Conditions: Medullary Thyroid Carcinoma
Keywords: Vandetanib Bortezomib Medullary Thyroid Proteasome Inhibitor Cancer Solid Tumor Thyroid Cancer Medullary Thyroid Cancer
Allocation: RANDOMIZED | Intervention model: PARALLEL
Enrollment: 22
Healthy volunteers: no

Brief summary:
Background:

* The combination of anti-cancer drugs vandetanib (given orally) and bortezomib (given intravenously) has not been used in humans. However, both drugs have been studied separately. Bortezomib has been approved by the U.S. Food and Drug Administration (FDA) for treating multiple myeloma and mantle cell lymphoma, while vandetanib is still under investigation pending FDA approval.
* Both bortezomib and vandetanib are under investigation for use in treating certain kinds of cancer. Researchers hope that the combination of these two drugs will be more effective than either of them alone.

Objectives:

* To determine if the combination of vandetanib and bortezomib will decrease the amount of the cancer and, if it does, to determine how long the response will last.
* To determine any side effects that may occur with this combination of treatments.
* To determine what doses of each drug are well tolerated and safe when given together.
* To study genetic mutations in tumors to better understand how tumors grow and how these drugs interact with the tumor.

Eligibility:

* Patients 18 years of age and older with solid tumors that cannot be surgically removed and have either recurred or shown further growth. The tumor(s) must be able to be evaluated by X-ray, MRI (magnetic resonance imaging), and CT (computerized tomography) scanning.
* Patients who have been diagnosed with medullary thyroid cancer will participate in Phase II of the study.

Design:

* Tumor samples may be taken at the start of the study for research purposes.
* Phase I: Patient groups will be treated on an outpatient basis with vandetanib and bortezomib, given at increasing doses over four different levels to determine the maximum tolerated dose calculated by height and weight:
* Doses will be given on Days 1, 4, 8, and 11 for each 28-day cycle.
* Two additional levels (Level 1A and Level 1B) may be included in the study, depending on side effects at various levels.
* Phase II: Patients with medullary thyroid cancer will be divided into two groups, with two patients in Group A for every one patient in Group B. No placebo will be involved in this study.
* Group A: Patients will be treated with vandetanib and bortezomib at the maximally tolerated dose of the Phase I study.
* Group B: Patients will be treated with bortezomib alone.
* A second tumor sample may be taken. In patients with thyroid cancer, the second biopsy will be done at the 6-week evaluation (approximately 42 days after beginning). In patients with cancer other than thyroid cancer, the second biopsy will be obtained on Day 4 of either the first or second cycle, after the bortezomib infusion.
* The effects of the drugs will be studied through blood samples and CT scans taken during and after various drug cycles.

Detailed description:
Background:

* Vandetanib (CAPRELSA; ZD6474) potently inhibits vascular endothelial growth factor receptor-2 (VEGFR-2), and shows additional inhibitory activity at sub-micromolar concentrations against the Rearranged during Transfection (RET) receptor, Flt-4 and EGF receptor tyrosine kinases.
* Clinical trials have shown that vandetanib is active against medullary thyroid carcinomas (MTCs), but the activity is characterized by partial responses of variable duration, underscoring the need to develop active combinatorial regimens.
* Bortezomib (PS-341, Velcade ), a proteasome inhibitor, has been reported to have several putative mechanisms of action and it is likely that its toxicity is mediated by affecting more than one pathway or target. Bortezomib is reported to inhibit the nuclear factor kappa-light-chain-enhancer of activated B cells (NF-kappaB) pathway and regulate NF-kappaB-dependent expression of several other inhibitors of apoptosis.
* In vitro studies have shown bortezomib to be active against a broad range of thyroid cancer cell lines. Given this activity of bortezomib and the role of the proteasome in regulating diverse cellular pathways, this study proposes to combine bortezomib with vandetanib to treat patients with advanced solid tumors with a focus on patients with MTC.

Objectives:

* To assess the activity of vandetanib plus bortezomib in adults with MTC, using Response Evaluation Criteria in Solid Tumors (RECIST) and tumor biomarkers including carcinoembryonic antigen (CEA) and calcitonin as endpoints.
* To assess the safety and tolerance of vandetanib plus bortezomib in dose-seeking cohorts.
* To compare the combination bortezomib plus vandetanib versus vandetanib alone in adults with MTC by assessing the response rate and progression-free survival
* In exploratory analyses: (a) examine the correlation between genotype and response to therapy in patients with MTC, (b) examine the extent, if any, of rearranged during transfection (RET) inhibition in patients with MTC following the administration of vandetanib; and (c) examine the effect, if any, of bortezomib on microtubules.

Eligibility:

* Adults age 18 and older with unresectable, recurrent or metastatic solid tumors, including MTC.
* Disease must be evaluable by RECIST.

Design:

* Phase I dose-escalation study followed by randomized phase II trial.
* Maximum total number for planned enrollment: 117 - Dose-seeking cohorts of three to 6 patients until maximum tolerated dose (MTD)/dose limiting toxicity (DLT) reached (up to 24 patients) followed by a randomized phase II trial comparing the activity of the combination of bortezomib plus vandetanib with vandetanib alone (2:1 randomization 62 plus 31 equals 93 patients).
* The MTD and DLT will be determined based on toxicities during the first eight weeks of combined therapy.
* Cycle length will be four weeks. Response will be determined by RECIST every 12 weeks.

Arms:
arm 1: Patients will be treated with vandetanib and bortezomib to find the maximally tolerated dose arm 2: Patients will be treated with vandetanib alone. arm 3: Patients will be treated with vandetanib and bortezomib at the maximally tolerated dose (MTD) of the Phase I study

Interventions: intervention 1: Bortezomib intervention 2: Vandetanib
Intervention descriptions: intervention 1: This study is designed to assess the safety, tolerance and activity of daily oral vandetanib and bortezomib on days 1, 4, 8 \& 11 every 28 days in adults intervention 2: This study is designed to assess the safety, tolerance and activity of daily oral vandetanib and bortezomib on days 1, 4, 8 \& 11 every 28 days in adults

Protocol document:
Prot_000.pdf: 
$PHQGPHQW
3URWRFRO1XPEHU
&0
3ULQFLSDO,QYHVWLJDWRU 5DYL0DGDQ
1&,
*0%

PDGDQU#PDLOQLKJRY
1,+(PSOR\HH1DPH,QVWLWXWH%UDQFK7HOHSKRQHDQGHPDLO
5HIHUHQFH1XPEHU

3URWRFRO7LWOH
$7DUJHWHG3KDVH,,,WULDORI='9DQGHWDQLE&$35(/6$3OXVWKH3URWHDVRPH,QKLELWRU%RUWH]RPLE9HOFDGHLQ$GXOWVZLWK
6ROLG7XPRUVZLWKD)RFXVRQ+HUHGLWDU\RU6SRUDGLF/RFDOO\$GYDQFHGRU0HWDVWDWLF0HGXOODU\7K\URLG&DQFHU07&
6,*1$785(6
3ULQFLSDO,QYHVWLJDWRU
7LWR)RMRDSSOLHGVLJQDWXUHRQ30('7
5DYL0DGDQDSSOLHGVLJQDWXUHRQ30('7
$FFRXQWDEOH,QYHVWLJDWRU
:LOOLDP'DKXWDSSOLHGVLJQDWXUHRQ30('7
%UDQFK&KLHI&&'HSDUWPHQW+HDG
-DPHV/*XOOH\0'3K'DSSOLHGVLJQDWXUHRQ30('7
0HGLFDO$GYLVRU\,QYHVWLJDWRULIDSSOLFDEOH
1$
/HDG$VVRFLDWH,QYHVWLJDWRUVLJQDWXUH
1$
5HIHUUDO&RQWDFWVLJQDWXUHV
1$
$VVRFLDWH,QYHVWLJDWRUVVLJQDWXUHV
1$
)RU,QVWLWXWH&HQWHU6FLHQWLILF5HYLHZ&RPPLWWHH
1$
2WKHU,&&OLQLFDO'LUHFWRUVLJQDWXUHV
1$
$33529$/6
,5%&KDLU
0LFKDHO+DPLOWRQDSSOLHGVLJQDWXUHRQ30('7
&OLQLFDO'LUHFWRU
0DUN8GH\DSSOLHGVLJQDWXUHRQ$0('7
&21&855(1&(
2363URWRFRO6SHFLDOLVW
6LJQDWXUH3ULQW1DPH'DWH
6LJQDWXUHVLJQLILHVWKDWLQYHVWLJDWRUVRQWKLVSURWRFROKDYHEHHQLQIRUPHGWKDWWKHFROOHFWLRQDQGXVHRISHUVRQDOO\LGHQWLILDEOHLQIRUPDWLRQDW
WKH1,+DUHPDLQWDLQHGLQDV\VWHPRIUHFRUGJRYHUQHGXQGHUSURYLVLRQVRIWKH3ULYDF\$FWRI7KHLQIRUPDWLRQSURYLGHGLVPDQGDWRU\IRU
HPSOR\HHVRIWKH1,+WRSHUIRUPWKHLUDVVLJQHGGXWLHVDVUHODWHGWRWKHDGPLQLVWUDWLRQDQGUHSRUWLQJRILQWUDPXUDOUHVHDUFKSURWRFROVDQG
XVHGVROHO\IRUWKRVHSXUSRVHV4XHVWLRQVPD\EHDGGUHVVHGWRWKH3URWUDN6\VWHP2ZQHU
,KDYHUHYLHZHGWKLVUHVHDUFKSURMHFWDQGFRQVLGHUHGWKH1,+3ROLF\IRU,QFOXVLRQRI:RPHQDQG0LQRULWLHVLQ&OLQLFDO5HVHDUFK7DNLQJLQWR
DFFRXQWWKHRYHUDOOLPSDFWWKDWWKHSURMHFWFRXOGKDYHRQWKHUHVHDUFKILHOGLQYROYHG,IHHOWKHFXUUHQWSODQVDGHTXDWHO\LQFOXGHVERWKVH[
JHQGHUPLQRULWLHVFKLOGUHQDQGVSHFLDOSRSXODWLRQVDVDSSURSULDWH7KHFXUUHQWHQUROOPHQWLVLQOLQHZLWKWKHSODQQHGHQUROOPHQWUHSRUWIRU
LQFOXVLRQRILQGLYLGXDOVRQWKHEDVLVRIWKHLUVH[JHQGHUUDFHDQGHWKQLFLW\DQGLVDSSURSULDWHDQGRIVFLHQWLILFDQGWHFKQLFDOPHULW
,5%0HHWLQJ'DWH
([SHGLWHG
'(&&OHDUDQFH'DWH

3URWRFRO9HUVLRQ'DWH
&%RQGV%HHNHQ$00


9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
$7DUJHWHG3KDVH,,,WULDORI='9DQGHWDQLE&$35(/6$SOXVWKH
SURWHDVRPHLQKLELWRUERUWH]RPLE9HOFDGHLQDGXOWVZLWKVROLGWXPRUV
ZLWKDIRFXVRQKHUHGLWDU\RUVSRUDGLFORFDOO\DGYDQFHGRUPHWDVWDWLF
PHGXOODU\WK\URLGFDQFHU07&
$EEUHYLDWHG7LWOH
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE
3ULQFLSDO,QYHVWLJDWRU
5DYL0DGDQ 0'*0%&&51&,
%XLOGLQJ5RRP
%HWKHVGD0'
3KRQH
PDGDQU#PDLOQLKJRY
/HDG$VVRFLDWH ,QYHVWLJDWRU
6DPXHO$:HOOV-U0'6SHFLDO9ROXQWHHU &&51&,
$VVRFLDWH,QYHVWLJDWRUVDQG$IILOLDWLRQV
0DXUHHQ(GJHUO\512&'&&51&,
0DULD0HULQR0'/DERUDWRU\RI3DWKRORJ\&&51&,
:LOOLDP'RXJ)LJJ3KDUP'*0%&&51&,
3DXO0HOW]HU0'32%&&51&,
6HWK6WHLQEHUJ3K'%'06&&51&,
'DYH.RKOHU3KDUP'&&3KDUPDF\1,+
7LWR)RMR0'3K'&ROXPELD8QLYHUVLW\
'HQRWHVLQYHVWLJDWRUVQRWLQYROYHGLQFOLQLFDOFDUHRUFRQVHQWLQJRISDWLHQWV
,QYHVWLJDWLRQDO$JHQW
9DQGHWDQLE&$35(/6$='16&
,QYHVWLJDWLRQDO$JHQW
%RUWH]RPLE9HOFDGH3616&
,1'QXPEHU

7KLVVWXG\ZLOOEHILOHGXQGHUWKH&7(3 ,1'IRUERUWH]RPLEDQGFURVVILOHGWRWKH
YDQGHWDQLE,1'KHOGE\$VWUD=HQHFD
'DYH.RKOHU3KDUP'1,+&OLQLFDO&HQWHU3KDUPDF\'HSDUWPHQW
%OGJ5RRP1&HQWHU'ULYH%HWKHVGD0'
GNRKOHU#PDLOQLKJRY
5HIHUUDO&RQWDFWV 0DXUHHQ(GJHUO\51



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
35(&,6
%DFNJURXQG
x
9DQGHWDQLE&$35(/6$='SRWHQWO\LQKLELWVYDVFXODUHQGRWKHOLDOJURZWKIDFWRU
UHFHSWRU9(*)5DQGVKRZVDGGLWLRQDOLQKLELWRU\DFWLYLW\DWVXEPLFURPRODU
FRQFHQWUDWLRQVDJDLQVWWKH5(DUUDQJHGGXULQJ7UDQVIHFWLRQ5(7UHFHSWRU)OWDQG(*)
UHFHSWRUW\URVLQHNLQDVHV
x
&OLQLFDOWULDOVKDYHVKRZQWKDWYDQGHWDQLELVDFWLYHDJDLQVWPHGXOODU\WK\URLGFDUFLQRPDV
07&VEXWWKHDFWLYLW\LVFKDUDFWHUL]HGE\SDUWLDOUHVSRQVHVRIYDULDEOHGXUDWLRQ
XQGHUVFRULQJWKHQHHGWRGHYHORSDFWLYHFRPELQDWRULDOUHJLPHQV
x
%RUWH]RPLE369HOFDGHDSURWHDVRPHLQKLELWRUKDVEHHQUHSRUWHGWRKDYHVHYHUDO
SXWDWLYHPHFKDQLVPVRIDFWLRQDQGLWLVOLNHO\WKDWLWVWR[FLWL\LVPHGLDWHGE\DIIHFWLQJPRUH
WKDQRQHSDWKZD\RUWDUJHW%RUWH]RPLELVUHSRUWHGWRLQKLELWWKH1)N%SDWKZD\DQGUHJXODWH
1)N%GHSHQGHQWH[SUHVVLRQRIVHYHUDORWKHULQKLELWRUVRIDSRSWRVLV
x
,QYLWUR VWXGLHVKDYHVKRZQERUWH]RPLEWREHDFWLYHDJDLQVWDEURDGUDQJHRIWK\URLGFDQFHU
FHOOOLQHV*LYHQWKLVDFWLYLW\RIERUWH]RPLEDQGWKHUROHRIWKHSURWHDVRPHLQUHJXODWLQJ
GLYHUVHFHOOXODUSDWKZD\VWKLVVWXG\SURSRVHVWRFRPELQHERUWH]RPLEZLWKYDQGHWDQLEWR
WUHDWSDWLHQWVZLWKDGYDQFHGVROLGWXPRUVZLWKDIRFXVRQSDWLHQWVZLWK07&
2EMHFWLYHV
x
7RDVVHVVWKHDFWLYLW\RIYDQGHWDQLESOXVERUWH]RPLELQDGXOWVZLWK07&XVLQJ5(&,67DQG
WXPRUELRPDUNHUVLQFOXGLQJ&($DQGFDOFLWRQLQDVHQGSRLQWV
x
7RDVVHVVWKHVDIHW\DQGWROHUDQFHRIYDQGHWDQLESOXVERUWH]RPLELQGRVHVHHNLQJFRKRUWV
x
7RFRPSDUHWKHFRPELQDWLRQERUWH]RPLESOXVYDQGHWDQLEYHUVXVYDQGHWDQLEDORQHLQDGXOWV
ZLWK07&E\DVVHVVLQJWKHUHVSRQVHUDWHDQGSURJUHVVLRQIUHHVXUYLYDO
x
,QH[SORUDWRU\DQDO\VHVDH[DPLQHWKHFRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWR
WKHUDS\LQSDWLHQWVZLWK07&EH[DPLQHWKHH[WHQWLIDQ\RI5(7LQKLELWLRQLQ SDWLHQWV
ZLWK07&IROORZLQJWKHDGPLQLVWUDWLRQRIYDQGHWDQLEDQGFH[DPLQHWKHHIIHFWLIDQ\RI
ERUWH]RPLERQPLFURWXEXOHV
(OLJLELOLW\
x
$GXOWVDJHDQGROGHUZLWKXQUHVHFWDEOHUHFXUUHQWRUPHWDVWDWLFVROLGWXPRUVLQFOXGLQJ
07&
x
'LVHDVHPXVWEHHYDOXDEOHE\5(&,67
'HVLJQ
x
3KDVH,GRVHHVFDODWLRQVWXG\IROORZHGE\UDQGRPL]HGSKDVH,,WULDO
x
0D[LPXPWRWDOQXPEHUIRUSODQQHGHQUROOPHQW 'RVHVHHNLQJFRKRUWVRIWKUHHWR
SDWLHQWVXQWLO07''/7UHDFKHG>XSWRSDWLHQWV@IROORZHGE\DUDQGRPL]HGSKDVH,,WULDO
FRPSDULQJWKHDFWLYLW\RIWKHFRPELQDWLRQRIERUWH]RPLESOXVYDQGHWDQLEZLWKYDQGHWDQLE
DORQH>UDQGRPL]DWLRQ SDWLHQWV@
x
7KH07'DQG'/7ZLOOEHGHWHUPLQHGEDVHGRQWR[LFLWLHVGXULQJWKHILUVWHLJKWZHHNVRI
FRPELQHGWKHUDS\
x
&\FOHOHQJWKZLOOEHIRXUZHHNV5HVSRQVHZLOOEHGHWHUPLQHGE\5(&,67HYHU\ZHHNV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7$%/(2)&217(176
35(&,6  
7$%/(2)&217(176  
 
,1752'8&7,21  
 
6WXG\2EMHFWLYHV  
 
3ULPDU\2EMHFWLYH  
 
6HFRQGDU\2EMHFWLYHV  
 
%DFNJURXQGDQG5DWLRQDOH   
 
7K\URLG&DUFLQRPD  
 
0HGXOODU\7K\URLG&DUFLQRPD*HQHWLFVRI0(1DQG07&  
 
%LRPDUNHUVRI07&   
 
9DQGHWDQLE&$35(/6$=')LJXUH  
 
%RUWH]RPLE9HOFDGH36   
 
6WXG\5DWLRQDOH   
 
(/,*,%,/,7<$66(660(17$1'(152//0(17  
 
(OLJLELOLW\&ULWHULD  
 
,QFOXVLRQ&ULWHULD  
 
([FOXVLRQ&ULWHULD  
 
5HVHDUFK(OLJLELOLW\(YDOXDWLRQ  
 
3DWLHQW5HJLVWUDWLRQDQG7UHDWPHQW$VVLJQPHQW  
 
678'<,03/(0(17$7,21  
 
6WXG\'HVLJQ   
 
'RVHHVFDODWLRQVFKHPD  
 
,QWUDSDWLHQWGRVHHVFDODWLRQ  
 
'HWHUPLQDWLRQRIPD[LPXPWROHUDWHGGRVH07'DQGGRVHOLPLWLQJWR[LFLW\
'/7   
 
'HILQLWLRQRI0D[LPXP7ROHUDWHG'RVH07'   
 
'HILQLWLRQRI'RVH/LPLWLQJ7R[LFW\'/7  
 
+HPDWRORJLF'RVH/LPLWLQJ7R[LFLW\+'/7   
 
1RQ+HPDWRORJLF'RVH/LPLWLQJ7R[LFLW\1+'/7   
 
'RVHOLPLWLQJK\SHUWHQVLRQ  
 
'UXJ$GPLQLVWUDWLRQ  
 
9DQGHWDQLE  
 
%RUWH]RPLE  
 
*XLGHOLQHVIRUGRVHPRGLILFDWLRQVDQGPDQDJHPHQWRIWR[LFLWLHVIROORZLQJWKH
ILUVWHLJKWZHHNVRIWKHUDS\   
 
&XWDQHRXV7R[LFLW\  
 
*DVWURLQWHVWLQDO*,7R[LFLW\ 1DXVHD9RPLWLQJ  
 
*DVWURLQWHVWLQDO*,7R[LFLW\± 'LDUUKHD   



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 
+\SHUWHQVLRQ   
 
7R[LFLWLHVRWKHUWKDQFXWDQHRXVJDVWURLQWHVWLQDOK\SHUWHQVLRQRU47F
SURORQJDWLRQ  
 
47FSURORQJDWLRQ   
 
3KDVH,,&RKRUW  
 
&RUUHODWLYH6WXGLHV   
 
([SORUDWRU\DQDO\VHVLQSDWLHQWVZLWK07&DQGWKRVHZLWKDGLDJQRVLVRWKHU
WKDQ07&VHH$SSHQGL[$  
 
*HQHH[SUHVVLRQE\PLFURDUUD\  
 
7XPRU6DPSOHDFTXLVLWLRQ  
 
3KDUPDFRNLQHWLFVRIYDQGHWDQLEDQGERUWH]RPLE  
 
6WXG\&DOHQGDU   
 
6WXG\&DOHQGDUIRU&RPELQHG9DQGHWDQLEDQG%RUWH]RPLE7KHUDS\   
 
6WXG\&DOHQGDUIRU9DQGHWDQLE$ORQH   
 
&RQFXUUHQW7KHUDSLHV   
 
2WKHU$QWLFDQFHU$JHQWV  
 
&RPSOHPHQWDU\DQG$OWHUQDWLYH7KHUDSLHV  
 
7K\URLG5HSODFHPHQW7KHUDS\  
 
$QWL+\SHUWHQVLYH7KHUDS\  
 
$JHQWVWKDW3URORQJWKH47F  
 
6XUJLFDO*XLGHOLQHV   
 
5DGLDWLRQ7KHUDS\*XLGHOLQHV  
 
2II7UHDWPHQW&ULWHULD   
 
2II7UHDWPHQW(YDOXDWLRQ   
 
3RVWWUHDWPHQW)ROORZ8S  
 
2II6WXG\&ULWHULD  
 
6833257,9(&$5(,668(6  
 
&XWDQHRXV  
 
3UHYHQWLYHPHDVXUHVIRUFXWDQHRXVWR[LFLW\  
 
6XJJHVWHGUHJLPHQVIRUWKHPDQDJHPHQWRIFXWDQHRXVWR[LFLWLHV  
 
*DVWURLQWHVWLQDO*, 1DXVHD9RPLWLQJ   
 
3UHYHQWLYHPHDVXUHVIRUQDXVHDDQGRUYRPLWLQJ  
 
6XJJHVWHGUHJLPHQIRUWKHPDQDJHPHQWRIQDXVHDDQGRUYRPLWLQJ   
 
*DVWURLQWHVWLQDO*, 'LDUUKHD   
 
3UHYHQWLYHPHDVXUHVIRUGLDUUKHD  
 
6XJJHVWHGUHJLPHQIRUWKHPDQDJHPHQWRIGLDUUKHD  
 
0DQDJHPHQWRI07&5HODWHG'LDUUKHD  
 
+\SHUWHQVLRQ   
 
3UHYHQWLYHPHDVXUHVIRUK\SHUWHQVLRQ  
 
6XJJHVWHGUHJLPHQIRUWKHPDQDJHPHQWRIK\SHUWHQVLRQ   



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 
6LQJOH$JHQW$QWL+\SHUWHQVLYH7KHUDS\  
 
'$7$&2//(&7,21$1'(9$/8$7,21  
 
'DWD&ROOHFWLRQ  
 
6RXUFH'RFXPHQWV  
 
&DVH5HSRUW)RUPV  
 
'DWD4XDOLW\$VVXUDQFH  
 
5HVSRQVH&ULWHULD   
 
5(&,67   
 
%LRPDUNHU5HVSRQVH&ULWHULD   
 
&OLQLFDO5HVSRQVH&ULWHULD6\PSWRPDWLF'LDUUKHD  
 
6WDWLVWLFVDQG)HDVLELOLW\  
 
0XOWLLQVWLWXWLRQDOJXLGHOLQHV   
 
'DWDDQG6DIHW\0RQLWRULQJ3ODQ  
 
+80$168%-(&76 3527(&7,21  
 
5DWLRQDOHIRU6XEMHFW6HOHFWLRQ  
 
3DUWLFLSDWLRQRI&KLOGUHQ   
 
(YDOXDWLRQRI%HQHILWVDQG5LVNV'LVFRPIRUWV   
 
5LVNV%HQHILWV$QDO\VLV  
 
,QIRUPHG&RQVHQW$VVHQW3URFHVVDQG'RFXPHQWDWLRQ   
 
6$)(7<5(3257,1*5(48,5(0(176'$7$$1'6$)(7<
021,725,1*3/$1  
 
'HILQLWLRQV  
 
$GYHUVH(YHQW   
 
6XVSHFWHGDGYHUVHUHDFWLRQ  
 
8QH[SHFWHGDGYHUVHUHDFWLRQ  
 
6HULRXV  
 
6HULRXV$GYHUVH(YHQW   
 
'LVDELOLW\   
 
/LIHWKUHDWHQLQJDGYHUVHGUXJH[SHULHQFH  
 
3URWRFRO'HYLDWLRQ1,+'HILQLWLRQ   
 
1RQFRPSOLDQFH1,+'HILQLWLRQ  
 
8QDQWLFLSDWHG3UREOHP  
 
$GYHUVH(YHQW5HSRUWLQJ&ULWHULD  
 
1&,,5%5HSRUWLQJ  
 
1&,,5%([SHGLWHG5HSRUWLQJRI8QDQWLFLSDWHG3UREOHPVDQG'HDWKV  
 
1&,,5%5HTXLUHPHQWVIRU3,5HSRUWLQJDW&RQWLQXLQJ5HYLHZ  
 
1&,,5%5HSRUWLQJRI,1'6DIHW\5HSRUWV  
 
,1'63216255(3257,1*&5,7(5,$$'9(56((9(176/,67
$1'5(3257,1*5(48,5(0(176  



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 
&RPSUHKHQVLYH$GYHUVH(YHQWVDQG3RWHQWLDO5LVNV&$(35/LVWV   
 
$GYHUVH(YHQW/LVWVIRU9DQGHWDQLE&$35(/6$='   
 
([SHGLWHG$GYHUVH(YHQW5HSRUWLQJ  
 
5RXWLQH$GYHUVH(YHQW5HSRUWLQJ  
 
6HFRQGDU\$0/0'6   
 
5RXWLQHHYHQWVWKDWGRQRWQHHGWREHUHFRUGHGLQ&'  
 
&ROODERUDWLYH$JUHHPHQW   
 
3+$50$&(87,&$/$1',19(67,*$7,21$/'(9,&(
,1)250$7,21  
 
9DQGHWDQLE  
 
&KHPLFDO,QIRUPDWLRQ  
 
0HFKDQLVPRI$FWLRQ  
 
6RXUFHRI9DQGHWDQLE  
 
)RUPXODWLRQRI9DQGHWDQLE   
 
6WRUDJHDQG6WDELOLW\   
 
9DQGHWDQLE$GPLQLVWUDWLRQ   
 
9DQGHWDQLE7R[LFLW\3URILOH  
 
%RUWH]RPLE9HOFDGH3616&  
 
0HFKDQLVPRIDFWLRQ   
 
3KDUPDFRNLQHWLFV  
 
+RZ6XSSOLHG  
 
%RUWH]RPLEDGPLQLVWUDWLRQ  
 
%RUWH]RPLEWR[LFLW\SURILOH   
 
5()(5(1&(6  
 
$33(1',;$/$%25$725<0(7+2'2/2*<  
 
$33(1',;%3$7,(17',$5<  
 
$33(1',;&0(',&$7,216.12:172352/21* 7+(47
,17(59$/$1'25,1'8&(7256$'(6'(32,17(67'3  



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

,1752'8&7,21

6WXG\2EMHFWLYHV

3ULPDU\2EMHFWLYH
 3KDVH,7RDVVHVVWKHVDIHW\DQGWROHUDQFHRIGDLO\RUDOYDQGHWDQLEDQGERUWH]RPLERQ
GD\VDQGHYHU\GD\VVFKHGXOH LQ DGXOWVZLWKVROLGWXPRUVUHFXUUHQW
PHWDVWDWLFRUSULPDU\XQUHVHFWDEOHGXULQJGRVHHVFDODWLRQVLQRUGHUWRHVWDEOLVKWKH
RSWLPDOGRVHVUHFRPPHQGSKDVH,,GRVHVRIWKHGUXJFRPELQDWLRQLQSDWLHQWVZLWK
ORFDOO\DGYDQFHGRUPHWDVWDWLFFDQFHULQFOXGLQJ07&
 3KDVH,,7RGHWHUPLQHWKHWXPRUUHVSRQVHUDWH55E\5(&,67LQDGXOWVZLWKD
GLDJQRVLVRI07&WUHDWHGZLWKGDLO\RUDOYDQGHWDQLEDQGERUWH]RPLERQGD\VDQG
HYHU\GD\VVFKHGXOH

6HFRQGDU\2EMHFWLYHV
 7RFRPSDUHWKHUHVSRQVHUDWHDQGSURJUHVVLRQIUHHVXUYLYDORIDGXOWVZLWKDGLDJQRVLVRI
07&WUHDWHGZLWKHLWKHURIWZRUHJLPHQVGDLO\RUDOYDQGHWDQLEDQGERUWH]RPLERQ
GD\VDQGHYHU\GD\VVFKHGXOHRUGDLO\RUDOYDQGHWDQLE
 7RDVVHVVWKHDFWLYLW\RIGDLO\RUDOYDQGHWDQLEDQGERUWH]RPLERQGD\VDQG
HYHU\GD\VVFKHGXOHLQDGXOWVZLWKDGLDJQRVLVRI KHUHGLWDU\07&E\PHDVXULQJ
L &KDQJHLQWXPRUELRPDUNHUVFDOFLWRQLQDQG&($FRPSDUHGWREDVHOLQH
LL &KDQJHLQWXPRUUHODWHGGLDUUKHDIUHTXHQF\DQGFRQVLVWHQF\FRPSDUHGWREDVHOLQH
LLL 'HWHUPLQHWKHSKDUPDFRNLQHWLFV3.RIERUWH]RPLEDWWKHVWDUWRIWUHDWPHQWDQGDIWHU
YDQGHWDQLEKDVUHDFKHGVWHDG\VWDWH
LY 'HWHUPLQHWKH3.RIYDQGHWDQLEDWVWHDG\VWDWHEHIRUHDQGDIWHUERUWH]RPLE
 &RQGXFWH[SORUDWRU\DQDO\VHVDVIROORZV
L 3HUIRUP5(7JHQHPXWDWLRQDODQDO\VLVLQWXPRUWLVVXHREWDLQHGIURPSDWLHQWVZLWK07&
SULRUWRRUDWWKHWLPHRIHQUROOPHQWDQGLQSHULSKHUDOEORRGPRQRQXFOHDUFHOOVREWDLQHG
SULRUWRWUHDWPHQWDQGH[DPLQHWKHFRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWR WKHUDS\
6HH$SSHQGL[$
LL ,QSDWLHQWVZLWK07&ZKRFRQVHQWWRWZRELRSVLHVRIDVLWHRIGLVHDVHWKDWLVDFFHVVLEOH
ZLWKRXWULVNWRWKHSDWLHQWSHUIRUPDQH[SORUDWRU\DQDO\VLVWRH[DPLQHWKHH[WHQWRI5(7
LQKLELWLRQDQLPSRUWDQWSKDUPDFRG\QDPLFHQGSRLQWQRW\HWH[SORUHGLQDQ\FOLQLFDOWULDO
,QWKHVHSDWLHQWVDELRSV\ZRXOGEHREWDLQHGSULRUWRWKHVWDUWRIWKHUDS\ZLWKWKHVHFRQG
ELRSV\REWDLQHGDIWHUDWOHDVWGD\VRIYDQGHWDQLEDGPLQLVWUDWLRQ6HH$SSHQGL[$
LLL ,QSDWLHQWVZLWKDGLDJQRVLVRWKHUWKDQ07&ZKRFRQVHQWWRWZRELRSVLHVRIDVLWHRI
GLVHDVHWKDWLVDFFHVVLEOHZLWKRXWULVNWRWKHSDWLHQWSHUIRUPDELRSV\SULRUWRWKHVWDUWRI
WKHUDS\DQGDVHFRQGELRSV\DIWHUWKHGD\DGPLQLVWUDWLRQRIERUWH]RPLELQF\FOHRU
WRH[DPLQHWKHFKDQJHVLQPLFURWXEXOHVWDELOL]DWLRQ7KHODWWHUZRXOGSURYLGHHYLGHQFH
VXSSRUWLQJWKHWKHVLVWKDWPLFURWXEXOHVWDELOL]DWLRQRFFXUVIROORZLQJERUWH]RPLE
DGPLQLVWUDWLRQDQGDOVRSURYLGHSKDUPDFRG\QDPLFHYLGHQFHRIDQHIIHFWRIERUWH]RPLE
RQWKHWXPRU6HH$SSHQGL[$
LY $VVHVVWKHH[SUHVVLRQDQGDFWLYDWLRQRI5(7(*)50$3.DQG9(*)5E\
LPPXQRKLVWRFKHPLVWU\DQGRULPPXQREORWWLQJLQWLVVXHREWDLQHGSULRUWRRUDWWKHWLPHRI
HQUROOPHQWRQWKLVSURWRFRODQGH[DPLQHWKHFRUUHODWLRQEHWZHHQH[SUHVVLRQRIWKHVH
SURWHLQVDQGUHVSRQVHWRWKHUDS\6HH$SSHQGL[$



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
Y $VVHVVJHQHH[SUHVVLRQE\PLFURDUUD\LQWXPRUELRSVLHVREWDLQHGSULRUWRDQGGXULQJ
WUHDWPHQWZLWKYDQGHWDQLEDQGERUWH]RPLE

%DFNJURXQGDQG5DWLRQDOH

7K\URLG&DUFLQRPD
2YHUWKHODVWGHFDGHWKHEDVLFDQGFOLQLFDOUHVHDUFKRIWK\URLGFDQFHUKDVDWWUDFWHGLQFUHDVLQJ
LQWHUHVWVLQFHWKHLQFLGHQFHRIWK\URLGFDQFHUKDVLQFUHDVHGDWDUDWHPRUHUDSLGWKDQWKDWRIDQ\
VROLGRUJDQPDOLJQDQF\7KHUHKDVDOVREHHQDQLQFUHDVHLQWKHLQFLGHQFHRIWK\URLGFDQFHUGHDWKV
H[FHHGHGRQO\E\GHDWKVGXHWRFDQFHURIWKHOLYHUDQGLQWUDKHSDWLFELOHGXFWV)LJXUH,Q
WKHUHZHUHDQHVWLPDWHGGHDWKVGXHWRWK\URLGFDQFHU
7KHLQFUHDVHGLQFLGHQFHLVSULPDULO\RIWKHSDSLOODU\WK\URLGFDUFLQRPD37&KLVWRORJLF
VXEW\SH7KHUHDVRQVIRUWKHLQFUHDVHGLQFLGHQFHDUHXQNQRZQKRZHYHULWKDVEHHQVXJJHVWHG
WKDWLWLVGXHWRHQKDQFHGVFUHHQLQJIRUWK\URLGQRGXOHVUHVXOWLQJLQPRUHIUHTXHQWGHWHFWLRQRI
VPDOOHDUO\VWDJH37&V2WKHULQYHVWLJDWRUVKRZHYHUKDYHHYLGHQFHWKDWWKHLQFLGHQFHRI
ODUJHUWK\URLGWXPRUVKDVDOVRLQFUHDVHG6XSSRUWIRUWKHODWWHULVEDVHGRQWKHIDFWWKDWLIWKH
LQFUHDVHGLQFLGHQFHZHUHGXHWRPRUHIUHTXHQWVFUHHQLQJZLWKXOWUDVRXQGRURWKHULPDJLQJ
SURFHGXUHVRQHZRXOGH[SHFWDSURSRUWLRQDWHLQFUHDVHRIDOO KLVWRORJLFW\SHVRIWK\URLGFDQFHU±
DQGWKLVKDVQRWRFFXUUHG)XUWKHUPRUHWKHUHKDVEHHQQRRUJDQL]HGQDWLRQDOVFUHHQLQJSURJUDP
WRGHWHFWWK\URLGQRGXOHV
)LJXUH
'HVSLWHWKHDODUPLQJLQFUHDVHLQLQFLGHQFHWK\URLGFDUFLQRPDLVUHODWLYHO\UDUH'DWDIURPWKH
6XUYHLOODQFH(SLGHPLRORJ\DQG(QG5HVXOWV6((5 DQGWKH$PHULFDQ&DQFHU6RFLHW\$&6



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
HVWLPDWHWKDWWKHUHZLOOEHQHZFDVHVLQWKH8QLWHG6WDWHVRI$PHULFD86$LQ7KH
FRPSOHWHSUHYDOHQFHRIWK\URLGFDQFHULQWKH86$LQ-DQXDU\RIZDV$&6DQGLQ
-DQXDU\RILWZDV6((5$PRUHGHWDLOHGDQDO\VLVRIWKH6((5GDWDE\VWDJH
KRZHYHUVKRZHGWKDWWKHSUHYDOHQFHRISDWLHQWVZLWKUHJLRQDODQGGLVWDQWWK\URLGFDQFHUZDVOHVV
WKDQ7DEOH
7DEOH
\HDU/LPLWHG'XUDWLRQ3UHYDOHQFH
&RPSOHWH3UHYDOHQFH
6WDJH




5HJLRQDO


'LVWDQW


8QVWDJHG


$OOVWDJHV


5HJLRQDO'LVWDQW8QVWDJHG

1XPEHURISHRSOHLQWKH86$DOLYHDWDQGGLDJQRVHGZLWKPDOLJQDQWWK\URLG
FDQFHUEHWZHHQ
1XPEHURISHRSOHLQWKH86$DOLYHDWDQGHYHUGLDJQRVHGZLWKPDOLJQDQW
WK\URLGFDQFHU
'DWDDQDO\VLVLQ7DEOHNLQGO\SURYLGHG E\'U/\QQ5LHVDQG'U$QJHOD0DULRWWR
0DWKHPDWLFDO6WDWLVWLFLDQVDWWKH1DWLRQDO&DQFHU,QVWLWXWH1,+%RXOHYDUG6XLWH
06&%HWKHVGD0'7HOHSKRQH(PDLO
PDULRWWD#PDLOQLKJRY'U(OL]DEHWK:DUG([HFXWLYH'LUHFWRURI&DQFHU6XUYHLOODQFH
$PHULFDQ&DQFHU6RFLHW\&OLIWRQ5RDG$WODQWD*$SURYLGHGWKHGDWDIURP
WKH$&67HOHSKRQH(PDLO(OL]DEHWK:DUG#FDQFHURUJ
7K\URLGFDQFHURFFXUVDVRQHRIIRXUPDMRUKLVWRORJLFVXEW\SHVZLWKYDULDEOHLQFLGHQFHV
3DSLOODU\WK\URLGFDQFHU>37&@IROOLFXODUWK\URLGFDQFHU>)7&@07&DQG
DQDSODVWLFWK\URLGFDQFHU>$7&@
7KHWUHDWPHQWRISDWLHQWVZLWKWK\URLGFDUFLQRPDKDVFKDQJHGOLWWOHRYHUWKHODVW\HDUV
6XUJLFDOUHVHFWLRQLVWKHSULPDU\WUHDWPHQWRISDWLHQWVZLWK37&)7&DQG07&,QSDWLHQWVZLWK
37&DQG)7&UDGLRDFWLYHLRGLQHLVDGPLQLVWHUHGWRWUHDWSHUVLVWHQWRUUHVLGXDOGLVHDVH7KHORQJ
WHUPVXUYLYDORISDWLHQWVZLWK37&DQG)7&LVIDYRUDEOHDVDSSUR[LPDWHO\RISDWLHQWVDUH
OLYLQJ\HDUVDIWHUWK\URLGHFWRP\0HGXOODU\WK\URLGFDUFLQRPDLVGLVWLQFWO\PRUHDJJUHVVLYH
WKDQ37&RU)7&:KHWKHUSDWLHQWVKDYHKHUHGLWDU\RUVSRUDGLF07&DSSUR[LPDWHO\ZLWKD
SDOSDEOHWXPRUDWWKHWLPHRIGLDJQRVLVKDYHUHJLRQDOO\PSKQRGHPHWDVWDVHV )XUWKHUPRUH
PRVWSDWLHQWVZLWKVSRUDGLF07&DUHLQFXUDEOHDVHYLGHQFHGE\HOHYDWHGSODVPDFDOFLWRQLQ
>&71@OHYHOVIROORZLQJWK\URLGHFWRP\&DOFLWRQLQKDVEHHQURXWLQHO\XVHGDVDWXPRUPDUNHUDV
GLVFXVVHGEHORZ$OWKRXJKLQFXUDEOHWKHGLVHDVHLVVXIILFLHQWO\LQGROHQWLQVRPHSDWLHQWVWKDWD
VXEVWDQWLDOIUDFWLRQVXUYLYHV\HDUV7KXVWKH\HDUVXUYLYDOUDWHLQSDWLHQWVZLWK07&
UDQJHVIURPDQGGHSHQGVRQVHYHUDOIDFWRUVSDWLHQWDJHWXPRUVWDJHFDSVXODULQYDVLRQ
DQGPDOHJHQGHU3DWLHQWVZKRKDYHVWDJH,9GLVHDVHKDYHD\HDUVXUYLYDORI
$QDSODVWLFWK\URLGFDUFLQRPDKDVDSRRUSURJQRVLVDVIHZSDWLHQWVDUHDOLYHILYH\HDUVIURPWKH
WLPHRIGLDJQRVLV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

0HGXOODU\7K\URLG&DUFLQRPD*HQHWLFVRI0(1DQG07&
$SSUR[LPDWHO\RIFDVHVRI07&DUHVSRUDGLFZKLOHDUHKHUHGLWDU\DQGSUHVHQWDVRQH
RIWKUHHGLIIHUHQWEXWUHODWHGV\QGURPHVPXOWLSOHHQGRFULQHQHRSODVLD0(1D0(1ERU
)DPLOLDO0HGXOODU\7K\URLG&DUFLQRPD)07&7KH07&FHOOVVHFUHWHWKHSRO\SHSWLGH
KRUPRQH&71DQGWKHJO\FRSURWHLQFDUFLQRHPEU\RQLFDQWLJHQ&($ZKLFKVHUYHDVH[FHOOHQW
WXPRUPDUNHUV
7KH0(1V\QGURPHVDUHDXWRVRPDOGRPLQDQWLQKHULWHGGLVRUGHUVFDXVHGE\JHUPOLQH
DFWLYDWLQJPXWDWLRQVLQWKH5(75(DUUDQJHGGXULQJ7UDQVIHFWLRQSURWRRQFRJHQHZKLFKKDV
H[RQV 0(1PXWDWLRQVDUHORFDOL]HGLQH[RQVDQGWRVHH7DEOHEHORZ
0LVVHQVHPXWDWLRQVDWRQH RIVL[F\VWHLQHFRGRQVDWH[RQDQGDW
H[RQZKLFKUHVXOWLQWKHVXEVWLWXWLRQRIDQ\RQHRIWKHVHH[WUDF\WRSODVPLFF\VWHLQHVE\D
GLIIHUHQWDPLQRDFLGDUHUHVSRQVLEOHIRUWKHPDMRULW\RIFDVHVRI0(1$± ,Q
PRUHWKDQRIFDVHV0(1%LVDVVRFLDWHGZLWKDSRLQWPXWDWLRQLQWKHPHWKLRQLQHUHVLGXH
LQH[RQFRGRQLQWKHLQWUDFHOOXODUW\URVLQHNLQDVHUHFHSWRUGRPDLQRI5(7 0XWDWLRQV
DUHGHQRYRLQDERXWRI0(1%FDVHVWKHUHIRUHPDQ\SDWLHQWVZLWK0(1%ODFND
IDPLO\KLVWRU\RIWKHGLVHDVHDQGWKXVZRXOGQRWRWKHUZLVHEHWDUJHWHGWRXQGHUJRHDUO\VFUHHQLQJ
DQGSURSK\ODFWLFWK\URLGHFWRP\7KHVH0(1%SDWLHQWVRIWHQH[SHULHQFHDGHOD\LQGLDJQRVLV
XQWLOVLJQVRIPXFRVDOQHXURPDVRUSDOSDEOH WK\URLGWXPRUVDUHREYLRXV
7DEOH
'RPDLQ
([RQ
&RGRQV
6\QGURPH
&DGKHULQOLNH
&\VWHLQHULFK


0(1$)07&


0(1$)07&
7UDQVPHPEUDQH
7\URVLQHNLQDVH


0(1$)07&


0(1$)07&
7\URVLQHNLQDVH


0(1%


0(1%
7KH5(7SURWRRQFRJHQHLVORFDWHGRQFKURPRVRPHDQGHQFRGHVIRUDUHFHSWRUW\URVLQH
NLQDVHPRGXOH7KH5(7SURWHLQFRQWDLQVDQH[WUDFHOOXODUOLJDQGELQGLQJGRPDLQD
WUDQVPHPEUDQHUHJLRQDQGDQLQWUDFHOOXODUW\URVLQHNLQDVHUHJLRQ7KHOLJDQGVNQRZQWRLQWHUDFW
ZLWK5(7LQFOXGH*OLDOGHULYHGQHXURWURSKLFIDFWRU*'1)QHXWXULQSHUVHSKLQDQGDUWHPLQ
7KHUHLVDOVRDIDPLO\RIPHPEUDQHERXQGFRUHFHSWRUVWHUPHG*)5DDQG 7R
DFWLYDWH5(7WKHOLJDQGILUVWELQGVZLWKWKHUHTXLVLWHFRUHFHSWRUZKLFKWKHQLQWHUDFWVRQWKHFHOO
PHPEUDQHZLWKWKH5(7SURWHLQWRFDXVHUHFHSWRUGLPHUL]DWLRQDQGLQLWLDWLRQRILQWUDFHOOXODU
VLJQDOLQJWKURXJKWKHW\URVLQHNLQDVHGRPDLQV %HFDXVHWKHPXWDWLRQVWR5(7LQWKH0(1
V\QGURPHVDQGVSRUDGLF07&DUHDFWLYDWLQJWKH5(757.LVDSRWHQWLDOGLUHFWWKHUDSHXWLFWDUJHW
LQWKLVGLVHDVH
5HFHQWO\WKHJHQHWLFPXWDWLRQVRUWUDQVORFDWLRQVFDXVLQJPRVWKLVWRORJLFDOW\SHVRIWK\URLG
FDUFLQRPDKDYHEHHQGLVFRYHUHG)RUH[DPSOHWKHODUJHPDMRULW\RI37&VKDYHHLWKHU%5$)
PXWDWLRQVRU5(737&WUDQVORFDWLRQVZKLOHDPLQRULW\KDV175.RU$.$3%5$)
WUDQVORFDWLRQ 3$;33$5JUHDUUDQJHPHQWVDQGPXWDWLRQVRI+5$6DQG15$6KDYHEHHQ
UHSRUWHGZLWK YDULDEOHIUHTXHQF\LQ)7&V 0XWDWLRQVLQWKH5(7SURWRRQFRJHQHDUHSUHVHQW



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
LQWKHJHUPOLQHRIYLUWXDOO\DOOSDWLHQWVZLWKKHUHGLWDU\07&DQGSHUFHQWRISDWLHQWVZLWK
VSRUDGLF07&KDYHVRPDWLF5(7PXWDWLRQV
7RWDOWK\URLGHFWRP\LVWKHUHFRPPHQGHGWUHDWPHQWIRUSULPDU\07&$GMXYDQWUDGLRDFWLYH
LRGLQHLVQRWQHHGHGDVWKH07&FHOOVGHULYHIURPWKHQHXUDOFUHVWDQGDUHQRWFRPSRVHGRIWKH
IROOLFXODUFHOOVWKDWWDNHXSLRGLQH,QVRPHSDWLHQWVZKRGHYHORSSHUVLVWHQWRUUHFXUUHQW07&
IROORZLQJWK\URLGHFWRP\VXUJHRQVKDYHDGYRFDWHGUHSHDWQHFNH[SORUDWLRQZLWKH[WHQVLYH
UHVHFWLRQRIO\PSKQRGHVLQWKHQHFNFRPSDUWPHQWVDQGRFFDVLRQDOO\WKHPHGLDVWLQXP
$SSUR[LPDWHO\RIWKHVHSDWLHQWVKDYHQRUPDOL]DWLRQRISODVPD&71OHYHOVIROORZLQJUH
RSHUDWLRQKRZHYHULWKDVQRWEHHQVKRZQWKDWRYHUDOOVXUYLYDOLVLQFUHDVHG ,QSDWLHQWVZLWK
KHUHGLWDU\07&JHQHWLFVFUHHQLQJRIIDPLO\PHPEHUVDWGLUHFWULVNIRUGHYHORSLQJ07&LV
FULWLFDODVWKHPDMRULW\RI\RXQJFKLOGUHQVKRZQWRKDYHLQKHULWHGDPXWDWHG5(7 DOOHOHFDQEH
FXUHGE\WLPHO\SURSK\ODFWLFWK\URLGHFWRP\
6LQJOHEDVHSDLUVXEVWLWXWLRQVLQRQHRIILYHFRGRQVH[RQRUH[RQ
DUHIRXQGLQ!RI0(1$IDPLOLHV 0DQ\RIWKHVDPHPXWDWLRQVUHVSRQVLEOHIRU
0(1$KDYHDOVREHHQIRXQGLQ)07&6XEVWLWXWLRQVRIF\VWHLQHFRGRQV
DQGDUHIRXQGLQPRUHWKDWRI)07&IDPLOLHV/HVVFRPPRQO\)07&IDPLOLHVKDYH
5(7FRGRQPXWDWLRQVLQH[RQVDQG%\FRPSDULVRQSDWLHQWVZLWK0(1EPRVW
FRPPRQO\!KDYHPXWDWLRQVLQ5(7DWFRGRQ77 $YHU\IHZSDWLHQWVZLWK0(1E
KDYHPXWDWLRQVLQ5(7DWFRGRQ$)
6HYHUDOVWXGLHVKDYHVKRZQDVWURQJFRUUHODWLRQEHWZHHQWKHSUHVHQFHRIDFRGRQPXWDWLRQ
DQGWKHRFFXUUHQFHRISKHRFKURPRF\WRPDDQGRUK\SHUSDUDWK\URLGLVPLQDVVRFLDWLRQZLWK
07&LQ0(1IDPLOLHV 7KLVLVGLUHFWHYLGHQFHWKDWGLIIHUHQWPXWDWLRQVKDYHGLIIHULQJ
SKHQRW\SHV)XUWKHUPRUHUHFHQWO\DJURXSRILQWHUQDWLRQDOVFLHQWLVWVGHYHORSHGDULVNDQDO\VLV
SURILOHLQIDPLOLHVZLWKKHUHGLWDU\07&FRPSDULQJWKHVSHFLILF5(7FRGRQPXWDWLRQWRWKH
ELRORJLFDODJJUHVVLYHQHVVRIWKH07& 7KLVLVVXPPDUL]HGLQ7DEOHEHORZ
7DEOH
&DWHJRUL]DWLRQRIGLVHDVHULVNE\5(7SURWRRQFRJHQHFRGRQPXWDWLRQDQG
UHFRPPHQGDWLRQIRUSURSK\ODFWLFWK\URLGHFWRP\
5LVNOHYHOIRU07&
  +LJK
  +LJKHU
  +LJKHVW
&RGRQV




RUNQRZQ
0(1%
5HFRPPHQGHGDJH
IRUSURSK\ODFWLF
WK\URLGHFWRP\
1RFRQVHQVXV%\WR
\HDUVRUDWILUVWDEQRUPDO
VWLPXODWHGFDOFLWRQLQ
%\\HDUV
%\PRQWKVSUHIHUDEO\
ZLWKLQILUVWPRQWKRIOLIH
0RGLILHGIURP%UDQGL0/HWDO
7KXVLQWKHKHUHGLWDU\IRUPVRIWKHGLVHDVHWKHUHLVDFRUUHODWLRQEHWZHHQJHQRW\SHDQG
SKHQRW\SHERWKDVUHJDUGVWKHFOLQLFDOH[SUHVVLRQRIGLVHDVHVLQWKHV\QGURPHVDQGWKH
ELRORJLFDODJJUHVVLYHQHVVRIWKH07&7RGDWHDFRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWR
WKHUDS\KDVQRWEHHQHVWDEOLVKHG$VZLOOEHGLVFXVVHGWKLVVWXG\ZLOODOORZIRUH[SORUDWRU\
DQDO\VHVWKDWPLJKWVKHGSUHOLPLQDU\OLJKWRQWKLVSRVVLELOLW\
8QIRUWXQDWHO\SDWLHQWVZLWKORFDOO\DGYDQFHGRUPHWDVWDWLF07&KDYHDSRRUSURJQRVLV7KHUH
KDYHEHHQIHZFOLQLFDOVWXGLHVZLWKVWDQGDUGUHJLPHQVRIV\VWHPLFFKHPRWKHUDS\LQSDWLHQWVZLWK
DGYDQFHG07&DQGPRVWWULDOVDUHVLQJOHLQVWLWXWLRQVHULHVDQGLQYROYHDVPDOOQXPEHURI



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
SDWLHQWV3DUWLDOUHVSRQVHUDWHVKDYHUDQJHGIURPDQGDUHJHQHUDOO\VKRUWOLYHG7DEOH

7DEOH
(IILFDF\RI6\VWHPLF&KHPRWKHUDS\LQ 3DWLHQWVZLWK$GYDQFHG07&
([WHUQDOEHDPUDGLRWKHUDS\(;%57KDVDOLPLWHGUROHLQWKHWUHDWPHQWRI07&DQGLWLV
SULPDULO\LQGLFDWHGLQWKHWUHDWPHQWRISDWLHQWVZLWKPHWDVWDVHVWRERQHRUEUDLQ 7KXV
FRQVLGHULQJWKHUHODWLYHLQHIIHFWLYHQHVVRIFKHPRWKHUDS\DQG(;%57LQSDWLHQWVZLWKORFDOO\
DGYDQFHGRUPHWDVWDWLFWK\URLGFDQFHURIDOOKLVWRORJLFW\SHVWKHDYDLODELOLW\RIUHFHQWO\
GHYHORSHGPXOWLWDUJHWHGNLQDVHVKDVSURYLGHGWKHRSSRUWXQLW\WRHYDOXDWHWKHWKHUDSHXWLF
HIILFDF\RIWKHVHDJHQWVLQFOLQLFDOWULDOV7RGDWHWKHUHDUHHDUO\UHSRUWVRIFOLQLFDOWULDOVZLWK
VHYHUDOPXOWLWDUJHWHGNLQDVHVIRUSDWLHQWVZLWK37&DQG)7&DQG07&

%LRPDUNHUVRI07&
7KHSULPDU\VHFUHWRU\SURGXFWRIWK\URLG&FHOOVDQG07&LVFDOFLWRQLQ&71ZKLFKLVDQ
H[FHOOHQWWXPRUPDUNHU WKDWFRUUHODWHVZHOOZLWKWXPRUEXON %DVDORUVWLPXODWHG&71YDOXHV
DUHDOPRVWDOZD\VHOHYDWHGLQXQWUHDWHGSDWLHQWVZLWK07& (OHYDWHG&71YDOXHVDIWHU
VXUJHU\LQGLFDWHSHUVLVWHQWRUUHFXUUHQWGLVHDVH7KHSK\VLRORJLFUROHRI&71UHPDLQVXQFOHDU
,WPD\SOD\DUROHLQFDOFLXPUHJXODWLRQWKURXJKLWVHIIHFWVRQWDUJHWRUJDQVERQHUHVRUSWLRQ
NLGQH\FDOFLXPH[FUHWLRQDQGJDVWURLQWHVWLQDO*,WUDFW EXWDQH[FHVVRUGHILFLHQF\RI&71
GRHVQRWDSSHDUWRKDYHDVLJQLILFDQWSDWKRORJLFHIIHFWDQGVRPHEHOLHYHWKDWLWLVYHVWLJLDODQG
KDVQRIXQFWLRQ([WUHPHO\KLJKOHYHOV!SJPORIVHUXP&71FDQFDXVHV\PSWRPDWLF
LQWUDFWDEOHGLDUUKHDDQGDUHXVXDOO\DVVRFLDWHGZLWKPHWDVWDWLF07&
07&FHOOVDOVRVHFUHWH&($DQGVHYHUDOELRJHQLFDPLQHVLQDGGLWLRQWR&71$VZLWK&71
&($OHYHOVDUHJHQHUDOO\SURSRUWLRQDOWRWXPRUEXUGHQDQGDVDUHVXOW&($LVDXVHIXODOWKRXJK
QRQVSHFLILFWXPRUELRPDUNHU
6WXG\
1
7UHDWPHQW
5HVSRQVH
6FKHUXEOHWDO>@

$GULDP\FLQFLVSODWLQYLQGHVLQH
356'3'
2UODQGLHWDO>@

'DFDUED]LQH)8
356'3'
:XHWDO>@

'DFDUED]LQHF\FORSKRVSKDPLGHYLQFULVWLQH
356'3'
6FKOXPEHUJHUHWDO>@

)8VWUHSWR]RFLQRU)8GDFDUED]LQH
356'3'
'L%DUWRORPHRHWDO>@

'DFDUED]LQH)8HSLUXELFLQ
35
%DMHWWDHWDO>@

)8GDFDUED]LQHHSLUXELFLQ
35
3HWXUVVRQ>@

)8GDFDUED]LQH
&5PRQWKV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

9DQGHWDQLE&$35(/6$=')LJXUH
)LJXUH 6WUXFWXUHDQGPHWDEROLVPRIYDQGHWDQLE
1
1
1
2
2
&+
1
%U
)
+
&+
+1
1
2
2
+& 2
9DQGHWDQLE
'HVPHWK\O YDQGHWDQLE
9DQGHWDQLE 1R[LGH
 0HFKDQLVPRIDFWLRQ
9DQGHWDQLELVDVPDOOPROHFXOHUHFHSWRUW\URVLQHNLQDVH57.LQKLELWRUVHH7DEOHEHORZWKDW
SRWHQWO\LQKLELWVYDVFXODUHQGRWKHOLDOJURZWKIDFWRUUHFHSWRU9(*)5.'5W\URVLQHNLQDVH
DFWLYLW\,&  Q0DQGLWDOVRLQKLELWV5(7UHFHSWRUW\URVLQHNLQDVH,&  Q0)OW
9(*)UHFHSWRU,&  Q0DQG(*)UHFHSWRUW\URVLQHNLQDVHV,&  Q0
9DQGHWDQLEDOVRLQKLELWVWKHNLQDVHDFWLYLW\RI5(7RQFRSURWHLQVDOWKRXJKLWVDIILQLW\IRUDOORI
WKHNQRZQPXWDWHGIRUPVRI5(7LQ0(1$DQG%KDVQRWEHHQVWXGLHGDQGEORFNVLQYLYR
SKRVSKRU\ODWLRQDQGVLJQDOLQJRIWKH5(7SDSLOODU\WK\URLGFDUFLQRPDDQG5(70(1%
DFWLYDWHGRQFRSURWHLQV 1RWDEO\5(70(1%SKRVSKRU\ODWLRQ DQG5(70(1%
GHSHQGHQW0$3.DFWLYDWLRQDUHLQKLELWHGE\YDQGHWDQLELQYLYRDWWROHUDEOHGRVHV7KHJURZWKRI
FHOOVH[SUHVVLQJWKH5(737&RQFRSURWHLQLVDOVRLQKLELWHGLQYLWUR DQGLQYLYR
7DEOH
9DQGHWDQLELQKLELWLRQRI9(*)UHFHSWRUW\URVLQH
NLQDVHDFWLYLW\DQGVHOHFWLYLW\SURILOH
.LQDVH
0HDQ 6(,& ȝ0
)ROGVHOHFWLYLW\YHUVXV.'5
.'5


)OW


5(7


)OW


(*)5


3'*)5ȕ


7LH


)*)5


0(.
!
!
&'.
!
!
F.LW
!
!
(UE%
! 
!
)$.
!
!
3'.
!
!
$.7
!
!
,*)5
!
!



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
'DWDUHSUHVHQWWKHPHDQ6(RIDWOHDVWVHSDUDWHGHWHUPLQDWLRQV,& YDOXHV
TXRWHGDV³JUHDWHUWKDQ´GHQRWHWKHLQDELOLW\WRUHDFKDQ,& YDOXHZLWKWKHKLJKHVW
FRQFHQWUDWLRQWHVWHG
5DWLRIRUWKH,& REWDLQHGZLWKDJLYHQNLQDVHFRPSDUHGWRWKDWDFKLHYHGYHUVXV
.'5
9DQGHWDQLEDOVRKDVEURDGVSHFWUXPDQWLWXPRUDFWLYLW\LQYLYR LQDUDQJHRIPRGHOV
VXEFXWDQHRXVRURUWKRWRSLFDOO\LPSODQWHGKXPDQWXPRU[HQRJUDIWVRUV\QJHQHLFPXULQHWXPRUV
DQGKLVWRORJLFDOW\SHVOXQJFRORQEUHDVWSURVWDWHRYDULDQYXOYDO 9DQGHWDQLEKDVDOVREHHQ
VKRZQWRLQKLELWWXPRUPHWDVWDVHVLQOLYHUOXQJDQGO\PSKQRGHVZLWKDYDULHW\RIWXPRUV
W\SHV 5HGXFHG&'HQGRWKHOLDOFHOOVWDLQLQJDQGLQFUHDVHGWXPRUFHOOQHFURVLVKDVEHHQ
REVHUYHGLQKXPDQWXPRU[HQRJUDIWVIURPPLFHWUHDWHGFKURQLFDOO\ZLWKYDQGHWDQLERQFHGDLO\
RUDOO\IRUGD\VFRQVLVWHQWZLWKLQKLELWLRQRIDQJLRJHQHVLVDQGWXPRUYDVFXODUSHUPHDELOLW\
7KLVLVVXSSRUWHGE\G\QDPLFFRQWUDVWHQKDQFHG05,KRXUVSRVWYDQGHWDQLEGHPRQVWUDWLQJD
GRVHGHSHQGHQWUHGXFWLRQLQWXPRUNWUDQVFRQVLVWHQWZLWKDUHGXFWLRQLQYDVFXODUSHUPHDELOLW\LQ
PLFHEHDULQJKXPDQSURVWDWHWXPRU[HQRJUDIWV
 3UHFOLQLFDOWR[LFLW\
7KHSUHFOLQLFDOVDIHW\HYDOXDWLRQRIYDQGHWDQLEUHYHDOHG
x
(OHYDWHGSODVPDDODQLQHWUDQVDPLQDVH$/7DVSDUWDWHWUDQVDPLQDVH$67DQG*/'+
DFWLYLWLHVKHSDWRFHOOXODUQHFURVLVDQGDFXWHFKRODQJLWLVZHUHVHHQDWWKHKLJKHVWGRVHVXVHG
LQWKHUDWPRQWKDQGPRQWK VWXGLHV
x
*DVWURLQWHVWLQDOWUDFWWR[LFLW\ERG\ZHLJKWORVVHPHVLVDQGGLDUUKHDZDVWKHGRVHOLPLWLQJ
WR[LFLW\LQGRJVEXWWKHUHZHUHQRDVVRFLDWHGKLVWRSDWKRORJLFDOILQGLQJV
x
5HQDOSDSLOODU\QHFURVLVZDVREVHUYHGDWWKHKLJKHUGRVHVLQWKHPRQWKUDW VWXG\EXWWKLV
ILQGLQJZDVQRWVHHQLQWKHPRQWKUDWVWXG\RULQDQ\GRJVWXG\
x
+LVWRSDWKRORJLFDODQGXOWUDVWUXFWXUDOFKDQJHVFRQVLVWHQWZLWKWKHLQGXFWLRQRI
SKRVSKROLSLGRVLVZHUHREVHUYHGLQUDWVDWWKH DQGPRQWKVWXGLHV1RKLVWRORJLFDO
HYLGHQFHRISKRVSKROLSLGRVLVZDVREVHUYHGLQGRJVLQDQ\VWXG\9DQGHWDQLEKDV
SK\VLRFKHPLFDOSURSHUWLHVZKLFKKDYHEHHQVKRZQWRLQGXFHH[FHVVLYHDFFXPXODWLRQRI
LQWUDFHOOXODUSKRVSKROLSLGV
x
7KHPX]]OHUHJLRQRIWKHVNLQRIUDWVUHFHLYLQJWKHKLJKHUGRVHVRIYDQGHWDQLELQWKH DQG
PRQWKVWXGLHVVKRZHGGRVHUHODWHGDFXWHIROOLFXOLWLVDQGHSLGHUPDOPLFURDEVFHVV
IRUPDWLRQ
x
$VH[SHFWHGIURPLWVDQWLDQJLRJHQLFSURSHUWLHVYDQGHWDQLEKDVVKRZQVLJQLILFDQWHIIHFWVRQ
DOOVWDJHVRIIHPDOHUHSURGXFWLRQLQUDWV7KHVHHIIHFWVZHUHFKDUDFWHUL]HGE\WKHIROORZLQJ
 'HFUHDVHGQXPEHUVRIFRUSRUDOXWHDLQWKHRYDULHVRIUDWV
 ,QFUHDVHGHVWUXVF\FOHLUUHJXODULW\DQGDGRVHUHODWHGLQFUHDVHLQHDUO\LQWUDXWHULQH
GHDWKVUHVXOWLQJLQUHGXFHGQXPEHURIOLYHHPEU\RVDQGLQFUHDVHGSRVW
LPSODQWDWLRQORVV
 (PEU\RIHWDOGHYHORSPHQWDOWR[LFLW\LQWKHUDWLQGLFDWHGE\HPEU\RIHWDOORVV
GHOD\HGIHWDOGHYHORSPHQWKHDUWYHVVHODEQRUPDOLWLHVDQGSUHFRFLRXVRVVLILFDWLRQRI
VRPHVNXOOERQHV
x
$GRVHGHSHQGHQWLQFUHDVHLQWKHIHPRURWLELDOHSLSK\VHDO]RQHRIK\SHUWURSK\LQJURZLQJ
UDWVZKHQGRVHGGDLO\ZLWKYDQGHWDQLEIRUGD\VDQREVHUYDWLRQFRQVLVWHQWZLWKDQDELOLW\
WRLQKLELW9(*)VLJQDOLQJDQGDOVRDQJLRJHQHVLVLQYLYR
x
(OHYDWHGV\VWROLFDQGGLDVWROLFEORRGSUHVVXUHLQWHOHPHWHUHGUDWV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x
(YLGHQFHRISKRWRWR[LFLW\SRWHQWLDO
x
9DQGHWDQLEKDGQRHIIHFWRQPDOHIHUWLOLW\LQUDWVDQGQRPXWDJHQLFRUFODVWRJHQLFSRWHQWLDO
 3UHFOLQLFDOSKDUPDFRORJ\
7KHSKDUPDFRNLQHWLFVDQGPHWDEROLVPRIYDQGHWDQLEZDVVWXGLHGLQDQLPDOVDIWHURUDODQG
LQWUDYHQRXV,9DGPLQLVWUDWLRQLQWKHUDWDQGGRJDQGUHYHDOHG
x
7KHELRDYDLODELOLW\DIWHURUDOGRVLQJZDVKLJK!LQWKHUDWDQG!LQWKHGRJ7KHUH
ZDVHYLGHQFHRIVOLJKWO\ORZHUELRDYDLODELOLW\LQWKHUDWDWKLJKHUGRVHVWR7KH
DEVRUSWLRQZDVQRWUDSLGZLWKSHDNFRQFHQWUDWLRQVRFFXUULQJKRXUVSRVWGRVH$WKLJKHU
GRVHVLQUDWVDQGGRJV&[7SURILOHVZHUHIODWLQGLFDWLQJSURORQJHGDEVRUSWLRQ
x
$IWHUDQ,9GRVHRIPJNJLQUDWVWKHFOHDUDQFHUDWHZDV/NJDQGWKHWHUPLQDOKDOIOLIH
ZDV WRK$IWHUDVLQJOH,9GRVHPJNJLQGRJVWKHFOHDUDQFHZDVPOPLQNJDQG
WKHKDOIOLIHZDVK7KHYROXPHRIGLVWULEXWLRQZDV/NJ
x
3ODVPDSURWHLQELQGLQJUDQJHGIURPLQUDWVWRLQKXPDQSODVPD9DQGHWDQLEZDV
VKRZQWRELQGWR ERWKKXPDQVHUXPDOEXPLQDQGKXPDQĮ DFLGJO\FRSURWHLQ
x
7R[LFRNLQHWLFPRQLWRULQJLQUDWVVKRZHGGRVHSURSRUWLRQDOLQFUHDVHVEHWZHHQDQG
PJNJEXWDOHVVWKDQSURSRUWLRQDOLQFUHDVHLQH[SRVXUHEHWZHHQDQGPJNJ
$GPLQLVWUDWLRQWRUDWVIRUPRQWKVDWPJNJUHVXOWHGLQDIROGLQFUHDVHLQH[SRVXUH
DFFXPXODWLRQ7KHUHZDVHYLGHQFHRIDVPDOOGHJUHHRIDFFXPXODWLRQLQWKHGRJLQ
WKHPRQWKWR[LFLW\VWXG\WKDWZDVFRQILUPHGLQWKHPRQWKWR[LFRORJ\VWXG\
x
$IWHUDGPLQLVWUDWLRQRI &YDQGHWDQLEWRUDWVUDGLRDFWLYLW\SDUHQWGUXJPHWDEROLWHVZDV
UDSLGO\DQGH[WHQVLYHO\GLVWULEXWHGZLWKWKHKLJKHVWFRQFHQWUDWLRQVLQWKHJDVWURLQWHVWLQDO
WUDFWOLYHUVSOHHQDGUHQDOJODQGVDQGRWKHUJODQGXODUWLVVXHV
x
7ZRPHWDEROLWHVKDYHEHHQLGHQWLILHGLQVDPSOHVIURPUDWVDQGGRJVWKH1R[LGHRI
YDQGHWDQLEDQG1GHVPHWK\OYDQGHWDQLE7KHVHPHWDEROLWHVDQGDYDQGHWDQLEJOXFXURQLGH
KDYHEHHQLGHQWLILHGLQKXPDQV1GHVPHWK\OYDQGHWDQLELVSULPDULO\SURGXFHGE\&<3$
DQG1R[LGHYDQGHWDQLEE\IODYLQHFRQWDLQLQJPRQRR[\JHQDVHHQ]\PHV)02DQG)02
x
9DQGHWDQLEKDGQRLQKLELWRU\HIIHFWRQWKHDFWLYLW\RIKXPDQ&<3$&&RU$
EXWGLGLQKLELW'DFWLYLW\NL RIȝJPO
x
8ULQDU\UHFRYHU\RI&YDQGHWDQLELQUDWDQGGRJUDQJHGIURPRIWKHGRVH7KH
PDMRULW\RIWKHUDGLRDFWLYLW\ZDVUHFRYHUHGLQWKHIHFHV6WXGLHVLQUDWGHPRQVWUDWHGERWK
ELOLDU\H[FUHWLRQDQGHQWHURKHSDWLFUHFLUFXODWLRQRIYDQGHWDQLEUHODWHGPDWHULDO
 &OLQLFDOWULDOV
9DQGHWDQLE KDVEHHQDGPLQLVWHUHGWRRYHUDGXOWVZKRZHUHHQUROOHGLQVL[WHHQFOLQLFDOWULDOV
LQFOXGLQJWZRSKDVH,WULDOVLQFDQFHUSDWLHQWVVL[SKDVH,SKDUPDFRNLQHWLFVWXGLHVLQKHDOWK\
YROXQWHHUVDQGHLJKWSKDVH,,WULDOVLQQRQVPDOOFHOOOXQJFDQFHU16&/&VPDOOFHOOOXQJ
FDQFHU6&/&EUHDVWFDQFHUPXOWLSOHP\HORPD00DQG07&VHH6HFWLRQ 
7KHUHFRPPHQGHGDGXOWGRVHRIRUDOYDQGHWDQLELVPJGDGPLQLVWHUHGFRQWLQXRXVO\7KH
PRVWFRPPRQDGYHUVHHYHQWVUHODWHGWRYDQGHWDQLEDUHVNLQUDVKGLDUUKHDK\SHUWHQVLRQDQG
DV\PSWRPDWLFSURORQJDWLRQRIWKHHOHFWURFDUGLRJUDP47FLQWHUYDO7KHVHHYHQWVDUHGRVH
GHSHQGHQW$WDGRVHRIPJG47FSURORQJDWLRQUHVXOWLQJLQGRVHUHGXFWLRQKDVEHHQVHHQLQ
OHVVWKDQRISDWLHQWV2QHSDWLHQWDWWKHYDQGHWDQLEPJGRVHOHYHOH[SHULHQFHGHSLVRGHV
RIYHQWULFXODUWDFK\FDUGLDDWOHDVWRIZKLFKZDVFKDUDFWHUL]HGDVWRUVDGHVGHSRLQWHV
DVVRFLDWHGZLWKSURORQJDWLRQRIWKHFRUUHFWHG47LQWHUYDO9DQGHWDQLEZDVVWRSSHGDQGWKH
SDWLHQWUHFRYHUHG



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
,QWKH86SKDVH,WULDOFRQGXFWHGLQDGXOWSDWLHQWVZLWKUHIUDFWRU\VROLGWXPRUVSDWLHQWVUHFHLYHG
RQFHGDLO\RUDOYDQGHWDQLEPJLQGD\F\FOHV6HYHQW\VHYHQSDWLHQWVZHUHWUHDWHGDW
GRVHVRIPJQ PJQ PJQ PJQ PJQ DQGPJ
Q $GYHUVHHYHQWVZHUHJHQHUDOO\PLOG7KHPRVWFRPPRQGUXJUHODWHGDGYHUVHHYHQWVZHUH
GLDUUKHDQ UDVKQ QDXVHDQ K\SHUWHQVLRQQ IDWLJXHQ DQRUH[LD
Q DFQHLIRUPUDVKQ DQGPDFXORSDSXODUUDVKQ 'UXJUHODWHGDGYHUVHHYHQWV
WKDWOHGWRWUHDWPHQWGLVFRQWLQXDWLRQZHUHFRQJHVWLYHFDUGLDFIDLOXUHIROOLFXODUUDVKIROOLFXOLWLV
DQGSURORQJHG47LQWHUYDODOOQ  7KHPRVWFRPPRQGRVHOLPLWLQJWR[LFLWLHV'/7ZHUH
GLDUUKHDQ K\SHUWHQVLRQQ DQGUDVKQ 7KHLQFLGHQFHRIPRVWDGYHUVHHYHQWV
DSSHDUHGWREHGRVHGHSHQGHQW,QWKHPJGD\FRKRUWSDWLHQWVH[SHULHQFHG'/7DQGWKLV
GRVHZDVWKHUHIRUHFRQVLGHUHGWRH[FHHGWKHPD[LPXPWROHUDWHGGRVH2QFHGDLO\RUDOGRVLQJRI
YDQGHWDQLEDWPJGZDVJHQHUDOO\ZHOOWROHUDWHGLQSDWLHQWVZLWKDGYDQFHGVROLGWXPRUVDQG
WKLVGRVHZDVUHFRPPHQGHGIRUVXEVHTXHQWSKDVH,,WULDOV
,QWKHODUJHVWPRQRWKHUDS\YDQGHWDQLEVWXG\FRQGXFWHGWRGDWHFRPSDULQJYDQGHWDQLEWRJHILWLQLE
LQSDWLHQWVZLWKOXQJFDQFHU WKHPRVWIUHTXHQWDGYHUVHHYHQWVREVHUYHGZLWKYDQGHWDQLEZHUH
GLDUUKHDJUDGHRUIDWLJXHUDVKJUDGHRUQDXVHD
DQGJUDGH47FSURORQJDWLRQ$SSUR[LPDWHO\RIVXEMHFWVZKRUHFHLYHG
YDQGHWDQLEGHYHORSHGK\SHUWHQVLRQWKHPDMRULW\RIZKLFKZDV&7&JUDGHRU7KUHHVXEMHFWV
GHYHORSHG&7&JUDGHK\SHUWHQVLRQDQGQRQHZHUH&7&JUDGH7KHPHGLDQ LQFUHDVHLQ
V\VWROLFEORRGSUHVVXUHIRUVXEMHFWVZKRUHFHLYHGYDQGHWDQLEZDVPP+JWKHPHGLDQLQFUHDVH
LQGLDVWROLFEORRGSUHVVXUHZDVPP+J$QLQFUHDVHGLQFLGHQFHRI6$(VZDVQRWHGLQVXEMHFWV
ZKRUHFHLYHGYDQGHWDQLEFRPSDUHGWRWKRVHZKRUHFHLYHGJHILWLQLEYV&DUGLDF
GLVRUGHUVYVJDVWURLQWHVWLQDOGLVRUGHUVYVPDLQO\GLDUUKHDDQG
UHVSLUDWRU\GLVRUGHUVYVGLGRFFXUPRUHIUHTXHQWO\LQVXEMHFWVUHFHLYLQJ
YDQGHWDQLE7KHFDUGLDFHYHQWVLQFOXGHGDYDULHW\RIWHUPVZLWKRXWDQ\DSSDUHQWSDWWHUQ
5HVSLUDWRU\HYHQWVZHUHSULPDULO\WKRVHWKDWZRXOGEHDQWLFLSDWHGLQVXEMHFWVZLWKDGYDQFHGOXQJ
FDQFHU7KUHHVXEMHFWVUHFHLYLQJYDQGHWDQLEGHYHORSHGSXOPRQDU\HPEROLVPDQGWKUHHVXEMHFWV
GHYHORSHGLQWHUVWLWLDOOXQJGLVHDVHEXWFDVHVZHUHFRQIRXQGHGE\VXFKIDFWRUVDVVPRNLQJ
UHGXFHGPRELOLW\LQIHFWLRQOXQJFDQFHUSURJUHVVLRQDQGSUHYLRXVFKHPRWKHUDS\RUUDGLDWLRQ
WKHUDS\2QHVXEMHFWLQHDFKDUPGHYHORSHGDVHULRXVVNLQGLVRUGHU2QHVXEMHFWZKRUHFHLYHG
YDQGHWDQLEGHYHORSHGDKHPDWRORJLFHYHQWDVGLGWZRVXEMHFWVZKRUHFHLYHGJHILWLQLE1R
VXEMHFWVZKRUHFHLYHGYDQGHWDQLEGHYHORSHGVHULRXVKHSDWRWR[LFLW\7KLUWHHQDGYHUVHHYHQWVRQ
VWXG\ZHUHIROORZHGE\DQRXWFRPHRIGHDWKVHYHQLQWKHYDQGHWDQLEDUP$5'6SQHXPRQLD
SQHXPRQLWLVG\VSQHDLQWHUVWLWLDOOXQJGLVHDVHUHVSLUDWRU\IDLOXUHDQGFDUFLQRPDWRXVPHQLQJLWLV
DQGVL[LQWKHJHILWLQLEDUPEUHDWKOHVVQHVVERQHSDLQFHOOXOLWLVDFXWHUHVSLUDWRU\IDLOXUHWZR
FDVHVDQGSOHXUDOHIIXVLRQ7KHUHZHUHWZHOYHVXEMHFWVZLWKFRQILUPHG47FSURORQJDWLRQ2I
WKHVHVL[RFFXUUHGLQWKHILUVWGD\VDQGWZRLQWKHIROORZLQJGD\V7KHUHPDLQLQJIRXU
RFFXUUHGVSRUDGLFDOO\ZLWKWKHORQJHVWWLPHWRRFFXUUHQFHRIGD\V7KHUHZHUHWKUHHHYHQWV
RIUHYHUVLEOH &7&JUDGHGL]]LQHVVLQVXEMHFWVZLWKDFRQILUPHG47FSURORQJDWLRQRFFXUULQJ
ZLWKLQWKHILUVWZHHNV6XEMHFWVZLWKGL]]LQHVVKDGRWKHUHYHQWVWKDWPLJKWKDYHFDXVHG
GL]]LQHVVDQGWKHHYHQWVZHUHQRWZHOOFRUUHODWHGLQWLPHZLWKWKHDFWXDO47FSURORQJDWLRQ7KHUH
ZHUHQRRWKHUSRWHQWLDOO\UHOHYDQWDGYHUVHHYHQWVLQVXEMHFWVZLWKFRQILUPHG47FSURORQJDWLRQ
ZLWKLQWKHILUVWZHHNVDQGQRUHOHYDQWDGYHUVHHYHQWVLQVXEMHFWVZKRVHILUVWFRQILUPHG47F
SURORQJDWLRQRFFXUUHGPRUHWKDQZHHNVDIWHUUDQGRPL]DWLRQ
(YLGHQFHRIDQDGYDQWDJHIRUSURJUHVVLRQIUHHVXUYLYDOLQ16&/&ZDVVHHQZLWKYDQGHWDQLE
PJFRPSDUHGZLWKJHILWLQLEDQGLQWKHFRPELQDWLRQRIYDQGHWDQLEPJDQGGRFHWD[HO



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
FRPSDUHGWRGRFHWD[HODORQH7KHVHSURJUHVVLRQDGYDQWDJHVGLGQRWWUDQVODWHLQWRD
FRUUHVSRQGLQJDGYDQWDJHIRURYHUDOOVXUYLYDOLQSUHOLPLQDU\GDWD7KHVHREVHUYDWLRQVKDYHOHGWR
SKDVH,,,WULDOVRIYDQGHWDQLELQ16&/&
(PHUJLQJ6DIHW\3URILOH
$VDUHVXOWRIWKHXSGDWHG9DQGHWDQLE&$35(/6$=',QYHVWLJDWRU¶V%URFKXUH(GLWLRQ
QHZFOLQLFDOWULDOLQIRUPDWLRQKDVEHHQLQFOXGHG5HSRUWHGDGYHUVHHYHQWVWKDWPD\EHUHODWHG
WRYDQGHWDQLEDUHOLVWHGEHORZE\ERG\V\VWHP
x &DUGLRYDVFXODU ± DEQRUPDO(&*ZLWKRUZLWKRXW47SURORQJDWLRQLHHLWKHU7ZDYHRU
67VHJPHQWFKDQJHVFRQVLVWHQWZLWKUHSRODUL]DWLRQDEQRUPDOLWLHVWRUVDGHGHSRLQWHVDQG
YHQWULFXODUWDFK\FDUGLDERWKDWPJGDLO\GRVHDQGK\SHUWHQVLRQ
x &HQWUDO1HUYRXV6\VWHP ±KHDGDFKH UHYHUVLEOH3RVWHULRU/HXNRHQFHSKDORSDWK\
6\QGURPH
x 'LJHVWLYH ± FRQVWLSDWLRQ GLDUUKHDQDXVHDYRPLWLQJ
x +HPDWRORJLFDQG/\PSKDWLF ± HFFK\PRVLVDQGWKURPERF\WRSHQLD
x ,QYHVWLJDWLRQV ± HOHYDWHGOLYHUIXQFWLRQWHVWVJHQHUDOO\&7&&7&$(JUDGH
SUHOLPLQDU\GDWDVXJJHVWVWKHVHDUHUHYHUVLEOHLQVRPHFDVHVZKLOHFRQWLQXLQJWKHUDS\
ZHLJKWORVV
x 0HWDEROLFDQG1XWULWLRQDO ± GHK\GUDWLRQK\SRNDOHPLDK\SRPDJQHVHPLD
K\SRSKRVSKDWHPLDDQRUH[LD
x 6NLQDQG$SSHQGDJHV ± DFQHLIRUPUDVKSUXULWXVPDFXODURUPDFXSDSXODUUDVK
JHQHUDOL]HGRUORFDOL]HGORFDOL]HGDQGJHQHUDOL]HGHU\WKHPDSKRWRVHQVLWLYLW\UHDFWLRQ
VZHDWLQJ2QRFFDVLRQHVSHFLDOO\ZKHQJLYHQZLWKFKHPRWKHUDS\WKHVHKDYHSURJUHVVHG
WRPRUHVHULRXVFRQGLWLRQVWRLQFOXGHH[IROLDWLYHGHUPDWLWLVVNLQGHVTXDPDWLRQ
HU\WKURGHUPDWR[LFRGHUPDWR[LFHSLGHUPDOQHFURO\VLVHU\WKHPDPXOWLIRUPH
x 5HVSLUDWRU\ ± LQWHUVWLWLDOOXQJGLVHDVHSXOPRQDU\HPEROLVP$YHU\VPDOOQXPEHURI
SDWLHQWVZLWKOXQJFDQFHUUHFHLYLQJYDQGHWDQLEKDYHGHYHORSHGVKRUWQHVVRIEUHDWKDQG
FRXJKGXHWRLQIODPPDWLRQRUVFDUWLVVXHIRUPDWLRQLQWKHOXQJVDOWKRXJKWKLV FRXOGEH
GXHWRWKHXQGHUO\LQJGLVHDVH
x 5HQDO ± SURWHLQXULDKHPDWXULD
x 9DVFXODU ± DUWHULDOLVFKDHPLFHYHQWVLQFOXGLQJP\RFDUGLDOLQIDUFWLRQVWURNHSHULSKHUDO
LVFKDHPLDYHQRXVWKURPERHPEROLVP$VPDOOQXPEHURISDWLHQWVUHFHLYLQJYDQGHWDQLE
KDYHGHYHORSHGEORRGFORWVDIIHFWLQJWKHOHJVRUOXQJVPD\KDYHEHHQGXHWRWKH
SDWLHQW¶VFDQFHURURWKHULOOQHVVDWWKHWLPHKRZHYHULWLVFRQVLGHUHGSRVVLEOHWKDW
YDQGHWDQLEPLJKWLQFUHDVHWKHULVNIRUGHYHORSLQJEORRGFORWV
x 3V\FKLDWULF± DQ[LHW\GHSUHVVLRQ LQVRPQLD
x *HQHUDO ± DVWKHQLDIDWLJXH
1RWH $ERYHWH[WDGDSWHGIURP9DQGHWDQLE=',QYHVWLJDWRU¶V%URFKXUH(GLWLRQ1XPEHU
0DUFK)RUDGGLWLRQDOGHWDLOVRQYDQGHWDQLESOHDVHUHIHUWRWKHFXUUHQW9DQGHWDQLE
,QYHVWLJDWRU¶V%URFKXUH
 +XPDQSKDUPDFRNLQHWLFVDQGPHWDEROLVP
,QKHDOWK\VXEMHFWVYDQGHWDQLEDEVRUSWLRQDSSHDUHGWREHUHODWLYHO\VORZZLWKDPHGLDQWPD[ RI
KUDQJHK)URPWKH&PD[ SODVPDOHYHOVGHFOLQHGELH[SRQHQWLDOO\ZLWKDWHUPLQDOKDOIOLIH
RIDERXWGD\V,QSRSXODWLRQSKDUPDFRNLQHWLFPRGHOLQJYDQGHWDQLEZDVEHVWGHVFULEHGE\D
WZRFRPSDUWPHQWILUVWRUGHUDEVRUSWLRQILUVWRUGHUHOLPLQDWLRQZLWKODJWLPHPRGHOZLWKD



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
&/)RI/KDQGDYROXPHRIGLVWULEXWLRQRI/$IWHUVLQJOHGRVHVRYHUWKHGRVHUDQJH
 PJH[SRVXUHDSSHDUHGWRLQFUHDVHLQSURSRUWLRQWRWKHGRVH7KHUHZDVQRHIIHFWRI
IRRGRQWKHHLWKHU$8&RU&PD[7KHUHZDVQRSKDUPDFRNLQHWLFLQWHUDFWLRQZLWKWKHSRWHQW
LQKLELWRURI&<3$LWUDFRQD]ROHRUZLWKWKH+7DQWDJRQLVWRQGDQVHWURQ
7KHUHFRYHU\RI>&@YDQGHWDQLEZDVVORZDQGERWKELOLDU\DQGUHQDOURXWHVRI
H[FUHWLRQZHUHLPSRUWDQWLQLWVHOLPLQDWLRQ9DQGHWDQLEDQGLWV1GHVPHWK\ODQG1R[LGH
PHWDEROLWHVZHUHGHWHFWHGLQWKHV\VWHPLFFLUFXODWLRQ9DQGHWDQLEWKH1R[LGHWKH1GHVPHWK\O
DQGDJOXFXURQLGHPHWDEROLWHZHUHLGHQWLILHGLQXULQHDQGIHFHV7KHLQKLELWRU\DFWLYLW\RI1
GHVPHWK\ODQG1R[LGHPHWDEROLWHVRIYDQGHWDQLEZHUHH[DPLQHGLQDJURZWKIDFWRUVWLPXODWHG
+89(&SUROLIHUDWLRQDVVD\1GHVPHWK\OYDQGHWDQLEUHWDLQHGVLPLODUSRWHQF\DJDLQVW9(*)5
DQGVHOHFWLYLW\YHUVXV(*)DQGE)*)WRWKHSDUHQWGUXJZKHUHDVWKH1R[LGHRIYDQGHWDQLE
KDGUHODWLYHO\ZHDNDFWLYLW\LQFHOOV,& !ȝ0DJDLQVWWKHJURZWKIDFWRUVWLPXOLH[DPLQHG
,QSDWLHQWVWKHDEVRUSWLRQRIYDQGHWDQLEDSSHDUHGWREHPRUHYDULDEOHDQGSURORQJHGWKDQLQ
KHDOWK\VXEMHFWVZLWKPHGLDQWPD[ RIKDQGDODUJHUUDQJHRIK 3RSXODWLRQ
SKDUPDFRNLQHWLFPRGHOLQJVKRZHGD&/)RI/KDYROXPHRIGLVWULEXWLRQRI/DQG
DQHVWLPDWHGWHUPLQDOKDOIOLIHRIDERXWGD\V2YHUWKHGRVHUDQJHPJH[SRVXUH
DSSHDUHGWRLQFUHDVHLQDGRVHSURSRUWLRQDOPDQQHU7URXJKOHYHOVLQGLFDWHWKDWDPLQLPXPRI
GD\VRIGDLO\GRVLQJLVUHTXLUHGWRDFKLHYHVWHDG\VWDWHSODVPDFRQFHQWUDWLRQVZLWK DERXWD
IROGUDQJH WRIROGDFFXPXODWLRQFRPSDUHGWRDVLQJOHGRVH
 3KDVH,,7ULDORI9DQGHWDQLELQ$GXOWVZLWK07&
,QSUHFOLQLFDOVWXGLHVYDQGHWDQLEZDVILUVWVKRZQWREHDSRWHQWLQKLELWRURI.'5W\URVLQHNLQDVH
DFWLYLW\DQGWRKDYHWKHDELOLW\WRLQKLELWRXWJURZWKRI5(737&LQGXFHGWXPRUVLQQXGHPLFH
6XEVHTXHQWO\LQDQRSHQODEHOSKDVH,,FOLQLFDOWULDORIRUDOYDQGHWDQLELQSDWHQWVZLWK
KHUHGLWDU\07&DWWKHWLPHRIGDWDFXWRII)HEUXDU\RISDWLHQWVLQWKH,77
SRSXODWLRQZKRUHFHLYHG='  PJKDGDQREMHFWLYHUHVSRQVH$IXUWKHURI
SDWLHQWVH[SHULHQFHG6'ZHHNVDQGRISDWLHQWVH[SHULHQFHG6'DQG
 ZHHNV'LVHDVHFRQWUROZDVREVHUYHGLQSDWLHQWV
)XUWKHUPRUHWKHUHPLVVLRQVZHUHJHQHUDOO\GXUDEOHDQGHYHQWKRXJKWKHGDWDDQDO\VLVKDVQRW
EHHQFRPSOHWHGQRSDWLHQWZKRH[SHULHQFHGDSDUWLDOUHPLVVLRQKDVGHYHORSHGUHFXUUHQWGLVHDVH
,QDGGLWLRQSDWLHQWVVKRZHGDJUHDWHUWKDQDGHFUHDVHIURPEDVHOLQHRIWKHSODVPD&71
OHYHOVDQGSDWLHQWVH[SHULHQFHGDGHFUHDVHIURPEDVHOLQHRISODVPD&($OHYHOV
*HQHUDOO\VLGHHIIHFWVZHUHPLOGZLWKGLDUUKHDWKHGRVHOLPLWLQJWR[LFLW\DVVKRZQLQ7DEOH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
)LJXUH &KDQJHLQWXPRUVL]H± ZDWHUIDOOSORW,77DQDO\VLVVHW
7DEOH
7XPRU$VVHVVPHQW
3DWLHQW
%HVWREMHFWLYHUHVSRQVH
/DUJHVWFKDQJHLQWXPRU
VL]H
%HVW&715HVSRQVH
&KDQJHIURP
EDVHOLQH
3DWLHQW6WDWXV
'D\VRQ
6WXG\

&RQILUPHG35
35
'LVFRQWLQXHG


&RQILUPHG35
35
$FWLYH


&RQILUPHG35
35
$FWLYH


&RQILUPHG35
35
$FWLYH


&RQILUPHG35
35
$FWLYH


&RQILUPHG35
35
$FWLYH


&RQILUPHG35
35
$FWLYH


6'ZHHNV
35
$FWLYH


6'ZHHNV
35
'LVFRQWLQXHG


6'ZHHNV
35
$FWLYH


6'ZHHNV
35
$FWLYH


6'ZHHNV
35
$FWLYH


6'ZHHNV
35
$FWLYH

$FFRUGLQJWRVLWHUHYLHZ
&715HVSRQVH35$WOHDVWFKDQJHIURPEDVHOLQHLQVHUXP&71OHYHOVPDLQWDLQHGRYHUDPLQLPXP
RIZHHNV6'EHWZHHQDQGFKQDJHLQVHUXP&71OHYHOVPDLQWDLQHGRYHUDPLQLPXPRI
ZHHNV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7RWDOGXUDWLRQRIWLPHIURPILUVWGRVHWRODVWGRHRUGDWDFXWRIILQFOXGLQJDQ\GRVHLQWHUUXSWLRQV
&71&DOFLWRQLQ353DUWLDO5HVSRQVH6'6WDEOHGLVHDVH
7DEOH
1XPEHURISDWLHQWVZLWKWKHPRVWFRPPRQO\UHSRUWHGDGYHUVHHYHQWVVRUWHG
E\GHFUHDVLQJRUGHURIIUHTXHQF\VDIHW\DQDO\VLVVHW
='YDQGHWDQLEPJGD\1 
3UHIHUUHGWHUP
1XPEHURISDWLHQWVZKRKDGDQDGYHUVHHYHQW
'LDUUKHD
 
5DVK

)DWLJXH

1DXVHD

+HDGDFKH

$QRUH[LD

9RPLWLQJ

&RQVWLSDWLRQ

'\VJHXVLD

+\SHUWHQVLRQ

'U\VNLQ

'L]]LQHVV

(OHFWURFDUGLRJUDP47SURORQJHG

&RXJK

+\SRFDOFHPLD

(GHPDSHULSKHUDO

8ULQDU\WUDFWLQIHFWLRQ

9LVLRQEOXUUHG

$EGRPLQDOSDLQ

$FQH

$Q[LHW\

$VWKHQLD

'\VSHSVLD

,QVRPQLD

(VRSKDJLWLV

6LQXVFRQJHVWLRQ

7HPSHUDWXUHLQWROHUDQFH




9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
3UHIHUUHGWHUP
1XPEHURISDWLHQWVZKRKDGDQDGYHUVHHYHQW
$ORSHFLD

 3KDVH,,,7ULDORI9DQGHWDQLELQ$GXOWVZLWK07&
7KHDQWLWXPRUDFWLYLW\VHHQLQWKHSKDVH,,WULDORISDWLHQWVZLWK07&OHGWRLQLWLDWLRQRIDGRXEOH
EOLQGHGUDQGRPL]HGSKDVH,,,WULDORIYDQGHWDQLEYHUVXVSODFHERIRUSDWLHQWVZLWKDGYDQFHGRU
PHWDVWDWLF07&7KLVWULDODFFUXHGSDWLHQWVIURP'HFHPEHUWKURXJK1RYHPEHURI
ZLWKSDWLHQWVUDQGRPL]HGWRYDQGHWDQLEPJRUDOO\GDLO\DQGSDWLHQWVWR
SODFHER$WWKHWLPHRIGDWDFXWRII-XO\LQWKH,77DQDO\VLVRISDWLHQWV
UDQGRPL]HGWRWKHYDQGHWDQLEDUPKDGD357KLVZDVVWDWLVWLFDOO\VLJQLILFDQWFRPSDUHGWR
SODFHERSGHVSLWHXQEOLQGLQJDQGWKHRSWLRQWRFURVVRYHUWRYDQGHWDQLEDWWKHWLPHRI
SURJUHVVLRQ7KHUHVSRQVHVZHUHGXUDEOHZLWKWKHPHGLDQGXUDWLRQRIUHVSRQVHQRWUHDFKHGDW
PRQWKVRIIROORZXS3)6ZDVDOVRVXSHULRULQWKHYDQGHWDQLEDUPLQWKH,77DQDO\VLVZLWKD
+5RI&,7KHPHGLDQ3)6ZDVQRW\HWPHWDWPRQWKVRIIROORZXSIRU
SDWLHQWVLQWKHYDQGHWDQLEDUPZKHUHDVWKHPHGLDQ3)6IRUSDWLHQWVLQWKHSODFHERDUPZDV
PRQWKV,QJHQHUDOWKHGUXJZDVVDIHDQGZHOOWROHUDWHGSHUPLWWLQJWUHDWPHQWZLWKYDQGHWDQLE
IRUSURORQJHGSHULRGVRIWLPH,QWKHUDQGRPL]HGSRUWLRQWKHPHGLDQGXUDWLRQRIWUHDWPHQWZLWK
YDQGHWDQLEZDVZHHNVFRPSDUHGWRZHHNVLQWKHSODFHERDUP7KHPRVWIUHTXHQW$(V
DQ\JUDGHZHUHGLDUUKHDUDVKQDXVHDDQGK\SHUWHQVLRQ7KHPRVWFRPPRQJUDGH$(VDUH
OLVWHGLQ7DEOH
7DEOH
0RVWFRPPRQJUDGHDGYHUVHHYHQWV!LQFLGHQFHLQHLWKHUDUP
9DQGHWDQLEPJ
Q 
3ODFHER
Q 
'LDUUKHD


+\SHUWHQVLRQ


(&*47SURORQJHG
 

)DWLJXH


'HFUHDVHGDSSHWLWH


5DVK


$VWKHQLD


'\VSQHD


%DFNSDLQ


6\QFRSH



%RUWH]RPLE9HOFDGH36
$VRI0D\%RUWH]RPLEIRU,QMHFWLRQLV)'$DSSURYHGDQGLQGLFDWHGIRU
7KHWUHDWPHQWRIPXOWLSOHP\HORPDSDWLHQWVZKRKDYHUHFHLYHGDWOHDVWWZRSULRUWKHUDSLHV
DQGKDYHGHPRQVWUDWHGGLVHDVHSURJUHVVLRQRQWKHODVWWKHUDS\>0D\@
7KHWUHDWPHQWRISDWLHQWVZLWKPXOWLSOHP\HORPDZKRKDYHUHFHLYHGDWOHDVWRQHSULRUWKHUDS\
>0DUFK@
7KHWUHDWPHQWRISDWLHQWVZLWKPDQWOHFHOOO\PSKRPDZKRKDYHUHFHLYHGDWOHDVWRQHSULRU
WKHUDS\>'HFHPEHU@



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 0HFKDQLVPRIDFWLRQ
7KH6SURWHDVRPHLVDODUJH$73GHSHQGHQWPXOWLPHULF FRPSOH[WKDWGHJUDGHVLQWUDFHOOXODU
SURWHLQVWKDWKDYHEHHQWDUJHWHGIRUSURWHRO\VLVE\WKHSURFHVVRIXELTXLWLQDWLRQ6HYHUDONH\
UHJXODWRUVRIWUDQVFULSWLRQJURZWKDQGDSRSWRVLVLQFOXGLQJQXFOHDUIDFWRU^NDSSD`%1)
^NDSSD`%LQKLELWRU,^NDSSD`%SFP\FDQGF-XQ1WHUPLQDONLQDVH-1.DPRQJ
RWKHUVDUHNQRZQVXEVWUDWHVIRUSURWHDVRPDOGHJUDGDWLRQ3URWHDVRPHLQKLELWRUVKDYHVKRZQ
HYLGHQFHRISUHFOLQLFDODFWLYLW\DJDLQVWKHPDWRORJLFDOPDOLJQDQFLHVDQGVROLGWXPRUVDQGRQH
SURWHDVRPHLQKLELWRU ERUWH]RPLEKDVEHHQDSSURYHGE\WKH)RRGDQG'UXJ$GPLQLVWUDWLRQIRU
XVHLQUHODSVHGUHIUDFWRU\0000%RUWH]RPLELVDUHYHUVLEOHLQKLELWRURIWKHFK\PRWU\SVLQ
OLNHDFWLYLW\RIWKH6SURWHDVRPHLQPDPPDOLDQFHOOV7KH6SURWHDVRPHLVDODUJHSURWHLQ
FRPSOH[WKDWGHJUDGHVXELTXLWLQDWHGSURWHLQV7KHXELTXLWLQSURWHDVRPHSDWKZD\SOD\VDQ
HVVHQWLDOUROHLQUHJXODWLQJWKHLQWUDFHOOXODUFRQFHQWUDWLRQRIVSHFLILFSURWHLQVWKHUHE\
PDLQWDLQLQJKRPHRVWDVLVZLWKLQFHOOV,QKLELWLRQRIWKH6SURWHDVRPHSUHYHQWVWKLVWDUJHWHG
SURWHRO\VLVWKDWFDQDIIHFWPXOWLSOHVLJQDOLQJFDVFDGHVZLWKLQWKHFHOO7KLVGLVUXSWLRQRIQRUPDO
KRPHRVWDWLFPHFKDQLVPVFDQOHDGWRFHOOGHDWK ([SHULPHQWVKDYHGHPRQVWUDWHGWKDWERUWH]RPLE
LVF\WRWR[LFWRDYDULHW\RIFDQFHUFHOOW\SHV LQYLWUR%RUWH]RPLEFDXVHVDGHOD\LQWXPRUJURZWK
LQYLYRLQQRQFOLQLFDOWXPRUPRGHOVLQFOXGLQJ00%RUWH]RPLELVFXUUHQWO\XQGHUJRLQJ
H[WHQVLYHHYDOXDWLRQLQDYDULHW\RIRWKHUKHPDWRORJLFDODQGVROLGPDOLJQDQFLHVERWKDVDVLQJOH
DJHQWEXWSUHGRPLQDQWO\LQFRPELQDWLRQZLWKRWKHUFKHPRWKHUDSHXWLFV:KHQERUWH]RPLEZDV
VKRZQWREHDFWLYHLQWKHWUHDWPHQWRI00HPSKDVLVZDVSODFHGRQLWVDELOLW\WRLQKLELWWKH1)
^NDSSD`%SDWKZD\(YLGHQFHLQGLFDWHGWKDWSURWHDVRPHLQKLELWLRQDEURJDWHVGHJUDGDWLRQRI DQG
LQGXFHVF\WRSODVPLFDFFXPXODWLRQRI,^NDSSD`%DQLQKLELWRURI1)^NDSSD`%WKDWDFWVE\
EORFNLQJWKHQXFOHDUWUDQVORFDWLRQDQGWUDQVFULSWLRQDODFWLYLW\RI1)^NDSSD`%7KLVPD\
FRQWULEXWHWRWKHF\WRWR[LFHIIHFWVRIERUWH]RPLELQPDOLJQDQFLHVVXFKDV00LQZKLFK1)
^NDSSD`%IXQFWLRQLVLPSRUWDQWIRUWXPRUFHOOSUROLIHUDWLRQDQGVXUYLYDO+RZHYHUWKLV
VLPSOLVWLFYLHZRIWKHDJHQW
VDFWLYLW\KDVEHHQJUDGXDOO\UHSODFHGE\DPRUHLQGHSWK
XQGHUVWDQGLQJWKDWUHFRJQL]HVWKDWERUWH]RPLEDOVRUHJXODWHVWKH1)^NDSSD`%GHSHQGHQW
H[SUHVVLRQRIVHYHUDORWKHULQKLELWRUVRIDSRSWRVLVVXFKDV$FHOOXODULQKLELWRURIDSRSWRVLV
SURWHLQDQG;OLQNHGLQKLELWRURIDSRSWRVLV;,$3DQGDOVRKDVDYDULHW\RIRWKHU1)
^NDSSD`%LQGHSHQGHQWHIIHFWVLQFOXGLQJVWDELOL]DWLRQRISSURWHLQDQGXSUHJXODWLRQRIS
P51$VWDELOL]DWLRQRIFP\FSKRVSKRU\ODWLRQDQGDFWLYDWLRQRIF-XQDQGDFWLYDWLRQRIWKH)DV
SDWKZD\DPRQJPDQ\RWKHUV
 3KDUPDFRNLQHWLFV
)ROORZLQJLQWUDYHQRXVDGPLQLVWUDWLRQRIPJP GRVHWKHPHGLDQHVWLPDWHGPD[LPXP
SODVPDFRQFHQWUDWLRQRIERUWH]RPLEZDVQJP/UDQJH QJP/LQHLJKWSDWLHQWV
ZLWK00DQGFUHDWLQLQHFOHDUDQFHYDOXHVUDQJLQJIURPP/PLQ7KHPHDQHOLPLQDWLRQ
KDOIOLIHRIERUWH]RPLEDIWHUWKHILUVWGRVHUDQJHGIURP WRKRXUVDWGRVHVUDQJLQJIURP
WRPJP LQSDWLHQWVZLWKDGYDQFHGPDOLJQDQFLHV7KHSKDUPDFRNLQHWLFVRIERUWH]RPLEDVD
VLQJOHDJHQWKDVQRWEHHQIXOO\FKDUDFWHUL]HGDWWKHUHFRPPHQGHGGRVHLQ00SDWLHQWV
x
'LVWULEXWLRQ 7KHGLVWULEXWLRQYROXPHRIERUWH]RPLEDVDVLQJOHDJHQWZDVQRWDVVHVVHGDWWKH
UHFRPPHQGHGGRVHLQSDWLHQWVZLWK007KHELQGLQJRIERUWH]RPLEWRKXPDQSODVPD
SURWHLQVDYHUDJHGRYHUWKHFRQFHQWUDWLRQUDQJHRIQJP/
x
0HWDEROLVP ,QYLWUR VWXGLHVZLWKKXPDQOLYHUPLFURVRPHVDQGKXPDQF'1$H[SUHVVHG
F\WRFKURPH3LVR]\PHVLQGLFDWHWKDWERUWH]RPLELVSULPDULO\R[LGDWLYHO\PHWDEROL]HGYLD
F\WRFKURPH3HQ]\PHV$'&&DQG$7KHPDMRUPHWDEROLFSDWKZD\LV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
GHERURQDWLRQWRIRUPWZRGHERURQDWHGPHWDEROLWHVWKDWVXEVHTXHQWO\XQGHUJRK\GUR[\ODWLRQ
WRVHYHUDOPHWDEROLWHV'HERURQDWHGERUWH]RPLEPHWDEROLWHVDUHLQDFWLYHDV6SURWHDVRPH
LQKLELWRUV3RROHGSODVPDGDWDIURPSDWLHQWVDWPLQDQGPLQDIWHUGRVLQJLQGLFDWHWKDW
WKHSODVPDOHYHOVRIPHWDEROLWHVDUHORZFRPSDUHGWRWKHSDUHQWGUXJ
x
(OLPLQDWLRQ 7KHSDWKZD\VRIHOLPLQDWLRQRIERUWH]RPLEKDYHQRWEHHQFKDUDFWHUL]HGLQ
KXPDQV
 'UXJ,QWHUDFWLRQV
1RIRUPDOGUXJLQWHUDFWLRQVWXGLHVKDYHEHHQFRQGXFWHGZLWKERUWH]RPLE,QYLWUR VWXGLHVZLWK
KXPDQOLYHUPLFURVRPHVLQGLFDWHWKDWERUWH]RPLELVDVXEVWUDWHRIF\WRFKURPH3$'
&&DQG$%RUWH]RPLELVDSRRULQKLELWRURIKXPDQOLYHUPLFURVRPHF\WRFKURPH3
$&'DQG$ZLWK,&YDOXHVRI!ȝ0!ȝJP/%RUWH]RPLEPD\LQKLELW
&DFWLYLW\,&  ȝ0ȝJP/DQGLQFUHDVHH[SRVXUHWRGUXJVWKDWDUHVXEVWUDWHVIRU
WKLVHQ]\PH%RUWH]RPLEGLGQRWLQGXFHWKHDFWLYLWLHVRIF\WRFKURPH3$DQG$LQ
SULPDU\FXOWXUHGKXPDQKHSDWRF\WHV
'UXJ,QWHUDFWLRQV
,QPDOH:LVWDUUDWVERUWH]RPLEKDVEHHQVKRZQWRLQKLELWWKHGHJUDGDWLRQRI&<3(D
F\WRFKURPH3HQ]\PHUHVSRQVLEOHIRUWKHELRWUDQVIRUPDWLRQRIPDQ\RUJDQLFVROYHQWVDQG
HQYLURQPHQWDOSURFDUFLQRJHQVR[LGDWLYHDQGUHGXFWLYH ,QYLWUR H[SHULPHQWVZLWKKXPDQOLYHU
PLFURVRPHVKDYHVKRZQWKDWERUWH]RPLELVDSRRULQKLELWRURIF\WRFKURPH3&<3$&
'DQG$,& YDOXHVZHUH!  ȝPRO/!  ȝJP/%RUWH]RPLEPD\LQKLELW
&<3&DFWLYLW\,&   ȝPRO/ ȝJP/DQGLQFUHDVHH[SRVXUHWRGUXJVWKDWDUH
VXEVWUDWHVIRUWKLVHQ]\PH'XULQJFOLQLFDOWULDOVK\SRJO\FHPLDDQGK\SHUJO\FHPLDZHUH
UHSRUWHGLQSDWLHQWVZKRVHGLDEHWHVZDVFRQWUROOHGZLWKRUDOK\SRJO\FHPLFDJHQWV3DWLHQWVRQ
RUDODQWLGLDEHWLFDJHQWVUHFHLYLQJERUWH]RPLEPD\UHTXLUHPRUHIUHTXHQWEORRGJOXFRVH
PRQLWRULQJDQGLILQGLFDWHGDGMXVWPHQWRIDQWLGLDEHWLFPHGLFDWLRQGRVHV>9HOFDGHSURGXFW
ODEHOLQJ2FW0LOOHQQLXP3KDUPDFHXWLFDOV,QF&DPEULGJH0$@
 %RUWH]RPLE$GYHUVH(YHQWV
7DEOH
%RUWH]RPLE$GYHUVH(YHQWV
&RPPRQ$GYHUVH(YHQWV
&DUGLRYDVFXODU
+\SRWHQVLRQ± 
'HUPDWRORJLF
5DVK± 
*DVWURLQWHVWLQDO
&RQVWLSDWLRQ± 
'HFUHDVHLQDSSHWLWH± 
'LDUUKHD± 
1DXVHD± 
+HPDWRORJLF
$QHPLD± 
0XVFXORVNHOHWDO
$UWKUDOJLD± 
1?%RQHSDLQ
&UDPS± 
0\DOJLD± 
1HXURORJLF
$VWKHQLD± 
3HULSKHUDOQHXURSDWK\± 



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
&RPPRQ$GYHUVH(YHQWV
2SKWKDOPLF
%OXUUHGYLVLRQ
3V\FKLDWULF
0HQWDOGLVRUGHU
5HVSLUDWRU\
/RZHUUHVSLUDWRU\WUDFWLQIHFWLRQ
2WKHU
)HYHU± 
6HULRXV$GYHUVH(YHQWV
&DUGLRYDVFXODU
&RQJHVWLYHKHDUWIDLOXUHKHDUWGLVHDVH
'HUPDWRORJLF
7R[LFHSLGHUPDOQHFURO\VLV
*DVWURLQWHVWLQDO
9RPLWLQJ± 
+HPDWRORJLF
1HXWURSHQLFGLVRUGHU
7KURPERF\WRSHQLD
+HSDWLF
+HSDWLFIDLOXUHDFXWH
,PPXQRORJLF
$QJLRHGHPD
1HXURORJLF
3RVWKHUSHWLFQHXUDOJLD
7UDQVLHQWLVFKHPLFDWWDFN
5HVSLUDWRU\
$FXWHUHVSLUDWRU\GLVWUHVVV\QGURPHUDUH
,QWHUVWLWLDOSQHXPRQLDUDUH
3QHXPRQLWLVDFXWHUDUH
 &OLQLFDO6WXGLHV$YHU\EULHIVXPPDU\KLVWRU\
&OLQLFDO6WXGLHVLQ5HODSVHGDQG5HIUDFWRU\00
7KHVDIHW\DQGHIILFDF\RIERUWH]RPLEZHUHLQLWLDOO\HYDOXDWHGLQDQRSHQODEHOVLQJOHDUP
PXOWLFHQWHUVWXG\RISDWLHQWVZKRKDGUHFHLYHGDWOHDVWSULRUWKHUDSLHVDQGGHPRQVWUDWHG
GLVHDVHSURJUHVVLRQRQWKHLUPRVWUHFHQWWKHUDS\6LQFHWKHQFRXQWOHVVQXPEHUVRISDWLHQWVZLWKD
EURDGYDULHW\RIFDQFHUKDYHEHHQVDIHO\WUHDWHGZLWKERUWH]RPLEDOEHLWZLWKVRPHUHFXUULQJEXW
PDQDJHDEOHWR[LFLWLHV,QWKHRSHQODEHOVLQJOHDUPPXOWLFHQWHUVWXG\RISDWLHQWVZLWK00
WKHPHGLDQQXPEHURISULRUWKHUDSLHVZDVVL[%DVHOLQHSDWLHQWDQGGLVHDVHFKDUDFWHULVWLFVDUH
VXPPDUL]HGLQ7DEOH$Q,9EROXVLQMHFWLRQRIERUWH]RPLEPJPGRVHZDVDGPLQLVWHUHG
WZLFHZHHNO\IRUWZRZHHNVIROORZHGE\DGD\UHVWSHULRGGD\WUHDWPHQWF\FOHIRUD
PD[LPXPRIHLJKWWUHDWPHQWF\FOHV7KHVWXG\HPSOR\HGGRVHPRGLILFDWLRQVIRUWR[LFLW\
3DWLHQWVZKRH[SHULHQFHGDUHVSRQVHWRERUWH]RPLEWUHDWPHQWZHUHDOORZHGWRFRQWLQXH
ERUWH]RPLEWUHDWPHQWLQDQH[WHQVLRQVWXG\
7DEOH
9HOFDGHLQ001 
6XPPDU\RI3DWLHQW3RSXODWLRQDQG'LVHDVH&KDUDFWHULVWLFV
3DWLHQW&KDUDFWHULVWLFV
0HGLDQ$JHLQ<HDUV5DQJH

*HQGHU0DOH)HPDOH

5DFH&DXFDVLDQ%ODFN2WKHU

.DUQRIVN\3HUIRUPDQFH6WDWXV6FRUH

+HPRJORELQJ/

3ODWHOHWFRXQW[/

'LVHDVH&KDUDFWHULVWLFV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7\SHRIP\HORPD,J*,J$/LJKWFKDLQ

0HGLDQȕPLFURJOREXOLQPJ/

0HGLDQ&UHDWLQLQH&OHDUDQFHP/PLQ

$EQRUPDO&\WRJHQHWLFV

&KURPRVRPH'HOHWLRQ

0HGLDQ'XUDWLRQRI006LQFH'LDJQRVLV
\HDUV
3UHYLRXV7KHUDS\
$Q\3ULRU6WHURLGVHJGH[DPHWKDVRQH9$'

$Q\3ULRU$ON\ODWLQJ$JHQWVHJ039%0&3

$Q\3ULRU$QWKUDF\FOLQHVHJ9$'PLWR[DQWURQH

$Q\3ULRU7KDOLGRPLGH7KHUDS\

5HFHLYHGDW/HDVWRIWKH$ERYH

5HFHLYHGDW/HDVWRIWKH$ERYH

5HFHLYHG$OORIWKH$ERYH

$Q\3ULRU6WHP&HOO7UDQVSODQW2WKHU+LJKGRVH7KHUDS\

3ULRU([SHULPHQWDORU2WKHU7\SHVRI7KHUDS\

%DVHGRQQXPEHURISDWLHQWVZLWKEDVHOLQHGDWDDYDLODEOH
1LQHW\HLJKWSHUFHQWRIVWXG\SDWLHQWVUHFHLYHGDVWDUWLQJGRVHRIPJP7ZHQW\HLJKW
SHUFHQWRIWKHVHSDWLHQWVUHFHLYHGDGRVHRIPJP WKURXJKRXWWKHVWXG\ZKLOHRI
SDWLHQWVZKRVWDUWHGDWDGRVHRIPJP KDGWRKDYHWKHLUGRVHUHGXFHGGXULQJWKHVWXG\
7DEOH6L[W\WKUHHSHUFHQWRISDWLHQWVKDGDWOHDVWRQHGRVHKHOGGXULQJWKHVWXG\,QJHQHUDO
SDWLHQWVZKRKDGDFRQILUPHG&5UHFHLYHGDGGLWLRQDOF\FOHVRI9(/&$'(WUHDWPHQWEH\RQG
FRQILUPDWLRQ7KHPHDQQXPEHURIF\FOHVDGPLQLVWHUHGZDVVL[7KHPHGLDQWLPHWRUHVSRQVH
ZDVGD\VUDQJHWRGD\V7KHPHGLDQVXUYLYDORIDOOSDWLHQWVHQUROOHGZDVPRQWKV
UDQJHWRPRQWKV
7DEOH
6XPPDU\RI'LVHDVH2XWFRPHV
5HVSRQVH$QDO\VHV9(/&$'(PRQRWKHUDS\1 
5HVSRQVH
1
&,
2YHUDOO5HVSRQVH5DWH%ODGp&535


&RPSOHWH5HVSRQVH&5


3DUWLDO5HVSRQVH35


&OLQLFDO5HPLVVLRQ6:2*


.DSODQ0HLHU(VWLPDWHG0HGLDQ'XUDWLRQRI5HVSRQVH&,
'D\V
1(
&RPSOHWH5HVSRQVHUHTXLUHGGLVDSSHDUDQFHRIWKHRULJLQDOPRQRFORQDOSURWHLQ
IURPEORRGDQGXULQHRQDWOHDVWGHWHUPLQDWLRQVDWOHDVWZHHNVDSDUWE\
LPPXQRIL[DWLRQDQGSODVPDFHOOVLQWKHERQHPDUURZRQDWOHDVWWZR
GHWHUPLQDWLRQVIRUDPLQLPXPRIVL[ZHHNVVWDEOHERQHGLVHDVHDQGFDOFLXP
3DUWLDO5HVSRQVHUHTXLUHVUHGXFWLRQLQVHUXPP\HORPDSURWHLQDQG
UHGXFWLRQRIXULQHP\HORPDSURWHLQRQDWOHDVWRFFDVLRQVIRUDPLQLPXPRIDWOHDVW
ZHHNVVWDEOHERQHGLVHDVHDQGFDOFLXP
&OLQLFDO5HPLVVLRQ6:2*UHTXLUHGUHGXFWLRQLQVHUXPP\HORPDSURWHLQ
DQGRUUHGXFWLRQRIXULQHP\HORPDSURWHLQRQDWOHDVWRFFDVLRQVIRUDPLQLPXP
RIDWOHDVWZHHNVVWDEOHERQHGLVHDVHDQGFDOFLXP



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
1RWH ,QWKLVVWXG\WKHUHVSRQVHUDWHWR9(/&$'(ZDVLQGHSHQGHQWRIWKHQXPEHUDQG
W\SHVRISULRUWKHUDSLHV7KHUHZDVDGHFUHDVHGOLNHOLKRRGRIUHVSRQVHLQSDWLHQWVZLWK
HLWKHU!SODVPDFHOOVRUDEQRUPDOF\WRJHQHWLFVLQWKHERQHPDUURZ5HVSRQVHVZHUH
VHHQLQSDWLHQWVZLWKFKURPRVRPHDEQRUPDOLWLHV$VPDOOGRVHUHVSRQVHVWXG\ZDV
SHUIRUPHGLQSDWLHQWVZLWKPXOWLSOHP\HORPDZKRUHFHLYHGDPJPGRVHRUD
PJPGRVHWZLFHZHHNO\IRUWZRRXWRIWKUHHZHHNV$VLQJOHFRPSOHWHUHVSRQVHZDV
VHHQDWHDFKGRVHDQGWKHUHZHUHRYHUDOO&535UHVSRQVHUDWHVRIDW
PJP DQGDW PJP
&OLQLFDO6WXGLHVLQ0DQWOH&HOO/\PSKRPD
,QDGGLWLRQLQ'HFHPEHUWKH)'$JUDQWHGDSSURYDOWRERUWH]RPLEIRUWKHWUHDWPHQWRI
SDWLHQWVZLWKPDQWOHFHOOO\PSKRPDZKRKDGUHFHLYHGDWOHDVWRQHSULRUWKHUDS\$QRSHQODEHO
VLQJOHDUPPXOWLFHQWHUVWXG\RISDWLHQWVZLWKSURJUHVVLYHPDQWOHFHOOO\PSKRPDZKRKDG
UHFHLYHGDWOHDVWRQHSULRUWKHUDS\ZDVSHUIRUPHGWRDVVHVVUHVSRQVHUDWHDQGGXUDWLRQ7DEOH
6HYHQW\ILYHSHUFHQWKDGRQHRUPRUHH[WUDQRGDOGLVHDVHVLWHVDQGSHUFHQWZHUHVWDJH,Q
SHUFHQWRISDWLHQWVSULRUWKHUDS\LQFOXGHGDQDQWKUDF\FOLQHRUPLWR[DQWURQH
F\FORSKRVSKDPLGHDQGULWX[LPDE7KLUW\VHYHQSHUFHQWZHUHUHIUDFWRU\WRWKHLUODVWSULRU
WKHUDS\3DWLHQWVUHFHLYHGERUWH]RPLEPJP LQWUDYHQRXVO\RQGD\VDQGRIHDFK
WKUHHZHHNF\FOH5HVSRQVHUDWHVZHUHGHWHUPLQHGDFFRUGLQJWRWKH,QWHUQDWLRQDO:RUNVKRS
5HVSRQVH&ULWHULDDQGZHUHEDVHGRQDQLQGHSHQGHQWUDGLRORJLF&7VFDQUHYLHZ7KH
RYHUDOOUHVSRQVHUDWH&5SOXV&5XSOXV35ZDVSHUFHQWDQGWKHPHGLDQUHVSRQVHGXUDWLRQ
ZDVPRQWKV7KH&5SOXV&5XUHVSRQVHUDWHZDVSHUFHQWDQGWKHPHGLDQUHVSRQVHGXUDWLRQ
ZDVPRQWKV7KHPHGLDQQXPEHURIF\FOHVLQUHVSRQGLQJSDWLHQWVZDVHLJKW7KHPHGLDQ
WLPHWRUHVSRQVHZDVGD\VUDQJHWRGD\V$GYHUVHHYHQWVLUUHVSHFWLYHRIWKHLU
UHODWLRQVKLSWRERUWH]RPLEZHUHVLPLODUWRWKRVHREVHUYHGLQWKHSUHYLRXVO\UHSRUWHGP\HORPD
VWXGLHV7KHPRVWFRPPRQO\UHSRUWHGWUHDWPHQWHPHUJHQWDGYHUVHHYHQWVZHUHDVWKHQLF
FRQGLWLRQVSHULSKHUDOQHXURSDWKLHVFRQVWLSDWLRQGLDUUKHDQDXVHD
DQGGHFUHDVHGDSSHWLWHSHUFHQW7KHPRVWFRPPRQDGYHUVHHYHQWOHDGLQJWR
GLVFRQWLQXDWLRQZDVSHULSKHUDOQHXURSDWK\
7DEOH0DQWOH&HOO/\PSKRPD
%HVW5HVSRQVHWR7UHDWPHQW1 E\$OJRULWKPDQGE\,QYHVWLJDWRU$VVHVVPHQW
%\,QYHVWLJDWRU
%\$OJRULWKP
5HVSRQVH


&,


&,
&5&5X35


WR


WR
&5&5X


WR


WR
&5


WR


WR
35


WR


WR
6'


WR


WR
3'


WR


WR
1RSRVWEDVHOLQHDVVHVVPHQW


WR


WR
$EEUHYLDWLRQV&5FRPSOHWHUHVSRQVH&5XXQFRQILUPHG&5
3'SURJUHVVLYHGLVHDVH35SDUWLDOUHVSRQVH6'VWDEOHGLVHDVH
5HVSRQVHGDWHRIUHVSRQVHDQG3'ZHUHGHWHUPLQHGXVLQJDFRPSXWHU DOJRULWKPWKDW
DSSOLHGWKH,QWHUQDWLRQDO:RUNVKRS5HVSRQVH&ULWHULD,:5&ZLWKDPLQRUPRGLILFDWLRQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
WR FRUUHODWHPRUHFORVHO\ZLWKDSSOLFDWLRQRIWKHVHFULWHULDLQ FOLQLFDOSUDFWLFHDQGXVHG
WXPRUPHDVXUHPHQWVIURPLQGHSHQGHQW UDGLRORJ\UHYLHZRISDWLHQWVFDQV7KH,:5&
PRGLILFDWLRQZDV LQFRUSRUDWHGZKHQLWEHFDPHFOHDUWKDWVPDOOFKDQJHVLQQRGHV VPDOOHU
WKDQFPLQVL]HZHUHDVVHVVHGDV3'E\DOJRULWKPEXW QRWE\LQYHVWLJDWRU7KHGHILQLWLRQ
RI3'ZKLFKUHTXLUHG RUKLJKHULQFUHDVHLQWKHSURGXFWRIWKHORQJHVWSHUSHQGLFXODU
GLPHQVLRQVRIDQ\SUHYLRXVO\LGHQWLILHGPHDVXUDEOHVLWHRI O\PSKRPDRURUKLJKHU
LQFUHDVHLQWKHORQJHVWGLPHQVLRQ RIDQ\SUHYLRXVO\LGHQWLILHGVLWHRIO\PSKRPDWKDWZDV
ODUJHU WKDQFPLQWKHORQJHVWWUDQVYHUVHGLPHQVLRQLHPHDVXUDEOH DWEDVHOLQHZDV
PRGLILHGWRVSHFLI\WKDWWKHOHVLRQVKRXOG EHODUJHUWKDQFPLQERWKSHUSHQGLFXODU
GLPHQVLRQVDWWKH WLPHRI3'DQGWKDWWKHDEVROXWHLQFUHDVHLQHLWKHUGLPHQVLRQ RULQWKH
ORQJHVWGLPHQVLRQUHVSHFWLYHO\VKRXOGEHDWOHDVW FP7KLVEHWWHUUHIOHFWVWKHUHFHQWO\
XSGDWHG,:5&
 &OLQLFDO6WXGLHV%RUWH]RPLEGRVHDQGVFKHGXOHV
7KHPRVWZLGHO\XVHGERUWH]RPLEUHJLPHQIRU00 HPSOR\VWRPJSHUVTXDUHPHWHUSHU
GRVHRQGD\VDQG)RUH[DPSOHLQWKHUHJLVWUDWLRQWULDOVIRU00FLWHGDERYHRI
VWXG\SDWLHQWVUHFHLYHGDVWDUWLQJGRVHRIPJP7ZHQW\HLJKWSHUFHQWRIWKHVHSDWLHQWV
UHFHLYHGDGRVHRIPJPWKURXJKRXWWKHVWXG\ZKLOHRISDWLHQWVZKRVWDUWHGDWDGRVH
RIPJP KDGWRKDYHWKHLUGRVHUHGXFHGGXULQJWKHVWXG\6L[W\WKUHHSHUFHQWRISDWLHQWVKDG
DWOHDVWRQHGRVHKHOGGXULQJWKHVWXG\,QJHQHUDOSDWLHQWVZKRKDGDFRQILUPHG&5UHFHLYHG
DGGLWLRQDOF\FOHVRIERUWH]RPLE WUHDWPHQWEH\RQGFRQILUPDWLRQ7KHPHDQQXPEHURIF\FOHV
DGPLQLVWHUHGZDVVL[7KHPHGLDQWLPHWRUHVSRQVHZDVGD\VUDQJHWRGD\V7KH
PHGLDQVXUYLYDORIDOOSDWLHQWVHQUROOHGZDVPRQWKVUDQJHWRPRQWKV$VPDOOGRVH
UHVSRQVHVWXG\ZDVSHUIRUPHGLQSDWLHQWVZLWK00ZKRUHFHLYHGDPJPGRVHRUD
PJPGRVHWZLFHZHHNO\IRUWZRRXWRIWKUHHZHHNV$VLQJOHFRPSOHWHUHVSRQVHZDVVHHQDW
HDFKGRVHDQGWKHUHZHUHRYHUDOO&535UHVSRQVH UDWHVRIDWPJP DQG
DWPJP7KHODWWHUVXJJHVWVWKDWWKHUHPD\EHPRUHWKDQRQHRSWLPDOGRVHDQG
VFKHGXOHIRUSDWLHQWVZLWK00DQGLQFDQFHUSDWLHQWVLQJHQHUDO,QGHHGRWKHUVFKHGXOHVKDYH
EHHQXVHG)RUH[DPSOHDUHFHQWO\UHSRUWHGSKDVH,DQGSKDUPDFRORJLFVWXG\RIVHTXHQFHVRI
ERUWH]RPLELQFRPELQDWLRQZLWKSDFOLWD[HODQGFDUERSODWLQLQSDWLHQWVZLWKDGYDQFHG
PDOLJQDQFLHVH[SORUHGWZRVFKHGXOHV7KHVWXG\LGHQWLILHGWKHPD[LPXPWROHUDWHGGRVHDQGWKH
UHFRPPHQGHGGRVHVIRUIXWXUHSKDVH,,WULDOVDVERUWH]RPLEPJSHUVTXDUHPHWHUSDFOLWD[HO
 PJSHUVTXDUHPHWHUDQGFDUERSODWLQ$8&  3DQFUHDWLFFDQFHUSDWLHQWVZHUH
UDQGRPL]HGWRUHFHLYHHLWKHUZHHNF\FOHVRIERUWH]RPLEPJSHUVTXDUHPHWHURQGD\V 
DQGRUERUWH]RPLEPJSHUVTXDUHPHWHURQGD\VDQGSOXVJHPFLWDELQH
PJSHUVTXDUHPHWHURQGD\VDQG7ZHOYHRIHYDOXDEOHSDWLHQWVWUHDWHGZLWK
ERUWH]RPLEDORQHH[SHULHQFHGDWOHDVWRQHJUDGH$(ZKLOHHOHYHQRIHYDOXDEOHSDWLHQWV
WUHDWHGZLWKWKHFRPELQDWLRQH[SHULHQFHGDWOHDVWRQHJUDGH$(ZLWKRQHSDWLHQW
KDYLQJJUDGHK\SRWHQVLRQ )LQDOO\DUHFHQWO\UHSRUWHGSKDVH,SKDUPDFRORJLFWULDORIWZR
VFKHGXOHVRIERUWH]RPLELQSDWLHQWVZLWKDGYDQFHG FDQFHUDGPLQLVWHUHGWKHFRPSRXQGHLWKHU
WZLFHZHHNO\IRURIZHHNVRUWZLFHZHHNO\IRURIHYHU\ZHHNVDQGIRXQGGRVHOLPLWLQJ
WKURPERF\WRSHQLDDWWRPJSHUVTXDUHPHWHUDVZHOODVGRVHOLPLWLQJVHQVRU\QHXURSDWK\
7KHPD[LPXPWROHUDWHGGRVH IRUERWKVFKHGXOHVZDVPJSHUVTXDUHPHWHU,QWHUHVWLQJO\
UHYHUVLEOHGRVHGHSHQGHQWGHFUHDVHVLQ6SURWHDVRPHDFWLYLW\LQ3%0&VZHUHREVHUYHGZLWK
LQKLELWLRQDWPJSHUVTXDUHPHWHUDWPJSHUVTXDUHPHWHUDQGDWPJ
SHUVTXDUHPHWHUZLWKDFFXPXODWLRQRISURWHDVRPHWDUJHWHGSRO\SHSWLGHVGHWHFWHGLQWXPRU
VDPSOHVDIWHUWUHDWPHQWZLWKERUWH]RPLE 7KHDXWKRUVFRQFOXGHGWKDWPJSHUVTXDUHPHWHU



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
ERUWH]RPLEWZLFHZHHNO\IRURIHYHU\ZHHNVLVZHOOWROHUDWHGDQGVKRXOGEHIXUWKHUVWXGLHG
)URPWKLVDQGRWKHUGDWDLWVHHPVFOHDUWKDWDGRVHRIPJSHUVTXDUHPHWHUWZLFHZHHNO\LV
OLNHO\WRRWR[LFWREHVXVWDLQHGRYHUDSURORQJHGSHULRGRIWLPHHVSHFLDOO\LQSDWLHQWVUHFHLYLQJD
7.,VXFKDVYDQGHWDQLEZKRPLJKWFRQWLQXHWUHDWPHQWIRUDORQJWLPH,WDOVRVHHPVSUREDEOH
WKDWDGRVHRIPJSHUVTXDUHPHWHUZRXOGEHDPD[LPXPWROHUDWHGGRVHLQFRPELQDWLRQZLWK
DQRWKHUDJHQWHYHQD³QRQF\WRWR[LF´DJHQWVXFKDVYDQGHWDQLELIHLWKHUDWKUHHRUIRXUGRVH
WZLFHZHHNO\VFKHGXOHRIDGPLQLVWUDWLRQLVXVHG+RZHYHULWLVFOHDUWKDWRWKHUGRVHVFKHGXOHV
DUHXQGHULQYHVWLJDWLRQDQGWKDWWKHUHLVQRKDUGHYLGHQFHWKDWWKHVFKHGXOHVXVHGWRGDWHDUHWKH
RQO\RQHVOLNHO\WREHDFWLYH
,QPRVWVROLGWXPRUVERUWH]RPLEKDVQRWVKRZQVLJQLILFDQWDFWLYLW\WRGDWHDOWKRXJKVRPH
FRPELQDWLRQVWXGLHVDUHVWLOORQJRLQJDQGDILQDOFRQFOXVLRQDWWRLWVDFWLYLW\RUODFNWKHUHRILQ
VROLGWXPRUVFDQQRW\HWEHUHDFKHG$IHZUHIHUHQFHVDUHSURYLGHGEHORZ
/XQJ&DQFHU
/DUD31-U&KDQVN\.'DYLHV$0)UDQNOLQ:$*XPHUORFN3+*XDJOLDQRQH33$WNLQV-1
)DUQHWK10DFN3&&URZOH\--*DQGDUD'5%RUWH]RPLE36LQUHODSVHGRUUHIUDFWRU\
H[WHQVLYHVWDJHVPDOOFHOOOXQJFDQFHUD6RXWKZHVW2QFRORJ\*URXSSKDVH,,WULDO6-
7KRUDF2QFRO
%UHDVW
(QJHO5+%URZQ-$9RQ5RHQQ-+2
5HJDQ50%HUJDQ5%DGYH65DGHPDNHU$
*UDGLVKDU:-$SKDVH,,VWXG\RIVLQJOHDJHQWERUWH]RPLELQSDWLHQWVZLWKPHWDVWDWLFEUHDVW
FDQFHUDVLQJOHLQVWLWXWLRQH[SHULHQFH&DQFHU,QYHVW
6DUFRPDV
0DNL5*.UDIW$66FKHX.<DPDGD-:DGOHU6$QWRQHVFX&5:ULJKW--6FKZDUW]*.
$PXOWLFHQWHU3KDVH,,VWXG\RIERUWH]RPLELQUHFXUUHQWRUPHWDVWDWLFVDUFRPDV&DQFHU

9DULRXV
-DWRL$'DNKLO65)RVWHU150D&5RZODQG.0-U0RRUH')-U-DVORZVNL$-7KRPDV63
+DXJH0')O\QQ3-6WHOOD3-$OEHUWV65%RUWH]RPLESDFOLWD[HODQGFDUERSODWLQDVDILUVW
OLQHUHJLPHQIRUSDWLHQWVZLWKPHWDVWDWLFHVRSKDJHDOJDVWULFDQGJDVWURHVRSKDJHDOFDQFHUSKDVH
,,UHVXOWVIURPWKH1RUWK&HQWUDO&DQFHU7UHDWPHQW*URXS1%-7KRUDF2QFRO

 $SRWHQWLDOUROHIRU1)N% LQWK\URLGFDQFHUDQGDFWLYLW\RIERUWH]RPLEDJDLQVWWK\URLG
FDQFHU
3UHYLRXVVWXGLHVKDYHVKRZQWKDW1)N%LVDFWLYDWHGLQ77FHOOVDKXPDQ07&FHOOOLQH
H[SUHVVLQJ0(1DW\SH5(7,QKLELWLRQRIFRQVWLWXWLYH1)N%DFWLYLW\LQ77FHOOVUHVXOWHGLQ
FHOOGHDWKDQGEORFNHGIRFXVIRUPDWLRQLQGXFHGE\RQFRJHQLFIRUPVRI5(7LQ1,+7FHOOV
7KHVHVWXGLHVVXJJHVWWKDW5(7PHGLDWHGFDUFLQRJHQHVLVGHSHQGVLQSDUWRQ,N%.LQDVH,..
DFWLYLW\DQGVXEVHTXHQW1)N%DFWLYDWLRQ)LJXUHVDQG



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
)LJXUH
),*85( 2QFRJHQLF5(7LQGXFHV1)%GHSHQGHQWWUDQVFULSWLRQ/HIWSDQHO+H/D
FHOOVZHUHWUDQVLHQWO\WUDQVIHFWHGZLWKWKH[%,)1/XFUHSRUWHUȝJPPZHOO
WRJHWKHUZLWKH[SUHVVLRQYHFWRUVHQFRGLQJRQFRJHQLF5(7PXWDQWV&5DQG07RU
ZLOGW\SH5(7RUȝJUHVSHFWLYHO\)RUW\HLJKWKDIWHUWUDQVIHFWLRQFHOOVZHUHO\VHG
IRUOXFLIHUDVHDVVD\&ROXPQV IROGLQGXFWLRQRIOXFLIHUDVHDFWLYLW\UHODWLYHWRWKHUHSRUWHU
DORQHDQGUHSUHVHQWPHDQVRIIRXULQGHSHQGHQWH[SHULPHQWVSHUIRUPHGLQWULSOLFDWHEDUV
6(5LJKWSDQHOFRWUDQVIHFWLRQRI,%6$6$DEROLVKHV1)%DFWLYDWLRQLQGXFHG
E\RQFRJHQLF5(7LQ +H/DFHOOV&HOOVZHUHWUHDWHGDVGHVFULEHGDERYH7KUHHȝJRIWKH
UHVSHFWLYH5(7PXWDQWVZHUHFRWUDQVIHFWHGZLWKȝJRI,%6$6$9DOXHV
UHSUHVHQWPHDQVRIWZRLQGHSHQGHQWH[SHULPHQWVSHUIRUPHGLQWULSOLFDWHEDUV6(
)LJXUH
),*85(1)N% LQKLELWLRQDIIHFWVYLDELOLW\RI77FHOOVDQGEORFNV5(7LQGXFHG
WUDQVIRUPDWLRQRI1,+7FHOOV/HIWSDQHO,QKLELWLRQRI1)N% LQGXFHVFHOOGHDWKRI
77FHOOV77FHOOVZHUHWUDQVLHQWO\WUDQVIHFWHGZLWKWKHH[SUHVVLRQYHFWRUVOLVWHGRQWKH
;D[LVFRQWDLQLQJWKHGRPLQDQWQHJDWLYHPXWDQWVRI,..D,..E0(..DQG,N%D
HPSW\SF'1$DVFRQWUROWRJHWKHUZLWKS&'1$/DF=7KHVHPXWDQWVSUHYHQW1).E
DFWLYDWLRQ&RWUDQVIHFWLRQRIHPSW\S&'1$ZLWKSF'1$/DF=VHUYHGDVFRQWURO
KDIWHUWUDQVIHFWLRQFHOOVZHUHIL[HGVWDLQHGDQGVWDLQHGZLWK;JDODQGFRXQWHGLQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
HDFKZHOO9DOXHVIRUEJDOSRVLWLYHFHOOVUHSUHVHQWPHDQVRIDWOHDVWWKUHHLQGHSHQGHQW
WUDQVIHFWLRQVEDUV6(5LJKWSDQHO1)N% LVUHTXLUHGIRUFHOOXODUWUDQVIRUPDWLRQ
LQGXFHGE\RQFRJHQLF5(71,+7FHOOVZHUHWUDQVIHFWHGZLWKPFJS&'1$5(7
&5S&'1$5(707RUSF'1$5(7WRJHWKHUZLWKHPSW\S&'1$RUWKH
VXSHUUHSUHVVRUIRUPRI,N%D S&'1$,N%D 6$6$DQGJHQRPLF'1$DV
FDUULHU7UDQVIRUPHGIRFLZHUHVFRUHG GD\VDIWHUWUDQVIHFWLRQ9DOXHVUHSUHVHQW
PHDQVRIDWOHDVWWKUHHLQGHSHQGHQWWUDQVIHFWLRQVEDUV6(
$GGLWRQDOGDWDVXJJHVWVWKDWERUWH]RPLEZRXOGEHDUHDVRQDEOHDJHQWWRFRPELQHZLWK
YDQGHWDQLELQWUHDWLQJSDWLHQWVZLWKDGYDQFHG07&7KLVGDWDLQFOXGHVH[SHULPHQWVWKDWVKRZHG
WKDWERUWH]RPLELQGXFHVDSRSWRVLVLQERWK07&DQGDQDSODVWLFWK\URLGFDUFLQRPDFHOOVZLWK,&
YDOXHVZHOOZLWKLQWKHUDQJHRIFOLQLFDOO\DFKLHYDEOHFRQFHQWUDWLRQVDQGPXFKORZHUWKDQ
FRPSUDEOH,&YDOXHVIRURWKHUVROLGWXPRUPDOLJQDQFLHV7DEOH)XUWKHUPRUHWKH
FRPELQDWLRQRIERUWH]RPLEZLWKFKHPRWKHUDS\GR[RUXELFLQZDVV\QHUJLVWLF)LJXUH
7DEOH
%RUWH]RPLEVHQVLWLYLW\LQYLWUR
&HOOOLQH
7\SH
,&DWKQ0
6:
3DSLOODU\
!
13$
3DSLOODU\
!
.$7
3DSLOODU\

.$7
3DSLOODU\

)52
$QDSODVWLF

'52±
$QDSODVWLF

%+7
$QDSODVWLF

.$7
$QDSODVWLF

6:
$QDSODVWLF
!
$52
$QDSODVWLF
!
77
0HGXOODU\

'52±
0HGXOODU\

+52±
0HGXOODU\


0HGXOODU\

:52
)ROOLFXODU
!
8
*OLRPD

6:
&RORQ

/1
*OLRPD

&$.,
5HQDO
!
/1&D3
3URVWDWH




9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
&HOOOLQH
7\SH
,&DWKQ0
6.29
2YDULDQ

0LWVLDGHVHWDO-&OLQ(QGRFULQRO0HWDE
)LJXUH
),*85( 6HQVLWL]LQJHIIHFWRIERUWH]RPLEWRFRQYHQWLRQDOF\WRWR[LFFKHPRWKHUDS\LQ
WK\URLGFDUFLQRPDFHOOV6:)52DQG77FHOOVZHUHWUHDWHGZLWKGR[RUXELFLQ
ȝJPOIRUK'XULQJWKHODVWKRIWKDWWUHDWPHQWWKHFHOOVZHUHDOVRH[SRVHGWR
ERUWH]RPLEQ0RUYHKLFOH$WWKHHQGRIWKHKLQFXEDWLRQSHUFHQWFHOOGHDWK
PHDQ6'ZDVTXDQWLILHGE\077EODFNEDUVERUWH]RPLEDORQHZKLWHEDUV
GR[RUXELFLQDORQHJUD\EDUVGR[RUXELFLQERUWH]RPLE$OOH[SHULPHQWVZHUHUHSHDWHG
DWOHDVWWKUHHWLPHVDQGHDFKH[SHULPHQWDOFRQGLWLRQZDVUHSHDWHGDWOHDVWLQ
TXDGUXSOLFDWHZHOOVLQHDFKH[SHULPHQW'DWDUHSRUWHGDUHDYHUDJHYDOXHV6' RI
UHSUHVHQWDWLYHH[SHULPHQWV7K\URLGFDUFLQRPDFHOOVDUHUHODWLYHO\UHVLVWDQWWRF\WRWR[LF
FKHPRWKHUDS\EXWWUHDWPHQWZLWKDVXEWR[LFFRQFHQWUDWLRQRIERUWH]RPLEKDGDVWURQJ
VHQVLWL]LQJHIIHFWRQGR[RUXELFLQLQGXFHGFHOOGHDWK
 3URWHDVRPHLQKLELWLRQ%RUWH]RPLEDQGPLFURWXEXOHVWDELOL]DWLRQ
&OLQLFDOO\ERUWH]RPLEXVHKDVEHHQKDPSHUHGE\SHULSKHUDOQHXURWR[LFLW\RIXQH[SODLQHG
HWLRORJ\6LQFHSURWHDVRPH LQKLELWRUVDOWHUSURWHLQGHJUDGDWLRQZHVSHFXODWHGWKDWSURWHLQV
UHJXODWLQJPLFURWXEXOH07VWDELOLW\PD\EHDIIHFWHGDIWHUWUHDWPHQWDQGH[DPLQHG07
SRO\PHUL]DWLRQLQFHOOVE\FRPSDULQJWKHGLVWULEXWLRQRIWXEXOLQEHWZHHQSRO\PHUL]HG3DQG
VROXEOH6IUDFWLRQV:HREVHUYHGLQFUHDVHG07SRO\PHUL]DWLRQIROORZLQJWUHDWPHQWRI6<<
DQG.&15>QHXUREODVWRPD@+&1>QHXUDO@DQG>00@FHOOVXVLQJILYHSURWHDVRPH
LQKLELWRUVWKHEDVHOLQHSURSRUWLRQRIWRWDODWXEXOLQLQSRO\PHUL]HGIUDFWLRQVUDQJHGIURPa
DQGLQFUHDVHGWRaDIWHUWUHDWPHQWZLWKSURWHDVRPHLQKLELWRUV7DEOH,QFUHDVHG
DFHW\ODWHGDWXEXOLQDSRVWWUDQVODWLRQDOPDUNHURIVWDELOL]HG07VZDVREVHUYHGLQWKHQHXUDO
FHOOOLQHV+&1$DQG+&17DEOH&HOOF\FOHDQDO\VLVRI6<<.&15DQGFHOOV
DIWHUWUHDWPHQWVKRZHGGHFUHDVHVLQ*SKDVHZLWKaLQFUHDVHVLQWKH*0SKDVH
FRQVLVWHQWZLWKFHOOF\FOHDUUHVW,PPXQRIOXRUHVFHQWVWXGLHVRISURWHDVRPHLQKLELWRUWUHDWHGFHOOV
GLGQRWUHYHDOPLFURWXEXOHEXQGOHVLQFRQWUDVWWRSDFOLWD[HOWUHDWHGFHOOVVXJJHVWLQJ07



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
VWDELOL]DWLRQYLDDGLIIHUHQWPHFKDQLVP7KHVHGDWDSURYLGHDSODXVLEOHH[SODQDWLRQIRUWKH
QHXURWR[LFLW\REVHUYHGFOLQLFDOO\*LYHQWKDWSURWHDVRPHLQKLELWRUVVXFKDVERUWH]RPLEKDYHD
SOHWKRUDRIFHOOXODUWDUJHWVDQGHIIHFWVWKHVHUHVXOWVUDLVHWKHSRVVLELOLW\WKDWPLFURWXEXOH
VWDELOL]DWLRQFRQWULEXWHVWRF\WRWR[LFLW\DQGSURYLGHVDWHVWDEOHK\SRWKHVLVWKDWFRXOGEH
LQYHVWLJDWHGLQDQH[SORUDWRU\PDQQHULQSDWLHQWVDPSOHVREWDLQHGEHIRUHDQGDIWHUWKH
DGPLQLVWUDWLRQRIERUWH]RPLE>3URWHDVRPHLQKLELWRUVLQFUHDVHWXEXOLQSRO\PHUL]DWLRQDQG
VWDELOL]DWLRQLQWLVVXHFXOWXUHFHOOV$SRVVLEOHPHFKDQLVPFRQWULEXWLQJWRSHULSKHUDOQHXURSDWK\
DQGFHOOXODUWR[LFLW\IROORZLQJSURWHDVRPHLQKLELWLRQ@
7$%/(
3HUFHQWRI3RO\PHUL]HG7XEXOLQLQ &HOO/LQHV7UHDWHGZLWK3URWHDVRPH,QKLELWRUV
&HOO/LQH
'UXJ
&RQFHQWUDWLRQ
3RO\PHUL]HG7XEXOLQ$YHUDJHr 6WG'HY
6<<
1RQH

r 
%RUWH]RPLE
Q0
r 
0*
P0
r 
/DFWDF\VWLQ
 P0
r 
(SR[RP\FLQ
Q0
r 
36,
P0
r 
.&15
1RQH

r 
%RUWH]RPLE
Q0
r 
0*
P0
r 
/DFWDF\VWLQ
P0
r 
(SR[RP\FLQ
Q0
r 
36,
P0
r 
+&1
1RQH

r 
%RUWH]RPLE
Q0

%RUWH]RPLE
Q0
r 
0*
P0
r 
/DFWDF\VWLQ
P0

/DFWDF\VWLQ
P0

(SR[RP\FLQ
Q0

(SR[RP\FLQ
Q0

36,
P0

36,
P0
r 
7$%/(
$YHUDJH)ROG ,QFUHDVHLQ$FHW\ODWHGD7XEXOLQLQ+&1&HOOV
7UHDWHGZLWK3URWHDVRPH,QKLELWRUV
&HOO/LQH
+&1
'UXJ
&RQFHQWUDWLRQ
$FHW\ODWHGD7XEXOLQ
1RQH


%RUWH]RPLE
Q0
r 
0*
P0
r 
/DFWDF\VWLQ
P0

/DFWDF\VWLQ
P0
r 
(SR[RP\FLQ
Q0

(SR[RP\FLQ
Q0
r 
36,
P0

36,
P0
r 
1RUPDOL]HGWR*$3'+



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

6WXG\5DWLRQDOH
7KLVFOLQLFDOWULDOZLOOHYDOXDWHWKHFRPELQDWLRQRIYDQGHWDQLEDQGERUWH]RPLEFRPSRXQGVZLWK
GHPRQVWUDWHGDFWLYLW\DJDLQVW07&FHOOVLQDSKDVH,,,FOLQLFDOWULDORISDWLHQWVZLWKPDOLJQDQW
VROLGWXPRUVLQFOXGLQJ07&$FOLQLFDOWULDORIDPXOWLWDUJHWHGNLQDVHLQKLELWRUFRPELQHGZLWK
DVHFRQGWKHUDSHXWLFKDVQRWEHHQFRQGXFWHGLQWK\URLGFDQFHU,IWKHVSHFLILF DLPVRIWKHVWXG\
DUHDFKLHYHGDQDFWLYHFRPELQDWRULDOWKHUDSHXWLFUHJLPHQZLOOEHDYDLODEOHIRUWKHWUHDWPHQWRI
SDWLHQWVZLWKDPDOLJQDQWWK\URLGFDQFHUDQGSRVVLEO\RWKHUFDQFHUVDVZHOO
3UHFOLQLFDOVWXGLHVLQGLFDWHWKDWWKHFRPELQDWLRQRIERUWH]RPLE DQGYDQGHWDQLEDUHQRW
DQWDJRQLVWLF)LJXUH,QWKHH[SHULPHQWVSHUIRUPHGXVLQJDFHOOOLQHZLWKD5(7PXWDWLRQ
HVWDEOLVKHGIURPDSDWLHQWZLWKDGLDJQRVLVRI07&WKHDFWLYLW\RIWKHFRPELQDWLRQLVDWOHDVWDV
DFWLYHDVWKHPRVWDFWLYHGUXJEHLWERUWH]RPLERUYDQGHWDQLE7KHUHLVQRHYLGHQFHWKDWHLWKHU
GUXJDQWDJRQL]HVWKHHIILFDF\RIWKHRWKHUGUXJ
)LJXUH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
),*85( )RUWKHUHSUHVHQWDWLYHH[SHULPHQWVVKRZQ WK\URLGFDUFLQRPDFHOOOLQH77
FHOOVSODWHGLQZHOOGLVKHVa FHOOVSHUZHOORU FRQIOXHQF\ZHUH
JURZQIRU KUVSULRUWRUHPRYDORIPHGLD>).)%6
SHQLFLOOLQVWUHSWRP\FLQJOXWDPLQH@,QWULSOLFDWHHLWKHUQRGUXJ>PHGLD@RUGUXJVZHUH
DGGHGWRFHOOVDVIROORZVYDQGHWLQLEDORQH>VHULDOGLOXWLRQUDQJHRI 0@
ERUWH]RPLEDORQH>VHULDOGLOXWLRQUDQJHRI Q0@FRPELQDWLRQVRIWKHUDQJHRI
ERUWH]RPLEYDULRXVFRQFHQWUDWLRQVRIYDQGHWDQLE>RU0@FRPELQDWLRQVRIWKH
UDQJHRIYDQGHWLQLEYDULRXVDPRXQWVRIERUWH]RPLE>Q0@IRUDSHULRGRI
KUV$IWHUWKHVHWLPHVHLWKHUDQ076RUDQ65%DVVD\DQDO\VLVZDVSHUIRUPHGDQG,&
YDOXHVZHUHGHWHUPLQHG
7KUHHFOLQLFDOWULDOVRI=' KDYHEHHQFRPSOHWHGKRZHYHUWKHUHVXOWVKDYHQRWEHHQ
SXEOLVKHGLQSHHUUHYLHZMRXUQDOVDQGWKHGUXJKDVQRWEHHQDSSURYHGE\WKH)'$± DOWKRXJK
='YDQGHWDQLEKDVEHHQJUDQWHG)'$DQG(8RUSKDQGUXJVWDWXVDQGLVRQ)'$IDVW
WUDFNIRUDQLQGLFDWLRQLQKHUHGLWDU\PHGXOODU\WK\URLGFDQFHU'DWDIURPWKHILUVWFOLQLFDOWULDO
GHVFULEHGDERYHGHPRQVWUDWHGWKDWYDQGHWDQLEKDVVLJQLILFDQWDFWLYLW\DJDLQVW07&,Q
FRQVLGHULQJDJHQWVZKLFKPLJKWEHFRPELQHGZLWKYDQGHWDQLELQDFOLQLFDOVWXG\ERUWH]RPLELV
DSSHDOLQJIRUVHYHUDOUHDVRQV:KLOHERUWH]RPLEKDVEHHQDSSURYHGFOLQLFDOO\RQO\IRUWKH
WUHDWPHQWRI00SUHFOLQLFDOVWXGLHVLQGLFDWHVWKDWLWKDVDZLGHVSHFWUXPRIDFWLYLW\,WLVDOVRD
YHU\LQWHUHVWLQJFRPSRXQGLQWKDWLWKDVDVSHFLILFWDUJHWWKHSURWHDVRPHZKLFKFDQKDYHEURDG
FRQVHTXHQFHVUHPLQLVFHQWRIPDQ\RIRXUDFWLYH³F\WRWR[LFFRPSRXQGV´,WLVIHOW WKDWWKH
FRPELQDWLRQRIYDQGHWDQLEZLWKERUWH]RPLEKDVWKHSRWHQWLDOWREHFOLQLFDOO\HIIHFWLYHERWKLQD



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
GLVHDVHVXFKDV07&ZKHUHYDQGHWDQLEKDVDOUHDG\GHPRQVWUDWHGJUDWLI\LQJDFWLYLW\DVDVLQJOH
DJHQWDVZHOODVLQDYDULHW\RIFDQFHUVLQFOXGLQJ16&/&DQG00DPRQJRWKHUV
7KLVVWXG\VHHNVWRGHYHORSDFOLQLFDOSURWRFRORIYDQGHWDQLELQFRPELQDWLRQZLWKWKHSURWHDVRPH
LQKLELWRUERUWH]RPLEE\ILUVWSHUIRUPLQJWKHSKDVH,SRUWLRQRIWKHVWXG\WRGHWHUPLQHWKH
RSWLPDOGRVHVRIWKLVFRPELQDWLRQ:KLOHWKHWR[LFLWLHVRIYDQGHWDQLEDQGERUWH]RPLEDUHODUJHO\
QRWRYHUODSSLQJZHZRXOGSURSRVHWRDSSURDFKWKHFRPELQDWLRQFDXWLRXVO\LQWKLVSRUWLRQRIWKH
WULDO:HSURSRVHWKDWWKHVWDUWLQJGRVHIRUYDQGHWDQLEZLOOEHPJSHUGD\7KLVGRVHZDV
ZHOOWROHUDWHGE\SDWLHQWVLQWKHUHFHQWO\UHSRUWHGSKDVH,,WULDORIVLQJOHDJHQWYDQGHWDQLELQ
SDWLHQWVZLWKKHUHGLWDU\07& :HZRXOGDOVRQRWHWKDWPJZDVWKHGDLO\GRVHLQWKH
SODFHERFRQWUROOHGSKDVH,,VWXG\RI='SOXVGRFHWD[HOLQSDWLHQWVZLWKSUHYLRXVO\WUHDWHG
QRQ±VPDOOFHOOOXQJFDQFHULQZKLFKWKHSULPDU\REMHFWLYH DVLJQLILFDQWSURORQJDWLRQRI3)6
FRPSDUHGZLWKGRFHWD[HOLQUHODWLRQWRWKHSUHVSHFLILHGVLJQLILFDQFHOHYHO± ZDVUHDFKHG 7KH
ODWWHUVXJJHVWWKDWDGRVHRIPJGDLO\PD\EHVXIILFLHQWWRDFKLHYHDSKDUPDFRORJLFHIIHFW
$VIRUERUWH]RPLEZHZRXOGDUJXHWKDWWKHGDWDVXJJHVWWKDWVHYHUDOGRVHVDQGVFKHGXOHVRI
DGPLQLVWUDWLRQDUHHIILFDFLRXV,QWKLVUHJDUGZHZRXOGQRWHWKHIROORZLQJHYLGHQFH,Q
SDWLHQWVZLWK00ZHHNO\ERUWH]RPLEZDVDVHIIHFWLYHDQGPRUHFRQYHQLHQWWKDQWZLFHZHHNO\
GRVHV ,QILUVWOLQHWUHDWPHQWRISDWLHQWVZLWKDGYDQFHGVROLGWXPRUVZHHNO\ERUWH]RPLE
PJSHUVTXDUHPHWHUSOXVJHPFLWDELQHDQGFLVSODWLQZDVUHFRPPHQGHGDVWKHSKDVH,,GRVHRYHU
WZLFHZHHNO\ERUWH]RPLEEDVHGRQDVLPLODUUHVSRQVHDQGVXUYLYDORI16&/&SDWLHQWVWUHDWHG
ZLWKWZLFHZHHNO\RUZHHNO\ERUWH]RPLE± ZLWKJUHDWHUJDVWURLQWHVWLQDOWR[LFLW\DVZHOODV
P\HORVXSSUHVVLRQVHHQZLWKWKHWZLFHZHHNO\UHJLPHQ ,QSDWLHQWVZLWKDGYDQFHGVROLG
WXPRUVZLWKDQHPSKDVLVRQ16&/&ZHHNO\DQGWZLFHZHHNO\VFKHGXOHVZHUHFRPSDUHGDQG
ERWKZHUHUHFRPPHQGHGZLWKVRPHZKDWJUHDWHUWR[LFLWLHVVHHQLQWKHWZLFHZHHNO\VFKHGXOH
1RWHDZHHNO\GRVHRIPJSHUVTXDUHPHWHURQGD\VDQGZDVDGPLQLVWHUHGZLWKPJ
RISHPHWUH[HGHYHU\GD\V ,QSDWLHQWVZLWKUHODSVHGRUUHIUDFWRU\IROOLFXODUO\PSKRPD
DQGPDQWOHFHOOO\PSKRPDWKHLQYHVWLJDWRUVFRQFOXGHGWKDWZHHNO\GRVLQJPD\QRWEHDV
HIIHFWLYHDVWZLFHZHHNO\DGPLQLVWUDWLRQ :HZRXOGSURSRVHDVDVWDUWLQJSRLQWDGRVHRIPJ
SHUVTXDUHPHWHUDGPLQLVWHUHGRQGD\VDQGHYHU\GD\VZLWKHVFDODWLRQ WRPJ
SHUVTXDUHPHWHU7KHFRPELQDWLRQRIERUWH]RPLESOXVYDQGHWDQLEZLOOEHDGPLQLVWHUHGIRUD
PLQLPXPRIVL[F\FOHV$IWHUWKHFRPSOHWLRQRIWKHILUVWVL[F\FOHVGHSHQGLQJRQWROHUDELOLW\DQG
ZKHWKHURUQRWFRQWLQXHGWXPRUUHGXFWLRQLVRFFXUULQJERUWH]RPLEPD\EHFRQWLQXHGRUWKH
SDWLHQWPD\EHWUHDWHGZLWKYDQGHWDQLEDORQH7KLVDSSURDFKUHFRJQL]HVWKDWVRPHSDWLHQWVZLWK
WKLV07&PD\FRQWLQXHWKHUDS\IRUDORQJWLPHDQGDOVRFRQVLGHUVWKHGLIILFXOW\RILQGHILQLWHO\
FRQWLQXLQJWKHUDS\RQGD\V DQGHYHU\GD\V
:HWKXVSURSRVHWKHIROORZLQJ3KDVH,WULDOGHVLJQ
x /HYHOPJYDQGHWDQLEHYHU\RWKHUGD\YDQGHWDQLERQO\WR[LFLW\UHGXFWLRQ
x /HYHO PJYDQGHWDQLEGDLO\YDQGHWDQLERQO\WR[LFLW\UHGXFWLRQ
x /HYHOPJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
x /HYHO PJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
x /HYHOPJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
x /HYHOPJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
1RWHV
,IOHYHOVRUDUHHVWDEOLVKHGDVWKH07'WZRDGGLWLRQDOOHYHOVOHYHOV$DQG%ZLOOEH
WULHG



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x /HYHO$PJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
x /HYHO%PJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
7KHQ
 ,IOHYHOLVLQLWLDOO\LGHQWLILHGDVWKH07'OHYHO$RU%ZLOOEHVXEVWLWXWHGDVWKHOHYHO
UHFRPPHQGHGIRUWKHSKDVH ,,SRUWLRQRIWKHVWXG\SURYLGHGVDIHW\FDQEHGHPRQVWUDWHG
 ,IOHYHOVRUDUHLQLWLDOO\LGHQWLILHGDVWKH07'OHYHO$RU%FDQ EHVXEVWLWXWHGDVWKH
OHYHOUHFRPPHQGHGIRUWKHSKDVH,,SRUWLRQRIWKHVWXG\SURYLGHGVDIHW\FDQEH
GHPRQVWUDWHGDQGRQO\DIWHUDOOLQWHUHVWHGSDUWLHVKDYHGLVFXVVHGWKHDYDLODEOHGDWDDQGD
GHFLVLRQLVPDGHDVWRZKLFKGRVHPLJKWEHEHVWWRSXUVXH
7KHGRVHVRIERUWH]RPLEDQGWKHQYDQGHWDQLEZLOOEHLQFUHDVHGLQFRKRUWVRIWKUHHSDWLHQWV7KH
07'DQG'/7ZLOOEHGHWHUPLQHGEDVHGRQWR[LFLWLHVGXULQJWKHILUVWHLJKWZHHNVRIFRPELQHG
WKHUDS\ 7R[LFLWLHVWKDWDULVHDIWHUWKHILUVWVL[ZHHNVRIFRPELQHGWKHUDS\ZLOOEHPDQDJHG
DFFRUGLQJWRWKHIROORZLQJJXLGHOLQHVWKDWFRQVLGHUWKHSRVVLEOHGUXJUHVSRQVLEOHIRUWKHREVHUYHG
WR[LFLW\)RUDOOWR[LFLWLHVRWKHUWKDQ47FSURORQJDWLRQWKHGRVHRIVWXG\WUHDWPHQWZLOOEH
ZLWKKHOGIRUXSWRZHHNVXQWLOWKHWR[LFLW\KDVUHVROYHGWR&7&$(JUDGHRUEHWWHUSDWLHQWV
ZLOOEHZLWKGUDZQIURPWKHVWXG\LIWR[LFLW\GRHVQRWUHVROYHWR&7&$(JUDGHZLWKLQ
ZHHNV:KHQWKHWR[LFLW\UHVROYHVWR&7&$(JUDGHVWXG\WUHDWPHQWPD\EHUHVWDUWHGZLWK
DQDSSURSULDWHGRVHUHGXFWLRQGHSHQGHQWRQWKHGRVHWKDWLVEHLQJDGPLQLVWHUHGDQGWKHGUXJ
GHWHUPLQHGWREHUHVSRQVLEOHIRUWKHWR[LFLW\,IWR[LFLW\LVGHWHUPLQHGWREHVHFRQGDU\WR
YDQGHWDQLEWKHQZKHQWKHWR[LFLW\UHVROYHVWR&7&$(JUDGHYDQGHWDQLEVKRXOGEHUHVWDUWHG
DWRQHGRVHOHYHOORZHUWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\GHYHORSHGSDWLHQWV
UHFHLYLQJWKHVWDUWLQJGRVHRIPJYDQGHWDQLEZLOOKDYHWKHLUWKHUDS\GLVFRQWLQXHG,IWR[LFLW\
LVGHWHUPLQHGWREHVHFRQGDU\WRERUWH]RPLEWKHQZKHQWKHWR[LFLW\UHVROYHVWR&7&$(JUDGH
ERUWH]RPLEVKRXOGEHUHVWDUWHGDWRQHGRVHOHYHOORZHUWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKH
WR[LFLW\GHYHORSHGSDWLHQWVUHFHLYLQJWKHVWDUWLQJGRVHRIPJP ERUWH]RPLE ZLOOKDYH
ERUWH]RPLEGLVFRQWLQXHGEXWFDQFRQWLQXHWRUHFHLYHYDQGHWDQLEDORQH,IWKHGUXJUHVSRQVLEOH
IRUWKHWR[LFLW\FDQQRWEHGHWHUPLQHGWKHQZKHQWKHWR[LFLW\UHVROYHVWR&7&$(JUDGHERWK
YDQGHWDQLEDQGERUWH]RPLEVKRXOGEHUHVWDUWHGDWRQHGRVHOHYHOORZHUIRUERWKGUXJVWKDQWKDW
DGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\GHYHORSHG,IWKHWR[LFLW\GRHVQRWUHFXUDWWKHUHGXFHGGRVHV
RIERWKYDQGHWDQLEDQGERUWH]RPLEWKHGRVHRIYDQGHWDQLEPD\EHLQFUHDVHGRQHGRVHOHYHOWR
WKDWZKLFKZDVEHLQJDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\GHYHORSHG,IWR[LFLW\UHFXUVIROORZLQJ
WKLVLQFUHDVHERWKYDQGHWDQLEDQGERUWH]RPLEDUHKHOG:KHQWKHWR[LFLW\UHVROYHVWR&7&$(
JUDGHERUWH]RPLELVFRQWLQXHGDWWKHVDPHGRVHEXWYDQGHWDQLELVUHVWDUWHGDWRQHGRVHOHYHO
ORZHUWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\UHFXUUHG1RWHWKDQRQFHWKH07'LV
LGHQWLILHGWKHFRPELQDWLRQZLOOEHH[DPLQHGLQDUDQGRPL]HGSKDVH,, DQGWKDWWKHVHSDWLHQWVZLOO
UHFHLYHWKHGRVHUHFRPPHQGHGIRU3KDVH,,WULDOV,QWKHVHSDWLHQWVWKHJXLGHOLQHVGHVFULEHGLQWKH
SUHFHGLQJVHQWHQFHVDSSO\
7KXVWKHGHVLJQFRQVLGHUVWKHIDFWWKDWGRVHVRIPJYDQGHWDQLEDSSHDUWREHDFWLYHLQVRPH
SDWLHQWVZLWK07&DQGWKHIDFWWKDWLQDUDQGRPL]HGSODFHERFRQWUROOHGSKDVH,,VWXG\RI
YDQGHWDQLESOXVGRFHWD[HOLQSUHYLRXVO\WUHDWHG16&/&WKHSULPDU\REMHFWLYHZDVDFKLHYHGZLWK
YDQGHWDQLEPJSOXVGRFHWD[HO7KHHYLGHQFHLQGLFDWHVWKDWRYHUDEURDG UDQJHLQFUHDVLQJ
GRVHVUHVXOWLQLQFUHDVHGSURWHDVRPHLQKLELWLRQ
5DWLRQDOHIRUWUDQVODWLRQDOVWXGLHV
5(7VHTXHQFLQJDQGDVVHHVPHQWRIWKHHIIHFWRIYDQGHWDQLERQ5(7DFWLYLW\DQGWKHHIIHFWRI
ERUWH]RPLERQPLFURWXEXOHVZLOOEHTXHULHG7KHVHDUHMXVWLIHGDVIROORZV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 ,QSDWLHQWVZLWKDGLDJQRVLVRI07&ZHSURSRVHWRH[DPLQHLQDQH[SORUDWRU\DQDO\VLVWKH
FRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWRWKHUDS\$VQRWHGDERYHLQWKHKHUHGLWDU\
IRUPVRI07&WKHUHLVDFRUUHODWLRQEHWZHHQJHQRW\SHDQGSKHQRW\SHERWKDVUHJDUGVWKH
FOLQLFDOH[SUHVVLRQRIGLVHDVHVLQWKHV\QGURPHVDQGWKHELRORJLFDODJJUHVVLYHQHVVRIWKH
07&+RZHYHUWRGDWHDFRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWRWKHUDS\KDVQRW
EHHQHVWDEOLVKHG (YLGHQFHH[LVWVWKDW5(7LQKLELWLRQOHDGVWRJURZWKLQKLELWLRQRUDSRSWRVLV
LQ07&FHOOV+RZHYHULQGLYLGXDO5(7PXWDWLRQVHVSHFLDOO\WKRVHLQYROYLQJWKH
LQWUDFHOOXODUW\URVLQHNLQDVHGRPDLQDUHOLNHO\WRKDYHGLIIHUHQWVHQVLWLYLWLHVWR7.,V$5(7
PXWDWLRQDWFRGRQDVVRFLDWHGPRVWO\ ZLWK)07&ZDVUHFHQWO\VKRZQWREHDVVRFLDWHG
ZLWKPDUNHGLQYLWURUHVLVWDQFHWRYDQGHWDQLE,& aX0ZKHUHDVDVHFRQG7.,
VRUDIHQLELQKLELWHGWKHVHPXWDQWVZLWK,& LQWKH Q0UDQJHYVQ0IRUZW5(7
7KXVZHSURSRVHDVDVHFRQGDU\REMHFWLYHWRH[DPLQHLQDQH[SORUDWRU\DQDO\VLVWKH
FRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWRWKHUDS\LQDOOSDWLHQWVZLWK07&7R
DFFRPSOLVKWKLVZHSURSRVHWRSHUIRUP5(7JHQHPXWDWLRQDODQDO\VLVLQWXPRUDQG
SHULSKHUDOEORRGPRQRQXFOHDUFHOOVSULRUWRWUHDWPHQW7KHWXPRUWREHDVVHVVHGZRXOGPRVW
OLNHO\EHWLVVXHWKDWKDVEHHQSUHYLRXVO\REWDLQHGRUHLWKHUEHREWDLQHGDWWKHWLPHRIVWXG\
HQUROOPHQW
 ,QSDWLHQWVZLWKDGLDJQRVLVRI07&ZHSURSRVHWRH[DPLQHWKHH[WHQWLIDQ\RI5(7
LQKLELWLRQIROORZLQJWKHDGPLQLVWUDWLRQRIYDQGHWDQLE6SHFLILDOO\ZHSURSRVHDVDQ
H[SORUDWRU\DQDO\VLVWRH[DPLQHWKHH[WHQWRI5(7LQKLELWLRQDQLPSRUWDQWSKDUPDFRG\QDPLF
HQGSRLQWQRW\HWH[SORUHGLQDQ\FOLQLFDOWULDO,WVKRXOGEHQRWHGWKDWGHVSLWHWKHIDFWWKDW
RYHUSDWLHQWVZLWK07&KDYHEHHQWUHDWHGZLWKYDQGHWDQLEWRGDWHDQGLWLVVWDWHGWKDW
YDQGHWDQLELVDFWLYHLQWKLVGLVHDVHE\YLUWXHRILWVDELOLW\WRLQKLELW5(7QRWDVLQJOHSDWLHQW
KDVKDGWKHH[WHQWRI5(7LQKLELWLRQH[DPLQHGLQWKHLUWXPRUV ,Q 07&SDWLHQWVWKHILUVW
ELRSV\ZRXOGEHREWDLQHGSULRUWRWKHVWDUWRIWKHUDS\ZKLOHWKHVHFRQGELRSV\ZRXOGEH
REWDLQHGDIWHUGD\VRIYDQGHWDQLEDGPLQLVWUDWLRQ7KHSXUSRVHRIWKHVHELRSVLHVZRXOGEH
WRH[DPLQHWKHH[WHQWRI5(7LQKLELWLRQ6HH$SSHQGL[$1RWH5(7PXWDWLRQVZLOOQRWEH
DVVHVVHGLQUHDOWLPH
 ,QSDWLHQWVZLWKRXWDGLDJQRVLVRI07&ZHSURSRVHDVDQH[SORUDWRU\DQDO\VLVWRSHUIRUPD
ELRSV\SULRUWRWKHVWDUWRIWKHUDS\DQGDVHFRQGELRSV\DIWHUWKHGD\ERUWH]RPLEWKHVDPH
GD\RURQGD\EXWIROORZLQJWKHGRVHRIERUWH]RPLEDGPLQLVWUDWLRQWRGHWHUPLQHZKHWKHU
PLFURWXEXOHVWDELOL]DWLRQKDVRFFXUUHG'HPRQVWUDWLRQRIWKHODWWHUZRXOGSURYLGHLQYLYR
GRFXPHQWDWLRQRIWKHLQYLWUR REVHUYDWLRQVZHKDYHPDGHGHPRQVWUDWLQJWKHRFFXUUHQFHRI
PLFURWXEXOHVWDELOL]DWLRQIROORZLQJSURWHDVRPHLQKLELWLRQ7KHODWWHUZRXOGSURYLGHHYLGHQFH
VXSSRUWLQJWKHWKHVLVWKDWPLFURWXEXOHVWDELOL]DWLRQPLJKWFRQWULEXWHWRERUWH]RPLE
F\WRWR[LFLW\DQGDOVRSURYLGHXQHTXLYRFDOHYLGHQFHRIDQHIIHFWRIERUWH]RPLERQWKHFDQFHU
FHOOV± DSKDUPDFRG\QDPLFHIIHFW,WLVSUHIHUDEOHWRREWDLQWKHVHELRSVLHVGXULQJWKHILUVW
F\FOHRIWKHVWXG\+RZHYHUEHFDXVHRFFDVLRQDOO\ELRSVLHVFDQQRWEHVFKHGXOHGWRFRLQFLGH
ZLWKWKHVWDUWRIWKHVWXG\WKHVHELRSVLHVPD\EHREWDLQHGEHIRUH&\FOHGD\ERUWH]RPLE
DQGRQGD\VRUGD\DIWHUWKHGD\ERUWH]RPLEGRVH DVFKHGXOHWKDWRXUH[SHULHQFH
LQGLFDWHVVKRXOGQRWPHDVXUDEO\DIIHFWWKHUHVXOWV
3RVLWLYHDWWULEXWHVRI07&DVDSODWIRUPIRUGUXJGHYHORSPHQW
 6XUJHU\LVWKH RQO\HIIHFWLYHWKHUDS\
 7KHUHDUHQRDFFHSWHGDGMXYDQWWKHUDSLHV
 7KHUHDUHRQO\OLPLWHGRSWLRQVIRUSDWLHQWVZLWKGLVVHPLQDWHGGLVHDVH
 &DOFLWRQLQLVDQH[TXLVLWHO\VHQVLWLYHKRUPRQDOELRPDUNHU&($LVDVHFRQGDU\PDUNHU



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 ,WKDVRUSKDQGLVHDVHVWDWXV
 ,W LVDWWUDFWLYHEHFDXVHRIDQRXWVWDQGLQJPROHFXODUWDUJHWWKH5(7SURWRRQFRJHQH
6LJQLILFDQWH[SHULPHQWDOSURRIRISULQFLSOHH[LVWVWKDW5(7LQKLELWLRQOHDGVWRJURZWK
LQKLELWLRQRUDSRSWRVLVLQ07&FHOOV
&RQVLGHUDWLRQVIRUWULDOVLQ07&
 $OWKRXJKYDQGHWDQLE KDVEHHQVKRZQWRKDYHDFWLYLW\LQ07&WKHPROHFXODUEDVLVIRUZK\
LQWULQVLFUHVLVWDQFHH[LVWVRUDFTXLUHGUHVLVWDQFHGHYHORSVKDVQRWEHHQH[SORUHG3UHOLPLQDU\
HYLGHQFHWKDWLQGLYLGXDO5(7PXWDWLRQVHVSHFLDOO\WKRVHLQYROYLQJWKHLQWUDFHOOXODUW\URVLQH
NLQDVHGRPDLQDUHOLNHO\WRKDYHGLIIHUHQWVHQVLWLYLWLHVWR7.,VVXSSRUWVFOLQLFDOWULDOVWKDW
H[DPLQHJHQHWLFVRISDWLHQWVHQUROOHGRQWULDO6LPLODUO\WULDOVZLWKVHTXHQWLDOELRSVLHVWR
GLVFHUQWKHPROHFXODUEDVLVRIDFTXLUHGUHVLVWDQFHDUHQHHGHG
 $FWLYDWHG5(7SURYLGHVDKRVWRIGRFNLQJVLWHVWRWULJJHUDFWLYDWLRQRIDQXPEHURIRWKHU
NLQDVHSDWKZD\VLQFOXGLQJ(5.-1.S0$3.DQG)$.8QGHUVWDQGLQJWKHUHODWLYH
FRQWULEXWLRQVRIWKHVHGLIIHUHQWVLJQDOLQJRXWSXWVRI5(7LQ07&FHOOVZLOOEH LPSRUWDQWLQ
DVVHVVLQJWKHHIILFDF\RI5(7NLQDVHLQKLELWRUV$JDLQWKLVVXSSRUWVFOLQLFDOWULDOVWKDW
H[DPLQHJHQHWLFVRISDWLHQWVHQUROOHGRQWULDOHYHQLQDQH[SORUDWRU\PDQQHU
$UJXPHQWVLQIDYRURIFRPELQDWLRQWULDOV
 7RGDWHQRVLQJOH7.LQKLELWRUKDVEHHQDEOHWREULQJDERXWDVXVWDLQHGFRPSOHWHUHVSRQVHOHW
DORQHDFXUHLQSDWLHQWVZLWKVROLGWXPRUV9DQGHWDQLE KDVEHHQVKRZQWRKDYHDFWLYLW\LQ
07&EXWWKHUHLVPXFKURRPIRULPSURYHPHQW
 7KHH[SHULHQFHRIXQVXFFHVVIXO3KDVH,,,FRPELQDWLRQWULDOVLQFOXGLQJ(*)5LQKLELWRUVSOXV
FKHPRWKHUDS\LQ16&/&VXJJHVWVWKHDQVZHUPD\QRWQHFHVVDULO\DOZD\VOLHLQSDLULQJ
WDUJHWHGDQGF\WRWR[LFDJHQWVDQGXQGHUVFRUHWKHQHHGWRLQYHVWLJDWHFRPELQDWLRQVRIWDUJHWHG
WKHUDSLHV
 $VQRWHGDFWLYDWHG5(7WULJJHUVWKHDFWLYDWLRQRIQXPHURXVRWKHUNLQDVHSDWKZD\VLQFOXGLQJ
(5.-1.S0$3.)$.DQG1)N%7KHDFWLYDWLRQRIWKHVHSDWKZD\VVXSSRUWVWKH
FRQGXFWRIFOLQLFDOWULDOVXVLQJUDWLRQDOGUXJFRPELQDWLRQV± LQFOXGLQJGUXJVWDUJHWLQJPRUH
WKDQRQHSDWKZD\
3KDVH,7ULDO5HVXOWV
7KHDFFUXDOWR3KDVH,LVFRPSOHWHDQGWKH 07'KDVEHHQGHWHUPLQHGWREH'RVH/HYHO
9DQGHWDQLEPJRUDOO\GDLO\DQGERUWH]RPLEPJP,9GD\VRIGD\F\FOHV
7KHILUVWSDWLHQWZDVHQUROOHGRQDQGWKHILQDOSDWLHQWZDVHQUROOHG7ZHQW\RQH
SDWLHQWVZHUHHQUROOHGWKUHHZHUHDVVLJQHGWR'RVH/HYHODQGVL[HDFKWR'RVH/HYHOV
DQG6HYHQWHHQSDWLHQWVKDGPHWDVWDWLFRUDGYDQFHGPHGXOODU\WK\URLGFDQFHU07&7KH
VLQJOH'/7LQWKHVWXG\ZDV*UDGHWKURPERF\WRSHQLDDW'RVH/HYHO7KHPRVWFRPPRQ
$(VIHOWWREHDWOHDVWSRVVLEO\UHODWHGWRVWXG\GUXJVZHUHSURORQJHG47FWUDQVDPLQDVH
HOHYDWLRQWKURPERF\WRSHQLDGLDUUKHDUDVKVNLQFKDQJHV
K\SHUWHQVLRQ IDWLJXHOHXNRSHQLDQHXURSDWK\0RVWRIWKHWR[LFLWLHV
ZHUHJUDGHRU7KHPRVWFRPPRQ*UDGHWR[LFLWLHVZHUHO\PSKRSHQLD
K\SHUWHQVLRQIDWLJXHGLDUUKHDWKURPERF\WRSHQLDDQG
K\SHUNDOHPLD7RGDWHWKHUHKDYHEHHQIRXU 35VLQDVVHVVDEOHSDWLHQWVZLWK07&
6'IRU!PRQWKVLVWKHEHVWUHVSRQVHLQSDWLHQWV2QH07&SDWLHQWKDG3'DVKLV
EHVWUHVSRQVH7RGDWHSDWLHQWVZLWK35RU6'!PRQWKVKDYHDOOKDGGHFUHDVHVRIFDOFLWRQLQ
E\! &KDQJHLQ&($GLGQRWFRUUHODWHZLWKUHVSRQVH
3KDVH,,7ULDO'HVLJQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
,QDFFRUGDQFHZLWKWKHSURWRFRODQGWKHUHVXOWVRIWKH3KDVH,SRUWLRQRIWKHVWXG\WKH3KDVH,,
GHVLJQLVWKXVSURSRVHG
x
$ UDQGRPL]HGSKDVH,,WULDOFRPSDULQJWKHDFWLYLW\RIWKHFRPELQDWLRQRIERUWH]RPLESOXV
YDQGHWDQLEZLWKYDQGHWDQLEDORQH>UDQGRPL]DWLRQ SDWLHQWV@
x
7KH3KDVH,,GRVHLVHVWDEOLVKHGDWWKH3KDVH, 07''RVH/HYHOPJYDQGHWDQLEGDLO\
PJPERUWH]RPLERQGD\V	HYHU\GD\V IRUWKHFRPELQDWLRQDUPYV
PJYDQGHWDQLEGDLO\IRUWKHVLQJOHDJHQWDUP

(/,*,%,/,7<$66(660(17$1'(152//0(17

(OLJLELOLW\&ULWHULD

,QFOXVLRQ&ULWHULD
 3DWKRORJLFFRQILUPDWLRQRIFDQFHUE\WKH/DERUDWRU\RI3DWKRORJ\1&,
 3KDVH, 'LDJQRVLVRIUHFXUUHQWPHWDVWDWLFRUSULPDU\XQUHVHFWDEOHVROLGWXPRUWKDWGRHV
QRWKDYHFXUDWLYHVWDQGDUGWUHDWPHQW
3KDVH,, 'LDJQRVLVRIUHFXUUHQWPHWDVWDWLFRUSULPDU\XQUHVHFWDEOHPHGXOODU\WK\URLG
FDQFHU07&
 0HDVXUDEOHGLVHDVHDWSUHVHQWDWLRQ(LWKHUE\5(&,67RUE\PHDVXUHPHQWRIVHUXP
PDUNHUVFDOFLWRQLQ&($36$RU&$LQWKHGRVHILQGLQJSRUWLRQRIWKHVWXG\
ZLWKGLVHDVHPHDVXUDEOHE\5(&,67UHTXLUHGRQO\LQWKHSKDVH,,FRKRUW
 $OLIHH[SHFWDQF\RIDWOHDVWPRQWKVDQG(&2*SHUIRUPDQFHVWDWXV± 
 $JH\HDUV
 /DVWGRVHRIFKHPRWKHUDS\RUH[SHULPHQWDOWKHUDS\PRUHWKDQZHHNVZHHNVLQWKH
FDVHRIQLWURVRXUHDSULRUWRHQUROOPHQWGDWHXQOHVVWKHODVWWKHUDS\FRQVLVWHGRIDQRUDO
DJHQWZKRVHDYHUDJHKDOIOLIHLVNQRZQWREHOHVVWKDQKRXUVLQZKLFKFDVHRQO\
ZHHNVQHHGWRKDYHHODSVHG5HJDUGOHVVRIWKHWKHUDS\DQ\WR[LFLW\JUHDWHUWKDQ
&7&$(JUDGHIURPSUHYLRXVDQWLFDQFHUWKHUDS\PXVWKDYHEHHQUHVROYHG
 /DVWUDGLRWKHUDS\WUHDWPHQWZHHNVSULRUWRVWDUWLQJWUHDWPHQWZLWKWKLVSURWRFRO ± ZLWK
WKHH[FHSWLRQRISDOOLDWLYHUDGLRWKHUDS\± DQGWKHUHPXVWEHVLWHVRIPHDVXUDEOHGLVHDVH
WKDWGLGQRWUHFHLYHUDGLDWLRQ
 2UJDQDQGPDUURZIXQFWLRQDVGHILQHG
x
WRWDOELOLUXELQ[XSSHUOLPLWRIUHIHUHQFHUDQJH8/55XQOHVVWKHSDWLHQWPHHWV WKH
FULWHULDIRU*LOEHUW¶V6\QGURPH
x
DODQLQHDPLQRWUDQVIHUDVH$/7DVSDUWDWHDPLQRWUDQVIHUDVH$67DQGDONDOLQH
SKRVSKDWDVH$/3DOOWKUHH[8/55RU[8/55LIMXGJHGE\WKHLQYHVWLJDWRUWR
EHUHODWHGWROLYHUPHWDVWDVHV
x
VHUXPFUHDWLQLQH[8/55RUFUHDWLQLQHFOHDUDQFHP/PLQXWHFDOFXODWHGE\
&RFNFURIW*DXOWIRUPXODRUPHDVXUHGLQDWLPHGXULQHFROOHFWLRQ
x
VHUXPFDOFLXPEHORZWKH&7&$(JUDGHXSSHUOLPLWPJG/RUPPRO/,Q
FDVHVZKHUHWKHVHUXPFDOFLXPLVEHORZWKHQRUPDOUDQJHWKHFDOFLXPDGMXVWHGIRU
DOEXPLQLVFDOFXODWHGDQGVXEVWLWXWHGIRUWKHPHDVXUHGYDOXH
x
6HUXPSRWDVVLXPJUHDWHUWKDQWKH//1DQGPPRO/
x
6HUXPPDJQHVLXPJUHDWHUWKDQWKH//1DQGPJG/RUPPRO/
x
DEVROXWHQHXWURSKLOFRXQWPP



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x
SODWHOHWFRXQWPP
x
37VHFRQGVDERYH8/1DQG377VHFRQGVDERYH8/1
 $ELOLW\WRXQGHUVWDQGDQGVLJQDQLQIRUPHGFRQVHQWGRFXPHQW
 3URYLVLRQRILQIRUPHGFRQVHQWSULRUWRDQ\VWXG\UHODWHGSURFHGXUHV
 1HJDWLYHSUHJQDQF\WHVWIRUZRPHQRIFKLOGEHDULQJSRWHQWLDO
 $ELOLW\DQGZLOOLQJQHVVWRIROORZWKHJXLGHOLQHVRIWKHFOLQLFDOSURWRFROLQFOXGLQJYLVLWV
WR1&,%HWKHVGD0DU\ODQGIRUWUHDWPHQWDQGIROORZXSYLVLWV
 %HFDXVHWKHHIIHFWVRIFKHPRWKHUDS\RQWKHGHYHORSLQJKXPDQIHWXVDUHSRWHQWLDOO\
KDUPIXOIHPDOHSDWLHQWVPXVWEHRQH\HDUSRVWPHQRSDXVDOVXUJLFDOO\VWHULOHRUXVLQJ
DQDFFHSWDEOHPHWKRGRIFRQWUDFHSWLRQGXULQJDQGFRQWLQXHGDIWHUWKHODVWGRVHRIVWXG\
PHGLFDWLRQVRUDOFRQWUDFHSWLYHVEDUULHUPHWKRGVDSSURYHGFRQWUDFHSWLYHLPSODQW
ORQJWHUPLQMHFWDEOHFRQWUDFHSWLRQLQWUDXWHULQHGHYLFHRUWXEDOOLJDWLRQ0DOHSDWLHQWV
PXVWEHVXUJLFDOO\VWHULOHRUXVLQJDQDFFHSWDEOHPHWKRGRIFRQWUDFHSWLRQGXULQJWKHLU
SDUWLFLSDWLRQLQWKLVVWXG\&RQWUDFHSWLYHXVHZLOOFRQWLQXHIRUDWOHDVWIRXU PRQWKV
DIWHUWKHODVWGRVHRIVWXG\PHGLFDWLRQ

([FOXVLRQ&ULWHULD
 3DWLHQWVZLWKFDQFHUSRWHQWLDOO\FXUDEOHE\VXUJLFDOH[FLVLRQDORQHRUSDWLHQWVZKRKDYH
QRWUHFHLYHGWKHUDS\WKDWPLJKWEHFRQVLGHUHGVWDQGDUGDQGSRWHQWLDOO\FXUDEOH
 (YLGHQFHRIVHYHUHRUXQFRQWUROOHGV\VWHPLFGLVHDVHRUDQ\FRQFXUUHQWFRQGLWLRQ±
LQFOXGLQJEXWQRWOLPLWHGWRV\PSWRPDWLFFRQJHVWLYHKHDUWIDLOXUHXQVWDEOHDQJLQD
SHFWRULVXQVWDEOHK\SHUWHQVLRQVHL]XUHGLVRUGHURUSV\FKLDWULFLOOQHVV± ZKLFKLQWKH
,QYHVWLJDWRU¶VRSLQLRQPDNHVLWXQGHVLUDEOHIRUWKHSDWLHQWWRSDUWLFLSDWHLQWKHWULDORU
ZKLFKZRXOGMHRSDUGL]HFRPSOLDQFHZLWKWKHSURWRFRO
 8QWUHDWHGEUDLQPHWDVWDVHVRUORFDOWUHDWPHQWRIEUDLQPHWDVWDVHVZLWKLQWKHODVW
PRQWKVGXHWRWKHSRRUSURJQRVLVRIWKHVHSDWLHQWVDQGGLIILFXOW\DVFHUWDLQLQJWKHFDXVH
RIQHXURORJLFWR[LFLWLHV
 'XULQJ3KDVH,,HQUROOPHQW3ULRUWKHUDS\ZLWKYDQGHWDQLE
 :RPHQZKRDUHFXUUHQWO\SUHJQDQWRUEUHDVWIHHGLQJGXHWRWKHSRVVLEOHDGYHUVHHIIHFWV
RQWKHGHYHORSLQJIHWXVDQGLQIDQWV
 7KHSUHVHQFHRIDVHFRQGPDOLJQDQF\ZLWKLQWKHODVW\HDUVRWKHUWKDQVTXDPRXVFHOO
FDUFLQRPDRIWKHVNLQRULQVLWXFHUYLFDOFDQFHUEHFDXVHLWZLOOFRPSOLFDWHWKHSULPDU\
REMHFWLYHRIWKHVWXG\ &DQFHUVXUYLYRUVZKRKDYHEHHQIUHHRIGLVHDVHIRUDWOHDVWWZR
\HDUVFDQEHHQUROOHGLQWKLVVWXG\
 7KHUHLVRQHRWKHUH[FHSWLRQ WRWKHH[FOXVLRQRIVHFRQGDU\PDOLJQDQFLHV0(1
SDWLHQWVZLWKFRQFXUUHQWPHGXOODU\WK\URLGFDQFHUDQGSKHRFKURPRF\WRPDPD\EH
HQUROOHGDWWKHGLVFUHWLRQRIWKH3ULQFLSDO,QYHVWLJDWRU ,QWKLVFDVHUHVSRQVHGDWDZLOO
QRWEHXVHGDVDPHDVXUHRIWKHSULPDU\HQGSRLQWEXWGDWDZLOOFRQWLQXHWREH
FROOHFWHGIRUWKHVHFRQGDU\REMHFWLYHV
 3DWLHQWVZLWKHYLGHQFHRIDEOHHGLQJGLDWKHVLVWKDWFDQQRWEHFRUUHFWHGZLWKVWDQGDUG
WKHUDS\RUIDFWRUUHSODFHPHQW



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 $Q\XQUHVROYHGWR[LFLW\JUHDWHUWKDQ&7&$(JUDGHH[FHSWDORSHFLDIURPSUHYLRXV
DQWLFDQFHUWKHUDS\3DWLHQWVZLWKJUDGHQHXURSDWK\ZLOOEHHYDOXDWHGRQDFDVHE\
FDVHEDVLVIRUHQWU\LQWRVWXG\%DVHOLQHFRQGLWLRQVZLOOEHWDNHQLQWRFRQVLGHUDWLRQ
 0DMRUVXUJHU\ZLWKLQZHHNVRULQFRPSOHWHO\KHDOHGVXUJLFDOLQFLVLRQEHIRUHVWDUWLQJ
VWXG\WKHUDS\
 &OLQLFDOO\VLJQLILFDQWFDUGLRYDVFXODUHYHQWHJP\RFDUGLDOLQIDUFWLRQVXSHULRUYHQD
FDYDV\QGURPH69&1HZ<RUN+HDUW$VVRFLDWLRQ1<+$FODVVLILFDWLRQRIKHDUW
GLVHDVHVHH$SSHQGL[&ZLWKLQPRQWKVEHIRUHHQWU\RUSUHVHQFHRIFDUGLDF
GLVHDVHWKDWLQWKHRSLQLRQRIWKH,QYHVWLJDWRULQFUHDVHVWKHULVNRIYHQWULFXODU
DUUK\WKPLD
 +LVWRU\RIDUUK\WKPLDPXOWLIRFDOSUHPDWXUHYHQWULFXODUFRQWUDFWLRQV39&VELJHPLQ\
WULJHPLQ\YHQWULFXODUWDFK\FDUGLDRUXQFRQWUROOHGDWULDOILEULOODWLRQZKLFKLV
V\PSWRPDWLFRUUHTXLUHVWUHDWPHQW&7&$(JUDGHRUDV\PSWRPDWLFVXVWDLQHG
YHQWULFXODUWDFK\FDUGLD$WULDOILEULOODWLRQFRQWUROOHGRQPHGLFDWLRQ LVQRWH[FOXGHG
 +LVWRU\ZLWKLQWKHODVWPRQWKVRUSUHVHQFHRIVWURNHFHUHEURYDVFXODUDFFLGHQW
 47FSURORQJDWLRQZLWKRWKHUPHGLFDWLRQV,IWKHPHGLFDWLRQFDQEHGLVFRQWLQXHGDQGDQ
DOWHUQDWLYHPHGLFDLWRQVWDUWHGWKDWGRHVQRWFDXVH47FSURORQJDWLRQWKHSDWLHQWZRXOG
EHHOLJLEOH,IQRDOWHUQDWLYHPHGLFDWLRQLVDYDLODEOHDQGWKHPHGLFDWLRQFDQQRWEH
GLVFRQWLQXHGIRUPHGLFDOUHDVRQVWKHQWKHSDWLHQWZRXOGQRWEHHOLJLEOH
 &RQJHQLWDOORQJ47V\QGURPHRUVWGHJUHHUHODWLYHZLWKXQH[SODLQHGVXGGHQGHDWK
XQGHU\HDUVRIDJH
 3UHVHQFHRIOHIWEXQGOHEUDQFKEORFN/%%%
 47FZLWK%D]HWW¶VFRUUHFWLRQWKDWLVQRWPHDVXUDEOHRUPVHFRQVFUHHQLQJ(&*
1RWH,IDSDWLHQWKDVD47FLQWHUYDOPVHFRQVFUHHQLQJ(&*WKHVFUHHQ(&*
PD\EHUHSHDWHGWZLFHDWOHDVWKRXUVDSDUW7KHDYHUDJH47FIURPWKHWKUHH
VFUHHQLQJ(&*VPXVWEHPVHF LQRUGHUIRUWKHSDWLHQWWREHHOLJLEOHIRUWKHVWXG\
3DWLHQWVZKRDUHUHFHLYLQJDGUXJWKDWKDVDULVNRI47FSURORQJDWLRQVHH$SSHQGL[&
DUHH[FOXGHGLI47FLVPVHF
 &RQFXUUHQWPHGLFDWLRQWKDWPD\FDXVH47FSURORQJDWLRQRULQGXFH7RUVDGHVGH3RLQWHV
7KRVHPHGLFDWLRQVLQ*URXS2QHRI$SSHQGL[&ZLOOQRWEHDOORZHG7KRVH
PHGLFDWLRQVLQ*URXS7ZRRI$SSHQGL[&ZLOOEHDOORZHG
 +\SHUWHQVLRQQRWFRQWUROOHGE\PHGLFDOWKHUDS\V\VWROLFEORRGSUHVVXUHJUHDWHUWKDQ
PP+JRUGLDVWROLFEORRGSUHVVXUHJUHDWHUWKDQPP+J
 &XUUHQWO\DFWLYHXQFRQWUROOHGGLDUUKHD&7&$(*UDGHWKDWPD\DIIHFWWKHDELOLW\RI
WKHSDWLHQWWRDEVRUEWKHYDQGHWDQLERUWROHUDWHGLDUUKHD$QWLGLDUUKHDPHGLFDWLRQVDUH
DOORZHGLQSDWLHQWVZLWKFKURQLFGLDUUKHD
 &RQFRPLWDQWPHGLFDWLRQVWKDWDUHSRWHQWLQGXFHUVULIDPSLFLQULIDEXWLQSKHQ\WRLQ
FDUEDPD]HSLQHSKHQREDUELWDODQG6W-RKQ¶V:RUWRI&<3$IXQFWLRQ
 0DMRUVXUJHU\ZLWKLQZHHNVRULQFRPSOHWHO\KHDOHGVXUJLFDOLQFLVLRQEHIRUHVWDUWLQJ
VWXG\PHGLFDWLRQV%LRSVLHVSRUWSODFHPHQWVDQGGHQWDOZRUNDUHH[DPSOHVRI
DFFHSWDEOHQRQPDMRUVXUJHU\ZLWKLQWKHZHHNWLPHIUDPH
 ,QDELOLW\WRWDNHRUDOPHGLFDWLRQVIRUZKDWHYHUUHDVRQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

5HVHDUFK(OLJLELOLW\(YDOXDWLRQ
3K\VLFDOH[DPLQDWLRQVKRXOGEHSHUIRUPHGZLWKLQKRXUVSULRUWRHQUROOPHQWRQWKHWULDO
XQOHVVRWKHUZLVHVWDWHG
x
+,6725<$1'3+<6,&$/(;$0,1$7,21 LQFOXGLQJYLWDOVLJQVZLWKEORRGSUHVVXUHKHLJKW
ZHLJKW(&2*SHUIRUPDQFHVWDWXVGRFXPHQWDWLRQRISDOSDEOHPHDVXUDEOHGLVHDVHORQJHVW
GLDPHWHUDQGORFDWLRQDQGDGHVFULSWLRQRIEDVHOLQHVLJQVDQGV\PSWRPVLVUHTXLUHG$
IDPLO\KLVWRU\RIHQGRFULQHQHRSODVLDVKRXOGDOVREHUHFRUGHG
x
'DLO\VWRROIUHTXHQF\RYHUWKHSULRUGD\VDQGFRQVLVWHQF\IRUPHGORRVHRUSDUWLDOO\
IRUPHGZDWHU\VKRXOGEHGRFXPHQWHG7KHSDWLHQWGLDU\$SSHQGL[%FDQEHXVHGWR
FROOHFWGDLO\VWRROKLVWRU\GXULQJWKHSUHWUHDWPHQWHYDOXDWLRQSHULRG
x
3UHWUHDWPHQWEORRGWHVWV VKRXOGEHSHUIRUPHGZLWKLQKRXUVSULRUWRHQUROOPHQWRQWKH
WULDOXQOHVVRWKHUZLVHVWDWHG
x
+(0$72/2*<FRPSOHWHEORRGFRXQWGLIIHUHQWLDOSODWHOHWFRXQW37377
x
&+(0,675,(6 $/7$67DONDOLQHSKRVSKDWDVHELOLUXELQWRWDODQGGLUHFW%81FUHDWLQLQH
HOHFWURO\WHVFDOFLXPPDJQHVLXPSKRVSKRUXVXULFDFLGWRWDOSURWHLQDQGDOEXPLQ
x
7K\URLGVWLPXODWLQJKRUPRQH
x
%,20$5.(566HUXP&71DQG&($VKRXOGEHPHDVXUHGGXULQJVFUHHQLQJDQGWKHGD\
YDQGHWDQLEVWDUWVSULRUWRWKHILUVWGRVH7KHEDVHOLQHYDOXHIRU&71DQG&($LVWKH
DYHUDJHRIWKHVHSUHWUHDWPHQWPHDVXUHPHQWV6HUXP&71VKRXOGEHGUDZQDIWHUDKRXU
IDVWDQGSODFHGRQZHWLFHDQGVHQWWRWKHFKHPLVWU\ODELPPHGLDWHO\
x
85,1(256(58035(*1$1&<7(67UHTXLUHGIRUIHPDOHVRIFKLOGEHDULQJSRWHQWLDO
x
OHDG(&*ZLWK&DOFXODWLRQRI47F 8VH%D]HWW¶VFRUUHFWLRQ47F 4755PXVWEH
SHUIRUPHGDWVFUHHQLQJ7KH47FPXVWEHPVHF8SWR(&*VPD\EHREWDLQHGDW
VFUHHQLQJDQGWKHQWKHPHDQ47FYDOXHXVHGWRGHWHUPLQHHOLJLELOLW\
6FDQV VKRXOGEHSHUIRUPHGZLWKLQRQHPRQWKSULRUWRHQUROOPHQWRIWKHVWXG\
x
&7VFDQVRIWKHQHFNFKHVWDEGRPHQDQGSHOYLV
x
2SWLRQDO05,RIWKHEUDLQDQGQHFN
x
2SWLRQDO P7F%RQHVFDQ
x
2SWLRQDOELRSV\IRU5(7PXWDWLRQDODQDO\VLV

3DWLHQW5HJLVWUDWLRQDQG7UHDWPHQW$VVLJQPHQW
0DXUHHQ(GJHUO\51RIILFHSDJHUPXVWEHQRWLILHGSULRUWRHQWHULQJ
DQ\SDWLHQWVRQVWXG\
$XWKRUL]HGVWDIIPXVWUHJLVWHUDQHOLJLEOHFDQGLGDWHZLWK1&,&HQWUDO5HJLVWUDWLRQ2IILFH&52
ZLWKLQKRXUVRIVLJQLQJFRQVHQW$UHJLVWUDWLRQ(OLJLELOLW\&KHFNOLVWIURPWKHZHEVLWH
KWWSKRPHFFUFDQFHUJRYLQWUDHOLJLELOLW\ZHOFRPHKWPPXVWEHFRPSOHWHGDQGID[HGWR
$IWHUFRQILUPDWLRQRIHOLJLELOLW\DW&HQWUDO5HJLVWUDWLRQ2IILFH&52VWDIIZLOOFDOO
SKDUPDF\WRDGYLVHWKHPRIWKHDFFHSWDQFHRIWKHSDWLHQWRQWKHSURWRFROSULRUWRWKHUHOHDVHRI
DQ\LQYHVWLJDWLRQDODJHQWV
'XULQJWKHSKDVH,,SRUWLRQRIWKHVWXG\&52VWDIIZLOO SHUIRUPUDQGRPL]DWLRQSURFHGXUHV
IROORZLQJFRQILUPDWLRQRIHOLJLELOLW\7KHSKDVH,,FRKRUWUDQGRPL]DWLRQZLOOEHDUDWLRDV
GHVFULEHGLQVHFWLRQ9HULILFDWLRQRI5HJLVWUDWLRQZLOOEHIRUZDUGHGHOHFWURQLFDOO\YLDH
PDLO3OHDVHQRWHLWLVYHU\LPSRUWDQWIRUDOOUHJLVWUDUVWRDFTXLUHHQFU\SWHGHPDLOIURP1,+



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
+HOS'HVNVLQFHWKHYHULILFDWLRQRIUHJLVWUDWLRQLQFOXGHVSDWLHQW¶VLQIRUPDWLRQ $UHFRUGHULV
DYDLODEOHGXULQJQRQZRUNLQJKRXUV

678'<,03/(0(17$7,21

6WXG\'HVLJQ
7KLVVWXG\LVGHVLJQHGWRDVVHVVWKHVDIHW\WROHUDQFHDQGDFWLYLW\RIGDLO\RUDOYDQGHWDQLEDQG
ERUWH]RPLE RQGD\V	HYHU\GD\V LQDGXOWV7KH3KDVH,SRUWLRQLQYROYHVGRVH
HVFDODWLRQVDVGHVFULEHGEHORZLQRUGHUWRHVWDEOLVKWKHRSWLPDOGRVHVRIWKHGUXJFRPELQDWLRQLQ
SDWLHQWVZLWKORFDOO\DGYDQFHGRUPHWDVWDWLFFDQFHULQFOXGLQJ07&7KHSULPDU\REMHFWLYHRI
WKH3KDVH,,SRUWLRQH[DPLQHVWKHDFWLYLW\UHVSRQVHUDWHDQGSURJUHVVLRQIUHHVXUYLYDOLQDGXOWV
ZLWK07&UHFHLYLQJWKHFRPELQDWLRQRIYDQGHWDQLESOXVERUWH]RPLEDQGFRPSDUHVWKLVZLWKD
FRKRUWUHFHLYLQJYDQGHWDQLEDORQH7KHGHVLJQLVWKDWRIDUDQGRPL]DWLRQ
1RWH,QERWKWKHSKDVH,SRUWLRQRIWKHVWXG\DQGLQWKHSDWLHQWVUDQGRPL]HGWRWKHERUWH]RPLE
SOXVYDQGHWDQLEFRPELQDWLRQLQWKHSKDVH,,SRUWLRQRIWKHVWXG\SDWLHQWVZLOOUHFHLYHDPLQLPXP
RIZHHNVRIFRPELQDWLRQWKHUDS\VL[F\FOHV$IWHUVL[F\FOHVKDYHEHHQDGPLQLVWHUHGWKH
RSWLRQWRGLVFRQWLQXHERUWH]RPLEDQGFRQWLQXHRQO\ZLWKYDQGHWDQLEZLOOEHFRQVLGHUHGLQDOO
SDWLHQWVDWHDFKUHDVVHVVPHQW7KLVZLOOEHDFOLQLFDOGHFLVLRQWKDWZLOOFRQVLGHUWKHWROHUDELOLW\
RIWKHUDS\WRWKDWSRLQWDQGWKHH[SHFWHGWROHUDELOLW\JRLQJIRUZDUGZLWKVSHFLDODWWHQWLRQJLYHQ
WRWR[LFLWLHVVXFKDVQHXURSDWK\WKDWDUHFRQVLGHUHGWREHSULPDULO\VHFRQGDU\WRWKH
DGPLQLVWUDWLRQRIERUWH]RPLE7KHFOLQLFDOGHFLVLRQZLOODOVRFRQVLGHUWKHUDWHRIFKDQJH
GHFUHDVHLQWXPRUEXUGHQLQWKHDVVHVVPHQWSHULRGOHDGLQJMXVWSULRUWRWKHWLPHRIPDNLQJWKH
GHFLVLRQ$VUHJDUGVWKHODWWHUWKHLQYVWLJDWRUVZLOOFRQVLGHUZKHWKHUWKHUHLVHYLGHQFHRI
FRQWLQXHGWXPRUVKULQNDJHRUZKHWKHUPD[LPXPVKULQNDJHKDVEHHQDWWDLQHGDVHYLGHQFHGE\WKH
ODFNRIPHDVXUDEOHVKULQNDJHLQWKHODVWDVVHVVPHQWLQWHUYDOFRPSDUHGWRWKHSUHYLRXVDVVHVVPHQW
LQWHUYDO,IDGHFLVLRQLVPDGHWRGLVFRQWXQHERUWH]RPLEWKHSDWLHQWFDQUHPDLQRQYDQGHWDQLE
DORQHDQGWKHYDQGHWDQLEGRVHFDQWKHQEHDGMXVWHGLQDFFRUGDQFHZLWKWKHGRVHOHYHOVXQGHU
³3KDVH,,FRKRUW´

'RVHHVFDODWLRQVFKHPD
7KHGRVHVRIERUWH]RPLEDQGYDQGHWDQLEZLOOEHLQFUHDVHGLQFRKRUWVRIWKUHHSDWLHQWV$F\FOHLV
GHILQHGDVDIRXUZHHNSHULRGZLWK'D\2QHGHILQHGDVWKHGD\RQZKLFKWKHILUVWGRVHRI
ERUWH]RPLELVDGPLQLVWHUHG7KH07'DQG'/7ZLOOEHGHWHUPLQHGEDVHGRQWR[LFLWLHVGXULQJ
WKHILUVWHLJKWZHHNVWZRF\FOHVRIFRPELQHGWKHUDS\'RVHHVFDODWLRQVPD\RFFXURQFHWZRRI
WKHWKUHHSDWLHQWVLQWKHRQJRLQJFRKRUWKDYHFRPSOHWHGHLJKWZHHNVRIWUHDWPHQWDQGWKHWKLUG
SDWLHQWKDVFRPSOHWHGIRXUZHHNVRIWUHDWPHQW ,QWKHHYHQWWKDWRQHRIWKHILUVWWKUHHSDWLHQWV
HQUROOHGRQDJLYHQGRVHOHYHOH[SHULHQFHV'/7DQDGGLWLRQDOWKUHHSDWLHQWVZLOOQHHGWREH
HQUROOHGDWWKDWGRVHOHYHOEHIRUHWKHGRVHHVFDODWLRQFDQFRQWLQXH,QWKLVFDVHLIQRQHRIWKH
DGGLWLRQDOWKUHHSDWLHQWVH[SHULHQFH'/7WKHQWKHGRVHHVFDODWLRQPD\FRQWLQXHWRWKHQH[WGRVH
OHYHO,IPRUHWKDQRQHDGGLWLRQDOSDWLHQWH[SHULHQFH'/7VXFKWKDWt SDWLHQWVH[SHULHQFHG
'/7WKHQDFFUXDO ZLOOFHDVHDQGWKHGRVHDGPLQLVWHUHGLQWKHSUHYLRXVOHYHOZLOOEHGHVLJQDWHG
WKH07'
'RVHOHYHOVZLOOEHDVIROORZV
x /HYHO PJYDQGHWDQLEHYHU\RWKHUGD\YDQGHWDQLERQO\UHGXFWLRQIRUWR[LFLW\
x /HYHO PJYDQGHWDQLEGDLO\YDQGHWDQLERQO\UHGXFWLRQIRUWR[LFLW\
x /HYHOPJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x /HYHO PJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
x /HYHOPJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
x /HYHOPJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\GD\V
1RWHV
,ILQWKHGRVHHVFDODWLRQSRUWLRQRIWKHVWXG\
/HYHOVRUDUHHVWDEOLVKHGDVWKH07'WZRDGGLWLRQDOOHYHOVOHYHOV$DQG%ZLOOEH
WULHG
x /HYHO$PJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\G
x /HYHO%PJYDQGHWDQLEGDLO\PJP ERUWH]RPLERQGD\V	HYHU\G
,I 'RVHOHYHOLVHVWDEOLVKHGDVWKH07'ERWKOHYHOV$DQG%ZLOO EHH[SORUHG
'RVHOHYHOLVHVWDEOLVKHGDVWKH07'ERWKOHYHOV$DQG%FDQ EHH[SORUHG
'RVHOHYHOLVHVWDEOLVKHGDVWKH07'ERWKOHYHOV$DQG%FDQ EHH[SORUHG
$GHFLVLRQZLOOEHPDGHRQO\DIWHUDOOLQWHUHVWHGSDUWLHVKDYHGLVFXVVHGWKHDYDLODEOH
GDWDDQGDGHFLVLRQLVPDGHDVWRZKLFKGRVHPLJKWEHEHVWWRSXUVXH
7KHQ

,IOHYHOLVLQLWLDOO\LGHQWLILHGDVWKH07'OHYHO$RU%ZLOOEHVXEVWLWXWHGDVWKH
OHYHOUHFRPPHQGHGIRUWKHSKDVH,,SRUWLRQRIWKHVWXG\SURYLGHGVDIHW\FDQEH
GHPRQVWUDWHG

,IOHYHOVRUDUHLQLWLDOO\LGHQWLILHGDVWKH07'OHYHO$RU%FDQ EHVXEVWLWXWHG
DVWKHOHYHOUHFRPPHQGHGIRUWKHSKDVH,,SRUWLRQRIWKHVWXG\SURYLGHGVDIHW\FDQEH
GHPRQVWUDWHGDQGRQO\DIWHUDOOLQWHUHVWHGSDUWLHVKDYHGLVFXVVHGWKHDYDLODEOHGDWD
DQGDGHFLVLRQLVPDGHDVWRZKLFKGRVHPLJKWEHEHVWWRSXUVXH

,QWUDSDWLHQWGRVHHVFDODWLRQ
,QWUDSDWLHQWGRVHHVFDODWLRQZLOOEHDOORZHGRQFHDSDWLHQWKDVFRPSOHWHGHLJKWZHHNVRI
WUHDWPHQWDWDJLYHQGRVHOHYHOZLWKRXWVXIIHULQJD'/77KHGRVHIRUHDFKSDWLHQWPD\EH
HVFDODWHGVHYHUDOWLPHVGHSHQGLQJDWZKLFKGRVHOHYHOWKH\HQWHUWKHVWXG\$QLQGLYLGXDOSDWLHQW
ZLOOKDYHWKHGRVHHVFDODWHGWRWKHQH[WKLJKHUGRVHOHYHODIWHUHLJKWZHHNVDWWKHLUFXUUHQWGRVH
OHYHO2QFHRQWKHKLJKHUOHYHOIRUHLJKWZHHNVZLWKRXW'/7WKHGRVHFDQEHHVFDODWHGDJDLQ
2QFHWKH07'LVHVWDEOLVKHGQRSDWLHQWZLOOKDYHWKHGRVHHVFDODWHGEH\RQGWKDWOHYHO

'HWHUPLQDWLRQRIPD[LPXPWROHUDWHGGRVH07'DQGGRVHOLPLWLQJWR[LFLW\'/7
7KHGRVHVRIERUWH]RPLEDQGWKHQYDQGHWDQLEZLOOEHLQFUHDVHGLQFRKRUWVRIWKUHHSDWLHQWV7KH
07'DQG'/7ZLOOEHGHWHUPLQHGEDVHGRQWR[LFLWLHVGXULQJWKHILUVWHLJKWZHHNVRIFRPELQHG
WKHUDS\,IDSDWLHQWH[SHULHQFHVDQ\'/7GXULQJWKHILUVWHLJKWZHHNVRIWUHDWPHQWWKHUDS\ZLOO
EHZLWKKHOGDQGWKHGRVHRIVWXG\WUHDWPHQWZLOOEHZLWKKHOGIRUXSWRZHHNVXQWLOWKHWR[LFLW\
KDVUHVROYHGWR&7&$(JUDGHRUEHWWHU3DWLHQWVZLOOEHZLWKGUDZQIURPWKHVWXG\LIWR[LFLW\
GRHVQRWUHVROYH WR&7&$(JUDGHZLWKLQZHHNV:KHQWKHWR[LFLW\UHVROYHVWR&7&$(
JUDGHVWXG\WUHDWPHQWPD\EHUHVWDUWHGDWRQHORZHUGRVHOHYHO6HH6HFWLRQ*XLGHOLQHVIRU
GRVHPRGLILFDWLRQVDQGPDQDJHPHQWRIWR[LFLWLHVIROORZLQJWKHILUVWVL[ZHHNVRIWKHUDS\
*XLGHOLQHVIRUWKHPDQDJHPHQWRIWR[LFLWLHVDQGIRUVXSSRUWLYHPHDVXUHVGLVFXVVHGWKHUHLQDSSO\
DOVRWRWKHILUVWHLJKWZHHNVRIWKHUDS\ZLWKWKHH[FHSWLRQWKDWGRVHUHGXFWLRQVLQHYHU\FDVHZLOO
EHE\RQHGRVHOHYHOUHJDUGOHVVRIZKLFKGUXJLVIHOWWREHUHVSRQVLEOHIRUWKHWR[LFLW\,QDOOFDVHV
LIDGRVHUHGXFWLRQLVLQVWLWXWHGIRUWR[LFLW\WKHSDWLHQWPD\VXEVHTXHQWO\EHUHFKDOOHQJHGZLWK



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
WKDWGRVHSURYLGHGWKDWDWOHDVWRQHF\FOHKDVEHHQFRPSOHWHGDWWKHUHGXFHGGRVHOHYHOZLWKRXW
DQ\GRVHOLPLWLQJWR[LFLW\DQGLQWKHRSLQLRQRIWKHLQYHVWLJDWRUVVXFKDUHFKDOOHQJHFDQEH
DWWHPSWHGZLWKRXWULVNWRWKHSDWLHQW
1RWH $SDWLHQWZLOOEHFRQVLGHUHGHYDOXDEOHIRUWR[LFLW\DIWHURQHF\FOHRUIRXUZHHNVDQGWKLVLV
DWOHDVWWZHQW\GRVHVRIYDQGHWDQLEDQGIRXU GRVHVRIERUWH]RPLE
1RWH $'/7LVDWWULEXWHGWRDGRVHOHYHOQRWDQLQGLYLGXDOGUXJGRVH
1RWH 3DWLHQWVZKRJRRIIVWXG\IRUUHDVRQVRWKHUWKDQWR[LFLW\ZLOOEHUHSODFHG

'HILQLWLRQRI0D[LPXP7ROHUDWHG'RVH07'
$07'IRUWKHFRPELQDWLRQRIYDQGHWDQLEDQGERUWH]RPLEZLOOEHGHWHUPLQHGLI'/7LV
REVHUYHGLQRUPRUHSDWHLQWVDWRQHRIWKHGRVHOHYHOVEHLQJHYDOXDWHG7KH07'ZLOOEHWKH
GRVHOHYHOLPPHGLDWHO\SUHFHHGLQJWKHGRVHOHYHODWZKLFK'/7RFFXUUHG

'HILQLWLRQRI'RVH/LPLWLQJ7R[LFW\'/7
7KLVVWXG\ZLOOXWLOL]HWKH1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV9HUVLRQ
&7&$(IRUWR[LFLW\DQG$GYHUVH(YHQWJUDGLQJDQGUHSRUWLQJXQWLO'HFHPEHU
&7&$(YHUVLRQZLOOEHXWLOL]HGEHJLQQLQJ-DQXDU\ $FRS\RIWKH&7&$(YHUVLRQ
FDQEHYLHZHGRUGRZQORDGHGIURPWKH&7(3ZHEVLWH
KWWSFWHSLQIRQLKJRYUHSRUWLQJFWFYKWPO$FRS\RIWKH&7&$(YHUVLRQFDQEH
GRZQORDGHGIURPWKH&7(3ZHEVLWHKWWSFWHSFDQFHUJRY$QDGYHUVHHYHQWPXVWEHMXGJHG
WREHSRVVLEO\SUREDEO\RUGHILQLWHO\UHODWHGWRYDQGHWDQLEWREHDGRVHOLPLWLQJWR[LFLW\
'RVHOLPLWLQJWR[LFLW\LVGHILQHGDV

+HPDWRORJLF'RVH/LPLWLQJ7R[LFLW\+'/7
x 1HXWURSKLOFRXQWEHORZȝ/JUDGHRQFRQVHFXWLYHPHDVXUHPHQWVGUDZQDW
OHDVWKRXUVDSDUWD0RQGD\7KXUVGD\RU7XHVGD\)ULGD\VFKHGXOH25DVLQJOH
QHXWURSKLOFRXQWEHORZȝ/JUDGH
x 3ODWHOHWFRXQWEHORZȝ/JUDGHRQFRQVHFXWLYHPHDVXUHPHQWVGUDZQDWOHDVW
KRXUVDSDUWD0RQGD\7KXUVGD\RU7XHVGD\)ULGD\VFKHGXOH25DVLQJOHSODWHOHW
FRXQWEHORZȝ/JUDGH$SODWHOHWWUDQVIXVLRQDGPLQLVWHUHGZKHQSODWHOHWFRXQW
LVEHORZȝ/LVGRVHOLPLWLQJWKURPERF\WRSHQLDXQOHVVWKHWUDQVIXVLRQLVEHLQJ
DGPLQLVWHUHGIRUSHULRSHUDWLYHFRYHUDJH
x *UDGHRUGHFUHDVHLQKHPRJORELQWKDWFDQEHFRUUHFWHGWRDWOHDVWJGOJUDGHE\
WUDQVIXVLRQRIUHGEORRGFHOOVLVQRWDGRVHOLPLWLQJWR[LFLW\+RZHYHUJUDGHRU
KHPRO\VLVLVDGRVHOLPLWLQJWR[LFLW\LILWLVMXGJHGWREHYDQGHWDQLEUHODWHG
x *UDGHRUOHXFRSHQLDLVQRWDGRVHOLPLWLQJWR[LFLW\
x *UDGHRUO\PSKRSHQLDLVQRWDGRVHOLPLWLQJWR[LFLW\

1RQ+HPDWRORJLF'RVH/LPLWLQJ7R[LFLW\1+'/7
1+'/7LVDQ\JUDGHRUKLJKHUQRQKHPDWRORJLFWR[LFLW\ZLWKWKHH[FHSWLRQRI
x *UDGHQDXVHDWKDWLVFRQWUROOHGE\V\PSWRPDWLFWUHDWPHQWZLWKDQWLHPHWLFVVHH
$SSHQGL[&WRDYRLGDJHQWVWKDWFDQSURORQJWKH47FZLWKLQKRXUV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x *UDGHYRPLWLQJWKDWLVFRQWUROOHGE\V\PSWRPDWLFWUHDWPHQWZLWKDQWLHPHWLFVVHH
$SSHQGL[&WRDYRLGDJHQWVWKDWFDQSURORQJWKH47FZLWKLQKRXUV
x $Q\JUDGHRIGLDUUKHDWKDWLVWXPRUUHODWHGSUHVHQWDWEDVHOLQHDQGDVVRFLDWHGZLWK
HOHYDWHGFDOFLWRQLQOHYHOVRUJUDGHGLDUUKHDWKDWLVUHODWHGWRYDQGHWDQLEDQGLV
FRQWUROOHGE\V\PSWRPDWLFWUHDWPHQWZLWKLQKRXUV
x *UDGHVHUXPWUDQVDPLQDVHHOHYDWLRQ$/7$67WKDWUHWXUQVWRJUDGHRUOHVVZLWKLQ
GD\V7KHGUXJPD\EHKHOGXQWLOWKHWUDQVDPLQDVHHOHYDWLRQVXEVLGHVEXWLIWKHJUDGH
WUDQVDPLQDVHHOHYDWLRQUHFXUVZKHQWKHGUXJLVUHLQVWLWXWHGWKLVZLOOEHFRQVLGHUHGGRVH
OLPLWLQJWR[LFLW\
x *UDGHHOHFWURO\WHDEQRUPDOLWLHVWKDWDUHDV\PSWRPDWLFDQGFRUUHFWDEOHWRJUDGH RUOHVV
ZLWKLQKRXUV
x *UDGHLQIHFWLRQZLWKQHXWURSHQLDZLWKRXWQHXWURSHQLDRUZLWKXQNQRZQ$1&
x *UDGHIHEULOHQHXWURSHQLDIHYHUZLWK$1&/
x *UDGH+71WKDWLVVXERSWLPDOO\WUHDWHG

'RVHOLPLWLQJK\SHUWHQVLRQ
7KLVLVGHILQHGDVDQ\JUDGH+71RUDJUDGH+71WKDWGRHVQRWUHVSRQGWRWUHDWPHQWRU
UHTXLUHVPRUHWKDQZHHNVWRUHVROYHWRJUDGH
47F3URORQJDWLRQ 'RVHOLPLWLQJ47FSURORQJDWLRQLVGHILQHGDV
x $VLQJOH47FYDOXHPVHF25DQLQFUHDVHRIPVHFIURPEDVHOLQH25
x 7ZRFRQVHFXWLYH(&*PHDVXUHPHQWVZKLFKDUHZLWKLQKRXUVRIRQHDQRWKHUDQG
ZKLFKPHHWHLWKHURIWKHIROORZLQJFULWHULD
L 47FPVHFEXWPVHF25
LL $PVHFEXWPVHFLQFUHDVHLQWKH47FIURPEDVHOLQH47FWRD47FYDOXH
PVHF

'UXJ$GPLQLVWUDWLRQ

9DQGHWDQLE
 $GPLQLVWUDWLRQ
9DQGHWDQLELVDGPLQLVWHUHGRUDOO\RQFHGDLO\FRQWLQXRXVO\$F\FOHRIYDQGHWDQLELVGHILQHGDV
FRQVHFXWLYHGD\VVWDUWLQJZLWKWKHILUVWGD\RIWKHWUHDWPHQWF\FOH7UHDWPHQWZLOOEH
DGPLQLVWHUHGLQDQRXWSDWLHQWVHWWLQJ9DQGHWDQLEDQGERUWH]RPLEZLOOEHJLYHQVLPXOWDQHRXVO\
RQWKHILUVWGD\RIHDFKF\FOH
1RWHV
L
3DWLHQWVZLOOUHFHLYHWKHLUDVVLJQHGGRVHRIYDQGHWDQLERQFHGDLO\DWWKHVDPHWLPHRIWKH
GD\9DQGHWDQLEDEVRUSWLRQLVQRWDIIHFWHGE\DPHDOVRLWQHHGQRWEHDGPLQLVWHUHGLQWKH
IDVWHGVWDWH 7KHWDEOHWVKRXOGEHVZDOORZHGZKROH,IDSDWLHQWPLVVHVDVFKHGXOHGGRVH
RIYDQGHWDQLEDQGOHVVWKDQKRXUVKDYHSDVVHGVLQFHWKHVFKHGXOHGGRVLQJWLPHWKHGRVH
VKRXOGEHWDNHQLPPHGLDWHO\,IPRUHWKDQKRXUVKDYHSDVVHGVLQFHWKHVFKHGXOHG
GRVLQJWLPHWKHSDWLHQWVKRXOGQRWWDNHWKHPLVVHGGRVHEXWVKRXOGZDLWDQGWDNHWKHQH[W
UHJXODUO\VFKHGXOHGGRVH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
LL
,IWKHSDWLHQWYRPLWVZLWKLQPLQXWHVRIWDNLQJYDQGHWDQLEWKHQDQRWKHUGRVHFDQEH
DGPLQLVWHUHG7KHGRVHPD\RQO\EHUHSHDWHGRQFH,IPRUHWKDQPLQXWHVKDVSDVVHG
IURPWKHWLPHRIRUDOGRVLQJWKHQQRDGGLWLRQDOGRVHVVKRXOGEHJLYHQ
LLL
3DWLHQWVRUWKHLUJXDUGLDQVZLOONHHSDGLDU\$SSHQGL[%WRGRFXPHQWWKHLQWDNHRIHDFK
GRVHFRQFRPLWDQWPHGLFDWLRQVDQGDQ\WR[LFLW\

%RUWH]RPLE
 $GPLQLVWUDWLRQ
%RUWH]RPLEZLOOEHDGPLQLVWHUHGDVDEROXVLQWUDYHQRXVLQMHFWLRQRQGD\VDQGRID
GD\F\FOHIROORZHGE\DGD\UHVWSHULRGGD\V7KLVIRXUZHHNSHULRGLVFRQVLGHUHGD
WUHDWPHQWF\FOH$SSUR[LPDWHO\KRXUVVKRXOGHODSVHEHWZHHQFRQVHFXWLYHGRVHVRI
ERUWH]RPLE+RZHYHULWLVUHFRJQL]HGWKDWEHFDXVHRILQDGYHUWHQWGHOD\VDGRVHPD\EHJLYHQ
PRUHWKDQKRXUVDIWHUWKHSUHYLRXVGRVHDQGLISODQVKDYHEHHQPDGHIRUDLUOLQHWUDYHO D
GHOD\RIVXEVHTXHQWGRVHVPD\DGYHUVHO\DIIHFWWKLV&RQVHTXHQWO\DSHULRGLQH[FHVVRIKRXUV
LVFRQVLGHUHGDFFHSWDEOH%RUWH]RPLELVDQDQWLQHRSODVWLF&DXWLRQVKRXOGEHXVHGGXULQJ
KDQGOLQJDQGSUHSDUDWLRQ3URSHUDVHSWLFWHFKQLTXHVKRXOGEHXVHG8VHRIJORYHVDQGRWKHU
SURWHFWLYHFORWKLQJWRSUHYHQWVNLQFRQWDFWLVUHFRPPHQGHG,QFOLQLFDOWULDOVORFDOVNLQLUULWDWLRQ
ZDVUHSRUWHGLQRISDWLHQWVEXWH[WUDYDVDWLRQRIERUWH]RPLEZDVQRWDVVRFLDWHGZLWKWLVVXH
GDPDJH
 $GPLQLVWUDWLRQSUHFDXWLRQV
%RUWH]RPLELQIXVLRQLVJLYHQE\UDSLG,9SXVKXVXDOO\LQWRDUXQQLQJ,9RYHUWRVHFRQGV
&RPSDWLELOLW\VWXGLHVKDYHQRWEHHQGRQHEHFDXVHWKHGUXJLVUHFRQVWLWXWHGZLWK6RGLXP
&KORULGH,QMHFWLRQ863WKDWLVWKHSUHIHUUHGVROXWLRQIRULQIXVLRQIOXVKIROORZLQJLQWUDYHQRXV
SXVK$GPLQLVWUDWLRQYLDFHQWUDORUSHULSKHUDODFFHVVLVDFFHSWDEOH
 $GPLQLVWUDWLRQORFDWLRQV
%RUWH]RPLEZLOOEHDGPLQLVWHUHGDWWKH1&,&&5IDFLOLW\LQ%HWKHVGD0'GXULQJERWKSKDVHV
RIWKHVWXG\3DWLHQWVZLOO127KDYH WKHRSWLRQRIUHFHLYLQJERUWH]RPLEDWWKHLUORFDOSK\VLFLDQ¶V
SUDFWLFHVHWWLQJ

*XLGHOLQHVIRUGRVHPRGLILFDWLRQVDQGPDQDJHPHQWRIWR[LFLWLHVIROORZLQJWKHILUVW
HLJKWZHHNVRIWKHUDS\
'/7VWKDWDULVHDIWHUWKHILUVWHLJKWZHHNV RIFRPELQHGWKHUDS\ ZLOOEHPDQDJHGDFFRUGLQJWRWKH
JXLGHOLQHVEHORZWKDWLGHQWLI\GUXJGRVHVIRUHDFKGRVHOHYHODQGFRQVLGHUWKHGUXJUHVSRQVLEOH
IRUWKHREVHUYHGWR[LFLW\
'RVH/HYHO
9DQGHWDQLE'RVH
%RUWH]RPLE'RVH
/HYHO±
PJYDQGHWDQLEGDLO\
1RQHYDQGHWDQLERQO\
/HYHO
PJYDQGHWDQLEGDLO\
PJP ERUWH]RPLERQGD\VDQG
/HYHO$
PJYDQGHWDQLEGDLO\
PJP ERUWH]RPLERQGD\VDQG
/HYHO%
PJYDQGHWDQLEGDLO\
PJP ERUWH]RPLERQGD\VDQG
/HYHO
PJYDQGHWDQLEGDLO\
PJP ERUWH]RPLERQGD\VDQG
/HYHO
PJYDQGHWDQLEGDLO\
PJP ERUWH]RPLERQGD\VDQG
/HYHO
PJYDQGHWDQLEGDLO\
PJP ERUWH]RPLERQGD\VDQG
)RUH[DPSOHDSDWLHQWRQGRVHOHYHOZKRH[SHULHQFHVWR[LFLW\FDQKDYHWKHGRVHUHGXFHGWR



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x
'RVHOHYHOLIWKHWR[LFLW\LVGHWHUPLQHGWREHGXHWRYDQGHWDQLE
x
'RVHOHYHO$LIWKHWR[LFLW\LVGHWHUPLQHGWREHGXHWRERUWH]RPLERU
x
'RVHOHYHOLIWKHWR[LFLW\LVGHWHUPLQHGWREHGXHWRERWKGUXJV
,QSDWLHQWVUDQGRPL]HGWRWKHYDQGHWDQLERQO\DUPRIWKHVWXG\LQWKHSKDVH,,SRUWLRQDVZHOO
WKRVHLQZKRPERUWH]RPLELVGLVFRQWLQXHGIRUUHDVRQVRIWROHUDELOLW\WKHYDQGHWDQLEGRVHFDQEH
HVFDODWHGLQPJLQFUHPHQWVWRDPD[LPXPRIPJSHUGD\SURYLGHGWKDWWKH\DUH
WROHUDWLQJWKHWKHUDS\ZHOO'RVHDGMXVWPHQWVLQWKHVHSDWLHQWVZLOOEHDVSHUWKHGRVHOHYHOV
EHORZ*LYHQWKDWDERXWGD\VDUHQHHGHGWRUHDFKVWHDG\VWDWHXSZDUGGRVHDGMXVWPHQWVLQ
YDQGHWDQLEVKRXOGEHSHUIRUPHGDIWHUHYHU\WZRF\FOHV
'RVHOHYHOVIRUYDQGHWDQLEDORQH
PJYDQGHWDQLEHYHU\RWKHUGD\
PJYDQGHWDQLEGDLO\
PJYDQGHWDQLEGDLO\
PJYDQGHWDQLEGDLO\

&XWDQHRXV7R[LFLW\
*XLGHOLQHVIRUPDNLQJSURWRFROGHFLVLRQVLQSDWLHQWVZLWKFXWDQHRXVWR[LFLW\
1RWH 7KHFXWDQHRXVWR[LFLW\VKRXOGEHJUDGHGDVVHVVHGE\DSK\VLFLDQDVVRRQDVSRVVLEOH
DFFRUGLQJWRWKH&7&$(FXWDQHRXVWR[LFLW\FULWHULDDQGGRFXPHQWHG
5DVKJUDGH
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHKHOGDQGLPPHGLDWH
V\PSWRPDWLFWUHDWPHQWVKRXOGEHSURYLGHG
,IWUHDWPHQWKHOGIRUPRUH
WKDQZHHNVGXHWR
FXWDQHRXVWR[LFLW\
7KHUDS\ZLOOEHGLVFRQWLQXHG
:KHQWR[LFLW\UHVROYHVWR
JUDGH
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHUHVWDUWHGDWRQHGRVH
OHYHOORZHUIRUERWKGUXJVWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKH
WR[LFLW\GHYHORSHG6\PSWRPDWLFWUHDWPHQWPD\FRQWLQXH
LQGHILQLWHO\DVDSUHYHQWLYHPHDVXUH
,IFXWDQHRXVWR[LFLW\JUDGH
UHFXUV DWDUHGXFHG
GRVHVRIYDQGHWDQLEDQG
ERUWH]RPLEDQGWKLVOHYHO
LVRWKHUWKDQOHYHO
$JDLQKROGERWKYDQGHWDQLEDQGERUWH]RPLEXQWLOWKHWR[LFLW\
UHVROYHVWRJUDGHDWZKLFKWLPHERWKYDQGHWDQLEDQG
ERUWH]RPLERUYDQGHWDQLEDORQHVKRXOGEHUHVWDUWHGDWRQHGRVH
OHYHOORZHUIRUERWKGUXJVWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKH
WR[LFLW\GHYHORSHG6\PSWRPDWLFWUHDWPHQWPD\FRQWLQXH
LQGHILQLWHO\DVDSUHYHQWLYHPHDVXUH
,IFXWDQHRXVWR[LFLW\JUDGH
UHFXUVDWGRVHOHYHO
7KHUDS\ZLOOEHGLVFRQWLQXHG
,IZLWKRUZLWKRXW
FRQWLQXHGV\PSWRPDWLF
WUHDWPHQWWKHFXWDQHRXV
WR[LFLW\GRHVQRWUHFXUDW
WKHUHGXFHGGRVHVRI
YDQGHWDQLEDQG
ERUWH]RPLE
7KHGRVHRIYDQGHWDQLEPD\EHLQFUHDVHGRQHGRVHOHYHOWRWKDW
ZKLFKZDVEHLQJDGPLQLVWHUHGDWWKHWLPHWKHFXWDQHRXVWR[LFLW\
GHYHORSHG,IWR[LFLW\UHFXUVIROORZLQJWKLVLQFUHDVHWKHQIROORZ
WKHJXLGHOLQHVDERYHZLWKWKHH[FHSWLRQWKDWZKHQGUXJLV
UHVWDUWHGRQO\WKHYDQGHWDQLEGRVHVKRXOGEHUHGXFHGRQHGRVH
OHYHO



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

*DVWURLQWHVWLQDO*,7R[LFLW\ 1DXVHD9RPLWLQJ
*XLGHOLQHVIRUPDNLQJSURWRFROGHFLVLRQVLQSDWLHQWVZLWKQDXVHDDQGRUYRPLWLQJ
,IWKHQDXVHDDQGRUYRPLWLQJFDQQRWEH
FRQWUROOHGZLWKWKHSUHYHQWLYHPHDVXUHV
RXWOLQHGLQVHFWLRQDQGWKHLUVHYHULW\LV
JUDGHRUSHUVLVWHQWJUDGHSHUVLVWHQW
GHILQHGDVODVWLQJIRUPRUHWKDQWZRZHHNV
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHKHOG
,IYDQGHWDQLEDQGERUWH]RPLEDUHKHOGIRU
PRUHWKDQZHHNVDQGWKHQDXVHDDQGRU
YRPLWLQJGRQRWUHVROYHWRJUDGH
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
,IZLWKLQWKUHHZHHNVRIKROGLQJWKHUDS\WKH
QDXVHDDQGYRPLWLQJUHVROYHWRJUDGH
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEH
UHVWDUWHGDWRQHGRVHOHYHOORZHUIRUERWKGUXJV
WKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\
GHYHORSHG
,IWKHQDXVHDDQGRUYRPLWLQJWKDWLVJUDGH
RUSHUVLVWHQWJUDGHSHUVLVWHQWGHILQHG
DVODVWLQJIRUPRUHWKDQWZRZHHNVUHFXUVDW
WKHUHGXFHGGRVHVRIYDQGHWDQLEDQG
ERUWH]RPLEDQGWKLVLVKLJKHUWKDQOHYHO
$JDLQKROGERWKYDQGHWDQLEDQGERUWH]RPLE
XQWLOWKHWR[LFLW\UHVROYHVWR&7&$(JUDGH
DWZKLFKWLPHERWKYDQGHWDQLEDQGERUWH]RPLE
RUYDQGHWDQLEDORQHVKRXOGEHUHVWDUWHGDWRQH
GRVHOHYHOORZHUIRUERWKGUXJVWKDQWKDW
DGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\GHYHORSHG
6\PSWRPDWLFWUHDWPHQWPD\FRQWLQXH
LQGHILQLWHO\DVDSUHYHQWLYHPHDVXUH
,IQDXVHDDQGRUYRPLWLQJWKDWLV&7&$(
JUDGHRUSHUVLVWHQWJUDGHSHUVLVWHQW
GHILQHGDVODVWLQJIRUPRUHWKDQWZRZHHNV
UHFXUVDWGRVHOHYHO
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
,IZLWKRUZLWKRXWFRQWLQXHGV\PSWRPDWLF
WUHDWPHQWWKHQDXVHDDQGYRPLWLQJGRQRW
UHFXUDWWKHUHGXFHGGRVHVRIYDQGHWDQLEDQG
ERUWH]RPLE
7KHGRVHRIYDQGHWDQLEPD\EHLQFUHDVHGRQH
GRVHOHYHOWRWKDWZKLFKZDVEHLQJDGPLQLVWHUHG
DWWKHWLPHWKHQDXVHDDQGYRPLWLQJGHYHORSHG
,IWR[LFLW\UHFXUVIROORZLQJWKLVLQFUHDVHWKHQ
IROORZWKHJXLGHOLQHVDERYHZLWKWKHH[FHSWLRQ
WKDWZKHQGUXJLVUHVWDUWHGRQO\WKHYDQGHWDQLE
GRVHVKRXOGEHUHGXFHGRQHGRVHOHYHO

*DVWURLQWHVWLQDO*,7R[LFLW\± 'LDUUKHD
*XLGHOLQHVIRUPDNLQJSURWRFROGHFLVLRQVLQSDWLHQWVZLWKGLDUUKHD
*UDGHGLDUUKHD
6\PSWRPDWLFWUHDWPHQWGHVLJQHGWRUHVROYHWKH
GLDUUKHDVKRXOGEHWKHIRFXV1RGRVHPRGLILFDWLRQV
ZLOOEHPDGHIRUJUDGHGLDUUKHDXQOHVVJUDGH
GLDUUKHDSHUVLVWVIRUPRUHWKDQWZRZHHNV
,IJUDGHGLDUUKHDSHUVLVWVIRU
PRUHWKDQWZRZHHNV
7KHQWKHJXLGHOLQHVEHORZIRUJUDGHGLDUUKHD
VKRXOGEHIROORZHG
,IWKHGLDUUKHDFDQQRWEH
FRQWUROOHGZLWKWKHSUHYHQWLYH
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHKHOG$OVR
LISHUVLVWHQWJUDGHGLDUUKHDSHUVLVWHQWGHILQHGDV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
PHDVXUHVRXWOLQHGDQGLVJUDGH
RUZRUVHQVE\RQHJUDGHOHYHO
JUDGH WRJUDGHZKLOHRQ
YDQGHWDQLEDQGLVQRWDOOHYLDWHG
E\V\PSWRPDWLFWUHDWPHQWZLWKLQ
K
ODVWLQJIRUPRUHWKDQWZRZHHNVZKLOHRQYDQGHWDQLE
LVQRWDOOHYLDWHGE\V\PSWRPDWLFWUHDWPHQWERWK
YDQGHWDQLEDQGERUWH]RPLEVKRXOGEHKHOG
,IYDQGHWDQLEDQGERUWH]RPLEDUH
KHOGIRUPRUHWKDQZHHNVDQG
WKHGLDUUKHDGRHVQRWUHVROYHWR
JUDGH
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
,IZLWKLQWKUHHZHHNVRIKROGLQJ
WKHUDS\WKHGLDUUKHDUHVROYHVWR
JUDGH
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHUHVWDUWHG
DWRQHGRVHOHYHOORZHUIRUERWKGUXJVWKDQWKDW
DGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\GHYHORSHG
,IGLDUUKHDWKDWLVJUDGHRU
SHUVLVWHQW JUDGHSHUVLVWHQW
GHILQHGDVODVWLQJIRUPRUHWKDQ
WZRZHHNVUHFXUVDWWKHUHGXFHG
GRVHVRIYDQGHWDQLEDQG
ERUWH]RPLEDQGWKLVLVKLJKHU
WKDQOHYHO
$JDLQKROGERWKYDQGHWDQLEDQGERUWH]RPLEXQWLOWKH
WR[LFLW\UHVROYHVWR&7&$(JUDGHDWZKLFKWLPH
ERWKYDQGHWDQLEDQGERUWH]RPLERUYDQGHWDQLEDORQH
VKRXOGEHUHVWDUWHGDWRQHGRVHOHYHOORZHUIRUERWK
GUXJVWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\
GHYHORSHG6\PSWRPDWLFWUHDWPHQWPD\FRQWLQXH
LQGHILQLWHO\DVDSUHYHQWLYHPHDVXUH
,IGLDUUKHDWKDWLVJUDGHRU
SHUVLVWHQWJUDGHSHUVLVWHQW
GHILQHGDVODVWLQJIRUPRUHWKDQ
WZRZHHNVUHFXUVDWGRVHOHYHO
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
(OHFWURO\WHVVKRXOGEHFORVHO\
PRQLWRUHGLQWKHHYHQWRI
SHUVLVWHQWGLDUUKHD
9DQGHWDQLEVKRXOGEHKHOGLQSDWLHQWVZKRGHYHORS
HOHFWURO\WHDEQRUPDOLWLHVIURPGLDUUKHDXQWLOWKH
HOHFWURO\WHDEQRUPDOLWLHVDUHFRUUHFWHGEHFDXVHRIWKH
ULVNRI47FSURORQJDWLRQDQGVXEVHTXHQW
DUUK\WKPLDV
,IZLWKRUZLWKRXWFRQWLQXHG
V\PSWRPDWLFWUHDWPHQWWKH
GLDUUKHDGRHVQRWUHFXUDWWKH
UHGXFHGGRVHVRIYDQGHWDQLEDQG
ERUWH]RPLE
7KHGRVHRIYDQGHWDQLEPD\EHLQFUHDVHGRQHGRVH
OHYHOWRWKDWZKLFKZDVEHLQJDGPLQLVWHUHGDWWKHWLPH
WKHGLDUUKHDGHYHORSHG,IWR[LFLW\UHFXUVIROORZLQJ
WKLVLQFUHDVHWKHQIROORZWKHJXLGHOLQHVDERYHZLWK
WKHH[FHSWLRQWKDWZKHQGUXJLVUHVWDUWHGRQO\WKH
YDQGHWDQLEGRVHVKRXOGEHUHGXFHGRQHGRVHOHYHO

+\SHUWHQVLRQ
1RWH 3DWLHQWVZLOOKDYHWKHLUEORRGSUHVVXUHFKHFNHGRQFHSHUZHHNGXULQJWKHLUILUVWZHHNV
RIWKHUDS\RUIRUDQ\HLJKWZHHNSHULRGDIWHUDQGDGMXVWPHQWLVPDGHLQWKHLUYDQGHWDQLEGRVH
7KH\ZLOOFDOODPHPEHURIWKHVWXG\WHDPWRUHSRUWWKHEORRGSUHVVXUH,IDQDGMXVWPHQWLV
QHHGHGWKLVPD\EHPDGHDWWKHWLPHRIWKHFDOORUDOWHUQDWHO\DUHIHUUDOWRWKHORFDOSK\VLFLDQZLOO
EHPDGH
*XLGHOLQHVIRUPDNLQJSURWRFROGHFLVLRQVLQSDWLHQWVZLWKK\SHUWHQVLRQ
*UDGH
K\SHUWHQVLRQ
&RQWLQXHRQWKHUDS\LIEORRGSUHVVXUHLVFRQWUROOHGRQDQWLK\SHUWHQVLYH
PHGLFDWLRQ,IEORRGSUHVVXUHFDQQRWEHVWDELOL]HGZLWKLQFUHDVHG



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
DQWLK\SHUWHQVLYHPHGLFDWLRQVWXG\WUHDWPHQWPXVWEHGLVFRQWLQXHGDQGFDQQRWEH
UHVXPHGXQWLOEORRGSUHVVXUHLVFRQWUROOHGWREDVHOLQHOHYHO
*UDGH
K\SHUWHQVLRQ
'LVFRQWLQXHVWXG\WUHDWPHQWDQGGRQRWUHVXPHWKHUDS\XQWLOEORRGSUHVVXUHLV
FRQWUROOHG WREDVHOLQHOHYHO,IVWXG\WUHDWPHQW PXVWEHLQWHUUXSWHGIRUPRUHWKDQ
ZHHNVWRDOORZIRUWR[LFLW\WRUHVROYHWKHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQ
VWXG\
7UHDWPHQWPRGLILFDWLRQJXLGHOLQHVIRUYDQGHWDQLELQGXFHGK\SHUWHQVLRQ
7R[LFLW\*UDGHIRU
+\SHUWHQVLRQ
'HILQLWLRQ
*
$V\PSWRPDWLFWUDQVLHQW  KRXUVLQFUHDVHE\!  PP+J
GLDVWROLFRUWR! LISUHYLRXVO\:1/LQWHUYHQWLRQQRW
LQGLFDWHG
*
5HFXUUHQWRUSHUVLVWHQW!  KRXUVRUV\PSWRPDWLFLQFUHDVHE\
!  PP+JGLDVWROLFRUWR! LISUHYLRXVO\:1/
PRQRWKHUDS\PD\EHLQGLFDWHG
*
5HTXLULQJPRUHWKDQRQHGUXJRUPRUHLQWHQVLYHWKHUDS\WKDQ
SUHYLRXVO\
*
/LIHWKUHDWHQLQJHJK\SHUWHQVLYHFULVLV
$GYHUVH(YHQW
7UHDWPHQW0RGLILFDWLRQ
*
&RQWLQXHYDQGHWDQLEDWVDPHGRVHDQGVFKHGXOH
*DV\PSWRPDWLF
7UHDWZLWKDQWLK\SHUWHQVLYHPHGLFDWLRQVDQGFRQWLQXH
YDQGHWDQLEDWVDPHGRVHDQGVFKHGXOH
*V\PSWRPDWLFRU
SHUVLVWHQW*GHVSLWHDQWL
K\SHUWHQVLYHPHGLFDWLRQVRU
'LDVWROLF%3!  PP+J
RU*K\SHUWHQVLRQ
7UHDWZLWKDQWLK\SHUWHQVLYHPHGLFDWLRQV+ROGYDQGHWDQLE
PD[LPXP ZHHNVXQWLOV\PSWRPVUHVROYHDQGGLDVWROLF%3
  PP+JWKHQFRQWLQXHYDQGHWDQLEDWRQHGRVHOHYHO
ORZHU
1RWH,IYDQGHWDQLELVKHOGPRUHWKDQ ZHHNVWKHQGLVFRQWLQXH
WKHUDS\
*
'LVFRQWLQXHWKHUDS\

7R[LFLWLHVRWKHUWKDQFXWDQHRXVJDVWURLQWHVWLQDOK\SHUWHQVLRQRU47FSURORQJDWLRQ
,IWKHWR[LFLW\FDQQRWEHFRQWUROOHGZLWK
WKHVWDQGDUGPHDVXUHVDQGLV&7&$(
JUDGHRUSHUVLVWHQWJUDGH
SHUVLVWHQWGHILQHGDVODVWLQJIRUPRUH
WKDQWZRZHHNV
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHKHOG
1RWHWKHGHFLVLRQWRGLVFRQWLQXHWKHUDS\IRU
SHUVLVWHQWJUDGHZLOOGHSHQG RQWKHWR[LFLW\DQGWKH
RSLQLRQRIWKHLQYHVWLJDWRU
,IWKHWR[LFLW\KDVUHVROYHGWRJUDGH
ZLWKLQZHHNVRIKROGLQJWKHVWXG\
PHGLFDWLRQ
6WXG\WUHDWPHQWPD\EHUHVWDUWHGZLWKDQDSSURSULDWH
GRVHUHGXFWLRQGHSHQGHQWRQWKHGRVHWKDWLVEHLQJ
DGPLQLVWHUHGDQGWKHGUXJGHWHUPLQHGWREH
UHVSRQVLEOHIRUWKHWR[LFLW\
,IWR[LFLW\GRHVQRWUHVROYHWRJUDGH
ZLWKLQZHHNV
3DWLHQWVZLOOEHZLWKGUDZQIURPWKHVWXG\



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
,IWR[LFLW\LVGHWHUPLQHGWREHVHFRQGDU\WRYDQGHWDQLE
ZKHQWKHWR[LFLW\UHVROYHVWRJUDGH
9DQGHWDQLEVKRXOGEHUHVWDUWHGDWRQHGRVHOHYHOORZHU
WKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\
GHYHORSHG
,IWR[LFLW\WKDWLVJUDGHRUSHUVLVWHQW
JUDGHSHUVLVWHQWGHILQHGDVODVWLQJ
IRUPRUHWKDQWZRZHHNVUHFXUVDWWKH
UHGXFHGGRVHRIYDQGHWDQLEDQGWKLVLV
KLJKHUWKDQOHYHO
$JDLQKROGYDQGHWDQLEXQWLOWKHWR[LFLW\UHVROYHVWR
JUDGHDWZKLFKWLPHYDQGHWDQLEVKRXOGEHUHVWDUWHG
DWRQHGRVHOHYHOORZHUWKDQWKDWDGPLQLVWHUHGDWWKH
WLPHWKHWR[LFLW\GHYHORSHG6\PSWRPDWLFWUHDWPHQW
PD\FRQWLQXHLQGHILQLWHO\DVDSUHYHQWLYHPHDVXUH
,IWR[LFLW\WKDWLVJUDGHRUSHUVLVWHQW
JUDGHSHUVLVWHQWGHILQHGDVODVWLQJ
IRUPRUHWKDQWZRZHHNVUHFXUVDWGRVH
OHYHO
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
,IWR[LFLW\LVGHWHUPLQHGWREHVHFRQGDU\WRERUWH]RPLE
:KHQWKHWR[LFLW\UHVROYHVWRJUDGH
%RUWH]RPLEVKRXOGEHUHVWDUWHGDWRQHGRVHOHYHOORZHU
WKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\
GHYHORSHG
,IWR[LFLW\WKDWLVJUDGHRUSHUVLVWHQW
JUDGHSHUVLVWHQWGHILQHGDVODVWLQJ
IRUPRUHWKDQWZRZHHNVUHFXUVDWWKH
UHGXFHGGRVHRIERUWH]RPLEDQGWKLVLV
KLJKHUWKDQOHYHO
$JDLQKROGERUWH]RPLEXQWLOWKHWR[LFLW\UHVROYHVWR
&7&$(JUDGHDWZKLFKWLPHERUWH]RPLEVKRXOGEH
UHVWDUWHGDWRQHGRVHOHYHOORZHUWKDQWKDWDGPLQLVWHUHG
DWWKHWLPHWKHWR[LFLW\GHYHORSHG6\PSWRPDWLF
WUHDWPHQWPD\FRQWLQXHLQGHILQLWHO\DVDSUHYHQWLYH
PHDVXUH
,IWR[LFLW\WKDWLVJUDGHRUSHUVLVWHQW
JUDGHSHUVLVWHQWGHILQHGDVODVWLQJ
IRUPRUHWKDQWZRZHHNVUHFXUVDWGRVH
OHYHORIERUWH]RPLE
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
,IWKHGUXJUHVSRQVLEOHIRUWKHWR[LFLW\FDQQRWEHGHWHUPLQHG
:KHQWKHWR[LFLW\UHVROYHVWR&7&$(
JUDGH
%RWKYDQGHWDQLEDQGERUWH]RPLEVKRXOGEHUHVWDUWHGDW
RQHGRVHOHYHOORZHUIRUERWKGUXJVWKDQWKDW
DGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\GHYHORSHG
,IWR[LFLW\WKDWLV&7&$(JUDGHRU
SHUVLVWHQWJUDGHSHUVLVWHQWGHILQHGDV
ODVWLQJIRUPRUHWKDQWZRZHHNVUHFXUV
DWWKHUHGXFHGGRVHVRIYDQGHWDQLEDQG
ERUWH]RPLEDQGWKLVLVKLJKHUWKDQ
OHYHO
$JDLQKROGERWKYDQGHWDQLEDQGERUWH]RPLEXQWLOWKH
WR[LFLW\UHVROYHVWRJUDGH DWZKLFKWLPHERWK
YDQGHWDQLEDQGERUWH]RPLERUYDQGHWDQLEDORQH
VKRXOGEHUHVWDUWHGDWRQHGRVHOHYHOORZHUIRUERWK
GUXJVWKDQWKDWDGPLQLVWHUHGDWWKHWLPHWKHWR[LFLW\
GHYHORSHG6\PSWRPDWLFWUHDWPHQWPD\FRQWLQXH
LQGHILQLWHO\DVDSUHYHQWLYHPHDVXUH
,IWR[LFLW\WKDWLVJUDGHRUSHUVLVWHQW
JUDGHSHUVLVWHQWGHILQHGDVODVWLQJ
IRUPRUHWKDQWZRZHHNVUHFXUVDWGRVH
OHYHORIYDQGHWDQLE
7KHSDWLHQWZLOOGLVFRQWLQXHWKHUDS\RQVWXG\
,IZLWKRUZLWKRXWFRQWLQXHG
V\PSWRPDWLFWUHDWPHQWWKHWR[LFLW\
GRHVQRWUHFXUDWWKHUHGXFHGGRVHVRI
7KHGRVHRIYDQGHWDQLEPD\EHLQFUHDVHGRQHGRVH
OHYHOWRWKDWZKLFKZDVEHLQJDGPLQLVWHUHGDWWKHWLPH
WKHWR[LFLW\GHYHORSHG,IWR[LFLW\UHFXUVIROORZLQJ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
YDQGHWDQLEDQGERUWH]RPLE
WKLVLQFUHDVHWKHQIROORZWKHJXLGHOLQHVDERYHZLWK
WKHH[FHSWLRQWKDWZKHQGUXJLVUHVWDUWHGRQO\WKH
YDQGHWDQLEGRVHVKRXOGEHUHGXFHGRQHGRVHOHYHO

47FSURORQJDWLRQ
 47FPRQLWRULQJ
3DWLHQWVZLOOKDYH(&*VSHUIRUPHGWRPRQLWRU47FLQWHUYDOXVLQJ%D]HWW¶VFRUUHFWLRQDV
RXWOLQHGLQWKHVWXG\SODQ7KHGHILQLWLRQDQGPDQDJHPHQWRI47FDUHDVIROORZV
 'HILQLWLRQRI47FSURORQJDWLRQ
x
$VLQJOH47FYDOXHRIt PVHFRUDQLQFUHDVHRItPVHFIURPEDVHOLQH25
x
7ZRFRQVHFXWLYH 47FPHDVXUHPHQWVZLWKLQKRXUVRIRQHDQRWKHUZKHUHHLWKHURIWKH
IROORZLQJFULWHULDDUHPHWIRUERWK47FYDOXHVWKHVHFRQGEHLQJWKHPHDQRIFRQVHFXWLYH
(&*V

$47FLQWHUYDOt PVHFEXWPVHF25

$QLQFUHDVHRIt PVHFEXWPVHFIURPEDVHOLQH47FWRD47FYDOXHt 
PVHF
*XLGHOLQHVIRUPDNLQJSURWRFROGHFLVLRQVLQSDWLHQWVZLWK47FSURORQJDWLRQ
9DQGHWDQLEGRVHOHYHOVPJGD\PJGD\DQGPJGD\
)RUDVLQJOH47FYDOXHRIPVHFRUDQ
LQFUHDVHRIPVHFIURPEDVHOLQH
9DQGHWDQLEPXVWEHZLWKKHOG(&*VDQG
HOHFWURO\WHVVKRXOGEHIROORZHGWLPHVDZHHN
XQWLO47FUHFRYHUVWRPVHFRUEDVHOLQH
ZKLFKHYHULVKLJKHU9DQGHWDQLEWUHDWPHQWPD\
EHUHVXPHGDWDORZHUGRVHOHYHODIWHUWKH47F
UHFRYHUVWRPVHFRUEDVHOLQH
)RUD47FLQWHUYDOPVHFEXW
PVHFRUDQLQFUHDVHRI PVHFEXW
PVHFIURPEDVHOLQH47FWRD47FYDOXH
PVHF
9DQGHWDQLEPD\EHFRQWLQXHGEXWDUHSHDW
(&*LQWULSOLFDWHPXVWEHREWDLQHGZLWKLQ
KRXUV,I47FSURORQJDWLRQLVFRQILUPHGDW
WKHUHSHDW(&*SHUIRUPHGLQWULSOLFDWH
YDQGHWDQLEVKRXOGEHZLWKKHOG(&*VDQG
HOHFWURO\WHVVKRXOGEHFKHFNHGWLPHVDZHHN
XQWLO47FIDOOVEHORZPVHFRUEDVHOLQH
ZKLFKHYHULVKLJKHU
$IWHUWKH47FUHFRYHUVWRPVHFRU
EDVHOLQH
9DQGHWDQLEWUHDWPHQWPD\EHUHVXPHGDWD
ORZHUGRVHOHYHO
,IWKHSDWLHQWGRHVQRWPHHWWKHFULWHULDIRU47F
SURORQJDWLRQDWWKHUHSHDW(&*SHUIRUPHG
LQWULSOLFDWH
7KHQWKHSDWLHQWVKRXOGFRQWLQXHWUHDWPHQWDQG
UHVXPHWKH(&*VFKHGXOHDVRXWOLQHGLQWKH
6WXG\3ODQ

3KDVH,,&RKRUW
7ZRFRKRUWVZLOOEHDGGHGRQFHWKH07'LVLGHQWLILHG%RWKFRKRUWVZLOOEHUHVWULFWHGWRSDWLHQWV
ZLWKDGLDJQRVLVRI07&LQRUGHUWRDVVHVVWKHDFWLYLW\DQGWROHUDELOLW\LQWKLVSDWLHQWSRSXODWLRQ
DQGWREHDEOHWRSHUIRUPFRUUHODWLYHVWXGLHV7KHHOLJLELOW\FULWHULDIRUWKHVHFRKRUWVZLOOEHWKH
VDPHDVIRUSDWLHQWVLQWKHGRVHHVFDOWLRQSRUWLRQRIWKHVWXG\ZLWKWKHH[FHSWLRQRIWKHGLDJQRVLV
RI07&RQO\LQSKDVH,,FRKRUWV3DWLHQWVZLOOEHUDQGRPL]HGLQDUDWLRDVIROORZV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
$UP$ 7KLVDUPZLOOUHFHLYHWKHFRPELQDWLRQRIYDQGHWDQLEDQG ERUWH]RPLEDWWKHLGHQWLILHG
07'$OVRVLQFHWKLVFRKRUWZLOOEHEHJLQDWWKH07' WKHJXLGHOLQHVIRUGRVHPRGLILFDWLRQV
IROORZLQJWKHILUVWHLJKWZHHNVRIWKHUDS\VKRXOGEHIROORZHG6HH *XLGHOLQHVIRUGRVH
PRGLILFDWLRQVDQGPDQDJHPHQWRIWR[LFLWLHV IROORZLQJWKHILUVWHLJKWZHHNVRIWKHUDS\
$UP% 7KLVDUPZLOOEHJLQYDQGHWDQLEDORQHDWWKH07'GRVHXVHGLQ$UP$,QWKHVHSDWLHQWV
WKHGRVHFDQEHHVFDODWHGLQPJLQFUHPHQWVWRDPD[LPXPRIPJSHUGD\SURYLGHGWKDW
WKH\DUHWROHUDWLQJWKHWKHUDS\ZHOO6HH *XLGHOLQHVIRUGRVHPRGLILFDWLRQVDQG
PDQDJHPHQWRIWR[LFLWLHVIROORZLQJWKHILUVWHLJKWZHHNVRIWKHUDS\

&RUUHODWLYH6WXGLHV
1RWH *HUPOLQHWHVWLQJZLOOQRWEHGRQH :HZLOORQO\EHWHVWLQJWKHWXPRU'1$:HZLOOQRWEH
WHVWLQJ'1$IURPDQ\QRUPDOWLVVXH

([SORUDWRU\DQDO\VHVLQSDWLHQWVZLWK07&DQGWKRVHZLWKDGLDJQRVLVRWKHUWKDQ
07&VHH$SSHQGL[$
 ([SORUDWRU\DQDO\VHVLQSDWLHQWVZLWK07&
 3HUIRUP5(7JHQHPXWDWLRQDODQDO\VLVLQWXPRUWLVVXHREWDLQHGSULRUWRVXUJLFDORURWKHU
SURFHGXUHRUDWWKHWLPHRIHQUROOPHQWRQWKLVSURWRFROFRUHELRSV\DQGH[DPLQHWKH
FRUUHODWLRQEHWZHHQJHQRW\SHDQGUHVSRQVHWRWKHUDS\ 5HVHDUFKVDPSOHVZLOOEHXVHGWR
HYDOXDWHJHQHH[SUHVVLRQLQWKHWXPRUDQGWRVHTXHQFHDQGLGHQWLI\PXWDWLRQVLQWKH5(7
JHQH7KHVHVWXGLHVRIWKH5(7PXWDWLRQVWDWXVLQWXPRUZLOOQRWEHXVHGWRGHWHUPLQH
SURWRFROHOLJLELOLW\RULQIRUPFOLQLFDOGHFLVLRQVRQWKHWULDO7KH\ZLOOEHXVHGIRUUHVHDUFK
SXUSRVHVRQO\LQH[SORUDWRU\DQDO\VHV,QIRUPDWLRQDERXWPXWDWLRQVLQ WXPRUVWKDWPLJKW
DIIHFWYDQGHWDQLEVHQVLWLYLW\LVQRWFXUUHQWO\DYDLODEOH'U)RMR¶VODERUDWRU\
RU7KHVHWHVWVFDQEHSHUIRUPHGRQVDPSOHVIURPWLVVXHEORFNVIUHVKRU
IUR]HQVDPSOHV
 ,QSDWLHQWVZLWK07&ZKRFRQVHQWWRWZR ELRSVLHVRIDVLWHRIGLVHDVHWKDWLVDFFHVVLEOHZLWK
PLQLPDOULVNWRWKHSDWLHQWZHZLOOSHUIRUPDQH[SORUDWRU\DQDO\VLVWRH[DPLQHWKHH[WHQWRI
5(7LQKLELWLRQDQLPSRUWDQWSKDUPDFRG\QDPLFHQGSRLQWQRW\HWH[SORUHGLQDQ\FOLQLFDO
WULDO,QWKHVHSDWLHQWVDELRSV\ZRXOGEHREWDLQHGSULRUWRWKHVWDUWRIWKHUDS\ZLWKWKH
VHFRQGELRSV\REWDLQHGDIWHUGD\VRIYDQGHWDQLEDGPLQLVWUDWLRQ'U)RMR¶VODERUDWRU\
RUÆ 'U)LJJ¶VODERUDWRU\7KHVHVDPSOHVZLOOEHREWDLQHG
GXULQJ&\FOHRUODWHURQFHDSDWLHQWKDVUHFHLYHGDWOHDVWFRQVHFXWLYHGD\VRI
YDQGHWDQLE7KLVWHVWZLOOEHSHUIRPHGRQWLVVXHIURPIUHVKVDPSOHV
 $VVHVVWKHH[SUHVVLRQRI5(7(*)5DQG9(*)5E\LPPXQRKLVWRFKHPLVWU\LQWLVVXH
REWDLQHGSULRUWRRUDWWKHWLPHRIHQUROOPHQWRQWKLVSURWRFROREWDLQHGHLWKHUE\ELRSV\
SHUIRUPHGZKLOHRQVWXG\RUIURPDSULRUVXUJHU\RURWKHUSURFHGXUHDQGH[DPLQHWKH
FRUUHODWLRQEHWZHHQH[SUHVVLRQRIWKHVHSURWHLQVDQGUHVSRQVHWRWKHUDS\ 'U)RMR¶V
ODERUDWRU\ RUÆ 'U)LJJ¶VODERUDWRU\7KHVHWHVWVFDQEH
SHUIRUPHGRQVDPSOHVIURPWLVVXHEORFNVIUHVKRUIUR]HQVDPSOHV
 ([SORUDWRU\DQDO\VHVLQSDWLHQWVZLWKDGLDJQRVLVRWKHUWKDQ07&
,QSDWLHQWVZLWKDGLDJQRVLVRWKHUWKDQ07&ZKRFRQVHQWWRWZR FRUHELRSVLHVRIDVLWHRIGLVHDVH
WKDWLVDFFHVVLEOHZLWKPLQLPDOULVNWRWKHSDWLHQWZHZLOOSODQWRSHUIRUPDFRUHELRSV\SULRUWR
WKHVWDUWRIWKHUDS\DQGVHFRQGFRUHELRSV\DIWHUWKHGD\DGPLQLVWUDWLRQRIERUWH]RPLELQF\FOH
RUWRDVVHVVZKHWKHUPLFURWXEXOHVWDELOL]DWLRQKDVRFFXUUHG7KHODWWHUZRXOGSURYLGH
HYLGHQFHVXSSRUWLQJWKHWKHVLVWKDWPLFURWXEXOHVWDELOL]DWLRQRFFXUVIROORZLQJERUWH]RPLE



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
DGPLQLVWUDWLRQDQGDOVRSURYLGHSKDUPDFRG\QDPLFHYLGHQFHRIDQHIIHFWRIERUWH]RPLERQWKH
WXPRU0LFURWXEXOHVWDELOL]DWLRQZLOOEHDVVHVVHGERWKE\LPPXQRKLVWRFKHPLVWU\DQGE\
LPPXQREORWWLQJXVLQJWZRDQWLERGLHVWKDWUHFRJQL]HSRVWWUDQVODWLRQDOPRGLILFDWLRQVWKDWRFFXU
RQVWDEOHPLFURWXEXOHVDQGWKXVSURYLGHDPHDVXUHRIWKHH[WHQWRIPLFURWXEXOHVWDELOL]DWLRQ
7KHVHDQWLERGLHVUHFRJQL]HDOSKDWXEXOLQWKDWKDVEHHQDFHW\ODWHGDWO\VLQHE\WXEXOLQ
DFHW\ODVHDQGDOSKDWXEXOLQZKRVHFWHUPLQDOUHVLGXHLVDJOXWDPLFDFLGJOXWXEXOLQDVDUHVXOW
RIGHW\URVLQDWLRQRUUHPRYDORIWKHFWHUPLQDOW\URVLQHUHVLGXHE\WXEXOLQFDUER[\SHSWLGDVH'U
)RMR¶VODERUDWRU\RUÆ 'U)LJJ¶VODERUDWRU\

*HQHH[SUHVVLRQE\PLFURDUUD\
$VVHVVJHQHH[SUHVVLRQE\PLFURDUUD\SULRUWRDQGGXULQJWUHDWPHQWZLWKYDQGHWDQLEDQG
ERUWH]RPLELQFRUHELRSV\ VDPSOHV3DWLHQWVZLWK07&LQERWKWKHSKDVH,SRUWLRQRIWKHVWXG\DV
ZHOODVWKRVHLQWKHUDQGRPL]HGFRKRUWVZLOOEHHOLJLEOHIRUWKLVDQDO\VLV'U)RMR¶VODERUDWRU\
RU Æ 'U0HOW]HU¶VODERUDWRU\DQGÆ 'U)LJJ¶VODERUDWRU\

7XPRU6DPSOHDFTXLVLWLRQ
:KHQDYDLODEOHSDUDIILQHPEHGGHGWXPRUIURPGLDJQRVWLFELRSVLHVRUSULRUVXUJLFDOUHVHFWLRQV
ZLOOEHREWDLQHGDQGH[DPLQHGIRUWKHH[SUHVVLRQRI5(79(*)5DQG(*)5DQGWKHSKRVSKR
IRUPVRIWKHVHSURWHLQVDQGVRPDWRVWDWLQUHFHSWRUE\LPPXQRKLVWRFKHPLVWU\,+&,QWKHHYHQW
WKDWDELRSV\RUVXUJLFDOSURFHGXUHLVSHUIRUPHGIRUFOLQLFDOLQGLFDWLRQVRUUHVHDUFKSXUSRVHV
ZKLOHDSDWLHQWLVRQWKLVVWXG\WXPRUPD\DOVREHREWDLQHGDQGH[DPLQHGIRUH[SUHVVLRQRIWKHVH
WDUJHWVE\,+&3DWKRORJ\UHSRUWVKRXOGDFFRPSDQ\HDFKVSHFLPHQDQGWKHVSHFLPHQVKRXOGEH
ODEHOHGZLWKWKHSDWLHQW,'QXPEHU>7XPRUVKRXOGEHVKLSSHGWR5DYL0DGDQ0'
*HQLWRXULQDU\0DOLJQDQFLHV %UDQFK1&,%XLOGLQJ5RRP&HQWHU'ULYH
%HWKHVGD0'3KRQH)D[3DJH(PDLO
PDGDQU#PDLOQLKJRY@
3DWLHQWVZLWKWXPRUVWKDWDUHDFFHVVLEOHWRSHUFXWDQHRXVFRUHQHHGOHRUJDXJHELRSV\ZLWK
PLQLPDOULVNWRVXUURXQGLQJYLWDOVWUXFWXUHVZLOOEHDVNHGWRYROXQWDULO\XQGHUJRDFRUHQHHGOH
ELRSV\RIWKHWXPRUXQGHUORFDODQHVWKHVLDSULRUWRWKHLQLWLDWLRQRIWUHDWPHQWDQGDJDLQGXULQJ
WKHILUVWRUVHFRQGF\FOH$SRUWLRQRIWKHELRSV\ZLOOEHSURFHVVHGIRUKLVWRORJLFDQG
LPPXQRKLVWRFKHPLFDOHYDOXDWLRQE\'U0DULD0HULQRLQWKH/DERUDWRU\RI3DWKRORJ\7KH
UHPDLQGHUZLOOEHVQDSIUR]HQDQGGLYLGHGLQWRWZR2QHRIWKHWZRIUR]HQVDPSOHVZLOOEHVHQW
WRWKHODERUDWRU\RI'U:'RXJ)LJJIRUSURFHVVLQJFRGLQJDQGVWRUDJH$VHFRQGIUR]HQ
VDPSOHWRJHWKHUZLWKDPOEORRGVDPSOHLQOLWKLXPKHSDULQJUHHQWRSWXEHVKRXOGDOVREH
REWDLQHGDQGVHQWZLWKWKHIUR]HQWXPRUWLVVXHVDPSOHWR3DXO0HOW]HU0'>3DXO0HOW]HU0'
%OGJ5P%HWKHVGD0'3KRQH(PDLO
SPHOW]HU#PDLOQLKJRY@

3KDUPDFRNLQHWLFVRIYDQGHWDQLEDQGERUWH]RPLE
3KDUPDFRNLQHWLFVDPSOHVZLOORQO\EHGRQHGXULQJWKH3KDVH2QHSRUWLRQRIWKHVWXG\
 9DQGHWDQLE3KDUPDFRNLQHWLF6WXGLHV
x
3KDUPDFRNLQHWLF3.HYDOXDWLRQRIYDQGHWDQLEZLOOEHSHUIRUPHGIRUHDFKSDWLHQWDWWKHVWDUW
RIWUHDWPHQWF\FOHF\FOHGD\GD\V6HH$SSHQGL[$IRUGHWDLOVRIVDPSOH
FROOHFWLRQKDQGOLQJVKLSSLQJDQG3.:RUNVKHHW
x
$WOHDVWGD\VRIFRQWLQXRXVYDQGHWDQLEGRVLQJLVUHTXLUHGWRHQVXUHWKDWSDWLHQWVDUHDW
VWHDG\VWDWHDWWKHWLPHRIWKH3.VWXG\7KHUHIRUHSDWLHQWVZKRKDYHWKHLUGRVLQJRI



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
YDQGHWDQLELQWHUUXSWHGIRUWR[LFLW\GXULQJF\FOHRUZLOOKDYHWKH3.VDPSOLQJSHUIRUPHG
RQDVXEVHTXHQWF\FOH
x
P/EORRGVDPSOHVZLOOEHFROOHFWHGLQKHSDULQL]HGWXEHVSULRUWRWKHGRVHDQGWKHQ
DQGKRXUVDIWHUWKHGRVH3ODVPDZLOOEHVHSDUDWHGE\FHQWULIXJDWLRQDQGWKH
SODVPDVDPSOHZLOOEHVWRUHGDQGVKLSSHGIUR]HQ$QDGGLWLRQDOWURXJKVDPSOHVKDIWHU
WKHSUHYLRXVGRVHZLOOEHGUDZQRQGD\RIWKHVDPHF\FOH
 %RUWH]RPLE3KDUPDFRNLQHWLF6WXGLHV
x
%RUWH]RPLESKDUPDFRNLQHWLFVZLOOEHREWDLQHGDIWHUWKHILUVWGRVH&'DQGDJDLQDWWKH
VWDUWRIWUHDWPHQWF\FOHF\FOHGD\WRDVVHVVWKHHIIHFWLIDQ\RIYDQGHWDQLEDWVWHDG\
VWDWHRQERUWH]RPLE3.
x
$WOHDVWGD\VRIFRQWLQXRXVYDQGHWDQLEGRVLQJLVUHTXLUHGWRHQVXUHWKDWSDWLHQWVDUHDW
VWHDG\VWDWHDWWKHWLPHRIWKHQG 3.VHULHV7KHUHIRUHSDWLHQWVZKRKDYHWKHLU GRVLQJRI
YDQGHWDQLELQWHUUXSWHGIRUWR[LFLW\GXULQJF\FOHRUZLOOKDYHWKH3.VDPSOLQJSHUIRUPHG
RQDVXEVHTXHQWF\FOH
x
P/EORRGVDPSOHVZLOOEHFROOHFWHGLQKHSDULQL]HGWXEHVSULRUWRWKHGRVHDQGWKHQ
DQGKRXUVDIWHUWKHGRVH3ODVPDZLOOEHVHSDUDWHGE\FHQWULIXJDWLRQDQGWKH
SODVPDVDPSOHZLOOEHVWRUHG7KHERUWH]RPLEVDPSOHVZLOOEHSURFHVVHGLQWKHODERUDWRU\RI
'U'RXJ)LJJVHH$SSHQGL[$/DERUDWRU\0HWKRGRORJ\

6WXG\&DOHQGDU

6WXG\&DOHQGDUIRU&RPELQHG9DQGHWDQLEDQG%RUWH]RPLE7KHUDS\
:HHN

















HWF
3RVW
6WXG\
'D\RI&\FOH







'D\









+LVWRU\	3K\VLFDO
;
;
;
;
;
;
;
;
;
$VVHVVPHQWRIWR[LFLW\
;
;
;
;
;
;
;
;
;
9LWDOVLJQV	ZHLJKW
;
;
;
;
;
;
;
;
;
3HUIRUPDQFHVWDWXV
;
;
;
;
;
;
;
;
;
8ULQDO\VLV
;
;
;
;
;
;
;
;
;
8ULQH6HUXPSUHJQDQF\WHVW
;
&%&ZLWKGLIIHUHQWLDODQG
SODWHOHWV
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
37377
;
;
;
;
;
;
;
;
;
;
$FXWH&DUH3DQHO
;
;
;
;
;
;
;
;
;
;
;
;
;
0LQHUDO3DQHO
;
;
;
;
;
;
;
;
;
;
;
;
;
/)7V
;
;
;
;
;
;
;
;
;
;
;
;
;
7RWDOSURWHLQDOEXPLQ**7
;
;
;
;
;
;
;
;
;
;
76+
;
;
;
;
;E
OHDG(&*ZLWKFDOFXODWLRQRI
47F
;D
;
;
;
;
;
;
;
;



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
:HHN

















HWF
3RVW
6WXG\
'D\RI&\FOH







'D\









+LVWRU\	3K\VLFDO
;
;
;
;
;
;
;
;
;
5(&,67DVVHVVPHQW ZLWK&7
QHFNFKHVWDEGRPHQ
;H
;
;
;E
;
%ORRGVDPSOHVIRU&71&($
;
;
;
;
;E
;
3KDUPDFRNLQHWLFVVHH$SSHQGL[
$3KDVH,RQO\
;
;
;F
%LRSVLHVLQSWVZLWK07&
;
;
%LRSVLHVLQSWVZLWKRWKHUWKDQ
07&
;G
;G
D
(&*GRQHSULRUWRILUVWGRVHRIYDQGHWDQLEWKHQDQGKRXUVDIWHUGRVH
E
GRQHDWFRPSOHWLRQRIF\FOHVF\FOH GD\WKHQTF\FOHVWKHUHDIWHU'D\&\FOHVHWF
F
3.GRQHGD\
G
F\FOHGD\RUF\FOHGD\
H
ZLWKLQZHHNVSULRUWRF\FOHGD\

6WXG\&DOHQGDUIRU9DQGHWDQLE$ORQH
)RUSDWLHQWVZKRDUHUDQGRPL]HGWRYDQGHWDQLEDORQH$UP%LQWKH3KDVH,,SRUWLRQRIWKHWULDO
RUIRUWKRVHZKRKDYHGLVFRQWLQXHGERUWH]RPLELQHLWKHUWKH3KDVH,RU,,SRUWLRQVRIWKHWULDOWKH
VWXG\FDOHQGDUEHORZZLOOEHXVHG
:HHN







HWF
YLVLWVHYHU\
ZHHNV
WKURXJK
\HDUVWKHQ
HYHU\
PRQWKV I
3RVW6WXG\
'D\RI&\FOH





'D\







+LVWRU\	3K\VLFDO
;
;
;
;
;
;
;
$VVHVVPHQWRIWR[LFLW\
;
;
;
;
;
;
;
9LWDOVLJQV	ZHLJKW
;
;
;
;
;
;
;
3HUIRUPDQFHVWDWXV
;
;
;
;
;
;
;
8ULQDO\VLV
;
;
;
;
;
;
;
8ULQH6HUXPSUHJQDQF\WHVW
;
&%&ZLWKGLIIHUHQWLDODQG
SODWHOHWV
;
;
;
;
;
;
;
;
37377
;
;
;
;
;
;
;
;
$FXWH&DUH3DQHO
;
;
;
;
;
;
;
;
0LQHUDO3DQHO
;
;
;
;
;
;
;
;



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
:HHN







HWF
YLVLWVHYHU\
ZHHNV
WKURXJK
\HDUVWKHQ
HYHU\
PRQWKV I
3RVW6WXG\
'D\RI&\FOH





'D\







+LVWRU\	3K\VLFDO
;
;
;
;
;
;
;
/)7V
;
;
;
;
;
;
;
;
7RWDOSURWHLQDOEXPLQ**7
;
;
;
;
;
;
;
;
76+
;
;
;
;
;
OHDG(&*ZLWKFDOFXODWLRQRI
47F
;D
;
;
;
;
;
;
;
5(&,67DVVHVVPHQW ZLWK&7
QHFNFKHVWDEGRPHQ
;H
;
;
;
;
%ORRGVDPSOHVIRU&71&($
;
;
;
;
;
;
%LRSVLHVLQSWVZLWK07&
;
;
%LRSVLHVLQSWVZLWKRWKHUWKDQ
07&
;G
;G
D
(&*GRQHSULRUWRILUVWGRVHRIYDQGHWDQLE
E
GRQHDWFRPSOHWLRQRIF\FOHVF\FOHGD\WKHQTF\FOHVWKHUHDIWHU'D\&\FOHVHWF
F
3.GRQHGD\
G
F\FOHGD\RUF\FOHGD\
H
ZLWKLQZHHNVSULRUWRF\FOHGD\
I
$IWHU\HDUVRIWUHDWPHQWSDWLHQWVZLOOIROORZXSDWWKH&OLQLFDO&HQWHUHYHU\PRQWKV7KH\VKRXOGEHIROORZHG
E\WKHKRPHRQFRORJLVWDWWKHLQWHULPPRQWKLQWHUYDOVZLWKODEVDQG(.*VEXWQRVFDQV

&RQFXUUHQW7KHUDSLHV

2WKHU$QWLFDQFHU$JHQWV
3DWLHQWVPD\QRWUHFHLYHRWKHUIRUPVRIFDQFHUFKHPRWKHUDS\LPPXQRWKHUDS\RULQYHVWLJDWLRQDO
DJHQWVZKLOHHQUROOHGRQWKLVWULDODQGUHFHLYLQJYDQGHWDQLEDQGERUWH]RPLE

&RPSOHPHQWDU\DQG$OWHUQDWLYH7KHUDSLHV
$OOFRPSOHPHQWDU\RUDOWHUQDWLYHWKHUDSLHVLQFOXGLQJKHUEDOSUHSDUDWLRQVYLWDPLQVDQG
VXSSOHPHQWVVKRXOGEHGLVFXVVHGZLWKWKH3,RUDQ$VVRFLDWH,QYHVWLJDWRU$OODJHQWVDOORZHGE\
WKHLQYHVWLJDWRUVZLOOEHUHFRUGHGRQWKHHOHFWURQLFFDVHUHSRUWIRUPV

7K\URLG5HSODFHPHQW7KHUDS\
3DWLHQWVZKRDUHUHFHLYLQJWK\URLGUHSODFHPHQWWKHUDS\DWWKHWLPHRIHQUROOPHQWRQWRWKHVWXG\
VKRXOGEHPDLQWDLQHGRQWK\URLGUHSODFHPHQWWKHUDS\7KHGRVHVKRXOGEHDGMXVWHGWRPDLQWDLQ
WKH76+ZLWKLQWKHQRUPDOUDQJH3DWLHQWVZKRKDYHDQHOHYDWHG76+DWHQUROOPHQWDQGZKRDUH
QRWRQWK\URLGUHSODFHPHQWWKHUDS\VKRXOGEHVWDUWHGRQUHSODFHPHQWWKHUDS\DQGPDLQWDLQHGRQ
DGRVHWKDWVXSSUHVVHV76+LQWRWKHQRUPDOUDQJH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

$QWL+\SHUWHQVLYH7KHUDS\
3OHDVHUHIHUWR6HFWLRQIRULQIRUPDWLRQRQWKHXVHRIHQDODSULOIRUWKHPDQDJHPHQWRI
YDQGHWDQLEUHODWHGK\SHUWHQVLRQ

$JHQWVWKDW3URORQJWKH47F
 3OHDVHUHIHUWR$SSHQGL[&SULRUWRVWDUWLQJDQ\QHZVXSSRUWLYHFDUHGUXJV&RQFRPLWDQW
XVHRIPHGLFDWLRQVJHQHUDOO\DFFHSWHGDVKDYLQJDULVNRIFDXVLQJ7RUVDGHVGH3RLQWHV
UHIHUHQFH$SSHQGL[&7DEOHDUHQRWDOORZHGZLWKLQZHHNVRIUDQGRPL]DWLRQRU
GXULQJVWXG\DWOHDVWZHHNVIRU/HYRPHWKDG\O7KHVHGUXJVVKRXOGDOVREHDYRLGHG
IRUXSWRZHHNVIROORZLQJGLVFRQWLQXDWLRQRIVWXG\WUHDWPHQW
(IIHFWLYHZLWK$PHQGPHQW,$SSHQGL[& KDVEHHQXSGDWHGWRUHIOHFWDGGLWLRQDOGUXJVWKDWDUH
JHQHUDOO\DFFHSWHGE\DXWKRULWLHVWRKDYHDULVNRIFDXVLQJ7RUVDGHVGH3RLQWHV,IDIWHU
UHYLHZLQJWKHXSGDWHGOLVW RIGUXJVLQ7DEOH$SSHQGL[& WKHLQYHVWLJDWRUILQGVWKDWDQ\
RQJRLQJSDWLHQWLVQRZWDNLQJD*URXS GUXJWKHLQYHVWLJDWRULVWRPDQDJHWKHSDWLHQW
LPPHGLDWHO\DVIROORZV
x
7KHLQYHVWLJDWRUVKRXOGVZLWFKWKHSDWLHQWWRDQDOWHUQDWLYHGUXJDVVRRQDVSRVVLEOH
x
,ILWLVQRWSRVVLEOHWRVZLWFKWKHSDWLHQWWRDQDOWHUQDWLYHGUXJWKHSDWLHQWZLOOKDYHWR
VWRSYDQGHWDQLE
 &RDGPLQLVWUDWLRQRIGUXJVWKDWLQVRPHUHSRUWVPLJKWEHDVVRFLDWHGZLWK7RUVDGHVGH
3RLQWHVEXWDWWKLVWLPHODFNVXEVWDQWLDOHYLGHQFHRI7RUVDGHVGH3RLQWHVVHH$SSHQGL[
&7DEOHVKRXOGEHDYRLGHGZLWKLQZHHNVRIUDQGRPL]DWLRQDQGGXULQJVWXG\
+RZHYHUWKHVHGUXJVZLOOEHDOORZHGDWWKHGLVFUHWLRQRIWKH,QYHVWLJDWRULIFRQVLGHUHG
DEVROXWHO\QHFHVVDU\,QVXFKFDVHVWKHVXEMHFWPXVWEHFORVHO\PRQLWRUHGLQFOXGLQJ
UHJXODUFKHFNVRI47FDQGHOHFWURO\WHV)RUSDWLHQWVZKRVWDUWRQ WKHGUXJVLQWKLV
JURXSZKLOHRQWKHVWXG\WUHDWPHQWWKH(&*PXVWEHFKHFNHGZLWKLQKRXUVRI
FRPPHQFLQJWKHFRQFRPLWDQWPHGLFDWLRQDQGWKHQDWOHDVWRQFHSHUZHHNZKLOHWKH
SDWLHQWUHPDLQVRQWKHPHGLFDWLRQ7KHIUHTXHQF\RI(&*PRQLWRULQJFRXOGUHYHUWWR
WKHVWDQGDUGVFKHGXOHLIQR47FSURORQJDWLRQKDVEHHQQRWHGGXULQJZHHNVRIFR
DGPLQLVWUDWLRQRIDGUXJIURP$SSHQGL[&7DEOH7KHHOHFWURO\WHVVKRXOGEH
PDLQWDLQHGZLWKLQWKHQRUPDOUDQJHXVLQJVXSSOHPHQWVLIQHFHVVDU\
(IIHFWLYHZLWK$PHQGPHQW,$SSHQGL[& KDVEHHQXSGDWHGWRUHIOHFWDGGLWLRQDOGUXJVWKDWPLJKW
EHDVVRFLDWHGZLWK7RUVDGHVGH3RLQWHVEXWDWWKLVWLPHODFNVXEVWDQWLDOHYLGHQFHRI7RUVDGHVGH
3RLQWHV,IDIWHUUHYLHZLQJWKHXSGDWHGOLVWLQ7DEOH$SSHQGL[& WKHLQYHVWLJDWRU ILQGVWKDW
DQ\RQJRLQJSDWLHQWLVQRZWDNLQJD*URXSGUXJWKHLQYHVWLJDWRULVWRPDQDJHWKHSDWLHQW
LPPHGLDWHO\DVIROORZV
x
7KHLQYHVWLJDWRUVKRXOGVZLWFKWKHSDWLHQWWRDQDOWHUQDWLYHGUXJDVVRRQDVSRVVLEOH
x
,ILWLVQRWSRVVLEOHWRVZLWFKWKHSDWLHQWWRDQDOWHUQDWLYHGUXJWKHLQYHVWLJDWRUPXVWEHJLQ
PRQLWRULQJWKHSDWLHQWDFFRUGLQJWRLQVWUXFWLRQSURYLGHGLQILUVWSDUDJUDSKRIWKLVVHFWLRQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7KLVPRQLWRULQJLQFOXGHVDGGLWLRQDO(&*VDQGODERUDWRU\DVVHVVPHQWVRIHOHFWURO\WHVWR
HQVXUHWKHSDWLHQW¶VVDIHW\
 2WKHUPHGLFDWLRQWKDQGHVFULEHGLQ6HFWLRQVDQG ZKLFKLVFRQVLGHUHG
QHFHVVDU\IRUWKHSDWLHQW¶VVDIHW\DQGZHOOEHLQJ PD\EHJLYHQDWWKHGLVFUHWLRQRIWKH
LQYHVWLJDWRU
(IIHFWLYHZLWK$PHQGPHQW,$SSHQGL[& KDVEHHQXSGDWHGWRUHIOHFWWKHPRVWFXUUHQWOLVWRI
GUXJVWKDW3URORQJWKH47,QWHUYDODQGRU,QGXFH7RUVDGHVGH3RLQWHV,IWKHSDWLHQWLVLQQHHGRI
DGUXJSUHYLRXVO\IRXQGRQWKH*URXSRU*URXSOLVW$SSHQGL[&EXWWKHGUXJLVQRORQJHU
RQHLWKHUOLVWRQ$SSHQGL[& LWLVDFFHSWDEOHWRSUHVFULEHVXFKDGUXJWRWKHSDWLHQWDIWHUWKH
$PHQGPHQWDSSURYDO
6XSSRUWLYHFDUHPHDVXUHVDQGV\PSWRPDWLFWUHDWPHQWIRUDQ\WUHDWPHQWDVVRFLDWHGWR[LFLW\PD\
EHLQVWLWXWHGRQFHWKHILUVWVLJQVRIWR[LFLW\RFFXUVHH6HFWLRQ DQG6HFWLRQ  IRUJXLGDQFHRQ
WR[LFLW\PDQDJHPHQW

6XUJLFDO*XLGHOLQHV
(OHFWLYHVXUJLFDOSURFHGXUHVGHQWDOH[WUDFWLRQVPHGLSRUWSODFHPHQWIRUSDWLHQWVHQUROOHGRQ
VWXG\ZLOOEHVFKHGXOHGGXULQJWKHODVWZHHNRIDF\FOHLQRUGHUWRDYRLGWKHQDGLUSHULRGVIRU
OHXNRF\WHVDQGSODWHOHWV$OOSURFHGXUHVVKRXOGEHGRQHRQO\ZKHQFRXQWVDUHVXIILFLHQWO\
UHFRYHUHGWROHVVHQDQ\ULVNRILQIHFWLRQDQGRUEOHHGLQJ5DGLRIUHTXHQF\DEODWLRQ5)$ZLOO
EHDOORZHGIRUV\PSWRPDWLFUHOLHIRISDLQ

5DGLDWLRQ7KHUDS\*XLGHOLQHV
1RFRQFXUUHQWUDGLDWLRQWKHUDS\ZLOOEHDOORZHGRQVWXG\

2II7UHDWPHQW&ULWHULD
x
7R[LFLW\ 3DWLHQWVZKRGHYHORSDYDQGHWDQLEDQGRUERUWH]RPLEUHODWHG'/76HFWLRQ
WKDWGRHVQRWUHFRYHUWRJUDGHLQGD\V25ZKRGHYHORSDYDQGHWDQLEDQGRU
ERUWH]RPLEUHODWHG'/7RQGRVHOHYHOGRVHVZLOOGLVFRQWLQXHSURWRFROWKHUDS\6HH
6HFWLRQVWRIRUFULWHULDRQGLVFRQWLQXDWLRQRIYDQGHWDQLEIRUK\SHUWHQVLRQ47F
SURORQJDWLRQDQGVNLQWR[LFLW\
x
3URJUHVVLYH'LVHDVH 3DWLHQWVZLWKFOLQLFDORUUDGLRJUDSKLFHYLGHQFHRISURJUHVVLYHGLVHDVH
ZLOOEHUHPRYHGIURPVWXG\VHH6HFWLRQ,ISRVVLEOHWXPRUSURJUHVVLRQVKRXOGEH
GRFXPHQWHGUDGLRJUDSKLFDOO\
1RWH $WWKHGLVFUHWLRQRIWKHSULQFLSDOLQYHVWLJDWRULQFRQVXOWDWLRQZLWKRWKHUSK\VLFLDQV
LQYROYHGLQWKHFDUHRIWKHSDWLHQWYDQGHWDQLEPD\EHFRQWLQXHGDIWHUSURJUHVVLYHGLVHDVHKDV
EHHQGRFXPHQWHGDQGUHFRUGHGDVVXFKLQWKHUHVHDUFKFKDUW&RQWLQXDWLRQRIYDQGHWDQLEZLOO
EHSRVVLEOHLILQWKHRSLQLRQRIWKRVHLQYROYHGLQWKHFDUHRIWKHSDWLHQWWKHSDWLHQWLV
WROHUDWLQJWKHUDS\ZHOODQGWKHSDFHRIGLVHDVHSURJUHVVLRQDSSHDUVWREHUHGXFHGZKHQ
FRPSDUHGWRWKDWEHIRUHWKHUDS\EHJDQ7KHUHGXFWLRQLQWKHSDFHRIGLVHDVHPXVWEH
FRQVLGHUHGPHDQLQJIXOVXFKWKDWLWLVIHOWWKHWKHUDS\LVSURYLGLQJEHQHILWWRWKHSDWLHQWDQG
PLJKWLIFRQWLQXHGSURYLGHIXUWKHUEHQHILW7KLVSROLF\UHFRJQL]HVWKDWWKHUHDUHQRRWKHU
DSSURYHGWKHUDSLHVIRUWKLVGLVHDVHDQGLIEHQHILWLVEHLQJDFKLHYHGLWPLJKWEHLQWKHEHVW
LQWHUHVWRIWKHSDWLHQWWRFRQWLQXHUHFHLYLQJDWKHUDS\WKDWLVZHOOWROHUDWHG



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x
2WKHU0HGLFDO5HDVRQ

7KHGHYHORSPHQWRIDFRQFXUUHQWVHULRXVPHGLFDOFRQGLWLRQWKDWPLJKWSUHFOXGHRU
FRQWUDLQGLFDWHWKHIXUWKHUDGPLQLVWUDWLRQRIYDQGHWDQLE

,WLVGHHPHGLQWKHEHVWLQWHUHVWRIWKHSDWLHQWDVGHWHUPLQHGE\WKH3ULQFLSDO,QYHVWLJDWRU
7KHUHDVRQVIRUGLVFRQWLQXDWLRQRIVWXG\DJHQWVVKRXOGEHQRWHGLQWKHSDWLHQW
VPHGLFDO
UHFRUG

3URWRFRO QRQFRPSOLDQFH RULQDELOLW\WRIROORZSURWRFROLQVWUXFWLRQV DVGHWHUPLQHGE\WKH
3ULQFLSDO,QYHVWLJDWRU
 2II7UHDWPHQW(YDOXDWLRQ
7KHIROORZLQJWHVWVRUSURFHGXUHVVKRXOGEHSHUIRUPHGLISRVVLEOHLPPHGLDWHO\SULRUWRWKHWLPH
DSDWLHQWFRPHVRIIVWXG\UHJDUGOHVVRIWKHUHDVRQXQOHVVWKHWHVWRUSURFHGXUHVKDYHEHHQ
SHUIRUPHGZLWKLQWKHSDVWWZRZHHNV
x
3K\VLFDOH[DPLQDWLRQ
x
3HUIRUPDQFHVWDWXV
x
$VVHVVPHQWRIFOLQLFDOWR[LFLW\DGYHUVHHYHQWV
x
&RPSOHWHEORRGFRXQWZLWKGLIIHUHQWLDODQGSODWHOHWFRXQW
x
(OHFWURO\WHV%81FUHDWLQLQHFDOFLXPPDJQHVLXPSKRVSKRUXVXULFDFLG$/7WRWDO
DQGGLUHFWELOLUXELQDONDOLQHSKRVSKDWDVHDOEXPLQDQGFUHDWLQHNLQDVH
x
6HUXP&71DQG&($GUDZQDIWHUDKRXUIDVWSODFHGRQLFHDQGVHQWWRWKHODE
LPPHGLDWHO\
x
5DGLRJUDSKLF HYDOXDWLRQRIPHDVXUDEOHRUHYDOXDEOHGLVHDVH
 3RVWWUHDWPHQW)ROORZ8S
$QREMHFWLYHRIWKLVVWXG\LVWRGHWHUPLQHWKHSURJUHVVLRQIUHHVXUYLYDODQGRYHUDOOVXUYLYDOLQ
DGXOWVWUHDWHGZLWKWKLVFRPELQDWLRQRIGUXJV,IDSDWLHQWLVUHPRYHGIURPWUHDWPHQWIRUDUHDVRQ
RWKHUWKDQGLVHDVHSURJUHVVLRQWKH\ZLOOFRQWLQXHWREHIROORZHGDW PRQWKLQWHUYDOVLQRUGHU
WRDVVHVVWKHLUVWDWXV7KLVIROORZXSPD\EHFRQGXFWHGLQSHUVRQRUUHPRWHO\YLDSKRQHFDOOVDQG
ZULWWHQUHFRUGVIURPWKHSDWLHQWDQGWKHLUORFDOSK\VLFLDQ)ROORZXSZLOOFRQWLQXHXQWLOVXFK
WLPHWKDWWKHSDWLHQWKDVGLVHDVHSURJUHVVLRQRUGHDWK7KHVHSDWLHQWVZLOOUHPDLQµRQVWXG\¶EXW
µRIIWUHDWPHQW¶GXULQJWKLVSHULRGRIIROORZXS
 2II6WXG\&ULWHULD
x
3DWLHQWZLWKGUDZDORIFRQVHQW5HDVRQVPXVWEHQRWHGRQWKHSDWLHQW
VPHGLFDOUHFRUG
x
/RVWWRIROORZXS
x
'LVHDVHSURJUHVVLRQUHTXLULQJWUHDWPHQWRUGHDWK
1RWH(YHU\DWWHPSWZLOOEHPDGHWRFROOHFWGDWDRQVXUYLYDOHYHQLIDSDWLHQWKDVPHW³RII
VWXG\´FULWHULD
2II6WXG\3URFHGXUH $XWKRUL]HGVWDIIPXVWQRWLI\&HQWUDO5HJLVWUDWLRQ2IILFH&52ZKHQD
SDWLHQWLVWDNHQRIIVWXG\$QRIIVWXG\IRUPIURPWKHZHEVLWH
KWWSKRPHFFUFDQFHUJRYLQWUDHOLJLELOLW\ZHOFRPHKWPPDLQSDJHPXVWEHFRPSOHWHGDQG
ID[HGWR



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

6833257,9(&$5(,668(6

&XWDQHRXV

3UHYHQWLYHPHDVXUHVIRUFXWDQHRXVWR[LFLW\
,WLVVWURQJO\UHFRPPHQGHGWKDWDOOSDWLHQWVIROORZDSURJUDPRIVXQSURWHFWLYHPHDVXUHVZKLOH
UHFHLYLQJVWXG\WKHUDS\DQGIRU ZHHNVDIWHUGLVFRQWLQXLQJVWXG\WKHUDS\7KHDLPLVWR
UHGXFHWKHULVNRIGHYHORSPHQWRIFXWDQHRXVWR[LFLW\PLQLPL]HLWVVHYHULW\DQGUHGXFHWKHQHHG
IRUGRVHUHGXFWLRQRIVWXG\WKHUDS\

6XJJHVWHGUHJLPHQVIRUWKHPDQDJHPHQWRIFXWDQHRXVWR[LFLWLHV
 $YDULHW\RIDJHQWVFDQEHXVHGWRPDQDJHVNLQUDVKHV7KHVHLQFOXGHPLOGWRPRGHUDWH
VWUHQJWKVWHURLGFUHDPVWRSLFDORUV\VWHPLFDQWLELRWLFVDQGV\VWHPLFDQWLKLVWDPLQHV
7RSLFDODQWLKLVWDPLQHVDQGUHWLQRLGFUHDPVDUHQRWUHFRPPHQGHGEHFDXVHRIGU\LQJ
DQGRULUULWDWLQJHIIHFWVRQWKHVNLQ7KH\DUHRQO\WREHXVHGZLWKFDXWLRQZKHQ
QHFHVVDU\3RVVLEOHWRSLFDOWUHDWPHQWVLQFOXGHEXWDUHQRWOLPLWHGWRWKRVHWKDWFRQWDLQ
GLPHWKLFRQHZKLFKLVDPRLVWXUHEDUULHUWKDWUHGXFHVGU\VNLQ$SSOLFDWLRQRI FROORLGDO
RDWPHDOORWLRQVPD\EHEHQHILFLDOEHIRUHPRYLQJWRPHGLFDWLRQFRQWDLQLQJWUHDWPHQWV
 3RVVLEOHSURGXFWVLQFOXGHEXWDUHQRWOLPLWHGWRWRSLFDOK\GURFRUWLVRQHRU
FUHDPIOXRFLQRORQH&OLQGDP\FLQJHO3LPHFUROLPXVFUHDP'R[\F\FOLQH
0LQRF\FOLQHRU7HWUDF\FOLQH
 &RQVXOWDWLRQZLWK'HUPDWRORJ\LVHQFRXUDJHGWRDVVLVWLQWKHVHOHFWLRQRIWUHDWPHQW

*DVWURLQWHVWLQDO*, 1DXVHD9RPLWLQJ

3UHYHQWLYHPHDVXUHVIRUQDXVHDDQGRUYRPLWLQJ
 7KHGRVHRIYDQGHWDQLEPD\EHUHSHDWHGLIHPHVLVRFFXUVZLWKLQPLQXWHVRIWDNLQJWKH
GRVH
 1DXVHDYRPLWLQJRUERWKPD\EHFRQWUROOHGZLWKDQWLHPHWLFWKHUDS\,QVXEMHFWVZKR
KDYHHPHVLVDQGDUHXQDEOHWRUHWDLQYDQGHWDQLEHYHU\DWWHPSWVKRXOGEHPDGHWR
REWDLQFRQWURORIQDXVHDDQGYRPLWLQJXVLQJFRQYHQWLRQDODQWLHPHWLFGUXJV7KHUHLVD
ULVNWKDWWKHXVHRI+7DQWDJRQLVWVLQFOXGLQJRQGDQVHWURQ JUDQLVHWURQSDORQRVHWURQ
DQGWURSLVHWURQ PD\SURORQJ47FLQWHUYDOWKHUHIRUHWKHVHDJHQWVDUHSURKLELWHG6HH
$SSHQGL[&IRUDOLVWRIDJHQWVWKDWSURORQJWKH47F$JHQWVWKDWPD\EHWULHGILUVW
LQFOXGHWKHIROORZLQJSURFKORUSHUD]LQHPHWRFORSUDPLGHORUD]HSDPRU
GLSKHQK\GUDPLQH

6XJJHVWHGUHJLPHQIRUWKHPDQDJHPHQWRIQDXVHDDQGRUYRPLWLQJ
 1DXVHDDQGYRPLWLQJPD\EHFRQWUROOHGZLWKDQWLHPHWLFWKHUDS\7KHUHLVDULVNWKDWWKH
XVHRI+7DQWDJRQLVWVLQFOXGLQJRQGDQVHWURQ JUDQLVHWURQSDORQRVHWURQDQG
WURSLVHWURQ PD\SURORQJ47FLQWHUYDOWKHUHIRUHWKHVHDJHQWVDUHSURKLELWHG 6HH
$SSHQGL[&IRUDOLVWRIDJHQWVWKDWSURORQJWKH47F$JHQWVWKDWPD\EHWULHGILUVW
LQFOXGHWKHIROORZLQJSURFKORUSHUD]LQHPHWRFORSUDPLGHORUD]HSDPRU
GLSKHQK\GUDPLQH
 (OHFWURO\WHVVKRXOGEHFORVHO\PRQLWRUHGLQWKHHYHQWRISHUVLVWHQWGLDUUKHD9DQGHWDQLE
VKRXOGEHKHOGLQSDWLHQWVZKRGHYHORSHOHFWURO\WHDEQRUPDOLWLHVIURPGLDUUKHDXQWLOWKH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
HOHFWURO\WHDEQRUPDOLWLHVDUHFRUUHFWHGEHFDXVHRIWKHULVNRI47FSURORQJDWLRQDQG
VXEVHTXHQWDUUK\WKPLDV

*DVWURLQWHVWLQDO*, 'LDUUKHD

3UHYHQWLYHPHDVXUHVIRUGLDUUKHD
'LDUUKHDWKDWRFFXUVDIWHULQLWLDWLRQRIYDQGHWDQLELVOLNHO\WREHWUHDWPHQWUHODWHGDQGVKRXOGEH
WUHDWHGV\PSWRPDWLFDOO\ZLWKVWDQGDUGPHGLFDWLRQVWRDYRLGGRVHPRGLILFDWLRQRULQWHUUXSWLRQLI
SRVVLEOH$QLQFUHDVHLQWKHIUHTXHQF\RI VWRROVVXFKWKDWWKHSDWLHQWLVKDYLQJWZRDGGLWLRQDO
VWRROVSHUGD\DERYHEDVHOLQHDQGWKHVHDUHORRVHLQFKDUDFWHUVKRXOGSURPSWWKHLQVWLWXWLRQRI DQ
DQWLGLDUUKHDOUHJLPHQ3DUWRIWKLVUHJLPHQVKRXOGLQFOXGHHOHFWURO\WHVXSSOHPHQWDWLRQZLWK
UHJXODUODERUDWRU\PRQLWRULQJZKHQDSSURSULDWHWRPDLQWDLQHOHFWURO\WHVZLWKLQQRUPDOOLPLWV
DQGSUHYHQWDQLQFUHDVHGULVNRI47FSURORQJDWLRQWKDWPLJKWRFFXUZLWKYDQGHWDQLE

6XJJHVWHGUHJLPHQIRUWKHPDQDJHPHQWRIGLDUUKHD
 ,IGLDUUKHDGHYHORSVDQGGRHVQRWKDYHDQLGHQWLILDEOHFDXVHRWKHUWKDQYDQGHWDQLERU
ERUWH]RPLE WKHUDS\DGPLQLVWHUORSHUDPLGHPJSRTKZKLOHDZDNHDQGORSHUDPLGH
PJSRTKDWQLJKWXQWLOWKHGLDUUKHDVWRSV,IWKHGLDUUKHDUHFXUVZLWKLQKRI
VWRSSLQJORSHUDPLGHWKHQUHVWDUWDQGFRQWLQXHORSHUDPLGHXQWLOWKHSDWLHQWLVIUHHRI
GLDUUKHDIRUKRXUVDWZKLFKWLPHWKHORSHUDPLGHZLOOEHGLVFRQWLQXHG7KLVUHJLPHQ
FDQEHUHSHDWHGIRUHDFKGLDUUKHDOHSLVRGH7KHRFFXUUHQFHRIOLTXLGVWRROVDIWHUDK
GLDUUKHDIUHHSHULRGZLOO EHFRQVLGHUHGDQHZHSLVRGH127( $OWKRXJKWKLVGRVDJH
UHJLPHQPD\H[FHHGWKHXVXDOGRVDJHUHFRPPHQGDWLRQVPJGD\IRUORSHUDPLGHLW
LVWKHGRVLQJUHJLPHQVSHFLILHGIRUGLDUUKHDDVVRFLDWHGZLWKLULQRWHFDQDGPLQLVWUDWLRQ
DQGKDVEHHQVXFFHVVIXOO\DQG VDIHO\XWLOL]HG
 ,IDSDWLHQWGHYHORSVEORRGRUPXFXVLQWKHVWRROGHK\GUDWLRQRUKHPRG\QDPLF
LQVWDELOLW\RULIGLDUUKHDSHUVLVWV!KGHVSLWHORSHUDPLGHGLVFRQWLQXHORSHUDPLGHDQG
KRVSLWDOL]HWKHSDWLHQWIRUWUHDWPHQWZLWK,9IOXLGVDVQHHGHG
 )RUSHUVLVWHQWGLDUUKHDRWKHUSRWHQWLDOO\KHOSIXOWUHDWPHQWVPD\DOVREHDGPLQLVWHUHG
VXFKDVVRPDWRVWDWLQDQDORJXHVSURSDQWKHOLQH WLQFWXUHRIRSLXPHWF
 (OHFWURO\WHVVKRXOGEHFORVHO\PRQLWRUHGLQWKHHYHQWRISHUVLVWHQWGLDUUKHD9DQGHWDQLE
VKRXOGEHKHOGLQSDWLHQWVZKRGHYHORSHOHFWURO\WHDEQRUPDOLWLHVIURPGLDUUKHDXQWLOWKH
HOHFWURO\WHDEQRUPDOLWLHVDUHFRUUHFWHGEHFDXVHRIWKHULVNRI47FSURORQJDWLRQDQG
VXEVHTXHQWDUUK\WKPLDV

0DQDJHPHQWRI07&5HODWHG'LDUUKHD
%HFDXVHGLDUUKHDPD\EHDFRPSRQHQWRI07&ZLWKHOHYDWHG&71QRGRVHPRGLILFDWLRQVZLOO
EHPDGHIRUSUHH[LVWLQJFDVHVRIGLDUUKHD3DWLHQWVZKRDUHUHFHLYLQJV\PSWRPDWLFWUHDWPHQWIRU
GLDUUKHDDWVWXG\HQWU\FDQFRQWLQXHWKHWUHDWPHQWZKLOHRQVWXG\,I&71OHYHOVDUHHOHYDWHGDW
VWXG\HQWU\LQWKHVHSDWLHQWVDQGWKHOHYHOVGURSE\!RQYDQGHWDQLEWKHUDS\DQDWWHPSW
VKRXOGEHPDGHWRWDSHURUGLVFRQWLQXHWKHV\PSWRPDWLFDQWLGLDUUKHDOWKHUDS\$GXOWVZLWK07&
DQG&71UHODWHGGLDUUKHDKDGLPSURYHPHQWLQGLDUUKHDRQYDQGHWDQLEVRV\PSWRPDWLFWUHDWPHQW
IRU07&UHODWHGGLDUUKHDVKRXOGQRWEHVWDUWHGDIWHUVWXG\HQWU\IRUDWOHDVWZHHNVWRGHWHUPLQH
ZKHWKHUYDQGHWDQLEFRXOGDOOHYLDWHWKHGLDUUKHD
1RWH3DWLHQWVVKRXOGQRWEHWUHDWHGZLWKVKRUW RUORQJDFWLQJRFWUHRWLGHZKLOHRQVWXG\EHFDXVH
LWPD\KDYHDQLQGHSHQGHQWWKHUDSHXWLFHIIHFWRQWKHELRPDUNHUHQGSRLQWV&71DQG&($



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

+\SHUWHQVLRQ

3UHYHQWLYHPHDVXUHVIRUK\SHUWHQVLRQ
3DWLHQWVZKRGHYHORS&7&$(JUDGHV K\SHUWHQVLRQPD\FRQWLQXHRQWKHUDS\LIEORRG
SUHVVXUHLVFRQWUROOHGRQDQWLK\SHUWHQVLYHPHGLFDWLRQ,IEORRGSUHVVXUHFDQQRWEHVWDELOL]HGZLWK
LQFUHDVHGDQWLK\SHUWHQVLYHPHGLFDWLRQVWXG\WUHDWPHQWPXVWEHGLVFRQWLQXHGDQGFDQQRWEH
UHVXPHGXQWLOEORRGSUHVVXUHLVFRQWUROOHGWREDVHOLQHOHYHO

6XJJHVWHGUHJLPHQIRUWKHPDQDJHPHQWRIK\SHUWHQVLRQ
1RWH 7KHUHFRPPHQGDWLRQVEHORZFRQVLGHUERWKWKH&7&$(JUDGHRIWKHK\SHUWHQVLRQDVZHOO
DVWKHSDWLHQW¶VEDVHOLQHEORRGSUHVVXUHYDOXHV

6LQJOH$JHQW$QWL+\SHUWHQVLYH7KHUDS\
 3DWLHQWVZLWKDSHUVLVWHQWO\!KHOHYDWHG'%3WKDWLV  PP+JRUPP+J
DERYHWKHLUEDVHOLQHRUZLWKRI'%3PHDVXUHPHQWVRQDVLQJOHGD\WKDWDUH 
PP+JDERYHWKHLUEDVHOLQHVKRXOGEHVWDUWHGRQHQDODSULODWDGRVHRIPJ32RQFH
GDLO\
 %ORRGSUHVVXUHVKRXOGEHPRQLWRUHGKRXUVDIWHUWKHILUVWGRVHGD\KRXUVDIWHUWKH
ILUVWGRVHDQGWKHQHYHU\KRXUVXQWLOWKH'%3LV PP+JRUWKHSDWLHQW¶V
EDVHOLQH[PHDVXUHPHQWV
 ,IWKH'%3UHPDLQVHOHYDWHGDWPP+JDERYHWKHSDWLHQW¶VEDVHOLQHDQG PP
+JDIWHUGD\VRIHQDODSULOWKHGRVHRIHQDODSULOFDQEHGRXEOHGLIWKHSDWLHQWKDVQRW
H[SHULHQFHGHQDODSULOUHODWHGWR[LFLW\DWWKHVWDUWLQJGRVH
 ,IWKH'%3UHPDLQVHOHYDWHGDWPP+JDERYHWKHDERYHWKHSDWLHQW¶VEDVHOLQHDQG
 PP+JDIWHUGD\VRIHQDODSULOGHVSLWHDGRXEOLQJRIWKHGRVHDVHFRQGDQWL
K\SHUWHQVLYHDJHQWPD\EHDGGHG,IWKH'%3UHPDLQVHOHYDWHGDWPP+JDERYH
WKHDERYHWKHSDWLHQW¶VEDVHOLQHDQG PP+JDIWHUGD\VRIWZRDQWL
K\SHUWHQVLYHDJHQWVWKHQWKHYDQGHWDQLEVKRXOGEHKHOGVHH6HFWLRQ
 ,IWKH'%3LQFUHDVHVWR!PP+JDERYHWKHEDVHOLQHRU!PP+JRQ RI
PHDVXUHPHQWVDWDQ\WLPHGXULQJDQWLK\SHUWHQVLYHWUHDWPHQWRUWKHSDWLHQWGHYHORSV
JUDGHK\SHUWHQVLRQDWDQ\WLPHWKHQWKHYDQGHWDQLEVKRXOGEHKHOG
 $QWLK\SHUWHQVLYHWKHUDS\VKRXOGEHFRQWLQXHGWRPDLQWDLQWKH'%3PP+JRUWKH
SDWLHQW¶VEDVHOLQHDQGQRPRUHWKDQPP+JRUPP+JDERYHWKHSDWLHQW¶V
EDVHOLQH

'$7$&2//(&7,21DQG(9$/8$7,21

'DWD&ROOHFWLRQ
&OLQLFDOGDWDZLOOEHHQWHUHGLQWRWKH1&,&'HOHFWURQLFGDWDEDVHDWOHDVWRQFHHYHU\ZHHNV
ZKHQSDWLHQWVDUHHQUROOHGRQWKHWULDO3URWRFROVSHFLILFHOHFWURQLF&DVH5HSRUW)RUPVH&5)V
ZLOOEHGHYHORSHGIRUWKLVWULDOLQ&'
7KH3,ZLOOEHUHVSRQVLEOHIRURYHUVHHLQJHQWU\RIGDWDLQWRDQLQKRXVHSDVVZRUGSURWHFWHG
HOHFWURQLFV\VWHPDQGHQVXULQJGDWDDFFXUDF\FRQVLVWHQF\DQGWLPHOLQHVV7KHSULQFLSDO
LQYHVWLJDWRUDVVRFLDWHLQYHVWLJDWRUVUHVHDUFKQXUVHVDQGRUDFRQWUDFWHGGDWDPDQDJHUZLOODVVLVW
ZLWKWKHGDWDPDQDJHPHQWHIIRUWV$OOKXPDQVXEMHFWVSHUVRQDOO\LGHQWLILDEOHLQIRUPDWLRQ3,,
DVGHILQHGLQDFFRUGDQFHWRWKH+HDOWK,QVXUDQFH3RUWDELOLW\DQG$FFRXQWDELOLW\$FWHOLJLELOLW\



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
DQGFRQVHQWYHULILFDWLRQZLOOEHUHFRUGHG3ULPDU\GDWDREWDLQHGGXULQJWKHFRQGXFWRIWKH
SURWRFROZLOOEHNHSWLQVHFXUHQHWZRUNGULYHVRULQDSSURYHGDOWHUQDWLYHVLWHVWKDWFRPSO\ZLWK
1,+VHFXULW\VWDQGDUGV3ULPDU\DQGILQDODQDO\]HGGDWDZLOOKDYHLGHQWLILHUVVRWKDWUHVHDUFK
GDWDFDQEHDWWULEXWHGWRDQLQGLYLGXDOKXPDQVXEMHFWSDUWLFLSDQW
(QGRIVWXG\SURFHGXUHV'DWDZLOOEHVWRUHGLQORFNHGFDELQHWVDQGLQDSDVVZRUGSURWHFWHG
GDWDEDVHXQWLOLWLVQRORQJHURIVFLHQWLILFYDOXH
/RVVRUGHVWUXFWLRQRIGDWD6KRXOGZHEHFRPHDZDUHWKDWDPDMRUEUHHFKLQRXUSODQWRSURWHFW
VXEMHFWFRQILGHQWLDOLW\DQGWULDOGDWDKDVRFFXUUHGWKH,5%ZLOOEHQRWLILHG
'DWDZLOOQRWEHGLVWULEXWHGRXWVLGH1,+ZLWKRXW,5%QRWLILFDWLRQ
'U)RMRZLOOFRQWLQXHWRKDYHDFFHVVWRWKHGDWDIRUSXUSRVHVRIGDWDDQDO\VLVDQGSXEOLFDWLRQ
ZKHQKHLVDW&ROXPELD8QLYHUVLW\+HZLOOKDYHDFFHVVWRWKHGDWDYLDDVHFXUHIODVKGULYH,WLV
DOVRSRVVLEOHWKDWGDWD ZLOOEHVHQWWRKLPYLDHQFU\SWHGHPDLO

6RXUFH'RFXPHQWV
6RXUFHGRFXPHQWVDUHGHILQHGDVRULJLQDOGRFXPHQWVGDWDDQGUHFRUGV7KLVPD\LQFOXGH
KRVSLWDOUHFRUGVFOLQLFDODQGRIILFHFKDUWVODERUDWRU\GDWDLQIRUPDWLRQSDWLHQWV
GLDULHVRU
HYDOXDWLRQFKHFNOLVWVSKDUPDF\GLVSHQVLQJDQGRWKHUUHFRUGVUHFRUGHGGDWDIURPDXWRPDWHG
LQVWUXPHQWVPLFURILFKHVSKRWRJUDSKLFQHJDWLYHVPLFURILOPRUPDJQHWLFPHGLD;UD\V7KH
LQYHVWLJDWRUZLOOSHUPLWWULDOUHODWHGPRQLWRULQJDXGLWV,5%UHYLHZDQGUHJXODWRU\LQVSHFWLRQV
SURYLGLQJGLUHFWDFFHVVWRVRXUFHGRFXPHQWV

&DVH5HSRUW)RUPV
'DWDPD\EHHQWHUHGIURPWKHVRXUFHGRFXPHQWVGLUHFWO\LQWRH&5)VLQ&'IRUHDFKSDWLHQW
HQUROOHGLQWKLVVWXG\
7KHSULQFLSDOLQYHVWLJDWRURUUHVHDUFKQXUVHZLOOUHYLHZWKHH&5)VIRUFRPSOHWHQHVVDQG
DFFXUDF\,QGHSHQGHQWDXGLWVPD\DOVREHFRQGXFWHGE\1&,SHUVRQQHOWRHQVXUHFRPSOHWHQHVV
DQGDFFXUDF\RIGDWDLQ&'
,QDGGLWLRQWRWKHH&5)VWKHIROORZLQJIRUPZLOOEHFRPSOHWHG
x (OLJLELOLW\FKHFNOLVWSULRUWRHQUROOPHQW)D[HGWRWKH&HQWUDO5HJLVWUDWLRQ2IILFH

'DWD4XDOLW\$VVXUDQFH
7KHUHVHDUFKWHDPZLOOPRQLWRUHDFKSDWLHQW¶VGDWDVHWWKURXJKRXWWKHVWXG\6RXUFHGRFXPHQW
UHYLHZZLOOEHPDGHDJDLQVWHQWULHVRQWKHH&5)DQGDTXDOLW\DVVXUDQFHFKHFNZLOOEHSHUIRUPHG
WRHQVXUHWKDWWKHLQYHVWLJDWRULVFRPSO\LQJZLWKWKHSURWRFRODQGUHJXODWLRQV ,QDGGLWLRQDIWHU
H&5)VDUHFRPSOHWHGE\WKHUHVHDUFKWHDPGDWDPDQDJHUVUHYLHZRIWKHGDWDZLOOEHFRQGXFWHG
E\DUHVHDUFKQXUVHRUSK\VLFLDQ

5HVSRQVH&ULWHULD
7REHFRQVLGHUHGDVHYDOXDEOHIRUUHVSRQVHDSDWLHQWVKRXOGKDYHFRPSOHWHGZHHNVRIWKHUDS\
F\FOHVDQGWKLVLVDWOHDVWGD\VRIYDQGHWDQLEDQGGRVHVRIERUWH]RPLE
0(1SDWLHQWVZLWKFRQFXUUHQWPHGXOODU\WK\URLGFDQFHUDQGSKHRFKURPRF\WRPDZKRZHUH
HQUROOHGDWWKH3ULQFLSDO,QYHVWLJDWRU¶VGLVFUHWLRQSHU6HFWLRQ ZLOOQRWEHHYDOXDEOHIRU
WKHSULPDU\HQGSRLQW



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

5(&,67
%DVHOLQHGRFXPHQWDWLRQRI³7DUJHW´DQG³1RQ7DUJHW´OHVLRQV
x
$OOEDVHOLQHHYDOXDWLRQVVKRXOGEHSHUIRUPHGDVFORVHO\DVSRVVLEOHWRWKHEHJLQQLQJRI
WUHDWPHQWDQGQHYHUPRUHWKDQZHHNVEHIRUHWKHEHJLQQLQJRIWKHWUHDWPHQW
x
7KHVDPHPHWKRGRIDVVHVVPHQWDQGWKHVDPHWHFKQLTXHVKRXOGEHXVHGWRFKDUDFWHUL]HHDFK
LGHQWLILHGDQGUHSRUWHGOHVLRQDWEDVHOLQHDQGGXULQJIROORZXS
x
$OOPHDVXUDEOHOHVLRQVXSWRDPD[LPXPRIILYHOHVLRQVSHURUJDQDQGOHVLRQVLQWRWDO
UHSUHVHQWDWLYHRIDOOLQYROYHGRUJDQVVKRXOGEHLGHQWLILHGDVWDUJHWOHVLRQV DQGUHFRUGHGDQG
PHDVXUHGDWEDVHOLQH
x
7DUJHWOHVLRQVVKRXOGEHVHOHFWHGRQWKHEDVLVRIWKHLUVL]HOHVLRQVZLWKWKHORQJHVWGLDPHWHU
DQGWKHLUVXLWDELOLW\IRUDFFXUDWHUHSHDWHGPHDVXUHPHQWVHLWKHUE\LPDJLQJWHFKQLTXHVRU
FOLQLFDOO\/HVLRQVWKDWDUHFDOFLILHGRUKDYHEHHQSUHYLRXVO\LUUDGLDWHGZLOOEHH[FOXGHG
IURPWKHWDUJHWOHVLRQV
x
$VXPRIWKH ORQJHVWGLDPHWHU/'IRUDOOWDUJHWOHVLRQV ZLOOEHFDOFXODWHGDQGUHSRUWHGDV
WKHEDVHOLQHVXP/'7KHEDVHOLQHVXP/'ZLOOEHXVHGDVUHIHUHQFHE\ZKLFKWR
FKDUDFWHUL]HWKHREMHFWLYHWXPRU
x
$OORWKHUOHVLRQVRUVLWHVRIGLVHDVHVKRXOGEHLGHQWLILHGDV QRQWDUJHWOHVLRQV DQGVKRXOG
DOVREHUHFRUGHGDWEDVHOLQH0HDVXUHPHQWVRIWKHVHOHVLRQVDUHQRWUHTXLUHGEXWWKHSUHVHQFH
RUDEVHQFHRIHDFKVKRXOGEHQRWHGWKURXJKRXWIROORZXS1RQWDUJHWOHVLRQVPD\LQFOXGH
QRQPHDVXUDEOHOHVLRQVZKLFKLQFOXGHERQHOHVLRQVOHSWRPHQLQJHDOGLVHDVHDVFLWHV
SOHXUDOSHULFDUGLDOHIIXVLRQLQIODPPDWRU\EUHDVWGLVHDVH
(YDOXDWLRQRI7DUJHW/HVLRQV
&RPSOHWH5HVSRQVH&5
'LVDSSHDUDQFHRIDOOWDUJHWOHVLRQV
3DUWLDO5HVSRQVH35
$WOHDVWDGHFUHDVHLQWKHVXPRI WKHORQJHVWGLDPHWHU/'
RIWDUJHWOHVLRQVWDNLQJDVUHIHUHQFHWKHEDVHOLQHVXP/'
3URJUHVVLYH'LVHDVH3'
$WOHDVWDLQFUHDVHLQWKHVXPRIWKH/'RIWDUJHWOHVLRQV
WDNLQJDVUHIHUHQFHWKHVPDOOHVWVXP/'UHFRUGHGVLQFHWKH
WUHDWPHQWVWDUWHGRU WKHDSSHDUDQFH RIRQHRUPRUHQHZOHVLRQV
6WDEOH'LVHDVH6'
1HLWKHUVXIILFLHQWVKULQNDJHWRTXDOLI\IRU35QRUVXIILFLHQW
LQFUHDVHWRTXDOLI\IRU3'WDNLQJDVUHIHUHQFHWKHVPDOOHVWVXP
/'VLQFHWKHWUHDWPHQWVWDUWHG
(YDOXDWLRQRI1RQ7DUJHW/HVLRQV
&RPSOHWH5HVSRQVH&5
'LVDSSHDUDQFHRIDOOQRQWDUJHWOHVLRQVDQGQRUPDOL]DWLRQRI
WXPRUPDUNHUOHYHO
1RWH,IWXPRUPDUNHUVDUHLQLWLDOO\DERYHWKHXSSHUQRUPDO
OLPLWWKH\PXVWQRUPDOL]HIRUDSDWLHQWWREHFRQVLGHUHGLQ
FRPSOHWHFOLQLFDOUHVSRQVH
,QFRPSOHWH5HVSRQVH
6WDEOH'LVHDVH6'
3HUVLVWHQFHRIRQHRUPRUHQRQWDUJHWOHVLRQVRUPDLQWHQDQFH
RIWXPRUPDUNHUOHYHODERYHWKHQRUPDOOLPLWV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
3URJUHVVLYH'LVHDVH3'
$SSHDUDQFHRIRQHRUPRUHQHZOHVLRQVRUXQHTXLYRFDO
SURJUHVVLRQRIH[LVWLQJQRQWDUJHWOHVLRQV
$OWKRXJKDFOHDUSURJUHVVLRQRI³QRQWDUJHW´OHVLRQVRQO\LV
H[FHSWLRQDOWKHRSLQLRQRIWKHWUHDWLQJSK\VLFLDQVKRXOGSUHYDLO
LQVXFKFLUFXPVWDQFHVDQGWKHSURJUHVVLRQVWDWXVVKRXOGEH
FRQILUPHGDWDODWHUWLPHE\WKHUHYLHZSDQHORU3ULQFLSDO
,QYHVWLJDWRU
&RQILUPDWLRQRI5HVSRQVH
x
7KHPDLQJRDORIFRQILUPDWLRQRIREMHFWLYHUHVSRQVHLVWRDYRLGRYHUHVWLPDWLQJWKHUHVSRQVH
UDWHREVHUYHG,QFDVHVZKHUHFRQILUPDWLRQRIUHVSRQVHLVQRWIHDVLEOHLWVKRXOGEHPDGH
FOHDUZKHQUHSRUWLQJWKHRXWFRPHRIVXFKVWXGLHVWKDWWKHUHVSRQVHVDUHQRWFRQILUPHG
x
7REHDVVLJQHGDVWDWXVRI35RU&5FKDQJHVLQWXPRUPHDVXUHPHQWVPXVWEHFRQILUPHGE\
UHSHDWDVVHVVPHQWVWKDWVKRXOGEHSHUIRUPHGQROHVVWKDQZHHNVDIWHUWKHFULWHULDIRU
UHVSRQVHDUHILUVWPHW/RQJHULQWHUYDOVDVGHWHUPLQHGE\WKHVWXG\SURWRFROPD\DOVREH
DSSURSULDWH
x
,QWKHFDVHRI6'IROORZXSPHDVXUHPHQWVPXVWKDYHPHWWKH6'FULWHULDDWOHDVWRQFHDIWHU
VWXG\HQWU\DWDPLQLPXPZHHNVIURPVWXG\HQWU\
(YDOXDWLRQRI%HVW2YHUDOO5HVSRQVH
7KHEHVWRYHUDOOUHVSRQVHLVWKHEHVWUHVSRQVHUHFRUGHGIURPWKHVWDUWRIWKHWUHDWPHQWXQWLO
GLVHDVHSURJUHVVLRQUHFXUUHQFHWDNLQJDVUHIHUHQFHIRUSURJUHVVLYHGLVHDVHWKHVPDOOHVW
PHDVXUHPHQWVUHFRUGHGVLQFHWKHWUHDWPHQWVWDUWHG7KHSDWLHQW
VEHVWUHVSRQVHDVVLJQPHQWZLOO
GHSHQGRQWKHDFKLHYHPHQWRIERWKPHDVXUHPHQWDQGFRQILUPDWLRQFULWHULD
(YDOXDWLRQRI%HVW2YHUDOO5HVSRQVH
7DUJHW
/HVLRQV
1RQ7DUJHW
/HVLRQV
1HZ/HVLRQV
2YHUDOO
5HVSRQVH
%HVW5HVSRQVHIRUWKLV
&DWHJRU\$OVR5HTXLUHV
&5
&5
1R
&5
ZHHNVFRQILUPDWLRQ
&5
1RQ&51RQ3'
1R
35
ZHHNVFRQILUPDWLRQ
35
1RQ3'
1R
35
6'
1RQ3'
1R
6'
'RFXPHQWHGDWOHDVWRQFH
ZHHNVIURPEDVHOLQH
3'
$Q\
<HVRU1R
3'
1RSULRU6'35RU&5
$Q\
3'
<HVRU1R
3'
$Q\
$Q\
<HV
3'
,QH[FHSWLRQDOFLUFXPVWDQFHVXQHTXLYRFDOSURJUHVVLRQLQQRQWDUJHWOHVLRQVPD\EHDFFHSWHGDVGLVHDVH
SURJUHVVLRQ
1RWH
3DUWLFLSDQWV ZLWKDJOREDOGHWHULRUDWLRQRIKHDOWKVWDWXVUHTXLULQJGLVFRQWLQXDWLRQRIWUHDWPHQWZLWKRXW
REMHFWLYHHYLGHQFHRIGLVHDVHSURJUHVVLRQDWWKDWWLPHVKRXOGEHUHSRUWHGDV³V\PSWRPDWLFGHWHULRUDWLRQ´(YHU\
HIIRUWVKRXOGEHPDGHWRGRFXPHQWWKHREMHFWLYHSURJUHVVLRQHYHQDIWHUGLVFRQWLQXDWLRQRIWUHDWPHQW



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
'XUDWLRQRI5HVSRQVH
'XUDWLRQRIRYHUDOO
UHVSRQVH
7KHGXUDWLRQRIRYHUDOOUHVSRQVHLVPHDVXUHGIURPWKHWLPH
PHDVXUHPHQWFULWHULDDUHPHWIRU&5RU35ZKLFKHYHULVILUVW
UHFRUGHGXQWLOWKHILUVWGDWHWKDWUHFXUUHQWRUSURJUHVVLYHGLVHDVHLV
REMHFWLYHO\GRFXPHQWHGWDNLQJDVUHIHUHQFHIRUSURJUHVVLYHGLVHDVH
WKHVPDOOHVWPHDVXUHPHQWVUHFRUGHGVLQFHWKHWUHDWPHQWVWDUWHG
7KHGXUDWLRQRIRYHUDOO&5LVPHDVXUHGIURPWKHWLPHPHDVXUHPHQW
FULWHULDDUHILUVWPHWIRU&5XQWLOWKHILUVWGDWHWKDWUHFXUUHQWGLVHDVH
LVREMHFWLYHO\GRFXPHQWHG
'XUDWLRQRIVWDEOH
GLVHDVH
6WDEOHGLVHDVHLVPHDVXUHGIURPWKHVWDUWRIWKHWUHDWPHQWXQWLOWKH
FULWHULDIRUSURJUHVVLRQDUHPHWWDNLQJDVUHIHUHQFHWKHVPDOOHVW
PHDVXUHPHQWVUHFRUGHGVLQFHWKHWUHDWPHQWVWDUWHG
7REHFRQVLGHUHGFOLQLFDOO\UHOHYDQWWKHGXUDWLRQRIVWDEOHGLVHDVH
PXVWEHZHHNV
3URJUHVVLRQ)UHH6XUYLYDO3)6
3)6LVGHILQHGDVWKHGXUDWLRQRIWLPHIURPVWDUWRIWUHDWPHQWWRWLPHRISURJUHVVLRQ

%LRPDUNHU5HVSRQVH&ULWHULD
6HH6HFWLRQIRUFDOFLWRQLQ&71DQG&($VDPSOLQJWLPHSRLQWV2QO\SDWLHQWVZLWKDYHUDJH
SUHWUHDWPHQW&71DQG&($OHYHOVWKDWDUH!WLPHVWKH8/1DUHHYDOXDEOHIRUELRPDUNHU
UHVSRQVH5HVSRQVHFULWHULDIRU&($DQG&71DUH
x
&RPSOHWH5HVSRQVH&51RUPDOL]DWLRQ8/1RI&($RU&71OHYHOIROORZLQJ
WUHDWPHQWFRQILUPHGZLWKDUHSHDW&($&71OHYHODWOHDVWZHHNVDSDUW
x
3DUWLDO5HVSRQVH35$GHFUHDVHLQWKH&($RU&71OHYHOUHODWLYHWRWKHEDVHOLQH
OHYHOFRQILUPHGZLWKDUHSHDW&($&71OHYHODWOHDVWZHHNVDSDUW
x
3URJUHVVLYH'LVHDVH3'$LQFUHDVHLQWKH&($RU&71UHODWLYHWRWKHEDVHOLQH
OHYHOFRQILUPHGZLWKDUHSHDW&($&71OHYHODWOHDVWZHHNVDSDUW
x
6WDEOHGLVHDVH6'LQFUHDVHRUGHFUHDVHLQ&71RU&($OHYHOUHODWLYHWRWKH
EDVHOLQHOHYHO
 7REHDVVLJQHGDVWDWXVRIELRPDUNHU35RU&5FKDQJHVLQVHUXPWXPRUELRPDUNHUOHYHOPXVW
EHFRQILUPHGE\UHSHDWPHDVXUHPHQWZKLFKVKRXOGEHSHUIRUPHGZHHNVDIWHUWKHFULWHULD
IRU35RU&5DUHILUVWPHW
 )RUVWDEOHGLVHDVHIROORZXS&($&71OHYHOVPXVWKDYHPHWWKHVWDEOHGLVHDVHFULWHULDDWOHDVW
RQFHDIWHUVWXG\HQWU\DWDPLQLPXPLQWHUYDOGHILQHGDVZHHNV
 (DFKSDWLHQW¶VEHVW&($UHVSRQVHDQGEHVW&71UHVSRQVH ZLOOEHFDOFXODWHGIURPWKH
DYHUDJHRIEDVHOLQHPHDVXUHPHQWDQGORZHVWPHDVXUHPHQWGXULQJWUHDWPHQWFRQILUPHGE\
DVHFRQGPHDVXUHPHQWZHHNVODWHU5HVSRQGHUVDUHWKRVHVXEMHFWVZLWKDEHVWELRPDUNHU
UHVSRQVHRI&5RU35

&OLQLFDO5HVSRQVH&ULWHULD6\PSWRPDWLF'LDUUKHD
3DWLHQWVZKRSUHVHQWZLWKGLDUUKHD DWWULEXWDEOHWRHOHYDWHG&71ZLOOEHIROORZHGIRU
V\PSWRPDWLFUHVSRQVHDIWHUWUHDWPHQWZLWKYDQGHWDQLEDQGERUWH]RPLE%DVHOLQHVWRROIUHTXHQF\
ZLOOEHWKHDYHUDJHRIGDLO\VWRROFRXQWVGXULQJDGD\SHULRGLPPHGLDWHO\SULRUWRVWDUWLQJ
YDQGHWDQLEDQGERUWH]RPLE%DVHOLQHVWRROFRQVLVWHQF\IRUPHGORRVHRUSDUWLDOO\IRUPHG
ZDWHU\ZLOOEHWKHFRQVLVWHQF\PRVWIUHTXHQWO\REVHUYHGGXULQJDGD\SHULRGLPPHGLDWHO\



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
SULRUWRVWDUWLQJYDQGHWDQLE2QO\SDWLHQWVZLWKDVWRROIUHTXHQF\RIGD\DQGDVWRRO
FRQVLVWHQF\RIZDWHU\ZLOOEHHYDOXDEOHIRUFOLQLFDOUHVSRQVH6\PSWRPDWLFUHVSRQVHZLOOEH
GHWHUPLQHGIURPDFKDQJHLQVWRROFRQVLVWHQF\ZDWHU\ORRVHRUSDUWLDOO\IRUPHGIRUPHGDQG
IUHTXHQF\XVLQJSDWLHQWKLVWRULHVDQGSDWLHQWGLDULHV
x
&RPSOHWH5HVSRQVH&5 DQDYHUDJHRI IRUPHGVWRROVSHUGD\IRUDSHULRGRIDWOHDVW
ZHHNV
x
3DUWLDO5HVSRQVH35 $GHFUHDVHLQWKHDYHUDJHVWRROIUHTXHQF\UHODWLYHWREDVHOLQH
DQGDFKDQJHLQVWRROFRQVLVWHQF\IURPZDWHU\WRORRVHSDUWLDOO\IRUPHGIRUDSHULRGRIDW
OHDVWZHHNV
x
1R5HVSRQVH15 &ULWHULDIRU&5RU35QRWPHW
 ,QIRUPDWLRQRQVWRROIUHTXHQF\ZLOOEHVHOIUHSRUWHGE\WKHVXEMHFWXVLQJWKHSDWLHQWGLDU\
$SSHQGL['6XEMHFWVZLOOEHDVNHGWRUHSRUWWKHLUGDLO\VWRROIUHTXHQF\DQGFRQVLVWHQF\
 5HVSRQGHUVDUHWKRVHVXEMHFWVZKRDFKLHYHDFOLQLFDOUHVSRQVHRI&5RU35

6WDWLVWLFVDQG)HDVLELOLW\
)ROORZLQJFRPSOHWLRQRIWKHSKDVH,GRVHHVFDODWLRQSRUWLRQRIWKHWULDOWKHSULPDU\REMHFWLYHVRI
WKLVVWXG\DUHWRGHWHUPLQHLIYDQGHWDQLESOXVERUWH]RPLEZLOOEHDVVRFLDWHGZLWKDPRGHVWO\
KLJKUHVSRQVHUDWHLQSDWLHQWVZLWK07&ZKLFKLVJUHDWHUWKDQWKDWRIYDQGHWDQLEDORQHDQG
VHFRQGDULO\LIYDQGHWDQLESOXVERUWH]RPLEZLOOEHDVVRFLDWHGZLWKDPRGHVWO\KLJKHUSURJUHVVLRQ
IUHHVXUYLYDOLQSDWLHQWVZLWK07&ZKLFKLVJUHDWHUWKDQWKDWRIYDQGHWDQLEDORQH
7KHWULDOZLOOXVHDFRQYHQWLRQDO SDWLHQWGRVHHVFDODWLRQVFKHPHIRUDPD[LPXPRIGRVH
HVFDODWLRQOHYHOV7KXVGHSHQGLQJRQWKHQXPEHURISDWLHQWVLGHQWLILHGZLWK'/7DWDJLYHQGRVH
OHYHOXSWRSDWLHQWVPD\EHUHTXLUHGWREHHQUROOHGWRGHWHUPLQHWKH07'
'DWDIURPDSKDVH,,WULDORISDWLHQWVZLWK07&XVLQJYDQGHWDQLEDORQHIRXQGRI
SDWLHQWVKDYLQJDSDUWLDOUHVSRQVHWKXVLWZRXOGEHGHVLUDEOHLIWKLVFRXOGEHLPSURYHGXSRQE\
WKHFRPELQDWLRQ2QFHWKH07'RIWKHFRPELQDWLRQKDVEHHQGHWHUPLQHGWKHQH[WSRUWLRQRIWKH
VWXG\XVLQJRQO\07&SDWLHQWVZLOOEHFRQGXFWHGDVDUDQGRPL]HGSKDVH,,WULDO7KLV WULDOZLOOEH
FRQGXFWHGXVLQJDSKDVHGHVLJQZKLFKLVLQWHQGHGWRGHWHFWDGLIIHUHQFHZLWKDRQHWDLOHG
WHVW7KHJRDORIWKHVWXG\LVWRDFFUXHDQGSDWLHQWVWRWDOWRWKHYDQGHWDQLEDORQH
DUPDQGYDQGHWDQLEERUWH]RPLEDUPUHVSHFWLYHO\7KLVQXPEHURISDWLHQWVZRXOGSURYLGH
SRZHUWRGHWHFWDGLIIHUHQFHEHWZHHQDUHVSRQVHUDWHDQGUHVSRQVHUDWHXVLQJDWZR
WDLOHG)LVKHUH[DFWWHVWDWWKHRQHVLGHGOHYHO
7KHWRWDOQXPEHURISDWLHQWVWRSRVVLEO\HQUROOLVWKXV7KLV LVFDOFXODWHGIURPWKHIROORZLQJ
x
'RVHHVFDODWLRQFRKRUWVRI SDWLHQWV[OHYHOV PD[LPXPRISDWLHQWV
x
07&SDWLHQWVDWWKH07'LQWKHUDQGRPL]HGSKDVH,,SRUWLRQRIWKHWULDO
&DOFLWRQLQOHYHOVZLOODOVREHREWDLQHGRQDOOSDWLHQWVDQGH[SORUHGFRPSDUHGWREDVHOLQHLQRUGHU
WRGHWHUPLQHLIWKHUHLVDFKDQJHWKDWPD\EHDVVRFLDWHGZLWKWKHXVHRIWKLVDJHQW
)RUDOOSDWLHQWVZLWK07&SURJUHVVLRQIUHHVXUYLYDOZLOOEHHYDOXDWHGXVLQJ.DSODQ0HLHU
FXUYHVDVDVHFRQGDU\HQGSRLQW7KLVFXUYHZLOOEHFRPSDUHGLQIRUPDOO\WRUHVXOWVIURP
YDQGHWDQLEDORQH
$QXPEHURIELRPDUNHUVDQGRWKHUSDUDPHWHUVZLOODOVREHREWDLQHGDQGFRPSDUHGWRFOLQLFDO
UHVSRQVH/HYHOVRIWKHIROORZLQJSDUDPHWHUVDWYDULRXVWLPHSRLQWVDWZKLFKWKH\DUHREWDLQHG
DVZHOODV FKDQJHVIURPEDVHOLQHZLOOEHFRPSDUHGEHWZHHQSDWLHQWVZKRVHWXPRUVDUHVFRUHGDV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
UHVSRQGLQJWRWKHUDS\DQGWKRVHZKRVHWXPRUVDUHQRWVFRUHGDVUHVSRQGLQJWRWUHDWPHQW5(7
(*)59(*)5VRPDWRVWDWLQUHFHSWRUPLFURWXEXOHVWDELOL]DWLRQ5(7LQKLELWLRQ 7KHVHDQDO\VHV
ZLOOEHGRQHXVLQJWXPRUVDPSOHVIURPSDWLHQWVZLWKDGLDJQRVLVRI07&WUHDWHGDWWKH07'
)XUWKHUPRUHWKHVHDQDO\VHVZLOOEHGRQHLQDQH[SORUDWRU\PDQQHUXVLQJD:LOFR[RQUDQNVXP
WHVWZLWKRXWIRUPDODGMXVWPHQWIRUPXOWLSOHFRPSDULVRQV DOWKRXJKWKHUHVXOWVZLOOEHSUHVHQWHG
LQWKHFRQWH[WRIWKHH[SORUDWRU\QDWXUHRIWKHDQDO\VLV

0XOWLLQVWLWXWLRQDOJXLGHOLQHV
$WWKHRXWVHWWKLVLVDVLQJOHLQVWLWXWLRQVWXG\DQGWKHPXOWLLQVWLWXWLRQDOJXLGHOLQHVGRQRWDSSO\

'DWDDQG6DIHW\0RQLWRULQJ3ODQ
$GYHUVHHYHQWVREVHUYHGLQSDWLHQWVHQUROOHGRQWKHWULDOZLOOEHPRQLWRUHGLQUHDOWLPHE\WKH
3ULQFLSDO$GMXQFW3ULQFLSDODQG$VVRFLDWH,QYHVWLJDWRUVDQGDWWULEXWLRQRIWKHVHHYHQWVWR
YDQGHWDQLEDQGRUERUWH]RPLEZLOOEHGHWHUPLQHGDWWKHHQGRIHDFKWUHDWPHQWF\FOHLQHDFK
VXEMHFW7KHFOLQLFDOUHVHDUFKWHDP3,DGMXQFW3,$,VUHVHDUFKQXUVHVGDWDPDQDJHUVZLOO
PHHWRQDUHJXODUEDVLVZKHQSDWLHQWVDUHEHLQJDFWLYHO\WUHDWHGRQWKHWULDOWRGLVFXVVHDFK
SDWLHQWLQGHWDLODQGHQVXUHWKDWDOOHYHQWVDUHJUDGHGDSSURSULDWHO\DQGWKDWWKHDWWULEXWLRQWR
VWXG\GUXJLVFRUUHFW'HFLVLRQVDERXWGRVHOHYHOHVFDODWLRQDQGHQUROOPHQWZLOOEHPDGHEDVHG
RQWKHWR[LFLW\GDWDIURPSULRUSDWLHQWV,QWHUQDODXGLWVRIWKHWULDOZLOOEHSHUIRUPHGE\DQ
LQGHSHQGHQWWHDPRIGDWDPDQDJHUVWRHQVXUHFRPSOLDQFHZLWKWKHSURWRFRODQGWRHQVXUHWKDWWKH
GDWDUHFRUGHGLQWKH&5)VDFFXUDWHO\UHIOHFWVWKHGDWDLQWKHVRXUFHGRFXPHQWV7KLVWULDOZLOOQRW
UHTXLUHPRQLWRULQJE\D'60%

+80$168%-(&763527(&7,21

5DWLRQDOHIRU6XEMHFW6HOHFWLRQ
3DWLHQWVRIERWKJHQGHUVIURPDOOUDFLDODQGHWKQLFJURXSVDUHHOLJLEOHIRUWKLVWULDOLIWKH\PHHW
WKHHOLJLELOLW\FULWHULDRXWOLQHGLQ6HFWLRQ7KHUHLVQRFOLQLFDOLQIRUPDWLRQ WKDWVXJJHVWV
GLIIHUHQFHVLQYDQGHWDQLERUERUWH]RPLEPHWDEROLVPGLVSRVLWLRQRU07&UHVSRQVHDPRQJUDFLDO
RUHWKQLFJURXSVRUEHWZHHQWKHJHQGHUVLQGLFDWLQJWKDWUHVXOWVRIWKHWULDOZLOOEHDSSOLFDEOHWR
DOOJURXSV7KLV3KDVH,,,WULDORIYDQGHWDQLEDQGERUWH]RPLEZLOOEHFRQGXFWHGLQDGXOWVZLWK
VROLGWXPRUVLQFOXGLQJWKRVHZLWK07&(IIRUWVZLOOEHPDGHWRH[WHQGWKHDFFUXDOWRD
UHSUHVHQWDWLYHJURXSIURPWKLVSRSXODWLRQEXWZLWKDUDUHGLVHDVHDQGZLWKDOLPLWHGDFFUXDORI
SDWLHQWVDEDODQFHPXVWEHVWUXFNEHWZHHQFRPSOHWLQJWKHWULDOLQDWLPHO\IDVKLRQRQWKHRQH
KDQGDQGWKHQHHGWRH[SORUHJHQGHUUDFLDODQGHWKQLFDVSHFWVRIFOLQLFDOUHVHDUFKRQWKHRWKHU
,IGLIIHUHQFHVLQRXWFRPHWKDWFRUUHODWHWRJHQGHUUDFLDORUHWKQLFLGHQWLW\DUHQRWHGDFFUXDOPD\
EHH[SDQGHGRUDGGLWLRQDOVWXGLHVPD\EHSHUIRUPHGWRLQYHVWLJDWHWKRVHGLIIHUHQFHVPRUHIXOO\
:HDQWLFLSDWHWKDWDFFUXDOWRWKLVWULDOFDQEHFRPSOHWHGLQPRQWKVWR\HDUV

3DUWLFLSDWLRQRI&KLOGUHQ
7KHUHLVFXUUHQWO\DQLQGHSHQGHQWVWXG\LQWKH3HGLDWULF2QFRORJ\%UDQFKH[DPLQLQJYDQGHWDQLE
LQFKLOGUHQZLWKKHUHGLWDU\07&

(YDOXDWLRQRI%HQHILWVDQG5LVNV'LVFRPIRUWV
7KHSULPDU\ULVNWRSDWLHQWVSDUWLFLSDWLQJLQWKLVUHVHDUFKVWXG\LVIURPWR[LFLW\RIYDQGHWDQLEDQG
ERUWH]RPLE



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
,QDGXOWVYDQGHWDQLEKDVEHHQUHODWLYHO\ZHOOWROHUDWHG7KHPRVWFRPPRQDGYHUVHHYHQWVKDYH
EHHQUDVKGLDUUKHDDQGDV\PSWRPDWLF47FSURORQJDWLRQZKLFKDUHUHYHUVLEOHDQGJHQHUDOO\FDQ
EHDOOHYLDWHGE\GRVHUHGXFWLRQ7KHVWDUWLQJGRVHLVEDVHGRQWKHUHVXOWVRISUHYLRXVDGXOWSKDVH,
WULDOVRIYDQGHWDQLEDQGSODQQHGGRVHHVFDODWLRQZLOOQRWH[FHHGWKHGRVLQJUDQJHZKLFK
GHPRQVWUDWHGFOLQLFDOEHQHILWDQGZKLFKZDVWROHUDWHGLQDGXOWV7KHEHQHILWVRIWKLVPROHFXODUO\
WDUJHWHGDJHQWLQKHUHGLWDU\07&KDYHEHHQ GHPRQVWUDWHGLQDGXOWV7KHREMHFWLYHUHVSRQVHUDWH
35VE\5(&,67LVDSSUR[LPDWHO\DQGWKHPDMRULW\RISDWLHQWVKDYHVXEVWDQWLDOUHGXFWLRQV
LQVHUXPFDOFLWRQLQOHYHOVWKDWDUHIHOWWRFRQWULEXWHWR07&UHODWHGGLDUUKHD
%RUWH]RPLELVDSSURYHGE\WKH )'$IRUWKHWUHDWPHQWRISDWLHQWVZLWKUHODSVHG007KHPRVW
FRPPRQDGYHUVHHYHQWVKDYHEHHQVHQVRU\QHXURSDWK\K\SRWHQVLRQJDVWURLQWHVWLQDO
GLVWXUEDQFHVLQFOXGLQJQDXVHDGLDUUKHDFRQVWLSDWLRQDQGYRPLWLQJDVZHOODVWKURPERF\WRSHQLD
%RWKWKHLQGLYLGXDOGRVHVDVZHOODVWKHWRWDOGRVHSHUF\FOHDUHVXEVWDQWLDOO\OHVVWKDQWKRVH
DSSURYHGE\WKH)'$DQGQRZZLGHO\XVHGLQSDWLHQWVZLWK00
7KHSURWRFRODGPLQLVWHUVYDQGHWDQLELQFRPELQDWLRQZLWKERUWH]RPLEDQGWKHSRVVLELOLW\WKDW
XQH[SHFWHGWR[LFLWLHV PD\RFFXUFDQQRWEHH[FOXGHGDOWKRXJKDSULRULWKHUHLVQRUHDVRQWR
VXVSHFWWKLVQRWDUHWKHWR[LFLWLHVRIWKHVHDJHQWVGLVFHUQLEO\RYHUODSSLQJZLWKWKHH[FHSWLRQRI
QDXVHDZKLFKLVQRWH[SHFWHGWREHDPDMRUWR[LFLW\7R[LFLW\GDWDIURPWKHILUVWGRVHOHYHOZLOO
EHFROOHFWHGDQGUHYLHZHGLQUHDOWLPHWRHQVXUHWKDWWKHUHZHUHQRVHYHUHGRVHOLPLWLQJ
WR[LFLWLHVSULRUWRHVFDODWLQJWRWKHVHFRQGGRVHOHYHOLQWUDSDWLHQWGRVHHVFDODWLRQZLOODOVREH
DOORZHGSURYLGHGWKHSDWLHQWWROHUDWHVDQ\JLYHQGRVHOHYHOZLWKRXWJUDGHWR[LFLWLHV
7KHSURWRFROLQFRUSRUDWHVSHUFXWDQHRXVFRUHQHHGOHELRSVLHVRIVXSHUILFLDOWXPRUVZLWKPLQLPDO
ULVNWRVXUURXQGLQJYLWDOVWUXFWXUHVLQRUGHUWRREWDLQWXPRUVSHFLPHQVIRUUHVHDUFKSXUSRVHVLQ
SDWLHQWVZKRPHHWWKHHOLJLELOLW\FULWHULDLQ6HFWLRQ7KHVHUHVHDUFKVSHFLPHQVZLOOEHXVHGWR
DVVHVVWKHPXWDWLRQDOVWDWXVRIWKH5(7JHQHPXWDWLRQVLQWKHWXPRUFRPSDUHGWRJHUPOLQH
PXWDWLRQVDWWKHRQVHWRIWUHDWPHQW7KHVH VSHFLPHQVZLOODOVREHXVHGWRDVVHVV
SKDUPDFRG\QDPLFHIIHFWVRIERUWH]RPLEDQGPD\DVVHVVWKHHIIHFWRIYDQGHWDQLELQYLYRRQ
JHQHH[SUHVVLRQLQWXPRUVVHH6HFWLRQ DQG$SSHQGL[$/DERUDWRU\0HWKRGRORJ\
7KHUHZRXOGEHQRLPPHGLDWHGLUHFWEHQHILWWRWKHVXEMHFWZKRXQGHUJRHVDELRSV\RQWKLVWULDO
7KHPRVWOLNHO\VLWHIRUELRSVLHVZRXOGEHVXSHUILFLDOO\PSKQRGHVRURWKHUVLWHVLQWKHQHFN

5LVNV%HQHILWV$QDO\VLV
1RFKLOGUHQRUDGROHVFHQWVZLOOEHHQWHUHGRQWKLVWULDO$SULPDU\ULVNWRSDWLHQWVSDUWLFLSDWLQJLQ
WKLVUHVHDUFKVWXG\LVIURPWR[LFLW\RIYDQGHWDQLEDQLQYHVWLJDWLRQDODJHQWDQGDOVRIURP
ERUWH]RPLEDQ)'$DSSURYHGDJHQW7KHVWDUWLQJGRVHVRIERWKDJHQWVDUHEHORZWKHOHYHOWKDW
H[SHULHQFHKDVVKRZQLQZHOOWROHUDWHGLQDGXOWV&RKRUWVZLOOEHHVFDODWHGRQO\DIWHULWKDVEHHQ
GHWHUPLQHGYLDWKHFXUUHQWFRKRUWWKDWWKHFXUUHQWOHYHOLVWROHUDEOH
2QHRIWKHSULPDU\REMHFWLYHVRIWKLVWULDOLVWRDVVHVVWKHDFWLYLW\RIGDLO\RUDOYDQGHWDQLEDQGD
GD\	DGPLQLVWUDWLRQVFKHGXOHIRUERUWH]RPLELQDGXOWVZLWKVROLGWXPRUVZLWKDQ
HPSKDVLVRQSDWLHQWVZLWK KHUHGLWDU\PHGXOODU\WK\URLGFDUFLQRPD07&7KXVDOOSDWLHQWV
HQWHUHGZLOOEHWUHDWHGZLWKWKHUDSHXWLFLQWHQWDQGUHVSRQVHWRWKHWKHUDS\ZLOOEHFORVHO\
PRQLWRUHG7KHSRWHQWLDOEHQHILWVIURPWKLVWKHUDS\DUHGLVHDVHVWDELOL]DWLRQRUVKULQNDJHDQGD
UHGXFWLRQLQV\PSWRPVFDXVHGE\WKH07&VXFKDVGLDUUKHDDQGSRVVLEO\WXPRUVKULQNDJH
LQSDWLHQWZLWKRWKHUWXPRUV7KHUHIRUHDOWKRXJKWKHSKDVH,,,FRPSRQHQWRIWKLVSURWRFRO
LQYROYHVDJUHDWHUWKDQPLQLPDOULVNLWSUHVHQWVWKHSURVSHFWIRUGLUHFWEHQHILWWRLQGLYLGXDO
SDWLHQWV&DWHJRU\



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7KHELRSVLHVEHLQJSHUIRUPHGWRREWDLQWXPRUVDPSOHVIRUUHVHDUFKSXUSRVHVZLOOQRWSURYLGH
LPPHGLDWHGLUHFWEHQHILWWRWKHSDUWLFLSDQWVEXWZLOOSRWHQWLDOO\SURYLGHYDOXHGDWDUHJDUGLQJWKH
PHFKDQLVPVRIDFWLRQRIERUWH]RPLEDQGLQWHUDFWLRQEHWZHHQERUWH]RPLEDQGYDQGHWDQLE

,QIRUPHG&RQVHQW$VVHQW3URFHVVDQG'RFXPHQWDWLRQ
7KHWUHDWPHQWFRQVHQWZLOOH[SODLQWKHLQYHVWLJDWLRQDOQDWXUHDQGUHVHDUFKREMHFWLYHVRIWKLVWULDO
WKHSURFHGXUHVDQGWUHDWPHQWLQYROYHGDQGWKHDWWHQGDQWULVNVGLVFRPIRUWVDQGEHQHILWVDQG
SRWHQWLDODOWHUQDWLYHWKHUDSLHV)RUWKRVHSDWLHQWVZLWKDVXSHUILFLDOWXPRUWKDWFDQEHVDIHO\
ELRSVLHGWKHLQYHVWLJDWRUZLOODOVRH[SODLQWKHSXUSRVHULVNVDQGODFNRIGLUHFWEHQHILWIURP
SDUWLFLSDWLQJLQWKHVHULHVRIELRSVLHVDQGWKHRSWLRQDOQDWXUHRIWKHSURFHGXUHZLOOEHH[SODLQHG
LHUHIXVLQJSDUWLFLSDWLRQZLOOQRWLPSDFWRQWKHLUHOLJLELOLW\WRSDUWLFLSDWHLQWKHWUHDWPHQW
FRPSRQHQWRIWKHWULDO7KHVHLVVXHVZLOOEHFDUHIXOO\H[SODLQHGWRWKHSDWLHQWDQGDVLJQDWXUH
ZLOOEHREWDLQHGRQWKHLQIRUPHGFRQVHQWGRFXPHQWSULRUWRHQWU\RQWRWKHVWXG\6HQLRU
LQYHVWLJDWRUVIURPWKH*0% ZLOOOHDGWKLVGLVFXVVLRQ3DWLHQWVZLOOEHDOORZHGDPSOHWLPHWR
UHYLHZWKHFRQVHQWIRUPDQGKDYHDOOWKHLUTXHVWLRQVDQVZHUHG$FRS\RIWKHVLJQHGFRQVHQW
IRUPZLOOEHJLYHWRHDFKSDWLHQW
3DWLHQWVZKRDJUHHWRXQGHUJRELRSVLHVZLOOKDYHDVHSDUDWHELRSV\FRQVHQWREWDLQHGE\WKH
SK\VLFLDQSHUIRUPLQJWKHELRSV\

6$)(7<5(3257,1*5(48,5(0(176'$7$$1'6$)(7<021,725,1*
3/$1

'HILQLWLRQV

$GYHUVH(YHQW
$QDGYHUVHHYHQWLVGHILQHGDVDQ\UHDFWLRQVLGHHIIHFWRUXQWRZDUGHYHQWWKDWRFFXUVGXULQJWKH
FRXUVHRIWKHFOLQLFDOWULDODVVRFLDWHGZLWKWKHXVHRIDGUXJLQKXPDQVZKHWKHURUQRWWKHHYHQW
LVFRQVLGHUHGUHODWHGWRWKHWUHDWPHQWRUFOLQLFDOO\VLJQLILFDQW)RUWKLVVWXG\$(VZLOOLQFOXGH
HYHQWVUHSRUWHGE\WKHSDWLHQWDVZHOODVFOLQLFDOO\VLJQLILFDQWDEQRUPDOILQGLQJVRQSK\VLFDO
H[DPLQDWLRQRUODERUDWRU\HYDOXDWLRQ$QHZLOOQHVVV\PSWRPVLJQRUFOLQLFDOO\VLJQLILFDQW
ODERUDWRU\DEQRUPDOLW\RUZRUVHQLQJRIDSUHH[LVWLQJFRQGLWLRQRUDEQRUPDOLW\LVFRQVLGHUHGDQ
$($OO$(VPXVWEHUHFRUGHGRQWKH$(FDVHUHSRUWIRUPXQOHVVRWKHUZLVHQRWHGDERYHLQ
6HFWLRQ
$OO$(VLQFOXGLQJFOLQLFDOO\VLJQLILFDQWDEQRUPDOILQGLQJVRQODERUDWRU\HYDOXDWLRQVUHJDUGOHVV
RIVHYHULW\ZLOOEHIROORZHGXQWLOUHWXUQWREDVHOLQHRUVWDELOL]DWLRQRIHYHQW6HULRXVDGYHUVH
HYHQWVWKDWRFFXUPRUHWKDQGD\VDIWHUWKHODVWDGPLQLVWUDWLRQRILQYHVWLJDWLRQDO
DJHQWLQWHUYHQWLRQDQGKDYHDQDWWULEXWLRQRIDWOHDVWSRVVLEO\UHODWHGWRWKHDJHQWLQWHUYHQWLRQ
VKRXOGEHUHFRUGHGDQGUHSRUWHGDVSHUVHFWLRQV  DQG
$QDEQRUPDOODERUDWRU\YDOXHZLOOEHFRQVLGHUHGDQ$(LIWKHODERUDWRU\ DEQRUPDOLW\LV
FKDUDFWHUL]HGE\DQ\RIWKHIROORZLQJ
x
5HVXOWVLQGLVFRQWLQXDWLRQIURPWKHVWXG\
x
,VDVVRFLDWHGZLWKFOLQLFDOVLJQVRUV\PSWRPV
x
5HTXLUHVWUHDWPHQWRUDQ\RWKHUWKHUDSHXWLFLQWHUYHQWLRQ
x
,VDVVRFLDWHGZLWKGHDWKRUDQRWKHUVHULRXVDGYHUVHHYHQWLQFOXGLQJKRVSLWDOL]DWLRQ
x
,VMXGJHGE\WKH,QYHVWLJDWRUWREHRIVLJQLILFDQWFOLQLFDOLPSDFW



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x
,IDQ\DEQRUPDOODERUDWRU\UHVXOWLVFRQVLGHUHGFOLQLFDOO\VLJQLILFDQWWKHLQYHVWLJDWRUZLOO
SURYLGHGHWDLOVDERXWWKHDFWLRQWDNHQZLWKUHVSHFWWRWKHWHVW GUXJDQGDERXWWKHSDWLHQW¶V
RXWFRPH

6XVSHFWHGDGYHUVHUHDFWLRQ
6XVSHFWHGDGYHUVHUHDFWLRQPHDQVDQ\DGYHUVHHYHQWIRUZKLFKWKHUHLVDUHDVRQDEOHSRVVLELOLW\
WKDWWKHGUXJFDXVHGWKHDGYHUVHHYHQW)RUWKHSXUSRVHVRI,1'VDIHW\UHSRUWLQJµUHDVRQDEOH
SRVVLELOLW\¶PHDQVWKHUHLVHYLGHQFHWRVXJJHVWDFDXVDOUHODWLRQVKLSEHWZHHQWKHGUXJDQGWKH
DGYHUVHHYHQW$VXVSHFWHGDGYHUVHUHDFWLRQLPSOLHVDOHVVHUGHJUHHRIFHUWDLQW\DERXWFDXVDOLW\
WKDQDGYHUVHUHDFWLRQZKLFKPHDQVDQ\DGYHUVHHYHQWFDXVHGE\DGUXJ

8QH[SHFWHGDGYHUVHUHDFWLRQ
$QDGYHUVHHYHQWRUVXVSHFWHGDGYHUVHUHDFWLRQLVFRQVLGHUHG³XQH[SHFWHG´LILWLVQRWOLVWHGLQ
WKHLQYHVWLJDWRUEURFKXUHRULVQRWOLVWHGDWWKHVSHFLILFLW\RUVHYHULW\WKDWKDVEHHQREVHUYHGRU
LIDQLQYHVWLJDWRUEURFKXUHLVQRWUHTXLUHGRUDYDLODEOHLVQRWFRQVLVWHQWZLWKWKHULVNLQIRUPDWLRQ
GHVFULEHGLQWKHJHQHUDOLQYHVWLJDWLRQDOSODQRUHOVHZKHUHLQWKHFXUUHQWDSSOLFDWLRQ
8QH[SHFWHG´DOVRUHIHUVWRDGYHUVHHYHQWVRUVXVSHFWHGDGYHUVHUHDFWLRQVWKDWDUHPHQWLRQHGLQ
WKHLQYHVWLJDWRUEURFKXUHDVRFFXUULQJZLWKDFODVVRIGUXJVRUDVDQWLFLSDWHGIURPWKH
SKDUPDFRORJLFDOSURSHUWLHVRIWKHGUXJEXWDUHQRWVSHFLILFDOO\PHQWLRQHGDVRFFXUULQJZLWKWKH
SDUWLFXODUGUXJXQGHULQYHVWLJDWLRQ

6HULRXV
$Q8QDQWLFLSDWHG3UREOHPRU3URWRFRO'HYLDWLRQLVVHULRXVLILWPHHWVWKHGHILQLWLRQRID6HULRXV
$GYHUVH(YHQWRULILWFRPSURPLVHVWKHVDIHW\ZHOIDUHRUULJKWVRIVXEMHFWVRURWKHUV

6HULRXV$GYHUVH(YHQW
$QDGYHUVHHYHQWRUVXVSHFWHGDGYHUVHUHDFWLRQLVFRQVLGHUHGVHULRXVLILQWKHYLHZRIWKH
LQYHVWLJDWRURUWKHVSRQVRULWUHVXOWVLQDQ\RIWKHIROORZLQJ
x
'HDWK
x
$OLIHWKUHDWHQLQJDGYHUVHGUXJH[SHULHQFH
x
,QSDWLHQWKRVSLWDOL]DWLRQRUSURORQJDWLRQRIH[LVWLQJKRVSLWDOL]DWLRQ
x
3HUVLVWHQWRUVLJQLILFDQWLQFDSDFLW\RUVXEVWDQWLDOGLVUXSWLRQRIWKHDELOLW\WRFRQGXFW
QRUPDOOLIHIXQFWLRQV
x
$FRQJHQLWDODQRPDO\ELUWKGHIHFW
x
,PSRUWDQWPHGLFDOHYHQWVWKDWPD\QRWUHVXOWLQGHDWKEHOLIHWKUHDWHQLQJRUUHTXLUH
KRVSLWDOL]DWLRQPD\EHFRQVLGHUHGDVHULRXVDGYHUVHGUXJH[SHULHQFH ZKHQEDVHGXSRQ
DSSURSULDWHPHGLFDOMXGJPHQWWKH\PD\MHRSDUGL]HWKHSDWLHQWRUVXEMHFWDQGPD\UHTXLUH
PHGLFDORUVXUJLFDOLQWHUYHQWLRQWRSUHYHQWRQHRIWKHRXWFRPHVOLVWHGLQWKLVGHILQLWLRQ

'LVDELOLW\
$VXEVWDQWLDOGLVUXSWLRQRIDSHUVRQ¶VDELOLW\WRFRQGXFWQRUPDOOLIHIXQFWLRQV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

/LIHWKUHDWHQLQJDGYHUVHGUXJH[SHULHQFH
$Q\DGYHUVHHYHQWRUVXVSHFWHGDGYHUVHUHDFWLRQWKDWSODFHVWKHSDWLHQWRUVXEMHFWLQWKHYLHZRI
WKHLQYHVWLJDWRURUVSRQVRUDWLPPHGLDWHULVNRIGHDWKIURPWKHUHDFWLRQDVLWRFFXUUHGLHLW
GRHVQRWLQFOXGHDUHDFWLRQWKDWKDGLWRFFXUUHGLQDPRUHVHYHUHIRUPPLJKWKDYHFDXVHGGHDWK

3URWRFRO'HYLDWLRQ1,+'HILQLWLRQ
$Q\FKDQJHGLYHUJHQFHRUGHSDUWXUHIURPWKH,5%DSSURYHGUHVHDUFKSURWRFRO

1RQFRPSOLDQFH 1,+'HILQLWLRQ
7KHIDLOXUHWRFRPSO\ZLWKDSSOLFDEOH1,++XPDQ5HVHDUFK3URWHFWLRQV3URJUDP+533
SROLFLHV,5%UHTXLUHPHQWVRUUHJXODWRU\UHTXLUHPHQWVIRUWKHSURWHFWLRQRIKXPDQUHVHDUFK
VXEMHFWV
 8QDQWLFLSDWHG3UREOHP
$Q\LQFLGHQWH[SHULHQFHRURXWFRPHWKDW
x
,VXQH[SHFWHGLQWHUPVRIQDWXUHVHYHULW\RUIUHTXHQF\LQUHODWLRQWR
DWKHUHVHDUFKULVNVWKDWDUHGHVFULEHGLQWKH,5%DSSURYHGUHVHDUFKSURWRFRODQG
LQIRUPHGFRQVHQWGRFXPHQW,QYHVWLJDWRU¶V%URFKXUHRURWKHUVWXG\GRFXPHQWVDQG
EWKHFKDUDFWHULVWLFVRIWKHVXEMHFWSRSXODWLRQEHLQJVWXGLHG$1'
x
,VUHODWHGRUSRVVLEO\UHODWHGWRSDUWLFLSDWLRQLQWKHUHVHDUFK$1'
x
6XJJHVWVWKDWWKHUHVHDUFKSODFHVVXEMHFWVRURWKHUVDWDJUHDWHUULVNRIKDUP LQFOXGLQJ
SK\VLFDOSV\FKRORJLFDOHFRQRPLFRUVRFLDOKDUPWKDQZDVSUHYLRXVO\NQRZQRU
UHFRJQL]HG

$GYHUVH(YHQW5HSRUWLQJ&ULWHULD
&7&$(WHUP$(GHVFULSWLRQDQGJUDGH 7KHGHVFULSWLRQVDQGJUDGLQJVFDOHVIRXQGLQWKH
UHYLVHG1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV&7&$(YHUVLRQZLOOEH
XWLOL]HGXQWLO'HFHPEHUIRU$(UHSRUWLQJ&7&$(YHUVLRQZLOOEHXWLOL]HG
EHJLQQLQJ-DQXDU\ $OODSSURSULDWHWUHDWPHQWDUHDVVKRXOGKDYHDFFHVVWRDFRS\RIWKH
&7&$(YHUVLRQ $FRS\RIWKH&7&$(YHUVLRQFDQEHGRZQORDGHGIURPWKH&7(3ZHE
VLWHKWWSFWHSFDQFHUJRY
$OOGDWDFROOHFWLRQDQGUHSRUWLQJZLOOEHFRRUGLQDWHGWKURXJK
0DXUHHQ(GJHUO\51
1DWLRQDO&DQFHU,QVWLWXWH1&,
%XLOGLQJ
5RRP1
 &HQWHU'ULYH
%HWKHVGD0DU\ODQG

HGJHUO\P#SEPDFQFLQLKJRY



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

1&,,5%5HSRUWLQJ

1&,,5%([SHGLWHG5HSRUWLQJRI8QDQWLFLSDWHG3UREOHPVDQG'HDWKV
7KHSURWRFRO3,ZLOOUHSRUWWRWKH1&,,5%
x
$OOGHDWKVH[FHSWGHDWKVGXHWRSURJUHVVLYHGLVHDVH
x
$OO3URWRFRO'HYLDWLRQV
x
$OO8QDQWLFLSDWHG3UREOHPV
x
$OOVHULRXVQRQFRPSOLDQFH
5HSRUWVPXVWEHUHFHLYHGE\WKH1&,,5%ZLWKLQZRUNLQJGD\VRI3,DZDUHQHVVYLDL5,6
1&,,5% FRQWDFWLQIRUPDWLRQ
(PDLO QFLLUEDGPLQ#PDLOQLKJRY
0DLO%XLOGLQJ5RRP
2OG*HRUJHWRZQ5RDG
%HWKHVGD0'
)D[

1&,,5%5HTXLUHPHQWVIRU3,5HSRUWLQJDW&RQWLQXLQJ5HYLHZ
7KHSURWRFRO3,ZLOOUHSRUWWRWKH1&,,5%
 $VXPPDU\RIDOOSURWRFROGHYLDWLRQVLQDWDEXODUIRUPDWWRLQFOXGHWKHGDWHWKHGHYLDWLRQ
RFFXUUHGDEULHIGHVFULSWLRQRIWKHGHYLDWLRQDQGDQ\FRUUHFWLYHDFWLRQ
 $VXPPDU\RIDQ\LQVWDQFHVRIQRQFRPSOLDQFH
 $WDEXODUVXPPDU\RIWKHIROORZLQJDGYHUVHHYHQWV
x
$OO*UDGHXQH[SHFWHG HYHQWVWKDWDUHSRVVLEO\SUREDEO\RUGHILQLWHO\UHODWHGWRWKH
UHVHDUFK
x
$OO*UDGHDQGHYHQWVWKDWDUHSRVVLEO\SUREDEO\ RUGHILQLWHO\UHODWHGWRWKHUHVHDUFK
x
$OO*UDGHHYHQWVUHJDUGOHVVRIDWWULEXWLRQ
x
$OO6HULRXV(YHQWVUHJDUGOHVVRIDWWULEXWLRQ
127(*UDGHHYHQWVDUHQRWUHTXLUHGWREHUHSRUWHG

1&,,5%5HSRUWLQJRI,1'6DIHW\5HSRUWV
2QO\,1'6DIHW\5HSRUWVWKDWPHHWWKHGHILQLWLRQRIDQXQDQWLFLSDWHGSUREOHP ZLOOQHHGWREH
UHSRUWHGWRWKH1&,,5%

,1'63216255(3257,1*&5,7(5,$$'9(56((9(176/,67$1'
5(3257,1*5(48,5(0(176
$GYHUVHHYHQW$(PRQLWRULQJDQGUHSRUWLQJLVDURXWLQHSDUWRIHYHU\FOLQLFDOWULDO7KH
IROORZLQJOLVWRI$(VDQGWKHFKDUDFWHULVWLFVRIDQREVHUYHG$(ZLOO GHWHUPLQHZKHWKHUWKH
HYHQWUHTXLUHVH[SHGLWHGYLD&7(3$(56UHSRUWLQJLQDGGLWLRQ WRURXWLQHYLD&706RU
&'86UHSRUWLQJ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

&RPSUHKHQVLYH$GYHUVH(YHQWVDQG3RWHQWLDO5LVNV&$(35/LVWV
&$(35VIRU&7(36XSSOLHG,QYHVWLJDWLRQDO$JHQWV
&RPSUHKHQVLYH$GYHUVH(YHQWVDQG3RWHQWLDO5LVNVOLVW&$(35
IRU
36%RUWH]RPLE 9HOFDGH 16&
7KH&RPSUHKHQVLYH$GYHUVH(YHQWV DQG3RWHQWLDO5LVNVOLVW&$(35SURYLGHVDVLQJOHOLVWRI
UHSRUWHGDQGRUSRWHQWLDODGYHUVHHYHQWV$(DVVRFLDWHGZLWKDQDJHQWXVLQJDXQLIRUP
SUHVHQWDWLRQRIHYHQWVE\ERG\V\VWHP,QDGGLWLRQWRWKHFRPSUHKHQVLYHOLVWDVXEVHWWKH
6SHFLILF3URWRFRO([FHSWLRQVWR([SHGLWHG5HSRUWLQJ63((5DSSHDUVLQDVHSDUDWHFROXPQDQG
LVLGHQWLILHGZLWKEROGDQGLWDOLFL]HGWH[W7KLVVXEVHWRI$(V63((5LVDOLVWRIHYHQWVWKDWDUH
SURWRFROVSHFLILFH[FHSWLRQVWRH[SHGLWHGUHSRUWLQJWR1&,H[FHSWDVQRWHGEHORZ5HIHUWRWKH

&7(31&,*XLGHOLQHV$GYHUVH(YHQW5HSRUWLQJ5HTXLUHPHQWV

KWWSFWHSFDQFHUJRYSURWRFRO'HYHORSPHQWHOHFWURQLFBDSSOLFDWLRQVGRFVDHJXLGHOLQHVSGI IRU
IXUWKHUFODULILFDWLRQ)UHTXHQF\LVSURYLGHGEDVHGRQ SDWLHQWV%HORZLVWKH&$(35IRU36
ERUWH]RPLE9HOFDGH
127(5HSRUW $(VRQWKH63((521/<,) WKH\H[FHHGWKHJUDGHQRWHGLQSDUHQWKHVHVQH[WWR
WKH$(LQWKH63((5,IWKLV&$(35LVSDUWRIDFRPELQDWLRQSURWRFROXVLQJPXOWLSOH
LQYHVWLJDWLRQDODJHQWVDQGKDVDQ$(OLVWHGRQGLIIHUHQW63((5VXVHWKHORZHURIWKHJUDGHVWR
GHWHUPLQHLIH[SHGLWHGUHSRUWLQJLVUHTXLUHG
9HUVLRQ-XQH
$GYHUVH(YHQWVZLWK3RVVLEOH
5HODWLRQVKLSWR36%RUWH]RPLE9HOFDGH
&7&$(7HUP
>Q @
6SHFLILF3URWRFRO([FHSWLRQV
WR([SHGLWHG5HSRUWLQJ
63((5
/LNHO\!
/HVV/LNHO\ 
5DUHEXW6HULRXV
%/22'$1'/<03+$7,&6<67(0',625'(56
$QHPLD
$QHPLD*U
&$5',$&',625'(56
+HDUWIDLOXUH
*$6752,17(67,1$/',625'(56
$EGRPLQDOSDLQ
$EGRPLQDOSDLQ*U
&RQVWLSDWLRQ
&RQVWLSDWLRQ*U
'LDUUKHD
'LDUUKHD*U
'\VSHSVLD
'\VSHSVLD*U
*DVWURLQWHVWLQDOKHPRUUKDJH
*DVWURLQWHVWLQDOSHUIRUDWLRQ
,OHXV
,OHXV*U
1DXVHD
1DXVHD*U
9RPLWLQJ
9RPLWLQJ*U
*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216
&KLOOV
&KLOOV*U
(GHPDOLPEV
(GHPDOLPEV*U
)DWLJXH
)DWLJXH*U
)HYHU
)HYHU*U
,1)(&7,216$1',1)(67$7,216



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
$GYHUVH(YHQWVZLWK3RVVLEOH
5HODWLRQVKLSWR36%RUWH]RPLE9HOFDGH
&7&$(7HUP
>Q @
6SHFLILF3URWRFRO([FHSWLRQV
WR([SHGLWHG5HSRUWLQJ
63((5
/LNHO\!
/HVV/LNHO\ 
5DUHEXW6HULRXV
,QIHFWLRQ
,QIHFWLRQ *U
,19(67,*$7,216
1HXWURSKLOFRXQWGHFUHDVHG
1HXWURSKLOFRXQWGHFUHDVHG*U

3ODWHOHWFRXQWGHFUHDVHG
3ODWHOHWFRXQWGHFUHDVHG*U
:HLJKWORVV
0(7$%2/,60$1'1875,7,21',625'(56
$QRUH[LD
$QRUH[LD*U
'HK\GUDWLRQ
086&8/26.(/(7$/$1'&211(&7,9(7,668(',625'(56
$UWKUDOJLD
$UWKUDOJLD*U
%DFNSDLQ
%DFNSDLQ*U
%RQHSDLQ
%RQHSDLQ*U
0XVFXORVNHOHWDODQGFRQQHFWLYH
WLVVXHGLVRUGHU 2WKHUPXVFOH
VSDVPV
0\DOJLD
0\DOJLD*U
3DLQLQH[WUHPLW\
3DLQLQH[WUHPLW\*U
1(592866<67(0',625'(56
'L]]LQHVV
'L]]LQHVV*U
+HDGDFKH
+HDGDFKH*U
/HXNRHQFHSKDORSDWK\
1HXUDOJLD
1HXUDOJLD*U
3DUHVWKHVLD
3HULSKHUDOPRWRUQHXURSDWK\
3HULSKHUDOPRWRUQHXURSDWK\*U

3HULSKHUDOVHQVRU\QHXURSDWK\
3HULSKHUDOVHQVRU\QHXURSDWK\
*U
5HYHUVLEOHSRVWHULRU
OHXNRHQFHSKDORSDWK\V\QGURPH
36<&+,$75,&',625'(56
$Q[LHW\
,QVRPQLD
,QVRPQLD*U
5(1$/$1'85,1$5<',625'(56
$FXWHNLGQH\LQMXU\
5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56
$GXOWUHVSLUDWRU\GLVWUHVVV\QGURPH
&RXJK
&RXJK*U
'\VSQHD
'\VSQHD*U
3KDU\QJHDOPXFRVLWLV
3KDU\QJHDOPXFRVLWLV*U
3XOPRQDU\K\SHUWHQVLRQ
6.,1$1'68%&87$1(2867,668(',625'(56
5DVKPDFXORSDSXODU
5DVKPDFXORSDSXODU*U
9$6&8/$5',625'(56
+\SRWHQVLRQ
+\SRWHQVLRQ*U



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7KLVWDEOHZLOOEHXSGDWHGDVWKHWR[LFLW\SURILOHRIWKHDJHQWLVUHYLVHG8SGDWHVZLOOEHGLVWULEXWHGWRDOO3ULQFLSDO
,QYHVWLJDWRUVDWWKHWLPHRIUHYLVLRQ7KHFXUUHQWYHUVLRQFDQEHREWDLQHGE\FRQWDFWLQJ
3,2#&7(31&,1,+*29<RXUQDPHWKHQDPHRIWKHLQYHVWLJDWRUWKHSURWRFRODQGWKHDJHQWVKRXOGEH
LQFOXGHGLQWKHHPDLO
*DVWURLQWHVWLQDOKHPRUUKDJHLQFOXGHV$QDOKHPRUUKDJH&HFDOKHPRUUKDJH&RORQLFKHPRUUKDJH'XRGHQDO
KHPRUUKDJH(VRSKDJHDOKHPRUUKDJH(VRSKDJHDOYDULFHVKHPRUUKDJH*DVWULFKHPRUUKDJH+HPRUUKRLGDO
KHPRUUKDJH,OHDOKHPRUUKDJH,QWUDDEGRPLQDOKHPRUUKDJH-HMXQDOKHPRUUKDJH/RZHUJDVWURLQWHVWLQDO
KHPRUUKDJH2UDOKHPRUUKDJH3DQFUHDWLFKHPRUUKDJH5HFWDOKHPRUUKDJH5HWURSHULWRQHDOKHPRUUKDJHDQG8SSHU
JDVWURLQWHVWLQDOKHPRUUKDJHXQGHUWKH*$6752,17(67,1$/',625'(5662&
*DVWURLQWHVWLQDOSHUIRUDWLRQLQFOXGHV&RORQLFSHUIRUDWLRQ'XRGHQDOSHUIRUDWLRQ(VRSKDJHDOSHUIRUDWLRQ*DVWULF
SHUIRUDWLRQ,OHDOSHUIRUDWLRQ-HMXQDOSHUIRUDWLRQ5HFWDOSHUIRUDWLRQDQG6PDOOLQWHVWLQDOSHUIRUDWLRQXQGHUWKH
*$6752,17(67,1$/',625'(5662&
,QIHFWLRQLQFOXGHVDOOVLWHVRILQIHFWLRQXQGHUWKH,1)(&7,216$1',1)(67$7,21662&
$OVRUHSRUWHGRQ36ERUWH]RPLE9HOFDGHWULDOVEXWZLWKWKHUHODWLRQVKLSWR36ERUWH]RPLE
9HOFDGHVWLOOXQGHWHUPLQHG
%/22'$1'/<03+$7,&6<67(0',625'(56  %ORRGDQGO\PSKDWLFV\VWHPGLVRUGHUV 2WKHU
KHPDWRFULWORZ%ORRGDQGO\PSKDWLFV\VWHPGLVRUGHUV 2WKHUO\PSKDGHQRSDWK\'LVVHPLQDWHGLQWUDYDVFXODU
FRDJXODWLRQ)HEULOHQHXWURSHQLD+HPRO\WLFXUHPLFV\QGURPH/HXNRF\WRVLV
&$5',$&',625'(56  $FXWHFRURQDU\V\QGURPH$V\VWROH$WULDOILEULOODWLRQ$WULDOIOXWWHU$WULRYHQWULFXODU
EORFNFRPSOHWH&DUGLDFDUUHVW&DUGLDFGLVRUGHUV 2WKHUFDUGLDFDP\ORLGRVLV&DUGLDFGLVRUGHUV 2WKHU
FDUGLRPHJDO\&KHVWSDLQ FDUGLDF/HIWYHQWULFXODUV\VWROLFG\VIXQFWLRQ0RELW]W\SH,0\RFDUGLDOLQIDUFWLRQ
3DOSLWDWLRQV3HULFDUGLDOHIIXVLRQ3HULFDUGLDOWDPSRQDGH3HULFDUGLWLV5LJKWYHQWULFXODUG\VIXQFWLRQ6LQXV
EUDG\FDUGLD6LQXVWDFK\FDUGLD6XSUDYHQWULFXODUWDFK\FDUGLD9HQWULFXODUDUUK\WKPLD9HQWULFXODUILEULOODWLRQ
9HQWULFXODUWDFK\FDUGLD
($5$1'/$%<5,17+',625'(56  ([WHUQDOHDULQIODPPDWLRQ+HDULQJLPSDLUHG7LQQLWXV
(1'2&5,1(',625'(56  +\SRWK\URLGLVP
(<(',625'(56  %OXUUHGYLVLRQ&RQMXQFWLYLWLV'U\H\H([WUDRFXODUPXVFOHSDUHVLV(\HGLVRUGHUV  2WKHU
FKDOD]LRQ(\HGLVRUGHUV 2WKHUFKRURLGDOHIIXVLRQ(\HGLVRUGHUV 2WKHUFRQMXQFWLYDOKHPRUUKDJH(\H
GLVRUGHUV 2WKHUUHWLQDOKHPRUUKDJHZLWKELODWHUDOYLVLRQLPSDLUPHQW.HUDWLWLV:DWHULQJH\HV
*$6752,17(67,1$/',625'(56  $EGRPLQDOGLVWHQVLRQ$VFLWHV%ORDWLQJ&ROLWLV'U\PRXWK'XRGHQDO
XOFHU'\VSKDJLD(QWHURFROLWLV(VRSKDJLWLV)ODWXOHQFH*DVWULWLV*DVWURHVRSKDJHDOUHIOX[GLVHDVH*DVWURLQWHVWLQDO
GLVRUGHUV 2WKHUFRORQLFZDOOWKLFNHQLQJ*DVWURLQWHVWLQDOGLVRUGHUV 2WKHUHDUO\VDWLHW\*DVWURLQWHVWLQDO
GLVRUGHUV 2WKHUHUXFWDWLRQ*DVWURLQWHVWLQDOGLVRUGHUV 2WKHULOHLWLV*DVWURLQWHVWLQDOGLVRUGHUV 2WKHULVFKHPLF
ERZHO*DVWURLQWHVWLQDOGLVRUGHUV 2WKHUPRXWKWRQJXHXOFHUDWLRQ*DVWURLQWHVWLQDOGLVRUGHUV  2WKHUUHWFKLQJ
*DVWURLQWHVWLQDOSDLQ*LQJLYDOSDLQ+HPRUUKRLGV0XFRVLWLVRUDO2UDOSDLQ3DQFUHDWLWLV6PDOOLQWHVWLQDO
REVWUXFWLRQ7\SKOLWLV
*(1(5$/',625'(56$1'$'0,1,675$7,216,7(&21',7,216  (GHPDIDFH)OXOLNHV\PSWRPV
*DLWGLVWXUEDQFH *HQHUDOGLVRUGHUVDQGDGPLQLVWUDWLRQVLWHFRQGLWLRQV 2WKHUFDWKHWHUUHODWHG
FRPSOLFDWLRQ*HQHUDOGLVRUGHUVDQGDGPLQLVWUDWLRQVLWHFRQGLWLRQV 2WKHUKHSDWRUHQDOV\QGURPH+\SRWKHUPLD
,QMHFWLRQVLWHUHDFWLRQ0DODLVH0XOWLRUJDQIDLOXUH1RQFDUGLDFFKHVWSDLQ3DLQ6XGGHQGHDWK126
+(3$72%,/,$5<',625'(56  +HSDWLFIDLOXUH+HSDWRELOLDU\GLVRUGHUV 2WKHUKHSDWLWLV+HSDWRELOLDU\
GLVRUGHUV 2WKHUSRUWDOYHLQWKURPERVLV+HSDWRELOLDU\GLVRUGHUV 2WKHU92'
,0081(6<67(0',625'(56  $OOHUJLFUHDFWLRQ$QDSK\OD[LV&\WRNLQHUHOHDVHV\QGURPH
,1-85<32,621,1*$1'352&('85$/&203/,&$7,216  %UXLVLQJ)DOO)UDFWXUH9DVFXODUDFFHVV
FRPSOLFDWLRQ
,19(67,*$7,216  $FWLYDWHGSDUWLDOWKURPERSODVWLQWLPHSURORQJHG$ODQLQHDPLQRWUDQVIHUDVHLQFUHDVHG
$ONDOLQHSKRVSKDWDVHLQFUHDVHG$VSDUWDWHDPLQRWUDQVIHUDVHLQFUHDVHG%ORRGELOLUXELQLQFUHDVHG&'O\PSKRF\WHV
GHFUHDVHG&3.LQFUHDVHG&DUERQPRQR[LGHGLIIXVLQJFDSDFLW\GHFUHDVHG&DUGLDFWURSRQLQ,LQFUHDVHG&DUGLDF
WURSRQLQ7LQFUHDVHG&KROHVWHUROKLJK&UHDWLQLQHLQFUHDVHG(MHFWLRQIUDFWLRQGHFUHDVHG**7LQFUHDVHG,15
LQFUHDVHG,QYHVWLJDWLRQV 2WKHUDOEXPLQ,QYHVWLJDWLRQV 2WKHU%81,QYHVWLJDWLRQV 2WKHUORZFKORULGH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
,QYHVWLJDWLRQV 2WKHUSDQF\WRSHQLD/LSDVHLQFUHDVHG/\PSKRF\WHFRXQWGHFUHDVHG6HUXPDP\ODVHLQFUHDVHG
:HLJKWJDLQ:KLWHEORRGFHOOGHFUHDVHG
0(7$%2/,60$1'1875,7,21',625'(56  $FLGRVLV+\SHUFDOFHPLD+\SHUJO\FHPLD+\SHUNDOHPLD
+\SHUXULFHPLD+\SRDOEXPLQHPLD+\SRFDOFHPLD+\SRJO\FHPLD+\SRNDOHPLD+\SRPDJQHVHPLD
+\SRQDWUHPLD+\SRSKRVSKDWHPLD0HWDEROLVPDQGQXWULWLRQGLVRUGHUV 2WKHUIDLOXUHWRWKULYH0HWDEROLVPDQG
QXWULWLRQGLVRUGHUV 2WKHUK\SRSURWHLQHPLD7XPRUO\VLVV\QGURPH
086&8/26.(/(7$/$1'&211(&7,9(7,668(',625'(56  $UWKULWLV$YDVFXODUQHFURVLV%XWWRFN
SDLQ&KHVWZDOOSDLQ*HQHUDOL]HGPXVFOHZHDNQHVV-RLQWUDQJHRIPRWLRQGHFUHDVHG0XVFOHZHDNQHVVORZHUOLPE
0XVFXORVNHOHWDODQGFRQQHFWLYHWLVVXHGLVRUGHU 2WKHUFUDPSLQJ2VWHRQHFURVLVRIMDZ
1(23/$606%(1,*10$/,*1$17$1'8163(&,),(',1&/&<676$1'32/<36  7XPRUSDLQ
1(592866<67(0',625'(56  $FRXVWLFQHUYHGLVRUGHU126$NDWKLVLD$WD[LD&RJQLWLYHGLVWXUEDQFH
'HSUHVVHGOHYHORIFRQVFLRXVQHVV'\VHVWKHVLD'\VJHXVLD'\VSKDVLD(GHPDFHUHEUDO(QFHSKDORSDWK\)DFLDO
PXVFOHZHDNQHVV)DFLDOQHUYHGLVRUGHU+\SHUVRPQLD,QWUDFUDQLDOKHPRUUKDJH,VFKHPLDFHUHEURYDVFXODU
/HWKDUJ\0HPRU\LPSDLUPHQW1HUYRXVV\VWHPGLVRUGHUV 2WKHUDXWRQRPLFQHXURSDWK\1HUYRXVV\VWHP
GLVRUGHUV 2WKHU%HOO
VSDOV\1HUYRXVV\VWHPGLVRUGHUV 2WKHUFUDQLDOSDOV\1HUYRXVV\VWHPGLVRUGHUV 2WKHU
G\VDXWRQRPLD1HUYRXVV\VWHPGLVRUGHUV 2WKHU/VLGHGIDFLDOGURRS1HUYRXVV\VWHPGLVRUGHUV 2WKHU
SDUDO\VLV1HUYRXVV\VWHPGLVRUGHUV 2WKHUSRO\QHXURSDWK\1HUYRXVV\VWHPGLVRUGHUV 2WKHUVSLQDOFRUG
FRPSUHVVLRQ1HUYRXVV\VWHPGLVRUGHUV 2WKHUWRQJXHSDUDO\VLV3UHV\QFRSH6HL]XUH6RPQROHQFH6WURNH
6\QFRSH7UHPRU9DVRYDJDOUHDFWLRQ
36<&+,$75,&',625'(56  $JLWDWLRQ&RQIXVLRQ'HOLULXP'HSUHVVLRQ3HUVRQDOLW\FKDQJH 3V\FKRVLV
5(1$/$1'85,1$5<',625'(56  %ODGGHUVSDVP&KURQLFNLGQH\GLVHDVH&\VWLWLVQRQLQIHFWLYH
+HPDWXULD3URWHLQXULD5HQDODQGXULQDU\GLVRUGHUV 2WKHUELODWHUDOK\GURQHSKURVLV5HQDODQGXULQDU\GLVRUGHUV
2WKHUFDOFXOXVUHQDO5HQDODQGXULQDU\GLVRUGHUV 2WKHUJORPHUXODUQHSKULWLVSUROLIHUDWLYH8ULQDU\IUHTXHQF\
8ULQDU\LQFRQWLQHQFH8ULQDU\UHWHQWLRQ8ULQDU\WUDFWSDLQ
5(63,5$725<7+25$&,&$1'0(',$67,1$/',625'(56  $OOHUJLFUKLQLWLV$VSLUDWLRQ$WHOHFWDVLV
%URQFKRSXOPRQDU\KHPRUUKDJH%URQFKRVSDVP(SLVWD[LV+LFFXSV+\SR[LD/DU\QJHDOHGHPD0HGLDVWLQDO
KHPRUUKDJH3KDU\QJRODU\QJHDOSDLQ3OHXUDOHIIXVLRQ3OHXULWLFSDLQ3QHXPRQLWLV3RVWQDVDOGULS3XOPRQDU\
HGHPD5HVSLUDWRU\IDLOXUH5HVSLUDWRU\WKRUDFLFDQGPHGLDVWLQDOGLVRUGHUV 2WKHUREVWUXFWLYHDLUZD\VGLVHDVH
5HVSLUDWRU\WKRUDFLFDQGPHGLDVWLQDOGLVRUGHUV 2WKHUSOHXULV\5HVSLUDWRU\WKRUDFLFDQGPHGLDVWLQDOGLVRUGHUV
2WKHUUHVSLUDWRU\GLVWUHVV5HVSLUDWRU\WKRUDFLFDQGPHGLDVWLQDOGLVRUGHUV 2WKHUWDFK\SQHD7UDFKHDOPXFRVLWLV
7UDFKHDOVWHQRVLV9RLFHDOWHUDWLRQ
6.,1$1'68%&87$1(2867,668(',625'(56  $ORSHFLD%XOORXVGHUPDWLWLV'U\VNLQ(U\WKHPD
PXOWLIRUPH(U\WKURGHUPD+\SHUKLGURVLV3DLQRIVNLQ3DOPDUSODQWDUHU\WKURG\VHVWKHVLDV\QGURPH3UXULWXV
3XUSXUD5DVKDFQHLIRUP6NLQDQGVXEFXWDQHRXVWLVVXHGLVRUGHUV 2WKHUDQJLRHGHPD6NLQDQGVXEFXWDQHRXV
WLVVXHGLVRUGHUV 2WKHUOHXNRFODVWLFYDVFXOLWLV6NLQDQGVXEFXWDQHRXVWLVVXHGLVRUGHUV 2WKHU6NLQOHVLRQ126
8UWLFDULD
9$6&8/$5',625'(56  &DSLOODU\OHDNV\QGURPH)OXVKLQJ+HPDWRPD+\SHUWHQVLRQ7KURPERHPEROLF
HYHQW9DVFXODUGLVRUGHUV 2WKHUWUDFKVLWH9DVFXOLWLV
1RWH36ERUWH]RPLE9HOFDGHLQFRPELQDWLRQZLWKRWKHUDJHQWVFRXOGFDXVHDQH[DFHUEDWLRQRIDQ\DGYHUVH
HYHQWFXUUHQWO\NQRZQWREHFDXVHGE\WKHRWKHUDJHQWRUWKHFRPELQDWLRQPD\UHVXOWLQHYHQWVQHYHUSUHYLRXVO\
DVVRFLDWHGZLWKHLWKHUDJHQW

$GYHUVH(YHQW/LVWVIRU9DQGHWDQLE&$35(/6$='
 (PHUJLQJ6DIHW\3URILOH
$VDUHVXOWRIWKHXSGDWHG9DQGHWDQLE&$35(/6$=',QYHVWLJDWRU¶V%URFKXUH(GLWLRQ
QHZFOLQLFDOWULDOLQIRUPDWLRQKDVEHHQLQFOXGHG5HSRUWHGDGYHUVHHYHQWVWKDWPD\EHUHODWHG
WRYDQGHWDQLEDUHOLVWHGEHORZE\ERG\V\VWHP
x
&DUGLRYDVFXODU ± DEQRUPDO(&*ZLWKRUZLWKRXW47SURORQJDWLRQLHHLWKHU7ZDYHRU
67VHJPHQWFKDQJHVFRQVLVWHQWZLWKUHSRODUL]DWLRQDEQRUPDOLWLHVWRUVDGHGHSRLQWHVDQG
YHQWULFXODUWDFK\FDUGLDERWKDWPJGDLO\GRVHDQGK\SHUWHQVLRQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
x
&HQWUDO1HUYRXV6\VWHP ± KHDGDFKH UHYHUVLEOH3RVWHULRU/HXNRHQFHSKDORSDWK\
6\QGURPH
x
'LJHVWLYH ± FRQVWLSDWLRQGLDUUKHDQDXVHDYRPLWLQJ
x
+HPDWRORJLFDQG/\PSKDWLF ± HFFK\PRVLVDQGWKURPERF\WRSHQLD
x
,QYHVWLJDWLRQV ± HOHYDWHGOLYHUIXQFWLRQWHVWVJHQHUDOO\&7&&7&$(JUDGH
SUHOLPLQDU\GDWDVXJJHVWVWKHVHDUHUHYHUVLEOHLQVRPHFDVHVZKLOHFRQWLQXLQJWKHUDS\
ZHLJKWORVV
x
0HWDEROLFDQG1XWULWLRQDO ± GHK\GUDWLRQK\SRNDOHPLDK\SRPDJQHVHPLD
K\SRSKRVSKDWHPLDDQRUH[LD
x
6NLQDQG$SSHQGDJHV ± DFQHLIRUPUDVKSUXULWXVPDFXODURUPDFXSDSXODUUDVK
JHQHUDOL]HGRUORFDOL]HGORFDOL]HGDQGJHQHUDOL]HGHU\WKHPDSKRWRVHQVLWLYLW\UHDFWLRQ
VZHDWLQJ2QRFFDVLRQHVSHFLDOO\ZKHQJLYHQZLWKFKHPRWKHUDS\WKHVHKDYH
SURJUHVVHGWRPRUHVHULRXVFRQGLWLRQVWRLQFOXGHH[IROLDWLYHGHUPDWLWLVVNLQ
GHVTXDPDWLRQHU\WKURGHUPDWR[LFRGHUPDWR[LFHSLGHUPDOQHFURO\VLVHU\WKHPD
PXOWLIRUPH
x
5HVSLUDWRU\ ± LQWHUVWLWLDOOXQJGLVHDVHSXOPRQDU\HPEROLVP$YHU\VPDOOQXPEHURI
SDWLHQWVZLWKOXQJFDQFHUUHFHLYLQJYDQGHWDQLEKDYHGHYHORSHGVKRUWQHVVRIEUHDWKDQG
FRXJKGXHWRLQIODPPDWLRQRUVFDUWLVVXHIRUPDWLRQLQWKHOXQJVDOWKRXJKWKLVFRXOGEH
GXHWRWKHXQGHUO\LQJGLVHDVH
x
5HQDO ± SURWHLQXULDKHPDWXULD
x
9DVFXODU ± DUWHULDOLVFKDHPLFHYHQWVLQFOXGLQJP\RFDUGLDOLQIDUFWLRQVWURNHSHULSKHUDO
LVFKDHPLDYHQRXVWKURPERHPEROLVP$VPDOOQXPEHURISDWLHQWVUHFHLYLQJYDQGHWDQLE
KDYHGHYHORSHGEORRGFORWVDIIHFWLQJWKHOHJVRUOXQJVPD\KDYHEHHQGXHWRWKH
SDWLHQW¶VFDQFHURURWKHULOOQHVVDWWKHWLPHKRZHYHULWLVFRQVLGHUHGSRVVLEOHWKDW
YDQGHWDQLEPLJKWLQFUHDVHWKHULVNIRUGHYHORSLQJEORRGFORWV
x
3V\FKLDWULF± DQ[LHW\GHSUHVVLRQLQVRPQLD
x
*HQHUDO ± DVWKHQLDIDWLJXH
1RWH $ERYHWH[WWDNHQIURP9DQGHWDQLE=',QYHVWLJDWRU¶V%URFKXUH(GLWLRQ1XPEHU

0DUFK)RUDGGLWLRQDOGHWDLOVRQYDQGHWDQLESOHDVHUHIHUWRWKHFXUUHQW9DQGHWDQLE
,QYHVWLJDWRU¶V%URFKXUH
 $GYHUVH(YHQW&KDUDFWHULVWLFV
x
&7&$(WHUP$(GHVFULSWLRQDQGJUDGH 7KHGHVFULSWLRQVDQGJUDGLQJVFDOHVIRXQGLQ
WKHUHYLVHG1&,&RPPRQ7HUPLQRORJ\&ULWHULDIRU$GYHUVH(YHQWV&7&$(YHUVLRQ
ZLOOEHXWLOL]HGXQWLO'HFHPEHUIRU$(UHSRUWLQJ&7&$(YHUVLRQZLOOEH
XWLOL]HGEHJLQQLQJ-DQXDU\ $OODSSURSULDWHWUHDWPHQWDUHDVVKRXOGKDYHDFFHVVWRD
FRS\RIWKH&7&$(YHUVLRQ $FRS\RIWKH&7&$(YHUVLRQFDQEHGRZQORDGHGIURP
WKH&7(3ZHEVLWHKWWSFWHSFDQFHUJRY
x
µ([SHFWHGQHVV¶$(VFDQEHµ8QH[SHFWHG¶RUµ([SHFWHG¶VHH6HFWLRQ;DERYH IRU
H[SHGLWHGUHSRUWLQJSXUSRVHVRQO\µ([SHFWHG¶$(VWKH$6$(/DUHEROGDQGLWDOLFL]HG LQ
WKH&$(356HFWLRQ;
x
$WWULEXWLRQ RIWKH$(

'HILQLWH± 7KH$(LVFOHDUO\UHODWHG WRWKHVWXG\WUHDWPHQW

3UREDEOH± 7KH$(LVOLNHO\UHODWHGWRWKHVWXG\WUHDWPHQW

3RVVLEOH± 7KH$(PD\EHUHODWHG WRWKHVWXG\WUHDWPHQW



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

8QOLNHO\± 7KH$(LVGRXEWIXOO\UHODWHGWRWKHVWXG\WUHDWPHQW

8QUHODWHG± 7KH$(LVFOHDUO\127UHODWHG WRWKHVWXG\WUHDWPHQW

([SHGLWHG$GYHUVH(YHQW5HSRUWLQJ
([SHGLWHG$(UHSRUWLQJIRUWKLVVWXG\PXVWXVH&7(3$(56 &7(3$GYHUVH(YHQW5HSRUWLQJ
6\VWHPDFFHVVHGYLDWKH&7(3KRPHSDJHKWWSFWHSFDQFHUJRY7KHUHSRUWLQJSURFHGXUHVWR
EHIROORZHGDUHSUHVHQWHGLQWKH³&7(31&,*XLGHOLQHV$GYHUVH(YHQW5HSRUWLQJ
5HTXLUHPHQWV´ZKLFKFDQEHGRZQORDGHGIURPWKH&7(3KRPHSDJHKWWSFWHSFDQFHUJRY
$KRXUQRWLILFDWLRQLVWREHPDGHWR&7(3E\WHOHSKRQHDWRQO\ZKHQ,QWHUQHW
FRQQHFWLYLW\LVGLVUXSWHG2QFH,QWHUQHWFRQQHFWLYLW\LVUHVWRUHGDQ$(UHSRUWVXEPLWWHGE\
SKRQHPXVWEHHQWHUHGHOHFWURQLFDOO\LQWR&7(3$(56 E\WKHRULJLQDOVXEPLWWHUDWWKHVLWH
7KLVLVD3KDVH,,,6WXG\DQGGXULQJWKH3KDVH,SRUWLRQRIWKHVWXG\WKHIROORZLQJ3KDVH,
([SHGLWHG5HSRUWLQJ*XLGHOLQHVZLOODSSO\2QFHWKHVWXG\PRYHVLQWR3KDVH,,WKH3KDVH,,
*XLGHOLQHVWKDWIROORZZLOODSSO\
([SHGLWHG5HSRUWLQJ*XLGHOLQHV ± &7(3$(56 5HSRUWLQJ5HTXLUHPHQWVIRU$GYHUVH(YHQWV
7KDW2FFXU:LWKLQ'D\V RIWKH/DVW'RVHRIWKH,QYHVWLJDWLRQDO$JHQWRQ3KDVH7ULDOV
3KDVH7ULDOV
*UDGH
*UDGH
*UDGH
*UDGHV
	
8QH[SHFWHG
DQG([SHFWHG
8QH[SHFWHG ([SHFWHG
8QH[SHFWHG
([SHFWHG
8QH[SHFWHG
DQG
([SHFWHG
+RVSLWDOL]DWLRQ
<HV
1R
<HV
1R
8QUHODWHG
8QOLNHO\
1RW
5HTXLUHG
1RW
5HTXLUHG
1RW
5HTXLUHG
&DOHQGDU
'D\V
1RW
5HTXLUHG
&DOHQGDU
'D\V
1RW
5HTXLUHG
+RXUV
&DOHQGDU
'D\V
3RVVLEOH
3UREDEOH
'HILQLWH
1RW
5HTXLUHG
&DOHQGDU
'D\V
1RW
5HTXLUHG
+RXUV
&DOHQGDU
'D\V
+RXUV
&DOHQGDU
'D\V
&DOHQGDU
'D\V
1RW
5HTXLUHG
+RXUV
&DOHQGDU
'D\V
$GYHUVHHYHQWVZLWKDWWULEXWLRQRISRVVLEOHSUREDEOHRUGHILQLWHWKDWRFFXUJUHDWHU WKDQGD\VDIWHUWKHODVWGRVHRI
WUHDWPHQWZLWKDQDJHQWXQGHUD&7(3,1'UHTXLUHUHSRUWLQJDVIROORZV
&7(3$(56 KRXUQRWLILFDWLRQIROORZHGE\FRPSOHWHUHSRUWZLWKLQFDOHQGDUGD\VIRU
x
*UDGHXQH[SHFWHGHYHQWVZLWKKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQ
x
*UDGHXQH[SHFWHGHYHQWV
x
*UDGHH[SHFWHGHYHQWVDQGXQH[SHFWHGHYHQWV
$OWKRXJKDQ&7(3$(56 KRXUQRWLILFDWLRQLVQRWUHTXLUHGIRU GHDWKFOHDUO\UHODWHGWRSURJUHVVLYHGLVHDVHDIXOOUHSRUWLV
UHTXLUHGDVRXWOLQHGLQWKHWDEOH
'HFHPEHU
1RWH $OOGHDWKVRQVWXG\UHTXLUHERWKURXWLQHDQGH[SHGLWHGUHSRUWLQJUHJDUGOHVVRI
FDXVDOLW\ $WWULEXWLRQWRWUHDWPHQWRURWKHUFDXVHPXVWEHSURYLGHG
x
([SHGLWHG$(UHSRUWLQJWLPHOLQHVGHILQHG
¾ ³KRXUVFDOHQGDUGD\V´± 7KHLQYHVWLJDWRUPXVWLQLWLDOO\UHSRUWWKH$(YLD&7(3
$(56 ZLWKLQKRXUV RIOHDUQLQJRIWKHHYHQWIROORZHGE\DFRPSOHWH&7(3$(56
UHSRUWZLWKLQFDOHQGDUGD\V RIWKHLQLWLDOKRXUUHSRUW
¾ ³FDOHQGDUGD\V´ $FRPSOHWH&7(3$(56 UHSRUWRQWKH$(PXVWEHVXEPLWWHGZLWKLQ
FDOHQGDUGD\VRIWKHLQYHVWLJDWRUOHDUQLQJRIWKHHYHQW
x
$Q\PHGLFDOHYHQWHTXLYDOHQWWR&7&$(JUDGHRUWKDWSUHFLSLWDWHVKRVSLWDOL]DWLRQRU



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
SURORQJDWLRQRIH[LVWLQJKRVSLWDOL]DWLRQPXVWEHUHSRUWHGUHJDUGOHVVRIDWWULEXWLRQDQG
GHVLJQDWLRQDVH[SHFWHGRUXQH[SHFWHGZLWKWKHH[FHSWLRQRIDQ\HYHQWVLGHQWLILHGDV
SURWRFROVSHFLILFH[SHGLWHGDGYHUVHHYHQWUHSRUWLQJH[FOXVLRQV
x
$Q\ HYHQWWKDWUHVXOWVLQSHUVLVWHQWRUVLJQLILFDQWGLVDELOLWLHVLQFDSDFLWLHVFRQJHQLWDO
DQRPDOLHVRUELUWKGHIHFWVPXVWEHUHSRUWHGYLD&7(3$(56 LIWKHHYHQWRFFXUVIROORZLQJ
WUHDWPHQWZLWKDQDJHQWXQGHUD&7(3,1'
x
8VHWKH1&,SURWRFROQXPEHUDQGWKHSURWRFROVSHFLILFSDWLHQW,'DVVLJQHGGXULQJWULDO
UHJLVWUDWLRQRQDOOUHSRUWV
&7(3$(56 5HSRUWLQJ5HTXLUHPHQWVIRU$GYHUVH(YHQWVWKDWRFFXUZLWKLQ'D\V RI
WKH/DVW'RVHRIWKH,QYHVWLJDWLRQDO$JHQWRQ3KDVHDQG7ULDOV
3KDVHDQG7ULDOV
*UDGH
*UDGH
*UDGH
*UDGHV	
8QH[SHFWHG
DQG
([SHFWHG
8QH[SHFWHG
([SHFWHG
8QH[SHFWHG
([SHFWHG
8QH[SHFWHG
([SHFWHG
+RVSLWDOL]DWLRQ
<HV
1R
<HV
1R
8QUHODWHG
8QOLNHO\
1RW
5HTXLUHG
1RW
5HTXLUHG
1RW
5HTXLUHG

&DOHQGDU
'D\V
1RW
5HTXLUHG

&DOHQGDU
'D\V
1RW
5HTXLUHG

&DOHQGDU
'D\V

&DOHQGDU
'D\V
3RVVLEOH
3UREDEOH
'HILQLWH
1RW
5HTXLUHG
&DOHQGDU
'D\V
1RW
5HTXLUHG

&DOHQGDU
'D\V

&DOHQGDU
'D\V

&DOHQGDU
'D\V
1RW
5HTXLUHG
+RXUV
&DOHQGDU
'D\V

&DOHQGDU
'D\V

$GYHUVHHYHQWVZLWKDWWULEXWLRQRISRVVLEOHSUREDEOHRUGHILQLWHWKDWRFFXUJUHDWHU WKDQGD\VDIWHUWKHODVW
GRVHRIWUHDWPHQWZLWKDQDJHQWXQGHUD&7(3,1'UHTXLUHUHSRUWLQJDVIROORZV
&7(3$(56 KRXUQRWLILFDWLRQIROORZHGE\FRPSOHWHUHSRUWZLWKLQFDOHQGDUGD\VIRU
x
*UDGHDQG*UDGHXQH[SHFWHGHYHQWV
&7(3$(56 FDOHQGDUGD\UHSRUW
x
*UDGHXQH[SHFWHGHYHQWVZLWKKRVSLWDOL]DWLRQRUSURORQJDWLRQRIKRVSLWDOL]DWLRQ
x
*UDGHH[SHFWHGHYHQWV

$OWKRXJKDQ&7(3$(56 KRXUQRWLILFDWLRQLVQRWUHTXLUHGIRUGHDWKFOHDUO\UHODWHGWRSURJUHVVLYHGLVHDVHDIXOO
UHSRUWLVUHTXLUHGDVRXWOLQHGLQWKHWDEOH
'HFHPEHU
1RWH$OOGHDWKVRQVWXG\UHTXLUHERWKURXWLQHDQGH[SHGLWHGUHSRUWLQJUHJDUGOHVVRIFDXVDOLW\
$WWULEXWLRQWRWUHDWPHQWRURWKHU FDXVHPXVWEHSURYLGHG
x
([SHGLWHG$(UHSRUWLQJWLPHOLQHVGHILQHG
¾ ³KRXUVFDOHQGDUGD\V´± 7KHLQYHVWLJDWRUPXVWLQLWLDOO\UHSRUWWKH$(YLD&7(3
$(56 ZLWKLQKRXUV RIOHDUQLQJRIWKHHYHQWIROORZHGE\DFRPSOHWH&7(3$(56
UHSRUWZLWKLQFDOHQGDUGD\V RIWKHLQLWLDOKRXUUHSRUW
¾ ³FDOHQGDUGD\V´ $FRPSOHWH&7(3$(56 UHSRUWRQWKH$(PXVWEHVXEPLWWHGZLWKLQ
FDOHQGDUGD\V RIWKHLQYHVWLJDWRUOHDUQLQJRIWKHHYHQW
x
$Q\PHGLFDOHYHQWHTXLYDOHQWWR&7&$(JUDGHRUWKDWSUHFLSLWDWHVKRVSLWDOL]DWLRQRU
SURORQJDWLRQRIH[LVWLQJKRVSLWDOL]DWLRQPXVWEHUHSRUWHGUHJDUGOHVVRIDWWULEXWLRQDQG
GHVLJQDWLRQDVH[SHFWHGRUXQH[SHFWHGZLWKWKHH[FHSWLRQRIDQ\HYHQWVLGHQWLILHGDV
SURWRFROVSHFLILFH[SHGLWHGDGYHUVHHYHQWUHSRUWLQJH[FOXVLRQV
x
$Q\HYHQWWKDWUHVXOWVLQSHUVLVWHQWRUVLJQLILFDQWGLVDELOLWLHVLQFDSDFLWLHVFRQJHQLWDO
DQRPDOLHVRUELUWKGHIHFWVPXVWEHUHSRUWHGYLD&7(3$(56 LIWKHHYHQWRFFXUVIROORZLQJ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
WUHDWPHQWZLWKDQDJHQWXQGHUD&7(3,1'
x
8VHWKH1&,SURWRFROQXPEHUDQGWKHSURWRFROVSHFLILFSDWLHQW,'DVVLJQHGGXULQJWULDO
UHJLVWUDWLRQRQDOOUHSRUWV

5RXWLQH$GYHUVH(YHQW5HSRUWLQJ
$GYHUVH(YHQWVPXVW EHUHSRUWHGLQURXWLQH&'86 VWXG\GDWDVXEPLVVLRQV$(VUHSRUWHG
WKURXJK&7(3$(56 PXVWDOVREHUHSRUWHGLQURXWLQHVWXG\GDWDVXEPLVVLRQV
$(VPXVWEHUHSRUWHGXVLQJWKHURXWLQHUHSRUWLQJUHTXLUHPHQWVGHVFULEHGLQWKHWDEOHEHORZ,Q
JHQHUDO&7(3GHILQHVURXWLQH$(UHSRUWLQJJXLGHOLQHVIRU3KDVHDQG3KDVHWULDOV 'XULQJWKH
3KDVH,DQG,,SRUWLRQVRIWKLVVWXG\&'86&RPSOHWH5HSRUWLQJZLOODSSO\EDVHGRQ&7(3¶V
&RGLQJ/HWWHU
&OLQLFDO'DWD8SGDWH6\VWHP&'86
7KH&'86LVWKHSULPDU\UHSRVLWRU\RIFOLQLFDOGDWDIRU&7(31&,
&'86*XLGHOLQHVIRU5RXWLQH$GYHUVH(YHQW5HSRUWLQJRQ7ULDOVXVLQJ$JHQWVXQGHUD
&7(3,1'
$WWULEXWLRQ
*UDGH
*UDGH
*UDGH
*UDGH
*UDGH
8QUHODWHG
&'86
&'86
&'86
8QOLNHO\
&'86
&'86
&'86
3RVVLEOH
&'86
&'86
&'86
&'86
&'86
3UREDEOH
&'86
&'86
&'86
&'86
&'86
'HILQLWH
&'86
&'86
&'86
&'86
&'86

6HFRQGDU\$0/0'6
7KH$0/0'6HYHQWV ZLOOEHUHSRUWHGYLD&7(3$(56 LQDGGLWLRQWRURXWLQH$(UHSRUWLQJ
PHFKDQLVPV,Q&7&$(YWKHHYHQWVPD\EHUHSRUWHGDVHLWKHU/HXNHPLDVHFRQGDU\WR
RQFRORJ\FKHPRWKHUDS\0\HORG\VSODVWLFV\QGURPHRU7UHDWPHQWUHODWHGVHFRQGDU\
PDOLJQDQF\

5RXWLQHHYHQWVWKDWGRQRWQHHGWREHUHFRUGHGLQ&'
7KHIROORZLQJ$(GRQRWQHHGWREHUHSRUWHGWR&7(3RUWKH,5%7KH\ZLOOQRWEHUHFRUGHGLQ
&'DVZHOO
/\PSKRSHQLDJUDGHRU
+\SRDOEXPLQHPLDJUDGH

&ROODERUDWLYH$JUHHPHQW
7KHDJHQWVVXSSOLHGE\&7(3'&7'1&,XVHGLQWKLVSURWRFROLVDUHSURYLGHGWRWKH1&,
XQGHUD&ROODERUDWLYH$JUHHPHQW&5$'$&7$&6$EHWZHHQWKH3KDUPDFHXWLFDO
&RPSDQ\LHVKHUHLQDIWHUUHIHUUHGWRDV´&ROODERUDWRUV´DQGWKH1&,'LYLVLRQRI&DQFHU
7UHDWPHQWDQG'LDJQRVLV7KHUHIRUHWKHIROORZLQJREOLJDWLRQVJXLGHOLQHVLQDGGLWLRQWRWKH
SURYLVLRQVLQWKH³,QWHOOHFWXDO3URSHUW\2SWLRQWR&ROODERUDWRU´KWWSFWHSFDQFHUJRYLQGXVWU\
FRQWDLQHGZLWKLQWKHWHUPVRIDZDUGDSSO\WRWKHXVHRIWKH$JHQWVLQWKLVVWXG\

$JHQWVPD\QRWEHXVHGIRUDQ\SXUSRVHRXWVLGHWKHVFRSHRIWKLVSURWRFROQRUFDQ
$JHQWVEHWUDQVIHUUHGRUOLFHQVHGWRDQ\SDUW\QRWSDUWLFLSDWLQJLQWKHFOLQLFDOVWXG\
&ROODERUDWRUVGDWDIRU$JHQWVDUHFRQILGHQWLDODQGSURSULHWDU\WR&ROODERUDWRUVDQG
VKDOOEHPDLQWDLQHGDVVXFKE\WKHLQYHVWLJDWRUV7KHSURWRFROGRFXPHQWVIRUVWXGLHV



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
XWLOL]LQJLQYHVWLJDWLRQDO$JHQWVFRQWDLQFRQILGHQWLDOLQIRUPDWLRQDQGVKRXOGQRWEHVKDUHG
RUGLVWULEXWHGZLWKRXWWKHSHUPLVVLRQRIWKH1&,,IDFRS\RIWKLVSURWRFROLVUHTXHVWHG
E\DSDWLHQWRUSDWLHQW¶VIDPLO\PHPEHUSDUWLFLSDWLQJRQWKHVWXG\WKHLQGLYLGXDOVKRXOG
VLJQDFRQILGHQWLDOLW\DJUHHPHQW$VXLWDEOHPRGHODJUHHPHQWFDQEHGRZQORDGHGIURP
KWWSFWHSFDQFHUJRY

)RUDFOLQLFDOSURWRFROZKHUHWKHUHLVDQLQYHVWLJDWLRQDO$JHQWXVHGLQFRPELQDWLRQZLWK
DQRWKHULQYHVWLJDWLRQDO$JHQWVHDFKWKHVXEMHFWRIGLIIHUHQWFROODERUDWLYHDJUHHPHQWV
WKHDFFHVVWRDQGXVHRIGDWDE\HDFK&ROODERUDWRUVKDOOEHDVIROORZVGDWDSHUWDLQLQJWR
VXFK FRPELQDWLRQXVHVKDOOKHUHLQDIWHUEHUHIHUUHGWRDV0XOWL3DUW\'DWD´
D
1&,ZLOOSURYLGHDOO&ROODERUDWRUVZLWKSULRUZULWWHQQRWLFHUHJDUGLQJWKH
H[LVWHQFHDQGQDWXUHRIDQ\DJUHHPHQWVJRYHUQLQJWKHLUFROODERUDWLRQZLWK1,+
WKHGHVLJQRIWKHSURSRVHGFRPELQDWLRQSURWRFRODQGWKHH[LVWHQFHRIDQ\
REOLJDWLRQVWKDWZRXOGWHQGWRUHVWULFW1&,
VSDUWLFLSDWLRQLQWKHSURSRVHG
FRPELQDWLRQSURWRFRO
E
(DFK&ROODERUDWRUVKDOODJUHHWRSHUPLWXVHRIWKH0XOWL3DUW\'DWDIURPWKH
FOLQLFDOWULDOE\DQ\RWKHU&ROODERUDWRUVROHO\WRWKHH[WHQWQHFHVVDU\WRDOORZVDLG
RWKHU&ROODERUDWRUWRGHYHORSREWDLQUHJXODWRU\DSSURYDORUFRPPHUFLDOL]HLWV
RZQLQYHVWLJDWLRQDO$JHQW
F
$Q\&ROODERUDWRUKDYLQJWKHULJKWWRXVHWKH0XOWL3DUW\'DWDIURPWKHVHWULDOV
PXVWDJUHHLQZULWLQJSULRUWRWKHFRPPHQFHPHQWRIWKHWULDOVWKDWLWZLOOXVHWKH
0XOWL3DUW\'DWDVROHO\IRUGHYHORSPHQWUHJXODWRU\DSSURYDODQG
FRPPHUFLDOL]DWLRQRILWVRZQLQYHVWLJDWLRQDO$JHQW

&OLQLFDO7ULDO'DWDDQG5HVXOWVDQG5DZ'DWDGHYHORSHGXQGHUD&ROODERUDWLYH
$JUHHPHQWZLOOEHPDGHDYDLODEOHH[FOXVLYHO\WR&ROODERUDWRUVWKH1&,DQGWKH)'$
DVDSSURSULDWHDQGXQOHVVDGGLWLRQDOGLVFORVXUHLVUHTXLUHGE\ODZRUFRXUWRUGHU
$GGLWLRQDOO\DOO&OLQLFDO'DWDDQG5HVXOWVDQG5DZ'DWDZLOOEHFROOHFWHGXVHGDQG
GLVFORVHGFRQVLVWHQWZLWKDOODSSOLFDEOHIHGHUDOVWDWXWHVDQGUHJXODWLRQVIRUWKHSURWHFWLRQ
RIKXPDQVXEMHFWVLQFOXGLQJLIDSSOLFDEOHWKH 6WDQGDUGVIRU3ULYDF\RI,QGLYLGXDOO\
,GHQWLILDEOH+HDOWK,QIRUPDWLRQ VHWIRUWKLQ&)53DUW

:KHQD&ROODERUDWRUZLVKHVWRLQLWLDWHDGDWDUHTXHVWWKHUHTXHVWVKRXOGILUVWEHVHQWWR
WKH1&,ZKRZLOOWKHQQRWLI\WKHDSSURSULDWHLQYHVWLJDWRUV*URXS&KDLUIRU&RRSHUDWLYH
*URXSVWXGLHVRU3,IRURWKHUVWXGLHVRI&ROODERUDWRU
VZLVKWRFRQWDFWWKHP

$Q\GDWDSURYLGHGWR&ROODERUDWRUVIRU3KDVHVWXGLHVPXVWEHLQDFFRUGDQFHZLWKWKH
JXLGHOLQHVDQGSROLFLHVRIWKHUHVSRQVLEOH'DWD0RQLWRULQJ&RPPLWWHH'0&LIWKHUHLV
D'0&IRUWKLVFOLQLFDOWULDO

$Q\PDQXVFULSWVUHSRUWLQJWKHUHVXOWVRIWKLVFOLQLFDOWULDOPXVWEHSURYLGHGWR&7(3E\
WKH*URXSRIILFHIRU&RRSHUDWLYH*URXSVWXGLHVRUE\WKHSULQFLSDOLQYHVWLJDWRUIRUQRQ
&RRSHUDWLYH*URXSVWXGLHVIRULPPHGLDWHGHOLYHU\WR&ROODERUDWRUV IRUDGYLVRU\UHYLHZ
DQGFRPPHQWSULRUWRVXEPLVVLRQIRUSXEOLFDWLRQ&ROODERUDWRUVZLOOKDYHGD\VIURP
WKHGDWHRIUHFHLSWIRUUHYLHZ&ROODERUDWRUVKDOOKDYHWKHULJKWWRUHTXHVWWKDWSXEOLFDWLRQ
EHGHOD\HGIRUXSWRDQDGGLWLRQDOGD\VLQRUGHUWRHQVXUHWKDW&ROODERUDWRU¶V
FRQILGHQWLDODQGSURSULHWDU\GDWDLQDGGLWLRQWR&ROODERUDWRUV¶VLQWHOOHFWXDOSURSHUW\
ULJKWVDUHSURWHFWHG&RSLHVRIDEVWUDFWVPXVWEHSURYLGHGWR&7(3IRUIRUZDUGLQJWR
&ROODERUDWRUVIRUFRXUWHV\UHYLHZDVVRRQDVSRVVLEOHDQGSUHIHUDEO\DWOHDVWWKUHH
GD\V SULRUWRVXEPLVVLRQEXWLQDQ\FDVHSULRUWRSUHVHQWDWLRQDWWKHPHHWLQJRU
SXEOLFDWLRQLQWKHSURFHHGLQJV3UHVVUHOHDVHVDQGRWKHUPHGLDSUHVHQWDWLRQVPXVWDOVREH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
IRUZDUGHGWR&7(3SULRUWRUHOHDVH&RSLHVRIDQ\PDQXVFULSWDEVWUDFWDQGRUSUHVV
UHOHDVHPHGLDSUHVHQWDWLRQVKRXOGEHVHQWWR
5HJXODWRU\$IIDLUV%UDQFK&7(3'&7'1&,
([HFXWLYH3OD]D1RUWK6XLWH
%HWKHVGD0DU\ODQG
)$;
(PDLOQFLFWHSSXEV#PDLOQLKJRY
7KH5HJXODWRU\$IIDLUV%UDQFKZLOOWKHQGLVWULEXWHWKHPWR&ROODERUDWRUV1R
SXEOLFDWLRQPDQXVFULSWRURWKHUIRUPRISXEOLFGLVFORVXUHVKDOOFRQWDLQDQ\RI
&ROODERUDWRU¶VFRQILGHQWLDOSURSULHWDU\LQIRUPDWLRQ

3+$50$&(87,&$/$1',19(67,*$7,21$/'(9,&(,1)250$7,21

9DQGHWDQLE

&KHPLFDO,QIRUPDWLRQ
&KHPLFDO1DPH ,83$&1EURPRIOXRURSKHQ\OPHWKR[\>PHWK\O
SLSHULGLQ\OPHWKR[\@TXLQD]ROLQDPLQH
2WKHU1DPHV ='YDQGHWDQLE&$35(/6$
&KHPLFDO6WUXFWXUH
1
1
1
2
2
&+
1
%U
)
+
&+
0ROHFXODU)RUPXOD &+%U)12
0ROHFXODU:HLJKW 

0HFKDQLVPRI$FWLRQ
9DQGHWDQLELVDSRWHQWLQKLELWRURIWKHW\URVLQHNLQDVHDFWLYLW\RINLQDVHLQVHUWGRPDLQFRQWDLQLQJ
UHFHSWRU.'5DQHQGRWKHOLDOFHOOUHFHSWRUIRUYDVFXODUHQGRWKHOLDOJURZWKIDFWRU9(*)DQG
DOVRSRVVHVVHVDFWLYLW\DJDLQVWHSLGHUPDOJURZWKIDFWRUUHFHSWRU(*)59DQGHWDQLELVEHLQJ
GHYHORSHGFOLQLFDOO\IRULWVDQWLDQJLRJHQLFSURSHUWLHVEXWLW DOVRLQKLELWVWKHHQ]\PDWLFDFWLYLW\
RI5(7GHULYHGRQFRSURWHLQVZLWKDQ,& RIQ05(7LQKLELWLRQLVWKHEDVLVIRUWKHXVHRI
YDQGHWDQLELQ07&

6RXUFHRI9DQGHWDQLE
7KLVVWXG\LVILOHGXQGHUWKH&7(3,1'IRUERUWH]RPLEDQGFURVVILOHGWRWKHYDQGHWDQLE
,1'KHOGE\$VWUD=HQHFD$VWUD=HQHFDZLOOVXSSO\YDQGHWDQLEGLUHFWO\WRWKH&OLQLFDO&HQWHU

)RUPXODWLRQRI9DQGHWDQLE
7KHPJWDEOHWVFRQWDLQYDQGHWDQLEFDOFLXPK\GURJHQSKRVSKDWHPLFURFU\VWDOOLQHFHOOXORVH
FURVSRYLGRQHSRYLGRQHDQGPDJQHVLXPVWHDUDWHZLWKDILOPFRDWLQJFRQWDLQLQJ
PHWK\OK\GUR[\SURS\OFHOOXORVHSRO\HWK\OHQHJO\FRODQGWLWDQLXPGLR[LGH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

6WRUDJHDQG6WDELOLW\
7KHWDEOHWVDQGERWWOHVVKRXOGEHVWRUHGDWURRPWHPSHUDWXUHLQWKHRULJLQDOSDFNXQWLOXVH
'RFXPHQWDWLRQLQGLFDWLQJYDQGHWDQLEZDVGHVWUR\HGZLOOEHVHQWWR$VWUD=HQHFD

9DQGHWDQLE$GPLQLVWUDWLRQ
9DQGHWDQLELVDGPLQLVWHUHGRUDOO\RQFHGDLO\FRQWLQXRXVO\9DQGHWDQLEFDQEHWDNHQZLWKRXW
UHJDUGWRIRRG6HHDOVR6HFWLRQIRUPRUHLQIRUPDWLRQ$F\FOHRIYDQGHWDQLELVGHILQHGDV
FRQVHFXWLYHGD\VVWDUWLQJZLWKWKHILUVWGD\RIWUHDWPHQWGD\7UHDWPHQWZLOOEH
DGPLQLVWHUHGLQDQRXWSDWLHQWVHWWLQJ

9DQGHWDQLE7R[LFLW\3URILOH
3HUFHQWDJHRISDWLHQWVZLWKDGYHUVHHYHQWVE\V\VWHPRUJDQFODVVDQGSUHIHUUHGWHUPLQ
YDQGHWDQLEHPHUJLQJVDIHW\SURILOH
(YHQW
&,206
3HUFHQWDJHRISDWLHQWVIURP
VWXG\,/
&DUGLRYDVFXODU
47SURORQJDWLRQ
9HU\FRPPRQ

+\SHUWHQVLRQ
9HU\&RPPRQ

&HQWUDO1HUYRXV6\VWHP
+HDGDFKH
9HU\FRPPRQ

'LJHVWLYH
&RQVWLSDWLRQ
9HU\FRPPRQ

'LDUUKHD
9HU\FRPPRQ

1DXVHD
9HU\FRPPRQ

9RPLWLQJ
&RPPRQ

+HPDWRORJLFDQGO\PSKDWLF
(FFK\PRVLV
8QFRPPRQ

7KURPERF\WRSHQLD
&RPPRQ

,QYHVWLJDWLRQV
(OHYDWHGOLYHUIXQFWLRQWHVWV
&RPPRQ
  
:HLJKWORVV
9HU\FRPPRQ

0HWDEROLF
'HK\GUDWLRQ
&RPPRQ

+\SRNDOHPLD
&RPPRQ

+\SRPDJQHVHPLD
&RPPRQ

+\SRSKRVSKDWHPLD
8QFRPPRQ

6NLQDSSHQGDJHV
5DVKYDULHW\RIWHUPV
9HU\FRPPRQ

5HQDO
3URWHLQXULD
&RPPRQ

5HVSLUDWRU\
,QWHUVWLWLDOOXQJGLVHDVHLQFOXGLQJSQHXPRQLWLV
&RPPRQ

3XOPRQDU\HPEROLVP
&RPPRQ

9DVFXODU
9HQRXVWKURPERHPEROLVP
&RPPRQ

*HQHUDO
$VWKHQLD
&RPPRQ




9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
(YHQW
&,206
3HUFHQWDJHRISDWLHQWVIURP
VWXG\,/
)DWLJXH
9HU\FRPPRQ

7KHYDOXHVUHIOHFWWKHIUHTXHQF\RIHYHQWVDVDUHSRUWHGDGYHUVHHYHQWDQGGRQRWLQFOXGHRXWRIUDQJH
ODERUDWRU\YDOXHVRUDEQRUPDOYLWDOVLJQV7KHHYHQWVRIK\SRSKRVSKDWHPLDDQGHFFK\PRVLVRFFXUUHG
LQSKDVH,VWXGLHVEXWGLGQRWRFFXULQVWXG\,/WKHIUHTXHQF\KDVWKHUHIRUHEHHQVHWDV
7KHHYHQWVRILQWHUVWLWLDOOXQJGLVHDVHSQHXPRQLWLVSXOPRQDU\HPEROLVPDQGYHQRXV
WKURPERHPEROLVPRFFXUUHGLQVWXG\,/EXWWKHVHHYHQWVDUHKHDYLO\FRQIRXQGHGE\
DGYDQFHGFDQFHUSUHYLRXVUDGLDWLRQDQGFKHPRWKHUDS\DQGGLVHDVHSURJUHVVLRQ
&,206&RXQFLOIRU,QWHUQDWLRQDO2UJDQL]DWLRQIRU0HGLFDO6FLHQFHVVXEVHWRI:RUOG+HDOWK
2UJDQL]DWLRQ

%RUWH]RPLE9HOFDGH3616&
&KHPLFDO1DPH
13\UD]LQHFDUERQ\O/SKHQ\ODODQLQH/OHXFLQHERURQLFDFLG
2WKHU1DPHV
0/1/'39HOFDGHERUWH]RPLE
&ODVVLILFDWLRQ
3URWHDVRPH,QKLELWRU
&$65HJLVWU\

0ROHFXODU)RUPXOD &+%12 0:

0HFKDQLVPRIDFWLRQ
%RUWH]RPLELVDUHYHUVLEOHLQKLELWRURIWKHFK\PRWU\SVLQOLNHDFWLYLW\RIWKH6SURWHDVRPHLQ
PDPPDOLDQFHOOV7KH6SURWHDVRPHLVDODUJHSURWHLQFRPSOH[WKDWGHJUDGHVXELTXLWLQDWHG
SURWHLQV7KHXELTXLWLQSURWHDVRPHSDWKZD\SOD\VDQHVVHQWLDOUROHLQUHJXODWLQJWKHLQWUDFHOOXODU
FRQFHQWUDWLRQRIVSHFLILFSURWHLQVWKHUHE\PDLQWDLQLQJKRPHRVWDVLVZLWKLQFHOOV,QKLELWLRQRIWKH
6SURWHDVRPHSUHYHQWVWKLVWDUJHWHGSURWHRO\VLVWKDWFDQDIIHFWPXOWLSOHVLJQDOLQJFDVFDGHV
ZLWKLQWKHFHOO7KLVGLVUXSWLRQRIQRUPDOKRPHRVWDWLFPHFKDQLVPVFDQOHDGWRFHOOGHDWK
([SHULPHQWVKDYHGHPRQVWUDWHGWKDWERUWH]RPLELVF\WRWR[LFWRDYDULHW\RIFDQFHUFHOOW\SHVLQ
YLWUR%RUWH]RPLEFDXVHVDGHOD\LQWXPRUJURZWKLQYLYRLQQRQFOLQLFDOWXPRUPRGHOVLQFOXGLQJ
PXOWLSOHP\HORPD

3KDUPDFRNLQHWLFV
)ROORZLQJLQWUDYHQRXVDGPLQLVWUDWLRQRIPJP GRVHWKHPHGLDQHVWLPDWHGPD[LPXP
SODVPDFRQFHQWUDWLRQRIERUWH]RPLEZDVQJP/UDQJH QJP/LQHLJKWSDWLHQWV
ZLWK00DQGFUHDWLQLQHFOHDUDQFHYDOXHVUDQJLQJIURPP/PLQ7KHPHDQHOLPLQDWLRQ
KDOIOLIHRIERUWH]RPLEDIWHUILUVWGRVHUDQJHGIURPWRKRXUVDWGRVHVUDQJLQJIURPWR
PJP LQSDWLHQWVZLWKDGYDQFHGPDOLJQDQFLHV7KHSKDUPDFRNLQHWLFVRIERUWH]RPLEDVD
VLQJOHDJHQWKDVQRWEHHQIXOO\FKDUDFWHUL]HGDWWKHUHFRPPHQGHGGRVHLQ00SDWLHQWV
'LVWULEXWLRQ 7KHGLVWULEXWLRQYROXPHRIERUWH]RPLEDVDVLQJOHDJHQWZDVQRWDVVHVVHGDWWKH
UHFRPPHQGHGGRVHLQSDWLHQWVZLWK007KHELQGLQJRIERUWH]RPLEWRKXPDQSODVPDSURWHLQV
DYHUDJHGRYHUWKHFRQFHQWUDWLRQUDQJHRIQJP/
0HWDEROLVP,QYLWURVWXGLHVZLWKKXPDQOLYHUPLFURVRPHVDQGKXPDQF'1$H[SUHVVHG
F\WRFKURPH3LVR]\PHVLQGLFDWHWKDWERUWH]RPLELVSULPDULO\R[LGDWLYHO\PHWDEROL]HGYLD
F\WRFKURPH3HQ]\PHV$'&&DQG$7KHPDMRUPHWDEROLFSDWKZD\LV
GHERURQDWLRQWRIRUPWZRGHERURQDWHGPHWDEROLWHVWKDWVXEVHTXHQWO\XQGHUJRK\GUR[\ODWLRQWR
VHYHUDOPHWDEROLWHV'HERURQDWHGERUWH]RPLEPHWDEROLWHVDUHLQDFWLYHDV6SURWHDVRPH
LQKLELWRUV3RROHGSODVPDGDWDIURPSDWLHQWVDWPLQDQGPLQDIWHUGRVLQJLQGLFDWHWKDW
WKHSODVPDOHYHOVRIPHWDEROLWHVDUHORZFRPSDUHGWRWKHSDUHQWGUXJ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
(OLPLQDWLRQ7KHSDWKZD\VRIHOLPLQDWLRQRIERUWH]RPLEKDYHQRWEHHQFKDUDFWHUL]HGLQ
KXPDQV

+RZ6XSSOLHG
%RUWH]RPLELVFRPPHUFLDOO\DYDLODEOHDQGZLOOEHVXSSOLHGWR&7(3E\ 0LOOHQQLXP
3KDUPDFHXWLFDOV,QF6LGQH\6W&DPEULGJH0$3616&
&KHPLFDO1DPH
13\UD]LQHFDUERQ\O/SKHQ\ODODQLQH/OHXFLQHERURQLFDFLG
2WKHU1DPHV
0/1/'39HOFDGHERUWH]RPLE
&ODVVLILFDWLRQ
3URWHDVRPH,QKLELWRU
&$65HJLVWU\

0ROHFXODU)RUPXOD &+%12 0:
+RZ6XSSOLHG
36LVVXSSOLHGE\WKH'&7'1&,DVDPJYLDOIRULQMHFWLRQ(DFK
VWHULOHVLQJOHXVHP/YLDOFRQWDLQV PJ36DVDO\RSKLOL]HG
SRZGHUZLWKPJPDQQLWRO863
3UHSDUDWLRQ
:KHQWKHPJYLDOLVUHFRQVWLWXWHGZLWKP/QRUPDOVDOLQH863HDFK
PLOOLOLWHURIVROXWLRQZLOOFRQWDLQPJRI36DWDS+RIDSSUR[LPDWHO\
WR7KHGUXJLVWREH JLYHQZLWKRXWIXUWKHUGLOXWLRQDVDQ,9EROXVRYHU
VHFRQGV
6WRUDJH
6WRUHLQWDFWYLDOVDWURRPWHPSHUDWXUH3URWHFWIURPOLJKW
6WDELOLW\
6KHOIOLIHVXUYHLOODQFHRIWKHLQWDFWYLDOVLVRQJRLQJ7KHVROXWLRQDV
UHFRQVWLWXWHGLVVWDEOHIRUKRXUVDWURRPWHPSHUDWXUH
&$87,217KHVLQJOHXVHO\RSKLOL]HGGRVDJHIRUPFRQWDLQVQR
DQWLEDFWHULDOSUHVHUYDWLYHV7KHUHIRUHLWLVDGYLVHGWKDWWKHUHFRQVWLWXWHG
SURGXFWEHGLVFDUGHGKRXUVDIWHULQLWLDOHQWU\
$GPLQLVWUDWLRQ5RXWH ,QWUDYHQRXV

%RUWH]RPLEDGPLQLVWUDWLRQ
%RUWH]RPLELVDGPLQLVWHUHGLQWUDYHQRXVO\RQ'D\VDQGRIHDFKF\FOH6HHDOVR6HFWLRQ
IRUPRUHLQIRUPDWLRQ$F\FOHRIERUWH]RPLELVGHILQHGDVFRQVHFXWLYHGD\VVWDUWLQJZLWK
WKHILUVWGD\RIWUHDWPHQWGD\7UHDWPHQWZLOOEHDGPLQLVWHUHGLQDQRXWSDWLHQWVHWWLQJ

%RUWH]RPLEWR[LFLW\SURILOH
6HH&$(35LQVHFWLRQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3

5()(5(1&(6
 'DYLHV/:HOFK+*,QFUHDVLQJLQFLGHQFHRIWK\URLGFDQFHULQWKH8QLWHG6WDWHV
-DPD
 :DUG/&KDQJLQJ LQFLGHQFHRIWK\URLGFDQFHU
 %XUJHVV-57XFNHU3,QFLGHQFHWUHQGVIRUSDSLOODU\WK\URLGFDUFLQRPDDQGWKHLUFRUUHODWLRQ
ZLWKWK\URLGVXUJHU\DQGWK\URLGILQHQHHGOHDVSLUDWHF\WRORJ\7K\URLG
 7UXRQJ75RXJLHU<'XERXUGLHX'HWDO7LPHWUHQGVDQGJHRJUDSKLFYDULDWLRQVIRUWK\URLG
FDQFHULQ1HZ&DOHGRQLDDYHU\KLJKLQFLGHQFHDUHD(XU-&DQFHU3UHY

 >KWWSVHHUFDQFHUJRY@
 6WDWLVWLFVIRU>ZZZFDQFHURUJGRFURRWVWWVWWBDVS@
 0ROH\-)'H%HQHGHWWL0.3DWWHUQVRIQRGDOPHWDVWDVHVLQSDOSDEOHPHGXOODU\WK\URLG
FDUFLQRPDUHFRPPHQGDWLRQVIRUH[WHQWRIQRGHGLVVHFWLRQ$QQ6XUJ
GLVFXVVLRQ
 %UDQGL0/*DJHO5)$QJHOL$HWDO*XLGHOLQHVIRUGLDJQRVLVDQGWKHUDS\RI0(1W\SH
DQGW\SH-&OLQ(QGRFULQRO0HWDE
 0RGLJOLDQL(&RKHQ5&DPSRV-0HWDO3URJQRVWLFIDFWRUVIRUVXUYLYDODQGIRU
ELRFKHPLFDOFXUHLQPHGXOODU\WK\URLGFDUFLQRPDUHVXOWVLQSDWLHQWV7KH*(7&6WXG\
*URXS*URXSHG
HWXGHGHVWXPHXUVDFDOFLWRQLQH&OLQ(QGRFULQRO2[I
 &RKHQ5&DPSRV-06DODXQ&HWDO3UHRSHUDWLYHFDOFLWRQLQOHYHOVDUHSUHGLFWLYHRIWXPRU
VL]HDQGSRVWRSHUDWLYHFDOFLWRQLQQRUPDOL]DWLRQLQPHGXOODU\WK\URLGFDUFLQRPD*URXSH
G
(WXGHVGHV7XPHXUVD&DOFLWRQLQH*(7&-&OLQ(QGRFULQRO0HWDE
 +HVKPDWL+0*KDULE+YDQ+HHUGHQ-$HWDO$GYDQFHVDQGFRQWURYHUVLHVLQWKHGLDJQRVLV
DQGPDQDJHPHQWRIPHGXOODU\WK\URLGFDUFLQRPD$P-0HG
 (OOHQKRUQ-'6KDK-3%UHQQDQ0),PSDFWRIWKHUDSHXWLFUHJLRQDOO\PSKQRGHGLVVHFWLRQ
IRUPHGXOODU\FDUFLQRPDRIWKHWK\URLGJODQG6XUJHU\GLVFXVVLRQ

 /DNKDQL97<RX<1:HOOV6$7KH0XOWLSOH(QGRFULQH1HRSODVLD6\QGURPHV$QQX5HY
0HG 
 &KLHIDUL(5XVVR'*LXIIULGD'=DPSD*$0HULQJROR'$UWXUL)&KLRGLQL,%LDQFKL'
$WWDUG07ULVFKLWWD9%UXQR5*LDQQDVLR33RQWHFRUYL$)LOHWWL6$QDO\VLVRI5(7
SURWRRQFRJHQHDEQRUPDOLWLHVLQSDWLHQWVZLWK0(1$0(1%IDPLOLDORUVSRUDGLF
PHGXOODU\WK\URLGFDUFLQRPD-(QGRFULQRO,QYHVW
 (QJ&&OD\WRQ'6FKXIIHQHFNHU,/HQRLU*&RWH**DJHO5)YDQ$PVWHO+./LSV&-
1LVKLVKR,7DNDL6,0DUVK'-5RELQVRQ%*)UDQN5DXH.5DXH);XH)1ROO::
5RPHL&3DFLQL))LQN01LHGHUOH%=HGHQLXV-1RUGHQVNMROG0.RPPLQRWK3+HQG\
*10XOOLJDQ/0HWDO7KHUHODWLRQVKLSEHWZHHQVSHFLILF5(7SURWRRQFRJHQHPXWDWLRQV
DQGGLVHDVHSKHQRW\SHLQPXOWLSOHHQGRFULQHQHRSODVLDW\SH,QWHUQDWLRQDO5(7PXWDWLRQ
FRQVRUWLXPDQDO\VLV-$0$
 3HF]NRZVND0-DQXV]HZLF]$0XOWLSOHHQGRFULQHQHRSODVLDW\SH)DP&DQFHU

 *XMUDO766LQJK9.-LD=0XOOLJDQ/00ROHFXODUPHFKDQLVPVRI5(7UHFHSWRUPHGLDWHG
RQFRJHQHVLVLQPXOWLSOHHQGRFULQHQHRSODVLD%&DQFHU5HV
 6NLQQHU0$0DQDJHPHQWRIKHUHGLWDU\WK\URLGFDQFHULQFKLOGUHQ6XUJ2QFRO




9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 .LPXUD(71LNLIRURYD01=KX=HWDO+LJKSUHYDOHQFHRI%5$)PXWDWLRQVLQWK\URLG
FDQFHUJHQHWLFHYLGHQFHIRUFRQVWLWXWLYHDFWLYDWLRQRIWKH5(737&5$6%5$)VLJQDOLQJ
SDWKZD\LQSDSLOODU\WK\URLGFDUFLQRPD&DQFHU5HV
 *ULHFR06DQWRUR0%HUOLQJLHUL07HWDO37&LVDQRYHOUHDUUDQJHGIRUPRIWKHUHWSURWR
RQFRJHQHDQGLVIUHTXHQWO\GHWHFWHGLQYLYRLQKXPDQWK\URLGSDSLOODU\FDUFLQRPDV&HOO

 3LHURWWL0$%RQJDU]RQH,%RUHOOR0*HWDO&\WRJHQHWLFVDQGPROHFXODUJHQHWLFVRI
FDUFLQRPDVDULVLQJIURPWK\URLGHSLWKHOLDOIROOLFXODUFHOOV*HQHV&KURPRVRPHV&DQFHU

 &LDPSL5.QDXI-$.HUOHU5HWDO2QFRJHQLF$.$3%5$)IXVLRQLVDQRYHOPHFKDQLVP
RI0$3.SDWKZD\DFWLYDWLRQLQWK\URLGFDQFHU-&OLQ,QYHVW
 .UROO7*6DUUDI33HFFLDULQL/HWDO3$;33$5JDPPDIXVLRQRQFRJHQHLQKXPDQ
WK\URLGFDUFLQRPD>FRUUHFWHG@6FLHQFH
 1LNLIRURYD01/\QFK5$%LGGLQJHU3:HWDO5$6SRLQWPXWDWLRQVDQG3$;33$5
JDPPDUHDUUDQJHPHQWLQWK\URLGWXPRUVHYLGHQFHIRUGLVWLQFWPROHFXODUSDWKZD\VLQWK\URLG
IROOLFXODUFDUFLQRPD-&OLQ(QGRFULQRO0HWDE
 (OOHQKRUQ-'6KDK-3%UHQQDQ0),PSDFWRIWKHUDSHXWLFUHJLRQDOO\PSKQRGHGLVVHFWLRQ
IRUPHGXOODU\FDUFLQRPDRIWKHWK\URLGJODQG 6XUJHU\GLVFXVVLRQ

 0ROH\-)'HEHQHGHWWL0.'LOOH\:*HWDO6XUJLFDOPDQDJHPHQWRISDWLHQWVZLWK
SHUVLVWHQWRUUHFXUUHQWPHGXOODU\WK\URLGFDQFHU-,QWHUQ0HG
 'UDOOH+/\PSKQRGHGLVVHFWLRQDQGPHGXOODU\WK\URLGFDUFLQRPD%U-6XUJ

 6NLQQHU0$0ROH\-$'LOOH\:*HWDO3URSK\ODFWLFWK\URLGHFWRP\LQPXOWLSOHHQGRFULQH
QHRSODVLDW\SH$1(QJO-0HG
 0XOOLJDQ/00DUVK'-5RELQVRQ%*HWDO,QWHUQDWLRQDO5(70XWDWLRQ&RQVRUWLXP
*HQRW\SHSKHQRW\SHFRUUHODWLRQLQPXOWLSOHHQGRFULQHQHRSODVLDW\SHUHSRUWRIWKH
,QWHUQDWLRQDO5(70XWDWLRQ&RQVRUWLXP-,QWHUQ0HG 
 &DUOVRQ.0'RX6&KL'HWDO6LQJOH0LVVHQVH0XWDWLRQLQWKH7\URVLQH.LQDVH
&DWDO\WLF'RPDLQRIWKH5(73URWRRQFRJHQHLV$VVRFLDWHGZLWK0XOWLSOH(QGRFULQH
1HRSODVLD7\SH%3URF1DW$FDG6FL 
 *ULPP20DUVK'-$QGUHZ6'HWDO*HUPOLQHGLQXFOHRWLGHPXWDWLRQLQFRGRQRIWKH
5(7SURWRRQFRJHQHLQPXOWLSOHHQGRFULQHQHRSODVLDW\SH%ZLWKRXWFRGRQPXWDWLRQ-
&OLQ(QGRFULQRO0HWDE 
 )UDQN5DXH.+RHSQHU:)ULOOLQJ$HWDO*07&6*URXS0XWDWLRQVRIWKH5(7
SURWRRQFRJHQHLQ*HUPDQ0(1IDPLOLHVUHODWLRQEHWZHHQJHQRW\SHDQGSKHQRW\SH-&OLQ
(QGRFULQRO0HWDE 
 6FKHUXEO+5DXH)=LHJOHU5&RPELQDWLRQFKHPRWKHUDS\RIDGYDQFHGPHGXOODU\DQG
GLIIHUHQWLDWHGWK\URLGFDQFHU3KDVH,,VWXG\-&DQFHU5HV&OLQ2QFRO
 2UODQGL)&DUDFL3%HUUXWL$HWDO&KHPRWKHUDS\ZLWKGDFDUED]LQHDQGIOXRURXUDFLOLQ
DGYDQFHGPHGXOODU\WK\URLGFDQFHU$QQ2QFRO
 :X/7$YHUEXFK6'%DOO':HWDO7UHDWPHQWRIDGYDQFHGPHGXOODU\WK\URLGFDUFLQRPD
ZLWKDFRPELQDWLRQRIF\FORSKRVSKDPLGHYLQFULVWLQHDQGGDFDUED]LQH&DQFHU




9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 6FKOXPEHUJHU0$EGHOPRXPHQH1'HOLVOH0-HWDO7UHDWPHQWRIDGYDQFHGPHGXOODU\
WK\URLGFDQFHUZLWKDQDOWHUQDWLQJFRPELQDWLRQRI)8VWUHSWR]RFLQDQG)8GDFDUED]LQH
7KH*URXSHG
(WXGHGHV7XPHXUVD&DOFLWRQLQH*(7&%U-&DQFHU
 'L%DUWRORPHR0%DMHWWD(%RFKLFFKLR$0HWDO$SKDVH,,WULDORIGDFDUED]LQH
IOXRURXUDFLODQGHSLUXELFLQLQSDWLHQWVZLWKQHXURHQGRFULQHWXPRXUV$VWXG\E\WKH,WDOLDQ
7ULDOVLQ0HGLFDO2QFRORJ\,702*URXS$QQ2QFRO 
 %DMHWWD()HUUDUL/3URFRSLR*HWDO(IILFDF\RIDFKHPRWKHUDS\FRPELQDWLRQIRUWKH
WUHDWPHQWRIPHWDVWDWLFQHXURHQGRFULQHWXPRXUV$QQ2QFRO
 3HWXUVVRQ650HWDVWDWLFPHGXOODU\WK\URLGFDUFLQRPD&RPSOHWHUHVSRQVHWRFRPELQDWLRQ
FKHPRWKHUDS\ZLWKGDFDUED]LQHDQGIOXRURXUDFLO&DQFHU
 %ULHUO\-' 7VDQJ5: ([WHUQDOUDGLDWLRQWKHUDS\RIPHGXOODU\WK\URLGFDQFHU ,Q
:DUWRIVN\/9DQ1RVWUDQG ' HG 7K\URLGFDQFHUDFRPSUHKHQVLYHJXLGHWRFOLQLFDO
PDQDJHPHQW +XPDQD7RWRZD1-
 *DJHO5)7DVKMLDQ$+-U&XPPLQJV73DSDWKDQDVRSRXORV1.DSODQ00'H/HOOLV5$
:ROIH+-5HLFKOLQ67KHFOLQLFDORXWFRPHRISURVSHFWLYHVFUHHQLQJIRUPXOWLSOHHQGRFULQH
QHRSODVLDW\SHD$Q\HDUH[SHULHQFH1(QJO-0HG 
 3DFLQL))RQWDQHOOL0)XJD]]ROD/(OLVHL55RPHL&'L&RVFLR*0LFFROL33LQFKHUD$
5RXWLQHPHDVXUHPHQWRIVHUXPFDOFLWRQLQLQQRGXODUWK\URLGGLVHDVHVDOORZVWKHSUHRSHUDWLYH
GLDJQRVLVRIXQVXVSHFWHGVSRUDGLFPHGXOODU\WK\URLGFDUFLQRPD-&OLQ(QGRFULQRO0HWDE

 &RKHQ5&DPSRV-06DODXQ&+HVKPDWL+0.UDLPSV-/3UR\H&6DUIDWL(+HQU\-)
1LFFROL6LUH30RGLJOLDQL(3UHRSHUDWLYHFDOFLWRQLQOHYHOVDUHSUHGLFWLYHRIWXPRUVL]HDQG
SRVWRSHUDWLYHFDOFLWRQLQQRUPDOL]DWLRQLQPHGXOODU\WK\URLGFDUFLQRPD*URXSHG
(WXGHVGHV
7XPHXUVD&DOFLWRQLQH*(7&-&OLQ(QGRFULQRO0HWDE
 +LUVFK3)%DUXFK+,VFDOFLWRQLQDQLPSRUWDQWSK\VLRORJLFDOVXEVWDQFH"(QGRFULQH

 )LQGOD\'06H[WRQ30&DOFLWRQLQ*URZWK)DFWRUV 
 5HDVEHFN3*%XUQV606KXONHV$&DOFLWRQLQJHQHUHODWHGSHSWLGHHQWHULFDQG
FDUGLRYDVFXODUHIIHFWVLQWKHGRJ*DVWURHQWHURORJ\ 
 &DUORPDJQR) 9LWDJOLDQR'*XLGD7&LDUGLHOOR)7RUWRUD*9HFFKLR*5\DQ$-
)RQWDQLQL*)XVFR$6DQWRUR0='DQRUDOO\DYDLODEOHLQKLELWRURI.'5W\URVLQH
NLQDVHDFWLYLW\HIILFLHQWO\EORFNVRQFRJHQLF5(7NLQDVHV&DQFHU5HV 
 :HGJH652JLOYLH'-'XNHV0.HQGUHZ-&KHVWHU5-DFNVRQ-$%RIIH\6-9DOHQWLQH
3-&XUZHQ-20XVJURYH+/*UDKDP*$+XJKHV*'7KRPDV$36WRNHV(6&XUU\%
5LFKPRQG*+:DGVZRUWK3)%LJOH\$/+HQQHTXLQ/)='LQKLELWVYDVFXODU
HQGRWKHOLDOJURZWKIDFWRUVLJQDOLQJDQJLRJHQHVLVDQGWXPRUJURZWKIROORZLQJRUDO
DGPLQLVWUDWLRQ&DQFHU5HV 
 9LGDO0:HOOV65\DQ$&DJDQ5='VXSSUHVVHVRQFRJHQLF5(7LVRIRUPVLQD
'URVRSKLODPRGHOIRUW\SHPXOWLSOHHQGRFULQHQHRSODVLDV\QGURPHVDQGSDSLOODU\WK\URLG
FDUFLQRPD&DQFHU5HV 
 +HUEVW56+H\PDFK-92
5HLOO\062QQ$5\DQ$-9DQGHWDQLE='DQRUDOO\
DYDLODEOHUHFHSWRUW\URVLQHNLQDVHLQKLELWRUWKDWVHOHFWLYHO\WDUJHWVSDWKZD\VFULWLFDOIRUWXPRU
JURZWKDQGDQJLRJHQHVLV([SHUW2SLQ,QYHVWLJ'UXJV 
 5\DQ$-:HGJH65='DQRYHOLQKLELWRURI9(*)5DQG(*)5W\URVLQHNLQDVH
DFWLYLW\%U-&DQFHU 6XSSO6



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 &KHFNOH\'7HVVLHU--.HQGUHZ-:DWHUWRQ-&:HGJH658VHRIG\QDPLFFRQWUDVW
HQKDQFHG05,WRHYDOXDWHDFXWHWUHDWPHQWZLWK='D9(*)VLJQDOOLQJLQKLELWRULQ3&
SURVWDWHWXPRXUV%U-&DQFHU 
 +ROGHQ61(FNKDUGW6*%DVVHU5GH%RHU55LVFKLQ'*UHHQ05RVHQWKDO0$
:KHHOHU&%DUJH$+XUZLW]+,&OLQLFDOHYDOXDWLRQRI='DQRUDOO\DFWLYHLQKLELWRURI
9(*)DQG(*)UHFHSWRUVLJQDOLQJLQSDWLHQWVZLWKVROLGPDOLJQDQWWXPRUV$QQ2QFRO

 7DPXUD70LQDPL+<DPDGD<<DPDPRWR16KLPR\DPD70XUDNDPL++RULLNH$
)XMLVDND<6KLQNDL77DKDUD0.DZDGD.(EL+6DVDNL<-LDQJ+6DLMR1$SKDVH,
GRVHHVFDODWLRQVWXG\RI='LQ-DSDQHVHSDWLHQWVZLWKVROLGPDOLJQDQWWXPRUV-
7KRUDFLF2QFRO 
 1DWDOH5%%RGNLQ'*RYLQGDQ56OHFNPDQ%5L]YL1&DSR$*HUPRQSUH36WRFNPDQ
3.HQQHG\65DQVRQ0='YHUVXVJHILWLQLELQSDWLHQWVZLWKDGYDQFHG16&/&)LQDO
UHVXOWVIURPDWZRSDUWGRXEOHEOLQGUDQGRPL]HGSKDVH,,WULDO3URF$P6RF&OLQ2QFRO
$EVWU
 :HOOVHWDO$SKDVH,,WULDORI='LQSDWLHQWVZLWKKHUHGLWDU\PHWDVWDWLFPHGXOODU\
WK\URLGFDQFHU3URFHHGLQJVRI$6&2$EVWUDFW1R
 %DUGDJ*RUFH)/L-)UHQFK%$)UHQFK6:(WKDQROZLWKGUDZDOLQGXFHG&<3(
GHJUDGDWLRQLQYLYREORFNHGE\SURWHDVRPDOLQKLELWRU36)UHH5DGLF%LRO0HG 

 5LFKDUG,)LVKHU6WHYHQ+%HUQVWHLQ%UDG6.DKO%HQMDPLQ'MXOEHJRYLF0LFKDHO-
5REHUWVRQ6YHQGH9RV(OOLRW(SQHU$PULWD.ULVKQDQ-RKQ3/HRQDUG6DJDU/RQLDO
(GZDUG$6WDGWPDXHU2ZHQ$2
&RQQRU+RQJOLDQJ6KL $QWKRQ\/%RUDO$QGUp*R\
0XOWLFHQWHU3KDVH,,6WXG\RI%RUWH]RPLELQ3DWLHQWV:LWK5HODSVHGRU5HIUDFWRU\0DQWOH
&HOO/\PSKRPD-RXUQDORI&OLQLFDO2QFRORJ\ 
 0D0DQGUHNDUHWDO$SKDVH,DQGSKDUPDFRORJLFVWXG\RIVHTXHQFHVRIWKHSURWHDVRPH
LQKLELWRUERUWH]RPLE369HOFDGHLQFRPELQDWLRQZLWKSDFOLWD[HODQGFDUERSODWLQLQ
SDWLHQWVZLWKDGYDQFHGPDOLJQDQFLHV&DQFHU&KHPRWKHU3KDUPDFRO 
 $OEHUWV)RVWHUHWDO36DQGJHPFLWDELQHLQSDWLHQWVZLWKPHWDVWDWLFSDQFUHDWLF
DGHQRFDUFLQRPDD1RUWK&HQWUDO&DQFHU7UHDWPHQW*URXS1&&7*UDQGRPL]HGSKDVH,,
VWXG\$QQ2QFRO 
 '\7KRPDVHWDO$SKDVH,DQGSKDUPDFRORJLFWULDORIWZRVFKHGXOHVRIWKHSURWHDVRPH
LQKLELWRU36ERUWH]RPLE9HOFDGHLQSDWLHQWVZLWKDGYDQFHGFDQFHU&OLQ&DQFHU5HV

 /XGZLJ.HVVOHUHWDO1XFOHDUIDFWRU^NDSSD`%LQFRQVWLWXWLYHO\DFWLYHLQ&FHOOFDUFLQRPD
DQGUHTXLUHGIRU5(7LQGXFHGWUDQVIRUPDWLRQ&DQFHU5HV 
 0LWVLDGHV0F0LOOLQHWDO$QWLWXPRUHIIHFWVRIWKHSURWHDVRPHLQKLELWRUERUWH]RPLELQ
PHGXOODU\DQGDQDSODVWLFWK\URLGFDUFLQRPDFHOOVLQYLWUR-&OLQ(QGRFULQRO0HWDE 

 3RUXFK\QVN\066DFNHWW'/5REH\5::DUG<$QQXQ]LDWD&)RMR73URWHDVRPH
LQKLELWRUVLQFUHDVHWXEXOLQSRO\PHUL]DWLRQDQGVWDELOL]DWLRQLQWLVVXHFXOWXUHFHOOVDSRVVLEOH
PHFKDQLVPFRQWULEXWLQJWRSHULSKHUDOQHXURSDWK\DQGFHOOXODUWR[LFLW\IROORZLQJSURWHDVRPH
LQKLELWLRQ&HOO&\FOH 
 +H\PDFK-RKQVRQHWDO5DQGRPL]HG3ODFHER&RQWUROOHG3KDVH,,6WXG\RI9DQGHWDQLE
3OXV'RFHWD[HOLQ3UHYLRXVO\7UHDWHG1RQ±6PDOO&HOO/XQJ&DQFHU-&OLQ2QFRO




9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 *UHFR6SLJHOHWDO$6&2$QQXDO0HHWLQJ3URFHHGLQJV3DUW 9RO1R6

 9RRUWPDQ6PLW HWDO$SDUDOOHOGRVHHVFDODWLRQVWXG\RIZHHNO\DQGWZLFHZHHNO\
ERUWH]RPLELQFRPELQDWLRQZLWKJHPFLWDELQHDQGFLVSODWLQLQWKHILUVWOLQHWUHDWPHQWRI
SDWLHQWVZLWKDGYDQFHGVROLGWXPRUV&OLQ&DQFHU5HV
 'DYLHV+RHWDO3KDVH,VWXG\RIWZRGLIIHUHQWVFKHGXOHVRIERUWH]RPLEDQGSHPHWUH[HGLQ
DGYDQFHGVROLGWXPRUVZLWKHPSKDVLVRQ16&/&-7KRUDFLF2QFRORJ\
 &RQQRU+DPOLQHWDO-&OLQ2QFRO$6&2$QQXDO0HHWLQJ3URFHHGLQJV3RVW0HHWLQJ
(GLWLRQ9RO1R6-XQH6XSSOHPHQW 
 6PLWK53.HQQHG\65REHUWVRQ-6DQGDOO'2OLYHU57KHHIIHFWRIIRRGRQWKHLQWUD
VXEMHFWYDULDELOLW\RIWKHSKDUPDFRNLQHWLFVRI='DQRYHODQWLDQJLRJHQLFDJHQWLQ
KHDOWK\VXEMHFWV3URF$P6RF&OLQ2QFRO 
 :HOOV6DPXHOHWDO 9DQGHWDQLE9$1LQORFDOO\DGYDQFHGRUPHWDVWDWLFPHGXOODU\WK\URLG
FDQFHU07&$UDQGRPL]HGGRXEOHEOLQGSKDVH,,,WULDO=(7$ -&OLQ2QFRO V
VXSSODEVWU




$SSHQGL[$/DERUDWRU\0HWKRGRORJ\
6FUHHQLQJIRU5(7PXWDWLRQV
5(7 PXWDWLRQVZLOOEHVFUHHQHGDFFRUGLQJWRDSURWRFROGHVFULEHGUHFHQWO\IRU(*)5 -L+=KDR
; <X]D<HWDO(SLGHUPDOJURZWKIDFWRUUHFHSWRUYDULDQW,,,PXWDWLRQVLQOXQJWXPRULJHQHVLV
DQGVHQVLWLYLW\WRW\URVLQHNLQDVHLQKLELWRUV3URF1DWO$FDG6FL86$±
%ULHIO\F'1$LVDPSOLILHGE\3&5ZLWKSULPHUVVSDQQLQJ H[RQVDQG DIWHUZKLFK
3&5SURGXFWVDUHVHSDUDWHGLQD SRO\DFU\ODPLGHJHODQGYLVXDOL]HGE\HWKLGLXPEURPLGH
VWDLQLQJ 3&5SURGXFWLVWUHDWHGZLWK VKULPSDONDOLQHSKRVSKDWDVH5RFKH'LDJQRVWLFV
&RUSRUDWLRQ DQGH[RQXFOHDVH,86%LRFKHPLFDO&RUSWRUHPRYHH[FHVV GHR[\QXFOHRWLGH
WULSKRVSKDWHVDQGSULPHUVIROORZHGE\VHTXHQFLQJ RQWKH$%,;/JHQHWLFDQDO\]HUXVLQJ
$%,%LJ'\H7HUPLQDWRU YVHTXHQFLQJNLW
'HWHUPLQDWLRQRIWKH/HYHOVRI0RGLILHG7XEXOLQ
3URWHLQVLVRODWHGDVDERYHDUHORDGHGRQJHOVDQG:HVWHUQEORWVSUREHGZLWKDQWLERGLHVVSHFLILF
IRUWRWDODWXEXOLQJOXWHUPLQDWHGRUDFHW\ODWHGDWXEXOLQ$OWHUQDWHO\IUHVKSDWLHQWFRUHELRSVLHV
DUH'RXQFHKRPRJHQL]HGDW&LQK\SRWRQLFO\VLVEXIIHU>P00J&OP0(*7$
1RQLGHW3P07ULV+&OS+FRQWDLQLQJSURWHDVHLQKLELWRUV@DQGYRUWH[HGYLJRURXVO\
7KHO\VDWHVDUHWKHQVRQLFDWHGWRFODULW\SULRUWR FHQWULIXJDWLRQIRUPLQDWUSPUHPRYLQJ
XQO\VHGGHEULV 7RWDOSURWHLQFRQFHQWUDWLRQVLQWKHO\VDWHVDUHGHWHUPLQHGXVLQJWKH%LRUDGDVVD\
DQGHTXDODPRXQWVRISURWHLQDUHORDGHGRQ6'63$*(JHOVIRUHDFKSDLURISUH DQGSRVW
WUHDWPHQWVDPSOHV7KHZHVWHUQEORWVDUHVHTXHQWLDOO\SUREHGZLWKDQWLERGLHVWRWRWDODQG
PRGLILHGDWXEXOLQVDQGZLWKDQDQWLERG\WRDFWLQWKHODWWHUDVDORDGLQJFRQWUROIRUHDFKSDLU
DQGYLVXDOL]HGXVLQJ(&/DQGGHQVLWRPHWU\RUVLPXOWDQHRXVO\SUREHGZLWKDQWLERGLHVDQG
YLVXDOL]HGXVLQJWKH2G\VVH\WHFKQRORJ\,WLVH[SHFWHGWKDWSRVWWUHDWPHQWELRSVLHVZLOOEH
REWDLQHGDQ\ZKHUHIURPWRKRXUVDIWHUWKHERUWH]RPLEGRVH,QSUDFWLFDOWHUPVFOLQLFDOO\WKLV
ZDVWKHEHVWWKDWFDQEHGRQHEXWLWLVIHOWWKDWWKLVLVQRWDGHWULPHQWVLQFHWKHLQYLWUR VWXGLHV
KDYHVKRZQWKDWWKHERUWH]RPLEHIIHFWRQPLFURWXEXOHVLVVWDEOHORQJDIWHULWVUHPRYDO7KH
YDULDEOHVRIZKHQWKHGRVHLVJLYHQRQWKHZDUGRURXWSDWLHQWFOLQLFDQGZKHQWKHVORWEHFRPHV
DYDLODEOHLQWKHUDGLRORJ\VXLWHUHVXOWVLQDUDQJHRIWLPHV
:HVWHUQEORWWLQJWRGHWHFW5(7LQKLELWLRQ
7XPRUWLVVXHVDUHKRPRJHQL]HGDW&IRUVLQ YROXPHVRIO\VLVEXIIHUXVLQJDQ8OWUD
7XUUD[0RGHO77KH O\VLVEXIIHUFRQVLVWVRIPPRO/RI7ULV+&OS+ PPRO/RI
(*7$7ULWRQ;PPRO/RI1D&OPPRO/ RI306)ȝJP/RIDSURWLQLQ
ȝJP/RIOHXSHSWLQ DQGȝPRO/RIVRGLXPRUWKRYDQDGDWH)ROORZLQJPLQ RILQFXEDWLRQ
RQLFHWKHO\VDWHVDUHFOHDUHGE\FHQWULIXJDWLRQ DQGWKHVXSHUQDWDQWFROOHFWHGDQGVWRUHGDW±
& %HIRUHIUHH]LQJDVDPSOHDOLTXRWLVGLOXWHGDWLQ ZDWHUIRUGHWHUPLQDWLRQRIWKH
SURWHLQFRQFHQWUDWLRQZLWKD FRPPHUFLDOO\DYDLODEOHSURWHLQDVVD\NLWXVLQJERYLQHVHUXP
DOEXPLQDVVWDQGDUG3LHUFH6L[W\PLFURJUDPVRIHDFKVDPSOHDUHVHSDUDWHGE\6'63$*(DQG
EORWWHGRQWRSRO\YLQ\OLGHQHGLIOXRULGHRUQLWURFHOOXORVHPHPEUDQH $PHUVKDP%LRVFLHQFHV7KH
IROORZLQJSULPDU\DQWLERGLHVFDQEHXVHG XVHGSRO\FORQDOUDEELWDQWL5(7& 6DQWD&UX]
%LRWHFKQRORJ\DQGDQWLS5(7&HOO 6LJQDOLQJ7KHDQWLJHQDQWLERG\FRPSOH[HVDUH
YLVXDOL]HGXVLQJ KRUVHUDGLVKSHUR[LGDVH±FRQMXJDWHGDQWLPRXVHRUUDEELW ,J*DQWLERG\6DQWD
&UX]%LRWHFKQRORJ\DQGHQKDQFHGFKHPLOXPLQHVFHQFH V\VWHP$PHUVKDP%LRVFLHQFHV7KH
PHPEUDQHFDQEHVWULSSHGXVLQJ D5HVWRUH:HVWHUQEORW6WULSSLQJ%XIIHU3LHUFHDQGUHSUREHG


9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
VHYHUDOWLPHV)RUTXDQWLWDWLRQJHOLPDJHVZHUHFDSWXUHGXVLQJWKH2G\VVH\LPDJHFDSWXUH
V\VWHPDQGWKHDFFRPSDQ\LQJLPDJHDQDO\VLVVRIWZDUH,QDGGLWLRQZHZLOODOVRPRQLWRUKH
SKRVSKRU\ODWLRQVWDWXVRIYDULRXVSURWHLQVGRZQVWUHDP5(7LQFOXGLQJ0$3.(5.DQG6KF
7KLVZLOOEHDFKLHYHGE\LPPXQREORWZLWKFRPPHUFLDOO\DYDLODEOHSKRVSKRVSHFLILFDQWLERGLHV
+RZHYHUWKHODWWHUDORQHZLOOQRWEHFRQVLGHUHGVXIILFLHQWHYLGHQFHIRU5(7LQKLELWLRQVLQFH
WKH\DUHGRZQVWUHDPRIRWKHUYDQGHWDQLELQKLELWDEOHWDUJHWVLQFOXGLQJ9(*)5DQG(*)5
,PPXQRKLVWRFKHPLVWU\IRU5(7(*)0$3.DQG9(*)5
$VVHVVWKHH[SUHVVLRQDQGDFWLYDWLRQRI5(7(*)50$3.DQG9(*)5E\
LPPXQRKLVWRFKHPLVWU\ZLWKFRPPHUFLDOO\DYDLODEOHSKRVSKRVSHFLILFDQWLERGLHV DQGDQWLERGLHV
DJDLQVWXQPRGLILHGSURWHLQV7KLVZLOOH[DPLQHWLVVXHREWDLQHGSULRUWRRUDWWKHWLPHRI
HQUROOPHQWRQWKLVSURWRFRODQGZLOOH[DPLQHWKHFRUUHODWLRQEHWZHHQH[SUHVVLRQRIWKHVH
SURWHLQVDQGUHVSRQVHWRWKHUDS\ 127(:HKDYHQRW\HWKDGH[SHULHQFHZLWKWKH5(7
DQWLERGLHVDQGZLOOPDNHVXUHZHFDQSHUIRUPWKLVEHIRUHVXEPLWWLQJWKHILQDOYHUVLRQRIWKH
SURWRFRO
3KDUPDFRNLQHWLFVRIERUWH]RPLE
7KHVHVDPSOHVZLOOEHREWDLQHGGXULQJ&\FOH'D\DQG&\FOH'D\POVDPSOHVZLOOEH
REWDLQHGLQKHSDULQL]HGWXEHVJUHHQWRSDQGSODFHGRQLFHDWWLPHSUHGRVHWKHQ
DQGKUDIWHUWKHLQIXVLRQVWDUWWLPH6DPSOHVZLOOEHGHOLYHUHGWRWKHODERUDWRU\RI'U'RXJ
)LJJ$ZKHUHWKH\ZLOOEHVHSDUDWHGE\FHQWULIXJDWLRQDQGWKHQSODVPDDOLTXRWVIUR]HQDQG
VWRUHGXQWLOEDWFKDQDO\VLV
3KDUPDFRNLQHWLFVRIYDQGHWDQLE
7KHVHVDPSOHVZLOOEHREWDLQHGGXULQJ&\FOHRQ'D\VGD\VDQG2Q'D\PO
VDPSOHVZLOOEHREWDLQHGLQKHSDULQL]HGWXEHVJUHHQWRSDQGSODFHGRQLFHDWWLPHSUHGRVH
WKHQKRXUVDQGKRXUVDIWHUWKHRUDOGRVHLVWDNHQ2Q'D\DVLQJOHVDPSOH
POJUHHQWRSZLOOEHREWDLQHGKRXUVDIWHUWKHSUHYLRXVGD\¶VGRVHDQGSULRUWRWKH'D\
GRVHDVDWURXJKOHYHO$OOWKHVHVDPSOHVZLOOEHSODFHGRQLFHDQGGHOLYHUHGWRWKHODERUDWRU\RI
'RXJ)LJJ5P$IRUSURFHVVLQJ2QFHUHFHLYHGWKHVDPSOHVZLOOEHVHSDUDWHGE\
FHQWULJXDWLRQSODVPDDOLTXRWVIUR]HQDQGWKHQEDWFKPDLOLQJRIIUR]HQVDPSOHVWR$VWUD=HQHFD
IRUDQDO\VLV
6WRUDJH7UDFNLQJDQG+DQGOLQJRI5HVHDUFK6SHFLPHQV
6SHFLPHQVZLOOEHGLVWULEXWHGWRWKHIROORZLQJODEVIRUDVVD\
x
6OLGHVIURPDUFKLYDOWLVVXHVEORFNVZLOOEHUHTXHVWHGIURPHDFKSDWLHQW¶VUHIHUULQJPHGLFDO
WHDP7KHVHVOLGHVZLOOEHWUDQVIHUUHGWR'U0DULD0HULQR1HXPDQQLQWKH/DERUDWRU\RI
3DWKRORJ\IRULPPXQRKLVWRFKHPLFDOVWDLQLQJ5(79(*)5(*)5VRPDWRVWDWLQUHFHSWRU
6WDLQHGVOLGHVZKLFKZLOOEHODEHOHGZLWKWKHSDWLHQWVVWXG\QXPEHUZLOOEHVWRUHGLQWKH/DE
RI3DWKRORJ\XQWLOWKHWULDOLVFRPSOHWHG,IXQVWDLQHGVOLGHVDUHDYDLODEOHDIWHUSODQQHG
VWXGLHVDUHFRPSOHWHGWKHVHPD\EHXVHGIRUIXWXUHUHVHDUFKDIWHUJHWWLQJDQH[HPSWLRQIRUP
2+65RUDSSURYDOIURPWKH,5%
x
6QDSIUR]HQELRSV\VSHFLPHQVZLOOEHWUDQVIHUUHGWR'U'RXJ)LJJ¶VODERUDWRU\IRUFRGLQJ
DQGVWRUDJHDQGPD\EHSURFHVVHGLQ'U7LWR)RMR¶VODERUDWRU\LIWKHLQWHQWLVWRHVWLPDWHWKH
H[WHQWRIWXEXOLQSRO\PHUL]DWLRQ$VQDSIUR]HQELRSV\VSHFLPHQDQGDEORRGVSHFLPHQPD\
DOVREHWUDQVIHUUHGWR'U3DXO0HOW]HU¶VODEIRUJHQHH[SUHVVLRQDQDO\VLVVHHVHFWLRQ



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7KHVHVSHFLPHQVZLOOEHODEHOHGZLWKWKHSDWLHQW¶VVWXG\QXPEHU'U0HOW]HUZLOOUHWDLQ
UHVLGXDOVSHFLPHQVZKLFKPD\EHXVHGIRUIXWXUHUHVHDUFKRQO\LIWKHSDWLHQW KDVFRQVHQWWR
IXWXUHXVH
7KHVWXG\ZLOOUHPDLQRSHQDQGVWDWXVRIWKHWULDODQGVSHFLPHQVZLOOEHUHSRUWHGWRWKH1&,
,5%XQWLODOOVDPSOHVKDYHEHHQDQDO\]HGUHSRUWHGGHVWUR\HGVWULSSHGRIDOOLGHQWLILHUVDQG
XQOLQNHGIURPWKHSURWRFROGDWDEDVHRUWUDQVIHUUHGWRDQRWKHUSURWRFRO8QLQWHQWLRQDOORVVRU
GHVWUXFWLRQRIDQ\VDPSOHVZLOOEHUHSRUWHGWRWKH1&,,5%DVSDUWRIDQQXDOFRQWLQXLQJUHYLHZV
$Q\XVHRIVDPSOHVQRWRXWOLQHGLQ6HFWLRQRUZLOOUHTXLUHDQH[HPSWLRQIURP2+65RU
SURVSHFWLYH1&,,5%UHYLHZDQGDSSURYDO
6DPSOH+DQGOLQJIRU5HVHDUFK6DPSOHV0DQDJHGE\'U)LJJ¶V/DERUDWRU\
6WRUDJH7UDFNLQJ
$OOGDWDDVVRFLDWHGZLWKVDPSOHVLVHQWHUHGLQWRWKH&OLQLFDO3KDUPDFRORJ\3URJUDP¶V³3DWLHQW
6DPSOH'DWDEDVH0DQDJHPHQW6\VWHP´36'06 /DEUDGRU7KLVLVDVHFXUHSURJUDPWKDWFDQ
RQO\EHDFFHVVHGE\DXWKRUL]HGXVHUVLQ'U)LJJ¶VODE36'06FUHDWHVDXQLTXHEDUFRGH,'IRU
HYHU\VDPSOHDQGVDPSOHER[ZKLFKFDQQRWEHWUDFHGEDFNWRSDWLHQWVZLWKRXW36'06DFFHVV
7KHGDWDUHFRUGHGIRUHDFKVDPSOHLQFOXGHVWKHSDWLHQW,'QDPHWULDOQDPHSURWRFROQXPEHU
WLPHGUDZQF\FOHWLPHSRLQWGRVHPDWHULDOW\SHDVZHOODVER[DQGIUHH]HUORFDWLRQ7KHUHDUH
SDWLHQWGHPRJUDSKLFVWKDWFDQEHREWDLQHGWRFRUUHODWHZLWKWKHVDPSOHVWKURXJKWKH36'06
V\VWHP)RUHDFKVDPSOHWKHUHDUHQRWHVDVVRFLDWHGZLWKSURFHVVLQJPHWKRGGHOD\LQVDPSOH
SURFHVVLQJVWRUDJHFRQGLWLRQVRQWKHZDUGHWF%DUFRGHGVDPSOHVDUHVWRUHGLQEDUFRGHG
ER[HVLQDORFNHGIUHH]HUDWHLWKHURUq&DFFRUGLQJWRVWDELOLW\UHTXLUHPHQWV7KHVH
IUHH]HUVDUHORFDWHGRQVLWHLQ'U)LJJ¶VODEDQGRIIVLWHDW1&,)UHGHULFN&HQWUDO5HSRVLWRU\
6HUYLFHV)LVKHU%LRVHUYLFHVLQ)UHGHULFN0'6DPSOHVZLOOEHVWRUHGXQWLOUHTXHVWHGE\WKH
UHVHDUFKHUDVVLJQHGWRWKHSURWRFROKRZHYHUWKRVHUHTXHVWVPXVWFRPHIURPDPHPEHURI'U
)LJJ¶VODERUDWRU\ZLWK36'06DFFHVVFOHDUDQFH$OOUHTXHVWVDUHPRQLWRUHGDQGWUDFNHGLQWKH
36'06V\VWHP$OOUHVHDUFKHUVDUHUHTXLUHGWRVLJQDIRUPVWDWLQJWKDWWKHVDPSOHVDUHRQO\WR
EHXVHGIRUUHVHDUFKSXUSRVHVDVVRFLDWHGZLWKWKLVWULDODVSHUWKH,5%DSSURYHGSURWRFRO± WKDW
SURWRFROLVVWRUHGLQWKH36'06V\VWHPDQGWKDWDQ\XQXVHGVDPSOHVPXVWEHUHWXUQHGWR'U
)LJJ¶VODERUDWRU\
3URWRFRO&RPSOHWLRQ6DPSOH'HVWUXFWLRQ
2QFHSULPDU\UHVHDUFKREMHFWLYHVIRUWKHSURWRFRODUHDFKLHYHGLQWUDPXUDOUHVHDUFKHUVFDQ
UHTXHVWDFFHVVWRUHPDLQLQJVDPSOHVSURYLGHGWKH\KDYHD,5%DSSURYHGSURWRFRODQGSDWLHQW
FRQVHQW6DPSOHVDQGDVVRFLDWHGGDWDZLOOEHVWRUHGSHUPDQHQWO\XQOHVVWKHSDWLHQWZLWKGUDZV
FRQVHQW,IUHVHDUFKHUVKDYHVDPSOHVUHPDLQLQJRQFHWKH\KDYHFRPSOHWHGDOOVWXGLHVDVVRFLDWHG
ZLWKWKHSURWRFROWKH\PXVWEHUHWXUQHGWR'U)LJJ¶VODERUDWRU\7KH3,ZLOOUHSRUWGHVWUR\HG
VDPSOHVWRWKH,5%LIVDPSOHVEHFRPHXQVDOYDJHDEOHEHFDXVHRIHQYLURQPHQWDOIDFWRUVH[
EURNHQIUHH]HURUODFNRIGU\LFHLQDVKLSSLQJFRQWDLQHURULIDSDWLHQWZLWKGUDZVFRQVHQW
6DPSOHVZLOODOVREHUHSRUWHGDVORVWLIWKH\DUHORVWLQWUDQVLWEHWZHHQIDFLOLWLHVRUPLVSODFHGE\
UHVHDUFKHUV'U)LJJ¶VODERUDWRU\ZLOOUHSRUWDQ\IUHH]HUSUREOHPVORVWVDPSOHVRURWKHU
SUREOHPVDVVRFLDWHGZLWKVDPSOHVWRWKH,5%WKH1&,&OLQLFDO'LUHFWRUDQGWKHRIILFHRIWKH
&&51&,



 $SSHQGL[%3DWLHQW'LDU\
'LUHFWLRQV3OHDVHXVHWKLVGLDU\GDLO\WRUHFRUG\RXUPHGLFDWLRQVDQGV\PSWRPV'RQRWZDLW
XQWLOWKHHQGRIWKHZHHNWRFRPSOHWHWKHGLDU\
&\FOHBBBBBBB6WDUW'DWHBBBBBBBB
'D\
9DQGHWDQLE
WDNHQ
\HVQR
&RPPHQWV6\PSWRPV
1DPHDQGGRVHRIRWKHU
PHGLFDWLRQVWDNHQDQGZK\
WKH\ZHUHWDNHQ
6XQGD\
'DWH
0RQGD\
'DWH
7XHVGD\
'DWH
:HGQHVGD\
'DWH
7KXUVGD\
'DWH
)ULGD\
'DWH
6DWXUGD\
'DWH
8VHWKLVDUHDIRUDQ\RWKHULQIRUPDWLRQUHODWHGWRWKHPHGLFDWLRQVRU\RXUV\PSWRPV,I\RX
PDNHDPLVWDNHFURVVWKURXJKWKHLQFRUUHFWLQIRUPDWLRQRQFHDQGLQLWLDOLWZLWKWKHGDWHRU
PDNHDFRPPHQWKHUHLQWKLV ER[H[SODLQLQJWKHHUURU8VHWKHEDFNRIWKHIRUPLIPRUHURRPLV
QHHGHG3OHDVHUHWXUQWKLVGLDU\DWHDFKYLVLW


9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
 $SSHQGL[&0HGLFDWLRQV.QRZQ7R3URORQJWKH47,QWHUYDODQGRU,QGXFH7RUVDGHV
'H3RLQWHV7G3
$SSHQGL[&XSGDWHG$XJXVW
,WKDVEHHQUHFRJQL]HGIRUDQXPEHURI\HDUVWKDWFHUWDLQSUHVFULSWLRQPHGLFDWLRQVFDQSURORQJ
WKH4747FLQWHUYDODQGFDXVHDIRUPRIDFTXLUHG/RQJ47V\QGURPHNQRZQDVGUXJLQGXFHG
/4767KHGUXJVWKDWSURORQJWKH47LQWHUYDODQGRUKDYHDULVNRILQGXFLQJ7RUVDGHVGH
3RLQWHV7G3DUHOLVWHGEHORZ:HKDYHGLYLGHGWKHVHLQWRWZRJURXSVEDVHGRQWKHLUNQRZQRU
SHUFHLYHGULVNRIFDXVLQJ7G3
*URXS'UXJVWKDWDUHJHQHUDOO\DFFHSWHGE\DXWKRULWLHVWRKDYHDULVNRIFDXVLQJ
7RUVDGHVGH3RLQWHV
&RQFRPLWDQWXVHRIWKHVHGUXJVLVQRWDOORZHGGXULQJWKHVWXG\RUZLWKLQZHHNVRI
UDQGRPL]DWLRQDWOHDVWIRXUZHHNVIRUOHYRPHWKDG\O7KHVHGUXJVVKRXOGDOVREHDYRLGHGIRUXS
WRZHHNVIROORZLQJGLVFRQWLQXDWLRQRIVWXG\WUHDWPHQW
7DEOH
*URXS'UXJV
'UXJ *HQHULF1DPHV
'UXJ&ODVV&OLQLFDO8VDJH
&RPPHQWV
$PLRGDURQH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
7G3ULVNUHJDUGHGDVORZ
$UVHQLFWULR[LGH
$QWLFDQFHU/HXNHPLD
$VWHPL]ROH
$QWLKLVWDPLQH$OOHUJLF
UKLQLWLV
1R/RQJHUDYDLODEOHLQ86
%HSULGLO
$QWLDQJLQDOKHDUWSDLQ
&KORURTXLQH
$QWLPDODULDOPDODULD
LQIHFWLRQ
&KORUSURPD]LQH
$QWLSV\FKRWLF$QWLHPHWLF
VFKL]RSKUHQLDQDXVHD
&LVDSULGH
*,VWLPXODQWKHDUWEXUQ
5HVWULFWHGDYDLODELOLW\
&ODULWKURP\FLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
'LVRS\UDPLGH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
'RIHWLOLGH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
'RPSHULGRQH
$QWLQDXVHDQDXVHD
1RWDYDLODEOHLQWKH86
'URSHULGRO
6HGDWLYH$QWLQDXVHD
DQHVWKHVLDDGMXQFWQDXVHD



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7DEOH
*URXS'UXJV
'UXJ *HQHULF1DPHV
'UXJ&ODVV&OLQLFDO8VDJH
&RPPHQWV
(U\WKURP\FLQ
$QWLELRWLF*,VWLPXODQW
EDFWHULDOLQIHFWLRQLQFUHDVH
*,PRWLOLW\
+DORIDQWULQH
$QWLPDODULDOPDODULD
LQIHFWLRQ
+DORSHULGRO
$QWLSV\FKRWLF
VFKL]RSKUHQLDDJLWDWLRQ
:KHQJLYHQLQWUDYHQRXVO\RU
DWKLJKHUWKDQ UHFRPPHQGHG
GRVHVULVNRIVXGGHQGHDWK
47 SURORQJDWLRQDQGWRUVDGHV
LQFUHDVHV
,EXWLOLGH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
/HYRPHWKDG\O
2SLDWHDJRQLVWSDLQFRQWURO
QDUFRWLFGHSHQGHQFH
0HVRULGD]LQH
$QWLSV\FKRWLF
VFKL]RSKUHQLD
0HWKDGRQH
2SLDWHDJRQLVWSDLQFRQWURO
QDUFRWLFGHSHQGHQFH
0R[LIOR[DFLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
3HQWDPLGLQH
$QWLLQIHFWLYHSQHXPRF\VWLV
SQHXPRQLD
3LPR]LGH
$QWLSV\FKRWLF7RXUHWWH
V
WLFV
3UREXFRO
$QWLOLSHPLF
+\SHUFKROHVWHUROHPLD
1RORQJHUDYDLODEOHLQ86
3URFDLQDPLGH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
4XLQLGLQH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
6RWDORO
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
6SDUIOR[DFLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
7HUIHQDGLQH
$QWLKLVWDPLQH$OOHUJLF
UKLQLWLV
1RORQJHUDYDLODEOHLQ86



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7DEOH
*URXS'UXJV
'UXJ *HQHULF1DPHV
'UXJ&ODVV&OLQLFDO8VDJH
&RPPHQWV
7KLRULGD]LQH
$QWLSV\FKRWLF
VFKL]RSKUHQLD
9DQGHWDQLE'RHVQRWDSSO\
WRWKLVVWXG\
$QWLFDQFHU7K\URLGFDQFHU
&$35(/6$LVWKH
SURSRVHGEUDQGQDPH
6RXUFHZZZ47GUXJVRUJ
*URXS'UXJVWKDWLQVRPHUHSRUWVPD\EHDVVRFLDWHGZLWK7RUVDGHVGH 3RLQWHVEXWDWWKLV
WLPHODFNVXEVWDQWLDOHYLGHQFHRIFDXVLQJ7RUVDGHVGH3RLQWHV
&RQFRPLWDQWXVHRIWKHVHGUXJVLVQRWDOORZHGZLWKLQZHHNVRIUDQGRPL]DWLRQRUGXULQJWKH
VWXG\7KHVHGUXJVZLOOEHDOORZHGGXULQJWKHVWXG\DWWKHGLVFUHWLRQRIWKH,QYHVWLJDWRULI
FRQVLGHUHGDEVROXWHO\QHFHVVDU\,QVXFKFDVHVWKHSDWLHQWPXVWEHFORVHO\PRQLWRUHGLQFOXGLQJ
UHJXODUFKHFNVRI47FDQGHOHFWURO\WHVUHIHUHQFHVHFWLRQRIWKHSURWRFRO
7DEOH
*URXS'UXJV
'UXJ%UDQG1DPHV
'UXJ&ODVV&OLQLFDO8VDJH
&RPPHQWV
$OIX]RVLQ
$OSKDEORFNHU%HQLJQ
SURVWDWLFK\SHUSODVLD
$PDQWDGLQH
'RSDPLQHUJLF$QWLYLUDO
$QWLLQIHFWLYH3DUNLQVRQ
V
'LVHDVH
$WD]DQDYLU
3URWHDVHLQKLELWRU+,9
$]LWKURP\FLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
&KORUDOK\GUDWH
6HGDWLYHVHGDWLRQLQVRPQLD
&OR]DSLQH
$QWLSV\FKRWLF
VFKL]RSKUHQLD
'RODVHWURQ
$QWLQDXVHDQDXVHD
YRPLWLQJ
'URQHGDURQH
$QWLDUUK\WKPLF$WULDO
)LEULOODWLRQ
(VFLWDORSUDP
$QWLGHSUHVVDQW0DMRU
GHSUHVVLRQ$Q[LHW\GLVRUGHUV
)DPRWLGLQH
+UHFHSWRUDQWDJRQLVW
3HSWLFXOFHU*(5'
)HOEDPDWH
$QWLFRQYXOVDQWVHL]XUH



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7DEOH
*URXS'UXJV
'UXJ%UDQG1DPHV
'UXJ&ODVV&OLQLFDO8VDJH
&RPPHQWV
)OHFDLQLGH
$QWLDUUK\WKPLFDEQRUPDO
KHDUWUK\WKP
)RVFDUQHW
$QWLYLUDO+,9LQIHFWLRQ
)RVSKHQ\WRLQ
$QWLFRQYXOVDQWVHL]XUH
*DWLIOR[DFLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
*HPLIOR[DFLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
*UDQLVHWURQ
$QWLQDXVHDQDXVHDDQG
YRPLWLQJ
,QGDSDPLGH
'LXUHWLFVWLPXODWHXULQH	
VDOWORVV
,VUDGLSLQH
$QWLK\SHUWHQVLYHKLJK
EORRGSUHVVXUH
/DSDWLQLE
$QWLFDQFHUEUHDVWFDQFHU
PHWDVWDWLF
/HYRIOR[DFLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
/LWKLXP
$QWLPDQLDELSRODUGLVRUGHU
0RH[LSULO+&7=
$QWLK\SHUWHQVLYHKLJK
EORRGSUHVVXUH
1LFDUGLSLQH
$QWLK\SHUWHQVLYHKLJK
EORRGSUHVVXUH
1LORWLQLE
$QWLFDQFHU/HXNHPLD
2FWUHRWLGH
(QGRFULQHDFURPHJDO\
FDUFLQRLGGLDUUKHD
2IOR[DFLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
2QGDQVHWURQ
$QWLHPHWLFQDXVHDDQG
YRPLWLQJ
2[\WRFLQ
2[\WRFLF/DERUVWLPXODWLRQ
3DOLSHULGRQH
$QWLSV\FKRWLFDW\SLFDO
6FKL]RSKUHQLD
3HUIOXWUHQOLSLGPLFURVSKHUHV
,PDJLQJFRQWUDVWDJHQW
(FKRFDUGLRJUDSK\



9HUVLRQ1&,3URWRFRO& 0
3KDVH,,,9DQGHWDQLEDQG%RUWH]RPLE &7(3
7DEOH
*URXS'UXJV
'UXJ%UDQG1DPHV
'UXJ&ODVV&OLQLFDO8VDJH
&RPPHQWV
4XHWLDSLQH
$QWLSV\FKRWLF
VFKL]RSKUHQLD
5DQROD]LQH
$QWLDQJLQDOFKURQLFDQJLQD
5LVSHULGRQH
$QWLSV\FKRWLF
VFKL]RSKUHQLD
5R[LWKURP\FLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
QRWDYDLODEOHLQWKH8QLWHG
6WDWHV
6HUWLQGROH
$QWLSV\FKRWLFDW\SLFDO
$Q[LHW\6FKL]RSKUHQLD
6XQLWLQLE
$QWLFDQFHU5&&*,67
7DFUROLPXV
,PPXQRVXSSUHVVDQW
,PPXQHVXSSUHVVLRQ
7DPR[LIHQ
$QWLFDQFHUEUHDVWFDQFHU
7HOLWKURP\FLQ
$QWLELRWLFEDFWHULDO
LQIHFWLRQ
7L]DQLGLQH
0XVFOHUHOD[DQW
9DUGHQDILO
SKRVSKRGLHVWHUDVHLQKLELWRU
YDVRGLODWRU
9HQODID[LQH
$QWLGHSUHVVDQWGHSUHVVLRQ
9RULFRQD]ROH
$QWLIXQJDODQWLIXQJDO
=LSUDVLGRQH
$QWLSV\FKRWLF
VFKL]RSKUHQLD
6RXUFHZZZ47GUXJVRUJ



0(',&$/5(&25'
&216(17723$57,&,3$7(,1$&/,1,&$/5(6($5&+678'<

$GXOW3DWLHQWRU
 3DUHQWIRU0LQRU3DWLHQW
,167,787(
1DWLRQDO&DQFHU,QVWLWXWH
678'<180%(5
&
35,1&,3$/,19(67,*$725
5DYL0DGDQ0'
678'<7,7/(
$7DUJHWHG3KDVH,,,7ULDORI='9DQGHWDQLE&$35(/6$3OXVWKH3URWHDVRPH
,QKLELWRU %RUWH]RPLE 9HOFDGH LQ $GXOWV ZLWK 6ROLG 7XPRUV ZLWK D )RFXV RQ
+HUHGLWDU\ RU 6SRUDGLF /RFDOO\ $GYDQFHG RU 0HWDVWDWLF 0HGXOODU\ 7K\URLG &DQFHU
07&
&RQWLQXLQJ5HYLHZ$SSURYHGE\WKH,5%RQ
$PHQGPHQW$SSURYHGE\WKH,5%RQ0
'DWHSRVWHGWRZHE
6WDQGDUG
3$7,(17,'(17,),&$7,21
&216(17723$57,&,3$7(,1$&/,1,&$/5(6($5&+678'<

$GXOW3DWLHQWRU
 3DUHQWIRU0LQRU3DWLHQW
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


,1752'8&7,21
:HLQYLWH\RXWRWDNHSDUWLQDUHVHDUFKVWXG\DWWKH1DWLRQDO,QVWLWXWHVRI+HDOWK1,+
)LUVWZHZDQW\RXWRNQRZWKDW
7DNLQJSDUWLQ1,+UHVHDUFKLVHQWLUHO\YROXQWDU\
<RXPD\FKRRVHQRWWRWDNHSDUWRU\RXPD\ZLWKGUDZIURPWKHVWXG\DWDQ\WLPH,Q
HLWKHUFDVH\RXZLOOQRWORVHDQ\EHQHILWVWRZKLFK\RXDUHRWKHUZLVHHQWLWOHG+RZHYHU
WRUHFHLYHFDUHDWWKH1,+\RXPXVWEHWDNLQJSDUWLQDVWXG\RUEHXQGHUHYDOXDWLRQIRU
VWXG\SDUWLFLSDWLRQ
<RXPD\UHFHLYHQREHQHILWIURPWDNLQJSDUW7KHUHVHDUFKPD\JLYHXVNQRZOHGJHWKDW
PD\KHOSSHRSOHLQWKHIXWXUH
6HFRQG VRPH SHRSOH KDYH SHUVRQDO UHOLJLRXV RU HWKLFDO EHOLHIV WKDW PD\ OLPLW WKH NLQGV RI
PHGLFDORUUHVHDUFKWUHDWPHQWVWKH\ZRXOGZDQWWRUHFHLYHVXFKDVEORRGWUDQVIXVLRQV,I\RX
KDYHVXFKEHOLHIVSOHDVHGLVFXVVWKHPZLWK\RXU1,+GRFWRUVRUUHVHDUFKWHDPEHIRUH\RXDJUHH
WRWKHVWXG\
1RZZHZLOOGHVFULEHWKLVUHVHDUFKVWXG\%HIRUH\RXGHFLGHWRWDNHSDUWSOHDVHWDNHDVPXFK
WLPHDV\RXQHHGWRDVNDQ\TXHVWLRQVDQGGLVFXVVWKLVVWXG\ZLWKDQ\RQHDW1,+RUZLWKIDPLO\
IULHQGVRU\RXUSHUVRQDOSK\VLFLDQRURWKHUKHDOWKSURIHVVLRQDO
:K\LVWKLVVWXG\EHLQJGRQH"
7KHFRPELQDWLRQRIRUDOYDQGHWDQLEDQGLQWUDYHQRXVERUWH]RPLEKDVQRWEHHQXVHGLQKXPDQV
+RZHYHUERWKGUXJVKDYHEHHQVWXGLHGVHSDUDWHO\%RUWH]RPLELVDSSURYHGE\WKH)RRGDQG
'UXJ $GPLQLVWUDWLRQ )'$ IRU WKH WUHDWPHQW RI  RWKHU W\SHV RI FDQFHU FDOOHG PXOWLSOH
P\HORPDDQGPDQWOHFHOOO\PSKRPD,WLVFRQVLGHUHGDQ³LQYHVWLJDWLRQDOGUXJ´LQWKLVVWXG\
EHFDXVHZHDUHVWXG\LQJLWVXVHLQDQRWKHUFDQFHU%RUWH]RPLEKDVEHHQWHVWHGLQPDQ\RWKHU
W\SHV RI FDQFHU LQFOXGLQJ OXQJ EUHDVW ERQH DQG JDVWURLQWHVWLQDO FDQFHUV ,Q WKHVH VWXGLHV
ERUWH]RPLE GLG QRW VKRZ VLJQLILFDQW DFWLYLW\ EXW PDQ\ VWXGLHV DUH VWLOO RQJRLQJ 6LQFH WKH


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


LQLWLDOVWDUWRIWKLVVWXG\9DQGHWDQLEKDVEHHQ)'$DSSURYHGIRUWKHWUHDWPHQWRIV\PSWRPDWLF
RU SURJUHVVLYH PHGXOODU\ WK\URLG FDQFHU LQ SDWLHQWV ZLWK XQUHVHFWDEOH ORFDOO\ DGYDQFHG RU
PHWDVWDWLFGLVHDVH

7KLVSDUWLFXODUFRPELQDWLRQRIPHGLFDWLRQVZDVLQLWLDOO\FKRVHQIRUDIHZUHDVRQV9DQGHWDQLE
DQGERUWH]RPLEKDYHERWKVKRZQDFWLYLW\LQFDQFHULQFOXGLQJPHGXOODU\WK\URLGFDQFHU,WLV
RXU KRSH WKDW WKH FRPELQDWLRQ RI WKHVH WZR GUXJV ZLOO EH EHWWHU WKDQ HLWKHU RI WKHP DORQH
7KHLU VLGH HIIHFWV GR QRW DSSHDU WR RYHUODS DOWKRXJK ZH ZLOO EH FDUHIXOO\ PRQLWRULQJ DOO
SDWLHQWVUHFHLYLQJWKLVFRPELQDWLRQ7XPRUVKDYHGLVWLQFWPHFKDQLVPVRUZD\VRIVLJQDOLQJRU
WULJJHULQJ WKHLU RZQ JURZWK  :H KDYH EHHQ DEOH WR LGHQWLI\ VHYHUDO RI WKHVH PHFKDQLVPV
7KHVHWZRGUXJVHDFKZRUNDWDGLIIHUHQWSRLQWLQWKHWXPRUJURZWKVLJQDOLQJSDWKZD\:H
KRSHWREHDEOHWRVWRSWKHWULJJHULQJRIWXPRUJURZWKVLJQDOVZLWKWKLVFRPELQDWLRQRIGUXJV
7KHSXUSRVHRIWKHVWXG\LVWR
 'HWHUPLQHLIWKLVFRPELQDWLRQWUHDWPHQWZLOOEHHIIHFWLYHLQGHFUHDVLQJWKHDPRXQWRI
FDQFHUDQGLILWGRHVWRGHWHUPLQHKRZORQJWKHUHVSRQVHZLOOODVW
 'HWHUPLQHWKHVLGHHIIHFWVWKDWPD\RFFXUZLWKWKLVFRPELQDWLRQRIWUHDWPHQWV
 'HWHUPLQHZKDWGRVHVRIHDFKGUXJDUHZHOOWROHUDWHGDQGVDIHZKHQJLYHQWRJHWKHU
 7RDQDO\]HJHQHWLFPXWDWLRQVLQWXPRUVWRKHOSXVXQGHUVWDQGKRZWXPRUVJURZDQG
KRZWKHVHGUXJVLQWHUDFWZLWKWKHPHFKDQLVPVZLWKLQWKHWXPRU
:K\DUH\RXEHLQJDVNHGWRWDNHSDUWLQWKLVVWXG\"

7KLVLVDVWXG\GHVLJQHGIRUSDWLHQWVZLWKYDULRXVW\SHVRIFDQFHULQFOXGLQJPHGXOODU\WK\URLG
FDQFHU
+RZPDQ\SHRSOHZLOOWDNHSDUWLQWKLVVWXG\"
8SWRSHRSOHZLOOWDNHSDUWLQWKLVVWXG\
'HVFULSWLRQRI5HVHDUFK6WXG\
7KHVWXG\LVGLYLGHGLQWRSDUWV,QWKHILUVWSDUWWUHDWPHQWZLOOFRQVLVWRIDFRPELQDWLRQRI
WZRDQWLFDQFHUDJHQWVYDQGHWDQLEDQGERUWH]RPLE,QWKHVHFRQGSDUWWUHDWPHQWZLOOEHHLWKHU
ERWKRIWKHVHDQWLFDQFHUGUXJVRURQO\RQHRIWKHP7KLVLVH[SODLQHGLQPRUHGHWDLORQWKH
IROORZLQJSDJHVRIWKLVFRQVHQWIRUP9DQGHWDQLELVDSLOOZKLFK\RXZLOOWDNHE\PRXWKRQFH
HDFKGD\DQGFRQWLQXHWKURXJKRXWWKHGXUDWLRQRIWKHVWXG\%RUWH]RPLEZLOOEHJLYHQWKURXJK
DFDWKHWHUSODFHGLQRQHRI\RXUYHLQVDQGZLOOEHJLYHQRQWKHVWWKWKDQGWKGD\RIHDFK
F\FOH7KHLQIXVLRQWDNHVOHVVWKDQPLQXWHDQGLVIROORZHGE\DIOXVKRILQWUDYHQRXVIOXLG




0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW



:KDWZLOOKDSSHQLI\RXWDNHSDUWLQWKLVUHVHDUFKVWXG\"
%HIRUH\RXEHJLQWKHVWXG\
3ULRUWRVWDUWLQJRU³HQUROOLQJ´RQWKHVWXG\DQHYDOXDWLRQZLOOEHGRQHDWWKH1,+2QFRORJ\
&OLQLF WR GHWHUPLQH LI WKLV VWXG\ LV DSSURSULDWH IRU \RX  7KLV LV FDOOHG ³VFUHHQLQJ´ DQG D
GLIIHUHQWFRQVHQWIRUPH[SODLQVWKHWHVWVUHTXLUHGIRUVFUHHQLQJ

,I D SDWKRORJ\ VSHFLPHQ LV QRW DYDLODEOH IURP SUHYLRXV VXUJHU\ D ELRSV\ PD\ QHHG WR EH
SHUIRUPHGDWWKH1&,WRFRQILUP\RXUFDQFHU$VHSDUDWHLQIRUPHGFRQVHQWZLOOEHJLYHQWR\RX
IRUWKLVSURFHGXUHLIQHHGHG

'XULQJWKHVWXG\
7KLV VWXG\ LV GLYLGHG LQWR WZR SKDVHV  ,Q 3KDVH , SDWLHQWV ZLWK YDULRXV W\SHV RI FDQFHU
SDUWLFLSDWHG  %RWK RI WKH VWXG\ PHGLFDWLRQV YDQGHWDQLE DQG ERUWH]RPLE ZHUH JLYHQ DW
LQFUHDVLQJGRVHV7KHILUVWIHZSDWLHQWVUHFHLYHG/HYHO2QHRIERWKGUXJV7KHOHYHOVDUH
OLVWHGEHORZIRUUHIHUHQFH7KHVHSDWLHQWVZHUHFDUHIXOO\PRQLWRUHGIRUDWOHDVW±ZHHNV
6LQFHWKHUHZHUHQRVHYHUHWR[LFLWLHVRUVLGHHIIHFWVDW/HYHO2QHWKHQH[WJURXSRISDWLHQWV
EHJDQ DW /HYHO 7ZR  /HYHOV LQFUHDVHG DV ORQJ DV QR VHYHUH WR[LFLWLHV ZHUH VHHQ 7KLV
FRQWLQXHGXQWLODGHFLVLRQZDVUHDFKHGUHJDUGLQJZKDWLVWKHVDIHVWGRVHOHYHO7KLVOHYHOLV
FDOOHGWKH0D[LPDO7ROHUDWHG'RVH07'7KH3KDVH,SRUWLRQRIWKLVVWXG\LVQRZFRPSOHWH
DQGLWKDVEHHQGHWHUPLQHGWKDWWKH07'LV/HYHOPJYDQGHWDQLEGDLO\PJP
ERUWH]RPLERQGD\V	HYHU\GD\V7KLVLVWKHGRVHWKDWZLOOEHXVHGLQWKH3KDVH
,,SRUWLRQRIWKHVWXG\

x/HYHOPJYDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\GD\V
x/HYHOPJYDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\GD\V
x/HYHOPJYDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\GD\V
x/HYHOPJYDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\GD\V

0JPLVDZD\WRFDOFXODWHDGRVHEDVHGRQ\RXUKHLJKWDQGZHLJKW
7ZRDGGLWLRQDOOHYHOVPD\EHLQFOXGHGLQWKHGHVLJQGHSHQGLQJRQWKHVLGHHIIHFWVDWYDULRXV
OHYHOV7KHVHOHYHOVDUH
x/HYHO$PJYDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\
GD\V
x/HYHO%PJYDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\
GD\V



0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


,Q3KDVH,,RIWKHVWXG\SDWLHQWVZLWKDGLDJQRVLVRIPHGXOODU\WK\URLGFDQFHUZLOOSDUWLFLSDWH
7KHVHSDWLHQWVZLOOEHUDQGRPO\DVVLJQHGOLNHIOLSSLQJDFRLQWRRQHRIWKHIROORZLQJWZR
JURXSV*URXS$ZLOOUHFHLYHERWKVWXG\PHGLFDWLRQVYDQGHWDQLEDQGERUWH]RPLEDWWKH
PD[LPDOO\WROHUDWHGGRVHOHYHOIURPWKH3KDVH,SRUWLRQRIWKHVWXG\/HYHOPJ
YDQGHWDQLEGDLO\PJPERUWH]RPLERQGD\V	HYHU\GD\V*URXS%ZLOO
UHFHLYHRQO\YDQGHWDQLEDWWKHVDPHGRVHDVWKRVHLQ*URXS$PJYDQGHWDQLEGDLO\7KH
UDQGRPL]DWLRQRUDVVLJQPHQWWR*URXS$RU%LVGRQHE\DFRPSXWHUSURJUDP,I\RXDUHLQ
3KDVH,,RIWKHVWXG\\RXZLOOQRWNQRZZKLFK*URXS\RXZLOOEHDVVLJQHGWRXQWLODIWHU\RXVLJQ
WKHFRQVHQWIRUPDUHHQUROOHGDQGWKHQUDQGRPL]HG2QFH\RXDUHHQUROOHGDQGUDQGRPL]HG\RX
ZLOOEHWROG7KHUHLVQRSODFHERLQWKLVVWXG\<RXZLOONQRZH[DFWO\ZKDWPHGLFDWLRQV\RX
DUHUHFHLYLQJ,WZLOOHLWKHUEHERWKVWXG\PHGLFDWLRQVRURQHVWXG\PHGLFDWLRQ7KHSXUSRVHRI
WKLVGHVLJQLVWRFRPSDUHWKHHIIHFWRQPHGXOODU\WK\URLGFDQFHURIWKHFRPELQDWLRQRI
PHGLFDWLRQVWRWKHVLQJOHPHGLFDWLRQ7KHUDWLRRIDVVLJQPHQWWRHDFKDUPLVWR7KLVPHDQV
WKDWIRUHYHU\SDWLHQWVDVVLJQHGWR*URXS$ERWKPHGLFDWLRQVSDWLHQWZLOOEHDVVLJQHGWR
*URXS%RQHPHGLFDWLRQ7KHUHLVHYLGHQFHWKDWYDQGHWDQLEDORQHKDVDFWLYLW\LQ07&7KLV
WULDOGHVLJQZLOOKHOSXVGHWHUPLQHLIWKHFRPELQDWLRQRIERUWH]RPLEDQGYDQGHWDQLELVDVJRRGDV
RUEHWWHUWKDQYDQGHWDQLEDORQH,WZLOODOVRWHOOXVZKDWWKHVLGHHIIHFWVDUHRIWKHFRPELQDWLRQ
FRPSDUHGWRYDQGHWDQLEDORQH
7KHWUHDWPHQWLWVHOIZLOOEHGRQHRQDQRXWSDWLHQWEDVLVLQPRVWFDVHV7KHWUHDWPHQWZLOOEH
UHSHDWHGHYHU\ZHHNV,I\RXDUHLQWKH3KDVH,SRUWLRQRIVWXG\\RXZLOOQHHGWRFRPHLQWR
WKH&OLQLFDO&HQWHUIRULQIXVLRQVRQ'D\DQG,I\RXDUHLQWKH3KDVH,,SRUWLRQRIWKH
VWXG\DQG\RXDUHLQWKHJURXSRISDWLHQWVWKDWZLOOUHFHLYHERWKYDQGHWDQLEDQGERUWH]RPLE
\RXZLOOQHHGWRFRPHLQWRWKH&OLQLFDO&HQWHUIRULQIXVLRQVRQ'D\DQG

9DQGHWDQLE LV DQ RUDO PHGLFDWLRQ SLOO DQG ZLOO VWDUW RQ &\FOH  'D\   <RX PD\ WDNH
YDQGHWDQLEZLWKRUZLWKRXWIRRG<RXZLOOWDNHYDQGHWDQLEGDLO\ZLWKRXWVWRSSLQJXQOHVVWKHUH
DUHVLGHHIIHFWVIURPWKHYDQGHWDQLEWKURXJKRXWWKHHQWLUHWUHDWPHQW,QRWKHUZRUGV\RXZLOO
QRWVWRSWKHYDQGHWDQLEEHWZHHQF\FOHV,I\RXDUHLQWKH3KDVH,SRUWLRQRIWKHVWXG\WKHGRVH
RIYDQGHWDQLEPD\EHLQFUHDVHGDIWHUZHHNVDVORQJDVWKHVLGHHIIHFWVDUHWROHUDEOH,I\RX
DUHLQWKH3KDVH,,SRUWLRQRIWKHVWXG\WKHGRVHRIYDQGHWDQLEZLOOVWD\WKHVDPH

%RUWH]RPLELVDQDQWLFDQFHUGUXJWKDWZLOOEHJLYHQRQ'D\'D\'D\DQG'D\RI
HDFKF\FOH,WZLOOEHJLYHQWKURXJKDYHQRXVFDWKHWHUE\DQLQIXVLRQIURPDV\ULQJHIROORZHG
E\DQLQWUDYHQRXVIOXVKRIIOXLG,I \RXDUHLQWKH3KDVH,SRUWLRQRIWKHVWXG\WKHGRVHRI
ERUWH]RPLEPD\EHLQFUHDVHGDIWHUZHHNVDVORQJDVWKHVLGHHIIHFWVDUHWROHUDEOH,I\RXDUH
LQWKH3KDVH,,SRUWLRQRIWKHVWXG\\RXZLOOEHDVVLJQHGWRHLWKHU*URXS$RU*URXS%*URXS
$ SDWLHQWV ZLOO UHFHLYH ERUWH]RPLE DV GHVFULEHG DERYH  *URXS % SDWLHQWV ZLOO QRW UHFHLYH
ERUWH]RPLE

2QHRIWKHJRDOVRIWKH3KDVH,SRUWLRQRIWKHVWXG\LVWRGHWHUPLQHZKDWGRVHVRIHDFKGUXJDUH
VDIHWRJLYHWRJHWKHU2QFHWKHVHGRVHVKDYHEHHQGHWHUPLQHG\RXUGRVHZLOOQRWEHLQFUHDVHG


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


DERYHWKLVVDIHGRVH%RWKGUXJGRVHVPD\EHGHFUHDVHGEDVHGRQ\RXUV\PSWRPV7KLVLV
ZK\ZHQHHGWRHYDOXDWH\RXIUHTXHQWO\

&7VFDQVZLOOEHGRQHDIWHUHDFKQGF\FOH&\FOHF\FOHHWFWRIROORZWKHFDQFHUDQGVHH
ZKDWHIIHFWWKHGUXJVDUHKDYLQJ7KHWUHDWPHQWZLOOFRQWLQXHDVORQJDVWKHFDQFHULVVWDEOHRU
VPDOOHUDQG\RXDUHWROHUDWLQJLWZHOODQGWKHSK\VLFLDQGHWHUPLQHVLWLVVDIHWRFRQWLQXH,IDOO
WKHFDQFHUGLVDSSHDUVZHZLOOFRQWLQXHWKHWUHDWPHQWIRUDGGLWLRQDOF\FOHV7KHFDQFHUPD\
VKULQNWRWKHSRLQWZKHUHVXUJHU\LVDQRSWLRQ,IWKDWLVSRVVLEOHZHZLOOVWRSWKHWUHDWPHQWVR
\RXPD\UHFHLYHVXUJHU\,IWKHFDQFHUJURZVWKHWUHDWPHQWZLOOEHVWRSSHGEHFDXVHLWLVQRW
KHOSLQJ

0LOOHQQLXP3KDUPDFHXWLFDOV,QFZLOOVXSSO\ERUWH]RPLEWRWKH1DWLRQDO&DQFHU,QVWLWXWH7KH
1DWLRQDO &DQFHU ,QVWLWXWH ZLOO WKHQ VXSSO\ ERUWH]RPLE WR WKH &OLQLFDO &HQWHU 3KDUPDF\
$VWUD=HQHFDZLOOVXSSO\WKHH[SHULPHQWDOGUXJYDQGHWDQLEWRWKH&OLQLFDO&HQWHU3KDUPDF\IRU
XVHLQWKLVVWXG\7KH&OLQLFDO&HQWHU3KDUPDF\ZLOOVXSSO\DQ\RWKHUPHGLFDWLRQV
%LUWK&RQWURO
,I\RXDUHDZRPDQZKRLVEUHDVWIHHGLQJRUSUHJQDQW\RXPD\QRWWDNHSDUWLQWKHVWXG\EHFDXVH
ZHGRQ¶WNQRZKRZWKLVPHGLFLQHZRXOGDIIHFW\RXUEDE\RU\RXUXQERUQFKLOG,I\RXDUHD
ZRPDQZKRFDQEHFRPHSUHJQDQWRUDUHWKHSDUWQHURIDZRPDQZKRFDQEHFRPHSUHJQDQW\RX
ZLOOQHHGWRSUDFWLFHDQHIIHFWLYHIRUPRIELUWKFRQWUROEHIRUHVWDUWLQJVWXG\WUHDWPHQWGXULQJ
VWXG\WUHDWPHQWDQGIRUIRXUPRQWKVDIWHU\RXILQLVKVWXG\WUHDWPHQW,I\RXWKLQNWKDW\RXRU
\RXUSDUWQHULVSUHJQDQW\RXVKRXOGWHOO\RXUVWXG\GRFWRURUQXUVHDWRQFH
(IIHFWLYHIRUPVRIELUWKFRQWUROLQFOXGH
 DEVWLQHQFH
x LQWUDXWHULQHGHYLFH,8'
 KRUPRQDO>ELUWKFRQWUROSLOOVLQMHFWLRQVRULPSODQWV@
 WXEDOOLJDWLRQ
 YDVHFWRP\
$OWHUQDWLYH$SSURDFKHVRU7UHDWPHQWV

,QVWHDGRIEHLQJLQWKLVVWXG\\RXKDYHWKHVHRSWLRQV
x *HWWLQJWUHDWPHQWRUFDUHIRU\RXUFDQFHUZLWKRXWEHLQJLQDVWXG\
x 7DNLQJSDUWLQDQRWKHUVWXG\
x *HWWLQJFRPIRUWFDUHDOVRFDOOHGSDOOLDWLYHFDUH 7KLVW\SHRI FDUH KHOSV UHGXFHSDLQ
WLUHGQHVVDSSHWLWHSUREOHPVDQGRWKHUSUREOHPVFDXVHGE\WKHFDQFHU,WGRHVQRWWUHDW
WKHFDQFHUGLUHFWO\,QVWHDGLWWULHVWRLPSURYHKRZ\RXIHHO&RPIRUWFDUHWULHVWRNHHS
\RXDVDFWLYHDQGFRPIRUWDEOHDVSRVVLEOH


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


3OHDVHWDONWR\RXUGRFWRUDERXWWKHVHDQGRWKHURSWLRQV

5LVNVRU'LVFRPIRUWVRI3DUWLFLSDWLRQ
,I\RXFKRRVHWRWDNHSDUWLQWKLVVWXG\WKHUHLVDULVNWKDW
x <RXPD\ORVHWLPHDWZRUNRUKRPHDQGVSHQGPRUHWLPHLQWKHKRVSLWDORUGRFWRU¶V
RIILFHWKDQXVXDO
x <RXPD\EHDVNHGVHQVLWLYHRUSULYDWHTXHVWLRQVZKLFK\RXQRUPDOO\GRQRWGLVFXVV
7KHGUXJVXVHGLQWKLVVWXG\PD\DIIHFWKRZGLIIHUHQWSDUWVRI\RXUERG\ZRUNVXFKDV\RXUOLYHU
NLGQH\VKHDUWDQGEORRG7KHVWXG\GRFWRUZLOOEHWHVWLQJ\RXUEORRGDQGZLOOOHW\RXNQRZLI
FKDQJHVRFFXUWKDWPD\DIIHFW\RXUKHDOWK
7KHUHLVDOVRDULVNWKDW\RXFRXOGKDYHVLGHHIIHFWVIURPWKHVWXG\GUXJVVWXG\DSSURDFK
+HUHDUHLPSRUWDQWSRLQWVDERXWVLGHHIIHFWV
x 7KHVWXG\GRFWRUVGRQRWNQRZZKRZLOORUZLOOQRWKDYHVLGHHIIHFWV
x 6RPHVLGHHIIHFWVPD\JRDZD\VRRQVRPHPD\ODVWDORQJWLPHRUVRPHPD\QHYHUJR
DZD\
x 6RPHVLGHHIIHFWVPD\LQWHUIHUHZLWK\RXUDELOLW\WRKDYHFKLOGUHQ
x 6RPHVLGHHIIHFWVPD\EHVHULRXVDQGPD\HYHQUHVXOWLQGHDWK
+HUHDUHLPSRUWDQWSRLQWVDERXWKRZ\RXDQGWKHVWXG\GRFWRUFDQPDNHVLGHHIIHFWVOHVVRID
SUREOHP
x 7HOOWKHVWXG\GRFWRULI\RXQRWLFHRUIHHODQ\WKLQJGLIIHUHQWVRWKH\FDQVHHLI\RXDUH
KDYLQJDVLGHHIIHFW
x 7KHVWXG\GRFWRUPD\EHDEOHWRWUHDWVRPHVLGHHIIHFWV
x 7KHVWXG\GRFWRUPD\DGMXVWWKHVWXG\GUXJVWRWU\WRUHGXFHVLGHHIIHFWV
7KHWDEOHVEHORZVKRZWKHPRVWFRPPRQDQGWKHPRVWVHULRXVVLGHHIIHFWVWKDWUHVHDUFKHUVNQRZ
DERXW7KHUHPLJKWEHRWKHUVLGHHIIHFWVWKDWUHVHDUFKHUVGRQRW\HWNQRZDERXW,ILPSRUWDQWQHZ
VLGHHIIHFWVDUHIRXQGWKHVWXG\GRFWRUZLOOGLVFXVVWKHVHZLWK\RX

:KDWVLGHHIIHFWVRUULVNVFDQ,H[SHFWIURPEHLQJLQWKLVVWXG\"

3RVVLEOH6LGH(IIHFWVRI%RUWH]RPLE
&20021620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJERUWH]RPLEPRUHWKDQDQGXSWRPD\KDYH
x
$QHPLDZKLFKPD\UHTXLUHEORRGWUDQVIXVLRQ
x
&RQVWLSDWLRQGLDUUKHDQDXVHDYRPLWLQJ
x
7LUHGQHVVIHYHU


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


x
,QIHFWLRQ
x
%UXLVLQJEOHHGLQJ
x
/RVVRIDSSHWLWH
x
0XVFOHZHDNQHVV
x
1XPEQHVVWLQJOLQJRUSDLQRIWKHDUPVDQGOHJV

2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJERUWH]RPLEIURPWRPD\KDYH
x
3DLQ
x
+HDUWEXUQ
x
%OHHGLQJIURPPXOWLSOHVLWHV
x
,QWHUQDOEOHHGLQJZKLFKPD\FDXVHEODFNWDUU\VWRRORUEORRGLQYRPLW
x
$WHDURUKROHLQLQWHUQDORUJDQVWKDWPD\UHTXLUHVXUJHU\ZKLFKPD\FDXVHGLIILFXOW\
VZDOORZLQJ
x
&KLOOV
x
6ZHOOLQJRIDUPVOHJV
x
:HLJKWORVV
x
'HK\GUDWLRQ
x
0XVFOHVSDVPV
x
'L]]LQHVVKHDGDFKH
x
)HHOLQJRISLQVDQGQHHGOHVLQDUPVDQGOHJV
x
:RUU\
x
'LIILFXOW\VOHHSLQJ
x
&RXJKVKRUWQHVVRIEUHDWKVRUHWKURDW
x
5DVK
x
/RZEORRGSUHVVXUHZKLFKPD\FDXVHIHHOLQJIDLQW

5$5($1'6(5,286
,QSHRSOHUHFHLYLQJERUWH]RPLERUIHZHUPD\KDYH
x
+HDUWIDLOXUHZKLFKPD\FDXVHVKRUWQHVVRIEUHDWKVZHOOLQJRIDQNOHVDQGWLUHGQHVV
x
$WHDURUKROHLQLQWHUQDORUJDQVWKDWPD\UHTXLUHVXUJHU\ZKLFKPD\FDXVHGLIILFXOW\
VZDOORZLQJ
x
'DPDJHWRRUJDQVZKLFKPD\FDXVHVKRUWQHVVRIEUHDWKRUFKDQJHVLQWKLQNLQJ
x
%UDLQGDPDJHZKLFKPD\FDXVHKHDGDFKHVHL]XUHEOLQGQHVVDOVRNQRZQDV5HYHUVLEOH
3RVWHULRU/HXNRHQFHSKDORSDWK\6\QGURPH
x
.LGQH\GDPDJHZKLFKPD\FDXVHVZHOOLQJPD\UHTXLUHGLDO\VLV





0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


3RVVLEOH6LGH(IIHFWVRI9DQGHWDQLE
&20021620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ9DQGHWDQLEPRUHWKDQDQGXSWRPD\KDYH
x'LDUUKHDQDXVHDORVVRIDSSHWLWH
x3DLQ
x7LUHGQHVV
x+HDGDFKH
x$FQHUDVK
x+LJKEORRGSUHVVXUHZKLFKPD\FDXVHGL]]LQHVVEOXUUHGYLVLRQ

2&&$6,21$/620(0$<%(6(5,286
,QSHRSOHUHFHLYLQJ9DQGHWDQLEIURPWRPD\KDYH
x6HYHUHEORRGLQIHFWLRQ
x&KDQJHLQWKHKHDUWUK\WKP
x%UDLQGDPDJHZKLFKPD\FDXVHKHDGDFKHVHL]XUHEOLQGQHVVDOVRNQRZQDV5HYHUVLEOH
3RVWHULRU/HXNRHQFHSKDORSDWK\6\QGURPH
x'DPDJHWRWKHOXQJVZKLFKPD\FDXVHVKRUWQHVVRIEUHDWK
x(QWU\RIPDWHULDOLQWROXQJZKLFKPD\FDXVHFRXJKLQIHFWLRQ
x6FDUULQJRIWKHOXQJV
x6HYHUHVNLQUDVKZLWKEOLVWHUVDQGFDQLQYROYHLQVLGHRIPRXWKDQGRWKHUSDUWVRIWKHERG\
x%OHHGLQJ

5$5($1'6(5,286
,QSHRSOHUHFHLYLQJ9DQGHWDQLERUIHZHUPD\KDYH
x+HDUWIDLOXUHZKLFKPD\FDXVHVKRUWQHVVRIEUHDWKVZHOOLQJRIDQNOHVDQGWLUHGQHVV
x6WURNHZKLFKPD\FDXVHSDUDO\VLVZHDNQHVV

3RVVLEOH6LGH(IIHFWVIRUWKH&RPELQDWLRQRI%RUWH]RPLEDQG9DQGHWDQLE

7KHVHWZRGUXJVKDYHQRWEHHQJLYHQWRJHWKHULQKXPDQVVRZHGRQRWNQRZDOOWKHSRVVLEOHVLGH
HIIHFWV%RWKGUXJVFDXVHWKHSODWHOHWFRXQWWRGURSVRSHUKDSVZKHQJLYHQWRJHWKHUWKDWHIIHFW
PLJKWEHORZHUWKDQHLWKHURQHVHSDUDWHO\%RWKGUXJVFDXVHJDVWURLQWHVWLQDOVLGHHIIHFWVQDXVHD
YRPLWLQJGLDUUKHDFRQVWLSDWLRQ3HUKDSVWKHVHHIIHFWVPLJKWEHPRUHLQWHQVHGXULQJWKH
FRPELQDWLRQ:HWKLQNWKDWWKHVDPHVLGHHIIHFWVVHHQZLWKHDFKGUXJVHSDUDWHO\ZLOOEHSUHVHQW
ZKHQXVHGWRJHWKHU:HZLOOPRQLWRU\RXFORVHO\DQGDVN\RXWRKHOSXVE\UHSRUWLQJ\RXU


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


V\PSWRPVDQGFRPPXQLFDWLQJZLWKXV<RXZLOOEHDVNHGWRNHHSDGLDU\RI\RXUV\PSWRPVDQG
EULQJLWZLWK\RXWR\RXUDSSRLQWPHQWV

/DVWO\GLDUUKHDLVDFRPPRQV\PSWRPRIVRPHSDWLHQWVZLWKWK\URLGFDQFHU'LDUUKHDLVDOVRD
SRWHQWLDOVLGHHIIHFWRIERWKVWXG\PHGLFDWLRQV,I\RXH[SHULHQFHGLDUUKHDHLWKHUIURP\RXU
GLVHDVHRUIURPWKHVWXG\PHGLFDWLRQV\RXZLOOEHJLYHQPHGLFDWLRQVWRPDQDJHWKHGLDUUKHD$
IHZDQWLGLDUUKHDPHGLFLQHVRFWUHRWLGHDQGODQUHRWLGHPD\DIIHFW\RXUKHDUWUK\WKP7KLVVLGH
HIIHFWPD\RUPD\QRWRFFXULI\RXUHFHLYHHLWKHURIWKHVHDQWLGLDUUKHDPHGLFDWLRQV,QIDFW
VRPHPHGLFDOOLWHUDWXUHKDVUHSRUWHGWKDWWKHVHPHGLFLQHVFDQLPSURYHWKHKHDUWUK\WKP,I\RX
KDYHGLDUUKHDDQGQHHGWRUHFHLYHPHGLFLQHWRPDQDJHWKHGLDUUKHDZHZLOOPRQLWRU\RXUKHDUW
UK\WKPZLWK(.*V
5LVNV$VVRFLDWHGZLWK7HVWVDQG3URFHGXUHV
%ORRGVDPSOHVZLOOEHWDNHQGXULQJ\RXUWUHDWPHQWIRUODERUDWRU\UHVHDUFKDQGWRPRQLWRU\RXU
RUJDQIXQFWLRQV7KHWRWDODPRXQWRIEORRGWDNHQZLOOEHOHVVWKDQPLOOLOLWHUVLQWKHILUVW
ZHHNVZKLFKLVWDEOHVSRRQV7KLVZLOOEHWKHPRVWWKDWZLOOEHURXWLQHO\GUDZQLQDQ\ZHHN
SHULRGDQGLVVLJQLILFDQWO\OHVVWKDQWKHPD[LPXPDPRXQWGHHPHGVDIH$OOWKHUHPDLQLQJZHHNV
ZLOOKDYHOHVVEORRGGUDZV7KHULVNVRIGUDZLQJEORRGLQFOXGHGLVFRPIRUWIURPWKHQHHGOHVWLFN
DQGGL]]LQHVVLI\RXVWDQGXSTXLFNO\7KHVHEORRGWHVWVDUHDUHTXLUHGSDUWRIWKHVWXG\
&7VFDQVZLOOEHGRQHIROORZLQJHYHU\VHFRQGF\FOHWRGHWHUPLQHLIWKHGUXJVDUHKHOSLQJ&7
VFDQVLQYROYHGUDGLDWLRQH[SRVXUH7KHVHVFDQVZRXOGEHGRQHZKHWKHU\RXZHUHSDUWLFLSDWLQJ
LQDFOLQLFDOWULDORUQRWDOWKRXJKSHUKDSVQRWDVIUHTXHQWO\LI\RXZHUHQRWLQDFOLQLFDOWULDO
7KLV UHVHDUFK VWXG\ LQYROYHV H[SRVXUH WR UDGLDWLRQ IURP XS WR  &7GLUHFWHG ELRSVLHV  7KLV
UDGLDWLRQH[SRVXUHLVQRWUHTXLUHGIRU\RXUPHGLFDOFDUHDQGLVIRUUHVHDUFKSXUSRVHVRQO\7KH
DPRXQWRIUDGLDWLRQ\RXZLOOUHFHLYHLQWKLVVWXG\LVUHPZKLFKLVEHORZWKHJXLGHOLQHRI
UHPRUUHPLQFKLOGUHQSHU\HDUDOORZHGIRUUHVHDUFKVXEMHFWVE\WKH1,+5DGLDWLRQ6DIHW\
&RPPLWWHH7KHDYHUDJHSHUVRQLQWKH8QLWHG6WDWHVUHFHLYHVDUDGLDWLRQH[SRVXUHRIUHPSHU
\HDUIURPQDWXUDOVRXUFHVVXFKDVWKHVXQRXWHUVSDFHDQGWKHHDUWK
VDLUDQGVRLO,I\RXZRXOG
OLNHPRUHLQIRUPDWLRQDERXWUDGLDWLRQSOHDVHDVNWKHLQYHVWLJDWRUIRUDFRS\RIWKHSDPSKOHW$Q
,QWURGXFWLRQWR5DGLDWLRQIRU1,+5HVHDUFK6XEMHFWV
:KLOHWKHUHLVQRGLUHFWHYLGHQFHWKDWWKHDPRXQWRIH[SRVXUHUHFHLYHGIURPSDUWLFLSDWLQJLQWKLV
VWXG\LVKDUPIXOWKHUHLVLQGLUHFWHYLGHQFHLWPD\QRWEHFRPSOHWHO\VDIH7KHUHPD\EHDYHU\
VOLJKWLQFUHDVHLQWKHULVNRIFDQFHU
3OHDVHWHOO\RXUGRFWRULI\RXKDYHKDGDQ\UDGLDWLRQH[SRVXUHLQWKHSDVW\HDUHLWKHUIURPRWKHU
UHVHDUFKVWXGLHVRUIURPPHGLFDOWHVWVRUFDUHVRZHFDQPDNHVXUHWKDW\RXZLOOQRWUHFHLYHWRR
PXFK UDGLDWLRQ 5DGLDWLRQ H[SRVXUH LQFOXGHV [UD\V WDNHQ LQ UDGLRORJ\ GHSDUWPHQWV FDUGLDF
FDWKHWHUL]DWLRQDQGIOXRURVFRS\DVZHOODVQXFOHDUPHGLFLQHVFDQVLQZKLFKUDGLRDFWLYHPDWHULDOV
ZHUHLQMHFWHGLQWR\RXUERG\



0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


5HSURGXFWLYH5LVNV

:RPHQRIFKLOGEHDULQJSRWHQWLDO
7KHUHPLJKWEHXQNQRZQULVNVWRWKHXQERUQFKLOGLI\RXDUHRULI\RXEHFRPHSUHJQDQWGXULQJ
WKHVWXG\$SUHJQDQF\WHVWZLOOEHGRQHWRFRQILUPWKDW\RXDUHQRWSUHJQDQWEHIRUH\RXWDNH
SDUWLQWKLVVWXG\,I\RXDUHSUHJQDQW\RXZLOOQRWEHSHUPLWWHGWRSDUWLFLSDWHLQWKLVUHVHDUFK
VWXG\,I\RXDUHEUHDVWIHHGLQJDQGWKHSURWRFROLQYROYHVLQMHFWLRQRIUDGLRDFWLYHPDWHULDO\RX
ZLOOQRWEHSHUPLWWHGWRSDUWLFLSDWH,WLVEHVWWRDYRLGUDGLDWLRQH[SRVXUHWRXQERUQRUQXUVLQJ
LQIDQWVVLQFHWKH\DUHPRUHVHQVLWLYHWRUDGLDWLRQWKDQDGXOWV<RXPXVWDYRLGEHFRPLQJ
SUHJQDQWDQGXVHDQDFFHSWDEOHPHWKRGRIELUWKFRQWUROGXULQJWKLVVWXG\


,IDWDQ\WLPHGXULQJWKLVVWXG\\RXWKLQN\RXPLJKWEHSUHJQDQWRUODWHUOHDUQWKDW\RX
ZHUHSUHJQDQWGXULQJWKHVWXG\\RXPXVWFRQWDFWWKH6WXG\'RFWRULPPHGLDWHO\IRU
IXUWKHULQVWUXFWLRQVDERXW\RXUSDUWLFLSDWLRQLQWKLVVWXG\DQGIROORZXS

0DOHSDWLHQWV
,I\RXDUHDPDOHSDWLHQWWKHVWXG\GUXJVXVHGLQWKLVVWXG\FRXOGDIIHFW\RXUVSHUPDQGFRXOG
SRWHQWLDOO\KDUPDFKLOGWKDW\RXPD\IDWKHUZKLOHLQWKLVVWXG\<RXPXVWDYRLGXQSURWHFWHGVH[
ZLWKDSUHJQDQWSDUWQHURUZRPDQRIFKLOGEHDULQJSRWHQWLDOQRWXVLQJELUWKFRQWURORUGRQDWLQJ
VSHUPGXULQJWKHVWXG\DQGIRUWKUHHPRQWKVIROORZLQJWKHODVWGRVHVLQFHWKHSRWHQWLDOIRU
SUREOHPVZLWKXQERUQFKLOGUHQKDVQRW\HWEHHQWKRURXJKO\LQYHVWLJDWHG0HQVKRXOGXVHD
FRQGRPGXULQJWKHWULDODQGIRUWKUHHPRQWKVIROORZLQJWKHODVWGRVH

,I \RXU SDUWQHU EHFRPHV SUHJQDQW \RX PXVW QRWLI\ WKH VWXG\ GRFWRU RI DQ\ RXWFRPHV RI WKH
SUHJQDQF\IURPWKHGDWHRIWKHILUVWGRVHXQWLOGD\VDIWHUODVWGRVH

3RWHQWLDO%HQHILWVRI3DUWLFLSDWLRQ
$UHWKHUHEHQHILWVWRWDNLQJSDUWLQWKLVVWXG\"
7KHDLPRIWKLVVWXG\LVWRVHHLIWKLVH[SHULPHQWDOWUHDWPHQWZLOOFDXVH\RXUWXPRUVWRVKULQN
:HGRQRW NQRZ LI \RX ZLOO UHFHLYH SHUVRQDO PHGLFDOEHQHILW IURP WDNLQJ SDUW LQ WKLV VWXG\
7KHVHSRWHQWLDOEHQHILWVFRXOGLQFOXGHVKULQNLQJRI\RXUWXPRURUOHVVHQLQJRI\RXUV\PSWRPV
VXFKDVSDLQWKDWDUHFDXVHGE\WKHFDQFHU%HFDXVHWKHUHLVQRWPXFKLQIRUPDWLRQDERXWWKH
GUXJ¶VHIIHFWRQ\RXUFDQFHUZHGRQRWNQRZLI\RXZLOOEHQHILWIURPWDNLQJSDUWLQWKLVVWXG\
DOWKRXJKWKHNQRZOHGJHJDLQHGIURPWKLVVWXG\PD\KHOSRWKHUVLQWKHIXWXUHZKRKDYHFDQFHU
5HVHDUFK6XEMHFW¶V5LJKWV
:KDWDUHWKHFRVWVRIWDNLQJSDUWLQWKLVVWXG\"
,I\RXFKRRVHWRWDNHSDUWLQWKHVWXG\WKHIROORZLQJZLOODSSO\LQNHHSLQJZLWKWKH1,+SROLF\


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


x
<RXZLOOUHFHLYHVWXG\WUHDWPHQWDWQRFKDUJHWR\RX7KLVPD\LQFOXGH
VXUJHU\ PHGLFLQHV ODERUDWRU\ WHVWLQJ [UD\V RU VFDQV GRQH DW WKH
&OLQLFDO&HQWHU1DWLRQDO,QVWLWXWHVRI+HDOWK1,+RUDUUDQJHGIRU\RX
E\WKHUHVHDUFKWHDPWREHGRQHRXWVLGHWKH&OLQLFDO&HQWHU1,+LIWKH
VWXG\UHODWHGWUHDWPHQWLVQRWDYDLODEOHDWWKH1,+
x
7KHUH DUH OLPLWHG IXQGV DYDLODEOH WR FRYHU WKH FRVW RI VRPH WHVWV DQG
SURFHGXUHVSHUIRUPHGRXWVLGHWKH&OLQLFDO&HQWHU1,+<RXPD\KDYH
WRSD\IRUWKHVHFRVWVLIWKH\DUHQRWFRYHUHGE\\RXULQVXUDQFHFRPSDQ\
x
0HGLFLQHVWKDWDUHQRWSDUWRIWKHVWXG\WUHDWPHQWZLOOQRWEHSURYLGHGRU
SDLGIRUE\WKH&OLQLFDO&HQWHU1,+
x
2QFH\RXKDYHFRPSOHWHGWDNLQJSDUWLQWKHVWXG\PHGLFDOFDUHZLOOQR
ORQJHUEHSURYLGHGE\WKH&OLQLFDO&HQWHU1,+
:LOO\RXUPHGLFDOLQIRUPDWLRQEHNHSWSULYDWH"
:HZLOOGRRXUEHVWWRPDNHVXUHWKDWWKHSHUVRQDOLQIRUPDWLRQLQ\RXUPHGLFDOUHFRUGZLOOEH
NHSW SULYDWH  +RZHYHU ZH FDQQRW JXDUDQWHH WRWDO SULYDF\  2UJDQL]DWLRQV WKDW PD\ ORRN DW
DQGRUFRS\\RXUPHGLFDOUHFRUGVIRUUHVHDUFKTXDOLW\DVVXUDQFHDQGGDWDDQDO\VLVLQFOXGH

x 7KH1DWLRQDO&DQFHU,QVWLWXWH1&,DQGRWKHUJRYHUQPHQWDJHQFLHVOLNHWKH)RRGDQG
'UXJ$GPLQLVWUDWLRQ)'$ZKLFKDUHLQYROYHGLQNHHSLQJUHVHDUFKVDIHIRUSHRSOH
x 1DWLRQDO&DQFHU,QVWLWXWH,QVWLWXWLRQDO5HYLHZ%RDUG
x 7KHVWXG\6SRQVRU&DQFHU7KHUDS\(YDOXDWLRQ3URJUDPRUWKHLUDJHQWVRU
&ROODERUDWRUV0LOOHQQLXP3KDUPDFHXWLFDOVDQG$VWUD=HQHFD
$GHVFULSWLRQRIWKLVFOLQLFDOWULDOZLOOEHDYDLODEOHRQKWWSZZZ&OLQLFDOWULDOVJRYDVUHTXLUHG
E\86/DZ7KLV:HEVLWHZLOOQRWLQFOXGHLQIRUPDWLRQWKDWFDQLGHQWLI\\RX$WPRVWWKH
:HEVLWHZLOOLQFOXGHDVXPPDU\RIWKHUHVXOWV<RXFDQVHDUFKWKLV:HEVLWHDWDQ\WLPH
6WRSSLQJ7KHUDS\
<RXUGRFWRUPD\GHFLGHWRVWRS\RXUWKHUDS\IRUWKHIROORZLQJUHDVRQV
x LIKHVKHEHOLHYHVWKDWLWLVLQ\RXUEHVWLQWHUHVW
x LI\RXUGLVHDVHFRPHVEDFNGXULQJWUHDWPHQW
x LI\RXKDYHVLGHHIIHFWVIURPWKHWUHDWPHQWWKDW\RXUGRFWRUWKLQNVDUHWRRVHYHUH
x LIQHZLQIRUPDWLRQVKRZVWKDWDQRWKHUWUHDWPHQWZRXOGEHEHWWHUIRU\RX

,QWKLVFDVH\RXZLOOEHLQIRUPHGRIWKHUHDVRQWKHUDS\LVEHLQJVWRSSHG
<RXFDQVWRSWDNLQJSDUWLQWKHVWXG\DWDQ\WLPH+RZHYHULI\RXGHFLGHWRVWRSWDNLQJSDUWLQ
WKHVWXG\ZHZRXOGOLNH\RXWRWDONWRWKHVWXG\GRFWRUDQG\RXUUHJXODUGRFWRUILUVW


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


,I\RXGHFLGHDWDQ\WLPHWRZLWKGUDZ\RXUFRQVHQWWRSDUWLFLSDWHLQWKHWULDOZHZLOOQRWFROOHFW
DQ\ DGGLWLRQDO PHGLFDO LQIRUPDWLRQ DERXW \RX +RZHYHU DFFRUGLQJ WR )'$ JXLGHOLQHV
LQIRUPDWLRQFROOHFWHGRQ\RXXSWRWKDWSRLQWPD\VWLOOEHSURYLGHGWR&7(3$VWUD=HQHFDRU
0LOOHQQLXP 3KDUPDFHXWLFDOV RU GHVLJQDWHG UHSUHVHQWDWLYHV ,I \RX ZLWKGUDZ \RXU FRQVHQW DQG
OHDYH WKH WULDO DQ\ VDPSOHV RI \RXUV WKDW KDYH EHHQ REWDLQHG IRU WKH VWXG\ DQG VWRUHG DW WKH
1&,FDQEHGHVWUR\HGXSRQUHTXHVW+RZHYHUDQ\VDPSOHVDQGGDWDJHQHUDWHGIURPWKHVDPSOHV
WKDWKDYHDOUHDG\EHHQGLVWULEXWHGWRRWKHUUHVHDUFKHUVRUSODFHGLQWKHUHVHDUFKGDWDEDVHVFDQQRW
EHUHFDOOHGDQGGHVWUR\HG

&RQIOLFWRI,QWHUHVW

7KH1DWLRQDO,QVWLWXWHVRI+HDOWK1,+UHYLHZV1,+VWDIIUHVHDUFKHUVDWOHDVW\HDUO\IRUFRQIOLFWV
RILQWHUHVW7KLVSURFHVVLVGHWDLOHGLQD3URWRFRO5HYLHZ*XLGH<RXPD\DVN\RXUUHVHDUFK
WHDPIRUDFRS\RIWKH3URWRFRO5HYLHZ*XLGHRUIRUPRUHLQIRUPDWLRQ0HPEHUVRIWKHUHVHDUFK
WHDPZKRGRQRWZRUNIRU1,+DUHH[SHFWHGWRIROORZWKHVHJXLGHOLQHVEXWWKH\GRQRWQHHGWR
UHSRUWWKHLUSHUVRQDOILQDQFHVWRWKH1,+

0HPEHUVRIWKHUHVHDUFKWHDPZRUNLQJRQWKLVVWXG\PD\KDYHXSWRRIVWRFNLQWKH
FRPSDQLHVWKDWPDNHSURGXFWVXVHGLQWKLVVWXG\7KLVLVDOORZHGXQGHUIHGHUDOUXOHVDQGLVQRWD
FRQIOLFWRILQWHUHVW
7KH1DWLRQDO,QVWLWXWHVRI+HDOWKDQGWKHUHVHDUFKWHDPIRUWKLVVWXG\DUHXVLQJGUXJVGHYHORSHG
E\$VWUD=HQHFDDQG0LOOHQQLXP3KDUPDFHXWLFDOVWKURXJKDMRLQWVWXG\ZLWK\RXUUHVHDUFKHUVDQG
WKHFRPSDQ\7KHFRPSDQ\DOVRSURYLGHVILQDQFLDOVXSSRUWIRUWKLVVWXG\
2SWLRQDO%LRSV\
7XPRUELRSV\PD\EHGRQHLI\RXDJUHHEHIRUHVWDUWLQJRQWKHVWXG\PHGLFDWLRQVWRKHOSXV
EHWWHUXQGHUVWDQGWKHFDQFHUEXWZLOOQRWEHRIDQ\FOLQLFDOEHQHILWWR\RX7KHWLVVXHREWDLQHG
IURP WKLV ELRSV\ PD\ EH XVHG WR GHWHUPLQH WKH JURZWK PHFKDQLVPV VLJQDOLQJ SDWKZD\V RU
WULJJHUVLQ \RXUWXPRU WRGHWHUPLQHZKDWJHQHVDUHLQ \RXUWXPRUWLVVXHDQGVRPHRIWKH
WLVVXHPD\EHVDYHGIRUSRVVLEOHIXWXUHVWXGLHV
,I\RXKDGSULRUVXUJHU\DQGWKHUHLVIUR]HQWXPRUWLVVXHIURPWKDWWLPHZHPD\EHDEOHWRXVH
WKDWVDPSOHZLWK\RXUSHUPLVVLRQWRSHUIRUPWKHVHWHVWV
$VHFRQGWXPRUELRSV\PD\EHGRQHZKHQSRVVLEOHLI\RXDJUHH,QSDWLHQWVZLWKWK\URLG
FDQFHU WKH QG ELRSV\ ZLOO EH GRQH DW WKH  ZHHN HYDOXDWLRQ DSSUR[LPDWHO\  GD\V DIWHU
EHJLQQLQJWRORRNDWWKHWXPRUVLJQDOLQJSDWKZD\VLQWK\URLGWXPRUV,QSDWLHQWVZLWKFDQFHU
RWKHUWKDQWK\URLGFDQFHUWKHQGELRSV\ZLOOEHREWDLQHGRQ'D\RIHLWKHUWKHVWRUQGF\FOH
DIWHUWKHERUWH]RPLELQIXVLRQ7KLVELRSV\LVORRNLQJDWWKHFHOOVWUXFWXUHZLWKLQWKHWXPRUWR
GHWHUPLQHZKDWHIIHFWERUWH]RPLEKDVKDG<RXPD\SDUWLFLSDWHLQWKHVWXG\ZKHWKHURUQRW
\RXKDYHWKHVHELRSVLHV


0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


3OHDVHQRWH WKDW ZH ZLOO RQO\ ORRN LQ \RXUWXPRUIRUPXWDWLRQV LQ WKH 5(7 JHQH WKDW LV VR
LPSRUWDQWLQ07&:HZLOOQRWEHORRNLQJLQDQ\QRUPDOFHOOVIURP\RXDQGWKHUHIRUHZLOO
REWDLQQRLQIRUPDWLRQRQ\RXUJHQHWLFSUHGLVSRVLWLRQWRWKLVGLVHDVHRUZKHWKHU\RXFDQSDVVLW
RQ7KLVODWWHULQIRUPDWLRQLVRIWHQFDOOHGJHUPOLQHWHVWLQJDQGZHZLOOQRWEHGRLQJWKLV,I
\RXZRXOGOLNHZHFDQJLYH\RXPRUHLQIRUPDWLRQRQKRZWRJRDERXWSXUVXLQJWKLV

7KHELRSV\WREHSHUIRUPHGLVH[FOXVLYHO\IRUUHVHDUFKSXUSRVHVDQGZLOOQRWEHQHILW\RX,W
PLJKWKHOSRWKHUSHRSOHLQWKHIXWXUH(YHQLI\RXVLJQ\HVWRKDYHWKHELRSV\\RXFDQFKDQJH
\RXUPLQGDWDQ\WLPH3OHDVHUHDGHDFKVHQWHQFHEHORZDQGWKLQNDERXW\RXUFKRLFH$IWHU
UHDGLQJHDFKVHQWHQFHFLUFOHDQGLQLWLDOWKHDQVZHUWKDWLVULJKWIRU\RX7KHGHFLVLRQWR
SDUWLFLSDWHLQWKLVSDUWRIWKHUHVHDUFKLVRSWLRQDODQGQRPDWWHUZKDW\RXGHFLGHWRGRLWZLOOQRW
DIIHFW\RXUFDUH

,JLYHSHUPLVVLRQ
7RXVHWKHSUHH[LVWLQJVDPSOH
7RKDYHDELRSV\LIWKHUHLVQRSUHYLRXVVDPSOHSULRUWRWUHDWPHQW
7RKDYHDVHFRQGELRSV\DIWHUWUHDWPHQWVWDUWV

<(6BBBB12BBBBB,QLWLDOVBBBBBBBBBBB


2SWLRQDO6WXGLHV

:HZRXOGOLNHWRNHHSVRPHRIWKHVSHFLPHQVDQGGDWDWKDWDUHFROOHFWHGIRUIXWXUHUHVHDUFK
7KHVHVSHFLPHQVDQGGDWDZLOOEHLGHQWLILHGE\DQXPEHUDQGQRW\RXUQDPH7KHXVHRI\RXU
VSHFLPHQVDQGGDWDZLOOEHIRUUHVHDUFKSXUSRVHVRQO\DQGZLOOQRWEHQHILW\RX,WLVDOVR
SRVVLEOHWKDWWKHVWRUHGVSHFLPHQVDQGGDWDPD\QHYHUEHXVHG5HVXOWVRIUHVHDUFKGRQHRQ\RXU
VSHFLPHQVDQGGDWDZLOOQRWEHDYDLODEOHWR\RXRU\RXUGRFWRU,WPLJKWKHOSSHRSOHZKRKDYH
FDQFHUDQGRWKHUGLVHDVHVLQWKHIXWXUH

,I\RXGHFLGHQRZWKDW\RXUVSHFLPHQVDQGGDWDFDQEHNHSWIRUUHVHDUFK\RXFDQFKDQJH\RXU
PLQGDWDQ\WLPH-XVWFRQWDFWXVDQGOHWXVNQRZWKDW\RXGRQRWZDQWXVWRXVH\RXUVSHFLPHQV
DQGRUGDWD7KHQDQ\VSHFLPHQVWKDWUHPDLQZLOOEHGHVWUR\HGDQG\RXUGDWDZLOOQRWEHXVHG
IRUIXWXUHUHVHDUFK

3OHDVHUHDGHDFKVHQWHQFHEHORZDQGWKLQNDERXW\RXUFKRLFH$IWHUUHDGLQJHDFKVHQWHQFHFLUFOH
DQGLQLWLDOWKHDQVZHUWKDWLVULJKWIRU\RX1RPDWWHUZKDW\RXGHFLGHWRGRLWZLOOQRWDIIHFW
\RXUFDUH



0(',&$/5(&25'
&217,18$7,216+((7IRUHLWKHU
1,+&RQVHQWWR3DUWLFLSDWHLQ$&OLQLFDO5HVHDUFK6WXG\
1,+0LQRU3DWLHQW¶V$VVHQWWR3DUWLFLSDWH,Q$&OLQLFDO5HVHDUFK6WXG\
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&217,18$7,216+((7IRUHLWKHU
1,+
1,+
3$
)LOHLQ6HFWLRQ3URWRFRO&RQVHQW


0\VSHFLPHQVDQGGDWDPD\EHNHSWIRUXVHLQUHVHDUFKWROHDUQDERXWSUHYHQWRUWUHDWFDQFHU
RURWKHUKHDOWKSUREOHPV

<HV1R,QLWLDOVBBBBBBBBB

6RPHRQHPD\FRQWDFWPHLQWKHIXWXUHWRDVNSHUPLVVLRQWRXVHP\VSHFLPHQVDQGRUGDWDLQ
QHZUHVHDUFKQRWLQFOXGHGLQWKLVFRQVHQW

<HV1R,QLWLDOVBBBBBBBBB





0(',&$/5(&25'
&216(17723$57,&,3$7(,1$&/,1,&$/5(6($5&+678'<

$GXOW3DWLHQWRU
 3DUHQWIRU0LQRU3DWLHQW
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&216(17723$57,&,3$7(,1$&/,1,&$/5(6($5&+
678'<&RQWLQXDWLRQ6KHHW

$GXOW3DWLHQWRU
 3DUHQWIRU0LQRU3DWLHQW
1,+
3$

)LOHLQ6HFWLRQ3URWRFRO&RQVHQW



27+(53(57,1(17,1)250$7,21

&RQILGHQWLDOLW\:KHQUHVXOWVRIDQ1,+UHVHDUFKVWXG\DUHUHSRUWHGLQPHGLFDOMRXUQDOV
RUDWVFLHQWLILFPHHWLQJVWKHSHRSOHZKRWDNHSDUWDUHQRWQDPHGDQGLGHQWLILHG,QPRVWFDVHV
WKH1,+ZLOOQRWUHOHDVHDQ\LQIRUPDWLRQDERXW\RXUUHVHDUFKLQYROYHPHQWZLWKRXW\RXUZULWWHQ
SHUPLVVLRQ+RZHYHULI\RXVLJQDUHOHDVHRILQIRUPDWLRQIRUPIRUH[DPSOHIRUDQLQVXUDQFH
FRPSDQ\WKH1,+ZLOOJLYHWKHLQVXUDQFHFRPSDQ\LQIRUPDWLRQIURP\RXUPHGLFDOUHFRUG7KLV
LQIRUPDWLRQ PLJKW DIIHFW HLWKHU IDYRUDEO\ RU XQIDYRUDEO\ WKH ZLOOLQJQHVV RI WKH LQVXUDQFH
FRPSDQ\WRVHOO\RXLQVXUDQFH
7KH)HGHUDO3ULYDF\$FWSURWHFWVWKHFRQILGHQWLDOLW\RI\RXU1,+PHGLFDOUHFRUGV+RZHYHU\RX
VKRXOGNQRZWKDWWKH$FWDOORZVUHOHDVHRIVRPHLQIRUPDWLRQIURP\RXUPHGLFDOUHFRUGZLWKRXW
\RXU SHUPLVVLRQ IRU H[DPSOH LI LW LV UHTXLUHG E\ WKH )RRG DQG 'UXJ $GPLQLVWUDWLRQ )'$
PHPEHUV RI &RQJUHVV ODZ HQIRUFHPHQW RIILFLDOV RU DXWKRUL]HG KRVSLWDO DFFUHGLWDWLRQ
RUJDQL]DWLRQV

3ROLF\5HJDUGLQJ5HVHDUFK5HODWHG,QMXULHV7KH&OLQLFDO&HQWHUZLOOSURYLGHVKRUW
WHUPPHGLFDOFDUHIRUDQ\LQMXU\UHVXOWLQJIURP\RXUSDUWLFLSDWLRQLQUHVHDUFKKHUH,QJHQHUDO
QR ORQJWHUP PHGLFDO FDUH RU ILQDQFLDO FRPSHQVDWLRQ IRU UHVHDUFKUHODWHG LQMXULHV ZLOO EH
SURYLGHGE\WKH1DWLRQDO,QVWLWXWHVRI+HDOWKWKH&OLQLFDO&HQWHURUWKH)HGHUDO*RYHUQPHQW
+RZHYHU\RXKDYHWKHULJKWWRSXUVXHOHJDOUHPHG\LI\RXEHOLHYHWKDW\RXULQMXU\MXVWLILHVVXFK
DFWLRQ

3D\PHQWV  7KH DPRXQW RI SD\PHQW WR UHVHDUFK YROXQWHHUV LV JXLGHG E\ WKH 1DWLRQDO
,QVWLWXWHVRI+HDOWKSROLFLHV,QJHQHUDOSDWLHQWVDUHQRWSDLGIRUWDNLQJSDUWLQUHVHDUFKVWXGLHVDW
WKH 1DWLRQDO ,QVWLWXWHV RI +HDOWK  5HLPEXUVHPHQW RI WUDYHO DQG VXEVLVWHQFH ZLOO EH RIIHUHG
FRQVLVWHQWZLWK1,+JXLGHOLQHV

3UREOHPV RU 4XHVWLRQV  ,I \RX KDYH DQ\ SUREOHPV RU TXHVWLRQV DERXW WKLV VWXG\ RU
DERXW \RXU ULJKWV DV D UHVHDUFK SDUWLFLSDQW RU DERXW DQ\ UHVHDUFKUHODWHG LQMXU\ FRQWDFW WKH
3ULQFLSDO ,QYHVWLJDWRU 5DYL 0DGDQ 0' %XLOGLQJ  5RRP  7HOHSKRQH  
2WKHUUHVHDUFKHUV\RXPD\FDOODUH0DXUHHQ(GJHUO\517HOHSKRQH<RX
PD\ DOVR FDOO WKH &OLQLFDO &HQWHU 3DWLHQW 5HSUHVHQWDWLYH DW  ,I \RX KDYH DQ\
TXHVWLRQV DERXW WKH XVH RI \RXU VSHFLPHQV RU GDWD IRU IXWXUH UHVHDUFK VWXGLHV \RX PD\ DOVR
FRQWDFWWKH2IILFHRIWKH&OLQLFDO'LUHFWRU7HOHSKRQH

&RQVHQW'RFXPHQW3OHDVHNHHSDFRS\RIWKLVGRFXPHQWLQFDVH\RXZDQWWRUHDGLW
DJDLQ


0(',&$/5(&25'
&216(17723$57,&,3$7(,1$&/,1,&$/5(6($5&+678'<

$GXOW3DWLHQWRU
 3DUHQWIRU0LQRU3DWLHQW
678'<180%(5&
&217,18$7,21SDJHRISDJHV

3$7,(17,'(17,),&$7,21
&216(17723$57,&,3$7(,1$&/,1,&$/5(6($5&+
678'<&RQWLQXDWLRQ6KHHW

$GXOW3DWLHQWRU
 3DUHQWIRU0LQRU3DWLHQW
1,+
3$

)LOHLQ6HFWLRQ3URWRFRO&RQVHQW





&203/(7($335235,$7(,7(06%(/2:
$ $GXOW3DWLHQW¶V&RQVHQW
% 3DUHQW¶V3HUPLVVLRQIRU0LQRU3DWLHQW
,KDYHUHDGWKHH[SODQDWLRQDERXWWKLVVWXG\
DQGKDYHEHHQJLYHQWKHRSSRUWXQLW\WRGLVFXVV
LWDQGWRDVNTXHVWLRQV,KHUHE\FRQVHQWWR
WDNHSDUWLQWKLVVWXG\
,KDYHUHDGWKHH[SODQDWLRQDERXWWKLVVWXG\
DQGKDYHEHHQJLYHQWKHRSSRUWXQLW\WRGLVFXVV
LWDQGWRDVNTXHVWLRQV,KHUHE\JLYH
SHUPLVVLRQIRUP\FKLOGWRWDNHSDUWLQWKLV
VWXG\
$WWDFK1,+0LQRU¶V$VVHQWLI
DSSOLFDEOH

 
 



6LJQDWXUHRI$GXOW3DWLHQW
/HJDO5HSUHVHQWDWLYH
'DWH
6LJQDWXUHRI3DUHQWV*XDUGLDQ 'DWH


3ULQW1DPH


3ULQW1DPH
& &KLOG¶V9HUEDO$VVHQW,I$SSOLFDEOH
7KH LQIRUPDWLRQ LQ WKH DERYH FRQVHQW ZDV GHVFULEHG WR P\ FKLOG DQG P\ FKLOG DJUHHV WR
SDUWLFLSDWHLQWKHVWXG\

 
 

6LJQDWXUHRI3DUHQWV*XDUGLDQ
'DWH
3ULQW1DPH
7+,6&216(17'2&80(17+$6%((1$33529(')2586(
)520-81(7+528*+-81(








6LJQDWXUHRI,QYHVWLJDWRU
'DWH
6LJQDWXUHRI:LWQHVV
'DWH


3ULQW1DPH


3ULQW1DPH
