7ULFKRPRQLDVLV

2IILFLDOUHSULQWIURP8S7R'DWH
ZZZXSWRGDWHFRP8S7R'DWH

7ULFKRPRQLDVLV
$XWKRU
-DFN'6REHO0'

6HFWLRQ(GLWRU
5REHUW/%DUELHUL0'

'HSXW\(GLWRU
.ULVWHQ(FNOHU0')$&2*

$OOWRSLFVDUHXSGDWHGDVQHZHYLGHQFHEHFRPHVDYDLODEOHDQGRXUSHHUUHYLHZSURFHVVLVFRPSOHWH
/LWHUDWXUHUHYLHZFXUUHQWWKURXJK6HS_7KLVWRSLFODVWXSGDWHG-XO
,1752'8&7,217ULFKRPRQLDVLVLVDJHQLWRXULQDU\LQIHFWLRQZLWKWKHSURWR]RDQ7ULFKRPRQDVYDJLQDOLV,W
LVWKHPRVWFRPPRQQRQYLUDOVH[XDOO\WUDQVPLWWHGGLVHDVH67'ZRUOGZLGH:RPHQDUHDIIHFWHGPRUH
RIWHQWKDQPHQ7ULFKRPRQLDVLVLVRQHRIWKHWKUHHPDMRUFDXVHVRIYDJLQDOFRPSODLQWVDPRQJUHSURGXFWLYH
DJHGZRPHQDORQJZLWKEDFWHULDOYDJLQRVLVDQGFDQGLGDYXOYRYDJLQLWLV>@DQGDFDXVHRIXUHWKULWLVLQPHQ
KRZHYHUWKHLQIHFWLRQLVRIWHQDV\PSWRPDWLF
0,&52%,2/2*<$1'75$160,66,217KHRUJDQLVPUHVSRQVLEOHIRUWULFKRPRQLDVLVLVWKHIODJHOODWHG
SURWR]RDQ7ULFKRPRQDVYDJLQDOLVZKLFKSULQFLSDOO\LQIHFWVWKHVTXDPRXVHSLWKHOLXPLQWKHXURJHQLWDOWUDFW
YDJLQDXUHWKUDDQGSDUDXUHWKUDOJODQGV>@2WKHUOHVVFRPPRQVLWHVLQFOXGHWKHFHUYL[EODGGHU%DUWKROLQ
JODQGVDQGSURVWDWH+XPDQVDUHWKHRQO\QDWXUDOKRVW
7ULFKRPRQLDVLVLVYLUWXDOO\DOZD\VVH[XDOO\WUDQVPLWWHG$OWKRXJKVXUYLYDORQIRPLWHVKDVEHHQUHSRUWHG
IRPLWHVKDYHQRSURYHQUROHLQWUDQVPLVVLRQ:RPHQFDQDFTXLUHWKHGLVHDVHIURPRWKHUZRPHQEXWPHQGR
QRWXVXDOO\WUDQVPLWWKHLQIHFWLRQWRRWKHUPHQ
7KHLQFXEDWLRQSHULRGLVXQNQRZQKRZHYHULQYLWURVWXGLHVVXJJHVWDQLQFXEDWLRQSHULRGRIWRGD\VLQ
DERXWSHUFHQWRISDWLHQWV>@
&RH[LVWHQFHRI7YDJLQDOLVDQGEDFWHULDOYDJLQRVLVSDWKRJHQVLVFRPPRQZLWKFRLQIHFWLRQUDWHVRIWR
SHUFHQW>@
35(9$/(1&(7ULFKRPRQDOLQIHFWLRQGRHVQRWQHHGWREHUHSRUWHGWRSXEOLFKHDOWKDXWKRULWLHVVR
SUHYDOHQFHLVGLIILFXOWWRGHWHUPLQH3UHYDOHQFHHVWLPDWHVYDU\DFFRUGLQJWRWKHSRSXODWLRQVWXGLHGDQG
PHWKRGXVHGIRUGLDJQRVLV
7KHEHVWHVWLPDWHRIWKHSUHYDOHQFHRIWULFKRPRQLDVLVLQUHSURGXFWLYHDJHGZRPHQLQWKH8QLWHG6WDWHVZDV
SURYLGHGE\WKH1DWLRQDO+HDOWKDQG1XWULWLRQ([DPLQDWLRQ6XUYH\1+$1(6LQZKLFKDQDWLRQDOO\
UHSUHVHQWDWLYHVDPSOHRIZRPHQDJHGWR\HDUVVHOIFROOHFWHGYDJLQDOVZDEVSHFLPHQVWKDWZHUH
VXEVHTXHQWO\HYDOXDWHGIRU7YDJLQDOLVE\SRO\PHUDVHFKDLQUHDFWLRQ3&5>@7KHRYHUDOOSUHYDOHQFHRI7
YDJLQDOLVZDVSHUFHQWDQGLQFUHDVHGZLWKDJH3UHYDOHQFHZDVKLJKHVWLQQRQ+LVSDQLFEODFNZRPHQ
SHUFHQWDQGORZHVWLQQRQ+LVSDQLFZKLWHZRPHQSHUFHQW
7KHRYHUDOOSUHYDOHQFHRI7YDJLQDOLVZDVKLJKHUSHUFHQWLQDVWXG\RIZRPHQWHVWHGE\DQXFOHLFDFLG
DPSOLILFDWLRQWHVWLQFOLQLFDOVHWWLQJVDQGYDULHGIURPWRSHUFHQWLQIDPLO\SODQQLQJLQWHUQDO
PHGLFLQHIDPLO\SUDFWLFHDQGREVWHWULFDQGJ\QHFRORJ\RIILFHVWRSHUFHQWLQSULVRQVDQGVH[XDOO\
WUDQVPLWWHGGLVHDVH67'FOLQLFV>@,QFRQWUDVWWRWKH1+$1(6WKHVHZRPHQZHUHWHVWHGEHFDXVHRI
V\PSWRPVRUWKHSUHVHQFHRIULVNIDFWRUVIRUFKODP\GLDRUJRQRUUKHD/DVWO\DVWXG\LQ67'FOLQLFV
SDUWLFLSDWLQJLQWKH67'6XUYHLOODQFH1HWZRUN66X1UHSRUWHGWKHSUHYDOHQFHRI7YDJLQDOLVZDVSHUFHQW
DPRQJV\PSWRPDWLFZRPHQWHVWHGSHUFHQWDPRQJDV\PSWRPDWLFZRPHQVFUHHQHGDQG
SHUFHQWDPRQJ+,9LQIHFWHGZRPHQWHVWHGVFUHHQHG>@
7YDJLQDOLVFDQEHLGHQWLILHGLQSHUFHQWRIWKHPDOHVH[XDOSDUWQHUVRILQIHFWHGZRPHQ>@DOWKRXJK
FDUULDJHLQPHQLVRIWHQVHOIOLPLWHGVHH
6H[SDUWQHUV
EHORZ$VWXG\XVLQJDQHGXFDWLRQDOLQWHUQHW
SURJUDPWRRIIHUVH[XDOO\DFWLYHPHQIUHHQXFOHLFDFLGDPSOLILFDWLRQWHVWVIRU7YDJLQDOLVRQVHOIFROOHFWHG
VSHFLPHQVUHSRUWHGDQRYHUDOOSUHYDOHQFHRISHUFHQWDPRQJWKHPHQDQGWKHKLJKHVWSUHYDOHQFH
E\DJHJURXSZDVLQPHQDJHGWR\HDUVSHUFHQW>@

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

&/,1,&$/)($785(6
:RPHQ,QZRPHQWULFKRPRQLDVLVUDQJHVIURPDQDV\PSWRPDWLFFDUULHUVWDWHWRDQDFXWHVHYHUH
LQIODPPDWRU\GLVHDVH$VPDQ\DVSHUFHQWRILQIHFWHGZRPHQDUHDV\PSWRPDWLFDOWKRXJKPDQ\RIWKHVH
ZRPHQHYHQWXDOO\EHFRPHV\PSWRPDWLF$V\PSWRPDWLFFDUULDJHFDQSHUVLVWIRUSURORQJHGSHULRGVRIWLPHDW
OHDVWWKUHHPRQWKVWKXVLWLVRIWHQQRWSRVVLEOHWRDVFHUWDLQZKHQRUIURPZKRPWKHLQIHFWLRQZDVDFTXLUHG
>@
9DJLQLWLV&RPPRQVLJQVDQGV\PSWRPVRIDFXWHLQIHFWLRQLQFOXGHDSXUXOHQWPDORGRURXVWKLQ
GLVFKDUJHDVVRFLDWHGZLWKEXUQLQJSUXULWXVG\VXULDIUHTXHQF\ORZHUDEGRPLQDOSDLQRUG\VSDUHXQLD
6\PSWRPVPD\EHZRUVHGXULQJPHQVWUXDWLRQ>@3RVWFRLWDOEOHHGLQJFDQRFFXU
3K\VLFDOH[DPLQDWLRQRIWHQUHYHDOVHU\WKHPDRIWKHYXOYDDQGYDJLQDOPXFRVD7KHFODVVLFDOO\GHVFULEHG
JUHHQ\HOORZIURWK\PDORGRURXVGLVFKDUJHRFFXUVLQWRSHUFHQWRIV\PSWRPDWLFZRPHQ3XQFWDWH
KHPRUUKDJHVPD\EHYLVLEOHRQWKHYDJLQDDQGFHUYL[VWUDZEHUU\FHUYL[LQSHUFHQWRIFDVHVSLFWXUH
,QFKURQLFLQIHFWLRQVLJQVDQGV\PSWRPVDUHPLOGHUDQGPD\LQFOXGHSUXULWXVDQGG\VSDUHXQLDZLWKVFDQW\
YDJLQDOVHFUHWLRQ
0HQ,QPHQ7YDJLQDOLVLQIHFWLRQLVDV\PSWRPDWLFLQRYHUWKUHHTXDUWHUVRIFDVHVDQGRIWHQWUDQVLHQW
VSRQWDQHRXVUHVROXWLRQZLWKLQGD\V>@+RZHYHUXQWUHDWHGLQIHFWLRQFDQSHUVLVWIRUPRQWKV>@
6\PSWRPVZKHQSUHVHQWDUHWKHVDPHDVWKRVHIRUXUHWKULWLVIURPDQ\FDXVHDQGFRQVLVWRIDFOHDURU
PXFRSXUXOHQWXUHWKUDOGLVFKDUJHDQGRUG\VXULD7KH\PD\DOVRKDYHPLOGSUXULWXVRUEXUQLQJVHQVDWLRQLQ
WKHSHQLVDIWHUVH[XDOLQWHUFRXUVH6HH8UHWKULWLVLQDGXOWPHQVHFWLRQRQ
&OLQLFDOPDQLIHVWDWLRQV

&216(48(1&(6
:RPHQ8QWUHDWHGWULFKRPRQDOYDJLQLWLVPD\SURJUHVVWRXUHWKULWLVRUF\VWLWLV,QDGGLWLRQ7YDJLQDOLVKDV
EHHQDVVRFLDWHGZLWKDUDQJHRIDGYHUVHUHSURGXFWLYHKHDOWKRXWFRPHVLQFOXGLQJFHUYLFDOQHRSODVLD>@
SRVWK\VWHUHFWRP\FXIIFHOOXOLWLVRUDEVFHVV>@SHOYLFLQIODPPDWRU\GLVHDVHLQZRPHQLQIHFWHGZLWKKXPDQ
LPPXQRGHILFLHQF\YLUXV+,9>@DQGLQIHUWLOLW\>@,WPD\DOVRLQFUHDVHZRPHQ
VVXVFHSWLELOLW\WR+,9
LQIHFWLRQE\XSWRWZRIROG>@7ULFKRPRQLDVLVLQ+,9LQIHFWHGLQGLYLGXDOVLVDVVRFLDWHGZLWKDQLQFUHDVHG
ULVNRI+,9WUDQVPLVVLRQWRXQLQIHFWHGSDUWQHUV>@7KHUHLVVRPHHYLGHQFHWKDWWUHDWPHQWRI
WULFKRPRQLDVLVUHGXFHV+,9VKHGGLQJ>@
3UHJQDQF\7YDJLQDOLVLQIHFWLRQGXULQJSUHJQDQF\LVDVVRFLDWHGZLWKDGYHUVHRXWFRPHVLQFOXGLQJ
SUHPDWXUHUXSWXUHRIWKHPHPEUDQHVSUHWHUPGHOLYHU\DQGGHOLYHU\RIDORZELUWKZHLJKWLQIDQW>@,QD
V\VWHPDWLFUHYLHZDQGPHWDDQDO\VLVRIWKHDVVRFLDWLRQEHWZHHQ7YDJLQDOLVDQGSHULQDWDORXWFRPHV
WKHULVNRISUHWHUPELUWKZDVLQFUHDVHGE\SHUFHQWDPRQJLQIHFWHGZRPHQ55&,
QLQHVWXGLHV>@7KHULVNVRISUHPDWXUHUXSWXUHRIPHPEUDQHVDQGGHOLYHU\RIDVPDOOIRUJHVWDWLRQDODJH
LQIDQWZHUHVLPLODUO\LQFUHDVHGEXWHDFKRIWKHVHILQGLQJVZDVEDVHGRQRQO\WZRVWXGLHV:KHWKHUWUHDWPHQW
LQSUHJQDQF\DIIHFWVWKHVHULVNVSRVLWLYHO\RUQHJDWLYHO\LVXQFOHDU>@6HH
3UHJQDQWZRPHQ
EHORZ
,QIDQWVERUQWRLQIHFWHGPRWKHUVPD\FRQWUDFWLQIHFWLRQGXULQJGHOLYHU\6LJQVDQGV\PSWRPVLQQHRQDWHV
PD\LQFOXGHIHYHUUHVSLUDWRU\SUREOHPVXULQDU\WUDFWLQIHFWLRQQDVDOGLVFKDUJHDQGLQJLUOVYDJLQDO
GLVFKDUJH>@7UHDWPHQWRIDV\PSWRPDWLFLQIDQWVLVQRWQHFHVVDU\DVVSRQWDQHRXVUHVROXWLRQZLOORFFXU
ZKHQHVWURJHQOHYHOVZDQHWRQRUPDOSUHSXEHVFHQWOHYHOV>@6HH9XOYRYDJLQDOFRPSODLQWVLQWKH
SUHSXEHUWDOFKLOG
0HQ7YDJLQDOLVLQPHQKDVEHHQDVVRFLDWHGZLWKSURVWDWLWLVEDODQRSRVWKLWLVHSLGLG\PLWLVLQIHUWLOLW\DQG
SURVWDWHFDQFHU6HH$SSURDFKWRG\VXULDLQWKHDGXOWPDQDQG5LVNIDFWRUVIRUSURVWDWHFDQFHUVHFWLRQ
RQ
7ULFKRPRQDVYDJLQDOLVLQIHFWLRQ

',$*126,6
:RPHQ7KHGLDJQRVLVRI7ULFKRPRQDVYDJLQDOLVLVEDVHGRQODERUDWRU\WHVWLQJPRWLOHWULFKRPRQDGVRQ
ZHWPRXQWSRVLWLYHFXOWXUHSRVLWLYHQXFOHLFDFLGDPSOLILFDWLRQWHVWRUSRVLWLYHUDSLGDQWLJHQRUQXFOHLFDFLG

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

SUREHWHVW%HFDXVHPLFURVFRS\LVDNH\VWHSLQWKHHYDOXDWLRQRIYDJLQDOGLVFKDUJHLWLVRIWHQWKHILUVWVWHS
LQWKHGLDJQRVWLFHYDOXDWLRQIRUWULFKRPRQLDVLV0LFURVFRS\LVFRQYHQLHQWDQGORZFRVW1XFOHLFDFLG
DPSOLILFDWLRQWHVWV1$$7FDQWKHQEHGRQHIRUZRPHQZLWKQRQGLDJQRVWLFRUQHJDWLYHZHWPRXQWV,I
1$$7LVQRWDYDLODEOHUDSLGGLDJQRVWLFNLWVRUFXOWXUHDUHWKHQSHUIRUPHG7KHFKRLFHRIWHVWLVEDVHGRQ
DYDLODELOLW\
$VZLWKRWKHUW\SHVRIYDJLQLWLVQRQHRIWKHFOLQLFDOIHDWXUHVRIWULFKRPRQLDVLVLVVXIILFLHQWO\VHQVLWLYHRU
VSHFLILFWRDOORZDGLDJQRVLVEDVHGXSRQVLJQVDQGV\PSWRPVDORQHWDEOH>@,QRQHVWXG\LIWKH
FODVVLFFOLQLFDOIHDWXUHVRIWULFKRPRQLDVLVLQZRPHQZHUHXVHGDORQHIRUGLDJQRVLVSHUFHQWRILQIHFWHG
ZRPHQZRXOGQRWEHGLDJQRVHGDQGSHUFHQWRIXQLQIHFWHGZRPHQZRXOGEHIDOVHO\GLDJQRVHGDVLQIHFWHG
>@
:RPHQXQGHUJRLQJWHVWLQJIRUWULFKRPRQLDVLVDUHJHQHUDOO\WHVWHGIRUFKODP\GLDDQGJRQRUUKHDLQIHFWLRQVDV
ZHOO7KHGLDJQRVWLFDSSURDFKWRZRPHQZLWKYDJLQDOGLVFKDUJHLVUHYLHZHGVHSDUDWHO\6HH$SSURDFKWR
ZRPHQZLWKV\PSWRPVRIYDJLQLWLVDQG6FUHHQLQJIRUVH[XDOO\WUDQVPLWWHGLQIHFWLRQVVHFWLRQRQ
6FUHHQLQJ
UHFRPPHQGDWLRQV

0LFURVFRS\DQGS+7KHSUHVHQFHRIPRWLOHWULFKRPRQDGVRQZHWPRXQWLVGLDJQRVWLFRILQIHFWLRQEXW
WKH\DUHLGHQWLILHGLQRQO\WRSHUFHQWRIFXOWXUHFRQILUPHGFDVHVSLFWXUH>@7KHPRWLRQLVMHUN\
DQGVSLQQLQJPRYLHDQGPRYLHRUJDQLVPVUHPDLQPRWLOHIRUWRPLQXWHVDIWHUFROOHFWLRQRIWKH
VDPSOH2WKHUILQGLQJVWKDWDUHDOPRVWLQYDULDEO\SUHVHQWZLWK7YDJLQDOLVLQIHFWLRQEXWQRQGLDJQRVWLF
LQFOXGHDQHOHYDWHGYDJLQDOS+!DQGDQLQFUHDVHLQSRO\PRUSKRQXFOHDUOHXNRF\WHVRQVDOLQH
PLFURVFRS\
)L[DWLRQDQGVWDLQLQJLVQRWXVHIXOEHFDXVH7YDJLQDOLVPD\QRWKDYHWKHW\SLFDOSHDUVKDSHGIODJHOODWHG
IRUPLQVWHDGLWPD\UHVHPEOHSRO\PRUSKRQXFOHDUOHXNRF\WHVRUORVHPRUSKRORJLFFKDUDFWHULVWLFVGXULQJ
IL[DWLRQDQGVWDLQLQJPDNLQJWKHHWLRORJLFLGHQWLILFDWLRQGLIILFXOW>@
1XFOHLFDFLGDPSOLFILFDWLRQWHVW1$$7VGHWHFW51$E\WUDQVFULSWLRQPHGLDWHGDPSOLILFDWLRQ
SRO\PHUDVHFKDLQUHDFWLRQ>3&5@RUUHYHUVHWUDQVFULSWDVH>@DUHKLJKO\VHQVLWLYHDQGVSHFLILFDQGKDYH
EHFRPHWKHDFFHSWHGJROGVWDQGDUGIRUWKHGLDJQRVLVRI7YDJLQDOLV7HVWOLPLWDWLRQVLQFOXGHWKHQHHGIRU
LQVWUXPHQWDWLRQDQGODERUDWRU\DQDO\VLV
$37,0$7ULFKRPRQDVYDJLQDOLVDVVD\*HQ3UREH7KH$37,0$7YDJLQDOLVDVVD\XVHVWDUJHW
FDSWXUHDQGWUDQVFULSWLRQPHGLDWHGQXFOHLFDFLGDPSOLILFDWLRQWRGHWHFWVSHFLHVVSHFLILFULERQXFOHLFDFLG
51$LQFOXGLQJ1JRQRUUKRHDH&WUDFKRPDWLVDQG7YDJLQDOLVRQDVLQJOHYDJLQDOVZDERUXULQH
VSHFLPHQ>@5HSRUWHGVHQVLWLYLW\UDQJHVIURPWRSHUFHQWDQGVSHFLILFLW\UDQJHVIURPWR
SHUFHQW>@7KH$37,0$79DVVD\KDVGHPRQVWUDWHGVXSHULRUSHUIRUPDQFHLQVLGHE\VLGH
FRPSDULVRQVZLWKRWKHUGLDJQRVWLFPHWKRGVLQDOOSDWLHQWSRSXODWLRQVDQGVSHFLPHQW\SHVWHVWHG
YDJLQDOGLVFKDUJHXULQH%HFDXVHWKHSUHYDOHQFHRI7ULFKRPRQDVLVHTXDOWRRUJUHDWHUWKDQ
FKODP\GLDDQGJRQRUUKHDWKHUHLVDQLQFUHDVLQJWUHQGWRZDUGVFUHHQLQJIRUDOOWKUHHLQIHFWLRQV
VLPXOWDQHRXVO\ZLWK1$$7>@
2WKHUWHVWV
$PSOLFRU$PSOLFRU5RFKHLVD3&5DVVD\IRUGHWHFWLRQRI1JRQRUUKRHDHDQG&WUDFKRPDWLVWKDW
KDVEHHQPRGLILHGWRGHWHFW7YDJLQDOLVLQYDJLQDOHQGRFHUYLFDOVZDEVRUXULQHVHQVLWLYLW\DQG
VSHFLILFLW\DUHWRSHUFHQWDQGWRSHUFHQWUHVSHFWLYHO\>@,WLVQRWFRPPHUFLDOO\DYDLODEOH
EXWKDVEHHQFOHDUHGE\WKH8QLWHG6WDWHV)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$
1X6ZDE9*1X6ZDE9*LVDQXFOHLFDFLGDPSOLILFDWLRQVLQJOHVSHFLPHQDVVD\IRUWKHGHWHFWLRQRI
WULFKRPRQLDVLVEDFWHULDOYDJLQRVLVDQGYXOYRYDJLQDOFDQGLGLDVLVWKDWKDVDOVREHHQFOHDUHGE\WKH
)'$
&XOWXUH&XOWXUHRQ'LDPRQG
VPHGLXPZDVFRQVLGHUHGWKHJROGVWDQGDUGPHWKRGIRUGLDJQRVLQJ7
YDJLQDOLVLQIHFWLRQEHIRUHWKHGHYHORSPHQWRIPROHFXODUGHWHFWLRQPHWKRGV>@&XOWXUHRIIHUVKLJK
VHQVLWLYLW\XSWRSHUFHQWDQGVSHFLILFLW\!SHUFHQW+RZHYHUWKLVWHVWLVQRWZLGHO\DYDLODEOHDQG

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

WDNHVXSWRVHYHQGD\VWRREWDLQDUHVXOW&XOWXUHLVXVHIXOLQSDWLHQWVZLWKHOHYDWHGYDJLQDOS+DQG
LQFUHDVHGQXPEHUVRISRO\PRUSKRQXFOHDUOHXNRF\WHVEXWDQDEVHQFHRIPRWLOHWULFKRPRQDGVDQGFOXHFHOOV
RQZHWPRXQWZKHQPLFURVFRS\LVXQDYDLODEOHRU\LHOGVDPELJXRXVUHVXOWVRUZKHQQXFOHLFDFLG
DPSOLILFDWLRQWHVWVDUHQRWDYDLODEOH7KH,Q3RXFK7YDJLQDOLVFXOWXUHV\VWHPKDVKLJKVHQVLWLYLW\RYHU
SHUFHQWWDNHVGD\VWRREWDLQUHVXOWVDQGLVFRPPHUFLDOO\DYDLODEOH>@
5DSLGDQWLJHQDQG'1$K\EULGL]DWLRQSUREHV5DSLGGLDJQRVWLFNLWVFDQEHXVHIXOLQDUHDVRIKLJK
SUHYDOHQFHHJVH[XDOO\WUDQVPLWWHGGLVHDVH>67'@FOLQLFVDQGFOLQLFVVHUYLQJSRSXODWLRQVZLWKKLJK
SUHYDOHQFHUDWHVZKHUHPLFURVFRS\RUFXOWXUHLVQRWDYDLODEOH7KHIROORZLQJWHVWVFDQEHSHUIRUPHGE\WKH
FOLQLFLDQDWWKHSRLQWRIFDUHDQGDUHFRPPHUFLDOO\DYDLODEOH
$)),5093,,,7KH$IILUP93,,,0LFURELDO,GHQWLILFDWLRQ6\VWHP%HFWRQ'LFNLQVRQWHVWXVHVD'1$
K\EULGL]DWLRQSUREHRQDYDJLQDOVZDEVSHFLPHQ5HVXOWVDUHDYDLODEOHLQPLQXWHV$OWKRXJK
VHQVLWLYLW\DQGVSHFLILFLW\KDYHEHHQUHSRUWHGWRH[FHHGSHUFHQWLQVLGHE\VLGHWHVWLQJWKLVPHWKRG
ZDVLQIHULRUWRWDUJHWFDSWXUHDQGWUDQVFULSWLRQPHGLDWHGDPSOLILFDWLRQVHQVLWLYLW\YHUVXV
SHUFHQW>@
26207ULFKRPRQDV5DSLG7HVW7KH26207ULFKRPRQDV5DSLG7HVW*HQ]\PHLVDUDSLGDQWLJHQ
WHVWWKDWXVHVDQLPPXQRFKURPDWRJUDSKLFWHFKQRORJ\RQDYDJLQDOVZDEVSHFLPHQ7HVWLQJFDQEH
GRQHDWWKHSRLQWRIFDUHDQGUHVXOWVDUHDYDLODEOHLQPLQXWHV,WKDVVHQVLWLYLW\RIWRSHUFHQW
DQGVSHFLILFLW\RIWRSHUFHQW>@
7KHH[FHOOHQWSHUIRUPDQFHFKDUDFWHULVWLFVRIWKHVHWHVWVDUHLOOXVWUDWHGE\WKHIROORZLQJFRPSDUDWLYHVWXGLHV
ZKLFKFRPSDUHSHUIRUPDQFHRIWUDGLWLRQDODQGUDSLGWHVWLQJPHWKRGV
2QHVWXG\UHFUXLWHGVH[XDOO\DFWLYHDGROHVFHQWIHPDOHVVHHNLQJFDUHDWDWHHQKHDOWKFOLQLFRU
HPHUJHQF\GHSDUWPHQWDQGWHVWHGWKHPIRU7YDJLQDOLVXVLQJWKHIRXUWHVWPHWKRGVGLVFXVVHGDERYH
ZHWPRXQWFXOWXUH,Q3RXFK79UDSLGDQWLJHQWHVWLQJ262079DQGWUDQVFULSWLRQPHGLDWHG
DPSOLILFDWLRQWHVWLQJ$37,0$79>@7KHVHQVLWLYLWLHVRIWKHIRXUPHWKRGVZHUHDQG
SHUFHQWUHVSHFWLYHO\
$QRWKHUVWXG\HQUROOHGIHPDOHDQGPDOHVXEMHFWVVHHNLQJFDUHDWD67'FOLQLF>@6SHFLPHQV
IURPHDFKVXEMHFWZHUHWHVWHGIRUWULFKRPRQLDVLVXVLQJWUDQVFULSWLRQPHGLDWHGDPSOLILFDWLRQ$37,0$
79ZHWPRXQWPLFURVFRS\FXOWXUHDQG3&5WHVWV7KHVXEMHFWZDVGLDJQRVHGZLWKWULFKRPRQLDVLVLI
DQ\RIWKHVHWHVWVZHUHSRVLWLYH,QZRPHQYDJLQDOVZDE$37,0$79ZDVPRUHVHQVLWLYHWKDQZHW
PRXQWRUFXOWXUHYHUVXVDQGSHUFHQWUHVSHFWLYHO\,QPHQXUHWKUDOVZDE$37,0$79
ZDVPRUHVHQVLWLYHWKDQFXOWXUHRU3&5YHUVXVDQGSHUFHQWUHVSHFWLYHO\
,QDWKLUGVWXG\VSHFLPHQVZHUHUHWULHYHGFRQVHFXWLYHO\IURPSDWLHQWVZLWKYDJLQDOFRPSODLQWV
DQGRUZLWKKLVWRULHVVXJJHVWLYHRID67'DQGWHVWHGE\ERWKWKH$)),50DQGWKH$37,0$
7ULFKRPRQDVYDJLQDOLVDVVD\V>@2YHUDOOSHUFHQWRISDWLHQWVZHUHSRVLWLYHIRU7YDJLQDOLV
GHILQHGDVDVSHFLPHQZLWKWZRSRVLWLYHWHVWUHVXOWVIRU7YDJLQDOLVE\WZRGLIIHUHQWPROHFXODUDVVD\V
7KH$37,0$DVVD\ZDVVWDWLVWLFDOO\PRUHVHQVLWLYHWKDQWKH$)),50DVVD\YHUVXVSHUFHQW
VSHFLILFLW\ZDVVLPLODU$37,0$SHUFHQW$)),50SHUFHQW
&HUYLFDOF\WRORJ\7ULFKRPRQDGVDUHVRPHWLPHVUHSRUWHGDVDQLQFLGHQWDOILQGLQJRQWHVWVSHUIRUPHG
IRUFHUYLFDOFDQFHUVFUHHQLQJ/LTXLGEDVHGFHUYLFDOF\WRORJ\LVQRWDVHQVLWLYHWHVWIRUGLDJQRVLVRI
WULFKRPRQLDVLVEXWWUHDWPHQWRIZRPHQZLWKWULFKRPRQDGVQRWHGRQOLTXLGEDVHGFHUYLFDOF\WRORJ\LV
UHDVRQDEOHVLQFHVSHFLILFLW\LVKLJK,QDVWXG\WKDWSHUIRUPHGERWKOLTXLGEDVHGFHUYLFDOF\WRORJ\DQGFXOWXUH
IRU7YDJLQDOLVRQFRQVHFXWLYHZRPHQKDGDOLTXLGEDVHGVPHDUSRVLWLYHIRUWULFKRPRQDGVDQG
KDGSRVLWLYHFXOWXUHV>@$OWKRXJKVHQVLWLYLW\RIOLTXLGEDVHGVPHDUVIRU7ULFKRPRQDVLQIHFWLRQZDVORZ
SHUFHQWVSHFLILFLW\ZDVKLJKSHUFHQWUHVXOWLQJLQDIDOVHSRVLWLYHUDWHRIRQO\SHUFHQW
&RQYHQWLRQDO3DSDQLFRODRX3DSVPHDUVGRQRWSHUIRUPDVZHOOIRUGLDJQRVLVRIWULFKRPRQLDVLV6HQVLWLYLW\
LVVLPLODUWRSHUFHQWWROLTXLGEDVHGWHVWVEXWIDOVHSRVLWLYHUHVXOWVDUHFRPPRQSHUFHQW>@7KLV
PDNHVWKHSRVLWLYHSUHGLFWLYHYDOXHSRRULQDORZSUHYDOHQFHSRSXODWLRQ7KXVWKH3DSVPHDUVKRXOGQRWEH

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

XVHGWRGLDJQRVHWULFKRPRQLDVLV$V\PSWRPDWLFZRPHQZLWKWULFKRPRQDGVLGHQWLILHGRQDFRQYHQWLRQDO3DS
VPHDUVKRXOGEHHYDOXDWHGE\ZHWPRXQWDQGWKHQ1$$7FXOWXUHRUUDSLGWHVWLIWKHZHWPRXQWLVQHJDWLYH
DQGWUHDWHGRQO\LIWKHGLDJQRVLVLVFRQILUPHG
0HQ7KHPRVWUHOLDEOHPHWKRGVIRUGLDJQRVLVRI7ULFKRPRQDVXUHWKULWLVLQWKHPDOHDUHE\FXOWXUHRUD
QXFOHLFDFLGDPSOLILFDWLRQWHVWLH3&5RUWUDQVFULSWLRQPHGLDWHGDPSOLILFDWLRQ>70$@RIILUVWIUDFWLRQXULQHRU
DXUHWKUDOVZDEVSHFLPHQEXWWKHVHWHVWVDUHQRWZLGHO\DYDLODEOH>@6DOLQHPLFURVFRS\RIDXUHWKUDO
VZDEVSHFLPHQKDVORZVHQVLWLYLW\DQGLVQRWUHFRPPHQGHG6HH8UHWKULWLVLQDGXOWPHQ
6&5((1,1*,QWKH8QLWHG6WDWHVWKH&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ&'&UHFRPPHQG
VFUHHQLQJIRU7YDJLQDOLVLQ+,9LQIHFWHGZRPHQDQQXDOO\DQGGXULQJSUHJQDQF\DWWKHLQLWLDOSUHQDWDOYLVLW
>@,QDGGLWLRQVFUHHQLQJLVUHDVRQDEOHIRUZRPHQDWLQFUHDVHGULVNRILQIHFWLRQLQFOXGLQJWKRVHZLWKQHZ
RUPXOWLSOHSDUWQHUVRUDKLVWRU\RIVH[XDOO\WUDQVPLWWHGLQIHFWLRQV6FUHHQLQJIRUPHQLVQRWUHFRPPHQGHG
,VVXHVUHODWHGWRVFUHHQLQJIRU7YDJLQDOLVDUHGLVFXVVHGVHSDUDWHO\6HH6FUHHQLQJIRUVH[XDOO\
WUDQVPLWWHGLQIHFWLRQVVHFWLRQRQ
7ULFKRPRQDV

75($70(177UHDWPHQWLVLQGLFDWHGIRUERWKV\PSWRPDWLFDQGDV\PSWRPDWLFZRPHQDQGPHQ
7UHDWPHQWUHGXFHVWKHSUHYDOHQFHRI7YDJLQDOLVFDUULDJHLQWKHSRSXODWLRQUHOLHYHVV\PSWRPVDQG
UHGXFHVWKHULVNRIVHTXHODHLQFOXGLQJDFTXLVLWLRQWUDQVPLVVLRQRIKXPDQLPPXQRGHILFLHQF\YLUXV>+,9@
>@7KHQLWURLPLGD]ROHGUXJVPHWURQLGD]ROHRUWLQLGD]ROHDUHWKHRQO\FODVVRIGUXJVWKDWSURYLGH
FXUDWLYHWKHUDS\RIWULFKRPRQLDVLV3DWLHQWVVKRXOGEHLQVWUXFWHGWRDYRLGLQWHUFRXUVHXQWLOWKH\DQGWKHLU
SDUWQHUVKDYHFRPSOHWHGWUHDWPHQWDQGDUHDV\PSWRPDWLFZKLFKJHQHUDOO\WDNHVDERXWDZHHN$IWHUVLQJOH
GRVHWKHUDS\RUWUHDWPHQWRIDV\PSWRPDWLFSDWLHQWVWKHFRXSOHVKRXOGDEVWDLQIURPLQWHUFRXUVHXQWLOERWK
SDUWQHUVKDYHZDLWHGDWOHDVWVHYHQGD\VVLQFHWDNLQJWKHODVWDQWLELRWLFGRVH7KHUHDUHQRVWXGLHVRQKRZ
ORQJWULFKRPRQDGVUHPDLQYLDEOHDIWHUWUHDWPHQWLVLQLWLDWHGRUFRPSOHWHG
1RQSUHJQDQWZRPHQ7UHDWPHQWLVLQGLFDWHGLQDOOQRQSUHJQDQWZRPHQGLDJQRVHGZLWKWULFKRPRQLDVLV
HYHQLIDV\PSWRPDWLF7KHUDWLRQDOHIRUWUHDWPHQWRIDV\PSWRPDWLFZRPHQLVWKDWLIOHIWXQWUHDWHGWKH\
FRQWLQXHWRWUDQVPLWWKHLQIHFWLRQWRVH[XDOSDUWQHUVDQGXSWRRQHWKLUGRIV\PSWRPDWLFZRPHQEHFRPH
V\PSWRPDWLFZLWKLQVL[PRQWKV>@
QLWURLPLGD]ROHGUXJV7KHQLWURLPLGD]ROHGUXJVPHWURQLGD]ROHRUWLQLGD]ROHDUHWKHRQO\FODVVRI
GUXJVWKDWSURYLGHFXUDWLYHWKHUDS\RIWULFKRPRQLDVLV0RVWVWUDLQVRI7YDJLQDOLVDUHKLJKO\VXVFHSWLEOHWR
WKHVHDJHQWV>@5DQGRPL]HGWULDOVXVLQJWKHVHGUXJVKDYHJHQHUDOO\UHSRUWHGFXUHUDWHVRIWR
SHUFHQW>@7KHUDS\ZLWKGUXJVRWKHUWKDQQLWURLPLGD]ROHVLVDQRSWLRQEXWFXUHUDWHVDUHORZ
SHUFHQW>@
:HUHFRPPHQGWUHDWPHQWZLWKDVLQJOHJUDPRUDOGRVHRIHLWKHUWLQLGD]ROHRUPHWURQLGD]ROHLHIRXU
PJWDEOHWV>@:HEHOLHYHFXUHUDWHVZLWKWLQLGD]ROHDUHFRPSDUDEOHWRWKRVHRIPHWURQLGD]ROHEXWWKH
GUXJLVEHWWHUWROHUDWHG7LQLGD]ROHJHQHUDOO\FDXVHVIHZHUJDVWURLQWHVWLQDOVLGHHIIHFWVEXWWKHFRVWLVKLJKHU
FRPSDUHGZLWKPHWURQLGD]ROH$OWKRXJKWLQLGD]ROHZDVVLJQLILFDQWO\PRUHHIIHFWLYHWKDQPHWURQLGD]ROHLQ
VHYHUDOUDQGRPL]HGWULDOVPRVWRIWKHVHWULDOVZHUHVXEMHFWWRELDVVLQFHRXWFRPHZDVDVVHVVHGE\
FOLQLFLDQVZKRZHUHQRWEOLQGHGWRWKHSDWLHQW
VWUHDWPHQWJURXS>@
$QDOWHUQDWLYHPXOWLGRVHUHJLPHQLVPHWURQLGD]ROHPJRUDOO\WZLFHDGD\IRUVHYHQGD\V>@6LPLODUFXUH
UDWHVDUHREWDLQHGZLWKVLQJOHDQGPXOWLSOHGRVHUHJLPHQVFXUHUDWHIRUVLQJOHGRVHWRSHUFHQWFXUH
UDWHIRUPXOWLSOHGRVHWRSHUFHQW>@7KHDGYDQWDJHVRIVLQJOHGRVHWKHUDS\LQFOXGHEHWWHU
FRPSOLDQFHDVKRUWHUSHULRGRIDOFRKRODYRLGDQFHDQGSRVVLEO\GHFUHDVHG&DQGLGDVXSHULQIHFWLRQDOWKRXJK
WKHUHLVQRHYLGHQFHRIGHFUHDVHG&DQGLGDVXSHULQIHFWLRQ+RZHYHUVLGHHIIHFWVHJQDXVHDYRPLWLQJ
KHDGDFKHPHWDOOLFWDVWHGL]]LQHVVDSSHDUWREHGRVHUHODWHGDQGWKXVRFFXUOHVVIUHTXHQWO\ZLWKWKHORZHU
GRVHVXVHGLQPXOWLSOHGRVHSURORQJHGWKHUDS\>@
2UDOLVSUHIHUUHGWRYDJLQDOWKHUDS\VLQFHV\VWHPLFDGPLQLVWUDWLRQDFKLHYHVKLJKHUGUXJOHYHOVDQG
WKHUDSHXWLFGUXJOHYHOVLQWKHXUHWKUDDQGSHULXUHWKUDOJODQGVZKLFKVHUYHDVHQGRJHQRXVUHVHUYRLUVRI
RUJDQLVPVWKDWFDQFDXVHUHFXUUHQFH&XUHUDWHVIRUYDJLQDOWKHUDS\ZLWKPHWURQLGD]ROHJHODUHSHUFHQW

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

ZKLFKLVVLJQLILFDQWO\ORZHUWKDQZLWKRUDOWKHUDS\DQGWKHUHIRUHYDJLQDOWKHUDS\ZLWKPHWURQLGD]ROHLVQRW
UHFRPPHQGHG>@
3DWLHQWVVKRXOGEHDGYLVHGWRQRWFRQVXPHDOFRKROIRUKRXUVDIWHUPHWURQLGD]ROHWUHDWPHQWDQGIRU
KRXUVDIWHUWLQLGD]ROHWUHDWPHQWEHFDXVHRIWKHSRVVLELOLW\RIDGLVXOILUDPOLNH$QWDEXVHHIIHFWUHDFWLRQ>@
$OOHUJ\WRQLWURLPLGD]ROHGUXJV*LYHQWKHORZHIILFDF\RIDQ\GUXJRWKHUWKDQWKHQLWURLPLGD]ROH
GUXJVVHH
QLWURLPLGD]ROHGUXJV
DERYHZHVXJJHVWSDWLHQWVZLWKDQ,J(PHGLDWHGDOOHUJ\WR
PHWURQLGD]ROHRUWLQLGD]ROHEHUHIHUUHGIRUGHVHQVLWL]DWLRQUDWKHUWKDQXVLQJDQDOWHUQDWLYHFODVVRIGUXJV
>@'HVHQVLWL]DWLRQLVYHU\HIIHFWLYHLQRQHVHULHVDOOZRPHQZKRXQGHUZHQWGHVHQVLWL]DWLRQ
VXEVHTXHQWO\HUDGLFDWHGWKHLULQIHFWLRQV>@
)ROORZXS:HUHWHVWDOOZRPHQWUHDWHGIRUDGRFXPHQWHG7ULFKRPRQDVLQIHFWLRQUHJDUGOHVVRI
ZKHWKHUWKH\EHOLHYHWKHLUVH[SDUWQHUVZHUHWUHDWHG5HSHDWWHVWLQJLVSHUIRUPHGZLWKDQXFOHLFDFLG
DPSOLILFDWLRQWHVW1$$7DQGFDQEHGRQHDVVRRQDVWZRZHHNVDIWHUDQGZLWKLQWKUHHPRQWKVRI
FRPSOHWLQJWUHDWPHQW7KLVLVFRQVLVWHQWZLWKUHFRPPHQGDWLRQVIURPWKH&HQWHUVIRU'LVHDVH&RQWURODQG
3UHYHQWLRQ&'&LQWKH8QLWHG6WDWHV>@7KHUDWLRQDOHIRUUHSHDWWHVWLQJLVWKDWUHLQIHFWLRQUDWHVRIXSWR
SHUFHQWKDYHEHHQUHSRUWHGLQZRPHQWUHDWHGIRUWULFKRPRQLDVLV
6H[SDUWQHUV7UHDWPHQWRIVH[SDUWQHUVLVLQGLFDWHGEHFDXVHPD[LPDOFXUHUDWHVLQLQIHFWHGZRPHQ
DUHDFKLHYHGZKHQWKHLUVH[XDOSDUWQHUVDUHWUHDWHGVLPXOWDQHRXVO\>@&RQFXUUHQWWUHDWPHQWDOVR
SUHYHQWVWUDQVPLVVLRQWRRWKHUVH[XDOFRQWDFWV,WLVQRWPDQGDWRU\WRLGHQWLI\WKHRUJDQLVPLQDPDOHSDUWQHU
EHIRUHWUHDWLQJKLPLH([SHGLWHG3DUWQHU7KHUDS\>(37@JLYHQWKHKLJKUDWHRIFRQFXUUHQWFDUULDJHWR
SHUFHQW>@GLIILFXOW\RIGLDJQRVLVLQPDOHVORZHUFRPSOLDQFHZKHQWKHSDUWQHULVDVNHGWRYLVLWKLVKHDOWK
FDUHSURYLGHUDQGWKHFRQYHQLHQFHORZPRUELGLW\DQGORZFRVWRIHPSLULFWUHDWPHQW
7UHDWPHQWRIVH[SDUWQHUVLVLGHQWLFDOWRWKDWIRUQRQSUHJQDQWIHPDOHVZLWKSUHIHUHQFHIRUDVLQJOHGRVH
UHJLPHQWRPD[LPL]HFRPSOLDQFHLHVLQJOHRUDOGRVHRIHLWKHUWLQLGD]ROHRUPHWURQLGD]ROHJUDPV1HLWKHU
SDUWQHUVKRXOGUHVXPHLQWHUFRXUVHXQWLOERWKSDUWQHUVKDYHFRPSOHWHGWUHDWPHQWRWKHUZLVHUHLQIHFWLRQFDQ
RFFXU
,GHDOO\LISRVVLEOHVH[XDOSDUWQHUVVKRXOGEHUHIHUUHGIRUGLDJQRVWLFHYDOXDWLRQEHFDXVHFRQFXUUHQWVH[XDOO\
WUDQVPLWWHGLQIHFWLRQVVXFKDVFKODP\GLDDQGJRQRUUKHDDUHFRPPRQDQGVKRXOGEHGLDJQRVHGDQG
WUHDWHGLISUHVHQW>@+RZHYHULIWKHRQHSDUWQHUKDVEHHQGLDJQRVHGZLWKFKODP\GLDRUJRQRUUKHD
(37LVDOVRDQRSWLRQIRUWKHVHLQIHFWLRQV>@
3UHJQDQWZRPHQ*LYHQWKHDVVRFLDWLRQRI7YDJLQDOLVLQIHFWLRQZLWKDGYHUVHSUHJQDQF\RXWFRPHV>@
V\PSWRPDWLFSUHJQDQWZRPHQZLWKFRQILUPHGLQIHFWLRQDUHWUHDWHG>@$GGLWLRQDOO\DV\PSWRPDWLF
WULFKRPRQLDVLVFDQEHGLDJQRVHGGXULQJSUHJQDQF\ZLWKURXWLQHVFUHHQLQJRI+,9LQIHFWHGRUKLJKULVN
ZRPHQ$OWKRXJKWUHDWPHQWRIDV\PSWRPDWLFSUHJQDQWZRPHQLVQRWXQLYHUVDO>@ZHEHOLHYHWKHEHQHILWV
RIWUHDWPHQWLQFOXGLQJUHGXFHGSDUWQHUDQGSHULQDWDOWUDQVPLVVLRQRXWZHLJKSRWHQWLDOULVNV$KLVWRULFDO
FRQFHUQUHJDUGLQJWUHDWPHQWRIDV\PSWRPDWLFSUHJQDQWZRPHQFRPHVIURPRQHWULDO>@DQGVXEVHTXHQW
PHWDDQDO\VLVEDVHGKHDYLO\RQWKHWULDO>@ZKLFKUHSRUWHGDQLQFUHDVHGULVNRISUHWHUPELUWKLQZRPHQ
WUHDWHGZLWKPHWURQLGD]ROHWKHUDS\FRPSDUHGZLWKXQWUHDWHGZRPHQ+RZHYHUWKHWULDOKDGPXOWLSOH
OLPLWDWLRQVLQFOXGLQJVWDUWLQJVFUHHQLQJLQWKHVHFRQGWULPHVWHUDQGVXEVHTXHQWVWXGLHVKDYHQRWUHSRUWHG
DGYHUVHRXWFRPHVIURPWUHDWPHQW>@6HH
3UHJQDQF\
DERYH
7KHUHFRPPHQGHGPHGLFDWLRQGXULQJSUHJQDQF\LVPHWURQLGD]ROHJJLYHQDVDVLQJOHRUDOGRVH%HFDXVH
PDQ\SUHJQDQWZRPHQKDYHVLJQLILFDQWQDXVHDRUYRPLWLQJVRPHFOLQLFLDQVSUHIHUPHWURQLGD]ROHPJ
WZLFHGDLO\RUDOO\IRUILYHWRVHYHQGD\VWROHVVHQPHGLFDWLRQLQGXFHGQDXVHDDQGYRPLWLQJ>@%RWK
UHJLPHQVDUHDFFHSWDEOH$OWKRXJKFORWULPD]ROHFUHDPLQVHUWHGYDJLQDOO\RIWHQUHVXOWVLQV\PSWRPDWLF
UHOLHILWGRHVQRWHUDGLFDWHWKHRUJDQLVPV7KHUHLVOLPLWHGLQIRUPDWLRQRQWKHVDIHW\RIWLQLGD]ROHLQ
SUHJQDQF\WKHUHIRUHZHDYRLGLWVXVHHVSHFLDOO\LQWKHILUVWWULPHVWHU)RUWKHVHUHDVRQVRUDOPHWURQLGD]ROH
WKHUDS\LVSUHIHUUHG
:KLOHPHWURQLGD]ROHFURVVHVWKHSODFHQWD>@LWDSSHDUVWREHORZULVN&URVVVHFWLRQDODQGFRKRUWVWXGLHV

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

KDYHQRWUHSRUWHGWHUDWRJHQLFLW\RUPXWDJHQLFHIIHFWVLQKXPDQVDOWKRXJKVWXGLHVVXJJHVWWKHGUXJLV
PXWDJHQLFLQEDFWHULDDQGFDUFLQRJHQLFLQPLFH>@
$VZLWKQRQSUHJQDQWZRPHQWUHDWPHQWRIVH[XDOSDUWQHUVLVLQGLFDWHGZKHQ7YDJLQDOLVLVFRQILUPHGLQD
SUHJQDQWZRPDQ
%UHDVWIHHGLQJZRPHQ%UHDVWIHHGLQJZRPHQFDQEHWUHDWHGZLWKWKHVLQJOHJUDPGRVH>@:KLOH
PHWURQLGD]ROHLVVHFUHWHGLQEUHDVWPLONEUHDVWIHGLQIDQWVUHFHLYHPHWURQLGD]ROHGRVHVWKDWDUHORZHUWKDQ
WKRVHXVHGWRWUHDWLQIHFWLRQVLQLQIDQWV1HYHUWKHOHVVVRPHFOLQLFLDQVUHFRPPHQGGHIHUULQJEUHDVWIHHGLQJ
IRUWRKRXUVIROORZLQJPDWHUQDOVLQJOHGRVHWUHDWPHQW>@$OWHUQDWHO\PDWHUQDOWUHDWPHQWZLWKDVHYHQ
GD\UHJLPHQPJRUDOO\WKUHHWLPHVDGD\IRUVHYHQGD\VKDVEHHQUHSRUWHGWRSURGXFHDORZHU
PHWURQLGD]ROHFRQFHQWUDWLRQLQEUHDVWPLONDQGLVFRQVLGHUHGFRPSDWLEOHZLWKEUHDVWIHHGLQJ>@
7KHUHDUHQRKXPDQGDWDVXSSRUWLQJDQDVVRFLDWLRQEHWZHHQPHWURQLGD]ROHH[SRVXUHIURPEUHDVWIHHGLQJ
DQGFDQFHUKRZHYHUDQDVVRFLDWLRQZLWKFDUFLQRJHQHVLVLQURGHQWVKDVEHHQGHPRQVWUDWHG>@2XWFRPHV
GDWDRIPDWHUQDOPHWURQLGD]ROHXVHGLGQRWVKRZDVLJQLILFDQWLQFUHDVHLQDGYHUVHHYHQWVFRPSDUHGWRXVH
RIRWKHUDQWLPLFURELDOVDOWKRXJKDFRKRUWVWXG\IRXQGDQRQVLJQLILFDQWWUHQGWRZDUGPRUHORRVHVWRROVDQG
PRUHFDQGLGDOFRORQL]DWLRQLQPHWURQLGD]ROHH[SRVHGLQIDQWV
6LQFHWKHUHODWLYHLQIDQWGRVHRIPHWURQLGD]ROHLVKLJKSHUFHQWZLWKPDWHUQDODGPLQLVWUDWLRQRIWKH
JUDPRQHWLPHGRVHDFDXWLRXVDSSURDFKIRUPRWKHUVUHFHLYLQJWKLVGRVHLVWRH[SUHVVDQGGLVFDUGWKHLUPLON
IRUWRKRXUVWRDOORZH[FUHWLRQRIWKHGUXJ>@
,QPRWKHUVXVLQJWLQLGD]ROHZKLFKKDVDORQJHUKDOIOLIHWKDQPHWURQLGD]ROHWKH&'&VXJJHVWVLQWHUUXSWLQJ
EUHDVWIHHGLQJIRUWKUHHGD\VDIWHUWKHODVWGRVH>@
+,9LQIHFWHGZRPHQ+,9LQIHFWHGZRPHQZLWK7YDJLQDOLVDUHWUHDWHGZLWKPHWURQLGD]ROHPJWZLFH
SHUGD\IRUVHYHQGD\V>@:HGRQRWXVHVLQJOHGRVHPHWURQLGD]ROHIRUWUHDWPHQWRIWKHVHZRPHQJLYHQ
WKHKLJKSUHYDOHQFHRIDV\PSWRPDWLFEDFWHULDOYDJLQRVLVFRLQIHFWLRQDQGRWKHUIDFWRUVWKDWPD\UHQGHU
PHWURQLGD]ROHOHVVHIIHFWLYHLQWKLVSRSXODWLRQ
6WDQGDUGWUHDWPHQWUHFRPPHQGDWLRQVIRUWULFKRPRQLDVLVKDYHEHHQEDVHGRQVWXGLHVFRQGXFWHGLQ+,9
XQLQIHFWHGSHUVRQVEXWWKHUHLVLQFUHDVLQJHYLGHQFHWKDW+,9LQIHFWHGZRPHQVKRXOGUHFHLYHORQJHU
WUHDWPHQWSDUWLFXODUO\LIWKH\DUHUHFHLYLQJDQWLUHWURYLUDOWKHUDS\,QDWULDOZKHUH+,9SRVLWLYHZRPHQ
ZLWKFXOWXUHFRQILUPHG7YDJLQDOLVZHUHUDQGRPO\DVVLJQHGWRWUHDWPHQWZLWKPHWURQLGD]ROHJUDPVLQJOH
GRVHRUPHWURQLGD]ROHPJWZLFHSHUGD\IRUVHYHQGD\VVLQJOHGRVHWKHUDS\ZDVOHVVHIIHFWLYHWKDQ
PXOWLSOHGD\WKHUDS\>@7KHVHYHQGD\WUHDWPHQWJURXSKDGDORZHUUDWHRISRVLWLYHFXOWXUHVWRGD\V
DIWHUWUHDWPHQWFRPSOHWLRQSHUFHQW>ZRPHQ@YHUVXVSHUFHQW>ZRPHQ@55
&,DQGDWPRQWKVSHUFHQW>ZRPHQ@YHUVXVSHUFHQW>ZRPHQ@55
&,2IQRWHDOOZRPHQZHUHJLYHQDJUDPPHWURQLGD]ROHGRVHWRGHOLYHUWRWKHLUVH[SDUWQHUV,Q
DQRWKHUWULDO+,9LQIHFWHGZRPHQRQDQWLUHWURYLUDOWKHUDS\KDGIROGJUHDWHUULVNRISHUVLVWHQW
WULFKRPRQLDVLVWKDQ+,9LQIHFWHGZRPHQQRWRQDQWLUHWURYLUDOWKHUDS\EXWWKLVULVNFRXOGEHPLQLPL]HGE\
PXOWLGD\GRVLQJ>@
$GGLWLRQDOO\WKHUHLVDKLJKSUHYDOHQFHRIEDFWHULDOYDJLQRVLVLQ+,9LQIHFWHG7YDJLQDOLVLQIHFWHGZRPHQ
DQGWKHUHLVDQDSSDUHQWDVVRFLDWLRQEHWZHHQWKHSUHVHQFHRIEDFWHULDOYDJLQRVLVDQGHDUO\IDLOXUHRIVLQJOH
GRVHPHWURQLGD]ROHWUHDWPHQWRIWULFKRPRQLDVLV>@
$VZLWKDOOZRPHQWKH&'&VXJJHVWVUHWHVWLQJ+,9LQIHFWHGZRPHQWKUHHPRQWKVDIWHUFRPSOHWLRQRI
WKHUDS\EDVHGRQWKHKLJKSURSRUWLRQRIUHFXUUHQWRUSHUVLVWHQW7YDJLQDOLVLQIHFWLRQLQWKLVSRSXODWLRQDQG
WKHDVVRFLDWLRQEHWZHHQ+,9DQGWKLVLQIHFWLRQ>@
0HQZLWKXUHWKULWLV7UHDWPHQWRIPHQZLWKXUHWKULWLVLVGLVFXVVHGVHSDUDWHO\6HH8UHWKULWLVLQDGXOW
PHQ
5HIUDFWRU\FDVHV7KHPRVWFRPPRQFDXVHVRIWUHDWPHQWIDLOXUHDUHQRQFRPSOLDQFHDQGUHLQIHFWLRQ
&RPSOLDQFHLVHQKDQFHGZLWKVLQJOHGRVHWKHUDS\5HLQIHFWLRQLVXQOLNHO\LIWKHSDUWQHUZDVWUHDWHG

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

FRQFXUUHQWO\DQGVH[XDOLQWHUFRXUVHZDVDYRLGHGXQWLOERWKSDUWQHUVFRPSOHWHGWUHDWPHQW
:RPHQZKRIDLODVLQJOHGRVHRIPHWURQLGD]ROHJUDPVFDQEHWUHDWHGZLWKPHWURQLGD]ROHPJWZLFH
GDLO\IRUVHYHQGD\VWRWDOGRVHJUDPV>@+HUSDUWQHUVVKRXOGEHWUHDWHGDVZHOO,IWKLVUHJLPHQIDLOV
WLQLGD]ROHRUPHWURQLGD]ROHLVDGPLQLVWHUHGDWDGRVHRIJUDPVSHUGD\IRUVHYHQGD\VWRWDOGRVH
JUDPV7KHVHUHJLPHQVFDQEHHIIHFWLYHLQSDWLHQWVZLWKORZOHYHOVRIPHWURQLGD]ROHUHVLVWDQFHZKLFKZDV
QRWHGLQSHUFHQWRI7YDJLQDOLVLVRODWHVRIZRPHQDWWHQGLQJ67'FOLQLFVLQVL[FLWLHVLQWKH8QLWHG6WDWHV
>@
,IERWKRIWKHDERYHUHJLPHQVIDLOWKH&'&UHFRPPHQGVLQYLWURFXOWXUHDQGGUXJVXVFHSWLELOLW\WHVWLQJ
DYDLODEOHIURPWKH&'&'LYLVLRQRI67'3UHYHQWLRQWHOHSKRQHDQGUHIHUUDOWRDVSHFLDOLVW
7KHUDSHXWLFRSWLRQVLQFOXGHPD[LPXPWROHUDWHGGRVHVRIWLQLGD]ROHWRJUDPVGDLO\LQGLYLGHGGRVHVIRU
GD\V&RQVLGHUDEOHVXFFHVVZLWKWLQLGD]ROHLQUHIUDFWRU\GLVHDVHKDVEHHQUHSRUWHGDOWKRXJKWKHRSWLPDO
GRVHKDVQRWEHHQHVWDEOLVKHG>@&URVVUHVLVWDQFHWRWLQLGD]ROHLVIUHTXHQWEXWQRWLQHYLWDEOH>@
3DWLHQWVZLWKKLJKOHYHOPHWURQLGD]ROHUHVLVWDQFHDUHXVXDOO\VXFFHVVIXOO\WUHDWHGE\SURORQJHGDQGKLJK
GRVHWLQLGD]ROHWKHUDS\+LJKGRVHWLQLGD]ROHKDVDEHWWHUVDIHW\SURILOHDQGLVEHWWHUWROHUDWHGWKDQKLJK
GRVHPHWURQLGD]ROH
&DVHUHSRUWVKDYHGHVFULEHGVXFFHVVIXOXVHRIQLPRUD]ROHRUQLGD]ROHQLULGD]ROHIXUD]ROLGRQHDQG
KDP\FLQ>@ZKHUHDVDWULDORIQLWD]R[DQLGHLQWKUHHZRPHQZLWKGLIILFXOWWRHUDGLFDWH7YDJLQDOLVUHSRUWHG
ODFNRIHIILFDF\>@
5DUHSDWLHQWVZKRGRQRWKDYHDUHVSRQVHWRQLWURLPLGD]ROHVKDYHEHHQWUHDWHGZLWKWRSLFDOSDURPRP\FLQ
PJGDLO\IRUWZRZHHNV>@3DURPRP\FLQLVQRWDYDLODEOHFRPPHUFLDOO\LQWKH8QLWHG6WDWHVDVD
FUHDPDQGKDVWREHPDGHE\DFRPSRXQGLQJSKDUPDF\/LWWOHLVNQRZQDERXWWKLVSUHSDUDWLRQEXWVHYHUH
ORFDOVLGHHIIHFWVSDLQPXFRVDOXOFHUDWLRQFDQRFFXU>@:HUHFRPPHQGQRWXVLQJLW2WKHUWRSLFDODJHQWV
WKDWKDYHDOLPLWHGSHUFHQWFXUHUDWHDQGWKHUHIRUHDUHQRWUHFRPPHQGHGE\WKH&'&LQFOXGH
LQWUDYDJLQDOSRYLGRQHLRGLQHFORWULPD]ROHDFHWLFDFLGJHQWLDQYLROHWQRQR[\QRODQGSRWDVVLXP
SHUPDQJDQDWH>@
35(9(17,217KHULVNRIDFTXLULQJ7YDJLQDOLVLQIHFWLRQFDQEHUHGXFHGE\FRQVLVWHQWXVHRIFRQGRPV
DQGOLPLWLQJWKHQXPEHURIVH[XDOSDUWQHUV6SHUPLFLGDODJHQWVVXFKDVQRQR[\QROUHGXFHWKHUDWHRI
WUDQVPLVVLRQ>@
,1)250$7,21)253$7,(1768S7R'DWHRIIHUVWZRW\SHVRISDWLHQWHGXFDWLRQPDWHULDOV7KH%DVLFV
DQG%H\RQGWKH%DVLFV7KH%DVLFVSDWLHQWHGXFDWLRQSLHFHVDUHZULWWHQLQSODLQODQJXDJHDWWKHWKWRWK
JUDGHUHDGLQJOHYHODQGWKH\DQVZHUWKHIRXURUILYHNH\TXHVWLRQVDSDWLHQWPLJKWKDYHDERXWDJLYHQ
FRQGLWLRQ7KHVHDUWLFOHVDUHEHVWIRUSDWLHQWVZKRZDQWDJHQHUDORYHUYLHZDQGZKRSUHIHUVKRUWHDV\WR
UHDGPDWHULDOV%H\RQGWKH%DVLFVSDWLHQWHGXFDWLRQSLHFHVDUHORQJHUPRUHVRSKLVWLFDWHGDQGPRUH
GHWDLOHG7KHVHDUWLFOHVDUHZULWWHQDWWKHWKWRWKJUDGHUHDGLQJOHYHODQGDUHEHVWIRUSDWLHQWVZKRZDQW
LQGHSWKLQIRUPDWLRQDQGDUHFRPIRUWDEOHZLWKVRPHPHGLFDOMDUJRQ
+HUHDUHWKHSDWLHQWHGXFDWLRQDUWLFOHVWKDWDUHUHOHYDQWWRWKLVWRSLF:HHQFRXUDJH\RXWRSULQWRUHPDLO
WKHVHWRSLFVWR\RXUSDWLHQWV<RXFDQDOVRORFDWHSDWLHQWHGXFDWLRQDUWLFOHVRQDYDULHW\RIVXEMHFWVE\
VHDUFKLQJRQSDWLHQWLQIRDQGWKHNH\ZRUGVRILQWHUHVW
%DVLFVWRSLFVHH3DWLHQWLQIRUPDWLRQ7ULFKRPRQLDVLV7KH%DVLFV
6800$5<$1'5(&200(1'$7,216
7ULFKRPRQLDVLVLVFDXVHGE\WKHSURWR]RD7ULFKRPRQDVYDJLQDOLV,WLVYLUWXDOO\DOZD\VVH[XDOO\
WUDQVPLWWHGDQGFDQEHLGHQWLILHGLQSHUFHQWRIWKHPDOHVH[XDOSDUWQHUVRILQIHFWHGZRPHQ
&RLQIHFWLRQZLWKRWKHUVH[XDOO\WUDQVPLWWHGGLVHDVHV67'VDQGEDFWHULDOYDJLQRVLVLVFRPPRQ6HH

0LFURELRORJ\DQGWUDQVPLVVLRQ
DERYHDQG
3UHYDOHQFH
DERYH
8QWUHDWHGWULFKRPRQDOYDJLQLWLVPD\SURJUHVVWRXUHWKULWLVRUF\VWLWLV7YDJLQDOLVKDVEHHQDVVRFLDWHG
ZLWKDUDQJHRIDGYHUVHUHSURGXFWLYHKHDOWKRXWFRPHVLQFOXGLQJFHUYLFDOQHRSODVLDSRVWK\VWHUHFWRP\

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

FXIIFHOOXOLWLVRUDEVFHVVDW\SLFDOSHOYLFLQIODPPDWRU\GLVHDVHLQZRPHQLQIHFWHGZLWKKXPDQ
LPPXQRGHILFLHQF\YLUXV+,9LQIHUWLOLW\DQGSUHWHUPELUWK,WPD\DOVRLQFUHDVHZRPHQ
VVXVFHSWLELOLW\
WR+,9LQIHFWLRQ6HH
&RQVHTXHQFHV
DERYH
&OLQLFDOPDQLIHVWDWLRQVLQZRPHQUDQJHIURPDQDV\PSWRPDWLFFDUULHUVWDWHWRDQDFXWHVHYHUH
LQIODPPDWRU\GLVHDVH6LJQVDQGV\PSWRPVLQFOXGHDSXUXOHQWPDORGRURXVWKLQGLVFKDUJHZLWK
DVVRFLDWHGEXUQLQJSUXULWXVG\VXULDIUHTXHQF\DQGG\VSDUHXQLD0HQDUHRIWHQDV\PSWRPDWLFEXW
KDYHGHYHORSHGXUHWKULWLV6HH
&OLQLFDOIHDWXUHV
DERYH
$V\PSWRPDWLFFDUULDJHFDQRFFXUIRUSURORQJHGSHULRGVRIWLPHWKXVLWLVQRWQHFHVVDULO\SRVVLEOHWR
DVFHUWDLQZKHQRUIURPZKRPWKHLQIHFWLRQZDVDFTXLUHG6HH
&OLQLFDOIHDWXUHV
DERYH
7KHGLDJQRVLVRI7YDJLQDOLVLVEDVHGRQODERUDWRU\WHVWLQJPRWLOHWULFKRPRQDGVRQZHWPRXQWSLFWXUH
SRVLWLYHFXOWXUHSRVLWLYHQXFOHLFDFLGDPSOLILFDWLRQWHVW1$$7RUSRVLWLYHUDSLGDQWLJHQRUQXFOHLF
DFLGSUREHWHVW1RQHRIWKHFOLQLFDOIHDWXUHVRIWULFKRPRQLDVLVLVVXIILFLHQWO\VHQVLWLYHRUVSHFLILFWR
DOORZDGLDJQRVLVEDVHGXSRQVLJQVDQGV\PSWRPVDORQH:HVXJJHVW1$$7LIDYDLODEOHLQSDWLHQWV
ZLWKVXJJHVWLYHFOLQLFDOILQGLQJVHJHOHYDWHGYDJLQDOS+LQFUHDVHGQXPEHUVRISRO\PRUSKRQXFOHDU
OHXNRF\WHVEXWDQDEVHQFHRIPRWLOHWULFKRPRQDGVDQGFOXHFHOOVRQZHWPRXQWRUZKHQPLFURVFRS\LV
XQDYDLODEOHRUXQUHOLDEOH6HH
'LDJQRVLV
DERYH
,I1$$7IRUWULFKRPRQLDVLVLVQRWDYDLODEOHUDSLGDQWLJHQWHVWVRU'1$K\EULGL]DWLRQSUREHVIRU
GLDJQRVLVRI7YDJLQDOLVDUHFRPPHUFLDOO\DYDLODEOHDQGFDQEHXVHGDVDQDOWHUQDWLYHWR1$$7RU
FXOWXUH1$$7DUHWKHVWDQGDUG6HH
5DSLGDQWLJHQDQG'1$K\EULGL]DWLRQSUREHV
DERYH
7UHDWPHQWLVLQGLFDWHGIRUERWKV\PSWRPDWLFDQGDV\PSWRPDWLFZRPHQDQGPHQ7UHDWPHQWUHGXFHV
WKHSUHYDOHQFHRI7YDJLQDOLVFDUULDJHLQWKHSRSXODWLRQUHOLHYHVV\PSWRPVDQGUHGXFHVWKHULVNRI
VHTXHODHLQFOXGLQJDFTXLVLWLRQWUDQVPLVVLRQRI+,9)RUQRQSUHJQDQWZRPHQDQGWKHLUVH[SDUWQHUV
ZHUHFRPPHQGDVLQJOHRUDOGRVHRIJUDPVRIDQLWURLPLGD]ROHGUXJHJPHWURQLGD]ROHWLQLGD]ROH
FRPSDUHGZLWKPXOWLGRVHUHJLPHQV*UDGH%6LQJOHGRVHWKHUDS\LVPRUHFRQYHQLHQWDQGDSSHDUV
WREHDVHIIHFWLYHDVPXOWLSOHGRVHWKHUDS\2UDODGPLQLVWUDWLRQLVPRUHHIIHFWLYHWKDQWRSLFDO
DGPLQLVWUDWLRQ6HH
1RQSUHJQDQWZRPHQ
DERYH
3DWLHQWVVKRXOGEHVFUHHQHGIRURWKHUVH[XDOO\WUDQVPLWWHGLQIHFWLRQV6HH6FUHHQLQJIRUVH[XDOO\
WUDQVPLWWHGLQIHFWLRQV
$OWKRXJKH[SHGLWHGSDUWQHUWKHUDS\(37LVHIIHFWLYHIRUWUHDWPHQWRI7ULFKRPRQDVLQIHFWLRQVZH
SUHIHUWKDWVH[XDOSDUWQHUVEHHYDOXDWHGVRWKH\FDQEHVFUHHQHGIRURWKHUVH[XDOO\WUDQVPLWWHG
LQIHFWLRQV+RZHYHU(37LVUHDVRQDEOHLIFRPSOLDQFHLVDQLVVXH6HH
6H[SDUWQHUV
DERYH
:HUHFRPPHQGWUHDWLQJV\PSWRPDWLFSUHJQDQWZRPHQZLWKFRQILUPHG7YDJLQDOLVLQIHFWLRQV*UDGH
%,QDGGLWLRQZHVXJJHVWWUHDWLQJDV\PSWRPDWLFSUHJQDQWZRPHQZLWKFRQILUPHGLQIHFWLRQ*UDGH
%0HWURQLGD]ROHJRUDOO\LQDVLQJOHGRVHLVXVHGLQSUHJQDQF\$OWHUQDWHGRVLQJZLWK
PHWURQLGD]ROHPJWZLFHGDLO\IRUILYHWRVHYHQGD\VPD\EHDVVRFLDWHGZLWKOHVVQDXVHDDQG
YRPLWLQJ(LWKHUUHJLPHQLVDFFHSWDEOH6HH
3UHJQDQWZRPHQ
DERYH
)RU+,9SRVLWLYHZRPHQZLWK7YDJLQDOLVZHVXJJHVWPHWURQLGD]ROHPJWZLFHSHUGD\IRUVHYHQ
GD\VUDWKHUWKDQVLQJOHGRVHWKHUDS\*UDGH%6HH
+,9LQIHFWHGZRPHQ
DERYH
)RUSDWLHQWVZLWKUHIUDFWRU\WULFKRPRQLDVLVLQFUHDVLQJWKHGRVHDQGGXUDWLRQRIPHWURQLGD]ROHRU
WLQLGD]ROHDUHWKHSULPDU\RSWLRQV6HH
5HIUDFWRU\FDVHV
DERYH
3DWLHQWVVKRXOGEHLQVWUXFWHGWRDYRLGLQWHUFRXUVHXQWLOWKH\DQGWKHLUSDUWQHUVKDYHFRPSOHWHG
WUHDWPHQWDQGDUHDV\PSWRPDWLFZKLFKJHQHUDOO\WDNHVDERXWDZHHN6HH
7UHDWPHQW
DERYH
:RPHQWUHDWHGIRUDGRFXPHQWHGWULFKRPRQDOLQIHFWLRQDUHUHWHVWHGZLWKLQWKUHHPRQWKVIROORZLQJ
WUHDWPHQWUHJDUGOHVVRIZKHWKHUWKH\EHOLHYHWKHLUVH[SDUWQHUVZHUHWUHDWHG7HVWLQJZLWK1$$7FDQEH
GRQHDVVRRQDVWZRZHHNVDIWHUFRPSOHWLQJWUHDWPHQW

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDOL





7ULFKRPRQLDVLV

8VHRI8S7R'DWHLVVXEMHFWWRWKH6XEVFULSWLRQDQG/LFHQVH$JUHHPHQW
5()(5(1&(6
 $QGHUVRQ05.OLQN.&RKUVVHQ$(YDOXDWLRQRIYDJLQDOFRPSODLQWV-$0$
 .LVVLQJHU3(SLGHPLRORJ\DQGWUHDWPHQWRIWULFKRPRQLDVLV&XUU,QIHFW'LV5HS
 +HVVHOWLQH+([SHULPHQWDOKXPDQYDJLQDOWULFKRPRQLDVLV-,QIHFW'LV
 6REHO-'6XEUDPDQLDQ&)R[PDQ%HWDO0L[HGYDJLQLWLVPRUHWKDQFRLQIHFWLRQDQGZLWKWKHUDSHXWLF
LPSOLFDWLRQV&XUU,QIHFW'LV5HS
 6XWWRQ06WHUQEHUJ0.RXPDQV(+HWDO7KHSUHYDOHQFHRI7ULFKRPRQDVYDJLQDOLVLQIHFWLRQDPRQJ
UHSURGXFWLYHDJHZRPHQLQWKH8QLWHG6WDWHV&OLQ,QIHFW'LV
 *LQRFFKLR&&&KDSLQ.6PLWK-6HWDO3UHYDOHQFHRI7ULFKRPRQDVYDJLQDOLVDQGFRLQIHFWLRQZLWK
&KODP\GLDWUDFKRPDWLVDQG1HLVVHULDJRQRUUKRHDHLQWKH8QLWHG6WDWHVDVGHWHUPLQHGE\WKH$SWLPD
7ULFKRPRQDVYDJLQDOLVQXFOHLFDFLGDPSOLILFDWLRQDVVD\-&OLQ0LFURELRO
 0HLWHV(/ODWD(%UD[WRQ-HWDO7ULFKRPRQDVYDJLQDOLVLQVHOHFWHG86VH[XDOO\WUDQVPLWWHGGLVHDVH
FOLQLFVWHVWLQJVFUHHQLQJDQGSUHYDOHQFH6H[7UDQVP'LV
 6HxD$&0LOOHU:&+REEV00HWDO7ULFKRPRQDVYDJLQDOLVLQIHFWLRQLQPDOHVH[XDOSDUWQHUV
LPSOLFDWLRQVIRUGLDJQRVLVWUHDWPHQWDQGSUHYHQWLRQ&OLQ,QIHFW'LV
 *D\GRV&$%DUQHV054XLQQ1HWDO7ULFKRPRQDVYDJLQDOLVLQIHFWLRQLQPHQZKRVXEPLWVHOI
FROOHFWHGSHQLOHVZDEVDIWHULQWHUQHWUHFUXLWPHQW6H[7UDQVP,QIHFW
 9DQ'HU3RO%.UDIW&6:LOOLDPV-$8VHRIDQDGDSWDWLRQRIDFRPPHUFLDOO\DYDLODEOH3&5DVVD\
DLPHGDWGLDJQRVLVRIFKODP\GLDDQGJRQRUUKHDWRGHWHFW7ULFKRPRQDVYDJLQDOLVLQXURJHQLWDO
VSHFLPHQV-&OLQ0LFURELRO
 9DQ'HU3RO%:LOOLDPV-$2UU'3HWDO3UHYDOHQFHLQFLGHQFHQDWXUDOKLVWRU\DQGUHVSRQVHWR
WUHDWPHQWRI7ULFKRPRQDVYDJLQDOLVLQIHFWLRQDPRQJDGROHVFHQWZRPHQ-,QIHFW'LV
 +HLQH30F*UHJRU-$7ULFKRPRQDVYDJLQDOLVDUHHPHUJLQJSDWKRJHQ&OLQ2EVWHW*\QHFRO

 &XGPRUH6/'HOJDW\./+D\ZDUG0F&OHOODQG6)HWDO7UHDWPHQWRILQIHFWLRQVFDXVHGE\
PHWURQLGD]ROHUHVLVWDQW7ULFKRPRQDVYDJLQDOLV&OLQ0LFURELRO5HY
 /$1&(/(<)0&(17(*$570*7ULFKRPRQDVYDJLQDOLVLQWKHPDOHWKHH[SHULPHQWDOLQIHFWLRQRID
IHZYROXQWHHUV/DQFHW
 =KDQJ=)%HJJ&%,V7ULFKRPRQDVYDJLQDOLVDFDXVHRIFHUYLFDOQHRSODVLD"5HVXOWVIURPDFRPELQHG
DQDO\VLVRIVWXGLHV,QW-(SLGHPLRO
 <DS(++R7+&KDQ<&HWDO6HUXPDQWLERGLHVWR7ULFKRPRQDVYDJLQDOLVLQLQYDVLYHFHUYLFDO
FDQFHUSDWLHQWV*HQLWRXULQ0HG
 6RSHU'(%XPS5&+XUW:*%DFWHULDOYDJLQRVLVDQGWULFKRPRQLDVLVYDJLQLWLVDUHULVNIDFWRUVIRUFXII
FHOOXOLWLVDIWHUDEGRPLQDOK\VWHUHFWRP\$P-2EVWHW*\QHFRO
 0RRGOH\3:LONLQVRQ'&RQQROO\&HWDO7ULFKRPRQDVYDJLQDOLVLVDVVRFLDWHGZLWKSHOYLF
LQIODPPDWRU\GLVHDVHLQZRPHQLQIHFWHGZLWKKXPDQLPPXQRGHILFLHQF\YLUXV&OLQ,QIHFW'LV

 *URGVWHLQ)*ROGPDQ0%&UDPHU':5HODWLRQRIWXEDOLQIHUWLOLW\WRKLVWRU\RIVH[XDOO\WUDQVPLWWHG
GLVHDVHV$P-(SLGHPLRO
 /DJD00DQRND$.LYXYX0HWDO1RQXOFHUDWLYHVH[XDOO\WUDQVPLWWHGGLVHDVHVDVULVNIDFWRUVIRU
+,9WUDQVPLVVLRQLQZRPHQUHVXOWVIURPDFRKRUWVWXG\$,'6
 6RUYLOOR).HUQGW37ULFKRPRQDVYDJLQDOLVDQGDPSOLILFDWLRQRI+,9WUDQVPLVVLRQ/DQFHW

 0F&OHOODQG566DQJDUH/+DVVDQ:0HWDO,QIHFWLRQZLWK7ULFKRPRQDVYDJLQDOLVLQFUHDVHVWKHULVN
RI+,9DFTXLVLWLRQ-,QIHFW'LV
 :DQJ&&0F&OHOODQG565HLOO\0HWDO7KHHIIHFWRIWUHDWPHQWRIYDJLQDOLQIHFWLRQVRQVKHGGLQJRI
KXPDQLPPXQRGHILFLHQF\YLUXVW\SH-,QIHFW'LV
 .LVVLQJHU3$PHGHH$&ODUN5$HWDO7ULFKRPRQDVYDJLQDOLVWUHDWPHQWUHGXFHVYDJLQDO+,9
VKHGGLQJ6H[7UDQVP'LV

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

 0RVWDG6%2YHUEDXJK-'H9DQJH'0HWDO+RUPRQDOFRQWUDFHSWLRQYLWDPLQ$GHILFLHQF\DQG
RWKHUULVNIDFWRUVIRUVKHGGLQJRI+,9LQIHFWHGFHOOVIURPWKHFHUYL[DQGYDJLQD/DQFHW

 .LVVLQJHU3$GDPVNL$7ULFKRPRQLDVLVDQG+,9LQWHUDFWLRQVDUHYLHZ6H[7UDQVP,QIHFW

 &RWFK0)3DVWRUHN-*QG1XJHQW53HWDO7ULFKRPRQDVYDJLQDOLVDVVRFLDWHGZLWKORZELUWKZHLJKW
DQGSUHWHUPGHOLYHU\7KH9DJLQDO,QIHFWLRQVDQG3UHPDWXULW\6WXG\*URXS6H[7UDQVP'LV

 0DQQ-50F'HUPRWW6*LOO76H[XDOO\WUDQVPLWWHGLQIHFWLRQLVDVVRFLDWHGZLWKLQFUHDVHGULVNRI
SUHWHUPELUWKLQ6RXWK&DUROLQDZRPHQLQVXUHGE\0HGLFDLG-0DWHUQ)HWDO1HRQDWDO0HG

 0DQQ-50F'HUPRWW6%DUQHV7/HWDO7ULFKRPRQLDVLVLQSUHJQDQF\DQGPHQWDOUHWDUGDWLRQLQ
FKLOGUHQ$QQ(SLGHPLRO
 0DQQ-50F'HUPRWW6$UHPDWHUQDOJHQLWRXULQDU\LQIHFWLRQDQGSUHHFODPSVLDDVVRFLDWHGZLWK$'+'
LQVFKRRODJHGFKLOGUHQ"-$WWHQ'LVRUG
 0DQQ-50F'HUPRWW6*UHJJ$*LOO7-0DWHUQDOJHQLWRXULQDU\LQIHFWLRQDQGVPDOOIRUJHVWDWLRQDO
DJH$P-3HULQDWRO
 6LOYHU%-*X\5-.DOGRU-0HWDO7ULFKRPRQDVYDJLQDOLVDVDFDXVHRISHULQDWDOPRUELGLW\D
V\VWHPDWLFUHYLHZDQGPHWDDQDO\VLV6H[7UDQVP'LV
 :RUNRZVNL.$%RODQ*$&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ6H[XDOO\WUDQVPLWWHGGLVHDVHV
WUHDWPHQWJXLGHOLQHV00:55HFRPP5HS
 6PLWK/0:DQJ0=DQJZLOO.<HK67ULFKRPRQDVYDJLQDOLVLQIHFWLRQLQDSUHPDWXUHQHZERUQ3HULQDWRO
 7HPHVYiUL3.HUHNHV$7HJH$6]DUND.'HPRQVWUDWLRQRI7ULFKRPRQDVYDJLQDOLVLQWUDFKHDO
DVSLUDWHVLQLQIDQWVZLWKHDUO\UHVSLUDWRU\IDLOXUH-0DWHUQ)HWDO1HRQDWDO0HG
 +RIIPDQ'-%URZQ*':LUWK)+HWDO8ULQDU\WUDFWLQIHFWLRQZLWK7ULFKRPRQDVYDJLQDOLVLQD
SUHPDWXUHQHZERUQLQIDQWDQGWKHGHYHORSPHQWRIFKURQLFOXQJGLVHDVH-3HULQDWRO
 &DUWHU-(:KLWKDXV.&1HRQDWDOUHVSLUDWRU\WUDFWLQYROYHPHQWE\7ULFKRPRQDVYDJLQDOLVDFDVH
UHSRUWDQGUHYLHZRIWKHOLWHUDWXUH$P-7URS0HG+\J
 +DPPLOO+$7ULFKRPRQDVYDJLQDOLV2EVWHW*\QHFRO&OLQ1RUWK$P
 :OQHU+DQVVHQ3.ULHJHU-16WHYHQV&(HWDO&OLQLFDOPDQLIHVWDWLRQVRIYDJLQDOWULFKRPRQLDVLV
-$0$
 .ULHJHU-17DP056WHYHQV&(HWDO'LDJQRVLVRIWULFKRPRQLDVLV&RPSDULVRQRIFRQYHQWLRQDOZHW
PRXQWH[DPLQDWLRQZLWKF\WRORJLFVWXGLHVFXOWXUHVDQGPRQRFORQDODQWLERG\VWDLQLQJRIGLUHFW
VSHFLPHQV-$0$
 )RXWV$&.UDXV6-7ULFKRPRQDVYDJLQDOLVUHHYDOXDWLRQRILWVFOLQLFDOSUHVHQWDWLRQDQGODERUDWRU\
GLDJQRVLV-,QIHFW'LV
 3HUO*(UURUVLQWKHGLDJQRVLVRIWULFKRPRQDVYDJLQDOLVLQIHFWLRQVDVREVHUYHGDPRQJSDWLHQWV
2EVWHW*\QHFRO
 %DURQ(-0LOOHU-0:HLQVWHLQ03HWDO$JXLGHWRXWLOL]DWLRQRIWKHPLFURELRORJ\ODERUDWRU\IRU
GLDJQRVLVRILQIHFWLRXVGLVHDVHVUHFRPPHQGDWLRQVE\WKH,QIHFWLRXV'LVHDVHV6RFLHW\RI
$PHULFD,'6$DQGWKH$PHULFDQ6RFLHW\IRU0LFURELRORJ\$60D&OLQ,QIHFW'LVH
 1\H0%6FKZHENH-5%RG\%$&RPSDULVRQRI$37,0$7ULFKRPRQDVYDJLQDOLVWUDQVFULSWLRQ
PHGLDWHGDPSOLILFDWLRQWRZHWPRXQWPLFURVFRS\FXOWXUHDQGSRO\PHUDVHFKDLQUHDFWLRQIRUGLDJQRVLV
RIWULFKRPRQLDVLVLQPHQDQGZRPHQ$P-2EVWHW*\QHFROH
 $QGUHD6%&KDSLQ.&&RPSDULVRQRI$SWLPD7ULFKRPRQDVYDJLQDOLVWUDQVFULSWLRQPHGLDWHG
DPSOLILFDWLRQDVVD\DQG%'DIILUP93,,,IRUGHWHFWLRQRI7YDJLQDOLVLQV\PSWRPDWLFZRPHQ
SHUIRUPDQFHSDUDPHWHUVDQGHSLGHPLRORJLFDOLPSOLFDWLRQV-&OLQ0LFURELRO
 &KDSLQ.$QGUHD6$37,0$7ULFKRPRQDVYDJLQDOLVDWUDQVFULSWLRQPHGLDWHGDPSOLILFDWLRQDVVD\
IRUGHWHFWLRQRI7ULFKRPRQDVYDJLQDOLVLQXURJHQLWDOVSHFLPHQV([SHUW5HY0RO'LDJQ
 6FKZHENH-5+REEV007D\ORU61HWDO0ROHFXODUWHVWLQJIRU7ULFKRPRQDVYDJLQDOLVLQZRPHQ
UHVXOWVIURPDSURVSHFWLYH86FOLQLFDOWULDO-&OLQ0LFURELRO
 /HYL0+7RUUHV-3LxD&.OHLQ56&RPSDULVRQRIWKH,Q3RXFK79FXOWXUHV\VWHPDQG'LDPRQG
V

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

PRGLILHGPHGLXPIRUGHWHFWLRQRI7ULFKRPRQDVYDJLQDOLV-&OLQ0LFURELRO
 %RUFKDUGW.$=KDQJ0=6KLQJ+)OLQN.$FRPSDULVRQRIWKHVHQVLWLYLW\RIWKH,Q3RXFK79
'LDPRQG
VDQG7ULFKRVHOPHGLDIRUGHWHFWLRQRI7ULFKRPRQDVYDJLQDOLV*HQLWRXULQ0HG
 +XSSHUW-6%DWWHLJHU%(%UDVOLQV3HWDO8VHRIDQLPPXQRFKURPDWRJUDSKLFDVVD\IRUUDSLG
GHWHFWLRQRI7ULFKRPRQDVYDJLQDOLVLQYDJLQDOVSHFLPHQV-&OLQ0LFURELRO
 -RQHV+(/LSSPDQ6$&DLDIID)LOKR++HWDO3HUIRUPDQFHRIDUDSLGVHOIWHVWIRUGHWHFWLRQRI
7ULFKRPRQDVYDJLQDOLVLQ6RXWK$IULFDDQG%UD]LO-&OLQ0LFURELRO
 &DPSEHOO/:RRGV9/OR\G7HWDO(YDOXDWLRQRIWKH26207ULFKRPRQDVUDSLGWHVWYHUVXVZHW
SUHSDUDWLRQH[DPLQDWLRQIRUGHWHFWLRQRI7ULFKRPRQDVYDJLQDOLVYDJLQLWLVLQVSHFLPHQVIURPZRPHQ
ZLWKDORZSUHYDOHQFHRILQIHFWLRQ-&OLQ0LFURELRO
 +XSSHUW-60RUWHQVHQ-(5HHG-/HWDO5DSLGDQWLJHQWHVWLQJFRPSDUHVIDYRUDEO\ZLWK
WUDQVFULSWLRQPHGLDWHGDPSOLILFDWLRQDVVD\IRUWKHGHWHFWLRQRI7ULFKRPRQDVYDJLQDOLVLQ\RXQJZRPHQ
&OLQ,QIHFW'LV
 /DUD7RUUH(3LQNHUWRQ-6$FFXUDF\RIGHWHFWLRQRIWULFKRPRQDVYDJLQDOLVRUJDQLVPVRQDOLTXLG
EDVHGSDSDQLFRODRXVPHDU$P-2EVWHW*\QHFRO
 :LHVH:3DWHO653DWHO6&HWDO$PHWDDQDO\VLVRIWKH3DSDQLFRODRXVPHDUDQGZHWPRXQWIRUWKH
GLDJQRVLVRIYDJLQDOWULFKRPRQLDVLV$P-0HG
 %DQGHD&,-RVHSK.6HFRU(:HWDO'HYHORSPHQWRI3&5DVVD\VIRUGHWHFWLRQRI7ULFKRPRQDV
YDJLQDOLVLQXULQHVSHFLPHQV-&OLQ0LFURELRO
 6FKZHENH-5%XUJHVV'7ULFKRPRQLDVLV&OLQ0LFURELRO5HY
 +DJHU:'%URZQ67.UDXV6-HWDO0HWURQLGD]ROHIRUYDJLQDOWULFKRPRQLDVLV6HYHQGD\YVVLQJOH
GRVHUHJLPHQV-$0$
 0DQRUDPD+76KHQR\'56LQJOHGRVHRUDOWUHDWPHQWRIYDJLQDOWULFKRPRQLDVLVZLWKWLQLGD]ROHDQG
PHWURQLGD]ROH-,QW0HG5HV
 )RUQD)*OPH]RJOX$0,QWHUYHQWLRQVIRUWUHDWLQJWULFKRPRQLDVLVLQZRPHQ&RFKUDQH'DWDEDVH6\VW
5HY&'
 7LGZHOO%+/XVKEDXJK:%/DXJKOLQ0'HWDO$GRXEOHEOLQGSODFHERFRQWUROOHGWULDORIVLQJOHGRVH
LQWUDYDJLQDOYHUVXVVLQJOHGRVHRUDOPHWURQLGD]ROHLQWKHWUHDWPHQWRIWULFKRPRQDOYDJLQLWLV-,QIHFW'LV

 GX%RXFKHW/6SHQFH055HLQ0)HWDO0XOWLFHQWHUFRPSDULVRQRIFORWULPD]ROHYDJLQDOWDEOHWVRUDO
PHWURQLGD]ROHDQGYDJLQDOVXSSRVLWRULHVFRQWDLQLQJVXOIDQLODPLGHDPLQDFULQHK\GURFKORULGHDQG
DOODQWRLQLQWKHWUHDWPHQWRIV\PSWRPDWLFWULFKRPRQLDVLV6H[7UDQVP'LV
 7KLQ516\PRQGV0$%RRNHU5HWDO'RXEOHEOLQGFRPSDULVRQRIDVLQJOHGRVHDQGDILYHGD\
FRXUVHRIPHWURQLGD]ROHLQWKHWUHDWPHQWRIWULFKRPRQLDVLV%U-9HQHU'LV
 +HOPV'-0RVXUH'-6HFRU:(:RUNRZVNL.$0DQDJHPHQWRIWULFKRPRQDVYDJLQDOLVLQZRPHQ
ZLWKVXVSHFWHGPHWURQLGD]ROHK\SHUVHQVLWLYLW\$P-2EVWHW*\QHFROH
 /RVVLFN-*7UHDWPHQWRIVH[XDOO\WUDQVPLWWHGYDJLQRVLVYDJLQLWLV5HY,QIHFW'LV6XSSO
6
 &HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ([SHGLWHGSDUWQHUWKHUDS\LQWKHPDQDJHPHQWRIVH[XDOO\
WUDQVPLWWHGGLVHDVHV86'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV$WODQWD*$
 .LVVLQJHU36FKPLGW10RKDPPHG+HWDO3DWLHQWGHOLYHUHGSDUWQHUWUHDWPHQWIRU7ULFKRPRQDV
YDJLQDOLVLQIHFWLRQDUDQGRPL]HGFRQWUROOHGWULDO6H[7UDQVP'LV
 2NXQ1*URQDX.$+DQQDK0($QWLELRWLFVIRUEDFWHULDOYDJLQRVLVRU7ULFKRPRQDVYDJLQDOLVLQ
SUHJQDQF\DV\VWHPDWLFUHYLHZ2EVWHW*\QHFRO
 *OPH]RJOX$0$]KDU0,QWHUYHQWLRQVIRUWULFKRPRQLDVLVLQSUHJQDQF\&RFKUDQH'DWDEDVH6\VW
5HY&'
 0DQQ-50F'HUPRWW6=KRX/HWDO7UHDWPHQWRIWULFKRPRQLDVLVLQSUHJQDQF\DQGSUHWHUPELUWKDQ
REVHUYDWLRQDOVWXG\-:RPHQV+HDOWK/DUFKPW
 6WULQJHU(5HDG-6+RIIPDQ,HWDO7UHDWPHQWRIWULFKRPRQLDVLVLQSUHJQDQF\LQVXE6DKDUDQ$IULFD
GRHVQRWDSSHDUWREHDVVRFLDWHGZLWKORZELUWKZHLJKWRUSUHWHUPELUWK6$IU0HG-
 .RVV&$%DUDV'&/DQH6'HWDO,QYHVWLJDWLRQRIPHWURQLGD]ROHXVHGXULQJSUHJQDQF\DQGDGYHUVH
ELUWKRXWFRPHV$QWLPLFURE$JHQWV&KHPRWKHU
 1DWLRQDOJXLGHOLQHIRUWKHPDQDJHPHQWRI7ULFKRPRQDVYDJLQDOLV&OLQLFDO(IIHFWLYHQHVV*URXS

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

$VVRFLDWLRQIRU*HQLWRXULQDU\0HGLFLQHDQGWKH0HGLFDO6RFLHW\IRUWKH6WXG\RI9HQHUHDO'LVHDVHV
6H[7UDQVP,QIHFW6XSSO6
 'UXJVLQ3UHJQDQF\DQG/DFWDWLRQ%ULJJV**)UHHPDQ5.(GV:ROWHUV.OXZHU+HDOWK
3KLODGHOSKLDS
 *ROGHQEHUJ5/0ZDWKD$5HDG-6HWDO7KH+3716WXG\WKHHIILFDF\RIDQWLELRWLFVWRSUHYHQW
FKRULRDPQLRQLWLVDQGSUHWHUPELUWK$P-2EVWHW*\QHFRO
 'UXJVDQG/DFWDWLRQ'DWDEDVH/DFW0HG0HWURQLGD]ROHKWWSWR[QHWQOPQLKJRYFJL
ELQVLVVHDUFKI"WHPSaG1R]RV$FFHVVHGRQ)HEUXDU\
 /DFWPHG$YDLODEOHDWKWWSWR[QHWQOPQLKJRYFJLELQVLVVHDUFKI"WHPSa514:T$FFHVVHGRQ
-DQXDU\
 .LVVLQJHU30HQD//HYLVRQ-HWDO$UDQGRPL]HGWUHDWPHQWWULDOVLQJOHYHUVXVGD\GRVHRI
PHWURQLGD]ROHIRUWKHWUHDWPHQWRI7ULFKRPRQDVYDJLQDOLVDPRQJ+,9LQIHFWHGZRPHQ-$FTXLU
,PPXQH'HILF6\QGU
 $GDPVNL$&ODUN5$0HQD/HWDO7KHLQIOXHQFHRI$57RQWKHWUHDWPHQWRI7ULFKRPRQDVYDJLQDOLV
DPRQJ+,9LQIHFWHGZRPHQ&OLQ,QIHFW'LV
 *DWVNL00DUWLQ'+/HYLVRQ-HWDO7KHLQIOXHQFHRIEDFWHULDOYDJLQRVLVRQWKHUHVSRQVHWR
7ULFKRPRQDVYDJLQDOLVWUHDWPHQWDPRQJ+,9LQIHFWHGZRPHQ6H[7UDQVP,QIHFW
 .LUNFDOG\5'$XJRVWLQL3$VEHO/(HWDO7ULFKRPRQDVYDJLQDOLVDQWLPLFURELDOGUXJUHVLVWDQFHLQ86
FLWLHV67'6XUYHLOODQFH1HWZRUN(PHUJ,QIHFW'LV
 6REHO-'1\LUMHV\3%URZQ:7LQLGD]ROHWKHUDS\IRUPHWURQLGD]ROHUHVLVWDQWYDJLQDOWULFKRPRQLDVLV
&OLQ,QIHFW'LV
 6XEUDPDQLDQ&6REHO-'$FDVHRIKLJKOHYHOPHWURQLGD]ROHUHVLVWDQWWULFKRPRQLDVLVLQSUHJQDQF\
VXFFHVVIXOO\WUHDWHG-/RZ*HQLW7UDFW'LV
 6FKZHENH-5%DUULHQWHV)-3UHYDOHQFHRI7ULFKRPRQDVYDJLQDOLVLVRODWHVZLWKUHVLVWDQFHWR
PHWURQLGD]ROHDQGWLQLGD]ROH$QWLPLFURE$JHQWV&KHPRWKHU
 6REHO-'1DJDSSDQ91\LUMHV\30HWURQLGD]ROHUHVLVWDQWYDJLQDOWULFKRPRQLDVLVDQHPHUJLQJ
SUREOHP1(QJO-0HG
 'DQ06REHO-')DLOXUHRIQLWD]R[DQLGHWRFXUHWULFKRPRQLDVLVLQWKUHHZRPHQ6H[7UDQVP'LV

 1\LUMHV\3:HLW]09*HORQH63)HNHWH73DURPRP\FLQIRUQLWURLPLGD]ROHUHVLVWDQWWULFKRPRQRVLV
/DQFHW
 3RSSH:$1LWURLPLGD]ROHUHVLVWDQWYDJLQDOWULFKRPRQLDVLVWUHDWHGZLWKSDURPRP\FLQ(XU-2EVWHW
*\QHFRO5HSURG%LRO
 G
2UR/&3DUD]]LQL)1DOGL//D9HFFKLD&%DUULHUPHWKRGVRIFRQWUDFHSWLRQVSHUPLFLGHVDQG
VH[XDOO\WUDQVPLWWHGGLVHDVHVDUHYLHZ*HQLWRXULQ0HG
7RSLF9HUVLRQ

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

*5$3+,&6
+HPRUUKDJHVRQFHUYL[LQWULFKRPRQLDVLVLQIHFWLRQ

3XQFWDWHKHPRUUKDJHVRQFHUYL[
*UDSKLF9HUVLRQ

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

&OLQLFDOILQGLQJVLQZRPHQZLWKYDJLQLWLV
1RUPDO
ILQGLQJV

3DUDPHWHU
6\PSWRPV

%DFWHULDO
YDJLQRVLV

7ULFKRPRQLDVLV

3UXULWXV
VRUHQHVV

0DORGRURXV
GLVFKDUJHQR

0DORGRURXV
GLVFKDUJHEXUQLQJ

G\VSDUHXQLD

G\VSDUHXQLD

SRVWFRLWDOEOHHGLQJ
G\VSDUHXQLD
G\VXULD

1RUPDOYDJLQDO

9XOYDUHU\WKHPD

2IIZKLWHJUD\

7KLQJUHHQ\HOORZ

GLVFKDUJH
FRQVLVWVRI
WRP/IOXLG
SHU
KRXUVZKLFK

DQGRUHGHPD
'LVFKDUJHPD\
EHZKLWHDQG
FOXPS\DQGPD\
RUPD\QRW

WKLQGLVFKDUJH
WKDWFRDWVWKH
YDJLQD

GLVFKDUJH
YXOYRYDJLQDO
HU\WKHPD

LVZKLWHRU
WUDQVSDUHQW
WKLQRUWKLFN
DQGPRVWO\
RGRUOHVV

DGKHUHWR
YDJLQD

9DJLQDOS+

WR

WR

!

WR

$PLQHWHVW

1HJDWLYH

1HJDWLYH

3RVLWLYHLQ
SHUFHQWRI

2IWHQSRVLWLYH

6LJQV

1RQHRUPLOG
WUDQVLHQW

9XORYDJLQDO
FDQGLGLDVLV

SDWLHQWV
6DOLQH
PLFURVFRS\

301(&UDWLR
URGV
GRPLQDWH

301(&UDWLR
URGV
GRPLQDWH

301(&
ORVVRIURGV
LQFUHDVHG

301PL[HG
IORUDPRWLOH
WULFKRPRQDGV

VTXDPHV

VTXDPHV
SVHXGRK\SKDH
SUHVHQWLQ
DERXW
SHUFHQWRI

FRFFREDFLOOL
FOXHFHOOV
FRPSULVHDW
OHDVWSHUFHQW
RIHSLWKHOLDO

SUHVHQWLQDERXW
SHUFHQWRISDWLHQWV

SDWLHQWV

FHOOVSUHVHQWLQ
!SHUFHQWRI
SDWLHQWV

EXGGLQJ\HDVW
IRUQRQDOELFDQV
&DQGLGD
SHUFHQW
SRWDVVLXP
K\GUR[LGH
PLFURVFRS\

1HJDWLYH

3VHXGRK\SKDH
LQDERXW
SHUFHQWRI
SDWLHQWV

1HJDWLYH

1HJDWLYH

2WKHUWHVWV

,IPLFURVFRS\
QRQGLDJQRVWLF

4XDQWLWDWLYH
*UDPVWDLQHJ
1XJHQWFULWHULD
+D\,VRQ
FULWHULD

,IPLFURVFRS\
QRQGLDJQRVWLF

&XOWXUH
'1$
K\EULGL]DWLRQ
SUREHHJ
$IILUP93,,,

'1$
+\EULGL]DWLRQ

&XOWXUHHJ,Q3RXFK
79FXOWXUHV\VWHP
5DSLGDQWLJHQWHVW
HJ2620
7ULFKRPRQDV5DSLG

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

SUREHHJ
$IILUP93,,,

7HVW

&XOWXUHRIQR
YDOXH

DPSOLILFDWLRQWHVW
HJ$37,0$
7ULFKRPRQDV
YDJLQDOLVWHVW

1XFOHLFDFLG

'1$+\EULGL]DWLRQ
SUREHHJ$IILUP93
,,,
'LIIHUHQWLDO
GLDJQRVLV

3K\VLRORJLF
OHXNRUUKHD

&RQWDFWLUULWDQW
RUDOOHUJLF

(OHYDWHGS+LQ
WULFKRPRQLDVLV

3XUXOHQWYDJLQLWLV
GHVTXDPDWLYH

YXOYDU
GHUPDWLWLV
FKHPLFDO
LUULWDWLRQIRFDO
YXOYLWLV
YXOYRG\QLD

DWURSKLF
YDJLQLWLVDQG
GHVTXDPDWLYH
LQIODPPDWRU\
YDJLQLWLV

LQIODPPDWRU\
YDJLQLWLVDWURSKLF
YDJLQLWLVHURVLYH
OLFKHQSODQXV

301SRO\PRUSKRQXFOHDUOHXNRF\WHV(&YDJLQDOHSLWKHOLDOFHOOV
*UDSKLF9HUVLRQ

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

7ULFKRPRQDVYDJLQDOLV

+LJKSRZHUPLFURVFRS\UHYHDOLQJ7ULFKRPRQDVYDJLQDOLVZLWKHDVLO\
LGHQWLILHGIODJHOOD
&RXUWHV\RI-DFN'6REHO0'DQG:LOOLDP(6HFRU
*UDSKLF9HUVLRQ

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO





7ULFKRPRQLDVLV

'LVFORVXUHV
'LVFORVXUHV-DFN'6REHO0'1RWKLQJWRGLVFORVH5REHUW/%DUELHUL0'1RWKLQJWRGLVFORVH.ULVWHQ(FNOHU0')$&2*
1RWKLQJWRGLVFORVH
&RQWULEXWRUGLVFORVXUHVDUHUHYLHZHGIRUFRQIOLFWVRILQWHUHVWE\WKHHGLWRULDOJURXS:KHQIRXQGWKHVHDUHDGGUHVVHGE\YHWWLQJ
WKURXJKDPXOWLOHYHOUHYLHZSURFHVVDQGWKURXJKUHTXLUHPHQWVIRUUHIHUHQFHVWREHSURYLGHGWRVXSSRUWWKHFRQWHQW$SSURSULDWHO\
UHIHUHQFHGFRQWHQWLVUHTXLUHGRIDOODXWKRUVDQGPXVWFRQIRUPWR8S7R'DWHVWDQGDUGVRIHYLGHQFH
&RQIOLFWRILQWHUHVWSROLF\

KWWSZZZXSWRGDWHFRPFRQWHQWVWULFKRPRQLDVLV"WRSLF.H\ 2%*<1) HODSVHG7LPH0V  VRXUFH VHDUFKBUHVXOW VHDUFK7HUP WULFRPRQDVYDJLQDO