Clinical trial NCT01959139
Conditions: Metastatic Pancreatic Adenocarcinoma
Sponsor: SWOG Cancer Research Network
Start date: 2014-01-23; Completion date: 2023-11-09
Enrollment: 126 participants; Allocation: RANDOMIZED; Intervention model: PARALLEL

Brief summary:
This partially randomized phase I/II trial studies the side effects and best dose of pegylated recombinant human hyaluronidase (PEGPH20) when given together with combination chemotherapy and to see how well they work compared with combination chemotherapy alone in treating patients with newly diagnosed pancreatic cancer that has spread to other places in the body. Pegylated recombinant human hyaluronidase may help chemotherapy drugs work better by making tumor cells more sensitive to the drugs. Drugs used in chemotherapy, such as leucovorin calcium, fluorouracil, irinotecan hydrochloride, and oxaliplatin, work in different ways to stop the growth of tumor cells, either by killing the cells, by stopping them from dividing, or by stopping them from spreading. It is not yet known whether combination chemotherapy is more effective with or without pegylated recombinant human hyaluronidase in treating pancreatic cancer.

Detailed description:
PRIMARY OBJECTIVES:

I. To assess the safety of modified leucovorin calcium, fluorouracil, irinotecan hydrochloride and oxaliplatin (mFOLFIRINOX) in combination with PEGPH20 and select the optimal dose of PEGPH20 for the phase II portion in patients with metastatic pancreatic adenocarcinoma. (Phase I) II. To assess the overall survival of patients with metastatic pancreatic adenocarcinoma treated with mFOLFIRINOX + PEGPH20 compared to those treated with mFOLFIRINOX alone. (Phase II)

SECONDARY OBJECTIVES:

I. To assess progression free survival (PFS) in patients receiving mFOLFIRINOX with PEGPH20 and patients receiving mFOLFIRINOX alone in this patient population.

II. To assess objective tumor response (confirmed and unconfirmed, complete and partial) in patients with measurable disease treated with mFOLFIRINOX with PEGPH20 and patients receiving mFOLFIRINOX alone in this patient population.

III. To determine the frequency, severity, and tolerability of adverse events of mFOLFIRINOX with PEGPH20.

TERTIARY OBJECTIVES:

I. To explore the correlation of maximum decrease in cancer antigen (CA) 19-9 levels and time to maximum decrease in CA 19-9 levels with overall survival, progression-free survival and response.

II. To explore the correlation of plasma hyaluronan (HA) and tumor expression of HA with overall survival, progression-free survival and response.

OUTLINE: This is a phase I, dose de-escalation study of pegylated recombinant human hyaluronidase followed by a randomized phase II study.

PHASE I: Patients receive pegylated recombinant human hyaluronidase intravenously (IV) over 10 minutes on day 1\*; oxaliplatin IV over 2 hours, leucovorin calcium IV over 2 hours, and irinotecan hydrochloride IV over 1.5 hours on day 2; and fluorouracil IV over 46 hours on days 2-4. Courses repeat every 14 days in the absence of disease progression or unacceptable toxicity.

PHASE II: Patients are randomized to 1 of 2 treatment arms.

ARM I: Patients receive oxaliplatin IV over 2 hours, leucovorin calcium IV over 2 hours, and irinotecan hydrochloride IV over 1.5 hours on day 2, and fluorouracil IV over 46 hours on days 2-4. Courses repeat every 14 days in the absence of disease progression or unacceptable toxicity.

ARM II: Patients receive pegylated recombinant human hyaluronidase IV over 10 minutes on day 1\* and oxaliplatin, leucovorin calcium, irinotecan hydrochloride, and fluorouracil as in Arm I. Courses repeat every 14 days in the absence of disease progression or unacceptable toxicity.

\*NOTE: Some patients also receive pegylated recombinant human hyaluronidase on day 3 or 4 of courses 1 and 2.

After completion of study treatment, patients are followed up for 3 years.

Arms: arm 1: Patients receive oxaliplatin IV over 2 hours, leucovorin calcium IV over 2 hours, and irinotecan hydrochloride IV over 1.5 hours on day 2, and 5-fluorouracil (5-FU) IV over 46 hours on days 2-4. Courses repeat every 14 days in the absence of disease progression or unacceptable toxicity. arm 2: Patients receive pegylated recombinant human hyaluronidase (PEGPH20) IV over 10 minutes on day 1 and oxaliplatin, leucovorin calcium, irinotecan hydrochloride, and 5-fluorouracil (5-FU) as in Arm I. Courses repeat every 14 days in the absence of disease progression or unacceptable toxicity. arm 3: PEGPH20, 3 ug/kg on Day 1 and Day 3/4, IV over 15 minutes; Oxaliplatin, 85 mg/m\^2, on Day 2, IV over 2 hours; Leucovorin, 400 mg/m\^2, on Day 2, IV over 2 hours; Irinotecan, 180 mg/m\^2, on Day 2, IV over 1.5 hours; 5-fluorouracil (5-FU), 2,400 mg/m\^2, Days 2-4, IV over 46 hours
Interventions: intervention 1: PEGPH20 intervention 2: Oxaliplatin intervention 3: Leucovorin intervention 4: Irinotecan intervention 5: 5-fluorouracil
Intervention descriptions: intervention 1: 3 ug/kg on Day 1, IV over 15 minutes intervention 2: 85 mg/m\^2, on Day 2, IV over 2 hours intervention 3: 400 mg/m\^2, on Day 2, IV over 2 hours intervention 4: 180 mg/m\^2, on Day 2, IV over 1.5 hours intervention 5: 2,400 mg/m\^2, Days 2-4, IV over 46 hours

Protocol documents:
Prot_SAP_ICF_000.pdf: 
6

3DJH

9HUVLRQ'DWH
35,9,/(*('&20081,&$7,21
'LVWULEXWHGIRU,5%5HYLHZ2QO\
)25,19(67,*$7,21$/86(21/<
$FWLYDWHG



6:2*

7,7/(
$3+$6(,%,,5$1'20,=('678'<2)02',),(')2/),5,12;3(*</$7('5(&20%,1$17
+80$1+<$/8521,'$6(3(*3+9(568602',),(')2/),5,12;$/21(,13$7,(176
:,7+*22'3(5)250$1&(67$7860(7$67$7,&3$1&5($7,&$'(12&$5&,120$

1&7

678'<&+$,56
$*(176
5DPHVK.5DPDQDWKDQ0'0HGLFDO2QFRORJ\
,1'([HPSW$JHQWV
0D\R&OLQLF$UL]RQD
(QR[DSDULQ/RYHQR[16&
'LYLVLRQRI+HPDWRORJ\2QFRORJ\
)LOJUDVWLPUPHK+X*&6)1HXSRJHQ
(6KHD%RXOHYDUG

16&
6FRWWVGDOH$=
)OXRURXUDFLO)8$GUXFLO16&
3KRQH
,ULQRWHFDQ&3716&
)$;
/HXFRYRULQ16&
(PDLOUDPDQDWKDQUDPHVK#PD\RHGX
2[DOLSODWLQ(OR[DWLQ16&

3HJILOJUDVWLP1HXODVWD16&
6XQLO+LQJRUDQL7UDQVODWLRQDO0HGLFLQH

)UHG+XWFKLQVRQ&DQFHU5HVHDUFK&HQWHU
6:2*+HOG,1'$JHQWV
1(3DFLILF6W
3HJ\ODWHG5HFRPELQDQW+XPDQ+\DOXURQLGDVH
6HDWWOH:$
3(*3+16&,1'
3KRQH

)$;

(PDLOVUK#IKFUFRUJ
%,267$7,67,&,$16

3KLOLS3KLOLS0'0HGLFDO2QFRORJ\
6KDQQRQ0F'RQRXJK06

.DUPDQRV&DQFHU,QVWLWXWH
.DWKHULQH$*XWKULH3K'
+HPDWRORJ\2QFRORJ\
6:2*6WDWLVWLFDO&HQWHU
-RKQ5+:&5&
)UHG+XWFKLQVRQ&DQFHU5HVHDUFK&HQWHU
'HWURLW0,
)DLUYLHZ$YHQXH10&
3KRQH
32%R[

)$;
3KRQH
(PDLOSKLOLSS#NDUPDQRVRUJ
)$;

(PDLOVPFGRQRX#IKFUFRUJ

(PDLONJXWKULH#IKFUFRUJ



CLOSED EFFECTIVE 07/01/2017
$17
(176
176
20$
20$
[
[ 16&
16&

+X*
X*&6)1H
&6)1

LO)8$GUXF
)8$GUXF
&37
&
16
16
RULQ16&
RULQ16 
SODWLQ(OR[DWLQ
DWLQ(OR[DW
JILOJUDVWLP1H
JILOJUDVWLP1H
6:2*
6:2 +HOG
+H
3HJ\ODWHG
3HJ\ODW
3(*3
3(
J\
\
DUPDQRVR
DUPDQRV UJ


6

3DJH

9HUVLRQ'DWH
3$57,&,3$176

3KDVH,
6:2*
$=8QLYHUVLW\RI$UL]RQD
&$8QLYHUVLW\RI6RXWKHUQ&DOLIRUQLD
&$&LW\RI+RSH
&28QLYHUVLW\RI&RORUDGR
&7<DOH8QLYHUVLW\
0,:D\QH6WDWH8QLYHUVLW\
:$8QLYHUVLW\RI:DVKLQJWRQ

3+$6(,,
6:2*6:2*

CLOSED EFFECTIVE 07/01/2017
01
17


6

3DJH

9HUVLRQ'DWH
7$%/(2)&217(176

7,7/(  
3$57,&,3$176 
7$%/(2)&217(176 
6&+(0$ 
 
2%-(&7,9(6 
 
3ULPDU\3KDVH,2EMHFWLYH 
 
3ULPDU\3KDVH,,2EMHFWLYH 
 
6HFRQGDU\2EMHFWLYHV 
 
7UDQVODWLRQDO2EMHFWLYHV 
 
%$&.*5281' 
 
'58*,1)250$7,21 
 
(QR[DSDULQ/RYHQR[16& 
 
)LOJUDVWLPUPHW+X*&6)1HXSRJHQ16& 
 
)OXRURXUDFLO)8$GUXFLO16& 
 
,ULQRWHFDQ&DPSWRVDU16& 
 
/HXFRYRULQ16& 
 
2[DOLSODWLQ(OR[DWLQ16& 
 
3HJILOJUDVWLP1HXODVWD16& 
 
3HJ\ODWHG5HFRPELQDQW+XPDQ+\DOXURQLGDVH3(*3+16&,1' 
 
67$*,1*&5,7(5,$ 
 
(/,*,%,/,7<&5,7(5,$ 
 
'LVHDVH5HODWHG&ULWHULD 
 
&OLQLFDO/DERUDWRU\&ULWHULD 
 
6SHFLPHQ6XEPLVVLRQ&ULWHULD 
 
5HJXODWRU\&ULWHULD 
 
675$7,),&$7,21)$&7256 
 
75($70(173/$1 
 
7UHDWPHQW2YHUYLHZ 
 
3UH0HGLFDWLRQ 
 
3KDVH, 
 
3KDVH,, 
 
&ULWHULDIRU5HPRYDOIURP3URWRFRO7UHDWPHQW 
 
'LVFRQWLQXDWLRQRI7UHDWPHQW 
 
)ROORZ8S3HULRG 
 
72;,&,7,(672%(021,725('$1''26(02',),&$7,216 
 
1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV 
 
*HQHUDO&RQVLGHUDWLRQV 
 
7R[LFLWLHV7R%H0RQLWRUHG 
 
'RVH0RGLILFDWLRQVIRUP)2/),5,12; 
 
'RVH0RGLILFDWLRQVIRU3(*3+ 
 
'RVH0RGLILFDWLRQVIRU3HJILOJUDVWLPRU)LOJUDVWLP 
 
'RVH0RGLILFDWLRQV&RQWDFWV 
 
$GYHUVH(YHQW5HSRUWLQJ 
 
678'<&$/(1'$5 
 
&5,7(5,$)25(9$/8$7,21$1'(1'32,170($685$%,/,7<2)/(6,216 
 
0HDVXUDELOLW\RI/HVLRQV 
 
2EMHFWLYH6WDWXVDW(DFK'LVHDVH(YDOXDWLRQ 
 
%HVW5HVSRQVH 
 
3HUIRUPDQFH6WDWXV 
 
3URJUHVVLRQ)UHH6XUYLYDO 
 
7LPHWR'HDWK 
 
67$7,67,&$/&216,'(5$7,216 
 
$FFUXDO*RDOV 
 
3KDVH,%5XQ,Q 
 
3KDVH,,7ULDO 
 
7UDQVODWLRQDO0HGLFLQH 
CLOSED EFFECTIVE 07/01/2017




 

 




















16&
6&

























URWRFRO7UHDWP
URWRFRO7UHDWP
PHQW
HQW 



021
021,725('
,725('
UPLQRORJ\&ULWH
PLQRORJ\&U
HUDWLRQV
DWLRQV 

%H0RQLWRUHG
%H0RQLWRUHG
LILFDWLRQVIRUP
ILFDWLRQV
RGLILFDWLRQVIR
RGLILFDWLRQV
H0RGLILFDWLRQV
0RGLILFDWLRQV
VH0RGLILFDWLR
0RGLILFDWLR
$GYHUVH(YHQ
$GYHUVH(YHQ
678'<&$
678'<&$

&5,7(5,
&5,7(5


0HDVX
0H


2EMH
2EM


%








6

3DJH

9HUVLRQ'DWH
 
'DWDDQG6DIHW\0RQLWRULQJ 
 
',6&,3/,1(5(9,(: 
 
5(*,675$7,21*8,'(/,1(6 
 
5HJLVWUDWLRQ7LPLQJ 
 
6ORW5HVHUYDWLRQ3KDVH, 
 
23(15HJLVWUDWLRQ5HTXLUHPHQWV 
 
5HJLVWUDWLRQ3URFHGXUHV 
 
([FHSWLRQVWR6:2*UHJLVWUDWLRQSROLFLHVZLOOQRWEHSHUPLWWHG 
 
'$7$68%0,66,216&+('8/( 
 
'DWD6XEPLVVLRQ5HTXLUHPHQW 
 
0DVWHU)RUPV 
 
'DWD6XEPLVVLRQ3URFHGXUHV 
 
'DWD6XEPLVVLRQ2YHUYLHZDQG7LPHSRLQWV 
 
63(&,$/,16758&7,216 
 
&RUUHODWLYH6WXGLHVDQG%DQNLQJ 
 
3KDVH,3RUWLRQ0DQGDWRU\&RQIHUHQFH&DOOV 
 
(7+,&$/$1'5(*8/$725<&216,'(5$7,216 
 
$GYHUVH(YHQW5HSRUWLQJ5HTXLUHPHQWV 
 
%,%/,2*5$3+< 
 
$33(1',; 
 
7UDQVODWLRQDO0HGLFLQH6WXGLHV 
CLOSED EFFECTIVE 07/01/2017












 





















6

3DJH

9HUVLRQ'DWH
6&+(0$

3KDVH,SRUWLRQRSHQWROLPLWHGLQVWLWXWLRQV
3(*3+P)2/),5,12;
7HPSRUDU\FORVXUHWRDVVHVV3KDVH,,GRVH
















3KDVH,,SRUWLRQ



5DQGRPL]DWLRQ




$UPP)2/),5,12;
$UP3(*3+P)2/),5,12;
3URJUHVVLRQ
2IIWUHDWPHQW
3DWLHQWVZLOOEHHQUROOHGLQWRHLWKHUWKH3KDVH,SRUWLRQRUWKH3KDVH,,SRUWLRQQRWERWK
CLOSED EFFECTIVE 07/01/2017
DVH,,SRUWLRQ
DVH,,SRUWL
5DQGR
5DQG
2/),5,12;
2/),5,12
3DWL
3DW
CT
FFE
FF
F


6

3DJH

9HUVLRQ'DWH

2%-(&7,9(6


3ULPDU\3KDVH,2EMHFWLYH

D
7KH SULPDU\ REMHFWLYH RI WKH 3KDVH , SRUWLRQ ZLOO EH WR DVVHVV WKH VDIHW\ RI
P)2/),5,12; LQ FRPELQDWLRQ ZLWK 3(*3+ DQG VHOHFW WKH RSWLPDO GRVH RI
3(*3+ IRU WKH 3KDVH ,, SRUWLRQ LQ SDWLHQWV ZLWK PHWDVWDWLF SDQFUHDWLF
DGHQRFDUFLQRPD


3ULPDU\3KDVH,,2EMHFWLYH

D
7R DVVHVV WKH RYHUDOO VXUYLYDO RI SDWLHQWV ZLWK PHWDVWDWLF SDQFUHDWLF
DGHQRFDUFLQRPD WUHDWHG ZLWK P)2/),5,12;  3(*3+ FRPSDUHG WR WKRVH
WUHDWHGZLWKP)2/),5,12;DORQH


6HFRQGDU\2EMHFWLYHV

D
7RDVVHVVSURJUHVVLRQIUHHVXUYLYDO3)6LQSDWLHQWVUHFHLYLQJP)2/),5,12;
ZLWK 3(*3+ DQG SDWLHQWV UHFHLYLQJ P)2/),5,12; DORQH LQ WKLV SDWLHQW
SRSXODWLRQ

E
7RDVVHVVREMHFWLYHWXPRUUHVSRQVHFRQILUPHGDQGXQFRQILUPHGFRPSOHWHDQG
SDUWLDO LQ SDWLHQWV ZLWK PHDVXUDEOH GLVHDVH WUHDWHG ZLWK P)2/),5,12; ZLWK
3(*3+DQGSDWLHQWVUHFHLYLQJP)2/),5,12;DORQHLQWKLVSDWLHQWSRSXODWLRQ

F
7R GHWHUPLQH WKH IUHTXHQF\ VHYHULW\ DQG WROHUDELOLW\ RI DGYHUVH HYHQWV RI
P)2/),5,12;ZLWK3(*3+


7UDQVODWLRQDO2EMHFWLYHV

D
7RH[SORUHWKHFRUUHODWLRQRIPD[LPXPGHFUHDVHLQ&$OHYHOVDQGWLPHWR
PD[LPXP GHFUHDVH LQ &$  OHYHOV ZLWK RYHUDOO VXUYLYDO SURJUHVVLRQIUHH
VXUYLYDODQGUHVSRQVH

E
7RH[SORUHWKHFRUUHODWLRQRISODVPDK\DOXURQDQ+$DQGWXPRUH[SUHVVLRQRI
+$ZLWKRYHUDOOVXUYLYDOSURJUHVVLRQIUHHVXUYLYDODQGUHVSRQVH



%$&.*5281'

2YHUYLHZ
7KHRXWFRPHRISDWLHQWVZLWKPHWDVWDWLFSDQFUHDWLFFDQFHU3&UHPDLQVYHU\SRRU8QWLOUHFHQWO\
JHPFLWDELQHZDVWKHRQO\DJHQWZLWKUHSURGXFLEOHDFWLYLW\DQGUHVXOWLQJLQDPHGLDQVXUYLYDORI
RQO\PRQWKV'HVSLWHDWWHPSWVWRLPSURYHWKHRXWFRPHE\DGGLQJDVHFRQGDJHQWWR
JHPFLWDELQH QR ZRUWKZKLOH SURJUHVV KDV EHHQ PDGH WKXV IDU 2QH VLQJOH 3KDVH ,,, VWXG\ RI
JHPFLWDELQHZLWKHUORWLQLEKDGDVWDWLVWLFDOO\EHWWHURYHUDOOVXUYLYDOIRUWKHFRPELQDWLRQDUPEXW
WKLV ZDV RI QR PHDQLQJIXO FOLQLFDO EHQHILW  7KHUH DUH JURXQGV IRU RSWLPLVP DV WZR QHZ
UHJLPHQVJHPFLWDELQHQDESDFOLWD[HODQG)2/),5,12;KDYHHPHUJHGDVIURQWOLQHRSWLRQV7KH
JHPFLWDELQHQDESDFOLWD[HO UHJLPHQ ZDV HYDOXDWHG LQ D 3KDVH ,,, VWXG\ DQG ILQGLQJV ZHUH
SUHVHQWHGUHFHQWO\,QWKLVVWXG\SDWLHQWVZHUHUDQGRPL]HGWRHLWKHUJHPFLWDELQHDORQHRUWR
WKHFRPELQDWLRQRIJHPFLWDELQHDQGQDESDFOLWD[HO7KHRYHUDOOVXUYLYDOZDVYVPRQWKV3
 LQIDYRURIWKHFRPELQDWLRQDUP7KHRWKHUUHJLPHQZKLFKLVQRZFRPPRQO\XVHG
LV )2/),5,12; )8 OHXFRYRULQ LULQRWHFDQ DQG R[DOLSODWLQ ZKLFK KDV VKRZQ VLJQLILFDQW
LPSURYHPHQWLQVXUYLYDORISDWLHQWVZLWKIDYRUDEOHSHUIRUPDQFHVWDWXVFRPSDUHGWRJHPFLWDELQH
DORQHDQGKDVEHFRPHDQHZVWDQGDUGIRUSDWLHQWVZLWKDGYDQFHG3&6LJQLILFDQWDGYDQFHV
KDYHEHHQPDGHLQXQGHUVWDQGLQJWKHELRORJ\DQGPROHFXODUSDWKRORJ\RISDQFUHDWLFFDQFHU7KH
GHQVH VWURPDO UHDFWLRQ WKDW LV FKDUDFWHULVWLF RI WKLV GLVHDVH KDV HPHUJHG DV D FULWLFDO IDFWRU
OLPLWLQJ F\WRWR[LF GUXJ GHOLYHU\ GHYHORSPHQW RI GUXJ UHVLVWDQFH DQG SURPRWLQJ LQYDVLRQ DQG
CLOSED EFFECTIVE 07/01/2017
I
DWLF
LF
DWLF SDQFUHDW
DWLF SDQFUHDW
RPSDUHG WR WK
SDUHG WR W
HQWVUHFHLYLQJ
HQWVUHFHLYLQJ
/),5,12; DOR
,5,12; D
QILUPHGDQGX
QILUPHGDQG
GLVHDVH WUHDWH
GLVHDVH
)2/),5,12;
2/),5,12;
VHYHULW\ DQG
VHYHULW\ DQG


UUHODWLRQRIPD
UUHODWLRQRIP
DVH LQ &$ 
DVH LQ &$ 
HVSRQVH
HVSRQVH
RUHWKHFRUUHOD
UHWKHFRUUHOD
WKRYHUDOOVXUY
KRYHUDOOVX
'
FRPHRISDWLH
FRPHRISDW
FLWDELQHZDVW
FLWDELQHZDVW
O\
\PRQWKV
PRQWKV
JHPFLWDELQH
JHPFLWDELQH
JHPFLWDELQH
JHPFLWDELQH
WKLV ZDV
WKLV ZDV
UHJLPH
HJ
JHP
JHP
S


6

3DJH

9HUVLRQ'DWH
PHWDVWDVHV 3UHFOLQLFDO VWXGLHV KDYH VKRZQ WKDW HIIHFWLYH WDUJHWLQJ RI FDQFHU FHOOV PD\ EH
DFKLHYHGE\GHJUDGLQJDQGGHSOHWLQJWKHVXUURXQGLQJVWURPDOVWUXFWXUHVRI3&E\DJHQWVVXFKDV
K\DOXURQLGDVH7KHVWXGLHVGHVFULEHGEHORZVXSSRUWWKHUDWLRQDOHIRUWKLVSURSRVDO

)2/),5,12;
7KH352',*(VWXG\RI)2/),5,12;VKRZHGLPSURYHPHQWLQPHGLDQVXUYLYDORISDWLHQWVZLWK
PHWDVWDWLFSDQFUHDVFDQFHURIRYHUPRQWKVZKHQFRPSDUHGWRJHPFLWDELQHDORQHLQSDWLHQWV
ZLWKIDYRUDEOHSHUIRUPDQFHVWDWXV DQGJRRG OLYHUIXQFWLRQ 7KLV3KDVH,,,VWXG\UDQGRPL]HG
 SDWLHQWV ZLWK QR SULRU F\WRWR[LF FKHPRWKHUDS\ WR VLQJOH DJHQW JHPFLWDELQH RU WR
)2/),5,12;:LWKDPHGLDQIROORZXSWLPHRIPRQWKVWKHSULPDU\HQGSRLQWRIPHGLDQ26
ZDV VLJQLILFDQWO\ LPSURYHG IRU SDWLHQWV UHFHLYLQJ )2/),5,12;  YV  PRQWKV IRU
JHPFLWDELQH3DQG3)6ZDVYVPRQWKVUHVSHFWLYHO\3&RPSDUHG
ZLWKJHPFLWDELQH*UDGHDGYHUVHHYHQWVZHUHVLJQLILFDQWO\JUHDWHUZLWK)2/),5,12;WKHVH
LQFOXGHG QHXWURSHQLDYVIHEULOHQHXWURSHQLDYVYRPLWLQJ YV
 IDWLJXH  YV  DQG GLDUUKHD  YV  +HPDWRSRLHWLF JURZWK IDFWRU
VXSSRUWZDVUHTXLUHGIRU!RISDWLHQWV3ULRUDEGRPLQDOUDGLDWLRQZDVQRWDOORZHGDQGVWXG\
ZDVFRQILQHGWRJRRG36SDWLHQWV)2/),5,12;HVSHFLDOO\LQLWVPRGLILHGIRUPKDVQRZ
EHFRPH D VWDQGDUG DQG LWV XVH E\ FRPPXQLW\ RQFRORJLVWV LQ 86$ LV VWHDGLO\ LQFUHDVLQJ ZLWK
UHSRUWVRIDFFHSWDEOHVDIHW\DQGHIILFDF\LQFDUHIXOO\VHOHFWHGSDWLHQWV

3DQFUHDWLFWXPRUPLFURHQYLURQPHQW
3DQFUHDWLF FDQFHU LV NQRZQ WR EH YHU\ K\SRYDVFXODU ZLWK DQ H[WHQVLYH GHVPRSODVWLF UHDFWLRQ
FRQVLVWLQJRIDYDULHW\RIVWURPDOFHOOVVXFKDVSDQFUHDWLFVWHOODWHFHOOVDFWLYDWHGILEUREODVWVDQG
LQIODPPDWRU\FHOOVWKDWDUHHPEHGGHGLQDGHQVHH[WUDFHOOXODUPDWUL[7KLVPDWUL[FRQVLVWVPDLQO\
RIFROODJHQVDQGJO\FRVDPLQRJO\FDQVDQGKDVEHHQVKRZQWRLPSHGHGUXJGHOLYHU\WRWKHWXPRU
FHOOV   8QGHUVWDQGLQJ WKH ELRORJ\ RI VWURPD DQG GHYHORSLQJ HIIHFWLYH WUHDWPHQW VWUDWHJLHV
ZHUHRQO\SRVVLEOHZLWKEUHDNWKURXJKVLQJHQHWLFDOO\HQJLQHHUHGPRXVHSDQFUHDWLFWXPRUPRGHOV
7KHVH PRGHOV PLUURU KXPDQ SDQFUHDWLF FDQFHU SURJUHVVLRQ DUH .UDV PXWDWHG DQG KDYH DQ
LQWHQVH ILEUREODVWLF UHDFWLRQ WKDW LV LQGLVWLQJXLVKDEOH IURP WKDW RI KXPDQ 3& 7ZR ODQGPDUN
VWXGLHV KDYH EHHQ UHFHQWO\ UHSRUWHG XVLQJ WKHVH PRXVH PRGHOV VKRZLQJ WKH LPSRUWDQFH RI
WDUJHWLQJ K\DOXURQDQ +$ D QRQVXOSKDWHG JO\FRVDPLQRJO\FDQ WKDW IRUPV WKH EXON RI WKH
H[WUDFHOOXODUPDWUL[LQ3&

,Q WKH ILUVW VWXG\ IURP 'U +LQJRUDQL¶V /DE DW WKH )UHG +XWFKLQVRQ &DQFHU 5HVHDUFK &HQWHU
6HDWWOHDQXPEHURILPSRUWDQWILQGLQJVZHUHPDGH
D 7KH VWURPD VXUURXQGLQJ WKH SDQFUHDWLF WXPRU JHQHUDWHG YHU\ KLJK LQWHUVWLWLDO IOXLG
SUHVVXUHV ,)3V H[FHHGLQJ WKRVH SUHYLRXVO\ PHDVXUHG IRU RWKHU VROLG WXPRUV DQG
LQGXFHGYDVFXODUFROODSVHZKLOHSUHVHQWLQJVXEVWDQWLDOEDUULHUVWRSHUIXVLRQGLIIXVLRQDQG
GHOLYHU\RIWKHUDSHXWLFDJHQWV
E +$ ZDV LGHQWLILHG DV WKH SULPDU\ PDWUL[ GHWHUPLQDQW RI WKHVH EDUULHUV DQG V\VWHPLF
DGPLQLVWUDWLRQRIDQHQ]\PDWLFDJHQWWKDWDEODWHGVWURPDO+$IURPDXWRFKWKRQRXVPXULQH
3&QRUPDOL]HGWKH,)3DQGUHH[SDQGHGWKHWXPRUPLFURYDVFXODWXUH
F ,Q FRPELQDWLRQ ZLWK JHPFLWDELQH WKH WUHDWPHQW SHUPDQHQWO\ UHPRGHOHG WKH WXPRU
PLFURHQYLURQPHQW DQG FRQVLVWHQWO\ DFKLHYHG REMHFWLYH WXPRU UHVSRQVHV UHVXOWLQJ LQ D
QHDUGRXEOLQJRIRYHUDOOVXUYLYDORIWUHDWHGPLFH
G 5HGXFWLRQ LQ WKH QXPEHU RI PHWDVWDVHV ZDV DOVR VHHQ LQ PLFH WUHDWHG ZLWK ERWK
JHPFLWDELQHDQG3(*3+FRPSDUHGZLWKWKRVHWUHDWHGZLWKJHPFLWDELQHDORQH

7KHVH ILQGLQJV RI VLJQLILFDQWO\ LPSURYHG VXUYLYDO LQ .UDVPXWDWHG JHQHWLFDOO\ HQJLQHHUHG PLFH
WUHDWHGZLWK3(*3+DQGJHPFLWDELQHZHUHDOVRFRQILUPHGE\WKHLQYHVWLJDWRUVLQ&DPEULGJH
IURP WKH 'U 7XYHVRQ¶V /DE 'HVSLWH VRPH GLIIHUHQFHV LQ WKH H[SHULPHQWDO PHWKRGRORJ\ WKH
ILQGLQJVYDOLGDWHGWKHK\SRWKHVLVDQGFRQFOXVLRQVRIWKHSUHYLRXVVWXG\


([WHQVLYHSUHFOLQLFDOGDWDQRZH[LVWIRUWDUJHWLQJ+$LQSDQFUHDWLFFDQFHUDQGGHPRQVWUDWLQJWKDW
3(*3+ FDQ HIIHFWLYHO\ GHSOHWH VWURPD DQG LQFUHDVH GHOLYHU\ RI DJHQWV LQWR WKH WXPRU FHOOV
'HSOHWLRQ RI WKH VWURPD PD\ DOVR LQIOXHQFH WKH ELRORJ\ RI WKH GLVHDVH E\ UHPRYLQJ FHOOV DQG
JURZWKIDFWRUVUHVSRQVLEOHIRUWKHPDLQWHQDQFHDQGSURJUHVVLRQRI3&
CLOSED EFFEC
Q
CTIVE 07/01/2017
K
QWV
WV
PL]HG
]HG
H RU WR
 RU WR
PHGLDQ26
HGLDQ2
PRQWKV IRU
PRQWKV I
&RPSDUH
&RPSDUH
2/),5,12;WK
),5,12;W
YRPLWLQJ
RPLWLQJ
WRSRLHWLF JURZ
WRSRLHWLF JUR
ZDVQRWDOORZH
VQRWDOORZH
LWVPRGLILHGI
VPRGLILH
6$ LV VWHDGLO\
$ LV VWHDGLO\
HQWV
QWV 

ZLWK DQ H[WHQV
ZLWK DQ H[WHQ
DWLFVWHOODWHFH
DWLFVWH
WUDFHOOXODUPDW
DFHOOXODUPD
HQVKRZQWR
HQVKRZQWR
PD DQG GHYH
PD DQG GHYH
QHWLFDOO\HQJLQ
HWLFDOO\HQJLQ
FDQFHU SURJU
FDQFHU SURJ
GLVWLQJXLVKDEOH
GLVWLQJXLVK
G XVLQJ WKHVH
XVLQJ WKHVH
VXOSKDWHG J
VXOSKDWHG
+LQJRUDQL¶V /
+LQJRUDQL¶V
RUWDQWILQGLQJV
UWDQWILQGLQJV
XUURXQGLQJ WK
XUURXQGLQJ
)3V H[FHHG
)3V H[FHHG
DVFXODUFROODSV
DVFXODUFROOD
RIWKHUDSHXWLF
WKHUDSHXW
ZDV LGHQWLILHG
ZDV LGHQWLILHG
PLQLVWUDWLRQRI
LQLVWUDWL
3&QRUPDOL]HG
3&QRUPDOL]
 ,Q FRPELQD
 ,Q FRPELQD
PLFURHQY
PLFURHQY
QHDUGR
QHDUG
G 5HG
G 5HG
JH
J
7KH
7KH
WUW


6

3DJH

9HUVLRQ'DWH
,QWKHSDVWFKHPRWKHUDS\UHJLPHQVKDYHEHHQWHVWHGHPSLULFDOO\LQDGYDQFHG3&LQWKLVFDVH
+LQJRUDQL HW DO KDV GHPRQVWUDWHG LQFUHDVHG VXUYLYDO LQ D KLJKO\ IDLWKIXO JHQHWLFDOO\ HQJLQHHUHG
PRXVH PRGHO ZKLFK PLPLFV WKH FOLQLFDO V\QGURPH DQG KLVWRSDWKRORJLFDO IHDWXUHV RI DGYDQFHG
KXPDQ3&7KHUHLVDOVRVXEVWDQWLDOSDWLHQWH[SHULHQFHZLWKUHVSHFWWRVDIHW\RI3(*3+7KH
UHFRPPHQGHG3KDVH,,GRVHRI3(*3+KDVEHHQLGHQWLILHGDQGQRDGGLWLYHDGYHUVHHYHQWV
ZLWK FKHPRWKHUDS\ KDYH EHHQ QRWHG WKXV IDU P)2/),5,12; LV QRZ D VWDQGDUG UHJLPHQ IRU
DGYDQFHG3&DQGWKHFRPELQDWLRQZLWK3(*3+FDQEHH[SHFWHGWRVXEVWDQWLDOO\LPSURYHWKH
RYHUDOOVXUYLYDORISDWLHQWVZLWKDGYDQFHGSDQFUHDWLFFDQFHUJLYHQWKHVXSHULRULW\RI)2/),5,12;
WR NLOO FDQFHU FHOOV ZKHQ FRPSDUHG WR JHPFLWDELQH *LYHQ WKH SDWWHUQV RI WR[LFLW\ ZLWK
)2/),5,12;DQGWKHFRPPRQDQGVWDQGDUGSUDFWLFHVLQWKH86$WKHP)2/),5,12;UHJLPHQ
ZLOOEHXVHGE\RPLWWLQJWKHEROXV)8

5HFRPELQDQWSHJ\ODWHGKXPDQK\DOXURQLGDVH3(*3+
5HFRPELQDQW KXPDQ K\DOXURQLGDVH LV FRPPHUFLDOO\ DYDLODEOH DQG ZLGHO\ XVHG WR HQKDQFH
VXEFXWDQHRXV GLVSHUVLRQ DQG DEVRUSWLRQ RI YDULRXV DJHQWV 3HJ\ODWLRQ RI WKLV FRPSRXQG
3(*3+HQKDQFHVLWVFLUFXODWRU\KDOIOLIHDQGSURORQJVV\VWHPLFH[SRVXUHWRWKLVHQ]\PH,Q
SUHFOLQLFDO VWXGLHV 3(*3+ UHPRYHV +$ IURP WXPRUV UHGXFHV WXPRU ,)3 LQKLELWV WXPRU
JURZWK DQG HQKDQFHG HIIHFWV RI FKHPRWKHUDS\ LQ PRXVH PRGHOV RI FDQFHU   $
3KDVH,VWXG\ZLWK3(*3+ZDVFRQGXFWHGLQSDWLHQWVZLWKDGYDQFHGVROLGWXPRUV3(*3+
ZDVDGPLQLVWHUHGDV,9LQIXVLRQRQFHRUWZLFHZHHNO\IRUZHHNVWKHQRQFHZHHNO\7KHGRVH
OHYHOVWHVWHGZHUHDQGXJNJE\PLQLQIXVLRQ$WWKLVWLPHSDWLHQWVKDYHEHHQ
WUHDWHG 3(*3+ ZDV JHQHUDOO\ ZHOO WROHUDWHG DW GRVHV XS WR  XJNJ 7KH GRVH OLPLWLQJ
WR[LFLWLHVZHUHPXVFOHVSDVPVDQGP\DOJLDDWWKHXJNJGRVHOHYHODQGPXVFOHVSDVPVDWWKH
XJNJ GRVH OHYHO 7KH LQFLGHQFH RI P\DOJLDV DQG DUWKUDOJLDV LV UHGXFHG E\ DGPLQLVWUDWLRQ RI
VWHURLGV LH GH[DPHWKDVRQH  PJ ELG RQ 3(*3+ GRVLQJ GD\V 7KH PRVW FRPPRQ $(V
UHODWHGWR3(*3+ZHUHPXVFOHVSDVPDUWKUDOJLDDQGP\DOJLD7KHUHZDV
QRKHPDWRORJLFDOWR[LFLW\UHSRUWHG([WHQVLYH3.3'DVVHVVPHQWKDYHEHHQSHUIRUPHGZLWKVHULDO
WXPRU ELRSVLHV 3(7 DQG '&(05, LPDJLQJ  3UHOLPLQDU\ DQDO\VHV LQGLFDWH WDUJHW LQKLELWLRQ
DEODWLRQ DV UHYHDOHG E\ GRVHGHSHQGHQW LQFUHDVHV LQ FLUFXODWLQJ +$ SODVPD FRQFHQWUDWLRQV
HQKDQFHG WXPRU SHUIXVLRQ'&(05, DQG UHGXFHG WXPRU PHWDEROLF DFWLYLW\ )'*3(7 LQ
WUHDWHGSDWLHQWV

$Q LQWHUQDWLRQDO PXOWLFHQWHU 3KDVH ,%,, VWXG\ LV FXUUHQWO\ XQGHUZD\ ZLWK WKH FRPELQDWLRQ
3(*3+DQGJHPFLWDELQHLQDGYDQFHG3&6XQLO+LQJRUDQL0'*OREDO3,$WWKLVWLPHWKH
UHFRPPHQGHG3KDVH,,GRVHRIWKHFRPELQDWLRQLVJHPFLWDELQHPJPZLWK3(*3+DW
WKH GRVH RI  XJNJ JLYHQ WZLFH D ZHHN IRU WKH ILUVW F\FOH DQG WKHQ ZHHNO\ IRU VXEVHTXHQW
F\FOHVHYHU\ZHHNV

&$
,Q WKH 3KDVH ,,, VWXG\ WKDW HYDOXDWHG QDESDFOLWD[HO DQG JHPFLWDELQH IRU 03& &$ ZDV
PHDVXUHGHYHU\ZHHNV5DSLGGHFUHDVHVLQ&$OHYHOVZHUHREVHUYHGZLWKWKHPHGLDQ
WLPH WR PD[LPXP GHFUHDVH RI  GD\V 7KH PHGLDQ PD[LPXP SHUFHQWDJH FKDQJH LQ &$
OHYHOZDV&$OHYHOGHFUHDVHFRUUHODWHGVWURQJO\ZLWKHIILFDF\SDUDPHWHUV3DWLHQWVZLWK
 RU ODUJHU GHFUHDVH YHUVXV OHVV WKDQ  GHFUHDVH LQ &$ OHYHOV KDG D  YV 
2553 YVPRQWKPHGLDQ3)63 DQGYVPRQWKPHGLDQ26
3 UHVSHFWLYHO\)2/),5,12;LVDKLJKO\DFWLYHUHJLPHQDQGVLPLODUGHFUHDVHVLQ&$
DUHH[SHFWHGDQGZLOOEHIRUPDOO\HYDOXDWHGLQWKLVVWXG\

6WXG\5DWLRQDOH
8QWLOYHU\UHFHQWO\WKHXQLIRUPO\DFFHSWHGVWDQGDUGRIFDUHIRUSDQFUHDWLFGXFWDODGHQRFDUFLQRPD
3'$ZDVVLQJOHDJHQWJHPFLWDELQHZKLFKSURYLGHGPRGHVWREMHFWUHVSRQVHUDWHVDQG
VLPLODUO\ PRGHVW LPSURYHPHQWV LQ ERWK PHGLDQ DQG RQH\HDU VXUYLYDO  5HFHQWO\ WZR
UHJLPHQVKDYHVXJJHVWHGWKDWGLIIHUHQWRXWFRPHVPD\EHSRVVLEOH,QD3KDVH,,VWXG\SDWLHQWV
ZLWK 6WDJH ,9 GLVHDVH UHFHLYHG D FRPELQDWLRQ RI ZLWK JHPFLWDELQH SOXV QDESDFOLWD[HO DQ
DOEXPLQFRDWHG QDQRSDUWLFOH UHVXOWLQJ LQ D PHGLDQ VXUYLYDO RI  PRQWKV FRPSDUHG WR 
PRQWKV ZLWK JHPFLWDELQH PRQRWKHUDS\   0RUH UHFHQWO\ D 3KDVH ,,, WULDO RI WKH PXOWLGUXJ
UHJLPHQ)2/),5,12;FRQIHUUHGDPHGLDQVXUYLYDORIPRQWKVFRPSDUHGZLWKPRQWKV
CLOSED EFFECTIVE 07/01/2017

IRU
RU
YHWKH
WK
),5,12;
,5,12;
[LFLW\ ZLWK
FLW\ Z
12;UHJLPHQ
12;UHJLPH
GHO\ XVHG WR
HO\ XVHG WR
DWLRQ RI WKLV
WLRQ RI WKLV
H[SRVXUHWRWK
SRVXUHWR
HV WXPRU ,)3
HV WXPRU ,)3
HOV RI FDQFHU
OV RI FDQF
DGYDQFHGVR
DGYDQFHGVR
ZHHNVWKHQ
HHNVWKHQ
VLRQ$WWKLVWL
VLRQ$WWKLVW
GRVHV XS WR 
GRVHV X
XJNJGRVHOHY
JNJGRVHOH
QG DUWKUDOJLDV
QG DUWKUDOJLDV
(*3+ GRV
(*3+ GRV
DUWKUDOJLD
DUWKUDOJLD
YH3.3'DVV
YH3.3'DV
PDJLQJ  3UH
PDJLQJ  3
HQGHQW LQFUHD
QGHQW LQFUHD
05, DQG UH
05, DQG
HU 3KDVH ,%
HU 3KDVH ,%
ELQHLQDGYDQF
LQHLQDGYDQF
,,GRVHRIWKH
,GRVHRIW
NJ JLYHQ
NJ JLYHQ WZLF
HHNV
HHNV
DVH ,,, VWXG\
DVH ,,, V
HGHYHU\ZH
HGHYHU\Z
WR PD[LPXP
WR PD[LPXP
HOZDV&
ZDV&
 RU ODUJHU
 RU ODUJH
2553 
2553 
3 
3 
DUHH[
UH
6


6

3DJH

9HUVLRQ'DWH
IRU VLQJOH DJHQW JHPFLWDELQH S   ,QWHUHVWLQJO\ WKHVH WZR UHJLPHQV VKDUH RQH
QRWDEOH IHDWXUH VXVWDLQHG H[SRVXUH RI WKH WXPRU WR FLUFXODWLQJ GUXJ FRQFHQWUDWLRQV ZKLFK FDQ
KHOS RYHUFRPH WKH SURQRXQFHG LQWHUVWLWLDO IOXLG SUHVVXUHV WKDW RSSRVH GUXJ SHQHWUDWLRQ VHH
EHORZ  %HORZ LV D SURSRVHG VWUDWHJ\ WR RYHUFRPH WKHVH EDUULHUV DQG H[WHQG WKH HIILFDF\
REVHUYHGZLWK)2/),5,12;

$QHPHUJLQJFRQFHSWLQSDQFUHDVFDQFHUSDWKRSK\VLRORJ\LVWKHH[WHQWWRZKLFKWKHDVVRFLDWHG
UREXVWGHVPRSODVWLFUHDFWLRQHUHFWVSK\VLFDOEDUULHUVWRV\VWHPLFWKHUDSLHV7KHVHEDUULHUVOLPLW
WKHDELOLW\WRDFKLHYHWKHUDSHXWLFGUXJFRQFHQWUDWLRQVDQGVHUYHDVSULPDU\DQGXQGHUDSSUHFLDWHG
PHFKDQLVPVRIGUXJUHVLVWDQFH'HWDLOHGDQDO\VHVRIWKHWXPRUPLFURHQYLURQPHQWLQ3'$DUH
UHYHDOLQJDQXQXVXDOO\FRPSOH[FHOOXODUDQGH[WUDFHOOXODUPDWUL[FRPSRVLWLRQWKDWLQFOXGHVVWURPDO
ILEUREODVWV YDULRXV FODVVHV RI LPPXQRVXSSUHVVLYH FHOOV DQG D GHQVH QHWZRUN RI
JO\FRVDPLQRJO\FDQV *$* SURWHRJO\FDQV DQG SURWHLQV WKDW FROOHFWLYHO\ FRQVSLUH WR FUHDWH D
GUXJIUHHDQGLPPXQHSULYLOHJHGVDQFWXDU\IRUWKHGLVHDVH2QHHVSHFLDOO\DEXQGDQW*$*
K\DOXURQDQRUK\DOXURQLFDFLG+$LVWKHSULPDU\GHWHUPLQDQWRILQRUGLQDWHO\KLJKLQWHUVWLWLDOIOXLG
SUHVVXUH ,)3 WKDW ULYDO PHDQ DUWHULDO SUHVVXUH DQG FDXVH ZLGHVSUHDG YDVFXODU FROODSVH 
+$ LV D ODUJH OLQHDU SRO\PHU FRPSRVHG RI DOWHUQDWLQJ XQLWV RI 1DFHW\O JOXFRVDPLQH DQG
JOXFXURQLF DFLG XQLWV ZLWK YLVFRHODVWLF SURSHUWLHV WKDW FRQWULEXWH WR WKH DUFKLWHFWXUH DQG
PDOOHDELOLW\ RI WLVVXHV SDUWLFXODUO\ GXULQJ G\QDPLF SURFHVV VXFK DV HPEU\RJHQHVLV DQG
RQFRJHQHVLV7KHYLVFRHODVWLFSURSHUWLHVRI+$XQGHUOLHLWVUROHLQFOLQLFDODQGFRVPHWLF
DSSOLFDWLRQV  ,Q 3'$ +$ IXQFWLRQV DV D K\GURJHO WUDSSLQJ DQG UHWDLQLQJ ZDWHU ZKLFK ERWK
VHUYHVWRHOHYDWH,)3DQGIXUWKHUUHWDUGVGUXJSHUIXVLRQE\LQKLELWLQJFRQYHFWLRQ'U
+LQJRUDQL¶VODEKDVUHFHQWO\GHILQHGDVWUDWHJ\LQWKH0XULQH&OLQLFDO7ULDOV3URJUDP0&73WR
RYHUFRPHWKHVHSURKLELWLYH,)3VLQ3'$DQGUHVWRUHERWKGLIIXVLYHDQGFRQYHFWLYHFRPSRQHQWVRI
GUXJ GHOLYHU\   6\VWHPLF DGPLQLVWUDWLRQ RI D FKHPLFDOO\ PRGLILHG IRUP RI UHFRPELQDQW
K\DOXURQLGDVH 3(*3+ QRUPDOL]HV ,)3 DQG PRELOL]HV LQWUDWXPRUDO IOXLG SHUPLWWLQJ
FKHPRWKHUDSLHVWRIUHHO\SHQHWUDWHWKHWXPRUEHG3KDVH,VWXGLHVZLWKVLQJOHDJHQW3(*3+
KDYH DOUHDG\ HVWDEOLVKHG WKDW LW LV ZHOOWROHUDWHG DQG DSSHDUV WR KDYH VLPLODU HIIHFWV RQ WLVVXH
SHUIXVLRQDVREVHUYHGLQWKHJHQHWLFDOO\HQJLQHHUHGPRXVHPRGHOVWXGLHV$3KDVH,%,,WULDO
LVFXUUHQWO\XQGHUZD\IRUZKLFK'U+LQJRUDQLVHUYHVDVWKH*OREDO3,

7KH3KDVH,,GRVHRI3(*3+XJNJJLYHQWZLFHDZHHNGXULQJGRVLQJZHHNV[ZHHNV
DQGWKHQRQFHDZHHNGXULQJGRVLQJZHHNVKDVEHHQLGHQWLILHGDQGQRDGGLWLYHDGYHUVHHYHQWV
ZLWK FKHPRWKHUDS\ KDYH EHHQ QRWHG WKXV IDU P)2/),5,12; PRGLILHG RU GRVHUHGXFHG
)2/),5,12;LVQRZDVWDQGDUGUHJLPHQIRUDGYDQFHG3'$DQGWKLVVWXG\K\SRWKHVL]HVWKDWWKH
FRPELQDWLRQZLWK3(*3+ZLOOVXEVWDQWLDOO\LPSURYHRYHUDOOVXUYLYDO3(*3+LQWKLVVWXG\ZLOO
IROORZWKHVDPHVFKHGXOHDVHYDOXDWHGLQWKH3KDVH,VWXG\WZLFHDZHHN[ZHHNVDQGWKHQ
RQFH D ZHHN  7KLV VFKHGXOH LV DOVR VLPLODU WR RQJRLQJ VSRQVRU VWXGLHV RI 3(*3+ LQ
FRPELQDWLRQ ZLWKJHPFLWDELQH DQGQDESDFOLWD[HO 'XULQJWKHFRXUVHRIWHVWLQJWKLVK\SRWKHVLV
FRUUHODWLYHVWXGLHVZLOOEHSHUIRUPHGWRGHWHUPLQHLILQWUDWXPRUDO+$FRQWHQWFDQVHUYHDVD
XVHIXOSURJQRVWLFPDUNHUDQGZKHWKHUFLUFXODWLQJOHYHOVRI+$PHWDEROLWHVGXULQJWKHFRXUVHRI
WUHDWPHQWFDQVHUYHWRGHPRQVWUDWHWDUJHWGHJUDGDWLRQDQGZKHWKHUWKLVFDQDOVRSUHGLFWVXUYLYDO
EHQHILW

7KURPERHPEROLF(YHQWVLQ&DQFHU

3DWLHQWV ZLWK SDQFUHDWLF FDQFHU DUH DW KLJK ULVN RI GHYHORSLQJ YHQRXV WKURPERHPEROLF HYHQWV
97( FRPSDUHG WR RWKHU FDQFHUV  7KH LQFLGHQFH UDWH LV EHWZHHQ  LQ UHWURVSHFWLYH
VWXGLHVDQGEHWZHHQLQDXWRSV\FDVHVVHULHV,QDPHWDDQDO\VLVRISDSHUVLQ
FDQFHU SDWLHQWV SDQFUHDV FDQFHU KDG DSSUR[LPDWHO\  97( LQ  SHUVRQ\HDUV DV
FRPSDUHG WR EUDLQ  3< OXQJ  3< DQG KHPDWRORJLF FDQFHU  3<
+RUVWHG  7KH KLJK LQFLGHQFH RI 97( LV WKRXJK VHFRQGDU\ WR DOWHUQDWLRQV LQ FRDJXODWLRQ
LQFOXGHGILEULQSODVPLQRJHQDQGWKURPELQ3DWLHQWFKDUDFWHULVWLFVWKDWLQFUHDVHULVNRI97(VDUH
KRVSLWDOL]DWLRQVHGHQWDU\ VWDWXV VXUJHU\ YHQRXV DFFHVVFDWKHWHUL]DWLRQ ZHLJKW H[WUHPHV
DQHPLDPHGLFDWLRQVHU\WKURSRLHWLQVWLPXODWLQJDJHQWVFKHPRWKHUDS\DQGPHJHVWURODQGRWKHU
FRPRUELGLWLHVHJKHDUWOLYHUDQGNLGQH\GLVHDVHGLDEHWHV

CLOSED EFFECTIVE 07/01/2017
WHG
HG
VOLPLW
OLP
UHFLDWHG
UHFLDWHG
Q3'$DUH
3'$D
XGHVVWURPDO
XGHVVWURP
H QHWZRUN
H QHWZRUN
QVSLUH WR FUHD
LUH WR FUHD
LDOO\DEXQGDQW
OO\DEXQGDQ
HO\KLJKLQWHUV
HO\KLJKLQWHU
G YDVFXODU FR
YDVFXODU FR
1DFHW\O JOXF
DFHW\O J
XWH WR WKH D
XWH WR WKH D
VXFK DV HP
VXFK DV
HUOLHLWVUROHLQ
UOLHLWVUROHLQ
SLQJ DQG UHWDL
 DQG UHWD
E\LQKLELWLQJ
E\LQKLELWLQJ
0XULQH&OLQLF
0XULQH
ERWKGLIIXVLYH
ERWKGLIIXVLY
I D FKHPLFDOO
I D FKHPLFDO
DQG PRELO
DQG PRELO
RUEHG3KDVH
UEHG3KDV
ROHUDWHG DQG D
OHUDWHG DQG
HQJLQHHUHGP
HQJLQHHUH
QJRUDQLVHUYH
JRUDQLVHUYH
XJNJJL
XJNJJL
GRVLQJZHHN
GRVLQJZHH
EHHQ QRWHG
EHHQ QRWHG
VWDQGDUGUHJLP
WDQGDUGUHJLP
3+ZLOOVXE
3+ZLOOVX
KHGXOHDVHYD
KHGXOHDVHYD
7KLV VFKHGX
7KLV VFKHG
WKJHPFLWDELQ
JHPFLWDEL
WXGLHVZLOOEH
WXGLHVZLOOEH
JQRVWLFPDUNH
JQRVWLFPDUNH
QWFDQVHUYHW
QWFDQVHUYH
ILWLW
7KURPERHPE
7KURPERHPE
3DWLHQWV
3DWLHQWV
97(
97
VWXG
VWX
F


6

3DJH

9HUVLRQ'DWH
$ 3KDVH ,, VWXG\ VSRQVRUHG E\ +DOR]\PH ,QF +$/2 $ 3KDVH  5DQGRPL]HG
0XOWLFHQWHU6WXG\RI3(*3+3(*\ODWHG5HFRPELQDQW+XPDQ+\DOXURQLGDVH&RPELQHGZLWK
QDE3DFOLWD[HO 3OXV *HPFLWDELQH &RPSDUHG :LWK QDE3DFOLWD[HO 3OXV *HPFLWDELQH LQ 6XEMHFWV
:LWK6WDJH,93UHYLRXVO\8QWUHDWHG3DQFUHDWLF&DQFHUZDVSODFHGRQFOLQLFDOKROGE\WKH)'$
GXHWRLPEDODQFHRIWKURPERHPEROLF7(HYHQWVLQVXEMHFWVUHFHLYLQJ3(*3+$VRI
VXEMHFWVZHUHUDQGRPL]HGWRWKHVWXG\$VDUHVXOWRIGLVFXVVLRQVKHOGE\+DOR]\PHZLWKWKH
)'$ULVNPLWLJDWLRQVWUDWHJLHVKDYHEHHQLPSOHPHQWHGDQGDSSURYHGE\WKH)'$RQ$VRI
WLPH RI VWXG\ KROG 6 KDG DFFUXHG  SDWLHQWV ERWK KDG UHFHLYHG 3(*3+ ZLWK
)2/),5,12; 1R 7( HYHQWV ZHUH UHSRUWHG LQ 6 $V D VDIHW\ SUHFDXWLRQ 6 KDV
LQVWLWXWHGDGGLWLRQDOH[FOXVLRQFULWHULDDVSHU5HYLVLRQ
$QRQJRLQJDQDO\VLVRISDWLHQWVWUHDWHGLQWKHUDQGRPL]HG3KDVH,,SDUWRIWKLVWULDOVKRZHGWKDW
SDWLHQWVWUHDWHGZLWK)2/),5,12;DQG3(*3+KDGDQLPEDODQFHRI7(HYHQWVSULPDULO\97(
HYHQWV'XHWRWKLVHOHYDWHGULVNSDWLHQWVRQWKHLQYHVWLJDWLRQDODUPZLOOEHUHTXLUHGWRVWDUWORZ
PROHFXODUZHLJKWKHSDULQSURSK\OD[LVSULRUWREHJLQQLQJVWXG\WUHDWPHQWDVSHU5HYLVLRQ

6:2*¶V3KDVH,([SHULHQFH

$WGRVHOHYHO3(*3+GRVHRIPFJNJRQ'D\DQG'D\RUWKHUHZHUHSDWLHQWV
HQWHUHGZLWK'/7VFRQVLVWLQJP\DOJLDVLQRQHSDWLHQWDQGIDWLJXHPXFRVLWLVLQWKHRWKHUSDWLHQW
'XHWRWKHRFFXUUHQFHRIGRVHOLPLWLQJWR[LFLWLHV'/7IXUWKHUDFFUXDOWRWKLVGRVHOHYHOZDV
KDOWHGDQGDFFUXDOWRWKHQH[WORZHUOHYHORFFXUUHG$WRWDORISDWLHQWVZHUHDFFUXHGWRGRVH
OHYHO3(*3+GRVHRIPFJNJRQ'D\RQO\2QHSDWLHQWZDVQRWFRQVLGHUHGHYDOXDEOH
DQGLQWKHSDWLHQWVHYDOXDEOHIRUWR[LFLW\GHWHUPLQDWLRQWKHUHZDVRQH'/7RIIDWLJXH$67$/7
HOHYDWLRQGHK\GUDWLRQDQGVHSVLV'RVHOHYHOZDVFRQVLGHUHGVXLWDEOHIRUIXUWKHUH[SDQVLRQ
7KH3KDVH,,GRVHZDVHVWDEOLVKHGDVP)2/),5,12;3(*3+PFJNJRQ'D\

,QFOXVLRQRI:RPHQDQG0LQRULWLHV

7KLV VWXG\ ZDV GHVLJQHG WR LQFOXGH ZRPHQ DQG PLQRULWLHV EXW ZDV QRW GHVLJQHG WR PHDVXUH
GLIIHUHQFHV RI LQWHUYHQWLRQ HIIHFWV  7KH DQWLFLSDWHG DFFUXDO LQ WKH HWKQLFLW\UDFH DQG VH[
FDWHJRULHVLVVKRZQLQWKHWDEOHEHORZ

(WKQLF&DWHJRU\
)HPDOHV
0DOHV
7RWDO
+LVSDQLFRU/DWLQR



1RW+LVSDQLFRU/DWLQR



7RWDO(WKQLF



5DFLDO&DWHJRU\
$PHULFDQ,QGLDQRU$ODVNDQ1DWLYH



$VLDQ



%ODFNRU$IULFDQ$PHULFDQ



1DWLYH+DZDLLDQRURWKHU3DFLILF,VODQGHU



:KLWH



5DFLDO&DWHJRU\7RWDORIDOO6XEMHFWV



CLOSED 
5DFLDO&D
DFLD
D EFFECTIVE 07/01/2017
H
VRI
RI
ZLWK
ZLW
 KDV
KDV
01
LDOVKRZHGWK
LDOVKRZHGWK
QWVSULPDULO\
SULPDULO\
UHTXLUHGWRVW
HTXLUHGWRVW
SHU5HYLVLRQ
SHU5HYLVLRQ
D\RUWKH
RUW
WLJXHPXFRVLW
LJXHPXFRVLW
IXUWKHUDFFUXD
KHUDFFUXD
RWDORISDWLH
RWDORISDWL
2QHSDWLHQWZ
2QHSD
DWLRQWKHUHZD
WLRQWKHUHZ
ZDVFRQVLGHU
ZDVFRQVLGHU
5,12;3(*
5,12;3(*
ZRPHQ DQG
ZRPHQ DQG
V  7KH DQWL
V  7KH DQ
EHORZ
EHORZ
HJRU\
HJRU\
FE
R
FF
RU/DWLQR
/DWLQR
EF
LF
E
D E
HULFDQ,QGLDQR
ULFDQ,QGLDQ
ED
$VLDQ
LDQ
ED
%ODFNRU$I
%ODFNRU$I
SE
S
1DWLYH+
1DWLYH
OS
OS
OS
:KLW
:KL
OS
OS
OS
5
O


6

3DJH

9HUVLRQ'DWH


'58*,1)250$7,21

,QYHVWLJDWRU¶V%URFKXUHV
)RULQIRUPDWLRQUHJDUGLQJ,QYHVWLJDWRU¶V%URFKXUHVSOHDVHUHIHUWR6:2*3ROLF\

)RU WKLV VWXG\ ILOJUDVWLP IOXRURXUDFLO LULQRWHFDQ OHXFRYRULQ R[DOLSODWLQ DQG SHJILOJUDVWLP DUH
FRPPHUFLDOO\DYDLODEOHWKHUHIRUH,QYHVWLJDWRU%URFKXUHVDUHQRWDSSOLFDEOHWRWKLVWKHVHGUXJV
,QIRUPDWLRQ DERXW FRPPHUFLDO GUXJV LV SXEOLFO\ DYDLODEOH LQ WKH 3K\VLFLDQ¶V 'HVN 5HIHUHQFH
3'5SUHVFULELQJLQIRUPDWLRQDQGRWKHUUHVRXUFHV

)RUWKLVVWXG\3(*3+LVLQYHVWLJDWLRQDODQGLVEHLQJSURYLGHGXQGHUDQ,1'KHOGE\6:2*
)RU,1'VILOHGE\6:2*WKHSURWRFROVHUYHVDVWKH,QYHVWLJDWRU%URFKXUHIRUWKHSHUIRUPDQFHRI
WKHSURWRFRO,QVXFKLQVWDQFHVVXEPLVVLRQRIWKHSURWRFROWRWKH,5%VKRXOGVXIILFHIRUSURYLGLQJ
WKH,5%ZLWKLQIRUPDWLRQDERXWWKHGUXJ+RZHYHULQFDVHVZKHUHWKH,5%LQVLVWVRQKDYLQJWKH
RIILFLDO ,QYHVWLJDWRU %URFKXUH IURP WKH FRPSDQ\ IXUWKHU LQIRUPDWLRQ PD\ EH UHTXHVWHG E\
FRQWDFWLQJWKH6:2*2SHUDWLRQV2IILFHDW


(QR[DSDULQ/RYHQR[16&

D
3+$50$&2/2*<

0HFKDQLVPRI$FWLRQ(QR[DSDULQH[HUWVLWVDQWLWKURPERWLFDFWLYLW\E\ELQGLQJWR
DQGDFFHOHUDWLQJWKHDFWLYLW\RIDQWLWKURPELQ,,,$7,,,%\DFWLYDWLQJDQWLWKURPELQ
FRDJXODWLRQIDFWRU;DDQGIDFWRU,,DWKURPELQDUHLQKLELWHG8OWLPDWHO\WKURPELQ
LQKLELWLRQSUHYHQWVWKHIRUPDWLRQRIILEULQFORWV
E
3+$50$&2.,1(7,&6


$EVRUSWLRQVXEFXWDQHRXV DGPLQLVWUDWLRQKDVD ELRDYDLODELOLW\ RI ZLWKWKH
DJHQWUHDFKLQJD7PD[LQKRXUV

'LVWULEXWLRQHQR[DSDULQKDVDYROXPHRIGLVWULEXWLRQRI/7KHDJHQWKDVDORZ
ELQGLQJDIILQLW\WRHQGRWKHOLDOFHOOVDQGGRHVQRWFURVVWKHSODFHQWDWRDQ\JUHDW
H[WHQW
0HWDEROLVPKHSDWLFPHWDEROLVPLQYROYHVGHVXOIDQDWLRQDQGGHSRO\PHUL]DWLRQ

(OLPLQDWLRQ   UHQDO WKURXJK GRVH LQGHSHQGHQW PHFKDQLVPV 7RWDO ERG\
FOHDUDQFHRIGUXJLV/ZLWKDQHOLPLQDWLRQKDOIOLIHRIKRXUV


F
$'9(56(())(&76



3RVVLEOH6LGH(IIHFWVRIHQR[DSDULQ



$GYHUVHHIIHFWVUHSRUWHGLQ!RIVXEMHFWVWUHDWHGZLWKHQR[DSDULQ
QRQH
$GYHUVH HIIHFWV UHSRUWHG LQ  RI VXEMHFWV LQFOXGH DQHPLD
KHPDWRPDKHPRUUKDJH/)7HOHYDWLRQIHYHU
$GYHUVHHIIHFWVUHSRUWHGLQRIVXEMHFWVLQFOXGH'LDUUKHDQDXVHD
WKURPERF\WRSHQLD
DWULDO
ILEULOODWLRQ
KHDUW
IDLOXUH
LQWUDFUDQLDO
KHPRUUKDJHSQHXPRQLD


3UHJQDQF\ DQG /DFWDWLRQ  (QR[DSDULQ LV FODVVLILHG DV )'$ SUHJQDQF\
ULVN FDWHJRU\ % 7HUDWRJHQLF HIIHFWV KDYH QRW EHHQ GHPRQVWUDWHG LQ
DQLPDOV 1R ZHOO FRQWUROOHG VWXGLHV H[LVW LQ SUHJQDQW ZRPHQ 6HYHUDO
CLOSED EFFECTIVE 07/01/2017
VWLP DUH
DUH
VHGUXJV
HGUXJV
VN 5HIHUHQFH
N 5HIHUHQF
,1' KHOGE\6
OGE\6
IRUWKHSHUIRU
IRUWKHSHUIR
KRXOGVXIILFHI
RXOGVXIILFH
KH,5%LQVLVWV
,5%LQVLV
PDWLRQ
DWLR
PD\ E
PD\ E
QH[HUWVLWVDQ
QH[HUWVLWVDQ
DQWLWKURPELQ,
DQWLWKURPELQ,
FWRU,,DWKURP
FWRU,,DWKURP
PDWLRQRIILEULQ
PDWLRQRIILEU
&6
FXWDQHRXV DG
FXWDQHRXV DG
JD7PD[LQ
JD7PD[LQ
RQ
RQHQ
HQR[DSDUL
R[DSDU
F
JDIILQLW\WRHQ
JDIILQLW\WR
QW
QW
0HWDEROLVP
HWDEROLVP
E
(OLPLQD
(OL
FOHDU
OH
FF


6

3DJH

9HUVLRQ'DWH
UHSRUWVKDYHGHVFULEHGWKHXVHRIHQR[DSDULQGXULQJSUHJQDQF\ZLWKRXW
IHWDO RU PDWHUQDO FRPSOLFDWLRQV 7KHUH KDYH EHHQ UHSRUWV RI FRQJHQLWDO
DQRPDOLHV LQFOXGLQJ FHUHEUDO DQRPDOLHV OLPE DQRPDOLHV K\SRVSDGLDV
SHULSKHUDOYDVFXODUPDOIRUPDWLRQILEURWLFG\VSODVLDDQGFDUGLDFGHIHFW
ZKHQZRPHQUHFHLYHGHQR[DSDULQGXULQJSUHJQDQF\$FDXVHDQGHIIHFW
UHODWLRQVKLSKDVQRWEHHQHVWDEOLVKHGQRUKDVWKHLQFLGHQFHEHHQVKRZQ
WREHKLJKHUWKDQLQWKHJHQHUDOSRSXODWLRQ7KHUHKDYH EHHQ
SRVW
PDUNHWLQJ UHSRUWV RI IHWDO GHDWK ZKHQ SUHJQDQW ZRPHQ UHFHLYHG
HQR[DSDULQ &DXVDOLW\ IRU WKHVH FDVHV KDV QRW EHHQ GHWHUPLQHG
3UHJQDQW ZRPHQUHFHLYLQJDQWLFRDJXODQWVLQFOXGLQJHQR[DSDULQDUHDW
LQFUHDVHGULVNIRUEOHHGLQJ$FFRUGLQJWRWKHPDQXIDFWXUHULWLVXQNQRZQ
LIHQR[DSDULQLVH[FUHWHGLQWREUHDVWPLON7KHPDQXIDFWXUHUUHFRPPHQGV
FDXWLRQ ZKHQ XVLQJ HQR[DSDULQ LQ ZRPHQ ZKR DUH EUHDVWIHHGLQJ
+RZHYHUEHFDXVHRIWKHUHODWLYHO\KLJKPROHFXODUZHLJKWRIHQR[DSDULQ
H[FUHWLRQLVH[SHFWHGWREHPLQLPDO$OVREHFDXVHRILQDFWLYDWLRQE\WKH
*,WUDFWRQRUDOLQJHVWLRQDQ\SRWHQWLDOULVNWRDQXUVLQJLQIDQWSRVHGE\
HQR[DSDULQVKRXOGEHQHJOLJLEOH



'UXJ,QWHUDFWLRQV

$VHQR[DSDULQHOLPLQDWLRQLVSULPDULO\UHQDOPLQLPDO&<3LQWHUDFWLRQVDUH
IRXQG $JHQWV WKDW LQFUHDVH WKH ULVN RI KHPRUUKDJH VKRXOG EH
GLVFRQWLQXHG SULRU WR LQLWLDWLRQ RI HQR[DSDULQ 'XH WR SRWHQWLDO GUXJ
LQWHUDFWLRQV D FRPSOHWH SDWLHQW PHGLFDWLRQ OLVW LQFOXGLQJ HQR[DSDULQ
VKRXOG EH VFUHHQHG SULRU WR LQLWLDWLRQ RI DQG GXULQJ WUHDWPHQW ZLWK
HQR[DSDULQ 6HH 6HFWLRQ  7R[LFLWLHV WR EH 0RQLWRUHG DQG 'RVDJH
0RGLILFDWLRQV
G
'26,1*	$'0,1,675$7,21

6HH6HFWLRQ7UHDWPHQW3ODQ
H
+2:6833/,('


(QR[DSDULQ LV FRPPHUFLDOO\ DYDLODEOH DQG ZLOO QRW EH VXSSOLHG 5HIHU WR WKH
FXUUHQW)'$DSSURYHG SDFNDJHLQVHUWIRUWKHPRVWFRPSUHKHQVLYH)LOJUDVWLPU
PHW+X*&6)1HXSRJHQ16&


)LOJUDVWLPUPHW+X*&6)1HXSRJHQ16&
D
3+$50$&2/2*<

0HFKDQLVP RI $FWLRQ )LOJUDVWLP VWLPXODWHV WKH SURGXFWLRQ PDWXUDWLRQ DQG
DFWLYDWLRQ RI QHXWURSKLOV ILOJUDVWLP DFWLYDWHV QHXWURSKLOV WR LQFUHDVH ERWK WKHLU
PLJUDWLRQDQGF\WRWR[LFLW\
E
3+$50$&2.,1(7,&6


$EVRUSWLRQ)LUVWRUGHUSKDUPDFRNLQHWLFPRGHOLQJ ZLWKPD[LPXPVHUXP
FRQFHQWUDWLRQUHDFKHGZLWKLQWRKRXUVDIWHUVXEFXWDQHRXVLQMHFWLRQ

'LVWULEXWLRQ$YHUDJH9GP/NJ

0HWDEROLVP8QNQRZQ

(OLPLQDWLRQ5HQDODQGQHXWURSKLOUHFHSWRUPHGLDWHGHOLPLQDWLRQKDOIOLIH
LVDSSUR[LPDWHO\KRXUV
CLOSED EFFECTIVE 07/01/2017
Q
RVW
FHLYHG
YHG
HUPLQHG
HUPLQHG
DULQDUHDW
QDUH
LWLVXQNQRZQ
WLVXQNQRZ
HUUHFRPPHQG
HUUHFRPPHQG
UH EUHDVW
EUHDVWIHHG
IHH
ZHLJKWRIHQR[
LJKWRIHQR[
VHRILQDFWLYDWL
HRILQDFWLYD
DQXUVLQJLQID
QXUVLQJLQID
LO\UHQDOPLQLP
UHQDOPLQLP
WKH ULVN RI
WKH ULVN RI
Q RI HQR[DS
Q RI H
DWLHQW PHGLFD
WLHQW PHGLF
RU WR LQLWLDWLR
RU WR LQLWLDWLR
RQ 
RQ  7R[LF
7R[LF
IV
$7,21
$7,21
HDWPHQW3ODQ
HDWPHQW3OD
('
('
DULQ LV FRPPH
ULQ LV FRPPH
W)'$
W)'$DSSURY
DSSUR
+X*
+X*&6)1
&6)1
WLPUUPHW+X*
PHW+X
3+$50
3+
0H
0H
D
E


6

3DJH

9HUVLRQ'DWH
F
$'9(56(())(&76


3RVVLEOH 6LGH(IIHFWVRI)LOJUDVWLP5HIHUWRWKHFXUUHQW)'$DSSURYHG
SDFNDJHLQVHUWIRUWKHPRVWFRPSUHKHQVLYHDQGXSWRGDWH LQIRUPDWLRQ
RQDGYHUVHUHDFWLRQV
0RVWIUHTXHQWDGYHUVHUHDFWLRQVUHSRUWHGDUHVNHOHWDOSDLQ!


3UHJQDQF\DQG/DFWDWLRQ&DWHJRU\&ILOJUDVWLPVKRXOGEHXVHGGXULQJ
SUHJQDQF\ RQO\ LI WKH SRWHQWLDO EHQHILW MXVWLILHV WKH SRWHQWLDO ULVN WR WKH
IHWXV$QLPDOVWXGLHVKDYHGHPRQVWUDWHGDGYHUVHHIIHFWVDQGIHWDOORVV
)LOJUDVWLPKDVEHHQVKRZQWRFURVVWKHSODFHQWDLQKXPDQV7KHUHDUH
QRDGHTXDWHDQGZHOOFRQWUROOHGVWXGLHVLQSUHJQDQWZRPHQ([FUHWLRQLQ
EUHDVWPLONXQNQRZQXVHFDXWLRQ

'UXJ,QWHUDFWLRQV'UXJLQWHUDFWLRQVEHWZHHQILOJUDVWLPDQGRWKHUGUXJV
KDYHQRWEHHQIXOO\HYDOXDWHG'UXJVZKLFKPD\SRWHQWLDWHWKHUHOHDVH
RIQHXWURSKLOVÃVXFKDVOLWKLXPÃVKRXOGEHXVHGZLWKFDXWLRQ
,QFUHDVHGKHPDWRSRLHWLFDFWLYLW\RIWKHERQHPDUURZLQUHVSRQVHWR
JURZWKIDFWRUWKHUDS\KDVEHHQDVVRFLDWHGZLWKWUDQVLHQWSRVLWLYHERQH
LPDJLQJFKDQJHV7KLVVKRXOGEHFRQVLGHUHGZKHQLQWHUSUHWLQJERQH
LPDJLQJUHVXOWV
)LOJUDVWLPVKRXOGQRWEHDGPLQLVWHUHGRQWKHVDPHGD\ZLWKDQWLFDQFHU
FKHPRWKHUDSHXWLFDJHQWVZLWKOHXNRF\WHVXSSUHVVLYHSURSHUWLHV

)LOJUDVWLPLVFRQWUDLQGLFDWHGLQSDWLHQWVZLWKK\SHUVHQVLWLYLW\WR(FROL
GHULYHGSURWHLQVILOJUDVWLPRUDQ\FRPSRQHQWRIWKHSURGXFW

G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ

5HIHU
WR
WKH
FXUUHQW
)'$DSSURYHG
SDFNDJH
LQVHUW
IRU
GUXJ
DGPLQLVWUDWLRQ

H
35(3$5$7,216725$*(	67$%,/,7<

5HIHU WR WKH FXUUHQW )'$DSSURYHG SDFNDJH LQVHUW IRU VWRUDJH VWDELOLW\ DQG
VSHFLDOKDQGOLQJLQIRUPDWLRQ

I
+2:6833/,('

)LOJUDVWLPLVFRPPHUFLDOO\DYDLODEOHDQGZLOOQRWEHVXSSOLHG5HIHUWRWKHFXUUHQW
)'$DSSURYHGSDFNDJHLQVHUW


)OXRURXUDFLO)8$GUXFLO16&

D
3+$50$&2/2*<

0HFKDQLVP RI $FWLRQ )OXRURXUDFLO LV D S\ULPLGLQH DQDORJ DQWLPHWDEROLWH WKDW
LQWHUIHUHVZLWK'1$DQG51$V\QWKHVLV$IWHUDFWLYDWLRQWKHDFWLYHPHWDEROLWH)
803LVLQFRUSRUDWHGLQWR51$WRUHSODFHXUDFLODQGLQKLELWFHOOJURZWK7KHDFWLYH
PHWDEROLWH )G803 LQKLELWV WK\PLG\ODWH V\QWKHWDVH DQG GHSOHWHV WK\PLGLQH
WULSKRVSKDWH
CLOSED EFFECTIVE 07/01/2017
VHGGXULQJ
HGGXUL
DO ULVN WR WKH
DO ULVN WR WK
DQGIHWDOORV
DQGIHWDOORV
XPDQV7KHUH
DQV7KHU
ZRPHQ([FUH
RPHQ([FUH
QILOJUDVWLPDQ
ILOJUDVWLP
FKPD\SRWHQ
FKPD\SRWHQ
HXVHGZLWKFD
XVHGZLWKF
WKHERQHPDUU
ERQHPDU
DVVRFLDWHGZL
DVVRFLDWHGZ
EHFRQVLGHUHG
EHFRQV
HDGPLQLVWHUHG
HDGPLQLVWHUH
JHQWVZLWKOH
JHQWVZLWKOH
QWUDLQGLFDWHGL
QWUDLQGLFDWH
HLQVILOJUDVWLP
QVILOJUDVWLP
,1,675$7,21
,1,675$7,21
VLQJ
VLQJ ± 6HH
6HH6H
6H
E
5HIHU
WR
5HIHU
WR
DGPLQLVWU
DGPLQLVWU
35(3$5$7
5(3$5$7
5HIHU W
5H
VSHF
SH
II




6

3DJH

9HUVLRQ'DWH
E
3+$50$&2.,1(7,&6

$EVRUSWLRQ 5DSLG LQWUDYHQRXV LQMHFWLRQ RI IOXRURXUDFLO UHVXOWV LQ KLJK
HDUO\ OHYHOV RI GUXJ DFKLHYHG ERWK LQ SODVPD DQG ERQH PDUURZ ZLWK D
UDSLG IDOO DIWHUZDUGV 3URORQJHG LQIXVLRQV RI IOXRURXUDFLO VKRZ FRQVWDQW
OHYHOVRIWKHGUXJLQSODVPDDQGVLJQLILFDQWO\OHVVLQERQHPDUURZ

'LVWULEXWLRQ)OXRURXUDFLOGLVWULEXWHVLQWRWXPRUVLQWHVWLQDOPXFRVDERQH
PDUURZOLYHUWKLUGVSDFHIOXLGVDQGRWKHUWLVVXHV)OXRURXUDFLOGLIIXVHV
UHDGLO\DFURVVWKHEORRGEUDLQ EDUULHUDQGGLVWULEXWHV LQWRFHUHEURVSLQDO
IOXLGDQGEUDLQWLVVXH

0HWDEROLVP )OXRURXUDFLO LV SULPDULO\ PHWDEROL]HG LQ WKH OLYHU YLD
GLK\GURS\ULPLGLQH GHK\GURJHQDVH '3' WR WKH DFWLYH PHWDEROLWHV 
IOXRUR[\XULGLQHPRQRSKRVSKDWH)803DQGIOXRUR¶GHR[\XULGLQH
¶2PRQRSKRVSKDWH)G803

(OLPLQDWLRQ7KHPHDQHOLPLQDWLRQKDOIOLIHRIIOXRURXUDFLOIURPSODVPDLV
DSSUR[LPDWHO\PLQXWHVZLWKDUDQJHRIWRPLQXWHVDQGLVGRVH
GHSHQGHQW6PDOODPRXQWVRIIOXRURXUDFLODUHH[FUHWHGXQFKDQJHGLQWKH
XULQH
F
$GYHUVH())(&76

$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR)OXRURXUDFLO
/LNHO\!
/HVV/LNHO\±
5DUH EXW 6HULRXV

%/22'$1'/<03+$7,&6<67(0',625'(56

$JUDQXORF\WRVLV


$QHPLD


/HXNRSHQLD


3DQF\WRSHQLD


7KURPERF\WRSHQLD

&$5',$&',625'(56


$QJLQD


$UUK\WKPLD


&RURQDU\
DUWHULRVFOHURVLV
&$5',$&',625'(56FRQWG


+HDUWIDLOXUH


0\RFDUGLDO
LQIDUFWLRQ


0\RFDUGLDO
LVFKHPLD


9DVRVSDVP


9HQWULFXODUHFWRS\
(<(',625'(56

/DFULPDWLRQ


/DFULPDOGXFWVWHQRVLV


3KRWRSKRELD


9LVXDOFKDQJHV

*$6752,17(67,1$/',625'(56
$QRUH[LD
%OHHGLQJ
$FXWH
PHVHQWHULF
LVFKHPLD
'LDUUKHD
1DXVHD
8OFHUDWLRQ
(VRSKDJRSKDU\QJLWLV
9RPLWLQJ

CLOSED EFFECTIVE 07/01/2017
ERQH
RQ
GLIIXVHV
XVHV
UHEURVSLQDO
EURVSLQ
LQ WKH OLYHU
WKH OLYHU
FWLYH PHWDERO
YH PHWDERO
IOXRUR
UR¶¶GHR[
HR
RIIOXRURXUDF
RIIOXRURXUDF
RIWRP
RIWR
UDFLODUHH[FUH
DFLODUHH[FUH
VE
5HODWLRQVKLS
VE
TIV
TIVE
/HVV/LNH
VE
T
CTIV
&6<67(0
TIV
$JUD
$J
CT
CT
CT
CT
$
CT
CT
CT
CT
EC
EC
FE
FFE
$&',625'(
FE
FF
FF
EF
D E
5',$
D E
D


6

3DJH

9HUVLRQ'DWH
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR)OXRURXUDFLO
/LNHO\!
/HVV/LNHO\±
5DUH EXW 6HULRXV

6WRPDWLWLV


*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216

*HQHUDOL]HG
DOOHUJLF
UHDFWLRQV
$QDSK\OD[LV
1(592866<67(0',625'(56
+HDGDFKH
$FXWH
FHUHEHOODU
V\QGURPH
6WURNH

&RQIXVLRQ


'LVRULHQWDWLRQ


(XSKRULD


1\VWDJXPXV

5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56

(SLVWD[LV

6.,1$1'68%&87$1(2867,668(',625'(56
$ORSHFLD
9HLQSLJPHQWDWLRQ
6WHYHQV-RKQVRQ
V\QGURPH
'HUPDWLWLV

7R[LF
HSLGHUPDO
QHFURO\VLV
'U\VNLQ


)LVVXULQJ


+DQGIRRWV\QGURPH


0DFXORSDSXODUUDVK


1DLOFKDQJHV


3KRWRVHQVLWLYLW\


3UXULWLV


9$6&8/$5',625'(56

7KURPERSKOHELWLV


5HIHUWRSDFNDJHLQVHUWRUPDQXIDFWXUHUZHEVLWHIRUWKHPRVWFRPSOHWH
DQG XS WR GDWH LQIRUPDWLRQ RQ FRQWUDLQGLFDWLRQV ZDUQLQJV DQG
SUHFDXWLRQVDQGDGYHUVHUHDFWLRQV

3UHJQDQF\ DQG /DFWDWLRQ 3UHJQDQF\ &DWHJRU\ ' ([FUHWLRQ LQ KXPDQ
EUHDVW PLON LV XQNQRZQ DQG WKH PDQXIDFWXUHU UHFRPPHQGV DJDLQVW
EUHDVWIHHGLQJZKLOHUHFHLYLQJIOXRURXUDFLO

'UXJ,QWHUDFWLRQV)OXRURXUDFLOLVDVWURQJLQKLELWRURI&<3&35HIHUWR
WKHFXUUHQW)'$DSSURYHGSDFNDJHLQVHUWIRUDGGLWLRQDOLQIRUPDWLRQ'XH
WR SRWHQWLDO GUXJ LQWHUDFWLRQV D FRPSOHWH SDWLHQW PHGLFDWLRQ OLVW
LQFOXGLQJIOXRURXUDFLOVKRXOGEHVFUHHQHGSULRUWRLQLWLDWLRQRIDQGGXULQJ
WUHDWPHQW ZLWK IOXRURXUDFLO 6HH 6HFWLRQ  7R[LFLWLHV WR EH 0RQLWRUHG
DQG'RVDJH0RGLILFDWLRQV
G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ

5HIHU
WR
WKH
FXUUHQW
)'$DSSURYHG
SDFNDJH
LQVHUW
IRU
GUXJ
DGPLQLVWUDWLRQ

H
35(3$5$7,216725$*(	67$%,/,7<

5HIHU WR WKH FXUUHQW )'$DSSURYHG SDFNDJH LQVHUW IRU SUHSDUDWLRQ VWRUDJH
VWDELOLW\DQGVSHFLDOKDQGOLQJLQIRUPDWLRQ
CLOSED EFFECTIVE 07/01/2017
17
17
017
17
17
17
017
17
1
20
/20
/2
1/
0
/01
625'(5
01
/0
/0
/0
/0
7/0
7/0
(56
7/0
/0
/0
RQ
RQ
7/
07
E
VE
VE
IV
TIV
CT
CT
CT
CT
CT
CT
CT
CT
CT
EC
25'(5
C
EC
FE
HUWRSDFNDJH
HUWRSDFNDJH
QG XS WR G
QG XS WR G
SUHFDXWLRQV
SUHFDXWLR
3UHJQDQF\
3UHJQDQF
EF
EUHDVW
EUHD
EUHDV
UHDV

'UX
'UX
E
W
G
G


6

3DJH

9HUVLRQ'DWH
I
+2:6833/,('
)OXRURXUDFLO LV FRPPHUFLDOO\ DYDLODEOH DQG ZLOO QRW EH VXSSOLHG 5HIHU WR WKH
FXUUHQW)'$DSSURYHGSDFNDJHLQVHUWIRUDGGLWLRQDOLQIRUPDWLRQ


,ULQRWHFDQ&DPSWRVDU16&

D
3+$50$&2/2*<

0HFKDQLVPRI$FWLRQ,ULQRWHFDQDQGLWVPHWDEROLWH61LQKLELWWRSRLVRPHUDVH
, 7RSRLVRPHUDVH , UHOLHYHV WRUVLRQDO VWUDLQ LQ WKH '1$ KHOL[ GXULQJ UHSOLFDWLRQ
DQG 51$ WUDQVFULSWLRQ E\ LQGXFLQJ VLQJOHVWUDQG EUHDNV %\ ELQGLQJ ZLWK WKH
WRSRLVRPHUDVH ,²'1$ FRPSOH[ LULQRWHFDQ RU 61 SUHYHQWV WKH UHOLJDWLRQ RI
WKH VLQJOHVWUDQG EUHDNV ,UUHYHUVLEOH '1$ GDPDJH RFFXUV ZKHQ D '1$
UHSOLFDWLRQ IRUN HQFRXQWHUV WKH LULQRWHFDQ RU 61WRSRLVRPHUDVH , FRPSOH[HV
UHVXOWLQJ LQ GRXEOHVWUDQG '1$ EUHDNV &DPSWRWKHFLQV DUH KLJKO\ 6SKDVH
VSHFLILFLQWKHLUDFWLYLW\GXHWKHUHTXLUHPHQWRI'1$V\QWKHVLV
E
3+$50$&2.,1(7,&6


$EVRUSWLRQ1$

'LVWULEXWLRQ 3URWHLQ ELQGLQJ RI LULQRWHFDQ LV  ZKHUHDV 61
VKRZVDKLJKHUSURWHLQELQGLQJRI%RWKLULQRWHFDQDQG61DUH
SULPDULO\ ERXQG WR DOEXPLQ 9ROXPH RI GLVWULEXWLRQ RI LULQRWHFDQ LV
DSSUR[LPDWHO\/P

0HWDEROLVP ,ULQRWHFDQ LV PHWDEROL]HG SULPDULO\ LQ WKH OLYHU E\
FDUER[\OHVWHUDVHWR61DQGYLDKHSDWLFF\WRFKURPH3&<3$
WRDPLQRSHQWDQHFDUER[\OLFDFLG$3& 61LVFRQMXJDWHGWRIRUPD
JOXFXURQLGH PHWDEROLWH E\ WKH HQ]\PH 8'3JOXFXURQRV\O WUDQVIHUDVH
$ 8*7$ *HQHWLF SRO\PRUSKLVPV H[LVW LQ WKH HQ]\PH 8*7$
OHDGLQJ WR GLIIHUHQW OHYHOV RI H[SRVXUH DQG WR[LFLW\ DPRQJ SDWLHQWV  ,Q
DGGLWLRQERWKLULQRWHFDQDQG61XQGHUJRSODVPDK\GURO\VLVEHWZHHQ
WKHLU DFWLYH ODFWRQH DQG LQDFWLYH IRUPV FDUER[\ODWH )LQDOO\ D VPDOO
DPRXQWRILULQRWHFDQLVPHWDEROL]HGE\WKHLQWHVWLQDOZDOO

(OLPLQDWLRQ$SSUR[LPDWHO\RILULQRWHFDQLVUHFRYHUHGXQFKDQJHG
LQ XULQH ZKHUHDV RQO\ VPDOO DPRXQWV RI 61 KDYH EHHQ IRXQG
&OHDUDQFH LV DSSUR[LPDWHO\  /KUP ,Q DGGLWLRQ LULQRWHFDQ KDV
DSSUR[LPDWHO\ELOLDU\H[FUHWLRQ
F
$'9(56(())(&76
5HIHUWRSDFNDJHLQVHUWRUPDQXIDFWXUHUZHEVLWHIRUWKHPRVWFRPSOHWHDQGXSWR
GDWH LQIRUPDWLRQ RQ FRQWUDLQGLFDWLRQV ZDUQLQJV DQG SUHFDXWLRQV DQG DGYHUVH
UHDFWLRQV

$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR,ULQRWHFDQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

%/22'$1'/<03+$7,&6<67(0',625'(56
$QHPLD


/HXNRSHQLD


1HXWURSHQLD


7KURPERF\WRSHQLD


&$5',$&',625'(56
CLOSED EFFECTIVE 07/01/2017
SRLVRPHUDVH
SRLVRPHUDV
XULQJ UHSOLFDWLR
XULQJ UHSOLFDWLR
ELQGLQJ ZLWK
QGLQJ ZLWK
HQWV WKH UHOLJD
WV WKH UHOLJD
RFFXUV ZKHQ
RFFXUV ZKH
SRLVRPHUDVH ,
VRPHUDVH
KHFLQV DUH KL
FLQV DUH
$V\QWKHVLV
V\QWKHVLV
J RI LULQRWHFD
RI LULQRWHF
ELQGLQJRI
ELQGLQJRI
OEXPLQ 9ROXP
EXPLQ 9ROXP
/P
/P
ULQRWHFDQ LV
ULQRWHFDQ
UDVHWR
DVHWR 61
6 

HQWDQHFDUER[
HQWDQHFDUE
QLGH PHWDEROL
QLGH PHWDEROL
8*7$ *H
8*7$ *
GLQJ
GLQJ WR GLIIHUH
WR GLIIHUH
DGGLWLRQERWK
DGGLWLRQERWK
WKHLU DFWLYH
WKHLU DFWLY
DPRXQWR
DPRXQWR

(OLP
(OLP
E
LQLQ
FF


6

3DJH

9HUVLRQ'DWH
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR,ULQRWHFDQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV


+\SRWHQVLRQ

*$6752,17(67,1$/',625'(56
$EGRPLQDOSDLQ
'\VSHSVLD

&RQVWLSDWLRQ
)ODWXOHQFH

'LDUUKHD
6WRPDWLWLV

0XFRVLWLV


1DXVHD


9RPLWLQJ


*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216
$VWKHQLD
+\SHUVHQVLWLYLW\UHDFWLRQ

&KROLQHUJLFV\QGURPH


)HYHU


3DLQ


,1)(&7,216$1',1)(67$7,216
,QIHFWLRQ


,19(67,*$7,216

$EQRUPDOELOLUXELQ


$ODQLQHDPLQRWUDQVIHUDVH
LQFUHDVHG


$VSDUWDWHDPLQRWUDQVIHUDVH
LQFUHDVHG

0(7$%2/,60$1'1875,7,21',625'(56
$QRUH[LD


:HLJKWORVV


1(592866<67(0',625'(56
'L]]LQHVV
&RQIXVLRQ


+HDGDFKH


,QVRPQLD


6RPQROHQFH

5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56
&RXJK
3QHXPRQLD

'\VSQHD


6.,1$1'68%&87$1(2867,668(',625'(56
$ORSHFLD
&XWDQHRXVVLJQV


([IROLDWLYHGHUPDWLWLV


+DQGDQGIRRWV\QGURPH


5DVK

9$6&8/$5',625'(56

(GHPD


+HPRUUKDJH


7KURPERHPEROLFHYHQWV

$GYHUVH HYHQWV RFFXUULQJ LQ   SRVWPDUNHWLQJ DQGRU FDVH UHSRUWV
P\RFDUGLDO
LVFKHPLD
V\PSWRPDWLF
SDQFUHDWLWLV
+\SRQDWUHPLD
WUDQVLHQW
G\VDUWKULD


3UHJQDQF\ DQG /DFWDWLRQ 3UHJQDQF\ &DWHJRU\ ' ,W LV QRW NQRZQ
ZKHWKHULULQRWHFDQRULWVGHULYDWLYHVDUHH[FUHWHGLQKXPDQPLON

'UXJ ,QWHUDFWLRQV ,ULQRWHFDQ DQG LWV DFWLYH PHWDEROLWH 61 PD\ EH
VXEVWUDWHV
IRU
&<3$
&<3%
2$73%6&/2%
3
JO\FRSURWHLQ$%&% DQG 8*7$ ,QGXFHUV RU LQKLELWRUV PD\ DIIHFW
CLOSED EFFECTIVE 07/01/2017
17
17
17
17
01
01
20
/20
,216
/20
/2
1/
01
/0
/0
/0
/0
7/0
7/0
7/0
7/0
7/0
7/
7/
7/
7/
07
07
ELOLUXELQ
ELOLUXELQ
0
DPLQRWUDQVIHUD
DPLQRWUDQVIHUD
VHG
VHG
E 0
SDUWDWHDPLQRWU
DWHDPLQRWU
QFUHDVHG
QFUHDVHG
VE
TIV
7,21',625
IV
TIV
TI
CT
CT
',625'(5
CT
CT
CT
&
CT
CT
CT
CT
EC
EC
FE
FF
5$725<
FF
XJK
XJK
FF
'\VSQHD
'\VSQHD
EF
EF
6.,1$1'6
EF
$ORSHFLD
RSHFLD
E
D E
D


6

3DJH

9HUVLRQ'DWH
VHUXPFRQFHQWUDWLRQVRILULQRWHFDQ'XHWRSRWHQWLDOGUXJLQWHUDFWLRQVD
FRPSOHWHSDWLHQWPHGLFDWLRQOLVWLQFOXGLQJLULQRWHFDQVKRXOGEHVFUHHQHG
SULRU WR LQLWLDWLRQ RI DQG GXULQJ WUHDWPHQW ZLWK LULQRWHFDQ 5HIHU WR WKH
FXUUHQW)'$DSSURYHGSDFNDJHLQVHUW6HH6HFWLRQ7R[LFLWLHVWREH
0RQLWRUHGDQG'RVDJH0RGLILFDWLRQV
G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ

5HIHU
WR
WKH
FXUUHQW
)'$DSSURYHG
SDFNDJH
LQVHUW
IRU
GUXJ
DGPLQLVWUDWLRQ

H
35(3$5$7,216725$*(	67$%,/,7<

5HIHU WR WKH FXUUHQW )'$DSSURYHG SDFNDJH LQVHUW IRU VWRUDJH VWDELOLW\ DQG
VSHFLDOKDQGOLQJLQIRUPDWLRQ

I
+2:6833/,('

,ULQRWHFDQLVFRPPHUFLDOO\DYDLODEOHDQGZLOOQRWEHVXSSOLHG5HIHUWRWKHFXUUHQW
)'$DSSURYHGSDFNDJHLQVHUWIRUDGGLWLRQDOLQIRUPDWLRQ



/HXFRYRULQ16&

D
3+$50$&2/2*<

0HFKDQLVPRI$FWLRQ'XULQJQRUPDOSURFHVVHVWK\PLG\ODWHV\QWKHWDVHIRUPVD
QRQFRYDOHQWWHUQDU\FRPSOH[ZLWKGHR[\XULG\ODWHG803DQGWKHUHGXFHGIRODWH
FRIDFWRU RI OHXFRYRULQ PHWK\OWHWUDK\GURIRODWH 07+) 7KH UHGXFHG IRODWH
IDFLOLWDWHVWKHDVVRFLDWLRQDQGGLVDVVRFLDWLRQRIWKHFRPSOH[DQGWKHIRUPDWLRQRI
WK\PLG\ODWH
G703
DQG
GLK\GURIRODWH
)OXRURXUDFLO
LQKLELWV
WK\PLG\ODWH
V\QWKHWDVHWKURXJKWKHFRYDOHQWELQGLQJRIIOXRURGHR[\XULGLQHPRQRSKRVSKDWH
)G803DQG07+)7KHELQGLQJRI)G803LVGHSHQGHQWXSRQWKHLQWUDFHOOXODU
FRQFHQWUDWLRQ RI 07+) 6LQFH OOHXFRYRULQ LV PHWDEROL]HG WR 07+) LW
LQFUHDVHVDQGVWDELOL]HVWKHELQGLQJ RI)G803WRWK\PLG\ODWHV\QWKHWDVHWKXV
LQFUHDVLQJWKHF\WRWR[LFHIIHFWVRIIOXRURXUDFLO
E
3+$50$&2.,1(7,&6


$EVRUSWLRQ 6WXGLHV KDYH SURGXFHG ELRDYDLODELOLWLHV RI   DQG
IRUGRVHVRIPJPJDQGPJUHVSHFWLYHO\

'LVWULEXWLRQ/HXFRYRULQLVUDSLGO\FRQYHUWHGWRPHWK\OWHWUDK\GURIRODWH
07+)DQGZLGHO\GLVWULEXWHGWRWLVVXHVLQFOXGLQJWKH&167KHWLPHWR
SHDN FRQFHQWUDWLRQ IRU RUDO IRODWH LVRPHUV DQG 07+) LV  KRXUV 
PLQXWHVDQGKRXUUHVSHFWLYHO\

0HWDEROLVP /HXFRYRULQ LV PHWDEROL]HG E\ LQWHVWLQDO PXFRVD DQG
KHSDWLFDOO\WRWKHDFWLYHIRUP07+)

(OLPLQDWLRQ/HXFRYRULQLVSULPDULO\H[FUHWHGXQFKDQJHGLQWKHXULQHDQG
PLQLPDOO\ LQ WKH IHFHV /HXFRYRULQ KDV D KDOIOLIH HOLPLQDWLRQ RI
DSSUR[LPDWHO\WRKRXUV
CLOSED EFFECTIVE 07/01/2017
UW
IRU
GUXJ
UW
IRU
GUX
IRU VWRUDJH V
U VWRUDJH
OQRWEHVXSSO
RWEHVXSS
QDOLQIRUPDWLRQ
QDOLQIRUPDWLR
ULQJQRUPDOSU
ULQJQRUPDO
PSOH[ZLWKGH
PSOH[ZLWK
Q 
Q PHWK\O
PHWK WH
WH
FLDWLRQDQGGL
FLDWLRQDQG
703
DQG
703
DQG
URXJKWKHFRY
URXJKWKHFR
QG07+)7K
QG07+)7
DWLRQ RI 07
DWLRQ RI 0
VHVDQGVWDE
VHVDQGVWD
HDVLQJWKHF\W
HDVLQJWKHF\W
3+$50$&2
+$50$&




6

3DJH

9HUVLRQ'DWH
F
$'9(56(())(&76
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR/HXFRYRULQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

%/22'$1'/<03+$7,&6<67(0',625'(56

7KURPERF\WRVLV

*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216


$OOHUJLFUHDFWLRQV


$QDSK\ODFWRLG
UHDFWLRQV
0(7$%2/,60$1'1875,7,21',625'(56

+\SRFDOFHPLD

5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56

:KHH]LQJ

6.,1$1'68%&87$1(2867,668(',625'(56

5DVK


3UXULWLV


(U\WKHPD


8UWLFDULD


5HIHUWRSDFNDJHLQVHUWRUPDQXIDFWXUHUZHEVLWHIRUWKHPRVWFRPSOHWH
DQG XS WR GDWH LQIRUPDWLRQ RQ FRQWUDLQGLFDWLRQV ZDUQLQJV DQG
SUHFDXWLRQVDQGDGYHUVHUHDFWLRQV


3UHJQDQF\ DQG /DFWDWLRQ 3UHJQDQF\ &DWHJRU\ & ([FUHWLRQ LQ KXPDQ
EUHDVWPLONLVXQNQRZQ

'UXJ ,QWHUDFWLRQV /HXFRYRULQ PD\ LQWHUDFW ZLWK DQWLPHWDEROLWHV
DQWLIRODWHV DQG DQWLFRQYXOVDQWV 5HIHU WR WKH FXUUHQW )'$DSSURYHG
SDFNDJH LQVHUW IRU DGGLWLRQDO LQIRUPDWLRQ 'XH WR SRWHQWLDO GUXJ
LQWHUDFWLRQV D FRPSOHWH SDWLHQW PHGLFDWLRQ OLVW LQFOXGLQJ OHXFRYRULQ
VKRXOG EH VFUHHQHG SULRU WR LQLWLDWLRQ RI DQG GXULQJ WUHDWPHQW ZLWK
OHXFRYRULQ 6HH 6HFWLRQ  7R[LFLWLHV WR EH 0RQLWRUHG DQG 'RVDJH
0RGLILFDWLRQV
G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ

5HIHU
WR
WKH
FXUUHQW
)'$DSSURYHG
SDFNDJH
LQVHUW
IRU
GUXJ
DGPLQLVWUDWLRQ

H
35(3$5$7,216725$*(	67$%,/,7<

5HIHU WR WKH FXUUHQW )'$DSSURYHG SDFNDJH LQVHUW IRU SUHSDUDWLRQ VWRUDJH
VWDELOLW\DQGVSHFLDOKDQGOLQJLQIRUPDWLRQ

I
+2:6833/,('

/HXFRYRULQ LV FRPPHUFLDOO\ DYDLODEOH DQG ZLOO QRW EH VXSSOLHG 5HIHU WR WKH
FXUUHQW)'$DSSURYHGSDFNDJHLQVHUWIRUDGGLWLRQDOLQIRUPDWLRQ
CLOSED EFFECTIVE 07/01/2017
17
17
17
17
17
17
17
017
6
17
17
17
FUHDFWLRQV
FUHDFWLRQ
01
DSK\ODFWRLG
SK\ODFWRLG
HDFWLRQV
DFWLRQV
20
1/2
/2
1/2
01
/01
25'(
01
01
01
/01
01
01
01
7/0
(56
7/0
7/
07
PD
07
DULD
DULD
E 0
E
UPDQXIDFWXUH
PDQXIDFWXUH
RUPDWLRQ RQ
RUPDWLRQ RQ
HUVHUHDFWLRQV
HUVHUHDFWLRQ
/DFWDWLRQ
DFWDWLRQ 3UH
3U
CT
XQNQRZQ
XQNQR
WHUDFWLRQV /
WHUDFWLRQV /
EC
DWHV DQG DQW
HV DQG DQ
NDJH LQVHUW
NDJH LQVHUW
WHUDFWLRQV D
WHUDFWLRQV D
VKRXOG EH V
VKRXOG E
OHXFRYRULQ
OHXFRYRULQ
0RGLILFD
0RG
'26,1*	
6,1*	


H


6

3DJH

9HUVLRQ'DWH

2[DOLSODWLQ(OR[DWLQ16&

D
3+$50$&2/2*<

0HFKDQLVP RI $FWLRQ 2[DOLSODWLQ LV D QRQFHOO F\FOH VSHFLILF DON\ODWLQJ
DQWLQHRSODVWLF DJHQW WKDW LQKLELWV '1$ V\QWKHVLV WKURXJK WKH IRUPDWLRQ RI
FURVVOLQNV EHWZHHQ WKH 1 SRVLWLRQV RI WZR DGMDFHQW JXDQLQHV ** DGMDFHQW
DGHQLQHJXDQLQHV $* DQG JXDQLQHV VHSDUDWHG E\ DQ LQWHUYHQLQJ QXFOHRWLGH
*1*7KHVHFURVVOLQNVLQKLELW'1$UHSOLFDWLRQDQGWUDQVFULSWLRQ
E
3+$50$&2.,1(7,&6


$EVRUSWLRQ1$

'LVWULEXWLRQ $W WKHHQGRI DKRXULQIXVLRQDSSUR[LPDWHO\RIWKH
DGPLQLVWHUHG R[DOLSODWLQ LV SUHVHQW LQ WKH V\VWHPLF FLUFXODWLRQ 7KH
UHPDLQLQJ  LV UDSLGO\ GLVWULEXWHG LQWR WLVVXHV RU HOLPLQDWHG LQ WKH
XULQH,QSDWLHQWVSODVPDSURWHLQELQGLQJRIR[DOLSODWLQLVLUUHYHUVLEOHDQG
JUHDWHUWKDQ7KHPDLQELQGLQJSURWHLQVDUHDOEXPLQDQGJDPPD
JOREXOLQV 1R R[DOLSODWLQ DFFXPXODWLRQ ZDV REVHUYHG LQ SODVPD
XOWUDILOWUDWHIROORZLQJPJPHYHU\WZRZHHNV

0HWDEROLVP 2[DOLSODWLQ XQGHUJRHV UDSLG DQG H[WHQVLYH QRQHQ]\PDWLF
ELRWUDQVIRUPDWLRQ 7KHUH LV QR HYLGHQFH RI F\WRFKURPH 3PHGLDWHG
PHWDEROLVPLQYLWUR8SWRSODWLQXPFRQWDLQLQJGHULYDWLYHVKDYHEHHQ
REVHUYHGLQSODVPDXOWUDILOWUDWHVDPSOHVIURPSDWLHQWVLQFOXGLQJVHYHUDO
F\WRWR[LFVSHFLHVDQGDQXPEHURIQRQF\WRWR[LFFRQMXJDWHGVSHFLHV

(OLPLQDWLRQ7KHPDMRUURXWHRIR[DOLSODWLQHOLPLQDWLRQLVUHQDOH[FUHWLRQ
$WILYHGD\VDIWHUDVLQJOHKRXULQIXVLRQXULQDU\HOLPLQDWLRQDFFRXQWHG
IRUDERXWRIWKHSODWLQXPHOLPLQDWHGZLWKIHFDOH[FUHWLRQDFFRXQWLQJ
IRURQO\DERXW2[DOLSODWLQZDVFOHDUHGIURPSODVPDDWDUDWH±
/K WKDW ZDV VLPLODU WR RU H[FHHGHG WKH DYHUDJH KXPDQ JORPHUXODU
ILOWUDWLRQUDWH*)5/K7KHUHZDVQRVLJQLILFDQWHIIHFWRIJHQGHURQ
WKH FOHDUDQFH RI XOWUDILOWHUDEOH R[DOLSODWLQ 7KH UHQDO FOHDUDQFH RI
XOWUDILOWHUDEOHR[DOLSODWLQLVVLJQLILFDQWO\FRUUHODWHGZLWK*)5
F
$'9(56(())(&76

5HIHUWRSDFNDJHLQVHUWRUPDQXIDFWXUHUZHEVLWHIRUWKHPRVWFRPSOHWHDQGXSWR
GDWH LQIRUPDWLRQ RQ FRQWUDLQGLFDWLRQV ZDUQLQJV DQG SUHFDXWLRQV DQG DGYHUVH
UHDFWLRQV

$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR2[DOLSODWLQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

%/22'$1'/<03+$7,&6<67(0',625'(56
$QHPLD
'LVVHPLQDWHGLQWUDYDVFXODU
FRDJXODWLRQ
7KURPERWLF
WKURPERF\WRSHQLF
SXUSXUD

)HEULOHQHXWURSHQLD


+HPRO\VLV

&$5',$&',625'(56

$WULDOILEULOODWLRQ


$WULDOIOXWWHU


3DUR[\VPDODWULDO
WDFK\FDUGLD

CLOSED EFFECTIVE 07/01/2017
J
RI
RI
DFHQW
FHQ
FOHRWLGH
FOHRWLGH
DSSUR[LPDWHO\
SUR[LPDWHO\
V\VWHPLF FLU
V\VWHPLF
WLVVXHV RU H
WLVVXHV RU H
JRIR[DOLSODWLQ
RIR[DOLSOD
SURWHLQVDUH
SURWHLQVDUH
PXODWLRQ ZDV
WLRQ ZDV
YHU\WZRZHHN
YHU\WZRZHHN
GHUJRHV UDSLG
HUJRHV UDS
LV QR HYLGHQ
LV QR HYLGHQ
SWRSODWLQX
WRSODWLQX
XOWUDILOWUDWHVD
XOWUDILOWUDWHV
DQGDQXPEHU
DQGDQXPE
7KHPDMRUURX
KHPDMRUURX
\VDIWHUDVL
\VDIWHUDVLQJ
Q
XWRIWKHS
WRIWKHS
QO\DERXW2
O\DERXW
 WKDW ZDV V
 WKDW ZDV V
ILOWUDWLRQUDWH*
LOWUDWLRQUDWH
WKH FOHDUDQ
WKH FOHDU
XOWUDILOWHUD
XOWUDILOWHUD
$'9(56((
'9(56(
5HIHUWR
5H
GDWH
DW
UHD
UH


6

3DJH

9HUVLRQ'DWH
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR2[DOLSODWLQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV


6LQXVEUDG\FDUGLD


6LQXVWDFK\FDUGLD


6XSUDYHQWULFXODU
WDFK\FDUGLD


9HQWULFXODUDUUK\WKPLD


9HQWULFXODUILEULOODWLRQ


9HQWULFXODUWDFK\FDUGLD

($5$1'/$%<5,17+',625'(56

+HDULQJLPSDLUHG


0LGGOHHDULQIODPPDWLRQ

(<(',625'(56

&RQMXQFWLYLWLV


'U\H\H


(\HGLVRUGHUV2WKHU
DPDXURVLVIXJD[


(\HGLVRUGHUV2WKHUFROG
LQGXFHGWUDQVLHQWYLVXDO
DEQRUPDOLWLHV


(\HOLGIXQFWLRQGLVRUGHU


3DSLOOHGHPD

*$6752,17(67,1$/',625'(56
'LDUUKHD
$EGRPLQDOSDLQ
*DVWURLQWHVWLQDO
GLVRUGHUV±
2WKHUSQHXPDWRVLV
LQWHVWLQDOLV
1DXVHD
$VFLWHV

9RPLWLQJ
&ROLWLV


&RQVWLSDWLRQ


'U\PRXWK


'\VSHSVLD


'\VSKDJLD


(QWHURFROLWLV

*$6752,17(67,1$/',625'(56FRQWG

(VRSKDJLWLV


)ODWXOHQFH


*DVWULWLV


*DVWURLQWHVWLQDO
KHPRUUKDJH


*DVWURLQWHVWLQDOQHFURVLV


*DVWURLQWHVWLQDOXOFHU


,OHXV


0XFRVLWLVRUDO


3DQFUHDWLWLV


6PDOOLQWHVWLQDOREVWUXFWLRQ

*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216
)DWLJXH
&KLOOV


(GHPDIDFH


(GHPDOLPEV


)HYHU


*DLWGLVWXUEDQFH

*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216FRQWG

*HQHUDOGLVRUGHUVDQG

CLOSED EFFECTIVE 07/01/2017
17
17
17
17
017
17
17
01
20
20
20
/20
/2
1/
01/
1/
01
/0
/0
/0
/01
7/0
HUU
[
7/0
7/0
7/0
7/0
2WKHUFROG
2WKHUFROG
VLHQWYLVXDO
QWYLVXD
LWLHV
LWLH
07/
7/
7/
7/
IXQFWLRQGLVRUG
IXQFWLRQ
E 0
SLOOHGHPD
OHGHPD
E
VE
(
VE
$EGRPLQDOS
$EGRPLQD
V
CT
$V
$V
CT
CT
CT
CT
CT
CT
EC
EC
FE
FF
FF
EF
*$6752,1
EF
EF
E
D E
D


6

3DJH

9HUVLRQ'DWH
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR2[DOLSODWLQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

DGPLQLVWUDWLRQVLWH
FRQGLWLRQV2WKHU+HSDWR
UHQDOV\QGURPH

,QMHFWLRQVLWHUHDFWLRQ


1RQFDUGLDFFKHVWSDLQ

+(3$72%,/,$5<',625'(56

+HSDWLFIDLOXUH
&KROHF\VWLWLV

+HSDWRELOLDU\GLVRUGHUV
2WKHUKHSDWLFHQODUJHPHQW


+HSDWRELOLDU\GLVRUGHUV
2WKHUYHQRRFFOXVLYHOLYHU
GLVHDVH

,0081(6<67(0',625'(56

$OOHUJLFUHDFWLRQ

,1)(&7,216$1',1)(67$7,216

,QIHFWLRQ

,19(67,*$7,216
$ODQLQHDPLQRWUDQVIHUDVH
LQFUHDVHG
$FWLYDWHGSDUWLDO
WKURPERSODVWLQWLPH
SURORQJHG

$VSDUWDWHDPLQRWUDQVIHUDVH
LQFUHDVHG
$ONDOLQHSKRVSKDWDVH
LQFUHDVHG

3ODWHOHWFRXQWGHFUHDVHG
%ORRGELOLUXELQLQFUHDVHG


&UHDWLQLQHLQFUHDVHG


**7LQFUHDVHG


,15LQFUHDVHG


/\PSKRF\WHFRXQW
GHFUHDVHG


1HXWURSKLOFRXQWGHFUHDVHG


:HLJKWJDLQ


:HLJKWORVV


:KLWHEORRGFHOOGHFUHDVHG

0(7$%2/,60$1'1875,7,21',625'(56

$FLGRVLV


$QRUH[LD


'HK\GUDWLRQ


+\SHUJO\FHPLD


+\SHUXULFHPLD


+\SRDOEXPLQHPLD


+\SRFDOFHPLD


+\SRJO\FHPLD


+\SRNDOHPLD


+\SRPDJQHVHPLD


+\SRQDWUHPLD


+\SRSKRVSKDWHPLD

086&8/26.(/(7$/$1'&211(&7,9(7,6685(',625'(56

$UWKUDOJLD


%DFNSDLQ


%RQHSDLQ


0\DOJLD


7ULVPXV

1(592866<67(0',625'(56
CLOSED EFFECTIVE 07/01/2017
17
17
17
17
17
017
17
17
17
WLV
01
20
/2
0
/01
01
/0
/0
/0
7/0
7/0
7/0
7/0
7/0
7/
7/
7/
7/
07
07
SDUWLDO
SD
RSODVWLQWLPH
RSODVWLQWLPH
RQJHG
QJHG
0
NDOLQHSKRVSKD
QHSKRVSKD
LQFUHDVHG
QFUHDVH
VE
%ORRGELOLUXE
%ORRGELOLU
V
T
&UHDWLQLQ
&UHD
TIV
T
**7
7
TI
CT
,15
,1
CT
CT
CT
CT
CT
CT
EC
FE
FE
FF
EF
(7$%2/
FF
EF
E
D E
D


6

3DJH

9HUVLRQ'DWH
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR2[DOLSODWLQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

3HULSKHUDOVHQVRU\QHXURSDWK\
$WD[LD


'HSUHVVHGOHYHORI
FRQVFLRXVQHVV


'L]]LQHVV


'\VJHXVLD


'\VSKDVLD


([WUDS\UDPLGDOGLVRUGHU

1(592866<67(0',625'(56FRQWG

+HDGDFKH


,QWUDFUDQLDOKHPRUUKDJH


,VFKHPLDFHUHEURYDVFXODU


1HUYHGLVRUGHU


1HUYRXVV\VWHPGLVRUGHUV
2WKHUPXOWLSOHFUDQLDOQHUYH
SDOVLHV


3HULSKHUDOPRWRUQHXURSDWK\


6HL]XUH

36<&+,$75,&',625'(56

$Q[LHW\


&RQIXVLRQ


'HSUHVVLRQ


,QVRPQLD

5(1$/$1'85,1$5<',625'(56

+HPDWXULD
$FXWHNLGQH\LQMXU\

5HQDOKHPRUUKDJH


8ULQDU\IUHTXHQF\


8ULQDU\UHWHQWLRQ

5(352'8&7,9(6<67(0$1'%5($67',625'(56

+HPDWRVDOSLQ[

2YDULDQKHPRUUKDJH

3URVWDWLFKHPRUUKDJH

6SHUPDWLFFRUGKHPRUUKDJH
5(352'8&7,9(6<67(0$1'%5($67',625'(56FRQW

7HVWLFXODUKHPRUUKDJH


8WHULQHKHPRUUKDJH


9DJLQDOKHPRUUKDJH

5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56

$OOHUJLFUKLQLWLV
$GXOWUHVSLUDWRU\
GLVWUHVVV\QGURPH
%URQFKRSXOPRQDU\
KHPRUUKDJH

%URQFKRVSDVP


&RXJK


'\VSQHD


+LFFXSV


3QHXPRQLWLV


3XOPRQDU\ILEURVLV


6LQXVGLVRUGHU


9RLFHDOWHUDWLRQ

6.,1$1'68%&87$1(2867,668(',625'(56

$ORSHFLD
3DOPDUSODQWDU
HU\WKURG\VHVWKHVLD
CLOSED EFFECTIVE 07/01/2017
17
17
17
17
017
17
17
01
20
20
20
/20
/2
1/
01
/0
HUV 
DOQHUYH
OQHUYH
/0
/0
/01
7/0
UQHXURSDWK\
QHXURSDWK\
07/
7/
7/
7/
07
E 0
\
E 0
IXVLRQ
VLRQ
VE
'HSUHVVLRQ
'HSUHVVLR
VE
,QVRPQLD
,QVRPQLD
V
TIV
,625'(5
TIV
+HPDW
+HPDW
TI
CT
5HQ
5H
CT
CT
CT
CT
8
CT
CT
CT
CT
EC
FEC
,9(6<67(0
EC
FE
FE
FF
EF
EF
5(352'8&7
EF
E
D E
D
5
D


6

3DJH

9HUVLRQ'DWH
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR2[DOLSODWLQ
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

V\QGURPH

'U\VNLQ


+\SHUKLGURVLV


3UXULWXV


5DVKPDFXORSDSXODU


8UWLFDULD

9$6&8/$5',625'(56

)OXVKLQJ


+RWIODVKHV


+\SHUWHQVLRQ


+\SRWHQVLRQ


3KOHELWLV


7KURPERHPEROLFHYHQW


9DVFXODUGLVRUGHUV2WKHU
KHPRUUKDJHZLWK
WKURPERF\WRSHQLD


3UHJQDQF\ DQG /DFWDWLRQ 3UHJQDQF\ &DWHJRU\ ' ,W LV QRW NQRZQ
ZKHWKHUR[DOLSODWLQRULWVGHULYDWLYHVDUHH[FUHWHGLQKXPDQPLON

'UXJ,QWHUDFWLRQV1RVSHFLILFF\WRFKURPH3EDVHGGUXJLQWHUDFWLRQ
VWXGLHVKDYHEHHQFRQGXFWHG%HFDXVHSODWLQXPFRQWDLQLQJVSHFLHVDUH
HOLPLQDWHGSULPDULO\WKURXJKWKHNLGQH\FOHDUDQFHRIWKHVHSURGXFWVPD\
EHGHFUHDVHGE\FRDGPLQLVWUDWLRQRISRWHQWLDOO\QHSKURWR[LFFRPSRXQGV
DOWKRXJK WKLV KDV QRW EHHQ VSHFLILFDOO\ VWXGLHG 5HIHU WR WKH FXUUHQW
)'$DSSURYHG SDFNDJH LQVHUW 6HH 6HFWLRQ  7R[LFLWLHV WR EH
0RQLWRUHGDQG'RVDJH0RGLILFDWLRQV
G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ

5HIHU
WR
WKH
FXUUHQW
)'$DSSURYHG
SDFNDJH
LQVHUW
IRU
GUXJ
DGPLQLVWUDWLRQ

H
35(3$5$7,216725$*(	67$%,/,7<

5HIHU WR WKH FXUUHQW )'$DSSURYHG SDFNDJH LQVHUW IRU VWRUDJH VWDELOLW\ DQG
VSHFLDOKDQGOLQJLQIRUPDWLRQ

I
+2:6833/,('

2[DOLSODWLQLVFRPPHUFLDOO\DYDLODEOHDQGZLOOQRWEHVXSSOLHG5HIHUWRWKHFXUUHQW
)'$DSSURYHGSDFNDJHLQVHUWIRUDGGLWLRQDOLQIRUPDWLRQ



3HJILOJUDVWLP1HXODVWD16&

D
3+$50$&2/2*<

0HFKDQLVP RI $FWLRQ 6LPLODU WR ILOJUDVWLP SHJILOJUDVWLP LV D FRORQ\VWLPXODWLQJ
IDFWRU WKDW DFWV RQ KHPDWRSRLHWLF FHOOV E\ ELQGLQJ WR VSHFLILF FHOO VXUIDFH
UHFHSWRUVWKHUHE\VWLPXODWLQJSUROLIHUDWLRQGLIIHUHQWLDWLRQFRPPLWPHQWDQGHQG
FHOOIXQFWLRQDODFWLYDWLRQ6WXGLHVRQFHOOXODUSUROLIHUDWLRQUHFHSWRUELQGLQJDQG
7
17
17
17
17
017
17
17
1
201
01
20
/20
/2
1/
01
/0
/0
/0
/0
7/0
2WKHU
2WKH
QLD
D
7/0
7/0
7/0
07/0
3UHJQDQF\ &D
UHJQDQ
ULYDWLYHVDUHH
YDWLYHVDUH
VSHFLILFF\WRF
VSHFLILFF\
FRQGXFWHG%H
FRQGXFWHG%H
ULO\WKURXJKWKH
\WKURXJKWK
E\FRDGPLQLVW
E\FRDGPLQ
LV KDV QRW EH
KDV QRW E
RYHG SDFNDJ
RYHG SDFND
UHGDQG'RVDJ
HGDQG'RVDJ
$'0,1,675
$'0,1,675
'RVLQJ
'RVLQJ±
±6

5HIHU
5HIH
DGP
DGP
35(3$
35
5
II


6

3DJH

9HUVLRQ'DWH
QHXWURSKLOIXQFWLRQGHPRQVWUDWHWKDWILOJUDVWLPDQGSHJILOJUDVWLPKDYHWKHVDPH
PHFKDQLVPRIDFWLRQ

E
3+$50$&2.,1(7,&6

$EVRUSWLRQ6LPLODUWRILOJUDVWLPILUVWRUGHUSKDUPDFRNLQHWLFPRGHOLQJLVH[SHFWHG
ZLWK PD[LPXP VHUXP FRQFHQWUDWLRQ UHDFKHG ZLWKLQ  WR  KRXUV DIWHU
VXEFXWDQHRXVLQMHFWLRQ

'LVWULEXWLRQ 6LPLODU WR ILOJUDVWLP YROXPH RI GLVWULEXWLRQ RI DYHUDJHG DW
P/NJ

0HWDEROLVP8QNQRZQ

(OLPLQDWLRQ  1HXWURSKLO UHFHSWRU ELQGLQJ LV DQ LPSRUWDQW FRPSRQHQW RI
WKHFOHDUDQFHRISHJILOJUDVWLPDQGVHUXPFOHDUDQFHLVGLUHFWO\UHODWHGWR
WKH QXPEHU RI QHXWURSKLOV 3HJILOJUDVWLP KDV UHGXFHG UHQDO FOHDUDQFH
DQGSURORQJHGSHUVLVWHQFHLQYLYRDVFRPSDUHGZLWKILOJUDVWLP7KHKDOI
OLIH RI SHJILOJUDVWLP UDQJHV IURP  WR  KRXUV DIWHU VXEFXWDQHRXV
LQMHFWLRQ
F
$'9(56(())(&76

3RVVLEOH 6LGH (IIHFWV RI 3HJILOJUDVWLP 5HIHU WR WKH FXUUHQW )'$
DSSURYHG SDFNDJH LQVHUW IRU WKH PRVW FRPSUHKHQVLYH DQG XS WR GDWH
LQIRUPDWLRQ RQ DGYHUVH UHDFWLRQV 0RVW IUHTXHQW DGYHUVH UHDFWLRQV DUH
VNHOHWDOSDLQ

3UHJQDQF\ DQG /DFWDWLRQ &DWHJRU\ & SHJILOJUDVWLP VKRXOG EH XVHG
GXULQJSUHJQDQF\RQO\LIWKHSRWHQWLDOEHQHILWMXVWLILHVWKHSRWHQWLDOULVNWR
WKHIHWXV$QLPDOVWXGLHVKDYHGHPRQVWUDWHGDGYHUVHHIIHFWVDQGIHWDO
ORVV  3HJILOJUDVWLP KDV EHHQ VKRZQ WR FURVV WKH SODFHQWD LQ KXPDQV
7KHUHDUHQRDGHTXDWHDQGZHOOFRQWUROOHGVWXGLHVLQSUHJQDQWZRPHQ
([FUHWLRQLQEUHDVWPLONXQNQRZQXVHFDXWLRQ

'UXJ,QWHUDFWLRQV'UXJLQWHUDFWLRQVEHWZHHQILOJUDVWLPDQGRWKHUGUXJV
KDYHQRWEHHQIXOO\HYDOXDWHG'UXJVVXFKDVOLWKLXPPD\SRWHQWLDWHWKH
UHOHDVH RI QHXWURSKLOV HQVXUH WKDW SDWLHQWV UHFHLYLQJ OLWKLXP DQG
SHJILOJUDVWLPKDYHPRUHIUHTXHQWPRQLWRULQJRIQHXWURSKLOFRXQWV
3HJILOJUDVWLP VKRXOG QRW EH DGPLQLVWHUHG RQ WKH VDPH GD\ ZLWK
DQWLFDQFHU FKHPRWKHUDSHXWLF DJHQWV ZLWK OHXNRF\WH VXSSUHVVLYH
SURSHUWLHV

3HJILOJUDVWLPLVFRQWUDLQGLFDWHGLQSDWLHQWVZLWKK\SHUVHQVLWLYLW\WR(FROL
GHULYHGSURWHLQVILOJUDVWLPRUDQ\FRPSRQHQWRIWKHSURGXFW

G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ

5HIHU
WR
WKH
FXUUHQW
)'$DSSURYHG
SDFNDJH
LQVHUW
IRU
GUXJ
DGPLQLVWUDWLRQ

H
35(3$5$7,216725$*(	67$%,/,7<

5HIHU WR WKH FXUUHQW )'$DSSURYHG SDFNDJH LQVHUW IRU VWRUDJH VWDELOLW\ DQG
VSHFLDOKDQGOLQJLQIRUPDWLRQ
CLOSED EFFECTIVE 07/01/2017
G
WHU
HU
YHUDJHG DW
HUDJHG
PSRUWDQW FRP
PSRUWDQW FRP
UDQFHLVGLUHFW
UDQFHLVGLUHF
DV UHGXFHG UH
DV UHGXFHG
SDUHGZLWKILOJ
SDUHGZLWKILOJ
R  KRXUV D
 KRXUV
3HJILOJUDVWLP
3HJILOJUDVWLP
VE
W IRU WKH PRV
W IRU WKH PRV
H UHDFWL
H UHDFWLRQV
RQ
0

G /DFWDWLRQ
G /DFWDWLRQ &
CT
DQF\RQO\LIWK
QF\RQO\LIWK
$QLPDOVWXGL
$QLPDOVWX
3HJI
HJILOJUDVWLP K
JUDVWLP K
HDUHQRDGHT
HDUHQRDGH
FUHWLRQLQEUHD
FUHWLRQLQEUHD
'UXJ,QWHUD
'UXJ,QWH
FF
KDYHQRW
KDY
UHOHDVH
UHOHD
SHJI
SHJ


6

3DJH

9HUVLRQ'DWH
I
+2:6833/,('


3HJ\ODWHG5HFRPELQDQW+XPDQ+\DOXURQLGDVH3(*3+16&,1'

D
3+$50$&2/2*<

0HFKDQLVPRI$FWLRQ+\DOXURQLFDFLG+$LVDOLQHDUUHSHDWLQJSRO\VDFFKDULGH
WKDW FRQVLVWV RI 1DFHW\OJOXFRVDPLQH DQG JOXFXURQLF DFLG GLVDFFKDULGH XQLWV
3(*\ODWHG UHFRPELQDQW KXPDQ K\DOXURQLGDVH 3(*3+ LV D 3(*\ODWHG
YHUVLRQ RI KXPDQ UHFRPELQDQW 3+ K\DOXURQLGDVH U+X3+  3(*\ODWHG
U+X3+ GHPRQVWUDWHV D VLJQLILFDQWO\ LQFUHDVHG KDOIOLIH UHODWLYH WR WKH QRQ
3(*\ODWHGU+X3+,QYLWURVWXGLHVVKRZHGWKDW+$LVUHV\QWKHVL]HGZLWKLQ
KRXUV VXJJHVWLQJ WKDW VXVWDLQHG DFWLYLW\ RI 3(*3+ LV QHHGHG  3(*3+
HQ]\PDWLFDOO\ GHSOHWHV +$ ZKLFK LV WKH VXEVWUDWH IRU WKH HQ]\PH IURP WKH
H[WUDFHOOXODU PDWUL[ (&0 RI WXPRU FHOOV E\ GHSRO\PHUL]LQJ WKH VXEVWUDWH  %\
FKDQJLQJWKH(&0VXUURXQGLQJVWKHUHLVDQLQFUHDVHLQWKHSHQHWUDWLRQRIGUXJV
VXFK DV DQWLWXPRU GUXJV 7XPRUV WKDW DFFXPXODWH +$ DUH PRUH VHQVLWLYH WR
3(*3+ DORQH RU LQ FRPELQDWLRQ ZLWK FKHPRWKHUDS\ 2WKHU EHQHILFLDO
PHFKDQLVPV SURSRVHG LQFOXGH UHPRGHOLQJ RI WXPRU VWURPD GHFUHDVHG WXPRU
LQWHUVWLWLDOIOXLGSUHVVXUH,)3LVFRUUHODWHG ZLWKWXPRUVWKDWKDYH KLJKOHYHOVRI
+$ DQG H[SDQVLRQ RI EORRG YHVVHOV ,Q DGGLWLRQ WKH UROH LQ PHWDVWDVLV PD\
LQFOXGH UHGXFLQJ FHOO DGKHVLRQ DQG LQYDVLRQ DQG GHFUHDVLQJ PHWDVWDWLF WXPRU
EXUGHQ
E
3+$50$&2.,1(7,&6


/LPLWHG VWXGLHV KDYH EHHQ FRQGXFWHG WR GLUHFWO\ DQDO\]H DEVRUSWLRQ
GLVWULEXWLRQPHWDEROLVPDQGH[FUHWLRQRI3(*3+


$EVRUSWLRQ  'H[DPHWKDVRQH ZKHQ DGPLQLVWHUHG ZLWK 3(*3+ ZDV
IRXQGWRQRWDOWHUWKHSKDUPDFRNLQHWLFVRILQWUDYHQRXV,93(*3+LQ
EHDJOHGRJV

'LVWULEXWLRQ0RVWOLNHO\KDVDVPDOOYROXPHRIGLVWULEXWLRQLQKXPDQV,Q
VLQJOHGRVH,9VWXGLHVLQPLFHDQGPRQNH\VSODVPDDFWLYLW\GHFUHDVHGLQ
ELSKDVLFPDQQHUDQGWKHGUXJKDGDIDVWLQLWLDOGLVWULEXWLRQSKDVH

0HWDEROLVP1RWDYDLODEOH

(OLPLQDWLRQ  ,Q PLFH U+X3+ KDV D YHU\ VKRUW KDOIOLIH Wò RI 
PLQXWHV  7KH UDSLG +$ UHV\QWKHVLV ZLWKLQ  KUV LQ LQYLWUR VWXGLHV
PDGHLWHVVHQWLDOWRFUHDWHWKH3(*O\DWHGYHUVLRQZKLFKH[WHQGHGWKHWò
LQPLFHWRKRXUV3UHOLPLQDU\SKDUPDFRNLQHWLFVVWXGLHVLQKXPDQV
VKRZ D VORZ SODVPD FOHDUDQFH DQG D WHUPLQDO Wò RI DSSUR[LPDWHO\ 
GD\V7KHORQJHUWòQRWRQO\VXVWDLQVWKHGXUDWLRQRIDFWLRQWRGHJUDGH
+$ EXW DOVR KHOSV SUHYHQW UHDFFXPXODWLRQV RI +$  $IWHU UHSHDWHG
GRVLQJRI3(*3+WKHUHZDVQRHYLGHQFHRIVLJQLILFDQWDFFXPXODWLRQ
RIWKHGUXJLQWKHSODVPDJUDVWLPLVFRPPHUFLDOO\DYDLODEOHDQGZLOOQRW
EHVXSSOLHG5HIHUWRWKHFXUUHQW)'$DSSURYHGSDFNDJHLQVHUW
KDULGH
ULG
H XQLWV
H XQLWV
3(*\ODWHG
(*\ODW
 3(*\ODWHG
 3(*\ODWH
YH WR WKH QR
YH WR WKH QR
WKHVL]HGZLWKL
VL]HGZLWK
QHHGHG  3(*
HHGHG  3(*
WKH HQ]\PH
WKH HQ]\PH
HUL]LQJ WKH VXE
]LQJ WKH VX
HLQWKHSHQHWU
QWKHSHQ
DWH +$ DUH P
DWH +$ DUH P
KHPRWKHUDS\
HPRWKHUDS
RI WXPRU VWURP
I WXPRU VWURP
ZLWKWXPRUVW
WKWXPRUV
,Q DGGLWLRQ WK
Q DGGLWLRQ W
QYDVLRQ DQG
QYDVLRQ
KDYH EHHQ FR
DYH EHHQ F
WDEROLVPDQG
WDEROLVPD

'

'H[DPHWKD
H[DPHW
E
RQRWDOWHUWKH
RQRWDOWHUWKH
HGRJV
HGRJV
'LVWULEXWLRQ
'LVWULEXWL
0
FF
VLQJOHGRVH
VLQJOHGRV
ELSKDVLF
ELSK

0HWD
0H
E




6

3DJH

9HUVLRQ'DWH
F
$'9(56(())(&76


+XPDQGDWD
$GYHUVH(YHQWVZLWK3RVVLEOH5HODWLRQVKLSWR3(*3+
/LNHO\!
/HVV/LNHO\±
5DUHEXW6HULRXV

%/22'$1'/<03+$7,&6<67(0',625'(56

$QHPLD


7KURPERF\WRSHQLD

&$5',$&',625'(56

$WULDOILEULOODWLRQ


+\SRWHQVLRQ

*$6752,17(67,1$/',625'(56
$EGRPLQDOGLVWHQVLRQ
'LDUUKHD

$EGRPLQDOSDLQ
'U\PRXWK

&RQVWLSDWLRQ
'\VJHXVLD

1DXVHD


9RPLWLQJ


*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216
'\VSKRQLD
$VWKHQLD

)DWLJXH
&RQWXVLRQ


,QIXVLRQUHDFWLRQV


2URSKDU\QJHDOSDLQ


3\UH[LD


:HLJKWLQFUHDVH

,1)(&7,216$1',1)(67$7,216

&HOOXOLWLV


8ULQDU\ WUDFWLQIHFWLRQ

,19(67,*$7,216

+\SRQDWUHPLD

0(7$%2/,60$1'1875,7,21',625'(56
'HFUHDVHGDSSHWLWH


086&8/26.(/(7$/$1'&211(&7,9(7,6685(',625'(56PRVW
FRPPRQEXWGRVHUHODWHGDQGFRQWUROOHGZLWKGH[DPHWKDVRQH
$UWKUDOJLD
%DFNSDLQ

0XVFOHVSDVPV
([WUHPLW\SDLQ

0\DOJLD
0XVFOHDWURSK\


0XVFOHZHDNQHVV

5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56

'\VSQHD


(DUFRQJHVWLRQ


3QHXPRQLWLV

6.,1$1'68%&87$1(2867,668(',625'(56
2HGHPDSHULSKHUDO
$VFLWHV

9$6&8/$5',625'(56


'HHSYHLQWKURPERVLV


3XOPRQDU\HPEROLVP
$GYHUVHHYHQWVRFFXUULQJLQSRVWPDUNHWLQJDQGRUFDVHUHSRUWVSDWLHQW
GLHG GXH WR D FHUHEURYDVFXODU DFFLGHQW DQG HPEROLVP WKDW PD\ KDYH EHHQ
UHODWHGWR3(*3+


7
17
17
17
017
017
17
17
17
01
201
/20
20
/2
1/2
01/
1/
01
/0
7/
7/
7/
7/0
7/
7/
7/
7/
07/
07
07
07
E 0
75$7,216
07
07
E 0
RQ
RQ
E
RQUHDFWLRQV
UHDFWLRQV
VE
RSKDU\QJHDOS
RSKDU\QJHDOS
VE
3\UH[LD
3\UH[LD
IV
TIV
TIV
:HLJKWLQ
TIV
T
CTI
)(67$7,
TI
&HOOXOL
&HOOXO
CT
CT
CT
CT
8ULQ
8
CT
CT
CT
CT
EC
21
EC
EC
FE
2/,60$1'1
FE
HDVHGDSSHWLWH
DVHGDS
FE
EF
EFF
6&8/26.(
EF
RPPRQ
FF
$UWKUDOJLD
$UWKUDOJLD
EF
0XVFOHV
0XVFOHV
E
D
0\DOJL
DOJL
D E
D 
D 
D
5
D


6

3DJH

9HUVLRQ'DWH

$QLPDO'DWD'HFUHDVHLQUHGEORRGFHOOV5%&GHFUHDVHLQKHPRJORELQ
DQGKHPDWRFULWLQFUHDVHLQSODWHOHWVDQGILEULQRJHQGHFUHDVHLQVHUXP
DOEXPLQ DQG WRWDO SURWHLQ WUDQVLHQW LQFUHDVH LQ QHXWURSKLO FRXQW VPDOO
LQFUHDVHLQO\PSKRF\WHVPRQRF\WHVDQGHRVLQRSKLOVZKLFKZHUHGRVH
UHODWHG LQFUHDVH LQ DFWLYDWHG SDUWLDO WKURPERSODVWLQ WLPH $377
LQFUHDVHLQFLGHQFHRIFDUGLRP\RSDWK\DQGPXVFXORVNHOHWDOHYHQWV


3UHJQDQF\DQG/DFWDWLRQ7KHULVNVRI3(*3+WRDQXQERUQ
IHWXV DUH QRW NQRZQ 7KHUH KDYH EHHQ QR DQLPDO VWXGLHV WR WHVW IRU
UHSURGXFWLYHDQGGHYHORSPHQWDOWR[LFLW\ZLWK3(*3+,WLVQRWNQRZQ
ZKHWKHU3(*3+LVH[FUHWHGLQEUHDVWPLONWKHUHIRUHZRPHQZKRDUH
EUHDVWIHHGLQJVKRXOGQRWUHFHLYH3(*3+

'UXJ ,QWHUDFWLRQV 1R SKDUPDFRNLQHWLF GUXJ LQWHUDFWLRQ VWXGLHV KDYH
EHHQFRQGXFWHGZLWK3(*3+
G
'26,1*	$'0,1,675$7,21


'RVLQJ±6HH6HFWLRQ7UHDWPHQW3ODQ'RVHUHFDOFXODWLRQEDVHGRQ
ZHLJKW FKDQJH PXVW EH GRQH LI WKH SDWLHQW H[SHULHQFHV  RU PRUH
ZHLJKWJDLQRUZHLJKWORVVIURPWKHODVWGRVLQJZHLJKW

3(*+ LV DGPLQLVWHUHG LQWUDYHQRXVO\ DV DQ ,9 LQMHFWLRQ RYHU 
PLQXWHVP/PLQ

H
35(3$5$7,216725$*(	67$%,/,7<


3(*3+KLVWLGLQHIRUPXODWLRQIUR]HQSUHSDUDWLRQ

I
3UHSDUDWLRQ3(*3+LVDYDLODEOHDVPJP/PFJP/VROXWLRQLQ
P/DQGP/YLDOV1RPRUHWKDQ21(YLDORI3(*3+LVUHTXLUHGSHUGRVH
5HPRYHWKHYLDOIURPWKHIUHH]HUDQGDOORZWRWKDZDWURRPWHPSHUDWXUHIRU
PLQXWHV2QFHWKDZHG3(*3+VKRXOGEHJHQWO\LQYHUWHGWLPHVWRPL[
FRQWHQWV 7KH LQWDFW WKDZHG VROXWLRQ LV VWDEOH LQ WKH UHIULJHUDWRU IRU XS WR 
KRXUV3(*3+LVGLVSHQVHGLQDILQDOYROXPHRIP/DQGFRPSRXQGHGLQ
WZRVHSDUDWHGLOXWLRQV

)LUVW
'LOXWLRQ

7R
D

P/
HPSW\
JODVV
YLDO
DGG
D
P/RI3(*3+PFJZLWKDP/V\ULQJH

E
P/RIVRGLXPFKORULGHZLWKDP/V\ULQJH

0L[ZHOOE\LQYHUWLQJWKHYLDOJHQWO\RQHRUWZRWLPHV/DEHOWKH
YLDODV³'LOXWLRQ´ZLWKDFRQFHQWUDWLRQRI³PFJP/´


6HFRQG'LOXWLRQ'RVLQJZLOOEHSUHVFULEHGRQDPFJNJEDVLV&DOFXODWH
WKHGRVHDQGYROXPHEDVHGRQWKHDERYHFRQFHQWUDWLRQRIPFJP/
RI3(*3+QHHGHGIRUWKHSDWLHQWSOXVRYHUDJH
D
&DOFXODWHWKHGRVHYROXPHWRGLOXWHWRDWRWDOYROXPHRIP/

'RVHOHYHOPFJ[SDWLHQWZHLJKWNJ[ BBBBBBBBBBP/
PFJP/'LOXWLRQ
E
&DOFXODWHWKHGLOXHQW6RGLXPFKORULGHYROXPH

P/±GRVHYROXPHIURPP/ 
BBBBBBBP/6RGLXP&KORULGH
CLOSED EFFECTIVE 07/01/2017
QERUQ
ERU
WHVW IRU
W IRU
QRWNQRZQ
RWNQRZ
PHQZKRDUH
PHQZKRD
DFWLRQ VWXGLHV
FWLRQ VWXGLHV
DQ'RVHUHFD
Q'RVHUH
SDWLHQW H[SHU
SDWLHQW H[SHU
ODVWG
WGRVLQJZH
RVLQJZH
WUDYHQRXVO\ D
UDYHQR
67$%,/,7<
67$%,/,7
HIRUPXODWLRQ
HIRUPXODWLR
LVDYDLODEOH
LVDYDLODEOH
V1RPRUHWK
V1RPRUH
IURPWKHIUHH
IURPWKHIUHH
2QFHWKDZHG
2QFHWKDZHG
KH LQWDFW WKDZ
KH LQWDFW WKD
3(*3+LVG
3(*3+LVG
SDUDWHGLOXWLRQ
SDUDWHGLOXW
)LUVW
)LUVW
EF
D
D


6

3DJH

9HUVLRQ'DWH
F
$GGWKHGLOXHQWYROXPHVRGLXPFKORULGHFDOFXODWHGLQE
WRDQHPSW\P/JODVVYLDO

G
5HPRYHWKHGRVHYROXPHFDOFXODWHGLQDIURP³'LOXWLRQ´YLDO
DQGDGGWRWKHGLOXHQWLQWKHP/JODVVYLDO

H
0L[WKHVROXWLRQZHOOE\LQYHUWLQJWKHYLDOVORZO\WLPHV/DEHO
WKHYLDODV³)LQDO'LOXWLRQ´ZLWK³3DWLHQW,'´DQG³,QLWLDOV´

I
:LWKGUDZP/RIWKH)LQDO'LOXWLRQLQWRDV\ULQJHIRULQMHFWLRQ
/DEHODFFRUGLQJWRLQVWLWXWLRQJXLGHOLQHV

















3(*3+VXFFLQLFDFLGUHIULJHUDWHGSUHSDUDWLRQ

D
3UHSDUDWLRQ3(*3+LVDYDLODEOHDVPJP/PFJP/
VROXWLRQ LQP/YLDOV5HPRYHWKHYLDOIURPWKHUHIULJHUDWRU
DQGDOORZWKHYLDOWRUHDFKURRPWHPSHUDWXUHIRUDSSUR[LPDWHO\
 PLQXWHV 2QFH DW URRP WHPSHUDWXUH 3(*3+ VKRXOG EH
JHQWO\LQYHUWHGWLPHVWRPL[FRQWHQWV7KHYLDORI3(*3+
PXVW EH XVHG ZLWKLQ  KRXUV RI EHLQJ SODFHG DW URRP
WHPSHUDWXUH7KHLQWDFWVROXWLRQLVVWDEOHLQWKHUHIULJHUDWRUIRU
XSWRKRXUV7KHGLOXWHG3(*3+LVGLVSHQVHGLQDILQDO
YROXPHRIP/

$FDOFXODWHGDPRXQWRI3(*3+ZLOOEHDGGHGWRDQHPSW\JODVVYLDO
HJ  P/ YLDO DQG EURXJKW XS WR D WRWDO YROXPH RI P/V ZLWK
QRUPDOVDOLQHRYHUDJH

D
7RFDOFXODWHYROXPHWDNHQIURP3(*3+YLDO

'RVHOHYHOPFJ;SDWLHQWZHLJKWNJ; 
PFJPOFRQFHQWUDWLRQRI3(*3+



:KLOH H[DFW PHDVXUHPHQWV DUH GHVLUDEOH URXQGLQJ WR WKH
QHDUHVWP/LVDFFHSWDEOH+RZHYHUWKHDFWXDOGRVHPXVW
EH FDSWXUHG LQ WKH H&5) DQG WKH URXQGLQJ VKRXOG EH
DFFRXQWHGIRUWKHILQDOGRVH

([DPSOH
'RVHOHYHOPFJNJ
3DWLHQWZHLJKWNJ

'RVHYROXPH
PFJ[NJ[ P/
PFJP/

'LOXHQW6RGLXPFKORULGHYROXPH

P/±P/ P/
CLOSED EFFECTIVE
FLQLFDFLGUHIUL
FLQLFDFLGU
3UHSDUDWLRQ
3UHSDUDWLRQ3
3
EC
VROXWLRQ LQ
VROXWLRQ LQ
DQGDOORZ
DQGDOOR
 PL
 P
JHQ
J


TIVE 07/01/2017
/DEHO
DEH
IRULQMHFWLRQ
IRULQMHFWLR
/2
[
[
6RGLXPFKOR
6RGLX
P/ 
P/ 


6

3DJH

9HUVLRQ'DWH
E
0L[WKHVROXWLRQZHOOE\LQYHUWLQJWKHYLDOVORZO\WLPHV/DEHO
YLDODVILQDOGRVHZLWK3DWLHQW,'DQGLQLWLDOV

F
'UDZ  P/V IURP WKH GLOXWLRQ YLDO LQWR D  P/ V\ULQJH IRU
LQMHFWLRQ LQWR WKH SDWLHQW /DEHO WKH V\ULQJH DFFRUGLQJ WR
LQVWLWXWLRQDOJXLGHOLQHV


















6WDELOLW\ 7KH ILQDO GLOXWLRQ RI 3(*3+ PXVW EH XVHG
ZLWKLQKRXUVDIWHUSUHSDUDWLRQ2QFHSODFHGDWURRP
WHPSHUDWXUHWKHYLDOPXVWEHXVHGZLWKLQKRXUV$IWHU
UHDFKLQJURRPWHPSHUDWXUHWKHYLDOFDQQRWEHUHIUR]HQ
RUUHUHIULJHUDWHGIRUIXWXUHXVH

&RPSDWLELOLW\ 7KH LQIXVLRQ OLQH PD\ EH IOXVKHG ZLWK
VRGLXPFKORULGHEHIRUHDQG DIWHUWKH,9 LQMHFWLRQ
$GGLWLRQDOFRPSDWLELOLW\LQIRUPDWLRQLVQRWDYDLODEOH
G
6WRUDJH3(*3+KLVWLGLQHIRUPXODWLRQVKRXOGEHVWRUHGDWRU
EHORZ & SULRU WR XVH 3(*3+ VXFFLQLF DFLG IRUPXODWLRQ
VKRXOGEHVWRUHGDW&SULRUWRXVH

J
+2:6833/,('



3(*3+,66833/,(',1)2506

3(*3+ IRUPXODWLRQ
9LDOYROXPH
)LQDOFRQFHQWUDWLRQ
+LVWLGLQH
IUR]HQ
PO
PJP/
6XFFLQLFDFLG
UHIULJHUDWHG
PO
PJPO
CLOSED EFFECTIVE 
7KH ILQDO GLO
7KH ILQDO GL
KRXUVDIWH
KRXUVD
PSHUDWXUHWKH
SHUDWXUHWKH
HDFKLQJURRP
DFKLQJURRP
RUUH
RUU UHIULJHU
HIULJ
&RPSD
&RPS
EC

 
$G
$
G
G
6WRU
6
+2:68
+2:68

2017
R


6

3DJH

9HUVLRQ'DWH
D
7KH3(*3+GUXJSURGXFWKLVWLGLQHIRUPXODWLRQLVVXSSOLHGDV
D IUR]HQ VWHULOH VLQJOHXVH LQMHFWDEOH OLTXLG 3(*3+ GUXJ
SURGXFW FOLQLFDO WHVW DUWLFOH LV DQ DTXHRXV VROXWLRQ FRQWDLQLQJ
PJP/3(*3+ZLWKP0+LVWLGLQHP01D&ODWD
S+RI(DFKYLDOFRQWDLQVP/PJRUP/PJ
RI 3(*3+ GUXJ SURGXFW 3(*3+ GUXJ SURGXFW DUH
SDFNDJHGLQFOHDU7\SH,P/JODVVYLDOV

E
7KH3(*3+GUXJSURGXFWVXFFLQLFDFLGIRUPXODWLRQLVVXSSOLHG
DVDUHIULJHUDWHGVWHULOHVLQJOHXVHLQMHFWDEOHOLTXLG3(*3+
GUXJ SURGXFW FOLQLFDO WHVW DUWLFOH LV DQ DTXHRXV VROXWLRQ
FRQWDLQLQJ
PJP/
3(*3+
ZLWK

P0
VXFFLQLF
DFLG1D2+P01D&ODQGP0/0HWKLRQLQHDWDS+RI
 (DFK YLDO FRQWDLQV  P/  PJ RI 3(*3+ GUXJ
SURGXFW3(*3+GUXJSURGXFWLVSDFNDJHGLQFOHDU7\SH,
P/JODVVYLDOV


3(*3+ LV DQ LQYHVWLJDWLRQDO DJHQW VXSSOLHG WR LQYHVWLJDWRUV E\
%LRORJLFV,QFIURP+DOR]\PH,QF


'UXJRUGHULQJDQGVKLSSLQJ

D
3(*3+ PD\ EH UHTXHVWHG E\ WKH 3ULQFLSDO ,QYHVWLJDWRU RU
WKHLU DXWKRUL]HG GHVLJQHH E\ FRPSOHWLQJ DQG ID[LQJ WKH
%LRORJLFV 'UXJ 5HTXHVW IRUP IRU 6  7KH IRUP VKRXOG EH
ID[HG WR WKH QXPEHU OLVWHG RQ WKH RUGHU IRUP  $XWKRUL]HG DQG
FRPSOHWHGRUGHUVZLOOEHSURFHVVHGDQGVKLSSHG³VDPHGD\´RI
UHFHLSW LI UHFHLYHG EHIRUH  SP (67 7XHVGD\ WKURXJK
7KXUVGD\$XWKRUL]HGDQGFRPSOHWHGRUGHUVUHFHLYHGDIWHU
SP (67 7XHVGD\ WKURXJK 7KXUVGD\ DQG RQ )ULGD\ RU 0RQGD\
ZLOO EH SURFHVVHG DQG VKLSSHG WKH QH[W EXVLQHVV PRUQLQJ
3DFNDJHV DUH WUDFNHG XQWLO FRQILUPHG GHOLYHUHG DQG GHOLYHU\
H[FHSWLRQV DUH PDQDJHG ZLWK WKH KLJKHVW OHYHO RI XUJHQF\ WR
HQVXUH WKHUDS\ VWDUW GDWH DGKHUHQFH  3DFNLQJ VOLSV ZLWK WKH
VKLSPHQW WUDFNLQJ QXPEHU LQFOXGHG ZLOO EH ID[HG WR WKH
GHVLJQDWHGVLWHFRRUGLQDWRUIRUDOOVKLSPHQWV %LRORJLFV ZLOOEH
FORVHG IRU WKH IROORZLQJ KROLGD\V 1HZ <HDU¶V 'D\ 0HPRULDO
'D\ ,QGHSHQGHQFH 'D\ /DERU 'D\ 7KDQNVJLYLQJ 'D\
7KDQNVJLYLQJ)ULGD\&KULVWPDV(YHDQG&KULVWPDV'D\
E
2QFHDSDWLHQWLVUHJLVWHUHGWKHVLWHZLOOID[DFRPSOHWHG'UXJ
5HTXHVW IRUP WR %LRORJLFV DW   8SRQ UHFHLSW RI
ID[HG'UXJ5HTXHVWIRUP%LRORJLFVZLOO


3ODFH D FDOO RU HPDLO WR WKH VLWH FRQILUPLQJ WKH 'UXJ
5HTXHVW IRUP ZDV UHFHLYHG ZKLOH SURYLGLQJ WKH
HVWLPDWHGGD\DQGWLPHRIDUULYDORIWKHVWXG\GUXJ


%LRORJLFVZLOOVKLSWKHUHTXHVWHGTXDQWLW\RIYLDOVIRUWKH
SDWLHQW
WR
FRPSOHWH
WKHLU
F\FOHV
RI
3(*3+
$SSUR[LPDWHO\  GD\V LQWR WKH ILUVW WKLUG VHYHQWK
HOHYHQWKDQGWKF\FOH%LRORJLFVZLOOSODFHDFDOOWRWKH
VWXG\VLWHWRDUUDQJHIRUWKHQH[WVKLSPHQWRIVWXG\GUXJ
IRUWKHVXEVHTXHQWF\FOH,IWKHSDWLHQWUHTXLUHV GRVLQJ
CLOSED EFFECTIVE 07/01/2017
H
H
LVVXSSOLHG
VXSSOL
LG3(*3+
G3(*3+
TXHRXV VROXWL
XHRXV VROXWL

P0

P
VXF
VXF
0HWKLRQLQHDW
WKLRQLQHDW
PJ RI 3(*3
PJ RI 3(*3
DFNDJHGLQFOH
FNDJHGLQFOH
HQW VXSSOLHG
HQW VXSSOLHG
EH UHTXHVWHG
EH UHTXHVWHG
]HG GHVLJQHH
]HG GHVLJQ
'UXJ 5HTXHVW
'UXJ 5HTXHVW
WKH QXPEHU
KH QXPEHU
HWHGRUGHUVZ
HWHGRUGHUV
HLSW LI UHFHLY
HLSW LI UHF
7KXUVGD\$XW
7KXUVGD\$XW
SP (67
SP (67 7X
ZLOO EH S
ZLOO EH S
3DFNDJ
3DFND
H[FH
H[
H


6

3DJH

9HUVLRQ'DWH
SDVW  F\FOHV WKH VLWH ZLOO EH FRQWDFWHG  GD\V LQWR
HDFKRGGQXPEHUHGF\FOHLHHWFWRSODQ
IRUWKHQH[WVKLSPHQW6KLSPHQWVDIWHUF\FOHZLOOEH
YLDOVHDFKHQRXJKIRUF\FOHV


$OOVWXG\GUXJZLOOEHVKLSSHGLQRULJLQDOPDQXIDFWXUHUV
SDFNDJLQJ ZLWK D SURWRFROVSHFLILF ODEHO DGKHUHG WR WKH
RXWHUSDFNDJLQJ%LRORJLFVZLOOSODFHWKHPDQXIDFWXUHU¶V
SDFNDJLQJ LQ D =LSORF EDJ  (DFK VKLSPHQW LQFOXGHV D
SURWRFRO ODEHO RQ WKH UHVHDODEOH EDJ ZLWK WKH IROORZLQJ
LQIRUPDWLRQ

x
7KH6WXG\1XPEHULH6:2*6
x
,1'FDXWLRQVWDWHPHQWDQGRUORFDOUHJXODWRU\
VWDWHPHQWV
x
'UXJLGHQWLILFDWLRQ
x
/RWQXPEHUDQG([SLUDWLRQ
x
'RVLQJLQVWUXFWLRQV$GPLQLVWHUDVGLUHFWHGSHU3URWRFRO
x
6WRUDJHLQVWUXFWLRQV
x
(PHUJHQF\FRQWDFWLQVWUXFWLRQV


(DFKVKLSPHQWLVGHOLYHUHGLQDSUHFRQGLWLRQHG&RU
FROGHU VKLSSLQJ VROXWLRQ TXDOLILHG DW  KRXUV DQG D
7DJ$OHUW PRQLWRULQJ V\VWHP WR HQVXUH WHPSHUDWXUH
PDLQWHQDQFH GXULQJ WUDQVLW  $W UHFHLSW HDFK VLWH ZLOO
UHYLHZWKHPRQLWRUWRFRQILUPWHPSHUDWXUHVWDELOLW\


2QFHVWXG\GUXJLVUHFHLYHGDWWKHFOLQLFDOWULDOVLWHWKH
GHVLJQDWHG VLWH FRRUGLQDWRU YDOLGDWHV WKH FRQWHQWV RI
SDFNDJH DQG PDWFKHV WKH LQIRUPDWLRQ SURYLGHG RQ
SDFNLQJ VOLS VLJQV RII RQ WKH SDFNLQJ VOLS DQG ID[HV
FRPSOHWHG IRUP WR %LRORJLFV WR YDOLGDWH VKLSPHQW KDV
EHHQUHFHLYHGDQGLVDFFXUDWH

F
$OO GUXJ RUGHUV DUH VKLSSHG YLD )HG([ IRU 3ULRULW\ 2YHUQLJKW
GHOLYHU\IRUVKLSPHQWVWR86VLWHV

7KH %LRORJLFV GLVWULEXWLRQ WHDP PRQLWRUV SDFNDJHV WKURXJKRXW
GXUDWLRQ RI WUDQVLW YLD )HG ([ ZHEVLWH DQG )HG([ 2QH &DOO
6ROXWLRQ OLYH VXSSRUW 5HDOWLPH PRQLWRULQJ HQDEOHV WKH
%LRORJLFV GLVWULEXWLRQ WHDP WR PLWLJDWH SRWHQWLDO GHOLYHU\ GHOD\V
HJPLVURXWHGSDFNDJHV

,QWKHHYHQWDSDFNDJHFDQQRWEHGHOLYHUHGZLWKLQWKHKRXU
WLPH SHULRG LH GXH WR VHYHUH ZHDWKHU %LRORJLFV¶ GLVWULEXWLRQ
WHDP ZRUNV SURDFWLYHO\ ZLWK )HG ([ 2QH&DOO FRQILUPLQJ WKH
H[DFWORFDWLRQRIWKHSDFNDJHDQGSURYLGLQJLQVWUXFWLRQWR)HG([
WRUHWXUQWKHSDFNDJHWR%LRORJLFV8SRQQRWLILFDWLRQRIDGHOD\HG
VKLSPHQW D UHSODFHPHQW VKLSPHQW ZLOO EH VHQW WR WKH VLWH DV
DXWKRUL]HG 6LWHV DUH DOVR DOHUWHG ³VDPH GD\´ WR DQ\ GHOD\V LQ
GHOLYHU\ DQGSURYLGHGHVWLPDWHGWLPHIRUDUULYDORIUHSODFHPHQW
SDFNDJH  $OO GHOLYHU\ H[FHSWLRQV ZLOO EH UHSRUWHG YLD
$FFRXQWDELOLW\5HSRUWLQJ

CLOSED EFFECTIVE 07/01/2017
V
WKH
KH
XUHU¶V
UHU¶
FOXGHV D
FOXGHV D
H IR
IROORZLQJ
OORZL

1
UHJXODWRU\
JXODWRU\
PLQLVWHUDVGLUH
QLVWHUDVG
LQVWUXFWLRQV
VWUXFWLRQV
WLVGHOLYHUHG
WLVGHO
SLQJ VROXWLRQ
LQJ VROXWLR
PRQLWRULQJ
RQLWRULQJ
QDQFH GXULQJ
QDQFH GXULQJ
ZWKHPRQLWRU
ZWKHPRQLWR
2QFHVWXG\G
2QFHVWXG
GHVLJQDWHG
GHVLJQDWHG
SDFNDJH
SDFND
SDFNL
SDFNL
FRP
FR
E
FF
$O
$


6

3DJH

9HUVLRQ'DWH
G
'UXJ+DQGOLQJDQG$FFRXQWDELOLW\

H
'UXJ $FFRXQWDELOLW\ 7KH LQYHVWLJDWRU RU D UHVSRQVLEOH SDUW\
GHVLJQDWHGE\WKHLQYHVWLJDWRUPXVWPDLQWDLQDFDUHIXOUHFRUGRI
WKH UHFHLSW GLVSRVLWLRQ DQG UHWXUQ RU GLVSRVDO RI DOO GUXJV
UHFHLYHG IURP WKH VXSSOLHU XVLQJ WKH 1&, 'UXJ $FFRXQWDELOLW\
5HFRUG)RUP'$5)DYDLODEOHDWKWWSFWHSFDQFHUJRY

4XHVWLRQVDERXWGUXJRUGHUVWUDQVIHUVUHWXUQVRUDFFRXQWDELOLW\
VKRXOGEHDGGUHVVHGWR.DUO%XHUDW%LRORJLFV,QFDW
RUNEXHU#ELRORJLFVLQFFRP

I
(OHFWURQLFORJVDUHDOORZHGDVORQJDVDSULQWYHUVLRQRIWKHORJ
SURFHVVLVWKHH[DFWVDPHDSSHDUDQFHDVWKHFXUUHQW1&,'$5)


'UXJUHWXUQDQGRUGLVSRVLWLRQLQVWUXFWLRQ

D
'UXJ5HWXUQ$WWKHFRQFOXVLRQRIWKHVWXG\UHPDLQLQJLQYHQWRU\
LVGRFXPHQWHGLQWKHDFFRXQWDELOLW\UHFRUGVDQGXQXVHGGUXJZLOO
EH GHVWUR\HG SHU ORFDO LQVWLWXWLRQDO JXLGHOLQHV $ GUXJ
UHWXUQGHVWUXFWLRQIRUPZLOOEHLQFOXGHGZLWKHDFKVKLSPHQWDQG
PXVWEHUHWXUQHGWR%LRORJLFV,QFRQFHDOOSDWLHQWVDUHRIIVWXG\
GUXJDQGGUXJKDVEHHQGHVWUR\HG
6LWHVPD\XVHYLDOVRQKDQGIRUPXOWLSOHSDWLHQWVHQUROOHGWRWKH
VWXG\
E
'LVSRVLWLRQ8VHGYLDOVVKRXOGEHGLVSRVHGRILQDFFRUGDQFHZLWK
LQVWLWXWLRQSROLFLHV
F
'UXJH[SLUDWLRQ6WDELOLW\HYDOXDWLRQLVRQJRLQJ7KHVXSSOLHUZLOO
PRQLWRU GUXJ VWDELOLW\ DQG SURYLGH H[SLUDWLRQ XSGDWHV RQ DQ
RQJRLQJEDVLV

4XHVWLRQVDERXWGUXJRUGHUVWUDQVIHUVUHWXUQVRUDFFRXQWDELOLW\VKRXOG
EHDGGUHVVHGWR&OLQLFDO5HVHDUFK6HUYLFHVDW%LRORJLFV,QFDW
RU&OLQLFDOWULDOV#ELRORJLFVLQFFRP



67$*,1*&5,7(5,$

6WDJLQJFULWHULDDUHQRWDSSOLFDEOHWRWKLVVWXG\



(/,*,%,/,7<&5,7(5,$

(DFKRIWKHFULWHULDLQWKHIROORZLQJVHFWLRQPXVWEHPHWLQRUGHUIRUDSDWLHQWWREHFRQVLGHUHGHOLJLEOHIRU
UHJLVWUDWLRQ8VHWKHVSDFHVSURYLGHGWRFRQILUPDSDWLHQW
VHOLJLELOLW\)RUHDFKFULWHULRQUHTXLULQJWHVW
UHVXOWVDQGGDWHVSOHDVHUHFRUGWKLVLQIRUPDWLRQRQWKH2QVWXG\)RUPDQGVXEPLWYLD0HGLGDWD5DYH
VHH6HFWLRQ$Q\SRWHQWLDOHOLJLELOLW\LVVXHVVKRXOGEHDGGUHVVHGWRWKH'DWD2SHUDWLRQV&HQWHULQ
6HDWWOHDWSULRUWRUHJLVWUDWLRQ

,QFDOFXODWLQJGD\VRIWHVWVDQGPHDVXUHPHQWVWKHGD\DWHVWRUPHDVXUHPHQWLVGRQHLVFRQVLGHUHG'D\
7KHUHIRUHLIDWHVWLVGRQHRQD0RQGD\WKH0RQGD\ZHHNVODWHUZRXOGEHFRQVLGHUHG'D\7KLV
DOORZV IRU HIILFLHQW SDWLHQW VFKHGXOLQJ ZLWKRXW H[FHHGLQJ WKH JXLGHOLQHV  ,I 'D\  RU  IDOOV RQ D
ZHHNHQGRUKROLGD\WKHOLPLWPD\EHH[WHQGHGWRWKHQH[WZRUNLQJGD\
CLOSED EFFECTIVE 07/01/2017
V
LOLW\
W\
FFRXQWDELOLW\
XQWDELO
FDW
DW

SULQWYHUVLRQR
SULQWYHUVLRQ
DVWKHFXUUHQW
VWKHFXUUHQ
RQRIWKHVWXG
QRIWKHVWX
XQWDELOLW\UHFR
DELOLW\UH
RFDO LQVWLWXWLR
RFDO LQVWLWXWLR
PZLOOEHLQFOX
PZLOOEH
R%LRORJLFV,QF
%LRORJLFV,Q
DVEHHQGHVWUR
DVEHHQGHVWUR
XVHYLDOVRQK
XVHYLDOVRQK
SRVLWLRQ
VLW
8VHG
8VHG
CT
VWLWXWLRQSROLFL
VWLWXWLRQSROLF
'UXJH[SLU
'UXJH[SL
FE
PR
P QLWRU
QLWRU
RQJRL
4XHVWLRQ
4XH
EHDGG
EH DG


1*&5,7(5,$
1*&5,7(5
WDJLQJFULWHULD
WDJLQJFULWHULD
(/,*,%,
(/,*,%,
(DFKRIWKH
KRIWKH
UHJLVWUDWL
UHJLVWUD
UHVXOWV
UHVXOWV
VHH
VHH
6


6

3DJH

9HUVLRQ'DWH

'LVHDVH5HODWHG&ULWHULD

D
3DWLHQWV PXVW KDYH QHZO\ GLDJQRVHG XQWUHDWHG PHWDVWDWLF KLVWRORJLFDOO\ RU
F\WRORJLFDOO\ GRFXPHQWHG SDQFUHDWLF DGHQRFDUFLQRPD 3DWLHQWV PXVW QRW KDYH
NQRZQKLVWRU\RIEUDLQPHWDVWDVHV

E
3DWLHQWVPXVWKDYHPHDVXUDEOHPHWDVWDWLFGLVHDVHDVGHILQHGLQ6HFWLRQ
&7 VFDQV RU 05,V XVHG WR DVVHVV PHDVXUDEOH GLVHDVH PXVW KDYH EHHQ
FRPSOHWHGZLWKLQGD\VSULRUWRUHJLVWUDWLRQ&7VFDQVRU05,VXVHGWRDVVHVV
QRQPHDVXUDEOH GLVHDVH PXVW KDYH EHHQ FRPSOHWHG ZLWKLQ  GD\V SULRU WR
UHJLVWUDWLRQ  &7 VFDQV RU 05,V PXVW EH DVVHVVHG DQG GRFXPHQWHG RQ WKH
%DVHOLQH7XPRU$VVHVVPHQW)RUP5(&,67
F
3DWLHQWV PXVW QRW KDYH KDG DQ\ SULRU WUHDWPHQW ZLWK R[DOLSODWLQ RU LULQRWHFDQ
ZLWKLQ  \HDUV SULRU WR UHJLVWUDWLRQ 3DWLHQWV PXVW QRW KDYH KDG SULRU
FKHPRWKHUDS\ LQ PHWDVWDWLF VHWWLQJ 3ULRU DEGRPLQDO UDGLDWLRQ WKHUDS\ LV QRW
DOORZHG


&OLQLFDO/DERUDWRU\&ULWHULD

D
3DWLHQWVPXVWKDYHD=XEURG3HUIRUPDQFH6WDWXVRI6HH6HFWLRQ
3DWLHQWVPXVWEHDQG\HDUVRIDJH

F
3DWLHQWV PXVW KDYH DGHTXDWH KHPDWRORJLF IXQFWLRQ DV HYLGHQFHG E\ DOO RI WKH
IROORZLQJ ZLWKLQ  GD\V SULRU WR UHJLVWUDWLRQ $1&  PF/ SODWHOHWV 
PF/DQGKHPRJORELQJG/

G
3DWLHQWVPXVWKDYHDGHTXDWHKHSDWLFIXQFWLRQDVHYLGHQFHGE\DOORIWKHIROORZLQJ
ZLWKLQ  GD\V SULRU WR UHJLVWUDWLRQ WRWDO ELOLUXELQ  ,QVWLWXWLRQDO 8SSHU /LPLW RI
1RUPDO ,8/1 $67 DQG $/7 ERWK   ; ,8/1 LQ WKH DEVHQFH RI OLYHU
PHWDVWDVLVRU[,8/1ZLWKOLYHUPHWDVWDVLVDQGVHUXPDOEXPLQJG/

H
3DWLHQWVPXVWKDYHDGHTXDWHNLGQH\IXQFWLRQDVHYLGHQFHGE\DWOHDVW21(RI
WKHIROORZLQJ

x
6HUXPFUHDWLQLQH8/1ZLWKLQGD\VSULRUWRUHJLVWUDWLRQ25
x
&DOFXODWHGFUHDWLQLQHFOHDUDQFH!POPLQ7KHVHUXPFUHDWLQLQHYDOXH
XVHGLQWKHFDOFXODWLRQPXVWKDYHEHHQREWDLQHGZLWKLQGD\VSULRUWR
UHJLVWUDWLRQ

&DOFXODWHGFUHDWLQLQHFOHDUDQFH ±DJH[ZWNJ[>LIIHPDOH@
[FUHDWLQLQHPJG/


I
3DWLHQWVPXVWKDYH,15ZLWKLQGD\VSULRUWRUHJLVWUDWLRQ3DWLHQWVPXVW
QRW EH UHFHLYLQJ ZDUIDULQ IRU WKHUDSHXWLF XVH KDYH KLVWRU\ RI FHUHEURYDVFXODU
DFFLGHQW&9$KLVWRU\RIWUDQVLHQWLVFKHPLFDWWDFN7,$UHTXLULQJLQWHUYHQWLRQRU
WUHDWPHQWSUHH[LVWLQJFDURWLGDUWHU\GLVHDVHUHTXLULQJLQWHUYHQWLRQRUWUHDWPHQW
RUFXUUHQWXVHRIPHJHVWURODFHWDWHXVHZLWKLQGD\VRIUHJLVWUDWLRQ

J
3DWLHQWVPXVWQRWEHUHFHLYLQJFKURQLFWUHDWPHQWHTXLYDOHQWRISUHGQLVRQH!
PJGD\ZLWKV\VWHPLFVWHURLGVRURWKHULPPXQRVXSSUHVVLYHDJHQW

K
3DWLHQWVPXVWQRWKDYHOLYHUGLVHDVHVXFKDFLUUKRVLVFKURQLFDFWLYHKHSDWLWLVRU
FKURQLFSHUVLVWHQWKHSDWLWLV

L
3DWLHQWV PXVW QRW KDYH DFWLYH EOHHGLQJ RU D SDWKRORJLFDO FRQGLWLRQ WKDW LV
DVVRFLDWHGZLWKDKLJKULVNRIEOHHGLQJ
CLOSED EFFECTIVE 07/01/2017


17
H EHHQ
EHHQ
WRDVVHVV
RDVVH
GD\V SULRU WR
GD\V SULRU
PHQWHG RQ WK
PHQWHG RQ WK
[DOLSODWLQ RU L
SODWLQ RU
VW QRW KDYH
QRW KDYH
DO UDGLDWLRQ W
UDGLDWLRQ
H6WDWXVRI
H6WDWXVRI
KHPDWRORJLF I
KHPDWRORJLF
ULRU WR UHJLVWU
ULRU WR UHJLVW
RELQ
RELQ JG/
JG
GHTXDWHKHSDW
HTXDWHKHSD
RU WR UHJLVWUDW
RU WR UHJLVW
$67
$67 DQG $/
DQG $
[,8/1Z
[,8/1
PXVWKDYHDG
PXVWKDYHDG
RZLQJ
RZLQJ
6HUXPF
6HUX
x
&DOFX
DOFX
XVH
XV
&DO
&D
II


6

3DJH

9HUVLRQ'DWH
M
3DWLHQWVZLWKDNQRZQKLVWRU\RI+,9PXVWQRWEHRQDFWLYHWUHDWPHQWIRU+,9

N
3DWLHQWVPXVWKDYHQRQRQPDOLJQDQWPHGLFDOLOOQHVVHVWKDWDUHXQFRQWUROOHGRU
ZKRVHFRQWUROPD\EHMHRSDUGL]HGE\WKHWUHDWPHQWZLWKSURWRFROWKHUDS\

O
1RRWKHUSULRUPDOLJQDQF\LVDOORZHGH[FHSWIRUWKHIROORZLQJDGHTXDWHO\WUHDWHG
EDVDO FHOO RU VTXDPRXV FHOO VNLQ FDQFHU LQ VLWX FHUYLFDO FDQFHU DGHTXDWHO\
WUHDWHG 6WDJH , RU ,, FDQFHU IURP ZKLFK WKH SDWLHQW LV FXUUHQWO\ LQ FRPSOHWH
UHPLVVLRQRUDQ\RWKHUFDQFHUIURPZKLFKWKHSDWLHQWKDVEHHQGLVHDVHIUHHIRU
ILYH\HDUV



P
3DWLHQWV PXVW QRW EH SUHJQDQW RU QXUVLQJ GXH WR ULVN RI IHWDO RU QXUVLQJ LQIDQW
KDUP :RPHQPHQ RI UHSURGXFWLYH SRWHQWLDO PXVW KDYH DJUHHG WR XVH DQ
HIIHFWLYH FRQWUDFHSWLYH PHWKRG $ ZRPDQ LV FRQVLGHUHG WR EH RI ³UHSURGXFWLYH
SRWHQWLDO´ LI VKH KDV KDG PHQVHV DW DQ\ WLPH LQ WKH SUHFHGLQJ  FRQVHFXWLYH
PRQWKV ,Q DGGLWLRQ WR URXWLQH FRQWUDFHSWLYH PHWKRGV ³HIIHFWLYH FRQWUDFHSWLRQ´
DOVRLQFOXGHVKHWHURVH[XDOFHOLEDF\DQGVXUJHU\LQWHQGHGWRSUHYHQWSUHJQDQF\
RU ZLWK D VLGHHIIHFW RI SUHJQDQF\ SUHYHQWLRQ GHILQHG DV D K\VWHUHFWRP\
ELODWHUDO RRSKRUHFWRP\ RU ELODWHUDO WXEDO OLJDWLRQ +RZHYHU LI DW DQ\ SRLQW D
SUHYLRXVO\FHOLEDWHSDWLHQWFKRRVHVWREHFRPHKHWHURVH[XDOO\DFWLYHGXULQJWKH
WLPHSHULRGIRUXVHRIFRQWUDFHSWLYHPHDVXUHVRXWOLQHGLQWKHSURWRFROKHVKHLV
UHVSRQVLEOHIRUEHJLQQLQJFRQWUDFHSWLYHPHDVXUHV

Q
3DWLHQWVPXVWEHDEOHWRVWDUWORZPROHFXODUZHLJKWKHSDULQDVSURSK\OD[LV


6SHFLPHQ6XEPLVVLRQ&ULWHULD

D
3DWLHQWVPXVWKDYHWXPRUSDUDIILQEORFNRUVOLGHVDYDLODEOHIRUVXEPLVVLRQDQG
EHZLOOLQJWRVXEPLWWXPRUDQGEORRGVDPSOHVDVGHVFULEHGLQ6HFWLRQ

5HJXODWRU\&ULWHULD
D
3DWLHQWV RU WKHLU OHJDOO\ DXWKRUL]HGUHSUHVHQWDWLYH PXVW EH LQIRUPHG RI WKH
LQYHVWLJDWLRQDO QDWXUH RI WKLV VWXG\ DQG PXVW VLJQ DQG JLYH ZULWWHQ LQIRUPHG
FRQVHQWLQDFFRUGDQFHZLWKLQVWLWXWLRQDODQGIHGHUDOJXLGHOLQHV

E
$VDSDUWRIWKH23(1UHJLVWUDWLRQSURFHVVVHH6HFWLRQIRU23(1DFFHVV
LQVWUXFWLRQV WKH WUHDWLQJ LQVWLWXWLRQ
VLGHQWLW\ LV SURYLGHG LQ RUGHU WR HQVXUH WKDW
WKHFXUUHQWZLWKLQGD\VGDWHRILQVWLWXWLRQDOUHYLHZERDUGDSSURYDOIRUWKLV
VWXG\KDVEHHQHQWHUHGLQWKHV\VWHP
F
3DWLHQWVSODQQLQJWRHQUROOLQWKH3KDVH,SRUWLRQRIWKLVVWXG\PXVWILUVWKDYHD
VORWUHVHUYHGLQDGYDQFHRIWKHUHJLVWUDWLRQ$OOVLWHVWDIIZLOOXVH23(1WRFUHDWH
D VORW UHVHUYDWLRQ VHH 6HFWLRQ  IRU 23(1 VORW UHVHUYDWLRQ LQVWUXFWLRQV
127(3KDVH,LVFORVHGWRDFFUXDOHIIHFWLYH

675$7,),&$7,21)$&7256

3KDVH,3RUWLRQ6WUDWLILFDWLRQIDFWRUVDUHQRWDSSOLFDEOHWRWKLVSRUWLRQ

3KDVH,,3RUWLRQ3DWLHQWVZLOOEHVWUDWLILHGDFFRUGLQJWR=XEURG3HUIRUPDQFH6WDWXVYV
CLOSED EFFECTIVE 07/01/2017
WHG
HG
XDWHO\
DWHO
RPSOHWH
RPSOHWH
VHIUHHIRU
HIUHH
RU QXUVLQJ LQ
U QXUVLQJ L
DJUHHG WR X
DJUHHG WR X
WR EH RI ³UHS
WR EH RI ³UH
SUHFHGLQJ 
HFHGLQJ 
GV ³HIIHFWLYH
 ³HIIHFWLY
QWHQGHGWRSUH
QWHQGHGWRSU
Q GHILQHG D
 GHILQHG
DWLRQ +RZHY
DWLRQ +RZHY
RPHKHWHURVH
HKHWHURVH
DVXUHVRXWOLQHG
VXUHVRXWOLQH
HPHDVXUHV
HPHDV
PROHFXODUZH
HFXODUZH
PRUSDUDIILQE
PRUSDUDIIL
XPRUDQGEORR
PRUDQGEORR
U WKHLU OHJDOO\
U WKHLU OHJDOO\
DWLRQDO QDWXUH
WLRQDO QDWXUH
QWLQDFFRUGDQ
QWLQDFFRUG
$VDSDUWRIWK
VDSDUWRIW
LQVWUXFWLRQV
VWUXFWLRQV
WKHFXUUHQ
FXUUHQ
VWXG\K
VWX
FF
3D
3D

675
67


6

3DJH

9HUVLRQ'DWH


75($70(173/$1

)RUWUHDWPHQWRUGRVHPRGLILFDWLRQTXHVWLRQVSOHDVHFRQWDFW'U5DPDQDWKDQDWRU
'U3KLOLSDW)RUGRVLQJSULQFLSOHVRUTXHVWLRQVSOHDVHFRQVXOWWKH6:2*3ROLF\
'RVLQJ3ULQFLSOHVIRU3DWLHQWVRQ&OLQLFDO7ULDOVDWKWWSVZRJRUJWKHQFOLFNRQ3ROLFLHV
DQG0DQXDOVXQGHUWKH9LVLWRUVPHQXDQGFKRRVH3ROLF\


7UHDWPHQW2YHUYLHZ
7KHVWXG\ZLOOEHFRQGXFWHGLQWZRVHTXHQWLDOSDUWV$SDWLHQWPD\EHHQUROOHGWR
HLWKHUWKH3KDVH,3RUWLRQRUWKH3KDVH,,3RUWLRQEXWQRWERWK
3KDVH,3RUWLRQ±'HWDLOVDUHLQ6HFWLRQ
3KDVH,,3RUWLRQ±'HWDLOVDUHLQ6HFWLRQ

3UH0HGLFDWLRQ

$GPLQLVWUDWLRQRI3(*3+UHTXLUHVVWHURLGSUHPHGLFDWLRQSULRUWRGRVLQJDQGIRUDWRWDO
RIGD\VDIWHULHGH[DPHWKDVRQHPJELG>32RU,9@RQILUVWGD\RIGRVLQJWKHQPJ
ELG WKH  VXEVHTXHQW GD\V WR UHGXFH WKH LQFLGHQFH RI P\DOJLDV DQG DUWKUDOJLDV )RU
VXEVHTXHQW F\FOHV  PJ GH[DPHWKDVRQH ELG RQ GD\ RI 3(*3+ DGPLQLVWUDWLRQ DQG
WUHDWLQJ SK\VLFLDQ PD\ LQFUHDVH RU GHFUHDVH VXEVHTXHQW GH[DPHWKDVRQH EDVHG RQ
SDWLHQWV\PSWRPV

3(*3+  P)2/),5,12; FDQ EH FRQVLGHUHG D KLJKO\ HPHWRJHQLF UHJLPHQ
3URSK\OD[LV ZLWK DUHJLPHQLQFOXGLQJDSUHSLWDQWVWHURLGVRU DVSHU LQVWLWXWLRQDOSROLF\ LV
UHFRPPHQGHG


3KDVH,

,03257$17 127(  7KH 3KDVH , SRUWLRQ RI WKLV WULDO LV QRZ FORVHG  5DSLG
UHSRUWLQJRIGRVHOLPLWLQJWR[LFLWLHV6HFWLRQLVQRORQJHUUHTXLUHG
7KLV ZLOO EH D GRVH GHHVFDODWLRQ FOLQLFDO WULDO ZLWK WZR GRVH OHYHOV RI 3(*3+ 7KH
VWDUWLQJGRVHOHYHOIRU3(*3+LV/HYHO1RSDWLHQWVZLOOEHHQUROOHGLQWKHQH[WGRVH
OHYHO XQWLO WKH WR[LFLW\ LV IXOO\ DVVHVVHG DIWHU WKH FRPSOHWLRQ RI RQH F\FOH LQ DW OHDVW 
SDWLHQWV HQUROOHG DW WKH SUHYLRXV GRVH OHYHO 7KH PD[LPXP WROHUDWHG GRVH 07' LV
GHILQHG DV WKH KLJKHVW GRVH VWXGLHG LQ ZKLFK WKH LQFLGHQFH RI GRVHOLPLWLQJ WR[LFLWLHV
'/7LV

D
7UHDWPHQW

$JHQW
'RVH
5RXWH
'D\
6FKHGXOH

3(*3+
DVVLJQHG
,9RYHU
RU
KRXUVSULRU

GRVH
PLQ

WREHJLQQLQJ




P)2/),5,12;

2[DOLSODWLQ
PJP
,9RYHU

3ULRUWRLULQRWHFDQ


KRXUV

DQGOHXFRYRULQ

/HXFRYRULQ PJP
,9RYHU

:LWKLULQRWHFDQ


KRXUV

,ULQRWHFDQ
PJP
,9RYHU

:LWKOHXFRYRULQ
CLOSED EFFECTIVE 07/01/2017
\
LHV
HV
EHHQUROOHGW
EHHQUROOHG
GLFDWLRQSULRU
DWLRQSULRU
2RU,9@RQILUV
2RU,9@RQILU
QFLGHQFH RI P
QFLGHQF
ELG RQ GD\ RI
LG RQ GD\ R
FUHDVH VXEVHT
FUHDVH VXEVH
DQ EH FRQV
DQ EH FRQ
OXGLQJDSUHSLW
OXGLQJDSUH
7(  7KH 3K
(  7KH 3K
VHOLPLWLQJWR[
VHOLPLWLQJWR[
D GRVH GH
D GRVH
H
RVHOHYHOIRU3
RVHOHYHOIR
QWLO WKH WR[LFLW
WKH WR[LF
HQWV HQUROOHG
HQWV HQUROOHG
HILQHG DV WKH
HILQHG DV
'/7LV
'/7LV
D
D


6

3DJH

9HUVLRQ'DWH

KRXUV

)8
PJP
,9RYHU

)ROORZLQJOHXFRYRULQ


KRXUV

DQGLULQRWHFDQ

3HJILOJUDVWLP
PJ
64

)ROORZLQJGLVFRQQHFWLRQ
2U



RI)8
)LOJUDVWLP
RUPFJ64

)ROORZLQJGLVFRQQHFWLRQ




RI)8GDLO\IRU




GD\V


1RWH2QHF\FOH GD\V
 )RU'RVH/HYHO2QO\3(*3+JLYHQRQ'D\RUWUHDWLQJSK\VLFLDQ¶V
FKRLFHIRU&\FOHVDQGRQO\
 6HHGRVHGHHVFDODWLRQVFKHPDLQ6HFWLRQE2QO\RQHGRVHOHYHOZLOOEH
RSHQDWDWLPH
,Q WKH HYHQW RI D OHXFRYRULQ VKRUWDJH WKH GRVDJH PD\ EH UHGXFHG WR 
PJPRUPJPUDFHPLFOHYROHXFRYRULQPD\EHVXEVWLWXWHG

,03257$17127(7KH3KDVH,SRUWLRQRIWKLVWULDOLVQRZFORVHG5DSLG
UHSRUWLQJRIGRVHOLPLWLQJWR[LFLWLHV6HFWLRQLVQRORQJHUUHTXLUHG

E
3(*3+'RVHGHHVFDODWLRQVFKHPD


'RVH/HYHO
3(*3+
,9RYHUPLQ

PFJNJRQ'D\DQG'D\RU

PFJNJRQ'D\RQO\

PFJNJRQ'D\RQO\

F
'RVH'HWHUPLQDWLRQ5XOHV


'RVH/LPLWLQJ7R[LFLW\'/7LVGHILQHGLQ6HFWLRQG

2QO\ '/7V RFFXUULQJ GXULQJ &\FOH  ZLOO EH XVHG WR JXLGH GRVLQJ
GHWHUPLQDWLRQRI3(*3+


3DWLHQWVZLOOEHFRQVLGHUHGHYDOXDEOHIRU'/7LIWKH\UHFHLYHG3(*3+
DWWKHDVVLJQHGGRVHIRU&\FOHRULIWKH\GHYHORSHGD'/7,IIRUDQ\
UHDVRQDSDWLHQWGRHVQRW GHYHORSD'/7EXWGRHVQRWUHFHLYHWKHIXOO
DVVLJQHG 3(*3+ GRVH WKH SDWLHQW ZLOO EH FRQVLGHUHG QRW HYDOXDEOH
IRU'/7DQGZLOOEHUHSODFHG


7KHIROORZLQJGRVLQJVFKHPHZLOOEHXVHGIRUGRVHGHWHUPLQDWLRQ

D
%HJLQDW'RVH/HYHOVHH'RVH'HHVFDODWLRQ6FKHPHDERYH


E
(QUROO  SDWLHQWV DQG HYDOXDWH IRU WR[LFLW\ (QUROO DGGLWLRQDO
SDWLHQWV DV UHTXLUHG XQWLO  HYDOXDEOH SDWLHQWV KDYH EHHQ
HQUROOHG

F
,IRURIWKHLQLWLDOSDWLHQWVH[SHULHQFHVD'/7GXULQJWKHILUVW
F\FOHWKHQWKLVGRVH/HYHOLVWKH07'

CLOSED EFFECTIVE 07/01/2017
HFWLRQ
WLRQ
20
UHDWLQJSK\VLF
LQJSK\VLF
\RQHGRVHOHY
\RQHGRVHOH
DJH PD\ EH
DJH PD\ EH
D\EHVXEVWLWX
D\EHVXEVWLWX
RIWKLVWULDOLV
IWKLVWULDO
WLRQ
QLV

0
PD
PD
VE
TIV
TI
TI
TI
TI
CT

EC
EC
HWHUPLQDWLRQ5
HWHUPLQD
'RVH/LP
'RV

2QO
2Q
G




6

3DJH

9HUVLRQ'DWH
G
,IRUPRUHRIWKHLQLWLDOSDWLHQWVH[SHULHQFHD'/7GXULQJWKH
ILUVWF\FOHFRQWLQXHWRWKHQH[WORZHUGRVHOHYHODQGUHWXUQWR³E´
LPPHGLDWHO\DERYH,IWKHFXUUHQWGRVHOHYHOLV'RVH/HYHOWKH
VWXG\PD\EHSHUPDQHQWO\FORVHG

2QO\ RQH GRVH OHYHO RI 3(*3+ ZLOO EH RSHQHG DW D WLPH $GYHUVH
HYHQWV DQG DFFUXDO PRQLWRULQJ DUH GRQH URXWLQHO\ E\ WKH 6WXG\ &KDLUV
DQG 6WXG\ 6WDWLVWLFLDQV $ PDQGDWRU\ FRQIHUHQFH FDOO IRU VWXG\ WHDPV
ZLWKDFWLYHSDWLHQWVZLOOWDNHSODFHRQFHDZHHNVHH6HFWLRQ
G
'HILQLWLRQRI'RVH/LPLWLQJ7R[LFLW\

7R[LFLWLHVZLOOEHJUDGHGDFFRUGLQJWRWKH1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU
$GYHUVH(YHQWV9HUVLRQ

'RVHOLPLWLQJWR[LFLWLHV'/7DSSO\RQO\GXULQJ&\FOHDQGPXVWEHGHILQHGDV
DWWULEXWDEOHWR3(*3+DQGRUP)2/),5,12;SRVVLEOHSUREDEOHRUGHILQLWH
'/7LVGHILQHGDVDQ\RIWKHIROORZLQJGUXJUHODWHGWR[LFLWLHVRFFXUULQJLQWKHILUVW
F\FOHZHHNSHULRGRIWUHDWPHQW


$Q\ *UDGH   QRQKHPDWRORJLF WR[LFLW\ H[FHSW DORSHFLD DQG *UDGH 
QDXVHDYRPLWLQJDQGGLDUUKHDUHVSRQGLQJWRPHGLFDOWUHDWPHQWZLWKLQ
KRXUV


+HPDWRORJLFWR[LFLW\

D
*UDGHDQHPLDRUWKURPERF\WRSHQLD

E
*UDGH$1&ODVWLQJ!GD\V

F
*UDGHIHEULOHQHXWURSHQLD


/DERUDWRU\WHVW

D
*UDGHHOHYDWLRQRI$67$/7WRWDOELOLUXELQDQGFUHDWLQLQH,I
EDVHOLQH YDOXHV DUH HOHYDWHG WKHQ LQFUHDVH VKRXOG EH E\ 
JUDGHVWREHFDOOHGD'/7


'HOD\LQVWDUWLQJWKHQGF\FOHRIP)2/),5,12;E\!ZHHNVGXHWR
GUXJUHODWHGWR[LFLW\


3KDVH,,

7KHVWXG\ZLOOWHPSRUDULO\FORVHSULRUWRRSHQLQJWKH3KDVH,,SRUWLRQWRGHILQHWKH3KDVH
,,GRVHRI3(*3+DQGDPHQGWKHSURWRFRO3DWLHQWVZLOOEHUDQGRPO\DVVLJQHGWR$UP
RU$UP

D
7UHDWPHQW$UPP)2/),5,12;

3DWLHQWVDVVLJQHGWR$UPZLOOUHFHLYHWKHIROORZLQJWUHDWPHQWXQWLOPHHWLQJRQH
RIWKHFULWHULDLQ6HFWLRQ
$JHQW
'RVH
5RXWH
'D\
6FKHGXOH

2[DOLSODWLQ
PJP
,9RYHU

3ULRUWRLULQRWHFDQ


KRXUV

DQGOHXFRYRULQ

/HXFRYRULQ
PJP
,9RYHU

:LWKLULQRWHFDQ
CLOSED EFFECTIVE 07/01/2017
H
DLUV
DLUV
WHDPV
DPV

0
LQRORJ\&ULWHUL
QRORJ\&ULWHU
DQG
DQGPXVW
PX
EH
E
VVLEOHSUREDE
VVLEOHSURE
GWR[LFLWLHVRFF
GWR[LFLWLHVRFF
R[LFLW\ H[FHS
FLW\ H[FHS
HVSRQGLQJWRP
HVSRQGLQJWR
HPLDRUWKURP
HPLDRUWKURP
$1&ODVWLQJ
$1&ODVWL
UDGHIHEULO
UDGHIHEU
UDWRU\WHVW
UDWRU\WHVW
D
D
*UDGH
*
EDV
ED

'HOD
'HO
G
3KDVH,,
3KDVH
7KHVWX
7KHVWX
,,GRV
,,GRV
R



6

3DJH

9HUVLRQ'DWH

KRXUV

,ULQRWHFDQ
PJP
,9RYHU

:LWKOHXFRYRULQ 


KRXUV

)8
PJP
,9RYHU

)ROORZLQJOHXFRYRULQ


KRXUV

DQGLULQRWHFDQ

3HJILOJUDVWLP
PJ
64

)ROORZLQJGLVFRQQHFWLRQ
2U



RI)8
)LOJUDVWLP
RU
64

)ROORZLQJGLVFRQQHFWLRQ

PFJ


RI)8GDLO\IRUGD\V


1RWH2QHF\FOH GD\V
 ,Q WKH HYHQW RI D OHXFRYRULQ VKRUWDJH WKH GRVDJH PD\ EH UHGXFHG WR 
PJPRUPJPUDFHPLFOHYROHXFRYRULQPD\EHVXEVWLWXWHG

E
7UHDWPHQW$UP±3(*3+P)2/),5,12;

3DWLHQWVDVVLJQHGWR$UPZLOOUHFHLYHWKHIROORZLQJWUHDWPHQWXQWLOPHHWLQJRQH
RIWKHFULWHULDRILQ6HFWLRQ
$JHQW
'RVH
5RXWH
'D\
6FKHGXOHĮ

(QR[DSDULQ¨ PJNJE
64

,QLWLDOGRVHSULRUWR
/0:+



3(*3+DQGFRQWLQXHG




GDLO\

3(*3+
PFJNJ
,9RYHU

KRXUVSULRU



PLQ

WREHJLQQLQJ




P)2/),5,12;

2[DOLSODWLQ
PJP
,9RYHU

3ULRUWRLULQRWHFDQ


KRXUV

DQGOHXFRYRULQ

/HXFRYRULQ PJP
,9RYHU

:LWKLULQRWHFDQ


KRXUV

,ULQRWHFDQ
PJP
,9RYHU

:LWKOHXFRYRULQ 


KRXUV

)8
PJP
,9RYHU

)ROORZLQJOHXFRYRULQ

 KRXUV


DQGLULQRWHFDQ

3HJILOJUDVWLP PJ
64

)ROORZLQJGLVFRQQHFWLRQ
2U



RI)8
)LOJUDVWLP
RUPFJ
64

)ROORZLQJGLVFRQQHFWLRQ




RI)8GDLO\IRUGD\V

Į
1RWH2QHF\FOH GD\V
E
5RXQGXSWRFORVHVWV\ULQJHVWUHQJWK
¨
(QR[DSDULQGDOWHSDULQRURWKHUORZPROHFXODUZHLJKWKHSDULQHTXLYDOHQWDUH
DFFHSWDEOH
 ,Q WKH HYHQW RI D OHXFRYRULQ VKRUWDJH WKH GRVDJH PD\ EH UHGXFHG WR 
PJPRUPJPUDFHPLFOHYROHXFRYRULQPD\EHVXEVWLWXWHG
CLOSED EFFECTIVE 07/01/2017
QHFWLRQ
QHFWLRQ
VFRQQHFWLRQ
VFRQQHFWLRQ
DLO\IRU
DLO\IRUGD\
 GD\
/2
PD\ EH UHGXF
PD\ EH UHGX
HVXEVWLWXWHG
HVXEVWLWXWHG
OORZLQJWUHDWP
RZLQJWUHDWP
XWH
XWH
'D\
E
64
J
,9
PJP
PJP
RULQ
RULQ P

ULQRWHFDQ
LQRWHFD

)8
)


6

3DJH

9HUVLRQ'DWH

&ULWHULDIRU5HPRYDOIURP3URWRFRO7UHDWPHQW

D
3URJUHVVLRQ RI GLVHDVH RU V\PSWRPDWLF GHWHULRUDWLRQ  DV GHILQHG LQ 6HFWLRQ

E
8QDFFHSWDEOHWR[LFLW\

F
7UHDWPHQW GHOD\ IRU DQ\ UHDVRQ !  ZHHNV H[FHSW LQ D SDWLHQW ZLWKRXW SULRU
KLVWRU\ RI D WKURPERHPEROLF HYHQW 7( QRW UHFHLYLQJ ORZ PROHFXODU ZHLJKW
KHSDULQ DW EDVHOLQH ZKR KDV D *UDGH  RU OHVV YHQRXV 7( PDQDJHG ZLWK ORZ
PROHFXODUZHLJKWKHSDULQZKRKDVEHHQVWDEOHIRUZHHNVVHH6HFWLRQF
G
7KHSDWLHQWVPD\ZLWKGUDZIURPWKHVWXG\DWDQ\WLPHIRUDQ\UHDVRQ

'LVFRQWLQXDWLRQRI7UHDWPHQW

$OO UHDVRQV IRU GLVFRQWLQXDWLRQ RI WUHDWPHQW PXVW EH GRFXPHQWHG LQ WKH 2II7UHDWPHQW
1RWLFH


)ROORZ8S3HULRG

$OOSDWLHQWVZLOOEHIROORZHGXQWLOGHDWKRU\HDUVDIWHUUHJLVWUDWLRQZKLFKHYHURFFXUVILUVW



72;,&,7,(672%(021,725('$1''26(02',),&$7,216


1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV

7KLVVWXG\ZLOOXWLOL]HWKH&7&$(1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV
9HUVLRQ  IRU WR[LFLW\ DQG 6HULRXV $GYHUVH (YHQW UHSRUWLQJ  $ FRS\ RI WKH &7&$(
9HUVLRQFDQEHGRZQORDGHGIURPWKH&7(3KRPHSDJHKWWSFWHSFDQFHUJRY$OO
DSSURSULDWHWUHDWPHQWDUHDVVKRXOGKDYHDFFHVVWRDFRS\RIWKH&7&$(9HUVLRQ


*HQHUDO&RQVLGHUDWLRQV

D
:DLWIRUWKHUHFRYHU\RIWR[LFLWLHVWR*UDGHRUOHVVWRUHVXPHWKHWUHDWPHQW

E
3UHYHQW WKH ULVN RI ³GHOD\HG´ QDXVHDYRPLWLQJ E\ DSUHSLWDQW RU VLPLODU DJHQW
DFFRUGLQJ WR LQVWLWXWLRQDO JXLGHOLQHV SOXV FRUWLFRVWHURLGV XVH ZLWK FDXWLRQ LQ
GLDEHWHV
F
,QFDVHRIFKROLQHUJLFV\QGURPHXVHPJRIDWURSLQHVXEFXWDQHRXVXQOHVV
FRQWUDLQGLFDWHG

G
8VHDWRWDOVXQVFUHHQFUHDPLQFDVHRIVRODUH[SRVXUH
H
([SODLQ LQVWUXFWLRQV LQ FDVHV RI GLDUUKHD DIWHU LULQRWHFDQ DFFRUGLQJ WR 6HFWLRQ
H
I
7KHIROORZLQJGUXJVDUHQRWDOORZHGIRUWKHUDSHXWLFXVHZDUIDULQPHWURQLGD]ROH
RUQLGD]ROH
J
7KHGRVHRIOHXFRYRULQLVQRWPRGLILHGIRUWR[LFLW\EXWLVRPLWWHGLIIOXRURXUDFLOLV
RPLWWHG
K
2QFHDGRVHLVGHFUHDVHGUHHVFDODWLRQLVQRWSHUPLWWHG
CLOSED EFFECTIVE 07/01/2017
RXW SULRU
XW SULRU
ODU ZHLJKW
DU ZHLJ
JHG ZLWK
JHG ZLW
ORZ
OR
HFWLRQF
HFWLRQF
/20
\UHDVRQ
HDVRQ
XPHQWHG LQ WK
PHQWHG LQ WK
UVDIWHUUHJLVWU
UVDIWHU
02',
02',),&$7,
),&$7,
DIRU$GY
DIRU$
HUVH(
HUVH
&$(1&,&RP
$(1&,&RP
QG 6HULRXV $G
QG 6HULRXV $
QORDGHGIURP
QORDGHGIURP
DUHDVVKRXOG
DUHDVVKRXO
UDWLRQV
UDWLRQV
LWIRUWKHUHFRY
WIRUWKHUHFRY
3UHYHQW WKH
UHYHQW WKH
DFFRUGLQJ
DFFRUGLQJ
GLDEHWH
GLD
FF
,Q
,Q
G
G


6

3DJH

9HUVLRQ'DWH
L
$OOGRVHDGMXVWPHQWVVKRXOGEHEDVHGRQWKHWR[LFLW\JUDGHGXVLQJWKH&7&$(
9HUVLRQUHTXLULQJWKHODUJHVWGRVHUHGXFWLRQ


7R[LFLWLHV7R%H0RQLWRUHG

7R[LFLWLHVZLOOEHJUDGHGDFFRUGLQJWRWKH1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH
(YHQWV9HUVLRQ7KHVHWR[LFLWLHVVKRXOGEHFORVHO\PRQLWRUHGGXULQJWKHILUVWF\FOHV
RIWUHDWPHQWIRUHYHU\SDWLHQW


$Q\*UDGHQRQKHPDWRORJLFWR[LFLW\H[FHSWDORSHFLDDQG*UDGHQDXVHD
YRPLWLQJDQGGLDUUKHDUHVSRQGLQJWRPHGLFDOWUHDWPHQWZLWKLQKRXUV


+HPDWRORJLFWR[LFLW\

D
*UDGHDQHPLDRUWKURPERF\WRSHQLD

E
*UDGH$1&ODVWLQJ!GD\V

F
*UDGHIHEULOHQHXWURSHQLD


/DERUDWRU\WHVW

D
*UDGHHOHYDWLRQRI$67$/7WRWDOELOLUXELQDQGFUHDWLQLQH,IEDVHOLQH
YDOXHVDUHHOHYDWHGWKHQLQFUHDVHVKRXOGEHE\JUDGHV


'HOD\LQVWDUWLQJWKHQGF\FOHRIP)2/),5,12;E\!ZHHNVGXHWRGUXJUHODWHG
WR[LFLW\

'RVH0RGLILFDWLRQVIRUP)2/),5,12;



D
'RVH0RGLILFDWLRQV



'RVH5HGXFWLRQ
'RVH5HGXFWLRQ
'UXJ
,QLWLDOGRVH
/HYHO
/HYHO

)8
PJP
PJP
PJP

,ULQRWHFDQ
PJP
PJP
PJP

2[DOLSODWLQ
PJP
PJP
PJP

E
1HXWURSKLO&RXQW'HFUHDVHG



+ROGWUHDWPHQWXQWLOUHFRYHU\WRDWOHDVW*UDGHIRUXSWRWZRZHHNV,ISDWLHQW
KDVQRWUHFRYHUHGWR*UDGHLQWZRZHHNVGLVFRQWLQXHWUHDWPHQW)ROORZGUXJ
VSHFLILFPRGLILFDWLRQVEHORZIRUVXEVHTXHQWF\FOHV

7R[LFLW\*UDGH 0RGLILFDWLRQ)8
,ULQRWHFDQ
2[DOLSODWLQ


0DLQWDLQGRVH
VWRFFXUUHQFH
VWRFFXUUHQFH



5HGXFHE\
0DLQWDLQGRVH




GRVHOHYHO



QGRFFXUUHQFH
QGRFFXUUHQFH
CLOSED EFFECTIVE 07/01/2017
H
FOHV
HV
QDXVHD
QDXVH
UV
UV
/7WRWDOELOLUXE
7WRWDO
FUHDVHVKRXOG
UHDVHVKRXO
IP)2/),5,12
P)2/),5,1
/),5,12;
,5,12;
DWLRQV
DWLRQV
,QL
,Q
EF
)8
)8
,ULQRWHFD
,ULQRWHFD
2[D
2[
E
E


6

3DJH

9HUVLRQ'DWH

0DLQWDLQDW
5HGXFHE\


FXUUHQWGRVH
GRVHOHYHO



UGRFFXUUHQFH
UGRFFXUUHQFH


'LVFRQWLQXH
'LVFRQWLQXH


WUHDWPHQW
WUHDWPHQW 
F
3ODWHOHW&RXQW'HFUHDVHG


+ROGWUHDWPHQWXQWLOUHFRYHU\WR*UDGHIRUXSWRWZRZHHNV,ISDWLHQWKDVQRW
UHFRYHUHGWR*UDGHLQWZRZHHNVGLVFRQWLQXHWUHDWPHQW)ROORZGUXJVSHFLILF
PRGLILFDWLRQVEHORZIRUVXEVHTXHQWF\FOHV

7R[LFLW\*UDGH 0RGLILFDWLRQ)8
,ULQRWHFDQ
2[DOLSODWLQ


VWRFFXUUHQFH
VWRFFXUUHQFH
VWRFFXUUHQFH

5HGXFHE\
0DLQWDLQGRVH
5HGXFHE\

GRVHOHYHO

GRVHOHYHO


QGRFFXUUHQFH
QGRFFXUUHQFH
QGRFFXUUHQFH


5HGXFHE\
5HGXFHE\
0DLQWDLQFXUUHQW

GRVHOHYHO
GRVHOHYHO
GRVH


UGRFFXUUHQFH
UGRFFXUUHQFH
UGRFFXUUHQFH

'LVFRQWLQXH
'LVFRQWLQXH
'LVFRQWLQXH

WUHDWPHQW
WUHDWPHQW
WUHDWPHQW 
G
1RQKHPDWRORJLFWR[LFLWLHV



$OOWUHDWPHQWUHODWHGQRQKHPDWRORJLFDOWR[LFLWLHVZLWKWKHH[FHSWLRQRIKDLUORVV
VKRXOGUHVROYHWR*UDGHSULRUWRVWDUWLQJQH[WF\FOHRIWKHUDS\

7R[LFLW\*UDGH
0RGLILFDWLRQ)8,ULQRWHFDQDQG2[DOLSODWLQ


+ROGDOOGUXJVXQWLOUHVROXWLRQWR*UDGH7KHQUHVXPH
WUHDWPHQWDWWKHQH[WORZHUGRVHOHYHO

'LVFRQWLQXHDOOSURWRFROWUHDWPHQW

 )RU DOO RWKHU VSHFLILF QRQKHPDWRORJLFDO WR[LFLWLHV GRVH UHGXFWLRQ LV GHWDLOHG
EHORZ

H
'LDUUKHD

3DWLHQWVVKRXOGEHLQVWUXFWHGLQWKHXVHRIORSHUDPLGHPJHYHU\KRXUVXQWLO
GLDUUKHDUHVROYHVIRUKRXUVPJTKRXUVDWQLJKWLVDOORZHGDVWUHDWPHQW
IRUGLDUUKHD+ROGWUHDWPHQWLIGLDUUKHD!*UDGHZLWKRXWORSHUDPLGHDWVWDUWRI
F\FOH3DWLHQWVKRXOGQRWEHUHWUHDWHGZLWKLULQRWHFDQXQWLOGLDUUKHDKDVUHVROYHG
WR*UDGHZLWKRXWORSHUDPLGHIRUDWOHDVWKRXUV
CLOSED EFFECTIVE 07/01/2017
DWLHQWKDVQRW
DWLHQWKDVQ
RZGUXJVSHFL
RZGUXJVSHFL
2[DOLSODWLQ
2[DOLSODW
01
FH
FH
VWVW R
GRVH
GRVH
5
RFFXUUHQFH
FXUUHQF
5HGXFHE\
5HGXFHE\
GRVHOHYHO
GRVH
UG
UG RF
RF
'LV
'
W
CT
[LFLWLHV
[LFLWL
HODWHGQRQ
DWHGQR KH
K
YHWR*UDGH
YHWR*UDGH
\*UDGH
\*UDGH
FF


D

H
H


6

3DJH

9HUVLRQ'DWH
7R[LFLW\*UDGH 
0RGLILFDWLRQ


VWRFFXUUHQFH5HGXFHLULQRWHFDQE\GRVHOHYHO


QGRFFXUUHQFH5HGXFHR[DOLSODWLQGRVHE\GRVHOHYHO
DQG)8GRVHE\GRVHOHYHO


UGRFFXUUHQFH'LVFRQWLQXHDOOSURWRFROWUHDWPHQW

I
0XFRVLWLV



7R[LFLW\*UDGH 
0RGLILFDWLRQ

2[DOLSODWLQ

)8

+ROGWUHDWPHQW
+ROGWUHDWPHQW

&KHFNZHHNO\ 
&KHFNZHHNO\

:KHQUHVROYHVWR
:KHQUHVROYHVWR

*UDGHFRQWLQXH
*UDGHFRQWLQXH



DWVDPHGRVHOHYHO
DWVDPHGRVHOHYHO


+ROGWUHDWPHQW
+ROGWUHDWPHQW

&KHFNZHHNO\ 
&KHFNZHHNO\

:KHQUHVROYHVWR
:KHQUHVROYHVWR

*UDGHFRQWLQXH
*UDGHFRQWLQXHDW



DWVDPHGRVHOHYHO
QH[WORZHVWGRVHOHYHO
J
3DUHVWKHVLD RU 3HULSKHUDO 6HQVRU\ 1HXURSDWK\ ± 'RVH PRGLILFDWLRQV IRU
R[DOLSODWLQRQO\





'XUDWLRQRI7R[LFLW\

3HUVLVWHQWEHWZHHQ
7R[LFLW\*UDGH 
±GD\V
!GD\V
F\FOHV




1RGRVH
1RGRVH
1H[WORZHVWGRVH



PRGLILFDWLRQ
PRGLILFDWLRQ
OHYHOIRUR[DOLSODWLQ




1H[WORZHVW
1H[WORZHVW
'LVFRQWLQXH



GRVHOHYHO
GRVHOHYHO



IRUR[DOLSODWLQ
IRUR[DOLSODWLQ

3HULSKHUDO6HQVRU\
'LVFRQWLQXH
'LVFRQWLQXH
'LVFRQWLQXH
1HXURSDWK\*UDGH
K
+DQG)RRW6NLQ5HDFWLRQ

7R[LFLW\*UDGH
0RGLILFDWLRQ
)8


5HGXFHE\GRVHOHYHO 
HO
01
1/
ROGWUHDWPHQW
ROGWUHDWPHQW
&KHFNZHHNO
&KHFNZHH
:KHQUHVR
:KHQUH
H
 *UDGH
*UD
YHO
YHO
DWVDP
DW VD
HQW
QW
ZHHNO\
HHNO\
UHVROYHVWR
UHVROYHVWR
UDGHFRQWLQ
UDGHFRQWLQ
WVDPHGRVHO
VDPHGRVH
CT
3HULSKHUDO 6
3HULSKHUDO 6
\*UDG
*UDGH
H
FF




6

3DJH

9HUVLRQ'DWH

'RVH0RGLILFDWLRQVIRU3(*3+


D
'RVHPRGLILFDWLRQV




'UXJ

,QLWLDOGRVH
'RVH5HGXFWLRQ/HYHO

3(*3+

PFJNJRQ
PFJNJRQ


'D\RQO\
'D\RQO\


 2QO\ RQH GRVH UHGXFWLRQ LV DOORZHG LQ 3KDVH ,,  ,I QG GRVH UHGXFWLRQ LV
QHHGHGFRQWLQXHZLWKRWKHUGUXJV

E
0XVFXORVNHOHWDO

7R[LFLW\*UDGH 
0RGLILFDWLRQ

0DLQWDLQ FXUUHQW GRVH IRU ILUVW HSLVRGH RI *UDGH 
PXVFXORVNHOHWDO HYHQW WKDW UHVROYHV WR *UDGH  E\ WKH
EHJLQQLQJ
RI
WKH
QH[W
F\FOH
ZLWK
RU
ZLWKRXW
GH[DPHWKDVRQH PXVFOH UHOD[HU RU DGGLWLRQDO SDLQ
PHGLFDWLRQ ,I *UDGH  PXVFXORVNHOHWDO HYHQW LV VWLOO
SUHVHQWDWEHJLQQLQJRIQH[WF\FOHUHGXFH3(*3+E\
GRVHOHYHO)RUDVHFRQGHSLVRGHRI*UDGHUHTXLULQJ
DQ\ GH[DPHWKDVRQH PXVFOH UHOD[HU RU DGGLWLRQDO SDLQ
PHGLFDWLRQWKDWUHVROYHVWR*UDGHE\WKHEHJLQQLQJRI
QH[WF\FOHUHGXFH3(*3+E\GRVHOHYHO,IVHFRQG
HSLVRGH RI *UDGH  LV VWLOO SUHVHQW DW WKH EHJLQQLQJ RI
QH[WF\FOHWKHQUHGXFH3(*3+E\GRVHOHYHORURPLW
LI QR IXUWKHU GRVH UHGXFWLRQ LV SRVVLEOH 3(*3+ FDQ
EH GRVH HVFDODWHG DIWHU &\FOH  E\ RQH OHYHO LI
PXVFXORVNHOHWDOHYHQWLV*UDGHRUOHVVZLWKSUHFHGLQJ
GRVH

RUWKDWUHVROYH
+ROGWUHDWPHQW,IUHVROYHGWR*UDGHZLWKLQGD\V
WR*UDGHZLWKLQ
UHGXFHE\GRVHOHYHODQGUHVXPHWUHDWPHQW
GD\V

RUWKDWSHUVLVWV
'LVFRQWLQXHWUHDWPHQW
DQGUHPDLQVDW!*UDGH
DIWHUGD\V

F
7KURPERHPEROLFHYHQWV

6KRXOGDSDWLHQWH[SHULHQFHDQDUWHULDO7(HYHQWLHVWURNH7,$0,RUD*UDGH
YHQRXV7(HYHQWZKLOHRQVWXG\3(*3+WUHDWPHQWPXVWEHGLVFRQWLQXHG
SHUPDQHQWO\,QDSDWLHQWRQORZPROHFXODUZHLJKWKHSDULQ/0:+DWEDVHOLQH
D VHFRQG 7( HYHQW ZKLOH RQ VWXG\ ZLOO UHVXOW LQ SHUPDQHQW GLVFRQWLQXDWLRQ RI
3(*3+WUHDWPHQW

CLOSED EFFECTIVE 07/01/2017
17
/2
GRVH UHGXFWL
GRVH UHGXFW
7/
RVH IRU ILUVW
H IRU ILUV
HYHQW WKDW UHV
HYHQW WKDW UH
WKH
QH[W
WKH
QH[W
RQH PXVFOH
RQH PXVF
Q ,I *UDGH
,I *UDGH
DWEHJLQQLQJ
DWEHJLQQLQJ
VHOHYHO)RUD
VHOHYHO)RU
\ GH[DPHWKDV
\ GH[DPHW
PHGLFDWLRQWK
PHGLFDWLRQWK
QH[WF\FOH
QH[WF\FOH
HSLVRGH
RG
QH[WF
QH[WF
LI QR
LI
E
RUWKDWUHVRO
RUWKDWUH
WR
*UDGH
*UDGH
GD\V
GD\V
RU
R
DQG
DQ

F


6

3DJH

9HUVLRQ'DWH
G
1RQPXVFXORVNHOHWDO

7R[LFLW\*UDGH 
0RGLILFDWLRQ


+ROG WUHDWPHQW 7UHDWPHQW PD\ UHVXPH DW WKH VDPH
GRVH OHYHO LI WR[LFLW\ LV UHVROYHG WR EDVHOLQH ZLWKLQ 
GD\V 'RVH PD\ EH UHGXFHG E\ RQH GRVH OHYHO DW
WUHDWLQJLQYHVWLJDWRU¶VGLVFUHWLRQ


+ROG WUHDWPHQW 7UHDWPHQW PD\ UHVXPH DW D UHGXFHG
GRVHOHYHOLIUHVROYHGWR*UDGHRUEDVHOLQH 

'RVH0RGLILFDWLRQVIRU3HJILOJUDVWLPRU)LOJUDVWLP

3HJILOJUDVWLP RU ILOJUDVWLP LQFOXGLQJ ELRVLPLODUV PXVW EH XWLOL]HG SHU $6&2 JXLGHOLQHV
KWWSMRSDVFRSXEVRUJFJLFRQWHQWIXOO DQG 1&&1*XLGHOLQHV0\HORLG*URZWK
)DFWRUVKWWSZZZQFFQRUJSURIHVVLRQDOSK\VLFLDQBJOVSGIP\HORLGBJURZWKSGI


'RVH0RGLILFDWLRQV&RQWDFWV

)RU WUHDWPHQW RU GRVH PRGLILFDWLRQ TXHVWLRQV SOHDVH FRQWDFW 'U 5DPDQDWKDQ DW
RU'U3KLOLSDW


$GYHUVH(YHQW5HSRUWLQJ

7R[LFLWLHV LQFOXGLQJ VXVSHFWHG UHDFWLRQV WKDW PHHW WKH H[SHGLWHG UHSRUWLQJ FULWHULD DV
RXWOLQHGLQ6HFWLRQRIWKHSURWRFROPXVWEHUHSRUWHGWRWKH6:2*2SHUDWLRQV2IILFH
WKH6WXG\&KDLUWKH1&,YLD&7(3$(56DQGWRWKH,5%SHUORFDO,5%UHTXLUHPHQWV
CLOSED EFFECTIVE 07/01/2017
H


YHO DW
O D
DW D UHGXFHG
DW D UHGXFH
HOLQH
HOLQH
1/2
XWLOL]HG SHU $6
WLOL]HG SHU $
&1*XLGHOLQHV
1*XLGHOLQHV
VSGIP\HORLGB
VSGIP\HORLGB
RQV SOHDVH
RQV SOHDV

UHDFWLRQV WKDW
DFWLRQV WKD
SURWRFROPXVW
SURWRFROPXV
&7(3
7
$(56
$(


6

3DJH

9HUVLRQ'DWH

678'<&$/(1'$5


Study Calendar Phase I





&\FOH
&\FOH
&\FOH
&\FOH


5(48,5('678',(6
3UH
VWXG\
'

KRXUV
SRVWLQLWLDO
3(*3+
GRVH
'

'

'

'

'

'

'

Ȉ
2II7UHDWPHQW
3UH
3URJUHVVLRQ
)ROORZ8Sȍ
3RVW
3URJUHVVLRQ
)ROORZ8S













3+<6,&$/Ȉ












+LVWRU\DQG3K\VLFDO([DP
;a



;

;

;

;
;
:HLJKWDQG3HUIRUPDQFH6WDWXV
;



;

;

;

;

7R[LFLW\1RWDWLRQ

;

;
;

;

;

;

/$%25$725<Ȉ












&%&'LIIHUHQWLDO3ODWHOHWV
;a



;

;

;



7RWDO%LOLUXELQ
;a



;

;

;



6HUXP&UHDWLQLQHRU&DOFXODWHG
&UHDWLQLQH&OHDUDQFH
;a



;

;

;



$67$/7
;a



;

;

;



$ONDOLQHSKRVSKDWDVH
;a



;

;

;



6RGLXP3RWDVVLXP&KORULGH
*OXFRVH%81&2
;a



;

;

;



,15
;a











&$
;a





;





6HUXP$OEXPLQ
;a











;5$<6$1'6&$16Ȉ












&705,IRU'LVHDVH
$VVHVVPHQW
;








;
;

63(&,0(168%0,66,21












7LVVXHEORFNRUVOLGHV5HTXLUHG
Į
;











%ORRGVSHFLPHQ5HTXLUHGĮ
;

;

;

;





75($70(17Ȉ












3(*3+ȕ

;
;

;

;

;



,ULQRWHFDQ

;


;

;

;



2[DOLSODWLQ

;


;

;

;



)8

;


;

;

;



3HJILOJUDVWLP)LOJUDVWLP

;


;

;

;



&OLFNKHUHIRUIRRWQRWHV
CLOSED EFFECTIVE 07/01/2017


Ȉ
2II7UHDWP
2II7UHDWP
3UH
UH
3URJ
3UR
)R
)R
1/
7/0
7/
07/
07
07
07
07
;
07
07
07
E 07
;
E 0
E 0
E 0
E 0
;
;
E
VE
VE
VE
VE
VE
;
VE
VE
VE
IVE
;
IV
IV
IV
TIV
;
;
TIV
TIV
TIV
CTIV
;
CT
CT
CT
CT
;
CT
CT
CT
ECT
;
EC
EC
EC
FEC
FE
FE
FE
FE
FE
FE
FE
FE
FF
FF
EF
E
D E
;
D E
ED
;
ED
ED
ED
SE
SE
SE
SE
SE
S
OS
OS
)LOJUDVWLP
)LOJUDVWLP
LO
LO
HUHIRU
HUHIRUIRRWQR
RWQ
CL


6

3DJH

9HUVLRQ'DWH

Study Calendar Phase II



2II7UHDWPHQW
3UH3URJUHVVLRQ
)ROORZ8Sȍ
3RVW
3URJUHVVLRQ
)ROORZ8S

5(48,5('678',(6
3UHVWXG\
&\FOH
&\FOH
&\FOH
&\FOH
&\FOHȈ
3+<6,&$/Ȉ
;a







+LVWRU\DQG3K\VLFDO([DP
;

;
;
;
;
;
;
:HLJKWDQG3HUIRUPDQFH6WDWXV
;

;
;
;
;
;

7R[LFLW\1RWDWLRQ


;
;
;
;
;

/$%25$725<Ȉ








&%&'LIIHUHQWLDO3ODWHOHWV
;a

;
;
;
;


7RWDO%LOLUXELQ
;a

;
;
;
;


6HUXP&UHDWLQLQHRU&DOFXODWHG
&UHDWLQLQH&OHDUDQFH
;a

;
;
;
;


$67$/7
;a

;
;
;
;


$ONDOLQHSKRVSKDWDVH
;a

;
;
;
;


6RGLXP3RWDVVLXP&KORULGH
*OXFRVH&2
;a

;
;
;
;


,15
;a







&$
;a







6HUXP$OEXPLQ
;a







;5$<6$1'6&$16Ȉ








&705,IRU'LVHDVH$VVHVVPHQW
;




;
;

63(&,0(168%0,66,21








7LVVXHEORFNRUVOLGHV5HTXLUHGĮ
;







%ORRGVSHFLPHQ5HTXLUHGĮ
;
;






75($70(17Ȉ








(QR[DSDULQഝ

;
;
;
;
;


3(*3+ȕ

;
;
;
;
;


,ULQRWHFDQ

;
;
;
;
;


2[DOLSODWLQ

;
;
;
;
;


)8

;
;
;
;
;


3HJILOJUDVWLP)LOJUDVWLP

;
;
;
;
;


127( )RUPVDUHIRXQGRQWKHSURWRFRODEVWUDFWSDJHRQWKH6:2*ZHEVLWHZZZVZRJRUJ)RUPVVXEPLVVLRQJXLGHOLQHVDUHIRXQGLQ6HFWLRQ
127(8QOHVVLQGLFDWHGRWKHUZLVHLQWKHSURWRFROVFKHGXOHGSURFHGXUHVDQGDVVHVVPHQWVWUHDWPHQWDGPLQLVWUDWLRQWR[LFLW\DVVHVVPHQWIRUFRQWLQXRXV
WUHDWPHQWGLVHDVHDVVHVVPHQWVSHFLPHQFROOHFWLRQDQGIROORZXSDFWLYLWLHVPXVWIROORZWKHHVWDEOLVKHG6:2*JXLGHOLQHVDVRXWOLQHGLQ
KWWSVVZRJRUJ9LVLWRUV'RZQORDG4$%HVW3UDFWLFHVXSGGDWHSGI&OLFNKHUHIRUIRRWQRWHV
CLOSED EFFECTIVE 07/01/2017
2II7UHDWPH
2II7UHDWP
3UH
UH3URJUH
RJU
)ROORZ
ROO
20
01
01
01
01
01
;
/0
;
7/0
;
7/
07
0
;
07
E 0
;
E 0
E 0
E 0
E 0
;
E
VE
;
VE
V
;
;
IV
;
TIV
CT V
CT
CT
CT
CT
CT
CT
CT
CT
EC
EC
EC
FE
FE
FE
FE
FE
FE
FE
FE
FE
FF
FF
;
;
FF
EF
EF
EF
EF
EF
;
E
D E
D
ED
SE
SE
SE
SE
SE
SE
SE
SE
KHSURWRFRODEV
SURWRFRODEV
KHUZLVHLQWKHS
KHUZLVHLQWKH
VVPHQWVSHFLP
PHQWVSHFLP
RUV'RZQORDG4
RZQORDG


6

3DJH

9HUVLRQ'DWH
)RRWQRWHVIRU3KDVH,DQG,,

Ȉ
3URWRFROWUHDWPHQWDQGSDUDPHWHUVZLOOFRQWLQXHDWWKHVHLQWHUYDOVXQWLOSURJUHVVLRQRIGLVHDVHRUXQWLOSDWLHQWKDVPHWDQ\RI
WKHJXLGHOLQHVLQ6HFWLRQ
ȍ $IWHU RII WUHDWPHQW SULRU WR GLVHDVH SURJUHVVLRQ VFDQV IRU GLVHDVH DVVHVVPHQW DQG SK\VLFDO DVVHVVPHQWV ZLWK ODE WHVWV
SHUIRUPHGDWWKHGLVFUHWLRQRIWKHWUHDWLQJLQYHVWLJDWRUVKRXOGWDNHSODFHHYHU\ZHHNVXQWLOSURJUHVVLRQ
 $IWHU RII WUHDWPHQW IROORZLQJ GLVHDVH SURJUHVVLRQ SK\VLFDO DVVHVVPHQWV ZLWK ODE WHVWV SHUIRUPHG DW WKH GLVFUHWLRQ RI WKH
WUHDWLQJLQYHVWLJDWRUVKRXOGWDNHSODFHRQFHHYHU\PRQWKVIRUWKUHH\HDUVIURPWKHWLPHRIUHJLVWUDWLRQ
Į
6HH6HFWLRQIRUPRUHLQIRUPDWLRQ
ȕ
,QIXVLRQPXVWEHJLYHQRQHGD\SULRUWRP)2/),5,12;UHJLPHQIRUSDWLHQWVLQ3KDVH,RU3KDVH,,$UP

,QIXVLRQWREHJLYHQRYHUKRXUV6HH6HFWLRQDQGIRUPRUHLQIRUPDWLRQ

*URZWKIDFWRUVXSSRUWWREHJLYHQIRU$UPRQ'D\SHJILOJUDVWLPRURQ'D\VILOJUDVWLPDQGIRU$UPRQ'D\
SHJILOJUDVWLPRURQ'D\VILOJUDVWLPSHULQVWLWXWLRQDOJXLGHOLQHV6HH6HFWLRQDQG6HFWLRQ
a
0XVWEHSHUIRUPHGZLWKLQGD\VSULRUWRUHJLVWUDWLRQ
ഝ
)RUSDWLHQWVLQ3KDVH,,$UPRQO\HQR[DSDULQPXVWEHJLYHQSULRUWRLQLWLDOGRVHRI3(*3+DQGFRQWLQXHGGDLO\ZKLOHRQ
SURWRFROWUHDWPHQW6HH6HFWLRQE

%ORRGWREHFROOHFWHGKRXUVSRVWLQLWLDO3(*3+GRVHVHH6HFWLRQ
CLOSED EFFECTIVE 07/01/2017
RUXQWLOSDWLHQW
RUXQWLOSDWLH
\VLFDO DVVHVVP
\VLFDO DVVHVVP
XQWLOSURJUHVVLR
WLOSURJUHVVL
HVWV SHUIRUPH
HVWV SHUIRUPH
HWLPHRIUHJLVW
HWLPHRIUHJLV
3KDVH,RU3KD
3KDVH,RU3KD
PDWLRQ
DWLRQ
URQ'D\V
RQ'D\V
H6HFWLRQ
HFWLRQ
0
RUWRLQLWLDOGR
RUWRLQL
H 6HFWLRQ
FWLRQ
VE


6

3DJH

9HUVLRQ'DWH

&5,7(5,$)25(9$/8$7,21$1'(1'32,170($685$%,/,7<2)/(6,216

7KLVVWXG\ZLOOXVHWKH5(&,67JXLGHOLQHV


0HDVXUDELOLW\RI/HVLRQV

D
0HDVXUDEOHGLVHDVH


0HDVXUDEOHGLVHDVHLVGHILQHGGLIIHUHQWO\IRUO\PSKQRGHVFRPSDUHGZLWKRWKHU
GLVHDVHDQGZLOOEHDGGUHVVHGLQDVHSDUDWHVHFWLRQEHORZ



/HVLRQV WKDW FDQ EH DFFXUDWHO\ PHDVXUHG LQ DW OHDVW RQH GLPHQVLRQ
ORQJHVWGLDPHWHUWREHUHFRUGHGDVFPE\FKHVW[UD\E\
FPZLWK&7RU05,VFDQVRUFPZLWKFDOLSHUVE\FOLQLFDOH[DP$OO
WXPRU PHDVXUHPHQWV PXVW EH UHFRUGHG LQ GHFLPDO IUDFWLRQV RI
FHQWLPHWHUVRUPLOOLPHWHUV
7KH GHILQHG PHDVXUDELOLW\ RI OHVLRQV RQ &7 VFDQ LV EDVHG RQ WKH
DVVXPSWLRQWKDW&7VOLFHWKLFNQHVVLVFPRUOHVV,I&7VFDQVKDYH
VOLFHWKLFNQHVVJUHDWHUWKDQFPWKHPLQLPXPVL]HIRUDPHDVXUDEOH
OHVLRQVKRXOGEHWZLFHWKHVOLFHWKLFNQHVV


0DOLJQDQWO\PSKQRGHVDUHWREHFRQVLGHUHGSDWKRORJLFDOO\HQODUJHGDQG
PHDVXUDEOHLILWPHDVXUHVFPLQ6+257$;,6JUHDWHVWGLDPHWHU
SHUSHQGLFXODU WR WKH ORQJ D[LV RI WKH O\PSK QRGH ZKHQ DVVHVVHG E\
VFDQ&7VFDQVOLFHUHFRPPHQGHGEHLQJQRJUHDWHUWKDQFP
E
1RQPHDVXUDEOHGLVHDVH$OORWKHUOHVLRQVRUVLWHVRIGLVHDVHLQFOXGLQJVPDOO
OHVLRQVORQJHVWGLDPHWHUFPRUSDWKRORJLFO\PSKQRGHVZLWKFPWR
 FP VKRUW D[LV DUH FRQVLGHUHG QRQPHDVXUDEOH GLVHDVH  %RQH OHVLRQV
OHSWRPHQLQJHDO GLVHDVH DVFLWHV SOHXUDOSHULFDUGLDO HIIXVLRQV O\PSKDQJLWLV
FXWLVSXOPRQLWLV LQIODPPDWRU\ EUHDVW GLVHDVH DQG DEGRPLQDO PDVVHV QRW
IROORZHG E\ &7 RU 05, DUH FRQVLGHUHG QRQPHDVXUDEOH DV DUH SUHYLRXVO\
UDGLDWHGOHVLRQVWKDWKDYHQRWSURJUHVVHG
F
1RWHVRQPHDVXUDELOLW\

)RU &7 DQG 05,V WKH VDPH W\SH RI VFDQQHU VKRXOG EH XVHG DQG WKH
LPDJHDFTXLVLWLRQSURWRFROVKRXOGEHIROORZHGDVFORVHO\DVSRVVLEOHWR
SULRUVFDQV%RG\VFDQVVKRXOGE\SHUIRUPHGZLWKEUHDWKKROGVFDQQLQJ
WHFKQLTXHVLISRVVLEOH


3(7&7$WSUHVHQWWKHORZGRVHRUDWWHQXDWLRQFRUUHFWLRQ&7SRUWLRQRI
D 3(7&7 LV QRW DOZD\V RI RSWLPDO GLDJQRVWLF &7 TXDOLW\ IRU XVH ZLWK
5(&,67PHDVXUHPHQWV+RZHYHULIWKHVLWHFDQGRFXPHQWWKDWWKH&7
SHUIRUPHG DV SDUW RI D 3(7&7 LV RI LGHQWLFDO GLDJQRVWLF TXDOLW\ WR D
GLDJQRVWLF &7 WKHQ WKH &7 SRUWLRQ RI WKH 3(7&7 FDQ EH XVHG IRU
5(&,67 PHDVXUHPHQWV DQG FDQ EH XVHG LQWHUFKDQJHDEO\ ZLWK
FRQYHQWLRQDO&7


8OWUDVRXQG 8OWUDVRXQG LV QRW XVHIXO LQ DVVHVVPHQW RI OHVLRQ VL]H DQG
VKRXOGQRWEHXVHGDVDPHWKRGRIPHDVXUHPHQW


&\VWLF OHVLRQV 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

WKRWKHU
WKRWKHU
RQH GLPHQVLR
RQH GLPHQVLR
/20
HVW[UD\E\
UD\E\
E\FOLQLFDOH[
\FOLQLFDOH[
GHFLPDO IUDF
FLPDO IUD
Q &7 VFDQ LV
 &7 VFDQ LV
FPRUOHVV
FPRUOHV
KHPLQLPXPV
KHPLQLPXPV
NQHVV
HVV
EHFRQVLGHUHG
EHFRQ
FPLQ
FPLQ6
J D[LV RI WKH
J D[LV RI WKH
FRPPHQGHGE
RPPHQGHGE
$OORWKHUOHV
$OORWKHUO
T
HUFPRU
HUFP
DUH FRQVLGHU
DUH FRQVLGHU
LVHDVH DVFLW
LVHDVH DVF
LQIODPPDWRU\
LQIODPPDWRU\
&7 RU 05,
&7 RU 05,
VLRQVWKDWKDYH
VLRQVWKDWKDY
RQPHDVXUD
RQPHDVX
FF
)RU &7
)RU &
LPDJ
PD
SU
SU




6

3DJH

9HUVLRQ'DWH

,IDWDUJHWOHVLRQEHFRPHVYHU\VPDOOVRPHUDGLRORJLVWVLQGLFDWHWKDWLWLV
WRR VPDOO WR PHDVXUH  ,I WKH OHVLRQ LV DFWXDOO\ VWLOO SUHVHQW D GHIDXOW
PHDVXUHPHQWRIFPVKRXOGEHDSSOLHG,IWKHUDGLRORJLVWEHOLHYHVWKH
OHVLRQKDVJRQHDGHIDXOWPHDVXUHPHQWRIFPVKRXOGEHUHFRUGHG


2EMHFWLYH6WDWXVDW(DFK'LVHDVH(YDOXDWLRQ

2EMHFWLYH 6WDWXV LV WR EH UHFRUGHG DW HDFK HYDOXDWLRQ $OO PHDVXUDEOH OHVLRQV XS WR D
PD[LPXPRIOHVLRQVSHURUJDQOHVLRQVLQWRWDOUHSUHVHQWDWLYHRIDOOLQYROYHGRUJDQV
VKRXOGEHLGHQWLILHGDVWDUJHWOHVLRQVDWEDVHOLQH$OORWKHUOHVLRQVRUVLWHVRIGLVHDVH
LQFOXGLQJDQ\PHDVXUDEOHOHVLRQVRYHUDQGDERYHWKHWDUJHWOHVLRQVVKRXOGEHLGHQWLILHG
DVQRQWDUJHWOHVLRQV0HDVXUHPHQWVPXVWEHSURYLGHGIRUWDUJHWPHDVXUDEOHOHVLRQV
ZKLOH SUHVHQFH RU DEVHQFH PXVW EH QRWHG IRU QRQWDUJHW PHDVXUDEOH DQG QRQ
PHDVXUDEOHGLVHDVH
)RUVWXGLHVWKDWXVHGLVHDVHSURJUHVVLRQDVDQHQGSRLQWZKROHERG\VFDQQLQJDWVSHFLILF
LQWHUYDOV LV QHFHVVDU\ WR GHWHUPLQH WKDW SURJUHVVLRQ LV 127 SUHVHQW RXWVLGH RI WKH
³WDUJHW´DUHDV7KHUHIRUHLQWKHVHVWXGLHVLWLVQRWDFFHSWDEOHWRLPDJHRQO\WKH³WDUJHW´
DUHDVRIWKHERG\LQIROORZXSVFDQV)RUVWXG\VSHFLILFLPDJLQJUHTXLUHPHQWVVHHWKH
6WXG\&DOHQGDULQ6HFWLRQ
D
&RPSOHWH 5HVSRQVH &5  &RPSOHWH GLVDSSHDUDQFH RI DOO WDUJHW DQG QRQ
WDUJHW OHVLRQV ZLWK WKH H[FHSWLRQ RI O\PSK QRGHV PHQWLRQHG EHORZ  1R QHZ
OHVLRQV  1R GLVHDVH UHODWHG V\PSWRPV  $Q\ O\PSK QRGHV ZKHWKHU WDUJHW RU
QRQWDUJHWPXVWKDYHUHGXFWLRQLQVKRUWD[LVWRFP$OOGLVHDVHPXVWEH
DVVHVVHGXVLQJWKHVDPHWHFKQLTXHDVEDVHOLQH
E
3DUWLDO 5HVSRQVH 35 $SSOLHV RQO\ WR SDWLHQWV ZLWK DW OHDVW RQH PHDVXUDEOH
OHVLRQ *UHDWHU WKDQ RU HTXDO WR  GHFUHDVH XQGHU EDVHOLQH RI WKH VXP RI
DSSURSULDWH GLDPHWHUV RI DOO WDUJHW PHDVXUDEOH OHVLRQV  1R XQHTXLYRFDO
SURJUHVVLRQRIQRQPHDVXUDEOHGLVHDVH1RQHZOHVLRQV$OOWDUJHWPHDVXUDEOH
OHVLRQVPXVWEHDVVHVVHGXVLQJWKHVDPHWHFKQLTXHVDVEDVHOLQH
F
6WDEOH'RHVQRWTXDOLI\IRU&5353URJUHVVLRQRU6\PSWRPDWLF'HWHULRUDWLRQ
$OOWDUJHWPHDVXUDEOHOHVLRQVPXVWEHDVVHVVHGXVLQJWKHVDPHWHFKQLTXHVDV
EDVHOLQH
G
3URJUHVVLRQ2QHRUPRUHRIWKHIROORZLQJPXVWRFFXULQFUHDVHLQWKHVXP
RI DSSURSULDWH GLDPHWHUV RI WDUJHW PHDVXUDEOH OHVLRQV RYHU VPDOOHVW VXP
REVHUYHG RYHU EDVHOLQH LI QR GHFUHDVH GXULQJ WKHUDS\ XVLQJ WKH VDPH
WHFKQLTXHV DV EDVHOLQH DV ZHOO DV DQ DEVROXWH LQFUHDVH RI DW OHDVW  FP
8QHTXLYRFDOSURJUHVVLRQRIQRQPHDVXUDEOHGLVHDVHLQWKHRSLQLRQRIWKHWUHDWLQJ
SK\VLFLDQDQH[SODQDWLRQPXVWEHSURYLGHG$SSHDUDQFHRIDQ\QHZOHVLRQVLWH
'HDWK GXH WR GLVHDVH ZLWKRXW SULRU GRFXPHQWDWLRQ RI SURJUHVVLRQ DQG ZLWKRXW
V\PSWRPDWLFGHWHULRUDWLRQVHH6HFWLRQH
1RWHVUHJDUGLQJQHZOHVLRQV)'*3(7LPDJLQJFDQFRPSOHPHQWUHJXODUVFDQV
LQLGHQWLI\LQJQHZOHVLRQVDFFRUGLQJWRWKHIROORZLQJDOJRULWKP


1HJDWLYH)'*3(7DWEDVHOLQHZLWKDSRVLWLYH)'*3(7DWIROORZXSLV
DVLJQRISURJUHVVLRQEDVHGRQDQHZOHVLRQ

1R )'*3(7 DW EDVHOLQH DQG D SRVLWLYH )'*3(7 DW IROORZXS
FRUUHVSRQGLQJ WR D SRWHQWLDO QHZ VLWH RI GLVHDVH PXVW KDYH D
FRQILUPDWLRQE\DQDWRPLFDODVVHVVPHQWHJ&705,[UD\DVQHZVLWH
RIGLVHDVHWREHFRQVLGHUHGSURJUHVVLYHGLVHDVH,QVXFKDFDVH WKH
GDWHRISURJUHVVLYHGLVHDVHZLOOEHWKHGDWHRIWKHLQLWLDODEQRUPDO)'*
3(7
S WR D
WR D
RUJDQV
RUJDQV
RIGLVHDVH
GLVHDV
EHLGHQWLILHG
EHLGHQWLILH
VXUDEOHOHVLRQ
VXUDEOHOHVLRQ
XUDEOH DQG
DEOH DQG
ERG\VFDQQLQJ
RG\VFDQQLQ
27 SUHVHQW R
7 SUHVHQ
DEOHWRLPDJH
DEOHWRLPDJH
FLPDJLQJUHT
LPDJLQJUH
 GLVDSSHDUDQ
GLVDSSHDUDQ
O\PSK QRGHV
\PSK Q
WRPV
RPV
$Q\ O\
$Q\
LQ VKRUWD[LVW
KRUWD[LV
QLTXHDVEDVH
LTXHDVEDVH
$SSOLHV RQO\ W
$SSOLHV RQO\
U HTXDO WR 
U HTXDO WR
UV RI DOO WDU
V RI DOO WD
PHDVXUDEOH
PHDVXUDEO
DVVHVVHGXVLQ
DVVHVVHGXVLQ
HVQRWTXDOLI\
HVQRWTXDOLI\
WPHDVXUDEOH
WPHDVXUDEOH
QH
QH
URJUHVVLRQ
URJUHVVLRQ 2
EF
RI DSSURSULD
DSSURSU
REVHUYHG
REVHUYHG
WHFKQLT
WHF
8QHT
8Q
SK
SK


6

3DJH

9HUVLRQ'DWH
H
6\PSWRPDWLF GHWHULRUDWLRQ  *OREDO GHWHULRUDWLRQ RI KHDOWK VWDWXV UHTXLULQJ
GLVFRQWLQXDWLRQ RI WUHDWPHQW ZLWKRXW REMHFWLYH HYLGHQFH RI SURJUHVVLRQ  (IIRUWV
VKRXOGEHPDGHWRREWDLQREMHFWLYHHYLGHQFHRISURJUHVVLRQDIWHUGLVFRQWLQXDWLRQ
I
$VVHVVPHQW LQDGHTXDWH REMHFWLYH VWDWXV XQNQRZQ  3URJUHVVLRQ RU
V\PSWRPDWLF GHWHULRUDWLRQ KDV QRW EHHQ GRFXPHQWHG DQG RQH RU PRUH WDUJHW
PHDVXUDEOH OHVLRQV KDYH QRW EHHQ DVVHVVHG RU LQFRQVLVWHQW DVVHVVPHQW
PHWKRGVZHUHXVHG
J
2EMHFWLYHVWDWXVQRWHV


1RQPHDVXUDEOH DQG QRQWDUJHW PHDVXUDEOH GLVHDVH GR QRW DIIHFW
2EMHFWLYH6WDWXVLQGHWHUPLQDWLRQRI&5PXVWEHDEVHQWDSDWLHQWZKR
RWKHUZLVH KDV D &5 EXW ZKR KDV QRQPHDVXUDEOH RU QRQWDUJHW
PHDVXUDEOHGLVHDVHSUHVHQWRUQRWDVVHVVHGZLOOEHFODVVLILHGDVKDYLQJ
D35+RZHYHUQRQPHDVXUDEOHDQGQRQWDUJHWOHVLRQVDUHLQFOXGHGLQ
GHWHUPLQDWLRQ RI SURJUHVVLRQ LI QHZ VLWHV RI GLVHDVH GHYHORS RU LI
XQHTXLYRFDOSURJUHVVLRQRFFXUVLQWKHRSLQLRQRIWKHWUHDWLQJSK\VLFLDQ


$QREMHFWLYHVWDWXVRI35RUVWDEOHFDQQRWIROORZRQHRI&56WDEOHFDQ
IROORZ35RQO\LQWKHUDUHFDVHWKDWWXPRULQFUHDVHVWRROLWWOHWRTXDOLI\DV
SURJUHVVLRQEXWHQRXJKWKDWDSUHYLRXVO\GRFXPHQWHGGHFUHDVHQR
ORQJHUKROGV


,Q FDVHV IRU ZKLFK LQLWLDO IODUH UHDFWLRQ LV SRVVLEOH K\SHUFDOFHPLD
LQFUHDVHG ERQH SDLQ HU\WKHPD RI VNLQ OHVLRQV REMHFWLYH VWDWXV LV QRW
SURJUHVVLRQXQOHVVHLWKHUV\PSWRPVSHUVLVWEH\RQGZHHNVRUWKHUHLV
DGGLWLRQDOHYLGHQFHRISURJUHVVLRQ


/HVLRQVWKDWDSSHDUWRLQFUHDVHLQVL]HGXHWRSUHVHQFHRIQHFURWLFWLVVXH
ZLOOQRWEHFRQVLGHUHGWRKDYHSURJUHVVHG


)RU ERQH GLVHDVH GRFXPHQWHG RQ ERQH VFDQ RQO\ LQFUHDVHG XSWDNH
GRHV QRW FRQVWLWXWH XQHTXLYRFDO SURJUHVVLRQ +RZHYHU LQFUHDVH LQ WKH
VRIW WLVVXH FRPSRQHQW RI D OHVLRQ DV PHDVXUHG E\ &7 RU 05, ZRXOG
FRQVWLWXWHSURJUHVVLRQ


$SSHDUDQFH RI QHZ SOHXUDO HIIXVLRQV GRHV QRW FRQVWLWXWH XQHTXLYRFDO
SURJUHVVLRQXQOHVVF\WRORJLFDOO\SURYHQRIQHRSODVWLFRULJLQVLQFHVRPH
HIIXVLRQV DUH D WR[LFLW\ UHODWHG WR WKHUDS\ RU RWKHU PHGLFDO FRQGLWLRQV
,QFUHDVH LQ WKH VL]H RI DQ H[LVWLQJ HIIXVLRQ GRHV QRW FRQVWLWXWH
XQHTXLYRFDOSURJUHVVLRQVLQFHWKHIOXLGVWDWXVRIWKHSDWLHQWFRXOGDOWHU
WKHVL]HRIWKHHIIXVLRQ


,I&5GHWHUPLQDWLRQGHSHQGVRQDOHVLRQIRUZKLFKWKHVWDWXVLVXQFOHDU
E\ WKH UHTXLUHG WHVWV LW LV UHFRPPHQGHG WKH UHVLGXDO OHVLRQ EH
LQYHVWLJDWHGZLWKELRSV\RUILQHQHHGOHDVSLUDWH
CLOSED EFFECTIVE 07/01/2017
U
JHW
HW
PHQW
PHQ
VH GR QRW D
GR QRW D
EVHQW
VHQ DSDWLH
DSDWLH
VXUDEOH RU Q
DEOH RU
ZLOOEHFODVVLILH
OEHFODVVLILH
DUJHWOHVLRQVD
JHWOHVLRQ
HV RI GLVHDV
HV RI GLVHDV
SLQLRQRIWKHWU
QLRQRIWKH
FDQQRWIROORZ
QQRWIROORZ
KDWWXPRULQFUH
KDWWXPRULQFU
DSUHYLRXVO\GR
DSUHYLR
QLWLDO IODUH UH
QLWLDO IODUH UH
Q HU\WKHPD R
Q HU\WKHPD R
VHLWKHUV\PS
VHLWKHUV\P
HQFHRISURJUH
HQFHRISURJ
DWDSSHDUWRLQ
DWDSSHDUWR
EHFRQVLGHUHG
EHFRQVLGHUHG
U ERQH GLVHDV
U ERQH GLVHDV
GRHV QRW FRQV
GRHV QRW FRQV
VRI
VR W WLVVXH
W WLVVXH
I
FRQVWLWXWH
FRQVWLWXWH

$SSH
$SS
SU
SU


6

3DJH

9HUVLRQ'DWH

%HVW5HVSRQVH

7KLVLVFDOFXODWHGIURPWKHVHTXHQFHRIREMHFWLYHVWDWXVHV

D
&5  7ZR RU PRUH REMHFWLYH VWDWXVHV RI &5 D PLQLPXP RI IRXU ZHHNV DSDUW
GRFXPHQWHGEHIRUHSURJUHVVLRQRUV\PSWRPDWLFGHWHULRUDWLRQ

E
357ZRRUPRUHREMHFWLYHVWDWXVHV RI35 RUEHWWHUDPLQLPXPRIIRXUZHHNV
DSDUW GRFXPHQWHG EHIRUH SURJUHVVLRQ RU V\PSWRPDWLF GHWHULRUDWLRQ EXW QRW
TXDOLI\LQJDV&5

F
8QFRQILUPHG&52QHREMHFWLYHVWDWXVRI&5GRFXPHQWHGEHIRUHSURJUHVVLRQRU
V\PSWRPDWLFGHWHULRUDWLRQEXWQRWTXDOLI\LQJDV&5RU35

G
8QFRQILUPHG352QHREMHFWLYHVWDWXVRI35GRFXPHQWHGEHIRUHSURJUHVVLRQRU
V\PSWRPDWLFGHWHULRUDWLRQEXWQRWTXDOLI\LQJDV&535RUXQFRQILUPHG&5
H
6WDEOHQR UHVSRQVH  $W OHDVW RQH REMHFWLYH VWDWXV RI VWDEOHQR UHVSRQVH
GRFXPHQWHG DW OHDVW  ZHHNV DIWHU UHJLVWUDWLRQ DQG EHIRUH SURJUHVVLRQ RU
V\PSWRPDWLFGHWHULRUDWLRQEXWQRWTXDOLI\LQJDVDQ\WKLQJHOVHDERYH

I
,QFUHDVLQJ GLVHDVH  2EMHFWLYH VWDWXV RI SURJUHVVLRQ ZLWKLQ  ZHHNV RI
UHJLVWUDWLRQQRWTXDOLI\LQJDVDQ\WKLQJHOVHDERYH

J
6\PSWRPDWLFGHWHULRUDWLRQ2EMHFWLYHVWDWXV RIV\PSWRPDWLFGHWHULRUDWLRQ ZLWKLQ
ZHHNVRIUHJLVWUDWLRQQRWTXDOLI\LQJDVDQ\WKLQJHOVHDERYH

K
,QDGHTXDWH DVVHVVPHQW UHVSRQVH XQNQRZQ  3URJUHVVLRQ RU V\PSWRPDWLF
GHWHULRUDWLRQ JUHDWHU WKDQ  ZHHNV DIWHU UHJLVWUDWLRQ DQG QR RWKHU UHVSRQVH
FDWHJRU\DSSOLHV


3HUIRUPDQFH6WDWXV

3DWLHQWVZLOOEHJUDGHGDFFRUGLQJWRWKH=XEURG3HUIRUPDQFH6WDWXV6FDOH

32,17
'(6&5,37,21

)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 KRXVHZRUN
RIILFHZRUN


$PEXODWRU\DQGFDSDEOHRIVHOIFDUHEXWXQDEOHWRFDUU\RXWDQ\ZRUN
DFWLYLWLHVXSDQGDERXWPRUHWKDQRIZDNLQJKRXUV


&DSDEOHRIOLPLWHGVHOIFDUHFRQILQHGWREHGRUFKDLUPRUHWKDQRI
ZDNLQJKRXUV


&RPSOHWHO\GLVDEOHGFDQQRWFDUU\RQDQ\VHOIFDUHWRWDOO\FRQILQHGWR
EHGRUFKDLU
CLOSED EFFECTIVE 07/01/2017
W
UZHHNV
UZHHNV
Q EXW QR
EXW Q W
RUHSURJUHVVLR
SURJUHVVL
WHGEHIRUHSUR
HGEHIRUHSU
5RUXQFRQILUP
RUXQFRQI
 VWDWXV RI V
VWDWXV RI
UDWLRQ DQG EH
DWLRQ DQG EH
JDVDQ\WKLQJ
VDQ\WKLQJ
XV RI SURJUH
XV RI
QJHOVHDERYH
JHOVHDERYH
MHFWLYHVWDWXV
HFWLYHVWDWXV
TXDOLI\LQJDV
TXDOLI\LQJDV
QW UHVSRQVH
QW UHVSRQ
WKDQ  ZHH
WKDQ  ZHH
UDGHGDFFRUGL
UDGHGDFFRUG
'(6&5
'(6&5
EF
)X
)




6

3DJH

9HUVLRQ'DWH

3URJUHVVLRQ)UHH6XUYLYDO

)URP GDWH RI UHJLVWUDWLRQ WR GDWH RI ILUVW GRFXPHQWDWLRQ RI SURJUHVVLRQ RU V\PSWRPDWLF
GHWHULRUDWLRQDVGHILQHGLQDERYHRUGHDWKGXHWRDQ\FDXVH3DWLHQWVODVWNQRZQWREH
DOLYHZLWKRXWUHSRUWRISURJUHVVLRQDUHFHQVRUHGDWGDWHRIODVWFRQWDFW


7LPHWR'HDWK

)URPGDWHRIUHJLVWUDWLRQWRGDWHRIGHDWKGXHWRDQ\FDXVH3DWLHQWVODVWNQRZQWREH
DOLYHDUHFHQVRUHGDWGDWHRIODVWFRQWDFW



67$7,67,&$/&216,'(5$7,216


$FFUXDO*RDOV
7KLVVWXG\ ZLOO LQLWLDOO\EH RSHQWROLPLWHGLQVWLWXWLRQVZLWKDQH[SHFWHGDFFUXDO RI
HOLJLEOHDQGHYDOXDEOHSDWLHQWVLQWKH3KDVH,3RUWLRQRIWKHWULDO7KH3KDVH,,3RUWLRQRI
WKHWULDOZLOOEHRSHQWRDODUJHUJURXSRIOLPLWHGLQVWLWXWLRQV3DWLHQWVWUHDWHGRQWKH3KDVH
, SRUWLRQ RI WKH WULDO ZLOO QRW EH LQFOXGHG LQ WKH 3KDVH ,, WULDO:H HVWLPDWH WKH PHGLDQ
VXUYLYDORISDWLHQWVZLWKQHZO\GLDJQRVHGPHWDVWDWLFSDQFUHDWLFDGHQRFDUFLQRPDWUHDWHG
ZLWK P)2/),5,12; DV  PRQWKV LQ D FRRSHUDWLYH JURXS VHWWLQJ ,Q D 3KDVH ,,
UDQGRPL]HGVWXG\ ZHH[SHFWWKH LQYHVWLJDWLRQDO DUPWRLQFUHDVHVXUYLYDO E\ DWOHDVW 
PRQWKV +5  WR  PRQWKV IRU UHVXOWV WR EH FRQVLGHUHG FOLQLFDOO\ ZRUWKZKLOH IRU D
VXEVHTXHQW 3KDVH ,,, VWXG\ %DVHG RQ WKHVH HVWLPDWHV ZH ZLOO DFFUXH  HOLJLEOH
SDWLHQWVLQHDFKDUP7KH3KDVH,,SRUWLRQRIWKHVWXG\ZLOOUHTXLUHDSSUR[LPDWHO\
\HDUVRIDFFUXDO\HDUVRIIROORZXSW\SHHUURURIDQGSRZHU

$VVXPLQJ D  LQHOLJLELOLW\ UDWH  SDWLHQWV ZLOO EH DFFUXHG WR \LHOG  HOLJLEOH
SDWLHQWVIRUWKH3KDVH,SRUWLRQRIWKHWULDODQGSDWLHQWVZLOOEHDFFUXHGWR\LHOG
HOLJLEOH SDWLHQWV IRU WKH 3KDVH ,, SRUWLRQ RI WKH WULDO %DVHG RQ 6 DQG 6 LW LV
DQWLFLSDWHGWKDWDFFUXDOZLOOEHDSSUR[LPDWHO\SDWLHQWVSHUPRQWKIURP6:2*6:2*
YLJRURXVO\PRQLWRUVDFFUXDORIRQJRLQJVWXGLHV,IWKHDFFUXDOUDWH WRWKLVVWXG\ LVOHVV
WKDQ  RI SURMHFWHG DIWHU RQH \HDU FRQVLGHUDWLRQ ZLOO EH JLYHQ WR HDUO\
FORVXUH7KLVGHFLVLRQZRXOGEHPDGHLQFRQMXQFWLRQZLWK1&,VWDII


3KDVH,%5XQ,Q

6HFWLRQSURYLGHVWKHGHWDLOVRIWKHVWXG\GHVLJQIRUWKH3KDVH,3RUWLRQRIWKHVWXG\
7KH3KDVH,3RUWLRQZLOOEHDOLPLWHGGRVHGHHVFDODWLRQ7REHHYDOXDEOHSDWLHQWVPXVW
KDYHUHFHLYHGIXOO3(*3+GRVHLQ&\FOH
7KHSULPDU\REMHFWLYHRIWKH3KDVH,3RUWLRQZLOOEHWRGHWHUPLQHWKH07'RI3(*3+
XVHG LQ FRPELQDWLRQ ZLWK P)2/),5,12; LQ SDWLHQWV ZLWK QHZO\ GLDJQRVHG PHWDVWDWLF
SDQFUHDWLFDGHQRFDUFLQRPD7KHUHJLPHQZLOOEHFRQVLGHUHGVDIHDQGWKHRSWLPDOGRVH
GHWHUPLQHG LI WKH GRVHOLPLWLQJ WR[LFLW\ UDWH LV   ,Q WKH XQOLNHO\ HYHQW RI ! 
3(*3+WR[LFLWLHVDWWKHHQGRIWKHWKLUGDQGILQDOGRVHOHYHOWKHVWXG\ZLOOEHSODFHGRQ
KROGSHQGLQJGLVFXVVLRQRIIXUWKHUGRVHGHHVFDODWLRQDQGDSURWRFRODPHQGPHQW

3ULRUWRLPSOHPHQWDWLRQRIWKH3KDVH,,3RUWLRQDWHPSRUDU\FORVXUHZLOORFFXULQRUGHUWR
DVVHVVGRVHDQGWRHYDOXDWHWKHVDIHW\SURILOHPRUHIXOO\


3KDVH,,7ULDO

7KHSULPDU\DQDO\VLVRIRYHUDOOVXUYLYDOZLOOEHFRQGXFWHGLQDOOHOLJLEOHSDWLHQWVDFFRUGLQJ
WR WKH LQWHQWWRWUHDW SULQFLSOH XVLQJ WKH ORJUDQN WHVW 7KH ILQDO DQDO\VLV ZLOO WDNH SODFH
QRZQWREH
ZQWR
KDQH[SHFWHG
DQH[SHFWHG
WKHWULDO7KH
KHWULDO7K
LRQV3DWLHQWV
RQV3DWLHQWV
KDVH ,, WULDO:
H ,, WULDO:
WDWLFSDQFUHDWL
DWLFSDQFUHDW
RRSHUDWLYH JU
RRSHUDW
WLRQDO DUPWR
RQDO DUPWR
OWV WR EH FRQV
WV WR EH FRQV
RQ WKHVH HVWL
RQ WKHVH HVWL
VH,,SRUWLRQRI
H,,SRUWLRQR
ZXSW\SHH
XSW\SH
\ UDWH 
UDWH  S
RUWLRQRIWKHWU
RUWLRQRIWKH
3KDVH ,, SRUW
3KDVH ,, SRU
DOZLOOEHDSSU
DOZLOOEHDS
VDFFUXDORIR
VDFFUXDORIR
SURMHFWHG DIW
SURMHFWHG DI
GHFLVLRQZRXOG
GHFLVLRQZR
,%5XQ,Q
5XQ,
HFWLRQ
HFWLRQ SUR
D
7KH3KDVH,
7KH3KDVH
KDYH
KDYH UHFHLY
UHFHL
7KHS
7KHS
XVH
XVH


6

3DJH

9HUVLRQ'DWH
XSRQWKHREVHUYDWLRQRIDSSUR[LPDWHO\GHDWKV$QLQWHULPDQDO\VLVZLOOEHSHUIRUPHG
ZKHQRQHWKLUGRIWKHHYHQWVDSSUR[LPDWHO\GHDWKVKDYHEHHQREVHUYHGDQWLFLSDWHG
WR RFFXU ZKHQ DSSUR[LPDWHO\  RI DFFUXDO LV UHDFKHG (YLGHQFH VXJJHVWLQJ HDUO\
WHUPLQDWLRQ ZRXOG FRQVLVW RI UHMHFWLRQ DW D RQHVLGHG  OHYHO RI WKH WHVW IRU WKH
DOWHUQDWLYHK\SRWKHVLVKD]DUGUDWLRIRURYHUDOOVXUYLYDO

6HFRQGDU\HQGSRLQWVLQFOXGHSURJUHVVLRQIUHHVXUYLYDOUHVSRQVHUDWHDQGWR[LFLW\:LWK
HOLJLEOHSDWLHQWVLQHDFKDUPSURJUHVVLRQIUHHVXUYLYDODWDSDUWLFXODUWLPHSRLQWDQG
UDWHVRIUHVSRQVHDQGRIVSHFLILFWR[LFLWLHVFDQEHHVWLPDWHGWRZLWKLQZLWK
FRQILGHQFH$Q\WR[LFLW\RFFXUULQJZLWKDWOHDVWDSUREDELOLW\LVKLJKO\OLNHO\!
FKDQFHWREHVHHQDWOHDVWRQFH

7KUHH LQWHULP DQDO\VHV ZLOO EH SHUIRUPHG WR PRQLWRU WKH LQFLGHQFH RI WKURPERHPEROLF
7( HYHQWV ZKHQ DSSUR[LPDWHO\   DQG  SDWLHQWV KDYH FRPSOHWHG  F\FOHV RI
WUHDWPHQW  6XIILFLHQW HYLGHQFH VXJJHVWLQJ WKDW WKH LQFLGHQFH RI 7( HYHQWV LQ WKH
H[SHULPHQWDO DUP LV JUHDWHU WKDQ WKH UDWH LQ WKH FRQWURO DUP ZLOO EH WDNHQ WR EH DQ
REVHUYHGRGGVUDWLRRIRUJUHDWHUIRU7(HYHQWVE\DUP,IWKLVRXWFRPHLVREVHUYHG
WKHVWXG\ZLOOEHKDOWHGWHPSRUDULO\DQGHYDOXDWHGE\WKHLQGHSHQGHQW'DWDDQG6DIHW\
0RQLWRULQJ &RPPLWWHH '60&  7KLV UXOH \LHOGV DQ DSSUR[LPDWH  FKDQFH RI
VXVSHQGLQJWKHVWXG\XQGHUDWUXH7(HYHQWUDWHRILQERWKDUPVDFKDQFHRI
VWRSSLQJ XQGHU WUXH 7( HYHQW UDWHV RI  LQ WKH FRQWURO DUP DQG  LQ WKH
H[SHULPHQWDODUPDQGFKDQFHRIVWRSSLQJXQGHUWUXH7(HYHQWUDWHVRILQWKH
FRQWURODUPDQGLQWKHH[SHULPHQWDODUP

7KHILUVWRIWKHVHWKUHHLQWHULP7(HYHQWDQDO\VHVZDVSHUIRUPHGLQ0D\$PRQJ
WKHILUVWSDWLHQWVFRPSOHWLQJDWOHDVWF\FOHVRIWUHDWPHQWZHREVHUYHGHLJKWYHUVXV
WZRWKURPERHPEROLFHYHQWV*UDGHRFFXUULQJDQ\F\FOHLQWKH3(*3+DUPYHUVXV
WKHFRQWURODUP25 &,+RZHYHUDKLJKHUWKDQH[SHFWHG7(HYHQW
LQFLGHQFHLQWKH 3(*3+DUPKDG SUHYLRXVO\ EHHQUHFRJQL]HGWKURXJK RQJRLQJGDWD
PRQLWRULQJ DQG SURSK\ODFWLF DGPLQLVWUDWLRQ RI ORZ PROHFXODU ZHLJKW KHSDULQ /0:+
(QR[DSDULQZDVLQVWLWXWHGLQ)HEUXDU\7KXVIXWXUHLQWHULPDQDO\VHVWRPRQLWRU
7(HYHQWLQFLGHQFHE\WUHDWPHQWDUPZLOOEHSHUIRUPHGZKHQDSSUR[LPDWHO\DQG
SDWLHQWVHQUROOHGDIWHU)HEUXDU\KDYHFRPSOHWHGF\FOHVRIWUHDWPHQW

$VLQJOHVDIHW\LQWHULPDQDO\VLVWRFRPSDUHWR[LFLW\UDWHDFURVVWUHDWPHQWDUPVZLOODOVR
EH SHUIRUPHGDIWHUDWOHDVWSDWLHQWV LQHDFK DUPKDYHFRPSOHWHGWKHLUVHFRQG
WUHDWPHQW F\FOH 7R[LFLWLHV LQFOXGHG LQ WKLV DQDO\VLV DUH GHILQHG LQ 6HFWLRQ  ,I ZH
REVHUYHVXIILFLHQWHYLGHQFHWRVXJJHVWWKDWWKHLQFLGHQFHRIWR[LFLWLHVLQWKHH[SHULPHQWDO
DUPLVWLPHVKLJKHUWKDQWKDWLQWKHFRQWURODUPWKHVWXG\ZLOOEHKDOWHGWHPSRUDULO\
DQGHYDOXDWHGE\WKH'60&6XIILFLHQWHYLGHQFHZLOOEHWDNHQWREHDQREVHUYHGRGGV
UDWLRRIRUJUHDWHUIRUWR[LFLW\HYHQWVLQWKHH[SHULPHQWDOFRPSDUHGWRWKHFRQWURODUP
7KHSUREDELOLW\RIVXVSHQGLQJWKHWULDODFFRUGLQJWRWKLVVWRSSLQJUXOHXQGHUYDULRXVWUXH
GDWDVFHQDULRVZDVHVWLPDWHGIURP0RQWH&DUORVLPXODWLRQVSHUVFHQDULR7KHVH
SUREDELOLW\HVWLPDWHVVKRZWKDWWKHUHLVDFKDQFHRIVXVSHQGLQJWKHVWXG\XQGHUD
WUXHWR[LFLW\HYHQWUDWHRILQERWKDUPVQXOOK\SRWKHVLVEXWWKDWWKHVWXG\LVOLNHO\WR
EHVXVSHQGHGZKHQWKHWUXHWR[LFLW\HYHQWUDWHLQWKHH[SHULPHQWDODUPLVWLPHVWKDW
LQWKHFRQWURODUPIRUH[DPSOHFKDQFH XQGHUWUXHWR[LFLW\ HYHQWUDWHVRILQ
FRQWURODUPDQGLQH[SHULPHQWDODUPFKDQFHXQGHUWUXHWR[LFLW\UDWHVRILQ
FRQWURODUPDQGLQH[SHULPHQWDODUP

7UDQVODWLRQDO0HGLFLQH

7KHSODQQHGDFFUXDOLVHOLJLEOHSDWLHQWVWRWKH3KDVH,,SRUWLRQRIWKHFOLQLFDOVWXG\
3UHYLRXV6:2*SDQFUHDWLFFDQFHUWULDOV6DQG6KDGVSHFLPHQVXEPLVVLRQ
UDWHV RI  DQG  UHVSHFWLYHO\ %DVHG RQ WKHVH WULDOV ZH H[SHFW DW OHDVW 
VXEPLVVLRQRIDUFKLYDOWLVVXHZKLFKLVDSSUR[LPDWHO\VDPSOHVIRUHYDOXDWLRQRI+$
LPPXQRKLVWRFKHPLVWU\,+&ZLOOEHFRQYHUWHGWRKLJKRUJUHDWHUYHUVXVORZRU
,WLVH[SHFWHGWKDWLQWKLVSRSXODWLRQDSSUR[LPDWHO\RIFDVHVZLOOIDOOLQWRWKHµKLJK¶
CLOSED EFFECTIVE 07/01/2017
:LWK
WK
WDQG
DQ
ZLWK
LWK
HO\!
\!
RI WKURPERHPE
KURPERHP
PSOHWHG  F\
SOHWHG  F\
RI 7( HYHQW
RI 7( HYHQ
P ZLOO EH WDNH
ZLOO EH WDNH
,IWKLVRXWFRP
WKLVRXWFR
LQGHSHQGHQW
LQGHSHQGHQW
Q DSSUR[LPDWH
DSSUR[LPD
LQERWKDU
LQERWKDU
WKH FRQWURO D
H FRQWURO
XQGHUWUXH7(
XQGHUWUXH7(
DQDO\VHVZDV
DQDO\VHVZDV
WF\FOHVRIW
F\FOHVRIW
RFFXUULQJ
RFFXUULQJ


 +R
+
PKDG SUHYLRX
PKDG SUHY
F DGPLQLVWUDWLR
DGPLQLVWUDWLR
GLQ)HEUXDU\
GLQ)HEUXD
WUHDWPHQWDUP
UHDWPHQWDUP
U )HEUXDU\
)HEUXDU\
QWHULPDQDO\VL
QWHULPDQDO\V
DIWHUDWOHDVW
DIWHUDWOHD
\FOH 7R[LFLWLH
\FOH 7R[LFLWLH
VXIILFLHQWHYLGH
XIILFLHQWHYL
WLPHVKLJ
WLPHVKLJ
HYDOXDWHGE\
HYDOXDWHGE\
WLRRIRUJ
WLRRI
7KHSUREDELOL
7KHSUREDE
GDWDVFHQD
GDWDVFHQD
SUREDELO
SUREDELO
WUXHWR
WUXHWR
EH
EH
L


6

3DJH

9HUVLRQ'DWH
FDWHJRU\6XUYLYDOLVK\SRWKHVL]HGWREHEHWWHULQWKRVHZLWKORZ+$E\,+&:LWKWKLV
VDPSOHVL]HWKHUHLVORZSRZHUWRDVVHVVWKHSURJQRVWLFYDOXHRI,+&LQWKHFRQWUROJURXS
DORQH)RUH[DPSOHXQGHUWKHK\SRWKHVLVWKDWPHGLDQVXUYLYDOLVPRQWKVLQWKHFRQWURO
SRSXODWLRQ LI WKH +5 EHWZHHQ ORZ DQG KLJK ,+& LV  FRUUHVSRQGLQJ WR PHGLDQV RI
DSSUR[LPDWHO\DQGPRQWKVLQWKHKLJKDQGORZJURXSVUHVSHFWIXOO\WKHSRZHUZRXOG
RQO\EHEDVHGRQDW\SHRQHHUURU,WLVRIVSHFLDOLQWHUHVWWRH[SORUHZKHWKHU
WUHDWPHQW ZLWK 3(*3+ VHOHFWLYHO\ LPSURYHV RXWFRPH LQ WKRVH ZLWK KLJK +$ 7KLV
FRUUHVSRQGV WR DQ LQWHUDFWLRQ EHWZHHQ ,+& OHYHO DQG WUHDWPHQW HIIHFW  8QGHU WKH
DOWHUQDWLYH LI ZH DVVXPH WKDW DOO RI WKH WUHDWPHQW HIIHFW RFFXUV LQ WKH KLJK +$ JURXS
FRUUHVSRQGLQJWRPHGLDQVXUYLYDOLQWKHH[SHULPHQWDODUPRIPRQWKVLQWKHKLJKDQG
PRQWKVLQWKHORZWKLVWUDQVODWHVLQWRDSSUR[LPDWHO\DQLQWHUDFWLRQKD]DUGUDWLRRI
ZKLFKFDQEHGHWHFWHG ZLWKOHVVWKDQ SRZHU7KXVWKHVH DQDO\VHV ZLOO EHKLJKO\
H[SORUDWRU\LQQDWXUH
)RUWKHDVVHVVPHQWRIFLUFXODWLQJ+$OHYHOVZHDQWLFLSDWHWKDWZHZLOOKDYHPRUHWKDQ
VXEPLVVLRQRIEORRGVDPSOHVIRUDWOHDVWWKHEDVHOLQHDQGKRXUGUDZVZLWKVRPH
GURS RII DW ODWHU WLPH SHULRGV :H ZLOO DSSURDFK WKH DQDO\VLV RI WKHVH GDWD LQ VHYHUDO
ZD\V  ,QLWLDOO\ ZH ZLOO DVVHVV WKH GLVWULEXWLRQV RI WKHVH DVVD\V ERWK DW EDVHOLQH DQG
EHWZHHQ EDVHOLQH DQG WKH  KRXU GUDZ $Q LQFUHDVH LV +$ LV H[SHFWHG WR UHIOHFW D
VXFFHVVIXOWDUJHWEXWKRZLWLVLQIOXHQFHGE\WKHEDVHOLQHYDOXHZLOOQHHGWREHHYDOXDWHG
DQGWKHYDULDELOLW\RIWKHVHPHDVXUHVLVQRWZHOONQRZQ:HZLOOHYDOXDWHFLUFXODWLQJOHYHOV
DVSRWHQWLDOSURJQRVWLFRUSUHGLFWLYHYDOXHVIRURYHUDOODQGSURJUHVVLRQIUHHVXUYLYDOXVLQJ
&R[UHJUHVVLRQ$VZLWKWKHGLVFXVVLRQVUHODWHGWR,+&LWLVDQWLFLSDWHGWKDWSRZHUPD\
EHSRRUDQGWKDWWKHVHDQDO\VHVZLOOEHH[SORUDWRU\

&$ OHYHOV ZLOO EH PHDVXUHG SUHVWXG\ DQG HYHU\  ZHHNV GXULQJ WKH VWXG\
3HUFHQWDJHGHFUHDVHLQ&$OHYHOVIURPEDVHOLQHDQGWLPHWRPD[LPXPGHFUHDVHLQ
&$ ZLOO EH H[DPLQHG LQ GHVFULSWLYH DQDO\VHV 'HFUHDVH LQ &$  OHYHOV ZLOO EH
GHILQHG DV KLJK   GHFUHDVH YHUVXV ORZ   GHFUHDVH ,W LV H[SHFWHG WKDW
DSSUR[LPDWHO\RIFDVHVZLOOIDOOLQWRWKHµKLJK¶FDWHJRU\6XUYLYDODQGUHVSRQVHUDWHV
DUHK\SRWKHVL]HGWREHEHWWHULQSDWLHQWVZLWKKLJKSHUFHQWDJHGHFUHDVHLQ&$OHYHOV
:LWKWKLVVPDOOVDPSOHVL]HWKHUHLVORZVWDWLVWLFDOSRZHUWRDVVHVVWKHSURJQRVWLFYDOXH
RI &$ LQ WKH FRQWURO JURXS DORQH )RU H[DPSOH XQGHU WKH K\SRWKHVLV WKDW PHGLDQ
VXUYLYDOLVPRQWKVLQWKHFRQWUROSRSXODWLRQLIWKH+5EHWZHHQKLJKDQGORZFKDQJHLQ
&$LVFRUUHVSRQGLQJWRPHGLDQVRIDSSUR[LPDWHO\DQGPRQWKVLQWKHKLJK
DQGORZJURXSVUHVSHFWLYHO\WKHSRZHUZRXOGRQO\EHEDVHGRQDW\SHRQH
HUURU7KXVWKHVHDQDO\VHVZLOOEHH[SORUDWRU\LQQDWXUH


'DWDDQG6DIHW\0RQLWRULQJ

7KH'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHHZLOORYHUVHHWKHFRQGXFWRIWKHVWXG\7KH
&RPPLWWHHFRQVLVWVRIIRXUPHPEHUVIURPRXWVLGHRIWKH6:2*6:2*PHPEHUV
QRQYRWLQJ UHSUHVHQWDWLYHV IURP WKH 1DWLRQDO &DQFHU ,QVWLWXWH 1&, DQG WKH *URXS
6WDWLVWLFLDQQRQYRWLQJ7KHPHPEHUVRIWKLV&RPPLWWHHZLOOUHFHLYHFRQILGHQWLDOUHSRUWV
HYHU\PRQWKVIURPWKH6:2*6WDWLVWLFDO&HQWHUDQGZLOOPHHWDWWKH*URXS
VELDQQXDO
PHHWLQJV DV QHFHVVDU\  7KH &RPPLWWHH ZLOO EH UHVSRQVLEOH IRU GHFLVLRQV UHJDUGLQJ
SRVVLEOHWHUPLQDWLRQDQGRUHDUO\UHSRUWLQJRIWKHVWXG\

,QDGGLWLRQWRWKHDERYH'60&UHYLHZWR[LFLW\DQGDFFUXDOPRQLWRULQJDUHGRQHURXWLQHO\
E\ WKH 6WXG\ &KDLU VWXG\ 6WDWLVWLFLDQ DQG WKH 'LVHDVH &RPPLWWHH &KDLU (QGSRLQW
PRQLWRULQJ LV GRQH E\ WKH VWXG\ 6WDWLVWLFLDQ DQG 6WXG\ &KDLU $FFUXDO UHSRUWV DUH
JHQHUDWHGZHHNO\DQGIRUPDOWR[LFLW\UHSRUWVDUHJHQHUDWHGHYHU\PRQWKV,QDGGLWLRQ
WKH6WDWLVWLFDO&HQWHU6HULRXV$GYHUVH(YHQW&RRUGLQDWRUDWWKH2SHUDWLRQV2IILFH6$(
3K\VLFLDQ5HYLHZHUDQG6WXG\&KDLUPRQLWRUWR[LFLWLHVRQDQRQJRLQJEDVLV

CLOSED EFFECTIVE 07/01/2017
U
7KLVLV
HU WKH
WK
$ JURXS
$ JURXS
HKLJKDQG
KLJKD
DUGUDWLRRI
DUGUDWLRRI
V ZLOO EHKLJK
V ZLOO EHKLJK
ZHZLOOKDYHP
ZHZLOOKDYH
KRXUGUDZV
KRXUGUDZ
LV RI WKHVH G
RI WKHVH
DVVD\V ERWK
DVVD\V ERWK
 LV +$ LV H[
V +$ LV H
LQHYDOXHZLOO
QHYDOXHZLOO
ZQ:HZLOOHY
:HZLOOHY
HUDOODQGSURJ
HUDOODQGSUR
HGWR,+&LWLV
HGWR,+
RUDWRU\
UDWRU\
HVWXG\ DQG
VWXG\ DQG
HOVIURPEDVH
HOVIURPEDVH
FULSWLYH DQDO\V
FULSWLYH DQDO
DVH YHUVXV O
DVH YHUVX
ZLOOIDOOLQWRWK
ZLOOIDOOLQWRWK
WHULQSDWLHQWV
WHULQSDWLHQ
VL]HWKHUHLVO
VL]HWKHUHLVO
WURO JURXS DOR
WURO JURXS D
KVLQWKHFRQWU
KVLQWKHFRQWU
RUUHVSRQGLQJ
RUUHVSRQGLQJ
SVUHVSHFWLYHO\
VUHVSHFWLYH
VWKHVHDQDO\V
VWKHVHDQDO\
QG6DIHW\0RQ
6DIHW\0R
KH'DWDDQG6
KH'DWDDQG6
&RPPLWWHHFR
&RPPLWWHH
QRQ
QRQYRWLQJ
YRWLQJ
6WDWLVWLF
6WDWLVWLF
HYHU\
HYHU\
PH
PH


6

3DJH

9HUVLRQ'DWH

',6&,3/,1(5(9,(:

7KHUHZLOOEHQRGLVFLSOLQHUHYLHZIRUWKLVVWXG\



5(*,675$7,21*8,'(/,1(6


5HJLVWUDWLRQ7LPLQJ

3DWLHQWVPXVWEHUHJLVWHUHGSULRUWRLQLWLDWLRQRIWUHDWPHQWQRPRUHWKDQRQHZRUNLQJGD\
SULRUWRSODQQHGVWDUWRIWUHDWPHQW


6ORW5HVHUYDWLRQ3KDVH,

3DWLHQWVSODQQLQJWRHQUROORQWKLVVWXG\PXVWILUVWKDYHDVORWUHVHUYHGLQDGYDQFHRIWKH
UHJLVWUDWLRQHYHQLIWKHVLWHSODQVWRHQUROOULJKWDZD\

$OOVLWHVWDIIZLOOXVH23(1WRFUHDWHDVORWUHVHUYDWLRQ23(1LVDZHEEDVHGDSSOLFDWLRQ
DQG FDQ EH DFFHVVHG DW KWWSVRSHQFWVXRUJ RU IURP WKH 23(1 WDE RQ WKH &768
PHPEHUV¶ VLGH RI WKH ZHEVLWH DW KWWSVZZZFWVXRUJ RU IURP WKH 23(1 3DWLHQW
5HJLVWUDWLRQOLQNRQWKH 6:2*&5$:RUNEHQFK3OHDVHUHIHUWRWKH µ6ORW5HVHUYDWLRQ
4XLFN5HIHUHQFH6LWH8VHU*XLGH¶ZLWKLQWKH23(1WDERQWKH&768PHPEHUV¶ZHEVLWH
XQGHUµ7UDLQLQJDQG'HPRQVWUDWLRQ0DWHULDOV¶IRUGHWDLOHGLQVWUXFWLRQV

7KH LQGLYLGXDO PDNLQJ WKH VORW UHVHUYDWLRQ IRU WKH SDWLHQW PXVW EH SUHSDUHG WR SURYLGH
DQVZHUVWRWKHIROORZLQJTXHVWLRQV

D
,QVWLWXWLRQ&7(3,'

E
3URWRFRO1XPEHU

F
5HJLVWUDWLRQ6WHS

G
3DWLHQW,QLWLDOV

H
3DWLHQW¶V'DWHRI%LUWK

I
=,3&RGH

J
*HQGHUVHOHFWRQH
x
)HPDOH*HQGHU
x
0DOH*HQGHU

6ORWUHVHUYDWLRQVH[SLUH ZLWKLQFDOHQGDUGD\V$ ZDUQLQJHPDLO ZLOO EHVHQWKRXUV
EHIRUHWKHH[SLUDWLRQGDWH7KHUHVHUYDWLRQFDQEHUHQHZHGDQ\WLPHEHIRUHLWH[SLUHVDV
ORQJ DV DW OHDVW  VORW LV VWLOO DYDLODEOH $IWHU LW H[SLUHV \RX PXVW FUHDWH D QHZ VORW
UHVHUYDWLRQIRUWKLVSDWLHQWEHIRUH\RXFDQHQUROOWRWKLVWULDO<RXPD\DOVRZLWKGUDZ\RXU
UHVHUYDWLRQDWDQ\WLPH

23(15HJLVWUDWLRQ5HTXLUHPHQWV

7KH LQGLYLGXDO UHJLVWHULQJ WKH SDWLHQW PXVW KDYH FRPSOHWHG WKH DSSURSULDWH 6:2*
5HJLVWUDWLRQ:RUNVKHHW7KHFRPSOHWHGIRUPPXVWEHUHIHUUHGWRGXULQJWKHUHJLVWUDWLRQ
EXWVKRXOGQRWEHVXEPLWWHGDVSDUWRIWKHSDWLHQWGDWD

3DWLHQW HQUROOPHQW ZLOO EH IDFLOLWDWHG XVLQJ WKH 2QFRORJ\ 3DWLHQW (QUROOPHQW 1HWZRUN
23(123(1LVDZHEEDVHGUHJLVWUDWLRQV\VWHPDYDLODEOHRQDEDVLV7RDFFHVV
CLOSED EFFECTIVE 07/01/2017
ZRUNLQJGD\
ZRUNLQJGD
HVHUYHGLQDGY
HVHUYHGLQDG
23(1LVDZHE
3(1LVDZ
URP WKH 23(
RP WKH 2
WVXRUJ RU IU
RUJ RU IU
K3OHDVHUHIH
K3OHDVHUHI
23(1WDERQ
23(1W
V¶IRUGHWDLOHG
IRUGHWDLOHG
DWLRQ IRU WKH S
WLRQ IRU WKH S
6WHS
6WHS
QLWLDOV
QLWLDOV
LHQW¶V'DWHRI
LHQW¶V'D
=,3&RGH
3&RGH
J
*HQGH
*H
x
x
6ORW
6ORW
E


6

3DJH

9HUVLRQ'DWH
23(1WKHVLWHXVHUPXVWKDYHDQDFWLYH&7(3,$0DFFRXQWFKHFNDWKWWSVHDSSV
FWHSQFLQLKJRYLDPLQGH[MVS!DQGD
5HJLVWUDU
UROHRQHLWKHUWKH/32RUSDUWLFLSDWLQJ
RUJDQL]DWLRQURVWHU

23(1ZLOODOVRDVNDGGLWLRQDOTXHVWLRQVWKDWDUHQRWSUHVHQWRQWKH6:2*5HJLVWUDWLRQ
:RUNVKHHW7KHLQGLYLGXDOUHJLVWHULQJWKHSDWLHQWPXVWEHSUHSDUHGWRSURYLGHDQVZHUVWR
WKHIROORZLQJTXHVWLRQV

D
,QVWLWXWLRQ&7(3,'

E
3URWRFRO1XPEHU

F
5HJLVWUDWLRQ6WHS

G
7UHDWLQJ,QYHVWLJDWRU

H
&UHGLW,QYHVWLJDWRU

I
3DWLHQW,QLWLDOV

J
3DWLHQW¶V'DWHRI%LUWK

K
3DWLHQW661661LVGHVLUHGEXWRSWLRQDO'RQRWHQWHULQYDOLGQXPEHUV

L
&RXQWU\RI5HVLGHQFH

M
=,3&RGH

N
*HQGHUVHOHFWRQH
x
)HPDOH*HQGHU
x
0DOH*HQGHU

O
(WKQLFLW\VHOHFWRQH
x
+LVSDQLFRU/DWLQR
x
1RW+LVSDQLFRU/DWLQR
x
8QNQRZQ

P
0HWKRGRI3D\PHQWVHOHFWRQH
x
3ULYDWH,QVXUDQFH
x
0HGLFDUH
x
0HGLFDUHDQG3ULYDWH,QVXUDQFH
x
0HGLFDLG
x
0HGLFDLGDQG0HGLFDUH
x
0LOLWDU\RU9HWHUDQV6SRQVRUHG126
x
0LOLWDU\6SRQVRUHG,QFOXGLQJ&KDPSXV	7ULFDUH
x
9HWHUDQV6SRQVRUHG
x
6HOI3D\1R,QVXUDQFH
x
1R0HDQVRI3D\PHQW1R,QVXUDQFH
x
2WKHU
x
8QNQRZQ

Q
5DFHVHOHFWDOOWKDWDSSO\
x
$PHULFDQ,QGLDQRU$ODVND1DWLYH
x
$VLDQ
x
%ODFNRU$IULFDQ$PHULFDQ
x
1DWLYH+DZDLLDQRURWKHU3DFLILF,VODQGHU
x
:KLWH
x
8QNQRZQ
CLOSED EFFECTIVE 07/01/2017
R
QDO'RQRWH
QDO'R
HFWRQH
HFWRQH
LFRU/DWLQR
FRU/DWLQR
+LVSDQLFRU/D
+LVSDQLFRU/D
QNQRZQ
NQRZQ
0HWKRGRI3D\P
0HWKRGRI3D
x
3ULYDWH,
3ULYDWH
x
0HGLF
0HGLF
x
0HG
x
0
x


6

3DJH

9HUVLRQ'DWH

5HJLVWUDWLRQ3URFHGXUHV
D
$OOVLWHVWDIIZLOOXVH23(1WRHQUROOSDWLHQWVWRWKLVVWXG\23(1LVDZHEEDVHG
DSSOLFDWLRQDQGFDQEHDFFHVVHGDWKWWSVRSHQFWVXRUJRUIURPWKH23(1WDE
RQWKH&768PHPEHUV¶VLGHRIWKHZHEVLWHDWKWWSVZZZFWVXRUJRUIURPWKH
23(13DWLHQW5HJLVWUDWLRQOLQNRQWKH6:2*&5$:RUNEHQFK

E
3ULRUWRDFFHVVLQJ23(1VLWHVWDIIVKRXOGYHULI\WKHIROORZLQJ

x
$OOHOLJLELOLW\FULWHULDKDYHEHHQPHWZLWKLQWKHSURWRFROVWDWHGWLPHIUDPHV
DQGWKHDIILUPDWLRQRIHOLJLELOLW\RQWKH5HJLVWUDWLRQ:RUNVKHHWKDVEHHQ
VLJQHG
E\
WKH
UHJLVWHULQJ
LQYHVWLJDWRU
RU
DQRWKHU
LQYHVWLJDWRU
GHVLJQDWH6LWHVWDIIVKRXOGUHIHUWR6HFWLRQWRYHULI\HOLJLELOLW\

x
$OO SDWLHQWV KDYH VLJQHG DQ DSSURSULDWH FRQVHQW IRUP DQG +,3$$
DXWKRUL]DWLRQIRUPLIDSSOLFDEOH

F
$FFHVVUHTXLUHPHQWVIRU23(1

x
6LWH VWDII ZLOO QHHG WR EH UHJLVWHUHG ZLWK &7(3 DQG KDYH D YDOLG DQG
DFWLYH &7(3,$0 DFFRXQW 7KLV LV WKH VDPH DFFRXQW XVHU ,' DQG
SDVVZRUGXVHGIRUWKH&768PHPEHUV
ZHEVLWH

x
7R SHUIRUP UHJLVWUDWLRQV RQ 6:2* SURWRFROV \RX PXVW KDYH DQ
HTXLYDOHQW
5HJLVWUDU
UROH RQWKH6:2*URVWHU5ROHDVVLJQPHQWVDUH
KDQGOHGWKURXJK6:2*

1RWH7KH23(1V\VWHPZLOOSURYLGHWKHVLWHZLWKDSULQWDEOHFRQILUPDWLRQRIUHJLVWUDWLRQ
DQGWUHDWPHQWLQIRUPDWLRQ3OHDVHSULQWWKLVFRQILUPDWLRQIRU\RXUUHFRUGV

G
)XUWKHU LQVWUXFWLRQDO LQIRUPDWLRQ LVSURYLGHG RQ WKH 23(1 WDE RQ WKH &768
PHPEHUV¶VLGHRIWKHZHEVLWHDWKWWSVZZZFWVXRUJRUDWKWWSVRSHQFWVXRUJ
)RU DQ\ DGGLWLRQDO TXHVWLRQV FRQWDFW WKH &768 +HOS 'HVN DW  RU
FWVXFRQWDFW#ZHVWDWFRP


([FHSWLRQVWR6:2*UHJLVWUDWLRQSROLFLHVZLOOQRWEHSHUPLWWHG

D
3DWLHQWVPXVWPHHWDOOHOLJLELOLW\UHTXLUHPHQWV

E
,QVWLWXWLRQVPXVWEHLGHQWLILHGDVDSSURYHGIRUUHJLVWUDWLRQ

F
5HJLVWUDWLRQVPD\QRWEHFDQFHOOHG

G
/DWHUHJLVWUDWLRQVDIWHULQLWLDWLRQRIWUHDWPHQWZLOOQRWEHDFFHSWHG



'$7$68%0,66,216&+('8/(


'DWD6XEPLVVLRQ5HTXLUHPHQW

'DWD PXVW EH VXEPLWWHG DFFRUGLQJ WR WKH SURWRFRO UHTXLUHPHQWV IRU $// SDWLHQWV
UHJLVWHUHGZKHWKHURUQRWDVVLJQHGWUHDWPHQWLVDGPLQLVWHUHGLQFOXGLQJSDWLHQWVGHHPHG
WREHLQHOLJLEOH3DWLHQWVIRUZKRPGRFXPHQWDWLRQLVLQDGHTXDWHWRGHWHUPLQHHOLJLELOLW\
ZLOOJHQHUDOO\EHGHHPHGLQHOLJLEOH
CLOSED EFFECTIVE 07/01/2017
GWLPHIUDPHV
GWLPHIUDPH
VKHHWKDVEHH
VKHHWKDVEHH
WKHU
LQYHVWLJ
HU
LQYHVWL
ULI\HOLJLELOLW\
\HOLJLELOLW\
QVHQW IRUP D
VHQW IRUP
HG ZLWK &7(3
ZLWK &7(3
V LV WKH VDP
V LV WKH VDP
PHPEHUV
ZH
PHPEH
V RQ 6:2*
V RQ 6:2*
UROH RQWKH6:
ROH RQWKH6:
:2*
2*
URYLGHWKHVLWH
URYLGHWKHVLWH
OHDVHSULQWWKL
HDVHSULQWWK
RQDO LQIRUPDW
RQDO LQIRUPDW
HRIWKHZHEV
HRIWKHZHE
GLWLRQDO TXHVW
GLWLRQDO TXHVW
DFW#ZHVWDWFR
DFW#ZHVWDWFR
R6:2*UHJL
R6:2*UHJL
3DWLHQWVPXV
DWLHQWVPXV
,QVWLWXWLR
,QVWLWXWLR
FF
5H
5H
G
G

'$7$
'$




6

3DJH

9HUVLRQ'DWH

0DVWHU)RUPV

0DVWHU IRUPV FDQ EH IRXQG RQ WKH SURWRFRO DEVWUDFW SDJH RQ WKH 6:2* ZHEVLWH
ZZZVZRJRUJDQGZLWKWKHH[FHSWLRQRIWKHVDPSOHFRQVHQWIRUPDQGWKH5HJLVWUDWLRQ
:RUNVKHHWPXVWEHVXEPLWWHGRQOLQHYLDWKH:HEVHH6HFWLRQDIRUGHWDLOV

'DWD6XEPLVVLRQ3URFHGXUHV

D
6:2*LQVWLWXWLRQVPXVWVXEPLWGDWDHOHFWURQLFDOO\YLDWKH:HEXVLQJ0HGLGDWD
5DYHDWWKHIROORZLQJXUO

KWWSVORJLQLPHGLGDWDFRPVHOHFWORJLQ


,ISURPSWHGVHOHFWWKHµ&7(3,$0,G3¶OLQN

(QWHU\RXUYDOLGDQGDFWLYH&7(3,$0XVHULGDQGSDVVZRUG7KLVLVWKH
VDPHDFFRXQWXVHGIRUWKH&768PHPEHUV¶ZHEVLWHDQG23(1

E
<RXPD\DOVRDFFHVV5DYHYLDWKH6:2*&5$:RUNEHQFK*RWRWKH6:2*
ZHE VLWH KWWSVZRJRUJ DQG ORJRQ WR WKH 0HPEHUV $UHD XVLQJ \RXU 6:2*
5RVWHU ,' 1XPEHU DQG SDVVZRUG $IWHU \RX KDYH ORJJHG RQ FOLFN RQ
:RUNEHQFKHV WKHQ &5$ :RUNEHQFK WR DFFHVV WKH KRPH SDJH IRU WKH &5$
:RUNEHQFK DQG IROORZ WKH OLQN WR 5DYH SURYLGHG LQ WKH OHIWKDQG QDYLJDWLRQ
SDQHO

7RDFFHVVWKH&5$:RUNEHQFKWKHIROORZLQJPXVWEHGRQHLQRUGHU


<RXDUHHQWHUHGLQWRWKH6:2*5RVWHUDQGLVVXHGD6:2*5RVWHU,'
1XPEHU

<RXDUHDVVRFLDWHGDVDQLQYHVWLJDWRURU&5$51DWWKHLQVWLWXWLRQZKHUH
WKHSDWLHQWLVEHLQJWUHDWHGRUIROORZHG

<RXU :HE 8VHU $GPLQLVWUDWRU KDV DGGHG \RX DV D ZHE XVHU DQG KDV
JLYHQ \RX WKH DSSURSULDWH V\VWHP SHUPLVVLRQV WR YLHZ GDWD IRU WKDW
LQVWLWXWLRQ

)RUDVVLVWDQFHZLWKSRLQWVDQGFDOOWKH2SHUDWLRQV2IILFHDW
)RUSRLQWFRQWDFW\RXUORFDO:HE8VHU$GPLQLVWUDWRUUHIHUWRWKH:KRLVP\
:HE8VHU$GPLQLVWUDWRU"IXQFWLRQRQWKHVZRJRUJ0HPEHUVORJRQSDJH

)RUGLIILFXOWLHVZLWKWKH&5$:RUNEHQFKSOHDVHHPDLO

F
WHFKQLFDOTXHVWLRQ#FUDERUJ


'DWD6XEPLVVLRQ2YHUYLHZDQG7LPHSRLQWV

D
:,7+,1'$<62)5(*,675$7,21
6XEPLWWKHIROORZLQJ

62QVWXG\)RUP
%DVHOLQH7XPRU$VVHVVPHQW)RUP
3DWKRORJ\5HSRUWGRFXPHQWLQJPHWDVWDWLFGLVHDVH

5DGLRORJ\UHSRUWVIURPDOOVFDQVSHUIRUPHGWRDVVHVVGLVHDVHDWEDVHOLQH
CLOSED EFFECTIVE 07/01/2017
0HGLGDWD
0HGLGDWD
SDVVZRUG7
SDVVZRUG
EVLWHDQG23
VLWHDQG23
:RUNEHQFK
:RUNEHQFK *
HPEHUV $UHD
PEHUV $UHD
\RX KDYH O
\RX KDYH O
DFFHVV WKH KR
HVV WKH KR

 SURYLGHG L
YLGHG
KHIROORZLQJP
KHIROORZLQJP
RWKH6:2*
WKH6:2*
DWHGDVDQLQY
DWHGDVDQ
EHLQJWUHDWHG
EHLQJWUHDWHG
8VHU $GPLQL
8VHU $GP
RX WKH DSSUR
RX WKH DSSUR
WLRQ
WLRQ
VWDQFHZLWKSR
VWDQFHZLWKS
RLQWFRQWDFW
LQWFRQWD
E8VHU$GPLQL
E8VHU$GPLQ
)RUGLIILFXOWLH
RUGLIILFXOWL
WHFKQLFD
WHF
'DWD6XEP
'DWD6XEP
D
D


6

3DJH

9HUVLRQ'DWH
E
:,7+,1'$<62)5(*,675$7,21
6SHFLPHQVDVRXWOLQHGLQ6HFWLRQ
F
)253+$6(,3$7,(17621/<$77+((1'2)($&+:((.2)&<&/(
75($70(1721/<6HH6HFWLRQGIRUUHPDLQLQJF\FOHV
6XEPLWWKH6$GYHUVH(YHQW)RUP
G
:,7+,1'$<6$)7(5($&+&<&/(2)75($70(17
6XEPLWWKHIROORZLQJ

67UHDWPHQW)RUP
6$GYHUVH(YHQW)RUP
H
:,7+,1'$<6$)7(5($&+&$7(67HYHU\ZHHNV
5HFRUGWKH&$ODEUHVXOWVRQWKH6&$)RUPDQGVXEPLW
I
:,7+,1  '$<6 $)7(5 ($&+ ',6($6( $66(660(17 HYHU\  ZHHNV
817,/352*5(66,21
6XEPLWWKHIROORZLQJ

)ROORZ8S7XPRU$VVHVVPHQW)RUPGRFXPHQWLQJUHVXOWVRIDVVHVVPHQW

5DGLRORJ\UHSRUWVIURPDOOVFDQVXVHGWRDVVHVVGLVHDVH

J
:,7+,1'$<62)',6&217,18$7,212)75($70(17
6XEPLWWKHIROORZLQJ

2II7UHDWPHQW1RWLFH

67UHDWPHQW)RUP
6$GYHUVH(YHQW)RUP
K
:,7+,1'$<62)352*5(66,215(/$36(
6XEPLWWKHIROORZLQJ

)ROORZ8S7XPRU$VVHVVPHQW)RUP

5DGLRORJ\UHSRUWVIURPDOOVFDQVXVHGWRDVVHVVGLVHDVH

2II7UHDWPHQW1RWLFHLIWKHSDWLHQWZDVVWLOORQSURWRFROWUHDWPHQWRU)ROORZ8S
)RUP LI WKH SDWLHQW ZDV RII SURWRFRO WUHDWPHQW GRFXPHQWLQJ GDWH VLWH DQG
PHWKRGIRUGHWHUPLQLQJSURJUHVVLRQUHODSVH


CLOSED EFFECTIVE 07/01/2017
HYHU\ZHHN
HYHU\ZHH
07/
 &$
&$
)RU
)RU
6($6( $66
6($6(
E
PHQW)RUPGRF
PHQW)RUPG
PDOOVFDQVXV
PDOOVFDQVXV
62)',6&2
62)',6&2
EC
IROORZLQJ
IROORZLQJ
HDWPHQW1RWLF
HDWPHQW1RW


7UHDWPH
7UHDWP
E
6
 $G
$G
D E
K
K
:,7+
:,
D


6

3DJH

9HUVLRQ'DWH
L
$)7(5 2)) 75($70(17 (9(5<  0217+6 )25  <($56 )520
5(*,675$7,21
6XEPLWWKHIROORZLQJ

)ROORZ8S)RUP

/DWH(IIHFWV)RUPLISULRUWRWUHDWPHQWIRUSURJUHVVLRQ RUUHODSVHRU DVHFRQG
SULPDU\DQGSULRUWRQRQSURWRFROWUHDWPHQWWKHSDWLHQWH[SHULHQFHVDQ\VHYHUH
>*UDGH@ORQJWHUPWR[LFLW\WKDWKDVQRWEHHQSUHYLRXVO\UHSRUWLQJ

M
:,7+,1:((.62).12:/('*(2)'($7+
6XEPLWWKH1RWLFHRI'HDWKDQGDILQDO67UHDWPHQW)RUPLIWKHSDWLHQWZDV
VWLOO RQ SURWRFRO WUHDWPHQW RU )ROORZ8S )RUP LI WKH SDWLHQW ZDV RII SURWRFRO
WUHDWPHQWGRFXPHQWLQJGHDWKLQIRUPDWLRQ

63(&,$/,16758&7,216


&RUUHODWLYH6WXGLHVDQG%DQNLQJ

D
6SHFLPHQVPXVWEHVXEPLWWHGDWWKHIROORZLQJWLPHVVHH6HFWLRQ


$OOSDWLHQWVDWEDVHOLQH0LQLPXPRIPPSDUDIILQHPEHGGHGWLVVXH
))3( ,I EORFN LV QRW DYDLODEOH WHQ XQVWDLQHG IUHVKO\ FXW  PLFURQ
WLVVXHSRVLWLYHO\FKDUJHGVOLGHVPXVWEHVXEPLWWHGZLWKSDWKRORJ\UHSRUW
IURPGLDJQRVLVRIPHWDVWDWLFGLVHDVH,IPXOWLSOHELRSVLHVIURPGLIIHUHQW
DQDWRPLFDOORFDWLRQVDUHDYDLODEOHIURPPRVWUHFHQWELRSV\LWLVSUHIHUUHG
WKDWWLVVXHIURPSULPDU\VLWHVWFKRLFHOLYHUPHWDVWDVLVQGFKRLFHRU
OXQJPHWDVWDVLVUGFKRLFHEHVHQW7KHELRSV\PXVWFRQWDLQSDQFUHDWLF
DGHQRFDUFLQRPD


3DWLHQWVLQ3KDVH,RU$UP)2/),5,12;3(*3+RI3KDVH,,RQO\
 P/ ZKROH EORRG LQ WZR  P/ ODYHQGHU WRS .('7$ WXEHV DW
EDVHOLQHKRXUVDIWHUWKHILUVW3(*3+GRVHSULRUWR&\FOHDQG
SULRU WR &\FOH  %ORRG VDPSOHV PXVW EH FHQWULIXJHG DQG SODVPD
VHSDUDWHGLQWRIRXUFKLOOHGP/FU\RYLDOVSULRUWRVWRUDJHRUVKLSSLQJ
3ODVPDVDPSOHVPXVWEHIUR]HQDW&RUEHORZDIWHUSUHSDUDWLRQDQG
FDQEHEDWFKVKLSSHGRQGU\LFH

E
6SHFLPHQFROOHFWLRQDQGVXEPLVVLRQLQVWUXFWLRQVFDQEHDFFHVVHGRQWKH6:2*
6SHFLPHQ6XEPLVVLRQZHESDJH
KWWSVZRJRUJ0HPEHUV&OLQLFDO7ULDOV6SHFLPHQV676SHFLPHQVDVS

F
6SHFLPHQFROOHFWLRQNLWVDUHQRWEHLQJSURYLGHGIRUWKLVVXEPLVVLRQVLWHVZLOOXVH
LQVWLWXWLRQDOVXSSOLHV


3KDVH,3RUWLRQ0DQGDWRU\&RQIHUHQFH&DOOV

$PDQGDWRU\FRQIHUHQFHFDOOZLOOWDNHSODFHHYHU\ZHHN7KHFDOOZLOOXSGDWHSDUWLFLSDQWV
RQ WKH FXUUHQW VWDWXV RI WKH WULDO DQG ZLOO LQFOXGH UHSUHVHQWDWLYHV IURP WKH VWXG\ WHDP
LQYHVWLJDWRUVIURPDOOSDUWLFLSDWLQJLQVWLWXWLRQVDQGUHSUHVHQWDWLYHVIURP+DOR]\PH$WWKLV
WLPHDQ\VHULRXVWR[LFLWLHVHQFRXQWHUHGZLOOEHGLVFXVVHGDQGDSSURSULDWHDFWLRQWDNHQ,Q
EHWZHHQ WKHVH UHJXODUO\ VFKHGXOHG FRQIHUHQFH FDOOV LQYHVWLJDWRUV ZLOO EH LQIRUPHG RI
LPSRUWDQWVWXG\GHFLVLRQVYLDHPDLO

CLOSED EFFECTIVE 07/01/2017
VHFRQG
VHFRQG
DQ\VHYHUH
Q\VHYH
)RUP LIWKHSD
LIWKHS
SDWLHQW ZDV
SDWLHQW ZDV
HIROORZLQJWLP
IROORZLQJWLP
VE
0LQLPXPRI
0LQLPXPR
QRW DYDLODEOH
QRW DYDLODEOH
KDUJHGVOLGHV
KDUJHGVOLGH
RIPHWDVWDWLF
RIPHWDVWD
RFDWLRQVDUHDY
FDWLRQVDUHD
IURPSULPDU\
IURPSULPD
WDVWDVLV
WDVWDVLVUG
UG F
RFDUFLQRPD
FDUFLQRPD
3DWLHQWVLQ3K
3DWLHQWVLQ3K
 P/ ZKR
 P/ Z
EDVHOLQ
EDVH
H
SULRU W
SULRU
VHSD
VHS
3O
3
E
E
6S
6S
F



6

3DJH

9HUVLRQ'DWH
,QVWLWXWLRQDO SDUWLFLSDWLRQ RQ WKHVH FDOOV UHTXLUHV WKH LGHQWLILFDWLRQ RI DQ LQYHVWLJDWRU
FRQWDFWDQGD&5$FRQWDFW3ULRUWRUHJLVWUDWLRQRIWKHILUVWSDWLHQWHDFKLQVWLWXWLRQPXVW
SURYLGH WKH FRQWDFW QDPHV HPDLO DGGUHVVHV DQG SKRQH QXPEHUV WR WKH 6:2*
2SHUDWLRQV2IILFH,QVWLWXWLRQVZLOOEHUHVSRQVLEOHIRUNHHSLQJWKLVLQIRUPDWLRQXSWRGDWH
DQG
PXVW
QRWLI\
WKH
VWXG\
3URWRFRO
&RRUGLQDWRU
.LPEHUO\
.DEHUOH
HPDLO
NNDEHUOH#VZRJRUJRUSKRQHRIDQ\FKDQJHV7KHLQYHVWLJDWRUDQGWKH
FRQWDFW&5$ZLOOUHFHLYHHPDLOUHPLQGHUVZLWKWKHFRQIHUHQFHFDOOLQIRUPDWLRQ



(7+,&$/$1'5(*8/$725<&216,'(5$7,216

7KHIROORZLQJPXVWEHREVHUYHGWRFRPSO\ZLWK)RRGDQG'UXJ$GPLQLVWUDWLRQUHJXODWLRQVIRUWKH
FRQGXFWDQGPRQLWRULQJRIFOLQLFDOLQYHVWLJDWLRQVWKH\DOVRUHSUHVHQWVRXQGUHVHDUFKSUDFWLFH

,QIRUPHG&RQVHQW
7KH SULQFLSOHV RI LQIRUPHG FRQVHQW DUH GHVFULEHG E\ )HGHUDO 5HJXODWRU\ *XLGHOLQHV )HGHUDO
5HJLVWHU9RO1R-DQXDU\SDUWDQGWKH2IILFHIRU3URWHFWLRQIURP5HVHDUFK
5LVNV5HSRUWV3URWHFWLRQRI+XPDQ6XEMHFWV&RGHRI)HGHUDO5HJXODWLRQV&)57KH\
PXVW EH IROORZHG WR FRPSO\ ZLWK )'$ UHJXODWLRQV IRU WKH FRQGXFW DQG PRQLWRULQJ RI FOLQLFDO
LQYHVWLJDWLRQV

,QVWLWXWLRQDO5HYLHZ
7KLV VWXG\ PXVW EH DSSURYHG E\ DQ DSSURSULDWH LQVWLWXWLRQDO UHYLHZ FRPPLWWHH DV GHILQHG E\
)HGHUDO5HJXODWRU\*XLGHOLQHV5HI)HGHUDO5HJLVWHU9RO1R-DQXDU\SDUW
DQGWKH2IILFHIRU3URWHFWLRQIURP5HVHDUFK5LVNV5HSRUWV3URWHFWLRQRI+XPDQ6XEMHFWV&RGH
RI)HGHUDO5HJXODWLRQV&)5

'UXJ$FFRXQWDELOLW\
$QLQYHVWLJDWRULVUHTXLUHGWRPDLQWDLQDGHTXDWHUHFRUGVRIWKHGLVSRVLWLRQRILQYHVWLJDWLRQDOGUXJV
DFFRUGLQJ WR SURFHGXUHV DQG UHTXLUHPHQWV JRYHUQLQJ WKH XVH RI LQYHVWLJDWLRQDO QHZ GUXJV DV
GHVFULEHGLQWKH&RGHRI)HGHUDO5HJXODWLRQV&)5

0RQLWRULQJ
7KLV VWXG\ ZLOO EH PRQLWRUHG E\ WKH &OLQLFDO 'DWD 8SGDWH 6\VWHP &'86 9HUVLRQ 
&XPXODWLYH&'86GDWDZLOOEHVXEPLWWHGTXDUWHUO\WR&7(3E\HOHFWURQLFPHDQV5HSRUWVDUH
GXH-DQXDU\$SULO-XO\DQG2FWREHU

&RQILGHQWLDOLW\
3OHDVHQRWHWKDWWKHLQIRUPDWLRQFRQWDLQHGLQWKLVSURWRFROLVFRQVLGHUHGFRQILGHQWLDODQGVKRXOG
QRWEHXVHGRUVKDUHGEH\RQGWKHSXUSRVHVRIFRPSOHWLQJSURWRFROUHTXLUHPHQWVXQWLORUXQOHVV
DGGLWLRQDOSHUPLVVLRQLVREWDLQHG


$GYHUVH(YHQW5HSRUWLQJ5HTXLUHPHQWV

D
3XUSRVH

$GYHUVH HYHQW GDWD FROOHFWLRQ DQG UHSRUWLQJ ZKLFK DUH UHTXLUHG DV SDUW RI
HYHU\FOLQLFDOWULDODUHGRQHWRHQVXUHWKHVDIHW\ RI SDWLHQWV HQUROOHG LQWKH
VWXGLHVDVZHOODVWKRVHZKRZLOOHQUROOLQIXWXUHVWXGLHVXVLQJVLPLODUDJHQWV
$GYHUVHHYHQWVDUHUHSRUWHGLQDURXWLQHPDQQHUDWVFKHGXOHGWLPHVGXULQJD
WULDO 'LUHFWLRQV IRU URXWLQH UHSRUWLQJ DUH SURYLGHG LQ 6HFWLRQ 
$GGLWLRQDOO\FHUWDLQDGYHUVHHYHQWVPXVWEHUHSRUWHGLQDQH[SHGLWHGPDQQHU
CLOSED EFFECTIVE 07/01/2017
H
JXODWLRQVIRUWK
JXODWLRQVIRUWK
HDUFKSUDFWLFH
FKSUDFWLFH
XODWRU\ *XLGH
DWRU\ *XL
HIRU3URWHFWLR
HIRU3URWHFWLR
5HJXODWLRQV
5HJXODWLRQ
FRQGXFW DQG
FRQGXFW DQG
H LQVWLWXWLRQDO
H LQVWLWXWLRQDO
HJLVWHU9RO
HJLVWHU9RO
5LVNV5HSRUWV
5LVNV5HSRUWV
LQWDLQDGHTXD
LQWDLQDGHTXD
UHTXLUHPHQWV
UHTXLUHPHQ
HGHUDO5HJXODW
GHUDO5HJXODW
EH PRQLWRUHG
EH PRQLWRUH
'86GDWDZLOO
GDWDZLO
$SULO-
$SULO-
HQWLDOLW\
QWLDOLW\
ED
HDVHQRWHWKDW
HDVHQRWHWKD
QRWEHXVHG
QRWEHXVHG R
DGGLWLRQDOS
DGGLWLRQDOS




6

3DJH

9HUVLRQ'DWH
WRDOORZIRUPRUHWLPHO\PRQLWRULQJRISDWLHQWVDIHW\DQGFDUH7KHIROORZLQJ
JXLGHOLQHVSUHVFULEHH[SHGLWHGDGYHUVHHYHQWUHSRUWLQJIRUWKLVSURWRFRO

E
5HSRUWLQJPHWKRG

7KLV VWXG\ UHTXLUHV WKDW H[SHGLWHG DGYHUVH HYHQWV EH UHSRUWHG XVLQJ WKH
&DQFHU 7KHUDS\ (YDOXDWLRQ 3URJUDP $GYHUVH (YHQW 5HSRUWLQJ 6\VWHP
&7(3$(56  &7(3
V JXLGHOLQHV IRU &7(3$(56 FDQ EH IRXQG DW
KWWSFWHSFDQFHUJRY$&7(3$(56UHSRUWPXVWEHVXEPLWWHGWRWKH6:2*
2SHUDWLRQV2IILFHHOHFWURQLFDOO\ YLD WKH&7(3$(56 :HEEDVHGDSSOLFDWLRQ
ORFDWHG
DW
KWWSFWHSFDQFHUJRYSURWRFRO'HYHORSPHQWHOHFWURQLFBDSSOLFDWLRQVDGYHUVHB
HYHQWVKWP
F
:KHQWRUHSRUWDQHYHQWLQDQH[SHGLWHGPDQQHU

6RPH DGYHUVH HYHQWV UHTXLUH KRXU QRWLILFDWLRQ UHIHU WR 7DEOH  YLD
&7(3$(56:KHQ,QWHUQHWFRQQHFWLYLW\LVGLVUXSWHGDKRXUQRWLILFDWLRQLV
WR EH PDGH WR 6:2* E\ WHOHSKRQH DW  RU E\ HPDLO DW
DGU#VZRJRUJ2QFH,QWHUQHWFRQQHFWLYLW\LVUHVWRUHGDKRXUQRWLILFDWLRQ
WKDW ZDV PDGH E\ SKRQH RU XVLQJ DGU#VZRJRUJ PXVW EH HQWHUHG
HOHFWURQLFDOO\LQWR&7(3$(56E\WKHRULJLQDOVXEPLWWHUDWWKHVLWH
:KHQWKHDGYHUVHHYHQWUHTXLUHVH[SHGLWHGUHSRUWLQJVXEPLWWKHUHSRUWZLWKLQ
WKHQXPEHURIFDOHQGDUGD\VRIOHDUQLQJRIWKHHYHQWVSHFLILHGLQ7DEOH
RUDVDSSOLFDEOH
G
2WKHUUHFLSLHQWVRIDGYHUVHHYHQWUHSRUWV

7KH6:2*2SHUDWLRQV2IILFHZLOOIRUZDUGUHSRUWVDQGGRFXPHQWDWLRQWRWKH
DSSURSULDWHUHJXODWRU\DJHQFLHVDQGGUXJFRPSDQLHVDVUHTXLUHG

$GYHUVHHYHQWVGHWHUPLQHGWREHUHSRUWDEOHWRWKH,QVWLWXWLRQDO5HYLHZ%RDUG
UHVSRQVLEOH IRU RYHUVLJKW RI WKH SDWLHQW PXVW EH UHSRUWHG DFFRUGLQJ WR ORFDO
SROLF\DQGSURFHGXUHV

H
([SHGLWHGUHSRUWLQJIRULQYHVWLJDWLRQDODJHQWV
([SHGLWHGUHSRUWLQJLVUHTXLUHGLIWKHSDWLHQWKDVUHFHLYHGDWOHDVWRQHGRVHRI
WKH LQYHVWLJDWLRQDO DJHQWV DV SDUW RI WKH WULDO 5HSRUWLQJ UHTXLUHPHQWV DUH
SURYLGHGLQ7DEOH7KHLQYHVWLJDWLRQDODJHQWXVHGLQWKH3KDVH,SRUWLRQ
RIWKHVWXG\DQGLQ$UPRIWKH3KDVH,,SRUWLRQRIWKLVVWXG\LV3(*3+,I
WKHUHLVDQ\TXHVWLRQDERXWWKHUHSRUWDELOLW\RIDQDGYHUVHHYHQWRULIRQOLQH
&7(3$(56FDQQRWEHXVHGSOHDVHWHOHSKRQHRUHPDLOWKH6$(6SHFLDOLVWDW
WKH2SHUDWLRQV2IILFHRUDGU#VZRJRUJEHIRUHSUHSDULQJWKH
UHSRUW
DWW
:2*
:2*
SOLFDWLRQ
FDWLRQ
DWW
VDGYHUVHB
VDGYHUVHB
UHIHU WR
HIHU WR 7DEOH
7D
0
HGD
HGDKRXU
KRXU

 R

UHVWRUHGD
UHVWRUHGD
DGU#VZRJRUJ
#VZRJRUJ
JLQDOVXEPLWWH
JLQDOVXEPLWWH
[SHGLWHGUHSRU
SHGLWHGUHSR
HDUQLQJRIWKH
HDUQLQJRIWKH
HHYHQWUHSRUW
HHYHQWUHSR
RQV2IILFHZLOO
QV2IILFHZLOO
WRU\DJHQFLHV
WRU\DJHQFLH
QWVGHWHUPLQHG
WVGHWHUPLQH
H IRU RYHUVLJK
 IRU RYHUVLJK
GSURFHGXUHV
GSURFHGXUHV
SHGLWHGUHSRUW
SHGLWHGUHSRU
([SHGLWHGUH
[SHGLWHGU
WKH LQYHVW
WKH LQYHVW
SURYLGH
SUR
RIWKH
RIW
WKH
WKH


6

3DJH

9HUVLRQ'DWH
7DEOH
3DWLHQWVRQWKH3KDVH,3RUWLRQDQG(DUO\3KDVH,,3RUWLRQ$UP([SHGLWHG5HSRUWLQJ
5HTXLUHPHQWVIRU$GYHUVHHYHQWVWKDW2FFXURQ6WXGLHVXQGHUDQ1RQ&7(3,1'ZLWKLQ'D\VRI
WKH/DVW$GPLQLVWUDWLRQRIWKH,QYHVWLJDWLRQDO$JHQW,QWHUYHQWLRQ
)'$5(3257,1*5(48,5(0(176)256(5,286$'9(56((9(176&)53DUW
127(,QYHVWLJDWRUV0867LPPHGLDWHO\UHSRUWWRWKHVSRQVRU1&,$1<6HULRXV$GYHUVH(YHQWVZKHWKHURU
QRWWKH\DUHFRQVLGHUHGUHODWHGWRWKHLQYHVWLJDWLRQDODJHQWVLQWHUYHQWLRQ&)5
$QDGYHUVHHYHQWLVFRQVLGHUHGVHULRXVLILWUHVXOWVLQ$1<RIWKHIROORZLQJRXWFRPHV

'HDWK

$OLIHWKUHDWHQLQJDGYHUVHHYHQW

$QDGYHUVHHYHQWWKDWUHVXOWVLQLQSDWLHQWKRVSLWDOL]DWLRQRUSURORQJDWLRQRIH[LVWLQJKRVSLWDOL]DWLRQIRU
KRXUV

$SHUVLVWHQWRUVLJQLILFDQWLQFDSDFLW\RUVXEVWDQWLDOGLVUXSWLRQRIWKHDELOLW\WRFRQGXFWQRUPDOOLIHIXQFWLRQV

$FRQJHQLWDODQRPDO\ELUWKGHIHFW

,PSRUWDQW0HGLFDO(YHQWV,0(WKDWPD\QRWUHVXOWLQGHDWKEHOLIHWKUHDWHQLQJRUUHTXLUHKRVSLWDOL]DWLRQ
PD\EHFRQVLGHUHGVHULRXVZKHQEDVHGXSRQPHGLFDOMXGJPHQWWKH\PD\MHRSDUGL]HWKHSDWLHQWRU
VXEMHFWDQGPD\UHTXLUHPHGLFDORUVXUJLFDOLQWHUYHQWLRQWRSUHYHQWRQHRIWKHRXWFRPHVOLVWHGLQWKLV
GHILQLWLRQ)'$&)5,&+($DQG,&+(
$//6(5,286DGYHUVHHYHQWVWKDWPHHWWKHDERYHFULWHULD0867EHLPPHGLDWHO\UHSRUWHGWRWKH1&,YLD
&7(3$(56ZLWKLQWKHWLPHIUDPHVGHWDLOHGLQWKHWDEOHEHORZ
+RVSLWDOL]DWLRQ
*UDGHDQG*UDGH7LPHIUDPHV
*UDGH
7LPHIUDPHV
5HVXOWLQJLQ
+RVSLWDOL]DWLRQ
KUV
&DOHQGDU'D\V
+RXU&DOHQGDU
'D\V
1RWUHVXOWLQJLQ
+RVSLWDOL]DWLRQ
KUV
1RWUHTXLUHG
127(3URWRFROVSHFLILFH[FHSWLRQVWRH[SHGLWHGUHSRUWLQJRIVHULRXVDGYHUVHHYHQWVDUHIRXQGLQWKH
6SHFLILF3URWRFRO([FHSWLRQVWR([SHGLWHG5HSRUWLQJ63((5SRUWLRQRIWKH&$(35

([SHGLWHG$(UHSRUWLQJWLPHOLQHVDUHGHILQHGDV
R³+RXU&DOHQGDU'D\V´7KH$(PXVWLQLWLDOO\EHUHSRUWHGYLD&7(3$(56ZLWKLQKRXUVRI
OHDUQLQJRIWKH$(IROORZHGE\DFRPSOHWHH[SHGLWHGUHSRUWZLWKLQFDOHQGDUGD\VRIWKHLQLWLDO
KRXUUHSRUW

R
³&DOHQGDU'D\V´$FRPSOHWHH[SHGLWHGUHSRUWRQWKH$(PXVWEHVXEPLWWHGZLWKLQ
FDOHQGDUGD\VRIOHDUQLQJRIWKH$(
6HULRXVDGYHUVHHYHQWVWKDWRFFXUPRUHWKDQGD\VDIWHUWKHODVWDGPLQLVWUDWLRQRILQYHVWLJDWLRQDO
DJHQWLQWHUYHQWLRQDQGKDYHDQDWWULEXWLRQRISRVVLEOHSUREDEOHRUGHILQLWHUHTXLUHUHSRUWLQJDVIROORZV

([SHGLWHGKRXUQRWLILFDWLRQIROORZHGE\FRPSOHWHUHSRUWZLWKLQFDOHQGDUGD\VIRU
x $OO*UDGHDQG*UDGH$(V
([SHGLWHGFDOHQGDUGD\UHSRUWVIRU
x *UDGH$(VUHVXOWLQJLQKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQ

0D\
CLOSED EFFECTIVE 07/01/2017
OL]DWLRQIRU
OL]DWLRQIRU
QRUPDOOLIHIXQF
QRUPDOOLIHIXQ
RUUHTXLUHKRVS
UUHTXLUHKR
RSDUGL]HWKHSD
RSDUGL]HWKHSD
WKHRXWFRPHVOL
HRXWFRPHV
17
PPHGLDWHO\UHSR
PPHGLDWHO\UHS
07
VE 
VE
DPHV
E
U'D\V
U'D
VE
1RWUHTXLUHG
1RWUHTXLUHG
CT
VWRH[SHGLWHGU
VWRH[SHGLWHGU
LRQVWR([SHGLWH
RQVWR([SHGLW
WLPHOLQHVDUH
WLPHOLQHVDU
EF
&DOHQGDU'D\V
GDU'D\V
JRIWKH$(IROO
JRIWKH$(IROO
RXUUHSRUW
RXUUHSRUW
³&DOHQGDU
³&DOHQGD
FDOHQGDUG
FDOHQGDUG
EC
6HULRXVDGYH
6HULRXVDGYH
DJHQWLQWH
HQWLQWH
([
(
SE
CL


6

3DJH

9HUVLRQ'DWH
I
$GGLWLRQDO,QVWUXFWLRQVRU([FHSWLRQVWR&7(3$(56([SHGLWHG5HSRUWLQJ
5HTXLUHPHQWV IRU 3KDVH  DQG (DUO\ 3KDVH  6WXGLHV 8WLOL]LQJ DQ $JHQW
XQGHUDQRQ&7(3,1'


*URXSVSHFLILFLQVWUXFWLRQV

6XSSRUWLQJ 'RFXPHQWDWLRQ 6XEPLVVLRQ  :LWKLQ  FDOHQGDU GD\V
VXEPLWWKHIROORZLQJWRWKH6:2*2SHUDWLRQV2IILFHE\ID[WR
RUPDLOWRWKHDGGUHVVEHORZ
x
3ULQWHGFRS\RIWKHILUVWSDJHRIWKH&7(3$(56UHSRUW
x
&RSLHVRIFOLQLFDOVRXUFHGRFXPHQWDWLRQRIWKHHYHQW
x
,I DSSOLFDEOH DQG WKH\ KDYH QRW \HW EHHQ VXEPLWWHG WR WKH
6:2* 'DWD 2SHUDWLRQV &HQWHU FRSLHV RI 2II 7UHDWPHQW
1RWLFHDQGRU1RWLFHRI'HDWK


7KH DGYHUVH HYHQWV OLVWHG EHORZ DOVR UHTXLUH H[SHGLWHG PRQLWRULQJ IRU
WKLVWULDO

x
7KURPERHPEROLFHYHQWVDQ\*UDGHUHJDUGOHVVRIDWWULEXWLRQ

J
([SHGLWHGUHSRUWLQJIRUFRPPHUFLDODJHQWV
&RPPHUFLDOUHSRUWLQJUHTXLUHPHQWVDUHSURYLGHGLQ7DEOH7KHFRPPHUFLDO
DJHQWV XVHG LQ ERWK DUPV RI WKLV VWXG\ DUH )8 ILOJUDVWLP LULQRWHFDQ
R[DOLSODWLQDQGSHJILOJUDVWLP,IWKHUHLVDQ\TXHVWLRQDERXWWKHUHSRUWDELOLW\RIDQ
DGYHUVH HYHQW SOHDVH WHOHSKRQH RU HPDLO WKH 6$( 3URJUDP DW WKH 2SHUDWLRQV
2IILFHRUDGU#VZRJRUJEHIRUHSUHSDULQJWKHUHSRUW
7DEOH  ([SHGLWHG UHSRUWLQJ UHTXLUHPHQWV IRU DGYHUVH HYHQWV
H[SHULHQFHG E\ SDWLHQWV RQ 3KDVH ,, SRUWLRQ VWXG\ $UP  ZKR KDYH
UHFHLYHGWKHFRPPHUFLDOGUXJVOLVWHGLQJDERYHZLWKLQGD\VRIWKH
ODVWDGPLQLVWUDWLRQRIWKHFRPPHUFLDODJHQWV

$775,%87,21

*UDGH

*UDGH
D
8QH[SHFWHG
([SHFWH
G
8QH[SHFWHG
([SHFW
HG
8QUHODWHGRU
8QOLNHO\


&7(3$(56
&7(3
$(56
3RVVLEOH
3UREDEOH
'HILQLWH
&7(3$(56

&7(3$(56
&7(3
$(56
&7(3$(56  ,QGLFDWHV DQ H[SHGLWHG UHSRUW LV WR EH VXEPLWWHG YLD 1&, &7(3
$(56ZLWKLQFDOHQGDUGD\VRIOHDUQLQJRIWKHHYHQWE
D 7KLV LQFOXGHV DOO GHDWKV ZLWKLQ  GD\V RI WKH ODVW GRVH RI WUHDWPHQW ZLWK D
FRPPHUFLDODJHQWVUHJDUGOHVVRIDWWULEXWLRQ$Q\GHDWKWKDWRFFXUVPRUHWKDQ
 GD\V DIWHU WKH ODVW GRVH RI WUHDWPHQW ZLWK D FRPPHUFLDO DJHQWV DQG LV
DWWULEXWHG SRVVLEO\ SUREDEO\ RU GHILQLWHO\ WR WKH DJHQWV DQG LV QRW GXH WR
FDQFHUUHFXUUHQFHPXVWEHUHSRUWHGDFFRUGLQJWRWKHLQVWUXFWLRQVDERYH

E 6XEPLVVLRQRIWKHRQOLQH&7(3$(56UHSRUWSOXVDQ\ QHFHVVDU\DPHQGPHQWV
JHQHUDOO\FRPSOHWHVWKHUHSRUWLQJUHTXLUHPHQWV<RXPD\KRZHYHUEHDVNHGWR
VXEPLWVXSSRUWLQJFOLQLFDOGDWDWRWKH2SHUDWLRQV2IILFHLQRUGHUWRFRPSOHWHWKH
HYDOXDWLRQRIWKHHYHQW,IUHTXHVWHGWKHVSHFLILHGGDWDVKRXOGEHVHQWZLWKLQ
FDOHQGDUGD\VE\ID[WR

CLOSED EFFECTIVE 07/01/2017

W
PLWWHG WR WKH
PLWWHG WR WKH
2II 7UHD
I 7UHDWPHQ
WPH
H[SHGLWHG PR
[SHGLWHG P
DGHUHJDUGOHV
GHUHJDUGOH
QWV
UHSURYLGHGLQ
HSURYL
WKLV VWXG\ DU
KLV VWXG\ D
KHUHLVDQ\TXH
HUHLVDQ\TX
QH RU
QH RU HPDLO W
HPDLO W
#VZRJRUJEH
#VZRJRUJE
WHG UHSRUWLQ
WHG UHSRU
DWLHQWV RQ 3
LHQWV RQ 3
PHUFLDOGUXJ
PHUFLDOGUX
WLRQRIWKHFR
WLRQRIWKHFR
7,21
7,2
FE
FE
FE
FE
FE
FE
FE
FE
F
QUHODWHGRU
UHODWHGRU
8QOLNHO\
QOLNHO\
EF
3RVVLEOH
3RVVLEOH
3URED
3UR
'H
'
D E
ED
ED
&7(
&7(
ED
ED
ED
ED
ED


6

3DJH

9HUVLRQ'DWH
K
5HSRUWLQJ6HFRQGDU\0DOLJQDQF\LQFOXGLQJ$0/$//0'6


$VHFRQGDU\PDOLJQDQF\LVDFDQFHUFDXVHGE\WUHDWPHQWIRUDSUHYLRXV
PDOLJQDQF\ HJ WUHDWPHQW ZLWK LQYHVWLJDWLRQDO DJHQWLQWHUYHQWLRQ
UDGLDWLRQRUFKHPRWKHUDS\$VHFRQGDU\PDOLJQDQF\LVQRWFRQVLGHUHGD
PHWDVWDVLVRIWKHLQLWLDOQHRSODVP

6:2* UHTXLUHV DOO VHFRQGDU\ PDOLJQDQFLHV WKDW RFFXU IROORZLQJ
WUHDWPHQW ZLWK DQ DJHQW XQGHU D 1RQ1&, ,1' WR EH UHSRUWHG YLD
&7(3$(567KUHHRSWLRQVDUHDYDLODEOHWRGHVFULEHWKHHYHQW

x
/HXNHPLD VHFRQGDU\ WR RQFRORJ\ FKHPRWKHUDS\ HJ
$FXWH0\HORF\WLF/HXNHPLD>$0/@

x
0\HORG\VSODVWLFV\QGURPH0'6

x
7UHDWPHQWUHODWHGVHFRQGDU\PDOLJQDQF\

$Q\ PDOLJQDQF\ SRVVLEO\ UHODWHG WR FDQFHU WUHDWPHQW LQFOXGLQJ
$0/0'6 VKRXOG DOVR EH UHSRUWHG YLD WKH URXWLQH UHSRUWLQJ
PHFKDQLVPVRXWOLQHGLQHDFKSURWRFRO

6HFRQG 0DOLJQDQF\  $ VHFRQG PDOLJQDQF\ LV RQH XQUHODWHG WR WKH
WUHDWPHQWRIDSULRUPDOLJQDQF\DQGLV127DPHWDVWDVLVIURPWKHLQLWLDO
PDOLJQDQF\ 6HFRQGPDOLJQDQFLHVUHTXLUH21/<URXWLQHUHSRUWLQJ YLD
&'86XQOHVVRWKHUZLVHVSHFLILHG

)RUPRUHLQIRUPDWLRQVHH
KWWSFWHSFDQFHUJRYSURWRFRO'HYHORSPHQWHOHFWURQLFBDSSOLFDWLRQVGRFV
DHJXLGHOLQHVSGI


6XSSRUWLQJGRFXPHQWDWLRQVKRXOGEHVXEPLWWHGWR&7(3LQDFFRUGDQFH
ZLWK LQVWUXFWLRQV SURYLGHG E\ WKH &7(3$(56 V\VWHP  $ FRS\ RI WKH
UHSRUW DQG WKH IROORZLQJ VXSSRUWLQJ GRFXPHQWDWLRQ PXVW DOVR EH
VXEPLWWHGWR6:2*2SHUDWLRQV2IILFHZLWKLQGD\V

x
DFRS\RIWKHSDWKRORJ\UHSRUWFRQILUPLQJWKH$0/$//0'6
GLDJQRVLV
x
LIDYDLODEOHDFRS\RIWKHF\WRJHQHWLFVUHSRUW

6:2*
$7716$(3URJUDP
0HGLFDO'ULYH6XLWH
6DQ$QWRQLR7H[DV

127(,IDSDWLHQWKDVEHHQHQUROOHGLQPRUHWKDQRQH1&,VSRQVRUHG
VWXG\WKHUHSRUWPXVWEHVXEPLWWHGIRUWKHPRVWUHFHQWWULDO

L
5HSRUWLQJ3UHJQDQF\)HWDO'HDWKDQG'HDWK1HRQDWDO


3UHJQDQF\6WXG\SDUWLFLSDQWVZKREHFRPHSUHJQDQWZKLOHRQVWXG\WKDW
SUHJQDQF\VKRXOGEHUHSRUWHGLQDQH[SHGLWHGPDQQHUYLD&7(3$(56
DV *UDGH  ³3UHJQDQF\ SXHUSHULXP DQG SHULQDWDO FRQGLWLRQV ±
2WKHUSUHJQDQF\´XQGHUWKH3UHJQDQF\SXHUSHULXPDQGSHULQDWDO
FRQGLWLRQV62&

$GGLWLRQDOO\ WKH SUHJQDQF\ RXWFRPH IRU SDWLHQWV RQ VWXG\ VKRXOG EH
UHSRUWHG YLD &7(3$(56 DW WKH WLPH WKH RXWFRPH EHFRPHV NQRZQ
QJ
G YLD
G YLD
QW
HUDS\ HJ
HUDS\ HJ
QDQF\
DQF\
FDQFHU WUHDWP
DQFHU WUHD
HG YLD WKH
HG YLD WKH
FRO
RQG PDOLJQDQ
RQG PD
QF\DQGLV1
F\DQGLV1
DOLJQDQFLHVUH
DOLJQDQFLHVUH
HVSHFLILHG
HVSHFLILHG
RQVHH
RQVH
HUJRYSURWRFR
HUJRYSURW
SGI
SGI
LQJGRFXPHQW
QJGRFXPHQW
QVWUXFWLRQV
QVWUXFWLRQV SU
SRUW DQG WKH
RUW DQG WKH
XEPL
XEPLWWHGWR6
WWHGWR6
x


6

3DJH

9HUVLRQ'DWH
DFFRPSDQLHG E\ WKH VDPH 3UHJQDQF\ 5HSRUW )RUP XVHG IRU WKH LQLWLDO
UHSRUW


)HWDO'HDWK)HWDO'HDWKGHILQHGLQ&7&$(DV³$GLVRUGHUFKDUDFWHUL]HG
E\GHDWKLQXWHURIDLOXUHRIWKHSURGXFWRIFRQFHSWLRQWRVKRZHYLGHQFH
RI UHVSLUDWLRQ KHDUWEHDW RU GHILQLWH PRYHPHQW RI D YROXQWDU\ PXVFOH
DIWHU H[SXOVLRQ IURP WKH XWHUXV ZLWKRXW SRVVLELOLW\ RI UHVXVFLWDWLRQ´
VKRXOGEHUHSRUWHGH[SHGLWLRXVO\DV*UDGH³SUHJQDQF\SXHUSHULXP
DQG SHULQDWDO FRQGLWLRQV ± 2WKHU SUHJQDQF\ ORVV´ XQGHU WKH
3UHJQDQF\SXHUSHULXPDQGSHULQDWDOFRQGLWLRQV62&


'HDWK 1HRQDWDO  1HRQDWDO GHDWK GHILQHG LQ &7&$( DV ³$ GLVRUGHU
FKDUDFWHUL]HGE\FHVVDWLRQRIOLIHRFFXUULQJGXULQJWKHILUVWGD\VRIOLIH´
WKDW LV IHOW E\ WKH LQYHVWLJDWRU WR EH DW OHDVW SRVVLEO\ GXH WR WKH
LQYHVWLJDWLRQDODJHQWLQWHUYHQWLRQVKRXOGEHUHSRUWHGH[SHGLWLRXVO\

$QHRQDWDOGHDWKVKRXOGEHUHSRUWHGH[SHGLWLRXVO\DV*UDGH³*HQHUDO
GLVRUGHUV DQG DGPLQLVWUDWLRQ ± 2WKHU QHRQDWDO ORVV´ XQGHU WKH
*HQHUDOGLVRUGHUVDQGDGPLQLVWUDWLRQ62&

)HWDOGHDWKDQGQHRQDWDOGHDWKVKRXOG127EHUHSRUWHGDVD*UDGHHYHQW,I
UHSRUWHGDVVXFKWKH&7(3$(56LQWHUSUHWVWKLVDVDGHDWKRIWKHSDWLHQWEHLQJ
WUHDWHG

127(:KHQVXEPLWWLQJ&7(3$(56UHSRUWVIRU³3UHJQDQF\³3UHJQDQF\ORVV´
RU ³1HRQDWDO ORVV´ WKH 3UHJQDQF\ ,QIRUPDWLRQ )RUP VKRXOG DOVR EH FRPSOHWHG
DQG ID[HG ZLWK DQ\ DGGLWLRQDO PHGLFDO LQIRUPDWLRQ WR   7KH
SRWHQWLDO ULVN RI H[SRVXUH RI WKH IHWXV WR WKH LQYHVWLJDWLRQDO DJHQWV RU
FKHPRWKHUDS\ DJHQWV VKRXOG EH GRFXPHQWHG LQ WKH ³'HVFULSWLRQ RI (YHQW´
VHFWLRQRIWKH&7(3$(56UHSRUW

7KH3UHJQDQF\,QIRUPDWLRQ)RUPLVDYDLODEOHDW
KWWSFWHSFDQFHUJRYSURWRFRO'HYHORSPHQWDGYHUVHBHIIHFWVKWP

CLOSED EFFECTIVE 07/01/2017
H
H
RQ´
Q´
HULXP
LXP
GHU WKH
GHU WKH
DV ³$ GLVRUG
DV ³$ GLVRUG
LUVWGD\VRI
LUVWGD\VR
SRVVLEO\ GXH
VVLEO\ GXH
HGH[SHGLWLRX
HGH[SHGLWLRX
WLRXVO\DV
LRXVO\DV *UD
*
U QHRQDWDO O
U QHRQDWDO O
62&
62&
27 EHUHSRUWH
HUHSRU
USUHWVWKLVDV
USUHWVWKLVDV
$(
$(56UHSRUWV
56UHSRUW
QDQF\ ,QIRUPD
QDQF\ ,QIRUP
LWLRQDO PHGLFD
WLRQDO PH
VXUH RI WKH
XUH RI WKH
V VKRXOG EH
V VKRXOG E
3$(56UHSRU
(56UHS
F\,QIRUPDWLRQ
\,QIRUPDWLR
FDQFHUJRYSUR
DQFHUJRYSUR


6

3DJH

9HUVLRQ'DWH

%,%/,2*5$3+<

3iH]
'
/DERQWH
0-
/HQ]
+-
3DQFUHDWLF
FDQFHU
PHGLFDO
PDQDJHPHQW
QRYHO
FKHPRWKHUDSHXWLFV*DVWURHQWHURO&OLQ1RUWK$P


+LGDOJR03DQFUHDWLFFDQFHU7KH1HZ(QJODQG-RXUQDORI0HGLFLQH


%XUULV+$UGHWDO,PSURYHPHQWVLQVXUYLYDODQGFOLQLFDOEHQHILWZLWKJHPFLWDELQHDVILUVWOLQH
WKHUDS\ IRU SDWLHQWV ZLWK DGYDQFHG SDQFUHDV FDQFHU D UDQGRPL]HG WULDO -RXUQDO RI &OLQLFDO
2QFRORJ\


3iH]
'
/DERQWH
0-
/HQ]
+-
3DQFUHDWLF
FDQFHU
PHGLFDO
PDQDJHPHQW
QRYHO
FKHPRWKHUDSHXWLFV*DVWURHQWHURO&OLQ1RUWK$P

+LGDOJR03DQFUHDWLFFDQFHU7KH1HZ(QJODQG-RXUQDORI0HGLFLQH


9RQ+RII''(UYLQ7-$UHQD)3HWDO5DQGRPL]HGSKDVH,,,VWXG\RIZHHNO\QDESDFOLWD[HOSOXV
JHPFLWDELQH YHUVXV JHPFLWDELQH DORQH LQ SDWLHQWV ZLWK PHWDVWDWLF DGHQRFDUFLQRPD RI WKH
SDQFUHDV03$&7-&OLQ2QFROVXSSODEVWU/%$


&RQUR\7'HVVHLJQH)<FKRX0HWDO352',*(,QWHUJURXS)2/),5,12;YHUVXVJHPFLWDELQH
IRUPHWDVWDWLFSDQFUHDWLFFDQFHU1(QJO-0HG


&RQUR\7'HVVHLJQH)<FKRX0HWDO352',*(,QWHUJURXS)2/),5,12;YHUVXVJHPFLWDELQH
IRUPHWDVWDWLFSDQFUHDWLFFDQFHU1(QJO-0HG


/RZHU\ 0$ <X .+ $GHO 1* HW DO $FWLYLW\ RI IURQWOLQH )2/),5,12; )); LQ VWDJH ,,,,9
SDQFUHDWLFDGHQRFDUFLQRPD3&DW0HPRULDO6ORDQ.HWWHULQJ&DQFHU&HQWHU06.&&$
$6&2


-LDQJ3/L;7KRPSVRQ&%+XDQJ=HWDO(IIHFWLYHWDUJHWLQJRIWKHWXPRUPLFURHQYLURQPHQWIRU
FDQFHUWKHUDS\$QWLFDQFHU5HV


3URYHQ]DQR33&XHYDV&&KDQJ$(HWDO(Q]\PDWLFWDUJHWLQJRIWKHVWURPDDEODWHVSK\VLFDO
EDUULHUVWRWUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHU&HOO


-DFREHW]0$&KDQ'61HHVVH$+\DOXURQDQLPSDLUVYDVFXODUIXQFWLRQDQGGUXJGHOLYHU\LQD
PRXVHPRGHORISDQFUHDWLFFDQFHU*XW


7UHGDQ 2 *DOPDULQL &0 3DWHO . 7DQQRFN ,) 'UXJ UHVLVWDQFH DQG WKH VROLG WXPRU
PLFURHQYLURQPHQW-RXUQDORIWKH1DWLRQDO&DQFHU,QVWLWXWH


3URYHQ]DQR33&XHYDV&&KDQJ$(HWDO(Q]\PDWLFWDUJHWLQJRIWKHVWURPDDEODWHVSK\VLFDO
EDUULHUVWRWUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHU&HOO


-DFREHW]0$&KDQ'61HHVVH$+\DOXURQDQLPSDLUVYDVFXODUIXQFWLRQDQGGUXJGHOLYHU\LQD
PRXVHPRGHORISDQFUHDWLFFDQFHU*XW


:KDWFRWW &- +DQ + 3RVQHU 5* HW DO 7DUJHWLQJ WKH WXPRUPLFURHQYLURQPHQW LQ FDQFHU ZK\
K\DOXURQLGDVHGHVHUYHVDVHFRQGORRN&DQFHU'LVFRYHU\H


7RROH%3+\DOXURQDQIURPH[WUDFHOOXODUJOXHWRSHULFHOOXODUFXH1DWXUH5HYLHZV&DQFHU



%RUDG 0- 5DPDQDWKDQ 5. %HVVXGRHW $ DO 7DUJHWLQJ K\DOXURQDQ +$ LQ WXPRU VWURPD $
SKDVH , VWXG\ WR HYDOXDWH WKH VDIHW\ SKDUPDFRNLQHWLFV 3. DQG SKDUPDFRG\QDPLFV 3' RI
SHJ\ODWHGK\DOXURQLGDVH3(*3+LQSDWLHQWVZLWKVROLGWXPRUV$$6&2

DVILUVW
VILUVWOLQH
OL
DO RI &OLQLFDO
DO RI &OLQLF
PDQDJHPHQW
QDJHPHQW



G\RIZHHNO\Q
\RIZHHNO\Q
WDVWDWLF DGHQ
WDVWDWLF DGH


JURXS)2/),
JURXS)2/),



*(,QWHUJURXS
*(,QWHUJURXS


FWLYLW\ RI IURQ
WLYLW\ RI IUR
HPRULDO6ORDQ
HPRULDO6OR
XDQJ=HWDO
XDQJ=HWDO(
HV
HV 


V&&KDQJ$(
V&&KD
RISDQFUHDWLFG
SDQFUHDWLF
KDQ'61HHV
DQ'61HH
RISDQFUHDWLFF
QFUHDWLF
2 *DOPDULQL
2 *DOPD
QYLURQPHQW-R
QYLURQPHQW
URYHQ]DQR33
URYHQ]DQR33
EDUULHUVWRWUH
EDUULHUVWRWUH
-DFREHW]
-DFREHW]
PRXV
R


:



6

3DJH

9HUVLRQ'DWH

9RQ +RII '' HW DO *HPFLWDELQH SOXV QDESDFOLWD[HO LV DQ DFWLYH UHJLPHQ LQ SDWLHQWV ZLWK
DGYDQFHG SDQFUHDWLF FDQFHU D SKDVH ,,, WULDO -RXUQDO RI &OLQLFDO 2QFRORJ\  



+LGDOJR03DQFUHDWLFFDQFHU7KH1HZ(QJODQG-RXUQDORI0HGLFLQH


%XUULV+$UGHWDO,PSURYHPHQWVLQVXUYLYDODQGFOLQLFDOEHQHILWZLWKJHPFLWDELQHDVILUVWOLQH
WKHUDS\ IRU SDWLHQWV ZLWK DGYDQFHG SDQFUHDV FDQFHU D UDQGRPL]HG WULDO -RXUQDO RI &OLQLFDO
2QFRORJ\


9RQ+RII''(UYLQ7-$UHQD)3HWDO5DQGRPL]HGSKDVH,,,VWXG\RIZHHNO\QDESDFOLWD[HOSOXV
JHPFLWDELQH YHUVXV JHPFLWDELQH DORQH LQ SDWLHQWV ZLWK PHWDVWDWLF DGHQRFDUFLQRPD RI WKH
SDQFUHDV03$&7-&OLQ2QFROVXSSODEVWU/%$


&RQUR\7'HVVHLJQH)<FKRX0HWDO352',*(,QWHUJURXS)2/),5,12;YHUVXVJHPFLWDELQH
IRUPHWDVWDWLFSDQFUHDWLFFDQFHU1(QJO-0HG


0DKDGHYDQ ' 9RQ +RII '' 7XPRUVWURPD LQWHUDFWLRQV LQ SDQFUHDWLF GXFWDO DGHQRFDUFLQRPD
0ROHFXODU&DQFHU7KHUDSHXWLFV


/RZHU\ 0$ <X .+ $GHO 1* HW DO $FWLYLW\ RI IURQWOLQH )2/),5,12; )); LQ VWDJH ,,,,9
SDQFUHDWLFDGHQRFDUFLQRPD3&DW0HPRULDO6ORDQ.HWWHULQJ&DQFHU&HQWHU06.&&$
$6&2


3URYHQ]DQR33&XHYDV&&KDQJ$(HWDO(Q]\PDWLFWDUJHWLQJRIWKHVWURPDDEODWHVSK\VLFDO
EDUULHUVWRWUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHU&HOO


:KDWFRWW &- +DQ + 3RVQHU 5* HW DO 7DUJHWLQJ WKH WXPRUPLFURHQYLURQPHQW LQ FDQFHU ZK\
K\DOXURQLGDVHGHVHUYHVDVHFRQGORRN&DQFHU'LVFRYHU\H


3URYHQ]DQR33&XHYDV&&KDQJ$(HWDO(Q]\PDWLFWDUJHWLQJRIWKHVWURPDDEODWHVSK\VLFDO
EDUULHUVWRWUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHU&HOO


-DFREHW]0$&KDQ'61HHVVH$+\DOXURQDQLPSDLUVYDVFXODUIXQFWLRQDQGGUXJGHOLYHU\LQD
PRXVHPRGHORISDQFUHDWLFFDQFHU*XW


:KDWFRWW &- +DQ + 3RVQHU 5* HW DO 7DUJHWLQJ WKH WXPRUPLFURHQYLURQPHQW LQ FDQFHU ZK\
K\DOXURQLGDVHGHVHUYHVDVHFRQGORRN&DQFHU'LVFRYHU\H


3URYHQ]DQR33&XHYDV&&KDQJ$(HWDO(Q]\PDWLFWDUJHWLQJRIWKHVWURPDDEODWHVSK\VLFDO
EDUULHUVWRWUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHU&HOO


3URYHQ]DQR33&XHYDV&&KDQJ$(HWDO(Q]\PDWLFWDUJHWLQJRIWKHVWURPDDEODWHVSK\VLFDO
EDUULHUVWRWUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHU&HOO


+RUVWHG ) :HVW - *UDLQJH 0- 5LVN RI YHQRXV WKURPERHPEROLVP LQ SDWLHQWV ZLWK FDQFHU D
V\VWHPDWLFUHYLHZDQGPHWDDQDO\VLV3/R60HGH


(SVWHLQ$62¶5HLOO\(0([RFULQHSDQFUHDVFDQFHUDQGWKURPERHPEROLFHYHQWV$V\VWHPDWLF
OLWHUDWXUHUHYLHZ-1DWO&RPSU&DQF1HWZ-XO


(LVHQKDXHU($7KHUDVVH3%RJDHUWV-6FKZDUW]/+6DUJHQW')RUG5'DQFH\-$UEXFN6
*Z\WKHU60RRQH\05XELQVWHLQ/6KDQNDU/'RGG/.DSODQ5/DFRPEH'9HUZHLM-1HZ
UHVSRQVH HYDOXDWLRQ FULWHULD LQ VROLG WXPRXUV UHYLVHG 5(&,67 JXLGHOLQH YHUVLRQ  (XU -
&DQFHU

CLOSED EFFECTIVE 07/01/2017
ILUVW
ILUVWOLQH
OLQH
RI &OLQLFDO
I &OLQLF
QDESDFOLWD[HO
SDFOLWD[H
QRFDUFLQRPD
RFDUFLQRPD
),5,12;YHUVX
,5,12;YHU
SDQFUHDWLF GX
DQFUHDWLF
QW
QWOLQH )2/),
OLQH )
DQ.HWWHULQJ&
.HWWHULQJ&
DOO (Q]\PDWLFW
(Q]\PDWLFW
DGHQRFDUFLQRP
GHQRFDUFLQR
HW DO 7DUJHWLQ
DO 7DUJHWLQ
ORRN&DQFHU'
ORRN&DQFHU
&KDQJ$(HW
&KDQJ$(HW
QFUHDWLFGXFWDO
FUHDWLFGXFWD
'61HHVVH$
61HHVVH$
QFUHDWLFFDQFH
QFUHDWLFF
+DQ + 3RVQH
+ 3RVQ
VHGHVHUYHVD
VHGHVHUYHVD
]DQR33&XH
]DQR33&
HUVWRWUHDWPH
HUVWRWUHDWPH
3URYHQ]DQR3
3URYHQ]DQR
EDUULHUVWR
EDUULHUVW

+RUVWH
RU
V\V
V\V




6

3DJH

9HUVLRQ'DWH

$33(1',;


7UDQVODWLRQDO0HGLFLQH6WXGLHV
CLOSED EFFECTIVE 07/01/2017


6

3DJH

9HUVLRQ'DWH

7UDQVODWLRQDO0HGLFLQH6WXGLHV

D
%DFNJURXQG

8QWLOYHU\UHFHQWO\WKHXQLIRUPO\DFFHSWHGVWDQGDUGRIFDUHIRUSDQFUHDWLFGXFWDO
DGHQRFDUFLQRPD 3'$ ZDV VLQJOH DJHQW JHPFLWDELQH ZKLFK SURYLGHG PRGHVW
REMHFW UHVSRQVH UDWHV  DQG VLPLODUO\ PRGHVW LPSURYHPHQWV LQ ERWK
PHGLDQDQGRQH\HDUVXUYLYDO5HFHQWO\WZRUHJLPHQVKDYHVXJJHVWHGWKDW
GLIIHUHQWRXWFRPHVPD\EHSRVVLEOH,QD3KDVH,,VWXG\SDWLHQWVZLWK6WDJH,9
GLVHDVHUHFHLYHGDFRPELQDWLRQRIJHPFLWDELQHSOXVQDESDFOLWD[HODQDOEXPLQ
FRDWHG QDQRSDUWLFOH UHVXOWLQJ LQ D PHGLDQ VXUYLYDO RI  PRQWKV KLVWRULFDO
QRUP IRU JHPFLWDELQH PRQRWKHUDS\ LV DSSUR[LPDWHO\  PRQWKV   0RUH
UHFHQWO\ D 3KDVH ,,, WULDO RI WKH PXOWLGUXJ UHJLPHQ )2/),5,12; FRQIHUUHG D
PHGLDQ VXUYLYDO RI  PRQWKV FRPSDUHG ZLWK  PRQWKV IRU VLQJOH DJHQW
JHPFLWDELQHS,QWHUHVWLQJO\WKHVHWZRUHJLPHQVVKDUHRQHQRWDEOH
IHDWXUHVXVWDLQHGH[SRVXUHRIWKHWXPRUWRFLUFXODWLQJGUXJFRQFHQWUDWLRQVZKLFK
FDQKHOSRYHUFRPHWKHSURQRXQFHGLQWHUVWLWLDOIOXLGSUHVVXUHVWKDWRSSRVHGUXJ
SHQHWUDWLRQ VHH EHORZ  7KLV VWXG\ SURSRVHV D VWUDWHJ\ WR RYHUFRPH WKHVH
EDUULHUVDQGH[WHQGWKHHIILFDF\REVHUYHGZLWK)2/),5,12;

$QHPHUJLQJFRQFHSWLQSDQFUHDWLFFDQFHUSDWKRSK\VLRORJ\LVWKHH[WHQWWRZKLFK
WKHDVVRFLDWHGUREXVWGHVPRSODVWLFUHDFWLRQHUHFWVSK\VLFDOEDUULHUVWRV\VWHPLF
WKHUDSLHV  7KHVH EDUULHUV OLPLW WKH DELOLW\ WR DFKLHYH WKHUDSHXWLF GUXJ
FRQFHQWUDWLRQVDQGVHUYHDVSULPDU\DQGXQGHUDSSUHFLDWHGPHFKDQLVPVRIGUXJ
UHVLVWDQFH  'HWDLOHG DQDO\VHV RI WKH WXPRU PLFURHQYLURQPHQW LQ 3'$ DUH
UHYHDOLQJDQXQXVXDOO\FRPSOH[FHOOXODUDQGH[WUDFHOOXODUPDWUL[FRPSRVLWLRQWKDW
LQFOXGHVVWURPDOILEUREODVWVYDULRXVFODVVHVRILPPXQRVXSSUHVVLYHFHOOVDQGD
GHQVH QHWZRUN RI JO\FRVDPLQRJO\FDQV *$* SURWHRJO\FDQV DQG SURWHLQV WKDW
FROOHFWLYHO\FRQVSLUHWRFUHDWHDGUXJIUHHDQGLPPXQHSULYLOHJHGVDQFWXDU\IRU
WKHGLVHDVH2QHHVSHFLDOO\DEXQGDQW*$*K\DOXURQDQRUK\DOXURQLFDFLG
+$ LV WKH SULPDU\ GHWHUPLQDQW RI LQRUGLQDWHO\ KLJK LQWHUVWLWLDO IOXLG SUHVVXUH
,)3 WKDW ULYDOV PHDQ DUWHULDO SUHVVXUH DQG FDXVHV ZLGHVSUHDG YDVFXODU
FROODSVH+$LVDODUJHOLQHDUSRO\PHUFRPSRVHGRIDOWHUQDWLQJXQLWVRI1
DFHW\O JOXFRVDPLQH DQG JOXFXURQLF DFLG XQLWV ZLWK YLVFRHODVWLF SURSHUWLHV WKDW
FRQWULEXWH WR WKH DUFKLWHFWXUH DQG PDOOHDELOLW\ RI WLVVXHV SDUWLFXODUO\ GXULQJ
G\QDPLF SURFHVVHV VXFK DV HPEU\RJHQHVLV DQG RQFRJHQHVLV   7KH
YLVFRHODVWLF SURSHUWLHV RI +$ XQGHUOLH LWV UROH LQ FOLQLFDO DQG FRVPHWLF
DSSOLFDWLRQV,Q3'$+$IXQFWLRQVDVDK\GURJHOWUDSSLQJDQGUHWDLQLQJZDWHU
ZKLFKERWKVHUYHVWRHOHYDWH,)3DQGIXUWKHUUHWDUGGUXJSHUIXVLRQE\LQKLELWLQJ
FRQYHFWLRQ7KHLQYHVWLJDWRUVKDYHUHFHQWO\GHILQHGDVWUDWHJ\LQWKHLU0XULQH
&OLQLFDO7ULDOV3URJUDP0&73WRRYHUFRPHWKHVHSURKLELWLYH,)3VLQ3'$DQG
UHVWRUH ERWK GLIIXVLYH DQG FRQYHFWLYH FRPSRQHQWV RI GUXJ GHOLYHU\ 
6\VWHPLF DGPLQLVWUDWLRQ RI D FKHPLFDOO\ PRGLILHG IRUP RI UHFRPELQDQW
K\DOXURQLGDVH 3(*3+ QRUPDOL]HV ,)3 DQG PRELOL]HV LQWUDWXPRUDO IOXLG
SHUPLWWLQJ FKHPRWKHUDSLHV WR IUHHO\ SHQHWUDWH WKH WXPRU EHG  3KDVH , VWXGLHV
ZLWKVLQJOHDJHQW3(*3+KDYHDOUHDG\HVWDEOLVKHGWKDWLWLVZHOOWROHUDWHGDQG
DSSHDUVWRKDYHVLPLODUHIIHFWVRQWLVVXHSHUIXVLRQDVREVHUYHGLQWKHJHQHWLFDOO\
HQJLQHHUHG PRXVH VWXGLHV  $ 3KDVH ,,, UDQGRPL]HG WULDO LV FXUUHQWO\
XQGHUZD\FRPSDULQJWKHFRQWURODUPRIQDESDFOLWD[HOJHPFLWDELQHWRWKHVDPH
UHJLPHQ  3(*3+ LQ SDWLHQWV ZLWK DGYDQFHG SDQFUHDWLF FDQFHU +DOR
1&7 7KLV VWXG\ LV VSRQVRUHG E\ +DOR]\PH 7KHUDSHXWLFV DQG LV D
UHJLVWUDWLRQ VWXG\ (OLJLELOLW\ UHTXLUHV WXPRU VDPSOHV WR KDYH KLJK +$ FRQWHQW
+DOR]\PH KDV SDUWQHUHG ZLWK 5RFKH9HQWDQD V\VWHPV DQG D &/,$FHUWLILHG
FRPSDQLRQDVVD\9HQWDQD+$&'[LVXVHGWRSURVSHFWLYHO\LGHQWLI\+$+LJK
SDWLHQWVIRULQFOXVLRQLQWKHVWXG\

CLOSED EFFECTIVE 07/01/2017
GXFWDO
XFWD
PRGHVW
GHVW
V LQ ERWK
LQ ERWK
JJHVWHGWKDW
JJHVWHGWK
VZLWK6WDJH
VZLWK6WDJH ,
D[HODQDOEXP
HODQDOEX
 PRQWKV KLV
PRQWKV KLV
PRQWKV
RQWKV  
2/),5,12; F
/),5,12;
 PRQWKV IRU
PRQWKV
RUHJLPHQVVK
RUHJLPHQVV
ODWLQJGUXJFR
DWLQJGUXJ
OIOXLGSUHVVX
IOXLGSUHVVX
SRVHV D VWUDWH
D VWUDWH
ZLWK)2/),5
ZLWK)2/),5
FDQFHUSDWKRS
DQFHUSDWKR
WLFUHDFWLRQHU
HDFWLRQHU
OLPLW WKH DE
OLPLW WKH DE
SULPDU\DQGX
SULPDU\DQG
DO\VHV RI WKH
DO\VHV RI W
FRPSOH[FHOOXO
FRPSOH[FHOOX
REODVWVYDULRX
EODVWVYDULRX
JO\FRVDPLQRJ
JO\FRVDPLQ
SLUHWRFUHDWH
SLUHWRFUHDWH

2QHHVSH
2QHHV
H SULPDU\ GHW
H SULPDU\ GHW
DW ULYDOV PHD
DW ULYDOV PHD
VH
VH  +$LV
+$
W\O JOXFRVDPLQ
\O JOXFRVDPLQ
RQWULEXWH WR W
RQWULEXWH WR
G\QDPLF SUR
\QDPLF SUR
YLVFRHODVWL
RHODVW
DSSOLFDW
DSSOLFDW
ZKLFK
ZK
FRQ
FR
&


6

3DJH

9HUVLRQ'DWH
P)2/),5,12; PRGLILHG RU GRVHUHGXFHG )2/),5,12; LV QRZ D VWDQGDUG
UHJLPHQ IRU DGYDQFHG 3'$ DQG WKH LQYHVWLJDWRUV K\SRWKHVL]H WKDW WKH
FRPELQDWLRQ ZLWK 3(*3+ ZLOO VXEVWDQWLDOO\ LPSURYH RYHUDOO VXUYLYDO  7HVWLQJ
WKLVK\SRWKHVLVLQWKH3KDVH,,SRUWLRQRIWKHWULDOWKHLQYHVWLJDWRUVZLOOSHUIRUP
FRUUHODWLYH VWXGLHV WR GHWHUPLQH  LI LQWUDWXPRUDO +$ FRQWHQW FDQ VHUYHV DV D
XVHIXOSURJQRVWLFDQGSUHGLFWLYHPDUNHUDQGZKHWKHUFLUFXODWLQJOHYHOVRI+$
PHWDEROLWHV GXULQJ WKH FRXUVH RI WUHDWPHQW FDQ VHUYH WR GHPRQVWUDWH WDUJHW
GHJUDGDWLRQDQGZKHWKHUWKLVFDQDOVRSUHGLFWVXUYLYDOEHQHILW

E
([SHULPHQWDO$SSURDFKDQG$QDO\VLV

,QWUDWXPRUDO +$ FRQWHQW  )RUPDOLQIL[HG SDUDIILQHPEHGGHG ))3( PDWHULDO
IURP WLVVXH ELRSVLHV DW WLPH RI GLDJQRVLV ZLOO EH UHFRYHUHG DQG DUFKLYHG LQ D
FHQWUDOUHSRVLWRU\,WLVDQWLFLSDWHGWKDWPRVWWKHVHVSHFLPHQVZLOOUHSUHVHQWFRUH
ELRSVLHVIURPOLYHUOHVLRQVZLWKDPLQRULW\RIVDPSOHVIURPWKHSULPDU\SDQFUHDWLF
WXPRU  $IILQLW\KLVWRFKHPLFDO VWXGLHV ZLOO EH SHUIRUPHG IRU +$ FRQWHQW WR
GHWHUPLQHLWVSURJQRVWLFYDOXH7KHVHDVVD\VZLOOEHSHUIRUPHGLQGHSHQGHQWO\E\
9HQWDQD0HGLFDO6\VWHPVXVLQJWKH9HQWDQD+$&'[DVVD\
&LUFXODWLQJ +$ OHYHOV $OO SDWLHQWV ZLOO KDYH VHUXP +$ OHYHOV DVVHVVHG DW
EDVHOLQHKRXUVDIWHU3(*3+GRVLQJWKHQDWDQGZHHNVLQWRVWXG\$Q
DGGLWLRQDOEORRGVDPSOHZLOOEHGUDZQDWWLPHRIGLVHDVHSURJUHVVLRQLISRVVLEOH
,Q3KDVH,VWXGLHVSHDNFRQFHQWUDWLRQRIFLUFXODWLQJ+$FDWDEROLWHVRFFXUUHGDW
DSSUR[LPDWHO\KRXUV$GLVVDFKDULGHDVVD\LVXVHGWRPHDVXUHFDWDEROLWHV
&RQWURO OHYHOV LQ SDWLHQWV DUH OHVV WKDQ  PFJPO DQG SHDN FLUFXODWLQJ
FRQFHQWUDWLRQVLQSDWLHQWVUHFHLYLQJWKHH[SHFWHGVWXG\GRVHUDQJHGIURP±
PFJPO,QSUHFOLQLFDOVWXGLHVSHDNFLUFXODWLQJ+$FRQFHQWUDWLRQVDSSHDUWR
UHIOHFWEDVHOLQHLQWUDWXPRUDO+$FRQWHQWDQGDOVRVXFFHVVIXOWDUJHWDEODWLRQ
$GGLWLRQDO DVVD\V  $GGLWLRQDO DVVD\V ZLOO EH GRQH RQ DUFKLYHG PDWHULDO
FRQWLQJHQWXSRQDFTXLULQJDGGLWLRQDOIXQGLQJVXSSRUW7KH+LQJRUDQLODERUDWRU\
KDV H[WHQVLYH H[SHULHQFH ZLWK DVVD\V RI +$ DQG RWKHU PDUNHUV LQ SDQFUHDWLF
FDQFHU  7KHVH VWXGLHV ZRXOG LQFOXGH LPPXQRKLVWRFKHPLFDO ,+& DQGRU
LPPXQRIOXRUHVFHQFH ,) DQDO\VHV RI GHJUHH RI DSRSWRVLV LQ VWURPDO DQG
HSLWKHOLDO FRPSDUWPHQWV GXDO ,) IRU FOHDYHG FDVSDVH  && DQG D60$ RU
&.UHVSHFWLYHO\SUROLIHUDWLRQLQHDFKFRPSDUWPHQWXVLQJ.LIRUH[DPSOH
LQVLPLODUGXDO,)DVVD\VDQGYDVFXODUFRQWHQWDQGPRUSKRORJ\&'2QFH
WKH VWXG\ UHTXLUHG DVVD\V DUH GRQH WKH LQYHVWLJDWRUV ZLOO HYDOXDWH UHPDLQLQJ
VSHFLPHQVDQGLQFROODERUDWLRQZLWK'U+LQJRUDQLDSSO\IRUDGGLWLRQDOIXQGLQJ

F
6WDWLVWLFDO3ODQ

'XHWRHDUO\VWXG\FORVXUHWKHLQYHVWLJDWRUVH[SHFWWRKDYHDSSUR[LPDWHO\
VDPSOHV IRU HYDOXDWLRQ RI +$ DIILQLW\LPPXQRKLVWRFKHPLVWU\ ,+& ZLOO EH
FRQYHUWHGWRKLJKRUJUHDWHUYHUVXVORZRU,WLVH[SHFWHGWKDWLQWKLV
SRSXODWLRQDSSUR[LPDWHO\RIFDVHVZLOOIDOOLQWRWKHµKLJK¶FDWHJRU\6XUYLYDO
LVK\SRWKHVL]HGWREHEHWWHULQWKRVHUHFHLYLQJ3(*3+DQGZLWKKLJK+$E\
,+&:LWKWKLVVDPSOHVL]HWKHUHLVVXIILFLHQWSRZHUWRGHWHFWDVWURQJSURJQRVWLF
HIIHFW RI ,+& LQ WKH FRQWURO JURXS DORQH XQGHU WKH K\SRWKHVLV WKDW PHGLDQ
VXUYLYDOLVPRQWKVLQWKHFRQWUROSRSXODWLRQLIWKH+5EHWZHHQORZDQGKLJK
,+&LVFRUUHVSRQGLQJWRPHGLDQVRIDSSUR[LPDWHO\DQGPRQWKVLQWKH
KLJKDQGORZJURXSVUHVSHFWIXOO\WKHSRZHUZRXOGEHEDVHGRQDVLGHG
W\SH RQHHUURU,W LV RIVSHFLDOLQWHUHVWWRH[SORUH ZKHWKHUWUHDWPHQW ZLWK
3(*3+VHOHFWLYHO\LPSURYHVRXWFRPHLQWKRVHZLWKKLJK+$7KLVFRUUHVSRQGV
WRDQLQWHUDFWLRQEHWZHHQ,+&OHYHODQGWUHDWPHQWHIIHFW8QGHUWKHDOWHUQDWLYHLI
LW LV DVVXPHG WKDW DOO RI WKH WUHDWPHQW HIIHFW RFFXUV LQ WKH KLJK +$ JURXS
FRUUHVSRQGLQJWRPHGLDQVXUYLYDOLQWKHH[SHULPHQWDODUPRIPRQWKVLQWKH
CLOSED EFFECTIVE 07/01/2017
$
JHW
HW
))3( PDWH
))3( PD
G DQG DUFKLYH
DQG DUFKLYH
HQVZLOOUHSUHV
ZLOOUHSU
PWKHSULPDU\
PWKHSULPDU
RUPHG IRU +
UPHG IRU
HSHUIRUPHGL
HSHUIRUPHGL
&'[DVVD\
&'[DVVD\
DYH VHUXP +
H VHUXP +
JWKHQDWD
JWKHQDW
DWWLPHRIGLVH
DWWLPH
LRQRIFLUFXODW
RQRIFLUFXO
DFKDULGHDVVD\
ULGHDVVD\
UH OHVV WKDQ
UH OHVV WKDQ
HFHLYLQJWKHH[
FHLYLQJWKHH
VWXGLHVSHDN
VWXGLHVSHD
RUDO+$FRQWH
RUDO+$FRQWH
 $GGLWLRQDO
$GGLWLRQ
DFTXLULQJDGG
DFTXLULQJDGG
H H[SHULHQFH Z
H[SHULHQFH
 7KHVH VWXG
7KHVH VWXG
XRUHVFHQFH
XRUHVFHQFH
LDO FRPSDUWP
LDO FRPSDUW
UHVSHFWLYHO
UHVSHFWLYH
VLPLODUGXDO
VLPLODUGXD
WKH VWXG\ UH
H VWXG\ UH
VSHFLPHQV
FLPHQV
FF
6WDW
6WD


6

3DJH

9HUVLRQ'DWH
KLJKDQGPRQWKVLQWKHORZWKLVWUDQVODWHVLQWRDSSUR[LPDWHO\DQLQWHUDFWLRQ
KD]DUGUDWLRRIZKLFKFDQEHGHWHFWHGZLWKSRZHU

)RUWKHDVVHVVPHQWRIFLUFXODWLQJ+$OHYHOVLWLVDQWLFLSDWHGWKDWPRUHWKDQ
RIEORRGVDPSOHVZLOOEHVXEPLWWHGIRUDWOHDVWWKHEDVHOLQHDQGKRXUGUDZV
ZLWK VRPH GURS RII DW ODWHU WLPH SHULRGV  7KH LQYHVWLJDWRUV ZLOO DSSURDFK WKH
DQDO\VLVRIWKHVHGDWDLQVHYHUDOZD\V,QLWLDOO\WKHGLVWULEXWLRQVRIWKHVHDVVD\V
ZLOOEHDVVHVVHGERWKDWEDVHOLQHDQGEHWZHHQEDVHOLQHDQGWKHKRXUGUDZ
$Q LQFUHDVH LQ +$ LV H[SHFWHG WR UHIOHFW D VXFFHVVIXO WDUJHW EXW KRZ LW LV
LQIOXHQFHGE\WKHEDVHOLQHYDOXHZLOOQHHGWREHHYDOXDWHGDQGWKHYDULDELOLW\RI
WKHVH PHDVXUHV LV QRW ZHOO NQRZQ &LUFXODWLQJ OHYHOV ZLOO EH HYDOXDWHG IRU
SRWHQWLDOSURJQRVWLFRUSUHGLFWLYHYDOXHVXVLQJ&R[UHJUHVVLRQ

G
3URFHGXUHV

3DUDIILQ(PEHGGHG7LVVXH))3(
$OOVWXG\VLWHVZLOOEHUHTXHVWHGWRREWDLQEDVHOLQHWXPRUEORFNVLIDYDLODEOHRUDW
OHDVW  XQVWDLQHG FRQVHFXWLYH WLVVXH VHFWLRQV FXW DW  PLFURQV RQ SRVLWLYHO\
FKDUJHGVOLGHV
3OHDVHUHYLHZ6HFWLRQIRUVSHFLPHQVXEPLVVLRQSURFHGXUHV
7KH6:2*5HSRVLWRU\ZLOOVKLSEDVHOLQHWLVVXHVSHFLPHQVIRU+$WHVWLQJWR
9HQWDQD0HGLFDO6\VWHPV,QF
&'[3KDUPD6HUYLFH&$3&/,$/DERUDWRU\
(,QQRYDWLRQ'U
7XFVRQ$=
&U\VWDO5REOHVFU\VWDOUREOHV#URFKHFRP

%ORRG6DPSOHV
)RXU  P/ VDPSOHV RI EORRG GUDZQ DW SUHVWXG\  KRXUV DIWHU 3(*3+
GRVLQJ DQG DW  DQG  ZHHNV DIWHU EHJLQQLQJ WUHDWPHQW LV UHTXLUHG  VHULDO
VDPSOHV $Q DGGLWLRQDO EORRG VDPSOH ZLOO EH REWDLQHG DW WLPH RI GLVHDVH
SURJUHVVLRQLISRVVLEOH

3OHDVHUHYLHZ6HFWLRQIRUVSHFLPHQSURFHVVLQJDQGVXEPLVVLRQSURFHGXUHV
7KH6:2*5HSRVLWRU\ZLOOVKLSEORRGSODVPDVSHFLPHQVIRU+$WHVWLQJWR
0LFUR&RQVWDQWV,QF
&DPLQR6DQWD)H
6DQ'LHJR&$
.DWLH-HOWHPD3URMHFW0DQDJHUH[W
.-HOWHPD#0LFUR&RQVWDQWVFRP

H
9(17$1$+$5['[

7KH9(17$1$+$5['[$VVD\LVLQWHQGHGIRUWKHKLVWRFKHPLFDODVVHVVPHQWRI
K\DOXURQDQ+$LQIRUPDOLQIL[HGSDUDIILQHPEHGGHG))3(WLVVXHFRPSULVLQJ
RISDQFUHDWLFGXFWDODGHQRFDUFLQRPDVWDLQHGRQD%HQFK0DUN8/75$DXWRPDWHG
VWDLQLQJLQVWUXPHQW6SHFLPHQVKDYHDOUHDG\EHHQFROOHFWHGGXULQJWKH6:2*
6VWXG\
CLOSED EFFECTIVE 07/01/2017
H
D\V
\V
GUDZ
UDZ
RZ LW LV
RZ LW LV
DULDELOLW\RI
ULDELOLW\
YDOXDWHG
DOXDWH
IRU
I
QHWXPRUEORFN
HWXPRUEOR
V FXW DW 
V FXW DW 
HQVXEPLVVLRQ
HQVXEP
DVHOLQHWLVVXH
LQHWLVVXH
QF
&/,$/DERUDW
&/,$/DERU

F

V
F
P/ VDPSOHV
P/ VDPSOHV
 DQG
 DQG DW  DQ
DW 
SOHV $Q DG
SOHV $Q DG
URJUHVVLRQLIS
URJUHVVLRQLI
3OHDVHUHY
VHUHY
7KH6
K


6

3DJH

9HUVLRQ'DWH
3DWKRORJLVWV DW 9HQWDQD DJUHHG RQ D PHWKRG RI VFRULQJ K\DOXURQDQ FRQWHQW LQ
3'$WLVVXHVSHFLPHQVYLDHYDOXDWLRQRIWKHSHUFHQWDJHRIK\DOXURQDQVWDLQLQJRI
WKHH[WUDFHOOXODUPDWUL[DWDQ\VWDLQLQJLQWHQVLW\DERYHEDFNJURXQGWKURXJKRXW
WKHHQWLUHWXPRUVXUIDFH7KHUHVXOWLQJ K\DOXURQDQVFRUHLVWKHSHUFHQWRIWKH
9(17$1$+$5['[$VVD\VWDLQHGWXPRUH[WUDFHOOXODUPDWUL[FRPSDUHGWRWKH
WRWDO WXPRU VXUIDFH  7KH VFRULQJ DOJRULWKP IRU WKH 9(17$1$ +$ KDV EHHQ
YHULILHG WKURXJK 9HQWDQD¶V LQWUD DQG LQWHUUHDGHU SUHFLVLRQ VWXGLHV $V WKH
VFRULQJ \LHOGV +$ DV D FRQWLQXRXV YDULDEOH D FXWRII WR GLVWLQJXLVK K\DOXURQDQ
+LJK DQG /RZ FRQWHQW DQG LWV SRWHQWLDO DELOLW\ WR EH XVHG DV D SUHGLFWLYH
ELRPDUNHUZDVFRQILUPHGLQWKHDQDO\VLVRIVDPSOHVFROOHFWHGIURP+$/2
VWDJH³YDOLGDWLRQVHW´DQGLVFXUUHQWO\DOVRXVHGLQWKHSDWLHQWVHOHFWLRQIRU
WKH3KDVHFOLQLFDOVWXG\+$/2LQSDQFUHDWLFFDQFHU,QDGGLWLRQRQ
0DUFKWKH)'$DSSURYHGDQ,'(IRUWKH9(17$1$5['[IRUWKHXVHLQ
+DOR]\PH¶V3KDVH,,,VWXG\$SSURYDO1R*


$QDO\WLFDO3HUIRUPDQFH

7KH9(17$1$+$5['[DVVD\ZLOOEHSHUIRUPHGLQRQHFHQWUDOODELQD
UHWURVSHFWLYHIDVKLRQ

1RUPDOVNLQDQGQRUPDOOLYHUVOLGHVFRQWDLQLQJ+$SRVLWLYHDQGQHJDWLYH
HOHPHQWV DUH VWDLQHG ZLWK 9(17$1$ +$ 5['[ $VVD\ WR VHUYH DV
V\VWHPOHYHO FRQWUROV ,Q DGGLWLRQ LQGLYLGXDO SDWLHQW VDPSOHV ZLOO EH
WUHDWHGZLWKK\DOXURQLGDVHDQGVHUYHDVLQWUDSDWLHQWQHJDWLYHFRQWURO

3DWKRORJLVWV DW 9HQWDQD DJUHHG RQ D PHWKRG RI VFRULQJ K\DOXURQDQ
FRQWHQW LQ 3'$ WLVVXH VSHFLPHQV YLD HYDOXDWLRQ RI WKH SHUFHQWDJH RI
K\DOXURQDQVWDLQLQJRIWKHH[WUDFHOOXODUPDWUL[DWDQ\VWDLQLQJLQWHQVLW\
DERYHEDFNJURXQGWKURXJKRXWWKHHQWLUHWXPRUVXUIDFH7KHUHVXOWLQJ
K\DOXURQDQ VFRUH LV WKH SHUFHQW RI WKH 9(17$1$ +$ 5['[ $VVD\
VWDLQHGWXPRUH[WUDFHOOXODUPDWUL[FRPSDUHGWRWKHWRWDOWXPRUVXUIDFH
$VWKHVFRULQJ\LHOGV+$DVDFRQWLQXRXVYDULDEOHDFXWRIIWRGLVWLQJXLVK
K\DOXURQDQ+LJKDQG/RZFRQWHQWDQGLWVSRWHQWLDODELOLW\WREHXVHGDVD
SUHGLFWLYHELRPDUNHUZDVFRQILUPHGLQWKHDQDO\VLVRIVDPSOHVFROOHFWHG
IURP+$/2VWDJH³YDOLGDWLRQVHW´DQGLVFXUUHQWO\DOVRXVHG
LQWKHSDWLHQWVHOHFWLRQIRUWKH3KDVHFOLQLFDOVWXG\+$/2LQ
SDQFUHDWLFFDQFHU,QDGGLWLRQRQ0DUFKWKH)'$DSSURYHGDQ
,'(IRUWKH9(17$1$5['[IRUWKH XVH LQ+DOR]\PH¶V 3KDVHVWXG\
$SSURYDO 1R * $V SDUW RI WKH ,'( VXEPLVVLRQ WKH WHFKQLFDO
YDOLGDWLRQLQFOXGHGWKHIROORZLQJDVVD\V

$OODVVD\VSDVVHGWKHDFFHSWDQFHUHTXLUHPHQWV
x
$FFHOHUDWHG6WDELOLW\$VVHVVPHQWRI9(17$1$+$5['[$VVD\
x
5HDFWLYLW\ $VVHVVPHQW RI 9(17$1$ +$ 5['[ $VVD\ %LQGLQJ LQ
1RUPDODQG1HRSODVWLF7LVVXHV
x
,QWUDGD\ 5HSHDWDELOLW\ DQG ,QWHUGD\ ,QWHUPHGLDWH 3UHFLVLRQ RI
9(17$1$+$5['[$VVD\RQ3'$
x
&XW 6OLGH 6WDELOLW\ RI 9(17$1$ +$ 5['[ $VVD\ RQ 3DQFUHDWLF
'XFWDO$GHQRFDUFLQRPD
x
&XW 6OLGH 6WDELOLW\ RI 9(17$1$ +$ 5['[ $VVD\ RQ 6\VWHP /HYHO
&RQWURO6OLGHV
x
,QWHUPHGLDWH 3UHFLVLRQ ,QWHU+$ /RW ,QWHU'HWHFWLRQ .LW /RW DQG
,QWUD3ODWIRUPRI9(17$1$+$5['[$VVD\6WDLQLQJLQ3'$
x
5HDGHU 3UHFLVLRQ ,QWHU5HDGHU 5HSHDWDELOLW\ 6WXG\ IRU 9(17$1$
+$5['[$VVD\LQ3DQFUHDWLF'XFWDO$GHQRFDUFLQRPD
CLOSED EFFECTIVE 07/01/2017
Q
WKH
URQDQ
QD
UHGLFWLYH
UHGLFWLYH
+$/2
$/2
 
WVHOHFWLRQIRU
VHOHFWLRQI
,QDGGLWLRQR
,QDGGLWLRQR
['[IRU
[IR WKHXV
WKHX
SHUIRUPHGLQR
HUIRUPHGLQ
GHVFRQWDLQLQJ
GHVFRQWDLQLQ
9(17$1$ +$
9(17$
DGGLWLRQ LQGLY
GGLWLRQ LQG
VHDQGVHUYHD
HDQGVHUYHD
QWDQD DJUHHG
QWDQD DJUHHG
WLVVXH VSHFLP
VVXH VSHFLP
DLQLQJRIWKHH
DLQLQJRIWKH
JURXQGWKURX
RXQGWK
DQ VFRUH LV W
DQ VFRUH LV
GWXPRUH[WUDF
GWXPRUH[WUD
KHVFRULQJ\LH
KHVFRULQJ\LH
\DOXURQDQ+LJ
\DOXURQDQ+LJ
SUHGLFW
SUHGLFWLYHELR
LYH
IURP+$/
IURP+$/
LQWKHS
LQWKH
SDQF
SDQF
,'
,'


6

3DJH

9HUVLRQ'DWH
x
7LVVXH7KLFNQHVV9HULILFDWLRQRI9(17$1$+$5['[$VVD\6WDLQLQJ
LQ3DQFUHDWLF'XFWDO&DUFLQRPD3'$
x
7LVVXH7KLFNQHVV9HULILFDWLRQRI9(17$1$+$5['[$VVD\6WDLQLQJ
RQ6\VWHP/HYHO&RQWURO7LVVXHV1RUPDO/LYHUDQG6NLQ
x
,QWHUPHGLDWH 3UHFLVLRQ ,QWHU+$ /RW ,QWHU'HWHFWLRQ .LW /RW DQG
,QWUD3ODWIRUP RI 9(17$1$ +$ 5['[ $VVD\ 6WDLQLQJ LQ 6\VWHP
/HYHO&RQWURO7LVVXH
x
9(17$1$ +$ 5['[ $VVD\ 6WDLQLQJ 5HSHDWDELOLW\ ,QWUDGD\ DQG
,QWHUPHGLDWH 3UHFLVLRQ ,QWHUGD\ 9HULILFDWLRQ LQ 6\VWHP/HYHO
7LVVXH&RQWUROV1RUPDO6NLQDQG1RUPDO/LYHU


&OLQLFDO8WLOLW\

7KH DVVD\ LV H[SORUDWRU\ DQG QHLWKHU LQWHJUDWHG QRU LQWHJUDO +$ LV D
ODUJH OLQHDU SRO\PHU FRPSRVHG RI DOWHUQDWLQJ XQLWV RI 1DFHW\O
JOXFRVDPLQH DQG JOXFXURQLF DFLG XQLWV ZLWK YLVFRHODVWLF SURSHUWLHV WKDW
FRQWULEXWH WR WKH DUFKLWHFWXUH DQG PDOOHDELOLW\ RI WLVVXHV SDUWLFXODUO\
GXULQJG\QDPLFSURFHVVVXFKDVHPEU\RJHQHVLVDQGRQFRJHQHVLV7KH
YLVFRHODVWLF SURSHUWLHV RI +$ XQGHUOLH LWV UROH LQ FOLQLFDO DQG FRVPHWLF
DSSOLFDWLRQV,Q3'$+$IXQFWLRQVDVDK\GURJHOWUDSSLQJDQGUHWDLQLQJ
ZDWHU ZKLFK ERWK VHUYHV WR HOHYDWH ,)3 DQG IXUWKHU UHWDUGV GUXJ
SHUIXVLRQ E\ LQKLELWLQJ FRQYHFWLRQ  :H +LQJRUDQL /DE KDYH UHFHQWO\
GHILQHG D VWUDWHJ\ LQ RXU 0XULQH &OLQLFDO 7ULDOV 3URJUDP 0&73 WR
RYHUFRPHWKHVHSURKLELWLYH,)3VLQ3'$DQGUHVWRUHERWKGLIIXVLYHDQG
FRQYHFWLYH FRPSRQHQWV RI GUXJ GHOLYHU\ 6\VWHPLF DGPLQLVWUDWLRQ RI D
FKHPLFDOO\ PRGLILHG IRUP RI UHFRPELQDQW K\DOXURQLGDVH 3(*3+
QRUPDOL]HV
,)3
DQG
PRELOL]HV
LQWUDWXPRUDO
IOXLG
SHUPLWWLQJ
FKHPRWKHUDSLHVWRIUHHO\SHQHWUDWHWKHWXPRUEHG3KDVHVWXGLHVZLWK
VLQJOHDJHQW3(*3+KDYHDOUHDG\HVWDEOLVKHGWKDWLWLVZHOOWROHUDWHG
DQGDSSHDUVWRKDYHVLPLODUHIIHFWVRQWLVVXHSHUIXVLRQDVREVHUYHGLQ
WKHJHQHWLFDOO\HQJLQHHUHGPRXVHVWXGLHV

$QDSSURSULDWHVFRULQJPHWKRGIRUWKH9(17$1$+$5['[$VVD\$VVD\
EDVHG RQ FOLQLFDO RXWFRPH GDWD ZDV GHYHORSHG XVLQJ D VHW RI WLVVXH
VDPSOHVIURPSDWLHQWVSUHYLRXVO\HQUROOHGLQVWDJH³WUDLQLQJVHW´RIWKH
+DOR]\PHVSRQVRUHG3KDVHFOLQLFDOWULDO+$/2$FXWRIIWR
GLVWLQJXLVKK\DOXURQDQ+LJKDQG/RZFRQWHQWDQGLWVSRWHQWLDODELOLW\WR
EH XVHG DV D SUHGLFWLYH ELRPDUNHU ZDV FRQILUPHG LQ WKH DQDO\VLV RI
VDPSOHVFROOHFWHGIURP+$/2VWDJH³YDOLGDWLRQVHW´SWV
ZHUHUDQGRPL]HGDUHHYDOXDEOHIRUHIILFDF\,QVWXG\+$/2
RISWVZLWK+$GDWDZHUH+$+LJK$VRI'HFHPEHU
WKHSULPDU\3)6HQGSRLQWZDVVWDWLVWLFDOO\VLJQLILFDQWIRU3$*YV
$*+5&,S 3)6LQ+$+LJKSWVZDVDOVR
VWDWLVWLFDOO\ VLJQLILFDQW LQ WKH 3$* YV $* DUP +5   &, 
 S  255 LQ +$+LJK SWV ZDV  3$* YV  $*
2YHUDOO VXUYLYDO LQ +$+LJK SWV H[SORUDWRU\ ZDV  PRQWKV PR
3$*DQGPR$*+5&,7(HYHQWVZHUH
VLPLODU 3$*  YV $*  IROORZLQJ HQR[DSDULQ LQLWLDWLRQ
5DQGRPL]HG 3KDVH ,, VWXG\ PHW ERWK SULPDU\ HQGSRLQWV 3)6 DQG 7(
HYHQWUDWH ZLWKWKH ODUJHVWLPSURYHPHQWLQWKHVHFRQGDU\HQGSRLQWRI
3)6 LQ +$+LJK SWV 7KHVH GDWD VXSSRUW +$ DV D SRWHQWLDO SUHGLFWLYH
ELRPDUNHUIRUSDWLHQWVHOHFWLRQRI3(*3+LQSDQFUHDWLFFDQFHUVXFKDV
LQWKHRQJRLQJJOREDO3KDVH+$/2VWXG\RU6:2*6

CLOSED EFFECTIVE 07/01/2017
P
P
D\ DQG
DQG
WHP
HP/HYHO
/HYHO
HG QRU LQWHJUD
G QRU LQWHJUD
QDWLQJ XQLWV
DWLQJ XQ
K YLVFRHODVWLF
K YLVFRHODVWLF
OHDELOLW\ RI WL
HDELOLW\ RI
U\RJHQHVLVDQ
U\RJHQHVLVDQ
HUOLH LWV UROH L
H LWV UROH L
QVDVDK\GUR
QVDVDK\GUR
R HOHYDWH ,)3
R HOHYD
YHFWLRQ  :H
HFWLRQ  :H
XU 0XULQH &O
XU 0XULQH &O
ELWLYH,)3VLQ
LWLYH,)3V
HQWV RI GUXJ
HQWV RI GUXJ
ILHG IRUP RI
HG IRUP RI
)3
DQG
P
)3
DQG
SLHVWRIUHHO\
HVWRIUHHO\
HQW3(*3+
HQW3(*3+
SHDUVWRKDYH
SHDUVWRKDYH
JHQHWLFDOO\HQJ
JHQHWLFDOO\HQ
$QDSSURSULD
$QDSSUR
EDVHG RQ
EDVHG RQ
VDPSOHV
VDPS
+DOR]
+DOR]
GLV
GLV


6

3DJH

9HUVLRQ'DWH
7KXVWKHSUHFOLQLFDOVWXGLHVDQGSUHOLPLQDU\UHVXOWVRIWKH+DORVWXG\
VXSSRUWIXUWKHUHYDOXDWLRQRI+$DVVD\VLQ6

([SHFWHG'LVWULEXWLRQRI%LRPDUNHULQ6WXG\3RSXODWLRQ
7KH9(17$1$+$5['[DVVD\ZLOOEHSHUIRUPHGLQRQHFHQWUDOODELQD
UHWURVSHFWLYH IDVKLRQ WR DVVHVV DQ\ SRWHQWLDO FRUUHODWLRQ RI +$ VWDWXV
ZLWKRXWFRPHLQVWXG\6:2*6%DVHGRQGDWDRIWKH+$/2
VWXG\DSSUR[LPDWHO\RIWKHSDWLHQWVDUHH[SHFWHGWREH+$
+LJK


&XWSRLQWVWREH8VHGLQ$QDO\VLV

7KLVDQDO\VLVLVH[SORUDWRU\DQGOLWWOHGDWDDUHDYDLODEOH

6 H[SHFWV DW OHDVW  VXEPLVVLRQ RI DUFKLYDO WLVVXH WKXV
DSSUR[LPDWHO\  VDPSOHV DUH DYDLODEOH IRU HYDOXDWLRQ RI +$ DIILQLW\
LPPXQRKLVWRFKHPLVWU\   ,+& ZLOO EH FRQYHUWHG WR KLJK  RU JUHDWHU
YHUVXVORZRU,WLVH[SHFWHGWKDWLQWKLVSRSXODWLRQDSSUR[LPDWHO\
RIFDVHVZLOOIDOOLQWRWKHµKLJK¶FDWHJRU\6XUYLYDOLVK\SRWKHVL]HGWR
EHEHWWHULQWKRVHUHFHLYLQJ3(*3+DQGZLWKKLJK+$E\,+&:LWK
WKLVVDPSOHVL]HWKHUHLVVXIILFLHQWSRZHUWRGHWHFWDVWURQJSURJQRVWLF
HIIHFW RI ,+& LQ WKH FRQWURO JURXS DORQH XQGHU WKH K\SRWKHVLV WKDW
PHGLDQVXUYLYDOLVPRQWKVLQWKHFRQWUROSRSXODWLRQ

$FFHVVWR$VVD\5HVXOWV
,QGLYLGXDOUHSRUWVZLOOQRWEHJLYHQWRWUHDWLQJSK\VLFLDQRUSDWLHQWV7KH
VWXG\ LV FORVHG WR DFFUXDO DQG PRVW SDWLHQWV DUH H[SHFWHG WR EH RII
SURWRFROWKHUDS\VRRQ




CLOSED EFFECTIVE 07/01/2017
D
DWXV
XV


REH+$
REH+$
ODEOH
ODEOH
Q RI DUFKLYD
Q RI DUFKLY
H IRU HYDOXDWLR
H IRU HYDOXDWLR
FRQYHUWHG WR K
FRQYHUWHG WR
WKDWLQWKLVSRS
DWLQWKLVSR
K¶FDWHJRU\6
K¶FDWHJRU\
(*3+DQG
(*3+DQG
IILFLHQWSRZHU
IILFLHQWSRZ
QWURO JURXS DO
O JURXS DO
RQWKVLQWKHFR
RQWKVLQWKHF
5HVXOWV
5HVXOWV
HSRUWVZLOOQRW
HSRUWVZLOO
FORVHG WR DF
FORVHG WR DF
ROWKHUDS\VRR
ROWKHUDS\VR


6

3DJH

9HUVLRQ'DWH

%LEOLRJUDSK\

%XUULV+$UGHWDO,PSURYHPHQWVLQVXUYLYDODQGFOLQLFDOEHQHILWZLWKJHPFLWDELQHDV
ILUVWOLQHWKHUDS\IRUSDWLHQWVZLWKDGYDQFHGSDQFUHDVFDQFHUDUDQGRPL]HGWULDO-RXUQDO
RI FOLQLFDO RQFRORJ\  RIILFLDO MRXUQDO RI WKH $PHULFDQ 6RFLHW\ RI &OLQLFDO 2QFRORJ\



+LGDOJR 0 3DQFUHDWLF FDQFHU 7KH 1HZ (QJODQG MRXUQDO RI PHGLFLQH 



9RQ+RII''HWDO*HPFLWDELQHSOXVQDESDFOLWD[HOLVDQDFWLYHUHJLPHQLQSDWLHQWVZLWK
DGYDQFHG SDQFUHDWLF FDQFHU D SKDVH ,,, WULDO -RXUQDO RI FOLQLFDO RQFRORJ\  RIILFLDO
MRXUQDORIWKH$PHULFDQ6RFLHW\RI&OLQLFDO2QFRORJ\


&RQUR\7HWDO)2/),5,12;YHUVXVJHPFLWDELQHIRUPHWDVWDWLFSDQFUHDWLFFDQFHU7KH
1HZ(QJODQGMRXUQDORIPHGLFLQH


0DKDGHYDQ ' 	 9RQ +RII ''  7XPRUVWURPD LQWHUDFWLRQV LQ SDQFUHDWLF GXFWDO
DGHQRFDUFLQRPD0ROHFXODUFDQFHUWKHUDSHXWLFV


3URYHQ]DQR 33 HW DO (Q]\PDWLF WDUJHWLQJ RI WKH VWURPD DEODWHV SK\VLFDO EDUULHUV WR
WUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHUFHOO


7RROH %3 +\DOXURQDQ IURP H[WUDFHOOXODU JOXH WR SHULFHOOXODU FXH 1DWXUH UHYLHZV
&DQFHU


:KDWFRWW &- +DQ + 3RVQHU 5* +RVWHWWHU * 	 9RQ +RII '' 7DUJHWLQJ WKH WXPRU
PLFURHQYLURQPHQW LQ FDQFHU ZK\ K\DOXURQLGDVH GHVHUYHV D VHFRQG ORRN &DQFHU
GLVFRYHU\


7UHGDQ2*DOPDULQL&03DWHO.	7DQQRFN,)'UXJUHVLVWDQFHDQGWKHVROLGWXPRU
PLFURHQYLURQPHQW-RXUQDORIWKH1DWLRQDO&DQFHU,QVWLWXWH


3URYHQ]DQR 33 HW DO (Q]\PDWLF WDUJHWLQJ RI WKH VWURPD DEODWHV SK\VLFDO EDUULHUV WR
WUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHUFHOO


5DPDQDWKDQ5.HWDO$EVWUDFW$$&62


3URYHQ]DQR 33 HW DO (Q]\PDWLF WDUJHWLQJ RI WKH VWURPD DEODWHV SK\VLFDO EDUULHUV WR
WUHDWPHQWRISDQFUHDWLFGXFWDODGHQRFDUFLQRPD&DQFHUFHOO


%RUDG0-5DPDQDWKDQ5.HWDO$EVWUDFW$$6&2



CLOSED EFFECTIVE 07/01/2017
DODO
RJ\
RJ\

 
PHQLQSDWLHQWV
PHQLQSDWLHQWV
DO RQFRORJ\ 
RQFRORJ\ 


VWDWLFSDQFUHD
VWDWLFSDQFUH


LQWHUDFWLRQV
LQWHUDFWLRQ

 

RI WKH VWURPD
RI WKH V
RPD&DQFHU
PD&DQFHU
FHOOXODU JOXH W
HOOXODU JOXH
5* +RVWHWWH
5* +RVWH
HU ZK\ K\DO
 ZK\ K\DO


QL&03DWHO.
L&03DWHO
-RXUQDORIWK
-RXUQDORIWK
33 HW DO (Q
33 HW DO (
RISDQFUHDWLFG
RISDQFUH
DQDWKDQ5.H
KDQ5.H
3URYHQ]DQR 3
URYHQ]DQ
WUHDWPHQWR
WUHDWPHQW
%RUDG
%RUDG


6

3DJH

9HUVLRQ'DWH

,QIRUPHG&RQVHQW0RGHOIRU6
127(6)25/2&$/,167,787,21,1)250('&216(17$87+256
7KLVPRGHOLQIRUPHGFRQVHQWIRUPKDVEHHQUHYLHZHGE\WKH'&7'1&,DQGLVWKHRIILFLDO
FRQVHQWGRFXPHQWIRUWKLVVWXG\/RFDO,5%FKDQJHVWRWKLVGRFXPHQWDUHDOORZHG,QVWLWXWLRQV
VKRXOGDWWHPSWWRXVHVHFWLRQVRIWKLVGRFXPHQWWKDWDUHLQEROGW\SHLQWKHLUHQWLUHW\(GLWRULDO
FKDQJHVWRWKHVHVHFWLRQVPD\EHPDGHDVORQJDVWKH\GRQRWFKDQJHLQIRUPDWLRQRULQWHQW,I
WKHLQVWLWXWLRQDO,5%LQVLVWVRQPDNLQJGHOHWLRQVRUPRUHVXEVWDQWLYHPRGLILFDWLRQVWRWKHULVNVRU
DOWHUQDWLYHVVHFWLRQVWKH\PD\EHMXVWLILHGLQZULWLQJE\WKHLQYHVWLJDWRUDQGDSSURYHGE\WKH
,5%8QGHUWKHVHFLUFXPVWDQFHVWKHUHYLVHGODQJXDJHMXVWLILFDWLRQDQGDFRS\RIWKH,5%
PLQXWHVPXVWEHIRUZDUGHGWRWKH6:2*2SHUDWLRQV2IILFHIRUDSSURYDOEHIRUHDSDWLHQWPD\EH
UHJLVWHUHGWRWKLVVWXG\

3OHDVHSDUWLFXODUO\QRWHWKDWWKHTXHVWLRQVUHODWHGWREDQNLQJRIVSHFLPHQVIRUIXWXUHVWXG\
DUHLQEROGHGW\SHDQGPD\QRWEHFKDQJHGLQDQ\ZD\ZLWKRXWSULRUDSSURYDOIURPWKH
6:2*2SHUDWLRQV2IILFH
5HDGDELOLW\6WDWLVWLFV
)OHVFK5HDGLQJ(DVH 
WDUJHWHGDERYH
)OHVFK.LQFDLG*UDGH/HYHO WDUJHWHGEHORZ

x
,QVWUXFWLRQVDQGH[DPSOHVIRULQIRUPHGFRQVHQWDXWKRUVDUHLQ>LWDOLFV@
x
$EODQNOLQHBBBBBBBBBBLQGLFDWHVWKDWWKHORFDOLQYHVWLJDWRUVKRXOGSURYLGHWKH
DSSURSULDWHLQIRUPDWLRQEHIRUHWKHGRFXPHQWLVUHYLHZHGZLWKWKHSURVSHFWLYH
UHVHDUFKSDUWLFLSDQW
x
7KHWHUPVWXG\GRFWRUKDVEHHQXVHGWKURXJKRXWWKHPRGHOEHFDXVHWKHORFDO
LQYHVWLJDWRUIRUDFDQFHUWUHDWPHQWWULDOLVDSK\VLFLDQ,IWKLVPRGHOLVXVHGIRUD
WULDOLQZKLFKWKHORFDOLQYHVWLJDWRULVQRWDSK\VLFLDQDQRWKHUDSSURSULDWHWHUP
VKRXOGEHXVHGLQVWHDGRIVWXG\GRFWRU
x
7KHGDWHVRISURWRFROXSGDWHVLQWKHKHDGHUDQGLQWKHWH[WRIWKHFRQVHQWLVIRU
UHIHUHQFHWRWKLVPRGHORQO\DQGVKRXOGQRWEHLQFOXGHGLQWKHLQIRUPHGFRQVHQW
IRUPJLYHQWRWKHSURVSHFWLYHUHVHDUFKSDUWLFLSDQW
x
7KHORFDOLQIRUPHGFRQVHQWPXVWVWDWHZKLFKSDUWLHVPD\LQVSHFWWKHUHVHDUFK
UHFRUGV7KLVLQFOXGHVWKH1&,WKHGUXJPDQXIDFWXUHUIRULQYHVWLJDWLRQDOVWXGLHV
DQ\FRPSDQLHVRUJUDQWRUVWKDWDUHSURYLGLQJVWXG\VXSSRUWWKHVHZLOOEHOLVWHGLQ
WKHSURWRFRO
VPRGHOLQIRUPHGFRQVHQWIRUPDQG6:2*

6:2*PXVWEHOLVWHGDVRQHRIWKHSDUWLHVWKDWPD\LQVSHFWWKHUHVHDUFKUHFRUGV
LQDOOSURWRFROFRQVHQWIRUPVIRUZKLFKSDWLHQWUHJLVWUDWLRQLVEHLQJFUHGLWHGWR
6:2*7KLVLQFOXGHVFRQVHQWIRUPVIRUVWXGLHVZKHUHDOOSDWLHQWVDUHUHJLVWHUHG
GLUHFWO\WKURXJKWKH6:2*'DWD2SHUDWLRQV2IILFHDOOLQWHUJURXSVWXGLHVIRU
ZKLFKWKHUHJLVWUDWLRQLVEHLQJFUHGLWHGWR6:2*ZKHWKHUWKHUHJLVWUDWLRQLV
WKURXJKWKH6:2*'DWD2SHUDWLRQV2IILFHRUGLUHFWO\WKURXJKWKHRWKHUJURXSDV
ZHOODVFRQVHQWIRUPVIRUVWXGLHVZKHUHSDWLHQWVDUHUHJLVWHUHGYLD&768DQGWKH
UHJLVWUDWLRQLVFUHGLWHGWR6:2*
CLOSED EFFECTIVE 07/01/2017
XWLRQV
XWLRQV
(GLWRULDO
GLWRULDO
LQWHQW,I
LQWHQW,I
QVWRWKHULVNV
WRWKHULVNV
SSURYHGE\WK
SURYHGE\WK
RS\RIWKH,5
RS\RIWKH,5
EHIRUHDSDWL
EHIRUHDSDWL
JRIVSHFLPHQ
RIVSHFLP
WKRXWSULRUD
WKRXWSULRU
E




TIV
LQIRUPHGFRQ
LQIRUPHGF
LQGLFDWHVWKD
LQGLFDWHV
EHIRUHWKHGR
EHIRUHWKHGR
RFWRUKDVEH
RFWRUKDVEH
DFDQFHUWUHD
DFDQFHUW
KWKHORFDOLQY
KWKHORFDOLQY
XVHGLQVWHDG
XVHGLQVWHD
DWHVRISURWRF
I SURWRF
HUHQFHWRWKLV
UHQFHWRWKLV
IRUPJLYHQWR
IRUPJLYHQ
7KHORFDOL
7KHORFDOL
UHFRUGV
UHFRUGV
DQ\F
DQ\F
WKWK


6

3DJH

9HUVLRQ'DWH

x
:KHQFKDQJHVWRWKHSURWRFROUHTXLUHUHYLVLRQRIWKHLQIRUPHGFRQVHQWGRFXPHQW
WKH,5%VKRXOGKDYHDV\VWHPWKDWLGHQWLILHVWKHUHYLVHGFRQVHQWGRFXPHQWLQRUGHU
WRSUHFOXGHFRQWLQXHGXVHRIWKHROGHUYHUVLRQDQGWRLGHQWLI\ILOHFRSLHV$Q
DSSURSULDWHPHWKRGWRLGHQWLI\WKHFXUUHQWYHUVLRQRIWKHFRQVHQWLVIRUWKH,5%WR
VWDPSWKHILQDOFRS\RIWKHFRQVHQWGRFXPHQWZLWKWKHDSSURYDOGDWH7KHVWDPSHG
FRQVHQWGRFXPHQWLVWKHQSKRWRFRSLHGIRUXVH2WKHUV\VWHPVRILGHQWLI\LQJWKH
FXUUHQWYHUVLRQRIWKHFRQVHQWVXFKDVDGGLQJDYHUVLRQRUDSSURYDOGDWHDUHDOORZHG
DVORQJDVLWLVSRVVLEOHWRGHWHUPLQHGXULQJDQDXGLWWKDWWKHSDWLHQWVLJQHGWKHPRVW
FXUUHQWYHUVLRQRIWKHFRQVHQWIRUP
127(6)25/2&$/,19(67,*$7256
x
7KHJRDORIWKHLQIRUPHGFRQVHQWSURFHVVLVWRSURYLGHSHRSOHZLWKVXIILFLHQW
LQIRUPDWLRQIRUPDNLQJLQIRUPHGFKRLFHV7KHLQIRUPHGFRQVHQWIRUPSURYLGHVD
VXPPDU\RIWKHFOLQLFDOVWXG\DQGWKHLQGLYLGXDO
VULJKWVDVDUHVHDUFKSDUWLFLSDQW
,WVHUYHVDVDVWDUWLQJSRLQWIRUWKHQHFHVVDU\H[FKDQJHRILQIRUPDWLRQEHWZHHQWKH
LQYHVWLJDWRUDQGSRWHQWLDOUHVHDUFKSDUWLFLSDQW7KLVPRGHOIRUWKHLQIRUPHGFRQVHQW
IRUPLVRQO\RQHSDUWRIWKHODUJHUSURFHVVRILQIRUPHGFRQVHQW)RUPRUH
LQIRUPDWLRQDERXWLQIRUPHGFRQVHQWUHYLHZWKH5HFRPPHQGDWLRQVIRUWKH
'HYHORSPHQWRI,QIRUPHG&RQVHQW'RFXPHQWVIRU&DQFHU&OLQLFDO7ULDOVSUHSDUHG
E\WKH&RPSUHKHQVLYH:RUNLQJ*URXSRQ,QIRUPHG&RQVHQWLQ&DQFHU&OLQLFDO
7ULDOVIRUWKH1DWLRQDO&DQFHU,QVWLWXWH7KH:HEVLWHDGGUHVVIRUWKLVGRFXPHQWLV
KWWSFDQFHUJRYFOLQLFDOWULDOVXQGHUVWDQGLQJVLPSOLILFDWLRQRILQIRUPHGFRQVHQW
GRFV
x
$EODQNOLQHBBBBBBBBBBLQGLFDWHVWKDWWKHORFDOLQYHVWLJDWRUVKRXOGSURYLGHWKH
DSSURSULDWHLQIRUPDWLRQEHIRUHWKHGRFXPHQWLVUHYLHZHGZLWKWKHSURVSHFWLYH
UHVHDUFKSDUWLFLSDQW
x
6XJJHVWLRQIRU/RFDO,QYHVWLJDWRUV$Q1&,SDPSKOHWH[SODLQLQJFOLQLFDOWULDOVLV
DYDLODEOHIRU\RXUSDWLHQWV7KHSDPSKOHWLVWLWOHG7DNLQJ3DUWLQ&DQFHU
7UHDWPHQW5HVHDUFK6WXGLHV7KLVSDPSKOHWPD\EHRUGHUHGRQWKH1&,:HEVLWH
DWKWWSVFLVVHFXUHQFLQLKJRYQFLSXEVRUFDOO&$1&(5
WRUHTXHVWDIUHHFRS\
x
2SWLRQDOIHDWXUHIRU/RFDO,QYHVWLJDWRUV5HIHUHQFHDQGDWWDFKGUXJVKHHWV
SKDUPDFHXWLFDOLQIRUPDWLRQIRUWKHSXEOLFRURWKHUPDWHULDORQULVNV&KHFNZLWK
\RXUORFDO,5%UHJDUGLQJUHYLHZRIDGGLWLRQDOPDWHULDOV

7KHVHQRWHVIRUDXWKRUVDQGLQYHVWLJDWRUVDUHLQVWUXFWLRQDODQGVKRXOGQRWEHLQFOXGHGLQWKH
LQIRUPHGFRQVHQWIRUPJLYHQWRWKHSURVSHFWLYHUHVHDUFKSDUWLFLSDQW
CLOSED EFFECTIVE 07/01/2017
HG
HG
KH
HDOORZHG
DOORZHG
QHGWKHPRVW
HGWKHPRV
OHZLWKVXIILF
OHZLWKVXIILF
GFRQVHQWIRUP
GFRQVHQWIRU
KWVDVDUHVHDU
VDVDUHVH
QJHRILQIRUP
JHRILQIRUP
7KLVPRGHOIR
PRGHOIR
LQIRUPHGFRQ
LQIRUPHGFRQ
ZWKH5HFRP
ZWKH5HFR
XPHQWVIRU&
XPHQWVIRU&
XSRQ,QIRUP
XSRQ,QIRU
LWXWH7KH:
LWXWH7KH:
XQGHUVWDQGLQJ
XQGHUVWDQGLQJ
BBLQGLFDWHVW
BBLQGLFDWHV
RQEHIRUHWKH
QEHIRUHWKH
W
/RFDO,QYHVWLJ
/RFDO,QY
\R
\RXUSDWLHQWV
XUSDWLHQWV
5HVHDUFK6WX
5HVHDUFK
FLVVHFXUHQ
LVVHFXUHQ
WRUHTXHVW
WRUHTXHVWD
SWLRQDOIHDWXU
SWLRQDOIHD
SKDUPDFHXWL
SKDUPDFHXW
\RXUORFD
\RXUORFD
7KHVHQRWHVIR
KHVHQRWHVIR
LQIRUPHGFRQ
RUPHGF


6

3DJH

9HUVLRQ'DWH

6WXG\7LWOHIRU6WXG\3DUWLFLSDQWV7HVWLQJWKHDGGLWLRQRISHJ\ODWHG
UHFRPELQDQWKXPDQK\DOXURQLGDVH3(*3+WRXVXDOFKHPRWKHUDS\LQ
PHWDVWDWLFSDQFUHDWLFFDQFHU
2IILFLDO6WXG\7LWOHIRU,QWHUQHW6HDUFKRQKWWSZZZ&OLQLFDO7ULDOVJRY
6³$3KDVH,%,,5DQGRPL]HG6WXG\RI0RGLILHG)2/),5,12;
3HJ\ODWHG5HFRPELQDQW+XPDQ+\DOXURQLGDVH3(*3+YHUVXV0RGLILHG
)2/),5,12;$ORQHLQ3DWLHQWVZLWK*RRG3HUIRUPDQFH6WDWXV0HWDVWDWLF
3DQFUHDWLF$GHQRFDUFLQRPD´
7KLVLVDFOLQLFDOWULDODW\SHRIUHVHDUFKVWXG\<RXUVWXG\GRFWRUZLOOH[SODLQWKHFOLQLFDOWULDO
WR\RX&OLQLFDOWULDOVLQFOXGHRQO\SHRSOHZKRFKRRVHWRWDNHSDUW3OHDVHWDNH\RXUWLPHWR
PDNH\RXUGHFLVLRQDERXWWDNLQJSDUW<RXPD\GLVFXVV\RXUGHFLVLRQZLWK\RXUIULHQGVDQG
IDPLO\<RXFDQDOVRGLVFXVVLWZLWK\RXUKHDOWKFDUHWHDP,I\RXKDYHDQ\TXHVWLRQV\RXFDQ
DVN\RXUVWXG\GRFWRUIRUPRUHH[SODQDWLRQ
:KDWLVWKHXVXDODSSURDFKWRP\PHWDVWDWLFSDQFUHDWLFFDQFHU"
<RXDUHEHLQJDVNHGWRWDNHSDUWLQWKLVVWXG\EHFDXVH\RXKDYHPHWDVWDWLFSDQFUHDWLF
FDQFHU3HRSOHZKRDUHQRWLQDVWXG\DUHXVXDOO\WUHDWHGZLWKDFRPELQDWLRQRI
FKHPRWKHUDS\GUXJV'UXJVVXFKDVJHPFLWDELQHDUHXVHGDORQHRULQFRPELQDWLRQZLWK
RWKHUDJHQWV,QWKLVVWXG\DFRPELQDWLRQRIIOXRURXUDFLO)8R[DOLSODWLQLULQRWHFDQ
DQGOHXFRYRULQLVXVHGFRPPRQO\FDOOHGWKHP)2/),5,12;UHJLPHQ3OHDVHQRWHWKH
PRGLILHG)2/),5,12;UHJLPHQGLIIHUVIURPWKH)2/),5,12;UHJLPHQWKDWZDV
UHSRUWHGLQWKH1HZ(QJODQG-RXUQDORI0HGLFLQHWRLPSURYHWKHVXUYLYDORISDWLHQWV
ZLWKSDQFUHDWLFFDQFHU7KHPRGLILFDWLRQZDVPDGHWRSRVVLEO\UHGXFHVLGHHIIHFWV
RIWKLVUHJLPHQ)LOJUDVWLPRUSHJILOJUDVWLPDUHJLYHQZLWKWKHP)2/),5,12;UHJLPHQWR
LQFUHDVHWKHZKLWHEORRGFHOOFRXQW7KLVKHOSVWRORZHU\RXUULVNRIJHWWLQJLQIHFWLRQV
VHQWHQFHDGGHG

:KDWDUHP\RWKHUFKRLFHVLI,GRQRWWDNHSDUWLQWKLVVWXG\"
,I\RXGHFLGHQRWWRWDNHSDUWLQWKLVVWXG\\RXKDYHRWKHUFKRLFHV)RUH[DPSOH
x \RXPD\FKRRVHWRKDYHWKHXVXDODSSURDFKGHVFULEHGDERYH
x \RXPD\FKRRVHWRWDNHSDUWLQDGLIIHUHQWVWXG\LIRQHLVDYDLODEOH
x RU\RXFRXOGGHFLGHQRWWREHWUHDWHGIRUFDQFHUEXW\RXPD\ZDQWWRUHFHLYH
FRPIRUWFDUHWRUHOLHYHV\PSWRPV
x &RPIRUWFDUHDOVRFDOOHGSDOOLDWLYHFDUHKHOSVUHGXFHSDLQWLUHGQHVVDSSHWLWH
SUREOHPVDQGRWKHUSUREOHPVFDXVHGE\WKHFDQFHU,WGRHVQRWWUHDWWKHFDQFHU
GLUHFWO\EXWLQVWHDGWULHVWRLPSURYHKRZ\RXIHHO&RPIRUWFDUHWULHVWRNHHS
\RXDVDFWLYHDQGFRPIRUWDEOHDVSRVVLEOH

CLOSED EFFECTIVE 07/01/2017
RY
2;
;
0RGLILHG
0RGLILHG
0HWDVWDWL
0HWDVWDW
H[SODLQWKHFO
[SODLQWKH
OHDVHWDNH\R
OHDVHWDNH\R
VLRQZLWK\RX
VLRQZLWK\R
\RXKDYHDQ\
XKDYHDQ\
FSDQFUHDWL
SDQFUHDW
\EHFDXVH\RX
EHFDXVH\R
XVXDOO\WUHDWH
XDOO\WUHDW
PFLWDELQHDUH
FLWDELQHDU
DWLRQRI
WLRQRIIOX
I
FDOOHGWKH
FDOOHGWKHP)
QGLIIHUVIUR
QGLIIHUVIUR
JODQG
JODQG -RXUQ
-RXUQ


 7KHP
7KH
WLPRUSHJILOJ
LPRUSH
RGFHOOFRXQ
RGFHOOFRXQ

P\RWKHUFK
P\RWKHUF
GHFLGHQRWWR
HFLGHQRWWR
x
\RXP
\RX
x
\RX
\RX
x


6

3DJH

9HUVLRQ'DWH

:K\LVWKLVVWXG\EHLQJGRQH"
7KHSXUSRVHRIWKLVVWXG\LVWRFRPSDUHWKHVDIHW\DQGWHVWWKHJRRGDQGEDGHIIHFWVRIWKH
VWXG\GUXJSHJ\ODWHGUHFRPELQDQWKXPDQK\DOXURQLGDVH3(*3+ZLWKFRPELQDWLRQ
FKHPRWKHUDS\,QWKLVVWXG\\RXZLOOUHFHLYHWKHXVXDOFRPELQDWLRQFKHPRWKHUDS\FDOOHG
P)2/),5,12;ZLWKRUZLWKRXW3(*3+2WKHUVWXGLHVKDYHVKRZQWKH3(*3+FDQ
GDPDJHWKHRXWHUOD\HURIDWXPRUZKLFKFDQOHWPRUHFKHPRWKHUDS\UHDFKWKHWXPRUDQG
SRVVLEO\LQFUHDVHHIIHFWLYHQHVV3(*3+LVDQLQYHVWLJDWLRQDODJHQWLQWKLVVWXG\7KHUH
ZLOOEHDERXWSHRSOHWDNLQJSDUWLQWKLVVWXG\LQ3DUW,DQGLQ3DUW,,
:KDWDUHWKHVWXG\JURXSV"
7KLVVWXG\ZLOOEHFRQGXFWHGLQSDUWV3DWLHQWVZLOOWDNHSDUWLQHLWKHU3DUW,RU3DUW,,QRWERWK

3DUW,RIWKHVWXG\LVEHLQJGRQHWRWHVWWKHVDIHW\RIJLYLQJDOORIWKHVHGUXJVWRJHWKHU7KHILUVW
IHZSDWLHQWVZLOOJHWDKLJKHUGRVHRI3(*3+,IWKHVLGHHIIHFWVDUHWRRJUHDWWKHQH[WIHZ
SDWLHQWVZLOOJHWDUHGXFHGGRVH7KHGRVHZLOOUHGXFHHYHU\IHZSDWLHQWVXQWLOZHILQGWKHPRVW
DSSURSULDWHGRVHIRUWKHFRPELQDWLRQ

$OOSDWLHQWVLQ3DUW,ZLOOUHFHLYHP)2/),5,12;ILOJUDVWLPRUSHJILOJUDVWLPDQG3(*3+
P)2/),5,12;DQG3(*3+ZLOOEHJLYHQLQWRDYHLQ)LOJUDVWLPRUSHJILOJUDVWLP
ZLOOEHJLYHQDVDVKRWXQGHUWKHVNLQVHQWHQFHDGGHG(DFKWZRZHHNSHULRGLVFDOOHGD
³F\FOH´)RUHYHU\F\FOH\RXZLOOUHFHLYH3(*3+RQWKHILUVWGD\7KHQH[WGD\\RXZLOO
UHFHLYHR[DOLSODWLQRYHUDKRXUSHULRGWKHQOHXFRYRULQDQGLULQRWHFDQRYHUDKRXUSHULRG
WKHQ)8VSUHDGRXWRYHUDKRXUSHULRGWKHQGD\VRIILOJUDVWLPRUGRVHRISHJILOJUDVWLP
DIWHU)8LVGLVFRQWLQXHG<RXZLOOUHFHLYHGDLO\HQR[DSDULQRUVLPLODUORZPROHFXODUZHLJKW
KHSDULQWRUHGXFHWKHULVNRIEORRGFORWVXSGDWHG

7KHKRXU)8LQIXVLRQZLOOUHTXLUHSODFHPHQWRIDVSHFLDOFHQWUDOYHQRXVFDWKHWHU7KLVZLOO
EHDWXEHSODFHGLQWRDODUJHYHLQLQ\RXUFKHVW7KLVWXEHFDQEHRIWZREDVLFW\SHV,WFDQ
FRPHRXWWKURXJK\RXUVNLQRUEHDWWDFKHGWRDVPDOOFKDPEHUZLWKDOORIWKHGHYLFHXQGHU
\RXUVNLQ,QPRVWSDWLHQWVWKHVHFDQEHSODFHGXQGHUORFDODQHVWKHVLDLQDQRSHUDWLQJURRPDQG
FDQUHPDLQLQGHILQLWHO\+RZHYHU\RXPD\QHHGWREHLQWKHKRVSLWDOIRURQHGD\WRKDYHWKH
FDWKHWHUSXWLQ%ORRGVDPSOHVFDQEHWDNHQIURPWKHFDWKHWHUVR\RXPD\QRWKDYHWREHVWXFN
ZLWKDQHHGOH7KHSODFHPHQWRIWKLVFDWKHWHUFDUULHVDVPDOOULVNRILQIHFWLRQEOHHGLQJDQG
SHQHWUDWLRQRI\RXUOXQJ7KHULVNRILQIHFWLRQDQGEOHHGLQJPD\EHUHGXFHGE\WKHVWULFW
DWWHQWLRQWRWKHFDUHRIWKHFDWKHWHU<RXUGRFWRUZLOOWHDFKHU\RXKRZWRFDUHIRUWKHFDWKHWHU
7KHFDWKHWHUPD\EHUHPRYHGHDVLO\DWDQ\WLPHWKDWLWLVQRORQJHUQHFHVVDU\

2QFHVDIHW\RIWKHFRPELQDWLRQKDVEHHQHVWDEOLVKHGLQ3DUW,WKLVSDUWRIWKHVWXG\ZLOOHQGDQG
WKHVHFRQGSDUWZLOOVWDUW

3DWLHQWVLQ3DUW,,ZLOOEHSXWLQWRRQHRIWZRJURXSV*URXSZLOOUHFHLYHWKHVDPHWUHDWPHQW
H[DPVDQGVFDQVWKDWLVGHVFULEHGDERYHH[FHSW\RXZLOORQO\JHWP)2/),5,12;DQG
ILOJUDVWLPRUSHJILOJUDVWLPZLWKRXW3(*3+*URXSZLOOUHFHLYHWKHH[DFWVDPHWUHDWPHQW
WKDWLVJLYHQLQ3DUW,
CLOSED EFFECTIVE 07/01/2017
G
FDQ
DQ
PRUDQG
RUDQG
\\ 7KHUH
7KHU
DUW,,
UW,,
3DUW,RU3DUW
3DUW,RU3D
KHVHGUXJVWR
KHVHGUXJVWR
IHFWVDUHWRRJ
WVDUHWRR
IHZSDWLHQWV
IHZSDWLHQW
LOJUDVWLPRUS
OJUDVWLPRUS
RDYHLQ
RDYHLQ

HDGGHG
HDGGHG 

G
3(*3+RQ
3(*3+R
WKHQOHXFRYRU
HQOHXFRYRU
SHULRGWKHQ
HULRGWKHQ
OOUHFHLYHGDLO
OUHFHLYHGD
RRGFORWV
RGFORWVXSG
XS
ZLOOUHTXLUHS
ZLOOUHTXLUH
DUJHYHLQLQ\
DUJHYHLQL
XUVNLQRUE
VNLQRU
SDWLHQWVWKHV
SDWLHQWVWKHV
ILQLWHO\+RZ
ILQLWHO\+
Q%ORRGVDP
Q%ORRGVDP
GOH7KHSODF
H7KHSODF
WLRQRI\RXUO
LRQRI\RXUO
WLRQWRWKHFD
WLRQWRWKH
KHFDWKHWHUP
HFDWKHWHUP
2QFHVDIH
2QFHVDIH
WKHVHF
WKHVHF
3D
3


6

3DJH

9HUVLRQ'DWH

$FRPSXWHUZLOOUDQGRPO\SXW\RXLQDVWXG\JURXS7KLVLVGRQHEHFDXVHQRRQHNQRZVLIRQH
VWXG\JURXSLVEHWWHUWKHVDPHRUZRUVHWKDQWKHRWKHUJURXS2QFH\RXDUHSXWLQRQHJURXS
\RXFDQQRWVZLWFKWRWKHRWKHUJURXS1HLWKHU\RXQRU\RXUGRFWRUFDQFKRRVHZKLFKJURXS\RX
ZLOOEHLQ


+RZORQJZLOO,EHLQWKLVVWXG\"
<RXZLOOUHFHLYHWKHVWXG\GUXJVDVORQJDV\RXUGLVHDVHGRHVQRWJHWZRUVHDQGWKHVLGHHIIHFWV
DUHQRWWRRVHYHUH$IWHU\RXILQLVKWKHVWXG\GUXJV\RXUGRFWRUZLOOFRQWLQXHWRZDWFK\RXIRU
VLGHHIIHFWVDQGIROORZ\RXUFRQGLWLRQIRUXSWRWKUHH\HDUV

:KDWH[WUDWHVWVDQGSURFHGXUHVZLOO,KDYHLI,WDNHSDUWLQWKLVVWXG\"
VHFWLRQXSGDWHG
0RVWRIWKHH[DPVWHVWVDQGSURFHGXUHV\RXZLOOKDYHDUHSDUWRIWKHXVXDODSSURDFKIRU\RXU
FDQFHU
6PDOOSLHFHVRIFDQFHUWLVVXHUHPRYHGE\DSUHYLRXVVXUJHU\RUELRSV\DQGDEORRGVDPSOHZLOO
EHWDNHQIRUWKHVWXG\EHIRUH\RXEHJLQWKHVWXG\$GGLWLRQDOEORRGVDPSOHVZLOOEHWDNHQDW
KRXUVZHHNVDQGZHHNVLQWRWKHVWXG\7KHVHVDPSOHVDUHUHTXLUHGLQRUGHUIRU\RXWRWDNH
SDUWLQWKLVVWXG\EHFDXVHWKHUHVHDUFKRQWKHVDPSOHVLVDQLPSRUWDQWSDUWRIWKHVWXG\
5HVHDUFKHUVZLOOEHORRNLQJDWWKHVDPSOHVWRVHHLIDWXPRUPDUNHU&$IRUSDQFUHDWLF
FDQFHUGHFUHDVHVGXULQJWUHDWPHQW

1HLWKHU\RXQRU\RXUKHDOWKFDUHSODQLQVXUDQFHFDUULHUZLOOEHELOOHGIRUWKHFROOHFWLRQRIWKH
VDPSOHVWKDWZLOOEHXVHGIRUWKLVVWXG\<RXDQG\RXUVWXG\GRFWRUZLOOQRWUHFHLYHWKHUHVXOWVRI
DQ\WHVWVGRQHRQ\RXUVDPSOHV

:KDWSRVVLEOHULVNVFDQ,H[SHFWIURPWDNLQJSDUWLQWKLVVWXG\"
,I\RXFKRRVHWRWDNHSDUWLQWKLVVWXG\WKHUHLVDULVNWKDW\RXPD\
x /RVHWLPHDWZRUNRUKRPHDQGVSHQGPRUHWLPHLQWKHKRVSLWDORUGRFWRU¶VRIILFH
WKDQXVXDO
x %HDVNHGVHQVLWLYHRUSULYDWHTXHVWLRQVZKLFK\RXQRUPDOO\GRQRWGLVFXVV
7KHGUXJVXVHGLQWKLVVWXG\PD\DIIHFWKRZGLIIHUHQWSDUWVRI\RXUERG\ZRUNVXFKDV\RXU
OLYHUNLGQH\VKHDUWDQGEORRG7KHVWXG\GRFWRUZLOOEHWHVWLQJ\RXUEORRGDQGZLOOOHW\RX
NQRZLIFKDQJHVRFFXUWKDWPD\DIIHFW\RXUKHDOWK

7KHUHLVDOVRDULVNWKDW\RXFRXOGKDYHVLGHHIIHFWV

+HUHDUHLPSRUWDQWSRLQWVDERXWVLGHHIIHFWV
x 7KHVWXG\GRFWRUVGRQRWNQRZZKRZLOORUZLOOQRWKDYHVLGHHIIHFWV
x 6RPHVLGHHIIHFWVPD\JRDZD\VRRQVRPHPD\ODVWDORQJWLPHRUVRPHPD\QHYHU
JRDZD\
CLOSED EFFECTIVE 07/01/2017
HVLGHHIIHFWV
VLGHHIIHFWV
RZDWFK\RXI
ZDWFK\RXI
WLQWKLVVWX
WLQWKLVVW
RIWKHXVXDODS
IWKHXVXDODS
UJHU\RUELRSV
JHU\RUELRS
GGLWLRQDOEORR
GLWLRQDOEORR
VDPSOH
VDPSOHV DUH
DU U
DPSOHV
PSO
LVDQLP
LVD
RVHHLIDWXP
RVHHLIDWXP
DQLQVXUDQFHF
DQLQVXUDQFH
VWXG\
VWXG\ <RXD
<RXD
HVV
VFDQ,H[SH
VFDQ,H[
WDNHSDUWLQW
DNHSDUWLQW
PHDWZRUNR
PHDWZRU
XVXDO
XVXDO
HDVNHGVHQV
HDVNHGVHQ
H GUXJVXVHG
GUXJVXVHG
OLYHUNLGQH\
HUNLGQ
NQRZLIFK
RZLIFK
7KHU
7KHU


6

3DJH

9HUVLRQ'DWH

x 6RPHVLGHHIIHFWVPD\LQWHUIHUHZLWK\RXUDELOLW\WRKDYHFKLOGUHQ
x 6RPHVLGHHIIHFWVPD\EHVHULRXVDQGPD\HYHQUHVXOWLQGHDWK
+HUHDUHLPSRUWDQWSRLQWVDERXWKRZ\RXDQGWKHVWXG\GRFWRUFDQPDNHVLGHHIIHFWVOHVVRI
DSUREOHP
x 7HOOWKHVWXG\GRFWRULI\RXQRWLFHRUIHHODQ\WKLQJGLIIHUHQWVRWKH\FDQVHHLI\RX
DUHKDYLQJDVLGHHIIHFW
x 7KHVWXG\GRFWRUPD\EHDEOHWRWUHDWVRPHVLGHHIIHFWV
x 7KHVWXG\GRFWRUPD\DGMXVWWKHVWXG\GUXJVWRWU\WRUHGXFHVLGHHIIHFWV

7KHWDEOHVEHORZVKRZWKHPRVWFRPPRQDQGWKHPRVWVHULRXVVLGHHIIHFWVWKDWUHVHDUFKHUV
NQRZDERXW7KHUHPLJKWEHRWKHUVLGHHIIHFWVWKDWUHVHDUFKHUVGRQRW\HWNQRZDERXW,I
LPSRUWDQWQHZVLGHHIIHFWVDUHIRXQGWKHVWXG\GRFWRUZLOOGLVFXVVWKHVHZLWK\RX

3RVVLEOHVLGHHIIHFWVRIP)2/),5,12;DOOSDWLHQWVLQ3DUW,DQG3DUW,,VHFWLRQ
XSGDWHG

&20021620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJP)2/),5,12;/HXFRYRULQ)OXRURXUDFLO,ULQRWHFDQDQG
2[DOLSODWLQPRUHWKDQDQGXSWRPD\KDYH
x6HYHUHGLDUUKHD
x&RQVWLSDWLRQQDXVHDYRPLWLQJGLDUUKHD
x:HDNQHVV
x,QIHFWLRQHVSHFLDOO\ZKHQZKLWHEORRGFHOOFRXQWLVORZ
x+DLUORVV
x/RVVRIDSSHWLWHZHLJKWORVV
x$QHPLDZKLFKPD\UHTXLUHDEORRGWUDQVIXVLRQ
x)HYHUSDLQ
x'L]]LQHVVWLUHGQHVV
x&RXJKVKRUWQHVVRIEUHDWK
x5DVKLQFUHDVHGULVNRIVXQEXUQLWFKLQJ
x%UXLVLQJEOHHGLQJ
x6RUHVLQPRXWKZKLFKPD\FDXVHGLIILFXOW\VZDOORZLQJ
x5HGQHVVSDLQRUSHHOLQJRISDOPVDQGVROHV
x1XPEQHVVDQGWLQJOLQJRIWKHDUPVDQGOHJV
x)HHOLQJRISLQVDQGQHHGOHVLQDUPVDQGOHJV
x+HDUWEXUQ
x+HDGDFKH
CLOSED EFFECTIVE 07/01/2017
RX
FWV
WV
VWKDWUHVHDU
KDWUHVHDU
\HWNQRZDE
\HWNQRZD
WKHVHZLWK\R
KHVHZLWK
,DQG3DUW,,
,DQG3DUW,
(6(5,286
(6(5,
YRULQ
RULQ)O
)OXR
XR
QGXSWRP
QGXSWRP
E 0
RRGFHOOFRXQ
RRGFHOOFRX
HDEORRGWUD
HDEORRGWUD
RIEUHDWK
EUHDWK
GULVNRIVXQE
GULVNRIVXQ
HHGLQJ
HHGLQ
PRXWKZKLFK
PRXWKZKLFK
VVSDLQRUS
VVSDLQRUS
PEQHV
EQHVVDQGW
VDQGW
)HHOLQJRIS
)HHOLQJRIS
x +HDUWEXUQ
+HDUWEX
x +HDGDF
HDGDF
IV
CL
CL
CLO


6

3DJH

9HUVLRQ'DWH

2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJP)2/),5,12;/HXFRYRULQ)OXRURXUDFLO,ULQRWHFDQDQG
2[DOLSODWLQIURPWRPD\KDYH
x$WHDURUKROHLQLQWHUQDORUJDQVWKDWPD\UHTXLUHVXUJHU\
x $OOHUJLFUHDFWLRQZKLFKPD\FDXVHUDVKORZEORRGSUHVVXUHZKHH]LQJVKRUWQHVVRI
EUHDWKVZHOOLQJRIWKHIDFHRUWKURDW
x%ORRGFORWZKLFKPD\FDXVHVZHOOLQJSDLQVKRUWQHVVRIEUHDWK
x6FDUULQJRIWKHOXQJV
x&KHVWSDLQ
x$EQRUPDOKHDUWEHDWZKLFKPD\FDXVHIDLQWLQJ
x+RDUVHQHVV
x$EQRUPDOH\HPRYHPHQWZDWHULQJH\HVGLVFRPIRUWIURPOLJKWEOXUUHGYLVLRQZLWK
FKDQFHRIEOLQGQHVV
x6ZHOOLQJDQGUHGQHVVRIWKHH\H
x3UREOHPZLWKH\HOLG
x+HDULQJORVV
x'U\H\HPRXWKVNLQ
x)OXLGLQWKHEHOO\
x'LIILFXOW\ZDONLQJRSHQLQJPRXWKWDONLQJZLWKEDODQFHDQGKHDULQJVPHOOLQJHDWLQJ
VOHHSLQJHPSW\LQJWKHEODGGHU
x6ZHOOLQJRIWKHERG\ZKLFKPD\FDXVHVKRUWQHVVRIEUHDWK
x%ORFNDJHRIWKHDLUZD\ZKLFKPD\FDXVHVKRUWQHVVRIEUHDWKFRXJKZKHH]LQJ
x%OHHGLQJIURPPXOWLSOHVLWHVLQFOXGLQJYDJLQDOEOHHGLQJEOHHGLQJRIWKHWHVWLVRU
EOHHGLQJRIWKHEUDLQ
x,QWHUQDOEOHHGLQJZKLFKPD\FDXVHEODFNWDUU\VWRROEORRGLQYRPLWRUXULQHRU
FRXJKLQJXSEORRG
x'DPDJHWRRUJDQVZKLFKPD\FDXVHVKRUWQHVVRIEUHDWK
x&KLOOV
x6ZHOOLQJDQGUHGQHVVDWWKHVLWHRIWKHPHGLFDWLRQLQMHFWLRQ
x/LYHUGDPDJHZKLFKPD\FDXVH\HOORZLQJRIH\HVDQGVNLQ
x.LGQH\GDPDJHZKLFKPD\UHTXLUHGLDO\VLV
x:HLJKWJDLQGHK\GUDWLRQSDVVLQJJDV
x&KDQJHVLQWDVWHYRLFH
x6WURNHZKLFKPD\FDXVHSDUDO\VLVZHDNQHVV
x,QDELOLW\WRPRYHVKRXOGHURUWXUQKHDG
x0XVFOHZHDNQHVV
x6HL]XUH
x:RUU\FRQIXVLRQGHSUHVVLRQ
x,QFUHDVHGXULQDWLRQ
x6WXII\QRVHKLFFXSVVLQXVSUREOHPV
x,QFUHDVHGVZHDWLQJIOXVKLQJKRWIODVKHV
x+LJKEORRGSUHVVXUH
CLOSED EFFECTIVE 07/01/2017
RI
KWEOXUUHGY
KWEOXUUHGY
QJZLWKEDOD
QJZLWKEDOD
XVHVKRUWQHVV
VHVKRUWQHV
D\FDXVHVKR
D\FDXVHVK
QFOXGLQJYDJ
QFOXGLQJYDJ
PD\FDXVHE
PD\FDXVHE
ZKLFKPD\F
ZKLFKPD
GUHGQHVVDWW
UHGQHVVDWW
PDJHZKLFKP
PDJHZKLF
\GDPDJHZK
\GDPDJHZK
JKWJDLQGHK
JKWJDLQGH
&KDQJHVLQWD
DQJHVLQWD
x 6WURN
6WURNHZKL
HZK
x ,QDELOLW
EL
x 0XVF
0XVF
x 6H
6
7
CLO
17


6

3DJH

9HUVLRQ'DWH

2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJP)2/),5,12;/HXFRYRULQ)OXRURXUDFLO,ULQRWHFDQDQG
2[DOLSODWLQIURPWRPD\KDYH
x/RZEORRGSUHVVXUHZKLFKPD\FDXVHIHHOLQJIDLQW
5$5($1'6(5,286
,QSHRSOHUHFHLYLQJP)2/),5,12;/HXFRYRULQ)OXRURXUDFLO,ULQRWHFDQDQG
2[DOLSODWLQRUIHZHUPD\KDYH
x$QHZFDQFHUUHVXOWLQJIURPWUHDWPHQWRIHDUOLHUFDQFHU
x%UDLQGDPDJH5HYHUVLEOH3RVWHULRU/HXNRHQFHSKDORSDWK\6\QGURPHZKLFKPD\
FDXVHKHDGDFKHVHL]XUHEOLQGQHVV
3RVVLEOH6LGH(IIHFWVRI)LOJUDVWLPVHFWLRQDGGHGVHFWLRQUHLQVHUWHG
&20021620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ)LOJUDVWLPPRUHWKDQDQGXSWRPD\KDYH
x1DXVHDYRPLWLQJ
x3DLQLQERQH
2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ)LOJUDVWLPIURPWRPD\KDYH
x$QHPLDZKLFKPD\FDXVHWLUHGQHVVRUPD\UHTXLUHWUDQVIXVLRQ
x'DPDJHWRWKHOXQJVZKLFKPD\FDXVHVKRUWQHVVRIEUHDWK
x,QWHUQDOEOHHGLQJZKLFKPD\FDXVHFRXJKLQJXSEORRG
x6ZHOOLQJRUWHQGHUQHVVRIYHVVHOV
5$5($1'6(5,286
,QSHRSOHUHFHLYLQJ)LOJUDVWLPRUIHZHUPD\KDYH
x5XSWXUHRIWKHVSOHHQOHDGLQJWREOHHGLQJLQWKHEHOO\
3RVVLEOH6LGH(IIHFWVRI3HJILOJUDVWLPVHFWLRQUHLQVHUWHG
&20021620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ3HJILOJUDVWLPPRUHWKDQDQGXSWRPD\KDYH
x3DLQLQERQH
2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ3HJILOJUDVWLPIURPWRPD\KDYH
x$QHPLDZKLFKPD\FDXVHWLUHGQHVVRUPD\UHTXLUHWUDQVIXVLRQ
x$OOHUJLFUHDFWLRQZKLFKPD\FDXVHUDVKORZEORRGSUHVVXUHZKHH]LQJVKRUWQHVVRI
EUHDWKVZHOOLQJRIWKHIDFHRUWKURDW
x'DPDJHWRWKHOXQJVZKLFKPD\FDXVHVKRUWQHVVRIEUHDWK
5$5($1'6(5,286
,QSHRSOHUHFHLYLQJ3HJILOJUDVWLPRUIHZHUPD\KDYH
x5XSWXUHRIWKHVSOHHQZLWKEOHHGLQJLQWKHEHOO\
7
DQG
QG
7
17
KLFKPD\
LFKPD\
01
1/
HLQVHUWHG
HLQVHUWHG
286
86
DQGXSWR
QGXSWR
7/0
07
E
0$<%(6(
0$<%(6(
UDVWLPIURP
UDVWLPIURP
VE
PD\UHTXLUH
PD\UHTXLU
VHVKRUWQHV
VHVKRUWQHVV
VHFRXJKLQJ
VHFRXJKLQ
HOV
HOV
TIV
EC
5$5(
5$5(
SHRSOHUHFHLY
SHRSOHUHFH
FE
HHQOHDGLQJW
HHQOHDGL
FF
EF
IHFWVR
HF
I3HJIL
I 3HJI
&
SHRSOHUH
SHRSOHU
D E
LQERQH
QERQH
ED
SE
SE
O
x $QHP
$QHP
x $OO
$
E
O
CLO


6

3DJH

9HUVLRQ'DWH

,QDGGLWLRQWRVLGHHIIHFWVRXWOLQHGDERYHSHRSOHZKRDUHLQ3DUW,DQG3DUW,,6WXG\*URXS
PD\DOVRH[SHULHQFHWKHDGGLWLRQDOSRVVLEOHVLGHHIIHFWVRI3(*3+DQGHQR[DSDULQ
OLVWHGEHORZ
&20021620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ3(*3+PRUHWKDQDQGXSWRPD\KDYH
x&KDQJHVLQYRLFH
x0XVFOHVSDVPV
x6ZHOOLQJRIWKHERG\
x%ORRGFORWZKLFKPD\FDXVHVZHOOLQJSDLQVKRUWQHVVRIEUHDWKPRYHG
2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ3(*3+IURPWRPD\KDYH
x:HLJKWJDLQ
x,QIHFWLRQ
x0XVFOHZHDNQHVV
3RVVLEOH6LGH(IIHFWVRI(QR[DSDULQ6HFWLRQDGGHG
2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJHQR[DSDULQIURPWRPD\KDYH
x$QHPLDZKLFKPD\FDXVHWLUHGQHVVRUPD\UHTXLUHEORRGWUDQVIXVLRQV
x%ORRGFORW
x%OHHGLQJ
x)HYHU
5$5($1'6(5,286
,QSHRSOHUHFHLYLQJHQR[DSDULQRUIHZHUPD\KDYH
x'LDUUKHD
x1DXVHD
x%UXLVLQJ
x$EQRUPDOKHDUWEHDW
x+HDUWIDLOXUHZKLFKPD\FDXVHVKRUWQHVVRIEUHDWKVZHOOLQJRIDQNOHVDQGWLUHGQHVV
x%OHHGLQJLQWKHEUDLQZKLFKPD\FDXVHKHDGDFKHFRQIXVLRQ
x,QIHFWLRQ
7KHLQFLGHQFHRIEORRGFORWVWRWKHOHJVOXQJVKHDUWDQGEUDLQVWURNHPD\EHLQFUHDVHGE\
DGPLQLVWUDWLRQRI3(*3+)RUWKLVUHDVRQDQ\V\PSWRPVVXFKDVOHJVZHOOLQJVKRUWQHVV
RIEUHDWKFKHVWSDLQGLIILFXOW\EUHDWKLQJKHDGDFKHZHDNQHVVRIDUPVOHJVHWFVKRXOGEH
LPPHGLDWHO\EHUHSRUWHGWR\RXUVWXG\GRFWRUDGGHG,I\RXDUHLQ*URXS\RX
ZLOOQHHGWRWDNHHQR[DSDULQGDLO\E\LQMHFWLRQLQWR\RXUVNLQZKLOHRQVWXG\LQRUGHUWR
UHGXFHWKLVULVNDGGHGUHYLVHG
CLOSED EFFECTIVE 07/01/2017
17




017
17
1/2 17
86
86
PD\KDYH
PD\KDY
/0
07/
E
GHG
GHG
20(0$<
20(0$<
J HQR[DSDULQ
HQR[DSDUL
TIV
VVRUPD\UH
VVRUPD\
CT
FF
5
QSHRSOH
SHRSOH
FF
J
RUPDOKHDUWE
PDOKHDUWE
HDUWIDLOXUHZ
DUWIDLOXUHZ
%OHHGLQJLQ
%OHHGLQJL
x ,QIHFWLRQ
HFWLR
E
LO
LO
LO
7KHLQF
7KHLQ
DGPL
DGP
RI
R


6

3DJH

9HUVLRQ'DWH

/HW\RXUVWXG\GRFWRUNQRZRIDQ\TXHVWLRQV\RXKDYHDERXWSRVVLEOHVLGHHIIHFWV<RXFDQ
DVNWKHVWXG\GRFWRUTXHVWLRQVDERXWVLGHHIIHFWVDWDQ\WLPH

5HSURGXFWLYHULVNV<RXVKRXOGQRWJHWSUHJQDQWEUHDVWIHHGRUIDWKHUDEDE\ZKLOHLQWKLV
VWXG\7KHGUXJVXVHGLQWKLVVWXG\FRXOGEHYHU\GDPDJLQJWRDQXQERUQEDE\&KHFNZLWK
WKHVWXG\GRFWRUDERXWZKDWW\SHVRIELUWKFRQWURORUSUHJQDQF\SUHYHQWLRQWRXVHZKLOHLQ
WKLVVWXG\DQGIRUZHHNVDIWHUVWRSSLQJVWXG\GUXJ

:KDWSRVVLEOHEHQHILWVFDQ,H[SHFWIURPWDNLQJSDUWWKLVVWXG\"
,WLVQRWSRVVLEOHWRNQRZDWWKLVWLPHLIWKHVWXG\GUXJLVEHWWHUWKDQWKHXVXDODSSURDFKVR
WKLVVWXG\PD\RUPD\QRWKHOS\RX7KLVVWXG\ZLOOKHOSUHVHDUFKHUVOHDUQWKLQJVWKDWZLOO
KHOSSHRSOHLQWKHIXWXUH

&DQ,VWRSWDNLQJSDUWLQWKLVVWXG\"
<HV<RXFDQGHFLGHWRVWRSDWDQ\WLPH,I\RXGHFLGHWRVWRSIRUDQ\UHDVRQLWLVLPSRUWDQWWROHW
WKHVWXG\GRFWRUNQRZDVVRRQDVSRVVLEOHVR\RXFDQVWRSVDIHO\,I\RXVWRS\RXFDQGHFLGH
ZKHWKHURUQRWWROHWWKHVWXG\GRFWRUFRQWLQXHWRSURYLGH\RXUPHGLFDOLQIRUPDWLRQWRWKH
RUJDQL]DWLRQUXQQLQJWKHVWXG\
7KHVWXG\GRFWRUZLOOWHOO\RXDERXWQHZLQIRUPDWLRQRUFKDQJHVLQWKHVWXG\WKDWPD\DIIHFW
\RXUKHDOWKRU\RXUZLOOLQJQHVVWRFRQWLQXHLQWKHVWXG\
7KHVWXG\GRFWRUPD\WDNH\RXRXWRIWKHVWXG\
x ,I\RXUKHDOWKFKDQJHVDQGWKHVWXG\LVQRORQJHULQ\RXUEHVWLQWHUHVW
x ,IQHZLQIRUPDWLRQEHFRPHVDYDLODEOH
x ,I\RXGRQRWIROORZWKHVWXG\UXOHV
x ,IWKHVWXG\LVVWRSSHGE\WKHVSRQVRU,5%RU)'$

:KDWDUHP\ULJKWVLQWKLVVWXG\"
7DNLQJSDUWLQWKLVVWXG\LV\RXUFKRLFH1RPDWWHUZKDWGHFLVLRQ\RXPDNHDQGHYHQLI\RXU
GHFLVLRQFKDQJHVWKHUHZLOOEHQRSHQDOW\WR\RX<RXZLOOQRWORVHPHGLFDOFDUHRUDQ\OHJDO
ULJKWV

)RUTXHVWLRQVDERXW\RXUULJKWVZKLOHLQWKLVVWXG\FDOOWKHBBBBBBBBBBBBBBBBBBBBBBBBLQVHUW
QDPHRIFHQWHU,QVWLWXWLRQDO5HYLHZ%RDUGDWBBBBBBBBBBBBBBBBBBLQVHUWWHOHSKRQHQXPEHU
1RWHWR/RFDO,QYHVWLJDWRU&RQWDFWLQIRUPDWLRQIRUSDWLHQWUHSUHVHQWDWLYHVRURWKHULQGLYLGXDOV
DWDORFDOLQVWLWXWLRQZKRDUHQRWRQWKH,5%RUUHVHDUFKWHDPEXWWDNHFDOOVUHJDUGLQJFOLQLFDO
WULDOTXHVWLRQVFDQDOVREHOLVWHGKHUH
:KDWDUHWKHFRVWVRIWDNLQJSDUWLQWKLVVWXG\"
7KH3(*3+ZLOOEHVXSSOLHGDWQRFKDUJHZKLOH\RXWDNHSDUWLQWKLVVWXG\7KHFRVWRIJHWWLQJ
WKH3(*3+UHDG\DQGJLYLQJLWWR\RXLVQRWSDLGE\WKHVWXG\VSRQVRUVR\RXRU\RXU
CLOSED EFFECTIVE 07/01/2017
LWK
K
KLOHLQ
HLQ
XVXDODSSUR
XVXDODSSU
OHDUQWKLQJV
OHDUQWKLQJV
WRSIRUDQ\UH
WRSIRUDQ\UH
RSVDIHO\,I\
SVDIHO\,I
YLGH\RXUPH
YLGH\RXUPH
PDWLRQRUFKDQ
PDWLRQRUF
QWKHVWXG\
QWKHVWXG
WKHVWXG\
KHVWXG\
KHVWXG\LVQR
KHVWXG\LVQ
PHVDYDLODEOH
PHVDYDLODEOH
KHVWXG\UXOHV
KHVWXG\
SHGE\WKHVS
SHGE\WKHVS
JKWVLQWKLV
LQWKLV
WKLVVWXG\LV
WKLVVWXG\
DQJHVWKHUHZ
DQJHVWKHUHZ
UTXHVWLRQVDE
UTXHVWLRQVDE
QDPHRIFHQWH
PHRIFH
1RWHWR/
WH WR /
DWDORF
DWDOR
WULDO
WULDO


6

3DJH

9HUVLRQ'DWH

LQVXUDQFHFRPSDQ\PD\KDYHWRSD\IRUWKLV,WLVSRVVLEOHWKDWWKH3(*3+PD\QRWFRQWLQXH
WREHVXSSOLHGIUHHZKLOH\RXDUHRQWKHVWXG\$OWKRXJKQRWOLNHO\LIWKLVRFFXUV\RXUVWXG\
GRFWRUZLOOWDONWR\RXDERXW\RXURSWLRQV

<RXDQGRU\RXUKHDOWKSODQLQVXUDQFHFRPSDQ\ZLOOQHHGWRSD\IRUDOORIWKHRWKHUFRVWVRI
WUHDWLQJ\RXUFDQFHUZKLOHLQWKLVVWXG\LQFOXGLQJWKHFRVWRIPDQDJLQJDQ\VLGHHIIHFWV%HIRUH
\RXGHFLGHWREHLQWKHVWXG\\RXVKRXOGFKHFNZLWK\RXUKHDOWKSODQRULQVXUDQFHFRPSDQ\WR
ILQGRXWH[DFWO\ZKDWWKH\ZLOOSD\IRU

<RXZLOOQRWEHSDLGIRUWDNLQJSDUWLQWKLVVWXG\

:KDWKDSSHQVLI,DPLQMXUHGRUKXUWEHFDXVH,WRRNSDUWLQWKLVVWXG\"
,I\RXDUHLQMXUHGRUKXUWDVDUHVXOWRIWDNLQJSDUWLQWKLVVWXG\DQGQHHGPHGLFDOWUHDWPHQW
SOHDVHWHOO\RXUVWXG\GRFWRU7KHVWXG\VSRQVRUVZLOOQRWRIIHUWRSD\IRUPHGLFDOWUHDWPHQWIRU
LQMXU\<RXULQVXUDQFHFRPSDQ\PD\QRWEHZLOOLQJWRSD\IRUVWXG\UHODWHGLQMXU\,I\RXKDYH
QRLQVXUDQFH\RXZRXOGEHUHVSRQVLEOHIRUDQ\FRVWV
,I\RXIHHOWKLVLQMXU\ZDVDUHVXOWRIPHGLFDOHUURU\RXNHHSDOO\RXUOHJDOULJKWVWRUHFHLYH
SD\PHQWIRUWKLVHYHQWKRXJK\RXDUHLQDVWXG\
:KRZLOOVHHP\PHGLFDOLQIRUPDWLRQ"
<RXUSULYDF\LVYHU\LPSRUWDQWWRXVDQGWKHUHVHDUFKHUVZLOOPDNHHYHU\HIIRUWWRSURWHFWLW
<RXULQIRUPDWLRQPD\EHJLYHQRXWLIUHTXLUHGE\ODZ)RUH[DPSOHFHUWDLQVWDWHVUHTXLUH
GRFWRUVWRUHSRUWWRKHDOWKERDUGVLIWKH\ILQGDGLVHDVHOLNHWXEHUFXORVLV+RZHYHUWKH
UHVHDUFKHUVZLOOGRWKHLUEHVWWRPDNHVXUHWKDWDQ\LQIRUPDWLRQWKDWLVUHOHDVHGZLOOQRWLGHQWLI\
\RX6RPHRI\RXUKHDOWKLQIRUPDWLRQDQGLQIRUPDWLRQDERXW\RXUVSHFLPHQIURPWKLVVWXG\
ZLOOEHNHSWLQDFHQWUDOGDWDEDVHIRUUHVHDUFK<RXUQDPHRUFRQWDFWLQIRUPDWLRQZLOOQRWEHSXW
LQWKHGDWDEDVH

7KHUHDUHRUJDQL]DWLRQVWKDWPD\LQVSHFW\RXUUHFRUGV7KHVHRUJDQL]DWLRQVDUHUHTXLUHGWRPDNH
VXUH\RXULQIRUPDWLRQLVNHSWSULYDWHXQOHVVUHTXLUHGE\ODZWRSURYLGHLQIRUPDWLRQ6RPHRI
WKHVHRUJDQL]DWLRQVDUH
x >/LVWUHOHYDQWRUJDQL]DWLRQVOLNHVWXG\VSRQVRUVORFDO,5%HWF@
x 7KHVWXG\VSRQVRUDQGDQ\GUXJFRPSDQ\VXSSRUWLQJWKHVWXG\
x 7KH,QVWLWXWLRQDO5HYLHZ%RDUG,5%LVDJURXSRISHRSOHZKRUHYLHZWKHUHVHDUFKZLWK
WKHJRDORISURWHFWLQJWKHSHRSOHZKRWDNHSDUWLQWKHVWXG\
x 7KH)RRGDQG'UXJ$GPLQLVWUDWLRQDQGWKH1DWLRQDO&DQFHU,QVWLWXWHLQWKH86DQG
VLPLODURQHVLIRWKHUFRXQWULHVDUHLQYROYHGLQWKHVWXG\

>1RWHWR/RFDO,QYHVWLJDWRUV7KH1&,KDVUHFRPPHQGHGWKDW+,3$$UHJXODWLRQVEHDGGUHVVHG
E\WKHORFDOLQVWLWXWLRQ7KHUHJXODWLRQVPD\RUPD\QRWEHLQFOXGHGLQWKHLQIRUPHGFRQVHQW
IRUPGHSHQGLQJRQORFDOLQVWLWXWLRQDOSROLF\@

CLOSED EFFECTIVE 07/01/2017
IRUHUH
DQ\WR
DQ\WR
QWKLVVWXG\
QWKLVVWXG
QHHGPHGLFDO
HHGPHGLFDO
RSD\IRUPHG
SD\IRUPHG
UVWXG\UHODWH
XG\UHODWH
RXNHHSDOO\R
HHSDOO\R
RQ"
RQ"
QG
QGWKHUHVHDUF
WKHUHVHDU
LIUHTXLUHGE\
LIUHTXLUHGE
VLIWKH\ILQGD
LIWKH\ILQGD
RPDNHVXUHW
RPDNHVXUH
QIRUPDWLRQD
QIRUPDWLRQ
GDWDEDVHIRUU
GDWDEDVHIR
QL]DWLRQVWKDW
L]DWLRQVWK
IRUPDWLRQLVN
RUPDWLRQLVN
DQL]DWLRQVDUH
QL]DWLRQVDUH
>/LV
>/LVWUHOHYDQ
WUHOHYDQ
x
7KHVWXG\
7KHVWXG
x
7KH,Q
7KH,Q
WKH
WKH
x


6

3DJH

9HUVLRQ'DWH

:KHUHFDQ,JHWPRUHLQIRUPDWLRQ"
<RXPD\YLVLWWKH1&,:HEVLWHDWKWWSFDQFHUJRYIRUPRUHLQIRUPDWLRQDERXWVWXGLHVRU
JHQHUDOLQIRUPDWLRQDERXWFDQFHU<RXPD\DOVRFDOOWKH1&,&DQFHU,QIRUPDWLRQ6HUYLFHWRJHW
WKHVDPHLQIRUPDWLRQDW&$1&(5

$GHVFULSWLRQRIWKLVFOLQLFDOWULDOZLOOEHDYDLODEOHRQKWWSZZZ&OLQLFDO7ULDOVJRYDV
UHTXLUHGE\86/DZ7KLV:HEVLWHZLOOQRWLQFOXGHLQIRUPDWLRQWKDWFDQLGHQWLI\\RX$W
PRVWWKH:HEVLWHZLOOLQFOXGHDVXPPDU\RIWKHUHVXOWV<RXFDQVHDUFKWKLV:HEVLWHDW
DQ\WLPH

>1RWHWR,QIRUPHG&RQVHQW$XWKRUVWKHDERYHSDUDJUDSKFRPSOLHVZLWKWKHQHZ)'$UHJXODWLRQ
IRXQGDW&)5FDQGPXVWEHLQFOXGHGYHUEDWLPLQDOOLQIRUPHGFRQVHQWGRFXPHQWV7KH
WH[WLQWKLVSDUDJUDSKFDQQRWEHUHYLVHG@
:KRFDQDQVZHUP\TXHVWLRQVDERXWWKLVVWXG\"
<RXFDQWDONWRWKHVWXG\GRFWRUDERXWDQ\TXHVWLRQVRUFRQFHUQV\RXKDYHDERXWWKLVVWXG\RUWR
UHSRUWVLGHHIIHFWVRULQMXULHV&RQWDFWWKHVWXG\GRFWRUBBBBBBBBBBBBBBBBBBLQVHUWQDPHRI
VWXG\GRFWRU>V@DWBBBBBBBBBBBBBBBBBBLQVHUWWHOHSKRQHQXPEHU

127(8VHWKHIROORZLQJW\SHVRIIRUPDWRQO\ZKHQWKHDGGLWLRQDOVWXGLHVDUHRSWLRQDOIRUWKH
SDWLHQW:KHQPDQGDWRU\WKHGHVFULSWLRQVKRXOGEHLPEHGGHGDVDSDUWRIWKHVWXG\GHVFULSWLRQ
LQWKHPDLQFRQVHQW

$'',7,21$/678',(66(&7,21
7KLVVHFWLRQLVDERXWRSWLRQDOVWXGLHV\RXFDQFKRRVHWRWDNHSDUWLQ
7KLVSDUWRIWKHFRQVHQWIRUPLVDERXWRSWLRQDOVWXGLHVWKDW\RXFDQFKRRVHWRWDNHSDUWLQ<RX
ZLOOQRWJHWKHDOWKEHQHILWVIURPDQ\RIWKHVHVWXGLHV7KHUHVHDUFKHUVOHDGLQJWKLVRSWLRQDOVWXG\
KRSHWKHUHVXOWVZLOOKHOSRWKHUSHRSOHZLWKFDQFHULQWKHIXWXUH
7KHUHVXOWVZLOOQRWEHDGGHGWR\RXUPHGLFDOUHFRUGVQRUZLOO\RXRU\RXUVWXG\GRFWRUNQRZ
WKHUHVXOWV
<RXZLOOQRWEHELOOHGIRUWKHVHRSWLRQDOVWXGLHV<RXFDQVWLOOWDNHSDUWLQWKHPDLQVWXG\HYHQLI
\RXVD\µQR¶WRDQ\RUDOORIWKHVHVWXGLHV,I\RXVLJQXSIRUEXWFDQQRWFRPSOHWHDQ\RIWKH
VWXGLHVIRUDQ\UHDVRQ\RXFDQVWLOOWDNHSDUWLQWKHPDLQVWXG\
&LUFOH\RXUFKRLFHRI³\HV´RU³QR´IRUHDFKRIWKHIROORZLQJVWXGLHV
CLOSED EFFECTIVE 07/01/2017
YDV
DV
LI\\RX$W
I\\RX$W
:HEVLWHDW
:HEVLWHDW
KHQHZ)'$
KHQHZ)'$
HGFRQVHQWGR
HGFRQVHQWG
FRQFHUQV\RX
FRQFHUQV\R
RUBBBBBBBBB
RUBBBBBBBBB
HOHSKRQHQXP
HOHSKRQHQ
QO\ZKHQWKH
QO\ZKHQWKH
QVKRXOGEHLP
VKRXOGEHLP
7,21
7,21
RSWLRQDOVWX
RSWLRQDOVW
HQWIRUPLVDE
IRUPLVD
KEHQHILWVIURP
KEHQHILWVIURP
VZLOOKHOSRW
VZLOOKHOS
OWVZLOOQRWEH
OWVZLOOQRWE
XOWV
OWV
<RXZLOOQRW
XZLOOQ
\RXVD\µQ
VD\µQ
VWXGLHV
VWXGLHV
&


6

3DJH

9HUVLRQ'DWH


)XWXUH&RQWDFW
,DJUHHWRDOORZP\VWXG\GRFWRURUVRPHRQHDSSURYHGE\P\VWXG\GRFWRUWR
FRQWDFWPHUHJDUGLQJIXWXUHUHVHDUFKLQYROYLQJP\SDUWLFLSDWLRQLQWKLVVWXG\
<HV
1R

2SWLRQDO%LREDQNLQJIRU3RVVLEOH)XWXUH6WXGLHV
5HVHDUFKHUVDUHWU\LQJWROHDUQPRUHDERXWFDQFHUGLDEHWHVDQGRWKHUKHDOWKSUREOHPV0XFKRI
WKLVUHVHDUFKLVGRQHXVLQJVDPSOHVIURP\RXUWLVVXHEORRGXULQHRURWKHUIOXLGV7KURXJKWKHVH
VWXGLHVUHVHDUFKHUVKRSHWRILQGQHZZD\VWRSUHYHQWGHWHFWWUHDWRUFXUHKHDOWKSUREOHPV

6RPHRIWKHVHVWXGLHVPD\EHDERXWJHQHV*HQHVFDUU\LQIRUPDWLRQDERXWIHDWXUHVWKDWDUHIRXQG
LQ\RXDQGLQSHRSOHZKRDUHUHODWHGWR\RX5HVHDUFKHUVDUHLQWHUHVWHGLQWKHZD\WKDWJHQHV
DIIHFWKRZ\RXUERG\UHVSRQGVWRWUHDWPHQW

,I\RXFKRRVHWRWDNHSDUWLQWKHPDLQVWXG\DVDPSOHRIWLVVXHIURP\RXUSUHYLRXVELRSV\DQG
IRXUEORRGVDPSOHVRQHZKHQ\RXVWDUWDIWHUKRXUVZHHNVDQGZHHNVRIWUHDWPHQWZLOO
EHFROOHFWHG7KHUHVHDUFKHUVDVN\RXUSHUPLVVLRQWRVWRUHDQGXVH\RXUOHIWRYHUVDPSOHVIURPWKH
SODQQHGUHVHDUFKDQGKHDOWKLQIRUPDWLRQIRUPHGLFDOUHVHDUFK7KHUHVHDUFKWKDWPD\EHGRQHLV
XQNQRZQDWWKLVWLPH6WRULQJVDPSOHVIRUIXWXUHVWXGLHVLVFDOOHG³ELREDQNLQJ´7KH%LREDQNLV
EHLQJUXQE\6:2*DQGVXSSRUWHGE\WKH1DWLRQDO&DQFHU,QVWLWXWH
:+$7,6,192/9('"
,I\RXDJUHHWRDOORZ\RXUVDPSOHVWREHVWRUHGDQGXVHGLQIXWXUHUHVHDUFKKHUHLVZKDWZLOO
KDSSHQQH[W
 <RXUEORRGDQGWLVVXHZLOOEHFROOHFWHGDVGHVFULEHGDERYHDQGZLOOEHVHQWWRWKH
%LREDQN
 <RXUVDPSOHDQGVRPHUHODWHGLQIRUPDWLRQPD\EHVWRUHGLQWKH%LREDQNDORQJZLWK
VDPSOHVDQGLQIRUPDWLRQIURPRWKHUSHRSOHZKRWDNHSDUW7KHVDPSOHVZLOOEHNHSW
XQWLOWKH\DUHXVHGXS
 4XDOLILHGUHVHDUFKHUVFDQVXEPLWDUHTXHVWWRXVHWKHPDWHULDOVVWRUHGLQWKH%LREDQNV
$VFLHQFHFRPPLWWHHDWWKHFOLQLFDOWULDOVRUJDQL]DWLRQDQGRUWKH1DWLRQDO&DQFHU
,QVWLWXWHZLOOUHYLHZHDFKUHTXHVW7KHUHZLOODOVREHDQHWKLFVUHYLHZWRHQVXUHWKDW
WKHUHTXHVWLVQHFHVVDU\DQGSURSHU5HVHDUFKHUVZLOOQRWEHJLYHQ\RXUQDPHRUDQ\
RWKHULQIRUPDWLRQWKDWFRXOGGLUHFWO\LGHQWLI\\RX
 1HLWKHU\RXQRU\RXUVWXG\GRFWRUZLOOEHQRWLILHGZKHQUHVHDUFKZLOOEHFRQGXFWHGRU
JLYHQUHSRUWVRURWKHULQIRUPDWLRQDERXWDQ\UHVHDUFKWKDWLVGRQHXVLQJ\RXUVDPSOHV
 6RPHRI\RXUJHQHWLFDQGKHDOWKLQIRUPDWLRQPD\EHSODFHGLQFHQWUDOGDWDEDVHVWKDW
PD\EHSXEOLFDORQJZLWKLQIRUPDWLRQIURPPDQ\RWKHUSHRSOH,QIRUPDWLRQWKDW
FRXOGGLUHFWO\LGHQWLI\\RXZLOOQRWEHLQFOXGHG

CLOSED EFFECTIVE 07/01/2017
UREOHPV0XF
EOHPV0XF
IOXLGV7KURXJ
IOXLGV7KURX
UHKHDOWKSURE
HKHDOWKSURE
QDERXWIHDWXU
DERXWIHDW
HUHVWHGLQWKH
HVWHGLQWK
IWLVVXHIURP
WLVVXHIURP
UVZHHNVD
UVZHHNVD
WRVWRUHDQGX
WRVWRUHDQ
HGLFDOUHVHDUF
GLFDOUHVHD
XWXUHVWXGLHVL
XWXUHVWXGLHVL
H1DWLRQDO&D
1DWLRQDO&D
DPSOHVWREHV
PSOHVWRE
DQGWLVVXHZ
DQGWLVVXHZ
VDPSOHDQGV
VDPSOHDQGV
PSOHVDQGLQI
PSOHVDQGLQ
XQWLOWKH\DUH
XQWLOWKH\DUH
 4XDOLILHG
4XDOLILHG
$VFLHQ
$VFLHQ
,QVWL
,QVWL
WK


6

3DJH

9HUVLRQ'DWH

:+$7$5(7+(3266,%/(5,6.6"
 7KHPRVWFRPPRQULVNVUHODWHGWRGUDZLQJEORRGIURP\RXUDUPDUHEULHISDLQDQG
SRVVLEO\DEUXLVH
 7KHUHLVDULVNWKDWVRPHRQHFRXOGJHWDFFHVVWRWKHSHUVRQDOLQIRUPDWLRQLQ\RXU
PHGLFDOUHFRUGVRURWKHULQIRUPDWLRQUHVHDUFKHUVKDYHVWRUHGDERXW\RX
 7KHUHLVDULVNWKDWVRPHRQHFRXOGWUDFHWKHLQIRUPDWLRQLQDFHQWUDOGDWDEDVHEDFNWR
\RX(YHQZLWKRXW\RXUQDPHRURWKHULGHQWLILHUV\RXUJHQHWLFLQIRUPDWLRQLVXQLTXH
WR\RX7KHUHVHDUFKHUVEHOLHYHWKHFKDQFHWKDWVRPHRQHZLOOLGHQWLI\\RXLVYHU\
VPDOOEXWWKHULVNPD\FKDQJHLQWKHIXWXUHDVSHRSOHFRPHXSZLWKQHZZD\VRI
WUDFLQJLQIRUPDWLRQ
 ,QVRPHFDVHVWKLVLQIRUPDWLRQFRXOGEHXVHGWRPDNHLWKDUGHUIRU\RXWRJHWRUNHHS
DMRERULQVXUDQFH7KHUHDUHODZVDJDLQVWWKHPLVXVHRIJHQHWLFLQIRUPDWLRQEXWWKH\
PD\QRWJLYHIXOOSURWHFWLRQ7KHUHFDQDOVREHDULVNLQNQRZLQJJHQHWLFLQIRUPDWLRQ
1HZKHDOWKLQIRUPDWLRQDERXWLQKHULWHGWUDLWVWKDWPLJKWDIIHFW\RXRU\RXUEORRG
UHODWLYHVFRXOGEHIRXQGGXULQJDVWXG\7KHUHVHDUFKHUVEHOLHYHWKHFKDQFHWKHVH
WKLQJVZLOOKDSSHQLVYHU\VPDOOEXWFDQQRWSURPLVHWKDWWKH\ZLOOQRWRFFXU

+2::,//,1)250$7,21$%2870(%(.(3735,9$7("
<RXUSULYDF\LVYHU\LPSRUWDQWWRWKHUHVHDUFKHUVDQGWKH\ZLOOPDNHHYHU\HIIRUWWRSURWHFWLW
+HUHDUHMXVWDIHZRIWKHVWHSVWKH\ZLOOWDNH
 :KHQ\RXUVDPSOHVDUHVHQWWRWKHUHVHDUFKHUVQRLQIRUPDWLRQLGHQWLI\LQJ\RXVXFK
DV\RXUQDPHZLOOEHVHQW6DPSOHVZLOOEHLGHQWLILHGE\DXQLTXHFRGHRQO\
 7KHOLVWWKDWOLQNVWKHXQLTXHFRGHWR\RXUQDPHZLOOEHNHSWVHSDUDWHIURP\RXU
VDPSOHDQGKHDOWKLQIRUPDWLRQ$Q\%LREDQNDQG6:2*VWDIIZLWKDFFHVVWRWKHOLVW
PXVWVLJQDQDJUHHPHQWWRNHHS\RXULGHQWLW\FRQILGHQWLDO
 5HVHDUFKHUVWRZKRP6:2*VHQGV\RXUVDPSOHDQGLQIRUPDWLRQZLOOQRWNQRZZKR
\RXDUH7KH\PXVWDOVRVLJQDQDJUHHPHQWWKDWWKH\ZLOOQRWWU\WRILQGRXWZKR\RX
DUH
 ,QIRUPDWLRQWKDWLGHQWLILHV\RXZLOOQRWEHJLYHQWRDQ\RQHXQOHVVUHTXLUHGE\ODZ
 ,IUHVHDUFKUHVXOWVDUHSXEOLVKHG\RXUQDPHDQGRWKHUSHUVRQDOLQIRUPDWLRQZLOOQRW
EHXVHG
:+$7$5(7+(3266,%/(%(1(),76"
<RXZLOOQRWEHQHILWIURPWDNLQJSDUW7KHUHVHDUFKHUVXVLQJWKHVDPSOHVIURP\RXDQGRWKHUV
PLJKWPDNHGLVFRYHULHVWKDWFRXOGKHOSSHRSOHLQWKHIXWXUH
$5(7+(5($1<&2676253$<0(176"
7KHUHDUHQRFRVWVWR\RXRU\RXULQVXUDQFH<RXZLOOQRWEHSDLGIRUWDNLQJSDUW,IDQ\RIWKH
UHVHDUFKOHDGVWRQHZWHVWVGUXJVRURWKHUFRPPHUFLDOSURGXFWV\RXZLOOQRWVKDUHLQDQ\
SURILWV
CLOSED EFFECTIVE 07/01/2017
EDFNWR
EDFNW
QLVXQLTXH
QLVXQLTXH
RXLVYHU\
RXLVYHU\
QHZ
H
ZD\VRI
ZD\VRI
UIRU\RXWRJ
UIRU\RXWRJ
QHWLFLQIRUPDW
HWLFLQIRUP
NQRZLQJJHQH
QRZLQJJHQH
JKWDIIHFW\RX
KWDIIHFW\RX
FKHUVEHOLHYH
UVEHOLHYH
PLVH
PLV WKDW WKH\
WKH\
(%(.(3
%(.(3
VDQGWKH\ZL
VDQGWKH\Z
WKHUHVHDU
KHUHVHDUFKH
FK
6DPSOHVZLOO
6DPSOHVZL
TXHFRGHWR\
TXHFRGHWR\
RUPDWLRQ$Q\
UPDWLRQ$Q\
PHQWWRNHHS\
PHQWWRNHHS
KRP
KRP 6:2*
6:2
PXVWDOVRVLJ
PXVWDOV
WLRQWKDWLGHQ
WLRQWKDWLGHQ
HDUFKUHVXOWV
HDUFKUHV
XVHG
XVHG
7$5(7+
7$5(7+
RXZLOOQRWEH
XZLOOQRWEH
PLJKWPDNH
JKWPDN
$5(
$5(
7


6

3DJH

9HUVLRQ'DWH

:+$7,),&+$1*(0<0,1'"
,I\RXGHFLGH\RXQRORQJHUZDQW\RXUVDPSOHVWREHXVHG\RXFDQFDOOWKHVWXG\GRFWRU
BBBBBBBBBBBBBBBBBLQVHUWQDPHRIVWXG\GRFWRUIRUPDLQWULDO DW
BBBBBBBBBBBBBBBBBBBBBBBBLQVHUWWHOHSKRQHQXPEHURIVWXG\GRFWRUIRUPDLQWULDOZKRZLOO
OHWWKHUHVHDUFKHUVNQRZ7KHQDQ\VDPSOHWKDWUHPDLQVLQWKHEDQNZLOOQRORQJHUEHXVHG
6DPSOHVRUUHODWHGLQIRUPDWLRQWKDWKDYHDOUHDG\EHHQJLYHQWRRUXVHGE\UHVHDUFKHUVZLOOQRWEH
UHWXUQHG
,I\RXGHFLGHWRZLWKGUDZ\RXUVSHFLPHQVIURPD6:2*6SHFLPHQ5HSRVLWRU\LQWKH
IXWXUHDZULWWHQZLWKGUDZDORIFRQVHQWVKRXOGEHVXEPLWWHGWKURXJK\RXUVWXG\GRFWRUWR
WKH6:2*2SHUDWLRQV2IILFH3OHDVHGHVLJQDWHLQWKHZULWWHQZLWKGUDZDOZKHWKHU\RX
ZRXOGSUHIHUWRKDYHWKHVSHFLPHQVGHVWUR\HGRUUHWXUQHGWRWKHVWXG\GRFWRU

:+$7,),+$9(025(48(67,216"
,I\RXKDYHTXHVWLRQVDERXWWKHXVHRI\RXUVDPSOHVIRUUHVHDUFKFRQWDFWWKHVWXG\GRFWRU
BBBBBBBBBBBBBBBBLQVHUWQDPHRIVWXG\GRFWRUIRUPDLQWULDODWBBBBBBBBBBBBBBBBBBBBB
LQVHUWWHOHSKRQHQXPEHURIVWXG\GRFWRUIRUPDLQWULDO

3OHDVHFLUFOH\RXUDQVZHUWRVKRZZKHWKHURUQRW\RXZRXOGOLNHWRWDNHSDUWLQHDFKRSWLRQ
LQFOXGHRQO\DSSOLFDEOHTXHVWLRQV
6$03/(6)25)8785(5(6($5&+678',(6

0\VDPSOHVDQGUHODWHGLQIRUPDWLRQPD\EHNHSWLQD%LREDQNIRUXVHLQIXWXUH
KHDOWKUHVHDUFK
<(6 
12
VHFWLRQGHOHWHG
7KLVLVWKHHQGRIWKHVHFWLRQDERXWRSWLRQDOVWXGLHV
0\6LJQDWXUH$JUHHLQJWR7DNH3DUWLQWKH0DLQ6WXG\
,KDYHUHDGWKLVFRQVHQWIRUPRUKDGLWUHDGWRPH,KDYHGLVFXVVHGLWZLWKWKHVWXG\GRFWRUDQG
P\TXHVWLRQVKDYHEHHQDQVZHUHG,ZLOOEHJLYHQDVLJQHGFRS\RIWKLVIRUP,DJUHHWRWDNHSDUW
LQWKHPDLQVWXG\DQGDQ\DGGLWLRQDOVWXGLHVZKHUH,FLUFOHGµ\HV¶
3DUWLFLSDQW¶VVLJQDWXUHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
'DWHRIVLJQDWXUHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
CLOSED EFFECTIVE 07/01/2017
QRWEH
WEH
U\LQWKH
\LQWKH
VWXG\GRFWRU
VWXG\GRFWRU
ZDOZKHWKHU\
DOZKHWKHU
\GRFWRU
\GRFWRU
VHDUFKFRQWDF
HDUFKFRQWDF
DLQWULDO
LQWULDODWDW
DO
DO
RW\RXZRXOG
RW\RXZRX
6($5&+6
6($5&+
GLQIRUPDWLR
GLQIRUPDWLR
12
12
QGHOHWHG
QGHOH


QGRIWKHVHFW
QGRIWKHVHF
6LJQDWXU
JQDWXUH $
,KDYHUHDGWK
DYHUHDG
P\TXHVWLR
TXHVWLR
LQWKHP
LQWKHP
3D
3


6

3DJH

9HUVLRQ'DWH

6SHFLPHQ&RQVHQW6XSSOHPHQWDO6KHHWV

+RZDUH6SHFLPHQV8VHGIRU5HVHDUFK"

:KHUHGRVSHFLPHQVFRPHIURP"

$VSHFLPHQPD\EHIURPDEORRGVDPSOHRUIURPERQHPDUURZVNLQWRHQDLOVRURWKHUERG\PDWHULDOV
3HRSOH ZKR DUH WUDLQHG WR KDQGOH VSHFLPHQV DQG SURWHFW GRQRUV
 ULJKWV PDNH VXUH WKDW WKH KLJKHVW
VWDQGDUGV RI TXDOLW\ FRQWURO DUH IROORZHG E\ 6:2*  <RXU GRFWRU GRHV QRW ZRUN IRU 6:2* EXW KDV
DJUHHGWRKHOSFROOHFWVSHFLPHQVIURPPDQ\SDWLHQWV0DQ\GRFWRUVDFURVVWKHFRXQWU\DUHKHOSLQJLQWKH
VDPHZD\

:K\GRSHRSOHGRUHVHDUFKZLWKVSHFLPHQV"

5HVHDUFKZLWKVSHFLPHQVFDQKHOSWRILQGRXWPRUHDERXWZKDWFDXVHVFDQFHUKRZWRSUHYHQWLWKRZWR
WUHDWLWDQGKRZWRFXUHLW5HVHDUFKXVLQJVSHFLPHQVFDQDOVRDQVZHURWKHUKHDOWKTXHVWLRQV6RPHRI
WKHVHLQFOXGHILQGLQJWKHFDXVHVRIGLDEHWHVDQGKHDUWGLVHDVHRUILQGLQJJHQHWLFOLQNVWR$O]KHLPHU
V

:KDWW\SHRIUHVHDUFKZLOOEHGRQHZLWKP\VSHFLPHQ"

0DQ\ GLIIHUHQW NLQGV RI VWXGLHV XVH VSHFLPHQV  6RPH UHVHDUFKHUV PD\ GHYHORS QHZ WHVWV WR ILQG
GLVHDVHV  2WKHUV PD\ GHYHORS QHZ ZD\V WR WUHDW RU HYHQ FXUH GLVHDVHV  ,Q WKH IXWXUH VRPH RI WKH
UHVHDUFKPD\KHOSWRGHYHORSQHZSURGXFWVVXFKDVWHVWVDQGGUXJV6RPHUHVHDUFKORRNVDWGLVHDVHV
WKDWDUHSDVVHGRQLQIDPLOLHVFDOOHGJHQHWLFUHVHDUFK5HVHDUFKGRQHZLWK\RXUVSHFLPHQPD\ORRNIRU
JHQHWLFFDXVHVDQGVLJQVRIGLVHDVH

+RZGRUHVHDUFKHUVJHWWKHVSHFLPHQ"

5HVHDUFKHUV IURP XQLYHUVLWLHV KRVSLWDOV DQG RWKHU KHDOWK RUJDQL]DWLRQV FRQGXFW UHVHDUFK XVLQJ
VSHFLPHQV7KH\FRQWDFW6:2*DQGUHTXHVWVDPSOHVIRUWKHLUVWXGLHV6:2*UHYLHZVWKHZD\WKDW
WKHVHVWXGLHVZLOOEHGRQHDQGGHFLGHVLIDQ\RIWKHVDPSOHVFDQEHXVHG6:2*JHWVWKHVSHFLPHQDQG
LQIRUPDWLRQDERXW\RXIURP\RXUKRVSLWDODQGVHQGVWKHVSHFLPHQVDPSOHVDQGVRPHLQIRUPDWLRQDERXW
\RXWRWKHUHVHDUFKHU6:2*ZLOOQRWVHQG\RXUQDPHDGGUHVVSKRQHQXPEHUVRFLDOVHFXULW\QXPEHU
RUDQ\RWKHULGHQWLI\LQJLQIRUPDWLRQWRWKHUHVHDUFKHU

:LOO,ILQGRXWWKHUHVXOWVRIWKHUHVHDUFKXVLQJP\VSHFLPHQ"

<RXZLOOQRWUHFHLYHWKHUHVXOWVRIUHVHDUFKGRQHZLWK\RXUVSHFLPHQ7KLVLVEHFDXVHUHVHDUFKFDQWDNH
DORQJWLPHDQGPXVWXVHVSHFLPHQVDPSOHVIURPPDQ\SHRSOHEHIRUHUHVXOWVDUHNQRZQ5HVXOWVIURP
UHVHDUFKXVLQJ\RXUVSHFLPHQPD\QRWEHUHDG\IRUPDQ\\HDUVDQGZLOOQRWDIIHFW\RXUFDUHULJKWQRZ
EXWWKH\PD\EHKHOSIXOWRSHRSOHOLNH\RXLQWKHIXWXUH

:K\GR\RXQHHGLQIRUPDWLRQIURPP\KHDOWKUHFRUGV"

,QRUGHUWRGRUHVHDUFKZLWK\RXUVSHFLPHQUHVHDUFKHUVPD\QHHGWRNQRZVRPHWKLQJVDERXW\RX)RU
H[DPSOH$UH\RXPDOHRUIHPDOH":KDWLV\RXUUDFHRUHWKQLFJURXS"+RZROGDUH\RX"+DYH\RXHYHU
VPRNHG"7KLVKHOSVUHVHDUFKHUVDQVZHUTXHVWLRQVDERXWGLVHDVHV7KHLQIRUPDWLRQWKDWZLOOEHJLYHQWR
WKH UHVHDUFKHU PD\ LQFOXGH \RXU DJH VH[ UDFH GLDJQRVLV WUHDWPHQWV DQG IDPLO\ KLVWRU\  7KLV
LQIRUPDWLRQLVFROOHFWHGE\\RXUKRVSLWDOIURP\RXUKHDOWKUHFRUGDQGVHQWWR6:2*,IPRUHLQIRUPDWLRQ
LVQHHGHG6:2*ZLOOVHQGLWWRWKHUHVHDUFKHU

:LOOP\QDPHEHDWWDFKHGWRWKHUHFRUGVWKDWDUHJLYHQWRWKHUHVHDUFKHU"

1R<RXUQDPHDGGUHVVSKRQHQXPEHUDQGDQ\WKLQJHOVHWKDWFRXOGLGHQWLI\\RXZLOOEHUHPRYHGEHIRUH
WKH\JRWRWKHUHVHDUFKHU7KHUHVHDUFKHUZLOOQRWNQRZZKR\RXDUH


CLOSED EFFECTIVE 07/01/2017
HULDOV
LDOV
KLJKHVW
KLJKHVW
* EXW KDV
 EXW K
KHOSLQJLQWKH
KHOSLQJLQWK
KRZWRSUHYH
KRZWRSUHYH
UKHDOWKTXHVW
UKHDOWKTXH
HQHWLFOLQNVWR
HQHWLFOLQNVWR
DUFKHUV PD\ G
DUFKHUV PD\
FXUH GLVHDVHV
XUH GLV
DQGGUXJV6R
QGGUXJV6
5HVHDUFKGRQ
5HVHDUFKGRQ
DQG RWKHU K
QG RWKHU K
TXHVWVDPSOHV
TXHVWVDPSO
LIDQ\RIWKHV
IDQ\RIWKHV
SLWDODQGVHQG
SLWDODQGVHQ
QRWVHQG\RX
QRWVHQG\RX
RQWRWKHUHVHD
RQWRWKH
RIWKHUHVHDUF
RIWKHUHV
HUHVXOWVRIUH
VXOWVRIUH
VWXVHVSHFLP
VWXVHVSHFLP
RXUVSHFLPHQ
XUVSHFLP
HKHOSIXOWRSH
HKHOSIXOWRS
RX
RX QHHGLQIR
QHHGLQIR
GHUWRGRUHVH
GHUWRGRUHV
DPSOH$UH\R
DPSOH$UH\R
VPRNHG"
RN
7K
7
WKH UHVHDUF
UHVHDU
LQIRUPDWL
LQIRUPD
LVQHHG
VQHH
:


6

3DJH

9HUVLRQ'DWH

+RZFRXOGWKHUHFRUGVEHXVHGLQZD\VWKDWPLJKWEHKDUPIXOWRPH"

6RPHWLPHVKHDOWKUHFRUGVKDYHEHHQXVHGDJDLQVWSDWLHQWVDQGWKHLUIDPLOLHV)RUH[DPSOHLQVXUDQFH
FRPSDQLHVPD\GHQ\DSDWLHQWLQVXUDQFHRUHPSOR\HUVPD\QRWKLUHVRPHRQHZLWKDFHUWDLQLOOQHVVVXFK
DV $,'6 RU FDQFHU  7KH UHVXOWV RI JHQHWLF UHVHDUFK PD\ QRW DSSO\ RQO\ WR \RX EXW WR \RXU IDPLO\
PHPEHUVWRR)RUGLVHDVHFDXVHGE\JHQHFKDQJHVWKHLQIRUPDWLRQLQRQHSHUVRQ
VKHDOWKUHFRUGFRXOG
EHXVHGDJDLQVWIDPLO\PHPEHUV

+RZDP,SURWHFWHG"

6:2*LVLQFKDUJHRIPDNLQJVXUHWKDWLQIRUPDWLRQDERXW\RXLVNHSWSULYDWH6:2*ZLOOWDNHFDUHIXO
VWHSV WR SUHYHQW PLVXVH RI UHFRUGV  <RXU QDPH DGGUHVV SKRQH QXPEHU DQG DQ\ RWKHU LGHQWLI\LQJ
LQIRUPDWLRQZLOOEHWDNHQRIIDQ\WKLQJDVVRFLDWHGZLWK\RXUVSHFLPHQEHIRUHLWLVJLYHQWRWKHUHVHDUFKHU
7KLVZRXOGPDNHLWYHU\GLIILFXOWIRUDQ\UHVHDUFKUHVXOWVWREHOLQNHGWR\RXRU\RXUIDPLO\$OVRSHRSOH
RXWVLGH WKH UHVHDUFK SURFHVV ZLOO QRW KDYH DFFHVV WR UHVXOWV DERXW DQ\ RQH SHUVRQ ZKLFK ZLOO KHOS WR
SURWHFW\RXUSULYDF\

:KDWLI,KDYHPRUHTXHVWLRQV"

,I\RXKDYHDQ\TXHVWLRQVSOHDVHWDONWR\RXUGRFWRURUQXUVHRUFDOORXUUHVHDUFKUHYLHZERDUGDW,QVHUW
,5%
V3KRQH1XPEHU
CLOSED EFFECTIVE 07/01/2017
\
XOG
G
ZLOOWDNHFDUHI
ZLOOWDNHFDUHI
\ RWKHU LGHQWLI
WKHU LGHQW
HQWRWKHUHVHD
WRWKHUHVH
XUIDPLO\$OV
XUIDPLO\$O
SHUVRQ ZKLFK
HUVRQ ZKLFK
DOORXUUHVHDUFK
XUUHVHDUF