Conditions: Bacterial Pneumonia Community-Acquired Infections
Allocation: RANDOMIZED | Intervention model: PARALLEL
Enrollment: 774
Healthy volunteers: no

Brief summary:
The purpose of this study is to evaluate the safety and efficacy of omadacycline as compared to moxifloxacin in the treatment of adults with community-acquired bacterial pneumonia.

Detailed description:

Arms:
arm 1: Omadacycline IV; Omadacycline tablets arm 2: Moxifloxacin IV; Moxifloxacin tablets

Interventions: intervention 1: Omadacycline intervention 2: Moxifloxacin
Intervention descriptions: intervention 1: Injection for IV; Oral tablets intervention 2: IV solution; Oral tablets

Protocol document:
Prot_SAP_000.pdf: 



2PDGDF\FOLQHIRU&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD

7KLVVXSSOHPHQWFRQWDLQVWKHIROORZLQJLWHPV
2ULJLQDOSURWRFRO9
)LQDOSURWRFRO9
6XPPDU\RIFKDQJHVSURWRFRO9YHUVXV9
2ULJLQDO)LQDO6WDWLVWLFDO$QDO\VLV3ODQ9




2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
)(%
,1'

35272&2/37.&$%3
6WXG\7LWOH
$3KDVH5DQGRPL]HG'RXEOH%OLQG0XOWL&HQWHU6WXG\WR
&RPSDUHWKH6DIHW\DQG(IILFDF\RI2PDGDF\FOLQH,932WR
0R[LIOR[DFLQ,932IRU7UHDWLQJ$GXOW6XEMHFWVZLWK
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD&$%3
,1'1XPEHUV


(XGUD&71XPEHU

3URWRFRO1XPEHU
37.&$%3


,QGLFDWLRQ
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
3KDVH

,QYHVWLJDWLRQDO'UXJ
2PDGDF\FOLQH37.
'RVH)RUPV
,QWUDYHQRXVDQGRUDO
6SRQVRU
3DUDWHN3KDUPD//&
$ZKROO\RZQHGVXEVLGLDU\RI3DUDWHN3KDUPDFHXWLFDOV,QF
.QHHODQG6WUHHW
%RVWRQ0$86$
7HO



3URWRFRO9HUVLRQ
9HUVLRQ
'DWH
)(%


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

7$%/(2)&217(176
7$%/(2)&217(176 
/,672),17(;77$%/(6 
/,672)$33(1',&(6 
 
',6&/2685(67$7(0(17 
 
&217$&76 
 
(PHUJHQF\&RQWDFWV 
 
$GGLWLRQDO&RQWDFWV 
 
63216256,*1$785( 
 
,19(67,*$725$*5((0(17 
 
/,672)$%%5(9,$7,216 
 
'(),1,7,216 
 
35272&2/6<1236,6 
 
678'<)/2:&+$57 
 
,1752'8&7,21 
 
%DFNJURXQG 
 678'<2%-(&7,9(6 
 
3ULPDU\2EMHFWLYH 
 
6HFRQGDU\2EMHFWLYHV 
 678'<'(6,*1 
 
'HVFULSWLRQ 
 
5DWLRQDOHRI6WXG\'HVLJQ 
 
5DWLRQDOHIRU&KRLFHRI&RPSDUDWRU 
 
$SSUR[LPDWH'XUDWLRQRI6XEMHFW3DUWLFLSDWLRQ 
 
$SSUR[LPDWH'XUDWLRQRI6WXG\ 
 
$SSUR[LPDWH1XPEHURI6XEMHFWV 
 6(/(&7,212)68%-(&76 
 
,QFOXVLRQ&ULWHULD 
 
([FOXVLRQ&ULWHULD 
 
6FUHHQ)DLOXUHV 
 35,25$1'&21&20,7$1775($70(17 
 
3HUPLWWHG7UHDWPHQW 
 
3URKLELWHG7UHDWPHQW 
 
3URKLELWHG&RQFRPLWDQW0HGLFDWLRQVWKDWPD\,QWHUDFWZLWK0R[LIOR[DFLQ 
 352&('85(6 

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

 
9LVLW6FKHGXOHDQG$VVHVVPHQWV 
 
6FUHHQLQJ3KDVH 
 
6XEMHFW'HPRJUDSKLFV2WKHU%DVHOLQH&KDUDFWHULVWLFV 
 
0HGLFDO+LVWRU\5HODWLQJWRWKH,QIHFWLRQ8QGHU6WXG\ 

 
3K\VLFDO([DPLQDWLRQ 
 
$VVHVVPHQWRI&$%36\PSWRP6HYHULW\ 
 
5DGLRORJLF(YDOXDWLRQRI3QHXPRQLD 
 
32575LVN&ODVV 
 
8ULQDO\VLV 
 
'RXEOHEOLQG7UHDWPHQW3KDVH 
 
$VVHVVPHQWV:KLOHRQ7HVW$UWLFOH 
 
,QWUDYHQRXV7UHDWPHQW3KDVH7HVW$UWLFOH 

 
6ZLWFKWR2UDO7UHDWPHQW 

 
2UDO7UHDWPHQW3KDVH7HVW$UWLFOH 

 
3HUPLWWHG'RVH$GMXVWPHQWVDQG,QWHUUXSWLRQVRI7HVW$UWLFOH 
 
)ROORZXS3KDVH 
 
7RWDO9ROXPHRI%ORRG&ROOHFWHG 
 7(67$57,&/($1'$'0,1,675$7,21 
 
7HVW$UWLFOH$GPLQLVWUDWLRQ 
 
,GHQWLW\RIWKH,QYHVWLJDWLRQDO3URGXFW 
 
,QYHVWLJDWLRQDODQG&RPSDUDWRU7HVW$UWLFOH 
 
,QYHVWLJDWLRQDO7HVW$UWLFOH2PDGDF\FOLQH 
 
&RPSDUDWRU7HVW$UWLFOH0R[LIOR[DFLQ 
 
6XEMHFW&RPSOLDQFHZKLOHRQ2UDO7HVW$UWLFOH 
 6$)(7< 
 
3K\VLFDO([DPLQDWLRQV 
 
9LWDO6LJQV 
 
/DERUDWRU\(YDOXDWLRQV 
 
+HPDWRORJ\ 

 
&OLQLFDO&KHPLVWU\ 

 
2WKHUODERUDWRU\WHVWV 

 
6DIHW\6WXGLHVWREH3HUIRUPHG/RFDOO\ 
 
(OHFWURFDUGLRJUDP 

 
3UHJQDQF\DQG$VVHVVPHQWVRI)HUWLOLW\ 

 
%ORRG&XOWXUHV 

 
$GGLWLRQDO/RFDO/DERUDWRU\7HVWV 

 
$SSURSULDWHQHVVRI6DIHW\0HDVXUHPHQWV 

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

 ()),&$&< 
 
3ULPDU\DQG6HFRQGDU\(IILFDF\9DULDEOHV 
 
.H\$VVHVVPHQWV 
 
$VVHVVPHQWRI&$%36\PSWRP6HYHULW\ 
 
0LFURELRORJLFDO$VVHVVPHQWV 
 
5HVSLUDWRU\&XOWXUHDQG*UDP6WDLQ 

 
8ULQHIRU/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDH

$QWLJHQ6FUHHQLQJ 
 
6HURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHDQG

&KODP\GRSKLODSQHXPRQLDH7LWHUV 
 
$VVHVVPHQWRI&OLQLFDO2XWFRPH 
 
(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DWWKH(DUO\&OLQLFDO5HVSRQVH

$VVHVVPHQW
 
 
&OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW(27 

 
&OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW37( 

 27+(5$66(660(176 
 
5HVRXUFH8WLOL]DWLRQ 
 3+$50$&2.,1(7,&3/$60$6$03/(6)2520$'$&<&/,1(
&21&(175$7,21 
 
6HOHFWLRQRI6LWHVIRU3.6WXGLHV 
 
&ROOHFWLRQRI3.6DPSOHV 
 
6WRULQJDQG6KLSSLQJRI3.6DPSOHV 
 
$QDO\VLVRI3.6DPSOHV 
 27+(5%,20$5.(56 
 6$)(7<021,725,1* 
 
$GYHUVH(YHQWV 
 
6HULRXV$GYHUVH(YHQW5HSRUWLQJ 
 
2YHUGRVH 
 
0HGLFDWLRQ(UURUV 
 
5HFRUGLQJDQG5HSRUWLQJ 
 
3UHJQDQFLHV 
 
'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH 
 '$7$$1$/<6,6 
 
$QDO\VLV3RSXODWLRQV 
 
6XEMHFW'HPRJUDSKLFVDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV 
 
7UHDWPHQWV7HVW$UWLFOH5HVFXH0HGLFDWLRQ2WKHU&RQFRPLWDQW7KHUDSLHV
&RPSOLDQFH 

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

 
3ULPDU\(IILFDF\$QDO\VLV 
 
(DUO\&OLQLFDO5HVSRQVH(IILFDF\9DULDEOH 
 
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37((IILFDF\
9DULDEOH 
 
6WDWLVWLFDO0RGHO+\SRWKHVLVDQG0HWKRGRI$QDO\VLV 
 
$GGLWLRQDO$QDO\VHVRIWKH3ULPDU\(IILFDF\2XWFRPHV 
 
$QDO\VLVRI6HFRQGDU\9DULDEOHV 
 
$QDO\VLVRI$GGLWLRQDO(IILFDF\9DULDEOHV 
 
6DIHW\2XWFRPH0HDVXUHV 
 
$GYHUVH(YHQWV 

 
9LWDO6LJQV 

 
(OHFWURFDUGLRJUDPV 

 
/DERUDWRU\7HVWV 

 
5HVRXUFH8WLOL]DWLRQ 
 
3KDUPDFRNLQHWLFV 
 
3RSXODWLRQ3.0RGHOLQJ 

 
3KDUPDFRJHQHWLFV3KDUPDFRJHQRPLFV 
 
%LRPDUNHUV 
 
3.3' 
 
6DPSOH6L]H&DOFXODWLRQ 
 
,QWHULP$QDO\VHV 
 
+DQGOLQJRI0LVVLQJ9DOXHV&HQVRULQJ'LVFRQWLQXDWLRQV 
 68%-(&7,'(17,),&$7,21 
 7(67$57,&/($&&2817$%,/,7<5(&21&,/,$7,21$1'5(7851 
 
6XSSO\6WRUDJHDQG7UDFNLQJRI6WXG\7UHDWPHQW 
 5$1'20,=$7,21$1'%/,1',1* 
 
7UHDWPHQW$VVLJQPHQW 
 
'LVSHQVLQJWKH7HVW$UWLFOH 
 
7UHDWPHQW%OLQGLQJ 
 
(PHUJHQF\8QEOLQGLQJRI7UHDWPHQW$VVLJQPHQW 
 68%-(&7',6&217,18$7,2125:,7+'5$:$/ 
 678'<6863(16,217(50,1$7,21$1'&203/(7,21 
 
6WXG\&RPSOHWLRQDQG3RVW6WXG\7HVW$UWLFOH 
 
6WXG\6XVSHQVLRQRU7HUPLQDWLRQ 
 (7+,&$/&216,'(5$7,216 
 
5HJXODWRU\DQG(WKLFDO&RPSOLDQFH 

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

 
,QIRUPHG&RQVHQW3URFHGXUHV 
 
5HVSRQVLELOLWLHVRIWKH,QYHVWLJDWRUDQG,5%,(&5(% 
 35272&2/$'+(5(1&( 
 
3URWRFRO$PHQGPHQWV 
 48$/,7<&21752/$1'$6685$1&( 
 ',5(&7$&&(66'$7$+$1'/,1*$1'5(&25'.((3,1* 
 
,QYHVWLJDWRU 
 
6SRQVRU 
 68%-(&7,1-85< 
 35(678'<'2&80(17$7,21 
 5(&25'65(7(17,21 
 38%/,&$7,2132/,&< 
 5()(5(1&(6$YDLODEOH8SRQ5HTXHVW 

/,672),17(;77$%/(6
7DEOH 
7UHDWPHQW5HJLPHQVIRU,97HVW$UWLFOH 
7DEOH 
7UHDWPHQW5HJLPHQVIRU2UDO7HVW$UWLFOH 
7DEOH 
,QWUDYHQRXV)RUPXODWLRQ 
7DEOH 
2UDO)RUPXODWLRQ 
7DEOH 
+HPDWRORJ\3DQHO 
7DEOH 
&OLQLFDO&KHPLVWU\3DQHO 
7DEOH 
$GGLWLRQDO/DERUDWRU\7HVWV 
7DEOH 
6DPSOH6L]HDQG3RZHU&DOFXODWLRQV 
7DEOH 
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37('HWHUPLQDWLRQ*LYHQ
0LVVLQJ'DWD 

/,672)$33(1',&(6
$SSHQGL[ 
$OORZHGDQG'LVDOORZHG3ULRU$QWLELRWLFV 
$SSHQGL[ 
32575LVN&ODVV&DOFXODWLRQ 
$SSHQGL[ 
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP
6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQW 
$SSHQGL[ 
(TXDWLRQVDQG&RQYHUVLRQV 


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


',6&/2685(67$7(0(17
5HVWULFWHG'LVWULEXWLRQRI'RFXPHQWV
7KLVGRFXPHQWFRQWDLQVLQIRUPDWLRQWKDWLVFRQILGHQWLDODQGSURSULHWDU\WRWKHVSRQVRU7KLV
LQIRUPDWLRQLVEHLQJSURYLGHGWR\RXVROHO\IRUWKHSXUSRVHRIHYDOXDWLQJDQGRUFRQGXFWLQJD
FOLQLFDOVWXG\IRUWKHVSRQVRU<RXPD\GLVFORVHWKHFRQWHQWVRIWKLVGRFXPHQWRQO\WRVWXG\
SHUVRQQHOXQGHU\RXUVXSHUYLVLRQLQVWLWXWLRQDOUHYLHZERDUGV,5%VLQGHSHQGHQWHWKLFV
FRPPLWWHHV,(&VUHVHDUFKHWKLFVERDUGV5(%VRUGXO\DXWKRUL]HGUHSUHVHQWDWLYHVRI
UHJXODWRU\DJHQFLHVIRUWKLVSXUSRVHXQGHUWKHFRQGLWLRQWKDWWKH\PDLQWDLQFRQILGHQWLDOLW\
7KHFRQWHQWVRIWKLVGRFXPHQWPD\QRWEHXVHGLQDQ\RWKHUFOLQLFDOVWXG\GLVFORVHGWRDQ\
RWKHUSHUVRQRUHQWLW\DQGRUSXEOLVKHGZLWKRXWWKHSULRUZULWWHQSHUPLVVLRQRIWKHVSRQVRU
7KHIRUHJRLQJVKDOOQRWDSSO\WRGLVFORVXUHUHTXLUHGE\DQ\UHJXODWLRQVKRZHYHU\RXZLOO
JLYHSURPSWQRWLFHWRWKHVSRQVRURIDQ\VXFKGLVFORVXUH$OORWKHUQRQSXEOLFLQIRUPDWLRQ
SURYLGHGE\WKHVSRQVRUDQGDQ\LQIRUPDWLRQWKDWPD\EHDGGHGWRWKLVGRFXPHQWDOVRLV
FRQILGHQWLDODQGSURSULHWDU\WRWKHVSRQVRUDQGPXVWEHNHSWLQFRQILGHQFHLQWKHVDPHPDQQHU
DVWKHFRQWHQWVRIWKLVGRFXPHQW

&217$&76

(PHUJHQF\&RQWDFWV
1DPH7LWOH3DXO(FNEXUJ0'*OREDO0HGLFDO0RQLWRU
3KRQHGXULQJEXVLQHVVKRXUV

3KRQHDIWHUEXVLQHVVKRXUV

(PDLOQRWIRUHPHUJHQFLHV

$GGUHVV











1DPH7LWOH3KLOLSSH9LWRX0'5HJLRQDO0HGLFDO0RQLWRU
3KRQHGXULQJEXVLQHVVKRXUV

3KRQHDIWHUEXVLQHVVKRXUV

(PDLOQRWIRUHPHUJHQFLHV

$GGUHVV


















&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


$GGLWLRQDO&RQWDFWV
6HULRXV$GYHUVH(YHQW6$(FRQWDFWLQIRUPDWLRQ
(0DLO

)D[



&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


63216256,*1$785(
,KDYHUHDGDQGDSSURYHWKLVSURWRFRO0\VLJQDWXUHLQFRQMXQFWLRQZLWKWKHVLJQDWXUHRIWKH
LQYHVWLJDWRUFRQILUPVWKHDJUHHPHQWRIERWKSDUWLHVWKDWWKHFOLQLFDOVWXG\ZLOOEHFRQGXFWHG
LQDFFRUGDQFHZLWKWKHSURWRFRODQGDOODSSOLFDEOHODZVDQGUHJXODWLRQVLQFOXGLQJEXWQRW
OLPLWHGWRWKH,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ*XLGHOLQHIRU*RRG&OLQLFDO
3UDFWLFH*&3WKH&RGHRI)HGHUDO5HJXODWLRQV&)5DQGWKHHWKLFDOSULQFLSOHVWKDWKDYH
WKHLURULJLQVLQWKH'HFODUDWLRQRI+HOVLQNL



(YDQ/RK0'
&KLHI0HGLFDO2IILFHU
3DUDWHN3KDUPD//&

'DWHRI6LJQDWXUH
''000<<<<

7LPH
KRXUFORFNWLPH
]RQH






19 February 2015
9 AM HST/2 pm EST


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


,19(67,*$725$*5((0(17
,KDYHUHDGWKHIRUHJRLQJSURWRFRO37.&$%3DQGDJUHHWRWKHIROORZLQJ
7KHSURWRFROFRQWDLQVDOOQHFHVVDU\GHWDLOVIRUFDUU\LQJRXWWKLVVWXG\
,ZLOOFRQGXFWWKHVWXG\DVGHWDLOHGLQWKHSURWRFRODQGZLOODELGHE\DOOLWVSURYLVLRQV
,ZLOOFRQGXFWWKHVWXG\LQFRPSOLDQFHZLWKWKHPRVWFXUUHQWYHUVLRQVRI,QWHUQDWLRQDO
&RQIHUHQFHRQ+DUPRQLVDWLRQRI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI3KDUPDFHXWLFDOV
IRU+XPDQ8VH,&+*XLGHOLQHVIRU*RRG&OLQLFDO3UDFWLFH*&3DOODSSOLFDEOH
JRYHUQPHQWUHJXODWLRQVDQGWKHUHTXLUHPHQWVRIWKH,5%WKDWDSSURYHGWKHVWXG\
,ZLOOWUDLQDQGVXSHUYLVHDOOLQGLYLGXDOVGHOHJDWHGWRDVVLVWPHLQFRQGXFWLQJWKLVVWXG\
LQFOXGLQJSURYLGLQJFRSLHVRIWKHSURWRFRODQGDOOSHUWLQHQWLQIRUPDWLRQDQGGLVFXVVLQJWKH
PDWHULDOZLWKWKHPWRHQVXUHWKH\DUHIXOO\LQIRUPHGUHJDUGLQJWKHLQYHVWLJDWLRQDOGUXJWKH
SURWRFRODQGWKHLUUHVSRQVLELOLWLHVDQGREOLJDWLRQV
,ZLOOXVHRQO\WKHLQIRUPHGFRQVHQWIRUP,&)DSSURYHGE\3$5$7(.RUWKHLUGHVLJQHH
DQGE\WKH,5%UHVSRQVLEOHIRUWKLVVWXG\
,ZLOOIXOILOODOOUHTXLUHPHQWVIRUVXEPLWWLQJSHUWLQHQWLQIRUPDWLRQWRWKH,5%DQGWR
3$5$7(.LQFOXGLQJUHSRUWDEOHVHULRXVDGYHUVHHYHQWV6$(V
,ZLOOSURYLGH3$5$7(.RUWKHLUGHVLJQHHZLWKDFFHVVWRDQ\VRXUFHGRFXPHQWVIURPZKLFK
FDVHUHSRUWIRUPLQIRUPDWLRQPD\KDYHEHHQJHQHUDWHG
,XQGHUVWDQGWKDWWKHLQIRUPDWLRQLQWKLVSURWRFRODQGWKHUHIHUHQFHG,QYHVWLJDWRU¶V%URFKXUH
,%LVFRQILGHQWLDODQGWKDWLWVGLVFORVXUHWRDQ\WKLUGSDUWLHVRWKHUWKDQWKRVHLQYROYHGLQ
DSSURYLQJRUFRQGXFWLQJWKHVWXG\LVSURKLELWHG,ZLOOWDNHWKHQHFHVVDU\SUHFDXWLRQVWR
SURWHFWWKLVLQIRUPDWLRQIURPORVVLQDGYHUWHQWGLVFORVXUHRUDFFHVVE\WKLUGSDUWLHV
,ZLOOFRPSOHWHWKHVWXG\ZLWKLQWKHWLPHGHVLJQDWHG
0\VLJQDWXUHLQFRQMXQFWLRQZLWKWKHVLJQDWXUHRIWKHVSRQVRUFRQILUPVWKHDJUHHPHQWRI
ERWKSDUWLHVWKDWWKHFOLQLFDOVWXG\ZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKWKHSURWRFRODQGDOO
DSSOLFDEOHODZVDQGUHJXODWLRQVLQFOXGLQJEXWQRWOLPLWHGWRWKH,&+*XLGHOLQHIRU*&3WKH
&RGHRI)HGHUDO5HJXODWLRQV&)5DQGWKHHWKLFDOSULQFLSOHVWKDWKDYHWKHLURULJLQVLQWKH
'HFODUDWLRQRI+HOVLQNL
1RWKLQJLQWKLVGRFXPHQWLVLQWHQGHGWROLPLWWKHDXWKRULW\RIDSK\VLFLDQWRSURYLGH
HPHUJHQF\PHGLFDOFDUHXQGHUDSSOLFDEOHUHJXODWLRQV


,QYHVWLJDWRU6LJQDWXUH

'DWHRI6LJQDWXUH
''000<<<<

7LPHKRXUFORFN
WLPH]RQH





,QYHVWLJDWRU1DPHDQG7LWOHSULQW





&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


/,672)$%%5(9,$7,216
$%*
$UWHULDO%ORRG*DV
$%666,
$FXWH%DFWHULDO6NLQDQG6NLQ6WUXFWXUH,QIHFWLRQV
$&0
$OO&DXVH0RUWDOLW\
$(
$GYHUVH(YHQW
$,'6
$FTXLUHG,PPXQH'HILFLHQF\6\QGURPH
$/7
$ODQLQH$PLQRWUDQVIHUDVH
$3
$ONDOLQH3KRVSKDWDVH
$67
$VSDUWDWH$PLQRWUDQVIHUDVH
$8&
$UHD8QGHUWKH&RQFHQWUDWLRQ7LPH&XUYH
%0,
%RG\0DVV,QGH[
%3
%ORRG3UHVVXUH
ESP
EHDWVSHUPLQXWH
&$%3
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
FF
FXELFFHQWLPHWHU
&'
&OXVWHURIGLIIHUHQWLDWLRQ
&(
&OLQLFDOO\(YDOXDEOH
&)5
&RGHRI)HGHUDO5HJXODWLRQV
&,
&RQILGHQFH,QWHUYDO
&.
&UHDWLQLQHSKRVSKRNLQDVH
&PD[
0D[LPXP3ODVPD&RQFHQWUDWLRQ
&23'
&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH
&U&/
&UHDWLQLQH&OHDUDQFH
&6$
&OLQLFDO6WXG\$JUHHPHQW
&65
&OLQLFDO6WXG\5HSRUW
F666,
&RPSOLFDWHG6NLQDQG6NLQ6WUXFWXUH,QIHFWLRQ
&7
&RPSXWHG7RPRJUDSK\
&;5
&KHVW;UD\
'60&
'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH
(&*
(OHFWURFDUGLRJUDP
H&5)
(OHFWURQLF&DVH5HSRUW)RUP

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

(0$
(XURSHDQ0HGLFLQHV$JHQF\
(0($
$JHQF\IRUWKH(YDOXDWLRQRI0HGLFLQDO3URGXFWV
(27
(QGRI7UHDWPHQW
)'$
)RRGDQG'UXJ$GPLQLVWUDWLRQ
)'	&
)RRG'UXJDQG&RVPHWLF$FW
J
*UDYLW\
*&3
*RRG&OLQLFDO3UDFWLFH
**7
*DPPD*OXWDP\O7UDQVSHSWLGDVH
*,
*DVWURLQWHVWLQDO
+$3
+RVSLWDO$FTXLUHG3QHXPRQLD
+&$3
+HDOWKFDUH$VVRFLDWHG3QHXPRQLD
+'3(
+LJK'HQVLW\3RO\HWK\OHQH
K(5*
KXPDQ(WKHUjJRJR5HODWHG*HQH
ȕK&*
EHWD±KXPDQ&KRULRQLF*RQDGRWURSLQ
+,9
+XPDQ,PPXQRGHILFLHQF\9LUXV
+3)%
+HDOWK3URGXFWVDQG)RRG%UDQFK
,%
,QYHVWLJDWRU¶V%URFKXUH
,&)
,QIRUPHGFRQVHQWIRUP
,&+
,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQRI7HFKQLFDO5HTXLUHPHQWVIRU
5HJLVWUDWLRQRI3KDUPDFHXWLFDOVIRU+XPDQ8VH
,'6$
,QIHFWLRXV'LVHDVHV6RFLHW\RI$PHULFD
,(&
,QGHSHQGHQW(WKLFV&RPPLWWHH
,15
,QWHUQDWLRQDO1RUPDOL]HG5DWLR
,5%
,QVWLWXWLRQDO5HYLHZ%RDUG
,77
,QWHQW7R7UHDW
,8'
,QWUDXWHULQH'HYLFH
,[56
,QWHUDFWLYH9RLFH5HVSRQVH6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP
/&0606
/LTXLG&KURPDWRJUDSK\7DQGHP0DVV6SHFWURPHWU\
/'+
/DFWDWH'HK\GURJHQDVH
/)7
/LYHU)XQFWLRQ7HVW
OSI
/RZ3RZHU)LHOG

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

0'563
0XOWLGUXJ5HVLVWDQW6WUHSWRFRFFXVSQHXPRQLDH
0(
0LFURELRORJLFDOO\(YDOXDEOH
0HG'5$
0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
0,&
0LQLPXP,QKLELWRU\&RQFHQWUDWLRQ
PLFUR,77
0LFURELRORJLFDO,QWHQW7R7UHDW
056$
0HWKLFLOOLQ5HVLVWDQW6WDSK\ORFRFFXVDXUHXV
066$
0HWKLFLOOLQ6XVFHSWLEOH6WDSK\ORFRFFXVDXUHXV
1,
1RQ,QIHULRULW\
16
1RUPDO6DOLQHVRGLXPFKORULGH

3D2
3DUWLDOSUHVVXUHRIDUWHULDOR[\JHQ
3'
3KDUPDFRG\QDPLFV
3,
3ULQFLSDO,QYHVWLJDWRU
3.
3KDUPDFRNLQHWLFV
3257
3QHXPRQLD6HYHULW\,QGH[
37
3UHIHUUHG7HUP0HG'5$
37(
3RVW7KHUDS\(YDOXDWLRQYLVLW
39&
3RO\YLQ\O&KORULGH
TK
(YHU\KRXUV
TK
(YHU\KRXUV
47F
&RUUHFWHG47,QWHUYDO
47F%
47F%D]]HWW¶V&RUUHFWLRQ)RUPXOD
47F)
47F)ULGHULFLD¶V&RUUHFWLRQ)RUPXOD
5(%
5HVHDUFK(WKLFV%RDUG
55
5HVSLUDWRU\5DWH
6$(
6HULRXV$GYHUVH(YHQW
6$3
6WDWLVWLFDO$QDO\VLV3ODQ
6$6
6WDWLVWLFDO$QDO\VLV6RIWZDUH
6%3
6\VWROLF%ORRG3UHVVXUH
62&
6\VWHP2UJDQ&ODVV0HG'5$
VSS
VSHFLHVSOXUDO
VV
VWHDG\VWDWH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

7($(
7UHDWPHQW(PHUJHQW$GYHUVH(YHQW
7)/
7DEOH)LJXUHDQG/LVWLQJ
7*$
7KHUDSHXWLF*RRGV$GPLQLVWUDWLRQ
7PD[
7LPHWR0D[LPXP3ODVPD&RQFHQWUDWLRQ
8/1
8SSHU/LPLWRI1RUPDO
86
8QLWHG6WDWHV
:%&
:KLWH%ORRG&HOO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


'(),1,7,216
7HUP
'HILQLWLRQ
5HJXODWLRQ
7KHWHUPUHJXODWLRQUHIHUVWRDOODSSOLFDEOHUHJXODWLRQVODZVDQGJXLGHOLQHV7KH
UHJXODWLRQVPD\EHLQWHUQDWLRQDOQDWLRQDORUORFDODQGPD\LQFOXGHEXWDUHQRW
OLPLWHGWRWKH&RGHRI)HGHUDO5HJXODWLRQV&)5WKH*RRG&OLQLFDO3UDFWLFH
*&3&RQVROLGDWHG*XLGHOLQH&DQDGDWKH,QWHUQDWLRQDO&RQIHUHQFHRQ
+DUPRQLVDWLRQ*XLGHOLQHIRU*RRG&OLQLFDO3UDFWLFHWKH7KHUDSHXWLF*RRGV
$GPLQLVWUDWLRQ$QQRWDWHG,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ*XLGHOLQHV
$XVWUDOLDWKH:RUOG0HGLFDO$VVRFLDWLRQ'HFODUDWLRQRI+HOVLQNL(WKLFDO
3ULQFLSOHVIRU0HGLFDO5HVHDUFK,QYROYLQJ+XPDQ6XEMHFWV
5HJXODWRU\DJHQF\
7KHWHUPUHJXODWRU\DJHQF\UHIHUVWRDOOKHDOWKDQGUHJXODWRU\DJHQFLHVZLWK
RYHUVLJKWUHVSRQVLELOLW\IRUWKHVWXG\7KHVHPD\EHLQWHUQDWLRQDOQDWLRQDORUORFDO
DQGPD\LQFOXGHEXWDUHQRWOLPLWHGWRWKH$XVWUDOLDQ7KHUDSHXWLF*RRGV
$GPLQLVWUDWLRQ7*$WKH&DQDGLDQ+HDOWK3URGXFWVDQG)RRG%UDQFK+3)%WKH
(XURSHDQ$JHQF\IRUWKH(YDOXDWLRQRI0HGLFLQDO3URGXFWV(0($WKH8QLWHG
6WDWHV86)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$
6SRQVRU
7KHWHUPVSRQVRUUHIHUVWREXWLVQRWOLPLWHGWRWKHVSRQVRUOLVWHGLQWKHIURQWRIWKLV
GRFXPHQWDQGDQ\FRQWUDFWUHVHDUFKRUJDQL]DWLRQWKDWLVEHLQJXVHGIRUWKHVWXG\
7HVWDUWLFOH
$Q\VWXG\GUXJGHYLFHELRORJLFDJHQWRUFRPSDUDWRULQFOXGLQJSODFHERXVHGLQ
VSRQVRUVWXGLHV)RUWHVWDUWLFOHDFFRXQWDELOLW\WKLVWHUPDSSOLHVWRWKHDERYHDUWLFOHV
ZKHQWKH\DUHUHTXLUHGE\WKHSURWRFRODQGVXSSOLHGVKLSSHGE\WKHVSRQVRU
LQFOXGLQJGLOXHQWVVXFKDVQRUPDOVDOLQH>16@IRULQMHFWLRQ
$GYHUVH(YHQW
$QDGYHUVHHYHQW$(LVDQ\XQWRZDUGXQGHVLUHGRUXQSODQQHGHYHQWLQWKHIRUP
RIVLJQVV\PSWRPVGLVHDVHRUODERUDWRU\RUSK\VLRORJLFREVHUYDWLRQVRFFXUULQJLQD
SHUVRQJLYHQDWHVWDUWLFOHRULQDFOLQLFDOVWXG\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'


35272&2/6<1236,6
6WXG\7LWOH
$3KDVH5DQGRPL]HG'RXEOH%OLQG0XOWL&HQWHU6WXG\WR&RPSDUH
WKH6DIHW\DQG(IILFDF\RI2PDGDF\FOLQH,932WR0R[LIOR[DFLQ,932
IRU7UHDWLQJ$GXOW6XEMHFWVZLWK&RPPXQLW\$FTXLUHG%DFWHULDO
3QHXPRQLD&$%3
&OLQLFDO3KDVH

6WXG\5DWLRQDOH
37.KHUHDIWHUUHIHUUHGWRDVRPDGDF\FOLQHLVWKHILUVWPHPEHURI
WKHDPLQRPHWK\OF\FOLQHFODVVRIDQWLELRWLFVZKLFKDUHVHPLV\QWKHWLF
GHULYDWLYHVRIWKHWHWUDF\FOLQHFODVV$VDFODVVWKHWHWUDF\FOLQHVKDYH
EHHQLQXVHIRURYHU\HDUV7KH\DUHZHOOWROHUDWHGDQGKDYHSURYHQ
HIIHFWLYHLQWKHWUHDWPHQWRIDYDULHW\RIEDFWHULDOLQIHFWLRQV
2PDGDF\FOLQHZDVHYDOXDWHGLQD3KDVHVWXG\RIVXEMHFWVZLWK
FRPSOLFDWHGVNLQDQGVNLQVWUXFWXUHLQIHFWLRQF666,DQGD
VSRQVRUWHUPLQDWHG3KDVHVWXG\WKDWHQUROOHGVXEMHFWVZLWKF666,
2PDGDF\FOLQHZDVZHOOWROHUDWHGDQGGHPRQVWUDWHGHIILFDF\VLPLODUWR
DQHVWDEOLVKHGFRPSDUDWRUOLQH]ROLG
2PDGDF\FOLQHKDVEHHQVKRZQWRKDYHLQYLWURDFWLYLW\DJDLQVWWKHPRVW
FRPPRQW\SLFDODQGDW\SLFDOFDXVHVRI&$%3)XUWKHULWKDVEHHQ
VKRZQWREHHIIHFWLYHLQDQLPDOPRGHOVRIORZHUUHVSLUDWRU\WUDFW
LQIHFWLRQVFDXVHGE\6WUHSWRFRFFXVSQHXPRQLDHDQG+DHPRSKLOXV
LQIOXHQ]DH,WLVH[SHFWHGWKDWRPDGDF\FOLQHZLOODFKLHYHOHYHOVLQWKH
ORZHUUHVSLUDWRU\WUDFWFRPSDUDEOHWRUHODWHGWHWUDF\FOLQHVGR[\F\FOLQH
DQGWLJHF\FOLQHZKLFKKDYHEHHQXVHGWRVXFFHVVIXOO\WUHDWVXEMHFWVZLWK
&$%3
2PDGDF\FOLQHKDVGHPRQVWUDWHGDFWLYLW\DJDLQVWWKHPRVWFRPPRQ
&$%3SDWKRJHQVLQFOXGLQJLVRODWHVUHVLVWDQWWRVWDQGDUGVRIFDUH7KLV
VWXG\LVLQWHQGHGWRHYDOXDWHWKHVDIHW\DQGHIILFDF\RILQWUDYHQRXVLY
DQGRUDOSRRPDGDF\FOLQHDVFRPSDUHGWRLYDQGSRPR[LIOR[DFLQLQ
WKHWUHDWPHQWRIDGXOWVZLWK&$%3
6WXG\
2EMHFWLYHV
3ULPDU\REMHFWLYH
7KHSULPDU\REMHFWLYHRIWKLVVWXG\LVWRGHPRQVWUDWHWKDWRPDGDF\FOLQH
PJLYHYHU\KRXUVTKIRUGRVHVIROORZHGE\PJ
LYPJSRRQFHHYHU\KRXUVTKLVQRQLQIHULRUWRPR[LIOR[DFLQ
PJLYSRTKLQWKHWUHDWPHQWRIDGXOWVZLWK&$%3
6HFRQGDU\REMHFWLYHV
x 7RHYDOXDWHWKHVDIHW\RIRPDGDF\FOLQHLQWKHWUHDWPHQWRIDGXOW
VXEMHFWVZLWK&$%3LQWKH6DIHW\SRSXODWLRQ
x 7RHYDOXDWHWKH&OLQLFDO5HVSRQVHDFFRUGLQJWRWKHLGHQWLILHG
FDXVDWLYHSDWKRJHQ
x 7RHYDOXDWHWKHSKDUPDFRNLQHWLFV3.RIRPDGDF\FOLQHLQDGXOW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

VXEMHFWVZLWK&$%3
6WXG\'HVLJQ
7KLVLVDUDQGRPL]HGDFWLYHFRPSDUDWRUFRQWUROOHGGRXEOHEOLQG
3KDVHVWXG\FRPSDULQJRPDGDF\FOLQHDQGPR[LIOR[DFLQLQWKH
WUHDWPHQWRIDGXOWVZLWK&$%33QHXPRQLD6HYHULW\,QGH[>3257@5LVN
&ODVV,,,,,RU,9%RWKLYDQGSRSKDVHVRIWKHVWXG\ZLOOEHGRXEOH
EOLQG(QUROOPHQWRIVXEMHFWVZLWKGLVHDVHFKDUDFWHUL]HGDV32575LVN
&ODVV,,ZLOOEHOLPLWHGWRQRPRUHWKDQRIUDQGRPL]HGVXEMHFWV
(QUROOPHQWRIVXEMHFWVZKRKDYHUHFHLYHGDVLQJOHGRVHRIDQDOORZHG
VKRUWDFWLQJDQWLELRWLFVHH$SSHQGL[ZLWKLQWKHKRXUVSULRUWRWKH
ILUVWGRVHRIWHVWDUWLFOHZLOOEHOLPLWHGWRQRPRUHWKDQRI
UDQGRPL]HGVXEMHFWV
$SSUR[LPDWH
'XUDWLRQRI
6XEMHFW
3DUWLFLSDWLRQ
6XEMHFWVZLOOSDUWLFLSDWHLQWKHVWXG\IRUDSSUR[LPDWHO\GD\V
)ROORZLQJ6FUHHQLQJHOLJLEOHVXEMHFWVZLOOEHUDQGRPO\DVVLJQHGWR
UHFHLYHWRGD\VRIWUHDWPHQWZLWKHLWKHURPDGDF\FOLQHRU
PR[LIOR[DFLQ$SRVWWKHUDS\HYDOXDWLRQYLVLWZLOORFFXUDSSUR[LPDWHO\
WRGD\VDIWHUWKHODVWGRVHRIWHVWDUWLFOHDQGDIROORZXSWHOHSKRQH
FRQWDFWZLOORFFXUDSSUR[LPDWHO\WRGD\VDIWHUWKHILUVWGRVHRIWHVW
DUWLFOH
$SSUR[LPDWH
'XUDWLRQRI
6WXG\
7KHVWXG\LVH[SHFWHGWREHFOLQLFDOO\FRPSOHWHLQDSSUR[LPDWHO\
PRQWKV
$SSUR[LPDWH
1XPEHURI
6XEMHFWV
UDQGRPL]HGVXEMHFWV
$SSUR[LPDWH
1XPEHURI6WXG\
&HQWHUV

'LDJQRVLVDQG
0DLQ&ULWHULDIRU
,QFOXVLRQ
 :ULWWHQDQGVLJQHGLQIRUPHGFRQVHQWPXVWEHREWDLQHGEHIRUHDQ\
DVVHVVPHQWLVSHUIRUPHG
 0DOHRUIHPDOHDJH\HDUVRUROGHU
 +DVDWOHDVWRIWKHIROORZLQJV\PSWRPV
x &RXJK
x 3URGXFWLRQRISXUXOHQWVSXWXP
x '\VSQHDVKRUWQHVVRIEUHDWK
x 3OHXULWLFFKHVWSDLQ
 +DVDWOHDVW7:2RIWKHIROORZLQJDEQRUPDOYLWDOVLJQV
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUSRRU
UHFWDOWHPSHUDWXUH!&>)@RU&>)@
x +\SRWHQVLRQZLWKV\VWROLFEORRGSUHVVXUH6%3PP+J
x +HDUWUDWH!EHDWVSHUPLQXWHESP
x 5HVSLUDWRU\UDWH55!EUHDWKVPLQXWH
 +DVDWOHDVWFOLQLFDOVLJQRUODERUDWRU\ILQGLQJDVVRFLDWHGZLWK

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

&$%3
x +\SR[HPLDSDUWLDOSUHVVXUHRIDUWHULDOR[\JHQ>3D2@
PP+JE\DUWHULDOEORRGJDV$%*
x 3K\VLFDOH[DPLQDWLRQILQGLQJVRISXOPRQDU\FRQVROLGDWLRQHJ
GXOOQHVVRQSHUFXVVLRQEURQFKLDOEUHDWKVRXQGVRUHJRSKRQ\
x $QHOHYDWHGWRWDOZKLWHEORRGFHOO:%&FRXQW
!FHOOVPPRUOHXFRSHQLD:%&FHOOVPP
RUHOHYDWHGLPPDWXUHQHXWURSKLOV!EDQGIRUPVUHJDUGOHVV
RIWRWDOSHULSKHUDO:%&FRXQW
 5DGLRJUDSKLFDOO\FRQILUPHGSQHXPRQLDLHQHZRUSURJUHVVLYH
SXOPRQDU\LQILOWUDWHVRQFKHVW;UD\&;5RUFKHVWFRPSXWHG
WRPRJUDSK\&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDOSQHXPRQLD
ZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
 +DVGLVHDVHFDWHJRUL]HGDVEHLQJ32575LVN&ODVV,,,,,RU,9DW
6FUHHQLQJ6HH$SSHQGL[
 ,VH[SHFWHGWRUHTXLUHDPLQLPXPRIDWOHDVWGD\VRILYWKHUDS\IRU
WKHLQLWLDOWUHDWPHQWRI&$%3
 )HPDOHVPXVWKDYHDQHJDWLYHXULQHSUHJQDQF\WHVWDW6FUHHQLQJDQG
DJUHHWRFRPSO\ZLWKXVLQJDKLJKO\HIIHFWLYHIRUPRIELUWKFRQWURO
HJDEVWLQHQFHSRFRQWUDFHSWLYHLQWUDXWHULQHGHYLFH>,8'@EDUULHU
FRQWUDFHSWLRQ>FRQGRP@WXEDOOLJDWLRQK\VWHUHFWRP\ELODWHUDO
RRSKRUHFWRP\RUYDVHFWRPL]HGSDUWQHUIURP6FUHHQLQJWKURXJK
SRVWWKHUDS\HYDOXDWLRQ37(0DOHVPXVWDJUHHWRXVHDKLJKO\
HIIHFWLYHPHWKRGRIELUWKFRQWUROZLWKIHPDOHSDUWQHUVDQGPXVWQRW
GRQDWHVSHUPIURP6FUHHQLQJWKURXJK37(
0DLQ&ULWHULDIRU
([FOXVLRQ
 +DVUHFHLYHGRUPRUHGRVHVRIDSRWHQWLDOO\HIIHFWLYHV\VWHPLF
DQWLEDFWHULDOWUHDWPHQWZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRI
WHVWDUWLFOHDVXEMHFWZLOOEHFRQVLGHUHGWRKDYHUHFHLYHGD
SRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQWLIWKHSDWKRJHQ
LGHQWLILHGDVFDXVLQJLQIHFWLRQLVVKRZQWREHVXVFHSWLEOHWRWKH
DQWLEDFWHULDOJLYHQRULQWKHFLUFXPVWDQFHZKHUHDSDWKRJHQLVQRW
LGHQWLILHGLIWKHDQWLEDFWHULDODJHQWLVDSSURYHGIRUWUHDWPHQWRI
SQHXPRQLDRULVNQRZQWRKDYHDFWLYLW\DJDLQVWDQ\RIWKHOHDGLQJ
FDXVHVRI&$%3>HJ6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXV
LQIOXHQ]DH0RUD[HOODFDWDUUKDOLV6WDSK\ORFRFFXVDXUHXV
/HJLRQHOODSQHXPRSKLOD@(;&(37,216XEMHFWVPD\EHHOLJLEOH
GHVSLWHSULRUDQWLEDFWHULDOWKHUDS\LIWKH\KDYHEHHQWUHDWHGZLWKD
VLQJOHGRVHRIDVKRUWDFWLQJDQWLEDFWHULDOLHDQDQWLEDFWHULDOZKRVH
VWDQGDUGGRVLQJUHJLPHQLVPRUHIUHTXHQWWKDQRQFHSHUGD\VHH
$SSHQGL[
 ,VNQRZQRUVXVSHFWHGWRKDYH&$%3FDXVHGE\DSDWKRJHQWKDWPD\
EHUHVLVWDQWWRHLWKHUWHVWDUWLFOHHJ.OHEVLHOODSQHXPRQLDH
3VHXGRPRQDVDHUXJLQRVD3QHXPRF\VWLVMLURYHFLREOLJDWH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

DQDHUREHVP\FREDFWHULDIXQJDOSDWKRJHQV
 6XVSHFWHGRUFRQILUPHGHPS\HPDDSDUDSQHXPRQLFSOHXUDOHIIXVLRQ
LVQRWDQH[FOXVLRQFULWHULDRUOXQJDEVFHVV
 6XEMHFWVZLWKNQRZQRUVXVSHFWHGKRVSLWDODFTXLUHGSQHXPRQLD
+$3RUKHDOWKFDUHDVVRFLDWHGSQHXPRQLD+&$3+$3LVGHILQHG
DVSQHXPRQLDZLWKRQVHWRIFOLQLFDOVLJQVDQGV\PSWRPVKRXUV
DIWHUKRVSLWDOL]DWLRQLQDQDFXWHLQVXEMHFWKHDOWKFDUHIDFLOLW\
+&$3LVGHILQHGDVSQHXPRQLDDFTXLUHGLQDORQJWHUPFDUHRU
VXEDFXWHLQWHUPHGLDWHKHDOWKFDUHIDFLOLW\HJQXUVLQJKRPHRULQD
VXEMHFWDGPLWWHGZLWKSQHXPRQLDIROORZLQJDUHFHQWKRVSLWDOL]DWLRQ
GLVFKDUJHGZLWKLQGD\VRIFXUUHQWDGPLVVLRQDQGSUHYLRXVO\
KRVSLWDOL]HGIRUKRXUV
 +DVNQRZQRULVFOLQLFDOO\VXVSHFWHGWRKDYHRUPRUHRIWKH
IROORZLQJSULRUWRUDQGRPL]DWLRQ
x DODQLQHDPLQRWUDQVIHUDVH$/7RUDVSDUWDWHDPLQRWUDQVIHUDVH
$67î8SSHU/LPLWRI1RUPDO8/1
x WRWDOELOLUXELQ!î8/1RU
x HYLGHQFHRIHQGVWDJHOLYHUGLVHDVHHJDVFLWHVKHSDWLF
HQFHSKDORSDWK\
 +DVDNQRZQKLVWRU\RIKDYLQJH[SHULHQFHGXQVWDEOHFDUGLDFGLVHDVH
HJXQVWDEOHDQJLQDP\RFDUGLDOLQIDUFWLRQFRQJHVWLYHKHDUWIDLOXUH
FDUGLDFDUUK\WKPLDHWFZLWKLQWKHPRQWKVSULRUWR6FUHHQLQJ
 $UHGLDJQRVHGZLWKORQJFRUUHFWHG47LQWHUYDO47FV\QGURPHXVH
GUXJVRISRWHQWLDOSURDUUK\WKPLFRU47FSURORQJLQJHIIHFWDQGRU
SUHVHQWZLWKWDFK\DUUK\WKPLD
 5HTXLUHVDQ\IRUPRIGLDO\VLVHJKHPRGLDO\VLVSHULWRQHDOGLDO\VLV
 +LVWRU\RUHYLGHQFHRIVHYHUHUHQDOGLVHDVHRULVNQRZQWRKDYHD
FDOFXODWHGFUHDWLQLQHFOHDUDQFH&U&ORIP/PLQXWHXVLQJWKH
&RFNFURIW*DXOWHTXDWLRQVHH$SSHQGL[
(YLGHQFHRIVLJQLILFDQWLPPXQRORJLFDOGLVHDVHGHWHUPLQHGE\DQ\RI
WKHIROORZLQJ
x &XUUHQWRUDQWLFLSDWHGQHXWURSHQLDGHILQHG
DVQHXWURSKLOVPP
x ,QIHFWLRQZLWK+XPDQ,PPXQRGHILFLHQF\9LUXV+,9DQGD
FOXVWHURIGLIIHUHQWLDWLRQ&'FRXQWFHOOVPPRU
DQRWKHU$FTXLUHG,PPXQH'HILFLHQF\6\QGURPH
$,'6GHILQLQJLOOQHVV
x 7KHUHFHLSWRIFDQFHUFKHPRWKHUDS\UDGLRWKHUDS\RUSRWHQW
QRQFRUWLFRVWHURLGLPPXQRVXSSUHVVDQWGUXJVHJF\FORVSRULQH
D]DWKLRSULQHWDFUROLPXVLPPXQHPRGXODWLQJPRQRFORQDO
DQWLERG\WKHUDS\HWFZLWKLQWKHSDVWPRQWKVRUWKHUHFHLSWRI

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

FRUWLFRVWHURLGVHTXLYDOHQWWRRUJUHDWHUWKDQPJRISUHGQLVRQH
SHUGD\RUIRUPRUHWKDQGD\VLQWKHSULRUGD\V
5HTXLUHVDFXWHSKDUPDFRORJLFLQWHUYHQWLRQWRVWDELOL]HEORRG
SUHVVXUH%3DQGRUDGHTXDWHWLVVXHSHUIXVLRQ25KDVHYLGHQFHRI
VHSWLFVKRFNGHILQHGE\$//RIWKHIROORZLQJ
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUSRRU
UHFWDOWHPSHUDWXUH!&>)@RU&>&@
x +HDUWUDWH!EHDWVPLQXWH
x 55!EUHDWKVPLQXWH
x :%&!FHOOVPPRUFHOOVPPRU!
LPPDWXUHEDQGIRUPVUHJDUGOHVVRIWKHWRWDOSHULSKHUDO:%&
FRXQW
x +\SRWHQVLRQZLWK6%3PP+JGHVSLWHDQLYIOXLGFKDOOHQJH
RIFFNJRYHUDPLQXWHSHULRG
x 3HUIXVLRQDEQRUPDOLWLHVWKDWPD\LQFOXGHEXWDUHQRWOLPLWHGWR
ODFWLFDFLGRVLVEORRGODFWDWHFRQFHQWUDWLRQPPRO/ROLJXULD
RUDFXWHDOWHUDWLRQLQPHQWDOVWDWXV
.QRZQRUVXVSHFWHGSULPDU\RUPHWDVWDWLFQHRSODVWLFOXQJGLVHDVH
DVSLUDWLRQSQHXPRQLDF\VWLFILEURVLVEURQFKLHFWDVLVEURQFKLDO
REVWUXFWLRQHJSRVWREVWUXFWLYHSQHXPRQLDFKURQLFQHXURORJLFDO
GLVRUGHUSUHYHQWLQJFOHDUDQFHRISXOPRQDU\VHFUHWLRQVRUVHYHUH
FKURQLFREVWUXFWLYHSXOPRQDU\GLVHDVH&23'
3UHJQDQWRUQXUVLQJEUHDVWIHHGLQJZRPHQ
+DVDKLVWRU\RIK\SHUVHQVLWLYLW\RUDOOHUJLFUHDFWLRQHJ
DQDSK\OD[LVXUWLFDULDRWKHUVLJQLILFDQWUHDFWLRQWRDQ\WHWUDF\FOLQH
HJPLQRF\FOLQHGR[\F\FOLQHRUWLJHF\FOLQHRUWRDQ\
IOXRURTXLQRORQHDQWLELRWLF
+DVDKLVWRU\RISVHXGRWXPRUFHUHEULRUSULRUZLWKLQZHHNVSULRU
WR6FUHHQLQJRUSODQQHGFRQFRPLWDQWXVHRILVRWUHWLQRLQ
+DVDKLVWRU\RIV\VWHPLFOXSXVHU\WKHPDWRVXVRUOXSXVOLNH
V\QGURPH
+DVFXUUHQWHYLGHQFHRISDQFUHDWLWLV
+DVDKLVWRU\RIDFHQWUDOQHUYRXVV\VWHPGLVRUGHUWKDWPD\
SUHGLVSRVHWRVHL]XUHVRUORZHUWKHVHL]XUHWKUHVKROG
8VHRIRWKHULQYHVWLJDWLRQDOGUXJVZLWKLQKDOIOLYHVRUGD\VSULRU
WR6FUHHQLQJZKLFKHYHULVORQJHU
+DVSUHYLRXVO\EHHQWUHDWHGZLWKRPDGDF\FOLQHRUSUHYLRXVO\
HQUROOHGLQWKLVVWXG\
$Q\SODQQHGPHGLFDOLQWHUYHQWLRQWKDWPLJKWLQWHUIHUHZLWKWKH
DELOLW\WRFRPSO\ZLWKWKHVWXG\UHTXLUHPHQWV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

+DVDOLIHH[SHFWDQF\RIOHVVWKDQRUHTXDOWRPRQWKVRUDQ\
FRQFRPLWDQWFRQGLWLRQWKDWLQWKHRSLQLRQRIWKHLQYHVWLJDWRULV
OLNHO\WRLQWHUIHUHZLWKHYDOXDWLRQRIWKHUHVSRQVHRIWKHLQIHFWLRQ
XQGHUVWXG\GHWHUPLQDWLRQRIDGYHUVHHYHQWV$(VRUFRPSOHWLRQRI
WKHH[SHFWHGFRXUVHRIWUHDWPHQW
3ULRUDQG
&RQFRPLWDQW
7UHDWPHQW
1RV\VWHPLFSULRURUFRQFRPLWDQWDQWLEDFWHULDOWKHUDS\LVDOORZHGRWKHU
WKDQDVLQJOHGRVHRIDVKRUWDFWLQJDQWLEDFWHULDOVHH([FOXVLRQDQG
$SSHQGL[ZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
$OORWKHUPHGLFDWLRQVQRWSURKLELWHGE\WKHSURWRFRODQGFRQVLGHUHG
QHFHVVDU\IRUWKHVXEMHFW¶VZHOIDUHPD\EHDGPLQLVWHUHGDQGRU
FRQWLQXHGXQGHUWKHVXSHUYLVLRQRIWKHLQYHVWLJDWRU
7HVW$UWLFOHV
6XEMHFWVZLOOEHUDQGRPL]HGWRRIWKHIROORZLQJWUHDWPHQWDUPV
x 2PDGDF\FOLQH
x 0R[LIOR[DFLQ
'RVDJHDQG
$GPLQLVWUDWLRQ
x
2PDGDF\FOLQHPJLYTKIRUGRVHVIROORZHGE\PJ
LYTKVWDUWLQJKDIWHUILUVWGRVHZLWKWKHRSWLRQWRVZLWFK
WRPJSRTKDIWHUDPLQLPXPRIGD\VGRVHVRILY
WUHDWPHQW
x
0R[LIOR[DFLQPJLYTKZLWKDVLQJOHSODFHERLQIXVLRQWR
PDWFKWKHRPDGDF\FOLQHGRVLQJUHJLPHQKRXUVDIWHUWKHILUVW
GRVHRQ'D\ZLWKWKHRSWLRQWRVZLWFKWRPJSRTK
DIWHUDPLQLPXPRIGD\VGRVHVRILYWUHDWPHQW
6DIHW\(YDOXDWLRQ
x
3K\VLFDOH[DPV
x
$(VDQG6$(V
x
9LWDOVLJQV
x
/DERUDWRU\DVVHVVPHQWV
x
(OHFWURFDUGLRJUDP(&*
x
3UHJQDQF\DVVHVVPHQWV
(IILFDF\
(YDOXDWLRQ
x
,QRUGHUWRVDWLVI\GLIIHUHQWKHDOWKDXWKRULW\UHTXLUHPHQWVWKH
SULPDU\YDULDEOHVDVVHVVLQJHIILFDF\ZLOOEHWHVWHGZLWK
UHVSRQVHHQGSRLQWV
 6XFFHVVIXO(DUO\&OLQLFDO5HVSRQVHKRXUVDIWHUILUVW
GRVHZLOOEHGHWHUPLQHGSURJUDPPDWLFDOO\DQGGHILQHGDV
VXUYLYDOZLWKLPSURYHPHQWLQDWOHDVWRIVXEMHFW
V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQ
G\VSQHDDVDVVHVVHGE\WKHLQYHVWLJDWRUZLWKRXW
GHWHULRUDWLRQLQDQ\RIWKHVHV\PSWRPV
 6XFFHVVIXO,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVH
DWWKH37(YLVLWGHILQHGDVVXUYLYDODIWHUFRPSOHWLRQRIDWHVW
DUWLFOHUHJLPHQZLWKUHVROXWLRQRIVLJQVDQGV\PSWRPVRI

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

WKHLQIHFWLRQWRWKHH[WHQWWKDWIXUWKHUDQWLEDFWHULDOWKHUDS\LV
QRWQHFHVVDU\
x
$VVHVVPHQWRIVLJQVDQGV\PSWRPVRI&$%3E\WKH
LQYHVWLJDWRU
x
0LFURELRORJLFDODVVHVVPHQWRIWKHLQIHFWLRQ
x
$VVHVVPHQWRIFOLQLFDOUHVSRQVH
+HDOWK2XWFRPHV
$VVHVVPHQW
x
5HVRXUFHXWLOL]DWLRQ
3KDUPDFRNLQHWLFV
x
3RSXODWLRQ3.DQDO\VLV
6WDWLVWLFDO
$QDO\VLV
$QXPEHURIVXEMHFWSRSXODWLRQVKDYHEHHQGHILQHGIRUWKHYDULRXV
DQDO\VHVRIHIILFDF\DQGVDIHW\DVIROORZV
x 7KHLQWHQWWRWUHDW,77SRSXODWLRQZLOOFRQVLVWRIDOO
UDQGRPL]HGVXEMHFWV
x 7KHPLFURELRORJLFDOLQWHQWWRWUHDWPLFUR,77SRSXODWLRQZLOO
FRQVLVWRIVXEMHFWVLQWKH,77SRSXODWLRQZKRKDYHDWOHDVW
FDXVDWLYHSDWKRJHQLGHQWLILHGDW6FUHHQLQJIURPFXOWXUHRID
UHVSLUDWRU\VSHFLPHQHJUHVSLUDWRU\IOXLGREWDLQHGE\
EURQFKRDOYHRODUODYDJHRUEURQFKRVFRS\SOHXUDOIOXLGREWDLQHG
E\WKRUDFHQWHVLVRUH[SHFWRUDWHGRULQGXFHGVSXWXPPHHWLQJ
DGHTXDF\FULWHULDFXOWXUHRIEORRGRUIURPDFXOWXUH
LQGHSHQGHQWPHWKRGHJSRVLWLYHXULQDU\DQWLJHQWHVWIRU
6WUHSWRFRFFXVSQHXPRQLDHRU/HJLRQHOODSQHXPRSKLODRU
SRVLWLYHVHURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPD
SQHXPRQLDHRU&KODP\GRSKLODSQHXPRQLDH
x 7KHFOLQLFDOO\HYDOXDEOH&(SRSXODWLRQZLOOFRQVLVWRIDOO,77
VXEMHFWVZKRUHFHLYHGWHVWDUWLFOHKDYHDTXDOLI\LQJ&$%3DQ
DVVHVVPHQWRIRXWFRPHDQGPHHWDOORWKHUHYDOXDELOLW\FULWHULD
GHWDLOHGLQWKH6WDWLVWLFDO$QDO\VLV3ODQ6$3
x 7KHPLFURELRORJLFDOO\HYDOXDEOH0(SRSXODWLRQZLOOLQFOXGH
VXEMHFWVLQWKH&(SRSXODWLRQZKRKDYHDWOHDVWFDXVDWLYH
SDWKRJHQLGHQWLILHGDW6FUHHQLQJ
x 7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWV
ZKRUHFHLYHGDWOHDVWGRVHRIWHVWDUWLFOH
$VLGHGFRQILGHQFHLQWHUYDO&,DSSURDFKIRUWKHGLIIHUHQFHLQ
WKHUDWHRIHDUO\FOLQLFDOVXFFHVVLQWKH,77SRSXODWLRQSULPDU\DQDO\VLV
IRUWKH86)'$ZLOOEHXVHGWRWHVWIRUQRQLQIHULRULW\1,RIWKH
RPDGDF\FOLQHDUPFRPSDUHGWRWKHPR[LIOR[DFLQDUP)RUWKHSULPDU\
DQDO\VLVIRUWKH(XURSHDQ0HGLFLQHV$JHQF\(0$&,VIRUWKH
GLIIHUHQFHLQWKHUDWHRIFOLQLFDOVXFFHVVDW37(LQWKH,77DQG&(
SRSXODWLRQVZLOOEHXVHGWRWHVWIRUWKH1,RIWKHRPDGDF\FOLQHDUP
FRPSDUHGWRWKHPR[LIOR[DFLQDUP

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

6DIHW\ZLOOEHDVVHVVHGWKURXJKWKHXVHRIVXPPDU\VWDWLVWLFVDQGFOLQLFDO
UHYLHZRIUHSRUWHG$(VFKDQJHVLQYLWDOVLJQV(&*VDQGODERUDWRU\
UHVXOWVREWDLQHGIURPEORRGVDPSOHVWDNHQGXULQJWKHVWXG\
'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH
$'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH'60&LQGHSHQGHQWRIWKH
VSRQVRUZLOOSURYLGHRQJRLQJPRQLWRULQJRIVDIHW\GDWD'DWDZLOOEH
SURYLGHGWRWKH'60&DVWUHDWPHQW$DQGWUHDWPHQW%
5DWLRQDOHIRU
1XPEHURI
6XEMHFWV
7KHVWXG\LVGHVLJQHGWRVKRZ1,LQWKHSULPDU\HIILFDF\RXWFRPHRI
(DUO\&OLQLFDO5HVSRQVHDWKRXUVIROORZLQJWKHILUVWGRVHRIWHVW
DUWLFOHLQWKH,77SRSXODWLRQ$Q1,PDUJLQRIZLOOEHXVHGIRUWKH
DQDO\VLVLQWKH,77SRSXODWLRQ7KH1,PDUJLQZDVEDVHGRQDQDQDO\VLV
RIWKHKLVWRULFDOGDWDUHJDUGLQJWKHWUHDWPHQWHIIHFWRIDQWLELRWLFVLQ
SQHXPRQLD
7KHVDPSOHVL]HGHWHUPLQDWLRQLVEDVHGRQHQVXULQJVXIILFLHQWSRZHUIRU
WKHVHFRQGDU\HIILFDF\DQDO\VHVRI,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(LQWKH&(DQG,77SRSXODWLRQVFRSULPDU\HIILFDF\
RXWFRPHVIRU(0$DVZHOODVWKHSULPDU\HIILFDF\DQDO\VLVRI(DUO\
&OLQLFDO5HVSRQVHHIILFDF\RXWFRPHIRU)'$
)RUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQW
LQWKH,77SRSXODWLRQ32575LVN&ODVV,,,DQG,9DVVXPLQJDQ
RXWFRPHUDWHRILQERWKWUHDWPHQWJURXSV1,PDUJLQRI
SRZHUDQGDVLGHGDOSKDOHYHORIVLQFH&$%3VWXG\LVEHLQJ
FRQGXFWHGXVLQJWKHVDPSOHVL]HGHWHUPLQDWLRQPHWKRGRI)DUULQJWRQ
DQG0DQQLQJ)DUULQJWRQDQG0DQQLQJDWRWDORIVXEMHFWV
32575LVN&ODVV,,,DQG,9DUHUHTXLUHG$VVXPLQJDQ
HYDOXDELOLW\UDWHVXEMHFWVZLOOEHDYDLODEOHLQWKH&(SRSXODWLRQ
$VVXPLQJDQUHVSRQVHUDWHLQERWKWUHDWPHQWJURXSVD1,
PDUJLQVLGHGDOSKDOHYHORIWKHUHLVSRZHUWRVKRZ1,
IRU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(LQWKH&(
SRSXODWLRQ
,IRIHQUROOHGVXEMHFWVDUHDVVXPHGWRKDYH&$%3RI32575LVN
&ODVV,,DWRWDORIVXEMHFWVDUHUHTXLUHG)RUWKH(DUO\&OLQLFDO
5HVSRQVHSULPDU\HIILFDF\HQGSRLQWZLWKVXEMHFWVLQWKH,77
SRSXODWLRQDUHVSRQVHUDWHRIIRUERWKWUHDWPHQWJURXSVZLWKD1,
PDUJLQRIDVLGHGDOSKDOHYHORIWKHUHLVDSRZHUWR
VKRZ1,$VVXPLQJWKHPLFURELRORJLFDOHYDOXDELOLW\UDWHLVDWRWDO
RIVXEMHFWVDUHH[SHFWHGWREHLQWKHPLFUR,77SRSXODWLRQ
7KXVVXEMHFWVSURYLGHVVXIILFLHQWSRZHUIRUWKHSULPDU\HIILFDF\
DQDO\VHVIRUERWKWKH)'$DQG(0$UHJXODWRU\DXWKRULWLHV
(WKLFDO
&RQVLGHUDWLRQV
7KLVVWXG\ZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKDSSOLFDEOHODZVDQG
UHJXODWLRQVLQFOXGLQJEXWQRWOLPLWHGWRWKH,QWHUQDWLRQDO&RQIHUHQFHRQ
+DUPRQLVDWLRQ*XLGHOLQHRI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
)(%

,1'

3KDUPDFHXWLFDOVIRU+XPDQXVH,&+*XLGHOLQHIRU*RRG&OLQLFDO
3UDFWLFH*&3DQGWKHHWKLFDOSULQFLSOHVWKDWKDYHWKHLURULJLQVLQWKH
'HFODUDWLRQRI+HOVLQNL7KHLQVWLWXWLRQDOUHYLHZERDUG
,5%LQGHSHQGHQWHWKLFVFRPPLWWHH,(&UHVHDUFKHWKLFVERDUG5(%
PXVWUHYLHZDQGDSSURYHWKHSURWRFRODQGLQIRUPHGFRQVHQWIRUP,&)
EHIRUHDQ\VXEMHFWVDUHHQUROOHG7KHVXEMHFWPXVWEHFRQVHQWHGXVLQJ
WKHDSSURYHG,&)EHIRUHDQ\SURFHGXUHVVSHFLILHGLQWKHSURWRFRODUH
SHUIRUPHG

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
)(%
,1'


678'<)/2:&+$57
6WXG\3KDVH
6FUHHQLQJE
'RXEOH%OLQG3KDVH
)ROORZXS3KDVH


LY7UHDWPHQW3KDVH
LYRUSR7UHDWPHQW3KDVH


6WXG\'D\D

'D\
'D\

'D\

'D\

'D\ 'D\F 'D\

'D\F (27G
37(H
)LQDO
)ROORZXSI


LYGRVHLYGRVH










6FUHHQLQJDQG(OLJLELOLW\3URFHGXUHV
6LJQHG,QIRUPHG&RQVHQWJ
;












0HGLFDO+LVWRU\FXUUHQWPHGLFDO
FRQGLWLRQVGHPRJUDSK\
;












$VVHVVPHQWRI&$%3V\PSWRPVHYHULW\K
;


;
;
;
;
;
;
;
;
;

&KHVW;UD\RU&7VFDQL
;












32575LVN&ODVV$%*M
;












%ORRGDQGXULQHVDPSOHVIRUORFDOODE
KHPDWRORJ\FKHPLVWU\XULQDO\VLVSUHJQDQF\N
;












5HYLHZRI,QFOXVLRQDQG([FOXVLRQ
FULWHULD5DQGRPL]DWLRQLI(OLJLEOH
;












&OLQLFDO3URFHGXUHVDQG7HVW$UWLFOH$GPLQLVWUDWLRQ
7HVW$UWLFOH$GPLQLVWUDWLRQDQG
$FFRXQWDELOLW\O

;
;
;
;
;
;
;
;
;
;


3K\VLFDOH[DPLQDWLRQP
;


;
;
;
;
;
;
;
;
;

9LWDOVLJQV
;
;Q
;Q
;Q
;
;
;
;
;
;
;
;

OHDG(&*R
;
;

;




;

;


%ORRGIRU&HQWUDO/DEWHVWV
KHPDWRORJ\FKHPLVWU\SUHJQDQF\
;S




;


;
;
;S
;S

$GYHUVH(YHQWVT
;
;
;

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
)(%
,1'

6WXG\3KDVH
6FUHHQLQJE
'RXEOH%OLQG3KDVH
)ROORZXS3KDVH


LY7UHDWPHQW3KDVH
LYRUSR7UHDWPHQW3KDVH


6WXG\'D\D

'D\
'D\

'D\

'D\

'D\ 'D\F 'D\

'D\F (27G
37(H
)LQDO
)ROORZXSI


LYGRVHLYGRVH










3ULRU	&RQFRPLWDQW0HGLFDWLRQVU
;
;
;
3ODVPDVDPSOHVLQKHSDULQIRU3.
DQDO\VHVV



;
;
;
;






$VVHVVPHQWIRUSR6ZLWFKRUQHHGIRU
FRQWLQXHGWKHUDS\W





;
;
;
;
;



,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO
5HVSRQVH










;
;

0LFURELRORJLFDO3URFHGXUHV
%ORRGFXOWXUHX
;
$V&OLQLFDOO\,QGLFDWHG



5HVSLUDWRU\FXOWXUH	*UDPVWDLQY
;









;


8ULQHIRU/RFDOODE/HJLRQHOODSQHXPRSKLOD
DQG6WUHSWRFRFFXVSQHXPRQLDHDQWLJHQWHVW
;










;

%ORRGIRU&HQWUDOODE/HJLRQHOOD
SQHXPRSKLOD0\FRSODVPDSQHXPRQLDH	
&KODP\GRSKLODSQHXPRQLDHVHURORJ\
;










;

$%* DUWHULDOEORRGJDV$( DGYHUVHHYHQW%3 EORRGSUHVVXUHȕK&* EHWD±KXPDQ&KRULRQLF*RQDGRWURSLQ&$%3 FRPPXQLW\DFTXLUHGEDFWHULDOSQHXPRQLD
&7 FRPSXWHGWRPRJUDSK\&;5 FKHVW;UD\(&* HOHFWURFDUGLRJUDPH&5) HOHFWURQLFFDVHUHSRUWIRUP(27 HQGRIWUHDWPHQW,&) LQIRUPHGFRQVHQWIRUP
,[56 ,QWHUDFWLYH9RLFH5HVSRQVH6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP3. SKDUPDFRNLQHWLFV37( SRVWWKHUDS\HYDOXDWLRQ6$( VHULRXVDGYHUVHHYHQW
D6WXG\'D\LVWKHILUVWGD\RIWHVWDUWLFOHDGPLQLVWUDWLRQ6XEVHTXHQWVWXG\GD\VPD\EHFRQVHFXWLYHFDOHQGDUGD\V
E)ROORZLQJWKHVLJQLQJRIDQ,&)DOO6FUHHQLQJHYDOXDWLRQVVKRXOGEHFRPSOHWHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
F7KH'D\YLVLWLVRSWLRQDOIRUVXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPDKRVSLWDOVHWWLQJ$'D\YLVLWVKRXOGEHFRQGXFWHG
IRUVXEMHFWVZLWKWUHDWPHQWH[WHQGLQJEH\RQGGD\VXQOHVVWKLVYLVLWFRLQFLGHVZLWKWKH(27YLVLW
G7REHFRQGXFWHGRQWKHGD\RIRUZLWKLQGD\VIROORZLQJWKHODVWGRVHRIWHVWDUWLFOH6KRXOGDOVREHFRQGXFWHGIRUDQ\SUHPDWXUHO\ZLWKGUDZQVXEMHFW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
)(%
,1'

H7REHFRQGXFWHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\
I7REHFRQGXFWHGWRGD\VDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWHVWDUWLFOH7KH)LQDO)ROORZXSDVVHVVPHQWPD\EHFRQGXFWHGYLDWHOHSKRQHFRQWDFWRUE\DQRWKHU
LQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUHFRQVLGHUHGWREH&OLQLFDO6XFFHVVHVDQGKDGQR$(VQRWHGDWRUDIWHUWKH37(YLVLW2WKHUZLVHWKHYLVLWPXVWEH
FRQGXFWHGLQSHUVRQ
J:ULWWHQDQGVLJQHG,&)PXVWEHREWDLQHGEHIRUHDQ\DVVHVVPHQWLVSHUIRUPHG
K7KHLQYHVWLJDWRUVKRXOGDVVHVVWKHVHYHULW\RIWKHVXEMHFW¶V&$%3V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDEDVHGXSRQWKH&RPPXQLW\
$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWLQ$SSHQGL[
L 6XEMHFWVPXVWKDYHDFRQILUPLQJ&;5RU&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDOSQHXPRQLDZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
M 2QO\VXEMHFWVZLWKD32575LVN&ODVVRI,,,,,RU,9DUHHOLJLEOHIRUHQUROOPHQWVHH$SSHQGL[
N/RFDOODERUDWRU\KHPDWRORJ\DQGFKHPLVWU\HYDOXDWLRQVUHTXLUHGIRUDVVHVVLQJVXEMHFWHOLJLELOLW\XULQDO\VLVIRU:%&DXULQHSUHJQDQF\WHVWIRUZRPHQRQO\VHUXP
WUDQVDPLQDVHRUELOLUXELQOHYHOV
O 7KHWRWDOGXUDWLRQRIWHVWDUWLFOHWKHUDS\LYSOXVSRIRUDOOVXEMHFWVZLOOEHDWOHDVWGD\VDQGQRPRUHWKDQGD\V7KHSKDUPDFLVWRUGHVLJQHHZLOOEHXQEOLQGHGWR
SUHSDUHDSSURSULDWHGRVHVRIWKH,[56LGHQWLILHGWHVWDUWLFOH$QXQEOLQGHGPRQLWRUZLOOSHUIRUPGUXJDFFRXQWDELOLW\DQGUHYLHZWKHSKDUPDFLVW¶VUHFRUGV6XEMHFWV
GLVFKDUJHGZLWKSRWHVWDUWLFOHZLOOEHDVNHGWRUHWXUQDOOXQXVHGWHVWDUWLFOHDQGSDFNDJLQJDWHDFKYLVLWVHH6HFWLRQ$WWKH(27YLVLWVXEMHFWVGLVFKDUJHGZLWKSRWHVW
DUWLFOHZLOOUHWXUQDQ\UHPDLQLQJXQXVHGSRWHVWDUWLFOHDQGVLWHVWDIIZLOOSHIRUPDFFRXQWDELOLW\
P$IXOOSK\VLFDOH[DPLQDWLRQZLOOEHFRPSOHWHGDW6FUHHQLQJVHH6HFWLRQWKHUHDIWHURQO\FKDQJHVIURP6FUHHQLQJPHDVXUHPHQWVVKRXOGEHUHFRUGHGDV$(VLQWKH
H&5)V
Q)RUWKHILUVWGRVHVRIWHVWDUWLFOHKHDUWUDWHDQG%3VKRXOGEHUHFRUGHGDWWKHIROORZLQJWLPHVMXVWSULRUWRWKHILUVWLQIXVLRQZLWKLQPLQXWHVDIWHUWKHVWDUWRIWKH
ILUVWLQIXVLRQDQGDWKRXUVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQVHH7DEOHDQG6HFWLRQ
R$OHDG(&*VKRXOGEHSHUIRUPHGMXVWSULRUZLWKLQPLQXWHVDQGPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWDQGWKLUGGRVHVRIWHVWDUWLFOHDWWKH
'D\YLVLWDWWKH(27YLVLWDQGDVRWKHUZLVHFOLQLFDOO\LQGLFDWHGVHH6HFWLRQ
S%ORRGZLOOEHFROOHFWHGIURPDOOIHPDOHVXEMHFWVIRUDVHUXPȕK&*SUHJQDQF\WHVWDWWKH&HQWUDO/DERUDWRU\DWWKH6FUHHQLQJ(27DQG37(YLVLWV
T$VXEMHFW¶V$(VDQG6$(VZLOOEHUHFRUGHGDQGUHSRUWHGIURPVLJQLQJRIWKH,&)WRWKH)LQDO)ROORZXSDVVHVVPHQW
U 7UHDWPHQWVWKDWKDYHEHHQDGPLQLVWHUHGZLWKLQWKHGD\VSULRUWRWKHGDWHRIVLJQLQJWKH,&)RUGXULQJWKH6FUHHQLQJSKDVHZLOOEHUHFRUGHGLQWKHH&5)$OOPHGLFDWLRQV
DQGVLJQLILFDQWQRQGUXJWKHUDSLHVDGPLQLVWHUHGDIWHUWKHILUVWGRVHRIWHVWDUWLFOHPXVWEHUHFRUGHGLQWKHH&5)VHH6HFWLRQ
V8SWRVDPSOHVZLOOEHFROOHFWHGSHUVXEMHFW7KH3.VDPSOHFROOHFWLRQVFKHGXOHIRUWKHLQGLYLGXDOVXEMHFWZLOOEHSURYLGHGE\WKHVSRQVRUVHH6HFWLRQ
W $WDQ\WLPHDIWHUWKHILUVWGD\VRILYWUHDWPHQWDIWHULYGRVHVWKHVXEMHFWPD\EHVZLWFKHGWRSRPHGLFDWLRQEDVHGXSRQGHWHUPLQDWLRQRIFOLQLFDOVWDELOLW\5HIHUWR
SURWRFRO6HFWLRQIRUUHTXLUHGFULWHULDWRVZLWFKWRSRWUHDWPHQW$WWKHLQYHVWLJDWRU¶VGLVFUHWLRQDOOWKHUDS\PD\EHGLVFRQWLQXHGDIWHUWKHVHYHQWKGD\RI

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
)(%
,1'

WUHDWPHQWDIWHULYRUSRWRWDOGRVHVZKHQWKHLQIHFWLRQLVFRQVLGHUHGFOLQLFDOO\FXUHGEDVHGRQQRUPDOL]DWLRQRIWKHFOLQLFDOVLJQVDQGV\PSWRPVRILQIHFWLRQDQG
WKHLQYHVWLJDWRU¶VFOLQLFDODVVHVVPHQWWKDWFRQWLQXHGV\VWHPLFDQWLEDFWHULDOWKHUDS\LVQRORQJHUQHHGHG
X,I6FUHHQLQJEORRGFXOWXUHVDUHSRVLWLYHIRUDSRWHQWLDOSDWKRJHQEORRGFXOWXUHVPXVWEHUHSHDWHGDWHDFKYLVLWRUPRUHIUHTXHQWO\LIFOLQLFDOO\LQGLFDWHGXQWLOQHJDWLYH
FXOWXUHVDUHREWDLQHGVHH6HFWLRQ
Y&XOWXUHDQG*UDPVWDLQIURPDQDGHTXDWHTXDOLW\VSXWXPVSHFLPHQRURWKHUUHVSLUDWRU\VSHFLPHQ$WWKH(27YLVLWUHVSLUDWRU\VSHFLPHQFXOWXUHVDQG*UDPVWDLQV
VKRXOGEHREWDLQHGRQO\IRUVXEMHFWVZKRDUH&OLQLFDO)DLOXUHVDQGUHTXLUHDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3VHH6HFWLRQ


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'


,1752'8&7,21

%DFNJURXQG
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD&$%3LVDOHDGLQJFDXVHRIPRUELGLW\DQG
PRUWDOLW\LQWKH8QLWHG6WDWHV86DQGWKURXJKRXWWKHZRUOG0DQGHOOHWDO)RXUWR
PLOOLRQFDVHVRI&$%3RFFXUSHU\HDULQWKH86UHVXOWLQJLQPLOOLRQSK\VLFLDQYLVLWV
KRVSLWDOL]DWLRQVDQGWHQVRIWKRXVDQGVRIGHDWKV7KHWRWDOFRVWRI&$%3WRWKHDQQXDO
86KHDOWKFDUHEXGJHWH[FHHGVELOOLRQLQDGMXVWHGGROODUV1LHGHUPDQHWDO
)XUWKHUPRUHWKHUHLVLQFUHDVLQJUHVLVWDQFHWRDQWLELRWLFVDPRQJFRPPRQSDWKRJHQVZLWKD
UHVXOWLQJFULWLFDOQHHGIRUQHZDQWLELRWLFV6SHOOEHUJHWDO%DFWHULDOUHVLVWDQFHWRWKH
PRVWIUHTXHQWO\SUHVFULEHGFXUUHQWO\DYDLODEOHDQWLELRWLFVKDVOLPLWHGWKHLUSRWHQWLDOWRWUHDW
LQIHFWLRQVZKLFKSUHYHQWVWKHLUXVHDVDILUVWOLQHHPSLULFPRQRWKHUDS\0HWKLFLOOLQUHVLVWDQW
6WDSK\ORFRFFXVDXUHXV056$DQGPXOWLGUXJUHVLVWDQW6WUHSWRFRFFXVSQHXPRQLDH0'563
LQWKHFRPPXQLW\KDYHSRVHGWUHDWPHQWFKDOOHQJHVEHFDXVHRIUHVLVWDQFHWRSHQLFLOOLQVUHVLVWDQFH
UDWHIRUERWKFHSKDORVSRULQVDQGUHVSHFWLYHO\IRUFHIWULD[RQHPDFUROLGHV
DQGUHVSHFWLYHO\IRUD]LWKURP\FLQHU\WKURP\FLQDQGTXLQRORQHVDQG
UHVSHFWLYHO\IRUOHYRIOR[DFLQLQ&$%3,QDGGLWLRQWKHJURZLQJFRQFHUQDERXW³FROODWHUDO
GDPDJH´DVVRFLDWHGZLWKXVHRITXLQRORQHDQGEHWDODFWDPFODVVDQWLELRWLFVIXUWKHUXQGHUVFRUHV
WKHQHHGIRUQHZDQWLELRWLFWUHDWPHQWRSWLRQVIRU&$%33DWHUVRQ'/)DLOXUHRIWKHUDS\
GXHWRUHVLVWDQFHZLOOFRQWLQXHWRFRQWULEXWHWRWKHPRUELGLW\DQGPRUWDOLW\RI&$%3DQG
WUHDWPHQWIDLOXUHVRIPLOGGLVHDVHZLOOUHVXOWLQLQFUHDVHGKRVSLWDOL]DWLRQVDQGFRQWULEXWHWR
LQFUHDVHGKHDOWKFDUHFRVWV
7KHLQYHVWLJDWLRQDOSURGXFW±37.KHUHDIWHUUHIHUUHGWRDVRPDGDF\FOLQH±LVWKHILUVW
PHPEHURIWKHDPLQRPHWK\OF\FOLQHFODVVRIDQWLELRWLFVZKLFKDUHVHPLV\QWKHWLFGHULYDWLYHVRI
WKHWHWUDF\FOLQHFODVV1RHOHWDO$VDFODVVWKHWHWUDF\FOLQHVKDYHEHHQLQXVHIRURYHU
\HDUV7KH\DUHZHOOWROHUDWHGDQGKDYHSURYHQHIIHFWLYHLQWKHWUHDWPHQWRIDYDULHW\RI
EDFWHULDOLQIHFWLRQV
2PDGDF\FOLQHLVYHU\DFWLYHLQYLWURDJDLQVWPRVW*UDPSRVLWLYHSDWKRJHQV,WDOVRH[KLELWV
DFWLYLW\DJDLQVWDW\SLFDOSDWKRJHQVHJ/HJLRQHOODVSHFLHVVSS&KODP\GRSKLODVSSDQGVRPH
DQDHURELFDQG*UDPQHJDWLYHSDWKRJHQV7KHGUXJLVDFWLYHDJDLQVWVWUDLQVH[SUHVVLQJERWK
PHFKDQLVPVRIWHWUDF\FOLQHUHVLVWDQFHDVZHOODVVWUDLQVWKDWDUHUHVLVWDQWWRFXUUHQWO\DYDLODEOH
DQWLELRWLFVLQFOXGLQJPHWKLFLOOLQYDQFRP\FLQHU\WKURP\FLQDQGFLSURIOR[DFLQ2PDGDF\FOLQH
,QYHVWLJDWRU¶V%URFKXUH>,%@3DUDWHN
2PDGDF\FOLQHKDVEHHQVKRZQWRKDYHLQYLWURDFWLYLW\DJDLQVWWKHPRVWFRPPRQW\SLFDODQG
DW\SLFDOFDXVHVRI&$%3LQFOXGLQJ6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXVLQIOXHQ]DH
6WDSK\ORFRFFXVDXUHXVDQG/HJLRQHOODSQHXPRSKLOD2PDGDF\FOLQHKDVSRWHQWDFWLYLW\DJDLQVW
HDFKRIWKHVHSDWKRJHQVDQGLVQRWDIIHFWHGE\WHWUDF\FOLQHSHQLFLOOLQPDFUROLGHLQGXFLEOHRU
FRQVWLWXWLYHULERVRPHPHWK\ODWLRQRUHIIOX[RUTXLQRORQHUHVLVWDQFHLQ6WUHSWRFRFFXV
SQHXPRQLDHQRUSHQLFLOOLQRUPDFUROLGHUHVLVWDQFHLQ+DHPRSKLOXVLQIOXHQ]DH2PDGDF\FOLQH
KDVSRWHQWDFWLYLW\DJDLQVWPHWKLFLOOLQVXVFHSWLEOH6WDSK\ORFRFFXVDXUHXV066$DQGLVHTXDOO\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

SRWHQWDJDLQVWPXOWLGUXJUHVLVWDQW056$,QDGGLWLRQRPDGDF\FOLQHKDVGHPRQVWUDWHGDFWLYLW\
DJDLQVW&KODP\GRSKLODSQHXPRQLDHXVLQJDPDFURSKDJHFXOWXUHV\VWHPDQGLVH[SHFWHGWREH
DFWLYHDJDLQVW0\FRSODVPDSQHXPRQLDHEDVHGRQPHFKDQLVPRIDFWLRQLQWUDFHOOXODUSHQHWUDWLRQ
DQGWKHDFWLYLW\RIWKHWHWUDF\FOLQHIDPLO\7KHLQYLWURDFWLYLW\RIRPDGDF\FOLQHZDVQRWDIIHFWHG
E\VHUXPRUOXQJVXUIDFWDQWDQLPSRUWDQWFKDUDFWHULVWLFWKDWLVFRQVLVWHQWZLWKSRWHQWLDOXWLOLW\LQ
LQIHFWLRQVLQYROYLQJWKHORZHUUHVSLUDWRU\WUDFW)XUWKHULWKDVEHHQVKRZQWREHHIIHFWLYHLQ
DQLPDOPRGHOVRIORZHUUHVSLUDWRU\WUDFWLQIHFWLRQVFDXVHGE\6WUHSWRFRFFXVSQHXPRQLDHDQG
+DHPRSKLOXVLQIOXHQ]DH,WLVH[SHFWHGWKDWRPDGDF\FOLQHZLOODFKLHYHOHYHOVLQWKHORZHU
UHVSLUDWRU\WUDFWFRPSDUDEOHWRUHODWHGWHWUDF\FOLQHVGR[\F\FOLQHDQGWLJHF\FOLQHZKLFKKDYH
EHHQXVHGWRVXFFHVVIXOO\WUHDWVXEMHFWVZLWK&$%3
2PDGDF\FOLQHKDVEHHQGHYHORSHGIRUERWKLQWUDYHQRXVLYDQGRUDOSRDGPLQLVWUDWLRQDQGKDV
EHHQZHOOFKDUDFWHUL]HGLQ3KDVHVWXGLHV,QDGGLWLRQRPDGDF\FOLQHKDVEHHQHYDOXDWHGLQD
UDQGRPL]HG3KDVHVDIHW\DQGHIILFDF\VWXG\RIVXEMHFWVZLWKFRPSOLFDWHGVNLQDQGVNLQ
VWUXFWXUHLQIHFWLRQVF666,DQGLQDVSRQVRUWHUPLQDWHGIRUDGPLQLVWUDWLYHUHDVRQVUDQGRPL]HG
3KDVHVWXG\WKDWHQUROOHGVXEMHFWVZLWKF666,:LWKLQWKHOLPLWVRIWKHVWXG\VL]HV
RPDGDF\FOLQHGHPRQVWUDWHGQXPHULFDOHIILFDF\VLPLODUWRDQHVWDEOLVKHGFRPSDUDWRUOLQH]ROLG
1RHOHWDO3DUDWHN
,QWKH3KDVHVWXGLHVVXEMHFWVZHUHH[SRVHGWRRPDGDF\FOLQHLYRUSRIRUPXODWLRQVDQG
ZHUHH[SRVHGWRSODFHER6LQJOHLYGRVHVXSWRPJDQGVLQJOHSRGRVHVXSWRPJKDYH
EHHQLQYHVWLJDWHG0XOWLSOHLYGRVHVRIPJRQFHGDLO\DQGPJRQFHGDLO\IRUXSWR
DQGFRQVHFXWLYHGD\VUHVSHFWLYHO\KDYHEHHQLQYHVWLJDWHG0XOWLSOHSRGRVHVRIPJRQFH
GDLO\DQGPJRQFHGDLO\IRUXSWRFRQVHFXWLYHGD\VKDYHDOVREHHQLQYHVWLJDWHG,QD
3KDVHVWXG\VXEMHFWVZLWKF666,ZHUHWUHDWHGZLWKRPDGDF\FOLQHQ RUOLQH]ROLG
Q IRUDPHDQRIDQGPD[LPXPRIGD\V,QWKHVSRQVRUWHUPLQDWHG3KDVHVWXG\
VXEMHFWVZLWKF666,ZHUHWUHDWHGZLWKRPDGDF\FOLQHQ RUOLQH]ROLGQ IRUD
PHDQRIDQGPD[LPXPRIGD\VIRURPDGDF\FOLQHDQGGD\VIRUOLQH]ROLG
,Q3KDVHVWXGLHVWKHUHZHUHQRGLVFRQWLQXDWLRQVGXHWRGUXJUHODWHGDGYHUVHHYHQWV$(VLQ
DQ\VXEMHFWZKRUHFHLYHGPXOWLSOHGRVHVRIRPDGDF\FOLQH$QLQFUHDVHGLQFLGHQFHRI
JDVWURLQWHVWLQDO*,$(VSDUWLFXODUO\QDXVHDZDVQRWHGLQHDUO\SRVWXGLHV
,QLYVWXGLHVLQKHDOWK\VXEMHFWVPRGHVWDQGUHYHUVLEOHDODQLQHDPLQRWUDQVIHUDVH$/7LQFUHDVHV
ZHUHVHHQPRVWQRWDEO\ZLWKLYGRVHVRIPJRUJUHDWHUîKLJKHUWKDQWKHWKHUDSHXWLFGRVH
RIPJLY7KHUHZHUHQRGLIIHUHQFHVLQ$/7FKDQJHVLQWKH3KDVHVWXG\FRPSDUHGWR
OLQH]ROLG7UDQVLHQWLQFUHDVHVLQKHDUWUDWHZHUHREVHUYHGIROORZLQJDGPLQLVWUDWLRQRIVLQJOHDQG
PXOWLSOHGRVHVRIRPDGDF\FOLQHZLWKDGRVHGHSHQGHQWPHDQLQFUHDVHRIXSWREHDWVSHU
PLQXWHESPFRPSDUHGWRSODFHERIRUWKHILUVWKRXUVDIWHUGRVLQJ7KHLQFUHDVHVLQKHDUWUDWH
ZHUHQRWUHSRUWHGDV$(VDQGQRWDVVRFLDWHGZLWKDQ\RWKHUFDUGLDFILQGLQJV7KHVHLQFUHDVHV
ZHUHREVHUYHGPRVWFRQVLVWHQWO\GXULQJWKHKRXUVLPPHGLDWHO\SRVWLQIXVLRQ%H\RQGKRXUV
DIWHUWKHVWDUWRIWKHLQIXVLRQKHDUWUDWHLQDOOVXEMHFWVLQFOXGLQJFRQWUROVZHUHFRPSDUDEOH$
OLVWLQJRIDOO3KDVH$(VLVSURYLGHGLQ$SSHQGL[,RIWKH,%3DUDWHN

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

,QWKH3KDVHVWXG\RPDGDF\FOLQHZDVZHOOWROHUDWHG7KHPRVWIUHTXHQWO\UHSRUWHG$(VZHUH
*,UHODWHGRFFXUULQJLQRIRPDGDF\FOLQHWUHDWHGDQGRI
OLQH]ROLGWUHDWHGVXEMHFWV1DXVHDDQGYRPLWLQJZHUHUHSRUWHGLQDQG
UHVSHFWLYHO\RIRPDGDF\FOLQHWUHDWHGVXEMHFWVSULPDULO\GXULQJSRWUHDWPHQWFRPSDUHGWR
DQGUHVSHFWLYHO\RIOLQH]ROLGWUHDWHGVXEMHFWV3UHPDWXUHGLVFRQWLQXDWLRQRI
WUHDWPHQWGXHWRDQ$(ZDVYHU\LQIUHTXHQWRFFXUULQJLQDQGRIRPDGDF\FOLQHDQG
OLQH]ROLGWUHDWHGVXEMHFWVUHVSHFWLYHO\
7KHUHZDVQRSDWWHUQRIDGYHUVHFKDQJHVLQODERUDWRU\VDIHW\SDUDPHWHUVDPRQJVXEMHFWVWUHDWHG
ZLWKRPDGDF\FOLQHRUOLQH]ROLGFKDQJHVLQRPDGDF\FOLQHWUHDWHGVXEMHFWVZHUHFRPSDUDEOHWR
WKRVHREVHUYHGZLWKOLQH]ROLG,QSDUWLFXODUWKHUHZDVQRFOLQLFDORUVWDWLVWLFDOGLIIHUHQFH
EHWZHHQWKHWUHDWPHQWJURXSVLQ$/7YDOXHVRULQRWKHUOLYHUIXQFWLRQWHVWV/)7V
$QLQFUHDVHLQPHDQKHDUWUDWHZDVREVHUYHGEXWWRDPXFKOHVVHUH[WHQWWKDQZKDWZDVREVHUYHG
LQ3KDVHVWXGLHV'XULQJWKHILUVWKRXUVIROORZLQJWKHVWDUWRIWKHILUVWLQIXVLRQRI
RPDGDF\FOLQHWKHUHZDVDPHDQLQFUHDVHLQKHDUWUDWHIURP%DVHOLQHRIESPIRURPDGDF\FOLQH
UDQJHIURPWRESPSHDNLQJDWKRXUVDVFRPSDUHGWRDVOLJKWGHFUHDVHRIESP
HIIHFWRQKHDUWUDWHIRUWKHOLQH]ROLGWUHDWPHQWDUPUDQJHIURPWRESPS 7KLV
HIIHFWZDVWUDQVLHQWDQGQR47SURORQJDWLRQZDVREVHUYHGFRQVLVWHQWZLWKWKHRPDGDF\FOLQH
WKRURXJKFRUUHFWHG47LQWHUYDO47FDQGKXPDQ(WKHUjJRJR5HODWHG*HQHK(5*VWXGLHV
7KUHHVXEMHFWVWUHDWHGZLWKRPDGDF\FOLQHKDG$(VRIWDFK\FDUGLDRWKHUVXEMHFWUHSRUWHG
SDOSLWDWLRQV$OORIWKHVH$(VZHUHPLOGLQLQWHQVLW\DOOZHUHDVVHVVHGDVHLWKHUXQUHODWHGRU
XQOLNHO\UHODWHGWRWHVWDUWLFOHDQGQRQHUHVXOWHGLQGLVFRQWLQXDWLRQRIVWXG\WUHDWPHQW7KUHHRI
WKHVH$(VRFFXUUHGGXULQJWKHILUVWZHHNRIWUHDWPHQW$(RFFXUUHGGD\VDIWHUFRPSOHWLQJ
WKHUDS\DQGZDVDVVRFLDWHGZLWKDQHZLQIHFWLRQDWDGLIIHUHQWVLWH
$3KDVHF666,VWXG\HQUROOHGVXEMHFWVSULRUWREHLQJGLVFRQWLQXHGGXHWRDFKDQJHLQWKH
)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$*XLGDQFHIRUWKHGHYHORSPHQWRIDQWLPLFURELDOVIRUDFXWH
EDFWHULDOVNLQDQGVNLQVWUXFWXUHLQIHFWLRQV$%666,7KHRYHUDOOLQFLGHQFHRIUHSRUWHG$(VLQ
WKLVVWXG\ZDVFRPSDUDEOHEHWZHHQWKHWUHDWPHQWJURXSV7KHPRVWFRPPRQO\UHSRUWHG$(V
IUHTXHQF\LQHLWKHUWUHDWPHQWJURXSZHUHQDXVHDRPDGDF\FOLQH
OLQH]ROLGKHDGDFKHRPDGDF\FOLQHOLQH]ROLGYRPLWLQJRPDGDF\FOLQH
OLQH]ROLGGLDUUKHDRPDGDF\FOLQHOLQH]ROLGDQGGL]]LQHVV
RPDGDF\FOLQHOLQH]ROLG&UHDWLQLQHSKRVSKRNLQDVH&.HOHYDWLRQZDVUHSRUWHGLQ
RIRPDGDF\FOLQHWUHDWHGVXEMHFWVFRPSDUHGWRIRUOLQH]ROLG$(VDVVRFLDWHGZLWK$/7
LQFUHDVHVZHUHUHSRUWHGLQOLQH]ROLGWUHDWHGVXEMHFWVFRPSDUHGWRRPDGDF\FOLQH
VXEMHFW6L[OLQH]ROLGVXEMHFWVUHSRUWHGUDVKFRPSDUHGWRVXEMHFWRQ
RPDGDF\FOLQH)RXUVXEMHFWVH[SHULHQFHGVHULRXVDGYHUVHHYHQWV6$(VRPDGDF\FOLQHDQG
OLQH]ROLG7KHRPDGDF\FOLQH6$(VFRQVLVWHGRIVPDOOERZHOREVWUXFWLRQODUJHOHIWSOHXUDO
HIIXVLRQDQGZRUVHQLQJGHSUHVVLRQ7KHOLQH]ROLG6$(FRQVLVWHGRIZRUVHQLQJULJKWKDQG
FHOOXOLWLV
)RUIXOOGHWDLOVRIVDIHW\ILQGLQJVLQQRQFOLQLFDODQGFOLQLFDOVWXGLHVVHHWKH,%3DUDWHN

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

2PDGDF\FOLQHKDVGHPRQVWUDWHGDFWLYLW\DJDLQVWWKHPRVWFRPPRQ&$%3SDWKRJHQVLQFOXGLQJ
LVRODWHVUHVLVWDQWWRVWDQGDUGVRIFDUH7KLVVWXG\LVLQWHQGHGWRHYDOXDWHWKHVDIHW\DQGHIILFDF\
RILYDQGSRRPDGDF\FOLQHDVFRPSDUHGWRLYDQGSRPR[LIOR[DFLQLQWKHWUHDWPHQWRIDGXOWVZLWK
&$%3
 678'<2%-(&7,9(6
 3ULPDU\2EMHFWLYH
7KHSULPDU\REMHFWLYHRIWKLVVWXG\LVWRGHPRQVWUDWHWKDWRPDGDF\FOLQHPJLYRQFHHYHU\
KRXUVTKIRUGRVHVIROORZHGE\PJLYPJSRRQFHHYHU\KRXUVTKLV
QRQLQIHULRUWRPR[LIOR[DFLQPJLYSRTKLQWKHWUHDWPHQWRIDGXOWVZLWK&$%3
 6HFRQGDU\2EMHFWLYHV
x 7RHYDOXDWHWKHVDIHW\RIRPDGDF\FOLQHLQWKHWUHDWPHQWRIDGXOWVXEMHFWVZLWK&$%3LQWKH
6DIHW\SRSXODWLRQ
x 7RHYDOXDWHWKH&OLQLFDO5HVSRQVHDFFRUGLQJWRWKHLGHQWLILHGFDXVDWLYHSDWKRJHQ
x 7RHYDOXDWHWKHSKDUPDFRNLQHWLFV3.RIRPDGDF\FOLQHLQDGXOWVXEMHFWVZLWK&$%3

 678'<'(6,*1
 'HVFULSWLRQ
7KLVLVDUDQGRPL]HGGRXEOHEOLQGDFWLYHFRPSDUDWRUFRQWUROOHG3KDVHVWXG\FRPSDULQJ
RPDGDF\FOLQHDQGPR[LIOR[DFLQIRUWKHWUHDWPHQWRIDGXOWVZLWK&$%37KHQXPEHURIVXEMHFWV
LQ3QHXPRQLD6HYHULW\,QGH[32575LVN&ODVV,,ZLOOEHOLPLWHGWRQRPRUHWKDQRI
UDQGRPL]HGVXEMHFWV6XEMHFWUDQGRPL]DWLRQZLOOEHVWUDWLILHGE\32575LVN&ODVV,,RU,,,,9
UHFHLSWRIDQDOORZHGDQWLEDFWHULDOWKHUDS\VHH$SSHQGL[LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQWDQGJHRJUDSKLFUHJLRQDVGHILQHGLQWKH,QWHUDFWLYH9RLFH5HVSRQVH
6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP,[56VSHFLILFDWLRQVDQGVWDWLVWLFDODQDO\VLVSODQ
6$3VHH6HFWLRQ$OOVXEMHFWVDUHH[SHFWHGWRSUHVHQWZLWK&$%3VHYHUHHQRXJKWR
UHTXLUHDPLQLPXPRIDWOHDVWGD\VRILYWUHDWPHQW
7KHVWXG\ZLOOFRQVLVWRISKDVHV6FUHHQLQJ'RXEOH%OLQG7UHDWPHQWDQG)ROORZXS$OO
6FUHHQLQJSURFHGXUHVVKRXOGEHSHUIRUPHGZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIGRXEOHEOLQG
WUHDWPHQWLIHOLJLEOH
 5DWLRQDOHRI6WXG\'HVLJQ
7KHVWXG\ZDVGHVLJQHGLQDFFRUGDQFHZLWKWKH)'$)'$DQG(XURSHDQ0HGLFLQHV
$JHQF\(0$(0$(0$JXLGDQFHRQGHYHORSLQJDQWLPLFURELDOGUXJVIRUWKH
WUHDWPHQWRI&$%3LQDGGLWLRQWRWKHJXLGHOLQHVFUHDWHGMRLQWO\E\WKH,QIHFWLRXV'LVHDVHV
6RFLHW\RI$PHULFD,'6$DQGWKH$PHULFDQ7KRUDFLF6RFLHW\0DQGHOOHWDO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 5DWLRQDOHIRU&KRLFHRI&RPSDUDWRU
*LYHQWKHZLGHDFFHSWDQFHRIIOXRURTXLQRORQHPRQRWKHUDS\DVDVDIHILUVWOLQHRSWLRQIRU
WUHDWLQJVXEMHFWVZLWK&$%3WKHFRPSDUDWRUGUXJIRUWKLVVWXG\ZDVVHOHFWHGWREHPR[LIOR[DFLQ
PJLYTKZLWKWKHRSWLRQWRWUDQVLWLRQWRPJSRTK0R[LIOR[DFLQSURYLGHVD
EURDGVSHFWUXPRIDFWLYLW\DJDLQVWUHVSLUDWRU\SDWKRJHQVWKDWDUHFDXVDWLYHDJHQWVRI&$%3
LQFOXGLQJW\SLFDOHJ6WUHSWRFRFFXVSQHXPRQLDHDQGDW\SLFDOHJ/HJLRQHOOD&KODP\GRSKLOD
DQG0\FRSODVPDVSSSDWKRJHQVZLWKDVLPLODUVSHFWUXPRIDFWLYLW\WRWKDWRIRPDGDF\FOLQH
/LNHRPDGDF\FOLQHPR[LIOR[DFLQKDVERWKLYDQGSRIRUPXODWLRQRSWLRQVDQGLVDGPLQLVWHUHG
RQFHGDLO\
 $SSUR[LPDWH'XUDWLRQRI6XEMHFW3DUWLFLSDWLRQ
6XEMHFWVZLOOSDUWLFLSDWHLQWKHVWXG\IRUDSSUR[LPDWHO\GD\V)ROORZLQJ6FUHHQLQJHOLJLEOH
VXEMHFWVZLOOEHUDQGRPO\DVVLJQHGWRUHFHLYHWRGD\VRIWUHDWPHQWZLWKRPDGDF\FOLQHRU
PR[LIOR[DFLQ$IROORZXSRIILFHYLVLWZLOORFFXUWRGD\VDIWHUWKHODVWGRVHRIWHVWDUWLFOH
DQGDQRWKHUIROORZXSWHOHSKRQHFRQWDFWZLOORFFXUDSSUR[LPDWHO\WRGD\VDIWHUWKHILUVW
GRVHRIWHVWDUWLFOH
 $SSUR[LPDWH'XUDWLRQRI6WXG\
7KLVVWXG\ZLOOEHFOLQLFDOO\FRPSOHWHLQDSSUR[LPDWHO\PRQWKV
 $SSUR[LPDWH1XPEHURI6XEMHFWV
$SSUR[LPDWHO\VXEMHFWVZLOOSDUWLFLSDWHLQWKLVVWXG\DWXSWRDSSUR[LPDWHO\VLWHV
 6(/(&7,212)68%-(&76
(DFKVXEMHFWPXVWSDUWLFLSDWHLQWKHLQIRUPHGFRQVHQWSURFHVVDQGVLJQDQGGDWHDQLQVWLWXWLRQDO
UHYLHZERDUG,5%RULQGHSHQGHQWHWKLFVFRPPLWWHH,(&RUUHVHDUFKHWKLFVERDUG5(%
DSSURYHGLQIRUPHGFRQVHQWIRUP,&)EHIRUHDQ\SURFHGXUHVVSHFLILHGLQWKLVSURWRFRODUH
SHUIRUPHG
 ,QFOXVLRQ&ULWHULD
7REHHOLJLEOHIRUUDQGRPL]DWLRQLQWKLVVWXG\DVXEMHFWPXVWIXOILOO$//RIWKHIROORZLQJ
FULWHULD
 :ULWWHQDQGVLJQHGLQIRUPHGFRQVHQWPXVWEHREWDLQHGEHIRUHDQ\SURWRFROVSHFLILF
DVVHVVPHQWLVSHUIRUPHG
 0DOHRUIHPDOHDJHG\HDUVRUROGHU
 +DVDWOHDVWRIWKHIROORZLQJV\PSWRPV
x &RXJK
x 3URGXFWLRQRISXUXOHQWVSXWXP

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x '\VSQHDVKRUWQHVVRIEUHDWK
x 3OHXULWLFFKHVWSDLQ
 +DVDWOHDVW7:2RIWKHIROORZLQJDEQRUPDOYLWDOVLJQV
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUSRRUUHFWDO
WHPSHUDWXUH!R&>R)@RUR&>R)@
x +\SRWHQVLRQZLWKV\VWROLFEORRGSUHVVXUH6%3PP+J
x +HDUWUDWH!ESP
x 5HVSLUDWRU\UDWH55!EUHDWKVPLQXWH
 +DVDWOHDVWFOLQLFDOVLJQRUODERUDWRU\ILQGLQJDVVRFLDWHGZLWK&$%3
x +\SR[HPLD3DUWLDOSUHVVXUHRIDUWHULDOR[\JHQ3D2PP+JE\DUWHULDOEORRG
JDV$%*
x 3K\VLFDOH[DPLQDWLRQILQGLQJVRISXOPRQDU\FRQVROLGDWLRQHJGXOOQHVVRQ
SHUFXVVLRQEURQFKLDOEUHDWKVRXQGVRUHJRSKRQ\
x $QHOHYDWHGWRWDOZKLWHEORRGFHOO:%&FRXQW!FHOOVPPRUOHXFRSHQLD
:%&FHOOVPPRUHOHYDWHGLPPDWXUHQHXWURSKLOV!EDQGIRUPV
UHJDUGOHVVRIWRWDOSHULSKHUDO:%&FRXQW
 5DGLRJUDSKLFDOO\FRQILUPHGSQHXPRQLDLHQHZRUSURJUHVVLYHSXOPRQDU\LQILOWUDWHVRQ
FKHVW;UD\&;5RUFKHVWFRPSXWHGWRPRJUDSK\&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDO
SQHXPRQLDZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
 +DYHGLVHDVHFDWHJRUL]HGDVEHLQJ32575LVN&ODVV,,,,,RU,9DW6FUHHQLQJ6HH
$SSHQGL[
 $UHH[SHFWHGWRUHTXLUHDPLQLPXPRIDWOHDVWGD\VRILYWKHUDS\IRUWKHLQLWLDOWUHDWPHQWRI
&$%3
 )HPDOHVPXVWKDYHDQHJDWLYHXULQHSUHJQDQF\WHVWDW6FUHHQLQJDQGDJUHHWRFRPSO\ZLWK
XVLQJDKLJKO\HIIHFWLYHIRUPRIELUWKFRQWUROHJDEVWLQHQFHSRFRQWUDFHSWLYHLQWUDXWHULQH
GHYLFH>,8'@EDUULHUFRQWUDFHSWLRQ>FRQGRP@WXEDOOLJDWLRQK\VWHUHFWRP\ELODWHUDO
RRSKRUHFWRP\RUYDVHFWRPL]HGSDUWQHUIURP6FUHHQLQJWKURXJKSRVWWKHUDS\HYDOXDWLRQ
37(0DOHVPXVWDJUHHWRXVHDKLJKO\HIIHFWLYHPHWKRGRIELUWKFRQWUROZLWKIHPDOH
SDUWQHUVDQGPXVWQRWGRQDWHVSHUPIURP6FUHHQLQJWKURXJK37(

 ([FOXVLRQ&ULWHULD
 +DVUHFHLYHGRUPRUHGRVHVRIDSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQW
ZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHDVXEMHFWZLOOEHFRQVLGHUHGWRKDYH
UHFHLYHGDSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQWLIWKHSDWKRJHQLGHQWLILHGDV
FDXVLQJLQIHFWLRQLVVKRZQWREHVXVFHSWLEOHWRWKHDQWLEDFWHULDOJLYHQRULQWKHFLUFXPVWDQFH
ZKHUHDSDWKRJHQLVQRWLGHQWLILHGLIWKHDQWLEDFWHULDODJHQWLVDSSURYHGIRUWUHDWPHQWRI
SQHXPRQLDRULVNQRZQWRKDYHDFWLYLW\DJDLQVWDQ\RIWKHOHDGLQJFDXVHVRI&$%3>HJ
6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXVLQIOXHQ]DH0RUD[HOODFDWDUUKDOLV
6WDSK\ORFRFFXVDXUHXV/HJLRQHOODSQHXPRSKLOD@(;&(37,216XEMHFWVPD\EHHOLJLEOH
GHVSLWHSULRUDQWLEDFWHULDOWKHUDS\LIWKH\KDYHEHHQWUHDWHGZLWKDVLQJOHGRVHRIDVKRUW
DFWLQJDQWLEDFWHULDOLHDQDQWLEDFWHULDOZKRVHVWDQGDUGGRVLQJUHJLPHQLVPRUHIUHTXHQWWKDQ
RQFHSHUGD\VHH$SSHQGL[

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 ,VNQRZQRUVXVSHFWHGWRKDYH&$%3FDXVHGE\DSDWKRJHQWKDWPD\EHUHVLVWDQWWRHLWKHUWHVW
DUWLFOHHJ.OHEVLHOODSQHXPRQLDH3VHXGRPRQDVDHUXJLQRVD3QHXPRF\VWLVMLURYHFL
REOLJDWHDQDHUREHVP\FREDFWHULDIXQJDOSDWKRJHQV
 6XVSHFWHGRUFRQILUPHGHPS\HPDDSDUDSQHXPRQLFSOHXUDOHIIXVLRQLVQRWDQH[FOXVLRQ
FULWHULDRUOXQJDEVFHVV
 6XEMHFWVZLWKNQRZQRUVXVSHFWHGKRVSLWDODFTXLUHGSQHXPRQLD+$3RU
KHDOWKFDUHDVVRFLDWHGSQHXPRQLD+&$3+$3LVGHILQHGDVSQHXPRQLDZLWKRQVHWRI
FOLQLFDOVLJQVDQGV\PSWRPVKRXUVDIWHUKRVSLWDOL]DWLRQLQDQDFXWHLQVXEMHFWKHDOWKFDUH
IDFLOLW\+&$3LVGHILQHGDVSQHXPRQLDDFTXLUHGLQDORQJWHUPFDUHRU
VXEDFXWHLQWHUPHGLDWHKHDOWKFDUHIDFLOLW\HJQXUVLQJKRPHRULQDVXEMHFWDGPLWWHGZLWK
SQHXPRQLDIROORZLQJDUHFHQWKRVSLWDOL]DWLRQGLVFKDUJHGZLWKLQGD\VRIFXUUHQW
DGPLVVLRQDQGSUHYLRXVO\KRVSLWDOL]HGIRUKRXUV
 +DVNQRZQRULVFOLQLFDOO\VXVSHFWHGWRKDYHRUPRUHRIWKHIROORZLQJSULRUWR
UDQGRPL]DWLRQ
x $/7RUDVSDUWDWHDPLQRWUDQVIHUDVH$67î8SSHU/LPLWRI1RUPDO8/1
x WRWDOELOLUXELQ!î8/1RU
x HYLGHQFHRIHQGVWDJHOLYHUGLVHDVHHJDVFLWHVKHSDWLFHQFHSKDORSDWK\
 +DVDNQRZQKLVWRU\RIKDYLQJH[SHULHQFHGXQVWDEOHFDUGLDFGLVHDVHHJXQVWDEOHDQJLQD
P\RFDUGLDOLQIDUFWLRQFRQJHVWLYHKHDUWIDLOXUHFDUGLDFDUUK\WKPLDHWFZLWKLQWKHPRQWKV
SULRUWR6FUHHQLQJ
 $UHGLDJQRVHGZLWKORQJ47FV\QGURPHXVHGUXJVRISRWHQWLDOSURDUUK\WKPLFRU47F
SURORQJLQJHIIHFWDQGRUSUHVHQWZLWKWDFK\DUUK\WKPLD
 5HTXLUHVDQ\IRUPRIGLDO\VLVHJKHPRGLDO\VLVSHULWRQHDOGLDO\VLV
 +LVWRU\RUHYLGHQFHRIVHYHUHUHQDOGLVHDVHRULVNQRZQWRKDYHDFDOFXODWHGFUHDWLQLQH
FOHDUDQFH&U&/P/PLQXWHXVLQJWKH&RFNFURIW*DXOWHTXDWLRQVHH$SSHQGL[
(YLGHQFHRIVLJQLILFDQWLPPXQRORJLFGLVHDVHGHWHUPLQHGE\DQ\RIWKHIROORZLQJ
x &XUUHQWRUDQWLFLSDWHGQHXWURSHQLDGHILQHGDVQHXWURSKLOVPP
x ,QIHFWLRQZLWKKXPDQLPPXQRGHILFLHQF\YLUXV+,9DQGDFOXVWHURIGLIIHUHQWLDWLRQ
&'FRXQWFHOOVPPRUDQRWKHU$FTXLUHG,PPXQH'HILFLHQF\6\QGURPH
$,'6GHILQLQJLOOQHVV
x 7KHUHFHLSWRIFDQFHUFKHPRWKHUDS\UDGLRWKHUDS\RUSRWHQWQRQFRUWLFRVWHURLG
LPPXQRVXSSUHVVDQWGUXJVHJF\FORVSRULQHD]DWKLRSULQHWDFUROLPXVLPPXQH
PRGXODWLQJPRQRFORQDODQWLERG\WKHUDS\HWFZLWKLQWKHSDVWPRQWKVRUWKH
UHFHLSWRIFRUWLFRVWHURLGVHTXLYDOHQWWRRUJUHDWHUWKDQPJRISUHGQLVRQHSHUGD\RU
IRUPRUHWKDQGD\VLQWKHSULRUGD\V
5HTXLUHVDFXWHSKDUPDFRORJLFLQWHUYHQWLRQWRVWDELOL]HEORRGSUHVVXUH%3DQGRUDGHTXDWH
WLVVXHSHUIXVLRQ25KDVHYLGHQFHRIVHSWLFVKRFNGHILQHGE\$//RIWKHIROORZLQJ
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUSRRUUHFWDO
WHPSHUDWXUH!&>)@RU&>)@
x +HDUWUDWH!EHDWVPLQXWH
x 55!EUHDWKVPLQXWH
x :%&!FHOOVPPRUFHOOVPPRU!LPPDWXUH>EDQG@IRUPV
UHJDUGOHVVRIWKHWRWDOSHULSKHUDO:%&FRXQW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x +\SRWHQVLRQZLWK6%3PP+JGHVSLWHDQLYIOXLGFKDOOHQJHRIFFNJRYHU
DPLQXWHSHULRG
x 3HUIXVLRQDEQRUPDOLWLHVWKDWPD\LQFOXGHEXWDUHQRWOLPLWHGWRODFWLFDFLGRVLVEORRG
ODFWDWHFRQFHQWUDWLRQPPRO/ROLJXULDRUDFXWHDOWHUDWLRQLQPHQWDOVWDWXV
.QRZQRUVXVSHFWHGSULPDU\RUPHWDVWDWLFQHRSODVWLFOXQJGLVHDVHDVSLUDWLRQSQHXPRQLD
F\VWLFILEURVLVEURQFKLHFWDVLVEURQFKLDOREVWUXFWLRQHJSRVWREVWUXFWLYHSQHXPRQLD
FKURQLFQHXURORJLFDOGLVRUGHUSUHYHQWLQJFOHDUDQFHRISXOPRQDU\VHFUHWLRQVRUVHYHUH
FKURQLFREVWUXFWLYHSXOPRQDU\GLVHDVH&23'
3UHJQDQWRUQXUVLQJEUHDVWIHHGLQJZRPHQ
+DVDKLVWRU\RIK\SHUVHQVLWLYLW\RUDOOHUJLFUHDFWLRQHJDQDSK\OD[LVXUWLFDULDRWKHU
VLJQLILFDQWUHDFWLRQWRDQ\WHWUDF\FOLQHHJPLQRF\FOLQHGR[\F\FOLQHRUWLJHF\FOLQHRUWR
DQ\IOXRURTXLQRORQHDQWLELRWLF
+DVDKLVWRU\RISVHXGRWXPRUFHUHEULRUSULRUZLWKLQZHHNVSULRUWR6FUHHQLQJRUSODQQHG
FRQFRPLWDQWXVHRILVRWUHWLQRLQ
+DVDKLVWRU\RIV\VWHPLFOXSXVHU\WKHPDWRVXVRUOXSXVOLNHV\QGURPH
+DVFXUUHQWHYLGHQFHRISDQFUHDWLWLV
+DVDKLVWRU\RIDFHQWUDOQHUYRXVV\VWHPGLVRUGHUWKDWPD\SUHGLVSRVHWRVHL]XUHVRUORZHU
WKHVHL]XUHWKUHVKROG
8VHRIRWKHULQYHVWLJDWLRQDOGUXJVZLWKLQKDOIOLYHVRUGD\VSULRUWR6FUHHQLQJ
ZKLFKHYHULVORQJHU
+DVSUHYLRXVO\EHHQWUHDWHGZLWKRPDGDF\FOLQHRUSUHYLRXVO\HQUROOHGLQWKLVVWXG\
$Q\SODQQHGPHGLFDOLQWHUYHQWLRQWKDWPLJKWLQWHUIHUHZLWKWKHDELOLW\WRFRPSO\ZLWKWKH
VWXG\UHTXLUHPHQWV
+DVDOLIHH[SHFWDQF\RIOHVVWKDQRUHTXDOWRPRQWKVRUDQ\FRQFRPLWDQWFRQGLWLRQWKDWLQ
WKHRSLQLRQRIWKHLQYHVWLJDWRULVOLNHO\WRLQWHUIHUHZLWKHYDOXDWLRQRIWKHUHVSRQVHRIWKH
LQIHFWLRQXQGHUVWXG\GHWHUPLQDWLRQRI$(VRUFRPSOHWLRQRIWKHH[SHFWHGFRXUVHRI
WUHDWPHQW

 6FUHHQ)DLOXUHV
6XEMHFWVZKRVLJQWKH,&)EXWZLWKGUDZRUDUHZLWKGUDZQIURPWKHVWXG\EHIRUHUDQGRP
DVVLJQPHQWWRDGRXEOHEOLQGWUHDWPHQWDUHGHILQHGDVVFUHHQIDLOXUHV$OOVFUHHQIDLOXUHVVKRXOG
EHUHFRUGHGRQWKHVXEMHFWPDVWHUOLVW/LPLWHGLQIRUPDWLRQLQFOXGLQJUHDVRQIRUVFUHHQIDLOXUH
ZLOOEHUHFRUGHGRQWKHHOHFWURQLFFDVHUHSRUWIRUPH&5)RU,[56V\VWHPIRUVFUHHQIDLOXUHV
 35,25$1'&21&20,7$1775($70(17
7UHDWPHQWVWKDWKDYHEHHQDGPLQLVWHUHGZLWKLQWKHGD\VSULRUWRWKHGDWHRILQIRUPHGFRQVHQW
RUGXULQJWKH6FUHHQLQJSHULRGZLOOEHUHFRUGHGLQWKHH&5)7KHLQYHVWLJDWRULVWRLQVWUXFWWKH
VXEMHFWWRQRWLI\WKHVWXG\VLWHDERXWDQ\QHZPHGLFDWLRQVKHVKHWDNHVDIWHUWKHVWDUWRIWKHWHVW
DUWLFOH$OOPHGLFDWLRQVDQGVLJQLILFDQWQRQGUXJWKHUDSLHVLQFOXGLQJSK\VLFDOWKHUDS\DQGEORRG
WUDQVIXVLRQVDGPLQLVWHUHGDIWHUWKHVXEMHFWVWDUWVWUHDWPHQWZLWKWHVWDUWLFOHPXVWEHUHFRUGHGDV
FRQFRPLWDQWPHGLFDWLRQVVLJQLILFDQWQRQGUXJWKHUDSLHVLQWKHH&5)

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 3HUPLWWHG7UHDWPHQW
$Q\FRQFRPLWDQWWUHDWPHQWWKDWLVQRWSURKLELWHGH[SOLFLWO\LQWKHSURWRFROLVSHUPLWWHG$VLQJOH
GRVHRIDVKRUWDFWLQJSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDODJHQWVHHOLVWLQ$SSHQGL[
DGPLQLVWHUHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHZLOOEHDOORZHGIRURU
OHVVRIUDQGRPL]HGVXEMHFWV6XEMHFWVUHTXLULQJDGGLWLRQDORUDOWHUQDWLYHDQWLEDFWHULDOWKHUDS\IRU
&$%3ZLOOEHMXGJHGDV&OLQLFDO)DLOXUHVDQGWHVWDUWLFOHZLOOEHGLVFRQWLQXHG)XUWKHUWUHDWPHQW
IRUWKHLULQIHFWLRQLVDWWKHGLVFUHWLRQRIWKHLQYHVWLJDWRURUWKHVXEMHFW¶VKHDOWKFDUHSURYLGHUDQG
ZLOOEHFRQVLGHUHGDVDFRQFRPLWDQWPHGLFDWLRQ
 3URKLELWHG7UHDWPHQW
7KHIROORZLQJWUHDWPHQWVDUHSURKLELWHG
$OOLQYHVWLJDWLRQDOPHGLFDWLRQVRUGHYLFHVXVHGGXULQJWKHGD\VSULRUWR6FUHHQLQJDUH
SURKLELWHG/RQJDFWLQJV\VWHPLFDQWLEDFWHULDODJHQWVSRWHQWLDOO\HIIHFWLYHIRU&$%3DUH
SURKLELWHGIRUKRXUVSULRUWRUDQGRPL]DWLRQDQGFRQFRPLWDQWO\VHHOLVWLQ$SSHQGL[
'XULQJSRWUHDWPHQWVXEMHFWVZLOOEHLQVWUXFWHGWRDYRLGWDNLQJDQWDFLGVDQGPXOWLYLWDPLQV
 3URKLELWHG&RQFRPLWDQW0HGLFDWLRQVWKDWPD\,QWHUDFWZLWK0R[LIOR[DFLQ
8VHRISURDUUK\WKPLFRU47FSURORQJLQJPHGLFDWLRQVLVSURKLELWHG)RURWKHUZDUQLQJV
SUHFDXWLRQVDQGGUXJLQWHUDFWLRQVIRUPR[LIOR[DFLQSOHDVHVHHWKHPRVWFXUUHQWYHUVLRQRIWKH
PR[LIOR[DFLQIXOOSUHVFULELQJLQIRUPDWLRQSURYLGHGXQGHUVHSDUDWHFRYHU
 352&('85(6
:ULWWHQVLJQHGDQGGDWHGLQIRUPHGFRQVHQWZLOOEHREWDLQHGEHIRUHDQ\VWXG\UHODWHGSURFHGXUHV
KDYHEHHQSHUIRUPHG8SRQVLJQLQJWKHLQIRUPHGFRQVHQWWKHVXEMHFWVKRXOGWKHQEHDVVLJQHGD
VWXG\VXEMHFWQXPEHU$(VPXVWEHUHFRUGHGIURPWKHWLPHWKH,&)LVVLJQHG6XEMHFWVZKR
KDYHEHHQSUHVFUHHQHGDQGGRQRWVLJQDQ,&)ZLOOQRWEHDVVLJQHGDVXEMHFWQXPEHU7KH
LQYHVWLJDWRUZLOOPDLQWDLQDVXEMHFWPDVWHUOLVWWRGRFXPHQWHYHU\VXEMHFWZKRKDVVLJQHGDQ,&)
$FRS\RIWKLVOLVWVKRXOGEHUHWDLQHGLQWKHLQYHVWLJDWRU¶VVWXG\ILOHV
 9LVLW6FKHGXOHDQG$VVHVVPHQWV
5HIHUWR678'<)/2:&+$57IRUWKHVWXG\SURFHGXUHVDQGWKHLUWLPHSRLQWV7KHUHDUH
SURWRFROGHILQHGSKDVHVRIWKHVWXG\6FUHHQLQJ'RXEOH%OLQG7UHDWPHQWDQG)ROORZXS7KH
VWXG\ZLOOKDYHWKHIROORZLQJSURWRFROGHILQHGHYDOXDWLRQV
x 9LVLWVZLOOEHFRQGXFWHGGDLO\RQVWXG\'D\VWKURXJK7KH'D\YLVLWLVRSWLRQDOIRU
VXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPDKRVSLWDO
VHWWLQJ$'D\YLVLWVKRXOGEHFRQGXFWHGIRUVXEMHFWVZLWKWUHDWPHQWH[WHQGLQJEH\RQG
GD\VXQOHVVWKLVYLVLWFRLQFLGHVZLWKWKH(QGRI7UHDWPHQW(27YLVLW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x (QGRI7UHDWPHQWWREHSHUIRUPHGRQWKHFDOHQGDUGD\RIRUZLWKLQGD\VIROORZLQJWKHODVW
GRVHRIDQ\WHVWDUWLFOH,IDVXEMHFWZLWKGUDZVSUHPDWXUHO\RUWHUPLQDWHVSDUWLFLSDWLRQLQWKH
VWXG\EHIRUHFRPSOHWLRQWKH(27YLVLWVKRXOGEHFRQGXFWHG
x 37(WREHSHUIRUPHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\
x )LQDO)ROORZXSDVVHVVPHQW6WXG\'D\WRDIWHUVWDUWRIILUVWLQIXVLRQRIWHVWDUWLFOH

6XEMHFWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWSUHPDWXUHO\VKRXOGKDYHWKH(27YLVLWDQGWKH
SURFHGXUHVOLVWHGIRUWKDWYLVLWLQWKH678'<)/2:&+$57D37(YLVLWDQGD)LQDO)ROORZXS
DVVHVVPHQWLISRVVLEOH7KHVLWHVKRXOGDOVRFROOHFWVXEMHFWVDIHW\LQIRUPDWLRQWKURXJKWKH)LQDO
)ROORZXSDVVHVVPHQW
 6FUHHQLQJ3KDVH
'XHWRWKHQDWXUHRIWKHGLVHDVHXQGHUVWXG\WKH6FUHHQLQJSHULRGVKRXOGEHFRPSOHWHGZLWKLQ
GD\KRXUSHULRG7KH6FUHHQLQJZLOOEHXVHGWRHVWDEOLVKVXEMHFWHOLJLELOLW\DQG%DVHOLQH
FKDUDFWHULVWLFVIRUHDFKVXEMHFW6XEMHFWVDUHHOLJLEOHIRU6FUHHQLQJLIWKH\SUHVHQWZLWK&$%3
)ROORZLQJWKHVLJQLQJRIDQ,&)VLWHSHUVRQQHOZLOOFROOHFWWKHIROORZLQJLQIRUPDWLRQ
x 'HPRJUDSKLFV
x 0HGLFDOVXUJLFDOKLVWRU\DQGFXUUHQWPHGLFDOFRQGLWLRQV
x 3K\VLFDOH[DPLQDWLRQ
x 9LWDOVLJQV
x 5HYLHZRILQFOXVLRQH[FOXVLRQFULWHULD
x /RFDODQG&HQWUDO/DERUDWRU\WHVWVKHPDWRORJ\FKHPLVWU\XULQDO\VLVSUHJQDQF\WHVWIRU
ZRPHQRQO\
x OHDGHOHFWURFDUGLRJUDP(&*
x &RQFRPLWDQWPHGLFDWLRQVSDVWGD\V
x $(VVLQFHWKHVLJQLQJRIWKH,&)
x $VVHVVPHQWRI&$%3V\PSWRPVHYHULW\FRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQ
G\VSQHD6HH$SSHQGL[IRUV\PSWRPVHYHULW\VFDOH
x 5DGLRORJLF&;5RU&7VFDQHYDOXDWLRQRISQHXPRQLD
x $%*DQG32575LVN&ODVV$VVHVVPHQW
x 0LFURELRORJLFDODVVHVVPHQWVEORRGFXOWXUHUHVSLUDWRU\FXOWXUH	*UDPVWDLQORFDOODEXULQH
DQWLJHQWHVWVDQGEORRGIRU&HQWUDO/DEWHVWLQJ


6XEMHFW'HPRJUDSKLFV2WKHU%DVHOLQH&KDUDFWHULVWLFV
6XEMHFWGHPRJUDSKLFDQG%DVHOLQHFKDUDFWHULVWLFGDWDWREHFROOHFWHGRQDOOVXEMHFWVLQFOXGHGDWH
RIELUWKJHQGHUUDFHHWKQLFLW\DQGFKLOGEHDULQJSRWHQWLDO0HGLFDOKLVWRU\FXUUHQWPHGLFDO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

FRQGLWLRQGDWDLQFOXGHVGDWDXQWLOWKHVLJQLQJRILQIRUPHGFRQVHQW:KHQHYHUSRVVLEOH
GLDJQRVHVDUHWREHUHFRUGHG
7KHLQYHVWLJDWRUZLOOSHUIRUPDFRPSUHKHQVLYHKLVWRU\DQGSK\VLFDOH[DPLQDWLRQDWWKH6FUHHQLQJ
HYDOXDWLRQZLWKSDUWLFXODUDWWHQWLRQWRLWHPVLQGLFDWHGEHORZ
 0HGLFDO+LVWRU\5HODWLQJWRWKH,QIHFWLRQ8QGHU6WXG\

x 3UHGLVSRVLQJIDFWRUVWKDWPD\DIIHFWOXQJIXQFWLRQHJSULRUOXQJLQIHFWLRQPLOGWRPRGHUDWH
&23'V\PSWRPDWLFDVWKPDZLWKZKHH]LQJKLVWRU\RIVPRNLQJFKURQLFFRXJKZLWKDQG
ZLWKRXWVSXWXPSURGXFWLRQHWF
x +LVWRU\RISQHXPRFRFFDOYDFFLQDWLRQHJ3QHXPRYD[3UHYQDU
x $OOV\VWHPLFDQWLPLFURELDOVIURPRQVHWRIWKHLQIHFWLRQZLOOEHUHFRUGHGXQGHUFRQFRPLWDQW
PHGLFDWLRQV


3K\VLFDO([DPLQDWLRQ
$W6FUHHQLQJWKHSK\VLFDOH[DPLQDWLRQZLOOLQFOXGHWKHH[DPLQDWLRQRIJHQHUDODSSHDUDQFHVNLQ
QHFNLQFOXGLQJWK\URLGH\HVHDUVQRVHWKURDWOXQJVKHDUWDEGRPHQEDFNO\PSKQRGHV
H[WUHPLWLHVYDVFXODUDQGQHXURORJLFDO,ILQGLFDWHGEDVHGRQPHGLFDOKLVWRU\DQGRUV\PSWRPV
UHFWDOH[WHUQDOJHQLWDOLDEUHDVWDQGSHOYLFH[DPVPD\EHSHUIRUPHG+HLJKWDQGERG\ZHLJKW
ZLOOEHPHDVXUHG
,QIRUPDWLRQIRUDOOSK\VLFDOH[DPLQDWLRQVPXVWEHLQFOXGHGLQWKHVRXUFHGRFXPHQWDWLRQDWWKH
VWXG\VLWH6LJQLILFDQWILQGLQJVWKDWDUHSUHVHQWSULRUWRWKHVWDUWRIWHVWDUWLFOHPXVWEHLQFOXGHG
LQWKHVXEMHFW¶VH&5)

$VVHVVPHQWRI&$%36\PSWRP6HYHULW\
7KHLQYHVWLJDWRUZLOOVSHFLILFDOO\DVVHVVWKHSUHVHQFHDQGVHYHULW\OHYHORIWKHVXEMHFW¶V
V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDRQDSRLQWVFDOH
DEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWVHH$SSHQGL[
DQGHQWHUWKHV\PSWRPVHYHULW\OHYHOLQWRWKHH&5)6XEMHFWVPXVWKDYHDWOHDVWRIWKHVH
V\PSWRPVRI&$%3WREHHOLJLEOHIRUUDQGRPL]DWLRQLQWKHVWXG\VHH6HFWLRQ

5DGLRORJLF(YDOXDWLRQRI3QHXPRQLD
$&;5RU&7VFDQZLOOEHREWDLQHGIRUDOOVXEMHFWVDW6FUHHQLQJZLWKLQKRXUVSULRUWRWKH
ILUVWGRVHRIWHVWDUWLFOH7KHVHVWXGLHVPD\EHREWDLQHGDVSDUWRIURXWLQHQRQVWXG\HYDOXDWLRQ
RIDVXEMHFWSUHVHQWLQJZLWKVLJQVDQGV\PSWRPVRI&$%3DQGWKHUHIRUHPD\EHSHUIRUPHGLQ
VRPHFLUFXPVWDQFHVEHIRUHLQIRUPHGFRQVHQWLVREWDLQHGIRUSDUWLFLSDWLRQLQWKLVVWXG\,ID&;5
RU&7VFDQLVREWDLQHGGXULQJWKHFRXUVHRIWKHUDS\RUGXULQJWKHSHULRGXSWRWKH)LQDO
)ROORZXSDVVHVVPHQWWKHUHVXOWVRIWKHVWXG\ZLOOEHFROOHFWHG5DGLRORJLFHYDOXDWLRQVZLOOEH
SHUIRUPHGORFDOO\DQGLQWHUSUHWHGE\DSSURSULDWHO\TXDOLILHGSHUVRQQHOZKRDUHFHUWLILHGRU

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

OLFHQVHGWRLQWHUSUHWFKHVWUDGLRJUDSKVDFFRUGLQJWRDSSOLFDEOHUHJLRQDOUHTXLUHPHQWVUHYLHZHG
E\WKHLQYHVWLJDWRURUTXDOLILHGSHUVRQQHODQGWKHFRQFOXVLRQVRIWKLVUHYLHZZLOOEHWKHEDVLVIRU
VXEMHFWLQFOXVLRQ7KHUHYLHZUHSRUWVKRXOGEHLQFOXGHGLQWKHVRXUFHGRFXPHQWV

32575LVN&ODVV
$OOVXEMHFWVZKRDUHEHLQJVFUHHQHGIRUWKHVWXG\ZLOOKDYHWKHLU32575LVN&ODVVDVVHVVHGDW
WKH6FUHHQLQJHYDOXDWLRQRQO\VHH$SSHQGL[$VSDUWRIWKH,QFOXVLRQ&ULWHULDWRWKLVVWXG\
DOOVXEMHFWVPXVWKDYHGLVHDVHFKDUDFWHUL]HGDV32575LVN&ODVVRI,,,,,RU,9DW
UDQGRPL]DWLRQ

8ULQDO\VLV
$XULQHGLSVWLFNZLOOEHSHUIRUPHGGXULQJ6FUHHQLQJ8ULQH:%&UHVXOWVZLOOEHUHFRUGHGRQWKH
H&5)$XULQHSUHJQDQF\WHVWZLOOEHSHUIRUPHGGXULQJ6FUHHQLQJIRUDOOZRPHQ8ULQHZLOO
DOVREHWHVWHGDW6FUHHQLQJIRUWKHSUHVHQFHRI/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXV
SQHXPRQLDHDQWLJHQV
 'RXEOHEOLQG7UHDWPHQW3KDVH

$VVHVVPHQWV:KLOHRQ7HVW$UWLFOH
7KHGRXEOHEOLQGWUHDWPHQWSHULRGLVXSWRGD\VLQGXUDWLRQ6XEMHFWVZKRPHWLQFOXVLRQ
FULWHULDDQGGLGQRWPHHWH[FOXVLRQFULWHULDZLOOEHUDQGRPO\DVVLJQHGWRDWUHDWPHQWJURXSDQG
VKRXOGUHFHLYHWKHLUILUVWGRVHRIWHVWDUWLFOH
7KHIROORZLQJDVVHVVPHQWVVHH678'<)/2:&+$57ZLOOEHGRQH
x 9LWDOVLJQV
x 3K\VLFDOH[DPLQDWLRQVZRUVHQLQJRIREVHUYDWLRQVVLQFHWKH6FUHHQLQJH[DPLQDWLRQZLOOEH
UHFRUGHGDV$(V
x $(V
x &RQFRPLWDQWWUHDWPHQWV
x &$%3V\PSWRPVHYHULW\VFDOHSHUIRUPHGE\WKHLQYHVWLJDWRU
x 0LFURELRORJLFDODVVHVVPHQWV
x (&*VKRXOGEHSHUIRUPHGMXVWSULRU>ZLWKLQPLQXWHV@DQGPLQXWHVDIWHUWKHVWDUWRI
WKHILUVWLQIXVLRQRIWKHILUVWDQGWKLUGGRVHVRIWHVWDUWLFOHDWWKH(27YLVLWDQGDVRWKHUZLVH
FOLQLFDOO\LQGLFDWHG
x %ORRGIRU&HQWUDO/DERUDWRU\DVVHVVPHQWVKHPDWRORJ\FKHPLVWU\SUHJQDQF\IRUZRPHQ
RQO\
x 7HVWDUWLFOHDGPLQLVWUDWLRQDQGDFFRXQWDELOLW\
x $VVHVVPHQWIRUSRVZLWFKRUQHHGWRFRQWLQXHWKHUDS\
,QYHVWLJDWRU¶VDVVHVVPHQWRIFOLQLFDOUHVSRQVH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 ,QWUDYHQRXV7UHDWPHQW3KDVH7HVW$UWLFOH

7KHLYWUHDWPHQWSKDVHPLQLPXPRIGD\VGRVHVZLOOIROORZDGRXEOHGXPP\GHVLJQZLWK
SODFHERLQIXVLRQVPDWFKHGWRDFWLYHRPDGDF\FOLQHDQGPR[LIOR[DFLQLQIXVLRQVDVVKRZQLQ
7DEOH,QIXVLRQVRIRPDGDF\FOLQHDQGPDWFKHGSODFHERZLOOEHDGPLQLVWHUHGFRQWLQXRXVO\RYHU
DSSUR[LPDWHO\PLQXWHV'XULQJWKHILUVWKRXUVRILYWUHDWPHQWVXEMHFWVRQWKH
PR[LIOR[DFLQWUHDWPHQWDUPZLOOUHFHLYHDSODFHERLQIXVLRQWRPDWFKWKHW KLQIXVLRQLQWKH
RPDGDF\FOLQHDUPDVVKRZQLQ7DEOH
,QIXVLRQVRIPR[LIOR[DFLQDQGPDWFKHGSODFHERZLOOEHDGPLQLVWHUHGFRQWLQXRXVO\RYHU
DSSUR[LPDWHO\PLQXWHV$OOLQIXVLRQVWDUWDQGVWRSWLPHVDUHWREHUHFRUGHGLQVRXUFH
GRFXPHQWVDQGRQWKHH&5)%HFDXVHWKHFRORURIWKHWHVWDUWLFOHDQGSODFHERLQIXVLRQVDUH
GLIIHUHQWDOOLQIXVLRQEDJVDQGLYWXELQJZLOOEHFRYHUHGZLWKPDWHULDOVSURYLGHGE\WKHVSRQVRU
DVGHVFULEHGLQWKH3KDUPDF\0DQXDOVRWKDWVXEMHFWVDQGEOLQGHGVWXG\SHUVRQQHOZLOOQRW
NQRZWKHLGHQWLW\RIWKHWHVWDUWLFOHEHLQJDGPLQLVWHUHG6XEMHFWVLQHDFKVWXG\DUPZLOOUHFHLYH
WKHVDPHLQIXVLRQYROXPHVZLWKWKHVDPHEOLQGHGDGPLQLVWUDWLRQLQVWUXFWLRQV$OOLYLQIXVLRQV
ZLOOEHDGPLQLVWHUHGE\TXDOLILHGEOLQGHGSHUVRQQHO,IJUDYLW\DGPLQLVWUDWLRQLVQRWWKHVWDQGDUG
RIFDUHWKHQDQLQIXVLRQSXPSPD\EHXVHG,IDQLQIXVLRQSXPSLVXVHGWKHQDSRWHQWLDOO\
XQEOLQGHGDGPLQLVWUDWRUZLOOEHUHTXLUHGVHH6HFWLRQ$OOVXEMHFWVVKRXOGUHPDLQLQD
KRVSLWDOVHWWLQJZKLOHRQLYWHVWDUWLFOHIRUDPLQLPXPRIGD\VGRVHV7KHUHDIWHUVXEMHFWV
VKRXOGQRWEHGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRFRPSOHWLRQRISURWRFROVSHFLILHGDVVHVVPHQWV
H[FHSWLQFLUFXPVWDQFHVZKHUHWKH3ULQFLSDO6LWH,QYHVWLJDWRUKDVFOHDUO\LGHQWLILHGWKDWVXIILFLHQW
UHVRXUFHVDQGSURFHVVHVDUHDYDLODEOHWRFRPSOHWHDOOVWXG\SURFHGXUHVDVGHILQHGLQWKHSURWRFRO
DQGWKHVSRQVRUKDVUHYLHZHGDQGDSSURYHGWKHSURFHVVIRURXWSDWLHQWLYWHVWDUWLFOH
DGPLQLVWUDWLRQ
7DEOH
7UHDWPHQW5HJLPHQVIRU,97HVW$UWLFOH
,QIXVLRQ5HJLPHQD
2PDGDF\FOLQH$UPEF
0R[LIOR[DFLQ$UPEF
W KG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W K
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
W KG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W KG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W KHWKHQTKG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7DEOH
7UHDWPHQW5HJLPHQVIRU,97HVW$UWLFOH
,QIXVLRQ5HJLPHQD
2PDGDF\FOLQH$UPEF
0R[LIOR[DFLQ$UPEF
W WLPH16 1RUPDOVDOLQHVRGLXPFKORULGHIRULQMHFWLRQTK HYHU\KRXUVTK HYHU\KRXUV
D
7KHVWDUWWLPHRIWKHILUVWLQIXVLRQLVGHVLJQDWHGWLPHW KIROORZHGE\TKGRVHVW KW K
DQGWKHQDOOVXEVHTXHQWGRVHVDUHTKIRUDPLQLPXPRIGD\VGRVHVRILYWUHDWPHQWWKURXJKW K
6HH6HFWLRQIRUDOORZHGDGMXVWPHQWVLQLYGRVLQJVFKHGXOHV
E
$OOP/LQIXVLRQVRIRPDGDF\FOLQHRUP/16SODFHERDUHDGPLQLVWHUHGFRQWLQXRXVO\RYHUPLQXWHV
DWOHDVWPLQXWHVDQGQRWPRUHWKDQPLQXWHV
F
$OOP/LQIXVLRQVRIPR[LIOR[DFLQRUP/16SODFHERDUHDGPLQLVWHUHGFRQWLQXRXVO\RYHU
DSSUR[LPDWHO\PLQXWHV
G
$WWKHVHWLPHSRLQWVDP/LQIXVLRQZLOOEHDGPLQLVWHUHGILUVWIROORZHGE\DP/LQIXVLRQ,WLV
LPSRUWDQWWRIROORZWKLVVHTXHQFHRIDGPLQLVWUDWLRQ
H
%HJLQQLQJZLWKWKHILIWKGRVHW KEDVHGRQWKHLQYHVWLJDWRUGHFLVLRQWKHWKHUDS\FRXOGEHLYRUVZLWFKWR
SRWKHUDS\

0DQDJHPHQWZKLOHRQ,97HVW$UWLFOH
:KLOHWKHVXEMHFWLVUHFHLYLQJLYWKHUDS\WKHLQYHVWLJDWRUZLOODVVHVVWKHVXEMHFWGDLO\DQGFKRRVH
21(RIWKHIROORZLQJEDVHGRQWKHRYHUDOOFOLQLFDODVVHVVPHQWRIWKHVXEMHFW
x FRQWLQXHLYWHVWDUWLFOH
x VZLWFKWRSRWHVWDUWLFOHDIWHUDPLQLPXPRIGD\V>GRVHV@RILYWKHUDS\
x GLVFRQWLQXHWHVWDUWLFOH±WKLVGHFLVLRQZLOOSURPSWWKH(27HYDOXDWLRQ

(DFKGDLO\GHFLVLRQLVWREHUHFRUGHGRQVRXUFHGRFXPHQWVDQGWKHLQIRUPDWLRQWUDQVIHUUHGWR
H&5)VE\EOLQGHGVWXG\VLWHSHUVRQQHO
1RWHWKHIROORZLQJ
x $WDOOWLPHVGXULQJWKHVWXG\WKHGHFLVLRQWRFRQWLQXHLYVZLWFKWRSRRUGLVFRQWLQXHWHVW
DUWLFOHLVPDGHEDVHGRQWKHFOLQLFDOMXGJPHQWRIWKHLQYHVWLJDWRU
x 7KHLQYHVWLJDWRUPD\XVHWKHFXOWXUHDQGVXVFHSWLELOLW\UHVXOWVIURPWKHORFDOPLFURELRORJ\
ODERUDWRU\WRKHOSJXLGHWKHUDS\KRZHYHUGHFLVLRQVWRFRQWLQXHRUGLVFRQWLQXHWHVWDUWLFOH
VKRXOGEHEDVHGRQFOLQLFDOUHVSRQVHUDWKHUWKDQVXVFHSWLELOLW\UHVXOWVDVRPDGDF\FOLQH
VXVFHSWLELOLW\WHVWLQJLVQRWDYDLODEOHDWWKHORFDOVLWH,IWKH&$%3LVFDXVHGE\D
PLFURRUJDQLVPWKDWLVQRWVXVFHSWLEOHWRPR[LIOR[DFLQLQYLWURWKHGHFLVLRQWRFRQWLQXHRU
GLVFRQWLQXHVWXG\WUHDWPHQWVKRXOGEHEDVHGRQWKHVXEMHFW
VFOLQLFDOFRXUVHDQGWKH
LQYHVWLJDWRU¶VFOLQLFDOMXGJPHQW7KHVHFDVHVVKRXOGEHGLVFXVVHGZLWKWKH0HGLFDO0RQLWRU
7KHUDWLRQDOHIRUWKLVGHFLVLRQVKRXOGEHUHFRUGHGLQVRXUFHGRFXPHQWV


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

6HOHFWLRQDQG7LPLQJRI,9'RVHIRU(DFK6XEMHFW
7RIDFLOLWDWHVWXG\HQUROOPHQWDWDOOWLPHVRIWKHGD\DQGSHUPLWVXEMHFWVWREH³VKLIWHG´WRDPRUH
SUDFWLFDOGRVLQJVFKHGXOHFRQVLVWHQWZLWKKRVSLWDOVFKHGXOHVSURYLVLRQLVPDGHIRUOLPLWHG
DGMXVWPHQWRIWKHGRVLQJLQWHUYDO6SHFLILFDOO\LQIXVLRQWLPHVPD\EHDGMXVWHGXSWRKRXUV
SHULQIXVLRQLQWHUYDOXQWLOWKHGHVLUHGDGPLQLVWUDWLRQVFKHGXOHLVDFKLHYHG
2QFHWKHGHVLUHGVWDUWRILQIXVLRQWLPHLVGHWHUPLQHGVXEVHTXHQWLQIXVLRQVVKRXOGEH³DQFKRUHG´
WRWKDWWLPH7KDWLVWKHUHDIWHUWKHVWDUWRILQIXVLRQVKRXOGEHZLWKLQKRXURIWKHVSHFLILHG
WDUJHWLQIXVLRQWLPH
 6ZLWFKWR2UDO7UHDWPHQW

7KHGHFLVLRQWRVZLWFKWRSRWUHDWPHQWVKRXOGEHPDGHE\WKHLQYHVWLJDWRU)RUDVXEMHFWWREH
FRQVLGHUHGFOLQLFDOO\VWDEOHDQGPHHWFULWHULDIRUWUDQVLWLRQWRDSRUHJLPHQWKH\PXVWKDYHWKH
IROORZLQJILQGLQJVQRWHGLQVRXUFHGRFXPHQWVDQGUHFRUGHGRQWKHH&5)
x 7HPSHUDWXUH&)PHDVXUHGRUDOO\RUUHFWDOO\
x +HDUWUDWHEHDWVPLQXWH
x 55EUHDWKVPLQXWH
x 6%3PP+J
x 2[\JHQVDWXUDWLRQDVPHDVXUHGE\SXOVHR[LPHWU\RU3D2PP+JE\$%*
x 1RZRUVHQLQJRI&$%3V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQG\VSQHD
FRPSDUHGWR6FUHHQLQJ
x 1RUPDOPHQWDOVWDWXV³DEVHQFHRIFRQIXVLRQ´RUSUHLOOQHVV%DVHOLQHIRUVXEMHFWVZKRGLG
QRWKDYHQRUPDOPHQWDOVWDWXVEHIRUHRQVHWRISQHXPRQLD
x $ELOLW\WRPDLQWDLQSRLQWDNH

6ZLWFKWRSRZLOO127EHSHUPLWWHGXQWLODIWHUWKHVXEMHFWKDVFRPSOHWHGDWOHDVWWKHILUVWGD\V
RILYWUHDWPHQWGRVHV
7KHGDWHDQGWLPHWKHLQYHVWLJDWRUFRQILUPHGWKHFULWHULDIRUWKHVXEMHFW¶VHOLJLELOLW\IRUSR
WUHDWPHQWZHUHPHWDQGPDGHWKHGHFLVLRQWRVZLWFKWRSRWUHDWPHQWZLOOEHUHFRUGHGRQVRXUFH
GRFXPHQWVDQGWKHLQIRUPDWLRQWUDQVIHUUHGWRH&5)VE\VWXG\VLWHSHUVRQQHO)RUVXEMHFWVWKDW
KDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRVWXG\'D\YLVLWV
PXVWEHFRQGXFWHGRQVWXG\'D\VDQGZKLOHDVWXG\'D\YLVLWLVRSWLRQDO
 2UDO7UHDWPHQW3KDVH7HVW$UWLFOH

7UHDWPHQWUHJLPHQVIRUSRGRVLQJDUHVKRZQLQ7DEOH:KHQVZLWFKLQJIURPLYWRSRWHVW
DUWLFOHWKHUHFRPPHQGHGLQWHUYDOEHWZHHQGRVHVZLOOEHPDLQWDLQHG7KHILUVWSRGRVHIRUERWK
RPDGDF\FOLQHDQGPR[LIOR[DFLQWUHDWPHQWDUPVVKRXOGEHJLYHQWRKRXUVDIWHUWKHODVWLY
GRVH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7KHSRWUHDWPHQWSKDVHZLOOHPSOR\DGRXEOHEOLQGGRXEOHGXPP\GHVLJQXVLQJRPDGDF\FOLQH
SODFHERFRPSDUDWRUWDEOHWVRIPDWFKLQJVL]HDQGVKDSHWRDFWLYHRPDGDF\FOLQHWDEOHWVDQG
PDWFKLQJRYHUHQFDSVXODWHGSODFHERDQGDFWLYHPR[LIOR[DFLQWDEOHWV
7RPDLQWDLQLQYHVWLJDWRUDQGVXEMHFWEOLQGLQJVXEMHFWVRQERWKDUPVZLOOUHFHLYHWDEOHWVDQG
RYHUHQFDSVXODWHGWDEOHWLQWKHPRUQLQJDVVKRZQLQ7DEOHEHORZ
7DEOH
7UHDWPHQW5HJLPHQVIRU2UDO7HVW$UWLFOH
7LPHRI'RVLQJ
2PDGDF\FOLQH$UP
0R[LIOR[DFLQ$UP
'RVLQJ&RQGLWLRQDE
0RUQLQJ
RQDZDNHQLQJD
7ZRPJWDEOHWVDQG
RYHUHQFDSVXODWHGSODFHER
WDEOHWUHVHPEOLQJPR[LIOR[DFLQ
2QHPJRYHUHQFDSVXODWHG
WDEOHWDQGSODFHERWDEOHWV
UHVHPEOLQJRPDGDF\FOLQH
WDEOHWV
)DVWLQJRYHUQLJKWQRIRRG
RUGULQNH[FHSWZDWHU
EHIRUHGRVLQJDIWHU
GRVLQJQRIRRGIRU
KRXUVQRGDLU\SURGXFWV
IRUKRXUV

D
$OOGRVHVRISRWHVWDUWLFOHVKRXOGEHWDNHQZLWKZDWHU
E
$OOVXEMHFWVZLOOEHLQVWUXFWHGWRDYRLGWDNLQJDQWDFLGVDQGPXOWLYLWDPLQVZKLOHWDNLQJSRWHVWDUWLFOH

:KHQVXEMHFWVDUHVZLWFKHGWRSRWKHUDS\VXEMHFWVZLOOEHJLYHQLQVWUXFWLRQVRQKRZWR
DGPLQLVWHUWKHSRWKHUDS\DVXEMHFWGLDU\WRUHFRUGGDWHVDQGWLPHVRISRWUHDWPHQWDQGDGD\
VXSSO\RISRWHVWDUWLFOH6WXG\SHUVRQQHOZLOOUHYLHZWKHGRVLQJGLDU\DQGWDEOHWFRXQWZLWKWKH
VXEMHFWZKHQWKHSRWKHUDS\LVILUVWGLVSHQVHGWRWKHVXEMHFWDQGDWVXEVHTXHQWYLVLWVXQWLOWKH
VXEMHFWKDVFRPSOHWHGWKHUDS\6WXG\SHUVRQQHOZLOOUHYLHZDQGUHFRUGZKLFKPHGLFDWLRQLV
WDNHQLQWKHH&5)
0DQDJHPHQWZKLOHRQ2UDO7HVW$UWLFOH
:KLOHWKHVXEMHFWLVUHFHLYLQJSRWKHUDS\WKHLQYHVWLJDWRUVKRXOGDVVHVVWKHVXEMHFWRQVWXG\'D\
DQGDQGFKRRVHRIWKHIROORZLQJDFWLRQV
x FRQWLQXHSRWHVWDUWLFOH
x GLVFRQWLQXHWHVWDUWLFOH±WKLVGHFLVLRQZLOOSURPSWWKH(27HYDOXDWLRQ

7KHGDWHWLPHDQGWKHGHFLVLRQRIWKHLQYHVWLJDWRUZLOOEHUHFRUGHGRQVRXUFHGRFXPHQWVDQGWKH
LQIRUPDWLRQWUDQVIHUUHGWRH&5)VE\VWXG\VLWHSHUVRQQHO
7KHLQYHVWLJDWRUPD\XVHWKHFXOWXUHDQGVXVFHSWLELOLW\UHVXOWVIURPWKHORFDOPLFURELRORJ\
ODERUDWRU\WRKHOSJXLGHWKHUDS\KRZHYHUGHFLVLRQVWRFRQWLQXHRUGLVFRQWLQXHWHVWDUWLFOHVKRXOG
EHEDVHGRQFOLQLFDOUHVSRQVHUDWKHUWKDQVXVFHSWLELOLW\UHVXOWVDVRPDGDF\FOLQHVXVFHSWLELOLW\
WHVWLQJLVQRWDYDLODEOHDWWKHORFDOVLWH,IWKH&$%3LVFDXVHGE\DPLFURRUJDQLVPWKDWLVQRW
VXVFHSWLEOHWRPR[LIOR[DFLQLQYLWURWKHGHFLVLRQWRFRQWLQXHRUGLVFRQWLQXHVWXG\WUHDWPHQW
VKRXOGEHEDVHGRQWKHVXEMHFW
VFOLQLFDOFRXUVHDQGWKHLQYHVWLJDWRU¶VFOLQLFDOMXGJPHQW7KHVH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

FDVHVVKRXOGEHGLVFXVVHGZLWKWKH0HGLFDO0RQLWRU7KHUDWLRQDOHIRUWKLVGHFLVLRQVKRXOGEH
UHFRUGHGLQWKHVRXUFHGRFXPHQWV

3HUPLWWHG'RVH$GMXVWPHQWVDQG,QWHUUXSWLRQVRI7HVW$UWLFOH
1RQH
 )ROORZXS3KDVH
6XEMHFWVZLOOEHHYDOXDWHGDWYLVLWVDIWHUWKHFRPSOHWLRQRIWUHDWPHQWDWWKH37(WRGD\V
DIWHUWKHODVWWUHDWPHQWGD\DQGDWD)LQDO)ROORZXSDVVHVVPHQWWRGD\VDIWHUWKHILUVWGRVH
RIWUHDWPHQWVHH678'<)/2:&+$577KH)LQDO)ROORZXSDVVHVVPHQWPD\EHFRQGXFWHG
YLDWHOHSKRQHFRQWDFWRUE\DQRWKHULQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUHFRQVLGHUHGWR
EH&OLQLFDO6XFFHVVHVDQGKDGQR$(VQRWHGDWRUDIWHUWKH37(YLVLW2WKHUZLVHWKLVDVVHVVPHQW
LVWREHSHUIRUPHGZLWKDQLQSHUVRQVWXG\YLVLW
 7RWDO9ROXPHRI%ORRG&ROOHFWHG
7KHWRWDOYROXPHRIEORRGFROOHFWHGIURPHDFKVXEMHFWIRUWKLVSURWRFROZLOOEHXSWR
DSSUR[LPDWHO\P/GHSHQGLQJRQWKHVXEMHFW¶VGXUDWLRQRIVWXG\SDUWLFLSDWLRQ
 7(67$57,&/($1'$'0,1,675$7,21
7HVWDUWLFOHZLOOEHVXSSOLHGE\3DUDWHN3KDUPD//&WKHVSRQVRU7HVWDUWLFOHZLOOEHODEHOHG
DFFRUGLQJWRUHJXODWLRQV
7KHWHVWDUWLFOHVKRXOGEHDGPLQLVWHUHGRQO\WRVXEMHFWVZKRKDYHSURYLGHGLQIRUPHGFRQVHQWDQG
ZKRPHHWDOORIWKHLQFOXVLRQFULWHULDDQGQRQHRIWKHH[FOXVLRQFULWHULD2QFHWKHWHVWDUWLFOHKDV
EHHQDVVLJQHGWRDVXEMHFWLWPXVWQRWEHUHDVVLJQHGWRDQRWKHUVXEMHFW
 7HVW$UWLFOH$GPLQLVWUDWLRQ
6XEMHFWVZLOOEHUDQGRPL]HGWRRIWKHIROORZLQJWUHDWPHQWDUPV
x ,QYHVWLJDWLRQDOWKHUDS\RPDGDF\FOLQHPJLYTKILUVWGRVHVIROORZHGE\PJLY
TKVWDUWLQJKRXUVDIWHUILUVWGRVHZLWKWKHRSWLRQWRVZLWFKWRPJWZRPJ
RPDGDF\FOLQHWDEOHWVDQGRYHUHQFDSVXODWHGSODFHERWDEOHWPDWFKLQJPR[LIOR[DFLQSR
TKDIWHUDWOHDVWGD\VGRVHVRILYWUHDWPHQW
x 5HIHUHQFHWKHUDS\PR[LIOR[DFLQPJLYTKZLWKDVLQJOHSODFHERLQIXVLRQWRPDWFK
WKHRPDGDF\FOLQHGRVLQJUHJLPHQKRXUVDIWHUWKHILUVWGRVHRQ'D\ZLWKWKHRSWLRQWR
VZLWFKWRPJRQHPJPR[LIOR[DFLQRYHUHQFDSVXODWHGWDEOHWDQGSODFHERWDEOHWV
PDWFKLQJRPDGDF\FOLQHWDEOHWVSRTKDIWHUDWOHDVWGD\VGRVHVRILYWUHDWPHQW

$OOVXEMHFWVVKRXOGUHFHLYHDWOHDVWGD\VDQGDWPRVWGD\VLYDQGSRFRPELQHGRIWHVW
DUWLFOHWKHUDS\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'


,GHQWLW\RIWKH,QYHVWLJDWLRQDO3URGXFW
7DEOH
,QWUDYHQRXV)RUPXODWLRQ
$FWLYHLQJUHGLHQW
2PDGDF\FOLQH
























7DEOH
2UDO)RUPXODWLRQ
$FWLYHLQJUHGLHQW
2PDGDF\FOLQH




















&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 ,QYHVWLJDWLRQDODQG&RPSDUDWRU7HVW$UWLFOH

,QYHVWLJDWLRQDO7HVW$UWLFOH2PDGDF\FOLQH
x PJLYTKIRUILUVWGRVHVIROORZHGE\PJLYTKVWDUWLQJKDIWHUILUVWGRVH
x PJSRTKDIWHUFRPSOHWLRQRIDWOHDVWGD\VGRVHVRILYWUHDWPHQWDWWKHGLVFUHWLRQ
RIWKHLQYHVWLJDWRUDQGPHHWLQJPLQLPXPFULWHULDIRUSRVZLWFKDVRXWOLQHGLQ
6HFWLRQ
x 7RWDOWUHDWPHQWGXUDWLRQRIWRGD\V


&RPSDUDWRU7HVW$UWLFOH0R[LIOR[DFLQ
x PJLYTKZLWKDVLQJOHSODFHERLQIXVLRQWRPDWFKWKHRPDGDF\FOLQHGRVLQJUHJLPHQ
KRXUVDIWHUWKHILUVWGRVHRQ'D\
x PJSRTKDIWHUFRPSOHWLRQRIDWOHDVWGD\VGRVHVRILYWUHDWPHQWDWWKHGLVFUHWLRQ
RIWKHLQYHVWLJDWRUDQGPHHWLQJPLQLPXPFULWHULDIRUSRVZLWFKDVRXWOLQHGLQ
6HFWLRQ
x 7RWDOWUHDWPHQWGXUDWLRQRIWRGD\V

 6XEMHFW&RPSOLDQFHZKLOHRQ2UDO7HVW$UWLFOH
,QWUDYHQRXVDGPLQLVWUDWLRQDQGFRPSOLDQFHZLOOEHPDQDJHGE\VWXG\SHUVRQQHOSULRUWR
VZLWFKLQJWRSRWHVWDUWLFOH6WXG\SHUVRQQHODWWKHVLWHVKRXOGPRQLWRUSRWHVWDUWLFOHFRPSOLDQFH
DWHDFKVWXG\YLVLWE\FRPSDULQJWKHUHWXUQHGWHVWDUWLFOHZLWKWKHGRVLQJLQIRUPDWLRQUHSRUWHGLQ
WKHVXEMHFWFKDUWV&RPSOLDQFHDQGDQ\XQUHVROYHGGLVFUHSDQFLHVZLOOEHGRFXPHQWHGLQWKH
VRXUFHGRFXPHQWDQGRQWKHGUXJLQYHQWRU\UHFRUG7KHWHVWDUWLFOHH&5)VKRXOGUHIOHFWWKH
UHFRQFLOHGGRVLQJLQIRUPDWLRQSURYLGHGE\WKHVXEMHFWFKDUWV
 6$)(7<
$Q\VXEMHFWZKRUHFHLYHVDWOHDVWGRVHRIWHVWDUWLFOHZLOOEHLQFOXGHGLQWKHHYDOXDWLRQIRU
VDIHW\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

6DIHW\LVDVVHVVHGE\WKHIROORZLQJPHDVXUHV
x 3K\VLFDOH[DPV
x $(VDQG6$(V
x 9LWDOVLJQV
x /DERUDWRU\DVVHVVPHQWV
x (&*
x 3UHJQDQF\DVVHVVPHQWV

3K\VLFDO([DPLQDWLRQV
$IWHU6FUHHQLQJDSK\VLFDOH[DPLQDWLRQVKRXOGEHFRQGXFWHGRQWKHVWXG\GD\VLQGLFDWHGLQWKH
678'<)/2:&+$57DQGDWWKH(27DQG37(YLVLWV$Q\DEQRUPDOLWLHVRUFKDQJHVLQ
LQWHQVLW\QRWHGGXULQJWKHUHYLHZRIWKHERG\V\VWHPVVKRXOGEHGRFXPHQWHGLQWKHVRXUFH
GRFXPHQWV,IDQHZFOLQLFDOO\VLJQLILFDQWILQGLQJRFFXUVLHQRWQRWHGDW6FUHHQLQJDIWHUWKH
6FUHHQLQJH[DPLWPXVWEHFDSWXUHGDVDQ$(,QDGGLWLRQUHVROXWLRQRIDQ\FOLQLFDOO\
VLJQLILFDQWDEQRUPDOILQGLQJVWKDWKDYHEHHQUHSRUWHGDVDQ$(ZLOOEHQRWHGLQWKHPHGLFDO
UHFRUGDQGWKH$(H&5)

9LWDO6LJQV
9LWDOVLJQVLQFOXGLQJWHPSHUDWXUH%3SXOVHKHDUWUDWHDQG55VKRXOGEHUHFRUGHGSULRUWRHDFK
LQIXVLRQZKLOHWKHVXEMHFWLVRQLYWUHDWPHQW7KHUHDIWHUYLWDOVLJQVVKRXOGEHUHFRUGHGDWDOO
YLVLWVZLWKWKHH[FHSWLRQRIWKH)LQDO)ROORZXSYLVLW
x ,QDGGLWLRQIRUWKHILUVWGRVHVRIWHVWDUWLFOHW KRXUVW KRXUVW KRXUVVHH
7DEOHKHDUWUDWHDQG%3VKRXOGEHUHFRUGHGDWWKHIROORZLQJWLPHVMXVWSULRUWRWKHILUVW
LQIXVLRQZLWKLQPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQDQGDJDLQKRXUV
DIWHUWKHVWDUWRIWKHILUVWLQIXVLRQ

$OOYLWDOVLJQVVKRXOGEHFDSWXUHGDIWHUPLQXWHVPLQXWHVRIUHVWZKLOHLQDQRQVWDQGLQJ
SRVLWLRQVXSLQHRUVHPLUHFXPEHQWKHDGRIEHGIURPWR6XEVHTXHQWYLWDOVLJQ
PHDVXUHPHQWVVKRXOGEHFDSWXUHGLQWKHVDPHQRQVWDQGLQJSRVLWLRQ
6\VWROLFDQGGLDVWROLF%3ZLOOEHPHDVXUHGXVLQJDQDXWRPDWHGYDOLGDWHGGHYLFHZLWKDQ
DSSURSULDWHO\VL]HGFXII
3XOVHZLOOEHPHDVXUHGXVLQJDQDXWRPDWHGYDOLGDWHGGHYLFHZKHQDYDLODEOH,IQRWDYDLODEOH
SXOVHZLOOEHPHDVXUHGPDQXDOO\
,QDGGLWLRQWRWKHDERYH%3DQGKHDUWUDWHPD\EHPHDVXUHGZKHQHYHUFOLQLFDOO\LQGLFDWHGDWWKH
GLVFUHWLRQRIWKHWUHDWLQJSK\VLFLDQ$Q\VXEMHFWZKRH[SHULHQFHVDQ$(RIQRQSOHXULWLFFDUGLDF
FKHVWSDLQSDOSLWDWLRQVRUWDFK\DUUK\WKPLDZKLOHRQVWXG\VKRXOGKDYHDQ(&*DQGDQ
HYDOXDWLRQE\WKHLQYHVWLJDWRUVHH6HFWLRQ

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7HPSHUDWXUHZLOOEHREWDLQHGXVLQJDQHOHFWURQLFUDSLGUHDGLQJGHYLFHZKHQHYHUSRVVLEOH
55ZLOOEHGHWHUPLQHGE\REVHUYDWLRQ
2QFHWKHVXEMHFWLVGLVFKDUJHGIURPWKHKRVSLWDOYLWDOVLJQVZLOOEHUHFRUGHGDWHDFKUHWXUQ
FOLQLFDOYLVLWE\EOLQGHGVWXG\SHUVRQQHO

/DERUDWRU\(YDOXDWLRQV
%ORRGVDPSOHVIRUKHPDWRORJ\FKHPLVWU\DQGFRDJXODWLRQSURWKURPELQWLPHRQO\VKRXOGEH
GUDZQDW6FUHHQLQJ'D\'D\'D\(27DQG37(VHH678'<)/2:&+$57$W
6FUHHQLQJRQO\VDPSOHZLOOEHDQDO\]HGDWDORFDOODERUDWRU\IRUFRQILUPDWLRQRIHOLJLELOLW\
FULWHULDDQGDVHFRQGVDPSOHZLOOEHVKLSSHGWRWKH&HQWUDO/DERUDWRU\IRUDQDO\VLV$WDOORWKHU
YLVLWVVDPSOHVVKRXOGEHVKLSSHGWRWKH&HQWUDO/DERUDWRU\IRUDQDO\VLV
7KH&HQWUDO/DERUDWRU\ZLOOEHXVHGIRUVDIHW\DQDO\VLVRIDOOVSHFLPHQVFROOHFWHG'HWDLOVRQWKH
FROOHFWLRQWXEHVDQGFRQWDLQHUVVKLSPHQWRIVDPSOHVDQGUHSRUWLQJRIUHVXOWVE\WKH&HQWUDO
/DERUDWRU\DUHSURYLGHGWRLQYHVWLJDWRUVLQWKH&HQWUDO/DERUDWRU\0DQXDO
%HFDXVHVXEMHFWHQUROOPHQWZLOOQRWSHUPLWXVLQJ&HQWUDO/DERUDWRU\UHVXOWVWRDVVHVVDVXEMHFW¶V
PHHWLQJLQFOXVLRQH[FOXVLRQFULWHULDLWLVH[SHFWHGWKDWORFDOODERUDWRU\WHVWLQJZLOOEHXVHGLQ
FLUFXPVWDQFHVZKHUHWKLVWHVWLQJLVQHHGHGWRDVVHVVDVXEMHFW¶V:%&FRXQWRUGLIIHUHQWLDOVHUXP
WUDQVDPLQDVHRUELOLUXELQOHYHOVVHUXPFUHDWLQLQHRUSUHJQDQF\WHVWLQJIRUZRPHQRQO\
 +HPDWRORJ\

7KHDQDO\WHVOLVWHGLQWKHWDEOHEHORZ7DEOHZLOOEHPHDVXUHGDWWKH&HQWUDO/DERUDWRU\
7DEOH
+HPDWRORJ\3DQHO
+HPDWRFULW
7RWDOUHGEORRGFHOOFRXQW
0HDQFHOOKHPRJORELQ
0HDQFHOOKHPRJORELQFRQFHQWUDWLRQ
0HDQFHOOYROXPH
:%&FRXQW
3ODWHOHWFRXQW
:KLWHEORRGFHOOGLIIHUHQWLDODVFHOOFRXQWV

1HXWURSKLOV

/\PSKRF\WHV

0RQRF\WHV

(RVLQRSKLOV

%DVRSKLOV

 &OLQLFDO&KHPLVWU\

7KHDQDO\WHVLQGLFDWHGLQWKHWDEOHEHORZ7DEOHEHORZZLOOEHPHDVXUHGDWWKH&HQWUDO
/DERUDWRU\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7DEOH
&OLQLFDO&KHPLVWU\3DQHO
%ORRGJOXFRVH
8UHD
&UHDWLQLQH
6RGLXP
3RWDVVLXP
&KORULGH
%LFDUERQDWH
$/7
$67
$3
7RWDOELOLUXELQ
7RWDOSURWHLQ
0DJQHVLXP
$OEXPLQ

/'+
&.
&.LVRHQ]\PHWHVWLQJDVUHTXLUHG
&DOFLXP
3KRVSKDWH
&KROHVWHURO
8ULF$FLG
**7
$P\ODVH
/LSDVH
$/7 DODQLQHDPLQRWUDQVIHUDVH$67 DVSDUWDWHDPLQRWUDQVIHUDVH$3 DONDOLQHSKRVSKDWDVH/'+ ODFWDWH
GHK\GURJHQDVH&. FUHDWLQHSKRVSKRNLQDVH**7 JDPPDJOXWDP\OWUDQVSHSWLGDVH
 2WKHUODERUDWRU\WHVWV

7DEOH
$GGLWLRQDO/DERUDWRU\7HVWV
&DWHJRU\
7HVW
1RWH
&RDJXODWLRQ
,15
3URWKURPELQWLPHRQO\
)HPDOHHQGRFULQRORJ\
ȕK&*IRUZRPHQRQO\
6HH6HFWLRQEHORZ'RQHERWKORFDOO\XULQH
DQGFHQWUDOO\VHUXP
,15 LQWHUQDWLRQDOQRUPDOL]HGUDWLRȕK&* EHWD±KXPDQFKRULRQLFJRQDGRWURSLQ

6DIHW\6WXGLHVWREH3HUIRUPHG/RFDOO\
 (OHFWURFDUGLRJUDP

$VWDQGDUGOHDG(&*VKRXOGEHREWDLQHGXVLQJHTXLSPHQWSURYLGHGE\WKHVSRQVRU7KH(&*
ZLOOEHREWDLQHGDIWHUWKHVXEMHFWKDVEHHQLQDVHPLUHFXPEHQWSRVLWLRQIRUDSSUR[LPDWHO\
PLQXWHVDWWKHIROORZLQJWLPHV
x -XVWSULRUZLWKLQPLQXWHVWRWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWGRVHRIWHVWDUWLFOH
W KRQ7DEOH
x PLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWGRVHRIWHVWDUWLFOH
x -XVWSULRUZLWKLQPLQXWHVWRWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHWKLUGGRVHRIWHVWDUWLFOH
W KRQ7DEOH
x PLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHWKLUGGRVHRIWHVWDUWLFOH
x $WWKH'D\YLVLW
x $WWKH(27YLVLW
x ,QDQ\FDVHLQZKLFKDVXEMHFWGHYHORSVDQ$(RIQRQSOHXULWLFFDUGLDFFKHVWSDLQ
SDOSLWDWLRQVWDFK\DUUK\WKPLDRUDVRWKHUZLVHFOLQLFDOO\LQGLFDWHGVHH6HFWLRQ


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

5HDGLQJDQGLQWHUSUHWDWLRQRIWKH(&*ZLOOEHSHUIRUPHGFHQWUDOO\DQGSURYLGHGWRWKH
LQYHVWLJDWRU7KHLQYHVWLJDWRULVUHVSRQVLEOHIRUUHYLHZLQJLQWHUSUHWDWLRQVDQGIRUUHWDLQLQJKDUG
FRSLHVRIWKHUHSRUWV
 3UHJQDQF\DQG$VVHVVPHQWVRI)HUWLOLW\

$OOZRPHQZLOOKDYHDXULQHSUHJQDQF\WHVWDWWKHVLWHDWWKH6FUHHQLQJYLVLW8ULQHSUHJQDQF\
WHVWNLWVZLOOEHSURYLGHGE\WKHVSRQVRUWKURXJKWKH&HQWUDO/DERUDWRU\,IDSRVLWLYHXULQH
SUHJQDQF\WHVWUHVXOWLVREWDLQHGDWWKHVLWHWKHZRPDQLVQRWWREHUDQGRPL]HG$VHUXPVDPSOH
IRUȕK&*WHVWLQJZLOOEHFROOHFWHGDWWKH6FUHHQLQJYLVLWDQGVHQWWRWKH&HQWUDO/DERUDWRU\IRU
FRQILUPDWLRQRIWKHXULQHSUHJQDQF\UHVXOWV6HUXPVDPSOHVIRUȕK&*WHVWLQJDWWKH&HQWUDO
/DERUDWRU\DOVRZLOOEHFROOHFWHGDW(27DQG37(,IDSRVLWLYHȕK&*UHVXOWLVUHSRUWHGE\WKH
&HQWUDO/DERUDWRU\DIWHUDZRPDQLVHQUROOHGWHVWDUWLFOHDGPLQLVWUDWLRQVKRXOGEHGLVFRQWLQXHG
VHH6HFWLRQ
 %ORRG&XOWXUHV

7ZRVHWVRIEORRGFXOWXUHVILUVWVHW DHURELFERWWOHDQDHURELFERWWOHVHFRQG
VHW DHURELFERWWOHVVKRXOGEHFROOHFWHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVW
DUWLFOH(DFKVHWRIEORRGFXOWXUHVVKRXOGEHFROOHFWHGE\GLUHFWYHQLSXQFWXUHIURPLQGHSHQGHQW
ERG\VLWHVPLQXWHVDSDUW,QWKHFLUFXPVWDQFHZKHUHEDFWHULDDUHLVRODWHGIURPEORRG
UHSHDWEORRGFXOWXUHVVKRXOGEHFROOHFWHGDWHDFKVXEVHTXHQWYLVLWRUPRUHIUHTXHQWO\LIFOLQLFDOO\
LQGLFDWHGXQWLOQHJDWLYHFXOWXUHVDUHREWDLQHG%ORRGFXOWXUHLVRODWHVVKRXOGEHVHQWWRWKH
&HQWUDO/DERUDWRU\VHH6HFWLRQ
 $GGLWLRQDO/RFDO/DERUDWRU\7HVWV

7KHLQYHVWLJDWRUPD\RUGHUDGGLWLRQDOORFDOODERUDWRU\WHVWVFRQVLVWHQWZLWKKLVKHUURXWLQH
VWDQGDUGRIFDUH
 $SSURSULDWHQHVVRI6DIHW\0HDVXUHPHQWV
7KHVDIHW\DVVHVVPHQWVVHOHFWHGDUHVWDQGDUGIRUWKLVLQGLFDWLRQDQGVXEMHFWSRSXODWLRQ
 ()),&$&<
 3ULPDU\DQG6HFRQGDU\(IILFDF\9DULDEOHV
,QRUGHUWRVDWLVI\GLIIHUHQWKHDOWKDXWKRULW\UHTXLUHPHQWVWKHSULPDU\YDULDEOHVZLOOEHWHVWHG
ZLWKUHVSRQVHHQGSRLQWV
x 6XFFHVVIXO(DUO\&OLQLFDO5HVSRQVHKRXUVDIWHUILUVWGRVHZLOOEHGHWHUPLQHG
SURJUDPPDWLFDOO\DQGGHILQHGDVVXUYLYDOZLWKLPSURYHPHQWLQDWOHDVWRIVXEMHFW
V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQG\VSQHDDVDVVHVVHGE\WKH
LQYHVWLJDWRUZLWKRXWGHWHULRUDWLRQLQDQ\RIWKHVHV\PSWRPV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x 6XFFHVVIXO,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(YLVLWGHILQHGDV
VXUYLYDODIWHUFRPSOHWLRQRIDWHVWDUWLFOHUHJLPHQZLWKUHVROXWLRQRIVLJQVDQGV\PSWRPV
RIWKHLQIHFWLRQWRWKHH[WHQWWKDWIXUWKHUDQWLEDFWHULDOWKHUDS\LVQRWQHFHVVDU\

7KH(DUO\&OLQLFDO5HVSRQVHHQGSRLQWZLOOEHWKHSULPDU\HIILFDF\RXWFRPHVXSSRUWLQJ
UHJLVWUDWLRQZLWKWKH)'$LQWKH86DQGWKLVZLOOEHWHVWHGLQWKHLQWHQWWRWUHDW,77DQDO\VLV
SRSXODWLRQ7KH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQWZLOOEHWKH
SULPDU\HIILFDF\RXWFRPHVXSSRUWLQJUHJLVWUDWLRQZLWKWKH(0$LQWKH(XURSHDQ8QLRQ(8DQG
ZLOOEHWHVWHGLQWKH,77DQGFOLQLFDOO\HYDOXDEOH&(SRSXODWLRQVFRSULPDU\HQGSRLQWV7KH
DQDO\VLVRIWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(DVWKHSULPDU\HIILFDF\
RXWFRPHZLOOEHGHWDLOHGLQDVHSDUDWH6$3IRUWKH(0$
6HFRQGDU\HIILFDF\YDULDEOHVZLOOLQFOXGH
x 5HVSRQVHFDWHJRU\IRU(DUO\&OLQLFDO5HVSRQVH
x &OLQLFDO5HVSRQVHFDWHJRU\IRU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW(27DQG
37(
x &OLQLFDO5HVSRQVHFDWHJRU\DFFRUGLQJWRWKHLGHQWLILHGFDXVDWLYHSDWKRJHQ

 .H\$VVHVVPHQWV
7KHIROORZLQJLVDOLVWRINH\DVVHVVPHQWVWKDWZLOOEHSHUIRUPHG
x $VVHVVPHQWRIVLJQVDQGV\PSWRPVRI&$%3E\WKHLQYHVWLJDWRU
x 0LFURELRORJLFDODVVHVVPHQWRIWKHLQIHFWLRQ
x $VVHVVPHQWRIFOLQLFDOUHVSRQVH

(DFKRIWKHNH\DVVHVVPHQWVLVGHVFULEHGLQIXUWKHUGHWDLOEHORZ

$VVHVVPHQWRI&$%36\PSWRP6HYHULW\
7KHDVVHVVPHQWRI&$%3V\PSWRPVREVHUYHGE\WKHLQYHVWLJDWRUVKRXOGEHFRQGXFWHGDWHYHU\
VFKHGXOHGHYDOXDWLRQZLWKWKHH[FHSWLRQRIWKH)LQDO)ROORZXSDVVHVVPHQWVHH678'<
)/2:&+$577KHLQYHVWLJDWRUZLOOVSHFLILFDOO\DVVHVVWKHVHYHULW\OHYHORIWKHVXEMHFW¶V
V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDRQDSRLQWVFDOH
DEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWVHH$SSHQGL[
DQGHQWHUWKHV\PSWRPVHYHULW\VFRUHVLQWRWKHH&5))RUVXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSR
WHVWDUWLFOHDQGGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRVWXG\'D\YLVLWVPXVWEHFRQGXFWHGRQ
VWXG\'D\VDQGZKLOHDVWXG\'D\YLVLWLVRSWLRQDO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'


0LFURELRORJLFDO$VVHVVPHQWV
 5HVSLUDWRU\&XOWXUHDQG*UDP6WDLQ

$WWKH6FUHHQLQJYLVLWDQDGHTXDWHTXDOLW\H[SHFWRUDWHGRULQGXFHGVSXWXPRURWKHUUHVSLUDWRU\
VSHFLPHQUHIOHFWLQJIOXLGIURPWKHORZHUUHVSLUDWRU\WUDFWHJUHVSLUDWRU\IOXLGREWDLQHGE\
EURQFKRDOYHRODUODYDJHRUEURQFKRVFRS\SOHXUDOIOXLGREWDLQHGE\WKRUDFHQWHVLVRUH[SHFWRUDWHG
RULQGXFHGVSXWXPPHHWLQJDGHTXDF\FULWHULDVKRXOGEHFROOHFWHGDQGVXEPLWWHGWRWKHORFDO
PLFURELRORJ\ODERUDWRU\IRU*UDPVWDLQDQGFXOWXUHVHH678'<)/2:&+$577KHGDWH
WLPHDQGW\SHRIVSHFLPHQVXEPLWWHGZLOOEHUHFRUGHGRQVRXUFHGRFXPHQWVDWWKHORFDO
ODERUDWRU\7KHVHVSHFLPHQVPD\EHREWDLQHGDVSDUWRIURXWLQHQRQVWXG\HYDOXDWLRQRID
VXEMHFWEHLQJHYDOXDWHGIRU&$%3DQGWKHUHIRUHFRXOGEHREWDLQHGSULRUWRREWDLQLQJLQIRUPHG
FRQVHQW
$QDGHTXDWHTXDOLW\VSXWXPVSHFLPHQZLOOEHGHILQHGDVKDYLQJWKHIROORZLQJILQGLQJVDV
UHSRUWHGE\WKHORFDOODERUDWRU\
 6TXDPRXVHSLWKHOLDOFHOOVORZSRZHUILHOGOSILHî
 !3RO\PRUSKRQXFOHDUFHOOVOSILHî

$GHTXDWHTXDOLW\VSXWXPVSHFLPHQVDQGRWKHU6FUHHQLQJUHVSLUDWRU\VSHFLPHQVIRUFXOWXUH
VKRXOGEHREWDLQHGSULRUWRILUVWGRVHRIWHVWDUWLFOH,QWKHHYHQWWKDWDVSXWXPVSHFLPHQLV
GHWHUPLQHGWREHLQDGHTXDWHRUFDQQRWEHREWDLQHGSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHD
VSHFLPHQVKRXOGEHREWDLQHGXSWRKRXUVDIWHUILUVWGRVHRIWHVWDUWLFOH$VWKHLQIHFWLRQ
UHVSRQGVWRWKHUDS\REWDLQLQJUHSHDWHGVSHFLPHQVIRUFXOWXUHRUH[DPLQDWLRQPD\QRWEH
FOLQLFDOO\DSSURSULDWHDQGRUWKHUHPD\EHQRPDWHULDOIRUFXOWXUH
$OOUHVSLUDWRU\DQGEORRGVSHFLPHQVVXEPLWWHGWRWKHORFDOODERUDWRU\DUHWREHSURFHVVHGIRUD
*UDPVWDLQRIWKHVSHFLPHQDQGIRUDHURELFFXOWXUH/DERUDWRU\UHSRUWVRQ*UDPVWDLQVVKRXOG
LQFOXGHDVHPLTXDQWLWDWLYHGHVFULSWLRQRIWKHQXPEHURISRO\PRUSKRQXFOHDUOHXNRF\WHVSHUORZ
SRZHUILHOGLHîDQGDGHVFULSWLRQRIEDFWHULDVHHQ)RU*UDPVWDLQVRIUHVSLUDWRU\
VSHFLPHQVDVHPLTXDQWLWDWLYHGHVFULSWLRQRIWKHQXPEHURIVTXDPRXVHSLWKHOLDOFHOOVSHUORZ
SRZHUILHOGLHîVKRXOGDOVREHLQFOXGHG
&XOWXUHUHVXOWVDUHWRLQFOXGHLGHQWLILFDWLRQRIDOOSDWKRJHQVWRWKHOHYHORIJHQXVDQGVSHFLHV
6XVFHSWLELOLW\WHVWLQJIRUPR[LIOR[DFLQRURWKHUIOXRURTXLQRORQHVFDQEHSHUIRUPHGORFDOO\
XVLQJDVWDQGDUGPHWKRGFKRVHQE\WKHODERUDWRU\5HVXOWVRIWKLVWHVWLQJFDQEHXVHGE\
LQYHVWLJDWRUVDORQJZLWKFOLQLFDOILQGLQJVWRKHOSJXLGHWKHUDS\
$OOLVRODWHVLGHQWLILHGE\WKHORFDOODERUDWRU\IURPH[SHFWRUDWHGRULQGXFHGVSXWXPVSHFLPHQV
PHHWLQJWKHFULWHULDWKDWGHILQHWKHVSHFLPHQDVEHLQJRIDGHTXDWHTXDOLW\DQGRUWKDWDUH
LVRODWHGIURPUHVSLUDWRU\VSHFLPHQVRUEORRGDQGDUHSRWHQWLDOSDWKRJHQVDVGHILQHGLQWKH
&OLQLFDO0LFURELRORJ\/DERUDWRU\0DQXDOZLOOEHVXEPLWWHGWRWKH&HQWUDO/DERUDWRU\IRU
YHULILFDWLRQRIJHQXVDQGVSHFLHVDQGIRUVWDQGDUGL]HGPLQLPXPLQKLELWRU\FRQFHQWUDWLRQ0,&
WHVWLQJSHUIRUPHGIRURPDGDF\FOLQHPR[LIOR[DFLQDQGDSDQHORIFXUUHQWO\DSSURYHGDQWLELRWLFV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

,QWKHHYHQWWKDWORFDOODERUDWRU\JHQXVDQGVSHFLHVLGHQWLILFDWLRQDUHQRWFRQVLVWHQWZLWK&HQWUDO
/DERUDWRU\UHVXOWVDEDFNXSLVRODWHVKRXOGEHVHQWWRWKH&HQWUDO/DERUDWRU\
,QDGGLWLRQ*UDPVWDLQHGVOLGHVRIVSHFLPHQVSDUWLFXODUO\WKRVHRIVSXWXPVDPSOHVZLOOEH
VXEPLWWHGWRWKH&HQWUDO/DERUDWRU\,ILWLVQHFHVVDU\EDVHGRQORFDOODERUDWRU\UHTXLUHPHQWVD
GXSOLFDWHVOLGHRIWKHSULPDU\VSHFLPHQFDQEHSUHSDUHGIRUWKHSXUSRVHVRIUHWDLQLQJDWWKH
ORFDOODERUDWRU\
'HWDLOVFRQFHUQLQJ*UDPVWDLQVDQGFXOWXUHVZLOOEHSURYLGHGLQWKH&OLQLFDO0LFURELRORJ\
/DERUDWRU\0DQXDO
 8ULQHIRU/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDH$QWLJHQ6FUHHQLQJ

$WWKH6FUHHQLQJYLVLWDQGDWWKH37(YLVLWXULQHZLOOEHFROOHFWHGWRWHVWIRUWKHSUHVHQFHRI
/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDHDQWLJHQV7HVWLQJZLOOEHSHUIRUPHGDW
WKHORFDOODERUDWRU\XVLQJNLWVVXSSOLHGE\WKHVSRQVRU
 6HURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHDQG&KODP\GRSKLOD

SQHXPRQLDH7LWHUV
$WWKH6FUHHQLQJYLVLWDQGDWWKH37(YLVLWEORRGVDPSOHVZLOOEHFROOHFWHGWRFRQGXFWVHURORJ\
IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHDQG&KODP\GRSKLODSQHXPRQLDHE\WKH
&HQWUDO/DERUDWRU\

$VVHVVPHQWRI&OLQLFDO2XWFRPH
$VVHVVPHQWRIFOLQLFDORXWFRPHZLOORFFXUDW(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW
SURJUDPPDWLFDOO\(27DQG37(DVGHVFULEHGEHORZ
 (YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DWWKH(DUO\&OLQLFDO5HVSRQVH$VVHVVPHQW

7KHIRUPDOGHWHUPLQDWLRQRIWKHUHVSRQVHWRWKHUDS\DWWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW
WRKRXUVDIWHUDGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOHZLOOEHGRQH
SURJUDPPDWLFDOO\XVLQJWKHLQYHVWLJDWRU¶VDVVHVVPHQWRIWKHVXEMHFW¶VV\PSWRPVDVVRFLDWHGZLWK
&$%3HQWHUHGLQWRWKHH&5)7KHLQYHVWLJDWRULVQRWUHVSRQVLEOHIRUFDWHJRUL]LQJVXEMHFWVDV
&OLQLFDO6XFFHVV)DLOXUHRU,QGHWHUPLQDWHDWWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW7KH
VHYHULW\RIWKHVXEMHFW&$%3V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQG
G\VSQHDZLOOEHHYDOXDWHGRQDSRLQWVFDOHDEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU
,QYHVWLJDWRU$VVHVVPHQWVHH$SSHQGL[$&$%3VXEMHFWV\PSWRPVHYHULW\DVVHVVPHQW
VKRXOGEHFRPSOHWHGDWHYHU\VFKHGXOHGHYDOXDWLRQZLWKWKHH[FHSWLRQRIWKH)LQDO)ROORZXS
DVVHVVPHQWVHH6HFWLRQDQG678'<)/2:&+$57)RUVXEMHFWVWKDWKDYHEHHQ
VZLWFKHGWRSRWHVWDUWLFOHDQGGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRVWXG\'D\YLVLWVPXVWEH
FRQGXFWHGRQVWXG\'D\VDQGZKLOHDVWXG\'D\YLVLWLVRSWLRQDO
&OLQLFDO6XFFHVVDWWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQWZLOOEHGHILQHGDVVXUYLYDOZLWK
LPSURYHPHQWRIDWOHDVWOHYHOLHVHYHUHWRPRGHUDWHPRGHUDWHWRPLOGPLOGWRDEVHQW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

FRPSDUHGWR6FUHHQLQJLQ&$%3V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQ
DQGG\VSQHDZLWKQRZRUVHQLQJE\DWOHDVWOHYHOLQWKHRWKHULQFOXVLRQ&$%3V\PSWRPV,Q
RUGHUIRUWKHVXEMHFWWREHFRQVLGHUHGD&OLQLFDO6XFFHVVWKHVXEMHFWPD\QRWPHHWDQ\FULWHULD
IRU&OLQLFDO)DLOXUHRU,QGHWHUPLQDWH(DUO\&OLQLFDO5HVSRQVH
&OLQLFDO)DLOXUHGHILQHGDVPHHWLQJDQ\RIWKHIROORZLQJFULWHULD
x 7KHUHLVQRLPSURYHPHQWE\DWOHDVWOHYHOLHVHYHUHWRPRGHUDWHPRGHUDWHWRPLOGPLOGWR
DEVHQWFRPSDUHGWR6FUHHQLQJLQ&$%3V\PSWRPV
x $Q\RIWKH&$%3V\PSWRPVLVZRUVHE\DWOHDVWOHYHOFRPSDUHGWR6FUHHQLQJ
x 7KHVXEMHFWUHTXLUHVDOWHUQDWLYHUHVFXHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWRWKH(DUO\
&OLQLFDO5HVSRQVHDVVHVVPHQWUHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZ
V\PSWRPVDWWULEXWDEOHWR&$%3RUEGHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI&$%3
HJHPS\HPDOXQJDEVFHVV
x 7KHVXEMHFWLVUHFHLYLQJDQWLEDFWHULDOWKHUDS\WKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHU
VWXG\IRUDGLIIHUHQWLQIHFWLRQIURPWKHXQGHUVWXG\
x 'LVFRQWLQXHGVWXG\WKHUDS\GXHWRDQ$(SULRUWR(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW
x 'HDWKSULRUWRWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
x 6XEMHFWVZHUHQRWVHHQIRUWKHHYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUUHDVRQVSHFLI\
x 2WKHUVSHFLILHGUHDVRQ

 &OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW(27

(27DVVHVVPHQWVVKRXOGEHSHUIRUPHGRQWKHFDOHQGDUGD\RIRUZLWKLQGD\VIROORZLQJWKHODVW
GRVHRIDQ\WHVWDUWLFOH,IDVXEMHFWZLWKGUDZVSUHPDWXUHO\RUWHUPLQDWHVSDUWLFLSDWLRQLQWKH
VWXG\SULRUWRFRPSOHWLRQRIWKHSODQQHGDQWLELRWLFWKHUDS\WKH(27YLVLWVKRXOGEHFRQGXFWHG
7KHLQYHVWLJDWRUZLOOGHWHUPLQHZKHWKHURUQRWWKHVXEMHFWPHHWVWKHFULWHULDRIRIWKHIROORZLQJ
FOLQLFDORXWFRPHV
&OLQLFDO6XFFHVVWKHVXEMHFWLVDOLYHDQGWKHLQIHFWLRQLVVXIILFLHQWO\UHVROYHGVXFKWKDWIXUWKHU
DQWLEDFWHULDOWKHUDS\LVQRWQHHGHG7KHVHVXEMHFWVPD\KDYHVRPHUHVLGXDOILQGLQJVUHODWHGWR
LQIHFWLRQLHFRXJKUHTXLULQJDQFLOODU\LHQRQDQWLELRWLFWUHDWPHQWHJH[SHFWRUDQW,QRUGHU
IRUWKHVXEMHFWWREHFRQVLGHUHGD&OLQLFDO6XFFHVVDW(27WKHVXEMHFWPD\QRWPHHWDQ\FULWHULD
IRU&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHDW(27
&OLQLFDO)DLOXUHWKHVXEMHFWUHTXLUHVDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWR(27
UHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVWR&$%3RUEGHYHORSPHQW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

RILQIHFWLRXVFRPSOLFDWLRQVRI&$%3HJHPS\HPDOXQJDEVFHVVRUFVXEMHFWGHYHORSHGDQ
$(WKDWUHTXLUHGGLVFRQWLQXDWLRQRIVWXG\WKHUDS\SULRUWRWKH(27
x 6XEMHFWLVUHFHLYLQJDQWLEDFWHULDOWKHUDS\WKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHUVWXG\
IRUDGLIIHUHQWLQIHFWLRQIURPWKHXQGHUVWXG\
x 'HDWKSULRUWR(27

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
x 6XEMHFWVZHUHQRWVHHQIRU(27HYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUUHDVRQVSHFLI\
x 2WKHUVSHFLILHGUHDVRQ

 &OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW37(

7KH37(DVVHVVPHQWLVWREHSHUIRUPHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\2QO\
VXEMHFWVGHWHUPLQHGWREHD&OLQLFDO6XFFHVVDW(27RU,QGHWHUPLQDWHGXHWRPLVVLQJWKH(27
YLVLWZLOOEHFRQVLGHUHGIRUHYDOXDWLRQDV&OLQLFDO6XFFHVVDW37(6XEMHFWVDVVHVVHGDV&OLQLFDO
)DLOXUHVDW(27RU,QGHWHUPLQDWHIRUUHDVRQVRWKHUWKDQPLVVLQJWKH(27YLVLWZLOOKDYHWKLV
RXWFRPHFDUULHGIRUZDUG7KHLQYHVWLJDWRUZLOOGHWHUPLQHZKHWKHURUQRWWKHVXEMHFWPHHWVWKH
FULWHULDRIRIWKHIROORZLQJFOLQLFDORXWFRPHV
&OLQLFDO6XFFHVVVXUYLYDODIWHUFRPSOHWLRQRIDWHVWDUWLFOHUHJLPHQZLWKRXWUHFHLYLQJDQ\
V\VWHPLFDQWLEDFWHULDOWKHUDS\RWKHUWKDQWHVWDUWLFOHUHVROXWLRQRIVLJQVDQGV\PSWRPVRIWKH
LQIHFWLRQSUHVHQWDW6FUHHQLQJZLWKQRQHZV\PSWRPVRUFRPSOLFDWLRQVDWWULEXWDEOHWR&$%3DQG
QRQHHGIRUIXUWKHUDQWLEDFWHULDOWKHUDS\
&OLQLFDO)DLOXUHWKHVXEMHFWUHTXLUHVDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWR37(
UHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVWR&$%3RUEGHYHORSPHQW
RILQIHFWLRXVFRPSOLFDWLRQVRI&$%3HJHPS\HPDOXQJDEVFHVV
x 7KHVXEMHFWLVUHFHLYLQJDQWLELRWLFVWKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHUVWXG\IRUD
GLIIHUHQWLQIHFWLRQIURPWKHXQGHUVWXG\
x 'HDWKSULRUWR37(

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
x 6XEMHFWVZHUHQRWVHHQIRU37(HYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUVSHFLI\
x 2WKHUVSHFLILHGUHDVRQ


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 27+(5$66(660(176
 5HVRXUFH8WLOL]DWLRQ
7KHQXPEHURIKRVSLWDOGD\VIRUDOOKRVSLWDODGPLVVLRQVGXULQJWKHVWXG\SHULRGZLOOEH
FDOFXODWHG+RVSLWDOGD\VZLOOEHVSHFLILHGIURPGDWHRIDGPLVVLRQWRGDWHRIGLVFKDUJH
 3+$50$&2.,1(7,&3/$60$6$03/(6)2520$'$&<&/,1(
&21&(175$7,21
 6HOHFWLRQRI6LWHVIRU3.6WXGLHV
3KDUPDFRNLQHWLFGDWDZLOOEHDQDO\]HGXVLQJDSRSXODWLRQ3.PRGHO,QRUGHUWRPD[LPL]HWKH
QXPEHURIVXEMHFWVZKRSDUWLFLSDWHVRWKDWWKLVDQDO\VLVLVRSWLPDOFULWHULRQIRUVHOHFWLRQRI
VLWHVLQWKLVVWXG\ZLOOEHWKHVLWH¶VDELOLW\WRSDUWLFLSDWHLQWKH3.SRUWLRQRIWKHVWXG\7RDVVXUH
WKHTXDOLW\DQGDFFXUDF\RIWKH3.VDPSOHVVDPSOHVZLOOEHREWDLQHGRQO\IURPVXEMHFWV
SDUWLFLSDWLQJDWDFHQWHUWKDWKDVWKHDSSURSULDWHIDFLOLWLHVDQGFDSDELOLWLHVDQGKDVEHHQ
VSHFLILFDOO\WUDLQHGE\WKHVSRQVRU
 &ROOHFWLRQRI3.6DPSOHV
3.VDPSOHVZLOOEHFROOHFWHGXVLQJDVSDUVHVDPSOLQJPHWKRGIRUWKHSRSXODWLRQ3.PRGHO7KH
QXPEHURIVDPSOHVDQGFROOHFWLRQVFKHGXOHZLOOYDU\IRULQGLYLGXDOVXEMHFWV7KHVSRQVRUZLOO
QRWLI\WKHVLWHRIWKH3.VDPSOHFROOHFWLRQVFKHGXOHIRUWKHLQGLYLGXDOVXEMHFW8SWRVDPSOHV
ZLOOEHFROOHFWHGSHUVXEMHFWEHWZHHQVWXG\'D\VWRVHH678'<)/2:&+$57
7KHVSRQVRUZLOOSURYLGHKHSDULQWXEHVIRUWKHFROOHFWLRQRI3.EORRGVDPSOHVDQGZLOOSURYLGH
IUHH]HUWXEHVIRUVWRULQJWKHSODVPD%ORRGZLOOEHFROOHFWHGHLWKHUE\IUHVKYHQLSXQFWXUHRUYLDD
FDQQXODXVHG62/(<IRUWKDWSXUSRVHEORRGIRU3.VDPSOHVPXVW127EHGUDZQWKURXJKWKH
VDPHLYDFFHVVXVHGIRUDGPLQLVWUDWLRQRIWHVWDUWLFOH
7KHGDWHVDQGWLPHVIRUDOOGRVHVRIWHVWDUWLFOHDQG3.VDPSOHFROOHFWLRQVZLOOEHUHFRUGHG)RU
LQWUDYHQRXVO\DGPLQLVWHUHGGRVHVRIWHVWDUWLFOHWKHVWDUWDQGVWRSWLPHVIRUHDFKLQIXVLRQVKDOOEH
UHFRUGHG7KHLGHQWLILFDWLRQRIWKHVXEMHFWDQGWKHWLPHRIWKHVDPSOHFROOHFWLRQWRWKHQHDUHVW
PLQXWHVKRXOGEHLPPHGLDWHO\UHFRUGHGRQWKHWXEH7KHWXEHZLOOEHFHQWULIXJHGDWîJIRU
PLQXWHVDQGWKHVHSDUDWHGSODVPDWUDQVIHUUHGLQHTXDODOLTXRWVLQWRSUHODEHOHGWXEHVDQG
WKHWXEHVIUR]HQDW&ZLWKLQPLQXWHVRIFROOHFWLRQ7KHWLPHWKHVDPSOHLVIUR]HQVKRXOG
EHUHFRUGHGWRWKHQHDUHVWPLQXWH

 6WRULQJDQG6KLSSLQJRI3.6DPSOHV
$IWHUDOORIWKH3.VDPSOHVIURPDVLQJOHVXEMHFWKDYHEHHQFROOHFWHGDQGIUR]HQDW&
VDPSOHIURPHDFKWLPHSRLQWFDQEHEDWFKHGWRJHWKHUZLWKFRUUHVSRQGLQJFRPSOHWHVDPSOHVHWV
IURPRWKHUVXEMHFWVDQGEHFDUHIXOO\SDFNDJHGDQGVKLSSHGIUR]HQDW&WRWKH&HQWUDO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

/DERUDWRU\6DPSOHVDUHWREHVKLSSHGZLWKVXIILFLHQWGU\LFHWRUHPDLQIUR]HQGXULQJWUDQVLWXS
WRDSRVVLEOHGD\SHULRG7KH&HQWUDO/DERUDWRU\ZLOOSURFHVVWKHVHVDPSOHVDQGIRUZDUG
WKHPDW&WRWKH$QDO\WLFDO/DERUDWRU\GHVLJQDWHGE\WKHVSRQVRU)RUHDFKVXEMHFWDQGWLPH
SRLQWWKHUHPDLQLQJVWRUHGDOLTXRWVZLOOEHUHWDLQHGRQVLWHDW±&XQWLOUHOHDVHGRUUHTXHVWHG
E\WKHVSRQVRU
 $QDO\VLVRI3.6DPSOHV
7KH$QDO\WLFDO/DERUDWRU\ZLOODVVD\WKHVDPSOHVIRURPDGDF\FOLQHXVLQJDVSHFLILFVHQVLWLYH
DQGYDOLGDWHG/LTXLG&KURPDWRJUDSK\7DQGHP0DVV6SHFWURPHWU\/&0606PHWKRG
DSSURYHGE\WKHVSRQVRU
 27+(5%,20$5.(56
1RQH
 6$)(7<021,725,1*
 $GYHUVH(YHQWV
$Q$(LVDQ\XQWRZDUGXQGHVLUHGRUXQSODQQHGHYHQWLQWKHIRUPRIVLJQVV\PSWRPVGLVHDVH
RUODERUDWRU\RUSK\VLRORJLFREVHUYDWLRQVRFFXUULQJLQDSHUVRQJLYHQDWHVWDUWLFOHRULQDFOLQLFDO
VWXG\7KHHYHQWGRHVQRWQHHGWREHFDXVDOO\UHODWHGWRWKHWHVWDUWLFOHRUFOLQLFDOVWXG\$Q$(
LQFOXGHVEXWLVQRWOLPLWHGWRWKHIROORZLQJ
x $Q\FOLQLFDOO\VLJQLILFDQWZRUVHQLQJRIDSUHH[LVWLQJFRQGLWLRQ
x $Q$(RFFXUULQJIURPRYHUGRVHRIDWHVWDUWLFOHZKHWKHUDFFLGHQWDORULQWHQWLRQDO2YHUGRVH
LVDGRVHJUHDWHUWKDQWKDWVSHFLILHGLQWKHSURWRFRO
x $Q$(RFFXUULQJIURPDEXVHHJXVHIRUQRQFOLQLFDOUHDVRQVRIDWHVWDUWLFOH
x $Q$(WKDWKDVEHHQDVVRFLDWHGZLWKWKHGLVFRQWLQXDWLRQRIWKHXVHRIDWHVWDUWLFOH

$6$(LVDQ$(WKDW
x 5HVXOWVLQGHDWK
x ,VOLIHWKUHDWHQLQJVHHEHORZ
x 5HTXLUHVKRVSLWDOL]DWLRQRUSURORQJDWLRQRIDQH[LVWLQJKRVSLWDOL]DWLRQVHHEHORZ
x 5HVXOWVLQDSHUVLVWHQWRUVLJQLILFDQWGLVDELOLW\RULQFDSDFLW\VHHEHORZ
x 5HVXOWVLQFDQFHU
x 5HVXOWVLQDFRQJHQLWDODQRPDO\RUELUWKGHIHFW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x $GGLWLRQDOO\LPSRUWDQWPHGLFDOHYHQWVWKDWPD\QRWUHVXOWLQGHDWKEHOLIHWKUHDWHQLQJRU
UHTXLUHKRVSLWDOL]DWLRQPD\EHFRQVLGHUHG6$(VZKHQEDVHGRQDSSURSULDWHPHGLFDO
MXGJPHQWWKH\PD\MHRSDUGL]HWKHVXEMHFWDQGPD\UHTXLUHPHGLFDORUVXUJLFDOLQWHUYHQWLRQ
WRSUHYHQWRIWKHRXWFRPHVOLVWHGLQWKLVGHILQLWLRQ([DPSOHVRIVXFKHYHQWVLQFOXGH
DOOHUJLFEURQFKRVSDVPUHTXLULQJLQWHQVLYHWUHDWPHQWLQDQHPHUJHQF\URRPRUDWKRPHEORRG
G\VFUDVLDVRUFRQYXOVLRQVWKDWGRQRWUHVXOWLQKRVSLWDOL]DWLRQRUGHYHORSPHQWRIGUXJ
GHSHQGHQF\RUGUXJDEXVH

/LIHWKUHDWHQLQJUHIHUVWRLPPHGLDWHULVNRIGHDWKDVWKHHYHQWRFFXUUHGSHUWKHUHSRUWHU$
OLIHWKUHDWHQLQJH[SHULHQFHGRHVQRWLQFOXGHDQH[SHULHQFHKDGLWRFFXUUHGLQDPRUHVHYHUH
IRUPPLJKWKDYHFDXVHGGHDWKEXWDVLWDFWXDOO\RFFXUUHGGLGQRWFUHDWHDQLPPHGLDWHULVNRI
GHDWK)RUH[DPSOHKHSDWLWLVWKDWUHVROYHGZLWKRXWHYLGHQFHRIKHSDWLFIDLOXUHZRXOGQRWEH
FRQVLGHUHGOLIHWKUHDWHQLQJHYHQWKRXJKKHSDWLWLVRIDPRUHVHYHUHQDWXUHFDQEHIDWDO
6LPLODUO\DQDOOHUJLFUHDFWLRQUHVXOWLQJLQDQJLRHGHPDRIWKHIDFHZRXOGQRWEHOLIHWKUHDWHQLQJ
HYHQWKRXJKDQJLRHGHPDRIWKHODU\Q[DOOHUJLFEURQFKRVSDVPRUDQDSK\OD[LVFDQEHIDWDO
+RVSLWDOL]DWLRQLVRIILFLDODGPLVVLRQWRDKRVSLWDO+RVSLWDOL]DWLRQRUSURORQJDWLRQRID
KRVSLWDOL]DWLRQFRQVWLWXWHVFULWHULDIRUDQ$(WREHVHULRXVKRZHYHULWLVQRWLQLWVHOIFRQVLGHUHG
DQ6$(,QDEVHQFHRIDQ$(DKRVSLWDOL]DWLRQRUSURORQJDWLRQRIDKRVSLWDOL]DWLRQVKRXOGQRW
EHUHSRUWHGDVDQ6$(E\WKHSDUWLFLSDWLQJLQYHVWLJDWRU7KLVLVWKHFDVHLQWKHIROORZLQJ
VLWXDWLRQV
x 7KHKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQLVQHHGHGIRUDSURFHGXUHUHTXLUHGE\
WKHSURWRFRO
x 7KHKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQLVSDUWRIDURXWLQHSURFHGXUHIROORZHG
E\WKHFHQWHUHJVWHQWUHPRYDODIWHUVXUJHU\7KLVVKRXOGEHUHFRUGHGLQWKHVWXG\ILOH

,QDGGLWLRQDKRVSLWDOL]DWLRQIRUDSUHH[LVWLQJFRQGLWLRQWKDWKDVQRWZRUVHQHGGRHVQRWFRQVWLWXWH
DQ6$(
'LVDELOLW\LVGHILQHGDVDVXEVWDQWLDOGLVUXSWLRQLQDSHUVRQ¶VDELOLW\WRFRQGXFWQRUPDOOLIH
IXQFWLRQV
,IWKHUHLVDQ\GRXEWDERXWZKHWKHUWKHLQIRUPDWLRQFRQVWLWXWHVDQ6$(WKHLQIRUPDWLRQLVWUHDWHG
DVDQ6$(
$SURWRFROUHODWHG$(LVDQ$(RFFXUULQJGXULQJDFOLQLFDOVWXG\WKDWLVQRWUHODWHGWRWKHWHVW
DUWLFOHEXWLVFRQVLGHUHGE\WKHLQYHVWLJDWRURUWKH0HGLFDO0RQLWRURUGHVLJQHHWREHUHODWHGWR
WKHUHVHDUFKFRQGLWLRQVLHUHODWHGWRWKHIDFWWKDWDVXEMHFWLVSDUWLFLSDWLQJLQWKHVWXG\)RU
H[DPSOHDSURWRFROUHODWHG$(PD\EHDQXQWRZDUGHYHQWDQHYHQWUHODWHGWRDPHGLFDO
SURFHGXUHUHTXLUHGE\WKHSURWRFRO
2WKHU5HSRUWDEOH,QIRUPDWLRQ&HUWDLQLQIRUPDWLRQDOWKRXJKQRWFRQVLGHUHGDQ6$(PXVWEH
UHFRUGHGUHSRUWHGDQGIROORZHGXSDVLQGLFDWHGIRUDQ6$(7KLVLQFOXGHV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x 3UHJQDQF\H[SRVXUHWRDWHVWDUWLFOH,IDSUHJQDQF\LVFRQILUPHGXVHRIWKHWHVWDUWLFOHPXVW
EHGLVFRQWLQXHGLPPHGLDWHO\,QIRUPDWLRQDERXWSUHJQDQF\H[SRVXUHLQFOXGHVWKHHQWLUH
FRXUVHRISUHJQDQF\DQGGHOLYHU\DQGSHULQDWDODQGQHRQDWDORXWFRPHVHYHQLIWKHUHDUHQR
DEQRUPDOILQGLQJV%RWKPDWHUQDODQGSDWHUQDOH[SRVXUHVDUHFRQVLGHUHGRWKHUUHSRUWDEOH
LQIRUPDWLRQ)RUH[SRVXUHLQYROYLQJWKHIHPDOHSDUWQHURIDPDOHVXEMHFWWKHQHFHVVDU\
LQIRUPDWLRQPXVWEHFROOHFWHGIURPWKHVXEMHFWZKLOHUHVSHFWLQJWKHFRQILGHQWLDOLW\RIWKH
SDUWQHU
x /DFWDWLRQH[SRVXUHWRDWHVWDUWLFOHZLWKRUZLWKRXWDQ$(
x 2YHUGRVHRIDWHVWDUWLFOHDVVSHFLILHGLQWKLVSURWRFROZLWKRUZLWKRXWDQ$(
x ,QDGYHUWHQWRUDFFLGHQWDOH[SRVXUHWRDWHVWDUWLFOHZLWKRUZLWKRXWDQ$(

 6HULRXV$GYHUVH(YHQW5HSRUWLQJ
$OO6$(VDQGIROORZXSLQIRUPDWLRQPXVWEHUHSRUWHGZLWKLQEXVLQHVVGD\E\ID[LQJD
FRPSOHWHG6$(5HSRUW)RUPWRWKHID[QXPEHUEHORZRUHPDLOLQJDFRPSOHWHG6$(5HSRUW
)RUPWRWKHHPDLODGGUHVVEHORZ
6HULRXV$GYHUVH(YHQW6$(FRQWDFWLQIRUPDWLRQ
(0DLO

)D[


 2YHUGRVH
$Q\DGPLQLVWUDWLRQRIRPDGDF\FOLQHRIJUHDWHUWKDQPJLYRUSRZLWKLQDKRXUSHULRG
ZLOOEHDQRYHUGRVHUHJDUGOHVVRIZKHWKHUWKHRYHUGRVHLVLQWHQWLRQDORUDFFLGHQWDOLWLVD
UHSRUWDEOHHYHQWDQGWKHVSRQVRUPXVWEHQRWLILHGZLWKLQEXVLQHVVGD\$Q\DGPLQLVWUDWLRQRI
PR[LIOR[DFLQRIJUHDWHUWKDQJUDPVLQDKRXUSHULRGZLOOEHDQRYHUGRVHUHJDUGOHVVRI
ZKHWKHUWKHRYHUGRVHLVLQWHQWLRQDORUDFFLGHQWDOLWLVDUHSRUWDEOHHYHQWDQGWKHVSRQVRUPXVWEH
QRWLILHGZLWKLQKRXUV,QWKHHYHQWWKDWDVWXG\VXEMHFWWDNHVDQRYHUGRVHRIWHVWDUWLFOHWKH
LQYHVWLJDWRUPD\REWDLQWKHVXEMHFW¶VWUHDWPHQWDVVLJQPHQWE\FRQWDFWLQJWKH,[567KH,[56
ZLOODOVRSURYLGHDFRQILUPDWLRQUHSRUWRIWKHGUXJDVVLJQPHQWWRVLWHSHUVRQQHO7KHVLWH
SHUVRQQHOZLOOUHWDLQWKLVFRQILUPDWLRQUHSRUW
7KHSK\VLFLDQPDQDJLQJWKHRYHUGRVHPD\RUGHUDQ\WHVWKHVKHWKLQNVLVQHFHVVDU\WRPDQDJH
WKHVXEMHFWSURSHUO\
 0HGLFDWLRQ(UURUV
0HGLFDWLRQHUURUVDUHWKHUHVXOWRIDGPLQLVWUDWLRQRUFRQVXPSWLRQRIWKHZURQJSURGXFWE\WKH
ZURQJVXEMHFWDWWKHZURQJWLPHDQGRUE\WKHZURQJDGPLQLVWUDWLRQURXWHGXHWRKXPDQHUURU
0HGLFDWLRQHUURUVLQFOXGHEXWDUHQRWOLPLWHGWRWKHIROORZLQJ

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x 7KHDGPLQLVWUDWLRQDQGRUFRQVXPSWLRQRIWHVWDUWLFOHWKDWKDVQRWEHHQDVVLJQHGWRWKH
VXEMHFW
x $GPLQLVWUDWLRQRIH[SLUHGWHVWDUWLFOH

$OO$(VDQG6$(VPXVWEHKDQGOHGDVVSHFLILHGLQWKLVSURWRFROZKHWKHURUQRWWKH\DUH
DVVRFLDWHGZLWKDPHGLFDWLRQHUURU$PHGLFDWLRQHUURUDVVRFLDWHGZLWKDQ6$(LQFOXGLQJ
RYHUGRVHLQDGYHUWHQWH[SRVXUHDQGRUDFFLGHQWDOH[SRVXUHZLOOEHUHSRUWHGZLWKWKH6$(RQWKH
6$(5HSRUW)RUP$OORWKHUPHGLFDWLRQHUURUVZLOOEHUHSRUWHGE\ID[LQJRUHPDLOLQJWKH&OLQLFDO
7HVW$UWLFOH(UURU,QFLGHQW5HSRUW)RUPDVLQGLFDWHGLQWKH(PHUJHQF\&RQWDFWV6HH6HFWLRQ
 5HFRUGLQJDQG5HSRUWLQJ
$VXEMHFW¶V$(VDQG6$(VZLOOEHUHFRUGHGDQGUHSRUWHGIURPWKHVLJQLQJRIWKH,&)WRWKHWLPH
RIWKH)LQDO)ROORZXSDVVHVVPHQW7KHLQYHVWLJDWRUPXVWLQVWUXFWWKHVXEMHFWWRUHSRUW$(VDQG
6$(VGXULQJWKLVWLPHSHULRG5HSRUWVRIGHDWKZLWKLQGD\VDIWHUWKHODVWFRQWDFWZLWKWKH
VXEMHFWZLOOEHUHSRUWHGWRWKHVSRQVRUDQGDGGLWLRQDOLQIRUPDWLRQUHODWLYHWRWKHFDXVHRIGHDWK
ZLOOEHVRXJKWDQGGRFXPHQWHG
$OO$(VDQG6$(VPXVWEHUHFRUGHGRQVRXUFHGRFXPHQWV$OO$(VDQG6$(VIRUVXEMHFWVZKR
UHFHLYHDWUHDWPHQWDVVLJQPHQWZLOOEHUHFRUGHGLQWKHH&5)V
7KHLQYHVWLJDWRUPXVWIROORZXSDVPHGLFDOO\QHFHVVDU\RQDOO$(VDQG6$(VXQWLOWKHHYHQWV
KDYHVXEVLGHGWKHFRQGLWLRQKDVUHWXUQHGWR%DVHOLQHRULQFDVHRISHUPDQHQWLPSDLUPHQWXQWLO
WKHFRQGLWLRQVWDELOL]HV
$(VVKRXOGEHEDVHGRQWKHVLJQVRUV\PSWRPVGHWHFWHGGXULQJWKHSK\VLFDOH[DPLQDWLRQDQGRQ
FOLQLFDOHYDOXDWLRQRIWKHVXEMHFW,QDGGLWLRQWRWKHLQIRUPDWLRQREWDLQHGIURPWKRVHVRXUFHVWKH
VXEMHFWVKRXOGEHDVNHGWKHIROORZLQJQRQVSHFLILFTXHVWLRQ+RZKDYH\RXEHHQIHHOLQJVLQFH
\RXUODVWYLVLW"6LJQVDQGV\PSWRPVVKRXOGEHUHFRUGHGXVLQJVWDQGDUGPHGLFDOWHUPLQRORJ\
$Q\XQDQWLFLSDWHGULVNVWRWKHVXEMHFWVPXVWEHUHSRUWHGSURPSWO\WRWKH,5%,(&5(%
 3UHJQDQFLHV
7RHQVXUHVXEMHFWVDIHW\HDFKSUHJQDQF\LQDVXEMHFWRQWHVWDUWLFOHPXVWEHUHSRUWHGWRWKH
VSRQVRUZLWKLQEXVLQHVVGD\RIOHDUQLQJRILWVRFFXUUHQFH7HVWDUWLFOHVKRXOGEHGLVFRQWLQXHG
LPPHGLDWHO\DQGWKHSUHJQDQF\VKRXOGEHIROORZHGXSWRGHWHUPLQHRXWFRPHLQFOXGLQJ
VSRQWDQHRXVRUYROXQWDU\WHUPLQDWLRQGHWDLOVRIWKHELUWKDQGWKHSUHVHQFHRUDEVHQFHRIDQ\
ELUWKGHIHFWVFRQJHQLWDODEQRUPDOLWLHVRUPDWHUQDODQGRUQHZERUQFRPSOLFDWLRQV
3UHJQDQF\VKRXOGEHUHFRUGHGRQD&OLQLFDO7ULDO3UHJQDQF\)RUPDQGUHSRUWHGE\WKH
LQYHVWLJDWRUWRWKHVSRQVRU3UHJQDQF\IROORZXSVKRXOGEHUHFRUGHGRQWKHVDPHIRUPDQG
VKRXOGLQFOXGHDQDVVHVVPHQWRIWKHSRVVLEOHUHODWLRQVKLSWRWKHWHVWDUWLFOHRIDQ\SUHJQDQF\
RXWFRPH$Q\6$(H[SHULHQFHGGXULQJSUHJQDQF\PXVWEHUHSRUWHGRQWKH6$(5HSRUW)RUP

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH
$'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH'60&LQGHSHQGHQWRIWKHVSRQVRUZLOOSURYLGH
RQJRLQJPRQLWRULQJRIVDIHW\GDWDRQDQDSSUR[LPDWHO\TXDUWHUO\EDVLV7KH'60&ZLOOUHYLHZ
WKHGDWDDVWUHDWPHQW$DQGWUHDWPHQW%7KHFKDUWHUIRUWKH'60&ZLOOFOHDUO\RXWOLQHDOOUROHV
UHVSRQVLELOLWLHVDQGGHFLVLRQPDNLQJFULWHULD7KLVZLOOLQFOXGHDGHWDLOHGGHVFULSWLRQRIWKH
PDQQHULQZKLFKVHFXULW\DQGEOLQGLQJRIWKHGDWDIRUWKHVSRQVRUZLOOEHPDLQWDLQHGLQDGGLWLRQ
WRWKHSURFHGXUHVWKDWHQVXUHWKHLQGHSHQGHQFHDQGREMHFWLYLW\RIWKH'60&¶VDFWLYLWLHV$VWKH
'60&ZLOOEHUHYLHZLQJVDIHW\GDWDIRUWKLVVWXG\LWPD\UHTXLUHUHSRUWVLQGLFDWLQJWUHDWPHQW
DVVLJQPHQWWRDVVLVWLQFOLQLFDOLQWHUSUHWDWLRQRILWVILQGLQJV7KHUHIRUHWKH'60&FKDUWHUZLOO
SURYLGHDGHWDLOHGH[SODQDWLRQRIWKHSURFHVVHVE\ZKLFKWKH'60&ZLOOREWDLQWKHLQIRUPDWLRQ
QHFHVVDU\IRULWVRSHUDWLRQWKDWZLOOQRWSUHMXGLFHRUFUHDWHDQ\SRWHQWLDOVRXUFHRIELDVLQWKH
FRQGXFWRIWKHVWXG\
 '$7$$1$/<6,6
$OODQDO\VHVRIGDWDIRUWKLVVWXG\ZLOOFRPSO\ZLWK,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ
RI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI3KDUPDFHXWLFDOVIRU+XPDQ8VH,&+(DQGWKH
VSRQVRU¶VJXLGDQFHGRFXPHQWVDQGVWDQGDUGV6WDWLVWLFDODQDO\VHVZLOOEHSHUIRUPHGXVLQJ
6WDWLVWLFDO$QDO\VLV6RIWZDUH6$6
$6$3LQFRUSRUDWLQJWKHVHFWLRQVEHORZDQGZLWKPRFNWDEOHILJXUHDQGOLVWLQJ7)/VKHOOVZLOO
EHSUHSDUHGSULRUWRWKHVWDUWRIWKHVWXG\DQGDSSURYHGDQGILQDOL]HGE\WKHVSRQVRUSULRU
GDWDEDVHORFN7KLVSODQZLOOGHILQHSRSXODWLRQVIRUDQDO\VLVRXWOLQHDOOGDWDKDQGOLQJ
FRQYHQWLRQVDQGVSHFLI\VWDWLVWLFDOPHWKRGVWREHXVHGIRUDQDO\VLVRIVDIHW\DQGHIILFDF\$VD
FRQVHTXHQFHRIGLIIHULQJUHJXODWRU\UHTXLUHPHQWVIRUWKHFKRLFHRIWKHSULPDU\HIILFDF\RXWFRPH
DQGVWDWLVWLFDODQDO\VHVVHSDUDWH6$3VZLOOEHSUHSDUHG)'$DQG(0$7KHVHFWLRQVEHORZ
LQGLFDWHWKHRYHUDOOVWUXFWXUHDQGDSSURDFKRIWKHDQDO\VHV
,QIHUHQWLDOVWDWLVWLFDODQDO\VHVRIWKHSULPDU\DQGVHFRQGDU\RXWFRPHVZLOOEHFRQGXFWHGDV
RXWOLQHGEHORZ'HVFULSWLYHVWDWLVWLFVLQFOXGLQJWKHQXPEHUVDQGSHUFHQWDJHVIRUFDWHJRULFDO
YDULDEOHVDQGWKHQXPEHUVPHDQVVWDQGDUGGHYLDWLRQV6'PHGLDQVPLQLPXPVDQG
PD[LPXPVIRUFRQWLQXRXVYDULDEOHVZLOOEHSURYLGHG$OOFRPSDULVRQVZLOOEHIRURPDGDF\FOLQH
YHUVXVPR[LIOR[DFLQ([SORUDWRU\DQDO\VHVPD\DOVREHSHUIRUPHG/LVWLQJVRILQGLYLGXDO
VXEMHFW¶VGDWDZLOOEHSURGXFHG
 $QDO\VLV3RSXODWLRQV
$QXPEHURIVXEMHFWSRSXODWLRQVKDYHEHHQGHILQHGIRUWKHYDULRXVDQDO\VHVRIHIILFDF\DQG
VDIHW\DVIROORZV
x 7KH,77SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x 7KHPLFURELRORJLFDOLQWHQWWRWUHDWPLFUR,77SRSXODWLRQZLOOFRQVLVWRIVXEMHFWVLQWKH,77
SRSXODWLRQZKRKDYHDWOHDVWFDXVDWLYHSDWKRJHQLGHQWLILHGDW6FUHHQLQJIURPFXOWXUHRID
UHVSLUDWRU\VSHFLPHQHJUHVSLUDWRU\IOXLGREWDLQHGE\EURQFKRDOYHRODUODYDJHRU
EURQFKRVFRS\SOHXUDOIOXLGREWDLQHGE\WKRUDFHQWHVLVRUH[SHFWRUDWHGRULQGXFHGVSXWXP
PHHWLQJDGHTXDF\FULWHULDFXOWXUHRIEORRGRUIURPDFXOWXUHLQGHSHQGHQWPHWKRGHJ
SRVLWLYHXULQDU\DQWLJHQWHVWIRU6WUHSWRFRFFXVSQHXPRQLDHRU/HJLRQHOODSQHXPRSKLODRU
SRVLWLYHVHURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHRU&KODP\GRSKLOD
SQHXPRQLDH
x 7KH&(SRSXODWLRQZLOOFRQVLVWRIDOO,77VXEMHFWVZKRUHFHLYHGWHVWDUWLFOHKDYHDTXDOLI\LQJ
&$%3DQDVVHVVPHQWRIRXWFRPHDQGPHHWDOORWKHUHYDOXDELOLW\FULWHULDGHWDLOHGLQWKH
6$3
x 7KHPLFURELRORJLFDOO\HYDOXDEOH0(SRSXODWLRQZLOOLQFOXGHVXEMHFWVLQWKH&(SRSXODWLRQ
ZKRKDYHDWOHDVWFDXVDWLYHSDWKRJHQDW6FUHHQLQJ
x 7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWVZKRUHFHLYHGDWOHDVWGRVHRI
WHVWDUWLFOH

 6XEMHFW'HPRJUDSKLFVDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV
'HVFULSWLYHVWDWLVWLFVE\WUHDWPHQWDUPZLOOEHSURYLGHGIRUWKHIROORZLQJ
x 6XEMHFWGLVSRVLWLRQ
x FRPSOHWHGWHVWDUWLFOH
x GLVFRQWLQXHGWHVWDUWLFOHE\UHDVRQIRUGLVFRQWLQXDWLRQ
x FRPSOHWHGVWXG\
x GLVFRQWLQXHGVWXG\E\UHDVRQIRUGLVFRQWLQXDWLRQ
x 3URWRFROGHYLDWLRQV
x &$%3EDFNJURXQGLQIRUPDWLRQ
x VXEMHFWGHPRJUDSKLFVDJH\HDUVJHQGHUUDFHKHLJKWFPZHLJKWNJ%RG\0DVV
,QGH[%0,NJP
x 32575LVN&ODVV
x 0HGLFDOKLVWRULHVDQGFRQWLQXLQJPHGLFDOFRQGLWLRQV

%DVHOLQHGHPRJUDSKLFDQGPHGLFDOYDULDEOHVZLOOEHDQDO\]HGXVLQJDVLGHG)LVKHU¶VH[DFWWHVW
IRUFDWHJRULFDOYDULDEOHVRUDVLGHG:LOFR[RQ5DQN6XPWHVWIRURUGLQDODQGFRQWLQXRXV
YDULDEOHV
 7UHDWPHQWV7HVW$UWLFOH5HVFXH0HGLFDWLRQ2WKHU&RQFRPLWDQW7KHUDSLHV
&RPSOLDQFH
7KHQXPEHURILYLQIXVLRQVZLOOEHVXPPDUL]HG1XPEHURIGD\VRQLYEHIRUHVZLWFKWRSRZLOO
EHVXPPDUL]HG)RUWKHSRPHGLFDWLRQDFWXDOWDEOHWFRXQWWDNHQZLOOEHSUHVHQWHG

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7KHWRWDOQXPEHURIGD\VRQVWXG\WKHUDS\ZLOODOVREHSURYLGHGE\WUHDWPHQWJURXS
3ULRUPHGLFDWLRQVFRQFRPLWDQWPHGLFDWLRQVVHSDUDWHO\IRUDQWLELRWLFVDQGQRQDQWLELRWLFVZLOOEH
VXPPDUL]HG)RUSULRUDQGFRQFRPLWDQWDQWLELRWLFVWKHUHDVRQIRUUHFHLSWZLOOEHSURYLGHG
 3ULPDU\(IILFDF\$QDO\VLV
)RUDOOHIILFDF\DQDO\VHVVXEMHFWGDWDZLOOEHDQDO\]HGLQWKHJURXSWRZKLFKWKHVXEMHFWZDV
UDQGRPL]HG)RUWKHSULPDU\DQDO\VHVIRUERWKWKH)'$DQG(0$VXEMHFWVZLOOEHDQDO\]HGLQ
WKHVWUDWXPWRZKLFKWKH\ZHUHUDQGRPL]HGVHH6HFWLRQ

(DUO\&OLQLFDO5HVSRQVH(IILFDF\9DULDEOH
7KH(DUO\&OLQLFDO5HVSRQVHFDQEH&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHGHILQHG
LQ6HFWLRQ
$Q,QGHWHUPLQDWH5HVSRQVHLVLQFOXGHGLQWKHGHQRPLQDWRUIRUWKHFDOFXODWLRQRIWKHSHUFHQWDJH
RIVXEMHFWVZLWKD&OLQLFDO6XFFHVVLQWKH,77SRSXODWLRQDQGWKXVLVHVVHQWLDOO\FRQVLGHUHGDVD
&OLQLFDO)DLOXUHIRUWKHSXUSRVHRIWKHSULPDU\DQDO\VLV

,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37((IILFDF\9DULDEOH
7KLVLVGHILQHGDVWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(YLVLWZLWK
RXWFRPHVRI&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHGHILQHGLQ6HFWLRQLQ
WKH,77SRSXODWLRQDQG&OLQLFDO6XFFHVVDQG&OLQLFDO)DLOXUHLQWKH&(SRSXODWLRQ$Q
,QGHWHUPLQDWH5HVSRQVHLVLQFOXGHGLQWKHGHQRPLQDWRUIRUWKHFDOFXODWLRQRIWKHSHUFHQWDJHRI
VXEMHFWVZLWKD&OLQLFDO6XFFHVVLQWKH,77SRSXODWLRQDQGWKXVLVHVVHQWLDOO\FRQVLGHUHGD
&OLQLFDO)DLOXUHIRUWKHSXUSRVHRIWKHSULPDU\DQDO\VLVIRUWKH(0$

6WDWLVWLFDO0RGHO+\SRWKHVLVDQG0HWKRGRI$QDO\VLV
7RGHPRQVWUDWHWKHHIILFDF\RIRPDGDF\FOLQHLVQRQLQIHULRUWRPR[LIOR[DFLQLQWKHWUHDWPHQWRI
DGXOWVZLWK&$%3WKHIROORZLQJK\SRWKHVLVZLOOEHHYDOXDWHGE\DQDO\VLVRIWKH&OLQLFDO6XFFHVV
UDWHV
7KHQXOOK\SRWKHVLVDQGDOWHUQDWHK\SRWKHVLVIRUWKH(DUO\&OLQLFDO5HVSRQVHHQGSRLQWZLOOEH
DVVHVVHGLQWKH,77SRSXODWLRQDVIROORZV
+Rș7±ș&¨
+DLș7±ș&!¨
:KHUHWKHFOLQLFDOVXFFHVVUDWHIRUWKHRPDGDF\FOLQHUHJLPHQLVș7DQGIRUPR[LIOR[DFLQLVș&
¨LVWKHQRQLQIHULRULW\1,PDUJLQDQGLV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

6LPLODUQXOODQGDOWHUQDWLYHK\SRWKHVHVFDQEHVHWXSZLWK¨RIIRUWKH37(HQGSRLQW)RU
WKH(DUO\&OLQLFDO5HVSRQVH)'$HQGSRLQWDVLGHGFRQILGHQFHLQWHUYDO&,DSSURDFK
IRUWKHGLIIHUHQFHRIFOLQLFDOVXFFHVVUDWHVXVLQJWKHSRLQWHVWLPDWHRIWKHGLIIHUHQFH
RPDGDF\FOLQHUHVSRQVHSURSRUWLRQPLQXVPR[LIOR[DFLQUHVSRQVHSURSRUWLRQZLOOEHXVHGWRWHVW
IRUWKH1,RIWKHRPDGDF\FOLQHDUPFRPSDUHGWRWKHPR[LIOR[DFLQDUPLQWKH,77SRSXODWLRQ
7KH&,ZLOOEHFDOFXODWHGXVLQJWKHXQVWUDWLILHGPHWKRGSURSRVHGE\0LHWWLQHQDQG
1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ2PDGDF\FOLQHZLOOEHFRQVLGHUHGQRQLQIHULRUWR
PR[LIOR[DFLQLIWKHORZHUERXQGRIWKH&,LVJUHDWHUWKDQ
)RU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37((0$SULPDU\HIILFDF\DQDO\VHVLQ
ERWKWKH,77DQG&(SRSXODWLRQVDVLGHG&,DSSURDFKIRUWKHGLIIHUHQFHRIFOLQLFDO
VXFFHVVUDWHVXVLQJWKHSRLQWHVWLPDWHRIWKHGLIIHUHQFHRPDGDF\FOLQHUHVSRQVHSURSRUWLRQ
PLQXVPR[LIOR[DFLQUHVSRQVHSURSRUWLRQZLOOEHXVHGWRWHVWIRUWKH1,RIWKHRPDGDF\FOLQHDUP
FRPSDUHGWRWKHPR[LIOR[DFLQDUPLQWKRVHVXEMHFWVZLWKD32575LVN&ODVVRI,,,RUKLJKHU
7KH&,ZLOOEHFDOFXODWHGXVLQJWKHVWUDWLILHGIRUWKHUDQGRPL]DWLRQVWUDWLILFDWLRQIDFWRUV
PHWKRGSURSRVHGE\0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ2PDGDF\FOLQH
ZLOOEHFRQVLGHUHGQRQLQIHULRUWRPR[LIOR[DFLQLIWKHORZHUERXQGRIWKH&,LVJUHDWHUWKDQ
(DUO\&OLQLFDO5HVSRQVHDQG,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(ZLOOEH
WHVWHGVHSDUDWHO\DQGDUHQRWFRSULPDU\HQGSRLQWV7KHSUREDELOLW\IRUDSSURYLQJDQLQHIIHFWLYH
GUXJEDVHGRQ37(HIILFDF\LVUHJDUGOHVVRIWKHUHVXOWIRUWKH(DUO\&OLQLFDO5HVSRQVH
HQGSRLQWDQGYLFHYHUVD$QDGMXVWPHQWZRXOGRQO\EHUHTXLUHGLIZLQQLQJRQDWOHDVWHQGSRLQW
ZRXOGUHVXOWLQJOREDODSSURYDOZKLFKLVQRWWKHFDVHKHUH,QDGGLWLRQQRDOSKDDGMXVWPHQWLV
QHHGHGIRUWKHFRSULPDU\HIILFDF\HQGSRLQWVIRUWKH(0$,77DQG&(SRSXODWLRQVVLQFH1,
PXVWEHVKRZQLQERWKSRSXODWLRQVWRFRQFOXGH1,+HQFHWKHUHZLOOEHQRDGMXVWPHQWIRU
PXOWLSOHHQGSRLQWV

$GGLWLRQDO$QDO\VHVRIWKH3ULPDU\(IILFDF\2XWFRPHV
$GGLWLRQDODQGVHQVLWLYLW\DQDO\VHVRIWKHSULPDU\HIILFDF\RXWFRPHV(DUO\&OLQLFDO5HVSRQVH
DQG,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(ZLOOEHSHUIRUPHG$QDO\VHVIRUWKH
)'$SULPDU\RXWFRPHZLOOEHGHVFULEHGKHUHDQGLQPRUHGHWDLOLQWKH6$3$QDO\VHVIRUWKH
(0$SULPDU\RXWFRPHZLOOEHGHVFULEHGLQWKH6$3
,IWKHQXOOK\SRWKHVLVRILQIHULRULW\LVUHMHFWHGIRUWKH(DUO\&OLQLFDO5HVSRQVHLQWKH,77
SRSXODWLRQDQGWKHREVHUYHGVXFFHVVUHVSRQVHSURSRUWLRQIRURPDGDF\FOLQHLVODUJHUWKDQWKH
REVHUYHGSURSRUWLRQIRUPR[LIOR[DFLQDIRUPDOVWDWLVWLFDODQDO\VLVRIVXSHULRULW\ZLOOEH
FRQGXFWHG,IWKHORZHUOLPLWRIWKHVLGHG&,IRUWKHWUHDWPHQWGLIIHUHQFHLVJUHDWHUWKDQ
RPDGDF\FOLQHZLOOEHFRQVLGHUHGVXSHULRUWRPR[LIOR[DFLQ
7KHSULPDU\HIILFDF\RXWFRPHZLOOEHDVVHVVHGVHSDUDWHO\DFURVVWKHVWUDWLILFDWLRQIDFWRUVRI
32575LVN&ODVVUHFHLSWRIDOORZHGDQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQWDQGJHRJUDSKLFUHJLRQVWUDWXPE\WUHDWPHQWJURXS)RUHDFK32575LVN&ODVV
VWUDWXPHDFKSULRUDQWLEDFWHULDOWKHUDS\VWUDWXPDQGHDFKJHRJUDSKLFUHJLRQVWUDWXPDVLGHG
&,IRUWKHREVHUYHGGLIIHUHQFHLQ(DUO\&OLQLFDO5HVSRQVHUDWHVZLOOEHFDOFXODWHGIRUWKH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

,77SRSXODWLRQ$GGLWLRQDOVXEJURXSDQDO\VHVRIWKHSULPDU\HIILFDF\RXWFRPHPD\EH
FRQGXFWHGDVGHVFULSWLYHDQDO\VHV
6HQVLWLYLW\DQDO\VHVLQFOXGHFRQGXFWLQJDQDGMXVWHGDQDO\VLVRIWKHSULPDU\HIILFDF\RXWFRPH
EDVHGRQWKHUDQGRPL]HGVWUDWXPDQGVHSDUDWHO\EDVHGRQWKHVWUDWXPWKHVXEMHFWDFWXDOO\
EHORQJVDQGFRQGXFWLQJDQDQDO\VLVZKHUHDOOVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUH
FRQVLGHUHG&OLQLFDO6XFFHVVHV
 $QDO\VLVRI6HFRQGDU\9DULDEOHV
$QDO\VHVIRUWKH)'$VHFRQGDU\RXWFRPHVZLOOEHGHVFULEHGKHUHDQGLQPRUHGHWDLOLQWKH6$3
$QDO\VHVIRUWKH(0$VHFRQGDU\RXWFRPHVZLOOEHGHVFULEHGLQWKH6$37KHQXPEHUDQG
SHUFHQWDJHRIVXEMHFWVFODVVLILHGDVD&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHDQG,QGHWHUPLQDWHE\WKH
,QYHVWLJDWRU¶V$VVHVVPHQWDW37(LQWKH,77DQG&(SRSXODWLRQVE\GHILQLWLRQVXEMHFWVZLWKDQ
,QGHWHUPLQDWHUHVSRQVHDUHH[FOXGHGIURPWKH&(SRSXODWLRQZLOOEHFDOFXODWHGIRUHDFK
WUHDWPHQWJURXS$VLGHGXQDGMXVWHG&,ZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQ
WKHFOLQLFDOVXFFHVVUDWHXVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ
)RU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(LQWKH,77DQG&(
SRSXODWLRQVWKH&,LVIRUGHVFULSWLYHSXUSRVHVRQO\DQGQRFRQFOXVLRQRI1,ZLOOEHPDGH
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFKWUHDWPHQWJURXSLQHDFKUHVSRQVHFDWHJRU\IRU
(DUO\&OLQLFDO5HVSRQVHZLOOEHSUHVHQWHGIRUWKHPLFUR,77SRSXODWLRQ7KHQXPEHUDQG
SHUFHQWDJHRIVXEMHFWVZKRDUHFODVVLILHGDVD&OLQLFDO6XFFHVVDQG&OLQLFDO)DLOXUHE\WKH
LQYHVWLJDWRUDWWKH37(YLVLWLQ0(SRSXODWLRQZLOOEHFDOFXODWHG7ZRVLGHGXQDGMXVWHG&,
ZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQWKHFOLQLFDOVXFFHVVUDWHVXVLQJWKHPHWKRGRI
0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDQ(DUO\&OLQLFDO5HVSRQVHRIVXFFHVVDQGDQ
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(RI&OLQLFDO6XFFHVVE\SDWKRJHQZLOOEH
SURYLGHGLQWKHPLFUR,77DQG0(SRSXODWLRQV
$OOFDXVHPRUWDOLW\$&0DWDQGGD\VDIWHUWKHILUVWGRVHRIWHVWDUWLFOHZLOOEH
VXPPDUL]HGLQWKH,77SRSXODWLRQ6XEMHFWVZKRDUHORVWWRIROORZXSZLOOEHFRQVLGHUHG
GHFHDVHGIRUWKLVDQDO\VLV$VLGHGXQDGMXVWHG&,IRUWKHREVHUYHGGLIIHUHQFHLQPRUWDOLW\
UDWHVZLOOEHFDOFXODWHGIRU$&0
 $QDO\VLVRI$GGLWLRQDO(IILFDF\9DULDEOHV
$GGLWLRQDOHIILFDF\DQDO\VHVZLOOEHFRQGXFWHGWRVXSSRUWWKHHIILFDF\ILQGLQJVRIWKHSULPDU\
DQGVHFRQGDU\RXWFRPHV&,VZLOOEHGHWHUPLQHGIRUGHVFULSWLYHSXUSRVHVEXWQRFRQFOXVLRQVRI
1,ZLOOEHPDGH
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVFODVVLILHGDVD&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHDQG
,QGHWHUPLQDWHE\WKH,QYHVWLJDWRU¶V$VVHVVPHQWDW(27LQWKH,77DQG&(SRSXODWLRQVE\
GHILQLWLRQVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHH[FOXGHGIURPWKH&(SRSXODWLRQZLOOEH
FDOFXODWHG$VLGHGXQDGMXVWHG&,ZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQWKH

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

&OLQLFDO6XFFHVVUDWHXVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ

7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKVWDELOL]DWLRQRIYLWDOVLJQVDQGFOLQLFDO
VLJQVODERUDWRU\ILQGLQJVDVVRFLDWHGZLWK&$%3DWKRXUVSRVWILUVWGRVHRIWHVWDUWLFOHZLOO
EHSUHVHQWHGE\WUHDWPHQWJURXSLQWKH,77SRSXODWLRQ7KHVHLQFOXGHWHPSHUDWXUHQRIHYHURU
K\SRWKHUPLD6%3PP+JKHDUWUDWHESP55EUHDWKVPLQXWHV3D2
!PP+JE\$%*SK\VLFDOH[DPILQGLQJVQRILQGLQJVRISXOPRQDU\FRQVROLGDWLRQ:%&
FRXQWFHOOVPPRUFHOOVPPRULPPDWXUHQHXWURSKLOV
$VXPPDU\QXPEHUDQGSHUFHQWDJHRIVXEMHFWVRIWKHDVVHVVPHQWRIFOLQLFDOVLJQVDQG
V\PSWRPVRI&$%3DWHDFKWLPHSRLQWWKURXJKRXWWKHVWXG\ZLOOEHSUHVHQWHGE\WUHDWPHQWJURXS
LQWKH,77SRSXODWLRQ7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKUHVROXWLRQRIVLJQVDQG
V\PSWRPVSUHVHQWDW6FUHHQLQJEDFNWRSUH&$%3VWDWXVZLOODOVREHSURYLGHGE\VWXG\YLVLW
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKQRZRUVHQLQJRIFOLQLFDOV\PSWRPVRI&$%3DQG
ZLWKWKHDEVHQFHRIQHZV\PSWRPVRI&$%3ZLOODOVREHSURYLGHGE\WUHDWPHQWJURXSLQWKH,77
SRSXODWLRQ
7KHSHUVXEMHFWDQGSHUSDWKRJHQPLFURELRORJLFRXWFRPHVZLOOEHSURYLGHGIRUWKHPLFUR,77DQG
0(SRSXODWLRQVDWWKH(27DQG37(YLVLWV7ZRVLGHGXQDGMXVWHG&,VZLOOEHSURYLGHGIRU
WKHGLIIHUHQFHLQSHUVXEMHFWPLFURELRORJLFDOIDYRUDEOHRXWFRPHUDWHV
$FRQFRUGDQFHDQDO\VLVRI(DUO\&OLQLFDO5HVSRQVHDQG,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(LQWKH,77DQDO\VLVVHWZLOODOVREHSUHVHQWHG

6DIHW\2XWFRPH0HDVXUHV
6DIHW\YDULDEOHVLQFOXGHWKHLQFLGHQFHUDWHRI$(VFKDQJHLQYLWDOVLJQV(&*SDUDPHWHUVDQG
ODERUDWRU\WHVWUHVXOWVREWDLQHGGXULQJWKHFRXUVHRIWKHVWXG\)RUVDIHW\DQDO\VHVIRUERWKWKH
)'$DQG(0$VXEMHFWVZLOOEHDQDO\]HGDFFRUGLQJWRWKHWUHDWPHQWDFWXDOO\UHFHLYHG
 $GYHUVH(YHQWV

6XPPDU\WDEOHVZLOOEHSURYLGHGIRUDOOWUHDWPHQWHPHUJHQWDGYHUVHHYHQWV7($(V$7($(
LVGHILQHGDVDQ$(ZLWKDVWDUWGDWHDQGWLPHRQRUDIWHUWKHILUVWGRVHRIWHVWDUWLFOH$(VZLOOEH
FRGHGXVLQJWKH0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV0HG'5$DQGZLOOEH
VXPPDUL]HGE\SUHVHQWLQJWKHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVKDYLQJHDFK7($(IRUHDFK
WUHDWPHQWJURXSE\V\VWHPRUJDQFODVV62&DQGSUHIHUUHGWHUP37$GGLWLRQDOWDEXODWLRQV
ZLOOSURYLGHVXPPDULHVE\62&DQG37RIVXEMHFWVH[SHULHQFLQJ6$(VVHYHUH7($(V7($(V
MXGJHGWREHUHODWHGWRWHVWDUWLFOH7($(VOHDGLQJWRGLVFRQWLQXDWLRQRIWHVWDUWLFOH7($(V
OHDGLQJWRGRVHLQWHUUXSWLRQRIWHVWDUWLFOHDQG7($(VRIVSHFLDOLQWHUHVW
 9LWDO6LJQV

7KHIROORZLQJYDULDEOHVZLOOEHDQDO\]HGGHVFULSWLYHO\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x 9LWDOVLJQVV\VWROLFDQGGLDVWROLF%3SXOVHUDWHERG\WHPSHUDWXUH55LQFOXGLQJFKDQJH
IURP6FUHHQLQJE\YLVLW
x &OLQLFDOO\QRWDEOHYLWDOVLJQVPHHWLQJSUHGHILQHGFULWHULDDVVSHFLILHGLQWKH6$3E\YLVLW

6XEMHFWVZLWKQRWDEOHYLWDOVLJQVGDWDZLOOEHOLVWHG
 (OHFWURFDUGLRJUDPV

(OHFWURFDUGLRJUDPGDWD55LQWHUYDO35LQWHUYDO456LQWHUYDO&RUUHFWHG47LQWHUYDO>47F@
47F%D]]HWW¶V&RUUHFWLRQ)RUPXOD>47F%@DQG47F)ULGHULFLD¶V&RUUHFWLRQ)RUPXOD>47F)@
ZLOOEHVXPPDUL]HGGHVFULSWLYHO\DWHDFKVFKHGXOHGHYDOXDWLRQDQGIRUWKHRYHUDOOZRUVWSRVW
6FUHHQLQJYDOXH&KDQJHVIURP6FUHHQLQJDWHDFKYLVLWZLOODOVREHSURYLGHG$QRXWOLHU
DQDO\VLVZLOOEHFRQGXFWHGEDVHGRQWKHZRUVWSRVW6FUHHQLQJYDOXH
 /DERUDWRU\7HVWV

7KHIROORZLQJYDULDEOHVZLOOEHDQDO\]HGGHVFULSWLYHO\
x /DERUDWRU\YDULDEOHVE\YLVLW
x &KDQJHIURP6FUHHQLQJRIODERUDWRU\YDULDEOHE\YLVLW
x &OLQLFDOO\QRWDEOHODERUDWRU\YDOXHVPHHWLQJSUHGHILQHGFULWHULDVSHFLILHGLQWKH6$3E\
YLVLW

/LVWLQJVRILQGLYLGXDOVXEMHFWODERUDWRU\GDWDZLOOEHJHQHUDWHG9DOXHVPHHWLQJSUHGHILQHG
FULWHULDIRUEHLQJFOLQLFDOO\QRWDEOHZLOOEHIODJJHGZLWKLQWKHOLVWLQJV

5HVRXUFH8WLOL]DWLRQ
'DWDIRUUHVRXUFHXWLOL]DWLRQZLOOEHFROOHFWHGWKURXJKWKH)LQDO)ROORZXSDVVHVVPHQWDQGZLOO
LQFOXGH
x QXPEHURIGD\VLQKRVSLWDOIURPWKHWLPHRILQLWLDWLRQRIWKHUDS\LQLWLDWLRQRIVHFRQGWKHUDS\
DVZHOODVIURPWKHILUVWGD\LQKRVSLWDOWRGDWHRIGLVFKDUJHIRUDOOVXEMHFWVDQGE\FRXQWU\
GXHWRWKHYDU\LQJFOLQLFDOSUDFWLFHVSHUFRXQWU\
x GXUDWLRQGD\VDQGQXPEHURIGRVHVRQLYWKHUDS\WHVWDUWLFOH
x GXUDWLRQGD\VDQGQXPEHURIRXWSDWLHQWLYGRVHVSHUW\SHRIIDFLOLW\WHVWDUWLFOH
x GXUDWLRQGD\VDQGQXPEHURIGRVHVRQSRWKHUDS\WHVWDUWLFOH
'HVFULSWLYHVWDWLVWLFVIRUWKHUHVRXUFHXWLOL]DWLRQSDUDPHWHUVZLOOEHSURYLGHGE\WUHDWPHQWJURXS
IRUWKHSXUSRVHRIKHDOWKHFRQRPLFHYDOXDWLRQ

3KDUPDFRNLQHWLFV
3RSXODWLRQ3.DQDO\VLVZLOOEHFRQGXFWHGWRFKDUDFWHUL]H3.SDUDPHWHUV$SRSXODWLRQ3.GDWD
VHWLQFOXGLQJVXEMHFWVZLWKRUPRUHTXDQWLILHGRPDGDF\FOLQHFRQFHQWUDWLRQGHWHUPLQDWLRQVZLOO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

EHFRQVWUXFWHGIURPWKHGDWHVDQGWLPHVRIWKHGRVHVDQGEORRGVDPSOHVDORQJZLWKDOOWKH
ELRDQDO\WLFDOGHWHUPLQDWLRQVDQGVXEMHFWEDFNJURXQGLQIRUPDWLRQ,IWKHDFWXDOGDWHRUWLPHIRUD
EORRGVDPSOHRUGRVHLVPLVVLQJWKHUHODWHGELRDQDO\WLFDOGHWHUPLQDWLRQRIWKH3.FRQFHQWUDWLRQ
ZLOOEHH[FOXGHGIURPDOODQDO\VHV2PDGDF\FOLQHFRQFHQWUDWLRQVEHORZWKHOLPLWRI
TXDQWLILFDWLRQZLOOEHWUHDWHGDVPLVVLQJGDWDLQVXPPDU\VWDWLVWLFVDQGIRUWKHFDOFXODWLRQRI3.
SDUDPHWHUV
9DULDEOHVLQFOXGLQJDJH\HDUVERG\ZHLJKWNJJHQGHUDQGUDFHHWKQLFLW\DORQJZLWKRWKHU
FRYDULDWHVSUHYLRXVO\GHWHUPLQHGWREHLPSRUWDQWZLOOEHLQFRUSRUDWHGLQWRWKHSRSXODWLRQ3.
GDWDEDVH%DVHGRQWKHVXEMHFWVLQWKHSRSXODWLRQDQDO\VLVGDWDVHWGHVFULSWLYHVXPPDULHVDW
6FUHHQLQJIRUWKHVHYDULDEOHVZLOOEHUHSRUWHG2XWOLHUVPD\EHH[FOXGHGIURPWKHDQDO\VLV
7KHVHZLOOEHGHWHUPLQHGE\DVFDWWHUSORWRIWKHREVHUYHGFRQFHQWUDWLRQYHUVXVWLPHSRVWGRVH
DQGUHSRUWHG7KHGLVWULEXWLRQRIWKHQXPEHURIVDPSOHVFRQWULEXWHGSHUVXEMHFWWRWKH
PRGHOEDVHGDQDO\VLVZLOOEHWDEXODWHG$OVRVLPSOHVXPPDU\GHVFULSWLYHVWDWLVWLFVIRUWKH
FRQFHQWUDWLRQRIVDPSOHVE\VWXG\GD\RUZHHNZLOOEHFRPSXWHG
 3RSXODWLRQ3.0RGHOLQJ

5HVXOWVIURP3KDVHVWXGLHVLQGLFDWHWKDWRPDGDF\FOLQH3.LVOLQHDUDQGWKDWIROORZLQJLY
LQIXVLRQSODVPDFRQFHQWUDWLRQWLPHSURILOHVVKRZDFRPSDUWPHQWDOGLVSRVLWLRQ7KHUHIRUHWKH
SUREDEOHVWUXFWXUDO3.PRGHOZRXOGEHDFRPSDUWPHQWPRGHOZLWK]HURRUGHULQSXWIRULY
LQIXVLRQDQGILUVWRUGHULQSXWIRUSRDGPLQLVWUDWLRQ7KLV3.PRGHOFRQWDLQVWKHSDUDPHWHUV
FOHDUDQFHYROXPHRIGLVWULEXWLRQELRDYDLODELOLW\DQGDEVRUSWLRQUDWHFRQVWDQW7KHDVVRFLDWHG
SRSXODWLRQPRGHOVDUHQRQOLQHDUPL[HGHIIHFWVPRGHOV7KHSRSXODWLRQPRGHODGGVUDQGRP
HIIHFWVDQGFRYDULDWHVIRUWKH3.SDUDPHWHUVLQRUGHUWRUHFRJQL]HGLIIHUHQFHVDPRQJLQGLYLGXDOV
DQGVLPLODULWLHVDFURVVREVHUYDWLRQVFRUUHVSRQGLQJWRWKHVDPHVXEMHFW$WWKHWLPHRIWKH
SRSXODWLRQPRGHOLQJSUHYLRXVO\UHSRUWHGVWUXFWXUDO3.PRGHOVZLOOEHFRQVLGHUHGILUVW$
UHVLGXDOHUURUPRGHOFRPELQLQJDGGLWLYHHUURUDQGSURSRUWLRQDOHUURUZLOODOVREHLQLWLDOO\
FRQVLGHUHG6LPSOLILFDWLRQVHJIHZHUUDQGRPHIIHFWVRUDQDOWHUQDWLYHUHVLGXDOHUURUPRGHO
PD\EHDSSURSULDWHLIWKHGLDJQRVWLFVIRUWKHPRGHOVXJJHVWIDOVHFRQYHUJHQFH$GGLWLRQDO
FRYDULDWHVZLOOEHLQYHVWLJDWHGJUDSKLFDOO\JHQGHUUDFHHWKQLFLW\DJHDVSDUWRIWKHPRGHO
GLDJQRVWLFVDQGVRPHPD\EHUHWDLQHGLQWKHILQDOPRGHODQGDGGLWLRQDORQHVLQDFRPSHWLQJ
PRGHOWRGHOLYHUHVWLPDWHVRIDUJXDEO\LQVLJQLILFDQWHIIHFWV6FDWWHUSORWVRIWKHREVHUYHG
FRQFHQWUDWLRQVYHUVXVSRSXODWLRQHVWLPDWHGDQGLQGLYLGXDOO\HVWLPDWHGFRQFHQWUDWLRQVZLOOEH
XVHGDVSDUWRIWKHRYHUDOODVVHVVPHQWRIWKHRYHUDOOTXDOLW\RIWKHILW'XULQJPRGHOLQJWKH
EURDGSULQFLSOHVRXWOLQHGE\WKH)'$ZLOOEHIROORZHG)'$
7KHLQGLYLGXDOPRGHOEDVHGH[SRVXUHPHDVXUHVDWVWHDG\VWDWHDUHDXQGHUWKH
&RQFHQWUDWLRQ7LPHFXUYH>$8&VV@WLPHWRPD[LPXPSODVPDFRQFHQWUDWLRQ>7PD[VV@
PD[LPXPSODVPDFRQFHQWUDWLRQ>&PD[VV@ZLOOEHFRPSXWHGDQGVXPPDUL]HG

3KDUPDFRJHQHWLFV3KDUPDFRJHQRPLFV
3KDUPDFRJHQHWLFVSKDUPDFRJHQRPLFVVWXGLHVDUHQRWSODQQHGDVSDUWRIWKLVSURWRFRO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'


%LRPDUNHUV
1RWDSSOLFDEOH

3.3'
7KHUHODWLRQVKLSEHWZHHQRPDGDF\FOLQHH[SRVXUHDQGUHVSRQVHHIILFDF\DQGVDIHW\ZLOOEH
H[DPLQHGDVDSSURSULDWHIRUWKHGDWD$SRSXODWLRQ3.PRGHOZLOOEHXVHGWRFDOFXODWH
LQGLYLGXDOVXEMHFW$8&VDQGVXEVHTXHQWO\SRVVLEOH$8&0,&EUHDNSRLQWV
 6DPSOH6L]H&DOFXODWLRQ
7KHVWXG\LVGHVLJQHGWRVKRZ1,LQWKHSULPDU\HIILFDF\RXWFRPHRI(DUO\&OLQLFDO5HVSRQVHDW
KRXUVIROORZLQJWKHILUVWGRVHRIWHVWDUWLFOHLQWKH,77SRSXODWLRQ$Q1,PDUJLQRI
ZLOOEHXVHGIRUWKHDQDO\VLVLQWKH,77SRSXODWLRQ7KH1,PDUJLQZDVEDVHGRQDQDQDO\VLVRI
WKHKLVWRULFDOGDWDUHJDUGLQJWKHWUHDWPHQWHIIHFWRIDQWLELRWLFVLQSQHXPRQLD
,QWKHFHIWDUROLQHFOLQLFDOVWXGLHVZKLFKHQUROOHGRQO\32575LVN&ODVV,,,DQG,9WKHUDWHVIRU
FOLQLFDOVXFFHVVEDVHGRQ,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(YLVLWUDQJHG
IURPLQWKHPRGLILHG,77DQG&(SRSXODWLRQVZLWKWKHUDWHVLQWKHPRGLILHG,77
SRSXODWLRQORZHUWKDQWKRVHLQWKH&(SRSXODWLRQ7HIODURIXOOSUHVFULELQJLQIRUPDWLRQ
7KXVLWLVUHDVRQDEOHWRDVVXPHFOLQLFDOVXFFHVVUDWHVRILQWKH,77DQGLQWKH&(
SRSXODWLRQV
)RUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQWLQWKH,77SRSXODWLRQ
32575LVN&ODVV,,,DQG,9DVVXPLQJDQRXWFRPHUDWHRILQERWKWUHDWPHQWJURXSV1,
PDUJLQRISRZHUDQGDVLGHGDOSKDOHYHORIVLQFH&$%3VWXG\LVEHLQJ
FRQGXFWHGXVLQJWKHVDPSOHVL]HGHWHUPLQDWLRQPHWKRGRI)DUULQJWRQDQG0DQQLQJ)DUULQJWRQ
DQG0DQQLQJDWRWDORIVXEMHFWV32575LVN&ODVV,,,DQG,9DUHUHTXLUHG
$VVXPLQJDQHYDOXDELOLW\UDWHVXEMHFWVZLOOEHDYDLODEOHLQWKH&(SRSXODWLRQ
$VVXPLQJDQUHVSRQVHUDWHLQERWKWUHDWPHQWJURXSVD1,PDUJLQVLGHGDOSKDOHYHO
RIWKHUHLVSRZHUWRVKRZ1,IRU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW
37(LQWKH&(SRSXODWLRQ,IRIVXEMHFWVDUHLQ32575LVN&ODVV,,DWRWDORIVXEMHFWV
DUHUHTXLUHG
1RFOLQLFDOVWXG\KDVEHHQFRQGXFWHGXVLQJ(DUO\&OLQLFDO5HVSRQVHDVWKHSULPDU\HIILFDF\
RXWFRPH+RZHYHUUHWURVSHFWLYHDQDO\VHVRIFOLQLFDOVWXG\GDWD7DOERWHWDOLQGLFDWH
WKHSRLQWHVWLPDWHVIRU(DUO\&OLQLFDO5HVSRQVHDW'D\UDQJHIURP7KXVLWLV
UHDVRQDEOHWRDVVXPHWKDWLQDSURVSHFWLYHVWXG\RIVXEMHFWVZLWKPRGHUDWHWRVHYHUH&$%3WKH
UDWHRI&OLQLFDO6XFFHVVDWDQHDUO\WLPHSRLQWZLOOEHDSSUR[LPDWHO\
)RUWKH(DUO\&OLQLFDO5HVSRQVHSULPDU\HIILFDF\HQGSRLQWZLWKVXEMHFWVLQWKH,77
SRSXODWLRQDUHVSRQVHUDWHRIIRUERWKWUHDWPHQWJURXSV1,PDUJLQRIDVLGHGDOSKD
OHYHORIWKHUHLVDSRZHUWRVKRZ1,$VVXPLQJWKHPLFURELRORJLFDOHYDOXDELOLW\UDWH
LVDWRWDORIVXEMHFWVDUHH[SHFWHGWREHLQWKHPLFUR,77SRSXODWLRQ

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7KXVVXEMHFWVSURYLGHVVXIILFLHQWSRZHUIRUWKHSULPDU\HIILFDF\DQDO\VHVIRUERWKWKH)'$
DQG(0$UHJXODWRU\DXWKRULWLHV$VXPPDU\RIWKHVDPSOHVL]HFDOFXODWLRQVDQGDVVXPSWLRQVLV
SURYLGHGLQ7DEOH
7DEOH
6DPSOH6L]HDQG3RZHU&DOFXODWLRQV

3ULPDU\2XWFRPH
(DUO\&OLQLFDO
5HVSRQVH
6HFRQGDU\
2XWFRPH(DUO\
&OLQLFDO5HVSRQVH
6HFRQGDU\2XWFRPH,QYHVWLJDWRU¶V
$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW
37(
3RSXODWLRQ
,77
PLFUR,77
,77
&(
1,0DUJLQ




(YDOXDELOLW\5DWH
1$

1$

2XWFRPH5DWH




32575LVN&ODVV,,
1$
1$


1




3RZHU




&( FOLQLFDOO\HYDOXDEOH,77 LQWHQWWRWUHDWPLFUR,77 PLFURELRORJLFDOLQWHQWWRWUHDW1 QXPEHU1$ QRW
DSSOLFDEOH1, QRQLQIHULRULW\37( SRVWWKHUDS\HYDOXDWLRQ
 ,QWHULP$QDO\VHV
1RLQWHULPDQDO\VHVRIHIILFDF\DUHSODQQHG+RZHYHUD'60&ZLOOUHYLHZVDIHW\GDWDHJ$(V
DQG6$(VODERUDWRU\GDWD(&*DQGYLWDOVLJQVDVVHVVPHQWVDWUHJXODUWLPHSRLQWVZKLOHWKH
VWXG\LVRQJRLQJ
 +DQGOLQJRI0LVVLQJ9DOXHV&HQVRULQJ'LVFRQWLQXDWLRQV
0LVVLQJYDOXHVZLOOQRWEHLPSXWHGIRUSULPDU\DQGVHFRQGDU\HIILFDF\DQGVDIHW\DQDO\VHV
H[FHSWDVGHWDLOHGLQWKH6$3IRUPLVVLQJGDWHVDQGRQO\REVHUYHGYDOXHVZLOOEHXVHGLQGDWD
DQDO\VHVDQGSUHVHQWDWLRQV)RUWKHSULPDU\RXWFRPHPHDVXUHLIDQ\GDWDILHOGQHHGHGWR
GHWHUPLQHWKHUHVSRQVHLVPLVVLQJWKHVXEMHFWZLOOEHDVVLJQHGDQ,QGHWHUPLQDWHUHVSRQVH
6XEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHLQFOXGHGLQWKHGHQRPLQDWRUDQGWKXVDUH
FRQVLGHUHG&OLQLFDO)DLOXUHV$VHQVLWLYLW\DQDO\VLVRIWKHSULPDU\RXWFRPHZLOOEHFRQGXFWHGLQ
ZKLFKVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHFRQVLGHUHG&OLQLFDO6XFFHVVHV
)RUWKHVHFRQGDU\RXWFRPHPHDVXUHRI,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(LQ
WKH,77SRSXODWLRQFRSULPDU\IRU(0$DQDO\VLVVXEMHFWVZLWKPLVVLQJGDWDDUHDVVLJQHGDQ
,QGHWHUPLQDWHUHVSRQVH6XEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHLQFOXGHGLQWKH
GHQRPLQDWRUDQGWKXVDUHFRQVLGHUHGIDLOXUHV7DEOHSURYLGHVDVXPPDU\RIWKHKDQGOLQJRI
PLVVLQJLQGHWHUPLQDWHRXWFRPHVIRUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(
7DEOH
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37('HWHUPLQDWLRQ*LYHQ
0LVVLQJ'DWD

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

(279LVLW
37(9LVLW
2YHUDOO$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(,QYHVWLJDWRU¶V
$VVHVVPHQW
0LVVLQJLQGHWHUPLQDWH
6XFFHVV
,QGHWHUPLQDWH
0LVVLQJLQGHWHUPLQDWH
)DLOXUH
)DLOXUH
0LVVLQJLQGHWHUPLQDWH
0LVVLQJLQGHWHUPLQDWH
,QGHWHUPLQDWH
6XFFHVV
0LVVLQJLQGHWHUPLQDWH
,QGHWHUPLQDWH
)DLOXUH
0LVVLQJLQGHWHUPLQDWH
)DLOXUH
)RUWKHDQDO\VLVLQWKH,77DQDO\VLVVHWRI,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(,QGHWHUPLQDWH
RXWFRPHVDUHLQFOXGHGLQWKHGHQRPLQDWRUDQGDUHWKXVFRQVLGHUHG&OLQLFDO)DLOXUHV
0LVVLQJGDWDDUHKDQGOHGLQDVLPLODUPDQQHUIRUWKHRXWFRPHRIPLFURELRORJLFDOUHVSRQVHDW37(
(27 HQGRIWUHDWPHQW,77 LQWHQWWRWUHDW37( SRVWWKHUDS\HYDOXDWLRQ

 68%-(&7,'(17,),&$7,21
(DFKVXEMHFWLQWKHVWXG\LVDVVLJQHGDXQLTXHVXEMHFWQXPEHUDQGPXVWNHHSWKDWQXPEHU
WKURXJKRXWWKHVWXG\HYHQLIKHVKHWUDQVIHUVWRDQRWKHUVLWH$VXEMHFWZKRGLVFRQWLQXHV
SDUWLFLSDWLRQRULVZLWKGUDZQEHIRUHUHFHLYLQJDWUHDWPHQWDVVLJQPHQWFRGHDQGZKRUHHQUROOVDW
DODWHUWLPHZLOOEHDVVLJQHGDQHZVXEMHFWQXPEHUDQGUHFRUGHGDVUHVFUHHQHG7KHLQYHVWLJDWRU
PXVWPDLQWDLQDVXEMHFWPDVWHUORJRIDOOVXEMHFWV
 7(67$57,&/($&&2817$%,/,7<5(&21&,/,$7,21$1'
5(7851
7KHLQYHVWLJDWRUPXVWPDLQWDLQDFRPSOHWHDQGFXUUHQWGLVSHQVLQJDQGLQYHQWRU\UHFRUGRIWHVW
DUWLFOHWKDWKDVEHHQVXSSOLHGE\WKHVSRQVRU
$OOXQXVHGWHVWDUWLFOHPXVWEHUHWXUQHGLQWKHRULJLQDOFRQWDLQHUV(PSW\WHVWDUWLFOHFRQWDLQHUV
PD\EHGHVWUR\HGDIWHUWKHVSRQVRUKDVSHUIRUPHGDFFRXQWDELOLW\7HVWDUWLFOHGHVWUXFWLRQPXVW
EHGRFXPHQWHGRQWKHGLVSHQVLQJDQGLQYHQWRU\UHFRUG
 6XSSO\6WRUDJHDQG7UDFNLQJRI6WXG\7UHDWPHQW
7HVWDUWLFOHPXVWEHUHFHLYHGE\DGHVLJQDWHGSHUVRQDWWKHVWXG\VLWHKDQGOHGDQGVWRUHGVDIHO\
DQGSURSHUO\DQGNHSWLQDVHFXUHGORFDWLRQWRZKLFKRQO\WKHXQEOLQGHGSKDUPDFLVWRUXQEOLQGHG
VWXG\SHUVRQQHODQGGHVLJQDWHGDVVLVWDQWVKDYHDFFHVV8SRQUHFHLSWDOOWHVWDUWLFOHVKRXOGEH
UHFRQFLOHGZLWKWKHVKLSSLQJLQIRUPDWLRQDQGVWRUHGDFFRUGLQJWRWKHLQVWUXFWLRQVVSHFLILHGRQWKH
PHGLFDWLRQODEHOV&OLQLFDOVXSSOLHVDUHWREHGLVSHQVHGRQO\LQDFFRUGDQFHZLWKWKHSURWRFRO
0HGLFDWLRQODEHOVZLOOEHLQWKHORFDOODQJXDJHDQGFRPSO\ZLWKWKHOHJDOUHTXLUHPHQWVRIHDFK
FRXQWU\,QDGGLWLRQWKH\ZLOOLQFOXGHVWRUDJHFRQGLWLRQVIRUWKHPHGLFDWLRQ

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

7KHXQEOLQGHGSKDUPDFLVWRUGHVLJQHHVKRXOGPDLQWDLQDQDFFXUDWHUHFRUGRIWKHVKLSPHQWDQG
GLVSHQVLQJRIWHVWDUWLFOHLQWKHVWXG\VSHFLILFPHGLFDWLRQDFFRXQWDELOLW\OHGJHU0RQLWRULQJRI
PHGLFDWLRQDFFRXQWDELOLW\ZLOOEHSHUIRUPHGE\WKHXQEOLQGHGILHOGPRQLWRUGXULQJVLWHYLVLWVDQG
DWWKHFRPSOHWLRQRIWKHVWXG\6XEMHFWVZLOOEHDVNHGWRUHWXUQDOOXQXVHGWHVWDUWLFOHDQG
SDFNDJLQJDWHDFKYLVLWDQGDWWKHHQGRIWKHVWXG\ODVWVWXG\YLVLWRUDWWKHWLPHRIWHVWDUWLFOH
GLVFRQWLQXDWLRQ
$WWKHFRQFOXVLRQRIWKHVWXG\DQGDVDSSURSULDWHGXULQJWKHFRXUVHRIWKHVWXG\ZLWKLQVWUXFWLRQ
IURPWKHVSRQVRUWKHXQEOLQGHGSKDUPDFLVWRUGHVLJQHHZLOOGHVWUR\RQVLWHRUUHWXUQXQXVHGWHVW
DUWLFOHSDFNDJLQJPHGLFDWLRQODEHOVDQGDFRS\RIWKHFRPSOHWHGPHGLFDWLRQDFFRXQWDELOLW\
OHGJHUWRWKHPRQLWRURUWRWKHDGGUHVVSURYLGHGWRWKHLQYHVWLJDWRU
 5$1'20,=$7,21$1'%/,1',1*
 7UHDWPHQW$VVLJQPHQW
$OOHOLJLEOHVXEMHFWVZLOOEHUDQGRPL]HGYLDDQ,[56WKDWDVVLJQVWKHPWRRIWKHWUHDWPHQWDUPV
LQDUDWLR7KHVLWHGHOHJDWHZLOOFRQWDFWWKH,[56YLDSKRQHRUZHEDIWHUFRQILUPLQJWKDW
WKHVXEMHFWIXOILOOVDOOWKHLQFOXVLRQFULWHULDDQGQRQHRIWKHH[FOXVLRQFULWHULD7KH,[56ZLOO
DVVLJQDWHVWDUWLFOHWRWKHVXEMHFWEDVHGRQDFRPSXWHUJHQHUDWHGUDQGRPL]DWLRQVFKHGXOH7KH
UDQGRPL]DWLRQZLOOEHDEORFNHGUDQGRPL]DWLRQVHTXHQFHVWUDWLILHGE\32575LVN&ODVV,,RU
,,,,9UHFHLSWRIDQDOORZHGDQWLEDFWHULDOWKHUDS\6HH$SSHQGL[LQWKHKRXUVSULRUWR
VWXG\WUHDWPHQWDQGJHRJUDSKLFUHJLRQDVGHILQHGLQWKH,[56VSHFLILFDWLRQVDQG6$36XEMHFWV
UDQGRPL]HGLQWRWKHVWXG\ZLOOEHDVVLJQHGWKHWUHDWPHQWFRUUHVSRQGLQJWRWKHQH[WDYDLODEOH
QXPEHULQWKHUHVSHFWLYHVWUDWXPRIWKHFRPSXWHUJHQHUDWHGUDQGRPL]DWLRQVFKHGXOH7KH
VXEMHFWLVFRQVLGHUHGUDQGRPL]HGZKHQWKH,[56SURYLGHVWKHWHVWDUWLFOHDVVLJQPHQWUHJDUGOHVV
RIZKHWKHUWKHVXEMHFWDFWXDOO\UHFHLYHVDQ\PHGLFDWLRQ5DQGRPL]DWLRQRIVXEMHFWVZLWKD
32575LVN&ODVVRI,,ZLOOEHFDSSHGDWRIWKHVXEMHFWVUDQGRPL]HG5DQGRPL]DWLRQRI
VXEMHFWVZKRKDYHUHFHLYHGDQDOORZHGDQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQWZLOOEHFDSSHGDWRIWKHVXEMHFWVUDQGRPL]HG
 'LVSHQVLQJWKH7HVW$UWLFOH
(DFKVWXG\VLWHZLOOEHVXSSOLHGE\WKHVSRQVRUZLWKWKHLQYHVWLJDWLRQDOSURGXFWDQGFRPSDUDWRU
7KH,[56ZLOOLQVWUXFWWKHSKDUPDFLVWRUGHVLJQHHDVWRWKHDSSURSULDWHWKHUDS\RPDGDF\FOLQHRU
PR[LIOR[DFLQWREHDGPLQLVWHUHG7KHXQEOLQGHGVLWHSKDUPDFLVWRUGHVLJQHHZLOOSUHSDUHWKH
WHVWDUWLFOHDVLQVWUXFWHG7KHXQEOLQGHGSKDUPDFLVWRUGHVLJQHHZLOOSURYLGHWKHEOLQGHGQXUVH
DGPLQLVWHULQJWKHLQIXVLRQZLWKWKHDSSURSULDWHVROXWLRQVIRUHDFKVXEMHFWFRYHUHGWRFRQFHDOWKH
LGHQWLW\RIWKHWHVWDUWLFOHXVLQJPDWHULDOVSURYLGHGE\WKHVSRQVRUDQGODEHOHGZLWKEOLQGHG
DGPLQLVWUDWLRQLQVWUXFWLRQV7KHSRWHVWDUWLFOHZLOOEHVXSSOLHGWRWKHVLWHVLQNLWVWKDWLQFOXGH
DFWLYHRPDGDF\FOLQHWDEOHWVRUPDWFKHGSODFHERWDEOHWVDQGDFWLYHPR[LIOR[DFLQRYHU
HQFDSVXODWHGWDEOHWVRUPDWFKHGSODFHERRYHUHQFDSVXODWHGWDEOHWV7KHXQEOLQGHGSKDUPDFLVW
ZLOOSURYLGHWKHDSSURSULDWHNLWWRWKHVWXG\FRRUGLQDWRUVWDIIZKRLQVWUXFWVWKHVXEMHFWRQWKHXVH
RISRWHVWDUWLFOH7KHSURFHGXUHVDUHGHWDLOHGLQWKH3KDUPDF\0DQXDO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 7UHDWPHQW%OLQGLQJ
7KHLQYHVWLJDWRUDQGVSRQVRUZLOOEHEOLQGHGWRWUHDWPHQWDUPDVVLJQPHQWVWKURXJKRXWWKHVWXG\
7KHLYDQGSRSKDVHVRIWKHVWXG\ZLOOEHGRXEOHEOLQG
'XULQJWKHLYWUHDWPHQWSHULRGVXEMHFWVDVVLJQHGWRRPDGDF\FOLQHZLOOUHFHLYHWHVWDUWLFOHTK
IRUWKHILUVWGRVHVIROORZHGE\PJLYTKVWDUWLQJKRXUVDIWHUWKHILUVWGRVH6XEMHFWV
DVVLJQHGWRPR[LIOR[DFLQZLOOUHFHLYHWHVWDUWLFOHTKZLWKDVLQJOHSODFHERLQIXVLRQWKH
VXEMHFW¶VVHFRQGLQIXVLRQKRXUVDIWHUWKHILUVWGRVHWRPDWFKWKHRPDGDF\FOLQHGRVLQJ
UHJLPHQVHH7DEOH
%HFDXVHWKHFRORURIWKHLYWHVWDUWLFOHLQIXVLRQVDQGSODFHERLQIXVLRQVGLIIHUDOOLQIXVLRQEDJV
DQGLYWXELQJZLOOEHFRYHUHGZLWKPDWHULDOVSURYLGHGE\WKHVSRQVRUVRWKDWVXEMHFWVDQGEOLQGHG
VWXG\SHUVRQQHOZLOOQRWNQRZWKHLGHQWLW\RIWKHWHVWDUWLFOHEHLQJDGPLQLVWHUHG7KHLQIXVLRQ
UHJLPHQZLOOIROORZDGRXEOHGXPP\GHVLJQZLWKVXEMHFWVLQHDFKVWXG\DUPUHFHLYLQJWKHVDPH
LQIXVLRQYROXPHVZLWKWKHVDPHDGPLQLVWUDWLRQLQVWUXFWLRQV%OLQGHGVWXG\SHUVRQQHOZLOO
DGPLQLVWHUWKHLQIXVLRQVDQGFROOHFWUHYLHZDQGHQWHUGDWDUHJDUGLQJWKHLYLQIXVLRQVHJVWDUW
DQGVWRSWLPHVLQWRDQH&5),IJUDYLW\DGPLQLVWUDWLRQLVQRWWKHVWDQGDUGRIFDUHWKHQDQ
LQIXVLRQSXPSPD\EHXVHG,IDQLQIXVLRQSXPSLVXVHGWKHQDSRWHQWLDOO\XQEOLQGHG
DGPLQLVWUDWRUZLOOEHUHTXLUHG3HUVRQQHOLGHQWLILHGDVSRWHQWLDOO\XQEOLQGHGDGPLQLVWUDWRUV
VKRXOGQRWSDUWLFLSDWHLQDQ\VWXG\SURFHGXUHVRWKHUWKDQLYDGPLQLVWUDWLRQRIWHVWDUWLFOHDQGWKH
FROOHFWLRQUHYLHZDQGHQWU\RILYUHODWHGGDWDHJVWDUWDQGVWRSWLPHVLQWRDQH&5)
'XULQJWKHSRSKDVHDGRXEOHGXPP\GHVLJQZLOODOVREHXVHGWRHQVXUHWKHEOLQG6XEMHFWVRQ
WKHRPDGDF\FOLQHDUPDFWLYHRPDGDF\FOLQHWDEOHWVDQGRYHUHQFDSVXODWHGPR[LIOR[DFLQSODFHER
WDEOHWV6XEMHFWVRQWKHPR[LIOR[DFLQDUPZLOOUHFHLYHRPDGDF\FOLQHSODFHERWDEOHWVDQGRYHU
HQFDSVXODWHGDFWLYHPR[LIOR[DFLQWDEOHWV
7KHXQEOLQGHGVRXUFHGRFXPHQWDWLRQELQGHUFRQWDLQLQJDOOGHVFULSWLRQVRISKDUPDF\SUHSDUDWLRQV
DQGLQIXVLRQVRUGLVWULEXWLRQVRIWHVWDUWLFOHDQGDQ\XQEOLQGHGVXEMHFWUDQGRPL]DWLRQGDWDVKRXOG
EHVWRUHGVHSDUDWHO\DQGXQGHUORFNDQGNH\IURPWKHGRFXPHQWVFRQWDLQLQJEOLQGHG
LQIRUPDWLRQ
5DQGRPL]DWLRQGDWDDUHNHSWVWULFWO\FRQILGHQWLDOXQWLOWKHWLPHRIGDWDEDVHORFNDQGXQEOLQGLQJ
DWWKHHQGRIWKHVWXG\
$OOH&5)VPXVWEHFRPSOHWHGHQWHUHGDQGFKHFNHGDOOVDIHW\ODERUDWRU\UHVXOWVPXVWKDYHEHHQ
UHSRUWHGDOO$(VPXVWKDYHEHHQIXOO\FKDUDFWHUL]HGHJUHODWLRQVKLSWRWHVWDUWLFOHGHWHUPLQHG
DQGFRGHGDQGDOOTXHULHVPXVWKDYHEHHQUHVROYHGSULRUWRGDWDEDVHORFNDQGXQEOLQGLQJ
'HWHUPLQDWLRQRILQFOXVLRQLQWKHDQDO\VLVSRSXODWLRQVFKDUDFWHUL]DWLRQRISURWRFROGHYLDWLRQVDV
PDMRUPLQRUDQGILQDODSSURYDORIWKH6$3ZLOODOVREHFRPSOHWHGSULRUWRGDWDEDVHORFN
'DWDWKDWFRXOGSRWHQWLDOO\OHDGWRXQEOLQGLQJZLOOQRWEHDFFHVVLEOHWRDQ\RQHRWKHUWKDQWKH
IROORZLQJVLWHSHUVRQQHO

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x XQEOLQGHGVWXG\SKDUPDFLVWRUGHVLJQHH
x XQEOLQGHGVWXG\PRQLWRU
x SRWHQWLDOO\XQEOLQGHGDGPLQLVWUDWRUV

3ODVPDVDPSOHVIRUVXEMHFWVUHFHLYLQJRPDGDF\FOLQHPD\EHDQDO\]HGGXULQJWKHFRXUVHRIWKH
VWXG\7RSHUPLWWKHVSRQVRUWRUHYLHZWKHGUXJFRQFHQWUDWLRQGDWDSULRUWRORFNLQJWKHGDWDVHW
DQGZLWKRXWXQEOLQGLQJDQ\3.GDWDSURYLGHGSULRUWRXQEOLQGLQJZLOOEHUHFRGHGE\WKH
ELRDQDO\WLFDOODERUDWRU\WRDYRLGUHYHDOLQJWKHLQGLYLGXDOVXEMHFWQXPEHUV
8QEOLQGLQJLVRQO\WRRFFXULQWKHFDVHRIVXEMHFWHPHUJHQFLHVVHH6HFWLRQDQGDWWKH
FRQFOXVLRQRIWKHVWXG\
 (PHUJHQF\8QEOLQGLQJRI7UHDWPHQW$VVLJQPHQW
(PHUJHQF\XQEOLQGLQJVKRXOGRQO\EHXQGHUWDNHQZKHQLWLVHVVHQWLDOWRWUHDWWKHVXEMHFWVDIHO\
DQGHIILFDFLRXVO\0RVWRIWHQWHVWDUWLFOHGLVFRQWLQXDWLRQDQGNQRZOHGJHRIWKHSRVVLEOH
WUHDWPHQWDVVLJQPHQWVDUHVXIILFLHQWWRWUHDWDVWXG\VXEMHFWZKRSUHVHQWVZLWKDQHPHUJHQF\
FRQGLWLRQ,WLVVWURQJO\HQFRXUDJHGIRUWKHLQYHVWLJDWRUZKHQFRQWHPSODWLQJXQEOLQGLQJWR
FRQWDFWWKHVSRQVRURUVSRQVRU¶VGHVLJQDWHG0HGLFDO0RQLWRURUGHVLJQHHWRFRQILUPWKHQHHGWR
XQEOLQGSULRUWRXQEOLQGLQJ
(PHUJHQF\FRGHEUHDNVDUHSHUIRUPHGXVLQJWKH,[56:KHQWKHLQYHVWLJDWRUFRQWDFWVWKH
V\VWHPWRXQEOLQGDVXEMHFWKHVKHPXVWSURYLGHWKHUHTXHVWHGVXEMHFWLGHQWLI\LQJLQIRUPDWLRQ
DQGFRQILUPWKHQHFHVVLW\WRXQEOLQGWKHVXEMHFW7KHLQYHVWLJDWRUZLOOWKHQUHFHLYHGHWDLOVRIWKH
GUXJWUHDWPHQWIRUWKHVSHFLILHGVXEMHFWDQGDID[RUHPDLOFRQILUPLQJWKDWWKHWUHDWPHQW
DVVLJQPHQWRIWKHVXEMHFWZDVXQEOLQGHG7KHV\VWHPZLOODXWRPDWLFDOO\LQIRUPWKHVSRQVRU¶V
PRQLWRUIRUWKHVLWHDQGWKHVSRQVRUWKDWWKHFRGHKDVEHHQEURNHQ
,WLVWKHLQYHVWLJDWRU¶VUHVSRQVLELOLW\WRHQVXUHWKDWWKHUHLVDSURFHGXUHLQSODFHWRDOORZDFFHVVWR
WKH,[56FRGHEUHDNLQIRUPDWLRQLQFDVHRIHPHUJHQF\7KHLQYHVWLJDWRUZLOOLQIRUPWKHVXEMHFW
KRZWRFRQWDFWKLVKHUEDFNXSLQFDVHVRIHPHUJHQF\ZKHQKHVKHLVXQDYDLODEOH7KH
LQYHVWLJDWRUZLOOSURYLGHSURWRFROQXPEHUWHVWDUWLFOHQDPHLIDYDLODEOHVXEMHFWQXPEHUDQG
LQVWUXFWLRQVIRUFRQWDFWLQJWKHVSRQVRURUDQ\HQWLW\WRZKLFKLWKDVGHOHJDWHGUHVSRQVLELOLW\IRU
HPHUJHQF\FRGHEUHDNVWRWKHVXEMHFWLQFDVHHPHUJHQF\XQEOLQGLQJLVUHTXLUHGDWDWLPHZKHQ
WKHLQYHVWLJDWRUDQGEDFNXSDUHXQDYDLODEOH
,QWKHHYHQWRIDPHGLFDOHPHUJHQF\LQZKLFKWKHLQYHVWLJDWRUMXGJHVWKDWWKHVXEMHFWFDQQRWEH
PDQDJHGVDIHO\ZLWKRXWXQEOLQGLQJWKHLQYHVWLJDWRUPD\REWDLQWKHWUHDWPHQWDOORFDWLRQGLUHFWO\
IURPWKHUHVHDUFKSKDUPDFLVWRUGHVLJQHH$OOVWHSVRXWOLQHGDERYHZLOOEHIROORZHGLQFOXGLQJ
FRQWDFWLQJWKH0HGLFDO0RQLWRUDVVRRQDVSRVVLEOHDQGQRWPRUHWKDQKRXUVDIWHUZDUGV,W
ZLOOEHWKHUHVSRQVLELOLW\RIDOOVWXG\SHUVRQQHOWRHQVXUHWKDWH[FHSWIRUWKHDERYHSURFHGXUH
LQYHVWLJDWRUEOLQGLQJLVPDLQWDLQHGXQWLODIWHUVWXG\FRPSOHWLRQ

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 68%-(&7',6&217,18$7,2125:,7+'5$:$/
5HDVRQVZK\DVXEMHFWPD\GLVFRQWLQXHRUEHZLWKGUDZQIURPWKHVWXG\LQFOXGHEXWDUHQRW
OLPLWHGWR$(VXEMHFWUHTXHVWSURWRFROYLRODWLRQVXEMHFWQRQFRPSOLDQFHDQGVWXG\WHUPLQDWLRQ
E\WKHVSRQVRU6XEMHFWVPD\YROXQWDULO\ZLWKGUDZIURPWKHVWXG\IRUDQ\UHDVRQDWDQ\WLPH
6XEMHFWVDUHFRQVLGHUHGZLWKGUDZQIURPWKHVWXG\LIWKH\VWDWHDQLQWHQWLRQWRZLWKGUDZRUIDLOWR
UHWXUQIRUYLVLWVRUEHFRPHORVWWRIROORZXSIRUDQ\RWKHUUHDVRQ,ISUHPDWXUHZLWKGUDZDOIURP
WKHVWXG\RFFXUVIRUDQ\UHDVRQWKHLQYHVWLJDWRUVKRXOGGHWHUPLQHWKHSULPDU\UHDVRQIRUD
VXEMHFW¶VSUHPDWXUHZLWKGUDZDOIURPWKHVWXG\DQGUHFRUGWKLVLQIRUPDWLRQRQWKHH&5)
6XEMHFWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWXQOHVVWKDWVXEMHFWZLWKGUDZVLQIRUPHGFRQVHQW
VKRXOG127EHFRQVLGHUHGZLWKGUDZQIURPWKHVWXG\7KHGDWHDQGSULPDU\UHDVRQIRU
GLVFRQWLQXDWLRQRIVWXG\WUHDWPHQWVKRXOGEHUHFRUGHGLQVRXUFHGRFXPHQWV6XEMHFWVZKR
GLVFRQWLQXHWKHVWXG\WUHDWPHQWVKRXOGKDYHWKH(27YLVLWDQGWKHSURFHGXUHVOLVWHGIRUWKDWYLVLW
LQWKH678'<)/2:&+$57D37(YLVLWDQGD)LQDO)ROORZXSDVVHVVPHQWLISRVVLEOH7KH
VLWHVKRXOGDOVRFROOHFWVXEMHFWVDIHW\LQIRUPDWLRQWKURXJKWKH)LQDO)ROORZXSDVVHVVPHQW
6LWHSHUVRQQHOVKRXOGDOVRFRQWDFWWKH,[56WRUHJLVWHUWKHVXEMHFW¶VGLVFRQWLQXDWLRQIURPWHVW
DUWLFOH
)RUVXEMHFWVZKRDUHORVWWRIROORZXSWKHLQYHVWLJDWRUVKRXOGVKRZGXHGLOLJHQFHE\
GRFXPHQWLQJLQWKHVRXUFHGRFXPHQWVVWHSVWDNHQWRFRQWDFWWKHVXEMHFWHJGDWHVRIWHOHSKRQH
FDOOVUHJLVWHUHGOHWWHUVHWF
6XEMHFWVZKRDUHSUHPDWXUHO\ZLWKGUDZQIURPWKHVWXG\ZLOOQRWEHUHSODFHGE\DQHTXDOQXPEHU
RIQHZO\HQUROOHGVXEMHFWV
 678'<6863(16,217(50,1$7,21$1'&203/(7,21
 6WXG\&RPSOHWLRQDQG3RVW6WXG\7HVW$UWLFOH
$VXEMHFWZLOOKDYHVXFFHVVIXOO\FRPSOHWHGWKHVWXG\DIWHUSODQQHGLYDQGSRWHVWDUWLFOHKDVEHHQ
DGPLQLVWHUHGDQGDOODVVHVVPHQWVDQGYLVLWVKDYHEHHQPDGH9LVLWVLQFOXGHWKHILQDOIROORZXS
YLVLW)LQDO)ROORZXS7KHVWXG\ZLOOEHFRPSOHWHGZKHQWKHODVWVXEMHFWKDVHLWKHU
GLVFRQWLQXHGRUFRPSOHWHGWKH)LQDO)ROORZXSYLVLW
1RORQJWHUPIROORZXSRIVXEMHFWVLVSODQQHGZLWKWKHH[FHSWLRQRISUHJQDQFLHVDVGHVFULEHGLQ
6HFWLRQDQG6$(VGHVFULEHGLQ6HFWLRQ
6LWHVZLOOEHQRWLILHGE\HLWKHUWKHVSRQVRURU,[56WRVWRSHQUROOPHQWZKHQWKHGHVLUHGQXPEHU
RIWUHDWHGVXEMHFWVKDYHEHHQHQUROOHG6XEMHFWVDOUHDG\FRQVHQWHGZLOOEHDOORZHGWRFRQWLQXHLQ
WKHVWXG\
8SRQVWXG\FRPSOHWLRQWKHLQYHVWLJDWRUZLOOSURYLGHWKHVSRQVRU,5%,(&DQGUHJXODWRU\
DJHQF\ZLWKILQDOUHSRUWVDQGVXPPDULHVDVUHTXLUHGE\UHJXODWLRQV7KHLQYHVWLJDWRUPXVW

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

VXEPLWDZULWWHQUHSRUWWRWKHVSRQVRUDQGWKH,5%,(&ZLWKLQPRQWKVDIWHUWKHFRPSOHWLRQRU
WHUPLQDWLRQRIWKHVWXG\$VDPSOHRIWKLVILQDOVWXG\UHSRUWFDQEHIRXQGLQWKH6WXG\5HIHUHQFH
0DQXDO
 6WXG\6XVSHQVLRQRU7HUPLQDWLRQ
7KHVSRQVRUPD\VXVSHQGRUWHUPLQDWHWKHVWXG\RUSDUWRIWKHVWXG\DWDQ\WLPHIRUDQ\UHDVRQ
6KRXOGWKLVEHQHFHVVDU\VXEMHFWVVKRXOGEHVHHQDVVRRQDVSRVVLEOHDQGWUHDWHGDVGHVFULEHGLQ
6HFWLRQIRUSUHPDWXUHO\ZLWKGUDZQVXEMHFWV7KHLQYHVWLJDWRUPD\EHLQIRUPHGRIDGGLWLRQDO
SURFHGXUHVWREHIROORZHGLQRUGHUWRHQVXUHWKDWDGHTXDWHFRQVLGHUDWLRQLVJLYHQWRWKH
SURWHFWLRQRIWKHVXEMHFW¶VLQWHUHVWV7KHLQYHVWLJDWRUZLOOEHUHVSRQVLEOHIRULQIRUPLQJ,5%V
DQGRU,QGHSHQGHQW(WKLFV&RPPLWWHHV(&VRIWKHHDUO\WHUPLQDWLRQRIWKHVWXG\
,IWKHLQYHVWLJDWRUVXVSHQGVRUWHUPLQDWHVWKHVWXG\WKHLQYHVWLJDWRUZLOOSURPSWO\LQIRUPWKH
VSRQVRUDQGWKH,5%,(&DQGSURYLGHWKHPZLWKDGHWDLOHGZULWWHQH[SODQDWLRQ6XEMHFWVVKRXOG
EHVHHQDVVRRQDVSRVVLEOHDQGWUHDWHGDVGHVFULEHGLQ6HFWLRQIRUSUHPDWXUHO\ZLWKGUDZQ
VXEMHFWV7KHLQYHVWLJDWRUZLOODOVRUHWXUQDOOWHVWDUWLFOHFRQWDLQHUVDQGRWKHUVWXG\PDWHULDOVWR
WKHVSRQVRU
 (7+,&$/&216,'(5$7,216
 5HJXODWRU\DQG(WKLFDO&RPSOLDQFH
7KLVFOLQLFDOVWXG\ZDVGHVLJQHGDQGVKDOOEHLPSOHPHQWHGDQGUHSRUWHGLQDFFRUGDQFHZLWKWKH
,&++DUPRQLVHG7ULSDUWLWH*XLGHOLQHVIRU*RRG&OLQLFDO3UDFWLFH*&3ZLWKDSSOLFDEOHORFDO
UHJXODWLRQVLQFOXGLQJ(XURSHDQ'LUHFWLYH(&86&RGHRI)HGHUDO5HJXODWLRQV&)5
7LWOHDQG-DSDQHVH0LQLVWU\RI+HDOWK/DERUDQG:HOIDUHDQGZLWKWKHHWKLFDOSULQFLSOHV
ODLGGRZQLQWKH'HFODUDWLRQRI+HOVLQNL
 ,QIRUPHG&RQVHQW3URFHGXUHV
7KHLQYHVWLJDWRUZLOOSURYLGHIRUWKHSURWHFWLRQRIWKHVXEMHFWVE\IROORZLQJDOODSSOLFDEOH
UHJXODWLRQV7KHVHUHJXODWLRQVDUHDYDLODEOHXSRQUHTXHVWIURPWKHVSRQVRU7KH,&)PXVWEH
UHYLHZHGE\WKHVSRQVRUDQGDSSURYHGE\WKH,5%,(&5(%
%HIRUHDQ\SURFHGXUHVVSHFLILHGLQWKHSURWRFRODUHSHUIRUPHGDVXEMHFWPXVW
x %HLQIRUPHGRIDOOSHUWLQHQWDVSHFWVRIWKHVWXG\DQGDOOHOHPHQWVRILQIRUPHGFRQVHQW
x %HJLYHQWLPHWRDVNTXHVWLRQVDQGWLPHWRFRQVLGHUWKHGHFLVLRQWRSDUWLFLSDWH
x 9ROXQWDULO\DJUHHWRSDUWLFLSDWHLQWKHVWXG\
x 6LJQDQGGDWHDQ,5%,(&5(%DSSURYHG,&)


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 5HVSRQVLELOLWLHVRIWKH,QYHVWLJDWRUDQG,5%,(&5(%
7KHSURWRFRODQGWKHSURSRVHG,&)PXVWEHUHYLHZHGDQGDSSURYHGE\DSURSHUO\FRQVWLWXWHG
,5%,(&5(%EHIRUHVWXG\VWDUW$VLJQHGDQGGDWHGVWDWHPHQWWKDWWKHSURWRFRODQG,&)KDYH
EHHQDSSURYHGE\WKH,5%,(&5(%PXVWEHJLYHQWRWKHVSRQVRUEHIRUHVWXG\LQLWLDWLRQ3ULRU
WRVWXG\VWDUWWKHLQYHVWLJDWRULVUHTXLUHGWRVLJQDSURWRFROVLJQDWXUHSDJHFRQILUPLQJKLVKHU
DJUHHPHQWWRFRQGXFWWKHVWXG\LQDFFRUGDQFHZLWKWKHVHGRFXPHQWVDQGDOORIWKHLQVWUXFWLRQV
DQGSURFHGXUHVIRXQGLQWKLVSURWRFRODQGWRJLYHDFFHVVWRDOOUHOHYDQWGDWDDQGUHFRUGVWRWKH
VSRQVRUPRQLWRUVDXGLWRUVGHVLJQDWHGDJHQWVRIWKHVSRQVRU,5%V,(&V5(%VDQGUHJXODWRU\
DXWKRULWLHVDVUHTXLUHG,IDQLQVSHFWLRQRIWKHFOLQLFDOVLWHLVUHTXHVWHGE\DUHJXODWRU\DXWKRULW\
WKHLQYHVWLJDWRUPXVWLQIRUPWKHVSRQVRULPPHGLDWHO\WKDWWKLVUHTXHVWKDVEHHQPDGH
 35272&2/$'+(5(1&(
,QYHVWLJDWRUVDVFHUWDLQWKDWWKH\ZLOODSSO\GXHGLOLJHQFHWRDYRLGSURWRFROGHYLDWLRQV8QGHUQR
FLUFXPVWDQFHVVKRXOGWKHLQYHVWLJDWRUFRQWDFWWKHVSRQVRURULWVDJHQWVWRUHTXHVWDSSURYDORID
SURWRFROGHYLDWLRQDVQRDXWKRUL]HGGHYLDWLRQVDUHSHUPLWWHG,IWKHLQYHVWLJDWRUIHHOVDSURWRFRO
GHYLDWLRQZRXOGLPSURYHWKHFRQGXFWRIWKHVWXG\WKLVPXVWEHFRQVLGHUHGDSURWRFRO
DPHQGPHQWDQGXQOHVVVXFKDQDPHQGPHQWLVDJUHHGXSRQE\WKHVSRQVRUDQGDSSURYHGE\WKH
,5%,(&5(%LWFDQQRWEHLPSOHPHQWHG$OOVLJQLILFDQWSURWRFROGHYLDWLRQVZLOOEHUHFRUGHG
DQGUHSRUWHGLQWKHFOLQLFDOVWXG\UHSRUW&65
 3URWRFRO$PHQGPHQWV
$Q\FKDQJHRUDGGLWLRQWRWKHSURWRFROFDQRQO\EHPDGHLQDZULWWHQSURWRFRODPHQGPHQWWKDW
PXVWEHDSSURYHGE\WKHVSRQVRUKHDOWKDXWKRULWLHVZKHUHUHTXLUHGDQGWKH,5%,(&5(%
2QO\DPHQGPHQWVWKDWDUHUHTXLUHGIRUVXEMHFWVDIHW\PD\EHLPSOHPHQWHGSULRUWR
,5%,(&5(%DSSURYDO1RWZLWKVWDQGLQJWKHQHHGIRUDSSURYDORIIRUPDOSURWRFRODPHQGPHQWV
WKHLQYHVWLJDWRULVH[SHFWHGWRWDNHDQ\LPPHGLDWHDFWLRQUHTXLUHGIRUWKHVDIHW\RIDQ\VXEMHFW
LQFOXGHGLQWKLVVWXG\HYHQLIWKLVDFWLRQUHSUHVHQWVDGHYLDWLRQIURPWKHSURWRFRO,QVXFKFDVHV
WKHVSRQVRUVKRXOGEHQRWLILHGRIWKLVDFWLRQDQGWKH,5%,(&5(%DWWKHVWXG\VLWHVKRXOGEH
LQIRUPHGZLWKLQZRUNLQJGD\V
 48$/,7<&21752/$1'$6685$1&(
7KHVSRQVRUSHUIRUPVTXDOLW\FRQWURODQGDVVXUDQFHFKHFNVRQDOOFOLQLFDOVWXGLHVWKDWLWVSRQVRUV
%HIRUHHQUROOLQJDQ\VXEMHFWVLQWKLVVWXG\VSRQVRUSHUVRQQHODQGWKHLQYHVWLJDWRUUHYLHZWKH
SURWRFROWKH,%WKH&5)VDQGLQVWUXFWLRQVIRUWKHLUFRPSOHWLRQWKHSURFHGXUHIRUREWDLQLQJ
LQIRUPHGFRQVHQWDQGWKHSURFHGXUHIRUUHSRUWLQJ$(VDQG6$(V$TXDOLILHGUHSUHVHQWDWLYHRI
WKHVSRQVRUPRQLWRUVWKHFRQGXFWRIWKHVWXG\E\YLVLWLQJWKHVLWHDQGE\FRQWDFWLQJWKHVLWHE\
WHOHSKRQHDQGHPDLO'XULQJWKHVHVLWHYLVLWVLQIRUPDWLRQUHFRUGHGLQWKH&5)VLVYHULILHG
DJDLQVWVRXUFHGRFXPHQWV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 ',5(&7$&&(66'$7$+$1'/,1*$1'5(&25'.((3,1*
 ,QYHVWLJDWRU
7KHLQYHVWLJDWRUZLOOSHUPLWVWXG\UHODWHGPRQLWRULQJDXGLWV,5%,(&5(%UHYLHZDQG
UHJXODWRU\LQVSHFWLRQVE\SURYLGLQJGLUHFWDFFHVVWRVRXUFHGDWDDQGGRFXPHQWV
$OOLQIRUPDWLRQZLOOEHUHFRUGHGRQVRXUFHGRFXPHQWV$OOUHTXLUHGGDWDZLOOEHUHFRUGHGLQWKH
H&5)V
,IDQLQYHVWLJDWRUUHWLUHVUHORFDWHVRURWKHUZLVHZLWKGUDZVIURPFRQGXFWLQJWKHVWXG\WKH
LQYHVWLJDWRUPXVWQRWLI\WKHVSRQVRUWRDJUHHXSRQDQDFFHSWDEOHVWRUDJHVROXWLRQ5HJXODWRU\
DJHQFLHVZLOOEHQRWLILHGZLWKWKHDSSURSULDWHGRFXPHQWDWLRQ
$QXSGDWHGIRUPZLOOEHILOHGZLWKWKHVSRQVRUIRUDQ\FKDQJHVLQWKHVWXG\SHUVRQQHO
UHSRUWHGLQWKHFXUUHQWIRUP
 6SRQVRU
7KHGDWDLVHQWHUHGLQWRDQHOHFWURQLFGDWDEDVHYLDH&5)V7KHVSRQVRU¶V0HGLFDO0RQLWRU
UHYLHZVWKHGDWDIRUVDIHW\LQIRUPDWLRQ7KHGDWDLVUHYLHZHGIRUFRPSOHWHQHVVDQGORJLFDO
FRQVLVWHQF\$XWRPDWHGYDOLGDWLRQFKHFNVLGHQWLI\PLVVLQJGDWDRXWRIUDQJHGDWDDQGRWKHU
GDWDLQFRQVLVWHQFLHV7KHFHQWUDOVDIHW\DQGPLFURELRORJ\GDWDZLOOEHSURFHVVHGHOHFWURQLFDOO\
5HTXHVWVIRUGDWDFODULILFDWLRQDUHIRUZDUGHGWRWKHLQYHVWLJDWLYHVLWHIRUUHVROXWLRQ
 68%-(&7,1-85<
,QJHQHUDOVXEMHFWWRVSHFLILFSURYLVLRQVLQWKHFOLQLFDOVWXG\DJUHHPHQW&6$LIDVXEMHFWLV
LQMXUHGDVDGLUHFWUHVXOWRIDWHVWDUWLFOHWKHVSRQVRUZLOOSD\IRUUHDVRQDEOHDQGQHFHVVDU\
PHGLFDOWUHDWPHQWIRUWKHLQMXU\WRWKHH[WHQWWKDWVXFKH[SHQVHVDUHQRWFRYHUHGE\WKHVXEMHFW¶V
PHGLFDOLQVXUDQFHDJRYHUQPHQWSURJUDPRURWKHUUHVSRQVLEOHWKLUGSDUW\,IODZVRU
UHJXODWLRQVRIWKHORFDOLW\LQZKLFKWKHVWXG\LVWDNLQJSODFHUHTXLUHDGGLWLRQDOSD\PHQWRI
H[SHQVHVWKHVSRQVRUVKDOOFRPSO\ZLWKVXFKODZVRUUHJXODWLRQV:KHUHDSSOLFDEOHWKHVSRQVRU
KDVWDNHQVSHFLILFQDWLRQDOLQVXUDQFH
 35(678'<'2&80(17$7,21
7KHLQYHVWLJDWRUPXVWSURYLGHWKHVSRQVRUZLWKWKHIROORZLQJGRFXPHQWV%()25(HQUROOLQJDQ\
VXEMHFWV
x &RPSOHWHGDQGVLJQHGIRUP
x $OODSSOLFDEOHFRXQWU\VSHFLILFUHJXODWRU\IRUPV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

x &XUUHQWVLJQHGDQGGDWHGFXUULFXODYLWDHIRUWKHLQYHVWLJDWRUVXELQYHVWLJDWRUVDQGRWKHU
LQGLYLGXDOVKDYLQJVLJQLILFDQWLQYHVWLJDWRUUHVSRQVLELOLW\ZKRDUHOLVWHGRQIRUPRU
HTXLYDOHQWRUWKHFOLQLFDOVWXG\LQIRUPDWLRQIRUP
x &RS\RIWKH,5%,(&5(%DSSURYDOOHWWHUIRUWKHSURWRFRODQGLQIRUPHGFRQVHQW$OO
DGYHUWLVLQJUHFUXLWPHQWDQGRWKHUZULWWHQLQIRUPDWLRQSURYLGHGWRWKHVXEMHFWPXVWEH
DSSURYHGE\WKH,5%,(&5(%:ULWWHQDVVXUDQFHRIFRQWLQXLQJDSSURYDODWOHDVWDQQXDOO\
DVZHOODVDFRS\RIWKHDQQXDOSURJUHVVUHSRUWVXEPLWWHGWRWKH,5%,(&5(%PXVWDOVREH
SURYLGHGWRWKHVSRQVRU
x &RS\RIWKH,5%,(&5(%DSSURYHGLQIRUPHGFRQVHQWGRFXPHQWWREHXVHG
x :KHUHDSSOLFDEOHDOLVWRIWKH,5%,(&5(%PHPEHUVDQGWKHLUTXDOLILFDWLRQVDQGD
GHVFULSWLRQRIWKHFRPPLWWHH¶VZRUNLQJSURFHGXUH
x &RS\RIWKHSURWRFROVLJQRIISDJHVLJQHGE\WKHLQYHVWLJDWRU
x )XOO\H[HFXWHG&6$
x :KHUHDSSOLFDEOHDILQDQFLDOGLVFORVXUHIRUP
x $ZULWWHQGRFXPHQWFRQWDLQLQJWKHQDPHORFDWLRQFHUWLILFDWLRQQXPEHUDQGGDWHRI
FHUWLILFDWLRQRIWKHODERUDWRULHVWREHXVHGIRUODERUDWRU\DVVD\VDQGWKRVHRIRWKHUIDFLOLWLHV
FRQGXFWLQJWHVWV7KLVGRFXPHQWVKRXOGEHUHWXUQHGDORQJZLWKWKHVWDWHPHQWRILQYHVWLJDWRU
IRUP7KHVSRQVRUPXVWEHQRWLILHGLIWKHODERUDWRU\LVFKDQJHGRULIDQ\DGGLWLRQDO
ODERUDWRU\LVWREHXVHG
x /LVWRIQRUPDOODERUDWRU\YDOXHVDQGXQLWVRIPHDVXUHIRUDOOODERUDWRU\WHVWVUHTXLUHGE\WKH
SURWRFRO7KLVLVUHTXLUHGIRUHDFKODERUDWRU\WREHXVHGGXULQJWKHVWXG\7KHVSRQVRUPXVW
EHQRWLILHGLIQRUPDOYDOXHVRUXQLWVRIPHDVXUHPHQWFKDQJH

 5(&25'65(7(17,21
7KHLQYHVWLJDWRUVKDOOUHWDLQDQGSUHVHUYHFRS\RIDOOGDWDJHQHUDWHGLQWKHFRXUVHRIWKHVWXG\
VSHFLILFDOO\LQFOXGLQJEXWQRWOLPLWHGWRWKRVHGHILQHGE\*&3DVHVVHQWLDOIRUWKHORQJHURID
\HDUVDIWHUWKHODVWPDUNHWLQJDXWKRUL]DWLRQIRUWKHVWXG\GUXJKDVEHHQDSSURYHGRUWKHVSRQVRU
KDVGLVFRQWLQXHGLWVUHVHDUFKZLWKUHVSHFWWRVXFKGUXJRUEVXFKORQJHUSHULRGDVUHTXLUHGE\
DSSOLFDEOHJOREDOUHJXODWRU\UHTXLUHPHQWV$WWKHHQGRIVXFKSHULRGWKHLQYHVWLJDWRUVKDOO
QRWLI\WKHVSRQVRULQZULWLQJRILWVLQWHQWWRGHVWUR\DOOVXFKPDWHULDO7KHVSRQVRUVKDOOKDYH
GD\VWRUHVSRQGWRWKHLQYHVWLJDWRU¶VQRWLFHDQGWKHVSRQVRUVKDOOKDYHDIXUWKHURSSRUWXQLW\
WRUHWDLQVXFKPDWHULDOVDWWKHVSRQVRU¶VH[SHQVH
 38%/,&$7,2132/,&<
7KHVSRQVRUDVVXUHVWKDWWKHNH\GHVLJQHOHPHQWVRIWKLVSURWRFROZLOOEHSRVWHGLQDSXEOLFO\
DFFHVVLEOHGDWDEDVHVXFKDVFOLQLFDOWULDOVJRY,QDGGLWLRQXSRQVWXG\FRPSOHWLRQDQG
ILQDOL]DWLRQRIWKHVWXG\UHSRUWWKHUHVXOWVRIWKLVVWXG\ZLOOEHHLWKHUVXEPLWWHGIRUSXEOLFDWLRQ
DQGRUSRVWHGLQDSXEOLFO\DFFHVVLEOHGDWDEDVHRIFOLQLFDOVWXG\UHVXOWV

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

8SRQFRPSOHWLRQRIWKHVWXG\WKHLQYHVWLJDWRUPD\SXEOLVKWKHUHVXOWVLQUHFRJQL]HGUHIHUHHG
VFLHQWLILFMRXUQDOVVXEMHFWWRWKHSURYLVLRQVRIWKH&6$8QOHVVRWKHUZLVHVSHFLILHGLQWKH&6$
WKHIROORZLQJSURFHVVVKDOORFFXU
7KHLQVWLWXWLRQDQG3ULQFLSDO,QYHVWLJDWRU3,VKDOOQRWSXEOLVKRUSUHVHQWGDWDIURPDQLQGLYLGXDO
VWXG\FHQWHUXQWLOWKHFRPSOHWHPXOWLFHQWHUVWXG\KDVEHHQSUHVHQWHGLQIXOORUIRU\HDUVDIWHU
WKHWHUPLQDWLRQRIWKHPXOWLFHQWHUVWXG\ZKLFKHYHURFFXUVILUVW6XEVHTXHQWSXEOLFDWLRQVPXVW
UHIHUWRWKHPXOWLFHQWHUILQGLQJV7KHUHDIWHULIWKH3,H[SHFWVWRSDUWLFLSDWHLQWKHSXEOLFDWLRQRI
GDWDJHQHUDWHGIURPWKLVVLWHWKHLQVWLWXWLRQDQG3,VKDOOVXEPLWUHSRUWVDEVWUDFWVPDQXVFULSWV
DQGRURWKHUSUHVHQWDWLRQPDWHULDOVWRWKHVSRQVRUIRUUHYLHZEHIRUHVXEPLVVLRQIRUSXEOLFDWLRQRU
SUHVHQWDWLRQ7KHVSRQVRUVKDOOKDYHGD\VWRUHVSRQGZLWKDQ\UHTXHVWHGUHYLVLRQVLQFOXGLQJ
ZLWKRXWOLPLWDWLRQWKHGHOHWLRQRIFRQILGHQWLDOLQIRUPDWLRQ7KH3,VKDOODFWLQJRRGIDLWKXSRQ
UHTXHVWHGUHYLVLRQVH[FHSWWKDWWKH3,VKDOOGHOHWHDQ\FRQILGHQWLDOLQIRUPDWLRQIURPVXFK
SURSRVHGSXEOLFDWLRQ7KH3,VKDOOGHOD\VXEPLVVLRQRIVXFKSXEOLFDWLRQRUSUHVHQWDWLRQ
PDWHULDOVIRUXSWRDQDGGLWLRQDOGD\VLQRUGHUWRKDYHDSDWHQWDSSOLFDWLRQVILOHG

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

 5()(5(1&(6$YDLODEOH8SRQ5HTXHVW
 (0$*XLGHOLQHRQWKHHYDOXDWLRQRIPHGLFDOSURGXFWVLQGLFDWHGIRUWUHDWPHQWRI
EDFWHULDOLQIHFWLRQV(XURSHDQ0HGLFLQHV$JHQF\&303(:3UHY
 (0$$GGHQGXPWRWKHJXLGHOLQHRQWKHHYDOXDWLRQRIPHGLFLQDOSURGXFWVLQGLFDWHG
IRUWUHDWPHQWRIEDFWHULDOLQIHFWLRQV&303(:35HY(XURSHDQ0HGLFLQHV
$JHQF\(0$&+03
 )DUULQJWRQ&30DQQLQJ*7HVW6WDWLVWLFVDQG6DPSOH6L]H)RUPXODHIRU
&RPSDUDWLYH%LQRPLDO7ULDOVZLWK1XOO+\SRWKHVLVRI1RQ]HUR5LVN'LIIHUHQFHRU1RQ
XQLW\5HODWLYH5LVN6WDWLVWLFVLQ0HGLFLQH
 )'$*XLGDQFHIRU,QGXVWU\3RSXODWLRQ3KDUPDFRNLQHWLFV&HQWHUIRU'UXJ
(YDOXDWLRQDQG5HVHDUFK86'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV
 )'$*XLGDQFHIRU,QGXVWU\&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD'HYHORSLQJ
'UXJVIRU7UHDWPHQW&'(5
 )LQH0-$XEOH7(<HDO\'0+DQXVD%+:HLVVIHOG/$6LQJHU'(&ROH\&0
0DUULH7-.DSRRU:1$SUHGLFWLRQUXOHWRLGHQWLI\ORZULVNVXEMHFWVZLWK
FRPPXQLW\DFTXLUHGSQHXPRQLD1(QJO-0HG
 0DQGHOO/$:XQGHULQN5*$Q]XHWR$%DUWOHWW-*&DPSEHOO*''HDQ1&'RZHOO
6))LOH700XVKHU'01LHGHUPDQ067RUUHV$:KLWQH\&*,QIHFWLRXV
'LVHDVHV6RFLHW\RI$PHULFD$PHULFDQ7KRUDFLF6RFLHW\&RQVHQVXV*XLGHOLQHVRQWKH
0DQDJHPHQWRI&RPPXQLW\$FTXLUHG3QHXPRQLDLQ$GXOWV&OLQ,QIHFW'LV66
 0LHWWLQHQ21XUPLQHQ0&RPSDUDWLYHDQDO\VLVRIWZRUDWHV6WDWLVWLFVLQ0HGLFLQH

 1LHGHUPDQ060F&RPEV-68QJHU$1.XPDU$3RSRYLDQ57KHFRVWRI
WUHDWLQJFRPPXQLW\DFTXLUHGSQHXPRQLD&OLQ7KHUS
1RHO*-'UDSHU03+DLW+7DQDND6.$UEHLW5'$UDQGRPL]HG
HYDOXDWRUEOLQGSKDVHVWXG\FRPSDULQJWKHVDIHW\DQGHIILFDF\RIRPDGDF\FOLQHWRWKRVHRI
OLQH]ROLGIRUWUHDWPHQWRIFRPSOLFDWHGVNLQDQGVNLQVWUXFWXUHLQIHFWLRQV$QWLPLFURE$JHQWV
&KHPRWKHU
3DUDWHN3KDUPDFHXWLFDOV,QF2PDGDF\FOLQH37.,QYHVWLJDWRU
V%URFKXUH
(GLWLRQ
3DWHUVRQ'/&ROODWHUDOGDPDJHIURPFHSKDORVSRULQRUTXLQRORQHDQWLELRWLF
WKHUDS\&OLQ,QIHFW'LV6XSSO6

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

6SHOOEHUJ%*XLGRV5*LOEHUW'%UDGOH\-%RXFKHU+:6FKHOG:0%DUWOHWW-*
(GZDUGV-DQGWKH,QIHFWLRXV'LVHDVHV6RFLHW\RI$PHULFD7KHHSLGHPLFRI
DQWLELRWLFUHVLVWDQWLQIHFWLRQVDFDOOWRDFWLRQIRUWKHPHGLFDOFRPPXQLW\IURPWKH,QIHFWLRXV
'LVHDVHV6RFLHW\RI$PHULFD&OLQ,QIHFW'LV
7DOERW*+3RZHUV-+)OHPLQJ756LXFLDN-$%UDGOH\-%RXFKHU+RQEHKDOIRIWKH
&$%3$%666,3URMHFW7HDP3URJUHVVRQ'HYHORSLQJ(QGSRLQWVIRU5HJLVWUDWLRQDO
&OLQLFDO7ULDOVRI&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLDDQG$FXWH%DFWHULDO6NLQDQG
6NLQ6WUXFWXUH,QIHFWLRQV8SGDWH)URPWKH%LRPDUNHUV&RQVRUWLXPRIWKH)RXQGDWLRQIRUWKH
1DWLRQDO,QVWLWXWHVRI+HDOWK&OLQ,QIHFW'LV
7HIODUR)XOO3UHVFULELQJ,QIRUPDWLRQ5HYLVLRQ)RUHVW3KDUPDFHXWLFDOV,QF6W
/RXLV02

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

$SSHQGL[
$OORZHGDQG'LVDOORZHG3ULRU$QWLELRWLFV
$OORZHG$QWLELRWLFV
2QHGRVHZLWKLQKRXUVSULRUWRUDQGRPL]DWLRQ
'LVDOORZHG$QWLELRWLFV
3HQLFLOOLQV
$PR[LFLOOLQ
1DIFLOOLQ
%HQ]DWKLQH3HQLFLOOLQ*3URFDLQH
$PR[LFLOOLQ&ODYXODQDWH
2[DFLOOLQ

$PR[LFLOOLQ6XOEDFWDP
3HQLFLOOLQ*RU9

$PSLFLOOLQ
3LSHUDFLOOLQ

$PSLFLOOLQ6XOEDFWDP
3LSHUDFLOOLQ7D]REDFWDP

'LFOR[DFLOOLQ
7LFDUFLOOLQ&ODYXODQDWH

&HSKDORVSRULQV
&HIDFORU
&HISRGR[LPH
&HIL[LPHPJ
&HIDGUR[LO
&HISUR]LO
&HIWULD[RQH
&HID]ROLQ
&HIWDUROLQH
&HIGLQLU
&HIWD]LGLPH
&HIHSLPH
&HIWLEXWHQ
&HIL[LPHPJ
&HIXUR[LPH
&HIGLWRUHQ
&HSKDOH[LQ
&HIRWD[LPH
/RUDFDUEHI
&DUEDSHQHPV
'RULSHQHP
,PLSHQHP
0HURSHQHP
(UWDSHQHP
*O\FRSHSWLGHV
7HOHYDQFLQ
'DOEDYDQFLQ
9DQFRP\FLQ
2ULWDYDQFLQ
)OXRURTXLQRORQHV
&LSURIOR[DFLQ
/HYRIOR[DFLQ
0R[LIOR[DFLQ
0DFUROLGHV
&ODULWKURP\FLQ
(U\WKURP\FLQ
$]LWKURP\FLQ
&ODULWKURP\FLQ;/
7HWUDF\FOLQHV
'R[\F\FOLQHPJ
0LQRF\FOLQH
'R[\F\FOLQHPJ
0LQRF\FOLQH([WHQGHG5HOHDVH
7LJHF\FOLQH
2[D]ROLGLQRQHV
/LQH]ROLG
7HGL]ROLG
0LVFHOODQHRXV
&OLQGDP\FLQ
0HWURQLGD]ROH
7ULPHWKRSULPVXOIDPHWKR[D]ROH&RWULPR[D]ROH


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

3ULRUZLWKLQKRXUVSULRUWRUDQGRPL]DWLRQDGPLQLVWUDWLRQRISRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWKHUDS\
LVDQH[FOXVLRQFULWHULRQ6HFWLRQKRZHYHUVXEMHFWVPD\EHHOLJLEOHIRUWKHVWXG\GHVSLWHSULRUDQWLPLFURELDO
WKHUDS\LIWKH\UHFHLYHGDVLQJOHGRVHRIDVKRUWDFWLQJV\VWHPLFDQWLELRWLFZLWKLQKRXUVSULRUWRUDQGRPL]DWLRQ
)RUWKHSXUSRVHVRIWKLVSURWRFROVKRUWDFWLQJLVGHILQHGDVKDYLQJDGRVDJHIUHTXHQF\RIPRUHWKDQRQFHDGD\,ID
VXEMHFWUHFHLYHGDSULRUVKRUWDFWLQJV\VWHPLFDQWLELRWLFWKDWLVQRWOLVWHGKHUHWKHLQYHVWLJDWRUPXVWFRQWDFWWKH
0HGLFDO0RQLWRUWRHQVXUHVXEMHFWHOLJLELOLW\

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'
$SSHQGL[
32575LVN&ODVV&DOFXODWLRQ
$GDSWHGIURP)LQHHWDO
127(6XEMHFWV
VWUDWLILHGWR5LVN&ODVV,
ZLOOQRWEHHOLJLEOHIRU
HQUROOPHQWLQWKLVVWXG\


127(6XEMHFWV
VWUDWLILHGWR5LVN&ODVV
9ZLOOQRWEHHOLJLEOHIRU
HQUROOPHQWLQWKLVVWXG\
&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

$SSHQGL[
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW
6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQW
&28*+"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RFRXJKRU
UHVROXWLRQWRSUH
&$%3%DVHOLQH
&RXJKSUHVHQWEXW
LWGRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&RXJKSUHVHQW
IUHTXHQWDQGLWGRHV
LQWHUIHUHZLWKVRPH
RIWKHVXEMHFW¶V
XVXDOGDLO\
DFWLYLWLHV
&RXJKLVSUHVHQW
WKURXJKRXWWKHGD\
DQGQLJKWLWOLPLWV
PRVWRIWKH
VXEMHFWV¶XVXDO
GDLO\DFWLYLWLHVDQG
VOHHSSDWWHUQV
3/(85,7,&
&+(673$,1"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RFKHVWSDLQRU
UHVROXWLRQRIFKHVW
SDLQUHODWHGWR
&$%3
&KHVWSDLQSUHVHQW
RFFDVLRQDOO\ZLWK
GHHSEUHDWKLQJEXW
LWGRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&KHVWSDLQLV
SUHVHQWZLWKQRUPDO
EUHDWKVDQGLWGRHV
LQWHUIHUHZLWKWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&KHVWSDLQLV
SUHVHQWDWUHVW
DQGRUZLWKVKDOORZ
EUHDWKLQJLWOLPLWV
PRVWRIWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
6+2571(662)
%5($7+"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RVKRUWQHVVRI
EUHDWKRUUHVROXWLRQ
WRSUH&$%3
%DVHOLQH
6KRUWQHVVRIEUHDWK
ZLWKVWUHQXRXV
DFWLYLWLHVRQO\EXWLW
GRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
6KRUWQHVVRIEUHDWK
ZLWKXVXDODFWLYLWLHV
DQGLWGRHVLQWHUIHUH
ZLWKWKHVXEMHFW¶V
XVXDOGDLO\
DFWLYLWLHV
6KRUWQHVVRIEUHDWK
ZLWKPLQLPDO
H[HUWLRQRUDWUHVW
LWOLPLWVPRVWRIWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
3+/(*0
638780
352'8&7,21"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RFRXJKLQJXSRI
SKOHJPVSXWXPRU
UHVROXWLRQWRSUH
&$%3%DVHOLQH
6XEMHFWFRXJKVXS
DVPDOODPRXQWRI
SKOHJPVSXWXP
6XEMHFWFRXJKVXS
DPRGHUDWHDPRXQW
RISKOHJPVSXWXP
6XEMHFWFRXJKVXS
DODUJHDPRXQWRI
SKOHJPVSXWXP


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
)(%
,1'

$SSHQGL[
(TXDWLRQVDQG&RQYHUVLRQV
 &RFNFURIW*DXOWHTXDWLRQWRFDOFXODWHFUHDWLQLQHFOHDUDQFH&U&O

DJH>\UV@ZHLJKW>NJ@=
= LI0DOH
= LI)HPDOH
&U>PJG/@

 PP /
 FF P/

&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&



2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

35272&2/37.&$%3
6WXG\7LWOH
$3KDVH5DQGRPL]HG'RXEOH%OLQG0XOWL&HQWHU6WXG\WR
&RPSDUHWKH6DIHW\DQG(IILFDF\RI2PDGDF\FOLQH,932WR
0R[LIOR[DFLQ,932IRU7UHDWLQJ$GXOW6XEMHFWVZLWK
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD&$%3
,1'1XPEHUV


(XGUD&71XPEHU

3URWRFRO1XPEHU
37.&$%3


,QGLFDWLRQ
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
3KDVH

,QYHVWLJDWLRQDO'UXJ
2PDGDF\FOLQH37.
'RVH)RUPV
,QWUDYHQRXVDQGRUDO
6SRQVRU
3DUDWHN3KDUPD//&
$ZKROO\RZQHGVXEVLGLDU\RI3DUDWHN3KDUPDFHXWLFDOV,QF

3DUN3OD]DWK)ORRU
%RVWRQ0$86$

)LUVW$YH
6XLWH
.LQJRI3UXVVLD3$

32%R[
%RVWRQ0$

7HO



3URWRFRO9HUVLRQ
9HUVLRQ
'DWH
2&7



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7$%/(2)&217(176
7$%/(2)&217(176 
/,672)$33(1',&(6 
 
',6&/2685(67$7(0(17 
 
&217$&76 
 
(PHUJHQF\&RQWDFWV 
 
$GGLWLRQDO&RQWDFWV 
 
63216256,*1$785( 
 
,19(67,*$725$*5((0(17 
 
/,672)$%%5(9,$7,216 
 
'(),1,7,216 
 
35272&2/6<1236,6 
 
678'<)/2:&+$57 
 
,1752'8&7,21 
 
%DFNJURXQG 
 678'<2%-(&7,9(6 
 
3ULPDU\2EMHFWLYH 
 
6HFRQGDU\2EMHFWLYHV 
 678'<'(6,*1 
 
'HVFULSWLRQ 
 
5DWLRQDOHRI6WXG\'HVLJQ 
 
5DWLRQDOHIRU&KRLFHRI&RPSDUDWRU 
 
$SSUR[LPDWH'XUDWLRQRI6XEMHFW3DUWLFLSDWLRQ 
 
$SSUR[LPDWH'XUDWLRQRI6WXG\ 
 
$SSUR[LPDWH1XPEHURI6XEMHFWV 
 6(/(&7,212)68%-(&76 
 
,QFOXVLRQ&ULWHULD 
 
([FOXVLRQ&ULWHULD 
 
6FUHHQ)DLOXUHV 
 35,25$1'&21&20,7$1775($70(17 
 
3HUPLWWHG7UHDWPHQW 
 
3URKLELWHG7UHDWPHQW 
 
3URKLELWHG&RQFRPLWDQW0HGLFDWLRQVWKDWPD\,QWHUDFWZLWK0R[LIOR[DFLQ 
 352&('85(6 
 
9LVLW6FKHGXOHDQG$VVHVVPHQWV 


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 
6FUHHQLQJ3KDVH 
 
6XEMHFW'HPRJUDSKLFV2WKHU%DVHOLQH&KDUDFWHULVWLFV 
 
0HGLFDO+LVWRU\5HODWLQJWRWKH,QIHFWLRQ8QGHU6WXG\ 

 
3K\VLFDO([DPLQDWLRQ 
 
$VVHVVPHQWRI&$%36\PSWRP6HYHULW\ 
 
5DGLRORJLF(YDOXDWLRQRI3QHXPRQLD 
 
32575LVN&ODVV 
 
8ULQH7HVWV 
 
'RXEOHEOLQG7UHDWPHQW3KDVH 
 
$VVHVVPHQWV:KLOHRQ7HVW$UWLFOH 
 
,QWUDYHQRXV7UHDWPHQW3KDVH7HVW$UWLFOH 

 
6ZLWFKWR2UDO7UHDWPHQW 

 
2UDO7UHDWPHQW3KDVH7HVW$UWLFOH 

 
3HUPLWWHG'RVH$GMXVWPHQWVDQG,QWHUUXSWLRQVRI7HVW$UWLFOH 
 
)ROORZXS3KDVH 
 
7RWDO9ROXPHRI%ORRG&ROOHFWHG 
 7(67$57,&/($1'$'0,1,675$7,21 
 
7HVW$UWLFOH$GPLQLVWUDWLRQ 
 
,GHQWLW\RIWKH,QYHVWLJDWLRQDO3URGXFW 
 
,QYHVWLJDWLRQDODQG&RPSDUDWRU7HVW$UWLFOH 
 
,QYHVWLJDWLRQDO7HVW$UWLFOH2PDGDF\FOLQH 
 
&RPSDUDWRU7HVW$UWLFOH0R[LIOR[DFLQ 
 
6XEMHFW&RPSOLDQFHZKLOHRQ2UDO7HVW$UWLFOH 
 6$)(7< 
 
3K\VLFDO([DPLQDWLRQV 
 
9LWDO6LJQV 
 
/DERUDWRU\(YDOXDWLRQV 
 
+HPDWRORJ\ 

 
&OLQLFDO&KHPLVWU\ 

 
2WKHUODERUDWRU\WHVWV 

 
6DIHW\6WXGLHVWREH3HUIRUPHG/RFDOO\ 
 
(OHFWURFDUGLRJUDP 

 
3UHJQDQF\DQG$VVHVVPHQWVRI)HUWLOLW\ 

 
%ORRG&XOWXUHV 

 
$GGLWLRQDO/RFDO/DERUDWRU\7HVWV 

 
$SSURSULDWHQHVVRI6DIHW\0HDVXUHPHQWV 
 ()),&$&< 


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 
3ULPDU\DQG6HFRQGDU\(IILFDF\9DULDEOHV 
 
.H\$VVHVVPHQWV 
 
$VVHVVPHQWRI&$%36\PSWRP6HYHULW\ 
 
0LFURELRORJLFDO$VVHVVPHQWV 
 
5HVSLUDWRU\&XOWXUHDQG*UDP6WDLQ 

 
8ULQHIRU/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDH

$QWLJHQ6FUHHQLQJ 
 
6HURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHDQG

&KODP\GRSKLODSQHXPRQLDH7LWHUV 
 
$VVHVVPHQWRI&OLQLFDO2XWFRPH 
 
(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DWWKH(DUO\&OLQLFDO5HVSRQVH

$VVHVVPHQW
 
 
&OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW(27 

 
&OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW37( 

 27+(5$66(660(176 
 
5HVRXUFH8WLOL]DWLRQ 
 3+$50$&2.,1(7,&3/$60$6$03/(6)2520$'$&<&/,1(
&21&(175$7,21 
 
6HOHFWLRQRI6LWHVIRU3.6WXGLHV 
 
&ROOHFWLRQRI3.6DPSOHV 
 
6WRULQJDQG6KLSSLQJRI3.6DPSOHV 
 
$QDO\VLVRI3.6DPSOHV 
 27+(5%,20$5.(56 
 6$)(7<021,725,1* 
 
$GYHUVH(YHQWV 
 
6HULRXV$GYHUVH(YHQW5HSRUWLQJ 
 
2YHUGRVH 
 
0HGLFDWLRQ(UURUV 
 
5HFRUGLQJDQG5HSRUWLQJ 
 
3UHJQDQFLHV 
 
'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH 
 '$7$$1$/<6,6 
 
$QDO\VLV3RSXODWLRQV 
 
6XEMHFW'HPRJUDSKLFVDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV 
 
7UHDWPHQWV7HVW$UWLFOH5HVFXH0HGLFDWLRQ2WKHU&RQFRPLWDQW7KHUDSLHV
&RPSOLDQFH 
 
3ULPDU\(IILFDF\$QDO\VLV 


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 
(DUO\&OLQLFDO5HVSRQVH(IILFDF\9DULDEOH 
 
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37((IILFDF\
9DULDEOH 
 
6WDWLVWLFDO0RGHO+\SRWKHVLVDQG0HWKRGRI$QDO\VLV 
 
$GGLWLRQDO$QDO\VHVRIWKH3ULPDU\(IILFDF\2XWFRPHV 
 
$QDO\VLVRI6HFRQGDU\9DULDEOHV 
 
$QDO\VLVRI$GGLWLRQDO(IILFDF\9DULDEOHV 
 
6DIHW\2XWFRPH0HDVXUHV 
 
$GYHUVH(YHQWV 
 
9LWDO6LJQV 
 
(OHFWURFDUGLRJUDPV 
 
/DERUDWRU\7HVWV 
 
5HVRXUFH8WLOL]DWLRQ 
 
3KDUPDFRNLQHWLFV 
 
3RSXODWLRQ3.0RGHOLQJ 
 3KDUPDFRJHQHWLFV3KDUPDFRJHQRPLFV 
 %LRPDUNHUV 
 3.3'
 
 6DPSOH6L]H&DOFXODWLRQ 
 ,QWHULP$QDO\VHV 
 +DQGOLQJRI0LVVLQJ9DOXHV&HQVRULQJ'LVFRQWLQXDWLRQV 
 68%-(&7,'(17,),&$7,21 
 7(67$57,&/($&&2817$%,/,7<5(&21&,/,$7,21$1'5(7851 
 
6XSSO\6WRUDJHDQG7UDFNLQJRI6WXG\7UHDWPHQW 
 5$1'20,=$7,21$1'%/,1',1* 
 
7UHDWPHQW$VVLJQPHQW 
 
'LVSHQVLQJWKH7HVW$UWLFOH 
 
7UHDWPHQW%OLQGLQJ 
 
(PHUJHQF\8QEOLQGLQJRI7UHDWPHQW$VVLJQPHQW 
 68%-(&7',6&217,18$7,2125:,7+'5$:$/ 
 678'<6863(16,217(50,1$7,21$1'&203/(7,21 
 
6WXG\&RPSOHWLRQDQG3RVW6WXG\7HVW$UWLFOH 
 
6WXG\6XVSHQVLRQRU7HUPLQDWLRQ 
 (7+,&$/&216,'(5$7,216 
 
5HJXODWRU\DQG(WKLFDO&RPSOLDQFH 


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 
,QIRUPHG&RQVHQW3URFHGXUHV 
 
5HVSRQVLELOLWLHVRIWKH,QYHVWLJDWRUDQG,5%,(&5(% 
 35272&2/$'+(5(1&( 
 
3URWRFRO$PHQGPHQWV 
 48$/,7<&21752/$1'$6685$1&( 
 ',5(&7$&&(66'$7$+$1'/,1*$1'5(&25'.((3,1* 
 
,QYHVWLJDWRU 
 
6SRQVRU 
 68%-(&7,1-85< 
 35(678'<'2&80(17$7,21 
 5(&25'65(7(17,21 
 38%/,&$7,2132/,&< 
 5()(5(1&(6$YDLODEOH8SRQ5HTXHVW 

/,672),17(;77$%/(6
7DEOH 
7UHDWPHQW5HJLPHQVIRU,97HVW$UWLFOH 
7DEOH 
7UHDWPHQW5HJLPHQVIRU2UDO7HVW$UWLFOH 
7DEOH 
,QWUDYHQRXV)RUPXODWLRQ 
7DEOH 
2UDO)RUPXODWLRQ 
7DEOH 
+HPDWRORJ\3DQHO 
7DEOH 
&OLQLFDO&KHPLVWU\3DQHO 
7DEOH 
$GGLWLRQDO/DERUDWRU\7HVWV 
7DEOH 
6DPSOH6L]HDQG3RZHU&DOFXODWLRQV 
7DEOH 
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37('HWHUPLQDWLRQ*LYHQ
0LVVLQJ'DWD 

/,672)$33(1',&(6
$SSHQGL[ 
$OORZHGDQG'LVDOORZHG3ULRU$QWLELRWLFV 
$SSHQGL[ 
32575LVN&ODVV&DOFXODWLRQ 
$SSHQGL[ 
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP
6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQW 
$SSHQGL[ 
(TXDWLRQVDQG&RQYHUVLRQ)DFWRUV 



2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


',6&/2685(67$7(0(17
5HVWULFWHG'LVWULEXWLRQRI'RFXPHQWV
7KLVGRFXPHQWFRQWDLQVLQIRUPDWLRQWKDWLVFRQILGHQWLDODQGSURSULHWDU\WRWKHVSRQVRU7KLV
LQIRUPDWLRQLVEHLQJSURYLGHGWR\RXVROHO\IRUWKHSXUSRVHRIHYDOXDWLQJDQGRUFRQGXFWLQJD
FOLQLFDOVWXG\IRUWKHVSRQVRU<RXPD\GLVFORVHWKHFRQWHQWVRIWKLVGRFXPHQWRQO\WRVWXG\
SHUVRQQHOXQGHU\RXUVXSHUYLVLRQLQVWLWXWLRQDOUHYLHZERDUGV,5%VLQGHSHQGHQWHWKLFV
FRPPLWWHHV,(&VUHVHDUFKHWKLFVERDUGV5(%VRUGXO\DXWKRUL]HGUHSUHVHQWDWLYHVRI
UHJXODWRU\DJHQFLHVIRUWKLVSXUSRVHXQGHUWKHFRQGLWLRQWKDWWKH\PDLQWDLQFRQILGHQWLDOLW\
7KHFRQWHQWVRIWKLVGRFXPHQWPD\QRWEHXVHGLQDQ\RWKHUFOLQLFDOVWXG\GLVFORVHGWRDQ\
RWKHUSHUVRQRUHQWLW\DQGRUSXEOLVKHGZLWKRXWWKHSULRUZULWWHQSHUPLVVLRQRIWKHVSRQVRU
7KHIRUHJRLQJVKDOOQRWDSSO\WRGLVFORVXUHUHTXLUHGE\DQ\UHJXODWLRQVKRZHYHU\RXZLOO
JLYHSURPSWQRWLFHWRWKHVSRQVRURIDQ\VXFKGLVFORVXUH$OORWKHUQRQSXEOLFLQIRUPDWLRQ
SURYLGHGE\WKHVSRQVRUDQGDQ\LQIRUPDWLRQWKDWPD\EHDGGHGWRWKLVGRFXPHQWDOVRLV
FRQILGHQWLDODQGSURSULHWDU\WRWKHVSRQVRUDQGPXVWEHNHSWLQFRQILGHQFHLQWKHVDPHPDQQHU
DVWKHFRQWHQWVRIWKLVGRFXPHQW


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


&217$&76

(PHUJHQF\&RQWDFWV
1DPH7LWOH3DXO(FNEXUJ0'*OREDO0HGLFDO0RQLWRU
3KRQHGXULQJEXVLQHVVKRXUV

3KRQHDIWHUEXVLQHVVKRXUV

(PDLOQRWIRUHPHUJHQFLHV

$GGUHVV











1DPH7LWOH3KLOLSSH9LWRX0'5HJLRQDO0HGLFDO0RQLWRU
3KRQHGXULQJEXVLQHVVKRXUV

3KRQHDIWHUEXVLQHVVKRXUV

(PDLOQRWIRUHPHUJHQFLHV

$GGUHVV

















1DPH7LWOH6WHSKHQ9LOODQR0'3DUDWHN3KDUPD//&93&OLQLFDODQG0HGLFDO$IIDLUV
3KRQHGXULQJEXVLQHVVKRXUV

3KRQHDIWHUEXVLQHVVKRXUV

(PDLOQRWIRUHPHUJHQFLHV

$GGUHVV














$GGLWLRQDO&RQWDFWV
6HULRXV$GYHUVH(YHQW6$(FRQWDFWLQIRUPDWLRQ
(0DLO

)D[




' " !+!&$(#,,,

#*%)(, ,
	,



	
	
,
,
=&8=3=0=22318=6&'5=231611+= ;=5'%0673='0=10)706'10=:'6&=6&=5'%0673=1 =6&=
'0856'%613= 10#3/5=6&= %3.06=1 =16&=236'5= 6&6=6&=+'0'+=567;=:'++==1076=
'0=130=:'6&= 6&=231611+=0=++=22+'+= +:5=0=3%7+6'105= '0+7'0%=76=016=
,'/'6=61=6&=0646'10+=10"30= 10=3/10'56'10=7'+'0=$3=11=+'0'+=
36'==6&=1=1 =3+=%7+6'105==0=6&=6&'+=23'0'2+5=6&6=&9=
6&'3=13'%'05='0=6&=+36'10=1 =+5'0*'	=
62&0=',+01==
=1 =-'0'+=0='+=  !'35=
36*=&3.= =
		

	
6=1 =(%0673=
=

'/=

&173=+1*=6'.=
<10=
 


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


,19(67,*$725$*5((0(17
,KDYHUHDGWKHIRUHJRLQJSURWRFRO37.&$%3DQGDJUHHWRWKHIROORZLQJ
7KHSURWRFROFRQWDLQVDOOQHFHVVDU\GHWDLOVIRUFDUU\LQJRXWWKLVVWXG\
,ZLOOFRQGXFWWKHVWXG\DVGHWDLOHGLQWKHSURWRFRODQGZLOODELGHE\DOOLWVSURYLVLRQV
,ZLOOFRQGXFWWKHVWXG\LQFRPSOLDQFHZLWKWKHPRVWFXUUHQWYHUVLRQVRI,QWHUQDWLRQDO
&RQIHUHQFHRQ+DUPRQLVDWLRQRI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI3KDUPDFHXWLFDOV
IRU+XPDQ8VH,&+*XLGHOLQHVIRU*RRG&OLQLFDO3UDFWLFH*&3DOODSSOLFDEOH
JRYHUQPHQWUHJXODWLRQVDQGWKHUHTXLUHPHQWVRIWKH,5%,(&5(%WKDWDSSURYHGWKHVWXG\
,ZLOOWUDLQDQGVXSHUYLVHDOOLQGLYLGXDOVGHOHJDWHGWRDVVLVWPHLQFRQGXFWLQJWKLVVWXG\
LQFOXGLQJSURYLGLQJFRSLHVRIWKHSURWRFRODQGDOOSHUWLQHQWLQIRUPDWLRQDQGGLVFXVVLQJWKH
PDWHULDOZLWKWKHPWRHQVXUHWKH\DUHIXOO\LQIRUPHGUHJDUGLQJWKHLQYHVWLJDWLRQDOGUXJWKH
SURWRFRODQGWKHLUUHVSRQVLELOLWLHVDQGREOLJDWLRQV
,ZLOOXVHRQO\WKHLQIRUPHGFRQVHQWIRUP,&)DSSURYHGE\3$5$7(.RUWKHLUGHVLJQHH
DQGE\WKH,5%,(&5(%UHVSRQVLEOHIRUWKLVVWXG\
,ZLOOIXOILOODOOUHTXLUHPHQWVIRUVXEPLWWLQJSHUWLQHQWLQIRUPDWLRQWRWKH,5%,(&5(%DQGWR
3$5$7(.LQFOXGLQJUHSRUWDEOHVHULRXVDGYHUVHHYHQWV6$(V
,ZLOOSURYLGH3$5$7(.RUWKHLUGHVLJQHHZLWKDFFHVVWRDQ\VRXUFHGRFXPHQWVIURPZKLFK
FDVHUHSRUWIRUPLQIRUPDWLRQPD\KDYHEHHQJHQHUDWHG
,XQGHUVWDQGWKDWWKHLQIRUPDWLRQLQWKLVSURWRFRODQGWKHUHIHUHQFHG,QYHVWLJDWRU¶V%URFKXUH
,%LVFRQILGHQWLDODQGWKDWLWVGLVFORVXUHWRDQ\WKLUGSDUWLHVRWKHUWKDQWKRVHLQYROYHGLQ
DSSURYLQJRUFRQGXFWLQJWKHVWXG\LVSURKLELWHG,ZLOOWDNHWKHQHFHVVDU\SUHFDXWLRQVWR
SURWHFWWKLVLQIRUPDWLRQIURPORVVLQDGYHUWHQWGLVFORVXUHRUDFFHVVE\WKLUGSDUWLHV
,ZLOOFRPSOHWHWKHVWXG\ZLWKLQWKHWLPHGHVLJQDWHG
0\VLJQDWXUHLQFRQMXQFWLRQZLWKWKHVLJQDWXUHRIWKHVSRQVRUFRQILUPVWKHDJUHHPHQWRI
ERWKSDUWLHVWKDWWKHFOLQLFDOVWXG\ZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKWKHSURWRFRODQGDOO
DSSOLFDEOHODZVDQGUHJXODWLRQVLQFOXGLQJEXWQRWOLPLWHGWRWKH,&+*XLGHOLQHIRU*&3WKH
&RGHRI)HGHUDO5HJXODWLRQV&)5DQGWKHHWKLFDOSULQFLSOHVWKDWKDYHWKHLURULJLQVLQWKH
'HFODUDWLRQRI+HOVLQNL
1RWKLQJLQWKLVGRFXPHQWLVLQWHQGHGWROLPLWWKHDXWKRULW\RIDSK\VLFLDQWRSURYLGH
HPHUJHQF\PHGLFDOFDUHXQGHUDSSOLFDEOHUHJXODWLRQV


,QYHVWLJDWRU6LJQDWXUH

'DWHRI6LJQDWXUH
''000<<<<

7LPHKRXUFORFN
WLPH]RQH





,QYHVWLJDWRU1DPHDQG7LWOHSULQW






2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


/,672)$%%5(9,$7,216
$%*
$UWHULDO%ORRG*DV
$%666,
$FXWH%DFWHULDO6NLQDQG6NLQ6WUXFWXUH,QIHFWLRQV
$&0
$OO&DXVH0RUWDOLW\
$(
$GYHUVH(YHQW
$,'6
$FTXLUHG,PPXQH'HILFLHQF\6\QGURPH
$/7
$ODQLQH$PLQRWUDQVIHUDVH
$3
$ONDOLQH3KRVSKDWDVH
$67
$VSDUWDWH$PLQRWUDQVIHUDVH
$8&
$UHD8QGHUWKH&RQFHQWUDWLRQ7LPH&XUYH
%0,
%RG\0DVV,QGH[
%3
%ORRG3UHVVXUH
ESP
EHDWVSHUPLQXWH
&$%3
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
FF
FXELFFHQWLPHWHU
&'
&OXVWHURIGLIIHUHQWLDWLRQ
&(
&OLQLFDOO\(YDOXDEOH
&)5
&RGHRI)HGHUDO5HJXODWLRQV
&,
&RQILGHQFH,QWHUYDO
&.
&UHDWLQHSKRVSKRNLQDVH
&PD[
0D[LPXP3ODVPD&RQFHQWUDWLRQ
&23'
&KURQLF2EVWUXFWLYH3XOPRQDU\'LVHDVH
&U&/
&UHDWLQLQH&OHDUDQFH
&6$
&OLQLFDO6WXG\$JUHHPHQW
&65
&OLQLFDO6WXG\5HSRUW
F666,
&RPSOLFDWHG6NLQDQG6NLQ6WUXFWXUH,QIHFWLRQ
&7
&RPSXWHG7RPRJUDSK\
&;5
&KHVW;UD\
'60&
'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH
(&*
(OHFWURFDUGLRJUDP
H&5)
(OHFWURQLF&DVH5HSRUW)RUP


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

(0$
(XURSHDQ0HGLFLQHV$JHQF\
(0($
$JHQF\IRUWKH(YDOXDWLRQRI0HGLFLQDO3URGXFWV
(27
(QGRI7UHDWPHQW
)'$
)RRGDQG'UXJ$GPLQLVWUDWLRQ
)'	&
)RRG'UXJDQG&RVPHWLF$FW
J
*UDYLW\
*&3
*RRG&OLQLFDO3UDFWLFH
**7
*DPPD*OXWDP\O7UDQVSHSWLGDVH
*,
*DVWURLQWHVWLQDO
+$3
+RVSLWDO$FTXLUHG3QHXPRQLD
+&$3
+HDOWKFDUH$VVRFLDWHG3QHXPRQLD
+'3(
+LJK'HQVLW\3RO\HWK\OHQH
K(5*
KXPDQ(WKHUjJRJR5HODWHG*HQH
ȕK&*
EHWD±KXPDQ&KRULRQLF*RQDGRWURSLQ
+,9
+XPDQ,PPXQRGHILFLHQF\9LUXV
+3)%
+HDOWK3URGXFWVDQG)RRG%UDQFK
,%
,QYHVWLJDWRU¶V%URFKXUH
,&)
,QIRUPHGFRQVHQWIRUP
,&+
,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQRI7HFKQLFDO5HTXLUHPHQWVIRU
5HJLVWUDWLRQRI3KDUPDFHXWLFDOVIRU+XPDQ8VH
,'6$
,QIHFWLRXV'LVHDVHV6RFLHW\RI$PHULFD
,(&
,QGHSHQGHQW(WKLFV&RPPLWWHH
,15
,QWHUQDWLRQDO1RUPDOL]HG5DWLR
,5%
,QVWLWXWLRQDO5HYLHZ%RDUG
,77
,QWHQW7R7UHDW
,8'
,QWUDXWHULQH'HYLFH
,[56
,QWHUDFWLYH9RLFH5HVSRQVH6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP
/&0606
/LTXLG&KURPDWRJUDSK\7DQGHP0DVV6SHFWURPHWU\
/'+
/DFWDWH'HK\GURJHQDVH
/)7
/LYHU)XQFWLRQ7HVW
OSI
/RZ3RZHU)LHOG


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

0'563
0XOWLGUXJ5HVLVWDQW6WUHSWRFRFFXVSQHXPRQLDH
0(
0LFURELRORJLFDOO\(YDOXDEOH
0HG'5$
0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
0,&
0LQLPXP,QKLELWRU\&RQFHQWUDWLRQ
PLFUR,77
0LFURELRORJLFDO,QWHQW7R7UHDW
056$
0HWKLFLOOLQ5HVLVWDQW6WDSK\ORFRFFXVDXUHXV
066$
0HWKLFLOOLQ6XVFHSWLEOH6WDSK\ORFRFFXVDXUHXV
1,
1RQ,QIHULRULW\
16
1RUPDO6DOLQHVRGLXPFKORULGH

3D2
3DUWLDOSUHVVXUHRIDUWHULDOR[\JHQ
3'
3KDUPDFRG\QDPLFV
3,
3ULQFLSDO,QYHVWLJDWRU
3.
3KDUPDFRNLQHWLFV
3257
3QHXPRQLD2XWFRPHV5HVHDUFK7HDP
37
3UHIHUUHG7HUP0HG'5$
37(
3RVW7KHUDS\(YDOXDWLRQYLVLW
39&
3RO\YLQ\O&KORULGH
TK
(YHU\KRXUV
TK
(YHU\KRXUV
47F
&RUUHFWHG47,QWHUYDO
47F%
47F%D]]HWW¶V&RUUHFWLRQ)RUPXOD
47F)
47F)ULGHULFLD¶V&RUUHFWLRQ)RUPXOD
5(%
5HVHDUFK(WKLFV%RDUG
55
5HVSLUDWRU\5DWH
6$(
6HULRXV$GYHUVH(YHQW
6$3
6WDWLVWLFDO$QDO\VLV3ODQ
6$6
6WDWLVWLFDO$QDO\VLV6RIWZDUH
6%3
6\VWROLF%ORRG3UHVVXUH
62&
6\VWHP2UJDQ&ODVV0HG'5$
VSS
VSHFLHVSOXUDO
VV
VWHDG\VWDWH


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7($(
7UHDWPHQW(PHUJHQW$GYHUVH(YHQW
7)/
7DEOH)LJXUHDQG/LVWLQJ
7*$
7KHUDSHXWLF*RRGV$GPLQLVWUDWLRQ
7PD[
7LPHWR0D[LPXP3ODVPD&RQFHQWUDWLRQ
8/1
8SSHU/LPLWRI1RUPDO
86
8QLWHG6WDWHV
:%&
:KLWH%ORRG&HOO


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


'(),1,7,216
7HUP
'HILQLWLRQ
5HJXODWLRQ
7KHWHUPUHJXODWLRQUHIHUVWRDOODSSOLFDEOHUHJXODWLRQVODZVDQGJXLGHOLQHV7KH
UHJXODWLRQVPD\EHLQWHUQDWLRQDOQDWLRQDORUORFDODQGPD\LQFOXGHEXWDUHQRW
OLPLWHGWRWKH&RGHRI)HGHUDO5HJXODWLRQV&)5WKH*RRG&OLQLFDO3UDFWLFH
*&3&RQVROLGDWHG*XLGHOLQH&DQDGDWKH,QWHUQDWLRQDO&RQIHUHQFHRQ
+DUPRQLVDWLRQ*XLGHOLQHIRU*RRG&OLQLFDO3UDFWLFHWKH7KHUDSHXWLF*RRGV
$GPLQLVWUDWLRQ$QQRWDWHG,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ*XLGHOLQHV
$XVWUDOLDWKH:RUOG0HGLFDO$VVRFLDWLRQ'HFODUDWLRQRI+HOVLQNL(WKLFDO
3ULQFLSOHVIRU0HGLFDO5HVHDUFK,QYROYLQJ+XPDQ6XEMHFWV
5HJXODWRU\DJHQF\
7KHWHUPUHJXODWRU\DJHQF\UHIHUVWRDOOKHDOWKDQGUHJXODWRU\DJHQFLHVZLWK
RYHUVLJKWUHVSRQVLELOLW\IRUWKHVWXG\7KHVHPD\EHLQWHUQDWLRQDOQDWLRQDORUORFDO
DQGPD\LQFOXGHEXWDUHQRWOLPLWHGWRWKH$XVWUDOLDQ7KHUDSHXWLF*RRGV
$GPLQLVWUDWLRQ7*$WKH&DQDGLDQ+HDOWK3URGXFWVDQG)RRG%UDQFK+3)%WKH
(XURSHDQ$JHQF\IRUWKH(YDOXDWLRQRI0HGLFLQDO3URGXFWV(0($WKH8QLWHG
6WDWHV86)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$
6SRQVRU
7KHWHUPVSRQVRUUHIHUVWREXWLVQRWOLPLWHGWRWKHVSRQVRUOLVWHGLQWKHIURQWRIWKLV
GRFXPHQWDQGDQ\FRQWUDFWUHVHDUFKRUJDQL]DWLRQWKDWLVEHLQJXVHGIRUWKHVWXG\
7HVWDUWLFOH
$Q\VWXG\GUXJGHYLFHELRORJLFDJHQWRUFRPSDUDWRULQFOXGLQJSODFHERXVHGLQ
VSRQVRUVWXGLHV)RUWHVWDUWLFOHDFFRXQWDELOLW\WKLVWHUPDSSOLHVWRWKHDERYHDUWLFOHV
ZKHQWKH\DUHUHTXLUHGE\WKHSURWRFRODQGVXSSOLHGVKLSSHGE\WKHVSRQVRU
LQFOXGLQJGLOXHQWVVXFKDVQRUPDOVDOLQH>16@IRULQMHFWLRQ
$GYHUVH
(YHQW
$QDGYHUVHHYHQW$(LVDQ\XQWRZDUGXQGHVLUHGRUXQSODQQHGHYHQW
LQWKHIRUPRIVLJQVV\PSWRPVGLVHDVHRUODERUDWRU\RU
SK\VLRORJLFREVHUYDWLRQVRFFXUULQJLQDSHUVRQJLYHQDWHVWDUWLFOH
RULQDFOLQLFDOVWXG\


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


35272&2/6<1236,6
6WXG\7LWOH
$3KDVH5DQGRPL]HG'RXEOH%OLQG0XOWL&HQWHU6WXG\WR&RPSDUH
WKH6DIHW\DQG(IILFDF\RI2PDGDF\FOLQH,932WR0R[LIOR[DFLQ,932
IRU7UHDWLQJ$GXOW6XEMHFWVZLWK&RPPXQLW\$FTXLUHG%DFWHULDO
3QHXPRQLD&$%3
&OLQLFDO3KDVH

6WXG\5DWLRQDOH
37.KHUHDIWHUUHIHUUHGWRDVRPDGDF\FOLQHLVWKHILUVWPHPEHURI
WKHDPLQRPHWK\OF\FOLQHFODVVRIDQWLELRWLFVZKLFKDUHVHPLV\QWKHWLF
GHULYDWLYHVRIWKHWHWUDF\FOLQHFODVV$VDFODVVWKHWHWUDF\FOLQHVKDYH
EHHQLQXVHIRUDSSUR[LPDWHO\\HDUV7KH\DUHZHOOWROHUDWHGDQG
KDYHSURYHQHIIHFWLYHLQWKHWUHDWPHQWRIDYDULHW\RIEDFWHULDOLQIHFWLRQV
2PDGDF\FOLQHZDVHYDOXDWHGLQD3KDVHVWXG\RIVXEMHFWVZLWK
FRPSOLFDWHGVNLQDQGVNLQVWUXFWXUHLQIHFWLRQF666,DQGD
VSRQVRUWHUPLQDWHG3KDVHVWXG\WKDWHQUROOHGVXEMHFWVZLWKF666,
2PDGDF\FOLQHZDVZHOOWROHUDWHGDQGGHPRQVWUDWHGHIILFDF\VLPLODUWR
DQHVWDEOLVKHGFRPSDUDWRUOLQH]ROLG
2PDGDF\FOLQHKDVEHHQVKRZQWRKDYHLQYLWURDFWLYLW\DJDLQVWWKHPRVW
FRPPRQW\SLFDODQGDW\SLFDOFDXVHVRI&$%3)XUWKHULWKDVEHHQ
VKRZQWREHHIIHFWLYHLQDQLPDOPRGHOVRIORZHUUHVSLUDWRU\WUDFW
LQIHFWLRQVFDXVHGE\6WUHSWRFRFFXVSQHXPRQLDHDQG+DHPRSKLOXV
LQIOXHQ]DH,WLVH[SHFWHGWKDWRPDGDF\FOLQHZLOODFKLHYHOHYHOVLQWKH
ORZHUUHVSLUDWRU\WUDFWFRPSDUDEOHWRUHODWHGWHWUDF\FOLQHVGR[\F\FOLQH
DQGWLJHF\FOLQHZKLFKKDYHEHHQXVHGWRVXFFHVVIXOO\WUHDWVXEMHFWVZLWK
&$%3
2PDGDF\FOLQHKDVGHPRQVWUDWHGDFWLYLW\DJDLQVWWKHPRVWFRPPRQ
&$%3SDWKRJHQVLQFOXGLQJLVRODWHVUHVLVWDQWWRVWDQGDUGVRIFDUH7KLV
VWXG\LVLQWHQGHGWRHYDOXDWHWKHVDIHW\DQGHIILFDF\RILQWUDYHQRXVLY
DQGRUDOSRRPDGDF\FOLQHDVFRPSDUHGWRLYDQGSRPR[LIOR[DFLQLQ
WKHWUHDWPHQWRIDGXOWVZLWK&$%3
6WXG\
2EMHFWLYHV
3ULPDU\REMHFWLYH
7KHSULPDU\REMHFWLYHRIWKLVVWXG\LVWRGHPRQVWUDWHWKDWRPDGDF\FOLQH
PJLYHYHU\KRXUVTKIRUGRVHVIROORZHGE\PJ
LYPJSRRQFHHYHU\KRXUVTKLVQRQLQIHULRUWRPR[LIOR[DFLQ
PJLYSRTKLQWKHWUHDWPHQWRIDGXOWVZLWK&$%3
6HFRQGDU\REMHFWLYHV
x 7RHYDOXDWHWKHVDIHW\RIRPDGDF\FOLQHLQWKHWUHDWPHQWRIDGXOW
VXEMHFWVZLWK&$%3LQWKH6DIHW\SRSXODWLRQ
x 7RHYDOXDWHWKH&OLQLFDO5HVSRQVHDFFRUGLQJWRWKHLGHQWLILHG
FDXVDWLYHSDWKRJHQ
x 7RHYDOXDWHWKHSKDUPDFRNLQHWLFV3.RIRPDGDF\FOLQHLQDGXOW


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

VXEMHFWVZLWK&$%3
6WXG\'HVLJQ
7KLVLVDUDQGRPL]HGDFWLYHFRPSDUDWRUFRQWUROOHGGRXEOHEOLQG
3KDVHVWXG\FRPSDULQJRPDGDF\FOLQHDQGPR[LIOR[DFLQLQWKH
WUHDWPHQWRIDGXOWVZLWK&$%33QHXPRQLD2XWFRPHV5HVHDUFK7HDP
>3257@5LVN&ODVV,,,,,RU,9%RWKLYDQGSRSKDVHVRIWKHVWXG\
ZLOOEHGRXEOHEOLQG(QUROOPHQWRIVXEMHFWVZLWKGLVHDVHFKDUDFWHUL]HG
DV32575LVN&ODVV,,ZLOOEHOLPLWHGWRQRPRUHWKDQRI
UDQGRPL]HGVXEMHFWV(QUROOPHQWRIVXEMHFWVZKRKDYHUHFHLYHGDVLQJOH
GRVHRIDQDOORZHGVKRUWDFWLQJDQWLELRWLFVHH$SSHQGL[ZLWKLQWKH
KRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHZLOOEHOLPLWHGWRQRPRUH
WKDQRIUDQGRPL]HGVXEMHFWV
$SSUR[LPDWH
'XUDWLRQRI
6XEMHFW
3DUWLFLSDWLRQ
6XEMHFWVZLOOSDUWLFLSDWHLQWKHVWXG\IRUDSSUR[LPDWHO\GD\V
)ROORZLQJ6FUHHQLQJHOLJLEOHVXEMHFWVZLOOEHUDQGRPO\DVVLJQHGWR
UHFHLYHWRGD\VRIWUHDWPHQWZLWKHLWKHURPDGDF\FOLQHRU
PR[LIOR[DFLQ$SRVWWKHUDS\HYDOXDWLRQYLVLWZLOORFFXUDSSUR[LPDWHO\
WRGD\VDIWHUWKHODVWGRVHRIWHVWDUWLFOHDQGDIROORZXSWHOHSKRQH
FRQWDFWZLOORFFXUDSSUR[LPDWHO\WRGD\VDIWHUWKHILUVWGRVHRIWHVW
DUWLFOH
$SSUR[LPDWH
'XUDWLRQRI
6WXG\
7KHVWXG\LVH[SHFWHGWREHFOLQLFDOO\FRPSOHWHLQDSSUR[LPDWHO\
PRQWKV
$SSUR[LPDWH
1XPEHURI
6XEMHFWV
UDQGRPL]HGVXEMHFWV
$SSUR[LPDWH
1XPEHURI6WXG\
&HQWHUV

'LDJQRVLVDQG
0DLQ&ULWHULDIRU
,QFOXVLRQ
 :ULWWHQDQGVLJQHGLQIRUPHGFRQVHQWPXVWEHREWDLQHGEHIRUHDQ\
SURWRFROVSHFLILFDVVHVVPHQWLVSHUIRUPHG
 0DOHRUIHPDOHDJH\HDUVRUROGHU
 +DVDWOHDVWRIWKHIROORZLQJV\PSWRPV
x &RXJK
x 3URGXFWLRQRISXUXOHQWVSXWXP
x '\VSQHDVKRUWQHVVRIEUHDWK
x 3OHXULWLFFKHVWSDLQ
 +DVDWOHDVW7:2RIWKHIROORZLQJDEQRUPDOYLWDOVLJQV
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRU
WHPSHUDWXUH!&>)@RU&>)@
x +\SRWHQVLRQZLWKV\VWROLFEORRGSUHVVXUH6%3PP+J
x +HDUWUDWH!EHDWVSHUPLQXWHESP
x 5HVSLUDWRU\UDWH55!EUHDWKVPLQXWH
 +DVDWOHDVWFOLQLFDOVLJQRUODERUDWRU\ILQGLQJDVVRFLDWHGZLWK


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

&$%3
x +\SR[HPLDSDUWLDOSUHVVXUHRIDUWHULDOR[\JHQ>3D2@
PP+JE\DUWHULDOEORRGJDV>$%*@RUR[\JHQVDWXUDWLRQ
E\SXOVHR[LPHWU\
x 3K\VLFDOH[DPLQDWLRQILQGLQJVRISXOPRQDU\FRQVROLGDWLRQHJ
GXOOQHVVRQSHUFXVVLRQEURQFKLDOEUHDWKVRXQGVRUHJRSKRQ\
x $QHOHYDWHGWRWDOZKLWHEORRGFHOO:%&FRXQW
!FHOOVPPRUOHXFRSHQLD:%&FHOOVPP
RUHOHYDWHGLPPDWXUHQHXWURSKLOV!EDQGIRUPVVHH
EDQGVFDOFXODWLRQLQ$SSHQGL[UHJDUGOHVVRIWRWDOSHULSKHUDO
:%&FRXQW
 5DGLRJUDSKLFDOO\FRQILUPHGSQHXPRQLDLHQHZRUSURJUHVVLYH
SXOPRQDU\LQILOWUDWHVRQFKHVW;UD\&;5RUFKHVWFRPSXWHG
WRPRJUDSK\&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDOSQHXPRQLD
ZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
 +DVGLVHDVHFDWHJRUL]HGDVEHLQJ32575LVN&ODVV,,,,,RU,9DW
6FUHHQLQJVHH32575LVN&ODVVFDOFXODWLRQLQ$SSHQGL[
 ,VH[SHFWHGWRUHTXLUHDPLQLPXPRIDWOHDVWGD\VRILYWKHUDS\IRU
WKHLQLWLDOWUHDWPHQWRI&$%3
 )HPDOHVPXVWKDYHDQHJDWLYHXULQHSUHJQDQF\WHVWDW6FUHHQLQJDQG
DJUHHWRFRPSO\ZLWKXVLQJDQDFFHSWDEOHPHWKRGRIELUWKFRQWURODV
SHU\RXUORFDOUHTXLUHPHQWVHJDEVWLQHQFHSRFRQWUDFHSWLYH
LQWUDXWHULQHGHYLFH>,8'@EDUULHUFRQWUDFHSWLRQ>FRQGRP@WXEDO
OLJDWLRQK\VWHUHFWRP\ELODWHUDORRSKRUHFWRP\SRVWPHQRSDXVDORU
YDVHFWRPL]HGSDUWQHUIURP6FUHHQLQJWKURXJKSRVWWKHUDS\
HYDOXDWLRQ37(0DOHVPXVWDJUHHWRXVHDQDFFHSWDEOHPHWKRGRI
ELUWKFRQWUROZLWKIHPDOHSDUWQHUVDQGPXVWQRWGRQDWHVSHUPIURP
6FUHHQLQJWKURXJK37(
0DLQ&ULWHULDIRU
([FOXVLRQ
 +DVUHFHLYHGRUPRUHGRVHVRIDSRWHQWLDOO\HIIHFWLYHV\VWHPLF
DQWLEDFWHULDOWUHDWPHQWZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRI
WHVWDUWLFOHDVXEMHFWZLOOEHFRQVLGHUHGWRKDYHUHFHLYHGD
SRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQWLIWKHSDWKRJHQ
LGHQWLILHGDVFDXVLQJLQIHFWLRQLVVKRZQWREHVXVFHSWLEOHWRWKH
DQWLEDFWHULDOJLYHQRULQWKHFLUFXPVWDQFHZKHUHDSDWKRJHQLVQRW
LGHQWLILHGLIWKHDQWLEDFWHULDODJHQWLVDSSURYHGIRUWUHDWPHQWRI
SQHXPRQLDRULVNQRZQWRKDYHDFWLYLW\DJDLQVWDQ\RIWKHOHDGLQJ
FDXVHVRI&$%3>HJ6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXV
LQIOXHQ]DH0RUD[HOODFDWDUUKDOLV6WDSK\ORFRFFXVDXUHXV
/HJLRQHOODSQHXPRSKLOD@(;&(37,216XEMHFWVPD\EHHOLJLEOH
GHVSLWHSULRUDQWLEDFWHULDOWKHUDS\LIWKH\KDYHEHHQWUHDWHGZLWKD
VLQJOHGRVHRIDVKRUWDFWLQJDQWLEDFWHULDOLHDQDQWLEDFWHULDOZKRVH
VWDQGDUGGRVLQJUHJLPHQLVPRUHIUHTXHQWWKDQRQFHSHUGD\VHHOLVW
LQ$SSHQGL[
 ,VNQRZQRUVXVSHFWHGWRKDYH&$%3FDXVHGE\DSDWKRJHQWKDWPD\


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

EHUHVLVWDQWWRHLWKHUWHVWDUWLFOHHJ.OHEVLHOODSQHXPRQLDH
3VHXGRPRQDVDHUXJLQRVD3QHXPRF\VWLVMLURYHFLREOLJDWH
DQDHUREHVP\FREDFWHULDIXQJDOSDWKRJHQV
 6XVSHFWHGRUFRQILUPHGHPS\HPDDSDUDSQHXPRQLFSOHXUDOHIIXVLRQ
LVQRWDQH[FOXVLRQFULWHULDRUOXQJDEVFHVV
 6XEMHFWVZLWKNQRZQRUVXVSHFWHGKRVSLWDODFTXLUHGSQHXPRQLD
+$3RUKHDOWKFDUHDVVRFLDWHGSQHXPRQLD+&$3+$3LVGHILQHG
DVSQHXPRQLDZLWKRQVHWRIFOLQLFDOVLJQVDQGV\PSWRPVKRXUV
DIWHUKRVSLWDOL]DWLRQLQDQDFXWHLQVXEMHFWKHDOWKFDUHIDFLOLW\
+&$3LVGHILQHGDVSQHXPRQLDDFTXLUHGLQDORQJWHUPFDUHRU
VXEDFXWHLQWHUPHGLDWHKHDOWKFDUHIDFLOLW\HJQXUVLQJKRPHRULQD
VXEMHFWDGPLWWHGZLWKSQHXPRQLDIROORZLQJDUHFHQWKRVSLWDOL]DWLRQ
GLVFKDUJHGZLWKLQGD\VRIFXUUHQWDGPLVVLRQDQGSUHYLRXVO\
KRVSLWDOL]HGIRUKRXUV
 +DVNQRZQRULVFOLQLFDOO\VXVSHFWHGWRKDYHRUPRUHRIWKH
IROORZLQJSULRUWRUDQGRPL]DWLRQ
x DODQLQHDPLQRWUDQVIHUDVH$/7RUDVSDUWDWHDPLQRWUDQVIHUDVH
$67î8SSHU/LPLWRI1RUPDO8/1
x WRWDOELOLUXELQ!î8/1RU
x HYLGHQFHRIHQGVWDJHOLYHUGLVHDVHHJDVFLWHVKHSDWLF
HQFHSKDORSDWK\
 +DVDNQRZQKLVWRU\RIKDYLQJH[SHULHQFHGXQVWDEOHFDUGLDFGLVHDVH
HJXQVWDEOHDQJLQDP\RFDUGLDOLQIDUFWLRQDFXWHFRQJHVWLYHKHDUW
IDLOXUHXQVWDEOHFDUGLDFDUUK\WKPLDHWFZLWKLQWKHPRQWKVSULRU
WR6FUHHQLQJ
 +DVD47LQWHUYDOFRUUHFWHGIRUKHDUWUDWHXVLQJ)ULGHULFLD¶VIRUPXOD
47F)!PVHFPDOHVRU!PVHFIHPDOHVDUHNQRZQWR
KDYHORQJ47V\QGURPHXVHGUXJVRISRWHQWLDOSURDUUK\WKPLFRU47
SURORQJLQJHIIHFWDQGRUSUHVHQWZLWKWDFK\DUUK\WKPLD
 5HTXLUHVDQ\IRUPRIGLDO\VLVHJKHPRGLDO\VLVSHULWRQHDOGLDO\VLV
 +LVWRU\RUHYLGHQFHRIVHYHUHUHQDOGLVHDVHRUKDVDFDOFXODWHG
FUHDWLQLQHFOHDUDQFH&U&ORIP/PLQXWHXVLQJWKH&RFNFURIW
*DXOWHTXDWLRQVHHHTXDWLRQLQ$SSHQGL[
(YLGHQFHRIVLJQLILFDQWLPPXQRORJLFDOGLVHDVHGHWHUPLQHGE\DQ\RI
WKHIROORZLQJ
x &XUUHQWRUDQWLFLSDWHGQHXWURSHQLDGHILQHG
DVQHXWURSKLOVPP
x .QRZQLQIHFWLRQZLWK+XPDQ,PPXQRGHILFLHQF\9LUXV+,9
DQGDFOXVWHURIGLIIHUHQWLDWLRQ&'FRXQWWKDWLVXQNQRZQRU
GRFXPHQWHGWREHFHOOVPPZLWKLQWKHODVW\HDURUDQ
$FTXLUHG,PPXQH'HILFLHQF\6\QGURPH$,'6GHILQLQJLOOQHVV


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x 7KHUHFHLSWRIFDQFHUFKHPRWKHUDS\UDGLRWKHUDS\RUSRWHQW
QRQFRUWLFRVWHURLGLPPXQRVXSSUHVVDQWGUXJVHJF\FORVSRULQH
D]DWKLRSULQHWDFUROLPXVLPPXQHPRGXODWLQJPRQRFORQDO
DQWLERG\WKHUDS\HWFZLWKLQWKHSDVWPRQWKVRUWKHUHFHLSWRI
FRUWLFRVWHURLGVHTXLYDOHQWWRRUJUHDWHUWKDQPJRISUHGQLVRQH
SHUGD\RUIRUPRUHWKDQGD\VLQWKHSULRUGD\VVHH
HTXLYDOHQWFRUWLFRVWHURLGGRVHVLQ$SSHQGL[
5HTXLUHVDFXWHSKDUPDFRORJLFLQWHUYHQWLRQWRVWDELOL]HEORRG
SUHVVXUH%3DQGRUDGHTXDWHWLVVXHSHUIXVLRQ25KDVHYLGHQFHRI
VHSWLFVKRFNGHILQHGE\$//RIWKHIROORZLQJ
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRU
WHPSHUDWXUH!&>)@RU&>)@
x +HDUWUDWH!EHDWVPLQXWH
x 55!EUHDWKVPLQXWH
x :%&!FHOOVPPRUFHOOVPPRU!
LPPDWXUHEDQGIRUPVVHHEDQGVFDOFXODWLRQLQ$SSHQGL[
UHJDUGOHVVRIWKHWRWDOSHULSKHUDO:%&FRXQW
x +\SRWHQVLRQZLWK6%3PP+JGHVSLWHDQLYIOXLGFKDOOHQJH
RIFFNJRYHUDPLQXWHSHULRG
x 3HUIXVLRQDEQRUPDOLWLHVWKDWPD\LQFOXGHEXWDUHQRWOLPLWHGWR
ODFWLFDFLGRVLVEORRGODFWDWHFRQFHQWUDWLRQPPRO/ROLJXULD
RUDFXWHDOWHUDWLRQLQPHQWDOVWDWXV
.QRZQRUVXVSHFWHGSULPDU\RUPHWDVWDWLFQHRSODVWLFOXQJGLVHDVH
DVSLUDWLRQSQHXPRQLDDFWLYHWXEHUFXORVLVF\VWLFILEURVLV
EURQFKLHFWDVLVEURQFKLDOREVWUXFWLRQHJSRVWREVWUXFWLYH
SQHXPRQLDFKURQLFQHXURORJLFDOGLVRUGHUSUHYHQWLQJFOHDUDQFHRI
SXOPRQDU\VHFUHWLRQVRUVHYHUHFKURQLFREVWUXFWLYHSXOPRQDU\
GLVHDVH&23'
3UHJQDQWRUQXUVLQJEUHDVWIHHGLQJZRPHQ
+DVDKLVWRU\RIK\SHUVHQVLWLYLW\RUDOOHUJLFUHDFWLRQHJ
DQDSK\OD[LVXUWLFDULDRWKHUVLJQLILFDQWUHDFWLRQWRDQ\WHWUDF\FOLQH
HJPLQRF\FOLQHGR[\F\FOLQHRUWLJHF\FOLQHRUWRDQ\
IOXRURTXLQRORQHDQWLELRWLF
+DVDKLVWRU\RISVHXGRWXPRUFHUHEULRUSULRUZLWKLQZHHNVSULRU
WR6FUHHQLQJRUSODQQHGFRQFRPLWDQWXVHRILVRWUHWLQRLQ
+DVDKLVWRU\RIV\VWHPLFOXSXVHU\WKHPDWRVXVRUOXSXVOLNH
V\QGURPH
+DVFXUUHQWHYLGHQFHRISDQFUHDWLWLV
+DVDKLVWRU\RIDFHQWUDOQHUYRXVV\VWHPGLVRUGHUWKDWPD\
SUHGLVSRVHWRVHL]XUHVRUORZHUWKHVHL]XUHWKUHVKROG
8VHRIRWKHULQYHVWLJDWLRQDOGUXJVZLWKLQKDOIOLYHVRUGD\VSULRU


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

WR6FUHHQLQJZKLFKHYHULVORQJHU
+DVSUHYLRXVO\EHHQWUHDWHGZLWKRPDGDF\FOLQHRUSUHYLRXVO\
HQUROOHGLQWKLVVWXG\
$Q\SODQQHGPHGLFDOLQWHUYHQWLRQWKDWPLJKWLQWHUIHUHZLWKWKH
DELOLW\WRFRPSO\ZLWKWKHVWXG\UHTXLUHPHQWV
+DVDOLIHH[SHFWDQF\RIOHVVWKDQRUHTXDOWRPRQWKVRUDQ\
FRQFRPLWDQWFRQGLWLRQWKDWLQWKHRSLQLRQRIWKHLQYHVWLJDWRULV
OLNHO\WRLQWHUIHUHZLWKHYDOXDWLRQRIWKHUHVSRQVHRIWKHLQIHFWLRQ
XQGHUVWXG\GHWHUPLQDWLRQRIDGYHUVHHYHQWV$(VRUFRPSOHWLRQRI
WKHH[SHFWHGFRXUVHRIWUHDWPHQW
3ULRUDQG
&RQFRPLWDQW
7UHDWPHQW
1RV\VWHPLFSULRURUFRQFRPLWDQWDQWLEDFWHULDOWKHUDS\LVDOORZHGRWKHU
WKDQDVLQJOHGRVHRIDVKRUWDFWLQJDQWLEDFWHULDOVHH([FOXVLRQ&ULWHULRQ
QXPEHUDQG$SSHQGL[ZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRI
WHVWDUWLFOH$OORWKHUPHGLFDWLRQVQRWSURKLELWHGE\WKHSURWRFRODQG
FRQVLGHUHGQHFHVVDU\IRUWKHVXEMHFW¶VZHOIDUHPD\EHDGPLQLVWHUHG
DQGRUFRQWLQXHGXQGHUWKHVXSHUYLVLRQRIWKHLQYHVWLJDWRU
7HVW$UWLFOHV
6XEMHFWVZLOOEHUDQGRPL]HGWRRIWKHIROORZLQJWUHDWPHQWDUPV
x 2PDGDF\FOLQH
x 0R[LIOR[DFLQ
'RVDJHDQG
$GPLQLVWUDWLRQ
x
2PDGDF\FOLQHPJLYTKIRUGRVHVIROORZHGE\PJ
LYTKVWDUWLQJKDIWHUILUVWGRVHZLWKWKHRSWLRQWRVZLWFK
WRPJSRTKDIWHUDPLQLPXPRIGD\VGRVHVRILY
WUHDWPHQW
x
0R[LIOR[DFLQPJLYTKZLWKDVLQJOHSODFHERLQIXVLRQWR
PDWFKWKHRPDGDF\FOLQHGRVLQJUHJLPHQKRXUVDIWHUWKHILUVW
GRVHRQ'D\ZLWKWKHRSWLRQWRVZLWFKWRPJSRTK
DIWHUDPLQLPXPRIGD\VGRVHVRILYWUHDWPHQW
6DIHW\(YDOXDWLRQ
x
3K\VLFDOH[DPV
x
$(VDQG6$(V
x
9LWDOVLJQV
x
/DERUDWRU\DVVHVVPHQWV
x
(OHFWURFDUGLRJUDP(&*
x
3UHJQDQF\DVVHVVPHQWV
(IILFDF\
(YDOXDWLRQ
x
,QRUGHUWRVDWLVI\GLIIHUHQWKHDOWKDXWKRULW\UHTXLUHPHQWVWKH
SULPDU\YDULDEOHVDVVHVVLQJHIILFDF\ZLOOEHWHVWHGZLWK
UHVSRQVHHQGSRLQWV
 6XFFHVVIXO(DUO\&OLQLFDO5HVSRQVHKRXUVDIWHUILUVW
GRVHZLOOEHGHWHUPLQHGSURJUDPPDWLFDOO\DQGGHILQHGDV
VXUYLYDOZLWKLPSURYHPHQWLQDWOHDVWRIVXEMHFW
V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQ


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

G\VSQHDDVDVVHVVHGE\WKHLQYHVWLJDWRUZLWKRXW
GHWHULRUDWLRQLQDQ\RIWKHVHV\PSWRPV
 6XFFHVVIXO,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVH
DWWKH37(YLVLWGHILQHGDVVXUYLYDODIWHUFRPSOHWLRQRIDWHVW
DUWLFOHUHJLPHQZLWKUHVROXWLRQRIVLJQVDQGV\PSWRPVRI
WKHLQIHFWLRQWRWKHH[WHQWWKDWIXUWKHUDQWLEDFWHULDOWKHUDS\LV
QRWQHFHVVDU\
x
$VVHVVPHQWRIVLJQVDQGV\PSWRPVRI&$%3E\WKH
LQYHVWLJDWRU
x
0LFURELRORJLFDODVVHVVPHQWRIWKHLQIHFWLRQ
x
$VVHVVPHQWRIFOLQLFDOUHVSRQVH
+HDOWK2XWFRPHV
$VVHVVPHQW
x
5HVRXUFHXWLOL]DWLRQ
3KDUPDFRNLQHWLFV
x
3RSXODWLRQ3.DQDO\VLV
6WDWLVWLFDO
$QDO\VLV
$QXPEHURIVXEMHFWSRSXODWLRQVKDYHEHHQGHILQHGIRUWKHYDULRXV
DQDO\VHVRIHIILFDF\DQGVDIHW\DVIROORZV
x 7KHLQWHQWWRWUHDW,77SRSXODWLRQZLOOFRQVLVWRIDOO
UDQGRPL]HGVXEMHFWV
x 7KHPLFURELRORJLFDOLQWHQWWRWUHDWPLFUR,77SRSXODWLRQZLOO
FRQVLVWRIVXEMHFWVLQWKH,77SRSXODWLRQZKRKDYHDWOHDVW
FDXVDWLYHSDWKRJHQLGHQWLILHGDW6FUHHQLQJIURPFXOWXUHRID
UHVSLUDWRU\VSHFLPHQHJUHVSLUDWRU\IOXLGREWDLQHGE\
EURQFKRDOYHRODUODYDJHRUEURQFKRVFRS\SOHXUDOIOXLGREWDLQHG
E\WKRUDFHQWHVLVRUH[SHFWRUDWHGRULQGXFHGVSXWXPPHHWLQJ
DGHTXDF\FULWHULDFXOWXUHRIEORRGRUIURPDFXOWXUH
LQGHSHQGHQWPHWKRGHJSRVLWLYHXULQDU\DQWLJHQWHVWIRU
6WUHSWRFRFFXVSQHXPRQLDHRU/HJLRQHOODSQHXPRSKLODRU
SRVLWLYHVHURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPD
SQHXPRQLDHRU&KODP\GRSKLODSQHXPRQLDH
x 7KHFOLQLFDOO\HYDOXDEOH&(SRSXODWLRQZLOOFRQVLVWRIDOO,77
VXEMHFWVZKRUHFHLYHGWHVWDUWLFOHKDYHDTXDOLI\LQJ&$%3DQ
DVVHVVPHQWRIRXWFRPHDQGPHHWDOORWKHUHYDOXDELOLW\FULWHULD
GHWDLOHGLQWKH6WDWLVWLFDO$QDO\VLV3ODQ6$3
x 7KHPLFURELRORJLFDOO\HYDOXDEOH0(SRSXODWLRQZLOOLQFOXGH
VXEMHFWVLQWKH&(SRSXODWLRQZKRKDYHDWOHDVWFDXVDWLYH
SDWKRJHQLGHQWLILHGDW6FUHHQLQJ
x 7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWV
ZKRUHFHLYHWHVWDUWLFOH
$VLGHGFRQILGHQFHLQWHUYDO&,DSSURDFKIRUWKHGLIIHUHQFHLQ
WKHUDWHRIHDUO\FOLQLFDOVXFFHVVLQWKH,77SRSXODWLRQSULPDU\DQDO\VLV
IRUWKH86)'$ZLOOEHXVHGWRWHVWIRUQRQLQIHULRULW\1,RIWKH


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

RPDGDF\FOLQHDUPFRPSDUHGWRWKHPR[LIOR[DFLQDUP)RUWKHSULPDU\
DQDO\VLVIRUWKH(XURSHDQ0HGLFLQHV$JHQF\(0$&,VIRUWKH
GLIIHUHQFHLQWKHUDWHRIFOLQLFDOVXFFHVVDW37(LQWKH,77DQG&(
SRSXODWLRQVZLOOEHXVHGWRWHVWIRUWKH1,RIWKHRPDGDF\FOLQHDUP
FRPSDUHGWRWKHPR[LIOR[DFLQDUP
6DIHW\ZLOOEHDVVHVVHGWKURXJKWKHXVHRIVXPPDU\VWDWLVWLFVDQGFOLQLFDO
UHYLHZRIUHSRUWHG$(VFKDQJHVLQYLWDOVLJQV(&*VDQGODERUDWRU\
UHVXOWVREWDLQHGIURPEORRGVDPSOHVWDNHQGXULQJWKHVWXG\
'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH
$'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH'60&LQGHSHQGHQWRIWKH
VSRQVRUZLOOSURYLGHRQJRLQJPRQLWRULQJRIVDIHW\GDWD'DWDZLOOEH
SURYLGHGWRWKH'60&DVWUHDWPHQW$DQGWUHDWPHQW%
5DWLRQDOHIRU
1XPEHURI
6XEMHFWV
7KHVWXG\LVGHVLJQHGWRVKRZ1,LQWKHSULPDU\HIILFDF\RXWFRPHRI
(DUO\&OLQLFDO5HVSRQVHDWKRXUVIROORZLQJWKHILUVWGRVHRIWHVW
DUWLFOHLQWKH,77SRSXODWLRQ$Q1,PDUJLQRIZLOOEHXVHGIRUWKH
DQDO\VLVLQWKH,77SRSXODWLRQ7KH1,PDUJLQZDVEDVHGRQDQDQDO\VLV
RIWKHKLVWRULFDOGDWDUHJDUGLQJWKHWUHDWPHQWHIIHFWRIDQWLELRWLFVLQ
SQHXPRQLD
7KHVDPSOHVL]HGHWHUPLQDWLRQLVEDVHGRQHQVXULQJVXIILFLHQWSRZHUIRU
WKHVHFRQGDU\HIILFDF\DQDO\VHVRI,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(LQWKH&(DQG,77SRSXODWLRQVFRSULPDU\HIILFDF\
RXWFRPHVIRU(0$DVZHOODVWKHSULPDU\HIILFDF\DQDO\VLVRI(DUO\
&OLQLFDO5HVSRQVHHIILFDF\RXWFRPHIRU)'$
)RUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQW
LQWKH,77SRSXODWLRQ32575LVN&ODVV,,,DQG,9DVVXPLQJDQ
RXWFRPHUDWHRILQERWKWUHDWPHQWJURXSV1,PDUJLQRI
SRZHUDQGDVLGHGDOSKDOHYHORIVLQFH&$%3VWXG\LVEHLQJ
FRQGXFWHGXVLQJWKHVDPSOHVL]HGHWHUPLQDWLRQPHWKRGRI)DUULQJWRQ
DQG0DQQLQJ)DUULQJWRQDQG0DQQLQJDWRWDORIVXEMHFWV
32575LVN&ODVV,,,DQG,9DUHUHTXLUHG$VVXPLQJDQ
HYDOXDELOLW\UDWHVXEMHFWVZLOOEHDYDLODEOHLQWKH&(SRSXODWLRQ
$VVXPLQJDQUHVSRQVHUDWHLQERWKWUHDWPHQWJURXSVD1,
PDUJLQVLGHGDOSKDOHYHORIWKHUHLVSRZHUWRVKRZ1,
IRU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(LQWKH&(
SRSXODWLRQ
,IRIHQUROOHGVXEMHFWVDUHDVVXPHGWRKDYH&$%3RI32575LVN
&ODVV,,DWRWDORIVXEMHFWVDUHUHTXLUHG)RUWKH(DUO\&OLQLFDO
5HVSRQVHSULPDU\HIILFDF\HQGSRLQWZLWKVXEMHFWVLQWKH,77
SRSXODWLRQDUHVSRQVHUDWHRIIRUERWKWUHDWPHQWJURXSVZLWKD1,
PDUJLQRIDVLGHGDOSKDOHYHORIWKHUHLVDSRZHUWR
VKRZ1,$VVXPLQJWKHPLFURELRORJLFDOHYDOXDELOLW\UDWHLVDWRWDO
RIVXEMHFWVDUHH[SHFWHGWREHLQWKHPLFUR,77SRSXODWLRQ


2PDGDF\FOLQH37.


37.&$%3±9HUVLRQ

,1'
2&7

,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7KXVVXEMHFWVSURYLGHVVXIILFLHQWSRZHUIRUWKHSULPDU\HIILFDF\
DQDO\VHVIRUERWKWKH)'$DQG(0$UHJXODWRU\DXWKRULWLHV
(WKLFDO
&RQVLGHUDWLRQV
7KLVVWXG\ZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKDSSOLFDEOHODZVDQG
UHJXODWLRQVLQFOXGLQJEXWQRWOLPLWHGWRWKH,QWHUQDWLRQDO&RQIHUHQFHRQ
+DUPRQLVDWLRQ*XLGHOLQHRI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI
3KDUPDFHXWLFDOVIRU+XPDQXVH,&+*XLGHOLQHIRU*RRG&OLQLFDO
3UDFWLFH*&3DQGWKHHWKLFDOSULQFLSOHVWKDWKDYHWKHLURULJLQVLQWKH
'HFODUDWLRQRI+HOVLQNL7KHLQVWLWXWLRQDOUHYLHZERDUG
,5%LQGHSHQGHQWHWKLFVFRPPLWWHH,(&UHVHDUFKHWKLFVERDUG5(%
PXVWUHYLHZDQGDSSURYHWKHSURWRFRODQGLQIRUPHGFRQVHQWIRUP,&)
EHIRUHDQ\VXEMHFWVDUHHQUROOHG7KHVXEMHFWPXVWEHFRQVHQWHGXVLQJ
WKHDSSURYHG,&)EHIRUHDQ\SURFHGXUHVVSHFLILHGLQWKHSURWRFRODUH
SHUIRUPHG


2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


678'<)/2:&+$57
6WXG\3KDVH
6FUHHQLQJE
'RXEOH%OLQG3KDVH
)ROORZXS3KDVH


LY7UHDWPHQW3KDVH
LYRUSR7UHDWPHQW3KDVH


6WXG\'D\D

'D\
'D\
'D\
'D\
'D\ 'D\F 'D\
'D\F
(27G
37(H
)LQDO
)ROORZXSI


LYGRVH LYGRVH










6FUHHQLQJDQG(OLJLELOLW\3URFHGXUHV
6LJQHG,QIRUPHG&RQVHQWJ
;












0HGLFDO+LVWRU\FXUUHQWPHGLFDO
FRQGLWLRQVGHPRJUDSK\
;












$VVHVVPHQWRI&$%3V\PSWRP
VHYHULW\K
;


;
;
;
;
;
;
;
;
;

&KHVW;UD\RU&7VFDQL
;












32575LVN&ODVV$%*RUSXOVH
R[LPHWU\M
;












%ORRGDQGXULQHVDPSOHVIRUORFDO
ODEKHPDWRORJ\FKHPLVWU\XULQH
WHVWVSUHJQDQF\N
;












5HYLHZRI,QFOXVLRQDQG
([FOXVLRQFULWHULD5DQGRPL]DWLRQ
LI(OLJLEOH
;












&OLQLFDO3URFHGXUHVDQG7HVW$UWLFOH$GPLQLVWUDWLRQ
7HVW$UWLFOH$GPLQLVWUDWLRQDQG
$FFRXQWDELOLW\O

;
;
;
;
;
;
;
;
;
;


3K\VLFDOH[DPLQDWLRQP
;


;
;
;
;
;
;
;
;
;

9LWDOVLJQVQ
;
;R
;R
;R
;
;
;
;
;
;
;
;

OHDG(&*
;
;S

;S




;

;




2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

6WXG\3KDVH
6FUHHQLQJE
'RXEOH%OLQG3KDVH
)ROORZXS3KDVH


LY7UHDWPHQW3KDVH
LYRUSR7UHDWPHQW3KDVH


6WXG\'D\D

'D\
'D\
'D\
'D\
'D\ 'D\F 'D\
'D\F
(27G
37(H
)LQDO
)ROORZXSI


LYGRVH LYGRVH










%ORRGIRU&HQWUDO/DEWHVWV
KHPDWRORJ\FKHPLVWU\SUHJQDQF\
;T




;


;
;
;T
;T

$GYHUVH(YHQWVU
;
;;
3ULRU	&RQFRPLWDQW
0HGLFDWLRQVV
;
;;
3ODVPDVDPSOHVLQKHSDULQIRU
3.DQDO\VHVW

;
;
;
;
;
;
;
;




$VVHVVPHQWIRUSR6ZLWFKRU
QHHGIRUFRQWLQXHGWKHUDS\X





;
;
;
;
;



,QYHVWLJDWRU¶V$VVHVVPHQWRI
&OLQLFDO5HVSRQVH










;
;

0LFURELRORJLFDO3URFHGXUHV
%ORRGFXOWXUHY
;
$V&OLQLFDOO\,QGLFDWHG



5HVSLUDWRU\FXOWXUH	*UDP
VWDLQZ
;









;
;

8ULQHIRU/RFDOODE/HJLRQHOOD
SQHXPRSKLODDQG6WUHSWRFRFFXV
SQHXPRQLDHDQWLJHQWHVW
;












%ORRGIRU&HQWUDOODE/HJLRQHOOD
SQHXPRSKLOD0\FRSODVPD
SQHXPRQLDH	&KODP\GRSKLOD
SQHXPRQLDHVHURORJ\
;










;

$%* DUWHULDOEORRGJDV$( DGYHUVHHYHQW%3 EORRGSUHVVXUHȕK&* EHWD±KXPDQ&KRULRQLF*RQDGRWURSLQ&$%3 FRPPXQLW\DFTXLUHGEDFWHULDOSQHXPRQLD
&7 FRPSXWHGWRPRJUDSK\&;5 FKHVW;UD\(&* HOHFWURFDUGLRJUDPH&5) HOHFWURQLFFDVHUHSRUWIRUP(27 HQGRIWUHDWPHQW,&) LQIRUPHGFRQVHQWIRUP


2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

,[56 ,QWHUDFWLYH9RLFH5HVSRQVH6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP3. SKDUPDFRNLQHWLFV3257 3QHXPRQLD2XWFRPHV5HVHDUFK7HDP37( SRVW
WKHUDS\HYDOXDWLRQ6$( VHULRXVDGYHUVHHYHQW
D6WXG\'D\LVWKHILUVWGD\RIWHVWDUWLFOHDGPLQLVWUDWLRQ6XEVHTXHQWVWXG\GD\VPD\EHFRQVHFXWLYHFDOHQGDUGD\V
E)ROORZLQJWKHVLJQLQJRIDQ,&)DOO6FUHHQLQJHYDOXDWLRQVZLWKWKHH[FHSWLRQRIWKHEORRGFXOWXUHVDPSOHFROOHFWLRQDQGUDGLRJUDSKLFFRQILUPDWLRQRISQHXPRQLD
VKRXOGEHFRPSOHWHGZLWKLQWKHKRXUVSULRUWRUDQGRPL]DWLRQ7KHEORRGFXOWXUHVDPSOHFROOHFWLRQDQGUDGLRJUDSKLFFRQILUPDWLRQRISQHXPRQLDVKRXOGEH
FRPSOHWHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
F7KH'D\YLVLWLVRSWLRQDOIRUVXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPDKRVSLWDOVHWWLQJ$'D\YLVLWVKRXOGEHFRQGXFWHG
IRUVXEMHFWVZLWKWUHDWPHQWH[WHQGLQJEH\RQGGD\VXQOHVVWKLVYLVLWFRLQFLGHVZLWKWKH(27YLVLW
G7REHFRQGXFWHGRQWKHGD\RIRUZLWKLQGD\VIROORZLQJWKHODVWGRVHRIWHVWDUWLFOH6KRXOGDOVREHFRQGXFWHGIRUDQ\SUHPDWXUHO\ZLWKGUDZQVXEMHFW
H7REHFRQGXFWHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\
I7REHFRQGXFWHGWRGD\VDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWHVWDUWLFOH7KH)LQDO)ROORZXSDVVHVVPHQWPD\EHFRQGXFWHGYLDWHOHSKRQHFRQWDFWRUE\DQRWKHU
LQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUHFRQVLGHUHGWREH&OLQLFDO6XFFHVVHVDQGKDGQR$(VRUFOLQLFDOO\VLJQLILFDQWODERUDWRU\RU(&*DEQRUPDOLWLHVQRWHGDWRU
DIWHUWKH37(YLVLW2WKHUZLVHWKHYLVLWPXVWEHFRQGXFWHGLQSHUVRQ
J:ULWWHQDQGVLJQHG,&)PXVWEHREWDLQHGEHIRUHDQ\DVVHVVPHQWLVSHUIRUPHG
K7KHLQYHVWLJDWRUVKRXOGDVVHVVWKHVHYHULW\RIWKHVXEMHFW¶V&$%3V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDEDVHGXSRQWKH&RPPXQLW\
$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWLQ$SSHQGL[
L 6XEMHFWVPXVWKDYHDFRQILUPLQJ&;5RU&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDOSQHXPRQLDZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
M 2QO\VXEMHFWVZLWKD32575LVN&ODVVRI,,,,,RU,9DUHHOLJLEOHIRUHQUROOPHQWVHH$SSHQGL[
N/RFDOODERUDWRU\KHPDWRORJ\DQGFKHPLVWU\HYDOXDWLRQVUHTXLUHGIRUDVVHVVLQJVXEMHFWHOLJLELOLW\XULQHGLSVWLFNWHVWDXULQHSUHJQDQF\WHVWIRUZRPHQRQO\VHUXP
WUDQVDPLQDVHRUELOLUXELQOHYHOV
O 6XEMHFWVVKRXOGUHFHLYHWKHLUILUVWGRVHRIWHVWDUWLFOHZLWKLQKRXUVDIWHUUDQGRPL]DWLRQ7KHWRWDOGXUDWLRQRIWHVWDUWLFOHWKHUDS\LYSOXVSRIRUDOOVXEMHFWVZLOOEHDW
OHDVWGD\VDQGQRPRUHWKDQGD\V7KHSKDUPDFLVWRUGHVLJQHHZLOOEHXQEOLQGHGWRSUHSDUHDSSURSULDWHLYGRVHVRIWKH,[56LGHQWLILHGWHVWDUWLFOH$QXQEOLQGHG
ILHOGPRQLWRUZLOOSHUIRUPGUXJDFFRXQWDELOLW\RILYPHGLFDWLRQDQGUHYLHZWKHSKDUPDFLVW¶VUHFRUGV2UDOWHVWDUWLFOHPD\EHGLVSHQVHGDQGUHFRQFLOHGE\EOLQGHGRU
XQEOLQGHGSHUVRQQHO0RQLWRULQJRIRUDOPHGLFDWLRQDFFRXQWDELOLW\ZLOOEHSHUIRUPHGE\WKHEOLQGHGRUXQEOLQGHGILHOGPRQLWRU6XEMHFWVGLVFKDUJHGZLWKSRWHVW
DUWLFOHZLOOEHDVNHGWRUHWXUQDOOXQXVHGWHVWDUWLFOHDQGSDFNDJLQJDWHDFKYLVLWVHH6HFWLRQ$WWKH(27YLVLWVXEMHFWVGLVFKDUJHGZLWKSRWHVWDUWLFOHZLOOUHWXUQDQ\
UHPDLQLQJXQXVHGSRWHVWDUWLFOHDQGVLWHVWDIIZLOOSHIRUPDFFRXQWDELOLW\
P$IXOOSK\VLFDOH[DPLQDWLRQZLOOEHFRPSOHWHGDW6FUHHQLQJVHH6HFWLRQWKHUHDIWHURQO\FKDQJHVIURP6FUHHQLQJPHDVXUHPHQWVVKRXOGEHUHFRUGHGDV$(VLQWKH
H&5)V


2PDGDF\FOLQH37.

37.&$%39HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

Q9LWDOVLJQVLQFOXGHERG\WHPSHUDWXUH%3SXOVHKHDUWUDWHDQG55
R)RUWKHILUVWGRVHVRIWHVWDUWLFOHKHDUWUDWHDQG%3VKRXOGEHUHFRUGHGDWWKHIROORZLQJWLPHVMXVWSULRUWRWKHILUVWLQIXVLRQZLWKLQPLQXWHVDIWHUWKHVWDUWRIWKH
ILUVWLQIXVLRQDQGDWKRXUVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQVHH7DEOHDQG6HFWLRQ
S$OHDG(&*VKRXOGEHSHUIRUPHGMXVWSULRUZLWKLQPLQXWHVDQGPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWDQGWKLUGGRVHVRIWHVWDUWLFOHVHH
6HFWLRQ
T%ORRGZLOOEHFROOHFWHGIURPDOOIHPDOHVXEMHFWVIRUDVHUXPȕK&*SUHJQDQF\WHVWDWWKH&HQWUDO/DERUDWRU\DWWKH6FUHHQLQJ(27DQG37(YLVLWV
U $VXEMHFW¶V$(VDQG6$(VZLOOEHUHFRUGHGDQGUHSRUWHGIURPVLJQLQJRIWKH,&)WRWKH)LQDO)ROORZXSDVVHVVPHQW
V 7UHDWPHQWVWKDWKDYHEHHQDGPLQLVWHUHGZLWKLQWKHGD\VSULRUWRWKHGDWHRIVLJQLQJWKH,&)RUGXULQJWKH6FUHHQLQJSKDVHZLOOEHUHFRUGHGLQWKHH&5)$OOPHGLFDWLRQV
DQGVLJQLILFDQWQRQGUXJWKHUDSLHVDGPLQLVWHUHGDIWHUWKHILUVWGRVHRIWHVWDUWLFOHPXVWEHUHFRUGHGLQWKHH&5)VHH6HFWLRQ
W 8SWRVDPSOHVZLOOEHFROOHFWHGSHUVXEMHFWEHWZHHQVWXG\'D\VWR7KH3.VDPSOHFROOHFWLRQVFKHGXOHIRUWKHLQGLYLGXDOVXEMHFWZLOOEHSURYLGHGE\WKHVSRQVRUVHH
6HFWLRQ
X$WDQ\WLPHDIWHUWKHILUVWGD\VRILYWUHDWPHQWDIWHULYGRVHVWKHVXEMHFWPD\EHVZLWFKHGWRSRPHGLFDWLRQEDVHGXSRQGHWHUPLQDWLRQRIFOLQLFDOVWDELOLW\5HIHUWR
SURWRFRO6HFWLRQIRUUHTXLUHGFULWHULDWRVZLWFKWRSRWUHDWPHQW7KHILUVWSRGRVHVKRXOGEHDGPLQLVWHUHGLQWKHPRUQLQJKRXUVDIWHUWKHODVWLYGRVH
$WWKHLQYHVWLJDWRU¶VGLVFUHWLRQDOOWKHUDS\PD\EHGLVFRQWLQXHGDIWHUWKHVHYHQWKGD\RIWUHDWPHQWZKHQWKHLQIHFWLRQLVFRQVLGHUHGFOLQLFDOO\FXUHGEDVHGRQ
QRUPDOL]DWLRQRIWKHFOLQLFDOVLJQVDQGV\PSWRPVRILQIHFWLRQDQGWKHLQYHVWLJDWRU¶VFOLQLFDODVVHVVPHQWWKDWFRQWLQXHGV\VWHPLFDQWLEDFWHULDOWKHUDS\LVQRORQJHU
QHHGHG
Y,IEDFWHULDDUHLVRODWHGIURPEDVHOLQHEORRGFXOWXUHVUHSHDWEORRGFXOWXUHVVKRXOGEHFROOHFWHGRQWKHGD\WKDWWKHSRVLWLYHEORRGFXOWXUHLVGHWHFWHG,IVXEVHTXHQWEORRG
FXOWXUHVDUHDOVRSRVLWLYHUHSHDWWKHEORRGFXOWXUHVDVQHFHVVDU\XQWLOQHJDWLYHEORRGFXOWXUHVDUHREWDLQHGVHH6HFWLRQ
Z&XOWXUHDQG*UDPVWDLQIURPDQDGHTXDWHTXDOLW\VSXWXPVSHFLPHQRURWKHUUHVSLUDWRU\VSHFLPHQ$WWKH(27DQGRU37(YLVLWUHVSLUDWRU\VSHFLPHQFXOWXUHVDQG
*UDPVWDLQVVKRXOGEHREWDLQHGRQO\IRUVXEMHFWVZKRDUH&OLQLFDO)DLOXUHVDQGUHTXLUHDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3VHH6HFWLRQ



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


,1752'8&7,21

%DFNJURXQG
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD&$%3LVDOHDGLQJFDXVHRIPRUELGLW\DQG
PRUWDOLW\LQWKH8QLWHG6WDWHV86DQGWKURXJKRXWWKHZRUOG0DQGHOOHWDO)RXUWR
PLOOLRQFDVHVRI&$%3RFFXUSHU\HDULQWKH86UHVXOWLQJLQPLOOLRQSK\VLFLDQYLVLWV
KRVSLWDOL]DWLRQVDQGWHQVRIWKRXVDQGVRIGHDWKV7KHWRWDOFRVWRI&$%3WRWKHDQQXDO
86KHDOWKFDUHEXGJHWH[FHHGVELOOLRQLQDGMXVWHGGROODUV1LHGHUPDQHWDO
)XUWKHUPRUHWKHUHLVLQFUHDVLQJUHVLVWDQFHWRDQWLELRWLFVDPRQJFRPPRQSDWKRJHQVZLWKD
UHVXOWLQJFULWLFDOQHHGIRUQHZDQWLELRWLFV6SHOOEHUJHWDO%DFWHULDOUHVLVWDQFHWRWKH
PRVWIUHTXHQWO\SUHVFULEHGFXUUHQWO\DYDLODEOHDQWLELRWLFVKDVOLPLWHGWKHLUSRWHQWLDOWRWUHDW
LQIHFWLRQVZKLFKSUHYHQWVWKHLUXVHDVDILUVWOLQHHPSLULFPRQRWKHUDS\0HWKLFLOOLQUHVLVWDQW
6WDSK\ORFRFFXVDXUHXV056$DQGPXOWLGUXJUHVLVWDQW6WUHSWRFRFFXVSQHXPRQLDH0'563
LQWKHFRPPXQLW\KDYHSRVHGWUHDWPHQWFKDOOHQJHVEHFDXVHRIUHVLVWDQFHWRSHQLFLOOLQVUHVLVWDQFH
UDWHIRUERWKFHSKDORVSRULQVDQGUHVSHFWLYHO\IRUFHIWULD[RQHPDFUROLGHV
DQGUHVSHFWLYHO\IRUD]LWKURP\FLQHU\WKURP\FLQDQGTXLQRORQHVDQG
UHVSHFWLYHO\IRUOHYRIOR[DFLQLQ&$%3,QDGGLWLRQWKHJURZLQJFRQFHUQDERXW³FROODWHUDO
GDPDJH´DVVRFLDWHGZLWKXVHRITXLQRORQHDQGEHWDODFWDPFODVVDQWLELRWLFVIXUWKHUXQGHUVFRUHV
WKHQHHGIRUQHZDQWLELRWLFWUHDWPHQWRSWLRQVIRU&$%33DWHUVRQ'/)DLOXUHRIWKHUDS\
GXHWRUHVLVWDQFHZLOOFRQWLQXHWRFRQWULEXWHWRWKHPRUELGLW\DQGPRUWDOLW\RI&$%3DQG
WUHDWPHQWIDLOXUHVRIPLOGGLVHDVHZLOOUHVXOWLQLQFUHDVHGKRVSLWDOL]DWLRQVDQGFRQWULEXWHWR
LQFUHDVHGKHDOWKFDUHFRVWV
7KHLQYHVWLJDWLRQDOSURGXFW±37.KHUHDIWHUUHIHUUHGWRDVRPDGDF\FOLQH±LVWKHILUVW
PHPEHURIWKHDPLQRPHWK\OF\FOLQHFODVVRIDQWLELRWLFVZKLFKDUHVHPLV\QWKHWLFGHULYDWLYHVRI
WKHWHWUDF\FOLQHFODVV1RHOHWDO$VDFODVVWKHWHWUDF\FOLQHVKDYHEHHQLQXVHIRU
DSSUR[LPDWHO\\HDUV7KH\DUHZHOOWROHUDWHGDQGKDYHSURYHQHIIHFWLYHLQWKHWUHDWPHQWRID
YDULHW\RIEDFWHULDOLQIHFWLRQV
2PDGDF\FOLQHLVYHU\DFWLYHLQYLWURDJDLQVWPRVW*UDPSRVLWLYHSDWKRJHQV,WDOVRH[KLELWV
DFWLYLW\DJDLQVWDW\SLFDOSDWKRJHQVHJ/HJLRQHOODVSHFLHVVSS&KODP\GRSKLODVSSDQGVRPH
DQDHURELFDQG*UDPQHJDWLYHSDWKRJHQV7KHGUXJLVDFWLYHDJDLQVWVWUDLQVH[SUHVVLQJERWK
PHFKDQLVPVRIWHWUDF\FOLQHUHVLVWDQFHDVZHOODVVWUDLQVWKDWDUHUHVLVWDQWWRFXUUHQWO\DYDLODEOH
DQWLELRWLFVLQFOXGLQJPHWKLFLOOLQYDQFRP\FLQHU\WKURP\FLQDQGFLSURIOR[DFLQ2PDGDF\FOLQH
,QYHVWLJDWRU¶V%URFKXUH>,%@3DUDWHN
2PDGDF\FOLQHKDVEHHQVKRZQWRKDYHLQYLWURDFWLYLW\DJDLQVWWKHPRVWFRPPRQW\SLFDODQG
DW\SLFDOFDXVHVRI&$%3LQFOXGLQJ6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXVLQIOXHQ]DH
6WDSK\ORFRFFXVDXUHXVDQG/HJLRQHOODSQHXPRSKLOD2PDGDF\FOLQHKDVSRWHQWDFWLYLW\DJDLQVW
HDFKRIWKHVHSDWKRJHQVDQGLVQRWDIIHFWHGE\WHWUDF\FOLQHSHQLFLOOLQPDFUROLGHLQGXFLEOHRU
FRQVWLWXWLYHULERVRPHPHWK\ODWLRQRUHIIOX[RUTXLQRORQHUHVLVWDQFHLQ6WUHSWRFRFFXV
SQHXPRQLDHQRUSHQLFLOOLQRUPDFUROLGHUHVLVWDQFHLQ+DHPRSKLOXVLQIOXHQ]DH2PDGDF\FOLQH
KDVSRWHQWDFWLYLW\DJDLQVWPHWKLFLOOLQVXVFHSWLEOH6WDSK\ORFRFFXVDXUHXV066$DQGLVHTXDOO\


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

SRWHQWDJDLQVWPXOWLGUXJUHVLVWDQW056$,QDGGLWLRQRPDGDF\FOLQHKDVGHPRQVWUDWHGDFWLYLW\
DJDLQVW&KODP\GRSKLODSQHXPRQLDHXVLQJDPDFURSKDJHFXOWXUHV\VWHPDQGLVH[SHFWHGWREH
DFWLYHDJDLQVW0\FRSODVPDSQHXPRQLDHEDVHGRQPHFKDQLVPRIDFWLRQLQWUDFHOOXODUSHQHWUDWLRQ
DQGWKHDFWLYLW\RIWKHWHWUDF\FOLQHIDPLO\7KHLQYLWURDFWLYLW\RIRPDGDF\FOLQHZDVQRWDIIHFWHG
E\VHUXPRUOXQJVXUIDFWDQWDQLPSRUWDQWFKDUDFWHULVWLFWKDWLVFRQVLVWHQWZLWKSRWHQWLDOXWLOLW\LQ
LQIHFWLRQVLQYROYLQJWKHORZHUUHVSLUDWRU\WUDFW)XUWKHULWKDVEHHQVKRZQWREHHIIHFWLYHLQ
DQLPDOPRGHOVRIORZHUUHVSLUDWRU\WUDFWLQIHFWLRQVFDXVHGE\6WUHSWRFRFFXVSQHXPRQLDHDQG
+DHPRSKLOXVLQIOXHQ]DH,WLVH[SHFWHGWKDWRPDGDF\FOLQHZLOODFKLHYHOHYHOVLQWKHORZHU
UHVSLUDWRU\WUDFWFRPSDUDEOHWRUHODWHGWHWUDF\FOLQHVGR[\F\FOLQHDQGWLJHF\FOLQHZKLFKKDYH
EHHQXVHGWRVXFFHVVIXOO\WUHDWVXEMHFWVZLWK&$%3
2PDGDF\FOLQHKDVEHHQGHYHORSHGIRUERWKLQWUDYHQRXVLYDQGRUDOSRDGPLQLVWUDWLRQDQGKDV
EHHQZHOOFKDUDFWHUL]HGLQ3KDVHVWXGLHV,QDGGLWLRQRPDGDF\FOLQHKDVEHHQHYDOXDWHGLQD
UDQGRPL]HG3KDVHVDIHW\DQGHIILFDF\VWXG\RIVXEMHFWVZLWKFRPSOLFDWHGVNLQDQGVNLQ
VWUXFWXUHLQIHFWLRQVF666,DQGLQDVSRQVRUWHUPLQDWHGIRUDGPLQLVWUDWLYHUHDVRQVUDQGRPL]HG
3KDVHVWXG\WKDWHQUROOHGVXEMHFWVZLWKF666,:LWKLQWKHOLPLWVRIWKHVWXG\VL]HV
RPDGDF\FOLQHGHPRQVWUDWHGQXPHULFDOHIILFDF\VLPLODUWRDQHVWDEOLVKHGFRPSDUDWRUOLQH]ROLG
1RHOHWDO3DUDWHN
,QWKH3KDVHVWXGLHVVXEMHFWVZHUHH[SRVHGWRRPDGDF\FOLQHLYRUSRIRUPXODWLRQVDQG
ZHUHH[SRVHGWRSODFHER6LQJOHLYGRVHVXSWRPJDQGVLQJOHSRGRVHVXSWRPJKDYH
EHHQLQYHVWLJDWHG0XOWLSOHLYGRVHVRIPJRQFHGDLO\DQGPJRQFHGDLO\IRUXSWR
DQGFRQVHFXWLYHGD\VUHVSHFWLYHO\KDYHEHHQLQYHVWLJDWHG0XOWLSOHSRGRVHVRIPJRQFH
GDLO\DQGPJRQFHGDLO\IRUXSWRFRQVHFXWLYHGD\VKDYHDOVREHHQLQYHVWLJDWHG,QD
3KDVHVWXG\VXEMHFWVZLWKF666,ZHUHWUHDWHGZLWKRPDGDF\FOLQHQ RUOLQH]ROLG
Q IRUDPHDQRIDQGPD[LPXPRIGD\V,QWKHVSRQVRUWHUPLQDWHG3KDVHVWXG\
VXEMHFWVZLWKF666,ZHUHWUHDWHGZLWKRPDGDF\FOLQHQ RUOLQH]ROLGQ IRUD
PHDQRIDQGPD[LPXPRIGD\VIRURPDGDF\FOLQHDQGGD\VIRUOLQH]ROLG
,Q3KDVHVWXGLHVWKHUHZHUHQRGLVFRQWLQXDWLRQVGXHWRGUXJUHODWHGDGYHUVHHYHQWV$(VLQ
DQ\VXEMHFWZKRUHFHLYHGPXOWLSOHGRVHVRIRPDGDF\FOLQH$QLQFUHDVHGLQFLGHQFHRI
JDVWURLQWHVWLQDO*,$(VSDUWLFXODUO\QDXVHDZDVQRWHGLQHDUO\SRVWXGLHV
,QLYVWXGLHVLQKHDOWK\VXEMHFWVPRGHVWDQGUHYHUVLEOHDODQLQHDPLQRWUDQVIHUDVH$/7LQFUHDVHV
ZHUHVHHQPRVWQRWDEO\ZLWKLYGRVHVRIPJRUJUHDWHUîKLJKHUWKDQWKHWKHUDSHXWLFGRVH
RIPJLY7KHUHZHUHQRGLIIHUHQFHVLQ$/7FKDQJHVLQWKH3KDVHVWXG\FRPSDUHGWR
OLQH]ROLG7UDQVLHQWLQFUHDVHVLQKHDUWUDWHZHUHREVHUYHGIROORZLQJDGPLQLVWUDWLRQRIVLQJOHDQG
PXOWLSOHGRVHVRIRPDGDF\FOLQHZLWKDGRVHGHSHQGHQWPHDQLQFUHDVHRIXSWREHDWVSHU
PLQXWHESPFRPSDUHGWRSODFHERIRUWKHILUVWKRXUVDIWHUGRVLQJ7KHLQFUHDVHVLQKHDUWUDWH
ZHUHQRWUHSRUWHGDV$(VDQGQRWDVVRFLDWHGZLWKDQ\RWKHUFDUGLDFILQGLQJV7KHVHLQFUHDVHV
ZHUHREVHUYHGPRVWFRQVLVWHQWO\GXULQJWKHKRXUVLPPHGLDWHO\SRVWLQIXVLRQ%H\RQGKRXUV
DIWHUWKHVWDUWRIWKHLQIXVLRQKHDUWUDWHLQDOOVXEMHFWVLQFOXGLQJFRQWUROVZHUHFRPSDUDEOH$
OLVWLQJRIDOO3KDVH$(VLVSURYLGHGLQ$SSHQGL[,RIWKH,%3DUDWHN


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

,QWKH3KDVHVWXG\RPDGDF\FOLQHZDVZHOOWROHUDWHG7KHPRVWIUHTXHQWO\UHSRUWHG$(VZHUH
*,UHODWHGRFFXUULQJLQRIRPDGDF\FOLQHWUHDWHGDQGRI
OLQH]ROLGWUHDWHGVXEMHFWV1DXVHDDQGYRPLWLQJZHUHUHSRUWHGLQDQG
UHVSHFWLYHO\RIRPDGDF\FOLQHWUHDWHGVXEMHFWVSULPDULO\GXULQJSRWUHDWPHQWFRPSDUHGWR
DQGUHVSHFWLYHO\RIOLQH]ROLGWUHDWHGVXEMHFWV3UHPDWXUHGLVFRQWLQXDWLRQRI
WUHDWPHQWGXHWRDQ$(ZDVYHU\LQIUHTXHQWRFFXUULQJLQDQGRIRPDGDF\FOLQHDQG
OLQH]ROLGWUHDWHGVXEMHFWVUHVSHFWLYHO\
7KHUHZDVQRSDWWHUQRIDGYHUVHFKDQJHVLQODERUDWRU\VDIHW\SDUDPHWHUVDPRQJVXEMHFWVWUHDWHG
ZLWKRPDGDF\FOLQHRUOLQH]ROLGFKDQJHVLQRPDGDF\FOLQHWUHDWHGVXEMHFWVZHUHFRPSDUDEOHWR
WKRVHREVHUYHGZLWKOLQH]ROLG,QSDUWLFXODUWKHUHZDVQRFOLQLFDORUVWDWLVWLFDOGLIIHUHQFH
EHWZHHQWKHWUHDWPHQWJURXSVLQ$/7YDOXHVRULQRWKHUOLYHUIXQFWLRQWHVWV/)7V
$QLQFUHDVHLQPHDQKHDUWUDWHZDVREVHUYHGEXWWRDPXFKOHVVHUH[WHQWWKDQZKDWZDVREVHUYHG
LQ3KDVHVWXGLHV'XULQJWKHILUVWKRXUVIROORZLQJWKHVWDUWRIWKHILUVWLQIXVLRQRI
RPDGDF\FOLQHWKHUHZDVDPHDQLQFUHDVHLQKHDUWUDWHIURP%DVHOLQHRIESPIRURPDGDF\FOLQH
UDQJHIURPWRESPSHDNLQJDWKRXUVDVFRPSDUHGWRDVOLJKWGHFUHDVHRIESP
HIIHFWRQKHDUWUDWHIRUWKHOLQH]ROLGWUHDWPHQWDUPUDQJHIURPWRESPS 7KLV
HIIHFWZDVWUDQVLHQWDQGQR47SURORQJDWLRQZDVREVHUYHGFRQVLVWHQWZLWKWKHRPDGDF\FOLQH
WKRURXJKFRUUHFWHG47LQWHUYDO47FDQGKXPDQ(WKHUjJRJR5HODWHG*HQHK(5*VWXGLHV
7KUHHVXEMHFWVWUHDWHGZLWKRPDGDF\FOLQHKDG$(VRIWDFK\FDUGLDRWKHUVXEMHFWUHSRUWHG
SDOSLWDWLRQV$OORIWKHVH$(VZHUHPLOGLQLQWHQVLW\DOOZHUHDVVHVVHGDVHLWKHUXQUHODWHGRU
XQOLNHO\UHODWHGWRWHVWDUWLFOHDQGQRQHUHVXOWHGLQGLVFRQWLQXDWLRQRIVWXG\WUHDWPHQW7KUHHRI
WKHVH$(VRFFXUUHGGXULQJWKHILUVWZHHNRIWUHDWPHQW$(RFFXUUHGGD\VDIWHUFRPSOHWLQJ
WKHUDS\DQGZDVDVVRFLDWHGZLWKDQHZLQIHFWLRQDWDGLIIHUHQWVLWH
$3KDVHF666,VWXG\HQUROOHGVXEMHFWVSULRUWREHLQJGLVFRQWLQXHGGXHWRDFKDQJHLQWKH
)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$*XLGDQFHIRUWKHGHYHORSPHQWRIDQWLPLFURELDOVIRUDFXWH
EDFWHULDOVNLQDQGVNLQVWUXFWXUHLQIHFWLRQV$%666,7KHRYHUDOOLQFLGHQFHRIUHSRUWHG$(VLQ
WKLVVWXG\ZDVFRPSDUDEOHEHWZHHQWKHWUHDWPHQWJURXSV7KHPRVWFRPPRQO\UHSRUWHG$(V
IUHTXHQF\LQHLWKHUWUHDWPHQWJURXSZHUHQDXVHDRPDGDF\FOLQH
OLQH]ROLGKHDGDFKHRPDGDF\FOLQHOLQH]ROLGYRPLWLQJRPDGDF\FOLQH
OLQH]ROLGGLDUUKHDRPDGDF\FOLQHOLQH]ROLGDQGGL]]LQHVV
RPDGDF\FOLQHOLQH]ROLG&UHDWLQHSKRVSKRNLQDVH&.HOHYDWLRQZDVUHSRUWHGLQRI
RPDGDF\FOLQHWUHDWHGVXEMHFWVFRPSDUHGWRIRUOLQH]ROLG$(VDVVRFLDWHGZLWK$/7
LQFUHDVHVZHUHUHSRUWHGLQOLQH]ROLGWUHDWHGVXEMHFWVFRPSDUHGWRRPDGDF\FOLQH
VXEMHFW6L[OLQH]ROLGVXEMHFWVUHSRUWHGUDVKFRPSDUHGWRVXEMHFWRQ
RPDGDF\FOLQH)RXUVXEMHFWVH[SHULHQFHGVHULRXVDGYHUVHHYHQWV6$(VRPDGDF\FOLQHDQG
OLQH]ROLG7KHRPDGDF\FOLQH6$(VFRQVLVWHGRIVPDOOERZHOREVWUXFWLRQODUJHOHIWSOHXUDO
HIIXVLRQDQGZRUVHQLQJGHSUHVVLRQ7KHOLQH]ROLG6$(FRQVLVWHGRIZRUVHQLQJULJKWKDQG
FHOOXOLWLV
)RUIXOOGHWDLOVRIVDIHW\ILQGLQJVLQQRQFOLQLFDODQGFOLQLFDOVWXGLHVVHHWKH,%3DUDWHN


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

2PDGDF\FOLQHKDVGHPRQVWUDWHGDFWLYLW\DJDLQVWWKHPRVWFRPPRQ&$%3SDWKRJHQVLQFOXGLQJ
LVRODWHVUHVLVWDQWWRVWDQGDUGVRIFDUH7KLVVWXG\LVLQWHQGHGWRHYDOXDWHWKHVDIHW\DQGHIILFDF\
RILYDQGSRRPDGDF\FOLQHDVFRPSDUHGWRLYDQGSRPR[LIOR[DFLQLQWKHWUHDWPHQWRIDGXOWVZLWK
&$%3
 678'<2%-(&7,9(6
 3ULPDU\2EMHFWLYH
7KHSULPDU\REMHFWLYHRIWKLVVWXG\LVWRGHPRQVWUDWHWKDWRPDGDF\FOLQHPJLYRQFHHYHU\
KRXUVTKIRUGRVHVIROORZHGE\PJLYPJSRRQFHHYHU\KRXUVTKLV
QRQLQIHULRUWRPR[LIOR[DFLQPJLYSRTKLQWKHWUHDWPHQWRIDGXOWVZLWK&$%3
 6HFRQGDU\2EMHFWLYHV
x 7RHYDOXDWHWKHVDIHW\RIRPDGDF\FOLQHLQWKHWUHDWPHQWRIDGXOWVXEMHFWVZLWK&$%3LQWKH
6DIHW\SRSXODWLRQ
x 7RHYDOXDWHWKH&OLQLFDO5HVSRQVHDFFRUGLQJWRWKHLGHQWLILHGFDXVDWLYHSDWKRJHQ
x 7RHYDOXDWHWKHSKDUPDFRNLQHWLFV3.RIRPDGDF\FOLQHLQDGXOWVXEMHFWVZLWK&$%3

 678'<'(6,*1
 'HVFULSWLRQ
7KLVLVDUDQGRPL]HGGRXEOHEOLQGDFWLYHFRPSDUDWRUFRQWUROOHG3KDVHVWXG\FRPSDULQJ
RPDGDF\FOLQHDQGPR[LIOR[DFLQIRUWKHWUHDWPHQWRIDGXOWVZLWK&$%37KHQXPEHURIVXEMHFWV
LQ3QHXPRQLD2XWFRPHV5HVHDUFK7HDP32575LVN&ODVV,,ZLOOEHOLPLWHGWRQRPRUHWKDQ
RIUDQGRPL]HGVXEMHFWV6XEMHFWUDQGRPL]DWLRQZLOOEHVWUDWLILHGE\32575LVN&ODVV,,RU
,,,,9UHFHLSWRIDQDOORZHGDQWLEDFWHULDOWKHUDS\VHH$SSHQGL[LQWKHKRXUVSULRUWR
VWXG\WUHDWPHQWDQGJHRJUDSKLFUHJLRQDVGHILQHGLQWKH,QWHUDFWLYH9RLFH5HVSRQVH
6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP,[56VSHFLILFDWLRQVDQGVWDWLVWLFDODQDO\VLVSODQ
6$3VHH6HFWLRQ$OOVXEMHFWVDUHH[SHFWHGWRSUHVHQWZLWK&$%3VHYHUHHQRXJKWR
UHTXLUHDPLQLPXPRIDWOHDVWGD\VRILYWUHDWPHQW
7KHVWXG\ZLOOFRQVLVWRISKDVHV6FUHHQLQJ'RXEOH%OLQG7UHDWPHQWDQG)ROORZXS
)ROORZLQJWKHVLJQLQJRIDQ,&)DOO6FUHHQLQJHYDOXDWLRQVZLWKWKHH[FHSWLRQRIWKHEORRG
FXOWXUHVDPSOHFROOHFWLRQDQGUDGLRJUDSKLFFRQILUPDWLRQRISQHXPRQLDVKRXOGEHFRPSOHWHG
ZLWKLQWKHKRXUVSULRUWRUDQGRPL]DWLRQ7KHEORRGFXOWXUHVDPSOHFROOHFWLRQDQGUDGLRJUDSKLF
FRQILUPDWLRQRISQHXPRQLDVKRXOGEHFRPSOHWHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVW
DUWLFOH6XEMHFWVZKRPHHWLQFOXVLRQFULWHULDDQGGRQRWPHHWH[FOXVLRQFULWHULDZLOOEHUDQGRPO\
DVVLJQHGWRDWUHDWPHQWJURXSDQGVKRXOGUHFHLYHWKHLUILUVWGRVHRIWHVWDUWLFOHZLWKLQKRXUV
DIWHUUDQGRPL]DWLRQ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 5DWLRQDOHRI6WXG\'HVLJQ
7KHVWXG\ZDVGHVLJQHGLQDFFRUGDQFHZLWKWKH)'$)'$DQG(XURSHDQ0HGLFLQHV
$JHQF\(0$(0$(0$JXLGDQFHRQGHYHORSLQJDQWLPLFURELDOGUXJVIRUWKH
WUHDWPHQWRI&$%3LQDGGLWLRQWRWKHJXLGHOLQHVFUHDWHGMRLQWO\E\WKH,QIHFWLRXV'LVHDVHV
6RFLHW\RI$PHULFD,'6$DQGWKH$PHULFDQ7KRUDFLF6RFLHW\0DQGHOOHWDO
 5DWLRQDOHIRU&KRLFHRI&RPSDUDWRU
*LYHQWKHZLGHDFFHSWDQFHRIIOXRURTXLQRORQHPRQRWKHUDS\DVDVDIHILUVWOLQHRSWLRQIRU
WUHDWLQJVXEMHFWVZLWK&$%3WKHFRPSDUDWRUGUXJIRUWKLVVWXG\ZDVVHOHFWHGWREHPR[LIOR[DFLQ
PJLYTKZLWKWKHRSWLRQWRWUDQVLWLRQWRPJSRTK0R[LIOR[DFLQSURYLGHVD
EURDGVSHFWUXPRIDFWLYLW\DJDLQVWUHVSLUDWRU\SDWKRJHQVWKDWDUHFDXVDWLYHDJHQWVRI&$%3
LQFOXGLQJW\SLFDOHJ6WUHSWRFRFFXVSQHXPRQLDHDQGDW\SLFDOHJ/HJLRQHOOD&KODP\GRSKLOD
DQG0\FRSODVPDVSSSDWKRJHQVZLWKDVLPLODUVSHFWUXPRIDFWLYLW\WRWKDWRIRPDGDF\FOLQH
/LNHRPDGDF\FOLQHPR[LIOR[DFLQKDVERWKLYDQGSRIRUPXODWLRQRSWLRQVDQGLVDGPLQLVWHUHG
RQFHGDLO\
 $SSUR[LPDWH'XUDWLRQRI6XEMHFW3DUWLFLSDWLRQ
6XEMHFWVZLOOSDUWLFLSDWHLQWKHVWXG\IRUDSSUR[LPDWHO\GD\V)ROORZLQJ6FUHHQLQJHOLJLEOH
VXEMHFWVZLOOEHUDQGRPO\DVVLJQHGWRUHFHLYHWRGD\VRIWUHDWPHQWZLWKRPDGDF\FOLQHRU
PR[LIOR[DFLQ$IROORZXSRIILFHYLVLWZLOORFFXUWRGD\VDIWHUWKHODVWGRVHRIWHVWDUWLFOH
DQGDQRWKHUIROORZXSWHOHSKRQHFRQWDFWZLOORFFXUDSSUR[LPDWHO\WRGD\VDIWHUWKHILUVW
GRVHRIWHVWDUWLFOH
 $SSUR[LPDWH'XUDWLRQRI6WXG\
7KLVVWXG\ZLOOEHFOLQLFDOO\FRPSOHWHLQDSSUR[LPDWHO\PRQWKV
 $SSUR[LPDWH1XPEHURI6XEMHFWV
$SSUR[LPDWHO\VXEMHFWVZLOOSDUWLFLSDWHLQWKLVVWXG\DWXSWRDSSUR[LPDWHO\VLWHV
 6(/(&7,212)68%-(&76
(DFKVXEMHFWPXVWSDUWLFLSDWHLQWKHLQIRUPHGFRQVHQWSURFHVVDQGVLJQDQGGDWHDQLQVWLWXWLRQDO
UHYLHZERDUG,5%RULQGHSHQGHQWHWKLFVFRPPLWWHH,(&RUUHVHDUFKHWKLFVERDUG5(%
DSSURYHGLQIRUPHGFRQVHQWIRUP,&)EHIRUHDQ\SURFHGXUHVVSHFLILHGLQWKLVSURWRFRODUH
SHUIRUPHG
 ,QFOXVLRQ&ULWHULD
7REHHOLJLEOHIRUUDQGRPL]DWLRQLQWKLVVWXG\DVXEMHFWPXVWIXOILOO$//RIWKHIROORZLQJ
FULWHULD


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 :ULWWHQDQGVLJQHGLQIRUPHGFRQVHQWPXVWEHREWDLQHGEHIRUHDQ\SURWRFROVSHFLILF
DVVHVVPHQWLVSHUIRUPHG
 0DOHRUIHPDOHDJHG\HDUVRUROGHU
 +DVDWOHDVWRIWKHIROORZLQJV\PSWRPV
x &RXJK
x 3URGXFWLRQRISXUXOHQWVSXWXP
x '\VSQHDVKRUWQHVVRIEUHDWK
x 3OHXULWLFFKHVWSDLQ
 +DVDWOHDVW7:2RIWKHIROORZLQJDEQRUPDOYLWDOVLJQV
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUWHPSHUDWXUH!R&
>R)@RUR&>R)@
x +\SRWHQVLRQZLWKV\VWROLFEORRGSUHVVXUH6%3PP+J
x +HDUWUDWH!ESP
x 5HVSLUDWRU\UDWH55!EUHDWKVPLQXWH
 +DVDWOHDVWFOLQLFDOVLJQRUODERUDWRU\ILQGLQJDVVRFLDWHGZLWK&$%3
x +\SR[HPLDSDUWLDOSUHVVXUHRIDUWHULDOR[\JHQ>3D2@PP+JE\DUWHULDOEORRG
JDV>$%*@RUR[\JHQVDWXUDWLRQE\SXOVHR[LPHWU\
x 3K\VLFDOH[DPLQDWLRQILQGLQJVRISXOPRQDU\FRQVROLGDWLRQHJGXOOQHVVRQ
SHUFXVVLRQEURQFKLDOEUHDWKVRXQGVRUHJRSKRQ\
x $QHOHYDWHGWRWDOZKLWHEORRGFHOO:%&FRXQW!FHOOVPPRUOHXFRSHQLD
:%&FHOOVPPRUHOHYDWHGLPPDWXUHQHXWURSKLOV!EDQGIRUPV
VHHEDQGVFDOFXODWLRQLQ$SSHQGL[UHJDUGOHVVRIWRWDOSHULSKHUDO:%&FRXQW
 5DGLRJUDSKLFDOO\FRQILUPHGSQHXPRQLDLHQHZRUSURJUHVVLYHSXOPRQDU\LQILOWUDWHVRQ
FKHVW;UD\&;5RUFKHVWFRPSXWHGWRPRJUDSK\&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDO
SQHXPRQLDZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
 +DVGLVHDVHFDWHJRUL]HGDVEHLQJ32575LVN&ODVV,,,,,RU,9DW6FUHHQLQJVHH32575LVN
&ODVVFDOFXODWLRQLQ$SSHQGL[
 ,VH[SHFWHGWRUHTXLUHDPLQLPXPRIDWOHDVWGD\VRILYWKHUDS\IRUWKHLQLWLDOWUHDWPHQWRI
&$%3
 )HPDOHVPXVWKDYHDQHJDWLYHXULQHSUHJQDQF\WHVWDW6FUHHQLQJDQGDJUHHWRFRPSO\ZLWK
XVLQJDQDFFHSWDEOHPHWKRGRIELUWKFRQWURODVSHU\RXUORFDOUHTXLUHPHQWVHJDEVWLQHQFH
SRFRQWUDFHSWLYHLQWUDXWHULQHGHYLFH>,8'@EDUULHUFRQWUDFHSWLRQ>FRQGRP@WXEDOOLJDWLRQ
K\VWHUHFWRP\ELODWHUDORRSKRUHFWRP\SRVWPHQRSDXVDORUYDVHFWRPL]HGSDUWQHUIURP
6FUHHQLQJWKURXJKSRVWWKHUDS\HYDOXDWLRQ37(0DOHVPXVWDJUHHWRXVHDQDFFHSWDEOH
PHWKRGRIELUWKFRQWUROZLWKIHPDOHSDUWQHUVDQGPXVWQRWGRQDWHVSHUPIURP6FUHHQLQJ
WKURXJK37(

 ([FOXVLRQ&ULWHULD
 +DVUHFHLYHGRUPRUHGRVHVRIDSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQW
ZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHDVXEMHFWZLOOEHFRQVLGHUHGWRKDYH
UHFHLYHGDSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQWLIWKHSDWKRJHQLGHQWLILHGDV
FDXVLQJLQIHFWLRQLVVKRZQWREHVXVFHSWLEOHWRWKHDQWLEDFWHULDOJLYHQRULQWKHFLUFXPVWDQFH


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

ZKHUHDSDWKRJHQLVQRWLGHQWLILHGLIWKHDQWLEDFWHULDODJHQWLVDSSURYHGIRUWUHDWPHQWRI
SQHXPRQLDRULVNQRZQWRKDYHDFWLYLW\DJDLQVWDQ\RIWKHOHDGLQJFDXVHVRI&$%3>HJ
6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXVLQIOXHQ]DH0RUD[HOODFDWDUUKDOLV
6WDSK\ORFRFFXVDXUHXV/HJLRQHOODSQHXPRSKLOD@(;&(37,216XEMHFWVPD\EHHOLJLEOH
GHVSLWHSULRUDQWLEDFWHULDOWKHUDS\LIWKH\KDYHEHHQWUHDWHGZLWKDVLQJOHGRVHRIDVKRUW
DFWLQJDQWLEDFWHULDOLHDQDQWLEDFWHULDOZKRVHVWDQGDUGGRVLQJUHJLPHQLVPRUHIUHTXHQWWKDQ
RQFHSHUGD\VHHOLVWLQ$SSHQGL[
 ,VNQRZQRUVXVSHFWHGWRKDYH&$%3FDXVHGE\DSDWKRJHQWKDWPD\EHUHVLVWDQWWRHLWKHUWHVW
DUWLFOHHJ.OHEVLHOODSQHXPRQLDH3VHXGRPRQDVDHUXJLQRVD3QHXPRF\VWLVMLURYHFL
REOLJDWHDQDHUREHVP\FREDFWHULDIXQJDOSDWKRJHQV
 6XVSHFWHGRUFRQILUPHGHPS\HPDDSDUDSQHXPRQLFSOHXUDOHIIXVLRQLVQRWDQH[FOXVLRQ
FULWHULDRUOXQJDEVFHVV
 6XEMHFWVZLWKNQRZQRUVXVSHFWHGKRVSLWDODFTXLUHGSQHXPRQLD+$3RU
KHDOWKFDUHDVVRFLDWHGSQHXPRQLD+&$3+$3LVGHILQHGDVSQHXPRQLDZLWKRQVHWRI
FOLQLFDOVLJQVDQGV\PSWRPVKRXUVDIWHUKRVSLWDOL]DWLRQLQDQDFXWHLQVXEMHFWKHDOWKFDUH
IDFLOLW\+&$3LVGHILQHGDVSQHXPRQLDDFTXLUHGLQDORQJWHUPFDUHRU
VXEDFXWHLQWHUPHGLDWHKHDOWKFDUHIDFLOLW\HJQXUVLQJKRPHRULQDVXEMHFWDGPLWWHGZLWK
SQHXPRQLDIROORZLQJDUHFHQWKRVSLWDOL]DWLRQGLVFKDUJHGZLWKLQGD\VRIFXUUHQW
DGPLVVLRQDQGSUHYLRXVO\KRVSLWDOL]HGIRUKRXUV
 +DVNQRZQRULVFOLQLFDOO\VXVSHFWHGWRKDYHRUPRUHRIWKHIROORZLQJSULRUWR
UDQGRPL]DWLRQ
x $/7RUDVSDUWDWHDPLQRWUDQVIHUDVH$67î8SSHU/LPLWRI1RUPDO8/1
x WRWDOELOLUXELQ!î8/1RU
x HYLGHQFHRIHQGVWDJHOLYHUGLVHDVHHJDVFLWHVKHSDWLFHQFHSKDORSDWK\
 +DVDNQRZQKLVWRU\RIKDYLQJH[SHULHQFHGXQVWDEOHFDUGLDFGLVHDVHHJXQVWDEOHDQJLQD
P\RFDUGLDOLQIDUFWLRQDFXWHFRQJHVWLYHKHDUWIDLOXUHXQVWDEOHFDUGLDFDUUK\WKPLDHWF
ZLWKLQWKHPRQWKVSULRUWR6FUHHQLQJ
 +DVD47LQWHUYDOFRUUHFWHGIRUKHDUWUDWHXVLQJ)ULGHULFLD¶VIRUPXOD47F)!PVHF
PDOHVRU!PVHFIHPDOHVDUHNQRZQWRKDYHORQJ47V\QGURPHXVHGUXJVRI
SRWHQWLDOSURDUUK\WKPLFRU47SURORQJLQJHIIHFWDQGRUSUHVHQWZLWKWDFK\DUUK\WKPLD
 5HTXLUHVDQ\IRUPRIGLDO\VLVHJKHPRGLDO\VLVSHULWRQHDOGLDO\VLV
 +LVWRU\RUHYLGHQFHRIVHYHUHUHQDOGLVHDVHRUKDVDFDOFXODWHGFUHDWLQLQHFOHDUDQFH
&U&/P/PLQXWHXVLQJWKH&RFNFURIW*DXOWHTXDWLRQVHHHTXDWLRQLQ$SSHQGL[
(YLGHQFHRIVLJQLILFDQWLPPXQRORJLFGLVHDVHGHWHUPLQHGE\DQ\RIWKHIROORZLQJ
x &XUUHQWRUDQWLFLSDWHGQHXWURSHQLDGHILQHGDVQHXWURSKLOVPP
x .QRZQLQIHFWLRQZLWKKXPDQLPPXQRGHILFLHQF\YLUXV+,9DQGDFOXVWHURI
GLIIHUHQWLDWLRQ&'FRXQWWKDWLVXQNQRZQRUGRFXPHQWHGWREHFHOOVPP
ZLWKLQWKHODVW\HDURUDQ$FTXLUHG,PPXQH'HILFLHQF\6\QGURPH$,'6GHILQLQJ
LOOQHVV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x 7KHUHFHLSWRIFDQFHUFKHPRWKHUDS\UDGLRWKHUDS\RUSRWHQWQRQFRUWLFRVWHURLG
LPPXQRVXSSUHVVDQWGUXJVHJF\FORVSRULQHD]DWKLRSULQHWDFUROLPXVLPPXQH
PRGXODWLQJPRQRFORQDODQWLERG\WKHUDS\HWFZLWKLQWKHSDVWPRQWKVRUWKH
UHFHLSWRIFRUWLFRVWHURLGVHTXLYDOHQWWRRUJUHDWHUWKDQPJRISUHGQLVRQHSHUGD\RU
IRUPRUHWKDQGD\VLQWKHSULRUGD\VVHHHTXLYDOHQWFRUWLFRVWHURLGGRVHVLQ
$SSHQGL[
5HTXLUHVDFXWHSKDUPDFRORJLFLQWHUYHQWLRQWRVWDELOL]HEORRGSUHVVXUH%3DQGRUDGHTXDWH
WLVVXHSHUIXVLRQ25KDVHYLGHQFHRIVHSWLFVKRFNGHILQHGE\$//RIWKHIROORZLQJ
x )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUWHPSHUDWXUH!&
>)@RU&>)@
x +HDUWUDWH!EHDWVPLQXWH
x 55!EUHDWKVPLQXWH
x :%&!FHOOVPPRUFHOOVPPRU!LPPDWXUH>EDQG@IRUPV
VHHEDQGVFDOFXODWLRQLQ$SSHQGL[UHJDUGOHVVRIWKHWRWDOSHULSKHUDO:%&FRXQW
x +\SRWHQVLRQZLWK6%3PP+JGHVSLWHDQLYIOXLGFKDOOHQJHRIFFNJRYHU
DPLQXWHSHULRG
x 3HUIXVLRQDEQRUPDOLWLHVWKDWPD\LQFOXGHEXWDUHQRWOLPLWHGWRODFWLFDFLGRVLVEORRG
ODFWDWHFRQFHQWUDWLRQPPRO/ROLJXULDRUDFXWHDOWHUDWLRQLQPHQWDOVWDWXV
.QRZQRUVXVSHFWHGSULPDU\RUPHWDVWDWLFQHRSODVWLFOXQJGLVHDVHDVSLUDWLRQSQHXPRQLD
DFWLYHWXEHUFXORVLVF\VWLFILEURVLVEURQFKLHFWDVLVEURQFKLDOREVWUXFWLRQHJSRVWREVWUXFWLYH
SQHXPRQLDFKURQLFQHXURORJLFDOGLVRUGHUSUHYHQWLQJFOHDUDQFHRISXOPRQDU\VHFUHWLRQVRU
VHYHUHFKURQLFREVWUXFWLYHSXOPRQDU\GLVHDVH&23'
3UHJQDQWRUQXUVLQJEUHDVWIHHGLQJZRPHQ
+DVDKLVWRU\RIK\SHUVHQVLWLYLW\RUDOOHUJLFUHDFWLRQHJDQDSK\OD[LVXUWLFDULDRWKHU
VLJQLILFDQWUHDFWLRQWRDQ\WHWUDF\FOLQHHJPLQRF\FOLQHGR[\F\FOLQHRUWLJHF\FOLQHRUWR
DQ\IOXRURTXLQRORQHDQWLELRWLF
+DVDKLVWRU\RISVHXGRWXPRUFHUHEULRUSULRUZLWKLQZHHNVSULRUWR6FUHHQLQJRUSODQQHG
FRQFRPLWDQWXVHRILVRWUHWLQRLQ
+DVDKLVWRU\RIV\VWHPLFOXSXVHU\WKHPDWRVXVRUOXSXVOLNHV\QGURPH
+DVFXUUHQWHYLGHQFHRISDQFUHDWLWLV
+DVDKLVWRU\RIDFHQWUDOQHUYRXVV\VWHPGLVRUGHUWKDWPD\SUHGLVSRVHWRVHL]XUHVRUORZHU
WKHVHL]XUHWKUHVKROG
8VHRIRWKHULQYHVWLJDWLRQDOGUXJVZLWKLQKDOIOLYHVRUGD\VSULRUWR6FUHHQLQJ
ZKLFKHYHULVORQJHU
+DVSUHYLRXVO\EHHQWUHDWHGZLWKRPDGDF\FOLQHRUSUHYLRXVO\HQUROOHGLQWKLVVWXG\
$Q\SODQQHGPHGLFDOLQWHUYHQWLRQWKDWPLJKWLQWHUIHUHZLWKWKHDELOLW\WRFRPSO\ZLWKWKH
VWXG\UHTXLUHPHQWV
+DVDOLIHH[SHFWDQF\RIOHVVWKDQRUHTXDOWRPRQWKVRUDQ\FRQFRPLWDQWFRQGLWLRQWKDWLQ
WKHRSLQLRQRIWKHLQYHVWLJDWRULVOLNHO\WRLQWHUIHUHZLWKHYDOXDWLRQRIWKHUHVSRQVHRIWKH
LQIHFWLRQXQGHUVWXG\GHWHUPLQDWLRQRI$(VRUFRPSOHWLRQRIWKHH[SHFWHGFRXUVHRI
WUHDWPHQW



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 6FUHHQ)DLOXUHV
6XEMHFWVZKRVLJQWKH,&)EXWZLWKGUDZRUDUHZLWKGUDZQIURPWKHVWXG\EHIRUHUDQGRP
DVVLJQPHQWWRDGRXEOHEOLQGWUHDWPHQWDUHGHILQHGDVVFUHHQIDLOXUHV$OOVFUHHQIDLOXUHVVKRXOG
EHUHFRUGHGRQWKHVXEMHFWPDVWHUOLVW/LPLWHGLQIRUPDWLRQLQFOXGLQJUHDVRQIRUVFUHHQIDLOXUH
ZLOOEHUHFRUGHGRQWKHHOHFWURQLFFDVHUHSRUWIRUPH&5)RU,[56V\VWHPIRUVFUHHQIDLOXUHV
 35,25$1'&21&20,7$1775($70(17
7UHDWPHQWVWKDWKDYHEHHQDGPLQLVWHUHGZLWKLQWKHGD\VSULRUWRWKHGDWHRILQIRUPHGFRQVHQW
RUGXULQJWKH6FUHHQLQJSHULRGZLOOEHUHFRUGHGLQWKHH&5)7KHLQYHVWLJDWRULVWRLQVWUXFWWKH
VXEMHFWWRQRWLI\WKHVWXG\VLWHDERXWDQ\QHZPHGLFDWLRQVKHVKHWDNHVDIWHUWKHVWDUWRIWKHWHVW
DUWLFOH$OOPHGLFDWLRQVDQGVLJQLILFDQWQRQGUXJWKHUDSLHVLQFOXGLQJSK\VLFDOWKHUDS\DQGEORRG
WUDQVIXVLRQVDGPLQLVWHUHGDIWHUWKHVXEMHFWVWDUWVWUHDWPHQWZLWKWHVWDUWLFOHPXVWEHUHFRUGHGDV
FRQFRPLWDQWPHGLFDWLRQVVLJQLILFDQWQRQGUXJWKHUDSLHVLQWKHH&5)
 3HUPLWWHG7UHDWPHQW
$Q\FRQFRPLWDQWWUHDWPHQWWKDWLVQRWSURKLELWHGH[SOLFLWO\LQWKHSURWRFROLVSHUPLWWHG$VLQJOH
GRVHRIDVKRUWDFWLQJSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDODJHQWVHHOLVWLQ$SSHQGL[
DGPLQLVWHUHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHZLOOEHDOORZHGIRURU
OHVVRIUDQGRPL]HGVXEMHFWV6XEMHFWVUHTXLULQJDGGLWLRQDORUDOWHUQDWLYHDQWLEDFWHULDOWKHUDS\IRU
&$%3ZLOOEHMXGJHGDV&OLQLFDO)DLOXUHVDQGWHVWDUWLFOHZLOOEHGLVFRQWLQXHG)XUWKHUWUHDWPHQW
IRUWKHLULQIHFWLRQLVDWWKHGLVFUHWLRQRIWKHLQYHVWLJDWRURUWKHVXEMHFW¶VKHDOWKFDUHSURYLGHUDQG
ZLOOEHFRQVLGHUHGDVDFRQFRPLWDQWPHGLFDWLRQ
 3URKLELWHG7UHDWPHQW
7KHIROORZLQJWUHDWPHQWVDUHSURKLELWHG
$OOLQYHVWLJDWLRQDOPHGLFDWLRQVRUGHYLFHVXVHGGXULQJWKHGD\VSULRUWR6FUHHQLQJDUH
SURKLELWHG/RQJDFWLQJV\VWHPLFDQWLEDFWHULDODJHQWVSRWHQWLDOO\HIIHFWLYHIRU&$%3DUH
SURKLELWHGIRUKRXUVSULRUWRUDQGRPL]DWLRQWKURXJK(QGRI7UHDWPHQW(27H[FHSWLQFDVHV
RIFOLQLFDOIDLOXUHVHHOLVWLQ$SSHQGL[
'XULQJSRWUHDWPHQWVXEMHFWVZLOOEHLQVWUXFWHGWRDYRLGWDNLQJDQWDFLGVDQGPXOWLYLWDPLQV
FRQWDLQLQJPXOWLYDOHQWFDWLRQVHJDOXPLQXPPDJQHVLXPFDOFLXPELVPXWKLURQRU]LQF
 3URKLELWHG&RQFRPLWDQW0HGLFDWLRQVWKDWPD\,QWHUDFWZLWK0R[LIOR[DFLQ
8VHRISURDUUK\WKPLFRU47SURORQJLQJPHGLFDWLRQVLVSURKLELWHGWKURXJKWKH)LQDO)ROORZXS
DVVHVVPHQW)RURWKHUZDUQLQJVSUHFDXWLRQVDQGGUXJLQWHUDFWLRQVIRUPR[LIOR[DFLQSOHDVHVHH
WKHPRVWFXUUHQWYHUVLRQRIWKHPR[LIOR[DFLQIXOOSUHVFULELQJLQIRUPDWLRQSURYLGHGXQGHU
VHSDUDWHFRYHU


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 352&('85(6
:ULWWHQVLJQHGDQGGDWHGLQIRUPHGFRQVHQWZLOOEHREWDLQHGEHIRUHDQ\VWXG\UHODWHGSURFHGXUHV
KDYHEHHQSHUIRUPHG8SRQVLJQLQJWKHLQIRUPHGFRQVHQWWKHVXEMHFWVKRXOGWKHQEHDVVLJQHGD
VWXG\VXEMHFWQXPEHU$(VPXVWEHUHFRUGHGIURPWKHWLPHWKH,&)LVVLJQHG6XEMHFWVZKR
KDYHEHHQSUHVFUHHQHGDQGGRQRWVLJQDQ,&)ZLOOQRWEHDVVLJQHGDVXEMHFWQXPEHU7KH
LQYHVWLJDWRUZLOOPDLQWDLQDVXEMHFWPDVWHUOLVWWRGRFXPHQWHYHU\VXEMHFWZKRKDVVLJQHGDQ,&)
$FRS\RIWKLVOLVWVKRXOGEHUHWDLQHGLQWKHLQYHVWLJDWRU¶VVWXG\ILOHV
 9LVLW6FKHGXOHDQG$VVHVVPHQWV
5HIHUWR678'<)/2:&+$57IRUWKHVWXG\SURFHGXUHVDQGWKHLUWLPHSRLQWV7KHUHDUH
SURWRFROGHILQHGSKDVHVRIWKHVWXG\6FUHHQLQJ'RXEOH%OLQG7UHDWPHQWDQG)ROORZXS7KH
VWXG\ZLOOKDYHWKHIROORZLQJSURWRFROGHILQHGHYDOXDWLRQV
x 9LVLWVZLOOEHFRQGXFWHGGDLO\RQVWXG\'D\VWKURXJK7KH'D\YLVLWLVRSWLRQDOIRU
VXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPDKRVSLWDO
VHWWLQJ$'D\YLVLWVKRXOGEHFRQGXFWHGIRUVXEMHFWVZLWKWUHDWPHQWH[WHQGLQJEH\RQG
GD\VXQOHVVWKLVYLVLWFRLQFLGHVZLWKWKH(QGRI7UHDWPHQW(27YLVLW
x (QGRI7UHDWPHQWWREHSHUIRUPHGRQWKHFDOHQGDUGD\RIRUZLWKLQGD\VIROORZLQJWKHODVW
GRVHRIDQ\WHVWDUWLFOH,IDVXEMHFWZLWKGUDZVSUHPDWXUHO\RUWHUPLQDWHVSDUWLFLSDWLRQLQWKH
VWXG\EHIRUHFRPSOHWLRQWKH(27YLVLWVKRXOGEHFRQGXFWHG
x 37(WREHSHUIRUPHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\
x )LQDO)ROORZXSDVVHVVPHQW6WXG\'D\WRDIWHUVWDUWRIILUVWLQIXVLRQRIWHVWDUWLFOH

6XEMHFWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWSUHPDWXUHO\VKRXOGKDYHWKH(27YLVLWDQGWKH
SURFHGXUHVOLVWHGIRUWKDWYLVLWLQWKH678'<)/2:&+$57D37(YLVLWDQGD)LQDO)ROORZXS
DVVHVVPHQWLISRVVLEOH7KHVLWHVKRXOGDOVRFROOHFWVXEMHFWVDIHW\LQIRUPDWLRQWKURXJKWKH)LQDO
)ROORZXSDVVHVVPHQW
 6FUHHQLQJ3KDVH
'XHWRWKHQDWXUHRIWKHGLVHDVHXQGHUVWXG\WKH6FUHHQLQJSHULRGVKRXOGEHFRPSOHWHGZLWKLQ
GD\KRXUSHULRG7KH6FUHHQLQJZLOOEHXVHGWRHVWDEOLVKVXEMHFWHOLJLELOLW\DQG%DVHOLQH
FKDUDFWHULVWLFVIRUHDFKVXEMHFW6XEMHFWVDUHHOLJLEOHIRU6FUHHQLQJLIWKH\SUHVHQWZLWK&$%3
)ROORZLQJWKHVLJQLQJRIDQ,&)VLWHSHUVRQQHOZLOOFROOHFWWKHIROORZLQJLQIRUPDWLRQ
x 'HPRJUDSKLFV
x 0HGLFDOVXUJLFDOKLVWRU\DQGFXUUHQWPHGLFDOFRQGLWLRQV
x 3K\VLFDOH[DPLQDWLRQ
x 9LWDOVLJQV
x 5HYLHZRILQFOXVLRQH[FOXVLRQFULWHULD


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x /RFDODQG&HQWUDO/DERUDWRU\WHVWVKHPDWRORJ\FKHPLVWU\XULQHWHVWVSUHJQDQF\WHVWIRU
ZRPHQRQO\
x OHDGHOHFWURFDUGLRJUDP(&*
x &RQFRPLWDQWPHGLFDWLRQVSDVWGD\V
x $(VDQG6$(VVLQFHWKHVLJQLQJRIWKH,&)
x $VVHVVPHQWRI&$%3V\PSWRPVHYHULW\FRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQ
G\VSQHD6HH$SSHQGL[IRUV\PSWRPVHYHULW\VFDOH
x 5DGLRORJLF&;5RU&7VFDQHYDOXDWLRQRISQHXPRQLD
x $%*RUSXOVHR[LPHWU\DQG32575LVN&ODVV$VVHVVPHQW
x 0LFURELRORJLFDODVVHVVPHQWVEORRGFXOWXUHUHVSLUDWRU\FXOWXUH	*UDPVWDLQORFDOODEXULQH
DQWLJHQWHVWVDQGEORRGIRU&HQWUDO/DEWHVWLQJ


6XEMHFW'HPRJUDSKLFV2WKHU%DVHOLQH&KDUDFWHULVWLFV
6XEMHFWGHPRJUDSKLFDQG%DVHOLQHFKDUDFWHULVWLFGDWDWREHFROOHFWHGRQDOOVXEMHFWVLQFOXGHGDWH
RIELUWKJHQGHUUDFHHWKQLFLW\DQGFKLOGEHDULQJSRWHQWLDO0HGLFDOKLVWRU\FXUUHQWPHGLFDO
FRQGLWLRQGDWDLQFOXGHVGDWDXQWLOWKHVLJQLQJRILQIRUPHGFRQVHQW:KHQHYHUSRVVLEOH
GLDJQRVHVDUHWREHUHFRUGHG
7KHLQYHVWLJDWRUZLOOSHUIRUPDFRPSUHKHQVLYHKLVWRU\DQGSK\VLFDOH[DPLQDWLRQDWWKH6FUHHQLQJ
HYDOXDWLRQZLWKSDUWLFXODUDWWHQWLRQWRLWHPVLQGLFDWHGEHORZ
 0HGLFDO+LVWRU\5HODWLQJWRWKH,QIHFWLRQ8QGHU6WXG\

x 3UHGLVSRVLQJIDFWRUVWKDWPD\DIIHFWOXQJIXQFWLRQHJSULRUOXQJLQIHFWLRQPLOGWRPRGHUDWH
&23'V\PSWRPDWLFDVWKPDZLWKZKHH]LQJKLVWRU\RIVPRNLQJFKURQLFFRXJKZLWKDQG
ZLWKRXWVSXWXPSURGXFWLRQHWF
x +LVWRU\RISQHXPRFRFFDOYDFFLQDWLRQHJ3QHXPRYD[3UHYQDU
x $OOV\VWHPLFDQWLPLFURELDOVIURPRQVHWRIWKHLQIHFWLRQZLOOEHUHFRUGHGXQGHUFRQFRPLWDQW
PHGLFDWLRQV


3K\VLFDO([DPLQDWLRQ
$W6FUHHQLQJWKHSK\VLFDOH[DPLQDWLRQZLOOLQFOXGHWKHH[DPLQDWLRQRIJHQHUDODSSHDUDQFHVNLQ
QHFNLQFOXGLQJWK\URLGH\HVHDUVQRVHWKURDWOXQJVKHDUWDEGRPHQEDFNO\PSKQRGHV
H[WUHPLWLHVYDVFXODUDQGQHXURORJLFDO,ILQGLFDWHGEDVHGRQPHGLFDOKLVWRU\DQGRUV\PSWRPV
UHFWDOH[WHUQDOJHQLWDOLDEUHDVWDQGSHOYLFH[DPVPD\EHSHUIRUPHG+HLJKWDQGERG\ZHLJKW
ZLOOEHPHDVXUHG


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

,QIRUPDWLRQIRUDOOSK\VLFDOH[DPLQDWLRQVPXVWEHLQFOXGHGLQWKHVRXUFHGRFXPHQWDWLRQDWWKH
VWXG\VLWH6LJQLILFDQWILQGLQJVWKDWDUHSUHVHQWSULRUWRWKHVWDUWRIWHVWDUWLFOHPXVWEHLQFOXGHG
LQWKHVXEMHFW¶VH&5)

$VVHVVPHQWRI&$%36\PSWRP6HYHULW\
7KHLQYHVWLJDWRUZLOOVSHFLILFDOO\DVVHVVWKHSUHVHQFHDQGVHYHULW\OHYHORIWKHVXEMHFW¶V
V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDRQDSRLQWVFDOH
DEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWVHH$SSHQGL[
DQGHQWHUWKHV\PSWRPVHYHULW\OHYHOLQWRWKHH&5)6XEMHFWVPXVWKDYHDWOHDVWRIWKHVH
V\PSWRPVRI&$%3WREHHOLJLEOHIRUUDQGRPL]DWLRQLQWKHVWXG\VHH6HFWLRQ

5DGLRORJLF(YDOXDWLRQRI3QHXPRQLD
$&;5RU&7VFDQZLOOEHREWDLQHGIRUDOOVXEMHFWVDW6FUHHQLQJZLWKLQKRXUVSULRUWRWKH
ILUVWGRVHRIWHVWDUWLFOH7KHVHVWXGLHVPD\EHREWDLQHGDVSDUWRIURXWLQHQRQVWXG\HYDOXDWLRQ
RIDVXEMHFWSUHVHQWLQJZLWKVLJQVDQGV\PSWRPVRI&$%3DQGWKHUHIRUHPD\EHSHUIRUPHGLQ
VRPHFLUFXPVWDQFHVEHIRUHLQIRUPHGFRQVHQWLVREWDLQHGIRUSDUWLFLSDWLRQLQWKLVVWXG\,ID&;5
RU&7VFDQLVREWDLQHGGXULQJWKHFRXUVHRIWKHUDS\RUGXULQJWKHSHULRGXSWRWKH)LQDO
)ROORZXSDVVHVVPHQWWKHUHVXOWVRIWKHVWXG\ZLOOEHFROOHFWHG5DGLRORJLFHYDOXDWLRQVZLOOEH
SHUIRUPHGORFDOO\DQGLQWHUSUHWHGE\DSSURSULDWHO\TXDOLILHGSHUVRQQHOZKRDUHFHUWLILHGRU
OLFHQVHGWRLQWHUSUHWFKHVWUDGLRJUDSKVDFFRUGLQJWRDSSOLFDEOHUHJLRQDOUHTXLUHPHQWVUHYLHZHG
E\WKHLQYHVWLJDWRURUTXDOLILHGSHUVRQQHODQGWKHFRQFOXVLRQVRIWKLVUHYLHZZLOOEHWKHEDVLVIRU
VXEMHFWLQFOXVLRQ7KHUHYLHZUHSRUWVKRXOGEHLQFOXGHGLQWKHVRXUFHGRFXPHQWV

32575LVN&ODVV
$OOVXEMHFWVZKRDUHEHLQJVFUHHQHGIRUWKHVWXG\ZLOOKDYHWKHLU32575LVN&ODVVDVVHVVHGDW
WKH6FUHHQLQJHYDOXDWLRQRQO\VHH$SSHQGL[$VSDUWRIWKH,QFOXVLRQ&ULWHULDWRWKLVVWXG\
DOOVXEMHFWVPXVWKDYHGLVHDVHFKDUDFWHUL]HGDV32575LVN&ODVVRI,,,,,RU,9DW
UDQGRPL]DWLRQ

8ULQH7HVWV
$XULQHGLSVWLFNWHVWZLOOEHSHUIRUPHGORFDOO\DW6FUHHQLQJ8ULQHGLSVWLFNUHVXOWVZLOOEH
UHFRUGHGRQWKHH&5)$XULQHSUHJQDQF\WHVWZLOOEHSHUIRUPHGORFDWOO\GXULQJ6FUHHQLQJIRU
DOOZRPHQDQGWKHUHVXOWVZLOOEHUHFRUGHGRQWKHH&5)8ULQHZLOODOVREHWHVWHGORFDOO\DW
6FUHHQLQJIRUWKHSUHVHQFHRI/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDHDQWLJHQV
DQGWKHUHVXOWVZLOOEHUHFRUGHGRQWKHH&5)
 'RXEOHEOLQG7UHDWPHQW3KDVH

$VVHVVPHQWV:KLOHRQ7HVW$UWLFOH
7KHGRXEOHEOLQGWUHDWPHQWSHULRGLVXSWRGD\VLQGXUDWLRQ6XEMHFWVZKRPHWLQFOXVLRQ
FULWHULDDQGGLGQRWPHHWH[FOXVLRQFULWHULDZLOOEHUDQGRPO\DVVLJQHGWRDWUHDWPHQWJURXSDQG
VKRXOGUHFHLYHWKHLUILUVWGRVHRIWHVWDUWLFOHZLWKLQKRXUVDIWHUUDQGRPL]DWLRQ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7KHIROORZLQJDVVHVVPHQWVVHH678'<)/2:&+$57ZLOOEHGRQH
x 9LWDOVLJQV
x 3K\VLFDOH[DPLQDWLRQVZRUVHQLQJRIREVHUYDWLRQVVLQFHWKH6FUHHQLQJH[DPLQDWLRQZLOOEH
UHFRUGHGDV$(V
x $(VDQG6$(V
x &RQFRPLWDQWWUHDWPHQWV
x &$%3V\PSWRPVHYHULW\VFDOHSHUIRUPHGE\WKHLQYHVWLJDWRU$SSHQGL[
x 0LFURELRORJLFDODVVHVVPHQWV
x OHDG(&*VKRXOGEHSHUIRUPHGMXVWSULRU>ZLWKLQPLQXWHV@DQGPLQXWHVDIWHUWKH
VWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWDQGWKLUGGRVHVRIWHVWDUWLFOHDWWKH'D\YLVLWDWWKH
(27YLVLWDQGDVRWKHUZLVHFOLQLFDOO\LQGLFDWHG
x %ORRGIRU&HQWUDO/DERUDWRU\DVVHVVPHQWVKHPDWRORJ\FKHPLVWU\SUHJQDQF\IRUZRPHQ
RQO\
x 7HVWDUWLFOHDGPLQLVWUDWLRQDQGDFFRXQWDELOLW\
x $VVHVVPHQWIRUSRVZLWFKRUQHHGWRFRQWLQXHWKHUDS\
x ,QYHVWLJDWRU¶VDVVHVVPHQWRIFOLQLFDOUHVSRQVH
 ,QWUDYHQRXV7UHDWPHQW3KDVH7HVW$UWLFOH

7KHLYWUHDWPHQWSKDVHPLQLPXPRIGD\VGRVHVZLOOIROORZDGRXEOHGXPP\GHVLJQZLWK
SODFHERLQIXVLRQVPDWFKHGWRDFWLYHRPDGDF\FOLQHDQGPR[LIOR[DFLQLQIXVLRQVDVVKRZQLQ
7DEOH,QIXVLRQVRIRPDGDF\FOLQHDQGPDWFKHGSODFHERZLOOEHDGPLQLVWHUHGFRQWLQXRXVO\RYHU
DSSUR[LPDWHO\PLQXWHV'XULQJWKHILUVWKRXUVRILYWUHDWPHQWVXEMHFWVRQWKH
PR[LIOR[DFLQWUHDWPHQWDUPZLOOUHFHLYHDSODFHERLQIXVLRQWRPDWFKWKHW KLQIXVLRQLQWKH
RPDGDF\FOLQHDUPDVVKRZQLQ7DEOH
,QIXVLRQVRIPR[LIOR[DFLQDQGPDWFKHGSODFHERZLOOEHDGPLQLVWHUHGFRQWLQXRXVO\RYHU
DSSUR[LPDWHO\PLQXWHV$OOLQIXVLRQVWDUWDQGVWRSWLPHVDUHWREHUHFRUGHGLQVRXUFH
GRFXPHQWVDQGRQWKHH&5)%HFDXVHWKHFRORURIWKHWHVWDUWLFOHDQGSODFHERLQIXVLRQVDUH
GLIIHUHQWDOOLQIXVLRQEDJVDQGLYWXELQJZLOOEHFRYHUHGZLWKPDWHULDOVSURYLGHGE\WKHVSRQVRU
DVGHVFULEHGLQWKH3KDUPDF\0DQXDOVRWKDWVXEMHFWVDQGEOLQGHGVWXG\SHUVRQQHOZLOOQRW
NQRZWKHLGHQWLW\RIWKHWHVWDUWLFOHEHLQJDGPLQLVWHUHG6XEMHFWVLQHDFKVWXG\DUPZLOOUHFHLYH
WKHVDPHLQIXVLRQYROXPHVZLWKWKHVDPHEOLQGHGDGPLQLVWUDWLRQLQVWUXFWLRQV$OOLYLQIXVLRQV
ZLOOEHDGPLQLVWHUHGE\TXDOLILHGEOLQGHGSHUVRQQHO,IJUDYLW\DGPLQLVWUDWLRQLVQRWWKHVWDQGDUG
RIFDUHWKHQDQLQIXVLRQSXPSPD\EHXVHG,IDQLQIXVLRQSXPSLVXVHGWKHQDSRWHQWLDOO\
XQEOLQGHGDGPLQLVWUDWRUZLOOEHUHTXLUHGVHH6HFWLRQ$OOVXEMHFWVVKRXOGUHPDLQLQD
KRVSLWDOVHWWLQJZKLOHRQLYWHVWDUWLFOHIRUDPLQLPXPRIGD\VGRVHV7KHUHDIWHUVXEMHFWV
VKRXOGQRWEHGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRFRPSOHWLRQRISURWRFROVSHFLILHGDVVHVVPHQWV
H[FHSWLQFLUFXPVWDQFHVZKHUHWKH3ULQFLSDO6LWH,QYHVWLJDWRUKDVFOHDUO\LGHQWLILHGWKDWVXIILFLHQW
UHVRXUFHVDQGSURFHVVHVDUHDYDLODEOHWRFRPSOHWHDOOVWXG\SURFHGXUHVDVGHILQHGLQWKHSURWRFRO


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

DQGWKHVSRQVRUKDVUHYLHZHGDQGDSSURYHGWKHSURFHVVIRURXWSDWLHQWLYWHVWDUWLFOH
DGPLQLVWUDWLRQ
7DEOH
7UHDWPHQW5HJLPHQVIRU,97HVW$UWLFOH
,QIXVLRQ5HJLPHQD
2PDGDF\FOLQH$UPEF
0R[LIOR[DFLQ$UPEF
W KG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W K
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
W KG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W KG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W KHWKHQTKG
RPDGDF\FOLQHPJLQP/16
P/16SODFHER
P/16SODFHER
PR[LIOR[DFLQPJLQP/VDOLQH
W WLPH16 1RUPDOVDOLQHVRGLXPFKORULGHIRULQMHFWLRQTK HYHU\KRXUVTK HYHU\KRXUV
D
7KHVWDUWWLPHRIWKHILUVWLQIXVLRQLVGHVLJQDWHGWLPHW KIROORZHGE\TKGRVHVW KW K
DQGWKHQDOOVXEVHTXHQWGRVHVDUHTKIRUDPLQLPXPRIGD\VGRVHVRILYWUHDWPHQWWKURXJKW K
6HH6HFWLRQIRUDOORZHGDGMXVWPHQWVLQLYGRVLQJVFKHGXOHV
E
$OOP/LQIXVLRQVRIRPDGDF\FOLQHRUP/16SODFHERDUHDGPLQLVWHUHGFRQWLQXRXVO\RYHUPLQXWHV
DWOHDVWPLQXWHVDQGQRWPRUHWKDQPLQXWHV
F
$OOP/LQIXVLRQVRIPR[LIOR[DFLQRUP/16SODFHERDUHDGPLQLVWHUHGFRQWLQXRXVO\RYHU
DSSUR[LPDWHO\PLQXWHV
G
$WWKHVHWLPHSRLQWVDP/LQIXVLRQZLOOEHDGPLQLVWHUHGILUVWIROORZHGE\DP/LQIXVLRQ,WLV
LPSRUWDQWWRIROORZWKLVVHTXHQFHRIDGPLQLVWUDWLRQ
H
%HJLQQLQJZLWKWKHILIWKGRVHW KEDVHGRQWKHLQYHVWLJDWRUGHFLVLRQWKHWKHUDS\FRXOGEHLYRUVZLWFKWR
SRWKHUDS\1RWHWKHILUVWSRGRVHVKRXOGEHDGPLQLVWHUHGLQWKHPRUQLQJKRXUVDIWHUWKHODVWLYGRVH
WKHUHIRUHWKHILUVWSRGRVHPD\RFFXUDVHDUO\DVW KVHH6HFWLRQ

0DQDJHPHQWZKLOHRQ,97HVW$UWLFOH
:KLOHWKHVXEMHFWLVUHFHLYLQJLYWKHUDS\WKHLQYHVWLJDWRUZLOODVVHVVWKHVXEMHFWGDLO\DQGFKRRVH
21(RIWKHIROORZLQJEDVHGRQWKHRYHUDOOFOLQLFDODVVHVVPHQWRIWKHVXEMHFW
x FRQWLQXHLYWHVWDUWLFOH
x VZLWFKWRSRWHVWDUWLFOHDIWHUDPLQLPXPRIGD\V>GRVHV@RILYWKHUDS\1RWHWKHILUVWSR
GRVHVKRXOGEHDGPLQLVWHUHGLQWKHPRUQLQJKDIWHUWKHODVWLYGRVHWKHUHIRUHWKHILUVW
SRGRVHPD\RFFXUDVHDUO\DVW KVHH6HFWLRQ
x GLVFRQWLQXHWHVWDUWLFOH±WKLVGHFLVLRQZLOOSURPSWWKH(27HYDOXDWLRQ

(DFKGDLO\GHFLVLRQLVWREHUHFRUGHGRQVRXUFHGRFXPHQWVDQGWKHLQIRUPDWLRQWUDQVIHUUHGWR
H&5)VE\EOLQGHGVWXG\VLWHSHUVRQQHO
1RWHWKHIROORZLQJ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x $WDOOWLPHVGXULQJWKHVWXG\WKHGHFLVLRQWRFRQWLQXHLYVZLWFKWRSRRUGLVFRQWLQXHWHVW
DUWLFOHLVPDGHEDVHGRQWKHFOLQLFDOMXGJPHQWRIWKHLQYHVWLJDWRU
x 7KHLQYHVWLJDWRUPD\XVHWKHFXOWXUHDQGVXVFHSWLELOLW\UHVXOWVIURPWKHORFDOPLFURELRORJ\
ODERUDWRU\WRKHOSJXLGHWKHUDS\KRZHYHUGHFLVLRQVWRFRQWLQXHRUGLVFRQWLQXHWHVWDUWLFOH
VKRXOGEHEDVHGRQFOLQLFDOUHVSRQVHUDWKHUWKDQVXVFHSWLELOLW\UHVXOWVDVRPDGDF\FOLQH
VXVFHSWLELOLW\WHVWLQJLVQRWDYDLODEOHDWWKHORFDOVLWH,IWKH&$%3LVFDXVHGE\D
PLFURRUJDQLVPWKDWLVQRWVXVFHSWLEOHWRPR[LIOR[DFLQLQYLWURWKHGHFLVLRQWRFRQWLQXHRU
GLVFRQWLQXHVWXG\WUHDWPHQWVKRXOGEHEDVHGRQWKHVXEMHFW
VFOLQLFDOFRXUVHDQGWKH
LQYHVWLJDWRU¶VFOLQLFDOMXGJPHQW7KHVHFDVHVVKRXOGEHGLVFXVVHGZLWKWKH0HGLFDO0RQLWRU
7KHUDWLRQDOHIRUWKLVGHFLVLRQVKRXOGEHUHFRUGHGLQVRXUFHGRFXPHQWV

6HOHFWLRQDQG7LPLQJRI,9'RVHIRU(DFK6XEMHFW
7RIDFLOLWDWHVWXG\HQUROOPHQWDWDOOWLPHVRIWKHGD\DQGSHUPLWVXEMHFWVWREH³VKLIWHG´WRDPRUH
SUDFWLFDOGRVLQJVFKHGXOHFRQVLVWHQWZLWKKRVSLWDOVFKHGXOHVSURYLVLRQLVPDGHIRUOLPLWHG
DGMXVWPHQWRIWKHGRVLQJLQWHUYDO6SHFLILFDOO\LQIXVLRQWLPHVPD\EHDGMXVWHGXSWRKRXUV
SHULQIXVLRQLQWHUYDOXQWLOWKHGHVLUHGDGPLQLVWUDWLRQVFKHGXOHLVDFKLHYHG
2QFHWKHGHVLUHGVWDUWRILQIXVLRQWLPHLVGHWHUPLQHGVXEVHTXHQWLQIXVLRQVVKRXOGEH³DQFKRUHG´
WRWKDWWLPH7KDWLVWKHUHDIWHUWKHVWDUWRILQIXVLRQVKRXOGEHZLWKLQKRXURIWKHVSHFLILHG
WDUJHWLQIXVLRQWLPH
 6ZLWFKWR2UDO7UHDWPHQW

7KHGHFLVLRQWRVZLWFKWRSRWUHDWPHQWVKRXOGEHPDGHE\WKHLQYHVWLJDWRU)RUDVXEMHFWWREH
FRQVLGHUHGFOLQLFDOO\VWDEOHDQGPHHWFULWHULDIRUWUDQVLWLRQWRDSRUHJLPHQWKH\PXVWKDYHWKH
IROORZLQJILQGLQJVQRWHGLQVRXUFHGRFXPHQWVDQGUHFRUGHGRQWKHH&5)
x 7HPSHUDWXUH&)
x +HDUWUDWHEHDWVPLQXWH
x 55EUHDWKVPLQXWH
x 6%3PP+J
x 2[\JHQVDWXUDWLRQDVPHDVXUHGE\SXOVHR[LPHWU\RU3D2PP+JE\$%*
x 1RZRUVHQLQJRI&$%3V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQG\VSQHD
FRPSDUHGWR6FUHHQLQJ
x 1RUPDOPHQWDOVWDWXV³DEVHQFHRIFRQIXVLRQ´RUSUHLOOQHVV%DVHOLQHIRUVXEMHFWVZKRGLG
QRWKDYHQRUPDOPHQWDOVWDWXVEHIRUHRQVHWRISQHXPRQLD
x $ELOLW\WRPDLQWDLQSRLQWDNH

6ZLWFKWRSRZLOO127EHSHUPLWWHGXQWLODIWHUWKHVXEMHFWKDVFRPSOHWHGDWOHDVWWKHILUVWGD\V
RILYWUHDWPHQWDIWHULYGRVHV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7KHGDWHDQGWLPHWKHLQYHVWLJDWRUFRQILUPHGWKHFULWHULDIRUWKHVXEMHFW¶VHOLJLELOLW\IRUSR
WUHDWPHQWZHUHPHWDQGPDGHWKHGHFLVLRQWRVZLWFKWRSRWUHDWPHQWZLOOEHUHFRUGHGRQVRXUFH
GRFXPHQWVDQGWKHLQIRUPDWLRQWUDQVIHUUHGWRH&5)VE\VWXG\VLWHSHUVRQQHO)RUVXEMHFWVWKDW
KDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRVWXG\'D\YLVLWV
PXVWEHFRQGXFWHGRQVWXG\'D\VDQGZKLOHDVWXG\'D\YLVLWLVRSWLRQDO
 2UDO7UHDWPHQW3KDVH7HVW$UWLFOH

7UHDWPHQWUHJLPHQVIRUSRGRVLQJDUHVKRZQLQ7DEOH:KHQVZLWFKLQJIURPLYWRSRWHVW
DUWLFOHWKHUHFRPPHQGHGLQWHUYDOEHWZHHQGRVHVZLOOEHPDLQWDLQHG7KHILUVWSRGRVHIRUERWK
RPDGDF\FOLQHDQGPR[LIOR[DFLQWUHDWPHQWDUPVVKRXOGEHJLYHQLQWKHPRUQLQJWRKRXUV
DIWHUWKHODVWLYGRVH
7KHSRWUHDWPHQWSKDVHZLOOHPSOR\DGRXEOHEOLQGGRXEOHGXPP\GHVLJQXVLQJRPDGDF\FOLQH
SODFHERFRPSDUDWRUWDEOHWVRIPDWFKLQJVL]HDQGVKDSHWRDFWLYHRPDGDF\FOLQHWDEOHWVDQG
PDWFKLQJRYHUHQFDSVXODWHGSODFHERDQGDFWLYHPR[LIOR[DFLQWDEOHWV
7RPDLQWDLQLQYHVWLJDWRUDQGVXEMHFWEOLQGLQJVXEMHFWVRQERWKDUPVZLOOUHFHLYHWDEOHWVDQG
RYHUHQFDSVXODWHGWDEOHWLQWKHPRUQLQJDVVKRZQLQ7DEOHEHORZ
7DEOH
7UHDWPHQW5HJLPHQVIRU2UDO7HVW$UWLFOH
7LPHRI'RVLQJ
2PDGDF\FOLQH$UP
0R[LIOR[DFLQ$UP
'RVLQJ&RQGLWLRQDE
0RUQLQJ

7ZRPJWDEOHWVDQG
RYHUHQFDSVXODWHGSODFHER
WDEOHWUHVHPEOLQJPR[LIOR[DFLQ
2QHPJRYHUHQFDSVXODWHG
WDEOHWDQGSODFHERWDEOHWV
UHVHPEOLQJRPDGDF\FOLQH
WDEOHWV
)DVWLQJRYHUQLJKWQRIRRG
RUGULQNH[FHSWZDWHUIRU
DWOHDVWKRXUVEHIRUH
GRVLQJDIWHUGRVLQJQR
IRRGIRUKRXUVQRGDLU\
SURGXFWVIRUKRXUV

D
$OOGRVHVRISRWHVWDUWLFOHVKRXOGEHWDNHQZLWKZDWHU
E
$OOVXEMHFWVZLOOEHLQVWUXFWHGWRDYRLGWDNLQJDQWDFLGVDQGPXOWLYLWDPLQVFRQWDLQLQJPXOWLYDOHQWFDWLRQVHJ
DOXPLQXPPDJQHVLXPFDOFLXPELVPXWKLURQRU]LQFZKLOHWDNLQJSRWHVWDUWLFOH

:KHQVXEMHFWVDUHVZLWFKHGWRSRWKHUDS\VXEMHFWVZLOOEHJLYHQLQVWUXFWLRQVRQKRZWR
DGPLQLVWHUWKHSRWKHUDS\DVXEMHFWGLDU\WRUHFRUGGDWHVDQGWLPHVRISRWUHDWPHQWDQGDGD\
VXSSO\RISRWHVWDUWLFOH6WXG\SHUVRQQHOZLOOUHYLHZWKHGRVLQJGLDU\DQGWDEOHWFRXQWZLWKWKH
VXEMHFWZKHQWKHSRWKHUDS\LVILUVWGLVSHQVHGWRWKHVXEMHFWDQGDWVXEVHTXHQWYLVLWVXQWLOWKH
VXEMHFWKDVFRPSOHWHGWKHUDS\6WXG\SHUVRQQHOZLOOUHYLHZDQGUHFRUGZKLFKPHGLFDWLRQLV
WDNHQLQWKHH&5)
0DQDJHPHQWZKLOHRQ2UDO7HVW$UWLFOH
:KLOHWKHVXEMHFWLVUHFHLYLQJSRWKHUDS\WKHLQYHVWLJDWRUVKRXOGDVVHVVWKHVXEMHFWRQVWXG\'D\
DQGDQGFKRRVHRIWKHIROORZLQJDFWLRQV
x FRQWLQXHSRWHVWDUWLFOH


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x GLVFRQWLQXHWHVWDUWLFOH±WKLVGHFLVLRQZLOOSURPSWWKH(27HYDOXDWLRQ

7KHGDWHWLPHDQGWKHGHFLVLRQRIWKHLQYHVWLJDWRUZLOOEHUHFRUGHGRQVRXUFHGRFXPHQWVDQGWKH
LQIRUPDWLRQWUDQVIHUUHGWRH&5)VE\VWXG\VLWHSHUVRQQHO
7KHLQYHVWLJDWRUPD\XVHWKHFXOWXUHDQGVXVFHSWLELOLW\UHVXOWVIURPWKHORFDOPLFURELRORJ\
ODERUDWRU\WRKHOSJXLGHWKHUDS\KRZHYHUGHFLVLRQVWRFRQWLQXHRUGLVFRQWLQXHWHVWDUWLFOHVKRXOG
EHEDVHGRQFOLQLFDOUHVSRQVHUDWKHUWKDQVXVFHSWLELOLW\UHVXOWVDVRPDGDF\FOLQHVXVFHSWLELOLW\
WHVWLQJLVQRWDYDLODEOHDWWKHORFDOVLWH,IWKH&$%3LVFDXVHGE\DPLFURRUJDQLVPWKDWLVQRW
VXVFHSWLEOHWRPR[LIOR[DFLQLQYLWURWKHGHFLVLRQWRFRQWLQXHRUGLVFRQWLQXHVWXG\WUHDWPHQW
VKRXOGEHEDVHGRQWKHVXEMHFW
VFOLQLFDOFRXUVHDQGWKHLQYHVWLJDWRU¶VFOLQLFDOMXGJPHQW7KHVH
FDVHVVKRXOGEHGLVFXVVHGZLWKWKH0HGLFDO0RQLWRU7KHUDWLRQDOHIRUWKLVGHFLVLRQVKRXOGEH
UHFRUGHGLQWKHVRXUFHGRFXPHQWV

3HUPLWWHG'RVH$GMXVWPHQWVDQG,QWHUUXSWLRQVRI7HVW$UWLFOH
1RQH
 )ROORZXS3KDVH
6XEMHFWVZLOOEHHYDOXDWHGDWYLVLWVDIWHUWKHFRPSOHWLRQRIWUHDWPHQWDWWKH37(WRGD\V
DIWHUWKHODVWWUHDWPHQWGD\DQGDWD)LQDO)ROORZXSDVVHVVPHQWWRGD\VDIWHUWKHILUVWGRVH
RIWUHDWPHQWVHH678'<)/2:&+$577KH)LQDO)ROORZXSDVVHVVPHQWPD\EHFRQGXFWHG
YLDWHOHSKRQHFRQWDFWRUE\DQRWKHULQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUHFRQVLGHUHGWR
EH&OLQLFDO6XFFHVVHVDQGKDGQR$(VRUFOLQLFDOO\VLJQLILFDQWODERUDWRU\RU(&*DEQRUPDOLWLHV
QRWHGDWRUDIWHUWKH37(YLVLW2WKHUZLVHWKLVDVVHVVPHQWLVWREHSHUIRUPHGZLWKDQLQSHUVRQ
VWXG\YLVLW
 7RWDO9ROXPHRI%ORRG&ROOHFWHG
7KHWRWDOYROXPHRIEORRGFROOHFWHGIURPHDFKVXEMHFWIRUWKLVSURWRFROZLOOEHXSWR
DSSUR[LPDWHO\P/GHSHQGLQJRQWKHVXEMHFW¶VGXUDWLRQRIVWXG\SDUWLFLSDWLRQ
 7(67$57,&/($1'$'0,1,675$7,21
7HVWDUWLFOHZLOOEHVXSSOLHGE\3DUDWHN3KDUPD//&WKHVSRQVRU7HVWDUWLFOHZLOOEHODEHOHG
DFFRUGLQJWRUHJXODWLRQV
7KHWHVWDUWLFOHVKRXOGEHDGPLQLVWHUHGRQO\WRVXEMHFWVZKRKDYHSURYLGHGLQIRUPHGFRQVHQWDQG
ZKRPHHWDOORIWKHLQFOXVLRQFULWHULDDQGQRQHRIWKHH[FOXVLRQFULWHULD2QFHWKHWHVWDUWLFOHKDV
EHHQDVVLJQHGWRDVXEMHFWLWPXVWQRWEHUHDVVLJQHGWRDQRWKHUVXEMHFW
 7HVW$UWLFOH$GPLQLVWUDWLRQ
6XEMHFWVZLOOEHUDQGRPL]HGWRRIWKHIROORZLQJWUHDWPHQWDUPV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x ,QYHVWLJDWLRQDOWKHUDS\RPDGDF\FOLQHPJLYTKILUVWGRVHVIROORZHGE\PJ
LYTKVWDUWLQJKRXUVDIWHUILUVWGRVHZLWKWKHRSWLRQWRVZLWFKWRPJWZRPJ
RPDGDF\FOLQHWDEOHWVDQGRYHUHQFDSVXODWHGSODFHERWDEOHWPDWFKLQJPR[LIOR[DFLQSR
TKDIWHUDWOHDVWGD\VGRVHVRILYWUHDWPHQW
x 5HIHUHQFHWKHUDS\PR[LIOR[DFLQPJLYTKZLWKDVLQJOHSODFHERLQIXVLRQWRPDWFK
WKHRPDGDF\FOLQHGRVLQJUHJLPHQKRXUVDIWHUWKHILUVWGRVHRQ'D\ZLWKWKHRSWLRQWR
VZLWFKWRPJRQHPJPR[LIOR[DFLQRYHUHQFDSVXODWHGWDEOHWDQGSODFHERWDEOHWV
PDWFKLQJRPDGDF\FOLQHWDEOHWVSRTKDIWHUDWOHDVWGD\VGRVHVRILYWUHDWPHQW

$OOVXEMHFWVVKRXOGUHFHLYHDWOHDVWGD\VDQGDWPRVWGD\VLYDQGSRFRPELQHGRIWHVW
DUWLFOHWKHUDS\

,GHQWLW\RIWKH,QYHVWLJDWLRQDO3URGXFW
7DEOH
,QWUDYHQRXV)RUPXODWLRQ
$FWLYHLQJUHGLHQW
2PDGDF\FOLQH
























7DEOH
2UDO)RUPXODWLRQ
$FWLYHLQJUHGLHQW
2PDGDF\FOLQH







2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7DEOH
2UDO)RUPXODWLRQ
$FWLYHLQJUHGLHQW
2PDGDF\FOLQH
















 ,QYHVWLJDWLRQDODQG&RPSDUDWRU7HVW$UWLFOH

,QYHVWLJDWLRQDO7HVW$UWLFOH2PDGDF\FOLQH
x PJLYTKIRUILUVWGRVHVIROORZHGE\PJLYTKVWDUWLQJKDIWHUILUVWGRVH
x PJSRTKDIWHUFRPSOHWLRQRIDWOHDVWGD\VGRVHVRILYWUHDWPHQWDWWKHGLVFUHWLRQ
RIWKHLQYHVWLJDWRUDQGPHHWLQJPLQLPXPFULWHULDIRUSRVZLWFKDVRXWOLQHGLQ
6HFWLRQ
x 7RWDOWUHDWPHQWGXUDWLRQRIWRGD\V


&RPSDUDWRU7HVW$UWLFOH0R[LIOR[DFLQ
x PJLYTKZLWKDVLQJOHSODFHERLQIXVLRQWRPDWFKWKHRPDGDF\FOLQHGRVLQJUHJLPHQ
KRXUVDIWHUWKHILUVWGRVHRQ'D\
x PJSRTKDIWHUFRPSOHWLRQRIDWOHDVWGD\VGRVHVRILYWUHDWPHQWDWWKHGLVFUHWLRQ
RIWKHLQYHVWLJDWRUDQGPHHWLQJPLQLPXPFULWHULDIRUSRVZLWFKDVRXWOLQHGLQ
6HFWLRQ
x 7RWDOWUHDWPHQWGXUDWLRQRIWRGD\V

 6XEMHFW&RPSOLDQFHZKLOHRQ2UDO7HVW$UWLFOH
,QWUDYHQRXVDGPLQLVWUDWLRQDQGFRPSOLDQFHZLOOEHPDQDJHGE\VWXG\SHUVRQQHOSULRUWR
VZLWFKLQJWRSRWHVWDUWLFOH6WXG\SHUVRQQHODWWKHVLWHVKRXOGPRQLWRUSRWHVWDUWLFOHFRPSOLDQFH
DWHDFKVWXG\YLVLWE\FRPSDULQJWKHUHWXUQHGWHVWDUWLFOHZLWKWKHGRVLQJLQIRUPDWLRQUHSRUWHGLQ
WKHVXEMHFWFKDUWVDQGVXEMHFWGLDULHV&RPSOLDQFHDQGDQ\XQUHVROYHGGLVFUHSDQFLHVZLOOEH
GRFXPHQWHGLQWKHVRXUFHGRFXPHQWDQGRQWKHGUXJLQYHQWRU\UHFRUG7KHWHVWDUWLFOHH&5)


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

VKRXOGUHIOHFWWKHUHFRQFLOHGGRVLQJLQIRUPDWLRQSURYLGHGE\WKHVXEMHFWFKDUWVDQGVXEMHFW
GLDULHV
 6$)(7<
$Q\VXEMHFWZKRUHFHLYHWHVWDUWLFOHZLOOEHLQFOXGHGLQWKHHYDOXDWLRQIRUVDIHW\
6DIHW\LVDVVHVVHGE\WKHIROORZLQJPHDVXUHV
x 3K\VLFDOH[DPV
x $(VDQG6$(V
x 9LWDOVLJQV
x /DERUDWRU\DVVHVVPHQWV
x OHDG(&*
x 3UHJQDQF\DVVHVVPHQWV

3K\VLFDO([DPLQDWLRQV
$IWHU6FUHHQLQJDSK\VLFDOH[DPLQDWLRQVKRXOGEHFRQGXFWHGRQWKHVWXG\GD\VLQGLFDWHGLQWKH
678'<)/2:&+$57DQGDWWKH(27DQG37(YLVLWV$Q\DEQRUPDOLWLHVRUFKDQJHVLQ
LQWHQVLW\QRWHGGXULQJWKHUHYLHZRIWKHERG\V\VWHPVVKRXOGEHGRFXPHQWHGLQWKHVRXUFH
GRFXPHQWV,IDQHZFOLQLFDOO\VLJQLILFDQWILQGLQJRFFXUVLHQRWQRWHGDW6FUHHQLQJDIWHUWKH
6FUHHQLQJH[DPLWPXVWEHFDSWXUHGDVDQ$(,QDGGLWLRQUHVROXWLRQRIDQ\FOLQLFDOO\
VLJQLILFDQWDEQRUPDOILQGLQJVWKDWKDYHEHHQUHSRUWHGDVDQ$(ZLOOEHQRWHGLQWKHPHGLFDO
UHFRUGDQGWKH$(H&5)

9LWDO6LJQV
9LWDOVLJQVLQFOXGLQJERG\WHPSHUDWXUH%3SXOVHKHDUWUDWHDQG55VKRXOGEHUHFRUGHGSULRUWR
HDFKGRVHZKLOHWKHVXEMHFWLVRQLYWUHDWPHQW7KHUHDIWHUYLWDOVLJQVVKRXOGEHUHFRUGHGDWDOO
YLVLWVZLWKWKHH[FHSWLRQRIWKH)LQDO)ROORZXSYLVLW
x ,QDGGLWLRQIRUWKHILUVWGRVHVRIWHVWDUWLFOHW KRXUVW KRXUVW KRXUVVHH
7DEOHKHDUWUDWHDQG%3VKRXOGEHUHFRUGHGDWWKHIROORZLQJWLPHVMXVWSULRUWRWKHILUVW
LQIXVLRQZLWKLQPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQDQGDJDLQKRXUV
DIWHUWKHVWDUWRIWKHILUVWLQIXVLRQ

$OOYLWDOVLJQVVKRXOGEHFDSWXUHGDIWHUPLQXWHVPLQXWHVRIUHVWZKLOHLQDQRQVWDQGLQJ
SRVLWLRQVXSLQHRUVHPLUHFXPEHQWKHDGRIEHGIURPWR6XEVHTXHQWYLWDOVLJQ
PHDVXUHPHQWVVKRXOGEHFDSWXUHGLQWKHVDPHQRQVWDQGLQJSRVLWLRQ
6\VWROLFDQGGLDVWROLF%3ZLOOEHPHDVXUHGXVLQJDQDXWRPDWHGYDOLGDWHGGHYLFHZLWKDQ
DSSURSULDWHO\VL]HGFXII


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

3XOVHZLOOEHPHDVXUHGXVLQJDQDXWRPDWHGYDOLGDWHGGHYLFHZKHQDYDLODEOH,IQRWDYDLODEOH
SXOVHZLOOEHPHDVXUHGPDQXDOO\
,QDGGLWLRQWRWKHDERYH%3DQGKHDUWUDWHPD\EHPHDVXUHGZKHQHYHUFOLQLFDOO\LQGLFDWHGDWWKH
GLVFUHWLRQRIWKHWUHDWLQJSK\VLFLDQ$Q\VXEMHFWZKRH[SHULHQFHVDQ$(RIQRQSOHXULWLFFDUGLDF
FKHVWSDLQSDOSLWDWLRQVRUWDFK\DUUK\WKPLDZKLOHRQVWXG\VKRXOGKDYHDQ(&*DQGDQ
HYDOXDWLRQE\WKHLQYHVWLJDWRUVHH6HFWLRQ
7HPSHUDWXUHZLOOEHREWDLQHGXVLQJDQHOHFWURQLFUDSLGUHDGLQJGHYLFHZKHQHYHUSRVVLEOH
55ZLOOEHGHWHUPLQHGE\REVHUYDWLRQ
2QFHWKHVXEMHFWLVGLVFKDUJHGIURPWKHKRVSLWDOYLWDOVLJQVZLOOEHUHFRUGHGDWHDFKUHWXUQ
FOLQLFDOYLVLWE\EOLQGHGVWXG\SHUVRQQHO

/DERUDWRU\(YDOXDWLRQV
%ORRGVDPSOHVIRUKHPDWRORJ\FKHPLVWU\DQGFRDJXODWLRQSURWKURPELQWLPHRQO\VKRXOGEH
GUDZQDW6FUHHQLQJ'D\'D\'D\(27DQG37(VHH678'<)/2:&+$57$W
6FUHHQLQJRQO\VDPSOHZLOOEHDQDO\]HGDWDORFDOODERUDWRU\IRUFRQILUPDWLRQRIHOLJLELOLW\
FULWHULDDQGDVHFRQGVDPSOHZLOOEHVKLSSHGWRWKH&HQWUDO/DERUDWRU\IRUDQDO\VLV$WDOORWKHU
YLVLWVVDPSOHVVKRXOGEHVKLSSHGWRWKH&HQWUDO/DERUDWRU\IRUDQDO\VLV
7KH&HQWUDO/DERUDWRU\ZLOOEHXVHGIRUVDIHW\DQDO\VLVRIDOOVSHFLPHQVFROOHFWHG'HWDLOVRQWKH
FROOHFWLRQWXEHVDQGFRQWDLQHUVVKLSPHQWRIVDPSOHVDQGUHSRUWLQJRIUHVXOWVE\WKH&HQWUDO
/DERUDWRU\DUHSURYLGHGWRLQYHVWLJDWRUVLQWKH&HQWUDO/DERUDWRU\0DQXDO
%HFDXVHVXEMHFWHQUROOPHQWZLOOQRWSHUPLWXVLQJ&HQWUDO/DERUDWRU\UHVXOWVWRDVVHVVDVXEMHFW¶V
PHHWLQJLQFOXVLRQH[FOXVLRQFULWHULDLWLVH[SHFWHGWKDWORFDOODERUDWRU\WHVWLQJZLOOEHXVHGLQ
FLUFXPVWDQFHVZKHUHWKLVWHVWLQJLVQHHGHGWRDVVHVVDVXEMHFW¶V:%&FRXQWRUGLIIHUHQWLDOVHUXP
WUDQVDPLQDVHRUELOLUXELQOHYHOVVHUXPFUHDWLQLQHRUSUHJQDQF\WHVWLQJIRUZRPHQRQO\
 +HPDWRORJ\

7KHDQDO\WHVOLVWHGLQWKHWDEOHEHORZ7DEOHZLOOEHPHDVXUHGDWWKH&HQWUDO/DERUDWRU\
7DEOH
+HPDWRORJ\3DQHO
+HPDWRFULW
7RWDOUHGEORRGFHOOFRXQW
+HPRJORELQ
0HDQFHOOKHPRJORELQ
0HDQFHOOKHPRJORELQFRQFHQWUDWLRQ
0HDQFHOOYROXPH
:%&FRXQW
3ODWHOHWFRXQW
:KLWHEORRGFHOOGLIIHUHQWLDODVFHOOFRXQWV

1HXWURSKLOV

/\PSKRF\WHV

0RQRF\WHV

(RVLQRSKLOV

%DVRSKLOV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7DEOH
+HPDWRORJ\3DQHO

 &OLQLFDO&KHPLVWU\

7KHDQDO\WHVLQGLFDWHGLQWKHWDEOHEHORZ7DEOHEHORZZLOOEHPHDVXUHGDWWKH&HQWUDO
/DERUDWRU\
7DEOH
&OLQLFDO&KHPLVWU\3DQHO
%ORRGJOXFRVH
8UHD
&UHDWLQLQH
6RGLXP
3RWDVVLXP
&KORULGH
%LFDUERQDWH
$/7
$67
$3
7RWDOELOLUXELQ
7RWDOSURWHLQ
0DJQHVLXP
$OEXPLQ

/'+
&.
&.LVRHQ]\PHWHVWLQJDVUHTXLUHG
&DOFLXP
3KRVSKDWH
&KROHVWHURO
8ULF$FLG
**7
$P\ODVH
/LSDVH
$/7 DODQLQHDPLQRWUDQVIHUDVH$67 DVSDUWDWHDPLQRWUDQVIHUDVH$3 DONDOLQHSKRVSKDWDVH/'+ ODFWDWH
GHK\GURJHQDVH&. FUHDWLQHSKRVSKRNLQDVH**7 JDPPDJOXWDP\OWUDQVSHSWLGDVH
 2WKHUODERUDWRU\WHVWV

7DEOH
$GGLWLRQDO/DERUDWRU\7HVWV
&DWHJRU\
7HVW
1RWH
&RDJXODWLRQ
,15
3URWKURPELQWLPHRQO\
)HPDOHHQGRFULQRORJ\
ȕK&*IRUZRPHQRQO\
6HH6HFWLRQEHORZ'RQHERWKORFDOO\XULQH
DQGFHQWUDOO\VHUXP
,15 LQWHUQDWLRQDOQRUPDOL]HGUDWLRȕK&* EHWD±KXPDQFKRULRQLFJRQDGRWURSLQ

6DIHW\6WXGLHVWREH3HUIRUPHG/RFDOO\
 (OHFWURFDUGLRJUDP

$VWDQGDUGOHDG(&*VKRXOGEHREWDLQHGXVLQJHTXLSPHQWSURYLGHGE\WKHVSRQVRU7KH(&*
ZLOOEHREWDLQHGDIWHUWKHVXEMHFWKDVEHHQLQDVHPLUHFXPEHQWSRVLWLRQIRUDSSUR[LPDWHO\
PLQXWHVDWWKHIROORZLQJWLPHV
x 6FUHHQLQJ
x -XVWSULRUZLWKLQPLQXWHVWRWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWGRVHRIWHVWDUWLFOH
W KRQ7DEOH
x PLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWGRVHRIWHVWDUWLFOH


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x -XVWSULRUZLWKLQPLQXWHVWRWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHWKLUGGRVHRIWHVWDUWLFOH
W KRQ7DEOH
x PLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHWKLUGGRVHRIWHVWDUWLFOH
x $WWKH'D\YLVLW
x $WWKH(27YLVLW
x ,QDQ\FDVHLQZKLFKDVXEMHFWGHYHORSVDQ$(RIQRQSOHXULWLFFDUGLDFFKHVWSDLQ
SDOSLWDWLRQVWDFK\DUUK\WKPLDRUDVRWKHUZLVHFOLQLFDOO\LQGLFDWHGVHH6HFWLRQ

5HDGLQJDQGLQWHUSUHWDWLRQRIWKH(&*ZLOOEHSHUIRUPHGFHQWUDOO\DQGSURYLGHGWRWKH
LQYHVWLJDWRU7KHLQYHVWLJDWRULVUHVSRQVLEOHIRUUHYLHZLQJLQWHUSUHWDWLRQVDQGIRUUHWDLQLQJKDUG
FRSLHVRIWKHUHSRUWV
 3UHJQDQF\DQG$VVHVVPHQWVRI)HUWLOLW\

$OOZRPHQZLOOKDYHDXULQHSUHJQDQF\WHVWDWWKHVLWHDWWKH6FUHHQLQJYLVLW8ULQHSUHJQDQF\
WHVWNLWVZLOOEHSURYLGHGE\WKHVSRQVRUWKURXJKWKH&HQWUDO/DERUDWRU\,IDSRVLWLYHXULQH
SUHJQDQF\WHVWUHVXOWLVREWDLQHGDWWKHVLWHWKHZRPDQLVQRWWREHUDQGRPL]HG$VHUXPVDPSOH
IRUȕK&*WHVWLQJZLOOEHFROOHFWHGDWWKH6FUHHQLQJYLVLWDQGVHQWWRWKH&HQWUDO/DERUDWRU\IRU
FRQILUPDWLRQRIWKHXULQHSUHJQDQF\UHVXOWV6HUXPVDPSOHVIRUȕK&*WHVWLQJDWWKH&HQWUDO
/DERUDWRU\DOVRZLOOEHFROOHFWHGDW(27DQG37(,IDSRVLWLYHȕK&*UHVXOWLVUHSRUWHGE\WKH
&HQWUDO/DERUDWRU\DIWHUDZRPDQLVHQUROOHGWHVWDUWLFOHDGPLQLVWUDWLRQVKRXOGEHGLVFRQWLQXHG
VHH6HFWLRQ
 %ORRG&XOWXUHV

7ZRVHWVRIEORRGFXOWXUHVILUVWVHW DHURELFERWWOHDQDHURELFERWWOHVHFRQG
VHW DHURELFERWWOHVVKRXOGEHFROOHFWHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVW
DUWLFOH(DFKVHWRIEORRGFXOWXUHVVKRXOGEHFROOHFWHGE\GLUHFWYHQLSXQFWXUHIURPLQGHSHQGHQW
ERG\VLWHVPLQXWHVDSDUW,IEDFWHULDDUHLVRODWHGIURPEDVHOLQHEORRGFXOWXUHVUHSHDW
EORRGFXOWXUHVVKRXOGEHFROOHFWHGRQWKHGD\WKDWWKHSRVLWLYHEORRGFXOWXUHLVGHWHFWHG,I
VXEVHTXHQWEORRGFXOWXUHVDUHDOVRSRVLWLYHUHSHDWWKHEORRGFXOWXUHVDVQHFHVVDU\XQWLOQHJDWLYH
EORRGFXOWXUHVDUHREWDLQHG%ORRGFXOWXUHLVRODWHVVKRXOGEHVHQWWRWKH&HQWUDO/DERUDWRU\VHH
6HFWLRQ
 $GGLWLRQDO/RFDO/DERUDWRU\7HVWV

7KHLQYHVWLJDWRUPD\RUGHUDGGLWLRQDOORFDOODERUDWRU\WHVWVFRQVLVWHQWZLWKKLVKHUURXWLQH
VWDQGDUGRIFDUH
 $SSURSULDWHQHVVRI6DIHW\0HDVXUHPHQWV
7KHVDIHW\DVVHVVPHQWVVHOHFWHGDUHVWDQGDUGIRUWKLVLQGLFDWLRQDQGVXEMHFWSRSXODWLRQ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 ()),&$&<
 3ULPDU\DQG6HFRQGDU\(IILFDF\9DULDEOHV
,QRUGHUWRVDWLVI\GLIIHUHQWKHDOWKDXWKRULW\UHTXLUHPHQWVWKHSULPDU\YDULDEOHVZLOOEHWHVWHG
ZLWKUHVSRQVHHQGSRLQWV
x 6XFFHVVIXO(DUO\&OLQLFDO5HVSRQVHKRXUVDIWHUILUVWGRVHZLOOEHGHWHUPLQHG
SURJUDPPDWLFDOO\DQGGHILQHGDVVXUYLYDOZLWKLPSURYHPHQWLQDWOHDVWRIVXEMHFW
V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQG\VSQHDDVDVVHVVHGE\WKH
LQYHVWLJDWRUZLWKRXWGHWHULRUDWLRQLQDQ\RIWKHVHV\PSWRPV
x 6XFFHVVIXO,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(YLVLWGHILQHGDV
VXUYLYDODIWHUFRPSOHWLRQRIDWHVWDUWLFOHUHJLPHQZLWKUHVROXWLRQRIVLJQVDQGV\PSWRPV
RIWKHLQIHFWLRQWRWKHH[WHQWWKDWIXUWKHUDQWLEDFWHULDOWKHUDS\LVQRWQHFHVVDU\

7KH(DUO\&OLQLFDO5HVSRQVHHQGSRLQWZLOOEHWKHSULPDU\HIILFDF\RXWFRPHVXSSRUWLQJ
UHJLVWUDWLRQZLWKWKH)'$LQWKH86DQGWKLVZLOOEHWHVWHGLQWKHLQWHQWWRWUHDW,77DQDO\VLV
SRSXODWLRQ7KH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQWZLOOEHWKH
SULPDU\HIILFDF\RXWFRPHVXSSRUWLQJUHJLVWUDWLRQZLWKWKH(0$LQWKH(XURSHDQ8QLRQ(8DQG
ZLOOEHWHVWHGLQWKH,77DQGFOLQLFDOO\HYDOXDEOH&(SRSXODWLRQVFRSULPDU\HQGSRLQWV7KH
DQDO\VLVRIWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(DVWKHSULPDU\HIILFDF\
RXWFRPHZLOOEHGHWDLOHGLQDVHSDUDWH6$3IRUWKH(0$
6HFRQGDU\HIILFDF\YDULDEOHVZLOOLQFOXGH
x 5HVSRQVHFDWHJRU\IRU(DUO\&OLQLFDO5HVSRQVH
x &OLQLFDO5HVSRQVHFDWHJRU\IRU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW(27DQG
37(
x &OLQLFDO5HVSRQVHFDWHJRU\DFFRUGLQJWRWKHLGHQWLILHGFDXVDWLYHSDWKRJHQ

 .H\$VVHVVPHQWV
7KHIROORZLQJLVDOLVWRINH\DVVHVVPHQWVWKDWZLOOEHSHUIRUPHG
x $VVHVVPHQWRIVLJQVDQGV\PSWRPVRI&$%3E\WKHLQYHVWLJDWRU
x 0LFURELRORJLFDODVVHVVPHQWRIWKHLQIHFWLRQ
x $VVHVVPHQWRIFOLQLFDOUHVSRQVH

(DFKRIWKHNH\DVVHVVPHQWVLVGHVFULEHGLQIXUWKHUGHWDLOEHORZ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&


$VVHVVPHQWRI&$%36\PSWRP6HYHULW\
7KHDVVHVVPHQWRI&$%3V\PSWRPVREVHUYHGE\WKHLQYHVWLJDWRUVKRXOGEHFRQGXFWHGDWHYHU\
VFKHGXOHGHYDOXDWLRQZLWKWKHH[FHSWLRQRIWKH)LQDO)ROORZXSDVVHVVPHQWVHH678'<
)/2:&+$577KHLQYHVWLJDWRUZLOOVSHFLILFDOO\DVVHVVWKHVHYHULW\OHYHORIWKHVXEMHFW¶V
V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDRQDSRLQWVFDOH
DEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD
6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWVHH$SSHQGL[
DQGHQWHUWKHV\PSWRPVHYHULW\VFRUHVLQWRWKHH&5))RUVXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSR
WHVWDUWLFOHDQGGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRVWXG\'D\YLVLWVPXVWEHFRQGXFWHGRQ
VWXG\'D\VDQGZKLOHDVWXG\'D\YLVLWLVRSWLRQDO

0LFURELRORJLFDO$VVHVVPHQWV
 5HVSLUDWRU\&XOWXUHDQG*UDP6WDLQ

$WWKH6FUHHQLQJYLVLWFROOHFWLRQRIDQDGHTXDWHTXDOLW\H[SHFWRUDWHGRULQGXFHGVSXWXPRURWKHU
UHVSLUDWRU\VSHFLPHQUHIOHFWLQJIOXLGIURPWKHORZHUUHVSLUDWRU\WUDFWHJUHVSLUDWRU\IOXLG
REWDLQHGE\EURQFKRDOYHRODUODYDJHRUEURQFKRVFRS\SOHXUDOIOXLGREWDLQHGE\WKRUDFHQWHVLVRU
H[SHFWRUDWHGRULQGXFHGVSXWXPPHHWLQJDGHTXDF\FULWHULDVKRXOGEHDWWHPSWHGIURPDOOVXEMHFWV
DQGVXEPLWWHGWRWKHORFDOPLFURELRORJ\ODERUDWRU\IRU*UDPVWDLQDQGFXOWXUHVHH678'<
)/2:&+$577KHGDWHWLPHDQGW\SHRIVSHFLPHQVXEPLWWHGZLOOEHUHFRUGHGRQVRXUFH
GRFXPHQWVDWWKHORFDOODERUDWRU\7KHVHVSHFLPHQVPD\EHREWDLQHGDVSDUWRIURXWLQHQRQ
VWXG\HYDOXDWLRQRIDVXEMHFWEHLQJHYDOXDWHGIRU&$%3DQGWKHUHIRUHFRXOGEHREWDLQHGSULRUWR
REWDLQLQJLQIRUPHGFRQVHQW
$QDGHTXDWHTXDOLW\VSXWXPVSHFLPHQZLOOEHGHILQHGDVKDYLQJWKHIROORZLQJILQGLQJVDV
UHSRUWHGE\WKHORFDOODERUDWRU\
 6TXDPRXVHSLWKHOLDOFHOOVORZSRZHUILHOGOSILHî
 !3RO\PRUSKRQXFOHDUFHOOVOSILHî

$GHTXDWHTXDOLW\VSXWXPVSHFLPHQVDQGRWKHU6FUHHQLQJUHVSLUDWRU\VSHFLPHQVIRUFXOWXUH
VKRXOGEHREWDLQHGSULRUWRILUVWGRVHRIWHVWDUWLFOH,QWKHHYHQWWKDWDVSXWXPVSHFLPHQLV
GHWHUPLQHGWREHLQDGHTXDWHRUFDQQRWEHREWDLQHGSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHFROOHFWLRQ
RIDVSHFLPHQVKRXOGEHDWWHPSWHGZLWKLQKRXUVDIWHUWKHILUVWGRVHRIWHVWDUWLFOH$VWKH
LQIHFWLRQUHVSRQGVWRWKHUDS\REWDLQLQJUHSHDWHGVSHFLPHQVIRUFXOWXUHRUH[DPLQDWLRQPD\QRW
EHFOLQLFDOO\DSSURSULDWHDQGRUWKHUHPD\EHQRPDWHULDOIRUFXOWXUH$WWKH(27DQGRU37(
YLVLWUHVSLUDWRU\VSHFLPHQFXOWXUHVDQG*UDPVWDLQVVKRXOGEHREWDLQHGRQO\IRUVXEMHFWVZKRDUH
&OLQLFDO)DLOXUHVDQGUHTXLUHDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3
$OOUHVSLUDWRU\DQGEORRGVSHFLPHQVVXEPLWWHGWRWKHORFDOODERUDWRU\DUHWREHSURFHVVHGIRUD
*UDPVWDLQRIWKHVSHFLPHQDQGIRUDHURELFFXOWXUH/DERUDWRU\UHSRUWVRQ*UDPVWDLQVVKRXOG
LQFOXGHDVHPLTXDQWLWDWLYHGHVFULSWLRQRIWKHQXPEHURISRO\PRUSKRQXFOHDUOHXNRF\WHVSHUORZ
SRZHUILHOGLHîDQGDGHVFULSWLRQRIEDFWHULDVHHQ)RU*UDPVWDLQVRIUHVSLUDWRU\


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

VSHFLPHQVDVHPLTXDQWLWDWLYHGHVFULSWLRQRIWKHQXPEHURIVTXDPRXVHSLWKHOLDOFHOOVSHUORZ
SRZHUILHOGLHîVKRXOGDOVREHLQFOXGHG
&XOWXUHUHVXOWVDUHWRLQFOXGHLGHQWLILFDWLRQRIDOOSDWKRJHQVWRWKHOHYHORIJHQXVDQGVSHFLHV
6XVFHSWLELOLW\WHVWLQJIRUPR[LIOR[DFLQRURWKHUIOXRURTXLQRORQHVFDQEHSHUIRUPHGORFDOO\
XVLQJDVWDQGDUGPHWKRGFKRVHQE\WKHODERUDWRU\5HVXOWVRIWKLVWHVWLQJFDQEHXVHGE\
LQYHVWLJDWRUVDORQJZLWKFOLQLFDOILQGLQJVWRKHOSJXLGHWKHUDS\
$OOLVRODWHVLGHQWLILHGE\WKHORFDOODERUDWRU\IURPH[SHFWRUDWHGRULQGXFHGVSXWXPVSHFLPHQV
PHHWLQJWKHFULWHULDWKDWGHILQHWKHVSHFLPHQDVEHLQJRIDGHTXDWHTXDOLW\DQGRUWKDWDUH
LVRODWHGIURPUHVSLUDWRU\VSHFLPHQVRUEORRGDQGDUHSRWHQWLDOSDWKRJHQVDVGHILQHGLQWKH
/RFDO5HJLRQDO&OLQLFDO0LFURELRORJ\/DERUDWRU\0DQXDOZLOOEHVXEPLWWHGWRWKH&HQWUDO
/DERUDWRU\IRUYHULILFDWLRQRIJHQXVDQGVSHFLHVDQGIRUVWDQGDUGL]HGPLQLPXPLQKLELWRU\
FRQFHQWUDWLRQ0,&WHVWLQJSHUIRUPHGIRURPDGDF\FOLQHPR[LIOR[DFLQDQGDSDQHORIFXUUHQWO\
DSSURYHGDQWLELRWLFV,QWKHHYHQWWKDWORFDOODERUDWRU\JHQXVDQGVSHFLHVLGHQWLILFDWLRQDUHQRW
FRQVLVWHQWZLWK&HQWUDO/DERUDWRU\UHVXOWVDEDFNXSLVRODWHVKRXOGEHVHQWWRWKH&HQWUDO
/DERUDWRU\
,QDGGLWLRQ*UDPVWDLQHGVOLGHVRIVSHFLPHQVSDUWLFXODUO\WKRVHRIVSXWXPVDPSOHVZLOOEH
VXEPLWWHGWRWKH&HQWUDO/DERUDWRU\,ILWLVQHFHVVDU\EDVHGRQORFDOODERUDWRU\UHTXLUHPHQWVD
GXSOLFDWHVOLGHRIWKHSULPDU\VSHFLPHQFDQEHSUHSDUHGIRUWKHSXUSRVHVRIUHWDLQLQJDWWKH
ORFDOODERUDWRU\
'HWDLOVFRQFHUQLQJ*UDPVWDLQVDQGFXOWXUHVZLOOEHSURYLGHGLQWKH/RFDO5HJLRQDO&OLQLFDO
0LFURELRORJ\/DERUDWRU\0DQXDO
 8ULQHIRU/HJLRQHOODSQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDH$QWLJHQ6FUHHQLQJ

$WWKH6FUHHQLQJYLVLWXULQHZLOOEHFROOHFWHGWRWHVWIRUWKHSUHVHQFHRI/HJLRQHOODSQHXPRSKLOD
DQG6WUHSWRFRFFXVSQHXPRQLDHDQWLJHQV7HVWLQJZLOOEHSHUIRUPHGDWWKHORFDOODERUDWRU\XVLQJ
NLWVVXSSOLHGE\WKHVSRQVRUDQGWKHUHVXOWVZLOOEHUHFRUGHGRQWKHH&5)
 6HURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHDQG&KODP\GRSKLOD

SQHXPRQLDH7LWHUV
$WWKH6FUHHQLQJYLVLWDQGDWWKH37(YLVLWEORRGVDPSOHVZLOOEHFROOHFWHGWRFRQGXFWVHURORJ\
IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHDQG&KODP\GRSKLODSQHXPRQLDHE\WKH
&HQWUDO/DERUDWRU\

$VVHVVPHQWRI&OLQLFDO2XWFRPH
$VVHVVPHQWRIFOLQLFDORXWFRPHZLOORFFXUDW(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW
SURJUDPPDWLFDOO\(27DQG37(DVGHVFULEHGEHORZ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 (YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DWWKH(DUO\&OLQLFDO5HVSRQVH$VVHVVPHQW

7KHIRUPDOGHWHUPLQDWLRQRIWKHUHVSRQVHWRWKHUDS\DWWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW
WRKRXUVDIWHUDGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOHZLOOEHGRQH
SURJUDPPDWLFDOO\XVLQJWKHLQYHVWLJDWRU¶VDVVHVVPHQWRIWKHVXEMHFW¶VV\PSWRPVDVVRFLDWHGZLWK
&$%3HQWHUHGLQWRWKHH&5)7KHLQYHVWLJDWRULVQRWUHVSRQVLEOHIRUFDWHJRUL]LQJVXEMHFWVDV
&OLQLFDO6XFFHVV)DLOXUHRU,QGHWHUPLQDWHDWWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW7KH
VHYHULW\RIWKHVXEMHFW&$%3V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQG
G\VSQHDZLOOEHHYDOXDWHGRQDSRLQWVFDOHDEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU
,QYHVWLJDWRU$VVHVVPHQWVHH$SSHQGL[$&$%3VXEMHFWV\PSWRPVHYHULW\DVVHVVPHQW
VKRXOGEHFRPSOHWHGDWHYHU\VFKHGXOHGHYDOXDWLRQZLWKWKHH[FHSWLRQRIWKH)LQDO)ROORZXS
DVVHVVPHQWVHH6HFWLRQDQG678'<)/2:&+$57)RUVXEMHFWVWKDWKDYHEHHQ
VZLWFKHGWRSRWHVWDUWLFOHDQGGLVFKDUJHGIURPWKHKRVSLWDOSULRUWRVWXG\'D\YLVLWVPXVWEH
FRQGXFWHGRQVWXG\'D\VDQGZKLOHDVWXG\'D\YLVLWLVRSWLRQDO
&OLQLFDO6XFFHVVDWWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQWZLOOEHGHILQHGDVVXUYLYDOZLWK
LPSURYHPHQWRIDWOHDVWOHYHOLHVHYHUHWRPRGHUDWHPRGHUDWHWRPLOGPLOGWRDEVHQW
FRPSDUHGWR6FUHHQLQJLQ&$%3V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQ
DQGG\VSQHDZLWKQRZRUVHQLQJE\DWOHDVWOHYHOLQWKHRWKHULQFOXVLRQ&$%3V\PSWRPV,Q
RUGHUIRUWKHVXEMHFWWREHFRQVLGHUHGD&OLQLFDO6XFFHVVWKHVXEMHFWPD\QRWPHHWDQ\FULWHULD
IRU&OLQLFDO)DLOXUHRU,QGHWHUPLQDWH(DUO\&OLQLFDO5HVSRQVH
&OLQLFDO)DLOXUHGHILQHGDVPHHWLQJDQ\RIWKHIROORZLQJFULWHULD
x 7KHUHLVQRLPSURYHPHQWE\DWOHDVWOHYHOLHVHYHUHWRPRGHUDWHPRGHUDWHWRPLOGPLOGWR
DEVHQWFRPSDUHGWR6FUHHQLQJLQ&$%3V\PSWRPV
x $Q\RIWKH&$%3V\PSWRPVLVZRUVHE\DWOHDVWOHYHOFRPSDUHGWR6FUHHQLQJ
x 7KHVXEMHFWUHTXLUHVDOWHUQDWLYHUHVFXHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWRWKH(DUO\
&OLQLFDO5HVSRQVHDVVHVVPHQWUHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZ
V\PSWRPVDWWULEXWDEOHWR&$%3RUEGHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI&$%3
HJHPS\HPDOXQJDEVFHVV
x 7KHVXEMHFWLVUHFHLYLQJDQWLEDFWHULDOWKHUDS\WKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHU
VWXG\IRUDGLIIHUHQWLQIHFWLRQIURPWKHXQGHUVWXG\
x 'LVFRQWLQXHGVWXG\WKHUDS\GXHWRDQ$(DQGUHFHLYHGDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU
&$%3SULRUWRWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW
x 'HDWKSULRUWRWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
x 6XEMHFWZDVQRWVHHQIRUWKHHYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWRIROORZ
XSRWKHUUHDVRQVSHFLI\
x 2WKHUVSHFLILHGUHDVRQ



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 &OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW(27

(27DVVHVVPHQWVVKRXOGEHSHUIRUPHGRQWKHFDOHQGDUGD\RIRUZLWKLQGD\VIROORZLQJWKHODVW
GRVHRIDQ\WHVWDUWLFOH,IDVXEMHFWZLWKGUDZVSUHPDWXUHO\RUWHUPLQDWHVSDUWLFLSDWLRQLQWKH
VWXG\SULRUWRFRPSOHWLRQRIWKHSODQQHGDQWLELRWLFWKHUDS\WKH(27YLVLWVKRXOGEHFRQGXFWHG
7KHLQYHVWLJDWRUZLOOGHWHUPLQHZKHWKHURUQRWWKHVXEMHFWPHHWVWKHFULWHULDRIRIWKHIROORZLQJ
FOLQLFDORXWFRPHV
&OLQLFDO6XFFHVVWKHVXEMHFWLVDOLYHDQGWKHLQIHFWLRQLVVXIILFLHQWO\UHVROYHGVXFKWKDWIXUWKHU
DQWLEDFWHULDOWKHUDS\LVQRWQHHGHG7KHVHVXEMHFWVPD\KDYHVRPHUHVLGXDOILQGLQJVUHODWHGWR
LQIHFWLRQLHFRXJKUHTXLULQJDQFLOODU\LHQRQDQWLELRWLFWUHDWPHQWHJH[SHFWRUDQW,QRUGHU
IRUWKHVXEMHFWWREHFRQVLGHUHGD&OLQLFDO6XFFHVVDW(27WKHVXEMHFWPD\QRWPHHWDQ\FULWHULD
IRU&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHDW(27
&OLQLFDO)DLOXUHWKHVXEMHFWUHTXLUHVDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWR(27
UHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVRI&$%3RUEGHYHORSPHQW
RILQIHFWLRXVFRPSOLFDWLRQVRI&$%3HJHPS\HPDOXQJDEVFHVVRUFVXEMHFWGHYHORSHGDQ
$(WKDWUHTXLUHGGLVFRQWLQXDWLRQRIVWXG\WKHUDS\2WKHUUHDVRQVIRU&OLQLFDO)DLOXUHDUH
x 6XEMHFWLVUHFHLYLQJDQWLEDFWHULDOWKHUDS\WKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHUVWXG\
IRUDGLIIHUHQWLQIHFWLRQIURPWKHXQGHUVWXG\
x 'HDWKSULRUWR(27YLVLW

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
x 6XEMHFWVZHUHQRWVHHQIRU(27HYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUUHDVRQVSHFLI\
x 2WKHUVSHFLILHGUHDVRQ

 &OLQLFDO(YDOXDWLRQRIWKH,QIHFWLRQ8QGHU6WXG\DW37(

7KH37(DVVHVVPHQWLVWREHSHUIRUPHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\7KH
LQYHVWLJDWRUZLOOGHWHUPLQHZKHWKHURUQRWWKHVXEMHFWPHHWVWKHFULWHULDRIRIWKHIROORZLQJ
FOLQLFDORXWFRPHV
&OLQLFDO6XFFHVVVXUYLYDODIWHUFRPSOHWLRQRIDWHVWDUWLFOHUHJLPHQZLWKRXWUHFHLYLQJDQ\
V\VWHPLFDQWLEDFWHULDOWKHUDS\RWKHUWKDQWHVWDUWLFOHUHVROXWLRQRIVLJQVDQGV\PSWRPVRIWKH
LQIHFWLRQSUHVHQWDW6FUHHQLQJZLWKQRQHZV\PSWRPVRUFRPSOLFDWLRQVDWWULEXWDEOHWR&$%3DQG
QRQHHGIRUIXUWKHUDQWLEDFWHULDOWKHUDS\
&OLQLFDO)DLOXUHWKHVXEMHFWUHTXLUHVDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWR37(
UHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVRI&$%3RUEGHYHORSPHQW
RILQIHFWLRXVFRPSOLFDWLRQVRI&$%3HJHPS\HPDOXQJDEVFHVV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x 7KHVXEMHFWLVUHFHLYLQJDQWLELRWLFVWKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHUVWXG\IRUD
GLIIHUHQWLQIHFWLRQIURPWKHXQGHUVWXG\
x 'HDWKSULRUWR37(

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
x 6XEMHFWVZHUHQRWVHHQIRU37(HYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUVSHFLI\
x 2WKHUVSHFLILHGUHDVRQ

 27+(5$66(660(176
 5HVRXUFH8WLOL]DWLRQ
7KHQXPEHURIKRVSLWDOGD\VIRUDOOKRVSLWDODGPLVVLRQVGXULQJWKHVWXG\SHULRGZLOOEH
FDOFXODWHG+RVSLWDOGD\VZLOOEHVSHFLILHGIURPGDWHRIDGPLVVLRQWRGDWHRIGLVFKDUJH
 3+$50$&2.,1(7,&3/$60$6$03/(6)2520$'$&<&/,1(
&21&(175$7,21
 6HOHFWLRQRI6LWHVIRU3.6WXGLHV
3KDUPDFRNLQHWLFGDWDZLOOEHDQDO\]HGXVLQJDSRSXODWLRQ3.PRGHO,QRUGHUWRPD[LPL]HWKH
QXPEHURIVXEMHFWVZKRSDUWLFLSDWHVRWKDWWKLVDQDO\VLVLVRSWLPDOFULWHULRQIRUVHOHFWLRQRI
VLWHVLQWKLVVWXG\ZLOOEHWKHVLWH¶VDELOLW\WRSDUWLFLSDWHLQWKH3.SRUWLRQRIWKHVWXG\7RDVVXUH
WKHTXDOLW\DQGDFFXUDF\RIWKH3.VDPSOHVVDPSOHVZLOOEHREWDLQHGRQO\IURPVXEMHFWV
SDUWLFLSDWLQJDWDFHQWHUWKDWKDVWKHDSSURSULDWHIDFLOLWLHVDQGFDSDELOLWLHVDQGKDVEHHQ
VSHFLILFDOO\WUDLQHGE\WKHVSRQVRU
 &ROOHFWLRQRI3.6DPSOHV
3.VDPSOHVZLOOEHFROOHFWHGXVLQJDVSDUVHVDPSOLQJPHWKRGIRUWKHSRSXODWLRQ3.PRGHO7KH
QXPEHURIVDPSOHVDQGFROOHFWLRQVFKHGXOHZLOOYDU\IRULQGLYLGXDOVXEMHFWV7KHVSRQVRUZLOO
QRWLI\WKHVLWHRIWKH3.VDPSOHFROOHFWLRQVFKHGXOHIRUWKHLQGLYLGXDOVXEMHFW8SWRVDPSOHV
ZLOOEHFROOHFWHGSHUVXEMHFWEHWZHHQVWXG\'D\VWRVHH678'<)/2:&+$57
7KHVSRQVRUZLOOSURYLGHKHSDULQWXEHVIRUWKHFROOHFWLRQRI3.EORRGVDPSOHVDQGZLOOSURYLGH
IUHH]HUWXEHVIRUVWRULQJWKHSODVPD%ORRGZLOOEHFROOHFWHGHLWKHUE\IUHVKYHQLSXQFWXUHRUYLDD
FDQQXODXVHG62/(<IRUWKDWSXUSRVHEORRGIRU3.VDPSOHVPXVW127EHGUDZQWKURXJKWKH
VDPHLYDFFHVVXVHGIRUDGPLQLVWUDWLRQRIWHVWDUWLFOH
7KHGDWHVDQGWLPHVIRUDOOGRVHVRIWHVWDUWLFOHDQG3.VDPSOHFROOHFWLRQVZLOOEHUHFRUGHG)RU
LQWUDYHQRXVO\DGPLQLVWHUHGGRVHVRIWHVWDUWLFOHWKHVWDUWDQGVWRSWLPHVIRUHDFKLQIXVLRQVKDOOEH
UHFRUGHG7KHLGHQWLILFDWLRQRIWKHVXEMHFWDQGWKHWLPHRIWKHVDPSOHFROOHFWLRQWRWKHQHDUHVW


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

PLQXWHVKRXOGEHLPPHGLDWHO\UHFRUGHGRQWKHWXEH7KHWXEHZLOOEHFHQWULIXJHGDWîJIRU
PLQXWHVDQGWKHVHSDUDWHGSODVPDWUDQVIHUUHGLQHTXDODOLTXRWVLQWRSUHODEHOHGWXEHVDQG
WKHWXEHVIUR]HQDW&ZLWKLQPLQXWHVRIFROOHFWLRQ7KHWLPHWKHVDPSOHLVIUR]HQVKRXOG
EHUHFRUGHGWRWKHQHDUHVWPLQXWH

 6WRULQJDQG6KLSSLQJRI3.6DPSOHV
$IWHUDOORIWKH3.VDPSOHVIURPDVLQJOHVXEMHFWKDYHEHHQFROOHFWHGDQGIUR]HQDW&
VDPSOHIURPHDFKWLPHSRLQWFDQEHEDWFKHGWRJHWKHUZLWKFRUUHVSRQGLQJFRPSOHWHVDPSOHVHWV
IURPRWKHUVXEMHFWVDQGEHFDUHIXOO\SDFNDJHGDQGVKLSSHGIUR]HQDW&WRWKH&HQWUDO
/DERUDWRU\6DPSOHVDUHWREHVKLSSHGZLWKVXIILFLHQWGU\LFHWRUHPDLQIUR]HQGXULQJWUDQVLWXS
WRDSRVVLEOHGD\SHULRG7KH&HQWUDO/DERUDWRU\ZLOOSURFHVVWKHVHVDPSOHVDQGIRUZDUG
WKHPDW&WRWKH$QDO\WLFDO/DERUDWRU\GHVLJQDWHGE\WKHVSRQVRU)RUHDFKVXEMHFWDQGWLPH
SRLQWWKHUHPDLQLQJVWRUHGDOLTXRWVZLOOEHUHWDLQHGRQVLWHDW±&XQWLOUHOHDVHGRUUHTXHVWHG
E\WKHVSRQVRU
 $QDO\VLVRI3.6DPSOHV
7KH$QDO\WLFDO/DERUDWRU\ZLOODVVD\WKHVDPSOHVIRURPDGDF\FOLQHXVLQJDVSHFLILFVHQVLWLYH
DQGYDOLGDWHG/LTXLG&KURPDWRJUDSK\7DQGHP0DVV6SHFWURPHWU\/&0606PHWKRG
DSSURYHGE\WKHVSRQVRU
 27+(5%,20$5.(56
1RQH
 6$)(7<021,725,1*
 $GYHUVH(YHQWV
$Q$(LVDQ\XQWRZDUGXQGHVLUHGRUXQSODQQHGHYHQWLQWKHIRUPRIVLJQVV\PSWRPVGLVHDVH
RUODERUDWRU\RUSK\VLRORJLFREVHUYDWLRQVRFFXUULQJLQDSHUVRQJLYHQDWHVWDUWLFOHRULQDFOLQLFDO
VWXG\7KHHYHQWGRHVQRWQHHGWREHFDXVDOO\UHODWHGWRWKHWHVWDUWLFOHRUFOLQLFDOVWXG\$Q$(
LQFOXGHVEXWLVQRWOLPLWHGWRWKHIROORZLQJ
x $Q\FOLQLFDOO\VLJQLILFDQWZRUVHQLQJRIDSUHH[LVWLQJFRQGLWLRQ
x $Q$(RFFXUULQJIURPRYHUGRVHRIDWHVWDUWLFOHZKHWKHUDFFLGHQWDORULQWHQWLRQDO2YHUGRVH
LVDGRVHJUHDWHUWKDQWKDWVSHFLILHGLQWKHSURWRFRO
x $Q$(RFFXUULQJIURPDEXVHHJXVHIRUQRQFOLQLFDOUHDVRQVRIDWHVWDUWLFOH
x $Q$(WKDWKDVEHHQDVVRFLDWHGZLWKWKHGLVFRQWLQXDWLRQRIWKHXVHRIDWHVWDUWLFOH



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

$6$(LVDQ$(WKDW
x 5HVXOWVLQGHDWK
x ,VOLIHWKUHDWHQLQJVHHEHORZ
x 5HTXLUHVKRVSLWDOL]DWLRQRUSURORQJDWLRQRIDQH[LVWLQJKRVSLWDOL]DWLRQVHHEHORZ
x 5HVXOWVLQDSHUVLVWHQWRUVLJQLILFDQWGLVDELOLW\RULQFDSDFLW\VHHEHORZ
x 5HVXOWVLQFDQFHU
x 5HVXOWVLQDFRQJHQLWDODQRPDO\RUELUWKGHIHFW
x $GGLWLRQDOO\LPSRUWDQWPHGLFDOHYHQWVWKDWPD\QRWUHVXOWLQGHDWKEHOLIHWKUHDWHQLQJRU
UHTXLUHKRVSLWDOL]DWLRQPD\EHFRQVLGHUHG6$(VZKHQEDVHGRQDSSURSULDWHPHGLFDO
MXGJPHQWWKH\PD\MHRSDUGL]HWKHVXEMHFWDQGPD\UHTXLUHPHGLFDORUVXUJLFDOLQWHUYHQWLRQ
WRSUHYHQWRIWKHRXWFRPHVOLVWHGLQWKLVGHILQLWLRQ([DPSOHVRIVXFKHYHQWVLQFOXGH
DOOHUJLFEURQFKRVSDVPUHTXLULQJLQWHQVLYHWUHDWPHQWLQDQHPHUJHQF\URRPRUDWKRPHEORRG
G\VFUDVLDVRUFRQYXOVLRQVWKDWGRQRWUHVXOWLQKRVSLWDOL]DWLRQRUGHYHORSPHQWRIGUXJ
GHSHQGHQF\RUGUXJDEXVH

/LIHWKUHDWHQLQJUHIHUVWRLPPHGLDWHULVNRIGHDWKDVWKHHYHQWRFFXUUHGSHUWKHUHSRUWHU$
OLIHWKUHDWHQLQJH[SHULHQFHGRHVQRWLQFOXGHDQH[SHULHQFHKDGLWRFFXUUHGLQDPRUHVHYHUH
IRUPPLJKWKDYHFDXVHGGHDWKEXWDVLWDFWXDOO\RFFXUUHGGLGQRWFUHDWHDQLPPHGLDWHULVNRI
GHDWK)RUH[DPSOHKHSDWLWLVWKDWUHVROYHGZLWKRXWHYLGHQFHRIKHSDWLFIDLOXUHZRXOGQRWEH
FRQVLGHUHGOLIHWKUHDWHQLQJHYHQWKRXJKKHSDWLWLVRIDPRUHVHYHUHQDWXUHFDQEHIDWDO
6LPLODUO\DQDOOHUJLFUHDFWLRQUHVXOWLQJLQDQJLRHGHPDRIWKHIDFHZRXOGQRWEHOLIHWKUHDWHQLQJ
HYHQWKRXJKDQJLRHGHPDRIWKHODU\Q[DOOHUJLFEURQFKRVSDVPRUDQDSK\OD[LVFDQEHIDWDO
+RVSLWDOL]DWLRQLVRIILFLDODGPLVVLRQWRDKRVSLWDO+RVSLWDOL]DWLRQRUSURORQJDWLRQRID
KRVSLWDOL]DWLRQFRQVWLWXWHVFULWHULDIRUDQ$(WREHVHULRXVKRZHYHULWLVQRWLQLWVHOIFRQVLGHUHG
DQ6$(,QDEVHQFHRIDQ$(DKRVSLWDOL]DWLRQRUSURORQJDWLRQRIDKRVSLWDOL]DWLRQVKRXOGQRW
EHUHSRUWHGDVDQ6$(E\WKHSDUWLFLSDWLQJLQYHVWLJDWRU7KLVLVWKHFDVHLQWKHIROORZLQJ
VLWXDWLRQV
x 7KHKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQLVQHHGHGIRUDSURFHGXUHUHTXLUHGE\
WKHSURWRFRO
x 7KHKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQLVSDUWRIDURXWLQHSURFHGXUHIROORZHG
E\WKHFHQWHUHJVWHQWUHPRYDODIWHUVXUJHU\7KLVVKRXOGEHUHFRUGHGLQWKHVWXG\ILOH

,QDGGLWLRQDKRVSLWDOL]DWLRQIRUDSUHH[LVWLQJFRQGLWLRQWKDWKDVQRWZRUVHQHGGRHVQRWFRQVWLWXWH
DQ6$(
'LVDELOLW\LVGHILQHGDVDVXEVWDQWLDOGLVUXSWLRQLQDSHUVRQ¶VDELOLW\WRFRQGXFWQRUPDOOLIH
IXQFWLRQV
,IWKHUHLVDQ\GRXEWDERXWZKHWKHUWKHLQIRUPDWLRQFRQVWLWXWHVDQ6$(WKHLQIRUPDWLRQLVWUHDWHG
DVDQ6$(


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

$SURWRFROUHODWHG$(LVDQ$(RFFXUULQJGXULQJDFOLQLFDOVWXG\WKDWLVQRWUHODWHGWRWKHWHVW
DUWLFOHEXWLVFRQVLGHUHGE\WKHLQYHVWLJDWRURUWKH0HGLFDO0RQLWRURUGHVLJQHHWREHUHODWHGWR
WKHUHVHDUFKFRQGLWLRQVLHUHODWHGWRWKHIDFWWKDWDVXEMHFWLVSDUWLFLSDWLQJLQWKHVWXG\)RU
H[DPSOHDSURWRFROUHODWHG$(PD\EHDQXQWRZDUGHYHQWUHODWHGWRDPHGLFDOSURFHGXUH
UHTXLUHGE\WKHSURWRFRO
2WKHU5HSRUWDEOH,QIRUPDWLRQ&HUWDLQLQIRUPDWLRQDOWKRXJKQRWFRQVLGHUHGDQ6$(PXVWEH
UHFRUGHGUHSRUWHGDQGIROORZHGXSDVLQGLFDWHGIRUDQ6$(7KLVLQFOXGHV
x 3UHJQDQF\H[SRVXUHWRDWHVWDUWLFOH,IDSUHJQDQF\LVFRQILUPHGXVHRIWKHWHVWDUWLFOHPXVW
EHGLVFRQWLQXHGLPPHGLDWHO\,QIRUPDWLRQDERXWSUHJQDQF\H[SRVXUHLQFOXGHVWKHHQWLUH
FRXUVHRISUHJQDQF\DQGGHOLYHU\DQGSHULQDWDODQGQHRQDWDORXWFRPHVHYHQLIWKHUHDUHQR
DEQRUPDOILQGLQJV%RWKPDWHUQDODQGSDWHUQDOH[SRVXUHVDUHFRQVLGHUHGRWKHUUHSRUWDEOH
LQIRUPDWLRQ)RUH[SRVXUHLQYROYLQJWKHIHPDOHSDUWQHURIDPDOHVXEMHFWWKHQHFHVVDU\
LQIRUPDWLRQPXVWEHFROOHFWHGIURPWKHVXEMHFWZKLOHUHVSHFWLQJWKHFRQILGHQWLDOLW\RIWKH
SDUWQHU
x /DFWDWLRQH[SRVXUHWRDWHVWDUWLFOHZLWKRUZLWKRXWDQ$(
x 2YHUGRVHRIDWHVWDUWLFOHDVVSHFLILHGLQWKLVSURWRFROZLWKRUZLWKRXWDQ$(
x ,QDGYHUWHQWRUDFFLGHQWDOH[SRVXUHWRDWHVWDUWLFOHZLWKRUZLWKRXWDQ$(

 6HULRXV$GYHUVH(YHQW5HSRUWLQJ
$OO6$(VDQGIROORZXSLQIRUPDWLRQPXVWEHUHSRUWHGZLWKLQEXVLQHVVGD\RUKRXUVDV
UHTXLUHGE\ORFDOUHJXODWLRQVE\ID[LQJDFRPSOHWHG6$(5HSRUW)RUPWRWKHID[QXPEHUEHORZ
RUHPDLOLQJDFRPSOHWHG6$(5HSRUW)RUPWRWKHHPDLODGGUHVVEHORZ
6HULRXV$GYHUVH(YHQW6$(FRQWDFWLQIRUPDWLRQ
(0DLO

)D[


 2YHUGRVH
$Q\DGPLQLVWUDWLRQRIRPDGDF\FOLQHRIJUHDWHUWKDQPJLYRUSRZLWKLQDKRXUSHULRG
ZLOOEHDQRYHUGRVHUHJDUGOHVVRIZKHWKHUWKHRYHUGRVHLVLQWHQWLRQDORUDFFLGHQWDOLWLVD
UHSRUWDEOHHYHQWDQGWKHVSRQVRUPXVWEHQRWLILHGZLWKLQEXVLQHVVGD\$Q\DGPLQLVWUDWLRQRI
PR[LIOR[DFLQRIJUHDWHUWKDQJUDPVLQDKRXUSHULRGZLOOEHDQRYHUGRVHUHJDUGOHVVRI
ZKHWKHUWKHRYHUGRVHLVLQWHQWLRQDORUDFFLGHQWDOLWLVDUHSRUWDEOHHYHQWDQGWKHVSRQVRUPXVWEH
QRWLILHGZLWKLQKRXUV,QWKHHYHQWWKDWDVWXG\VXEMHFWWDNHVDQRYHUGRVHRIWHVWDUWLFOHWKH
LQYHVWLJDWRUPD\REWDLQWKHVXEMHFW¶VWUHDWPHQWDVVLJQPHQWE\FRQWDFWLQJWKH,[567KH,[56
ZLOODOVRSURYLGHDFRQILUPDWLRQUHSRUWRIWKHGUXJDVVLJQPHQWWRVLWHSHUVRQQHO7KHVLWH
SHUVRQQHOZLOOUHWDLQWKLVFRQILUPDWLRQUHSRUW
7KHSK\VLFLDQPDQDJLQJWKHRYHUGRVHPD\RUGHUDQ\WHVWKHVKHWKLQNVLVQHFHVVDU\WRPDQDJH
WKHVXEMHFWSURSHUO\


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 0HGLFDWLRQ(UURUV
0HGLFDWLRQHUURUVDUHWKHUHVXOWRIDGPLQLVWUDWLRQRUFRQVXPSWLRQRIWKHZURQJSURGXFWE\WKH
ZURQJVXEMHFWDWWKHZURQJWLPHDQGRUE\WKHZURQJDGPLQLVWUDWLRQURXWHGXHWRKXPDQHUURU
0HGLFDWLRQHUURUVLQFOXGHEXWDUHQRWOLPLWHGWRWKHIROORZLQJ
x 7KHDGPLQLVWUDWLRQDQGRUFRQVXPSWLRQRIWHVWDUWLFOHWKDWKDVQRWEHHQDVVLJQHGWRWKH
VXEMHFW
x $GPLQLVWUDWLRQRIH[SLUHGWHVWDUWLFOH

$OO$(VDQG6$(VPXVWEHKDQGOHGDVVSHFLILHGLQWKLVSURWRFROZKHWKHURUQRWWKH\DUH
DVVRFLDWHGZLWKDPHGLFDWLRQHUURU$PHGLFDWLRQHUURUDVVRFLDWHGZLWKDQ6$(LQFOXGLQJ
RYHUGRVHLQDGYHUWHQWH[SRVXUHDQGRUDFFLGHQWDOH[SRVXUHZLOOEHUHSRUWHGZLWKWKH6$(RQWKH
6$(5HSRUW)RUP$OORWKHUPHGLFDWLRQHUURUVZLOOEHUHSRUWHGE\ID[LQJRUHPDLOLQJWKH&OLQLFDO
7HVW$UWLFOH(UURU,QFLGHQW5HSRUW)RUPDVLQGLFDWHGLQWKH(PHUJHQF\&RQWDFWV6HH6HFWLRQ
 5HFRUGLQJDQG5HSRUWLQJ
$VXEMHFW¶V$(VDQG6$(VZLOOEHUHFRUGHGDQGUHSRUWHGIURPWKHVLJQLQJRIWKH,&)WRWKHWLPH
RIWKH)LQDO)ROORZXSDVVHVVPHQW7KHLQYHVWLJDWRUPXVWLQVWUXFWWKHVXEMHFWWRUHSRUW$(VDQG
6$(VGXULQJWKLVWLPHSHULRG5HSRUWVRIGHDWKZLWKLQGD\VDIWHUWKHODVWFRQWDFWZLWKWKH
VXEMHFWZLOOEHUHSRUWHGWRWKHVSRQVRUDQGDGGLWLRQDOLQIRUPDWLRQUHODWLYHWRWKHFDXVHRIGHDWK
ZLOOEHVRXJKWDQGGRFXPHQWHG
$OO$(VDQG6$(VPXVWEHUHFRUGHGRQVRXUFHGRFXPHQWV$OO$(VDQG6$(VIRUVXEMHFWVZKR
UHFHLYHDWUHDWPHQWDVVLJQPHQWZLOOEHUHFRUGHGLQWKHH&5)V
7KHLQYHVWLJDWRUPXVWIROORZXSDVPHGLFDOO\QHFHVVDU\RQDOO$(VDQG6$(VXQWLOWKHHYHQWV
KDYHVXEVLGHGWKHFRQGLWLRQKDVUHWXUQHGWR%DVHOLQHRULQFDVHRISHUPDQHQWLPSDLUPHQWXQWLO
WKHFRQGLWLRQVWDELOL]HV
$(VVKRXOGEHEDVHGRQWKHVLJQVRUV\PSWRPVGHWHFWHGGXULQJWKHSK\VLFDOH[DPLQDWLRQDQGRQ
FOLQLFDOHYDOXDWLRQRIWKHVXEMHFW,QDGGLWLRQWRWKHLQIRUPDWLRQREWDLQHGIURPWKRVHVRXUFHVWKH
VXEMHFWVKRXOGEHDVNHGWKHIROORZLQJQRQVSHFLILFTXHVWLRQ+RZKDYH\RXEHHQIHHOLQJVLQFH
\RXUODVWYLVLW"6LJQVDQGV\PSWRPVVKRXOGEHUHFRUGHGXVLQJVWDQGDUGPHGLFDOWHUPLQRORJ\
$Q\XQDQWLFLSDWHGULVNVWRWKHVXEMHFWVPXVWEHUHSRUWHGSURPSWO\WRWKH,5%,(&5(%
 3UHJQDQFLHV
7RHQVXUHVXEMHFWVDIHW\HDFKSUHJQDQF\LQDVXEMHFWRQWHVWDUWLFOHPXVWEHUHSRUWHGWRWKH
VSRQVRUZLWKLQEXVLQHVVGD\RIOHDUQLQJRILWVRFFXUUHQFH7HVWDUWLFOHVKRXOGEHGLVFRQWLQXHG
LPPHGLDWHO\DQGWKHSUHJQDQF\VKRXOGEHIROORZHGXSWRGHWHUPLQHRXWFRPHLQFOXGLQJ


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

VSRQWDQHRXVRUYROXQWDU\WHUPLQDWLRQGHWDLOVRIWKHELUWKDQGWKHSUHVHQFHRUDEVHQFHRIDQ\
ELUWKGHIHFWVFRQJHQLWDODEQRUPDOLWLHVRUPDWHUQDODQGRUQHZERUQFRPSOLFDWLRQV
3UHJQDQF\VKRXOGEHUHFRUGHGRQD&OLQLFDO7ULDO3UHJQDQF\)RUPDQGUHSRUWHGE\WKH
LQYHVWLJDWRUWRWKHVSRQVRU3UHJQDQF\IROORZXSVKRXOGEHUHFRUGHGRQWKHVDPHIRUPDQG
VKRXOGLQFOXGHDQDVVHVVPHQWRIWKHSRVVLEOHUHODWLRQVKLSWRWKHWHVWDUWLFOHRIDQ\SUHJQDQF\
RXWFRPH$Q\6$(H[SHULHQFHGGXULQJSUHJQDQF\PXVWEHUHSRUWHGRQWKH6$(5HSRUW)RUP
 'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH
$'DWDDQG6DIHW\0RQLWRULQJ&RPPLWWHH'60&LQGHSHQGHQWRIWKHVSRQVRUZLOOSURYLGH
RQJRLQJPRQLWRULQJRIVDIHW\GDWDRQDQDSSUR[LPDWHO\TXDUWHUO\EDVLV7KH'60&ZLOOUHYLHZ
WKHGDWDDVWUHDWPHQW$DQGWUHDWPHQW%7KHFKDUWHUIRUWKH'60&ZLOOFOHDUO\RXWOLQHDOOUROHV
UHVSRQVLELOLWLHVDQGGHFLVLRQPDNLQJFULWHULD7KLVZLOOLQFOXGHDGHWDLOHGGHVFULSWLRQRIWKH
PDQQHULQZKLFKVHFXULW\DQGEOLQGLQJRIWKHGDWDIRUWKHVSRQVRUZLOOEHPDLQWDLQHGLQDGGLWLRQ
WRWKHSURFHGXUHVWKDWHQVXUHWKHLQGHSHQGHQFHDQGREMHFWLYLW\RIWKH'60&¶VDFWLYLWLHV$VWKH
'60&ZLOOEHUHYLHZLQJVDIHW\GDWDIRUWKLVVWXG\LWPD\UHTXLUHUHSRUWVLQGLFDWLQJWUHDWPHQW
DVVLJQPHQWWRDVVLVWLQFOLQLFDOLQWHUSUHWDWLRQRILWVILQGLQJV7KHUHIRUHWKH'60&FKDUWHUZLOO
SURYLGHDGHWDLOHGH[SODQDWLRQRIWKHSURFHVVHVE\ZKLFKWKH'60&ZLOOREWDLQWKHLQIRUPDWLRQ
QHFHVVDU\IRULWVRSHUDWLRQWKDWZLOOQRWSUHMXGLFHRUFUHDWHDQ\SRWHQWLDOVRXUFHRIELDVLQWKH
FRQGXFWRIWKHVWXG\
 '$7$$1$/<6,6
$OODQDO\VHVRIGDWDIRUWKLVVWXG\ZLOOFRPSO\ZLWK,QWHUQDWLRQDO&RQIHUHQFHRQ+DUPRQLVDWLRQ
RI7HFKQLFDO5HTXLUHPHQWVIRU5HJLVWUDWLRQRI3KDUPDFHXWLFDOVIRU+XPDQ8VH,&+(DQGWKH
VSRQVRU¶VJXLGDQFHGRFXPHQWVDQGVWDQGDUGV6WDWLVWLFDODQDO\VHVZLOOEHSHUIRUPHGXVLQJ
6WDWLVWLFDO$QDO\VLV6RIWZDUH6$6
$6$3LQFRUSRUDWLQJWKHVHFWLRQVEHORZDQGZLWKPRFNWDEOHILJXUHDQGOLVWLQJ7)/VKHOOVZLOO
EHSUHSDUHGSULRUWRWKHVWDUWRIWKHVWXG\DQGDSSURYHGDQGILQDOL]HGE\WKHVSRQVRUSULRU
GDWDEDVHORFN7KLVSODQZLOOGHILQHSRSXODWLRQVIRUDQDO\VLVRXWOLQHDOOGDWDKDQGOLQJ
FRQYHQWLRQVDQGVSHFLI\VWDWLVWLFDOPHWKRGVWREHXVHGIRUDQDO\VLVRIVDIHW\DQGHIILFDF\$VD
FRQVHTXHQFHRIGLIIHULQJUHJXODWRU\UHTXLUHPHQWVIRUWKHFKRLFHRIWKHSULPDU\HIILFDF\RXWFRPH
DQGVWDWLVWLFDODQDO\VHVVHSDUDWH6$3VZLOOEHSUHSDUHG)'$DQG(0$7KHVHFWLRQVEHORZ
LQGLFDWHWKHRYHUDOOVWUXFWXUHDQGDSSURDFKRIWKHDQDO\VHV
,QIHUHQWLDOVWDWLVWLFDODQDO\VHVRIWKHSULPDU\DQGVHFRQGDU\RXWFRPHVZLOOEHFRQGXFWHGDV
RXWOLQHGEHORZ'HVFULSWLYHVWDWLVWLFVLQFOXGLQJWKHQXPEHUVDQGSHUFHQWDJHVIRUFDWHJRULFDO
YDULDEOHVDQGWKHQXPEHUVPHDQVVWDQGDUGGHYLDWLRQV6'PHGLDQVPLQLPXPVDQG
PD[LPXPVIRUFRQWLQXRXVYDULDEOHVZLOOEHSURYLGHG$OOFRPSDULVRQVZLOOEHIRURPDGDF\FOLQH
YHUVXVPR[LIOR[DFLQ([SORUDWRU\DQDO\VHVPD\DOVREHSHUIRUPHG/LVWLQJVRILQGLYLGXDO
VXEMHFW¶VGDWDZLOOEHSURGXFHG


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 $QDO\VLV3RSXODWLRQV
$QXPEHURIVXEMHFWSRSXODWLRQVKDYHEHHQGHILQHGIRUWKHYDULRXVDQDO\VHVRIHIILFDF\DQG
VDIHW\DVIROORZV
x 7KH,77SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWV
x 7KHPLFURELRORJLFDOLQWHQWWRWUHDWPLFUR,77SRSXODWLRQZLOOFRQVLVWRIVXEMHFWVLQWKH,77
SRSXODWLRQZKRKDYHDWOHDVWFDXVDWLYHSDWKRJHQLGHQWLILHGDW6FUHHQLQJIURPFXOWXUHRID
UHVSLUDWRU\VSHFLPHQHJUHVSLUDWRU\IOXLGREWDLQHGE\EURQFKRDOYHRODUODYDJHRU
EURQFKRVFRS\SOHXUDOIOXLGREWDLQHGE\WKRUDFHQWHVLVRUH[SHFWRUDWHGRULQGXFHGVSXWXP
PHHWLQJDGHTXDF\FULWHULDFXOWXUHRIEORRGRUIURPDFXOWXUHLQGHSHQGHQWPHWKRGHJ
SRVLWLYHXULQDU\DQWLJHQWHVWIRU6WUHSWRFRFFXVSQHXPRQLDHRU/HJLRQHOODSQHXPRSKLODRU
SRVLWLYHVHURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHRU&KODP\GRSKLOD
SQHXPRQLDH
x 7KH&(SRSXODWLRQZLOOFRQVLVWRIDOO,77VXEMHFWVZKRUHFHLYHGWHVWDUWLFOHKDYHDTXDOLI\LQJ
&$%3DQDVVHVVPHQWRIRXWFRPHDQGPHHWDOORWKHUHYDOXDELOLW\FULWHULDGHWDLOHGLQWKH
6$3
x 7KHPLFURELRORJLFDOO\HYDOXDEOH0(SRSXODWLRQZLOOLQFOXGHVXEMHFWVLQWKH&(SRSXODWLRQ
ZKRKDYHDWOHDVWFDXVDWLYHSDWKRJHQDW6FUHHQLQJ
x 7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWVZKRUHFHLYHWHVWDUWLFOH

 6XEMHFW'HPRJUDSKLFVDQG2WKHU%DVHOLQH&KDUDFWHULVWLFV
'HVFULSWLYHVWDWLVWLFVE\WUHDWPHQWDUPZLOOEHSURYLGHGIRUWKHIROORZLQJ
x 6XEMHFWGLVSRVLWLRQ
x FRPSOHWHGWHVWDUWLFOH
x GLVFRQWLQXHGWHVWDUWLFOHE\UHDVRQIRUGLVFRQWLQXDWLRQ
x FRPSOHWHGVWXG\
x GLVFRQWLQXHGVWXG\E\UHDVRQIRUGLVFRQWLQXDWLRQ
x 3URWRFROGHYLDWLRQV
x &$%3EDFNJURXQGLQIRUPDWLRQ
x VXEMHFWGHPRJUDSKLFVDJH\HDUVJHQGHUUDFHKHLJKWFPZHLJKWNJ%RG\0DVV
,QGH[%0,NJP
x 32575LVN&ODVV
x 0HGLFDOKLVWRULHVDQGFRQWLQXLQJPHGLFDOFRQGLWLRQV

%DVHOLQHGHPRJUDSKLFDQGPHGLFDOYDULDEOHVZLOOEHDQDO\]HGXVLQJDVLGHG)LVKHU¶VH[DFWWHVW
IRUFDWHJRULFDOYDULDEOHVRUDVLGHG:LOFR[RQ5DQN6XPWHVWIRURUGLQDODQGFRQWLQXRXV
YDULDEOHV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 7UHDWPHQWV7HVW$UWLFOH5HVFXH0HGLFDWLRQ2WKHU&RQFRPLWDQW7KHUDSLHV
&RPSOLDQFH
7KHQXPEHURILYLQIXVLRQVZLOOEHVXPPDUL]HG1XPEHURIGD\VRQLYEHIRUHVZLWFKWRSRZLOO
EHVXPPDUL]HG)RUWKHSRPHGLFDWLRQDFWXDOWDEOHWFRXQWWDNHQZLOOEHSUHVHQWHG
7KHWRWDOQXPEHURIGD\VRQVWXG\WKHUDS\ZLOODOVREHSURYLGHGE\WUHDWPHQWJURXS
3ULRUPHGLFDWLRQVFRQFRPLWDQWPHGLFDWLRQVVHSDUDWHO\IRUDQWLELRWLFVDQGQRQDQWLELRWLFVZLOOEH
VXPPDUL]HG)RUSULRUDQGFRQFRPLWDQWDQWLELRWLFVWKHUHDVRQIRUUHFHLSWZLOOEHSURYLGHG
 3ULPDU\(IILFDF\$QDO\VLV
)RUDOOHIILFDF\DQDO\VHVVXEMHFWGDWDZLOOEHDQDO\]HGLQWKHJURXSWRZKLFKWKHVXEMHFWZDV
UDQGRPL]HG)RUWKHSULPDU\DQDO\VHVIRUERWKWKH)'$DQG(0$VXEMHFWVZLOOEHDQDO\]HGLQ
WKHVWUDWXPWRZKLFKWKH\ZHUHUDQGRPL]HGVHH6HFWLRQ

(DUO\&OLQLFDO5HVSRQVH(IILFDF\9DULDEOH
7KH(DUO\&OLQLFDO5HVSRQVHFDQEH&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHGHILQHG
LQ6HFWLRQ
$Q,QGHWHUPLQDWH5HVSRQVHLVLQFOXGHGLQWKHGHQRPLQDWRUIRUWKHFDOFXODWLRQRIWKHSHUFHQWDJH
RIVXEMHFWVZLWKD&OLQLFDO6XFFHVVLQWKH,77SRSXODWLRQDQGWKXVLVHVVHQWLDOO\FRQVLGHUHGDVD
&OLQLFDO)DLOXUHIRUWKHSXUSRVHRIWKHSULPDU\DQDO\VLV

,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37((IILFDF\9DULDEOH
7KLVLVGHILQHGDVWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(YLVLWZLWK
RXWFRPHVRI&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHGHILQHGLQ6HFWLRQLQ
WKH,77SRSXODWLRQDQG&OLQLFDO6XFFHVVDQG&OLQLFDO)DLOXUHLQWKH&(SRSXODWLRQ$Q
,QGHWHUPLQDWH5HVSRQVHLVLQFOXGHGLQWKHGHQRPLQDWRUIRUWKHFDOFXODWLRQRIWKHSHUFHQWDJHRI
VXEMHFWVZLWKD&OLQLFDO6XFFHVVLQWKH,77SRSXODWLRQDQGWKXVLVHVVHQWLDOO\FRQVLGHUHGD
&OLQLFDO)DLOXUHIRUWKHSXUSRVHRIWKHSULPDU\DQDO\VLVIRUWKH(0$

6WDWLVWLFDO0RGHO+\SRWKHVLVDQG0HWKRGRI$QDO\VLV
7RGHPRQVWUDWHWKHHIILFDF\RIRPDGDF\FOLQHLVQRQLQIHULRUWRPR[LIOR[DFLQLQWKHWUHDWPHQWRI
DGXOWVZLWK&$%3WKHIROORZLQJK\SRWKHVLVZLOOEHHYDOXDWHGE\DQDO\VLVRIWKH&OLQLFDO6XFFHVV
UDWHV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7KHQXOOK\SRWKHVLVDQGDOWHUQDWHK\SRWKHVLVIRUWKH(DUO\&OLQLFDO5HVSRQVHHQGSRLQWZLOOEH
DVVHVVHGLQWKH,77SRSXODWLRQDVIROORZV
+Rș7±ș&¨
+DLș7±ș&!¨
:KHUHWKHFOLQLFDOVXFFHVVUDWHIRUWKHRPDGDF\FOLQHUHJLPHQLVș7DQGIRUPR[LIOR[DFLQLVș&
¨LVWKHQRQLQIHULRULW\1,PDUJLQDQGLV
6LPLODUQXOODQGDOWHUQDWLYHK\SRWKHVHVFDQEHVHWXSZLWK¨RIIRUWKH37(HQGSRLQW)RU
WKH(DUO\&OLQLFDO5HVSRQVH)'$HQGSRLQWDVLGHGFRQILGHQFHLQWHUYDO&,DSSURDFK
IRUWKHGLIIHUHQFHRIFOLQLFDOVXFFHVVUDWHVXVLQJWKHSRLQWHVWLPDWHRIWKHGLIIHUHQFH
RPDGDF\FOLQHUHVSRQVHSURSRUWLRQPLQXVPR[LIOR[DFLQUHVSRQVHSURSRUWLRQZLOOEHXVHGWRWHVW
IRUWKH1,RIWKHRPDGDF\FOLQHDUPFRPSDUHGWRWKHPR[LIOR[DFLQDUPLQWKH,77SRSXODWLRQ
7KH&,ZLOOEHFDOFXODWHGXVLQJWKHXQVWUDWLILHGPHWKRGSURSRVHGE\0LHWWLQHQDQG
1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ2PDGDF\FOLQHZLOOEHFRQVLGHUHGQRQLQIHULRUWR
PR[LIOR[DFLQLIWKHORZHUERXQGRIWKH&,LVJUHDWHUWKDQ
)RU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37((0$SULPDU\HIILFDF\DQDO\VHVLQ
ERWKWKH,77DQG&(SRSXODWLRQVDVLGHG&,DSSURDFKIRUWKHGLIIHUHQFHRIFOLQLFDO
VXFFHVVUDWHVXVLQJWKHSRLQWHVWLPDWHRIWKHGLIIHUHQFHRPDGDF\FOLQHUHVSRQVHSURSRUWLRQ
PLQXVPR[LIOR[DFLQUHVSRQVHSURSRUWLRQZLOOEHXVHGWRWHVWIRUWKH1,RIWKHRPDGDF\FOLQHDUP
FRPSDUHGWRWKHPR[LIOR[DFLQDUPLQWKRVHVXEMHFWVZLWKD32575LVN&ODVVRI,,,RUKLJKHU
7KH&,ZLOOEHFDOFXODWHGXVLQJWKHVWUDWLILHGIRUWKHUDQGRPL]DWLRQVWUDWLILFDWLRQIDFWRUV
PHWKRGSURSRVHGE\0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ2PDGDF\FOLQH
ZLOOEHFRQVLGHUHGQRQLQIHULRUWRPR[LIOR[DFLQLIWKHORZHUERXQGRIWKH&,LVJUHDWHUWKDQ
(DUO\&OLQLFDO5HVSRQVHDQG,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(ZLOOEH
WHVWHGVHSDUDWHO\DQGDUHQRWFRSULPDU\HQGSRLQWV7KHSUREDELOLW\IRUDSSURYLQJDQLQHIIHFWLYH
GUXJEDVHGRQ37(HIILFDF\LVUHJDUGOHVVRIWKHUHVXOWIRUWKH(DUO\&OLQLFDO5HVSRQVH
HQGSRLQWDQGYLFHYHUVD$QDGMXVWPHQWZRXOGRQO\EHUHTXLUHGLIZLQQLQJRQDWOHDVWHQGSRLQW
ZRXOGUHVXOWLQJOREDODSSURYDOZKLFKLVQRWWKHFDVHKHUH,QDGGLWLRQQRDOSKDDGMXVWPHQWLV
QHHGHGIRUWKHFRSULPDU\HIILFDF\HQGSRLQWVIRUWKH(0$,77DQG&(SRSXODWLRQVVLQFH1,
PXVWEHVKRZQLQERWKSRSXODWLRQVWRFRQFOXGH1,+HQFHWKHUHZLOOEHQRDGMXVWPHQWIRU
PXOWLSOHHQGSRLQWV

$GGLWLRQDO$QDO\VHVRIWKH3ULPDU\(IILFDF\2XWFRPHV
$GGLWLRQDODQGVHQVLWLYLW\DQDO\VHVRIWKHSULPDU\HIILFDF\RXWFRPHV(DUO\&OLQLFDO5HVSRQVH
DQG,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(ZLOOEHSHUIRUPHG$QDO\VHVIRUWKH
)'$SULPDU\RXWFRPHZLOOEHGHVFULEHGKHUHDQGLQPRUHGHWDLOLQWKH6$3$QDO\VHVIRUWKH
(0$SULPDU\RXWFRPHZLOOEHGHVFULEHGLQWKH6$3


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

,IWKHQXOOK\SRWKHVLVRILQIHULRULW\LVUHMHFWHGIRUWKH(DUO\&OLQLFDO5HVSRQVHLQWKH,77
SRSXODWLRQDQGWKHREVHUYHGVXFFHVVUHVSRQVHSURSRUWLRQIRURPDGDF\FOLQHLVODUJHUWKDQWKH
REVHUYHGSURSRUWLRQIRUPR[LIOR[DFLQDIRUPDOVWDWLVWLFDODQDO\VLVRIVXSHULRULW\ZLOOEH
FRQGXFWHG,IWKHORZHUOLPLWRIWKHVLGHG&,IRUWKHWUHDWPHQWGLIIHUHQFHLVJUHDWHUWKDQ
RPDGDF\FOLQHZLOOEHFRQVLGHUHGVXSHULRUWRPR[LIOR[DFLQ
7KHSULPDU\HIILFDF\RXWFRPHZLOOEHDVVHVVHGVHSDUDWHO\DFURVVWKHVWUDWLILFDWLRQIDFWRUVRI
32575LVN&ODVVUHFHLSWRIDOORZHGDQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQWDQGJHRJUDSKLFUHJLRQVWUDWXPE\WUHDWPHQWJURXS)RUHDFK32575LVN&ODVV
VWUDWXPHDFKSULRUDQWLEDFWHULDOWKHUDS\VWUDWXPDQGHDFKJHRJUDSKLFUHJLRQVWUDWXPDVLGHG
&,IRUWKHREVHUYHGGLIIHUHQFHLQ(DUO\&OLQLFDO5HVSRQVHUDWHVZLOOEHFDOFXODWHGIRUWKH
,77SRSXODWLRQ$GGLWLRQDOVXEJURXSDQDO\VHVRIWKHSULPDU\HIILFDF\RXWFRPHPD\EH
FRQGXFWHGDVGHVFULSWLYHDQDO\VHV
6HQVLWLYLW\DQDO\VHVLQFOXGHFRQGXFWLQJDQDGMXVWHGDQDO\VLVRIWKHSULPDU\HIILFDF\RXWFRPH
EDVHGRQWKHUDQGRPL]HGVWUDWXPDQGVHSDUDWHO\EDVHGRQWKHVWUDWXPWKHVXEMHFWDFWXDOO\
EHORQJVDQGFRQGXFWLQJDQDQDO\VLVZKHUHDOOVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUH
FRQVLGHUHG&OLQLFDO6XFFHVVHV
 $QDO\VLVRI6HFRQGDU\9DULDEOHV
$QDO\VHVIRUWKH)'$VHFRQGDU\RXWFRPHVZLOOEHGHVFULEHGKHUHDQGLQPRUHGHWDLOLQWKH6$3
$QDO\VHVIRUWKH(0$VHFRQGDU\RXWFRPHVZLOOEHGHVFULEHGLQWKH6$37KHQXPEHUDQG
SHUFHQWDJHRIVXEMHFWVFODVVLILHGDVD&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHDQG,QGHWHUPLQDWHE\WKH
,QYHVWLJDWRU¶V$VVHVVPHQWDW37(LQWKH,77DQG&(SRSXODWLRQVE\GHILQLWLRQVXEMHFWVZLWKDQ
,QGHWHUPLQDWHUHVSRQVHDUHH[FOXGHGIURPWKH&(SRSXODWLRQZLOOEHFDOFXODWHGIRUHDFK
WUHDWPHQWJURXS$VLGHGXQDGMXVWHG&,ZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQ
WKHFOLQLFDOVXFFHVVUDWHXVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ
)RU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(LQWKH,77DQG&(
SRSXODWLRQVWKH&,LVIRUGHVFULSWLYHSXUSRVHVRQO\DQGQRFRQFOXVLRQRI1,ZLOOEHPDGH
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFKWUHDWPHQWJURXSLQHDFKUHVSRQVHFDWHJRU\IRU
(DUO\&OLQLFDO5HVSRQVHZLOOEHSUHVHQWHGIRUWKHPLFUR,77SRSXODWLRQ7KHQXPEHUDQG
SHUFHQWDJHRIVXEMHFWVZKRDUHFODVVLILHGDVD&OLQLFDO6XFFHVVDQG&OLQLFDO)DLOXUHE\WKH
LQYHVWLJDWRUDWWKH37(YLVLWLQ0(SRSXODWLRQZLOOEHFDOFXODWHG7ZRVLGHGXQDGMXVWHG&,
ZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQWKHFOLQLFDOVXFFHVVUDWHVXVLQJWKHPHWKRGRI
0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDQ(DUO\&OLQLFDO5HVSRQVHRIVXFFHVVDQGDQ
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(RI&OLQLFDO6XFFHVVE\SDWKRJHQZLOOEH
SURYLGHGLQWKHPLFUR,77DQG0(SRSXODWLRQV
$OOFDXVHPRUWDOLW\$&0DWDQGGD\VDIWHUWKHILUVWGRVHRIWHVWDUWLFOHZLOOEH
VXPPDUL]HGLQWKH,77SRSXODWLRQ6XEMHFWVZKRDUHORVWWRIROORZXSZLOOEHFRQVLGHUHG
GHFHDVHGIRUWKLVDQDO\VLV$VLGHGXQDGMXVWHG&,IRUWKHREVHUYHGGLIIHUHQFHLQPRUWDOLW\
UDWHVZLOOEHFDOFXODWHGIRU$&0


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 $QDO\VLVRI$GGLWLRQDO(IILFDF\9DULDEOHV
$GGLWLRQDOHIILFDF\DQDO\VHVZLOOEHFRQGXFWHGWRVXSSRUWWKHHIILFDF\ILQGLQJVRIWKHSULPDU\
DQGVHFRQGDU\RXWFRPHV&,VZLOOEHGHWHUPLQHGIRUGHVFULSWLYHSXUSRVHVEXWQRFRQFOXVLRQVRI
1,ZLOOEHPDGH
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVFODVVLILHGDVD&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHDQG
,QGHWHUPLQDWHE\WKH,QYHVWLJDWRU¶V$VVHVVPHQWDW(27LQWKH,77DQG&(SRSXODWLRQVE\
GHILQLWLRQVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHH[FOXGHGIURPWKH&(SRSXODWLRQZLOOEH
FDOFXODWHG$VLGHGXQDGMXVWHG&,ZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQWKH
&OLQLFDO6XFFHVVUDWHXVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQ0LHWWLQHQDQG1XUPLQHQ

7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKVWDELOL]DWLRQRIYLWDOVLJQVDQGFOLQLFDO
VLJQVODERUDWRU\ILQGLQJVDVVRFLDWHGZLWK&$%3DWKRXUVSRVWILUVWGRVHRIWHVWDUWLFOHZLOO
EHSUHVHQWHGE\WUHDWPHQWJURXSLQWKH,77SRSXODWLRQ7KHVHLQFOXGHERG\WHPSHUDWXUHQR
IHYHURUK\SRWKHUPLD6%3!PP+JKHDUWUDWHESP55EUHDWKVPLQXWH
3D2PP+JE\$%*RUR[\JHQVDWXUDWLRQE\SXOVHR[LPHWU\SK\VLFDOH[DP
ILQGLQJVQRILQGLQJVRISXOPRQDU\FRQVROLGDWLRQ:%&FRXQWFHOOVPPRU
FHOOVPPRULPPDWXUHQHXWURSKLOV
$VXPPDU\QXPEHUDQGSHUFHQWDJHRIVXEMHFWVRIWKHDVVHVVPHQWRIFOLQLFDOVLJQVDQG
V\PSWRPVRI&$%3DWHDFKWLPHSRLQWWKURXJKRXWWKHVWXG\ZLOOEHSUHVHQWHGE\WUHDWPHQWJURXS
LQWKH,77SRSXODWLRQ7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKUHVROXWLRQRIVLJQVDQG
V\PSWRPVSUHVHQWDW6FUHHQLQJEDFNWRSUH&$%3VWDWXVZLOODOVREHSURYLGHGE\VWXG\YLVLW
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKQRZRUVHQLQJRIFOLQLFDOV\PSWRPVRI&$%3DQG
ZLWKWKHDEVHQFHRIQHZV\PSWRPVRI&$%3ZLOODOVREHSURYLGHGE\WUHDWPHQWJURXSLQWKH,77
SRSXODWLRQ
7KHSHUVXEMHFWDQGSHUSDWKRJHQPLFURELRORJLFRXWFRPHVZLOOEHSURYLGHGIRUWKHPLFUR,77DQG
0(SRSXODWLRQVDWWKH(27DQG37(YLVLWV7ZRVLGHGXQDGMXVWHG&,VZLOOEHSURYLGHGIRU
WKHGLIIHUHQFHLQSHUVXEMHFWPLFURELRORJLFDOIDYRUDEOHRXWFRPHUDWHV
$FRQFRUGDQFHDQDO\VLVRI(DUO\&OLQLFDO5HVSRQVHDQG,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(LQWKH,77DQDO\VLVVHWZLOODOVREHSUHVHQWHG

 6DIHW\2XWFRPH0HDVXUHV
6DIHW\YDULDEOHVLQFOXGHWKHLQFLGHQFHUDWHRI$(VFKDQJHLQYLWDOVLJQV(&*SDUDPHWHUVDQG
ODERUDWRU\WHVWUHVXOWVREWDLQHGGXULQJWKHFRXUVHRIWKHVWXG\)RUVDIHW\DQDO\VHVIRUERWKWKH
)'$DQG(0$VXEMHFWVZLOOEHDQDO\]HGDFFRUGLQJWRWKHWUHDWPHQWDFWXDOO\UHFHLYHG

$GYHUVH(YHQWV
6XPPDU\WDEOHVZLOOEHSURYLGHGIRUDOOWUHDWPHQWHPHUJHQWDGYHUVHHYHQWV7($(V$7($(
LVGHILQHGDVDQ$(ZLWKDVWDUWGDWHDQGWLPHRQRUDIWHUWKHILUVWGRVHRIWHVWDUWLFOH$(VZLOOEH


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

FRGHGXVLQJWKH0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV0HG'5$DQGZLOOEH
VXPPDUL]HGE\SUHVHQWLQJWKHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVKDYLQJHDFK7($(IRUHDFK
WUHDWPHQWJURXSE\V\VWHPRUJDQFODVV62&DQGSUHIHUUHGWHUP37$GGLWLRQDOWDEXODWLRQV
ZLOOSURYLGHVXPPDULHVE\62&DQG37RIVXEMHFWVH[SHULHQFLQJ6$(VVHYHUH7($(V7($(V
MXGJHGWREHUHODWHGWRWHVWDUWLFOH7($(VOHDGLQJWRGLVFRQWLQXDWLRQRIWHVWDUWLFOH7($(V
OHDGLQJWRGRVHLQWHUUXSWLRQRIWHVWDUWLFOHDQG7($(VRIVSHFLDOLQWHUHVW

9LWDO6LJQV
7KHIROORZLQJYDULDEOHVZLOOEHDQDO\]HGGHVFULSWLYHO\
x 9LWDOVLJQVV\VWROLFDQGGLDVWROLF%3SXOVHUDWHERG\WHPSHUDWXUH55LQFOXGLQJFKDQJH
IURP6FUHHQLQJE\YLVLW
x &OLQLFDOO\QRWDEOHYLWDOVLJQVPHHWLQJSUHGHILQHGFULWHULDDVVSHFLILHGLQWKH6$3E\YLVLW

6XEMHFWVZLWKQRWDEOHYLWDOVLJQVGDWDZLOOEHOLVWHG

(OHFWURFDUGLRJUDPV
(OHFWURFDUGLRJUDPGDWD55LQWHUYDO35LQWHUYDO456LQWHUYDO&RUUHFWHG47LQWHUYDO>47F@
47F%D]]HWW¶V&RUUHFWLRQ)RUPXOD>47F%@DQG47F)ULGHULFLD¶V&RUUHFWLRQ)RUPXOD>47F)@
ZLOOEHVXPPDUL]HGGHVFULSWLYHO\DWHDFKVFKHGXOHGHYDOXDWLRQDQGIRUWKHRYHUDOOZRUVWSRVW
6FUHHQLQJYDOXH&KDQJHVIURP6FUHHQLQJDWHDFKYLVLWZLOODOVREHSURYLGHG$QRXWOLHU
DQDO\VLVZLOOEHFRQGXFWHGEDVHGRQWKHZRUVWSRVW6FUHHQLQJYDOXH

/DERUDWRU\7HVWV
7KHIROORZLQJYDULDEOHVZLOOEHDQDO\]HGGHVFULSWLYHO\
x /DERUDWRU\YDULDEOHVE\YLVLW
x &KDQJHIURP6FUHHQLQJRIODERUDWRU\YDULDEOHE\YLVLW
x &OLQLFDOO\QRWDEOHODERUDWRU\YDOXHVPHHWLQJSUHGHILQHGFULWHULDVSHFLILHGLQWKH6$3E\
YLVLW

/LVWLQJVRILQGLYLGXDOVXEMHFWODERUDWRU\GDWDZLOOEHJHQHUDWHG9DOXHVPHHWLQJSUHGHILQHG
FULWHULDIRUEHLQJFOLQLFDOO\QRWDEOHZLOOEHIODJJHGZLWKLQWKHOLVWLQJV
 5HVRXUFH8WLOL]DWLRQ
'DWDIRUUHVRXUFHXWLOL]DWLRQZLOOEHFROOHFWHGWKURXJKWKH)LQDO)ROORZXSDVVHVVPHQWDQGZLOO
LQFOXGH
x QXPEHURIGD\VLQKRVSLWDOIURPWKHWLPHRILQLWLDWLRQRIWKHUDS\LQLWLDWLRQRIVHFRQGWKHUDS\
DVZHOODVIURPWKHILUVWGD\LQKRVSLWDOWRGDWHRIGLVFKDUJHIRUDOOVXEMHFWVDQGE\FRXQWU\
GXHWRWKHYDU\LQJFOLQLFDOSUDFWLFHVSHUFRXQWU\


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

x GXUDWLRQGD\VDQGQXPEHURIGRVHVRQLYWKHUDS\WHVWDUWLFOH
x GXUDWLRQGD\VDQGQXPEHURIRXWSDWLHQWLYGRVHVWHVWDUWLFOH
x GXUDWLRQGD\VDQGQXPEHURIGRVHVRQSRWKHUDS\WHVWDUWLFOH
'HVFULSWLYHVWDWLVWLFVIRUWKHUHVRXUFHXWLOL]DWLRQSDUDPHWHUVZLOOEHSURYLGHGE\WUHDWPHQWJURXS
IRUWKHSXUSRVHRIKHDOWKHFRQRPLFHYDOXDWLRQ
 3KDUPDFRNLQHWLFV
3RSXODWLRQ3.DQDO\VLVZLOOEHFRQGXFWHGWRFKDUDFWHUL]H3.SDUDPHWHUV$SRSXODWLRQ3.GDWD
VHWLQFOXGLQJVXEMHFWVZLWKRUPRUHTXDQWLILHGRPDGDF\FOLQHFRQFHQWUDWLRQGHWHUPLQDWLRQVZLOO
EHFRQVWUXFWHGIURPWKHGDWHVDQGWLPHVRIWKHGRVHVDQGEORRGVDPSOHVDORQJZLWKDOOWKH
ELRDQDO\WLFDOGHWHUPLQDWLRQVDQGVXEMHFWEDFNJURXQGLQIRUPDWLRQ,IWKHDFWXDOGDWHRUWLPHIRUD
EORRGVDPSOHRUGRVHLVPLVVLQJWKHUHODWHGELRDQDO\WLFDOGHWHUPLQDWLRQRIWKH3.FRQFHQWUDWLRQ
ZLOOEHH[FOXGHGIURPDOODQDO\VHV2PDGDF\FOLQHFRQFHQWUDWLRQVEHORZWKHOLPLWRI
TXDQWLILFDWLRQZLOOEHWUHDWHGDVPLVVLQJGDWDLQVXPPDU\VWDWLVWLFVDQGIRUWKHFDOFXODWLRQRI3.
SDUDPHWHUV
9DULDEOHVLQFOXGLQJDJH\HDUVERG\ZHLJKWNJJHQGHUDQGUDFHHWKQLFLW\DORQJZLWKRWKHU
FRYDULDWHVSUHYLRXVO\GHWHUPLQHGWREHLPSRUWDQWZLOOEHLQFRUSRUDWHGLQWRWKHSRSXODWLRQ3.
GDWDEDVH%DVHGRQWKHVXEMHFWVLQWKHSRSXODWLRQDQDO\VLVGDWDVHWGHVFULSWLYHVXPPDULHVDW
6FUHHQLQJIRUWKHVHYDULDEOHVZLOOEHUHSRUWHG2XWOLHUVPD\EHH[FOXGHGIURPWKHDQDO\VLV
7KHVHZLOOEHGHWHUPLQHGE\DVFDWWHUSORWRIWKHREVHUYHGFRQFHQWUDWLRQYHUVXVWLPHSRVWGRVH
DQGUHSRUWHG7KHGLVWULEXWLRQRIWKHQXPEHURIVDPSOHVFRQWULEXWHGSHUVXEMHFWWRWKH
PRGHOEDVHGDQDO\VLVZLOOEHWDEXODWHG$OVRVLPSOHVXPPDU\GHVFULSWLYHVWDWLVWLFVIRUWKH
FRQFHQWUDWLRQRIVDPSOHVE\VWXG\GD\RUZHHNZLOOEHFRPSXWHG

3RSXODWLRQ3.0RGHOLQJ
5HVXOWVIURP3KDVHVWXGLHVLQGLFDWHWKDWRPDGDF\FOLQH3.LVOLQHDUDQGWKDWIROORZLQJLY
LQIXVLRQSODVPDFRQFHQWUDWLRQWLPHSURILOHVVKRZDFRPSDUWPHQWDOGLVSRVLWLRQ7KHUHIRUHWKH
SUREDEOHVWUXFWXUDO3.PRGHOZRXOGEHDFRPSDUWPHQWPRGHOZLWK]HURRUGHULQSXWIRULY
LQIXVLRQDQGILUVWRUGHULQSXWIRUSRDGPLQLVWUDWLRQ7KLV3.PRGHOFRQWDLQVWKHSDUDPHWHUV
FOHDUDQFHYROXPHRIGLVWULEXWLRQELRDYDLODELOLW\DQGDEVRUSWLRQUDWHFRQVWDQW7KHDVVRFLDWHG
SRSXODWLRQPRGHOVDUHQRQOLQHDUPL[HGHIIHFWVPRGHOV7KHSRSXODWLRQPRGHODGGVUDQGRP
HIIHFWVDQGFRYDULDWHVIRUWKH3.SDUDPHWHUVLQRUGHUWRUHFRJQL]HGLIIHUHQFHVDPRQJLQGLYLGXDOV
DQGVLPLODULWLHVDFURVVREVHUYDWLRQVFRUUHVSRQGLQJWRWKHVDPHVXEMHFW$WWKHWLPHRIWKH
SRSXODWLRQPRGHOLQJSUHYLRXVO\UHSRUWHGVWUXFWXUDO3.PRGHOVZLOOEHFRQVLGHUHGILUVW$
UHVLGXDOHUURUPRGHOFRPELQLQJDGGLWLYHHUURUDQGSURSRUWLRQDOHUURUZLOODOVREHLQLWLDOO\
FRQVLGHUHG6LPSOLILFDWLRQVHJIHZHUUDQGRPHIIHFWVRUDQDOWHUQDWLYHUHVLGXDOHUURUPRGHO
PD\EHDSSURSULDWHLIWKHGLDJQRVWLFVIRUWKHPRGHOVXJJHVWIDOVHFRQYHUJHQFH$GGLWLRQDO
FRYDULDWHVZLOOEHLQYHVWLJDWHGJUDSKLFDOO\JHQGHUUDFHHWKQLFLW\DJHDVSDUWRIWKHPRGHO
GLDJQRVWLFVDQGVRPHPD\EHUHWDLQHGLQWKHILQDOPRGHODQGDGGLWLRQDORQHVLQDFRPSHWLQJ
PRGHOWRGHOLYHUHVWLPDWHVRIDUJXDEO\LQVLJQLILFDQWHIIHFWV6FDWWHUSORWVRIWKHREVHUYHG
FRQFHQWUDWLRQVYHUVXVSRSXODWLRQHVWLPDWHGDQGLQGLYLGXDOO\HVWLPDWHGFRQFHQWUDWLRQVZLOOEH


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

XVHGDVSDUWRIWKHRYHUDOODVVHVVPHQWRIWKHRYHUDOOTXDOLW\RIWKHILW'XULQJPRGHOLQJWKH
EURDGSULQFLSOHVRXWOLQHGE\WKH)'$ZLOOEHIROORZHG)'$
7KHLQGLYLGXDOPRGHOEDVHGH[SRVXUHPHDVXUHVDWVWHDG\VWDWHDUHDXQGHUWKH
&RQFHQWUDWLRQ7LPHFXUYH>$8&VV@WLPHWRPD[LPXPSODVPDFRQFHQWUDWLRQ>7PD[VV@
PD[LPXPSODVPDFRQFHQWUDWLRQ>&PD[VV@ZLOOEHFRPSXWHGDQGVXPPDUL]HG
 3KDUPDFRJHQHWLFV3KDUPDFRJHQRPLFV
3KDUPDFRJHQHWLFVSKDUPDFRJHQRPLFVVWXGLHVDUHQRWSODQQHGDVSDUWRIWKLVSURWRFRO
 %LRPDUNHUV
1RWDSSOLFDEOH
 3.3'
7KHUHODWLRQVKLSEHWZHHQRPDGDF\FOLQHH[SRVXUHDQGUHVSRQVHHIILFDF\DQGVDIHW\ZLOOEH
H[DPLQHGDVDSSURSULDWHIRUWKHGDWD$SRSXODWLRQ3.PRGHOZLOOEHXVHGWRFDOFXODWH
LQGLYLGXDOVXEMHFW$8&VDQGVXEVHTXHQWO\SRVVLEOH$8&0,&EUHDNSRLQWV
 6DPSOH6L]H&DOFXODWLRQ
7KHVWXG\LVGHVLJQHGWRVKRZ1,LQWKHSULPDU\HIILFDF\RXWFRPHRI(DUO\&OLQLFDO5HVSRQVHDW
KRXUVIROORZLQJWKHILUVWGRVHRIWHVWDUWLFOHLQWKH,77SRSXODWLRQ$Q1,PDUJLQRI
ZLOOEHXVHGIRUWKHDQDO\VLVLQWKH,77SRSXODWLRQ7KH1,PDUJLQZDVEDVHGRQDQDQDO\VLVRI
WKHKLVWRULFDOGDWDUHJDUGLQJWKHWUHDWPHQWHIIHFWRIDQWLELRWLFVLQSQHXPRQLD
,QWKHFHIWDUROLQHFOLQLFDOVWXGLHVZKLFKHQUROOHGRQO\32575LVN&ODVV,,,DQG,9WKHUDWHVIRU
FOLQLFDOVXFFHVVEDVHGRQ,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(YLVLWUDQJHG
IURPLQWKHPRGLILHG,77DQG&(SRSXODWLRQVZLWKWKHUDWHVLQWKHPRGLILHG,77
SRSXODWLRQORZHUWKDQWKRVHLQWKH&(SRSXODWLRQ7HIODURIXOOSUHVFULELQJLQIRUPDWLRQ
7KXVLWLVUHDVRQDEOHWRDVVXPHFOLQLFDOVXFFHVVUDWHVRILQWKH,77DQGLQWKH&(
SRSXODWLRQV
)RUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQWLQWKH,77SRSXODWLRQ
32575LVN&ODVV,,,DQG,9DVVXPLQJDQRXWFRPHUDWHRILQERWKWUHDWPHQWJURXSV1,
PDUJLQRISRZHUDQGDVLGHGDOSKDOHYHORIVLQFH&$%3VWXG\LVEHLQJ
FRQGXFWHGXVLQJWKHVDPSOHVL]HGHWHUPLQDWLRQPHWKRGRI)DUULQJWRQDQG0DQQLQJ)DUULQJWRQ
DQG0DQQLQJDWRWDORIVXEMHFWV32575LVN&ODVV,,,DQG,9DUHUHTXLUHG
$VVXPLQJDQHYDOXDELOLW\UDWHVXEMHFWVZLOOEHDYDLODEOHLQWKH&(SRSXODWLRQ
$VVXPLQJDQUHVSRQVHUDWHLQERWKWUHDWPHQWJURXSVD1,PDUJLQVLGHGDOSKDOHYHO
RIWKHUHLVSRZHUWRVKRZ1,IRU,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW
37(LQWKH&(SRSXODWLRQ,IRIVXEMHFWVDUHLQ32575LVN&ODVV,,DWRWDORIVXEMHFWV
DUHUHTXLUHG


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

5HWURVSHFWLYHDQDO\VHVRIFOLQLFDOVWXG\GDWD7DOERWHWDOLQGLFDWHWKHSRLQWHVWLPDWHVIRU
(DUO\&OLQLFDO5HVSRQVHDW'D\UDQJHIURP,QDGGLWLRQDUHFHQWFOLQLFDOVWXG\RI
RUDOVROLWKURP\FLQFRPSDUHGWRPR[LIOR[DFLQIRXQGRIVXEMHFWVKDGDQ(DUO\&OLQLFDO
5HVSRQVHUDWHRIVXFFHVV7KXVLWLVUHDVRQDEOHWRDVVXPHWKDWLQDSURVSHFWLYHVWXG\RIVXEMHFWV
ZLWKPRGHUDWHWRVHYHUH&$%3WKHUDWHRI&OLQLFDO6XFFHVVDWDQHDUO\WLPHSRLQWZLOOEH
DSSUR[LPDWHO\
)RUWKH(DUO\&OLQLFDO5HVSRQVHSULPDU\HIILFDF\HQGSRLQWZLWKVXEMHFWVLQWKH,77
SRSXODWLRQDUHVSRQVHUDWHRIIRUERWKWUHDWPHQWJURXSV1,PDUJLQRIDVLGHGDOSKD
OHYHORIWKHUHLVDSRZHUWRVKRZ1,$VVXPLQJWKHPLFURELRORJLFDOHYDOXDELOLW\UDWH
LVDWRWDORIVXEMHFWVDUHH[SHFWHGWREHLQWKHPLFUR,77SRSXODWLRQ
7KXVVXEMHFWVSURYLGHVVXIILFLHQWSRZHUIRUWKHSULPDU\HIILFDF\DQDO\VHVIRUERWKWKH)'$
DQG(0$UHJXODWRU\DXWKRULWLHV$VXPPDU\RIWKHVDPSOHVL]HFDOFXODWLRQVDQGDVVXPSWLRQVLV
SURYLGHGLQ7DEOH
7DEOH
6DPSOH6L]HDQG3RZHU&DOFXODWLRQV

3ULPDU\2XWFRPH
(DUO\&OLQLFDO
5HVSRQVH
6HFRQGDU\
2XWFRPH(DUO\
&OLQLFDO5HVSRQVH
6HFRQGDU\2XWFRPH,QYHVWLJDWRU¶V
$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW
37(
3RSXODWLRQ
,77
PLFUR,77
,77
&(
1,0DUJLQ




(YDOXDELOLW\5DWH
1$

1$

2XWFRPH5DWH




32575LVN&ODVV,,
1$
1$


1




3RZHU




&( FOLQLFDOO\HYDOXDEOH,77 LQWHQWWRWUHDWPLFUR,77 PLFURELRORJLFDOLQWHQWWRWUHDW1 QXPEHU1$ QRW
DSSOLFDEOH1, QRQLQIHULRULW\37( SRVWWKHUDS\HYDOXDWLRQ
 ,QWHULP$QDO\VHV
1RLQWHULPDQDO\VHVRIHIILFDF\DUHSODQQHG+RZHYHUD'60&ZLOOUHYLHZVDIHW\GDWDHJ$(V
DQG6$(VODERUDWRU\GDWD(&*DQGYLWDOVLJQVDVVHVVPHQWVDWUHJXODUWLPHSRLQWVZKLOHWKH
VWXG\LVRQJRLQJ
 +DQGOLQJRI0LVVLQJ9DOXHV&HQVRULQJ'LVFRQWLQXDWLRQV
0LVVLQJYDOXHVZLOOQRWEHLPSXWHGIRUSULPDU\DQGVHFRQGDU\HIILFDF\DQGVDIHW\DQDO\VHV
H[FHSWDVGHWDLOHGLQWKH6$3IRUPLVVLQJGDWHVDQGRQO\REVHUYHGYDOXHVZLOOEHXVHGLQGDWD
DQDO\VHVDQGSUHVHQWDWLRQV)RUWKHSULPDU\RXWFRPHPHDVXUHLIDQ\GDWDILHOGQHHGHGWR
GHWHUPLQHWKHUHVSRQVHLVPLVVLQJWKHVXEMHFWZLOOEHDVVLJQHGDQ,QGHWHUPLQDWHUHVSRQVH
6XEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHLQFOXGHGLQWKHGHQRPLQDWRUDQGWKXVDUH


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

FRQVLGHUHG&OLQLFDO)DLOXUHV$VHQVLWLYLW\DQDO\VLVRIWKHSULPDU\RXWFRPHZLOOEHFRQGXFWHGLQ
ZKLFKVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHFRQVLGHUHG&OLQLFDO6XFFHVVHV
)RUWKHVHFRQGDU\RXWFRPHPHDVXUHRI,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(LQ
WKH,77SRSXODWLRQFRSULPDU\IRU(0$DQDO\VLVVXEMHFWVZLWKPLVVLQJGDWDDUHDVVLJQHGDQ
,QGHWHUPLQDWHUHVSRQVH6XEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHLQFOXGHGLQWKH
GHQRPLQDWRUDQGWKXVDUHFRQVLGHUHGIDLOXUHV7DEOHSURYLGHVDVXPPDU\RIWKHKDQGOLQJRI
PLVVLQJLQGHWHUPLQDWHRXWFRPHVIRUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(
7DEOH
,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37('HWHUPLQDWLRQ*LYHQ
0LVVLQJ'DWD
(279LVLW
37(9LVLW
2YHUDOO$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(,QYHVWLJDWRU¶V
$VVHVVPHQW
0LVVLQJLQGHWHUPLQDWH
6XFFHVV
,QGHWHUPLQDWH
0LVVLQJLQGHWHUPLQDWH
)DLOXUH
)DLOXUH
0LVVLQJLQGHWHUPLQDWH
0LVVLQJLQGHWHUPLQDWH
,QGHWHUPLQDWH
6XFFHVV
0LVVLQJLQGHWHUPLQDWH
,QGHWHUPLQDWH
)DLOXUH
0LVVLQJLQGHWHUPLQDWH
)DLOXUH
)RUWKHDQDO\VLVLQWKH,77DQDO\VLVVHWRI,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(,QGHWHUPLQDWH
RXWFRPHVDUHLQFOXGHGLQWKHGHQRPLQDWRUDQGDUHWKXVFRQVLGHUHG&OLQLFDO)DLOXUHV
0LVVLQJGDWDDUHKDQGOHGLQDVLPLODUPDQQHUIRUWKHRXWFRPHRIPLFURELRORJLFDOUHVSRQVHDW37(
(27 HQGRIWUHDWPHQW,77 LQWHQWWRWUHDW37( SRVWWKHUDS\HYDOXDWLRQ

 68%-(&7,'(17,),&$7,21
(DFKVXEMHFWLQWKHVWXG\LVDVVLJQHGDXQLTXHVXEMHFWQXPEHUDQGPXVWNHHSWKDWQXPEHU
WKURXJKRXWWKHVWXG\HYHQLIKHVKHWUDQVIHUVWRDQRWKHUVLWH$VXEMHFWZKRGLVFRQWLQXHV
SDUWLFLSDWLRQRULVZLWKGUDZQEHIRUHUHFHLYLQJDWUHDWPHQWDVVLJQPHQWFRGHDQGZKRUHHQUROOVDW
DODWHUWLPHZLOOEHDVVLJQHGDQHZVXEMHFWQXPEHUDQGUHFRUGHGDVUHVFUHHQHG7KHLQYHVWLJDWRU
PXVWPDLQWDLQDVXEMHFWPDVWHUORJRIDOOVXEMHFWV
 7(67$57,&/($&&2817$%,/,7<5(&21&,/,$7,21$1'
5(7851
7KHLQYHVWLJDWRUPXVWPDLQWDLQDFRPSOHWHDQGFXUUHQWGLVSHQVLQJDQGLQYHQWRU\UHFRUGRIWHVW
DUWLFOHWKDWKDVEHHQVXSSOLHGE\WKHVSRQVRU
$OOXQXVHGWHVWDUWLFOHPXVWEHUHWXUQHGLQWKHRULJLQDOFRQWDLQHUV(PSW\WHVWDUWLFOHFRQWDLQHUV
PD\EHGHVWUR\HGDIWHUWKHVSRQVRUKDVSHUIRUPHGDFFRXQWDELOLW\7HVWDUWLFOHGHVWUXFWLRQPXVW
EHGRFXPHQWHGRQWKHGLVSHQVLQJDQGLQYHQWRU\UHFRUG


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 6XSSO\6WRUDJHDQG7UDFNLQJRI6WXG\7UHDWPHQW
7HVWDUWLFOHPXVWEHUHFHLYHGE\DGHVLJQDWHGSHUVRQDWWKHVWXG\VLWHKDQGOHGDQGVWRUHGVDIHO\
DQGSURSHUO\DQGNHSWLQDVHFXUHGORFDWLRQ8SRQUHFHLSWDOOWHVWDUWLFOHVKRXOGEHUHFRQFLOHG
ZLWKWKHVKLSSLQJLQIRUPDWLRQDQGVWRUHGDFFRUGLQJWRWKHLQVWUXFWLRQVVSHFLILHGRQWKH
PHGLFDWLRQODEHOV&OLQLFDOVXSSOLHVDUHWREHGLVSHQVHGRQO\LQDFFRUGDQFHZLWKWKHSURWRFRO
0HGLFDWLRQODEHOVZLOOEHLQWKHORFDOODQJXDJHDQGFRPSO\ZLWKWKHOHJDOUHTXLUHPHQWVRIHDFK
FRXQWU\,QDGGLWLRQWKH\ZLOOLQFOXGHVWRUDJHFRQGLWLRQVIRUWKHPHGLFDWLRQ
7KHXQEOLQGHGSKDUPDFLVWRUGHVLJQHHVKRXOGPDLQWDLQDQDFFXUDWHUHFRUGRIWKHVKLSPHQWDQG
GLVSHQVLQJRILYWHVWDUWLFOHLQWKHVWXG\VSHFLILFPHGLFDWLRQDFFRXQWDELOLW\OHGJHU0RQLWRULQJRI
LYPHGLFDWLRQDFFRXQWDELOLW\ZLOOEHSHUIRUPHGE\WKHXQEOLQGHGILHOGPRQLWRUGXULQJVLWHYLVLWV
DQGDWWKHFRPSOHWLRQRIWKHVWXG\2UDOWHVWDUWLFOHVXSSOLHVDUHFRPSOHWHO\EOLQGHG7KHUHIRUH
RUDOWHVWDUWLFOHVXSSOLHVFDQEHWUDQVIHUUHGIURPWKHXQEOLQGHGVWXG\SHUVRQQHOWREOLQGHGVWXG\
SHUVRQQHOIRUVWRUDJHGLVSHQVDWLRQDQGUHFRQFLOLDWLRQ0RQLWRULQJRIRUDOPHGLFDWLRQ
DFFRXQWDELOLW\ZLOOEHSHUIRUPHGE\WKHEOLQGHGRUXQEOLQGHGILHOGPRQLWRUGXULQJVLWHYLVLWVDQG
DWWKHFRPSOHWLRQRIWKHVWXG\6XEMHFWVZLOOEHDVNHGWRUHWXUQDOOXQXVHGSRWHVWDUWLFOHDQG
SDFNDJLQJDWHDFKYLVLWDQGDWWKHHQGRIWKHVWXG\ODVWVWXG\YLVLWRUDWWKHWLPHRIWHVWDUWLFOH
GLVFRQWLQXDWLRQ
$WWKHFRQFOXVLRQRIWKHVWXG\DQGDVDSSURSULDWHGXULQJWKHFRXUVHRIWKHVWXG\ZLWKLQVWUXFWLRQ
IURPWKHVSRQVRUWKHXQEOLQGHGSKDUPDFLVWRUGHVLJQHHZLOOGHVWUR\RQVLWHRUUHWXUQXQXVHGWHVW
DUWLFOHSDFNDJLQJPHGLFDWLRQODEHOVDQGVHQGDFRS\RIWKHFRPSOHWHGPHGLFDWLRQ
DFFRXQWDELOLW\OHGJHUWRWKHPRQLWRURUWRWKHDGGUHVVSURYLGHGWRWKHLQYHVWLJDWRU
 5$1'20,=$7,21$1'%/,1',1*
 7UHDWPHQW$VVLJQPHQW
$OOHOLJLEOHVXEMHFWVZLOOEHUDQGRPL]HGYLDDQ,[56WKDWDVVLJQVWKHPWRRIWKHWUHDWPHQWDUPV
LQDUDWLR7KHVLWHGHOHJDWHZLOOFRQWDFWWKH,[56YLDSKRQHRUZHEDIWHUFRQILUPLQJWKDW
WKHVXEMHFWIXOILOOVDOOWKHLQFOXVLRQFULWHULDDQGQRQHRIWKHH[FOXVLRQFULWHULD7KH,[56ZLOO
DVVLJQDWHVWDUWLFOHWRWKHVXEMHFWEDVHGRQDFRPSXWHUJHQHUDWHGUDQGRPL]DWLRQVFKHGXOH7KH
UDQGRPL]DWLRQZLOOEHDEORFNHGUDQGRPL]DWLRQVHTXHQFHVWUDWLILHGE\32575LVN&ODVV,,RU
,,,,9UHFHLSWRIDQDOORZHGDQWLEDFWHULDOWKHUDS\6HH$SSHQGL[LQWKHKRXUVSULRUWR
VWXG\WUHDWPHQWDQGJHRJUDSKLFUHJLRQDVGHILQHGLQWKH,[56VSHFLILFDWLRQVDQG6$36XEMHFWV
UDQGRPL]HGLQWRWKHVWXG\ZLOOEHDVVLJQHGWKHWUHDWPHQWFRUUHVSRQGLQJWRWKHQH[WDYDLODEOH
QXPEHULQWKHUHVSHFWLYHVWUDWXPRIWKHFRPSXWHUJHQHUDWHGUDQGRPL]DWLRQVFKHGXOH7KH
VXEMHFWLVFRQVLGHUHGUDQGRPL]HGZKHQWKH,[56SURYLGHVWKHWHVWDUWLFOHDVVLJQPHQWUHJDUGOHVV
RIZKHWKHUWKHVXEMHFWDFWXDOO\UHFHLYHVDQ\PHGLFDWLRQ5DQGRPL]DWLRQRIVXEMHFWVZLWKD
32575LVN&ODVVRI,,ZLOOEHFDSSHGDWRIWKHVXEMHFWVUDQGRPL]HG5DQGRPL]DWLRQRI
VXEMHFWVZKRKDYHUHFHLYHGDQDOORZHGDQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQWZLOOEHFDSSHGDWRIWKHVXEMHFWVUDQGRPL]HG


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 'LVSHQVLQJWKH7HVW$UWLFOH
(DFKVWXG\VLWHZLOOEHVXSSOLHGE\WKHVSRQVRUZLWKWKHLQYHVWLJDWLRQDOSURGXFWDQGFRPSDUDWRU
7KH,[56ZLOOLQVWUXFWWKHSKDUPDFLVWRUGHVLJQHHDVWRWKHDSSURSULDWHWKHUDS\RPDGDF\FOLQHRU
PR[LIOR[DFLQWREHDGPLQLVWHUHG7KHXQEOLQGHGVLWHSKDUPDFLVWRUGHVLJQHHZLOOSUHSDUHWKH
WHVWDUWLFOHDVLQVWUXFWHG7KHXQEOLQGHGSKDUPDFLVWRUGHVLJQHHZLOOSURYLGHWKHEOLQGHGQXUVH
DGPLQLVWHULQJWKHLQIXVLRQZLWKWKHDSSURSULDWHVROXWLRQVIRUHDFKVXEMHFWFRYHUHGWRFRQFHDOWKH
LGHQWLW\RIWKHWHVWDUWLFOHXVLQJPDWHULDOVSURYLGHGE\WKHVSRQVRUDQGODEHOHGZLWKEOLQGHG
DGPLQLVWUDWLRQLQVWUXFWLRQV7KHSRWHVWDUWLFOHZLOOEHVXSSOLHGWRWKHVLWHVLQNLWVWKDWLQFOXGH
DFWLYHRPDGDF\FOLQHWDEOHWVRUPDWFKHGSODFHERWDEOHWVDQGDFWLYHPR[LIOR[DFLQRYHU
HQFDSVXODWHGWDEOHWVRUPDWFKHGSODFHERRYHUHQFDSVXODWHGWDEOHWV2UDOWHVWDUWLFOHVXSSOLHVDUH
FRPSOHWHO\EOLQGHG7KHUHIRUHRUDOWHVWDUWLFOHVXSSOLHVFDQEHWUDQVIHUUHGIURPWKHXQEOLQGHG
VWXG\SHUVRQQHOWREOLQGHGVWXG\SHUVRQQHOIRUVWRUDJHGLVSHQVDWLRQDQGUHFRQFLOLDWLRQ7KH
VWXG\FRRUGLQDWRUVWDIIZLOOLQVWUXFWWKHVXEMHFWRQWKHXVHRISRWHVWDUWLFOH7KHSURFHGXUHVDUH
GHWDLOHGLQWKH3KDUPDF\0DQXDO
 7UHDWPHQW%OLQGLQJ
7KHLQYHVWLJDWRUDQGVSRQVRUZLOOEHEOLQGHGWRWUHDWPHQWDUPDVVLJQPHQWVWKURXJKRXWWKHVWXG\
7KHLYDQGSRSKDVHVRIWKHVWXG\ZLOOEHGRXEOHEOLQG
'XULQJWKHLYWUHDWPHQWSHULRGVXEMHFWVDVVLJQHGWRRPDGDF\FOLQHZLOOUHFHLYHWHVWDUWLFOHTK
IRUWKHILUVWGRVHVIROORZHGE\PJLYTKVWDUWLQJKRXUVDIWHUWKHILUVWGRVH6XEMHFWV
DVVLJQHGWRPR[LIOR[DFLQZLOOUHFHLYHWHVWDUWLFOHTKZLWKDVLQJOHSODFHERLQIXVLRQWKH
VXEMHFW¶VVHFRQGLQIXVLRQKRXUVDIWHUWKHILUVWGRVHWRPDWFKWKHRPDGDF\FOLQHGRVLQJ
UHJLPHQVHH7DEOH
%HFDXVHWKHFRORURIWKHLYWHVWDUWLFOHLQIXVLRQVDQGSODFHERLQIXVLRQVGLIIHUDOOLQIXVLRQEDJV
DQGLYWXELQJZLOOEHFRYHUHGZLWKPDWHULDOVSURYLGHGE\WKHVSRQVRUVRWKDWVXEMHFWVDQGEOLQGHG
VWXG\SHUVRQQHOZLOOQRWNQRZWKHLGHQWLW\RIWKHWHVWDUWLFOHEHLQJDGPLQLVWHUHG7KHLQIXVLRQ
UHJLPHQZLOOIROORZDGRXEOHGXPP\GHVLJQZLWKVXEMHFWVLQHDFKVWXG\DUPUHFHLYLQJWKHVDPH
LQIXVLRQYROXPHVZLWKWKHVDPHDGPLQLVWUDWLRQLQVWUXFWLRQV%OLQGHGVWXG\SHUVRQQHOZLOO
DGPLQLVWHUWKHLQIXVLRQVDQGFROOHFWUHYLHZDQGHQWHUGDWDUHJDUGLQJWKHLYLQIXVLRQVHJVWDUW
DQGVWRSWLPHVLQWRDQH&5),IJUDYLW\DGPLQLVWUDWLRQLVQRWWKHVWDQGDUGRIFDUHWKHQDQ
LQIXVLRQSXPSPD\EHXVHG,IDQLQIXVLRQSXPSLVXVHGWKHQDSRWHQWLDOO\XQEOLQGHG
DGPLQLVWUDWRUZLOOEHUHTXLUHG3HUVRQQHOLGHQWLILHGDVSRWHQWLDOO\XQEOLQGHGDGPLQLVWUDWRUV
VKRXOGQRWSDUWLFLSDWHLQDQ\VWXG\SURFHGXUHVRWKHUWKDQLYDGPLQLVWUDWLRQRIWHVWDUWLFOHDQGWKH
FROOHFWLRQUHYLHZDQGHQWU\RILYUHODWHGGDWDHJVWDUWDQGVWRSWLPHVLQWRDQH&5)
'XULQJWKHSRSKDVHDGRXEOHGXPP\GHVLJQZLOODOVREHXVHGWRHQVXUHWKHEOLQG6XEMHFWVRQ
WKHRPDGDF\FOLQHDUPDFWLYHRPDGDF\FOLQHWDEOHWVDQGRYHUHQFDSVXODWHGPR[LIOR[DFLQSODFHER
WDEOHWV6XEMHFWVRQWKHPR[LIOR[DFLQDUPZLOOUHFHLYHRPDGDF\FOLQHSODFHERWDEOHWVDQGRYHU
HQFDSVXODWHGDFWLYHPR[LIOR[DFLQWDEOHWV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

7KHXQEOLQGHGVRXUFHGRFXPHQWDWLRQELQGHUFRQWDLQLQJDOOGHVFULSWLRQVRISKDUPDF\SUHSDUDWLRQV
DQGLQIXVLRQVRUGLVWULEXWLRQVRIWHVWDUWLFOHDQGDQ\XQEOLQGHGVXEMHFWUDQGRPL]DWLRQGDWDVKRXOG
EHVWRUHGVHSDUDWHO\DQGXQGHUORFNDQGNH\IURPWKHGRFXPHQWVFRQWDLQLQJEOLQGHG
LQIRUPDWLRQ
5DQGRPL]DWLRQGDWDDUHNHSWVWULFWO\FRQILGHQWLDOXQWLOWKHWLPHRIGDWDEDVHORFNDQGXQEOLQGLQJ
DWWKHHQGRIWKHVWXG\
$OOH&5)VPXVWEHFRPSOHWHGHQWHUHGDQGFKHFNHGDOOVDIHW\ODERUDWRU\UHVXOWVPXVWKDYHEHHQ
UHSRUWHGDOO$(VPXVWKDYHEHHQIXOO\FKDUDFWHUL]HGHJUHODWLRQVKLSWRWHVWDUWLFOHGHWHUPLQHG
DQGFRGHGDQGDOOTXHULHVPXVWKDYHEHHQUHVROYHGSULRUWRGDWDEDVHORFNDQGXQEOLQGLQJ
'HWHUPLQDWLRQRILQFOXVLRQLQWKHDQDO\VLVSRSXODWLRQVFKDUDFWHUL]DWLRQRISURWRFROGHYLDWLRQVDV
PDMRUPLQRUDQGILQDODSSURYDORIWKH6$3ZLOODOVREHFRPSOHWHGSULRUWRGDWDEDVHORFN
'DWDWKDWFRXOGSRWHQWLDOO\OHDGWRXQEOLQGLQJZLOOQRWEHDFFHVVLEOHWRDQ\RQHRWKHUWKDQWKH
IROORZLQJVLWHSHUVRQQHO
x XQEOLQGHGVWXG\SKDUPDFLVWRUGHVLJQHH
x XQEOLQGHGVWXG\PRQLWRU
x SRWHQWLDOO\XQEOLQGHGDGPLQLVWUDWRUV

3ODVPDVDPSOHVIRUVXEMHFWVUHFHLYLQJRPDGDF\FOLQHPD\EHDQDO\]HGGXULQJWKHFRXUVHRIWKH
VWXG\7RSHUPLWWKHVSRQVRUWRUHYLHZWKHGUXJFRQFHQWUDWLRQGDWDSULRUWRORFNLQJWKHGDWDVHW
DQGZLWKRXWXQEOLQGLQJDQ\3.GDWDSURYLGHGSULRUWRXQEOLQGLQJZLOOEHUHFRGHGE\WKH
ELRDQDO\WLFDOODERUDWRU\WRDYRLGUHYHDOLQJWKHLQGLYLGXDOVXEMHFWQXPEHUV
8QEOLQGLQJLVRQO\WRRFFXULQWKHFDVHRIVXEMHFWHPHUJHQFLHVVHH6HFWLRQDQGDWWKH
FRQFOXVLRQRIWKHVWXG\
 (PHUJHQF\8QEOLQGLQJRI7UHDWPHQW$VVLJQPHQW
(PHUJHQF\XQEOLQGLQJVKRXOGRQO\EHXQGHUWDNHQZKHQLWLVHVVHQWLDOWRWUHDWWKHVXEMHFWVDIHO\
DQGHIILFDFLRXVO\0RVWRIWHQWHVWDUWLFOHGLVFRQWLQXDWLRQDQGNQRZOHGJHRIWKHSRVVLEOH
WUHDWPHQWDVVLJQPHQWVDUHVXIILFLHQWWRWUHDWDVWXG\VXEMHFWZKRSUHVHQWVZLWKDQHPHUJHQF\
FRQGLWLRQ,WLVHQFRXUDJHGIRUWKHLQYHVWLJDWRUZKHQFRQWHPSODWLQJXQEOLQGLQJWRFRQWDFWWKH
VSRQVRURUVSRQVRU¶VGHVLJQDWHG0HGLFDO0RQLWRURUGHVLJQHHWRFRQILUPWKHQHHGWRXQEOLQG
SULRUWRXQEOLQGLQJ+RZHYHULIUHTXLUHGWKHLQYHVWLJDWRUFDQXQEOLQGZLWKRXWFRQVXOWLQJWKH
0HGLFDO0RQLWRU
(PHUJHQF\FRGHEUHDNVDUHSHUIRUPHGXVLQJWKH,[56:KHQWKHLQYHVWLJDWRUFRQWDFWVWKH
V\VWHPWRXQEOLQGDVXEMHFWKHVKHPXVWSURYLGHWKHUHTXHVWHGVXEMHFWLGHQWLI\LQJLQIRUPDWLRQ
DQGFRQILUPWKHQHFHVVLW\WRXQEOLQGWKHVXEMHFW7KHLQYHVWLJDWRUZLOOWKHQUHFHLYHGHWDLOVRIWKH
GUXJWUHDWPHQWIRUWKHVSHFLILHGVXEMHFWDQGDID[RUHPDLOFRQILUPLQJWKDWWKHWUHDWPHQW


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

DVVLJQPHQWRIWKHVXEMHFWZDVXQEOLQGHG7KHV\VWHPZLOODXWRPDWLFDOO\LQIRUPWKHVSRQVRU¶V
PRQLWRUIRUWKHVLWHDQGWKHVSRQVRUWKDWWKHFRGHKDVEHHQEURNHQ
,WLVWKHLQYHVWLJDWRU¶VUHVSRQVLELOLW\WRHQVXUHWKDWWKHUHLVDSURFHGXUHLQSODFHWRDOORZDFFHVVWR
WKH,[56FRGHEUHDNLQIRUPDWLRQLQFDVHRIHPHUJHQF\7KHLQYHVWLJDWRUZLOOLQIRUPWKHVXEMHFW
KRZWRFRQWDFWKLVKHUEDFNXSLQFDVHVRIHPHUJHQF\ZKHQKHVKHLVXQDYDLODEOH7KH
LQYHVWLJDWRUZLOOSURYLGHSURWRFROQXPEHUWHVWDUWLFOHQDPHLIDYDLODEOHVXEMHFWQXPEHUDQG
LQVWUXFWLRQVIRUFRQWDFWLQJWKHVSRQVRURUDQ\HQWLW\WRZKLFKLWKDVGHOHJDWHGUHVSRQVLELOLW\IRU
HPHUJHQF\FRGHEUHDNVWRWKHVXEMHFWLQFDVHHPHUJHQF\XQEOLQGLQJLVUHTXLUHGDWDWLPHZKHQ
WKHLQYHVWLJDWRUDQGEDFNXSDUHXQDYDLODEOH
,QWKHHYHQWRIDPHGLFDOHPHUJHQF\LQZKLFKWKHLQYHVWLJDWRUMXGJHVWKDWWKHVXEMHFWFDQQRWEH
PDQDJHGVDIHO\ZLWKRXWXQEOLQGLQJWKHLQYHVWLJDWRUPD\REWDLQWKHWUHDWPHQWDOORFDWLRQGLUHFWO\
IURPWKHUHVHDUFKSKDUPDFLVWRUGHVLJQHH$OOVWHSVRXWOLQHGDERYHZLOOEHIROORZHGLQFOXGLQJ
FRQWDFWLQJWKH0HGLFDO0RQLWRUDVVRRQDVSRVVLEOHDQGQRWPRUHWKDQKRXUVDIWHUZDUGV,W
ZLOOEHWKHUHVSRQVLELOLW\RIDOOVWXG\SHUVRQQHOWRHQVXUHWKDWH[FHSWIRUWKHDERYHSURFHGXUH
LQYHVWLJDWRUEOLQGLQJLVPDLQWDLQHGXQWLODIWHUVWXG\FRPSOHWLRQ
 68%-(&7',6&217,18$7,2125:,7+'5$:$/
5HDVRQVZK\DVXEMHFWPD\GLVFRQWLQXHRUEHZLWKGUDZQIURPWKHVWXG\LQFOXGHEXWDUHQRW
OLPLWHGWR$(VXEMHFWUHTXHVWSURWRFROYLRODWLRQVXEMHFWQRQFRPSOLDQFHDQGVWXG\WHUPLQDWLRQ
E\WKHVSRQVRU6XEMHFWVPD\YROXQWDULO\ZLWKGUDZIURPWKHVWXG\IRUDQ\UHDVRQDWDQ\WLPH
6XEMHFWVDUHFRQVLGHUHGZLWKGUDZQIURPWKHVWXG\LIWKH\VWDWHDQLQWHQWLRQWRZLWKGUDZRUIDLOWR
UHWXUQIRUYLVLWVRUEHFRPHORVWWRIROORZXSIRUDQ\RWKHUUHDVRQ,ISUHPDWXUHZLWKGUDZDOIURP
WKHVWXG\RFFXUVIRUDQ\UHDVRQWKHLQYHVWLJDWRUVKRXOGGHWHUPLQHWKHSULPDU\UHDVRQIRUD
VXEMHFW¶VSUHPDWXUHZLWKGUDZDOIURPWKHVWXG\DQGUHFRUGWKLVLQIRUPDWLRQRQWKHH&5)
6XEMHFWVZKRGLVFRQWLQXHVWXG\WUHDWPHQWXQOHVVWKDWVXEMHFWZLWKGUDZVLQIRUPHGFRQVHQW
VKRXOG127EHFRQVLGHUHGZLWKGUDZQIURPWKHVWXG\7KHGDWHDQGSULPDU\UHDVRQIRU
GLVFRQWLQXDWLRQRIVWXG\WUHDWPHQWVKRXOGEHUHFRUGHGLQVRXUFHGRFXPHQWV6XEMHFWVZKR
GLVFRQWLQXHWKHVWXG\WUHDWPHQWVKRXOGKDYHWKH(27YLVLWDQGWKHSURFHGXUHVOLVWHGIRUWKDWYLVLW
LQWKH678'<)/2:&+$57D37(YLVLWDQGD)LQDO)ROORZXSDVVHVVPHQWLISRVVLEOH7KH
VLWHVKRXOGDOVRFROOHFWVXEMHFWVDIHW\LQIRUPDWLRQWKURXJKWKH)LQDO)ROORZXSDVVHVVPHQW
6LWHSHUVRQQHOVKRXOGDOVRFRQWDFWWKH,[56WRUHJLVWHUWKHVXEMHFW¶VGLVFRQWLQXDWLRQIURPWHVW
DUWLFOH
)RUVXEMHFWVZKRDUHORVWWRIROORZXSWKHLQYHVWLJDWRUVKRXOGVKRZGXHGLOLJHQFHE\
GRFXPHQWLQJLQWKHVRXUFHGRFXPHQWVVWHSVWDNHQWRFRQWDFWWKHVXEMHFWHJGDWHVRIWHOHSKRQH
FDOOVUHJLVWHUHGOHWWHUVHWF
6XEMHFWVZKRDUHSUHPDWXUHO\ZLWKGUDZQIURPWKHVWXG\ZLOOQRWEHUHSODFHGE\DQHTXDOQXPEHU
RIQHZO\HQUROOHGVXEMHFWV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 678'<6863(16,217(50,1$7,21$1'&203/(7,21
 6WXG\&RPSOHWLRQDQG3RVW6WXG\7HVW$UWLFOH
$VXEMHFWZLOOKDYHVXFFHVVIXOO\FRPSOHWHGWKHVWXG\DIWHUSODQQHGLYDQGSRWHVWDUWLFOHKDVEHHQ
DGPLQLVWHUHGDQGDOODVVHVVPHQWVDQGYLVLWVKDYHEHHQPDGH9LVLWVLQFOXGHWKHILQDOIROORZXS
YLVLW)LQDO)ROORZXS7KHVWXG\ZLOOEHFRPSOHWHGZKHQWKHODVWVXEMHFWKDVHLWKHU
GLVFRQWLQXHGRUFRPSOHWHGWKH)LQDO)ROORZXSYLVLW
1RORQJWHUPIROORZXSRIVXEMHFWVLVSODQQHGZLWKWKHH[FHSWLRQRISUHJQDQFLHVDVGHVFULEHGLQ
6HFWLRQDQG6$(VGHVFULEHGLQ6HFWLRQ
6LWHVZLOOEHQRWLILHGE\HLWKHUWKHVSRQVRURU,[56WRVWRSHQUROOPHQWZKHQWKHGHVLUHGQXPEHU
RIWUHDWHGVXEMHFWVKDYHEHHQHQUROOHG6XEMHFWVDOUHDG\FRQVHQWHGZLOOEHDOORZHGWRFRQWLQXHLQ
WKHVWXG\
8SRQVWXG\FRPSOHWLRQWKHLQYHVWLJDWRUZLOOSURYLGHWKHVSRQVRU,5%,(&DQGUHJXODWRU\
DJHQF\ZLWKILQDOUHSRUWVDQGVXPPDULHVDVUHTXLUHGE\UHJXODWLRQV7KHLQYHVWLJDWRUPXVW
VXEPLWDZULWWHQUHSRUWWRWKHVSRQVRUDQGWKH,5%,(&ZLWKLQPRQWKVDIWHUWKHFRPSOHWLRQRU
WHUPLQDWLRQRIWKHVWXG\
 6WXG\6XVSHQVLRQRU7HUPLQDWLRQ
7KHVSRQVRUPD\VXVSHQGRUWHUPLQDWHWKHVWXG\RUSDUWRIWKHVWXG\DWDQ\WLPHIRUDQ\UHDVRQ
6KRXOGWKLVEHQHFHVVDU\VXEMHFWVVKRXOGEHVHHQDVVRRQDVSRVVLEOHDQGWUHDWHGDVGHVFULEHGLQ
6HFWLRQIRUSUHPDWXUHO\ZLWKGUDZQVXEMHFWV7KHLQYHVWLJDWRUPD\EHLQIRUPHGRIDGGLWLRQDO
SURFHGXUHVWREHIROORZHGLQRUGHUWRHQVXUHWKDWDGHTXDWHFRQVLGHUDWLRQLVJLYHQWRWKH
SURWHFWLRQRIWKHVXEMHFW¶VLQWHUHVWV7KHLQYHVWLJDWRUZLOOEHUHVSRQVLEOHIRULQIRUPLQJ,5%V
DQGRU,QGHSHQGHQW(WKLFV&RPPLWWHHV(&VRIWKHHDUO\WHUPLQDWLRQRIWKHVWXG\
,IWKHLQYHVWLJDWRUVXVSHQGVRUWHUPLQDWHVWKHVWXG\WKHLQYHVWLJDWRUZLOOSURPSWO\LQIRUPWKH
VSRQVRUDQGWKH,5%,(&DQGSURYLGHWKHPZLWKDGHWDLOHGZULWWHQH[SODQDWLRQ6XEMHFWVVKRXOG
EHVHHQDVVRRQDVSRVVLEOHDQGWUHDWHGDVGHVFULEHGLQ6HFWLRQIRUSUHPDWXUHO\ZLWKGUDZQ
VXEMHFWV7KHLQYHVWLJDWRUZLOODOVRUHWXUQDOOWHVWDUWLFOHFRQWDLQHUVDQGRWKHUVWXG\PDWHULDOVWR
WKHVSRQVRU
 (7+,&$/&216,'(5$7,216
 5HJXODWRU\DQG(WKLFDO&RPSOLDQFH
7KLVFOLQLFDOVWXG\ZDVGHVLJQHGDQGVKDOOEHLPSOHPHQWHGDQGUHSRUWHGLQDFFRUGDQFHZLWKWKH
,&++DUPRQLVHG7ULSDUWLWH*XLGHOLQHVIRU*RRG&OLQLFDO3UDFWLFH*&3ZLWKDSSOLFDEOHORFDO
UHJXODWLRQVLQFOXGLQJ(XURSHDQ'LUHFWLYH(&86&RGHRI)HGHUDO5HJXODWLRQV&)5
7LWOHDQG-DSDQHVH0LQLVWU\RI+HDOWK/DERUDQG:HOIDUHDQGZLWKWKHHWKLFDOSULQFLSOHV
ODLGGRZQLQWKH'HFODUDWLRQRI+HOVLQNL


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 ,QIRUPHG&RQVHQW3URFHGXUHV
7KHLQYHVWLJDWRUZLOOSURYLGHIRUWKHSURWHFWLRQRIWKHVXEMHFWVE\IROORZLQJDOODSSOLFDEOH
UHJXODWLRQV7KHVHUHJXODWLRQVDUHDYDLODEOHXSRQUHTXHVWIURPWKHVSRQVRU7KH,&)PXVWEH
UHYLHZHGE\WKHVSRQVRUDQGDSSURYHGE\WKH,5%,(&5(%
%HIRUHDQ\SURFHGXUHVVSHFLILHGLQWKHSURWRFRODUHSHUIRUPHGDVXEMHFWPXVW
x %HLQIRUPHGRIDOOSHUWLQHQWDVSHFWVRIWKHVWXG\DQGDOOHOHPHQWVRILQIRUPHGFRQVHQW
x %HJLYHQWLPHWRDVNTXHVWLRQVDQGWLPHWRFRQVLGHUWKHGHFLVLRQWRSDUWLFLSDWH
x 9ROXQWDULO\DJUHHWRSDUWLFLSDWHLQWKHVWXG\
x 6LJQDQGGDWHDQ,5%,(&5(%DSSURYHG,&)

 5HVSRQVLELOLWLHVRIWKH,QYHVWLJDWRUDQG,5%,(&5(%
7KHSURWRFRODQGWKHSURSRVHG,&)PXVWEHUHYLHZHGDQGDSSURYHGE\DSURSHUO\FRQVWLWXWHG
,5%,(&5(%EHIRUHVWXG\VWDUW$VLJQHGDQGGDWHGVWDWHPHQWWKDWWKHSURWRFRODQG,&)KDYH
EHHQDSSURYHGE\WKH,5%,(&5(%PXVWEHJLYHQWRWKHVSRQVRUEHIRUHVWXG\LQLWLDWLRQ3ULRU
WRVWXG\VWDUWWKHLQYHVWLJDWRULVUHTXLUHGWRVLJQDSURWRFROVLJQDWXUHSDJHFRQILUPLQJKLVKHU
DJUHHPHQWWRFRQGXFWWKHVWXG\LQDFFRUGDQFHZLWKWKHVHGRFXPHQWVDQGDOORIWKHLQVWUXFWLRQV
DQGSURFHGXUHVIRXQGLQWKLVSURWRFRODQGWRJLYHDFFHVVWRDOOUHOHYDQWGDWDDQGUHFRUGVWRWKH
VSRQVRUPRQLWRUVDXGLWRUVGHVLJQDWHGDJHQWVRIWKHVSRQVRU,5%V,(&V5(%VDQGUHJXODWRU\
DXWKRULWLHVDVUHTXLUHG,IDQLQVSHFWLRQRIWKHFOLQLFDOVLWHLVUHTXHVWHGE\DUHJXODWRU\DXWKRULW\
WKHLQYHVWLJDWRUPXVWLQIRUPWKHVSRQVRULPPHGLDWHO\WKDWWKLVUHTXHVWKDVEHHQPDGH
 35272&2/$'+(5(1&(
,QYHVWLJDWRUVDVFHUWDLQWKDWWKH\ZLOODSSO\GXHGLOLJHQFHWRDYRLGSURWRFROGHYLDWLRQV8QGHUQR
FLUFXPVWDQFHVVKRXOGWKHLQYHVWLJDWRUFRQWDFWWKHVSRQVRURULWVDJHQWVWRUHTXHVWDSSURYDORID
SURWRFROGHYLDWLRQDVQRDXWKRUL]HGGHYLDWLRQVDUHSHUPLWWHG,IWKHLQYHVWLJDWRUIHHOVDSURWRFRO
GHYLDWLRQZRXOGLPSURYHWKHFRQGXFWRIWKHVWXG\WKLVPXVWEHFRQVLGHUHGDSURWRFRO
DPHQGPHQWDQGXQOHVVVXFKDQDPHQGPHQWLVDJUHHGXSRQE\WKHVSRQVRUDQGDSSURYHGE\WKH
,5%,(&5(%LWFDQQRWEHLPSOHPHQWHG$OOVLJQLILFDQWSURWRFROGHYLDWLRQVZLOOEHUHFRUGHG
DQGUHSRUWHGLQWKHFOLQLFDOVWXG\UHSRUW&65
 3URWRFRO$PHQGPHQWV
$Q\FKDQJHRUDGGLWLRQWRWKHSURWRFROFDQRQO\EHPDGHLQDZULWWHQSURWRFRODPHQGPHQWWKDW
PXVWEHDSSURYHGE\WKHVSRQVRUKHDOWKDXWKRULWLHVZKHUHUHTXLUHGDQGWKH,5%,(&5(%
2QO\DPHQGPHQWVWKDWDUHUHTXLUHGIRUVXEMHFWVDIHW\PD\EHLPSOHPHQWHGSULRUWR
,5%,(&5(%DSSURYDO1RWZLWKVWDQGLQJWKHQHHGIRUDSSURYDORIIRUPDOSURWRFRODPHQGPHQWV
WKHLQYHVWLJDWRULVH[SHFWHGWRWDNHDQ\LPPHGLDWHDFWLRQUHTXLUHGIRUWKHVDIHW\RIDQ\VXEMHFW
LQFOXGHGLQWKLVVWXG\HYHQLIWKLVDFWLRQUHSUHVHQWVDGHYLDWLRQIURPWKHSURWRFRO,QVXFKFDVHV


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

WKHVSRQVRUVKRXOGEHQRWLILHGRIWKLVDFWLRQDQGWKH,5%,(&5(%DWWKHVWXG\VLWHVKRXOGEH
LQIRUPHGZLWKLQZRUNLQJGD\V
 48$/,7<&21752/$1'$6685$1&(
7KHVSRQVRUSHUIRUPVTXDOLW\FRQWURODQGDVVXUDQFHFKHFNVRQDOOFOLQLFDOVWXGLHVWKDWLWVSRQVRUV
%HIRUHHQUROOLQJDQ\VXEMHFWVLQWKLVVWXG\VSRQVRUSHUVRQQHODQGWKHLQYHVWLJDWRUUHYLHZWKH
SURWRFROWKH,%WKH&5)VDQGLQVWUXFWLRQVIRUWKHLUFRPSOHWLRQWKHSURFHGXUHIRUREWDLQLQJ
LQIRUPHGFRQVHQWDQGWKHSURFHGXUHIRUUHSRUWLQJ$(VDQG6$(V$TXDOLILHGUHSUHVHQWDWLYHRI
WKHVSRQVRUPRQLWRUVWKHFRQGXFWRIWKHVWXG\E\YLVLWLQJWKHVLWHDQGE\FRQWDFWLQJWKHVLWHE\
WHOHSKRQHDQGHPDLO'XULQJWKHVHVLWHYLVLWVLQIRUPDWLRQUHFRUGHGLQWKH&5)VLVYHULILHG
DJDLQVWVRXUFHGRFXPHQWV
 ',5(&7$&&(66'$7$+$1'/,1*$1'5(&25'.((3,1*
 ,QYHVWLJDWRU
7KHLQYHVWLJDWRUZLOOSHUPLWVWXG\UHODWHGPRQLWRULQJDXGLWV,5%,(&5(%UHYLHZDQG
UHJXODWRU\LQVSHFWLRQVE\SURYLGLQJGLUHFWDFFHVVWRVRXUFHGDWDDQGGRFXPHQWV
$OOLQIRUPDWLRQZLOOEHUHFRUGHGRQVRXUFHGRFXPHQWV$OOUHTXLUHGGDWDZLOOEHUHFRUGHGLQWKH
H&5)V
,IDQLQYHVWLJDWRUUHWLUHVUHORFDWHVRURWKHUZLVHZLWKGUDZVIURPFRQGXFWLQJWKHVWXG\WKH
LQYHVWLJDWRUPXVWQRWLI\WKHVSRQVRUWRDJUHHXSRQDQDFFHSWDEOHVWRUDJHVROXWLRQ5HJXODWRU\
DJHQFLHVZLOOEHQRWLILHGZLWKWKHDSSURSULDWHGRFXPHQWDWLRQ
$QXSGDWHGIRUPZLOOEHILOHGZLWKWKHVSRQVRUIRUDQ\FKDQJHVLQWKHVWXG\SHUVRQQHO
UHSRUWHGLQWKHFXUUHQWIRUP
 6SRQVRU
7KHGDWDLVHQWHUHGLQWRDQHOHFWURQLFGDWDEDVHYLDH&5)V7KHVSRQVRU¶V0HGLFDO0RQLWRU
UHYLHZVWKHGDWDIRUVDIHW\LQIRUPDWLRQ7KHGDWDLVUHYLHZHGIRUFRPSOHWHQHVVDQGORJLFDO
FRQVLVWHQF\$XWRPDWHGYDOLGDWLRQFKHFNVLGHQWLI\PLVVLQJGDWDRXWRIUDQJHGDWDDQGRWKHU
GDWDLQFRQVLVWHQFLHV7KHFHQWUDOVDIHW\DQGPLFURELRORJ\GDWDZLOOEHSURFHVVHGHOHFWURQLFDOO\
5HTXHVWVIRUGDWDFODULILFDWLRQDUHIRUZDUGHGWRWKHLQYHVWLJDWLYHVLWHIRUUHVROXWLRQ
 68%-(&7,1-85<
,QJHQHUDOVXEMHFWWRVSHFLILFSURYLVLRQVLQWKHFOLQLFDOVWXG\DJUHHPHQW&6$LIDVXEMHFWLV
LQMXUHGDVDGLUHFWUHVXOWRIDWHVWDUWLFOHWKHVSRQVRUZLOOSD\IRUUHDVRQDEOHDQGQHFHVVDU\
PHGLFDOWUHDWPHQWIRUWKHLQMXU\WRWKHH[WHQWWKDWVXFKH[SHQVHVDUHQRWFRYHUHGE\WKHVXEMHFW¶V
PHGLFDOLQVXUDQFHDJRYHUQPHQWSURJUDPRURWKHUUHVSRQVLEOHWKLUGSDUW\,IODZVRU
UHJXODWLRQVRIWKHORFDOLW\LQZKLFKWKHVWXG\LVWDNLQJSODFHUHTXLUHDGGLWLRQDOSD\PHQWRI


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

H[SHQVHVWKHVSRQVRUVKDOOFRPSO\ZLWKVXFKODZVRUUHJXODWLRQV:KHUHDSSOLFDEOHWKHVSRQVRU
KDVWDNHQVSHFLILFQDWLRQDOLQVXUDQFH
 35(678'<'2&80(17$7,21
7KHLQYHVWLJDWRUPXVWSURYLGHWKHVSRQVRUZLWKWKHIROORZLQJGRFXPHQWV%()25(HQUROOLQJDQ\
VXEMHFWV
x &RPSOHWHGDQGVLJQHGIRUP
x $OODSSOLFDEOHFRXQWU\VSHFLILFUHJXODWRU\IRUPV
x &XUUHQWVLJQHGDQGGDWHGFXUULFXODYLWDHIRUWKHLQYHVWLJDWRUVXELQYHVWLJDWRUVDQGRWKHU
LQGLYLGXDOVKDYLQJVLJQLILFDQWLQYHVWLJDWRUUHVSRQVLELOLW\ZKRDUHOLVWHGRQIRUPRU
HTXLYDOHQWRUWKHFOLQLFDOVWXG\LQIRUPDWLRQIRUP
x &RS\RIWKH,5%,(&5(%DSSURYDOOHWWHUIRUWKHSURWRFRODQGLQIRUPHGFRQVHQW$OO
DGYHUWLVLQJUHFUXLWPHQWDQGRWKHUZULWWHQLQIRUPDWLRQSURYLGHGWRWKHVXEMHFWPXVWEH
DSSURYHGE\WKH,5%,(&5(%:ULWWHQDVVXUDQFHRIFRQWLQXLQJDSSURYDODWOHDVWDQQXDOO\
DVZHOODVDFRS\RIWKHDQQXDOSURJUHVVUHSRUWVXEPLWWHGWRWKH,5%,(&5(%PXVWDOVREH
SURYLGHGWRWKHVSRQVRU
x &RS\RIWKH,5%,(&5(%DSSURYHGLQIRUPHGFRQVHQWGRFXPHQWWREHXVHG
x :KHUHDSSOLFDEOHDOLVWRIWKH,5%,(&5(%PHPEHUVDQGWKHLUTXDOLILFDWLRQVDQGD
GHVFULSWLRQRIWKHFRPPLWWHH¶VZRUNLQJSURFHGXUH
x &RS\RIWKHSURWRFROVLJQRIISDJHVLJQHGE\WKHLQYHVWLJDWRU
x )XOO\H[HFXWHG&6$
x :KHUHDSSOLFDEOHDILQDQFLDOGLVFORVXUHIRUP
x $ZULWWHQGRFXPHQWFRQWDLQLQJWKHQDPHORFDWLRQFHUWLILFDWLRQQXPEHUDQGGDWHRI
FHUWLILFDWLRQRIWKHODERUDWRULHVWREHXVHGIRUODERUDWRU\DVVD\VDQGWKRVHRIRWKHUIDFLOLWLHV
FRQGXFWLQJWHVWV7KLVGRFXPHQWVKRXOGEHUHWXUQHGDORQJZLWKWKHVWDWHPHQWRILQYHVWLJDWRU
IRUP7KHVSRQVRUPXVWEHQRWLILHGLIWKHODERUDWRU\LVFKDQJHGRULIDQ\DGGLWLRQDO
ODERUDWRU\LVWREHXVHG
x /LVWRIQRUPDOODERUDWRU\YDOXHVDQGXQLWVRIPHDVXUHIRUDOOODERUDWRU\WHVWVUHTXLUHGE\WKH
SURWRFRO7KLVLVUHTXLUHGIRUHDFKODERUDWRU\WREHXVHGGXULQJWKHVWXG\7KHVSRQVRUPXVW
EHQRWLILHGLIQRUPDOYDOXHVRUXQLWVRIPHDVXUHPHQWFKDQJH

 5(&25'65(7(17,21
7KHLQYHVWLJDWRUVKDOOUHWDLQDQGSUHVHUYHFRS\RIDOOGDWDJHQHUDWHGLQWKHFRXUVHRIWKHVWXG\
VSHFLILFDOO\LQFOXGLQJEXWQRWOLPLWHGWRWKRVHGHILQHGE\*&3DVHVVHQWLDOIRUWKHORQJHURID
\HDUVDIWHUWKHODVWPDUNHWLQJDXWKRUL]DWLRQIRUWKHLQYHVWLJDWLRQDOWHVWDUWLFOHKDVEHHQDSSURYHG
RUWKHVSRQVRUKDVGLVFRQWLQXHGLWVUHVHDUFKZLWKUHVSHFWWRVXFKLQYHVWLJDWLRQDOWHVWDUWLFOHRUE
VXFKORQJHUSHULRGDVUHTXLUHGE\DSSOLFDEOHJOREDOUHJXODWRU\UHTXLUHPHQWV$WWKHHQGRIVXFK
SHULRGWKHLQYHVWLJDWRUVKDOOQRWLI\WKHVSRQVRULQZULWLQJRILWVLQWHQWWRGHVWUR\DOOVXFK


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

PDWHULDO7KHVSRQVRUVKDOOKDYHGD\VWRUHVSRQGWRWKHLQYHVWLJDWRU¶VQRWLFHDQGWKHVSRQVRU
VKDOOKDYHDIXUWKHURSSRUWXQLW\WRUHWDLQVXFKPDWHULDOVDWWKHVSRQVRU¶VH[SHQVH
 38%/,&$7,2132/,&<
7KHVSRQVRUDVVXUHVWKDWWKHNH\GHVLJQHOHPHQWVRIWKLVSURWRFROZLOOEHSRVWHGLQDSXEOLFO\
DFFHVVLEOHGDWDEDVHVXFKDVFOLQLFDOWULDOVJRY,QDGGLWLRQXSRQVWXG\FRPSOHWLRQDQG
ILQDOL]DWLRQRIWKHVWXG\UHSRUWWKHUHVXOWVRIWKLVVWXG\ZLOOEHHLWKHUVXEPLWWHGIRUSXEOLFDWLRQ
DQGRUSRVWHGLQDSXEOLFO\DFFHVVLEOHGDWDEDVHRIFOLQLFDOVWXG\UHVXOWV
8SRQFRPSOHWLRQRIWKHVWXG\WKHLQYHVWLJDWRUPD\SXEOLVKWKHUHVXOWVLQUHFRJQL]HGUHIHUHHG
VFLHQWLILFMRXUQDOVVXEMHFWWRWKHSURYLVLRQVRIWKH&6$8QOHVVRWKHUZLVHVSHFLILHGLQWKH&6$
WKHIROORZLQJSURFHVVVKDOORFFXU
7KHLQVWLWXWLRQDQG3ULQFLSDO,QYHVWLJDWRU3,VKDOOQRWSXEOLVKRUSUHVHQWGDWDIURPDQLQGLYLGXDO
VWXG\FHQWHUXQWLOWKHFRPSOHWHPXOWLFHQWHUVWXG\KDVEHHQSUHVHQWHGLQIXOORUIRU\HDUVDIWHU
WKHWHUPLQDWLRQRIWKHPXOWLFHQWHUVWXG\ZKLFKHYHURFFXUVILUVW6XEVHTXHQWSXEOLFDWLRQVPXVW
UHIHUWRWKHPXOWLFHQWHUILQGLQJV7KHUHDIWHULIWKH3,H[SHFWVWRSDUWLFLSDWHLQWKHSXEOLFDWLRQRI
GDWDJHQHUDWHGIURPWKLVVLWHWKHLQVWLWXWLRQDQG3,VKDOOVXEPLWUHSRUWVDEVWUDFWVPDQXVFULSWV
DQGRURWKHUSUHVHQWDWLRQPDWHULDOVWRWKHVSRQVRUIRUUHYLHZEHIRUHVXEPLVVLRQIRUSXEOLFDWLRQRU
SUHVHQWDWLRQ7KHVSRQVRUVKDOOKDYHGD\VWRUHVSRQGZLWKDQ\UHTXHVWHGUHYLVLRQVLQFOXGLQJ
ZLWKRXWOLPLWDWLRQWKHGHOHWLRQRIFRQILGHQWLDOLQIRUPDWLRQ7KH3,VKDOODFWLQJRRGIDLWKXSRQ
UHTXHVWHGUHYLVLRQVH[FHSWWKDWWKH3,VKDOOGHOHWHDQ\FRQILGHQWLDOLQIRUPDWLRQIURPVXFK
SURSRVHGSXEOLFDWLRQ7KH3,VKDOOGHOD\VXEPLVVLRQRIVXFKSXEOLFDWLRQRUSUHVHQWDWLRQ
PDWHULDOVIRUXSWRDQDGGLWLRQDOGD\VLQRUGHUWRKDYHDSDWHQWDSSOLFDWLRQVILOHG


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 5()(5(1&(6$YDLODEOH8SRQ5HTXHVW
 (0$*XLGHOLQHRQWKHHYDOXDWLRQRIPHGLFDOSURGXFWVLQGLFDWHGIRUWUHDWPHQWRI
EDFWHULDOLQIHFWLRQV(XURSHDQ0HGLFLQHV$JHQF\&303(:3UHY
 (0$$GGHQGXPWRWKHJXLGHOLQHRQWKHHYDOXDWLRQRIPHGLFLQDOSURGXFWVLQGLFDWHG
IRUWUHDWPHQWRIEDFWHULDOLQIHFWLRQV&303(:35HY(XURSHDQ0HGLFLQHV
$JHQF\(0$&+03
 )DUULQJWRQ&30DQQLQJ*7HVW6WDWLVWLFVDQG6DPSOH6L]H)RUPXODHIRU
&RPSDUDWLYH%LQRPLDO7ULDOVZLWK1XOO+\SRWKHVLVRI1RQ]HUR5LVN'LIIHUHQFHRU1RQ
XQLW\5HODWLYH5LVN6WDWLVWLFVLQ0HGLFLQH
 )'$*XLGDQFHIRU,QGXVWU\3RSXODWLRQ3KDUPDFRNLQHWLFV&HQWHUIRU'UXJ
(YDOXDWLRQDQG5HVHDUFK86'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV
 )'$*XLGDQFHIRU,QGXVWU\&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD'HYHORSLQJ
'UXJVIRU7UHDWPHQW&'(5
 )LQH0-$XEOH7(<HDO\'0+DQXVD%+:HLVVIHOG/$6LQJHU'(&ROH\&0
0DUULH7-.DSRRU:1$SUHGLFWLRQUXOHWRLGHQWLI\ORZULVNVXEMHFWVZLWK
FRPPXQLW\DFTXLUHGSQHXPRQLD1(QJO-0HG
 0DQGHOO/$:XQGHULQN5*$Q]XHWR$%DUWOHWW-*&DPSEHOO*''HDQ1&'RZHOO
6))LOH700XVKHU'01LHGHUPDQ067RUUHV$:KLWQH\&*,QIHFWLRXV
'LVHDVHV6RFLHW\RI$PHULFD$PHULFDQ7KRUDFLF6RFLHW\&RQVHQVXV*XLGHOLQHVRQWKH
0DQDJHPHQWRI&RPPXQLW\$FTXLUHG3QHXPRQLDLQ$GXOWV&OLQ,QIHFW'LV66
 0LHWWLQHQ21XUPLQHQ0&RPSDUDWLYHDQDO\VLVRIWZRUDWHV6WDWLVWLFVLQ0HGLFLQH

 1LHGHUPDQ060F&RPEV-68QJHU$1.XPDU$3RSRYLDQ57KHFRVWRI
WUHDWLQJFRPPXQLW\DFTXLUHGSQHXPRQLD&OLQ7KHUS
1RHO*-'UDSHU03+DLW+7DQDND6.$UEHLW5'$UDQGRPL]HG
HYDOXDWRUEOLQGSKDVHVWXG\FRPSDULQJWKHVDIHW\DQGHIILFDF\RIRPDGDF\FOLQHWRWKRVHRI
OLQH]ROLGIRUWUHDWPHQWRIFRPSOLFDWHGVNLQDQGVNLQVWUXFWXUHLQIHFWLRQV$QWLPLFURE$JHQWV
&KHPRWKHU
3DUDWHN3KDUPDFHXWLFDOV,QF2PDGDF\FOLQH37.,QYHVWLJDWRU
V%URFKXUH
(GLWLRQ
3DWHUVRQ'/&ROODWHUDOGDPDJHIURPFHSKDORVSRULQRUTXLQRORQHDQWLELRWLF
WKHUDS\&OLQ,QIHFW'LV6XSSO6


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

6SHOOEHUJ%*XLGRV5*LOEHUW'%UDGOH\-%RXFKHU+:6FKHOG:0%DUWOHWW-*
(GZDUGV-DQGWKH,QIHFWLRXV'LVHDVHV6RFLHW\RI$PHULFD7KHHSLGHPLFRI
DQWLELRWLFUHVLVWDQWLQIHFWLRQVDFDOOWRDFWLRQIRUWKHPHGLFDOFRPPXQLW\IURPWKH,QIHFWLRXV
'LVHDVHV6RFLHW\RI$PHULFD&OLQ,QIHFW'LV
7DOERW*+3RZHUV-+)OHPLQJ756LXFLDN-$%UDGOH\-%RXFKHU+RQEHKDOIRIWKH
&$%3$%666,3URMHFW7HDP3URJUHVVRQ'HYHORSLQJ(QGSRLQWVIRU5HJLVWUDWLRQDO
&OLQLFDO7ULDOVRI&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLDDQG$FXWH%DFWHULDO6NLQDQG
6NLQ6WUXFWXUH,QIHFWLRQV8SGDWH)URPWKH%LRPDUNHUV&RQVRUWLXPRIWKH)RXQGDWLRQIRUWKH
1DWLRQDO,QVWLWXWHVRI+HDOWK&OLQ,QIHFW'LV
7HIODUR)XOO3UHVFULELQJ,QIRUPDWLRQ5HYLVLRQ)RUHVW3KDUPDFHXWLFDOV,QF6W
/RXLV02


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

$SSHQGL[
$OORZHGDQG'LVDOORZHG3ULRU$QWLELRWLFV
$OORZHG$QWLELRWLFV
2QHGRVHZLWKLQKRXUVSULRUWRUDQGRPL]DWLRQ
'LVDOORZHG$QWLELRWLFV
3HQLFLOOLQV
$PR[LFLOOLQ
1DIFLOOLQ
%HQ]DWKLQH3HQLFLOOLQ*3URFDLQH
$PR[LFLOOLQ&ODYXODQDWH
2[DFLOOLQ

$PR[LFLOOLQ6XOEDFWDP
3HQLFLOOLQ*RU9

$PSLFLOOLQ
3LSHUDFLOOLQ

$PSLFLOOLQ6XOEDFWDP
3LSHUDFLOOLQ7D]REDFWDP

'LFOR[DFLOOLQ
7LFDUFLOOLQ&ODYXODQDWH

&HSKDORVSRULQV
&HIDFORU
&HISRGR[LPH
&HIL[LPHPJ
&HIDGUR[LO
&HISUR]LO
&HIWULD[RQH
&HID]ROLQ
&HIWDUROLQH
&HIGLQLU
&HIWD]LGLPH
&HIHSLPH
&HIWLEXWHQ
&HIL[LPHPJ
&HIXUR[LPH
&HIGLWRUHQ
&HSKDOH[LQ
&HIRWD[LPH
/RUDFDUEHI
&DUEDSHQHPV
'RULSHQHP
,PLSHQHP
0HURSHQHP
(UWDSHQHP
*O\FRSHSWLGHV
7HOHYDQFLQ
'DOEDYDQFLQ
9DQFRP\FLQ
2ULWDYDQFLQ
)OXRURTXLQRORQHV
&LSURIOR[DFLQ
/HYRIOR[DFLQ
0R[LIOR[DFLQ
0DFUROLGHV
&ODULWKURP\FLQ
(U\WKURP\FLQ
$]LWKURP\FLQ
&ODULWKURP\FLQ;/
7HWUDF\FOLQHV
'R[\F\FOLQHPJ
0LQRF\FOLQH
'R[\F\FOLQHPJ
0LQRF\FOLQH([WHQGHG5HOHDVH
7LJHF\FOLQH
2[D]ROLGLQRQHV
/LQH]ROLG
7HGL]ROLG
0LVFHOODQHRXV
&OLQGDP\FLQ
0HWURQLGD]ROH
7ULPHWKRSULPVXOIDPHWKR[D]ROH&RWULPR[D]ROH



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

3ULRUZLWKLQKRXUVSULRUWRUDQGRPL]DWLRQDGPLQLVWUDWLRQRISRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWKHUDS\
LVDQH[FOXVLRQFULWHULRQ6HFWLRQKRZHYHUVXEMHFWVPD\EHHOLJLEOHIRUWKHVWXG\GHVSLWHSULRUDQWLPLFURELDO
WKHUDS\LIWKH\UHFHLYHGDVLQJOHGRVHRIDVKRUWDFWLQJV\VWHPLFDQWLELRWLFZLWKLQKRXUVSULRUWRUDQGRPL]DWLRQ
)RUWKHSXUSRVHVRIWKLVSURWRFROVKRUWDFWLQJLVGHILQHGDVKDYLQJDGRVDJHIUHTXHQF\RIPRUHWKDQRQFHDGD\,ID
VXEMHFWUHFHLYHGDSULRUVKRUWDFWLQJV\VWHPLFDQWLELRWLFWKDWLVQRWOLVWHGKHUHWKHLQYHVWLJDWRUPXVWFRQWDFWWKH
0HGLFDO0RQLWRUWRHQVXUHVXEMHFWHOLJLELOLW\


2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

$SSHQGL[
32575LVN&ODVV&DOFXODWLRQ
$GDSWHGIURP)LQHHWDO
6XEMHFW&KDUDFWHULVWLF
3RLQW$VVLJQPHQW
$JH
0DOH
$JH\HDUV
)HPDOH
$JH\HDUV
1XUVLQJKRPHUHVLGHQW

&RH[LVWLQJLOOQHVVHV
1HRSODVWLFGLVHDVH

/LYHUGLVHDVH

&RQJHVWLYHKHDUWIDLOXUH

&HUHEURYDVFXODUGLVHDVH

5HQDOGLVHDVH

3K\VLFDOH[DPLQDWLRQILQGLQJV
$OWHUHGPHQWDOVWDWXV

5HVSLUDWRU\UDWHPLQXWH

6\VWROLFEORRGSUHVVXUHPP+J

7HPSHUDWXUH&)RU&)

3XOVHPLQXWH

/DERUDWRU\DQGUDGLRJUDSKLFILQGLQJV
$UWHULDOS+

%ORRGXUHDQLWURJHQPJG/PPRO/

6RGLXPPPRO/

*OXFRVHPJG/PPRO/

+HPDWRFULW

3DUWLDOSUHVVXUHRIDUWHULDOR[\JHQPP+JRU
R[\JHQVDWXUDWLRQE\SXOVHR[LPHWU\

3OHXUDOHIIXVLRQ

32576FRUH
6XPRIQXPEHUVDERYH


32575LVN&ODVV
32576FRUH
,LQHOLJLEOHIRUVWXG\

,,

,,,

,9

9LQHOLJLEOHIRUVWXG\




2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

 6XEMHFWVWKDWUHVLGHLQDQXUVLQJKRPHRUDVVLVWHGOLYLQJIDFLOLW\WKDWSURYLGHVKRXUPHGLFDOVXSHUYLVLRQDUH
H[FOXGHGIURPWKHVWXG\DQGVKRXOGQRWEHHQUROOHGSHU([FOXVLRQ&ULWHULRQQXPEHU
 1HRSODVWLFGLVHDVHLVGHILQHGDVDQ\FDQFHUH[FHSWEDVDORUVTXDPRXVFHOOFDQFHURIWKHVNLQWKDWZDVDFWLYHDW
WKHWLPHRISUHVHQWDWLRQRUGLDJQRVHGZLWKLQRQH\HDURISUHVHQWDWLRQ6XEMHFWVZLWKQHRSODVWLFOXQJGLVHDVHDUH
H[FOXGHGIURPWKHVWXG\DQGVKRXOGQRWEHHQUROOHGSHU([FOXVLRQ&ULWHULRQQXPEHU
 /LYHUGLVHDVHLVGHILQHGDVDFOLQLFDORUKLVWRORJLFGLDJQRVLVRIFLUUKRVLVRUDQRWKHUIRUPRIFKURQLFOLYHUGLVHDVH
VXFKDVFKURQLFDFWLYHKHSDWLWLV6XEMHFWVZLWKOLYHUWHVWDEQRUPDOLWLHVRUHYLGHQFHRIHQGVWDJHOLYHUGLVHDVHDV
GHILQHGLQ([FOXVLRQ&ULWHULRQQXPEHUVKRXOGQRWEHHQUROOHG
 &RQJHVWLYHKHDUWIDLOXUHLVGHILQHGDVV\VWROLFRUGLDVWROLFYHQWULFXODUG\VIXQFWLRQGRFXPHQWHGE\KLVWRU\
SK\VLFDOH[DPLQDWLRQDQGFKHVWUDGLRJUDSKHFKRFDUGLRJUDPPXOWLSOHJDWHGDFTXLVLWLRQVFDQRUOHIW
YHQWULFXORJUDP6XEMHFWVZLWKDFXWHFRQJHVWLYHKHDUWIDLOXUHDUHH[FOXGHGIURPWKHVWXG\DQGVKRXOGQRWEH
HQUROOHGSHU([FOXVLRQ&ULWHULRQQXPEHU
 &HUHEURYDVFXODUGLVHDVHLVGHILQHGDVDFOLQLFDOGLDJQRVLVRIVWURNHRUWUDQVLHQWLVFKHPLFDWWDFNRUVWURNH
GRFXPHQWHGE\PDJQHWLFUHVRQDQFHLPDJLQJRU&7
 5HQDOGLVHDVHLVGHILQHGDVDKLVWRU\RIFKURQLFUHQDOGLVHDVHRUDEQRUPDOEORRGXUHDQLWURJHQDQGFUHDWLQLQH
FRQFHQWUDWLRQVGRFXPHQWHGLQWKHPHGLFDOUHFRUG6XEMHFWVZKRUHTXLUHGLDO\VLVRUZKRKDYHVHYHUHO\LPSDLUHG
UHQDOIXQFWLRQ&U&OP/PLQDUHH[FOXGHGIURPWKHVWXG\DQGVKRXOGQRWEHHQUROOHGSHU([FOXVLRQ
&ULWHULDQXPEHUVRU
 $OWHUHGPHQWDOVWDWXVLVGHILQHGDVGLVRULHQWDWLRQZLWKUHVSHFWWRSHUVRQSODFHRUWLPHWKDWLVQRWNQRZQWREH
FKURQLFVWXSRURUFRPD




2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

$SSHQGL[
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW
6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQW
&28*+"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RFRXJKRU
UHVROXWLRQWRSUH
&$%3%DVHOLQH
&RXJKSUHVHQWEXW
LWGRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&RXJKSUHVHQW
IUHTXHQWDQGLWGRHV
LQWHUIHUHZLWKVRPH
RIWKHVXEMHFW¶V
XVXDOGDLO\
DFWLYLWLHV
&RXJKLVSUHVHQW
WKURXJKRXWWKHGD\
DQGQLJKWLWOLPLWV
PRVWRIWKH
VXEMHFWV¶XVXDO
GDLO\DFWLYLWLHVDQG
VOHHSSDWWHUQV
3/(85,7,&
&+(673$,1"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RFKHVWSDLQRU
UHVROXWLRQRIFKHVW
SDLQUHODWHGWR
&$%3
&KHVWSDLQSUHVHQW
RFFDVLRQDOO\ZLWK
GHHSEUHDWKLQJEXW
LWGRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&KHVWSDLQLV
SUHVHQWZLWKQRUPDO
EUHDWKVDQGLWGRHV
LQWHUIHUHZLWKWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&KHVWSDLQLV
SUHVHQWDWUHVW
DQGRUZLWKVKDOORZ
EUHDWKLQJLWOLPLWV
PRVWRIWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
6+2571(662)
%5($7+"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RVKRUWQHVVRI
EUHDWKRUUHVROXWLRQ
WRSUH&$%3
%DVHOLQH
6KRUWQHVVRIEUHDWK
ZLWKVWUHQXRXV
DFWLYLWLHVRQO\EXWLW
GRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
6KRUWQHVVRIEUHDWK
ZLWKXVXDODFWLYLWLHV
DQGLWGRHVLQWHUIHUH
ZLWKWKHVXEMHFW¶V
XVXDOGDLO\
DFWLYLWLHV
6KRUWQHVVRIEUHDWK
ZLWKPLQLPDO
H[HUWLRQRUDWUHVW
LWOLPLWVPRVWRIWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
3+/(*0
638780
352'8&7,21"
$EVHQW
0LOG
0RGHUDWH
6HYHUH

1RFRXJKLQJXSRI
SKOHJPVSXWXPRU
UHVROXWLRQWRSUH
&$%3%DVHOLQH
6XEMHFWFRXJKVXS
DVPDOODPRXQWRI
SKOHJPVSXWXP
6XEMHFWFRXJKVXS
DPRGHUDWHDPRXQW
RISKOHJPVSXWXP
6XEMHFWFRXJKVXS
DODUJHDPRXQWRI
SKOHJPVSXWXP



2PDGDF\FOLQH37.

37.&$%3±9HUVLRQ
,1'
2&7
,1'


&21),'(17,$/
35235,(7$5<

3DUDWHN3KDUPD//&

$SSHQGL[
(TXDWLRQVDQG&RQYHUVLRQ)DFWRUV
 &RFNFURIW*DXOWHTXDWLRQWRFDOFXODWHFUHDWLQLQHFOHDUDQFH&U&OUHOHYDQWWR([FOXVLRQ
&ULWHULRQQXPEHU

DJH>\UV@ZHLJKW>NJ@=
= LI0DOH
= LI)HPDOH
&U>PJG/@

 PP /
 FF P/
&RQYHUVLRQRILPPDWXUHQHXWURSKLOVEDQGVLQ./RU.P/WREDQGVUHOHYDQWWR
,QFOXVLRQ&ULWHULRQQXPEHUDQG([FOXVLRQ&ULWHULRQQXPEHU
>EDQGV./WRWDO:%&./@î EDQGV
2U
>EDQGV.P/WRWDO:%&.P/@î EDQGV
&RUWLFRVWHURLGFRQYHUVLRQVUHOHYDQWWR([FOXVLRQ&ULWHULRQQXPEHU
7KHIROORZLQJKDYHHTXLYDOHQWJOXFRFRUWLFRLGDFWLYLW\D
+\GURFRUWLVRQH
PJ
3UHGQLVRQH
PJ
3UHGQLVRORQH
PJ
0HWK\OSUHGQLVRORQH
PJ
7ULDPFLQRORQH
PJ
'H[DPHWKDVRQH
PJ
D$[HOURG/*OXFRFRUWLFRLGWKHUDS\,Q-DPHVRQ-/	'H*URRW/-HGV(QGRFULQRORJ\WKHG3KLODGHOSKLD
3$6DXQGHUV
%ORRGXUHDFRQYHUVLRQWREORRGXUHDQLWURJHQ%81UHOHYDQWWR32575LVN&ODVV
FDOFXODWLRQ
EORRGXUHDLQPPRO/ %81LQPJG/
25
EORRGXUHDLQPJG/ %81LQPJG/




2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



$'0,1,675$7,9(&+$1*(6
3URWRFRO
VHFWLRQ
6XPPDU\RI&KDQJHV
5DWLRQDOH
&RYHUSDJH
&KDQJHRI3DUDWHNDGGUHVV
3DUDWHNPRYHGWRQHZFRUSRUDWHRIILFHVLQ
%RVWRQ0$DQG.LQJRI3UXVVLD3$GXULQJWKH
VXPPHURI
6HFWLRQ
6HFWLRQ
6WHSKHQ9LOODQR0'DGGHGDVDQHPHUJHQF\
FRQWDFWDQGUHSODFHV(YDQ/RK0'DV
6SRQVRU6LJQDWXUH
'U9LOODQRMRLQHG3DUDWHNLQ6HSWHPEHURI
DV9LFH3UHVLGHQWRI&OLQLFDODQG0HGLFDO
$IIDLUV
&/$5,),&$7,216
3URWRFRO
VHFWLRQ
6XPPDU\RI&KDQJHV
5DWLRQDOH
6HFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ
$EEUHYLDWLRQFRUUHFWLRQV
&.FUHDWLQHSKRVSKRNLQDVH
32573QHXPRQLD2XWFRPHV5HVHDUFK7HDP
&RUUHFWLRQV
6HFWLRQ
,Q,QFOXVLRQ&ULWHULRQWKHWH[W³SURWRFRO
VSHFLILF´ZDVDGGHG
7RDOLJQZLWKWKHZRUGLQJRI,QFOXVLRQ&ULWHULRQ
LQ6HFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ

,Q,QFOXVLRQ&ULWHULRQ([FOXVLRQ&ULWHULRQ
DQG6HFWLRQUHIHUHQFHVWR³RUDORU
UHFWDO´DVWKHRQO\DFFHSWDEOHVLWHVRIERG\
WHPSHUDWXUHPHDVXUHPHQWZHUHUHPRYHG
2SHUDWLRQDOFODULILFDWLRQERG\WHPSHUDWXUH
PHDVXUHPHQWVDWERG\VLWHVRWKHUWKDQRUDORU
UHFWDODUHDFFHSWDEOH
6HFWLRQ
6HFWLRQ
6HFWLRQ
$SSHQGL[
,QFOXVLRQ&ULWHULRQDQG([FOXVLRQ&ULWHULRQ
UHIHUWRLPPDWXUHQHXWURSKLOVEDQGIRUPVDVD
SHUFHQWRIWKHWRWDOZKLWHEORRGFHOOFRXQW
:%&+\SHUOLQNHGUHIHUHQFHVWR$SSHQGL[
ZHUHDGGHGWRWKHFULWHULDDQGHTXDWLRQVEHORZ
DGGHGWR$SSHQGL[WRDOORZFRQYHUVLRQRI
EDQGVDQGWRWDO:%&LQ./RU.P/WR
EDQGV

³&RQYHUVLRQRILPPDWXUHQHXWURSKLOVEDQGVLQ
./RU.P/WREDQGV
>EDQGV./WRWDO:%&./@î 
EDQGV
2U
>EDQGV.P/WRWDO:%&.P/@î 
EDQGV´
6RPHVLWH¶VORFDOODERUDWRULHVGRQRWSURYLGH
UHVXOWVIRULPPDWXUHQHXWURSKLOVEDQGVDVD
RIWRWDOZKLWHEORRGFHOOVDVVSHFLILHGLQWKH
LQFOXVLRQH[FOXVLRQFULWHULDWKXVFRQYHUVLRQ
HTXDWLRQVZHUHDGGHGWR$SSHQGL[
6HFWLRQ
6HFWLRQ
([FOXVLRQ&ULWHULRQ
3UHYLRXVZRUGLQJ
³+DVDNQRZQKLVWRU\RIKDYLQJH[SHULHQFHG
XQVWDEOHFDUGLDFGLVHDVHHJXQVWDEOHDQJLQD
P\RFDUGLDOLQIDUFWLRQFRQJHVWLYHKHDUWIDLOXUH
FDUGLDFDUUK\WKPLDHWFZLWKLQWKHPRQWKV
SULRUWR6FUHHQLQJ´
&XUUHQWZRUGLQJ
³+DVDNQRZQKLVWRU\RIKDYLQJH[SHULHQFHG
XQVWDEOHFDUGLDFGLVHDVHHJXQVWDEOHDQJLQD
P\RFDUGLDOLQIDUFWLRQDFXWHFRQJHVWLYHKHDUW
&ODULILFDWLRQRIGHILQLWLRQRIXQVWDEOHFDUGLDF
GLVHDVH


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



IDLOXUHXQVWDEOHFDUGLDFDUUK\WKPLDHWFZLWKLQ
WKHPRQWKVSULRUWR6FUHHQLQJ´
6HFWLRQ
6HFWLRQ
([FOXVLRQ&ULWHULRQ
3UHYLRXVZRUGLQJ
³+LVWRU\RUHYLGHQFHRIVHYHUHUHQDOGLVHDVHRU
LVNQRZQWRKDYHDFDOFXODWHGFUHDWLQLQH
FOHDUDQFH&U&ORIP/PLQXWHXVLQJWKH
&RFNFURIW*DXOWHTXDWLRQVHH$SSHQGL[´
&XUUHQWZRUGLQJ
³+LVWRU\RUHYLGHQFHRIVHYHUHUHQDOGLVHDVHRU
KDVDFDOFXODWHGFUHDWLQLQHFOHDUDQFH&U&ORI
P/PLQXWHXVLQJWKH&RFNFURIW*DXOW
HTXDWLRQVHHHTXDWLRQLQ$SSHQGL[´
&ODULILFDWLRQWKDWH[FOXVLRQPD\EHEDVHGRQ
KLVWRU\RUWKH&U&OPHDVXUHGDW6FUHHQLQJ
6HFWLRQ
6HFWLRQ
([FOXVLRQ&ULWHULRQVHFRQGEXOOHWSRLQW
3UHYLRXVZRUGLQJ
³,QIHFWLRQZLWK+XPDQ,PPXQRGHILFLHQF\9LUXV
+,9DQGDFOXVWHURIGLIIHUHQWLDWLRQ&'
FRXQWFHOOVPPRUDQRWKHU$FTXLUHG
,PPXQH'HILFLHQF\6\QGURPH$,'6GHILQLQJ
LOOQHVV´
&XUUHQWZRUGLQJ
³.QRZQLQIHFWLRQZLWK+XPDQ
,PPXQRGHILFLHQF\9LUXV+,9DQGDFOXVWHURI
GLIIHUHQWLDWLRQ&'FRXQWWKDWLVXQNQRZQRU
GRFXPHQWHGWREHFHOOVPPZLWKLQWKH
ODVW\HDURUDQ$FTXLUHG,PPXQH'HILFLHQF\
6\QGURPH$,'6GHILQLQJLOOQHVV
&ODULILFDWLRQWKDWH[FOXVLRQRIVXEMHFWVZLWK+,9
LVEDVHGRQNQRZQPHGLFDOKLVWRU\DQGQRW
WHVWLQJDWWKHWLPHRIVFUHHQLQJ
6HFWLRQ

([FOXVLRQFULWHULRQ&RUUHFWLRQRIERG\
WHPSHUDWXUHIURP³&´WR³)´
&RUUHFWLRQ
6HFWLRQ
6HFWLRQ
,Q6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHEDQG
6HFWLRQWKHWH[WLQTXRWHVZDVDGGHG³
ZLWKWKHH[FHSWLRQRIWKHEORRGFXOWXUHVDPSOH
FROOHFWLRQDQGUDGLRJUDSKLFFRQILUPDWLRQRI
SQHXPRQLDVKRXOGEHFRPSOHWHGZLWKLQWKH
KRXUVSULRUWRUDQGRPL]DWLRQ7KHEORRGFXOWXUH
VDPSOHFROOHFWLRQDQGUDGLRJUDSKLF
FRQILUPDWLRQRISQHXPRQLDVKRXOGEH
FRPSOHWHGZLWKLQWKHKRXUVSULRUWRWKHILUVW
GRVHRIWHVWDUWLFOH´
&ODULILFDWLRQRIWKHWLPLQJRI6FUHHQLQJ
SURFHGXUHV
6HFWLRQ
6HFWLRQ
6HFWLRQ

³8ULQDO\VLV´ZDVFKDQJHGWR³XULQHWHVWV´LQ
6HFWLRQ6WXG\)ORZFKDUWLQWKHFKDUWDQG
FKDQJHWR³XULQHGLSVWLFNWHVW´LQIRRWQRWHN
6HFWLRQDQG6HFWLRQ
7KHRULJLQDOLQWHQWRIWKHSURWRFROZDVWR
SHUIRUPXULQHGLSVWLFNVFUHHQDVWKHLQLWLDOXULQH
WHVWUDWKHUWKDQXULQDO\VLVWKHUHIRUH
³XULQDO\VLV´ZDVFRUUHFWHGWR³XULQHWHVW´
6HFWLRQ
6HFWLRQ
,Q6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHIDQG
6HFWLRQWKHIROORZLQJZRUGLQJZDV
FKDQJHG
3UHYLRXVZRUGLQJ
³7KH)LQDO)ROORZXSDVVHVVPHQWPD\EH
FRQGXFWHGYLDWHOHSKRQHFRQWDFWRUE\DQRWKHU
LQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUH
FRQVLGHUHGWREH&OLQLFDO6XFFHVVHVDQGKDG
QR$(VQRWHGDWRUDIWHUWKH37(YLVLW´
&XUUHQWZRUGLQJ
&ODULILFDWLRQWKDWWKH)LQDO)ROORZXSYLVLWPXVW
EHFRQGXFWHGLQSHUVRQLIWKHVXEMHFW¶V
ODERUDWRU\RU(&*DEQRUPDOLWLHVDUHEHLQJ
IROORZHGWRUHVROXWLRQDIWHUWKH37(YLVLW


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



³7KH)LQDO)ROORZXSDVVHVVPHQWPD\EH
FRQGXFWHGYLDWHOHSKRQHFRQWDFWRUE\DQRWKHU
LQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUH
FRQVLGHUHGWREH&OLQLFDO6XFFHVVHVDQGKDG
QR$(VRUFOLQLFDOO\VLJQLILFDQWODERUDWRU\RU
(&*DEQRUPDOLWLHVQRWHGDWRUDIWHUWKH37(
YLVLW´
6HFWLRQ
6HFWLRQ
6HFWLRQ
,Q6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHO
6HFWLRQDQG6HFWLRQZRUGLQJZDV
DGGHGWRFODULI\WKDWRUDOWHVWDUWLFOHVXSSOLHV
DUHFRPSOHWHO\EOLQGHGDQGWKXVFDQEH
WUDQVIHUUHGIURPWKHXQEOLQGHGVWXG\SHUVRQQHO
WREOLQGHGVWXG\SHUVRQQHOIRUVWRUDJH
GLVSHQVDWLRQDQGUHFRQFLOLDWLRQ
2SHUDWLRQDOFODULILFDWLRQ
6HFWLRQ
7KHIROORZLQJIRRWQRWHQZDVDGGHGWRWKH
6HFWLRQ6WXG\)ORZFKDUW³9LWDOVLJQVLQFOXGH
ERG\WHPSHUDWXUH%3SXOVHKHDUWUDWHDQG
55´
2SHUDWLRQDOFODULILFDWLRQ
6HFWLRQ
6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHSZDV
FKDQJHGWRSURYLGHIXUWKHULQIRUPDWLRQ
UHJDUGLQJ(&*VRQ'D\GRVHDQG'D\
GRVHRQO\
2SHUDWLRQDOFODULILFDWLRQ
6HFWLRQ
,Q6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHXWKH
IROORZLQJZDVGHOHWHG³DIWHULYRUSRWRWDO
GRVHV´7KHIROORZLQJZRUGLQJZDVDGGHG
³7KHILUVWSRGRVHVKRXOGEHDGPLQLVWHUHGLQ
WKHPRUQLQJKRXUVDIWHUWKHODVWLY
GRVH´
2SHUDWLRQDOFODULILFDWLRQ6XEMHFWVPXVWUHFHLYH
DWOHDVWGD\VRIWUHDWPHQWQRWDVSHFLILF
QXPEHURIGRVHV7KHWLPLQJRIILUVWSRGRVH
ZDVFODULILHG
6HFWLRQ
6HFWLRQ

,Q6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHYDQG
6HFWLRQWKHIROORZLQJZRUGLQJZDV
FKDQJHG
3UHYLRXVZRUGLQJ
³,I6FUHHQLQJEORRGFXOWXUHVDUHSRVLWLYHIRUD
SRWHQWLDOSDWKRJHQEORRGFXOWXUHVPXVWEH
UHSHDWHGDWHDFKYLVLWRUPRUHIUHTXHQWO\LI
FOLQLFDOO\LQGLFDWHGXQWLOQHJDWLYHFXOWXUHVDUH
REWDLQHG´
&XUUHQWZRUGLQJ
³,IEDFWHULDDUHLVRODWHGIURPEDVHOLQHEORRG
FXOWXUHVUHSHDWEORRGFXOWXUHVVKRXOGEH
FROOHFWHGRQWKHGD\WKDWWKHSRVLWLYHEORRG
FXOWXUHLVGHWHFWHG,IVXEVHTXHQWEORRG
FXOWXUHVDUHDOVRSRVLWLYHUHSHDWWKHEORRG
FXOWXUHVDVQHFHVVDU\XQWLOQHJDWLYHEORRG
FXOWXUHVDUHREWDLQHG´
2SHUDWLRQDOFODULILFDWLRQ
6HFWLRQ
,Q6HFWLRQ3URKLELWHG7UHDWPHQWWKH
IROORZLQJZRUGLQJZDVFKDQJHG
3UHYLRXVZRUGLQJ
³/RQJDFWLQJV\VWHPLFDQWLEDFWHULDODJHQWV
SRWHQWLDOO\HIIHFWLYHIRU&$%3DUHSURKLELWHGIRU
KRXUVSULRUWRUDQGRPL]DWLRQDQG
FRQFRPLWDQWO\VHHOLVWLQ$SSHQGL[´
&XUUHQWZRUGLQJ
2SHUDWLRQDOFODULILFDWLRQ


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



³/RQJDFWLQJV\VWHPLFDQWLEDFWHULDODJHQWV
SRWHQWLDOO\HIIHFWLYHIRU&$%3DUHSURKLELWHGIRU
KRXUVSULRUWRUDQGRPL]DWLRQWKURXJK(QGRI
7UHDWPHQW(27H[FHSWLQFDVHVRI&OLQLFDO
)DLOXUHVHHOLVWLQ$SSHQGL[´
6HFWLRQ
6HFWLRQ

6HFWLRQ

,Q6HFWLRQ6HFWLRQ7DEOH
IRRWQRWHEDQGLQ6HFWLRQ7DEOH
$GPLQLVWUDWLRQWKHZRUGLQJLQTXRWHVZDV
DGGHGDQWDFLGVDQGRUPXOWLYLWDPLQV
³FRQWDLQLQJPXOWLYDOHQWFDWLRQVHJDOXPLQXP
PDJQHVLXPFDOFLXPELVPXWKLURQRU]LQF´
&ODULILFDWLRQWKDWRQO\DQWDFLGVPXOWLYLWDPLQV
FRQWDLQLQJPXOWLYDOHQWFDWLRQVDUHUHVWULFWHG
DQGVSHFLILFH[DPSOHVRIPXOWLYDOHQWFDWLRQV
DUHSURYLGHG
6HFWLRQ
,Q6HFWLRQWKHILUVWVHQWHQFHZDVFKDQJHG
DVIROORZV´
3UHYLRXVZRUGLQJ
³8VHRISURDUUK\WKPLFRU47FSURORQJLQJ
PHGLFDWLRQVLVSURKLELWHG´
&XUUHQWZRUGLQJ
³8VHRISURDUUK\WKPLFRU47SURORQJLQJ
PHGLFDWLRQVLVSURKLELWHGWKURXJKWKH)LQDO
)ROORZXSDVVHVVPHQW´
&ODULILFDWLRQ
6HFWLRQ

7KH6HFWLRQZRUGLQJZDVXSGDWHGDV
IROORZV
3UHYLRXVZRUGLQJ
³$XULQHGLSVWLFNZLOOEHSHUIRUPHGGXULQJ
6FUHHQLQJ8ULQH:%&UHVXOWVZLOOEHUHFRUGHG
RQWKHH&5)$XULQHSUHJQDQF\WHVWZLOOEH
SHUIRUPHGGXULQJ6FUHHQLQJIRUDOOZRPHQ
8ULQHZLOODOVREHWHVWHGDW6FUHHQLQJIRUWKH
SUHVHQFHRI/HJLRQHOODSQHXPRSKLODDQG
6WUHSWRFRFFXVSQHXPRQLDHDQWLJHQV´
&XUUHQWZRUGLQJ
$XULQHGLSVWLFNWHVWZLOOEHSHUIRUPHGORFDOO\DW
6FUHHQLQJ8ULQHGLSVWLFNUHVXOWVZLOOEH
UHFRUGHGRQWKHH&5)$XULQHSUHJQDQF\WHVW
ZLOOEHSHUIRUPHGORFDOO\GXULQJ6FUHHQLQJIRU
DOOZRPHQDQGWKHUHVXOWVZLOOEHUHFRUGHGRQ
WKHH&5)8ULQHZLOODOVREHWHVWHGORFDOO\DW
6FUHHQLQJIRUWKHSUHVHQFHRI/HJLRQHOOD
SQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDH
DQWLJHQVDQGWKHUHVXOWVZLOOEHUHFRUGHGRQWKH
H&5)´
2SHUDWLRQDOFODULILFDWLRQV
6HFWLRQ

6HFWLRQ
,Q6HFWLRQLQWKHWKEXOOHWSRLQW
UHJDUGLQJ(&*V³OHDG´DQG³DWWKH'D\
YLVLW´ZHUHDGGHG,Q6HFWLRQLQWKHWKEXOOHW
SRLQW³OHDG´ZDVDGGHG
&RUUHFWLRQVWRDOLJQZLWK6WXG\)ORZFKDUWDQG
6HFWLRQ
6HFWLRQ
6HFWLRQ

6HFWLRQ

6HFWLRQ

6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHX
6HFWLRQ7DEOHIRRWQRWHH6HFWLRQ
VHFRQGEXOOHWSRLQWDQG6HFWLRQ
7DEOHZHUHXSGDWHGWRHPSKDVL]H
WKDWWKHILUVWRUDOWHVWDUWLFOHGRVHPXVWEH
DGPLQLVWHUHGLQWKHPRUQLQJ
7RHQVXUHWKDWVXEMHFWVLQERWKWUHDWPHQWDUPV
UHFHLYHFRQWLQXRXVDFWLYHWHVWDUWLFOHWKHUDS\
DQGWRIDFLOLWDWHWKHIDVWLQJUHTXLUHPHQWVIRU
RPDGDF\FOLQHRUDOGRVLQJ


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



6HFWLRQ

6HFWLRQ

,Q6HFWLRQ7DEOH³DWOHDVWKRXUV´
ZDVDGGHGLQUHIHUHQFHWRWKHUHTXLUHGOHQJWK
RIRYHUQLJKWIDVWLQJSULRUWRPRUQLQJRUDOGRVHV
,Q6HFWLRQ7DEOHWKHIDVWLQJ
UHTXLUHPHQWSULRUWRRPDGDF\FOLQHRUDOGRVLQJ
ZDVFKDQJHGIURP³RYHUQLJKW´WR³DWOHDVW
KRXUV´
&ODULILFDWLRQRIWKHUHTXLUHGOHQJWKRIIDVWLQJ
SULRUWRRPDGDF\FOLQHRUDOGRVHDGPLQLVWUDWLRQ
6HFWLRQ

,Q6HFWLRQ7DEOH2PDGDF\FOLQHRUDO
IRUPXODWLRQH[FLSLHQWVWKHIROORZLQJFRUUHFWLRQV
ZHUHPDGH
FKDQJHGWR
DQG
FKDQJHGWR

7KHVHFKDQJHVDUHFRUUHFWLRQVRID
W\SRJUDSKLFDOHUURUDQGDVSHOOLQJHUURUDQGGR
QRWUHSUHVHQWFKDQJHVLQWKHRPDGDF\FOLQH
RUDOIRUPXODWLRQ
6HFWLRQ
,Q6HFWLRQWKHZRUGLQJLQTXRWHVZDV
DGGHGVXEMHFWFKDUWV³DQGVXEMHFWGLDULHV´
&ODULILFDWLRQWKDWVXEMHFWGLDULHVZLOOEHFKHFNHG
IRUFRPSOLDQFHGXULQJRUDOWUHDWPHQW
6HFWLRQ

,Q6HFWLRQ9LWDO6LJQVLQWKHILUVW
VHQWHQFH³LQIXVLRQ´ZDVFKDQJHGWR³GRVH´
&ODULILFDWLRQWKDWYLWDOVLJQVVKRXOGEHFKHFNHG
SULRUWRHDFKGRVHRQLYWUHDWPHQW6RPH
GRVHVUHTXLUHLQIXVLRQVGXHWRWKHGRXEOH
GXPP\GHVLJQ9LWDOVLJQVGRQRWQHHGWREH
UHFKHFNHGSULRUWRWKHVHFRQGLQIXVLRQJLYHQ
IRUWKHVDPHGRVH
6HFWLRQ

,Q6HFWLRQ+HPDWRORJ\LQ7DEOH
³+HPRJORELQ´ZDVDGGHG
&RUUHFWLRQKHPRJORELQLVEHLQJPHDVXUHGDV
SDUWRIWKHKHPDWRORJ\SDQHO
6HFWLRQ

,Q6HFWLRQ(OHFWURFDUGLRJUDP(&*
DEXOOHWSRLQWIRU³6FUHHQLQJ´ZDVDGGHGWRWKH
OLVWRIYLVLWVZKHQ(&*VZLOOEHSHUIRUPHG
&RUUHFWLRQWRDOLJQZLWKWKH6WXG\)ORZFKDUW
6HFWLRQ

:RUGLQJZDVDGGHGWRUHIOHFWWKDWFROOHFWLRQRI
DVSXWXPRURWKHUUHVSLUDWRU\VSHFLPHQVKRXOG
EH³DWWHPSWHGIURPDOOVXEMHFWV´
3URGXFWLRQRISXUXOHQWVSXWXPLVQRWUHTXLUHG
IRULQFOXVLRQRIDVXEMHFWLQWKHVWXG\3HU
,QFOXVLRQ&ULWHULRQDVXEMHFWPD\KDYHD
FRXJKZLWKRXWSXUXOHQWVSXWXPSURGXFWLRQDQG
VWLOOEHHOLJLEOHIRUWKHVWXG\LIG\VSQHDDQG
SOHXULWLFFKHVWSDLQDUHDOVRSUHVHQW:KLOHDQ
DGHTXDWHTXDOLW\VSXWXPVSHFLPHQPD\QRWEH
REWDLQHGIURPHDFKHOLJLEOHVXEMHFWWKH
FROOHFWLRQVKRXOGEHDWWHPSWHGIURPHDFK
VXEMHFW
6HFWLRQ

:RUGLQJZDVDGGHGWRLQGLFDWHWKDWGHWDLOV
FRQFHUQLQJ*UDPVWDLQVFXOWXUHVDQGFULWHULD
IRULVRODWHVWREHVKLSSHGWRWKH&HQWUDO
/DERUDWRU\DUHVXSSOLHGLQWKH/RFDO5HJLRQDO
&OLQLFDO0LFURELRORJ\/DERUDWRU\0DQXDO
2SHUDWLRQDOFODULILFDWLRQDVWKHUHDUHERWK
ORFDOUHJLRQDODQGFHQWUDOFOLQLFDOPLFURELRORJ\
ODERUDWRU\PDQXDOVIRUWKHVWXG\
6HFWLRQ

7KHZRUGLQJ³DQGWKHUHVXOWVZLOOEHUHFRUGHG
RQWKHH&5)´ZDVDGGHG
2SHUDWLRQDOFODULILFDWLRQ
6HFWLRQ

2QHRIWKHFULWHULDIRU&OLQLFDO)DLOXUHEXOOHW
SRLQWDWWKH(DUO\&OLQLFDO5HVSRQVH
$VVHVVPHQWZDVFODULILHGDVIROORZV
3UHYLRXVZRUGLQJ
³'LVFRQWLQXHGVWXG\WKHUDS\GXHWRDQ$(SULRU
WR(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW´
&XUUHQWZRUGLQJ
³'LVFRQWLQXHGVWXG\WKHUDS\GXHWRDQ$(DQG
UHFHLYHGDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU
&$%3SULRUWRWKH(DUO\&OLQLFDO5HVSRQVH
DVVHVVPHQW´
&ODULILFDWLRQ


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



6HFWLRQ

7KHIROORZLQJVHQWHQFHVZHUHUHPRYHGIURP
WKHILUVWSDUDJUDSK
³2QO\VXEMHFWVGHWHUPLQHGWREHD&OLQLFDO
6XFFHVVDW(27RU,QGHWHUPLQDWHGXHWR
PLVVLQJWKH(27YLVLWZLOOEHFRQVLGHUHGIRU
HYDOXDWLRQDV&OLQLFDO6XFFHVVDW37(
6XEMHFWVDVVHVVHGDV&OLQLFDO)DLOXUHVDW(27
RU,QGHWHUPLQDWHIRUUHDVRQVRWKHUWKDQ
PLVVLQJWKH(27YLVLWZLOOKDYHWKLVRXWFRPH
FDUULHGIRUZDUG´
7KH³FDUU\LQJIRUZDUG´RIFOLQLFDORXWFRPHVIRU
WKHDQDO\VLVRIWKH,QYHVWLJDWRU¶V$VVHVVPHQW
RI&OLQLFDO5HVSRQVHLVGLVFXVVHGLQ6HFWLRQ
7DEOHDQGLQWKH6$37KH
LQYHVWLJDWRUVKRXOGDVVHVVWKHVXEMHFWIRU
&OLQLFDO5HVSRQVHDW37(DFFRUGLQJWRWKH
FULWHULDOLVWHGLQ6HFWLRQ
6HFWLRQ
,Q6HFWLRQ6HULRXV$GYHUVH(YHQW
5HSRUWLQJWKHZRUGLQJLQTXRWHVZDVDGGHG
PXVWEHUHSRUWHGZLWKLQEXVLQHVVGD\³RU
KRXUVDVUHTXLUHGE\ORFDOUHJXODWLRQV´
7RFRPSO\ZLWKUHJLRQDOUHJXODWRU\
UHTXLUHPHQWV
6HFWLRQ
,QWKHWKLUGSDUDJUDSKWKHIROORZLQJZDV
FKDQJHG³6%3PP+J´FRUUHFWHGWR
³6%3!PP+J´
&RUUHFWLRQ
6HFWLRQ
,Q6HFWLRQ5HVRXUFH8WLOL]DWLRQEXOOHW
SRLQWWKHZRUGV³SHUW\SHRIIDFLOLW\´ZHUH
UHPRYHG
7KHYDULDEOH³GXUDWLRQGD\VDQGQXPEHURI
RXWSDWLHQWLYGRVHVWHVWDUWLFOH´ZLOOEH
DQDO\]HGEXWQRWSHUW\SHRIIDFLOLW\
6HFWLRQ
,Q6HFWLRQLQWKHILUVWVHQWHQFHRIWKH
VHFRQGSDUDJUDSK³ZLOOUHFHLYHWHVWDUWLFOHTK
IRUWKHILUVWGRVHV´ZDVFKDQJHGWR³ZLOO
UHFHLYHWHVWDUWLFOHTKIRUWKHILUVWGRVHV´
&RUUHFWLRQ
6HFWLRQ
,Q6HFWLRQ(PHUJHQF\8QEOLQGLQJRI
7UHDWPHQW$VVLJQPHQWWKHZRUGLQJRIWKHODVW
VHQWHQFHLQSDUDJUDSKZDVFKDQJHGDV
IROORZV
3UHYLRXVZRUGLQJ
³,WLVVWURQJO\HQFRXUDJHGIRUWKHLQYHVWLJDWRU
ZKHQFRQWHPSODWLQJXQEOLQGLQJWRFRQWDFWWKH
VSRQVRURUVSRQVRU¶VGHVLJQDWHG0HGLFDO
0RQLWRURUGHVLJQHHWRFRQILUPWKHQHHGWR
XQEOLQGSULRUWRXQEOLQGLQJ´
&XUUHQWZRUGLQJ
³,WLVHQFRXUDJHGIRUWKHLQYHVWLJDWRUZKHQ
FRQWHPSODWLQJXQEOLQGLQJWRFRQWDFWWKH
VSRQVRURUVSRQVRU¶VGHVLJQDWHG0HGLFDO
0RQLWRURUGHVLJQHHWRFRQILUPWKHQHHGWR
XQEOLQGSULRUWRXQEOLQGLQJ+RZHYHULI
UHTXLUHGWKHLQYHVWLJDWRUFDQXQEOLQGZLWKRXW
FRQVXOWLQJWKH0HGLFDO0RQLWRU´
7RFRPSO\ZLWKUHJLRQDOUHJXODWRU\
UHTXLUHPHQWV
6HFWLRQ
,Q6HFWLRQ6WXG\&RPSOHWLRQDQG3RVW
6WXG\7HVW$UWLFOHWKHIROORZLQJVHQWHQFHZDV
GHOHWHG³$VDPSOHRIWKLVILQDOVWXG\UHSRUWFDQ
EHIRXQGLQWKH6WXG\5HIHUHQFH0DQXDO´
2SHUDWLRQDOFKDQJH
6HFWLRQ
,Q6HFWLRQ5HFRUGV5HWHQWLRQUHIHUHQFHV
WR³VWXG\GUXJ´ZHUHFKDQJHGWR
³LQYHVWLJDWLRQDOWHVWDUWLFOH´
&ODULILFDWLRQ
$SSHQGL[
7KH32575LVN&ODVV&DOFXODWLRQWDEOHZDV
FRUUHFWHGVLPSOLILHGDQGIRRWQRWHVZHUHDGGHG
IRUFODULILFDWLRQRIFULWHULDWKDWHIIHFWVXEMHFW
HOLJLELOLW\IRUWKHVWXG\
&RUUHFWLRQVWRDOLJQZLWKWKH3257VFRUH
GHWHUPLQDWLRQFULWHULDLQ)LQHHWDO1(-0
DQGFODULILFDWLRQVWRSURYLGHJXLGDQFHWR
LQYHVWLJDWRUV


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



$SSHQGL[
7KHWLWOHRI$SSHQGL[³(TXDWLRQVDQG
&RQYHUVLRQV´ZDVFKDQJHGWR³(TXDWLRQVDQG
&RQYHUVLRQ)DFWRUV´DQGUHIHUHQFHVWRWKH
,QFOXVLRQRU([FOXVLRQ&ULWHULDWKDWWKHHTXDWLRQ
RUFRQYHUVLRQIDFWRUVDUHUHOHYDQWWRZHUH
SURYLGHG
&ODULILFDWLRQ
$SSHQGL[
&RQYHUVLRQHTXDWLRQVIURPEORRGXUHDWREORRG
XUHDQLWURJHQ%81ZHUHDGGHG
6RPHVLWH¶VORFDOODERUDWRULHVUHSRUWRQO\EORRG
XUHDKRZHYHU%81LVUHTXLUHGIRUWKH
FDOFXODWLRQRI3257VFRUHV
02',),&$7,216
3URWRFRO
VHFWLRQ
6XPPDU\RI&KDQJHV
5DWLRQDOH
6HFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ
3XOVHR[LPHWU\PHDVXUHPHQWRIR[\JHQ
VDWXUDWLRQZDVDGGHGDVDQDFFHSWDEOHPHWKRG
WRGHWHUPLQHK\SR[HPLD

,Q6HFWLRQDQG6HFWLRQWKHZRUGLQJRI
,QFOXVLRQ&ULWHULRQZDVFKDQJHGDVIROORZV
3UHYLRXVZRUGLQJ
+\SR[HPLDSDUWLDOSUHVVXUHRIDUWHULDO
R[\JHQ>3D2@PP+JE\DUWHULDOEORRG
JDV$%*
&XUUHQWZRUGLQJ
+\SR[HPLDSDUWLDOSUHVVXUHRIDUWHULDO
R[\JHQ>3D2@PP+JE\DUWHULDOEORRG
JDV>$%*@RUR[\JHQVDWXUDWLRQE\
SXOVHR[LPHWU\

,Q6HFWLRQLQWKH6WXG\)ORZFKDUWWKHURZ
KHDGLQJ“PORT Risk Class, ABGj” was changed 
to “PORT Risk Class, ABG or pulse oximetryj”. 
 
In Section 14.2 the 12th bullet point was 
changed from “ABG and PORT Risk Class 
Assessment” to “ABG (or pulse oximetry) and 
PORT Risk Class Assessment”.

,Q6HFWLRQ³3D2!PP+JE\$%*´
ZDVFKDQJHGWR³3D2PP+JE\$%*RU
R[\JHQVDWXUDWLRQE\SXOVHR[LPHWU\´
7KHRULJLQDO3257VWXG\DOORZHGIRUSXOVH
R[LPHWU\DVDQDFFHSWDEOHDOWHUQDWLYHWR$%*
)LQHHWDO1(-0
6HFWLRQ
6HFWLRQ
,QFOXVLRQ&ULWHULRQ
3UHYLRXVZRUGLQJ
³)HPDOHVPXVWKDYHDQHJDWLYHXULQH
SUHJQDQF\WHVWDW6FUHHQLQJDQGDJUHHWR
FRPSO\ZLWKXVLQJDKLJKO\HIIHFWLYHIRUPRI
ELUWKFRQWUROHJDEVWLQHQFHSRFRQWUDFHSWLYH
LQWUDXWHULQHGHYLFH>,8'@EDUULHUFRQWUDFHSWLRQ
>FRQGRP@WXEDOOLJDWLRQK\VWHUHFWRP\ELODWHUDO
RRSKRUHFWRP\RUYDVHFWRPL]HGSDUWQHUIURP
6FUHHQLQJWKURXJKSRVWWKHUDS\HYDOXDWLRQ
37(0DOHVPXVWDJUHHWRXVHDKLJKO\
HIIHFWLYHPHWKRGRIELUWKFRQWUROZLWKIHPDOH
$³KLJKO\HIIHFWLYHPHWKRG´FKDQJHGWR³DQ
DFFHSWDEOHPHWKRG´EHFDXVHRIGLIIHUHQW
UHJLRQDOGHILQLWLRQVRIKLJKO\HIIHFWLYHPHWKRGV
RIELUWKFRQWURO

3RVWPHQRSDXVDODGGHGDVDPHWKRGRIELUWK
FRQWURO


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



SDUWQHUVDQGPXVWQRWGRQDWHVSHUPIURP
6FUHHQLQJWKURXJK37(´
&XUUHQWZRUGLQJ
³)HPDOHVPXVWKDYHDQHJDWLYHXULQH
SUHJQDQF\WHVWDW6FUHHQLQJDQGDJUHHWR
FRPSO\ZLWKXVLQJDQDFFHSWDEOHPHWKRGRI
ELUWKFRQWURODVSHU\RXUORFDOUHTXLUHPHQWVHJ
DEVWLQHQFHSRFRQWUDFHSWLYHLQWUDXWHULQH
GHYLFH>,8'@EDUULHUFRQWUDFHSWLRQ>FRQGRP@
WXEDOOLJDWLRQK\VWHUHFWRP\ELODWHUDO
RRSKRUHFWRP\SRVWPHQRSDXVDORU
YDVHFWRPL]HGSDUWQHUIURP6FUHHQLQJWKURXJK
SRVWWKHUDS\HYDOXDWLRQ37(0DOHVPXVW
DJUHHWRXVHDQDFFHSWDEOHPHWKRGRIELUWK
FRQWUROZLWKIHPDOHSDUWQHUVDQGPXVWQRW
GRQDWHVSHUPIURP6FUHHQLQJWKURXJK37(´
6HFWLRQ
6HFWLRQ
([FOXVLRQ&ULWHULRQ
3UHYLRXVZRUGLQJ
³$UHGLDJQRVHGZLWKORQJFRUUHFWHG47LQWHUYDO
47FV\QGURPHXVHGUXJVRISRWHQWLDO
SURDUUK\WKPLFRU47FSURORQJLQJHIIHFWDQGRU
SUHVHQWZLWKWDFK\DUUK\WKPLD´
&XUUHQWZRUGLQJ
³+DVD47LQWHUYDOFRUUHFWHGIRUKHDUWUDWH
XVLQJ)ULGHULFLD¶VIRUPXOD47F)!PVHF
PDOHVRU!PVHFIHPDOHVDUHNQRZQWR
KDYHORQJ47V\QGURPHXVHGUXJVRISRWHQWLDO
SURDUUK\WKPLFRU47SURORQJLQJHIIHFWDQGRU
SUHVHQWZLWKWDFK\DUUK\WKPLD´
6SHFLILF47LQWHUYDOWKUHVKROGVZHUHDGGHGIRU
FODULILFDWLRQ
6HFWLRQ
6HFWLRQ
$SSHQGL[
([FOXVLRQ&ULWHULRQWKLUGEXOOHWSRLQW
5HJDUGLQJWKHUHFHLSWRIFRUWLFRVWHURLGV
HTXLYDOHQWWRSUHGQLVRQHDUHIHUHQFHDQG
K\SHUOLQNWR$SSHQGL[ZDVDGGHG

7KHIROORZLQJFKDUWZDVDGGHGWR$SSHQGL[
³&RUWLFRVWHURLGFRQYHUVLRQVUHOHYDQWWR
([FOXVLRQ&ULWHULRQQXPEHU
7KHIROORZLQJKDYHHTXLYDOHQW
JOXFRFRUWLFRLGDFWLYLW\
+\GURFRUWLVRQH
PJ
3UHGQLVRQH
PJ
3UHGQLVRORQH
PJ
0HWK\OSUHGQLVRORQH
PJ
7ULDPFLQRORQH
PJ
'H[DPHWKDVRQH
PJ
³
7RSURYLGHJXLGDQFHWRLQYHVWLJDWRUV
6HFWLRQ
6HFWLRQ
([FOXVLRQFULWHULRQ
$GGHGNQRZQRUVXVSHFWHG³DFWLYH
WXEHUFXORVLV´
/LVWHGLQWKH)'$&$%3'UDIW*XLGDQFH
DVDUHFRPPHQGHGH[FOXVLRQ


2PDGDF\FOLQH37.±,1'V

-DQXDU\
3DUDWHN3KDUPDFHXWLFDOV,QF

37.&$%3
6XPPDU\RI&KDQJHV
)LQDO9HUVLRQWR)LQDO9HUVLRQ



6HFWLRQ
6HFWLRQ
6HFWLRQ
7KH6DIHW\SRSXODWLRQGHILQLWLRQZDVXSGDWHG
3UHYLRXVZRUGLQJ
³7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOO
UDQGRPL]HGVXEMHFWVZKRUHFHLYHDWOHDVWRQH
GRVHWHVWDUWLFOH´
&XUUHQWZRUGLQJ
³7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOO
UDQGRPL]HGVXEMHFWVZKRUHFHLYHWHVWDUWLFOH´
6XEMHFWVZKRUHFHLYHDQ\DPRXQWRIWHVW
DUWLFOHLQFOXGLQJOHVVWKDQRQHFRPSOHWHGRVH
ZLOOEHLQFOXGHGLQWKH6DIHW\SRSXODWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ

,Q6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHO
6HFWLRQDQG6HFWLRQWKHIROORZLQJ
ZDVDGGHG
³6XEMHFWVVKRXOGUHFHLYHWKHLUILUVWGRVHRIWHVW
DUWLFOHZLWKLQKRXUVDIWHUUDQGRPL]DWLRQ´
2SHUDWLRQDOFKDQJHWRHQVXUHWKDWVXEMHFWV
UHFHLYHWLPHO\WUHDWPHQWIRUWKHLULQIHFWLRQ
6HFWLRQ
6HFWLRQ
6HFWLRQ6WXG\)ORZFKDUWIRRWQRWHWDQG
6HFWLRQZHUHXSGDWHGWRUHIOHFWWKDWEORRG
VDPSOHVIRU3.DQDO\VLVZLOOEHFROOHFWHGRQ
'D\VWR
2SHUDWLRQDOFKDQJHLQWKH3RSXODWLRQ3.
VDPSOHVFKHGXOH
6HFWLRQ
6HFWLRQ

,Q6HFWLRQ6WXG\)ORZFKDUW6WXG\)ORZFKDUW
IRRWQRWHZDQG6HFWLRQODQJXDJHZDV
DGGHGWRLQGLFDWHWKDWDWWKH37(YLVLWD
UHVSLUDWRU\VSHFLPHQFXOWXUHDQG*UDPVWDLQ
VKRXOGEHREWDLQHGRQO\IRUVXEMHFWVZKRDUH
FOLQLFDOIDLOXUHVDQGUHTXLUHDOWHUQDWLYH
DQWLEDFWHULDOWUHDWPHQWIRUWKHLQIHFWLRQXQGHU
VWXG\
7RDVVHVVZKHWKHULQIHFWLRQVSUHVHQWDWWKH
37(YLVLWDUHFDXVHGE\SHUVLVWHQFHRIWKH
RULJLQDOSDWKRJHQFDXVHGE\DSDWKRJHQ
UHVLVWDQWWRHLWKHUWHVWDUWLFOHFDXVHGE\DQHZ
SDWKRJHQHWF
6HFWLRQ
6HFWLRQ

,Q6HFWLRQ6WXG\)ORZFKDUWDQG6HFWLRQ
8ULQHDQWLJHQVFUHHQLQJIRU/HJLRQHOOD
SQHXPRSKLODDQG6WUHSWRFRFFXVSQHXPRQLDH
ZDVUHPRYHGDWWKH37(YLVLW
8ULQHDQWLJHQWHVWLQJLVXVHIXORQO\DVDQLQLWLDO
QRQTXDQWLWDWLYHGLDJQRVWLFWHVW)ROORZXS
DQWLJHQWHVWVGRQRWSURYLGHDGGLWLRQDO
LQIRUPDWLRQHJQRLPSDFWRQFOLQLFDO
PDQDJHPHQWRUWUHDWPHQW
6HFWLRQ

,Q6HFWLRQWKHFULWHULDIRUDQDGHTXDWH
TXDOLW\VSXWXPVSHFLPHQZHUHFKDQJHG
3UHYLRXVZRUGLQJ
³6TXDPRXVHSLWKHOLDOFHOOVORZSRZHU
ILHOGOSILHî
!3RO\PRUSKRQXFOHDUFHOOVOSILHî´
&XUUHQWZRUGLQJ
³6TXDPRXVHSLWKHOLDOFHOOVORZSRZHU
ILHOGOSILHî
!3RO\PRUSKRQXFOHDUFHOOVOSILHî´
7RDOLJQZLWKVWDQGDUGFOLQLFDOSUDFWLFHDQGWKH
)'$&$%3'UDIW*XLGDQFH
6HFWLRQ
,Q6HFWLRQ6DPSOH6L]H&DOFXODWLRQ
SDUDJUDSKWKHIROORZLQJVHQWHQFHZDV
UHPRYHG³1RFOLQLFDOVWXG\KDVEHHQ
FRQGXFWHGXVLQJ(DUO\&OLQLFDO5HVSRQVHDV
WKHSULPDU\HIILFDF\RXWFRPH´7KHIROORZLQJ
VHQWHQFHZDVDGGHG³,QDGGLWLRQDUHFHQW
FOLQLFDOVWXG\RIRUDOVROLWKURP\FLQFRPSDUHGWR
PR[LIOR[DFLQIRXQGRIVXEMHFWVKDGDQ
(DUO\&OLQLFDO5HVSRQVHUDWHRIVXFFHVV´
8SGDWH7KHUHVXOWVRI&HPSUD¶VVROLWKURP\FLQ
RUDO&$%3VWXG\ZHUHUHSRUWHGDIWHUWKH
ILQDOL]DWLRQRI9RIWKLVSURWRFRO



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
6WDWLVWLFDO$QDO\VLV3ODQ37.&$%3
6WXG\7LWOH
$3KDVH5DQGRPL]HG'RXEOH%OLQG
0XOWL&HQWHU6WXG\WR&RPSDUHWKH6DIHW\DQG
(IILFDF\RI2PDGDF\FOLQH,932WR
0R[LIOR[DFLQ,932IRU7UHDWLQJ$GXOW
6XEMHFWVZLWK&RPPXQLW\$FTXLUHG%DFWHULDO
3QHXPRQLD&$%3
6WXG\1XPEHU
37.&$%3
6WXG\3KDVH

6SRQVRU
3DUDWHN3KDUPD//&
$ZKROO\RZQHGVXEVLGLDU\RI3DUDWHN
3KDUPDFHXWLFDOV,QF
3DUN3OD]DWK)ORRU
%RVWRQ0$86$
7HO
9HUVLRQ
)LQDO
'DWH
0$5









&RQILGHQWLDOLW\6WDWHPHQW
7KLVGRFXPHQWFRQWDLQVFRQILGHQWLDODQGSURSULHWDU\LQIRUPDWLRQDQGLVQRWWR
EHGLVWULEXWHGWRDQ\WKLUGSDUW\



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

7$%/(2)&217(176
 
7$%/(2)&217(176 
/,672)7$%/(6 
/,672)$33(1',&(6 
 
/,672)$%%5(9,$7,216$1''(),1,7,2162)7(506 
 
,1752'8&7,21 
 
75,$/2%-(&7,9(6 
 
3ULPDU\2EMHFWLYHV 
 
6HFRQGDU\2EMHFWLYHV 
 
678'<'(6,*1&216,'(5$7,216 
 
6WXG\'HVLJQ 
 
6DPSOH6L]H 
 
5DQGRPL]DWLRQDQG0DVNLQJ 
 
(IILFDF\0HDVXUHV 
 
3ULPDU\(IILFDF\2XWFRPH 
 
6HFRQGDU\(IILFDF\2XWFRPHV 
 
,QYHVWLJDWRUV$VVHVVPHQWRI&OLQLFDO5HVSRQVH 
 
0LFURELRORJLF2XWFRPHV 
 
6DIHW\0HDVXUHV 
 
3KDUPDFRNLQHWLF3DUDPHWHUV 
 
678'<3238/$7,216 
 
$QDO\VLV3RSXODWLRQV 
 
,QWHQWWR7UHDW,773RSXODWLRQ 
 
6DIHW\3RSXODWLRQ 
 
0LFURELRORJLFDO,QWHQWWR7UHDWPLFUR,773RSXODWLRQ 
 
&OLQLFDOO\(YDOXDEOH&(3RSXODWLRQV 
 
'LDJQRVLVRI&$%3 
 
3ULRU$QWLELRWLF7KHUDS\ 
 
&RQFRPLWDQW$QWLELRWLF7KHUDS\ 
 
7HVW$UWLFOH7KHUDS\ 
 
&OLQLFDO2XWFRPH$VVHVVPHQW 
 
%DVHOLQH0HGLFDO(YHQWV 
 
0LFURELRORJLFDOO\(YDOXDEOH0(3RSXODWLRQV 
 
(YDOXDELOLW\5HYLHZ7HDP 
 
0HPEHUVKLSDQG5HVSRQVLELOLWLHV 
 
3URFHVVIRU'HWHUPLQLQJ,QFOXVLRQLQ3RSXODWLRQV 
 
6XEJURXSV 
 
&+$1*(6,1&21'8&7253/$11('$1$/<6(6)5207+(35272&2/ 


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 
29(5$//67$7,67,&$/&216,'(5$7,216 
 
*HQHUDO&RQYHQWLRQV 
 
%DVHOLQH'HILQLWLRQ 
 
+DQGOLQJRI0LVVLQJ'DWD 
 
,QWHULP$QDO\VLV 
 
3RROLQJ6WUDWHJ\IRU6WXG\6LWHV 
 
9LVLW:LQGRZV8QVFKHGXOHG9LVLWV 
 
67$7,67,&$/$1$/<6,60(7+2'6 
 
6XEMHFW'LVSRVLWLRQ 
 
'HPRJUDSKLFVDQG%DVHOLQH&KDUDFWHULVWLFV 
 
0LFURELRORJ\ 
 
7UHDWPHQW&RPSOLDQFHDQG([SRVXUH 
 ()),&$&<3$5$0(7(56 
 
3ULPDU\$QDO\VLV 
 
6HQVLWLYLW\DQG$GGLWLRQDO$QDO\VHVRIWKH3ULPDU\(IILFDF\2XWFRPH 
 
6HFRQGDU\$QDO\VLV 
 
$GGLWLRQDO$QDO\VHV 
 
,QWHULP$QDO\VLV 
 
6XEJURXS$QDO\VHV 
 6$)(7<$1'72/(5$%,/,7< 
 
$GYHUVH(YHQWV 
 
9LWDO6LJQV 
 
(OHFWURFDUGLRJUDP 
 
/DERUDWRU\9DOXHV 
 
3K\VLFDO([DPLQDWLRQV 
 5(6285&(87,/,=$7,21$1$/<6(6 
 27+(55(/(9$17'$7$$1$/<6(66800$5,(6 
 
3URWRFRO'HYLDWLRQV 
 
3ULRUDQG&RQFRPLWDQW0HGLFDWLRQV 
 5()(5(1&(6 
 $33(1',&(6 



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
/,672)7$%/(6
7DEOH 
6DPSOH6L]HDQG3RZHU&DOFXODWLRQV 
7DEOH 
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\
*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQW 
7DEOH 
,QYHVWLJDWRU
V$VVHVVPHQWRI&OLQLFDO5HVSRQVH 
7DEOH 
3HU3DWKRJHQ0LFURELRORJLFDO5HVSRQVH'HILQLWLRQVDWWKH(27DQG37(
9LVLWV 
7DEOH 
3HU3DWKRJHQ0LFURELRORJLF5HVSRQVH 
7DEOH 
0LFURELRORJLFDO5HVSRQVH'HILQLWLRQV6XSHULQIHFWLRQRU1HZ,QIHFWLRQ 
7DEOH 
6FKHGXOHG6WXG\9LVLWV 
7DEOH 
&ULWHULDIRU7UHDWPHQW(PHUJHQW&OLQLFDOO\1RWDEOH9LWDO6LJQV 
7DEOH 
/DERUDWRU\3DUDPHWHUVDQG2UJDQ&ODVV 

/,672)$33(1',&(6
$SSHQGL[ 
6FKHGXOHRI$VVHVVPHQWVDQG3URFHGXUHV 
$SSHQGL[ 
6XPPDU\RI(IILFDF\$QDO\VHV 
$SSHQGL[ 
$GYHUVH(YHQWDQG3ULRU&RQFRPLWDQW0HGLFDWLRQ'DWH,PSXWDWLRQV 
$SSHQGL[ 
'LUHFWLRQDOLW\RI:RUVW/DERUDWRU\3DUDPHWHUV 
$SSHQGL[ 
0RGLILHG'LYLVLRQRI0LFURELRORJ\DQG,QIHFWLRXV'LVHDVHV$GXOW
7R[LFLW\7DEOH 




2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

/,672)$%%5(9,$7,216$1''(),1,7,2162)7(506
$&0
DOOFDXVHPRUWDOLW\
$(
DGYHUVHHYHQW
%0,
ERG\PDVVLQGH[
&$%3
FRPPXQLW\DFTXLUHGEDFWHULDOSQHXPRQLD
&,
FRQILGHQFHLQWHUYDO
&(
FOLQLFDOO\HYDOXDEOH
&1
FOLQLFDOO\QRWDEOH
&7
FRPSXWHGWRPRJUDS\
&;5
FKHVW;UD\
H&5)
HOHFWURQLFFDVHUHSRUWIRUP
(&5
(DUO\&OLQLFDO5HVSRQVH
(0$
(XURSHDQ0HGLFLQHV$JHQF\
(27
(QGRI7UHDWPHQW
)'$
)RRGDQG'UXJ$GPLQLVWUDWLRQ
,1'
,QYHVWLJDWLRQDO1HZ'UXJ
,5%
,QVWLWXWLRQDO5HYLHZ%RDUG
,9
LQWUDYHQRXV
,[56
,QWHUDFWLYH5HVSRQVH6\VWHP
OSI
/RZ3RZHU)LHOG
0(
PLFURELRORJLFDOO\HYDOXDEOH
0HG'5$
0HGLFDO'LFWLRQDU\IRU5HJXODWRU\$FWLYLWLHV
0'563
PXOWLGUXJUHVLVWDQW6WUHSWRFRFFXVSQHXPRQLDH
PJ
PLOOLJUDP
0,&
PLQLPXPLQKLELWRU\FRQFHQWUDWLRQ
056$
0HWKLFLOOLQ5HVLVWDQW6WDSK\ORFRFFXVDXUHXV
066$
0HWKLFLOOLQ6XVFHSWLEOH6WDSK\ORFRFFXVDXUHXV
1'$
1HZ'UXJ$SSOLFDWLRQ
1,
QRQLQIHULRU


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
31663
3HQLFLOOLQQRQVXVFHSWLEOH6WUHSWRFRFFXVSQHXPRQLDH
3257
3QHXPRQLD2XWFRPHV5HVHDUFK7HDP
3663
3HQLFLOOLQVXVFHSWLEOH6WUHSWRFRFFXVSQHXPRQLDH
3'
3KDUPDFRG\QDPLF
3.
3KDUPDFRNLQHWLF
32
RUDOO\
35
,QWHUYDOIURPWKH3ZDYHDWULDOFRQWUDFWLRQRUGHSRODUL]DWLRQWRWKH
RQVHWRIWKH4ZDYHLQWKHPHDVXUHPHQWRIHOHFWULFDODFWLYLW\RIWKH
P\RFDUGLXP
37(
SRVWWKHUDS\HYDOXDWLRQ
47F
47FRUUHFWHG
6$(
VHULRXVDGYHUVHHYHQW
6$3
6WDWLVWLFDO$QDO\VLV3ODQ
6$6
6WDWLVWLFDO$QDO\VLV6RIWZDUH
6'
VWDQGDUGGHYLDWLRQ
6,
,QWHUQDWLRQDO6\VWHP
VSS
VSHFLHVSOXUDO
6,56
6\VWHPLF,QIODPPDWRU\5HVSRQVH6\QGURPH
7($(
WUHDWPHQWHPHUJHQWDGYHUVHHYHQW
8$7
XULQDU\DQWLJHQWHVW
8/1
XSSHUOLPLWRIQRUPDO
86
8QLWHG6WDWHV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

,1752'8&7,21
7KLVGRFXPHQWSUHVHQWVWKH6WDWLVWLFDO$QDO\VLV3ODQ6$3IRUWKHSURWRFRO
37.&$%3³$3KDVH5DQGRPL]HG'RXEOH%OLQG0XOWL&HQWHU6WXG\WR
&RPSDUHWKH6DIHW\DQG(IILFDF\RI2PDGDF\FOLQH,932WR0R[LIOR[DFLQ,932IRU
7UHDWLQJ&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD&$%3´7KHVWDWLVWLFDOSODQGHVFULEHG
LVDQDSULRULSODQDQGQRDQDO\VLVSULRUWRWKHSUHSDUDWLRQRIWKLVSODQKDVEHHQFRQGXFWHG
7KLV6$3VXPPDUL]HVWKHVWXG\GHVLJQDQGREMHFWLYHVDQGSURYLGHVGHWDLOVRIWKHRXWFRPH
GHILQLWLRQVDQGVWDWLVWLFDOPHWKRGVWKDWZLOOEHXVHGWRDQDO\]HWKHGDWDIURPSURWRFRO
37.&$%3
7KHVWXG\KDVEHHQGHVLJQHGWRDGGUHVVERWKWKH)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$DQG
(XURSHDQ0HGLFLQHV$JHQF\(0$UHJXODWRU\UHTXLUHPHQWVKRZHYHUDVHSDUDWH6$3ZLOO
EHGHYHORSHGWRDGGUHVVWKHGLIIHUHQWSULPDU\HIILFDF\RXWFRPHDQGDQDO\VHVIRUWKH(0$
:KLOHWKH(0$VXSSRUWVWKHDVVHVVPHQWRIFOLQLFDOUHVSRQVHE\WKH,QYHVWLJDWRUDWD3RVW
7KHUDS\(YDOXDWLRQ37(YLVLWZKLFKLVVFKHGXOHGWRRFFXUWRGD\VDIWHUWKHODVWGRVH
RIWHVWDUWLFOHDVWKHSULPDU\HQGSRLQWWKH)'$JXLGHOLQHVUHTXLUHXVLQJDQHDUOLHUSULPDU\
HQGSRLQW'D\WR'D\DIWHUWKHILUVWGRVHRIWHVWDUWLFOHEDVHGRQLPSURYHPHQWLQ
SQHXPRQLDV\PSWRPV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

75,$/2%-(&7,9(6

3ULPDU\2EMHFWLYHV
7KHSULPDU\REMHFWLYHRIWKLVVWXG\LVWRGHPRQVWUDWHWKDWRPDGDF\FOLQHPJLYRQFH
HYHU\KRXUVTKIRUGRVHVIROORZHGE\PJLYPJSRRQFHHYHU\KRXUV
TKLVQRQLQIHULRUWRPR[LIOR[DFLQPJLYSRTKLQWKHWUHDWPHQWRIDGXOWVZLWK
&$%3

6HFRQGDU\2EMHFWLYHV
7KHVHFRQGDU\REMHFWLYHVDUHDVIROORZV
 7RHYDOXDWHWKHVDIHW\RIRPDGDF\FOLQHLQWKHWUHDWPHQWRIDGXOWVXEMHFWVZLWK&$%3LQ
WKH6DIHW\SRSXODWLRQ
 7RHYDOXDWHWKH&OLQLFDO5HVSRQVH(DUO\&OLQLFDO5HVSRQVHDQGLQYHVWLJDWRUDVVHVVPHQW
RIUHVSRQVHDFFRUGLQJWRWKHLGHQWLILHGFDXVDWLYHSDWKRJHQ
 7RHYDOXDWHWKHSKDUPDFRNLQHWLFV3.RIRPDGDF\FOLQHLQDGXOWVXEMHFWVZLWK&$%3



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<'(6,*1&216,'(5$7,216

6WXG\'HVLJQ
7KLVLVDUDQGRPL]HGGRXEOHEOLQGDFWLYHFRPSDUDWRUFRQWUROOHG3KDVHVWXG\
FRPSDULQJWRGD\VRIWUHDWPHQWZLWKHLWKHURPDGDF\FOLQHRUPR[LIOR[DFLQIRUWKH
WUHDWPHQWRIDGXOWVZLWK&$%37KHQXPEHURIVXEMHFWVLQ3QHXPRQLD2XWFRPHV5HVHDUFK
7HDP32575LVN&ODVV,,ZLOOEHOLPLWHGWRQRPRUHWKDQRIUDQGRPL]HGVXEMHFWV
6XEMHFWUDQGRPL]DWLRQZLOOEHVWUDWLILHGDFURVVWUHDWPHQWJURXSVE\32575LVN&ODVV
,,DQG,,,,9UHFHLSWRIDQDOORZHGDQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQW\HVDQGQRDQGJHRJUDSKLFUHJLRQ:HVWHUQ(XURSH1RUWK$PHULFD(DVWHUQ
(XURSHDQG5HVWRI:RUOG$OOVXEMHFWVDUHH[SHFWHGWRSUHVHQWZLWK&$%3VHYHUHHQRXJK
WRUHTXLUHDPLQLPXPRIDWOHDVWGD\VRILQWUDYHQRXVLYWUHDWPHQW$IWHUDPLQLPXPRI
GD\VRILYWUHDWPHQWWKHLQYHVWLJDWRUFDQVZLWFKWKHVXEMHFWWRRUDOSRWUHDWPHQWLIWKH
VXEMHFWLVFRQVLGHUHGFOLQLFDOO\VWDEOHDQGPHHWVWKHFULWHULDIRUWUDQVLWLRQWRDSRUHJLPHQ
6FUHHQLQJDVVHVVPHQWVZLOOEHSHUIRUPHGZLWKLQKRXUVEHIRUHWKHILUVWLQIXVLRQRIWHVW
DUWLFOH7KHGD\RIWKHILUVWLQIXVLRQRIWHVWDUWLFOHLVGHILQHGDV'D\DQGWKHGD\SULRULV
'D\WKHUHLVQR'D\7KHVWXG\ZLOOKDYHWKHIROORZLQJSURWRFROGHILQHGHYDOXDWLRQV
 9LVLWVZLOOEHFRQGXFWHGGDLO\RQ'D\VWKURXJK7KH'D\YLVLWLVRSWLRQDOIRU
VXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPD
KRVSLWDOVHWWLQJ$'D\YLVLWVKRXOGEHFRQGXFWHGIRUVXEMHFWVZLWKWUHDWPHQW
H[WHQGLQJEH\RQGGD\VXQOHVVWKLVYLVLWFRLQFLGHVZLWKWKH(QGRI7UHDWPHQW(27
9LVLW
 (279LVLWWREHSHUIRUPHGRQWKHFDOHQGDUGD\RIRUZLWKLQGD\VIROORZLQJWKHODVW
GRVHRIDQ\WHVWDUWLFOH,IDVXEMHFWZLWKGUDZVSUHPDWXUHO\RUWHUPLQDWHVSDUWLFLSDWLRQLQ
WKHVWXG\EHIRUHFRPSOHWLRQWKH(279LVLWVKRXOGEHFRQGXFWHG
 37(9LVLWWREHSHUIRUPHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIVWXG\WKHUDS\
 )LQDO)ROORZXSDVVHVVPHQW6WXG\'D\DIWHUVWDUWRIILUVWLQIXVLRQRIWHVWDUWLFOH

$GHWDLOHG6FKHGXOHRI6WXG\3URFHGXUHVLVSURYLGHGLQ$SSHQGL[

6DPSOH6L]H
7KHVWXG\LVGHVLJQHGWRVKRZ1,LQWKHSULPDU\HIILFDF\RXWFRPHIRUWKH)'$RI(DUO\
&OLQLFDO5HVSRQVH(&5DWWRKRXUVIROORZLQJWKHILUVWGRVHRIWHVWDUWLFOHLQWKH
LQWHQWWRWUHDW,77SRSXODWLRQ$Q1,PDUJLQRIZLOOEHXVHGIRUWKHDQDO\VLVLQWKH
,77SRSXODWLRQ7KH1,PDUJLQZDVEDVHGRQDQDQDO\VLVRIWKHKLVWRULFDOGDWDUHJDUGLQJWKH
WUHDWPHQWHIIHFWRIDQWLELRWLFVLQSQHXPRQLD
7KHVWXG\KDVDOVREHHQGHVLJQHGWRVKRZ1,LQWKHFRSULPDU\HIILFDF\RXWFRPHVIRUWKH
(0$RI,QYHVWLJDWRUDVVHVVPHQWRIFOLQLFDOUHVSRQVHDWWKH37(YLVLWLQWKH,77DQG&(37(


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
SRSXODWLRQV$VHSDUDWH6$3ZLOOEHGHYHORSHGWRDGGUHVVWKHGLIIHUHQWSULPDU\HIILFDF\
RXWFRPHDQGDQDO\VHVIRUWKH(0$
,QWKHFHIWDUROLQHFOLQLFDOVWXGLHVZKLFKHQUROOHGRQO\VXEMHFWVRI32575LVN&ODVV,,,
DQG,9WKHUDWHVIRUFOLQLFDOVXFFHVVEDVHGRQ,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDWWKH37(YLVLWUDQJHGIURPLQWKHPRGLILHG,77DQGFOLQLFDOO\
HYDOXDEOH&(SRSXODWLRQVZLWKWKHUDWHVLQWKHPRGLILHG,77SRSXODWLRQORZHUWKDQWKRVHLQ
WKH&(SRSXODWLRQ7HIODUR7KXVLWLVUHDVRQDEOHWRDVVXPHFOLQLFDOVXFFHVVUDWHVRI
LQWKH,77DQGLQWKH&(SRSXODWLRQV
)RUWKH,QYHVWLJDWRU¶V$VVHVVPHQWRI&OLQLFDO5HVSRQVHDW37(HQGSRLQWLQWKH,77
SRSXODWLRQ32575LVN&ODVV,,,DQG,9DVVXPLQJDQRXWFRPHUDWHRILQERWKWUHDWPHQW
JURXSV1,PDUJLQRISRZHUDQGDVLGHGDOSKDOHYHORIVLQFH&$%3
VWXG\LVEHLQJFRQGXFWHGXVLQJWKHVDPSOHVL]HGHWHUPLQDWLRQPHWKRGRI
)DUULQJWRQDQG0DQQLQJDWRWDORIVXEMHFWV32575LVN&ODVV,,,DQG,9DUH
UHTXLUHG$VVXPLQJDQHYDOXDELOLW\UDWHVXEMHFWVZLOOEHDYDLODEOHLQWKH&(
SRSXODWLRQ$VVXPLQJDQUHVSRQVHUDWHLQERWKWUHDWPHQWJURXSVD1,PDUJLQ
VLGHGDOSKDOHYHORIWKHUHLVSRZHUWRVKRZ1,IRU,QYHVWLJDWRU¶V$VVHVVPHQW
RI&OLQLFDO5HVSRQVHDW37(LQWKH&(SRSXODWLRQ,IRIVXEMHFWVDUHLQ32575LVN
&ODVV,,DWRWDORIVXEMHFWVDUHUHTXLUHG
5HWURVSHFWLYHDQDO\VHVRIFOLQLFDOVWXG\GDWD7DOERWHWDOLQGLFDWHWKHSRLQWHVWLPDWHV
IRU(DUO\&OLQLFDO5HVSRQVHDW'D\UDQJHIURPWR,QDGGLWLRQDUHFHQWFOLQLFDO
VWXG\RIRUDOVROLWKURP\FLQFRPSDUHGWRPR[LIOR[DFLQIRXQGRIVXEMHFWVKDGDQ(DUO\
&OLQLFDO5HVSRQVHRIVXFFHVV7KXVLWLVUHDVRQDEOHWRDVVXPHWKDWLQDSURVSHFWLYHVWXG\RI
VXEMHFWVZLWKPRGHUDWHWRVHYHUH&$%3WKHUDWHRI&OLQLFDO6XFFHVVDWDQHDUO\WLPHSRLQW
ZLOOEHDSSUR[LPDWHO\
)RUWKH(DUO\&OLQLFDO5HVSRQVHSULPDU\HIILFDF\HQGSRLQWZLWKVXEMHFWVLQWKH,77
SRSXODWLRQDUHVSRQVHUDWHRIIRUERWKWUHDWPHQWJURXSV1,PDUJLQRIDVLGHG
DOSKDOHYHORIWKHUHLVDSRZHUWRVKRZ1,$VVXPLQJWKHPLFURELRORJLFDO
HYDOXDELOLW\UDWHLVDWRWDORIVXEMHFWVDUHH[SHFWHGWREHLQWKHPLFUR,77
SRSXODWLRQ
7KXVVXEMHFWVSURYLGHVXIILFLHQWSRZHUIRUWKHSULPDU\HIILFDF\DQDO\VHVIRUERWKWKH
)'$DQG(0$UHJXODWRU\DXWKRULWLHV$VXPPDU\RIWKHVDPSOHVL]HFDOFXODWLRQVDQG
DVVXPSWLRQVLVSURYLGHGLQ7DEOH


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH
6DPSOH6L]HDQG3RZHU&DOFXODWLRQV

3ULPDU\2XWFRPH
(DUO\&OLQLFDO
5HVSRQVH
6HFRQGDU\
2XWFRPH(DUO\
&OLQLFDO5HVSRQVH
6HFRQGDU\2XWFRPH
,QYHVWLJDWRU¶V$VVHVVPHQWRI
&OLQLFDO5HVSRQVHDW37(
3RSXODWLRQ
,77
PLFUR,77
,77
&(
1,0DUJLQ




(YDOXDELOLW\5DWH
1$

1$

2XWFRPH5DWH




32575LVN&ODVV,,
1$
1$


1




3RZHU




&(   FOLQLFDOO\ HYDOXDEOH,77   LQWHQWWRWUHDW PLFUR,77   PLFURELRORJLFDO LQWHQWWRWUHDW1  QXPEHU
1$ QRWDSSOLFDEOH1, QRQLQIHULRULW\37( SRVWWKHUDS\HYDOXDWLRQ


5DQGRPL]DWLRQDQG0DVNLQJ
$OOHOLJLEOHVXEMHFWVZLOOEHUDQGRPL]HGYLDDQ,QWHUDFWLYH5HVSRQVH6\VWHP,[56WKDW
DVVLJQVWKHPWRRIWKHWUHDWPHQWDUPVRPDGDF\FOLQHDQGPR[LIOR[DFLQLQDUDWLR
7KHVLWHGHOHJDWHZLOOFRQWDFWWKH,[56YLDZHEDIWHUFRQILUPLQJWKDWWKHVXEMHFWIXOILOOVDOO
WKHLQFOXVLRQFULWHULDDQGKDVQRQHRIWKHH[FOXVLRQFULWHULD7KH,[56ZLOODVVLJQDWHVW
DUWLFOHWRWKHVXEMHFWEDVHGRQDFRPSXWHUJHQHUDWHGUDQGRPL]DWLRQVFKHGXOH7KH
UDQGRPL]DWLRQZLOOEHDEORFNHGUDQGRPL]DWLRQVHTXHQFHVWUDWLILHGE\32575LVN&ODVV
,,DQG,,,,9UHFHLSWRIDQDOORZHGDQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\
WUHDWPHQW\HVDQGQRDQGJHRJUDSKLFUHJLRQ:HVWHUQ(XURSH1RUWK$PHULFD(DVWHUQ
(XURSHDQG5HVWRI:RUOG6XEMHFWVUDQGRPL]HGLQWRWKHVWXG\ZLOOEHDVVLJQHGWKH
WUHDWPHQWFRUUHVSRQGLQJWRWKHQH[WDYDLODEOHQXPEHULQWKHUHVSHFWLYHVWUDWXPRIWKH
FRPSXWHUJHQHUDWHGUDQGRPL]DWLRQVFKHGXOH7KHVXEMHFWLVFRQVLGHUHGUDQGRPL]HGZKHQ
WKH,[56SURYLGHVWKHWHVWDUWLFOHDVVLJQPHQWLHFRPSOHWHVDUDQGRPL]DWLRQWUDQVDFWLRQ
UHJDUGOHVVRIZKHWKHUWKHVXEMHFWDFWXDOO\UHFHLYHVDQ\PHGLFDWLRQ5DQGRPL]DWLRQRI
VXEMHFWVZLWKD32575LVN&ODVVRI,,ZLOOEHFDSSHGDWRIWKHWRWDOQXPEHURIVXEMHFWV
UDQGRPL]HG5DQGRPL]DWLRQRIVXEMHFWVZKRKDYHUHFHLYHGDQDOORZHGDQWLEDFWHULDOWKHUDS\
LQWKHKRXUVSULRUWRVWXG\WUHDWPHQWZLOOEHFDSSHGDWRIWKHWRWDOQXPEHURIVXEMHFWV
UDQGRPL]HG

(IILFDF\0HDVXUHV

3ULPDU\(IILFDF\2XWFRPH
7KHSULPDU\HIILFDF\RXWFRPHLVWKHGHWHUPLQDWLRQRIWKHUHVSRQVHWRWKHUDS\DWWKH(DUO\
&OLQLFDO5HVSRQVHDVVHVVPHQWWRKRXUVDIWHUDGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVW
DUWLFOHDQGZLOOEHGHWHUPLQHGSURJUDPPDWLFDOO\XVLQJWKHLQYHVWLJDWRU¶VDVVHVVPHQWRIWKH
VXEMHFW¶VV\PSWRPVDVVRFLDWHGZLWK&$%3HQWHUHGLQWRWKHH&5)7KHVHYHULW\RIWKH
VXEMHFW
V&$%3V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHD
ZLOOEHHYDOXDWHGRQDSRLQWVFDOHDEVHQWPLOGPRGHUDWHRUVHYHUHEDVHGXSRQWKH


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUN
IRU,QYHVWLJDWRU$VVHVVPHQWLQ7DEOH
7DEOH
&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\
*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQW
&28*+"
$EVHQW
0LOG
0RGHUDWH
6HYHUH
1RFRXJKRU
UHVROXWLRQWR
SUH&$%3
%DVHOLQH
&RXJKSUHVHQWEXW
LWGRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&RXJKSUHVHQW
IUHTXHQWDQGLWGRHV
LQWHUIHUHZLWKVRPH
RIWKHVXEMHFW¶V
XVXDOGDLO\
DFWLYLWLHV
&RXJKLVSUHVHQW
WKURXJKRXWWKHGD\
DQGQLJKWLWOLPLWV
PRVWRIWKH
VXEMHFWV¶XVXDO
GDLO\DFWLYLWLHVDQG
VOHHSSDWWHUQV
3/(85,7,&
&+(673$,1"
$EVHQW
0LOG
0RGHUDWH
6HYHUH
1RFKHVWSDLQRU
UHVROXWLRQRIFKHVW
SDLQUHODWHGWR
&$%3
&KHVWSDLQSUHVHQW
RFFDVLRQDOO\ZLWK
GHHSEUHDWKLQJEXW
LWGRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&KHVWSDLQLV
SUHVHQWZLWKQRUPDO
EUHDWKVDQGLWGRHV
LQWHUIHUHZLWKWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
&KHVWSDLQLV
SUHVHQWDWUHVW
DQGRUZLWKVKDOORZ
EUHDWKLQJLWOLPLWV
PRVWRIWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
6+2571(662)
%5($7+"
$EVHQW
0LOG
0RGHUDWH
6HYHUH
1RVKRUWQHVVRI
EUHDWKRUUHVROXWLRQ
WRSUH&$%3
%DVHOLQH
6KRUWQHVVRIEUHDWK
ZLWKVWUHQXRXV
DFWLYLWLHVRQO\EXWLW
GRHVQRWLQWHUIHUH
ZLWKVXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
6KRUWQHVVRIEUHDWK
ZLWKXVXDODFWLYLWLHV
DQGLWGRHVLQWHUIHUH
ZLWKWKHVXEMHFW¶V
XVXDOGDLO\
DFWLYLWLHV
6KRUWQHVVRIEUHDWK
ZLWKPLQLPDO
H[HUWLRQRUDWUHVW
LWOLPLWVPRVWRIWKH
VXEMHFW¶VXVXDO
GDLO\DFWLYLWLHV
3+/(*0
638780
352'8&7,21"
$EVHQW
0LOG
0RGHUDWH
6HYHUH
1RFRXJKLQJXSRI
SKOHJPVSXWXPRU
UHVROXWLRQWRSUH
&$%3%DVHOLQH
6XEMHFWFRXJKVXS
DVPDOODPRXQWRI
SKOHJPVSXWXP
6XEMHFWFRXJKVXS
DPRGHUDWHDPRXQW
RISKOHJPVSXWXP
6XEMHFWFRXJKVXS
DODUJHDPRXQWRI
SKOHJPVSXWXP

7KHFDWHJRULHVRI(DUO\&OLQLFDO5HVSRQVHDUHGHILQHGDVIROORZV
&OLQLFDO6XFFHVVVXUYLYDOZLWKLPSURYHPHQWRIDWOHDVWOHYHOLHVHYHUHWRPRGHUDWH
PRGHUDWHWRPLOGPLOGWRDEVHQWFRPSDUHGWREDVHOLQH6FUHHQLQJLQDWOHDVW&$%3
V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDZLWKQRZRUVHQLQJ
E\DWOHDVWOHYHOLQWKHRWKHU&$%3V\PSWRPV,QRUGHUIRUWKHVXEMHFWWREHFRQVLGHUHGD
&OLQLFDO6XFFHVVWKHVXEMHFWPD\QRWPHHWDQ\FULWHULDIRU&OLQLFDO)DLOXUHRU,QGHWHUPLQDWH
(DUO\&OLQLFDO5HVSRQVH
&OLQLFDO)DLOXUHPHHWLQJDQ\RIWKHIROORZLQJFULWHULD
 7KHUHLVQRLPSURYHPHQWE\DWOHDVWOHYHOLHVHYHUHWRPRGHUDWHPRGHUDWHWRPLOG
PLOGWRDEVHQWFRPSDUHGWREDVHOLQH6FUHHQLQJLQ&$%3V\PSWRPV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 $Q\RIWKH&$%3V\PSWRPVLVZRUVHE\DWOHDVWOHYHOFRPSDUHGWREDVHOLQH
6FUHHQLQJ
 7KHVXEMHFWUHTXLUHVDOWHUQDWLYHUHVFXHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWRWKH
(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQWUHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRI
QHZV\PSWRPVDWWULEXWDEOHWR&$%3RUEGHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI
&$%3HJHPS\HPDOXQJDEVFHVV
 7KHVXEMHFWLVUHFHLYLQJDQWLEDFWHULDOWKHUDS\WKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHU
VWXG\IRUDGLIIHUHQWLQIHFWLRQIURPWKHRQHXQGHUVWXG\
 'LVFRQWLQXHGVWXG\WKHUDS\GXHWRDQ$(SULRUWRWKH(DUO\&OLQLFDO5HVSRQVH
DVVHVVPHQW
 'HDWKSULRUWRWKH(DUO\&OLQLFDO5HVSRQVHDVVHVVPHQW

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
 6XEMHFWZDVQRWVHHQIRUWKHHYDOXDWLRQEHFDXVHVKHZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUUHDVRQVSHFLI\
 2WKHUVSHFLILHGUHDVRQ

6XEMHFWVZLWKPLVVLQJGDWDVXFKWKDWDQ(DUO\&OLQLFDO5HVSRQVHFDQQRWEHGHWHUPLQHGZLOOEH
FRQVLGHUHGDQLQGHWHUPLQDWHUHVSRQVH6XEMHFWVZKRGLGQRWKDYHDWOHDVWV\PSWRPVRI
&$%3DWEDVHOLQHZLOODOVREHFRQVLGHUHGDQLQGHWHUPLQDWHUHVSRQVH6LQFHVXEMHFWVZLWKDQ
LQGHWHUPLQDWHUHVSRQVHDUHLQFOXGHGLQWKHGHQRPLQDWRURIWKHFDOFXODWLRQRI&OLQLFDO
6XFFHVVWKHVHVXEMHFWVDUHHVVHQWLDOO\&OLQLFDO)DLOXUHV)RUWKH,77SRSXODWLRQWKH
SURSRUWLRQRI,77VXEMHFWVZLWKD&OLQLFDO6XFFHVVLVGHILQHGXVLQJWKHIROORZLQJIRUPXOD
1XPEHURIVXEMHFWVZLWKDQ(DUO\&OLQLFDO6XFFHVV
1XPEHURIVXEMHFWVZLWKDQ(DUO\&OLQLFDO)DLOXUH1XPEHURIVXEMHFWV
ZLWKDUHVSRQVHRI,QGHWHUPLQDWH1XPEHURIVXEMHFWVZLWKDQ(DUO\&OLQLFDO6XFFHVV


6HFRQGDU\(IILFDF\2XWFRPHV

,QYHVWLJDWRUV$VVHVVPHQWRI&OLQLFDO5HVSRQVH
7KHLQYHVWLJDWRUZLOOPDNHDQDVVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH(27DQG37(9LVLWV
EDVHGRQWKHGHILQLWLRQVEHORZ7KHVHFRQGDU\HIILFDF\RXWFRPHLVWKHRYHUDOODVVHVVPHQWRI
FOLQLFDOUHVSRQVHDW37(GHULYHGIURPWKHLQYHVWLJDWRUDVVHVVPHQWVDWWKH(27DQG37(
9LVLWVLQWKH,77DQG&(37(SRSXODWLRQVDVGHILQHGLQ7DEOH
(279LVLW
$WWKH(279LVLWRQWKHFDOHQGDUGD\RIRUZLWKLQGD\VIROORZLQJWKHODVWGRVHRIWHVW
DUWLFOHWKHLQYHVWLJDWRUZLOOLQGLFDWHWKHFOLQLFDOVWDWXVRIWKHLQIHFWLRQXQGHUVWXG\DV
GHWDLOHGEHORZ


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
&OLQLFDO6XFFHVVWKHVXEMHFWLVDOLYHDQGWKHLQIHFWLRQLVVXIILFLHQWO\UHVROYHGVXFKWKDW
IXUWKHUDQWLEDFWHULDOWKHUDS\LVQRWQHHGHG7KHVHVXEMHFWVPD\KDYHVRPHUHVLGXDOILQGLQJV
UHODWHGWRLQIHFWLRQLHFRXJKUHTXLULQJDQFLOODU\LHQRQDQWLELRWLFWUHDWPHQW
HJH[SHFWRUDQW,QRUGHUIRUWKHVXEMHFWWREHFRQVLGHUHGD&OLQLFDO6XFFHVVDW(27WKH
VXEMHFWPD\QRWPHHWDQ\FULWHULDIRU&OLQLFDO)DLOXUHRU,QGHWHUPLQDWHDW(27
&OLQLFDO)DLOXUHWKHVXEMHFWUHTXLUHVDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWR
(27UHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVWR&$%3RU
EGHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI&$%3HJHPS\HPDOXQJDEVFHVVRU
FVXEMHFWGHYHORSHGDQ$(WKDWUHTXLUHGGLVFRQWLQXDWLRQRIVWXG\WKHUDS\SULRUWRWKH(27
2WKHUUHDVRQVIRUFOLQLFDOIDLOXUHDUH
 6XEMHFWLVUHFHLYLQJDQWLEDFWHULDOWKHUDS\WKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHU
VWXG\IRUDGLIIHUHQWLQIHFWLRQIURPWKHRQHXQGHUVWXG\
 'HDWKSULRUWR(27

,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
 6XEMHFWVZHUHQRWVHHQIRU(27HYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUUHDVRQVSHFLI\
 2WKHUVSHFLILHGUHDVRQ

37(9LVLW
$WWKH37(9LVLWWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIVWXG\WKHUDS\WKHLQYHVWLJDWRU
ZLOOLQGLFDWHRQHRIWKHIROORZLQJRXWFRPHVUHODWLQJWRWKHSULPDU\LQIHFWLRQXQGHUVWXG\
&OLQLFDO6XFFHVVVXUYLYDODIWHUFRPSOHWLRQRIDWHVWDUWLFOHUHJLPHQZLWKRXWUHFHLYLQJDQ\
V\VWHPLFDQWLEDFWHULDOWKHUDS\RWKHUWKDQWHVWDUWLFOHUHVROXWLRQRIVLJQVDQGV\PSWRPVRIWKH
LQIHFWLRQSUHVHQWDW6FUHHQLQJZLWKQRQHZV\PSWRPVRUFRPSOLFDWLRQVDWWULEXWDEOHWR&$%3
DQGQRQHHGIRUIXUWKHUDQWLEDFWHULDOWKHUDS\
&OLQLFDO)DLOXUHWKHVXEMHFWUHTXLUHVDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3SULRUWR
37(UHODWHGWRHLWKHUDSURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVRI&$%3RU
EGHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI&$%3HJHPS\HPDOXQJDEVFHVV2WKHU
UHDVRQVIRUFOLQLFDOIDLOXUHDUH
 7KHVXEMHFWLVUHFHLYLQJDQWLELRWLFVWKDWPD\EHHIIHFWLYHIRUWKHLQIHFWLRQXQGHUVWXG\IRU
DGLIIHUHQWLQIHFWLRQIURPWKHRQHXQGHUVWXG\
 'HDWKSULRUWR37(



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
,QGHWHUPLQDWHWKHFOLQLFDOUHVSRQVHWRWHVWDUWLFOHFRXOGQRWEHDGHTXDWHO\LQIHUUHGGXHWR
 6XEMHFWVZHUHQRWVHHQIRU37(HYDOXDWLRQEHFDXVHWKH\ZLWKGUHZFRQVHQWZHUHORVWWR
IROORZXSRWKHUVSHFLI\
 2WKHUVSHFLILHGUHDVRQ

2YHUDOO&OLQLFDO5HVSRQVHDW37(EDVHGRQWKHLQYHVWLJDWRU¶VDVVHVVPHQWLVGHWHUPLQHGDV
IROORZVIURPWKHLQYHVWLJDWRU
VDVVHVVPHQWVDWWKH(27DQG37(9LVLWV
7DEOH
,QYHVWLJDWRU
V$VVHVVPHQWRI&OLQLFDO5HVSRQVH
(279LVLW
37(9LVLW
2YHUDOO$VVHVVPHQWRI&OLQLFDO
5HVSRQVHDW37(9LVLW
6XFFHVV
6XFFHVV
6XFFHVV
6XFFHVV
)DLOXUH
)DLOXUH
6XFFHVV
,QGHWHUPLQDWH
,QGHWHUPLQDWH
)DLOXUH
6XFFHVV
)DLOXUH
)DLOXUH
)DLOXUH
)DLOXUH
)DLOXUH
,QGHWHUPLQDWH
)DLOXUH
,QGHWHUPLQDWH
6XFFHVV
,QGHWHUPLQDWH
,QGHWHUPLQDWH
)DLOXUH
)DLOXUH
,QGHWHUPLQDWH
,QGHWHUPLQDWH
,QGHWHUPLQDWH
$EEUHYLDWLRQV(27 HQGRIWUHDWPHQW37( SRVWWKHUDS\HYDOXDWLRQ

)RUWKH,77SRSXODWLRQWKHSURSRUWLRQRI,77VXEMHFWVZLWKD&OLQLFDO6XFFHVVLVGHILQHG
XVLQJWKHIROORZLQJIRUPXODZKHUHWKHGHQRPLQDWRUDGGVWRWKHWRWDOQXPEHURIVXEMHFWVLQ
WKH,77SRSXODWLRQ
1XPEHURIVXEMHFWVZLWK&OLQLFDO6XFFHVV
1XPEHURIVXEMHFWVZLWK&OLQLFDO6XFFHVV1XPEHURIVXEMHFWVZLWKD&OLQLFDO
)DLOXUH1XPEHURIVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVH

%\GHILQLWLRQVXEMHFWVLQWKH&((27DQG&(37(SRSXODWLRQVFDQQRWKDYHDQ
,QGHWHUPLQDWHUHVSRQVH7KXVIRUWKH&((27DQG&(37(SRSXODWLRQVWKHSURSRUWLRQRI
VXEMHFWVZLWKD&OLQLFDO6XFFHVVLVGHILQHGXVLQJWKHIROORZLQJIRUPXOD
1XPEHURIVXEMHFWVZLWK&OLQLFDO6XFFHVV
1XPEHURIVXEMHFWVZLWK&OLQLFDO6XFFHVV1XPEHURIVXEMHFWVZLWKD&OLQLFDO
)DLOXUH




2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

0LFURELRORJLF2XWFRPHV
0LFURELRORJLFDOUHVSRQVHGHILQLWLRQVIRUWKHHYDOXDWLRQVSHUIRUPHGDWWKH(27DQG37(
9LVLWVDQGDQDO\]HGLQWKHPLFUR,77DQG0(SRSXODWLRQVDUHSUHVHQWHGLQWKHWDEOHEHORZ
3RVWEDVHOLQHPLFURELRORJLFDOVDPSOHVZLOOEHFROOHFWHGRQO\DVFOLQLFDOO\LQGLFDWHG$W\SLFDO
SDWKRJHQVLGHQWLILHGRQO\E\DFXWHDQGFRQYDOHVFHQWVHURORJ\RUEDVHOLQHXULQDU\DQWLJHQ
WHVWV8$7DQG6WUHSWRFRFFXVSQHXPRQLDHLGHQWLILHGRQO\E\EDVHOLQH8$7FDQRQO\KDYHD
SUHVXPHGRULQGHWHUPLQDWHPLFURELRORJLFUHVSRQVH
,IDVXEMHFWKDVWKHVDPHSDWKRJHQLHVDPHJHQXVDQGVSHFLHVLGHQWLILHGIURPERWKD
UHVSLUDWRU\DQGEORRGVSHFLPHQDPLFURELRORJLFDOUHVSRQVHLVGHWHUPLQHGIRUHDFKRIWKH
SDWKRJHQV7KHPLFURELRORJLFUHVSRQVHIRUWKHUHVSLUDWRU\SDWKRJHQLVEDVHGRQWKHSDWKRJHQ
LVRODWHGIURPWKH(27RU37(VSHFLPHQLIDVSHFLPHQZDVFROOHFWHG7KHPLFURELRORJLF
UHVSRQVHIRUWKHEORRGSDWKRJHQLVEDVHGRQWKHEORRGVDPSOHFROOHFWHGDW(27RU37(RULI
DVDPSOHZDVQRWFROOHFWHGDWWKHSRVWEDVHOLQHYLVLWWKHEORRGVDPSOHFROOHFWHGSULRUWRDQG
FORVHVWWRWKHYLVLW)RUWKHSDWKRJHQVSHFLILFPLFURELRORJLFUHVSRQVHWKHZRUVWRXWFRPHIRU
WKHSDWKRJHQVKRXOGEHVXPPDUL]HG,I6WUHSWRFRFFXVSQHXPRQLDHLVLGHQWLILHGIURPERWKD
8$7DQGDFXOWXUHWKHFXOWXUHVKRXOGEHXVHGWRGHWHUPLQHPLFURELRORJLFDOUHVSRQVH
7DEOH
3HU3DWKRJHQ0LFURELRORJLFDO5HVSRQVH'HILQLWLRQVDWWKH(27DQG37(
9LVLWV
7HUP
'HILQLWLRQ
(UDGLFDWLRQ
7KHEDVHOLQHSDWKRJHQEDVHGRQFXOWXUHZDVDEVHQWIURPUHSHDW
FXOWXUHVRIWKHVDPHVDPSOHW\SHEORRGRUUHVSLUDWRU\VSHFLPHQ
3UHVXPHG(UDGLFDWLRQ
1RSRVWEDVHOLQHVRXUFHVSHFLPHQWRFXOWXUHLQDVXEMHFWDVVHVVHG
ZLWKDFOLQLFDOVXFFHVVE\WKH,QYHVWLJDWRU
3HUVLVWHQFH
7KHEDVHOLQHSDWKRJHQEDVHGRQFXOWXUHZDVSUHVHQWLQUHSHDW
FXOWXUHVRIWKHVDPHVDPSOHW\SHEORRGRUUHVSLUDWRU\VSHFLPHQ
3UHVXPHG3HUVLVWHQFH
1RSRVWEDVHOLQHVRXUFHVSHFLPHQWRFXOWXUHLQDVXEMHFWDVVHVVHG
ZLWKDFOLQLFDOIDLOXUHE\WKH,QYHVWLJDWRU
,QGHWHUPLQDWH
7KHVXEMHFW¶VFOLQLFDOUHVSRQVHLVLQGHWHUPLQDWHRURWKHU
FLUFXPVWDQFHWKDWSUHFOXGHVDPLFURELRORJLFDOHYDOXDWLRQ
$EEUHYLDWLRQV(27 HQGRIWUHDWPHQW37( SRVWWKHUDS\HYDOXDWLRQ

0LFURELRORJLFDORXWFRPHVDUHIXUWKHUFDWHJRUL]HGDVIDYRUDEOHXQIDYRUDEOHDQG
LQGHWHUPLQDWH)DYRUDEOHPLFURELRORJLFDORXWFRPHVDUHGHILQHGDVHUDGLFDWLRQRUSUHVXPHG
HUDGLFDWLRQ8QIDYRUDEOHPLFURELRORJLFDORXWFRPHVDUHGHILQHGDVSHUVLVWHQFHRUSUHVXPHG
SHUVLVWHQFH0LFURELRORJLFDOUHVSRQVHZLOOEHGHULYHGXVLQJHOHFWURQLFPLFURELRORJ\GDWD
IURPWKHFHQWUDOODERUDWRU\DQGIURPSDWKRJHQGHWHUPLQDWLRQSURYLGHGE\WKH6SRQVRUIRU
HDFKEDVHOLQHLVRODWH
2YHUDOOPLFURELRORJLFDOUHVSRQVHDW37(LVGHWHUPLQHGDVIROORZVIURPWKHPLFURELRORJLFDO
UHVSRQVHVDWWKH(27DQG37(9LVLWV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH
3HU3DWKRJHQ0LFURELRORJLF5HVSRQVH
(279LVLW
37(9LVLW
2YHUDOO0LFURELRORJLF5HVSRQVH
DW37(
)DYRUDEOH
)DYRUDEOH
)DYRUDEOH
)DYRUDEOH
8QIDYRUDEOH
8QIDYRUDEOH
)DYRUDEOH
,QGHWHUPLQDWH
,QGHWHUPLQDWH
8QIDYRUDEOH
)DYRUDEOH
8QIDYRUDEOH
8QIDYRUDEOH
8QIDYRUDEOH
8QIDYRUDEOH
8QIDYRUDEOH
,QGHWHUPLQDWH
8QIDYRUDEOH
,QGHWHUPLQDWH
)DYRUDEOH
,QGHWHUPLQDWH
,QGHWHUPLQDWH
8QIDYRUDEOH
8QIDYRUDEOH
,QGHWHUPLQDWH
,QGHWHUPLQDWH
,QGHWHUPLQDWH
$EEUHYLDWLRQV(27 HQGRIWUHDWPHQW37( SRVWWKHUDS\HYDOXDWLRQ
1RWH)DYRUDEOHLVGHILQHGDVHUDGLFDWLRQRUSUHVXPHGHUDGLFDWLRQ8QIDYRUDEOHLVGHILQHGDVSHUVLVWHQFHRU
SUHVXPHGSHUVLVWHQFH

3HUVXEMHFWUHVSRQVHVZLOOEHEDVHGRQSHUSDWKRJHQUHVSRQVHV7RKDYHDQRYHUDOO
SHUVXEMHFWIDYRUDEOHPLFURELRORJLFUHVSRQVHWKHRXWFRPHIRUHDFKEDVHOLQHSDWKRJHQPXVW
EHIDYRUDEOHHUDGLFDWHGRUSUHVXPHGHUDGLFDWHG,IWKHRXWFRPHIRUDQ\SDWKRJHQLV
XQIDYRUDEOHSHUVLVWHQFHRUSUHVXPHGSHUVLVWHQFHWKHVXEMHFWZLOOEHFRQVLGHUHGWRKDYHDQ
XQIDYRUDEOHSHUVXEMHFWPLFURELRORJLFUHVSRQVH6XEMHFWVZLWKDQLQGHWHUPLQDWHUHVSRQVHIRU
DOOSDWKRJHQVZLOOEHFRQVLGHUHGWRKDYHDQLQGHWHUPLQDWHSHUVXEMHFWPLFURELRORJLF
UHVSRQVH,IWKHVDPHSDWKRJHQLVLVRODWHGIURPPXOWLSOHVDPSOHW\SHVEORRGUHVSLUDWRU\
XULQHWKHZRUVWRXWFRPHZLOOEHXVHGWRGHWHUPLQHSHUVXEMHFWPLFURELRORJLFUHVSRQVH
6XSHULQIHFWLRQVZLOOQRWEHFRQVLGHUHGLQWKHPLFURELRORJLFDOUHVSRQVH0LFURELRORJLFDO
UHVSRQVHIURPZRUVWWREHVWDUHDVIROORZVSHUVLVWHQFHSUHVXPHGSHUVLVWHQFHLQGHWHUPLQDWH
SUHVXPHGHUDGLFDWLRQDQGHUDGLFDWLRQ
7KHRYHUDOOSHUVXEMHFWPLFURELRORJLFUHVSRQVHDW37(LVGHWHUPLQHGIURPWKHSHUVXEMHFW
PLFURELRORJLFUHVSRQVHVDWWKH(27DQG37(9LVLWVLQWKHVDPHPDQQHUDVWKHSHUSDWKRJHQ
PLFURELRORJLFUHVSRQVHLQ7DEOH)RUVXEMHFWVZLWKDSHUVXEMHFWIDYRUDEOHUHVSRQVHDWWKH
(279LVLWWKHRYHUDOOPLFURELRORJLFUHVSRQVHDW37(RIHUDGLFDWLRQSUHVXPHGHUDGLFDWLRQ
SHUVLVWHQFHDQGSUHVXPHGSHUVLVWHQFHDUHEDVHGRQWKHUHVSRQVHDWWKH37(9LVLW)RU
VXEMHFWVZLWKDSHUVXEMHFWXQIDYRUDEOHUHVSRQVHDWWKH(279LVLWWKHRYHUDOOPLFURELRORJLF
UHVSRQVHDW37(RISHUVLVWHQFHDQGSUHVXPHGSHUVLVWHQFHDUHEDVHGRQWKHUHVSRQVHDWWKH
(279LVLWH[FHSWIRUZKHQWKHUHVSRQVHDWWKH37(9LVLWLVXQIDYRUDEOH,QWKLVFDVHWKH
RYHUDOOPLFURELRORJLFUHVSRQVHDW37(RISHUVLVWHQFHDQGSUHVXPHGSHUVLVWHQFHDUHEDVHGRQ
WKHUHVSRQVHDWWKH37(9LVLW)RUVXEMHFWVZLWKDSHUVXEMHFWLQGHWHUPLQDWHUHVSRQVHDWWKH
(279LVLWDQGXQIDYRUDEOHDWWKH37(9LVLWWKHRYHUDOOPLFURELRORJLFUHVSRQVHDW37(RI
SHUVLVWHQFHDQGSUHVXPHGSHUVLVWHQFHDUHEDVHGRQWKHUHVSRQVHDWWKH37(9LVLW


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
)RUWKHPLFUR,77SRSXODWLRQWKHSURSRUWLRQRIVXEMHFWVZLWKDIDYRUDEOHPLFURELRORJLFDO
UHVSRQVHLVGHILQHGXVLQJWKHIROORZLQJIRUPXODZKHUHWKHGHQRPLQDWRUDGGVWRWKHWRWDO
QXPEHURIVXEMHFWVLQWKHPLFUR,77SRSXODWLRQ
1XPEHURIVXEMHFWVZLWKHUDGLFDWLRQ1XPEHURIVXEMHFWVZLWKSUHVXPHGHUDGLFDWLRQ
1XPEHURIVXEMHFWVZLWKHUDGLFDWLRQ1XPEHURIVXEMHFWVZLWKSUHVXPHG
HUDGLFDWLRQ1XPEHURIVXEMHFWVZLWKSHUVLVWHQFH1XPEHURIVXEMHFWVZLWK
SUHVXPHGSHUVLVWHQFH1XPEHURIVXEMHFWVZLWKLQGHWHUPLQDWHUHVSRQVH

%\GHILQLWLRQWKH0(SRSXODWLRQV0((27DQG0(37(PXVWKDYHVXIILFLHQWLQIRUPDWLRQ
WRGHWHUPLQHWKHRXWFRPHDQGWKXVH[FOXGHVVXEMHFWVZLWKLQGHWHUPLQDWHUHVSRQVHV)RUWKH
0(SRSXODWLRQVWKHSURSRUWLRQRIVXEMHFWVZLWKDPLFURELRORJLFDOUHVSRQVHLVGHILQHGXVLQJ
WKHIROORZLQJIRUPXOD
1XPEHURIVXEMHFWVZLWKHUDGLFDWLRQ1XPEHURIVXEMHFWVZLWKSUHVXPHGHUDGLFDWLRQ
1XPEHURIVXEMHFWVZLWKHUDGLFDWLRQ1XPEHURIVXEMHFWVZLWKSUHVXPHG
HUDGLFDWLRQ1XPEHURIVXEMHFWVZLWKSHUVLVWHQFH1XPEHURIVXEMHFWVZLWK
SUHVXPHGSHUVLVWHQFH

0LFURELRORJLFDOUHVSRQVHGHILQLWLRQVRIVXSHULQIHFWLRQDQGQHZLQIHFWLRQDUHSUHVHQWHGLQ
7DEOHEHORZ
7DEOH
0LFURELRORJLFDO5HVSRQVH'HILQLWLRQV6XSHULQIHFWLRQRU1HZ,QIHFWLRQ
7HUP
'HILQLWLRQ
6XSHULQIHFWLRQ
,VRODWLRQRIDQRQEDVHOLQHSDWKRJHQIURPEORRGRUUHVSLUDWRU\
FXOWXUHVZKLOHWKHVXEMHFWLVRQWHVWDUWLFOHDQGWKHVXEMHFWVKRZV
SURJUHVVLRQRUGHYHORSPHQWRIQHZV\PSWRPVRI&$%3RU
GHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI&$%3LHWKHVXEMHFWLV
GHHPHGDFOLQLFDOIDLOXUHE\WKHLQYHVWLJDWRUDWWKH(279LVLW
1HZLQIHFWLRQ
,VRODWLRQRIDQRQEDVHOLQHSDWKRJHQIURPDSRVWWUHDWPHQWFXOWXUHRI
DEORRGRUUHVSLUDWRU\VSHFLPHQDQGWKHVXEMHFWVKRZVSURJUHVVLRQRU
GHYHORSPHQWRIQHZV\PSWRPVRI&$%3RUGHYHORSPHQWRI
LQIHFWLRXVFRPSOLFDWLRQVRI&$%3LHWKHVXEMHFWLVGHHPHGD
FOLQLFDOIDLOXUHE\WKHLQYHVWLJDWRUDWWKH37(9LVLW
$EEUHYLDWLRQV&$%3 FRPPXQLW\DFTXLUHGEDFWHULDOSQHXPRQLD

)RUVXEMHFWVZLWKPXOWLSOHPLFURELRORJLFDOVDPSOHVWDNHQHLWKHUZKLOHWKHVXEMHFWLVRQWHVW
DUWLFOHIRUGHWHUPLQDWLRQRIVXSHULQIHFWLRQRUSRVWWUHDWPHQWIRUGHWHUPLQDWLRQRIQHZ
LQIHFWLRQDOOFXOWXUHVZLOOEHXVHGLQWKHDQDO\VLV

6DIHW\0HDVXUHV
7KHVDIHW\SDUDPHWHUVLQFOXGH$(VFOLQLFDOODERUDWRU\HYDOXDWLRQVYLWDOVLJQVDQG(&*
ILQGLQJV$(VZLOOEHFRGHGXVLQJWKH0HGLFDO'LFWLRQDU\RI5HJXODWRU\$FWLYLWLHV
0HG'5$9HUVLRQRUKLJKHUWRWKH6\VWHP2UJDQ&ODVVDQG3UHIHUUHG7HUPOHYHOV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

3KDUPDFRNLQHWLF3DUDPHWHUV
7KHFRQFHQWUDWLRQRIRPDGDF\FOLQHZLOOEHREWDLQHGIURPSODVPDVDPSOHV5HIHUWRWKH
SKDUPDFRNLQHWLFDQDO\VLVSODQIRUIXUWKHUGHWDLOV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

678'<3238/$7,216

$QDO\VLV3RSXODWLRQV

,QWHQWWR7UHDW,773RSXODWLRQ
7KH,77SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWVUHJDUGOHVVRIZKHWKHURUQRWWKH
VXEMHFWUHFHLYHGWHVWDUWLFOH$VXEMHFWLVFRQVLGHUHGUDQGRPL]HGZKHQWKH,[56SURYLGHVWKH
WHVWDUWLFOHDVVLJQPHQWLHFRPSOHWHVDUDQGRPL]DWLRQWUDQVDFWLRQ

6DIHW\3RSXODWLRQ
7KH6DIHW\SRSXODWLRQZLOOFRQVLVWRIDOOUDQGRPL]HGVXEMHFWVZKRUHFHLYHWHVWDUWLFOHHLWKHU
DFWLYHRUSODFHER$OOVDIHW\DQDO\VHVZLOOEHFRQGXFWHGLQWKLVSRSXODWLRQ

0LFURELRORJLFDO,QWHQWWR7UHDWPLFUR,773RSXODWLRQ
7KHPLFUR,77SRSXODWLRQZLOOFRQVLVWRIDOOVXEMHFWVLQWKH,77SRSXODWLRQZKRKDYHDWOHDVW
RQHFDXVDWLYHEDFWHULDOSDWKRJHQLGHQWLILHGIURPDFXOWXUHRIDUHVSLUDWRU\VSHFLPHQHJ
UHVSLUDWRU\IOXLGREWDLQHGE\EURQFKRDOYHRODUODYDJH>%$/@RUEURQFKRVFRS\SOHXUDOIOXLG
REWDLQHGE\WKRUDFHQWHVLVRUH[SHFWRUDWHGRULQGXFHGVSXWXPPHHWLQJDGHTXDF\FULWHULDDV
GHILQHGE\WKH*UDPVWDLQUHVXOWVFXOWXUHRIEORRGRUIURPDFXOWXUHLQGHSHQGHQWPHWKRG
HJSRVLWLYHXULQDU\DQWLJHQWHVWIRU6WUHSWRFRFFXVSQHXPRQLDHRU/HJLRQHOODSQHXPRSKLOD
RUSRVLWLYHVHURORJ\IRU/HJLRQHOODSQHXPRSKLOD0\FRSODVPDSQHXPRQLDHRU
&KODP\GRSKLODSQHXPRQLDHDWEDVHOLQH
3DWKRJHQGHWHUPLQDWLRQRIW\SLFDOEDFWHULDLVEDVHGRQWKHJHQXVDQGVSHFLHVLGHQWLILFDWLRQ
IURPWKHFHQWUDOODERUDWRU\,IWKHORFDOODERUDWRU\JURZVDQDFFHSWDEOHSDWKRJHQEXWWKH
FHQWUDOODERUDWRU\LVQRWDEOHWRJURZWKHLVRODWHLILVRODWHVDUHORVWGXULQJWUDQVSRUWDWLRQRU
VWRUDJHRUWKHUHDUHPDMRUGLVFUHSDQFLHVEHWZHHQWKHORFDODQGFHQWUDOODERUDWRU\LQWKH
LGHQWLILFDWLRQRIVSHFLHVWKHFHQWUDOODERUDWRU\RURWKHU6SRQVRUGHVLJQHHZLOOUHTXHVWWKDWWKH
ORFDOODERUDWRU\UHVHQGWKHLVRODWH,IWKHFHQWUDOODERUDWRU\FDQQRWGHWHUPLQHWKHJHQXVDQG
VSHFLHVRIWKHLVRODWHIRUDQ\UHDVRQWKHORFDOODERUDWRU\GHWHUPLQDWLRQRIJHQXVDQGVSHFLHV
ZLOOEHXVHGIRUSDWKRJHQLGHQWLILFDWLRQ7KHFHQWUDOODERUDWRU\LGHQWLILFDWLRQRIJHQXVDQG
VSHFLHVLVXVHGIRUDQDO\VLVXQOHVVQRFHQWUDOGHWHUPLQDWLRQH[LVWVLQZKLFKFDVHWKHORFDO
ODERUDWRU\GHWHUPLQDWLRQLVXVHG
,QJHQHUDOEDVHOLQHLVGHILQHGDVWKHKRXUSHULRGSULRUWRWKHDGPLQLVWUDWLRQRIWKHILUVW
GRVHRIWHVWDUWLFOH+RZHYHULIWKHVXEMHFWLVXQDEOHWRSURGXFHDVSXWXPVDPSOHDWEDVHOLQH
RUWKHVSXWXPVDPSOHLVQRWDGHTXDWHEDVHGRQWKH*UDPVWDLQFULWHULDDVSHFLPHQREWDLQHG
ZLWKLQKRXUVDIWHUWKHILUVWGRVHRIWHVWDUWLFOHPD\EHFRQVLGHUHGDEDVHOLQHVDPSOH,IWKH
VSXWXPVDPSOHFROOHFWHGLQWKHKRXUSHULRGSULRUWRWKHDGPLQLVWUDWLRQRIWKHILUVWGRVHRI
WHVWDUWLFOHLVQRWDGHTXDWHEDVHGRQWKH*UDPVWDLQFULWHULDDQGWKHVSXWXPVDPSOHREWDLQHG
ZLWKLQKRXUVDIWHUWKHILUVWGRVHRIWHVWDUWLFOHLVQRWDGHTXDWHEDVHGRQWKH*UDPVWDLQ
FULWHULDRQO\WKHVSXWXPVDPSOHFROOHFWHGLQWKHKRXUSHULRGSULRUWRDGPLQLVWUDWLRQRIWKH
ILUVWGRVHRIWHVWDUWLFOHZLOOEHFRQVLGHUHGEDVHOLQH8$7VDPSOHVXSWKURXJKKRXUVDIWHU
WKHILUVWGRVHRIWHVWDUWLFOHPD\EHFRQVLGHUHGWKHEDVHOLQHVDPSOHLIDSUHYLRXVVDPSOHZDV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
QRWWDNHQRUZDVIRXQGWREHQHJDWLYH%ORRGVDPSOHVXSWKURXJKKRXUVDIWHUWKHILUVW
GRVHRIWHVWDUWLFOHPD\EHFRQVLGHUHGWKHEDVHOLQHVDPSOHLIDSUHYLRXVVDPSOHZDVQRWWDNHQ
RUZDVIRXQGQRWWRKDYHDSDWKRJHQ
7KHIROORZLQJLVRODWHVZLOODOZD\VEHFRQVLGHUHGDSDWKRJHQ
6WUHSWRFRFFXVSQHXPRQLDH
 3RVLWLYH%$/EURQFKRVFRS\SOHXUDOIOXLGRUEORRGFXOWXUHRU
 3RVLWLYHVSXWXPFXOWXUHLQWKHSUHVHQFHRIDQDGHTXDWH*UDPVWDLQGHILQHGDVKDYLQJ
!SRO\PRUSKRQXFOHDUQHXWURSKLOV301V/RZ3RZHU)LHOG/3)DQG
6TXDPRXV(SLWKHOLDO&HOOV6(&V/3)RU
 3RVLWLYHXULQDU\DQWLJHQWHVW

+DHPRSKLOXVLQIOXHQ]DH
 3RVLWLYH%$/EURQFKRVFRS\SOHXUDOIOXLGRUEORRGFXOWXUHRU
 3RVLWLYHVSXWXPFXOWXUHLQWKHSUHVHQFHRIDQDGHTXDWH*UDPVWDLQ!301V/3)DQG
6(&V/3)

6WDSK\ORFRFFXVDXUHXV
 3RVLWLYH%$/EURQFKRVFRS\SOHXUDOIOXLGRUEORRGFXOWXUH
 3RVLWLYHVSXWXPFXOWXUHLQWKHSUHVHQFHRIDQDGHTXDWH*UDPVWDLQ!301V/3)DQG
6(&V/3)

0RUD[HOODFDWDUUKDOLV
 3RVLWLYH%$/EURQFKRVFRS\SOHXUDOIOXLGRUEORRGFXOWXUHRU
 3RVLWLYHVSXWXPFXOWXUHLQWKHSUHVHQFHRIDQDGHTXDWH*UDPVWDLQ!301V/3)DQG
6(&V/3)

/HJLRQHOODSQHXPRSKLOD
 3RVLWLYH%$/EURQFKRVFRS\SOHXUDOIOXLGRUEORRGFXOWXUHRU
 3RVLWLYHVSXWXPFXOWXUHUHJDUGOHVVRI*UDPVWDLQILQGLQJVRU
 3RVLWLYHDFXWHEDVHOLQHRUSRVLWLYHFRQYDOHVFHQW37(,J0(XURLPPXQ,J0(/,6$
2'UDWLRRI
 1HJDWLYHDFXWHEDVHOLQHDQGSRVLWLYHRULQGHWHUPLQDWHFRQYDOHVFHQW37(,J*
(XURLPPXQ,J*(/,6$2'UDWLRRI
 $SRVLWLYHXULQHDQWLJHQWHVW



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
0\FRSODVPDSQHXPRQLDH
 3RVLWLYHDFXWH%DVHOLQHRUSRVLWLYHFRQYDOHVFHQW37(,J0(XURLPPXQ,J0(/,6$
2'UDWLRRI
 1HJDWLYHDFXWH%DVHOLQHDQGSRVLWLYHRULQGHWHUPLQDWHFRQYDOHVFHQW37(,J*
(XURLPPXQ,J*(/,6$2'UDWLRRI

&KODP\GRSKLODSQHXPRQLDH
 3RVLWLYHDFXWH%DVHOLQHRUSRVLWLYHFRQYDOHVFHQW37(,J06HUR&370,J0FXWRII
LQGH[RI!
 1HJDWLYHDFXWH%DVHOLQHDQGSRVLWLYHRULQGHWHUPLQDWHFRQYDOHVFHQW37(,J*
6HUR&370,J*FXWRIILQGH[RI!

7KHIROORZLQJLVRODWHVDUHFRQVLGHUHGDVFRQWDPLQDQWVIURPUHVSLUDWRU\VSHFLPHQVUDWKHUWKDQ
SDWKRJHQVRI&$%3IXQJL(QWHURFRFFXVVSSYLULGDQVVWUHSWRFRFFLFRDJXODVHQHJDWLYH
VWDSK\ORFRFFL0LFURFRFFXVVSS1HLVVHULDVSSRWKHUWKDQ1PHQLQJLWLGLV&RU\QHEDFWHULXP
VSSDQGRWKHUFRU\QHIRUPV/DFWREDFLOOXVVSS9LEULRVSS&DSQRF\WRSKDJDVSS
&DUGLREDFWHULXPVSS)ODYREDFWHULXPVSS
2WKHULVRODWHVLGHQWLILHGIURPFXOWXUHRIEORRGDQGUHVSLUDWRU\VSHFLPHQVZLOOEHUHYLHZHGLQ
DEOLQGHGPDQQHUE\WKH6SRQVRURQDFDVHE\FDVHEDVLVIRUGHWHUPLQDWLRQRIZKHWKHUWKH
RUJDQLVPLVDSDWKRJHQIRU&$%3
$QH[SDQGHGPLFUR,77SRSXODWLRQZLOODOVREHDQDO\]HG7KHH[SDQGHGPLFUR,77
SRSXODWLRQZLOOEHGHILQHGXVLQJWKHVDPHFULWHULDDVIRUWKHPLFUR,77SRSXODWLRQH[FHSWDQ
DGHTXDWH*UDPVWDLQZLOOEHGHILQHGDV!301V/3)DQG6(&V/3)IRU
GHWHUPLQDWLRQRIZKHWKHUDQLVRODWHIURPDVSXWXPFXOWXUHLVDSDWKRJHQRUQRW
6WDSK\ORFRFFXVDXUHXVZLOOEHFRQVLGHUHGDGLVWLQFWSDWKRJHQZLWKPHWKLFLOOLQUHVLVWDQW
6WDSK\ORFRFFXVDXUHXV056$DQGPHWKLFLOOLQVXVFHSWLEOH6WDSK\ORFRFFXVDXUHXV066$
FRQVLGHUHGGLVWLQFWSDWKRJHQV/LNHZLVH6WUHSWRFRFFXVSQHXPRQLDHZLOOEHDGLVWLQFW
SDWKRJHQZLWKSHQLFLOOLQQRQVXVFHSWLEOH6WUHSWRFRFFXVSQHXPRQLDH31663
SHQLFLOOLQVXVFHSWLEOH6WUHSWRFRFFXVSQHXPRQLDH3663PDFUROLGHUHVLVWDQW6WUHSWRFRFFXV
SQHXPRQLDHTXLQRORQHUHVLVWDQW6WUHSWRFRFFXVSQHXPRQLDHDQGPXOWLSOHGUXJUHVLVWDQW
6WUHSWRFRFFXVSQHXPRQLDH0'563HDFKFRQVLGHUHGGLVWLQFWSDWKRJHQV$SDWKRJHQZLOO
EHFRQVLGHUHGPXOWLSOHGUXJUHVLVWDQWLIVXVFHSWLELOLW\WHVWLQJVKRZVUHVLVWDQFHWRRUPRUHRI
WKHFODVVHVRIDQWLELRWLFVSURYLGHGEHORZH[FHSWLQWKHFDVHRI056$ZKHUHSHQLFLOOLQDQG
FHSKDORVSRULQDUHGXHWRDVLQJOHPHFKDQLVPLQZKLFKFDVHQRQȕODFWDPUHVLVWDQFHVLQ
DGGLWLRQWRR[DFLOOLQZLOOEHFRQVLGHUHGPXOWLGUXJUHVLVWDQW6WUHSWRFRFFXVVSSDQG
6WDSK\ORFRFFXVVSSLVRODWHVUHVLVWDQWWRPDFUROLGHVEXWVXVFHSWLEOHWROLQFRVDPLGHVDQG
'WHVWSRVLWLYH!XJPOZLOOEHFRQVLGHUHGUHVLVWDQWWRERWKPDFUROLGHVDQG
OLQFRVDPLGHV6XVFHSWLELOLW\ZLOOEHEDVHGRQWKHPRVWFXUUHQW&/6,JXLGHOLQHVIRUHDFK
DQWLELRWLFRULIXQDYDLODEOHRQ)'$ODEHOHGVXVFHSWLELOLW\FULWHULD$QWLELRWLFVWKDWGHILQH
UHVLVWDQFHIRUWKHFODVVDUHOLVWHGDVIROORZV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 3HQLFLOOLQV±SHQLFLOOLQ
 )OXRURTXLQRORQHV±PR[LIOR[DFLQ
 &HSKDORVSRULQV±FHIWULD[RQH
 /LQFRVDPLGHV±FOLQGDP\FLQ
 0DFUROLGHV±D]LWKURP\FLQRUHU\WKURP\FLQ
 7HWUDF\FOLQHV±WHWUDF\FOLQHRUGR[\F\FOLQH
 )RODWH3DWKZD\,QKLELWRUV±7ULPHWKRSULPVXOIDPHWKR[D]ROH
 *O\FRSHSWLGHV±YDQFRP\FLQ
 2[D]ROLGLQRQH±OLQH]ROLG

,IWKHUHDUHPXOWLSOHVSHFLPHQVRIWKHVDPHWHVWLQJPRGDOLW\IURPWKHVDPHWLPHSRLQW
ZKHUHWKHVDPHSDWKRJHQLVLVRODWHGRQO\WKHSDWKRJHQZLWKWKHKLJKHVW0,&WRWKHWHVW
DUWLFOHUHFHLYHGZLOOEHXVHG,IWKHSDWKRJHQVKDYHWKHVDPH0,&WRWKHWHVWDUWLFOHUHFHLYHG
WKHSDWKRJHQZLWKWKHORZHVWDFFHVVLRQQXPEHUZLOOEHXVHG7KH*UDP
VVWDLQDVVRFLDWHG
ZLWKWKHVHOHFWHGSDWKRJHQZLOOEHXWLOL]HGIRUDQDO\VLV
,IWKHVDPHSDWKRJHQLVLGHQWLILHGIURPWKHEORRGDQGUHVSLUDWRU\VDPSOHIRUWDEOHVSURYLGLQJ
0,&RUGLVNGLIIXVLRQGDWDWKHSDWKRJHQZLWKWKHKLJKHVW0,&WRWKHWHVWDUWLFOHUHFHLYHGZLOO
EHXVHG

&OLQLFDOO\(YDOXDEOH&(3RSXODWLRQV
7ZR&(SRSXODWLRQVZLOOEHGHILQHGWKH&((27DQGWKH&(37(6XEMHFWVZLOOEH
LQFOXGHGLQRUH[FOXGHGIURPWKH&(DQDO\VLVVHWVEDVHGRQWKHFULWHULDOLVWHGEHORZ

'LDJQRVLVRI&$%3
7REHLQFOXGHGLQWKH&((27DQG&(37(SRSXODWLRQVVXEMHFWVPXVWPHHWWKHIROORZLQJ
SURWRFROGHILQHGLQFOXVLRQFULWHULDWKDWGHVFULEHWKH&$%3
,QFOXVLRQ&ULWHULRQ+DVDWOHDVWRIWKHIROORZLQJV\PSWRPV
 &RXJK
 3URGXFWLRQRISXUXOHQWVSXWXP
 '\VSQHDVKRUWQHVVRIEUHDWK
 3OHXULWLFFKHVWSDLQ

,QFOXVLRQ&ULWHULRQ+DVDWOHDVWRIWKHIROORZLQJDEQRUPDOYLWDOVLJQV
 )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUSRRUUHFWDOWHPSHUDWXUH!R&
>R)@RUR&>R)@


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 +\SRWHQVLRQZLWKV\VWROLFEORRGSUHVVXUH6%3PP+J
 +HDUWUDWH!ESP
 5HVSLUDWRU\UDWH55!EUHDWKVPLQXWH

,QFOXVLRQ&ULWHULRQ+DVDWOHDVWFOLQLFDOVLJQRUODERUDWRU\ILQGLQJDVVRFLDWHGZLWK
&$%3
 +\SR[HPLD3DUWLDOSUHVVXUHRIDUWHULDOR[\JHQ3D2PP+JE\DUWHULDOEORRGJDV
$%*
 3K\VLFDOH[DPLQDWLRQILQGLQJVRISXOPRQDU\FRQVROLGDWLRQGXOOQHVVRQSHUFXVVLRQ
EURQFKLDOEUHDWKVRXQGVHJRSKRQ\UDOHVUKRQFKLRUGHFUHDVHGEUHDWKVRXQGV
 $QHOHYDWHGWRWDOZKLWHEORRGFHOO:%&FRXQW!FHOOVPPRUOHXFRSHQLD
:%&FHOOVPPRUHOHYDWHGLPPDWXUHQHXWURSKLOV!EDQGIRUPV
UHJDUGOHVVRIWRWDOSHULSKHUDO:%&FRXQW

,QFOXVLRQ&ULWHULRQ5DGLRJUDSKLFDOO\FRQILUPHGSQHXPRQLDLHQHZRUSURJUHVVLYH
SXOPRQDU\LQILOWUDWHVRQFKHVW;UD\&;5RUFKHVWFRPSXWHGWRPRJUDSK\&7VFDQ
FRQVLVWHQWZLWKDFXWHEDFWHULDOSQHXPRQLDZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIWHVW
DUWLFOH
,IWKHLPDJLQJVWXG\LVGRQHPRUHWKDQKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHEXW
ZLWKLQKRXUVWKHVXEMHFWZLOOEHLQFOXGHGLQWKH&(SRSXODWLRQVDVORQJDVWKHLPDJLQJ
VWXG\VKRZVDQHZRUSURJUHVVLYHSXOPRQDU\LQILOWUDWHVFRQVLVWHQWZLWKDFXWHEDFWHULDO
SQHXPRQLD
,QFOXVLRQ&ULWHULRQ+DYHGLVHDVHFDWHJRUL]HGDVEHLQJ32575LVN&ODVV,,,,,RU,9DW
6FUHHQLQJ
7KH6SRQVRU0HGLFDO0RQLWRUZLOODOVRUHYLHZWKRVHVXEMHFWVZLWKDFRQFRPLWDQWLOOQHVV
LGHQWLILHGDIWHUEDVHOLQHWKDWFRXOGKDYHSUHVHQWHGDWEDVHOLQHDVSQHXPRQLD,ILWLV
GHWHUPLQHGWKDWWKHVXEMHFWGRHVQRWKDYHSQHXPRQLDEXWKDGDQRWKHUFRQGLWLRQVXFKDVOXQJ
FDQFHUDWEDVHOLQHWKHVXEMHFWZLOOQRWEHHYDOXDEOHIRUWKH&(SRSXODWLRQV

3ULRU$QWLELRWLF7KHUDS\
6XEMHFWVZLOOEHH[FOXGHGIURPWKH&(SRSXODWLRQVLIWKH\PHHWWKHSULRUDQWLELRWLFH[FOXVLRQ
FULWHULD
([FOXVLRQ&ULWHULRQ+DVUHFHLYHGRUPRUHGRVHVRIDSRWHQWLDOO\HIIHFWLYHV\VWHPLF
DQWLEDFWHULDOWUHDWPHQWZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHDVXEMHFWZLOO
EHFRQVLGHUHGWRKDYHUHFHLYHGDSRWHQWLDOO\HIIHFWLYHV\VWHPLFDQWLEDFWHULDOWUHDWPHQWLIWKH
SDWKRJHQLGHQWLILHGDVFDXVLQJLQIHFWLRQLVVKRZQWREHVXVFHSWLEOHWRWKHDQWLEDFWHULDOJLYHQ
RULQWKHFLUFXPVWDQFHZKHUHDSDWKRJHQLVQRWLGHQWLILHGLIWKHDQWLEDFWHULDODJHQWLV
DSSURYHGIRUWUHDWPHQWRISQHXPRQLDRULVNQRZQWRKDYHDFWLYLW\DJDLQVWDQ\RIWKHOHDGLQJ


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
FDXVHVRI&$%3>HJ6WUHSWRFRFFXVSQHXPRQLDH+DHPRSKLOXVLQIOXHQ]DH0RUD[HOOD
FDWDUUKDOLV6WDSK\ORFRFFXVDXUHXV/HJLRQHOODSQHXPRSKLOD@(;&(37,216XEMHFWVPD\
EHHOLJLEOHGHVSLWHSULRUDQWLEDFWHULDOWKHUDS\LIWKH\KDYHEHHQWUHDWHGZLWKDVLQJOHGRVHRID
VKRUWDFWLQJDQWLEDFWHULDOLHDQDQWLEDFWHULDOZKRVHVWDQGDUGGRVLQJUHJLPHQLVPRUH
IUHTXHQWWKDQRQFHSHUGD\VHH$SSHQGL[RIWKHSURWRFRO(QUROOPHQWRIVXEMHFWVZKR
UHFHLYHGDVLQJOHGRVHRIDQDOORZHGVKRUWDFWLQJDQWLELRWLFZLWKLQWKHKRXUVSULRUWRWKH
ILUVWGRVHRIWHVWDUWLFOHZLOOEHOLPLWHGWRQRPRUHWKDQRIUDQGRPL]HGVXEMHFWV

&RQFRPLWDQW$QWLELRWLF7KHUDS\
6XEMHFWVZKRUHFHLYHDQ\V\VWHPLFFRQFRPLWDQWDQWLELRWLFWKHUDS\IURPWKHWLPHRIWKHILUVW
GRVHRIWHVWDUWLFOHWKURXJKWKHWLPHRIWKHODVWGRVHRIWHVWDUWLFOHDW(27DQGWKURXJKWKH
37(9LVLWZLWKDVSHFWUXPRIDFWLYLW\DJDLQVWWKHNQRZQRUSRWHQWLDOLQIHFWLQJSDWKRJHQV
UHVSRQVLEOHIRUWKH&$%3XQGHUVWXG\ZLOOEHH[FOXGHGIURPWKH&((27DQG&(37(
SRSXODWLRQVUHVSHFWLYHO\XQOHVVWKHVXEMHFWUHFHLYHVWKHDQWLELRWLFWKHUDS\IRUWUHDWPHQWRI
WKH&$%3GXHWRLQVXIILFLHQWWKHUDSHXWLFHIIHFWRIWKHWHVWDUWLFOHLHIRUSURJUHVVLRQRU
GHYHORSPHQWRIQHZV\PSWRPVRI&$%3RUGHYHORSPHQWRILQIHFWLRXVFRPSOLFDWLRQVRI
&$%3
6XEMHFWVZKRUHFHLYHDV\VWHPLFFRQFRPLWDQWDQWLELRWLFWKDWLVQRWHIIHFWLYHDJDLQVWWKH
EDVHOLQHSDWKRJHQRULIQRSDWKRJHQLVLVRODWHGDQGWKHDQWLELRWLFGRHVQRWKDYHDFWLYLW\
DJDLQVW&$%3SDWKRJHQVZLOOEHLQFOXGHGLQWKH&((27DQG&(37(SRSXODWLRQV

7HVW$UWLFOH7KHUDS\
6XEMHFWVPXVWPHHWDOORIWKHIROORZLQJWREHLQFOXGHGLQWKH&(SRSXODWLRQV
 5HFHLYHGDWOHDVWGRVHRIDFWLYHWHVWDUWLFOHDQGWKHFRUUHFWWHVWDUWLFOHEDVHGRQWKH
UDQGRPL]DWLRQDVVLJQPHQW
 6WXG\SHUVRQQHOLQYROYHGLQWKHDVVHVVPHQWRIHIILFDF\UHPDLQHGEOLQGHGWRVWXG\
WUHDWPHQWXQOHVVDWUHDWPHQWOLPLWLQJDGYHUVHHYHQWRFFXUUHGZKLFKUHTXLUHGHPHUJHQF\
XQEOLQGLQJ
 (YDOXDEOHIDLOXUH7KHVXEMHFWUHFHLYHGWKHILUVWGRVHVRIDFWLYHWHVWDUWLFOH
RPDGDF\FOLQHJURXSRUILUVWGRVHVRIDFWLYHWHVWDUWLFOHPR[LIOR[DFLQJURXSDQGWKH
LQYHVWLJDWRUFODVVLILHVWKHVXEMHFWDVD&OLQLFDO)DLOXUHDWWKH(279LVLW&((27
SRSXODWLRQRUWKHRYHUDOO&OLQLFDO5HVSRQVHEDVHGRQWKHLQYHVWLJDWRU
VDVVHVVPHQWDW
WKH37(9LVLW&(37(SRSXODWLRQLV&OLQLFDO)DLOXUH
 (YDOXDEOHVXFFHVV7KHVXEMHFWUHFHLYHGWKHILUVWGRVHVRIDFWLYHWHVWDUWLFOH
RPDGDF\FOLQHJURXSRUWKHILUVWGRVHVRIDFWLYHWHVWDUWLFOHPR[LIOR[DFLQJURXSDQG
WKHLQYHVWLJDWRUFODVVLILHVWKHVXEMHFWDVD&OLQLFDO6XFFHVVDWWKH(279LVLW&((27
SRSXODWLRQRUWKHRYHUDOO&OLQLFDO5HVSRQVHEDVHGRQWKHLQYHVWLJDWRU
VDVVHVVPHQWDW
WKH37(9LVLW&(37(SRSXODWLRQLV&OLQLFDO6XFFHVV



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

&OLQLFDO2XWFRPH$VVHVVPHQW
6XEMHFWVPXVWPHHWWKHIROORZLQJWREHLQFOXGHGLQWKH&(SRSXODWLRQV
 )RUWKH&((27SRSXODWLRQ
R &RPSOHWHGWKHLQYHVWLJDWRU¶VDVVHVVPHQWRIFOLQLFDOUHVSRQVHLHZDVQRWGHHPHGDQ
LQGHWHUPLQDWHRXWFRPHDWWKH(279LVLWDQG
R 7KH(279LVLWRFFXUUHGRQWKHGD\RIRUZLWKLQGD\VIROORZLQJWKHODVWGRVHRIWHVW
DUWLFOH

 )RUWKH&(37(SRSXODWLRQ
R 7KHRYHUDOO&OLQLFDO5HVSRQVHEDVHGRQWKHLQYHVWLJDWRU
VDVVHVVPHQWDWWKH37(
9LVLWLVQRW,QGHWHUPLQDWH
R 7KH37(9LVLWRFFXUUHGWRGD\VDIWHUWKHODVWGRVHRIWHVWDUWLFOHXQOHVVWKH
VXEMHFWZDVFRQVLGHUHGWREHD&OLQLFDO)DLOXUHEDVHGRQWKHLQYHVWLJDWRU¶VDVVHVVPHQW
DWWKH(279LVLWRUWKHSDWLHQWGLHGDIWHU(27DQGEHIRUH37(


%DVHOLQH0HGLFDO(YHQWV
6XEMHFWVZLOOEHH[FOXGHGIURPWKH&(SRSXODWLRQVLIWKHLQYHVWLJDWRUKDVGRFXPHQWHGLQWKH
H&5)WKDWWKH\PHHWDQ\RQHRIWKHIROORZLQJSURWRFROGHILQHGH[FOXVLRQFULWHULDDWEDVHOLQH
LHSULRUWRUDQGRPL]DWLRQ
([FOXVLRQ&ULWHULRQ,VNQRZQRUVXVSHFWHGWRKDYH&$%3FDXVHGE\DSDWKRJHQWKDWPD\
EHUHVLVWDQWWRHLWKHUWHVWDUWLFOHHJ.OHEVLHOODSQHXPRQLDH3VHXGRPRQDVDHUXJLQRVD
3QHXPRF\VWLVMLURYHFLREOLJDWHDQDHUREHVP\FREDFWHULDIXQJDOSDWKRJHQV
([FOXVLRQ&ULWHULRQ6XVSHFWHGRUFRQILUPHGHPS\HPDDSDUDSQHXPRQLFSOHXUDOHIIXVLRQ
LVQRWDQH[FOXVLRQFULWHULDRUOXQJDEVFHVV
([FOXVLRQ&ULWHULRQ6XEMHFWVZLWKNQRZQRUVXVSHFWHGKRVSLWDODFTXLUHGSQHXPRQLD
+$3RUKHDOWKFDUHDVVRFLDWHGSQHXPRQLD+&$3+$3LVGHILQHGDVSQHXPRQLDZLWK
RQVHWRIFOLQLFDOVLJQVDQGV\PSWRPVKRXUVDIWHUKRVSLWDOL]DWLRQLQDQDFXWHLQVXEMHFW
KHDOWKFDUHIDFLOLW\+&$3LVGHILQHGDVSQHXPRQLDDFTXLUHGLQDORQJWHUPFDUHRU
VXEDFXWHLQWHUPHGLDWHKHDOWKFDUHIDFLOLW\HJQXUVLQJKRPHRULQDVXEMHFWDGPLWWHGZLWK
SQHXPRQLDIROORZLQJDUHFHQWKRVSLWDOL]DWLRQGLVFKDUJHGZLWKLQGD\VRIFXUUHQW
DGPLVVLRQDQGSUHYLRXVO\KRVSLWDOL]HGIRUKRXUV
([FOXVLRQ5HTXLUHVDFXWHSKDUPDFRORJLFLQWHUYHQWLRQWRVWDELOL]HEORRGSUHVVXUH%3
DQGRUDGHTXDWHWLVVXHSHUIXVLRQ25KDVHYLGHQFHRIVHSWLFVKRFNGHILQHGE\$//RIWKH
IROORZLQJ
 )HYHURUK\SRWKHUPLDGRFXPHQWHGE\WKHLQYHVWLJDWRUSRRUUHFWDOWHPSHUDWXUH!&
>)@RU&>)@
 +HDUWUDWH!EHDWVPLQXWH


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 55!EUHDWKVPLQXWH
 :%&!FHOOVPPRUFHOOVPPRU!LPPDWXUHEDQGIRUPV
UHJDUGOHVVRIWKHWRWDOSHULSKHUDO:%&FRXQW
 +\SRWHQVLRQZLWK6%3PP+JGHVSLWHDQLYIOXLGFKDOOHQJHRIFFNJRYHUD
PLQXWHSHULRG
 3HUIXVLRQDEQRUPDOLWLHVWKDWPD\LQFOXGHEXWDUHQRWOLPLWHGWRODFWLFDFLGRVLVEORRG
ODFWDWHFRQFHQWUDWLRQPPRO/ROLJXULDRUDFXWHDOWHUDWLRQLQPHQWDOVWDWXV

([FOXVLRQ&ULWHULRQ.QRZQRUVXVSHFWHGSULPDU\RUPHWDVWDWLFQHRSODVWLFOXQJGLVHDVH
DVSLUDWLRQSQHXPRQLDF\VWLFILEURVLVEURQFKLHFWDVLVEURQFKLDOREVWUXFWLRQHJ
SRVWREVWUXFWLYHSQHXPRQLDFKURQLFQHXURORJLFDOGLVRUGHUSUHYHQWLQJFOHDUDQFHRI
SXOPRQDU\VHFUHWLRQVRUVHYHUHFKURQLFREVWUXFWLYHSXOPRQDU\GLVHDVH&23'

0LFURELRORJLFDOO\(YDOXDEOH0(3RSXODWLRQV
7KH0((27DQG0(37(SRSXODWLRQVZLOOFRQVLVWRIDOOVXEMHFWVLQERWKWKHPLFUR,77DQG
WKH&((27DQG&(37(SRSXODWLRQVUHVSHFWLYHO\

(YDOXDELOLW\5HYLHZ7HDP

0HPEHUVKLSDQG5HVSRQVLELOLWLHV
7KH(YDOXDELOLW\5HYLHZ7HDP(57ZLOOUHYLHZERWKFOLQLFDODQGPLFURELRORJLFDOGDWDIRU
GHWHUPLQDWLRQRIFULWHULDXVHGWRDVVHVVLQFOXVLRQLQWKHDQDO\VLVSRSXODWLRQVDQGIRU
GHWHUPLQDWLRQRIEDVHOLQHDQGSRVWEDVHOLQHSDWKRJHQV(57PHPEHUVZLOOEHEOLQGHGWR
WUHDWPHQWDVVLJQPHQWDQGZLOOUHYLHZWKHGDWDFRQFXUUHQWZLWKWKHFRQGXFWRIWKHVWXG\7KH
(57ZLOOEHFRQGXFWHGLQDFFRUGDQFHZLWKWKH(573URFHVV'RFXPHQW

3URFHVVIRU'HWHUPLQLQJ,QFOXVLRQLQ3RSXODWLRQV
,QFOXVLRQLQWRWKH,77DQG6DIHW\SRSXODWLRQVZLOOEHGHWHUPLQHGSURJUDPPDWLFDOO\IURPWKH
H&5)GDWD,QFOXVLRQLQWRWKH&(SRSXODWLRQVZLOOEHGHWHUPLQHGSURJUDPPDWLFDOO\IURPWKH
H&5)GDWDDQGWKHPDQXDOUHYLHZFRQGXFWHGE\WKH(577KH(57PD\UHYLHZVXEMHFWGDWD
WRFRQILUPWKDWSRSXODWLRQFULWHULDDUHVDWLVILHG
,QFOXVLRQLQWRWKHPLFUR,77SRSXODWLRQZLOOEHGHWHUPLQHGSURJUDPPDWLFDOO\E\
LQFRUSRUDWLQJWKHRXWFRPHRIWKHUHYLHZRIWKHLVRODWHVE\WKH(577KH(57ZLOOGHWHUPLQH
ZKHWKHUHDFKLVRODWHEDVHOLQHDQGSRVWEDVHOLQHLVFRQVLGHUHGDSDWKRJHQEDVHGRQDUHYLHZ
RILQIRUPDWLRQIURPEDVHOLQHVDPSOHVLQFOXGLQJ*UDPVWDLQUHVXOWVDQGORFDODQGFHQWUDO
ODERUDWRU\JHQXVDQGVSHFLHVLGHQWLILFDWLRQ,QFOXVLRQLQWRWKH0(SRSXODWLRQVZLOOEH
GHWHUPLQHGSURJUDPPDWLFDOO\
5HYLHZRIGDWD6SRQVRUGHWHUPLQDWLRQRIHYDOXDELOLW\DQGILQDOVXEMHFWSRSXODWLRQ
FODVVLILFDWLRQZLOOEHSHUIRUPHGLQDEOLQGHGPDQQHUSULRUWRGDWDEDVHORFNDQGXQEOLQGLQJ
ZLWKWKHH[FHSWLRQRIWKRVHFULWHULDUHTXLULQJWKHVXEMHFW
VDFWXDOWUHDWPHQWDVVLJQPHQWIRU


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
H[DPSOHWKHUHTXLUHPHQWIRUWKHVXEMHFWWRKDYHUHFHLYHGWKHFRUUHFWWHVWDUWLFOHSHUWKH
UDQGRPL]DWLRQDVVLJQPHQW)RUWKHFULWHULDUHTXLULQJWKHVXEMHFW
VDFWXDOWUHDWPHQW
DVVLJQPHQWSRSXODWLRQGHWHUPLQDWLRQZLOOEHFRPSOHWHGSURJUDPPDWLFDOO\

6XEJURXSV
$QDO\VHVZLOOEHFRQGXFWHGDVGHVFULEHGLQ6HFWLRQIRUVXEJURXSVGHILQHGE\WKH
UDQGRPL]DWLRQVWUDWLILFDWLRQIDFWRUV32575LVN&ODVV,,YV,,,,9UHFHLSWRIDQDOORZHG
DQWLEDFWHULDOWKHUDS\LQWKHKRXUVSULRUWRVWXG\WUHDWPHQW\HVYVQRJHRJUDSKLFUHJLRQ
:HVWHUQ(XURSH1RUWK$PHULFD(DVWHUQ(XURSHYV5HVWRI:RUOG$QDO\VHVRI(DUO\
&OLQLFDO5HVSRQVHLQWKH,77SRSXODWLRQDQGRYHUDOODVVHVVPHQWRIFOLQLFDOUHVSRQVHDWWKH
37(YLVLWLQWKH,77DQG&(37(SRSXODWLRQVZLOODOVREHFRQGXFWHGLQWKHIROORZLQJ
VXEJURXSVEDFWHUHPLFVXEMHFWVGHILQHGDVVXEMHFWVZLWKDSRVLWLYHEORRGFXOWXUHDWEDVHOLQH
PLFUR,77SRSXODWLRQE\&85%6FRUHDQGVXEMHFWVPHHWLQJWKHV\VWHPLFLQIODPPDWRU\
UHVSRQVHV\QGURPH6,56FULWHULDDWEDVHOLQH&85%6FRUHLVGHULYHGIURPWKHH&5)
GDWDDQGUDQJHVIURPZKHUHSRLQWLVJLYHQIRUHDFKRIWKHIROORZLQJDWEDVHOLQH
FRQIXVLRQEORRGXUHDQLWURJHQ!PJG/XUHD!PPRO/UHVSLUDWRU\UDWH
EUHDWKVPLQV\VWROLFEORRGSUHVVXUHPP+JRUGLDVWROLFEORRGSUHVVXUH
PP+JDQGDJH\HDUV&RQIXVLRQLVGHILQHGDVDOWHUHGPHQWDOVWDWXVDVUHFRUGHG
RQWKH32575LVN&ODVV'HWHUPLQDWLRQH&5)6,56LVGHILQHGDVKDYLQJRUPRUHRIWKH
IROORZLQJFULWHULDWHPSHUDWXUH&RU!&RUDORURUDOHTXLYDOHQWKHDUWUDWH
!ESPUHVSLUDWRU\UDWH!EUHDWKVPLQRU:%&FRXQWFHOOVPPRU
!FHOOVPPRU!EDQGV
([SORUDWRU\DQDO\VHVLQRWKHUVXEJURXSVPD\DOVREHFRQGXFWHG


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

&+$1*(6,1&21'8&7253/$11('$1$/<6(6)5207+(
35272&2/
7KHH[SDQGHGPLFUR,77SRSXODWLRQZDVDGGHGDQGVHOHFWHGDQDO\VHVDUHFRQGXFWHGLQWKLV
SRSXODWLRQ


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

29(5$//67$7,67,&$/&216,'(5$7,216

*HQHUDO&RQYHQWLRQV
7KHIROORZLQJJHQHUDOFRPPHQWVDSSO\WRDOOVWDWLVWLFDODQDO\VHVDQGGDWDSUHVHQWDWLRQV
 6XPPDULHVZLOOLQFOXGHIUHTXHQF\DQGSHUFHQWDJHVIRUFDWHJRULFDOGDWDIUHTXHQF\DQG
PHGLDQIRURUGLQDOGDWDDQGIUHTXHQF\PHDQVWDQGDUGGHYLDWLRQDQGPHGLDQPLQLPXP
DQGPD[LPXPIRUTXDQWLWDWLYHGDWD
 'XUDWLRQYDULDEOHVZLOOEHFDOFXODWHGXVLQJWKHJHQHUDOIRUPXODHQGGDWHVWDUWGDWH
 &KDQJHIURPEDVHOLQHZLOOEHFDOFXODWHGIRUHDFKVXEMHFWDWWKHVSHFLILHGWLPHSRLQWDVWKH
YDOXHDWWKHVSHFLILHGWLPHSRLQWPLQXVWKHEDVHOLQHYDOXH
 ,IWKHUHSRUWHGYDOXHRIDFOLQLFDOODERUDWRU\SDUDPHWHUFDQQRWEHXVHGLQDVWDWLVWLFDO
VXPPDU\WDEOHHJDFKDUDFWHUVWULQJLVUHSRUWHGIRUDSDUDPHWHURIWKHQXPHULFDOW\SHD
FRGHGYDOXHPXVWEHDSSURSULDWHO\GHWHUPLQHGDQGXVHGLQWKHVWDWLVWLFDODQDO\VHV,Q
JHQHUDODYDOXHRUORZHUDQGXSSHUOLPLWRIQRUPDOUDQJHVXFKDVµ¶RUµ¶ZLOOEH
WUHDWHGDVµ¶RUµ¶UHVSHFWLYHO\DQGDYDOXHVXFKDVµ!¶ZLOOEHWUHDWHGDV¶¶
+RZHYHUWKHDFWXDOYDOXHVDVUHSRUWHGLQWKHGDWDEDVHZLOOEHSUHVHQWHGLQGDWDOLVWLQJV
'DWDZLOOEHUHYLHZHGRQDQRQJRLQJEDVLVLQDEOLQGHGPDQQHUWRDVVHVVWKHIUHTXHQF\RI
RFFXUUHQFHRIODERUDWRU\SDUDPHWHUVUHSRUWHGDVDFKDUDFWHUVWULQJ
 ,QGLYLGXDOVXEMHFWOLVWLQJVRIDOOGDWDUHSUHVHQWHGRQWKHH&5)VZLOOEHSURYLGHGWR
IDFLOLWDWHWKHLQYHVWLJDWLRQRIWDEXODWHGYDOXHVDQGWRDOORZIRUWKHFOLQLFDOUHYLHZRIDOO
HIILFDF\DQGVDIHW\SDUDPHWHUV
 9HUVLRQRUKLJKHURI6$6VWDWLVWLFDOVRIWZDUHSDFNDJHZLOOEHXVHGWRSURYLGHDOO
VXPPDULHVOLVWLQJVJUDSKVDQGVWDWLVWLFDODQDO\VHV


%DVHOLQH'HILQLWLRQ
,QJHQHUDOEDVHOLQHLVGHILQHGDVWKHYDOXHFORVHVWWREXWSULRUWRWKHLQLWLDWLRQRIWHVWDUWLFOH
DGPLQLVWUDWLRQ,IQRWHVWDUWLFOHLVUHFHLYHGEDVHOLQHLVGHILQHGDVWKHYDOXHFORVHVWWREXW
SULRUWRUDQGRPL]DWLRQ
)RUSDWKRJHQGHWHUPLQDWLRQEDVHOLQHLVGHILQHGDVHLWKHU'D\±RUWKHKRXUSHULRG
SULRUWRWKHDGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOHRULIWKHVXEMHFWLVXQDEOHWR
SURGXFHDVSXWXPVDPSOHDWEDVHOLQHRUWKHVSXWXPVDPSOHGRHVQRWKDYHDQDGHTXDWH*UDP
VWDLQDVSHFLPHQREWDLQHGZLWKLQKRXUVDIWHUWKHILUVWGRVHRIWHVWDUWLFOHPD\EHXVHGDV
EDVHOLQH,IQRWHVWDUWLFOHLVUHFHLYHGIRUSDWKRJHQGHWHUPLQDWLRQ6WXG\'D\LVGHILQHG
EDVHGRQGDWHRIUDQGRPL]DWLRQ
)RUDQDO\VHVRIYLWDOVLJQVDQG(&*VLIQRYDOXHLVDYDLODEOHSULRUWRWKHLQLWLDWLRQRIWHVW
DUWLFOHDGPLQLVWUDWLRQDYDOXHZLWKLQKRXUVDIWHULQLWLDWLRQRIWHVWDUWLFOHDGPLQLVWUDWLRQFDQ
EHXVHGDVEDVHOLQH


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

+DQGOLQJRI0LVVLQJ'DWD
0LVVLQJGDWDZLOOEHKDQGOHGDVRXWOLQHGEHORZ
 $OOPLVVLQJDQGSDUWLDOGDWHVIRUDGYHUVHHYHQWVRUIRUPHGLFDWLRQVUHFHLYHGDIWHU
UDQGRPL]DWLRQZLOOEHTXHULHGIRUDYDOXH,IQRYDOXHFDQEHREWDLQHGVXEVWLWXWLRQVZLOO
EHPDGHDVGHWDLOHGLQ$SSHQGL[7KHVHVXEVWLWXWLRQVZLOOEHXVHGLQFDOFXODWLRQV
KRZHYHUWKHDFWXDOYDOXHUHFRUGHGRQWKHH&5)ZLOOEHXVHGLQDOOOLVWLQJV
 0LVVLQJVWDUWDQGVWRSWLPHVIRUSULRUDQGFRQFRPLWDQWDQWLELRWLFVZLOOEHTXHULHGIRUD
YDOXH,IQRYDOXHFDQEHREWDLQHGEXWWKHVLWHLQGLFDWHVWKHDQWLELRWLFZDVUHFHLYHGRQVHW
WLPHSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHZLOOEHXVHGIRUWKHRQVHWWLPH,IWKHVLWH
DOVRLQGLFDWHVWKDWWKHHQGWLPHZDVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOHZLOOEH
XVHGIRUHQGWLPH7KHDFWXDOYDOXHEODQNZLOOEHUHFRUGHGRQWKHH&5)DQGZLOOEH
XVHGLQWKHOLVWLQJV
 0LVVLQJWLPHVIRUDVVHVVPHQWVRI&$%3V\PSWRPVZLOOEHTXHULHGIRUDYDOXH,I
PLQXWHVDUHQRWDYDLODEOHWKHWLPHZLOOEHUHFRUGHGWRWKHFORVHVWKRXU
 ,IQRYDOXHFDQEHREWDLQHGIRUDOORWKHUWLPHVIRUHYHQWVDQGDVVHVVPHQWVRFFXUULQJDIWHU
UDQGRPL]DWLRQWKHWLPHZLOOQRWEHLPSXWHGEXWZLOOUHPDLQPLVVLQJ
 7KHVHYHULW\DQGFDXVDOLW\DVVHVVPHQWIRUDGYHUVHHYHQWVFDQQRWEHPLVVLQJ0LVVLQJ
GDWDZLOOEHTXHULHGIRUDYDOXH

)RUFOLQLFDODQGPLFURELRORJLFDOUHVSRQVHPLVVLQJGDWDZLOOEHKDQGOHGDVIROORZV
 )RUWKHSULPDU\RXWFRPHPHDVXUH(DUO\&OLQLFDO5HVSRQVHDWWRKRXUVDIWHU
DGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOH
R 7KHVXEMHFWZLOOEHFRQVLGHUHGWRKDYHPLVVLQJGDWDLIDQDVVHVVPHQWRIDOORIWKH
&$%3V\PSWRPVFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDLVQRW
PDGHIURPWRKRXUVDIWHUWKHDGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOH
XQOHVVWKHVXEMHFWLVFRQVLGHUHGD&OLQLFDO)DLOXUHIRUDQRWKHUUHDVRQ6XEMHFWVZKR
GRQRWKDYHDWOHDVWV\PSWRPVRI&$%3DWEDVHOLQHZLOODOVREHFRQVLGHUHGWRKDYH
PLVVLQJGDWDXQOHVVWKHVXEMHFWLVFRQVLGHUHGD&OLQLFDO)DLOXUHIRUDQRWKHUUHDVRQ
6XEMHFWVZLWKPLVVLQJGDWDZLOOEHGHILQHGDVDQ,QGHWHUPLQDWHUHVSRQVHZKLFKLV
HVVHQWLDOO\D&OLQLFDO)DLOXUHIRUWKHSULPDU\DQDO\VLVLQWKH,77SRSXODWLRQ
R ,IWKHWLPHRIDGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOHLVPLVVLQJWKHVXEMHFWZLOO
EHGHILQHGDVDQ,QGHWHUPLQDWHUHVSRQVHXQOHVVWKHVXEMHFWLVFRQVLGHUHGD&OLQLFDO
)DLOXUHIRUDQRWKHUUHDVRQZKLFKLVHVVHQWLDOO\D&OLQLFDO)DLOXUHIRUWKHSULPDU\
DQDO\VLVLQWKH,77SRSXODWLRQ
 )RUWKHVHFRQGDU\RXWFRPHPHDVXUHVLQYHVWLJDWRU¶VDVVHVVPHQWRI&OLQLFDO5HVSRQVHDW
WKH(27DQG37(9LVLWV
R 6XEMHFWVZLOOEHGHILQHGDVDQ,QGHWHUPLQDWHLIWKHLQYHVWLJDWRUFDQQRWGHWHUPLQH
ZKHWKHUWKHVXEMHFWLVD&OLQLFDO6XFFHVVRU)DLOXUHDWWKH(27RU37(9LVLWVRUWKH
VXEMHFWKDVDPLVVLQJUHVSRQVHVHH7DEOH%\GHILQLWLRQVXEMHFWVZLWKDQ
,QGHWHUPLQDWHUHVSRQVHDUHLQFOXGHGLQWKHGHQRPLQDWRUIRUDQDO\VHVLQWKH,77DQG


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
PLFUR,77SRSXODWLRQVDQGWKXVDUHFRQVLGHUHG&OLQLFDO)DLOXUHV6XEMHFWVZLWKDQ
,QGHWHUPLQDWHUHVSRQVHDUHH[FOXGHGIURPWKH&((27&(37(0((27DQG
0(37(SRSXODWLRQV
 )RUPLFURELRORJLFUHVSRQVH
R ,IQRSRVWEDVHOLQHVRXUFHVSHFLPHQLVREWDLQHGDQGWKHVXEMHFWKDVDQLQYHVWLJDWRU¶V
DVVHVVPHQWRI&OLQLFDO5HVSRQVHWKHSHUSDWKRJHQPLFURELRORJLFDOUHVSRQVHLVEDVHG
RQWKHLQYHVWLJDWRU¶VDVVHVVPHQWRI&OLQLFDO5HVSRQVHLHWKHUHVSRQVHLVDSUHVXPHG
UHVSRQVH$SHUSDWKRJHQPLFURELRORJLFDOUHVSRQVHDWWKH(279LVLWRU37(9LVLW
ZLOOEHFRQVLGHUHG,QGHWHUPLQDWHRQO\LIWKH&OLQLFDO5HVSRQVHDW(27RU37(LVDOVR
,QGHWHUPLQDWH
 0LVVLQJYDOXHVIRURWKHULQGLYLGXDOGDWDSRLQWVZLOOUHPDLQDVPLVVLQJ0LVVLQJYDOXHV
ZLOOQRWEHLPSXWHGDQGRQO\REVHUYHGYDOXHVZLOOEHXVHGLQGDWDDQDO\VHVDQG
SUHVHQWDWLRQV
 :KHUHLQGLYLGXDOGDWDSRLQWVDUHPLVVLQJFDWHJRULFDOGDWDZLOOEHVXPPDUL]HGEDVHGRQ
UHGXFHGGHQRPLQDWRUVLHRQO\VXEMHFWVZLWKDYDLODEOHGDWDZLOOEHLQFOXGHGLQWKH
GHQRPLQDWRUV


,QWHULP$QDO\VLV
$QLQWHULPDQDO\VLVWRDVVHVVHIILFDF\LVQRWSODQQHG+RZHYHUD'DWDDQG6DIHW\
0RQLWRULQJ&RPPLWWHH'60&ZLOOUHYLHZVDIHW\GDWDHJ$(VDQG6$(VODERUDWRU\GDWD
(&*DVVHVVPHQWVE\XQEOLQGHGWUHDWPHQW$DQGWUHDWPHQW%WUHDWPHQWDVVLJQPHQWRQ
DSSUR[LPDWHO\DTXDUWHUO\EDVLV+RZHYHUWKH'60&FDQFRQYHQHXQVFKHGXOHGPHHWLQJVDV
QHFHVVDU\$GHWDLOHG'60&FKDUWHURXWOLQHVWKHUHVSRQVLELOLWLHVRIWKH'60&IRUPDWDQG
IUHTXHQF\RIWKHPHHWLQJVPHWKRGVRISURYLGLQJGDWDWRDQGIURPWKH'60&VWDWLVWLFDO
LVVXHVGRFXPHQWDWLRQRIWKHPHHWLQJRXWFRPHVDQGFRPPXQLFDWLRQSDWKZD\V

3RROLQJ6WUDWHJ\IRU6WXG\6LWHV
'DWDZLOOEHSRROHGDFURVVVLWHDQGJHRJUDSKLFUHJLRQ:HVWHUQ(XURSH1RUWK$PHULFD
(DVWHUQ(XURSH5HVWRI:RUOG'XHWRWKHODUJHQXPEHURIVLWHVDQGWKHVPDOOQXPEHURI
VXEMHFWVSHUVLWHQRDQDO\VHVE\VLWHZLOOEHFRQGXFWHG$QDO\VHVE\JHRJUDSKLFUHJLRQZLOO
EHFRQGXFWHGDVZHOODVDQDGMXVWHGDQDO\VLVLQFOXGLQJJHRJUDSKLFUHJLRQDVDVWUDWLILFDWLRQ
IDFWRU

9LVLW:LQGRZV8QVFKHGXOHG9LVLWV
)RUWKHSULPDU\HIILFDF\RXWFRPHLIPRUHWKDQRQHFRPSOHWHDVVHVVPHQWRIWKHV\PSWRPVRI
&$%3LVGRQHLQWKH(DUO\&OLQLFDO$VVHVVPHQWZLQGRZRIWRKRXUVDIWHU
DGPLQLVWUDWLRQRIWKHILUVWGRVHRIWHVWDUWLFOHWKHODWHVWZLOOEHXVHG)RUVHFRQGDU\DQG
DGGLWLRQDOHIILFDF\RXWFRPHVWKHGDWDFROOHFWHGDWWKH(27DQG37(9LVLWVUHJDUGOHVVRI
ZKHQWKHVHRFFXUZLOOEHXWLOL]HGLQWKH,77DQGPLFUR,77DQDO\VHV7KH&(DQG0(
SRSXODWLRQVH[FOXGHVXEMHFWVZLWKDYLVLWRFFXUULQJRXWVLGHWKHZLQGRZDOORZHGSHUSURWRFRO


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
)RUHDFKVDIHW\RXWFRPHDQDO\VHVZLOOXWLOL]HDVVHVVPHQWVRFFXUULQJGXULQJWKHVFKHGXOHG
YLVLWZLQGRZVSURYLGHGLQ7DEOH7KXVLIDVXEMHFWKDVDYLVLWRXWVLGHWKHVFKHGXOHGYLVLW
ZLQGRZIRUH[DPSOHD37(9LVLWRFFXUUHGGD\VDIWHUWKHVXEMHFW
VODVWGD\RIWKHUDS\WKH
DVVHVVPHQWZLOOQRWEHVXPPDUL]HGZLWKWKH37(9LVLWEXWZLOOEHFRQVLGHUHGDQXQVFKHGXOHG
DVVHVVPHQW,IDVXEMHFWGRHVQRWKDYHDQDVVHVVPHQWDWDVFKHGXOHGYLVLWDQGDQXQVFKHGXOHG
DVVHVVPHQWZDVWDNHQZLWKLQWKHZLQGRZIRUWKHWLPHSRLQWIRUH[DPSOHWRGD\VDIWHU
WKHVXEMHFW
VODVWGD\RIWKHUDS\IRU37(WKHVHDVVHVVPHQWVZLOOEHVXPPDUL]HGLQWKHE\
WLPHSRLQWDQDO\VHV,IPRUHWKDQRQHPHDVXUHPHQWLVWDNHQGXULQJWKHYLVLWZLQGRZWKH
YDOXHWDNHQRQWKHVFKHGXOHGYLVLWZLOOEHXWLOL]HGRULIQRVFKHGXOHGYLVLWZDVGRQHWKHILUVW
HDUOLHVWPHDVXUHPHQWLQWKHYLVLWZLQGRZZLOOEHXVHG,IPRUHWKDQRQHPHDVXUHPHQWLV
WDNHQRQWKHVDPHGD\WKHDVVHVVPHQWFORVHVWWRWKHVWDUWRIWKHGRVHZLOOEHXVHGIRURQ
WUHDWPHQWYDOXHVDQGWKHODVWPHDVXUHPHQWRQWKHGD\ZLOOEHXVHGIRUSRVWWUHDWPHQWYDOXHV
)RUZRUVWRYHUDOOSRVWEDVHOLQHDQDO\VHVDOODVVHVVPHQWVLQFOXGLQJWKRVHREWDLQHGIURP
XQVFKHGXOHGYLVLWVZLOOEHLQFOXGHG
7DEOH
6FKHGXOHG6WXG\9LVLWV
6WXG\9LVLW
6WXG\'D\
1RWHV
%DVHOLQH
'D\RU'D\
([FHSWZKHUHLQGLFDWHGODVWPHDVXUHPHQWSULRUWRWKHILUVW
GRVHRIWHVWDUWLFOH6FUHHQLQJDVVHVVPHQWVDUHWREHWDNHQ
ZLWKLQKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH,IQR
WHVWDUWLFOHLVWDNHQWKHGDWHDQGWLPHRIUDQGRPL]DWLRQLV
XVHGLQSODFHRIWKHILUVWGRVHRIWHVWDUWLFOH
2Q7UHDWPHQW
'D\'D\
'D\YLVLWLVRSWLRQDOIRUVXEMHFWVWKDWKDYHEHHQVZLWFKHG
WRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPDKRVSLWDO
VHWWLQJ$'D\YLVLWZLOOEHFRQGXFWHGIRUVXEMHFWVZLWK
WUHDWPHQWH[WHQGLQJEH\RQGGD\VXQOHVVWKLVYLVLW
FRLQFLGHVZLWKWKH(279LVLW
(27

:LWKLQGD\VIROORZLQJWKHODVWGRVHRIWHVWDUWLFOH
37(

GD\VDIWHUWKHVXEMHFW
VODVWGD\RIWKHUDS\
)LQDO)ROORZXS
'D\
GD\VDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWHVWDUWLFOH
6WXG\'D\LVFDOFXODWHGUHODWLYHWRWKHILUVWGRVHRIWHVWDUWLFOH'D\WKHUHLVQR'D\±WKHGD\SULRUWR
WKHILUVWGRVHRIWHVWDUWLFOHLV'D\,IQRWHVWDUWLFOHLVWDNHQ6WXG\'D\LVFDOFXODWHGUHODWLYHWRWKHGDWHRI
UDQGRPL]DWLRQ



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI

67$7,67,&$/$1$/<6,60(7+2'6

6XEMHFW'LVSRVLWLRQ
7KHQXPEHURI6FUHHQ)DLOXUHVDQGUHDVRQIRUVFUHHQIDLOXUHZLOOEHSUHVHQWHGRYHUDOODQGE\
JHRJUDSKLFUHJLRQ:HVWHUQ(XURSH1RUWK$PHULFD(DVWHUQ(XURSH5HVWRI:RUOG$
OLVWLQJJURXSHGE\UDQGRPL]DWLRQVWUDWXP32575LVN&ODVVUHFHLSWRISULRUDQWLELRWLFVDQG
JHRJUDSKLFUHJLRQZLOOEHSURYLGHGWKDWLQGLFDWHVWKHVXEMHFW
VGDWHDQGWLPHRI
UDQGRPL]DWLRQUDQGRPL]HGWUHDWPHQWDVVLJQPHQWUDQGRPL]DWLRQQXPEHUDQGEORFNQXPEHU
7KHQXPEHURIVXEMHFWVLQFOXGHGLQHDFKRIWKHDQDO\VLVSRSXODWLRQVLH,776DIHW\
PLFUR,77H[SDQGHGPLFUR,77&((27&(37(0((27DQG0(37(ZLOOEH
VXPPDUL]HGE\WUHDWPHQWJURXSDQGJHRJUDSKLFUHJLRQDQGFRXQWU\$WDEOHZLOOVXPPDUL]H
WKHUHDVRQVIRUH[FOXVLRQIURPHDFKSRSXODWLRQDQGDOLVWLQJZLOOEHSURYLGHGWKDWLQGLFDWHV
HDFKVXEMHFW¶VLQFOXVLRQLQH[FOXVLRQIURPWKHSRSXODWLRQVDQGWKHUHDVRQIRUH[FOXVLRQIURP
HDFKRIWKHSRSXODWLRQV
$OLVWLQJZLOOEHSURYLGHGRIUDQGRPL]HGVXEMHFWVZKRGLGQRWPHHWDOOLQFOXVLRQH[FOXVLRQ
FULWHULDDQGZKLFKFULWHULDZHUHQRWPHW7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVFRPSOHWLQJ
WKHVWXG\GHILQHGDVUHFHLYLQJDWOHDVWGRVHRIWHVWDUWLFOHDQGUHWXUQLQJIRUDOORIWKH(27
37(DQG)ROORZXS9LVLWVQRWFRPSOHWLQJWKHVWXG\PLVVLQJHDFKRIWKH(27DQG37(
9LVLWVDQGSUHPDWXUHO\GLVFRQWLQXLQJIURPWHVWDUWLFOHZLOOEHSUHVHQWHGIRUHDFKWUHDWPHQW
JURXSDQGRYHUDOOIRUWKH,77PLFUR,77DQG&(37(SRSXODWLRQVE\GHILQLWLRQDVXEMHFWLQ
WKH&(37(SRSXODWLRQFDQQRWKDYHPLVVHGWKH37(9LVLWXQOHVVWKHVXEMHFWZDVDFOLQLFDO
IDLOXUHDWWKH(279LVLW5HDVRQVIRUSUHPDWXUHGLVFRQWLQXDWLRQRIWHVWDUWLFOHQRW
FRPSOHWLQJWKHVWXG\DQGIRUPLVVLQJHDFKRIWKHYLVLWVDVUHFRUGHGRQWKHH&5)ZLOOEH
VXPPDUL]HGQXPEHUDQGSHUFHQWDJHE\WUHDWPHQWJURXSIRUWKH,77PLFUR,77DQG
&(37(SRSXODWLRQV3HUFHQWDJHVRIVXEMHFWVGLVFRQWLQXHGIURPWHVWDUWLFOHDQGQRW
FRPSOHWLQJWKHVWXG\ZLOOEHFRPSDUHGEHWZHHQWUHDWPHQWJURXSVXVLQJ)LVKHU¶VH[DFWWHVW
$OLVWLQJRIDOOVXEMHFWVZKRSUHPDWXUHO\GLVFRQWLQXHGIURPWHVWDUWLFOHRUQRWFRPSOHWLQJWKH
VWXG\ZLOOEHSUHVHQWHGDQGWKHSULPDU\UHDVRQIRUGLVFRQWLQXDWLRQRIWHVWDUWLFOHRUQRW
FRPSOHWLQJWKHVWXG\DVZHOODVWKHYLVLWVPLVVHGDQGWKHUHDVRQIRUPLVVLQJWKHYLVLWV
ZLOOEHSURYLGHG

'HPRJUDSKLFVDQG%DVHOLQH&KDUDFWHULVWLFV
([FHSWZKHUHLQGLFDWHGGHPRJUDSKLFGDWDDQGEDVHOLQHFKDUDFWHULVWLFVZLOOEHSUHVHQWHGE\
WUHDWPHQWJURXSIRUWKH,776DIHW\PLFUR,77DQG&(37(SRSXODWLRQV$WDEOHZLOO
SUHVHQWWKHVXEMHFWGHPRJUDSKLFVHJJHQGHUDJHHWKQLFLW\DQGUDFHDQGEDVHOLQH
FKDUDFWHULVWLFVKHLJKWZHLJKW%0,DQGFUHDWLQLQHFOHDUDQFHFDWHJRUL]HGDVVHYHUHUHQDO
LPSDLUPHQW>P/PLQ@PRGHUDWHUHQDOLPSDLUPHQW>P/PLQ@PLOGUHQDO
LPSDLUPHQW>!P/PLQ@DQGQRUPDOUHQDOIXQFWLRQ>!P/PLQ@FROOHFWHGEHIRUH
WKHVWDUWRIWHVWDUWLFOH$JHZLOOEHFDOFXODWHGIURPWKHGDWHRIELUWKWRWKHLQIRUPHGFRQVHQW
GDWH$JHZLOOEHVXPPDUL]HGDVDFRQWLQXRXVYDULDEOHDQGLQWKHFDWHJRULHV\HDUV
!\HDUVDQG!\HDUV7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWV!\HDUVRIDJHZLOO
DOVREHSURYLGHG&UHDWLQLQHFOHDUDQFHZLOOEHFDOFXODWHGIURPWKHORFDOODERUDWRU\GDWDVLQFH


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
WKHVHGDWDZHUHXVHGIRUGHWHUPLQDWLRQRIWKHLQFOXVLRQDQGH[FOXVLRQFULWHULDDQGZLOOEH
GHWHUPLQHGIURPWKH&RFNFURIW*DXOWHTXDWLRQ
DJH>\UV@ZHLJKW>NJ@=
= LI0DOH
= LI)HPDOH

'LIIHUHQFHVEHWZHHQWUHDWPHQWJURXSVZLOOEHDQDO\]HGXVLQJ)LVKHU¶VH[DFWWHVWIRU
GLFKRWRPRXVYDULDEOHVJHQGHUDQGHWKQLFLW\&KLVTXDUHGWHVWIRUFDWHJRULFDOYDULDEOHVDJH
FDWHJRU\DQGUDFHDQGWKH:LOFR[RQ5DQN6XPWHVWIRUFRQWLQXRXVYDULDEOHVDJHKHLJKW
ZHLJKWDQG%0,
$WDEOHZLOOSURYLGHWKHIUHTXHQF\FRXQWVDQGSHUFHQWDJHVE\WUHDWPHQWJURXSIRUVXEMHFWV
ZKRUHFHLYHGSULRUDQWLELRWLFVDVUDQGRPL]HG32575LVN&ODVVIURPWKHH&5)DQGDV
UDQGRPL]HG&85%6FRUHVXEMHFWVPHHWLQJWKHPRGLILHG$PHULFDQ7KRUDFLF6RFLHW\
$76VHYHULW\FULWHULDDQGVXEMHFWVPHHWLQJWKH6,56FULWHULDIRUWKH,77PLFUR,77DQG
&(37(SRSXODWLRQV3257VFRUHZLOODOVREHVXPPDUL]HGDVDFRQWLQXRXVYDULDEOH
&85%VFRUHLVGHULYHGIURPWKHH&5)GDWDDQGUDQJHVIURPZKHUHSRLQWLVJLYHQ
IRUHDFKRIWKHIROORZLQJDWEDVHOLQHFRQIXVLRQEORRGXUHDQLWURJHQ!PJG/
XUHD!PPRO/UHVSLUDWRU\UDWHEUHDWKVPLQV\VWROLFEORRGSUHVVXUHPP+J
RUGLDVWROLFEORRGSUHVVXUHPP+JDQGDJH\HDUV&RQIXVLRQLVGHILQHGDVDOWHUHG
PHQWDOVWDWXVDVUHFRUGHGRQWKH32575LVN&ODVV'HWHUPLQDWLRQH&5)0RGLILHG$76
VHYHULW\DQG6,56FULWHULDDUHGHULYHGIURPWKHH&5)GDWD0RGLILHG$76VHYHULW\FULWHULDLV
GHILQHGDVSUHVHQFHRIRIWKHIROORZLQJFULWHULDDWEDVHOLQHUHVSLUDWRU\UDWH
EUHDWKVPLQ2VDWXUDWLRQRU3D2PP+JXUHDPJG/
:%&FHOOVPPFRQIXVLRQPXOWLOREDULQILOWUDWHVSODWHOHWVFHOOVPP
WHPSHUDWXUHq&DQGV\VWROLFEORRGSUHVVXUHPP+J6,56FULWHULDLVGHILQHGDV
KDYLQJRUPRUHRIWKHIROORZLQJV\PSWRPVDWEDVHOLQHWHPSHUDWXUHq&RU!q&
RUDORURUDOHTXLYDOHQWKHDUWUDWH!ESPUHVSLUDWRU\UDWH!EUHDWKVPLQ
:%&FHOOVPPRU:%&!FHOOVPPRUEDQGV!'LIIHUHQFHVEHWZHHQ
WUHDWPHQWJURXSVZLOOEHWHVWHGXVLQJ)LVKHU¶VH[DFWWHVWIRUFDWHJRULFDOYDULDEOHVDQGWKH
:LOFR[RQUDQNVXPWHVWIRUFRQWLQXRXVYDULDEOHV
%\VXEMHFWOLVWLQJVRIWKHPRGLILHG$76VHYHULW\FULWHULDDQG6,56FULWHULDZLOOEHSURYLGHG
$OLVWLQJRIVXEMHFWVZLWKGLVFUHSDQFLHVEHWZHHQWKH32575LVN&ODVVWRZKLFKWKH\ZHUH
UDQGRPL]HGDQGWKHLUWUXH32575LVNFODVVDVFDSWXUHGLQWKHFOLQLFDOGDWDEDVHZLOODOVREH
SURYLGHG
%DVHOLQHDVVHVVPHQWVRIFOLQLFDOV\PSWRPVFOLQLFDOVLJQVDEQRUPDOYLWDOVLJQVDQGDEQRUPDO
ODERUDWRU\VLJQVRI&$%3ZLOOEHSUHVHQWHGIRUWKH,776DIHW\PLFUR,77DQG&(37(
SRSXODWLRQV7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKHDFKRIWKH&$%3V\PSWRPV
FRXJKSOHXULWLFFKHVWSDLQG\VSQHDDQGSKOHJPVSXWXPSURGXFWLRQE\VHYHULW\DEVHQW
PLOGPRGHUDWHVHYHUHZLOOEHSUHVHQWHGE\WUHDWPHQWJURXS7KHQXPEHUDQGSHUFHQWDJHRI
VXEMHFWVZLWKWKHSUHVHQFHE\VHYHULW\LHDEVHQWPLOGPRGHUDWHVHYHUHRIWKHIROORZLQJ
FOLQLFDOVLJQVZLOOEHSURYLGHGE\WUHDWPHQWJURXSUDOHVUKRQFKLGXOOQHVVRQSHUFXVVLRQ
EURQFKLDOEUHDWKVRXQGVZKHH]LQJGHFUHDVHGEUHDWKVRXQGVDQGHJRSKRQ\7KHQXPEHU


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
DQGSHUFHQWDJHRIVXEMHFWVZLWKIHYHUGHILQHGDVERG\WHPSHUDWXUH!q&>q)@RUDORU
UHFWDOK\SRWKHUPLDGHILQHGDVERG\WHPSHUDWXUHq&>q)@RUDORUUHFWDO
K\SRWHQVLRQZLWKV\VWROLFEORRGSUHVVXUHPP+JKHDUWUDWH!ESPUHVSLUDWRU\
UDWH!EUHDWKVPLQK\SR[HPLDGHILQHGDV3D2PP+JE\DUWHULDOEORRGJDVRU
R[\JHQVDWXUDWLRQE\SXOVHR[LPHWU\HOHYDWHGWRWDO:%&FRXQW
!FHOOVPPOHXFRSHQLD:%&FHOOVPPHOHYDWHGLPPDWXUHQHXWURSKLOV
!EDQGIRUPVUHJDUGOHVVRIWRWDOSHULSKHUDO:%&FRXQWDQGDQ\RIHOHYDWHGWRWDO:%&
FRXQWOHXFRSHQLDRUHOHYDWHGLPPDWXUHQHXWURSKLOVZLOOEHVXPPDUL]HGE\WUHDWPHQWJURXS
'LIIHUHQFHVEHWZHHQWUHDWPHQWJURXSVZLOOEHWHVWHGIRUVWDWLVWLFDOVLJQLILFDQFHXVLQJ)LVKHU
V
H[DFWWHVW
5LVNIDFWRUVIRU&$%3ZLOOEHSUHVHQWHGE\WUHDWPHQWJURXSIRUWKH,776DIHW\PLFUR,77
DQG&(37(SRSXODWLRQV5LVNIDFWRUVLQFOXGHVPRNLQJFXUUHQWSDVWDQGGHVFULSWLYH
VWDWLVWLFVRIWKHQXPEHURI\HDUVVLQFHTXLWWLQJIRUWKRVHVXEMHFWVZKRZHUHSUHYLRXV
VPRNHUVUHFHLSWRISQHXPRFRFFDOYDFFLQHSULRUOXQJLQIHFWLRQZKHWKHUWKHVXEMHFWKDG
PLOGWRPRGHUDWH&23'V\PSWRPDWLFDVWKPDZLWKZKHH]LQJDQGFKURQLFFRXJKZLWKRU
ZLWKRXWVSXWXPSURGXFWLRQ'LIIHUHQFHVEHWZHHQWUHDWPHQWJURXSVZLOOEHWHVWHGIRU
VWDWLVWLFDOVLJQLILFDQFHXVLQJ)LVKHU
VH[DFWWHVWIRUFDWHJRULFDOYDULDEOHVDQGWKH:LOFR[RQ
UDQNVXPWHVWIRUFRQWLQXRXVYDULDEOHV2WKHUPHGLFDODQGVXUJLFDOKLVWRU\ZLOOEH
VXPPDUL]HGEDVHGRQ0HG'5$V\VWHPRUJDQFODVVE\WUHDWPHQWJURXSIRUWKH,77DQG
6DIHW\SRSXODWLRQV
5HDGLQJVRIEDVHOLQHFKHVWUDGLRJUDSKVLQFOXGLQJWKHW\SHRIDVVHVVPHQW&;5RU&7VFDQ
SUHVHQFHRISOHXUDOHIIXVLRQZKHWKHUWKHSOHXUDOHIIXVLRQLVXQLODWHUDORUELODWHUDOZKHWKHU
WKHSXOPRQDU\LQILOWUDWHZDVXQLRUPXOWLOREDUDQGWKHORFDWLRQRIWKHSXOPRQDU\LQILOWUDWH
FRPELQLQJOHIWXSSHUOREHDQGOLQJXODZLOOEHVXPPDUL]HGE\WUHDWPHQWJURXSIRUDOO
VXEMHFWVLQWKH,776DIHW\PLFUR,77DQG&(37(SRSXODWLRQV'LIIHUHQFHVEHWZHHQ
WUHDWPHQWJURXSVZLOOEHWHVWHGIRUVWDWLVWLFDOVLJQLILFDQFHXVLQJ)LVKHU
VH[DFWWHVW

0LFURELRORJ\
)LQGLQJVIURPWKHORFDOODERUDWRU\DVVHVVPHQWRIWKH*UDPVWDLQHGUHVSLUDWRU\VSHFLPHQV
6(&V>!@301V>@FRPELQDWLRQVRIWKHEDFWHULDIRXQG
>PRQRPLFURELDO*UDPQHJDWLYHRQO\SRO\PLFURELDO*UDPQHJDWLYHRQO\PRQRPLFURELDO
JUDPSRVLWLYHRQO\SRO\PLFURELDO*UDPSRVLWLYHRQO\DQ\*UDPQHJDWLYHDQG*UDP
SRVLWLYHDQGRWKHU@DQGZKHWKHURUQRWDFXOWXUHZDVSHUIRUPHGZLOOEHWDEXODWHGE\
WUHDWPHQWJURXSIRUDOOVXEMHFWVLQWKH,77PLFUR,77DQG0(37(SRSXODWLRQV
,IDVXEMHFWKDVPRUHWKDQRQHEDVHOLQHUHVSLUDWRU\VSHFLPHQWKHEHVWZLOOEHVXPPDUL]HG
7KHEHVWUHVSLUDWRU\VSHFLPHQVLQFOXGHGHHSUHVSLUDWRU\VDPSOHVHJEURQFKRDOYHRODUODYDJH
>%$/@EURQFKRVFRS\RUSOHXUDOIOXLGFXOWXUHV6SXWXPDGHTXDF\FULWHULDGRQRWDSSO\WR
WKHVHW\SHVRIVSHFLPHQV
,IQRGHHSUHVSLUDWRU\RUSOHXUDOIOXLGVSHFLPHQVDUHDYDLODEOHH[SHFWRUDWHGVSXWXPZLOOEH
DVVHVVHGXVLQJ*UDPVWDLQFULWHULD%HVWVSXWXPVDPSOHVDUHGHILQHGEDVHGRQWKH301VDQG
6(&VDVIROORZVUDQNHGEHVWWRZRUVW


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
!301VDQG6(&V
301VDQG6(&V
301VDQG6(&V
!301VDQG6(&V
301VDQG6(&V
301VDQG6(&V
!301VDQG!6(&V
301VDQG!6(&V
301VDQG!6(&V
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDTXDOLI\LQJ*UDPVWDLQLH301VDQG
6(&VZLOODOVREHSUHVHQWHG
7KHSDWKRJHQLFRUJDQLVPVLGHQWLILHGIURPWKHEDVHOLQHEORRGFXOWXUHFXOWXUHRIWKH
UHVSLUDWRU\VSHFLPHQ8$7DQGVHURORJ\ZLOOEHSUHVHQWHGE\JHQXVDQGVSHFLHVDQGE\
WHVWLQJPRGDOLW\LHFXOWXUH8$7VHURORJ\IRU6WUHSWRFRFFXVSQHXPRQLDHDQG/HJLRQHOOD
SQHXPRSKLODIRUWKHPLFUR,77H[SDQGHGPLFUR,770((27DQG0(37(SRSXODWLRQV
7KHVDPHSDWKRJHQLGHQWLILHGIURPPXOWLSOHWHVWLQJPRGDOLWLHVZLOOEHFRXQWHGRQO\RQFHLQ
WKHVXPPDU\DWWKHJHQXVDQGVSHFLHVOHYHO7KHSDWKRJHQLFRUJDQLVPVLGHQWLILHGIURPWKH
EDVHOLQHEORRGFXOWXUHFXOWXUHRIWKHUHVSLUDWRU\VSHFLPHQ8$7DQGVHURORJ\ZLOODOVREH
SUHVHQWHGE\JHRJUDSKLFUHJLRQLQWKHPLFUR,77SRSXODWLRQ7KHQXPEHUDQGSHUFHQWDJHRI
VXEMHFWVZLWK&$%3FDXVHGE\PRQRPLFURELDODQGSRO\PLFURELDO*UDPSRVLWLYHRU
*UDPQHJDWLYHSDWKRJHQVRQO\DW\SLFDOSDWKRJHQVLH/HJLRQHOODSQHXPRSKLOD0\FRSODVPD
SQHXPRQLDHRU&KODP\GRSKLODSQHXPRQLDHDPL[WXUHRIERWK*UDPSRVLWLYHDQG
*UDPQHJDWLYHSDWKRJHQVDPL[WXUHRI*UDPSRVLWLYHDQGDW\SLFDOSDWKRJHQRUDPL[WXUHRI
*UDPQHJDWLYHDQGDW\SLFDOSDWKRJHQVZLOOEHVXPPDUL]HGE\WUHDWPHQWJURXSRYHUDOO
PLFUR,77DQG0(37(SRSXODWLRQVDQGE\32575LVN&ODVVDQGJHRJUDSKLFUHJLRQIRUWKH
PLFUR,77DQG0(37(SRSXODWLRQV
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDSRVLWLYHEORRGFXOWXUHE\SDWKRJHQLFRUJDQLVP
ZLOOEHSURYLGHGIRUWKHPLFUR,77DQG0(SRSXODWLRQV7KHQXPEHUDQGSHUFHQWDJHRI
VXEMHFWVZLWKD*UDPSRVLWLYHRUJDQLVPDHUREHVDQGDQDHUREHVDQGZLWKD*UDPQHJDWLYH
RUJDQLVPDHUREHVDQGDQDHUREHVZLOOEHSUHVHQWHGE\JHQXVDQGVSHFLHV7KHSHUFHQWDJHRI
VXEMHFWVZLWKDSRVLWLYHEORRGFXOWXUHE\SDWKRJHQLFRUJDQLVPZLOOEHSURYLGHGIRUWKH
PLFUR,77SRSXODWLRQE\JHRJUDSKLFUHJLRQ
$OLVWLQJZLOOEHSURYLGHGWKDWLQFOXGHVDOOEDVHOLQHDQGSRVWEDVHOLQHLVRODWHVREWDLQHGIURP
WKHEORRGUHVSLUDWRU\VSHFLPHQ8$7DQGVHURORJ\DQGZLOOLQGLFDWHWKHW\SHRIVSHFLPHQ
WHVWLQJPRGDOLW\DQGSDWKRJHQLFRUJDQLVP
6HYHUDOWDEOHVSURYLGLQJWKHPLQLPXPLQKLELWRU\FRQFHQWUDWLRQ0,&GDWDIRUWKHSDWKRJHQV
LGHQWLILHGIURPWKHEDVHOLQHEORRGDQGUHVSLUDWRU\FXOWXUHVZLOOEHSURYLGHGIRUWKHPLFUR,77
DQG0(SRSXODWLRQV
 7KH0,&GLVWULEXWLRQWRRPDGDF\FOLQHDQGPR[LIOR[DFLQDFURVVWUHDWPHQWJURXSV
 7KH0,&GLVWULEXWLRQWRWKHWHVWDUWLFOHUHFHLYHGE\WUHDWPHQWJURXS


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 0,&VXPPDU\VWDWLVWLFVLHUDQJH0,&DQG0,&WRWKHWHVWDUWLFOHUHFHLYHG7KH
0,&UDQJHZLOOEHSURYLGHGIRUDOOEDVHOLQHSDWKRJHQV7KH0,&DQG0,&ZLOOEH
SURYLGHGRQO\IRUWKRVHSDWKRJHQVLVRODWHGDWOHDVWWLPHVLQDWUHDWPHQWJURXS0,&
VXPPDU\VWDWLVWLFVZLOODOVREHSURYLGHGE\JHRJUDSKLFUHJLRQ

7KHGLVWULEXWLRQRIGLVNGLIIXVLRQ]RQHGLDPHWHUVPPZLOOEHSURYLGHGIRUWKHWHVWDUWLFOH
UHFHLYHGE\WUHDWPHQWJURXS

7UHDWPHQW&RPSOLDQFHDQG([SRVXUH
([SRVXUHVXPPDU\E\WUHDWPHQWJURXSZLOOEHSUHVHQWHGIRUWKH6DIHW\PLFUR,77DQG
&(37(SRSXODWLRQV7KHGLVWULEXWLRQRIVXEMHFWVE\WKHWRWDOQXPEHURIGD\VRQWKHUDS\
DQG!GD\VWKHQXPEHURIGD\VRQLYLQIXVLRQ
DQG!GD\VDQGWKHQXPEHURIGD\VRIRUDOWHVWDUWLFOHDQG
!GD\VZLOOEHSUHVHQWHG$VXPPDU\RIWKHQXPEHURIGD\VRILYWKHUDS\SULRUWRRUDO
VZLWFKGHILQHGDVKRXUSHULRGVLHWLPHWRRUDOVZLWFKWKHGD\RIRUDOVZLWFKDQGWKH
FULWHULDIRULYWRRUDOVZLWFKZLOOEHSUHVHQWHGE\WUHDWPHQWJURXS)RUWKH6DIHW\SRSXODWLRQ
WKHVXPPDU\RIWHVWDUWLFOHH[SRVXUHZLOOEHEDVHGRQWKHDFWXDOWUHDWPHQWUHFHLYHGZKHUHDV
IRUDOORWKHUDQDO\VLVVHWVWKHVXPPDU\ZLOOEHEDVHGRQWKHUDQGRPL]HGWUHDWPHQW
7UHDWPHQWFRPSOLDQFHLVGHILQHGDVWKHQXPEHURILYGRVHVLQFOXGLQJSDUWLDOGRVHVDFWLYH
DQGSODFHERDQGRUDOGRVHVDFWXDOO\UHFHLYHGGLYLGHGE\WKHQXPEHURIGRVHVH[SHFWHG
îRYHUWKHWLPHSHULRGGHILQHGE\WKHILUVWLQIXVLRQGDWHDQGWKHODVWGRVHGDWH
'HVFULSWLYHVWDWLVWLFVIRUWUHDWPHQWFRPSOLDQFHDQGWKHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVDW
OHDVWFRPSOLDQWZLOOEHSUHVHQWHGE\WUHDWPHQWJURXSIRUWKH,776DIHW\DQG&(37(
SRSXODWLRQV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 ()),&$&<3$5$0(7(56
)RUDOOHIILFDF\DQDO\VHVVXEMHFWVZLOOEHDQDO\]HGLQWKHJURXSWRZKLFKWKH\ZHUH
UDQGRPL]HG%\GHILQLWLRQVXEMHFWVZKRUHFHLYHWKHZURQJWHVWDUWLFOHDUHQRWLQFOXGHGLQWKH
&((27&(37(0((27DQG0(37(SRSXODWLRQV6XEMHFWVZKRDUHUDQGRPL]HGWRWKH
ZURQJ32575LVN&ODVVSULRUDQWLELRWLFRUJHRJUDSKLFUHJLRQVWUDWXPZLOOEHDQDO\]HGLQ
WKHVWUDWXPWRZKLFKWKH\ZHUHUDQGRPL]HGXQOHVVRWKHUZLVHVWDWHG$VXPPDU\RIWKH
HIILFDF\DQDO\VHVLVSURYLGHGLQ$SSHQGL[
 3ULPDU\$QDO\VLV
7KHSULPDU\HIILFDF\DQDO\VHVZLOOEHEDVHGRQWKH,77SRSXODWLRQ7KHQRQLQIHULRULW\WHVW
ZLOOEHDVLGHGK\SRWKHVLVWHVWSHUIRUPHGDWWKHOHYHORIVLJQLILFDQFH7KLV
QRQLQIHULRULW\WHVWZLOOEHEDVHGRQWKHORZHUOLPLWRIWKHVLGHGFRQILGHQFHLQWHUYDO
&,7KHSULPDU\HIILFDF\RXWFRPHLVWKHSHUFHQWDJHRIVXEMHFWVZLWKDQ(DUO\&OLQLFDO
6XFFHVVDWWKH(DUO\&OLQLFDO5HVSRQVH$VVHVVPHQWWRKRXUVDIWHUWKHILUVWLQIXVLRQRI
WHVWDUWLFOH
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFKWUHDWPHQWJURXSGHILQHGDVDQ(DUO\&OLQLFDO
6XFFHVV&OLQLFDO)DLOXUHDQG,QGHWHUPLQDWHVXEMHFWVZLWKPLVVLQJGDWDRUZKRDUHORVWWR
IROORZXSZLOOEHWDEXODWHGDVZLOOWKHRYHUDOOFDWHJRU\FRPELQLQJ&OLQLFDO)DLOXUHDQG
,QGHWHUPLQDWH7KHQXOODQGDOWHUQDWLYHK\SRWKHVHVDUHDVIROORZV
'

d



 
S
S
+
DQG
'

!



 
S
S
+


ZKHUHSLVWKHSULPDU\HIILFDF\VXFFHVVUDWHLQWKHRPDGDF\FOLQHWUHDWPHQWJURXSSLVWKH
SULPDU\HIILFDF\VXFFHVVUDWHLQWKHPR[LIOR[DFLQWUHDWPHQWJURXSDQGǻLVWKH
QRQLQIHULRULW\PDUJLQRI
7RWHVWWKHQXOOK\SRWKHVLVDVLGHG&,IRUWKHREVHUYHGGLIIHUHQFHLQSULPDU\RXWFRPH
UDWHVRPDGDF\FOLQHWUHDWPHQWJURXSPLQXVPR[LIOR[DFLQWUHDWPHQWJURXSZLOOEHFDOFXODWHG
IRUWKH,77SRSXODWLRQ,IWKHORZHUOLPLWRIWKH&,IRUWKHGLIIHUHQFHLQWKH,77
SRSXODWLRQH[FHHGV±WKHQWKHQXOOK\SRWKHVLVZLOOEHUHMHFWHGDQGWKHQRQLQIHULRULW\RI
RPDGDF\FOLQHWRPR[LIOR[DFLQZLOOEHGHFODUHG
7KHVLGHG&,IRUQRQLQIHULRULW\WHVWLQJEDVHGRQWKHGLIIHUHQFHRI(DUO\&OLQLFDO
6XFFHVVUDWHVDWWKH(DUO\&OLQLFDO5HVSRQVH$VVHVVPHQWWRKRXUVDIWHUWKHILUVW
LQIXVLRQRIWHVWDUWLFOHZLOOEHFRPSXWHGXVLQJWKHPHWKRGSURSRVHGZLWKRXWVWUDWLILFDWLRQE\
0LHWWLQHQDQG1XUPLQHQ)RUQRWDWLRQSXUSRVHVDVVXPHUHSUHVHQWVWKH
RPDGDF\FOLQHJURXS*URXSDQGUHSUHVHQWVWKHPR[LIOR[DFLQJURXS*URXS


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
%DVHGRQ0LHWWLQHQDQG1XUPLQHQWKHVLGHG&,LVJLYHQE\WKHURRWVIRU


S
S
5'

 
RIWKHIROORZLQJHTXDWLRQ
9
5'
S
S





Ö
Ö



 
D
F


ZKHUH

D
F LVWKHFXWSRLQWRIVL]HD IURPWKHFKLVTXDUHGLVWULEXWLRQ

D
F  IRUVLGHG
&, 5' LVWKHGLIIHUHQFHEHWZHHQWKHWUXHUDWHV


S
S
5'

 

ÖS  WKHREVHUYHG
DYHUDJHSURSRUWLRQLQ*URXS
ÖS  WKHREVHUYHGDYHUDJHSURSRUWLRQLQ*URXSDQG


a

a

a

a













»¼
º
«¬
ª



 
Q
Q
Q
Q
Q
S
S
Q
S
S
9


ZKHUH
Q  QXPEHURIVXEMHFWVLQ*URXS
Q  QXPEHURIVXEMHFWVLQ*URXS
5'
S
S

 


a
a
DQG

aS LVWKHPD[LPXPOLNHOLKRRGHVWLPDWHIRU

S DVDIXQFWLRQRI 5' DQG
XQGHUWKHFRQVWUDLQW
5'
S
S

 



$VVWDWHGDERYHWKHVLGHG&,IRUWKHGLIIHUHQFHLQUDWHVLVJLYHQE\WKHURRWVIRU


S
S
5'

 
IURPWKHHTXDWLRQDERYHEXWWKLVHTXDWLRQGRHVQRWDOORZIRUH[SOLFLWVROXWLRQ
IRU 5' 7KHUHIRUHDQXPHULFDODOJRULWKPZLOOEHXVHGWRREWDLQWKHURRWV&,IRU 5' 
7KLV&,DSSURDFKFRUUHVSRQGVWRWKHQRQLQIHULRULW\WHVWDSYDOXHDSSURDFKSURSRVHGE\
)DUULQJWRQDQG0DQQLQJ
7KHUHDVRQVIRU&OLQLFDO)DLOXUHDQGUHDVRQVIRU,QGHWHUPLQDWHUHVSRQVHZLOOEHVXPPDUL]HG
E\WUHDWPHQWJURXS
 6HQVLWLYLW\DQG$GGLWLRQDO$QDO\VHVRIWKH3ULPDU\(IILFDF\2XWFRPH
,IWKHQXOOK\SRWKHVLVRILQIHULRULW\LVUHMHFWHGIRU(DUO\&OLQLFDO5HVSRQVHLQWKH,77
SRSXODWLRQDQGWKHREVHUYHGVXFFHVVUHVSRQVHSURSRUWLRQIRURPDGDF\FOLQHLVODUJHUWKDQWKH
REVHUYHGSURSRUWLRQIRUPR[LIOR[DFLQDIRUPDOVWDWLVWLFDODQDO\VLVRIVXSHULRULW\ZLOOEH
FRQGXFWHG,IWKHORZHUOLPLWRIWKHVLGHG&,IRUWKHWUHDWPHQWGLIIHUHQFHLVJUHDWHU
WKDQRPDGDF\FOLQHZLOOEHFRQVLGHUHGVXSHULRUWRPR[LIOR[DFLQ
6HQVLWLYLW\DQDO\VHVRIWKHSULPDU\RXWFRPHLQFOXGH
 'HWHUPLQDWLRQRIWKH&,DGMXVWHGIRU32575LVN&ODVV,,YV,,,,9SULRUXVHRI
DQWLELRWLFV\HVDQGQRDQGJHRJUDSKLFUHJLRQ:HVWHUQ(XURSH1RUWK$PHULFD(DVWHUQ
(XURSHDQG5HVWRI:RUOG,IWKHUHDUHVXEMHFWVZLWKLQDVWUDWXPDQGWUHDWPHQW
JURXSRUWKHUHLVDFRXQWZLWKLQDVWUDWXPIRUDWUHDWPHQWJURXSDQGRXWFRPHWKH
JHRJUDSKLFUHJLRQVRI(DVWHUQ(XURSHDQG5HVWRI:RUOGZLOOEHFRPELQHG,IWKH
FRPELQLQJRIWKHJHRJUDSKLFUHJLRQVLVQRWVXIILFLHQWWRFRPSOHWHWKHDGMXVWHGDQDO\VLV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
UHFHLSWRISULRUDQWLELRWLFV\HVYVQRZLOOEHFRPELQHG7KH&,LQWHUYDOZLOOEH
FRPSXWHGXVLQJWKHVWUDWLILHGPHWKRGRORJ\RI0LHWWLQHQDQG1XUPLQHQ
&RFKUDQ0DQWHO+DHQV]HOZHLJKWVZLOOEHXVHGIRUWKHVWUDWXPZHLJKWVLQWKHFDOFXODWLRQ
RIWKH&,DVIROORZVZKHUH
L
Q  QXPEHURIVXEMHFWVLQ*URXSLQWKHLWKVWUDWXP
L
Q  
QXPEHURIVXEMHFWVLQ*URXSLQWKHLWKVWUDWXP
L
L
L
L
L
Q
Q
Q
Q
:





 

 7KHVHFRQGVHQVLWLYLW\DQDO\VLVRIWKHSULPDU\RXWFRPHZLOOFRQVLGHUDOOVXEMHFWVZKRDUH
ORVWWRIROORZXSSULRUWRKDYLQJDQ(DUO\&OLQLFDO$VVHVVPHQWRUKDYHPLVVLQJGDWDDVDQ
(DUO\&OLQLFDO6XFFHVVWKHVHVXEMHFWVDUHFRQVLGHUHG,QGHWHUPLQDWHVDQGDQDO\]HGDV
&OLQLFDO)DLOXUHVLQWKHSULPDU\DQDO\VLV

 6HFRQGDU\$QDO\VLV
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFKWUHDWPHQWJURXSZLWKD&OLQLFDO6XFFHVV
&OLQLFDO)DLOXUHDQG,QGHWHUPLQDWHIRUWKHRYHUDOODVVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH
37(9LVLWEDVHGRQWKHLQYHVWLJDWRU¶VDVVHVVPHQWZLOOEHUHSRUWHGIRUWKH,77&(37(DQG
0(37(SRSXODWLRQVE\GHILQLWLRQ&(37(VXEMHFWVFDQQRWKDYHDUHVSRQVHRI
,QGHWHUPLQDWH7ZRVLGHG&,VZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHVLQWKH
&OLQLFDO6XFFHVVUDWHXVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQZLWKRXW
VWUDWLILFDWLRQ7KH&,VDUHIRUGHVFULSWLYHSXUSRVHVRQO\DQGQRFRQFOXVLRQRI1,ZLOOEH
PDGH7KHUHDVRQVIRU&OLQLFDO)DLOXUHDQG,QGHWHUPLQDWHZLOOEHVXPPDUL]HGE\WUHDWPHQW
JURXS
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFKWUHDWPHQWJURXSLQHDFKUHVSRQVHFDWHJRU\IRU
(DUO\&OLQLFDO5HVSRQVHZLOOEHSUHVHQWHGIRUWKHPLFUR,77DQGH[SDQGHGPLFUR,77
SRSXODWLRQV7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZKRDUHFODVVLILHGDVD&OLQLFDO6XFFHVV
DQG&OLQLFDO)DLOXUHEDVHGRQWKHRYHUDOODVVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(9LVLW
EDVHGRQWKHLQYHVWLJDWRU
VDVVHVVPHQWLQWKH0(37(SRSXODWLRQZLOOEHFDOFXODWHG
7ZRVLGHG&,VZLWKRXWVWUDWLILFDWLRQZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQ
WKH&OLQLFDO6XFFHVVUDWHVLQWKHPLFUR,77H[SDQGHGPLFUR,77DQG0(37(SRSXODWLRQV
XVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQ
(DUO\&OLQLFDO5HVSRQVHDQGWKHRYHUDOODVVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(9LVLWE\
EDVHOLQHSDWKRJHQZLOOEHGHWHUPLQHGDVWKHSURSRUWLRQRIVXEMHFWVZLWKD&OLQLFDO6XFFHVV
IRUHDFKSDWKRJHQLVRODWHGDWEDVHOLQH7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFK
WUHDWPHQWJURXSZLWKD&OLQLFDO6XFFHVVEDVHGRQ(DUO\&OLQLFDO5HVSRQVHDQGLQYHVWLJDWRU
V
DVVHVVPHQWRIUHVSRQVHZLOOEHWDEXODWHGSHUSDWKRJHQIRUWKHPLFUR,770(37(IRU
,QYHVWLJDWRUVDVVHVVPHQWRQO\DQGWKHH[SDQGHGPLFUR,77SRSXODWLRQV
$OOFDXVHPRUWDOLW\$&0DWDQGGD\VDIWHUWKHILUVWGRVHRIWHVWDUWLFOHZLOOEH
VXPPDUL]HGLQWKH,77SRSXODWLRQ6XEMHFWVZKRDUHORVWWRIROORZXSZLOOEHFRQVLGHUHG
GHFHDVHGIRUWKLVDQDO\VLVLHLQFOXGHGLQWKHQXPHUDWRUDQGGHQRPLQDWRURIWKHFDOFXODWLRQ
EXWZLOOEHSUHVHQWHGVHSDUDWHO\RQWKHVXPPDU\WDEOH$QDGGLWLRQDODQDO\VLVLQWKH,77


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
SRSXODWLRQRI$&0ZLOOEHFRPSOHWHGWKDWLQFOXGHVRQO\WKRVHVXEMHFWVZKRVHVWDWXVLV
NQRZQDWDQGGD\VDIWHUWKHILUVWGRVHRIVWXG\GUXJ
 $GGLWLRQDO$QDO\VHV
$GGLWLRQDOHIILFDF\DQDO\VHVZLOOEHFRQGXFWHGWRVXSSRUWWKHHIILFDF\ILQGLQJVRIWKHSULPDU\
DQGVHFRQGDU\RXWFRPHV&,VZLOOEHGHWHUPLQHGIRUGHVFULSWLYHSXUSRVHVEXWQR
FRQFOXVLRQVRI1,ZLOOEHPDGH
&OLQLFDO2XWFRPHV
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVFODVVLILHGDVD&OLQLFDO6XFFHVV&OLQLFDO)DLOXUHDQG
,QGHWHUPLQDWHE\WKH,QYHVWLJDWRU¶V$VVHVVPHQWDW(27LQWKH,77DQG&((27SRSXODWLRQV
E\GHILQLWLRQVXEMHFWVZLWKDQ,QGHWHUPLQDWHUHVSRQVHDUHH[FOXGHGIURPWKH&((27
SRSXODWLRQZLOOEHFDOFXODWHG7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVLQHDFKUHVSRQVH
FDWHJRU\IRUWKHRYHUDOODVVHVVPHQWRI&OLQLFDOUHVSRQVHDW37(EDVHGRQWKHLQYHVWLJDWRU
V
DVVHVVPHQWLQWKHPLFUR,77SRSXODWLRQZLOODOVREHSURYLGHG7ZRVLGHGXQDGMXVWHG
&,VZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQWKH&OLQLFDO6XFFHVVUDWHXVLQJWKH
PHWKRGRI0LHWWLQHQDQG1XUPLQHQ
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKVWDELOL]DWLRQRIDOOYLWDOVLJQVDVVRFLDWHGZLWK
&$%3DWWRKRXUVSRVWILUVWGRVHRIWHVWDUWLFOHZLOOEHSUHVHQWHGE\WUHDWPHQWJURXSLQ
WKH,77SRSXODWLRQDVZLOOWKHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKVWDELOL]DWLRQRIHDFK
YLWDOVLJQ7KHVHLQFOXGHWHPSHUDWXUHQRIHYHURUK\SRWKHUPLD6%3!PP+JKHDUW
UDWHESP55EUHDWKVPLQXWHVDQG3D2!PP+JE\SXOVHR[LPHWU\RU
$%*:%&FRXQWFHOOVPPRUFHOOVPPDQGLPPDWXUHQHXWURSKLOV

$VXPPDU\QXPEHUDQGSHUFHQWDJHRIVXEMHFWVRIWKHDVVHVVPHQWRIFOLQLFDOV\PSWRPVRI
&$%3DWHDFKWLPHSRLQWWKURXJKRXWWKHVWXG\ZLOOEHSUHVHQWHGE\WUHDWPHQWJURXSLQWKH
,77SRSXODWLRQ&OLQLFDOV\PSWRPVRI&$%3FRXJKSOHXULWLFFKHVWSDLQG\VSQHDDQG
SKOHJPVSXWXPSURGXFWLRQZLOOEHVXPPDUL]HGDVVKLIWWDEOHVRIVFRUHDEVHQWPLOG
PRGHUDWHDQGVHYHUHDVFRPSDUHGZLWKEDVHOLQH3HUFHQWDJHVIRUFOLQLFDOV\PSWRPVZLOOEH
EDVHGRQWKHQXPEHURIVXEMHFWVZLWKDEDVHOLQHDQGSRVWEDVHOLQHHYDOXDWLRQDWWKHWLPH
SRLQWRIWKHVSHFLILFFOLQLFDOV\PSWRP7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWK
UHVROXWLRQRIDOOV\PSWRPVSUHVHQWDWEDVHOLQHEDFNWRSUH&$%3VWDWXVZLOODOVREH
SURYLGHGE\VWXG\YLVLWLQWKH,77SRSXODWLRQ7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWK
QRZRUVHQLQJRIFOLQLFDOV\PSWRPVRI&$%3DQGZLWKWKHDEVHQFHRIQHZV\PSWRPVRI
&$%3ZLOODOVREHSURYLGHGE\WUHDWPHQWJURXSDQGVWXG\YLVLWLQWKH,77SRSXODWLRQ
$FRQFRUGDQFHDQDO\VLVRIWKHSULPDU\HIILFDF\RXWFRPH(DUO\&OLQLFDO5HVSRQVHDWWR
KRXUVZLWKWKHRYHUDOODVVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(9LVLWEDVHGRQWKH
LQYHVWLJDWRU
VDVVHVVPHQWZLOOEHFRQGXFWHGLQWKH,77SRSXODWLRQ$FRQFRUGDQFHDQDO\VLV
RIRYHUDOODVVHVVPHQWRI&OLQLFDO5HVSRQVHEDVHGRQWKHLQYHVWLJDWRU
VDVVHVVPHQWDQG
PLFURELRORJLFDOUHVSRQVHDWWKH37(9LVLWZLOOEHFRQGXFWHGLQWKHPLFUR,77SRSXODWLRQ


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDQ(DUO\&OLQLFDO6XFFHVVPLFUR,77SRSXODWLRQ
ZLWKDQDVVHVVPHQWRI&OLQLFDO6XFFHVVEDVHGRQWKHLQYHVWLJDWRU
VDVVHVVPHQWDWWKH(27
9LVLWPLFUR,77DQG0((27SRSXODWLRQVDQGZLWKDQRYHUDOODVVHVVPHQWRI&OLQLFDO
6XFFHVVDWWKH37(9LVLWEDVHGRQLQYHVWLJDWRU
VDVVHVVPHQWIRUWKHPLFUR,77DQG0(37(
SRSXODWLRQVZLOOEHWDEXODWHGE\EDVHOLQH0,&WRRPDGDF\FOLQHDQGPR[LIOR[DFLQE\
SDWKRJHQIRUWKRVHSDWKRJHQVRFFXUULQJDWOHDVWWLPHVLQRQHRIWKHWUHDWPHQWJURXSVDQG
WUHDWPHQWJURXS
0LFURELRORJLFDO2XWFRPHV
7KHSHUVXEMHFWPLFURELRORJLFDOUHVSRQVHDWWKH(27DQG37(9LVLWVLQWKHPLFUR,77
0((27(279LVLWRQO\DQG0(37(37(9LVLWRQO\SRSXODWLRQVZLOOEHGHWHUPLQHGWR
VXSSRUWWKHFOLQLFDOILQGLQJV7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVFODVVLILHGZLWKD
IDYRUDEOHHUDGLFDWLRQDQGSUHVXPHGHUDGLFDWLRQDQGXQIDYRUDEOHSHUVLVWHQFHSUHVXPHG
SHUVLVWHQFHDQGLQGHWHUPLQDWHPLFURELRORJLFDOUHVSRQVHE\GHILQLWLRQLQGHWHUPLQDWHVDUH
H[FOXGHGIURPWKH0(SRSXODWLRQVZLOOEHWDEXODWHGIRUERWKWUHDWPHQWJURXSV$VLGHG
&,ZLWKRXWVWUDWLILFDWLRQZLOOEHFRQVWUXFWHGIRUWKHREVHUYHGGLIIHUHQFHLQWKH
SHUVXEMHFWIDYRUDEOHPLFURELRORJLFDOUHVSRQVHUDWHEHWZHHQWKHRPDGDF\FOLQHDQG
PR[LIOR[DFLQJURXSVXVLQJWKHPHWKRGRI0LHWWLQHQDQG1XUPLQHQ
3HUVXEMHFWPLFURELRORJLFDOUHVSRQVHDWWKH37(9LVLWLQWKHPLFUR,77DQG0(37(
SRSXODWLRQVZLOODOVREHSURYLGHGIRULQIHFWLRQVFDXVHGE\PRQRPLFURELDODQGSRO\PLFURELDO
*UDPSRVLWLYHRU*UDPQHJDWLYHSDWKRJHQVRQO\DW\SLFDOSDWKRJHQVDPL[WXUHRIERWK
*UDPSRVLWLYHDQG*UDPQHJDWLYHSDWKRJHQVDPL[WXUHRI*UDPSRVLWLYHDQGDW\SLFDO
SDWKRJHQVRUDPL[WXUHRI*UDPQHJDWLYHDQGDW\SLFDOSDWKRJHQV
0LFURELRORJLFUHVSRQVHE\EDVHOLQHSDWKRJHQZLOOEHGHWHUPLQHGDVWKHSURSRUWLRQRIVXEMHFWV
ZLWKDIDYRUDEOHPLFURELRORJLFDOUHVSRQVHHUDGLFDWLRQRUSUHVXPHGHUDGLFDWLRQDWWKH(27
DQG37(9LVLWVIRUHDFKSDWKRJHQLVRODWHGDWEDVHOLQH7KHQXPEHUDQGSHUFHQWDJHRI
VXEMHFWVLQHDFKWUHDWPHQWJURXSZLWKDPLFURELRORJLFDOO\IDYRUDEOHRXWFRPHZLOOEH
WDEXODWHGIRUWKHPLFUR,770((27(279LVLWDQG0(37(37(9LVLWSRSXODWLRQV
)DYRUDEOHPLFURELRORJLFUHVSRQVHE\EDVHOLQHSDWKRJHQZLOODOVREHVXPPDUL]HGVHSDUDWHO\
IRUSDWKRJHQVREWDLQHGIURPWKHEORRGFXOWXUHLHIRUEDFWHUHPLFVXEMHFWVIRUWKHPLFUR,77
SRSXODWLRQ
0LFURELRORJLFDOFDWHJRULHVIRUSDWKRJHQVLGHQWLILHGDIWHUEDVHOLQHDVVHVVPHQWDUH
VXSHULQIHFWLRQDQGQHZLQIHFWLRQ7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKD
VXSHULQIHFWLRQRUQHZLQIHFWLRQZLOOEHSUHVHQWHGE\WUHDWPHQWJURXS$OLVWLQJZLOOEH
SURYLGHGWKDWSUHVHQWVWKHVXEMHFWVZLWKDVXSHULQIHFWLRQDQGQHZLQIHFWLRQLQFOXGLQJWKHW\SH
RIVSHFLPHQDQGSDWKRJHQ
'HFUHDVLQJVXVFHSWLELOLW\RIDSDWKRJHQLVGHILQHGDVDIROGLQFUHDVHIURPEDVHOLQHWRDQ\
VXEVHTXHQWVWXG\WLPHSRLQWLQWKH0,&RIWKHWHVWDUWLFOHUHFHLYHG7KHQXPEHUDQG
SHUFHQWDJHRIVXEMHFWVLQWKHPLFUR,77SRSXODWLRQZLWKDSDWKRJHQVKRZLQJGHFUHDVLQJ
VXVFHSWLELOLW\ZLOOEHWDEXODWHGIRUHDFKWUHDWPHQWJURXS,QDGGLWLRQDWDEOHZLOOOLVWDOO
VXEMHFWVLQHDFKWUHDWPHQWJURXSZLWKDSDWKRJHQVKRZLQJGHFUHDVLQJVXVFHSWLELOLW\


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
LQFOXGLQJWKHW\SHRIVSHFLPHQSDWKRJHQDQG0,&YDOXHV$GGLWLRQDOH[SORUDWRU\
PLFURELRORJLFDODQDO\VHVPD\EHFRQGXFWHG
 ,QWHULP$QDO\VLV
1RLQWHULPDQDO\VLVRIHIILFDF\LVSODQQHG
 6XEJURXS$QDO\VHV
7KHSULPDU\DQDO\VLV(&5UHVXOWVZLOOEHDVVHVVHGVHSDUDWHO\DFURVV32575LVN&ODVVXVH
RISULRUDQWLELRWLFVDQGJHRJUDSKLFUHJLRQVWUDWXPE\WUHDWPHQWJURXSIRUERWKWKHDV
UDQGRPL]HGVWUDWDDQGWKHDFWXDOVWUDWDDVLQGLFDWHGRQWKHH&5))RUHDFK32575LVN&ODVV
VWUDWXPSULRUDQWLELRWLFVWUDWXPDQGHDFKJHRJUDSKLFDOUHJLRQVWUDWXPDVLGHG&,IRU
WKHREVHUYHGGLIIHUHQFHLQWKH(DUO\&OLQLFDO6XFFHVVUDWHVZLOOEHFDOFXODWHGIRUWKH,77
SRSXODWLRQ,IDFOLQLFDOO\PHDQLQJIXOWUHDWPHQWJURXSE\32575LVN&ODVVWUHDWPHQW
JURXSE\SULRUDQWLELRWLFXVHRUWUHDWPHQWJURXSE\JHRJUDSKLFDOUHJLRQUHVXOWLQWKH
RSSRVLWHGLUHFWLRQRIWKHRYHUDOOUHVXOWLVQRWHGDQLQIHUHQWLDOWHVWPD\EHSHUIRUPHGDVD
GHVFULSWLYHVWDWLVWLF
5HVXOWVRIWKHRYHUDOODVVHVVPHQWRI&OLQLFDO5HVSRQVHDWWKH37(9LVLWEDVHGRQWKH
LQYHVWLJDWRU¶VDVVHVVPHQWDWWKH(27DQG37(9LVLWVZLOODOVREHDVVHVVHGDFURVV3257
5LVN&ODVVXVHRISULRUDQWLELRWLFVDQGJHRJUDSKLFUHJLRQVWUDWDE\WUHDWPHQWJURXSIRUERWK
WKHDVUDQGRPL]HGVWUDWDDQGWKHDFWXDOVWUDWDDVLQGLFDWHGRQWKHH&5)6HSDUDWHO\IRUHDFK
32575LVN&ODVVVWUDWXPXVHRISULRUDQWLELRWLFVVWUDWXPDQGIRUHDFKJHRJUDSKLFDOUHJLRQ
VWUDWXPVLGHG&,VIRUWKHREVHUYHGGLIIHUHQFHLQFOLQLFDOUHVSRQVHLQWKH,77DQG
&(37(SRSXODWLRQVZLOOEHFDOFXODWHG,IDFOLQLFDOO\PHDQLQJIXOWUHDWPHQWJURXSE\3257
5LVN&ODVVWUHDWPHQWJURXSE\SULRUDQWLELRWLFXVHRUWUHDWPHQWJURXSE\JHRJUDSKLFDO
UHJLRQUHVXOWLQWKHRSSRVLWHGLUHFWLRQRIWKHRYHUDOOUHVXOWLVQRWHGDQLQIHUHQWLDOWHVWPD\EH
SHUIRUPHGDVDGHVFULSWLYHVWDWLVWLF


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 6$)(7<$1'72/(5$%,/,7<
$OOVDIHW\DQDO\VHVZLOOEHFRQGXFWHGLQWKH6DIHW\SRSXODWLRQ6XEMHFWVZKRUHFHLYHWKH
ZURQJWHVWDUWLFOHIRUWKHLUHQWLUHFRXUVHRIWUHDWPHQWZLOOEHDQDO\]HGLQWKHJURXSEDVHGRQ
WKHGUXJUHFHLYHG,IDVXEMHFWUHFHLYHVERWKRPDGDF\FOLQHDQGPR[LIOR[DFLQWKHVXEMHFWZLOO
EHDQDO\]HGLQWKHRPDGDF\FOLQHDUPUHJDUGOHVVRIWKHDPRXQWRIRPDGDF\FOLQHUHFHLYHGRU
WKHUDQGRPL]HGWUHDWPHQWDVVLJQPHQW6DIHW\SDUDPHWHUVLQFOXGHDGYHUVHHYHQWV$(VYLWDO
VLJQVHOHFWURFDUGLRJUDP(&*SDUDPHWHUVDQGFOLQLFDOODERUDWRU\SDUDPHWHUV
 $GYHUVH(YHQWV
9HUEDWLPGHVFULSWLRQVRI$(VZLOOEHFRGHGXVLQJ9HUVLRQRUKLJKHURI0HG'5$
6XPPDU\WDEOHVZLOOEHSURYLGHGIRUDOOWUHDWPHQWHPHUJHQWDGYHUVHHYHQWV7($(VEXWDOO
$(VZLOOEHSURYLGHGLQDOLVWLQJ$WUHDWPHQWHPHUJHQW$(LVGHILQHGDVDQ\$(WKDWQHZO\
DSSHDUHGLQFUHDVHGLQIUHTXHQF\RUZRUVHQHGLQVHYHULW\RQRUDIWHUWKHLQLWLDWLRQRIDFWLYH
WHVWDUWLFOH$Q$(LVFRQVLGHUHGWUHDWPHQWHPHUJHQWLIWKH$(VWDUWGDWHDQGWLPHLVRQRU
DIWHUWKHVWDUWGDWHDQGWLPHRIWKHILUVWLQIXVLRQRIDFWLYHWHVWDUWLFOH,IWLPHRIWKH$(LV
PLVVLQJDQGLWRFFXUUHGRQWKHVDPHGDWHDVWKHILUVWLQIXVLRQRIDFWLYHWHVWDUWLFOHWKH$(ZLOO
EHGHILQHGDVWUHDWPHQWHPHUJHQW,IWKHVWDUWGDWHRIWKH$(LVSDUWLDORUPLVVLQJDQGLW
FDQQRWEHGHWHUPLQHGLIWKH$(RFFXUUHGSULRUWRRUDIWHUWKHILUVWGRVHRIWHVWDUWLFOHWKH$(
VKRXOGEHGHILQHGDVWUHDWPHQWHPHUJHQW
6XEMHFWVDVVLJQHGWRWKHPR[LIOR[DFLQDUPUHFHLYHSODFHERDVWKHLUILUVWLQIXVLRQRIWHVW
DUWLFOH7KH$(VRIVXEMHFWVZKRH[SHULHQFHDQ$(GXULQJWKLVSODFHERLQIXVLRQDQG
SUHPDWXUHO\GLVFRQWLQXHIURPWHVWDUWLFOHSULRUWRUHFHLYLQJPR[LIOR[DFLQZLOORQO\EH
SUHVHQWHGLQDOLVWLQJ
$QRYHUDOOVXPPDU\RI$(VZLOOLQFOXGHWKHQXPEHURIVXEMHFWVZKRH[SHULHQFHGDWOHDVWRQH
$(RIWKHIROORZLQJFDWHJRULHVDQ\$(DQ\7($(DQ\GUXJUHODWHG7($(DQ\VHYHUH
7($(DQ\VHULRXV7($(DQ\GUXJUHODWHG6$(DQ\VHULRXV7($(OHDGLQJWRGHDWKDQ\
7($(OHDGLQJWRSUHPDWXUHGLVFRQWLQXDWLRQRIWHVWDUWLFOHDQ\7($(OHDGLQJWRSUHPDWXUH
GLVFRQWLQXDWLRQIURPWKHVWXG\DQ\7($(OHDGLQJWRGRVHLQWHUUXSWLRQRIWHVWDUWLFOHDQGDQ\
VHULRXV7($(OHDGLQJWRSUHPDWXUHGLVFRQWLQXDWLRQRIWHVWDUWLFOH
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVUHSRUWLQJD7($(LQHDFKWUHDWPHQWJURXSZLOOEH
WDEXODWHGE\V\VWHPRUJDQFODVVDQGSUHIHUUHGWHUPE\V\VWHPRUJDQFODVVSUHIHUUHGWHUP
DQGVHYHULW\PLOGPRGHUDWHDQGVHYHUHDQGE\V\VWHPRUJDQFODVVSUHIHUUHGWHUPDQG
UHODWLRQVKLSXQUHODWHGRUUHODWHGWRWHVWDUWLFOH7KHLQFLGHQFHRI7($(VZLOOEH
VXPPDUL]HGE\SUHIHUUHGWHUPDQGWUHDWPHQWJURXSVRUWHGE\GHFUHDVLQJIUHTXHQF\LQWKH
RPDGDF\FOLQHJURXSIRUDOO7($(VUHODWHG7($(VVHULRXV7($(VDQG7($(VOHDGLQJWR
VWXG\GUXJGLVFRQWLQXDWLRQ7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVUHSRUWLQJD7($(RI
LQIXVLRQVLWHUHDFWLRQEDVHGRQWKH0HG'5$KLJKHUOHYHOWHUPZLOOEHWDEXODWHGE\
WUHDWPHQWJURXSSUHIHUUHGWHUPDQGVHYHULW\PLOGPRGHUDWHDQGVHYHUH7KHLQFLGHQFHRI
VHULRXV7($(V7($(VOHDGLQJWRSUHPDWXUHGLVFRQWLQXDWLRQRIWHVWDUWLFOHDQG7($(V
OHDGLQJWRDGRVHLQWHUUXSWLRQRIWHVWDUWLFOHZLOOEHVXPPDUL]HGE\V\VWHPRUJDQFODVVDQG
SUHIHUUHGWHUP)RUDOODQDO\VHVRI7($(VLIWKHVDPH$(EDVHGRQSUHIHUUHGWHUPLV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
UHSRUWHGIRUWKHVDPHVXEMHFWPRUHWKDQRQFHWKH$(LVFRXQWHGRQO\RQFHIRUWKDWSUHIHUUHG
WHUPDQGDWWKHKLJKHVWVHYHULW\DQGVWURQJHVWUHODWLRQVKLSWRWHVWDUWLFOH
7KHWDEOHRIDOO7($(VRFFXUULQJZKLOHRQWUHDWPHQWDQGSRVWWUHDWPHQWZLOOEHVXPPDUL]HG
E\V\VWHPRUJDQFODVVDQGSUHIHUUHGWHUPIRUWKRVHVXEMHFWVZKRUHFHLYHGDWOHDVWGD\VRILY
WHVWDUWLFOH7($(VRFFXUULQJLHZLWKDVWDUWGDWHDQGWLPHGXULQJWKHWLPHSHULRGVXEMHFWV
DUHRQWUHDWPHQWDQGVHSDUDWHO\IRUWKHWLPHSHULRGVXEMHFWVDUHRQLYDQGSRWHVWDUWLFOHZLOO
EHVXPPDUL]HGE\V\VWHPRUJDQFODVVDQGSUHIHUUHGWHUP
,QDGGLWLRQDOO$(VLQFOXGLQJQRQ7($(VVHULRXV7($(V7($(VOHDGLQJWR
GLVFRQWLQXDWLRQRIWHVWDUWLFOHDQG7($(VOHDGLQJWRGRVHLQWHUUXSWLRQRIWHVWDUWLFOHZLOOEH
SURYLGHGLQOLVWLQJVE\WUHDWPHQWJURXSVWXG\VLWHVXEMHFWYHUEDWLPWHUP0HG'5$V\VWHP
RUJDQFODVVDQGSUHIHUUHGWHUPVWDUWDQGHQGGDWHVHULRXVQHVVIODJVHYHULW\UHODWLRQVKLSWR
WHVWDUWLFOHUHODWLRQVKLSWRVWXG\SURWRFRODFWLRQWDNHQZLWKWHVWDUWLFOHQRQWHVWDUWLFOHDFWLRQ
WDNHQDQGRXWFRPH
 9LWDO6LJQV
%ORRGSUHVVXUHV\VWROLFDQGGLDVWROLFUHVSLUDWRU\UDWHWHPSHUDWXUHDQGSXOVHKHDUWUDWHZLOO
EHVXPPDUL]HGXVLQJGHVFULSWLYHVWDWLVWLFVDWWKHIROORZLQJWLPHSRLQWVSULRUWRHDFKLQIXVLRQ
ZKLOHWKHVXEMHFWLVRQLYWUHDWPHQW(279LVLW37(9LVLWDQGKLJKHVWDQGORZHVW
SRVWEDVHOLQHYDOXH+HDUWUDWHDQGEORRGSUHVVXUHZLOOEHVXPPDUL]HGIRUWKHIROORZLQJ
DGGLWLRQDOWLPHSRLQWVIRUWKHILUVWGRVHVRIWHVWDUWLFOHMXVWSULRUWRWKHILUVWLQIXVLRQ
ZLWKLQWRPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQDQGWRKRXUVDIWHUWKHVWDUW
RIWKHILUVWLQIXVLRQ'HVFULSWLYHVWDWLVWLFVRIWKHFKDQJHIURPEDVHOLQHWRHDFKSRVWEDVHOLQH
WLPHSRLQWDQGWKHKLJKHVWDQGORZHVWSRVWEDVHOLQHYDOXHZLOODOVREHSURYLGHG%DVHOLQHLV
GHILQHGDVWKHYDOXHFORVHVWWREXWSULRUWRWKHLQLWLDWLRQRIWHVWDUWLFOHDGPLQLVWUDWLRQ,IQR
YDOXHLVDYDLODEOHSULRUWRWKHLQLWLDWLRQRIWHVWDUWLFOHDGPLQLVWUDWLRQDYDOXHZLWKLQKRXUV
DIWHULQLWLDWLRQRIWHVWDUWLFOHDGPLQLVWUDWLRQ
3RVWEDVHOLQHYLWDOVLJQVZLOOEHGHILQHGDVFOLQLFDOO\QRWDEOH&1LIWKH\PHHWWKHFULWHULRQ
YDOXHRUERWKWKHFULWHULRQYDOXHDQGWKHFKDQJHIURPEDVHOLQHFULWHULRQOLVWHGLQ7DEOH7KH
LQFLGHQFHRI&1YLWDOVLJQVZLOOEHVXPPDUL]HGE\WLPHSRLQWDQGWUHDWPHQWJURXSDQGZLOO
EHOLVWHGDQGIODJJHGLQE\VXEMHFWOLVWLQJV7KHRYHUDOOSRVWEDVHOLQHLQFLGHQFHRI&1YDOXHV
IRUHDFKYLWDOVLJQSDUDPHWHUZKLFKLQFOXGHVYDOXHVIURPXQVFKHGXOHGSRVWEDVHOLQHYLVLWV
ZLOODOVREHVXPPDUL]HG$OLVWLQJZLOODOVREHSURYLGHGRIVXEMHFWVZLWKD&1YLWDOVLJQDQG
ZLOOOLVWDOOYDOXHVIRUDYLWDOVLJQQRWHGDV&1


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
7DEOH
&ULWHULDIRU7UHDWPHQW(PHUJHQW&OLQLFDOO\1RWDEOH9LWDO6LJQV
9LWDO6LJQ3DUDPHWHU
)ODJ
&ULWHULRQ9DOXH
&KDQJHIURP%DVHOLQH
6\VWROLF%ORRG3UHVVXUH
PP+J
+LJK&+
t
,QFUHDVHRItPP+J
/RZ&/
d
'HFUHDVHRItPP+J
'LDVWROLF%ORRG3UHVVXUH
PP+J
+LJK&+
t
,QFUHDVHRItPP+J
/RZ&/
d
'HFUHDVHRItPP+J
+HDUW5DWHESP
+LJK&+
t
,QFUHDVHRItESP
/RZ&/
d
'HFUHDVHRItESP
7HPSHUDWXUHR&
/RZ&/

1$
+LJK&+
!
1$

 (OHFWURFDUGLRJUDP
$FHQWUDOYHQGRUZLWKUHDGHUVEOLQGHGWRWUHDWPHQWDVVLJQPHQWZLOOSHUIRUPWKHUHDGLQJRIWKH
(&*V7KHFHQWUDO(&*UHVXOWVZLOOEHXVHGIRUWKHVWDWLVWLFDODQDO\VHV
'HVFULSWLYHVWDWLVWLFVIRU(&*SDUDPHWHUVKHDUWUDWH55LQWHUYDO35LQWHUYDO456LQWHUYDO
47LQWHUYDODQG47FLQWHUYDODWEDVHOLQHWRPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQ
RIWKHILUVWDQGWKLUGGRVHVRIWHVWDUWLFOH'D\GD\DQGDWWKH(279LVLWDQGWKH
FKDQJHIURPEDVHOLQHZLOOEHSUHVHQWHGE\WUHDWPHQWJURXS7KH47FLQWHUYDOZLOOEH
SUHVHQWHGE\ERWKWKH%D]HWW47F% 4755òDQGWKH)ULGHULFLD47F) 4755ѿ
FRUUHFWLRQV7KHFKDQJHIURPEDVHOLQHWRWKHPLQLPXPDQGPD[LPXPSRVWEDVHOLQHYDOXHV
ZLOODOVREHVXPPDUL]HGE\WUHDWPHQWJURXS%DVHOLQHLVGHILQHGDVWKHYDOXHFORVHVWWREXW
SULRUWRWKHLQLWLDWLRQRIWHVWDUWLFOHDGPLQLVWUDWLRQ,IQRYDOXHLVDYDLODEOHSULRUWRWKH
LQLWLDWLRQRIWHVWDUWLFOHDGPLQLVWUDWLRQDYDOXHZLWKLQKRXUVDIWHULQLWLDWLRQRIWHVWDUWLFOH
DGPLQLVWUDWLRQ
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDQ\SRVWEDVHOLQHLQFUHDVHLQ47F)DQGDQ\
SRVWEDVHOLQHLQFUHDVHRI!PVHFRU!PVHFLQ47F)ZLOOEHVXPPDUL]HGE\WUHDWPHQW
JURXS7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZLWKDEDVHOLQH47F)PVHFDQGZLWKD
SRVWEDVHOLQH47F)RI!PVHFDQGZLWKDEDVHOLQH47F)DQGZLWKDSRVWEDVHOLQH
47F)RI!PVHFZLOODOVREHVXPPDUL]HGE\WUHDWPHQWJURXS7KHQXPEHUDQG
SHUFHQWDJHRIVXEMHFWVZLWKDSRVWEDVHOLQHLQFUHDVHLQ47F)RI!PVHFUHVXOWLQJLQD
SRVWEDVHOLQH47F)RI!PVHFRU!PVHFZLOODOVREHVXPPDUL]HGE\WUHDWPHQW
JURXS$OLVWLQJZLOODOVREHSURYLGHGRIVXEMHFWVZLWKD47F)WKDWPHHWVRQHRIWKHFULWHULD
OLVWHGDERYHDQGZLOOOLVWDOO47F)YDOXHVIRUWKHVXEMHFW
7KHGLVWULEXWLRQRI47F)YDOXHVPVHF!PVHF!PVHFDQG
!PVHFDWHDFKWLPHSRLQWDQGWKHGLVWULEXWLRQRIFKDQJHIURPEDVHOLQHLQ47F)YDOXHV
DWHDFKWLPHSRLQWRUOHVV>QRLQFUHDVH@PVHFPVHFDQG!PVHFZLOOEH
VXPPDUL]HGE\WUHDWPHQWJURXS


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 /DERUDWRU\9DOXHV
6XPPDULHVRIODERUDWRU\GDWDZLOOLQFOXGHKHPDWRORJ\FKHPLVWU\DQGFRDJXODWLRQ,15
RQO\SDUDPHWHUV/DERUDWRU\SDUDPHWHUVZLOOEHSUHVHQWHGLQDOSKDEHWLFRUGHUZLWKWKH
IROORZLQJH[FHSWLRQVGLIIHUHQWLDOVRIZKLWHEORRGFHOO:%&FRXQWVZLOOEHSUHVHQWHG
IROORZLQJWKH:%&UHVXOWVDQGFKHPLVWU\SDUDPHWHUVZLOOILUVWEHJURXSHGE\RUJDQFODVV
UHQDOOLYHUHOHFWURO\WHVDQGRWKHUDQGSUHVHQWHGDOSKDEHWLFDOO\ZLWKLQHDFKRIWKHVH
FODVVHVDVVKRZQEHORZ
7DEOH
/DERUDWRU\3DUDPHWHUVDQG2UJDQ&ODVV
2UJDQ&ODVV
/DERUDWRU\3DUDPHWHU
5HQDO
&UHDWLQLQH
5HQDO
8UHD
/LYHU
$ONDOLQHSKRVSKDWDVH$/3
/LYHU
$/7
/LYHU
$67
/LYHU
7RWDO%LOLUXELQ
/LYHU
**7
(OHFWURO\WHV
%LFDUERQDWH
(OHFWURO\WHV
&DOFLXP
(OHFWURO\WHV
&KORULGH
(OHFWURO\WHV
0DJQHVLXP
(OHFWURO\WHV
3RWDVVLXP
(OHFWURO\WHV
6RGLXP
2WKHU
$OEXPLQ
2WKHU
$P\ODVH
2WKHU
%ORRGJOXFRVH
2WKHU
&KROHVWHURO
2WKHU
&.
2WKHU
/'+
2WKHU
/LSDVH
2WKHU
3KRVSKDWH
2WKHU
7RWDOSURWHLQ
2WKHU
8ULFDFLG

%DVHOLQHLVGHILQHGDVWKHFHQWUDOODEYDOXHFORVHVWWRDQGSULRUWRWKHILUVWGRVHRIVWXG\GUXJ
,IQRFHQWUDOODEYDOXHLVDYDLODEOHSULRUWRWKHILUVWGRVHRIVWXG\GUXJWKHORFDOODEYDOXHWKDW
LVFORVHVWWRDQGSULRUWRWKHILUVWGRVHRIVWXG\GUXJZLOOEHXVHGDVEDVHOLQH)RUE\YLVLW
DQDO\VHVFHQWUDOODEYDOXHVZLOOEHXVHGXQOHVVQRFHQWUDOODEYDOXHZDVREWDLQHGLQWKHYLVLW
ZLQGRZ,QWKLVFDVHORFDOODEYDOXHVZLOOEHXVHGIRUWKHE\YLVLWDQDO\VHV$OOODEYDOXHV
FHQWUDODQGORFDODUHXVHGIRUGHWHUPLQDWLRQRIWKHRYHUDOOZRUVWSRVWEDVHOLQHYDOXH
6HYHUDODQDO\VHVRIWKHODERUDWRU\GDWDZLOOEHSUHVHQWHG'HVFULSWLYHVWDWLVWLFVEDVHGRQ
,QWHUQDWLRQDO6\VWHP>6,@XQLWVIRUFKHPLVWU\KHPDWRORJ\DQGFRDJXODWLRQYDOXHVDQGWKH
FKDQJHIURPEDVHOLQHZLOOEHVXPPDUL]HGE\WUHDWPHQWJURXSDWHDFKWLPHSRLQW'D\>
GD\@'D\>GD\@'D\(279LVLWDQG37(9LVLWDQGIRUWKHRYHUDOOZRUVWYDOXH


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
SRVWEDVHOLQHZKLFKLQFOXGHVXQVFKHGXOHGYLVLWV$SSHQGL[SURYLGHVWKHGLUHFWLRQDOLW\RI
WKHZRUVWYDOXHVIRUHDFKODERUDWRU\SDUDPHWHU
&OLQLFDOO\QRWDEOHODERUDWRU\YDOXHVZLOOEHGHWHUPLQHGEDVHGRQWKHPRGLILHG'LYLVLRQRI
0LFURELRORJ\DQG,QIHFWLRXV'LVHDVHV'0,'FULWHULDLQ$SSHQGL[6KLIWWDEOHVZLOOEH
SUHVHQWHGWRVKRZWKHQXPEHURIVXEMHFWVZLWKDODERUDWRU\YDOXHZLWKDJUDGHRI
RUDWEDVHOLQHYHUVXVWKHYDOXHDWHDFKYLVLWDQGWKHZRUVWSRVWEDVHOLQHYDOXH1XPEHUDQG
SHUFHQWDJHRIVXEMHFWVZLWKDWOHDVWDJUDGHLQFUHDVHIURPEDVHOLQHEDVHGRQ'0,'
FULWHULDZLOOEHVXPPDUL]HGE\WUHDWPHQWDUP3HUFHQWDJHVIRUHDFKODERUDWRU\WHVWZLOOEH
EDVHGRQWKHQXPEHURIVXEMHFWVZLWKDEDVHOLQHDQGSRVWEDVHOLQHHYDOXDWLRQRIWKHVSHFLILF
ODERUDWRU\WHVW$OLVWLQJZLOOEHSURYLGHGZKLFKJLYHVDOOODERUDWRU\UHVXOWVIRUDJLYHQ
ODERUDWRU\WHVWIRUVXEMHFWVZKRKDYHDWOHDVWRQHJUDGHLQFUHDVHIURPEDVHOLQH
7KHQXPEHUDQGSHUFHQWDJHEDVHGRQWKHQXPEHURIVXEMHFWVZLWKDQRUPDOOHYHODWEDVHOLQH
RIVXEMHFWVLQHDFKWUHDWPHQWJURXSZLWKDQHOHYDWHGWUDQVDPLQDVHOHYHO!îXSSHUOLPLWRI
QRUPDO>8/1@!î8/1DQG!î8/1DQHOHYDWHGELOLUXELQOHYHO!î8/1DQG
!î8/1ZLOOEHSUHVHQWHGE\VWXG\YLVLW$OLVWLQJRIVXEMHFWVZKRPHHWWKHODERUDWRU\
FULWHULDIRU+\¶VODZDWWKHVDPHYLVLWZLOODOVREHSURYLGHG7KHODERUDWRU\FULWHULDIRU+\¶V
ODZLVGHILQHGDV$/7RU$67!î8/1$/3î8/1DQGWRWDOELOLUXELQ
!8/1DQG$/7RU$67!î8/1$/3î8/1DQGWRWDOELOLUXELQ!î8/1
'HWDLOHGVXEMHFWOLVWLQJVRIDOOODERUDWRU\GDWDFROOHFWHGGXULQJWKHVWXG\ORFDODQGFHQWUDO
ODERUDWRU\GDWDZLOOEHSURYLGHGLQFOXGLQJFDOFXODWHGFUHDWLQLQHFOHDUDQFHXVLQJWKH
&RFNFURIW*DXOWHTXDWLRQ/DERUDWRU\YDOXHVRXWVLGHQRUPDOOLPLWVZLOOEHLGHQWLILHGLQWKH
VXEMHFWGDWDOLVWLQJVZLWKIODJVIRUORZ/DQGKLJK+DVZLOOODERUDWRU\YDOXHVWKDWPHHW
WKHFOLQLFDOO\QRWDEOHWKUHVKROGV&1
 3K\VLFDO([DPLQDWLRQV
6XEMHFWOLVWLQJVRIDOOSK\VLFDOH[DPLQDWLRQUHVXOWVE\ERG\V\VWHPZLOOEHSURYLGHG
3K\VLFDOH[DPLQDWLRQUHVXOWVZLOOEHFRGHGXVLQJ0HG'5$9HUVLRQ$Q\FKDQJHVIURP
EDVHOLQHZLOOEHUHFRUGHGDVDGYHUVHHYHQWV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 5(6285&(87,/,=$7,21$1$/<6(6
'HVFULSWLYHVWDWLVWLFVRIWKHIROORZLQJUHVRXUFHXWLOL]DWLRQSDUDPHWHUVZLOOEHSURYLGHGE\
WUHDWPHQWJURXS
 1XPEHURIGD\VLQWKHKRVSLWDOIURPWKHWLPHRILQLWLDWLRQRIWHVWDUWLFOHXQWLOGLVFKDUJH
$QDO\VHVZLOOEHFRPSOHWHGRQO\IRUWKRVHVXEMHFWVDGPLWWHGWRWKHKRVSLWDODQG
VHSDUDWHO\IRUDOOVXEMHFWV)RUWKHODWWHUVXEMHFWVZKRDUHQRWDGPLWWHGWRWKHKRVSLWDO
ZLOOEHDVVLJQHGDYDOXHRIIRUQXPEHURIGD\VLQWKHKRVSLWDO$QDO\VHVZLOODOVREH
FRPSOHWHGE\FRXQWU\
 1XPEHURIGD\VLQWKHKRVSLWDOIURPWKHWLPHRILQLWLDWLRQRIUHVFXHDQWLELRWLFLHD
VHFRQGDQWLELRWLFWKHUDS\XQWLOGLVFKDUJH$QDO\VHVZLOOEHFRPSOHWHGRQO\IRUWKRVH
VXEMHFWVDGPLWWHGWRWKHKRVSLWDODQGZKRUHTXLUHGDVHFRQGDQWLELRWLFWKHUDS\LHZHUH
WUHDWPHQWIDLOXUHVDQGVHSDUDWHO\IRUDOOVXEMHFWV)RUWKHODWWHUVXEMHFWVZKRDUHQRW
DGPLWWHGWRWKHKRVSLWDORUZKRGLGQRWUHTXLUHDVHFRQGDQWLELRWLFWKHUDS\ZLOOEH
DVVLJQHGDYDOXHRIIRUQXPEHURIGD\VLQWKHKRVSLWDO$QDO\VHVZLOODOVREHFRPSOHWHG
E\FRXQWU\
 1XPEHURIGD\VLQWKHKRVSLWDOIURPWKHWLPHRIDGPLVVLRQIRU&$%3XQWLOGLVFKDUJH
$QDO\VHVZLOOEHFRPSOHWHGRQO\IRUWKRVHVXEMHFWVDGPLWWHGWRWKHKRVSLWDODQG
VHSDUDWHO\IRUDOOVXEMHFWV)RUWKHODWWHUVXEMHFWVZKRDUHQRWDGPLWWHGWRWKHKRVSLWDO
ZLOOEHDVVLJQHGDYDOXHRIIRUQXPEHURIGD\VLQWKHKRVSLWDO$QDO\VHVZLOODOVREH
FRPSOHWHGE\FRXQWU\
 'XUDWLRQGD\VRIWHVWDUWLFOH
 2WKHUWHVWDUWLFOHH[SRVXUHYDULDEOHVDUHGHVFULEHGLQ6HFWLRQ


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 27+(55(/(9$17'$7$$1$/<6(66800$5,(6
 3URWRFRO'HYLDWLRQV
$OLVWLQJRIDOOSURWRFROGHYLDWLRQVZLOOEHSURYLGHG'HYLDWLRQVZLOODOVREHUHYLHZHGE\WKH
6SRQVRUDQGFDWHJRUL]HGLQWRJHQHUDOFDWHJRULHVVXFKDVUDQGRPL]DWLRQDWOHDVWRQH
LQFOXVLRQFULWHULRQQRWPHWDWOHDVWRQHH[FOXVLRQFULWHULDPHWVWXG\SURFHGXUHVYLVLWVQRW
GRQHVWXG\YLVLWRXWVLGHZLQGRZQRQFRPSOLDQFHZLWKGRVHDQGXVHRISURKLELWHG
PHGLFDWLRQVRUWUHDWPHQWVFRQVHQW,5%FRPSOLDQFHLVVXHVHWF7KH6SRQVRUZLOODOVR
FDWHJRUL]HWKHSURWRFROGHYLDWLRQVDVPDMRUDQGPLQRU5HYLHZRISURWRFROGHYLDWLRQVZLOOEH
FRQGXFWHGDQGILQDOL]HGSULRUWRXQEOLQGLQJWKHGDWDEDVH7KHQXPEHURIVXEMHFWVZLWKDW
OHDVWRQHSURWRFROGHYLDWLRQWKHQXPEHURIVXEMHFWVZLWKDPLQRUSURWRFROGHYLDWLRQWKH
QXPEHURIVXEMHFWVZLWKDPDMRUSURWRFROGHYLDWLRQDQGWKHQXPEHURIVXEMHFWVZLWKDWOHDVW
RQHPDMRUGHYLDWLRQLQHDFKFDWHJRU\ZLOOEHSUHVHQWHGE\WUHDWPHQWJURXSIRUWKH,77
SRSXODWLRQ$PDMRUGHYLDWLRQLVGHILQHGDVRQHWKDWSRWHQWLDOO\DIIHFWVWKHHIILFDF\DQGRU
VDIHW\DQDO\VHV
 3ULRUDQG&RQFRPLWDQW0HGLFDWLRQV
$OOPHGLFDWLRQVWDNHQZLWKLQGD\VSULRUWRWKHGDWHRILQIRUPHGFRQVHQWWKURXJKWKH)LQDO
)ROORZXS9LVLWZLOOEHUHFRUGHGRQWKHH&5)3ULRUPHGLFDWLRQVZLOOEHVXPPDUL]HGE\
:+2'58*9HUVLRQ'HF$QDWRPLFDO7KHUDSHXWLF&KHPLFDO&ODVVLILFDWLRQ$7&
OHYHOWKLUGOHYHOLQGLFDWHVWKHWKHUDSHXWLFSKDUPDFRORJLFVXEJURXSDQGJHQHULFPHGLFDWLRQ
QDPH0HGLFDWLRQVDUHFRQVLGHUHGSULRULIWDNHQSULRUWRWKHILUVWLQIXVLRQRIWHVWDUWLFOHRULI
WKHLUVWDUWGDWHLVXQNQRZQ6XEMHFWVZLOOEHFRXQWHGRQO\RQFHIRUDQ$7&FODVVDQGJHQHULF
PHGLFDWLRQQDPH&RQFRPLWDQWPHGLFDWLRQVWDNHQGXULQJDQGDIWHUWKHVWXG\WUHDWPHQW
SHULRGZLOOEHVLPLODUO\VXPPDUL]HG0HGLFDWLRQVDUHFRQVLGHUHGFRQFRPLWDQWLIWDNHQRQRU
DIWHUWKHILUVWLQIXVLRQRIWHVWDUWLFOHRULIWKHLUVWRSGDWHLVXQNQRZQRUPDUNHGDVFRQWLQXLQJ
7KHQXPEHUDQGSHUFHQWDJHRIVXEMHFWVZKRUHFHLYHWKHIROORZLQJSULRUDQGFRQFRPLWDQW
PHGLFDWLRQVZLOOEHVXPPDUL]HGE\WUHDWPHQWJURXS
 6\VWHPLFDQWLEDFWHULDOPHGLFDWLRQVWDNHQZLWKLQKRXUVSULRUWRILUVWLQIXVLRQRIWHVW
DUWLFOHDQGWKHUHDVRQVIRUUHFHLSW,77DQG&(37(SRSXODWLRQV
 6\VWHPLFDQWLEDFWHULDOPHGLFDWLRQVH[FOXGLQJWHVWDUWLFOHWDNHQEHWZHHQILUVWLQIXVLRQRI
WHVWDUWLFOHDQGWKH(279LVLW&((27SRSXODWLRQDQGWKHUHDVRQVIRUUHFHLSW
 6\VWHPLFDQWLEDFWHULDOPHGLFDWLRQVH[FOXGLQJWHVWDUWLFOHWDNHQEHWZHHQILUVWLQIXVLRQRI
WHVWDUWLFOHDQGWKH37(9LVLW&(37(SRSXODWLRQDQGWKHUHDVRQVIRUUHFHLSW
 1RQDQWLEDFWHULDOPHGLFDWLRQVWDNHQSULRUWRLQIRUPHGFRQVHQWWKURXJKWKHILUVWLQIXVLRQ
RIWHVWDUWLFOH,77DQG6DIHW\SRSXODWLRQV
 1RQDQWLEDFWHULDOPHGLFDWLRQVWDNHQIURPWKHILUVWLQIXVLRQRIWHVWDUWLFOHWKURXJKWKH
)LQDO)ROORZXS9LVLW,77DQG6DIHW\SRSXODWLRQV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 5()(5(1&(6
 )DUULQJWRQ&30DQQLQJ*7HVWVWDWLVWLFVDQGVDPSOHVL]HIRUPXODHIRU
FRPSDUDWLYHELQRPLDOWULDOVZLWKQXOOK\SRWKHVLVRIQRQ]HURULVNGLIIHUHQFHRUQRQXQLW\
UHODWLYHULVN6WDW0HG'HF±
 0LHWWLQHQ21XUPLQHQ0&RPSDUDWLYHDQDO\VLVRIWZRUDWHV6WDW0HG

 7DOERW*+3RZHUV-+)OHPLQJ756LXFLDN-$%UDGOH\-%RXFKHU+RQEHKDOIRIWKH
&$%3$%666,3URMHFW7HDP3URJUHVVRQ'HYHORSLQJ(QGSRLQWVIRU
5HJLVWUDWLRQDO&OLQLFDO7ULDOVRI&RPPXQLW\$FTXLUHG%DFWHULDO3QHXPRQLDDQG$FXWH
%DFWHULDO6NLQDQG6NLQ6WUXFWXUH,QIHFWLRQV8SGDWH)URPWKH%LRPDUNHUV&RQVRUWLXPRI
WKH)RXQGDWLRQIRUWKH1DWLRQDO,QVWLWXWHVRI+HDOWK&OLQ,QIHFW'LV
 7HIODUR)XOO3UHVFULELQJ,QIRUPDWLRQ5HYLVLRQ)RUHVW3KDUPDFHXWLFDOV,QF6W
/RXLV02


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
 $33(1',&(6
$SSHQGL[
6FKHGXOHRI$VVHVVPHQWVDQG3URFHGXUHV
$SSHQGL[
6XPPDU\RI(IILFDF\$QDO\VHV
$SSHQGL[
$GYHUVH(YHQWDQG3ULRU&RQFRPLWDQW0HGLFDWLRQ'DWH,PSXWDWLRQV
$SSHQGL[
'LUHFWLRQDOLW\RI:RUVW/DERUDWRU\3DUDPHWHUV
$SSHQGL[
0RGLILHG'LYLVLRQRI0LFURELRORJ\DQG,QIHFWLRXV'LVHDVHV$GXOW7R[LFLW\
7DEOH



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
6FKHGXOHRI$VVHVVPHQWVDQG3URFHGXUHV
6WXG\3KDVH

'RXEOH%OLQG3KDVH
)ROORZXS3KDVH

LY7UHDWPHQW3KDVH
LYRUSR7UHDWPHQW3KDVH

6WXG\'D\D
6FUHHQLQJ
E
'D\
'D\
'D\
'D\
'D\
'D\
F
'D\
'D\F
(27G
37(H
)LQDO
)ROORZXS
I
LYGRVH
LYGRVH
6FUHHQLQJDQG(OLJLELOLW\3URFHGXUHV
6LJQHG,QIRUPHG&RQVHQWJ
;












0HGLFDO+LVWRU\FXUUHQWPHGLFDO
FRQGLWLRQVGHPRJUDSK\
;












$VVHVVPHQWRI&$%3V\PSWRP
VHYHULW\K
;


;
;
;
;
;
;
;
;
;

&KHVW;UD\RU&7VFDQL
;












32575LVN&ODVV$%*M
;












%ORRGDQGXULQHVDPSOHVIRUORFDO
ODEKHPDWRORJ\FKHPLVWU\
XULQDO\VLVSUHJQDQF\N
;












5HYLHZRI,QFOXVLRQDQG
([FOXVLRQFULWHULD5DQGRPL]DWLRQ
LI(OLJLEOH
;












&OLQLFDO3URFHGXUHVDQG7HVW$UWLFOH$GPLQLVWUDWLRQ
7HVW$UWLFOH$GPLQLVWUDWLRQDQG
$FFRXQWDELOLW\O

;
;
;
;
;
;
;
;
;
;


3K\VLFDOH[DPLQDWLRQP
;


;
;
;
;
;
;
;
;
;

9LWDOVLJQV
;
;Q
;Q
;Q
;
;
;
;
;
;
;
;

OHDG(&*R
;
;

;




;

;


%ORRGIRU&HQWUDO/DEWHVWV
KHPDWRORJ\FKHPLVWU\SUHJQDQF\
;S




;


;
;
;S
;S

$GYHUVH(YHQWVT
;
;;
3ULRU	&RQFRPLWDQW
0HGLFDWLRQVU
;
;;
3ODVPDVDPSOHVLQKHSDULQIRU
3.DQDO\VHVV



;
;
;
;






$VVHVVPHQWIRUSR6ZLWFKRU
QHHGIRUFRQWLQXHGWKHUDS\W





;
;
;
;
;





2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
6WXG\3KDVH

'RXEOH%OLQG3KDVH
)ROORZXS3KDVH

LY7UHDWPHQW3KDVH
LYRUSR7UHDWPHQW3KDVH

6WXG\'D\D
6FUHHQLQJ
E
'D\
'D\
'D\
'D\
'D\
'D\
F
'D\
'D\F
(27G
37(H
)LQDO
)ROORZXS
I
LYGRVH
LYGRVH
,QYHVWLJDWRU¶V$VVHVVPHQWRI
&OLQLFDO5HVSRQVH










;
;

0LFURELRORJLFDO3URFHGXUHV
%ORRGFXOWXUHX
;
$V&OLQLFDOO\,QGLFDWHG



5HVSLUDWRU\FXOWXUH	*UDP
VWDLQY
;









;


8ULQHIRU/RFDOODE/HJLRQHOOD
SQHXPRSKLODDQG6WUHSWRFRFFXV
SQHXPRQLDHDQWLJHQWHVW
;










;

%ORRGIRU&HQWUDOODE/HJLRQHOOD
SQHXPRSKLOD0\FRSODVPD
SQHXPRQLDH	&KODP\GRSKLOD
SQHXPRQLDHVHURORJ\
;










;

$%* DUWHULDOEORRGJDV$( DGYHUVHHYHQW%3 EORRGSUHVVXUHȕK&* EHWD±KXPDQ&KRULRQLF*RQDGRWURSLQ&$%3 FRPPXQLW\DFTXLUHGEDFWHULDOSQHXPRQLD
&7 FRPSXWHGWRPRJUDSK\&;5 FKHVW;UD\(&* HOHFWURFDUGLRJUDPH&5) HOHFWURQLFFDVHUHSRUWIRUP(27 HQGRIWUHDWPHQW,&) LQIRUPHGFRQVHQWIRUP
,[56 ,QWHUDFWLYH9RLFH5HVSRQVH6\VWHP,QWHUDFWLYH:HE5HVSRQVH6\VWHP3. SKDUPDFRNLQHWLFV37( SRVWWKHUDS\HYDOXDWLRQ6$( VHULRXVDGYHUVHHYHQW
D
6WXG\'D\LVWKHILUVWGD\RIWHVWDUWLFOHDGPLQLVWUDWLRQ6XEVHTXHQWVWXG\GD\VPD\EHFRQVHFXWLYHFDOHQGDUGD\V
E
)ROORZLQJWKHVLJQLQJRIDQ,&)DOO6FUHHQLQJHYDOXDWLRQVVKRXOGEHFRPSOHWHGZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
F
7KH'D\YLVLWLVRSWLRQDOIRUVXEMHFWVWKDWKDYHEHHQVZLWFKHGWRSRWHVWDUWLFOHDQGKDYHEHHQGLVFKDUJHGIURPDKRVSLWDOVHWWLQJ$'D\YLVLWVKRXOGEHFRQGXFWHGIRU
VXEMHFWVZLWKWUHDWPHQWH[WHQGLQJEH\RQGGD\VXQOHVVWKLVYLVLWFRLQFLGHVZLWKWKH(27YLVLW
G
7REHFRQGXFWHGRQWKHGD\RIRUZLWKLQGD\VIROORZLQJWKHODVWGRVHRIWHVWDUWLFOH6KRXOGDOVREHFRQGXFWHGIRUDQ\SUHPDWXUHO\ZLWKGUDZQVXEMHFW
H
7REHFRQGXFWHGWRGD\VDIWHUWKHVXEMHFW¶VODVWGD\RIWKHUDS\
I
7REHFRQGXFWHGWRGD\VDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWHVWDUWLFOH7KH)LQDO)ROORZXSDVVHVVPHQWPD\EHFRQGXFWHGYLDWHOHSKRQHFRQWDFWRUE\DQRWKHU
LQWHUDFWLYHWHFKQRORJ\IRUVXEMHFWVZKRZHUHFRQVLGHUHGWREH&OLQLFDO6XFFHVVHVDQGKDGQR$(VQRWHGDWRUDIWHUWKH37(YLVLW2WKHUZLVHWKHYLVLWPXVWEHFRQGXFWHGLQ
SHUVRQ
J
:ULWWHQDQGVLJQHG,&)PXVWEHREWDLQHGEHIRUHDQ\DVVHVVPHQWLVSHUIRUPHG
K
7KHLQYHVWLJDWRUVKRXOGDVVHVVWKHVHYHULW\RIWKHVXEMHFW¶V&$%3V\PSWRPVRIFRXJKVSXWXPSURGXFWLRQSOHXULWLFFKHVWSDLQDQGG\VSQHDEDVHGXSRQWKH&RPPXQLW\$FTXLUHG
%DFWHULDO3QHXPRQLD6XEMHFW6\PSWRP6HYHULW\*XLGDQFH)UDPHZRUNIRU,QYHVWLJDWRU$VVHVVPHQWLQ$SSHQGL[RIWKHSURWRFRO
L
6XEMHFWVPXVWKDYHDFRQILUPLQJ&;5RU&7VFDQFRQVLVWHQWZLWKDFXWHEDFWHULDOSQHXPRQLDZLWKLQWKHKRXUVSULRUWRWKHILUVWGRVHRIWHVWDUWLFOH
M
2QO\VXEMHFWVZLWKD32575LVN&ODVVRI,,,,,RU,9DUHHOLJLEOHIRUHQUROOPHQWVHH$SSHQGL[RIWKHSURWRFRO
N
/RFDOODERUDWRU\KHPDWRORJ\DQGFKHPLVWU\HYDOXDWLRQVUHTXLUHGIRUDVVHVVLQJVXEMHFWHOLJLELOLW\XULQDO\VLVIRU:%&DXULQHSUHJQDQF\WHVWIRUZRPHQRQO\VHUXP
WUDQVDPLQDVHRUELOLUXELQOHYHOV


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
O
7KHWRWDOGXUDWLRQRIWHVWDUWLFOHWKHUDS\LYSOXVSRIRUDOOVXEMHFWVZLOOEHDWOHDVWGD\VDQGQRPRUHWKDQGD\V7KHSKDUPDFLVWRUGHVLJQHHZLOOEHXQEOLQGHGWRSUHSDUH
DSSURSULDWHGRVHVRIWKH,[56LGHQWLILHGWHVWDUWLFOH$QXQEOLQGHGPRQLWRUZLOOSHUIRUPGUXJDFFRXQWDELOLW\DQGUHYLHZWKHSKDUPDFLVW¶VUHFRUGV6XEMHFWVGLVFKDUJHGZLWKSR
WHVWDUWLFOHZLOOEHDVNHGWRUHWXUQDOOXQXVHGWHVWDUWLFOHDQGSDFNDJLQJDWHDFKYLVLWVHH6HFWLRQRIWKHSURWRFRO$WWKH(27YLVLWVXEMHFWVGLVFKDUJHGZLWKSRWHVWDUWLFOHZLOO
UHWXUQDQ\UHPDLQLQJXQXVHGSRWHVWDUWLFOHDQGVLWHVWDIIZLOOSHUIRUPDFFRXQWDELOLW\
P $IXOOSK\VLFDOH[DPLQDWLRQZLOOEHFRPSOHWHGDW6FUHHQLQJVHH6HFWLRQRIWKHSURWRFROWKHUHDIWHURQO\FKDQJHVIURP6FUHHQLQJPHDVXUHPHQWVVKRXOGEHUHFRUGHGDV$(VLQ
WKHH&5)V
Q
)RUWKHILUVWGRVHVRIWHVWDUWLFOHKHDUWUDWHDQG%3VKRXOGEHUHFRUGHGDWWKHIROORZLQJWLPHVMXVWSULRUWRWKHILUVWLQIXVLRQZLWKLQPLQXWHVDIWHUWKHVWDUWRIWKHILUVW
LQIXVLRQDQGDWKRXUVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQVHH7DEOHDQG6HFWLRQRIWKHSURWRFRO
R
$OHDG(&*VKRXOGEHSHUIRUPHGMXVWSULRUZLWKLQPLQXWHVDQGPLQXWHVDIWHUWKHVWDUWRIWKHILUVWLQIXVLRQRIWKHILUVWDQGWKLUGGRVHVRIWHVWDUWLFOHDWWKH'D\
YLVLWDWWKH(27YLVLWDQGDVRWKHUZLVHFOLQLFDOO\LQGLFDWHGVHH6HFWLRQRIWKHSURWRFRO
S
%ORRGZLOOEHFROOHFWHGIURPDOOIHPDOHVXEMHFWVIRUDVHUXPȕK&*SUHJQDQF\WHVWDWWKH&HQWUDO/DERUDWRU\DWWKH6FUHHQLQJ(27DQG37(YLVLWV
T
$VXEMHFW¶V$(VDQG6$(VZLOOEHUHFRUGHGDQGUHSRUWHGIURPVLJQLQJRIWKH,&)WRWKH)LQDO)ROORZXSDVVHVVPHQW
U
7UHDWPHQWVWKDWKDYHEHHQDGPLQLVWHUHGZLWKLQWKHGD\VSULRUWRWKHGDWHRIVLJQLQJWKH,&)RUGXULQJWKH6FUHHQLQJSKDVHZLOOEHUHFRUGHGLQWKHH&5)$OOPHGLFDWLRQVDQG
VLJQLILFDQWQRQGUXJWKHUDSLHVDGPLQLVWHUHGDIWHUWKHILUVWGRVHRIWHVWDUWLFOHPXVWEHUHFRUGHGLQWKHH&5)VHH6HFWLRQRIWKHSURWRFRO
V
8SWRVDPSOHVZLOOEHFROOHFWHGSHUVXEMHFW7KH3.VDPSOHFROOHFWLRQVFKHGXOHIRUWKHLQGLYLGXDOVXEMHFWZLOOEHSURYLGHGE\WKHVSRQVRUVHH6HFWLRQRIWKHSURWRFRO
W
$WDQ\WLPHDIWHUWKHILUVWGD\VRILYWUHDWPHQWDIWHULYGRVHVWKHVXEMHFWPD\EHVZLWFKHGWRSRPHGLFDWLRQEDVHGXSRQGHWHUPLQDWLRQRIFOLQLFDOVWDELOLW\5HIHUWR
SURWRFRO6HFWLRQRIWKHSURWRFROIRUUHTXLUHGFULWHULDWRVZLWFKWRSRWUHDWPHQW$WWKHLQYHVWLJDWRU¶VGLVFUHWLRQDOOWKHUDS\PD\EHGLVFRQWLQXHGDIWHUWKHVHYHQWKGD\
RIWUHDWPHQWDIWHULYRUSRWRWDOGRVHVZKHQWKHLQIHFWLRQLVFRQVLGHUHGFOLQLFDOO\FXUHGEDVHGRQQRUPDOL]DWLRQRIWKHFOLQLFDOVLJQVDQGV\PSWRPVRILQIHFWLRQDQGWKH
LQYHVWLJDWRU¶VFOLQLFDODVVHVVPHQWWKDWFRQWLQXHGV\VWHPLFDQWLEDFWHULDOWKHUDS\LVQRORQJHUQHHGHG
X
,I6FUHHQLQJEORRGFXOWXUHVDUHSRVLWLYHIRUDSRWHQWLDOSDWKRJHQEORRGFXOWXUHVPXVWEHUHSHDWHGDWHDFKYLVLWRUPRUHIUHTXHQWO\LIFOLQLFDOO\LQGLFDWHGXQWLOQHJDWLYHFXOWXUHV
DUHREWDLQHGVHH6HFWLRQRIWKHSURWRFRO
Y
&XOWXUHDQG*UDPVWDLQIURPDQDGHTXDWHTXDOLW\VSXWXPVSHFLPHQRURWKHUUHVSLUDWRU\VSHFLPHQ$WWKH(27YLVLWUHVSLUDWRU\VSHFLPHQFXOWXUHVDQG*UDPVWDLQVVKRXOGEH
REWDLQHGRQO\IRUVXEMHFWVZKRDUH&OLQLFDO)DLOXUHVDQGUHTXLUHDOWHUQDWLYHDQWLEDFWHULDOWUHDWPHQWIRU&$%3VHH6HFWLRQRIWKHSURWRFRO


2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
6XPPDU\RI(IILFDF\$QDO\VHV

WRKRXUV
SRVWILUVWGRVH
(QGRI7KHUDS\9LVLW
(27
3RVW7UHDWPHQW
(YDOXDWLRQ9LVLW37(
,77
(&5
,$
,$
0LFUR,77
(&5
(&5E\SDWKRJHQ
(&5E\SDWKRJHQDQG
0,&
0LFURE\VXEMHFW
0LFURE\SDWKRJHQ
,$
,$E\SDWKRJHQ
,$E\SDWKRJHQDQG0,&
0LFURE\VXEMHFW
0LFURE\SDWKRJHQ
HPLFUR,77
(&5
(&5E\SDWKRJHQ

,$E\SDWKRJHQ
&((27

,$

&(37(


,$
0((27

0LFURE\VXEMHFW
0LFURE\SDWKRJHQ

0(37(


,$
,$E\SDWKRJHQ
,$E\SDWKRJHQDQG0,&
0LFURE\VXEMHFW
0LFURE\SDWKRJHQ



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
$GYHUVH(YHQWDQG3ULRU&RQFRPLWDQW0HGLFDWLRQ'DWH
,PSXWDWLRQV
$GYHUVH(YHQW6WDUW6WRS'DWH,PSXWDWLRQ
,PSXWDWLRQ5XOHVIRU3DUWLDO'DWHV' GD\0 PRQWK< \HDU
3DUDPHWHU
0LVVLQJ
$GGLWLRQDO&RQGLWLRQV
,PSXWDWLRQ
6WDUWGDWH
IRU$(V
'
0DQG<VDPHDV0DQG<RIILUVWGRVHRIVWXG\GUXJ
'DWHRIILUVWGRVHRIVWXG\GUXJ
0DQGRU<QRWVDPHDVGDWHRIILUVWGRVHRIVWXG\GUXJ
)LUVWGD\RIPRQWK
'DQG0
<VDPHDV<RIILUVWGRVHRIVWXG\GUXJ
'DWHRIILUVWGRVHRIVWXG\GUXJ
<SULRUWR<RIILUVWGRVHRIVWXG\GUXJEXWVDPHDV<
RIVFUHHQLQJGDWH
'DWHRIVFUHHQLQJGDWH
'0<
1RQHGDWHFRPSOHWHO\PLVVLQJ
'DWHRIILUVWGRVHRIVWXG\GUXJ
6WRSGDWH
IRU$(V
'
0DQG<VDPHDV0DQG<RIODVWGRVHRIVWXG\GUXJ
'DWHRIODVWGRVHRIVWXG\GUXJ
0DQGRU<QRWVDPHDVGDWHRIODVWGRVHRIVWXG\GUXJ
8VHODVWGD\RIPRQWK
'DQG0
<VDPHDV<RIODVWGRVHRIVWXG\GUXJ
'DWHRIODVWGRVHRIVWXG\GUXJ
<QRWVDPHDV<RIODVWGRVHRIVWXG\GUXJ
8VH'HF
'0<
1RQHGDWHFRPSOHWHO\PLVVLQJ
1RLPSXWDWLRQEXWDVVXPHRQJRLQJ
1RWH,QDOOFDVHVLIDQHVWLPDWHGVWDUWGDWHLVDIWHUDFRPSOHWHVWRSGDWHXVHWKHILUVWGD\RIWKHVWRSGDWHPRQWK
6LPLODUO\LIWKHHVWLPDWHGVWRSGDWHLVEHIRUHDFRPSOHWHRULPSXWHGVWDUWGDWHXVHWKHODVWGD\RIWKHVWDUWGD\PRQWK
,QDOOFDVHVLILWFDQQRWEHGHWHUPLQHGLIWKHDGYHUVHHYHQWRFFXUUHGSULRUWRRUDIWHUWKHILUVWGRVHRIWHVWDUWLFOHWKHDGYHUVH
HYHQWVKRXOGEHGHILQHGDVWUHDWPHQWHPHUJHQW

3ULRUDQG&RQFRPLWDQW0HGLFDWLRQ6WDUW'DWH,PSXWDWLRQ
3DUDPHWHU
7\SHRI
0HGLFDWLRQ
,PSXWDWLRQ
6WDUWGDWHIRUFRQ
PHGV
1RQ
$QWLEDFWHULDO
,ILWFDQQRWEHGHWHUPLQHGZKHWKHURUQRWWKHVWDUWGDWHRIDPHGLFDWLRQ
QRQDQWLEDFWHULDOLVSULRUWRWKHILUVWGRVHRIVWXG\GUXJLWZLOOEHDVVXPHGWKDWWKH
PHGLFDWLRQZDVUHFHLYHGSULRUWRWKHILUVWGRVHRIVWXG\GUXJ
$QWLEDFWHULDO

0LVVLQJVWDUWGDWHVIRUDQWLEDFWHULDOVZLOOEHTXHULHGIRUDYDOXH,ILWFDQQRWEH
GHWHUPLQHGZKHWKHURUQRWWKHVWDUWGDWHRIDQDQWLEDFWHULDOLVSULRUWRWKHILUVWGRVHRI
VWXG\GUXJLWZLOOEHDVVXPHGWKDWWKHPHGLFDWLRQZDVUHFHLYHGSULRUWRWKHILUVWGRVH
RIVWXG\GUXJXQOHVVWKHLQGLFDWLRQQRWHVWKDWWKHPHGLFDWLRQZDVUHFHLYHGDIWHUWKH
ILUVWGRVHRIVWXG\GUXJ

6WRSGDWHIRUFRQ
PHGV
1RQ
$QWLEDFWHULDO
,ILWFDQQRWEHGHWHUPLQHGZKHWKHURUQRWWKHVWRSGDWHRIDPHGLFDWLRQQRQDQWLEDFWHULDOLV
DIWHUWKHILUVWGRVHRIVWXG\GUXJLWZLOOEHDVVXPHGWKDWWKHPHGLFDWLRQZDVUHFHLYHG
DIWHUWKHILUVWGRVHRIVWXG\GUXJ

$QWLEDFWHULDO

0LVVLQJVWRSGDWHVIRUDQWLEDFWHULDOVZLOOEHTXHULHGIRUDYDOXH,ILWFDQQRWEH
GHWHUPLQHGZKHWKHURUQRWWKHVWRSGDWHRIDQDQWLEDFWHULDOLVDIWHUWKHILUVWGRVHRI
VWXG\GUXJLWZLOOEHDVVXPHGWKDWWKHPHGLFDWLRQZDVUHFHLYHGDIWHUWKHILUVWGRVHRI
VWXG\GUXJXQOHVVWKHLQGLFDWLRQQRWHVWKDWWKHPHGLFDWLRQZDVUHFHLYHGSULRUWRWKH
ILUVWGRVHRIVWXG\GUXJ,ILWFDQQRWEHGHWHUPLQHGZKHWKHUWKHDQWLEDFWHULDOZDV
UHFHLYHGSULRUWRWKHDVVHVVPHQWRI(DUO\&OLQLFDO5HVSRQVHWKH(27DQGRUWKH37(
9LVLWWKHDQWLEDFWHULDOZLOOEHDVVXPHGWRKDYHEHHQUHFHLYHGWKURXJKWKH37(9LVLW




2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
'LUHFWLRQDOLW\RI:RUVW/DERUDWRU\3DUDPHWHUV
/DERUDWRU\
7HVW
3DUDPHWHU
:RUVW9DOXH
+HPDWRORJ\
+HPDWRFULW
/RZHVWYDOXH

5HGEORRGFHOOFRXQW
/RZHVWYDOXH

0HDQFHOOKHPRJORELQ
/RZHVWYDOXH

0HDQFHOOKHPRJORELQFRQFHQWUDWLRQ
/RZHVWYDOXH

+HPRJORELQ
/RZHVWYDOXH

0HDQFHOOYROXPH
/RZHVWYDOXH

:KLWHEORRGFHOOFRXQW
/RZHVWYDOXH

3ODWHOHWV
/RZHVWYDOXH

1HXWURSKLOV
/RZHVWYDOXH

/\PSKRF\WHV
/RZHVWYDOXH

0RQRF\WHV
/RZHVWYDOXH

(RVLQRSKLOV
+LJKHVWYDOXH

%DVRSKLOV
/RZHVWYDOXH
&KHPLVWU\
$OEXPLQ
/RZHVWYDOXH

$ONDOLQHSKRVSKDWDVH
+LJKHVWYDOXH

$ODQLQHDPLQRWUDQVIHUDVH$/76*37
+LJKHVWYDOXH

$P\ODVH
+LJKHVWYDOXH

$VSDUWDWHDPLQRWUDQVIHUDVH$676*27
+LJKHVWYDOXH

8UHD
+LJKHVWYDOXH

%LFDUERQDWH
/RZHVWYDOXH

&DOFLXP
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

&KROHVWHURO
+LJKHVWYDOXH

&KORULGH
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

&UHDWLQLQH
+LJKHVWYDOXH

&UHDWLQHNLQDVH&.
+LJKHVWYDOXH

*DPPDJOXWDP\OWUDQVSHSWLGDVH**7
+LJKHVWYDOXH

%ORRGJOXFRVH
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

/DFWDWHGHK\GURJHQDVH/'+
+LJKHVWYDOXH

/LSDVH
+LJKHVWYDOXH

0DJQHVLXP
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

3KRVSKDWH
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

3RWDVVLXP
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

6RGLXP
%RWKKLJKHVWYDOXHDQGORZHVWYDOXH

7RWDOELOLUXELQ
+LJKHVWYDOXH

7RWDOSURWHLQ
/RZHVWYDOXH

8ULFDFLG
+LJKHVWYDOXH
&RDJXODWLRQ
,QWHUQDWLRQDOQRUPDOL]HGUDWLR,15
+LJKHVWYDOXH



2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
$SSHQGL[
0RGLILHG'LYLVLRQRI0LFURELRORJ\DQG,QIHFWLRXV'LVHDVHV$GXOW
7R[LFLW\7DEOH
7KH'0,'$GXOW7R[LFLW\7DEOH129ZDVPRGLILHGWRH[FOXGHWKHFOLQLFDO
FRPSRQHQWRIWKHWR[LFLW\JUDGLQJEHFDXVHFOLQLFDOVLJQVDQGV\PSWRPVUHODWHGWRDEQRUPDO
ODERUDWRU\YDOXHVDUHQRWFROOHFWHGLQWKLVVWXG\,QDGGLWLRQ*UDGHZDVDGGHGWRWKHWDEOH
VRWKDWVKLIWVIURPQRUPDOFRXOGEHDQDO\]HG*UDGHVIRUHQ]\PHVZHUHPRGLILHGDV
LQGLFDWHGLQWKHWDEOHEHORZ
)RUWR[LFLW\JUDGHVEDVHGRQDPXOWLSOHRIWKH8/1WKHQRUPDOUDQJHIURPWKHFHQWUDO
ODERUDWRU\ZLOOEHDSSOLHG
)RUWR[LFLW\JUDGHVEDVHGRQIL[HGYDOXHVWKHJUDGHVZLOOEHDVVLJQHGUHJDUGOHVVRIWKH
QRUPDODFWXDOUDQJHYDOXHVIURPWKHFHQWUDOODERUDWRU\)RUH[DPSOHDKHPRJORELQYDOXHRI
JPG/ZLOOEHDVVLJQHGDJUDGHRIWR[LFLW\HYHQLIWKHORZHUOLPLWRIQRUPDOIURPWKH
ODERUDWRU\ZDVJPG/
+(0$72/2*<

*UDGH
*UDGH
*UDGH
*UDGH
*UDGH
+HPRJORELQJPG/
!




$EVROXWH1HXWURSKLO
&RXQWFRXQWPP
!




3ODWHOHWVFRXQWPP





:%&VFRXQWPP




!RU





2PDGDF\FOLQH37.
3DUDWHN3KDUPD//&
37.&$%3±9HUVLRQ
,1'
0$5
,1'

&RQILGHQWLDODQG3URSULHWDU\
3DJHRI
&+(0,675<

*UDGH
*UDGH
*UDGH
*UDGH
*UDGH
+\SRQDWUHPLDP(T/
!




+\SHUQDWUHPLDP(T/




!
+\SRNDOHPLDP(T/
!




+\SHUNDOHPLDP(T/




!
+\SRJO\FHPLDPJG/
t




+\SHUJO\FHPLDPJG/
QRQIDVWLQJDQGUHJDUGOHVV
RISULRUKLVWRU\RI
GLDEHWHV




!
+\SRFDOFHPLDPJG/
FRUUHFWHGIRUDOEXPLQ
!




+\SHUFDOFHPLDPJG/
FRUUHFWIRUDOEXPLQ
d



!
+\SRPDJQHVHPLDP(T/
!




+\SRSKRVSKDWHPLD
PJG/
t




+\SHUELOLUXELQHPLDWRWDO
ELOLUXELQ
î8/1
î8/1
!
î8/1
!î8/1
!î8/1
8UHD
î8/1
î8/1
!î8/1
!î8/1
!î8/1
+\SHUXULFHPLDXULFDFLG
PJG/

±
±
±
!
&UHDWLQLQH
î8/1
î8/1
!
î8/1
!î8/1
!î8/1
7KH'0,'WR[LFLW\WDEOHUHSRUWVK\SHUJO\FHPLDGHWHFWHGLQQRQIDVWLQJVSHFLPHQVREWDLQHGIURPVXEMHFWV
ZLWKQRSULRUGLDEHWHV

(1=<0(6

*UDGH
*UDGH
*UDGH
*UDGH
*UDGH
$676*27
î8/1
î8/1
!î8/1
!î8/1
!î8/1
$/76*37
î8/1
î8/1
!î8/1
!î8/1
!î8/1
**7
î8/1
î8/1
!î8/1
!î8/1
!î8/1
$ONDOLQH
3KRVSKDWDVH
î8/1
î8/1
!î8/1
!î8/1
!î8/1
$P\ODVH
î8/1
î8/1
!î8/1
!î8/1
!î8/1
/LSDVH
î8/1
î8/1
!î8/1
!î8/1
!î8/1
