUHYLHZHUVDQGWKHUHVSHFWLYHGRFXPHQWVDQGGDWDVHWVWKDW
ZHUHUHYLHZHGE\HDFKRIWKHP
 5HSRUWLQJRI&OLQLFDO7ULDOV5HVXOWV7RSURYLGHWUDQVSDUHQF\LQWKHFRQGXFWDQG
UHSRUWLQJRIUDQGRPL]HGFOLQLFDOWULDOVWKH6SRQVRUUHSRUWVFOLQLFDOILQGLQJVEDVHGRQWKH
JXLGDQFHRI7KH&21VROLGDWHG6WDQGDUGVRI5HSRUWLQJ7ULDOV&2162576WDWHPHQW
>0RKOHU@$GGLWLRQDOO\DLWHPFKHFNOLVWZKLFKLVLQWHQGHGWRLPSURYHWKH
UHSRUWLQJRIDUDQGRPL]HGFRQWUROOHGWULDOIDFLOLWDWHUHDGHUXQGHUVWDQGLQJRIWKHWULDO
GHVLJQFRQGXFWDQDO\VLVDQGLQWHUSUHWDWLRQDQGWRVXSSRUWWKHLUDELOLW\WRDVVHVVWKH
YDOLGLW\RILWVUHVXOWV
 ,QWHUQHW&OLQLFDO7ULDO/LVWLQJ,QDGGLWLRQDOVRFRQVLVWHQWZLWKWKHUHFRPPHQGDWLRQV
RIWKH,&0-(WKH6SRQVRUZLOOPDNHDYDLODEOHDSSURSULDWHLQIRUPDWLRQUHJDUGLQJWKH
VWXG\YLDWKHLQWHUQHW7KLVZLOOLQFOXGHUHJLVWUDWLRQDQGOLVWLQJRIWKHVWXG\RQ
ZZZFOLQLFDOWULDOVJRYWKH861DWLRQDO,QVWLWXWHVRI+HDOWKOLVWLQJRIFOLQLFDOWULDOV



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 5()(5(1&(/,67
&HOOL%0DF1HH:$76(567DVN)RUFH6WDQGDUGVIRUWKHGLDJQRVLVDQGWUHDWPHQWRI
SDWLHQWVZLWK&23'DVXPPDU\RIWKH$76(56SRVLWLRQSDSHU(XU5HVSLU-

'HOODPDU\/$7DUDUD7(6PLWK'-HWDO+ROORZSRURXVSDUWLFOHVLQPHWHUHGGRVHLQKDOHUV
3KDUP5HV
(XUR4RO*URXS(4'$FFHVVHGDWKWWSZZZHXURTRORUJDERXWHTGKRZWRXVHHT
GKWPO1RYHPEHU
*OREDOVWUDWHJ\IRUWKHGLDJQRVLVPDQDJHPHQWDQGSUHYHQWLRQRI&23'*OREDO,QLWLDWLYH
IRU&KURQLF2EVWUXFWLYH/XQJ'LVHDVH*2/'KWWSZZZJROGFRSGRUJ
+LUVW3+3LWFDLUQ*5:HHUV-*HWDO,QYLYROXQJGHSRVLWLRQRIKROORZSRURXVSDUWLFOHV
IURPDSUHVVXUL]HGPHWHUHGGRVHLQKDOHU3KDUP5HV
-DSDQHVH5HVSLUDWRU\6RFLHW\-56*XLGHOLQHVIRUWKH'LDJQRVLVDQG7UHDWPHQWRI&23'
WKHGLWLRQ
-RQHV3:+DUGLQJ*%HUU\3HWDO'HYHORSPHQWDQGILUVWYDOLGDWLRQRIWKH&23'
DVVHVVPHQWWHVW(XU5HVSLU-
-RQHV3:&KHQ:+:LOFR[7.HWDO&KDUDFWHUL]LQJDQG4XDQWLI\LQJWKH6\PSWRPDWLF
)HDWXUHVRI&23'([DFHUEDWLRQV&KHVW
/HLG\1.6H[WRQ&&-RQHVHWDO0HDVXULQJUHVSLUDWRU\V\PSWRPVLQFOLQLFDOWULDOVRI
&23'UHOLDELOLW\DQGYDOLGLW\RIDGDLO\GLDU\7KRUD[0D\
/HYH\$66WHYHQV/$6FKPLG&+HWDO$QHZHTXDWLRQWRHVWLPDWHJORPHUXODUILOWUDWLRQ
UDWH$QQ,QWHUQ0HG
0DKOHU'$:HLQEHUJ'+:HOOV&.)HLQVWHLQ$57KHPHDVXUHPHQWRIG\VSQHD
&RQWHQWVLQWHUREVHUYHUDJUHHPHQWDQGSK\VLRORJLFFRUUHODWHVRIWZRQHZFOLQLFDOLQGH[HV
&KHVW
0LOOHU05+DQNLQVRQ-%UXVDVFR9HWDO6WDQGDUGLVDWLRQRIVSLURPHWU\(XU5HVSLU-

0RKOHU'+RSHZHOO66FKXO].)HWDO&216257([SODQDWLRQDQG(ODERUDWLRQ
XSGDWHGJXLGHOLQHVIRUUHSRUWLQJSDUDOOHOJURXSUDQGRPLVHGWULDOV,QW-6XUJ
GRLMLMVX(SXE2FW5HYLHZ
5'HYHORSPHQW&RUH7HDP5$ODQJXDJHDQGHQYLURQPHQWIRUVWDWLVWLFDOFRPSXWLQJ
5)RXQGDWLRQIRU6WDWLVWLFDO&RPSXWLQJ9LHQQD$XVWULD
:LWHN7-0DKOHU'$0LQLPDOLPSRUWDQWGLIIHUHQFHRIWKHWUDQVLWLRQG\VSQRHDLQGH[LQD
PXOWLQDWLRQDOFOLQLFDOWULDO(XU5HVSLU-



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 $33(1',&(6
$SSHQGL[ 6SLURPHWU\$VVHVVPHQW&ULWHULD
$SSHQGL[ 6SLURPHWU\3HUIRUPDQFH5HFRPPHQGDWLRQV
$SSHQGL[ 6XEMHFW,QVWUXFWLRQVIRU8VHRI%))0',DQG))0','HYLFHV
$SSHQGL[ ,QVWUXFWLRQVIRU8VHRI9HQWROLQ+)$,QKDOHU
$SSHQGL[ &23'$VVHVVPHQW7HVW&$7
$SSHQGL[ %',7',4XHVWLRQQDLUH
$SSHQGL[ 6W*HRUJH5HVSLUDWRU\4XHVWLRQQDLUH6*54
$SSHQGL[ (XUR4R/'LPHQVLRQV(4'4XHVWLRQQDLUH
$SSHQGL[ ([DFHUEDWLRQVRI&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH(;$&7
$SSHQGL[5XOHVIRU(YDOXDWLRQRI$EQRUPDO/LYHU/DERUDWRU\9DOXHV
$SSHQGL['RVH,QGLFDWRU5HDGLQJ
$SSHQGL[6SRQVRU6LJQDWRU\
$SSHQGL[,QYHVWLJDWRU¶V$JUHHPHQWDQG6LJQDWXUH3DJH


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
6SLURPHWU\$VVHVVPHQW&ULWHULD
$FFHSWDEOH9HUVXV8VDEOH7HVWV
Acceptable7HVWVPXVWPHHWWKHIROORZLQJ&ULWHULD
 $FFHSWDEOHVWDUWRIH[KDODWLRQZLWKEULVNXSVWURNHQRKHVLWDWLRQRUIDOVHVWDUWDQG
(9RI)9&RU/ZKLFKHYHULVWKHJUHDWHUVHHH[DPSOHLQ)LJXUH$
 1RFRXJKGXULQJWKHILUVWVHFRQG
 1RYDOVDOYDPDQHXYHU
 1ROHDN
 1RREVWUXFWLRQRIPRXWKSLHFH
 1RH[WUDEUHDWKV
 3ODWHDXDFKLHYHGLHWKHYROXPHWLPHFXUYHVKRZVQRFKDQJHLQYROXPH/
IRUVDQGWKHVXEMHFWKDVWULHGWRH[KDOHIRUDWOHDVWVHFRQGV

$QDFFHSWDEOHWHVWPHHWVDOOVHYHQFULWHULDOLVWHG7KLVLVWREHFRQVLGHUHGWKH³JROG
VWDQGDUG´
8VDEOHVSLURPHWU\WUDFLQJVDUHWKRVHWKDWRQO\PHHWFULWHULDDQG:KHQWKLVRFFXUVUHSHDW
WHVWLQJXSWRHLJKWDWWHPSWVLQDQHIIRUWWRREWDLQWKUHHDFFHSWDEOHVSLURJUDPV,IRQO\XVDEOH
WHVWVDUHREWDLQHGUHSRUWUHVXOWVZLOOEHEDVHGRQWKHWKUHHEHVWXVDEOHWULDOVZLWKREVHUYHG
OLPLWDWLRQV
)LJXUH$
([DPSOHRID8VDEOH6SLURJUDP

(9 EDFNH[WUDSRODWLRQYROXPH
7KHH[SDQGHGYHUVLRQRIWKHHDUO\SDUWRIDVXEMHFW¶VYROXPHWLPHVSLURJUDPLOOXVWUDWLQJ
EDFNH[WUDSRODWLRQWKURXJKWKHVWHHSHVWSDUWRIWKHFXUYHZKHUHIORZLV3()5WRGHWHUPLQH
WKHQHZ³WLPH]HUR´)RUFHGYLWDOFDSDFLW\/(9±/)9&EDFN
H[WUDSRODWLRQOLQHWKURXJK3()

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
%HWZHHQ0DQHXYHU5HSURGXFLELOLW\&ULWHULD
$IWHUWKUHHDFFHSWDEOHVSLURJUDPVKDYHEHHQREWDLQHGDSSO\WKHIROORZLQJWHVWV
 7KHWZRODUJHVWYDOXHVRI)9&PXVWEHZLWKLQ/RIHDFKRWKHU
 7KHWZRODUJHVWYDOXHVRI)(9PXVWEHZLWKLQ/RIHDFKRWKHU

,IWKHVHFULWHULDDUHPHWWKHVSLURPHWU\WHVWLQJIRUWKDWWLPHSRLQWPD\FRQFOXGH7KHKLJKHVW
)(9DQGWKHKLJKHVW)9&REWDLQHGDWHDFKWHVWLQJWLPHSRLQWHYHQLIIURPGLIIHUHQW
UHSURGXFLEOHWUDFLQJVZLOOEHFROOHFWHG
,IDFFHSWDELOLW\FULWHULDDUHQRWPHWFRQWLQXHWHVWLQJXQWLOWKH\DUHPHWRUWKHVXEMHFWFDQQRW
VKRXOGQRWFRQWLQXHPD[LPXPRIHLJKWDWWHPSWV


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
6SLURPHWU\3HUIRUPDQFH5HFRPPHQGDWLRQV
6SLURPHWU\GDWDRIWKHKLJKHVWTXDOLW\PXVWEHREWDLQHGIRUSURSHULQWHUSUHWDWLRQRIWKH
UHVXOWVRIWKLVSURWRFRO7RWKHVHHQGVDVWDQGDUGVSLURPHWHUZLOOEHXVHGSURYLGHGE\WKH
6SRQVRUFHQWUDOWUDLQLQJSURYLGHGTXDOLILFDWLRQZLOOEHUHTXLUHGDQGVSHFLILFRSHUDWLQJ
LQVWUXFWLRQZLOODOVREHSURYLGHG
6HULHV³$76(567DVN)RUFH6WDQGDUGL]DWLRQRI/XQJ)XQFWLRQ7HVWLQJ1XPEHULQ
6HULHV(XURSHDQ5HVSLUDWRU\-RXUQDO´
)(9$1')9&0$1(89(56
(TXLSPHQW5HTXLUHPHQWV
7KHVSLURPHWHUPXVWEHFDSDEOHRIDFFXPXODWLQJYROXPHIRUVORQJHUWLPHVDUH
UHFRPPHQGHGDQGPHDVXULQJYROXPHVRI/ERG\WHPSHUDWXUHLH&DPELHQW
SUHVVXUHVDWXUDWHGZLWKZDWHUYDSRUERG\WHPSHUDWXUHDQGSUHVVXUHVDWXUDWHG>%736@ZLWK
DQDFFXUDF\RIDWOHDVWRIUHDGLQJRU/ZKLFKHYHULVJUHDWHUZLWKIORZVEHWZHHQ
DQG/V7KHWRWDOUHVLVWDQFHWRDLUIORZDW/VPXVWEHFP+2/V
N3D/V7KHWRWDOUHVLVWDQFHPXVWEHPHDVXUHGZLWKDQ\WXELQJYDOYHVSUHILOWHU
HWFLQFOXGHGWKDWPD\EHLQVHUWHGEHWZHHQWKHVXEMHFWDQGWKHVSLURPHWHU6RPHGHYLFHV
PD\H[KLELWFKDQJHVLQUHVLVWDQFHGXHWRZDWHUYDSRUFRQGHQVDWLRQDQGDFFXUDF\
UHTXLUHPHQWVPXVWEHPHWXQGHU%736FRQGLWLRQVIRUXSWRHLJKWVXFFHVVLYH)9&PDQHXYHUV
SHUIRUPHGLQDPLQXWHSHULRGZLWKRXWLQVSLUDWLRQIURPWKHLQVWUXPHQW
'LVSOD\
)RURSWLPDOTXDOLW\FRQWUROERWKIORZYROXPHDQGYROXPHWLPHGLVSOD\VDUHXVHIXODQGWHVW
RSHUDWRUVVKRXOGYLVXDOO\LQVSHFWWKHSHUIRUPDQFHRIHDFKPDQHXYHUIRUTXDOLW\DVVXUDQFH
EHIRUHSURFHHGLQJZLWKDQRWKHUPDQHXYHU7KLVLQVSHFWLRQUHTXLUHVWUDFLQJVWRPHHWWKH
PLQLPXPVL]HDQGUHVROXWLRQUHTXLUHPHQWVVHWIRUWKLQWKLVVWDQGDUG'LVSOD\VRIIORZYHUVXV
YROXPHSURYLGHPRUHGHWDLOIRUWKHLQLWLDOSRUWLRQILUVWVRIWKH)9&PDQHXYHU6LQFHWKLV
SRUWLRQRIWKHPDQHXYHUSDUWLFXODUO\WKH3()5LVFRUUHODWHGZLWKWKHSOHXUDOSUHVVXUHGXULQJ
WKHPDQHXYHUWKHIORZYROXPHGLVSOD\LVXVHIXOWRDVVHVVWKHPDJQLWXGHRIHIIRUWGXULQJWKH
LQLWLDOSRUWLRQVRIWKHPDQHXYHU7KHDELOLW\WRRYHUOD\DVHULHVRIIORZYROXPHFXUYHV
UHJLVWHUHGDWWKHSRLQWRIPD[LPDOLQKDODWLRQPD\EHKHOSIXOLQHYDOXDWLQJUHSHDWDELOLW\DQG
GHWHFWLQJVXEPD[LPDOHIIRUWV+RZHYHULIWKHSRLQWRIPD[LPDOLQKDODWLRQYDULHVEHWZHHQ
EORZVWKHQWKHLQWHUSUHWDWLRQRIWKHVHUHVXOWVLVGLIILFXOWEHFDXVHWKHIORZVDWLGHQWLFDO
PHDVXUHGYROXPHVDUHEHLQJDFKLHYHGDWGLIIHUHQWDEVROXWHOXQJYROXPHV,QFRQWUDVW
GLVSOD\RIWKH)9&PDQHXYHUDVDYROXPHWLPHJUDSKSURYLGHVPRUHGHWDLOIRUWKHODWWHUSDUW
RIWKHPDQHXYHU$YROXPHWLPHWUDFLQJRIVXIILFLHQWVL]HDOVRDOORZVLQGHSHQGHQW
PHDVXUHPHQWDQGFDOFXODWLRQRISDUDPHWHUVIURPWKH)9&PDQHXYHUV,QDGLVSOD\RI
PXOWLSOHWULDOVWKHVHTXHQFLQJRIWKHEORZVVKRXOGEHDSSDUHQWWRWKHXVHU)RUWKHVWDUWRI
WHVWGLVSOD\WKHYROXPH±WLPHGLVSOD\VKRXOGLQFOXGHVDQGSUHIHUDEO\VEHIRUH
H[KDODWLRQVWDUWV]HURYROXPH7KLVWLPHSHULRGEHIRUHWKHUHLVDQ\FKDQJHLQYROXPHLV
QHHGHGWRFDOFXODWHWKHEDFNH[WUDSRODWHGYROXPH(9DQGWRHYDOXDWHHIIRUWGXULQJWKH
LQLWLDOSRUWLRQRIWKHPDQHXYHU7LPH]HURDVGHILQHGE\(9PXVWEHSUHVHQWHGDVWKH]HUR

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
SRLQWRQWKHJUDSKLFDORXWSXW7KHODVWVRIWKHPDQHXYHUVKRXOGEHGLVSOD\HGWRLQGLFDWHD
VDWLVIDFWRU\HQGRIWHVW
:KHQDYROXPH±WLPHFXUYHLVSORWWHGDVKDUGFRS\WKHYROXPHVFDOHPXVWEHPP/
%736)RUDVFUHHQGLVSOD\PP/LVVDWLVIDFWRU\7DEOH$
7DEOH$
5HFRPPHQGHG0LQLPDO6FDOH)DFWRUVIRU7LPH9ROXPHDQG)ORZRQ
*UDSKLFDO2XWSXW

,QVWUXPHQW'LVSOD\
+DUGFRS\*UDSKLFDO2XWSXW
3DUDPHWHU
5HVROXWLRQ5HTXLUHG
6FDOH)DFWRU
5HVROXWLRQ5HTXLUHG
9ROXPHD
/
PP/
/
)ORZD
/V
PP/V
/V
7LPH
V
PPV
V
D
7KHFRUUHFWDVSHFWUDWLRIRUIORZYHUVXVYROXPHGLVSOD\LVWZRXQLWVRIIORZSHURQHXQLWRIYROXPH

7KHWLPHVFDOHVKRXOGEHPPVDQGODUJHUWLPHVFDOHVDUHSUHIHUUHGPPVZKHQ
PDQXDOPHDVXUHPHQWVDUHPDGH:KHQWKHYROXPH±WLPHSORWLVXVHGLQFRQMXQFWLRQZLWKD
IORZ±YROXPHFXUYHLHERWKGLVSOD\PHWKRGVDUHSURYLGHGIRULQWHUSUHWDWLRQVDQGQRKDQG
PHDVXUHPHQWVDUHSHUIRUPHGWKHWLPHVFDOHUHTXLUHPHQWLVUHGXFHGWRPPVIURPWKH
XVXDOO\UHTXLUHGPLQLPXPRIPPV7DEOH$7KHUDWLRQDOHIRUWKLVH[FHSWLRQLVWKDW
WKHIORZ±YROXPHFXUYHFDQSURYLGHWKHPHDQVIRUTXDOLW\DVVHVVPHQWGXULQJWKHLQLWLDO
SRUWLRQRIWKH)9&PDQHXYHU7KHYROXPHWLPHFXUYHFDQEHXVHGWRHYDOXDWHWKHODWWHUSDUW
RIWKH)9&PDQHXYHUPDNLQJWKHWLPHVFDOHOHVVFULWLFDO
9DOLGDWLRQ
,WLVVWURQJO\UHFRPPHQGHGWKDWVSLURPHWU\V\VWHPVVKRXOGEHHYDOXDWHGXVLQJD
FRPSXWHUGULYHQPHFKDQLFDOV\ULQJHRULWVHTXLYDOHQWLQRUGHUWRWHVWWKHUDQJHRIH[KDODWLRQV
WKDWDUHOLNHO\WREHHQFRXQWHUHGLQWKHWHVWSRSXODWLRQ7HVWLQJWKHSHUIRUPDQFHRI
HTXLSPHQWLVQRWSDUWRIWKHXVXDOODERUDWRU\SURFHGXUHV
4XDOLW\&RQWURO
$WWHQWLRQWRHTXLSPHQWTXDOLW\FRQWURODQGFDOLEUDWLRQLVDQLPSRUWDQWSDUWRIJRRGODERUDWRU\
SUDFWLFH$WDPLQLPXPWKHUHTXLUHPHQWVDUHDVIROORZVDORJRIFDOLEUDWLRQUHVXOWVLV
PDLQWDLQHGWKHGRFXPHQWDWLRQRIUHSDLUVRURWKHUDOWHUDWLRQVZKLFKUHWXUQWKHHTXLSPHQW
WRDFFHSWDEOHRSHUDWLRQWKHGDWHVRIFRPSXWHUVRIWZDUHDQGKDUGZDUHXSGDWHVRUFKDQJHV
DQGLIHTXLSPHQWLVFKDQJHGRUUHORFDWHGHJLQGXVWULDOVXUYH\VFDOLEUDWLRQFKHFNVDQG
TXDOLW\FRQWUROSURFHGXUHVPXVWEHUHSHDWHGEHIRUHIXUWKHUWHVWLQJEHJLQV
.H\DVSHFWVRIHTXLSPHQWTXDOLW\FRQWURODUHVXPPDUL]HGLQ7DEOH$

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH$

6XPPDU\RI(TXLSPHQW4XDOLW\&RQWURO
7HVW
0LQLPDO
,QWHUYDO
$FWLRQ
9ROXPH
'DLO\
&DOLEUDWLRQFKHFNZLWKD/V\ULQJH
/HDN
'DLO\
FP+2N3DFRQVWDQWSUHVVXUHIRUPLQXWH
9ROXPH
/LQHDULW\
4XDUWHUO\
/LQFUHPHQWVZLWKDFDOLEUDWLQJV\ULQJHPHDVXUHGRYHUWKHHQWLUH
YROXPHUDQJH
)ORZ/LQHDULW\
:HHNO\
7HVWDWOHDVWWKUHHGLIIHUHQWIORZUDQJHV
7LPH
4XDUWHUO\
0HFKDQLFDOUHFRUGHUFKHFNZLWKVWRSZDWFK
6RIWZDUH
1HZYHUVLRQV
/RJLQVWDOODWLRQGDWHDQGSHUIRUPWHVWXVLQJ³NQRZQ´VXEMHFW

&DOLEUDWLRQLVWKHSURFHGXUHIRUHVWDEOLVKLQJWKHUHODWLRQVKLSEHWZHHQVHQVRUGHWHUPLQHG
YDOXHVRIIORZRUYROXPHDQGWKHDFWXDOIORZRUYROXPH$FDOLEUDWLRQFKHFNLVGLIIHUHQW
IURPFDOLEUDWLRQDQGLVWKHSURFHGXUHXVHGWRYDOLGDWHWKDWWKHGHYLFHLVZLWKLQFDOLEUDWLRQ
OLPLWVHJRIWUXH,IDGHYLFHIDLOVLWVFDOLEUDWLRQFKHFNWKHQDQHZFDOLEUDWLRQ
SURFHGXUHRUHTXLSPHQWPDLQWHQDQFHLVUHTXLUHG&DOLEUDWLRQFKHFNVPXVWEHXQGHUWDNHQ
GDLO\RUPRUHIUHTXHQWO\LIVSHFLILHGE\WKHPDQXIDFWXUHU7KHV\ULQJHXVHGWRFKHFNWKH
YROXPHFDOLEUDWLRQRIVSLURPHWHUVPXVWKDYHDQDFFXUDF\RIP/RURIWKHIXOO
VFDOHP/IRUD/V\ULQJHDQGWKHPDQXIDFWXUHUPXVWSURYLGHUHFRPPHQGDWLRQV
FRQFHUQLQJDSSURSULDWHLQWHUYDOVEHWZHHQV\ULQJHFDOLEUDWLRQFKHFNV8VHUVVKRXOGEHDZDUH
WKDWDV\ULQJHZLWKDQDGMXVWDEOHRUYDULDEOHVWRSPD\EHRXWRIFDOLEUDWLRQLIWKHVWRSLVUHVHW
RUDFFLGHQWDOO\PRYHG&DOLEUDWLRQV\ULQJHVVKRXOGEHSHULRGLFDOO\HJPRQWKO\OHDNWHVWHG
DWPRUHWKDQRQHYROXPHXSWRWKHLUPD[LPXPWKLVFDQEHGRQHE\DWWHPSWLQJWRHPSW\WKHP
ZLWKWKHRXWOHWFRUNHG$GURSSHGRUGDPDJHGV\ULQJHVKRXOGEHFRQVLGHUHGRXWRI
FDOLEUDWLRQXQWLOLWLVFKHFNHG
:LWKUHJDUGWRWLPHDVVHVVLQJPHFKDQLFDOUHFRUGHUWLPHVFDOHDFFXUDF\ZLWKDVWRSZDWFK
PXVWEHSHUIRUPHGDWOHDVWTXDUWHUO\$QDFFXUDF\RIZLWKLQPXVWEHDFKLHYHG
4XDOLW\&RQWUROIRU9ROXPH0HDVXULQJ'HYLFHV
7KHYROXPHDFFXUDF\RIWKHVSLURPHWHUPXVWEHFKHFNHGDWOHDVWGDLO\ZLWKDVLQJOH
GLVFKDUJHRID/FDOLEUDWHGV\ULQJH'DLO\FDOLEUDWLRQFKHFNLQJLVKLJKO\UHFRPPHQGHGVR
WKDWWKHRQVHWRIDSUREOHPFDQEHGHWHUPLQHGZLWKLQRQHGD\DQGDOVRWRKHOSGHILQH
GD\WRGD\ODERUDWRU\YDULDELOLW\0RUHIUHTXHQWFKHFNVPD\EHUHTXLUHGLQVSHFLDO
FLUFXPVWDQFHVVXFKDVGXULQJLQGXVWULDOVXUYH\VRURWKHUVWXGLHVLQZKLFKDODUJHQXPEHU
RIVXEMHFWPDQHXYHUVDUHFDUULHGRXWWKHHTXLSPHQW¶VFDOLEUDWLRQVKRXOGEHFKHFNHGPRUH
IUHTXHQWO\WKDQGDLO\DQGZKHQWKHDPELHQWWHPSHUDWXUHLVFKDQJLQJHJILHOGVWXGLHV
YROXPHDFFXUDF\PXVWEHFKHFNHGPRUHIUHTXHQWO\WKDQGDLO\DQGWKH%736FRUUHFWLRQIDFWRU
DSSURSULDWHO\XSGDWHG
7KHDFFXUDF\RIWKHV\ULQJHYROXPHPXVWEHFRQVLGHUHGLQGHWHUPLQLQJZKHWKHUWKHPHDVXUHG
YROXPHLVZLWKLQDFFHSWDEOHOLPLWV)RUH[DPSOHLIWKHV\ULQJHKDVDQDFFXUDF\RID
UHDGLQJRILVDSSURSULDWH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7KHFDOLEUDWLRQV\ULQJHVKRXOGEHVWRUHGDQGXVHGLQVXFKDZD\DVWRPDLQWDLQWKHVDPH
WHPSHUDWXUHDQGKXPLGLW\RIWKHWHVWLQJVLWH7KLVLVEHVWDFFRPSOLVKHGE\NHHSLQJWKH
V\ULQJHLQFORVHSUR[LPLW\WRWKHVSLURPHWHUEXWRXWRIGLUHFWVXQOLJKWDQGDZD\IURPKHDW
VRXUFHV
9ROXPHW\SHVSLURPHWHUV\VWHPVPXVWEHHYDOXDWHGIRUOHDNVHYHU\GD\7KHLPSRUWDQFHRI
XQGHUWDNLQJWKLVGDLO\WHVWFDQQRWEHRYHUVWUHVVHG/HDNVFDQEHGHWHFWHGE\DSSO\LQJD
FRQVWDQWSRVLWLYHSUHVVXUHRIFP+2N3DZLWKWKHVSLURPHWHURXWOHWRFFOXGHG
SUHIHUDEO\DWRULQFOXGLQJWKHPRXWKSLHFH$Q\REVHUYHGYROXPHORVVRIP/DIWHU
RQHPLQXWHLQGLFDWHVDOHDNDQGQHHGVWREHFRUUHFWHG
$WOHDVWTXDUWHUO\YROXPHVSLURPHWHUVPXVWKDYHWKHLUFDOLEUDWLRQFKHFNHGRYHUWKHLUHQWLUH
YROXPHUDQJHXVLQJDFDOLEUDWHGV\ULQJHRUDQHTXLYDOHQWYROXPHVWDQGDUG7KHPHDVXUHG
YROXPHVKRXOGEHZLWKLQRIWKHUHDGLQJRUP/ZKLFKHYHULVJUHDWHU7KLVOLPLW
LQFOXGHVWKHDFFXUDF\OLPLWIRUD/V\ULQJH7KHOLQHDULW\FKHFNSURFHGXUHSURYLGHG
E\WKHPDQXIDFWXUHUFDQEHXVHGLILWLVHTXLYDOHQWWRRQHRIWKHIROORZLQJSURFHGXUHV
FRQVHFXWLYHLQMHFWLRQVRI/YROXPHLQFUHPHQWVZKLOHFRPSDULQJREVHUYHGYROXPHZLWK
WKHFRUUHVSRQGLQJFXPXODWLYHPHDVXUHGYROXPHHJ±±±«±DQG±/IRUDQ
/VSLURPHWHUDQGLQMHFWLRQRID/YROXPHVWDUWLQJDWDPLQLPDOVSLURPHWHUYROXPH
WKHQUHSHDWLQJWKLVZLWKD/LQFUHPHQWLQWKHVWDUWSRVLWLRQHJ±±±±±DQG
±/IRUDQ/VSLURPHWHU7KHOLQHDULW\FKHFNLVFRQVLGHUHGDFFHSWDEOHLIWKHVSLURPHWHU
PHHWVWKHYROXPHDFFXUDF\UHTXLUHPHQWVIRUDOOYROXPHVWHVWHG
4XDOLW\&RQWUROIRU)ORZ0HDVXULQJ'HYLFHV
:LWKUHJDUGVWRYROXPHDFFXUDF\FDOLEUDWLRQFKHFNVPXVWEHXQGHUWDNHQDWOHDVWGDLO\XVLQJ
D/V\ULQJHGLVFKDUJHGDWOHDVWWKUHHWLPHVWRJLYHDUDQJHRIIORZVYDU\LQJEHWZHHQDQG
/VZLWK/LQMHFWLRQWLPHVRIVDQGV7KHYROXPHDWHDFKIORZVKRXOGPHHWWKH
DFFXUDF\UHTXLUHPHQWRI)RUGHYLFHVXVLQJGLVSRVDEOHIORZVHQVRUVDQHZVHQVRU
IURPWKHVXSSO\XVHGIRUSDWLHQWWHVWVVKRXOGEHWHVWHGHDFKGD\
)RUOLQHDULW\DYROXPHFDOLEUDWLRQFKHFNVKRXOGEHSHUIRUPHGZHHNO\ZLWKD/V\ULQJHWR
GHOLYHUWKUHHUHODWLYHO\FRQVWDQWIORZVDWDORZIORZWKHQWKUHHDWDPLGUDQJHIORZDQG
ILQDOO\WKUHHDWDKLJKIORZ7KHYROXPHVDFKLHYHGDWHDFKRIWKHVHIORZVVKRXOGHDFKPHHW
WKHDFFXUDF\UHTXLUHPHQWRI
9,7$/&$3$&,7<0$1(89(56
(TXLSPHQW
)RUPHDVXUHPHQWVRIYLWDOFDSDFLW\9&WKHVSLURPHWHURUIORZPHWHUPXVWFRPSO\ZLWKWKH
UHTXLUHPHQWVIRU)9&DVGHVFULEHGSUHYLRXVO\DQGEHFDSDEOHRIDFFXPXODWLQJYROXPHIRU
V([SLUDWRU\PDQHXYHUVRULGHDOO\ERWKLQVSLUDWRU\DQGH[SLUDWRU\PDQHXYHUVVKRXOG
EHLQFOXGHGLQWKHGLVSOD\RI9&PDQHXYHU5HJDUGOHVVRIZKHWKHUWKHLQVSLUDWRU\RU
H[SLUDWRU\PDQHXYHULVXVHGIRUGHULYLQJPHDVXUHPHQWVDGLVSOD\RIWKHHQWLUHUHFRUGHG9&
PDQHXYHUPXVWEHSURYLGHG7KHPD[LPDOH[SLUDWRU\YROXPHPXVWEHDVVHVVHGWRGHWHUPLQH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
ZKHWKHUWKHVXEMHFWKDVREWDLQHGDSODWHDXLQWKHH[SLUDWRU\HIIRUW)RUGLVSOD\RIWKHVORZ
9&WKHWLPHVFDOHPD\EHUHGXFHGWRPPV
7(&+1,&$/&216,'(5$7,216
0LQLPDOUHFRPPHQGDWLRQVIRUVSLURPHWU\V\VWHPV
$FFXUDWHUHVXOWVUHTXLUHDFFXUDWHHTXLSPHQW6SLURPHWHUHTXLSPHQWUHFRPPHQGDWLRQVDSSO\
WRDOOVSLURPHWHUVDQGDUHPLQLPDOUHTXLUHPHQWV,QVRPHFLUFXPVWDQFHVLWPD\EH
DSSURSULDWHWRH[FHHGWKHVHUHTXLUHPHQWVLHLQVRPHUHVHDUFKVXUYHLOODQFHDSSOLFDWLRQV
,QVWUXPHQWDWLRQUHFRPPHQGDWLRQVVKRXOGEHIROORZHGWRSURYLGHDFFXUDWHVSLURPHWULFGDWD
DQGLQIRUPDWLRQWKDWLVFRPSDUDEOHIURPODERUDWRU\WRODERUDWRU\DQGIURPRQHWLPHSHULRGWR
DQRWKHU7KHDFFXUDF\RIDVSLURPHWU\V\VWHPGHSHQGVRQFKDUDFWHULVWLFVRIWKHHQWLUH
V\VWHPIURPWKHYROXPHRUIORZWUDQVGXFHUDQGWKHXVHRIDQLQOLQHILOWHUWRWKHUHFRUGHU
GLVSOD\RUSURFHVVRU&KDQJHVLQDQ\DVSHFWRIWKHHTXLSPHQWRUHUURUVDWDQ\VWHSLQWKH
SURFHVVFDQDIIHFWWKHDFFXUDF\RIWKHUHVXOWV)RUH[DPSOHLIWKH%736FRUUHFWLRQIDFWRULV
ZURQJDQDFFXUDWHO\PHDVXUHG)9&ZLOOEHLQFRUUHFWO\UHSRUWHG6SLURPHWHUVDUHQRW
UHTXLUHGWRPHDVXUHDOORIWKHLQGLFHVLQ7DEOH$EXWPXVWPHHWWKHUHFRPPHQGDWLRQVIRU
WKRVHWKDWDUHPHDVXUHG$FFXUDF\DQGUHSHDWDELOLW\UHFRPPHQGDWLRQVDSSO\RYHUWKHHQWLUH
YROXPHUDQJHRIWKHLQVWUXPHQW
7DEOH$
5DQJHDQG$FFXUDF\5HFRPPHQGDWLRQV6SHFLILHGIRU)RUFHG([SLUDWRU\
0DQHXYHUV
7HVW
5DQJH$FFXUDF\%736
)ORZ
5DQJH
/V
7LPHV
5HVLVWDQFHDQG%DFN
3UHVVXUH
7HVW6LJQDO
9&
±/RIUHDGLQJRU
/ZKLFKHYHULV
JUHDWHU



/&DOLEUDWLRQ
V\ULQJH
)9&
±/RIUHDGLQJRU
/ZKLFKHYHULV
JUHDWHU


FP+2/V
N3D/V
$76
ZDYHIRUPV/
&DOLEUDWLRQV\ULQJH
)(9
±/RIUHDGLQJRU
/ZKLFKHYHULV
JUHDWHU


FP+2/V
N3D/V
$76ZDYHIRUPV
7LPH
=HUR
7KHWLPHSRLQWIURPZKLFK
DOO)(9WPHDVXUHPHQWVDUH
WDNHQ


%DFNH[WUDSRODWLRQ

$76 $PHULFDQ7KRUDFLF6RFLHW\%736 ERG\WHPSHUDWXUHDQGSUHVVXUHVDWXUDWHG)(9 IRUFHGH[SLUDWRU\
YROXPHLQVHFRQG)(9W IRUFHGH[SLUDWRU\YROXPHLQWVHFRQGV)9& IRUFHGYLWDOFDSDFLW\9& YLWDO
FDSDFLW\

%736FRUUHFWLRQ
$OOVSLURPHWU\YDOXHVVKRXOGEHUHSRUWHGDW%736E\DQ\PHWKRGPHDVXULQJWHPSHUDWXUH
DQGEDURPHWULFSUHVVXUHSURYHQHIIHFWLYHE\WKHPDQXIDFWXUHU)RUYROXPHW\SH
VSLURPHWHUVWKHWHPSHUDWXUHLQVLGHWKHVSLURPHWHUVKRXOGEHPHDVXUHGIRUHDFKEUHDWKLQJ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
PDQHXYHU5HJDUGOHVVRIWKH%736FRUUHFWLRQWHFKQLTXHXVHGWKHDPELHQWWHPSHUDWXUHPXVW
DOZD\VEHUHFRUGHGZLWKDQDFFXUDF\RI&,QVLWXDWLRQVZKHUHWKHDPELHQWDLU
WHPSHUDWXUHLVFKDQJLQJUDSLGO\!&LQPLQFRQWLQXRXVWHPSHUDWXUHFRUUHFWLRQVPD\
EHQHFHVVDU\6SLURPHWHUXVHUVVKRXOGEHDZDUHRISRWHQWLDOSUREOHPVZLWKWHVWLQJSHUIRUPHG
DWORZHUDPELHQWWHPSHUDWXUHV&LVWKHORZHUOLPLWIRUDPELHQWWHPSHUDWXUHXQOHVVD
PDQXIDFWXUHUVWDWHVWKDWWKHLUVSLURPHWHUZLOORSHUDWHDFFXUDWHO\DWORZHUDPELHQW
WHPSHUDWXUHV,IEDURPHWULFSUHVVXUHLVQRWXVHGLQFDOFXODWLQJWKH%736FRUUHFWLRQIDFWRU
WKHUDQJHRIEDURPHWULFSUHVVXUHVRYHUZKLFKWKH%736FRUUHFWLRQIDFWRULVYDOLGPXVWEH
SXEOLVKHG



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
6XEMHFW,QVWUXFWLRQVIRU8VHRI%))0',DQG))0',
'HYLFHV
+RZGR,VWRUHWKH,QKDOHU"
x 7KHLQKDOHUVKRXOGEHVWRUHGEHORZ&)LQDGU\SODFH([FXUVLRQVSHUPLWWHGXS
WR&)
x 7KHFRQWHQWVRIWKHFDQLVWHUDUHXQGHUSUHVVXUH'RQRWSXQFWXUHRUWKURZWKHFDQLVWHU
LQWRDILUHRULQFLQHUDWRU'RQRWXVHRUVWRUHLWQHDUKHDWRURSHQIODPH6WRUDJHDERYH
)PD\FDXVHWKHFDQLVWHUWREXUVW
x .HHSWKHSURGXFWDQGDOOPHGLFLQHVRXWRIWKHUHDFKRIFKLOGUHQ
 
)RU2UDO,QKDODWLRQ2QO\

3DUWVRIWKH,QKDOHU
F
7KHSDUWVRI\RXULQKDOHUDUHVHHQLQ)LJXUH
)LJXUH

G
7KH'RVHLQGLFDWRUOHWV\RXNQRZDERXWKRZPDQ\SXIIVDUHOHIWLQ\RXULQKDOHUDQGLV
WKHSDUWRIWKHLQKDOHUWKDWLVSUHVVHGWRGLVSHQVHDSXIIRIPHGLFDWLRQ6HH)LJXUH
H
7KH'RVHLQGLFDWRUVKRXOGEHSRLQWLQJMXVWWRWKHULJKWRIZKHQ\RXULQKDOHULVQHZ
6HH)LJXUH
I
7KH'RVHLQGLFDWRUKDVQXPEHUVIRUHYHU\SXIIV7KH'RVHLQGLFDWRUGLVSOD\ZLOO
PRYHDIWHUHYHU\WHQWKSXII
J
)RUH[DPSOHLIWKH'RVHLQGLFDWRULVSRLQWLQJWRVHH)LJXUHDDQG\RXWDNH
SXIIVLWZLOOPRYHEHWZHHQDQG7KLVPHDQVWKDWWKHUHDUHSXIIVRIPHGLFLQH
OHIWVHH)LJXUHE$IWHUPRUHSXIIVDUHXVHGWKH'RVHLQGLFDWRUSRLQWHUZLOOPRYH
WRWKHQXPEHU7KLVPHDQVWKDWWKHUHDUHSXIIVRIPHGLFLQHOHIWVHH)LJXUHF
&DS
'RVHLQGLFDWRU
&DQLVWHU
$FWXDWRU
6,'(9,(:
0RXWKSLHFH
7239,(:
'RVHLQGLFDWRU
GLVSOD\ZLQGRZ
3UHVVKHUH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

K
7KH'RVHLQGLFDWRUQXPEHUZLOOFRQWLQXHWRFKDQJHDIWHUHYHU\SXIIV
L
:KHQWKHQXPEHULQWKH'RVHLQGLFDWRUZLQGRZFKDQJHVWRDQGWKHFRORUEHKLQGWKH
QXPEHUFKDQJHVWRUHGWKLVPHDQVWKDWWKHUHDUHRQO\SXIIVOHIWLQ\RXULQKDOHU6HH
)LJXUHG

)LJXUHG

3UHSDULQJWKH,QKDOHUIRU8VH
7KHLQKDOHUFRPHVLQDIRLOSRXFKWKDWFRQWDLQVDGU\LQJSDFNHWGHVLFFDQW
M
7DNHWKHLQKDOHURXWRIWKHIRLOSRXFK
N
7KURZDZD\WKHSRXFKDQGWKHGU\LQJSDFNHW'RQRWHDWRULQKDOHWKHFRQWHQWVRIWKH
GU\LQJSDFNHW
O
5HPRYHWKH&DSIURPWKH0RXWKSLHFHDVVKRZQLQ)LJXUH
)LJXUH

3ULPHWKHLQKDOHUEHIRUH\RXXVHLWIRUWKHILUVWWLPH

3ULPLQJWKH,QKDOHU
Figure 2b 
110 puffs 
Figure 2a 
120 puffs 
Figure 2c 
100 puffs 

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
P &KHFNLQVLGHWKH0RXWKSLHFHIRUREMHFWVEHIRUHXVH
Q
+ROGWKH$FWXDWRUZLWKWKH0RXWKSLHFHSRLQWLQJDZD\IURP\RXDQGRWKHUVDVVKRZQLQ
)LJXUHD
R
6KDNHWKHLQKDOHUZHOOEHIRUHHDFKSXII
S
3XVKGRZQIXOO\RQWKHFHQWHUQRWµRIIFHQWHU¶RIWKH'RVHLQGLFDWRURQWRSRIWKH
&DQLVWHUVHH)LJXUHXQWLOWKH&DQLVWHUVWRSVPRYLQJLQWKH$FWXDWRUWRUHOHDVHD
SXIIIURPWKH0RXWKSLHFHDVVKRZQLQ)LJXUHE1RWH,WLVQRUPDOWRKHDUDVRIWFOLFN
IURPWKHGRVHLQGLFDWRUDVLWFRXQWVGRZQGXULQJXVH
T
5HSHDWWKLVSULPLQJVWHSPRUHWLPHVIRUDWRWDORIWLPHVVKDNLQJWKHLQKDOHUHDFKWLPH
EHIRUH\RXSUHVVLW
U
$IWHUFRPSOHWLQJWKHSULPLQJSXIIV\RXULQKDOHULVQRZSULPHGUHDG\WRXVHIRUWKHILUVW
WLPH
<RXPXVWUHSULPH\RXULQKDOHUDJDLQLI\RXKDYHQRWXVHGLWLQPRUHWKDQGD\V7DNHWKH
FDSRIIWKHPRXWKSLHFHDQGVKDNHDQGVSUD\WKHLQKDOHUWLPHVLQWRWKHDLUDZD\IURP\RXU
IDFH





8VLQJWKH,QKDOHU
<RXUGRVHRIPHGLFLQHFRPHVIURPSXIIVIURPWKHLQKDOHU
5HIHUWR)LJXUHIRU6WHSWKURXJK6WHS
V
6WHS5HPRYHWKH&DSIURPWKH0RXWKSLHFH
W
6WHS6KDNHWKHLQKDOHUZHOOEHIRUHHDFKSXII
X
6WHS:KLOHKROGLQJWKHLQKDOHUZLWKWKH0RXWKSLHFHSRLQWLQJWRZDUGV\RXEUHDWKHRXW
WKURXJK\RXUPRXWKWRHPSW\DVPXFKDLUIURP\RXUOXQJVDVSRVVLEOH
Y
6WHS&ORVH\RXUOLSVDURXQGWKH0RXWKSLHFHDQGWLOW\RXUKHDGEDFNVOLJKWO\WRPDNH
VXUH\RXUWRQJXHLVDZD\IURPWKH0RXWKSLHFH
Z 6WHS7DNHDGHHSEUHDWKLQLQKDOHVORZO\WKURXJK\RXUPRXWKZKLOHSUHVVLQJGRZQ
ILUPO\RQWKHFHQWHUQRWµRIIFHQWHU¶RIWKH'RVHLQGLFDWRUXQWLOWKH&DQLVWHUVWRSV
PRYLQJLQWKH$FWXDWRUDQGDSXIIKDVEHHQUHOHDVHG7KHQVWRSSUHVVLQJWKH'RVH
LQGLFDWRU
Figure 4a 
Figure 4b 

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
[
6WHS:KHQ\RXKDYHILQLVKHGEUHDWKLQJLQUHPRYHWKH0RXWKSLHFHIURP\RXUPRXWK
DQGKROG\RXUEUHDWKIRUVHFRQGVRUDVORQJDVFRPIRUWDEOH
\
6WHS7KHQEUHDWKHRXWQRUPDOO\
7DNH\RXUVHFRQGSXIIRIPHGLFLQHE\UHSHDWLQJ6WHSWKURXJK6WHS
]
6WHS5HSODFHWKH&DSEDFNRQWKH0RXWKSLHFH

)LJXUH

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
+RZWRFOHDQWKH,QKDOHU
,WLVYHU\LPSRUWDQWWRNHHS\RXULQKDOHUFOHDQVRPHGLFLQHZLOOQRWEXLOGXSDQGEORFNWKH
VSUD\WKURXJKWKH0RXWKSLHFH6HH)LJXUH
)LJXUH

7KH&DQLVWHUVKRXOGEHJHQWO\SXOOHGIURPWKHWRSRIWKH$FWXDWRURQFHDZHHNDQGWKH
$FWXDWRUFOHDQHG'RQRWFOHDQWKH&DQLVWHURUOHWLWJHWZHW



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 6WHS3XOOWKH&DQLVWHURXWRIWKH$FWXDWRUDVVKRZQLQ)LJXUH
)LJXUH
 6WHS6HWWKH&DQLVWHUDVLGHZKHUHLWZLOOQRWJHWZHW
 6WHS7DNHWKH&DSRIIWKH0RXWKSLHFH
 6WHS5LQVHWKH$FWXDWRUWKURXJKWKHWRSZLWKZDUPUXQQLQJZDWHUIRUVHFRQGV
7KHQULQVHWKHDFWXDWRUDJDLQWKURXJKWKH0RXWKSLHFHVHH)LJXUH

)LJXUH

 6WHS6KDNHDOORIWKHZDWHUGURSOHWVRXWRIWKH$FWXDWRU
 6WHS/RRNLQWKH$FWXDWRUDQGWKH0RXWKSLHFHWRPDNHVXUHLWLVFOHDQDQGFOHDU
5HSHDW6WHSWKURXJK6WHSXQWLOWKH$FWXDWRUDQGWKH0RXWKSLHFHDUHFOHDQDQGFOHDU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 6WHS/HWWKH$FWXDWRUGU\FRPSOHWHO\VXFKDVRYHUQLJKWDVVKRZQLQ)LJXUH
'R1RWSXWWKH&DQLVWHUEDFNLQWRWKH$FWXDWRULILWLVVWLOOZHW
)LJXUH

5HDVVHPEO\RIWKH,QKDOHUDQG,QVWUXFWLRQVIRU8VHDIWHU&OHDQLQJ
 $IWHUWKH$FWXDWRULVFRPSOHWHO\GU\JHQWO\SUHVVWKH&DQLVWHUGRZQLQWKH$FWXDWRUDV
VKRZQLQ)LJXUH,WLVQRWQHFHVVDU\WRSUHVVGRZQRQWKH&DQLVWHUKDUGHQRXJKWR
FDXVHDSXIIWREHUHOHDVHG
)LJXUH

 5HSULPH\RXULQKDOHUWLPHVDIWHUHDFKFOHDQLQJ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 +ROGWKH$FWXDWRUZLWKWKH0RXWKSLHFHSRLQWLQJDZD\IURP\RXDQGRWKHUVDVVKRZQLQ
)LJXUH
 6KDNHWKHLQKDOHUZHOOEHIRUHHDFKSXII
 3XVKGRZQIXOO\RQWKHFHQWHUQRWµRIIFHQWHU¶RIWKH'RVHLQGLFDWRURQWRSRIWKH
&DQLVWHUXQWLOWKH&DQLVWHUVWRSVPRYLQJLQWKH$FWXDWRUWRUHOHDVHDSXIIIURPWKH
0RXWKSLHFH
 5HSHDWWKLVUHSULPLQJVWHSPRUHWLPHIRUDWRWDORIWLPHV
 $IWHUUHSULPLQJ\RXULQKDOHUWLPHV\RXULQKDOHULVQRZUHDG\WRXVH



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
,QVWUXFWLRQVIRU8VHRI9HQWROLQ+)$,QKDOHU
7KH3DUWVRI<RXU9(172/,1+)$,QKDOHU


)LJXUH
7KHUHDUHWZRPDLQSDUWVWR\RXU9(172/,1+)$LQKDOHU
 7KHPHWDOFDQLVWHUWKDWKROGVWKHPHGLFLQHDQG
 7KHEOXHSODVWLFDFWXDWRUWKDWVSUD\VWKHPHGLFLQHIURPWKHFDQLVWHUVHH)LJXUH
D
7KHLQKDOHUDOVRKDVDFDSWKDWFRYHUVWKHPRXWKSLHFHRIWKHDFWXDWRU
E 7KHVWUDSRQWKHFDSZLOOVWD\DWWDFKHGWRWKHDFWXDWRU
F
7KHFDQLVWHUKDVDFRXQWHUWRVKRZKRZPDQ\VSUD\VRIPHGLFLQH\RXKDYHOHIW7KHQXPEHU
VKRZVWKURXJKDZLQGRZLQWKHEDFNRIWKHDFWXDWRU
7KHFRXQWHUVWDUWVDWWKHQXPEHUZLOOFRXQWGRZQE\HDFKWLPH\RXVSUD\WKHLQKDOHU7KHFRXQWHUZLOO
VWRSFRXQWLQJDW
1HYHUWU\WRFKDQJHWKHQXPEHUVRUWDNHWKHFRXQWHURIIWKHPHWDOFDQLVWHU7KHFRXQWHUFDQQRWEHUHVHW
DQGLWLVSHUPDQHQWO\DWWDFKHGWRWKHFDQLVWHU

'RQRWXVHWKHDFWXDWRUZLWKDFDQLVWHURIPHGLFLQHIURPDQ\RWKHULQKDOHU,QDGGLWLRQGRQRWXVHD
9(172/,1+)$FDQLVWHUZLWKDQDFWXDWRUIURPDQ\RWKHULQKDOHU
+RZWR8VH<RXU9(172/,1+)$
%HIRUHXVLQJ\RXU9(172/,1+)$
 7DNHWKHLQKDOHURXWRIWKHIRLOSRXFK6DIHO\WKURZDZD\WKHSRXFKDQGWKHGU\LQJSDFNHWWKDW
FRPHVLQVLGHWKHSRXFK7KHFRXQWHUVKRXOGUHDGThe inhaler should be at room temperature 
before you use it.
 &KHFNHDFKWLPHWRPDNHVXUHWKHFDQLVWHUILWVILUPO\LQWKHSODVWLFDFWXDWRU$OVRORRNLQWRWKH
PRXWKSLHFHWRPDNHVXUHWKHUHDUHQRIRUHLJQREMHFWVWKHUHHVSHFLDOO\LIWKHVWUDSLVQRORQJHU
DWWDFKHGWRWKHDFWXDWRURULIWKHFDSLVQRWEHLQJXVHGWRFRYHUWKHPRXWKSLHFH
3ULPLQJ\RXU9(172/,1+)$
x
<RXPXVWSULPHWKHLQKDOHUWRJHWWKHULJKWDPRXQWRIPHGLFLQH3ULPHWKHLQKDOHUEHIRUH\RXXVHLWIRU
WKHILUVWWLPHLI\RXKDYHQRWXVHGLWIRUPRUHWKDQGD\VRULILWKDVEHHQGURSSHG
 7RSULPHWKHLQKDOHUWDNHWKHFDSRIIWKHPRXWKSLHFHRIWKHDFWXDWRU
 7KHQVKDNHWKHLQKDOHUZHOODQGVSUD\LWLQWRWKHDLUDZD\IURP\RXUIDFH
 6KDNHDQGVSUD\WKHLQKDOHUOLNHWKLVPRUHWLPHVWRILQLVKSULPLQJLW
 7KHFRXQWHUVKRXOGQRZUHDGRULI\RXKDYHDVDPSOHRULQVWLWXWLRQDOFDQLVWHU

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
,QVWUXFWLRQVIRUWDNLQJDGRVHIURP\RXU9(172/,1+)$
5HDGWKURXJKWKHVWHSVEHORZEHIRUHXVLQJ9(172/,1+)$,I\RXKDYHDQ\TXHVWLRQVDVN\RXUVWXG\
GRFWRU
7DNHWKHFDSRIIWKHPRXWKSLHFHRIWKHDFWXDWRU6KDNHWKHLQKDOHUZHOOEHIRUHHDFKVSUD\
+ROGWKHLQKDOHUZLWKWKHPRXWKSLHFHGRZQVHH)LJXUH%UHDWKHRXWWKURXJK\RXUPRXWKDQGSXVKDV
PXFKDLUIURP\RXUOXQJVDV\RXFDQ3XWWKHPRXWKSLHFHLQ\RXUPRXWKDQGFORVH\RXUOLSVDURXQGLW
3XVKWKHWRSRIWKHFDQLVWHUDOOWKHZD\GRZQZKLOH\RXEUHDWKHLQGHHSO\DQGVORZO\WKURXJK\RXU
PRXWKVHH)LJXUH5LJKWDIWHUWKHVSUD\FRPHVRXWWDNH\RXUILQJHURIIWKHFDQLVWHU$IWHU\RXKDYH
EUHDWKHGLQDOOWKHZD\WDNHWKHLQKDOHURXWRI\RXUPRXWKDQGFORVH\RXUPRXWK







)LJXUH









)LJXUH
+ROG\RXUEUHDWKDVORQJDV\RXFDQXSWRVHFRQGVWKHQEUHDWKHQRUPDOO\
,I\RXUGRFWRUKDVSUHVFULEHGPRUHVSUD\VZDLWPLQXWHDQGVKDNHWKHLQKDOHUDJDLQ5HSHDWVWHSV
WKURXJK
3XWWKHFDSEDFNRQWKHPRXWKSLHFHDIWHUHYHU\WLPH\RXXVHWKHLQKDOHUDQGPDNHVXUHLWVQDSVILUPO\LQWR
SODFH
:KHQWR5HSODFH<RXU9(172/,1+)$
 :KHQWKHFRXQWHUUHDGV\RXVKRXOGUHILOO\RXUSUHVFULSWLRQRUDVN\RXUGRFWRULI\RXQHHGDQRWKHU
SUHVFULSWLRQIRU9(172/,1+)$
 7KURZWKHLQKDOHUDZD\ZKHQWKHFRXQWHUUHDGVRUPRQWKVDIWHU\RXKDYHWDNHQWKHLQKDOHURXWRI
WKHIRLOSRXFKZKLFKHYHUKDSSHQVILUVW<RXVKRXOGQRWNHHSXVLQJWKHLQKDOHUZKHQWKHFRXQWHUUHDGV
EHFDXVH\RXZLOOQRWUHFHLYHWKHULJKWDPRXQWRIPHGLFLQH
 'RQRWXVHWKHLQKDOHUDIWHUWKHH[SLUDWLRQGDWHZKLFKLVRQWKHSDFNDJLQJLWFRPHVLQ
+RZWR&OHDQ<RXU9(172/,1+)$
,WLVYHU\LPSRUWDQWWRNHHSWKHSODVWLFDFWXDWRUFOHDQVRWKHPHGLFLQHZLOOQRWEXLOGXSDQGEORFNWKH
VSUD\'RQRWWU\WRFOHDQWKHPHWDOFDQLVWHURUOHWLWJHWZHW7KHLQKDOHUPD\VWRSVSUD\LQJLILWLVQRW
FOHDQHGFRUUHFWO\
:DVKWKHDFWXDWRUDWOHDVWRQFHDZHHN

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
&OHDQLQJLQVWUXFWLRQV
7DNHWKHFDQLVWHURXWRIWKHDFWXDWRUDQGWDNHWKHFDSRIIWKHPRXWKSLHFH7KHVWUDSRQWKHFDSZLOOVWD\
DWWDFKHGWRWKHDFWXDWRU
:DVKWKHDFWXDWRUWKURXJKWKHWRSZLWKZDUPUXQQLQJZDWHUIRUVHFRQGVVHH)LJXUH7KHQZDVKWKH
DFWXDWRUDJDLQWKURXJKWKHPRXWKSLHFHVHH)LJXUH







)LJXUH









)LJXUH
6KDNHRIIDVPXFKZDWHUIURPWKHDFWXDWRUDV\RXFDQ/RRNLQWRWKHPRXWKSLHFHWRPDNHVXUHDQ\PHGLFLQH
EXLOGXSKDVEHHQFRPSOHWHO\ZDVKHGDZD\,IWKHUHLVDQ\EXLOGXSUHSHDWVWHS
/HWWKHDFWXDWRUDLUGU\FRPSOHWHO\VXFKDVRYHUQLJKWVHH)LJXUH


)LJXUH
:KHQWKHDFWXDWRULVGU\SXWWKHFDQLVWHULQWKHDFWXDWRUDQGPDNHVXUHLWILWVILUPO\6KDNHWKHLQKDOHUZHOO
DQGVSUD\LWRQFHLQWRWKHDLUDZD\IURP\RXUIDFH7KHFRXQWHUZLOOFRXQWGRZQE\3XWWKHFDSEDFNRQ
WKHPRXWKSLHFH
,I\RXUDFWXDWRUEHFRPHVEORFNHG
%ORFNDJHIURPPHGLFLQHEXLOGXSLVPRUHOLNHO\WRKDSSHQLI\RXGRQRWOHWWKHDFWXDWRUDLUGU\FRPSOHWHO\,I
WKHDFWXDWRUJHWVEORFNHGVRWKDWOLWWOHRUQRPHGLFLQHFRPHVRXWRIWKHPRXWKSLHFHVHH)LJXUHZDVKWKH
DFWXDWRUDVGHVFULEHGLQFOHDQLQJVWHSVWR

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

)LJXUH
,I\RXQHHGWRXVH\RXULQKDOHUEHIRUHWKHDFWXDWRULVFRPSOHWHO\GU\VKDNHDVPXFKZDWHURIIWKH
DFWXDWRUDV\RXFDQ3XWWKHFDQLVWHULQWKHDFWXDWRUDQGPDNHVXUHLWILWVILUPO\6KDNHWKHLQKDOHUZHOODQG
VSUD\LWRQFHLQWRWKHDLUDZD\IURP\RXUIDFH7KHQWDNH\RXUGRVHDVSUHVFULEHG7KHQFOHDQDQGDLUGU\LW
FRPSOHWHO\
6WRULQJ<RXU9(172/,1+)$
6WRUHDWURRPWHPSHUDWXUHZLWKWKHPRXWKSLHFHGRZQ.HHSRXWRIUHDFKRIFKLOGUHQ
&RQWHQWV8QGHU3UHVVXUH'RQRWSXQFWXUH'RQRWXVHRUVWRUHQHDUKHDWRURSHQIODPH([SRVXUHWR
WHPSHUDWXUHVDERYH)PD\FDXVHEXUVWLQJ1HYHUWKURZLQWRILUHRULQFLQHUDWRU















%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
&23'$VVHVVPHQW7HVW&$7
7KHVDPSOHSURYLGHGKHUHLVIRULOOXVWUDWLYHSXUSRVHVRQO\





%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
%',7',4XHVWLRQQDLUH
(The sample provided here is for illustrative purposes only) 




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI





%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
6W*HRUJH5HVSLUDWRU\4XHVWLRQQDLUH6*54
(The sample provided here is for illustrative purposes only) 

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI




%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
(XUR4R/'LPHQVLRQV(4'4XHVWLRQQDLUH


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
([DFHUEDWLRQVRI&KURQLF2EVWUXFWLYH3XOPRQDU\
'LVHDVH(;$&7



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI



%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI









%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
5XOHVIRU(YDOXDWLRQRI$EQRUPDO/LYHU/DERUDWRU\
9DOXHV
,1752'8&7,21
'XULQJWKHFRXUVHRIWKHVWXG\WKH,QYHVWLJDWRUZLOOUHPDLQYLJLODQWIRULQFUHDVHVLQOLYHU
ELRFKHPLVWU\7KH,QYHVWLJDWRULVUHVSRQVLEOHIRUGHWHUPLQLQJZKHWKHUDVXEMHFWPHHWV
SRWHQWLDO+\¶V/DZ3+/FULWHULDDWDQ\SRLQWGXULQJWKHVWXG\
7KH,QYHVWLJDWRUSDUWLFLSDWHVWRJHWKHUZLWKWKH6SRQVRUFOLQLFDOUHSUHVHQWDWLYHVLQUHYLHZ
DQGDVVHVVPHQWRIFDVHVPHHWLQJ3+/FULWHULDWRDJUHHZKHWKHU+\¶V/DZ+/FULWHULDDUH
PHW+\¶V/DZFULWHULDDUHPHWLIWKHUHLVQRDOWHUQDWLYHH[SODQDWLRQIRUWKHHOHYDWLRQVLQOLYHU
ELRFKHPLVWU\RWKHUWKDQ'UXJ,QGXFHG/LYHU,QMXU\',/,FDXVHGE\VWXG\GUXJ
7KH,QYHVWLJDWRULVUHVSRQVLEOHIRUUHFRUGLQJGDWDSHUWDLQLQJWR3+/+/FDVHVDQGIRU
UHSRUWLQJ$(VDQG6$(VDFFRUGLQJWRWKHRXWFRPHRIWKHUHYLHZDQGDVVHVVPHQWLQOLQHZLWK
VWDQGDUGVDIHW\UHSRUWLQJSURFHVVHV
'(),1,7,216
3RWHQWLDO+\¶V/DZ
7KHOHYHOVRI$67RU$/7[8/1ZLWK7%/[8/1DWDQ\SRLQWGXULQJWKHVWXG\
LUUHVSHFWLYHRIDQLQFUHDVHLQ$/37KHHOHYDWLRQVGRQRWKDYHWRRFFXUDWWKHVDPHWLPHRU
ZLWKLQDVSHFLILHGWLPHIUDPH
+\¶V/DZ
7KHOHYHOVRI$67RU$/7[8/1ZLWK7%/[8/1ZKHUHQRRWKHUUHDVRQRWKHUWKDQ
WKHVWXG\GUXJFDQEHIRXQGWRH[SODLQWKHFRPELQDWLRQRILQFUHDVHVHJHOHYDWHG$/3
LQGLFDWLQJFKROHVWDVLVYLUDOKHSDWLWLVRUDQRWKHUGUXJ7KHHOHYDWLRQVGRQRWKDYHWRRFFXUDW
WKHVDPHWLPHRUZLWKLQDVSHFLILHGWLPHIUDPH
,'(17,),&$7,212)327(17,$/+<¶6/$:&$6(6
,QRUGHUWRLGHQWLI\FDVHVRI3+/LWLVLPSRUWDQWWRSHUIRUPDFRPSUHKHQVLYHUHYLHZRI
ODERUDWRU\GDWDIRUDQ\VXEMHFWZKRPHHWVDQ\RIWKHIROORZLQJLGHQWLILFDWLRQFULWHULDLQ
LVRODWLRQRULQFRPELQDWLRQ
 $/7[8/1
 $67[8/1
 7%/[8/1

:KHQDVXEMHFWPHHWVDQ\RIWKHLGHQWLILFDWLRQFULWHULDLQFRPELQDWLRQWKHFHQWUDOODERUDWRU\
ZLOOLPPHGLDWHO\VHQGDQDOHUWWRWKH,QYHVWLJDWRUDQGWKH6SRQVRUUHSUHVHQWDWLYH
7KH,QYHVWLJDWRUZLOODOVRUHPDLQYLJLODQWIRUDQ\ODERUDWRU\UHSRUWVZKHUHWKHLGHQWLILFDWLRQ
FULWHULDDUHPHWWKH,QYHVWLJDWRUZLOO

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 5HTXHVWDUHSHDWRIWKHWHVWQHZEORRGGUDZE\WKHFHQWUDOODERUDWRU\

:KHQWKHLGHQWLILFDWLRQFULWHULDDUHPHWIURPFHQWUDOODERUDWRU\UHVXOWVWKH,QYHVWLJDWRUZLOO
ZLWKRXWGHOD\
 'HWHUPLQHZKHWKHUWKHVXEMHFWPHHWV3+/FULWHULDE\UHYLHZLQJDOOODERUDWRU\UHSRUWV
LQFOXGLQJSUHYLRXVYLVLWV
 1RWLI\WKH6SRQVRUUHSUHVHQWDWLYH
)2//2:83
3RWHQWLDO+\¶V/DZ&ULWHULDQRWPHW
,IWKHVXEMHFWGRHVQRWPHHW3+/FULWHULDWKH,QYHVWLJDWRUZLOO
 ,QIRUPWKH6SRQVRUUHSUHVHQWDWLYHWKDWWKHVXEMHFWKDVQRWPHW3+/FULWHULD
 3HUIRUPIROORZXSRQVXEVHTXHQWODERUDWRU\UHVXOWVDFFRUGLQJWRWKHJXLGDQFHSURYLGHGLQ
WKH&OLQLFDO6WXG\3URWRFRO

3RWHQWLDO+\¶V/DZ&ULWHULDPHW
,IWKHVXEMHFWGRHVPHHW3+/FULWHULDWKH,QYHVWLJDWRUZLOO
 1RWLI\WKH6SRQVRUUHSUHVHQWDWLYHZKRZLOOWKHQLQIRUPWKHFHQWUDO6WXG\7HDP

7KH0HGLFDO0RQLWRUFRQWDFWVWKH,QYHVWLJDWRUWRSURYLGHJXLGDQFHGLVFXVVDQGDJUHHRQ
PHWKRGRIIROORZXSDQGWKHFRQWLQXRXVUHYLHZRIGDWD6XEVHTXHQWWRWKLVFRQWDFWWKH
,QYHVWLJDWRUZLOO
 0RQLWRUWKHVXEMHFWXQWLOOLYHUELRFKHPLVWU\SDUDPHWHUVDQGDSSURSULDWHFOLQLFDO
V\PSWRPVDQGVLJQVUHWXUQWRQRUPDORUEDVHOLQHOHYHOVRUDVORQJDVPHGLFDOO\LQGLFDWHG
 ,QYHVWLJDWHWKHHWLRORJ\RIWKHHYHQWDQGSHUIRUPGLDJQRVWLFLQYHVWLJDWLRQVDVGLVFXVVHG
ZLWKWKH6SRQVRU0HGLFDO0RQLWRU
 ,IDWDQ\WLPHLQFRQVXOWDWLRQZLWKWKH6SRQVRU0HGLFDO0RQLWRUWKH3+/FDVHPHHWV
VHULRXVFULWHULDUHSRUWWKHHYHQWDVDQ6$(XVLQJVWDQGDUGUHSRUWLQJSURFHGXUHV

5(9,(:$1'$66(660(172)327(17,$/+<¶6/$:&$6(6
7KHLQVWUXFWLRQVLQWKLVVHFWLRQVKRXOGEHIROORZHGIRUDOOFDVHVZKHUH3+/FULWHULDDUHPHW
1RODWHUWKDQZHHNVDIWHUWKHELRFKHPLVWU\DEQRUPDOLW\ZDVLQLWLDOO\GHWHFWHGWKH6SRQVRU
0HGLFDO0RQLWRUFRQWDFWVWKH,QYHVWLJDWRULQRUGHUWRUHYLHZDYDLODEOHGDWDDQGDJUHHRQ
ZKHWKHUWKHUHLVDQDOWHUQDWLYHH[SODQDWLRQIRUPHHWLQJ3+/FULWHULDRWKHUWKDQ',/,FDXVHG
E\WKHVWXG\GUXJ7KH6SRQVRU0HGLFDO0RQLWRUDQGRWKHUVXEMHFWPDWWHUH[SHUWVDV
DSSURSULDWHZLOOFROODERUDWHLQWKHUHYLHZDQGDVVHVVPHQWRIWKHVHFDVHV
$FFRUGLQJWRWKHRXWFRPHRIWKHUHYLHZDQGDVVHVVPHQWWKH,QYHVWLJDWRUZLOOIROORZWKH
LQVWUXFWLRQVEHORZ

%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
,IWKHUHLVDQDJUHHGDOWHUQDWLYHH[SODQDWLRQIRUWKH$/7RU$67DQG7%/HOHYDWLRQVD
GHWHUPLQDWLRQRIZKHWKHUWKHDOWHUQDWLYHH[SODQDWLRQLVDQ$(ZLOOEHPDGHDQGVXEVHTXHQWO\
ZKHWKHUWKH$(PHHWVWKHFULWHULDIRUDQ6$(
 ,IWKHDOWHUQDWLYHH[SODQDWLRQLVDQ$(6$(UHFRUGWKH$(6$(LQWKHH&5)DFFRUGLQJ
WRWKH6SRQVRU¶VVWDQGDUGUHSRUWLQJSURFHGXUHV
 ,IWKHDOWHUQDWLYHH[SODQDWLRQLVQRWDQ$(UHFRUGWKHDOWHUQDWLYHH[SODQDWLRQRQWKH
FRPPHQWIRUPZLWKLQWKHH&5)
,ILWLVDJUHHGWKDWWKHUHLVQRH[SODQDWLRQWKDWZRXOGH[SODLQWKH$/7RU$67DQG7%/
HOHYDWLRQVRWKHUWKDQWKHVWXG\GUXJ
 5HSRUWDVDQ6$(UHSRUWWHUP³+\¶V/DZFDVH´DFFRUGLQJWR6SRQVRUVWDQGDUG
SURFHVVHV
o 7KH³0HGLFDOO\,PSRUWDQW´VHULRXVFULWHULRQVKRXOGEHXVHGLIQRRWKHUVHULRXVFULWHULD
DSSO\
o $VWKHUHLVQRDOWHUQDWLYHH[SODQDWLRQIRUWKH+/FDVHDFDXVDOLW\DVVHVVPHQWRI
³UHODWHG´VKRXOGEHDVVLJQHG
,IWKHUHLVDQXQDYRLGDEOHGHOD\RIRYHUZHHNVLQREWDLQLQJWKHLQIRUPDWLRQQHFHVVDU\WR
DVVHVVZKHWKHURUQRWWKHFDVHPHHWVWKHFULWHULDIRU+/WKHQLWLVDVVXPHGWKDWWKHUHLVQR
DOWHUQDWLYHH[SODQDWLRQ8QWLODQLQIRUPHGGHFLVLRQFDQEHPDGHWKHIROORZLQJSURFHGXUH
VKRXOGEHIROORZHG
 5HSRUWDVDQ6$(UHSRUWWHUP³3RWHQWLDO+\¶V/DZ´DSSO\LQJVHULRXVFULWHULDDQG
FDXVDOLW\DVVHVVPHQWDVSHUDERYH
&RQWLQXHIROORZXSDQGUHYLHZDFFRUGLQJWRWKHDJUHHGSODQ2QFHWKHQHFHVVDU\
VXSSOHPHQWDU\LQIRUPDWLRQLVREWDLQHGUHSHDWWKHUHYLHZDQGDVVHVVPHQWWRGHWHUPLQH
ZKHWKHU+/FULWHULDDUHPHW8SGDWHWKH6$(5HSRUW)RUPDFFRUGLQJWRWKHRXWFRPHRIWKH
UHYLHZ


%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
'RVH,QGLFDWRU5HDGLQJ
)RUWKHSXUSRVHVRIWKLVVWXG\ZKHQUHFRUGLQJWKHGRVHLQGLFDWRUGLVSOD\YDOXHUHYLHZWKH
LQGLFDWRUGLVSOD\DWWKHWRSRIWKH0',DQGUHFRUGWKHQXPEHURILQKDODWLRQVUHPDLQLQJWKDW
PDWFKHVWKHFKDUWEHORZ

&RXQW$FWXDWLRQ9HUVLRQ6KRZQ


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG



,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG



,I\RXUGRVH
LQGLFDWRUGLVSOD\
ORRNVOLNHWKLV
UHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG



,I\RXUGRVH
LQGLFDWRU GLVSOD\
ORRNVOLNHWKLV
UHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG

,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG


,I\RXUGRVH
LQGLFDWRU
GLVSOD\ORRNV
OLNHWKLVUHFRUG





%XGHVRQLGHDQG)RUPRWHURO)XPDUDWH,QKDODWLRQ$HURVRO
3HDUO7KHUDSHXWLFV
&OLQLFDO7ULDO3URWRFRO37

9HUVLRQ-DQXDU\

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
,QYHVWLJDWRU¶V$JUHHPHQWDQG6LJQDWXUH3DJH
6WXG\7LWOH
$5DQGRPL]HG'RXEOH%OLQG3DUDOOHO*URXS0XOWL&HQWHU6WXG\WR$VVHVVWKH
(IILFDF\DQG6DIHW\RI37FRPSDUHGWR37LQ6XEMHFWV:LWK0RGHUDWHWR9HU\
6HYHUH&23'
6WXG\1XPEHU
37
)LQDO'DWH
-DQXDU\
,DJUHH
 7RDVVXPHUHVSRQVLELOLW\IRUWKHSURSHUFRQGXFWRIWKHVWXG\DWWKLVVLWH
 7RFRQGXFWWKHVWXG\LQFRPSOLDQFHZLWKWKHSURWRFRODQGZLWKDQ\RWKHUVWXG\FRQGXFWSURFHGXUHV
SURYLGHGE\3HDUO7KHUDSHXWLFV,QFKHUHDIWHUUHIHUUHGWRDV3HDUO
 1RWWRLPSOHPHQWDQ\FKDQJHVWRWKHSURWRFROZLWKRXWDJUHHPHQWIURPWKH6SRQVRUDQGSULRUUHYLHZDQG
ZULWWHQDSSURYDOIURPWKH,5%,(&H[FHSWZKHUHQHFHVVDU\WRHOLPLQDWHDQLPPHGLDWHKD]DUGWRWKH
VXEMHFWVRUIRUDGPLQLVWUDWLYHDVSHFWVRIWKHVWXG\ZKHUHSHUPLWWHGE\DOODSSOLFDEOHUHJXODWRU\
UHTXLUHPHQWV
 7KDW,DPDZDUHRIDQGZLOOIXOO\FRPSO\ZLWK*&3DQGDOODSSOLFDEOHUHJXODWRU\UHTXLUHPHQWV
 7KDW,DPWKRURXJKO\IDPLOLDUZLWKWKHDSSURSULDWHXVHRIWKHLQYHVWLJDWLRQDOSURGXFWVDQGRWKHU
LQIRUPDWLRQSURYLGHGE\3HDUOLQFOXGLQJEXWQRWOLPLWHGWRWKHIROORZLQJWKHSURWRFRODQGWKHFXUUHQW
,QYHVWLJDWRU¶V%URFKXUH,%
 7RHQVXUHWKDWDOOSHUVRQVDVVLVWLQJPHZLWKWKHVWXG\DUHTXDOLILHGDGHTXDWHO\LQIRUPHGDERXWWKH
LQYHVWLJDWLRQDOSURGXFWVDQGRIWKHLUVWXG\UHODWHGGXWLHVDQGIXQFWLRQV
 7RVXSSO\3HDUOZLWKDQ\QHFHVVDU\LQIRUPDWLRQUHJDUGLQJRZQHUVKLSLQWHUHVWDQGILQDQFLDOWLHVWRSURPSWO\
XSGDWHWKLVLQIRUPDWLRQLIDQ\UHOHYDQWFKDQJHVRFFXUGXULQJWKHFRXUVHRIWKHVWXG\DQGIRU\HDU
IROORZLQJFRPSOHWLRQRIWKHVWXG\DQGDJUHHWKDW3HDUOPD\GLVFORVHDQ\LQIRUPDWLRQLWKDVDERXWVXFK
RZQHUVKLSLQWHUHVWVDQGILQDQFLDOWLHVWRUHJXODWRU\DXWKRULWLHV
 ,DJUHHWRUHSRUWDOOLQIRUPDWLRQRUGDWDLQDFFRUGDQFHZLWKWKHSURWRFRODQGDQ\RWKHUVWXG\FRQGXFW
SURFHGXUHVSURYLGHGE\3HDUO
 7KDWVLQFHWKHLQIRUPDWLRQLQWKLVSURWRFRODQG,%LVFRQILGHQWLDO,XQGHUVWDQGWKDWLWVGLVFORVXUHWRDQ\
WKLUGSDUWLHVRWKHUWKDQWKRVHLQYROYHGLQDSSURYDOVXSHUYLVLRQRUFRQGXFWRIWKHVWXG\LVSURKLELWHG
 7RDFFXUDWHO\WUDQVIHUDOOUHTXLUHGGDWDIURPHDFKVXEMHFW¶VVRXUFHGRFXPHQWWRWKH&5)V7KH&5)VZLOO
EHSURYLGHGWRWKH6SRQVRULQDWLPHO\PDQQHUDWWKHFRPSOHWLRQRIWKHVWXG\RUDVRWKHUZLVHVSHFLILHGE\
WKH6SRQVRU
 7RDOORZDXWKRUL]HGUHSUHVHQWDWLYHVRI3HDUORUUHJXODWRU\DXWKRULW\UHSUHVHQWDWLYHVWRFRQGXFWRQVLWHYLVLWV
WRUHYLHZDXGLWDQGFRS\VWXG\GRFXPHQWV,ZLOOSHUVRQDOO\PHHWZLWKWKHVHUHSUHVHQWDWLYHVWRDQVZHUDQ\
VWXG\UHODWHGTXHVWLRQV

6LJQDWXUH


'DWH


1DPH 












$IILOLDWLRQ 










