Clinical trial NCT03419897
Conditions: Hepatocellular Carcinoma (HCC)
Keywords: Advanced liver cancer RATIONALE-208
Sponsor: BeiGene
Start date: 2018-04-09; Completion date: 2022-07-06
Enrollment: 249 participants; Allocation: NA; Intervention model: SINGLE_GROUP

Brief summary:
This study investigated the efficacy, safety, and pharmacokinetics of the anti-PD-1 monoclonal antibody BGB-A317 in participants with previously treated hepatocellular unresectable carcinoma.

Detailed description:

Arms: arm 1: 200 milligrams once every 3 weeks
Interventions: intervention 1: Tislelizumab
Intervention descriptions: intervention 1: Administered intravenously

Protocol documents:
Prot_000.pdf: 
%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI


&/,1,&$/678'<35272&2/

3URWRFRO7LWOH
$3KDVH2SHQODEHO0XOWLFHQWHU6WXG\WR,QYHVWLJDWHWKH(IILFDF\
6DIHW\DQG3KDUPDFRNLQHWLFVRIWKH$QWL3'0RQRFORQDO$QWLERG\
%*%$LQ3DWLHQWVZLWK3UHYLRXVO\7UHDWHG+HSDWRFHOOXODU
8QUHVHFWDEOH&DUFLQRPD
3URWRFRO,GHQWLILHU
%*%$
3KDVH


,QYHVWLJDWLRQDO3URGXFW
7LVOHOL]XPDE%*%$
,QGLFDWLRQ
3UHYLRXVO\7UHDWHG8QUHVHFWDEOH+HSDWRFHOOXODU&DUFLQRPD
5HIHUHQFH1XPEHU
(XGUD&7
6SRQVRU
%HL*HQH/WG
FR%HL*HQH86$,QF
3RZHOO6WUHHW6XLWH
(PHU\YLOOH&$
86$
6SRQVRU0HGLFDO0RQLWRU

3RZHOO6WUHHW6XLWH
(PHU\YLOOH&$86$
3KRQHQXPEHU

(PDLO






&KLQD
3KRQHQXPEHU

(PDLO

2ULJLQDO3URWRFRO
6HSWHPEHU
$PHQGPHQW
$PHQGPHQW
1RYHPEHU
-XQH
&RQILGHQWLDOLW\6WDWHPHQW
7KLVFRQILGHQWLDOLQIRUPDWLRQLQWKLVGRFXPHQWLVSURYLGHGWR\RXDVDQLQYHVWLJDWRURUFRQVXOWDQWIRUUHYLHZ
E\\RX\RXUVWDIIDQGWKHDSSOLFDEOH,QVWLWXWLRQDO5HYLHZ%RDUG,QGHSHQGHQW(WKLFV&RPPLWWHH<RXU
DFFHSWDQFHRIWKLVGRFXPHQWFRQVWLWXWHVDJUHHPHQWWKDW\RXZLOOQRWGLVFORVHWKHLQIRUPDWLRQFRQWDLQHG
KHUHLQWRRWKHUVZLWKRXWZULWWHQDXWKRUL]DWLRQIURPWKHVSRQVRU




%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
,19(67,*$7256,*1$785(3$*(

3URWRFRO7LWOH
$3KDVH2SHQODEHO0XOWLFHQWHU6WXG\WR,QYHVWLJDWHWKH(IILFDF\6DIHW\
DQG3KDUPDFRNLQHWLFVRIWKH$QWL3'0RQRFORQDO$QWLERG\%*%$LQ
3DWLHQWVZLWK3UHYLRXVO\7UHDWHG+HSDWRFHOOXODU8QUHVHFWDEOH&DUFLQRPD

3URWRFRO,GHQWLILHU


%*%$

7KLVSURWRFROLVDFRQILGHQWLDOFRPPXQLFDWLRQRI%HL*HQH/WGDQGLWVVXEVLGLDULHV,FRQILUPWKDW,KDYH
UHDGWKLVSURWRFRO,XQGHUVWDQGLWDQG,ZLOOZRUNDFFRUGLQJWRWKLVSURWRFRO,ZLOODOVRZRUNFRQVLVWHQWO\
ZLWKWKHHWKLFDOSULQFLSOHVWKDWKDYHWKHLURULJLQLQWKH'HFODUDWLRQRI+HOVLQNLDQGWKDWDUHFRQVLVWHQWZLWK
JRRGFOLQLFDOSUDFWLFHVDQGWKHDSSOLFDEOHODZVDQGUHJXODWLRQV$FFHSWDQFHRIWKLVGRFXPHQWFRQVWLWXWHVP\
DJUHHPHQWWKDWQRXQSXEOLVKHGLQIRUPDWLRQFRQWDLQHGKHUHLQZLOOEHSXEOLVKHGRUGLVFORVHGZLWKRXWSULRU
ZULWWHQDSSURYDOIURP%HL*HQH/WGRURQHRILWVVXEVLGLDULHV

,QVWUXFWLRQVIRU,QYHVWLJDWRU3OHDVH6,*1DQG'$7(WKLVVLJQDWXUHSDJH35,17\RXUQDPH
WLWOHDQGWKHQDPHRIWKHFHQWHULQZKLFKWKHVWXG\ZLOOEHFRQGXFWHG5HWXUQWKHVLJQHGFRS\WR
%HL*HQHRULWVGHVLJQHH

,KDYHUHDGWKLVSURWRFROLQLWVHQWLUHW\DQGDJUHHWRFRQGXFWWKHVWXG\DFFRUGLQJO\

6LJQDWXUHRI,QYHVWLJDWRU


BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBB
3ULQWHG1DPH 




BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,QYHVWLJDWRU7LWOH 



BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1DPH$GGUHVVRI&HQWHU


BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB









BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB









BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB









BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
35272&2/$0(1'0(17-81(
7KHSULPDU\SXUSRVHRIWKLVDPHQGPHQWLVWRLQFRUSRUDWHIHHGEDFNIURPWKH)RRGDQG'UXJ$GPLQLVWUDWLRQ
)'$DQGWKH+HDOWK$XWKRULWLHVRI*HUPDQ\DQG)UDQFH$GGLWLRQVDUHLQEROGWH[WDQGGHOHWLRQVDUH
GHVLJQDWHGE\VWULNHWKURXJKWH[W
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH
7LWOH3DJH
6\QRSVLV
6HFWLRQ
,QWURGXFHGXVHRI³7LVOHOL]XPDE´DVJHQHULFQDPHRI%*%$
E\FKDQJLQJ%*%$WR7LVOHOL]XPDE%*%$RQWKH
WLWOHSDJHDWILUVWXVHLQWKHV\QRSVLV,QYHVWLJDWLRQDO3URGXFW
DQGILUVWXVHLQWKHERG\RIWKHDPHQGPHQW6HFWLRQ
7RDOLJQZLWKWKHFXUUHQW%HL*HQH
SURWRFROWHPSODWH
6\QRSVLV
8SGDWHGWKHSUHYLRXVO\DSSUR[LPDWHGQXPEHURISDUWLFLSDWLQJ
VWXG\FHQWHUVIURP³´FHQWHUVLQWHUQDWLRQDOO\WR³´
7RDGGUHVVLQFUHDVHLQJOREDOVLWH
VHOHFWLRQWRPHHWHQUROOPHQWWDUJHW
QHHG
6SRQVRU0HGLFDO0RQLWRUFRQWDFWLQIRUPDWLRQXSGDWHG


&KDQJHLQ0HGLFDO0RQLWRU
6\QRSVLV
6HFWLRQ
$GGHG³RUDFFHSWDEOHDJHDFFRUGLQJWRORFDOUHJXODWLRQV´WR
DJHUHTXLUHPHQWLQWH[WRIWKHV\QRSVLVDQGWRLQFOXVLRQFULWHULD

7RDFFRPPRGDWHFRXQWU\VSHFLILF
UHJXODWLRQV
6\QRSVLV
6HFWLRQ
5HYLVHGWH[W(IILFDF\(YDOXDEOH3RSXODWLRQ())LQFOXGHVDOO
SDWLHQWVLQWKH6$)ZLWKPHDVXUDEOHGLVHDVHDWEDVHOLQHSHU
5(&,67ZKRKDGDWOHDVWRQHHYDOXDEOHSRVWEDVHOLQHWXPRU
DVVHVVPHQWXQOHVVGLVFRQWLQXHGGXHWRFOLQLFDOGLVHDVH
SURJUHVVLRQRUGHDWKZLWKLQZHHNVZHHNVRIWKHILUVWGRVH
GDWH
7RDOLJQZLWKFXUUHQWLPDJLQJ
VFKHGXOHZHHNVGD\VGXULQJ
WKHILUVWZHHNV
6\QRSVLV
6HFWLRQ
$GGHGWH[W,QFDVHRIVLJQLILFDQWHQUROOPHQWGHOD\LQWKH
VHFRQGOLQHRUWKLUGOLQHRUPRUHSRSXODWLRQDVXE
SRSXODWLRQIRFXVHGDQDO\VLVPD\EHSHUIRUPHGRQFHDJLYHQ
SRSXODWLRQKDVUHDFKHGLWVHQUROOPHQWWDUJHW
7RDOORZWKHSRVVLELOLW\RIIRFXVHG
DQDO\VHVLIGHHPHGQHFHVVDU\DQG
DSSURSULDWH
6\QRSVLV
6HFWLRQ
$GGHGWH[W7UHDWPHQWHPHUJHQW$(VDOVRLQFOXGHDOOLU$(VDQG
UHODWHGVHULRXV$(VUHFRUGHGXSWRGD\VDIWHUWKHODVWGRVHRI
%*%$UHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZ
DQWLFDQFHUWKHUDS\
&ODULILFDWLRQWH[W
6\QRSVLV
6HFWLRQ
5HYLVHGVDPSOHVL]HFRQVLGHUDWLRQVE\DGGLQJWH[W:LWKLQQG
OLQHRUUGOLQHSOXVSDWLHQWVWKH&,RIWKHVDPH255LV
ZKHQQ LQHDFKSRSXODWLRQ
7RSURYLGHDGGLWLRQDOVWDWLVWLFDO
LQIRUPDWLRQIRUFODULILFDWLRQDVSHU
DJUHHPHQWZLWK)'$IHHGEDFN
6HFWLRQ
3URYLGHGFODULILFDWLRQWR6XUYLYDO)ROORZXS3HULRGE\DGGLQJ
WH[W3DWLHQWVZLOOEHIROORZHGIRUVXUYLYDODQGIXUWKHU
DQWLFDQFHUWKHUDS\LQIRUPDWLRQDIWHUGLVFRQWLQXDWLRQRI
VWXG\WUHDWPHQWYLDWHOHSKRQHFDOOVSDWLHQWPHGLFDOUHFRUGV
DQGRUFOLQLFYLVLWVDSSUR[LPDWHO\HYHU\PRQWKVGD\V
DIWHUWKH6DIHW\)ROORZXSYLVLWRUDVGLUHFWHGE\WKHVSRQVRU
XQWLOGHDWKORVVWRIROORZXSZLWKGUDZDORIFRQVHQWRUVWXG\
WHUPLQDWLRQE\WKHVSRQVRUZKLFKHYHURFFXUVILUVW
7RDOLJQZLWKFXUUHQW%HL*HQH
3URWRFROWHPSODWH
6HFWLRQ
5HYLVHGWH[WWR,QFOXVLRQ&ULWHULD3DWLHQWVUHFHLYLQJDQWLYLUDOV
DW6FUHHQLQJVKRXOGKDYHEHHQWUHDWHGIRU!ZHHNVSULRUWR
HQUROOPHQWDQGVKRXOGFRQWLQXHWUHDWPHQWRQVWXG\IRUPRQWKV
DIWHUVWXG\GUXJWUHDWPHQWGLVFRQWLQXHV
8SGDWHGWRLQFRUSRUDWH)'$¶V
UHTXHVWWRLPSOHPHQWPHDVXUHVWR
IXUWKHUGHFUHDVHWKHSRWHQWLDOIRU
YLUDOUHDFWLYDWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH
6HFWLRQ
5HYLVHGWH[WLQLQFOXVLRQFULWHULDD$EVROXWHQHXWURSKLOFRXQW
$1&PFOSODWHOHWVPFOKHPRJORELQJ/
RUPPRO/
&RUUHFWLRQRIFRQYHUVLRQIURPJ/
WRPPRO/
6HFWLRQ
6HFWLRQ
&ODULILFDWLRQWRLQFOXVLRQFULWHULDE(VWLPDWHGJORPHUXODU
ILOWUDWLRQUDWHH*)5P/PLQPE\&KURQLF.LGQH\
'LVHDVH(SLGHPLRORJ\&ROODERUDWLRQHTXDWLRQ
7RFRUUHFWLQFRQVLVWHQF\ZLWK
$SSHQGL[&KURQLF.LGQH\'LVHDVH
(SLGHPLRORJ\&.'(3,(TXDWLRQ
DQGLQFRUSRUDWH*HUPDQ+HDOWK
$XWKRULW\IHHGEDFN
$GGHGWH[W3DWLHQWVZLWKPRGHUDWHUHQDOG\VIXQFWLRQHVWLPDWHG
JORPHUXODUILOWUDWLRQUDWH!P/PLQPDQG
P/PLQPE\&KURQLF.LGQH\'LVHDVH(SLGHPLRORJ\
&ROODERUDWLRQHTXDWLRQPD\EHHQUROOHGLQWRWKHVWXG\
6HFWLRQ
5HYLVHGWH[W%*%$ZLOOEHDGPLQLVWHUHGE\,9LQIXVLRQ
SUHIHUDEO\XVLQJDYROXPHWULFSXPSWKURXJKDQ,9OLQH
FRQWDLQLQJDVWHULOHQRQS\URJHQLFORZSURWHLQELQGLQJILOWHU
8VHRIDYROXPHWULFSXPSLV
UHFRPPHQGHGKRZHYHUDOWHUQDWLYH
PHWKRGVLQDFFRUGDQFHZLWK
LQVWLWXWLRQDOSURFHGXUHVDUHDOVR
SHUPLWWHG
6HFWLRQ
$GGHGFODULILFDWLRQWH[W$Q\RYHUGRVHGHILQHGDVPJRI
%*%$LQDKRXUSHULRGRULQFRUUHFWDGPLQLVWUDWLRQRI
VWXG\GUXJVKRXOGEHQRWHGRQWKHVWXG\GUXJDGPLQLVWUDWLRQ
HOHFWURQLFFDVHUHSRUWIRUPH&5)
7RSURYLGHFODULILFDWLRQWRUHSRUWLQJ
RIVWXG\WUHDWPHQWRYHUGRVHDQG
DOLJQZLWKGHILQLWLRQIRURYHUGRVHRI
VWXG\WUHDWPHQWLQFXUUHQW%HL*HQH
SURWRFROWHPSODWH
5HYLVHGWH[W,I$Q\6$(VDVVRFLDWHGZLWKDQRYHUGRVHRU
LQFRUUHFWDGPLQLVWUDWLRQRIVWXG\WUHDWPHQWWDNHVSODFHWKH
VSRQVRULVDUHUHTXLUHGWREHLPPHGLDWHO\QRWLILHGUHSRUWHG
ZLWKLQKRXUVRIDZDUHQHVVYLD6$(UHSRUWLQJSURFHVVDV
GHVFULEHGLQ6HFWLRQ6XSSRUWLYHFDUHPHDVXUHVVKRXOGEH
DGPLQLVWHUHGDVDSSURSULDWH
6HFWLRQ
3URYLGHGFODULILFDWLRQWH[W3DWLHQWVZLWKDFWLYHKHSDWLWLV%
GHILQHGDVHLWKHUGHWHFWDEOH+%V$JRU+%9'1$DWEDVHOLQH
PXVWLQLWLDWHWUHDWPHQWZHHNVSULRUWRILUVWGRVHDQG
FRQWLQXHXQWLOPRQWKVDIWHUWKHODVWGRVH3DWLHQWVVKRXOGRU
FRQWLQXHHIIHFWLYHDQWLYLUDOWUHDWPHQWGXULQJWKHVWXG\WR
GHFUHDVHSRWHQWLDOYLUDOUHDFWLYDWLRQULVN
8SGDWHGWRLQFRUSRUDWH)'$¶V
UHTXHVWWRLPSOHPHQWPHDVXUHVWR
IXUWKHUGHFUHDVHWKHSRWHQWLDOIRU
YLUDOUHDFWLYDWLRQ
5HYLVHGWH[W0DQDJHPHQWRIDQWLYLUDOWKHUDS\LVDWWKH
GLVFUHWLRQRIWKHLQYHVWLJDWRUKRZHYHUUHDVRQVPXVWEH
SURYLGHGLQWKH&5)LIDSDWLHQWZLWKDFWLYHKHSDWLWLV%LVQRW
WUHDWHGZLWKDQWLYLUDOSURSK\OD[LV
%HL*HQHGRHVQRWUHTXLUHSDWLHQWVZLWKDFWLYHKHSDWLWLV&PD\
XQGHUJRWRUHFHLYHWUHDWPHQWZLWKDQWLYLUDOWKHUDS\3DWLHQWV
ZLWKGHWHFWDEOH+&951$DQGZKRDUHUHFHLYLQJWUHDWPHQW
DWVFUHHQLQJVKRXOGUHPDLQRQFRQWLQXRXVHIIHFWLYHDQWLYLUDO
WKHUDS\GXULQJWKHVWXG\,QYHVWLJDWRUVFDQFRQVLGHU
WUHDWPHQWZLWKVRIRVEXYLUDORQHRULQFRPELQDWLRQZLWKRWKHU
DQWLYLUDOVIROORZLQJWKH$$6/'JXLGHOLQH
KWWSVZZZ KFYJXLGHOLQHVRUJRUWKHORFDOJXLGHOLQHVDV
DSSURSULDWH+RZHYHULQWHUIHURQEDVHGWKHUDS\IRUHLWKHU+%9
RU+&9LVQRWSHUPLWWHGRQVWXG\3DWLHQWVZKRDUHJLYHQ
DQWLYLUDOWKHUDS\PXVWLQLWLDWHWUHDWPHQWDWOHDVWZHHNV
SULRUWRILUVWGRVH
5HYLVHG+%9+&9ODQJXDJHWR
DOLJQSHURWKHU%HL*HQHSURWRFROV
DQGWRLQFRUSRUDWH)'$¶VUHTXHVWWR
LPSOHPHQWPHDVXUHVWRIXUWKHU
GHFUHDVHWKHSRWHQWLDOIRUYLUDO
UHDFWLYDWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH
6HFWLRQ
$GGHGWH[W3DOOLDWLYHOLPLWHGILHOGUDGLDWLRQWKHUDS\VKRXOG
QRWKDYHEHHQDGPLQLVWHUHGZLWKLQZHHNVEHIRUH
HQUROOPHQW
&ODULILFDWLRQWH[WWRLQGLFDWHWKDW
ZHHNZDVKRXWSHULRGVKRXOGDOVREH
REVHUYHGIRUSULRUSDOOLDWLYH
UDGLDWLRQWKHUDS\
$GGHGWH[W7KHFDVHLVGLVFXVVHGZLWKVSRQVRUPHGLFDOPRQLWRU
WRHQVXUHVWXG\FRPSOLDQFHDQGVSRQVRUPHGLFDOPRQLWRU
DJUHHVWKDWWKHFRQGLWLRQVUHTXLUHGWRUHFHLYHSDOOLDWLYHUDGLDWLRQ
DUHPHW
&ODULILFDWLRQWH[WWRDGGUHVV*HUPDQ
$XWKRULW\IHHGEDFNDQGWRFODULI\WKH
UHVSRQVLELOLW\RIWKHPHGLFDO
PRQLWRURQVWXG\
6HFWLRQ
5HYLVHGWH[W6\VWHPLFFRUWLFRVWHURLGV!PJGDLO\SUHGQLVRQH
RUHTXLYDOHQWH[FHSWWRWUHDWRUFRQWURODWUHDWPHQWHPHUJHQW
GUXJUHODWHG$(RUIRUVKRUWWHUPXVHDVSURSK\ODFWLFWUHDWPHQW
&ODULILFDWLRQWRSURKLELWHGRU
UHVWULFWHGFRQFRPLWDQWPHGLFDWLRQ
JXLGHOLQHVIRUFRQVLVWHQF\ZLWK
$SSHQGL[ZKHUHFRQWURORILU$(V
LVGHILQHGDQGWRDOLJQZLWKFXUUHQW
%HL*HQHSURWRFROWHPSODWH
$GGHGWH[W+RZHYHU2SLDWHVDQGRWKHUPHGLFDWLRQV
UHTXLUHGIRUSDOOLDWLYHPDQDJHPHQWRISDWLHQWVDUHDOORZHG
6HFWLRQ
$GGHGWH[W3DWLHQWVZKRKDYHZLWKLQPRQWKVEHIRUHILUVW
VWXG\GUXJDGPLQLVWUDWLRQDQ\FOLQLFDOHYLGHQFHRISRUWDO
K\SHUWHQVLRQZLWKEOHHGLQJHVRSKDJHDORUJDVWULFYDULFHVRU
WKRVHWKDWKDYHXQGHUJRQHDQ\PDMRUVXUJLFDOSURFHGXUH
ZLWKLQGD\VEHIRUHILUVWVWXG\GUXJDGPLQLVWUDWLRQVKRXOG
EHFRQVLGHUHGWRKDYHDVHULRXVXQGHUO\LQJPHGLFDOFRQGLWLRQ
WKDWZRXOGEHXQIDYRUDEOHIRUWKHDGPLQLVWUDWLRQRIVWXG\
GUXJ
7RSURYLGHFODULW\WRSDWLHQW
VFUHHQLQJUHJDUGLQJVHULRXVPHGLFDO
FRQGLWLRQVWKDWZRXOGEHFRQVLGHUHG
XQIDYRUDEOHIRUWKHDGPLQLVWUDWLRQRI
VWXG\GUXJLQDFFRUGDQFHZLWK
H[FOXVLRQFULWHULRQ
6HFWLRQ
$GGHGWH[W&DQFHUKLVWRU\ZLOOLQFOXGHDQDVVHVVPHQWRISULRU
VXUJHU\SULRUUDGLRWKHUDS\SULRUORFRUHJLRQDOWKHUDS\SULRU
GUXJWKHUDS\LQFOXGLQJVWDUWDQGVWRSGDWHVEHVWUHVSRQVHDQG
UHDVRQIRUGLVFRQWLQXDWLRQ
&ODULILFDWLRQWRFDQFHUKLVWRU\
DVVHVVPHQW
6HFWLRQ
$GGHGWH[W1RWH2UDOELUWKFRQWUROSLOOVDUHQRWFRQVLGHUHGD
KLJKO\HIIHFWLYHIRUPRIELUWKFRQWURODQGLIWKH\DUHVHOHFWHG
WKH\PXVWEHXVHGZLWKDVHFRQGEDUULHUPHWKRGRI
FRQWUDFHSWLRQVXFKDVFRQGRPVZLWKRUZLWKRXWVSHUPLFLGH
8SGDWHWRFRQWUDFHSWLRQJXLGHOLQHV
SHUWKH(8&OLQLFDO7ULDO)DFLOLWDWLRQ
*URXS&7)*
$GGHGWH[W1RWH7KLVLVRQO\FRQVLGHUHGDKLJKO\HIIHFWLYH
IRUPRIELUWKFRQWUROZKHQWKHYDVHFWRPL]HGSDUWQHULVWKH
VROHSDUWQHURIWKHVWXG\SDUWLFLSDQWDQGWKHUHKDVEHHQD
PHGLFDODVVHVVPHQWFRQILUPLQJVXUJLFDOVXFFHVV
$GGHGGHILQLWLRQRIDVWHULOHPDOH$VWHULOHPDOHLVRQHIRU
ZKRPD]RRVSHUPLDLQDVHPHQVDPSOHKDVEHHQ
GHPRQVWUDWHGDVGHILQLWLYHHYLGHQFHRILQIHUWLOLW\
5HYLVHGWH[W2IQRWHEDUULHUFRQWUDFHSWLRQLQFOXGLQJPDOHDQG
IHPDOHFRQGRPVZLWKRUZLWKRXWVSHUPLFLGHLVQRWFRQVLGHUHGD
KLJKO\HIIHFWLYHPHWKRGRIFRQWUDFHSWLRQDQGLIXVHGWKLVPHWKRG
PXVWEHXVHGLQFRPELQDWLRQZLWKRQHRIWKHKLJKO\HIIHFWLYH
IRUPVRIELUWKFRQWURODQRWKHUDFFHSWDEOHPHWKRGOLVWHGDERYH
6HFWLRQ
$SSHQGL[
5HPRYHG1HZ<RUN+HDUW$VVRFLDWLRQ1<+$)XQFWLRQDO
&ODVVLILFDWLRQIURPVFKHGXOHRIDVVHVVPHQWVDVLWLVRQO\LQWHQGHG
IRUDVVHVVPHQWRIWKHVHYHULW\RIKHDUWIDLOXUHZKLFKLVDQ
H[FOXVLRQFULWHULRQ
&ODULILFDWLRQWRVFKHGXOHRI
DVVHVVPHQWVDV1<+$LVRQO\
LQWHQGHGIRUDVVHVVPHQWRIVHYHULW\
RIKHDUWIDLOXUHSULRUWRHQUROOPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH
6HFWLRQ
5HYLVHGWH[W,IODERUDWRU\WHVWVDWVFUHHQLQJDUHQRWSHUIRUPHG
ZLWKLQGD\VSULRUWRWKHDGPLQLVWUDWLRQRIVWXG\GUXJRQ&\FOH
'D\FKHPLVWU\KHPDWRORJ\DQGFRDJXODWLRQWHVWVVKRXOGEH
UHSHDWHGDQGUHYLHZHGEHIRUHVWXG\GUXJDGPLQLVWUDWLRQSULRUWR
WUHDWPHQWDXWKRUL]DWLRQ
&ODULILFDWLRQWRODERUDWRU\VDIHW\WHVW
VDPSOHFROOHFWLRQWRHQVXUHWKDW
UHTXLUHGVFUHHQLQJODEUHVXOWVZLWKLQ
GD\VRIILUVWVWXG\GRVHDUH
DYDLODEOHDQGUHYLHZHGSULRUWR
WUHDWPHQWDXWKRUL]DWLRQDQGWRDOLJQ
ZLWKFXUUHQW%HL*HQHSURWRFRO
WHPSODWHDQGWKDWVDIHW\ODEUHVXOWV
DIWHUF\FOHDUHDYDLODEOHDQG
UHYLHZHGZLWKLQGD\VRIHDFK
VXEVHTXHQWGRVH
6HFWLRQ
$GGHGWH[W3DWLHQWVPXVWKDYHDWOHDVWRQHPHDVXUDEOH
OHVLRQDFFRUGLQJWR5(&,67YDWEDVHOLQHSURYLGHGWKDW
x
7KHWDUJHWOHVLRQVVHOHFWHGKDYHQRWEHHQSUHYLRXVO\
WUHDWHGZLWKORFDOWKHUDS\25
x
7KHWDUJHWOHVLRQVVHOHFWHGWKDWDUHZLWKLQWKHILHOGRI
SULRUORFDOWKHUDS\KDYHVXEVHTXHQWO\SURJUHVVHGDV
GHILQHGE\5(&,67Y
&ODULILFDWLRQUHJDUGLQJWKH
GHWHUPLQDWLRQRIPHDVXUDEOHGLVHDVH
DWEDVHOLQHLQWKHFRQWH[WRISULRU
ORFRUHJLRQDOWKHUDSLHV
$GGHGWH[W05,PD\EHXVHGZKHQLWLVWKHVWDQGDUGRIFDUH
DWDVLWHUHJDUGOHVVRIZKHWKHURUQRW&7LVFRQWUDLQGLFDWHG
&ODULILFDWLRQWRDOORZ05,VFDQVWR
EHXVHGLIWKH\DUHORFDOVWDQGDUGRI
FDUH
$GGHGLQVWUXFWLRQIRUFROOHFWLRQRIWULSKDVLFVFDQVDVIROORZV
7KHOLYHUVKRXOGEHLPDJHGXVLQJWULSKDVLFVFDQVLHODWH
DUWHULDOSKDVHSRUWDOYHQRXVSKDVHDQGGHOD\HGHTXLOLEULXP
SKDVHDUHUHTXLUHG(YHU\HIIRUWVKRXOGEHPDGHWRNHHSWKH
PHWKRGRORJ\FRQVLVWHQWDFURVVYLVLWVIRUDVXEMHFWLHSKDVHV
DFTXLUHGWLPLQJIRUHDFKSKDVHHWF6FDQQLQJGHWDLOVZLOOEH
SURYLGHGE\WKHLPDJLQJYHQGRULQDVHSDUDWHVLWHPDQXDO
&ODULILFDWLRQWRUHTXLUHWKH
FROOHFWLRQRIWULSKDVLFVFDQVZKHQ
SRVVLEOHZKLFKLVVWDQGDUGRIFDUH
LQ+&&7KLVZLOOIDFLOLWDWHDGHTXDWH
GLVHDVHDVVHVVPHQWVLQWKLVVHWWLQJ
DQGFRPSDULVRQWRKLVWRULFDOVWXGLHV
6HFWLRQ
5HYLVHGGHWDLOIRUSK\VLFDOH[DPLQDWLRQ8QVFKHGXOHGYLVLWVPD\
EHSHUIRUPHGDWDQ\WLPHDWWKHSDWLHQW¶VRULQYHVWLJDWRU¶VUHTXHVW
DQGPD\LQFOXGHYLWDOVLJQVIRFXVHGSK\VLFDOH[DPLQDWLRQ
(&2*SHUIRUPDQFHVWDWXV$(UHYLHZFRQFRPLWDQWPHGLFDWLRQV
DQGSURFHGXUHVUHYLHZUDGLRJUDSKLFDVVHVVPHQWVSK\VLFDO
H[DPLQDWLRQRIOLYHUVSOHHQDQGO\PSKQRGHVGLVHDVH UHODWHG
FRQVWLWXWLRQDOV\PSWRPVDQGKHPDWRORJ\DQGFKHPLVWU\
ODERUDWRU\DVVHVVPHQWV
&ODULILFDWLRQWRHQVXUH
FRPSUHKHQVLYHSK\VLFDOH[DP
DVVHVVPHQWVDUHSHUIRUPHG
6HFWLRQ
$GGHGWH[W3DWLHQWVZKRLQWKHRSLQLRQRIWKH,QYHVWLJDWRU
FRQWLQXHWREHQHILWIURPWLVOHOL]XPDEDWVWXG\WHUPLQDWLRQ
ZLOOEHRIIHUHGWKHRSWLRQWRFRQWLQXHWUHDWPHQWLQD
FRPSDQ\VSRQVRUHGFOLQLFDOWULDOXQWLOLWLVFRPPHUFLDOO\
DYDLODEOHLQWKHFRXQWU\
&ODULILFDWLRQSHU)UHQFK+HDOWK
$XWKRULW\IHHGEDFNDQGWRDOLJQZLWK
FXUUHQW%HL*HQHSURWRFROWHPSODWH
6HFWLRQ
5HYLVHGWH[W6SHFLILFDOO\SDWLHQWVDWULVNIRUVWXG\HPHUJHQW
DFWLYHDXWRLPPXQHGLVHDVHVRUKLVWRU\RIDXWRLPPXQHGLVHDVHV
WKDWPD\UHODSVHSDWLHQWVZKRKDYHXQGHUJRQHDOORJHQLFVWHP
FHOORURUJDQWUDQVSODQWDWLRQDQGSDWLHQWVZKRKDYHUHFHLYHGD
OLYHYLUDOYDFFLQHZLWKLQGD\VEHIRUHVWXG\GUXJ
DGPLQLVWUDWLRQDUHH[FOXGHGIURPWKHVWXG\VHH6HFWLRQIRU
WKHIXOOOLVWRIH[FOXVLRQFULWHULD
)RUDOLJQPHQWZLWK
LQFOXVLRQH[FOXVLRQFULWHULD


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH
6HFWLRQ
5HYLVHGWH[W&RQWLQXRXVYDULDEOHVLQFOXGHDJHZHLJKWYLWDO
VLJQVWLPHVLQFHLQLWLDOFDQFHUGLDJQRVLVDQGWLPHVLQFH
DGYDQFHGPHWDVWDWLFGLVHDVHGLDJQRVLVFDWHJRULFDOYDULDEOHV
LQFOXGHJHQGHU(&2*JHRJUDSKLFDOUHJLRQFRXQWU\UDFH
&KLOG3XJKFODVVLILFDWLRQKHSDWLWLVYLUXV%&/&VWDJLQJ710
VWDJLQJPHWDVWDWLFVLWHDQGPDFURYDVFXODULQYDVLRQDQGRU
H[WUDKHSDWLFVSUHDGVWDWXV
1RWXVLQJ710VWDJLQJLQWKLV
SURWRFRO
6HFWLRQ
5HYLVHGWH[W7KLVLVLQWHQGHGWRHQVXUHILQDQFLDOLQWHUHVWVDQG
DUUDQJHPHQWVRIWKHFOLQLFDOLQYHVWLJDWRUVZLWKSDUWLHV
VXSSRUWLQJWKHVWXG\%HL*HQHDQGDIILOLDWHVWKDWFRXOGDIIHFW
UHOLDELOLW\RIGDWDVXEPLWWHGWRKHDOWKDXWKRULWLHVDUHLGHQWLILHG
DQGGLVFORVHGE\WKHVSRQVRU
7RHQVXUHFRYHUDJHRI%HL*HQH¶V
DIILOLDWHV
6HFWLRQ
5HYLVHGWH[W7KHLQYHVWLJDWRURUGHOHJDWHGGHVLJQHHZKRLV
LQFOXGHGRQ)RUP)'$RUHTXLYDOHQWVXFKDVD
6WDWHPHQWRI,QYHVWLJDWRUDVDSSOLFDEOHIRU1RQ86
,QYHVWLJDWRUVPXVWVLJQWKHFRPSOHWHGFDVHERRNVWRDWWHVWWRLWV
DFFXUDF\DXWKHQWLFLW\DQGFRPSOHWHQHVV
&ODULILFDWLRQWH[W
$SSHQGL[,
$GGHGRUGD\ZLQGRZVWRDVVHVVPHQWGD\V&\FOHVWRRI
WKHWUHDWPHQWSHULRG
7RSURYLGHUHDVRQDEOHRSSRUWXQLW\
WRFRPSOHWHDVVHVVPHQWV
$GGHGWH[WWRIRRWQRWH,IWKHVFUHHQLQJXULQHSUHJQDQF\
WHVWKDVQRWEHHQGRQHZLWKLQGD\VRIILUVWGRVHLWZRXOG
QHHGWREHUHSHDWHGDW&\FOH'D\SULRUWRGRVLQJ
&ODULILFDWLRQWH[WWRDGGUHVV*HUPDQ
$XWKRULW\IHHGEDFN
$GGHGWH[WWRIRRWQRWH5HVXOWVRISXOPRQDU\IXQFWLRQ
WHVWLQJVKRXOGEHUHYLHZHGSULRUWRWUHDWPHQWDXWKRUL]DWLRQ
&ODULILFDWLRQWH[W
5HYLVHGIRRWQRWH7HVWLQJZLOOEHSHUIRUPHGE\WKH
ORFDOFHQWUDOODERUDWRU\DWVFUHHQLQJDQGLQFOXGH+,9WHVWLQJDQG
+%9+&9VHURORJ\+%V$J+%V$E+%F$EDQG+&9
DQWLERG\DQGYLUDOORDGDVVHVVPHQW+%9'1$DQG+&9
51$
+,9WHVWLQJLVQRWUHTXLUHGIRU
HOLJLELOLW\SURWRFROFODULILFDWLRQ
PHPRZDVLQFRUSRUDWHGLQWRWKLV
DPHQGPHQW
$GGHGIRRWQRWH$OO&KLOG3XJKFODVVLILFDWLRQ$SSHQGL[
HYDOXDWLRQVPXVWEHSHUIRUPHGZLWKLQGD\VRIILUVWVWXG\
GUXJDGPLQLVWUDWLRQ
7RDOLJQZLWKLQFOXVLRQFULWHULDFWR
HQVXUHWKDWDOO&KLOG3XJKUHODWHG
HYDOXDWLRQVDUHFRQWHPSRUDQHRXV
ZLWKSDWLHQWHQUROOPHQWDQGWR
SURYLGHFODULILFDWLRQWRWLPLQJ
$GGHG4XDOLW\RI/LIH42/TXHVWLRQQDLUHV(4'/
(257&4/4&DQG(257&4/4+&&WR(QGRI
7UHDWPHQWDVVHVVPHQWV
7RSURYLGHFODULILFDWLRQWRWKH
WLPLQJRIWKHVH42/DVVHVVPHQWV
$SSHQGL[
$GGHGDVVHVVPHQW&UHDWLQHNLQDVH
&UHDWLQHNLQDVHFDUGLDFPXVFOHLVRHQ]\PH&.0%
$GGLWLRQDODVVHVVPHQWVDUHEHLQJ
LPSOHPHQWHGWRPRQLWRUIRU
P\RFDUGLWLVP\RVLWLVGXULQJWKH
VWXG\
$GGHGIRRWQRWH,QWKHHYHQW&.0%IUDFWLRQDWLRQLVQRW
DYDLODEOHSOHDVHDVVHVVWURSRQLQ,DQGRUWURSRQLQ7LQVWHDG
$SSHQGL[
5HYLVHGJXLGHOLQHVIRUWUHDWPHQWRILPPXQHUHODWHGDGYHUVH
HYHQWVWKURXJKRXWDSSHQGL[
7RSURYLGHFRQVLVWHQF\ZLWKFXUUHQW
%HL*HQHSURWRFROWHPSODWHDQGWR
SURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH
$SSHQGL[
&ODULILFDWLRQWRLPPXQHUHODWHGWR[LFLW\H\HGLVRUGHUV,ISDWLHQWV
H[SHULHQFHDFXWHQHZRQVHWRUZRUVHQLQJH\HLQIODPPDWLRQ
EOXUUHGYLVLRQRURWKHUYLVXDOGLVWXUEDQFHUHIHUWKHSDWLHQW
XUJHQWO\WRDQRSKWKDOPRORJLVWIRUHYDOXDWLRQDQGPDQDJHPHQW
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRLPPXQHUHODWHGWR[LFLW\DVIROORZV
5KHXPDWRORJ\-RLQWRUPXVFOHLQIODPPDWLRQ
DQGDGGHGWH[W)RUVXVSHFWHG
P\RVLWLVUKDEGRP\RO\VLVP\DVWKHQLDLQFOXGH&.(65
&53WURSRQLQDQGFRQVLGHUDPXVFOHELRSV\
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
$GGHGLPPXQHUHODWHGWR[LFLW\0\RFDUGLWLV3HUIRUP(&*
HFKRFDUGLRJUDP&.&.0%WURSRQLQ,DQGRU7DQGUHIHUWR
DFDUGLRORJLVW
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
8SGDWHWRWK\URLGGLVRUGHUWUHDWPHQWJXLGHOLQHVDVIROORZV
*UDGH5HIHUSDWLHQWWRDQHQGRFULQRORJLVW
,IK\SRWK\URLGUHSODFHZLWKWK\UR[LQHJNJGD\IRU
WKHHOGHUO\RUWKRVHZLWKFRPRUELGLWLHVWKHVXJJHVWHGVWDUWLQJ
GRVHLVJNJGD\
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRGHILQLWLRQRIK\SRSK\VLWLV
*UDGH0LOGPRGHUDWHV\PSWRPV
*UDGH0RGHUDWH VHYHUH6HYHUHRUOLIHWKUHDWHQLQJV\PSWRPV
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRSQHXPRQLWLVWUHDWPHQWJXLGHOLQH
*UDGH,QLWLDWH$GPLWWRDKRVSLWDODQGLQLWLDWHWUHDWPHQW
ZLWK,9PHWK\OSUHGQLVRORQHPJNJGD\
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRQHXURORJLFDOWR[LFLW\WUHDWPHQWJXLGHOLQH
*UDGH7DSHURYHUDWOHDVWPRQWKZHHNV2EWDLQQHXURORJ\
FRQVXOWDWLRQ
*UDGH7DSHUFRUWLFRVWHURLGVRYHUDWOHDVWPRQWKZHHNV
&RQVLGHUD]DWKLRSULQH00)F\FORVSRULQHLIQRUHVSRQVHZLWKLQ
KRXUV
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRFROLWLVGLDUUKHDWUHDWPHQWJXLGHOLQH
*UDGH7DSHUVWHURLGVRYHUZHHNVFRQVLGHUHQGRVFRS\LI
V\PSWRPVDUHUHFXUULQJ+ROGVWXG\WUHDWPHQWUHVXPHZKHQ
UHVROYHGLPSURYHGWREDVHOLQHJUDGH 
*UDGH&RQYHUWWRRUDOSUHGQLVRORQHDQGWDSHURYHUDWOHDVW
PRQWKZHHNV+ROGVWXG\WUHDWPHQWUHWUHDWPHQWPD\EH
FRQVLGHUHGZKHQUHVROYHGLPSURYHGWREDVHOLQHJUDGH DQG
DIWHUGLVFXVVLRQZLWKWKHVWXG\PHGLFDOPRQLWRU
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRVNLQUHDFWLRQVWUHDWPHQWJXLGHOLQH
*UDGH&RQVLGHUDVKRUWFRXUVHRIRUDOVWHURLGV
*UDGH)RUVHYHUHV\PSWRPV,9PHWK\OSUHGQLVRORQH
PJNJGD\FRQYHUWWRRUDOSUHGQLVRORQHDQGWDSHURYHUDWOHDVW
ZHHNV
*UDGH6HHN$GPLWWRDKRVSLWDODQGVHHNXUJHQWGHUPDWRORJ\
UHYLHZ
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH

$SSHQGL[

5HYLVLRQWRKHSDWLWLVWUHDWPHQWJXLGHOLQH
*UDGH&KHFN/)7VZLWKLQZHHNDQGEHIRUHWKHQH[WGRVH
FKHFN/)7VWRYHULI\WKDWWKHUHKDVEHHQQRZRUVHQLQJ,I
/)7VDUHZRUVHQLQJUHFKHFNHYHU\KRXUVXQWLO
LPSURYHPHQWLVVHHQ&RQWLQXHVWXG\WUHDWPHQWLI/)7VDUH
XQFKDQJHGRULPSURYLQJ+ROGVWXG\WUHDWPHQWLI/)7VDUH
ZRUVHQLQJXQWLOLPSURYHPHQWLVVHHQ
*UDGH+ROGVWXG\WUHDWPHQWWUHDWPHQWPD\EHUHVXPHGZKHQ
UHVROYHGLPSURYHGWREDVHOLQHJUDGH DQGSUHGQLVRORQH
WDSHUHGWRPJ
*UDGH:KHQ/)7VLPSURYHWRJUDGHRUORZHUFRQYHUWWR
RUDOSUHGQLVRORQHDQGWDSHURYHUDWOHDVWPRQWKZHHNV+ROG
VWXG\WUHDWPHQWXQWLOLPSURYHGWREDVHOLQHJUDGH
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
5HYLVLRQWRQHSKULWLVWUHDWPHQWJXLGHOLQH
*UDGH,IDWWULEXWHGWRVWXG\GUXJDQGUHVROYHGLPSURYHGWR
EDVHOLQHJUDGH 
*UDGH7DSHUFRUWLFRVWHURLGVRYHUDWOHDVWPRQWKZHHNV
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
$GGHGDXWRLPPXQHWR[LFLW\
0\RVLWLV5KDEGRP\RO\VLV
*UDGH0LOGZHDNQHVVZLWKZLWKRXWSDLQ3UHVFULEH
DQDOJHVLFV,I&.LVVLJQLILFDQWO\HOHYDWHGDQGSDWLHQWKDV
V\PSWRPVFRQVLGHURUDOVWHURLGVDQGWUHDWDV*UDGH
&RQWLQXHVWXG\WUHDWPHQW
*UDGH0RGHUDWHZHDNQHVVZLWKZLWKRXWSDLQ,I&.LV;
8/1RUZRUVHLQLWLDWHRUDOSUHGQLVRORQHPJNJDQG
WDSHURYHUDWOHDVWZHHNV+ROGVWXG\WUHDWPHQWXQWLO
LPSURYHGWRJUDGH
*UDGH6HYHUHZHDNQHVVOLPLWLQJVHOIFDUH$GPLWWR
KRVSLWDODQGLQLWLDWHRUDOSUHGQLVRORQHPJNJ&RQVLGHU
EROXV,9PHWK\OSUHGQLVRORQHDQGPJNJGD\
PDLQWHQDQFHIRUVHYHUHDFWLYLW\UHVWULFWLRQRUG\VSKDJLD,I
V\PSWRPVGRQRWLPSURYHDGGLPPXQRVXSSUHVVDQWWKHUDS\
7DSHURUDOVWHURLGVRYHUDWOHDVWZHHNV+ROGVWXG\
WUHDWPHQWXQWLOLPSURYHGWRJUDGH'LVFRQWLQXHLIDQ\
HYLGHQFHRIP\RFDUGLDOLQYROYHPHQW
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFWLRQD
.H\&KDQJH
5DWLRQDOHIRUFKDQJH

$SSHQGL[

$GGHGDXWRLPPXQHWR[LFLW\
0\RFDUGLWLV
*UDGH,QLWLDWHFDUGLDFHYDOXDWLRQXQGHUFORVHPRQLWRULQJ
ZLWKUHSHDWVHUXPWHVWLQJFRQVLGHUUHIHUUDOWRDFDUGLRORJLVW
,IGLDJQRVLVRIP\RFDUGLWLVLVFRQILUPHGWUHDWDV*UDGH
*UDGH6\PSWRPVRQPLOGPRGHUDWHH[HUWLRQ*UDGH
6HYHUHV\PSWRPVZLWKPLOGH[HUWLRQDQG*UDGH/LIH
WKUHDWHQLQJ$GPLWWRKRVSLWDODQGLQLWLDWHRUDOSUHGQLVRORQH
RU,9PHWK\OSUHGQLVRORQHDWPJNJGD\&RQVXOWZLWKD
FDUGLRORJLVWDQGPDQDJHV\PSWRPVRIFDUGLDFIDLOXUH
DFFRUGLQJWRORFDOJXLGHOLQHV,IQRLPPHGLDWHUHVSRQVH
FKDQJHWRSXOVHGGRVHVRIPHWK\OSUHGQLVRORQHJGD\DQG
DGG00)LQIOL[LPDERUDQWLWK\PRF\WHJOREXOLQ
6WXG\PDQDJHPHQWIRU*UDGHVDQG+ROGVWXG\
WUHDWPHQW,IDGLDJQRVLVRIP\RFDUGLWLVLVFRQILUPHG
SHUPDQHQWO\GLVFRQWLQXHVWXG\WUHDWPHQWLQSDWLHQWVZLWK
PRGHUDWHRUVHYHUHV\PSWRPV3DWLHQWVZLWKQRV\PSWRPVRU
PLOGV\PSWRPVPD\QRWUHVWDUWWLVOHOL]XPDEXQOHVVFDUGLDF
SDUDPHWHUVKDYHUHWXUQHGWREDVHOLQHDQGDIWHUGLVFXVVLRQ
ZLWKWKHVWXG\PHGLFDOPRQLWRU
7RSURYLGHFODULILFDWLRQWRSURWRFRO
LU$(HYDOXDWLRQDQGPDQDJHPHQW
JXLGHOLQHV
$SSHQGL[
$GGHGQHZDSSHQGL[IRU%DUFHORQD&OLQLF/LYHU&DQFHU%&/&
VWDJLQJFODVVLILFDWLRQ
7RSURYLGHDGGLWLRQDOJXLGDQFHWR
VFUHHQLQJSURFHGXUHV
D5HIHUVWRVHFWLRQQXPEHULQ$PHQGPHQWSURWRFRO


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7$%/(2)&217(176
),1$/35272&2/$33529$/6+((7 
,19(67,*$7256,*1$785(3$*( 
7$%/(2)&217(176 
6<1236,6 
/,672)$%%5(9,$7,216$1'7(506 
 
,1752'8&7,21 
 
+HSDWRFHOOXODU&DUFLQRPD 
 
&XUUHQW7UHDWPHQWRI+HSDWRFHOOXODU&DUFLQRPD 
 
$QWL3'$QWL3'/7KHUDS\IRU$GYDQFHG+HSDWRFHOOXODU&DUFLQRPD 
 
%DFNJURXQG,QIRUPDWLRQRQ7LVOHOL]XPDE%*%$ 
 
3KDUPDFRORJ\ 
 
7R[LFRORJ\ 
 
&OLQLFDO3KDUPDFRORJ\ 
 
/DFNRI(WKQLF'LIIHUHQFHVLQ([SRVXUH 
 
3ULRU&OLQLFDO([SHULHQFHRI%*%$ 
 
%*%$B6WXG\B3KDVHD 
 
%*%$B6WXG\B3KDVHE 
 
6WXG\5DWLRQDOHV 
 
5DWLRQDOHIRU%*%$LQWKH7UHDWPHQWRI+HSDWRFHOOXODU&DUFLQRPD 
 
5DWLRQDOHIRU6HOHFWLRQRI%*%$'RVH 
 
%HQHILW5LVN$VVHVVPHQW 
 
678'<2%-(&7,9(6$1'(1'32,176 
 
6WXG\2EMHFWLYHV 
 
3ULPDU\2EMHFWLYH 
 
6HFRQGDU\2EMHFWLYHV 
 
([SORUDWRU\2EMHFWLYHV 
 
6WXG\(QGSRLQWV 
 
3ULPDU\(QGSRLQW 
 
6HFRQGDU\(QGSRLQWV 
 
([SORUDWRU\(QGSRLQWV 
 
678'<'(6,*1 


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 
6XPPDU\RI6WXG\'HVLJQ 
 
6WXG\6FKHPDWLF 
 
'XUDWLRQRI6WXG\ 
 
6FUHHQLQJ3HULRG 
 
7UHDWPHQW3HULRG 
 
6DIHW\)ROORZXS3HULRG 
 
6XUYLYDO)ROORZXS3HULRG 
 
678'<3238/$7,21 
 
,QFOXVLRQ&ULWHULD 
 
([FOXVLRQ&ULWHULD 
 
678'<75($70(17 
 
)RUPXODWLRQ3DFNDJLQJDQG+DQGOLQJ 
 
%*%$ 
 
'RVDJH$GPLQLVWUDWLRQDQG&RPSOLDQFH 
 
2YHUGRVH 
 
,QYHVWLJDWLRQDO0HGLFLQDO3URGXFW$FFRXQWDELOLW\ 
 
'RVH'HOD\DQG0RGLILFDWLRQ 
 
'RVH0RGLILFDWLRQIRU%*%$ 
 
35,25$1'&21&20,7$177+(5$3< 
 
&RQFRPLWDQW7KHUDS\ 
 
3HUPLWWHG&RQFRPLWDQW0HGLFDWLRQVDQG7KHUDS\ 
 
3URKLELWHGRU5HVWULFWHG&RQFRPLWDQW0HGLFDWLRQV 
 
3RWHQWLDO,QWHUDFWLRQV%HWZHHQ%*%$DQG&RQFRPLWDQW0HGLFDWLRQV 
 
678'<$66(660(176$1'352&('85(6 
 
6FUHHQLQJ 
 
'HPRJUDSKLF'DWDDQG0HGLFDO+LVWRU\ 
 
'HILQLWLRQVRI³:RPHQRI&KLOGEHDULQJ3RWHQWLDO´³:RPHQRI1R
&KLOGEHDULQJ3RWHQWLDO´ 
 
&RQWUDFHSWLRQ*XLGHOLQHV 
 
,QIRUPHG&RQVHQWDQG6FUHHQLQJ/RJ 
 
3XOPRQDU\)XQFWLRQ7HVWV 
 
(QUROOPHQW 


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 
&RQILUPDWLRQRI(OLJLELOLW\ 
 
3DWLHQW1XPEHULQJ 
 
%*%$'LVSHQVDWLRQ 
 
6DIHW\$VVHVVPHQWV 
 
9LWDO6LJQV 
 
3K\VLFDO([DPLQDWLRQV 
 
(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS3HUIRUPDQFH6WDWXV 
 
/DERUDWRU\6DIHW\7HVWV 
 
(OHFWURFDUGLRJUDPV 
 
$GYHUVH(YHQWV 
 
2SKWKDOPRORJLF([DPLQDWLRQ 
 
7XPRUDQG5HVSRQVH(YDOXDWLRQV 
 
+HDOWK5HODWHG4XDOLW\RI/LIH$VVHVVPHQW 
 
3KDUPDFRNLQHWLFDQG$QWL'UXJ$QWLERG\7HVWLQJ 
 
%LRPDUNHUV 
 
9LVLW:LQGRZV 
 
8QVFKHGXOHG9LVLWV 
 
6DIHW\)ROORZXS9LVLW 
 
6XUYLYDO)ROORZXS 
 
3DWLHQW7UHDWPHQW6WXG\DQG6LWH'LVFRQWLQXDWLRQ 
 
'LVFRQWLQXDWLRQIURP6WXG\7UHDWPHQW 
 
(QGRI6WXG\ 
 
6$)(7<021,725,1*$1'5(3257,1* 
 
5LVNV$VVRFLDWHGZLWK%*%$ 
 
*HQHUDO3ODQWR0DQDJH6DIHW\&RQFHUQV 
 
(OLJLELOLW\&ULWHULD 
 
6DIHW\0RQLWRULQJ3ODQ 
 
$GYHUVH(YHQWV 
 
'HILQLWLRQVDQG5HSRUWLQJ 
 
$VVHVVPHQWRI6HYHULW\ 
 
$VVHVVPHQWRI&DXVDOLW\ 
 
)ROORZLQJ$GYHUVH(YHQWV 


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 
/DERUDWRU\7HVW$EQRUPDOLWLHV 
 
'HILQLWLRQRID6HULRXV$GYHUVH(YHQW 
 
6XVSHFWHG8QH[SHFWHG6HULRXV$GYHUVH5HDFWLRQ 
 
7LPLQJ)UHTXHQF\DQG0HWKRGRI&DSWXULQJ$GYHUVH(YHQWVDQG6HULRXV
$GYHUVH(YHQWV 
 
$GYHUVH(YHQW5HSRUWLQJ3HULRG 
 
5HSRUWLQJ6HULRXV$GYHUVH(YHQWV 
 
3URPSW5HSRUWLQJRI6HULRXV$GYHUVH(YHQWV 
 
&RPSOHWLRQDQG7UDQVPLVVLRQRIWKH6HULRXV$GYHUVH(YHQW5HSRUW 
 
5HJXODWRU\5HSRUWLQJ5HTXLUHPHQWVIRU6HULRXV$GYHUVH(YHQWV 
 
(OLFLWLQJ$GYHUVH(YHQW,QIRUPDWLRQ 
 
5HFRUGLQJ'LVHDVH3URJUHVVLRQ 
 
5HFRUGLQJ'HDWKV 
 
5HFRUGLQJ3UHJQDQFLHV 
 
5HFRUGLQJ3RVW6WXG\$GYHUVH(YHQWV 
 
([SHGLWHG5HSRUWLQJWR+HDOWK$XWKRULWLHV,QYHVWLJDWRUV,QVWLWXWLRQDO5HYLHZ
%RDUGVDQG,QGHSHQGHQW(WKLFV&RPPLWWHHV 
 
0DQDJHPHQWRI$GYHUVH(YHQWVRI6SHFLDO,QWHUHVW 
 
$EQRUPDO,QIXVLRQ5HODWHG5HDFWLRQV 
 
6HYHUH+\SHUVHQVLWLYLW\5HDFWLRQVDQG)OX/LNH6\PSWRPV 
 
,PPXQH5HODWHG$GYHUVH(YHQWV 
 
+HSDWLFDQG5HQDO)XQFWLRQ$EQRUPDOLWLHV 
 
67$7,67,&$/0(7+2'6$1'6$03/(6,=('(7(50,1$7,21 
 
6WDWLVWLFDO$QDO\VLV 
 
$QDO\VLV6HWV 
 
3DWLHQW'LVSRVLWLRQ 
 
'HPRJUDSKLFDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV 
 
3ULRUDQG&RQFRPLWDQW0HGLFDWLRQV 
 
(IILFDF\$QDO\VHV 
 
3ULPDU\(IILFDF\$QDO\VHV 
 
6HFRQGDU\(IILFDF\$QDO\VHV 
 
6DIHW\$QDO\VHV 


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 
([WHQWRI([SRVXUH 
 
$GYHUVH(YHQWV 
 
/DERUDWRU\$QDO\VHV 
 
9LWDO6LJQV 
 
3K\VLFDO([DPLQDWLRQ 
 
2SKWKDOPRORJLF([DPLQDWLRQ 
 
3KDUPDFRNLQHWLF$QDO\VLV 
 
,PPXQRJHQLFLW\$QDO\VLV 
 
([SORUDWRU\$QDO\VHV 
 
6DPSOH6L]H&RQVLGHUDWLRQ 
 
,QWHULP$QDO\VHV 
 
678'<&200,77((6$1'&20081,&$7,21 
 
,QGHSHQGHQW5HYLHZ&RPPLWWHH 
 
6285&('2&80(176$1'$&&(66726285&(
'$7$'2&80(176 
 
$FFHVVWR,QIRUPDWLRQIRU0RQLWRULQJ 
 
$FFHVVWR,QIRUPDWLRQIRU$XGLWLQJRU,QVSHFWLRQV 
 
48$/,7<$6685$1&($1'48$/,7<&21752/ 
 
5HJXODWRU\$XWKRULW\$SSURYDO 
 
4XDOLW\$VVXUDQFH 
 
6WXG\6LWH,QVSHFWLRQV 
 
'UXJ$FFRXQWDELOLW\ 
 
(7+,&63527(&7,212)+80$13$7,(176 
 
(WKLFDO6WDQGDUG 
 
,QVWLWXWLRQDO5HYLHZ%RDUG,QGHSHQGHQW(WKLFV&RPPLWWHH 
 
3URWRFRO$PHQGPHQWV 
 
,QIRUPHG&RQVHQW 
 
3DWLHQWDQG'DWD&RQILGHQWLDOLW\ 
 
)LQDQFLDO'LVFORVXUH 
 
'$7$+$1'/,1*$1'5(&25'.((3,1* 
 
'DWD&ROOHFWLRQDQG0DQDJHPHQW5HVSRQVLELOLWLHV 
 
'DWD&ROOHFWLRQ 


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 
'DWD0DQDJHPHQW&RGLQJ 
 
6WXG\5HFRUGV5HWHQWLRQ 
 
3URWRFRO'HYLDWLRQV 
 
3XEOLFDWLRQDQG'DWD6KDULQJ3ROLF\ 
 
,QIRUPDWLRQ'LVFORVXUHDQG,QYHQWLRQV 
 
5()(5(1&(6 
$33(1',; 
6&+('8/(2)$66(660(176 
$33(1',; 
&+,/'38*+&/$66,),&$7,216&25,1*6<67(0 
$33(1',; 
(&2*3(5)250$1&(67$786 
$33(1',; 
&/,1,&$//$%25$725<$66(660(176 
$33(1',; 
7+(5(63216((9$/8$7,21&5,7(5,$,162/,'780256
5(&,67*8,'(/,1(69(56,21 
$33(1',; 
1(:<25.+($57$662&,$7,21)81&7,21$/
&/$66,),&$7,21 
$33(1',; 
,0081(5(/$7('$'9(56((9(17(9$/8$7,21$1'
0$1$*(0(17 
$33(1',; 
0$1$*(0(172),1)86,215(/$7('5($&7,216 
$33(1',; 
&+521,&.,'1(<',6($6((3,'(0,2/2*<&2//$%25$7,21
&.'(3,(48$7,21 
$33(1',; *8,'$1&(21'(),1,7,212)),567/,1(256(&21'/,1(
75($70(17 
$33(1',; %$5&(/21$&/,1,&/,9(5&$1&(5%&/&67$*,1*
&/$66,),&$7,21 


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
/,672)7$%/(6
7DEOH 
7LPHIUDPHVDQG'RFXPHQWDWLRQ0HWKRGVIRU5HSRUWLQJ6HULRXV$GYHUVH
(YHQWVWRWKH6SRQVRURU'HVLJQHH 
7DEOH 
,PPXQH5HODWHG$GYHUVH(YHQWV$VVRFLDWHGZLWK$QWL3''UXJV 

/,672)),*85(6
)LJXUH6WXG\'HVLJQ6FKHPDWLF 



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6<1236,6 
1DPHRI6SRQVRU&RPSDQ\%HL*HQH/WG
,QYHVWLJDWLRQDO3URGXFW7LVOHOL]XPDE%*%$
7LWOHRI6WXG\$3KDVH2SHQODEHO0XOWLFHQWHU6WXG\WR,QYHVWLJDWHWKH(IILFDF\6DIHW\DQG
3KDUPDFRNLQHWLFVRIWKH$QWL3'0RQRFORQDO$QWLERG\%*%$LQ3DWLHQWVZLWK3UHYLRXVO\7UHDWHG
+HSDWRFHOOXODU8QUHVHFWDEOH&DUFLQRPD
3URWRFRO,GHQWLILHU%*%$
3KDVHRI'HYHORSPHQW
1XPEHURI3DWLHQWV$SSUR[LPDWHO\
6WXG\&HQWHUV$SSUR[LPDWHO\FHQWHUVLQWHUQDWLRQDOO\
6WXG\2EMHFWLYHV
3ULPDU\
x
7RHYDOXDWHWKHHIILFDF\RI%*%$WKURXJK,QGHSHQGHQW5HYLHZ&RPPLWWHH,5&DVVHVVHG
REMHFWLYHUHVSRQVHUDWH255E\5HVSRQVH(YDOXDWLRQ&ULWHULDLQ6ROLG7XPRUV5(&,67
9HUVLRQYLQSUHYLRXVO\WUHDWHGXQUHVHFWDEOHKHSDWRFHOOXODUFDUFLQRPD+&&
6HFRQGDU\
x
7RDVVHVVWKHHIILFDF\RI%*%$WKURXJKGXUDWLRQRIUHVSRQVH'25SURJUHVVLRQIUHH
VXUYLYDO3)6GLVHDVHFRQWUROUDWH'&5DQGFOLQLFDOEHQHILWUDWH&%5DVVHVVHGE\,5&DQG
RYHUDOOVXUYLYDO26
x
7RDVVHVVHIILFDF\RI%*%$WKURXJK255'253)6'&5DQG&%5DVVHVVHGE\WKH
LQYHVWLJDWRUV
x
7RDVVHVVWKHVDIHW\DQGWROHUDELOLW\RI%*%$LQSDWLHQWVZLWKSUHYLRXVO\WUHDWHG
XQUHVHFWDEOH+&&
x
7RDVVHVVWKHKHDOWKUHODWHGTXDOLW\RIOLIH+54R/RI%*%$LQSDWLHQWVZLWKSUHYLRXVO\
WUHDWHGXQUHVHFWDEOH+&&
([SORUDWRU\
x
7RDVVHVVSRWHQWLDOSUHGLFWLYHELRPDUNHUV
x
7RFKDUDFWHUL]HWKHSKDUPDFRNLQHWLFV3.RI%*%$
x
7RDVVHVVKRVWLPPXQRJHQLFLW\WR%*%$
6WXG\(QGSRLQWV
3ULPDU\
255FRPSOHWHUHVSRQVH>&5@SDUWLDOUHVSRQVH>35@EDVHGRQ5(&,67YLQSDWLHQWVZLWK
SUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&DVHYDOXDWHGE\DQ,5&


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
6HFRQGDU\
x
'253)6'&5DQG&%5DVVHVVHGE\,5&DQG26
x
255'253)6'&5DQG&%5DVVHVVHGE\,QYHVWLJDWRUV
x
6DIHW\DQGWROHUDELOLW\DVVHVVPHQWRIDGYHUVHHYHQWV$(VVHULRXVDGYHUVHHYHQWV6$(V
SK\VLFDOH[DPLQDWLRQYLWDOVLJQVHOHFWURFDUGLRJUDP(&*DQGODERUDWRU\PHDVXUHPHQWV
x
+54R/PHDVXUHGXVLQJ(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XDOLW\RI
/LIH4XHVWLRQQDLUH+HSDWRFHOOXODU&DUFLQRPD4XHVWLRQV(257&4/4+&&LQGH[VFRUH
(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XDOLW\RI/LIH4XHVWLRQQDLUH&RUH
(257&4/4&LQGH[VFRUHDQGWKHOHYHOYHUVLRQRIWKH(XURSHDQ4XDOLW\RI/LIH
'LPHQVLRQDO4XHVWLRQQDLUH(4'/
([SORUDWRU\
x
3UHGLFWLYHELRPDUNHUIRUH[DPSOHSURJUDPPHGFHOOGHDWKSURWHLQOLJDQG>3'/@H[SUHVVLRQ
DQGJHQHH[SUHVVLRQLQWXPRUWLVVXH
x
3.6XPPDU\RISODVPDFRQFHQWUDWLRQVRI%*%$
x
,PPXQRJHQLFLW\$VVHVVPHQWVRILPPXQRJHQLFLW\RI%*%$WRGHWHUPLQHWKHLQFLGHQFHRI
DQWLGUXJDQWLERGLHV$'$V
6WXG\'HVLJQ
7KLVLVD3KDVHPXOWLFHQWHURSHQODEHOVWXG\LQDGXOWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&
$SSUR[LPDWHO\SDWLHQWVZLOOUHFHLYH%*%$PJLQWUDYHQRXVO\,9HYHU\ZHHNV4:
7KHVWXG\GHVLJQVFKHPDLVDVIROORZV







$IWHUFRPSOHWLQJDOO6FUHHQLQJDFWLYLWLHVSDWLHQWVFRQILUPHGE\WKHVSRQVRUWREHHOLJLEOHZLOOUHFHLYH
RSHQODEHOWUHDWPHQWZLWK%*%$XQWLOLQWROHUDEOHWR[LFLW\ZLWKGUDZDORILQIRUPHGFRQVHQWRUWKH
WLPHSRLQWDWZKLFKLQWKHRSLQLRQRIWKHLQYHVWLJDWRUWKHSDWLHQWLVQRORQJHUEHQHILWLQJIURPVWXG\
WKHUDS\ZKLFKHYHUVKRXOGRFFXUILUVW7UHDWPHQWEH\RQGLQLWLDOGLVHDVHSURJUHVVLRQDVDVVHVVHGE\WKH
LQYHVWLJDWRUSHU5(&,67YLVSHUPLWWHGSURYLGHGWKDWWKHSDWLHQWPHHWVSURWRFROVSHFLILHGFULWHULD2I
WKHSDWLHQWVDWOHDVWSDWLHQWVZLOOEHHQUROOHGZKRKDYHKDGQRPRUHWKDQOLQHRISULRUV\VWHPLF
WKHUDS\DQGDWOHDVWSDWLHQWVZLOOEHHQUROOHGZKRKDYHKDGDWOHDVWOLQHVRISULRUV\VWHPLFWKHUDS\
6WXG\$VVHVVPHQWV
5DGLRORJLFDODVVHVVPHQWRIWXPRUUHVSRQVHVWDWXVVKRXOGEHSHUIRUPHGHYHU\ZHHNVLQWKHILUVWZHHNV
WKHQHYHU\ZHHNVWKHUHDIWHU7XPRUUHVSRQVHZLOOEHDVVHVVHGE\DQ,5&DQGE\LQYHVWLJDWRUV3DWLHQWV
ZKRGLVFRQWLQXHVWXG\GUXJIRUUHDVRQVRWKHUWKDQGLVHDVHSURJUHVVLRQHJWR[LFLW\ZLOOFRQWLQXHWR
XQGHUJRWXPRUDVVHVVPHQWVXQWLOGLVHDVHSURJUHVVLRQZLWKGUDZDORIFRQVHQWGHDWKRUVWDUWRIDQHZ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
DQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVW
3DWLHQWVZLOOEHHYDOXDWHGIRUDQ\$(VRFFXUULQJXSWRGD\VDIWHUWKHODVWGRVHRIVWXG\GUXJRULQLWLDWLRQ
RIQHZDQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVWDOOVHYHULW\JUDGHVSHU1DWLRQDO&DQFHU,QVWLWXWH
&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV>1&,&7&$(@YDQGDOOLPPXQHUHODWHGDGYHUVH
HYHQWVLU$(VRFFXUULQJXSWRGD\VDIWHUWKHODVWGRVHRIVWXG\GUXJUHJDUGOHVVRIZKHWKHURUQRWWKH
SDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\$OOGUXJUHODWHG6$(VZLOOEHUHFRUGHGE\WKHLQYHVWLJDWRUDIWHU
WUHDWPHQWGLVFRQWLQXDWLRQ
'XUDWLRQRI3DWLHQW3DUWLFLSDWLRQ
7RWDOGXUDWLRQRIVWXG\SDUWLFLSDWLRQZLOOYDU\E\SDWLHQW
6WXG\3RSXODWLRQ
.H\(OLJLELOLW\&ULWHULD
7KHSRSXODWLRQXQGHUVWXG\LVDGXOWSDWLHQWV\HDUVRIDJHRQWKHGD\WKHSDWLHQWYROXQWDULO\DJUHHVWR
SDUWLFLSDWHLQWKHVWXG\RUDFFHSWDEOHDJHDFFRUGLQJWRORFDOUHJXODWLRQVZLWKKLVWRORJLFDOO\FRQILUPHG
+&&WKDWLVFODVVLILHGDV%DUFHORQD&OLQLF/LYHU&DQFHU%&/&6WDJH&GLVHDVHRU%&/&6WDJH%GLVHDVH
WKDWLVQRWDPHQDEOHWRRUKDVUHODSVHGDIWHUORFRUHJLRQDOWKHUDS\DQGLVQRWDPHQDEOHWRDFXUDWLYH
WUHDWPHQWDSSURDFKDQGKDVUHFHLYHGDWOHDVWOLQHRIV\VWHPLFWKHUDS\IRUXQUHVHFWDEOH+&&PXVWKDYH
SURJUHVVHGRQRULVLQWROHUDQWWRLQWKHILUVWOLQHVHWWLQJHLWKHUVRUDIHQLEFKHPRWKHUDS\RUDQ
H[SHULPHQWDOWKHUDS\WKDWKDVGHPRQVWUDWHGHIILFDF\LQD3KDVHVWXG\>HJOHQYDWLQLE@3DWLHQWVPD\QRW
KDYHSDUWLFLSDWHGLQDSULRU%HL*HQHFOLQLFDOWULDOIRUWKHWUHDWPHQWRI+&&$OOSDWLHQWVDUHDOVRUHTXLUHG
WREH&KLOG3XJK&ODVV$KDYHPHDVXUDEOHOHVLRQSHU5(&,67YDQGKDYHDQ(DVWHUQ&RRSHUDWLYH
2QFRORJ\*URXS3HUIRUPDQFH6WDWXVVFRUHRI$UFKLYDOWXPRUWLVVXHVLIDYDLODEOHZLOOEHUHTXLUHG
IRUELRPDUNHUDQDO\VLVDWDFHQWUDOODERUDWRU\
7HVW3URGXFW'RVHDQG0RGHRI$GPLQLVWUDWLRQ
%*%$ZLOOEHDGPLQLVWHUHGDWDGRVHRIPJ,94:
5HIHUHQFH7KHUDS\'RVHDQG0RGHRI$GPLQLVWUDWLRQ
1RWDSSOLFDEOH
6WDWLVWLFDO0HWKRGV
3RSXODWLRQV
7KH6DIHW\3RSXODWLRQ6$)LQFOXGHVDOOSDWLHQWVZKRKDYHUHFHLYHGDQ\GRVHRI%*%$,WZLOOEH
WKHSULPDU\SRSXODWLRQIRUHIILFDF\DQGVDIHW\DQDO\VLV
7KH(IILFDF\(YDOXDEOH3RSXODWLRQ())LQFOXGHVDOOVXEMHFWVLQWKH6$)ZLWKPHDVXUDEOHGLVHDVHDW
EDVHOLQHSHU5(&,67ZKRKDGDWOHDVWRQHHYDOXDEOHSRVWEDVHOLQHWXPRUDVVHVVPHQWXQOHVV
GLVFRQWLQXHGGXHWRFOLQLFDOGLVHDVHSURJUHVVLRQRUGHDWKZLWKLQZHHNVRIWKHILUVWGRVHGDWH
7KH3.SRSXODWLRQ3.LQFOXGHVVXEMHFWVZKRFRQWULEXWHGDWOHDVWSRVWGRVHTXDQWLILDEOH3.VDPSOH
3ULPDU\(IILFDF\$QDO\VHV
+\SRWKHVLVWHVWLQJRI255SHU,5&LQWKH6$)ZLOOEHWKHSULPDU\HIILFDF\DQDO\VLV(IILFDF\HQGSRLQWV
EDVHGRQLQYHVWLJDWRUDVVHVVHGWXPRUUHVSRQVHZLOOEHSUHVHQWHGDVWKHVHFRQGDU\HIILFDF\DQDO\VHV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7KH255RI%*%$SHU,5&LVDVVXPHGDVLQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&
7KHKLVWRULFDOUDWHLQDVLPLODUSRSXODWLRQLVHVWLPDWHGDV%UXL[HWDO7KHQXOODQGDOWHUQDWLYH
K\SRWKHVHVDUHVHWDVIROORZV




+255 




+D255
$ELQRPLDOH[DFWWHVWZLOOEHSHUIRUPHGIRUK\SRWKHVLVWHVWLQJ,IWKHREWDLQHGRQHVLGHGSYDOXHLV
LWZLOOEHFRQFOXGHGWKDW%*%$PRQRWKHUDS\VWDWLVWLFDOO\VLJQLILFDQWO\LQFUHDVHV255
FRPSDUHGZLWKKLVWRULFDOFRQWURO7KHUHIRUHWKHVXSHULRULW\RI%*%$PRQRWKHUDS\ZLOOEH
GHPRQVWUDWHG$WZRVLGHGELQRPLDOH[DFWFRQILGHQFHLQWHUYDO&,RI255ZLOOEHFRQVWUXFWHGWR
DVVHVVWKHSUHFLVLRQRIWKHUDWHHVWLPDWH
7KHSULPDU\HIILFDF\DQDO\VLVZLOOEHFRQGXFWHGZKHQPDWXUHUHVSRQVHUDWHGDWDKDYHEHHQREVHUYHG
DQWLFLSDWHGDVQRPRUHWKDQPRQWKVDIWHUWKHODVWVXEMHFWUHFHLYHGWKHILUVWGRVHRIVWXG\GUXJ,QFDVHRI
VLJQLILFDQWHQUROOPHQWGHOD\LQWKHVHFRQGOLQHRUWKLUGOLQHRUPRUHSRSXODWLRQDVXESRSXODWLRQIRFXVHG
DQDO\VLVPD\EHSHUIRUPHGRQFHDJLYHQSRSXODWLRQKDVUHDFKHGLWVHQUROOPHQWWDUJHW
6HFRQGDU\(IILFDF\$QDO\VHV
2WKHUWXPRUDVVHVVPHQWRXWFRPHVSHU,5&RULQYHVWLJDWRUZLOOEHVXPPDUL]HGDVZHOODV26DVVHFRQGDU\
HIILFDF\DQDO\VLV
7KH.DSODQ0HLHU.0PHWKRGZLOOEHXVHGWRHVWLPDWHWKHNH\VHFRQGDU\HQGSRLQW'25DQG
FRUUHVSRQGLQJTXDQWLOHVLQFOXGLQJWKHPHGLDQLIHVWLPDEOHLQWKHUHVSRQGHUV$WZRVLGHG&,VRI
PHGLDQLIHVWLPDEOHZLOOEHFRQVWUXFWHGZLWKDJHQHUDOL]HG%URRNPH\HUDQG&URZOH\PHWKRG
%URRNPH\HUDQG&URZOH\
7KH'25FHQVRULQJUXOHZLOOIROORZWKH)'$*XLGDQFHIRU,QGXVWU\&OLQLFDO7ULDO(QGSRLQWVIRUWKH
$SSURYDORI&DQFHU'UXJVDQG%LRORJLFV)'$&HQVRULQJUXOHVIROORZLQJWKH(XURSHDQ
0HGLFLQHV$JHQF\*XLGHOLQHRQWKH(YDOXDWLRQRI$QWLFDQFHU0HGLFLQDO3URGXFWVLQ0DQ(0$
ZLOOEHXVHGDVDVHQVLWLYLW\DQDO\VLV
2WKHUWLPHWRHYHQWYDULDEOHV3)6DQG26ZLOOEHVLPLODUO\DQDO\]HGLQWKH6$)XVLQJWKH.0PHWKRGDV
GHVFULEHGDERYH7KH.0HVWLPDWHVRI3)6DQG26ZLOOEHSORWWHGRYHUWLPH7KH3)6WLPHSRLQW
HVWLPDWHVGHILQHGDVWKHSHUFHQWDJHVRISDWLHQWVLQWKHDQDO\VLVVHWZKRUHPDLQDOLYHDQGSURJUHVVLRQIUHH
DWWKHVSHFLILHGWLPHSRLQWVLHRUPRQWKZLOOEHHVWLPDWHGXVLQJWKH.0PHWKRGDORQJZLWKWKH
FRUUHVSRQGLQJ&,FRQVWUXFWHGXVLQJ*UHHQZRRG¶VIRUPXOD*UHHQZRRG7KH26WLPHSRLQW
HVWLPDWHVZLOOEHFDOFXODWHGVLPLODUO\
%LQRPLDOH[DFW&,RI'&5DQG&%5ZLOOEHFDOFXODWHGLQWKH6$)
6DIHW\$QDO\VHV
%*%$H[SRVXUHZLOOEHVXPPDUL]HGE\QXPEHURIF\FOHVUHFHLYHGGXUDWLRQGRVDJHDQGGRVH
LQWHQVLW\
9HUEDWLP$(WHUPVZLOOEHPDSSHGWRWKHFRUUHVSRQGLQJ0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
0HG'5$3UHIHUUHG7HUPVDQGJUDGHGSHU1&,&7&$(Y$OOWUHDWPHQWHPHUJHQWDGYHUVHHYHQWV
7($(VZLOOEHVXPPDUL]HG$7($(LVGHILQHGLQWKLVSURWRFRODVDQ\$(ZLWKHLWKHUDQRQVHWGDWHRUD
GDWHRIZRUVHQLQJLQVHYHULW\IURPEDVHOLQHLHSUHWUHDWPHQWRFFXUULQJRQRUDIWHUILUVWGRVHRIVWXG\GUXJ
DQGXSWRHLWKHUGD\VIROORZLQJGLVFRQWLQXDWLRQIURPVWXG\GUXJRUVWDUWRIQHZDQWLFDQFHUWKHUDS\7KH
7($(FODVVLILFDWLRQDOVRDSSOLHVWRDOOLU$(V%*%$RQO\DQGUHODWHGVHULRXV$(VWKDWDUHUHFRUGHG
XSWRGD\VDIWHUGLVFRQWLQXDWLRQIURP%*%$UHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZ
DQWLFDQFHUWKHUDS\
2QO\WKRVH$(VWKDWZHUHWUHDWPHQWHPHUJHQWZLOOEHLQFOXGHGLQVXPPDU\WDEOHV$OO$(VWUHDWPHQW
HPHUJHQWRURWKHUZLVHZLOOEHSUHVHQWHGLQSDWLHQWGDWDOLVWLQJV$OO6$(VGHDWKV7($(VRI*UDGH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
VHYHULW\7($(VDVVHVVHGE\WKHLQYHVWLJDWRUDVWUHDWPHQWUHODWHGLU$(VDQG7($(VOHDGLQJWRWUHDWPHQW
GLVFRQWLQXDWLRQGRVHLQWHUUXSWLRQRUGRVHGHOD\ZLOOEHVXPPDUL]HG,QDOO$(VXPPDU\WDEOHVPXOWLSOH
RFFXUUHQFHVRIWKHVDPH$(ZLOOEHFRXQWHGRQFHDWWKHPD[LPXPVHYHULW\JUDGHZLWKLQDSDUWLFXODU
0HG'5$V\VWHPRUJDQFODVVDQGSUHIHUUHGWHUP
$OOFOLQLFDOODERUDWRU\DQGYLWDOVLJQDVVHVVPHQWVZLWKYDOXHVRXWVLGHWKHQRUPDOUDQJHVZLOOEHLGHQWLILHG
([SORUDWRU\$QDO\VHV
7KHSULPDU\SUHGLFWLYHELRPDUNHUDQDO\VLVLVEDVHGRQDVXEVHWRIWKHSDWLHQWVZLWKERWKDYDOLG3'/
H[SUHVVLRQDQGRUWXPRULQILOWUDWLQJO\PSKRF\WHV7,/VPHDVXUHPHQWDQGDWOHDVWRQHGLVHDVHDVVHVVPHQW
SRVWWUHDWPHQW$VXSSRUWLYHDQDO\VLVLVEDVHGRQSDWLHQWVZLWKDYDOLG3'/H[SUHVVLRQDQGRU7,/V
PHDVXUHPHQWLUUHVSHFWLYHRIWKHDYDLODELOLW\RISRVWWUHDWPHQWGLVHDVHDVVHVVPHQWV,QWKLVDQDO\VLVWKRVH
ZLWKRXWSRVWWUHDWPHQWGLVHDVHDVVHVVPHQWVZLOOEHLPSXWHGZLWKWKHZRUVWRXWFRPHLQWXPRUUHVSRQVH
([SORUDWRU\DQDO\VHVRIRWKHUFDQGLGDWHSUHGLFWLYHELRPDUNHUVLQFOXGLQJEXWQRWOLPLWHGWRJHQH
H[SUHVVLRQSURILOLQJZLOOEHFRQGXFWHGVLPLODUO\
6DPSOH6L]H&RQVLGHUDWLRQV
7KH255SHU,5&LVDVVXPHGDVLQWKLVWULDO:LWKSDWLHQWVWKHSRZHULVWRGHPRQVWUDWHWKH
255LQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&LVVWDWLVWLFDOO\KLJKHUWKDQWKHKLVWRULFDOUDWHRI
LQDELQRPLDOH[DFWWHVW7KH&,RIDQREVHUYHG255LVZKHQ
DSSUR[LPDWHO\SUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&SDWLHQWVDUHHQUROOHG:LWKLQQGOLQHRUUGOLQH
SOXVSDWLHQWVWKH&,RIWKHVDPH255LVZKHQQ LQHDFKSRSXODWLRQ



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
/,672)$%%5(9,$7,216$1'7(506
$EEUHYLDWLRQ
'HILQLWLRQ
$$6/'
$PHULFDQ$VVRFLDWLRQIRUWKH6WXG\RI/LYHU'LVHDVH
$'$
DQWLGUXJDQWLERG\
$'&&
DQWLERG\GHSHQGHQWFHOOXODUF\WRWR[LFLW\
$'&3
DQWLERG\GHSHQGHQWFHOOXODUSKDJRF\WRVLV
$'/
DFWLYLWLHVRIGDLO\OLYLQJ
$(
DGYHUVHHYHQW
$/7
DODQLQHDPLQRWUDQVIHUDVH
$1&
DEVROXWHQHXWURSKLOFRXQW
D377
DFWLYDWHGSDUWLDOWKURPERSODVWLQWLPH
$67
DVSDUWDWHDPLQRWUDQVIHUDVH
$8&
DUHDXQGHUWKHSODVPDFRQFHQWUDWLRQWLPHFXUYH
%&/&
%DUFHORQD&OLQLF/LYHU&DQFHU
%25
EHVWRYHUDOOUHVSRQVH
&%5
FOLQLFDOEHQHILWUDWH
&,
FRQILGHQFHLQWHUYDO
&PD[
PD[LPXPREVHUYHGSODVPDFRQFHQWUDWLRQ
&WURXJK
WURXJKVHUXPFRQFHQWUDWLRQGDWD
&3
&KLOG3XJK
&36
F\FOHVSHUVHFRQG
&5
FRPSOHWHUHVSRQVH
&65
FOLQLFDOVWXG\UHSRUW
&7
FRPSXWHGWRPRJUDSK\
'&5
GLVHDVHFRQWUROUDWH
'1$
GHR[\ULERQXFOHLFDFLG
'25
GXUDWLRQRIUHVSRQVH
(&*
HOHFWURFDUGLRJUDP
(&2*
(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS
H&5)
HOHFWURQLFFDVHUHSRUWIRUP
('&
HOHFWURQLFGDWDFDSWXUHV\VWHP
())
(IILFDF\(YDOXDEOH3RSXODWLRQ
H*)5
HVWLPDWHGJORPHUXODUILOWUDWLRQUDWH
(0$
(XURSHDQ0HGLFLQHV$JHQF\
(4'/
OHYHOYHUVLRQRI(XURSHDQ4XDOLW\RI/LIH'LPHQVLRQDO4XHVWLRQQDLUH
(257&4/4&
(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XDOLW\RI/LIH
4XHVWLRQQDLUH&RUH
(257&4/4+&&
(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XDOLW\RI/LIH
4XHVWLRQQDLUH+HSDWRFHOOXODU&DUFLQRPD4XHVWLRQV
(602
(XURSHDQ6RFLHW\IRU0HGLFDO2QFRORJ\
)F
IUDJPHQWFU\VWDOOL]DEOHUHJLRQW\SLFDOO\RILPPXQRJOREXOLQ*
)FȖ5
JDPPD)FUHFHSWRUHJ)FȖ5,)FȖ5,,,
)'$
)RRGDQG'UXJ$GPLQLVWUDWLRQ
)'*
IOXRURGHR[\JOXFRVH
*&3
*RRG&OLQLFDO3UDFWLFH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$EEUHYLDWLRQ
'HILQLWLRQ
+%F$E
KHSDWLWLV%FRUHDQWLERG\
+%V$J
KHSDWLWLV%VXUIDFHDQWLJHQ
+%9
KHSDWLWLV%YLUXV
+&&
KHSDWRFHOOXODUFDUFLQRPD
+&9
KHSDWLWLV&YLUXV
+54R/
KHDOWKUHODWHGTXDOLW\RIOLIH
,&)
LQIRUPHGFRQVHQWIRUP
,&+
,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ
,&8
,QWHQVLYH&DUH8QLW
,(&
,QGHSHQGHQW(WKLFV&RPPLWWHH
,)1Į
,QWHUIHURQDOSKD
,J*
LPPXQRJOREXOLQ*HJ,J*,J*,J*,J*RWKHUW\SHVRI
LPPXQRJOREXOLQVLQFOXGH,J'DQG,J0
,03
LQYHVWLJDWLRQDOPHGLFLQDOSURGXFW
,1'
,QYHVWLJDWLRQDO1HZ'UXJ
,15
LQWHUQDWLRQDOQRUPDOL]HGUDWLR
LU$(
LPPXQHUHODWHGDGYHUVHHYHQW
,5%
,QVWLWXWLRQDO5HYLHZ%RDUG
,5&
,QGHSHQGHQW5HYLHZ&RPPLWWHH
,9
LQWUDYHQRXVO\
.0
.DSODQ0HLHU
/)7
OLYHUIXQFWLRQWHVW
0HG'5$
0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
05,
PDJQHWLFUHVRQDQFHLPDJLQJ
07'
PD[LPXPWROHUDWHGGRVH
1&,&7&$(
1DWLRQDO&DQFHU,QVWLWXWH&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV
16$,'
QRQVWHURLGDODQWLLQIODPPDWRU\GUXJ
1<+$
1HZ<RUN+HDUW$VVRFLDWLRQ
255
REMHFWLYHUHVSRQVHUDWH
26
RYHUDOOVXUYLYDO
3'
SURJUHVVLYHGLVHDVH
3'
SURJUDPPHGFHOOGHDWKSURWHLQ
3'/
SURJUDPPHGFHOOGHDWKSURWHLQOLJDQG
3'/
SURJUDPPHGFHOOGHDWKSURWHLQOLJDQG
3(7
SRVLWURQHPLVVLRQWRPRJUDSK\
3)6
SURJUHVVLRQIUHHVXUYLYDO
3.
SKDUPDFRNLQHWLFV
35
SDUWLDOUHVSRQVH
36
SHUIRUPDQFHVWDWXV
37
SURWKURPELQWLPH
4:
HYHU\ZHHNV
4:
HYHU\ZHHNV
5(&,67
5HVSRQVH(YDOXDWLRQ&ULWHULDLQ6ROLG7XPRUV
51$
ULERQXFOHLFDFLG
6$(
VHULRXVDGYHUVHHYHQW
6$)
6DIHW\3RSXODWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$EEUHYLDWLRQ
'HILQLWLRQ
6'
VWDEOHGLVHDVH
62&
V\VWHPRUJDQFODVV
686$5
VXVSHFWHGXQH[SHFWHGVHULRXVDGYHUVHUHDFWLRQ
7
KDOIOLIH
7$&(
WUDQVDUWHULDOFKHPRHPEROL]DWLRQ
7($(
WUHDWPHQWHPHUJHQWDGYHUVHHYHQW
7,/
WXPRULQILOWUDWLQJO\PSKRF\WHV
8/1
XSSHUOLPLWRIQRUPDO
Y
YHUVLRQ




%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

,1752'8&7,21

+HSDWRFHOOXODU&DUFLQRPD
+HSDWRFHOOXODUFDUFLQRPD+&&LVDPDMRUJOREDOKHDOWKSUREOHPDFFRXQWLQJIRURIDOOUHSRUWHG
FDVHVRIOLYHUFDQFHUDWHUPZLWKZKLFK+&&LVRIWHQXVHGLQWHUFKDQJHDEO\(O6HUDJO$FFRUGLQJWR
WKH:RUOG+HDOWK2UJDQL]DWLRQ¶V*/2%2&$1GDWDEDVHOLYHUFDQFHUZDVWKHVL[WKPRVWFRPPRQW\SH
RIFDQFHUWKDW\HDUZLWKQHZFDVHVZRUOGZLGHLWZDVDOVRWKHVHFRQGPRVWFRPPRQFDXVHRI
FDQFHUUHODWHGPRUWDOLW\UHVSRQVLEOHIRUDQHVWLPDWHGGHDWKV7RUUHHWDO
0RVW+&&FDVHV!RFFXULQ(DVWHUQ$VLDDQGLQVXE6DKDUDQ$IULFDZLWKW\SLFDOLQFLGHQFHUDWHVRI
!SHULQGLYLGXDOV&KLQDDORQHDFFRXQWVIRUDSSUR[LPDWHO\RIERWKQHZ+&&FDVHVDQG
+&&UHODWHGGHDWKVZRUOGZLGH7RUUHHWDO6RXWKHUQ(XURSHDQFRXQWULHVVXFKDV6SDLQ,WDO\DQG
*UHHFHWHQGWRKDYHPRUHPRGHUDWHLQFLGHQFHUDWHVaWRSHULQGLYLGXDOVZKHUHDV1RUWK
$PHULFD6RXWK$PHULFD1RUWKHUQ(XURSHDQG2FHDQLDKDYHDUHODWLYHO\ORZLQFLGHQFHRI+&&SHU
LQGLYLGXDOV(O6HUDJ
$YDULHW\RIULVNIDFWRUVDUHNQRZQWREHFDXVDWLYHIRU+&&7KHVHLQFOXGHLQIHFWLRQZLWKKHSDWLWLVYLUXVHV
DIODWR[LQ%WREDFFRYLQ\OFKORULGHKHDY\DOFRKROLQWDNHQRQDOFRKROLFIDWW\OLYHUGLVHDVH
KHPRFKURPDWRVLVDQGGLDEHWHV7RJHWKHUKHSDWLWLV%YLUXV+%9DQGKHSDWLWLV&YLUXV+&9DFFRXQWIRU
RIDOO+&&FDVHVZRUOGZLGH%RVFKHWDO&KURQLF+%9LQIHFWLRQLVWKHGRPLQDQWULVNIDFWRU
IRUWKHGLVHDVHLQPRVWDUHDVRI$VLDZLWKWKHH[FHSWLRQRI-DSDQ(O6HUDJZKLOHFKURQLFLQIHFWLRQ
ZLWK+&9LVWKHOHDGLQJFDXVHRI+&&LQ:HVWHUQFRXQWULHVDQGLQ-DSDQ&KRRHWDO
7UHDWPHQWRSWLRQVIRU+&&DUHEDVHGRQWKHVWDJHRIWKHGLVHDVHDWGLDJQRVLVSHUWKH%DUFHORQD&OLQLF/LYHU
&DQFHU%&/&FODVVLILFDWLRQV\VWHPZKLFKGUDZVIURPDFRPELQDWLRQRI(DVWHUQ&RRSHUDWLYH2QFRORJ\
*URXS(&2*3HUIRUPDQFH6WDWXV36$SSHQGL[&KLOG3XJK&3FODVVLILFDWLRQFULWHULDIRUOLYHU
IXQFWLRQ$SSHQGL[DQGH[WHQWRIGLVHDVH/ORYHWHWDOWRGHILQHGLVHDVHVWDJLQJIRU+&&
$SSUR[LPDWHO\RI+&&FDVHVDUHGLDJQRVHGDWWKHHDUO\VWDJHVLH%&/&VWDJHVRU$DQGDUH
DPHQDEOHWRSRWHQWLDOO\FXUDWLYHWUHDWPHQWVLQFOXGLQJOLYHUWUDQVSODQWDWLRQUHVHFWLRQRUORFRUHJLRQDO
SURFHGXUHVVXFKDVUDGLRIUHTXHQF\DEODWLRQDQGSHUFXWDQHRXVHWKDQROLQMHFWLRQ+RZHYHUWKHUHLVDKLJKUDWH
RI+&&UHFXUUHQFHZLWKLQ\HDUV2LNRQRPRSRXORVHWDO
,QLQWHUPHGLDWHVWDJH+&&LH%&/&6WDJH%WUDQVDUWHULDOFKHPRHPEROL]DWLRQ7$&(LVWKH
UHFRPPHQGHGWUHDWPHQWPRGDOLW\+DQHWDOIRUWKHVHSDWLHQWVEXWWKHGDWDDUHGLIILFXOWWRLQWHUSUHWLQ
WKHFRQWH[WRI%&/&VWDJLQJWKHGDWDVXSSRUWLQJWKHUHFRPPHQGDWLRQZHUHQRWFDWHJRUL]HGDFFRUGLQJWR
%&/&FODVVLILFDWLRQ+DQHWDO1RQHWKHOHVVSDWLHQWVGRSURJUHVVDIWHU7$&(WUHDWPHQWDQGEHFRPH
LQHOLJLEOHIRUIXUWKHU7$&(WKHUDS\
)RUSDWLHQWVZLWKDGYDQFHGGLVHDVHLH%&/&6WDJH&VRUDIHQLEDPXOWLWDUJHWHGW\URVLQHNLQDVHLQKLELWRU
LVWKHRQO\JOREDOO\DSSURYHGV\VWHPLFWKHUDS\IRUILUVWOLQH+&&.HDWLQJHWDO5HJRUDIHQLEZDV
UHFHQWO\DSSURYHGLQNH\JOREDOUHJLRQVIRUWKHWUHDWPHQWRIVHFRQGOLQH+&&LQFOXGLQJWKH8QLWHG6WDWHV
86WKH(XURSHDQ8QLRQDQG-DSDQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

&XUUHQW7UHDWPHQWRI+HSDWRFHOOXODU&DUFLQRPD
7KHPDMRULW\DSSUR[LPDWHO\RISDWLHQWVGLDJQRVHGZLWK+&&SUHVHQWZLWKXQUHVHFWDEOHGLVHDVH
0D]]DIHUURHWDO,QVRUDIHQLEDPXOWLNLQDVHLQKLELWRUZDVDSSURYHGE\WKH86)RRGDQG
'UXJ$GPLQLVWUDWLRQ)'$IRUXVHLQWKLVSDWLHQWSRSXODWLRQ,WLQKLELWVPXOWLSOHLQWUDFHOOXODU&5$)
%5$)DQGFHOOVXUIDFHNLQDVHV.,7)/75(79(*)5DQG3'*)5EZKLFKLPSHGHWXPRU
JURZWKDQGDQJLRJHQHVLV7KHFOLQLFDOHIILFDF\RIVRUDIHQLELQWKH+&&SDWLHQWSRSXODWLRQKDVEHHQZHOO
GRFXPHQWHGLQNH\VWXGLHV%DORJKHWDO&KHPRWKHUDS\KDVDOVREHHQXVHGLQWKHWUHDWPHQWRI
+&&LQFHUWDLQUHJLRQVJOREDOO\7KH($&+VWXG\GHPRQVWUDWHGDVXSHULRURYHUDOOVXUYLYDO26IRUD
)2/)2;UHJLPHQR[DOLSODWLQIOXRURXUDFLODQGOHXFRYRULQFRPSDUHGZLWKGR[RUXELFLQDORQHLQSDWLHQWV
ZLWKDGYDQFHG+&&ZLWKDPHGLDQ26RIPRQWKVFRQILGHQFHLQWHUYDO>&,@LQWKHVWXG\
DUP4LQHWDO
3DWLHQWVZLWKXQUHVHFWDEOHSUHYLRXVO\WUHDWHG+&&UHSUHVHQWDSRSXODWLRQZLWKDJUHDWXQPHWPHGLFDOQHHG
2YHUDOOVXUYLYDOLQWKLVSDWLHQWSRSXODWLRQLVOLPLWHGW\SLFDOO\PRQWKVRUOHVV%H\RQGVRUDIHQLERU
FKHPRWKHUDS\KRZHYHUWKHUHLVQRUHFRJQL]HGWUHDWPHQWVWDQGDUG5HFHQWO\SXEOLVKHGLQ'HFHPEHUD
JOREDOVWXG\RIUHJRUDIHQLELQDGYDQFHG+&&5(625&(WULDO%UXL[HWDOVKRZHGDQLPSURYHG
PHGLDQ26LQSDWLHQWVZLWKGLVHDVHSURJUHVVLRQIROORZLQJVRUDIHQLEWUHDWPHQWZKLFKZDVPRQWKV
&,FRPSDUHGZLWKSODFHERPRQWKV&,*LYHQWKHSRRUSDWLHQWRXWFRPHV
RIVWDQGDUGRIFDUHWUHDWPHQWVFOLQLFDOWULDOVDUHRIWHQJLYHQDVDOWHUQDWLYHWUHDWPHQW,QYHVWLJDWLRQDODJHQWV
LQFOXGHEXWDUHQRWOLPLWHGWROHQYDWLQLELQWKHILUVWOLQHVHWWLQJZKHUHLWGHPRQVWUDWHGQRQLQIHULRU26
FRPSDUHGWRVRUDIHQLE&KHQJHWDODQGFDER]DQWLQLELQWKHVHFRQGOLQHVHWWLQJZKHUHDSRVLWLYHVWXG\
RXWFRPHZDVUHFHQWO\DQQRXQFHGE\WKHFRPSDQ\,SVHQ3UHVV5HOHDVH5HJDUGOHVVVXUYLYDOUHPDLQV
SRRUDQGDGGLWLRQDOWKHUDSHXWLFRSWLRQVDUHWKHUHIRUHUHTXLUHGIRUWKHVHFRQGOLQHVHWWLQJDQGEH\RQG

$QWL3'$QWL3'/7KHUDS\IRU$GYDQFHG+HSDWRFHOOXODU&DUFLQRPD
7KHLPPXQHFKHFNSRLQWLQKLELWRU\UHFHSWRUNQRZQDVSURJUDPPHGFHOOGHDWKSURWHLQ3'LVPDLQO\
H[SUHVVHGLQDFWLYDWHG7FHOOV7RSDOLDQHWDO%HUVDQHOOLHWDO7KH3'VLJQDOLQJFDVFDGH
QHJDWLYHO\UHJXODWHV7FHOOUHFHSWRUDFWLYLWLHVZKLOHDWWHQXDWLQJ7FHOOSUROLIHUDWLRQDQGIXQFWLRQZLWKWKH
XOWLPDWHFRQVHTXHQFHRI7FHOOH[KDXVWLRQ
7KHH[SUHVVLRQRI3'LVPDUNHGO\XSUHJXODWHGLQWXPRULQILOWUDWLQJO\PSKRF\WHVDQGWKHH[SUHVVLRQRI
SURJUDPPHGFHOOGHDWKSURWHLQOLJDQG3'/LVVLJQLILFDQWO\LQFUHDVHGLQWXPRUFHOOVDQG
WXPRUDVVRFLDWHGLPPXQHFHOOVLQWKHSUHVHQFHRIVWLPXODWLQJF\WRNLQHVHJLQWHUIHURQDOSKD>,)1Į@DQG
LQWHUIHURQJDPPD>,)1Ȗ@LQWKHWXPRUPLFURHQYLURQPHQW)XUWKHUPRUHLQFUHDVHG3'H[SUHVVLRQLQ
WXPRULQILOWUDWLQJO\PSKRF\WHVDQGRU3'/H[SUHVVLRQLQWXPRUFHOOVDQGWXPRUDVVRFLDWHGVWURPDOFHOOV
KDYHEHHQREVHUYHGLQPDQ\W\SHVRIVROLGWXPRUV-LQHWDO2QRHWDO3DWHOHWDO9DQ'HU
.UDDNHWDO0F'DQLHOHWDO*RQJHWDO
7KHVHGDWDSURYLGHDEDVLVIRUWKHXVHRI3'DQWDJRQLVWVDVLPPXQRRQFRORJLFDJHQWV7KHWKHUDSHXWLF
DSSURDFKRIEORFNLQJ3'DQG3'/LQWHUDFWLRQVKDVUHFHQWO\GHPRQVWUDWHGHIILFDF\LQDYDULHW\RIWXPRU
W\SHV0RQRFORQDODQWLERGLHVWR3'VXFKDVQLYROXPDEDQGSHPEUROL]XPDEKDYHWKHDELOLW\WRELQGWR
3'WKXVGLVUXSWLQJLQWHUDFWLRQVEHWZHHQWKHSURWHLQDQGLWVOLJDQGV3'/DQGSURJUDPPHGFHOOGHDWK


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
SURWHLQOLJDQG>3'/@DQGLPSHGLQJLQKLELWRU\VLJQDOVLQWKH7FHOOPLFURHQYLURQPHQW:DQJHWDO
7KHVHPRQRFORQDODQWLERGLHVKDYHQRZEHHQDSSURYHGIRUWKHWUHDWPHQWRIVHYHUDOFDQFHUVLQFOXGLQJ
EODGGHUOXQJKHDGDQGQHFNVTXDPRXVFHOOFDUFLQRPDVDVZHOODVPHODQRPDLQWKH86(XURSHDQG
EH\RQG
5HFHQWO\SXEOLVKHGUHVXOWVIURPDQRQJRLQJRSHQODEHO3KDVHEVWXG\RIQLYROXPDELQSDWLHQWVZLWK
DGYDQFHG+&&³&KHFN0DWH´(O.KRXHLU\HWDOLQFOXGHDQREMHFWLYHUHVSRQVHUDWH255RI
&,LQSDWLHQWVWUHDWHGLQWKHVWXG\¶VGRVHH[SDQVLRQSKDVH7KHPHGLDQGXUDWLRQRI
UHVSRQVH'25IRUDOOSDWLHQWVLQWKHGRVHHVFDODWLRQSKDVHZDVPRQWKVDQGWKHPRQWK26UDWHZDV
&,7KHVHUHVXOWVDUHYHU\SURPLVLQJDQGVXJJHVWWKHSRWHQWLDOHIILFDF\RIDQWL3'
DQWLERGLHVDVWKHUDSLHVIRUSDWLHQWVZLWKDGYDQFHGVWDJHRURWKHUZLVHGLIILFXOWWRWUHDW+&&7KH86)'$
UHFHQWO\JUDQWHGDFFHOHUDWHGDSSURYDORIQLYROXPDEIRUWKHWUHDWPHQWRI+&&SUHYLRXVO\WUHDWHGZLWK
VRUDIHQLE)'$3UHVV5HOHDVH

%DFNJURXQG,QIRUPDWLRQRQ7LVOHOL]XPDE%*%$

3KDUPDFRORJ\
7LVOHOL]XPDE%*%$LVDKXPDQL]HGLPPXQRJOREXOLQ*,J*YDULDQWPRQRFORQDODQWLERG\DJDLQVW
3'XQGHUFOLQLFDOGHYHORSPHQWIRUWKHWUHDWPHQWRIVHYHUDOKXPDQPDOLJQDQFLHV
%*%$DFWVE\ELQGLQJWRWKHH[WUDFHOOXODUGRPDLQRIKXPDQ3'ZLWKKLJKVSHFLILFLW\DVZHOODVKLJK
DIILQLW\.' Q0,WFRPSHWLWLYHO\EORFNVELQGLQJHIIRUWVE\ERWK3'/DQG3'/WKXVLQKLELWLQJ
3'PHGLDWHGQHJDWLYHVLJQDOLQJLQ7FHOOV,QLQYLWURFHOOEDVHGDVVD\V%*%$ZDVREVHUYHGWR
FRQVLVWHQWO\DQGGRVHGHSHQGHQWO\HQKDQFHWKHIXQFWLRQDODFWLYLW\RIKXPDQ7FHOOVDQGSUHDFWLYDWHG
SULPDU\SHULSKHUDOEORRGPRQRQXFOHDUFHOOV,QDGGLWLRQ%*%$KDVGHPRQVWUDWHGDQWLWXPRUDFWLYLW\LQ
VHYHUDODOORJHQHLF[HQRJUDIWPRGHOVLQZKLFKSHULSKHUDOEORRGPRQRQXFOHDUFHOOZHUHFRLQMHFWHGZLWK
KXPDQFDQFHUFHOOV$>HSLGHUPRLGFDUFLQRPD@RUWXPRUIUDJPHQWV%&&2>FRORQFDQFHU@LQWR
LPPXQRFRPSURPLVHGPLFH
7KH,J*YDULDQWDQWLERG\KDVYHU\ORZELQGLQJDIILQLW\WRJDPPD)FUHFHSWRU)FȖ5,,,$DQG&RPSOHPHQW
TDVXEXQLWRIFRPSOHPHQWE\LQYLWURDVVD\VVXJJHVWLQJHLWKHUORZRUQRDQWLERG\GHSHQGHQWFHOOXODU
F\WRWR[LFLW\$'&&RUFRPSOHPHQWGHSHQGHQWF\WRWR[LFLW\HIIHFWVLQKXPDQV/DEULMQHWDO
3OHDVHUHIHUWRWKH%*%$,QYHVWLJDWRU¶V%URFKXUHIRUDGGLWLRQDOGHWDLOVUHJDUGLQJQRQFOLQLFDOVWXGLHVRI
%*%$

7R[LFRORJ\
7KHWR[LFLW\DQGVDIHW\SURILOHRI%*%$ZDVFKDUDFWHUL]HGLQVLQJOHGRVHWR[LFRORJ\VWXGLHVLQPLFHDQG
PRQNH\VDQGLQDZHHNUHSHDWGRVHWR[LFRORJ\VWXG\LQPRQNH\V7KHWLVVXHFURVVUHDFWLYLW\ZDV
HYDOXDWHGLQWKHQRUPDOIUR]HQWLVVXHVIURPERWKKXPDQVDQGPRQNH\V7KHF\WRNLQHUHOHDVHDVVD\VZHUH
DOVRHYDOXDWHGXVLQJIUHVKKXPDQZKROHEORRGFHOOV7KHSLYRWDOVWXGLHVZHUHFRQGXFWHGIROORZLQJ*RRG
/DERUDWRU\3UDFWLFHUHJXODWLRQV7KHVLQJOHGRVLQJUHJLPHQVZHUHVSDQQLQJIURPWKHLQWHQGHGKXPDQGRVHV
WRIROGKLJKHUWKDQWKHPD[LPXPRIWKHLQWHQGHGKXPDQGRVHVDQGWKHUHSHDWGRVLQJUHJLPHQVVSDQQLQJ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
WRIROGKLJKHUWKDQWKHPD[LPXPRIWKHLQWHQGHGKXPDQGRVHV&\QRPROJXVPRQNH\ZDVWKHRQO\UHOHYDQW
VSHFLHVEDVHGRQWKHWDUJHWVHTXHQFHKRPRORJ\DQGELQGLQJDFWLYLW\
2YHUDOOQRDSSDUHQWWR[LFLW\ZDVQRWHGLQPLFHDQGPRQNH\WR[LFLW\VWXGLHVDWDVLQJOHGRVHXSWR
PJNJ1RWLVVXHFURVVUHDFWLYLW\ZDVIRXQGLQERWKKXPDQDQGPRQNH\WLVVXHVQRUHIIHFWRQF\WRNLQH
UHOHDVHZDVREVHUYHGLQKXPDQZKROHEORRGDVVD\7KH7.SURILOHZDVZHOOFKDUDFWHUL]HGZLWKGRVH
SURSRUWLRQDOO\LQFUHDVHVLQV\VWHPLFH[SRVXUHZLWKRXWDSSDUHQWDFFXPXODWLRQRUVH[GLIIHUHQFH
,PPXQRJHQLFLW\ZDVREVHUYHGZLWKRXWDSSDUHQWLPPXQRWR[LFLW\DQGHIIHFWRQWKHV\VWHPLFH[SRVXUH7KH
1R2EVHUYHG$GYHUVH(IIHFW/HYHORI%*%$LQWKHZHHNPRQNH\WR[LFLW\VWXG\ZDVFRQVLGHUHGWR
EHPJNJ7KHVDIHW\SURILOHRI%*%$LVFRQVLGHUHGDGHTXDWHWRVXSSRUWILUVWLQKXPDQGRVHVDIHO\
DQGHWKLFDOO\
3OHDVHUHIHUWRWKH%*%$,QYHVWLJDWRU¶V%URFKXUHIRUPRUHGHWDLOHGLQIRUPDWLRQRQWKHWR[LFRORJ\RI
%*%$

&OLQLFDO3KDUPDFRORJ\
$QLQWHULPSKDUPDFRNLQHWLF3.DQDO\VLVGDWDFXWRIIGDWHRI2FWREHUZDVFRQGXFWHGE\
QRQFRPSDUWPHQWDODQDO\VLVPHWKRGVXVLQJVHUXPFRQFHQWUDWLRQVIURPSDWLHQWVZKRUHFHLYHGGRVHVRI
%*%$DQGPJNJHYHU\ZHHNV4:DQGSDWLHQWVZKRUHFHLYHGGRVHVRIDQG
PJNJHYHU\ZHHNV4:LQ%*%$B6WXG\B3KDVHDSDUWDQGSDUW7KHPD[LPXP
REVHUYHGSODVPDFRQFHQWUDWLRQ&PD[DQGGUXJH[SRVXUHLHWKHDUHDXQGHUWKHFRQFHQWUDWLRQWLPHFXUYH
>$8&@LQFUHDVHGLQDQHDUO\GRVHSURSRUWLRQDOPDQQHUIURPPJNJWRPJNJERWKDIWHUVLQJOHGRVH
DGPLQLVWUDWLRQDQGDWVWHDG\VWDWH
3RSXODWLRQ3.DQDO\VLVZDVFRQGXFWHGZLWKDFRPSDUWPHQWPRGHOZLWKILUVWRUGHUHOLPLQDWLRQ6\VWHPLF
FOHDUDQFHRI%*%$ZDV/KYROXPHRIGLVWULEXWLRQLQWKHFHQWUDODQGSHULSKHUDOFRPSDUWPHQW
ZHUHDQG/UHVSHFWLYHO\DQGWHUPLQDOHOLPLQDWLRQKDOIOLIH7ZDVDSSUR[LPDWHO\GD\V
3DWLHQWV¶ERG\ZHLJKWLVQRWDVLJQLILFDQWFRYDULDWHRQWKHFOHDUDQFHRI%*%$DILQGLQJWKDWVXSSRUWV
IL[HGGRVLQJRI%*%$

/DFNRI(WKQLF'LIIHUHQFHVLQ([SRVXUH
%DVHGRQWKHLQIRUPDWLRQDYDLODEOHWRGDWH%*%$H[SRVXUHLQ$VLDQDQG&DXFDVLDQSDWLHQWVLVVLPLODU
DQGWKHVDIHW\SURILOHDWFOLQLFDOO\UHOHYDQWGRVHVLVWROHUDEOHDQGPDQDJHDEOH
3UHOLPLQDU\3.GDWDIURP%*%$B6WXG\BDUHVXPPDUL]HGLQ6HFWLRQDERYH&RPSDULVRQRI
3.SDUDPHWHUVLQGLFDWHVWKDWDIWHUDVLQJOH,9LQIXVLRQRI%*%$GRVHQRUPDOL]HGH[SRVXUHZDV
FRQVLVWHQWDFURVV$VLDQQ DQG&DXFDVLDQQ SDWLHQWVLQWKHVWXG\ZKLFKZDVFRQGXFWHGLQWKH86
$XVWUDOLD1HZ=HDODQG.RUHDDQG7DLZDQ$GGLWLRQDOO\GRVHQRUPDOL]HGH[SRVXUHZDVFRQVLVWHQW
EHWZHHQ%*%$B6WXG\BLQZKLFKPRVWSDWLHQWVZHUH&DXFDVLDQQ DQG6WXG\%*%$
FRQGXFWHGLQ&KLQHVHSDWLHQWVQ 
7KHVHSUHOLPLQDU\ILQGLQJVLQGLFDWHWKDWHWKQLFGLIIHUHQFHVDUHXQOLNHO\WRDIIHFWWKHH[SRVXUHRI%*%$


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
)XUWKHUPRUHWKHVHGDWDDUHFRQVLVWHQWZLWKILQGLQJVRIOLPLWHGHWKQLFGLIIHUHQFHVLQVWXGLHVRIWKHUDSHXWLF
PRQRFORQDODQWLERGLHV&KLEDHWDO,QDGGLWLRQWKHUHGRQRWDSSHDUWREHFOLQLFDOO\UHOHYDQW
GLIIHUHQFHVLQ3.H[SRVXUHVIURPVWXGLHVRIRWKHUDQWL3'DQWLERGLHVQLYROXPDEDQGSHPEUROL]XPDE

3ULRU&OLQLFDO([SHULHQFHRI%*%$
7KHUHDUHFXUUHQWO\RQJRLQJVWXGLHVZLWK%*%$LQSDWLHQWVZLWKYDULRXVVROLGWXPRUW\SHV
3UHOLPLQDU\GDWDLVRQO\DYDLODEOHIURP%*%$B6WXG\BZKLFKDUHVXPPDUL]HGEHORZ
5HIHUWRWKH,QYHVWLJDWRU¶V%URFKXUHIRUPRUHGHWDLOHGLQIRUPDWLRQRQWKHFOLQLFDOH[SHULHQFHRI%*%$
 %*%$B6WXG\B3KDVHD
$VRI-DQXDU\SDWLHQWVZLWKVROLGWXPRUVKDYHEHHQWUHDWHGZLWK%*%$LQ
%*%$B6WXG\BIRUSDUWVDQGFRPELQHG3DWLHQWVKDGUHFHLYHG%*%$WUHDWPHQWLQ
3KDVHDDWGRVHUHJLPHQVLQFOXGLQJPJNJPJNJPJNJRUPJNJ4:PJNJRUPJNJ
4:DQGPJ4:7KHPHGLDQGXUDWLRQRIWUHDWPHQWIRUWKHFRPELQHGVXEMHFWSRSXODWLRQZDVGD\V
UDQJHWRGD\V$PD[LPXPWROHUDWHGGRVH07'KDVQRWEHHQGHWHUPLQHG7KHUHFRPPHQG3KDVH
GRVHZDVHVWDEOLVKHGDVDIL[HGGRVHRIPJ,94:
 %*%$B6WXG\B3KDVHE
$VRI-DQXDU\SDWLHQWVZLWKVROLGWXPRUVKDGUHFHLYHG%*%$WUHDWPHQWLQ3KDVHEDFURVV
H[SDQVLRQFRKRUWVLQ%*%$B6WXG\B7KHPHGLDQGXUDWLRQRIWUHDWPHQWIRUWKHFRPELQHGVXEMHFW
SRSXODWLRQZDVGD\VUDQJHWRGD\V
7KHPRVWFRPPRQO\RFFXUULQJWUHDWPHQWHPHUJHQWDGYHUVHHYHQWV7($(VZHUHIDWLJXHQDXVHD
GHFUHDVHGDSSHWLWHYRPLWLQJGLDUUKRHDDQGFRQVWLSDWLRQ*UDGHRU
KLJKHU7($(VRFFXUULQJLQPRUHWKDQSDWLHQWVLQFOXGHGYRPLWLQJQ SQHXPRQLDQ DQDHPLDQ 
DQGDVFLWHVQ 
7UHDWPHQWHPHUJHQW$(VDVVHVVHGDVUHODWHGWR%*%$UHSRUWHGRISDWLHQWVLQFOXGHGIDWLJXH
UDVKQDXVHDDQGGLDUUKRHD(OHYHQSDWLHQWVH[SHULHQFHG*UDGH7($(VUHODWHGWR
%*%$7KHVHHYHQWVLQFOXGHGQDXVHDQ GLDUUKHDQ FROLWLVQ VWRPDWLWLVQ IDWLJXH
Q PXFRVDOLQIODPPDWLRQQ SQHXPRQLWLVQ DQGK\SHUWK\URLGLVPQ 6RPHSDWLHQWV
H[SHULHQFHGPRUHWKDQRQH*UDGH7($(FRQVLGHUHGUHODWHGWR%*%$
7ZHQW\SDWLHQWVH[SHULHQFHGD7($(WKDWOHGWRWUHDWPHQWGLVFRQWLQXDWLRQ*UDGHRUKLJKHU7($(
ZHUHUHSRUWHGLQRIWKHVHSDWLHQWV7UHDWPHQWHPHUJHQW$(VOHDGLQJWRWUHDWPHQWGLVFRQWLQXDWLRQ
UHSRUWHGLQDWOHDVWSDWLHQWVLQFOXGHGSQHXPRQLWLVQ DQGYRPLWLQJQ $OORWKHU7($(VWKDWOHGWR
WUHDWPHQWGLVFRQWLQXDWLRQRFFXUUHGLQVLQJOHSDWLHQWV
1LQHWHHQSDWLHQWVH[SHULHQFHGDQLPPXQHUHODWHG$(LU$(7KHPRVWIUHTXHQWO\RFFXUULQJLU$(V
LQFOXGHGSQHXPRQLWLVQ DVSDUWDWHDPLQRWUDQVIHUDVH$67LQFUHDVHGK\SHUWK\URLGLVPDQGUDVK
SDWLHQWVHDFKDQGFROLWLVGHUPDWLWLVGLDUUKRHDDQGK\SRWK\URLGLVPSDWLHQWVHDFK$OORWKHULU$(V
RFFXUUHGLQVLQJOHSDWLHQWV(LJKWRIWKHVHSDWLHQWVH[SHULHQFHGD*UDGHLU$(


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
3UHOLPLQDU\HIILFDF\UHVXOWVLQGLFDWHSDWLHQWVDFKLHYHGFRQILUPHGSDUWLDOUHVSRQVH35WR%*%$
PRQRWKHUDS\DQGSDWLHQWVKDGVWDEOHGLVHDVH6'

6WXG\5DWLRQDOHV

5DWLRQDOHIRU%*%$LQWKH7UHDWPHQWRI+HSDWRFHOOXODU&DUFLQRPD
+LJKOHYHOVRI)FȖ5H[SUHVVLQJP\HORLGGHULYHGFHOOVHJ0PDFURSKDJH0'6&LQWXPRUWLVVXHVSUHGLFW
DSRRUVXUYLYDORIWXPRUEHDULQJDQLPDOVDIWHUDQWL3'PRQRFORQDODQWLERG\WUHDWPHQWWKLVLVSRVVLEO\GXH
WR)F)FȖ5PHGLDWHG$'&&RUDQWLERG\GHSHQGHQWFHOOXODUSKDJRF\WRVLV$'&3GHSOHWLRQRIHIIHFWRU
7FHOOV*XOHWDO3ULHWRHWDO0DNDURY5XVKHUHWDO%HHUVHWDO'DKDQHWDO
$VDQRWRORZ)FȖ5ELQGLQJDJHQWWKXVFDXVLQJPLQLPDO$'&&$'&3HIIHFW%*%$LVH[SHFWHGWR
SRWHQWLDOO\VKRZVXSHULRUHIILFDF\DQGORZHUWR[LFLW\LQKHSDWRFHOOXODUFDUFLQRPD$YDLODEOHGDWDIURPD
FOLQLFDOWULDOZLWKDQRWKHUDQWL3'PRQRFORQDODQWLERG\QLYROXPDEKDVVKRZQWKHGUXJWRKDYHERWKD
PDQDJHDEOHVDIHW\SURILOHDQGSURPLVLQJDQWLWXPRUDFWLYLW\LQSDWLHQWVZLWKXQUHVHFWDEOH+&&6HFWLRQ
$FFRUGLQJWRWKHODWHVWGDWDFROOHFWHGIURPWKH3KDVH%*%$B6WXG\B%*%$PRQRWKHUDS\KDV
HVWDEOLVKHGDPDQDJHDEOHVDIHW\SURILOHZLWKWKHPRVWFRPPRQVLGHHIIHFWVFRQVLVWHQWZLWKNQRZQFODVV
HIIHFWVRIRWKHUDQWL3'DQWLERGLHV6HFWLRQ$VRIWKHGDWDFXWRIIGDWH$SULODVPDOOFRKRUW
RIKHDYLO\SUHWUHDWHGSDWLHQWVZLWK+&&Q HYDOXDEOHQ HQUROOHGZHUHWUHDWHGZLWK%*%$
PJNJ4:LQ3KDVH%RI%*%$B6WXG\B7ZRSDWLHQWVZLWKFRQILUPHG35DQGRQHZLWK
XQFRQILUPHG35ZHUHREVHUYHG,WLVLPSRUWDQWWRQRWHWKDWWKHPHGLDQGXUDWLRQRIIROORZXSLQWKLVFRKRUW
RI+&&SDWLHQWVZDVRQO\GD\V5HVSRQVHVZHUHDVVHVVHGDIWHUHYHU\ZHHNVRQWKHUDS\ZLWK
FRQILUPDWLRQRIUHVSRQVHRFFXUULQJDWOHDVWZHHNVDIWHULQLWLDOUHVSRQVHDVVHVVPHQW7ZHQW\ILYHSDWLHQWV
UHPDLQRQVWXG\WUHDWPHQW

5DWLRQDOHIRU6HOHFWLRQRI%*%$'RVH
7KHIL[HGGRVHRI%*%$PJZDVVHOHFWHGEDVHGRQERWKQRQFOLQLFDOVWXGLHVDQGDYDLODEOHFOLQLFDO
GDWDHIILFDF\VDIHW\DQG3.
7KHVDIHW\RI%*%$KDVEHHQWHVWHGDFURVVDUDQJHRIGRVHVLQ%*%$B6WXG\BPJNJWR
PJNJ4:>Q @PJNJWRPJNJ4:>Q @ZLWKQR07'GHILQHGDWWKHKLJKHVWGRVH
H[DPLQHG(IILFDF\KDVDOVREHHQGHPRQVWUDWHGLQRIHYDOXDEOHSDWLHQWVWRGDWHGLDJQRVHGZLWK
DYDULHW\RIWXPRUW\SHVDQGWUHDWHGDFFRUGLQJWRDVFKHGXOHGGRVHUDQJH6SHFLILFDOO\UDWHVRI
WUHDWPHQWUHODWHG$(VDQGVHULRXVDGYHUVHHYHQWV6$(VREVHUYHGLQSDWLHQWVWDNLQJPJNJDQGPJNJ
4:DQG4:ZHUHFRPSDUDEOHVXJJHVWLQJQRFOHDUGRVHGHSHQGHQFHDFURVVWKHVHUHJLPHQV6LPLODUO\
FRQILUPHGREMHFWLYHUHVSRQVHUDWHV255VLQSDWLHQWVWUHDWHGZLWKPJNJDQGPJNJ4:UDQJHG
EHWZHHQDQGFRPSDUHGWRDUDQJHRIWRIRUSDWHQWVWUHDWHGDWPJNJDQGPJNJ4:
$FFRUGLQJWR3KDVHDFRPSRQHQW3.GDWDVHUXPFRQFHQWUDWLRQVRI%*%$VKRZHGOLQHDUUHODWLRQVKLSV
ZLWKGRVHVUDQJLQJIURPPJNJ4:WRPJNJ4:%HFDXVHWKHFOHDUDQFHRI%*%$ZDVIRXQG
WREHLQGHSHQGHQWRIERG\ZHLJKWDPJGRVHERG\ZHLJKWDGMXVWHGGRVHEHWZHHQDQGPJNJ
DGPLQLVWHUHG4:ZDVH[SHFWHGWROHDGWRVHUXPH[SRVXUHEHWZHHQPJNJDQGPJNJ7KLVSUHGLFWLRQ
ZDVFRUURERUDWHGZLWKVLPXODWLRQVFRQGXFWHGXVLQJWKHSRSXODWLRQ3.DQDO\VLVDQGIXUWKHUVXSSRUWHGE\
SUHOLPLQDU\3.GDWDIURPSDWLHQWVZKRUHFHLYHGPJ4:3KDVHDSDUW%*%$


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
FRQFHQWUDWLRQVDIWHUWKHILUVWPJGRVHZDVLQEHWZHHQWKHFRQFHQWUDWLRQVREVHUYHGDIWHUPJNJDQG
PJNJGRVHVLQSDWLHQWVIURP3KDVHDSDUWV$GGLWLRQDOO\DVVKRZQE\DYDLODEOHGDWDIURP
%*%$B6WXG\BDQG%*%$WKH3.SURILOHRI%*%$LVFRQVLVWHQWEHWZHHQ&KLQHVH
SDWLHQWVDQG&DXFDVLDQSDWLHQWV
$GGLWLRQDOO\QRXQH[SHFWHGWUHDWPHQWUHODWHG$(VRFFXUUHGLQWKHPJIL[HGGRVHFRKRUW3KDVHD
3DUWZKHQFRPSDUHGWRERG\ZHLJKWEDVHGFRKRUWV2IWKHHYDOXDEOHSDWLHQWVWUHDWHGQ SDWLHQWKDG
DEHVWRYHUDOOUHVSRQVH%25RI6'DQGSDWLHQWVKDG%25VRISURJUHVVLYHGLVHDVH3'7KHUHIRUH
FOLQLFDODFWLYLW\ZLWKDPDQDJHDEOHDQGWROHUDEOHVDIHW\SURILOHLVH[SHFWHGWREHPDLQWDLQHGLQSDWLHQWV
UHFHLYLQJ%*%$PJ4:
,QFRQFOXVLRQ%*%$PJ4:LVWKHUHFRPPHQGHGGRVHIRUWKLV3KDVHJOREDOVWXG\

%HQHILW5LVN$VVHVVPHQW
3DWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&ZKRKDYHSURJUHVVHGDIWHUSULRUOLQHVRIWKHUDS\
UHSUHVHQWDSRSXODWLRQZLWKDJUHDWXQPHWPHGLFDOQHHG6RUDIHQLELVFXUUHQWO\WKHRQO\DSSURYHGV\VWHPLF
WKHUDS\DYDLODEOHWRSDWLHQWVZLWK+&&LQWKHILUVWOLQHVHWWLQJZRUOGZLGHWKDWKDVDPDQDJHDEOHVDIHW\SURILOH
FKDUDFWHUL]HGE\DUHODWLYHO\PRGHUDWHLQFLGHQFHRIGRVHUHGXFWLRQVRUGUXJGLVFRQWLQXDWLRQVVHH
6HFWLRQ0RUHUHFHQWO\UHJRUDIHQLEZDVDSSURYHGIRUWKHWUHDWPHQWRI+&&SDWLHQWVZKRKDYH
SURJUHVVHGDIWHUVRUDIHQLEWUHDWPHQWLQWKH86(8DQG-DSDQVHH6HFWLRQ
'DWDIURPD3KDVHFOLQLFDOWULDORIQLYROXPDEDVLPLODUDQWL3'DQWLERG\LQGLFDWHGDQREMHFWLYH
UHVSRQVHRI&,WRWKDWLVGXUDEOHZKLFKVXJJHVWVWKHSRWHQWLDOHIILFDF\RIDQWL3'
DQWLERG\IRUWKHWUHDWPHQWRISDWLHQWVZLWKDGYDQFHG+&&IRUDGGLWLRQDOGLVFXVVLRQVHH6HFWLRQ,QD
VPDOOFRKRUWRISDWLHQWVQ HYDOXDEOHZLWK+&&LQWKHVHFRQGOLQHVHWWLQJWUHDWHGZLWK%*%$
PJNJLQ3KDVHERI%*%$B6WXG\BFRQILUPHG35VZHUHREVHUYHGLQSDWLHQWVZLWKDQRWKHU
SDWLHQWZKRKDGXQFRQILUPHG35DQGFRQWLQXHGRQWUHDWPHQW7KHVHHQFRXUDJLQJUHVXOWVRFFXULQSDWLHQWV
ZLWKDPHGLDQWUHDWPHQWRIGD\VDQGUHVSRQVHVZHUHDVVHVVHGDIWHUHYHU\ZHHNVRQWKHUDS\
&RQILUPDWLRQRIUHVSRQVHZDVUHTXLUHGDQGRFFXUUHGDWOHDVWZHHNDIWHULQLWLDOUHVSRQVHDVVHVVPHQW
$PDMRULW\RISDWLHQWVRIUHPDLQRQWUHDWPHQW<HQHWDO
0RUHWKDQSDWLHQWVKDYHEHHQWUHDWHGZLWK%*%$PRQRWKHUDS\DWFOLQLFDOO\UHOHYDQWGRVHV
PJNJDQGLQFRPELQDWLRQ7KHVDIHW\SURILOHLVFRQVLVWHQWZLWKNQRZQFODVVHIIHFWVRIDQWL3'
DQWLERGLHVDQGLQFOXGHGPRVWO\PLOGPRGHUDWH$(V9HU\IHZ*UDGHLU$(VKDYHEHHQREVHUYHGZKLFK
DUHJHQHUDOO\UHYHUVLEOHDQGPDQDJHDEOHZLWKVWXG\GUXJLQWHUUXSWLRQDQGRUVWHURLGWUHDWPHQW)RUIXUWKHU
GLVFXVVLRQRQVDIHW\SURILOHRI%*%$SOHDVHUHIHUWRWKH,QYHVWLJDWRU¶V%URFKXUH
*LYHQWKHXQPHWPHGLFDOQHHGDQGOLPLWHGWUHDWPHQWRSWLRQVLQWKLVLQGLFDWLRQWKHEHQHILWULVNDVVHVVPHQW
EDVHGRQDYDLODEOH%*%$3KDVHGDWDDQGWKHSXEOLFDWLRQIURP3KDVHVWXG\RIQLYROXPDELV
FRQVLGHUHGIDYRUDEOH7KLV3KDVHVWXG\ZLOOEHFRQGXFWHGLQRUGHUWRDVVHVVWKHSRWHQWLDOEHQHILWDQGVDIHW\
RI%*%$PRQRWKHUDS\LQXQUHVHFWDEOH+&&SDWLHQWVZKRKDYHUHFHLYHGDWOHDVWOLQHVRISULRU
WKHUDS\


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

678'<2%-(&7,9(6$1'(1'32,176

6WXG\2EMHFWLYHV

3ULPDU\2EMHFWLYH
7KHSULPDU\REMHFWLYHRIWKHVWXG\LVWRHYDOXDWHWKHHIILFDF\RI%*%$WKURXJK,QGHSHQGHQW5HYLHZ
&RPPLWWHH,5&DVVHVVHG255E\5HVSRQVH(YDOXDWLRQ&ULWHULDLQ6ROLG7XPRUV5(&,679HUVLRQY
LQSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&

6HFRQGDU\2EMHFWLYHV
7KHVHFRQGDU\REMHFWLYHVRIWKHVWXG\DUHDVIROORZV
x
7RDVVHVVWKHHIILFDF\RI%*%$WKURXJKGXUDWLRQRIUHVSRQVH'25SURJUHVVLRQIUHHVXUYLYDO
3)6GLVHDVHFRQWUROUDWH'&5DQGFOLQLFDOEHQHILWUDWH&%5DVVHVVHGE\,5&DQG26
x
7RDVVHVVHIILFDF\RI%*%$WKURXJK255'253)6'&5DQG&%5DVVHVVHGE\WKH
LQYHVWLJDWRUV
x
7RDVVHVVWKHVDIHW\DQGWROHUDELOLW\RI%*%$LQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH
+&&
x
7RDVVHVVWKHKHDOWKUHODWHGTXDOLW\RIOLIH+54R/RI%*%$LQSDWLHQWVZLWKSUHYLRXVO\
WUHDWHGXQUHVHFWDEOH+&&

([SORUDWRU\2EMHFWLYHV
7KHH[SORUDWRU\REMHFWLYHVRIWKHVWXG\DUH
x
7RDVVHVVSRWHQWLDOSUHGLFWLYHELRPDUNHUV
x
7RFKDUDFWHUL]HWKH3.RI%*%$
x
7RDVVHVVKRVWLPPXQRJHQLFLW\WR%*%$

6WXG\(QGSRLQWV

3ULPDU\(QGSRLQW
7KHSULPDU\HQGSRLQWLV255&535EDVHGRQ5(&,67YLQSDWLHQWVZLWKSUHYLRXVO\WUHDWHG
XQUHVHFWDEOH+&&DVHYDOXDWHGE\DQ,5&

6HFRQGDU\(QGSRLQWV

x
'253)6'&5DQG&%5DVVHVVHGE\,5&DQG26
x
255'253)6'&5DQG&%5DVVHVVHGE\LQYHVWLJDWRUV
x
6DIHW\DQGWROHUDELOLW\DVVHVVPHQWRI$(V6$(VSK\VLFDOH[DPLQDWLRQYLWDOVLJQV(&*DQG
ODERUDWRU\PHDVXUHPHQWV
x
+54R/PHDVXUHGXVLQJ(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XDOLW\RI
/LIH4XHVWLRQQDLUH+HSDWRFHOOXODU&DUFLQRPD4XHVWLRQV(257&4/4+&&LQGH[VFRUH
(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XDOLW\RI/LIH4XHVWLRQQDLUH&RUH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
(257&4/4&LQGH[VFRUHDQGOHYHOYHUVLRQRIWKH(XURSHDQ4XDOLW\RI/LIH'LPHQVLRQDO
4XHVWLRQQDLUH(4'/

([SORUDWRU\(QGSRLQWV
x
$SUHGLFWLYHELRPDUNHUIRUH[DPSOH3'/H[SUHVVLRQDQGJHQHH[SUHVVLRQSURILOLQJLQWXPRU
WLVVXH
x
3KDUPDFRNLQHWLFVVXPPDU\RISODVPDFRQFHQWUDWLRQVRI%*%$
x
,PPXQRJHQLFLW\DVVHVVPHQWVRILPPXQRJHQLFLW\RI%*%$WRGHWHUPLQHWKHLQFLGHQFHRI
DQWLGUXJDQWLERGLHV$'$V

678'<'(6,*1

6XPPDU\RI6WXG\'HVLJQ
7KLVLVD3KDVHPXOWLFHQWHURSHQODEHOVWXG\LQDGXOWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&3DWLHQWV
ZLOOUHFHLYHRSHQODEHO%*%$PJLQWUDYHQRXVO\,94:(DFKWUHDWPHQWF\FOHZLOOEHGD\VLQ
GXUDWLRQ6WXG\WUHDWPHQWLVWREHFRQWLQXDOO\DGPLQLVWHUHGXQWLOLQWROHUDEOHWR[LFLW\ZLWKGUDZDORILQIRUPHG
FRQVHQWRUWKHWLPHSRLQWDWZKLFKLQWKHRSLQLRQRIWKHLQYHVWLJDWRUWKHSDWLHQWLVQRORQJHUEHQHILWLQJIURP
VWXG\WKHUDS\ZKLFKHYHUVKRXOGRFFXUILUVW
7KHVWXG\SURFHGXUHVZLOORFFXURYHUD6FUHHQLQJSKDVHRIXSWRGD\VD7UHDWPHQWSKDVHD6DIHW\
)ROORZXSSKDVHDQGD6XUYLYDO)ROORZXSSKDVH6HH6HFWLRQIRUDGHVFULSWLRQRIHDFKSKDVH)RUDOO
VWXG\SURFHGXUHVVHH6HFWLRQDQG$SSHQGL[

6WXG\6FKHPDWLF
7KHVWXG\GHVLJQVFKHPDWLFLVSUHVHQWHGLQ)LJXUH$SSUR[LPDWHO\SDWLHQWVZLOOUHFHLYHRSHQODEHO
%*%$2IWKHSDWLHQWVDWOHDVWSDWLHQWVZLOOEHHQUROOHGZKRKDYHKDGQRPRUHWKDQOLQHRI
SULRUV\VWHPLFWKHUDS\DQGDWOHDVWSDWLHQWVZLOOEHHQUROOHGZKRKDYHKDGDWOHDVWOLQHVRISULRU
V\VWHPLFWKHUDS\VHH$SSHQGL[IRUDGGLWLRQDOJXLGDQFH
)LJXUH6WXG\'HVLJQ6FKHPDWLF







%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

'XUDWLRQRI6WXG\
7RWDOGXUDWLRQRIVWXG\SDUWLFLSDWLRQZLOOYDU\E\SDWLHQW(DFKVWXG\SKDVHLVIXUWKHUGLVFXVVHGEHORZ

6FUHHQLQJ3HULRG
6FUHHQLQJHYDOXDWLRQVZLOOEHSHUIRUPHGZLWKLQGD\VSULRUWRWKHILUVWGRVHRI%*%$3DWLHQWVZKR
DJUHHWRSDUWLFLSDWHZLOOVLJQWKHLQIRUPHGFRQVHQWIRUP,&)SULRUWRXQGHUJRLQJDQ\VFUHHQLQJSURFHGXUH
3DWLHQWVZKRDUHVXVSHFWHGWRKDYHVHULRXVUHVSLUDWRU\FRQFXUUHQWLOOQHVVRUH[KLELWVLJQLILFDQWUHVSLUDWRU\
V\PSWRPVVKRXOGXQGHUJRSXOPRQDU\IXQFWLRQWHVWLQJUHIHUWR6HFWLRQDQG$SSHQGL[IRUGHWDLOV
6FUHHQLQJHYDOXDWLRQVPD\EHUHSHDWHGDVQHHGHGZLWKLQWKHVFUHHQLQJSHULRGWKHLQYHVWLJDWRUZLOODVVHVV
SDWLHQWHOLJLELOLW\DFFRUGLQJWRWKHODWHVWVFUHHQLQJDVVHVVPHQWUHVXOWV
$IUHVKEDVHOLQHELRSV\VDPSOHLIDFFHVVLEOHDQGDSSURSULDWHDQGDUFKLYDOWXPRUWLVVXHLIDYDLODEOHDUH
UHTXLUHGIRUELRPDUNHUDQDO\VLV5HIHUWR6HFWLRQIRUGHWDLOV

7UHDWPHQW3HULRG
$IWHUFRPSOHWLQJDOO6FUHHQLQJDFWLYLWLHVSDWLHQWVFRQILUPHGE\WKHVSRQVRUWREHHOLJLEOHZLOOUHFHLYHRSHQ
ODEHOWUHDWPHQWZLWK%*%$PJ,94:XQWLOLQWROHUDEOHWR[LFLW\ZLWKGUDZDORILQIRUPHGFRQVHQW
RUWKHWLPHSRLQWDWZKLFKLQWKHLQYHVWLJDWRU¶VRSLQLRQWKHSDWLHQWLVQRORQJHUEHQHILWLQJIURPVWXG\
WKHUDS\ZKLFKHYHUVKRXOGRFFXUILUVW7UHDWPHQWEH\RQGLQLWLDOGLVHDVHSURJUHVVLRQDVDVVHVVHGE\WKH
LQYHVWLJDWRUSHU5(&,67YLVSHUPLWWHGSURYLGHGWKHSDWLHQWPHHWVWKHFULWHULDLQ6HFWLRQ
5DGLRORJLFDODVVHVVPHQWRIWXPRUUHVSRQVHVWDWXVVKRXOGEHSHUIRUPHGHYHU\ZHHNVLQWKHILUVWZHHNV
WKHQHYHU\ZHHNVWKHUHDIWHU7XPRUUHVSRQVHZLOOEHDVVHVVHGE\DQ,QGHSHQGHQW5HYLHZ&RPPLWWHH,5&
DQGE\LQYHVWLJDWRUV'HWDLOVDUHSURYLGHGLQ6HFWLRQ
6DIHW\ZLOOEHDVVHVVHGWKURXJKRXWWKHVWXG\E\PRQLWRULQJ$(V6$(VWR[LFLW\JUDGHVDVVLJQHGSHU1DWLRQDO
&DQFHU,QVWLWXWH&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV1&,&7&$(YDQGODERUDWRU\
DEQRUPDOLWLHV9LWDOVLJQVSK\VLFDOH[DPLQDWLRQV(&2*36FKDQJHDQGHOHFWURFDUGLRJUDP(&*UHVXOWV
ZLOODOVREHXVHGIRUVDIHW\DVVHVVPHQW6DIHW\DVVHVVPHQWVDUHIXUWKHUGHWDLOHGLQ6HFWLRQDQGWKH
6FKHGXOHRI$VVHVVPHQWV$SSHQGL[

6DIHW\)ROORZXS3HULRG
3DWLHQWVZLOOUHWXUQDSSUR[LPDWHO\GD\VDIWHUWKHODVWGRVHRIVWXG\GUXJRUEHIRUHWKHLQLWLDWLRQRIDQHZ
DQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVWIRUD6DIHW\)ROORZXSYLVLWWRFROOHFW$(VRU6$(VWKDWPD\KDYH
RFFXUUHGDIWHUWKHSDWLHQWGLVFRQWLQXHGIURPWKHVWXG\WUHDWPHQW$OOLU$(VZLOOEHUHFRUGHGXQWLOXSWR
GD\VDIWHUWKHODVWGRVHRIVWXG\WUHDWPHQWUHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHU
WKHUDS\$OOGUXJUHODWHG6$(VZLOOEHUHFRUGHGE\WKHLQYHVWLJDWRUDIWHUWUHDWPHQWGLVFRQWLQXDWLRQVHH
6HFWLRQ

6XUYLYDO)ROORZXS3HULRG
3DWLHQWVZKRGLVFRQWLQXHVWXG\GUXJIRUUHDVRQVRWKHUWKDQGLVHDVHSURJUHVVLRQHJWR[LFLW\ZLOOFRQWLQXHWR
XQGHUJRWXPRUDVVHVVPHQWVDFFRUGLQJWR6HFWLRQDQGWKH6FKHGXOHRI$VVHVVPHQWV$SSHQGL[XQWLO


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
GLVHDVHSURJUHVVLRQZLWKGUDZDORIFRQVHQWGHDWKRUVWDUWRIDQHZDQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVW
VHH6HFWLRQ
3DWLHQWVZLOOEHIROORZHGIRUVXUYLYDODQGIXUWKHUDQWLFDQFHUWKHUDS\LQIRUPDWLRQDIWHUGLVFRQWLQXDWLRQRI
VWXG\WUHDWPHQWYLDWHOHSKRQHFDOOVSDWLHQWPHGLFDOUHFRUGVDQGRUFOLQLFYLVLWVDSSUR[LPDWHO\HYHU\
PRQWKVGD\VDIWHUWKH6DIHW\)ROORZXSYLVLWRUDVGLUHFWHGE\WKHVSRQVRUXQWLOGHDWKORVVWR
IROORZXSZLWKGUDZDORIFRQVHQWRUVWXG\WHUPLQDWLRQE\WKHVSRQVRUZKLFKHYHURFFXUVILUVW

678'<3238/$7,21
7KHVSHFLILFHOLJLELOLW\FULWHULDIRUVHOHFWLRQRISDWLHQWVDUHSURYLGHGLQ6HFWLRQDQG6HFWLRQ7KH
VSRQVRUZLOOQRWJUDQWDQ\HOLJLELOLW\ZDLYHUV

,QFOXVLRQ&ULWHULD
(DFKSDWLHQWHOLJLEOHWRSDUWLFLSDWHLQWKLVVWXG\PXVWPHHWDOORIWKHIROORZLQJFULWHULD
 $EOHWRSURYLGHZULWWHQLQIRUPHGFRQVHQWDQGFDQXQGHUVWDQGDQGFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKH
VWXG\
 $JH\HDUVRQWKHGD\RIVLJQLQJWKHLQIRUPHGFRQVHQWIRUPRUDFFHSWDEOHDJHDFFRUGLQJWRORFDO
UHJXODWLRQV
 3DWLHQWVPXVWPHHWWKHIROORZLQJFULWHULD
D +LVWRORJLFDOO\FRQILUPHG+&&
E 3DWLHQWVZLWK%&/&VWDJH&%&/&VWDJH%QRWDPHQDEOHWRORFRUHJLRQDOWKHUDS\RUUHODSVHG
DIWHUORFRUHJLRQDOWKHUDS\DQGQRWDPHQDEOHWRDFXUDWLYHWUHDWPHQWDSSURDFK$SSHQGL[
F &KLOG3XJK$$SSHQGL[
G +DVUHFHLYHGDWOHDVWOLQHRIV\VWHPLFWKHUDS\IRUXQUHVHFWDEOH+&&PXVWKDYHSURJUHVVHG
RQRULVLQWROHUDQWWRLQWKHILUVWOLQHVHWWLQJHLWKHUVRUDIHQLEFKHPRWKHUDS\RUDQ
H[SHULPHQWDOWKHUDS\WKDWKDVGHPRQVWUDWHGHIILFDF\LQD3KDVHVWXG\>HJOHQYDWLQLE@VHH
$SSHQGL[IRUDGGLWLRQDOJXLGDQFH
 +DVDWOHDVWPHDVXUDEOHOHVLRQDVGHILQHGSHU5(&,67Y
 +DV(&2*36
 ,ISDWLHQWKDV+%9PHHWVWKHIROORZLQJFULWHULDDVDSSOLFDEOHWRWKHLQIHFWLRQW\SH
)RUSDWLHQWVZLWKLQDFWLYHDV\PSWRPDWLFFDUULHUFKURQLFRUDFWLYH+%9
x
+DV+%9GHR[\ULERQXFOHLFDFLG'1$,8P/RUFRSLHVP/DW6FUHHQLQJ
1RWH3DWLHQWVZLWKGHWHFWDEOHKHSDWLWLV%VXUIDFHDQWLJHQ+%V$JRUGHWHFWDEOH+%9'1$
VKRXOGEHPDQDJHGSHUWUHDWPHQWJXLGHOLQHV3DWLHQWVUHFHLYLQJDQWLYLUDOVDW6FUHHQLQJVKRXOG
KDYHEHHQWUHDWHGIRU!ZHHNVSULRUWRHQUROOPHQWDQGVKRXOGFRQWLQXHWUHDWPHQWIRUPRQWKV
DIWHUVWXG\GUXJWUHDWPHQWGLVFRQWLQXHV
 +DVDGHTXDWHRUJDQIXQFWLRQDVLQGLFDWHGE\WKHIROORZLQJODERUDWRU\YDOXHV
D $EVROXWHQHXWURSKLOFRXQW$1&PFOSODWHOHWVPFOKHPRJORELQJ/RU
PPRO/1RWH3DWLHQWVPXVWQRWKDYHUHTXLUHGDWUDQVIXVLRQRIEORRGSURGXFWRUJURZWK


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
IDFWRUVXSSRUWZLWKLQWKHGD\VEHIRUHVDPSOHFROOHFWLRQ
E (VWLPDWHGJORPHUXODUILOWUDWLRQUDWHH*)5P/PLQPE\&KURQLF.LGQH\'LVHDVH
(SLGHPLRORJ\&ROODERUDWLRQHTXDWLRQ$SSHQGL[
F 6HUXPWRWDOELOLUXELQȝPRO/PJG/
G ,QWHUQDWLRQDOQRUPDOL]HGUDWLR,15RUSURWKURPELQWLPH37îXSSHUOLPLWRIQRUPDO
8/1
H $FWLYDWHGSDUWLDOWKURPERSODVWLQWLPHD377î8/1
I $VSDUWDWHDPLQRWUDQVIHUDVH$67DQGDODQLQHDPLQRWUDQVIHUDVH$/7î8/1
J 6HUXPDOEXPLQJ/
 )HPDOHVRIFKLOGEHDULQJSRWHQWLDODVGHILQHGLQ6HFWLRQPXVWEHZLOOLQJWRXVHDKLJKO\
HIIHFWLYHPHWKRGRIELUWKFRQWUROIRUWKHGXUDWLRQRIWKHVWXG\DQGIRUDWOHDVWGD\VDIWHUWKHODVW
GRVHRI%*%$DQGKDYHDQHJDWLYHXULQHRUVHUXPSUHJQDQF\WHVWZLWKLQGD\VRIWKHILUVWVWXG\
GUXJDGPLQLVWUDWLRQ
 1RQVWHULOHPDOHVDVGHILQHGLQ6HFWLRQPXVWEHZLOOLQJWRXVHDKLJKO\HIIHFWLYHPHWKRGRI
ELUWKFRQWUROIRUWKHGXUDWLRQRIWKHVWXG\DQGIRUDWOHDVWGD\VDIWHUWKHODVWGRVHRI%*%$
0XVWEHZLOOLQJWRDEVWDLQIURPDOFRKROFRQVXPSWLRQZKLOHUHFHLYLQJ%*%$

([FOXVLRQ&ULWHULD
3DWLHQWVZKRPHHWDQ\RIWKHIROORZLQJFULWHULDPXVWEHH[FOXGHGIURPWKLVVWXG\
 +DVNQRZQILEURODPHOODU+&&VDUFRPDWRLG+&&RUPL[HGFKRODQJLRFDUFLQRPDDQG+&&
 3ULRUWKHUDSLHVWDUJHWLQJ3'RU3'/
 +DVNQRZQEUDLQRUOHSWRPHQLQJHDOPHWDVWDVLV
 +DVUHFHLYHGZLWKLQZHHNVEHIRUHHQUROOPHQWORFRUHJLRQDOWKHUDS\WRWKHOLYHULHWUDQVDUWHULDO
FKHPRHPEROL]DWLRQWUDQVFDWKHWHUHPEROL]DWLRQKHSDWLFDUWHULDOLQIXVLRQUDGLDWLRQUDGLRHPEROL]DWLRQ
RUDEODWLRQ
 +DVUHFHLYHG
D :LWKLQGD\VRUKDOIOLYHVZKLFKHYHULVVKRUWHURIWKHILUVWVWXG\GUXJDGPLQLVWUDWLRQ
DQ\FKHPRWKHUDS\LPPXQRWKHUDS\HJLQWHUOHXNLQLQWHUIHURQWK\PR[LQRUDQ\
LQYHVWLJDWLRQDOWKHUDSLHV
E :LWKLQGD\VRIWKHILUVWVWXG\GUXJDGPLQLVWUDWLRQVRUDIHQLEUHJRUDIHQLERUDQ\&KLQHVH
KHUEDOPHGLFLQHRU&KLQHVHSDWHQWPHGLFLQHVXVHGWRFRQWUROFDQFHU
 +DVWXPRUWKURPEXVLQYROYLQJPDLQWUXQNRISRUWDOYHLQRULQIHULRUYHQDFDYD
 +DVDWVFUHHQLQJDQGRUKDVDQ\SULRUKLVWRU\RI*UDGHKHSDWLFHQFHSKDORSDWK\$SSHQGL[
 +DVDWVFUHHQLQJSHULFDUGLDOHIIXVLRQXQFRQWUROODEOHSOHXUDOHIIXVLRQRUFOLQLFDOO\VLJQLILFDQWDVFLWHV
GHILQHGDVPHHWLQJHLWKHURI
D 'HWHFWDEOHDVFLWHVRQVFUHHQLQJSK\VLFDOH[DPLQDWLRQ25
E +DVDWVFUHHQLQJDVFLWHVUHTXLULQJSDUDFHQWHVLV
 $FWLYHDXWRLPPXQHGLVHDVHVRUKLVWRU\RIDXWRLPPXQHGLVHDVHVWKDWPD\UHODSVH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
1RWH3DWLHQWVZLWKWKHIROORZLQJGLVHDVHVDUHQRWH[FOXGHGDQGPD\SURFHHGWRIXUWKHUVFUHHQLQJ
D 7\SH,GLDEHWHV
E +\SRWK\URLGLVPSURYLGHGLWLVPDQDJHGZLWKKRUPRQHUHSODFHPHQWWKHUDS\RQO\
F &RQWUROOHGFHOLDFGLVHDVH
G 6NLQGLVHDVHVQRWUHTXLULQJV\VWHPLFWUHDWPHQWHJYLWLOLJRSVRULDVLVDORSHFLD
H $Q\RWKHUGLVHDVHWKDWLVQRWH[SHFWHGWRUHFXULQWKHDEVHQFHRIH[WHUQDOWULJJHULQJIDFWRUV
+DVDQ\FRQGLWLRQWKDWUHTXLUHGV\VWHPLFWUHDWPHQWZLWKHLWKHUFRUWLFRVWHURLGV!PJGDLO\RI
SUHGQLVRQHRUHTXLYDOHQWRURWKHULPPXQRVXSSUHVVLYHPHGLFDWLRQZLWKLQGD\VEHIRUHVWXG\GUXJ
DGPLQLVWUDWLRQ
1RWH3DWLHQWVZKRDUHFXUUHQWO\RUKDYHSUHYLRXVO\EHHQRQDQ\RIWKHIROORZLQJVWHURLGUHJLPHQVDUH
QRWH[FOXGHG
D $GUHQDOUHSODFHPHQWVWHURLGGRVHPJGDLO\RISUHGQLVRQHRUHTXLYDOHQW
E 7RSLFDORFXODULQWUDDUWLFXODULQWUDQDVDORULQKDODWLRQDOFRUWLFRVWHURLGZLWKPLQLPDO
V\VWHPLFDEVRUSWLRQ
F 6KRUWFRXUVHGD\VRIFRUWLFRVWHURLGSUHVFULEHGSURSK\ODFWLFDOO\HJIRUFRQWUDVWG\H
DOOHUJ\RUIRUWKHWUHDWPHQWRIDQRQDXWRLPPXQHFRQGLWLRQHJGHOD\HGW\SH
K\SHUVHQVLWLYLW\UHDFWLRQFDXVHGE\FRQWDFWDOOHUJHQ
:LWKKLVWRU\RILQWHUVWLWLDOOXQJGLVHDVHQRQLQIHFWLRXVSQHXPRQLWLVRUXQFRQWUROOHGV\VWHPLFGLVHDVHV
LQFOXGLQJGLDEHWHVK\SHUWHQVLRQSXOPRQDU\ILEURVLVDFXWHOXQJGLVHDVHVHWF
+DVDNQRZQKLVWRU\RI+,9LQIHFWLRQ
+DVXQGHUJRQHSULRUDOORJHQHLFVWHPFHOOWUDQVSODQWDWLRQRURUJDQWUDQVSODQWDWLRQ
+DVDQ\RIWKHIROORZLQJFDUGLRYDVFXODUULVNIDFWRUV
D &DUGLDFFKHVWSDLQGHILQHGDVPRGHUDWHSDLQWKDWOLPLWVLQVWUXPHQWDODFWLYLWLHVRIGDLO\OLYLQJ
ZLWKLQGD\VEHIRUHWKHILUVWVWXG\GUXJDGPLQLVWUDWLRQ
E 6\PSWRPDWLFSXOPRQDU\HPEROLVPZLWKLQGD\VEHIRUHWKHILUVWVWXG\GUXJDGPLQLVWUDWLRQ
F $Q\KLVWRU\RIDFXWHP\RFDUGLDOLQIDUFWLRQZLWKLQPRQWKVEHIRUHWKHILUVWVWXG\GUXJ
DGPLQLVWUDWLRQ
G $Q\KLVWRU\RIKHDUWIDLOXUHPHHWLQJ1HZ<RUN+HDUW$VVRFLDWLRQ1<+$&ODVVLILFDWLRQ,,,
RU,9$SSHQGL[ZLWKLQPRQWKVEHIRUHWKHILUVWVWXG\GUXJDGPLQLVWUDWLRQ
H $Q\HYHQWRIYHQWULFXODUDUUK\WKPLD*UDGHLQVHYHULW\ZLWKLQPRQWKVEHIRUH
DGPLQLVWUDWLRQRIVWXG\GUXJV
I $Q\KLVWRU\RIFHUHEURYDVFXODUDFFLGHQWZLWKLQPRQWKVEHIRUHWKHILUVWVWXG\GUXJ
DGPLQLVWUDWLRQ
+DVDKLVWRU\RIVHYHUHK\SHUVHQVLWLYLW\UHDFWLRQVWRRWKHUPRQRFORQDODQWLERGLHV
3DWLHQWVZLWKWR[LFLWLHVDVDUHVXOWRISULRUDQWLFDQFHUWKHUDS\ZKLFKKDYHQRWUHFRYHUHGWREDVHOLQH
RUVWDELOL]HGH[FHSWIRU$(VQRWFRQVLGHUHGDOLNHO\VDIHW\ULVNHJDORSHFLDQHXURSDWK\DQGVSHFLILF
ODERUDWRU\DEQRUPDOLWLHV
+DVEHHQDGPLQLVWHUHGDOLYHYDFFLQHZLWKLQGD\VSULRUWRVWXG\GUXJDGPLQLVWUDWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
1RWH6HDVRQDOYDFFLQHVIRULQIOXHQ]DDUHJHQHUDOO\LQDFWLYDWHGYDFFLQHVDQGDUHDOORZHG,QWUDQDVDOYDFFLQHV
DUHOLYHYDFFLQHVDQGDUHQRWDOORZHG
8QGHUO\LQJPHGLFDOFRQGLWLRQVRUGUXJDEXVHRUGHSHQGHQFHWKDWLQWKHLQYHVWLJDWRU¶VRSLQLRQZLOOEH
XQIDYRUDEOHIRUWKHDGPLQLVWUDWLRQRIVWXG\GUXJRUDIIHFWWKHH[SODQDWLRQRIGUXJWR[LFLW\RUDGYHUVH
HYHQWV$(VRULQVXIILFLHQWFRPSOLDQFHGXULQJWKHVWXG\DFFRUGLQJWRLQYHVWLJDWRU¶VMXGJHPHQW
&RQFXUUHQWSDUWLFLSDWLRQLQDQRWKHUWKHUDSHXWLFFOLQLFDOWULDORUHQUROOPHQWLQDSULRU%HL*HQHWULDOIRU
WKHWUHDWPHQWRI+&&
3ULRUPDOLJQDQF\DFWLYHZLWKLQWKHSUHYLRXV\HDUVH[FHSWIRUWXPRUIRUZKLFKDVXEMHFWLVHQUROOHGLQ
WKHVWXG\DQGORFDOO\FXUDEOHFDQFHUVWKDWKDYHEHHQDSSDUHQWO\FXUHGVXFKDVEDVDORUVTXDPRXVFHOO
VNLQFDQFHUVXSHUILFLDOEODGGHUFDQFHURUFDUFLQRPDLQVLWXRIWKHFHUYL[RUEUHDVW

678'<75($70(17

)RUPXODWLRQ3DFNDJLQJDQG+DQGOLQJ

%*%$
%*%$LVDPRQRFORQDODQWLERG\IRUPXODWHGIRU,9LQMHFWLRQLQDVLQJOHXVHYLDO5JODVV863W\SH,
FRQWDLQLQJDWRWDORIPJDQWLERG\LQP/RILVRWRQLFVROXWLRQ%*%$KDVEHHQDVHSWLFDOO\ILOOHG
LQVLQJOHXVHYLDOVZLWKD)OXURWHFFRDWHGEXW\OUXEEHUVWRSSHUDQGDQDOXPLQXPFDS(DFKYLDOLVSDFNDJHG
LQWRDVLQJOHFDUWRQER[
7KHODEHOZLOOLQFOXGHDWDPLQLPXPGUXJQDPHGRVHVWUHQJWKFRQWHQWVVSRQVRUSURWRFROQXPEHUNLW
QXPEHUORWQXPEHUGLUHFWLRQVIRUXVHVWRUDJHFRQGLWLRQVFDXWLRQVWDWHPHQWVUHWHVWRUH[SLU\GDWHDQG
VSDFHWRHQWHUWKHSDWLHQWQXPEHUDQGQDPHRILQYHVWLJDWRU7KHFRQWHQWVRIWKHODEHOZLOOEHLQDFFRUGDQFH
ZLWKDOODSSOLFDEOHORFDOUHJXODWRU\UHTXLUHPHQWV
7KHVWXG\GUXJPXVWEHNHSWDWWKHWHPSHUDWXUHFRQGLWLRQDVVSHFLILHGRQWKHODEHO%*%$PXVWEH
VWRUHGDWWHPSHUDWXUHVEHWZHHQDQGR&DQGSURWHFWHGIURPOLJKW
5HIHUWRWKH3KDUPDF\0DQXDOIRUGHWDLOVUHJDUGLQJ,9DGPLQLVWUDWLRQDFFRXQWDELOLW\DQGGLVSRVDO3OHDVH
DOVRUHIHUWRWKH,QYHVWLJDWRU¶V%URFKXUHIRURWKHUGHWDLOVUHJDUGLQJ%*%$

'RVDJH$GPLQLVWUDWLRQDQG&RPSOLDQFH
%*%$PJZLOOEHDGPLQLVWHUHGE\WKHLQYHVWLJDWRURUGHVLJQHHRQ'D\RIHDFKGD\F\FOH
4:
%*%$ZLOOEHDGPLQLVWHUHGE\,9LQIXVLRQSUHIHUDEO\XVLQJDYROXPHWULFSXPSWKURXJKDQ,9OLQH
FRQWDLQLQJDVWHULOHQRQS\URJHQLFORZSURWHLQELQGLQJILOWHU6SHFLILFLQVWUXFWLRQVIRUSURGXFWSUHSDUDWLRQ
DQGDGPLQLVWUDWLRQDUHSURYLGHGLQWKH3KDUPDF\0DQXDO
$VDURXWLQHSUHFDXWLRQDIWHULQIXVLRQRI%*%$RQGD\RI&\FOHDQG&\FOHSDWLHQWVPXVWEH
PRQLWRUHGIRUDWOHDVWKRXUDIWHUZDUGVLQDQDUHDZLWKUHVXVFLWDWLRQHTXLSPHQWDQGHPHUJHQF\DJHQWV)URP
&\FOHRQZDUGDWOHDVWDPLQXWHPRQLWRULQJSHULRGLVUHTXLUHGLQDQDUHDZLWKUHVXVFLWDWLRQHTXLSPHQW
DQGHPHUJHQF\DJHQWV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7KHLQLWLDOLQIXVLRQ&\FOH'D\ZLOOEHGHOLYHUHGRYHUPLQXWHVLIWKLVLVZHOOWROHUDWHGWKHQWKH
VXEVHTXHQWLQIXVLRQVPD\EHDGPLQLVWHUHGRYHUPLQXWHVZKLFKLVWKHVKRUWHVWWLPHSHULRGSHUPLVVLEOHIRU
LQIXVLRQ%*%$PXVWQRWEHFRQFXUUHQWO\DGPLQLVWHUHGZLWKDQ\RWKHUGUXJUHIHUWR6HFWLRQ
*XLGHOLQHVIRUGRVHPRGLILFDWLRQWUHDWPHQWLQWHUUXSWLRQRUGLVFRQWLQXDWLRQDQGIRUWKHPDQDJHPHQWRILU$(V
DQGLQIXVLRQUHODWHGUHDFWLRQVDUHSURYLGHGLQGHWDLOLQ6HFWLRQDQG$SSHQGL[
5HIHUWRWKH3KDUPDF\0DQXDOIRUGHWDLOHGLQVWUXFWLRQVRQGUXJSUHSDUDWLRQVWRUDJHDQGDGPLQLVWUDWLRQ

2YHUGRVH
$Q\RYHUGRVHGHILQHGDVPJRI%*%$LQDKRXUSHULRGRULQFRUUHFWDGPLQLVWUDWLRQRIVWXG\
GUXJVKRXOGEHQRWHGRQWKHVWXG\GUXJDGPLQLVWUDWLRQHOHFWURQLFFDVHUHSRUWIRUPH&5)$OO$(V
DVVRFLDWHGZLWKDQRYHUGRVHRULQFRUUHFWDGPLQLVWUDWLRQRIVWXG\GUXJZLOOEHUHFRUGHGRQWKH$(H&5)$Q\
6$(VDVVRFLDWHGZLWKDQRYHUGRVHRULQFRUUHFWDGPLQLVWUDWLRQDUHUHTXLUHGWREHUHSRUWHGZLWKLQKRXUVRI
DZDUHQHVVYLD6$(UHSRUWLQJSURFHVVDVGHVFULEHGLQ6HFWLRQ6XSSRUWLYHFDUHPHDVXUHVVKRXOGEH
DGPLQLVWHUHGDVDSSURSULDWH

,QYHVWLJDWLRQDO0HGLFLQDO3URGXFW$FFRXQWDELOLW\
%*%$WKHLQYHVWLJDWLRQDOPHGLFLQDOSURGXFW,03ZLOOEHSURYLGHGE\WKHVSRQVRU7KH
LQYHVWLJDWLRQDOVLWHZLOODFNQRZOHGJHUHFHLSWRI,03$Q\GDPDJHGVKLSPHQWVZLOOEHUHSODFHG
$FFXUDWHUHFRUGVRIDOO,03UHFHLYHGGLVSHQVHGUHWXUQHGDQGGLVSRVHGVKRXOGEHUHFRUGHGRQWKHVLWH¶V
'UXJ,QYHQWRU\/RJ5HIHUWRWKH3KDUPDF\0DQXDOIRUGHWDLOVRI,03PDQDJHPHQW

'RVH'HOD\DQG0RGLILFDWLRQ
(YHU\HIIRUWVKRXOGEHPDGHWRDGPLQLVWHUWKHVWXG\GUXJDFFRUGLQJWRWKHSODQQHGGRVHDQGVFKHGXOH4:
IURP&\FOH'D\5HDVRQVIRUGRVHPRGLILFDWLRQVRUGHOD\VWKHVXSSRUWLYHPHDVXUHVWDNHQDQGWKH
RXWFRPHZLOOEHGRFXPHQWHGLQWKHSDWLHQW
VFKDUWDQGUHFRUGHGLQWKHH&5)

'RVH0RGLILFDWLRQIRU%*%$
7KHUHZLOOEHQRGRVHUHGXFWLRQIRU%*%$LQWKLVVWXG\'HOD\VOHVVWKDQZHHNVZLOOEHSHUPLWWHG
,QYHVWLJDWRUVVKRXOGPDNHHYHU\HIIRUWWRPDLQWDLQGRVHLQWHQVLW\LQSDWLHQWV
3DWLHQWVPD\WHPSRUDULO\VXVSHQGVWXG\WUHDWPHQWLIWKH\H[SHULHQFHWR[LFLW\WKDWLVFRQVLGHUHGUHODWHGWR
%*%$DQGUHTXLUHVDGRVHWREHZLWKKHOG7KHSDWLHQWVVKRXOGUHVXPH%*%$WUHDWPHQWDVVRRQDV
SRVVLEOHDIWHUWKH$(VUHFRYHUWREDVHOLQHRU*UDGHZKLFKHYHULVPRUHVHYHUHZLWKLQZHHNVDIWHUODVW
GRVHRI%*%$7KHLQYHVWLJDWRUVKRXOGGLVFXVVZLWKWKHVSRQVRUPHGLFDOPRQLWRURUGHVLJQHHWR
GHWHUPLQHWKHVXEVHTXHQWGRVLQJYLVLWV,IWKHSDWLHQWLVXQDEOHWRUHVXPH%*%$ZLWKLQZHHNVDIWHU
WKHODVWGRVHRI%*%$WKHQWKHSDWLHQWVKRXOGEHGLVFRQWLQXHGIURPWUHDWPHQW
,QFDVHDSDWLHQWLVEHQHILWLQJIURPWKHVWXG\WUHDWPHQWZKLOHPHHWLQJWKHGLVFRQWLQXDWLRQFULWHULDUHVXPSWLRQ
RIVWXG\WUHDWPHQWPD\RFFXUXSRQGLVFXVVLRQDQGDJUHHPHQWZLWKVSRQVRUPHGLFDOPRQLWRU


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
,IWKHWLPLQJRIDSURWRFROPDQGDWHGVWXG\YLVLWFRLQFLGHVZLWKDKROLGD\ZHHNHQGRURWKHUHYHQWWKHYLVLW
VKRXOGEHVFKHGXOHGRQWKHQHDUHVWIHDVLEOHGDWHUHIHUWRWKHYLVLWZLQGRZLQ$SSHQGL[ZLWKWKH
VXEVHTXHQWYLVLWFRQGXFWHGDFFRUGLQJWRWKHSODQQHGVFKHGXOH4:IURP&\FOH'D\
0DQDJHPHQWRI%*%$LU$(VDQGLQIXVLRQUHODWHGUHDFWLRQVDUHGHVFULEHGLQ$SSHQGL[DQG
$SSHQGL[UHVSHFWLYHO\

35,25$1'&21&20,7$177+(5$3<

&RQFRPLWDQW7KHUDS\

3HUPLWWHG&RQFRPLWDQW0HGLFDWLRQVDQG7KHUDS\
0RVWFRQFRPLWDQWPHGLFDWLRQVDQGWKHUDSLHVGHHPHGQHFHVVDU\LQNHHSLQJZLWKWKHORFDOVWDQGDUGVRI
PHGLFDOFDUHDWWKHGLVFUHWLRQRIWKHLQYHVWLJDWRUIRUWKHVXSSRUWLYHFDUHHJDQWLHPHWLFVDQWLGLDUUKHDOVDQG
LQDSDWLHQW¶VLQWHUHVWDUHDOORZHG$OOFRQFRPLWDQWPHGLFDWLRQZLOOEHUHFRUGHGRQWKHH&5)LQFOXGLQJDOO
SUHVFULSWLRQRYHUWKHFRXQWHUKHUEDOVXSSOHPHQWVDQG,9PHGLFDWLRQVDQGIOXLGV
$OOFRQFRPLWDQWPHGLFDWLRQVUHFHLYHGZLWKLQGD\VEHIRUHWKHILUVWGRVHRIVWXG\WUHDWPHQWDQGGD\V
DIWHUWKHODVWLQIXVLRQRIVWXG\GUXJVKRXOGEHUHFRUGHG
3DWLHQWVZLWKDFWLYHKHSDWLWLV%GHILQHGDVHLWKHUGHWHFWDEOH+%V$JRU+%9'1$DWEDVHOLQHPXVWLQLWLDWH
WUHDWPHQWZHHNVSULRUWRILUVWGRVHDQGFRQWLQXHXQWLOPRQWKVDIWHUWKHODVWGRVH3DWLHQWVVKRXOGFRQWLQXH
HIIHFWLYHDQWLYLUDOWUHDWPHQWGXULQJWKHVWXG\WRGHFUHDVHSRWHQWLDOYLUDOUHDFWLYDWLRQULVN7HQRIRYLUDQG
HQWHFDYLUDUHUHFRPPHQGHGLQWKH$PHULFDQ$VVRFLDWLRQIRUWKH6WXG\RI/LYHU'LVHDVH$$6/'JXLGHOLQH
EHFDXVHWKH\ODFNUHVLVWDQFHZLWKORQJWHUPXVH7HUUDXOWHWDO$$6/','6$+&9*XLGDQFH3DQHO
7KHLQYHVWLJDWRUPLJKWXVHRWKHUDQWLYLUDODJHQWVLIDSSURSULDWHIROORZLQJORFDOJXLGHOLQHV
0DQDJHPHQWRIDQWLYLUDOWKHUDS\LVDWWKHGLVFUHWLRQRIWKHLQYHVWLJDWRUKRZHYHUUHDVRQVPXVWEHSURYLGHG
LQWKH&5)LIDSDWLHQWZLWKDFWLYHKHSDWLWLV%LVQRWWUHDWHGZLWKDQWLYLUDOSURSK\OD[LV
%HL*HQHGRHVQRWUHTXLUHSDWLHQWVZLWKDFWLYHKHSDWLWLV&WRUHFHLYHWUHDWPHQWZLWKDQWLYLUDOWKHUDS\3DWLHQWV
ZLWKGHWHFWDEOH+&951$DQGZKRDUHUHFHLYLQJWUHDWPHQWDWVFUHHQLQJVKRXOGUHPDLQRQFRQWLQXRXV
HIIHFWLYHDQWLYLUDOWKHUDS\GXULQJWKHVWXG\,QYHVWLJDWRUVFDQFRQVLGHUWUHDWPHQWZLWKVRIRVEXYLUDORQHRULQ
FRPELQDWLRQZLWKRWKHUDQWLYLUDOVIROORZLQJWKH$$6/'JXLGHOLQHKWWSVZZZKFYJXLGHOLQHVRUJRUWKH
ORFDOJXLGHOLQHVDVDSSURSULDWH+RZHYHULQWHUIHURQEDVHGWKHUDS\IRUHLWKHU+%9RU+&9LVQRWSHUPLWWHG
RQVWXG\3DWLHQWVZKRDUHJLYHQDQWLYLUDOWKHUDS\PXVWLQLWLDWHWUHDWPHQWDWOHDVWZHHNVSULRUWRILUVWGRVH
6\VWHPLFFRUWLFRVWHURLGVJLYHQIRUWKHFRQWURORILU$(VPXVWEHWDSHUHGJUDGXDOO\VHH$SSHQGL[DQGEHDW
QRQLPPXQRVXSSUHVVLYHGRVHVPJGD\RISUHGQLVRQHRUHTXLYDOHQWEHIRUHWKHQH[W%*%$
DGPLQLVWUDWLRQ7KHVKRUWWHUPXVHRIVWHURLGVDVSURSK\ODFWLFWUHDWPHQWVHJSDWLHQWVZLWKFRQWUDVWDOOHUJLHV
WRGLDJQRVWLFLPDJLQJFRQWUDVWG\HVLVSHUPLWWHG
%LVSKRVSKRQDWHVDQG5$1./LQKLELWRUVDUHDOORZHGIRUERQHPHWDVWDVHVLILQLWLDWHGSULRUWRHQUROOPHQWDQG
DWDVWDEOHGRVH%LVSKRVSKRQDWHVDUHSHUPLWWHGGXULQJWKHWULDOIRUDQRQPDOLJQDQWLQGLFDWLRQ
3DOOLDWLYHOLPLWHGILHOGUDGLDWLRQWKHUDS\VKRXOGQRWKDYHEHHQDGPLQLVWHUHGZLWKLQZHHNVEHIRUH
HQUROOPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
2QVWXG\SDOOLDWLYHOLPLWHGILHOGUDGLDWLRQWKHUDS\LVSHUPLWWHGEXWRQO\IRUSDLQFRQWURORUSURSK\OD[LVRI
ERQHIUDFWXUHWRVLWHVRIERQHGLVHDVHSUHVHQWDWEDVHOLQHSURYLGHGWKHIROORZLQJFULWHULDDUHPHW
x
5HSHDWLPDJLQJGHPRQVWUDWHVQRQHZVLWHVRIERQHPHWDVWDVHV
x
7KHOHVLRQEHLQJFRQVLGHUHGIRUSDOOLDWLYHUDGLDWLRQLVQRWDWDUJHWOHVLRQIRU5(&,67Y
x
7KHFDVHLVGLVFXVVHGZLWKVSRQVRUPHGLFDOPRQLWRUWRHQVXUHVWXG\FRPSOLDQFHDQGVSRQVRUPHGLFDO
PRQLWRUDJUHHVWKDWWKHFRQGLWLRQVUHTXLUHGWRUHFHLYHSDOOLDWLYHUDGLDWLRQDUHPHW
:KHQHYHUSRVVLEOHWKHVHSDWLHQWVVKRXOGKDYHDWXPRUDVVHVVPHQWRIWKHOHVLRQVEHIRUHUHFHLYLQJWKH
UDGLRWKHUDS\WRUXOHRXWSURJUHVVLRQRIGLVHDVH

3URKLELWHGRU5HVWULFWHG&RQFRPLWDQW0HGLFDWLRQV
7KHIROORZLQJPHGLFDWLRQVDUHSURKLELWHGRUUHVWULFWHGDWWKHWLPHRIVFUHHQLQJDQGGXULQJWKHDGPLQLVWUDWLRQ
RI%*%$
x
,PPXQRVXSSUHVVLYHDJHQWVH[FHSWWRWUHDWDWUHDWPHQWHPHUJHQWGUXJUHODWHG$(
x
6\VWHPLFFRUWLFRVWHURLGV!PJGDLO\SUHGQLVRQHRUHTXLYDOHQWH[FHSWWRWUHDWDWUHDWPHQW
HPHUJHQWGUXJUHODWHG$(RUIRUVKRUWWHUPXVHDVSURSK\ODFWLFWUHDWPHQW
x
$Q\FRQFXUUHQWDQWLQHRSODVWLFWKHUDS\LHFKHPRWKHUDS\KRUPRQDOWKHUDS\LPPXQRWKHUDS\RU
VWDQGDUGRULQYHVWLJDWLRQDODJHQWV>LQFOXGLQJ&KLQHVHKHUEDOPHGLFLQHDQG&KLQHVHSDWHQWPHGLFLQHV@
IRUWKHWUHDWPHQWRIFDQFHU
x
([WHQVLYHUDGLDWLRQWKHUDS\H[FHSWIRUORFDOSDOOLDWLYHUDGLDWLRQWKHUDS\WRERQHGHVFULEHGLQ
6HFWLRQ
x
/LYHYDFFLQHVZLWKLQGD\VSULRUWRWKHILUVWGRVHRIVWXG\GUXJDQGGD\VIROORZLQJWKHODVWGRVH
RIVWXG\GUXJ
x
+HUEDOUHPHGLHVZLWKLPPXQHVWLPXODWLQJSURSHUWLHVLHPLVWOHWRHH[WUDFWRUWKDWDUHNQRZQWR
SRWHQWLDOO\LQWHUIHUHZLWKOLYHURURWKHUPDMRURUJDQIXQFWLRQVLHK\SHULFLQ3DWLHQWVPXVWQRWLI\WKH
LQYHVWLJDWRURIDOOKHUEDOUHPHGLHVXVHGGXULQJWKHVWXG\
7KHIROORZLQJJXLGHOLQHVVKRXOGDOVREHIROORZHGGXULQJWKHVWXG\
x
:LWKWKHH[FHSWLRQRIGLDJQRVWLFELRSV\RIWXPRUWLVVXHRUSODFHPHQWRIDYHQRXVDFFHVVGHYLFHWKH
LQYHVWLJDWRUVKRXOGGLVFXVVZLWKWKHVSRQVRUPHGLFDOPRQLWRUDQ\SDWLHQWZKRUHTXLUHVVXUJHU\
GXULQJWKHVWXG\
x
3DWLHQWVVKRXOGDYRLGDOFRKROFRPSOHWHO\DQGVKRXOGDYRLGRWKHUDGGLFWLYHGUXJVGXULQJWKHVWXG\
+RZHYHU2SLDWHVDQGRWKHUPHGLFDWLRQVUHTXLUHGIRUSDOOLDWLYHPDQDJHPHQWRISDWLHQWVDUHDOORZHG
x
8VHRISRWHQWLDOO\KHSDWRWR[LFGUXJVLQSDWLHQWVZLWKLPSDLUHGKHSDWLFIXQFWLRQLQFOXGLQJ&KLOG3XJK
$FODVVLILFDWLRQVKRXOGEHFDUHIXOO\PRQLWRUHG3DWLHQWVPXVWQRWLI\WKHLQYHVWLJDWRURIDOOFRQFXUUHQW
PHGLFDWLRQVXVHGGXULQJWKHVWXG\

3RWHQWLDO,QWHUDFWLRQV%HWZHHQ%*%$DQG&RQFRPLWDQW0HGLFDWLRQV
7KHSRWHQWLDOIRUGUXJGUXJLQWHUDFWLRQEHWZHHQWKHVWXG\GUXJV%*%$DQGVPDOOPROHFXOHGUXJ
SURGXFWVLVYHU\ORZJLYHQ%*%$LVWKHUDSHXWLFPRQRFORQDODQWLERG\%HFDXVH%*%$LVH[SHFWHG
WREHGHJUDGHGLQWRDPLQRDFLGVDQGUHF\FOHLQWRRWKHUSURWHLQVLWLVXQOLNHO\WRKDYHDQHIIHFWRQGUXJ
PHWDEROL]LQJHQ]\PHVRUWUDQVSRUWHUV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

678'<$66(660(176$1'352&('85(6
$WDEOHRIVFKHGXOHGVWXG\DVVHVVPHQWVLVSURYLGHGLQ$SSHQGL[3DWLHQWVZLOOEHFORVHO\PRQLWRUHGIRU
VDIHW\DQGWROHUDELOLW\WKURXJKRXWWKHVWXG\$OODVVHVVPHQWVPXVWEHSHUIRUPHGDQGGRFXPHQWHGLQWKH
PHGLFDOUHFRUGDQGH&5)IRUHDFKSDWLHQW
'RVLQJZLOORFFXURQO\LIWKHFOLQLFDODVVHVVPHQWDQGORFDORUFHQWUDOODERUDWRU\WHVWYDOXHVWKDWPXVWEH
DYDLODEOHEHIRUHDQ\GRVLQJKDYHEHHQUHYLHZHGDQGIRXQGWREHDFFHSWDEOHSHUSURWRFROJXLGHOLQHV
,IWKHWLPLQJRIDSURWRFROPDQGDWHGVWXG\YLVLWFRLQFLGHVZLWKDKROLGD\ZHHNHQGRURWKHUHYHQWVWKHYLVLW
VKRXOGEHUHVFKHGXOHGIRUWKHQH[WIHDVLEOHGDWHWKHYLVLWZLQGRZLVSURYLGHGLQ$SSHQGL[ZLWKWKH
VXEVHTXHQWYLVLWFRQGXFWHGDFFRUGLQJWRWKHSODQQHGVFKHGXOH4:IURP&\FOH'D\

6FUHHQLQJ
6FUHHQLQJHYDOXDWLRQVZLOOEHSHUIRUPHGZLWKLQGD\VSULRUWRWKHILUVWGRVHRIVWXG\GUXJ3DWLHQWVZKR
DJUHHWRSDUWLFLSDWHZLOOVLJQWKHLQIRUPHGFRQVHQWIRUP,&)SULRUWRXQGHUJRLQJDQ\VFUHHQLQJSURFHGXUH
3DWLHQWVZKRKDYHDKLVWRU\RIVHULRXVRUVHYHUHSXOPRQDU\GLVHDVHRUDUHVXVSHFWHGWRKDYHVHULRXVRUVHYHUH
UHVSLUDWRU\FRQFXUUHQWLOOQHVVRUH[KLELWVLJQLILFDQWUHVSLUDWRU\V\PSWRPVVKRXOGXQGHUJRSXOPRQDU\IXQFWLRQ
WHVWVUHIHUWR$SSHQGL[IRUGHWDLOV
3DWLHQWVZKRKDYHZLWKLQPRQWKVEHIRUHILUVWVWXG\GUXJDGPLQLVWUDWLRQDQ\FOLQLFDOHYLGHQFHRISRUWDO
K\SHUWHQVLRQZLWKEOHHGLQJHVRSKDJHDORUJDVWULFYDULFHVRUWKRVHWKDWKDYHXQGHUJRQHDQ\PDMRUVXUJLFDO
SURFHGXUHZLWKLQGD\VEHIRUHILUVWVWXG\GUXJDGPLQLVWUDWLRQVKRXOGEHFRQVLGHUHGWRKDYHDVHULRXV
XQGHUO\LQJPHGLFDOFRQGLWLRQWKDWZRXOGEHXQIDYRUDEOHIRUWKHDGPLQLVWUDWLRQRIVWXG\GUXJ
6FUHHQLQJHYDOXDWLRQVPD\EHUHSHDWHGDVQHHGHGZLWKLQWKHVFUHHQLQJSHULRGWKHLQYHVWLJDWRUZLOODVVHVV
SDWLHQWHOLJLELOLW\DFFRUGLQJWRWKHODWHVWVFUHHQLQJDVVHVVPHQWUHVXOWV
5HVXOWVRIVWDQGDUGRIFDUHWHVWVRUH[DPLQDWLRQVSHUIRUPHGSULRUWRREWDLQLQJLQIRUPHGFRQVHQWDQG
GD\VSULRUWRVWXG\GUXJDGPLQLVWUDWLRQPD\EHXVHGIRUWKHSXUSRVHVRIVFUHHQLQJUDWKHUWKDQUHSHDWLQJ
WKHVWDQGDUGRIFDUHWHVWVXQOHVVRWKHUZLVHLQGLFDWHG
5HVFUHHQLQJXQGHUOLPLWHGFRQGLWLRQVPD\EHDOORZHGDIWHUFRQVXOWDWLRQZLWKWKHVSRQVRUSURYLGHGPLVVLQJ
DFULWHULRQLVQRWGXHWRDUDSLGO\GHWHULRUDWLQJFRQGLWLRQRU3'5HVFUHHQLQJLVDOORZHGRQO\RQFH
5HVFUHHQHGSDWLHQWVPXVWVLJQDQHZ,&)DQGZLOOUHFHLYHDQHZVFUHHQLQJQXPEHU
3URFHGXUHVFRQGXFWHGGXULQJWKHVFUHHQLQJYLVLWRQO\DUHGHVFULEHGLQWKLVVHFWLRQ)RUWKHGHVFULSWLRQRI
RWKHUDVVHVVPHQWVWKDWDUHFRQGXFWHGGXULQJVFUHHQLQJDVZHOODVWKURXJKRXWWKHVWXG\UHIHUWRWKHIROORZLQJ
VHFWLRQV6DIHW\$VVHVVPHQWV6HFWLRQ7XPRUDQG5HVSRQVH(YDOXDWLRQV6HFWLRQDQG%LRPDUNHUV
6HFWLRQ

'HPRJUDSKLF'DWDDQG0HGLFDO+LVWRU\
'HPRJUDSKLFGDWDZLOOLQFOXGHDJHRUGDWHRIELUWKJHQGHUDQGVHOIUHSRUWHGUDFHHWKQLFLW\
0HGLFDOKLVWRU\LQFOXGHVDQ\KLVWRU\RIFOLQLFDOO\VLJQLILFDQWGLVHDVHVXUJHU\RUFDQFHUKLVWRU\UHSURGXFWLYH
VWDWXVLHRIFKLOGEHDULQJSRWHQWLDORUQRFKLOGEHDULQJSRWHQWLDOKLVWRU\RIDOFRKROFRQVXPSWLRQLHSUHVHQFH
RUDEVHQFHDQGDOOPHGLFDWLRQVHJSUHVFULSWLRQGUXJVRYHUWKHFRXQWHUGUXJVKHUEDORUKRPHRSDWKLF


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
UHPHGLHVQXWULWLRQDOVXSSOHPHQWVXVHGE\WKHSDWLHQWZLWKLQGD\VEHIRUHWKHILUVWGRVHRIVWXG\GUXJ,I
DSSURSULDWHFOLQLFDOO\VLJQLILFDQWGLVHDVHVKRXOGEHJUDGHGDFFRUGLQJWR1&,&7&$(YDQGUHSRUWHGLQ
WKHH&5)V
&DQFHUKLVWRU\ZLOOLQFOXGHDQDVVHVVPHQWRISULRUVXUJHU\SULRUUDGLRWKHUDS\SULRUORFRUHJLRQDOWKHUDS\
SULRUGUXJWKHUDS\LQFOXGLQJVWDUWDQGVWRSGDWHVEHVWUHVSRQVHDQGUHDVRQIRUGLVFRQWLQXDWLRQ,QSDUWLFXODU
LQIRUPDWLRQPD\LQFOXGHEXWLVQRWOLPLWHGWRFROOHFWLRQRIVRXUFHGRFXPHQWDWLRQUHJDUGLQJSULRUV\VWHPLF
WUHDWPHQWIRU+&&UHVSRQVHWRWKHUDS\DQGGXUDWLRQRIUHVSRQVH5DGLRJUDSKLFVWXGLHVSHUIRUPHGSULRUWR
VWXG\HQWU\PD\EHFROOHFWHGIRUUHYLHZE\WKHLQYHVWLJDWRU

)HPDOHVRI&KLOGEHDULQJ3RWHQWLDODQG&RQWUDFHSWLRQ

'HILQLWLRQVRI³:RPHQRI&KLOGEHDULQJ3RWHQWLDO´³:RPHQRI1R&KLOGEHDULQJ3RWHQWLDO´
$VGHILQHGLQWKLVSURWRFROµZRPHQRIFKLOGEHDULQJSRWHQWLDO´DUHIHPDOHSDWLHQWVZKRDUHSK\VLRORJLFDOO\
FDSDEOHRIEHFRPLQJSUHJQDQWDSSOLFDEOHWRERWKVWXG\SDUWLFLSDQWVDQGVH[XDOSDUWQHUVRIPDOHSDUWLFLSDQWV
&RQYHUVHO\³ZRPHQRIQRFKLOGEHDULQJSRWHQWLDO´DUHGHILQHGDVIHPDOHSDWLHQWVPHHWLQJDQ\RIWKH
IROORZLQJFULWHULD
x
6XUJLFDOO\VWHULOHLHWKURXJKELODWHUDOVDOSLQJHFWRP\ELODWHUDORRSKRUHFWRP\RUK\VWHUHFWRP\
x
3RVWPHQRSDXVDOGHILQHGDV
o \HDUVRIDJHZLWKQRVSRQWDQHRXVPHQVHVIRUPRQWKV25
o \HDUVRIDJHZLWKQRVSRQWDQHRXVPHQVHVIRUPRQWKV$1'ZLWKDOODOWHUQDWLYH
PHGLFDOFDXVHVIRUODFNRIVSRQWDQHRXVPHQVWUXDWLRQFRQVLGHUHG$1'DIROOLFOHVWLPXODWLQJ
KRUPRQHFRQFHQWUDWLRQPHDVXUHPHQWLQWKHSRVWPHQRSDXVDOUDQJH,8P/GUDZQLQ
SDWLHQWVZKRDUHQRWXVLQJKRUPRQHUHSODFHPHQWWKHUDS\RUDQ\IRUPRIKRUPRQDO
FRQWUDFHSWLRQPHWKRG

&RQWUDFHSWLRQ*XLGHOLQHV
7KH&OLQLFDO7ULDOV)DFLOLWDWLRQ*URXSUHFRPPHQGDWLRQVUHODWHGWRFRQWUDFHSWLRQDQGSUHJQDQF\WHVWLQJLQ
FOLQLFDOWULDOVLQFOXGHWKHXVHRIKLJKO\HIIHFWLYHIRUPVRIELUWKFRQWURO&OLQLFDO7ULDOV)DFLOLWDWLRQ*URXS
7KHVHPHWKRGVLQFOXGHWKHIROORZLQJ
x
&RPELQHGHVWURJHQDQGSURJHVWRJHQFRQWDLQLQJKRUPRQDOFRQWUDFHSWLRQDVVRFLDWHGZLWKWKH
LQKLELWLRQRIRYXODWLRQ
o 2UDOLQWUDYDJLQDORUWUDQVGHUPDO
x
3URJHVWRJHQRQO\KRUPRQDOFRQWUDFHSWLRQDVVRFLDWHGZLWKWKHLQKLELWLRQRIRYXODWLRQ
o 2UDOLQMHFWDEOHLPSODQWDEOH
o 1RWH2UDOELUWKFRQWUROSLOOVDUHQRWFRQVLGHUHGDKLJKO\HIIHFWLYHIRUPRIELUWKFRQWURODQG
LIWKH\DUHVHOHFWHGWKH\PXVWEHXVHGZLWKDVHFRQGEDUULHUPHWKRGRIFRQWUDFHSWLRQVXFKDV
FRQGRPVZLWKRUZLWKRXWVSHUPLFLGH
x
$QLQWUDXWHULQHGHYLFH
x
,QWUDXWHULQHKRUPRQHUHOHDVLQJV\VWHP


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
x
%LODWHUDOWXEDORFFOXVLRQ
x
9DVHFWRPL]HGSDUWQHU
o 1RWH7KLVLVRQO\FRQVLGHUHGDKLJKO\HIIHFWLYHIRUPRIELUWKFRQWUROZKHQWKHYDVHFWRPL]HG
SDUWQHULVWKHVROHSDUWQHURIWKHVWXG\SDUWLFLSDQWDQGWKHUHKDVEHHQDPHGLFDODVVHVVPHQW
FRQILUPLQJVXUJLFDOVXFFHVV
o $VWHULOHPDOHLVRQHIRUZKRPD]RRVSHUPLDLQDVHPHQVDPSOHKDVEHHQGHPRQVWUDWHGDV
GHILQLWLYHHYLGHQFHRILQIHUWLOLW\
x
6H[XDODEVWLQHQFHGHILQHGDVUHIUDLQLQJIURPKHWHURVH[XDOLQWHUFRXUVHGXULQJWKHHQWLUHSHULRGRI
ULVNDVVRFLDWHGZLWKWKHVWXG\WUHDWPHQW127(7RWDOVH[XDODEVWLQHQFHVKRXOGRQO\EHXVHGDVD
FRQWUDFHSWLYHPHWKRGLILWLVLQOLQHZLWKWKHSDWLHQWV¶XVXDODQGSUHIHUUHGOLIHVW\OH3HULRGLF
DEVWLQHQFHHJFDOHQGDURYXODWLRQV\PSWRWKHUPDOSRVWRYXODWLRQPHWKRGVGHFODUDWLRQRI
DEVWLQHQFHIRUWKHGXUDWLRQRIH[SRVXUHWRVWXG\GUXJDQGZLWKGUDZDODUHQRWDFFHSWDEOHPHWKRGVRI
FRQWUDFHSWLRQ
2IQRWHEDUULHUFRQWUDFHSWLRQLQFOXGLQJPDOHDQGIHPDOHFRQGRPVZLWKRUZLWKRXWVSHUPLFLGHLVQRW
FRQVLGHUHGDKLJKO\HIIHFWLYHPHWKRGRIFRQWUDFHSWLRQDQGLIXVHGWKLVPHWKRGPXVWEHXVHGLQFRPELQDWLRQ
ZLWKRQHRIWKHKLJKO\HIIHFWLYHIRUPVRIELUWKFRQWUROOLVWHGDERYH

,QIRUPHG&RQVHQWDQG6FUHHQLQJ/RJ
9ROXQWDU\ZULWWHQLQIRUPHGFRQVHQWIRUSDUWLFLSDWLRQLQWKHVWXG\PXVWEHREWDLQHGEHIRUHSHUIRUPLQJDQ\
VWXG\VSHFLILFSURFHGXUHV,QIRUPHGFRQVHQWIRUPVIRUHQUROOHGSDWLHQWVDQGIRUSDWLHQWVZKRDUHVFUHHQHG
EXWQRWHQUROOHGZLOOEHPDLQWDLQHGDWWKHVWXG\VLWH
$OOVFUHHQLQJHYDOXDWLRQVPXVWEHFRPSOHWHGDQGUHYLHZHGWRFRQILUPWKDWSDWLHQWVPHHWDOOHOLJLELOLW\FULWHULD
EHIRUHUHFHLYLQJVWXG\GUXJ7KHLQYHVWLJDWRUZLOOPDLQWDLQDVFUHHQLQJORJWRUHFRUGGHWDLOVRIDOOSDWLHQWV
VFUHHQHGDQGWRFRQILUPHOLJLELOLW\RUUHFRUGUHDVRQVIRUVFUHHQLQJIDLOXUHDVDSSOLFDEOH

3XOPRQDU\)XQFWLRQ7HVWV
3DWLHQWVZKRDUHVXVSHFWHGRUNQRZQWRKDYHVHULRXVVHYHUHUHVSLUDWRU\FRQGLWLRQVRUH[KLELWVLJQLILFDQW
UHVSLUDWRU\V\PSWRPVXQUHODWHGWRWKHXQGHUO\LQJFDQFHUZLOOXQGHUJRSXOPRQDU\IXQFWLRQWHVWLQJZKLFKPD\
LQFOXGHEXWLVQRWOLPLWHGWRVSLURPHWU\DQGDVVHVVPHQWRIGLIIXVLRQFDSDFLW\GRQHGXULQJWKHVFUHHQLQJ
SHULRGWRDVVLVWWKHGHWHUPLQDWLRQRIVXLWDELOLW\RQWKHVWXG\

(QUROOPHQW

&RQILUPDWLRQRI(OLJLELOLW\
7KHLQYHVWLJDWRUZLOODVVHVVDQGWKHVSRQVRURUGHVLJQHHZLOOYHULI\WKHHOLJLELOLW\RIHDFKSDWLHQW$OO
VFUHHQLQJSURFHGXUHUHVXOWVDQGUHOHYDQWPHGLFDOKLVWRU\PXVWEHDYDLODEOHEHIRUHHOLJLELOLW\FDQEH
GHWHUPLQHG$OOLQFOXVLRQFULWHULDPXVWEHPHWDQGQRQHRIWKHH[FOXVLRQFULWHULDPD\DSSO\$Q
,QFOXVLRQ([FOXVLRQFKHFNOLVWZLOOEHUHYLHZHGE\WKHVSRQVRURUGHVLJQHHZKRZLOOSURYLGHDSSURYDOEHIRUH
HQUROOPHQW1RHOLJLELOLW\ZDLYHUVZLOOEHJUDQWHG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

3DWLHQW1XPEHULQJ
(DFKSDWLHQWHQUROOHGLQWKLVVWXG\ZLOOUHFHLYHDXQLTXHLGHQWLILFDWLRQQXPEHUDIWHUVLJQLQJWKH,&)3DWLHQW
QXPEHUVZLOOEHDVVLJQHGLQFKURQRORJLFDORUGHUE\VLWH2QFHDQLGHQWLILFDWLRQQXPEHUKDVEHHQDVVLJQHGWR
DSDWLHQWLWFDQQRWEHUHDVVLJQHGWRDQ\RWKHUSDWLHQW5HVFUHHQHGSDWLHQWVZLOOVLJQDQHZ,&)DQGUHFHLYHD
QHZLGHQWLILFDWLRQQXPEHU

%*%$'LVSHQVDWLRQ
%*%$ZLOOEHGLVSHQVHGDQGDGPLQLVWHUHGDVGHVFULEHGLQ6HFWLRQ

6DIHW\$VVHVVPHQWV

9LWDO6LJQV
9LWDOVLJQVZLOOLQFOXGHPHDVXUHPHQWVRISXOVHUDWHDQGEORRGSUHVVXUHV\VWROLFDQGGLDVWROLFZKLOHWKH
SDWLHQWLVLQDVHDWHGSRVLWLRQDIWHUUHVWLQJIRUPLQXWHVDQGERG\WHPSHUDWXUHÛ&
7RWKHH[WHQWIHDVLEOHEORRGSUHVVXUHZLOOEHWDNHQRQWKHVDPHDUPWKURXJKRXWWKHVWXG\$ODUJHFXII
VKRXOGEHXVHGIRUREHVHSDWLHQWV,IEORRGSUHVVXUHLV!PP+JLQDSDWLHQWZLWKRXWDKLVWRU\RI
K\SHUWHQVLRQRULQFUHDVHG!PP+JGLDVWROLFIURPEDVHOLQHPHDVXUHPHQWLQDSDWLHQWZLWKDSUHYLRXV
KLVWRU\RIK\SHUWHQVLRQWKHDVVHVVPHQWVKRXOGEHUHSHDWHGLQPLQXWHVIRUFRQILUPDWLRQ

3K\VLFDO([DPLQDWLRQV
$FRPSOHWHSK\VLFDOH[DPLQDWLRQLQFOXGLQJDQHYDOXDWLRQRIKHDGH\HVHDUVQRVHWKURDW
FDUGLRYDVFXODUGHUPDWRORJLFDOPXVFXORVNHOHWDOUHVSLUDWRU\JDVWURLQWHVWLQDODQG
QHXURORJLFDOV\VWHPVLVUHTXLUHGWREHSHUIRUPHGDWVFUHHQLQJ$Q\DEQRUPDOLW\LGHQWLILHGDWEDVHOLQHZLOOEH
JUDGHGDFFRUGLQJWR1&,&7&$(YDQGUHFRUGHGRQWKH0HGLFDO+LVWRU\H&5)ZLWKDSSURSULDWH
GLVHDVHFRQGLWLRQWHUPV
$WVXEVHTXHQWYLVLWVRUDVFOLQLFDOO\LQGLFDWHGOLPLWHGV\PSWRPGLUHFWHGSK\VLFDOH[DPLQDWLRQVZLOOEH
SHUIRUPHG&KDQJHVIURPEDVHOLQHZLOOEHUHFRUGHGLQSDWLHQWQRWHV1HZRUZRUVHQHGFOLQLFDOO\VLJQLILFDQW
DEQRUPDOLWLHVDUHWREHUHFRUGHGDV$(VRQWKH$GYHUVH(YHQWH&5)5HIHUWR6HFWLRQUHJDUGLQJ$(
GHILQLWLRQVDQGUHSRUWLQJDQGIROORZXSUHTXLUHPHQWV

(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS3HUIRUPDQFH6WDWXV
(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS3HUIRUPDQFH6WDWXV$SSHQGL[ZLOOEHDVVHVVHGGXULQJWKHVWXG\

/DERUDWRU\6DIHW\7HVWV
/RFDORUFHQWUDOODERUDWRU\DVVHVVPHQWVRQVHUXPFKHPLVWU\KHPDWRORJ\FRDJXODWLRQDQGXULQDO\VLVZLOOEH
FRQGXFWHGRIZKLFKFHUWDLQHOHPHQWVZLOOEHFROOHFWHGDVVSHFLILHGLQ$SSHQGL[,IODERUDWRU\WHVWVDW
VFUHHQLQJDUHQRWSHUIRUPHGZLWKLQGD\VSULRUWRWKHDGPLQLVWUDWLRQRIVWXG\GUXJRQ&\FOH'D\
FKHPLVWU\KHPDWRORJ\DQGFRDJXODWLRQWHVWVVKRXOGEHUHSHDWHGDQGUHYLHZHGSULRUWRWUHDWPHQW
DXWKRUL]DWLRQ+HPDWRORJ\DQGVHUXPFKHPLVWU\LQFOXGLQJOLYHUIXQFWLRQWHVWVDVVSHFLILHGLQ$SSHQGL[


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
VKRXOGEHSHUIRUPHGZHHNO\IRUWKHILUVWF\FOHVDQGDWWKHEHJLQQLQJRIVXEVHTXHQWF\FOHV$IWHU&\FOH
UHVXOWVDUHWREHUHYLHZHGZLWKLQGD\VEHIRUHVWXG\GUXJDGPLQLVWUDWLRQ
)XUWKHUPRUHWKHIROORZLQJWHVWVZLOOEHSHUIRUPHGDVVSHFLILHGLQ$SSHQGL[
x
8ULQHRUVHUXPSUHJQDQF\WHVWIRUZRPHQRIFKLOGEHDULQJSRWHQWLDOLQFOXGLQJSUHPHQRSDXVDO
ZRPHQZKRKDYHKDGDWXEDOOLJDWLRQUHIHUWR6HFWLRQIRUDGGLWLRQDOLQIRUPDWLRQ
x
7K\URLGIXQFWLRQWHVWLQJWK\URLGVWLPXODWLQJKRUPRQH>76+@IUHH7IUHH7
x
+HSDWLWLVVHURORJ\DQGYLUDOORDG
o +HSDWLWLV%VXUIDFHDQWLJHQ+%V$JDQWLERGLHVDJDLQVW+%V$JKHSDWLWLV%FRUHDQWLERG\
+%F$E
o +HSDWLWLV&YLUXV+&9VHURORJ\DQWL+&9
o +HSDWLWLV%YLUXV+%9GHR[\ULERQXFOHLFDFLG'1$DQG+&9ULERQXFOHLFDFLG51$
x
$OSKDIHWRSURWHLQELRPDUNHUDVVHVVPHQW
'HWDLOVDERXWVDPSOHFROOHFWLRQDQGVKLSPHQWZLOOEHSURYLGHGLQDVHSDUDWHLQVWUXFWLRQPDQXDO

(OHFWURFDUGLRJUDPV
7ZHOYHOHDG(&*UHFRUGLQJVDUHUHTXLUHGDWVFUHHQLQJDQGDVFOLQLFDOO\LQGLFDWHG:KHQFRLQFLGLQJZLWK
EORRGGUDZV(&*DVVHVVPHQWVKRXOGEHSHUIRUPHGSULRUWREORRGGUDZV$OO(&*UHFRUGLQJVVKRXOGEH
SHUIRUPHGDIWHUWKHSDWLHQWKDVEHHQUHVWLQJLQDVHPLUHFXPEHQWSRVLWLRQIRUDWOHDVWPLQXWHVDQGDUHSHDW
(&*VKRXOGEHSHUIRUPHGWRFRQILUPILQGLQJVLIDQ\
)RUVDIHW\PRQLWRULQJSXUSRVHVWKHLQYHVWLJDWRUPXVWUHYLHZVLJQDQGGDWHDOO(&*WUDFLQJV3DSHURU
HOHFWURQLFFRSLHVRI(&*WUDFLQJVZLOOEHNHSWDVSDUWRIWKHSDWLHQW
VSHUPDQHQWVWXG\ILOHDWWKHVLWH

$GYHUVH(YHQWV
$GYHUVHHYHQWVZLOOEHJUDGHGDQGUHFRUGHGWKURXJKRXWWKHVWXG\DFFRUGLQJWR1&,&7&$(Y1&,
&7&$(-XQH&KDUDFWHUL]DWLRQRIWR[LFLWLHVZLOOLQFOXGHVHYHULW\GXUDWLRQDQGWLPHWRRQVHWVHH
6HFWLRQ
$OO$(VLQFOXGLQJ6$(VZLOOEHFROOHFWHGDVGHVFULEHGLQ6HFWLRQ$WWKHHQGRIWUHDWPHQWRQJRLQJ$(V
FRQVLGHUHGUHODWHGWRVWXG\WUHDWPHQWZLOOEHIROORZHGXQWLOWKHHYHQWKDVUHVROYHGWREDVHOLQHRU*UDGH
WKHHYHQWLVDVVHVVHGE\WKHLQYHVWLJDWRUDVVWDEOHWKHSDWLHQWLVORVWWRIROORZXSWKHSDWLHQWZLWKGUDZV
FRQVHQWRULWKDVEHHQGHWHUPLQHGWKDWVWXG\WUHDWPHQWRUSDUWLFLSDWLRQLVQRWWKHFDXVHRIWKH$(

2SKWKDOPRORJLF([DPLQDWLRQ
(\HH[DPYLVXDODFXLW\WHVWDQGRSWLFDOFRKHUHQFHWRPRJUDSK\RUHTXLYDOHQWGLDJQRVWLFWHVWZLOOEH
DVVHVVHGE\DQDSSURSULDWHVSHFLDOLVWHJRSKWKDOPRORJLVWDW6FUHHQLQJ(\HH[DPYLVXDODFXLW\WHVWDQG
RSWLFDOFRKHUHQFHWRPRJUDSK\RUHTXLYDOHQWGLDJQRVWLFWHVWIRUUHWLQDOH[DPLQDWLRQFDSWXUHGDVVWDQGDUGRI
FDUHSULRUWRREWDLQLQJZULWWHQLQIRUPHGFRQVHQWDQGZLWKLQGD\VRIILUVWVWXG\GUXJDGPLQLVWUDWLRQPD\EH
XVHGIRUWKH6FUHHQLQJHYDOXDWLRQ3DWLHQWVZLOOXQGHUJRUHSHDWDVVHVVPHQWVE\DQDSSURSULDWHVSHFLDOLVW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
DSSUR[LPDWHO\HYHU\ZHHNVGD\VGXULQJVWXG\WUHDWPHQWDQGDILQDODVVHVVPHQWGD\VDIWHUWKH
ODVWGRVHRIVWXG\WUHDWPHQW
,QDGGLWLRQLQYHVWLJDWRUVVKRXOGVROLFLWSDWLHQWVUHJDUGLQJFKDQJHVLQYLVLRQYLVXDOGLVWXUEDQFHRURFXODU
LQIODPPDWLRQDWHDFKVFKHGXOHGVWXG\YLVLWGXULQJVWXG\WUHDWPHQW)RUDQ\FKDQJHLQYLVLRQUHIHUUDOWRDQ
DSSURSULDWHVSHFLDOLVWZLOOEHPDGHIRUIXUWKHUPDQDJHPHQWJXLGDQFHVHH$SSHQGL[

7XPRUDQG5HVSRQVH(YDOXDWLRQV
7XPRULPDJLQJZLOOEHSHUIRUPHGZLWKLQGD\VSULRUWRWKHILUVWVWXG\WUHDWPHQW5HVXOWVRIVWDQGDUGRI
FDUHWHVWVRUH[DPLQDWLRQVSHUIRUPHGSULRUWRREWDLQLQJLQIRUPHGFRQVHQWDQGGD\VSULRUWRVWXG\GUXJ
DGPLQLVWUDWLRQPD\EHXVHGIRUWKHSXUSRVHVRIVFUHHQLQJUDWKHUWKDQUHSHDWLQJWKHVWDQGDUGRIFDUHWHVWV
3DWLHQWVPXVWKDYHDWOHDVWRQHPHDVXUDEOHOHVLRQDFFRUGLQJWR5(&,67YDWEDVHOLQHSURYLGHGWKDW
x
7KHWDUJHWOHVLRQVVHOHFWHGKDYHQRWEHHQSUHYLRXVO\WUHDWHGZLWKORFDOWKHUDS\25
x
7KHWDUJHWOHVLRQVVHOHFWHGWKDWDUHZLWKLQWKHILHOGRISULRUORFDOWKHUDS\KDYHVXEVHTXHQWO\
SURJUHVVHGDVGHILQHGE\5(&,67Y
'XULQJWKHVWXG\WXPRULPDJLQJZLOOEHSHUIRUPHGDSSUR[LPDWHO\HYHU\ZHHNVGD\VLQWKHILUVW
ZHHNVDQGDSSUR[LPDWHO\HYHU\ZHHNVGD\VWKHUHDIWHU,QYHVWLJDWRUVPD\SHUIRUPDGGLWLRQDO
DVVHVVPHQWVLIFOLQLFDOO\LQGLFDWHG
6FUHHQLQJDVVHVVPHQWVDQGHDFKVXEVHTXHQWDVVHVVPHQWPXVWLQFOXGHFRPSXWHGWRPRJUDSK\&7VFDQVZLWK
RUDO,9FRQWUDVWXQOHVVFRQWUDLQGLFDWHGRUPDJQHWLFUHVRQDQFHLPDJLQJ05,RIWKHFKHVWDEGRPHQDQG
SHOYLV2WKHUNQRZQRUVXVSHFWHGVLWHVRIGLVHDVHPXVWEHLQFOXGHGLQWKHLPDJLQJDVVHVVPHQWVQHFNEUDLQ
HWF05,PD\EHXVHGZKHQLWLVWKHVWDQGDUGRIFDUHDWDVLWHUHJDUGOHVVRIZKHWKHURUQRW&7LV
FRQWUDLQGLFDWHG
7KHOLYHUVKRXOGEHLPDJHGXVLQJWULSKDVLFVFDQVLHODWHDUWHULDOSKDVHSRUWDOYHQRXVSKDVHDQG
GHOD\HGHTXLOLEULXPSKDVHDUHUHTXLUHG(YHU\HIIRUWVKRXOGEHPDGHWRNHHSWKHPHWKRGRORJ\FRQVLVWHQW
DFURVVYLVLWVIRUDVXEMHFWLHSKDVHVDFTXLUHGWLPLQJIRUHDFKSKDVHHWF6FDQQLQJGHWDLOVZLOOEHSURYLGHG
E\WKHLPDJLQJYHQGRULQDVHSDUDWHVLWHPDQXDO
x
,IDSDWLHQWLVNQRZQWRKDYHDFRQWUDLQGLFDWLRQWR&7FRQWUDVWPHGLDRUGHYHORSVDFRQWUDLQGLFDWLRQ
GXULQJWKHWULDODQRQFRQWUDVW&7RIWKHFKHVWSOXVDFRQWUDVWHQKDQFHG05,LISRVVLEOHRIDEGRPHQ
DQGSHOYLVVKRXOGEHSHUIRUPHG
x
,ID&7VFDQIRUWXPRUDVVHVVPHQWLVSHUIRUPHGLQDSRVLWURQHPLVVLRQWRPRJUDSK\3(7&7
VFDQQHUWKH&7DFTXLVLWLRQPXVWEHFRQVLVWHQWZLWKWKHVWDQGDUGVIRUDIXOOFRQWUDVWGLDJQRVWLF&7
VFDQ
x
%RQHVFDQV7HFKQHWLXPP>7&P@RUVRGLXPIOXRULGH3(71D)3(7VKRXOGEHSHUIRUPHGDW
VFUHHQLQJLIFOLQLFDOO\LQGLFDWHG,IERQHPHWDVWDVHVDUHSUHVHQWDWVFUHHQLQJDQGFDQQRWEHVHHQRQ
&7RU05,VFDQVDIWHUZDUGVRULIFOLQLFDOO\LQGLFDWHG7&PRU1D)3(7ERQHVFDQVVKRXOGEH
UHSHDWHGZKHQDFRPSOHWHUHVSRQVH&5LVVXVSHFWHGLQWDUJHWOHVLRQRUZKHQSURJUHVVLRQLQERQHLV
VXVSHFWHG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
x
&7VFDQVRIWKHQHFNRUH[WUHPLWLHVVKRXOGDOVREHSHUIRUPHGLIFOLQLFDOO\LQGLFDWHGDQGIROORZHG
WKURXJKRXWWKHVWXG\LIWKHUHLVHYLGHQFHRIPHWDVWDWLFGLVHDVHLQWKHVHUHJLRQVDWVFUHHQLQJ$WWKH
LQYHVWLJDWRU¶VGLVFUHWLRQRWKHUPHWKRGVRIDVVHVVPHQWRIWDUJHWOHVLRQDQGQRQWDUJHWOHVLRQVSHU
5(&,67YPD\EHXVHG
)RUVXEVHTXHQWWXPRUDVVHVVPHQWVWKHVDPHUDGLRJUDSKLFSURFHGXUHXVHGWRDVVHVVGLVHDVHVLWHVDWVFUHHQLQJ
DUHUHTXLUHGWREHXVHGWKURXJKRXWWKHVWXG\HJWKHVDPHFRQWUDVWSURWRFROIRU&7VFDQV,PDJLQJRIWKH
KHDGLVQRWUHTXLUHGGXULQJVXEVHTXHQWWXPRUDVVHVVPHQWLIWXPRUZDVQRWGHWHFWHGDWEDVHOLQH$OONQRZQ
VLWHVRIGLVHDVHPXVWEHGRFXPHQWHGDWVFUHHQLQJDQGUHDVVHVVHGDWHDFKVXEVHTXHQWWXPRUHYDOXDWLRQ
5HVSRQVHZLOOEHDVVHVVHGE\WKHLQYHVWLJDWRUXVLQJ5(&,67YVHH$SSHQGL[7KHVDPHHYDOXDWRU
VKRXOGSHUIRUPDVVHVVPHQWVLISRVVLEOHWRHQVXUHLQWHUQDOFRQVLVWHQF\DFURVVYLVLWV
$IWHUILUVWGRFXPHQWDWLRQRIUHVSRQVH&5RU35FRQILUPDWLRQRIWXPRUUHVSRQVHVKRXOGRFFXUDWZHHNVRU
ODWHUZHHNVDIWHUWKHILUVWUHVSRQVHRUDWWKHQH[WVFKHGXOHGDVVHVVPHQWWLPHSRLQW
)RULPPXQHWKHUDSLHVVXFKDV%*%$SVHXGRSURJUHVVLRQPD\RFFXUGXHWRLPPXQHFHOOLQILOWUDWLRQDQG
RWKHUPHFKDQLVPVOHDGLQJWRDSSDUHQWLQFUHDVHRIH[LVWLQJWXPRUPDVVHVRUDSSHDUDQFHRIQHZWXPRUOHVLRQV
WKXVIRU3'VXVSHFWHGE\WKHLQYHVWLJDWRUDVSVHXGRSURJUHVVLRQWKHIROORZLQJFULWHULDPXVWEHPHWLQRUGHUWR
WUHDWSDWLHQWVFRQWLQXRXVO\XQWLO3'LVFRQILUPHGE\UHSHDWHGLPDJLQJDWOHDVWZHHNVODWHUEXWQRWH[FHHGLQJ
ZHHNVIURPWKHGDWHRILQLWLDOGRFXPHQWDWLRQRI3'
x
$EVHQFHRIFOLQLFDOV\PSWRPVDQGVLJQVRIGLVHDVHSURJUHVVLRQLQFOXGLQJFOLQLFDOO\VLJQLILFDQWO\
ZRUVHQLQJRIODERUDWRU\YDOXHV
x
6WDEOH(&2*SHUIRUPDQFHVWDWXV
x
$EVHQFHRIUDSLGSURJUHVVLRQRIGLVHDVHRURISURJUHVVLRQDWDFULWLFDODQDWRPLFDOVLWHHJ
SURJUHVVLRQRIDVSLQDOOHVLRQZLWKLPSHQGLQJFRUGFRPSUHVVLRQWKDWQHFHVVLWDWHVXUJHQWDOWHUQDWLYH
PHGLFDOLQWHUYHQWLRQ
x
,QYHVWLJDWRUVPXVWREWDLQZULWWHQLQIRUPHGFRQVHQWIRUWUHDWPHQWEH\RQGUDGLRORJLFGLVHDVH
SURJUHVVLRQDQGLQIRUPSDWLHQWVWKDWWKLVSUDFWLFHLVQRWFRQVLGHUHGVWDQGDUGLQWKHWUHDWPHQWRI
FDQFHU
3DWLHQWVZLWKUDGLRJUDSKLFGLVHDVHSURJUHVVLRQWKDWLVFRQILUPHGDWDVXEVHTXHQWWXPRUDVVHVVPHQWPD\EH
FRQVLGHUHGIRUFRQWLQXHG%*%$WUHDWPHQWLQDJUHHPHQWZLWKWKHVSRQVRUPHGLFDOPRQLWRULIWKH\
FRQWLQXHWRPHHWWKHFULWHULDDERYHDQGKDYHHYLGHQFHRIFOLQLFDOEHQHILW7KHGHFLVLRQWRFRQWLQXHVWXG\GUXJ
EH\RQGLQLWLDOLQYHVWLJDWRUDVVHVVHGSURJUHVVLRQPXVWEHGLVFXVVHGZLWKWKHVSRQVRUPHGLFDOPRQLWRUDQG
GRFXPHQWHGLQWKHVWXG\UHFRUGV7KHSDWLHQWPXVWVLJQDQ,&)IRUFRQWLQXHGWUHDWPHQWEH\RQG5(&,67Y
SURJUHVVLRQ
3DWLHQWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWIRUUHDVRQVRWKHUWKDQGLVHDVHSURJUHVVLRQHJWR[LFLW\ZLOO
FRQWLQXHWRXQGHUJRWXPRUDVVHVVPHQWVIROORZLQJWKHRULJLQDOSODQXQWLOWKHSDWLHQWEHJLQVDVXEVHTXHQW
DQWLFDQFHUWUHDWPHQWH[SHULHQFHVGLVHDVHSURJUHVVLRQZLWKGUDZVFRQVHQWGLHVRUXQWLOWKHVWXG\WHUPLQDWHV
ZKLFKHYHURFFXUVILUVW
7XPRUDVVHVVPHQWVDUHUHTXLUHGWREHSHUIRUPHGRQVFKHGXOHUHJDUGOHVVRIZKHWKHUVWXG\WUHDWPHQWKDVEHHQ
DGPLQLVWHUHGRUKHOG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

+HDOWK5HODWHG4XDOLW\RI/LIH$VVHVVPHQW
3DWLHQWVZLOOEHDVNHGWRFRPSOHWHWKH(257&4/4&(257&4/4+&&DQG(4'/
TXHVWLRQQDLUHVEHIRUHDQ\FOLQLFDODFWLYLWLHVDUHSHUIRUPHGGXULQJRQVWXG\FOLQLFYLVLWVDFFRUGLQJWRWKH
VFKHGXOHLQ$SSHQGL[7KHTXHVWLRQQDLUHVZLOOEHSURYLGHGLQWKHSDWLHQW¶VSUHIHUUHGODQJXDJH

3KDUPDFRNLQHWLFDQG$QWL'UXJ$QWLERG\7HVWLQJ
3KDUPDFRNLQHWLFVDPSOHVZLOOEHFROOHFWHGDWWKHWLPHSRLQWVSUHVHQWHGLQ$SSHQGL[3URFHGXUHVIRU
FROOHFWLRQRI3.VDPSOHVDUHGHVFULEHGLQWKHODERUDWRU\PDQXDO3UHGRVHZLWKLQPLQXWHVEHIRUHVWDUWLQJ
LQIXVLRQVDPSOHVDUHUHTXLUHGWREHFROOHFWHGDW'D\RI&\FOHVDQGSRVWGRVHZLWKLQ
PLQXWHVDIWHUFRPSOHWLQJ%*%$LQIXVLRQVDPSOHVDUHUHTXLUHGWREHFROOHFWHGDW'D\RI&\FOHVDQG
$QDGGLWLRQDO3.VDPSOHLVUHTXLUHGWREHFROOHFWHGDWWKHPDQGDWRU\6DIHW\)ROORZXS9LVLW$OOWURXJK
VDPSOHVVKRXOGEHGUDZQDWWKHVDPHWLPHDVEORRGFROOHFWLRQIRUDQWL%*%$DQWLERGLHV6KRXOGD
VXEMHFWSUHVHQWZLWKD*UDGHLU$(UHIHUWR6HFWLRQDGGLWLRQDOEORRG3.VDPSOHVZLOOEHWDNHQWR
GHWHUPLQHWKHSODVPDFRQFHQWUDWLRQRI%*%$
%*%$PD\HOLFLWDQLPPXQHUHVSRQVH3DWLHQWVZLWKVLJQVRIDQ\SRWHQWLDOLPPXQHUHVSRQVHWR
%*%$ZLOOEHFORVHO\PRQLWRUHG9DOLGDWHGVFUHHQLQJDQGFRQILUPDWRU\DVVD\VZLOOEHHPSOR\HGWR
GHWHFW$'$VDWPXOWLSOHWLPHSRLQWVWKURXJKRXWWKHVWXG\VHH$SSHQGL[7KHLPPXQRJHQLFLW\HYDOXDWLRQ
ZLOOXWLOL]HDULVNEDVHGLPPXQRJHQLFLW\VWUDWHJ\.RUHQHWDO:RUREHFDQG5RVHQEHUJD
:RUREHFDQG5RVHQEHUJEWRFKDUDFWHUL]H$'$UHVSRQVHVWR%*%$LQVXSSRUWRIWKHFOLQLFDO
GHYHORSPHQWSURJUDP

%LRPDUNHUV
6KLSSLQJVWRUDJHDQGKDQGOLQJRIEORRGDUFKLYDOWXPRUIUHVKWXPRUDQGOHIWRYHUWXPRUWLVVXHIRUWKH
DVVHVVPHQWRIELRPDUNHUVZLOOEHPDQDJHGWKURXJKDFHQWUDOODERUDWRU\5HIHUWRWKHODERUDWRU\PDQXDOIRU
GHWDLOVRIVDPSOHKDQGOLQJ
$UFKLYDOWXPRUWLVVXHVIRUPDOLQIL[HGSDUDIILQHPEHGGHGEORFNRUXQVWDLQHGVOLGHVDUHUHTXLUHGLI
DYDLODEOHIRUELRPDUNHUDQDO\VLV$IUHVKWXPRUELRSV\DWEDVHOLQHLIDFFHVVLEOHDQGDSSURSULDWHLIDUFKLYDO
WLVVXHLVQRWDYDLODEOHLVUHFRPPHQGHG,QDGGLWLRQWR3'/H[SUHVVLRQRWKHUH[SORUDWRU\SUHGLFWLYH
ELRPDUNHUVVXFKDVJHQHH[SUHVVLRQSURILOLQJWKDWDUHUHODWHGWRUHVSRQVHRUFOLQLFDOEHQHILWRI%*%$
PD\DOVREHHYDOXDWHG)RUIUHVKELRSV\VSHFLPHQVDFFHSWDEOHVDPSOHVLQFOXGHFRUHQHHGOHELRSVLHVIRUGHHS
WXPRUWLVVXHRUH[FLVLRQDOLQFLVLRQDOSXQFKRUIRUFHSVELRSVLHVIRUFXWDQHRXVVXEFXWDQHRXVRUPXFRVDO
OHVLRQV
7XPRUWLVVXHVKRXOGEHRIJRRGTXDOLW\EDVHGRQWRWDODQGYLDEOHWXPRUFRQWHQW)LQHQHHGOHDVSLUDWLRQ
EUXVKLQJFHOOSHOOHWVIURPSOHXUDOHIIXVLRQDQGODYDJHVDPSOHVDUHQRWDFFHSWDEOH

9LVLW:LQGRZV
$OOYLVLWVPXVWRFFXUZLWKLQGD\VIURPWKHVFKHGXOHGGDWHXQOHVVRWKHUZLVHQRWHGLQ$SSHQGL[$OO
DVVHVVPHQWVZLOOEHSHUIRUPHGRQWKHGD\RIWKHVSHFLILHGYLVLWXQOHVVDQDFFHSWDEOHWLPHZLQGRZLV
VSHFLILHG$VVHVVPHQWVVFKHGXOHGRQWKHGD\RIVWXG\WUHDWPHQWDGPLQLVWUDWLRQ'D\RIHDFKF\FOHVKRXOG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
EHSHUIRUPHGSULRUWRVWXG\WUHDWPHQWLQIXVLRQGRVHXQOHVVRWKHUZLVHQRWHG/DERUDWRU\UHVXOWVDUHUHTXLUHG
WREHUHYLHZHGSULRUWRGRVLQJ
,IWKHWLPLQJRIDSURWRFROPDQGDWHGVWXG\YLVLWFRLQFLGHVZLWKDKROLGD\ZHHNHQGRURWKHUHYHQWVWKHYLVLW
VKRXOGEHVFKHGXOHGRQWKHQHDUHVWIHDVLEOHGDWHWKHYLVLWZLQGRZLVSURYLGHGLQ$SSHQGL[ZLWKWKH
VXEVHTXHQWYLVLWSHUIRUPHGDFFRUGLQJWRWKHSODQQHGVFKHGXOH4:IURP&\FOH'D\

8QVFKHGXOHG9LVLWV
8QVFKHGXOHGYLVLWVPD\EHSHUIRUPHGDWDQ\WLPHDWWKHSDWLHQW¶VRULQYHVWLJDWRU¶VUHTXHVWDQGPD\LQFOXGH
YLWDOVLJQVIRFXVHGSK\VLFDOH[DPLQDWLRQ(&2*SHUIRUPDQFHVWDWXV$(UHYLHZFRQFRPLWDQWPHGLFDWLRQV
DQGSURFHGXUHVUHYLHZUDGLRJUDSKLFDVVHVVPHQWVSK\VLFDOH[DPLQDWLRQDQGKHPDWRORJ\DQGFKHPLVWU\
ODERUDWRU\DVVHVVPHQWV7KHGDWHDQGUHDVRQIRUWKHXQVFKHGXOHGYLVLWPXVWEHUHFRUGHGLQWKHVRXUFH
GRFXPHQWDWLRQ
,IDQXQVFKHGXOHGYLVLWLVQHFHVVDU\WRDVVHVVWR[LFLW\RUIRUVXVSHFWHGGLVHDVHSURJUHVVLRQWKHQGLDJQRVWLF
WHVWVPD\EHSHUIRUPHGEDVHGRQLQYHVWLJDWRUDVVHVVPHQWDVDSSURSULDWHDQGWKHUHVXOWVRIWKHVHWHVWVVKRXOG
EHHQWHUHGRQWKHXQVFKHGXOHGYLVLWH&5)

6DIHW\)ROORZXS9LVLW
3DWLHQWVZKRGLVFRQWLQXHWUHDWPHQWIRUDQ\UHDVRQZLOOEHDVNHGWRUHWXUQWRWKHFOLQLFIRUD6DIHW\)ROORZXS
YLVLWZLWKLQGD\VGD\VDIWHUWKHODVWGRVHRIVWXG\GUXJ,QDGGLWLRQWHOHSKRQHFRQWDFWVZLWKSDWLHQWV
VKRXOGEHFRQGXFWHGWRDVVHVVLU$(VDQGFRQFRPLWDQWPHGLFDWLRQVDWGD\VGD\VDIWHUWKHODVWGRVH
RIVWXG\GUXJUHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\
$IWHUGD\VLQYHVWLJDWRUVVKRXOGUHSRUWDQ\6$(VRU$(VWKDWDUHEHOLHYHGWREHUHODWHGWRVWXG\GUXJLI
WKH\EHFRPHDZDUHRIWKHP3DWLHQWVZKRGLVFRQWLQXHVWXG\GUXJGXHWRDGUXJUHODWHG$(ZLOOEHIROORZHG
XQWLOWKHUHVROXWLRQRIWKH$(WR*UDGHEDVHOLQHVWDELOL]DWLRQRULQLWLDWLRQRIDQHZWUHDWPHQW
ZKLFKHYHUFRPHVILUVW
$Q\(QGRI7UHDWPHQW(27YLVLWDWZKLFKDUHVSRQVHDVVHVVPHQWVKRZHGSURJUHVVLYHGLVHDVHUHVXOWLQJLQ
SDWLHQWGLVFRQWLQXDWLRQPD\EHXVHGDVWKH6DIHW\)ROORZXSYLVLWLIDSSURSULDWH,IWKHLQWHUYDOEHWZHHQWKH
(27YLVLWDQGWKH6DIHW\)ROORZXSYLVLWLVOHVVWKDQGD\VWKH(27YLVLWFDQEHGHOD\HGDQGFRPELQHGZLWK
WKH6DIHW\)ROORZXSYLVLW3DWLHQWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWSULRUWRGLVHDVHSURJUHVVLRQZLOOKDYH
WKHLUWXPRUVDVVHVVHGDVRXWOLQHGLQ6HFWLRQ
6HH$SSHQGL[IRUDVVHVVPHQWVWREHSHUIRUPHGDWWKH6DIHW\)ROORZXS9LVLW

6XUYLYDO)ROORZXS
)ROORZLQJGLVFRQWLQXDWLRQRIWKHVWXG\WUHDWPHQWDOOSDWLHQWVZLOOEHIROORZHGIRUVXUYLYDOVWDWXVEHJLQQLQJ
PRQWKVGD\VDIWHUWKH6DIHW\)ROORZXSYLVLWRUDVGLUHFWHGE\WKHVSRQVRU,QIRUPDWLRQRQVXUYLYDO
IROORZXSDQGWKHVXEVHTXHQWDQWLFDQFHUWUHDWPHQWZLOOEHFROOHFWHGYLDWHOHSKRQHFDOOVSDWLHQWPHGLFDO
UHFRUGVDQGRUFOLQLFYLVLWVDSSUR[LPDWHO\HYHU\PRQWKVGD\VXQWLOGHDWKORVVWRIROORZXS
ZLWKGUDZDORIFRQVHQWRUVWXG\WHUPLQDWLRQE\WKHVSRQVRUZKLFKHYHURFFXUVILUVW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

3DWLHQW7UHDWPHQW6WXG\DQG6LWH'LVFRQWLQXDWLRQ
3DWLHQWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWEXWZKRKDYHQRWZLWKGUDZQFRQVHQWIRUIROORZXSVKRXOGEH
IROORZHGIRUDVVHVVPHQWVRIDQWLWXPRUDFWLYLW\6HFWLRQVDIHW\6HFWLRQDQGVXUYLYDO6HFWLRQ
LISRVVLEOH

'LVFRQWLQXDWLRQIURP6WXG\7UHDWPHQW
3DWLHQWVKDYHWKHULJKWWRYROXQWDULO\ZLWKGUDZIURPWKHVWXG\RUGLVFRQWLQXHVWXG\WUHDWPHQWDWDQ\WLPHIRU
DQ\UHDVRQ,QDGGLWLRQWKHLQYHVWLJDWRUKDVWKHULJKWWRGLVFRQWLQXHDSDWLHQWIURPWKHVWXG\WUHDWPHQWDWDQ\
WLPH3DWLHQWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWVKRXOGEHIROORZHGIRUDVVHVVPHQWVRIDQWLWXPRUDFWLYLW\
VDIHW\DQGVXUYLYDOLISRVVLEOH
(YHU\HIIRUWVKRXOGEHPDGHWRREWDLQLQIRUPDWLRQRQSDWLHQWVZKRGLVFRQWLQXHWKHVWXG\WUHDWPHQW7KH
SULPDU\UHDVRQIRUGLVFRQWLQXDWLRQIURPWKHVWXG\WUHDWPHQWVKRXOGEHGRFXPHQWHGRQWKHDSSURSULDWHH&5)
3DWLHQWVPXVWGLVFRQWLQXHVWXG\WUHDWPHQWIRUUHDVRQVZKLFKPD\LQFOXGHEXWDUHQRWOLPLWHGWRWKH
IROORZLQJ
x
3DWLHQWZLWKGUDZDORIFRQVHQW
x
3UHJQDQF\
x
$Q\PHGLFDOFRQGLWLRQWKDWWKHLQYHVWLJDWRURUVSRQVRUGHWHUPLQHVPD\MHRSDUGL]HWKHSDWLHQW¶V
VDIHW\LIKHRUVKHZHUHWRFRQWLQXHWKHVWXG\WUHDWPHQW
x
8VHRIDQ\FRQFXUUHQWDQWLQHRSODVWLFWKHUDS\LHFKHPRWKHUDS\KRUPRQDOWKHUDS\LPPXQRWKHUDS\
RUVWDQGDUGRULQYHVWLJDWLRQDODJHQWV>LQFOXGLQJ&KLQHVHKHUEDOPHGLFLQHDQG&KLQHVHSDWHQW
PHGLFLQHV@IRUWKHWUHDWPHQWRIFDQFHU
x
3DWLHQWQRQFRPSOLDQFH
3DWLHQWVZLOOEHSHUPLWWHGWRFRQWLQXHVWXG\GUXJVLISVHXGRSURJUHVVLRQLVVXVSHFWHGDQGRUWKHUHLVD
UHDVRQDEOHEHOLHIWKDWWKHSDWLHQWFRXOGGHULYHEHQHILWIURPVWXG\GUXJDIWHU5(&,67YFULWHULDIRU3'DUH
PHWSURYLGHGWKH\PHHWDOOFULWHULDVSHFLILHGLQ6HFWLRQ7KHGHFLVLRQWRFRQWLQXHVWXG\GUXJVEH\RQG
LQLWLDOLQYHVWLJDWRUDVVHVVHGSURJUHVVLRQPXVWEHGLVFXVVHGZLWKWKHVSRQVRU¶VPHGLFDOPRQLWRUDQG
GRFXPHQWHGLQWKHVWXG\UHFRUGV

(QGRI6WXG\
6WXG\WHUPLQDWLRQLVGHILQHGDVWKHWLPHSRLQWZKHQGDWDFROOHFWLRQIRUWKHSDWLHQWZLOOVWRS7KHVWXG\ZLOO
FRQWLQXHXQWLOWKHODVWSDWLHQWKDVGLHGEHFRPHVORVWWRIROORZXSRUZLWKGUDZVIURPVWXG\RUXQWLOVSRQVRU
GHFLGHVWRWHUPLQDWHWKHVWXG\
7KHVSRQVRUKDVWKHULJKWWRWHUPLQDWHWKLVVWXG\DWDQ\WLPH5HDVRQVIRUWHUPLQDWLQJWKHVWXG\HDUO\PD\
LQFOXGHEXWDUHQRWOLPLWHGWRWKHIROORZLQJ
x
7KHLQFLGHQFHRUVHYHULW\RI$(VLQWKLVRURWKHUVWXGLHVLQGLFDWHVDSRWHQWLDOKHDOWKKD]DUGWRSDWLHQWV
x
2YHUDOOSDWLHQWHQUROOPHQWLVXQVDWLVIDFWRU\


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7KHVSRQVRUZLOOQRWLI\HDFKLQYHVWLJDWRULIDGHFLVLRQLVPDGHWRWHUPLQDWHWKHVWXG\6KRXOGWKLVEH
QHFHVVDU\SUHPDWXUHO\GLVFRQWLQXHGSDWLHQWVVKRXOGEHVHHQDVVRRQDVSRVVLEOHIRUDQ(27YLVLWDQG6DIHW\
)ROORZXSYLVLW
7KHLQYHVWLJDWRUPD\EHLQIRUPHGRIDGGLWLRQDOSURFHGXUHVWREHIROORZHGLQRUGHUWRHQVXUHWKDWDGHTXDWH
FRQVLGHUDWLRQLVJLYHQWRWKHSURWHFWLRQRIWKHSDWLHQW¶VLQWHUHVWV7KHLQYHVWLJDWRUZLOOEHUHVSRQVLEOHIRU
LQIRUPLQJ,QVWLWXWLRQDO5HYLHZ%RDUGV,5%VDQGRU,QGHSHQGHQW(WKLFV&RPPLWWHHV,(&VRIWKHHDUO\
WHUPLQDWLRQRIWKHWULDO
3DWLHQWVZKRLQWKHRSLQLRQRIWKH,QYHVWLJDWRUFRQWLQXHWREHQHILWIURPWLVOHOL]XPDEDWVWXG\WHUPLQDWLRQ
ZLOOEHRIIHUHGWKHRSWLRQWRFRQWLQXHWUHDWPHQWLQDFRPSDQ\VSRQVRUHGFOLQLFDOWULDOXQWLOLWLVFRPPHUFLDOO\
DYDLODEOHLQWKHFRXQWU\7KHVSRQVRUKDVWKHULJKWWRFORVHDVLWHDWDQ\WLPH7KHVLWHZLOOEHQRWLILHGRIWKH
GHFLVLRQLQDGYDQFH5HDVRQVIRUFORVLQJDVLWHPD\LQFOXGHEXWDUHQRWOLPLWHGWRWKHIROORZLQJ
x
([FHVVLYHO\VORZUHFUXLWPHQW
x
3RRUSURWRFRODGKHUHQFH
x
,QDFFXUDWHRULQFRPSOHWHGDWDUHFRUGLQJ
x
*RRG&OLQLFDO3UDFWLFH*&3QRQFRPSOLDQFH
x
6WXG\DFWLYLW\LVFRPSOHWHGLHDOOSDWLHQWVKDYHFRPSOHWHGDQGDOOREOLJDWLRQVKDYHEHHQIXOILOOHG

6$)(7<021,725,1*$1'5(3257,1*
7KHLQYHVWLJDWRULVUHVSRQVLEOHIRUWKHPRQLWRULQJDQGGRFXPHQWDWLRQRIHYHQWVWKDWPHHWWKHFULWHULDDQG
GHILQLWLRQRIDQ$(RU6$(DVSURYLGHGLQWKLVSURWRFRO

5LVNV$VVRFLDWHGZLWK%*%$
%*%$LVDQLQYHVWLJDWLRQDODJHQWWKDWLVFXUUHQWO\LQFOLQLFDOGHYHORSPHQW/LPLWHGVDIHW\GDWDDUH
DYDLODEOHLQSDWLHQWVDQGWKHIXOOVDIHW\SURILOHKDVQRWEHHQFKDUDFWHUL]HG7KHIROORZLQJUHFRPPHQGDWLRQLV
EDVHGRQUHVXOWVIURPQRQFOLQLFDODQGFOLQLFDOVWXGLHVZLWK%*%$DQGSXEOLVKHGGDWDRQRWKHUPROHFXOHV
ZLWKLQWKHVDPHELRORJLFFODVV
7KH3'/3'SDWKZD\LVLQYROYHGLQSHULSKHUDOLPPXQHWROHUDQFHWKHUHIRUHVXFKWKHUDS\PD\LQFUHDVH
WKHULVNRILU$(VVSHFLILFDOO\WKHLQGXFWLRQRUHQKDQFHPHQWRIDXWRLPPXQHFRQGLWLRQV$VXPPDU\RI$(V
REVHUYHGZLWKDQWL3'WKHUDS\LVSUHVHQWHGLQ6HFWLRQ
$OWKRXJKPRVWLU$(VREVHUYHGZLWKLPPXQRPRGXODWRU\DJHQWVKDYHEHHQPLOGDQGVHOIOLPLWLQJVXFKHYHQWV
VKRXOGEHUHFRJQL]HGHDUO\DQGWUHDWHGSURPSWO\WRDYRLGSRWHQWLDOPDMRUFRPSOLFDWLRQV*XLGDQFHIRU
HYDOXDWLRQDQGPDQDJHPHQWRIVXVSHFWHGLU$(VDUHSURYLGHGLQ6HFWLRQDQG$SSHQGL[

*HQHUDO3ODQWR0DQDJH6DIHW\&RQFHUQV

(OLJLELOLW\&ULWHULD
(OLJLELOLW\FULWHULDZHUHVHOHFWHGWRJXDUGWKHVDIHW\RISDWLHQWVLQWKLVWULDO5HVXOWVIURPWKHQRQFOLQLFDO
WR[LFRORJ\VWXGLHVDQGFOLQLFDOGDWDZLWK%*%$DVZHOODVWKHQRQFOLQLFDOFOLQLFDOGDWDIURPRWKHU


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
3'/3'LQKLELWRUVZHUHWDNHQLQWRDFFRXQW6SHFLILFDOO\SDWLHQWVDWULVNIRUVWXG\HPHUJHQWDFWLYH
DXWRLPPXQHGLVHDVHVRUKLVWRU\RIDXWRLPPXQHGLVHDVHVWKDWPD\UHODSVHSDWLHQWVZKRKDYHXQGHUJRQH
DOORJHQLFVWHPFHOORURUJDQWUDQVSODQWDWLRQDQGSDWLHQWVZKRKDYHUHFHLYHGDOLYHYLUDOYDFFLQHZLWKLQ
GD\VEHIRUHVWXG\GUXJDGPLQLVWUDWLRQDUHH[FOXGHGIURPWKHVWXG\VHH6HFWLRQIRUWKHIXOOOLVWRI
H[FOXVLRQFULWHULD

6DIHW\0RQLWRULQJ3ODQ
6DIHW\ZLOOEHHYDOXDWHGLQWKLVVWXG\WKURXJKWKHPRQLWRULQJRIDOOVHULRXVDQGQRQVHULRXV$(VGHILQHGDQG
JUDGHGDFFRUGLQJWR1&,&7&$(Y3DWLHQWVZLOOEHDVVHVVHGIRUVDIHW\LQFOXGLQJODERUDWRU\YDOXHV
DFFRUGLQJWRWKHVFKHGXOHLQ$SSHQGL[&OLQLFDOODERUDWRU\UHVXOWVPXVWEHUHYLHZHGSULRUWRWKHVWDUWRI
HDFKF\FOH
,QWKLVVWXG\DOOHQUROOHGSDWLHQWVZLOOEHHYDOXDWHGFOLQLFDOO\DQGZLWKVWDQGDUGODERUDWRU\WHVWVEHIRUHDQGDW
UHJXODULQWHUYDOVGXULQJWKHLUSDUWLFLSDWLRQLQWKLVVWXG\6DIHW\HYDOXDWLRQVZLOOFRQVLVWRIPHGLFDO
LQWHUYLHZVUHFRUGLQJRI$(VSK\VLFDOH[DPLQDWLRQVODERUDWRU\PHDVXUHPHQWVKHPDWRORJ\FKHPLVWU\HWF
DQGRWKHUDVVHVVPHQWV,QDGGLWLRQSDWLHQWVZLOOEHFORVHO\PRQLWRUHGIRUWKHGHYHORSPHQWRIDQ\VLJQVRU
V\PSWRPVRIDXWRLPPXQHFRQGLWLRQVDQGLQIHFWLRQ
6HUXPVDPSOHVZLOOEHGUDZQIRUGHWHUPLQDWLRQRI$'$VWR%*%$$GPLQLVWUDWLRQRI%*%$ZLOO
EHSHUIRUPHGLQDVHWWLQJZKHUHHPHUJHQF\PHGLFDOHTXLSPHQWDQGVWDIIZKRDUHWUDLQHGWRUHVSRQGWR
PHGLFDOHPHUJHQFLHVDUHDYDLODEOH
$OO$(VZLOOEHUHFRUGHGGXULQJWKHWULDO$(IURPWKHWLPHRIWKHILUVWGRVHDQG6$(VIURPWKHWLPHRI
VLJQLQJRILQIRUPHGFRQVHQWDQGIRUXSWRGD\VDIWHUWKHODVWGRVHRIVWXG\WUHDWPHQWRUXQWLOWKHLQLWLDWLRQ
RIDQRWKHUDQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVW$WWKHHQGRIWUHDWPHQWRQJRLQJ$(VFRQVLGHUHG
UHODWHGWRVWXG\WUHDWPHQWZLOOEHIROORZHGXQWLOWKHHYHQWKDVUHVROYHGWREDVHOLQHRU*UDGHWKHHYHQWLV
DVVHVVHGE\WKHLQYHVWLJDWRUDVVWDEOHWKHSDWLHQWLVORVWWRIROORZXSWKHSDWLHQWZLWKGUDZVFRQVHQWRULWKDV
EHHQGHWHUPLQHGWKDWVWXG\WUHDWPHQWRUSDUWLFLSDWLRQLVQRWWKHFDXVHRIWKH$(
$OOLU$(VVKRXOGEHUHFRUGHGXQWLOXSWRGD\VDIWHUWKHODVWGRVHRIVWXG\WUHDWPHQWUHJDUGOHVVRIZKHWKHU
RUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\$OOGUXJUHODWHG6$(VZLOOEHUHFRUGHGE\WKHLQYHVWLJDWRU
DIWHUWUHDWPHQWGLVFRQWLQXDWLRQ
,QYHVWLJDWRUVDUHLQVWUXFWHGWRUHSRUWDOOHYHQWVLQFOXGLQJ$(VDQGSUHJQDQF\UHODWHG$(V,QDGGLWLRQWKH
VSRQVRUPHGLFDOPRQLWRURUVDIHW\SK\VLFLDQZLOOUHYLHZDQGHYDOXDWHREVHUYHG$(VRQDUHJXODUEDVLV
7KHSRWHQWLDOVDIHW\LVVXHVDQWLFLSDWHGLQWKLVWULDODVZHOODVPHDVXUHVLQWHQGHGWRDYRLGRUPLQLPL]HVXFK
WR[LFLWLHVDUHRXWOLQHGLQWKHIROORZLQJVHFWLRQV

$GYHUVH(YHQWV

'HILQLWLRQVDQG5HSRUWLQJ
$Q$(LVGHILQHGDVDQ\XQIDYRUDEOHDQGXQLQWHQGHGVLJQLQFOXGLQJDQDEQRUPDOODERUDWRU\ILQGLQJ
V\PSWRPRUGLVHDVHQHZRUH[DFHUEDWHGWHPSRUDOO\DVVRFLDWHGZLWKWKHXVHRIDVWXG\GUXJZKHWKHU
FRQVLGHUHGUHODWHGWRVWXG\GUXJRUQRW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
([DPSOHVRI$(VLQFOXGH
x
:RUVHQLQJRIDFKURQLFRULQWHUPLWWHQWSUHH[LVWLQJFRQGLWLRQLQFOXGLQJDQLQFUHDVHLQVHYHULW\
IUHTXHQF\GXUDWLRQDQGRUKDVDQDVVRFLDWLRQZLWKDVLJQLILFDQWO\ZRUVHRXWFRPH
x
1HZFRQGLWLRQVGHWHFWHGRUGLDJQRVHGDIWHUVWXG\GUXJDGPLQLVWUDWLRQHYHQWKRXJKLWPD\KDYHEHHQ
SUHVHQWEHIRUHWKHVWDUWRIWKHVWXG\
x
6LJQVV\PSWRPVRUWKHFOLQLFDOVHTXHODHRIDVXVSHFWHGLQWHUDFWLRQ
x
6LJQVV\PSWRPVRUWKHFOLQLFDOVHTXHODHRIDVXVSHFWHGRYHUGRVHRIHLWKHUVWXG\GUXJRUD
FRQFXUUHQWPHGLFDWLRQRYHUGRVHSHUVHVKRXOGQRWEHUHSRUWHGDVDQ$(RU6$(
:KHQDQ$(RU6$(RFFXUVLWLVWKHUHVSRQVLELOLW\RIWKHLQYHVWLJDWRUWRUHYLHZDOOGRFXPHQWDWLRQHJ
KRVSLWDOSURJUHVVQRWHVODERUDWRU\UHVXOWVDQGGLDJQRVWLFVUHSRUWVUHODWLYHWRWKH$(RU6$(7KH
LQYHVWLJDWRUZLOOWKHQUHFRUGDOOUHOHYDQWLQIRUPDWLRQUHJDUGLQJDQ$(RU6$(LQWKHH&5)+RZHYHUWKHUH
PD\EHLQVWDQFHVZKHQFRSLHVRIPHGLFDOUHFRUGVIRUFHUWDLQFDVHVDUHUHTXHVWHGE\WKHVSRQVRU,QWKLV
LQVWDQFHDOOSDWLHQWLGHQWLILHUVZLOOEHEOLQGHGRQWKHFRSLHVRIWKHPHGLFDOUHFRUGVSULRUWRVXEPLVVLRQWRWKH
VSRQVRU

$VVHVVPHQWRI6HYHULW\
7KHLQYHVWLJDWRUZLOOPDNHDQDVVHVVPHQWRIVHYHULW\IRUHDFK$(DQG6$(UHSRUWHGGXULQJWKHVWXG\$(V
DQG6$(VVKRXOGEHDVVHVVHGDQGJUDGHGEDVHGXSRQWKH1&,&7&$(Y
7R[LFLWLHVWKDWDUHQRWVSHFLILHGLQWKH1&,&7&$(ZLOOEHGHILQHGDVIROORZV
x
*UDGH0LOGDV\PSWRPDWLFRUPLOGV\PSWRPVFOLQLFDORUGLDJQRVWLFREVHUYDWLRQVRQO\
LQWHUYHQWLRQQRWLQGLFDWHG
x
*UDGH0RGHUDWHPLQLPDOORFDORUQRQLQYDVLYHLQWHUYHQWLRQLQGLFDWHGOLPLWLQJDJHDSSURSULDWH
LQVWUXPHQWDODFWLYLWLHVRIGDLO\OLYLQJ$'/
x
*UDGH6HYHUHRUPHGLFDOO\VLJQLILFDQWEXWQRWLPPHGLDWHO\OLIHWKUHDWHQLQJKRVSLWDOL]DWLRQRU
SURORQJDWLRQRIKRVSLWDOL]DWLRQLQGLFDWHGGLVDEOLQJOLPLWLQJVHOIFDUH$'/
x
*UDGH/LIHWKUHDWHQLQJFRQVHTXHQFHVXUJHQWLQWHUYHQWLRQLQGLFDWHG
x
*UDGH'HDWKUHODWHGWR$(
1RWH7KHWHUPV³VHYHUH´DQG³VHULRXV´DUHQRWV\QRQ\PRXV6HYHULW\LVDPHDVXUHRILQWHQVLW\IRUH[DPSOH
JUDGHRIDVSHFLILF$(PLOG>*UDGH@PRGHUDWH>*UDGH@VHYHUH>*UDGH@RUOLIHWKUHDWHQLQJ>*UDGH@
ZKHUHDVVHULRXVQHVVLVFODVVLILHGE\WKHFULWHULDEDVHGRQWKHUHJXODWRU\GHILQLWLRQV6HULRXVQHVVVHUYHVDVWKH
JXLGHIRUGHILQLQJUHJXODWRU\UHSRUWLQJREOLJDWLRQVIURPWKHVSRQVRUWRDSSOLFDEOHUHJXODWRU\DXWKRULWLHVDV
GHVFULEHGLQ6HFWLRQ

$VVHVVPHQWRI&DXVDOLW\
7KHLQYHVWLJDWRULVREOLJDWHGWRDVVHVVWKHUHODWLRQVKLSEHWZHHQWKHVWXG\GUXJDQGWKHRFFXUUHQFHRIHDFK$(
RU6$(XVLQJEHVWFOLQLFDOMXGJPHQW$OWHUQDWLYHFDXVHVVXFKDVQDWXUDOKLVWRU\RIWKHXQGHUO\LQJGLVHDVHV
FRQFRPLWDQWWKHUDS\RWKHUULVNIDFWRUVDQGWKHWHPSRUDOUHODWLRQVKLSRIWKH$(RU6$(WRWKHVWXG\GUXJ
VKRXOGEHFRQVLGHUHGDQGLQYHVWLJDWHG7KHLQYHVWLJDWRUVKRXOGFRQVXOWWKH%*%$,QYHVWLJDWRU¶V
%URFKXUHLQWKHGHWHUPLQDWLRQRIKLVKHUDVVHVVPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7KHUHPD\EHVLWXDWLRQVZKHQDQ6$(KDVRFFXUUHGDQGWKHLQYHVWLJDWRUKDVPLQLPDOLQIRUPDWLRQWRLQFOXGH
LQWKHLQLWLDOUHSRUWWRWKHVSRQVRU+RZHYHULWLVYHU\LPSRUWDQWWKDWWKHLQYHVWLJDWRUDOZD\VPDNHV
DVVHVVPHQWRIFDXVDOLW\IRUHYHU\6$(SULRUWRWUDQVPLVVLRQRIWKH6$(UHSRUWWRWKHVSRQVRUVLQFHWKH
FDXVDOLW\DVVHVVPHQWLVRQHRIWKHFULWHULDXVHGZKHQGHWHUPLQLQJUHJXODWRU\UHSRUWLQJUHTXLUHPHQWV7KH
LQYHVWLJDWRUPD\FKDQJHKLVKHURSLQLRQRIFDXVDOLW\LQOLJKWRIIROORZXSLQIRUPDWLRQDPHQGLQJWKH6$(
UHSRUWDFFRUGLQJO\
7KHFDXVDOLW\RIHDFK$(VKRXOGEHDVVHVVHGDQGFODVVLILHGE\WKHLQYHVWLJDWRUDV³UHODWHG´RU³QRWUHODWHG´
$Q$(LVFRQVLGHUHGUHODWHGLIWKHUHLV³DUHDVRQDEOHSRVVLELOLW\´WKDWWKH$(PD\KDYHEHHQFDXVHGE\WKH
VWXG\GUXJLHWKHUHDUHIDFWVHYLGHQFHRUDUJXPHQWVWRVXJJHVWSRVVLEOHFDXVDWLRQ$QXPEHURIIDFWRUV
VKRXOGEHFRQVLGHUHGLQPDNLQJWKLVDVVHVVPHQWLQFOXGLQJ
x
7HPSRUDOUHODWLRQVKLSRIWKH$(WRWKHDGPLQLVWUDWLRQRIVWXG\WUHDWPHQWVWXG\SURFHGXUH
x
:KHWKHUDQDOWHUQDWLYHHWLRORJ\KDVEHHQLGHQWLILHG
x
0HFKDQLVPRIDFWLRQRIWKHVWXG\GUXJ
x
%LRORJLFDOSODXVLELOLW\
$Q$(VKRXOGEHFRQVLGHUHGµUHODWHG¶WRVWXG\GUXJLIDQ\RIWKHIROORZLQJDUHPHWRWKHUZLVHWKHHYHQW
VKRXOGEHDVVHVVHGDVQRWUHODWHG
x
7KHUHLVFOHDUHYLGHQFHWRVXJJHVWDFDXVDOUHODWLRQVKLSDQGRWKHUSRVVLEOHFRQWULEXWLQJIDFWRUVFDQ
EHUXOHGRXW
x
7KHUHLVHYLGHQFHWRVXJJHVWDFDXVDOUHODWLRQVKLSDQGWKHLQIOXHQFHRIRWKHUIDFWRUVLVXQOLNHO\
x
7KHUHLVVRPHHYLGHQFHWRVXJJHVWDFDXVDOUHODWLRQVKLSHJWKH$(RFFXUUHGZLWKLQDUHDVRQDEOH
WLPHDIWHUDGPLQLVWUDWLRQRIWKHVWXG\GUXJ+RZHYHUWKHLQIOXHQFHRIRWKHUIDFWRUVPD\KDYH
FRQWULEXWHGWRWKH$(HJWKHSDWLHQW¶VFOLQLFDOFRQGLWLRQRURWKHUFRQFRPLWDQW$(V

)ROORZLQJ$GYHUVH(YHQWV
$IWHUWKHLQLWLDO$(RU6$(UHSRUWWKHLQYHVWLJDWRULVUHTXLUHGWRSURDFWLYHO\IROORZHDFKSDWLHQWDQGSURYLGH
IXUWKHULQIRUPDWLRQWRWKHVSRQVRURQWKHSDWLHQW¶VFRQGLWLRQ
$OO$(VDQG6$(VGRFXPHQWHGDWDSUHYLRXVYLVLWFRQWDFWDQGGHVLJQDWHGDVRQJRLQJZLOOEHUHYLHZHGDW
VXEVHTXHQWYLVLWVFRQWDFWV
$OO$(VDQG6$(VZLOOEHIROORZHGXQWLOUHVROXWLRQWKHFRQGLWLRQVWDELOL]HVRULVFRQVLGHUHGFKURQLFWKH$(
RU6$(LVRWKHUZLVHH[SODLQHGWKHSDWLHQWLVORVWWRIROORZXSRUWKHSDWLHQWZLWKGUDZVFRQVHQW7KH
LQYHVWLJDWRUZLOOHQVXUHWKDWIROORZXSLQFOXGHVDQ\VXSSOHPHQWDOLQYHVWLJDWLRQVDVPD\EHLQGLFDWHGWR
HOXFLGDWHWKHQDWXUHDQGRUFDXVDOLW\RIWKH$(RU6$(7KLVPD\LQFOXGHDGGLWLRQDOODERUDWRU\WHVWVRU
LQYHVWLJDWLRQVKLVWRSDWKRORJLFDOH[DPLQDWLRQVUDGLRJUDSKLFLPDJLQJRUFRQVXOWDWLRQZLWKRWKHUKHDOWKFDUH
SURIHVVLRQDOV
7KHVSRQVRUPD\UHTXHVWWKDWWKHLQYHVWLJDWRUSHUIRUPRUDUUDQJHIRUWKHFRQGXFWRIVXSSOHPHQWDO
PHDVXUHPHQWVDQGRUHYDOXDWLRQVWRHOXFLGDWHDVIXOO\DVSRVVLEOHWKHQDWXUHDQGRUFDXVDOLW\RIWKH$(RU
6$(7KHLQYHVWLJDWRULVREOLJDWHGWRDVVLVW,IDSDWLHQWGLHVGXULQJSDUWLFLSDWLRQLQWKHVWXG\RUGXULQJD


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
UHFRJQL]HGIROORZXSSHULRGWKHVSRQVRUZLOOEHSURYLGHGZLWKDFRS\RIDQ\SRVWPRUWHPILQGLQJV
LQFOXGLQJKLVWRSDWKRORJ\
1HZRUXSGDWHGLQIRUPDWLRQVKRXOGEHUHSRUWHGWRWKHVSRQVRUDFFRUGLQJWRWKH6$(LQVWUXFWLRQVSURYLGHGE\
WKHVSRQVRUZLWKLQWKHWLPHIUDPHVRXWOLQHGLQ6HFWLRQ

/DERUDWRU\7HVW$EQRUPDOLWLHV
$EQRUPDOODERUDWRU\ILQGLQJVHJFOLQLFDOFKHPLVWU\KHPDWRORJ\FRDJXODWLRQRUXULQDO\VLVRURWKHU
DEQRUPDODVVHVVPHQWVHJ(&*V;UD\VRUYLWDOVLJQVWKDWDUHMXGJHGE\WKHLQYHVWLJDWRUDVFOLQLFDOO\
VLJQLILFDQWZLOOEHUHFRUGHGDV$(VRU6$(VLIWKH\PHHWWKHGHILQLWLRQRIDQ$(DVGHILQHGLQ6HFWLRQ
RUDQ6$(DV6HFWLRQ&OLQLFDOO\VLJQLILFDQWDEQRUPDOODERUDWRU\ILQGLQJVRURWKHUDEQRUPDO
DVVHVVPHQWVWKDWDUHGHWHFWHGGXULQJWKHVWXG\RUDUHSUHVHQWDWEDVHOLQHDQGVLJQLILFDQWO\ZRUVHQIROORZLQJ
WKHVWDUWRIWKHVWXG\ZLOOEHUHSRUWHGDV$(VRU6$(V+RZHYHUFOLQLFDOO\VLJQLILFDQWDEQRUPDOODERUDWRU\
ILQGLQJVRURWKHUDEQRUPDODVVHVVPHQWVWKDWDUHDVVRFLDWHGZLWKWKHGLVHDVHEHLQJVWXGLHGXQOHVVMXGJHGE\
WKHLQYHVWLJDWRUDVPRUHVHYHUHWKDQH[SHFWHGIRUWKHSDWLHQW¶VFRQGLWLRQRUWKDWDUHSUHVHQWRUGHWHFWHGDWWKH
VWDUWRIWKHVWXG\DQGGRQRWZRUVHQZLOOQRWEHUHSRUWHGDV$(VRU6$(V

'HILQLWLRQRID6HULRXV$GYHUVH(YHQW
$Q6$(LVDQ\XQWRZDUGPHGLFDORFFXUUHQFHWKDWDWDQ\GRVH
x
5HVXOWVLQGHDWK
x
,VOLIHWKUHDWHQLQJ
1RWH7KHWHUP³OLIHWKUHDWHQLQJ´LQWKHGHILQLWLRQRI³VHULRXV´UHIHUVWRDQ$(LQZKLFKWKHSDWLHQW
ZDVDWULVNRIGHDWKDWWKHWLPHRIWKH$(,WGRHVQRWUHIHUWRDQ$(ZKLFKK\SRWKHWLFDOO\PLJKW
KDYHFDXVHGGHDWKLILWZHUHPRUHVHYHUH
x
5HTXLUHVKRVSLWDOL]DWLRQRUSURORQJDWLRQRIH[LVWLQJKRVSLWDOL]DWLRQ
1RWH,QJHQHUDOKRVSLWDOL]DWLRQVLJQLILHVWKDWWKHSDWLHQWZDVDGPLWWHGXVXDOO\LQYROYLQJDWOHDVWDQ
RYHUQLJKWVWD\WRWKHKRVSLWDORUHPHUJHQF\ZDUGIRUREVHUYDWLRQDQGRUWUHDWPHQWWKDWZRXOGQRW
KDYHEHHQDSSURSULDWHLQWKHSK\VLFLDQ¶VRIILFHRURXWSDWLHQWVHWWLQJ
x
5HVXOWVLQGLVDELOLW\LQFDSDFLW\
1RWH7KHWHUPGLVDELOLW\PHDQVDVXEVWDQWLDOGLVUXSWLRQRIDSHUVRQ¶VDELOLW\WRFRQGXFWQRUPDOOLIH
IXQFWLRQV7KLVGHILQLWLRQLVQRWLQWHQGHGWRLQFOXGHH[SHULHQFHVRIUHODWLYHO\PLQRUPHGLFDO
VLJQLILFDQFHVXFKDVXQFRPSOLFDWHGKHDGDFKHQDXVHDYRPLWLQJGLDUUKHDLQIOXHQ]DDQGDFFLGHQWDO
WUDXPDHJVSUDLQHGDQNOHZKLFKPD\LQWHUIHUHRUSUHYHQWHYHU\GD\OLIHIXQFWLRQVEXWGRQRW
FRQVWLWXWHDVXEVWDQWLDOGLVUXSWLRQ
x
,VDFRQJHQLWDODQRPDO\ELUWKGHIHFW
x
,VFRQVLGHUHGDVLJQLILFDQWPHGLFDO$(E\WKHLQYHVWLJDWRUEDVHGRQPHGLFDOMXGJHPHQWHJPD\
MHRSDUGL]HWKHSDWLHQWRUPD\UHTXLUHPHGLFDOVXUJLFDOLQWHUYHQWLRQWRSUHYHQWRQHRIWKHRXWFRPHV
OLVWHGDERYH
7KHIROORZLQJDUH127FRQVLGHUHG6$(V
x
+RVSLWDOL]DWLRQIRUHOHFWLYHWUHDWPHQWRIDSUHH[LVWLQJFRQGLWLRQWKDWGLGQRWZRUVHQIURPEDVHOLQH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
x
+RVSLWDOL]DWLRQIRUVRFLDOFRQYHQLHQFHFRQVLGHUDWLRQV
x
6FKHGXOHGWKHUDS\IRUWKHWDUJHWGLVHDVHRIWKHVWXG\LQFOXGLQJDGPLVVLRQVIRUWUDQVIXVLRQVXSSRUWRU
FRQYHQLHQFH

6XVSHFWHG8QH[SHFWHG6HULRXV$GYHUVH5HDFWLRQ
$VXVSHFWHGXQH[SHFWHGVHULRXVDGYHUVHUHDFWLRQ686$5LVDVHULRXVDGYHUVHUHDFWLRQWKDWLVERWK
XQH[SHFWHGLHQRWSUHVHQWLQWKHSURGXFW¶V5HIHUHQFH6DIHW\,QIRUPDWLRQDQGPHHWVWKHGHILQLWLRQRIDQ
6$(VHULRXVDGYHUVHGUXJUHDFWLRQWKHVSHFLILFLW\RUVHYHULW\RIZKLFKLVQRWFRQVLVWHQWZLWKWKRVHQRWHGLQ
WKH,QYHVWLJDWRU¶V%URFKXUH

7LPLQJ)UHTXHQF\DQG0HWKRGRI&DSWXULQJ$GYHUVH(YHQWVDQG6HULRXV$GYHUVH(YHQWV

$GYHUVH(YHQW5HSRUWLQJ3HULRG
$IWHULQIRUPHGFRQVHQWKDVEHHQVLJQHGEXWSULRUWRWKHDGPLQLVWUDWLRQRIWKHVWXG\GUXJRQO\6$(VVKRXOG
EHUHSRUWHG
$IWHULQLWLDWLRQRIVWXG\GUXJDOO$(VDQG6$(VUHJDUGOHVVRIUHODWLRQVKLSWRVWXG\GUXJZLOOEHUHSRUWHG
XQWLOHLWKHUGD\VDIWHUODVWGRVHRIVWXG\WUHDWPHQWRULQLWLDWLRQRIQHZDQWLFDQFHUWKHUDS\ZKLFKHYHU
RFFXUVILUVW$OOLU$(VVKRXOGEHUHSRUWHGIRUGD\VDIWHUWKHODVWGRVHRI%*%$UHJDUGOHVVRIZKHWKHU
RUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\$IWHUWKLVSHULRGWKHLQYHVWLJDWRUVKRXOGFRQWLQXHWRUHSRUW
DQ\6$(VWKDWDUHEHOLHYHGWREHUHODWHGWR%*%$WUHDWPHQW

5HSRUWLQJ6HULRXV$GYHUVH(YHQWV

3URPSW5HSRUWLQJRI6HULRXV$GYHUVH(YHQWV
$VVRRQDVWKHLQYHVWLJDWRUGHWHUPLQHVWKDWDQ$(PHHWVWKHSURWRFROGHILQLWLRQRIDQ6$(*UDGHRU
ZRUVHWKHHYHQWPXVWEHUHSRUWHGSURPSWO\WRWKHVSRQVRURUGHVLJQHHDVGHVFULEHGLQ7DEOH

7DEOH
7LPHIUDPHVDQG'RFXPHQWDWLRQ0HWKRGVIRU5HSRUWLQJ6HULRXV$GYHUVH(YHQWVWRWKH
6SRQVRURU'HVLJQHH


7LPHIUDPHIRU
0DNLQJ,QLWLDO
5HSRUW
'RFXPHQWDWLRQ
0HWKRG
7LPHIUDPHIRU
0DNLQJ
)ROORZXS
5HSRUW
'RFXPHQWDWLRQ
0HWKRG
$OO6$(V
:LWKLQKRXUVRI
ILUVWNQRZOHGJHRI
WKH$(
6$(5HSRUW
$V
H[SHGLWLRXVO\DV
SRVVLEOH
6$(5HSRUW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$EEUHYLDWLRQV$(DGYHUVHHYHQW6$(VHULRXVDGYHUVHHYHQW

&RPSOHWLRQDQG7UDQVPLVVLRQRIWKH6HULRXV$GYHUVH(YHQW5HSRUW
2QFHDQLQYHVWLJDWRUEHFRPHVDZDUHWKDWDQ6$(KDVRFFXUUHGLQDSDWLHQWKHVKHLVWRUHSRUWWKHLQIRUPDWLRQ
WRWKHVSRQVRUZLWKLQKRXUVDVRXWOLQHGDERYHLQ7DEOH7KH6$(5HSRUWZLOODOZD\VEHFRPSOHWHGDV
WKRURXJKO\DVSRVVLEOHZLWKDOODYDLODEOHGHWDLOVRIWKHHYHQWDQGIRUZDUGHGWRWKHVSRQVRURUGHVLJQHHZLWKLQ
WKHGHVLJQDWHGWLPHIUDPHV
,IWKHLQYHVWLJDWRUGRHVQRWKDYHDOOLQIRUPDWLRQUHJDUGLQJDQ6$(KHVKHLVQRWWRZDLWWRUHFHLYHDGGLWLRQDO
LQIRUPDWLRQEHIRUHQRWLI\LQJWKHVSRQVRURUGHVLJQHHRIWKH6$(DQGFRPSOHWLQJWKHIRUP7KHIRUPZLOOEH
XSGDWHGZKHQDGGLWLRQDOLQIRUPDWLRQLVUHFHLYHG
7KHLQYHVWLJDWRUPXVWDOZD\VSURYLGHDQDVVHVVPHQWRIFDXVDOLW\DWWKHWLPHRIWKHLQLWLDOUHSRUWDVGHVFULEHG
LQ6HFWLRQ
,QFDVHWKHHOHFWURQLFGDWDFDSWXUH('&V\VWHPLVQRQRSHUDWLRQDOIDFVLPLOHWUDQVPLVVLRQRIWKHSDSHU6$(
IRUPZLOOEHXVHGWRWUDQVPLWWKLVLQIRUPDWLRQ$IWHUWKH('&V\VWHPEHFRPHVRSHUDWLRQDODJDLQWKH
LQYHVWLJDWRUPXVWHQWHUWKH6$(LQIRUPDWLRQWKHUH
7KHVSRQVRUZLOOSURYLGHFRQWDFWLQIRUPDWLRQIRU6$(UHFHLSW

5HJXODWRU\5HSRUWLQJ5HTXLUHPHQWVIRU6HULRXV$GYHUVH(YHQWV
7KHLQYHVWLJDWRUZLOOSURPSWO\UHSRUWDOO6$(VWRWKHVSRQVRULQDFFRUGDQFHZLWKWKHSURFHGXUHVGHWDLOHGLQ
6HFWLRQ7KHVSRQVRUKDVDOHJDOUHVSRQVLELOLW\WRQRWLI\DVDSSURSULDWHERWKWKHORFDOUHJXODWRU\
DXWKRULW\DQGRWKHUUHJXODWRU\DJHQFLHVDERXWWKHVDIHW\RIDSURGXFWXQGHUFOLQLFDOLQYHVWLJDWLRQ
7KHLQYHVWLJDWRURUUHVSRQVLEOHSHUVRQDFFRUGLQJWRORFDOUHTXLUHPHQWVZLOOFRPSO\ZLWKWKHDSSOLFDEOHORFDO
UHJXODWRU\UHTXLUHPHQWVUHODWHGWRWKHUHSRUWLQJRI6$(VWRUHJXODWRU\DXWKRULWLHVDQGWKH,5%,(&
7KLVSURWRFROLVEHLQJFRQGXFWHGXQGHUDQ,QYHVWLJDWLRQDO1HZ'UXJ,1'ZLWKWKH86)'$$OO,1'
VDIHW\UHSRUWVLQFOXGLQJ686$5VDVGHILQHGLQ6HFWLRQVXEPLWWHGWRWKH)'$ZLOODOVREHVHQWWRDOO
LQYHVWLJDWRUVFRQGXFWLQJVWXGLHVXQGHUWKLV,1':KHQDVWXG\FHQWHUUHFHLYHVDQLQLWLDORUIROORZXSVDIHW\
UHSRUWRURWKHUVDIHW\LQIRUPDWLRQHJUHYLVHG,QYHVWLJDWRU¶V%URFKXUHIURPWKHVSRQVRUWKHLQYHVWLJDWRURU
GHVLJQDWHGUHVSRQVLEOHSHUVRQLVUHTXLUHGWRSURPSWO\QRWLI\KLVKHU,5%RU,(&7KHLQYHVWLJDWRUVKRXOG
SODFHFRSLHVRI6DIHW\5HSRUWVIURPWKHVSRQVRULQWKH,QYHVWLJDWRU6LWH)LOH

(OLFLWLQJ$GYHUVH(YHQW,QIRUPDWLRQ
7KHLQYHVWLJDWRURUGHVLJQHHZLOODVNDERXW$(VE\DVNLQJWKHIROORZLQJVWDQGDUGTXHVWLRQV
x
+RZDUH\RXIHHOLQJ"
x
+DYH\RXKDGDQ\PHGLFDOSUREOHPVVLQFH\RXUODVWYLVLW"
x
+DYH\RXWDNHQDQ\QHZPHGLFLQHVSUHVFULEHGRYHUWKHFRXQWHUKHUEDORURWKHUVXSSOHPHQWVVLQFH
\RXUODVWYLVLW"


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

5HFRUGLQJ'LVHDVH3URJUHVVLRQ
'LVHDVHSURJUHVVLRQLVH[SHFWHGLQWKLVVWXG\SRSXODWLRQDQGWKHWHUP³GLVHDVHSURJUHVVLRQ´VKRXOGQRWEH
UHSRUWHGDVDQ$(WHUP:KHQGLVHDVHSURJUHVVLRQLVLGHQWLILHGWKH$(WKDWLGHQWLILHVWKHGLVHDVH
SURJUHVVLRQVKRXOGEHUHSRUWHGDVWKH$(WHUP)RULQVWDQFHDSDWLHQWZKRKDVDVHL]XUHWKDWLVGHWHUPLQHG
WREHDVVRFLDWHGZLWKDEUDLQPHWDVWDVLVWKHWHUP³VHL]XUH´VKRXOGEHUHFRUGHGDVWKH$(LQVWHDGRIGLVHDVH
SURJUHVVLRQRUEUDLQPHWDVWDVLV'HDWKVWKDWDUHDVVHVVHGE\WKHLQYHVWLJDWRUDVOLNHO\GXHWRGLVHDVH
SURJUHVVLRQVKRXOGEHUHFRUGHGLQWKHH&5)7KHWHUP³GHDWK´VKRXOGQRWEHUHSRUWHGDVDQ$(RU6$(
WHUPEXWUDWKHUDVDQRXWFRPHRIDQHYHQW
,IWKHUHLVDQ\XQFHUWDLQW\UHJDUGLQJZKHWKHUD6$(LVGXHWRGLVHDVHSURJUHVVLRQLWVKRXOGEHUHSRUWHGDVDQ
$(

5HFRUGLQJ'HDWKV
:KHQUHFRUGLQJDGHDWKDVDQ6$(WKH$(WKDWFDXVHGRUFRQWULEXWHGWRIDWDORXWFRPHVKRXOGEHUHFRUGHGDV
WKHVLQJOHPHGLFDOFRQFHSW,IWKHFDXVHRIGHDWKLVXQNQRZQDQGFDQQRWEHDVFHUWDLQHGDWWKHWLPHRI
UHSRUWLQJUHFRUG³XQH[SODLQHGGHDWK´

5HFRUGLQJ3UHJQDQFLHV
,IDIHPDOHSDWLHQWRUWKHSDUWQHURIDPDOHSDWLHQWEHFRPHVSUHJQDQWZKLOHUHFHLYLQJLQYHVWLJDWLRQDOWKHUDS\
RUZLWKLQGD\VDIWHUWKHODVWGRVHRI%*%$DSUHJQDQF\UHSRUWIRUPLVUHTXLUHGWREHFRPSOHWHGDQG
H[SHGLWLRXVO\VXEPLWWHGWRWKHVSRQVRUWRIDFLOLWDWHRXWFRPHIROORZXS,QIRUPDWLRQRQWKHVWDWXVRIWKH
PRWKHUDQGFKLOGZLOOEHIRUZDUGHGWRWKHVSRQVRU*HQHUDOO\IROORZXSZLOOEHQRORQJHUWKDQWRZHHNV
IROORZLQJWKHHVWLPDWHGGHOLYHU\GDWH$Q\SUHPDWXUHWHUPLQDWLRQRIWKHSUHJQDQF\ZLOOEHUHSRUWHG
:KLOHSUHJQDQF\LWVHOILVQRWFRQVLGHUHGWREHDQ$(RU6$(DQ\SUHJQDQF\FRPSOLFDWLRQRUHOHFWLYH
WHUPLQDWLRQRIDSUHJQDQF\IRUPHGLFDOUHDVRQVZLOOEHUHFRUGHGDVDQ$(RU6$(
$QDERUWLRQZKHWKHUDFFLGHQWDOWKHUDSHXWLFRUVSRQWDQHRXVVKRXOGEHDOZD\VUHSRUWHGDVDQ6$(
6LPLODUO\DQ\FRQJHQLWDODQRPDO\ELUWKGHIHFWLQDFKLOGERUQWRDSDWLHQWH[SRVHGWRWKHVWXG\GUXJVKRXOG
EHUHFRUGHGDQGUHSRUWHGDVDQ6$(

5HFRUGLQJ3RVW6WXG\$GYHUVH(YHQWV
$SRVWVWXG\$(RU6$(LVGHILQHGDVDQ\$(WKDWRFFXUVRXWVLGHRIWKH$(6$(UHSRUWLQJSHULRGWKDWLV
GHILQHGLQ6HFWLRQ
,QYHVWLJDWRUVDUHQRWREOLJDWHGWRDFWLYHO\VHHN$(VRU6$(VLQIRUPHUSDWLHQWV+RZHYHULIWKHLQYHVWLJDWRU
OHDUQVRIDQ\6$(LQFOXGLQJDGHDWKDWDQ\WLPHDIWHUDSDWLHQWKDVEHHQGLVFKDUJHGIURPWKHVWXG\DQG
KHVKHFRQVLGHUVWKH6$(UHODWHGWRWKHVWXG\GUXJWKHLQYHVWLJDWRUZLOOQRWLI\WKHVSRQVRU

([SHGLWHG5HSRUWLQJWR+HDOWK$XWKRULWLHV,QYHVWLJDWRUV,QVWLWXWLRQDO5HYLHZ%RDUGVDQG
,QGHSHQGHQW(WKLFV&RPPLWWHHV
7KHVSRQVRUZLOOSURPSWO\DVVHVVDOO6$(VDJDLQVWFXPXODWLYHVWXG\GUXJH[SHULHQFHWRLGHQWLI\DQG
H[SHGLWLRXVO\FRPPXQLFDWHQHZVDIHW\ILQGLQJVWRUHJXODWRU\DXWKRULWLHVLQYHVWLJDWRUV,5%VDQG,(&VEDVHG
RQDSSOLFDEOHOHJLVODWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7RGHWHUPLQHWKHUHSRUWLQJUHTXLUHPHQWVIRULQGLYLGXDO6$(VWKHVSRQVRUZLOODVVHVVWKHH[SHFWHGQHVVRIWKH
6$(VXVLQJWKHIROORZLQJUHIHUHQFHGRFXPHQW
x
%*%$,QYHVWLJDWRU¶V%URFKXUH

0DQDJHPHQWRI$GYHUVH(YHQWVRI6SHFLDO,QWHUHVW
$VDURXWLQHSUHFDXWLRQDIWHULQIXVLRQRI%*%$RQ'D\RI&\FOHDQG&\FOHSDWLHQWVPXVWEH
PRQLWRUHGIRUDWOHDVWKRXUDIWHUZDUGVLQDQDUHDZLWKUHVXVFLWDWLRQHTXLSPHQWDQGHPHUJHQF\DJHQWV
7KHPDQDJHPHQWIRULQIXVLRQUHODWHGUHDFWLRQVVHYHUHK\SHUVHQVLWLYLW\UHDFWLRQVDQGLU$(VDFFRUGLQJWRWKH
1&,&7&$(FULWHULDDUHRXWOLQHGEHORZ

$EQRUPDO,QIXVLRQ5HODWHG5HDFWLRQV
7KHV\PSWRPVRILQIXVLRQUHODWHGUHDFWLRQVLQFOXGHIHYHUFKLOOVULJRUQDXVHDSUXULWXVDQJLRHGHPD
K\SRWHQVLRQKHDGDFKHEURQFKRVSDVPXUWLFDULDUDVKYRPLWLQJP\DOJLDGL]]LQHVVRUK\SHUWHQVLRQ6HYHUH
UHDFWLRQVPD\LQFOXGHDFXWHUHVSLUDWRU\GLVWUHVVV\QGURPHP\RFDUGLDOLQIDUFWLRQYHQWULFXODUILEULOODWLRQDQG
FDUGLRJHQLFVKRFN3DWLHQWVVKRXOGEHFORVHO\PRQLWRUHGIRUVXFKUHDFWLRQV,PPHGLDWHDFFHVVWRDQ,QWHQVLYH
&DUH8QLW,&8RUHTXLYDOHQWHQYLURQPHQWDQGDSSURSULDWHPHGLFDOWKHUDS\LQFOXGLQJHSLQHSKULQH
FRUWLFRVWHURLGV,9DQWLKLVWDPLQHVEURQFKRGLODWRUVDQGR[\JHQPXVWEHDYDLODEOHWRWUHDWLQIXVLRQUHODWHG
UHDFWLRQV
7UHDWPHQWPRGLILFDWLRQJXLGHOLQHVIRUVXVSHFWHGLQIXVLRQUHODWHGUHDFWLRQVGXHWR%*%$DUHSURYLGHGLQ
$SSHQGL[

6HYHUH+\SHUVHQVLWLYLW\5HDFWLRQVDQG)OX/LNH6\PSWRPV
,IDK\SHUVHQVLWLYLW\UHDFWLRQRFFXUVWKHSDWLHQWPXVWEHWUHDWHGDFFRUGLQJWRWKHEHVWDYDLODEOHPHGLFDO
SUDFWLFHDVGHVFULEHGLQWKHFRPSOHWHJXLGHOLQHIRUHPHUJHQF\WUHDWPHQWRIDQDSK\ODFWLFUHDFWLRQVDFFRUGLQJ
WRWKH:RUNLQJ*URXSRIWKH5HVXVFLWDWLRQ&RXQFLO8.6RDUHWDO3DWLHQWVVKRXOGEHLQVWUXFWHGWR
UHSRUWDQ\GHOD\HGUHDFWLRQVWRWKHLQYHVWLJDWRULPPHGLDWHO\
,QWKHHYHQWRIDV\VWHPLFDQDSK\ODFWLFDQDSK\ODFWRLGUHDFWLRQW\SLFDOO\PDQLIHVWHGZLWKLQPLQXWHV
IROORZLQJDGPLQLVWUDWLRQRIWKHGUXJDQWLJHQDQGFKDUDFWHUL]HGE\UHVSLUDWRU\GLVWUHVVODU\QJHDOHGHPD
DQGRULQWHQVHEURQFKRVSDVPDQGRIWHQIROORZHGE\YDVFXODUFROODSVHRUVKRFNZLWKRXWDQWHFHGHQW
UHVSLUDWRU\GLIILFXOW\FXWDQHRXVPDQLIHVWDWLRQVVXFKDVSUXULWXVDQGXUWLFDULDZLWKZLWKRXWHGHPDDQG
JDVWURLQWHVWLQDOPDQLIHVWDWLRQVVXFKDVQDXVHDYRPLWLQJFUDPS\DEGRPLQDOSDLQDQGGLDUUKHDWKHLQIXVLRQ
PXVWEHLPPHGLDWHO\VWRSSHGDQGWKHSDWLHQWGLVFRQWLQXHGIURPWKHVWXG\
7KHSDWLHQWVZLOOEHDGPLQLVWHUHGHSLQHSKULQHLQMHFWLRQDQGGH[DPHWKDVRQHLQIXVLRQLIK\SHUVHQVLWLYLW\
UHDFWLRQLVREVHUYHGDQGWKHQWKHSDWLHQWVKRXOGEHSODFHGRQPRQLWRULPPHGLDWHO\DQG,&8VKRXOGEHDOHUWHG
IRUSRVVLEOHWUDQVIHULIQHHGHG
)RUSURSK\OD[LVRIIOXOLNHV\PSWRPVDGRVHRIPJLQGRPHWKDFLQRUDFRPSDUDEOHGRVHRIQRQVWHURLGDO
DQWLLQIODPPDWRU\GUXJVLHPJLEXSURIHQPJQDSUR[HQVRGLXPPD\EHDGPLQLVWHUHGKEHIRUH
DQGKDIWHUWKHVWDUWRIHDFKGRVHRIVWXG\GUXJVVLQIXVLRQ$OWHUQDWLYHWUHDWPHQWVIRUIHYHULH
SDUDFHWDPROPD\EHJLYHQWRSDWLHQWVDWWKHGLVFUHWLRQRIWKHLQYHVWLJDWRU


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

,PPXQH5HODWHG$GYHUVH(YHQWV
,PPXQHUHODWHG$(VDUHRIVSHFLDOLQWHUHVWLQWKLVVWXG\,IWKHHYHQWVOLVWHGEHORZRUVLPLODUHYHQWVRFFXU
WKH,QYHVWLJDWRUVKRXOGH[FOXGHDOWHUQDWLYHH[SODQDWLRQVHJFRPELQDWLRQGUXJVLQIHFWLRXVGLVHDVH
PHWDEROLFWR[LQGLVHDVHSURJUHVVLRQRURWKHUQHRSODVWLFFDXVHVZLWKDSSURSULDWHGLDJQRVWLFWHVWVZKLFKPD\
LQFOXGHEXWLVQRWOLPLWHGWRVHURORJLFLPPXQRORJLFDQGKLVWRORJLFELRSV\GDWD,IDOWHUQDWLYHFDXVHVKDYH
EHHQUXOHGRXWWKH$(UHTXLUHGWKHXVHRIV\VWHPLFVWHURLGVRWKHULPPXQRVXSSUHVVDQWVRUHQGRFULQHWKHUDS\
DQGLVFRQVLVWHQWZLWKDQLPPXQHPHGLDWHGPHFKDQLVPRIDFWLRQWKHLU$(LQGLFDWRULQWKHH&5)$(SDJH
VKRXOGEHFKHFNHG
'LDJQRVWLFHYDOXDWLRQDQGPDQDJHPHQWRILU$(VLVEDVHGRQUHFHQW(XURSHDQ6RFLHW\IRU0HGLFDO2QFRORJ\
(602DQG$PHULFDQ6RFLHW\RI&OLQLFDO2QFRORJ\$6&2JXLGHOLQHV+DDQHQHWDO%UDKPHUHWDO
DQGFRPPRQLPPXQHUHODWHGWR[LFLWLHVDUHGHWDLOHGLQ$SSHQGL[
$OLVWRISRWHQWLDOLU$(VDSSHDUVLQ7DEOH$OOFRQGLWLRQVVLPLODUWRWKRVHOLVWHGVKRXOGEHHYDOXDWHGWR
GHWHUPLQHZKHWKHUWKH\DUHLPPXQHUHODWHG6XJJHVWHGGLDJQRVWLFWHVWLQJLVSUHVHQWHGLQPRUHGHWDLOLQ
$SSHQGL[IRUVHOHFW$(V)RUDQ\$(VQRWLQFOXGHGLQ$SSHQGL[SOHDVHUHIHUWRWKH(602DQG$6&2
JXLGHOLQHV+DDQHQHWDO%UDKPHUHWDOIRUIXUWKHUJXLGDQFHRQPDQDJHPHQWRUWUHDWPHQW
7DEOH
,PPXQH5HODWHG$GYHUVH(YHQWV$VVRFLDWHGZLWK$QWL3''UXJV

%RG\6\VWHP$IIHFWHG
(YHQWV
6NLQPLOGFRPPRQ
SUXULWXVRUPDFXORSDSXODUUDVKYLWLOLJR
6NLQPRGHUDWH
IROOLFXODURUXUWLFDULDOGHUPDWLWLVHU\WKHPDWRXVOLFKHQRLGUDVK6ZHHW¶V
V\QGURPH
6NLQVHYHUHUDUH
IXOOWKLFNQHVVQHFURO\VLV6WHYHQV-RKQVRQV\QGURPH
*DVWURLQWHVWLQDO
FROLWLVLQFOXGHVGLDUUKHDZLWKDEGRPLQDOSDLQRUHQGRVFRSLFUDGLRJUDSKLF
HYLGHQFHRILQIODPPDWLRQSDQFUHDWLWLVKHSDWLWLVDPLQRWUDQVIHUDVH
$/7$67HOHYDWLRQERZHOSHUIRUDWLRQ
(QGRFULQH
WK\URLGLWLVK\SRWK\URLGLVPK\SHUWK\URLGLVPK\SRSK\VLWLVZLWKIHDWXUHV
RIK\SRSLWXLWDULVPHJIDWLJXHZHDNQHVVZHLJKWJDLQLQVXOLQGHSHQGHQW
GLDEHWHVPHOOLWXVGLDEHWLFNHWRDFLGRVLVDGUHQDOLQVXIILFLHQF\
5HVSLUDWRU\
SQHXPRQLWLVGLIIXVHDOYHROLWLV
(\H
HSLVFOHULWLVFRQMXQFWLYLWLVLULWLVXYHLWLV
1HXURPXVFXODU
DUWKULWLVDUWKUDOJLDP\DOJLDQHXURSDWK\*XLOODLQ%DUUHV\QGURPH
DVHSWLFPHQLQJLWLVP\DVWKHQLFV\QGURPHP\DVWKHQLDJUDYLV
PHQLQJRHQFHSKDOLWLVP\RVLWLV
%ORRG
DQHPLDOHXNRSHQLDWKURPERF\WRSHQLD
5HQDO
LQWHUVWLWLDOQHSKULWLVJORPHUXORQHSKULWLVDFXWHUHQDOIDLOXUH
&DUGLDF
SHULFDUGLWLVP\RFDUGLWLVKHDUWIDLOXUH
$EEUHYLDWLRQV$/7DODQLQHDPLQRWUDQVIHUDVH$67DVSDUWDWHDPLQRWUDQVIHUDVH
3'SURJUDPPHGFHOOGHDWKSURWHLQ



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

+HSDWLFDQG5HQDO)XQFWLRQ$EQRUPDOLWLHV
3DWLHQWVZLWKDGYDQFHG+&&JHQHUDOO\KDYHXQGHUO\LQJFLUUKRVLVZLWKGHFUHDVHGKHSDWLFIXQFWLRQ6SHFLDO
DWWHQWLRQLVQHHGHGEHFDXVHWKH\PD\DOVRKDYHDFRQFRPLWDQWFKURQLFYLUDOLQIHFWLRQ7KHUHIRUHZKHQD
KHSDWLFHYHQWVXFKDVOLYHUIXQFWLRQODERUDWRU\DEQRUPDOLWLHVLVREVHUYHGWKH,QYHVWLJDWRUPXVWHYDOXDWHIRU
UHDFWLYDWLRQRIYLUDOKHSDWLWLVFRQVLGHURWKHUGUXJUHODWHGWR[LFLW\DQGH[FOXGH3'LQYROYLQJWKHOLYHU)RU
GLDJQRVLVDQGPDQDJHPHQWRISDWLHQWVZLWK$67RU$/7YDOXHV*UDGHDWEDVHOLQHSOHDVHVHH
6HFWLRQDQGUHIHUWR$SSHQGL[
,QSDWLHQWVZLWK*UDGH$67$/7DEQRUPDOLWLHVDWEDVHOLQHWKHUDSHXWLFLQWHUYHQWLRQVZLWKDVWHURLG
WUHDWPHQWPD\EHUHTXLUHGZLWKULVLQJ$67DQG$/7ODERUDWRU\DEQRUPDOLWLHV7KHIROORZLQJDOJRULWKPLV
SURSRVHGIRUWKHXVHRIVWHURLGWUHDWPHQW
x
,I$67RU$/7LQFUHDVHVE\UHODWLYHWREDVHOLQHDQGODVWVIRUDWOHDVWZHHNVWDUWRUDO
SUHGQLVRORQHPJNJGD\DQGWDSHURYHUDWOHDVWZHHNVUHHVFDODWHGRVHLIOLYHUIXQFWLRQWHVWV
/)7VZRUVHQGHSHQGLQJRQFOLQLFDOMXGJHPHQWPDQDJHDVSHU$SSHQGL[6WXG\WUHDWPHQW
VKRXOGEHKHOGXQWLO$67$/7LQFUHDVHUHVROYHGLPSURYHGWREDVHOLQHDQGSUHGQLVRORQHWDSHUHGWR
PJ
x
,IDQ\$/7RU$67LQFUHDVHVPHHWV*UDGHFULWHULDLQLWLDWHVWHURLGWKHUDS\SURPSWO\SHU
$SSHQGL[6WXG\WUHDWPHQWZLOOEHKHOGXQWLO$67RU$/7LPSURYHVWRYDOXH*UDGH6WXG\
GUXJPD\EHUHLQWURGXFHGRQO\DIWHUGLVFXVVLRQZLWKWKH6SRQVRU
x
,IDQ\$/7RU$67LQFUHDVHVPHHWV*UDGHFULWHULDLQLWLDWHVWHURLGWKHUDS\SURPSWO\SHU
$SSHQGL[6WXG\WUHDWPHQWZLOOEHGLVFRQWLQXHGSHUPDQHQWO\
5HQDO)XQFWLRQ$EQRUPDOLWLHV
3DWLHQWVZLWKPRGHUDWHUHQDOG\VIXQFWLRQHVWLPDWHGJORPHUXODUILOWUDWLRQUDWH!P/PLQPDQG
P/PLQPE\&KURQLF.LGQH\'LVHDVH(SLGHPLRORJ\&ROODERUDWLRQHTXDWLRQPD\EHHQUROOHGLQWR
WKHVWXG\$SSHQGL[7KHIROORZLQJDOJRULWKPLVSURSRVHGIRUWKHXVHRIVWHURLGWUHDWPHQWLQWKH
PDQDJHPHQWRILPPXQHUHODWHGDGYHUVHHYHQWV
x
,IWKHVHUXPFUHDWLQLQHLVQRUPDODWEDVHOLQHSOHDVHVHH6HFWLRQDQGUHIHUWR$SSHQGL[IRU
GLDJQRVLVDQGPDQDJHPHQWRISDWLHQWVZLWKDEQRUPDOUHQDOODERUDWRU\YDOXHV
x
,IWKHVHUXPFUHDWLQLQHLV*UDGHDWEDVHOLQHDQGLQFUHDVHLQVHUXPFUHDWLQLQHPHHWVFULWHULDIRU
VHUXPFUHDWLQLQHLQFUHDVH*UDGHDIWHUVWDUWLQJWUHDWPHQWZLWK%*%$UHIHUWR$SSHQGL[IRU
GLDJQRVLVDQGPDQDJHPHQWRISDWLHQWVZLWKDEQRUPDOUHQDOODERUDWRU\YDOXHV&KHFNWKHH*)5XVLQJ
$SSHQGL[DQGWKHH*)5FDOFXODWRUOLQN,QWKHVHWWLQJRID*UDGHVHUXPFUHDWLQLQHLQFUHDVHRQO\
VWXG\WUHDWPHQWFDQFRQWLQXHXQOHVVWKHVHUXPFUHDWLQLQHLQFUHDVHVE\DWOHDVWIURPWKHEDVHOLQH
YDOXH25WKHH*)5IDOOVEHORZP/PLQ
x
,IWKHVHUXPFUHDWLQLQHLV*UDGHDWEDVHOLQHDQGLQFUHDVHLQVHUXPFUHDWLQLQHPHHWVFULWHULDIRU
VHUXPFUHDWLQLQHLQFUHDVH*UDGHDIWHUVWDUWLQJWUHDWPHQWZLWK%*%$UHIHUWR$SSHQGL[IRU
GLDJQRVLVDQGPDQDJHPHQWRISDWLHQWVZLWKDEQRUPDOUHQDOODERUDWRU\YDOXHV,QWKHVHWWLQJRID
*UDGHVHUXPFUHDWLQLQHLQFUHDVHRQO\VWXG\WUHDWPHQWZLOOEHKHOGXQWLOVHUXPFUHDWLQLQHLPSURYHV
WREDVHOLQHDQGWUHDWPHQWPD\UHVXPHRQO\DIWHUGLVFXVVLRQZLWK6SRQVRU0HGLFDO0RQLWRU


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

67$7,67,&$/0(7+2'6$1'6$03/(6,=('(7(50,1$7,21

6WDWLVWLFDO$QDO\VLV
7KHVWDWLVWLFDODQDO\VHVZLOOEHSHUIRUPHGE\WKHVSRQVRURUGHVLJQHHDIWHUWKHVWXG\LVFRPSOHWHGDQGWKH
GDWDEDVHLVORFNHGDQGUHOHDVHG'DWDZLOOEHOLVWHGDQGVXPPDUL]HGXVLQJ6$6YRUKLJKHU6$6
,QVWLWXWH,QF&DU\1RUWK&DUROLQDSHUVSRQVRUDJUHHGUHSRUWLQJVWDQGDUGVZKHUHDSSOLFDEOH'HWDLOVRIWKH
VWDWLVWLFDODQDO\VHVZLOOEHLQFOXGHGLQDVHSDUDWH6WDWLVWLFDO$QDO\VLV3ODQ
7KHIROORZLQJGHVFULSWLYHVWDWLVWLFVZLOOEHXVHGWRVXPPDUL]HWKHWULDOGDWDRQWKHEDVLVRIWKHLUQDWXUHXQOHVV
RWKHUZLVHVSHFLILHG
x
&RQWLQXRXVYDULDEOHVQXPEHURIQRQPLVVLQJREVHUYDWLRQVPHDQVWDQGDUGGHYLDWLRQPHGLDQ
PLQLPXPDQGPD[LPXP
x
&DWHJRULFDOYDULDEOHVIUHTXHQFLHVDQGSHUFHQWDJHV
x
7LPHWRHYHQWYDULDEOHVQXPEHURIQRQPLVVLQJREVHUYDWLRQV1PHGLDQPLQLPXPDQGPD[LPXP
.DSODQ0HLHU.0HYHQWUDWHVPD\DOVREHSURYLGHGLIDSSOLFDEOHIRUVSHFLILFWLPHWRHYHQW
YDULDEOHV

$QDO\VLV6HWV
7KH6DIHW\3RSXODWLRQ6$)LQFOXGHVDOOSDWLHQWVZKRKDYHUHFHLYHGDQ\GRVHRI%*%$,WZLOOEHWKH
SULPDU\SRSXODWLRQIRUHIILFDF\DQGVDIHW\DQDO\VLV
7KH(IILFDF\(YDOXDEOH3RSXODWLRQ())LQFOXGHVDOOSDWLHQWVLQWKH6$)ZLWKPHDVXUDEOHGLVHDVHDWEDVHOLQH
SHU5(&,67ZKRKDGDWOHDVWRQHHYDOXDEOHSRVWEDVHOLQHWXPRUDVVHVVPHQWXQOHVVGLVFRQWLQXHGGXHWR
FOLQLFDOGLVHDVHSURJUHVVLRQRUGHDWKZLWKLQZHHNVRIWKHILUVWGRVHGDWH
7KH3.SRSXODWLRQ3.LQFOXGHVSDWLHQWVZKRFRQWULEXWHGDWOHDVWSRVWGRVHTXDQWLILDEOH3.VDPSOH

3DWLHQW'LVSRVLWLRQ
7KHQXPEHURISDWLHQWVHQUROOHGWUHDWHGGLVFRQWLQXHGIURPVWXG\GUXJDQGRUVWXG\DQGWKRVHZLWKPDMRU
SURWRFROGHYLDWLRQVZLOOEHFRXQWHG7KHSULPDU\UHDVRQIRUVWXG\GUXJDQGRUVWXG\GLVFRQWLQXHGZLOOEH
VXPPDUL]HGDFFRUGLQJWRWKHFDWHJRULHVLQWKHH&5)7KHHQGRIVWXG\VWDWXVDOLYHGHDGZLWKGUHZFRQVHQW
RUORVWWRIROORZXSDWWKHGDWDFXWRIIGDWHZLOOEHVXPPDUL]HGXVLQJWKHGDWDIURPWKHH&5)
0DMRUSURWRFROGHYLDWLRQVZLOOEHVXPPDUL]HGDQGOLVWHGE\HDFKFDWHJRU\

'HPRJUDSKLFDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV
'HPRJUDSKLFDQGRWKHUEDVHOLQHFKDUDFWHULVWLFVZLOOEHVXPPDUL]HGXVLQJGHVFULSWLYHVWDWLVWLFV&RQWLQXRXV
YDULDEOHVLQFOXGHDJHZHLJKWYLWDOVLJQVWLPHVLQFHLQLWLDOFDQFHUGLDJQRVLVDQGWLPHVLQFH
DGYDQFHGPHWDVWDWLFGLVHDVHGLDJQRVLVFDWHJRULFDOYDULDEOHVLQFOXGHJHQGHU(&2*JHRJUDSKLFDOUHJLRQ
FRXQWU\UDFH&KLOG3XJKFODVVLILFDWLRQKHSDWLWLVYLUXV%&/&VWDJLQJPHWDVWDWLFVLWHDQGPDFURYDVFXODU
LQYDVLRQDQGRUH[WUDKHSDWLFVSUHDGVWDWXV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

3ULRUDQG&RQFRPLWDQW0HGLFDWLRQV
&RQFRPLWDQWPHGLFDWLRQVZLOOEHFRGHGXVLQJWKH:+2'UXJ'LFWLRQDU\GUXJFRGHV&RQFRPLWDQW
PHGLFDWLRQVZLOOEHIXUWKHUFRGHGWRWKHDSSURSULDWH$QDWRPLFDO7KHUDSHXWLF&KHPLFDOFRGHLQGLFDWLQJ
WKHUDSHXWLFFODVVLILFDWLRQ3ULRUDQGFRQFRPLWDQWPHGLFDWLRQVZLOOEHVXPPDUL]HGDQGOLVWHGE\GUXJDQG
GUXJFODVVLQWKH&OLQLFDO6WXG\5HSRUW&65IRUWKLVSURWRFRO3ULRUPHGLFDWLRQVZLOOEHGHILQHGDV
PHGLFDWLRQVWDNHQZLWKLQGD\VRIWKHILUVWGRVHRIVWXG\GUXJWKDWZHUHVWRSSHGSULRUWRVWXG\GUXJ
DGPLQLVWUDWLRQ&RQFRPLWDQWPHGLFDWLRQVZLOOEHGHILQHGDVPHGLFDWLRQVWKDWVWDUWHGEHIRUHWKHILUVWGRVH
RIVWXG\GUXJDQGZHUHFRQWLQXLQJDWWKHWLPHRIWKHILUVWGRVHRIVWXG\GUXJRUVWDUWHGRQRUDIWHUWKHGDWH
RIWKHILUVWGRVHRIVWXG\GUXJXSWRGD\VDIWHUWKHSDWLHQW¶VODVWGRVHDVRI6DIHW\)ROORZXSYLVLW$
OLVWLQJRISULRUDQGFRQFRPLWDQWPHGLFDWLRQVZLOOEHLQFOXGHGLQWKH&65IRUWKLVSURWRFRO

(IILFDF\$QDO\VHV

3ULPDU\(IILFDF\$QDO\VHV
+\SRWKHVLVWHVWLQJRI255SHU,5&LQWKH6$)ZLOOEHWKHSULPDU\HIILFDF\DQDO\VLV(IILFDF\HQGSRLQWV
EDVHGRQLQYHVWLJDWRUDVVHVVHGWXPRUUHVSRQVHZLOOEHSUHVHQWHGDVWKHVHFRQGDU\HIILFDF\DQDO\VHV
7KH255RI%*%$SHU,5&LVDVVXPHGDVLQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&
7KHKLVWRULFDOUDWHLQDVLPLODUSRSXODWLRQLVHVWLPDWHGDV7KHQXOODQGDOWHUQDWLYHK\SRWKHVHVDUHVHWDV
IROORZV




+255 




+D255
$ELQRPLDOH[DFWWHVWZLOOEHSHUIRUPHGIRUK\SRWKHVLVWHVWLQJ,IWKHREWDLQHGRQHVLGHGSYDOXHLV
LWZLOOEHFRQFOXGHGWKDW%*%$PRQRWKHUDS\VWDWLVWLFDOO\VLJQLILFDQWO\LQFUHDVHV255FRPSDUHGZLWK
KLVWRULFDOFRQWURO7KHUHIRUHWKHVXSHULRULW\RI%*%$PRQRWKHUDS\ZLOOEHGHPRQVWUDWHG$WZRVLGHG
ELQRPLDOH[DFW&,RI255ZLOOEHFRQVWUXFWHGWRDVVHVVWKHSUHFLVLRQRIWKHUDWHHVWLPDWH
7KHSULPDU\HIILFDF\DQDO\VLVZLOOEHFRQGXFWHGZKHQPDWXUHUHVSRQVHUDWHGDWDKDYHEHHQREVHUYHG
DQWLFLSDWHGDVQRPRUHWKDQPRQWKVDIWHUWKHODVWVXEMHFWUHFHLYHGWKHILUVWGRVHRIVWXG\GUXJ,QFDVHRI
VLJQLILFDQWHQUROOPHQWGHOD\LQWKHVHFRQGOLQHRUWKLUGOLQHRUPRUHSRSXODWLRQDVXESRSXODWLRQIRFXVHG
DQDO\VLVPD\EHSHUIRUPHGRQFHDJLYHQSRSXODWLRQKDVUHDFKHGLWVHQUROOPHQWWDUJHW

6HFRQGDU\(IILFDF\$QDO\VHV
2WKHUWXPRUDVVHVVPHQWRXWFRPHVSHU,5&RULQYHVWLJDWRUZLOOEHVXPPDUL]HGDVZHOODV26DVVHFRQGDU\
HIILFDF\DQDO\VLV
7KH.0PHWKRGZLOOEHXVHGWRHVWLPDWHWKHNH\VHFRQGDU\HQGSRLQW'25DQGFRUUHVSRQGLQJTXDQWLOHV
LQFOXGLQJWKHPHGLDQLIHVWLPDEOHLQWKHUHVSRQGHUV$WZRVLGHG&,VRIPHGLDQLIHVWLPDEOHZLOOEH
FRQVWUXFWHGZLWKDJHQHUDOL]HG%URRNPH\HUDQG&URZOH\PHWKRG%URRNPH\HUDQG&URZOH\
7KH'25FHQVRULQJUXOHZLOOIROORZWKH)'$*XLGDQFHIRU,QGXVWU\&OLQLFDO7ULDO(QGSRLQWVIRUWKH
$SSURYDORI&DQFHU'UXJVDQG%LRORJLFV)'$&HQVRULQJUXOHVIROORZLQJWKH(XURSHDQ0HGLFLQHV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$JHQF\*XLGHOLQHRQWKH(YDOXDWLRQRI$QWLFDQFHU0HGLFLQDO3URGXFWVLQ0DQ(0$ZLOOEHXVHGDV
DVHQVLWLYLW\DQDO\VLV
2WKHUWLPHWRHYHQWYDULDEOHV3)6DQG26ZLOOEHVLPLODUO\DQDO\]HGLQWKH6$)XVLQJWKH.0PHWKRGDV
GHVFULEHGDERYH7KH.0HVWLPDWHVRI3)6DQG26ZLOOEHSORWWHGRYHUWLPH7KH3)6WLPHSRLQWHVWLPDWHV
GHILQHGDVWKHSHUFHQWDJHVRISDWLHQWVLQWKHDQDO\VLVVHWZKRUHPDLQDOLYHDQGSURJUHVVLRQIUHHDWWKH
VSHFLILHGWLPHSRLQWVLHRUPRQWKZLOOEHHVWLPDWHGXVLQJWKH.0PHWKRGDORQJZLWKWKHFRUUHVSRQGLQJ
&,FRQVWUXFWHGXVLQJ*UHHQZRRG¶VIRUPXOD*UHHQZRRG7KH26WLPHSRLQWHVWLPDWHVZLOOEH
FDOFXODWHGVLPLODUO\
%LQRPLDOH[DFW&,RI'&5DQG&%5ZLOOEHFDOFXODWHGLQWKH6$)

6DIHW\$QDO\VHV
$OOSDWLHQWVZKRZHUHH[SRVHGWR%*%$ZLOOEHHYDOXDWHGIRUVDIHW\

([WHQWRI([SRVXUH
([WHQWRIH[SRVXUHWR%*%$ZLOOEHVXPPDUL]HGGHVFULSWLYHO\DVWKHQXPEHURIGRVHVUHFHLYHGQXPEHU
DQGSHUFHQWDJHRISDWLHQWVGXUDWLRQRIH[SRVXUHGD\VFXPXODWLYHWRWDOGRVHUHFHLYHGSHUSDWLHQWPJ
GRVHLQWHQVLW\LQPJZHHNVDQGUHODWLYHGRVHLQWHQVLW\
7KHQXPEHUSHUFHQWDJHRISDWLHQWVUHTXLULQJGUXJGLVFRQWLQXDWLRQGXHWR$(VZLOOEHVXPPDUL]HG

$GYHUVH(YHQWV
7KH$(YHUEDWLPGHVFULSWLRQVLQYHVWLJDWRU¶VGHVFULSWLRQIURPWKHH&5)ZLOOEHFRGHGXVLQJ0HGLFDO
'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV0HG'5$$GYHUVHHYHQWVZLOOEHFRGHGWR0HG'5$YRU
KLJKHUORZHUOHYHOWHUPSUHIHUUHGWHUPDQGSULPDU\V\VWHPRUJDQFODVV62&
$7($(LVGHILQHGDVDQ$(WKDWKDGDQRQVHWGDWHRUDZRUVHQLQJLQVHYHULW\IURPEDVHOLQHSUHWUHDWPHQW
RQRUDIWHUWKHGDWHRIILUVWGRVHRIVWXG\GUXJXSWRGD\VIROORZLQJVWXG\GUXJGLVFRQWLQXDWLRQ6DIHW\
)ROORZXSYLVLWRULQLWLDWLRQRIQHZDQWLFDQFHUWKHUDS\7UHDWPHQWHPHUJHQW$(VDOVRLQFOXGHDOOLU$(V
%*%$RQO\DQGUHODWHGVHULRXV$(VUHFRUGHGXSWRGD\VDIWHUWKHODVWGRVHRI%*%$UHJDUGOHVV
RIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\2QO\WKRVH$(VWKDWZHUHWUHDWPHQWHPHUJHQW
ZLOOEHLQFOXGHGLQVXPPDU\WDEOHV$OO$(VWUHDWPHQWHPHUJHQWRURWKHUZLVHZLOOEHSUHVHQWHGLQSDWLHQW
GDWDOLVWLQJV
7KHLQFLGHQFHRI7($(VZLOOEHUHSRUWHGDVWKHQXPEHUSHUFHQWDJHRISDWLHQWVZLWK7($(VE\62&DQG
SUHIHUUHGWHUP$SDWLHQWZLOOEHFRXQWHGRQO\RQFHE\WKHKLJKHVWVHYHULW\JUDGHSHU1&,&7&$(Y
ZLWKLQDQ62&DQGSUHIHUUHGWHUPHYHQLIWKHSDWLHQWH[SHULHQFHGPRUHWKDQ7($(ZLWKLQDVSHFLILF62&
DQGSUHIHUUHGWHUP7KHQXPEHUSHUFHQWDJHRISDWLHQWVZLWK7($(VZLOODOVREHVXPPDUL]HGE\
UHODWLRQVKLSWRWKHVWXG\GUXJ7UHDWPHQWUHODWHG$(VLQFOXGHWKRVHHYHQWVFRQVLGHUHGE\WKHLQYHVWLJDWRUWR
EHGHILQLWHO\SRVVLEO\RUSUREDEO\UHODWHGWRVWXG\WUHDWPHQWRUZLWKPLVVLQJDVVHVVPHQWRIWKHFDXVDO
UHODWLRQVKLS$OO6$(VGHDWKV7($(V*UDGHLU$(VUHODWHG7($(VDQG7($(VWKDWOHGWRWUHDWPHQW
GLVFRQWLQXDWLRQGRVHLQWHUUXSWLRQRUGRVHGHOD\ZLOOEHVXPPDUL]HG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

/DERUDWRU\$QDO\VHV
&OLQLFDOODERUDWRU\HJKHPDWRORJ\VHUXPFKHPLVWU\YDOXHVZLOOEHHYDOXDWHGDVDSSURSULDWH$EQRUPDO
ODERUDWRU\YDOXHVZLOOEHIODJJHGDQGLGHQWLILHGDVWKRVHRXWVLGHDERYHRUEHORZWKHQRUPDOUDQJH
5HIHUHQFHQRUPDOUDQJHVIRUODERUDWRU\SDUDPHWHUVZLOOEHLQFOXGHGLQWKH&65IRUWKLVSURWRFRO
'HVFULSWLYHVXPPDU\VWDWLVWLFVHJQPHDQVWDQGDUGGHYLDWLRQPHGLDQPLQLPXPPD[LPXPIRUFRQWLQXRXV
YDULDEOHVQ>@IRUFDWHJRULFDOYDULDEOHVIRUODERUDWRU\SDUDPHWHUVDQGWKHLUFKDQJHVIURPEDVHOLQHZLOOEH
FDOFXODWHG/DERUDWRU\YDOXHVZLOOEHVXPPDUL]HGE\YLVLWDQGE\ZRUVWSRVWEDVHOLQHYLVLW
/DERUDWRU\SDUDPHWHUVWKDWDUHJUDGHGLQ1&,&7&$(YZLOOEHVXPPDUL]HGE\1&,&7&$(JUDGH,Q
WKHVXPPDU\RIODERUDWRU\SDUDPHWHUVE\1&,&7&$(JUDGHSDUDPHWHUVZLWK1&,&7&$(JUDGLQJLQERWK
KLJKDQGORZGLUHFWLRQVZLOOEHVXPPDUL]HGVHSDUDWHO\

9LWDO6LJQV
9LWDOVLJQSDUDPHWHUVDQGFKDQJHVIURPEDVHOLQHYDOXHVZLOOEHOLVWHGE\SDWLHQWDQGYLVLW

3K\VLFDO([DPLQDWLRQ
3K\VLFDOH[DPLQDWLRQUHVXOWVZLOOEHOLVWHG

2SKWKDOPRORJLF([DPLQDWLRQ
2SKWKDOPRORJLFH[DPLQDWLRQUHVXOWVZLOOEHOLVWHGE\SDWLHQW

3KDUPDFRNLQHWLF$QDO\VLV
3KDUPDFRNLQHWLFVDPSOHVZLOOEHFROOHFWHGLQWKLVVWXG\DVRXWOLQHGLQ$SSHQGL[DQGRQO\IURPSDWLHQWV
UHFHLYLQJ%*%$DWVLWHVWKDWDUHDEOHWRDGHTXDWHO\SHUIRUP3.VDPSOLQJKDQGOLQJDQGSURFHVVLQJ
SURFHGXUHVDVRXWOLQHGLQWKHODERUDWRU\PDQXDO%*%$SRVWGRVHDQGWURXJKVHUXPFRQFHQWUDWLRQGDWD
&WURXJKZLOOEHWDEXODWHGDQGVXPPDUL]HGE\YLVLWF\FOHDWZKLFKWKHVHFRQFHQWUDWLRQVDUHFROOHFWHG
'HVFULSWLYHVWDWLVWLFVZLOOLQFOXGHPHDQVPHGLDQVUDQJHVDQGVWDQGDUGGHYLDWLRQVDVDSSURSULDWH
$GGLWLRQDO3.DQDO\VHVLQFOXGLQJSRSXODWLRQ3.DQDO\VHVDQGH[SRVXUHUHVSRQVHHIILFDF\VDIHW\
HQGSRLQWVDQDO\VHVPD\EHFRQGXFWHGDVDSSURSULDWHDQGWKHUHVXOWVRIVXFKDQDO\VLVPD\EHUHSRUWHG
VHSDUDWHO\IURPWKH&65

,PPXQRJHQLFLW\$QDO\VLV
7KHLPPXQRJHQLFLW\UHVXOWVZLOOEHVXPPDUL]HGXVLQJGHVFULSWLYHVWDWLVWLFVE\WKHQXPEHUDQGSHUFHQWDJHRI
SDWLHQWVZKRGHYHORSGHWHFWDEOH$'$7KHLQFLGHQFHRISRVLWLYH$'$DQGQHXWUDOL]LQJ$'$ZLOOEH
UHSRUWHGIRUHYDOXDEOHSDWLHQWV7KHHIIHFWRILPPXQRJHQLFLW\RQ3.HIILFDF\DQGVDIHW\PD\EHHYDOXDWHG
LIGDWDDOORZ

([SORUDWRU\$QDO\VHV
7KHSULPDU\SUHGLFWLYHELRPDUNHUDQDO\VLVLVEDVHGRQDVXEVHWRIWKHSDWLHQWVZLWKERWKDYDOLG3'/
H[SUHVVLRQDQGRUWXPRULQILOWUDWLQJO\PSKRF\WHV7,/VPHDVXUHPHQWDQGDWOHDVWRQHGLVHDVHDVVHVVPHQW
SRVWWUHDWPHQW$VXSSRUWLYHDQDO\VLVLVEDVHGRQSDWLHQWVZLWKDYDOLG3'/H[SUHVVLRQDQGRU7,/V


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
PHDVXUHPHQWLUUHVSHFWLYHRIWKHDYDLODELOLW\RISRVWWUHDWPHQWGLVHDVHDVVHVVPHQWV,QWKLVDQDO\VLVWKRVH
ZLWKRXWSRVWWUHDWPHQWGLVHDVHDVVHVVPHQWVZLOOEHLPSXWHGZLWKWKHZRUVWRXWFRPHLQWXPRUUHVSRQVH
([SORUDWRU\DQDO\VHVRIRWKHUFDQGLGDWHSUHGLFWLYHELRPDUNHUVLQFOXGLQJEXWQRWOLPLWHGWRJHQHH[SUHVVLRQ
SURILOLQJZLOOEHFRQGXFWHGVLPLODUO\

6DPSOH6L]H&RQVLGHUDWLRQ
7KH255SHU,5&LVDVVXPHGDVLQWKLVWULDO:LWKSDWLHQWVWKHSRZHULVWRGHPRQVWUDWHWKDW
WKH255LQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&LVVWDWLVWLFDOO\KLJKHUWKDQWKHKLVWRULFDOUDWHRI
%UXL[HWDOLQDELQRPLDOH[DFWWHVW7KH&,RIDQREVHUYHG255LV
ZKHQDSSUR[LPDWHO\SUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&SDWLHQWVDUHHQUROOHG:LWKLQQGOLQHRUUG
OLQHSOXVSDWLHQWVWKH&,RIWKHVDPH255LVZKHQQ LQHDFKSRSXODWLRQ

,QWHULP$QDO\VHV
1RLQWHULPDQDO\VHVDUHSODQQHG

678'<&200,77((6$1'&20081,&$7,21

,QGHSHQGHQW5HYLHZ&RPPLWWHH
$Q,5&ZLOOEHHVWDEOLVKHGWRSHUIRUPDQLQGHSHQGHQWUHYLHZRIDOOUDGLRORJLFDOLPDJHVIRUWKHHIILFDF\
DQDO\VLVDQGWRGHWHUPLQHDOOLQVWDQFHVRIUHVSRQVHDQGGLVHDVHSURJUHVVLRQRQWKHEDVLVRIWKH5(&,67Y
FULWHULDLQDGGLWLRQWRWKHORFDOLQYHVWLJDWRUUHYLHZRIUDGLRJUDSKV7KHUHVXOWVIURPWKHLQYHVWLJDWRU¶VUHYLHZ
RIUDGLRJUDSKLFLPDJHVZLOOEHXVHGWRGHWHUPLQHZKHWKHUSDWLHQWVVKRXOGEHHQUROOHGRUVKRXOGFRQWLQXHRQ
VWXG\WUHDWPHQW7KHWXPRUDVVHVVPHQWE\,5&ZLOOEHXVHGIRUWKHUHSRUWLQJRIWKHVWXG\UHVXOWV
$OOGHFLVLRQVPDGHGXULQJWKHSHUIRUPDQFHRIWKHVWXG\ZLOOEHRQWKHEDVLVRIWKHORFDOLQYHVWLJDWRU¶V
DVVHVVPHQWRIUDGLRJUDSKLFLPDJHVFOLQLFDOVWDWXVDQGUHOHYDQWH[DPLQDWLRQRIWKHSDWLHQWV6LWHVZLOOVXEPLW
VSHFLILFUDGLRJUDSKLFLPDJHILOHVWRWKHFHQWUDOL]HGGDWDUHYLHZIDFLOLW\GXULQJWKHVWXG\RQDQRQJRLQJEDVLV
RUDWWKHVSRQVRU¶VUHTXHVW'HWDLOHGUXOHVDQGJXLGHOLQHVIRUUDGLRJUDSKLFLPDJLQJDQGWXPRUDVVHVVPHQWVE\
,5&DUHRXWOLQHGVHSDUDWHO\LQWKH,PDJLQJ0DQXDODQG,5&&KDUWHU

6285&('2&80(176$1'$&&(66726285&('$7$'2&80(176
7KHLQYHVWLJDWRUPXVWPDLQWDLQDGHTXDWHDQGDFFXUDWHUHFRUGVWRHQVXUHWKDWWKHFRQGXFWRIWKHVWXG\PD\EH
IXOO\GRFXPHQWHG6XFKUHFRUGVLQFOXGHEXWDUHQRWOLPLWHGWRWKHSURWRFROSURWRFRODPHQGPHQWV,&)VDQG
GRFXPHQWDWLRQRI,5%,(&DQGJRYHUQPHQWDODSSURYDOV,QDGGLWLRQDWWKHHQGRIWKHVWXG\WKHLQYHVWLJDWRU
ZLOOUHFHLYHSDWLHQWGDWDZKLFKZLOOLQFOXGHDQDXGLWWUDLOFRQWDLQLQJDFRPSOHWHUHFRUGRIDOOFKDQJHVWRVXFK
GDWD

$FFHVVWR,QIRUPDWLRQIRU0RQLWRULQJ
,QDFFRUGDQFHZLWKWKH,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ,&+*&3JXLGHOLQHVWKHVWXG\PRQLWRU
PXVWKDYHGLUHFWDFFHVVWRWKHLQYHVWLJDWRU¶VVRXUFHGRFXPHQWDWLRQLQRUGHUWRYHULI\WKHGDWDUHFRUGHGLQWKH
H&5)VIRUFRQVLVWHQF\


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7KHPRQLWRULVUHVSRQVLEOHIRUURXWLQHUHYLHZRIWKHH&5)VDWUHJXODULQWHUYDOVWKURXJKRXWWKHVWXG\WRYHULI\
DGKHUHQFHWRWKHSURWRFRODQGWKHFRPSOHWHQHVVFRQVLVWHQF\DQGDFFXUDF\RIWKHGDWDEHLQJHQWHUHGRQWKHP
7KHPRQLWRUVKRXOGKDYHDFFHVVWRDQ\SDWLHQWUHFRUGVQHHGHGWRYHULI\WKHHQWULHVRQWKHH&5)V7KH
LQYHVWLJDWRUDJUHHVWRFRRSHUDWHZLWKWKHPRQLWRUWRHQVXUHWKDWDQ\SUREOHPVGHWHFWHGLQWKHFRXUVHRIWKHVH
PRQLWRULQJYLVLWVDUHUHVROYHG

$FFHVVWR,QIRUPDWLRQIRU$XGLWLQJRU,QVSHFWLRQV
5HSUHVHQWDWLYHVRIUHJXODWRU\DXWKRULWLHVRURI%HL*HQHPD\FRQGXFWLQVSHFWLRQVRUDXGLWVDQ\WLPHGXULQJRU
DIWHUFRPSOHWLRQRIWKLVFOLQLFDOVWXG\,IWKHLQYHVWLJDWRULVQRWLILHGRIDQLQVSHFWLRQE\DUHJXODWRU\DXWKRULW\
WKHLQYHVWLJDWRUDJUHHVWRQRWLI\WKHVSRQVRURULWVGHVLJQHHLPPHGLDWHO\7KHLQYHVWLJDWRUDJUHHVWRSURYLGH
WRUHSUHVHQWDWLYHVRIDUHJXODWRU\DJHQF\RU%HL*HQHDFFHVVWRUHFRUGVIDFLOLWLHVDQGSHUVRQQHOIRUWKH
HIIHFWLYHFRQGXFWRIDQ\LQVSHFWLRQRUDXGLW

48$/,7<$6685$1&($1'48$/,7<&21752/

5HJXODWRU\$XWKRULW\$SSURYDO
7KHVSRQVRUZLOOREWDLQDSSURYDOWRFRQGXFWWKHVWXG\IURPWKHDSSURSULDWHUHJXODWRU\DJHQF\LQDFFRUGDQFH
ZLWKDQ\DSSOLFDEOHFRXQWU\VSHFLILFUHJXODWRU\UHTXLUHPHQWVRUILOHWKHSURWRFROWRWKHDSSURSULDWHUHJXODWRU\
DJHQF\EHIRUHWKHVWXG\LVLQLWLDWHGDWDVWXG\FHQWHULQWKDWFRXQWU\

4XDOLW\$VVXUDQFH
7RHQVXUHFRPSOLDQFHZLWK*&3DQGDOODSSOLFDEOHUHJXODWRU\UHTXLUHPHQWVWKHVSRQVRUPD\FRQGXFWD
TXDOLW\DVVXUDQFHDXGLW5HJXODWRU\DJHQFLHVPD\DOVRFRQGXFWDUHJXODWRU\LQVSHFWLRQRIWKLVVWXG\6XFK
DXGLWVLQVSHFWLRQVFDQRFFXUDWDQ\WLPHGXULQJRUDIWHUFRPSOHWLRQRIWKHVWXG\,IDQDXGLWRULQVSHFWLRQ
RFFXUVWKHLQYHVWLJDWRUDQGLQVWLWXWLRQDJUHHWRDOORZWKHDXGLWRULQVSHFWRUGLUHFWDFFHVVWRDOOUHOHYDQW
GRFXPHQWVDQGWRDOORFDWHKLVKHUWLPHDQGWKHWLPHRIKLVKHUSHUVRQQHOWRWKHDXGLWRULQVSHFWRUWRGLVFXVV
ILQGLQJVDQGDQ\UHOHYDQWLVVXHV

6WXG\6LWH,QVSHFWLRQV
7KLVVWXG\ZLOOEHRUJDQL]HGSHUIRUPHGDQGUHSRUWHGLQFRPSOLDQFHZLWKWKHSURWRFROVWDQGDUGRSHUDWLQJ
SURFHGXUHVZRUNLQJSUDFWLFHGRFXPHQWVDQGDSSOLFDEOHUHJXODWLRQVDQGJXLGHOLQHV6LWHDXGLWVPD\EHPDGH
SHULRGLFDOO\E\WKHVSRQVRU¶VRUWKHFRQWUDFWUHVHDUFKRUJDQL]DWLRQ¶VTXDOLILHGFRPSOLDQFHDXGLWLQJWHDP
ZKLFKLVDQLQGHSHQGHQWIXQFWLRQIURPWKHVWXG\WHDPUHVSRQVLEOHIRUFRQGXFWRIWKHVWXG\
6LWHYLVLWVZLOOEHFRQGXFWHGE\WKHVSRQVRURUDQDXWKRUL]HGUHSUHVHQWDWLYHWRLQVSHFWVWXG\GDWDSDWLHQWV¶
PHGLFDOUHFRUGVDQGH&5)V7KHLQYHVWLJDWRULVWRSHUPLWQDWLRQDODQGORFDOKHDOWKDXWKRULWLHVVSRQVRU
VWXG\PRQLWRUVUHSUHVHQWDWLYHVDQGFROODERUDWRUVDQG,5%,(&PHPEHUVWRLQVSHFWDOOIDFLOLWLHVDQGUHFRUGV
UHOHYDQWWRWKLVVWXG\


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

'UXJ$FFRXQWDELOLW\
7KHLQYHVWLJDWRURUGHVLJQHHLHSKDUPDFLVWLVUHVSRQVLEOHIRUHQVXULQJDGHTXDWHDFFRXQWDELOLW\RIDOOXVHG
DQGXQXVHGVWXG\GUXJ7KLVLQFOXGHVDFNQRZOHGJPHQWRIUHFHLSWRIHDFKVKLSPHQWRIVWXG\SURGXFW
TXDQWLW\DQGFRQGLWLRQSDWLHQWGUXJGLVSHQVDWLRQUHFRUGVDQGUHWXUQHGRUGHVWUR\HGVWXG\SURGXFW
'LVSHQVDWLRQUHFRUGVZLOOGRFXPHQWTXDQWLWLHVUHFHLYHGIURP%HL*HQHDQGTXDQWLWLHVGLVSHQVHGWRSDWLHQWV
LQFOXGLQJORWQXPEHUGDWHGLVSHQVHGSDWLHQWLGHQWLILHUQXPEHUDQGWKHLQLWLDOVRIWKHSHUVRQGLVSHQVLQJWKH
PHGLFDWLRQ
$WVWXG\LQLWLDWLRQWKHPRQLWRUZLOOHYDOXDWHWKHVLWH¶VVWDQGDUGRSHUDWLQJSURFHGXUHIRUVWXG\GUXJ
GLVSRVDOGHVWUXFWLRQWRHQVXUHWKDWLWFRPSOLHVZLWK%HL*HQHUHTXLUHPHQWVVHH3KDUPDF\0DQXDO$WWKH
HQGRIWKHVWXG\IROORZLQJILQDOGUXJLQYHQWRU\UHFRQFLOLDWLRQE\WKHPRQLWRUWKHVWXG\VLWHZLOOGLVSRVHRI
DQGRUGHVWUR\DOOXQXVHGVWXG\GUXJVXSSOLHVLQFOXGLQJHPSW\FRQWDLQHUVDFFRUGLQJWRWKHVHSURFHGXUHV,I
WKHVLWHFDQQRWPHHW%HL*HQH¶VUHTXLUHPHQWVIRUGLVSRVDODUUDQJHPHQWVZLOOEHPDGHEHWZHHQWKHVLWHDQG
%HL*HQHRULWVUHSUHVHQWDWLYHIRUGHVWUXFWLRQRUUHWXUQRIXQXVHGVWXG\GUXJVXSSOLHV
$OOGUXJVXSSOLHVDQGDVVRFLDWHGGRFXPHQWDWLRQZLOOEHSHULRGLFDOO\UHYLHZHGDQGYHULILHGE\WKHVWXG\
PRQLWRURYHUWKHFRXUVHRIWKHVWXG\

(7+,&63527(&7,212)+80$13$7,(176

(WKLFDO6WDQGDUG
7KLVVWXG\ZLOOEHFRQGXFWHGLQIXOOFRQIRUPDQFHZLWKWKH,&+(JXLGHOLQHIRU*&3DQGWKHSULQFLSOHVRI
WKH'HFODUDWLRQRI+HOVLQNLRUWKHODZVDQGUHJXODWLRQVRIWKHFRXQWU\LQZKLFKWKHUHVHDUFKLVFRQGXFWHG
ZKLFKHYHUDIIRUGVWKHJUHDWHUSURWHFWLRQWRWKHLQGLYLGXDO7KHVWXG\ZLOOFRPSO\ZLWKWKHUHTXLUHPHQWVRI
WKH,&+($JXLGHOLQH&OLQLFDO6DIHW\'DWD0DQDJHPHQW'HILQLWLRQVDQG6WDQGDUGVIRU([SHGLWHG
5HSRUWLQJ

,QVWLWXWLRQDO5HYLHZ%RDUG,QGHSHQGHQW(WKLFV&RPPLWWHH
7KLVSURWRFROWKH,&)VDQ\LQIRUPDWLRQWREHJLYHQWRWKHSDWLHQWDQGUHOHYDQWVXSSRUWLQJLQIRUPDWLRQPXVW
EHVXEPLWWHGWRWKH,5%,(&E\WKHSULQFLSDOLQYHVWLJDWRUDQGUHYLHZHGDQGDSSURYHGE\WKH,5%,(&EHIRUH
WKHVWXG\LVLQLWLDWHG,QDGGLWLRQDQ\SDWLHQWUHFUXLWPHQWPDWHULDOVPXVWEHDSSURYHGE\WKH,5%,(&
7KHSULQFLSDOLQYHVWLJDWRULVUHVSRQVLEOHIRUSURYLGLQJZULWWHQVXPPDULHVRIWKHVWDWXVRIWKHVWXG\WRWKH
,5%,(&DQQXDOO\RUPRUHIUHTXHQWO\LQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVSROLFLHVDQGSURFHGXUHV
HVWDEOLVKHGE\WKH,5%,(&,QYHVWLJDWRUVDUHDOVRUHVSRQVLEOHIRUSURPSWO\LQIRUPLQJWKH,5%,(&RIDQ\
SURWRFRODPHQGPHQWV,QDGGLWLRQWRWKHUHTXLUHPHQWVIRUUHSRUWLQJDOO$(VWRWKHVSRQVRULQYHVWLJDWRUV
PXVWFRPSO\ZLWKUHTXLUHPHQWVIRUUHSRUWLQJ6$(VWRWKHORFDOKHDOWKDXWKRULW\DQG,5%,(&,QYHVWLJDWRUV
PD\UHFHLYHZULWWHQ,1'VDIHW\UHSRUWVRURWKHUVDIHW\UHODWHGFRPPXQLFDWLRQVIURPWKHVSRQVRU
,QYHVWLJDWRUVDUHUHVSRQVLEOHIRUHQVXULQJWKDWVXFKUHSRUWVDUHUHYLHZHGDQGSURFHVVHGLQDFFRUGDQFHZLWK
KHDOWKDXWKRULW\UHTXLUHPHQWVDQGWKHSROLFLHVDQGSURFHGXUHVHVWDEOLVKHGE\WKHLU,5%,(&DQGDUFKLYHGLQ
WKHVLWH¶VVWXG\ILOH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

3URWRFRO$PHQGPHQWV
$Q\SURWRFRODPHQGPHQWVZLOOEHSUHSDUHGE\WKHVSRQVRU$OOSURWRFROPRGLILFDWLRQVPXVWEHVXEPLWWHGWR
FRPSHWHQWDXWKRULWLHVDFFRUGLQJWRORFDOUHTXLUHPHQWVDQGWRWKH,5%,(&WRJHWKHUZLWKLIDSSOLFDEOHD
UHYLVHGPRGHO,&)LQDFFRUGDQFHZLWKORFDOUHTXLUHPHQWV:ULWWHQGRFXPHQWDWLRQIURPFRPSHWHQW
DXWKRULWLHVDFFRUGLQJWRORFDOUHTXLUHPHQWVDQGIURPWKH,5%,(&DQGUHTXLUHGVLWHDSSURYDOPXVWEH
REWDLQHGE\WKHVSRQVRUEHIRUHFKDQJHVFDQEHLPSOHPHQWHGH[FHSWIRUFKDQJHVQHFHVVDU\WRHOLPLQDWHDQ
LPPHGLDWHKD]DUGWRSDWLHQWVRUFKDQJHVWKDWLQYROYHORJLVWLFDORUDGPLQLVWUDWLYHDVSHFWVRQO\HJFKDQJHLQ
VSRQVRUPHGLFDOPRQLWRURUFRQWDFWLQIRUPDWLRQ
,QIRUPDWLRQRQDQ\FKDQJHLQULVNDQGRUFKDQJHLQVFRSHPXVWEHSURYLGHGWRSDWLHQWVDOUHDG\DFWLYHO\
SDUWLFLSDWLQJLQWKHVWXG\DQGWKH\PXVWUHDGXQGHUVWDQGDQGVLJQHDFKUHYLVHG,&)FRQILUPLQJZLOOLQJQHVV
WRUHPDLQLQWKHWULDO

,QIRUPHG&RQVHQW
7KHVSRQVRU¶VVDPSOH,&)ZLOOEHSURYLGHGWRHDFKVLWH,IDSSOLFDEOHLWZLOOEHSURYLGHGLQDFHUWLILHG
WUDQVODWLRQRIWKHORFDOODQJXDJH7KHILQDO,5%,(&DSSURYHG,&)VPXVWEHSURYLGHGWRWKHVSRQVRUIRU
KHDOWKDXWKRULW\VXEPLVVLRQSXUSRVHVDFFRUGLQJWRORFDOUHTXLUHPHQWV
7KH,&)VPXVWEHVLJQHGDQGGDWHGE\WKHSDWLHQWRUWKHSDWLHQW¶VOHJDOO\DXWKRUL]HGUHSUHVHQWDWLYHEHIRUHKLV
RUKHUSDUWLFLSDWLRQLQWKHVWXG\7KHFDVHKLVWRU\RUFOLQLFDOUHFRUGVIRUHDFKSDWLHQWVKDOOGRFXPHQWWKH
LQIRUPHGFRQVHQWSURFHVVDQGWKDWZULWWHQLQIRUPHGFRQVHQWZDVREWDLQHGSULRUWRSDUWLFLSDWLRQLQWKHVWXG\
7KH,&)VZLOOEHUHYLVHGZKHQHYHUWKHUHDUHFKDQJHVWRVWXG\SURFHGXUHVRUZKHQQHZLQIRUPDWLRQEHFRPHV
DYDLODEOHWKDWPD\DIIHFWWKHZLOOLQJQHVVRIWKHSDWLHQWWRSDUWLFLSDWH7KHILQDOUHYLVHG,5%,(&DSSURYHG
&RQVHQW)RUPVPXVWEHSURYLGHGWRWKHVSRQVRUIRUKHDOWKDXWKRULW\VXEPLVVLRQSXUSRVHV
3DWLHQWVPXVWEHUHFRQVHQWHGWRWKHPRVWFXUUHQWYHUVLRQRIWKH,&)VRUWRDVLJQLILFDQWQHZ
LQIRUPDWLRQILQGLQJVDGGHQGXPLQDFFRUGDQFHZLWKDSSOLFDEOHODZVDQG,5%,(&SROLF\GXULQJWKHLU
SDUWLFLSDWLRQLQWKHVWXG\)RUDQ\XSGDWHGRUUHYLVHG,&)VWKHFDVHKLVWRU\RUFOLQLFDOUHFRUGVIRUHDFK
SDWLHQWVKDOOGRFXPHQWWKHLQIRUPHGFRQVHQWSURFHVVDQGWKDWZULWWHQLQIRUPHGFRQVHQWZDVREWDLQHGXVLQJ
WKHXSGDWHGUHYLVHG,&)VIRUFRQWLQXHGSDUWLFLSDWLRQLQWKHVWXG\
$FRS\RIHDFKVLJQHG,&)PXVWEHSURYLGHGWRWKHSDWLHQWRUWKHSDWLHQW¶VOHJDOO\DXWKRUL]HGUHSUHVHQWDWLYH
$OOVLJQHGDQGGDWHG,&)VPXVWUHPDLQLQHDFKSDWLHQW¶VVWXG\ILOHRULQWKHVLWHILOHDQGPXVWEHDYDLODEOHIRU
YHULILFDWLRQE\VWXG\PRQLWRUVDWDQ\WLPH
$VGLVFXVVHGLQ6HFWLRQLQYHVWLJDWRUVPXVWREWDLQZULWWHQLQIRUPHGFRQVHQWIRUWUHDWPHQWEH\RQG
UDGLRORJLFGLVHDVHSURJUHVVLRQDQGLQIRUPSDWLHQWVWKDWWKLVSUDFWLFHLVQRWFRQVLGHUHGVWDQGDUGLQWKH
WUHDWPHQWRIFDQFHU

3DWLHQWDQG'DWD&RQILGHQWLDOLW\
7KHVSRQVRUZLOOPDLQWDLQFRQILGHQWLDOLW\VWDQGDUGVE\FRGLQJHDFKSDWLHQWHQUROOHGLQWKHVWXG\WKURXJK
DVVLJQPHQWRIDXQLTXHSDWLHQWLGHQWLILFDWLRQQXPEHU7KLVDSSURDFKHQVXUHVWKDWSDWLHQWV¶QDPHVDUHQRW
LQFOXGHGLQDQ\GDWDVHWWUDQVPLWWHGWRDQ\VSRQVRUORFDWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
3DWLHQWPHGLFDOLQIRUPDWLRQREWDLQHGE\WKLVVWXG\LVFRQILGHQWLDODQGPD\RQO\EHGLVFORVHGWRWKLUGSDUWLHV
DVSHUPLWWHGE\WKHVLJQHG,&)RUDVHSDUDWHDXWKRUL]DWLRQIRUWKHXVHDQGGLVFORVXUHRISHUVRQDOKHDOWK
LQIRUPDWLRQWKDWKDVEHHQVLJQHGE\WKHSDWLHQWXQOHVVSHUPLWWHGRUUHTXLUHGE\ODZ
0HGLFDOLQIRUPDWLRQPD\EHJLYHQWRDSDWLHQW¶VSHUVRQDOSK\VLFLDQRURWKHUDSSURSULDWHPHGLFDOSHUVRQQHO
UHVSRQVLEOHIRUWKHSDWLHQW¶VZHOIDUHIRUWUHDWPHQWSXUSRVHV
'DWDJHQHUDWHGE\WKLVVWXG\PXVWEHDYDLODEOHIRULQVSHFWLRQXSRQUHTXHVWE\UHSUHVHQWDWLYHVRIWKH)'$
&KLQD)'$DQGDOORWKHUQDWLRQDODQGORFDOKHDOWKDXWKRULWLHVE\VSRQVRUPRQLWRUVUHSUHVHQWDWLYHVDQG
FROODERUDWRUVDQGE\WKH,5%V,(&VIRUHDFKVWXG\VLWHDVDSSURSULDWH
7KHLQYHVWLJDWRUPXVWDVVXUHWKDWSDWLHQWV¶DQRQ\PLW\ZLOOEHVWULFWO\PDLQWDLQHGDQGWKDWWKHLULGHQWLWLHVDUH
SURWHFWHGIURPXQDXWKRUL]HGSDUWLHV7KHLQYHVWLJDWRUDJUHHVWKDWDOOLQIRUPDWLRQUHFHLYHGIURPVSRQVRU
LQFOXGLQJEXWQRWOLPLWHGWRWKH,%WKLVSURWRFROH&5)VWKHLQYHVWLJDWLRQDOQHZGUXJDQGDQ\RWKHUVWXG\
LQIRUPDWLRQUHPDLQWKHVROHDQGH[FOXVLYHSURSHUW\RIVSRQVRUGXULQJWKHFRQGXFWRIWKHVWXG\DQGWKHUHDIWHU
7KLVLQIRUPDWLRQLVQRWWREHGLVFORVHGWRDQ\WKLUGSDUW\H[FHSWHPSOR\HHVRUDJHQWVGLUHFWO\LQYROYHGLQWKH
FRQGXFWRIWKHVWXG\RUDVUHTXLUHGE\ODZZLWKRXWSULRUZULWWHQFRQVHQWIURPVSRQVRU7KHLQYHVWLJDWRU
IXUWKHUDJUHHVWRWDNHDOOUHDVRQDEOHSUHFDXWLRQVWRSUHYHQWWKHGLVFORVXUHE\DQ\HPSOR\HHRUDJHQWRIWKH
VWXG\VLWHWRDQ\WKLUGSDUW\RURWKHUZLVHLQWRWKHSXEOLFGRPDLQ

)LQDQFLDO'LVFORVXUH
,QYHVWLJDWRUVDUHUHTXLUHGWRSURYLGHWKHVSRQVRUZLWKVXIILFLHQWDFFXUDWHILQDQFLDOLQIRUPDWLRQLQ
DFFRUGDQFHZLWKUHJXODWLRQVWRDOORZWKHVSRQVRUWRVXEPLWFRPSOHWHGLVFORVXUHRUFHUWLILFDWLRQWRWKH
DEVHQFHRIFHUWDLQILQDQFLDOLQWHUHVWRIWKHFOLQLFDOLQYHVWLJDWRUVDQGRUGLVFORVHWKRVHILQDQFLDOLQWHUHVWVDV
UHTXLUHGWRWKHDSSURSULDWHKHDOWKDXWKRULWLHV7KLVLVLQWHQGHGWRHQVXUHILQDQFLDOLQWHUHVWVDQGDUUDQJHPHQWV
RIWKHFOLQLFDOLQYHVWLJDWRUVZLWKSDUWLHVVXSSRUWLQJWKHVWXG\WKDWFRXOGDIIHFWUHOLDELOLW\RIGDWDVXEPLWWHGWR
KHDOWKDXWKRULWLHVDUHLGHQWLILHGDQGGLVFORVHGE\WKHVSRQVRU,QYHVWLJDWRUVDUHUHVSRQVLEOHIRUSURYLGLQJ
LQIRUPDWLRQDERXWWKHLUILQDQFLDOLQWHUHVWVEHIRUHSDUWLFLSDWLRQLQWKHVWXG\DQGWRXSGDWHWKLVLQIRUPDWLRQLI
DQ\UHOHYDQWFKDQJHVRFFXUGXULQJWKHVWXG\DQGIRU\HDUDIWHUFRPSOHWLRQRIWKHVWXG\LHODVWSDWLHQWODVW
YLVLW

'$7$+$1'/,1*$1'5(&25'.((3,1*

'DWD&ROOHFWLRQDQG0DQDJHPHQW5HVSRQVLELOLWLHV

'DWD&ROOHFWLRQ
'DWDUHTXLUHGE\WKHSURWRFROZLOOEHHQWHUHGLQWRDQ('&V\VWHP
'DWDFROOHFWLRQLQWKHH&5)VKRXOGIROORZWKHLQVWUXFWLRQVGHVFULEHGLQWKHH&5)&RPSOHWLRQ*XLGHOLQHV
7KHLQYHVWLJDWRUKDVXOWLPDWHUHVSRQVLELOLW\IRUWKHFROOHFWLRQDQGUHSRUWLQJRIDOOFOLQLFDOGDWDHQWHUHGLQWKH
H&5)7KHLQYHVWLJDWRURUGHOHJDWHGGHVLJQHHZKRLVLQFOXGHGRQ)RUP)'$RUHTXLYDOHQWVXFKDVD
6WDWHPHQWRI,QYHVWLJDWRUDVDSSOLFDEOHIRU1RQ86,QYHVWLJDWRUVPXVWVLJQWKHFRPSOHWHGFDVHERRNVWR
DWWHVWWRLWVDFFXUDF\DXWKHQWLFLW\DQGFRPSOHWHQHVV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
'DWDFRQWDLQHGLQWKHH&5)VDUHWKHVROHSURSHUW\RI%HL*HQHDQGVKRXOGQRWEHPDGHDYDLODEOHLQDQ\IRUP
WRWKLUGSDUWLHVZLWKRXWZULWWHQSHUPLVVLRQIURP%HL*HQHH[FHSWIRUDXWKRUL]HGUHSUHVHQWDWLYHVRI%HL*HQH
RUDSSURSULDWHUHJXODWRU\DXWKRULWLHV

'DWD0DQDJHPHQW&RGLQJ
$OOILQDOSDWLHQWGDWDERWKH&5)DQGH[WHUQDOGDWDHJODERUDWRU\GDWDFROOHFWHGDFFRUGLQJWRWKHSURWRFRO
ZLOOEHVWRUHGDW%HL*HQHDWWKHHQGRIWKHVWXG\
6WDQGDUGSURFHGXUHVLQFOXGLQJIROORZLQJGDWDUHYLHZJXLGHOLQHVFRPSXWHUL]HGYDOLGDWLRQWRSURGXFHTXHULHV
DQGPDLQWHQDQFHRIDQDXGLWILOHZKLFKLQFOXGHVDOOGDWDEDVHPRGLILFDWLRQVZLOOEHIROORZHGWRVXSSRUW
DFFXUDWHGDWDFROOHFWLRQ'DWDZLOOEHUHYLHZHGIRURXWOLHUVORJLFGDWDLQFRQVLVWHQFLHVDQGFRPSOHWHQHVV
'XULQJWKHFRXUVHRIWKHVWXG\DVWXG\PRQLWRUFOLQLFDOUHVHDUFKDVVRFLDWHZLOOPDNHVLWHYLVLWVWRUHYLHZ
SURWRFROFRPSOLDQFHFRPSDUHH&5)VDJDLQVWLQGLYLGXDOSDWLHQW¶VPHGLFDOUHFRUGVDQGHQVXUHWKDWWKHVWXG\LV
EHLQJFRQGXFWHGDFFRUGLQJWRSHUWLQHQWUHJXODWRU\UHTXLUHPHQWV
(OHFWURQLF&5)HQWULHVZLOOEHYHULILHGZLWKVRXUFHGRFXPHQWDWLRQ7KHUHYLHZRIPHGLFDOUHFRUGVZLOOEH
SHUIRUPHGLQDPDQQHUWRHQVXUHWKDWSDWLHQWFRQILGHQWLDOLW\LVPDLQWDLQHG&KHFNLQJWKHH&5)VIRU
FRPSOHWHQHVVFODULW\DQGFURVVFKHFNLQJZLWKVRXUFHGRFXPHQWVLVUHTXLUHGWRPRQLWRUWKHSURJUHVVRIWKH
VWXG\'LUHFWDFFHVVWRVRXUFHGDWDLVDOVRUHTXLUHGIRULQVSHFWLRQVDQGDXGLWVDQGZLOOEHFDUULHGRXWJLYLQJ
GXHFRQVLGHUDWLRQWRGDWDSURWHFWLRQDQGPHGLFDOFRQILGHQWLDOLW\
$GYHUVHHYHQWVDQGFRQFRPLWDQWGLVHDVHVPHGLFDOKLVWRU\ZLOOEHFRGHGXVLQJ0HG'5$YRUKLJKHU
&RQFRPLWDQWPHGLFDWLRQVZLOOEHFRGHGXVLQJWKH:RUOG+HDOWK2UJDQL]DWLRQ'UXJ'LFWLRQDU\

6WXG\5HFRUGV5HWHQWLRQ
7KHLQYHVWLJDWRUPXVWPDLQWDLQDGHTXDWHDQGDFFXUDWHUHFRUGVWRHQDEOHWKHFRQGXFWRIWKHVWXG\WREHIXOO\
GRFXPHQWHGDQGWKHVWXG\GDWDWREHVXEVHTXHQWO\YHULILHG7KHVHGRFXPHQWVVKRXOGEHFODVVLILHGLQWRDW
OHDVWWKHIROORZLQJFDWHJRULHVLQYHVWLJDWRU¶VVWXG\ILOHDQGSDWLHQWFOLQLFDOVRXUFHGRFXPHQWV
7KHLQYHVWLJDWRU¶VVWXG\ILOHZLOOFRQWDLQWKHSURWRFRODPHQGPHQWVH&5)DQGTXHU\IRUPV,5%,(&DQG
JRYHUQPHQWDODSSURYDOZLWKFRUUHVSRQGHQFHLQIRUPHGFRQVHQWGUXJUHFRUGVVWDIIFXUULFXOXPYLWDHDQG
DXWKRUL]DWLRQIRUPVDQGRWKHUDSSURSULDWHGRFXPHQWVDQGFRUUHVSRQGHQFH
3DWLHQWFOLQLFDOVRXUFHGRFXPHQWVXVXDOO\GHILQHGE\WKHSURMHFWLQDGYDQFHWRUHFRUGNH\HIILFDF\VDIHW\
SDUDPHWHUVLQGHSHQGHQWRIWKHH&5)VZRXOGLQFOXGHGRFXPHQWVVXFKDVDOWKRXJKQRWEHOLPLWHGWRWKH
IROORZLQJSDWLHQWKRVSLWDOFOLQLFUHFRUGVSK\VLFLDQ¶VDQGQXUVH¶VQRWHVDSSRLQWPHQWERRNRULJLQDO
ODERUDWRU\UHSRUWVHOHFWURFDUGLRJUDPHOHFWURHQFHSKDORJUDP;UD\SDWKRORJ\DQGVSHFLDODVVHVVPHQW
UHSRUWVFRQVXOWDQWOHWWHUVVFUHHQLQJDQGHQUROOPHQWORJHWF
)ROORZLQJFORVXUHRIWKHVWXG\WKHLQYHVWLJDWRUPXVWPDLQWDLQDOOVWXG\UHFRUGVLQDVDIHDQGVHFXUHORFDWLRQ
7KHUHFRUGVPXVWEHPDLQWDLQHGWRDOORZHDV\DQGWLPHO\UHWULHYDOZKHQQHHGHGHJDXGLWRULQVSHFWLRQ
DQGZKHQHYHUIHDVLEOHWRDOORZDQ\VXEVHTXHQWUHYLHZRIGDWDLQFRQMXQFWLRQZLWKDVVHVVPHQWRIWKHIDFLOLW\
VXSSRUWLQJV\VWHPVDQGSHUVRQQHO:KHUHSHUPLWWHGE\ORFDOODZVUHJXODWLRQVRULQVWLWXWLRQDOSROLF\VRPH
RUDOORIWKHVHUHFRUGVFDQEHPDLQWDLQHGLQDIRUPDWRWKHUWKDQKDUGFRS\HJPLFURILFKHVFDQQHG
HOHFWURQLFKRZHYHUFDXWLRQQHHGVWREHH[HUFLVHGEHIRUHVXFKDFWLRQLVWDNHQ7KHLQYHVWLJDWRUPXVWDVVXUH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
WKDWDOOUHSURGXFWLRQVDUHOHJLEOHDUHDWUXHDQGDFFXUDWHFRS\RIWKHRULJLQDODQGPHHWDFFHVVLELOLW\DQG
UHWULHYDOVWDQGDUGVLQFOXGLQJUHJHQHUDWLQJDKDUGFRS\LIUHTXLUHG)XUWKHUPRUHWKHLQYHVWLJDWRUPXVW
HQVXUHWKHUHLVDQDFFHSWDEOHEDFNXSRIWKHVHUHSURGXFWLRQVDQGWKDWDQDFFHSWDEOHTXDOLW\FRQWUROSURFHVV
H[LVWVIRUPDNLQJWKHVHUHSURGXFWLRQV
7KHVSRQVRUZLOOLQIRUPWKHLQYHVWLJDWRURIWKHWLPHSHULRGIRUUHWDLQLQJWKHVHUHFRUGVWRFRPSO\ZLWKDOO
DSSOLFDEOHUHJXODWRU\UHTXLUHPHQWV7KHPLQLPXPUHWHQWLRQWLPHZLOOPHHWWKHVWULFWHVWVWDQGDUGDSSOLFDEOH
WRWKDWVWXG\FHQWHUIRUWKHVWXG\DVGLFWDWHGE\DQ\LQVWLWXWLRQDOUHTXLUHPHQWVRUORFDOODZVRUUHJXODWLRQVRU
WKHVSRQVRU¶VVWDQGDUGVSURFHGXUHVRWKHUZLVHWKHUHWHQWLRQSHULRGZLOOGHIDXOWWR\HDUV
7KHLQYHVWLJDWRUPXVWQRWLI\WKHVSRQVRURIDQ\FKDQJHVLQWKHDUFKLYDODUUDQJHPHQWVLQFOXGLQJEXWQRW
OLPLWHGWRWKHIROORZLQJDUFKLYDODWDQRIIVLWHIDFLOLW\WUDQVIHURIRZQHUVKLSRIWKHUHFRUGVLQWKHHYHQWWKH
LQYHVWLJDWRUOHDYHVWKHVWXG\FHQWHU
,IWKHLQYHVWLJDWRUFDQQRWJXDUDQWHHWKLVDUFKLYLQJUHTXLUHPHQWDWWKHVWXG\VLWHIRUDQ\RUDOORIWKH
GRFXPHQWVVSHFLDODUUDQJHPHQWVPXVWEHPDGHEHWZHHQWKHLQYHVWLJDWRUDQG%HL*HQHWRVWRUHWKHVHLQVHDOHG
FRQWDLQHUVRXWVLGHRIWKHVLWHVRWKDWWKH\FDQEHUHWXUQHGVHDOHGWRWKHLQYHVWLJDWRULQFDVHRIDUHJXODWRU\
DXGLW:KHQVRXUFHGRFXPHQWVDUHUHTXLUHGIRUWKHFRQWLQXHGFDUHRIWKHSDWLHQWDSSURSULDWHFRSLHVVKRXOG
EHPDGHIRUVWRUDJHRXWVLGHRIWKHVLWH

3URWRFRO'HYLDWLRQV
7KHLQYHVWLJDWRULVUHVSRQVLEOHIRUHQVXULQJWKHVWXG\LVFRQGXFWHGLQDFFRUGDQFHZLWKWKHSURFHGXUHVDQG
HYDOXDWLRQVGHVFULEHGLQWKLVSURWRFRO,QYHVWLJDWRUVDVVHUWWKH\ZLOODSSO\GXHGLOLJHQFHWRDYRLGSURWRFRO
GHYLDWLRQV
7KHLQYHVWLJDWRULVWRGRFXPHQWDQGH[SODLQDQ\GHYLDWLRQVIURPWKHDSSURYHGSURWRFRO7KHLQYHVWLJDWRU
PXVWSURPSWO\UHSRUWDQ\PDMRUGHYLDWLRQVWKDWPLJKWLPSDFWSDWLHQWVDIHW\DQGRUGDWDLQWHJULW\WRWKH
VSRQVRUDQGWRWKH,5%,(&LQDFFRUGDQFHZLWKHVWDEOLVKHG,5%,(&SROLFLHVDQGSURFHGXUHV

3XEOLFDWLRQDQG'DWD6KDULQJ3ROLF\
$FOLQLFDOVWXG\UHSRUWZLOOEHSUHSDUHGDQGSURYLGHGWRWKHUHJXODWRU\DJHQF\LHV%HL*HQHZLOOHQVXUHWKDW
WKHUHSRUWPHHWVWKHVWDQGDUGVVHWRXWLQWKH,&+*XLGHOLQHIRU6WUXFWXUHDQG&RQWHQWRI&OLQLFDO6WXG\
5HSRUWV,&+(1RWHWKDWDQDEEUHYLDWHGUHSRUWPD\EHSUHSDUHGLQFHUWDLQFDVHV
7KHUHVXOWVRIWKLVVWXG\ZLOOEHSXEOLVKHGRUSUHVHQWHGDWVFLHQWLILFPHHWLQJVLQDWLPHO\REMHFWLYHDQG
FOLQLFDOO\PHDQLQJIXOPDQQHUWKDWLVFRQVLVWHQWZLWKJRRGVFLHQFHLQGXVWU\DQGUHJXODWRUJXLGDQFHDQGWKH
QHHGWRSURWHFWWKHLQWHOOHFWXDOSURSHUW\RI%HL*HQHVSRQVRUUHJDUGOHVVRIWKHRXWFRPHRIWKHWULDO7KH
GDWDJHQHUDWHGLQWKLVFOLQLFDOWULDODUHWKHH[FOXVLYHSURSHUW\RIWKHVSRQVRUDQGDUHFRQILGHQWLDO)RU
PXOWLFHQWHUVWXGLHVWKHILUVWSXEOLFDWLRQRUGLVFORVXUHRIVWXG\UHVXOWVVKDOOEHDFRPSOHWHMRLQWPXOWLFHQWHU
SXEOLFDWLRQRUGLVFORVXUHFRRUGLQDWHGE\WKHVSRQVRU7KHUHDIWHUDQ\VHFRQGDU\SXEOLFDWLRQVZLOOUHIHUHQFH
WKHRULJLQDOSXEOLFDWLRQV$XWKRUVKLSZLOOEHGHWHUPLQHGE\PXWXDODJUHHPHQWDQGDOODXWKRUVPXVWPHHW
WKHFULWHULDIRUDXWKRUVKLSHVWDEOLVKHGE\WKH,QWHUQDWLRQDO&RPPLWWHHRI0HGLFDO-RXUQDO(GLWRUVRUVWULFWHU
ORFDOFULWHULD,QWHUQDWLRQDO&RPPLWWHHRI0HGLFDO-RXUQDO(GLWRUV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$IWHUFRQFOXVLRQRIWKHVWXG\DQGZLWKRXWSULRUZULWWHQDSSURYDOIURP%HL*HQHLQYHVWLJDWRUVLQWKLVVWXG\
PD\FRPPXQLFDWHRUDOO\SUHVHQWRUSXEOLVKLQVFLHQWLILFMRXUQDOVRURWKHUVFKRODUO\PHGLDRQO\DIWHUWKH
IROORZLQJFRQGLWLRQVKDYHEHHQPHW
x
7KHUHVXOWVRIWKHVWXG\LQWKHLUHQWLUHW\KDYHEHHQSXEOLFO\GLVFORVHGE\RUZLWKWKHFRQVHQWRI
%HL*HQHLQDQDEVWUDFWPDQXVFULSWRUSUHVHQWDWLRQIRUPRU
x
7KHVWXG\KDVEHHQFRPSOHWHGDWDOOVWXG\VLWHVIRUDWOHDVW\HDUV
x
1RVXFKFRPPXQLFDWLRQSUHVHQWDWLRQRUSXEOLFDWLRQZLOOLQFOXGH%HL*HQH¶VFRQILGHQWLDO
LQIRUPDWLRQ
x
(DFKLQYHVWLJDWRUDJUHHVWRVXEPLWDOOPDQXVFULSWVRUFRQJUHVVDEVWUDFWVDQGSRVWHUVSUHVHQWDWLRQVWR
WKHVSRQVRUSULRUWRVXEPLVVLRQ7KLVDOORZVWKHVSRQVRUVWRSURWHFWSURSULHWDU\LQIRUPDWLRQSURYLGH
FRPPHQWVEDVHGRQLQIRUPDWLRQIURPRWKHUVWXGLHVWKDWPD\QRW\HWEHDYDLODEOHWRWKHLQYHVWLJDWRU
DQGHQVXUHVFLHQWLILFDQGFOLQLFDODFFXUDF\7KHGHWDLOVRIWKHSURFHVVHVRISURGXFLQJDQGUHYLHZLQJ
UHSRUWVPDQXVFULSWVDQGSUHVHQWDWLRQVEDVHGRQWKHGDWDIURPWKLVWULDOZLOOEHSUHVHQWHGLQWKH
LQYHVWLJDWRU¶VFOLQLFDOVWXG\DJUHHPHQW

6WXG\DQG6WXG\&HQWHU&ORVXUH
8SRQFRPSOHWLRQRIWKHVWXG\WKHPRQLWRUZLOOFRQGXFWWKHIROORZLQJDFWLYLWLHVLQFRQMXQFWLRQZLWKWKH
LQYHVWLJDWRURUVWXG\FHQWHUSHUVRQQHODVDSSURSULDWH
x
5HWXUQRIDOOVWXG\GDWDWRWKHVSRQVRU
x
5HVROYHDQGFORVHDOOGDWDTXHULHV
x
$FFRXQWDELOLW\UHFRQFLOLDWLRQDQGDUUDQJHPHQWVIRUXQXVHGVWXG\GUXJV
x
5HYLHZRIVWXG\UHFRUGVIRUFRPSOHWHQHVV
x
6KLSPHQWRI3.VDPSOHVWRDVVD\ODERUDWRULHV
,QDGGLWLRQWKHVSRQVRUUHVHUYHVWKHULJKWWRVXVSHQGRUSUHPDWXUHO\GLVFRQWLQXHWKLVVWXG\HLWKHUDWDVLQJOH
VWXG\FHQWHURUDWDOOVWXG\FHQWHUVDWDQ\WLPHIRUUHDVRQVLQFOXGLQJEXWQRWOLPLWHGWRVDIHW\RUHWKLFDO
LVVXHVRUVHYHUHQRQFRPSOLDQFH,IWKHVSRQVRUGHWHUPLQHVVXFKDFWLRQLVQHHGHGWKHVSRQVRUZLOOGLVFXVV
WKLVZLWKWKHLQYHVWLJDWRULQFOXGLQJWKHUHDVRQVIRUWDNLQJVXFKDFWLRQDWWKDWWLPH:KHQIHDVLEOHWKH
VSRQVRUZLOOSURYLGHDGYDQFHQRWLILFDWLRQWRWKHLQYHVWLJDWRURIWKHLPSHQGLQJDFWLRQSULRUWRLWWDNLQJHIIHFW
7KHVSRQVRUZLOOSURPSWO\LQIRUPDOORWKHULQYHVWLJDWRUVDQGRULQVWLWXWLRQVFRQGXFWLQJWKHVWXG\LIWKHVWXG\
LVVXVSHQGHGRUWHUPLQDWHGIRUVDIHW\UHDVRQVDQGZLOODOVRLQIRUPWKHUHJXODWRU\DXWKRULWLHVRIWKH
VXVSHQVLRQRUWHUPLQDWLRQRIWKHVWXG\DQGWKHUHDVRQVIRUWKHDFWLRQ,IUHTXLUHGE\DSSOLFDEOHUHJXODWLRQV
WKHLQYHVWLJDWRUPXVWLQIRUPWKH,(&,5%SURPSWO\DQGSURYLGHWKHUHDVRQIRUWKHVXVSHQVLRQRUWHUPLQDWLRQ
,IWKHVWXG\LVSUHPDWXUHO\GLVFRQWLQXHGDOOVWXG\GDWDPXVWEHUHWXUQHGWRWKHVSRQVRU,QDGGLWLRQ
DUUDQJHPHQWVZLOOEHPDGHIRUDOOXQXVHGVWXG\GUXJVLQDFFRUGDQFHZLWKWKHDSSOLFDEOHVSRQVRUSURFHGXUHV
IRUWKHVWXG\
)LQDQFLDOFRPSHQVDWLRQWRLQYHVWLJDWRUVDQGRULQVWLWXWLRQVZLOOEHLQDFFRUGDQFHZLWKWKHDJUHHPHQW
HVWDEOLVKHGEHWZHHQWKHLQYHVWLJDWRUDQGWKHVSRQVRU


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

,QIRUPDWLRQ'LVFORVXUHDQG,QYHQWLRQV
$OOLQIRUPDWLRQSURYLGHGE\WKHVSRQVRUDQGDOOGDWDDQGLQIRUPDWLRQJHQHUDWHGE\WKHVWXG\FHQWHUDVSDUWRI
WKHVWXG\RWKHUWKDQDSDWLHQW¶VPHGLFDOUHFRUGVLVWKHVROHSURSHUW\RIWKHVSRQVRU
$OOULJKWVWLWOHDQGLQWHUHVWVLQDQ\LQYHQWLRQVNQRZKRZRURWKHULQWHOOHFWXDORULQGXVWULDOSURSHUW\ULJKWV
ZKLFKDUHFRQFHLYHGRUUHGXFHGWRSUDFWLFHE\WKHVWXG\FHQWHUSHUVRQQHOGXULQJWKHFRXUVHRIRUDVDUHVXOWRI
WKHVWXG\DUHWKHVROHSURSHUW\RIWKHVSRQVRUDQGDUHKHUHE\DVVLJQHGWRWKHVSRQVRU
,IDZULWWHQFRQWUDFWIRUWKHFRQGXFWRIWKHVWXG\ZKLFKLQFOXGHVRZQHUVKLSSURYLVLRQVLQFRQVLVWHQWZLWKWKLV
VWDWHPHQWLVH[HFXWHGEHWZHHQWKHVSRQVRUDQGWKHVWXG\FHQWHUWKDWFRQWUDFW¶VRZQHUVKLSSURYLVLRQVVKDOO
DSSO\UDWKHUWKDQWKLVVWDWHPHQW
$OOLQIRUPDWLRQSURYLGHGE\WKHVSRQVRUDQGDOOGDWDDQGLQIRUPDWLRQJHQHUDWHGE\WKHVWXG\FHQWHUDVSDUWRI
WKHVWXG\RWKHUWKDQDSDWLHQW¶VPHGLFDOUHFRUGVZLOOEHNHSWFRQILGHQWLDOE\WKHLQYHVWLJDWRUDQGRWKHUVWXG\
FHQWHUSHUVRQQHO7KLVLQIRUPDWLRQDQGGDWDZLOOQRWEHXVHGE\WKHLQYHVWLJDWRURURWKHUVWXG\FHQWHU
SHUVRQQHOIRUDQ\SXUSRVHRWKHUWKDQFRQGXFWLQJWKHVWXG\ZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKHVSRQVRU
7KHVHUHVWULFWLRQVGRQRWDSSO\WR
x
,QIRUPDWLRQZKLFKEHFRPHVSXEOLFO\DYDLODEOHWKURXJKQRIDXOWRIWKHLQYHVWLJDWRURUVWXG\FHQWHU
SHUVRQQHO
x
,QIRUPDWLRQZKLFKLVQHFHVVDU\WRGLVFORVHLQFRQILGHQFHWRDQ,(&,5%VROHO\IRUWKHHYDOXDWLRQRI
WKHVWXG\
x
,QIRUPDWLRQZKLFKLVQHFHVVDU\WRGLVFORVHLQRUGHUWRSURYLGHDSSURSULDWHPHGLFDOFDUHWRDSDWLHQW
x
6WXG\UHVXOWVZKLFKPD\EHSXEOLVKHGDVGHVFULEHGLQ6HFWLRQ
,IDZULWWHQFRQWUDFWIRUWKHFRQGXFWRIWKHVWXG\ZKLFKLQFOXGHVSURYLVLRQVLQFRQVLVWHQWZLWKWKLVVWDWHPHQWLV
H[HFXWHGWKDWFRQWUDFW¶VSURYLVLRQVVKDOODSSO\UDWKHUWKDQWKLVVWDWHPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI

5()(5(1&(6
$$6/','6$+&9*XLGDQFH3DQHO+HSDWLWLV&JXLGDQFH$$6/','6$UHFRPPHQGDWLRQVIRUWHVWLQJ
PDQDJLQJDQGWUHDWLQJDGXOWVLQIHFWHGZLWKKHSDWLWLV&YLUXV+HSDWRORJ\±
%DORJK-9LFWRU'$VKDP(+HWDO+HSDWRFHOOXODUFDUFLQRPDDUHYLHZ-+HSDWRFHOO&DUFLQRPD
±
%HHUV6$*OHQQLH0-:KLWH$/,QIOXHQFHRILPPXQRJOREXOLQLVRW\SHRQWKHUDSHXWLFDQWLERG\IXQFWLRQ
%ORRG
%HUVDQHOOL0DQG%XWL6)URPWDUJHWLQJWKHWXPRUWRWDUJHWLQJWKHLPPXQHV\VWHP7UDQVYHUVDOFKDOOHQJHV
LQRQFRORJ\ZLWKWKHLQKLELWLRQRIWKH3'3'/D[LV:RUOG-&OLQ2QFRO)HE
%RVFK);5LEHV-&OpULHV5HWDO(SLGHPLRORJ\RI+HSDWRFHOOXODU&DUFLQRPD&OLQ/LYHU'LV
0D\
%UDKPHU-5/DFFKHWWL&6FKQHLGHU%-HWDO0DQDJHPHQWRI,PPXQH5HODWHG$GYHUVH(YHQWVLQ3DWLHQWV
7UHDWHG:LWK,PPXQH&KHFNSRLQW,QKLELWRU7KHUDS\$PHULFDQ6RFLHW\RI&OLQLFDO2QFRORJ\&OLQLFDO
3UDFWLFH*XLGHOLQH0D\KWWSDVFRSXEVRUJGRLSGIGLUHFW-&2
%URRNPH\HU5DQG&URZOH\-$FRQILGHQFHLQWHUYDOIRUWKHPHGLDQVXUYLYDOWLPH%LRPHWULFVS

%UXL[-4LQ60HUOH3HWDO5HJRUDIHQLEIRUSDWLHQWVZLWKKHSDWRFHOOXODUFDUFLQRPDZKRSURJUHVVHGRQ
VRUDIHQLEWUHDWPHQW5(625&(DUDQGRPLVHGGRXEOHEOLQGSODFHERFRQWUROOHGSKDVHWULDO/DQFHW
-DQ
%UXL[-5HLJ06KHUPDQ0(YLGHQFH%DVHG'LDJQRVLV6WDJLQJDQG7UHDWPHQWRI3DWLHQWV:LWK
+HSDWRFHOOXODU&DUFLQRPD*DVWURHQWHURORJ\
&KHQJ$)LQQ564LQ6HWDO3KDVH,,,WULDORIOHQYDWLQLE/(1YVVRUDIHQLE625LQILUVWOLQHWUHDWPHQW
RISDWLHQWVSWVZLWKXQUHVHFWDEOHKHSDWRFHOOXODUFDUFLQRPDX+&&-&OLQ2QFROBVXSSO
&KLED.<RVKLWVXJX+.\RVDND<HWDO$FRPSUHKHQVLYHUHYLHZRIWKHSKDUPDFRNLQHWLFVRIDSSURYHG
WKHUDSHXWLFPRQRFORQDODQWLERGLHVLQ-DSDQ$UH-DSDQHVHSKDVH,VWXGLHVVWLOOQHHGHG"-&OLQ3KDUPDFRO

&KRR637DQ:/*RK%.HWDO&RPSDULVRQRIKHSDWRFHOOXODUFDUFLQRPDLQ(DVWHUQYHUVXV:HVWHUQ
SRSXODWLRQV&DQFHU±
&OLQLFDO7ULDOV)DFLOLWDWLRQ*URXS&7)*5HFRPPHQGDWLRQVUHODWHGWRFRQWUDFHSWLRQDQGSUHJQDQF\WHVWLQJ
LQFOLQLFDOWULDOV6HSWHPEHUKWWSZZZKPDHXILOHDGPLQGDWHLHQ+XPDQB0HGLFLQHV
$ERXWB+0$:RUNLQJB*URXSV&7)*BB+0$B&7)*B&RQWUDFHSWLRQSGI
'DKDQ56HJD((QJHOKDUGW-HWDO)FJ5V0RGXODWHWKH$QWLWXPRU$FWLYLW\RI$QWLERGLHV7DUJHWLQJWKH
3'3'/$[LV&DQFHU&HOO
(LVHQKDXHU(7KHUDVVH3%RJDHUWV-HWDO1HZUHVSRQVHHYDOXDWLRQFULWHULDLQVROLGWXPRXUVUHYLVHG
5(&,67JXLGHOLQH9HUVLRQ(XU-&DQFHU
(O.KRXHLU\$%6DQJUR%<DX7HWDO1LYROXPDELQSDWLHQWVZLWKDGYDQFHGKHSDWRFHOOXODUFDUFLQRPD
&KHFN0DWHDQRSHQODEHOQRQFRPSDUDWLYHSKDVHGRVHHVFDODWLRQDQGH[SDQVLRQWULDO
/DQFHW$SUSLL6
(O6HUDJ+%(SLGHPLRORJ\RIYLUDOKHSDWLWLVDQGKHSDWRFHOOXODUFDUFLQRPD*DVWURHQWHURORJ\
0D\


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
(XURSHDQ0HGLFLQHV$JHQF\*XLGHOLQHRQWKH(YDOXDWLRQRI$QWLFDQFHU0HGLFLQDO3URGXFWVLQ0DQ
'HFHPEHU
)RRGDQG'UXJ$GPLQLVWUDWLRQ3UHVV5HOHDVH6HSWHPEHU
KWWSVZZZIGDJRY'UXJV,QIRUPDWLRQ2Q'UXJV$SSURYHG'UXJVXFPKWP
)RRGDQG'UXJ$GPLQLVWUDWLRQ*XLGDQFHIRU,QGXVWU\&OLQLFDO7ULDO(QGSRLQWVIRUWKH$SSURYDORI&DQFHU
'UXJVDQG%LRORJLFV0D\
*RQJ:6RQJ4/X;HWDO3DFOLWD[HOLQGXFHG%+H[SUHVVLRQLQFDQFHUFHOOVYLDWKH0$3.SDWKZD\
-&KHPRWKHU±
*UHHQZRRG07KHQDWXUDOGXUDWLRQRIFDQFHU5HS3XEOLF+HDOWK0HG6XEM/RQG
*XO1DQGYDQ(JPRQG0$QWLERG\'HSHQGHQW3KDJRF\WRVLVRI7XPRU&HOOVE\0DFURSKDJHV$3RWHQW
(IIHFWRU0HFKDQLVPRI0RQRFORQDO$QWLERG\7KHUDS\RI&DQFHU&DQFHU5HV
+DDQHQ-%$*&DUERQQHO)5REHUW&HWDO0DQDJHPHQWRI7R[LFLWLHVIURP,PPXQRWKHUDS\(602
&OLQLFDO3UDFWLFH*XLGHOLQHVIRU'LDJQRVLV7UHDWPHQWDQG)ROORZXS$QQ2QFRO6XSSOHPHQW
LY±LY
+DQ.DQG.LP-+7UDQVDUWHULDOFKHPRHPEROL]DWLRQLQKHSDWRFHOOXODUFDUFLQRPDWUHDWPHQW%DUFHORQDFOLQLF
OLYHUFDQFHUVWDJLQJV\VWHP:RUOG-*DVWURHQWHURO6HS
,QWHUQDWLRQDO&RPPLWWHHRI0HGLFDO-RXUQDO(GLWRUV5HFRPPHQGDWLRQVIRUWKH&RQGXFW5HSRUWLQJ(GLWLQJ
DQG3XEOLFDWLRQRI6FKRODUO\:RUNLQ0HGLFDO-RXUQDOV$YDLODEOHRQOLQHKWWSZZZLFPMHRUJ
$FFHVVHG$XJXVW
,SVHQ3UHVV5HOHDVH2FWREHUKWWSVZZZLSVHQFRPSUHVVBUHOHDVHLSVHQDQQRXQFHVSKDVH
FHOHVWLDOWULDOFDER]DQWLQLEPHHWVSULPDU\HQGSRLQWRYHUDOOVXUYLYDOSDWLHQWVDGYDQFHGKHSDWRFHOOXODU
FDUFLQRPD
-LQ=DQG<RRQ++7KHSURPLVHRI3'LQKLELWRUVLQJDVWURHVRSKDJHDOFDQFHUVPLFURVDWHOOLWHLQVWDELOLW\
YV3'/-*DVWURLQWHVW2QFRO
.HDWLQJ*06RUDIHQLE$5HYLHZLQ+HSDWRFHOOXODU&DUFLQRPD7DUJHW2QFRO$SU
.RUHQ(6PLWK+:6KRUHV(HWDO5HFRPPHQGDWLRQVRQULVNEDVHGVWUDWHJLHVIRUGHWHFWLRQDQG
FKDUDFWHUL]DWLRQRIDQWLERGLHVDJDLQVWELRWHFKQRORJ\SURGXFWV-,PPXQRO0HWKRGV
/DEULMQ$)%XLMVVH$2YDQGHQ%UHPHU(7HWDO7KHUDSHXWLF,J*DQWLERGLHVHQJDJHLQ)DEDUPH[FKDQJH
ZLWKHQGRJHQRXVKXPDQ,J*LQYLYR1DW%LRWHFKQRO
/HYH\$66WHYHQV/$6FKPLG&+HWDO$QHZHTXDWLRQWRHVWLPDWHJORPHUXODUILOWUDWLRQUDWH$QQ,QWHUQ
0HG
/ORYHW-0%UX&%UXL[-3URJQRVLVRIKHSDWRFHOOXODUFDUFLQRPDWKH%&/&VWDJLQJFODVVLILFDWLRQ6HPLQ
/LYHU'LV
/ORYHW-0)XVWHU-%UXL[-HWDO7KH%DUFHORQDDSSURDFKGLDJQRVLVVWDJLQJDQGWUHDWPHQWRI
KHSDWRFHOOXODUFDUFLQRPD/LYHU7UDQVSO6XSSO66
/XFH\05%URZQ.$(YHUVRQ*7HWDO0LQLPDOFULWHULDIRUSODFHPHQWRIDGXOWVRQWKHOLYHUWUDQVSODQW
ZDLWLQJOLVW/LYHU7UDQVSO6XUJ
0DNDURY5XVKHU290HGLQD(FKHYHU]-'XII\$*HWDO7KH\LQDQG\DQJRIHYDVLRQDQGLPPXQH
DFWLYDWLRQLQ+&&-+HSDWRO


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
0D]]DIHUUR95HJDOLD('RFL5HWDO/LYHUWUDQVSODQWDWLRQIRUWKHWUHDWPHQWRIVPDOOKHSDWRFHOOXODU
FDUFLQRPDVLQSDWLHQWVZLWKFLUUKRVLV1(QJO-0HG±
0F'DQLHO$6$OYD$=KDQ7HWDO([SUHVVLRQRI3'/%+EHIRUHDQGDIWHUQHRDGMXYDQW
FKHPRWKHUDS\LQXURWKHOLDOFDUFLQRPD(XU8URO)RFXV±
1DWLRQDO&DQFHU,QVWLWXWH&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV9HUVLRQ&DQFHU7KHUDS\
(YDOXDWLRQ3URJUDP-XQH
2LNRQRPRSRXORV*$UDYLQG36DUNHU'/HQYDWLQLEDSRWHQWLDOEUHDNWKURXJKLQDGYDQFHGKHSDWRFHOOXODU
FDUFLQRPD")XWXUH2QFRO)HE
2NHQ00&UHHFK5+7RPH\'&HWDO7R[LFLW\DQG5HVSRQVH&ULWHULDRIWKH(DVWHUQ&RRSHUDWLYH
2QFRORJ\*URXS$P-&OLQ2QFRO
2QR3KDUPDFHXWLFDO&R/WG$YDLODEOHRQOLQHKWWSVZZZRQRFRMSHQJQHZVSGIVPBFQSGI
$FFHVVHG)HEUXDU\
3DWHO63.XU]URFN53'/([SUHVVLRQDVD3UHGLFWLYH%LRPDUNHULQ&DQFHU,PPXQRWKHUDS\0RO&DQFHU
7KHU±
3ULHWR-0HOHUR,6DQJUR%HWDO,PPXQRORJLFDOODQGVFDSHDQGLPPXQRWKHUDS\RIKHSDWRFHOOXODU
FDUFLQRPD1DW5HY*DVWURHQWHURO+HSDWRO
3XJK51+0XUUD\/\RQ,0'DZVRQ'/HWDO7UDQVHFWLRQRIWKHRHVRSKDJXVIRUEOHHGLQJRHVRSKDJHDO
YDULFHV%U-6XUJ
4LQ6%DL</LP+<HWDO5DQGRPL]HGPXOWLFHQWHURSHQODEHOVWXG\RIR[DOLSODWLQSOXV
IOXRURXUDFLOOHXFRYRULQYHUVXVGR[RUXELFLQDVSDOOLDWLYHFKHPRWKHUDS\LQSDWLHQWVZLWKDGYDQFHG
KHSDWRFHOOXODUFDUFLQRPDIURP$VLD-&OLQ2QFRO
6RDU-3XPSKUH\5&DQW$HWDO(PHUJHQF\WUHDWPHQWRIDQDSK\ODFWLFUHDFWLRQVJXLGHOLQHVIRUKHDOWKFDUH
SURYLGHUV5HVXVFLWDWLRQ
7HUUDXOW1$%]RZHM1+&KDQJ.0HWDO$$6/'JXLGHOLQHVIRUWUHDWPHQWRIFKURQLFKHSDWLWLV%
+HSDWRORJ\±
7RSDOLDQ6/+RGL)6%UDKPHU-5HWDO6DIHW\DFWLYLW\DQGLPPXQHFRUUHODWHVRIDQWLí3'DQWLERG\LQ
FDQFHU1(QJO-0HGí
7RUUH/$%UD\)6LHJHO5/HWDO*OREDO&DQFHU6WDWLVWLFV&$&DQFHU-&OLQ
7UH\&%XUQV'*DQG6DXQGHUV6-7UHDWPHQWRIKHSDWLFFRPDE\H[FKDQJHEORRGWUDQVIXVLRQ1(QJO-
0HG
9DQ'HU.UDDN/*RHO*5DPDQDQ.HWDO)OXRURXUDFLOXSUHJXODWHVFHOOVXUIDFH%+3'/
H[SUHVVLRQLQJDVWURLQWHVWLQDOFDQFHUV-,PPXQRWKHU&DQFHU
:DQJ&7KXGLXP.%+DQ0HWDO,QYLWURFKDUDFWHUL]DWLRQRIWKHDQWL3'DQWLERG\QLYROXPDE
%06DQGLQYLYRWR[LFRORJ\LQQRQKXPDQSULPDWHV&DQFHU,PPXQRO5HV
:RUREHF$6DQG5RVHQEHUJ$6$5LVN%DVHG$SSURDFKWR,PPXQRJHQLFLW\&RQFHUQVRI7KHUDSHXWLF
3URWHLQ3URGXFWV3DUW&RQVLGHULQJ&RQVHTXHQFHVRIWKH,PPXQH5HVSRQVHWRD3URWHLQ%LR3KDUP,QWO
DKWWSZZZELRSKDUPLQWHUQDWLRQDOFRPULVNEDVHGDSSURDFKLPPXQRJHQLFLW\FRQFHUQV
WKHUDSHXWLFSURWHLQSURGXFWVSDUWFRQVLGHULQJFRQVHTXH$FFHVVHG$XJXVW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
:RUREHF$6DQG5RVHQEHUJ$6$5LVN%DVHG$SSURDFKWR,PPXQRJHQLFLW\&RQFHUQVRI7KHUDSHXWLF
3URWHLQ3URGXFWV3DUW&RQVLGHULQJ+RVW6SHFLILFDQG3URGXFW6SHFLILF)DFWRUV,PSDFWLQJ
,PPXQRJHQLFLW\%LR3KDUP,QWOEKWWSZZZELRSKDUPLQWHUQDWLRQDOFRPULVNEDVHGDSSURDFK
LPPXQRJHQLFLW\FRQFHUQVWKHUDSHXWLFSURWHLQSURGXFWVSDUWFRQVLGHULQJKRVWVSH$FFHVVHG$XJXVW

<HQ&-0DUNPDQ%&KDR<HWDO3UHOLPLQDU\UHVXOWVRIDSKDVH$%VWXG\RI%*%$DQDQWL3'
PRQRFORQDODQWLERG\P$ELQSDWLHQWVZLWKDGYDQFHGKHSDWRFHOOXODUFDUFLQRPD+&&$QQ2QFRO
VXSSO






%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 :ULWWHQFRQVHQWPXVWEHREWDLQHGSULRUWRSHUIRUPLQJDQ\SURWRFROVSHFLILFSURFHGXUH5HVXOWVRIDWHVWSHUIRUPHGDVSDUWRIURXWLQHFOLQLFDOPDQDJHPHQWDUH
DFFHSWDEOHLQOLHXRIDVFUHHQLQJWHVWLISHUIRUPHGZLWKLQWKHVSHFLILHGWLPHIUDPHHJZLWKLQGD\VSULRUWR&\FOH'D\,IODERUDWRU\WHVWVDWVFUHHQLQJ
DUHQRWSHUIRUPHGZLWKLQGD\VSULRUWRWKHDGPLQLVWUDWLRQRIVWXG\GUXJVRQ&\FOH'D\FKHPLVWU\KHPDWRORJ\DQGFRDJXODWLRQWHVWVVKRXOGEH
UHSHDWHGDQGUHYLHZHGSULRUWRWUHDWPHQWDXWKRUL]DWLRQ
 7KH(QGRI7UHDWPHQW(27YLVLWLVGHILQHGDVWKHGD\RQZKLFKWKHLQYHVWLJDWRUGHWHUPLQHVWKDW%*%$ZLOOQRORQJHUEHXVHG,IURXWLQHODERUDWRU\
WHVWVHJKHPDWRORJ\VHUXPFKHPLVWU\DQGDOSKDIHWRSURWHLQDUHFRPSOHWHGZLWKLQGD\VEHIRUHWKH(279LVLWUHSHDWWHVWVDUHQRWUHTXLUHGFRDJXODWLRQ
DQGXULQDO\VLVVKRXOGEHFRQGXFWHGDWWKH(27YLVLWRQO\LIFOLQLFDOO\LQGLFDWHG7XPRUDVVHVVPHQWGRHVQRWQHHGWREHUHSHDWHGDWWKH(27YLVLWLIWKHWLPH
LQWHUYDOIURPWKHODVWDVVHVVPHQWLVZHHNV
 7KHPDQGDWRU\6DIHW\)ROORZ8SYLVLWVKRXOGEHFRQGXFWHGGD\VGD\VDIWHUWKHODVWGRVHRIVWXG\WKHUDS\RUEHIRUHWKHLQLWLDWLRQRIDQHZWUHDWPHQW
ZKLFKHYHUFRPHVILUVW3DWLHQWVZKRDUHGLVFRQWLQXHGIURPWKHVWXG\GXHWRDQXQDFFHSWDEOHGUXJUHODWHG$(ZLOOEHIROORZHGXQWLOWKHUHVROXWLRQRIWKH$(
WR*UDGHRUVWDELOL]DWLRQRUXQWLOEHJLQQLQJRIDQHZWKHUDS\IRUWKHLUFDQFHUZKLFKHYHURFFXUVILUVW)ROORZXSIRUDQLU$(ZLOORFFXUXQWLOGD\VDIWHU
WUHDWPHQWGLVFRQWLQXDWLRQUHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\
 6XUYLYDO)ROORZXSLQIRUPDWLRQZLOOEHFROOHFWHGYLDWHOHSKRQHFDOOVSDWLHQWPHGLFDOUHFRUGVDQGRUFOLQLFYLVLWVDSSUR[LPDWHO\HYHU\PRQWKVGD\V
DIWHUWKH6DIHW\)ROORZXS9LVLWXQWLOGHDWKORVVWRIROORZXSZLWKGUDZDORIFRQVHQWRUVWXG\WHUPLQDWLRQE\VSRQVRUZKLFKHYHURFFXUVILUVW$OOSDWLHQWV
ZLOOEHIROORZHGIRUVXUYLYDODQGVXEVHTXHQWDQWLFDQFHUWKHUDS\LQIRUPDWLRQXQOHVVDSDWLHQWUHTXHVWVWREHZLWKGUDZQIURPIROORZXS,QIRUPDWLRQRQLU$(V
ZLOOEHFROOHFWHGXSXQWLOGD\VDIWHUWKHODVWGRVHRI%*%$UHJDUGOHVVRIZKHWKHURUQRWDSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\
 ,QFOXGHVKLVWRU\RIWUHDWPHQWIRUWKHSULPDU\GLDJQRVLVLQFOXGLQJSULRUV\VWHPLFUDGLDWLRQWUHDWPHQWDQGVXUJLFDOWUHDWPHQW'DWHRIODVWSULRUFDQFHU
WUHDWPHQWPXVWEHGRFXPHQWHG5DGLRJUDSKLFVWXGLHVSHUIRUPHGSULRUWRVWXG\HQWU\PD\EHFROOHFWHGIRUUHYLHZE\WKHLQYHVWLJDWRU2WKHUFRQFXUUHQW
FRQGLWLRQVVKRXOGEHUHSRUWHGDVZHOO&RPSOHWHPHGLFDWLRQKLVWRU\IRUGD\VEHIRUHWKHILUVWGRVH&'RIVWXG\PHGLFDWLRQQHHGVWREHUHSRUWHG
 9LWDOVLJQVWRLQFOXGHWHPSHUDWXUHSXOVHDQGEORRGSUHVVXUHVHH6HFWLRQIRUDGGLWLRQDOLQVWUXFWLRQV
 6XEVHTXHQW(&*VDUHUHTXLUHGRQO\IRUSDWLHQWVZLWKFOLQLFDOO\VLJQLILFDQWILQGLQJVGXULQJVFUHHQLQJ
 $GYHUVHH[SHULHQFHVDQGODERUDWRU\VDIHW\PHDVXUHPHQWVZLOOEHJUDGHGSHU1&,&7&$(Y$OODGYHUVHH[SHULHQFHVZKHWKHUJUDGDEOHE\&7&$(RU
QRWZLOODOVREHHYDOXDWHGIRUVHULRXVQHVVVHH6HFWLRQ$IWHUWKHLQIRUPHGFRQVHQWIRUPKDVEHHQVLJQHGEXWSULRUWRWKHDGPLQLVWUDWLRQRIVWXG\GUXJ
RQO\6$(VVKRXOGEHUHSRUWHG$IWHUWKHILUVWGRVHRIVWXG\GUXJDOO$(VDQG6$(VUHJDUGOHVVRIWKHLUDVVHVVHGUHODWLRQVKLSWRVWXG\GUXJDUHWREHUHSRUWHG
XQWLOHLWKHUGD\VDIWHUWKHODVWGRVHRI%*%$RUWKHLQLWLDWLRQRIQHZDQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVW$OOLU$(VZLOOEHUHSRUWHGIRU
GD\VDIWHUWKHODVWGRVHRI%*%$UHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\7KHLQYHVWLJDWRUVKRXOGUHSRUWDQ\6$(VWKDW
DUHDVVHVVHGDVUHODWHGWR%*%$WUHDWPHQWDWDQ\WLPHDIWHUWUHDWPHQWGLVFRQWLQXDWLRQ
 /RFDORUFHQWUDOODERUDWRU\DVVHVVPHQWVRQVHUXPFKHPLVWU\KHPDWRORJ\FRDJXODWLRQDQGXULQDO\VLVZLOOEHFRQGXFWHGRIZKLFKFHUWDLQHOHPHQWVZLOOEH
FROOHFWHGDVVSHFLILHGLQ$SSHQGL[,IODERUDWRU\WHVWVDWVFUHHQLQJDUHQRWSHUIRUPHGZLWKLQGD\VSULRUWRWKHDGPLQLVWUDWLRQRIVWXG\GUXJRQ&\FOH
'D\FKHPLVWU\KHPDWRORJ\DQGFRDJXODWLRQWHVWVVKRXOGEHUHSHDWHGDQGUHYLHZHGSULRUWRWUHDWPHQWDXWKRUL]DWLRQ+HPDWRORJ\DQGVHUXPFKHPLVWU\
LQFOXGLQJOLYHUIXQFWLRQWHVWVVSHFLILHGLQ$SSHQGL[ZLOOEHSHUIRUPHGZHHNO\IRUWKHILUVWF\FOHVDQGWKHQDWWKHEHJLQQLQJRIVXEVHTXHQWF\FOHV7KHVH
WHVWVPD\EHFRQGXFWHGLQORFDOODERUDWRULHV$IWHU&\FOHUHVXOWVDUHWREHUHYLHZHGZLWKLQGD\VEHIRUHVWXG\GUXJDGPLQLVWUDWLRQ&RDJXODWLRQDQG
XULQDO\VLVDUHWREHFRQGXFWHGGXULQJWKHWUHDWPHQWSHULRGRQO\LIFOLQLFDOO\ZDUUDQWHG5HIHUWR6HFWLRQIRUDGGLWLRQDOLQIRUPDWLRQUHJDUGLQJFOLQLFDO
DVVHVVPHQWDQGPDQDJHPHQWRIFOLQLFDOODERUDWRU\DEQRUPDOLWLHV
 ,QFOXGHV,QWHUQDWLRQDO1RUPDOL]HG5DWLR3URWKURPELQ7LPHDQG$FWLYDWHG3DUWLDO7KURPERSODVWLQ7LPHDQDO\]HGE\WKHORFDORUFHQWUDOODERUDWRU\
&RDJXODWLRQLVWREHFRQGXFWHGGXULQJWKHWUHDWPHQWSHULRGRQO\LIFOLQLFDOO\LQGLFDWHG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 2QO\LQZRPHQRIFKLOGEHDULQJSRWHQWLDO3DWLHQWVPXVWKDYHDQHJDWLYHSUHJQDQF\WHVWVHUXPRUXULQHZLWKLQGD\VEHIRUHWKHILUVWLQYHVWLJDWLRQDOSURGXFW
DGPLQLVWUDWLRQ,IWKHVFUHHQLQJXULQHSUHJQDQF\WHVWKDVQRWEHHQGRQHZLWKLQGD\VRIILUVWGRVHLWZRXOGQHHGWREHUHSHDWHGDW&\FOH'D\SULRUWR
GRVLQJ$XULQHSUHJQDQF\WHVWVKRXOGEHSHUIRUPHGDWHDFKVXEVHTXHQWYLVLW$EORRGWHVWVKRXOGEHSHUIRUPHGWRFRQILUPDQHTXLYRFDORUSRVLWLYHXULQH
SUHJQDQF\WHVW
 $QDO\VLVRIIUHH7IUHH7DQG76+ZLOOEHSHUIRUPHGE\WKHORFDORUFHQWUDOODERUDWRU\7K\URLGIXQFWLRQWHVWVZLOOEHSHUIRUPHGDWVFUHHQLQJDQGHYHU\
F\FOHVLH'D\RI&\FOHVHWFDQGDWWKHPDQGDWRU\6DIHW\)ROORZ8S9LVLW
 %ORRGXVHGWRWHVWIRUDQWL%*%$DQWLERGLHVVKRXOGEHFROOHFWHGZLWKLQPLQXWHVEHIRUHEHJLQQLQJWKH'D\LQIXVLRQRI&\FOHVDQGDQG
DWWKHPDQGDWRU\6DIHW\)ROORZ8S9LVLW$OOVDPSOHVVKRXOGEHGUDZQDWWKHVDPHWLPHDVEORRGFROOHFWLRQIRUSUHGRVH3.DQDO\VLV7KHVHWHVWVDUH
UHTXLUHGZKHQLWLVDOORZHGE\ORFDOUHJXODWLRQV,5%V,(&V
 6DPSOHVIRU3.DQDO\VLVZLOOEHFROOHFWHGRQO\DWVLWHVWKDWDUHDEOHWRDGHTXDWHO\IROORZWKHVDPSOLQJKDQGOLQJDQGSURFHVVLQJSURFHGXUHVGHVFULEHGLQWKH
ODEPDQXDO3UHGRVHZLWKLQPLQXWHVEHIRUHVWDUWLQJLQIXVLRQDUHUHTXLUHGWREHFROOHFWHGRQ'D\RI&\FOHV$QG7ZRSRVWGRVHVDPSOHV
ZLWKLQPLQXWHVDIWHUFRPSOHWLQJ%*%$LQIXVLRQDUHUHTXLUHGWREHFROOHFWHGRQ'D\RI&\FOHVDQG$QDGGLWLRQDO3.VDPSOHLVUHTXLUHGWREH
FROOHFWHGDWWKHPDQGDWRU\6DIHW\)ROORZ8S9LVLW6KRXOGDSDWLHQWSUHVHQWZLWKD*UDGHLU$(UHIHUWR6HFWLRQDGGLWLRQDOEORRG3.VDPSOHVZLOO
EHWDNHQWRGHWHUPLQHWKHVHUXPFRQFHQWUDWLRQRI%*%$7KHVHWHVWVDUHUHTXLUHGZKHQLWLVDOORZHGE\ORFDOUHJXODWLRQV,5%V,(&V
 3DWLHQWVZKRDUHVXVSHFWHGRUNQRZQWRKDYHVHULRXVVHYHUHUHVSLUDWRU\FRQGLWLRQVRUH[KLELWVLJQLILFDQWUHVSLUDWRU\V\PSWRPVXQUHODWHGWRWKHXQGHUO\LQJ
FDQFHUZLOOXQGHUJRSXOPRQDU\IXQFWLRQWHVWLQJZKLFKPD\LQFOXGHEXWLVQRWOLPLWHGWRVSLURPHWU\DQGDVVHVVPHQWRIGLIIXVLRQFDSDFLW\GRQHGXULQJWKH
VFUHHQLQJSHULRGWRDVVLVWWKHGHWHUPLQDWLRQRIVXLWDELOLW\RQWKHVWXG\5HVXOWVRISXOPRQDU\IXQFWLRQWHVWLQJVKRXOGEHUHYLHZHGSULRUWRWUHDWPHQW
DXWKRUL]DWLRQ
 7HVWLQJZLOOEHSHUIRUPHGE\WKHORFDOFHQWUDOODERUDWRU\DWVFUHHQLQJDQGLQFOXGH+%9+&9VHURORJ\+%V$J+%V$E+%F$EDQG+&9DQWLERG\DQG
YLUDOORDGDVVHVVPHQW+%9'1$DQG+&951$3DWLHQWVZKRKDYHGHWHFWDEOH+%9'1$RU+&951$DWVFUHHQLQJZLOOSHUIRUPWKHUHVSHFWLYHYLUDO
ORDGWHVWHYHU\F\FOHVLH'D\RI&\FOHHWF
 7XPRULPDJLQJZLOOEHSHUIRUPHGZLWKLQGD\VSULRUWRWKHILUVWVWXG\WUHDWPHQWUHVXOWVRIVWDQGDUGRIFDUHWHVWVRUH[DPLQDWLRQVSHUIRUPHGSULRUWR
REWDLQLQJLQIRUPHGFRQVHQWDQGİGD\VSULRUWRVWXG\GUXJDGPLQLVWUDWLRQPD\EHXVHGIRUWKHSXUSRVHVRIVFUHHQLQJ'XULQJWKHVWXG\WXPRULPDJLQJ
ZLOOEHSHUIRUPHGDSSUR[LPDWHO\HYHU\ZHHNVGD\VLQWKHILUVWZHHNVDQGHYHU\ZHHNVGD\VWKHUHDIWHU7KHVDPHLPDJLQJWHFKQLTXH
VKRXOGEHXVHGLQDSDWLHQWWKURXJKRXWWKHVWXG\$IWHUILUVWGRFXPHQWDWLRQRIUHVSRQVH&5RU35FRQILUPDWLRQRIWXPRUUHVSRQVHVKRXOGRFFXUDWZHHNV
RUODWHUZHHNVDIWHUWKHILUVWUHVSRQVHRUDWWKHQH[WVFKHGXOHGDVVHVVPHQWWLPHSRLQW3URJUHVVLYHGLVHDVHVXVSHFWHGDVSVHXGRSURJUHVVLRQQHHGVWREH
FRQILUPHGLQDVXEVHTXHQWLPDJLQJDWOHDVWZHHNVODWHUEXWQRWH[FHHGLQJZHHNVIURPWKHGDWHRILQLWLDOGRFXPHQWDWLRQRI3'3DWLHQWVZKR
GLVFRQWLQXHVWXG\WUHDWPHQWHDUO\IRUUHDVRQVRWKHUWKDQGLVHDVHSURJUHVVLRQHJWR[LFLW\ZLOOFRQWLQXHWRXQGHUJRWXPRUDVVHVVPHQWVIROORZLQJWKHRULJLQDO
SODQXQWLOWKHSDWLHQWEHJLQVDVXEVHTXHQWDQWLFDQFHUWUHDWPHQWH[SHULHQFHVGLVHDVHSURJUHVVLRQZLWKGUDZVFRQVHQWGLHVRUXQWLOWKHVWXG\WHUPLQDWHV
ZKLFKHYHURFFXUVILUVW7XPRUDVVHVVPHQWVDUHUHTXLUHGWREHSHUIRUPHGRQVFKHGXOHUHJDUGOHVVRIZKHWKHUVWXG\WUHDWPHQWKDVEHHQDGPLQLVWHUHGRUKHOG
6HH6HFWLRQIRUGHWDLOHGLQIRUPDWLRQUHJDUGLQJWXPRUHYDOXDWLRQ
 %RQHVFDQVDWEDVHOLQHRUVXEVHTXHQWYLVLWVZLOOEHSHUIRUPHGRQO\LIFOLQLFDOO\LQGLFDWHG
 $QDUFKLYDOWXPRUVDPSOHLIDYDLODEOHLVUHTXLUHGWREHFROOHFWHGIRUWKHSXUSRVHRIELRPDUNHUDQDO\VLVVXFKDV3'/H[SUHVVLRQDQGJHQHH[SUHVVLRQ
SURILOLQJ6SHFLILFLQVWUXFWLRQVIRUWLVVXHFROOHFWLRQDQGVKLSPHQWDUHSURYLGHGLQWKH/DE0DQXDO


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
 &ROOHFWLRQRIDIUHVKWXPRUELRSV\DWEDVHOLQHZLOOEHRSWLRQDOIRUELRPDUNHUDQDO\VLVLIDFFHVVLEOHDQGDSSURSULDWH3OHDVHUHIHUWR6HFWLRQIRUELRSV\
UHTXLUHPHQWV:ULWWHQSDWLHQWFRQVHQWLVUHTXLUHGIRUIUHVKWXPRUELRSVLHV)UHVKELRSVLHVVKRXOGEHOLPLWHGWRUHDGLO\DFFHVVLEOHWXPRUOHVLRQVHJVNLQ
SHULSKHUDOO\PSKQRGHVOXQJOLYHURULQWHUQDOO\PSKQRGHPHWDVWDVHVZKLFKFDQEHUHDGLO\DFFHVVHGXVLQJ&7JXLGDQFH,ISHUIRUPHGDFRUHRUH[FLVLRQDO
ELRSV\RIWKHWXPRUF\WRORJLFRUILQHQHHGOHDVSLUDWLRQVDPSOHVDUHQRWDFFHSWDEOHVKRXOGEHREWDLQHGWKDWKDVSURSHUVL]HIRUKLVWRORJLFDOH[DPLQDWLRQDQG
ELRPDUNHUDQDO\VLV
 7REHFRPSOHWHGSULRUWRDQ\FOLQLFDODFWLYLWLHVGXULQJRQVWXG\VLWHYLVLWV7KHVHDVVHVVPHQWVZLOOEHFRPSOHWHGDWVFUHHQLQJDQGRUEDVHOLQHWKHQHYHU\
RWKHUF\FOHZHHNVVWDUWLQJIURP&\FOHXQWLO:HHN&\FOHDQGVXEVHTXHQWO\HYHU\ZHHNV
 (\HH[DPYLVXDODFXLW\WHVWDQGRSWLFDOFRKHUHQFHWRPRJUDSK\RUHTXLYDOHQWGLDJQRVWLFWHVWIRUUHWLQDOH[DPLQDWLRQFDSWXUHGDVVWDQGDUGRIFDUHSULRUWR
REWDLQLQJZULWWHQLQIRUPHGFRQVHQWDQGZLWKLQGD\VRIILUVWVWXG\GUXJDGPLQLVWUDWLRQPD\EHXVHGUDWKHUWKDQUHSHDWLQJWHVWV(\HH[DPYLVXDODFXLW\
WHVWDQGRSWLFDOFRKHUHQFHWRPRJUDSK\RUHTXLYDOHQWGLDJQRVWLFWHVWZLOOEHDVVHVVHGDWWKH6FUHHQLQJ9LVLW3DWLHQWVZLOOXQGHUJRUHSHDWDVVHVVPHQWV
DSSUR[LPDWHO\HYHU\ZHHNVGD\V
 7KHRSKWKDOPRORJLFDVVHVVPHQWVLQFOXGLQJH\HH[DPYLVXDODFXLW\WHVWDQGRSWLFDOFRKHUHQFHWRPRJUDSK\RUHTXLYDOHQWGLDJQRVWLFWHVWVKRXOGRQO\EH
SHUIRUPHGRQFHDWHLWKHUWKH(27RUGXULQJVDIHW\IROORZXSZLWKLQGD\VRIVWXG\WUHDWPHQWHQG
 ,QYHVWLJDWRUVVKRXOGVROLFLWSDWLHQWVUHJDUGLQJFKDQJHVLQYLVLRQYLVXDOGLVWXUEDQFHRURFXODULQIODPPDWLRQDWHDFKVFKHGXOHGVWXG\YLVLWGXULQJ%*%$
WUHDWPHQW)RUDQ\FKDQJHLQYLVLRQUHIHUUDOWRDQDSSURSULDWHVSHFLDOLVWZLOOEHPDGHIRUIXUWKHUPDQDJHPHQWJXLGDQFH
 5HYLHZRI$(VDQGFRQFRPLWDQWPHGLFDWLRQVPD\EHFRQGXFWHGE\WHOHSKRQHRQ'D\VDQG
 $OO&KLOG3XJKFODVVLILFDWLRQ$SSHQGL[HYDOXDWLRQVPXVWEHSHUIRUPHGZLWKLQGD\VRIILUVWVWXG\GUXJDGPLQLVWUDWLRQ



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
&+,/'38*+&/$66,),&$7,216&25,1*6<67(0
7KHLQIRUPDWLRQSUHVHQWHGKHUHKDVEHHQREWDLQHGIURPWKH:DVKLQJWRQ8QLYHUVLW\0HGLFDO&HQWHUZLWK
VRXUFHVDVIROORZV/XFH\HWDO3XJKHWDO7UH\HWDO
&KLOG3XJKFODVVLILFDWLRQLVHLWKHU*UDGH$PLOGVFRUHWRSRLQWV%PRGHUDWHIURPWRSRLQWVRU&
VHYHUHIURPWRSRLQWVDQGLVGHWHUPLQHGE\ERWKFOLQLFDODQGELRFKHPLFDOSDUDPHWHUVDVVKRZQ
EHORZ
&OLQLFDO%LRFKHPLFDO3DUDPHWHU
6FRUH$QRPDO\6HYHULW\



+HSDWLFHQFHSKDORSDWK\1&,&7&$(JUDGHD
E
FRUG
HRUI
$VFLWHVSUHVHQFHDQGVHYHULW\
1RQH
0LOG
0RGHUDWH
7RWDOELOLUXELQPJG/

WR
!
6HUXPDOEXPLQJG/
!
WR

3URORQJHGSURWKURPELQWLPHVHFRQGV
RU
3URWKURPELQWLPH,15J

RU

WR
RU
WR
!
RU
!
D 7UH\&%XUQV'*DQG6DXQGHUV6-7UHDWPHQWRIKHSDWLFFRPDE\H[FKDQJHEORRGWUDQVIXVLRQ
1(QJO-0HG
E *UDGH&RQVFLRXVQHVVSHUVRQDOLW\QHXURORJLFDOH[DPLQDWLRQDQGHOHFWURFDUGLRJUDPDUHDOOQRUPDO
F *UDGH5HVWOHVVQHVVVOHHSGLVRUGHUVLUULWDELOLW\DQ[LHW\KDQGWUHPRUZULWLQJGLVRUGHUV&36ZDYHV
G *UDGH/HWKDUJ\WLPHEDUULHUGLVFRPIRUWDVWHUL[LVDWD[LDWKUHHSKDVHVORZZDYH
H *UDGH'URZVLQHVVFRPDRULHQWDWLRQGLVRUGHURYHUUHIOHFWLRQVWLIIVORZZDYH
I *UDGH&DQQRWZDNHXSIURPFRPDQRLQGHSHQGHQWSHUVRQDOLW\EHKDYLRULUUDWLRQDOVORZ&36'HOWD
DFWLYLW\
J /XFH\05%URZQ.$(YHUVRQ*7)XQJ--*LVK5.HHIIH(%HWDO0LQLPDOFULWHULDIRUSODFHPHQW
RIDGXOWVRQWKHOLYHUWUDQVSODQWZDLWLQJOLVW/LYHU7UDQVSO6XUJ

$EEUHYLDWLRQV,15 ,QWHUQDWLRQDO1RUPDOL]HG5DWLR1&,&7&$( 1DWLRQDO&DQFHU,QVWLWXWH&RPPRQ
7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV&36 &\FOHV3HU6HFRQG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
(&2*3(5)250$1&(67$786
*UDGH
'HVFULSWLRQ

)XOO\DFWLYHDEOHWRFDUU\RQDOOSUHGLVHDVHSHUIRUPDQFHZLWKRXWUHVWULFWLRQ

5HVWULFWHGLQSK\VLFDOO\VWUHQXRXVDFWLYLW\EXWDPEXODWRU\DQGDEOHWRFDUU\RXWZRUNRID
OLJKWRUVHGHQWDU\QDWXUHHJOLJKWKRXVHZRUNRIILFHZRUN

$PEXODWRU\DQGFDSDEOHRIDOOVHOIFDUHEXWXQDEOHWRFDUU\RXWDQ\ZRUNDFWLYLWLHV8SDQG
DERXWPRUHWKDQRIZDNLQJKRXUV

&DSDEOHRIRQO\OLPLWHGVHOIFDUHFRQILQHGWREHGRUFKDLUPRUHWKDQRIZDNLQJKRXUV

&RPSOHWHO\GLVDEOHG&DQQRWFDUU\RQDQ\VHOIFDUH7RWDOO\FRQILQHGWREHGRUFKDLU

'HDG
$VSXEOLVKHGE\2NHQHWDO(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS5REHUW&RPLV0'*URXS
&KDLU



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
&/,1,&$//$%25$725<$66(660(176
6HUXP&KHPLVWU\
+HPDWRORJ\
&RDJXODWLRQ
8ULQDO\VLV
$ONDOLQHSKRVSKDWDVH
$ODQLQHDPLQRWUDQVIHUDVH
$VSDUWDWH
DPLQRWUDQVIHUDVH
$OEXPLQ
'LUHFWELOLUXELQ
7RWDOELOLUXELQ
%ORRGXUHDQLWURJHQRU
XUHD
&UHDWLQLQH
*OXFRVH
/DFWDWHGHK\GURJHQDVH
7RWDOSURWHLQ
3RWDVVLXP
6RGLXP
&UHDWLQHNLQDVH
&UHDWLQHNLQDVHFDUGLDF
PXVFOHLVRHQ]\PH
&.0%
+HPDWRFULW
+HPRJORELQ
3ODWHOHWFRXQW
:%&FRXQW
1HXWURSKLOFRXQW
/\PSKRF\WHFRXQW


3URWKURPELQWLPH
$FWLYDWHG3DUWLDO
7KURPERSODVWLQ7LPH
,QWHUQDWLRQDO1RUPDOL]HG
5DWLR
*OXFRVH
3URWHLQ
.HWRQHV
%ORRG
KRXU
SURWHLQ
5DQGRPXULQH
SURWHLQWR
FUHDWLQLQHUDWLR
$EEUHYLDWLRQV:%&ZKLWHEORRGFHOO
1RWH$GGLWLRQDOODERUDWRU\DVVHVVPHQWVPD\EHFRQGXFWHGLIUHTXLUHGIRUFOLQLFDOPDQDJHPHQWUHOHYDQWGDWD
IURPWKRVHDVVHVVPHQWVZLOOEHFROOHFWHGE\WKHVSRQVRU
 2QURXWLQHXULQDO\VLVLIXULQHSURWHLQLVE\GLSVWLFNWKHQREWDLQDKRXUXULQHVDPSOHIRUWRWDO
SURWHLQDQGDUDQGRPXULQHVDPSOHIRUWRWDOSURWHLQDQGFUHDWLQLQHWRGHWHUPLQHDSURWHLQWRFUHDWLQLQH
UDWLR
 ,QWKHHYHQW&.0%IUDFWLRQDWLRQLVQRWDYDLODEOHSOHDVHDVVHVVWURSRQLQ,DQGRUWURSRQLQ7LQVWHDG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
7+(5(63216((9$/8$7,21&5,7(5,$,162/,'7802565(&,67
*8,'(/,1(69(56,21
7KHWH[WEHORZZDVREWDLQHGIURP(LVHQKDXHUHWDO
'(),1,7,216
5HVSRQVHDQGSURJUHVVLRQZLOOEHHYDOXDWHGLQWKLVWULDOXVLQJWKHLQWHUQDWLRQDOFULWHULDSURSRVHGE\WKH
5HVSRQVH(YDOXDWLRQ&ULWHULDLQ6ROLG7XPRUV5(&,67&RPPLWWHHY&KDQJHVLQRQO\WKHODUJHVW
GLDPHWHUXQLGLPHQVLRQDOPHDVXUHPHQWRIWKHWXPRUOHVLRQVDUHXVHGLQWKH5(&,67FULWHULD

1RWH/HVLRQVDUHHLWKHUPHDVXUDEOHRUQRQPHDVXUDEOHXVLQJWKHFULWHULDSURYLGHGEHORZ7KHWHUP
³HYDOXDEOH´LQUHIHUHQFHWRPHDVXUDELOLW\ZLOOQRWEHXVHGEHFDXVHLWGRHVQRWSURYLGHDGGLWLRQDOPHDQLQJRU
DFFXUDF\
0HDVXUDEOH'LVHDVH
7XPRUOHVLRQV0XVWEHDFFXUDWHO\PHDVXUHGLQDWOHDVWGLPHQVLRQORQJHVWGLDPHWHULQWKHSODQHRI
PHDVXUHPHQWLVWREHUHFRUGHGZLWKDPLQLPXPVL]HRI
x
PPE\&7VFDQLUUHVSHFWLYHRIVFDQQHUW\SHDQG05,QROHVVWKDQGRXEOHWKHVOLFHWKLFNQHVVDQGD
PLQLPXPRIPP
x
PPFDOLSHUPHDVXUHPHQWE\FOLQLFDOH[DPZKHQVXSHUILFLDO
x
PPE\FKHVW;UD\LIFOHDUO\GHILQHGDQGVXUURXQGHGE\DHUDWHGOXQJ
0DOLJQDQWO\PSKQRGHV7REHFRQVLGHUHGSDWKRORJLFDOO\HQODUJHGDQGPHDVXUDEOHDO\PSKQRGHPXVWEH
PPLQVKRUWD[LVZKHQDVVHVVHGE\&7VFDQ&7VFDQVOLFHWKLFNQHVVUHFRPPHQGHGWREHQRJUHDWHU
WKDQPP$WEDVHOLQHDQGLQIROORZXSRQO\WKHVKRUWD[LVZLOOEHPHDVXUHGDQGIROORZHG
1RQPHDVXUDEOH'LVHDVH
$OORWKHUOHVLRQVRUVLWHVRIGLVHDVHLQFOXGLQJVPDOOOHVLRQVORQJHVWGLDPHWHUWRPPZLWK
FRQYHQWLRQDOWHFKQLTXHVRUPPXVLQJVSLUDO&7VFDQDUHFRQVLGHUHGQRQPHDVXUDEOHGLVHDVH
/HSWRPHQLQJHDOGLVHDVHDVFLWHVSOHXUDORUSHULFDUGLDOHIIXVLRQLQIODPPDWRU\EUHDVWGLVHDVHO\PSKDQJLWLF
LQYROYHPHQWRIVNLQRUOXQJDEGRPLQDOPDVVHVDEGRPLQDORUJDQRPHJDO\LGHQWLILHGE\SK\VLFDOH[DPLQDWLRQ
WKDWLVQRWPHDVXUDEOHE\UHSURGXFLEOHLPDJLQJWHFKQLTXHVDUHDOOQRQPHDVXUDEOH
%RQHOHVLRQV
x
%RQHVFDQ3(7VFDQRUSODLQILOPVDUHQRWFRQVLGHUHGDGHTXDWHLPDJLQJWHFKQLTXHVWRPHDVXUHERQH
OHVLRQV+RZHYHUWKHVHWHFKQLTXHVFDQEHXVHGWRFRQILUPWKHSUHVHQFHRUGLVDSSHDUDQFHRIERQH
OHVLRQV
x
/\WLFERQHOHVLRQVRUPL[HGO\WLFEODVWLFOHVLRQVZLWKLGHQWLILDEOHVRIWWLVVXHFRPSRQHQWVWKDWFDQEH
HYDOXDWHGE\FURVVVHFWLRQDOLPDJLQJWHFKQLTXHVVXFKDV&7RU05,FDQEHFRQVLGHUHGDVPHDVXUDEOH
OHVLRQVLIWKHVRIWWLVVXHFRPSRQHQWPHHWVWKHGHILQLWLRQRIPHDVXUDELOLW\GHVFULEHGDERYH
x
%ODVWLFERQHOHVLRQVDUHQRQPHDVXUDEOH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
&\VWLFOHVLRQV
x
/HVLRQVWKDWPHHWWKHFULWHULDIRUUDGLRJUDSKLFDOO\GHILQHGVLPSOHF\VWVVKRXOGQRWEHFRQVLGHUHGDV
PDOLJQDQWOHVLRQVQHLWKHUPHDVXUDEOHQRUQRQPHDVXUDEOHVLQFHWKH\DUHE\GHILQLWLRQVLPSOHF\VWV
x
&\VWLFOHVLRQVWKRXJKWWRUHSUHVHQWF\VWLFPHWDVWDVHVFDQEHFRQVLGHUHGDVPHDVXUDEOHOHVLRQVLIWKH\
PHHWWKHGHILQLWLRQRIPHDVXUDELOLW\GHVFULEHGDERYH+RZHYHULIQRQF\VWLFOHVLRQVDUHSUHVHQWLQWKH
VDPHSDWLHQWWKHVHDUHSUHIHUUHGIRUVHOHFWLRQDVWDUJHWOHVLRQV
/HVLRQVZLWKSULRUORFDOWUHDWPHQW
x
7XPRUOHVLRQVVLWXDWHGLQDSUHYLRXVO\LUUDGLDWHGDUHDRULQDQDUHDSDWLHQWHGWRRWKHUORFRUHJLRQDO
WKHUDS\DUHXVXDOO\QRWFRQVLGHUHGPHDVXUDEOHXQOHVVWKHUHKDVEHHQGHPRQVWUDWHGSURJUHVVLRQLQWKH
OHVLRQ7ULDOSURWRFROVVKRXOGGHWDLOWKHFRQGLWLRQVXQGHUZKLFKVXFKOHVLRQVZRXOGEHFRQVLGHUHG
PHDVXUDEOH
7DUJHW/HVLRQV
$OOPHDVXUDEOHOHVLRQVXSWRDPD[LPXPRIOHVLRQVSHURUJDQDQGOHVLRQVLQWRWDOVKRXOGEHLGHQWLILHGDV
WDUJHWOHVLRQVDQGUHFRUGHGDQGPHDVXUHGDWEDVHOLQH7DUJHWOHVLRQVVKRXOGEHVHOHFWHGRQWKHEDVLVRIWKHLU
VL]HOHVLRQVZLWKWKHORQJHVWGLDPHWHUEHUHSUHVHQWDWLYHRIDOOLQYROYHGRUJDQEXWLQDGGLWLRQVKRXOGEH
WKRVHWKDWOHQGWKHPVHOYHVWRUHSURGXFLEOHUHSHDWHGPHDVXUHPHQWV
/\PSKQRGHVPHULWVSHFLDOPHQWLRQVLQFHWKH\DUHQRUPDODQDWRPLFDOVWUXFWXUHVZKLFKPD\EHYLVLEOHE\
LPDJLQJHYHQLIQRWLQYROYHGE\WXPRU3DWKRORJLFDOQRGHVZKLFKDUHGHILQHGDVPHDVXUDEOHDQGPD\EH
LGHQWLILHGDVWDUJHWOHVLRQVPXVWPHHWWKHFULWHULRQRIDVKRUWD[LVRIPPE\&7VFDQ2QO\WKHVKRUW
D[LVRIWKHVHQRGHVZLOOFRQWULEXWHWRWKHEDVHOLQHVXP7KHVKRUWD[LVRIWKHQRGHLVWKHGLDPHWHUQRUPDOO\
XVHGE\UDGLRORJLVWVWRMXGJHLIDQRGHLVLQYROYHGE\VROLGWXPRU1RGDOVL]HLVQRUPDOO\UHSRUWHGDV
GLPHQVLRQVLQWKHSODQHLQZKLFKWKHLPDJHLVREWDLQHGIRU&7VFDQWKLVLVDOPRVWDOZD\VWKHD[LDOSODQH
IRU05,WKHSODQHRIDFTXLVLWLRQPD\EHD[LDOVDJJLWDORUFRURQDO7KHVPDOOHURIWKHVHPHDVXUHVLVWKH
VKRUWD[LV)RUH[DPSOHDQDEGRPLQDOQRGHZKLFKLVUHSRUWHGDVEHLQJPPîPPKDVDVKRUWD[LVRI
PPDQGTXDOLILHVDVDPDOLJQDQWPHDVXUDEOHQRGH,QWKLVH[DPSOHPPVKRXOGEHUHFRUGHGDVWKH
QRGHPHDVXUHPHQW$OORWKHUSDWKRORJLFDOQRGHVWKRVHZLWKVKRUWD[LVPPEXWPPVKRXOGEH
FRQVLGHUHGQRQWDUJHWOHVLRQV1RGHVWKDWKDYHDVKRUWD[LVPPDUHFRQVLGHUHGQRQSDWKRORJLFDODQG
VKRXOGQRWEHUHFRUGHGRUIROORZHG
$VXPRIWKHGLDPHWHUVORQJHVWIRUQRQQRGDOOHVLRQVVKRUWD[LVIRUQRGDOOHVLRQVIRUDOOWDUJHWOHVLRQVZLOO
EHFDOFXODWHGDQGUHSRUWHGDVWKHEDVHOLQHVXPGLDPHWHUV,IO\PSKQRGHVDUHWREHLQFOXGHGLQWKHVXPWKHQ
DVQRWHGDERYHRQO\WKHVKRUWD[LVLVDGGHGLQWRWKHVXP7KHEDVHOLQHVXPGLDPHWHUVZLOOEHXVHGDV
UHIHUHQFHWRIXUWKHUFKDUDFWHUL]HDQ\REMHFWLYHWXPRUUHJUHVVLRQLQWKHPHDVXUDEOHGLPHQVLRQRIWKHGLVHDVH
1RQWDUJHW/HVLRQV
$OORWKHUOHVLRQVRUVLWHVRIGLVHDVHLQFOXGLQJSDWKRORJLFDOO\PSKQRGHVVKRXOGEHLGHQWLILHGDVQRQWDUJHW
OHVLRQVDQGVKRXOGDOVREHUHFRUGHGDWEDVHOLQH0HDVXUHPHQWVDUHQRWUHTXLUHGDQGWKHVHOHVLRQVVKRXOGEH
IROORZHGDV³SUHVHQW´³DEVHQW´RULQUDUHFDVHV³XQHTXLYRFDOSURJUHVVLRQ´PRUHGHWDLOVWRIROORZ,Q
DGGLWLRQLWLVSRVVLEOHWRUHFRUGPXOWLSOHQRQWDUJHWOHVLRQVLQYROYLQJWKHVDPHRUJDQDVDVLQJOHLWHPRQWKH
FDVHUHFRUGIRUPHJ³PXOWLSOHHQODUJHGSHOYLFO\PSKQRGH´RU³PXOWLSOHOLYHUPHWDVWDVHV´


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
*8,'(/,1(6)25(9$/8$7,212)0($685$%/(',6($6(
$OOPHDVXUHPHQWVVKRXOGEHUHFRUGHGLQPHWULFQRWDWLRQXVLQJFDOLSHUVLIFOLQLFDOO\DVVHVVHG$OOEDVHOLQH
HYDOXDWLRQVVKRXOGEHSHUIRUPHGDVFORVHDVSRVVLEOHWRWKHWUHDWPHQWVWDUWDQGQHYHUPRUHWKDQZHHNV
EHIRUHWKHEHJLQQLQJRIWKHWUHDWPHQW
7KHVDPHPHWKRGRIDVVHVVPHQWDQGWKHVDPHWHFKQLTXHVKRXOGEHXVHGWRFKDUDFWHUL]HHDFKLGHQWLILHGDQG
UHSRUWHGOHVLRQDWEDVHOLQHDQGGXULQJIROORZXS,PDJLQJEDVHGHYDOXDWLRQVKRXOGDOZD\VEHGRQHUDWKHU
WKDQFOLQLFDOH[DPLQDWLRQXQOHVVWKHOHVLRQVEHLQJIROORZHGFDQQRWEHLPDJHGEXWDUHDFFHVVLEOHE\FOLQLFDO
H[DPLQDWLRQ
&OLQLFDOOHVLRQV&OLQLFDOOHVLRQVZLOORQO\EHFRQVLGHUHGPHDVXUDEOHZKHQWKH\DUHVXSHUILFLDODQG3PP
GLDPHWHUDVDVVHVVHGXVLQJFDOLSHUVHJVNLQQRGXOHV)RUWKHFDVHRIVNLQOHVLRQVGRFXPHQWDWLRQE\FRORU
SKRWRJUDSK\LQFOXGLQJDUXOHUWRHVWLPDWHWKHVL]HRIWKHOHVLRQLVVXJJHVWHG$VQRWHGDERYHZKHQOHVLRQV
FDQEHHYDOXDWHGE\ERWKFOLQLFDOH[DPLQDWLRQDQGLPDJLQJLPDJLQJHYDOXDWLRQVKRXOGEHXQGHUWDNHQVLQFHLW
LVPRUHREMHFWLYHDQGPD\DOVREHUHYLHZHGDWWKHHQGRIWKHWULDO
x
&KHVW;UD\&KHVW&7LVSUHIHUUHGRYHUFKHVW;UD\SDUWLFXODUO\ZKHQSURJUHVVLRQLVDQLPSRUWDQW
HQGSRLQWVLQFH&7LVPRUHVHQVLWLYHWKDQ;UD\SDUWLFXODUO\LQLGHQWLI\LQJQHZOHVLRQV+RZHYHU
OHVLRQVRQFKHVW;UD\PD\EHFRQVLGHUHGPHDVXUDEOHLIWKH\DUHFOHDUO\GHILQHGDQGVXUURXQGHGE\
DHUDWHGOXQJ
x
&705,&7LVWKHEHVWFXUUHQWO\DYDLODEOHDQGUHSURGXFLEOHPHWKRGWRPHDVXUHOHVLRQVVHOHFWHGIRU
UHVSRQVHDVVHVVPHQW7KLVJXLGHOLQHKDVGHILQHGPHDVXUDELOLW\RIOHVLRQVRQ&7VFDQEDVHGRQWKH
DVVXPSWLRQWKDW&7VOLFHWKLFNQHVVLVPPRUOHVV:KHQ&7VFDQVKDYHVOLFHWKLFNQHVVJUHDWHUWKDQ
PPWKHPLQLPXPVL]HIRUDPHDVXUDEOHOHVLRQVKRXOGEHWZLFHWKHVOLFHWKLFNQHVV05,LVDOVR
DFFHSWDEOHLQFHUWDLQVLWXDWLRQVHJIRUERG\VFDQV
x
8OWUDVRXQG8OWUDVRXQGLVQRWXVHIXOLQDVVHVVPHQWRIOHVLRQVL]HDQGVKRXOGQRWEHXVHGDVDPHWKRG
RIPHDVXUHPHQW8OWUDVRXQGH[DPLQDWLRQVFDQQRWEHUHSURGXFHGLQWKHLUHQWLUHW\IRULQGHSHQGHQW
UHYLHZDWDODWHUGDWHDQGEHFDXVHWKH\DUHRSHUDWRUGHSHQGHQWLWFDQQRWEHJXDUDQWHHGWKDWWKHVDPH
WHFKQLTXHDQGPHDVXUHPHQWVZLOOEHWDNHQIURPRQHDVVHVVPHQWWRWKHQH[W,IQHZOHVLRQVDUH
LGHQWLILHGE\XOWUDVRXQGLQWKHFRXUVHRIWKHVWXG\FRQILUPDWLRQE\&7RU05,LVDGYLVHG,IWKHUHLV
FRQFHUQDERXWUDGLDWLRQH[SRVXUHDW&705,PD\EHXVHGLQVWHDGRI&7LQVHOHFWHGLQVWDQFHV
x
(QGRVFRS\ODSDURVFRS\7KHXWLOL]DWLRQRIWKHVHWHFKQLTXHVIRUREMHFWLYHWXPRUHYDOXDWLRQLVQRW
DGYLVHG+RZHYHUWKH\FDQEHXVHIXOWRFRQILUPFRPSOHWHSDWKRORJLFDOUHVSRQVHZKHQELRSVLHVDUH
REWDLQHGRUWRGHWHUPLQHUHODSVHLQWULDOVZKHUHUHFXUUHQFHIROORZLQJFRPSOHWHUHVSRQVHRUVXUJLFDO
UHVHFWLRQLVDQHQGSRLQW
x
7XPRUPDUNHUV7XPRUPDUNHUVDORQHFDQQRWEHXVHGWRDVVHVVREMHFWLYHWXPRUUHVSRQVH,IPDUNHUV
DUHLQLWLDOO\DERYHWKHXSSHUQRUPDOOLPLWKRZHYHUWKH\PXVWQRUPDOL]HIRUDSDWLHQWWREH
FRQVLGHUHGLQFRPSOHWHUHVSRQVH%HFDXVHWXPRUPDUNHUVDUHGLVHDVHVSHFLILFLQVWUXFWLRQVIRUWKHLU
PHDVXUHPHQWVKRXOGEHLQFRUSRUDWHGLQWRSURWRFROVRQDGLVHDVHVSHFLILFEDVLV6SHFLILFJXLGHOLQHV
IRUERWK&$UHVSRQVHLQUHFXUUHQWRYDULDQFDQFHUDQGSURVWDWHVSHFLILFDQWLJHQUHVSRQVHLQ
UHFXUUHQWSURVWDWHFDQFHUKDYHEHHQSXEOLVKHG,QDGGLWLRQWKH*\QHFRORJLF&DQFHU,QWHUJURXSKDV


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
GHYHORSHG&$SURJUHVVLRQFULWHULDZKLFKDUHWREHLQWHJUDWHGZLWKREMHFWLYHWXPRUDVVHVVPHQW
IRUXVHLQILUVWOLQHWULDOVLQRYDULDQFDQFHU
x
&\WRORJ\KLVWRORJ\7KHVHWHFKQLTXHVFDQEHXVHGWRGLIIHUHQWLDWHEHWZHHQ35DQG&5LQUDUHFDVHV
LIUHTXLUHGE\SURWRFROIRUH[DPSOHUHVLGXDOOHVLRQVLQWXPRUW\SHVVXFKDVJHUPFHOOWXPRUVZKHUH
NQRZQUHVLGXDOEHQLJQWXPRUVFDQUHPDLQ:KHQHIIXVLRQVDUHNQRZQWREHDSRWHQWLDODGYHUVH
HIIHFWRIWUHDWPHQWHJZLWKFHUWDLQWD[DQHFRPSRXQGVRUDQJLRJHQHVLVLQKLELWRUVWKHF\WRORJLFDO
FRQILUPDWLRQRIWKHQHRSODVWLFRULJLQRIDQ\HIIXVLRQWKDWDSSHDUVRUZRUVHQVGXULQJWUHDWPHQWFDQEH
FRQVLGHUHGLIWKHPHDVXUDEOHWXPRUKDVPHWFULWHULDIRUUHVSRQVHRU6'LQRUGHUWRGLIIHUHQWLDWH
EHWZHHQUHVSRQVHRU6'DQGSURJUHVVLYHGLVHDVH
5(63216(&5,7(5,$
(YDOXDWLRQRI7DUJHW/HVLRQV
x
&RPSOHWH5HVSRQVH&5'LVDSSHDUDQFHRIDOOWDUJHWOHVLRQV$Q\SDWKRORJLFDOO\PSKQRGHV
ZKHWKHUWDUJHWRUQRQWDUJHWPXVWKDYHUHGXFWLRQLQVKRUWD[LVWRPP
x
3DUWLDO5HVSRQVH35$WOHDVWDGHFUHDVHLQWKHVXPRIGLDPHWHUVRIWDUJHWOHVLRQVWDNLQJDV
UHIHUHQFHWKHEDVHOLQHVXPGLDPHWHUV
x
3URJUHVVLYH'LVHDVH3'$WOHDVWDLQFUHDVHLQWKHVXPRIGLDPHWHUVRIWDUJHWOHVLRQVWDNLQJDV
UHIHUHQFHWKHVPDOOHVWVXPRQVWXG\WKLVLQFOXGHVWKHEDVHOLQHVXPLIWKDWLVWKHVPDOOHVWRQVWXG\
,QDGGLWLRQWRWKHUHODWLYHLQFUHDVHRIWKHVXPPXVWDOVRGHPRQVWUDWHDQDEVROXWHLQFUHDVHRIDW
OHDVWPP1RWHWKHDSSHDUDQFHRIRQHRUPRUHQHZOHVLRQVLVDOVRFRQVLGHUHGSURJUHVVLRQ
x
6WDEOH'LVHDVH6'1HLWKHUVXIILFLHQWVKULQNDJHWRTXDOLI\IRU35QRUVXIILFLHQWLQFUHDVHWRTXDOLI\
IRU3'WDNLQJDVUHIHUHQFHWKHVPDOOHVWVXPGLDPHWHUVZKLOHRQVWXG\
x
/\PSKQRGHV/\PSKQRGHVLGHQWLILHGDVWDUJHWOHVLRQVVKRXOGDOZD\VKDYHWKHDFWXDOVKRUWD[LV
PHDVXUHPHQWUHFRUGHGPHDVXUHGLQWKHVDPHDQDWRPLFDOSODQHDVWKHEDVHOLQHH[DPLQDWLRQHYHQLI
WKHQRGHVUHJUHVVWREHORZPPRQVWXG\7KLVPHDQVWKDWZKHQO\PSKQRGHVDUHLQFOXGHGDV
WDUJHWOHVLRQVWKH³VXP´RIOHVLRQVPD\QRWEH]HURHYHQLIFRPSOHWHUHVSRQVHFULWHULDDUHPHWVLQFH
DQRUPDOO\PSKQRGHLVGHILQHGDVKDYLQJDVKRUWD[LVRIPP&DVHUHSRUWUHFRUGHGLQD
VHSDUDWHVHFWLRQZKHUHLQRUGHUWRTXDOLI\IRU&5HDFKQRGHPXVWDFKLHYHDVKRUWD[LVPP)RU
356'DQG3'WKHDFWXDOVKRUWD[LVPHDVXUHPHQWRIWKHQRGHVLVWREHLQFOXGHGLQWKHVXPRIWDUJHW
OHVLRQV
x
7DUJHWOHVLRQVWKDWEHFRPH³WRRVPDOOWRPHDVXUH´:KLOHRQVWXG\DOOOHVLRQVQRGDODQG
QRQQRGDOUHFRUGHGDWEDVHOLQHVKRXOGKDYHWKHLUDFWXDOPHDVXUHPHQWVUHFRUGHGDWHDFKVXEVHTXHQW
HYDOXDWLRQHYHQZKHQYHU\VPDOOHJPP+RZHYHUVRPHWLPHVOHVLRQVRUO\PSKQRGHVZKLFK
DUHUHFRUGHGDVWDUJHWOHVLRQVDWEDVHOLQHEHFRPHVRIDLQWRQ&7VFDQWKDWWKHUDGLRORJLVWPD\QRWIHHO
FRPIRUWDEOHDVVLJQLQJDQH[DFWPHDVXUHDQGPD\UHSRUWWKHPDVEHLQJ³WRRVPDOOWRPHDVXUH´

:KHQWKLVRFFXUVLWLVLPSRUWDQWWKDWDYDOXHEHUHFRUGHGRQWKHH&5),ILWLVWKHRSLQLRQRIWKH
UDGLRORJLVWWKDWWKHOHVLRQKDVOLNHO\GLVDSSHDUHGWKHPHDVXUHPHQWVKRXOGEHUHFRUGHGDVPP,I
WKHOHVLRQLVEHOLHYHGWREHSUHVHQWDQGLVIDLQWO\VHHQEXWWRRVPDOOWRPHDVXUHDGHIDXOWYDOXHRI


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
PPVKRXOGEHDVVLJQHG1RWH,WLVOHVVOLNHO\WKDWWKLVUXOHZLOOEHXVHGIRUO\PSKQRGHVVLQFHWKH\
XVXDOO\KDYHDGHILQDEOHVL]HZKHQQRUPDODQGDUHIUHTXHQWO\VXUURXQGHGE\IDWVXFKDVLQWKH
UHWURSHULWRQHXPKRZHYHULIDO\PSKQRGHLVEHOLHYHGWREHSUHVHQWDQGLVIDLQWO\VHHQEXWWRRVPDOO
WRPHDVXUHDGHIDXOWYDOXHRIPPVKRXOGEHDVVLJQHGLQWKLVFLUFXPVWDQFHDVZHOO7KLVGHIDXOW
YDOXHLVGHULYHGIURPWKHPP&7VOLFHWKLFNQHVVEXWVKRXOGQRWEHFKDQJHGZLWKYDU\LQJ&7VOLFH
WKLFNQHVV7KHPHDVXUHPHQWRIWKHVHOHVLRQVLVSRWHQWLDOO\QRQUHSURGXFLEOHWKHUHIRUHSURYLGLQJ
WKLVGHIDXOWYDOXHZLOOSUHYHQWIDOVHUHVSRQVHVRUSURJUHVVLRQVEDVHGXSRQPHDVXUHPHQWHUURU7R
UHLWHUDWHKRZHYHULIWKHUDGLRORJLVWLVDEOHWRSURYLGHDQDFWXDOPHDVXUHWKDWVKRXOGEHUHFRUGHG
HYHQLILWLVEHORZPP
x
/HVLRQVWKDWVSOLWRUFRDOHVFHRQWUHDWPHQW:KHQQRQQRGDOOHVLRQV³IUDJPHQW´WKHORQJHVW
GLDPHWHUVRIWKHIUDJPHQWHGSRUWLRQVVKRXOGEHDGGHGWRJHWKHUWRFDOFXODWHWKHWDUJHWOHVLRQVXP
6LPLODUO\DVOHVLRQVFRDOHVFHDSODQHEHWZHHQWKHPPD\EHPDLQWDLQHGWKDWZRXOGDLGLQREWDLQLQJ
PD[LPDOGLDPHWHUPHDVXUHPHQWVRIHDFKLQGLYLGXDOOHVLRQ,IWKHOHVLRQVKDYHWUXO\FRDOHVFHGVXFK
WKDWWKH\DUHQRORQJHUVHSDUDEOHWKHYHFWRURIWKHORQJHVWGLDPHWHULQWKLVLQVWDQFHVKRXOGEHWKH
PD[LPDOORQJHVWGLDPHWHUIRUWKH³FRDOHVFHGOHVLRQ´
(YDOXDWLRQRI1RQWDUJHW/HVLRQV
:KLOHVRPHQRQWDUJHWOHVLRQVPD\DFWXDOO\EHPHDVXUDEOHWKH\QHHGQRWEHPHDVXUHGDQGLQVWHDGVKRXOGEH
DVVHVVHGRQO\TXDOLWDWLYHO\DWWKHWLPHSRLQWVVSHFLILHGLQWKHSURWRFRO
x
&5'LVDSSHDUDQFHRIDOOQRQWDUJHWOHVLRQVDQGQRUPDOL]DWLRQRIWXPRUPDUNHUOHYHO$OOO\PSK
QRGHVPXVWEHQRQSDWKRORJLFDOLQVL]HPPVKRUWD[LV
x
3'8QHTXLYRFDOSURJUHVVLRQDVGHWDLOHGEHORZRIH[LVWLQJQRQWDUJHWOHVLRQV1RWHWKH
DSSHDUDQFHRIRQHRUPRUHQHZOHVLRQVLVDOVRFRQVLGHUHGSURJUHVVLRQ
x
1RQ&51RQ3'3HUVLVWHQFHRIRQHRUPRUHQRQWDUJHWOHVLRQVDQGRUPDLQWHQDQFHRIWXPRU
PDUNHUOHYHODERYHWKHQRUPDOOLPLWV
x
:KHQWKHSDWLHQWDOVRKDVPHDVXUDEOHGLVHDVH,QWKLVVHWWLQJWRDFKLHYH³XQHTXLYRFDOSURJUHVVLRQ´
RQWKHEDVLVRIWKHQRQWDUJHWGLVHDVHWKHUHPXVWEHDQRYHUDOOOHYHORIVXEVWDQWLDOZRUVHQLQJLQ
QRQWDUJHWGLVHDVHVXFKWKDWHYHQLQSUHVHQFHRI6'RU35LQWDUJHWGLVHDVHWKHRYHUDOOWXPRUEXUGHQ
KDVLQFUHDVHGVXIILFLHQWO\WRPHULWGLVFRQWLQXDWLRQRIWKHUDS\$PRGHVW³LQFUHDVH´LQWKHVL]HRIRQH
RUPRUHQRQWDUJHWOHVLRQVLVXVXDOO\QRWVXIILFLHQWWRTXDOLI\IRUXQHTXLYRFDOSURJUHVVLRQVWDWXV7KH
GHVLJQDWLRQRIRYHUDOOSURJUHVVLRQVROHO\RQWKHEDVLVRIFKDQJHLQQRQWDUJHWGLVHDVHLQWKHIDFHRI6'
RU35RIWDUJHWGLVHDVHZLOOWKHUHIRUHEHH[WUHPHO\UDUH
x
:KHQWKHSDWLHQWKDVRQO\QRQPHDVXUDEOHGLVHDVH7KLVFLUFXPVWDQFHDULVHVLQVRPHSKDVHWULDOV
ZKHQLWLVQRWDFULWHULRQRIWULDOHQWU\WRKDYHPHDVXUDEOHGLVHDVH7KHVDPHJHQHUDOFRQFHSWDSSO\
KHUHDVQRWHGDERYHKRZHYHULQWKLVLQVWDQFHWKHUHLVQRPHDVXUDEOHGLVHDVHDVVHVVPHQWWRIDFWRU
LQWRWKHLQWHUSUHWDWLRQRIDQLQFUHDVHLQQRQPHDVXUDEOHGLVHDVHEXUGHQ%HFDXVHZRUVHQLQJLQ
QRQWDUJHWGLVHDVHFDQQRWEHHDVLO\TXDQWLILHGE\GHILQLWLRQLIDOOOHVLRQVDUHWUXO\QRQPHDVXUDEOH
DXVHIXOWHVWWKDWFDQEHDSSOLHGZKHQDVVHVVLQJSDWLHQWVIRUXQHTXLYRFDOSURJUHVVLRQLVWRFRQVLGHULI
WKHLQFUHDVHLQRYHUDOOGLVHDVHEXUGHQEDVHGRQWKHFKDQJHLQQRQPHDVXUDEOHGLVHDVHLVFRPSDUDEOH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
LQPDJQLWXGHWRWKHLQFUHDVHWKDWZRXOGEHUHTXLUHGWRGHFODUH3'IRUPHDVXUDEOHGLVHDVHLHDQ
LQFUHDVHLQWXPRUEXUGHQUHSUHVHQWLQJDQDGGLWLRQDOLQFUHDVHLQ³YROXPH´ZKLFKLVHTXLYDOHQW
WRDLQFUHDVHGLDPHWHULQDPHDVXUDEOHOHVLRQ
x
([DPSOHVLQFOXGHDQLQFUHDVHLQDSOHXUDOHIIXVLRQIURP³WUDFH´WR³ODUJH´DQLQFUHDVHLQ
O\PSKDQJLWLFGLVHDVHIURPORFDOL]HGWRZLGHVSUHDGRUPD\EHGHVFULEHGLQSURWRFROVDV³VXIILFLHQWWR
UHTXLUHDFKDQJHLQWKHUDS\´,I³XQHTXLYRFDOSURJUHVVLRQ´LVVHHQWKHSDWLHQWVKRXOGEHFRQVLGHUHG
WRKDYHKDGRYHUDOO3'DWWKDWSRLQW:KLOHLWZRXOGEHLGHDOWRKDYHREMHFWLYHFULWHULDWRDSSO\WR
QRQPHDVXUDEOHGLVHDVHWKHYHU\QDWXUHRIWKDWGLVHDVHPDNHVLWLPSRVVLEOHWRGRVRWKHUHIRUHWKH
LQFUHDVHPXVWEHVXEVWDQWLDO
1HZ/HVLRQV
7KHDSSHDUDQFHRIQHZPDOLJQDQWOHVLRQVGHQRWHVGLVHDVHSURJUHVVLRQWKHUHIRUHVRPHFRPPHQWVRQ
GHWHFWLRQRIQHZOHVLRQVDUHLPSRUWDQW7KHUHDUHQRVSHFLILFFULWHULDIRUWKHLGHQWLILFDWLRQRIQHZ
UDGLRJUDSKLFOHVLRQVKRZHYHUWKHILQGLQJRIDQHZOHVLRQVKRXOGEHXQHTXLYRFDOLHQRWDWWULEXWDEOHWR
GLIIHUHQFHVLQVFDQQLQJWHFKQLTXHFKDQJHLQLPDJLQJPRGDOLW\RUILQGLQJVWKRXJKWWRUHSUHVHQWVRPHWKLQJ
RWKHUWKDQWXPRUIRUH[DPSOHVRPH³QHZ´ERQHOHVLRQVPD\EHVLPSO\KHDOLQJRUIODUHRISUHH[LVWLQJ
OHVLRQV7KLVLVSDUWLFXODUO\LPSRUWDQWZKHQWKHSDWLHQW¶VEDVHOLQHOHVLRQVVKRZSDUWLDORUFRPSOHWHUHVSRQVH
)RUH[DPSOHQHFURVLVRIDOLYHUOHVLRQPD\EHUHSRUWHGRQD&7VFDQUHSRUWDVD³QHZ´F\VWLFOHVLRQZKLFKLW
LVQRW
$OHVLRQLGHQWLILHGRQDIROORZXSWULDOLQDQDQDWRPLFDOORFDWLRQWKDWZDVQRWVFDQQHGDWEDVHOLQHLV
FRQVLGHUHGDQHZOHVLRQDQGZLOOLQGLFDWHGLVHDVHSURJUHVVLRQ$QH[DPSOHRIWKLVLVWKHSDWLHQWZKRKDV
YLVFHUDOGLVHDVHDWEDVHOLQHDQGZKLOHRQWULDOKDVD&7RU05,EUDLQRUGHUHGZKLFKUHYHDOVPHWDVWDVHV7KH
SDWLHQW¶VEUDLQPHWDVWDVHVDUHFRQVLGHUHGWREHHYLGHQFHRI3'HYHQLIKHVKHGLGQRWKDYHEUDLQLPDJLQJDW
EDVHOLQH
,IDQHZOHVLRQLVHTXLYRFDOIRUH[DPSOHEHFDXVHRILWVVPDOOVL]HFRQWLQXHGWKHUDS\DQGIROORZXS
HYDOXDWLRQZLOOFODULI\LILWUHSUHVHQWVWUXO\QHZGLVHDVH,IUHSHDWVFDQVFRQILUPWKHUHLVGHILQLWHO\DQHZ
OHVLRQWKHQSURJUHVVLRQVKRXOGEHGHFODUHGXVLQJWKHGDWHRIWKHLQLWLDOVFDQ
:KLOHIOXRURGHR[\JOXFRVH)'*3(7UHVSRQVHDVVHVVPHQWVQHHGDGGLWLRQDOVWXG\LWLVVRPHWLPHV
UHDVRQDEOHWRLQFRUSRUDWHWKHXVHRI)'*3(7VFDQQLQJWRFRPSOHPHQW&7VFDQQLQJLQDVVHVVPHQWRI
SURJUHVVLRQSDUWLFXODUO\SRVVLEOH³QHZ´GLVHDVH1HZOHVLRQVRQWKHEDVLVRI)'*3(7LPDJLQJFDQEH
LGHQWLILHGDFFRUGLQJWRWKHIROORZLQJDOJRULWKP
1HJDWLYH)'*3(7DWEDVHOLQHZLWKDSRVLWLYH)'*3(7DWIROORZXSLVDVLJQRI3'EDVHGRQDQHZ
OHVLRQ
x
1R)'*3(7DWEDVHOLQHDQGDSRVLWLYH)'*3(7DWIROORZXS,IWKHSRVLWLYH)'*3(7DW
IROORZXSFRUUHVSRQGVWRDQHZVLWHRIGLVHDVHFRQILUPHGE\&7WKLVLV3',IWKHSRVLWLYH
)'*3(7DWIROORZXSLVQRWFRQILUPHGDVDQHZVLWHRIGLVHDVHRQ&7DGGLWLRQDOIROORZXS&7
VFDQVDUHQHHGHGWRGHWHUPLQHLIWKHUHLVWUXO\SURJUHVVLRQRFFXUULQJDWWKDWVLWHLIVRWKHGDWHRI3'
ZLOOEHWKHGDWHRIWKHLQLWLDODEQRUPDO)'*3(7VFDQ,IWKHSRVLWLYH)'*3(7DWIROORZXS
FRUUHVSRQGVWRDSUHH[LVWLQJVLWHRIGLVHDVHRQ&7WKDWLVQRWSURJUHVVLQJRQWKHEDVLVRIWKH
DQDWRPLFLPDJHVWKLVLVQRW3'


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
(YDOXDWLRQRI%HVW2YHUDOO5HVSRQVH
7KH%25LVWKHEHVWUHVSRQVHUHFRUGHGIURPWKHVWDUWRIWKHVWXG\GUXJWUHDWPHQWXQWLOWKHHQGRIWUHDWPHQW
WDNLQJLQWRDFFRXQWDQ\UHTXLUHPHQWIRUFRQILUPDWLRQ2QRFFDVLRQDUHVSRQVHPD\QRWEHGRFXPHQWHGXQWLO
DIWHUWKHHQGRIWKHUDS\VRSURWRFROVVKRXOGEHFOHDULISRVWWUHDWPHQWDVVHVVPHQWVDUHWREHFRQVLGHUHGLQ
GHWHUPLQDWLRQRI%253URWRFROVPXVWVSHFLI\KRZDQ\QHZWKHUDS\LQWURGXFHGEHIRUHSURJUHVVLRQZLOO
DIIHFWEHVWUHVSRQVHGHVLJQDWLRQ7KHSDWLHQW¶V%25DVVLJQPHQWZLOOGHSHQGRQWKHILQGLQJVRIERWKWDUJHW
DQGQRQWDUJHWGLVHDVHDQGZLOODOVRWDNHLQWRFRQVLGHUDWLRQWKHDSSHDUDQFHRIQHZOHVLRQV)XUWKHUPRUH
GHSHQGLQJRQWKHQDWXUHRIWKHWULDODQGWKHSURWRFROUHTXLUHPHQWVLWPD\DOVRUHTXLUHFRQILUPDWRU\
PHDVXUHPHQW6SHFLILFDOO\LQQRQUDQGRPL]HGWULDOVZKHUHUHVSRQVHLVWKHSULPDU\HQGSRLQWFRQILUPDWLRQ
RI35RU&5LVQHHGHGWRGHHPHLWKHURQHWKH³EHVWRYHUDOOUHVSRQVH´
7KH%25LVGHWHUPLQHGRQFHDOOWKHGDWDIRUWKHSDWLHQWLVNQRZQ%HVWUHVSRQVHGHWHUPLQDWLRQLQWULDOV
ZKHUHFRQILUPDWLRQRIFRPSOHWHRUSDUWLDOUHVSRQVH,6127UHTXLUHG%HVWUHVSRQVHLQWKHVHWULDOVLVGHILQHG
DVWKHEHVWUHVSRQVHDFURVVDOOWLPHSRLQWVIRUH[DPSOHDSDWLHQWZKRKDV6'DWILUVWDVVHVVPHQW35DW
VHFRQGDVVHVVPHQWDQG3'RQODVWDVVHVVPHQWKDVD%25RI35:KHQ6'LVEHOLHYHGWREHEHVWUHVSRQVH
LWPXVWDOVRPHHWWKHSURWRFROVSHFLILHGPLQLPXPWLPHIURPEDVHOLQH,IWKHPLQLPXPWLPHLVQRWPHWZKHQ
6'LVRWKHUZLVHWKHEHVWWLPHSRLQWUHVSRQVHWKHSDWLHQW¶VEHVWUHVSRQVHGHSHQGVRQWKHVXEVHTXHQW
DVVHVVPHQWV)RUH[DPSOHDSDWLHQWZKRKDV6'DWILUVWDVVHVVPHQW3'DWVHFRQGDQGGRHVQRWPHHW
PLQLPXPGXUDWLRQIRU6'ZLOOKDYHDEHVWUHVSRQVHRI3'7KHVDPHSDWLHQWORVWWRIROORZXSDIWHUWKHILUVW
6'DVVHVVPHQWZRXOGEHFRQVLGHUHGLQHYDOXDEOH

7DUJHW/HVLRQV
1RQWDUJHW/HVLRQV
1HZ/HVLRQV
2YHUDOO5HVSRQVH
&5
&5
&5
35

6'

1RWDOOHYDOXDWHG
3'
$Q\
$Q\
&5
1RQ&5QRQ3'
1RWHYDOXDWHG
1RQ3'RUQRWDOO
HYDOXDWHG
1RQ3'RUQRWDOO
HYDOXDWHG
1RQ3'
$Q\
3'
$Q\
1R
1R
1R
1R

1R

1R
<HVRU1R
<HVRU1R
<HV
&5
35
35
35

6'

1(
3'
3'
3'
$EEUHYLDWLRQV&5FRPSOHWHUHVSRQVH1(QRWHYDOXDEOH3'SURJUHVVLYHGLVHDVH35SDUWLDOUHVSRQVH6'VWDEOH
GLVHDVH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
:KHQQRGDOGLVHDVHLVLQFOXGHGLQWKHVXPRIWDUJHWOHVLRQVDQGWKHQRGHVGHFUHDVHWR³QRUPDO´VL]H
PPWKH\PD\VWLOOKDYHDPHDVXUHPHQWUHSRUWHGRQVFDQV7KLVPHDVXUHPHQWVKRXOGEHUHFRUGHG
HYHQWKRXJKWKHQRGHVDUHQRUPDOLQRUGHUQRWWRRYHUVWDWHSURJUHVVLRQVKRXOGLWEHEDVHGRQLQFUHDVHLQVL]H
RIWKHQRGHV$VQRWHGHDUOLHUWKLVPHDQVWKDWSDWLHQWVZLWK&5PD\QRWKDYHDWRWDOVXPRI³]HUR´
,QWULDOVZKHUHFRQILUPDWLRQRIUHVSRQVHLVUHTXLUHGUHSHDWHGµ1(¶WLPHSRLQWDVVHVVPHQWVPD\FRPSOLFDWH
EHVWUHVSRQVHGHWHUPLQDWLRQ7KHDQDO\VLVSODQIRUWKHWULDOPXVWDGGUHVVKRZPLVVLQJGDWDDVVHVVPHQWVZLOO
EHDGGUHVVHGLQGHWHUPLQDWLRQRIUHVSRQVHDQGSURJUHVVLRQ)RUH[DPSOHLQPRVWWULDOVLWLVUHDVRQDEOHWR
FRQVLGHUDSDWLHQWZLWKWLPHSRLQWUHVSRQVHVRI351(35DVDFRQILUPHGUHVSRQVH
3DWLHQWVZLWKDJOREDOGHWHULRUDWLRQRIKHDOWKVWDWXVUHTXLULQJGLVFRQWLQXDWLRQRIWUHDWPHQWZLWKRXWREMHFWLYH
HYLGHQFHRIGLVHDVHSURJUHVVLRQDWWKDWWLPHVKRXOGEHUHSRUWHGDV³V\PSWRPDWLFGHWHULRUDWLRQ´(YHU\HIIRUW
VKRXOGEHPDGHWRGRFXPHQWREMHFWLYHSURJUHVVLRQHYHQDIWHUGLVFRQWLQXDWLRQRIWUHDWPHQW6\PSWRPDWLF
GHWHULRUDWLRQLVQRWDGHVFULSWRURIDQREMHFWLYHUHVSRQVHLWLVDUHDVRQIRUVWRSSLQJWULDOWKHUDS\
&RQGLWLRQVWKDWGHILQH³HDUO\SURJUHVVLRQHDUO\GHDWKDQGLQHYDOXDELOLW\´DUHWULDOVSHFLILFDQGVKRXOGEH
FOHDUO\GHVFULEHGLQHDFKSURWRFROGHSHQGLQJRQWUHDWPHQWGXUDWLRQWUHDWPHQWSHULRGLFLW\
,QVRPHFLUFXPVWDQFHVLWPD\EHGLIILFXOWWRGLVWLQJXLVKUHVLGXDOGLVHDVHIURPQRUPDOWLVVXH:KHQWKH
HYDOXDWLRQRIFRPSOHWHUHVSRQVHGHSHQGVXSRQWKLVGHWHUPLQDWLRQLWLVUHFRPPHQGHGWKDWWKHUHVLGXDOOHVLRQ
EHLQYHVWLJDWHGILQHQHHGOHDVSLUDWHELRSV\EHIRUHDVVLJQLQJDVWDWXVRIFRPSOHWHUHVSRQVH)'*3(7PD\
EHXVHGWRXSJUDGHDUHVSRQVHWRD&5LQDPDQQHUVLPLODUWRDELRSV\LQFDVHVZKHUHDUHVLGXDOUDGLRJUDSKLF
DEQRUPDOLW\LVWKRXJKWWRUHSUHVHQWILEURVLVRUVFDUULQJ7KHXVHRI)'*3(7LQWKLVFLUFXPVWDQFHVKRXOGEH
SURVSHFWLYHO\GHVFULEHGLQWKHSURWRFRODQGVXSSRUWHGE\GLVHDVHVSHFLILFPHGLFDOOLWHUDWXUHIRUWKHLQGLFDWLRQ
+RZHYHULWPXVWEHDFNQRZOHGJHGWKDWERWKDSSURDFKHVPD\OHDGWRIDOVHSRVLWLYH&5GXHWROLPLWDWLRQVRI
)'*3(7DQGELRSV\UHVROXWLRQVHQVLWLYLW\
)RUHTXLYRFDOILQGLQJVRISURJUHVVLRQHJYHU\VPDOODQGXQFHUWDLQQHZOHVLRQVF\VWLFFKDQJHVRUQHFURVLV
LQH[LVWLQJOHVLRQVWUHDWPHQWPD\FRQWLQXHXQWLOWKHQH[WVFKHGXOHGDVVHVVPHQW,IDWWKHQH[WVFKHGXOHG
DVVHVVPHQWSURJUHVVLRQLVFRQILUPHGWKHGDWHRISURJUHVVLRQVKRXOGEHWKHHDUOLHUGDWHZKHQSURJUHVVLRQ
ZDVVXVSHFWHG

&21),50$725<0($685(0(17'85$7,212)5(63216(
&RQILUPDWLRQ
,QQRQUDQGRPL]HGWULDOVZKHUHUHVSRQVHLVWKHSULPDU\HQGSRLQWFRQILUPDWLRQRI35DQG&5LVUHTXLUHGWR
HQVXUHUHVSRQVHVLGHQWLILHGDUHQRWWKHUHVXOWRIPHDVXUHPHQWHUURU7KLVZLOODOVRSHUPLWDSSURSULDWH
LQWHUSUHWDWLRQRIUHVXOWVLQWKHFRQWH[WRIKLVWRULFDOGDWDZKHUHUHVSRQVHKDVWUDGLWLRQDOO\UHTXLUHG
FRQILUPDWLRQLQVXFKWULDOV+RZHYHULQDOORWKHUFLUFXPVWDQFHVLHLQUDQGRPL]HGWULDOVSKDVHRURU
WULDOVZKHUH6'RUSURJUHVVLRQDUHWKHSULPDU\HQGSRLQWVFRQILUPDWLRQRIUHVSRQVHLVQRWUHTXLUHGVLQFHLW
ZLOOQRWDGGYDOXHWRWKHLQWHUSUHWDWLRQRIWULDOUHVXOWV+RZHYHUHOLPLQDWLRQRIWKHUHTXLUHPHQWIRUUHVSRQVH
FRQILUPDWLRQPD\LQFUHDVHWKHLPSRUWDQFHRIFHQWUDOUHYLHZWRSURWHFWDJDLQVWELDVLQSDUWLFXODULQWULDOV
ZKLFKDUHQRWEOLQGHG


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
,QWKHFDVHRI6'PHDVXUHPHQWVPXVWKDYHPHWWKH6'FULWHULDDWOHDVWRQFHDIWHUWULDOHQWU\DWDPLQLPXP
LQWHUYDOLQJHQHUDOQRWOHVVWKDQZHHNV
'XUDWLRQRI2YHUDOO5HVSRQVH
7KHGXUDWLRQRIRYHUDOOUHVSRQVHLVPHDVXUHGIURPWKHWLPHPHDVXUHPHQWFULWHULDDUHILUVWPHWIRU&535
ZKLFKHYHULVILUVWUHFRUGHGXQWLOWKHILUVWGDWHWKDWUHFXUUHQWRUSURJUHVVLYHGLVHDVHLVREMHFWLYHO\
GRFXPHQWHGWDNLQJDVUHIHUHQFHIRUSURJUHVVLYHGLVHDVHWKHVPDOOHVWPHDVXUHPHQWVUHFRUGHGRQVWXG\
7KHGXUDWLRQRIRYHUDOOFRPSOHWHUHVSRQVHLVPHDVXUHGIURPWKHWLPHPHDVXUHPHQWFULWHULDDUHILUVWPHWIRU
&5XQWLOWKHILUVWGDWHWKDWUHFXUUHQWGLVHDVHLVREMHFWLYHO\GRFXPHQWHG
'XUDWLRQRI6WDEOH'LVHDVH
6WDEOHGLVHDVHLVPHDVXUHGIURPWKHVWDUWRIWKHWUHDWPHQWLQUDQGRPLVHGWULDOVIURPGDWHRIUDQGRPL]DWLRQ
XQWLOWKHFULWHULDIRUSURJUHVVLRQDUHPHWWDNLQJDVUHIHUHQFHWKHVPDOOHVWVXPRQVWXG\LIWKHEDVHOLQHVXPLV
WKHVPDOOHVWWKLVLVWKHUHIHUHQFHIRUFDOFXODWLRQRI3'
7KHFOLQLFDOUHOHYDQFHRIWKHGXUDWLRQRI6'YDULHVLQGLIIHUHQWVWXGLHVDQGGLVHDVHV,IWKHSURSRUWLRQRI
SDWLHQWVDFKLHYLQJ6'IRUDPLQLPXPSHULRGRIWLPHLVDQHQGSRLQWRILPSRUWDQFHLQDSDUWLFXODUWULDOWKH
SURWRFROVKRXOGVSHFLI\WKHPLQLPDOWLPHLQWHUYDOUHTXLUHGEHWZHHQPHDVXUHPHQWVIRUGHWHUPLQDWLRQRI6'
1RWH7KHGXUDWLRQRIUHVSRQVHDQG6'DVZHOODVWKH3)6DUHLQIOXHQFHGE\WKHIUHTXHQF\RIIROORZXSDIWHU
EDVHOLQHHYDOXDWLRQ,WLVQRWLQWKHVFRSHRIWKLVJXLGHOLQHWRGHILQHDVWDQGDUGIROORZXSIUHTXHQF\7KH
IUHTXHQF\VKRXOGWDNHLQWRDFFRXQWPDQ\SDUDPHWHUVLQFOXGLQJGLVHDVHW\SHVDQGVWDJHVWUHDWPHQW
SHULRGLFLW\DQGVWDQGDUGSUDFWLFH+RZHYHUWKHVHOLPLWDWLRQVRIWKHSUHFLVLRQRIWKHPHDVXUHGHQGSRLQW
VKRXOGEHWDNHQLQWRDFFRXQWLIFRPSDULVRQVEHWZHHQWULDOVDUHWREHPDGH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
1(:<25.+($57$662&,$7,21)81&7,21$/&/$66,),&$7,21
&ODVV
6\PSWRPV
,
1ROLPLWDWLRQRISK\VLFDODFWLYLW\2UGLQDU\SK\VLFDODFWLYLW\GRHVQRWFDXVHXQGXHIDWLJXH
SDOSLWDWLRQG\VSQHDVKRUWQHVVRIEUHDWK
,,
6OLJKWOLPLWDWLRQRISK\VLFDODFWLYLW\&RPIRUWDEOHDWUHVWEXWRUGLQDU\SK\VLFDODFWLYLW\UHVXOWVLQ
IDWLJXHSDOSLWDWLRQG\VSQHDVKRUWQHVVRIEUHDWK
,,,
0DUNHGOLPLWDWLRQRISK\VLFDODFWLYLW\&RPIRUWDEOHDWUHVWEXWOHVVWKDQRUGLQDU\DFWLYLW\FDXVHV
IDWLJXHSDOSLWDWLRQRUG\VSQHD
,9
8QDEOHWRFDUU\RQDQ\SK\VLFDODFWLYLW\ZLWKRXWGLVFRPIRUW6\PSWRPVRIKHDUWIDLOXUHDWUHVW,IDQ\
SK\VLFDODFWLYLW\LVXQGHUWDNHQGLVFRPIRUWLQFUHDVHV
$GDSWHGIURP'ROJLQ0$VVRFLDWLRQ1<+)R[$&*RUOLQ5/HYLQ5,1HZ<RUN+HDUW$VVRFLDWLRQ&ULWHULD
&RPPLWWHH1RPHQFODWXUHDQGFULWHULDIRUGLDJQRVLVRIGLVHDVHVRIWKHKHDUWDQGJUHDWYHVVHOVWKHG%RVWRQ0$
/LSSLQFRWW:LOOLDPVDQG:LONLQV0DUFK

2ULJLQDOVRXUFH&ULWHULD&RPPLWWHH1HZ<RUN+HDUW$VVRFLDWLRQ,QF'LVHDVHVRIWKH+HDUWDQG%ORRG
9HVVHOV1RPHQFODWXUHDQG&ULWHULDIRUGLDJQRVLVWKHGLWLRQ%RVWRQ/LWWOH%URZQDQG&RS


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
,0081(5(/$7('$'9(56((9(17(9$/8$7,21$1'0$1$*(0(17
7KHUHFRPPHQGDWLRQVEHORZIRUWKHGLDJQRVLVDQGPDQDJHPHQWRIDQ\LU$(DUHLQWHQGHGDVDJXLGDQFH7KLV
GRFXPHQWVKRXOGEHXVHGLQFRQMXQFWLRQZLWKH[SHUWFOLQLFDOMXGJHPHQWE\VSHFLDOLVWSK\VLFLDQVH[SHULHQFHG
LQWKHWUHDWPHQWRIFDQFHUXVLQJLPPXQRORJLFDODJHQWVDQGLQGLYLGXDOLQVWLWXWLRQDOJXLGHOLQHVRUSROLFLHV
&ULWHULDXVHGWRGLDJQRVHLU$(VLQFOXGHEORRGWHVWVGLDJQRVWLFLPDJLQJKLVWRSDWKRORJ\DQGPLFURELRORJ\
DVVHVVPHQWVWRH[FOXGHDOWHUQDWLYHFDXVHVVXFKDVLQIHFWLRQGLVHDVHSURJUHVVLRQDQGDGYHUVHHIIHFWVRI
FRQFRPLWDQWGUXJV,QDGGLWLRQWRWKHUHVXOWVRIWKHVHWHVWVWKHIROORZLQJIDFWRUVVKRXOGEHFRQVLGHUHGZKHQ
PDNLQJDQLU$(GLDJQRVLV
x
:KDWZDVWKHWHPSRUDOUHODWLRQVKLSEHWZHHQLQLWLDWLRQRI%*%$DQGWKHDGYHUVHHYHQW"
x
+RZGLGWKHSDWLHQWUHVSRQGWRZLWKGUDZDORI%*%$"
x
'LGWKHHYHQWUHFXUZKHQ%*%$ZDVUHLQWURGXFHG"
x
:DVWKHUHDFOLQLFDOUHVSRQVHWRFRUWLFRVWHURLGV"
x
,VWKHHYHQWDQDXWRLPPXQHHQGRFULQRSDWK\"
x
,VGLVHDVHSURJUHVVLRQRUDQDOWHUQDWLYHGLDJQRVLVDPRUHOLNHO\H[SODQDWLRQ"
:KHQDOWHUQDWLYHH[SODQDWLRQVWRDXWRLPPXQHWR[LFLW\KDYHEHHQH[FOXGHGWKHLU$(ILHOGDVVRFLDWHGZLWK
WKH$(LQWKHH&5)VKRXOGEHFKHFNHG
5HFRPPHQGHG'LDJQRVWLF7HVWVLQWKH0DQDJHPHQWRI3RVVLEOH,PPXQHUHODWHG$GYHUVH(YHQWV
,PPXQHUHODWHG7R[LFLW\
'LDJQRVWLF(YDOXDWLRQ*XLGHOLQH
7K\URLG'LVRUGHUV
6FKHGXOHGDQGUHSHDWWK\URLGIXQFWLRQWHVWV76+DQG7
+\SRSK\VLWLV
&KHFNYLVXDOILHOGVDQGFRQVLGHUSLWXLWDU\HQGRFULQHD[LVEORRGSURILOH
3HUIRUPSLWXLWDU\DQGZKROHEUDLQ05,LQSDWLHQWVZLWKKHDGDFKHYLVXDO
GLVWXUEDQFHXQH[SODLQHGIDWLJXHDVWKHQLDZHLJKWORVVDQGXQH[SODLQHG
FRQVWLWXWLRQDOV\PSWRPV
&RQVLGHUFRQVXOWDWLRQZLWKDQHQGRFULQRORJLVWLIDQDEQRUPDOLW\LVGHWHFWHG
3QHXPRQLWLV
$OOSDWLHQWVSUHVHQWLQJZLWKQHZRUZRUVHQHGSXOPRQDU\V\PSWRPVRU
VLJQVVXFKDVDQXSSHUUHVSLUDWRU\LQIHFWLRQQHZFRXJKVKRUWQHVVRIEUHDWK
RUK\SR[LDVKRXOGEHDVVHVVHGE\KLJKUHVROXWLRQ&7&RQVLGHUSXOPRQDU\
IXQFWLRQWHVWLQFOXGLQJ'/&2
5DGLRJUDSKLFDSSHDUDQFHLVRIWHQQRQVSHFLILF'HSHQGLQJRQWKHORFDWLRQ
RIWKHDEQRUPDOLW\EURQFKRVFRS\DQGEURQFKRDOYHRODUODYDJHRUOXQJ
ELRSV\PD\EHFRQVLGHUHG&RQVXOWZLWKDUHVSLUDWRU\PHGLFLQHSK\VLFLDQ
IRUFDVHVRIXQFHUWDLQFDXVH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
,PPXQHUHODWHG7R[LFLW\
'LDJQRVWLF(YDOXDWLRQ*XLGHOLQH
1HXURORJLFDO7R[LFLW\
3HUIRUPDFRPSUHKHQVLYHQHXURORJLFDOH[DPLQDWLRQDQGEUDLQ05,IRUDOO
&16V\PSWRPVUHYLHZDOFRKROKLVWRU\DQGRWKHUPHGLFDWLRQV&RQGXFWD
GLDEHWLFVFUHHQDQGDVVHVVEORRG%IRODWH+,9VWDWXV7)7VDQG
FRQVLGHUDXWRLPPXQHVHURORJ\&RQVLGHUWKHQHHGIRUEUDLQVSLQH
05,05$DQGQHUYHFRQGXFWLRQVWXG\IRUSHULSKHUDOQHXURSDWK\&RQVXOW
ZLWKDQHXURORJLVWLIWKHUHDUHDEQRUPDOILQGLQJV
&ROLWLV
5HYLHZGLHWDU\LQWDNHDQGH[FOXGHVWHDWRUUKHD&RQVLGHUFRPSUHKHQVLYH
WHVWLQJLQFOXGLQJWKHIROORZLQJ)%&8(&/)7V&537)7VVWRRO
PLFURVFRS\DQGFXOWXUHYLUDO3&5&ORVWULGLXPGLIILFLOHWR[LQ
FU\SWRVSRULGLDGUXJUHVLVWDQWRUJDQLVP
,QFDVHRIDEGRPLQDOGLVFRPIRUWFRQVLGHULPDJLQJHJ;UD\&7VFDQ,ID
SDWLHQWH[SHULHQFHVEOHHGLQJSDLQRUGLVWHQVLRQFRQVLGHUFRORQRVFRS\ZLWK
ELRSV\DQGVXUJLFDOLQWHUYHQWLRQDVDSSURSULDWH
(\H'LVRUGHUV
,ISDWLHQWVH[SHULHQFHDFXWHQHZRQVHWRUZRUVHQLQJH\HLQIODPPDWLRQ
EOXUUHGYLVLRQRURWKHUYLVXDOGLVWXUEDQFHUHIHUWKHSDWLHQWXUJHQWO\WRDQ
RSKWKDOPRORJLVWIRUHYDOXDWLRQDQGPDQDJHPHQW
+HSDWLWLV
&KHFN$/7$67WRWDOELOLUXELQ,15DOEXPLQWKHIUHTXHQF\ZLOOGHSHQG
RQVHYHULW\RIWKH$(HJGDLO\LIJUDGHHYHU\GD\VLIJUDGHXQWLO
UHFRYHULQJ5HYLHZPHGLFDWLRQVHJVWDWLQVDQWLELRWLFVDQGDOFRKRO
KLVWRU\3HUIRUPOLYHUVFUHHQLQFOXGLQJ+HSDWLWLV$%&VHURORJ\+HSDWLWLV
(3&5DQGDVVHVVDQWL$1$60$/.06/$/3/&,LURQVWXGLHV
&RQVLGHULPDJLQJHJXOWUDVRXQGVFDQIRUPHWDVWDVHVRUWKURPERHPEROLVP
&RQVXOWZLWKDKHSDWRORJLVWDQGFRQVLGHUOLYHUELRSV\
5HQDOWR[LFLW\
5HYLHZK\GUDWLRQVWDWXVDQGPHGLFDWLRQKLVWRU\7HVWDQGFXOWXUHXULQH
&RQVLGHUUHQDOXOWUDVRXQGVFDQSURWHLQDVVHVVPHQWGLSVWLFNKRXUXULQH
FROOHFWLRQRUSKDVHFRQWUDVWPLFURVFRS\5HIHUWRQHSKURORJ\IRUIXUWKHU
PDQDJHPHQWDVVLVWDQFH
'HUPDWRORJ\
&RQVLGHURWKHUFDXVHVE\FRQGXFWLQJDSK\VLFDOH[DPLQDWLRQFRQVLGHU
GHUPDWRORJ\UHIHUUDOIRUVNLQELRSV\
-RLQWRUPXVFOH
LQIODPPDWLRQ
&RQGXFWPXVFXORVNHOHWDOKLVWRU\DQGSHUIRUPFRPSOHWHPXVFXORVNHOHWDO
H[DPLQDWLRQ&RQVLGHUMRLQW;UD\DQGRWKHULPDJLQJDVUHTXLUHGWRH[FOXGH
PHWDVWDWLFGLVHDVH3HUIRUPDXWRLPPXQHVHURORJ\DQGUHIHUWRUKHXPDWRORJ\
IRUIXUWKHUPDQDJHPHQWDVVLVWDQFH
)RUVXVSHFWHGP\RVLWLVUKDEGRP\RO\VLVP\DVWKHQLDLQFOXGH&.(65
&53WURSRQLQDQGFRQVLGHUDPXVFOHELRSV\
0\RFDUGLWLV
3HUIRUP(&*HFKRFDUGLRJUDP&.&.0%WURSRQLQ,DQGRU7DQG
UHIHUWRDFDUGLRORJLVW
$EEUHYLDWLRQV$(DGYHUVHHYHQW$/7DODQLQHDPLQRWUDQVIHUDVH$1$DQWLQXFOHDUDQWLERG\$67DVSDUWDWH
DPLQRWUDQVIHUDVH&.FUHDWLQHNLQDVH&.0%FUHDWLQHNLQDVHFDUGLDFPXVFOHLVRHQ]\PH&16FHQWUDOQHUYRXV
V\VWHP&53&UHDFWLYHSURWHLQ&7FRPSXWHGWRPRJUDSK\'/&2GLIIXVLQJFDSDFLW\IRUFDUERQPRQR[LGH(&*
HOHFWURFDUGLRJUDP(65HU\WKURF\WHVHGLPHQWDWLRQUDWH)%&IXOOEORRGFRXQW+,9KXPDQLPPXQRGHILFLHQF\YLUXV
,15LQWHUQDWLRQDOQRUPDOL]HGUDWLR/&,OLYHUF\VWROLFDQWLJHQ/)7OLYHUIXQFWLRQWHVW/.0OLYHUNLGQH\PLFURVRPDO
DQWLERG\/3OLYHUSDQFUHDVDQWLJHQ05$PDJQHWLFUHVRQDQFHDQJLRJUDP05,PDJQHWLFUHVRQDQFHLPDJLQJ3&5
SRO\PHUDVHFKDLQUHDFWLRQ6/$VROXEOHOLYHUDQWLJHQ60$VPRRWKPXVFOHDQWLERG\7WK\UR[LQH7)7WK\URLG
IXQFWLRQWHVWV76+WK\URLGVWLPXODWLQJKRUPRQH8(&XUHDHOHFWURO\WHVDQGFUHDWLQLQH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
7UHDWPHQWRI,PPXQHUHODWHG$GYHUVH(YHQWV
x
,PPXQHUHODWHG$(VFDQHVFDODWHTXLFNO\6WXG\WUHDWPHQWLQWHUUXSWLRQFORVHPRQLWRULQJWLPHO\
GLDJQRVWLFZRUNXSDQGWUHDWPHQWLQWHUYHQWLRQDVDSSURSULDWHZLWKSDWLHQWVLVUHTXLUHG
x
,PPXQHUHODWHG$(VVKRXOGLPSURYHSURPSWO\DIWHULQWURGXFWLRQRILPPXQRVXSSUHVVLYHWKHUDS\,I
WKLVGRHVQRWRFFXUUHYLHZWKHGLDJQRVLVVHHNIXUWKHUVSHFLDOLVWDGYLFHDQGFRQWDFWWKHVWXG\PHGLFDO
PRQLWRU
x
)RUVRPHJUDGHWR[LFLWLHVWKDWUHVROYHTXLFNO\UHFKDOOHQJHZLWKVWXG\GUXJPD\EHFRQVLGHUHGLI
WKHUHLVHYLGHQFHRIDFOLQLFDOUHVSRQVHWRVWXG\WUHDWPHQWDIWHUFRQVXOWDWLRQZLWKWKHVWXG\PHGLFDO
PRQLWRU
x
6WHURLGGRVDJHVLQWKHWDEOHEHORZDUHIRURUDORULQWUDYHQRXVPHWK\OSUHGQLVRORQH(TXLYDOHQW
GRVDJHVRIRWKHUFRUWLFRVWHURLGVFDQEHVXEVWLWXWHG)RUVWHURLGUHIUDFWRU\LU$(VFRQVLGHUXVHRI
VWHURLGVSDULQJDJHQWVHJP\FRSKHQRODWHPRIHWLO>00)@
x
&RQVLGHUSURSK\ODFWLFDQWLELRWLFVIRURSSRUWXQLVWLFLQIHFWLRQVLIWKHSDWLHQWLVUHFHLYLQJORQJWHUP
LPPXQRVXSSUHVVLYHWKHUDS\

$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
7K\URLG
'LVRUGHUV

$V\PSWRPDWLF7)7
DEQRUPDOLW\RUPLOG
V\PSWRPV

5HSODFHWK\UR[LQHLIK\SRWK\URLG
XQWLO76+7OHYHOVUHWXUQWR
QRUPDOUDQJH
7K\URWR[LFSDWLHQWVVKRXOGEH
UHIHUUHGWRDQHQGRFULQRORJLVW,Q
FDVHVZLWKV\VWHPLFV\PSWRPV
ZLWKKROGVWXG\WUHDWPHQWWUHDWZLWK
DEHWDEORFNHUDQGFRQVLGHURUDO
SUHGQLVRORQHPJNJGD\IRU
WK\URLGSDLQ7DSHUFRUWLFRVWHURLGV
RYHUZHHNV0RQLWRUWK\URLG
IXQFWLRQUHJDUGLQJWKHQHHGIRU
KRUPRQHUHSODFHPHQW
&RQWLQXHVWXG\WUHDWPHQWRU
ZLWKKROGWUHDWPHQWLQFDVHV
ZLWKV\VWHPLFV\PSWRPV

6HYHUHV\PSWRPV
KRVSLWDOL]DWLRQ
UHTXLUHG
5HIHUSDWLHQWWRDQHQGRFULQRORJLVW
,IK\SRWK\URLGUHSODFHZLWK
WK\UR[LQHJNJGD\IRUWKH
HOGHUO\RUWKRVHZLWKFRPRUELGLWLHV
WKHVXJJHVWHGVWDUWLQJGRVHLV
JNJGD\$GGRUDOSUHGQLVRORQH
PJNJGD\IRUWK\URLGSDLQ
7K\URWR[LFSDWLHQWVUHTXLUH
WUHDWPHQWZLWKDEHWDEORFNHUDQG
PD\UHTXLUHFDUELPD]ROHXQWLO
WK\URLGLWLVUHVROYHV
+ROGVWXG\WUHDWPHQWUHVXPH
ZKHQUHVROYHGLPSURYHGWR
JUDGH


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
+\SRSK\VLWLV

0LOGPRGHUDWH
V\PSWRPV
5HIHUSDWLHQWWRDQHQGRFULQRORJLVW
IRUKRUPRQHUHSODFHPHQW$GGRUDO
SUHGQLVRORQHPJNJGD\IRU
SDWLHQWVZLWKSLWXLWDU\
LQIODPPDWLRQ7DSHUFRUWLFRVWHURLGV
RYHUDWOHDVWPRQWK,IWKHUHLVQR
LPSURYHPHQWLQKRXUVWUHDWDV
JUDGH7DSHUFRUWLFRVWHURLGV
RYHUDWOHDVWPRQWK
&RQWLQXHVWXG\WUHDWPHQW

6HYHUHRU
OLIHWKUHDWHQLQJ
V\PSWRPV
5HIHUSDWLHQWWRDQHQGRFULQRORJLVW
IRUDVVHVVPHQWDQGWUHDWPHQW
,QLWLDWHSXOVH,9
PHWK\OSUHGQLVRORQHPJNJIRU
SDWLHQWVZLWKKHDGDFKHYLVXDO
GLVWXUEDQFHGXHWRSLWXLWDU\
LQIODPPDWLRQ&RQYHUWWRRUDO
SUHGQLVRORQHDQGWDSHURYHUDWOHDVW
PRQWK0DLQWDLQKRUPRQH
UHSODFHPHQWDFFRUGLQJWR
HQGRFULQRORJ\DGYLFH0DLQWDLQ
KRUPRQHUHSODFHPHQWDFFRUGLQJWR
HQGRFULQRORJ\DGYLFH
+ROGVWXG\WUHDWPHQWIRU
SDWLHQWVZLWKKHDGDFKHYLVXDO
GLVWXUEDQFHGXHWRSLWXLWDU\
LQIODPPDWLRQXQWLO
UHVROYHGLPSURYHGWRJUDGH
RUOHVV'LVFRQWLQXDWLRQLV
XVXDOO\QRWQHFHVVDU\
3QHXPRQLWLV

5DGLRJUDSKLFFKDQJHV
RQO\
0RQLWRUV\PSWRPVHYHU\GD\V
,IDSSHDUDQFHZRUVHQVWUHDWDV
JUDGH
&RQVLGHUKROGLQJVWXG\
WUHDWPHQWXQWLODSSHDUDQFH
LPSURYHVDQGFDXVHLV
GHWHUPLQHG

6\PSWRPDWLF
H[HUWLRQDO
EUHDWKOHVVQHVV
&RPPHQFHDQWLELRWLFVLILQIHFWLRQ
VXVSHFWHG$GGRUDOSUHGQLVRORQH
PJNJGD\LI
V\PSWRPVDSSHDUDQFHSHUVLVWIRU
KRXUVRUZRUVHQ&RQVLGHU
3QHXPRF\VWLVLQIHFWLRQSURSK\OD[LV
7DSHUFRUWLFRVWHURLGVRYHUDWOHDVW
ZHHNV
&RQVLGHUSURSK\OD[LVIRUDGYHUVH
VWHURLGHIIHFWVHJEORRGJOXFRVH
PRQLWRULQJYLWDPLQ'FDOFLXP
VXSSOHPHQW
+ROGVWXG\WUHDWPHQW
5HWUHDWPHQWLVDFFHSWDEOHLI
V\PSWRPVUHVROYHFRPSOHWHO\
RUDUHFRQWUROOHGRQ
SUHGQLVRORQHPJGD\
'LVFRQWLQXHVWXG\WUHDWPHQWLI
V\PSWRPVSHUVLVWZLWK
FRUWLFRVWHURLGWUHDWPHQW

6HYHUHRU
OLIHWKUHDWHQLQJ
V\PSWRPV
%UHDWKOHVVDWUHVW
$GPLWWRDKRVSLWDODQGLQLWLDWH
WUHDWPHQWZLWK,9
PHWK\OSUHGQLVRORQHPJNJGD\
,IWKHUHLVQRLPSURYHPHQWRU
ZRUVHQLQJDIWHUKRXUVDGG
LQIOL[LPDEPJNJLIQRKHSDWLF
LQYROYHPHQW&RQYHUWWRRUDO
SUHGQLVRORQHDQGWDSHURYHUDWOHDVW
PRQWKV&RYHUZLWKHPSLULF
DQWLELRWLFVDQGFRQVLGHUSURSK\OD[LV
IRU3QHXPRF\VWLVLQIHFWLRQDQG
RWKHUDGYHUVHVWHURLGHIIHFWVHJ
'LVFRQWLQXHVWXG\WUHDWPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
EORRGJOXFRVHPRQLWRULQJYLWDPLQ
'FDOFLXPVXSSOHPHQW
1HXURORJLFDO
7R[LFLW\

0LOGV\PSWRPV

&RQWLQXHVWXG\WUHDWPHQW

0RGHUDWHV\PSWRPV
7UHDWZLWKRUDOSUHGQLVRORQH
PJNJGD\7DSHURYHUDW
OHDVWZHHNV2EWDLQQHXURORJ\
FRQVXOWDWLRQ
+ROGVWXG\WUHDWPHQWUHVXPH
ZKHQUHVROYHGLPSURYHGWR
JUDGH

6HYHUHOLIHWKUHDWHQLQJ
,QLWLDWHWUHDWPHQWZLWKRUDO
SUHGQLVRORQHRU,9
PHWK\OSUHGQLVRORQHPJNJGD\
GHSHQGLQJRQV\PSWRPV7DSHU
FRUWLFRVWHURLGVRYHUDWOHDVW
ZHHNV
&RQVLGHUD]DWKLRSULQH00)
F\FORVSRULQHLIQRUHVSRQVHZLWKLQ
KRXUV
'LVFRQWLQXHVWXG\WUHDWPHQW
&ROLWLV'LDUUKHD

0LOGV\PSWRPV
OLTXLGVWRROVSHU
GD\RYHUEDVHOLQHDQG
IHHOLQJZHOO
6\PSWRPDWLFPDQDJHPHQWIOXLGV
ORSHUDPLGHDYRLGKLJKILEHUODFWRVH
GLHW
,IJUDGHSHUVLVWVIRU!GD\V
PDQDJHDVDJUDGHHYHQW
&RQWLQXHVWXG\WUHDWPHQW

0RGHUDWHV\PSWRPV
OLTXLGVWRROVSHU
GD\RYHUEDVHOLQHRU
DEGRPLQDOSDLQRU
EORRGLQVWRRORU
QDXVHDRUQRFWXUQDO
HSLVRGHV
2UDOSUHGQLVRORQHPJNJGD\
QRQHQWHULFFRDWHG
'RQRWZDLWIRUDQ\GLDJQRVWLFWHVWV
WRVWDUWWUHDWPHQW7DSHUVWHURLGV
RYHUZHHNVFRQVLGHUHQGRVFRS\
LIV\PSWRPVDUHUHFXUULQJ
+ROGVWXG\WUHDWPHQWUHVXPH
ZKHQUHVROYHGLPSURYHGWR
EDVHOLQHJUDGH

6HYHUH
V\PSWRPV!OLTXLG
VWRROVSHUGD\RYHU
EDVHOLQHRULIHSLVRGLF
ZLWKLQKRXURIHDWLQJ
,QLWLDWH,9PHWK\OSUHGQLVRORQH
PJNJGD\
&RQYHUWWRRUDOSUHGQLVRORQHDQG
WDSHURYHUDWOHDVWZHHNV
&RQVLGHUSURSK\OD[LVIRUDGYHUVH
VWHURLGHIIHFWVHJEORRGJOXFRVH
PRQLWRULQJYLWDPLQ'FDOFLXP
VXSSOHPHQW
,IQRLPSURYHPHQWLQKRXUVRU
V\PSWRPVZRUVHQFRQVLGHU
LQIOL[LPDEPJNJLIQR
SHUIRUDWLRQVHSVLV7%KHSDWLWLV
1<+$JUDGH,,,,9&+)RURWKHU
LPPXQRVXSSUHVVLYHWUHDWPHQW
00)RUWDFUROLPXV
&RQVXOWJDVWURHQWHURORJLVWWR
FRQGXFWFRORQRVFRS\
VLJPRLGRVFRS\
+ROGVWXG\WUHDWPHQW
UHWUHDWPHQWPD\EHFRQVLGHUHG
ZKHQUHVROYHGLPSURYHGWR
EDVHOLQHJUDGHDQGDIWHU
GLVFXVVLRQZLWKWKHVWXG\
PHGLFDOPRQLWRU

/LIHWKUHDWHQLQJ
V\PSWRPV
'LVFRQWLQXHVWXG\WUHDWPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
6NLQUHDFWLRQV

6NLQUDVKZLWKRU
ZLWKRXWV\PSWRPV
%6$
$YRLGVNLQLUULWDQWVDQGVXQ
H[SRVXUHWRSLFDOHPROOLHQWV
UHFRPPHQGHG

&RQWLQXHVWXG\WUHDWPHQW

5DVKFRYHUV
RI%6$
$YRLGVNLQLUULWDQWVDQGVXQ
H[SRVXUHWRSLFDOHPROOLHQWV
UHFRPPHQGHG
7RSLFDOVWHURLGVPRGHUDWHVWUHQJWK
FUHDPRQFHDGD\RUSRWHQWFUHDP
WZLFHDGD\RUDORUWRSLFDO
DQWLKLVWDPLQHVIRULWFK&RQVLGHUD
VKRUWFRXUVHRIRUDOVWHURLGV
&RQWLQXHVWXG\WUHDWPHQW

5DVKFRYHUV!
%6$RUJUDGHZLWK
VXEVWDQWLDOV\PSWRPV
$YRLGVNLQLUULWDQWVDQGVXQ
H[SRVXUHWRSLFDOHPROOLHQWV
UHFRPPHQGHG
,QLWLDWHVWHURLGVDVIROORZVEDVHGRQ
FOLQLFDOMXGJHPHQW
x
)RUPRGHUDWHV\PSWRPVRUDO
SUHGQLVRORQHPJNJGD\
IRUGD\VWKHQWDSHURYHU
ZHHNV
x
)RUVHYHUHV\PSWRPV,9
PHWK\OSUHGQLVRORQH
PJNJGD\FRQYHUWWR
RUDOSUHGQLVRORQHDQGWDSHU
RYHUDWOHDVWZHHNV
+ROGVWXG\WUHDWPHQW
5HWUHDWZKHQ$(LVUHVROYHGRU
LPSURYHGWRPLOGUDVKJUDGH
DIWHUGLVFXVVLRQZLWKWKH
VWXG\PHGLFDOPRQLWRU



6NLQVORXJKLQJ!
%6$ZLWKDVVRFLDWHG
V\PSWRPVHJ
HU\WKHPDSXUSXUD
HSLGHUPDOGHWDFKPHQW

,QLWLDWH,9PHWK\OSUHGQLVRORQH
PJNJGD\&RQYHUWWRRUDO
SUHGQLVRORQHDQGWDSHURYHUDWOHDVW
ZHHNV
$GPLWWRDKRVSLWDODQGVHHNXUJHQW
GHUPDWRORJ\UHYLHZ
'LVFRQWLQXHVWXG\WUHDWPHQW

+HSDWLWLV

$/7RU$67!8/1
WR;8/1
&KHFN/)7VZLWKLQZHHNDQG
EHIRUHWKHQH[WGRVHFKHFN/)7VWR
YHULI\WKDWWKHUHKDVEHHQQR
ZRUVHQLQJ
,I/)7VDUHZRUVHQLQJUHFKHFN
HYHU\KRXUVXQWLO
LPSURYHPHQWLVVHHQ
&RQWLQXHVWXG\WUHDWPHQWLI
/)7VDUHXQFKDQJHGRU
LPSURYLQJ
+ROGVWXG\WUHDWPHQWLI/)7V
DUHZRUVHQLQJXQWLO
LPSURYHPHQWLVVHHQ


$/7RU$67
;8/1
5HFKHFN/)7VZLWKLQKRXUV
)RUSHUVLVWHQW$/7$67HOHYDWLRQ
FRQVLGHURUDOSUHGQLVRORQH
PJNJGD\IRUGD\VWKHQWDSHU
RYHUZHHNV
)RUULVLQJ$/7$67VWDUWRUDO
SUHGQLVRORQHPJNJGD\DQGWDSHU
RYHUZHHNVUHHVFDODWHGRVHLI
/)7VZRUVHQGHSHQGLQJRQFOLQLFDO
MXGJHPHQW
+ROGVWXG\WUHDWPHQW
WUHDWPHQWPD\EHUHVXPHG
ZKHQUHVROYHGLPSURYHGWR
EDVHOLQHJUDGHDQG
SUHGQLVRORQHWDSHUHGWR
PJ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW

$/7RU$67
;8/1
$/7$67,8/DQGQRUPDO
ELOLUXELQ,15DOEXPLQ,QLWLDWHRUDO
SUHGQLVRORQHPJNJDQGWDSHU
RYHUDWOHDVWZHHNV
$/7$67!,8/RUUDLVHG
ELOLUXELQ,15ORZDOEXPLQ,QLWLDWH
,9PHWK\OSUHGQLVRORQH
PJNJGD\:KHQ/)7VLPSURYH
WRJUDGHRUORZHUFRQYHUWWRRUDO
SUHGQLVRORQHDQGWDSHURYHUDWOHDVW
ZHHNV
+ROGVWXG\WUHDWPHQWXQWLO
LPSURYHGWREDVHOLQHJUDGH
UHLQWURGXFHRQO\DIWHU
GLVFXVVLRQZLWKWKHVWXG\
PHGLFDOPRQLWRU


$/7RU$67
!;8/1
,QLWLDWH,9PHWK\OSUHGQLVRORQH
PJNJGD\&RQYHUWWRRUDO
SUHGQLVRORQHDQGWDSHURYHUDWOHDVW
ZHHNV
'LVFRQWLQXHVWXG\WUHDWPHQW
:RUVHQLQJ/)7VGHVSLWHVWHURLGV
ā,IRQRUDOSUHGQLVRORQHFKDQJHWRSXOVHG,9PHWK\OSUHGQLVRORQH
ā,IRQ,9DGGP\FRSKHQRODWHPRIHWLO00)PJWZLFHDGD\
ā,IZRUVHQVRQ00)FRQVLGHUDGGLWLRQRIWDFUROLPXV
'XUDWLRQDQGGRVHRIVWHURLGUHTXLUHGZLOOGHSHQGRQVHYHULW\RIHYHQW
1HSKULWLV

&UHDWLQLQH
;EDVHOLQHRU
!8/1WR;8/1
5HSHDWFUHDWLQLQHZHHNO\
,IV\PSWRPVZRUVHQPDQDJHDVSHU
FULWHULDEHORZ
&RQWLQXHVWXG\WUHDWPHQW


&UHDWLQLQH
!;EDVHOLQH
RU!;8/1

(QVXUHK\GUDWLRQDQGUHYLHZ
FUHDWLQLQHLQKRXUVLIQRW
LPSURYLQJFRQVLGHUFUHDWLQLQH
FOHDUDQFHPHDVXUHPHQWE\KRXU
XULQHFROOHFWLRQ'LVFXVVZLWK
QHSKURORJLVWWKHQHHGIRUNLGQH\
ELRSV\
,IDWWULEXWHGWRVWXG\GUXJLQLWLDWH
RUDOSUHGQLVRORQHPJNJDQG
WDSHURYHUDWOHDVWZHHNV
5HSHDWFUHDWLQLQH8	(HYHU\
KRXUV
+ROGVWXG\WUHDWPHQW
,IQRWDWWULEXWHGWRGUXJ
WR[LFLW\UHVWDUWWUHDWPHQW
,IDWWULEXWHGWRVWXG\GUXJDQG
UHVROYHGLPSURYHGWREDVHOLQH
JUDGH5HVWDUWVWXG\GUXJLI
WDSHUHGWRPJ
SUHGQLVRORQH

&UHDWLQLQH
!;EDVHOLQHRU
!;8/1
+RVSLWDOL]HSDWLHQWIRUPRQLWRULQJ
DQGIOXLGEDODQFHUHSHDWFUHDWLQLQH
HYHU\KRXUVUHIHUWRD
QHSKURORJLVWDQGGLVFXVVQHHGIRU
ELRSV\,IZRUVHQLQJLQLWLDWH,9
PHWK\OSUHGQLVRORQHPJNJ
7DSHUFRUWLFRVWHURLGVRYHUDWOHDVW
ZHHNV
+ROGVWXG\WUHDWPHQWXQWLOWKH
FDXVHLVLQYHVWLJDWHG
,IVWXG\GUXJVXVSHFWHG
'LVFRQWLQXHVWXG\WUHDWPHQW

&UHDWLQLQH!;8/1
$VSHUJUDGHSDWLHQWVKRXOGEH
PDQDJHGLQDKRVSLWDOZKHUHUHQDO
UHSODFHPHQWWKHUDS\LVDYDLODEOH
'LVFRQWLQXHVWXG\WUHDWPHQW
'LDEHWHV
+\SHUJO\FHPLD

0RQLWRUFORVHO\DQGWUHDWDFFRUGLQJ
WRORFDOJXLGHOLQH&KHFNIRU&
SHSWLGHDQGDQWLERGLHVDJDLQVW
&RQWLQXHVWXG\WUHDWPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
)DVWLQJJOXFRVHYDOXH
8/1WRPJG/
8/1WRPPRO/
JOXWDPLFDFLGGHFDUER[\ODVHDQG
LVOHWFHOOVDUHUHFRPPHQGHG

)DVWLQJJOXFRVHYDOXH
PJG/
PPRO/
2EWDLQDUHSHDWEORRGJOXFRVHOHYHO
DWOHDVWHYHU\ZHHN0DQDJH
DFFRUGLQJWRORFDOJXLGHOLQH
&RQWLQXHVWXG\WUHDWPHQWRU
KROGWUHDWPHQWLI
K\SHUJO\FHPLDLVZRUVHQLQJ
5HVXPHWUHDWPHQWZKHQEORRG
JOXFRVHLVVWDELOL]HGDWEDVHOLQH
RUJUDGH

)DVWLQJJOXFRVHYDOXH
PJG/
±PPRO/
$GPLWSDWLHQWWRKRVSLWDODQGUHIHU
WRDGLDEHWRORJLVWIRUK\SHUJO\FHPLD
PDQDJHPHQW&RUWLFRVWHURLGVPD\
H[DFHUEDWHK\SHUJO\FHPLDDQG
VKRXOGEHDYRLGHG
+ROGVWXG\WUHDWPHQWXQWLO
SDWLHQWLVK\SHUJO\FHPLD
V\PSWRPIUHHDQGEORRG
JOXFRVHKDVEHHQVWDELOL]HGDW
EDVHOLQHRUJUDGH

)DVWLQJJOXFRVH
YDOXH!PJG/!
PPRO/
$GPLWSDWLHQWWRKRVSLWDODQG
LQVWLWXWHORFDOHPHUJHQF\GLDEHWHV
PDQDJHPHQW5HIHUWKHSDWLHQWWRD
GLDEHWRORJLVWIRULQVXOLQ
PDLQWHQDQFHDQGPRQLWRULQJ
2FXODU7R[LFLW\

$V\PSWRPDWLFH\H
H[DPWHVWDEQRUPDOLW\
&RQVLGHUDOWHUQDWLYHFDXVHVDQG
SUHVFULEHWRSLFDOWUHDWPHQWDV
UHTXLUHG
&RQWLQXHVWXG\WUHDWPHQW

$QWHULRUXYHLWLVRU
PLOGV\PSWRPV
5HIHUSDWLHQWWRDQRSKWKDOPRORJLVW
IRUDVVHVVPHQWDQGWRSLFDO
FRUWLFRVWHURLGWUHDWPHQW&RQVLGHUD
FRXUVHRIRUDOVWHURLGV
&RQWLQXHVWXG\WUHDWPHQWRU
KROGWUHDWPHQWLIV\PSWRPV
ZRUVHQRULIWKHUHDUH
V\PSWRPVRIYLVXDO
GLVWXUEDQFH

3RVWHULRUXYHLWLV
SDQXYHLWLVRU
VLJQLILFDQWV\PSWRPV
5HIHUSDWLHQWXUJHQWO\WRDQ
RSKWKDOPRORJLVW,QLWLDWHRUDO
SUHGQLVRORQHPJNJDQGWDSHU
RYHUDWOHDVWZHHNV
+ROGVWXG\WUHDWPHQWXQWLO
LPSURYHGWRJUDGH
UHLQWURGXFHRQO\DIWHU
GLVFXVVLRQZLWKWKHVWXG\
PHGLFDOPRQLWRU

%OLQGQHVVDWOHDVW
LQWKHDIIHFWHG
H\HV
,QLWLDWH,9PHWK\OSUHGQLVRORQH
PJNJGD\&RQYHUWWRRUDO
SUHGQLVRORQHDQGWDSHURYHUDWOHDVW
ZHHNV
'LVFRQWLQXHVWXG\WUHDWPHQW
3DQFUHDWLWLV

$V\PSWRPDWLFEORRG
WHVWDEQRUPDOLWLHV
0RQLWRUSDQFUHDWLFHQ]\PHV
&RQWLQXHVWXG\WUHDWPHQW

$EGRPLQDOSDLQ
QDXVHDDQGYRPLWLQJ
$GPLWWRKRVSLWDOIRUXUJHQW
PDQDJHPHQW,QLWLDWH,9
PHWK\OSUHGQLVRORQH
PJNJGD\&RQYHUWWRRUDO
SUHGQLVRORQHZKHQDP\ODVHOLSDVH
LPSURYHGWRJUDGHDQGWDSHURYHU
DWOHDVWZHHNV
+ROGVWXG\WUHDWPHQW
UHLQWURGXFHRQO\DIWHU
GLVFXVVLRQZLWKWKHVWXG\
PHGLFDOPRQLWRU

$FXWHDEGRPLQDOSDLQ
VXUJLFDOHPHUJHQF\
$GPLWWRKRVSLWDOIRUHPHUJHQF\
PDQDJHPHQWDQGDSSURSULDWH
UHIHUUDO
'LVFRQWLQXHVWXG\WUHDWPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
$UWKULWLV

0LOGSDLQZLWK
LQIODPPDWLRQ
VZHOOLQJ
0DQDJHPHQWSHUORFDOJXLGHOLQH
&RQWLQXHVWXG\WUHDWPHQW

0RGHUDWHSDLQZLWK
LQIODPPDWLRQ
VZHOOLQJOLPLWHG
LQVWUXPHQWDOILQH
PRWRUDFWLYLWLHV
0DQDJHPHQWDVSHUORFDOJXLGHOLQH
&RQVLGHUUHIHUULQJSDWLHQWWRD
UKHXPDWRORJLVW,IV\PSWRPV
ZRUVHQRQWUHDWPHQWPDQDJHDVD
JUDGHHYHQW
&RQWLQXHWUHDWPHQWRULI
V\PSWRPVFRQWLQXHZRUVHQ
KROGVWXG\WUHDWPHQWXQWLO
V\PSWRPVLPSURYHWREDVHOLQH
RUJUDGH

6HYHUHSDLQZLWK
LQIODPPDWLRQRU
SHUPDQHQWMRLQW
GDPDJHGDLO\OLYLQJ
DFWLYLW\OLPLWHG
5HIHUSDWLHQWXUJHQWO\WRD
UKHXPDWRORJLVWIRUDVVHVVPHQWDQG
PDQDJHPHQW,QLWLDWHRUDO
SUHGQLVRORQHPJNJDQGWDSHU
RYHUDWOHDVWZHHNV
+ROGVWXG\WUHDWPHQWXQOHVV
LPSURYHGWRJUDGH
UHLQWURGXFHRQO\DIWHU
GLVFXVVLRQZLWKWKHVWXG\
PHGLFDOPRQLWRU
0XFRVLWLV
VWRPDWLWLV

7HVWILQGLQJVRQO\RU
PLQLPDOV\PSWRPV
&RQVLGHUWRSLFDOWUHDWPHQWRU
DQDOJHVLDDVSHUORFDOJXLGHOLQH
&RQWLQXHVWXG\WUHDWPHQW

0RGHUDWHSDLQ
UHGXFHGRUDOLQWDNH
OLPLWHGLQVWUXPHQWDO
DFWLYLWLHV
$VSHUORFDOJXLGHOLQHWUHDWZLWK
DQDOJHVLFVWRSLFDOWUHDWPHQWVDQG
RUDOK\JLHQHFDUH(QVXUHDGHTXDWH
K\GUDWLRQ,IV\PSWRPVZRUVHQRU
WKHUHLVVHSVLVRUEOHHGLQJPDQDJH
DVJUDGH
&RQWLQXHVWXG\WUHDWPHQW

6HYHUHSDLQOLPLWHG
IRRGDQGIOXLGLQWDNH
GDLO\OLYLQJDFWLYLW\
OLPLWHG
$GPLWWRKRVSLWDOIRUDSSURSULDWH
PDQDJHPHQW,QLWLDWH,9
PHWK\OSUHGQLVRORQH
PJNJGD\&RQYHUWWRRUDO
SUHGQLVRORQHZKHQV\PSWRPV
LPSURYHWRJUDGHDQGWDSHURYHUDW
OHDVWZHHNV
+ROGVWXG\WUHDWPHQWXQWLO
LPSURYHGWRJUDGH

/LIHWKUHDWHQLQJ
FRPSOLFDWLRQVRU
GHK\GUDWLRQ
$GPLWWRKRVSLWDOIRUHPHUJHQF\
FDUH&RQVLGHU,9FRUWLFRVWHURLGVLI
QRWFRQWUDLQGLFDWHGE\LQIHFWLRQ
'LVFRQWLQXHVWXG\WUHDWPHQW
0\RVLWLV
5KDEGRP\RO\VLV

0LOGZHDNQHVV
ZLWKZLWKRXWSDLQ
3UHVFULEHDQDOJHVLFV
,I&.LVVLJQLILFDQWO\HOHYDWHGDQG
SDWLHQWKDVV\PSWRPVFRQVLGHURUDO
VWHURLGVDQGWUHDWDV*UDGH
&RQWLQXHVWXG\WUHDWPHQW

0RGHUDWHZHDNQHVV
ZLWKZLWKRXWSDLQ
,I&.LV;8/1RUZRUVHLQLWLDWH
RUDOSUHGQLVRORQHPJNJDQG
WDSHURYHUDWOHDVWZHHNV
+ROGVWXG\WUHDWPHQWXQWLO
LPSURYHGWRJUDGH

6HYHUHZHDNQHVV
OLPLWLQJVHOIFDUH
$GPLWWRKRVSLWDODQGLQLWLDWHRUDO
SUHGQLVRORQHPJNJ&RQVLGHU
EROXV,9PHWK\OSUHGQLVRORQHDQG
PJNJGD\PDLQWHQDQFHIRU
VHYHUHDFWLYLW\UHVWULFWLRQRU
G\VSKDJLD,IV\PSWRPVGRQRW
+ROGVWXG\WUHDWPHQWXQWLO
LPSURYHGWRJUDGH
'LVFRQWLQXHLIDQ\HYLGHQFHRI
P\RFDUGLDOLQYROYHPHQW


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$XWRLPPXQH
7R[LFLW\
*UDGH
7UHDWPHQW*XLGHOLQHV6XEMHFWWR
&OLQLFDO-XGJHPHQW
6WXG\'UXJ0DQDJHPHQW
LPSURYHDGGLPPXQRVXSSUHVVDQW
WKHUDS\7DSHURUDOVWHURLGVRYHUDW
OHDVWZHHNV
0\RFDUGLWLV

$V\PSWRPDWLFEXW
VLJQLILFDQWO\LQFUHDVHG
&.0%RULQFUHDVHG
WURSRQLQ25FOLQLFDOO\
VLJQLILFDQW
LQWUDYHQWULFXODU
FRQGXFWLRQGHOD\
,QLWLDWHFDUGLDFHYDOXDWLRQXQGHU
FORVHPRQLWRULQJZLWKUHSHDWVHUXP
WHVWLQJFRQVLGHUUHIHUUDOWRD
FDUGLRORJLVW
,IGLDJQRVLVRIP\RFDUGLWLVLV
FRQILUPHGWUHDWDV*UDGH
+ROGVWXG\WUHDWPHQW,ID
GLDJQRVLVRIP\RFDUGLWLVLV
FRQILUPHGSHUPDQHQWO\
GLVFRQWLQXHVWXG\WUHDWPHQWLQ
SDWLHQWVZLWKPRGHUDWHRU
VHYHUHV\PSWRPV3DWLHQWV
ZLWKQRV\PSWRPVRUPLOG
V\PSWRPVPD\QRWUHVWDUW
WLVOHOL]XPDEXQOHVVFDUGLDF
SDUDPHWHUVKDYHUHWXUQHGWR
EDVHOLQHDQGDIWHUGLVFXVVLRQ
ZLWKWKHVWXG\PHGLFDO
PRQLWRU


6\PSWRPVRQPLOG
PRGHUDWHH[HUWLRQ
$GPLWWRKRVSLWDODQGLQLWLDWHRUDO
SUHGQLVRORQHRU,9
PHWK\OSUHGQLVRORQHDW
PJNJGD\
&RQVXOWZLWKDFDUGLRORJLVWDQG
PDQDJHV\PSWRPVRIFDUGLDFIDLOXUH
DFFRUGLQJWRORFDOJXLGHOLQHV
,IQRLPPHGLDWHUHVSRQVHFKDQJHWR
SXOVHGGRVHVRI
PHWK\OSUHGQLVRORQHJGD\DQG
DGG00)LQIOL[LPDERUDQWL
WK\PRF\WHJOREXOLQ

6HYHUHV\PSWRPVZLWK
PLOGH[HUWLRQ

/LIHWKUHDWHQLQJ
$EEUHYLDWLRQV$(DGYHUVHHYHQW$/7DODQLQHDPLQRWUDQVIHUDVH$67DVSDUWDWHDPLQRWUDQVIHUDVH%6$ERG\VXUIDFH
DUHD&+)FKURQLFKHDUWIDLOXUH&.FUHDWLQHNLQDVH&.0%FUHDWLQHNLQDVHFDUGLDFPXVFOHLVRHQ]\PH,15
LQWHUQDWLRQDOQRUPDOL]HGUDWLR,9LQWUDYHQRXV/)7OLYHUIXQFWLRQWHVW00)P\FRSKHQRODWHPRIHWLO1<+$1HZ
<RUN+HDUW$VVRFLDWLRQ7WK\UR[LQH7%WXEHUFXORVLV7)7WK\URLGIXQFWLRQWHVW76+WK\URLGVWLPXODWLQJKRUPRQH
8	(XUHDDQGHOHFWURO\WHV8/1XSSHUOLPLWRIQRUPDO



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
0$1$*(0(172),1)86,215(/$7('5($&7,216
7UHDWPHQWPRGLILFDWLRQJXLGHOLQHVIRUVXVSHFWHGLQIXVLRQUHODWHGUHDFWLRQVGXHWR%*%$DUH
VXPPDUL]HGEHORZ
1&,&7&$(*UDGH
7UHDWPHQW0RGLILFDWLRQIRU%*%$
*UDGHRU

0LOGWUDQVLHQWUHDFWLRQLQIXVLRQLQWHUUXSWLRQ
QRWLQGLFDWHGLQWHUYHQWLRQQRWLQGLFDWHG
'HFUHDVH%*%$LQIXVLRQUDWHE\$Q\
ZRUVHQLQJLVFORVHO\PRQLWRUHG0HGLFDOPDQDJHPHQWDV
QHHGHG6XEVHTXHQWLQIXVLRQVVKRXOGEHJLYHQDIWHU
SUHPHGLFDWLRQDQGDWWKHUHGXFHGLQIXVLRQUDWH
*UDGH
7KHUDS\RULQIXVLRQLQWHUUXSWLRQLQGLFDWHGEXW
UHVSRQGVSURPSWO\WRV\PSWRPDWLFWUHDWPHQW
HJDQWLKLVWDPLQHV16$,'VQDUFRWLFV,9
IOXLGVSURSK\ODFWLFPHGLFDWLRQVLQGLFDWHGIRU
KRXUV
6WRSLQIXVLRQ,QIXVLRQPD\EHUHVXPHGDWRI
SUHYLRXVUDWHRQFHLQIXVLRQUHODWHGUHDFWLRQVKDVUHVROYHG
RUGHFUHDVHGWRDWOHDVWJUDGHLQVHYHULW\$Q\
ZRUVHQLQJLVFORVHO\PRQLWRUHG3URSHUPHGLFDO
PDQDJHPHQWVKRXOGEHLQVWLWXWHGDVGHVFULEHGEHORZ
6XEVHTXHQWLQIXVLRQVVKRXOGEHJLYHQDIWHU
SUHPHGLFDWLRQDQGDWWKHUHGXFHGLQIXVLRQUDWH
*UDGH
3URORQJHGHJQRWUDSLGO\UHVSRQVLYHWR
V\PSWRPDWLFPHGLFDWLRQDQGRUEULHI
LQWHUUXSWLRQRILQIXVLRQUHFXUUHQFHRI
V\PSWRPVIROORZLQJLQLWLDOLPSURYHPHQW
KRVSLWDOL]DWLRQLQGLFDWHGIRUFOLQLFDOVHTXHODH
,PPHGLDWHO\VWRSWKHLQIXVLRQ3URSHUPHGLFDO
PDQDJHPHQWVKRXOGEHLQVWLWXWHGDVGHVFULEHGEHORZ
7KHSDWLHQWVKRXOGEHZLWKGUDZQIURPVWXG\GUXJV
WUHDWPHQW
*UDGH
/LIHWKUHDWHQLQJFRQVHTXHQFHVXUJHQW
LQWHUYHQWLRQLQGLFDWHG
,PPHGLDWHO\VWRSWKHLQIXVLRQ3URSHUPHGLFDO
PDQDJHPHQWVKRXOGEHLQVWLWXWHGDVGHVFULEHGEHORZ
7KHSDWLHQWVKRXOGEHZLWKGUDZQIURPVWXG\GUXJ
WUHDWPHQW
+RVSLWDOL]DWLRQLVUHFRPPHQGHG
$EEUHYLDWLRQV,9LQWUDYHQRXV1&,&7&$(1DWLRQDO&DQFHU,QVWLWXWH&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH
(YHQWV16$,'QRQVWHURLGDODQWLLQIODPPDWRU\GUXJ

2QFHWKH%*%$LQIXVLRQUDWHKDVEHHQGHFUHDVHGE\RUVXVSHQGHGGXHWRDQLQIXVLRQUHODWHG
UHDFWLRQLWPXVWUHPDLQGHFUHDVHGIRUDOOVXEVHTXHQWLQIXVLRQVZLWKSUHPHGLFDWLRQ,IWKHSDWLHQWKDVD
VHFRQGLQIXVLRQUHODWHGUHDFWLRQ*UDGHRQWKHVORZHULQIXVLRQUDWHLQIXVLRQVKRXOGEHGLVFRQWLQXHGDQG
WKHSDWLHQWVKRXOGEHZLWKGUDZQIURP%*%$WUHDWPHQW
&7&$(*UDGHRULQIXVLRQUHDFWLRQ3URSHUPHGLFDOPDQDJHPHQWVKRXOGEHLQVWLWXWHGDVLQGLFDWHGSHU
W\SHRIWKHUHDFWLRQ7KLVLQFOXGHVEXWLVQRWOLPLWHGWRDQDQWLKLVWDPLQHHJGLSKHQK\GUDPLQHRUHTXLYDOHQW
DQWLS\UHWLFHJSDUDFHWDPRORUHTXLYDOHQWDQGLIFRQVLGHUHGLQGLFDWHGRUDORU,9JOXFRFRUWLFRLGV
HSLQHSKULQHEURFKRGLODWRUVDQGR[\JHQ,QWKHQH[WF\FOHSDWLHQWVVKRXOGUHFHLYHRUDOSUHPHGLFDWLRQZLWK
DQDQWLKLVWDPLQHHJGLSKHQK\GUDPLQHRUHTXLYDOHQWDQGDQDQWLS\UHWLFHJSDUDFHWDPRORUHTXLYDOHQWDQG
WKH\VKRXOGEHFORVHO\PRQLWRUHGIRUFOLQLFDOVLJQVDQGV\PSWRPVRIDQLQIXVLRQUHDFWLRQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
&7&$(*UDGHRULQIXVLRQUHDFWLRQ3URSHUPHGLFDOPDQDJHPHQWVKRXOGEHLQVWLWXWHGLPPHGLDWHO\DV
LQGLFDWHGSHUW\SHDQGVHYHULW\RIWKHUHDFWLRQ7KLVLQFOXGHVEXWLVQRWOLPLWHGWRRUDORU,9DQWLKLVWDPLQH
DQWLS\UHWLFJOXFRFRUWLFRLGVHSLQHSKULQHEURQFKRGLODWRUVDQGR[\JHQ


%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
&+521,&.,'1(<',6($6((3,'(0,2/2*<&2//$%25$7,21
&.'(3,(48$7,21
,QDGXOWVWKHPRVWZLGHO\XVHGHTXDWLRQVIRUHVWLPDWLQJJORPHUXODUILOWUDWLRQUDWH*)5IURPVHUXP
FUHDWLQLQHDUHWKH&KURQLF.LGQH\'LVHDVH(SLGHPLRORJ\&ROODERUDWLRQ&.'(3,HTXDWLRQDQGWKH
0RGLILFDWLRQRI'LHWLQ5HQDO'LVHDVH0'5'6WXG\HTXDWLRQ7KH1DWLRQDO.LGQH\'LVHDVH(GXFDWLRQ
3URJUDP1.'(3FDOFXODWRUVUHO\RQFUHDWLQLQHGHWHUPLQDWLRQVZKLFKDUHLVRWRSHGLOXWLRQPDVV
VSHFWURPHWU\,'06WUDFHDEOH$OOODERUDWRULHVVKRXOGEHXVLQJFUHDWLQLQHPHWKRGVFDOLEUDWHGWREH,'06
WUDFHDEOH
7KLV&.'(3,HTXDWLRQFDOFXODWRUVKRXOGEHXVHGZKHQ6FULVUHSRUWHGLQPJG/7KLVHTXDWLRQLV
UHFRPPHQGHGZKHQH*)5YDOXHVDERYHP/PLQPDUHGHVLUHG
*)5 îPLQ6FUțĮîPD[6FUț î$JHî>LIIHPDOH@î>LIEODFN@
ZKHUH
6FULVVHUXPFUHDWLQLQHLQPJG/
țLVIRUIHPDOHVDQGIRUPDOHV
ĮLVIRUIHPDOHVDQGIRUPDOHV
PLQLQGLFDWHVWKHPLQLPXPRI6FUțRUDQG
PD[LQGLFDWHVWKHPD[LPXPRI6FUțRU
7KHHTXDWLRQGRHVQRWUHTXLUHZHLJKWEHFDXVHWKHUHVXOWVDUHUHSRUWHGQRUPDOL]HGWRPERG\VXUIDFH
DUHDZKLFKLVDQDFFHSWHGDYHUDJHDGXOWVXUIDFHDUHD

7KHRQOLQHFDOFXODWRUIRU&.'(3,FDQEHIRXQGKHUH
KWWSVZZZQLGGNQLKJRYKHDOWKLQIRUPDWLRQFRPPXQLFDWLRQSURJUDPVQNGHSODERUDWRU\
HYDOXDWLRQJORPHUXODUILOWUDWLRQUDWHFDOFXODWRUV
 /HYH\$66WHYHQV/$6FKPLG&+HWDO$QHZHTXDWLRQWRHVWLPDWHJORPHUXODUILOWUDWLRQUDWH$QQ,QWHUQ0HG




%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
*8,'$1&(21'(),1,7,212)),567/,1(256(&21'/,1(
75($70(17
,QYHVWLJDWRUVHQUROOLQJSDWLHQWVLQWKLVVWXG\DUHSURYLGHGWKHIROORZLQJJXLGDQFHUHJDUGLQJWKHGHILQLWLRQRI
SULRUWKHUDS\(OLJLELOLW\RISDWLHQWVZKRKDYHUHFHLYHGWKHUDSLHVQRWPHHWLQJWKHFULWHULDRXWOLQHGEHORZ
VKRXOGEHGLVFXVVHGZLWKWKH%HL*HQHPHGLFDOPRQLWRU

7KHIROORZLQJFULWHULDGHILQHDQDFFHSWDEOHFRXUVHRIILUVWOLQHWKHUDS\
x
2[DOLSODWLQEDVHGFKHPRWKHUDS\VRUDIHQLEOHQYDWLQLEDQGRWKHULQYHVWLJDWLRQDODJHQWZLWKGHPRQVWUDWHG
HIILFDF\LQD3KDVHFOLQLFDOWULDO
x
3ULRUVRUDIHQLERUOHQYDWLQLEIRUDWOHDVWGD\VQRWQHFHVVDULO\FRQVHFXWLYHDQGFKHPRWKHUDS\IRUDW
OHDVWF\FOHEHIRUHGLVFRQWLQXLQJWKHWKHUDS\GXHWRUDGLRJUDSKLFRUV\PSWRPDWLFSURJUHVVLRQRU
LQWROHUDQFH
x
3URJUHVVLRQRQWUHDWPHQWZDVGHILQHGDVUDGLRJUDSKLFSURJUHVVLRQHJ5(&,67YRUV\PSWRPDWLF
SURJUHVVLRQGHILQHGDVDGHFUHDVHRI(&2*SHUIRUPDQFHVWDWXVIURPWRDQGRUGHYHORSPHQWRI
V\PSWRPDWLFGLVHDVHIURPDV\PSWRPDWLFGLVHDVH
x
,QWROHUDQFHZDVGHILQHGDVSHUVLVWHQFHRIWUHDWPHQWUHODWHG$(VRIDWOHDVWJUDGHGHVSLWHVXSSRUWLYH
WKHUDS\DQGRUSHUVLVWHQFHUHFXUUHQFHRI$(VDIWHUGRVHLQWHUUXSWLRQDQGUHGXFWLRQRIVRUDIHQLE

7KHIROORZLQJFULWHULDGHILQHDQDFFHSWDEOHFRXUVHRIWKHUDS\LQWKHVHFRQGOLQHVHWWLQJDQGEH\RQG
x
8VHRIUHJRUDIHQLEFDER]DQWLQLERWKHUDSSURYHGDJHQWVIRUWKHWUHDWPHQWRI+&&RURWKHU
LQYHVWLJDWLRQDODJHQWV
x
3DWLHQWVPXVWKDYHH[SHULHQFHGVDLGWKHUDS\IRUDWOHDVWGD\VQRWQHFHVVDULO\FRQVHFXWLYHEHIRUH
GLVFRQWLQXLQJWKHWKHUDS\GXHWRUDGLRJUDSKLFRUV\PSWRPDWLFSURJUHVVLRQRULQWROHUDQFHDVGHVFULEHG
DERYH
x
,QWROHUDQFHZDVGHILQHGDVSHUVLVWHQFHRIWUHDWPHQWUHODWHG$(VRIDWOHDVWJUDGHGHVSLWHVXSSRUWLYH
WKHUDS\DQGRUSHUVLVWHQFHUHFXUUHQFHRI$(VDIWHUGRVHLQWHUUXSWLRQDQGUHGXFWLRQRIVDLGWUHDWPHQW



%HL*HQH/WG
&21),'(17,$/
%*%$
$PHQGPHQW
-XQH

3DJHRI
$33(1',;
%$5&(/21$&/,1,&/,9(5&$1&(5%&/&67$*,1*
&/$66,),&$7,21
7KH%DUFHORQD&OLQLF/LYHU&DQFHU%&/&V\VWHPKDVEHHQZLGHO\YDOLGDWHGDQGLVWKHPRVWFRPPRQO\
XVHGVWDJLQJV\VWHPIRU+&&,WGHWHUPLQHVFDQFHUVWDJHDQGSDWLHQWSURJQRVLVEDVHGRQWXPRUEXUGHQ
VHYHULW\RIOLYHUGLVHDVHDQGWKHSDWLHQW¶VSHUIRUPDQFHVWDWXV
7KHVWDJLQJDFFRUGLQJWRWKH%&/&FODVVLILFDWLRQDVVLJQVSURJQRVHVEDVHGRQFOLQLFDODQGWXPRUSDUDPHWHUV
DQGLVVXPPDUL]HGDVIROORZV
%&/&6WDJHDE
9HU\HDUO\VWDJH

(DUO\VWDJH$
,QWHUPHGLDWH
VWDJH%
$GYDQFHGVWDJH&
7HUPLQDOVWDJH'
6LQJOHFP
&DUFLQRPDLQVLWX
&KLOG±3XJK$
(&2*

6LQJOHRU
QRGXOHV
FP
&KLOG±3XJK$%
(&2*
0XOWLQRGXODU
&KLOG±3XJK$%
(&2*
3RUWDOLQYDVLRQ
([WUDKHSDWLFVSUHDG
&KLOG±3XJK$%
(&2*
&KLOG±3XJK&
(&2*
D
%UXL[-5HLJ06KHUPDQ0(YLGHQFH%DVHG'LDJQRVLV6WDJLQJDQG7UHDWPHQWRI3DWLHQWV:LWK+HSDWRFHOOXODU
&DUFLQRPD*DVWURHQWHURORJ\
E /ORYHW-0%UX&%UXL[-3URJQRVLVRIKHSDWRFHOOXODUFDUFLQRPDWKH%&/&VWDJLQJFODVVLILFDWLRQ6HPLQ/LYHU
'LV±


SAP_001.pdf: 

%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/




67$7,67,&$/$1$/<6,63/$1
6WXG\3URWRFRO
1XPEHU
%*%$
6WXG\3URWRFRO
7LWOH
$3KDVH2SHQODEHO0XOWLFHQWHU6WXG\WR,QYHVWLJDWHWKH(IILFDF\
6DIHW\DQG3KDUPDFRNLQHWLFVRIWKH$QWL3'0RQRFORQDO$QWLERG\
%*%$ LQ 3DWLHQWV ZLWK 3UHYLRXVO\ 7UHDWHG +HSDWRFHOOXODU
8QUHVHFWDEOH&DUFLQRPD


'DWH
$SULO
9HUVLRQ























%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

6,*1$785(3$*(
$XWKRU









6LJQDWXUH
'DWHBBBBBBBBBBBBBB



$SSURYDO







6LJQDWXUH
'DWHBBBBBBBBBBBBBBBB






6LJQDWXUH
'DWHBBBBBBBBBBBBBBBB






6LJQDWXUH

'DWHBBBBBBBBBBBBBBBB






6LJQDWXUH

'DWHBBBBBBBBBBBBBBBB





%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

7$%/(2)&217(176
 
,1752'8&7,21
 
 
678'<29(59,(:
 
 
678'<2%-(&7,9(6
 
 
678'<(1'32,176
 
 
3ULPDU\(QGSRLQWV
 
 
6HFRQGDU\(QGSRLQWV
 
 
([SORUDWRU\(QGSRLQWV
 
 
6$03/(6,=(&216,'(5$7,21
 
 
67$7,67,&$/0(7+2'6
 
 
$QDO\VLV3RSXODWLRQV
 
 
'DWD$QDO\VLV*HQHUDO&RQVLGHUDWLRQV
 
 
'HILQLWLRQVDQG&RPSXWDWLRQV
 
 
&RQYHQWLRQV
 
 
+DQGOLQJRI0LVVLQJ'DWD
 
 
$GMXVWPHQWIRU&RYDULDWHV
 
 
0XOWLSOLFLW\$GMXVWPHQW
 
 
'DWD,QWHJULW\
 
 
3DWLHQW&KDUDFWHULVWLFV
 
 
3DWLHQW'LVSRVLWLRQ
 
 
3URWRFRO'HYLDWLRQV
 
 
'HPRJUDSKLFDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV
 
 
'LVHDVH+LVWRU\DQG&KDUDFWHULVWLFV
 
 
3ULRU$QWL&DQFHU7UHDWPHQW
 
 
3ULRUDQG&RQFRPLWDQW0HGLFDWLRQV
 
 
0HGLFDO+LVWRU\
 
 
(IILFDF\$QDO\VLV
 
 
3ULPDU\(IILFDF\(QGSRLQWV
 
 
6HFRQGDU\(IILFDF\(QGSRLQWV
 
 
6XEJURXS$QDO\VHV
 
 
6DIHW\$QDO\VHV
 
 
([WHQWRI([SRVXUH
 
 
$GYHUVH(YHQWV
 
 
/DERUDWRU\9DOXHV
 
 
9LWDO6LJQV
 
 
3K\VLFDO([DPLQDWLRQ
 
 
2SKWKDOPRORJLF([DPLQDWLRQ
 
 
(OHFWURFDUGLRJUDPV(&*
 
 
(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS(&2*
 
 
3KDUPDFRNLQHWLF$QDO\VHV
 
 
,PPXQRJHQLFLW\$QDO\VHV
 
 
%LRPDUNHU$QDO\VHV
 
 
$QDO\VHVRI+HDOWK5HODWHG4XDOLW\RI/LIH
 



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 
,17(5,0$1$/<6,6
 
 
&+$1*(6,17+(3/$11('$1$/<6,6
 
 
5()(5(1&(6
 
 
$33(1',;
 
 
,PSXWDWLRQRI0LVVLQJ3DUWLDOO\0LVVLQJ'DWHV
 
 
+HDOWK5HODWHG4XDOLW\RI/LIH
 
















%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

/,672)$%%5(9,$7,216$1''(),1,7,2162)7(506
$EEUHYLDWLRQ
7HUP
$'$
$QWLGUXJ$QWLERG\
$',
$FWXDO'RVH,QWHQVLW\
$(
$GYHUVH(YHQW
%&/&
%DUFHORQD&OLQLF/LYHU&DQFHU
%*%$
&RGHQDPHIRU0RQRFORQDO$QWLERG\%*%$WLVOHOL]XPDE
%,'
7ZLFHGDLO\
%0,
%RG\0DVV,QGH[
%25
%HVW2YHUDOO5HVSRQVH
&%5
&OLQLFDO%HQHILW5DWH
&,
&RQILGHQFH,QWHUYDO
&5
&RPSOHWH5HVSRQVH
&5)
&OLQLFDO5HSRUW)RUP
&7&$(
&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV
&WURXJK
0LQLPXP2EVHUYHG3ODVPD&RQFHQWUDWLRQ
'&5
'LVHDVH&RQWURO5DWH
'25
'XUDWLRQRIUHVSRQVH
(%57
([WHUQDO%HDP5DGLDWLRQ7KHUDS\
(&*
(OHFWURFDUGLRJUDP

(&2*
(DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS
H&5)
(OHFWURQLF&DVH5HSRUW)RUP
())
(IILFDF\(YDOXDEOH6HW
(4'
(XURSHDQ4XDOLW\RI/LIH'LPHQVLRQV
(257&4/4+&&
(XURSHDQ 2UJDQLVDWLRQ IRU 5HVHDUFK DQG 7UHDWPHQW RI &DQFHU
4XDOLW\ RI /LIH 4XHVWLRQQDLUH+HSDWRFHOOXODU &DUFLQRPD 
4XHVWLRQV
(257&4/4&
(XURSHDQ 2UJDQLVDWLRQ IRU 5HVHDUFK DQG 7UHDWPHQW RI &DQFHU
4XDOLW\RI/LIH4XHVWLRQQDLUH&RUH
)'$
)RRGDQG'UXJ$GPLQLVWUDWLRQ
+%9
+HSDWLWLV%9LUXV
+&&
+HSDWRFHOOXODU&DUFLQRPD
+&9
+HSDWLWLV&9LUXV
+54R/
+HDOWK5HODWHG4XDOLW\RI/LIH
LU$(
,PPXQH5HODWHG$GYHUVH(YHQW
,5&
,QGHSHQGHQW5HYLHZ&RPPLWWHH
,9
,QWUDYHQRXVO\
0HG'5$
0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
1&,&7&$(
1DWLRQDO &DQFHU ,QVWLWXWH &RPPRQ 7HUPLQRORJ\&ULWHULD IRU
$GYHUVH(YHQWV
255
2EMHFWLYH5HVSRQVH5DWH
26
2YHUDOO6XUYLYDO



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

3'
3URJUHVVLYH'LVHDVH
3'
3URJUDPPHG&HOO'HDWK
3'/
3URJUDP 'HDWK /LJDQG 3URJUDPHG 'HDWK 5HFHSWRU /LJDQG
3URJUDPHG'HDWK/LJDQG
3)6
3URJUHVVLRQ)UHH6XUYLYDO
3.
3KDUPDFRNLQHWLFV
35
3DUWLDO5HVSRQVH
37
3URWKURPELQ7LPHRU3UHIHUUHG7HUP
4:
2QFH(YHU\:HHNV
47F
47,QWHUYDO&RUUHFWHGIRU+HDUW5DWH
5',
5HODWLYH'RVH,QWHQVLW\
5(&,67
5HVSRQVH(YDOXDWLRQ&ULWHULDLQ6ROLG7XPRUV
6$(
6HULRXV$GYHUVH(YHQW
6$)
6DIHW\$QDO\VLV6HW
6$3
6WDWLVWLFDO$QDO\VLV3ODQ
6'
6WDEOH'LVHDVH6WDQGDUG'HYLDWLRQ
6,
6\VWHP,QWHUQDWLRQDO
62&
6\VWHP2UJDQ&ODVV
7$&(
7UDQVDUWHULDO&KHPRHPEROL]DWLRQ
7($(
7UHDWPHQW(PHUJHQW$GYHUVH(YHQW
7,/
7XPRULQILOWUDWLQJO\PSKRF\WHV
:%&
:KLWH%ORRG&HOO
:+2''
:RUOG+HDOWK2UJDQL]DWLRQ'UXJ'LFWLRQDU\




%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/


,1752'8&7,21
7KHSXUSRVHRIWKLVVWDWLVWLFDODQDO\VLVSODQ6$3LVWRGHVFULEHWKHSURFHGXUHVDQGWKHVWDWLVWLFDO
PHWKRGVWKDWZLOOEHXVHGWRDQDO\]HDQGUHSRUWUHVXOWVIRU%*%3URWRFRO$HQWLWOHG³$
3KDVH2SHQODEHO0XOWLFHQWHU6WXG\WR,QYHVWLJDWHWKH(IILFDF\6DIHW\DQG3KDUPDFRNLQHWLFV
RI WKH $QWL3' 0RQRFORQDO $QWLERG\ %*%$ LQ 3DWLHQWV ZLWK 3UHYLRXVO\ 7UHDWHG
+HSDWRFHOOXODU 8QUHVHFWDEOH &DUFLQRPD´ 7KH IRFXV RI WKLV 6$3 LV IRU WKH SODQQHG DQDO\VHV
VSHFLILHGLQWKHVWXG\SURWRFRODPHQGPHQWYHUVLRQGDWHG-XQH

678'<29(59,(:
6WXG\'HVLJQ
7KLVLVD3KDVHPXOWLFHQWHURSHQODEHOVWXG\LQDGXOWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&
$SSUR[LPDWHO\ SDWLHQWV ZLOO UHFHLYH WLVOHOL]XPDE %*%$  PJ LQWUDYHQRXVO\ ,9
HYHU\ZHHNV4:7KHVWXG\GHVLJQVFKHPDLVDVIROORZV










$IWHUFRPSOHWLQJDOO6FUHHQLQJDFWLYLWLHVSDWLHQWVFRQILUPHGE\WKHVSRQVRUWREHHOLJLEOHZLOO
UHFHLYHRSHQODEHOWUHDWPHQWZLWKWLVOHOL]XPDEXQWLOLQWROHUDEOHWR[LFLW\ZLWKGUDZDORILQIRUPHG
FRQVHQWRUWKHWLPHSRLQWDWZKLFKLQWKHRSLQLRQRIWKHLQYHVWLJDWRUWKHSDWLHQWLVQRORQJHU
EHQHILWLQJIURPVWXG\WKHUDS\ZKLFKHYHUVKRXOGRFFXUILUVW7UHDWPHQWEH\RQGLQLWLDOGLVHDVH
SURJUHVVLRQDVDVVHVVHGE\WKHLQYHVWLJDWRUSHU5(&,67YLVSHUPLWWHGSURYLGHGWKDWWKH
SDWLHQWPHHWVSURWRFROVSHFLILHGFULWHULD2IWKHSDWLHQWVDWOHDVWSDWLHQWVZLOOEHHQUROOHG
ZKRKDYHKDGQRPRUHWKDQOLQHRISULRUV\VWHPLFWKHUDS\DQGDWOHDVWSDWLHQWVZLOOEH
HQUROOHGZKRKDYHKDGDWOHDVWOLQHVRISULRUV\VWHPLFWKHUDS\
6WXG\$VVHVVPHQWV
5DGLRORJLFDODVVHVVPHQWRIWXPRUUHVSRQVHVWDWXVVKRXOGEHSHUIRUPHGHYHU\ZHHNVLQWKHILUVW
ZHHNVWKHQHYHU\ZHHNVWKHUHDIWHU7XPRUUHVSRQVHZLOOEHDVVHVVHGE\DQ,5&DQGE\
LQYHVWLJDWRUV3DWLHQWVZKRGLVFRQWLQXHVWXG\GUXJIRUUHDVRQVRWKHUWKDQGLVHDVHSURJUHVVLRQHJ
WR[LFLW\ZLOOFRQWLQXHWRXQGHUJRWXPRUDVVHVVPHQWVXQWLO GLVHDVHSURJUHVVLRQZLWKGUDZDO RI
FRQVHQWGHDWKRUVWDUWRIDQHZDQWLFDQFHUWKHUDS\ZKLFKHYHURFFXUVILUVW



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

3DWLHQWVZLOOEHHYDOXDWHGIRUDQ\$(VRFFXUULQJXSWRGD\VDIWHUWKHODVWGRVHRIVWXG\GUXJRU
LQLWLDWLRQ RI QHZ DQWLFDQFHU WKHUDS\ ZKLFKHYHU RFFXUV ILUVW DOO VHYHULW\ JUDGHV SHU 1DWLRQDO
&DQFHU,QVWLWXWH&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV>1&,&7&$(@YDQGDOO
LPPXQHUHODWHGDGYHUVHHYHQWVLU$(VRFFXUULQJXSWRGD\VDIWHUWKHODVWGRVHRIVWXG\GUXJ
UHJDUGOHVVRIZKHWKHURUQRWWKHSDWLHQWVWDUWVDQHZDQWLFDQFHUWKHUDS\$OOGUXJUHODWHG6$(V
ZLOOEHUHFRUGHGE\WKHLQYHVWLJDWRUDIWHUWUHDWPHQWGLVFRQWLQXDWLRQ

678'<2%-(&7,9(6
3ULPDU\
7RHYDOXDWHWKHHIILFDF\RI WLVOHOL]XPDEWKURXJK,QGHSHQGHQW5HYLHZ&RPPLWWHH,5&
DVVHVVHGREMHFWLYHUHVSRQVHUDWH255E\5HVSRQVH(YDOXDWLRQ&ULWHULDLQ6ROLG7XPRUV
5(&,67 9HUVLRQ Y LQ SUHYLRXVO\ WUHDWHG XQUHVHFWDEOH KHSDWRFHOOXODU FDUFLQRPD
+&&
6HFRQGDU\
x 7RDVVHVVWKHHIILFDF\RIWLVOHOL]XPDEWKURXJKGXUDWLRQRIUHVSRQVH'25SURJUHVVLRQ
IUHHVXUYLYDO3)6GLVHDVHFRQWUROUDWH'&5DQGFOLQLFDOEHQHILWUDWH&%5DVVHVVHGE\
,5&DQGRYHUDOOVXUYLYDO26
x 7RDVVHVVHIILFDF\RIWLVOHOL]XPDEWKURXJK255'253)6'&5DQG&%5DVVHVVHGE\
WKHLQYHVWLJDWRUV
x 7RDVVHVVWKHVDIHW\DQGWROHUDELOLW\RI WLVOHOL]XPDELQSDWLHQWVZLWKSUHYLRXVO\WUHDWHG
XQUHVHFWDEOH+&&
x 7R DVVHVV WKH KHDOWKUHODWHG TXDOLW\ RI OLIH +54R/ RI WLVOHOL]XPDE LQ SDWLHQWV ZLWK
SUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&
([SORUDWRU\
x 7RDVVHVVSRWHQWLDOSUHGLFWLYHELRPDUNHUV
x 7RFKDUDFWHUL]HWKH3.RIWLVOHOL]XPDE
x 7RDVVHVVKRVWLPPXQRJHQLFLW\WRWLVOHOL]XPDE

678'<(1'32,176

35,0$5<(1'32,176
2EMHFWLYH 5HVSRQVH 5DWH 255 GHILQHG DV FRPSOHWH UHVSRQVH &5 RU SDUWLDO UHVSRQVH 35
HYDOXDWHGE\,5&EDVHGRQ5(&,67YLQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&

6(&21'$5<(1'32,176
x '253)6'&5DQG&%5DVVHVVHGE\,5&DQG26
x 255'253)6'&5DQG&%5DVVHVVHGE\,QYHVWLJDWRUV
x 6DIHW\DQGWROHUDELOLW\DVVHVVPHQWRIDGYHUVHHYHQWV$(VVHULRXVDGYHUVHHYHQWV6$(V
SK\VLFDOH[DPLQDWLRQYLWDOVLJQVHOHFWURFDUGLRJUDP(&*DQGODERUDWRU\PHDVXUHPHQWV



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

x +54R/PHDVXUHGXVLQJ(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU
4XDOLW\ RI /LIH 4XHVWLRQQDLUH+HSDWRFHOOXODU &DUFLQRPD  4XHVWLRQV (257& 4/4
+&& LQGH[ VFRUH (XURSHDQ 2UJDQLVDWLRQ IRU 5HVHDUFK DQG 7UHDWPHQW RI &DQFHU
4XDOLW\RI/LIH4XHVWLRQQDLUH&RUH(257&4/4&LQGH[VFRUHDQGWKHOHYHO
YHUVLRQRIWKH(XURSHDQ4XDOLW\RI/LIH'LPHQVLRQDO4XHVWLRQQDLUH(4'/

(;3/25$725<(1'32,176
x 3UHGLFWLYH ELRPDUNHU IRU H[DPSOH SURJUDPPHG FHOO GHDWK SURWHLQ OLJDQG >3'/@
H[SUHVVLRQDQGJHQHH[SUHVVLRQLQWXPRUWLVVXH
x 3.6XPPDU\RISODVPDFRQFHQWUDWLRQVRIWLVOHOL]XPDE
x ,PPXQRJHQLFLW\ $VVHVVPHQWV RI LPPXQRJHQLFLW\ RI WLVOHOL]XPDE WR GHWHUPLQH WKH
LQFLGHQFHRIDQWLGUXJDQWLERGLHV$'$V

6$03/(6,=(&216,'(5$7,21
7KH 255 SHU ,5& LV DVVXPHG DV  LQ WKLV WULDO :LWK  SDWLHQWV WKH SRZHU LV  WR
GHPRQVWUDWHWKH255LQSDWLHQWVZLWKSUHYLRXVO\WUHDWHGXQUHVHFWDEOH+&&LVVWDWLVWLFDOO\KLJKHU
WKDQWKHKLVWRULFDOUDWHRILQDELQRPLDOH[DFWWHVWDWRQHVLGHGDOSKDOHYHO7KH&,
RI DQ REVHUYHG  255 LV   ZKHQ DSSUR[LPDWHO\  SUHYLRXVO\ WUHDWHG
XQUHVHFWDEOH+&&SDWLHQWVDUHHQUROOHG:LWKLQQGOLQHRUUGOLQHSOXVSDWLHQWVWKH&,RI
WKHVDPH255LVZKHQQ LQHDFKSRSXODWLRQ

67$7,67,&$/0(7+2'6

$1$/<6,63238/$7,216
7KH6DIHW\$QDO\VLV6HW6$)LQFOXGHVDOOSDWLHQWVZKRKDYHUHFHLYHG RQHRUPRUHGRVHVRI
WLVOHOL]XPDE7KLVZLOOEHWKHSULPDU\SRSXODWLRQIRUHIILFDF\ LQFOXGLQJ+54R/DQGVDIHW\
DQDO\VLV
7KH (IILFDF\ (YDOXDEOH $QDO\VLV 6HW ()) LQFOXGHV DOO SDWLHQWV LQ WKH6$) ZLWK PHDVXUDEOH
GLVHDVHDWEDVHOLQHSHU5(&,67ZKRKDGDWOHDVWRQHHYDOXDEOHSRVWEDVHOLQHWXPRUDVVHVVPHQW
XQOHVVGLVFRQWLQXHGGXHWRFOLQLFDOGLVHDVHSURJUHVVLRQRUGHDWKZLWKLQZHHNVDIWHUWKHILUVWGRVH
GDWH7KLVSRSXODWLRQZLOORQO\EHDSSOLHGLQVHQVLWLYLW\DQDO\VLVRIWKHSULPDU\HIILFDF\HQGSRLQW
255
7KH3.$QDO\VLV6HW3.LQFOXGHVDOOSDWLHQWVLQWKH6$)ZKRFRQWULEXWHGDWOHDVWSRVW
TXDQWLILDEOH3.VDPSOH

'$7$$1$/<6,6*(1(5$/&216,'(5$7,216
'DWDZLOOEHVXPPDUL]HGE\QXPEHURISULRUV\VWHPLFDQWLFDQFHUWKHUDS\/YV/DQGUHJLRQV
&KLQDDQG7DLZDQYV(XURSH



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 'HILQLWLRQVDQG&RPSXWDWLRQV
6WXG\GD\6WXG\GD\VZLOOEHFDOFXODWHGLQUHIHUHQFHWRWKHGDWHRIWKHILUVWGRVHRIVWXG\WUHDWPHQW
)RUDVVHVVPHQWVFRQGXFWHGRQRUDIWHUWKHGDWHRIWKHILUVWGRVHRIVWXG\WUHDWPHQWVWXG\GD\ZLOO
EHFDOFXODWHGDVDVVHVVPHQWGDWH±GDWHRIILUVWGRVHRIVWXG\WUHDWPHQW)RUDVVHVVPHQWV
FRQGXFWHG EHIRUH WKH GDWH RI WKH ILUVW GRVH RI VWXG\ WUHDWPHQW VWXG\ GD\ LV FDOFXODWHG DV
DVVHVVPHQWGDWH±GDWHRIILUVWGRVHRIVWXG\WUHDWPHQW7KHUHLVQRVWXG\GD\
,QWKHVLWXDWLRQZKHUHWKHHYHQWGDWHLVSDUWLDORUPLVVLQJWKHGDWHZLOODSSHDUSDUWLDORUPLVVLQJLQ
WKHOLVWLQJV6WXG\GD\DQGDQ\FRUUHVSRQGLQJGXUDWLRQVZLOOEHSUHVHQWHGEDVHGRQWKHLPSXWDWLRQ
UXOHVVSHFLILHGLQ$SSHQGL[
7UHDWPHQW GXUDWLRQ 7KH WUHDWPHQW GXUDWLRQ ZLOO EH FDOFXODWHG DV GDWH RI ODVW GRVH RI VWXG\
WUHDWPHQW±GDWHRIILUVWGRVHRIVWXG\WUHDWPHQWIRU4:GRVHUHJLPHQV
%DVHOLQH8QOHVVRWKHUZLVHVSHFLILHGDEDVHOLQHYDOXHLVGHILQHGDVWKHODVWQRQPLVVLQJYDOXH
FROOHFWHGEHIRUHWKHWLPHRIILUVWGRVHGDWH
$OOFDOFXODWLRQVDQGDQDO\VHVZLOOEHFRQGXFWHGXVLQJ6$6YHUVLRQRUKLJKHU. 
 &RQYHQWLRQV
8QOHVVRWKHUZLVHVSHFLILHGWKHIROORZLQJFRQYHQWLRQVZLOOEHDSSOLHGWRDOODQDO\VHV

x \HDU GD\V1XPEHURI\HDUVLVFDOFXODWHGDVGD\VURXQGHGXSWR
GHFLPDOGLJLW
x PRQWK GD\V1XPEHURIPRQWKVLVFDOFXODWHGDVGD\VURXQGHGXSWR
GHFLPDOGLJLW
x $JHLQ\HDUVZLOOEHFDOFXODWHGDVWKHLQWHJHUSDUWRIGDWHRILQIRUPHGFRQVHQW±GDWHRI
ELUWK
x 0LVVLQJHIILFDF\RUVDIHW\GDWDZLOOQRWEHLPSXWHGXQOHVVRWKHUZLVHVSHFLILHG
x )RUE\YLVLWREVHUYHGGDWDDQDO\VHVSHUFHQWDJHVZLOOEHFDOFXODWHGEDVHGRQWKHQXPEHURI
SDWLHQWVZLWKQRQPLVVLQJGDWDDVWKHGHQRPLQDWRUXQOHVVRWKHUZLVHVSHFLILHG
x )RUFRQWLQXRXVHQGSRLQWVVXPPDU\VWDWLVWLFVZLOOLQFOXGHQPHDQVWDQGDUGGHYLDWLRQ
PHGLDQDQGUDQJHPLQLPXPDQGPD[LPXP
x )RUGLVFUHWHHQGSRLQWVVXPPDU\VWDWLVWLFVZLOOLQFOXGHIUHTXHQFLHVDQGSHUFHQWDJHV
 +DQGOLQJRI0LVVLQJ'DWD
0LVVLQJGDWDZLOOQRWEHLPSXWHGXQOHVVRWKHUZLVHVSHFLILHGHOVHZKHUHLQWKH6$30LVVLQJGDWHV
RUSDUWLDOO\PLVVLQJGDWHVZLOOEHLPSXWHGFRQVHUYDWLYHO\IRUDGYHUVHHYHQWVDQGSULRUFRQFRPLWDQW
PHGLFDWLRQVSURFHGXUHV  6SHFLILF UXOHV IRU KDQGOLQJ RI PLVVLQJ RU SDUWLDOO\ PLVVLQJ GDWHV IRU
DGYHUVHHYHQWVDQGSULRUFRQFRPLWDQWPHGLFDWLRQVSURFHGXUHVDUHSURYLGHGLQ$SSHQGL[
%\YLVLWHQGSRLQWVZLOOEHDQDO\]HGXVLQJREVHUYHGGDWDXQOHVVRWKHUZLVHVSHFLILHG)RUREVHUYHG
GDWDDQDO\VHVPLVVLQJGDWDZLOOQRWEHLPSXWHGDQGRQO\WKHREVHUYHGUHFRUGVZLOOEHLQFOXGHG



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 $GMXVWPHQWIRU&RYDULDWHV
1RDGMXVWPHQWVIRUFRYDULDWHVDUHSODQQHGIRUSULPDU\VHFRQGDU\DQGH[SORUDWRU\DQDO\VHVLQWKH
VWXG\%DVHOLQHFKDUDFWHULVWLFVPD\EHXVHGLQWKHPRGHODVFRYDULDWHVDVVXSSRUWLYHH[SORUDWRU\
DQDO\VHVLIGHHPHGQHFHVVDU\
 0XOWLSOLFLW\$GMXVWPHQW
1RPXOWLSOLFLW\DGMXVWPHQWVZLOOEHPDGH
 'DWD,QWHJULW\
%HIRUHSUHVSHFLILHGVWDWLVWLFDODQDO\VLVEHJLQVWKHLQWHJULW\RIWKHGDWDVKRXOGEHUHYLHZHGWR
DVVXUHILWIRUSXUSRVH7KHGDWDVHWIRUDQDO\VLVVKRXOGEHDQDFFXUDWHDQGFRPSOHWHUHSUHVHQWDWLRQ
RIWKHSDWLHQWV
UHOHYDQWRXWFRPHVIURPWKHFOLQLFDOGDWDEDVH$OOGDWDVKRXOGEHFRPSOHWHDQG
UHYLHZHG XS WR D SUHVSHFLILHG FXWRII GDWH &RQVLVWHQF\ FKHFNV DQG DSSURSULDWH VRXUFH GDWD
YHULILFDWLRQVKRXOGEHFRPSOHWH

3$7,(17&+$5$&7(5,67,&6
 3DWLHQW'LVSRVLWLRQ
7KH QXPEHU SHUFHQWDJH RI SDWLHQWV ZLWK WUHDWPHQWVWXG\ RQJRLQJ GLVFRQWLQXHG IURP WKH
WUHDWPHQWVWXG\DQGUHDVRQVIRUGLVFRQWLQXHGIURPWUHDWPHQWVWXG\ZLOOEHVXPPDUL]HGLQ WKH
6$)
 3URWRFRO'HYLDWLRQV
3URWRFROGHYLDWLRQFULWHULDZLOOEHHVWDEOLVKHGSDWLHQWVZLWKSURWRFROGHYLDWLRQVZLOOEHLGHQWLILHG
DQGGRFXPHQWHGEHIRUHWKHGDWDEDVHORFN
0DMRU SURWRFRO GHYLDWLRQV ZLOO EH UHYLHZHG DQG VXPPDUL]HG $PRQJVW WKH PDMRU SURWRFRO
GHYLDWLRQVDFFRUGLQJWR,&+(JXLGDQFHWKRVHZKLFKPD\LPSDFWSULPDU\HIILFDF\DQDO\VLVDUH
LGHQWLILHGDVFULWLFDOSURWRFROGHYLDWLRQVDQGZLOOEHIXUWKHUVXPPDUL]HGE\FDWHJRU\VXFKDV
āSDWLHQWVHQWHUHGWKHVWXG\HYHQWKRXJKWKH\GLGQRWVDWLVI\WKHHQWU\FULWHULD
āSDWLHQWVGHYHORSHGZLWKGUDZDOFULWHULDGXULQJWKHVWXG\EXWZHUHQRWZLWKGUDZQ
āSDWLHQWVUHFHLYHGDQH[FOXGHGFRQFRPLWDQWWUHDWPHQW
 'HPRJUDSKLFDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV
'HPRJUDSKLFDQGRWKHUEDVHOLQHFKDUDFWHULVWLFVZLOOEHVXPPDUL]HGXVLQJGHVFULSWLYHVWDWLVWLFVLQ
WKH6$)&RQWLQXRXVYDULDEOHVLQFOXGHDJH%0,LQNJPERG\ZHLJKWLQNJKHLJKWLQFP
FDWHJRULFDOYDULDEOHVLQFOXGHDJHJURXSYV! \UVVH[UDFHFKLOGEHDULQJSRWHQWLDO
WREDFFRXVHVWDWXVDOFRKROFRQVXPSWLRQ(&2*VWDWXVYV



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 'LVHDVH+LVWRU\DQG&KDUDFWHULVWLFV
+&&KLVWRU\DQGFKDUDFWHULVWLFVVXFKDV%&/&LQLWLDOVWDJLQJWLPHIURPLQLWLDOGLDJQRVLVWRWKH
ILUVWVWXG\GRVHPHWKRGRILQLWLDO+&&GLDJQRVLVKLVWRORJLFDOW\SHRIFDQFHU%&/&VWDJLQJDW
VWXG\HQWU\WLPHIURP%&/&VWDJLQJDWVWXG\HQWU\WRWKHILUVWVWXG\GRVHPDFURYDVFXODULQYDVLRQ
H[WUDKHSDWLFVSUHDGGLVWDQWPHWDVWDVHVORFDWLRQRIPHWDVWDVHVDQGQXPEHURIPHWDVWDWLFVLWHVZLOO
DOVREHVXPPDUL]HG
$OSKDIHWRSURWHLQDWEDVHOLQHGHVFULSWLYHO\DVZHOODVE\FDWHJRU\! QJP/DQG! 
QJP/ZLOOEHVXPPDUL]HGDVSDUWRIGLVHDVHKLVWRU\
+&& UHOHYDQW PHGLFDO KLVWRU\ +HSDWLWLV % +HSDWLWLV & HWF DQG RQJRLQJ VWDWXV ZLOO EH
VXPPDUL]HGLQGHVFULSWLYHVWDWLVWLFV
7RWDO&KLOG3XJK6FRUHDWEDVHOLQHZLOOEHVXPPDUL]HGE\FDWHJRU\IUHTXHQF\DQGSHUFHQWDJHV
+%9DQG+&9LQIHFWLRQVWDWXVDWEDVHOLQHEDVHGRQVFUHHQLQJ+%9+HSDWLWLV%6XUIDFH$QWLJHQ
+HSDWLWLV % 6XUIDFH $QWLERG\ DQG +HSDWLWLV % &RUH $QWLERG\ DQG +&9 +HSDWLWLV & 9LUXV
$QWLERG\WHVWUHVXOWVZLOOEHVXPPDUL]HGZLWK+%9'1$'HWHFWDEOHYV8QGHWHFWDEOHDQG+&9
51$VWDWXV3RVLWLYHYV1HJDWLYH
7KHQXPEHUSHUFHQWDJHRISDWLHQWVUHSRUWLQJFOLQLFDOO\VLJQLILFDQWV\PSWRPVDWEDVHOLQHZLOOEH
VXPPDUL]HG E\ 6\VWHP2UJDQ &ODVV DQG 0HG'5$ SUHIHUUHG WHUP 6HYHULW\ RI WKH V\PSWRPV
DFFRUGLQJWR1&,&7&$(ZLOOEHVXPPDUL]HGE\PD[LPXPJUDGH
5HOHYDQWGDWDOLVWLQJVRIGLVHDVHKLVWRU\ZLOOEHSURYLGHG
 3ULRU$QWL&DQFHU7UHDWPHQW
1XPEHURIOLQHVRISULRUV\VWHPLFDQWLFDQFHUWKHUDSLHVZLOOEHVXPPDUL]HGLQIUHTXHQFLHVDQG
SHUFHQWDJHV5HJLPHQQDPHVEHVWUHVSRQVHWRWKHODVWWKHUDS\GXUDWLRQRIVRUDIHQLEPRQRWKHUDS\
GXUDWLRQRIWKHODVWWKHUDS\WLPHIURPODVWGLVHDVHSURJUHVVLRQWRILUVWVWXG\GRVHDQGUHDVRQVRI
WKHODVWWKHUDS\GLVFRQWLQXHGZLOOEHVXPPDUL]HG
7RWDOQXPEHUSHUFHQWDJHRISDWLHQWVZKRUHFHLYHGDQ\SULRUOLYHUORFDOUHJLRQDOWKHUDSLHVZLOOEH
VXPPDUL]HGDQGWKHQXPEHURIW\SHVRISULRUOLYHUORFDOUHJLRQDOWKHUDSLHVZLOOEHVXPPDUL]HG
DQG QXPEHU RI SDWLHQWV ZKR UHFHLYHG DQ\ W\SH RI OLYHU ORFDO UHJLRQDO WKHUDSLHV ZLOO DOVR EH
VXPPDUL]HGE\WKHUDS\W\SH3ULRUOLYHUORFDOUHJLRQDOWKHUDS\7$&(ZLOOEHVXPPDUL]HGE\
FKHPRWKHUDSHXWLFGUXJQDPHVLQIUHTXHQFLHVDQGSHUFHQWDJHVSULRUOLYHUORFDOUHJLRQDOUDGLDWLRQ
WKHUDS\(%57RU6,57ZLOODOVREHVXPPDUL]HGE\UDGLDWLRQWKHUDS\W\SH7UHDWPHQWLQWHQWLRQ
RIWKHDERYHOLYHUORFDOUHJLRQDOWKHUDSLHVZLOODOVREHVXPPDUL]HGLQIUHTXHQFLHVDQGSHUFHQWDJHV
FXUDWLYHRUSDOOLDWLYH
3ULRUUDGLRWKHUDSLHVWKHUDS\W\SHWUHDWPHQWLQWHQWLRQVLWHVHWFDQGSULRUVXUJHULHVSURFHGXUHV
QDPHLQWHQWLRQDQGDQDWRPLFORFDWLRQZLOOEHVXPPDUL]HGVLPLODUO\5HOHYDQWGHWDLOOLVWLQJVZLOO
EHSURYLGHGIRUSRWHQWLDOQDUUDWLYHVXVH



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 3ULRUDQG&RQFRPLWDQW0HGLFDWLRQV
3ULRU DQG FRQFRPLWDQW PHGLFDWLRQV ZLOO EH FRGHG XVLQJ FXUUHQW YHUVLRQ RI :RUOG +HDOWK
2UJDQL]DWLRQ'UXJ'LFWLRQDU\:+2''GUXJFRGHVZLOOEHIXUWKHUFODVVLILHGWRWKHDSSURSULDWH
$QDWRPLFDO7KHUDSHXWLF&KHPLFDO$7&FRGH
7KH QXPEHU SHUFHQWDJH RI SDWLHQWV UHSRUWLQJ SULRU DQG FRQFRPLWDQW PHGLFDWLRQV ZLOO EH
VXPPDUL]HGE\$7&PHGLFDWLRQFODVVDQG:+2''SUHIHUUHGQDPH
3ULRUPHGLFDWLRQVZLOOEHGHILQHGDVPHGLFDWLRQVWKDWVWRSSHGEHIRUHWKHILUVWGRVHRIVWXG\GUXJ
&RQFRPLWDQWPHGLFDWLRQVZLOOEHGHILQHGDVPHGLFDWLRQVWKDWVWDUWHGEHIRUHWKHILUVWGRVHRI
VWXG\GUXJDQGZHUHFRQWLQXLQJDWWKHWLPHRIWKHILUVWGRVHRIVWXG\GUXJRUVWDUWHGRQRUDIWHU
WKHGDWHRIWKHILUVWGRVHRIVWXG\GUXJXSWRGD\VDIWHUWKHSDWLHQW¶VODVWGRVH$OLVWLQJRISULRU
FRQFRPLWDQWDQGVXEVHTXHQWPHGLFDWLRQVZLOOEHSURYLGHG
&RQFRPLWDQWV\VWHPLFVWHURLGPHGLFDWLRQVDQGVXUJHULHVSURFHGXUHVXVHGGXULQJWUHDWPHQWZLOOEH
VXPPDUL]HGVHSDUDWHO\
 0HGLFDO+LVWRU\
0HGLFDOKLVWRU\ZLOOEHFRGHGXVLQJ0HG'5$FRGHVRIWKHYHUVLRQFXUUHQWO\LQHIIHFWDW%HL*HQH
DWWKHWLPHRIGDWDEDVHORFN7KHQXPEHUSHUFHQWDJHRISDWLHQWVUHSRUWLQJDKLVWRU\RIDQ\PHGLFDO
FRQGLWLRQ RWKHU WKDQ +&& UHOHYDQW KLVWRU\ FRQGLWLRQV DV UHFRUGHG RQ WKH &5) ZLOO EH
VXPPDUL]HG E\ V\VWHP RUJDQ FODVV DQG SUHIHUUHG WHUP $ OLVWLQJ RI PHGLFDO KLVWRU\ ZLOO EH
SURYLGHG

()),&$&<$1$/<6,6
$OOHIILFDF\DQDO\VHVSHUIRUPHGRQHQGSRLQWVGHULYHGIURPDVVHVVPHQWVSHU,QGHSHQGHQW5HYLHZ
&RPPLWWHH ,5& ZLOO DOVR EH SHUIRUPHG RQ WKH VDPH HQGSRLQWV GHULYHG IURP LQYHVWLJDWRUV¶
DVVHVVPHQWV
 3ULPDU\(IILFDF\(QGSRLQWV
2EMHFWLYH5HVSRQVH5DWH255

7KHQXPEHUDQGSURSRUWLRQRISDWLHQWVZKRDFKLHYHGFRQILUPHGREMHFWLYHWXPRUUHVSRQVH&5RU
35 DV HYDOXDWHG E\ ,5& DFFRUGLQJ WR 5(&,67 Y ZLOO EH VXPPDUL]HG 3DWLHQWV ZLWKRXW
SRVWEDVHOLQHWXPRUDVVHVVPHQWZLOOEHFRQVLGHUHGDVQRQUHVSRQGHUV
3ULPDU\DQDO\VLVRI255ZLOOEHEDVHGRQ6$)$QDO\VLVRI255ZLOODOVREHFRQGXFWHGLQWKH
())DVDVHQVLWLYLW\DQDO\VLV
$VWDWLVWLFDOWHVWLQJRIFRPSDULVRQRI255RIVWXG\GUXJRYHUDSUHVSHFLILHGKLVWRULFDO255
LQQXOOK\SRWKHVLVZLOOEHSHUIRUPHGXVLQJ%LQRPLDOH[DFWPHWKRGGHPRQVWUDWLRQRIVXSHULRULW\
RIWHVWGUXJZLOOEHFODLPHGLIRQHVLGHGSYDOXHLV
$WZRVLGHGELQRPLDOH[DFWFRQILGHQFHLQWHUYDO&,RI255ZLOODOVREHFRQVWUXFWHGWRDVVHVV
WKHSUHFLVLRQRIWKHSRLQWHVWLPDWHRI255



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

7KH SULPDU\ HIILFDF\ DQDO\VLV ZLOO EH FRQGXFWHG ZKHQ PDWXUH UHVSRQVH UDWH GDWD KDYH EHHQ
REVHUYHGHVWLPDWHGDSSUR[LPDWHO\PRQWKVDIWHUWKHODVWSDWLHQWLQ/3,$GGLWLRQDOHIILFDF\
DQDO\VLVZLOOEHFRQGXFWHGDSSUR[LPDWHO\PRQWKVDIWHU/3,
 6HFRQGDU\(IILFDF\(QGSRLQWV
'XUDWLRQRI5HVSRQVH'25

'XUDWLRQRIUHVSRQVHIRUUHVSRQGHUV&5RU35LVGHILQHGDVWKHWLPHLQWHUYDOEHWZHHQWKHGDWHRI
WKHHDUOLHVWTXDOLI\LQJUHVSRQVHDQGWKHGDWHRI3'RUGHDWKIRUDQ\FDXVH'XUDWLRQRIUHVSRQVH
DQDO\VLVZLOORQO\LQFOXGHUHVSRQGHUV&HQVRULQJUXOHIRU'25ZLOOIROORZ3)6FHQVRULQJUXOH
GHVFULEHGEHORZ

.DSODQဩ0HLHU PHWKRG ZLOO EH XVHG WR HVWLPDWH PHGLDQ WLPH DQG  FRQILGHQFH LQWHUYDO IRU
GXUDWLRQRIUHVSRQVH

3URJUHVVLRQ)UHH6XUYLYDO3)6
3)6LVGHILQHGDVWKHWLPHIURPWKHGDWHRIILUVWGRVHRIVWXG\WUHDWPHQWWRGLVHDVHSURJUHVVLRQRU
GHDWKZKLFKHYHULVHDUOLHU.DSODQ0HLHUPHWKRGDORQJZLWKWKHFRUUHVSRQGLQJ&,EDVHGRQ
*UHHQZRRG¶VIRUPXODZLOOEHXVHGWRFRQVWUXFWWKH3)6WLPHSRLQWHVWLPDWHVZKLFKDUHGHILQHGDV
WKHSHUFHQWDJHVRISDWLHQWVLQWKHDQDO\VLVSRSXODWLRQZKRUHPDLQDOLYHDQGSURJUHVVLRQIUHHDWWKH
VSHFLILHGWLPHSRLQWVLHRUPRQWK.DSODQ0HLHUFXUYHVZLOOEHFRQVWUXFWHGWRSURYLGHD
YLVXDOGHVFULSWLRQRIWKH3)6UDWHYHUVXVWLPH
7KH3)6GHULYDWLRQUXOHVLQWKLV6$3IROORZ)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$³*XLGDQFHIRU
,QGXVWU\&OLQLFDO7ULDO(QGSRLQWVIRUWKH$SSURYDORI&DQFHU'UXJVDQG%LRORJLFV´ZLWK
VRPHPRGLILFDWLRQV
7DEOHVKRZVWKHSULPDU\FHQVRULQJUXOHVIRUWKHGHULYDWLRQRI3)6XVLQJ5(&,67YFULWHULD
EDVHGXSRQUDGLRORJLFDOWXPRUDVVHVVPHQW
7DEOH&HQVRULQJ5XOHVIRU$QDO\VLVRI3URJUHVVLRQ)UHH6XUYLYDO3HU5(&,67Y
1R 6LWXDWLRQ
'DWH
RI
3URJUHVVLRQ
RU
&HQVRULQJ
2XWFRPH

1REDVHOLQHWXPRUDVVHVVPHQWV
'DWHRIWKHILUVWGRVH
&HQVRUHG

3URJUHVVLRQ
GRFXPHQWHG
RQ
VFKHGXOHGYLVLWRUEHWZHHQVFKHGXOHG
YLVLWV
'DWH RI ILUVW UDGLRORJLF 3'
DVVHVVPHQW
3URJUHVVHG

1RSURJUHVVLRQDWWKHWLPHRIGDWDFXW
RIIRUZLWKGUDZDOIURPVWXG\
'DWHRIODVWDGHTXDWHUDGLRORJLF
DVVHVVPHQWSULRUWRRURQGDWHRI
GDWDFXWRIIRUZLWKGUDZDOIURP
VWXG\
&HQVRUHG




%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/


1HZDQWLFDQFHUWUHDWPHQWVWDUWHG
'DWHRIODVWDGHTXDWHUDGLRORJLF
DVVHVVPHQWSULRUWRRURQGDWHRI
QHZDQWLFDQFHUWUHDWPHQW
&HQVRUHG

'HDWKEHIRUHILUVW3'DVVHVVPHQW
'DWHRIGHDWK
3URJUHVVHG

'HDWK EHWZHHQ DGHTXDWH DVVHVVPHQW
YLVLWV
'DWHRIGHDWK
3URJUHVVHG

'HDWKRUSURJUHVVLRQDIWHUPRUHWKDQ
RQHPLVVHGYLVLW
'DWHRIODVWDGHTXDWHUDGLRORJLF
DVVHVVPHQW SULRU WR PLVVLQJ
RFFXUUHG
&HQVRUHG
$EEUHYLDWLRQV&5 FRPSOHWHUHVSRQVH3' SURJUHVVLYHGLVHDVH35 SDUWLDOUHVSRQVH6' VWDEOH
GLVHDVH
$GHTXDWH WXPRU DVVHVVPHQW LV D UDGLRORJLF DVVHVVPHQW RI &5 35 6' QRQ&5QRQ3' RU 3' DV
GHWHUPLQHGE\LQYHVWLJDWRUV
0RUHWKDQRQHPLVVHGYLVLWLVGHILQHGDVWKHGXUDWLRQEHWZHHQWKHODVWWXPRUDVVHVVPHQWDQGGHDWKRU
3'LVORQJHUWKDQZHHNVZHHNLQWKHILUVWZHHNVDQGORQJHUWKDQZHHNVWKHUHDIWHU
7KHSULRULW\RIWKHFHQVRULQJUXOHVLQWKHSULPDU\DQDO\VLVLVDVIROORZV
 ,IWKHSDWLHQWKDGDQHYHQWRI3'RUGHDWKWKHIROORZLQJVHTXHQFHZLOOEHDSSOLHG
D ,IDSDWLHQWGLGQRWKDYHEDVHOLQHWXPRUDVVHVVPHQW1RWKHSDWLHQWZLOOEHFHQVRUHG
RQGDWHRIWKHILUVWGRVHRIVWXG\WUHDWPHQW+RZHYHULIWKHSDWLHQWGLHGZLWKLQGD\V
ZHHNVDIWHUWKHILUVWGRVHGDWHDQGGLGQRWUHFHLYHQHZDQWLFDQFHUWUHDWPHQWWKHGDWH
RIGHDWKZLOOEHWKH3)6HYHQWGDWHQRWFHQVRUHG
E ,IDSDWLHQWKDGQHZDQWLFDQFHUWUHDWPHQWEHIRUHWKHHDUOLHVWHYHQWRI3'RUGHDWK1R
WKHSDWLHQWZLOOEHFHQVRUHGRQWKHGDWHRIWKHODVWWXPRUDVVHVVPHQWSULRUWRRURQWKHGDWH
RIQHZDQWLFDQFHUWUHDWPHQW
F ,IDSDWLHQWKDGPRUHWKDQRQHPLVVHGWXPRUDVVHVVPHQWYLVLWVEHIRUHWKHHDUOLHVWHYHQWRI
3'RUGHDWK1RWKHSDWLHQWZLOOEHFHQVRUHGRQWKHGDWHRIWKHODVWDGHTXDWHUDGLRORJLF
DVVHVVPHQWSULRUWRPLVVLQJWXPRUDVVHVVPHQW
G 2WKHUZLVHWKHHDUOLHVWHYHQWGDWHZLOOEHXVHG1R1RRU1R
 ,IDSDWLHQWGLGQRWKDYH3'RUGHDWKWKHFHQVRULQJGDWHZLOOEHWKHHDUOLHVWFHQVRULQJGDWHLI
WKHSDWLHQWPHWPXOWLSOHFHQVRULQJFULWHULD1R1R1R
,QDGGLWLRQDVDVHQVLWLYLW\DQDO\VLVFOLQLFDO3'ZLOOEHFRQVLGHUHGDVDQHYHQWLQFDOFXODWLRQRI
3)6
'LVHDVH&RQWURO5DWH'&5
'&5LVGHILQHGDVWKHSURSRUWLRQRISDWLHQWVZKRVHEHVWRYHUDOOUHVSRQVH%25LV&535RU6'
E\,5&DQG,QYHVWLJDWRUSHU5(&,67Y3DWLHQWVZLWKRXWSRVWEDVHOLQHWXPRUDVVHVVPHQWZLOOEH
FRQVLGHUHGDVIDLOXUHLQ'&5



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

$WZRVLGHGELQRPLDOH[DFWFRQILGHQFHLQWHUYDO&,RI'&5ZLOODOVREHFRQVWUXFWHGWRDVVHVV
WKHSUHFLVLRQRIWKHSRLQWHVWLPDWHRI'&5
&OLQLFDO%HQHILW5DWH&%5
&%5LVGHILQHGDVWKHSURSRUWLRQRISDWLHQWVZKRKDYH&535RU6'RIZHHNVLQGXUDWLRQ
DVVHVVHGE\,5&DQG,QYHVWLJDWRUSHU5(&,67Y6'GXUDWLRQLVPHDVXUHGIURPWKHVWDUWRI
VWXG\WUHDWPHQWXQWLOWKHWLPHWKDWWKHFULWHULDIRUSURJUHVVLRQDUHPHW
$WZRVLGHGELQRPLDOH[DFWFRQILGHQFHLQWHUYDO&,RI&%5ZLOODOVREHFRQVWUXFWHGWRDVVHVV
WKHSUHFLVLRQRIWKHSRLQWHVWLPDWHRI&%5
2YHUDOO6XUYLYDO26
2YHUDOOVXUYLYDOLVGHILQHGDVWKHWLPHIURPWKHGDWHRIWKHILUVWGRVHRIVWXG\WUHDWPHQWWRGHDWK
3DWLHQWVZKRUHPDLQHGDOLYHDWGDWDFXWRIIRUGLVFRQWLQXDWLRQRIWKHVWXG\GLVFRQWLQXHGVWXG\GXH
WRUHDVRQVRWKHUWKDQ³'HDWK´ZLOOEHFHQVRUHGDWWKHWLPHRIWKHODVWGDWHWKHSDWLHQWZDVNQRZQ
WREHDOLYH
7KH26WLPHSRLQWHVWLPDWHVGHILQHGDVWKHSHUFHQWDJHVRISDWLHQWVLQWKHDQDO\VLVSRSXODWLRQZKR
UHPDLQDOLYHDWWKHVSHFLILHGWLPHSRLQWVLHPRQWKVHWFZLOOEHHVWLPDWHGXVLQJWKH.DSODQ
0HLHUPHWKRGDORQJZLWKWKHFRUUHVSRQGLQJ&,FRQVWUXFWHGXVLQJ*UHHQZRRG¶VIRUPXOD7KH
.DSODQ0HLHUHVWLPDWHVRI26ZLOOEHSORWWHGRYHUWLPH

:DWHUIDOOSORWVZLOOEHSURYLGHGIRUWKHPD[LPXPWXPRUVKULQNDJHEDVHGRQWDUJHWOHVLRQ7KH
PD[LPXPWXPRUVKULQNDJHEDVHGRQWDUJHWOHVLRQXVHGLQWKHSORWVZLOOEHOLVWHG
,Q DGGLWLRQ QXPEHU RI SDWLHQWV ZKR UHFHLYHG SRVWWUHDWPHQW DQWLFDQFHU WKHUDSLHV
VXUJHU\SURFHGXUHUDGLDWLRQRUV\VWHPLFWKHUDSLHVDQGUHJLPHQZLOOEHVXPPDUL]HG
 6XEJURXS$QDO\VHV
6XEJURXSDQDO\VLVRQNH\HIILFDF\HQGSRLQWV25526HWFZLOOEHFRQGXFWHGWRH[SORUHWKH
FRQVLVWHQFHRIHIILFDF\DFURVVYDULHW\RIVXEJURXSV6XEJURXSYDULDEOHVPD\LQFOXGHEXWQRW
OLPLWHGWR
xDJHYV!\HDUV
xJHQGHU)HPDOHYV0DOH
xPDFURYDVFXODULQYDVLRQDQGRUH[WUDKHSDWLFVSUHDGSUHVHQWRUDEVHQW
xPDFURYDVFXODULQYDVLRQSUHVHQWRUDEVHQW
xH[WUDKHSDWLFVSUHDGSUHVHQWRUDEVHQW
xKHSDWLWLVYLUDOVWDWXV+%9YV+&9YV8QLQIHFWHG
x(&2*36YV
x 6FUHHQLQJDOSKDIHWRSURWHLQ QJP/YV!QJP/DQG QJP/YV!
QJP/
x%&/&VWDJHDWVWXG\HQWU\6WDJH%YV6WDJH&
xSULRUORFRUHJLRQDOWKHUDS\\HVRUQR



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

x RISULRU7$&(ORFRUHJLRQDOWKHUDSLHV
x 3'/H[SUHVVLRQ
&RXQWU\VSHFLILFVXEJURXSVPD\DOVREHVXPPDUL]HGSHUORFDOUHJXODWRU\UHTXLUHPHQWV

6$)(7<$1$/<6(6
$OOVDIHW\DQDO\VHVZLOOEHSHUIRUPHGLQWKH6$)7UHDWPHQWH[WHQWRIH[SRVXUHLQFLGHQFHRI
WUHDWPHQWHPHUJHQWDGYHUVHHYHQWVGHDWKODERUDWRU\YLWDOVLJQV(&2*3HUIRUPDQFH6WDWXVDQG
(&*ZLOOEHDQDO\]HG$EQRUPDOYDOXHVZLOOEHIODJJHG
 ([WHQWRI([SRVXUH
'HVFULSWLYH 6WDWLVWLFV Q PHDQ VWDQGDUG GHYLDWLRQ PHGLDQ PLQLPXP DQG PD[LPXP ZLOO EH
HVWLPDWHGIRUFRQWLQXRXVYDULDEOHVLQFOXGLQJWRWDOGRVHLQPJGXUDWLRQRIWUHDWPHQWDFWXDOGRVH
LQWHQVLW\ UHODWLYH GRVH LQWHQVLW\ QXPEHU RI F\FOHV &DWHJRULFDO YDULDEOHV LQFOXGH GXUDWLRQ RI
WUHDWPHQWLQPRQWKVQXPEHURIF\FOHVUHFHLYHGQXPEHURISDWLHQWVZLWKGRVHPRGLILFDWLRQGRVH
GHOD\RULQWHUUXSWLRQ
,QDGGLWLRQIUHTXHQF\RIGRVHGHOD\DQGIUHTXHQF\RIGRVHLQWHUUXSWLRQZLOOEHVXPPDUL]HGE\
FDWHJRULHV
$FWXDOGRVHLQWHQVLW\$',SHUSDWLHQWPJF\FOHZKLFKLVGHILQHGDVVXPRIDFWXDOGRVHUHFHLYHG
GLYLGHGE\GXUDWLRQRIWUHDWPHQWDQGUHODWLYHGRVHLQWHQVLW\5',SHUSDWLHQWGHILQHGDVDFWXDO
GRVHLQWHQVLW\SODQQHGGRVHLQWHQVLW\SHUSDWLHQWZLOOEHVXPPDUL]HG
3DWLHQW GDWD OLVWLQJV ZLOO EH SURYLGHG IRU DOO GRVLQJ UHFRUGV DQG DERYH FDOFXODWHG VXPPDU\
VWDWLVWLFV
 $GYHUVH(YHQWV
$(V ZLOO EH JUDGHG E\ WKH LQYHVWLJDWRUV XVLQJ &7&$( Y 7KH $( YHUEDWLP GHVFULSWLRQV
LQYHVWLJDWRUWHUPVIURPWKH&5)ZLOOEHFODVVLILHGLQWRVWDQGDUGL]HGPHGLFDOWHUPLQRORJ\XVLQJ
WKH0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV0HG'5$$GYHUVHHYHQWVZLOOEHFRGHGWRWKH
0HG'5$ORZHUOHYHOWHUPFORVHVWWRWKHYHUEDWLPWHUP7KHOLQNHG0HG'5$SUHIHUUHGWHUP37
DQGSULPDU\V\VWHPRUJDQFODVV62&DUHDOVRFDSWXUHGLQWKHGDWDEDVH
$WUHDWPHQWHPHUJHQWDGYHUVHHYHQW7($(LVGHILQHGDVDQ$(WKDWKDGDQRQVHWGDWHRQRUDIWHU
WKH GDWH RI WKH ILUVW GRVH RI VWXG\ WUHDWPHQW WKURXJK  GD\V DIWHU WKH ODVW GRVH SHUPDQHQW
GLVFRQWLQXDWLRQ RI VWXG\ WUHDWPHQW RU LQLWLDWLRQ RI QHZ DQWLFDQFHU WKHUDS\ ZKLFKHYHU RFFXUV
HDUOLHU7KH7($(FODVVLILFDWLRQDOVRLQFOXGHVLPPXQHUHODWHG$(VDQGUHODWHGVHULRXV$(VWKDW
DUH UHFRUGHG XS WR  GD\V DIWHU GLVFRQWLQXDWLRQ IURP WUHDWPHQW 2QO\ WKRVH $(V WKDW ZHUH
WUHDWPHQWHPHUJHQWZLOOEHLQFOXGHGLQVXPPDU\WDEOHV$OO$(VWUHDWPHQWHPHUJHQWRURWKHUZLVH
ZLOOEHSUHVHQWHGLQSDWLHQWGDWDOLVWLQJV
$QRYHUYLHZWDEOHLQFOXGLQJWKHLQFLGHQFHRIDQGWKHQXPEHURISDWLHQWVZLWK7($(VWUHDWPHQW
HPHUJHQWVHULRXVDGYHUVHHYHQWV6$(VWUHDWPHQWUHODWHG7($(V7($(VZLWKJUDGHRUDERYH
WUHDWPHQWUHODWHG6$(V7($(VWKDWOHGWRGHDWK7($(VWKDWOHGWRWUHDWPHQWGLVFRQWLQXDWLRQ



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

7($(VWKDWOHGWRGRVHKROGLQWHUUXSWLRQSRWHQWLDOLPPXQHUHODWHG7($(VDQGLQIXVLRQUHODWHG
UHDFWLRQV ZLOO EH SURYLGHG 7UHDWPHQWUHODWHG $(V LQFOXGH WKRVH HYHQWV FRQVLGHUHG E\ WKH
LQYHVWLJDWRUWREHUHODWHGWRVWXG\WUHDWPHQWRUZLWKPLVVLQJDVVHVVPHQWRIWKHFDXVDOUHODWLRQVKLS

7KHLQFLGHQFHRI7($(VZLOOEHUHSRUWHGDVWKHQXPEHUSHUFHQWDJHRISDWLHQWVZLWK7($(VE\
62&DQG37$SDWLHQWZLOOEHFRXQWHGRQO\RQFHE\WKHKLJKHVWVHYHULW\JUDGHDFFRUGLQJWR
&7&$(YZLWKLQDQ62&DQG37HYHQLIWKHSDWLHQWH[SHULHQFHGPRUHWKDQ7($(ZLWKLQ
DVSHFLILF62&DQG37
7KHQXPEHUSHUFHQWDJHRISDWLHQWVZLWKWUHDWPHQWHPHUJHQW6$(VWUHDWPHQWUHODWHG7($(V
7($(VZLWKJUDGHRUDERYHWUHDWPHQWUHODWHG6$(V7($(VWKDWOHGWRGHDWK7($(VWKDWOHG
WRWUHDWPHQWGLVFRQWLQXDWLRQ7($(VWKDWOHGWRGRVHKROGLQWHUUXSWLRQSRWHQWLDOLPPXQHUHODWHG
7($(VDQGLQIXVLRQUHODWHGUHDFWLRQV,55ZLOOEHVXPPDUL]HGE\62&DQG37

 2YHUDOOVXPPDU\RI7($(V
 $OO7($(VE\62&DQG37
 7UHDWPHQWUHODWHG7($(VE\62&DQG37
 $OO7($(VZLWK*UDGHRUDERYHE\62&DQG37
 7($(VE\PD[LPXPVHYHULW\
 7UHDWPHQWUHODWHG*UDGHRUDERYH7($(VE\62&DQG37
 $OOVHULRXV7($(VE\62&DQG37
 7UHDWPHQWUHODWHGVHULRXV7($(VE\62&DQG37
 7($(VOHDGLQJWRVWXG\GUXJSHUPDQHQWO\GLVFRQWLQXHG
7UHDWPHQWUHODWHG7($(VOHDGLQJWRVWXG\GUXJSHUPDQHQWO\GLVFRQWLQXHG
7($(VOHDGLQJWRVWXG\GUXJGRVHKHOGLQWHUUXSWHG
7UHDWPHQWUHODWHG7($(VOHDGLQJWRVWXG\GUXJGRVHKROGLQWHUUXSWHG
7($(VOHDGLQJWRGHDWK
7UHDWPHQWUHODWHG7($(VOHDGLQJWRGHDWK
LPPXQHUHODWHG7($(VLU7($(V
7($(VFRQVLGHUHGDVLQIXVLRQUHODWHGUHDFWLRQV,55

3DWLHQW GDWD OLVWLQJV RI DOO $(V 6$(V $(V WKDW OHG WR GHDWK DQG $(V WKDW OHG WR WUHDWPHQW
GLVFRQWLQXDWLRQZLOOEHSURYLGHG
$OOGHDWKVDQGFDXVHVRIGHDWKZLOOEHUHSRUWHGLQFOXGLQJWKRVHZKLFKRFFXUUHGGXULQJWKHVWXG\
WUHDWPHQW SHULRG DQG WKRVH UHSRUWHG GXULQJ WKH VXUYLYDO IROORZXS SHULRG DIWHU WUHDWPHQW
FRPSOHWLRQGLVFRQWLQXDWLRQ



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 /DERUDWRU\9DOXHV
/DERUDWRU\ UHVXOWV IRU KHPDWRORJ\ ELRFKHPLVWU\ DQG FRDJXODWLRQ ZLOO EH VXPPDUL]HG XVLQJ
6\VWHP,QWHUQDWLRQDO6,XQLWVDVDSSURSULDWH)RUDOOTXDQWLWDWLYHSDUDPHWHUVOLVWHGLQ7DEOH
WKHDFWXDOYDOXHDQGWKHFKDQJHIURPEDVHOLQHWRHDFKSRVWEDVHOLQHYLVLWDQGWRWKHHQGRIWUHDWPHQW
ZLOOEHVXPPDUL]HGE\ YLVLW XVLQJGHVFULSWLYHVWDWLVWLFVQPHDQVWDQGDUGGHYLDWLRQ PHGLDQ
PLQLPXP PD[LPXP IRU FRQWLQXRXV YDULDEOHV Q >@ IRU FDWHJRULFDO YDULDEOHV 8QVFKHGXOHG
PHDVXUHPHQWV ZLOO QRW EH VXPPDUL]HG E\ YLVLW EXW ZLOO EH LQFOXGHG LQ FDOFXODWLRQ RI
PLQLPXPPD[LPXPFKDQJHIURPEDVHOLQH
/DERUDWRU\SDUDPHWHUV$ONDOLQHSKRVSKDWDVH$ODQLQHDPLQRWUDQVIHUDVH$VSDUWDWHHWFWKDWDUH
JUDGHGLQ1&,&7&$(YZLOOEHVXPPDUL]HGE\VKLIWVIURPEDVHOLQH&7&$(JUDGHVWR
ZRUVWSRVWEDVHOLQHJUDGHV,QWKHVXPPDU\RIODERUDWRU\SDUDPHWHUVE\&7&$(JUDGHSDUDPHWHUV
ZLWK&7&$(JUDGLQJLQERWKKLJKDQGORZGLUHFWLRQVZLOOEHVXPPDUL]HGVHSDUDWHO\
7DEOH&OLQLFDO/DERUDWRU\$VVHVVPHQWV
6HUXP&KHPLVWU\
+HPDWRORJ\
&RDJXODWLRQ
$ONDOLQHSKRVSKDWDVH
$ODQLQHDPLQRWUDQVIHUDVH
$VSDUWDWHDPLQRWUDQVIHUDVH
$OEXPLQ
'LUHFWELOLUXELQ
7RWDOELOLUXELQ
%ORRGXUHDQLWURJHQRUXUHD
&UHDWLQLQH
*OXFRVH
/DFWDWHGHK\GURJHQDVH
7RWDOSURWHLQ
3RWDVVLXP
6RGLXP
&UHDWLQHNLQDVH&.
&UHDWLQHNLQDVHFDUGLDFPXVFOHLVRHQ]\PH
&.0%
+HPDWRFULW
+HPRJORELQ
3ODWHOHWFRXQW
:%&FRXQW
1HXWURSKLOFRXQW
/\PSKRF\WHFRXQW


3URWKURPELQWLPH
$FWLYDWHG3DUWLDO
7KURPERSODVWLQ7LPH
,QWHUQDWLRQDO1RUPDOL]HG
5DWLR
 
)XUWKHUPRUHWRHYDOXDWHOLYHULQMXU\SRWHQWLDO+\¶V/DZFDVHVLHSDWLHQWVZLWKDQ\$/7RU$67
![8/1SDWLHQWVZLWKDQ\7%/![8/1SDWLHQWVZKRPHWERWKFULWHULDDERYHDQGSDWLHQWV
ZKRPHWERWKDERYHFULWHULDZLWK$/3[8/1REVHUYHGZLOOEHVXPPDUL]HG
,QDGGLWLRQFKDQJHIURPEDVHOLQHLQDOSKDIHWRSURWHLQ$)3ZLOOEHVXPPDUL]HG
 9LWDO6LJQV
7KHFKDQJHIURPEDVHOLQHYLWDOVLJQVLQEORRGSUHVVXUHSXOVHUDWHZHLJKWWHPSHUDWXUHLQ&HOVLXV
ZLOOEHVXPPDUL]HGLQGHVFULSWLYHVWDWLVWLFV3RWHQWLDOO\&OLQLFDOO\6LJQLILFDQW3&6YLWDOVLJQV
VXFKDVSXOVHUDWHESP ! V\VWROLF%3PP+J ! DQGGLDVWROLF%3
PP+J ! ZLOOEHVXPPDUL]HG



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 3K\VLFDO([DPLQDWLRQ
3K\VLFDOH[DPLQDWLRQZLOOEHDVVHVVHGGXULQJVFUHHQLQJDQGVWXG\YLVLWV3K\VLFDOH[DPLQDWLRQ
ILQGLQJV SULRU WR ILUVW GRVH RI VWXG\ WUHDWPHQW ZLOO EH FROOHFWHG LQ PHGLFDO KLVWRU\ FOLQLFDOO\
VLJQLILFDQWDEQRUPDOLWLHVIRXQGLQSK\VLFDOH[DPLQDWLRQZLOOEHUHSRUWHGLQDGYHUVHHYHQWV1R
VHSDUDWHSK\VLFDOH[DPLQDWLRQGDWDZLOOEHFROOHFWHGDQGUHSRUWHGLQWKLVVWXG\
 2SKWKDOPRORJLF([DPLQDWLRQ
$GDWDOLVWLQJRIRSKWKDOPRORJLFH[DPLQDWLRQUHVXOWVZLOOEHSURYLGHG
 (OHFWURFDUGLRJUDPV(&*
(&*ZLOOEHSHUIRUPHG DW WKHEDVHOLQH DQGPXOWLSOHWLPHSRLQWV UHIHU WKHWLPHSRLQWVWR WKH
SURWRFROVWXG\DVVHVVPHQWVDQGSURFHGXUHVVFKHGXOHDIWHUWKHVWDUWRIWUHDWPHQW2EVHUYHGDQG
FKDQJHIURPEDVHOLQHLQ(&*ZLOOEHVXPPDUL]HGGHVFULSWLYHO\RYHUWLPHE\YLVLW2EVHUYHGSRVW
EDVHOLQH47FLQWHUYDOPHDVXUHPHQWDQGLQFUHDVHIURPEDVHOLQHE\SUHVSHFLILHGWKUHVKROGVZLOOEH
VXPPDUL]HGE\FDWHJRU\
 (DVWHUQ&RRSHUDWLYH2QFRORJ\*URXS(&2*
$ VKLIW WDEOH IURP EDVHOLQH WR ZRUVW SRVWEDVHOLQH LQ (&2* SHUIRUPDQFH VWDWXV ZLOO EH
VXPPDUL]HG

3+$50$&2.,1(7,&$1$/<6(6
3KDUPDFRNLQHWLFVDPSOHVZLOOEHFROOHFWHGLQWKLVVWXG\UHIHUWR$SSHQGL[RISURWRFRODQGRQO\
IURPSDWLHQWVUHFHLYLQJWLVOHOL]XPDEDWVLWHVWKDWDUHDEOHWRDGHTXDWHO\SHUIRUP3.VDPSOLQJ
KDQGOLQJDQGSURFHVVLQJSURFHGXUHVDVRXWOLQHGLQWKHODERUDWRU\PDQXDO7LVOHOL]XPDESRVWGRVH
DQGWURXJKVHUXPFRQFHQWUDWLRQGDWD&WURXJKZLOOEHWDEXODWHGDQGVXPPDUL]HGE\YLVLWF\FOHDW
ZKLFKWKHVHFRQFHQWUDWLRQVZHUHFROOHFWHG'HVFULSWLYHVWDWLVWLFVZLOOLQFOXGHPHDQVJHRPHWULF
PHDQPHGLDQV&9UDQJHVDQGVWDQGDUGGHYLDWLRQVDVDSSURSULDWH

,00812*(1,&,7<$1$/<6(6
+XPDQDQWLGUXJDQWLERGLHV$'$WRWLVOHOL]XPDEZLOOEHDVVHVVHGGXULQJWKHVWXG\DVGHILQHGLQ
WKHSURWRFRO
$'$DWWULEXWHV
x
7UHDWPHQWERRVWHG$'$LVGHILQHGDV$'$SRVLWLYHDWEDVHOLQHWKDWZDVERRVWHGWRD
IROGRUKLJKHUOHYHOIROORZLQJGUXJDGPLQLVWUDWLRQ
x
7UHDWPHQWLQGXFHG$'$LVGHILQHGDV$'$QHJDWLYHDWEDVHOLQHDQG$'$SRVLWLYHSRVW
EDVHOLQH
x
3HUVLVWHQW$'$UHVSRQVHLVGHILQHGDV7UHDWPHQWLQGXFHG$'$GHWHFWHGDWRUPRUH
WLPHSRLQWVGXULQJWUHDWPHQWRUIROORZXSZKHUHWKHILUVWDQGODVW$'$SRVLWLYHVDPSOHV
DUHVHSDUDWHGE\ZHHNVRUORQJHURUGHWHFWHGLQWKHODVWWLPHSRLQW



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

x
7UDQVLHQW$'$UHVSRQVHLVGHILQHGDVWUHDWPHQWLQGXFHGUHVSRQVHWKDWLVQRWFRQVLGHUHG
SHUVLVWHQW
x
1HXWUDOL]LQJ$'$LVGHILQHGDV$'$WKDWLQKLELWVRUUHGXFHVWKHSKDUPDFRORJLFDODFWLYLW\
$'$UHVSRQVHHQGSRLQWV
x $'$ LQFLGHQFH LV GHILQHG DV VXP RI WUHDWPHQWHPHUJHQW $'$ ZKLFK LQFOXGH ERWK
WUHDWPHQWLQGXFHGDQGWUHDWPHQWERRVWHG$'$SRVLWLYHSDWLHQWVDVDSURSRUWLRQRIWKH
$'$HYDOXDEOHSRSXODWLRQ
x $'$SUHYDOHQFHLVGHILQHGDVSURSRUWLRQRIDOOSDWLHQWVWKDWDUH$'$SRVLWLYHLQFOXGLQJ
SUHH[LVWLQJ$'$DWDQ\WLPHSRLQW
7KHLPPXQRJHQLFLW\UHVXOWVZLOOEHVXPPDUL]HGXVLQJGHVFULSWLYHVWDWLVWLFVE\WKHQXPEHUDQG
SHUFHQWDJH RI SDWLHQWV ZKR GHYHORS GHWHFWDEOH $'$  7KH LQFLGHQFH RI SRVLWLYH $'$ DQG
QHXWUDOL]LQJ$'$ZLOOEHUHSRUWHGIRUHYDOXDEOHSDWLHQWV

%,20$5.(5$1$/<6(6
7KHSULPDU\SUHGLFWLYHELRPDUNHUDQDO\VLVLVEDVHGRQDVXEVHWRIWKHSDWLHQWVZLWKERWKDYDOLG
3'/H[SUHVVLRQDQGRUWXPRULQILOWUDWLQJO\PSKRF\WHV7,/VPHDVXUHPHQWDQGDW OHDVW RQH
GLVHDVHDVVHVVPHQWSRVWWUHDWPHQW$VXSSRUWLYHDQDO\VLVLVEDVHGRQSDWLHQWVZLWKDYDOLG3'/
H[SUHVVLRQDQGRU7,/VPHDVXUHPHQWLUUHVSHFWLYHRIWKHDYDLODELOLW\RISRVWWUHDWPHQWGLVHDVH
DVVHVVPHQWV([SORUDWRU\DQDO\VHVRIRWKHUFDQGLGDWHSUHGLFWLYHELRPDUNHUVLQFOXGLQJEXWQRW
OLPLWHGWRJHQHH[SUHVVLRQSURILOLQJZLOOEHFRQGXFWHGVLPLODUO\

$1$/<6(62)+($/7+5(/$7('48$/,7<2)/,)(
'HVFULSWLYHVXPPDU\VWDWLVWLFVQPHDQVWDQGDUGGHYLDWLRQPHGLDQPLQLPXPPD[LPXPRI
+HDOWK5HODWHG4XDOLW\RI/LIH+54R/PHDVXUHGXVLQJ(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG
7UHDWPHQW RI &DQFHU 4XDOLW\ RI /LIH 4XHVWLRQQDLUH+HSDWRFHOOXODU &DUFLQRPD  4XHVWLRQV
(257&4/4+&&LQGH[VFRUH(XURSHDQ2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU
4XDOLW\RI/LIH4XHVWLRQQDLUH&RUH(257&4/4&LQGH[VFRUHDQGWKHOHYHOYHUVLRQ
RIWKH(XURSHDQ4XDOLW\RI/LIH'LPHQVLRQDO4XHVWLRQQDLUH(4'/ZLOOEHDSSOLHGLQWKLV
VWXG\
+54R/VFRUHVREWDLQHGIURPWKHJHQHULFTXDOLW\RIOLIHRIFDQFHUSDWLHQWV(257&4/4&
+&& VSHFLILF PRGXOH (257& 4/4+&& DQG (4'/ ZLOO EH DQDO\]HG LQ WKH 6DIHW\
3RSXODWLRQ7KHUHDUHJOREDOKHDOWKVFDOH$DURQVRQ1.HWDO)D\HUV30HWDO
ILYH IXQFWLRQDO VFDOHV SK\VLFDO UROH FRJQLWLYH HPRWLRQDO DQG VRFLDO WKUHH V\PSWRP VFDOHV
IDWLJXHSDLQDQGQDXVHDDQGYRPLWLQJDQGVL[VLQJOHLWHPVG\VSQRHDLQVRPQLDDSSHWLWHORVV
FRQVWLSDWLRQGLDUUKHDDQGILQDQFLDOGLIILFXOWLHVLQ(257&4/4&DQGVFDOHVDQGVLQJOH
LWHPVLQ(257&4/4+&&VHH$SSHQGL[
7KHPRVWUHOHYDQWVFDOHVDUH(257&&DQG+&&LQGH[VFRUHVVXEVFDOHVLQ4/4&
SK\VLFDOIXQFWLRQUROHIXQFWLRQSDLQGLDUUKHDVFDOHVDQGVXEVFDOHVLQWKH+&&GLVHDVHVSHFLILF
PRGXOHQXWULWLRQDQGERG\LPDJHVFDOH7KH\KDYHEHHQVHOHFWHGDVPRUHLPSRUWDQWGLVHDVH



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

VSHFLILF V\PSWRPV 7KH (257&+&& V\PSWRP VFRUHV FDQ DOVR SURYLGH SDWLHQWUHSRUWHG
LQGLFHV
RI
DGYHUVH
HIIHFWV
RI
WUHDWPHQW

)RUWKH(257&4/4&DQG(257&4/4+&&DWHDFKYLVLWUDZVFRUHIRUIXQFWLRQDOVFDOHV
DQGV\PSWRPVFDOHVZLOOEHFDOFXODWHGEDVHGRQTXHVWLRQQDLUHLWHPV5DZVFRUHVIRUWKHIXQFWLRQDO
VFDOHV\PSWRPVFDOHVLQJOHLWHPVZLOOEHWUDQVIRUPHGLQWRVFDOHYLDOLQHDUWUDQVIRUPDWLRQ
)RUGHWDLOVUHIHUWRWKH$SSHQGL[

7KH(4'/FRPSULVHVDGHVFULSWLYHV\VWHPDQGDQ(49LVXDO$QDORJXHVFDOH(49$6ZLWK
IROORZLQJ

GLPHQVLRQV
PRELOLW\
VHOIFDUH
XVXDO
DFWLYLWLHV
SDLQGLVFRPIRUW
DQG
DQ[LHW\GHSUHVVLRQ (DFK GLPHQVLRQ KDV  OHYHOV QR SUREOHPV VOLJKW SUREOHPV PRGHUDWH
SUREOHPVVHYHUHSUREOHPVDQGH[WUHPHSUREOHPV7KH(49$6UHFRUGVWKHUHVSRQGHQW¶VVHOI
UDWHGKHDOWKRQDWRVFDOHZLWKODEHOOHGµWKHEHVWKHDOWK\RXFDQLPDJLQH¶DQGµWKH
ZRUVWKHDOWK\RXFDQLPDJLQH¶

$QDO\VLV0HWKRG

7KHUHLVQRPXOWLSOLFLW\DGMXVWPHQWIRUWKH+54R/DQDO\VLVLQWKLVVLQJOHDUPVWXG\'HVFULSWLYH
VWDWLVWLFVZLOOEHXVHGIRUDOODQDO\VHV,QDGGLWLRQWRLQGH[VFRUHV(257&4/4&SK\VLFDO
IXQFWLRQUROHIXQFWLRQSDLQGLDUUKHDVFDOHVDQG(257&4/4+&&QXWULWLRQDQGERG\LPDJH
VFDOHKDYHEHHQVHOHFWHGDVWKHPRUHLPSRUWDQWSDUDPHWHUVDPRQJDOOVFDOHVDQGLWHPVEDVHGRQ
FOLQLFDOUHOHYDQFHDQGK\SRWKHVL]HGDVVRFLDWLRQZLWK3'WUHDWPHQW:KLOHWKHUHPDLQLQJVFDOHV
DQGLWHPVZLOOEHVXPPDUL]HGVLPLODUO\

&RPSOHWLRQUDWHV

&RPSOHWLRQUDWHVIRUWKH(257&4/4&4/4+&&DQG(4'/PRGXOHVLQWKH6DIHW\
3RSXODWLRQZLOOEHVXPPDUL]HGVHSDUDWHO\DWHDFKYLVLW$4XHVWLRQQDLUHPRGXOHLVFRQVLGHUHG
FRPSOHWHLIDOOTXHVWLRQVDUHDQVZHUHG,QDGGLWLRQWKHFRPSOHWLRQUDWHLQSDWLHQWVVWLOORQWUHDWPHQW
ZKRVHGLVFRQWLQXDWLRQGDWHLVDWOHDVWGD\VDIWHUWKHYLVLWZLOODOVREHVXPPDUL]HGLQDWDEXODU
IRUP

)RUWKRVHZKRDUHVWLOOLQWUHDWPHQWWKHUHDVRQVRIPLVVLQJ+54R/ZLOOEHGRFXPHQWHGLQWKH
GDWDVHWV

&KDQJHIURP%DVHOLQHE\9LVLW

)RUHDFKRIWKHVFDOHVLQJOHLWHPDQGLQGH[VFRUHVXPPDU\VWDWLVWLFVDWHDFKDVVHVVPHQWWLPHSRLQW
DQGFKDQJHIURPEDVHOLQHZLOOEHSUHVHQWHGLQWDEOHV

7LPHWR'HWHULRUDWLRQ&OLQLFDOO\0HDQLQJIXO:RUVHQLQJRI+54R/

7LPHWRGHWHULRUDWLRQ77'LHWLPHWRFOLQLFDOPHDQLQJIXOZRUVHQLQJLVGHILQHGDVWKHWLPHIURP
WKH ILUVW GRVH RI WLVOHOL]XPDE WR ILUVW RQVHW WLPH DW ZKLFK V\PSWRP GHFOLQHG E\ DQ LGHQWLILHG
FOLQLFDOO\LPSRUWDQWWKUHVKROGLQWHUPVRILQFUHDVHRILQGH[VFRUH$SRLQWVGLIIHUHQFHLQ4/4



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

&LVJHQHUDOO\FRQVLGHUHGFOLQLFDOO\VLJQLILFDQW$DURQVRQHWDO6LQFH4/4+&&ZDV
GHYHORSHGLQDVLPLODUDSSURDFKWKHVDPHSRLQWVGLIIHUHQFHZLOOEHXVHGLQ4/4+&&7KH
WKUHVKROGRISRLQWLVFRQVLVWHQWZLWKWKHUHVXOWVIURPDQLQWHUQDWLRQDO+&&YDOLGDWLRQVWXG\
&KLHLQZKLFKWKHDYHUDJHVWDQGDUGGHYLDWLRQVRI+&&VFDOHVDWEDVHOLQHLQ+&&
FOLQLFDOJURXSVDUHOHVVWKDQ6LQFHDFKDQJHRIKDOIDVWDQGDUGGHYLDWLRQRIWKHEDVHOLQHVFRUH
LVFRQVLGHUHGDVFOLQLFDOO\VLJQLILFDQW)UDQVLWLVUHDVRQDEOHWRXVHSRLQWDVFOLQLFDO
LPSRUWDQWWKUHVKROG3DWLHQWVZLWKRXWGHWHULRUDWLRQ1RWHGHWHULRUDWLRQPHDQVLQFUHDVHLQLQGH[
VFRUHZLOOEHFHQVRUHGDWWKHODVWGDWHDWZKLFKWKHVSHFLILFVFDOHVFRUHLVDYDLODEOHLQFOXGLQJWKRVH
ZKRGLVFRQWLQXHGWUHDWPHQWGXHWRDQ\UHDVRQVHJORVWWRIROORZXSGLVHDVHSURJUHVVLRQDQG
GHDWK

7KHPHGLDQWLPHWRFOLQLFDOPHDQLQJIXOZRUVHQLQJRI&DQG+&&ZLOOEHFDOFXODWHGXVLQJ
.DSODQ0HLHUHVWLPDWHVDQGSUHVHQWHGZLWKVLGHG&,V

(4'/
)LYH OHYHO UHVSRQVH WR (4'/ ZLOO EH VXPPDUL]HG DV D FDWHJRULFDO YDULDEOH E\ WDEXODWLQJ
IUHTXHQF\RIHDFKUHVSRQVHFDWHJRU\E\YLVLW7KHVHOIUDWHGKHDOWKVWDWHVFDOHDWHDFKYLVLWDQGLWV
FKDQJHIURPEDVHOLQHZLOOEHVXPPDUL]HGLQGHVFULSWLYHVWDWLVWLFVQPHDQVWDQGDUGGHYLDWLRQ
PHGLDQPLQLPXPPD[LPXP


,17(5,0$1$/<6,6
1RLQWHULPDQDO\VLVLVSODQQHG


&+$1*(6,17+(3/$11('$1$/<6,6
1RWDSSOLFDEOH



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/


5()(5(1&(6
$DURQVRQ1.$KPHG]DL6%HUJPDQ%%XOOLQJHU0&XOO$'XH]1-HWDO7KH(XURSHDQ
2UJDQLVDWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4/4&$TXDOLW\RIOLIHLQVWUXPHQWIRU
XVHLQLQWHUQDWLRQDOFOLQLFDOWULDOVLQRQFRORJ\-RXUQDO1DWLRQDO&DQFHU,QVWLWXWH


%URRNPH\HU5&URZOH\-$FRQILGHQFHLQWHUYDOIRUWKHPHGLDQVXUYLYDOWLPH%LRPHWULFV


&KLH:&%OD]HE\-0+VLDR&)HWDO,QWHUQDWLRQDOFURVVFXOWXUDOILHOGYDOLGDWLRQRIDQ
(XURSHDQ2UJDQL]DWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU4XHVWLRQQDLUHPRGXOHIRUSDWLHQWV
ZKLWSULPDU\OLYHUFDQFHUWKH(XURSHDQ2UJDQL]DWLRQIRU5HVHDUFKDQG7UHDWPHQWRI&DQFHU
4XDOLW\RI/LIH4XHVWLRQQDLUH+&&+HSDWRORJ\Y

&RPPRQ7R[LFLW\&ULWHULD9HUVLRQ&DQFHU7KHUDS\(YDOXDWLRQ3URJUDP-XQH

(LVHQKDXHU($7KHUDVVH3%RJDHUWV-6FKZDUW]/+6DUJHQW')RUG5HWDO1HZUHVSRQVH
HYDOXDWLRQFULWHULDLQVROLGWXPRXUV5HYLVHG5(&,67JXLGHOLQHYHUVLRQ(XU-&DQFHU


)RRGDQG'UXJ$GPLQLVWUDWLRQ&HQWHUIRU'UXJ(YDOXDWLRQ5HVHDUFK&'(5DQG&HQWHUIRU
%LRORJLFV(YDOXDWLRQDQG5HVHDUFK)'$*XLGDQFHIRU,QGXVWU\&OLQLFDO7ULDO(QGSRLQWV
IRUWKH$SSURYDORI&DQFHU'UXJVDQG%LRORJLFV

)UDQV)$1LHXZNUHN370HW56WDWLVWLFDORUFOLQLFDOLPSURYHPHQWGHWHUPLQLQJWKHPLQLPDOO\
LPSRUWDQWGLIIHUHQFHIRUWKHYDVFXODUTXDOLW\RIOLIHTXHVWLRQQDLUHLQSDWLHQWVZLWKFULWLFDOOLPE
LVFKHPLD(XURSHDQMRXUQDORIYDVFXODUDQGHQGRYDVFXODUVXUJHU\Y

*UHHQZRRG0³7KHQDWXUDOGXUDWLRQRIFDQFHU´5HSRUWVRQ3XEOLF+HDOWKDQG0HGLFDO3DWLHQWV
/RQGRQ+HU0DMHVW\¶V6WDWLRQHU\2IILFH

,QWHUQDWLRQDO &RQIHUHQFH RQ +DUPRQL]DWLRQ 1RWH IRU *XLGDQFH RQ *RRG &OLQLFDO 3UDFWLFH
&303,&+-XO\

.DSODQ(0HLHU31RQSDUDPHWULFHVWLPDWLRQIURPLQFRPSOHWHREVHUYDWLRQV-RXUQDORI$PHULFDQ
6WDWLVWLFDO$VVRFLDWLRQ

/L/0R)&KDQ6/HWDO3URJQRVWLFYDOXHVRI(257&4/4&DQG4/4+&&LQGH[
VFRUHVLQSDWLHQWVZLWKKHSDWRFHOOXODUFDUFLQRPD±FOLQLFDODSSOLFDWLRQRIKHDOWKUHODWHGTXDOLW\
RIOLIHGDWD%0&&DQFHU



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/


6KDQNDU*$UNLQ6&RFHD/HWDO$VVHVVPHQWDQG5HSRUWLQJRIWKH&OLQLFDO,PPXQRJHQLFLW\
RI7KHUDSHXWLF3URWHLQVDQG3HSWLGHV²+DUPRQL]HG7HUPLQRORJ\DQG7DFWLFDO5HFRPPHQGDWLRQV
$$36-




%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

 $33(1',;

,0387$7,212)0,66,1*3$57,$//<0,66,1*'$7(6
0LVVLQJGDWDZLOOQRWEHLPSXWHGXQOHVVRWKHUZLVHVSHFLILHG7KHLPSXWDWLRQUXOHIRUWKHVDIHW\
DQDO\VHVZLOOEHXVHGWRDGGUHVVWKHLVVXHVZLWKSDUWLDOGDWHV

L
:KHQWKHVWDUWGDWHRUHQGGDWHRIDQDGYHUVHHYHQWLVSDUWLDOO\PLVVLQJWKHGDWHZLOOEH
LPSXWHGWRGHWHUPLQHZKHWKHUWKHDGYHUVHHYHQWLVWUHDWPHQWHPHUJHQW:KHQLQGRXEWWKH
DGYHUVHHYHQWZLOOEHFRQVLGHUHGWUHDWPHQWHPHUJHQWE\GHIDXOW7KHIROORZLQJUXOHVZLOO
EHDSSOLHGWRLPSXWHSDUWLDOGDWHVIRUDGYHUVHHYHQWV

,IVWDUWGDWHRIDQDGYHUVHHYHQWLVSDUWLDOO\PLVVLQJLPSXWHDVIROORZV
x ,IERWKPRQWKDQGGD\DUHPLVVLQJDQG\HDU \HDURIWUHDWPHQWVWDUWGDWHWKHQVHWWR
WUHDWPHQWVWDUWGDWH
x ,IERWKPRQWKDQGGD\DUHPLVVLQJDQG\HDU\HDURIWUHDWPHQWVWDUWGDWHWKHQVHWWR-DQXDU\

x ,IGD\LVPLVVLQJDQGPRQWKDQG\HDU PRQWKDQG\HDURIWUHDWPHQWVWDUWGDWHWKHVHWWR
WUHDWPHQWVWDUWGDWH
x ,IGD\LVPLVVLQJDQGPRQWKDQG\HDUPRQWKDQG\HDURIWUHDWPHQWVWDUWGDWHWKHVHWWR
ILUVWRIWKHPRQWK
,I\HDURIWKHVWDUWGDWHLVPLVVLQJRUVWDUWGDWHLVFRPSOHWHO\PLVVLQJGRQRWLPSXWH
,IHQGGDWHRIDQDGYHUVHHYHQWLVSDUWLDOO\PLVVLQJLPSXWHDVIROORZV
x ,IERWKPRQWKDQGGD\DUHPLVVLQJWKHQVHWWR'HFHPEHU
x ,IRQO\GD\LVPLVVLQJWKHQVHWWRODVWGD\RIWKHPRQWK
,I\HDURIWKHHQGGDWHLVPLVVLQJHQGGDWHLVFRPSOHWHO\PLVVLQJGRQRWLPSXWH
LL
:KHQ WKH VWDUW GDWH RU HQG GDWH RI D PHGLFDO RU GLVHDVH KLVWRU\PHGLFDWLRQWKHUDS\
V\VWHPLF RU UDGLRWKHUDS\VXUJHU\ RU SURFHGXUH LV SDUWLDOO\ PLVVLQJ WKH GDWH ZLOO EH
LPSXWHGWRGHWHUPLQHZKHWKHUWKHPHGLFDORUGLVHDVHKLVWRU\PHGLFDWLRQWKHUDS\V\VWHPLF
RUUDGLRWKHUDS\VXUJHU\RUSURFHGXUHLVSULRURUFRQFRPLWDQWRUSRVW7KHIROORZLQJUXOHV
ZLOOEHDSSOLHGWRLPSXWHSDUWLDOGDWHV
,IWKHVWDUWGDWHLVSDUWLDOO\PLVVLQJLPSXWHDVIROORZV
x ,IERWKPRQWKDQGGD\DUHPLVVLQJWKHQVHWWR-DQXDU\
x ,IRQO\GD\LVPLVVLQJWKHQVHWWRWKHILUVWRIWKHPRQWK
,IWKHHQGGDWHLVSDUWLDOO\PLVVLQJLPSXWHDVIROORZV
x ,IERWKPRQWKDQGGD\DUHPLVVLQJWKHQVHWWR'HFHPEHU
x ,IRQO\GD\LVPLVVLQJWKHQVHWWRODVWGD\RIWKHPRQWK



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

,IWKH\HDURIVWDUWGDWHRU\HDURIHQGGDWHRIDPHGLFDWLRQWKHUDS\SURFHGXUHLVPLVVLQJRUWKH
VWDUWGDWHRUHQGGDWHLVFRPSOHWHO\PLVVLQJGRQRWLPSXWH
,IWKHGDWHLVNQRZQWREHSULRUVWXG\WUHDWPHQWHJIRUPHGLFDOKLVWRU\GLVHDVHKLVWRU\RUSULRU
WKHUDSLHVHWFWKHLPSXWHGGDWHVKRXOGEHFRPSDUHGDJDLQVWWKHILUVWGRVHGDWH,ILWLVDIWHUWKH
ILUVWGRVHGDWHWKHQUHSODFHWKHLPSXWHGGDWHZLWKWKHILUVWGRVHGDWH±
,IWKHGDWHLVNQRZQWREHSRVWVWXG\WUHDWPHQWHJIRUSRVWWUHDWPHQWVXEVHTXHQWWKHUDSLHVWKH
LPSXWHGGDWHVKRXOGEHFRPSDUHGDJDLQVWWKHODVWGRVHGDWH,ILWLVEHIRUHWKHODVWGRVHGDWHWKHQ
UHSODFHWKHLPSXWHGGDWHZLWKWKHODVWGRVHGDWH

+($/7+5(/$7('48$/,7<2)/,)(
+54R/VFRUHVREWDLQHGIURPWKHJHQHULFTXDOLW\RIOLIHRIFDQFHUSDWLHQWV(257&4/4&
+&&VSHFLILFPRGXOH(257&4/4+&&DQG(4'/ZLOOEHDQDO\]HGLQWKH6DIHW\
3RSXODWLRQ7KHUHDUHJOREDOKHDOWKVWDWXVVFDOHVDQGVLQJOHLWHPVLQ(257&4/4&
DQGVFDOHVDQGVLQJOHLWHPVLQ(257&4/4+&&7KH(257&4/4&DQG+&&
LQGH[VFRUHV/LDQGVFDOHVFRUHVZLOOEHFDOFXODWHGDVGHVFULEHGEHORZ

6FDOH'HULYDWLRQ

6FRULQJ3URFHVV
7KHSULQFLSOHIRUVFRULQJDSSOLHVWRDOOVFDOHVVFRUHV5DZVFRUHVDUHFDOFXODWHGDVWKHDYHUDJHRI
WKHLWHPVWKDWFRQWULEXWHWRWKHVFDOH

$OLQHDUWUDQVIRUPDWLRQWRVWDQGDUGL]HWKHUDZVFRUHVLVXWLOL]HGVRWKDWWKHVFRUHVDUHUDQJHG
IURPWR,QFUHDVHVLQVFRUHVIRUIXQFWLRQDOGRPDLQVHJSK\VLFDOUROHVRFLDOHPRWLRQDO
HWFDUHLPSURYHPHQWVZKLOHLQFUHDVHVLQVFRUHVIRUV\PSWRPVHJIDWLJXHYRPLWLQJDQG
QDXVHDGLDUUKHDSDLQHWFDUHGHWHULRUDWLRQV

0LVVLQJ,WHPV
,QWKLVWULDODQH352V\VWHPZLOOUHTXLUHSDWLHQWVWRFRPSOHWHDOO3DWLHQW5HSRW2XWFRPH352
TXHVWLRQVDOWKRXJKLWFDQEHLQWHUUXSWHGLQZKLFKFDVHWKHIRUPZLOOVDYHDV³LQFRPSOHWH´DQG
DOORZWKHSDWLHQWWRFKRRVHWRHLWKHUUHVWDUWWKHIRUPRUFRPSOHWHWKHUHPDLQGHURILW
,QFDVHRIDQ³LQFRPSOHWH´IRUPLQWKHDQDO\VLVDOOWKHFRPSOHWHGLWHPVFRXOGEHXVHGWR
FDOFXODWHWKHVFRUHLIDWOHDVWKDOIRIWKHLWHPVIRUDVFDOHDUHDQVZHUHG2WKHUZLVHWKHVFDOHVFRUH
LVVHWWRPLVVLQJ

5DZ6FRUH
)RUDOOVFRUHVWKHUDZVFRUH56LVWKHPHDQRIWKHFRPSRQHQWLWHPV
56 OO«OQQ

'HULYHG6FDOH
7KHGHULYHGVFDOHVDUHREWDLQHGIURPWKHUDZVFRUHVDVGHILQHGLQWKH(257&PDQXDO7KH
GHULYHGVFDOHVKDYHDPRUHLQWXLWLYHLQWHUSUHWDWLRQODUJHUIXQFWLRQVFDOHRUJOREDOKHDOWKVWDWXV



%HL*HQH86$,QF
%*%$
6WDWLVWLFDO$QDO\VLV3ODQ


9HUVLRQ
3DJHRI
&21),'(17,$/

4R/DUHLPSURYHPHQWVZKLOHODUJHUV\PSWRPVFDOHVHJSDLQQDXVHDHWFDUHGHWHULRUDWLRQV

7KHGHULYDWLRQIRUPXODVDUHDVIROORZV

'HULYHGIXQFWLRQVFDOHV\PSWRPVFDOHDQGLQGH[VFDOH

6FRUH >56UDQJH@

+&&LQGH[ဨVFRUH VFRUHVRI)DWLJXH%RG\LPDJH-DXQGLFH1XWULWLRQ3DLQ)HYHU6H[
OLIH$EGRPLQDOGLVWHQVLRQ·

&LQGH[ဨVFRUH >ဨ3K\VLFDOIXQFWLRQLQJဨ5ROHIXQFWLRQLQJဨ(PRWLRQDO
IXQFWLRQLQJဨ&RJQLWLYHIXQFWLRQLQJဨ6RFLDOIXQFWLRQLQJဨJOREDO42/VFRUHVRI
)DWLJXH1DXVHD9RPLWLQJ3DLQ'\VSQRHD,QVRPQLD$SSHWLWHORVV&RQVWLSDWLRQ'LDUUKHD
)LQDQFLDO'LIILFXOW\@·



