Professional Documents
Culture Documents
Strategy
Issues Paper
CONTENTS
OVERVIEW.................................................................................................................................... 1
BACKGROUND............................................................................................................................. 2
Applying Lessons Learned From the ER/LA REMS Assessment to the Development of the OA
APPENDICES .............................................................................................................................. 13
Mitigation Strategy
OVERVIEW
The Opioid Analgesic Risk Evaluation and Mitigation Strategy (OA REMS), required by
the Food and Drug Administration (FDA) and implemented by the manufacturers of
opioid analgesics intended for use in an outpatient setting, is one strategy among multiple
national and state efforts to reduce the risk of abuse, misuse, addiction, overdose, and
deaths caused by prescription opioid analgesics. The primary component of this risk
evaluation and mitigation strategy (REMS) is a voluntary education program for
prescribers, nurses, pharmacists, and other health care providers involved in the treatment
or monitoring of patients with pain. A consortium of manufacturers, known as the REMS
Program Companies (RPC), conducts annual assessments of the OA REMS and provides
summaries of data that are used to determine whether the REMS is meeting its risk
mitigation goals.
In January 2019, FDA issued a draft guidance for industry REMS Assessment: Planning
and Reporting, which describes how to develop a REMS assessment plan and the
selection of metrics and data sources that will be used to assess whether the program is
meeting its risk mitigation goals.1 The REMS assessment plan for the OA REMS
includes a mixed methods approach as recommended in the draft guidance.
FDA is holding a scientific workshop to publicly discuss methods to evaluate the OA
REMS. The workshop has three main topics for discussion:
1. Specific, measurable outcomes that might demonstrate that voluntary training,
based on the Opioid Analgesics REMS Education Blueprint for Health Care
Providers Involved in the Treatment and Monitoring of Patients With Pain (FDA
Blueprint), is effective in educating prescribers and other health care providers
(including pharmacists and nurses) involved in the treatment and monitoring of
patients in pain about recommended pain management practices and the
appropriate use of opioid analgesics
2. The feasibility of conducting a study to specifically evaluate the effect of OA
REMS-compliant continuing education (CE) on prescriber behavior and patient
outcomes amidst the numerous concomitant strategies to combat the opioid crisis
at the Federal, State, and local levels
3. Whether there might be suitable alternative study approaches to better understand
the influence of CE, more broadly, on pain management practice and patient
outcomes if a study to directly measure the impact of REMS-compliant CE is
thought to be infeasible
1
When final this guidance will represent FDA’s current thinking on this topic. For the most recent version
of a guidance, check the FDA guidance web page at https://www.fda.gov/regulatory-information/search
fda-guidance-documents.
BACKGROUND
2
A more detailed history of the ER/LA REMS may be found in the FDA background document for the
May 3 and 4, 2016, joint meeting of the Drug Safety and Risk Management Advisory Committee and the
Anesthetic and Analgesic Drug Products Advisory Committee, available at
https://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeetingMaterials/Drugs/AnestheticAnd
AnalgesicDrugProductsAdvisoryCommittee/UCM497290.pdf, accessed July 30, 2020.
3
For the purposes of the ER/LA REMS, an ER/LA prescriber was defined as clinicians who are registered
with the Drug Enforcement Agency to prescribe Schedule II and/or III controlled substances and have
written at least one ER/LA opioid analgesic prescription in the past year.
Products (AADP) Advisory Committee (meeting of the DSaRM and AADP Advisory
Committees or joint advisory committee meeting) to discuss whether the ER/LA REMS
was meeting its goals and assuring safe use of ER/LA opioid analgesics; whether it was
not unduly burdensome to patient access to the drugs; and to the extent practicable,
whether it minimized the burden to the health care delivery system. Findings and
conclusions from REMS assessments were presented, and committee members agreed
that it could not be determined that the REMS was meeting its goal of reducing serious
adverse outcomes resulting from inappropriate prescribing, misuse, and abuse of ER/LA
opioid analgesics. Some of the challenges of determining whether the goals were met
included issues with representativeness of patient and prescriber surveys, which limited
the evaluation of patient and prescriber understanding of risks and safe prescribing and
use practices for these products. Observed trends in the utilization of ER/LA opioid
analgesics and adverse events of interest also complicated the evaluation of the ER/LA
REMS, because these trends predated the implementation of the REMS. In addition,
multiple concurrent activities directed at reducing harm from opioid analgesics also made
the evaluation of the ER/LA REMS difficult. The DSaRM and AADP Advisory
Committees acknowledged challenges with evaluating the REMS-compliant training;
however, they maintained that it was important to rigorously assess the REMS to
determine whether it was meeting its goals.
Despite the challenges with assessing the ER/LA REMS and determining whether it was
meeting its goals, the DSaRM and AADP Advisory Committees ultimately advised that
the ER/LA REMS be modified to:
under the ER/LA REMS, the RPC is fulfilling its requirement to provide education under
the OA REMS through unrestricted grants to CE Providers of Accredited CE.
The OA REMS covers approximately 360 individual products that are listed on the FDA
REMS website, available at
https://www.accessdata.fda.gov/scripts/cder/rems/index.cfm?event=RemsDetails.page&R
EMS=17.
The goal of the OA REMS is to educate prescribers and other health care providers
(including pharmacists and nurses) on the treatment and monitoring of patients with pain.
The education provided through the REMS is based on the FDA Blueprint (Appendix 1).
Through better education, the health care team will have an improved understanding of
how to manage pain and the role of opioid analgesics as well as nonpharmacologic and
non-opioid analgesics in pain management. The education will also provide information
about the risks of opioids and use of other therapies, which is intended to assist health
care providers in reducing adverse outcomes of addiction; unintentional overdose; and
death resulting from inappropriate prescribing, abuse, and misuse. The REMS aims to
accomplish this goal by:
1. Ensuring that training based on the FDA Blueprint is effective in educating
prescribers and other health care providers involved in the treatment and
monitoring of patients in pain (including pharmacists and nurses) about
recommended pain management practices and appropriate use of opioid
analgesics.
2. Informing patients about their roles and responsibilities regarding their pain
treatment plan, including the risks of opioid analgesics and how to use and store
them safely, as outlined in the Medication Guides and Patient Counseling Guide
for opioid analgesics.
The OA REMS requires that the REMS be assessed at 6 months, 1 year, and annually
thereafter from the date of approval of the REMS. The full assessment plan for the OA
REMS can be found in Appendix 2. The assessment includes:
OVERVIEW OF ISSUES
4
Moore Jr. DE, Green JS, Gallis HA, 2009, Achieving Desired Results and Improved Outcomes:
Integrating Planning and Assessment Throughout Learning Activities. J Contin Educ Health Prof, 29(1):1
5.
5
Wakefield JG, 2004, Commitment to Change: Exploring Its Role in Changing Physician Behavior
through Continuing Education, J Contin Educ Health Prof, 24:197-204.
6
Cervero R, Gaines J, 2015, The Impact of CME on Physician Performance and Patient Health Outcomes:
An Updated Synthesis of Systematic Reviews, J Contin Educ Health Prof, 35(2):131-138.
The CE community (i.e., CE Accreditors and CE Providers) has encouraged the RPC to
fund a variety of educational activity types. The most recently awarded grants for the OA
REMS (December 2018) awarded funding to 14 grant applications with a variety of
formats, including didactic, case-based, multimedia, interactive, and adaptive learning,
and the RPC stated their aim to fund grants for programs with unique and innovative
formats that are more conducive to the adult learner.7
• Though a large number of ER/LA opioid prescribers (as well as other health care
providers) completed REMS training, these numbers did not reach the
prespecified targets outlined in the REMS and represented a minority of ER/LA
opioid prescribers.
• Surveys of knowledge of both patients and prescribers showed overall a good
understanding of the risks and safe use of ER/LA opioid analgesics; however,
methodological flaws limited the representativeness of the surveyed populations
to the overall population of ER/LA prescribers and patients treated with ER/LA
opioid analgesics, which did not allow a robust assessment of the impact of
training on prescriber and patient knowledge.
• Some measures of adverse outcomes of interest (e.g., poison center calls
involving misuse or abuse of ER/LA opioid analgesics) did decrease following
the approval of the ER/LA REMS; however, these decreases began before
approval of the REMS, and decreases were also seen for drug classes not covered
by the REMS. Therefore, it was not clear whether the implementation of the
REMS contributed to the decline, particularly given the evolving landscape of the
opioid crisis and the many other concurrent efforts to reduce inappropriate
prescribing and opioid overdoses.
• Given that a minority of prescribers had completed REMS-compliant training and
changes in prescribing or patient outcomes could not be linked to completion of
CE, it was unclear whether any changes in prescribing patterns or patient
7
Information on available accredited REMS CE can be found at
https://opioidanalgesicrems.com/RpcUI/home.u, accessed August 7, 2020.
outcomes were even occurring in the subset of prescribers who had completed
training.
In the background document8 for the May 3 and 4, 2016, joint meeting of the DSaRM
and AADP Advisory Committees, FDA noted:
Without being able to link prescriber participation in REMS training to changes
in practice or patient outcomes, it is exceedingly difficult to assess the impact of
the REMS on any of the surveillance outcomes. Discussion is needed to explore
whether it would be worthwhile and feasible to conduct a study that directly
examines the association between provider participation in trainings and specific
desired changes in prescribing or practice behaviors or patient outcomes.
Although it would be challenging, this type of study could augment and
complement an evaluation on the impact of REMS training on prescriber
knowledge and self-reported behavior change. A discussion of such a study
would need to address issues such as study design, sample size, data sources,
cohort selection and defining exposure, defining and operationalizing outcome
metrics, and controlling for confounding.
At the joint advisory committee meeting, FDA presented for consideration and discussion
a study design evaluating changes in selected outcome measures for prescribers who
complete REMS training compared with prescribers who have not. A number of
challenges were anticipated with such a design. Prescriber-level data on training
completion, prescribing patterns, and patient outcomes would need to be linked.
Outcomes, time frames, and appropriate study population and settings would need to be
carefully selected, defined, and operationalized. Also, selection bias and other
confounding factors would have to be adequately addressed. It was unclear whether such
a study would indeed be feasible and likely to yield valuable findings.
The May 3 and 4, 2016, joint advisory committee panel provided thoughts on challenges
to such an evaluation, including the likelihood of detecting a change in prescriber
behavior from one educational intervention, the difficulty in defining inappropriate
prescribing, and the feasibility of an observational study that would capture the outcome
of appropriate prescribing. One panelist stated that educating prescribers on how to safely
use these products empirically makes sense; however, attempting to prove that prescriber
behavior and patient outcomes actually improve as a result may not be possible and
would likely be unsuccessful.
Following the May 3 and 4, 2016, joint advisory committee meeting, a team was formed
in FDA’s Center for Drug Evaluation and Research (CDER) to propose a REMS
modification that considered the DSaRM and AADP Advisory Committees’ advice. The
team focused on three proposed modifications to the REMS: (1) including IR opioid
analgesics; (2) broadening the educational content to include general pain management
principles; and (3) expanding training targets to all health care providers involved in the
care of patients with pain. As part of the proposed modifications, the FDA team also
8
Available at
https://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeetingMaterials/Drugs/AnestheticAnd
AnalgesicDrugProductsAdvisoryCommittee/UCM497290.pdf, p. 161.
revised the REMS goals and the assessment plan to include methods and metrics that
would more rigorously evaluate the REMS intervention. Similar to the ER/LA REMS
assessment plan, the OA REMS assessment plan includes training completion numbers,
audits of CE activities for content and quality, stakeholder knowledge surveys, drug use
trends and patterns, and surveillance of adverse events of interest as well as the CE
Providers’ requirement for post-training knowledge assessments for participants to obtain
credit. However, the OA REMS assessment plan also includes methods and metrics to
more rigorously evaluate the REMS intervention, including:
• The development and validation of a new instrument for use across several
different CE formats to evaluate participant knowledge before and after
completing an activity to better understand how CE completion affects knowledge
about best pain management practices and appropriate opioid prescribing. A
patient focus group component would be added to collect information about
patient experiences around pain management.
• An evaluation of the overall pain and opioid CE program landscape in the United
States, and governmental and nongovernmental policies targeting opioid
prescribing would be provided to inform concurrent educational interventions.
• An evaluation of the effect of completing REMS-compliant CE on participants’
behavior and patient outcomes, and on any barriers that providers may face in
treating patients with pain according to the best practices outlined in the FDA
Blueprint, would be provided.
In addition, following the May 3 and 4, 2016, joint advisory committee meeting, FDA
directed the RPC to submit concept papers on the evaluation of the impact of the ER/LA
REMS on:
• Prescribing practices and patient outcomes
• Prescriber and patient knowledge using alternate study designs
• Patient access
In June 2018, the RPC provided a report of a preliminary assessment of the impact of a
single large ER/LA REMS-compliant CE program, the Pri-Med CE program, on opioid
prescribing patterns. This report included results of a study that linked the National
Prescriber Index (NPI) numbers of prescriber CE completers and non-completers with
those providers’ opioid analgesic prescriptions dispensed, using the IQVIA Real-World
Data Prescription claims file. Comparisons of opioid prescribing characteristics in the
year after Pri-Med CE completion were compared to the same measures in those
prescribers during the year before the education, as well as to these measures in
prescribers who did not complete Pri-Med CE training. Neither of these comparisons
demonstrated measurable differences either in overall opioid prescribing volume or in
discouraged practices, such as prescribing high-dose opioid analgesics to opioid-naïve
patients and concomitant dispensing of ER/LA opioid analgesics with central nervous
system depressant medications. It was also noted, however, that the providers included in
the study came overwhelmingly from primary care and had very low volume of opioid
prescribing, in general. In addition, despite baseline matching of CE completers and non
completers on categories of opioid prescription volume, prescribers who did not complete
the Pri-Med CE had subsequent 20 to 25 percent lower opioid prescription volume than
those who did, suggesting that providers with a greater expectation of prescribing opioids
may have self-selected to pursue training. Report authors noted that the study design did
not account for confounding by secular trends and other interventions to influence opioid
prescribing behavior.
To date, the Pri-Med CE program is the only RPC-funded REMS CE provider that has
captured participant NPI numbers. Both CE Providers and Accreditors have cautioned
FDA against requiring collection of NPI numbers of CE participants based on privacy
concerns as well as the likelihood of missing some members of the health care team who
do not have NPI numbers. It should also be noted that in the 2018 Request for
Applications for grant support for REMS-compliant CE, Pri-Med was not awarded grant
funding to provide OA REMS-compliant CE.
Despite these efforts to improve the assessment of the OA REMS, many challenges
remain. Foremost among these is the wide variety of CE venues, formats, and targeted
health care provider types for the currently funded REMS CE activities, as well as the
expectations of effect from a one-time completion of the CE. In addition, multiple
concurrent education activities from non-REMS sources may make the effect of REMS-
compliant CE more difficult to detect.
9
Centers for Disease Control and Prevention. Quality Improvement and Care Coordination: Implementing
the CDC Guideline for Prescribing Opioids for Chronic Pain. 2018. National Center for Injury Prevention
and Control, Division of Unintentional Injury Prevention, Atlanta, GA. Available at
https://www.cdc.gov/drugoverdose/pdf/prescribing/CDC-DUIP
QualityImprovementAndCareCoordination-508.pdf.
access to NPI numbers for prescribers who have completed REMS-compliant CE and a
data resource that can be linked to the NPI, possibly using an irreversible encryption
technique to preserve prescriber anonymity while allowing linkage of diverse data
streams.
Subsequently, the RPC’s Concurrent Education Interventions Report, which describes
other CE programs related to opioid prescribing and pain management in the United
States (Appendix 4), and the RPC’s Legislative and Policy Changes Report, which
describes governmental and nongovernmental policies targeting opioid prescribing
(Appendix 4), were completed (both also required as part of the 12-month assessment
report, as described above). Following receipt of these reports, the authors of the White
Paper submitted an addendum (Appendix 5) stating reasons why the observational
population-level assessment study proposed in the White Paper (and described above)
would not be feasible. The authors describe how the impact of 273 existing non-REMS
CE programs, many of which had content that overlapped that of REMS-compliant CE,
and the 526 identified policies directed at opioid prescribing provide insurmountable
barriers to evaluate the impact of OA REMS-compliant CE. Given the widespread
requirements for opioid-related CE from State medical boards, the authors note that the
options for a concurrent comparator group become extremely limited, because the few
providers who have not received any training may no longer be good representatives of
the counterfactual scenario, i.e., usual care without any effects of recent CE training. In
addition, considering the hundreds of recent laws and policies related to opioid
prescribing being implemented variably across States and local areas at different times,
the authors opined that adjusting for all of these impacts on prescribing trends using
statistical modeling is “aspirational at best, and may be foolhardy.” The addendum
suggested, instead, the ongoing monitoring of prescription patterns at the State level and
comparing them to CDC guidelines to assess the net impact of the forces changing opioid
prescribing practice in the United States.
Members of the FDA REMS Assessment review team met to discuss the White Paper and
the addendum described above and agreed that the proposed claims-based study would
likely face some potentially insurmountable hurdles and may yield little useful
information on the specific impact of the REMS-compliant CE activities on prescriber
behavior and patient outcomes. Some team members noted, however, that the RPC had
only proposed one study design—a large retrospective, observational population-based
study using prescription claims data—then subsequently determined that it would be
infeasible. The RPC did not share any assessments of the feasibility of any additional
designs or approaches, for example, smaller, targeted investigations within individual
health care systems; prospective studies; or interventional designs (i.e., pragmatic trials).
Such approaches, however, would still face similar challenges as the claims-based study
proposed by the RPC, including (1) identifying an appropriate study population, (2)
identifying and operationalizing meaningful outcome metrics capable of detecting
potentially small and highly variable effects of CE, (3) isolating any effects of the
REMS-compliant CE from the many other policies and educational activities in this area,
and (4) interpreting findings in light of the widely varying formats and participant
compositions of funded REMS-compliant CE programs.
10
Specifically, regarding meaningful outcome metrics, it is important to note that the FDA
Blueprint largely consists of statements such as “[health care providers] should be
knowledgeable about….” rather than specific practices that should occur, such as “pain
contracts must be completed for all patients receiving opioid analgesics.” Considering
that the FDA Blueprint addresses pain management practices more broadly rather than
just opioid analgesic prescribing, determining which are key practice measures to
evaluate in a given prescriber population and determining how to collect information on
whether those practices have changed or differ across groups is scientifically challenging.
Also, given the plethora of CE activities available, it is unclear how well the results of a
study of one or a subset of CE activities might be generalizable to the wide variety of
REMS-compliant CE activities. In addition, the inclusion of other, non-prescriber
members of the health care delivery team as targets for REMS-complaint CE
acknowledges their contribution to facilitating best practices in pain management. It is
unclear, however, how studies focused on evaluating prescriber behavior and the
outcomes of patients linked to those prescribers would incorporate the contributions of
other health care professionals in achieving safer prescribing practices and optimizing
outcomes for patients with pain.
Given these many challenges, FDA REMS Assessment review team considered whether
a pilot study or studies may be of value to further assess the feasibility of different
approaches to studying the effect of REMS-compliant CE on prescriber behavior and
patient outcomes. The team also considered whether alternative approaches should be
explored if it is ultimately determined that a rigorous evaluation of the effect of REMS-
compliant CE on practice and patient outcomes is infeasible. For example, our
understanding of the role of CE might be enhanced by a mixed-methods investigation of
the major drivers of pain management practice and opioid prescribing in the U.S. health
care system, including the barriers to change and reactions to the many recent efforts to
reduce opioid analgesic prescribing.
11
and identify the effect that REMS-compliant CE has on prescriber behavior and
patient outcomes. Participants may also be asked to discuss:
• Whether a pilot study would be informative and, if so, what features of the pilot
study would be key
• Which types of stakeholders might be well-positioned to conduct such a study
• How a study might evaluate the varying formats of CE activity
• Reasonable timing for outcome evaluation relative to completion of a CE activity
3. Whether there might be suitable alternative study approaches to better understand the
influence of CE, more broadly, on pain management practice and patient outcomes, if
a study to directly measure the impact of REMS-compliant CE is thought to be
infeasible.
12
APPENDICES
APPENDIX 1: FDA Opioid Analgesic REMS Education Blueprint for Health Care
Providers Involved in the Treatment and Monitoring of Patients with Pain
13
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
Introduction
Background
In July 2012, FDA approved the Extended-Release and Long-Acting (ER/LA) Opioid Analgesic
Risk Evaluation and Mitigation Strategy (ER/LA REMS) to ensure that the benefits of ER and
LA opioid analgesics used in the outpatient setting outweigh the risks. That REMS was modified
and the new Opioid Analgesic REMS includes, in addition to ER/LA opioid analgesics, all
immediate-release (IR) opioids used in the outpatient setting that are not already covered by
another REMS program. The Opioid Analgesic REMS is intended to support other national
efforts underway to address the misuse and abuse of prescription opioid analgesics.
As part of the Opioid Analgesic REMS, all opioid analgesic companies must provide the
following:
• Education for health care providers (HCPs) who participate in the treatment and
monitoring of pain. For the purpose of the Opioid Analgesic REMS, HCPs will include
not only prescribers, but also HCPs who participate in the treatment and monitoring of
patients who receive opioid analgesics, including pharmacists and nurses.
• Information for HCPs to use when counseling patients about the risks of ER, LA, and IR
opioid analgesic use.
To facilitate the development of CE educational materials and activities as part of the Opioid
Analgesic REMS, FDA has also revised the education blueprint ― originally designed to
facilitate development of CE educational materials under the ER/LA REMS. FDA has
completed the revisions to the FDA Education Blueprint for Health Care Providers Involved in
the Treatment and Monitoring of Patients with Pain (FDA Blueprint), following publication of a
draft version and consideration of received public comments.
The FDA Blueprint contains a high-level outline of the core educational messages that will be
included in the educational programs developed under the Opioid Analgesic REMS. The FDA
Blueprint focuses on the fundamentals of acute and chronic pain management and provides a
contextual framework for the safe prescribing of opioid analgesics. The core messages are
directed to prescribers, pharmacists, and nurses, but are also relevant for other HCPs who
participate in the management of pain. The course work is not intended to be exhaustive nor a
substitute for a more comprehensive pain management course.
1
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
Accrediting bodies and CE providers will ensure that the CE activities developed comply with
the standards for CE of the Accreditation Council for Continuing Medical Education, 1, 2 or
another CE accrediting body, depending on the target audience’s medical specialty or health care
profession.
FDA is making the FDA Blueprint, approved as part of the Opioid Analgesic REMS, available
on the REMS@FDA Website (www.fda.gov/REMS), where it will remain posted for use by CE
providers as they develop the CE materials and activities. A list of the REMS-compliant CE
activities supported by unrestricted educational grants from the opioid analgesic companies to
accredited CE providers will be posted at www.opioidanalgesicREMS.com as that information
becomes available.
Adverse outcomes of addiction, unintentional overdose, and death resulting from inappropriate
prescribing, abuse, and misuse of opioids have emerged as major public health problems. It is
critical that HCPs are knowledgeable about the risks associated with opioid analgesics as they
pertain to their patients as well as from a public health perspective. The data continue to show
problems associated with prescription opioid analgesics.
• In 2015, over 52,404 Americans died from drug poisonings, and of these, 24% or
• Based on the 2016 National Survey on Drug Use and Health (NSDUH), an estimated
11.5 million Americans aged 12 or older misused a prescription pain reliever in the past
year ― with hydrocodone, oxycodone, and codeine products being the most commonly
reported. 4
• The most common source of pain relievers in the 2016 NSDUH was “a friend or relative”
(53%). “A physician’s prescription” was the second most common source, reported by
approximately 35% of respondents. 5
The nation is facing competing public health problems: the need to adequately treat a large
number of Americans with acute and chronic pain and an epidemic of prescription opioid abuse.
1
Accreditation Council for Continuing Medical Education. 2016. Accreditation Requirements. Criteria for CME
Providers-Accreditation Criteria. Accessed July 2018.
2
Accreditation Council for Continuing Medical Education. 2016. Accreditation Requirements. Criteria for CME
Providers-Standards for Commercial Support. Accessed July 2018.
3
See https://www.cdc.gov/nchs/data/factsheets/factsheet_drug_poisoning.pdf. Accessed July 2018.
4
Substance Abuse and Mental Health Services Administration. (2017). Key substance use and mental health
indicators in the United States: Results from the 2016 National Survey on Drug Use and Health (HHS Publication
No. SMA 17-5044, NSDUH Series H-52). Rockville, MD: Center for Behavioral Health Statistics and Quality,
Substance Abuse and Mental Health Services Administration.
5
Ibid.
2
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
Described in the 2011 report by the National Academies of Science, Engineering, and Medicine
(NASEM), Relieving PAIN in America, A Blueprint for Transforming Prevention, Care,
Education, and Research, 6 100 million Americans suffer from common chronic pain conditions;
fewer than half of Americans undergoing surgery report adequate pain relief; and 60% of
Americans visiting the emergency department with acute painful conditions receive analgesics.
The increasing availability of prescription opioids since the 1990’s has been accompanied by an
epidemic of opioid addiction. The Substance Abuse and Mental Health Services
Administration’s National Survey of Drug Use and Health has shown that most people who use
prescription analgesics “nonmedically” obtain them from friends or family, who it is believed
obtained the drugs from a doctor’s prescription. 7
Some of the immediate consequences of untreated or undertreated pain include reduced quality
of life, impaired physical function, and high economic costs. Chronic pain is associated with
physical disability, fear, anger, depression, anxiety, and reduced ability to carry out the roles of
family member, friend, and employee. It is critically important that HCPs have all the
information they need to properly treat their patients and safely manage their pain. It is also
critical for HCPs to understand when opioid analgesics are the appropriate treatment and how to
implement best practices to ensure their patients’ safety. A 2017 report by NASEM, Pain
Management and the Opioid Epidemic: Balancing Societal and Individual Benefits and Risks of
Prescription Opioid Use, describes the challenges of providing adequate pain management and
calls for the establishment of “comprehensive pain education materials and curricula” for HCPs. 8
Having broad knowledge about how to manage patients with pain can create the opportunity for
HCPs to consider all options for pain management, including nonpharmacologic and non-opioid
pharmacologic options, and to reserve opioids for when non-opioid options are inadequate and
when the benefits of the opioids are expected to outweigh the risks. This information can also
aid HCPs in identifying and intervening when encountering obstacles that may reduce access to
nonpharmacological and non-opioid medication options. Fully informed HCPs can help
contribute to national efforts to address opioid addiction and reduce opioid misuse and abuse.
6
http://www.nationalacademies.org/hmd/Reports/2011/Relieving-Pain-in-America-A-Blueprint-for-Transforming
Prevention-Care-Education-Research.aspx. Accessed July 2018.
7
https://www.samhsa.gov/data/sites/default/files/NSDUH-DetTabs-2016/NSDUH-DetTabs-2016.pdf, Table 6.53A.
Accessed July 2018.
8
http://nationalacademies.org/hmd/Reports/2017/pain-management-and-the-opioid-epidemic.aspx. Accessed July
2018.
3
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
Following completion of educational activities under the Opioid Analgesic REMS, HCPs should
be knowledgeable about the following.
• How to integrate opioid analgesics into a pain treatment plan individualized to the needs
of the patient
• How to safely and effectively manage patients on opioid analgesics in the acute and
chronic pain settings, including initiating therapy, titrating, and discontinuing use of
opioid analgesics
• How to counsel patients and caregivers about the safe use of opioid analgesics, including
proper storage and disposal
• How to counsel patients and caregivers about the use of naloxone for opioid overdose
• When referral to a pain specialist is appropriate
• The fundamental elements of addiction medicine
• How to identify and manage patients with opioid use disorder
In addition, HCPs will gain an understanding of current information about safe opioid practices
and about current Federal 9 and State regulations, national guidelines, 10 and professional
organization 11 and medical specialty guidelines on treating pain and prescribing opioids. HCPs
will also become familiar with the use of naloxone and with the importance of its availability for
use by patients and caregivers both in the community and in the home.
9
For example, see https://www.deadiversion.usdoj.gov/21cfr/cfr/2106cfrt.htm and
https://www.deadiversion.usdoj.gov/21cfr/21usc/829.htm. Accessed July 2018.
10
For example, see Dowell D, Haegerich TM, Chou R. 2016. CDC Guideline for Prescribing Opioids for Chronic
Pain –United States, 2016. MMWR Recomm Rep 2016; 65 (No.RR-1): 1-49. Accessed July 2018.
11
For example, see Federation of State Medical Boards’ Guidelines for the Chronic Use of Opioid Analgesics.
Accessed July 2018.
4
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
The FDA Blueprint was developed with two, competing, U.S. public health concerns in mind,
(1) the large number of Americans with acute and chronic pain and (2) the epidemic of
prescription opioid abuse.
1. Providing health care providers (HCPs) with a thorough understanding of the risks
associated with opioids can give HCPs the opportunity to consider all pain management
options, including nonpharmacologic and pharmacologic options, prescribing opioids
only when non-opioid options are inadequate and when the benefits of using an opioid
are expected to outweigh the risks.
2. When HCPs have information about the risks of opioid misuse and abuse, they will be
better able to create opportunities for patient counseling and other strategies to reduce
these risks.
Pain can be categorized according to its duration, underlying pathophysiology of the original
insult, and whether a central sensitization component has developed. An understanding of these
different categorizations can help direct therapeutic decisions.
When defining, and classifying pain, the following should be taken into consideration:
HCPs should be knowledgeable about how to assess each patient when initiating a pain
management program. When appropriate, evidence-based, standardized scales and tools can be
used to document pain characteristics and guide management decisions throughout treatment,
noting the strengths and weaknesses regarding specificity and sensitivity of these scales.
1. Patient history
5
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
2. Screening tools to evaluate the known risk factors for development of chronic pain after
an acute injury or disease
3. Screening tools to evaluate the known risk factors for opioid use disorder (OUD) or abuse
7. Physical examination
1. The goals of treatment, including the degree of improvement in pain and function when
function has been impaired by pain
6
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
Pain can arise from a wide variety of causes. There are a number of nonpharmacologic and self-
management treatment options that have been found to be effective alone or as part of a
comprehensive pain management plan, particularly for musculoskeletal pain and chronic pain.
Examples include, but are not limited to, psychological, physical rehabilitative, and surgical
approaches, complementary therapies, 12 and use of approved/cleared medical devices for pain
management. HCPs should be knowledgeable about the range of treatment options available, the
types of pain that may be responsive to those options, and when they should be used as part of a
multidisciplinary approach to pain management. HCPs should also be aware that not all
nonpharmacologic options have the same strength of evidence to support their utility in the
management of pain, and some may be more applicable for some conditions than others.
A variety of analgesics, including non-opioid and opioid medications, are available for use to
manage pain symptoms. HCPs should be well informed about the range of analgesics available
and the types of pain that may be responsive to those analgesics.
A. Non-opioid medications
When using non-opioid medications in pain management, HCPs should be knowledgeable about
the following:
1. Mechanism of action of analgesic effect
2. Indications and uses for pain management
3. Routes of administration and formulations used in pain management
4. Initial dosing, dose titration, dose tapering (when appropriate) for analgesia
5. Contraindications
6. Adverse events, with emphasis on labeled warnings
7. Drug interactions ― both pharmacodynamic and pharmacokinetic
12
For example, see https://nccih.nih.gov. Accessed July 2018.
7
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
of addiction, abuse and misuse, which can lead to respiratory depression, overdose and death.
Therefore, it is the responsibility of HCPs to be knowledgeable, not just about the presence of
such risks, but about how to weigh these risks before prescribing an opioid and about how to
properly manage patients who are prescribed opioids, both for short-term and long-term use.
When using opioid analgesics as part of pain management, HCPs should be knowledgeable about
the following:
1. General precautions
a. Even at prescribed doses, opioid analgesics carry the risk of misuse, abuse, opioid use
disorder, overdose, and death
b. Importance of the appropriate use of PDMPs 13 and their use as a clinical decision
support tool
c. DSM-5 (R) criteria (or the most recent version) for OUD and the concepts of abuse
(taking an opioid to get high) vs. misuse (taking more than prescribed for pain or
giving to someone else in pain) 14
d. The concepts of tolerance and physiological dependence and how they differ from
OUD (addiction)
e. Recognition that some opioid analgesics (e.g., Transmucosal Immediate Release
Fentanyl products, some ER/LA products) are safe only for opioid-tolerant patients
5. Range of opioid analgesic products available for pain management and their related
safety concerns
a. Routes of administration including oral, transmucosal, transdermal
b. Release characteristics of immediate release (IR), extended-release (ER), long-acting
(LA)
c. Abuse-deterrent formulations (ADFs)
• Definition of ADF based on the FDA guidance for industry, Abuse-Deterrent
Opioids – Evaluation and Labeling 15
• Recognition that all ADFs have the same potential for addiction and overdose
death as non-abuse-deterrent opioids
• How to understand FDA-approved ADF product labeling
6. Initial dosing, dose titration, dose tapering (when appropriate) for analgesia
a. Concepts and limitations of the conversion charts in labeling and the limitations of
relative potency or equianalgesic dosing tables in literature
13
SAMHSA Prescription Drug Monitoring Programs: A Guide for Healthcare Providers. Accessed July 2018.
14
American Psychiatric Association DSM-5-Opioid Use Disorder Diagnostic Criteria. Accessed July 2018.
15
See FDA guidance for industry Abuse-Deterrent Opioids —Evaluation and Labeling. Accessed July 2018.
8
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
7. Contraindications
8. Adverse Events
a. Medication errors
b. Periods of greater risk for significant respiratory depression, including at treatment
initiation and with dose increases
c. Serious adverse drug reactions (including overdose and death)
d. Labeled warnings
e. Common adverse drug reactions
9. Drug interactions
a. Pharmacokinetic interactions based on metabolic pathway
b. Pharmacokinetic and pharmacodynamic interactions with alcohol
c. Concerns with particular drug–drug interactions, including, but not limited to:
• Benzodiazepines and other central nervous system depressants, including alcohol
• Monoamine oxidase inhibitors
• Antidiuretic hormone drugs
9
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
HCPs should be knowledgeable about the appropriate use of opioids in patients with acute and
chronic pain, including the importance of balancing potential benefits with the risks of serious
adverse outcomes such as overdose and death.
1. Patient selection ― consider when an opioid is an appropriate option and consult the
PDMP
3. Naloxone for home use ― prescribe and discuss the use of naloxone products and the
various means of administration
1. Patient selection
a. Differences in benefit and risk and expected outcomes for patients with chronic pain,
palliative care, or end-of-life care
b. Differences in initiating treatment in opioid nontolerant vs. opioid-tolerant patients
2. Dosing
a. As needed vs. around-the-clock
b. How to determine a safe initial dose
c. Safe conversion from other opioids
4. When and how to use an opioid or non-opioid analgesic to supplement pain management
10
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
D. Long-term management
1. Evaluation of the patient with worsening pain for changes in underlying condition and for
signs of OUD before increasing opioid dosage
3. Monitoring of patient adherence to the treatment plan, especially regarding misuse and
abuse:
• Perform medication reconciliation ― recognize, document, and address aberrant
drug-related behavior
• Determine if nonadherence is due to inadequate pain management
• Understand the utility and interpretation of urine drug testing (e.g., screening and
confirmatory tests) and use as indicated
• Screen and refer for substance use disorder treatment when concerns arise
HCPs should understand how to monitor patients taking opioid analgesics and identify the signs
and symptoms of opioid misuse, abuse, and OUD and be knowledgeable about how to begin the
process of intervention upon suspicion of an OUD.
HCPs should be knowledgeable about when referral to a pain management specialist is indicated,
including identifying patients at high risk for OUD and patients unable to achieve adequate pain
management.
HCPs should be knowledgeable about how to safely taper opioid analgesics, including how to
recognize and manage signs and symptoms of opioid withdrawal. HCPs should be
knowledgeable about the particular risks associated with tapering during pregnancy.
11
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
HCPs should recognize their role in reducing the risks associated with opioid analgesics through
patient education at initiation of an opioid and throughout long-term management.
1. Inform patients about pain management expectations and managing pain through
2. Use the Patient Counseling Guide: What You Need to Know About Opioid Pain
Medicines as part of discussion with patients and caregivers when prescribing opioid
analgesics.
HCPs should be knowledgeable about the basic elements of addiction medicine and be familiar
with the definition, neurobiology, and pharmacotherapy of OUDs. In particular, stigmatizing or
blaming language should be replaced with language that acknowledges that addiction,
12
FDA Education Blueprint for Health Care Providers Involved in the Treatment and Monitoring of Patients with Pain
September 2018
It should also be noted that there may be a different approach with a patient who misuses an
opioid analgesic by taking the product differently than prescribed for the purpose of managing
pain, in contrast to the patient who abuses an opioid analgesic with the intent of getting high.
HCPs should be familiar with the following:
2. Use of screening tools to identify patients at risk, based on known risk factors, and to
identify patients developing signs of opioid dependence or addiction as early as possible.
16
Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, (Copyright 2013). American Psychiatric
Association.
17
Id.
13
1. REMS Outreach and Communication
a. Status of grants
i. The status of the request for proposals for grants for REMS-compliant
accredited CE including:
ii. The status of the requests for proposals for any grants to CE Providers or
other CE organizations with expertise in assessing CE outcomes who agree
to conduct evaluations of health care providers who have taken REMS-
compliant accredited CE funded under this REMS.
ii. Include any external members (non-RPC) involved in the grant review,
including those from the broad-based CE community. Provide the job title,
licensure and professional degree of the individual for each grant review
cycle
ii. For the first assessment, the date the first program based upon the FDA
Opioid Analgesic REMS Education Blueprint for Health Care Providers
Involved in the Treatment and Monitoring of Patients with Pain (“FDA
Blueprint”), became available
iv. All reports submitted to the RPC by CE grantees during the assessment
period.
i. Summary of reports from any CE Provider that tracks participants that begin
an activity but do not complete it; only provide when insight on lack of
completion is available (e.g., participant didn’t complete because activity
too long, too difficult, etc.)
1 2
Stevenson R, Moore DE. Ascent to the Summit of the CME Pyramid. JAMA 2018;319(6):543-544
Cervero R, Gaines J. The Impact of CME on Physician Performance and Patient Health Outcomes: An Updated
Synthesis of Systematic Reviews J Contin Educ Health Prof 2015;35(2):131–138
2
Agency for Research Health and Quality. (2007). Effectiveness of Continuing Medical Education. Retrieved May
9, 2018, from https://archive.ahrq.gov/downloads/pub/evidence/pdf/cme/cme.pdf
3 Standard Continuing Education (CE) learner data to be captured by all CE Providers for Opioid Analgesic REMS
includes geographic location (state of primary practice), DEA prescriber status (individual registration or
institutional authorization), profession, practice area, and length of time in practice.
e. Independent Audit: The results of independent audits of the CE. Audits must be
conducted on a random sample of at least 10% of the REMS-compliant accredited
CE funded under the Opioid Analgesic REMS and must include/evaluate:
i. For the year prior to the assessment period through the assessment period,
provide an evaluation of the overall pain/opioid CE landscape including
but not limited to:
ii. Both overall and drug-specific outcome rates, as available, in each data
source
iii. Data on trends and patterns of illicit opioid (e.g., heroin) use and related
morbidity and mortality
i. Development and use of metrics that assess prescriber behaviors and patient
outcomes relating to key messages in FDA Blueprint. The assessment
should also include an evaluation of potential unintended adverse patient
outcomes resulting from changes in prescribing practices (e.g., withdrawal
symptoms or increased pain due to inappropriate rapid opioid tapering,
patient abandonment, seeking of illicit opioids, suicide
attempts/completion)
ii. Use of an appropriate control group (i.e., providers who have not completed
REMS-compliant accredited CE), and rigorous control for confounding, to
allow an assessment of whether any observed changes in prescriber
behaviors or patient outcomes can be attributed to the CE
ii. Propose a study or studies to address the evaluation of the key influences
on a sample of opioid prescribers. These studies may employ mixed-
methods approaches and other emerging research methodologies most
appropriate for answering the question.
4. Knowledge
5. During transition from the ER/LA Opioid Analgesics REMS to Opioid Analgesic REMS,
data to be included until the last enduring activity has been reported:
a. For each CE activity released under the ER/LA Opioid Analgesics REMS that
remains active, provide the name of the CE Provider, the title of the activity, and
the date the activity will expire
The requirements for assessments of an approved REMS under section 505-1(g)(3) include with
respect to each goal included in the strategy, an assessment of the extent to which the approved
strategy, including each element of the strategy, is meeting the goal or whether 1 or more such
goals or such elements should be modified.
5(063URJUDP&RPSDQLHV
2SLRLG$QDOJHVLF5(06
7ZHOYH0RQWK)'$$VVHVVPHQW5HSRUW),1$/
9
$SSHQGL[ (YDOXDWLRQRIWKH,PSDFWRI5(06&RPSOLDQW$FFUHGLWHG&(:KLWH3DSHU
3URSULHWDU\DQG&RQILGHQWLDO 3DJHRI
2SWLRQVIRU(YDOXDWLQJWKH,PSDFWRI5(06&RPSOLDQW&RQWLQXLQJ(GXFDWLRQ
RQ2SLRLG3UHVFULELQJ3UDFWLFHV3DWLHQW0DQDJHPHQWDQG3DWLHQW2XWFRPHV
3UHSDUHGIRUWKH2SLRLG$QDOJHVLF5(063URJUDP&RPSDQLHV
-XO\
$OH[DQGHU0:DONHU0''U3+
3ULQFLSDO
:RUOG+HDOWK,QIRUPDWLRQ6FLHQFH&RQVXOWDQWV
$OOLHG'ULYH6XLWH
'HGKDP0$
ZZZ:+,6&21FRP
$OHF:DONHU#:+,6&21FRP
,PSDFWRI5(06&RPSOLDQW&( -XO\
7$%/(2)&217(176
/,672)7$%/(6
/,672)),*85(6
6800$5<
%$&.*5281'
35,25:25.%<53&
3/$1
&RQFHSWXDO)UDPHZRUN
6WUXFWXUHIRU$QDO\VHV
$68,7(2)$1$/<6(672$66(667+(,03$&72)&(
2YHUYLHZ
5HTXLUHG'DWD
'HWHUPLQDQWVRI3UHVFULELQJ3UDFWLFH
)DFWRUV7KDW,QIOXHQFHWKH0DQDJHPHQWRI3DWLHQWV5HFHLYLQJ3UHVFULSWLRQ2SLRLGV
'HWHUPLQDQWVRIWKH8SWDNHRI&(
&RPELQLQJ3UHGLFWRUVRI&(ZLWK3UHGLFWRUVRI3UHVFULELQJDQGRI3DWLHQW0DQDJHPHQW
&21'8&7
5HVHDUFK9HQXHV
3URYLGHU,GHQWLILFDWLRQ
5HVWULFWLRQWR,QIRUPDWLYH3URYLGHUV
3URYLGHU(GXFDWLRQ7KDW,V1RW5(06&RPSOLDQW
:K\1RW'LUHFW$VVHVVPHQWRI&(3DUWLFLSDQWV"
',6&866,21
&21&/86,21
5()(5(1&(6
$SSHQGL[$&'&*XLGHOLQHV
$SSHQGL[%7KH,49,$5:'3UHVFULSWLRQ&ODLPV'DWDEDVH
$SSHQGL[&'RFWRUDQG3KDUPDF\6KRSSLQJ
$SSHQGL['&RPSRQHQWVRID86+HDOWK,QVXUDQFH&ODLPV'DWDEDVH
/,672)7$%/(6
7DEOH )RUPDWRIDJHQHULFDQDO\WLFUHVXOW
7DEOH $YDLODEOHSUHGLFWRUVRISURYLGHUSUHVFULSWLRQVHPHVWHUYROXPHDQGSURYLGHUSUDFWLFHV
LQDGLVSHQVLQJGDWDEDVH
7DEOH $GGLWLRQDOFKDUDFWHULVWLFVLQDQLQVXUDQFHRU(+5GDWDEDVHWKDWFDQVHUYHDVRXWFRPHV
LQDQHYDOXDWLRQRISDWLHQWPDQDJHPHQW
7DEOH $YDLODEOHSUHGLFWRUVDQGRXWFRPHPHDVXUHVIRUSURYLGHUXSWDNHRI&(LQDGLVSHQVLQJ
GDWDEDVH
7DEOH &RUUHVSRQGHQFHEHWZHHQFRQFOXVLRQVIURPWKH&RQFHSWXDO0RGHODQGWKHSURSRVHG
DQDO\VHV
,PSDFWRI5(06&RPSOLDQW&( -XO\
7DEOH$0HDVXUHVWRDVVHVV&'&*XLGHOLQHV
7DEOH&'HILQLWLRQVRIOHYHOVRIGRFWRUDQGSKDUPDF\VKRSSLQJRYHUPRQWKVRIIROORZXS
/,672)),*85(6
)LJXUH 3RVVLEOHFDXVDOSDWKZD\VIRUSUHVFULELQJSUDFWLFHSDWLHQWVHOHFWLRQDQGSDWLHQW
RXWFRPHVLQWKHDEVHQFHRI5(06FRPSOLDQW&(
)LJXUH 3RVVLEOHFDXVDOSDWKZD\VIRUWKHHYDOXDWLRQRI&(LQWHUYHQWLRQV
,PSDFWRI5(06&RPSOLDQW&( -XO\
6800$5<
7KHSXUSRVHRIWKLVSDSHULVWRSURSRVHPHWKRGVDQGYHQXHVIRUHYDOXDWLQJWKHHIIHFWLYHQHVVRI5(06
FRPSOLDQWFRQWLQXLQJHGXFDWLRQ&(DFRPSRQHQWRID5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\5(06WKDW
KDVEHHQDJUHHGXSRQE\WKH)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$DQGWKH2SLRLG$QDOJHVLF5(063URJUDP
&RPSDQLHV53&1HZ5(06FRPSOLDQW&(SURJUDPVEDVHGRQWKHUHYLVHG)'$%OXHSULQWKDYHEHHQ
HVWDEOLVKHGIROORZLQJDQ)'$GHFLVLRQWRH[SDQGWKH5(06SURJUDPWRLQFOXGHDOORSLRLGVSUHVFULEHGIRUWKH
WUHDWPHQWRISDLQDQGWRH[WHQG5(06FRPSOLDQW&(WRWKHEURDGHUKHDOWKFDUHWHDPVLQFOXGLQJQXUVHVDQG
SKDUPDFLVWV7KLVSURSRVDO¶VIRFXVLVRQPHDVXULQJWKHHIIHFWRI5(06FRPSOLDQW&(RQSUHVFULELQJDQGRQ
LQGLFHVRIJRRGPDQDJHPHQWRISDWLHQWVZKRUHFHLYHRSLRLGV7KHVWDWLVWLFDOPRGHOVZLWKLQZKLFK5(06
FRPSOLDQW&(LVWREHHYDOXDWHGLQFOXGHDQDFFRXQWLQJIRUORFDOVHFXODUWUHQGVLQRSLRLGSUHVFULELQJDQG
SDWLHQWPDQDJHPHQW
,QZRUNFRQGXFWHGZKHQH[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGVZHUHWKHIRFXVRIUHJXODWRU\FRQFHUQ
53&¶VHYDOXDWLRQRIDVLQJOHODUJHYHQGRU¶VSURIHVVLRQDOHGXFDWLRQSURJUDPGLGQRWVKRZDQLPSDFWRQWKH
YROXPHRISUHVFULELQJRURQWKHIUHTXHQF\RIGLVFRXUDJHGSDWLHQWPDQDJHPHQWDFWLYLWLHVVXFKDVWUHDWLQJ
RSLRLGQDwYHSDWLHQWVZLWKKLJKGRVHRSLRLGVRU(5/$RSLRLGV)XUWKHUILQGLQJVIURPWKHDQDO\VLVZHUHWKDW
SDUWLFLSDQWVLQHGXFDWLRQDOSURJUDPVFDPHRYHUZKHOPLQJO\IURPSULPDU\FDUHWKDWDPRQJSDUWLFLSDQWVLQWKH
SURJUDPVDQGFRPSDULVRQSUDFWLWLRQHUVPDQ\SUHVFULEHGRSLRLGVUDUHO\RUQRWDWDOO7KHFKRLFHWRSXUVXH&(
IRURSLRLGSUHVFULELQJPD\KDYHEHHQSRVLWLYHO\UHODWHGWRDSUDFWLWLRQHU¶VDSULRULOLNHOLKRRGRIXVLQJRSLRLGV
7KHIXWXUHDQDO\VHVSURSRVHGKHUHDUHGHULYHGIURPDFRQFHSWXDOIUDPHZRUNWKDWVHHVRSLRLGSUHVFULELQJDVD
IXQFWLRQRISDVWSUHVFULELQJKDELWVSUHVFULEHUDQGSDWLHQWFKDUDFWHULVWLFVDQGHQYLURQPHQWDOIDFWRUVDVZHOODV
SUHVFULEHUVSHFLILFIDFWRUVDQGVHFXODUWUHQGV$OOWKHGHWHUPLQDQWVDFWLQDGGLWLRQWRWKHSURIHVVLRQDO
HGXFDWLRQSURJUDP8QGHUWKHIUDPHZRUNWKHLPSDFWRIWKHSURJUDPPD\FKDQJHZLWKWLPHDIWHUFRPSOHWLRQ
RIWUDLQLQJDQGLWPD\RSHUDWHGLIIHUHQWO\LQGLIIHUHQWFDWHJRULHVRISUHVFULEHUV7KHSURSRVHGDQDO\VLVWDNHVDV
LWVSULQFLSDOHQGSRLQWVPHDVXUHVSURSRVHGLQ&'&JXLGHOLQHVIRUSRSXODWLRQOHYHODVVHVVPHQWRIVDIHRSLRLG
SUHVFULELQJDQGSDWLHQWPDQDJHPHQW$SSHQGL[$7KHDQDO\VLVHPSOR\VFRYDULDWHVWKDWERWKDUHVXJJHVWHG
E\WKHFRQFHSWXDOIUDPHZRUNDQGDUHDYDLODEOHLQWKHDVVXPHGVWXG\VHWWLQJV
7KHILUVWFXWRIUHVHDUFKLQWRWKHIDFWRUVWKDWGULYHRSLRLGSUHVFULELQJDQGSDWLHQWPDQDJHPHQWFDQEH
DFFRPSOLVKHGEHIRUH13,OLQNHGGDWDDUHDYDLODEOH$IWHUWKHUHLVDGHWDLOHGSLFWXUHRIWKHG\QDPLFVRIWKH
RXWFRPHVLQWKHSRSXODWLRQVWREHVWXGLHGGDWDGHVFULELQJSUHVFULEHUSDUWLFLSDQWVLQ5(06FRPSOLDQW&(FDQ
EHOD\HUHGRQWRSURYLGHIRUDZHOOFRQWUROOHGDVVHVVPHQWRIWKHSURJUDP¶VLPSDFW
,PSDFWRI5(06&RPSOLDQW&( -XO\
%$&.*5281'
(GXFDWLQJKHDOWKFDUHSURYLGHUVDERXWWKHXVHRIRSLRLGVKDVWKHFOLQLFDOJRDOVRIJLYLQJSDWLHQWVQHHGHGSDLQ
UHOLHIDQGHOLPLQDWLQJSUHVFULELQJWKDWUHVXOWVLQRSLRLGPLVXVHRUDEXVH0RVW86VWDWHPHGLFDOERDUGV
PDQGDWHSUHVFULEHUHGXFDWLRQIRUVDIHRSLRLGSUHVFULELQJEXWWKHVSHFLILFVYDU\IURPVWDWHWRVWDWH 7KH)'$
KDVSURYLGHGJXLGHOLQHVWKH³)'$%OXHSULQW´IRUWKHFRQWHQWRI5(06FRPSOLDQWDFFUHGLWHG&(IRU
SUHVFULEHUVDQGPHPEHUVRIWKHEURDGHUKHDOWKFDUHWHDP 7KHUDQJHRIWKH)'$¶VVSHFLILHGDUHDVIRU
HGXFDWLRQLVEURDGFRYHULQJFRQFHSWVLQSDLQPDQDJHPHQWDQGRSLRLGXVHGLVRUGHUSDWLHQWHYDOXDWLRQWKH
SODFHRIRSLRLGVLQPDQDJHPHQWSODQVIRUDFXWHDQGFKURQLFSDLQSDWLHQWFRXQVHOLQJDERXWVDIHXVHUHIHUUDORI
SDWLHQWVWRSDLQVSHFLDOLVWVDQGLGHQWLILFDWLRQDQGPDQDJHPHQWRIRSLRLGXVHGLVRUGHUV
53&JDLQHGH[SHULHQFHZLWKDVLQJOHHGXFDWLRQYHQGRU3UL0HGIRUDSURJUDPWKDWDGGUHVVHGXVHRI(5/$
RSLRLGVLQWKURXJK,Q53&DZDUGHGJUDQWVIRUQHZ5(06FRPSOLDQW&(SURJUDPV
IROORZLQJWKHUHYLVHG)'$%OXHSULQW,QFRQWUDVWWRWKHHDUOLHUHIIRUWVZKLFKZHUHIRFXVHGRQ(5/$RSLRLGV
WKHSURJUDPQRZHQFRPSDVVHVSUHVFULSWLRQSUDFWLFHIRUDOORSLRLGSURGXFWV
,QZKDWIROORZVZHZLOOXVHWKHWHUP³5(06FRPSOLDQW&(´WRGHVLJQDWHKHDOWKFDUHSURYLGHUDFFUHGLWHG
FRQWLQXLQJHGXFDWLRQSURJUDPVGHYHORSHGXQGHUWKHVSRQVRUVKLSRI53&DQGYHULILHGDVFRYHULQJWKHWRSLFVLQ
WKH)'$%OXHSULQW:HZLOOXVHWHUPVVXFKDV³SURIHVVLRQDOHGXFDWLRQ´WRUHIHUWRQRQVSRQVRUHGSURJUDPV
,QWHJUDOWRWKH5(06FRPSOLDQW&(SURJUDPVZLOOEHLPPHGLDWHDVVHVVPHQWRIWKHKHDOWKFDUHSURYLGHUV¶
XQGHUVWDQGLQJ/RQJHUWHUPHYDOXDWLRQVXSWRPRQWKVZHUHDOVRFDUULHGRXWXQGHUWKH(5/$5(06
SURJUDP 53&ZLOOSUHVHQWHOVHZKHUHWKHSODQVIRUERWKVKRUWDQGORQJWHUPHYDOXDWLRQVXQGHUWKHFXUUHQW
5(06SURJUDP
7KHSXUSRVHRIWKLVGLVFXVVLRQLVWRSURSRVHPHDVXUHVWHFKQLTXHVDQGYHQXHVWRHYDOXDWHWKHLPSDFWRI
5(06FRPSOLDQW&(SURJUDPVRQKHDOWKFDUHSURYLGHUV¶SUDFWLFHDQGRQSDWLHQWRXWFRPHV7KHPHDVXUHVUHO\
KHDYLO\RQWKHDVVHVVPHQWVWDQGDUGVVHWRXWLQWKH86&HQWHUVIRU'LVHDVH&RQWURO&'&JXLGHOLQHVIRU
VDIHSUHVFULELQJSUDFWLFHVIRURSLRLGV$SSHQGL[$ 7KHWHFKQLTXHVDUHPXOWLYDULDEOHSURFHGXUHVWKDWFDQ
DFFRPPRGDWHWLPHYDU\LQJDQGWLPHLQYDULDQWSUHGLFWRUVVHFXODUWUHQGVDQGUHSHDWHGPHDVXUHV7KHYHQXHV
DUHDOORQHVIRUZKLFKWKHUHLVVXEVWDQWLDOH[SHULHQFHLQWKHFRQGXFWRIREVHUYDWLRQDOVWXGLHVRIGUXJXWLOL]DWLRQ
DQGGUXJHIIHFWV
53&ZLOOSUHSDUHIXOOSURWRFROVIRUWKHDQDO\VLVRIWKHLPSDFWRI5(06FRPSOLDQW&(RQSUHVFULEHUVRI
RSLRLGV7KHSURWRFROVZLOOGHVFULEHWLPHOLQHVVWXG\YHQXHVGDWDWREHDVFHUWDLQHGK\SRWKHVHVDQGPHDVXUHV
DQDO\WLFWHFKQLTXHVDQGWKHUHODWLRQRIDFWLRQDEOHFRQFOXVLRQVWRWKHSRVVLEOHUHVXOWV
%HFDXVHWKH)'$¶VFULWLTXHRISULRU53&HIIRUWVZHQWWRIXQGDPHQWDOLVVXHVRIVWXG\FRQFHSWLRQ53&IHOWLW
DSSURSULDWHWRFRPPLVVLRQWKLVZKLWHSDSHUZKLFKZRXOGOD\RXWKRZ53&PLJKWIRUPXODWHVWXGLHVWKDWPHHW
WKH$JHQF\¶VLQWHQW:LWK5(06FRPSOLDQW&(SURJUDPVEDVHGRQWKH)'$%OXHSULQWVWDUWLQJMXVWQRZ
WKHUHLVWLPHWRFUHDWHDVWXG\WKDWZLOODVVHVV5(06FRPSOLDQW&(DVDNH\FRPSRQHQWRIWKHFXUUHQW5(06
SURJUDPWKDWFRYHUVDOORSLRLGV
,PSDFWRI5(06&RPSOLDQW&( -XO\
35,25:25.%<53&
53&FRQWUDFWHGZLWKWKHPHGLFDOLQIRUPDWLFVFRPSDQ\,49,$WRDVVHVVWKH3UL0HGSUHVFULEHUHGXFDWLRQ
SURJUDP¶VLPSDFWRQRSLRLGSUHVFULELQJLQWKURXJK7KHUHVXOWVZHUHSURYLGHGWRWKH)'$DV³53&
5HSRUW´ .H\SRUWLRQVRI53&5HSRUWDUHWREHVXPPDUL]HGLQDPDQXVFULSWIRUSXEOLFDWLRQ
53&5HSRUWXVHG,49,$¶V5HDO:RUOG'DWD5:'3UHVFULSWLRQ&ODLPVILOHIRUPHUO\
FDOOHGWKH³/RQJLWXGLQDO3UHVFULSWLRQ´±³/5[´±ILOH7KH3UHVFULSWLRQ&ODLPVILOHFDSWXUHV
DERXWRIGUXJGLVSHQVLQJVLQWKH866HH$SSHQGL[%$SDWLHQWSRSXODWLRQZDVGHILQHG
DVRQHZLWKHYLGHQFHRIFRQWLQXRXVUHSUHVHQWDWLRQLQWKHILOHIURP-XQHWKURXJK
'HFHPEHU7KHSUHVFULEHUVRIDOORSLRLGSURGXFWVGLVSHQVHGWRWKHSDWLHQWVLQWKH
SRSXODWLRQZHUHLGHQWLILHG7KHSUHVFULEHUILOHZDVOLQNHGWR3UL0HG¶VUHFRUGVRI&(
FRPSOHWLRQXVLQJWKH1DWLRQDO3UHVFULEHU,QGH[13,3UL0HGSURYLGHGWKHFRPSOHWLRQGDWH
IRUHDFKSUHVFULEHU
7KHXQLWRIDQDO\VLVLQ53&5HSRUWZDVWKHGLVSHQVLQJRIDQRSLRLG(DFKGLVSHQVLQJKDGDVVRFLDWHGGUXJ
FKDUDFWHULVWLFVVXFKDVVXEVWDQFHGRVHDQGIRUPXODWLRQGHULYHGGLUHFWO\IURPWKH1DWLRQDO'UXJ&RGH
1'&QXPEHURUFRQWH[WXDOFKDUDFWHULVWLFVVXFKDVGLVSHQVLQJDQ(5/$RSLRLGWRDQRSLRLGQDwYHSDWLHQW
7KHHYDOXDWLRQRIWKHLPSDFWRISUHVFULEHUHGXFDWLRQUHVWHGRQFODVVLI\LQJHDFKGLVSHQVLQJDVWRZKHWKHULWKDG
RFFXUUHGLQWKH\HDUIROORZLQJWKHSUHVFULEHU¶VFRPSOHWLRQRIWKH3UL0HGSURJUDP7KHUHZHUHWZRNLQGVRI
FRPSDULVRQV
3UHSRVW3RSXODWLRQOHYHOVXPPDU\PHDVXUHVRIRSLRLGGLVSHQVLQJFKDUDFWHULVWLFVLQWKH\HDUDIWHU
SUHVFULEHUHGXFDWLRQFRPSOHWLRQZHUHFRPSDUHGWRWKHVDPHPHDVXUHVLQWKHVDPHSUHVFULEHUVGXULQJ
WKH\HDUEHIRUHSUHVFULEHUHGXFDWLRQFRPSOHWLRQ
&RQWHPSRUDQHRXV3URYLGHUVZKRKDGQRWFRPSOHWHG3UL0HGSUHVFULEHUHGXFDWLRQZHUHFRPSDUHGWR
WKRVHZKRKDGGRQHVRZLWKPDWFKLQJRQDGDWHFRUUHVSRQGLQJWRSUHVFULEHUHGXFDWLRQFRPSOHWLRQDQG
IXUWKHUPDWFKLQJE\FDWHJRULHVRIDJHJHQGHUVSHFLDOW\UHJLRQQXPEHUVRIGLVSHQVLQJVRI(5/$DQG
LPPHGLDWHUHOHDVHRUVKRUWDFWLQJ,56$RSLRLGVDQGQXPEHURIRSLRLGWUHDWHGSDWLHQWVIRUHDFK
SUHVFULEHU7KHRXWFRPHPHDVXUHVZHUHDVVHVVHGRYHUWKH\HDUIROORZLQJSUHVFULEHUHGXFDWLRQ
FRPSOHWLRQDPRQJWKHFRPSOHWHUVDQGWKHPDWFKHGFRPSDULVRQJURXS
%RWKNLQGVRIFRPSDULVRQZHUHDSSOLHGWRSXUHO\GHVFULSWLYHPHDVXUHVLWHPEHORZGLUHFWDVVHVVPHQWVRI
FKDQJHLQSUDFWLFHLWHPDQGLQGLFHVRISUHVFULELQJSUDFWLFHVWKDWDUHGLVFRXUDJHGDVEHLQJXQVDIHLWHPV
DQG7KHPHDVXUHVZHUH
1XPEHURIGLVSHQVLQJVRI(5/$RU,56$RSLRLGVRUFHOHFR[LE
,QVWDQFHVRIVZLWFKLQJIURP(5/$RSLRLGVWR,56$RSLRLGVFHOHFR[LERUWUDPDGRO
'LVSHQVLQJVRI(5/$RSLRLGVLQGLFDWHGIRUXVHLQRSLRLGWROHUDQWSDWLHQWVRUGLVSHQVLQJVRIPRUHWKDQ
PRUSKLQHPLOOLJUDPHTXLYDOHQWVSHUGD\WRSDWLHQWVZLWKQRGLVSHQVLQJKLVWRU\WKDWZRXOGSUHGLFW
RSLRLGWROHUDQFH
'LVSHQVLQJVRI(5/$RSLRLGVFRQFRPLWDQWO\ZLWK&16GHSUHVVLYHDJHQWV
1HLWKHUWKHSUHSRVWQRUWKHFRQWHPSRUDQHRXVFRPSDULVRQVXSSRUWHGDVXSSRVLWLRQWKDWSUHVFULEHUHGXFDWLRQ
KDGDQLPSDFWRQSUHVFULELQJSUDFWLFH)RUHDFKRIWKHPHDVXUHVWKHUHZHUHQRPHDQLQJIXOGLIIHUHQFHVHLWKHU
EHWZHHQWKHSUHSRVWSRSXODWLRQVRIGLVSHQVLQJVRUEHWZHHQWKHSRSXODWLRQVRIGLVSHQVLQJVLQSHUVRQVZKR
KDGFRPSOHWHGSUHVFULEHUHGXFDWLRQYHUVXVWKRVHZKRKDGQRW
53&5HSRUWSUHVHQWHGRWKHUILQGLQJVUHOHYDQWWRLQWHUSUHWLQJLWVUHVXOWVRQWKHLPSDFWRISUHVFULEHU
HGXFDWLRQDQGZKLFKZLOOEHXVHIXOWRWKHSODQQLQJRIIXWXUHDVVHVVPHQWV
2QHWKLUGRIWKHSUHVFULEHUVZHUHDVVRFLDWHGZLWK]HURGLVSHQVLQJVRIRSLRLGVLQWKHRQH\HDUEDVHOLQH
SHULRGDQGDQRWKHURQHWKLUGZLWKXSWRGLVSHQVLQJVLQWKHRQH\HDUEDVHOLQHSHULRG/HVVWKDQRQH
WKLUGRIWKHSUHVFULEHUVKDGDVVRFLDWHGGLVSHQVLQJVDWOHDVWRQDZHHNO\EDVLVGXULQJWKHEDVHOLQH\HDU
,PSDFWRI5(06&RPSOLDQW&( -XO\
2YHURISUHVFULEHUVZHUHHQJDJHGLQSULPDU\FDUHLQFOXGLQJQXUVHSUDFWLWLRQHUVDQGSK\VLFLDQV¶
DVVLVWDQWVDQGIHZHUWKDQWKUHHSHUFHQWZHUHLQVSHFLDOWLHVLQZKLFKSDLQPDQDJHPHQWLVDFHQWUDO
DVSHFWRISUDFWLFH
'HVSLWHEDVHOLQHPDWFKLQJRQFDWHJRULHVRIRSLRLGSUHVFULSWLRQYROXPHWKHPDWFKHGDQDO\VLVLQGLFDWHG
ORZHURSLRLGSUHVFULSWLRQYROXPHDVVRFLDWHGZLWKWKHSURYLGHUVZKRKDGQRWXQGHUJRQH
SUHVFULEHUHGXFDWLRQWUDLQLQJWKDQDPRQJWKRVHZKRGLG
1LQHW\WKUHHSHUFHQWRIWKHGLVSHQVLQJVZHUHSDLGIRUE\FRPPHUFLDOLQVXUDQFH0HGLFDUHRU
0HGLFDLG
7KHILUVWRIWKHVHUHVXOWVVXJJHVWVWKDWWKHVWXGLHGSRSXODWLRQLQFOXGHGSUHVFULEHUVLQZKRPLWPLJKWEHIXWLOH
WRDWWHPSWDQDVVHVVPHQWRISUHVFULELQJSUDFWLFHDVDPHDVXUHRIWKHLPSDFWRISUHVFULEHUHGXFDWLRQ7KH
VHFRQGILQGLQJLVHQFRXUDJLQJLQWKDWLWFRQILUPVWKDWSULPDU\FDUHJLYHUVZKRSUHVXPDEO\DUHPRVWLQQHHGRI
LQIRUPDWLRQIRUPDODUJHSDUWRIWKHFRPSOHWLQJFRPPXQLW\IRUSUHVFULEHUHGXFDWLRQSURJUDPV7KHIDFWWKDW
SUHVFULEHUVZKRFRPSOHWHGSUHVFULEHUHGXFDWLRQKDGPRUHSUHVFULSWLRQYROXPHHYHQZLWKLQWKHFDWHJRULHVRI
PDWFKLQJSRLQWDERYHVXJJHVWVWKDWWKHGHFLVLRQWRXQGHUJRWKHWUDLQLQJPD\KDYHEHHQFRUUHODWHGZLWKD
KLJKHUH[SHFWDWLRQRIRSLRLGSUHVFULSWLRQLQSUDFWLFH7KHODVWILQGLQJWKDWDOPRVWDOOGLVSHQVLQJVZHUH
FRYHUHGE\LQVXUDQFHLPSOLHVWKDWUHVHDUFKYHQXHVWKDWGHSHQGRQGDWDIURPLQVXUDQFHFODLPVVKRXOGEH
XVHIXOGDWDVRXUFHVLQWKHIXWXUH
7KHDXWKRUVRI53&5HSRUWQRWHGWKDWWKHDQDO\VLVGLGQRWFRQWUROIRUVHFXODUWUHQGV³7KHVHIDFWRUVPD\
KDYHFRQIRXQGHGERWKWKHSUHSRVWDQGPDWFKHGDQDO\VHV3RWHQWLDOIDFWRUVLQFOXGHH[SDQGHGSUHVFULSWLRQ
FRYHUDJHXQGHUWKH$IIRUGDEOH&DUH$FWVWDWHVSHFLILFOHJLVODWLRQDQGSUHVFULSWLRQPRQLWRULQJSURJUDPV
FKDQJHVWRLQVXUDQFHDGMXVWPHQWSROLFLHVHJGRVDJHVWUHQJWKSULRUDXWKRUL]DWLRQVDQGFKDQJHVWRRSLRLG
DQDOJHVLFIRUPXODWLRQVWKDWUHVLVWWDPSHULQJ´53&5HSRUWS,QDGGLWLRQQHLWKHUWKHSUHSRVWQRUWKH
PDWFKHGDQDO\VLVDGMXVWHGIRUWKHFKDUDFWHULVWLFVRIWKHSDWLHQWVWRZKRPWKHRSLRLGVZHUHGLVSHQVHG
,QVXPPDU\53&5HSRUWSURYLGHGDYDULHW\RIPHDVXUHVWKDWZRXOGSODXVLEO\EHLQGLFDWLYHRIDEHQHILFLDO
HIIHFWRIDSUHVFULEHUHGXFDWLRQSURJUDP1RQHRIWKHVHPHDVXUHVVXSSRUWHGWKHK\SRWKHVLVWKDWSUHVFULEHU
HGXFDWLRQDIIHFWHGSUHVFULELQJSUDFWLFH7KHUHSRUWGLGQRWJRLQWRSRVVLEOHGLIIHUHQFHVLQSUHVFULEHUHGXFDWLRQ
LPSDFWDFURVVGLIIHUHQWJURXSVRISDWLHQWV
,PSDFWRI5(06&RPSOLDQW&( -XO\
3/$1
&RQFHSWXDO)UDPHZRr
$VQRWHGE\WKH)'$LQVXEVHu HQWFRPPHQWV53&5HSRUW GLGQRWWLHWRJHWKHUWKHPHDVXUHVWKDWLW
H[DPLQHGXQGHUDQDUWLFXODWHGPRGHORIKRZSUHVFULEHUHGXFDWLRQSURJUDPVPLJKWEHH[SHFWHGWRDIIHFW
SUHVFULEHUEHKDYLRU7KHUHSRUWWKHUHIRUHOHIWRSHQWKH ue VWLRQRIZKHWKHURWKHUPHWULFVRUWHFKQLTXHVRI
DQDO\VLVPLJKWEH PRUHLQIRUPDWLYH7RRUJDQL]HWKHFRQVLGHUDWLRQRIIXWXUHDQDO\VHVDQGLQUHVSRQVHWRWKH
$JHQF\¶VFRQFHUQWKDWWKRVHDQDO\VHVVKRXOGILWLQWRDQRYHUDUFKLQJSLFWXUHRIRSLRLGSUHVFULELQJZHSURSRVH
WKHFRQFHSWXDOIUDPHZRUNRXWOLQHGLQ)LJXUH
)LJXUHGHSLFWVWKHIORZRILQIOXHQFHVRQWKHSUHVFULELQJSUDFWLFHRIDVLQJOHSURYLGHU,Q)LJXUHWKHUHLVQR
5(06FRPSOLDQW&(7LPHIORZVIURPOHIWWRULJKWDQGLVGLYLGHGLQWRFKXQNVODEHOHGLLL, 2QWKH
IDUOHIWDUHFKDUDFWHULVWLFVRIWKHSURYLGHUWKDWYDU\VORZO\RUQRWDWDOOZLWKWLPHVXFKDVVSHFLDOW\DJHDQG
JHQGHU+HDYLHUDUURZVSRLQWLQJWRWKHULJKWGHSLFWWKHH[WHQGHGLQIOXHQFHRISURYLGHUFKDUDFWHULVWLFVRYHU
WLPH7KHWDQJOHRIDUURZVOHDGLQJIURPHDFKWLPHFKXQNWRWKHQH[WLVDGLDJUDPPDWLFSRUWUD\DORID
VWDWHPHQWWKDWDOODVSHFWVRIDQLQGLYLGXDO¶VPHGLFDOSUDFWLFHDUHSRWHQWLDOO\DIIHFWHGE\DOODVSHFWVRIDQ
LQGLYLGXDO¶VSUDFWLFHKLVWRU\(QYLURQPHQWDOIDFWRUVWKHER[DWWKHWRSRIWKHGLDJUDPFDQYDU\RYHUWLPHDQG
E\UHJLRQ$QDORJRXVO\WRWKHSURYLGHUFKDUDFWHULVWLFVDVLQJOHGRZQZDUGKHDY\DUURZDWHDFKWLPHSRLQW
LQGLFDWLQJLQIOXHQFHRQDOOWKHER[HVEHORZSRUWUD\VWKHLQIOXHQFHRIHQYLURQPHQWDOIDFWRUV
)LJXUH 3RVVLEOHFDXVDOSDWKZD\VIRUSUHVFULELQJSUDFWLFe SDWLHQWVHOHFWLRQDQGSDWLHQWRXWFRPHV
LQWKHDEVHQFHRI5(06FRPSOLDQW&(
3UHVFULELQJSUDFWLFHVSDWLHQWSURILOHVDQGSDWLHQWRXWFRPHVDUHDOOPHDVXUDEOHDWW LLL
&DOHQGDUWLPHGDWHUHJLRQDQGGDWHE\UHJLRQLQWHUDFWLRQVDUHSUR[LHVIRUHQYLURQPHQWDOIDFWRUV
3URYLGHUQRQWLPHYDU\LQJFKDUDFWHULVWLFVDUHNQRZQE\WKHSUR[LHVRIVSHFLDOW\DJHVH[
%R[HVZLWKVROLGRXWOLQHVUHIHUWRREVHUYDEOHV'RWWHGOLQHVHQFORVHIDFWRUVWKDWDUHQRWREVHUYHGGLUHFWO\
)LJXUHHODERUDWHVRQWKHSDWKZD\VRI)LJXUHE\DGGLQJDQHIIHFWRI5(06FRPSOLDQW&()RUUHDGDELOLW\
WKHWDQJOHVRI)LJXUHEHWZHHQWLPHFKXQNVKDYHEHHQUHGXFHGWRVLQJOHDUURZV7KHGHFLVLRQWRXQGHUWDNHD
5(06FRPSOLDQW&(SURJUDPPD\EHUHODWHGWRSURYLGHUDQGHQYLURQPHQWDOFKDUDFWHULVWLFVDVZHOODVWKH
SUHFHGLQJDVSHFWVRISUHVFULELQJSUDFWLFHVSDWLHQWVHOHFWLRQDQGSDWLHQWH[SHULHQFH
,PSDFWRI5(06&RPSOLDQW&( -XO\
)LJXUH 3RVVLEOHFDXVDOSDWKZD\VIRUWKHHYDOXDWLRQRI&(LQWHUYHQWLRQV
&RPSOHWLRQGDWH5(06FRPSOLDQW&(LVNQRZQIRUHDFKFDUHJLYHU7KLVGHWHUPLQHVW
3UHVFULELQJSUDFWLFHVSDWLHQWSURILOHVDQGSDWLHQWRXWFRPHVDUHDOOPHDVXUDEOHDWW
&DOHQGDUWLPHGDWHUHJLRQDQGGDWHE\UHJLRQLQWHUDFWLRQVDUHSUR[LHVIRUHQYLURQPHQWDOIDFWRUV
3URYLGHUQRQWLPHYDU\LQJFKDUDFWHULVWLFVDUHNQRZQE\WKHSUR[LHVRIVSHFLDOW\DJHVH[
%R[HVZLWKVROLGRXWOLQHVUHIHUWRREVHUYDEOHV'RWWHGOLQHVHQFORVHIDFWRUVWKDWDUHQRWREVHUYHGGLUHFWO\
1RWHWKDW)LJXUHGRHVQRWLQFOXGHWKHFRPSRQHQWVRIWKH&(LQWHUYHQWLRQLWVHOIHJPHVVDJHUHSHWLWLRQRI
WKHPHVVDJHLQWKHLQWHUYHQWLRQGXUDWLRQRIWKHPHVVDJHPHWKRGRIDGPLQLVWUDWLRQRURWKHUIDFWRUVDVVRFLDWHG
ZLWKLWQRUGRHV)LJXUHLQFOXGHWKHDVVHVVPHQWVRIFRPSUHKHQVLRQRUUHWHQWLRQRIWKHPHVVDJHV7KH
FRQFHSWXDOPRGHOIRUEHKDYLRUDVVHVVPHQWLQ)LJXUHDQG)LJXUHLVUHVWULFWHGWRSUHVFULELQJSUDFWLFHVDQG
RWKHUHOHPHQWVSURYLGHGE\ODUJHVFDOHKHDOWKLQVXUDQFHDQGSKDUPDF\FODLPVGDWDVXFKDVFKDUDFWHULVWLFVRI
SDWLHQWV
7KHIROORZLQJGHVLJQFRQVLGHUDWLRQVHPHUJHIURPWKHIUDPHZRUN
7KHIXOOHIIHFWRI&(PD\QRWEHLPPHGLDWH7KHXOWLPDWHSUDFWLFHVSURILOHVDQGRXWFRPHV
UHSUHVHQWHGE\W LQ)LJXUHPD\EHDIIHFWHGE\LPPHGLDWHSRVW&(FKDQJHVW LQWKHVHVDPH
YDULDEOHVERWKGLUHFWO\DQGWKURXJKWKHLUHIIHFWRQUHWHQWLRQRI&(OHDUQLQJV
&DOHQGDUWLPHUHJLRQDQGGDWHE\UHJLRQLQWHUDFWLRQVVWDQGLQDVSUR[\PHDVXUHVIRUWKH
HQYLURQPHQWDOIDFWRUVWKDWHYROYHRYHUWLPH
5(06FRPSOLDQW&(FDQDIIHFWSDWLHQWRXWFRPHVWKURXJKPHFKDQLVPVRWKHUWKDQSUHVFULELQJSDWWHUQV
3URYLGHUVFDQFKDQJHULVNIRUH[DPSOHWKURXJKSDWLHQWFRXQVHOLQJVHOHFWLRQDQGUHWHQWLRQRISDWLHQWV
LQWRWKHLUSUDFWLFHVRUUHIHUUDORIKLJKULVNSDWLHQWVIRUVSHFLDOL]HGSDLQPDQDJHPHQW
&DUHJLYHUV¶KLVWRULFDOSUHVFULELQJSUDFWLFHVDQGWKHFKDUDFWHULVWLFVRIWKHLUSDWLHQWVLQFOXGLQJWKHSULRU
SDWLHQWH[SHULHQFHDUHSRWHQWLDOFRQIRXQGLQJIDFWRUV
&DUHJLYHUV¶KLVWRULFDOSUHVFULELQJSUDFWLFHVDQGWKHFKDUDFWHULVWLFVRIWKHLUSDWLHQWVDUHSRWHQWLDO
VRXUFHVRIKHWHURJHQHLW\LQWKHDSSDUHQWHIIHFWRI&()RUH[DPSOHSURYLGHUVZKRSUHVFULEHRSLRLGV
GDLO\PD\KDYHSUHYLRXVO\DFTXLUHGGHWDLOHGNQRZOHGJHWKDWHQFRPSDVVHVWKHPDWHULDOLQWKH)'$
%OXHSULQW&RQYHUVHO\SURYLGHUVZKRGRQRWW\SLFDOO\VHHSDWLHQWVZLWKVHULRXVSDLQDQGZKRKDYHQRW
KLVWRULFDOO\SUHVFULEHGRSLRLGVDUHXQOLNHO\WRKDYHPHDVXUDEOHFKDQJHVLQSUHVFULELQJSUDFWLFH
7KHFRQVLGHUDWLRQVDERYHOHDGWRVSHFLILFDQDO\WLFFRQVWUDLQWV
$QDO\VLVVKRXOGDOORZWLPHYDU\LQJHIIHFWVRI5(06FRPSOLDQW&(VXFKDVDFRQVROLGDWLRQSHULRG
EHIRUHWKHRQVHWRIWKHHIIHFWDQGDGHFD\RYHUWLPH
,PSDFWRI5(06&RPSOLDQW&( -XO\
([WHUQDOLQIRUPDWLRQPD\EHUHTXLUHGWRLQWHUSUHWFDOHQGDUWLPHDQGUHJLRQDVSUR[LHVIRU
HQYLURQPHQWDOIDFWRUV1DWLRQDOO\FKDQJHVLQRSLRLGDEXVHFRLQFLGHGZLWKWKHLQWURGXFWLRQRIWKH
(5/$2SLRLG5(06SURJUDP ([DPSOHVRIORFDOIDFWRUVWKDWPD\DIIHFWVHFXODUWUHQGVGLIIHUHQWO\
E\UHJLRQLQFOXGHWKHHIIHFWLYHQHVVRIVWDWH3UHVFULSWLRQ'UXJ0RQLWRULQJ3URJUDPV3'03VDQGWKH
H[WHQWRIORFDOSHQHWUDWLRQRIVWDWHPDQGDWHGWUDLQLQJSURJUDPV
,QDGGLWLRQWRSUHVFULELQJSUDFWLFHVRXWFRPHVWREHH[DPLQHGVKRXOGLQFOXGHPHDVXUHVRISDWLHQW
FKDUDFWHULVWLFVDQGSDWLHQWH[SHULHQFH
7KHPRGHOSUHGLFWLQJWKHOHYHORIDQ\PHDVXUHVKRXOGLQFRUSRUDWHDVSUHGLFWRUVWKHVDPHPHDVXUHVDV
REVHUYHGHDUOLHUSUHVFULEHUFKDUDFWHULVWLFVFDOHQGDUWLPHDQGUHJLRQ
7KHUHVKRXOGEHV\VWHPDWLFH[SORUDWLRQRIVWDWLVWLFDOLQWHUDFWLRQVEHWZHHQLPSRUWDQWSUHGLFWRUV
$IXUWKHUFRQVWUDLQWDULVHVLQWKHWUDQVODWLRQRIWKHFRQFHSWXDOPRGHOIRULQGLYLGXDOVWRDSRSXODWLRQPRGHOIRU
DQDO\VLV
,I&(LVYHU\ZLGHVSUHDGDOOSURJUDPVQHHGWREHDFFRXQWHGIRU2WKHUZLVH&(LWVHOIPD\PDVTXHUDGH
DVDWLPHYDU\LQJHQYLURQPHQWDOIDFWRU
,QWKHVHFWLRQVWKDWIROORZZHZLOOSURSRVHWKDWDQDO\VLVEHFRQGXFWHGZLWKWKHXQLWRIREVHUYDWLRQEHLQJWKH
SUHVFULEHUVHPHVWHUDVL[PRQWKREVHUYDWLRQSHULRGRIWKHDFWLYLW\RIDVLQJOHSUHVFULEHU
3UHVFULEHUVHPHVWHUVHQGLQJHDFK-XQHDQG'HFHPEHUDFFUXHZKLOHWKHUHLVHOLJLELOLW\DQGGDWD
2XWFRPHVDQGSUHGLFWLYHIDFWRUVDUHPHDVXUHGZLWKLQHDFKSUHVFULEHUVHPHVWHU
6WUXFWXUHIRU$QDO\VHV
)LJXUHDQG)LJXUHSRUWUD\HGWKHWHPSRUDOIORZRILQIOXHQFHEHWZHHQPHDVXUDEOHVWDWHVIRUDVLQJOH
SUHVFULEHU(DFKILJXUHFDQDOVREHLQWHUSUHWHGDVDGLDJUDPRISUHGLFWLYHLQIOXHQFHVLQJURXSVRISUHVFULEHUV
REVHUYHGUHSHDWHGO\DQGLQWKHFDVHRI)LJXUHDOLJQHGVRWKDWW IRUHDFKSHUVRQLVWKHGDWHRIFRPSOHWLRQ
RI5(06FRPSOLDQW&()RUWKHDQDO\VLVWKDWZLOOIROORZHDFKDUURZLQ)LJXUHDQG)LJXUHFRUUHVSRQGVWR
DSRVVLEOHFRHIILFLHQWRIDSUHGLFWLYHHTXDWLRQLQZKLFKWKHYDULRXVIDFWRUVPD\UHSUHVHQWSUHGLFWRUVRXWFRPHV
RUERWK)RUYDULDEOHW\SHVWKDWFDQEHERWKSUHGLFWRUVDQGRXWFRPHVWKHYDULDEOHDVSUHGLFWRUDOZD\V
SUHFHGHVLQWLPHWKHYDULDEOHDVRXWFRPHVRWKHUHLVQRFLUFXODULW\
(DFKER[LQ)LJXUHDQG)LJXUHUHSUHVHQWVHLWKHUDFRQWLQXRXVYDULDEOHVXFKDVWRWDOPRUSKLQHPLOOLJUDP
HTXLYDOHQWV00(VGLVSHQVHGLQDSURYLGHUVHPHVWHURUDELQRPLDOYDULDWHVXFKDVSHUFHQWRIQHZRSLRLG
SUHVFULSWLRQVWKDWDUHIRU,56$RSLRLGV,QHDFKFDVHWKHPXOWLYDULDEOHUHJUHVVLRQLVDUHSHDWHGPHDVXUHV
DQDO\VLVZLWKSUHVFULEHUVHPHVWHUVDVWKHXQLWRIREVHUYDWLRQDQGSUHVFULEHUDVWKHLQGLFDWRUZLWKLQZKLFK
UHSHWLWLRQRFFXUV
7DEOHSUHVHQWVWKHIRUPDWRIDJHQHULFUHVXOW,QWKH'LVFXVVLRQ6HFWLRQZHZLOOWLHWKHUHVXOWVRIVXFK
DQDO\VHVWRWKHDQDO\WLFUHTXLUHPHQWVGHVFULEHGDERYH$VZLOOEHSRLQWHGRXWLQWKHQH[WVHFWLRQVDSODXVLEOH
UHVHDUFKVWUDWHJ\FRXOGEHWRLQYHVWLJDWHDOOWKHGHWHUPLQDQWVRIFRQIRUPDQFHWRUHFRPPHQGHGRSLRLG
SUHVFULELQJDQGSDWLHQWPDQDJHPHQWSUDFWLFHVEHIRUHDQ\FRQVLGHUDWLRQRIWKHLPSDFWRI5(06FRPSOLDQW
&(7KHQH[WVWHSWKHQZRXOGEHWRORRNDWWKHGHWHUPLQDQWVRI5(06FRPSOLDQW&(FRPSOHWLRQ&RQWUROOLQJ
IRUWKHSUHGLFWRUVRI5(06FRPSOLDQW&(WKHILQDOVWHSLVWRFUHDWHFRPELQHGPRGHOVWKDWH[DPLQHWKHDGGHG
LPSDFWRI5(06FRPSOLDQW&(SURJUDPV7KHURZVFRUUHVSRQGLQJWRWKHLPSDFWRI5(06FRPSOLDQW&(
DSSHDULQJUD\LQ7DEOHWRHPSKDVL]HWKDWWKHLQWURGXFWLRQRI5(06FRPSOLDQW&(LQWRDQ\VWDWLVWLFDO
PRGHOVKRXOGFRPHDIWHUGHWDLOHGLQYHVWLJDWLRQRIRWKHUSUHGLFWRUV
7KHULJKWPRVWWKUHHFROXPQVRI7DEOHFRUUHVSRQGWRDQH[WUDFWIURPWKHRXWSXWRIDJHQHUDOL]HGHVWLPDWH
HTXDWLRQV*((PRGHOVXFKDVZRXOGEHDYDLODEOHIURP352&*(102'LQ6$67KHXQLWRIREVHUYDWLRQ
LVWKHSURYLGHUVHPHVWHU7KHYDOXHVRIRXWFRPHSUHGLFWRUVOHIWKDQGFROXPQRI7DEOHDQGSURYLGHU,'DUH
NQRZQ$OOSURYLGHUVHPHVWHUVDUHLQFOXGHGLUUHVSHFWLYHRIZKHWKHUWKHSURYLGHUHYHUFRPSOHWHV5(06
,PSDFWRI5(06&RPSOLDQW&( -XO\
FRPSOLDQW&(7KH³UHSHDWHG´YDULDEOHIRUWKH*((LVSURYLGHU,'DQGWKHPRGHOVWDWHPHQWLQFOXGHVDOOWKH
SUHGLFWRUV
7DEOH )RUPDWRIDJHQHULFDQDO\WLFUHVXOW
1RRI 2XWFRPH 0XWXDOO\$GMXVWHG(VWLPDWHV
SURYLGHU $YHUDJH 3RLQW /RZHU 8SSHU
&KDUDFWHULVWLF /HYHO VHPHVWHUV YDOXH (VWLPDWH %RXQG %RXQG
7RWDO $OO 1WRWDO
1 $9 )95/
&DOHQGDU\HDU 1 $9 'HOWD9
HWF 1\HDU $9 'HOWD9
$$ 1$$ $9
5HJLRQHJ6WDWH %% 1%% $9
HWF 1UHJLRQ $9
5HJ
1WRWDO
3ULRURXWFRPHYDOXHVFRQWLQXRXVE\ &RHII
ODJWLPHLQVHPHVWHUV 5HJ
1WRWDO
&RHII
1[ $9 )95/
/HYHOVRISUHGLFWRU; 1[ $9 'HOWD9
HWF 1[ HWF $9 'HOWD9
1\ $9 )95/
/HYHOVRISUHGLFWRU< 1\ $9 'HOWD9
HWF 1 \ HWF $9 'HOWD9
(WF
1HYHU 1WRWDO $9 )95/
6DPH 1WRWDO $9 'HOWD9
7LPHVLQFH&(FRPSOHWLRQLQFDOHQGDU
1WRWDO $9 'HOWD9
VHPHVWHUV
1WRWDO $9 'HOWD9
HWF 1WRWDO $9 'HOWD9
3URYLGHUVHPHVWHU±$FRPSOHWHGVL[PRQWKSHULRGRIREVHUYDWLRQRIDSURYLGHU(DFKSURYLGHUVHPHVWHULVDVVRFLDWHGZLWKD
YDOXHIRUWKHRXWFRPHDQGDYDOXHIRUHDFKSUHGLFWRU
&(±5(06&RPSOLDQW$FFUHGLWHG&RQWLQXLQJ(GXFDWLRQ
)LWWHGDQGDGMXVWHGYDOXHVIURPDUHJUHVVLRQSURFHGXUHUHSHDWHGPHDVXUHVZLWKLQSUHVFULEHUDXWRFRUUHODWLYHZRUNLQJPDWUL[
$WWKHVSHFLILHGOHYHORIWKHVSHFLILHGFKDUDFWHULVWLF
1±1XPEHURISURYLGHUFDOHQGDUVHPHVWHUVJLYLQJLQIRUPDWLRQIRUWKHFRUUHVSRQGLQJURZRIWKHWDEOH
$9±2EVHUYHGDYHUDJHYDOXHRIWKHRXWFRPHIRUWKHFRUUHVSRQGLQJURZ
)95/±)LWWHGYDOXHRIWKHRXWFRPHDWWKHUHIHUHQFHOHYHOIRUFDWHJRULFDOSUHGLFWRUVLH/HYHOLQWKHWDEOH
'HOWD9±)LWWHGUHJUHVVLRQFRHIILFLHQWIRUHDFKOHYHORIHDFKFDWHJRULFDOSUHGLFWRUYVWKHFRUUHVSRQGLQJUHIHUHQFHOHYHO
5HJ&RHII±)LWWHGUHJUHVVLRQFRHIILFLHQWIRUFRQWLQXRXVSUHGLFWRUV
/RZHU%RXQG8SSHU%RXQG±/RZHUDQGXSSHUFRQILGHQFHERXQGVWRWKHDGMXVWHGSRLQWHVWLPDWH
%HFDXVHWKHUHLVQRUHVWULFWLRQRQHOLJLELOLW\RWKHUWKDQWKHDYDLODELOLW\RILQIRUPDWLRQWKHWHPSRUDODQG
UHJLRQDOHIIHFWVDVZHOODVWKHHIIHFWVRISRVVLEO\WLPHYDU\LQJSUHGLFWRUVDQGWKHDXWRFRUUHODWLYHLPSDFWRI
SDVWRXWFRPHYDOXHVDUHDOOHVWLPDWHGXVLQJDOOH[SHULHQFHRIDOOSURYLGHUV,QDQ\YHQXHWKDWZLOOEH
FRQVLGHUHGIRUWKLVZRUN³DOOSURYLGHUVZKRSUHVFULEHRSLRLGV´LVDODUJHQXPEHUDQGWKHHIIHFWHVWLPDWHVZLOO
KDYHJRRGVWDWLVWLFDOSUHFLVLRQ
7KHDQDO\VLVODLGRXWLQ7DEOHGRHVQRWDFFRXQWIRUIXOILOOPHQWRIVWDWHPDQGDWHG&(SURJUDPVZKRVH
FRPSOHWLRQUHFRUGVPLJKWQRWEHDYDLODEOHIRUDQDO\VLV6WDWHPHGLFDOERDUGUHTXLUHPHQWVUDQJHIURPWZR
KRXUVRIFRXUVHZRUNHYHU\WZR\HDUVPDQ\VWDWHVWRKRXUVHYHU\WZR\HDUV&DOLIRUQLDRQO\7KH
,PSDFWRI5(06&RPSOLDQW&( -XO\
UHTXLUHPHQWVGRQRWPDQGDWHWKDWFRXUVHVIROORZWKH)'$%OXHSULQWEXWPDQ\SURJUDPVPD\GRVR,QWKH
VFKHPDRI)LJXUHWKHHIIHFWRIQRQ5(06DVVRFLDWHGSURJUDPVZRXOGKDYHWREHFRQVLGHUHGDQ
(QYLURQPHQWDO)DFWRUFDSWXUHGRQO\LQWKHGDWHDQGUHJLRQYDULDEOHV,IVXFKSURJUDPVKDYHDQLPSRUWDQW
LQGLYLGXDOLPSDFWRQSUHVFULELQJSUDFWLFHVLWZRXOGEHQHFHVVDU\WROLPLWWKHSURYLGHUVHPHVWHUVWRWKRVH
EHORQJLQJWRDSURYLGHUZKRKDVDWVRPHSRLQWFRPSOHWHGD5(06FRPSOLDQW&(RQWKHDVVXPSWLRQWKDWWKH
SURYLGHUZLOOQRWDOVRSXUVXHRWKHUSURJUDPV,QWKLVFRQWH[WLWLVVWLOOSRVVLEOHPRGHOWUHQGVRYHUFDOHQGDU
WLPHDVDSUHGLFWRURISUHVFULSWLRQSUDFWLFHEXWRQO\ZLWKDGGHGDVVXPSWLRQV6HH6HFWLRQ3URYLGHU
(GXFDWLRQ7KDW,V1RW5(06&RPSOLDQW
,PSDFWRI5(06&RPSOLDQW&( -XO\
$68,7(2)$1$/<6(672$66(667+(,03$&72)&(
2YHUYLHZ
7KHVHTXHQFHRIDQDO\VHVWKDWZHSURSRVHHQFRPSDVVHVHYDOXDWLRQRIWKHGHWHUPLQDQWVRIHDFKRIWKH
RXWFRPHVLQWKHDEVHQFHRI5(06FRPSOLDQW&(ILQGLQJWKHSUHGLFWRUVRI5(06FRPSOLDQW&(DQGWKHQ
V\QWKHVL]LQJWKHUHVXOWVLQWRDFRPELQHGSUHGLFWLYHHTXDWLRQ
7KHILUVWVWHSVDUHWRLQYHVWLJDWH
'HWHUPLQDQWVRISUHVFULELQJSUDFWLFH
)DFWRUVWKDWLQIOXHQFHWKHPDQDJHPHQWRISDWLHQWVUHFHLYLQJSUHVFULSWLRQRSLRLGVDQG
'HWHUPLQDQWVRIWKHXSWDNHRI5(06FRPSOLDQW&(
7KHODVWVWHSLVWRV\QWKHVL]HWKHLQIRUPDWLRQGHULYHGIURPWKHILUVWWKUHH
,QFRUSRUDWHSUHGLFWRUVRI5(06FRPSOLDQW&(ZLWKSUHGLFWRUVRISUHVFULELQJDQGSDWLHQWPDQDJHPHQW
LQWRDFRYDULDWHFRQWUROOHGDVVHVVPHQWRIWKHLPSDFWLQZKLFKYDULDEOHVUHSUHVHQWLQJ5(06FRPSOLDQW
&(DUHSUHVHQWDORQJZLWKDUDQJHRISRWHQWLDOO\FRQIRXQGLQJIDFWRUVRUPRGLILHUVRIWKHSURJUDP
HIIHFW
5HTXLUHG'DWD
)RUWKHHYDOXDWLRQRIWKHLPSDFWRI5(06FRPSOLDQW&(RQRSLRLGSUHVFULELQJDQGSDWLHQWPDQDJHPHQWJRLQJ
IRUZDUGWKHVHWWLQJDVVXPHGKHUHLQFOXGHVDYDLODELOLW\RIWKHIROORZLQJLQIRUPDWLRQ
)URPSURYLGHUVRI5(06FRPSOLDQW&(WKHUHLVDOLVWRIWKH1DWLRQDO3URYLGHU,QGH[13,QXPEHUV
RISUHVFULEHUVZKRKDYHFRPSOHWHG&(WRJHWKHUZLWKWKHGDWHRIFRPSOHWLRQRI&(IRUHDFK
$GDWDUHVRXUFHWKDWFDQEHOLQNHGWRWKH13,WKDW
D ,QFOXGHVLQIRUPDWLRQDWWKHOHYHORI1DWLRQDO'UXJ&RGH1'&IRUDOORUDOPRVWDOO
GLVSHQVLQJVDVVRFLDWHGZLWKDSURYLGHUDQGWKDWPD\
E ,QFOXGHLQIRUPDWLRQRQSDWLHQWGHPRJUDSKLFVDQGDOORUQHDUO\DOOSDWLHQWGLDJQRVHVPHGLFDO
FDUHHQFRXQWHUVDQGSURFHGXUHVDQGGUXJGLVSHQVLQJV
'DWDVRXUFHVWKDWODFNLQIRUPDWLRQRQ&(FRPSOHWLRQFULWHULRQDERYHPD\VWLOOEHXVHIXOIRUH[DPLQLQJ
GHWHUPLQDQWVRIRSLRLGSUHVFULELQJDQGSDWLHQWPDQDJHPHQW'DWDVRXUFHWKDWPHHWFULWHULRQDEXWQRWEZLOO
EHVXIILFLHQWWRDVVHVVGHWHUPLQDQWRISUHVFULELQJSUDFWLFHDQGRIWKHXSWDNHRI&(EXWQRWIDFWRUVWKDW
LQIOXHQFHPDQDJHPHQW
$QDELOLW\WROLQNWKHLGHQWLW\RISURYLGHUVLWHPWRFRUUHVSRQGLQJLQIRUPDWLRQLQWKHGDWDUHVRXUFHLWHP
LVFUXFLDO6HH6HFWLRQ
'HWHUPLQDQWVRI3UHVFULELQJ3UDFWLFH
:HSURSRVHWKDWVWXGLHVEHFRQGXFWHGDPRQJSURYLGHUVIRUVXFKWLPHDVWKH\DUHDVVRFLDWHGZLWKDPLQLPXP
HYDOXDEOHQXPEHURIRSLRLGGLVSHQVLQJVLQWKHSUHFHGLQJWZRVHPHVWHUV)RUVSHFLILFLW\ZHPLJKWFRQVLGHU
VHWWLQJWKHHQWU\UHTXLUHPHQWIRUDQDO\VLVDWVL[GLVSHQVHGRSLRLGSUHVFULSWLRQVLQHDFKRIWKHSUHFHGLQJWZR
VHPHVWHUV$SURYLGHUZRXOGFRPHLQWRDQDO\VLVDVRIWKHILUVWVHPHVWHUIRUZKLFKDWOHDVWVL[GLVSHQVHG
SUHVFULSWLRQVIRURSLRLGVKDYHRFFXUUHGLQHDFKRIWKHWZRSUHFHGLQJVHPHVWHUV6HHDOVR6HFWLRQ
,PSDFWRI5(06&RPSOLDQW&( -XO\
7KHULJKWKDQGFROXPQRI7DEOHGHVFULEHVPHDVXUHVH[WUDFWHGIURPWKH&'&¶VJXLGHOLQHVWKDWFDQDOVREH
LPSOHPHQWHGLQDGLVSHQVLQJRQO\GDWDEDVH
$VLQ7DEOHSRVVLEOH&(VSHFLILFHOHPHQWVDUHSUHVHQWHGLQJUD\LQ7DEOH
7DEOH $YDLODEOHSUHGLFWRUVRISURYLGHUSUHVFULSWLRQVHPHVWHUYROXPHDQGSURYLGHUSUDFWLFHVLQ
DGLVSHQVLQJGDWDEDVH
2XWFRPHPHDVXUHVLGHQWLILHGZLWKLQWKHSURYLGHU
3UHGLFWRUVLGHQWLILHGZLWKLQWKHSURYLGHUVHPHVWHU VHPHVWHU
3URYLGHUFKDUDFWHULVWLFV 9ROXPHDQG00(RI
$JH $OORSLRLGGLVSHQVLQJV
6H[ ,56$RSLRLGGLVSHQVLQJ
6SHFLDOW\ (5/$RSLRLGGLVSHQVLQJV
3URYLGHUSUHVFULELQJKLVWRU\IRUHDFKRIWKHWZRS 3HUFHQWDJHRISDWLHQWVDPRQJWKRVHZLWKDQHZRSLRLG
UHFHGLQJVHPHVWHUV SUHVFULSWLRQZKRVHGLVSHQVLQJLVIRU«
7\SH,56$6FKHGXOH,,RU,,,(5/$ ,56$RSLRLG
7RWDO00(GLVSHQVHG GD\V¶VXSSO\
1RQRSLRLGDQDOJHVLFVE\FODVV $PRQJSDWLHQWVRQORQJWHUPRSLRLGWKHUDS\SHUFHQWDJH
ZKRUHFHLYHGLVSHQVLQJVIRU
(QYLURQPHQWDOIDFWRUV !00(GD\
5HJLRQ !00(GD\
&DOHQGDU\HDU %HQ]RGLD]HSLQHV
5HJLRQE\FDOHQGDU\HDU &DVKSD\PHQWD
&KDUDFWHULVWLFVRI&(
7LPHVLQFHFRPSOHWLRQ
&(YHQGRU
&(DFFUHGLWRU
3URYLGHUVHPHVWHU±$FRPSOHWHGVL[PRQWKSHULRGRIREVHUYDWLRQRIDSURYLGHU(DFKSURYLGHUVHPHVWHULV
DVVRFLDWHGZLWKDYDOXHIRUWKHRXWFRPHDQGDYDOXHIRUHDFKSUHGLFWRU
5RZVUHODWLQJWR&(KDYHEHHQJUD\HGRXWWRLQGLFDWHWKDWWKLVIDFWRUVZRXOGEHDGGHGRQO\DIWHUHYDOXDWLQJDOORWKHU
SUHGLFWRUVDQGDIWHULGHQWLI\LQJWKHIDFWRUVWKDWSUHGLFWXSWDNHRI&(
D3DWLHQWSD\PHQWIRUWKHHQWLUHW\RIDGLVSHQVLQJ³&DVKSD\PHQW´LVDYDLODEOHLQRQHGLVSHQVLQJGDWDEDVH,49,$
3UHVFULSWLRQ&ODLPVEXWLVQRWDYDLODEOHLQLQVXUDQFHEDVHGGLVSHQVLQJGDWDEDVHV
&(±5(06FRPSOLDQWFRQWLQXLQJHGXFDWLRQ
00(±0RUSKLQHPLOOLJUDPHTXLYDOHQWV
,56$±,PPHGLDWHUHOHDVHRUVKRUWDFWLQJ
(5/$±([WHQGHGUHOHDVHRUORQJDFWLQJ
7RXVHWKHSUHGLFWRUVLQ7DEOHWRDFKLHYHDQRXWSXWWKDWFRXOGSRSXODWHWDEOHVLQWKHIRUPDWRI7DEOHWKH
LQYHVWLJDWRUZRXOGVWDUWZLWKDSKDUPDF\FODLPVGDWDEDVHOLPLWLQJDQDO\VHVWRSURYLGHUVIRUVXFKSURYLGHU
VHPHVWHUVWKDWWKHGDWDEDVHFRQWDLQHGWKHSURYLGHU¶VSUHVFULSWLRQDFWLYLW\DQGWKDWZHUHIXUWKHUPRUH
FKDUDFWHUL]HGE\DWOHDVWVL[RSLRLGGLVSHQVLQJVLQHDFKRIWKHWZRSUHFHGLQJSURYLGHUVHPHVWHUV)URPWKH
ORQJLWXGLQDOSURYLGHUFODLPVKLVWRULHVRQHZRXOGFRQVWUXFWERWKWKHRXWFRPHDQGSUHGLFWRUYDULDEOHVRI7DEOH
IRUHDFKSURYLGHUVHPHVWHU7KHPRGHOZRXOGEHDVGHVFULEHGXQGHU6WUXFWXUHIRU$QDO\VHV(DFKRIWKH
RXWFRPHPHDVXUHVLQWKHULJKWKDQGFROXPQRI7DEOHZRXOGEHWDNHQLQVHTXHQFHDVWKHSUHGLFWHGYDULDEOH
ZLWKDGLVWULEXWLRQVSHFLILHGWREHHLWKHU³QRUPDO´IRUWKHFRQWLQXRXVPHDVXUHVRU³ELQRPLDO´IRUWKH
SURSRUWLRQV7KHPRGHOVWDWHPHQWZRXOGLQFOXGHWKHSUHGLFWRUVLQWKHOHIWKDQGFROXPQ3URYLGHU,'LVWKH
YDULDEOHXVHGWRJDWKHUUHSHDWHGPHDVXUHV
,PSDFWRI5(06&RPSOLDQW&( -XO\
7KHQH[WVXEVHFWLRQGHDOLQJZLWKSDWLHQWPDQDJHPHQWDQGRXWFRPHVLVVHWZLWKLQWKHFRQWH[WRIODUJH
GDWDEDVHVRIPHGLFDOLQVXUDQFHFODLPVRUHOHFWURQLFKHDOWKUHFRUGV(+5V)RUFRPSDFWQHVVZHKDYHQRW
UHSHDWHGWKHGLVFXVVLRQRIWKHIDFWRUVLQ7DEOH
)DFWRUV7KDW,QIOXHQFHWKH0DQDJHPHQWRI3DWLHQWV5HFHLYLQJ3UHVFULSWLRQ2SLRLGV
0DQ\RIWKH&'&*XLGHOLQHVUHTXLUHLQIRUPDWLRQRQSDWLHQWVDQGSDWLHQWPDQDJHPHQW3DWLHQWFKDUDFWHULVWLFV
DQGSDWLHQWPDQDJHPHQWFKDUDFWHULVWLFVWKDWFDQEHGHULYHGIURPLQVXUDQFHFODLPVRU(+5VUHOHYDQWWR
LPSOHPHQWLQJ&'&PHDVXUHVWRHYDOXDWHWKHJXLGHOLQHVDUHOLVWHGLQ7DEOH
8QGHUWKHKHDGLQJ³2WKHU0HDVXUHV´7DEOHDOVRLGHQWLILHVFDQGLGDWHRXWFRPHPHDVXUHVIRUDSSURSULDWH
SUHVFULELQJSUDFWLFHV7KHVHDUHGHULYHGIURPSXEOLFDWLRQVGHVFULELQJZRUNFRQGXFWHGIRU23&3056WXGLHV
DQG305\LHOGHGDVWUDLJKWIRUZDUGGHILQLWLRQRIRSLRLGRYHUGRVHLQLQVXUDQFHFODLPV
GDWDDVWKHH[LVWHQFHRIDQ\VHUYLFHFDUU\LQJDFRUUHVSRQGLQJ,&'FRGH 305GHULYHGDQHPSLULFDO
GHILQLWLRQRIGRFWRUDQGSKDUPDF\VKRSSLQJ 7KHPHDVXUHLVGHILQHGLQ$SSHQGL[&6KRSSLQJEHKDYLRU
LQUHODWLRQWRRSLRLGVLVSUHGLFWLYHRIRSLRLGRYHUGRVHDQGGHDWK
7DEOH $GGLWLRQDOFKDUDFWHULVWLFVLQDQLQVXUDQFHRU(+5GDWDEDVHWKDWFDQVHUYHDVRXWFRPHVLQ
DQHYDOXDWLRQRISDWLHQWPDQDJHPHQW
2XWFRPHPHDVXUHVLGHQWLILHGZLWKLQHDFKSURYLGHUVHPHVWHUSHUFHQWRIWUHDWHG
D
3UHGLFWRUV SDWLHQWVKDYLQJHDFKRIWKHFKDUDFWHULVWLFV
$VLQ7DEOH 'HULYHGIURP&'&*XLGHOLQHV
0DQDJHPHQWLQUHODWLRQWRILUVWGLVSHQVLQJ3HUFHQWRISDWLHQWVZLWK
8ULQHWHVWSHUIRUPHGEHIRUH
)ROORZXSYLVLWZLWKLQIRXUZHHNV
0DQDJHPHQWLQUHODWLRQWRORQJWHUPGLVSHQVLQJ3HUFHQWRISDWLHQWVZLWK
)ROORZXSYLVLWHDFKTXDUWHU\HVQR
3DLQDQGIXQFWLRQDODVVHVVPHQWV(+5RQO\
3HUFHQWRISDWLHQWVIRUZKRPWKHUHLVGRFXPHQWDWLRQWKDW3'03ZDVFKHFNHG(+5RQO\
2WKHU0HDVXUHV
2FFXUUHQFHRIRSLRLGRYHUGRVH
3URSRUWLRQRIGLVSHQVLQJVJRLQJWRSDWLHQWVZLWKEHKDYLRUVFRQVLVWHQWZLWKSUHVXPSWLYH
RSLRLGXVHGLVRUGHU
&KDUDFWHULVWLFVRISDWLHQWVSURSRUWLRQVZLWKE
'HPRJUDSKLFV
&RPRUELGLWLHV
3ULRURSLRLGH[SHULHQFH
'RFWRUSKDUPDF\VKRSSLQJ
D
3URYLGHUFKDUDFWHULVWLFVDQGSUHVFULELQJKLVWRU\ZRXOGEHUHHYDOXDWHGDWWKHEHJLQQLQJRIHDFKFDOHQGDU
VHPHVWHUIRUZKLFKWKHSUHVFULEHULVHQUROOHGWKURXJKRXWWKHVHPHVWHU
E
3DWLHQWFKDUDFWHULVWLFVDUHDQRXWFRPHYDULDEOHLQWKLVFRQWH[WEHFDXVHWKHFRPSRVLWLRQRIWKHSURYLGHU¶V
SDQHORISDWLHQWVLVIOXLGDQGUHIOHFWVWKHSURYLGHU¶VFKRLFHVDERXWZKRPWRWUHDW
:KHUHDVWKHDQDO\VHVSURSRVHGIRU7DEOHZHUHRIWKHVL[PRQWKSHUFHQWDJHVDPRQJGLVSHQVLQJVIURP
SURYLGHUVZLWKYDULRXVFKDUDFWHULVWLFVWKHDQDO\VHVUHTXLUHGIRU7DEOHZRXOGEHRIWKHSHUFHQWDJHVRI
SDWLHQWVZKRKDGUHFHLYHGDGLVSHQVLQJIURPDSURYLGHUDQGZKRH[KLELWHGWKHYDULRXVRXWFRPHFKDUDFWHULVWLFV
OLVWHG7KHDQDO\VHVZRXOGH[WHQGRYHUDOODYDLODEOHSURYLGHUVHPHVWHUVRIREVHUYDWLRQ
,PSDFWRI5(06&RPSOLDQW&( -XO\
'HWHUPLQDQWVRIWKH8SWDNHRI&(
7KHSURSRVHGVHTXHQFHRIDQDO\VLVUHTXLUHVILUVWIXOOFKDUDFWHUL]DWLRQRIWKHSUHGLFWRUVRIRSLRLGSUHVFULELQJ
DQGSDWLHQWPDQDJHPHQWLQWKHDYDLODEOHGDWD7KHQH[WVWHSLVWRGHVFULEHWKHIDFWRUVWKDWOHDGDSUHVFULEHUWR
SXUVXHD5(06FRPSOLDQW&(SURJUDP
3UHGLFWLYHFKDUDFWHULVWLFVIRUWKHXSWDNHRID5(06FRPSOLDQW&(WKDWFRXOGUHDGLO\EHLGHQWLILHGLQD
GLVSHQVLQJGDWDEDVHDUHOLVWHGLQWKHOHIWKDQGFROXPQRI7DEOH7KHLQIRUPDWLRQLQ7DEOHZRXOGEH
REWDLQHGIRUDOOSURYLGHUVHPHVWHUVLQWKHDYDLODEOHGDWDRPLWWLQJRQO\WKRVHIRUZKLFKWKHUHZDVDSULRU
FRPSOHWLRQRI5(06FRPSOLDQW&(7KHHYDOXDWLYHVWHSIRUGHVFULELQJXSWDNHZRXOGEHWRTXDQWLI\WKH
IUDFWLRQRISK\VLFLDQVFRPSOHWLQJ5(06FRPSOLDQW&(SHUSURYLGHUVHPHVWHUDVIXQFWLRQRIHDFKWKH
SUHGLFWRUFKDUDFWHULVWLFVLQ7DEOH
7DEOH $YDLODEOHSUHGLFWRUVDQGRXWFRPHPHDVXUHVIRUSURYLGHUXSWDNHRI&(LQDGLVSHQVLQJ
GDWDEDVH
3UHGLFWRUVD 2XWFRPH0HDVXUHV
,VWKHUHFRPSOHWLRQRI&(LQWKLV
3URYLGHUFKDUDFWHULVWLFV SURYLGHUVHPHVWHU"
$JH
6H[
6SHFLDOW\
3URYLGHUSUHVFULELQJKLVWRU\IRUHDFKRIWKHWZRSUHFHGLQJ
VHPHVWHUV
1XPEHURIRSLRLGSUHVFULSWLRQVGLVSHQVHG
1XPEHUE\7\SHRIRSLRLGSUHVFULSWLRQVGLVSHQVHG,56$
6FKHGXOH,,,56$6FKHGXOH,,,(5/$
7RWDO00(GLVSHQVHG
1XPEHURI1RQRSLRLGDQDOJHVLFVE\FODVV
(QYLURQPHQWDOIDFWRUVDIIHFWLQJERWKSURYLGHUDQGSDWLHQW
5HJLRQ
&DOHQGDU\HDU
1XPEHURISDWLHQWVZLWKRYHUGRVHLQHDFKRIWKHSUHFHGLQJ
WZRVHPHVWHUV
1XPEHURISDWLHQWVZLWKDSURYLGHUDVVLJQHGFRGHRIRSLRLG
XVHGLVRUGHULQHDFKRIWKHSUHFHGLQJWZRVHPHVWHUV
D
3URYLGHUFKDUDFWHULVWLFVDQGSUHVFULELQJKLVWRU\ZRXOGEHUHHYDOXDWHGDWWKHEHJLQQLQJRIHDFKFDOHQGDU
VHPHVWHUIRUZKLFKWKHSUHVFULEHULVHQUROOHGDWERWKWKHEHJLQQLQJDQGHQGRIWKHVHPHVWHU
&(±5(06FRPSOLDQWFRQWLQXLQJHGXFDWLRQ
00(±0RUSKLQHPLOOLJUDPHTXLYDOHQWV
,56$±,PPHGLDWHUHOHDVHRUVKRUWDFWLQJ
(5/$±([WHQGHGUHOHDVHRUORQJDFWLQJ
3UHOLPLQDU\WDEXODWLRQVPLJKWUHYHDOSUHVFULEHUSRSXODWLRQVLQZKLFKWKHIUDFWLRQSXUVXLQJ&(LVFORVHWR]HUR
DQGZKLFKFDQWKHUHIRUHEHRPLWWHGIURPVXEVHTXHQWPRGHOLQJH[HUFLVHV8OWLPDWHO\DGHVFULSWLYHPRGHO
ZRXOGEHGHULYHGE\ORJLVWLFUHJUHVVLRQRYHUWKHFDOHQGDUVHPHVWHUVRIDYDLODEOHGDWD7KHSUHGLFWHGYDULDEOH
IRUHDFKSURYLGHUVHPHVWHULVZKHWKHU&(RFFXUUHGGXULQJWKHVHPHVWHU
,ISUHVFULEHUJURXSVZLWKORZXSWDNHRI&(DUHLQFOXGHGWKHPRGHOLQJPLJKWLQFOXGH]HURLQIODWLRQHVWLPDWHV
ZKLFKSURYLGHDVHSDUDWHDFFRXQWLQJRIJURXSVLQZKLFKWKHRXWFRPHHYHQWGRHVQRWRFFXUDQGZKLFKLQVR
GRLQJLPSURYHYDULDQFHHVWLPDWHVIRURWKHUSUHGLFWRUV
,PSDFWRI5(06&RPSOLDQW&( -XO\
&RPELQLQJ3UHGLFWRUVRI&(ZLWK3UHGLFWRUVRI3UHVFULELQJDQGRI3DWLHQW0DQDJHPHQW
:LWKLQIRUPDWLRQRQWKHJOREDOGHWHUPLQDQWVRIWDUJHWHGSUDFWLFHVIRUSUHVFULELQJDQGIRUSDWLHQWPDQDJHPHQW
7DEOHDQG7DEOHDQGRQWKHGHWHUPLQDQWVRI5(06FRPSOLDQW&(7DEOHWKHHVWLPDWHVRILPSDFWRI
5(06FRPSOLDQW&(FDQEHGHULYHGE\DGGLQJ&(FKDUDFWHULVWLFVWRWKHJOREDOUHJUHVVLRQV7KHSRSXODWLRQRI
SURYLGHUVHPHVWHUVVWXGLHGZRXOGLQFRUSRUDWHDOODYDLODEOHGDWD,IWKHDQDO\VLVZHUHOLPLWHGWR&(DQGWKH
FRYDULDWHVLQ7DEOHSUHVFULSWLRQFODLPVGDWDDIXOOSUHVFULSWLRQFODLPVGDWDEDVHFRXOGEHXVHG$QDQDO\VLV
WKDWLQFOXGHGSDWLHQWDQGPDQDJHPHQWFKDUDFWHULVWLFVDVERWKSUHGLFWRUVDQGRXWFRPHV7DEOHDVGUDZQ
IURPDQLQVXUDQFHFODLPVGDWDEDVHRUDQ(+5ZRXOGQHFHVVDULO\EHUHVWULFWHGWRSURYLGHUVHPHVWHUV
FKDUDFWHUL]HGE\DYDLODEOHGDWD
&RYDULDWHVWKDWPXVWEHLQFOXGHGWRREWDLQXQFRQIRXQGHGHVWLPDWHVDUHDQ\WKDWDUHVKDUHGEHWZHHQWKHWZR
VHWVRIUHJUHVVLRQV7RPDLQWDLQLQIRUPDWLRQRQWKHQRQ&(SUHGLFWRUVRIRXWFRPHVWKHDQDO\VWPD\ZLVKWR
UHWDLQVRPHRUDOORIWKHPHYHQLIWKH\DUHQRWUHTXLUHGIRUFRQIRXQGHUFRQWURO,WZLOOEHDGYLVDEOHWRH[SORUH
LQWHUDFWLRQVEHWZHHQ&(DQGRWKHUSUHGLFWRUVWRLGHQWLI\VXEVHWVRIWKHSUHVFULEHUSRSXODWLRQLQZKLFK&(KDV
GLIIHULQJLPSDFWV
7KHHIIHFWRQRSLRLGSUHVFULELQJRI5(06FRPSOLDQW&(DWGLIIHUHQWLQWHUYDOVVLQFHFRPSOHWLRQFDQEH
HVWLPDWHGZLWKUHVSHFWWRQR5(06FRPSOLDQW&(7KHHVWLPDWHGHIIHFWLVGUDZQLQSDUWIURPEHWZHHQ
SURYLGHUFRPSDULVRQVZKHQWKHSURYLGHUVGLIIHULQWKHLUFRPSOHWLRQOHYHOVRUWLPHVVLQFHFRPSOHWLRQ7KH
HIIHFWRI5(06FRPSOLDQW&(LVDOVRGUDZQIURPZLWKLQSURYLGHUFRPSDULVRQVFRPSDULQJSURYLGHU
VHPHVWHUVEHIRUHDQGDIWHUFRPSOHWLRQV,QHYHU\FDVHHVWLPDWHGHIIHFWVDUHDGMXVWHGIRUWKHOHYHOVRIRWKHU
SUHGLFWRUVRISUHVFULELQJZKRVHHIIHFWVDUHGUDZQIURPWKHFRQWUDVWEHWZHHQSURYLGHUVHPHVWHUVDWGLIIHUHQW
OHYHOVRIWKHFRYDULDWHV
'HSHQGLQJRQWKHSUHVXPHGLQIOXHQFHRIQRQ5(06FRPSOLDQW&(LQWKHSRSXODWLRQLWPD\EHQHFHVVDU\WR
UHVWULFWDQDO\VLVWRSURYLGHUVHPHVWHUVWKDWSUHFHGHRUIROORZFRPSOHWLRQRI5(06FRPSOLDQW&(6HH
6HFWLRQ
,PSDFWRI5(06&RPSOLDQW&( -XO\
&21'8&7
5HVHDUFK9HQXHV
7KHWZRFRPSRQHQWVIRUDQ\HYDOXDWLRQRIWKHLPSDFWRI5(06FRPSOLDQW&(PXVWEHDVXEVWDQWLDO
QXPEHURISDUWLFLSDQWVZKRVHLGHQWLWLHVFDQEHOLQNHGWRDV\VWHPIRUPHDVXULQJSUHVFULELQJSUDFWLFHDQGD
GHVFULSWLRQRIWKHSDWLHQWVZKRDUHEHLQJFDUHGIRU7KHILUVWRIWKHVHLVDQDQWLFLSDWHGSURGXFWRIWKH
URXQGRI53&¶VYHQGRUFRQWUDFWLQJ
7KHVHFRQGFRPSRQHQWUHTXLUHVDGPLQLVWUDWLYHGDWDWKDWFRYHUWKHPHGLFDOHQYLURQPHQWLQZKLFKWKH
SUHVFULEHUVZRUN7KH,49,$5:'3UHVFULSWLRQ&ODLPVGDWD$SSHQGL[%SURYLGHVWKHRSSRUWXQLW\WR
H[DPLQHSUHVFULSWLRQSUDFWLFHIRUQHDUO\DOO86SUHVFULEHUV0DQ\ODUJHLQVXUDQFHGDWDUHVRXUFHVWKDWDUHXVHG
IRUGUXJVUHVHDUFKVXFKDVWKH)'$6HQWLQHOLQLWLDWLYHDQGLWVFRQWULEXWRUV
2QDVPDOOHUEXWVWLOOQDWLRQDOVFDOHWKHUHDUHFXUUHQWO\PDQ\RSWLRQVIRUVWXG\LQJRSLRLGGLVSHQVLQJLQ
HQYLURQPHQWVIRUZKLFKH[WHQVLYHSDWLHQWLQIRUPDWLRQLVGHULYDEOHIURPLQVXUDQFHFODLPV,QIRUPDWLRQFDQ
DOVREHGHULYHGIURPVHWWLQJVLQZKLFKSDWLHQWFDUHIDOOVXQGHUDXQLILHG(+586KHDOWKLQVXUHUVNHHS
WUDQVDFWLRQDOLQIRUPDWLRQLQWKHEURDGFDWHJRULHVVHWRXWLQ$SSHQGL['7KH)'$¶V6HQWLQHO,QLWLDWLYHLV
FXUUHQWO\DFFUXLQJGDWDRQVRPHPLOOLRQ$PHULFDQV 2WKHUODUJHUHVRXUFHVDUH2SWXP8QLWHG+HDOWKFDUH
PLOOLRQ+HDOWK&RUH$QWKHPPLOOLRQDQGWKH&HQWHUVIRU0HGLFDLGDQG0HGLFDUH6HUYLFHV&06
0HGLFDLG$QDO\WLF([WUDFW0$;GDWDEDVHZLWKYDOLGDWHGOLQNDJHVEHWZHHQIHHIRUVHUYLFHDQG
FRPSUHKHQVLYHPDQDJHGFDUHIRU0HGLFDLGUHFLSLHQWVLQVWDWHV ,49,$¶V3KDU0HWULFV3OXVGDWDEDVH
LQFOXGHVGDWDRQPLOOLRQSHUVRQVSDVWDQGSUHVHQWLQDYDULHW\RIFRPPHUFLDOLQVXUDQFHSODQV,%0
0DUNHWVFDQLVDOVRDFRPSLODWLRQRIGDWDIURPYDULRXVLQVXUHUVZLWKGDWDRQPLOOLRQSHUVRQVSDVWDQG
SUHVHQW)RUHDFKRIWKHVHODVWWZRFXUUHQWHQUROOHHVFRPSULVHRQO\DIUDFWLRQRIWKHWRWDOVRWKDWWKHLU
HIIHFWLYHVL]HIRUIXWXUHGDWDDFFUXDOZRXOGKDYHWREHJDXJHGDGKRF
,PSRUWDQWUHJLRQDOGDWDVRXUFHVZLWKFRPSOHWH(+5GDWDDQGGHHSUHVHDUFKH[SHULHQFHLQFOXGHWKH
.DLVHU3HUPDQHQWHSURJUDPVLQ&DOLIRUQLD2UHJRQ:DVKLQJWRQWKH*HLVLQJHU&OLQLF3HQQV\OYDQLD
+DUYDUG3LOJULP+HDOWKFDUH0DVVDFKXVHWWVDQG+DFNHQVDFN0HULGLDQ+HDOWK1HZ-HUVH\
3URYLGHU,GHQWLILFDWLRQ
$OOWKHZRUNSURSRVHGKHUHGHSHQGVFUXFLDOO\RQKDYLQJWKH13,VRIHVVHQWLDOO\DOOKHDOWKFDUHSURYLGHUVZKR
KDYHFRPSOHWHGWKH53&IXQGHG5(06FRPSOLDQWDFFUHGLWHG&(SURJUDPV8QGHUVXLWDEOHFRQILGHQWLDOLW\
SURWHFWLRQVWKH13,VQHHGWREHOLQNHGWRRQHRUPRUHRIWKHGDWDUHVRXUFHVGHVFULEHGLQ6HFWLRQ
:LWKLQDVLQJOHKHDOWKFDUHV\VWHPVXFKDVRQHRIWKH.DLVHU3HUPDQHQWHSURJUDPVLWPD\EHSRVVLEOHIRUWKH
V\VWHPDGPLQLVWUDWRUVWROLQNSURYLGHU,'VLQWKH(+5GLUHFWO\WRGRFXPHQWDWLRQRIFRPSOHWLRQRI5(06
FRPSOLDQW&(
6KDULQJ13,QXPEHUVSURYHGIHDVLEOHLQZRUNZLWK3UL0HGIRU53&5HSRUW+RZHYHU53&¶VH[SHULHQFH
KDVEHHQWKDWRWKHUSURYLGHUVRI&(SURJUDPVKDYHEHHQUHOXFWDQWWRVKDUHZLWKLQGXVWU\WKH13,QXPEHUVRI
SUHVFULEHUVZKRFRPSOHWHWKHLUSURJUDPV,QDOHWWHUWR53&GDWHG)HEUXDU\WKH&RQMRLQW&RPPLWWHH
RQ&RQWLQXLQJ(GXFDWLRQLQGLFDWHGWKDW³$NH\UHDOLW\LPEXHGLQDWWUDFWLQJKHDOWKSURIHVVLRQDOVWR&(IXQGHG
WKURXJKSRROHG53&IXQGVLVWKHDVVXUDQFHWKDWWKHOHDUQHUVZLOOQRWEHLGHQWLILHGRXWRIIHDURIEHFRPLQJWKH
WDUJHWVRIPDUNHWLQJE\WKHRSLRLGPDQXIDFWXUHUV´
2QHRIWKHGDWDYHQGRUVGHVFULEHGLQ6HFWLRQKDVGHYHORSHGDV\VWHPIRUSUHVHUYLQJSDWLHQWDQRQ\PLW\WKDW
FRXOGEHDGDSWHGWRSUHVHUYLQJSUHVFULEHUDQRQ\PLW\DVZHOOZKLOHVWLOODOORZLQJIXOOOLQNDJHRIGLYHUVHGDWD
VWUHDPV 6HH$SSHQGL[%7KHWHFKQLTXHLVWRSHUIRUPDQLUUHYHUVLEOHHQFU\SWLRQRILGHQWLILHUVLQWKHGDWD
WREHOLQNHG13,QXPEHUVIURP&(YHQGRUVDQGWRSHUIRUPWKHVDPHHQFU\SWLRQRIWKHFRUUHVSRQGLQJ
LGHQWLILHUVLQWKHGDWDEDVHWKDWSURYLGHVFRYDULDWHVDQGRXWFRPHV7KHHQFU\SWHGLGHQWLILHUV³WRNHQV´VHUYH
IRUOLQNDJH
,PSDFWRI5(06&RPSOLDQW&( -XO\
6LQFHWKHVKDULQJRIXQHQFU\SWHG13,QXPEHUVIRUSUHVFULEHUVLVFRQVLVWHQWZLWKH[LVWLQJSDWLHQWSULYDF\
OHJLVODWLRQLQWKH86DILUVWVWHSWROLQNDJHPLJKWEHIRUWKH)'$WRWDNHDSRVLWLRQWKDWVXFKVKDULQJLVLQWKH
QDWLRQDOLQWHUHVW7KH)'$PLJKWDOVRHQFRXUDJHSURYLGHUVRI5(06FRPSOLDQW&(SURJUDPVWRHQWHU
DUUDQJHPHQWVWKDWFRXOGVHFXUHSUHVFULEHUSULYDF\DQGVWLOOSHUPLWSURJUDPHYDOXDWLRQ7KHHQFU\SWLRQRI13,
QXPEHUVFRXOGEHDIXUWKHUSDUWRIVXFKDSURSRVDO
5HVWULFWLRQWR,QIRUPDWLYH3URYLGHUV
5(06FRPSOLDQW&(WKDWIROORZVWKH)'$%OXHSULQWLVOLNHO\WRPDNHWKHSUHVFULSWLRQRIRSLRLGVPRUH
VHOHFWLYHDQGOHVVIUHTXHQW3URYLGHUVZKRGRQRWSUHVFULEHRSLRLGVFDQQRWSURYLGHLQIRUPDWLRQRQSUHVFULELQJ
SUDFWLFHVDQGYHU\OLWWOHLQIRUPDWLRQRQWKHPDQDJHPHQWRISDWLHQWVZKRKDYHEHHQSUHVFULEHGRSLRLGV7KLV
SUDFWLFDOFRQVLGHUDWLRQGRHVQRWPHDQWKDWHGXFDWLRQIROORZLQJWKH)'$%OXHSULQWLVQRWRIXVHWRFDUHJLYHUV
ZKRGRQRWUHJXODUO\SUHVFULEHRSLRLGV7KHUHPD\EHEHWZHHQSURYLGHURUFRPPXQLW\LPSDFWVRIHGXFDWLRQ
7KHUHFRXOGEHLQIOXHQFHVRQDFDUHJLYHUV¶VXEVHTXHQWFKRLFHRISDWLHQWVWRUHWDLQRUUHIHU3DWLHQWVSUHVFULEHG
RSLRLGVE\SDLQVSHFLDOLVWVPD\QRQHWKHOHVVEHPDQDJHGE\QRQSUHVFULELQJKHDOWKFDUHSURYLGHUVZKRZRXOG
EHQHILWIURPHGXFDWLRQRQWKHPDQDJHPHQWRISDWLHQWVUHFHLYLQJRSLRLGV1RQHWKHOHVVWKHLPSDFWRI
5(06FRPSOLDQW&(LQORZYROXPHSUHVFULEHUVLVOLNHO\WREHSRRUO\DVVHVVDEOHXQGHUWKHVFKHPDRI)LJXUH
$UHFRPPHQGDWLRQLQ6HFWLRQZDVWRRPLWIURPDQDO\VLVDQ\SURYLGHUVHPHVWHUWKDWZDVQRWSUHFHGHGE\
DWOHDVWWZRVHPHVWHUVLQZKLFKWKHSURYLGHUZURWHSUHVFULSWLRQVIRUDWOHDVWVL[RSLRLGGLVSHQVLQJVLHDQ
DYHUDJHRIRQHSHUPRQWK7KLVIROORZVIURPWKHFRQVLGHUDWLRQRIWKHSRVVLELOLW\RIPHDVXUDEOHLPSDFWRI
5(06FRPSOLDQW&(LQVXFKSUHVFULEHUV
3URYLGHU(GXFDWLRQ7KDW,V1RW5(06&RPSOLDQW
7KHUHFRPPHQGDWLRQVKDYHIRFXVHGRQDGHVLJQWKDWLQFOXGHVDOODFWLYHSUHVFULEHUVRIRSLRLGVLUUHVSHFWLYHRI
ZKHWKHUWKH\XQGHUWDNH5(06FRPSOLDQW&(7KLVFKRLFHLVEDVHGRQVRPHFRUHDGYDQWDJHV
6\VWHPEDVHGDVVHVVPHQWRIIHUVWKHHDV\DYDLODELOLW\RILQIRUPDWLRQRQSUHVFULEHUVZKRKDYHQRW
HOHFWHGWRSXUVXHWKH5(06FRPSOLDQW&(
&RPSUHKHQVLYHDQDO\VHVFDQEHXQGHUWDNHQWKDWLQFOXGHERWKEHWZHHQSUHVFULEHUDQGEHWZHHQHUDV
FRPSDULVRQVVLPXOWDQHRXVO\ZLWKVWDWLVWLFDOFRQWUROIRUIDFWRUVLGHQWLILHGLQWKHFRQFHSWXDOIUDPHZRUN
WKDWPD\YDU\EHWZHHQSUHVFULEHUVRURYHUWLPH7KHVWDWLVWLFDOFRQWUROIRUFKDUDFWHULVWLFVWKDWFRXOG
KDYHEHHQPDWFKLQJIDFWRUVVHUYHVWKHVDPHSXUSRVHRIFRPSDULQJFRPSOHWHUVWRRWKHUZLVHVLPLODU
SURYLGHUVZKRGLGQRWFRPSOHWH5(06FRPSOLDQW&($WWKHVDPHWLPHLQFOXVLRQDVFRYDULDWHVRIWKH
SULRUVWDWHVRIDOORXWFRPHVDVSUHGLFWRUVRIWKHFXUUHQWVWDWHRIWKHVDPHRXWFRPHVFUHDWHVSUHSRVW
FRQWUROLQWKHDQDO\VLVRIWKHLPSDFWRI&(
7KHUHPD\EHVHFXODUWUHQGVLQSUDFWLFH,QFOXGLQJDOOSUHVFULEHUVSHUPLWVKLJKO\SUHFLVHFRQWUROIRU
HQYLURQPHQWDOWUHQGVHYHQDWWKHOHYHORIJHRJUDSKLFDOUHJLRQ
,QWKH53&VXUYH\RISURYLGHUVZKRKDGSUHVFULEHG(5/$RSLRLGVERWKSURYLGHUVZKRUHSRUWHGKDYLQJ
XQGHUJRQH&(WKDWZDVQRWNQRZQWREH5(06FRPSOLDQWDQGSURYLGHUVZKRKDGXQGHUJRQH
5(06FRPSOLDQW&(VFRUHGKLJKHURQVRPHPHDVXUHVRIVDIHSUHVFULELQJDQGSDWLHQWPDQDJHPHQWSUDFWLFHV
WKDQGLGSURYLGHUVZKRGLGQRWUHSRUWKDYLQJSXUVXHG&(RQRSLRLGSUHVFULSWLRQDQGSDWLHQWPDQDJHPHQW
7KHVXUYH\ZDVDKLJKO\VHOIVHOHFWHGVDPSOHRIHOLJLEOHSUHVFULEHUVDQGPD\KDYHVXIIHUHGIURPELDVHG
HVWLPDWHVRQWKDWDFFRXQW1RQHWKHOHVVLWUDLVHVWKHSRVVLELOLW\WKDWQRQ5(06FRPSOLDQW&(PD\DIIHFW
SUHVFULEHUEHKDYLRU
&RQVLGHULQJWKHVXUYH\UHVXOWVIURP(5/$SUHVFULEHUVWKHZLGHVSUHDGUHTXLUHPHQWVWKDW86SUHVFULEHUV
REWDLQDQGUHYLVLW&(LQVDIHRSLRLGSUHVFULSWLRQUDLVHVDFRQFHUQWKDWRQH³HQYLURQPHQWDO´IDFWRUDIIHFWLQJDOO
WKHRXWFRPHVSURSRVHGKHUHLV&(IURPVRXUFHVQRWGRFXPHQWHGDV5(06FRPSOLDQW&($QDQDO\VLV
,PSDFWRI5(06&RPSOLDQW&( -XO\
UHVWULFWHGWRWKRVHZKRHYHQWXDOO\FRPSOHWHD5(06FRPSOLDQW&(SURJUDPLVDWWUDFWLYHDVWKHVHSUHVFULEHUV
DUHXQOLNHO\WRKDYHSXUVXHGDQRWKHUSURJUDPDWDERXWWKHVDPHWLPH
7KHDQDO\VHVGHVFULEHGKHUHFRXOGEHFDUULHGRXWLQWKHSRSXODWLRQRISUHVFULEHUVHPHVWHUVIRUZKLFKWKH
SUHVFULEHUHYHQWXDOO\FKRVH5(06FRPSOLDQW&()RUWLJKWHUFRQWURORIUHJLRQDQGRWKHUWLPHLQYDULDQW
SUHVFULEHUFKDUDFWHULVWLFVRQHFRXOGDGGPDWFKLQJE\SURYLGHU,'WRDOOWKHDQDO\VHVWKDW\LHOGHGHVWLPDWHVRI
HIIHFW5HWDLQLQJFDOHQGDU\HDUDVDSUHGLFWRUZRXOGSHUPLWOLPLWHGFRQWUROIRUVHFXODUHIIHFWVXQGHUWZR
DVVXPSWLRQV
7KHQXPEHURISURYLGHUVZKRHOHFW5(06FRPSOLDQW&(LVODUJHHQRXJKWRSHUPLWVWDEOHHVWLPDWHVRI
WHPSRUDOHIIHFWVDGMXVWLQJIRU5(06FRPSOLDQW&(VWDWXV
7KHSHULRGRIREVHUYDWLRQIRUHDFKRIWKHSURYLGHUVFRYHUVWKHFDOHQGDU\HDUVXVHGIRUWKHHYDOXDWLRQ
RI&(VRYHUDOOVRWKDWWKHUHDUHFRQFXUUHQWHVWLPDWHVRIWUHQG
:K\1RW'LUHFW$VVHVVPHQWRI&(3DUWLFLSDQWV"
$NH\SDUWRI&(SURJUDPVLVWKHDVVHVVPHQWRIZKDWNQRZOHGJHKDVEHHQDEVRUEHGDQGODWHUUHWDLQHGE\
SDUWLFLSDQWV7KHLQIRUPDWLRQSURYLGHVDSULPDU\PHDVXUHRIWKHSURJUDP¶VDELOLW\WRFRPPXQLFDWHWRWKH
SDUWLFLSDQWVLQWHUPVWKDWDUHDFFHVVLEOHDQGPHPRUDEOH$VQRWHGLQ6HFWLRQUHWHQWLRQLVDILUVWVWHS
WRZDUGLPSDFWRQSUDFWLFH
4XHVWLRQQDLUHVRQSUDFWLFHFDQEHIROGHGLQWRWKHNQRZOHGJHDVVHVVPHQWV$FRQFHUQLVWKDWYROXQWHHUHG
UHVSRQVHVZRXOGEHLQIOXHQFHGE\WKHSURYLGHU¶VDZDUHQHVVRIWKHGHVLUHGHIIHFWVRIWKHWUDLQLQJ,QDQRWKHU
VHWWLQJPDUNHGE\SDVVLRQDWHSXEOLFGHEDWHWKHFRQWURYHUV\RYHUWKHVDIHW\RIVRFDOOHGWKLUGJHQHUDWLRQRUDO
FRQWUDFHSWLYHVSUHVFULELQJSUDFWLFHGLGQRWUHIOHFWWKHSUDFWLWLRQHUV¶DVVHUWHGEHOLHIVZKLFKFRLQFLGHGZLWK
VWDQGDUGYLHZVRILQGLFDWLRQDQGVDIHW\
,PSDFWRI5(06&RPSOLDQW&( -XO\
',6&866,21
([WHQGHGIROORZXSRIODUJHQXPEHUVRIRSLRLGSUHVFULEHUVSURYLGHVDULFKHQYLURQPHQWIRUDVVHVVLQJWKH
LPSDFWRI&(SURJUDPV:HKDYHSURSRVHGKHUHWKDWWKHUHEHVL[PRQWKXSGDWHVRISUHVFULEHUV¶KLVWRULFDO
SUDFWLFHSDWWHUQVDQGH[SHULHQFHDVZHOODVWKHLUFXUUHQWSUHVFULELQJSUDFWLFHVDQGLQGLFHVRIJRRGSDWLHQW
PDQDJHPHQW$GGHGWRWKHVHGDWDZRXOGEHRWKHUFRYDULDWHVLQFOXGLQJSK\VLFLDQFKDUDFWHULVWLFVDQGFDOHQGDU
WLPHDQGUHJLRQDVSUR[LHVIRUHQYLURQPHQWDOIHDWXUHV
,PSOHPHQWDWLRQRIWKHSURSRVHGLPSDFWDQDO\VLVSUHVXSSRVHVDPLQLPDOIDYRUDEOHVHWWLQJRQHZLWKDOLVWRI
WKH13,QXPEHUVRIDOOSUHVFULEHUVZKRKDYHFRPSOHWHG&(WRJHWKHUZLWKWKHGDWHRIFRPSOHWLRQRI&(IRU
HDFKWRJHWKHUZLWKDGDWDUHVRXUFHWKDWLVOLQNDEOHWRWKH13,,IWKHUHVRXUFHLQFOXGHVLQIRUPDWLRQDWWKHOHYHO
RI1DWLRQDO'UXJ&RGH1'&DOORUDOPRVWDOOGLVSHQVLQJVDVVRFLDWHGZLWKDSURYLGHULWLVSRVVLEOHWRVWXG\
DOOSURSRVHGRSLRLGGLVSHQVLQJSUDFWLFHV,IWKHUHVRXUFHDGGLWLRQDOO\LQFOXGHVLQIRUPDWLRQRQSDWLHQW
GHPRJUDSKLFVDQGDOORUQHDUO\DOOWKHSDWLHQW¶VGLDJQRVHVPHGLFDOFDUHHQFRXQWHUVDQGSURFHGXUHVDQGGUXJ
GLVSHQVLQJVDULFKHUDVVHVVPHQWRIWKHPDQDJHPHQWRISDWLHQWVZKRUHFHLYHRSLRLGVLVSRVVLEOH
7DEOHFRPSDUHVDVSHFWVRIWKHSURSRVHGDQDO\VHVWRWKHDQDO\WLFFRQVWUDLQWVSUHVHQWHGLQ6HFWLRQ
7DEOH &RUUHVSRQGHQFHEHWZHHQFRQFOXVLRQVIURPWKH&RQFHSWXDO0RGHODQGWKHSURSRVHG
DQDO\VHV
&RQVWUDLQW 3UHGLFWRUV 0RGHOVWUXFWXUH
7KHIXOOHIIHFWRI&(PD\QRWEH ,PPHGLDWHDQGODJJHGHIIHFWVRI&( 5HSHDWHGPHDVXUHVRYHUWLPH
LPPHGLDWH FRPSOHWLRQDQGODJJHGSULRUYDOXHV ZLWKLQSUHVFULEHU
RIWKHRXWFRPHPHDVXUH
&(PD\DIIHFWSDWLHQWRXWFRPHV 3DWLHQWRYHUGRVHVKRSSLQJ 5HSHDWHGPHDVXUHVDQDO\VLV
WKURXJKPHFKDQLVPVRWKHUWKDQ LQFRUSRUDWHGDVERWKHQGSRLQWDQG DFFRXQWVIRUZLWKLQSUHVFULEHU
SUHVFULELQJSDWWHUQV ODJJHGSUHGLFWRUV EHWZHHQSHULRGFRUUHODWLRQV
EH\RQGWKRVHPRGHOHGGLUHFWO\
WKURXJKFRYDULDWHV
&DUHJLYHUV¶KLVWRULFDOSUHVFULELQJ &RYDULDWHVWREHLQFOXGHGDV
Å6HH³3UHGLFWRUV´
SUDFWLFHVDQGWKHFKDUDFWHULVWLFVRI SUHGLFWRUVZKHQHYHUWKH\SUHGLFW
WKHLUSDWLHQWVDUHSRWHQWLDO ERWK&(DQGDQRXWFRPHDQGVRDUH
FRQIRXQGLQJIDFWRUV FRQIRXQGHUV
&DUHJLYHUV¶KLVWRULFDOSUHVFULELQJ 6\VWHPDWLFDOO\H[DPLQHLQWHUDFWLRQ Å6HH³3UHGLFWRUV´
SUDFWLFHVDQGWKHFKDUDFWHULVWLFVRI WHUPVEHWZHHQLPSRUWDQWSUHGLFWRUV
WKHLUSDWLHQWVDUHSRWHQWLDOHIIHFW
PRGLILHUV
&DOHQGDUWLPHDQGUHJLRQVWDQGLQDV ,QFOXGHFDOHQGDU\HDUDQGUHJLRQLQ &KHFNIRULQWHUDFWLRQVEHWZHHQ
SUR[\PHDVXUHV DOOPRGHOV FDOHQGDU\HDUDQGUHJLRQ
&(PD\EHZLGHVSUHDG (IIHFWRIWLPHYDU\LQJ 5HVWULFWDQDO\VLVWRLQGLYLGXDOV
HQYLURQPHQWDOIDFWRUVPD\EH NQRZQWRKDYHFRPSOHWHG&(DQG
OLPLWHGE\³FRQWDPLQDWLRQ´IURP WKHUHIRUHDUHXQOLNHO\WRKDYH
FRQFXUUHQWXQUHFRUGHG&( SXUVXHGRWKHU&(
&(±5(06FRPSOLDQW&(
7KHSURSRVHGDQDO\VHVPRUHRYHULQFRUSRUDWHPRVWRIWKHJXLGHOLQHVVHWRXWE\WKH&'&IRUWKHHYDOXDWLRQRI
VDIHSUHVFULELQJRIRSLRLGV$SSHQGL[$7DEOH$LQGLFDWHVZKLFKRIWKHJXLGHOLQHVFDQEHPHW7KH
HOHPHQWVWKDWKDYHEHHQPLVVHGDUHRQHVWKDWFXUUHQWO\ZRXOGUHTXLUHKXPDQUHDGLQJRIWKHPHGLFDOUHFRUG
7KHDSSOLFDWLRQRIQDWXUDOODQJXDJHSURFHVVLQJWRVXIILFLHQWO\ZHOOVWUXFWXUHG(+5VPD\LQWKHIXWXUHSURYLGH
DURXWHLQWRVXFKTXHVWLRQV $WSUHVHQWUHOLDQFHRQVXFKV\VWHPVPD\EHSUHPDWXUH
$QHIIHFWRIWKHJHQHUDOGLIIXVLRQRINQRZOHGJHDERXWRSLRLGSUHVFULELQJSUDFWLFHVWKDWUHVXOWVIURPSXEOLF
DWWHQWLRQDQGZLGHVSUHDG&(PD\DSSHDUDVUHJLRQDOWHPSRUDOWUHQGVLQRSLRLGSUHVFULELQJSUDFWLFHV$XVHIXO
,PSDFWRI5(06&RPSOLDQW&( -XO\
DVSHFWRIWKHPRGHOLQJSURSRVHGDERYHLVWKDWWKHSURSRVHGFRYDULDWHVFDQEHLQYHVWLJDWHGDVSUHGLFWRUVRI
HDFKRIWKHRXWFRPHVLQWKHDEVHQFHRIDQ\&(GDWD.QRZOHGJHRISUHGLFWRUVRIXQGHVLUDEOHRSLRLG
SUHVFULSWLRQSUDFWLFHDQGIDLOXUHWRPHHWPDQDJHPHQWJXLGHOLQHVPLJKWSURYLGHQXDQFHDVWRZKLFKRIWKH
HOHPHQWVLQWKH)'$%OXHSULQWUHTXLUHGVSHFLDOFRQVLGHUDWLRQLQSRVVLEO\LGLRV\QFUDWLFWDUJHWSRSXODWLRQV
$VZLWK53&5HSRUWLWLVSRVVLEOHWKDWQRDPRXQWRIDQDO\VLVZLOOEHWHDVHRXWDQLQGHSHQGHQWHIIHFWRI
5(06FRPSOLDQW&(RQRSLRLGSUHVFULSWLRQRURQSDWLHQWPDQDJHPHQW7KHQHDUXQLYHUVDOUHTXLUHPHQWIRU
HGXFDWLRQRQRSLRLGSUHVFULELQJIURPVWDWHERDUGVRIPHGLFLQHPHDQVWKHUHZLOOEHIHZSURYLGHUVZKRKDYH
QRWUHFHLYHGIRUPDOWUDLQLQJDVSDUWRIWKHLUPHGLFDODFFUHGLWDWLRQ7KHKHDY\IRFXVRQWKHRSLRLGHSLGHPLFE\
PHGLFDODQGOD\PHGLDLQWKH86PHDQVWKDWQRSUHVFULEHUZLOOEHXQDZDUHRIWKHFRQFHUQV(QYLURQPHQWDO
IDFWRUVWKDWDUHQRWZHOOFKDUDFWHUL]HGLQDYDLODEOHGDWDPD\RYHUZKHOPWKHGRFXPHQWDEOHHIIHFWVRI
5(06FRPSOLDQW&(
7KH&'&JXLGHOLQHV¶DXWKRUVKDYHSRLQWHGRXWWKDWUHVWULFWLRQVRQRSLRLGSUHVFULELQJFDQEHPLVDSSOLHGWRWKH
GHWULPHQWRISDWLHQWV 7KHSRVVLEOHEHQHILWVRUKDUPVWRSDWLHQWVGRQRWIRUPSDUWRIWKLVSURSRVHGDQDO\VLVRI
WKHEHKDYLRURISUHVFULEHUV
,PSDFWRI5(06&RPSOLDQW&( -XO\
&21&/86,21
([LVWLQJGDWDV\VWHPVSURYLGHDULFKEDVLVIRUWKHHYDOXDWLRQRIVDIHRSLRLGSUHVFULELQJDVGHVFULEHGLQ&'&
JXLGHOLQHV(YDOXDWLRQVRISUHGLFWRUVDQGRIVWDWHE\VWDWHWUHQGVFRXOGEHGRQHQRZ$GGHGHYDOXDWLRQRI
HGXFDWLRQDOSURJUDPVWKDWPHHWWKH)'$%OXHSULQWLVDPDWWHURILGHQWLI\LQJSURJUDPFRPSOHWHUVDQGOLQNLQJ
WKHLULGHQWLILHUVLQWRWKHSUHVHQWO\DYDLODEOHGDWDV\VWHPV
,PSDFWRI5(06&RPSOLDQW&( -XO\
5()(5(1&(6
)HGHUDWLRQRI6WDWH0HGLFDO%RDUGV&RQWLQXLQJ0HGLFDO(GXFDWLRQ%RDUGE\%RDUG2YHUYLHZ8SGDWHG
KWWSZZZIVPERUJVHDUFK³FRQWLQXLQJ´$FFHVVHG-XQH
86)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$(GXFDWLRQ%OXHSULQWIRU+HDOWK&DUH3URYLGHUV,QYROYHGLQWKH
7UHDWPHQWDQG0RQLWRULQJRI3DWLHQWVZLWK3DLQ6HSWHPEHU
KWWSVZZZIGDJRYPHGLDGRZQORDGDFFHVVHG-XO\
5(063URJUDP&RPSDQLHV([WHQGHG5HOHDVH(5DQG/RQJ$FWLQJ/$2SLRLG$QDOJHVLFV)RUW\
(LJKW0RQWK)'$$VVHVVPHQW5HSRUW)LQDO9$SSHQGL[3UHVFULEHU)ROORZXS6XUYH\)XOO5HSRUW
$XJXVW
&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ4XDOLW\,PSURYHPHQWDQG&DUH&RRUGLQDWLRQ,PSOHPHQWLQJ
WKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ1DWLRQDO&HQWHUIRU,QMXU\3UHYHQWLRQDQG
&RQWURO'LYLVLRQRI8QLQWHQWLRQDO,QMXU\3UHYHQWLRQ$WODQWD*$
,49,$QRDXWKRUOLVWHG(5/$2SLRLG$QDOJHVLFV5(068WLOL]DWLRQDQG3UHVFULELQJ3DWWHUQV
6WXG\IRU5HSRUW(IIHFWRI(5/$2SLRLG5(06(GXFDWLRQRQ2SLRLG8WLOL]DWLRQ5HSRUW0D\
&HSHGD06(VSRVLWR'%.HUQ'00RVLHU0/3KLOOLSV66HFUHVW0+:HGLQ*3,PSDFWRIWKH
([WHQGHG5HOHDVH/RQJ$FWLQJ(5/$2SLRLG$QDOJHVLFV5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\5(06
RQSUHVFULELQJWRRSLRLGQRQWROHUDQWSDWLHQWVDQGFRQFRPLWDQWXVHUVRIFHQWUDOQHUYRXVV\VWHPGHSUHVVDQWV
0DQXVFULSWLQSUHSDUDWLRQ
%XFKHU%DUWHOVRQ%/H/DLW0&*UHHQ-/&HSHGD06&RSODQ300D]LHUH-<:HGLQ*3'DUW5&
&KDQJHVLQPLVXVHDQGDEXVHRISUHVFULSWLRQRSLRLGVIROORZLQJLPSOHPHQWDWLRQRI([WHQGHG5HOHDVHDQG
/RQJ$FWLQJ2SLRLG$QDOJHVLF5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\3KDUPDFRHSLGHPLRO'UXJ6DI
6HS
3DWULFN6:)U\&(-RQHV7)%XQWLQ0%,PSOHPHQWDWLRQRISUHVFULSWLRQGUXJPRQLWRULQJSURJUDPV
DVVRFLDWHGZLWKUHGXFWLRQVLQRSLRLGUHODWHGGHDWKUDWHV+HDOWK$II0LOOZRRG-XO
:KLWPRUH&&:KLWH01%XQWLQ0%)U\&(&DODPDUL.3DWULFN6:6WDWHODZVDQGSROLFLHVWRUHGXFH
RSLRLGUHODWHGKDUP$TXDOLWDWLYHDVVHVVPHQWRI3'03VDQGQDOR[RQHSURJUDPVLQWHQ866WDWHV3UHY0HG
5HS'HF
*UHHQ&$3HUULQ1$+D]HOKXUVW%-DQRII6/'H9HDXJK*HLVV$&DUUHOO'6*ULMDOYD&*/LDQJ&
(QJHU&/&RSODQ30,GHQWLI\LQJDQGFODVVLI\LQJRSLRLGUHODWHGRYHUGRVHVDYDOLGDWLRQVWXG\
3KDUPDFRHSLGHPLRO'UXJ6DI$SUGRLSGV>(SXEDKHDGRISULQW@
:DONHU$0:HDWKHUE\/%&HSHGD06%UDGIRUG'<XDQ<3RVVLEOHRSLRLGVKRSSLQJDQGLWV
FRUUHODWHV&OLQ-3DLQ1RY
:DONHU$0:HDWKHUE\/%&HSHGD06%UDGIRUG'LQIRUPDWLRQRQGRFWRUDQGSKDUPDF\VKRSSLQJIRU
RSLRLGVDGGVOLWWOHWRWKHLGHQWLILFDWLRQRISUHVXPSWLYHRSLRLGDEXVHGLVRUGHUVLQKHDOWKLQVXUDQFHFODLPVGDWD
6XEVW$EXVH5HKDELOLQSUHVV
+DOO$-/RJDQ-(7REOLQ5/.DSODQ-$.UDQHU-&%L[OHU'&URVE\$(3DXOR]]L/-3DWWHUQVRI
DEXVHDPRQJXQLQWHQWLRQDOSKDUPDFHXWLFDORYHUGRVHIDWDOLWLHV-$0$'HF
+DOO$-/RJDQ-(7REOLQ5/.DSODQ-$.UDQHU-&%L[OHU'&URVE\$(3DXOR]]L/-3DWWHUQVRI
DEXVHDPRQJXQLQWHQWLRQDOSKDUPDFHXWLFDORYHUGRVHIDWDOLWLHV-$0$'HF
,PSDFWRI5(06&RPSOLDQW&( -XO\
3DXOR]]L/-.LOERXUQH(06KDK1*1ROWH.%'HVDL+$/DQGHQ0*+DUYH\:/RULQJ/'$
KLVWRU\RIEHLQJSUHVFULEHGFRQWUROOHGVXEVWDQFHVDQGULVNRIGUXJRYHUGRVHGHDWK3DLQ0HG
-DQ
3HLUFH*/6PLWK0-$EDWH0$+DOYHUVRQ-'RFWRUDQGSKDUPDF\VKRSSLQJIRUFRQWUROOHGVXEVWDQFHV
0HG&DUH-XQ
*ZLUD%DXPEODWW-$:LHGHPDQ&'XQQ-56FKDIIQHU:3DXOR]]L/--RQHV7)+LJKULVNXVHE\
SDWLHQWVSUHVFULEHGRSLRLGVIRUSDLQDQGLWVUROHLQRYHUGRVHGHDWKV-$0$,QWHUQ0HG0D\
6$6(768VHU¶V*XLGH=HUR,QIODWHG&RXQW5HJUHVVLRQ2YHUYLHZ
KWWSVGRFXPHQWDWLRQVDVFRP"GRFVHW,G HWVKSXJ GRFVHW7DUJHW HWVKSXJBKSFRXQWUHJBGHWDLOVKWP GRFVHW
9HUVLRQ ORFDOH HQ$FFHVVHG-XQH
3ODWW5%URZQ-65REE00F&OHOODQ0%DOO51JX\HQ0'6KHUPDQ5(7KH)'$6HQWLQHO,QLWLDWLYH
$QHYROYLQJQDWLRQDOUHVRXUFH1(QJO-0HG1RY
86)RRGDQG'UXJ$GPLQLVWUDWLRQ6HQWLQHOLVD1DWLRQDO0HGLFDO3URGXFW0RQLWRULQJ6\VWHP
KWWSVZZZVHQWLQHOLQLWLDWLYHRUJ$FFHVVHG-XQH
1,+&ROODERUDWRU\'LVWULEXWHG5HVHDUFK1HWZRUN2SWXP,QVLJKW'DWD'HVFULSWLRQ
KWWSVUHWKLQNLQJFOLQLFDOWULDOVRUJQLKFROODERUDWRU\GLVWULEXWHGUHVHDUFKQHWZRUNRSWXPLQVLJKW$FFHVVHG
-XQH
1,+&ROODERUDWRU\'LVWULEXWHG5HVHDUFK1HWZRUN+HDOWK&RUH'DWD'HVFULSWLRQ
KWWSVUHWKLQNLQJFOLQLFDOWULDOVRUJQLKFROODERUDWRU\GLVWULEXWHGUHVHDUFKQHWZRUNKHDOWKFRUH$FFHVVHG
-XQH
/L<=KX<&KHQ&:DQJ;&KRL<+HQULNVHQ&:LQWHUVWHLQ$*,QWHUQDOYDOLGDWLRQRI0HGLFDLG
$QDO\WLFH;WUDFW0$;GDWDFDSWXUHIRUFRPSUHKHQVLYHPDQDJHGFDUHSODQHQUROOHHVIURPWR
3KDUPDFRHSLGHPLRO'UXJ6DI2FW
1,+&ROODERUDWRU\'LVWULEXWHG5HVHDUFK1HWZRUN+DUYDUG3LOJULP+HDOWK&DUH,QVWLWXWH'DWD
'HVFULSWLRQKWWSVUHWKLQNLQJFOLQLFDOWULDOVRUJQLKFROODERUDWRU\GLVWULEXWHGUHVHDUFKQHWZRUNKDUYDUG
SLOJULPKHDOWKFDUHLQVWLWXWH$FFHVVHG-XQH
:ULWWHQFRPPXQLFDWLRQIURP1RUPDQ.DKQ&RQYHQHU-RLQW&RPPLWWHHRQ&RQWLQXLQJ(GXFDWLRQWR
&KDLUWR5(063URJUDP&RPSDQLHV53&DQG&RFKDLUV53&0HWULFVDQG&(6XEWHDPVFRSLHGWR'RULV
$XWK86)RRGDQG'UXJ$GPLQLVWUDWLRQ)HEUXDU\
%OXP&:DOO**LDQQRXULV-,49,$6\VWHPDQG0HWKRGIRU&UHDWLRQRI3HUVLVWHQW3DWLHQW
,GHQWLILFDWLRQKWWSVZZZRQVFRSHFRPLSRZQHUHQRZQHULSLTYLDLQFKWPODFFHVVHG-XQH
+HLQHPDQQ/$-/HZLV0$$VVPDQQ$*UDYHQV/*XJJHQPRRV+RO]PDQQ,&RXOGSUHIHUHQWLDO
SUHVFULELQJDQGUHIHUUDOEHKDYLRURISK\VLFLDQVH[SODLQWKHHOHYDWHGWKURPERVLVULVNIRXQGWREHDVVRFLDWHG
ZLWKRUDOFRQWUDFHSWLYHV"3KDUPDFRHSLGHPLRO'UXJ6DI±
'XQQ1:KLWH,)UHHPDQWOH60DQQ5'7KHUROHRISUHVFULELQJDQGUHIHUUDOELDVLQVWXGLHVRIWKH
DVVRFLDWLRQEHWZHHQWKLUGJHQHUDWLRQRUDOFRQWUDFHSWLYHVDQGLQFUHDVHGULVNRIWKURPERHPEROLVP
3KDUPDFRHSLGHPLRO'UXJ6DI±
0DVWHUV(75DPDSUDVDQ$0DUGHNLDQ-3DOPHU5(*URVV'(&URQNLWH'9RQ.RUII0&DUUHOO'6
1DWXUDOODQJXDJHSURFHVVLQJLGHQWLILHGSUREOHPRSLRLGXVHDQGLWVDVVRFLDWHGKHDOWKFDUHFRVWV-3DLQ3DOOLDW
&DUH3KDUPDFRWKHU-XQ6HS
,PSDFWRI5(06&RPSOLDQW&( -XO\
&DUUHOO'66FKRHQ5(/HIIOHU'$0RUULV05RVH6%DHU$&URFNHWW6'*RXUHYLWFK5$'HDQ.0
0HKURWUD$&KDOOHQJHVLQDGDSWLQJH[LVWLQJFOLQLFDOQDWXUDOODQJXDJHSURFHVVLQJV\VWHPVWRPXOWLSOHGLYHUVH
KHDOWKFDUHVHWWLQJV-$P0HG,QIRUP$VVRF6HS
+D]OHKXUVW%*UHHQ&$3HUULQ1$%UDQGHV-&DUUHOO'6%DHU$'H9HDXJK*HLVV$&RSODQ30
8VLQJQDWXUDOODQJXDJHSURFHVVLQJRIFOLQLFDOWH[WWRHQKDQFHLGHQWLILFDWLRQRIRSLRLGUHODWHGRYHUGRVHVLQ
HOHFWURQLFKHDOWKUHFRUGVGDWD3KDUPDFRHSLGHPLRO'UXJ6DI-XQGRLSGV>(SXE
DKHDGRISULQW@
'RZHOO'+DHJHULFK7&KRX51R6KRUWFXWVWR6DIHU2SLRLG3UHVFULELQJ1(QJO-0HG$SU
,PSDFWRI5(06&RPSOLDQW&( -XO\
$33(1',;$&'&*8,'(/,1(6
6HHUHIHUHQFH&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ4XDOLW\,PSURYHPHQWDQG&DUH&RRUGLQDWLRQ
,PSOHPHQWLQJWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ1DWLRQDO&HQWHUIRU,QMXU\
3UHYHQWLRQDQG&RQWURO'LYLVLRQRI8QLQWHQWLRQDO,QMXU\3UHYHQWLRQ$WODQWD*$
)XOOWH[W
2SLRLGVDUHQRWILUVWOLQHWKHUDS\
1RQSKDUPDFRORJLFWKHUDS\DQGQRQRSLRLGSKDUPDFRORJLFWKHUDS\DUHSUHIHUUHGIRUFKURQLFSDLQ
&OLQLFLDQVVKRXOGFRQVLGHURSLRLGWKHUDS\RQO\LIH[SHFWHGEHQHILWVIRUERWKSDLQDQGIXQFWLRQDUH
DQWLFLSDWHGWRRXWZHLJKULVNVWRWKHSDWLHQW,IRSLRLGVDUHXVHGWKH\VKRXOGEHFRPELQHGZLWK
QRQSKDUPDFRORJLFWKHUDS\DQGQRQRSLRLGSKDUPDFRORJLFWKHUDS\DVDSSURSULDWH
(VWDEOLVKJRDOVIRUSDLQDQGIXQFWLRQ
%HIRUHVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQFOLQLFLDQVVKRXOGHVWDEOLVKWUHDWPHQWJRDOVZLWKDOO
SDWLHQWVLQFOXGLQJUHDOLVWLFJRDOVIRUSDLQDQGIXQFWLRQDQGVKRXOGFRQVLGHUKRZRSLRLGWKHUDS\ZLOOEH
GLVFRQWLQXHGLIEHQHILWVGRQRWRXWZHLJKULVNV&OLQLFLDQVVKRXOGFRQWLQXHRSLRLGWKHUDS\RQO\LIWKHUHLV
FOLQLFDOO\PHDQLQJIXOLPSURYHPHQWLQSDLQDQGIXQFWLRQWKDWRXWZHLJKVULVNVWRSDWLHQWVDIHW\
'LVFXVVULVNVDQGEHQHILWV
%HIRUHVWDUWLQJDQGSHULRGLFDOO\GXULQJRSLRLGWKHUDS\FOLQLFLDQVVKRXOGGLVFXVVZLWKSDWLHQWVNQRZQULVNV
DQGUHDOLVWLFEHQHILWVRIRSLRLGWKHUDS\DQGSDWLHQWDQGFOLQLFLDQUHVSRQVLELOLWLHVIRUPDQDJLQJWKHUDS\
8VHLPPHGLDWHUHOHDVHRSLRLGVZKHQVWDUWLQJ
:KHQVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQFOLQLFLDQVVKRXOGSUHVFULEHLPPHGLDWHUHOHDVHRSLRLGV
LQVWHDGRIH[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGV
8VHWKHORZHVWHIIHFWLYHGRVH
:KHQRSLRLGVDUHVWDUWHGFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVDJH&OLQLFLDQVVKRXOGXVH
FDXWLRQZKHQSUHVFULELQJRSLRLGVDWDQ\GRVDJHVKRXOGFDUHIXOO\UHDVVHVVHYLGHQFHRILQGLYLGXDOEHQHILWV
DQGULVNVZKHQFRQVLGHULQJLQFUHDVLQJGRVDJHWRPRUSKLQHPLOOLJUDPHTXLYDOHQWV00(SHUGD\
DQGVKRXOGDYRLGLQFUHDVLQJGRVDJHWR00(SHUGD\RUFDUHIXOO\MXVWLI\DGHFLVLRQWRWLWUDWHGRVDJH
WR00(SHUGD\
3UHVFULEHVKRUWGXUDWLRQVIRUDFXWHSDLQ
/RQJWHUPRSLRLGXVHRIWHQEHJLQVZLWKWUHDWPHQWRIDFXWHSDLQ:KHQRSLRLGVDUHXVHGIRUDFXWHSDLQ
FOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVHRILPPHGLDWHUHOHDVHRSLRLGVDQGVKRXOGSUHVFULEHQR
JUHDWHUTXDQWLW\WKDQQHHGHGIRUWKHH[SHFWHGGXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV7KUHH
GD\VRUOHVVZLOORIWHQEHVXIILFLHQWPRUHWKDQVHYHQGD\VZLOOUDUHO\EHQHHGHG
(YDOXDWHEHQHILWVDQGKDUPVIUHTXHQWO\
&OLQLFLDQVVKRXOGHYDOXDWHEHQHILWVDQGKDUPVZLWKSDWLHQWVZLWKLQRQHWRIRXUZHHNVRIVWDUWLQJRSLRLG
WKHUDS\IRUFKURQLFSDLQRURIGRVHHVFDODWLRQ&OLQLFLDQVVKRXOGHYDOXDWHEHQHILWVDQGKDUPVRIFRQWLQXHG
WKHUDS\ZLWKSDWLHQWVHYHU\WKUHHPRQWKVRUPRUHIUHTXHQWO\,IEHQHILWVGRQRWRXWZHLJKKDUPVRI
FRQWLQXHGRSLRLGWKHUDS\FOLQLFLDQVVKRXOGRSWLPL]HRWKHUWKHUDSLHVDQGZRUNZLWKSDWLHQWVWRWDSHU
RSLRLGVWRORZHUGRVDJHVRUWRWDSHUDQGGLVFRQWLQXHRSLRLGV
,PSDFWRI5(06&RPSOLDQW&( -XO\
8VHVWUDWHJLHVWRPLWLJDWHULVN
%HIRUHVWDUWLQJDQGSHULRGLFDOO\GXULQJFRQWLQXDWLRQRIRSLRLGWKHUDS\FOLQLFLDQVVKRXOGHYDOXDWHULVN
IDFWRUVIRURSLRLGUHODWHGKDUPV&OLQLFLDQVVKRXOGLQFRUSRUDWHLQWRWKHPDQDJHPHQWSODQVWUDWHJLHVWR
PLWLJDWHULVNLQFOXGLQJFRQVLGHULQJRIIHULQJQDOR[RQHZKHQIDFWRUVWKDWLQFUHDVHULVNIRURSLRLGRYHUGRVH
VXFKDVKLVWRU\RIRYHUGRVHKLVWRU\RIVXEVWDQFHXVHGLVRUGHUKLJKHURSLRLGGRVDJHV00(SHUGD\
RUFRQFXUUHQWEHQ]RGLD]HSLQHXVHDUHSUHVHQW
5HYLHZSUHVFULSWLRQGUXJPRQLWRULQJSURJUDP3'03GDWD
&OLQLFLDQVVKRXOGUHYLHZWKHSDWLHQW¶VKLVWRU\RIFRQWUROOHGVXEVWDQFHSUHVFULSWLRQVXVLQJVWDWHSUHVFULSWLRQ
GUXJPRQLWRULQJSURJUDP3'03GDWDWRGHWHUPLQHZKHWKHUWKHSDWLHQWLVUHFHLYLQJRSLRLGGRVDJHVRU
GDQJHURXVFRPELQDWLRQVWKDWSXWKLPRUKHUDWKLJKULVNIRURYHUGRVH&OLQLFLDQVVKRXOGUHYLHZ3'03
GDWDZKHQVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQDQGSHULRGLFDOO\GXULQJRSLRLGWKHUDS\IRUFKURQLFSDLQ
UDQJLQJIURPHYHU\SUHVFULSWLRQWRHYHU\WKUHHPRQWKV
8VHXULQHGUXJWHVWLQJ
:KHQSUHVFULELQJRSLRLGVIRUFKURQLFSDLQFOLQLFLDQVVKRXOGXVHXULQHGUXJWHVWLQJEHIRUHVWDUWLQJRSLRLG
WKHUDS\DQGFRQVLGHUXULQHGUXJWHVWLQJDWOHDVWDQQXDOO\WRDVVHVVIRUSUHVFULEHGPHGLFDWLRQVDVZHOODV
RWKHUFRQWUROOHGSUHVFULSWLRQGUXJVDQGLOOLFLWGUXJV
$YRLGFRQFXUUHQWRSLRLGDQGEHQ]RGLD]HSLQHSUHVFULELQJ
&OLQLFLDQVVKRXOGDYRLGSUHVFULELQJRSLRLGSDLQPHGLFDWLRQDQGEHQ]RGLD]HSLQHVFRQFXUUHQWO\ZKHQHYHU
SRVVLEOH
2IIHUWUHDWPHQWIRURSLRLGXVHGLVRUGHU
&OLQLFLDQVVKRXOGRIIHURUDUUDQJHHYLGHQFHEDVHGWUHDWPHQWXVXDOO\PHGLFDWLRQDVVLVWHGWUHDWPHQWZLWK
EXSUHQRUSKLQHRUPHWKDGRQHLQFRPELQDWLRQZLWKEHKDYLRUDOWKHUDSLHVIRUSDWLHQWVZLWKRSLRLGXVH
GLVRUGHU
,QDGGLWLRQWRIRUPXODWLQJWKHJXLGHOLQHVDERYHWKH&'&H[SHUWFRPPLWWHHSUHVHQWHGWKHIROORZLQJPHDVXUHV
IRUDVVHVVLQJFRQIRUPDQFHWRWKHJXLGHOLQH:HKDYHDGGHGDQQRWDWLRQDVWRZKLFKRIWKHVHPHDVXUHVFDQEH
DVFHUWDLQHGLQDGLVSHQVLQJGDWDEDVHDQGZKLFKUHTXLUHDIXOOLQVXUDQFHFODLPVRQ(+5GDWDEDVH
,PSDFWRI5(06&RPSOLDQW&( -XO\
7DEOH$ 0HDVXUHVWRDVVHVV&'&*XLGHOLQHV
)HDVLEOHIRUWHVWLQJLQDFODLPVRU(+5HQYLURQPHQWk
)HDVLEOHIRUWHVWLQJZLWKGLVSHQVLQJRQO\GDWDk
6KRUWWHUPRSLRLGWKHUDS\
7KHSHUFHQWDJHRISDWLHQWVZLWKDQHZRSLRLGSUHVFULSWLRQIRUDQLPPHGLDWHUHOHDVH kk
RSLRLG
7KHSHUFHQWDJHRISDWLHQWVZLWKDQHZRSLRLGSUHVFULSWLRQIRUFKURQLFSDLQZLWK
GRFXPHQWDWLRQWKDWD3'03ZDVFKHFNHGSULRUWRSUHVFULELQJ
7KHSHUFHQWDJHRISDWLHQWVZLWKDQHZRSLRLGSUHVFULSWLRQIRUFKURQLFSDLQZLWK kk
GRFXPHQWDWLRQWKDWDXULQHGUXJWHVWZDVSHUIRUPHGSULRUWRSUHVFULELQJ
7KHSHUFHQWDJHRISDWLHQWVZLWKDIROORZXSYLVLWZLWKLQIRXUZHHNVRIVWDUWLQJDQRSLRLG k
IRUFKURQLFSDLQ
7KHSHUFHQWDJHRISDWLHQWVZLWKDQHZRSLRLGSUHVFULSWLRQIRUDFXWHSDLQIRUDWKUHHGD\V¶ kk
VXSSO\RUOHVV
/RQJWHUPRSLRLGWKHUDS\
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRDUHWDNLQJ00(VRU
kk
PRUHSHUGD\
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRDUHWDNLQJ00(VRU
kk
PRUHSHUGD\
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRUHFHLYHGDSUHVFULSWLRQIRUD
kk
EHQ]RGLD]HSLQH
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRKDGDIROORZXSYLVLWDWOHDVW
k
TXDUWHUO\
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRKDGDWOHDVWTXDUWHUO\SDLQ
k
DQGIXQFWLRQDODVVHVVPHQWV
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRKDGGRFXPHQWDWLRQWKDWD
3'03ZDVFKHFNHGDWOHDVWTXDUWHUO\
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRWKHFOLQLFLDQFRXQVHOHGRQ
WKHULVNVDQGEHQHILWVRIRSLRLGVDWOHDVWDQQXDOO\
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZLWKGRFXPHQWDWLRQWKDWDXULQH
k
GUXJWHVWZDVSHUIRUPHGDWOHDVWDQQXDOO\
7KHSHUFHQWDJHRISDWLHQWVZLWKFKURQLFSDLQZKRKDGDWOHDVWRQHUHIHUUDORUYLVLWIRU
k
QRQSKDUPDFRORJLFWKHUDS\DVDWUHDWPHQWIRUSDLQ
7KHSHUFHQWDJHRISDWLHQWVRQORQJWHUPRSLRLGWKHUDS\ZKRZHUHFRXQVHOHGRQWKH
SXUSRVHDQGXVHRIQDOR[RQHDQGHLWKHUSUHVFULEHGRUUHIHUUHGWRREWDLQQDOR[RQH
7KHSHUFHQWDJHRISDWLHQWVZLWKDQRSLRLGXVHGLVRUGHU28'ZKRZHUHUHIHUUHGWRRU
k
SUHVFULEHGPHGLFDWLRQDVVLVWHGWUHDWPHQW0$7
,PSDFWRI5(06&RPSOLDQW&( -XO\
$33(1',;%7+(,49,$5:'35(6&5,37,21&/$,06'$7$%$6(
7KH,49,$5:'3UHVFULSWLRQ&ODLPVGDWDEDVHKDVLQIRUPDWLRQRQDSSUR[LPDWHO\RISUHVFULSWLRQFODLPV
LQWKH8QLWHG6WDWHVFRYHULQJUHWDLOPDLODQGORQJWHUPFDUHIDFLOLWLHV,49,$XSGDWHVWKH3UHVFULSWLRQ&ODLPV
GDWDEDVHZLWKDSSUR[LPDWHO\IRXUELOOLRQSDLGFODLPVSHU\HDU'DWDDUHDYDLODEOHIURPWRWKHSUHVHQW
)URPHDFKRIWKHRXWOHWVLQLWVSDQHOWKHGDWDEDVHFDSWXUHGDOOILOOVERWKLQSHUVRQDQGWKURXJKWKHPDLOERWK
SDLGE\LQVXUDQFHDQGSDLGHQWLUHO\E\WKHFRQVXPHU5:'3UHVFULSWLRQ&ODLPVGLVWLQJXLVKHVXQLTXH
SKDUPDFLHVXQLTXHSUHVFULEHUVDQGXQLTXHPHGLFDOSUDFWLFHVDQGFDQFDSWXUHUHFRUGVJHQHUDWHGE\SDWLHQWV
ZKRILOOHGSUHVFULSWLRQVLQPRUHWKDQRQHVWDWH3UHVFULEHU1DWLRQDO3URYLGHU,GHQWLILHU13,QXPEHUVDUH
DYDLODEOHIRUWKHSUHVFULEHUDVVRFLDWHGZLWKHDFKSUHVFULSWLRQFODLP3UHVFULSWLRQFODLPVDUHORQJLWXGLQDOO\
OLQNHGWRDQDQRQ\PRXVSDWLHQWWRNHQDQGVRFDQEHOLQNHGWRHYHQWVZLWKLQWKHGDWDVHWLWVHOIDQGDFURVVRWKHU
,49,$SDWLHQWGDWDDVVHWV
,PSDFWRI5(06&RPSOLDQW&( -XO\
$33(1',;&'2&725$1'3+$50$&<6+233,1*
23&3056WXG\GHYHORSHGDQHPSLULFDOPHDVXUHRIGRFWRUDQGSKDUPDF\VKRSSLQJIRURSLRLGVVHH
UHIHUHQFH6LPSOHFRXQWVRIGLVSHQVLQJVWKDWGHULYHGVLPXOWDQHRXVO\IURPGLIIHUHQWSKDUPDFLHVDQG
GLIIHUHQWSUHVFULEHUVSURYHGWKHEHVWGLVFULPLQDWRURISRVVLEOHDEHUUDQWEHKDYLRULQRSLRLGUHFLSLHQWVDV
FRPSDUHGWRDFRQWUROJURXSRISHUVRQVILOOLQJSUHVFULSWLRQVIRUGLXUHWLFV7KHFDWHJRULHVDUHGHILQHGE\WKH
QXPEHURISUHVFULEHUSUDFWLFHVLWHVIURPZKLFKRSLRLGSUHVFULSWLRQVZHUHREWDLQHGLQWKHPRQWK
REVHUYDWLRQSHULRGDQGWKHQXPEHURISKDUPDF\RXWOHWVWKDWILOOHGWKHSUHVFULSWLRQV7DEOH&$SSOLHGWR
SHUVRQVZKRKDGUHFHLYHGWZRRUPRUHRSLRLGGLVSHQVLQJVRYHUPRQWKVDGHILQLWLRQWKDW
VXEVWLWXWHGSUHVFULEHUVIRUSUHVFULELQJSUDFWLFHV\LHOGHGDOPRVWWKHVDPHFODVVLILFDWLRQDVWKHSUDFWLFHGULYHQ
GHILQLWLRQ
7DEOH& 'HILQLWLRQVRIOHYHOVRIGRFWRUDQGSKDUPDF\VKRSSLQJRYHU
PRQWKVRIIROORZXS
/HYHO 'HILQLWLRQ
1RQH 1RFRQWULEXWRU\GLVSHQVLQJV25SUDFWLFHVDQGRXWOHWV
0LQLPDO SUDFWLFHV$1'!RXWOHWV25RXWOHWV$1'!SUDFWLFHV
0RGHUDWH SUDFWLFHV$1'RXWOHWV25SUDFWLFHV$1'RURXWOHWV
25SUDFWLFHVDQGRXWOHWV
([WHQVLYH SUDFWLFHV$1'RXWOHWV25SUDFWLFHV$1'RXWOHWV
25SUDFWLFHV$1'RXWOHWV
,PSDFWRI5(06&RPSOLDQW&( -XO\
$33(1',;'&20321(1762)$86+($/7+,1685$1&(&/$,06'$7$%$6(
7UDQVDFWLRQVFDQEHOLQNHGWRRQHDQRWKHUDQGWRLQGLYLGXDOVWKURXJKVKDUHGLGHQWLILFDWLRQQXPEHUVZKLFKDUH
HQFU\SWHGZKHQWKHGDWDLVXVHGIRUUHVHDUFKSXUSRVHV
3RSXODWLRQGHVFULSWRUV(OLJLELOLW\ILOHVSURYLGHGDWHVRIHQUROOPHQWDQGH[LWIURPFRYHUDJHDQGEDVLF
GHPRJUDSKLFLQIRUPDWLRQ7KHVHILOHVDOVRKDYHSHUVRQDOLGHQWLI\LQJLQIRUPDWLRQWKDWFDQEHXVHG
ZLWKDSSURSULDWHSHUPLVVLRQIRUOLQNDJHWRH[WHUQDOGDWDVRXUFHV
'UXJH[SRVXUHV&ODLPVIRUUHLPEXUVHPHQWRIDOOGUXJVGLVSHQVHGLQFOXGHGDWHRIGLVSHQVLQJWKH
QDPHGRVHDQGIRUPRIWKHSURGXFWGLVSHQVHGDQGWKHTXDQWLW\GLVSHQVHG
+HDOWK2XWFRPHV+RVSLWDOVDQGKHDOWKFDUHFHQWHUVXVHWKH86&HQWHUIRU0HGLFDUHDQG0HGLFDLG
6HUYLFHV&06IRUPZKHQVXEPLWWLQJELOOVWR0HGLFDUHDQGWKLUGSDUW\SD\HUV5HOHYDQWILHOGV
RQWKH&06DUHSDWLHQWDQGSURYLGHULGHQWLILHUVSDWLHQWFKDUDFWHULVWLFVGDWHVRIVHUYLFHD
SULQFLSDODQGRWKHUGLVFKDUJHGLDJQRVHVFRGHVSURFHGXUHVDGPLVVLRQGLDJQRVLVDQGGLVFKDUJHVWDWXV
7\SLFDOO\IDFLOLW\FODLPVGRQRWLQFOXGHPHGLFDWLRQVGLVSHQVHGLQKRVSLWDO
REMS Program Companies
Opioid Analgesic REMS
Twelve-Month FDA Assessment Report FINAL
V 1.0
1
RKT Consulting
CE: Pain Management and Opioid Prescribing
TABLE OF -CONTENTS
LIST OF TABLES ............................................................................................................................................................................... 3
1. INTRODUCTION....................................................................................................................................................................... 4
1.1 OVERVIEW ............................................................................................................................................................................ 4
1.2 METHODOLOGY .................................................................................................................................................................... 4
1.2.1 DETERMINING STATE CE REQUIREMENTS ............................................................................................................................ 4
1.2.2 ASCERTAINING ESTIMATES OF ANNUAL LICENSED PRESCRIBERS......................................................................................... 5
1.2.3 HEALTH SYSTEMS REQUIRING OPIOID OR PAIN MANAGEMENT CE...................................................................................... 5
1.2.4 DETERMINING ADEQUACY OF REMS CE TO MEET CE REQUIREMENTS ............................................................................... 5
1.2.5 ADDITIONAL DATA ON AVAILABLE CE PROGRAMS .............................................................................................................. 5
2. STATE CONTINUING EDUCATION REQUIREMENTS ................................................................................................... 6
2.1 MEDICAL DOCTORS AND DOCTORS OF OSTEOPATHY ........................................................................................................... 6
2.2 PHYSICIAN ASSISTANTS ........................................................................................................................................................ 7
2.3 PODIATRISTS ......................................................................................................................................................................... 8
2.4 NATUROPATHIC PHYSICIANS ................................................................................................................................................ 9
2.5 NURSES ................................................................................................................................................................................. 9
2.6 DENTISTS .............................................................................................................................................................................. 9
2.7 OPTOMETRISTS ................................................................................................................................................................... 10
2.8 PHARMACISTS ..................................................................................................................................................................... 10
3. LARGE SYSTEM CONTINUING EDUCATION REQUIREMENTS ............................................................................... 12
4. SUFFICIENCY OF REMS EDUCATION PROGRAMS..................................................................................................... 14
5. ADDITIONAL CONTINUING EDUCATION PROGRAMS AVAILABLE ..................................................................... 17
APPENDIX A: “NUMBER OF AFFECTED PRESCRIBERS” LEGEND FOR APPENDICES B-I ....................................... 18
APPENDIX B: STATE PAIN AND OPIOID CE REQUIREMENTS-MEDICAL DOCTORS AND DOCTORS OF
OSTEOPATHY.................................................................................................................................................................................. 19
APPENDIX C: STATE PAIN AND OPIOID CE REQUIREMENTS-PHYSICIAN ASSISTANTS......................................... 29
APPENDIX D: STATE PAIN AND OPIOID CE REQUIREMENTS-PODIATRISTS ............................................................. 35
APPENDIX E: STATE PAIN AND OPIOID CE REQUIREMENTS-NATUROPATHS .......................................................... 40
APPENDIX F: STATE PAIN AND OPIOID CE REQUIREMENTS-NURSES ......................................................................... 42
APPENDIX G: STATE PAIN AND OPIOID CE REQUIREMENTS-DENTISTS .................................................................... 49
APPENDIX H: STATE PAIN AND OPIOID CE REQUIREMENTS-OPTOMETRISTS ........................................................ 53
APPENDIX I: STATE PAIN AND OPIOID CE REQUIREMENTS-PHARMACISTS ............................................................ 56
APPENDIX J: SUFFICIENCY OF REMS EDUCATION, BY STATE ...................................................................................... 59
APPENDIX K: CONTINUING EDUCATION PROGRAMS....................................................................................................... 64
2
RKT Consulting
CE: Pain Management and Opioid Prescribing
LIST OF TABLES
Table 1: Number of States in Which Standard REMS CE is Sufficient to Meet State Requirements......................... 16
3
RKT Consulting
CE: Pain Management and Opioid Prescribing
1. INTRODUCTION
1.1 Overview
In July 2012, the United States Food and Drug Administration (FDA) approved the initial Extended-Release
(ER) and Long-Acting (LA) Opioid Analgesics Risk Evaluation and Mitigation Strategy (REMS) to ensure
that the benefits of ER and LA opioid analgesics used in the outpatient setting outweigh the risks. In
September 2018, FDA released its updated Opioid Analgesic REMS Education Blueprint for Health Care
Providers Involved in the Treatment and Monitoring of Patients with Pain.
“For the year prior to the assessment period through the assessment period, provide an evaluation of
the overall pain/opioid CE landscape including but not limited to:
1. States requiring prescribers, pharmacists or nurses to complete opioid or pain management
continuing education for licensing/renewal of licensing:
a. Enumeration of these states and their requirements for continuing education on either
pain or safe opioid use;
b. estimates of annual licensed prescribers in those states;
c. which, if any, opioid analgesic or ER/LA Opioid Analgesics REMS CE were
permissible in which states, for prescribers to meet requirements;
2. Health systems, including government (DOD, VA, IHS, etc.), that require opioid or pain
management continuing education; include number of completers if available; and
3. Any additional available data on continuing education programs available during this time
with a focus on pharmacological pain management or safe opioid use”
The assessment period referenced above extends from September 18, 2018 through July 17, 2019.
The Opioid Analgesic REMS Program’s Metrics Subteam contracted with RKT Consulting, LLC, to carry out
the research needed to meet this FDA request. Presented in this report are the results of that research.
1.2 Methodology
1.2.1 Determining State CE Requirements
To determine each state’s CE requirements, both in general and focused on pain management and safe opioid
use, websites for the relevant licensing boards were accessed. Links to information for licensees about CE
requirements were followed, as well as links to relevant sections of the state’s statutes and regulations.
Additionally, websites for national organizations representing the professions covered by the FDA request
were reviewed, along with websites of independent CE providers whose posted information included lists of
state CE requirements. In some cases, it was necessary to conduct additional internet searches focused on
“controlled substance”, “opioid”, or “pain management” CE requirements. This redundant process revealed a
number of cases in which the states’ websites were not current and the follow-up process enabled the research
team to have a high degree of confidence in the findings presented below. If a requirement needed
clarification, the research team contacted the relevant licensing board.
4
RKT Consulting
CE: Pain Management and Opioid Prescribing
Requirements for general CE were recorded, and exact language regarding the pain management/opioid CE
requirements was copied and pasted into the report appendices.
1.2.2 Ascertaining Estimates of Annual Licensed Prescribers
Several sources were used to estimate the current number of licensed prescribers, nurses, and pharmacists:
• Each state’s licensing board websites for each profession were reviewed for links to this information
• If the website did not contain information about the number of licensees, a telephone call and email
contact was placed to the licensing board
• In many instances, licensing boards did not have this information readily available and required
considerable time to produce the result.
• When unable to obtain the necessary information from the licensing board, the consultants accessed
the United States Department of Labor's Bureau of Labor Statistics’ Occupational Employment
Statistics query system. This resource provided the number of employed professionals in each state, as
opposed to the number of licensed professionals, but was considered the most accurate available
estimate of the number of affected licensees
In some states, not all licensees are required to complete pain management/opioid CE. However, it was rare
that licensing boards could provide information on what proportion of their licensees met the criteria
obligating them to complete the CE requirements of interest. Superscripts defined in Appendix A are used in
Appendices B through I to indicate any factors affecting the accuracy of the estimates provided.
1.2.3 Health Systems Requiring Opioid or Pain Management CE
Section 3 of this report describes efforts undertaken to determine if large health systems have relevant CE
requirements for their prescriber, nurse, or pharmacist employees.
1.2.4 Determining Adequacy of REMS CE to Meet CE Requirements
The methodology used to determine if completing a REMS-compliant CE program would enable a licensee to
meet the state’s CE requirements is described at the beginning of Section 4 of this report.
1.2.5 Additional Data on Available CE Programs
Efforts undertaken to identify additional available CE programs are described in detail in Section 5 of this
report.
5
RKT Consulting
CE: Pain Management and Opioid Prescribing
6
RKT Consulting
CE: Pain Management and Opioid Prescribing
care, and addiction prior to each biennial license renewal. Eight separate topic areas must be included
in the pain management CE.
• New Mexico has instituted a series of requirements that are very similar across all prescribing
professions. The requirements for MDs and DOs are a good example of what is found for most other
professions. MDs and DOs are required to complete five hours of CE every two years, covering a
range of topics including a review of the medical board’s rules regarding pain management.
• Oregon is another state with similar requirements spanning a number of professions. Each MD and
DO must complete a 1-hour pain management CE course provided by the Oregon Pain Management
Commission, plus an additional six hours of CE in the subjects of pain management or the treatment of
terminally ill and dying patients. Note that this is a one-time requirement only.
• Similarly, Rhode Island has implemented identical mandatory CE across several professions. MDs,
DOs, and other prescribers in the state have a one-time requirement to complete eight hours of CE on
topics such as appropriate prescribing for pain, pharmacology, dependence potential, and alternatives
to opioids for pain management. Those who have taken DATA 2000 training to prescribe
buprenorphine are exempt from the eight-hour requirement.
2.2 Physician Assistants
Physician assistants (PAs) are required by thirty-four states to complete CE related to pain management,
substance use disorder, or safe opioid prescribing. One additional state imposes a requirement for completion
of pharmacology-specific CEs, although there is no specification that such education must involve opioid
analgesics or any other controlled substance.
Details of state requirements may be found in Appendix C.
Highlights of these CE requirements include the following:
• Twenty-five states require 3.5 hours or less of pain- and opioid-related CE for each renewal period.
• Alabama requires holders of its state Controlled Substances Certificate to complete a 12-hour program
approved by the Board of Medicine. After completing this program, physician assistants are required
to complete four hours of CE every two years as part of their license renewal requirements.
• Arkansas has a complex requirement that includes five hours related to pain management for PAs
prescribing hydrocodone-containing medications and three hours of prescribing education related to
pain treatment for all PAs, every two years.
• Kentucky requires 4.5 hours every three years, related to use of the state’s PDMP, pain management,
addiction disorders, or some combination of these topics.
• Massachusetts imposes a requirement only for PAs prescribing controlled substances. Those
individuals need four CE credits every two years, with topics coming from a lengthy list related to
pain management and safe opioid use.
• Mississippi’s standard for PAs is one of the most stringent for any profession, anywhere in the
country. PAs are required to complete ten hours of CE related to prescribing medications every year,
with “an emphasis on controlled substances”. It should be noted that this requirement only applies to
PAs authorized to prescribe controlled substances.
• New Mexico has instituted a series of requirements that are very similar across all prescribing
professions. The requirements for PAs are a good example of what is found for most other professions.
PAs are required to complete five hours of CE every two years, covering a range of topics including a
review of the medical board’s rules regarding pain management.
• New York has no general CE requirement for PAs. However, all prescribers in the state with a DEA
registration, as well as medical residents who prescribe controlled substances under a facility DEA
registration, must complete at least three hours of CE in pain management, palliative care, and
7
RKT Consulting
CE: Pain Management and Opioid Prescribing
addiction prior to each biennial license renewal. Eight separate topic areas must be included in the pain
management CE.
• Ohio’s requirement is unique among PAs, in that the licensing board requires 12 pharmacology-
specific CE credits, over and above the basic requirement of 100 hours every two years, in order to
renew a Certificate to Prescribe. Although this requirement does not specifically tie to pain
management or opioid therapy, it is nonetheless included here because completion of an opioid
analgesic REMS CE program would help meet the requirement.
• Oregon is another state with similar requirements spanning a number of professions. Each PA must
complete a 1-hour pain management CE course provided by the Oregon Pain Management
Commission, plus an additional six hours of CE in the subjects of pain management or the treatment of
terminally ill and dying patients. Note that this is a one-time requirement only.
• Pennsylvania has legislated an initial requirement for four board-approved CE hours, consisting of two
hours in pain management or the identification of addiction, and two hours in the practices of
prescribing or dispensing of opioids. Following completion of this initial requirement, for each
subsequent renewal of the license, a PA must complete two hours of CE on pain management,
identification of addiction, or prescribing practices.
• Similarly, Rhode Island has implemented identical mandatory CE across several professions. PAs and
other prescribers there have a one-time requirement to complete eight hours of CE on topics such as
appropriate prescribing for pain, pharmacology, dependence potential, and alternatives to opioids for
pain management. Those who have taken DATA 2000 training to prescribe buprenorphine are exempt
from the eight-hour requirement.
• South Carolina imposes no general CE requirement for PAs to renew their licenses, but those who
prescribe controlled substances are mandated to complete four hours of CE every two years related to
approved procedures of prescribing and monitoring controlled substances in Schedules II, III, and IV.
• Texas requires completion of ten hours of CE related to pain management, but only for PAs employed
in registered pain management clinics.
2.3 Podiatrists
Doctors of podiatric medicine are required to obtain pain management/opioid use disorder/safe opioid use CE
in twenty-nine states.
Details of these requirements may be found in Appendix D.
An overview of these requirements identifies:
• Twenty-four states require three or fewer hours of pain- and opioid-related CE for each renewal
period.
• Michigan requires five hours of CE in pain and symptom management for each license renewal period.
• Mississippi requires five hours of CE for each two-year renewal cycle, related to controlled substance
prescribing, but only for podiatrists holding a current DEA registration.
• Oregon requires completion of seven hours of CE, including one hour of CE consisting of a program
provided by the Oregon Pain Management Commission.
• Texas requires ten hours of CE related to pain management, but only for providers employed by a
registered pain management clinic. There is no requirement for providers employed elsewhere.
• Utah requires 3.5 hours of CE every two years. The content of this education must include all elements
of the FDA blueprint for the ER/LA Opioid REMS program.
• Including the states mentioned above, five states permit some podiatrists to be exempt from these CE
requirements. The criteria for exemption vary from state to state.
8
RKT Consulting
CE: Pain Management and Opioid Prescribing
including opioid analgesics. Of these, four states have CE requirements related to pain management,
substance use disorder, and/or safe opioid prescribing.
9
RKT Consulting
CE: Pain Management and Opioid Prescribing
hydrocodone products.
• West Virginia limits its CE requirement to optometrists who have prescribed, administered, or
dispensed controlled substances during the previous two years. Licensees who certify that they have
not prescribed, administered, or dispensed controlled substances during the entire preceding two-year
period are exempt from the requirement.
2.8 Pharmacists
Although pharmacists in some states may play a role in prescribing through collaborative practice agreements,
most of their work related to pain management and safe opioid use involves accurately dispensing
medications pursuant to a legal and appropriate prescription, in accordance with the “corresponding
responsibility” language found in the federal Controlled Substances Act. Additionally, pharmacists may
counsel patients for whom opioids are prescribed about safe use, secure storage, and appropriate disposal.
Given their important role, states are beginning to establish pain management/opioid CE requirements for
pharmacists
State CE requirements for pharmacists, related to safe opioid use or pain management, can be found in
Appendix I.
A summary of the findings follows:
• Fourteen states and the District of Columbia have pharmacist CE requirements related to pain
management and/or opioid use.
10
RKT Consulting
CE: Pain Management and Opioid Prescribing
• Only three of these requirements are for more than three hours of CE every renewal period:
- Mississippi requires five hours of CE each year, related to opioid abuse and prevention of some
other drug of abuse or addiction-related issue.
- Oregon has a one-time requirement to complete seven CE hours within 24 months of the licensee’s
first license renewal; one hour must be the module from the Oregon Pain Management
Commission.
- Pennsylvania requires four hours of Board-approved education consisting of two hours in pain
management or the identification of addiction and two hours in the practices of prescribing or
dispensing of opioids, every two years.
• Although the required topics are relatively evenly divided, there is a slight preference for CE focused
on preventing, detecting, and treating opioid misuse, abuse, and addiction, over a focus on pain
management.
11
RKT Consulting
CE: Pain Management and Opioid Prescribing
12
RKT Consulting
CE: Pain Management and Opioid Prescribing
identified points of contact, using email addresses and webforms from the websites and LinkedIn’s messaging
function, requesting information related to pain management or opioid CE requirements for employees of the
systems.
Of the 13 systems, only Trinity Health responded. The contact at Trinity Health reported that the system has
established a requirement for two hours of accredited CE related to pain management and/or safe opioid use
for all opioid prescribers, as well as a one-hour requirement for nurses and pharmacists. Additionally, all staff
must adhere to CE requirements established by their respective licensing boards. The Trinity Health contact
indicated that tracking completion of this educational requirement is challenging; each institution typically
carries it out, and there is no central reporting mechanism in place.
13
RKT Consulting
CE: Pain Management and Opioid Prescribing
Note that this assessment does not evaluate time-based aspects of the states’ requirements, as CE programs
based on the 2018 REMS Blueprint could vary in length.
The two reviewers reconciled their findings, and then discussed and resolved any inconsistent determinations.
A summary of findings shows that some form of pain/opioid CE is required in nearly every state for at least
one discipline, and very often across most licensed disciplines within a state.
Only four states require no pain/opioid CE of any kind: Colorado, Kansas, Missouri, and South Dakota.
Of the 47 jurisdictions that do require pain/opioid CE, the most common reasons that a state requirement
would not be fulfilled by a standard REMS CE program are that the state requires:
• Information on federal and state law and regulations
• Dosage level and duration of prescribing recommendations
• Diversion training
• Prescription drug monitoring program education
• Palliative care and/or end-of-life and/or discipline-specific education
14
RKT Consulting
CE: Pain Management and Opioid Prescribing
15
RKT Consulting
CE: Pain Management and Opioid Prescribing
Optometrist
Of the 18 states with optometrist CE requirements related to pain/opioids, standard REMS CE would totally
fulfill the requirement in 15 states, partially fulfill the requirement in one state, and fail to fulfill the
requirement in two states.
Pharmacist
Of the 15 states with pharmacist CE requirements related to pain/opioids, standard REMS CE would totally
fulfill the requirement in eight states, partially fulfill the requirement in two states, and fail to fulfill the
requirement in five states.
Table 1: Number of States in Which Standard REMS CE is Sufficient to Meet State Requirements
Requirements Met Requirements Partially Met Requirements Not Met No Requirements
MD/DO 26 10 4 12
Physician Assistant 23 10 2 16
Podiatrist 22 4 3 22
Naturopath 1 2 1 47
Nurse 35 5 6 5
Dentist 21 6 5 19
Optometrist 15 1 2 33
Pharmacist 8 2 5 36
16
RKT Consulting
CE: Pain Management and Opioid Prescribing
17
RKT Consulting
CE: Pain Management and Opioid Prescribing
18
RKT Consulting
CE: Pain Management and Opioid Prescribing
Appendix B: State Pain and Opioid CE Requirements-Medical Doctors and Doctors of Osteopathy
19
RKT Consulting
CE: Pain Management and Opioid Prescribing
20
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
years, but 40 credits must be AOA1-A or renewal date or within 4 years, whichever comes
AOA1-B. first. The 12 CMEs may be divided in any way that
is relevant to the physician's specialty and practice
setting. The Medical Board will accept any
combination of the two topics totaling 12 hours.
For physicians and surgeons licensed on or after 01
January 2019, the course must include the subject
of risks of addiction associated with the use of
Schedule II drugs. As an alternative to the above
12-hour requirement, a physician or surgeon may
complete a one-time continuing education course
of 12 CMEs in the subjects of treatment and
management of opiate-dependent patients,
including 8 hours of training in buprenorphine
treatment, or other similar medicinal treatment, for
opioid use disorders.
Connecticut 50 CMEs (AMA PRA Category 1, AOA, During the first renewal period and not less than 17,418
etc.) every 2 years. One CME means a every six years thereafter, there is a 1-hour “risk MD
minimum of 50 minutes of continuing management” requirement. This requirement can
education activity. Continuing medical be fulfilled with a CME on prescribing controlled
education shall be in an area of the substances and pain management. CME shall be in 808
physician’s practice. an area of the physician’s practice. DO
Florida 40 AMA PRA Category 1 CMEs every 2 2 hours of AMA Category 1 or AOA Category 1-A 78,050
Medical years CMEs on prescribing controlled substances, every
2 years
Florida 40 CMEs every 2 years 2 hours of AMA Category 1 or AOA Category 1-A 8,644
Osteopathic CMEs on prescribing controlled substances, every
2 years
Georgia 40 AMA PRA Category 1 CMEs every 2 Every physician not subject to Rule 360-15-.01(3) 15,110 1,6,8,9
years who maintains an active DEA certificate and
prescribes controlled substances, except those
holding a residency training permit, shall complete
at least one time 3 or more hours of AMA/AOA
PRA Category 1 CME that is designed specifically
to address controlled substance prescribing
practices. The controlled substance prescribing
CME shall include instruction on controlled
substance prescribing guidelines, recognizing signs
of the abuse or misuse of controlled substances,
and controlled substance prescribing for chronic
pain management. The certification of such
completion must occur at the first renewal
following January 1, 2018 or the first renewal
following licensure. Completion of this
requirement may count as three hours toward the
CME requirement for license renewal. Rule 360-
15-.01(3) states: “Physicians who do not hold a
certification in pain management or palliative
medicine, and whose opioid pain management
patients comprise 50% or more of the patient
population must demonstrate competence by
biennially obtaining 20 (twenty) hours of
21
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
continuing medical education (“CME”) pertaining
to pain management or palliative medicine.”
Illinois 150 CMEs every 3 years, 60 of which Beginning in 2020, 3 CMEs on safe opioid 23,250 9
must be AMA PRA Category 1 prescribing practices offered or accredited by a
professional association, state government agency,
or federal agency every licensing period
Indiana No CME requirement for MDs and DOs, Beginning in 2019, 2 CMEs addressing the topic of 14,700 9
except for new requirement for opioids opioid prescribing and opioid abuse every licensing
period
Iowa 40 AMA PRA Category 1 CMEs every 2 CMEs in Chronic Pain Management every 5 5,560 9
two years years
Kentucky 60 CMEs every 3 years. Of the 60 CMEs, Minimum of 4.5 hours of HB1 (House Bill 1) 6,060 9
30 must be AMA PRA Category 1 or approved CMEs for physicians authorized to
AOA Category 1 by an organization prescribe or dispense controlled substances every
accredited by the Accreditation Council licensing period. The education must relate to the
on Continuing Medical Education or the use of KASPER, pain management, addiction
AOA Council on Continuing Medical disorders, or a combination of two or more of those
Education. subjects. The requirement may be met with one,
4.5 hour course or multiple courses totaling 4.5
hours.
Louisiana 20 AMA PRA Category 1 CMEs every One time requirement: Effective 01 January 2018, 17,664
year as a condition to license renewal, all practitioner MD
licensed to prescribe controlled substances are
required to obtain CMEs pertaining to drug
diversion training, best practices regarding 563
prescribing of controlled substances, appropriate DO
treatment of addiction, and any other matters
pertaining to the prescribing of controlled
substances that are deemed appropriate by the
board.
Maine 100 CMEs every 2 years. For MDs, 40 Effective 31 December 2017, 3 CMEs of opioid 3,840 2,9
CMEs must be AMA Category 1. For prescribing required every 2 years for all clinicians
DOs, 40 CMEs must be AOA Category 1. who prescribe opioids. 3 CMEs of any Category 1
All must be Category 1 if an osteopathic AMA approved program on the prescribing of
specialist. opioids suffice.
Maryland 50 AMA PRA Category 1 CMEs every 2 1 CME every 2 years on opioid prescribing 37,853
years MD
1,764
DO
Massachusetts 100 CMEs every 2 years. Of that 100, 40 10 CMEs on Risk Management (Minimum of 4, 27,340 9
must be AMA PRA Category 1 or AOA. Category 1 CMEs); 3 CMEs on opioid education
and pain management for renewals. Risk
management study must include instruction in
medical malpractice prevention such as risk
identification, patient safety, and loss prevention. It
may include courses in medical ethics, quality
assurance, medical-legal issues, patient relations,
non-economic aspects of practice management, or
22
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
courses designed to reduce the likelihood of
medical malpractice through means other than
increasing the licensee's medical education and
technical competence. Risk management study also
includes review of the Board's Patient Care
Assessment regulations (243 CMR 3.01-3.16) and
participation on designated peer review committees
dealing with quality assurance. Effective 01
February 2012, physicians applying to renew a
license or obtain a new license must complete at
least 3 CMEs in pain management and opioid
education. The requirement applies to all
physicians who prescribe controlled substances
(Schedules I through VI). According to state
regulations, such education includes training in
effective pain management, identification of
patients at high risk for substance abuse,
counseling patients about side effects, and the
addictive nature and proper storage and disposal of
prescription drugs. These CEUs will qualify as
either Category 1 or Category 2, and may be
counted as risk management credits.
Michigan 150 CMEs every 3 years. Of those, a 3 CME (of the 150) must be earned in the area of 34,559
Medical minimum of 75 must be AMA PRA pain and symptom management
Category 1
Michigan 150 CMEs every 3 years; 60 must be 3 CME (of the 150) must be earned in the area of 8,281
Osteopathic Category 1 pain and symptom management
Minnesota 75 AMA PRA Category 1 CMEs every 3 Effective 01 January 2020, licensees with the 15,438 7
years authority to prescribe controlled substances must
obtain at least 2 CMEs on best practices in
prescribing opioids and controlled substances,
including nonpharmacological and implantable
device alternatives for treatment of pain and
ongoing pain management, as part of the
continuing education requirements for licensure
renewal.
Mississippi 40 AMA PRA Category 1 CMEs every 2 5 CME related to prescribing medications, with 3,330 9
years emphasis on controlled substances required for
licensees with active DEA certificates
Nebraska 50 AMA PRA Category 1 CMEs every 2 Effective 01 October 2018, 3 hours every 2 years 9,500 1
years regarding prescribing opiates. This may include MD
education regarding prescribing and administering
opiates, risks and indicators regarding opiate
addiction development and emergency opiate 1,328 1
situations. 1/2 hour of the 3 shall cover the PDMP. DO
Nevada 40 AMA PRA Category 1 CMEs every 2 2 CME relating specifically to the misuse and 4,050 9
years for MDs. 35 AMA PRA Category 1 abuse of controlled substances, the prescribing of
(or AOA 1-A) CMEs every year (10 must opioids or addiction during each period of
be AOA 1-A) for DOs. licensure.
23
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
New 100 CMEs every 2 years. 40 must be 3 opioid CMEs for physicians with a DEA license 7,496
Hampshire AMA PRA Category 1. every 2 years. This requirement is not waived for
anyone (even if his or her other CME requirements
are waived). There is an approval process for this
education.
New Jersey 100 CMEs every 2 years. 40 must be Effective with 2019 and subsequent renewals, for 22,800 9
AMA PRA Category 1. all prescribers, 1 CME concerning prescription
opioid drugs, including responsible prescribing
practices, alternatives to opioids for managing and
treating pain, and the risks and signs of opioid
abuse, addiction, and diversion.
New Mexico 75 AMA PRA Category 1 CMEs every 2 5 CME in pain management. Appropriate courses 3,300 9
Medical years should include a review of NM Medical Board
Rule 16.10.14 NMAC on pain management; an
understanding of the pharmacology and risks of
controlled substances, a basic awareness of the
problems of abuse, addiction and diversion, and
awareness of state and federal regulations for the
prescription of controlled substances.
New Mexico 75 Category 1 CMEs every 2 years 6 CME in pain management. Appropriate courses 654
Osteopathic should include a review of 16.17.5 NMAC,
management of the treatment of pain, an
understanding of the pharmacology and risks of
controlled substances, a basic awareness of the
problems of abuse, addiction and diversion, and
awareness of state and federal regulations for the
prescription of controlled substances.
New York No general CME requirement. All prescribers licensed to treat humans who have a 59,140 9
DEA registration to prescribe controlled
substances, as well as medical residents who
prescribe controlled substances under a facility
DEA registration, must complete at least 3 hours of
course work or training in pain management,
palliative care, and addiction. The following 8
topic areas must be included: New York State and
federal requirements for prescribing controlled
substances; pain management; appropriate
prescribing; managing acute pain; palliative
medicine; prevention, screening, and signs of
addiction; responses to abuse and addiction; end of
life care.
North 60 Category 1 CMEs that are “relevant to Every physician who prescribes controlled 19,180 1,9
Carolina the physician's current or intended substances, except those with residency status,
specialty or area of practice” every 3 shall complete at least 3 Category 1 CMEs (counts
years toward the overall 60) that are specifically
designed to address controlled substance
prescribing practices. The course shall include
instruction on controlled substances prescribing
practices, recognizing signs of the abuse or misuse
of controlled substances, and controlled substance
prescribing for chronic pain management.
24
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
Ohio 100 CMEs every 2 years. 40 must be Each physician owner of a pain management clinic 30,400 5,9
AMA PRA Category 1. shall complete at least 20 hours of category I
CMRs in pain medicine every 2 years, to include
one or more courses addressing the potential for
addiction. The courses completed in compliance
with this rule shall be accepted toward meeting the
Category I requirement for certificate of
registration renewal for the physician.
Oklahoma For MD, 60 AMA PRA Category 1 CMEs For MDs, 1 CME in pain management or 1 CME in 6,070 9
every 3 years; for DOs, 16 AOA 1-A or B opioid use or addiction each year preceding
CMEs every year. renewal of a license, if holding a DEA registration.
For DOs, 1 CME every other year on prescribing,
dispensing, and administering controlled
substances.
Oregon 60 AMA PRA Category 1 CMEs every 2 Within the first year of licensure, licensees must 13,113
years. CMEs must be relevant to the complete CMEs on pain management. A 1-hour MD
provider's current practice. course provided by the Oregon Pain Management
Commission is required plus at least 6 more CMEs
in pain management or the treatment of terminally 1,382
ill and dying patients. Those 6 CMEs may be made DO
up of any combination of CME coursework
focusing on pain management and/or treatment of
terminally ill and dying patients. This is a one-time
requirement, but licensees may choose to obtain
additional hours on these topics throughout their
careers. The topic of pain management is legally
considered relevant for all licensees, regardless of
their specialty.
Pennsylvania 100 CMEs every 2 years. At least 20 of 4 Board-approved CMEs consisting of 2 CMEs in 48,463
Medical the 100 CMEs must be AMA PRA pain management or the identification of addiction
Category 1. and 2 CMEs in the practices of prescribing or
dispensing of opioids; subsequent renewals require
2 CMEs on pain management, identification of
addiction, or prescribing practices.
Pennsylvania 100 CMEs every 2 years. At least 20 of 4 Board-approved CMEs consisting of 2 CMEs in Not
Osteopathic the 100 CMEs must be Category 1. pain management or the identification of addiction available
and 2 CMEs in the practices of prescribing or
dispensing of opioids; subsequent renewals require
2 CMEs on pain management, identification of
addiction, or prescribing practices.
Rhode Island 40 AMA PRA Category 1 (or AOA 1-A) 8 CMEs on topics such as: appropriate prescribing 5,019
CMEs every 2 years for pain, pharmacology, potential for dependence, MD
and alternatives to opioids for pain management.
Those who have taken DATA 2000 training to
prescribe buprenorphine will be exempt from the 8- 400
hour continuing education requirement. Training DO
must be completed at least once per career and
must occur before the next renewal of your
controlled substance registration in June of 2018.
South 40 AMA PRA Category 1 CMEs every 2 2 CMEs related to approved procedures of 22,000 5,6
Carolina years. At least thirty CMEs must be prescribing and monitoring controlled substances
25
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
related directly to the licensee's practice listed in Schedules II, III, and IV for all licensees.
area. Further, at least 30 of the general CMEs must be
related directly to the licensee's practice area, so
pain specialists need 30+ pain-related CMEs.
Tennessee For MDs, 40 hours AMA PRA Category 2 CMEs that must include instruction in: the 9,900 8,9
1 CMEs every 2 years. For DOs, 40 hours Department's treatment guidelines on opioids,
AOA 1A or 2A CMEs every 2 years. benzodiazepines, barbiturates, and carisoprodol;
topics such as medicine addiction, risk
management tools, and other topics approved by
the Board. Providers of intractable pain treatment
must have specialized CMEs in pain management.
If you do not have a DEA registration and do not
prescribe, at least 2 of the 40 required hours shall
be in a course or courses designated specifically to
address prescribing practices.
Medical doctors and osteopathic physicians who
are board certified by the American Board of
Medical Specialties, American Osteopathic
Association or the American Board of Physician
Specialties in 1 or more of the following specialties
or subspecialties do not have to complete the 2
CME on controlled substance prescribing: Pain
management, Anesthesiology, Physical medicine
and rehabilitation, Neurology, or Rheumatology.
Texas 48 CMEs every 2 years. Per Board rule 195.4(e), the medical director of a 45,250 5,9
Of the 48, at least 24 must be pain management clinic must, on an annual basis,
AMA/PRA/ACCME/AOA courses. ensure that all personnel (including the medical
director) are properly licensed, and if applicable,
trained to include 10 CMEs related to pain
management. This CME requirement applies to all
personnel providing medical services to the
patients (including, but not limited to: PAs, x-ray
techs, phlebotomists, RNs, MAs, etc.).
Utah Medical 40 CMEs every 2 years. 34 CMEs must 3.5 CMEs every 2 years on controlled substance 5,620 9
be AMA PRA Category 1. 6 CMEs may prescribing. The 3.5 CMEs shall include: the scope
be from Division of Occupational and of the controlled substance abuse problem in Utah
Professional Licensing. and the nation; all elements of the FDA Blueprint
for Prescriber Education under the FDA's
Extended-Release and Long-Acting Opioid
Analgesics Risk Evaluation and Mitigation
Strategy, as published 09 July 2012, or as it may be
subsequently revised; the national and Utah-
specific resources available to prescribers to assist
in appropriate controlled substance and opioid
prescribing; patient record documentation for
controlled substance and opioid prescribing; and
office policies, procedures, and implementation.
Utah 40 CMEs every 2 years. 34 CMEs must 3.5 CMEs every 2 years on controlled substance 1,183
Osteopathic be AMA PRA Category 1. 6 CMEs may prescribing. The 3.5 CMEs shall include: the scope
be from Division of Occupational and of the controlled substance abuse problem in Utah
Professional Licensing. and the nation; all elements of the FDA Blueprint
for Prescriber Education under the FDA's
26
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
Extended-Release and Long-Acting Opioid
Analgesics Risk Evaluation and Mitigation
Strategy, as published 09 July 2012, or as it may be
subsequently revised; the national and Utah-
specific resources available to prescribers to assist
in appropriate controlled substance and opioid
prescribing; patient record documentation for
controlled substance and opioid prescribing; and
office policies, procedures, and implementation.
Vermont 30 AMA PRA Category 1 CMEs every 2 1 CME every licensing period for all licensees shall 3,739 2,6
Medical years be on the topic of hospice care, palliative care, or
pain management services, or a combination of
these. One additional CME on the appropriate use
of opioids, including the use of complementary and
alternative therapies instead of opioid controlled
substances to treat chronic pain is required by
licensees who prescribe or are likely to prescribe
opioid controlled substances, as determined by the
Board, every licensing period.
Vermont 30 CMEs every 2 years; a minimum of 12 2 hours of continuing education for each full 260
Osteopathic CMEs must be osteopathic medical licensing period on the topics of: the abuse and
education diversion, safe use, and appropriate storage and
disposal of controlled substances; the appropriate
use of the Vermont Prescription Monitoring
System; risk assessment for abuse or addiction;
pharmacological and nonpharmacological
alternatives to opioids for managing pain;
medication tapering and cessation of the use of
controlled substances; and, relevant State and
federal laws and regulations concerning the
prescription of opioid controlled substance.
Virginia 60 CMEs every 2 years. At least 30 must 2 CME related to pain management, proper 44,844
be AMA PRA Category 1. prescribing of controlled substances, and the
diagnosis and management of addiction every 2
years.
Washington For MDs, 200 CMEs every 4 years, at For MDs: WSMA's one-hour webinar, “Preparing 12,470 9
least 120 must be Category 1 credits for New State Opioid Prescribing Rules”, fulfills
(AMA PRA Category 1). For DOs, 150 the state CMEs on opioid prescribing. This activity
CMEs every 3 years, at least 60 must be has been approved for AMA PRA Category 1
Category 1 (AMA PRA Category 1 Credit. Also, allopathic physician and PA
accepted). prescribers should note that simply reading the new
rules will meet the new state requirement for opioid
continuing medical education.
For DOs: In order to prescribe an opioid in
Washington state, an osteopathic physician
licensed to prescribe opioids shall complete a one-
time CME regarding best practices in the
prescribing of opioids and the current opioid
prescribing rules in this chapter. The continuing
education must be at least one hour in length. WAC
246-853-685
27
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Affected
State Boards Total CME Hours (CMEs) Required Pain and Opioid CME Requirements Prescribers
West Virginia For MDs, 50 AMA PRA Category 1 Pain specialists need to have 30 pain-related CMEs 3,220 5,6,9
CMEs every 2 years, 30 of which must be every 2 years. Further, for all providers, unless they
related to the provider's area or areas of have completed and timely provided to the Board a
specialty. For DOs, 32 CMEs every 2 Board-developed certification form and waiver
years, 16 of which must be AOA 1-A or request attesting that he or she has not prescribed,
1B. administered, or dispensed a controlled substance
during the entire previous reporting period, every
physician as a prerequisite to license renewal shall
complete a minimum of 3 CMEs of drug diversion
training and best practice prescribing of controlled
substances training during the previous reporting
period, of which 3 such CMEs may be provided
only by a Board-approved program
Wisconsin 30 AMA PRA Category 1 or AOA 2 CMEs on the Wisconsin Medical Examining 10,170 9
Category 1 CMEs every 2 years Board Opioid Prescribing Guideline during the
2016-2017 and 2018-2019 CME cycles
28
RKT Consulting
CE: Pain Management and Opioid Prescribing
29
RKT Consulting
CE: Pain Management and Opioid Prescribing
30
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
Indiana 100 CEs every 2 years Effective 01 July 2019, pursuant to Senate Enrolled Act 225- 1,550 9
2018, a practitioner, licensed by a board and applying for
registration or re-registration to distribute or dispense a
controlled substance, must have completed 2 CEs during the
previous 2 years addressing the topic of opioid prescribing and
opioid abuse.
Iowa 100 AMA PRA Category 1 A licensee who has prescribed opioids to a patient during the 1,000 3
CEs every two years renewal cycle shall complete a minimum of 2 CEs regarding the
guidelines for prescribing opioids for chronic pain, as issued by
the Centers for Disease Control and Prevention of the United
States Department of Health and Human Services, including
recommendations on limitations on dosages and the length of
prescriptions, risk factors for abuse, and nonopioid and
nonpharmacologic therapy options, as a condition of license
renewal. These CEs may count toward the 100 CEs required for
license renewal. The licensee shall maintain documentation of
these hours, which may be subject to audit.
Kentucky 60 CEs every 3 years. Of the Minimum of 4.5 CEs of HB1 (House Bill 1) approved CEs for 1,070 9
60 CEs required, 30 must be physicians authorized to prescribe or dispense controlled
AMA PRA Category 1 or substances. The education must relate to the use of KASPER
AOA Category 1 by an (their prescription monitoring program), pain management,
organization accredited by addiction disorders, or a combination of two or more of those
the Accreditation Council on subjects. The requirement may be met with one 4.5 CE course
Continuing Medical or multiple courses totaling 4.5 CEs.
Education or the AOA
Council on Continuing
Medical Education.
Louisiana 100 CEs every 2 years Practitioners with a Controlled Dangerous Substance (CDS) 1,291
license are required to complete at least 3 Board-approved CEs
on the best practices for the prescribing of CDS, drug diversion
training, appropriate treatment for addiction, and the treatment
of chronic pain.
Maine 100 CEs every 2 years Effective 31 December 2017, 3 CEs of opioid prescribing 720 2,9
required every 2 years for all clinicians that prescribe opioids. 3
CEs of any Category 1 AMA approved program on the
prescribing of opioids will suffice
Maryland 50 CEs every 2 years or One-time requirement for 2 CEs if holding a CDS registration, 7,268
maintenance of NCCPA starting 01 October 2018. Must relate to prescribing or
certification dispensing controlled substances. Must be recognized by the
provider's professional board or accredited by ACCME.
Massachusetts 100 CEs every 2 years, 40 of If prescribing controlled substances, must complete 4 CEs in the 3,720 1,9
which must be Category 1 following topics: effective pain management; the risks of abuse
and addiction associated with opioid medication; identification
of patients at risk for substance use disorders; counseling
patients about the side effects, addictive nature and proper
storage and disposal of prescription medications; appropriate
prescription quantities for prescription medications that have an
increased risk of abuse; and opioid antagonists, overdose
prevention treatments and instances in which a patient may be
advised on both the use of and ways to access opioid antagonists
and overdose prevention treatments.
31
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
Minnesota 50 AMA PRA Category 1 Effective 01 January 2020, licensees with the authority to 1,980 9
CEs every 2 years or prescribe controlled substances must obtain at least 2 CEs on
maintenance of NCCPA best practices in prescribing opioids and controlled substances,
certification including nonpharmacological and implantable device
alternatives for treatment of pain and ongoing pain
management, as part of the continuing education requirements
for licensure renewal.
Mississippi 50 CEs annually. Of the 50 10 CEs of AMA, AOA, or AAPA Category 1 CEs related to 200 9
CEs required, 20 must be prescribing medications, with emphasis on controlled
AMA PRA Category 1. substances, required for PA authorized to prescribe controlled
NCCPA certification waives substances.
requirement
Nebraska 50 CEs of ACCME, AOA, or Effective 01 October 2018, 3 hours every 2 years regarding 1,454 2
AAPA Category 1 CEs every prescribing opiates. This may include education regarding
2 years, or maintenance of prescribing and administering opiates, risks and indicators
NCCPA certification regarding opiate addiction development and emergency opiate
situations. 1/2 hour of the 3 shall cover the PDMP
Nevada 40 AMA PRA Category 1 2 CEs relating specifically to the misuse and abuse of controlled 650 9
CEs every 2 years. substances, the prescribing of opioids, or addiction during each
period of licensure.
New Must maintain NCCPA All prescribers required to register with the program who 889
Hampshire certification possess a U.S. Drug Enforcement Administration (DEA) license
number shall complete 3 CEs of free, appropriate prescriber's
regulatory board-approved online continuing education or pass
an online examination, in the area of pain management and
addiction disorder or a combination, as a condition for license
renewal.
New Jersey 50 CEs every 2 years; must Effective with 2019 and subsequent renewals, for all 2,810 9
be Category 1 AMA, AAPA, prescribers, 1 CE concerning prescription opioid drugs,
AOA, or ACCME including responsible prescribing practices, alternatives to
opioids for managing and treating pain, and the risks and signs
of opioid abuse, addiction, and diversion.
New Mexico Must maintain NCCPA 5 CEs in pain management. Appropriate CEs should include: a 680 9
certification review of NM Medical Board Rule 16.10.14 NMAC on pain
management; an understanding of the pharmacology and risks
of controlled substances; a basic awareness of the problems of
abuse, addiction, and diversion; and awareness of state and
federal regulations for the prescription of controlled substances.
New York No general CE requirement; All prescribers licensed to treat humans who have a DEA 12,060 9
see Pain/Opioid CE. registration to prescribe controlled substances, as well as
medical residents who prescribe controlled substances under a
facility DEA registration, must complete at least 3 CEs in pain
management, palliative care, and addiction. The following 8
topic areas MUST be included: New York State and federal
requirements for prescribing controlled substances; pain
management; appropriate prescribing; managing acute pain;
palliative medicine; prevention, screening, and signs of
addiction; responses to abuse and addiction; and end of life care.
All 8 topics must be completed prior to attestation; the topics
can be completed in a single presentation or in individual
segments for a total of at least 3 hours. The coursework may be
32
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
live, online, or obtained from a publication or journal. There is
no minimum amount of time that must be spent on each of the
eight topics. The CE does not have to be pre-approved, as
prescribers merely complete an attestation saying that they
completed the appropriate work.
North 50 CEs of AAPA Category 1 Beginning 01 July 2017, 2 hours of CEs specifically designed to 5,010 9
Carolina CE every 2 years; active address controlled substance prescribing practices. The CEs
NCCPA certification waives shall include instruction on controlled substances prescribing
requirement; NCCPA practices, recognizing signs of the abuse or misuse of controlled
certification waives this substances, and controlled substance prescribing for chronic
requirement, but not the pain management.
controlled substance
requirement
Ohio 100 CEs every 2 years + 12 12 pharmacology-specific CEs over and above the required 100 4,430 9
pharmacology every 2 years CEs in order to renew a Certificate to Prescribe.
plus NCCPA certification
Oklahoma 20 CEs annually 1 CE each year shall be concerning the topic of substance abuse 1,390 9
Oregon 60 CEs of AMA, APMA, Within the first licensure year, licensees must complete CEs on 2,152
AAPA, or AOA Category 1 pain management. A 1-hour course provided by the Oregon Pain
or AOA Category 1A or 2A Management Commission is required plus at least 6 more CEs
every 2 years in the subjects of pain management or the treatment of
terminally ill and dying patients. This is a 1-time requirement,
but licensees may choose to obtain additional hours on these
topics throughout their careers. Furthermore, the topic of pain
management is legally considered relevant for all licensees,
regardless of their specialty.
Pennsylvania Must hold current NCCPA 4 Board-approved CEs consisting of 2 CEs in pain management 8,832
certification. or the identification of addiction and 2 CEs in the practices of
prescribing or dispensing of opioids; subsequent renewals
require 2 CEs on pain management, identification of addiction,
or prescribing practices.
Rhode Island 20 CEs every 2 years 8 CEs on topics such as: appropriate prescribing for pain, 588
pharmacology, dependence, potential, and alternatives to
opioids for pain management. Those who have taken DATA
2000 training to prescribe buprenorphine will be exempt from
the 8 CEs. Training must be completed at least once per career
and must occur before the next renewal of your controlled
substance registration in June of 2018.
South No requirement, except as 4 CEs every 2 years related to approved procedures of 1,430 9
Carolina noted for those prescribing prescribing and monitoring controlled substances in Schedules
controlled substances II, III, and IV.
Tennessee 100 CEs every 2 years 2 CEs related to controlled substance prescribing, which must 2,010 9
include instruction in the Department’s treatment guidelines
(i.e., Tennessee Chronic Pain Guidelines) on opioids,
benzodiazepines, barbiturates, and carisoprodol and may include
topics such as medicine addiction, risk management tools, and
other topics approved by the PA Committee.
Texas 40 CEs every 2 years Per Board rule 195.4(e), the medical director of a pain 7,930 5,9
management clinic must, on an annual basis, ensure that all
personnel (including the medical director) are properly licensed,
33
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
and if applicable, trained to include 10 CEs related to pain
management. This CE requirement applies to all personnel
providing medical services to the patients (including, but not
limited to: PAs, x-ray techs, phlebotomists, RNs, MAs, etc.).
Utah 40 CEs every 2 years; 3.5 CEs every 2 years on controlled substance prescribing. The 1,090 9
NCCPA certification waives 3.5 CEs shall include: the scope of the controlled substance
requirement abuse problem in Utah and the nation; all elements of the FDA
Blueprint for Prescriber Education under the FDA's Extended-
Release and Long-Acting Opioid Analgesics Risk Evaluation
and Mitigation Strategy, published 09 July 2012, or as it may be
revised; the national and Utah-specific resources available to
prescribers to assist in appropriate controlled substance and
opioid prescribing; patient record documentation for controlled
substance and opioid prescribing; and office policies,
procedures, and implementation.
Vermont 100 CEs every 2 years, 50 of 2 CEs on controlled substances prescribing. The activity must 425
which must be Category 1; be accredited as AMA PRA Category 1 CEs or American
NCCPA certification waives Academy of Physician Assistants Category 1 training. Required
this requirement topics include: abuse and diversion, safe use, and appropriate
storage and disposal of controlled substances; appropriate use of
the Vermont Prescription Monitoring System; risk assessment
for abuse or addiction; pharmacological and
nonpharmacological alternatives to opioids for managing pain;
medication tapering and cessation of the use of controlled
substances; and, relevant State and federal laws and regulations
concerning the prescription of opioid controlled substance. Each
licensee who is registered with the D.E.A. and who holds a
D.E.A. number to prescribe controlled substances, or who has
submitted a pending application for one, is presumed to
prescribe controlled substances and must meet this requirement.
Virginia Must maintain NCCPA 2 AMA/PRA Category 1 CEs related to pain management, 3,958
certification proper prescribing of controlled substances, and the diagnosis
and management of addiction every 2 years. There is no
exemption from this CE requirement for doctors of medicine,
osteopathy, podiatry, physician assistants, and nurse
practitioners who hold active licenses.
Washington 100 CEs every 2 years. A If the practitioner prescribes opioids in Washington, they must 2,470 2,9
minimum of 40 CEs must be complete a CE. The course is one-time for at least one hour. It
Category 1. NCCPA must be completed by the end of your first full CE reporting
certification waives this period after 01 January 2019. WSMA's one-hour webinar,
requirement “Preparing for New State Opioid Prescribing Rules”, fulfills the
new state requirement for CE on opioid prescribing. This
activity has been approved for AMA PRA Category 1 Credit.
Also, allopathic physician and PA prescribers should note that
simply reading the new rules will meet the new state
requirement for opioid continuing medical education.
West Virginia 100 CEs every 2 years; at A physician assistant who has prescribed, administered, or 770 1,9
least 50 must be Category 1 dispensed any controlled substance pursuant to a West Virginia
license during the reporting period shall complete a Board-
approved CE activity for a minimum of 3 hours of drug
diversion training and best practice prescribing of controlled
substances training.
34
RKT Consulting
CE: Pain Management and Opioid Prescribing
35
RKT Consulting
CE: Pain Management and Opioid Prescribing
36
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
addictive nature, and proper storage and disposal of
prescription medicines.
Michigan 150 CEs every 3 years 5 CEs in pain and symptom management in each renewal 806
period pursuant to section 16204(2), MCL 333.16204(2), of
the code. Courses in pain and symptom management may
include, but are not limited to, courses in: behavior
management, pharmacology, behavior modification, stress
management, clinical applications, and drug interventions as
they relate to professional practice.
Minnesota 40 CEs every 2 years Effective 01 January 2020: Licensees with the authority to 250
prescribe controlled substances must obtain at least 2 CEs on
best practices in prescribing opioids and controlled substances,
including nonpharmacological and implantable device
alternatives for treatment of pain and ongoing pain
management, as part of the continuing education requirements
for licensure renewal.
Mississippi 40 CEs every 2 years If the podiatrist has a current DEA certificate, 5 CEs must be 96
in the prescribing of controlled substances.
Nebraska 48 CEs every 2 years Effective 01 October 2018, 3 CEs every 2 years regarding 109 1
prescribing opiates. This may include education regarding
prescribing and administering opiates, risks and indicators
regarding development of addiction to opiates, and emergency
opiate situations. 1/2 hour of the 3 shall cover the PDMP.
Nevada 50 CEs every 2 years Each holder of a license to practice podiatry who is registered 148 4
to dispense controlled substances pursuant to NRS 453.231
shall complete at least 2 CEs relating specifically to the misuse
and abuse of controlled substances, the prescribing of opioids
or addiction during each period of licensure.
New Jersey 100 CEs every 2 years Effective with 2019 and subsequent renewals, for all 1,220
prescribers, 1 CE concerning prescription opioid drugs,
including responsible prescribing practices, alternatives to
opioids for managing and treating pain, and the risks and signs
of opioid abuse, addiction, and diversion.
New Mexico 16 CEs annually 2 CEs in appropriate courses: an understanding of the 369
pharmacology and risks on controlled substances; a basic
awareness of the problems of abuse, addiction and diversion;
awareness of state and federal regulations for the prescription
of controlled substances; and management of the treatment of
pain. Courses may also include a review of this rule (16.21.9
NMAC).
New York 50 CEs every 3 years All podiatrists (and any other person licensed under Title 8) 2,448
who have a DEA registration number and all residents
prescribing with a facility DEA registration number will be
required to take 3 CEs approved by the DOH in pain
management, palliative care and addiction.
North 25 CEs annually At least 1 CE consists of a course designed specifically to 415
Carolina address prescribing practices. The course shall include, but not
be limited to, instruction on controlled substance prescribing
practices and controlled substance prescribing for chronic pain
management.
37
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
Oregon 60 CEs every 2 years By 2009 or within the first year of licensure, licensees must 173
complete CEs on pain management. The requirements and
exemptions are detailed in OAR 847-008-0075. 1 CE provided
by the Oregon Pain Management Commission is required plus
at least 6 CEs in the subjects of pain management or the
treatment of terminally ill and dying patients.
Pennsylvania 50 CEs every 2 years 2 CEs in pain management, the identification of addiction, or 1,602
the practices of prescribing or dispensing of opioids.
South 24 CEs every 2 years If a podiatrist is authorized pursuant to state and federal law to 200
Carolina prescribe controlled substances, 2 of the requisite biennial CEs
must be related to approved procedures of prescribing and
monitoring controlled substances listed in Schedules II, III,
and IV of the schedules provided for in Sections 44-53-210,
44-53-230, and 44-53-250.
Tennessee 15 CEs annually 1 of the 15 required CEs shall, every other calendar year, be a 230
course designed specifically to address prescribing practices
Texas 50 CEs every 2 years Per Board rule 195.4(e), the medical director of a pain 1,152 5
management clinic must, on an annual basis, ensure that all
personnel (including the medical director) are properly
licensed, and if applicable, trained, to include 10 hours of
continuing medical education related to pain management.
This requirement applies to all personnel providing medical
services to the patients (including, but not limited to: PAs, x-
ray techs, phlebotomists, RNs, MAs, etc.).
Utah 40 CEs every 2 years 3.5 CEs every 2 years on controlled substance prescribing. The 244
3.5 CEs shall include: the scope of the controlled substance
abuse problem in Utah and the nation; all elements of the FDA
Blueprint for Prescriber Education under the FDA's Extended-
Release and Long-Acting Opioid Analgesics Risk Evaluation
and Mitigation Strategy, as published 09 July 2012, or as it
may be subsequently revised; the national and Utah-specific
resources available to prescribers to assist in appropriate
controlled substance and opioid prescribing; patient record
documentation for controlled substance and opioid prescribing;
and office policies, procedures, and implementation.
Vermont 30 CEs every 2 years All podiatry licensees who prescribe controlled substances 35
shall certify at the time of each renewal that they have
completed at least 2 CE activities on controlled substances
prescribing. The CE must be accredited as AMA PRA
Category 1 Credit training or Council on Podiatric Medical
Education approved training. The following topics must be
covered, as required by Vermont law: abuse and diversion,
safe use, and appropriate storage and disposal of controlled
substances; the appropriate use of the Vermont Prescription
Monitoring System; risk assessment for abuse or addiction;
pharmacological and nonpharmacological alternatives to
opioids for managing pain; medication tapering and cessation
of the use of controlled substances; and relevant State and
federal laws and regulations concerning the prescription of
opioid controlled substances. Each licensee who is registered
with the U.S. Drug Enforcement Agency (D.E.A.) and who
38
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
holds a D.E.A. number to prescribe controlled substances, or
who has submitted a pending application for one, is presumed
to prescribe controlled substances and must meet this
requirement. Any podiatrist who is required to certify
completion of this CE to renew, but who cannot, will be
subject to the provisions regarding makeup of missing CE in
22.3 and 22.4.
Virginia 60 CEs every 2 years Every 2 years, licensees with prescriptive authority must 543
complete 2 CEs in pain management, proper prescribing of
controlled substances, and the diagnosis and management of
addiction.
West Virginia 50 CEs every 2 years Unless a podiatrist has completed and timely provided to the 115 1
Board a Board-developed certification waiver form attesting
that he or she has not prescribed, administered, or dispensed a
controlled substance during the entire previous reporting
period, every podiatrist as a prerequisite to license renewal
shall complete a minimum of 3 CEs of drug diversion training
and best practice prescribing of controlled substances training
during the previous reporting period. The 3 CEs shall be part
of the 50 total hours of continuing education required and not
3 additional hours.
Wisconsin 50 CEs every 2 years 2 of the 50 podiatric CEs required under sub.(1) shall be an 384
educational course or program related to opioid prescribing;
only required if podiatrist holds DEA registration
39
RKT Consulting
CE: Pain Management and Opioid Prescribing
40
RKT Consulting
CE: Pain Management and Opioid Prescribing
41
RKT Consulting
CE: Pain Management and Opioid Prescribing
42
RKT Consulting
CE: Pain Management and Opioid Prescribing
43
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
District of 24 CEs every 2 years APRNs must complete 15 CEs related to pharmacology (of the 24 840 9
Columbia required hours)
Florida 24 CEs (or National 3 CEs of Safe and Effective Prescription of Controlled Substances 31,183
Certification) every 2 years for APRNs each licensing period. (Must be offered by a statewide
professional association of physicians in this state accredited to
provide educational activities designated for the American
Medical Association Physician’s Recognition Award Category 1
credit, the American Nurses Credentialing Center, the American
Association of Nurse Anesthetists, or the American Association of
Nurse Practitioners and may be offered in a distance-learning
format.)
Hawaii 30 CEs every 2 years For APRN with prescriptive authority, 8 contact hours in 410 4,9
pharmacology related to clinical practice specialty area and
approved by a Board-recognized certifying body each licensing
period.
Idaho 30 CEs every 2 years For APRN with prescriptive authority, 10 contact hours in 750 9
pharmacology for license renewal. All new initial applicants must
provide documentation of 30 hours of pharmacotherapeutic
coursework (either formal academic education or CE).
Illinois 20 CEs for RN and LPN; APRNs shall obtain, each 2-year licensing period, no less than 20 5,540 9
80 CEs for APN every 2 CEUs of pharmacotherapeutics, including 10 hours of opioid
years prescribing or substance abuse education.
Indiana 0 hours for RNs; 30 hours APRNs with prescriptive authority must include 8 hours in 7,560
for APRNs every year pharmacology. Effective 01 July 2019, a practitioner who is
licensed by a board and applies for controlled substance
registration or re-registration must have completed 2 hours of
CEUs during the previous 2 years addressing the topic of opioid
prescribing and opioid abuse.
Iowa 36 CEs for RN or LPN; For ARPN who prescribed opioids to a patient during the renewal 4,869 3
National Certification for cycle: a minimum of 2 CEs regarding the CDC guideline for
APRN every 3 years prescribing opioids for chronic pain (at each renewal).
Kentucky 14 CEs or National 5 contact hours of approved pharmacology CEs must be earned by 3,572 6
Certification every 1 year all APRNs each licensure period. CE certificates should reflect
specific pharmacology contact hours awarded. For APRNs with
prescriptive authority for controlled substance, of the 5 approved
pharmacology contact hours required for renewal, 1.5 of approved
contact hours must be on the use of KASPER, pain management,
or addiction disorders each licensure period. These hours may
count as part of the required 5 pharmacology hours.
Louisiana For RN, 5-15 CEs Each year an APRN with prescriptive authority shall obtain 6 3,322 4
(depending on hours spent contact hours of CEs in pharmacotherapeutics in their advanced
practicing); for APRNs nursing role and population foci.
whose role and population
focus does not provide for
certification/recertification,
30 contact hours related to
advanced practice nursing
every 1 year
44
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
Maine 0 CEs for RN and LPN; 75 15 contact hours of CEs in pharmacology every two years 1,240 9
CEs for APRN every 2
years
Maryland 0 CEs for RNs; National 1-time requirement for 2 hours if holding a CDS registration, 3,710 4,9
Certification for APRN starting 01 October 2018. Must relate to prescribing or dispensing
every 2 years of controlled substances. Must be recognized by the provider's
professional board or accredited by ACCME.
Massachusetts 15 CEs for RN and LPN; To apply for prescriptive authority from MA Controlled Substance 6,200 1,9
National Certification for Registration (MCSR) and to renew APRN authorization every 2
APRN every 2 years years, all prescribers must complete education relative to: effective
pain management; risks of abuse and addiction associated with
opioid medication; identification of patients at risk for substance
use disorders; counseling patients about the side effects, addictive
nature and proper storage and disposal of prescription
medications; appropriate prescription quantities for prescription
medications that have an increased risk of abuse; and, opioid
antagonists, overdose prevention treatments and instances in
which a patient may be advised on both the use of and ways to
access opioid antagonists and overdose prevention treatments.
M.G.L. c. 94C s.18 (e) does not specify a minimum number of
contact hours to comply with this education requirement.
Michigan 25 CEs for RNs; National Each licensing period, every nurse (both with and without 22,596
Certification for APRN prescriptive authority) must complete at least two 2 CE in pain and APRN
every 2 years symptom management, in courses or programs approved by the
Board. These count toward the 25 CE requirement.
155,436
RN
Minnesota 24 CEs for RN; 12 CEs for Effective 01 January 2020: Licensees with the authority to 7,780
LPN; National prescribe controlled substances obtain at least 2 CEs on best
Certification for APRN practices in prescribing opioids and controlled substances,
every 2 years including nonpharmacological and implantable device alternatives
for treatment of pain and ongoing pain management, as part of the
CE requirements for licensure renewal.
Mississippi 0 CEs for RN; 40 CEs for For APRNs, 2 of the 40 CEs must be related to the prescribing of 6,703
APRN every 2 years controlled substances.
Montana 24 CEs every 2 years For APRNs with prescriptive authority, 12 (of the 24) CEs must be 640 4,9
in the area of pharmacotherapeutics.
Nebraska 20 CEs for RN and LPN; 10 CEs related to pharmacology for APRN-NP. Effective 01 2,288 6
40 CEs for APRN-NP October 2018, 3 CEs every 2 years regarding prescribing opiates.
/every 2 years This may include education regarding prescribing and
administering opiates, risks and indicators regarding development
of addiction to opiates, and emergency opiate situations. 1/2 hour
of the 3 shall cover the PDMP.
Nevada 30 CEs for RNs; 45 CEs APRNs that have dispensing or prescribing privileges must 710 4,9
for APRNs every 2 years complete 2 CEs related to the use and misuse of controlled
substances also within each renewal period.
New 30 CEs for RN and LPN; For all APRNs, 5 CEs must be related to pharmacology. For 1,140 6,9
Hampshire 30 additional CEs (60 APRNs with an active DEA number for prescribing, 3 of the 5
total) related to specialty
for APRN every 2 years
45
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
(For APRN, current CEs must address opioid prescribing, pain management, or
certification in specialty substance abuse disorder.
will meet requirements for
30 CEs for RN licensure)
New Jersey 30 CEs for RN and LPN; All professional nurses, practical nurses, and certified nurse 4,000
National Certification for midwives: 1 CE each licensing period related to prescription
APN every 2 years opioid drugs, including alternatives to opioids for managing and
treating pain, and the risks and signs of opioid abuse, addiction,
and diversion. Advanced Practice Nurses: 6 CEs in pharmacology
related to controlled substances, including pharmacologic therapy,
addiction prevention and management, and issues concerning
prescription opioid drugs, including responsible prescribing
practices, alternatives to opioids for managing and treating pain,
and the risks and signs of opioid abuse, addiction, and diversion.
New Mexico 30 CEs for RN and LPN; 15 CEs related to pharmacology for all APRNs each licensing 980 6,9
50 CEs for APRN every 2 period. For APRNs with DEA registration and prescriptive
years authority, 5 of 15 pharmacology hours must be related to
management of non-cancer or chronic pain.
New York 0 CEs for RN; National All NY practitioners with a DEA registration number to prescribe 13,710 9
Certification for APRN controlled substances are required to complete at least 3 CEs of
every 2 years course work or training in pain management, palliative care, and
addiction by 01 July 2017, and once every 3 years thereafter.
North 15-30 CEs for RNs For those Nurse Practitioners who prescribe controlled substances, 4,760 1,9
Carolina (depending on other at least 1 CE (of the 50) shall address controlled substance
activities) every 2 years. prescribing practices, signs of the abuse or misuse of controlled
50 CEs for APRNs substances, and controlled substance prescribing for chronic pain
(depending on other management.
activities) every 2 years.
North Dakota 12 CEs every 2 years, plus 15 CEs related to pharmacology for APRN with prescriptive 1,183
National Certification for authority (fulfills the 12 CE renewal requirement)
APRN
Ohio 24 CEs for RNs; 48 CEs For an APRN-CNP, APRN-CNS, or APRN-CNM, at least 12 of 16,760
(36 for those with National the total required CEs must include CE in advanced
Certification) for APRNs pharmacology.
Oklahoma RNs must meet 1 of 5 15 contact hours or 1 academic credit hour related to 1,590 4,9
options for license pharmacology for CNP, CNM, CNS with prescriptive authority
renewal. One option is 24 each licensing period.
CEs every 2 years.
National Certification for
APRNs.
Oregon National certification for 1-time requirement of 7 CEs related to pain management for RN, 5,559
APRN. If not certified, LPN, and APRN (1 hour must be a course to be provided by the APRN
then 45 CEs every 2 years; Oregon Pain Management Commission. The remaining six hours
for CNS who isn't can be nurse's choice of pain management topics.). Of the 45 hours
64,093
certified, 40 CEs every 2 required for an APRN, 15 must be focused on
RN
years. pharmacotherapeutic content.
5,728
LPN
46
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
Pennsylvania 30 CEs for RN, CNS, and 16 CEs related to pharmacology for CRNP with Prescriptive 7,280 4,9
CRNP every 2 years Authority each licensing period. CRNPs with prescriptive
authority approval must complete a one-time requirement of 2 CE
in pain management, the identification of addiction and 2 CE in
the practices of prescribing or dispensing of opioids.
Rhode Island 10 CEs for RN and LPN; 2 of the 10 CEs required must be about substance abuse. 13,320 9
National Certification for
APRN every 2 years
South 0 CEs every 2 years for APRNs with prescriptive authority will need 45 contact hours of 2,260 4,9
Carolina APRN, plus National pharmacotherapeutics at initial licensure (15 of which must be in
Certification. controlled substance pharmacology for NPs wishing to prescribe
these drugs).
Tennessee 0 CEs every 2 years for 2 CEs designed specifically to address controlled substance 7,010 4,9
APRN, plus National prescribing practices including the Tennessee Chronic Pain
Certification. Guidelines.
Texas 20 CES every 2 years or Per Board rule 195.4(e), the medical director of a pain 12,020 5,6,9
National Certification. management clinic must, on an annual basis, ensure that all
personnel (including the medical director) are properly licensed,
and if applicable, trained to include 10 hours of continuing
medical education (CE) related to pain management. This CE
requirement applies to all personnel providing medical services to
the patients (including, but not limited to: PAs, x-ray techs,
phlebotomists, RNs, MAs, etc.). Furthermore, Advance Practice
Nurses (APNs) are required to complete CE within their advanced
specialty area and role recognized by the BON. APNs with limited
prescriptive authority must also complete an additional five
contact hours in pharmacotherapeutics. APRNs that have
prescriptive authority and prescribe controlled substances must
complete at least 3 additional contact hours of continuing
education related to prescribing controlled substances.
Utah 30 CEs, or 200 practice 3.5 CEs every 2 years on controlled substance prescribing. The 3.5 2,158 7
hours and 15 CEs, or 400 CEs shall include: the scope of the controlled substance abuse
practice hours every 2 problem in Utah and the nation; all elements of the FDA Blueprint
years for Prescriber Education under the FDA's Extended-Release and
Long-Acting Opioid Analgesics Risk Evaluation and Mitigation
Strategy, as published 09 July 2012, or as it may be subsequently
revised; the national and Utah-specific resources available to
prescribers to assist in appropriate controlled substance and opioid
prescribing; patient record documentation for controlled substance
and opioid prescribing; and office policies, procedures, and
implementation.
Vermont 0 CEs every 2 years; 2 CEs for each full licensing period beginning on or after 08 June 992
National Certification for 2016 on the topics of: abuse and diversion, safe use, and
APRN appropriate storage and disposal of controlled substances;
appropriate use of the Vermont Prescription Monitoring System;
risk assessment for abuse or addiction; pharmacological and
nonpharmacological alternatives to opioids for managing pain;
medication tapering and cessation of the use of controlled
substances; and, relevant state and federal laws and regulations
concerning the prescription of opioid controlled substance.
47
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
Virginia 15 CEs and 640 practice 2 CEs related to pain management, proper prescribing of 10,038 4
hours (or 30 contact hours) controlled substances, and the diagnosis and management of
every 2 years for RN and addiction every 2 years. There is no exemption from this CE
LPN; National certification requirement for doctors of medicine, osteopathy, podiatry,
for Nurse Practitioner physician assistants, and nurse practitioners who hold active
licensed after 08 May 2002 licenses. APRNs with prescriptive authority must also have 8 CEs
(if licensed as an NP in pharmacology or pharmacotherapeutics for each biennium.
before 08 May 2002,
certification or 40 contact
hours related to specialty
area is required)
Washington 531 practice hours and 45 15 additional contact hours in pharmacotherapeutics for all 3,430 9
contact hours every 3 years ARNPs with prescriptive authority each licensing period. Under
for RN and LPN; National new law (WAC 246-840-4655), in order to prescribe an opioid, an
Certification, 30 contact ARNP licensed to prescribe opioids shall complete a 1-time
hours, and 250 continuing education requirement regarding best practices in the
independent clinical prescribing of opioids that is at least 4 hours in length. The 1-time
practice hours for ARNP continuing education requirement by the end of the first full
continuing education reporting period after 01 January 2019, or
during the first full continuing education reporting period after
initial licensure, whichever is later.
West Virginia 12 CEs per 1 year for RN; 3 CEs initially and then 1 contact hour, thereafter, annually of CE 1,080 4,9
24 CEs and 400 practice for best prescribing and drug diversion training if you prescribe,
hours every 2 years for administer or dispense controlled substances. APRNs must obtain
LPN; 24 CEs every 2 years 12 hours in pharmacotherapeutics (out of the 24 total required).
for APRNs
Wisconsin 0 CEs every 2 years Advanced Practice Nurse Prescribers: 16 contact hours per 3,030 9
biennium in clinical pharmacology or therapeutics relevant to the
area of practice, including at least 2 contact hours in responsible
prescribing of controlled substances.
Wyoming 30 hours, or 15 hours and APRNs with prescribing authority must obtain 15 CE in 568 7
200 hours of employment, pharmacology and clinical management of drug therapy or
or 400 hours of pharmacotherapeutics per biennium.
employment; In addition,
for APRN, either National
Certification, or 60 contact
hours of CEs in practice
area and 400 hours of
employment.
48
RKT Consulting
CE: Pain Management and Opioid Prescribing
49
RKT Consulting
CE: Pain Management and Opioid Prescribing
50
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
patient may be advised on both the use of and ways to access opioid
antagonists and overdose prevention treatments.
Michigan 60 CEs every 3 years 3 Board-approved CEs in pain and symptom management related to 7,943
the practice of dentistry. CEs in pain and symptom management, as
they relate to the practice of dentistry, may include, but are not
limited to: behavior management, psychology of pain, pharmacology,
behavior modification, stress management, clinical applications, and
drug interactions.
Minnesota 30 CEs every 2 years Effective 01 January 2020: Licensees with the authority to prescribe 1,800 9
controlled substances obtain at least 2 CEs on best practices in
prescribing opioids and controlled substances, including
nonpharmacological and implantable device alternatives for treatment
of pain and ongoing pain management, as part of the continuing
education requirements for licensure renewal.
Mississippi 40 CEs every 2 years 3 CEs every 2 years regarding the prescription of opioids. 1,612
Nebraska 30 CEs every 2 years Effective 01 October 2018, 3 CEs every 2 years regarding prescribing 1,584 1
opiates. This may include education regarding prescribing and
administering opiates, risks and indicators regarding development of
addiction to opiates, and emergency opiate situations. 1/2 hour of the
3 CEs shall cover the PDMP.
Nevada 20 CEs annually 2 CEs relating specifically to the misuse and abuse of controlled 1,220 9
substances, the prescribing of opioids or addiction during each
licensure period
New 40 CEs every 2 years Dentists who have a DEA number associated with New Hampshire 906
Hampshire and who prescribe Schedule II-IV controlled substances, shall
complete 3 Board-approved CEs or pass an online examination, in the
area of pain management and addiction disorder or a combination, as
a condition for initial licensure and license renewal.
New Jersey 40 CEs every 2 years Effective in 2019 and for subsequent renewals, for all prescribers, 1 3,670 9
CE concerning prescription opioid drugs, including responsible
prescribing practices, alternatives to opioids for managing and
treating pain, and the risks and signs of opioid abuse, addiction, and
diversion.
New Mexico 60 CEs every 3 years 3 CEs every 3 years. CEs must include: an understanding of the 1,510
pharmacology and risks on controlled substances; a basic awareness
of the problems of abuse, addiction and diversion; awareness of state
and federal regulations for the prescription of controlled substances;
and management of the treatment of pain
New York 60 CEs every 3 years All prescribers licensed to treat humans who have a DEA registration 18,224
to prescribe controlled substances, as well as medical residents who
prescribe controlled substances under a facility DEA registration,
must complete at least 3 CEs in pain management, palliative care, and
addiction. The following 8 topic areas must be included: New York
State and federal requirements for prescribing controlled substances;
pain management; appropriate prescribing; managing acute pain;
palliative medicine; prevention, screening, and signs of addiction;
responses to abuse and addiction; end of life care. All 8 topics must
be completed prior to attestation; the topics can be completed in a
single presentation or in individual segments for a total of at least 3
hours. CEs may be live, online, or obtained from a publication or
51
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Prescribers
journal. There is no minimum amount of time that must be spent on
each topic. The CEs do not have to be pre-approved (NY Dept. of
Health does not pre-approve individual CEs). Courses must be
accredited.
North 15 CEs annually All licensees who have a current DEA registration must complete 1 5,386
Carolina CE annually that shall include, but not be limited to, instruction on
controlled substance prescribing practice and controlled substance
prescribing for chronic pain management.
Oregon 40 CEs every 2 years All dentists licensed by the Oregon Board of Dentistry will complete 3,821
a one-time 1 CE pain management course specific to Oregon
provided by the Oregon Pain Commission of the Oregon Health
Authority.
Pennsylvania 30 CEs every 2 years 2 CEs in pain management, the identification of addiction or the 9,514
practices of prescribing or dispensing of opioids, if holding current
DEA registration or using someone else's DEA registration to
prescribe controlled substances
Rhode Island 40 CEs every 2 years 8 CEs on topics such as appropriate prescribing for pain, 635 6
pharmacology, potential for dependence, and alternatives to opioids
for pain management. One-time requirement for dentists with a
Schedule II DEA registration
Tennessee 40 CEs every 2 years 2 CEs in the area of prescribing of controlled substances education 3,992
that includes instruction in the Tennessee Chronic Pain Guidelines.
Utah 30 CEs every 2 years 3.5 CEs every 2 years on controlled substance prescribing. The 3.5 1,660 9
CEs shall include: the scope of the controlled substance abuse
problem in Utah and the nation; all elements of the FDA Blueprint for
Prescriber Education under the FDA's Extended-Release and Long-
Acting Opioid Analgesics Risk Evaluation and Mitigation Strategy, as
published 09 July 2012, or as it may be subsequently revised; the
national and Utah-specific resources available to prescribers to assist
in appropriate controlled substance and opioid prescribing; patient
record documentation for controlled substance and opioid prescribing;
and office policies, procedures, and implementation.
Vermont 30 CEs every 2 years Effective 08 June 2016: 2 CEs for each full licensing period on the 585
topics of: abuse and diversion, safe use, and appropriate storage and
disposal of controlled substances; the appropriate use of the Vermont
Prescription Monitoring System; risk assessment for abuse or
addiction; pharmacological and nonpharmacological alternatives to
opioids for managing pain; medication tapering and cessation of the
use of controlled substances; and, relevant State and federal laws and
regulations concerning prescription of opioid controlled substance.
Virginia 15 CEs annually 2 CEs on pain management 7,112
Washington 63 CEs every 3 years 3 CEs on opioid prescribing required one time 6,708
West Virginia 35 CEs every 2 years 3 CEs regarding drug diversion training and best practice prescribing 470 9
of controlled substances training and training on prescribing and
administration of an opioid antagonist every licensing period
Wisconsin 30 CEs every 2 years 2 CEs in the topic of responsible prescribing of controlled substances 1,930 9
for the treatment of acute dental pain every licensing period
52
RKT Consulting
CE: Pain Management and Opioid Prescribing
53
RKT Consulting
CE: Pain Management and Opioid Prescribing
54
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
State Total CE Hours Affected
Boards (CEs) Required Pain and Opioid CE Requirements Prescribers
Pennsylvania 30 CEs every 2 years Effective 01 July 2017, 2 CEs in pain management or identification of 2.660
addiction and 2 CEs in practices in prescribing or dispensing of opioids
each licensing period
Rhode Island 60 CEs every 3 years Any practitioner who prescribes a C-II opioid is required to successfully Not
if TPA certified; 48 if complete 8 CEs of Category 1 CE in any or all of the following topics: available
not TPA certified appropriate prescribing of opioids for pain; pharmacology; adverse
events; potential for dependence; tolerance; addiction; and alternatives to
opioids for pain management. Although no one specific course is
required, the Drug Addiction Treatment Act of 2000 (DATA 2000)
waiver training course qualifies for the above requirement. This specific
training requirement is required only once and must be completed before
renewal of controlled substance registration or two (2) years, whichever
is longer.
Tennessee 30 hours every 2 years 2 hours every 2 years 1,310
Utah 30 CEs every 2 years 3.5 CEs every 2 years on controlled substance prescribing. The 3.5 CEs 470 9
shall include: the scope of the controlled substance abuse problem in
Utah and the nation; all elements of the FDA Blueprint for Prescriber
Education under the FDA's Extended-Release and Long-Acting Opioid
Analgesics Risk Evaluation and Mitigation Strategy, as published 09
July 2012, or as it may be subsequently revised; the national and Utah-
specific resources available to prescribers to assist in appropriate
controlled substance and opioid prescribing; patient record
documentation for controlled substance and opioid prescribing; and
office policies, procedures, and implementation.
Vermont 40 CEs for TPA; 20 Effective 08 June 2016: 2 CEs for each full licensing period on the topics 117
CEs for non-TPA of: abuse and diversion, safe use, and appropriate storage and disposal of
controlled substances; appropriate use of the Vermont Prescription
Monitoring System; risk assessment for abuse or addiction;
pharmacological and nonpharmacological alternatives to opioids for
managing pain; medication tapering and cessation of the use of
controlled substances; and, relevant state and federal laws and
regulations concerning the prescription of opioid controlled substance.
West 43 CEs every 2 years 3 CEs in drug diversion training and best practice controlled substance 180 1,9
Virginia prescribing within 1 year of initial licensing; 3 CEs on same topic every
2 years if prescribing, dispensing, or administering controlled
substances; if not prescribing, administering, or dispensing controlled
substances, either 3 CEs on drug diversion and best practice prescribing
or the licensee must certify that he/she has not prescribed, administered,
or dispensed controlled substances during entire 2-year renewal cycle.
55
RKT Consulting
CE: Pain Management and Opioid Prescribing
56
RKT Consulting
CE: Pain Management and Opioid Prescribing
57
RKT Consulting
CE: Pain Management and Opioid Prescribing
Number of
Total CE Hours (CEs) Affected
State Boards Required Pain and Opioid CE Requirements Pharmacists
West Virginia 30 CEs every 2 years 3 CEs of drug diversion training and best practice prescribing of 2,180 9
controlled substances training unless verifying he/she has not
administered or dispensed controlled substances during the entire
previous reporting period. “Drug diversion training and best practice
prescribing of controlled substances training” means a training course
of at least 3 CPE hours which includes, at a minimum, all of the
following: Drug diversion, including West Virginia statistics on
prescription drug abuse and resulting deaths; Epidemiology of
chronic pain and misuse of opioids; Indication for opioids in chronic
pain treatment including, at a minimum, general characteristics,
toxicities, and drug interactions; Patient evaluation and risk
assessment and tools to assess risk and monitor benefits. Initiation
and ongoing-management of chronic pain in patients treated with
opioid based therapies, including, at a minimum: treatment
objectives; medication therapy management and collaborative
practice; prescription of controlled substance agreements; urine
screens and pill counts; patient education on safe use, storage and
disposal of opioids; discontinuation of opioids; and documentation
and medical records; Case study of a patient with chronic pain;
Identification of diversion and drug seeking tactics and behaviors;
Best practice methods for working with patients, prescribers, law
enforcement, and others as appropriate, concerning patients suspected
of drug seeking behavior and diversion; Compliance with controlled
substances laws and rules; and How to Register with and use the
West Virginia Controlled Substances Monitoring Program.
58
RKT Consulting
CE: Pain Management and Opioid Prescribing
59
RKT Consulting
CE: Pain Management and Opioid Prescribing
60
RKT Consulting
CE: Pain Management and Opioid Prescribing
Physician
State MD/DO Assistant Podiatrist Naturopath Nurse Dentist Optometrist Pharmacist
Iowa Meets Does Not Meet Does Not Meet No State CE Does Not Meet Does Not Meet No State CE No State CE
Requirement Requirement Requirement
Kansas No State CE No State CE No State CE No State CE No State CE No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement Requirement Requirement Requirement
Kentucky Partially Meets Partially Meets Meets No State CE Partially Meets Meets Meets No State CE
Requirement Requirement
Louisiana Does Not Meet Partially Meets Meets No State CE Meets Meets No State CE No State CE
Requirement Requirement Requirement
Maine Meets Meets Meets No State CE Meets Meets No State CE No State CE
Requirement Requirement Requirement
Maryland Meets Meets Meets No State CE Meets Meets No State CE No State CE
Requirement Requirement Requirement
Massachusetts Partially Meets Meets Meets No State CE Meets Meets No State CE No State CE
Requirement Requirement Requirement
Michigan Meets No State CE Meets No State CE Meets Does Not Meet Does Not Meet Meets
Requirement Requirement
Minnesota Meets Meets Meets No State CE Meets Meets Meets No State CE
Requirement Requirement
Mississippi Meets Meets Meets No State CE Meets Meets No State CE Meets
Requirement Requirement
Missouri No State CE No State CE No State CE No State CE No State CE No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement Requirement Requirement Requirement
Montana No State CE No State CE No State CE No State CE Meets No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement Requirement Requirement
Nebraska Partially Meets Partially Meets Partially Meets No State CE Partially Meets Partially Meets No State CE No State CE
Requirement Requirement Requirement
Nevada Meets Meets Meets No State CE Meets Meets Meets No State CE
Requirement Requirement
New Meets Meets No State CE No State CE Meets Meets Meets No State CE
Hampshire Requirement Requirement Requirement
61
RKT Consulting
CE: Pain Management and Opioid Prescribing
Physician
State MD/DO Assistant Podiatrist Naturopath Nurse Dentist Optometrist Pharmacist
New Jersey Meets Meets Meets No State CE Meets Meets Meets Meets
Requirement
New Mexico Partially Meets Partially Meets Meets No State CE Meets Partially Meets Meets Meets
Requirement
New York Partially Meets Partially Meets Does Not Meet No State CE Meets Partially Meets No State CE No State CE
Requirement Requirement Requirement
North Carolina Meets Meets Meets No State CE Meets Meets Meets No State CE
Requirement Requirement
North Dakota No State CE No State CE No State CE No State CE Meets No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement Requirement Requirement
Ohio Meets Meets No State CE No State CE Meets No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement
Oklahoma Meets Meets No State CE No State CE Meets No State CE Meets No State CE
Requirement Requirement Requirement Requirement
Oregon Partially Meets Partially Meets Partially Meets Partially Meets Partially Meets Does Not Meet No State CE Partially Meets
Requirement
Pennsylvania Meets Meets Meets No State CE Meets Meets Meets Meets
Requirement
Rhode Island Meets Meets No State CE No State CE Meets Meets Meets No State CE
Requirement Requirement Requirement
South Carolina Meets Meets Meets No State CE Meets No State CE No State CE Does Not Meet
Requirement Requirement Requirement
South Dakota No State CE No State CE No State CE No State CE No State CE No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement Requirement Requirement Requirement
Tennessee Does Not Meet Partially Meets Meets No State CE Partially Meets Partially Meets Meets No State CE
Requirement Requirement
Texas Meets Meets Meets No State CE Meets No State CE No State CE Meets
Requirement Requirement Requirement
Utah Partially Meets Partially Meets Partially Meets No State CE Partially Meets Partially Meets Partially Meets No State CE
Requirement Requirement
Vermont Partially Meets Does Not Meet Does Not Meet Does Not Meet Does Not Meet Does Not Meet Does Not Meet Does Not Meet
62
RKT Consulting
CE: Pain Management and Opioid Prescribing
Physician
State MD/DO Assistant Podiatrist Naturopath Nurse Dentist Optometrist Pharmacist
Virginia Meets Meets Meets No State CE Meets Meets No State CE Meets
Requirement Requirement
Washington Does Not Meet Meets No State CE No State CE Meets Meets No State CE No State CE
Requirement Requirement Requirement Requirement
West Virginia Meets Partially Meets Partially Meets No State CE Meets Meets Meets Partially Meets
Requirement
Wisconsin Does Not Meet No State CE Meets No State CE Meets Does Not Meet No State CE No State CE
Requirement Requirement Requirement Requirement
Wyoming No State CE No State CE No State CE No State CE Meets No State CE No State CE No State CE
Requirement Requirement Requirement Requirement Requirement Requirement Requirement
63
RKT Consulting
CE: Pain Management and Opioid Prescribing
64
RKT Consulting
CE: Pain Management and Opioid Prescribing
65
RKT Consulting
CE: Pain Management and Opioid Prescribing
66
RKT Consulting
CE: Pain Management and Opioid Prescribing
67
RKT Consulting
CE: Pain Management and Opioid Prescribing
68
RKT Consulting
CE: Pain Management and Opioid Prescribing
69
RKT Consulting
CE: Pain Management and Opioid Prescribing
70
RKT Consulting
CE: Pain Management and Opioid Prescribing
71
RKT Consulting
CE: Pain Management and Opioid Prescribing
72
RKT Consulting
CE: Pain Management and Opioid Prescribing
73
RKT Consulting
CE: Pain Management and Opioid Prescribing
74
RKT Consulting
CE: Pain Management and Opioid Prescribing
75
5(063URJUDP&RPSDQLHV
2SLRLG$QDOJHVLF5(06
7ZHOYH0RQWK)'$$VVHVVPHQW5HSRUW),1$/
9
$SSHQGL[ /HJLVODWLYHDQG3ROLF\&KDQJHV5HSRUW
3URSULHWDU\DQG&RQILGHQWLDO 3DJHRI
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
-XO\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
7$%/(2)&217(176
/,672)),*85(6
/,672)$&521<06
,1752'8&7,21
*29(510(17$/35(6&5,%,1*32/,&,(6
29(59,(:2)*29(510(17$/23,2,'35(6&5,%,1*32/,&,(6
7RS,VVXH$UHDV
0DMRU7RSLFVLQ3UHVFULELQJ3ROLFLHVE\<HDU
23,2,''26,1*7+5(6+2/'$1'/,0,732/,&,(6
(;7(1'('5(/($6(/21*$&7,1*23,2,'32/,&,(6
3$,163(&,$/,676$1'3$,10$1$*(0(17&/,1,&65()(55$/6&2168/7$7,216$1'5(48,5('
35$&7,&(6
32/,&,(6',5(&7/<5(/(9$1772)'$
$GRSWHG
3URSRVHG
32/,&,(6',5(&7/<5()(55,1*72&'&*8,'(/,1(6
23,2,'32/,&,(6)520121*29(510(17$/6285&(6
+($/7+,1685$1&(&203$1,(6
3+$50$&<%(1(),70$1$*(0(17&203$1,(6
+($/7+&$5(6<67(06
&+$,13+$50$&,(6
6800$5<$1'5(&200(1'$7,216
$33(1',;$*29(510(1723,2,'35(6&5,%,1*32/,&,(6
$33(1',;%6$03/,1*2)352326('$1'3$66('23,2,'32/,&,(6
$33(1',;&32/,&,(6)5207237(1+($/7+,1685(56
$33(1',;'32/,&,(6)520723),9(3+$50$&<%(1(),70$1$*(0(17&203$1,(6
$33(1',;(32/,&,(6)5207237(1+($/7+&$5(6<67(06
$33(1',;)32/,&,(6)5207237(1&+$,13+$50$&,(6
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
/,672)),*85(6
)LJXUH7RS,VVXH$UHDV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
/,672)$&521<06
)ROORZLQJLVDOLVWRIDFURQ\PVXVHGIUHTXHQWO\LQWKLVGRFXPHQW
&'& &HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ
&06 &HQWHUVIRU0HGLFDUHDQG0HGLFDLG6HUYLFHV
'R' 'HSDUWPHQWRI'HIHQVH
(5 ([WHQGHG5HOHDVH
(5/$ ([WHQGHG5HOHDVH/RQJ$FWLQJ
)'$ 8QLWHG6WDWHV)RRGDQG'UXJ$GPLQLVWUDWLRQ
++6 'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV
/$ /RQJ$FWLQJ
1$6(0 1DWLRQDO$FDGHPLHVRI6FLHQFHV(QJLQHHULQJDQG0HGLFLQH
2$ 2SLRLG$QDOJHVLF
3'03 3UHVFULSWLRQ'UXJ0RQLWRULQJ3URJUDP
5(06 5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\
9$ 'HSDUWPHQWRI9HWHUDQV$IIDLUV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
,1752'8&7,21
,Q-XO\WKH8QLWHG6WDWHV)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$DSSURYHGWKHLQLWLDO([WHQGHG5HOHDVH
(5DQG/RQJ$FWLQJ/$2SLRLG$QDOJHVLFV5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\5(06WRHQVXUH
WKDWWKHEHQHILWVRI(5DQG/$RSLRLGDQDOJHVLFV2$XVHGLQWKHRXWSDWLHQWVHWWLQJRXWZHLJKWKHULVNV,Q
6HSWHPEHU)'$UHOHDVHGWKHLUXSGDWHG2SLRLG$QDOJHVLF5(06(GXFDWLRQ%OXHSULQWIRU+HDOWK&DUH
3URYLGHUV,QYROYHGLQWKH7UHDWPHQWDQG0RQLWRULQJRI3DWLHQWVZLWK3DLQ
$FFRUGLQJWRWKHXSGDWHWKH2SLRLG$QDOJHVLF5(06LVLQWHQGHGWRVXSSRUWRWKHUQDWLRQDOHIIRUWV
XQGHUZD\WRDGGUHVVWKHPLVXVHDQGDEXVHRISUHVFULSWLRQRSLRLGDQDOJHVLFV7RHYDOXDWHWKHHIIHFWLYHQHVVRI
WKH([WHQGHG5HOHDVH/RQJ$FWLQJ(5/$5(06SURJUDPDQGWREHWWHUXQGHUVWDQGWKHREVHUYHGFKDQJHV
LQRSLRLGDQDOJHVLFSUHVFULELQJSDWWHUQVWKH2SLRLG$QDOJHVLF5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\
5(063URJUDPZDVPDQGDWHGE\)'$WRVWXG\RSLRLGUHODWHGOHJLVODWLYHDQGSROLF\FKDQJHVRFFXUULQJLQ
WKHODVWWKUHH\HDUV6SHFLILFDOO\)'$¶VUHTXHVWZDVDVIROORZV
³7REHWWHUXQGHUVWDQGREVHUYHGFKDQJHVLQ2$SUHVFULELQJSDWWHUQVSURYLGHDVXPPDU\RIPDMRU
OHJLVODWLYHDQGSROLF\FKDQJHVRFFXUULQJLQWKHODVW\HDUVDWWKHVWDWHODUJHKHDOWKFDUHV\VWHPRU
SD\HUDQGIHGHUDO&06OHYHOVUHODWHGWR2$SUHVFULELQJHJPDQGDWRU\3'03>SUHVFULSWLRQGUXJ
PRQLWRULQJSURJUDP@FKHFNVLQLWLDOGD\V¶VXSSO\RUSLOOOLPLWVPD[LPXPGRVHOLPLWV´
7KLVUHSRUWUHVSRQGVWR)'$¶VPDQGDWHE\SURYLGLQJDFRPSUHKHQVLYHFRPSLODWLRQDQGDQDO\VLVRIDOO
JRYHUQPHQWDORSLRLGSUHVFULELQJSROLFLHVWKDWZHUHDGRSWHGIURPWR²WKRVHVWDWHDQGQDWLRQDO
HIIRUWVZKLFKDUHVXSSRUWHGE\WKH2SLRLG$QDOJHVLF5(06
%HFDXVHWKHOHJLVODWLYHDQGUHJXODWRU\VHDVRQLVVWLOOXQGHUZD\QRFRPSUHKHQVLYHUHSRUWZDVSURYLGHG
IRUSROLFLHVWKDWKDYHEHHQDGRSWHGRULPSOHPHQWHGIURP-DQXDU\WR-XO\+RZHYHUQXPHURXVRSLRLG
SROLFLHVKDYHEHHQSURSRVHGLPSOHPHQWHGDQGRUDGRSWHGGXULQJDQGDVDPSOLQJRIWKHVHSROLFLHVLV
LQFOXGHGLQWKLVUHSRUW
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*29(510(17$/35(6&5,%,1*32/,&,(6
$UHYLHZRIJRYHUQPHQWDORSLRLGSUHVFULELQJSROLFLHVLPSOHPHQWHGLQWKURXJKUHYHDOVWKDWWKHEXON
RIWKHUHOHYDQWOHJLVODWLRQDQGUHJXODWLRQFDQEHJURXSHGLQWRILYHFDWHJRULHV%HFDXVHPRVWQHZSROLFLHVILW
WKLVVFKHPHWKHIROORZLQJUHYLHZLVRUJDQL]HGDFFRUGLQJWRWKRVHILYHFDWHJRULHVOLVWHGEHORZ
x 2SLRLG'RVLQJ7KUHVKROGVDQG/LPLWV
x ([WHQGHG5HOHDVH/RQJ$FWLQJ2SLRLG3ROLFLHV
x 3DLQ6SHFLDOLVWVDQG3DLQ0DQDJHPHQW&OLQLFV5HIHUUDOV&RQVXOWDWLRQVDQG5HTXLUHG3UDFWLFHV
x 3ROLFLHV'LUHFWO\5HODWHGWR)'$
x 3ROLFLHV'LUHFWO\5HIHUULQJWR&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ&'&*XLGHOLQHV
:LWKLQHDFKFDWHJRU\UHOHYDQWSROLFLHVDUHOLVWHGE\MXULVGLFWLRQZLWKEULHIGHVFULSWLRQVRIWKHNH\IHDWXUHVRI
HDFKSROLF\
2YHUYLHZRI*RYHUQPHQWDO2SLRLG3UHVFULELQJ3ROLFLHV
)LYHKXQGUHGWZHQW\VL[SROLFLHVUHODWHGWRRSLRLGSUHVFULELQJZHUHDGRSWHGIURP3ROLFLHV
LQFOXGHLQLWLDWLYHVIURPWKH3UHVLGHQWRIWKH8QLWHG6WDWHVDQGQXPHURXV*RYHUQRUVIHGHUDOVWDWXWHVVWDWH
VWDWXWHVDQGUHJXODWLRQVVWDWHJXLGHOLQHVIURPOLFHQVLQJDJHQFLHVDQGGHSDUWPHQWVRIKHDOWK6WDWH0HGLFDLG
RSLRLGSROLFLHVDQGIHGHUDOJXLGHOLQHVDQGSROLFLHVIURPWKH&'&&06WKH'HSDUWPHQWRI9HWHUDQV$IIDLUV
9$WKH'HSDUWPHQWRI'HIHQVH'R'WKH'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV++6WKH1DWLRQDO
$FDGHPLHVRI6FLHQFHV(QJLQHHULQJDQG0HGLFLQH1$6(0DQGWKH)'$3URIHVVLRQDODVVRFLDWLRQ
JXLGHOLQHVZHUHQRWLQFOXGHGXQOHVVDVWDWHKDGRIILFLDOO\DGRSWHGWKHJXLGHOLQHPDNLQJLWDVWDWHDGRSWHG
VWDQGDUGRIFDUH
2IWKHRSLRLGSROLFLHVWKDWZHUHDGRSWHG
x FRQWDLQSURYLVLRQVUHODWHGWR3'03V
x OLPLWRSLRLGSUHVFULSWLRQVLQVRPHZD\ZLWKGLUHFWO\OLPLWLQJRSLRLGVLQFDVHVRIFKURQLF
SDLQOLPLWLQJRSLRLGVLQWKHDFXWHVHWWLQJDQGOLPLWLQJLQLWLDOSUHVFULSWLRQV
x DUH0HGLFDLGSROLFLHVLOOXVWUDWLQJWKDWHYHQZKHQVWDWHVGRQRWGLUHFWO\OLPLWRSLRLGVYLD
VWDWXWHRUOLFHQVLQJERDUGUXOHWKH\VWLOOVXEVWDQWLDOO\OLPLWRSLRLGVWKURXJKWKHLU0HGLFDLGSURJUDPV
x DUHHLWKHUJXLGHOLQHVWKHPVHOYHVRUDUHVWDWXWHVPDQGDWLQJWKHFUHDWLRQRIRUXVHRIFHUWDLQ
JXLGHOLQHV7KHVHJXLGHOLQHVFDQEHKHOSIXOLQDLGLQJDSUDFWLWLRQHUWRXQGHUVWDQGWKHH[SHFWHGVWDQGDUG
RIFDUHEXWWKH\FDQDOVREHFRQIXVLQJVRPHFODLPWREHDOLVWRIUHFRPPHQGDWLRQVRWKHUV
UHTXLUHPHQWVVRPHH[SOLFLWO\VWDWHWKH\DUHQRWVHWWLQJDVWDQGDUGRIFDUHRWKHUVH[SOLFLWO\VWDWHWKDW
WKH\DUHVHWWLQJDVWDQGDUGRIFDUHVRPHUHIOHFWDQGFDUU\RXWH[LVWLQJVWDWXWHVRWKHUVVHHPWRUXQ
FRQWUDU\WRH[LVWLQJVWDWXWHVVRPHDUHFOHDUDQGHDV\WRIROORZRWKHUVPDNHVWURQJUHFRPPHQGDWLRQV
ZLWKRXWFOHDUO\GHILQLQJWKHSDUDPHWHUVRIWKRVHUHFRPPHQGDWLRQV
x UHJDUGSUDFWLWLRQHUSUHVFULEHUHGXFDWLRQDERXWSDLQRSLRLGVDQGRUFRQWUROOHGVXEVWDQFHV
x PDQGDWHLPSURYHGLQIRUPHGFRQVHQWSURFHGXUHVDW\SHRISDWLHQWHGXFDWLRQSULRUWR
SUHVFULELQJRSLRLGV$QRWKHUHLJKWSROLFLHVUHODWHWRSDWLHQWHGXFDWLRQWKDWLVQRWVSHFLILFWRLQIRUPHG
FRQVHQW
x SXEOLFSROLFLHVLPSOHPHQWHGSULRUDXWKRUL]DWLRQUHTXLUHPHQWVIRURSLRLGVDQGSXEOLF
SROLFLHVLPSOHPHQWHGVWHSWKHUDS\UHTXLUHPHQWVIRURSLRLGVLOOXVWUDWLQJRQFHDJDLQKRZVWDWHVDUH
OLPLWLQJRSLRLGXVHZLWKRXWGLUHFWO\LPSOHPHQWLQJRSLRLGOLPLWV:KLOHVRPHXWLOL]DWLRQUHYLHZ
PHFKDQLVPVWHFKQLFDOO\DSSO\WRGLVSHQVLQJUDWKHUWKDQSUHVFULELQJWKH\FDQRIWHQDIIHFWSUHVFULELQJ
SDWWHUQVDVSUHVFULEHUVDWWHPSWWRDYRLGRQHURXVDSSURYDOSURFHVVHVWKDWFDQGHOD\WKHLUSDWLHQWV¶
WUHDWPHQW2WKHUXWLOL]DWLRQUHYLHZPHFKDQLVPVGLUHFWO\DIIHFWSUHVFULELQJDVWKH\DOORZSUHVFULEHUVWR
XVHRQO\FHUWDLQPHGLFDWLRQV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
7RS,VVXH$UHDV
)LJXUHLOOXVWUDWHVWKHQXPEHURISROLFLHVLPSOHPHQWHGGXULQJLQHDFKRIWKHPRVWFRPPRQO\
RFFXUULQJFDWHJRULHV3'03VZHUHVXEMHFWWRWKHODUJHVWQXPEHURIQHZSROLFLHVIROORZHGE\OLPLWDWLRQVRQ
RSLRLGGRVLQJDQGGXUDWLRQRIWUHDWPHQW$VXEVWDQWLDOQXPEHURISROLFLHVDOVRDGGUHVVHGRSLRLGWKHUDS\LQ
0HGLFDLGSURJUDPVSUHVFULELQJJXLGHOLQHVHGXFDWLRQRIKHDOWKFDUHSURYLGHUVLQIRUPHGFRQVHQWIRUSDWLHQWV
UHFHLYLQJRSLRLGWKHUDS\DQGSULRUDXWKRUL]DWLRQUHODWHGWRRSLRLGSUHVFULELQJDQGGLVSHQVLQJ
)LJXUH7RS,VVXH$UHDV
1XPEHURI5HOHYDQW3ROLFLHV
3ROLF\,VVXH$UHDV
0DMRU7RSLFVLQ3UHVFULELQJ3ROLFLHVE\<HDU
,QWKHUHZHUHQHZDQGRUXSGDWHGSUHVFULELQJSROLFLHVLQFOXGLQJFRPSUHKHQVLYH0HGLFDLGXSGDWHV
7KHWRSLVVXHVZLWKQXPEHURISROLFLHVIRUWKH\HDUIROORZ
x 3'038WLOL]DWLRQ
x 2SLRLG'RVDJHDQG'XUDWLRQ/LPLWV
x 0HGLFDLG2SLRLG3UHVFULELQJ3ROLFLHV
x 3UHVFULELQJ*XLGHOLQHV
x 3UDFWLWLRQHU(GXFDWLRQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
x 3ULRU$XWKRUL]DWLRQ
x 3DLQ&RPPLWWHHV7DVN)RUFHV
x ,QIRUPHG&RQVHQW
x 6WHS7KHUDS\
x 6FRSHRI3UDFWLFH
x (QGRUVLQJ&'&*XLGHOLQHV
'XULQJWKHQXPEHURIQHZDQGRUXSGDWHGSUHVFULELQJSROLFLHVDJDLQLQFOXGLQJFRPSUHKHQVLYH
0HGLFDLGXSGDWHVLQFUHDVHGWR7KHWRSIRXUPDMRUWRSLFVUHPDLQHGFRQVLVWHQWZLWKWKHSUHYLRXV\HDU
x 3'038WLOL]DWLRQ
x 2SLRLG'RVDJHDQG'XUDWLRQ/LPLWV
x 0HGLFDLG2SLRLG3UHVFULELQJ3ROLFLHV
x 3UHVFULELQJ*XLGHOLQHV
x 3ULRU$XWKRUL]DWLRQ
x ,QIRUPHG&RQVHQW
x 6WHS7KHUDS\
x 3DLQ2SLRLG5HVHDUFK
x 3UDFWLWLRQHU(GXFDWLRQ
x (QGRUVLQJ&'&*XLGHOLQHV
,QWKHUHZHUHQHZDQGRUXSGDWHGSROLFLHVLQFOXGLQJOLPLWHG0HGLFDLGXSGDWHV3'038WLOL]DWLRQ
2SLRLG'RVDJHDQG'XUDWLRQ/LPLWVDQG3UHVFULELQJ*XLGHOLQHVUHPDLQHGLQWKUHHRIWKHWRSIRXULVVXHVIRU
WKHWKLUG\HDULQDURZ
x 3'038WLOL]DWLRQ
x 2SLRLG'RVDJHDQG'XUDWLRQ/LPLWV
x 3UDFWLWLRQHU(GXFDWLRQ
x 3UHVFULELQJ*XLGHOLQHV
x ,QIRUPHG&RQVHQW
x 'RFXPHQWDWLRQLQ0HGLFDO5HFRUG
x 1RQRSLRLG$OWHUQDWLYHV
x 3DLQ2SLRLG5HVHDUFK
x 0HGLFDLG2SLRLG3UHVFULELQJ3ROLFLHV
x 3DLQ&RPPLWWHHV7DVN)RUFHV
2WKHU7RSLFV,QFOXGH7DSHULQJ&ULPLQDO/DZ)XQGLQJ8QVROLFLWHG5HSRUWV3DWLHQW(GXFDWLRQ$EXVH
'HWHUUHQW2SLRLGV3XEOLF(GXFDWLRQ9ROXQWDU\1RQRSLRLG'LUHFWLYHV/DEHOLQJ(PHUJHQF\0HGLFDO
6HUYLFHV3UHVFULSWLRQ)RUPV2SLRLG7D[DWLRQ6SHFLILF0HGLFDWLRQVWUDPDGROFDULVRSURGROJDEDSHQWLQDQG
PHWKDGRQH6SHFLILF'LVFLSOLQHV1XUVLQJ1DWXURSDWK\3RGLDWU\2SWRPHWU\DQG'HQWLVWU\*RYHUQPHQW
$JHQFLHV'($)'$DQG&06DQG:RUNHUV¶&RPSHQVDWLRQ
2SLRLG'RVLQJ7KUHVKROGDQG/LPLW3ROLFLHV
$FFRUGLQJWR)'$¶V2SLRLG$QDOJHVLF5(06(GXFDWLRQ%OXHSULQWIRU+HDOWK&DUH3URYLGHUV,QYROYHGLQWKH
7UHDWPHQWDQG0RQLWRULQJRI3DWLHQWVZLWK3DLQKHDOWKFDUHSURYLGHUVVKRXOGEHNQRZOHGJHDEOHDERXW
SUHVFULELQJWKHDSSURSULDWHGRVHEDVHGRQWKHH[SHFWHGGXUDWLRQRISDLQLHWKHORZHVWGRVHRIPHGLFDWLRQ
QHFHVVDU\WRWUHDWSDLQDQGIRUWKHVKRUWHVWWLPHKRZWRGHWHUPLQHDQLQLWLDOVDIHGRVHDQGVSHFLDO
SUHFDXWLRQVZLWKPHWKDGRQH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
'XULQJJRYHUQPHQWDOSROLFLHVZHUHLPSOHPHQWHGLQVWDWHVWKH'LVWULFWRI&ROXPELDDQGDW
WKHIHGHUDOOHYHOUHODWHGWRRSLRLGW\SHTXDQWLW\DQGGXUDWLRQOLPLWVIRUWKHWUHDWPHQWRIERWKDFXWHDQG
FKURQLFSDLQ2IWKRVHSROLFLHVKDYHRSLRLGWKUHVKROGVDQGOLPLWVVSHFLILFWRFKURQLFSDLQDSSO\WR
DFXWHSDLQDSSO\WRLQLWLDOSUHVFULSWLRQVZKHWKHUIRUDFXWHRUFKURQLFSDLQDQGLPSOHPHQWJHQHUDO
RSLRLGOLPLWVQRQVSHFLILFWRFKURQLFRUDFXWHSDLQ
/LQNVIROORZIRUSHUWLQHQWVWDWHDQGIHGHUDOSROLFLHV$VXFFLQFWVXPPDU\RIKRZHDFKSROLF\VSHFLILFDOO\
OLPLWVWKHGXUDWLRQDQGGRVDJHRIRSLRLGDQDOJHVLFVLVLQFOXGHGWKRXJKPDQ\SROLFLHVDIIHFWHGDGGLWLRQDODUHDV
UHODWHGWRRSLRLGSUHVFULELQJ$GGLWLRQDOGHWDLOVIRUHDFKSROLF\LPSOHPHQWHGGXULQJFDQEHIRXQG
LQ$SSHQGL[$$OWKRXJK)'$VSHFLILHGDQHYDOXDWLRQSHULRGFRQWDLQLQJRQO\SROLFLHVLPSOHPHQWHGGXULQJ
DOLPLWHGVDPSOLQJRIUHOHYDQWOHJLVODWLRQDQGUHJXODWLRQIURPWKHFXUUHQW\HDUPD\EHIRXQGLQ
$SSHQGL[%
8QLWHG6WDWHV .HQWXFN\ 1RUWK'DNRWD
$ODEDPD /RXLVLDQD 2KLR
$ODVND 0DLQH 2NODKRPD
$UL]RQD 0DU\ODQG 2UHJRQ
$UNDQVDV 0DVVDFKXVHWWV 3HQQV\OYDQLD
&RORUDGR 0LFKLJDQ 5KRGH,VODQG
&RQQHFWLFXW 0LQQHVRWD 6RXWK&DUROLQD
'HODZDUH 0LVVRXUL 7HQQHVVHH
'LVWULFWRI&ROXPELD 0RQWDQD 7H[DV
)ORULGD 1HEUDVND 8WDK
*HRUJLD 1HYDGD 9HUPRQW
+DZDLL 1HZ+DPSVKLUH 9LUJLQLD
,GDKR 1HZ-HUVH\ :DVKLQJWRQ
,OOLQRLV 1HZ0H[LFR :HVW9LUJLQLD
,QGLDQD 1HZ<RUN :LVFRQVLQ
,RZD 1RUWK&DUROLQD :\RPLQJ
8QLWHG6WDWHV
&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ²8QLWHG6WDWHV&HQWHUVIRU'LVHDVH&RQWURO
DQG3UHYHQWLRQ
&KURQLF3DLQ:KHQVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQFOLQLFLDQVVKRXOGSUHVFULEH
LPPHGLDWHUHOHDVHRSLRLGVLQVWHDGRIH[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGV:KHQRSLRLGV
DUHVWDUWHGFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVDJH&OLQLFLDQVVKRXOGXVHFDXWLRQ
ZKHQSUHVFULELQJRSLRLGVDWDQ\GRVDJHVKRXOGFDUHIXOO\UHDVVHVVHYLGHQFHRILQGLYLGXDOEHQHILWV
DQGULVNVZKHQLQFUHDVLQJGRVDJHWRPRUSKLQHPLOOLJUDPHTXLYDOHQWV00(GD\DQGVKRXOG
DYRLGLQFUHDVLQJGRVDJHWR00(GD\RUFDUHIXOO\MXVWLI\DGHFLVLRQWRWLWUDWHGRVDJHWR
00(GD\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$FXWH3DLQ:KHQRSLRLGVDUHXVHGIRUDFXWHSDLQFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYH
GRVHRILPPHGLDWHUHOHDVHRSLRLGVDQGVKRXOGSUHVFULEHQRJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKH
H[SHFWHGGXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV7KUHHGD\VRUOHVVZLOORIWHQEH
VXIILFLHQWPRUHWKDQVHYHQGD\VZLOOUDUHO\EHQHHGHG
&0&6,QIRUPDWLRQDO%XOOHWLQ%HVW3UDFWLFHVIRU$GGUHVVLQJ3UHVFULSWLRQ2SLRLG2YHUGRVHV0LVXVHDQG
$GGLFWLRQ
*HQHUDO/LPLWV$VWDWH0HGLFDLGDJHQF\RUFRQWUDFWHGPDQDJHGFDUHRUJDQL]DWLRQPD\LPSRVH
TXDQWLW\OLPLWVRQPHGLFDWLRQVDVDZD\WRSURPRWHVDIHDQGDSSURSULDWHXVHRIDPHGLFDWLRQ
HQVXULQJWKDWWKH\DUHQRWRYHUSUHVFULEHG)RUH[DPSOHTXDQWLW\OLPLWVPD\EHXVHIXOLQYHULI\LQJ
WKDWDPHWKDGRQHSUHVFULSWLRQIRUSDLQLVSUHVFULEHGRQO\IRUDVSHFLILHGGXUDWLRQVRWKHSUHVFULEHU
FDQUHDVVHVVWKHUHFLSLHQWSHULRGLFDOO\$VLJQLILFDQWSHUFHQWDJHRIVWDWHVDSSO\TXDQWLW\OLPLWVWR
RSLRLGSURGXFWVSUHVFULEHGIRUSDLQ
9$'R'&OLQLFDO3UDFWLFH*XLGHOLQHIRU2SLRLG7KHUDS\IRU&KURQLF3DLQ
&KURQLF3DLQ,ISUHVFULELQJRSLRLGWKHUDS\IRUSDWLHQWVZLWKFKURQLFSDLQUHFRPPHQGVDVKRUW
GXUDWLRQ&RQVLGHUDWLRQRIRSLRLGWKHUDS\EH\RQGGD\VUHTXLUHVUHHYDOXDWLRQDQGGLVFXVVLRQ
ZLWKSDWLHQWRIULVNVDQGEHQHILWV
$FXWH3DLQ5HFRPPHQGVDJDLQVWSUHVFULELQJORQJDFWLQJRSLRLGVIRUDFXWHSDLQDVDQDVQHHGHG
PHGLFDWLRQRURQLQLWLDWLRQRIORQJWHUPRSLRLGWKHUDS\,IWDNHKRPHRSLRLGVDUHSUHVFULEHG
UHFRPPHQGVWKDWLPPHGLDWHUHOHDVHRSLRLGVDUHXVHGDWWKHORZHVWHIIHFWLYHGRVHZLWKRSLRLG
WKHUDS\UHDVVHVVPHQWQRODWHUWKDQGD\VWRGHWHUPLQHLIDGMXVWPHQWVRUFRQWLQXLQJRSLRLG
WKHUDS\LVLQGLFDWHG
$ODEDPD
$GPLQLVWUDWLYH5XOH;5LVNDQG$EXVH0LWLJDWLRQ6WUDWHJLHVE\3UHVFULELQJ'HQWLVWV%RDUGRI
'HQWDO([DPLQHUVRI$ODEDPD
$FXWH3DLQ'HQWLVWVDUHUHTXLUHGWRGRFXPHQWWKHXVHRIULVNDQGPLWLJDWLRQVWUDWHJLHVXQGHUWKH
IROORZLQJFLUFXPVWDQFHV
x 7KHFRQWLQXDWLRQRIFRQWUROOHGVXEVWDQFHWKHUDS\JUHDWHUWKDQVHYHQGD\VIRUDQ\SDWLHQW
x 3ULRUWRSUHVFULELQJDQ\FRQWUROOHGVXEVWDQFHRIPRUHWKDQ00(GD\
x )RUDQ\SDWLHQWWKDWLVSUHVFULEHGWKUHHRUPRUHDFXWHSDLQPHGLFLQHSUHVFULSWLRQVE\WKH
GHQWLVWLQDQ\GD\SHULRG
x )RUDQ\SDWLHQWZKRJLYHVDKLVWRU\RIFKURQLFSDLQPHGLFLQHVDQGRUEHQ]RGLD]HSLQHVVR
WKDWWKHGHQWLVWPD\FRRUGLQDWHWKHUDS\ZLWKWKHSDWLHQW¶VRWKHUSUHVFULELQJPHGLFDO
SURYLGHUVDQGYHULI\WKHVSHFLILFVRIWKHFKURQLFPHGLFDWLRQV'XHWRWKHKHLJKWHQHGULVNRI
DGYHUVHHYHQWVDVVRFLDWHGZLWKWKHFRQFXUUHQWXVHRIRSLRLGVDQGEHQ]RGLD]HSLQHVGHQWLVWV
VKRXOGFRQVLGHUDOWHUQDWLYHIRUPVRIWUHDWPHQW
$ODVND
5HFRPPHQGLQJ$GRSWLRQRI:DVKLQJWRQ
V,QWHUDJHQF\*XLGHOLQHVRQ3UHVFULELQJ2SLRLGVIRU3DLQ
'LYLVLRQRI&RUSRUDWLRQV%XVLQHVVDQG3URIHVVLRQDO/LFHQVLQJ-RLQW&RPPLWWHHRQ3UHVFULSWLYH
*XLGHOLQHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
&KURQLF3DLQ5HFRPPHQGVDGRSWLRQRIWKH6WDWHRI:DVKLQJWRQ
V,QWHUDJHQF\*XLGHOLQHVRQ
3UHVFULELQJ2SLRLGVIRU3DLQEXWZLWKRQHPDMRUFKDQJHUHGXFLQJ:$
V00(GD\GRVDJH
WKUHVKROGWRD00(GD\GRVDJHWKUHVKROG
2SLRLGV3UHVFULSWLRQV'DWDEDVH/LFHQVHV&KDSWHU666/$
,PSOHPHQWHGE\&RQWUROOHG6XEVWDQFH/HJLVODWLYH8SGDWH$ODVND¶V3UHVFULSWLRQ'UXJ
0RQLWRULQJ3URJUDP
,QLWLDO3UHVFULSWLRQV'LVDOORZVPRUHWKDQDVHYHQGD\VXSSO\RIRSLRLGVIRUDQLQLWLDOSUHVFULSWLRQ
6WDWHVWKDWLWLVWKHLQWHQWRIWKHOHJLVODWXUHWKDWWKHVHYHQGD\VXSSO\OLPLWIRUDQLQLWLDORSLRLG
SUHVFULSWLRQIRUSK\VLFLDQVGHQWLVWVDQGDGYDQFHGSUDFWLFHUHJLVWHUHGQXUVHVDQGWKHIRXUGD\
VXSSO\OLPLWIRURSWRPHWULVWVIRUDQLQLWLDORSLRLGSUHVFULSWLRQXQGHUWKLV$FWPD\QRWEH
FRQVLGHUHGDVDPLQLPXPOHQJWKRIWLPHDSSURSULDWHIRUDQLQLWLDOSUHVFULSWLRQ
$FXWH3DLQ$SUHVFULEHUPD\H[FHHGWKHVHYHQGD\DQGIRXUGD\OLPLWVLQFDVHVRIVHYHUHDFXWH
SDLQLIQHFHVVDU\LQWKHSURIHVVLRQDOMXGJHPHQWRIWKHSUHVFULEHU
&KURQLF3DLQ$SUHVFULEHUPD\H[FHHGWKHVHYHQGD\DQGIRXUGD\OLPLWVLQFDVHVRIFKURQLFSDLQ
LIQHFHVVDU\LQWKHSURIHVVLRQDOMXGJHPHQWRIWKHSUHVFULEHU
$ODVND2SLRLG3ROLF\7DVN)RUFH)LQDO5HFRPPHQGDWLRQV
&KURQLF3DLQ7KHWDVNIRUFHDSSUHFLDWHVWKHWKRXJKWIXOFRQVLGHUDWLRQWKDWWKH$ODVND6WDWH
0HGLFDODQG'HQWDO%RDUGV%RDUGRI3KDUPDF\%RDUGRI1XUVLQJ%RDUGRI2SWRPHWU\DQG
'LYLVLRQRI3URIHVVLRQDO/LFHQVLQJJDYHWRWKHLVVXHRIHVWDEOLVKLQJSUHVFULELQJJXLGHOLQHVIRU
$ODVNDOLFHQVHGSUDFWLWLRQHUV7KHWDVNIRUFHDSSUHFLDWHVWKDWDIWHUDWKRURXJKSXEOLFSURFHVV
WKHVHERDUGVKDYHDJUHHGWRLQFRUSRUDWHWKH,QWHUDJHQF\*XLGHOLQHRQ3UHVFULELQJ2SLRLGVIRU3DLQ
'HYHORSHGE\WKH:DVKLQJWRQ6WDWH$JHQF\0HGLFDO'LUHFWRUV¶*URXSDQGVWDNHKROGHUVLQ±
ZLWKWKHLPSRUWDQWDPHQGPHQWRIDPRUSKLQHHTXLYDOHQWGRVHOLPLWRIPJGD\:DVKLQJWRQ¶V
FRPSUHKHQVLYHJXLGHOLQHVZLWKWKHDPHQGHGPRUSKLQHHTXLYDOHQWGRVHRIPJGD\ZLOODGGUHVV
PDQ\FRQFHUQVUHODWHGWRSUHVFULELQJSUDFWLFHV
$ODVND'HSDUWPHQWRI+HDOWKDQG6RFLDO6HUYLFHV'LYLVLRQRI3XEOLF$VVLVWDQFH
*HQHUDO/LPLWV$ODVND0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQHIRU
3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ)XUWKHUPRUH
XSGDWHVZHUHPDGHWRRSLRLGTXDQWLW\OLPLWV
$UL]RQD
&RQWUROOHGVXEVWDQFHVGRVDJHOLPLW&KDSWHU
*HQHUDO/LPLWV&ODULILHVWKDWWKH00(GD\RSLRLGOLPLWGRHVQRWDSSO\WRSDWLHQWVEHLQJ
WUHDWHGLQVLGHDKHDOWKFDUHLQVWLWXWLRQQRUGRHVWKHOLPLWDSSO\IRUGD\VIROORZLQJDVXUJLFDO
SURFHGXUH)RUFDVHVLQZKLFKWKHSK\VLFLDQEHOLHYHVPRUHWKDQ00(GD\RIRSLRLGLVQHHGHG
WKLVELOODGGVLQDGGLWLRQWRFRQVXOWDWLRQZLWKDERDUGFHUWLILHGSDLQVSHFLDOLVWDQRSWLRQIRUWKH
SK\VLFLDQWRFRQVXOWZLWKDQRSLRLGDVVLVWDQFHUHIHUUDOFDOOVHUYLFH
3KDUPDFLVWVFRQWUROOHGVXEVWDQFHV&KDSWHU
,QLWLDO3UHVFULSWLRQV&ODULILHVWKDWDQLQLWLDOSUHVFULSWLRQIRUD6FKHGXOH,,RSLRLGWKDWLVZULWWHQIRU
PRUHWKDQDGD\VXSSO\WKHSUHH[LVWLQJOLPLWIRULQLWLDOSUHVFULSWLRQVLVGHHPHGWRPHHWWKH
UHTXLUHPHQWVRIDQH[HPSWLRQZKHQWKHSUHVFULSWLRQLVSUHVHQWHGWRWKHGLVSHQVHU$SKDUPDFLVWLV
QRWUHTXLUHGWRYHULI\ZLWKWKHSUHVFULEHUZKHWKHUWKHLQLWLDOSUHVFULSWLRQFRPSOLHVZLWKODZ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
&RQWUROOHGVXEVWDQFHVUHJXODWLRQDSSURSULDWLRQ&KDSWHU)LUVW6SHFLDO6HVVLRQ
,QLWLDO3UHVFULSWLRQV/LPLWVDQLQLWLDOSUHVFULSWLRQIRUD6FKHGXOH,,FRQWUROOHGVXEVWDQFHIRUSDLQ
PDQDJHPHQWWRDGD\VXSSO\DQGSHUPLWVDGD\VXSSO\IRULQLWLDOSUHVFULSWLRQVIROORZLQJD
VXUJLFDOSURFHGXUHZLWKH[FHSWLRQV
*HQHUDO/LPLWV3URKLELWVDKHDOWKSURIHVVLRQDOZKRLVDXWKRUL]HGWRSUHVFULEHFRQWUROOHG
VXEVWDQFHVIURPLVVXLQJDQHZSUHVFULSWLRQRUGHUIRUD6FKHGXOH,,FRQWUROOHGVXEVWDQFHIRUSDLQ
PDQDJHPHQWWKDWH[FHHGV00(VZLWKH[FHSWLRQV'LUHFWVDKHDOWKSURIHVVLRQDOZKREHOLHYHVD
SDWLHQWUHTXLUHVPRUHWKDQ00(VSHUGD\WRFRQVXOWZLWKDERDUGFHUWLILHGSDLQVSHFLDOLVW
5HTXLUHVWKDWDKHDOWKSURIHVVLRQDODGGLWLRQDOO\SUHVFULEHQDOR[RQHK\GURFKORULGHRUDQRWKHU
RSLRLGDQWDJRQLVWWRDSDWLHQWZKRLVSUHVFULEHGPRUHWKDQ00(VSHUGD\
2SWRPHWULVWV6SHFLILHVWKDWDQRSWRPHWULVWPD\SUHVFULEHRUDGPLQLVWHUDFRQWUROOHGVXEVWDQFH
RQO\LILWLVDQDQDOJHVLFWKDWZDVUHFODVVLILHGIURP6FKHGXOH,,,WR6FKHGXOH,,DIWHU-DQXDU\
1XUVHV'LUHFWVWKH%RDUGRI1XUVLQJWRDGRSWUXOHVWKDWSURKLELWUHJLVWHUHGQXUVHSUDFWLWLRQHUVDQG
PLGZLYHVIURPGLVSHQVLQJ6FKHGXOH,,RSLRLGVIRUSDLQPDQDJHPHQWEXWWKDWSHUPLWUHJLVWHUHG
QXUVHSUDFWLWLRQHUVWRGLVSHQVH6FKHGXOH,,FRQWUROOHGVXEVWDQFHVIRUPHGLFDWLRQDVVLVWHGWUHDWPHQW
IRUVXEVWDQFHXVHGLVRUGHUV
$UL]RQD2SLRLG3UHVFULELQJ*XLGHOLQHV$UL]RQD'HSDUWPHQWRI+HDOWK6HUYLFHV
$FXWH3DLQ,IRSLRLGVDUHLQGLFDWHGIRUDFXWHSDLQLQLWLDWHWKHUDS\DWWKHORZHVWHIIHFWLYHGRVHIRU
QRORQJHUWKDQDGD\GXUDWLRQUHDVVHVVLISDLQSHUVLVWVEH\RQGWKHDQWLFLSDWHGGXUDWLRQ'RQRW
XVHORQJDFWLQJRSLRLGVIRUWKHWUHDWPHQWRIDFXWHSDLQ
&KURQLF3DLQ,IRSLRLGVDUHXVHGWRWUHDWFKURQLFSDLQSUHVFULEHDWWKHORZHVWSRVVLEOHGRVHDQG
IRUWKHVKRUWHVWSRVVLEOHWLPH5HDVVHVVWKHWUHDWPHQWUHJLPHQLISUHVFULELQJGRVHV0('V
$UNDQVDV
5HJXODWLRQ1R$UNDQVDV0HGLFDO%RDUG
*HQHUDO/LPLWV7KHSUHVFULELQJRIH[FHVVLYHDPRXQWVRIFRQWUROOHGVXEVWDQFHVWRDSDWLHQW
LQFOXGLQJWKHZULWLQJRIDQH[FHVVLYHQXPEHURISUHVFULSWLRQVIRUDQDGGLFWLQJRUSRWHQWLDOO\
KDUPIXOGUXJWRDSDWLHQW³([FHVVLYH´LVGHILQHGDVWKHZULWLQJRIDQ\SUHVFULSWLRQLQDQ\DPRXQW
ZLWKRXWDGHWDLOHGPHGLFDOMXVWLILFDWLRQIRUWKHSUHVFULSWLRQGRFXPHQWHGLQWKHSDWLHQWUHFRUG
&KURQLF3DLQ)RUFKURQLFSDLQHYHQZLWKDGRFXPHQWHGMXVWLILFDWLRQ³H[FHVVLYH´PHDQVDQ\WKLQJ
DERYH00(GD\RIRSLRLGVXQOHVVFHUWDLQUHTXLUHPHQWVDUHPHWUHODWHGWRGLDJQRVLV
GRFXPHQWDWLRQ3'03FKHFNVREMHFWLYHILQGLQJVDQGPRUH
$FXWH3DLQ)RUDFXWHSDLQ³H[FHVVLYH´PHDQVDQ\SUHVFULSWLRQZULWWHQIRUPRUHWKDQGD\V
$UNDQVDV0HGLFDLG
*HQHUDO/LPLWV$UNDQVDV0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHVIRU3UHVFULELQJ2SLRLGVIRU
&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP)XUWKHUXSGDWHVZHUHPDGHUHODWHGWRRSLRLG
TXDQWLW\OLPLWV
$UNDQVDV0HGLFDLG
*HQHUDO/LPLWV$UNDQVDV0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRXSGDWHWKHLU)HHIRU6HUYLFH
SURJUDPLQUHODWHGWRRSLRLGTXDQWLW\OLPLWV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
0DQGDWH3UHVFULEHUVWRFKHFNWKH3UHVFULSWLRQ0RQLWRULQJ3URJUDP$UNDQVDV6WDWH%RDUGRI'HQWDO
([DPLQHUV
'HQWLVWV/LPLWVSUHVFULSWLRQVIRU6FKHGXOH,,RU,,,RSLDWHVWRWKHWRWDOPD[LPXPPDQXIDFWXUHU¶V
UHFRPPHQGHGGDLO\GRVHIRUDWRWDORIGD\VDGPLQLVWUDWLRQ
5HJXODWLRQ1R$UNDQVDV0HGLFDO%RDUG
*HQHUDO/LPLWV5HTXLUHVGRFXPHQWHGPHGLFDOMXVWLILFDWLRQIRU³H[FHVVLYH´RSLRLGSUHVFULSWLRQV
WKDWH[FHHG00(GD\
&RORUDGR
2SLRLG3ROLF\&KDQJH)$4VIRU3URYLGHUV+HDOWK)LUVW&RORUDGR0HGLFDLGDQG'HSDUWPHQWRI+HDOWK
&DUH3ROLF\DQG)LQDQFLQJ
*HQHUDO/LPLWV7KHPD[LPXPGDLO\TXDQWLW\RIVKRUWDFWLQJRSLRLGVLVGRVDJHIRUPVSHUGD\
SLOOVIRUDGD\VXSSO\IRURSLRLGQDwYHSDWLHQWV$OOORQJDFWLQJRSLRLGVZLOOUHTXLUHDSULRU
DXWKRUL]DWLRQIRURSLRLGQDwYHSDWLHQWV
&OLQLFDO3UDFWLFHIRU2SLRLG3UHVFULELQJ6%
,QLWLDO3UHVFULSWLRQV5HVWULFWVWKHQXPEHURIRSLRLGSLOOVWKDWDKHDOWKFDUHSUDFWLWLRQHULQFOXGLQJ
SK\VLFLDQVSK\VLFLDQDVVLVWDQWVDGYDQFHGSUDFWLFHQXUVHVGHQWLVWVRSWRPHWULVWVSRGLDWULVWVDQG
YHWHULQDULDQVPD\SUHVFULEHIRUDQLQLWLDOSUHVFULSWLRQWRDVHYHQGD\VXSSO\DQGDOORZVHDFK
KHDOWKFDUHSUDFWLWLRQHUWRH[HUFLVHGLVFUHWLRQWRLQFOXGHDVHFRQGILOOIRUDVHYHQGD\VXSSO\ZLWK
H[FHSWLRQV
+HDOWK)LUVW&RORUDGR%HQHILWVDQG6HUYLFHV+HDOWK)LUVW&RORUDGR0HGLFDLG'HSDUWPHQWRI+HDOWK
&DUH3ROLF\DQG)LQDQFLQJ
*HQHUDO/LPLWV%HJLQQLQJ1RYHPEHUWKHWRWDOGDLO\OLPLWRI00(ZLOOEHGHFUHDVLQJ
IURP00(SHUGD\WR00(SHUGD\,IDSUHVFULSWLRQSXWVDPHPEHUDERYH00(
SHUGD\IXUWKHUDSSURYDOVZLOOEHUHTXLUHGWRDOORZWLPHIRUWKHSUHVFULEHUWRZRUNZLWKWKH
PHPEHUWRVDIHO\WDSHURSLRLGGRVHVGRZQWR00(ZKLOHPDNLQJVXUHWKHPHPEHUKDV
DGHTXDWHSDLQFRQWURO,QVRPHFLUFXPVWDQFHVDFRQVXOWDWLRQZLWKWKH'HSDUWPHQW¶VSDLQ
PDQDJHPHQWSK\VLFLDQPD\EHUHTXLUHG
'HQWLVWV,QGHQWDOVHWWLQJVWKHRSLRLGSROLF\ZLOODOORZPHPEHUVWRUHFHLYHWKUHHIRXUGD\
SUHVFULSWLRQILOOVDQGDIRXUWKUHILOOUHTXHVWZLOOUHTXLUHIXUWKHUDSSURYDOV,QHDFKILOOWKHTXDQWLW\
OLPLWIRUGHQWDORSLRLGVZLOOEHSLOOV0HPEHUVXQGHUJRLQJPRUHFRPSOH[GHQWDOSURFHGXUHV
VXFKDVPDMRURURIDFLDOVXUJHU\PD\EHDSSURYHGIRUXSWRDVHYHQGD\VXSSO\DQGXSWRSLOOV
SHUILOO
&RQQHFWLFXW
$Q$FW&RQFHUQLQJ2SLRLGVDQG$FFHVVWR2YHUGRVH5HYHUVDO'UXJV3XEOLF$FW1R
,QLWLDO3UHVFULSWLRQV/LPLWVRSLRLGSUHVFULSWLRQVWRVHYHQGD\VIRUQHZSDWLHQWLQWKHRXWSDWLHQW
VHWWLQJ
*HQHUDO/LPLWV/LPLWVRSLRLGSUHVFULSWLRQVIRUPLQRUVWRVHYHQGD\VXSSOLHV&UHDWHVH[FHSWLRQV
EDVHGRQSURIHVVLRQDOPHGLFDOMXGJPHQW
$Q$FW&RQFHUQLQJWKH/HJLVODWLYH&RPPLVVLRQHU¶V5HFRPPHQGDWLRQVIRU7HFKQLFDO&KDQJHVWRWKH
3XEOLF6WDWXWHV3XEOLF$FW1R
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*HQHUDO/LPLWV0DNHVRQO\WHFKQLFDOFKDQJHVWRH[LVWLQJODZUHODWHGWRRSLRLGOLPLWV
+XVN\+HDOWK0HGLFDLG
*HQHUDO/LPLWV&RQQHFWLFXW0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQH
IRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ)XUWKHU
XSGDWHVZHUHPDGHUHODWHGWRRSLRLGTXDQWLW\OLPLWV
'HODZDUH
$Q$FWWR$PHQG7LWOHRIWKH'HODZDUH&RGH5HODWLQJWR3URIHVVLRQDQG2FFXSDWLRQRI2SWRPHWU\
'HODZDUH&RGH7LWOH&KDSWHU
2SWRPHWULVWV$OORZVRSWRPHWULVWVWRSUHVFULEHFRQWUROOHGVXEVWDQFHVEXWZLWKDOLPLWDWLRQRID
KRXUVXSSO\IRU6FKHGXOH,,FRQWUROOHGVXEVWDQFHVFRQWDLQLQJK\GURFRGRQHDQGIRUDOO6FKHGXOH,,,
,9DQG9FRQWUROOHGVXEVWDQFHV
6DIH3UHVFULELQJRI2SLRLG$QDOJHVLFV'HSDUWPHQWRI6WDWH'LYLVLRQRI3URIHVVLRQDO5HJXODWLRQ
$FXWH3DLQ:KHQLVVXLQJDSUHVFULSWLRQIRUDQRSLRLGDQDOJHVLFWRDQDGXOWSDWLHQWIRURXWSDWLHQW
XVHIRUWKHILUVWWLPHIRUDQ$FXWH3DLQ(SLVRGHDSUDFWLWLRQHUPD\QRWLVVXHDSUHVFULSWLRQIRU
PRUHWKDQDVHYHQGD\VXSSO\
*HQHUDO/LPLWV$SUDFWLWLRQHUPD\QRWLVVXHDSUHVFULSWLRQIRUDQRSLRLGDQDOJHVLFWRDPLQRUIRU
PRUHWKDQDVHYHQGD\VXSSO\DWDQ\WLPHXQOHVVLQWKHSURIHVVLRQDOPHGLFDOMXGJPHQWRIWKH
SUDFWLWLRQHUPRUHWKDQDVHYHQGD\VXSSO\LVUHTXLUHGWRWUHDWWKHDFXWHPHGLFDOFRQGLWLRQ
'HODZDUH3UHVFULSWLRQ2SLRLG*XLGHOLQHVIRU+HDOWK&DUH3URYLGHUV'HODZDUH+HDOWKDQG6RFLDO
6HUYLFHV'LYLVLRQRI3XEOLF+HDOWK
$FXWH3DLQ5HLWHUDWHVH[LVWLQJUHJXODWLRQV6DIH3UHVFULELQJRI2SLRLG$QDOJHVLFVDERYH
ZKLFKOLPLWSUHVFULSWLRQVIRUDFXWHSDLQWRQRPRUHWKDQGD\V
'HODZDUH+HDOWKDQG6RFLDO6HUYLFHV0HGLFDLGDQG0HGLFDO$VVLVWDQFH0HGLFDLG
*HQHUDO/LPLWV'HODZDUH0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVDQGRSLRLG
FOLQLFDOFULWHULD
'LVWULFWRI&ROXPELD
'&0HGLFDLG
*HQHUDO/LPLWV'&0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQHIRU
3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ)XUWKHUWKH\
SODQQHGWRUHTXLUHWKDW0DQDJHG&DUH2UJDQL]DWLRQVDGRSWWKHJXLGHOLQH7KH\DOVRLPSOHPHQWHG
QHZRSLRLGTXDQWLW\OLPLWV
)ORULGD
&RQWUROOHG6XEVWDQFHV&KDSWHU1R
$FXWH3DLQ3UHVFULSWLRQVIRU6FKHGXOH,,RSLRLGVSUHVFULEHGIRUDFXWHSDLQDUHOLPLWHGWRQRPRUH
WKDQDWKUHHGD\VXSSO\ZLWKH[FHSWLRQVIRUVSHFLILHGFRQGLWLRQVRUXSWRDVHYHQGD\VXSSO\
PD\EHLVVXHGLILWLVGHWHUPLQHGWREHPHGLFDOO\QHFHVVDU\DQGWKHSUHVFULEHUUHFRUGVWKHDFXWH
PHGLFDOFRQGLWLRQDQGODFNRIDOWHUQDWLYHWUHDWPHQWRSWLRQVWKDWMXVWLI\GHYLDWLRQIURPWKHWKUHH
GD\VXSSO\OLPLWDQGLQGLFDWHV³DFXWHSDLQH[FHSWLRQ´RQWKHSUHVFULSWLRQ'LVSHQVLQJ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
SUDFWLWLRQHUVDUHOLPLWHGIURPGLVSHQVLQJDVXSSO\RID6FKHGXOH,,RSLRLGWRWKUHHGD\VRUXSWRD
VHYHQGD\VXSSO\LIWKHSUDFWLWLRQHUGHWHUPLQHVLWLVPHGLFDOO\QHFHVVDU\DQGIROORZVWKHVDPH
VSHFLILHGSURFHGXUHVOLVWHGIRUSUHVFULELQJ6FKHGXOH,,RSLRLGVIRUDFXWHSDLQ$OOUHJXODWRU\
ERDUGVZLWKLQWKH'HSDUWPHQWRI+HDOWKDUHUHTXLUHGWRDGRSWUXOHVHVWDEOLVKLQJJXLGHOLQHVIRUWKH
SUHVFULELQJRIFRQWUROOHGVXEVWDQFHVWRWUHDWDFXWHSDLQ
,PSOHPHQWDWLRQIRU'HQWLVWV5XOH%6WDQGDUGVIRUWKH3UHVFULELQJRI&RQWUROOHG
6XEVWDQFHVIRUWKH7UHDWPHQWRI$FXWH3DLQ%RDUGRI'HQWLVWU\
*HRUJLD
*HRUJLD0HGLFDLG
*HQHUDO/LPLWV*HRUJLD0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
*HRUJLD0HGLFDLG
*HQHUDO/LPLWV*HRUJLD0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
+DZDLL
5HODWLQJWRWKH8QLIRUP&RQWUROOHG6XEVWDQFHV$FW$FW
*HQHUDO/LPLWV3URKLELWVDOO6FKHGXOH,,QDUFRWLFFRQWUROOHGVXEVWDQFHVIURPEHLQJSUHVFULEHGRU
GLVSHQVHGIRUPRUHWKDQDGD\VXSSO\
5HODWLQJWR:RUNHUV¶&RPSHQVDWLRQ$FW
,QLWLDO3UHVFULSWLRQV,QLWLDOFRQFXUUHQWSUHVFULSWLRQVIRURSLRLGVDQGEHQ]RGLD]HSLQHVVKDOOQRWEH
IRUORQJHUWKDQVHYHQFRQVHFXWLYHGD\V
&KURQLF3DLQ$QH[FHSWLRQIRU³FKURQLFSDLQ´LVDYDLODEOHWRWKHDERYHUHVWULFWLRQUHODWHGWRLQLWLDO
SUHVFULSWLRQV
,GDKR
,GDKR'HSDUWPHQWRI+HDOWKDQG:HOIDUH0HGLFDLG
*HQHUDO/LPLWV,GDKR0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHVIRU3UHVFULELQJ2SLRLGVIRU
&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP)XUWKHUXSGDWHVZHUHPDGHWRRSLRLGTXDQWLW\
OLPLWVLQ
,GDKR'HSDUWPHQWRI+HDOWKDQG:HOIDUH0HGLFDLG
*HQHUDO/LPLWV,GDKR0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQ
,OOLQRLV
0HWKDGRQH3UHVFULEHGIRU3DLQ,OOLQRLV'HSDUWPHQWRI+HDOWKFDUHDQG)DPLO\6HUYLFHV0HGLFDLG
*HQHUDO/LPLWV'XHWRVDIHW\FRQFHUQV+)6LVUHPRYLQJPHWKDGRQHSURGXFWVIRUWKHWUHDWPHQWRI
SDLQIURPWKH,OOLQRLV+)63UHIHUUHG'UXJ/LVW3'/HIIHFWLYH$SULO
,OOLQRLV'HSDUWPHQWRI+HDOWKFDUHDQG)DPLO\6HUYLFHV0HGLFDLG
*HQHUDO/LPLWV,OOLQRLV0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVDQGRSLRLGFOLQLFDOFULWHULDLQWKHLU
)HHIRU6HUYLFHSURJUDP
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
,QGLDQD
$Q$FWWRDPHQGWKH,QGLDQD&RGH&RQFHUQLQJ+XPDQ6HUYLFHV3XEOLF/DZ
*HQHUDO/LPLWV3URKLELWV0HGLFDLGUHLPEXUVHPHQWIRU6XEXWH[706XER[RQH70RUDVLPLODUWUDGH
QDPHRUJHQHULFRIWKHGUXJLIWKHGUXJZDVSUHVFULEHGIRUWKHWUHDWPHQWRISDLQRUSDLQ
PDQDJHPHQWDQGWKHGUXJLVRQO\LQGLFDWHGIRUDGGLFWLRQWUHDWPHQW
,$&7ULJJHUVIRULPSRVLWLRQRIUHTXLUHPHQWVH[HPSWLRQV0HGLFDO/LFHQVLQJ%RDUGRI,QGLDQD
&KURQLF3DLQ(VWDEOLVKHVUHTXLUHPHQWVFRQFHUQLQJWKHXVHRIRSLRLGVIRUFKURQLFSDLQ
PDQDJHPHQWIRUSDWLHQWVZLWKH[HPSWLRQV8QGHUFHUWDLQFLUFXPVWDQFHVGLVDOORZVPRUHWKDQ
RSLRLGFRQWDLQLQJSLOOVPRQWKIRUPRUHWKDQWKUHHFRQVHFXWLYHPRQWKVDPRUSKLQHHTXLYDOHQWGRVH
RIPRUHWKDQ00(GD\IRUPRUHWKDQWKUHHFRQVHFXWLYHPRQWKVDWUDQVGHUPDORSLRLGSDWFKIRU
PRUHWKDQWKUHHFRQVHFXWLYHPRQWKVWUDPDGROLQH[FHVVRI00(GD\IRUPRUHWKDQWKUHH
PRQWKVRUDQH[WHQGHGUHOHDVHRSLRLGWKDWLVQRWLQDQDEXVHGHWHUUHQWIRUPIRUZKLFKWKHUHLVDQ
)'$DSSURYHGDEXVHGHWHUUHQWIRUPDYDLODEOH
,QGLDQD0HGLFDLG
*HQHUDO/LPLWV,QGLDQD0HGLFDLGXSGDWHGUHTXLUHPHQWVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU
)HHIRU6HUYLFHSURJUDP
3UHVFULELQJDQG'LVSHQVLQJRI2SLRLGV3XEOLF/DZ
,QLWLDO3UHVFULSWLRQV/LPLWVWKHDPRXQWRIDQRSLRLGSUHVFULSWLRQDSUHVFULEHUPD\LVVXHIRUDQ
DGXOWZKRLVEHLQJSUHVFULEHGDQRSLRLGIRUWKHILUVWWLPHWRQRPRUHWKDQDVHYHQGD\VXSSO\ZLWK
H[FHSWLRQV
*HQHUDO/LPLWV/LPLWVWKHDPRXQWRIDQRSLRLGSUHVFULSWLRQDSUHVFULEHUPD\LVVXHWRDFKLOGOHVV
WKDQ\HDUVRIDJHWRQRPRUHWKDQDVHYHQGD\VXSSO\ZLWKH[FHSWLRQV5HTXLUHVWKHPHGLFDO
OLFHQVLQJERDUGLQFRQVXOWDWLRQZLWKVSHFLILHGSHUVRQVWRDGRSWHPHUJHQF\UXOHVDQGUXOHV
FRQFHUQLQJFRQGLWLRQVWKDWZLOOEHH[HPSWIURPWKHSUHVFULSWLRQOLPLWDWLRQV
,QGLDQD0HGLFDLG
*HQHUDO/LPLWV,QGLDQD0HGLFDLGXSGDWHGUHTXLUHPHQWVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU
)HHIRU6HUYLFHSURJUDP
,QGLDQD*XLGHOLQHVIRUWKH0DQDJHPHQWRI$FXWH3DLQ,QGLDQD6WDWH'HSDUWPHQWRI+HDOWK
$FXWH3DLQ7KHORZHVWHIIHFWLYHGRVHVKRXOGEHSUHVFULEHGZLWKQRJUHDWHUTXDQWLW\WKDQQHHGHG
IRUWKHH[SHFWHGGXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV)RUSDWLHQWVZLWKXQUHVROYHG
DFXWHSDLQDIWHUZHHNVSURYLGHUVVKRXOGUHSHDWDQDVVHVVPHQWDQGGHWHUPLQHZKHWKHUWUHDWPHQW
VKRXOGEHDGMXVWHG5HIHUUDOWRWKH,QGLDQD&KURQLF3DLQ0DQDJHPHQW3UHVFULELQJ5XOHPD\EH
KHOSIXODWWKLVSRLQW
,RZD
,RZD0HGLFDLG
*HQHUDO/LPLWV,RZD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLUIHHIRUVHUYLFH
SURJUDPLQ
$3UHVFULSWLRQ5HTXLUHPHQWV3KDUPDF\%RDUG,RZD$GPLQLVWUDWLYH&RGH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*HQHUDO/LPLWV6FKHGXOHDQG6FKHGXOH1GUXJVUHTXLUHDSURSHUO\H[HFXWHGPDQXDOO\VLJQHG
SUHVFULSWLRQRUDSUHVFULSWLRQHOHFWURQLFDOO\SUHSDUHGVLJQHGDQGWUDQVPLWWHGSXUVXDQWWR'($
UHTXLUHPHQWVIRUHOHFWURQLFSUHVFULELQJRIFRQWUROOHGVXEVWDQFHV1RUHILOOVDUHSHUPLWWHGRQWKHVH
RUGHUV
.HQWXFN\
.HQWXFN\0HGLFDLG
*HQHUDO/LPLWV.HQWXFN\0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HH
IRU6HUYLFHSURJUDPLQ
$Q$FW5HODWLQJWR&RQWUROOHG6XEVWDQFHV$FWV&KDSWHU
$FXWH3DLQ5HTXLUHVVWDWHOLFHQVLQJERDUGVWRSURPXOJDWHUHJXODWLRQVOLPLWLQJSUHVFULSWLRQVIRU
6FKHGXOH,,FRQWUROOHGVXEVWDQFHVIRUDFXWHSDLQWRDWKUHHGD\VXSSO\ZLWKFHUWDLQH[FHSWLRQV
/RXLVLDQD
/RXLVLDQD0HGLFDLG
*HQHUDO/LPLWV/RXLVLDQD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
'58*6&21752//('3URYLGHVIRUOLPLWDWLRQVRQWKHSUHVFULELQJRIRSLRLGV$FW
$FXWH3DLQ:KHQLVVXLQJDILUVWWLPHRSLRLGSUHVFULSWLRQIRURXWSDWLHQWXVHWRDQDGXOWSDWLHQW
ZLWKDQDFXWHFRQGLWLRQDPHGLFDOSUDFWLWLRQHUVKDOOQRWLVVXHDSUHVFULSWLRQIRUPRUHWKDQDVHYHQ
GD\VXSSO\
*HQHUDO/LPLWV$PHGLFDOSUDFWLWLRQHUVKDOOQRWLVVXHDSUHVFULSWLRQIRUDQRSLRLGWRDPLQRUIRU
PRUHWKDQDVHYHQGD\VXSSO\DWDQ\WLPHZLWKH[FHSWLRQVDQGVKDOOGLVFXVVZLWKDSDUHQWWXWRU
RUJXDUGLDQRIWKHPLQRUWKHULVNVDVVRFLDWHGZLWKRSLRLGXVHDQGWKHUHDVRQVZK\WKHSUHVFULSWLRQ
LVQHFHVVDU\
2SLRLG3UHVFULSWLRQ3ROLF\8SGDWH/RXLVLDQD'HSDUWPHQWRI+HDOWK0HGLFDLG
*HQHUDO/LPLWV(IIHFWLYH-XO\/'+ZLOOLPSOHPHQWVHYHQGD\TXDQWLW\OLPLWVIRUVKRUW
DFWLQJ6$RSLRLGVIRURSLRLGQDwYHUHFLSLHQWVHQUROOHGLQ+HDOWK\/RXLVLDQD0DQDJHG&DUH
2UJDQL]DWLRQV0&2DQG)HHIRU6HUYLFH))60&2VLQFOXGLQJ/RXLVLDQD+HDOWKFDUH
&RQQHFWLRQVDUHGLUHFWHGWRLPSOHPHQWRSLRLGTXDQWLW\OLPLWVDWWKH3RLQWRI6DOH326RQ-XO\
IRURSLRLGQDwYHUHFLSLHQWVQRRSLRLGVLQWKHPRVWFXUUHQWGD\SHULRG3ULRU
$XWKRUL]DWLRQRYHUULGHSURYLVLRQVZLOOEHLPSOHPHQWHGWRDOORZIRUPHGLFDOO\QHFHVVDU\TXDQWLWLHV
DERYHOLPLWV
2SLRLG3UHVFULSWLRQ3ROLF\8SGDWH/RXLVLDQD'HSDUWPHQWRI+HDOWK0HGLFDLG
*HQHUDO/LPLWV(IIHFWLYH6HSWHPEHUWKH/RXLVLDQD'HSDUWPHQWRI+HDOWK/'+ZLOO
LPSOHPHQWXSGDWHGVKRUWDFWLQJRSLRLGTXDQWLW\OLPLWVIRU0HGLFDLGSKDUPDF\FODLPVIRURSLRLG
QDwYHQRRSLRLGVLQWKHPRVWFXUUHQWGD\SHULRG2SLRLGSUHVFULSWLRQVIRUQDwYHUHFLSLHQWVZLOO
EHGHFUHDVHGWRD0RUSKLQH(TXLYDOHQW'RVLQJ0('OLPLWRIPJSHUGD\3UHVFULSWLRQVDQG
FXPXODWLYH0('VDERYHPJSHUGD\VKRXOGGHQ\DWWKH3RLQWRI6DOH5HFLSLHQWVZLWKD
GLDJQRVLVRIFDQFHUDQGSDOOLDWLYHFDUHDUHH[HPSWIURPWKH0('UHTXLUHPHQWV
&KURQLF3DLQ2SLRLGSUHVFULSWLRQVIRUFKURQLFUHFLSLHQWVZLOOEHGHFUHDVHGWRD0RUSKLQH
(TXLYDOHQW'RVLQJ0('OLPLWRIPJSHUGD\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
/RXLVLDQD0HGLFDLG2SLRLG3UHVFULSWLRQ3ROLF\/RXLVLDQD'HSDUWPHQWRI+HDOWK0HGLFDLG
$FXWH3DLQ)RUSDWLHQWVZLWKDFXWHSDLQOLPLWV0HGLFDLGRSLRLGTXDQWLW\WRGD\VIRUIHHIRU
VHUYLFHSDWLHQWVGD\VIRURSLRLGQDwYHPDQDJHGFDUHRUJDQL]DWLRQSDWLHQWVQRPRUHWKDQ
00(GD\
&KURQLF3DLQ)RUSDWLHQWVZLWKFKURQLFSDLQOLPLWV0HGLFDLGRSLRLGTXDQWLW\WRGD\VIRUIHH
IRUVHUYLFHSDWLHQWVQRPRUHWKDQ00(GD\E\-XO\QRPRUHWKDQ00(GD\E\
6HSWHPEHU
+($/7+$&&,1685$1&(3URKLELWVDKHDOWKLQVXUDQFHLVVXHUIURPGHQ\LQJDQRQRSLRLGSUHVFULSWLRQ
LQIDYRURIDQRSLRLGSUHVFULSWLRQ$FW
*HQHUDO/LPLWV:KHQDQRSLRLGLVGHHPHGQHFHVVDU\DQGSUHVFULEHGWKHLQVXUHUPD\QRW
VXEVWLWXWHDQDOWHUQDWLYHWKDWZRXOGUHTXLUHDQLQFUHDVHGQXPEHURISLOOVSHUSUHVFULSWLRQDKLJKHU
'($VFKHGXOHPHGLFDWLRQWKDQWKHRQHSUHVFULEHGRUDQH[WHQGHGUHOHDVHPHGLFDWLRQWKDWGRHV
QRWKDYHDEXVHGHWHUUHQWSURSHUWLHVIRUDSUHVFULSWLRQWKDWZDVLQWHQGHGWREHDEXVHGHWHUUHQW
0DLQH
$Q$FWWR3UHYHQW2SLDWH$EXVHE\6WUHQJWKHQLQJWKH&RQWUROOHG6XEVWDQFHV3UHVFULSWLRQ0RQLWRULQJ
3URJUDP63
*HQHUDO/LPLWV3URKLELWVRSLRLGSUHVFULSWLRQVLQH[FHVVRIPRUSKLQHPLOOLJUDPHTXLYDOHQWV
SHUGD\WRDQ\RQHSDWLHQW
&KURQLF3DLQ3URKLELWVRSLRLGSUHVFULSWLRQVRIPRUHWKDQGD\VDWDWLPHZKHQWUHDWLQJFKURQLF
SDLQ
$FXWH3DLQ3URKLELWVRSLRLGSUHVFULSWLRQVRIPRUHWKDQGD\VZKHQWUHDWLQJDFXWHSDLQ
$Q$FWWR&ODULI\WKH2SLRLG0HGLFDWLRQ3UHVFULELQJ/LPLW/DZ&KDSWHU
*HQHUDO/LPLWV&ODULILHVWKDWGLVSHQVLQJLQFRQQHFWLRQZLWKVXUJLFDOSURFHGXUHVLVH[HPSWIURP
WKHPRUSKLQHPLOOLJUDPHTXLYDOHQWVOLPLWDWLRQRQRSLRLGV&ODULILHVWKDWDQRSLRLGSURGXFWWKDW
LVODEHOHGE\WKHIHGHUDO)RRGDQG'UXJ$GPLQLVWUDWLRQWREHGLVSHQVHGRQO\LQDVWRFNERWWOHWKDW
H[FHHGVDGD\VXSSO\PD\EHSUHVFULEHGDVORQJDVWKHDPRXQWGLVSHQVHGGRHVQRWH[FHHGD
GD\VXSSO\
5HVROYH5HJDUGLQJ/HJLVODWLYH5HYLHZRI3RUWLRQVRI&KDSWHU5XOHV*RYHUQLQJWKH&RQWUROOHG
6XEVWDQFHV3UHVFULSWLRQ0RQLWRULQJ3URJUDPDQG3UHVFULSWLRQRI2SLRLG0HGLFDWLRQVD/DWHILOHG0DMRU
6XEVWDQWLYH5XOHRIWKH'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV&KDSWHU
*HQHUDO/LPLWV$PHQGVH[HPSWLRQVUHODWHGWRRSLRLGOLPLWV
&05&KDSWHU5XOHV*RYHUQLQJWKH&RQWUROOHG6XEVWDQFHV3UHVFULSWLRQ0RQLWRULQJ3URJUDP
DQG3UHVFULSWLRQRI2SLRLG0HGLFDWLRQV'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV0DLQH&DUH6HUYLFHV
*HQHUDO/LPLWV5HTXLUHVSUHVFULEHUVLQFOXGHDGHVLJQDWLRQRQWKHSUHVFULSWLRQDVWRZKHWKHUWKH
SUHVFULSWLRQLVIRUWKHWUHDWPHQWRIDFXWHRUFKURQLFSDLQWRDLGSKDUPDFLVWVLQGHWHUPLQLQJ
ZKHWKHUD00(GD\DQGRUGD\VXSSO\OLPLWDSSO\'HILQHVH[HPSWLRQVWROLPLWVRQRSLRLG
PHGLFDWLRQSUHVFULELQJ
)5HTXLUHPHQWVUHJDUGLQJSUHVFULSWLRQRIRSLRLGPHGLFDWLRQ&KDSWHU%RDUGRI/LFHQVXUHLQ
0HGLFLQH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*HQHUDO/LPLWV/LPLWVRSLRLGSUHVFULSWLRQVWRQRPRUHWKDQ00(GD\)RUSDWLHQWVDOUHDG\
UHFHLYLQJLQH[FHVVRI00(GD\WKH\PD\LPPHGLDWHO\UHFHLYHQRPRUHWKDQ00(GD\
RQRUDIWHU-XO\WKH\PD\QRWUHFHLYHPRUHWKDQ00(GD\1RPRUHWKDQDGD\
VXSSO\RIRSLRLGVPD\EHGLVSHQVHGLQPRVWFDVHV
$FXWH3DLQ$OORZVQRPRUHWKDQDGD\VXSSO\RIRSLRLGVIRUDFXWHSDLQ
0DU\ODQG
7KH3UHVFULEHU/LPLWV$FWRI&KDSWHU
*HQHUDO/LPLWV5HTXLULQJKHDOWKFDUHSURYLGHUVWRSUHVFULEHWKHORZHVWHIIHFWLYHGRVHRIDQRSLRLG
DQGLQDTXDQWLW\QRJUHDWHUWKDQWKHTXDQWLW\QHHGHGIRUWKHH[SHFWHGGXUDWLRQRIVSHFLILHGSDLQ
XQOHVVWKHRSLRLGLVSUHVFULEHGWRWUHDWDVSHFLILHGGLVRUGHURUVSHFLILHGSDLQUHTXLULQJWKHGRVDJH
TXDQWLW\DQGGXUDWLRQRIVSHFLILHGSUHVFULEHGRSLRLGVWREHEDVHGRQDQHYLGHQFHEDVHGFOLQLFDO
JXLGHOLQHIRUSUHVFULELQJFRQWUROOHGGDQJHURXVVXEVWDQFHV
,PSOHPHQWHGE\/LPLWVRQ3UHVFULELQJ2SLRLGV0'+HDOWK2FF&RGH
2SLRLG3ULRU$XWKRUL]DWLRQ,QGLFDWLRQV0DU\ODQG0HGLFDLG
*HQHUDO/LPLWV$OOSLOOIRUPVRIDOORSLRLGVKDYHDGD\TXDQWLW\OLPLWRIRUOHVV3ULRU
DXWKRUL]DWLRQLVUHTXLUHGLIH[FHHGLQJDGD\TXDQWLW\OLPLWH[FHHGLQJGDLO\GRVHRI
00(FXPXODWLYHRIDOORSLRLGVSUHVFULEHGRUDQ\SUHVFULSWLRQIRUIHQWDQ\OPHWKDGRQHIRU
SDLQRUDQ\ORQJDFWLQJRSLRLGV,QGLYLGXDOW\SHVRIRSLRLGVKDYHDYDULHW\RIGDLO\TXDQWLW\OLPLWV
DQGGD\TXDQWLW\OLPLWVVHHSROLF\IRUGHWDLOV
0DVVDFKXVHWWV
$Q$FW5HODWLYHWR6XEVWDQFH8VH7UHDWPHQW(GXFDWLRQDQG3UHYHQWLRQ&KDSWHU
,QLWLDO3UHVFULSWLRQV:KHQLVVXLQJDSUHVFULSWLRQIRUDQRSLDWHWRDQDGXOWSDWLHQWIRURXWSDWLHQWXVH
IRUWKHILUVWWLPHDSUDFWLWLRQHUVKDOOQRWLVVXHDSUHVFULSWLRQIRUPRUHWKDQDGD\VXSSO\
*HQHUDO/LPLWV$SUDFWLWLRQHUVKDOOQRWLVVXHDQRSLDWHSUHVFULSWLRQWRDPLQRUIRUPRUHWKDQD
GD\VXSSO\DWDQ\WLPHDQGVKDOOGLVFXVVZLWKWKHSDUHQWRUJXDUGLDQRIWKHPLQRUWKHULVNV
DVVRFLDWHGZLWKRSLDWHXVHDQGWKHUHDVRQVZK\WKHSUHVFULSWLRQLVQHFHVVDU\
2SLRLG&RQWUROOHG6XEVWDQFH3URWRFRO'HSDUWPHQWRI,QGXVWULDO$FFLGHQWV
$FXWH3DLQ'LVDOORZVLQLWLDWLQJWUHDWPHQWRIDFXWHSDLQZLWKORQJDFWLQJRUH[WHQGHGUHOHDVH
RSLRLGV
,QLWLDO3UHVFULSWLRQV,QLWLDOSUHVFULSWLRQVIRURSLRLGVDUHOLPLWHGWRQRPRUHWKDQGD\V
*HQHUDO/LPLWV$GRSWV&'&GRVDJHUHFRPPHQGDWLRQV
0LFKLJDQ
0LFKLJDQ0HGLFDLG
*HQHUDO/LPLWV0LFKLJDQ0HGLFDLGXSGDWHGWKHRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
+HDOWKFRQWUROOHGVXEVWDQFHVSUHVFULSWLRQIRURSLRLGVOLPLWIRUDFXWHSDLQDQGDOORZIRUWKHSDUWLDOILOOLQJ
RIFHUWDLQFRQWUROOHGVXEVWDQFHSUHVFULSWLRQVLIFRQVLVWHQWZLWKIHGHUDOODZ3XEOLF$FW
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$FXWH3DLQ%HJLQQLQJ-XO\LIDSUHVFULEHULVWUHDWLQJDSDWLHQWIRUDFXWHSDLQWKH
SUHVFULEHUVKDOOQRWSUHVFULEHWKHSDWLHQWPRUHWKDQDGD\VXSSO\RIDQRSLRLGZLWKLQDGD\
SHULRG
0LFKLJDQ0HGLFDLG
*HQHUDO/LPLWV0LFKLJDQ0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQHIRU
3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ)XUWKHUXSGDWHV
ZHUHPDGHWRRSLRLGTXDQWLW\OLPLWV
0LQQHVRWD
0LQQHVRWD0HGLFDLG
*HQHUDO/LPLWV0LQQHVRWD0HGLFDLGXSGDWHGWKHRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
/LPLWRQTXDQWLW\RIRSLDWHVSUHVFULEHGIRUDFXWHGHQWDODQGRSKWKDOPLFSDLQ6)1RVW6SHFLDO
6HVVLRQ&KDSWHU
'HQWLVWV:KHQXVHGIRUWKHWUHDWPHQWRIDFXWHGHQWDOSDLQSUHVFULSWLRQVIRURSLDWHRUQDUFRWLFSDLQ
UHOLHYHUVOLVWHGLQ6FKHGXOHV,,WKURXJK,9VKDOOQRWH[FHHGDIRXUGD\VXSSO\
2SWRPHWULVWV:KHQXVHGIRUWKHWUHDWPHQWRIDFXWHSDLQDVVRFLDWHGZLWKUHIUDFWLYHVXUJHU\
SUHVFULSWLRQVIRURSLDWHRUQDUFRWLFSDLQUHOLHYHUVOLVWHGLQ6FKHGXOHV,,WKURXJK,9VKDOOQRWH[FHHG
DIRXUGD\VXSSO\
0LQQHVRWD2SLRLG3UHVFULELQJ*XLGHOLQHV0LQQHVRWD'HSDUWPHQWRI+XPDQ6HUYLFHV0LQQHVRWD
'HSDUWPHQWRI+HDOWK
$FXWH3DLQ$YRLGSUHVFULELQJPRUHWKDQ00(RIORZGRVHVKRUWDFWLQJRSLRLGV/LPLWWKH
HQWLUHSUHVFULSWLRQWR00(QRW00(GD\/LPLWWKHLQLWLDODFXWHSUHVFULSWLRQWRQR
PRUHWKDQ00(XQOHVVFLUFXPVWDQFHVFOHDUO\ZDUUDQWDGGLWLRQDORSLRLGWKHUDS\
'HQWLVWV$YRLGSUHVFULELQJPRUHWKDQ00(WRWDOVXSSO\RIORZGRVHVKRUWDFWLQJRSLRLGV
IROORZLQJDGHQWDOSURFHGXUH
3RVW$FXWH3DLQ3UHVFULEHRSLRLGVLQPXOWLSOHVRIGD\VZLWKQRPRUHWKDQ00(SHUGD\
SHULRGDQGQRPRUHGLVSHQVHGWKDQWKHQXPEHURIGRVHVQHHGHG$YRLGSUHVFULELQJLQH[FHVVRI
00(FXPXODWLYHLQRUGHUWRUHGXFHWKHULVNRIFKURQLFRSLRLGXVHDQGRWKHURSLRLGUHODWHG
KDUPV
&KURQLF3DLQ8VHFDXWLRQZKHQSUHVFULELQJRSLRLGVDWDQ\GRVDJHDQGPDNHHYHU\HIIRUWWRNHHS
GDLO\GRVDJHXQGHU00(GD\5HHYDOXDWHWKHSDWLHQW¶VLQGLYLGXDOULVNVDQGEHQHILWRI
FRQWLQXHGWUHDWPHQWZKHQLQFUHDVLQJGRVDJH$YRLGLQFUHDVLQJGDLO\GRVDJHWRHTXDOWRRUJUHDWHU
WKDQ00(GD\&OLQLFLDQVZKRGHFLGHWRLQFUHDVHWKHGDLO\GRVDJHWRRUEH\RQGWKLVSRLQW
PXVWFDUHIXOO\GRFXPHQWWKDWWKHULVNVDQGEHQHILWVZHUHZHLJKWHGDQGEHQHILWVZDUUDQWWKHULVN
/LPLWWKHGXUDWLRQRIWKHSUHVFULSWLRQWRRQHPRQWKDQGSUHVFULEHVRWKDWWKHSUHVFULSWLRQGRHVQRW
HQGGXULQJDZHHNHQGRURQDKROLGD\
0LVVRXUL
02+HDOWK1HW0HGLFDLG
*HQHUDO/LPLWV02+HDOWK1HWPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVIRUWKHLUIHHIRUVHUYLFH
SURJUDPVLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
0RGLILHVSURYLVLRQVUHODWLQJWRKHDOWKFDUH6HFWLRQVDQG
$FXWH3DLQ/LPLWVFHUWDLQLQLWLDOSUHVFULSWLRQVRIRSLRLGFRQWUROOHGVXEVWDQFHVWRQRPRUHWKDQD
GD\VXSSO\IRUWKHWUHDWPHQWRIDFXWHSDLQ3ULRUWRSUHVFULELQJWKHRSLRLGDSUDFWLWLRQHUVKDOO
FRQVXOWZLWKWKHSDWLHQWUHJDUGLQJWKHTXDQWLW\RIWKHRSLRLGDQGWKHSDWLHQW VRSWLRQWRILOOWKH
SUHVFULSWLRQLQDOHVVHUTXDQWLW\DVZHOODVLQIRUPWKHSDWLHQWRIWKHULVNVDVVRFLDWHGZLWKWKH
SUHVFULEHGRSLRLG,ILQWKHSUDFWLWLRQHU
VPHGLFDOMXGJPHQWPRUHWKDQDGD\VXSSO\LVUHTXLUHG
WRWUHDWWKHSDWLHQWWKHSUDFWLWLRQHUPD\LVVXHDSUHVFULSWLRQIRUWKHTXDQWLW\QHHGHGDIWHUQRWLQJLQ
WKHSDWLHQW
VPHGLFDOUHFRUGWKHFRQGLWLRQWULJJHULQJWKHQHFHVVLW\IRUDJUHDWHUTXDQWLW\DQGWKDWD
QRQRSLRLGZDVQRWDSSURSULDWH&RQWDLQVH[FHSWLRQV
,PSOHPHQWHGE\&RQWUROOHG6XEVWDQFH*XLGHOLQHVIRU0LVVRXUL3UDFWLWLRQHUV'HSDUWPHQWRI
+HDOWKDQG6HQLRU6HUYLFHV%XUHDXRI1DUFRWLFVDQG'DQJHURXV'UXJV7KH0LVVRXUL
%XUHDXRI1DUFRWLFVDQG'DQJHURXV'UXJV%1''DUHSXEOLVKLQJWKLVJXLGHOLQHDVDUHDG\
UHIHUHQFHDQGUHYLHZRIWKHPRVWFRPPRQFRQWUROOHGVXEVWDQFHODZV7KLVJXLGHGRHVQRWDGGUHVV
HYHU\VLQJOHVWDWXWHDQGUHJXODWLRQEXWLWDGGUHVVHVWKHPRVWFRPPRQUHTXLUHPHQWVDQGTXHVWLRQV
IURPSUDFWLWLRQHUV7KHJXLGHOLQHFRYHUVVXEMHFWVUHODWHGWRSDLQDQG6FKHGXOH,,PHGLFDWLRQVVXFK
DVGRFXPHQWDWLRQVWRUDJHLQYHQWRU\SDFNDJLQJODEHOLQJVXSHUYLVLRQGLVSRVDOZULWWHQDQG
YHUEDOSUHVFULSWLRQVHOHFWURQLFSUHVFULELQJPXOWLSOHSUHVFULSWLRQVLQLWLDORSLDWHSUHVFULSWLRQVIRU
DFXWHSDLQSUHVFULELQJDXWKRULW\IRUPLGOHYHOSUDFWLWLRQHUVDQGPRUH
0RQWDQD
0RQWDQD0HGLFDLG
*HQHUDO/LPLWV0RQWDQD0HGLFDLGXSGDWHGWKHLURSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
0RQWDQD0HGLFDLG
*HQHUDO/LPLWV0RQWDQD0HGLFDLGXSGDWHGWKHLURSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
&KURQLF3DLQ'LVRUGHU0RQWDQD8WLOL]DWLRQDQG7UHDWPHQW*XLGHOLQHV'HSDUWPHQWRI/DERUDQG
,QGXVWU\(PSOR\PHQW5HODWLRQV'LYLVLRQ
*HQHUDO/LPLWV,WLVKLJKO\UHFRPPHQGHGWKDWSUHVFULEHUVRIRSLRLGVDPRQJRWKHUWKLQJV
SUHVFULEHWKHORZHVWSRVVLEOHHIIHFWLYHGRVH'RVHVRIRSLRLGVLQH[FHVVRIPJPRUSKLQH
HTXLYDOHQWKDYHEHHQREVHUYHGWREHDVVRFLDWHGZLWKLQFUHDVHGGXUDWLRQRIGLVDELOLW\HYHQZKHQ
DGMXVWHGIRULQMXU\VHYHULW\LQLQMXUHGZRUNHUVZLWKDFXWHORZEDFNSDLQDQGWKXVDQ\XVHDERYH
PJVKRXOGEHYHU\FORVHO\PRQLWRUHG'RVHVLQH[FHVVRIPJVKRXOGEHDYRLGHG
1HEUDVND
1HEUDVND3DLQ0DQDJHPHQW*XLGDQFH'RFXPHQW'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV
$FXWH3DLQ)RUPRVWLQMXULHVDQGPLQRUSURFHGXUHVHJGHQWDOH[WUDFWLRQVSRUWVLQMXULHV
SUHVFULEHQRPRUHWKDQDWKUHHGD\VXSSO\RUGRVHVRIDVKRUWDFWLQJRSLRLG)RUPRUHVHYHUH
LQMXULHVHJIUDFWXUHVSUHVFULEHQRPRUHWKDQDVHYHQGD\VXSSO\RIDVKRUWDFWLQJRSLRLG'R
QRWSUHVFULEHH[WHQGHGUHOHDVHRSLRLGVIRUDFXWHSDLQ
$FXWH3DLQ)ODUHVRI&KURQLF&RQGLWLRQV'RQRWXVHRSLRLGVIRUDFXWHIODUHVRIQRQVSHFLILF
PXVFXORVNHOHWDOSDLQKHDGDFKHVRUILEURP\DOJLD)RUDFXWHIODUHVRIRWKHUFKURQLFFRQGLWLRQV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
HJRVWHRDUWKULWLVVLFNOHFHOODQHPLDOLPLWSUHVFULELQJWRDWKUHHGD\VXSSO\RIDVKRUWDFWLQJ
RSLRLG,QUDUHLQVWDQFHVXSWRDVHYHQGD\VXSSO\PD\EHDSSURSULDWH
&KURQLF3DLQ'RQRWSUHVFULEHFKURQLFRSLRLGVIRUQRQVSHFLILFPXVFXORVNHOHWDOSDLQKHDGDFKHRU
ILEURP\DOJLD'RQRWFRPELQHRSLRLGVZLWKEHQ]RGLD]HSLQHVPXVFOHUHOD[DQWVRUVHGDWLYH
K\SQRWLFV$YRLGH[FHHGLQJPJGD\0(')RUSDWLHQWVZLWKRQHRUPRUHULVNIDFWRUVHJ
KLVWRU\RIVXEVWDQFHXVHGLVRUGHUWREDFFRXVHUVPHQWDOKHDOWKGLVRUGHUVFDQQDELVXVHGLVRUGHU
GRQRWSUHVFULEHPRUHWKDQPJGD\00(
'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV'LYLVLRQRI0HGLFDLGDQG/RQJ7HUP&DUH
*HQHUDO/LPLWV1HEUDVND0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRUHTXLUHWKDW0DQDJHG&DUH
2UJDQL]DWLRQVDGRSWWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ
3URYLGHUHTXLUHPHQWVIRURSLDWHDQGFRQWUROOHGVXEVWDQFHSUHVFULSWLRQV6HFWLRQ
,QLWLDO3UHVFULSWLRQV,QLWLDORSLDWHSUHVFULSWLRQVIRUFKLOGUHQVKRXOGQRWH[FHHGVHYHQGD\VIRUPRVW
VLWXDWLRQVDQGWZRRUWKUHHGD\VRIRSLDWHVZLOORIWHQEHVXIILFLHQW
*HQHUDO/LPLWV,IDSDWLHQWQHHGVPHGLFDWLRQEH\RQGWKUHHGD\VWKHSUHVFULEHUVKRXOGUHHYDOXDWH
WKHSDWLHQWSULRUWRLVVXLQJDQRWKHUSUHVFULSWLRQIRURSLDWHV$SUDFWLWLRQHUZKRLVSUHVFULELQJDQ
RSLDWHIRUDSDWLHQW\RXQJHUWKDQHLJKWHHQ\HDUVRIDJHIRURXWSDWLHQWXVHIRUDQDFXWHFRQGLWLRQ
VKDOOQRWSUHVFULEHPRUHWKDQDVHYHQGD\VXSSO\H[FHSWDVRWKHUZLVHSURYLGHG,ILQWKH
SURIHVVLRQDOPHGLFDOMXGJPHQWRIWKHSUDFWLWLRQHUPRUHWKDQDVHYHQGD\VXSSO\RIDQRSLDWHLV
UHTXLUHGWRWUHDWVXFKSDWLHQW
VPHGLFDOFRQGLWLRQRULVQHFHVVDU\IRUWKHWUHDWPHQWRISDLQ
DVVRFLDWHGZLWKDFDQFHUGLDJQRVLVRUIRUSDOOLDWLYHFDUHWKHSUDFWLWLRQHUPD\LVVXHDSUHVFULSWLRQ
IRUWKHTXDQWLW\QHHGHGWRWUHDWVXFKSDWLHQW
VPHGLFDOFRQGLWLRQRUSDLQ7KHSUDFWLWLRQHUVKDOO
GRFXPHQWWKHPHGLFDOFRQGLWLRQWULJJHULQJWKHSUHVFULSWLRQRIPRUHWKDQDVHYHQGD\VXSSO\RIDQ
RSLDWHLQWKHSDWLHQW
VPHGLFDOUHFRUGDQGVKDOOLQGLFDWHWKDWDQRQRSLDWHDOWHUQDWLYHZDVQRW
DSSURSULDWHWRDGGUHVVWKHPHGLFDOFRQGLWLRQ
,PSOHPHQWHGE\2SLDWHVOHJLVODWLYHILQGLQJVOLPLWDWLRQRQFHUWDLQSUHVFULSWLRQVSUDFWLWLRQHU
GXWLHV156
3UHIHUUHG'UXJ/LVWZLWK3ULRU$XWKRUL]DWLRQ&ULWHULD1HEUDVND0HGLFDLG
*HQHUDO/LPLWV6KRUWDFWLQJRSLRLGDQDOJHVLFVDUHOLPLWHGWRDPD[LPXPTXDQWLW\OLPLWRI
WDEOHWVFDSVXOHVSHUGD\V
,QLWLDO3UHVFULSWLRQV2SLDWHOLPLWVIRURSLDWHQDwYHSDWLHQWVZLOOEHOLPLWHGWRQRPRUHWKDQDGD\
VXSSO\QRPRUHWKDQ00(GD\ZLWKH[FHSWLRQV
1HEUDVND0HGLFDLG
&KURQLF3DLQ$QLQLWLDOOLPLWRI00(GDLO\ZLOOEHSXWLQSODFHLQ'HFHPEHURIIRU
1HEUDVND0HGLFDLGSDWLHQWVZLWKFKURQLFSDLQXQOHVVEHLQJWUHDWHGIRUDFWLYHFDQFHUHQUROOHGLQ
KRVSLFHRUUHFHLYLQJHQGRIOLIHFDUH&ODLPVIRUWRWDOGDLO\GRVHVRIPRUHWKDQ00(ZLOO
UHMHFWEHJLQQLQJ'HFHPEHUXQOHVVDSULRUDXWKRUL]DWLRQLVRQILOH1HEUDVND0HGLFDLG
SODQVWRORZHUWKHPD[LPXP00(WR
x 00(LQ-XQH
x 00(LQ'HFHPEHU
x 00(LQ-XQH
x 00(LQ'HFHPEHU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
x 00(LQ-XQH
1HYDGD
0HGLFDLG6HUYLFHV0DQXDO'LYLVLRQRI+HDOWK&DUH)LQDQFLQJDQG3ROLF\
,QLWLDO3UHVFULSWLRQV2SLRLGVDUHFRYHUHGZLWKRXWSULRUDXWKRUL]DWLRQIRULQLWLDOSUHVFULSWLRQVRI
GD\VRUOHVV
*HQHUDO/LPLWV2SLRLGVDUHRQO\FRYHUHGZLWKRXWSULRUDXWKRUL]DWLRQIRUDWRWDORIGD\
SUHVFULSWLRQVLQDQ\UROOLQJPRQWKSHULRGDQGIRUSUHVFULSWLRQVRIOHVVWKDQ00(GD\
&KURQLF3DLQ7RH[FHHGWKHJHQHUDOTXDQWLW\OLPLWVWKHSDWLHQWPXVWKDYHFKURQLFSDLQWKDWFDQQRW
EHFRQWUROOHGWKURXJKXVHRIQRQRSLRLGVWKHORZHVWHIIHFWLYHGRVHPXVWEHXVHGDQGDSDLQ
FRQWUDFWPXVWEHRQILOH
'LYLVLRQRI+HDOWK&DUH)LQDQFLQJDQG3ROLF\0HGLFDLG
*HQHUDO/LPLWV1HYDGD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
1HZ+DPSVKLUH
5HODWLYHWRUXOHPDNLQJIRUSUHVFULELQJFRQWUROOHGGUXJV&KDSWHU
*HQHUDO/LPLWV5HTXLUHVWKHERDUGRIPHGLFLQHWKHERDUGRIGHQWDOH[DPLQHUVWKHERDUGRI
QXUVLQJWKHERDUGRIUHJLVWUDWLRQLQRSWRPHWU\WKHERDUGRISRGLDWU\WKHQDWXURSDWKLFERDUGRI
H[DPLQHUVDQGWKHERDUGRIYHWHULQDU\PHGLFLQHWRDGRSWUXOHVIRUSUHVFULELQJFRQWUROOHGGUXJV
&RQWDLQVPDQGDWRU\VWDQGDUGVIRUVXFKUXOHVLQFOXGLQJUHTXLULQJWKHORZHVWHIIHFWLYHGRVDJHIRU
WKHIHZHVWQXPEHURIGD\V
0HG2SLRLG3UHVFULELQJ%RDUGRI0HGLFLQH
$FXWH3DLQ,QDQHPHUJHQF\GHSDUWPHQWXUJHQWFDUHVHWWLQJRUZDONLQFOLQLFDSUHVFULEHUVKDOO
SUHVFULEHPRUHWKDQWKHPLQLPXPDPRXQWRIRSLRLGVPHGLFDOO\QHFHVVDU\WRWUHDWWKHSDWLHQW¶V
PHGLFDOFRQGLWLRQ,QPRVWFDVHVDQRSLRLGSUHVFULSWLRQRIRUIHZHUGD\VLVVXIILFLHQWEXWD
OLFHQVHHVKDOOQRWSUHVFULEHIRUPRUHWKDQGD\V,ISUHVFULELQJDQRSLRLGIRUDFXWHSDLQWKDW
H[FHHGVDERDUGDSSURYHGOLPLWGRFXPHQWWKHPHGLFDOFRQGLWLRQDQGDSSURSULDWHFOLQLFDOUDWLRQDOH
LQWKHSDWLHQW¶VPHGLFDOUHFRUG,IRSLRLGVDUHLQGLFDWHGDQGDSSURSULDWHIRUSHUVLVWHQWXQUHVROYHG
DFXWHSDLQWKDWH[WHQGVEH\RQGDSHULRGRIGD\VWKHOLFHQVHHVKDOOFRQGXFWDQLQRIILFHIROORZ
XSZLWKWKHSDWLHQWSULRUWRLVVXLQJDQHZRSLRLGSUHVFULSWLRQ
&KURQLF3DLQ'RFXPHQWWKHFRQVLGHUDWLRQRIDFRQVXOWDWLRQZLWKDQDSSURSULDWHVSHFLDOLVWZKHQ
WKHSDWLHQWUHFHLYHVDPJPRUSKLQHHTXLYDOHQWGRVHGDLO\IRUORQJHUWKDQGD\V
1XU2SLRLG3UHVFULELQJ%RDUGRI1XUVLQJ
$FXWH3DLQ,QDQHPHUJHQF\GHSDUWPHQWXUJHQWFDUHVHWWLQJRUZDONLQFOLQLFDSUHVFULEHUVKDOO
SUHVFULEHPRUHWKDQWKHPLQLPXPDPRXQWRIRSLRLGVPHGLFDOO\QHFHVVDU\WRWUHDWWKHSDWLHQW¶V
PHGLFDOFRQGLWLRQ,QPRVWFDVHVDQRSLRLGSUHVFULSWLRQRIRUIHZHUGD\VLVVXIILFLHQWEXWD
OLFHQVHHVKDOOQRWSUHVFULEHIRUPRUHWKDQGD\V,ISUHVFULELQJDQRSLRLGIRUDFXWHSDLQWKDW
H[FHHGVDERDUGDSSURYHGOLPLWGRFXPHQWWKHPHGLFDOFRQGLWLRQDQGDSSURSULDWHFOLQLFDOUDWLRQDOH
LQWKHSDWLHQW¶VPHGLFDOUHFRUG,IRSLRLGVDUHLQGLFDWHGDQGDSSURSULDWHIRUSHUVLVWHQWXQUHVROYHG
DFXWHSDLQWKDWH[WHQGVEH\RQGDSHULRGRIGD\VWKHOLFHQVHHVKDOOFRQGXFWDQLQRIILFHIROORZ
XSZLWKWKHSDWLHQWSULRUWRLVVXLQJDQHZRSLRLGSUHVFULSWLRQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
&KURQLF3DLQ'RFXPHQWWKHFRQVLGHUDWLRQRIDFRQVXOWDWLRQZLWKDQDSSURSULDWHVSHFLDOLVWZKHQ
WKHSDWLHQWUHFHLYHVDPJPRUSKLQHHTXLYDOHQWGRVHGDLO\IRUORQJHUWKDQGD\V
1HZ-HUVH\
1HZ-HUVH\0HGLFDLG
*HQHUDO/LPLWV1HZ-HUVH\0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
5HTXLUHVKHDOWKLQVXUDQFHFRYHUDJHIRUWUHDWPHQWRIVXEVWDQFHXVHGLVRUGHUVSODFHVFHUWDLQUHVWULFWLRQVRQ
WKHSUHVFULSWLRQRIRSLRLGDQGFHUWDLQRWKHUGUXJVFRQFHUQVFRQWLQXLQJHGXFDWLRQUHODWHGWKHUHWR
3/&KDSWHU
,QLWLDO3UHVFULSWLRQV/LPLWVLQLWLDORSLRLGSUHVFULSWLRQVWRILYHGD\V
,PSOHPHQWHGE\/LPLWDWLRQVRQ3UHVFULELQJ$GPLQLVWHULQJRU'LVSHQVLQJRI
&RQWUROOHG6XEVWDQFHV6SHFLDO5HTXLUHPHQWVIRU0DQDJHPHQWRI$FXWHDQG&KURQLF3DLQ
'LYLVLRQRI&RQVXPHU$IIDLUV
1HZ-HUVH\0HGLFDLG
*HQHUDO/LPLWV1HZ-HUVH\0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
1HZ0H[LFR
5HFRPPHQGDWLRQV*RYHUQRU¶V3UHVFULSWLRQ'UXJ0LVXVHDQG2YHUGRVH3UHYHQWLRQDQG3DLQ
0DQDJHPHQW$GYLVRU\&RXQFLO
*HQHUDO/LPLWV3UDFWLWLRQHUVVKRXOGDGKHUHWRWKHVXPPDU\RIWKH&HQWHUVIRU'LVHDVH&RQWURODQG
3UHYHQWLRQ*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ3URYLGHUVVKRXOGQRWXVHWKH
*XLGHOLQHWRRYHUULGHDSURYLGHU¶VMXGJHPHQWUHJDUGLQJDVSHFLILFSDWLHQWEXWUDWKHUWRJXLGH
VNLOOIXODQGDSSURSULDWHSDLQPDQDJHPHQW7KHPHGLFDOSURYLGHUOLFHQVLQJERDUGVVKRXOGQRWXVH
WKH&'&*XLGHOLQHWRVHWVWULFWSROLF\RUWRHQIRUFHSUDFWLFHVWDQGDUGV
$FXWH3DLQ/LFHQVLQJHQWLWLHVVKRXOGSURPXOJDWHUXOHVUHTXLULQJSUDFWLWLRQHUVWROLPLWDQLQLWLDO
RSLRLGSUHVFULSWLRQIRUDFXWHSDLQWRQRPRUHWKDQDGD\VXSSO\IRUDVLQJOHSUHVFULSWLRQ
1HZ<RUN
3DLQ0DQDJHPHQW'UXJV6XEVFULEHU7UDLQLQJ&KDSWHU
$FXWH3DLQ5HVWULFWVLQLWLDORSLRLGSUHVFULSWLRQVIRUDFXWHSDLQWRVHYHQGD\V
6FKHGXOHGVXEVWDQFHVDGPLQLVWHULQJDQGGLVSHQVLQJE\SUDFWLWLRQHUV1<3XE+HDOWK
$FXWH3DLQ$SUDFWLWLRQHUPD\QRWSUHVFULEHPRUHWKDQDVHYHQGD\VXSSO\RIDQ\VFKHGXOH,,,,,
RU,9RSLRLGWRDQXOWLPDWHXVHUXSRQWKHLQLWLDOFRQVXOWDWLRQRUWUHDWPHQWRIVXFKXVHUIRUDFXWH
SDLQ 8SRQDQ\VXEVHTXHQWFRQVXOWDWLRQVIRUWKHVDPHSDLQWKHSUDFWLWLRQHUPD\LVVXHDQ\
DSSURSULDWHUHQHZDOUHILOORUQHZSUHVFULSWLRQIRUWKHRSLRLGRUDQ\RWKHUGUXJ
'HSDUWPHQWRI+HDOWK0HGLFDLG
$FXWH3DLQ(IIHFWLYH-XO\LQLWLDORSLRLGSUHVFULELQJIRUDFXWHSDLQLVOLPLWHGWRDVHYHQ
GD\VXSSO\SHU1HZ<RUN6WDWH3XEOLF+HDOWK/DZ6HFWLRQVHHDERYH7KH'HSDUWPHQW
RI+HDOWKZLOOFRPPXQLFDWHDGDWHLQWKHQHDUIXWXUHZKHQWKLVZLOOEHV\VWHPDWLFDOO\HQIRUFHGE\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
WKH0HGLFDLG)HHIRU6HUYLFH3URJUDP8QWLOVXFKWLPHWKDWWKH'HSDUWPHQWLVDEOHWRLPSOHPHQW
DQDXWRPDWHGVROXWLRQWRH[HPSWFRSD\PHQWVIRUVXFKVXEVHTXHQWRSLRLGSUHVFULSWLRQV,ID
SUHVFULEHULQLWLDWHVDVXEVHTXHQWSUHVFULSWLRQIRUWKHVDPHSDLQPHGLFDWLRQZLWKLQGD\VRIWKH
LQLWLDOGD\VXSSO\DQGWKHSKDUPDFLVWLVQRWLILHGDQGRUFRQILUPVWKLVXSRQUHYLHZLQJWKH
SDWLHQW¶VSUHVFULSWLRQKLVWRU\RUXWLOL]LQJ3UR'85HGLWLQJWKHIROORZLQJPD\EHXVHGWRH[HPSW
WKHFRSD\PHQWIRUWKHVXEVHTXHQWSUHVFULSWLRQ,Q1&3'3ILHOG(8HQWHUDYDOXH³´
([HPSW&RSD\DQGRU&RLQVXUDQFH$OWKRXJKSKDUPDFLVWVVKRXOGFRQWLQXHWRXVHDOORIWKHWRROV
DWWKHLUGLVSRVDOZKHQGLVSHQVLQJRSLRLGSUHVFULSWLRQVSKDUPDFLVWVDUHQRWUHTXLUHGWRYHULI\ZLWK
WKHSUHVFULEHUZKHWKHUDQRSLRLGSUHVFULSWLRQZULWWHQIRUJUHDWHUWKDQDGD\VXSSO\LVLQ
DFFRUGDQFHZLWKWKHDERYHUHIHUHQFHGVWDWXWRU\UHTXLUHPHQWV3KDUPDFLVWVPD\FRQWLQXHWR
GLVSHQVHRSLRLGVDVSUHVFULEHGFRQVLVWHQWZLWKFXUUHQWODZVUHJXODWLRQVDQG0HGLFDLGSROLFLHV
$PG9DULRXV/DZJHQHUDOO\%XGJHW&KDSWHU
*HQHUDO/LPLWV1RRSLRLGVVKDOOEHSUHVFULEHGWRDSDWLHQWLQLWLDWLQJRUEHLQJPDLQWDLQHGRQRSLRLG
WUHDWPHQWIRUSDLQZKLFKKDVODVWHGPRUHWKDQWKUHHPRQWKVRUSDVWWKHWLPHRIQRUPDOWLVVXH
KHDOLQJXQOHVVWKHPHGLFDOUHFRUGFRQWDLQVDZULWWHQWUHDWPHQWSODQWKDWIROORZVJHQHUDOO\
DFFHSWHGQDWLRQDOSURIHVVLRQDORUJRYHUQPHQWDOJXLGHOLQHV([FHSWLRQVDSSO\LQWKHFDVHRI
SDWLHQWVZKRDUHEHLQJWUHDWHGIRUFDQFHUWKDWLVQRWLQUHPLVVLRQZKRDUHLQKRVSLFHRURWKHUHQG
RIOLIHFDUHRUZKRVHSDLQLVEHLQJWUHDWHGDVSDUWRISDOOLDWLYHFDUHSUDFWLFHV
1RUWK&DUROLQD
6WUHQJWKHQ2SLRLG0LVXVH3UHYHQWLRQ6723$FW6/
,QLWLDO3UHVFULSWLRQV/LPLWVLQLWLDOSUHVFULSWLRQVRIDOOFRQWUROOHGVXEVWDQFHVLQ6FKHGXOHV,,
WKURXJK9WRQRPRUHWKDQDILYHGD\VXSSO\LIWKHSUHVFULSWLRQLVIRUSDLQZLWKH[FHSWLRQV
3ROLF\IRUWKHXVHRIRSLRLGVIRUWKHWUHDWPHQWRISDLQ1RUWK&DUROLQD0HGLFDO%RDUG
*HQHUDO/LPLWV,QRUGHUWRSURYLGHLWVOLFHQVHHVZLWKJXLGDQFHWKDWUHIOHFWVWKHPRVWFXUUHQW
PHGLFDODQGVFLHQWLILFUHVHDUFKDQGUHFRPPHQGHGSUDFWLFHVWKH%RDUGKDVGHFLGHGWRDGRSWDQG
HQGRUVHWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQZULWWHQDQGPDLQWDLQHGE\
WKH&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ³&'&´
1&0HGLFDLGDQG+HDOWK&KRLFH
*HQHUDO/LPLWV1RUWK&DUROLQD0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQH
IRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ8SGDWHVZHUH
DOVRPDGHWRRSLRLGTXDQWLW\OLPLWV
1RUWK'DNRWD
1RUWK'DNRWD0HGLFDLG
*HQHUDO/LPLWV1RUWK'DNRWD0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
1RUWK'DNRWD7UL5HJXODWRU3RVLWLRQ6WDWHPHQWRQ2SLRLG3UHVFULELQJ'LVSHQVLQJ%RDUGVRI0HGLFLQH
1XUVLQJDQG3KDUPDF\
*HQHUDO/LPLWV,QRUGHUWREDODQFHWKHULVNRISRWHQWLDOPLVXVHZLWKOHJLWLPDWHSDLQFRQWURODOO
KHDOWKFDUHSURIHVVLRQDOVVKRXOGDVWKHLUVFRSHRISUDFWLFHDOORZVXSKROGWKHLUSURIHVVLRQDO
REOLJDWLRQWRSXUVXHHGXFDWLRQDORSSRUWXQLWLHVWRIXUWKHUWKHLUNQRZOHGJHRQVWDQGDUGVRIFDUHDQG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
HYLGHQFHEDVHGDSSURDFKHVWRSDLQPDQDJHPHQWLQFOXGLQJEXWQRWOLPLWHGWRWKH&'&RSLRLG
SUHVFULELQJJXLGHOLQHV
2KLR
2KLR'HSDUWPHQWRI0HGLFDLG
*HQHUDO/LPLWV2KLR0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVRSLRLGFOLQLFDOFULWHULDDQGRSLRLG
VWHSWKHUDS\UHTXLUHPHQWVLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
&KDSWHU&RQWUROOHG6XEVWDQFHV6WDWH0HGLFDO%RDUG
&KURQLF3DLQ6WDUWLQJ'HFHPEHU2KLRSUHVFULEHUVZLOOQHHGWRIROORZQHZUHJXODWLRQV
ZKHQSUHVFULELQJRSLRLGVIRUWKHWUHDWPHQWRIORQJWHUPSDLQODVWLQJZHHNVRUPRUHDQG
VXEDFXWHSDLQODVWLQJEHWZHHQVL[DQGZHHNV3K\VLFLDQVDUHUHTXLUHGWRHQJDJHLQ
FRQYHUVDWLRQVZLWKSDWLHQWVEHIRUHVWDUWLQJRQORQJWHUPPHGLFDWLRQWUHDWPHQWWRHQVXUHRSLRLGV
DUHLPSURYLQJIXQFWLRQDQGWKHSDWLHQWLVRIIHUHGQRQRSLRLGWUHDWPHQWVZKHQDSSURSULDWH6HWV
UHTXLUHPHQWVWKDWSUHVFULEHUVPXVWIROORZDW00(GD\00(GD\DQG00(GD\
/LPLWVRSLRLGVLQH[FHVVRI00(GD\ZLWKRXWDUHFRPPHQGDWLRQIURPDERDUGFHUWLILHGSDLQ
VSHFLDOLVW
2NODKRPD
6RRQHU&DUH2NODKRPD0HGLFDLG
*HQHUDO/LPLWV2NODKRPD0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
2NODKRPD2SLRLG3UHVFULELQJ*XLGHOLQHV'HSDUWPHQWRI+HDOWK
$FXWH3DLQ:KHQRSLRLGVDUHVWDUWHGSURYLGHUVVKRXOGSUHVFULEHWKHORZHVWSRVVLEOHHIIHFWLYH
GRVH3UHVFULEHQRPRUHWKDQDVKRUWFRXUVHPRVWSDWLHQWVUHTXLUHRSLRLGVIRUQRPRUHWKDQWKUHH
GD\V/RQJDFWLQJRUH[WHQGHGUHOHDVHRSLRLGVVKRXOGQRWEHSUHVFULEHGIRUDFXWHSDLQ
&KURQLF3DLQ2SLRLGVVKRXOGEHLQLWLDWHGDVDVKRUWWHUPWULDOWRDVVHVVWKHHIIHFWVRIRSLRLG
WUHDWPHQWRQSDLQLQWHQVLW\IXQFWLRQDQGTXDOLW\RIOLIH7KHWULDOVKRXOGEHJLQZLWKDVKRUWDFWLQJ
RSLRLGPHGLFDWLRQ
5HJXODWLRQRIRSLRLGGUXJVSURYLGLQJOLPLWDWLRQVRQTXDQWLWLHVRIFHUWDLQSUHVFULSWLRQV6%
,QLWLDO3UHVFULSWLRQV7KHPHDVXUHUHVWULFWVLQLWLDOSUHVFULSWLRQVIRURSLRLGVWRDVHYHQGD\VXSSO\
*HQHUDO/LPLWV7KHPHDVXUHUHTXLUHVWKH,QVXUDQFH'HSDUWPHQWWRHYDOXDWHWKHHIIHFWRIWKHOLPLWV
RQSUHVFULSWLRQVRIRSLRLGPHGLFDWLRQRQFODLPVSDLGE\KHDOWKLQVXUDQFHFDUULHUV
2UHJRQ
2SLRLG3UHVFULELQJIRU&RQGLWLRQVRIWKH%DFNDQG6SLQH+HDOWK(YLGHQFH5HYLHZ&RPPLVVLRQ2UHJRQ
+HDOWK$XWKRULW\0HGLFDLG
$FXWH3DLQ)RUDFXWHSDLQILUVWZHHNVRSLRLGWUHDWPHQWLVRQO\DYDLODEOHZKHQWKHSUHVFULSWLRQ
LVGD\VRUOHVVIRUVKRUWDFWLQJRSLRLGVRQO\ZKHQRQHRUPRUHQRQRSLRLGVKDYHEHHQWULHGDQG
IRXQGLQHIIHFWLYHRUFRQWUDLQGLFDWHGDQGZKHQSUHVFULEHGZLWKDSODQWRNHHSDFWLYHDQGZLWK
FRQVLGHUDWLRQRIDGGLWLRQDOQRQSKDUPDFRORJLFDOWKHUDSLHV7KHUHFDQEHQRGRFXPHQWHGKLVWRU\RU
RSLRLGPLVXVHRUDEXVH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
6XEDFXWH3DLQ)RUSDLQDIWHUZHHNVDQGXSWRGD\VWUHDWPHQWZLWKRSLRLGVUHTXLUHV
GRFXPHQWHGHYLGHQFHRILPSURYHGIXQFWLRQRIDWOHDVWFRPSDUHGWREDVHOLQHFRSUHVFULSWLRQ
RIQRQSKDUPDFRORJLFDOWUHDWPHQWVDFXSXQFWXUHSK\VLFDOWKHUDS\HWFDQGHDFKSUHVFULSWLRQLV
IRUQRPRUHWKDQGD\VDQGIRUVKRUWDFWLQJRSLRLGVRQO\$IWHUGD\VRSLRLGVPD\EH
FRQVLGHUHG21/<ZKHQWKHUHLVDVLJQLILFDQWFKDQJHLQVWDWXVVXFKDVDFOLQLFDOO\VLJQLILFDQW
YHULILDEOHQHZLQMXU\RUVXUJHU\
&KURQLF3DLQ)RUSDWLHQWVZLWKFKURQLFSDLQIURPGLDJQRVHVRQWKHVHOLQHVFXUUHQWO\WUHDWHGZLWK
ORQJWHUPRSLRLGWKHUDS\RSLRLGVPXVWEHWDSHUHGRIIZLWKDWDSHURIDERXWSHUZHHN
UHFRPPHQGHG%\WKHHQGRIDOOSDWLHQWVFXUUHQWO\WUHDWHGZLWKORQJWHUPRSLRLGWKHUDS\
PXVWEHWDSHUHGRIIRIORQJWHUPRSLRLGVIRUGLDJQRVHVRQWKHVHOLQHV
2SLRLG3UHVFULELQJ*XLGHOLQHVIRU'HQWLVWV2UHJRQ+HDOWK$XWKRULW\3XEOLF+HDOWK'LYLVLRQ
'HQWLVWV5HFRPPHQGVQRWH[FHHGLQJDGD\RUWDEOHWVXSSO\
2UHJRQ2SLRLG3UHVFULELQJ*XLGHOLQHV5HFRPPHQGDWLRQVIRUWKH6DIH8VHRI2SLRLG0HGLFDWLRQV
2UHJRQ+HDOWK$XWKRULW\3XEOLF+HDOWK'LYLVLRQ
$FXWH3DLQ:KHQRSLRLGVDUHXVHGIRUDFXWHSDLQFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYH
GRVHRILPPHGLDWHUHOHDVHRSLRLGVDQGVKRXOGSUHVFULEHQRJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKH
H[SHFWHGGXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV7KUHHGD\VRUOHVVZLOORIWHQEH
VXIILFLHQWPRUHWKDQVHYHQGD\VZLOOUDUHO\EHQHHGHG
&KURQLF3DLQ:KHQVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQFOLQLFLDQVVKRXOGSUHVFULEH
LPPHGLDWHUHOHDVHRSLRLGVLQVWHDGRIH[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGV:KHQRSLRLGV
DUHVWDUWHGFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVDJH&OLQLFLDQVVKRXOGXVHFDXWLRQ
ZKHQSUHVFULELQJRSLRLGVDWDQ\GRVDJHVKRXOGFDUHIXOO\UHDVVHVVHYLGHQFHRILQGLYLGXDOEHQHILWV
DQGULVNVZKHQLQFUHDVLQJGRVDJHWRPRUSKLQHPLOOLJUDPHTXLYDOHQWV00(GD\DQGVKRXOG
DYRLGLQFUHDVLQJGRVDJHWR00(GD\RUFDUHIXOO\MXVWLI\DGHFLVLRQWRWLWUDWHGRVDJHWR
00(GD\
2UHJRQ&KURQLF2SLRLG3UHVFULELQJ*XLGHOLQHV2UHJRQ+HDOWK$XWKRULW\3XEOLF+HDOWK
'LYLVLRQ
$FXWH3DLQ:KHQRSLRLGVDUHXVHGIRUDFXWHSDLQFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYH
GRVHRILPPHGLDWHUHOHDVHRSLRLGVDQGVKRXOGSUHVFULEHQRJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKH
H[SHFWHGGXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV7KUHHGD\VRUOHVVZLOORIWHQEH
VXIILFLHQWPRUHWKDQVHYHQGD\VZLOOUDUHO\EHQHHGHG
&KURQLF3DLQ:KHQVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQFOLQLFLDQVVKRXOGSUHVFULEH
LPPHGLDWHUHOHDVHRSLRLGVLQVWHDGRIH[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGV:KHQRSLRLGV
DUHVWDUWHGFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVDJH&OLQLFLDQVVKRXOGXVHFDXWLRQ
ZKHQSUHVFULELQJRSLRLGVDWDQ\GRVDJHVKRXOGFDUHIXOO\UHDVVHVVHYLGHQFHRILQGLYLGXDOEHQHILWV
DQGULVNVZKHQLQFUHDVLQJGRVDJHWRPRUSKLQHPLOOLJUDPHTXLYDOHQWV00(GD\DQGVKRXOG
DYRLGLQFUHDVLQJGRVDJHWR00(GD\RUFDUHIXOO\MXVWLI\DGHFLVLRQWRWLWUDWHGRVDJHWR
00(GD\
2UHJRQ0HGLFDLG2UHJRQ+HDOWK$XWKRULW\3XEOLF+HDOWK'LYLVLRQ
*HQHUDO/LPLWV2UHJRQ0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQHVIRU
3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ)XUWKHUWKH\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
SODQQHGWRUHTXLUHWKDW0DQDJHG&DUH2UJDQL]DWLRQVDGRSWWKHJXLGHOLQH8SGDWHVZHUHDOVRPDGH
UHODWHGWRRSLRLGTXDQWLW\OLPLWV
2UHJRQ$FXWH2SLRLG3UHVFULELQJ*XLGHOLQHV2UHJRQ+HDOWK$XWKRULW\0HGLFDLG
$FXWH3DLQ3UHVFULEHUVDUHXUJHGWR³3UHVFULEHWKHORZHVWHIIHFWLYHGRVHRIVKRUWDFWLQJRSLRLGV
XVXDOO\IRUDGXUDWLRQRIOHVVWKDQGD\VLQFDVHVRIPRUHVHYHUHDFXWHSDLQOLPLWLQLWLDO
SUHVFULSWLRQWROHVVWKDQGD\V´
3HQQV\OYDQLD
6DIH(PHUJHQF\3UHVFULELQJ$FW$FW
*HQHUDO/LPLWV$KHDOWKFDUHSUDFWLWLRQHUPD\QRWSUHVFULEHDQRSLRLGGUXJSURGXFWWRDQ
LQGLYLGXDOVHHNLQJWUHDWPHQWLQDQHPHUJHQF\GHSDUWPHQWRUXUJHQWFDUHFHQWHURUZKRLVLQ
REVHUYDWLRQVWDWXVLQDKRVSLWDOLQDTXDQWLW\VXIILFLHQWWRWUHDWWKDWLQGLYLGXDOIRUPRUHWKDQVHYHQ
GD\V,ILQWKHSURIHVVLRQDOPHGLFDOMXGJPHQWRIDKHDOWKFDUHSUDFWLWLRQHUPRUHWKDQDVHYHQGD\
VXSSO\RIDQRSLRLGGUXJSURGXFWLVUHTXLUHGWRWUHDWDSDWLHQW
VDFXWHPHGLFDOFRQGLWLRQRULV
QHFHVVDU\IRUWKHWUHDWPHQWRISDLQDVVRFLDWHGZLWKDFDQFHUGLDJQRVLVRUIRUSDOOLDWLYHFDUHWKHQ
WKHKHDOWKFDUHSUDFWLWLRQHUPD\LVVXHDSUHVFULSWLRQIRUWKHTXDQWLW\QHHGHGWRWUHDWVXFKDFXWH
PHGLFDOFRQGLWLRQRUSDLQDVVRFLDWHGZLWKDFDQFHUGLDJQRVLVRUIRUSDOOLDWLYHFDUH7KHFRQGLWLRQ
WULJJHULQJSUHVFULSWLRQRIWKHRSLRLGGUXJSURGXFWXQGHUWKLVSDUDJUDSKVKDOOEHGRFXPHQWHGLQWKH
SDWLHQW
VPHGLFDOUHFRUGDQGWKHKHDOWKFDUHSUDFWLWLRQHUPXVWLQGLFDWHWKDWDQRQRSLRLGGUXJ
SURGXFWDOWHUQDWLYHZDVQRWDSSURSULDWHWRWUHDWWKHPHGLFDOFRQGLWLRQ$KHDOWKFDUHSUDFWLWLRQHULQ
DQHPHUJHQF\GHSDUWPHQWRUXUJHQWFDUHFHQWHURUZKRLVFDULQJIRUDSDWLHQWLQREVHUYDWLRQVWDWXV
PD\QRWZULWHDSUHVFULSWLRQUHILOOIRUDQRSLRLGGUXJSURGXFW
3UHVFULELQJ2SLRLGVWR0LQRUV$FW
*HQHUDO/LPLWV$SUHVFULEHUPD\QRWSUHVFULEHWRDPLQRUPRUHWKDQDVHYHQGD\VXSSO\RID
FRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLG,ILQWKHSURIHVVLRQDOPHGLFDOMXGJPHQWRIWKH
SUHVFULEHUPRUHWKDQDVHYHQGD\VXSSO\RIDFRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLGLV
UHTXLUHGWRVWDELOL]HWKHPLQRU
VDFXWHPHGLFDOFRQGLWLRQWKHSUHVFULEHUPXVWGRFXPHQWWKHDFXWH
PHGLFDOFRQGLWLRQLQWKHPLQRU
VUHFRUGZLWKWKHSUHVFULEHUDQGLQGLFDWHWKHUHDVRQZK\DQRQ
RSLRLGDOWHUQDWLYHLVQRWDSSURSULDWHWRDGGUHVVWKHDFXWHPHGLFDOFRQGLWLRQ7KHSUHVFULSWLRQPXVW
EHIRUPDQDJHPHQWRISDLQDVVRFLDWHGZLWKFDQFHUXVHLQSDOOLDWLYHRUKRVSLFHFDUHRU
PDQDJHPHQWRIFKURQLFSDLQQRWDVVRFLDWHGZLWKFDQFHU
*HULDWULF3DLQ2SLRLG8VHDQG6DIH3UHVFULELQJ'HSDUWPHQWRI+HDOWK
*HQHUDO/LPLWV*XLGHOLQHVUHODWHGWRRSLRLGXVHLQJHULDWULFSDWLHQWVFRYHULQJVXEMHFWVLQFOXGLQJ
DPRQJRWKHUWKLQJVDYRLGLQJXVHRIORQJDFWLQJRSLRLGVLQROGHUDGXOWVVLWXDWLRQVLQZKLFKORZ
GRVHRSLRLGVPD\EHLQGLFDWHGDQGLQLWLDWLQJORZHUGRVHVWKDQW\SLFDOO\XVHGLQDGXOWSRSXODWLRQV
3HQQV\OYDQLD0HGLFDO$VVLVWDQFH0HGLFDLG
*HQHUDO/LPLWV3HQQV\OYDQLD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
6DIH3UHVFULELQJRI2SLRLGVLQ3HGLDWULFDQG$GROHVFHQW3RSXODWLRQV'HSDUWPHQWRI+HDOWK
*HQHUDO/LPLWV2SLRLGDQDOJHVLFVVKRXOGEHUHVHUYHGIRUWKRVHFKLOGUHQDQGDGROHVFHQWVZLWK
PRGHUDWHWRVHYHUHSDLQ7KHRSLRLGVRIFKRLFHZKHQWUHDWLQJFKLOGUHQIRUPRGHUDWHWRVHYHUHSDLQ
DUHPRUSKLQHRUR[\FRGRQH6KRUWDFWLQJRSLRLGVVKRXOGEHXVHGILUVW/RQJHUDFWLQJRSLRLGV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
VKRXOGEHDYRLGHGDVWKH\SRVHJUHDWHUVDIHW\DQGPLVXVHULVNVDQGDUHUDUHO\QHHGHG&RGHLQHDQG
WUDPDGROVKRXOGQRWEHXVHG7KHVPDOOHVWHIIHFWLYHGRVHVKRXOGEHSUHVFULEHGZKHQDQRSLRLGLV
VHOHFWHGIRUXVH3UHVFULEHUVVKRXOGDQWLFLSDWHKRZORQJWKHSDWLHQWLVOLNHO\WRKDYHPRGHUDWHWR
VHYHUHSDLQUHTXLULQJRSLRLGWUHDWPHQWDQGGLVSHQVHRQO\HQRXJKRSLRLGPHGLFDWLRQWREHXVHG
GXULQJWKHH[SHFWHGSHULRGRISDLQ5HLWHUDWHV3HQQV\OYDQLDODZZKLFKOLPLWVWKHSUHVFULSWLRQVRI
RSLRLGVWRPLQRUVVHHDERYH
7KH6DIH3UHVFULELQJRI2SLRLGVLQ2UWKRSHGLFVDQG6SRUWV0HGLFLQH'HSDUWPHQWRI+HDOWK
*HQHUDO/LPLWV5HLWHUDWHV3HQQV\OYDQLDODZZKLFKOLPLWVWKHSUHVFULSWLRQVRIRSLRLGVWRPLQRUV
VHHDERYH
3HQQV\OYDQLD0HGLFDO$VVLVWDQFH0HGLFDLG
*HQHUDO/LPLWV3HQQV\OYDQLD0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
7UHDWPHQWRI3DLQLQDQ(PHUJHQW6HWWLQJ'HSDUWPHQWRI+HDOWK
*HQHUDO/LPLWV2SLRLGVVKRXOGEHXVHGLQWKHORZHVWHIIHFWLYHGRVHIRUWKHVKRUWHVWGXUDWLRQ
SRVVLEOHDVERWKGRVHDQGGXUDWLRQRIWKHUDS\DUHDVVRFLDWHGZLWKLQFUHDVHGULVNRIKDUP
+\GURFRGRQHDFHWDPLQRSKHQRIIHUVWKHORZHVWSRWHQF\RIDOOFRPPRQO\DYDLODEOHIRUPXODWLRQV
/RQJDFWLQJRUFRQWUROOHGUHOHDVHRSLRLGVVXFKDVH[WHQGHGUHOHDVHR[\FRGRQHIHQWDQ\OSDWFKHV
H[WHQGHGUHOHDVHPRUSKLQHDQGPHWKDGRQHVKRXOGQRWEHSUHVFULEHGIURPWKHHPHUJHQF\
GHSDUWPHQW
&KURQLF3DLQ&KURQLFRSLRLGWKHUDS\VKRXOGEHSURYLGHGE\DSURYLGHUZKRKDVWKHFOLQLFDO
H[SHUWLVHWRSURYLGHDSSURSULDWHPRQLWRULQJ&RQVLGHUDWLRQVKRXOGEHJLYHQIRUUHIHUUDOWRD
VSHFLDOLVWDVLQGLFDWHGE\WKHSDWLHQW
VFOLQLFDOQHHGVZKRPD\DVVLVWWKHSUHVFULELQJSK\VLFLDQLQ
SURSHUDGPLQLVWUDWLRQRIRSLRLGV
5KRGH,VODQG
8QLIRUP&RQWUROOHG6XEVWDQFHV$FWUHJXODWLRQ2I0DQXIDFWXULQJ'LVWULEXWLQJ3UHVFULELQJ
$GPLQLVWHULQJ$QG'LVSHQVLQJ&RQWUROOHG6XEVWDQFHV&KDSWHU
$FXWH3DLQ3URYLGHVOLPLWVRQDPRXQWVRIRSLRLGVWREHSUHVFULEHGDOORZLQJQRPRUHWKDQ
00(GD\IRUDPD[LPXPRIWRWDOGRVHVIRUDFXWHSDLQ
8QLIRUP&RQWUROOHG6XEVWDQFHV$FWUHJXODWLRQ2I0DQXIDFWXULQJ'LVWULEXWLQJ3UHVFULELQJ
$GPLQLVWHULQJ$QG'LVSHQVLQJ&RQWUROOHG6XEVWDQFHV&KDSWHU
$FXWH3DLQ3URYLGHVOLPLWVRQDPRXQWVRIRSLRLGVWREHSUHVFULEHGDOORZLQJQRPRUHWKDQ
00(GD\IRUDPD[LPXPRIWRWDOGRVHVIRUDFXWHSDLQ
5KRGH,VODQG0HGLFDLG
*HQHUDO/LPLWV5KRGH,VODQG0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
5KRGH,VODQG0HGLFDLG
*HQHUDO/LPLWV5KRGH,VODQG0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
6RXWK&DUROLQD
5HYLVHG-RLQW3DLQ0DQDJHPHQW*XLGHOLQHV%RDUGVRI'HQWLVWU\0HGLFDO([DPLQHUV1XUVLQJDQG
3KDUPDF\
*HQHUDO/LPLWV$GRSWVWKH&'&*XLGHOLQHVWRWKHH[WHQWWKHUHFRPPHQGDWLRQVGRQRW
FRQIOLFWZLWKVWDWHODZ
2SLRLGSUHVFULSWLRQVOLPLWVSUHVFULSWLRQUHSRUWFDUGV$FW1R
$FXWH3DLQ,QLWLDORSLRLGSUHVFULSWLRQVIRUDFXWHSDLQPDQDJHPHQWRUSRVWRSHUDWLYHSDLQ
PDQDJHPHQWPXVWQRWH[FHHGDVHYHQGD\VXSSO\H[FHSWZKHQFOLQLFDOO\LQGLFDWHGIRUFDQFHU
SDLQFKURQLFSDLQKRVSLFHFDUHSDOOLDWLYHFDUHPDMRUWUDXPDPDMRUVXUJHU\WUHDWPHQWRIVLFNOH
FHOOGLVHDVHWUHDWPHQWRIQHRQDWDODEVWLQHQFHV\QGURPHRUPHGLFDWLRQDVVLVWHGWUHDWPHQWIRU
VXEVWDQFHXVHGLVRUGHU8SRQDQ\VXEVHTXHQWFRQVXOWDWLRQIRUWKHVDPHSDLQWKHSUDFWLWLRQHUPD\
LVVXHDQ\DSSURSULDWHUHQHZDOUHILOORUQHZRSLRLGSUHVFULSWLRQ
2SLRLG3UHVFULELQJ/LPLWV6RXWK&DUROLQD'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV+HDOWK\
&RQQHFWLRQV0HGLFDLG
$FXWH3DLQ3UHVFULEHUVPXVWOLPLWWKHLQLWLDOSUHVFULELQJRIRSLRLGPHGLFDWLRQVIRUWKHWUHDWPHQWRI
DFXWHRUSRVWRSHUDWLYHSDLQWRWKHORZHVWHIIHFWLYHGRVHDQGIRUDTXDQWLW\QRPRUHWKDQQHFHVVDU\
IRUWKHH[SHFWHGGXUDWLRQRISDLQ3URYLGHUVPXVWQRWH[FHHGDILYHGD\VXSSO\RUPRUSKLQH
PLOOLJUDPHTXLYDOHQWV00(VGDLO\
&KURQLF3DLQ3URYLGHUVPXVWQRWH[FHHGDILYHGD\VXSSO\RUPRUSKLQHPLOOLJUDPHTXLYDOHQWV
00(VGDLO\H[FHSWLQWKHFDVHVRIFKURQLFSDLQFDQFHUSDLQSDLQUHODWHGWRVLFNOHFHOOGLVHDVH
KRVSLFHFDUHSDOOLDWLYHFDUHRUPHGLFDWLRQDVVLVWHGWUHDWPHQWIRUVXEVWDQFHXVHGLVRUGHU,ILQD
SUHVFULEHU¶VFOLQLFDOMXGJHPHQWDQLQLWLDOVXSSO\RIPRUHWKDQILYHGD\VRU00(VLVPHGLFDOO\
QHFHVVDU\WKHSUHVFULEHUPXVWGRFXPHQWWKDWQHHGLQWKHSDWLHQW¶VPHGLFDOUHFRUG
7HQQHVVHH
5HODWLYHWR'LVSHQVLQJ2SLRLGVRU%HQ]RGLD]HSLQHV3XE&K
*HQHUDO/LPLWV'LVDOORZVZLWKFHUWDLQH[FHSWLRQVSUHVFULEHUVRIRSLRLGVDQGEHQ]RGLD]HSLQHV
IURPGLVSHQVLQJRSLRLGVDQGEHQ]RGLD]HSLQHV
7HQQ&DUH0HGLFDLG
*HQHUDO/LPLWV7HQQ&DUHPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
SURJUDPLQ
7HQQ&DUHZLOOEHJLQLPSOHPHQWDWLRQRID0RUSKLQH0LOOLJUDP(TXLYDOHQW00(HGLW7HQQ&DUH
0HGLFDLG
*HQHUDO/LPLWV(IIHFWLYH6HSWHPEHU7HQQ&DUHZLOOEHJLQLPSOHPHQWDWLRQRID0RUSKLQH
0LOOLJUDP(TXLYDOHQW00(HGLWIRUDOODJHQWVLQWKH6KRUW$FWLQJ1DUFRWLFDQG/RQJ$FWLQJ
1DUFRWLF&ODVVHVRIWKH3'/7KHHGLWZLOODFFXPXODWH00(IRUDOOVKRUWDFWLQJQDUFRWLFVDQG
ORQJDFWLQJQDUFRWLFVDSDWLHQWLVFXUUHQWO\UHFHLYLQJDQGZLOOGHQ\FODLPVIRUSDWLHQWVSUHVFULEHGD
FXPXODWLYHGDLO\00(RIJUHDWHUWKDQ00(3ULRUDXWKRUL]DWLRQZLOOEHUHTXLUHGIRUSDWLHQWV
H[FHHGLQJWKHGDLO\00(OLPLW
$VHQDFWHGPDNHVYDULRXVFKDQJHVWRWKHUHTXLUHPHQWVIRUSUHVFULELQJGLVSHQVLQJDQGUHSRUWLQJRI
RSLRLGV3XEOLF&KDSWHU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*HQHUDO/LPLWV$VZLWKSULRUWRWKHSDVVDJHRI3XEOLF&KDSWHUDKHDOWKFDUHSUDFWLWLRQHUFDQ
WUHDWDSDWLHQWZLWKDWKUHHGD\VXSSO\RIDQRSLRLGDWDWRWDOGRVDJHRIPRUSKLQHPLOOLJUDP
HTXLYDOHQW00(WRWDOGRVDJHZLWKRXWDQ\QHZUHTXLUHPHQWV$KHDOWKFDUHSUDFWLWLRQHUPD\WUHDW
DSDWLHQWZLWKPRUHWKDQDWKUHHGD\VXSSO\RIDQRSLRLGLIWKHKHDOWKFDUHSUDFWLWLRQHUWUHDWVWKH
SDWLHQWZLWKQRPRUHWKDQRQHSUHVFULSWLRQIRUDQRSLRLGSHUHQFRXQWHUDQGPHHWVFHUWDLQ
HYDOXDWLRQDQGGRFXPHQWDWLRQUHTXLUHPHQWV,IDKHDOWKFDUHSUDFWLWLRQHUWUHDWVDSDWLHQWZLWKPRUH
WKDQDWKUHHGD\VXSSO\RIDQRSLRLGWKHKHDOWKFDUHSUDFWLWLRQHUPD\WUHDWWKHSDWLHQWZLWKQRPRUH
WKDQDWHQGD\VXSSO\DQGZLWKDGRVDJHWKDWGRHVQRWH[FHHGDWRWDORIDILYHKXQGUHG
PRUSKLQHPLOOLJUDPHTXLYDOHQWGRVH,QUDUHFDVHVDKHDOWKFDUHSUDFWLWLRQHUPD\WUHDWDSDWLHQW
ZLWKXSWRDWZHQW\GD\VXSSO\RIDQRSLRLGDQGZLWKDGRVDJHWKDWGRHVQRWH[FHHGDWRWDORIDQ
HLJKWKXQGUHGILIW\PRUSKLQHPLOOLJUDPHTXLYDOHQWGRVH,QFOXGHVH[HPSWLRQV
$VHQDFWHGUHTXLUHVDSUHVFULEHUWRSURYLGHFHUWDLQLQIRUPDWLRQSULRUWRSUHVFULELQJPRUHWKDQDWKUHHGD\
VXSSO\RIDQRSLRLGRUDQRSLRLGGRVDJHWKDWH[FHHGVDWRWDORIDPRUSKLQHPLOOLJUDPHTXLYDOHQWGRVH
WRDZRPDQRIFKLOGEHDULQJDJH3XEOLF&KDSWHU
*HQHUDO/LPLWV,IDKHDOWKFDUHSUHVFULEHUSUHVFULEHVPRUHWKDQDILYHGD\VXSSO\RIRSLRLGVWR
DQRQSUHJQDQWIHUWLOHZRPDQWKHSUHVFULEHUVKDOOLQIRUPWKHSDWLHQWRIWKHULVNRIIHWDOLQMXU\DQG
QHRQDWDODEVWLQHQFHV\QGURPHLQWKHHYHQWRISUHJQDQF\ZKLOHRQWKHUDS\
&KDQJHVWR3ULRU$XWKRUL]DWLRQ&ULWHULDDQGTXDQWLW\OLPLWVIRUWKH3UHIHUUHG'UXJ/LVW3'/7HQQ&DUH
0HGLFDLG
$FXWH3DLQ(IIHFWLYH-DQXDU\7HQQ&DUHKDVLPSOHPHQWHGDQHGLWRQDJHQWVLQWKHVKRUW
DFWLQJDQGORQJDFWLQJQDUFRWLFVFODVVHVRIWKH3'/WKDWZLOOLPSDFWDOOILUVWWLPHDQGQRQFKURQLF
RSLRLGXVHUV0HPEHUVFDQUHFHLYHRSLRLGFRYHUDJHXSWRGD\VLQDSHULRGDWWKHPD[LPXP
GRVDJHRI00(GD\$OOILUVWILOOVFULSWVLQDGD\SHULRGZLOOEHOLPLWHGWRDGD\VXSSO\
RIDVKRUWDFWLQJRSLRLGDWDPD[LPXPGRVHRI00(GD\$IWHUWKHILUVWILOOPHPEHUVFDQ
UHFHLYHDQDGGLWLRQDOGD\VDWDPD[LPXPRI00(GD\/LPLWHGXVHH[FHSWLRQVDUHDYDLODEOH
IRUWUHDWPHQWRISDLQGXHWRVHYHUHEXUQRUFRUURVLRQVLFNOHFHOOGLVRUGHURUWKRVHUHVLGLQJLQD
0HGLFDLGFHUWLILHGQXUVLQJIDFLOLW\ZKHQDQH[FHSWLRQDSSOLHVSDWLHQWVFDQUHFHLYHXSWRGD\V
ZLWKDPD[LPXPGRVHRI00(GD\$OOORQJDFWLQJQDUFRWLFVUHTXLUHSULRUDXWKRUL]DWLRQ
7H[DV
0LQLPXP5HTXLUHPHQWVIRUWKH7UHDWPHQWRI&KURQLF3DLQ7H[DV0HGLFDO%RDUG
*HQHUDO/LPLWV5HYLVHGSDLQPDQDJHPHQWUXOHVUHODWHGWRDPRQJRWKHUWKLQJVOLPLWDWLRQVRQZKR
PD\SUHVFULEHWRSDWLHQWVEHLQJWUHDWHGIRUSDLQDQGWKHOLPLWDWLRQRIRQO\RQHSKDUPDF\IRUD
SDWLHQWEHLQJWUHDWHGIRUSDLQ
7H[DV0HGLFDLG
*HQHUDO/LPLWV7H[DV0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
7H[DV0HGLFDLG
*HQHUDO/LPLWV7H[DV0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
0RUSKLQH(TXLYDOHQW'RVH/LPLWDWLRQVIRU7UDGLWLRQDO0HGLFDLGWR'HFUHDVH7H[DV0HGLFDLG9HQGRU
'UXJ3URJUDP
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*HQHUDO/LPLWV%HJLQQLQJ-DQ7H[DV++6ZLOOOLPLWWKHGDLO\PRUSKLQHHTXLYDOHQWGRVH
WKDWSHRSOHHQUROOHGLQWUDGLWLRQDO0HGLFDLGPD\UHFHLYH7KHLQLWLDOOLPLWZLOOEHVHWDW
PRUSKLQHPLOOLJUDPHTXLYDOHQWV00(GD\DQGZLOODSSO\WRDOORSLRLGSUHVFULSWLRQVZLWK
H[FHSWLRQVIRUWKRVHSHRSOHGLDJQRVHGZLWKFDQFHURUWKRVHUHFHLYLQJSDOOLDWLYHRUKRVSLFHFDUH
7KHPD[LPXPDOORZDEOHOLPLWZLOOGHFUHDVHRYHUWLPHDFFRUGLQJWRWKHIROORZLQJWHQWDWLYH
VFKHGXOH-DQXDU\00(GD\0D\00(GD\6HSWHPEHU
00(GD\-DQXDU\00(GD\&ODLPVWKDWH[FHHGWKH00(GD\OLPLWZLOOUHMHFW
GXULQJSKDUPDF\FODLPVSURFHVVLQJ3UHVFULELQJSURYLGHUVUHTXHVWLQJDQRYHUULGHIRUFODLPV
H[FHHGLQJWKHPD[LPXPDOORZDEOHOLPLWPXVWFRQWDFWWKH7H[DV3ULRU$XWKRUL]DWLRQ&DOO&HQWHUDW
3$7(;$6
8WDK
2SLRLG3UHVFULELQJ5HJXODWLRQV6HVVLRQ/DZ&KDSWHU
$FXWH3DLQ$SUHVFULSWLRQIRUD6FKHGXOH,,RU,,,RSLRLGWKDWLVLVVXHGIRUDQDFXWHFRQGLWLRQVKDOO
EHFRPSOHWHO\RUSDUWLDOO\ILOOHGLQDTXDQWLW\QRWWRH[FHHGDGD\VXSSO\DVGLUHFWHGRQWKHGDLO\
GRVDJHUDWHRIWKHSUHVFULSWLRQZLWKH[FHSWLRQV
,QVXUDQFH2SLRLG5HJXODWLRQ6HVVLRQ/DZ&KDSWHU
*HQHUDO/LPLWV7KLVELOODXWKRUL]HVFRPPHUFLDOLQVXUHUVWKHVWDWH0HGLFDLGSURJUDPZRUNHUV
FRPSHQVDWLRQLQVXUHUVDQGSXEOLFHPSOR\HHLQVXUHUVWRLPSOHPHQWSROLFLHVWRPLQLPL]HWKHULVNRI
SUHVFULELQJRSLRLGV
,PSOHPHQWHGE\
x 8WDK0HGLFDLG
*HQHUDO/LPLWV8WDK0HGLFDLGXSGDWHGWKHRSLRLGTXDQWLW\OLPLWVIRUWKHLU)HHIRU6HUYLFH
SURJUDPLQ
x 8WDK0HGLFDLG3URYLGHU0DQXDO'UXJVZLWK4XDQWLW\/LPLWV
*HQHUDO/LPLWV,QDGGLWLRQWRGUXJVSHFLILFOLPLWVIRXQGZLWKLQWKH3URYLGHU0DQXDO
FXPXODWLYHOLPLWVIRUDQ\FRPELQDWLRQRIVKRUWDFWLQJRSLRLGVDQGRURSLRLG$3$3
FRPELQDWLRQSURGXFWVLVWDEOHWVSHUGD\VLQGHSHQGHQWRIORQJDFWLQJRSLRLG
DFFXPXODWLRQ,QDGGLWLRQWRWKHGUXJVSHFLILFOLPLWVFXPXODWLYHOLPLWVIRUDQ\
FRPELQDWLRQRIORQJDFWLQJRSLRLGVLVWDEOHWVSHUGD\VLQGHSHQGHQWRIVKRUWDFWLQJ
DQGRURSLRLG$3$3FRPELQDWLRQSURGXFWDFFXPXODWLRQ7KHFXPXODWLYHOLPLWPD\EH
RYHUULGGHQLIWKHSUHVFULEHUZULWHVDYDOLG,&'FRGHIRUFDQFHURQWKHIDFHRIWKH
SUHVFULSWLRQ)HQWDQ\OLVPXWXDOO\H[FOXVLYHZLWKPHWKDGRQHDQGDOORWKHUORQJDFWLQJ
RSLRLGV0HWKDGRQHLVPXWXDOO\H[FOXVLYHZLWKIHQWDQ\ODQGDOORWKHUORQJDFWLQJRSLRLGV
$OORWKHURSLRLGVDUHQRWPXWXDOO\H[FOXVLYHZLWKHDFKRWKHU
,QLWLDO3UHVFULSWLRQV,QLWLDOSUHVFULSWLRQVIRURYHUDGD\VXSSO\UHTXLUHSULRU
DXWKRUL]DWLRQ
x ,QLWLDO3UHVFULSWLRQVRI6KRUW$FWLQJ2SLDWHV3UHVFULEHGE\'HQWLVWV8WDK0HGLFDLG
'HQWLVWV(IIHFWLYH-XO\8WDK0HGLFDLGZLOOUHVWULFWWKHLQLWLDOILOORIVKRUWDFWLQJ
RSLDWHVWRQRPRUHWKDQDGD\VXSSO\ZKHQSUHVFULEHGE\DGHQWLVW:KHQDFODLPIRUD
VKRUWDFWLQJRSLDWHLVVXEPLWWHGWR8WDK0HGLFDLGWKHSKDUPDF\FODLPVSURFHVVLQJV\VWHP
ZLOOGHWHUPLQHZKHWKHUWKHPHPEHUKDVKDGDSUHVFULSWLRQIRUWKHVDPHPHGLFDWLRQLQWKH
SUHYLRXVGD\V,IWKHPHPEHUKDVQRWKDGDFODLPIRUWKHVDPHPHGLFDWLRQLQWKH
SUHYLRXVGD\VWKHV\VWHPZLOOWUHDWWKHFODLPDVDQLQLWLDOILOODQGDOORZQRPRUHWKDQD
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
GD\VXSSO\,IDFODLPKDVEHHQILOOHGIRUWKHPHPEHUIRUWKHVDPHPHGLFDWLRQLQWKH
SUHYLRXVGD\VWKHQWKHFODLPVSURFHVVLQJV\VWHPZLOODOORZWKHFODLPWRSURFHVVIRUXS
WRDGD\VXSSO\KRZHYHUWKHFODLPZLOOEHVXEMHFWWRDOOOLPLWDWLRQVDQGUHVWULFWLRQV
LQFOXGLQJEXWQRWOLPLWHGWRHDUO\UHILOOVDQGTXDQWLW\OLPLWV
8WDK&OLQLFDO*XLGHOLQHVRQ3UHVFULELQJ2SLRLGVIRU7UHDWPHQWRI3DLQ8WDK'HSDUWPHQWRI+HDOWKDQG
8WDK0HGLFDO$VVRFLDWLRQ
$FXWH3DLQ:KHQRSLRLGVDUHLQGLFDWHGIRUWKHWUHDWPHQWRIDFXWHSDLQSUHVFULEHLPPHGLDWH
UHOHDVHVKRUWDFWLQJ,56$RSLRLGV([WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGVLQFOXGLQJ
PHWKDGRQHVKRXOGUDUHO\LIHYHUEHSUHVFULEHGIRUDFXWHSDLQLQFOXGLQJSRVWRSHUDWLYHSDLQ
:KHQRSLRLGPHGLFDWLRQVDUHSUHVFULEHGIRUWUHDWPHQWRIDFXWHSDLQSUHVFULEHUVVKRXOGSUHVFULEH
WKHORZHVWHIIHFWLYHGRVHDQGQRPRUHWKDQWKHQXPEHUQHHGHGIRUWKHXVXDOGXUDWLRQRISDLQ
DVVRFLDWHGZLWKWKDWFRQGLWLRQXVXDOO\GD\VDQGUDUHO\PRUHWKDQVHYHQGD\V8WDKODZVWDWHV
³DQRSLDWH«LVVXHGIRUDQDFXWHFRQGLWLRQVKDOOEHFRPSOHWHO\RUSDUWLDOO\ILOOHGLQDTXDQWLW\QRWWR
H[FHHGDVHYHQGD\VXSSO\DVGLUHFWHGRQWKHGDLO\GRVDJHUDWHRISUHVFULSWLRQ´
&KURQLF3DLQ$QRSLRLGWULDOVKRXOGEHJLQZLWKLPPHGLDWHUHOHDVHVKRUWDFWLQJ,56$RSLRLG
PHGLFDWLRQ(5/$RSLRLGVVKRXOGEHUHVHUYHGIRUVHYHUHFRQWLQXRXVSDLQDQGVKRXOGEH
FRQVLGHUHGRQO\IRUSDWLHQWVZKRKDYHUHFHLYHG,56$RSLRLGVGDLO\IRUDWOHDVWRQHZHHN,QLWLDO
WUHDWPHQWVKRXOGQRWXVHPHWKDGRQHIHQWDQ\ORUWKHFRPELQDWLRQRIRSLRLGVDQGEHQ]RGLD]HSLQHV
:KHQRSLRLGVDUHSUHVFULEHGIRUWKHWUHDWPHQWRIFKURQLFSDLQSUHVFULEHUVVKRXOGSUHVFULEHWKH
ORZHVWHIIHFWLYHGRVH3UHVFULEHUVVKRXOGXVHFDXWLRQZKHQSUHVFULELQJRSLRLGVDWDQ\GRVDJH
VKRXOGFDUHIXOO\UHDVVHVVHYLGHQFHRILQGLYLGXDOEHQHILWVDQGULVNVZKHQLQFUHDVLQJGRVDJHWR!
PRUSKLQHPLOOLJUDPHTXLYDOHQWV00(GD\DQGVKRXOGDYRLGLQFUHDVLQJGRVDJHWR!RU
FDUHIXOO\MXVWLI\DGHFLVLRQWRWLWUDWHGRVDJHWR!00(GD\
9HUPRQW
$Q$FWUHODWLQJWR&RPEDWLQJ2SLRLG$EXVHLQ9HUPRQW$FW
*HQHUDO/LPLWV'LUHFWVWKH&RPPLVVLRQHURI+HDOWKWRDGRSWUXOHVRQSUHVFULELQJRSLRLGVDIWHU
FRQVXOWLQJZLWKWKH&RXQFLOZKLFKPD\LQFOXGHQXPEHUDQGWLPHOLPLWVRQSLOOVSUHVFULEHG
LQFOXGLQJDPD[LPXPQXPEHURISLOOVWREHSUHVFULEHGIROORZLQJPLQRUPHGLFDOSURFHGXUHV
,PSOHPHQWHGE\5XOHV*RYHUQLQJWKH3UHVFULELQJRI2SLRLGVIRU3DLQ'HSDUWPHQWRI+HDOWK
x ,QLWLDO3UHVFULSWLRQV7KHSUHVFULSWLRQOLPLWVIRUDFXWHSDLQRQO\DSSO\WRWKHILUVW
SUHVFULSWLRQZULWWHQIRUDJLYHQFRXUVHRIWUHDWPHQWDQGGRQRWDSSO\WRUHQHZDOVRUUHILOOV
x *HQHUDO/LPLWV(VWDEOLVKHVYDULRXVH[WUHPHO\VSHFLILFDQGGHWDLOHGOLPLWVIRURSLRLGV
ZKHQXVHGWRWUHDWPLQRUSDLQPRGHUDWHSDLQVHYHUHSDLQDQGH[WUHPHSDLQ
9HUPRQW0HGLFDLG
*HQHUDO/LPLWV9HUPRQW0HGLFDLGXSGDWHGWKHRSLRLGTXDQWLW\OLPLWVIRUWKHLU)HHIRU6HUYLFH
SURJUDPLQ
9LUJLQLD
9LUJLQLD'HSDUWPHQWRI0HGLFDO$VVLVWDQFH6HUYLFHV0HGLFDLG
*HQHUDO/LPLWV9LUJLQLD0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU
&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP8SGDWHVZHUHDOVRPDGHWRRSLRLGTXDQWLW\OLPLWV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
5HJXODWLRQV*RYHUQLQJ3UHVFULELQJRI2SLRLGVDQG%XSUHQRUSKLQH'HSDUWPHQWRI+HDOWK3URIHVVLRQV
$FXWH3DLQ,QLWLDWLRQRIRSLRLGWUHDWPHQWIRUSDWLHQWVZLWKDFXWHSDLQVKDOOEHZLWKVKRUWDFWLQJ
RSLRLGV$SUHVFULEHUSURYLGLQJWUHDWPHQWIRUDFXWHSDLQVKDOOQRWSUHVFULEHDFRQWUROOHGVXEVWDQFH
FRQWDLQLQJDQRSLRLGLQDTXDQWLW\WKDWH[FHHGVDVHYHQGD\VXSSO\ZLWKH[FHSWLRQV$QRSLRLG
SUHVFULEHGDVSDUWRIWUHDWPHQWIRUDVXUJLFDOSURFHGXUHVKDOOEHIRUQRPRUHWKDQFRQVHFXWLYH
GD\VZLWKH[FHSWLRQV7KHSUDFWLWLRQHUVKDOOFDUHIXOO\FRQVLGHUDQGGRFXPHQWLQWKHPHGLFDO
UHFRUGWKHUHDVRQVWRH[FHHG00(GD\3ULRUWRH[FHHGLQJ00(GD\WKHSUDFWLWLRQHUVKDOO
GRFXPHQWLQWKHPHGLFDOUHFRUGWKHUHDVRQDEOHMXVWLILFDWLRQIRUVXFKGRVHVRUUHIHUWRRUFRQVXOW
ZLWKDSDLQPDQDJHPHQWVSHFLDOLVW1DOR[RQHVKDOOEHSUHVFULEHGIRUDQ\SDWLHQWZKHQULVNIDFWRUV
RISULRURYHUGRVHVXEVWDQFHDEXVHGRVHVLQH[FHVVRI00(GD\RUFRQFRPLWDQW
EHQ]RGLD]HSLQHLVSUHVHQW
&KURQLF3DLQ,QLQLWLDWLQJDQGWUHDWLQJZLWKDQRSLRLGWKHSUDFWLWLRQHUVKDOODPRQJRWKHUWKLQJV
&DUHIXOO\FRQVLGHUDQGGRFXPHQWLQWKHPHGLFDOUHFRUGWKHUHDVRQVWRH[FHHG00(GD\
3ULRUWRH[FHHGLQJ00(GD\WKHSUDFWLWLRQHUVKDOOGRFXPHQWLQWKHPHGLFDOUHFRUGWKH
UHDVRQDEOHMXVWLILFDWLRQIRUVXFKGRVHVRUUHIHUWRRUFRQVXOWZLWKDSDLQPDQDJHPHQWVSHFLDOLVW
3UHVFULEHQDOR[RQHIRUDQ\SDWLHQWZKHQULVNIDFWRUVRISULRURYHUGRVHVXEVWDQFHDEXVHGRVHV
LQH[FHVVRI00(GD\RUFRQFRPLWDQWEHQ]RGLD]HSLQHLVSUHVHQW
9LUJLQLD'HSDUWPHQWRI0HGLFDO$VVLVWDQFH6HUYLFHV0HGLFDLG
*HQHUDO/LPLWV9LUJLQLD0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
:DVKLQJWRQ
&RQFHUQLQJRSLRLGWUHDWPHQWSURJUDPV&KDSWHU
*HQHUDO/LPLWV5HTXLUHVWKHYDULRXVOLFHQVLQJERDUGVDQGFRPPLVVLRQVWRDGRSWUXOHVHVWDEOLVKLQJ
UHTXLUHPHQWVIRUSUHVFULELQJRSLRLGGUXJV6XFKUXOHVPD\FRQWDLQH[HPSWLRQVEDVHGRQWKH
DPRXQWRIRSLRLGVSUHVFULEHGDPRQJRWKHUWKLQJV,QGHYHORSLQJWKHUXOHVWKHFRPPLVVLRQPXVW
FRQVLGHUWKHDJHQF\PHGLFDOGLUHFWRUV
JURXSDQGFHQWHUVIRUGLVHDVHFRQWUROJXLGHOLQH
,PSOHPHQWHGE\
:653RGLDWULF0HGLFDO%RDUG
:651XUVLQJ&DUH4XDOLW\$VVXUDQFH&RPPLVVLRQ
:65%RDUGRI2VWHRSDWKLF0HGLFLQHDQG6XUJHU\
:65'HQWDO4XDOLW\$VVXUDQFH&RPPLVVLRQ
$FXWH3DLQ,IWKHSUHVFULEHUSUHVFULEHVRSLRLGVIRUHIIHFWLYHSDLQFRQWUROIRUDFXWHQRQRSHUDWLYH
SDLQVXFKSUHVFULSWLRQPXVWQRWEHLQDJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKHH[SHFWHGGXUDWLRQRI
SDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV$WKUHHGD\VXSSO\RUOHVVZLOORIWHQEHVXIILFLHQWPRUH
WKDQDVHYHQGD\VXSSO\ZLOOUDUHO\EHQHHGHG7KHSUHVFULEHUVKDOOQRWSUHVFULEHEH\RQGDVHYHQ
GD\VXSSO\ZLWKRXWFOLQLFDOGRFXPHQWDWLRQLQWKHSDWLHQWUHFRUGWRMXVWLI\WKHQHHGIRUVXFKD
TXDQWLW\
,IWKHSUHVFULEHUSUHVFULEHVRSLRLGVIRUHIIHFWLYHSDLQFRQWUROIRUDFXWHSHULRSHUDWLYHSDLQVXFK
SUHVFULSWLRQPXVWQRWEHLQDJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKHH[SHFWHGGXUDWLRQRISDLQVHYHUH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
HQRXJKWRUHTXLUHRSLRLGV$WKUHHGD\VXSSO\RUOHVVZLOORIWHQEHVXIILFLHQWPRUHWKDQDVHYHQ
GD\VXSSO\ZLOOUDUHO\EHQHHGHG7KHSUHVFULEHUVKDOOQRWSUHVFULEHEH\RQGDIRXUWHHQGD\VXSSO\
IURPWKHWLPHRIGLVFKDUJHZLWKRXWFOLQLFDOGRFXPHQWDWLRQLQWKHSDWLHQWUHFRUGWRMXVWLI\WKHQHHG
IRUVXFKDTXDQWLW\)RUPRUHVSHFLILFEHVWSUDFWLFHVWKHSUHVFULEHUPD\UHIHUWRFOLQLFDOSUDFWLFH
JXLGHOLQHVLQFOXGLQJEXWQRWOLPLWHGWRWKRVHSURGXFHGE\WKHDJHQF\PHGLFDOGLUHFWRUV
JURXSWKH
&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQRUWKH%UHH&ROODERUDWLYH
6XEDFXWH3DLQ,IWKHSUHVFULEHUSUHVFULEHVRSLRLGVIRUHIIHFWLYHSDLQFRQWUROVXFKSUHVFULSWLRQ
VKDOOEHLQQRJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKHH[SHFWHGGXUDWLRQRISDLQVHYHUHHQRXJKWR
UHTXLUHRSLRLGV'XULQJWKHVXEDFXWHSKDVHWKHSUHVFULEHUVKDOOQRWSUHVFULEHEH\RQGDIRXUWHHQ
GD\VXSSO\RIRSLRLGVZLWKRXWFOLQLFDOGRFXPHQWDWLRQWRMXVWLI\WKHQHHGIRUVXFKDTXDQWLW\
&KURQLF3DLQ7KHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGLVRQHKXQGUHGWZHQW\PLOOLJUDPV0('SHU
GD\8QOHVVWKHFRQVXOWDWLRQLVH[HPSWXQGHU:$&RUDSRGLDWULF
SK\VLFLDQZKRSUHVFULEHVDGRVDJHDPRXQWDWRUDERYHWKHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGPXVW
FRPSO\ZLWKWKHSDLQPDQDJHPHQWVSHFLDOLVWFRQVXOWDWLRQUHTXLUHPHQWVGHVFULEHGLQ:$&
+&$WRLPSOHPHQWRSLRLGFOLQLFDOSROLF\IRU$SSOH+HDOWK0HGLFDLGRQ1RY:DVKLQJWRQ6WDWH
+HDOWK&DUH$XWKRULW\0HGLFDLG3XEOLF(PSOR\HHV
$FXWH3DLQ/LPLWVWKHTXDQWLW\RIRSLRLGVWKDWFDQEHSUHVFULEHGWRRSLDWHQDwYHSDWLHQWVIRU
QRQFDQFHUSDLQ7KHOLPLWVIRUQHZRSLRLGSUHVFULSWLRQVZLOOEH1RPRUHWKDQGRVHV
DSSUR[LPDWHO\DGD\VXSSO\IRUSDWLHQWVDJHRU\RXQJHUDQG1RPRUHWKDQGRVHV
DSSUR[LPDWHO\DGD\VXSSO\IRUSDWLHQWVDJHRUROGHU3UHVFULEHUVFDQRYHUULGHWKHVHOLPLWVLI
WKH\IHHOLWLVPHGLFDOO\QHFHVVDU\E\W\SLQJ³([HPSW´LQWKHWH[WRIWKHSUHVFULSWLRQ
&KURQLF3DLQ$WWKHSRLQWRIWUDQVLWLRQIURPDFXWHWRFKURQLFRSLRLGWUHDWPHQWGHILQHGDVVL[
ZHHNVRIWKHUDS\WKHSROLF\UHTXLUHVSUHVFULEHUVWRDWWHVWWKH\DUHIROORZLQJEHVWSUDFWLFHVIRU
RSLRLGSUHVFULELQJ3KDUPDFLHVVKRXOGQRWWXUQDZD\SDWLHQWVZLWKSUHVFULSWLRQVDERYHWKHTXDQWLW\
OLPLWV3UHVFULSWLRQVWKDWUHMHFWIRUEHLQJRYHUWKHDOORZHGOLPLWIRUDFXWHXVHFDQEHGLVSHQVHGDVD
SDUWLDOILOOXSWRWKDWOLPLW$OWHUQDWLYHO\SKDUPDFLHVFDQFDOOSUHVFULEHUVWRVHHLIDQH[HPSWLRQRU
RWKHURYHUULGHLVDSSURSULDWH/RQJDFWLQJRSLRLGVDUHRQO\DSSURYHGZKHQRQHRIWKHVHVLWXDWLRQV
H[LVWV7KHSDWLHQWLVJUDQGIDWKHUHGDOUHDG\RQFKURQLFRSLRLGVEHIRUH1RYHPEHU7KH
SDWLHQWLVXQGHUJRLQJDFWLYHFDQFHUWUHDWPHQW7KHSDWLHQWLVLQKRVSLFHSDOOLDWLYHFDUHRUHQGRI
OLIHFDUH3UHVFULEHUKDVIROORZHGWKH(;(037SURFHVV3UHVFULEHUKDVREWDLQHGSULRU
DXWKRUL]DWLRQIROORZLQJGD\VRIWKHUDS\
'HQWDO*XLGHOLQHRQ3UHVFULELQJ2SLRLGVIRU$FXWH3DLQ0DQDJHPHQW$JHQF\0HGLFDO'LUHFWRUV¶*URXS
'U5REHUW%UHH&ROODERUDWLYH
'HQWLVWV6HWVYDULRXVRSLRLGOLPLWVGHSHQGLQJXSRQWKHW\SHRISURFHGXUHDQGH[SHFWHGUHFRYHU\
WLPH)RUH[SHFWHGUDSLGUHFRYHU\LIRSLRLGVDUHQHFHVVDU\SUHVFULEHGD\VHJWRSLOOV
RIVKRUWDFWLQJRSLRLGVLQFRPELQDWLRQZLWKDQ16$,'RUDFHWDPLQRSKHQIRUVHYHUHSDLQ
3UHVFULEHWKHORZHVWHIIHFWLYHGRVHVWUHQJWK)RUH[SHFWHGPHGLXPWHUPUHFRYHU\LIRSLRLGVDUH
QHFHVVDU\SUHVFULEHGD\VHJXSWRSLOOVRIVKRUWDFWLQJRSLRLGVIRUVHYHUHSDLQDQG
SUHVFULEHWKHORZHVWHIIHFWLYHGRVHVWUHQJWK)RUH[SHFWHGORQJHUWHUPUHFRYHU\LIRSLRLGVDUH
QHFHVVDU\SUHVFULEHGD\VRIVKRUWDFWLQJRSLRLGVIRUVHYHUHSDLQ3UHVFULEHWKHORZHVW
HIIHFWLYHGRVHVWUHQJWK3DWLHQWVVKRXOGEHUHHYDOXDWHGEHIRUHUHILOOLQJRSLRLGVDQGWDSHUHGRII
RSLRLGVZLWKLQZHHNVDIWHUVXUJHU\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
:DVKLQJWRQ(PHUJHQF\'HSDUWPHQW2SLRLG3UHVFULELQJ*XLGHOLQHV'HSDUWPHQWRI+HDOWK(PHUJHQF\
'HSDUWPHQW2SLRLG$EXVH:RUN*URXS
$FXWH3DLQ3UHVFULSWLRQVIRURSLRLGSDLQPHGLFDWLRQIURPWKH('IRUDFXWHLQMXULHVVXFKDV
IUDFWXUHGERQHVLQPRVWFDVHVVKRXOGQRWH[FHHGSLOOV
&KURQLF3DLQ3UHVFULELQJSDLQPHGLFLQHIRUFKURQLFSDLQIURPWKH('VKRXOGEHOLPLWHGWRRQO\
WKHLPPHGLDWHWUHDWPHQWRIDFXWHH[DFHUEDWLRQVRISDLQDVVRFLDWHGZLWKREMHFWLYHILQGLQJVRI
XQFRQWUROOHGSDLQ'LVFRXUDJHVXVHRILQWUDYHQRXVDQGLQWUDPXVFXODURSLRLGVIRUH[DFHUEDWLRQVRI
FKURQLFSDLQ('SURYLGHUVVKRXOGQRWSURYLGHUHSODFHPHQWVIRUORVWFRQWUROOHGVXEVWDQFH
SUHVFULSWLRQV0HWKDGRQHDQGORQJDFWLQJRSLRLGVVKRXOGQRWEHXVHGLQWKH('('VDUH
HQFRXUDJHGWRXVHWKH(PHUJHQF\'HSDUWPHQW,QIRUPDWLRQ([FKDQJH3K\VLFLDQVVKRXOGVHQG
SDWLHQWSDLQDJUHHPHQWVWRWKHORFDO('VDQGZRUNWRLQFOXGHDSODQIRUSDLQWUHDWPHQWLQWKH('
3UHVFULSWLRQVIRUFRQWUROOHGVXEVWDQFHVIURPWKH('VKRXOGVWDWHWKDWWKHSDWLHQWLVUHTXLUHGWR
SURYLGHJRYHUQPHQWLVVXHGSKRWRLGHQWLILFDWLRQ)RUH[DFHUEDWLRQVRIFKURQLFSDLQWKHHPHUJHQF\
PHGLFDOSURYLGHUVKRXOGFRQWDFWWKHSDWLHQW¶VSULPDU\RSLRLGSUHVFULEHURUSKDUPDF\(PHUJHQF\
PHGLFDOSURYLGHUVVKRXOGRQO\SUHVFULEHHQRXJKSLOOVWRODVWXQWLOWKHRIILFHRIWKHSDWLHQW¶V
SULPDU\RSLRLGSUHVFULEHURSHQV
3UHVFULELQJ2SLRLGVIRU3RVWRSHUDWLYH3DLQ±6XSSOHPHQWDO*XLGDQFH$JHQF\0HGLFDO'LUHFWRUV¶*URXS
'U5REHUW%UHH&ROODERUDWLYH
,QLWLDO3UHVFULSWLRQV,QLWLDOSUHVFULSWLRQVVKDOOQRWH[FHHGWZRZHHNV
:HVW9LUJLQLD
:HVW9LUJLQLD0HGLFDLG
*HQHUDO/LPLWV:HVW9LUJLQLD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
&ODULI\LQJWKDWRSWRPHWULVWVPD\FRQWLQXHWRH[HUFLVHWKHVDPHSUHVFULSWLYHDXWKRULW\ZKLFKWKH\
SRVVHVVHGSULRUWRK\GURFRGRQHEHLQJUHFODVVLILHG&KDSWHU
2SWRPHWULVWV2SWRPHWULVWVPD\QRWXVH6FKHGXOH,,FRQWUROOHGVXEVWDQFHV+RZHYHUDQRUDO
SKDUPDFHXWLFDOFHUWLILHGOLFHQVHHPD\SUHVFULEHK\GURFRGRQHDQGK\GURFRGRQHFRQWDLQLQJGUXJV
IRUDGXUDWLRQRIQRPRUHWKDQWKUHHGD\V
:HVW9LUJLQLD0HGLFDLG
*HQHUDO /LPLWV:HVW9LUJLQLD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
2SLRLG5HGXFWLRQ$FW&KDSWHU
*HQHUDO/LPLWV:KHQLVVXLQJDSUHVFULSWLRQIRUDQRSLRLGWRDQDGXOWSDWLHQWVHHNLQJWUHDWPHQWLQ
DQHPHUJHQF\URRPIRURXWSDWLHQWXVHDKHDOWKFDUHSUDFWLWLRQHUPD\QRWLVVXHDSUHVFULSWLRQIRU
PRUHWKDQDIRXUGD\VXSSO\:KHQLVVXLQJDSUHVFULSWLRQIRUDQRSLRLGWRDQDGXOWSDWLHQWVHHNLQJ
WUHDWPHQWLQDQXUJHQWFDUHIDFLOLW\VHWWLQJIRURXWSDWLHQWXVHDKHDOWKFDUHSUDFWLWLRQHUPD\QRW
LVVXHDSUHVFULSWLRQIRUPRUHWKDQDIRXUGD\VXSSO\3URYLGHGWKDWDQDGGLWLRQDOGRVLQJIRUXSWR
QRPRUHWKDQDVHYHQGD\VXSSO\PD\EHSHUPLWWHGEXWRQO\LIWKHPHGLFDOUDWLRQDOIRUPRUHWKDQ
DIRXUGD\VXSSO\LVGRFXPHQWHGLQWKHPHGLFDOUHFRUG$KHDOWKFDUHSUDFWLWLRQHUPD\QRWLVVXHDQ
RSLRLGSUHVFULSWLRQWRDPLQRUIRUPRUHWKDQDWKUHHGD\VXSSO\DQGVKDOOGLVFXVVZLWKWKHSDUHQWRU
JXDUGLDQRIWKHPLQRUWKHULVNVDVVRFLDWHGZLWKRSLRLGXVHDQGWKHUHDVRQVZK\WKHSUHVFULSWLRQLV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
QHFHVVDU\1RPHGLFDWLRQOLVWHGDVD6FKHGXOH,,FRQWUROOHGVXEVWDQFHPD\EHSUHVFULEHGE\D
SUDFWLWLRQHUIRUJUHDWHUWKDQDGD\VXSSO\KRZHYHUWZRDGGLWLRQDOSUHVFULSWLRQVHDFKIRUD
GD\SHULRGIRUDWRWDORIDGD\VXSSO\PD\EHSUHVFULEHGLIWKHSUDFWLWLRQHUDFFHVVHVWKH:HVW
9LUJLQLD&RQWUROOHG6XEVWDQFHV0RQLWRULQJ3URJUDP'DWDEDVHDVUHTXLUHG
,QLWLDO3UHVFULSWLRQV$SUDFWLWLRQHUPD\QRWLVVXHDQLQLWLDORSLRLGSUHVFULSWLRQIRUPRUHWKDQD
VHYHQGD\VXSSO\7KHSUHVFULSWLRQVKDOOEHIRUWKHORZHVWHIIHFWLYHGRVHZKLFKLQWKHPHGLFDO
MXGJHPHQWRIWKHSUDFWLWLRQHUZRXOGEHWKHEHVWFRXUVHRIWUHDWPHQWIRUWKLVSDWLHQWDQGKLVRUKHU
FRQGLWLRQ
'HQWLVWV'HQWLVWVPD\QRWLVVXHRSLRLGSUHVFULSWLRQVIRUPRUHWKDQDWKUHHGD\VXSSO\DWDQ\WLPH
2SWRPHWULVWV$QRSWRPHWULVWPD\QRWLVVXHDQRSLRLGSUHVFULSWLRQIRUPRUHWKDQDWKUHHGD\
VXSSO\DWDQ\WLPH
:LVFRQVLQ
:LVFRQVLQ0HGLFDLG
*HQHUDO/LPLWV:LVFRQVLQ0HGLFDLGXSGDWHGWKHLUUHTXLUHPHQWVUHODWHGWRRSLRLGTXDQWLW\OLPLWV
LQWKHLU)HHIRU6HUYLFHSURJUDPLQ
2SLRLG3UHVFULELQJ*XLGHOLQH:LVFRQVLQ0HGLFDO([DPLQLQJ%RDUG
*HQHUDO/LPLWV:KHQRSLRLGVDUHXVHGSUHVFULEHWKHORZHVWSRVVLEOHHIIHFWLYHGRVDJHDQGVWDUW
ZLWKLPPHGLDWHUHOHDVHRSLRLGVLQVWHDGRIH[WHQGHGUHOHDVHORQJDFWLQJRSLRLGV2QO\SURYLGHWKH
TXDQWLW\QHHGHGIRUWKHH[SHFWHGGXUDWLRQRISDLQ
$FXWH3DLQ,QWUHDWLQJDFXWHSDLQLIRSLRLGVDUHDWDOOLQGLFDWHGWKHORZHVWGRVHDQGIHZHVW
QXPEHURIRSLRLGSLOOVQHHGHGVKRXOGEHSUHVFULEHG,QPRVWFDVHVOHVVWKDQGD\V¶ZRUWKDUH
QHFHVVDU\DQGUDUHO\PRUHWKDQGD\V¶ZRUWK:KHQSUHVFULELQJRSLRLGVSK\VLFLDQVVKRXOG
FRQVLGHUZULWLQJWZRVHSDUDWHSUHVFULSWLRQVIRUVPDOOHUDPRXQWVRIRSLRLGVZLWKVSHFLILFUHILOO
GDWHVUDWKHUWKDQDVLQJOHODUJHSUHVFULSWLRQ,QLWLDOGRVHWLWUDWLRQIRUERWKDFXWHDQGFKURQLFSDLQ
VKRXOGEHZLWKVKRUWDFWLQJRSLRLGV
&KURQLF3DLQ(YLGHQFHIRURSLRLGVLVSRRU7KHUHLVQRKLJKTXDOLW\HYLGHQFHWRVXSSRUWRSLRLG
WKHUDS\ORQJHUWKDQPRQWKVLQGXUDWLRQ'HVSLWHWKLVIDFWLWLVFRQVLGHUHGDFFHSWDEOHDOWKRXJK
QRWSUHIHUDEOHWRFRQWLQXHSDWLHQWVRQWUHDWPHQWZKRKDYHEHHQRQFKURQLFRSLRLGWKHUDS\SULRUWR
WKLV*XLGHOLQH
VUHOHDVHDQGZKRKDYHVKRZQQRHYLGHQFHRIDEHUUDQWEHKDYLRU7KHXVHRI
R[\FRGRQHLVGLVFRXUDJHG7KHXVHRIPHWKDGRQHLVQRWHQFRXUDJHGXQOHVVWKHSUDFWLWLRQHUKDV
H[WHQVLYHWUDLQLQJRUH[SHULHQFHLQLWVXVH,QLWLDOGRVHWLWUDWLRQIRUERWKDFXWHDQGFKURQLFSDLQ
VKRXOGEHZLWKVKRUWDFWLQJRSLRLGV)RUFKURQLFWKHUDS\LWZRXOGEHDSSURSULDWHRQFHDQHIIHFWLYH
GRVHLVHVWDEOLVKHGWRFRQVLGHUORQJDFWLQJDJHQWVIRUDPDMRULW\RIWKHGDLO\GRVH2SLRLGVVKRXOG
EHSUHVFULEHGLQWKHORZHVWHIIHFWLYHGRVH7KLVLQFOXGHVSUHVFULELQJWKHORZHVWHIIHFWLYHGRVHIRU
WKHVKRUWHVWSRVVLEOHGXUDWLRQIRUSRVWRSHUDWLYHFDUHDQGDFXWHO\LQMXUHGSDWLHQWV,IGDLO\GRVHV
IRUFKURQLFSDLQUHDFKPRUSKLQHPLOOLJUDPHTXLYDOHQWV00(VDGGLWLRQDOSUHFDXWLRQVVKRXOG
EHLPSOHPHQWHG*LYHQWKDWWKHUHLVQRHYLGHQFHEDVHWRVXSSRUWHIILFDF\RIGRVHVRYHU00(V
ZLWKGUDPDWLFDOO\LQFUHDVHGULVNVGRVLQJDERYHWKLVOHYHOLVVWURQJO\GLVFRXUDJHGDQGDSSURSULDWH
GRFXPHQWDWLRQWRVXSSRUWVXFKGRVLQJVKRXOGEHSUHVHQWRQWKHFKDUW
:\RPLQJ
:\RPLQJ0HGLFDLG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*HQHUDO/LPLWV:\RPLQJ0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
7UHDWPHQW*XLGHOLQHV±&KURQLF1RQ0DOLJQDQW3DLQ'HSDUWPHQWRI:RUNIRUFH6HUYLFHV'LYLVLRQRI
:RUNHUV¶&RPSHQVDWLRQ
&KURQLF3DLQ7KH'LYLVLRQKDVDSSURYHGR[\FRGRQH$3$3K\GURFRGRQH$3$3%XWUDQV70
SDWFKR[\FRGRQH$3$32[\&RQWLQ70PRUSKLQHR[\PRUSKRQH.DGLDQ70DQGWKHDQDOJHVLF
WUDPDGROIRUWKHWUHDWPHQWRIFKURQLFSDLQ$OOWUDQVPXFRVDODQGWUDQVGHUPDOLPPHGLDWHUHOHDVH
'XUDJHVLF70IHQWDQ\ODJHQWV6XER[RQH6XEXWH[DQG'HPHURO70ZLOOEHGHQLHGIRUFKURQLF
QRQPDOLJQDQWSDLQUHOLHI7UDQVFXWDQHRXVRSLRLGDQDOJHVLFVZLOOEHFRQVLGHUHGRQO\LIWKHUHLV
GRFXPHQWDWLRQWKDWWKHGLVRUGHUSUHYHQWVDGHTXDWHRUDOGRVLQJ5HFRPPHQGVFRQVXOWLQJZLWKD
SDLQVSHFLDOLVWLIDGRVHLVLQH[FHVVRI00(GD\IRUSDWLHQWVZKRKDYHQRWLPSURYHGDIWHU
PRQWKVIRUWKRVHZLWKDKLVWRU\RIFKHPLFDOGHSHQGHQF\HWF
:\RPLQJ0HGLFDLG
*HQHUDO/LPLWV:\RPLQJ0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU
6HUYLFHSURJUDPLQ
([WHQGHG5HOHDVH/RQJ$FWLQJ2SLRLG3ROLFLHV
,QWKH)'$DSSURYHGWKHLQLWLDO(5DQG/$2SLRLG$QDOJHVLFV5LVN(YDOXDWLRQDQG0LWLJDWLRQ
6WUDWHJ\PRVWUHFHQWO\XSGDWHGLQ7KHJRDORIWKLV5(06LVWRUHGXFHVHULRXVDGYHUVHRXWFRPHV
UHVXOWLQJIURPLQDSSURSULDWHSUHVFULELQJPLVXVHDQGDEXVHRI(5/$RSLRLGDQDOJHVLFVZKLOH
PDLQWDLQLQJSDWLHQWDFFHVVWRSDLQPHGLFDWLRQV
)URPSROLFLHVLQVWDWHVDQGDJHQFLHVLQWKH86JRYHUQPHQWKDYHLPSOHPHQWHGSROLFLHV
VSHFLILFDOO\UHODWHGWRWKHXVHRI(5/$RSLRLGDQDOJHVLFV
8QLWHG6WDWHV 0DU\ODQG 3HQQV\OYDQLD
$UL]RQD 0DVVDFKXVHWWV 7HQQHVVHH
&RORUDGR 1HEUDVND 8WDK
,OOLQRLV 1HZ+DPSVKLUH 9LUJLQLD
,QGLDQD 2NODKRPD :DVKLQJWRQ
/RXLVLDQD 2UHJRQ :LVFRQVLQ
8QLWHG6WDWHV
&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ²8QLWHG6WDWHV&HQWHUVIRU'LVHDVH&RQWURO
DQG3UHYHQWLRQ
5HOHYDQFHWR(5/$2SLRLGV:KHQVWDUWLQJRSLRLGWKHUDS\IRUFKURQLFSDLQFOLQLFLDQVVKRXOG
SUHVFULEHLPPHGLDWHUHOHDVHRSLRLGVLQVWHDGRIH[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGV
:KHQRSLRLGVDUHXVHGIRUDFXWHSDLQFOLQLFLDQVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVHRI
LPPHGLDWHUHOHDVHRSLRLGVDQGVKRXOGSUHVFULEHQRJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKHH[SHFWHG
GXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV7KUHHGD\VRUOHVVZLOORIWHQEHVXIILFLHQWPRUH
WKDQVHYHQGD\VZLOOUDUHO\EHQHHGHG
9$'R'&OLQLFDO3UDFWLFH*XLGHOLQHIRU2SLRLG7KHUDS\IRU&KURQLF3DLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
5HOHYDQFHWR(5/$2SLRLGV5HFRPPHQGVDJDLQVWSUHVFULELQJORQJDFWLQJRSLRLGVIRUDFXWHSDLQ
DVDQDVQHHGHGPHGLFDWLRQRURQLQLWLDWLRQRIORQJWHUPRSLRLGWKHUDS\,IWDNHKRPHRSLRLGVDUH
SUHVFULEHGUHFRPPHQGVWKDWLPPHGLDWHUHOHDVHRSLRLGVDUHXVHGDWWKHORZHVWHIIHFWLYHGRVHZLWK
RSLRLGWKHUDS\UHDVVHVVPHQWQRODWHUWKDQGD\VWRGHWHUPLQHLIDGMXVWPHQWVRUFRQWLQXLQJ
RSLRLGWKHUDS\LVLQGLFDWHG
$UL]RQD
$UL]RQD2SLRLG3UHVFULELQJ*XLGHOLQHV$UL]RQD'HSDUWPHQWRI+HDOWK6HUYLFHV
5HOHYDQFHWR(5/$2SLRLGV'RQRWXVHORQJDFWLQJRSLRLGVIRUWKHWUHDWPHQWRIDFXWHSDLQ
&RORUDGR
2SLRLG3ROLF\&KDQJH)$4VIRU3UHVFULEHUV+HDOWK)LUVW&RORUDGR0HGLFDLG'HSDUWPHQWRI+HDOWK
&DUH3ROLF\DQG)LQDQFLQJ
5HOHYDQFHWR(5/$2SLRLGV$OOORQJDFWLQJRSLRLGVZLOOUHTXLUHDSULRUDXWKRUL]DWLRQIRURSLRLG
QDwYHSDWLHQWV
,OOLQRLV
)HQWDQ\OSURGXFWVQRQSUHIHUUHGLQ,OOLQRLV0HGLFDLG,OOLQRLV'HSDUWPHQWRI+HDOWKFDUHDQG)DPLO\
6HUYLFHV
5HOHYDQFHWR(5/$2SLRLGV$VDUHVXOWRIVDIHW\FRQFHUQVHIIHFWLYH$XJXVWIHQWDQ\O
WUDQVGHUPDOSDWFKHVZLOOUHTXLUHSULRUDSSURYDOIRUDOOIHHIRUVHUYLFH+)6SDUWLFLSDQWV/RQJ
DFWLQJRSLRLGWKHUDS\RSWLRQVRQWKH3UHIHUUHG'UXJ/LVWDUHH[WHQGHGUHOHDVHPRUSKLQHRUDO
WDEOHWVDQG(PEHGD70FDSVXOHV
,QGLDQD
,$&7ULJJHUVIRULPSRVLWLRQRIUHTXLUHPHQWVH[HPSWLRQV0HGLFDO/LFHQVLQJ%RDUGRI,QGLDQD
5HOHYDQFHWR(5/$2SLRLGV8QGHUFHUWDLQFLUFXPVWDQFHVGLVDOORZVDQH[WHQGHGUHOHDVHRSLRLG
WKDWLVQRWLQDQDEXVHGHWHUUHQWIRUPIRUZKLFKWKHUHLVDQ)'$DSSURYHGDEXVHGHWHUUHQWIRUP
DYDLODEOH
/RXLVLDQD
+($/7+$&&,1685$1&(3URKLELWVDKHDOWKLQVXUDQFHLVVXHUIURPGHQ\LQJDQRQRSLRLGSUHVFULSWLRQ
LQIDYRURIDQRSLRLGSUHVFULSWLRQ$FW
5HOHYDQFHWR(5/$2SLRLGV:KHQDQRSLRLGLVGHHPHGQHFHVVDU\DQGSUHVFULEHGDQLQVXUHU
PD\QRWVXEVWLWXWHDQDOWHUQDWLYHWKDWZRXOGUHTXLUHDQH[WHQGHGUHOHDVHPHGLFDWLRQWKDWGRHVQRW
KDYHDEXVHGHWHUUHQWSURSHUWLHVIRUDSUHVFULSWLRQWKDWZDVLQWHQGHGWREHDEXVHGHWHUUHQW
0DU\ODQG
2SLRLG3UHVFULELQJ*XLGDQFHDQG3ROLF\0DU\ODQG0HGLFDLG
5HOHYDQFHWR(5/$2SLRLGV5HTXLUHVSULRUDXWKRUL]DWLRQHYHU\VL[PRQWKVIRUORQJDFWLQJ
RSLRLGV
0DVVDFKXVHWWV
$Q$FW5HODWLYHWR6XEVWDQFH8VH7UHDWPHQW(GXFDWLRQDQG3UHYHQWLRQ&KDSWHU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
5HOHYDQFHWR(5/$2SLRLGV3ULRUWRLVVXLQJDQH[WHQGHGUHOHDVHORQJDFWLQJRSLRLGLQDQRQ
DEXVHGHWHUUHQWIRUPIRURXWSDWLHQWXVHIRUWKHILUVWWLPHDSUDFWLWLRQHUVKDOOLHYDOXDWHWKH
SDWLHQW¶VFXUUHQWFRQGLWLRQULVNIDFWRUVKLVWRU\RIVXEVWDQFHDEXVHLIDQ\DQGFXUUHQW
PHGLFDWLRQVDQGLLLQIRUPWKHSDWLHQWDQGQRWHLQWKHSDWLHQW¶VPHGLFDOUHFRUGWKDWWKHSUHVFULEHG
PHGLFDWLRQLQWKHSUHVFULEHU¶VPHGLFDORSLQLRQLVDQDSSURSULDWHFRXUVHRIWUHDWPHQWEDVHGRQWKH
PHGLFDOQHHGRIWKHSDWLHQW,QWKHHYHQWWKDWDQ(5/$RSLRLGLVXVHGGXULQJWKHFRXUVHRIORQJ
WHUPSDLQPDQDJHPHQWWKHSUDFWLWLRQHUVKDOOHQWHULQWRDZULWWHQSDLQPDQDJHPHQWWUHDWPHQW
DJUHHPHQWZLWKWKHSDWLHQW
2SLRLG&RQWUROOHG6XEVWDQFH3URWRFRO'HSDUWPHQWRI,QGXVWULDO$FFLGHQWV
5HOHYDQFHWR(5/$2SLRLGV'LVDOORZVLQLWLDWLQJWUHDWPHQWRIDFXWHSDLQZLWKORQJDFWLQJRU
H[WHQGHGUHOHDVHRSLRLGV
1HEUDVND
1HEUDVND3DLQ0DQDJHPHQW*XLGDQFH'RFXPHQW'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV
5HOHYDQFHWR(5/$2SLRLGV)RUPRVWLQMXULHVDQGPLQRUSURFHGXUHVHJGHQWDOH[WUDFWLRQ
VSRUWVLQMXULHVSUHVFULEHQRPRUHWKDQDWKUHHGD\VXSSO\RUGRVHVRIDVKRUWDFWLQJRSLRLG
)RUPRUHVHYHUHLQMXULHVHJIUDFWXUHVSUHVFULEHQRPRUHWKDQDVHYHQGD\VXSSO\RIDVKRUW
DFWLQJRSLRLG'RQRWSUHVFULEHH[WHQGHGUHOHDVHRSLRLGVIRUDFXWHSDLQ
1HZ+DPSVKLUH
1+)HHIRU6HUYLFH))60HGLFDLG3UHIHUUHG'UXJ/LVW3'/&OLQLFDO3ULRU$XWKRUL]DWLRQ8SGDWHV
:HE3RUWDO,QIRUPDWLRQ(PDLO1RWLILFDWLRQV1HZ+DPSVKLUH0HGLFDLG
5HOHYDQFHWR(5/$2SLRLGV(IIHFWLYH'HFHPEHUUHYLVLRQVZHUHPDGHWRWKHFOLQLFDO
SULRUDXWKRUL]DWLRQUXOHVDSSO\LQJWRORQJDFWLQJRSLRLGDQDOJHVLFV
2NODKRPD
2NODKRPD2SLRLG3UHVFULELQJ*XLGHOLQHV'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR(5/$2SLRLGV/RQJDFWLQJRUH[WHQGHGUHOHDVHRSLRLGVVKRXOGQRWEHSUHVFULEHG
IRUDFXWHSDLQ)RUFKURQLFSDLQORQJDFWLQJRUH[WHQGHGUHOHDVHRSLRLGVDUHDVVRFLDWHGZLWKDQ
LQFUHDVHGULVNRIRYHUGRVHGHDWKDQGVKRXOGRQO\EHSUHVFULEHGE\KHDOWKFDUHSURYLGHUVIDPLOLDU
ZLWKWKHLULQGLFDWLRQVULVNVDQGQHHGIRUFDUHIXOPRQLWRULQJ
2UHJRQ
2SLRLG3UHVFULELQJIRU&RQGLWLRQVRIWKH%DFNDQG6SLQH+HDOWK(YLGHQFH5HYLHZ&RPPLVVLRQ2UHJRQ
+HDOWK$XWKRULW\0HGLFDLG
5HOHYDQFHWR(5/$2SLRLGV)RUDFXWHSDLQILUVWZHHNVDQGIRUSDLQDIWHUZHHNVDQGXSWR
GD\VRSLRLGWUHDWPHQWLVDYDLODEOHZLWKVKRUWDFWLQJRSLRLGVRQO\(5/$RSLRLGVDUHQRW
FRYHUHGE\2UHJRQ0HGLFDLGIRUSDWLHQWVZLWKEDFNDQGVSLQHFRQGLWLRQV
2UHJRQ&KURQLF2SLRLG3UHVFULELQJ*XLGHOLQHV2UHJRQ+HDOWK$XWKRULW\3XEOLF+HDOWK
'LYLVLRQ
5HOHYDQFHWR(5/$2SLRLGV5HFRPPHQGVWKHXVHRILPPHGLDWHUHOHDVHRSLRLGVLQVWHDGRI
H[WHQGHGUHOHDVHORQJDFWLQJ(5/$RSLRLGV
2UHJRQ$FXWH2SLRLG3UHVFULELQJ*XLGHOLQHV2UHJRQ+HDOWK$XWKRULW\0HGLFDLG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
5HOHYDQFHWR(5/$2SLRLGV5HFRPPHQGVWKHXVHRIVKRUWDFWLQJRSLRLGVLQVWHDGRIH[WHQGHG
UHOHDVHORQJDFWLQJ(5/$RSLRLGV
3HQQV\OYDQLD
*HULDWULF3DLQ2SLRLG8VHDQG6DIH3UHVFULELQJ'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR(5/$2SLRLGV*XLGHOLQHVUHFRPPHQGDYRLGLQJWKHXVHRIORQJDFWLQJRSLRLGVLQ
ROGHUDGXOWV
6DIH3UHVFULELQJRI2SLRLGVLQ3HGLDWULFDQG$GROHVFHQW3RSXODWLRQV'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR(5/$2SLRLGV6KRUWDFWLQJRSLRLGVVKRXOGEHXVHGILUVW/RQJHUDFWLQJRSLRLGV
VKRXOGEHDYRLGHGDVWKH\SRVHJUHDWHUVDIHW\DQGPLVXVHULVNVDQGDUHUDUHO\QHHGHG
7UHDWPHQWRI3DLQLQDQ(PHUJHQW6HWWLQJ'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR(5/$2SLRLGV/RQJDFWLQJRUFRQWUROOHGUHOHDVHRSLRLGVVXFKDVH[WHQGHGUHOHDVH
R[\FRGRQHIHQWDQ\OSDWFKHVH[WHQGHGUHOHDVHPRUSKLQHDQGPHWKDGRQHVKRXOGQRWEH
SUHVFULEHGIURPWKHHPHUJHQF\GHSDUWPHQW
7HQQHVVHH
7HQQ&DUHZLOOEHJLQLPSOHPHQWDWLRQRID0RUSKLQH0LOOLJUDP(TXLYDOHQW00(HGLW7HQQ&DUH
0HGLFDLG
5HOHYDQFHWR(5/$2SLRLGV(IIHFWLYH6HSWHPEHU7HQQ&DUHZLOOEHJLQLPSOHPHQWDWLRQ
RID0RUSKLQH0LOOLJUDP(TXLYDOHQW00(HGLWIRUDOODJHQWVLQWKH6KRUW$FWLQJ1DUFRWLFDQG
/RQJ$FWLQJ1DUFRWLF&ODVVHVRIWKH3'/7KHHGLWZLOODFFXPXODWH00(IRUDOOVKRUWDFWLQJ
QDUFRWLFVDQGORQJDFWLQJQDUFRWLFVDSDWLHQWLVFXUUHQWO\UHFHLYLQJDQGZLOOGHQ\FODLPVIRU
SDWLHQWVSUHVFULEHGDFXPXODWLYHGDLO\00(RIJUHDWHUWKDQ00(3ULRUDXWKRUL]DWLRQZLOOEH
UHTXLUHGIRUSDWLHQWVH[FHHGLQJWKHGDLO\00(OLPLW
&KDQJHVWR3ULRU$XWKRUL]DWLRQ&ULWHULDDQGTXDQWLW\OLPLWVIRUWKH3UHIHUUHG'UXJ/LVW3'/7HQQ&DUH
0HGLFDLG
5HOHYDQFHWR(5/$2SLRLGV$OOORQJDFWLQJQDUFRWLFVUHTXLUHSULRUDXWKRUL]DWLRQ
8WDK
8WDK0HGLFDLG3URYLGHU0DQXDO'UXJVZLWK4XDQWLW\/LPLWV
5HOHYDQFHWR(5/$2SLRLGV,QDGGLWLRQWRWKHGUXJVSHFLILFOLPLWVIRXQGZLWKLQWKHSURYLGHU
PDQXDOFXPXODWLYHOLPLWVIRUDQ\FRPELQDWLRQRIORQJDFWLQJRSLRLGVLVWDEOHWVSHUGD\V
LQGHSHQGHQWRIVKRUWDFWLQJDQGRURSLRLG$3$3FRPELQDWLRQSURGXFWDFFXPXODWLRQ7KH
FXPXODWLYHOLPLWPD\EHRYHUULGGHQLIWKHSUHVFULEHUZULWHVDYDOLG,&'FRGHIRUFDQFHURQWKHIDFH
RIWKHSUHVFULSWLRQ,QLWLDOSUHVFULSWLRQVIRURYHUDGD\VXSSO\UHTXLUHSULRUDXWKRUL]DWLRQ
)HQWDQ\OLVPXWXDOO\H[FOXVLYHZLWKPHWKDGRQHDQGDOORWKHUORQJDFWLQJRSLRLGV0HWKDGRQHLV
PXWXDOO\H[FOXVLYHZLWKIHQWDQ\ODQGDOORWKHUORQJDFWLQJRSLRLGV$OORWKHURSLRLGVDUHQRW
PXWXDOO\H[FOXVLYHZLWKHDFKRWKHU
8WDK&OLQLFDO*XLGHOLQHVRQ3UHVFULELQJ2SLRLGVIRU7UHDWPHQWRI3DLQ8WDK'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR(5/$2SLRLGV5HFRPPHQGVWKHXVHRIVKRUWDFWLQJRSLRLGVUDWKHUWKDQORQJDFWLQJ
RSLRLGV(5/$RSLRLGVVKRXOGEHUHVHUYHGIRUVHYHUHFRQWLQXRXVSDLQDQGVKRXOGEHFRQVLGHUHG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
RQO\IRUSDWLHQWVZKRKDYHUHFHLYHG,56$RSLRLGVGDLO\IRUDWOHDVWRQHZHHN,QLWLDOWUHDWPHQW
VKRXOGQRWXVHPHWKDGRQHIHQWDQ\ORUWKHFRPELQDWLRQRIRSLRLGVDQGEHQ]RGLD]HSLQHV
9LUJLQLD
5HJXODWLRQV*RYHUQLQJ3UHVFULELQJRI2SLRLGVDQG%XSUHQRUSKLQH'HSDUWPHQWRI+HDOWK3URIHVVLRQV
5HOHYDQFHWR(5/$2SLRLGV)RUWKHWUHDWPHQWRIDFXWHSDLQDOORZVIRURQO\DGD\VXSSO\RU
OHVVIRUXSWRRQO\GD\VWRWDORIVKRUWDFWLQJRSLRLGV/RQJDFWLQJRSLRLGVDUHGLVDOORZHGIRU
WUHDWPHQWRIDFXWHSDLQ
:DVKLQJWRQ
'HQWDO*XLGHOLQHRQ3UHVFULELQJ2SLRLGVIRU$FXWH3DLQ0DQDJHPHQW$JHQF\0HGLFDO'LUHFWRUV¶*URXS
'U5REHUW%UHH&ROODERUDWLYH
5HOHYDQFHWR(5/$2SLRLGV,IRSLRLGVDUHQHFHVVDU\RQO\UHFRPPHQGVVKRUWDFWLQJRSLRLGV
+&$WRLPSOHPHQWRSLRLGFOLQLFDOSROLF\IRU$SSOH+HDOWK0HGLFDLGRQ1RY:DVKLQJWRQ6WDWH
+HDOWK&DUH$XWKRULW\0HGLFDLG3XEOLF(PSOR\HHV
5HOHYDQFHWR(5/$2SLRLGV/RQJDFWLQJRSLRLGVDUHRQO\DSSURYHGZKHQRQHRIWKHVHVLWXDWLRQV
H[LVWV7KHSDWLHQWLVJUDQGIDWKHUHGDOUHDG\RQFKURQLFRSLRLGVEHIRUH1RYHPEHU7KH
SDWLHQWLVXQGHUJRLQJDFWLYHFDQFHUWUHDWPHQW7KHSDWLHQWLVLQKRVSLFHSDOOLDWLYHFDUHRUHQGRI
OLIHFDUH3UHVFULEHUKDVIROORZHGWKH(;(037SURFHVV3UHVFULEHUKDVREWDLQHGSULRU
DXWKRUL]DWLRQIROORZLQJGD\VRIWKHUDS\
:DVKLQJWRQ(PHUJHQF\'HSDUWPHQW2SLRLG3UHVFULELQJ*XLGHOLQHV'HSDUWPHQWRI+HDOWK(PHUJHQF\
'HSDUWPHQW2SLRLGV$EXVH:RUN*URXS
5HOHYDQFHWR(5/$2SLRLGV/RQJDFWLQJRSLRLGVVKRXOGQRWEHXVHGLQWKHHPHUJHQF\
GHSDUWPHQW
:LVFRQVLQ
2SLRLG3UHVFULELQJ*XLGHOLQH:LVFRQVLQ0HGLFDO([DPLQLQJ%RDUG
5HOHYDQFHWR(5/$2SLRLGV,QLWLDOGRVHWLWUDWLRQIRUERWKDFXWHDQGFKURQLFSDLQVKRXOGEHZLWK
VKRUWDFWLQJRSLRLGV5HFRPPHQGVDYRLGLQJWKHXVHRIORQJDFWLQJRSLRLGVIRUSDWLHQWVEHLQJ
WUHDWHGIRUDFXWHRUFKURQLFSDLQZKRDUHQRWLQDFWLYHFDQFHUWUHDWPHQWSDOOLDWLYHFDUHRUHQGRI
OLIHFDUH)RUFKURQLFWKHUDS\LWZRXOGEHDSSURSULDWHRQFHDQHIIHFWLYHGRVHLVHVWDEOLVKHGWR
FRQVLGHUORQJDFWLQJDJHQWVIRUDPDMRULW\RIWKHGDLO\GRVH
3DLQ6SHFLDOLVWVDQG3DLQ0DQDJHPHQW&OLQLFV5HIHUUDOV&RQVXOWDWLRQVDQG5HTXLUHG
3UDFWLFHV
$FFRUGLQJWR)'$¶V2SLRLG$QDOJHVLF5(06(GXFDWLRQ%OXHSULQWIRU+HDOWK&DUH3URYLGHUV,QYROYHGLQ
WKH7UHDWPHQWDQG0RQLWRULQJRI3DWLHQWVZLWK3DLQKHDOWKFDUHSURYLGHUVVKRXOGEHNQRZOHGJHDEOHDERXW
ZKHQUHIHUUDOWRDSDLQPDQDJHPHQWVSHFLDOLVWLVLQGLFDWHG
)URPSROLFLHVLQVWDWHVDQGIURPWKH&'&KDYHLPSOHPHQWHGSROLFLHVUHODWHGWRWKH
TXDOLILFDWLRQVUHODWHGWRPHGLFDOGLUHFWRUVRISDLQFOLQLFVDQGRUUHTXLUHPHQWVIRUWKRVHFOLQLFVDQGRU
UHTXLUHGRUUHFRPPHQGHGUHIHUUDOVWRDQGFRQVXOWDWLRQVZLWKSDLQVSHFLDOLVWV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
8QLWHG6WDWHV .DQVDV 7HQQHVVHH
$ODEDPD 1HYDGD 9HUPRQW
$UL]RQD 1HZ+DPSVKLUH :DVKLQJWRQ
$UNDQVDV 1RUWK'DNRWD :HVW9LUJLQLD
&RORUDGR 2KLR :LVFRQVLQ
)ORULGD 3HQQV\OYDQLD :\RPLQJ
*HRUJLD
8QLWHG6WDWHV
&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ²8QLWHG6WDWHV&HQWHUVIRU'LVHDVH&RQWURODQG
3UHYHQWLRQ
5HOHYDQFHWR3DLQ6SHFLDOLVWV&OLQLFLDQVVKRXOGDYRLGLQFUHDVLQJRSLRLGGRVDJHVWR00(GD\RU
VKRXOGFDUHIXOO\MXVWLI\DGHFLVLRQWRLQFUHDVHGRVDJHWR00(GD\EDVHGRQLQGLYLGXDOL]HG
DVVHVVPHQWRIEHQHILWVDQGULVNVDQGZHLJKLQJIDFWRUVVXFKDVGLDJQRVLVLQFUHPHQWDOEHQHILWVIRUSDLQ
DQGIXQFWLRQUHODWLYHWRKDUPVDVGRVDJHVDSSURDFK00(GD\RWKHUWUHDWPHQWVDQGHIIHFWLYHQHVV
DQGUHFRPPHQGDWLRQVEDVHGRQFRQVXOWDWLRQZLWKSDLQVSHFLDOLVWV,ISDWLHQWVGRQRWH[SHULHQFH
LPSURYHPHQWLQSDLQDQGIXQFWLRQDW00(GD\RULIWKHUHDUHHVFDODWLQJGRVDJHUHTXLUHPHQWV
FOLQLFLDQVVKRXOGGLVFXVVRWKHUDSSURDFKHVWRSDLQPDQDJHPHQWZLWKWKHSDWLHQWFRQVLGHUZRUNLQJ
ZLWKSDWLHQWVWRWDSHURSLRLGVWRDORZHUGRVDJHRUWRWDSHUDQGGLVFRQWLQXHRSLRLGVDQGFRQVLGHU
FRQVXOWLQJDSDLQVSHFLDOLVW&OLQLFLDQVVKRXOGPD[LPL]HSDLQWUHDWPHQWZLWKQRQSKDUPDFRORJLFDQG
QRQRSLRLGSKDUPDFRORJLFWUHDWPHQWVDVDSSURSULDWHDQGFRQVLGHUFRQVXOWLQJDSDLQVSHFLDOLVWDVQHHGHG
WRDVVLVWZLWKSDLQPDQDJHPHQW
$ODEDPD
[7UDLQLQJ5HTXLUHPHQWV0HGLFDO'LUHFWRU2WKHU5HTXLUHPHQWV$ODEDPD%RDUGRI0HGLFDO
([DPLQHUV
5HOHYDQFHWR3DLQ6SHFLDOLVWV5HYLVHVWUDLQLQJHGXFDWLRQTXDOLILFDWLRQUHTXLUHPHQWVUHODWHGWRPHGLFDO
GLUHFWRUVRISDLQPDQDJHPHQWFOLQLFV
$UL]RQD
&RQWUROOHGVXEVWDQFHVGRVDJHOLPLW&KDSWHU
5HOHYDQFHWR3DLQ6SHFLDOLVWV)RUFDVHVLQZKLFKWKHSK\VLFLDQEHOLHYHVPRUHWKDQ00(GD\RI
RSLRLGLVQHHGHGWKLVELOODGGVLQDGGLWLRQWRFRQVXOWDWLRQZLWKDERDUGFHUWLILHGSDLQVSHFLDOLVWDQ
RSWLRQIRUWKHSK\VLFLDQWRFRQVXOWZLWKDQRSLRLGDVVLVWDQFHUHIHUUDOFDOOVHUYLFH3HUPLWVWKH$UL]RQD
3RLVRQ&RQWURO6\VWHPWRSURYLGHRSLRLGDVVLVWDQFHDQGUHIHUUDOFDOOVHUYLFHV$OORZVDUHJLVWHUHG
QXUVHSUDFWLWLRQHUZKRKDVDGYDQFHGSDLQFHUWLILFDWLRQWRVHUYHDVWKHPHGLFDOGLUHFWRURIDSDLQ
PDQDJHPHQWFOLQLF
&RQWUROOHGVXEVWDQFHVUHJXODWLRQDSSURSULDWLRQ&KDSWHU)LUVW6SHFLDO6HVVLRQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
5HOHYDQFHWR3DLQ6SHFLDOLVWV'LUHFWVDKHDOWKSURIHVVLRQDOZKREHOLHYHVDSDWLHQWUHTXLUHVPRUHWKDQ
00(VSHUGD\WRFRQVXOWZLWKDERDUGFHUWLILHGSDLQVSHFLDOLVW
$UNDQVDV
5HJXODWLRQ1R3DLQ0DQDJHPHQW3URJUDPV$UNDQVDV0HGLFDO%RDUG
5HOHYDQFHWR3DLQ6SHFLDOLVWV(VWDEOLVKHVUHTXLUHPHQWVIRUSK\VLFLDQVRSHUDWLQJSDLQPDQDJHPHQW
SURJUDPV6HWVUXOHVUHODWHGWRHGXFDWLRQDQGTXDOLILFDWLRQVIRUSK\VLFLDQVPDQDJLQJ&KURQLF3DLQ
0DQDJHPHQW3URJUDPV
&RORUDGR
+HDOWK)LUVW&RORUDGR%HQHILWVDQG6HUYLFHV+HDOWK)LUVW&RORUDGR0HGLFDLG'HSDUWPHQWRI+HDOWK&DUH
3ROLF\DQG)LQDQFLQJ
5HOHYDQFHWR3DLQ6SHFLDOLVWV%HJLQQLQJ1RYHPEHUWKHWRWDOGDLO\OLPLWRI00(ZLOOEH
GHFUHDVLQJIURP00(SHUGD\WR00(SHUGD\,IDSUHVFULSWLRQSXWVDPHPEHUDERYH
00(SHUGD\IXUWKHUDSSURYDOVZLOOEHUHTXLUHGWRDOORZWLPHIRUWKHSUHVFULEHUWRZRUNZLWKWKH
PHPEHUWRVDIHO\WDSHURSLRLGGRVHVGRZQWR00(ZKLOHPDNLQJVXUHWKHPHPEHUKDVDGHTXDWH
SDLQFRQWURO,QVRPHFLUFXPVWDQFHVDFRQVXOWDWLRQZLWKWKH'HSDUWPHQW¶VSDLQPDQDJHPHQWSK\VLFLDQ
PD\EHUHTXLUHG
)ORULGD
$FFHVVWR+HDOWK&DUH6HUYLFHV&KDSWHU1R
5HOHYDQFHWR3DLQ6SHFLDOLVWV$GGVSK\VLFLDQVZKRDUHERDUGHOLJLEOHRUERDUGFHUWLILHGZLWKWKH
$PHULFDQ%RDUGRI,QWHUYHQWLRQDO3DLQ3K\VLFLDQVDQGWKH$PHULFDQ$VVRFLDWLRQRI3K\VLFLDQ
6SHFLDOWLHVWRWKHOLVWRIWKRVHZKRDUHH[HPSWHGIURPUHIHUULQJWKHLUSDWLHQWVZLWKVLJQVRIVXEVWDQFH
XVHGLVRUGHUWRDVSHFLDOLVW
%HKDYLRUDO+HDOWK:RUNIRUFH&KDSWHU1R
5HOHYDQFHWR3DLQ6SHFLDOLVWV$GGVSK\VLFLDQVZKRDUHERDUGHOLJLEOHRUERDUGFHUWLILHGZLWKWKH
$PHULFDQ%RDUGRI,QWHUYHQWLRQDO3DLQ3K\VLFLDQVDQGWKH$PHULFDQ$VVRFLDWLRQRI3K\VLFLDQ
6SHFLDOWLHVWRWKHOLVWRIWKRVHZKRDUHH[HPSWHGIURPUHIHUULQJWKHLUSDWLHQWVZLWKVLJQVRIVXEVWDQFH
XVHGLVRUGHUWRDVSHFLDOLVW
5XOH%6WDQGDUGVIRUWKH3UHVFULELQJRI&RQWUROOHG6XEVWDQFHVIRUWKH7UHDWPHQWRI$FXWH3DLQ
%RDUGRI'HQWLVWU\
5HOHYDQFHWR3DLQ6SHFLDOLVWV7KHGHQWLVWVKDOOUHIHUWKHSDWLHQWDVQHFHVVDU\IRUDGGLWLRQDOHYDOXDWLRQ
DQGWUHDWPHQWLQRUGHUWRDFKLHYHWUHDWPHQWREMHFWLYHV7KHPDQDJHPHQWRISDLQLQSDWLHQWVZLWKD
KLVWRU\RIVXEVWDQFHDEXVHRUZLWKDFRPRUELGSV\FKLDWULFGLVRUGHUUHTXLUHVH[WUDFDUHPRQLWRULQJDQG
GRFXPHQWDWLRQDQGPD\UHTXLUHFRQVXOWDWLRQZLWKRUUHIHUUDOWRDQH[SHUWLQWKHPDQDJHPHQWRIVXFK
SDWLHQWV
*HRUJLD
3DLQ0DQDJHPHQW&OLQLFVKHDOWKFDUHSURIHVVLRQDOVZKRPXVWEHRQVLWHUHYLVHDSURYLVLRQ
$FW
5HOHYDQFHWR3DLQ6SHFLDOLVWV5HYLVHVDSURYLVLRQUHODWLQJWRWKHKHDOWKFDUHSURIHVVLRQDOVZKRPXVW
EHRQVLWHDWDSDLQPDQDJHPHQWFOLQLFLQRUGHUIRUWKHFOLQLFWRSURYLGHPHGLFDOWUHDWPHQWRUVHUYLFHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
.DQVDV
-RLQW3ROLF\6WDWHPHQWIURPWKH.DQVDV%RDUGVRI+HDOLQJ$UWV1XUVLQJDQG3KDUPDF\RQWKH8VHRI
&RQWUROOHG6XEVWDQFHVIRUWKH7UHDWPHQWRI&KURQLF3DLQ
5HOHYDQFHWR3DLQ6SHFLDOLVWV7KHKHDOWKFDUHSURYLGHUVKRXOGEHZLOOLQJWRUHIHUWKHSDWLHQWDV
QHFHVVDU\IRUDGGLWLRQDOHYDOXDWLRQDQGWUHDWPHQWLQRUGHUWRDFKLHYHWUHDWPHQWREMHFWLYHV6SHFLDO
DWWHQWLRQVKRXOGEHJLYHQWRWKRVHSDWLHQWVZLWKFRPRUELGSV\FKLDWULFGLVRUGHUVDQGWKRVHZKRDUHDW
ULVNIRUPLVXVHRUGLYHUVLRQRIWKHLUPHGLFDWLRQV7KHPDQDJHPHQWRISDLQLQSDWLHQWVZLWKDKLVWRU\RI
VXEVWDQFHDEXVHRUZLWKDFRPRUELGSV\FKLDWULFGLVRUGHUFDQEHFKDOOHQJLQJDQGH[WUDFDUH
PRQLWRULQJGRFXPHQWDWLRQDQGFRQVXOWDWLRQZLWKRUUHIHUUDOWRDQH[SHUWVLQWKHPDQDJHPHQWRI
VXFKSDWLHQWVPD\EHDSSURSULDWH,QDGGLWLRQPDQ\SDWLHQWVZLWKFKURQLFSDLQPD\EHQHILWIURP
UHIHUUDOWRSURYLGHUVZLWKRWKHUDUHDVRIH[SHUWLVHWRGHYHORSDPXOWLPRGDOLW\DSSURDFKWRSDLQFRQWURO
1HYDGD
0HGLFDLG6HUYLFHV0DQXDO'LYLVLRQRI+HDOWK&DUH)LQDQFLQJDQG3ROLF\
5HOHYDQFHWR3DLQ6SHFLDOLVWV2SLRLGVDUHVXEMHFWWRSULRUDXWKRUL]DWLRQVWHSWKHUDS\FOLQLFDOFULWHULD
DQGTXDQWLW\OLPLWV2SLRLGVDUHRQO\FRYHUHGZLWKRXWSULRUDXWKRUL]DWLRQIRULQLWLDOSUHVFULSWLRQVRI
GD\VRUOHVVIRUDWRWDORIGD\SUHVFULSWLRQVLQDQ\UROOLQJPRQWKSHULRGDQGIRUSUHVFULSWLRQV
IRUOHVVWKDQ00(GD\7RH[FHHGWKHTXDQWLW\OLPLWVWKHSDWLHQWPXVWKDYHFKURQLFSDLQWKDW
FDQQRWEHFRQWUROOHGWKURXJKXVHRIQRQRSLRLGVWKHORZHVWHIIHFWLYHGRVHPXVWEHXVHGDQGDSDLQ
FRQWUDFWPXVWEHRQILOH([FHSWLRQVWRWKHOLPLWVH[LVWIRUFDQFHUUHODWHGSDLQSRVWVXUJLFDOSDLQ
SDOOLDWLYHDQGORQJWHUPFDUHWKRVHZLWK+,9$,'6DQGSUHVFULSWLRQVZULWWHQE\RULQFRQVXOWDWLRQ
ZLWKDSDLQVSHFLDOLVW
1HZ+DPSVKLUH
0HG2SLRLG3UHVFULELQJ%RDUGRI0HGLFLQH
5HOHYDQFHWR3DLQ6SHFLDOLVWV$SUHVFULEHURIRSLRLGVPXVWGRFXPHQWWKHFRQVLGHUDWLRQRID
FRQVXOWDWLRQZLWKDQDSSURSULDWHVSHFLDOLVWZKHQWKHSDWLHQWUHFHLYHVD00(GD\GRVHIRUORQJHU
WKDQGD\V
1XU2SLRLG3UHVFULELQJ%RDUGRI1XUVLQJ
5HOHYDQFHWR3DLQ6SHFLDOLVWV$SUHVFULEHURIRSLRLGVPXVWGRFXPHQWWKHFRQVLGHUDWLRQRID
FRQVXOWDWLRQZLWKDQDSSURSULDWHVSHFLDOLVWZKHQWKHSDWLHQWUHFHLYHVD00(GD\GRVHIRUORQJHU
WKDQGD\V
1RUWK'DNRWD
1RUWK'DNRWD7UL5HJXODWRU3RVLWLRQ6WDWHPHQWRQ2SLRLG3UHVFULELQJ'LVSHQVLQJ%RDUGVRI0HGLFLQH
1XUVLQJDQG3KDUPDF\
5HOHYDQFHWR3DLQ6SHFLDOLVWV,QRUGHUWREDODQFHWKHULVNRISRWHQWLDOPLVXVHZLWKOHJLWLPDWHSDLQ
FRQWURODOOKHDOWKFDUHSURIHVVLRQDOVVKRXOGDVWKHLUVFRSHRISUDFWLFHDOORZVXSKROGWKHLUSURIHVVLRQDO
REOLJDWLRQWRSXUVXHHGXFDWLRQDORSSRUWXQLWLHVWRIXUWKHUWKHLUNQRZOHGJHRQVWDQGDUGVRIFDUHDQG
HYLGHQFHEDVHGDSSURDFKHVWRSDLQPDQDJHPHQWLQFOXGLQJEXWQRWOLPLWHGWRWKH&'&RSLRLG
SUHVFULELQJJXLGHOLQHV7KH\VKRXOGDOVRUHIHUSDWLHQWVWRRWKHUSURYLGHUVVXFKDVWUHDWPHQW
VSHFLDOLVWVZKHQDSSURSULDWH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
2KLR
&KDSWHU&RQWUROOHG6XEVWDQFHV6WDWH0HGLFDO%RDUG
5HOHYDQFHWR3DLQ6SHFLDOLVWV/LPLWVRSLRLGVLQH[FHVVRI00(GD\ZLWKRXWDUHFRPPHQGDWLRQ
IURPDERDUGFHUWLILHGSDLQVSHFLDOLVW
3HQQV\OYDQLD
*HULDWULF3DLQ2SLRLG8VHDQG6DIH3UHVFULELQJ'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR3DLQ6SHFLDOLVWV5DUHO\DUHGRVHVRIRUDOPRUSKLQHVXOIDWHHTXLYDOHQWVRIPJDGD\RU
PRUHQHFHVVDU\,IGRVDJHVRIRUDOPRUSKLQHVXOIDWHHTXLYDOHQWVUHDFKPJGDLO\WKHQWDSHULQJRU
UHIHUUDOWRDSDLQVSHFLDOLVWVKRXOGEHFRQVLGHUHG
7HQQHVVHH
5HODWLYHWR4XDOLILFDWLRQVIRUD3DLQ0DQDJHPHQW6SHFLDOLVW3XE&K
5HOHYDQFHWR3DLQ6SHFLDOLVWV6SHFLILHVWKDWRQDQGDIWHU-XO\DQHZDSSOLFDQWPD\RQO\
TXDOLI\DVDSDLQPDQDJHPHQWVSHFLDOLVWWKURXJKERDUGFHUWLILFDWLRQE\WKH$PHULFDQERDUGRI
LQWHUYHQWLRQDOSDLQSK\VLFLDQV$%,33E\SDVVLQJSDUWVDQGRILWVH[DPLQDWLRQDQGKROGLQJDQ
XQHQFXPEHUHG7HQQHVVHHOLFHQVHDQGPDLQWDLQLQJWKHPLQLPXPQXPEHURI&0(KRXUVLQSDLQ
PDQDJHPHQWWRVDWLVI\UHWHQWLRQRI$%,33GLSORPDWHVWDWXV
3K\VLFLDQVDQG6XUJHRQV$VHQDFWHGUHYLVHVFHUWDLQUHTXLUHPHQWVJRYHUQLQJSDLQPDQDJHPHQWFOLQLFVDQG
SDLQPDQDJHPHQWVSHFLDOLVWV3XE&K
5HOHYDQFHWR3DLQ6SHFLDOLVWV6XEVWLWXWHVH[LVWLQJODQJXDJHWKDWUHDG³SDLQPHGLFLQH´ZLWK³SDLQ
PHGLFLQHRUSDLQPDQDJHPHQW´$PHQGVTXDOLILFDWLRQVUHODWHGWRZKRPD\SUDFWLFHLQWHUYHQWLRQDOSDLQ
PDQDJHPHQW
$VHQDFWHGPDNHVYDULRXVFKDQJHVWRWKHUHTXLUHPHQWVIRUSUHVFULELQJGLVSHQVLQJDQGUHSRUWLQJRIRSLRLGV
3XE&K
5HOHYDQFHWR3DLQ6SHFLDOLVWV$VZLWKSULRUWRWKHSDVVDJHRI3XEOLF&KDSWHUDKHDOWKFDUH
SUDFWLWLRQHUFDQWUHDWDSDWLHQWZLWKDWKUHHGD\VXSSO\RIDQRSLRLGDWDWRWDOGRVDJHRIPRUSKLQH
PLOOLJUDPHTXLYDOHQW00(WRWDOGRVDJHZLWKRXWDQ\QHZUHTXLUHPHQWV$KHDOWKFDUHSUDFWLWLRQHU
PD\WUHDWDSDWLHQWZLWKPRUHWKDQDWKUHHGD\VXSSO\RIDQRSLRLGLIWKHKHDOWKFDUHSUDFWLWLRQHUWUHDWV
WKHSDWLHQWZLWKQRPRUHWKDQRQHSUHVFULSWLRQIRUDQRSLRLGSHUHQFRXQWHUDQGPHHWVFHUWDLQ
HYDOXDWLRQDQGGRFXPHQWDWLRQUHTXLUHPHQWV,IDKHDOWKFDUHSUDFWLWLRQHUWUHDWVDSDWLHQWZLWKPRUHWKDQ
DWKUHHGD\VXSSO\RIDQRSLRLGWKHKHDOWKFDUHSUDFWLWLRQHUPD\WUHDWWKHSDWLHQWZLWKQRPRUHWKDQD
WHQGD\VXSSO\DQGZLWKDGRVDJHWKDWGRHVQRWH[FHHGDWRWDORIDILYHKXQGUHGPRUSKLQH
PLOOLJUDPHTXLYDOHQWGRVH,QUDUHFDVHVDKHDOWKFDUHSUDFWLWLRQHUPD\WUHDWDSDWLHQWZLWKXSWRD
WZHQW\GD\VXSSO\RIDQRSLRLGDQGZLWKDGRVDJHWKDWGRHVQRWH[FHHGDWRWDORIDQHLJKWKXQGUHGILIW\
PRUSKLQHPLOOLJUDPHTXLYDOHQWGRVH,QFOXGHVH[HPSWLRQVLQFOXGLQJH[HPSWLRQVVSHFLILFWRSDLQ
VSHFLDOLVWV
9HUPRQW
5XOH*RYHUQLQJWKH3UHVFULELQJRI2SLRLGVIRU3DLQ'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR3DLQ6SHFLDOLVWV5HTXLUHVFRQVXOWDWLRQZLWKRUUHIHUUDOWRDSDLQVSHFLDOLVWDWFHUWDLQ
WLPHVGXULQJWUHDWPHQW
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
:DVKLQJWRQ
:653RGLDWULF0HGLFDO%RDUG
5HOHYDQFHWR3DLQ6SHFLDOLVWV7KHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGLVRQHKXQGUHGWZHQW\PLOOLJUDPV
0('SHUGD\8QOHVVWKHFRQVXOWDWLRQLVH[HPSWXQGHU:$&RUDSRGLDWULF
SK\VLFLDQZKRSUHVFULEHVDGRVDJHDPRXQWDWRUDERYHWKHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGPXVW
FRPSO\ZLWKWKHSDLQPDQDJHPHQWVSHFLDOLVWFRQVXOWDWLRQUHTXLUHPHQWVGHVFULEHGLQ:$&
:651XUVLQJ&DUH4XDOLW\$VVXUDQFH&RPPLVVLRQ
5HOHYDQFHWR3DLQ6SHFLDOLVWV7KHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGLVRQHKXQGUHGWZHQW\PLOOLJUDPV
0('SHUGD\8QOHVVWKHFRQVXOWDWLRQLVH[HPSWXQGHU:$&RUDSRGLDWULF
SK\VLFLDQZKRSUHVFULEHVDGRVDJHDPRXQWDWRUDERYHWKHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGPXVW
FRPSO\ZLWKWKHSDLQPDQDJHPHQWVSHFLDOLVWFRQVXOWDWLRQUHTXLUHPHQWVGHVFULEHGLQ:$&
:65%RDUGRI2VWHRSDWKLF0HGLFLQHDQG6XUJHU\
5HOHYDQFHWR3DLQ6SHFLDOLVWV7KHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGLVRQHKXQGUHGWZHQW\PLOOLJUDPV
0('SHUGD\8QOHVVWKHFRQVXOWDWLRQLVH[HPSWXQGHU:$&RUDSRGLDWULF
SK\VLFLDQZKRSUHVFULEHVDGRVDJHDPRXQWDWRUDERYHWKHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGPXVW
FRPSO\ZLWKWKHSDLQPDQDJHPHQWVSHFLDOLVWFRQVXOWDWLRQUHTXLUHPHQWVGHVFULEHGLQ:$&
:65'HQWDO4XDOLW\$VVXUDQFH&RPPLVVLRQ
5HOHYDQFHWR3DLQ6SHFLDOLVWV7KHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGLVRQHKXQGUHGWZHQW\PLOOLJUDPV
0('SHUGD\8QOHVVWKHFRQVXOWDWLRQLVH[HPSWXQGHU:$&RUDSRGLDWULF
SK\VLFLDQZKRSUHVFULEHVDGRVDJHDPRXQWDWRUDERYHWKHPDQGDWRU\FRQVXOWDWLRQWKUHVKROGPXVW
FRPSO\ZLWKWKHSDLQPDQDJHPHQWVSHFLDOLVWFRQVXOWDWLRQUHTXLUHPHQWVGHVFULEHGLQ:$&
:HVW9LUJLQLD
2SLRLG5HGXFWLRQ$FW&KDSWHU
5HOHYDQFHWR3DLQ6SHFLDOLVWV'HILQHV³SDLQVSHFLDOLVW´WRPHDQDSUDFWLWLRQHUZKRLVERDUGFHUWLILHGLQ
SDLQPDQDJHPHQWRUDUHODWHGILHOG$WWKHWLPHRIWKHLVVXDQFHRIWKHWKLUGSUHVFULSWLRQRSLRLGWKH
SUDFWLWLRQHUVKDOOFRQVLGHUUHIHUULQJWKHSDWLHQWWRDSDLQFOLQLFRUDSDLQVSHFLDOLVW7KHSUDFWLWLRQHU
VKDOOGLVFXVVWKHEHQHILWVRIVHHNLQJWUHDWPHQWWKURXJKDSDLQFOLQLFRUDSDLQVSHFLDOLVWDQGSURYLGH
KLPRUKHUZLWKDQXQGHUVWDQGLQJRIDQ\ULVNVDVVRFLDWHGE\FKRRVLQJQRWWRSXUVXHWKDWDVDQRSWLRQ,I
WKHSDWLHQWGHFOLQHVWRVHHNWUHDWPHQWIURPDSDLQFOLQLFRUDSDLQVSHFLDOLVWDQGRSWVWRUHPDLQDSDWLHQW
RIWKHSUDFWLWLRQHUWKHSUDFWLWLRQHUPXVWIROORZFHUWDLQVWDWXWRU\UHTXLUHPHQWVUHJDUGLQJSDWLHQW
HYDOXDWLRQDQGGRFXPHQWDWLRQ&RQWDLQVH[FHSWLRQV
:LVFRQVLQ
3DLQFOLQLFFHUWLILFDWLRQDQGUHTXLUHPHQWVJUDQWLQJUXOHPDNLQJDXWKRULW\DQGSURYLGLQJDSHQDOW\
$FW
5HOHYDQFHWR3DLQ6SHFLDOLVWV'HILQHV³3DLQ&OLQLF´DQGVHWVUHTXLUHPHQWVIRUWKHRSHUDWLRQRIVXFK
FOLQLFV$GRSWVUHTXLUHPHQWVUHODWHGWRPHGLFDOGLUHFWRUVSD\PHQWPHWKRGVGLUHFWGLVSHQVLQJDQG
PXOWLSOHORFDWLRQV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
:\RPLQJ
7UHDWPHQW*XLGHOLQHV&KURQLF1RQ0DOLJQDQW3DLQ'HSDUWPHQWRI:RUNIRUFH6HUYLFHV'LYLVLRQRI
:RUNHUV
&RPSHQVDWLRQ
5HOHYDQFHWR3DLQ6SHFLDOLVWV5HFRPPHQGVFRQVXOWLQJZLWKDSDLQVSHFLDOLVWLIDGRVHLVLQH[FHVVRI
00(GD\IRUSDWLHQWVZKRKDYHQRWLPSURYHGDIWHUPRQWKVIRUWKRVHZLWKDKLVWRU\RI
FKHPLFDOGHSHQGHQF\HWF
3ROLFLHV'LUHFWO\5HOHYDQWWR)'$
$GRSWHG
(QVXULQJ3DWLHQW$FFHVVDQG(IIHFWLYH'UXJ(QIRUFHPHQW$FWRI3XEOLF/DZ
5HOHYDQFHWR)'$5HTXLUHV)'$6$0+6$$+54DQG&'&LQFRRUGLQDWLRQZLWK'($WRUHSRUW
WR&RQJUHVVRQREVWDFOHVWROHJLWLPDWHSDWLHQWDFFHVVWRFRQWUROOHGVXEVWDQFHVGLYHUVLRQRIFRQWUROOHG
VXEVWDQFHVKRZDJHQF\DQGSKDUPDFHXWLFDOPDQXIDFWXUHUFROODERUDWLRQFDQDGGUHVVWKHVHLVVXHV
HQKDQFHPHQWVWR3'03VWKHDYDLODELOLW\RIDQGJDSVLQPHGLFDOHGXFDWLRQWUDLQLQJRSSRUWXQLWLHVDQG
FRPSUHKHQVLYHFOLQLFDOJXLGDQFHIRUSDLQPDQDJHPHQWDQGRSLRLGSUHVFULELQJDQGLPSURYHPHQWVWR
SUHVFULSWLRQRSLRLGUHSRUWLQJUHTXLUHPHQWVWRWKDWWKH3XEOLFDQG&RQJUHVVKDYHPRUHLQIRUPDWLRQUH
RSLRLGVSUHVFULEHGDQQXDOO\GLVSHQVLQJRXWOLHUVDQGWUHQGV
3DLQ0DQDJHPHQWDQGWKH2SLRLG(SLGHPLF%DODQFLQJ6RFLHWDODQG,QGLYLGXDO%HQHILWVDQG5LVNVRI
3UHVFULSWLRQ2SLRLG8VH1DWLRQDO$FDGHPLHVRI6FLHQFHV(QJLQHHULQJDQG0HGLFLQH1$6(0&RPPLWWHH
RQ3DLQ0DQDJHPHQWDQG5HJXODWRU\6WUDWHJLHVWR$GGUHVV3UHVFULSWLRQ2SLRLG$EXVH
5HOHYDQFHWR)'$7KLVUHSRUWLVDUHVXOWRIWKH86)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$DVNLQJWKH
1DWLRQDO$FDGHPLHVRI6FLHQFHV(QJLQHHULQJDQG0HGLFLQHWRFRQYHQHDFRPPLWWHHWRXSGDWHWKH
VWDWHRIWKHVFLHQFHRQSDLQUHVHDUFKFDUHDQGHGXFDWLRQDQGWRLGHQWLI\DFWLRQVWKH)'$DQGRWKHUV
FDQWDNHWRUHVSRQGWRWKHRSLRLGHSLGHPLF7KHUHVXOWLQJUHSRUWVWDWHVWKDWDVXVWDLQHGFRRUGLQDWHG
HIIRUWLVQHFHVVDU\WRVWHPWKHVWLOOHVFDODWLQJSUHYDOHQFHRIRSLRLGUHODWHGKDUPVLQFOXGLQJDFXOWXUH
FKDQJHLQSUHVFULELQJIRUFKURQLFQRQFDQFHUSDLQDJJUHVVLYHUHJXODWLRQRIRSLRLGVE\WKH)'$DQG
PXOWLSURQJHGSROLFLHVE\VWDWHDQGORFDOJRYHUQPHQWV+RZHYHUWKHFRPPLWWHHDOVRFRXQVHOVDJDLQVW
DUELWUDU\UHVWULFWLRQVRQDFFHVVWRRSLRLGVE\VXIIHULQJSDWLHQWVZKRVHKHDOWKFDUHSURYLGHUVKDYH
SUHVFULEHGWKHVHGUXJVUHVSRQVLEO\0DMRUSRLQWVUHODWHWRUHVWULFWLQJWKHODZIXOVXSSO\RIRSLRLGV
LQIOXHQFLQJSUHVFULELQJSUDFWLFHVXVHRIDOWHUQDWLYHVXVHRI3'03UHGXFLQJGHPDQGDQGUHGXFLQJ
KDUP
6XEVWDQFH8VH'LVRUGHU3UHYHQWLRQWKDW3URPRWHV2SLRLG5HFRYHU\DQG7UHDWPHQWIRU3DWLHQWVDQG
&RPPXQLWLHV$FWRUWKH6833257IRU3DWLHQWVDQG&RPPXQLWLHV$FW3XEOLF/DZ
5HOHYDQFHWR)'$5HTXLUHVWKH)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$WRGHYHORSJXLGDQFHUHJDUGLQJ
DOWHUQDWLYHPHWKRGVIRUFROOHFWLQJGDWDRQRSLRLGVSDULQJLHWKHXVHRIGUXJVWKDWUHGXFHSDLQZKLOH
DOVRDOORZLQJUHGXFHGXVHRUDYRLGDQFHRIRUDORSLRLGVDQGXVLQJVXFKLQIRUPDWLRQLQSURGXFWODEHOV
)'$(GXFDWLRQ%OXHSULQWIRU+HDOWK&DUH3URYLGHUV,QYROYHGLQWKH7UHDWPHQWDQG0RQLWRULQJRI3DWLHQWV
ZLWK3DLQ)RRGDQG'UXJ$GPLQLVWUDWLRQ
5HOHYDQFHWR)'$5HYLVHG)'$5(06UHODWHGWRRSLRLGV,VVXHGDQXPEHURIXSGDWHGQHZ
VWUDWHJLHVLQFOXGLQJPRGLILFDWLRQVWR5(06SURJUDPVWKDWUHTXLUHIRUH[DPSOHWUDLQLQJRQQRQ
RSLRLGSDLQDOWHUQDWLYHVWUDLQLQJIRUSUHVFULELQJUHODWHGWRLPPHGLDWHUHOHDVHIRUPXODWLRQVRIRSLRLG
GUXJVDQGEURDGHUWUDLQLQJWKDWFRYHUVPRUHKHDOWKFDUHSURYLGHUVZKRKHOSPDQDJHSDWLHQWVZLWK
SDLQ$GGLWLRQDOO\WKHUHLVDSODQWROHYHUDJHQXWULWLRQDQGGLHWDVZD\VWRUHGXFHPRUELGLW\DQG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
PRUWDOLW\IURPGLVHDVH)'$KDVLGHQWLILHGGLHWDU\IDFWRUVDVRQHFRQWULEXWRUWRSDWLHQWV¶SDLQ
H[SHULHQFH
3URSRVHG
&KDQJLQJWKH&XOWXUHRIWKH)'$$FW6
5HOHYDQFHWR)'$7KH6HFUHWDU\RI+HDOWKDQG+XPDQ6HUYLFHVDFWLQJWKURXJKWKH&RPPLVVLRQHURI
)RRGDQG'UXJVVKDOODPHQGWKHPLVVLRQVWDWHPHQWRIWKH)RRGDQG'UXJ$GPLQLVWUDWLRQWRLQFOXGH
WKHIROORZLQJVWDWHPHQW³7KH)'$LVDOVRUHVSRQVLEOHIRUSURWHFWLQJWKHSXEOLFKHDOWKE\VWURQJO\
FRQVLGHULQJWKHGDQJHURIDGGLFWLRQDQGRYHUGRVHGHDWKDVVRFLDWHGZLWKSUHVFULSWLRQRSLRLG
PHGLFDWLRQVZKHQDSSURYLQJWKHVHPHGLFDWLRQVDQGZKHQUHJXODWLQJWKHPDQXIDFWXULQJPDUNHWLQJ
DQGGLVWULEXWLRQRIRSLRLGPHGLFDWLRQV´
)'$$FFRXQWDELOLW\IRU3XEOLF6DIHW\$FW6
5HOHYDQFHWR)'$$ELOOWRHVWDEOLVKSURFHGXUHVUHJDUGLQJWKHDSSURYDORIRSLRLGGUXJVE\WKH)RRG
DQG'UXJ$GPLQLVWUDWLRQ%HIRUHDSSURYLQJDQ\RSLRLGDJDLQVWWKHUHFRPPHQGDWLRQRIWKHDGYLVRU\
FRPPLWWHHWKH)'$PXVWUHSRUWWR&RQJUHVVRQPHGLFDODQGVFLHQWLILFHYLGHQFHUHJDUGLQJSDWLHQW
VDIHW\WKDWFOHDUO\VXSSRUWVWKH&RPPLVVLRQHU
VGHFLVLRQWRDSSURYHWKHRSLRLGGUXJDJDLQVWWKH
UHFRPPHQGDWLRQRIWKHDGYLVRU\FRPPLWWHHDQGDGLVFORVXUHRIDQ\SRWHQWLDOFRQIOLFWVRILQWHUHVW
WKDWPD\H[LVWUHJDUGLQJDQ\RIILFLDORIWKH)RRGDQG'UXJ$GPLQLVWUDWLRQZKRZDVLQYROYHGLQWKH
GHFLVLRQWRDSSURYHWKHGUXJSULRUWRWKH&RPPLVVLRQHU
VILQDOGHFLVLRQXQGHUVXEVHFWLRQ6XFKGUXJ
VKDOOQRWEHLQWURGXFHGRUGHOLYHUHGIRULQWURGXFWLRQLQWRLQWHUVWDWHFRPPHUFHXQWLOVXFKUHSRUWKDV
EHHQVXEPLWWHG
3URWHFWLQJ$PHULFDQVIURP'DQJHURXV2SLRLGV$FW6
5HOHYDQFHWR)'$7RUHTXLUHWKH)RRGDQG'UXJ$GPLQLVWUDWLRQWRUHYRNHWKHDSSURYDORIRQHRSLRLGSDLQ
PHGLFDWLRQIRUHDFKQHZRSLRLGSDLQPHGLFDWLRQDSSURYHG
3ROLFLHV'LUHFWO\5HIHUULQJWR&'&*XLGHOLQHV
6LQFHWKH)'$UHOHDVHGWKHLQLWLDO(5/$2SLRLG$QDOJHVLFV5LVN(YDOXDWLRQDQG0LWLJDWLRQ6WUDWHJ\
5(06LQWKH&'&UHOHDVHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ7KH
PRVWUHFHQWO\XSGDWHGYHUVLRQRIWKH2SLRLG$QDOJHVLF5(06DFNQRZOHGJHVWKLVVWDWLQJWKDWKHDOWK
FDUHSURYLGHUVZLOOJDLQDJUHDWHUXQGHUVWDQGLQJRIVDIHRSLRLGSUDFWLFHVE\UHYLHZLQJWKH&'&JXLGHOLQHV
7KH&'&*XLGHOLQHSURYLGHVUHFRPPHQGDWLRQVIRUSULPDU\FDUHFOLQLFLDQVZKRDUHSUHVFULELQJRSLRLGVIRU
FKURQLFSDLQRXWVLGHRIDFWLYHFDQFHUWUHDWPHQWSDOOLDWLYHFDUHDQGHQGRIOLIHFDUH7KHJXLGHOLQHDGGUHVVHV
ZKHQWRLQLWLDWHRUFRQWLQXHRSLRLGVIRUFKURQLFSDLQRSLRLGVHOHFWLRQGRVDJHGXUDWLRQIROORZXSDQG
GLVFRQWLQXDWLRQDQGDVVHVVLQJULVNDQGDGGUHVVLQJKDUPVRIRSLRLGXVH7KHJXLGHOLQHLVLQWHQGHGWR
LPSURYHFRPPXQLFDWLRQEHWZHHQFOLQLFLDQVDQGSDWLHQWVDERXWWKHULVNVDQGEHQHILWVRIRSLRLGWKHUDS\IRU
FKURQLFSDLQLPSURYHWKHVDIHW\DQGHIIHFWLYHQHVVRISDLQWUHDWPHQWDQGUHGXFHWKHULVNVDVVRFLDWHGZLWK
ORQJWHUPRSLRLGWKHUDS\LQFOXGLQJRSLRLGXVHGLVRUGHURYHUGRVHDQGGHDWK
6LQFHWKHUHOHDVHRIWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQSROLFLHVLQVWDWHVDQG
WKH'LVWULFWRI&ROXPELDDGRSWHGKDYHGLUHFWO\UHIHUUHGWRDQGRULQFRUSRUDWHGWKH&'&
*XLGHOLQHE\UHIHUHQFH
7KLVOLVWGRHVQRWLQFOXGHSROLFLHVWKDWPHUHO\DGRSWHGSROLFLHVVLPLODUWRWKH&'&*XLGHOLQHWKHSROLF\KDG
WRGLUHFWO\UHIHUWRWKH&'&*XLGHOLQHWREHLQFOXGHG
$ODVND &RQQHFWLFXW ,GDKR
$UNDQVDV 'LVWULFWRI&ROXPELD ,RZD
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
0DLQH 1HZ0H[LFR 7HQQHVVHH
0DVVDFKXVHWWV 1HZ<RUN 8WDK
0LFKLJDQ 1RUWK&DUROLQD 9HUPRQW
0LVVLVVLSSL 1RUWK'DNRWD 9LUJLQLD
1HEUDVND 2UHJRQ :DVKLQJWRQ
1HZ+DPSVKLUH 5KRGH,VODQG
1HZ-HUVH\ 6RXWK&DUROLQD
$ODVND
3ROLFLHVDQG3URFHGXUHV3UHVFULELQJ&RQWUROOHG6XEVWDQFHV$ODVND6WDWH0HGLFDO%RDUG
5HOHYDQFHWR&'&*XLGHOLQH8SGDWHGDSUHYLRXVO\H[LVWLQJJXLGHOLQHWRLQFOXGHWKH&'&*XLGHOLQH
DVDQDYDLODEOHWRROIRUULVNPLWLJDWLRQ
$ODVND'HSDUWPHQWRI+HDOWKDQG6RFLDO6HUYLFHV'LYLVLRQRI3XEOLF$VVLVWDQFH0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH$ODVND0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&
*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
$UNDQVDV
$UNDQVDV0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH$UNDQVDV0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ
2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
&RQQHFWLFXW
+XVN\+HDOWK0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH&RQQHFWLFXW0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&
*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
'LVWULFWRI&ROXPELD
'&0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH'&0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQH
IRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
,GDKR
,GDKR'HSDUWPHQWRI+HDOWKDQG:HOIDUH0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH,GDKR0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGV
IRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
,RZD
,RZD'HSDUWPHQWRI+XPDQ6HUYLFHV0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH,RZD0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQH
IRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
0DLQH
'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV0DLQH&DUH6HUYLFHV0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH0DLQH&DUH6HUYLFHVH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&
*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
0DVVDFKXVHWWV
2SLRLG&RQWUROOHG6XEVWDQFH3URWRFRO'HSDUWPHQWRI,QGXVWULDO$FFLGHQWV
5HOHYDQFHWR&'&*XLGHOLQH$GRSWV&'&GRVDJHUHFRPPHQGDWLRQVWKDWVXJJHVWDYRLGLQJLQFUHDVLQJ
WKHWRWDOGDLO\GRVHRIRSLRLGVDERYH00(GD\DQGRIIHULQJQDOR[RQHZKHQDSDWLHQWLVRQGRVHV
RIRYHU00(GD\
0DVV+HDOWK0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH0DVV+HDOWKKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU
&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
0LFKLJDQ
0LFKLJDQ0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH0LFKLJDQ0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&
*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
0LVVLVVLSSL
0LVVLVVLSSL'LYLVLRQRI0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH0LVVLVVLSSL'LYLVLRQRI0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSW
WKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
1HEUDVND
1HEUDVND'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH1HEUDVND0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ
2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV'LYLVLRQRI0HGLFDLGDQG/RQJ7HUP&DUH
5HOHYDQFHWR&'&*XLGHOLQH1HEUDVND0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRUHTXLUHWKDW0DQDJHG
&DUH2UJDQL]DWLRQVDGRSWWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ
1HZ+DPSVKLUH
1HZ+DPSVKLUH0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH1HZ+DPSVKLUH0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH
&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
)XUWKHUWKH\SODQQHGWRUHTXLUHWKDW0DQDJHG&DUH2UJDQL]DWLRQVDGRSWWKHJXLGHOLQH
1HZ-HUVH\
$VVHPEO\5HVROXWLRQ
5HOHYDQFHWR&'&*XLGHOLQH8UJHV6WDWH%RDUGRI0HGLFDO([DPLQHUVWRDGRSW&'&JXLGHOLQHIRU
SUHVFULELQJRSLRLGVIRUFKURQLFSDLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1HZ0H[LFR
5HFRPPHQGDWLRQV*RYHUQRU¶V3UHVFULSWLRQ'UXJ0LVXVHDQG2YHUGRVH3UHYHQWLRQDQG3DLQ
0DQDJHPHQW&RXQFLO
5HOHYDQFHWR&'&*XLGHOLQH3UDFWLWLRQHUVVKRXOGDYRLGSUHVFULELQJRSLRLGSDLQPHGLFDWLRQVDQG
EHQ]RGLD]HSLQHVFRQFXUUHQWO\ZKHQHYHUSRVVLEOH3UDFWLWLRQHUVVKRXOGDGKHUHWRWKHVXPPDU\RIWKH
&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ&'&
*XLGHOLQHSXEOLVKHGLQWKH1HZ(QJODQG-RXUQDORI0HGLFLQHDQGWKHFRPSOHWH&'&*XLGHOLQHLQ
DGGLWLRQWRWKHRQHSDJHVXPPDU\GRFXPHQW3URYLGHUVVKRXOGQRWXVHWKH*XLGHOLQHWRRYHUULGHD
SURYLGHU¶VMXGJHPHQWUHJDUGLQJDVSHFLILFSDWLHQWEXWUDWKHUWRJXLGHVNLOOIXODQGDSSURSULDWHSDLQ
PDQDJHPHQW7KHPHGLFDOSURYLGHUOLFHQVLQJERDUGVVKRXOGQRWXVHWKH&'&*XLGHOLQHWRVHWVWULFW
SROLF\RUWRHQIRUFHSUDFWLFHVWDQGDUGV
1HZ<RUN
'HSDUWPHQWRI+HDOWK0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH1HZ<RUN0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ
2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
1RUWK&DUROLQD
3ROLF\IRUWKHXVHRIRSLRLGVIRUWKHWUHDWPHQWRISDLQ1RUWK&DUROLQD0HGLFDO%RDUG
5HOHYDQFHWR&'&*XLGHOLQH,QRUGHUWRSURYLGHLWVOLFHQVHHVZLWKJXLGDQFHWKDWUHIOHFWVWKHPRVW
FXUUHQWPHGLFDODQGVFLHQWLILFUHVHDUFKDQGUHFRPPHQGHGSUDFWLFHVWKH%RDUGKDVGHFLGHGWRDGRSW
DQGHQGRUVHWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQZULWWHQDQGPDLQWDLQHGE\
WKH&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ³&'&´
1&0HGLFDLGDQG+HDOWK&KRLFH
5HOHYDQFHWR&'&*XLGHOLQH1RUWK&DUROLQD0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&
*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
1RUWK'DNRWD
1RUWK'DNRWD7UL5HJXODWRU3RVLWLRQ6WDWHPHQWRQ2SLRLG3UHVFULELQJ'LVSHQVLQJ%RDUGVRI0HGLFLQH
1XUVLQJDQG3KDUPDF\
5HOHYDQFHWR&'&*XLGHOLQH,QRUGHUWREDODQFHWKHULVNRISRWHQWLDOPLVXVHZLWKOHJLWLPDWHSDLQ
FRQWURODOOKHDOWKFDUHSURIHVVLRQDOVVKRXOGDVWKHLUVFRSHRISUDFWLFHDOORZVXSKROGWKHLUSURIHVVLRQDO
REOLJDWLRQWRSXUVXHHGXFDWLRQDORSSRUWXQLWLHVWRIXUWKHUWKHLUNQRZOHGJHRQVWDQGDUGVRIFDUHDQG
HYLGHQFHEDVHGDSSURDFKHVWRSDLQPDQDJHPHQWLQFOXGLQJEXWQRWOLPLWHGWRWKH&'&RSLRLG
SUHVFULELQJJXLGHOLQHV
2UHJRQ
2UHJRQ&KURQLF2SLRLG3UHVFULELQJ*XLGHOLQHV2UHJRQ+HDOWK$XWKRULW\3XEOLF+HDOWK
'LYLVLRQ
5HOHYDQFHWR&'&*XLGHOLQH5HOHYDQFHWR&'&*XLGHOLQH$GRSWV&'&GRVDJHUHFRPPHQGDWLRQV
WKDWVXJJHVWDYRLGLQJLQFUHDVLQJWKHWRWDOGDLO\GRVHRIRSLRLGVDERYH00(GD\DQGRIIHULQJ
QDOR[RQHZKHQDSDWLHQWLVRQGRVHVRIRYHU00(GD\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
5KRGH,VODQG
3DLQ0DQDJHPHQW2SLRLG8VHDQGWKH5HJLVWUDWLRQRI'LVWULEXWRUVRI&RQWUROOHG6XEVWDQFHVLQ5KRGH,VODQG
5,&5'HSDUWPHQWRI+HDOWK
5HOHYDQFHWR&'&*XLGHOLQH/RZHUVWKHWKUHVKROGGRVDJHWULJJHULQJDQDOR[RQHFRSUHVFULSWLRQ
WKUHVKROGIURPQLQHW\PRUSKLQHPLOOLJUDPHTXLYDOHQWV00(VWRPRUHWKDQRUHTXDOWRILIW\
00(VLQOLQHZLWKWKH&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ
VUHFRPPHQGDWLRQVRQVXFK
SUHVFULSWLRQV
6RXWK&DUROLQD
5HYLVHG-RLQW3DLQ0DQDJHPHQW*XLGHOLQHV%RDUGVRI'HQWLVWU\0HGLFDO([DPLQHUV1XUVLQJDQG3KDUPDF\
5HOHYDQFHWR&'&*XLGHOLQH$GRSWVWKH&'&*XLGHOLQHVWRWKHH[WHQWWKHUHFRPPHQGDWLRQV
GRQRWFRQIOLFWZLWKVWDWHODZ
7HQQHVVHH
7HQQ&DUH0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH7HQQ&DUHH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&*XLGHOLQHIRU
3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
8WDK
8WDK&OLQLFDO*XLGHOLQHVRQ3UHVFULELQJ2SLRLGVIRU7UHDWPHQWRI3DLQ8WDK'HSDUWPHQWRI+HDOWKDQG8WDK
0HGLFDO$VVRFLDWLRQ
5HOHYDQFHWR&'&*XLGHOLQH:KHQRSLRLGVDUHSUHVFULEHGIRUWKHWUHDWPHQWRIFKURQLFSDLQ
SUHVFULEHUVVKRXOGSUHVFULEHWKHORZHVWHIIHFWLYHGRVH3UHVFULEHUVVKRXOGXVHFDXWLRQZKHQSUHVFULELQJ
RSLRLGVDWDQ\GRVDJHVKRXOGFDUHIXOO\UHDVVHVVHYLGHQFHRILQGLYLGXDOEHQHILWVDQGULVNVZKHQ
LQFUHDVLQJGRVDJHWR!PRUSKLQHPLOOLJUDPHTXLYDOHQWV00(GD\DQGVKRXOGDYRLGLQFUHDVLQJ
GRVDJHWR!RUFDUHIXOO\MXVWLI\DGHFLVLRQWRWLWUDWHGRVDJHWR!00(GD\7KH&'&VWDWHVWKDW
DOWKRXJKWKHUHLVQRWDVLQJOHGRVDJHWKUHVKROGEHORZZKLFKRYHUGRVHULVNLVHOLPLQDWHGKROGLQJ
GRVDJHVEHORZ00(GD\ZRXOGOLNHO\UHGXFHULVNDPRQJPRVWSDWLHQWVZKRZRXOGH[SHULHQFH
IDWDORYHUGRVHDWKLJKHUSUHVFULEHGGRVDJHV8WLOL]DWLRQRIDQ\GRVHVKRXOGEHEDVHGRQLQFUHPHQWDO
IXQFWLRQDOJDLQV
&RQFXUUHQW3UHVFULSWLRQVIRU%HQ]RGLD]HSLQHVDQG2SLRLGV8WDK0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH8WDK0HGLFDLGLVLPSOHPHQWLQJDPXOWLVWDJHHIIRUWWRLGHQWLI\DQGOLPLW
WKHFRQFXUUHQWILOOLQJRIEHQ]RGLD]HSLQHDQGRSLRLGPHGLFDWLRQV7KLVLQLWLDWLYHDLPVWRVXSSRUW&'&
JXLGHOLQHVWKDWUHFRPPHQGDJDLQVWFRPELQHGXVHZKLFKLVDVVRFLDWHGZLWKULVNRIIDWDORYHUGRVH
&XUUHQWO\DQDXWRPDWHGSURFHVVPRQLWRUVDQGUHSRUWVZKHQDQLQGLYLGXDOLVFRSUHVFULEHGRSLRLGVDQG
EHQ]RGLD]HSLQHV7KHSHHUWRSHHUWHDPZLOOFRQGXFWRXWUHDFKWRLGHQWLILHGSUHVFULEHUVWRDOHUWWKHPRI
SDWLHQWVUHFHLYLQJFRQFXUUHQWWKHUDS\SURYLGHHGXFDWLRQDURXQGFRQFXUUHQWXVHDYRLGDQFHDQG
HQFRXUDJHSUHVFULSWLRQGUXJPRQLWRULQJSURJUDP3'03XVHEHIRUHSUHVFULELQJD6FKHGXOH,,
FRQWUROOHGVXEVWDQFHLQDFFRUGDQFHZLWKWKH)HGHUDO+5
2SLRLG3ROLF\&KDQJHV8WDK0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH(IIHFWLYH-XO\WKHKLJKHUFXPXODWLYHGDLO\PRUSKLQHHTXLYDOHQW
GRVH0('WKUHVKROGIRU³RSLRLGH[SHULHQFHG´LQGLYLGXDOVZLOOEHUHGXFHGWR0('7KLVZLOO
VXSSRUWRQJRLQJHIIRUWVWRDFKLHYHRQHFRPPRQ0('VWDQGDUGIRUDOO8WDK0HGLFDLGPHPEHUVRYHU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
WLPH2Q-DQXDU\8WDK0HGLFDLGDGRSWHGPRUSKLQHPLOOLJUDPHTXLYDOHQW00(DQG0('
PHWKRGRORJ\IRUDGMXGLFDWLRQRIDOORSLRLGFODLPVIRUWKHWUHDWPHQWRIQRQFDQFHUSDLQ7KLVLQLWLDWLYH
ZDVDGGHGWRH[LVWLQJRSLRLGTXDQWLW\OLPLWVDQGGD\V¶VXSSO\OLPLWDWLRQVWRVXSSRUW&'&VDIHW\
JXLGDQFHDQGEHVWSUDFWLFHVWDQGDUGV$WWKDWWLPHWZRVHWVRIGDLO\0('WKUHVKROGVZHUHHVWDEOLVKHG
DWKUHVKROGRI0('IRU³RSLRLGQDwYH´LQGLYLGXDOVZKRKDYHQRWKDGDFODLPIRUDQRSLRLGLQWKH
ODVWGD\VDQG0('IRU³RSLRLGH[SHULHQFHG´LQGLYLGXDOVZKRKDYHKDGDFODLPIRUDQRSLRLGLQ
WKHODVWGD\V
9HUPRQW
9HUPRQW0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH9HUPRQW0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ
2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
9LUJLQLD
9LUJLQLD'HSDUWPHQWRI0HGLFDO$VVLVWDQFH6HUYLFHV0HGLFDLG
5HOHYDQFHWR&'&*XLGHOLQH9LUJLQLD0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ
2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP
:DVKLQJWRQ
$GGUHVVLQJWKH2SLRLG8VH3XEOLF+HDOWK&ULVLV([HFXWLYH2UGHU
5HOHYDQFHWR&'&*XLGHOLQH7KHVWDWH$JHQF\0HGLFDO'LUHFWRUV*URXS$0'*VKDOOZRUNZLWK
WKH%UHH&ROODERUDWLYHDKHDOWKFDUHLPSURYHPHQWSDUWQHUVKLS7ULEDOJRYHUQPHQWVERDUGVDQG
FRPPLVVLRQVSURIHVVLRQDODVVRFLDWLRQVKHDOWKFDUHV\VWHPVLQVXUHUVWHDFKLQJLQVWLWXWLRQVDQGRWKHUV
WRFRQVLGHUDPHQGPHQWVWRWKHVWDWHSDLQJXLGHOLQHVDQGRWKHUWUDLQLQJDQGSROLF\PDWHULDOVFRQVLVWHQW
ZLWKWKH$0'*DQGWKH&'&RSLRLGJXLGHOLQHVWRUHGXFHXQQHFHVVDU\SUHVFULELQJIRU
DFXWHSDLQFRQGLWLRQVIRUWKHJHQHUDOSRSXODWLRQHVSHFLDOO\DGROHVFHQWV
&RQFHUQLQJRSLRLGWUHDWPHQWSURJUDPV&KDSWHU
5HOHYDQFHWR&'&*XLGHOLQH5HTXLUHVWKHYDULRXVOLFHQVLQJERDUGVDQGFRPPLVVLRQVWRDGRSWUXOHV
HVWDEOLVKLQJUHTXLUHPHQWVIRUSUHVFULELQJRSLRLGGUXJV6XFKUXOHVPD\FRQWDLQH[HPSWLRQVEDVHGRQ
WKHDPRXQWRIRSLRLGVSUHVFULEHGDPRQJRWKHUWKLQJV,QGHYHORSLQJWKHUXOHVWKHFRPPLVVLRQPXVW
FRQVLGHUWKHDJHQF\PHGLFDOGLUHFWRUV
JURXSDQGFHQWHUVIRUGLVHDVHFRQWUROJXLGHOLQH
:DVKLQJWRQ6WDWH+HDOWK&DUH$XWKRULW\0HGLFDLG3XEOLF(PSOR\HHV
5HOHYDQFHWR&'&*XLGHOLQH:DVKLQJWRQ0HGLFDLGH[SUHVVHGWKDWWKH\SODQQHGWRDGRSWWKH&'&
*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQWKHLU)HHIRU6HUYLFHSURJUDPLQ)XUWKHU
WKH\SODQQHGWRUHTXLUHWKDW0DQDJHG&DUH2UJDQL]DWLRQVDGRSWWKHJXLGHOLQH
:653RGLDWULF0HGLFDO%RDUG
5HOHYDQFHWR&'&*XLGHOLQH,IWKHSRGLDWULFSK\VLFLDQSUHVFULEHVRSLRLGVIRUHIIHFWLYHSDLQFRQWURO
IRUSHULRSHUDWLYHSDLQVXFKSUHVFULSWLRQPXVWQRWEHLQDJUHDWHUTXDQWLW\WKDQQHHGHGIRUWKHH[SHFWHG
GXUDWLRQRISDLQVHYHUHHQRXJKWRUHTXLUHRSLRLGV$WKUHHGD\VXSSO\RUOHVVZLOORIWHQEHVXIILFLHQW
PRUHWKDQDVHYHQGD\VXSSO\ZLOOUDUHO\EHQHHGHG7KHSRGLDWULFSK\VLFLDQVKDOOQRWSUHVFULEH
EH\RQGDVHYHQGD\VXSSO\ZLWKRXWFOLQLFDOGRFXPHQWDWLRQLQWKHSDWLHQWUHFRUGWRMXVWLI\WKHQHHGIRU
VXFKDTXDQWLW\)RUPRUHVSHFLILFEHVWSUDFWLFHVWKHSRGLDWULFSK\VLFLDQPD\UHIHUWRFOLQLFDOSUDFWLFH
JXLGHOLQHVLQFOXGLQJEXWQRWOLPLWHGWRWKRVHSURGXFHGE\WKHDJHQF\PHGLFDOGLUHFWRUV
JURXSWKH
&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQRUWKH%UHH&ROODERUDWLYH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
6LPLODU6WDWHPHQWVUH&'&LQ
:651XUVLQJ&DUH4XDOLW\$VVXUDQFH&RPPLVVLRQ
:65%RDUGRI2VWHRSDWKLF0HGLFLQHDQG6XUJHU\
:65'HQWDO4XDOLW\$VVXUDQFH&RPPLVVLRQ
23,2,'32/,&,(6)520121*29(510(17$/6285&(6
,QLWVFRPPXQLFDWLRQ)'$UHTXHVWHG
³«DVXPPDU\RIPDMRU«SROLF\FKDQJHVRFFXUULQJLQWKHODVW\HDUVDWWKH«ODUJHKHDOWKFDUHV\VWHP
RUSD\HU«OHYHOUHODWHGWR2$SUHVFULELQJHJPDQGDWRU\3'03FKHFNVLQLWLDOGD\V¶VXSSO\RUSLOO
OLPLWVPD[LPXPGRVHOLPLWV´
,QUHVSRQGLQJWRWKLVUHTXHVWWKHGHFLVLRQZDVPDGHWRJDWKHULQIRUPDWLRQQRWRQO\IURPKHDOWKFDUHV\VWHPV
DQGSD\HUVLHKHDOWKLQVXUHUVEXWDOVRIURPSKDUPDF\EHQHILWPDQDJHUV3%0VZKRZRUNZLWKKHDOWK
LQVXUHUVWRLPSRVHSROLFLHVUHJDUGLQJFRYHUDJHRISUHVFULSWLRQPHGLFDWLRQVDQGODUJHFKDLQSKDUPDFLHVZKLFK
DOVRKDYHHVWDEOLVKHGSROLFLHVOLPLWLQJGLVSHQVLQJRIRSLRLGDQDOJHVLFSUHVFULSWLRQV
$IWHUFRQVXOWDWLRQZLWKWKHFRQWUDFWRULWZDVGHFLGHGWRVHHNWKHUHTXHVWHGLQIRUPDWLRQIURPWKHWHQODUJHVW
KHDOWKLQVXUHUVKHDOWKFDUHV\VWHPVDQGFKDLQSKDUPDFLHVDQGIURPWKHILYHODUJHVW3%0V$QLQWHUQHWVHDUFK
ZDVFRQGXFWHGWRLGHQWLI\WKHFRQVWLWXHQWVRIHDFKRIWKHVHJURXSV,QWKHFDVHRIKHDOWKFDUHV\VWHPVVOLJKWO\
GLIIHUHQWOLVWVZHUHJHQHUDWHGZKHQPHDVXULQJE\DQQXDOUHYHQXHDQGE\QXPEHURIIDFLOLWLHVVRWKHWZROLVWV
ZHUHFRPELQHGLQWRDODUJHUOLVWRIV\VWHPV
2EWDLQLQJLQIRUPDWLRQIURPWKHVHHQWLWLHVSURYHGWREHYHU\FKDOOHQJLQJ
x (DFKLGHQWLILHGHQWLW\ZDVFRQWDFWHGWKURXJKSRLQWVRIFRQWDFWLGHQWLILHGRQLWVZHEVLWH,QPRVWFDVHV
WKHVHSRLQWVRIFRQWDFWZHUHWKHPHGLDUHODWLRQVRIILFHZKLOHLQDIHZFDVHVFRQWDFWZDVPDGHWKURXJK
ZHEIRUPVGLUHFWHGWRYDULRXVHQWLWLHVZLWKLQWKHFRPSDQLHV
x $GGLWLRQDOO\DWWHPSWVZHUHPDGHWRLGHQWLI\WKHFKLHIPHGLFDORIILFHUVRUFRPSDQ\RIILFLDOVLQ
VXEVWDQWLDOO\VLPLODUFDSDFLWLHV/LQNHG,QSURILOHVZHUHLGHQWLILHGIRUWKHVHLQGLYLGXDOVDWRIWKH
GHVLJQDWHGQRQJRYHUQPHQWDOHQWLWLHV
x )RUHDFKFRPSDQ\PHGLDUHODWLRQVSHUVRQQHOHPDLODGGUHVVHVZHEIRUPVRU/LQNHG,QSURILOHVZHUH
XVHGWRVHQGHPDLOVGHVFULELQJWKHSURMHFWDQGUHTXHVWLQJWKDWWKHDSSURSULDWHLQGLYLGXDOVUHVSRQGWR
GLVFXVVWKHUHTXHVWDQGSURYLGHWKHLQIRUPDWLRQLISRVVLEOH
x 2QO\DKDQGIXORIUHVSRQVHVWRWKHVHUHTXHVWVZDVUHFHLYHG7ZRRIWKRVHUHVSRQVHVZHUHFRRSHUDWLYH
DQGOHGWRFRQYHUVDWLRQVZLWKLQGLYLGXDOVZLWKLQWKHFRPSDQLHVZKRSURYLGHGWKHUHTXHVWHG
LQIRUPDWLRQ6HYHUDOUHVSRQGHQWVLQGLFDWHGWKDWLI)'$UHTXLUHVWKLVLQIRUPDWLRQ)'$ZLOOQHHGWR
FRQWDFWWKHFRPSDQ\WRUHTXHVWLW2QHFRPSDQ\RIILFLDOZLWKZKRPWKHFRQWUDFWRUVSRNHLQGLFDWHG
WKDWLWZRXOGEHH[WUHPHO\XQOLNHO\WKDWWKHUHTXHVWHGSROLF\LQIRUPDWLRQZRXOGEHSURYLGHGDVWKH
FRPSDQLHVNHHSLWFRQILGHQWLDORXWRIFRQFHUQDERXWSRVVLEOHODZHQIRUFHPHQWDFWLRQUHODWHGWRWKRVH
SROLFLHV
x $GGLWLRQDOO\WHOHSKRQHFDOOVZHUHSODFHGWRWKHWHQKHDOWKLQVXUHUVUHTXHVWLQJWRVSHDNZLWKVRPHRQH
LQWKHFKLHIPHGLFDORIILFHU¶VRIILFHZKRFRXOGSURYLGHWKHUHTXHVWHGLQIRUPDWLRQ,QQRFDVHZDVWKH
FRQWUDFWRUDEOHWRSURFHHGSDVWWKHLQLWLDOSRLQWRIWHOHSKRQHFRQWDFWZLWKLQWKHFRPSDQ\*LYHQWKH
FRPSOHWHODFNRIVXFFHVVLQSXUVXLQJWKLVURXWHRIFRQWDFWLWZDVDEDQGRQHG
,QOLJKWRIWKHFRQWUDFWRU¶VLQDELOLW\WRREWDLQWKHUHTXHVWHGLQIRUPDWLRQGLUHFWO\IURPWKHGHVLJQDWHG
FRPSDQLHVLWZDVGHFLGHGWRFRQGXFWH[WHQVLYHLQWHUQHWVHDUFKHVWRJOHDQZKDWHYHULQIRUPDWLRQZDVDYDLODEOH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
UHJDUGLQJWKHFRPSDQLHV¶SROLFLHVUHODWHGWRRSLRLGSUHVFULELQJ7KHLQIRUPDWLRQXQFRYHUHGLVVXPPDUL]HG
EHORZZLWKVSHFLILFFRQWHQWRIZHESDJHVLQFOXGHGLQWKHUHODWHG$SSHQGLFHV:KLOHWKLVPHWKRGLVXQOLNHO\
WRKDYHFDSWXUHGDOORIWKHFRQWHQWDQGQXDQFHRIWKHVHFRPSDQLHV¶SROLFLHVLWQRQHWKHOHVVUHYHDOHGVRPH
FRQVLVWHQWWKHPHVVXPPDUL]HGEHORZ
+HDOWK,QVXUDQFH&RPSDQLHV
7KHWHQODUJHVWKHDOWKLQVXUDQFHFRPSDQLHVLQWKH8QLWHG6WDWHVVXUYH\HGIRUWKLVUHSRUWLQFOXGHWKH
IROORZLQJ
x 8QLWHG+HDOWK
x $QWKHP
x $HWQD
x &LJQD
x +XPDQD
x &HQWHQH
x 0ROLQD
x :HOO&DUH
x +HDOWK1HW
x 0DJHOODQ
.H\ILQGLQJVIURPWKHVXUYH\RIKHDOWKLQVXUDQFHFRPSDQ\ZHEVLWHVDUHIRXQGLQ$SSHQGL[&&RQVLVWHQFLHV
DFURVVFRPSDQLHVLQFOXGHGWKHIROORZLQJ
x 2IWKHQLQHFRPSDQLHVIRUZKLFKPHDQLQJIXOLQIRUPDWLRQZDVDYDLODEOHWZRVSHFLILFDOO\PHQWLRQHG
WKDWWKHLUSROLFLHVDUHLQWHQGHGWREHFRQVLVWHQWZLWKWKH&'&JXLGHOLQH
x 7KUHHRIWKHQLQHFRPSDQLHVVHUYHSULPDULO\0HGLFDLGSURJUDPVWKXVKDYHWDNHQVWDWHVSHFLILF
DSSURDFKHVDOWKRXJKWKRVHJLYHQDVH[DPSOHVDUHJHQHUDOO\FRQVLVWHQWZLWKV\VWHPZLGHDFWLRQVWDNHQ
E\PRVWRWKHUKHDOWKLQVXUHUV
x 6HYHQRIWKHQLQHVSHFLILFDOO\KDGSROLFLHVHLWKHUJHQHUDOO\RUIRUVRPHVWDWHV¶0HGLFDLGSURJUDPV
OLPLWLQJGD\V¶VXSSO\RIVKRUWDFWLQJRSLRLGVIRUWUHDWPHQWRIDFXWHSDLQLQRSLRLGQDwYHSDWLHQWV
x (LJKWRIWKHQLQHKDGSULRUDXWKRUL]DWLRQSURJUDPVLQSODFHIRUVRPHDVSHFWVRIRSLRLGSUHVFULELQJ
o 7KUHHVSHFLILFDOO\OLVWHGSULRUDXWKRUL]DWLRQSURJUDPVIRULQLWLDWLRQRIH[WHQGHGUHOHDVHRSLRLGV
ZLWKWKHUHTXLUHPHQWWKDWSDWLHQWVXVHVKRUWDFWLQJRSLRLGVSULRUWRUHFHLYLQJDQH[WHQGHG
UHOHDVHRSLRLG
o 2QHHVWDEOLVKHGDSULRUDXWKRUL]DWLRQSURJUDPUHTXLULQJDSSURYDOIRURSLRLGGRVHVH[FHHGLQJ
00(SHUGD\
x 7KUHHPHQWLRQHGGHYHORSLQJHGXFDWLRQDOSURJUDPVUHJDUGLQJVDIHRSLRLGSUHVFULELQJIRUSURYLGHUV
x 2QHLQVXUHUUHSRUWHGKDYLQJDVSHFLDOSURJUDPIRUGHQWLVWVZLWKORZHUGRVHDQGGD\V¶VXSSO\OLPLWVIRU
GHQWDOSDWLHQWV\RXQJHUWKDQ\HDUVRIDJH
0RVWRIWKHVHWHQLQVXUHUVDSSHDUWREHHVWDEOLVKLQJSROLFLHVJHQHUDOO\FRQVLVWHQWZLWKWKHUHFRPPHQGDWLRQVLQ
WKH&'&JXLGHOLQH²DWOHDVWWKRVHUHFRPPHQGDWLRQVLQYROYLQJGD\V¶VXSSO\RIRSLRLGVXVHGWRWUHDWDFXWHSDLQ
DQGWKRVHLQYROYLQJGDLO\GRVHWKUHVKROGV2WKHU&'&JXLGHOLQHUHFRPPHQGDWLRQVVXFKDVSHULRGLFXULQH
GUXJWHVWLQJXVHRIQRQSKDUPDFRORJLFDOWUHDWPHQWVDQGFKHFNLQJ3'03UHSRUWVUHFHLYHGVFDQWDWWHQWLRQ
3KDUPDF\%HQHILW0DQDJHPHQW&RPSDQLHV
7KHILYHODUJHVW3%0VLQWKHFRXQWU\KDYHDOOHVWDEOLVKHGSROLFLHVLQWHQGHGWROLPLWGD\V¶VXSSO\DQGRUGDLO\
GRVHRIRSLRLGV7KHVHFRPSDQLHVVXUYH\HGIRUWKLVUHSRUWLQFOXGHWKHIROORZLQJ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
x &96+HDOWK&DUHPDUN
x ([SUHVV6FULSWV
x 2SWXP5;
x +XPDQD
x 0HG,PSDFW
.H\ILQGLQJVIURPWKHVXUYH\RI3%0ZHEVLWHVDUHIRXQGLQ$SSHQGL['7KHVHDUHDPRQJWKHFRQVLVWHQW
ILQGLQJVIRUWKHILYHODUJHVW3%0V
x 7ZRRIWKHILYHVSHFLILFDOO\PHQWLRQIROORZLQJWKH&'&JXLGHOLQHZLWKRQHRWKHUOLVWLQJSROLFLHVWKDW
PLUURUWKRVHIRXQGLQWKH&'&JXLGHOLQH
x 7KUHHOLPLWLQLWLDOSUHVFULSWLRQVIRURSLRLGQDwYHSDWLHQWVZLWKDFXWHSDLQWRDGD\VXSSO\WKHVDPH
WKUHHDOVRKDYHGDLO\GRVHOLPLWVWKDWFDQEHH[FHHGHGRQO\ZLWKDSULRUDXWKRUL]DWLRQDQGRQH
DGGLWLRQDO3%0KDVLQVWLWXWHGVRIWHGLWVEDVHGRQGDLO\GRVHDQGGXUDWLRQRIWKHUDS\
x 7KUHHRIWKHILYHIODJSDWLHQWVPHHWLQJFHUWDLQGRVHDQGGXUDWLRQFULWHULDDWWKHSKDUPDF\ZKHQWKH
SUHVFULSWLRQLVHQWHUHGIRUGLVSHQVLQJ
x 2QHDOVRIODJVSDWLHQWVZKRVHUHFRUGVLQGLFDWHWKH\KDYHREWDLQHGSUHVFULSWLRQVIURPPXOWLSOH
SUHVFULEHUVDQGRUSKDUPDFLHVLQWKHSUHYLRXVVL[PRQWKV
x 2QHVSHFLILFDOO\OLVWVGLIIHUHQWGD\V¶VXSSO\OLPLWVIRUSHGLDWULFSDWLHQWVZKLOHWKHRWKHUVDUHVLOHQWRQ
WKLVVXEMHFW
2YHUDOOWKHUHDSSHDUVWREHDKLJKGHJUHHRIFRQVLVWHQF\RISUDFWLFHDPRQJWKH3%0VZLWKYDULDWLRQVRQO\LQ
WKHVSHFLILFGRVHVDQGGD\V¶VXSSO\FULWHULDXVHGWRIODJDSDWLHQWRUWRWULJJHUDKDUGRUVRIWHGLWDWWKH
SKDUPDF\
+HDOWKFDUH6\VWHPV
(IIRUWVWRLGHQWLI\WKHWHQODUJHVWKHDOWKFDUHV\VWHPVXQFRYHUHGGLIIHULQJOLVWVEDVHGRQWKHFULWHULDXVHG,W
ZDVGHFLGHGWRLQFOXGHLQWKLVDQDO\VLVDOOV\VWHPVIRXQGLQWKHWRSWHQOLVWVEDVHGRQDQQXDOUHYHQXHDQG
QXPEHURIIDFLOLWLHV7KLVFRPELQHGOLVWLGHQWLILHGWKHIROORZLQJV\VWHPV
x +&$
x $VFHQVLRQ+HDOWK
x &DWKROLF+HDOWK,QLWLDWLYHV
x 7ULQLW\+HDOWK
x 3URYLGHQFH6W-RVHSK+HDOWK
x 7HQHW+HDOWKFDUH
x &RPPXQLW\+HDOWK6\VWHPV
x 8QLYHUVLW\RI&DOLIRUQLD+HDOWK
x 'LJQLW\+HDOWK
x 8QLYHUVDO+HDOWK6HUYLFHV
x .DLVHU3HUPDQHQWH
x 830&+HDOWK6\VWHP
x &DUROLQDV+HDOWKFDUH6\VWHP$WULXP+HDOWK
3ROLFLHVHVWDEOLVKHGE\WKHODUJHVWKHDOWKFDUHV\VWHPVDVIRXQGRQWKHLUZHEVLWHVDUHVXPPDUL]HGLQ
$SSHQGL[(&RPSDUHGWRKHDOWKLQVXUHUVDQG3%0VKHDOWKFDUHV\VWHPVDSSHDUWRYDU\PRUHLQWKHLU
UHVSRQVHVWRRSLRLGFRQFHUQV%HORZDUHWKHPHVWKDWDSSHDUHGPRUHWKDQRQFHDPRQJWKHVHOHFWHG
FRPSDQLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
x 6L[KDYHXQGHUWDNHQHGXFDWLRQDOHIIRUWVWRLQIRUPKHDOWKFDUHSURYLGHUVDERXWVDIHRSLRLGXVHDQG
DSSURSULDWHSDLQPDQDJHPHQW6RPHRIWKHVHDUHFRPSUHKHQVLYHHGXFDWLRQSURJUDPVZKLOHRWKHUV
FRQVLVWRIRUGHUVHWVDQGIODJVLQWKHHOHFWURQLFKHDOWKUHFRUG
x 7ZRPHQWLRQHGWKHXVHRI(QKDQFHG5HFRYHU\$IWHU6XUJHU\(5$6SURWRFROV
x 7KUHHUHSRUWHGHIIRUWVWRUHTXLUHDQGIDFLOLWDWH3'03FKHFNVZKHQSUHVFULELQJRSLRLGV
x 7ZRPHQWLRQHGHIIRUWVWRHGXFDWHSDWLHQWVZLWKUHVSHFWWRSDLQPDQDJHPHQWH[SHFWDWLRQVLQWKH
SRVWVXUJHU\SHULRG
x 2QO\WZRLPSRVHGDGD\VXSSO\OLPLWRQSUHVFULSWLRQVIRUDFXWHSDLQLQRSLRLGQDwYHSDWLHQWVIRU
RQHRIWKRVHLWZDVXQHQIRUFHDEOHRQDV\VWHPOHYHOVRZDVUHJDUGHGDVDUHFRPPHQGDWLRQ
x 7KUHHUHSRUWHGHIIRUWVWRVFUHHQSUHVFULELQJSDWWHUQVRQDV\VWHPOHYHOWRLGHQWLI\SUDFWLFHDUHDV
DQGRUSUHVFULEHUVZKRDUHPRVWSUROLILFLQWKHLUSUHVFULELQJ
x 7KUHHRIWKHKHDOWKFDUHV\VWHPVGLGQRWKDYHDQ\LQIRUPDWLRQRQWKHLUZHEVLWHVUHJDUGLQJRSLRLG
LQLWLDWLYHV
,QVXPDOWKRXJKPRVWRIWKHODUJHVWKHDOWKFDUHV\VWHPVKDYHRSLRLGVWHZDUGVKLSLQLWLDWLYHVXQGHUZD\WKHUHLV
OLWWOHFRQVLVWHQF\ZLWKUHJDUGWRWKHVSHFLILFSUDFWLFHVWKDWDUHFKRVHQWRFRPSULVHWKRVHLQLWLDWLYHV
&KDLQ3KDUPDFLHV
)ROORZLQJLVDOLVWRIWKHWHQODUJHVWFKDLQSKDUPDFLHVLQWKH8QLWHG6WDWHV7KLVOLVWIRUPHGWKHEDVLVIRU
VXUYH\VFRQGXFWHGDQGUHSRUWHGEHORZ
x &96
x :DOJUHHQV
x :DOPDUW
x 5LWH$LG
x .URJHU
x $OEHUWVRQV
x 3XEOL[
x $KROG'HOKDL]H
x +(%
x &RVWFR
,QIRUPDWLRQUHJDUGLQJRSLRLGSROLFLHVDGRSWHGE\WKHVHFKDLQSKDUPDFLHVLVIRXQGLQ$SSHQGL[)$VLVWUXHRI
3%0SROLFLHVWKHUHLVDIDLUGHJUHHRIFRQVLVWHQF\DFURVVWKHSROLFLHVDGRSWHGE\WKHVHSKDUPDFLHV
&RPPRQDOLWLHVLQFOXGH
x )LYHRIWKHWHQVWDWHRQWKHLUZHEVLWHVWKDWWKH\DUHLPSRVLQJDGD\OLPLWRQSUHVFULSWLRQVIRUDFXWH
SDLQLQRSLRLGQDwYHSDWLHQWV
x 7ZRUHSRUWWKDWWKH\DUHIROORZLQJWKH&'&JXLGHOLQHDOWKRXJKWKHSROLFLHVRIDQDGGLWLRQDOWKUHH
FOHDUO\UHIOHFWWKHUHFRPPHQGDWLRQVIRXQGLQWKDWJXLGHOLQH
x 7KUHHKDYHGHYHORSHGDOLVWRI³UHGIODJV´WKDWPXVWEHFOHDUHGEHIRUHDSKDUPDFLVWGLVSHQVHVDQRSLRLG
SUHVFULSWLRQWRDSDWLHQW
x 7ZRKDYHDGRVHOLPLWIRUSUHVFULSWLRQVDQGRQHDGGLWLRQDOFKDLQUHTXLUHVDSULRUDXWKRUL]DWLRQEHIRUH
SURFHHGLQJWRDGRVHDERYHDQXQVSHFLILHGWKUHVKROG
x 7ZRKDYHDVWHSWKHUDS\SURWRFROLQSODFHUHTXLULQJXVHRIDVKRUWDFWLQJRSLRLGEHIRUHDSDWLHQWFDQ
UHFHLYHDQH[WHQGHGUHOHDVHRSLRLG
7DNHQWRJHWKHUZLWKWKH3%0SROLFLHVRXWOLQHGDERYHLWLVDSSDUHQWWKDWDODUJHSRUWLRQRIWKHSKDUPDF\
ODQGVFDSHLVFKDUDFWHUL]HGE\WKHSUHVHQFHRISROLFLHVPLPLFNLQJWKH&'&JXLGHOLQHUHFRPPHQGDWLRQVZLWKD
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
GD\V¶VXSSO\OLPLWIRURSLRLGQDwYHSDWLHQWVZLWKDFXWHSDLQDQGVLJQLILFDQWHIIRUWVWRUHVWULFWWRWDOGDLO\GRVHLI
QRWDQRXWULJKWFDSRQWKDWGRVH
6800$5<$1'5(&200(1'$7,216
7KHUHYLHZVRXWOLQHGDERYHDQGGHWDLOVFRQWDLQHGLQWKHUHODWHGDSSHQGLFHVLQGLFDWHWKDWWKHUHDUHPDQ\
HIIRUWVE\QRQJRYHUQPHQWDOHQWLWLHVXQGHUZD\WKDWOLPLWRSLRLGSUHVFULELQJLQVHYHUDOZD\V:KLOHVWDWH
JRYHUQPHQWVLQVWDWHVDVRI2FWREHUDFFRUGLQJWRWKH1DWLRQDO&RXQFLORI6WDWH/HJLVODWXUHVKDYH
DSSURYHGOHJLVODWLRQRUUHJXODWLRQVOLPLWLQJRSLRLGGRVLQJSROLFLHVSXWLQWRSODFHE\LQVXUHUV3%0VFKDLQ
SKDUPDFLHVDQGKHDOWKFDUHV\VWHPVDOOFDQVXEVWDQWLDOO\DIIHFWSUHVFULELQJLQWKHUHPDLQLQJVWDWHVDQGWKH
'LVWULFWRI&ROXPELD$Q\HYDOXDWLRQRIWKHLPSDFWRIWKHRSLRLG5(06SURJUDPRQRSLRLGSUHVFULELQJPXVW
WKHUHIRUHLQFOXGHWLPHO\DQGDFFXUDWHLQIRUPDWLRQDERXWSROLFLHVHVWDEOLVKHGE\WKHVHQRQJRYHUQPHQWDO
DJHQFLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$SSHQGL[$*RYHUQPHQW2SLRLG3UHVFULELQJ3ROLFLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
*RYHUQPHQW2SLRLG3UHVFULELQJ3ROLFLHV
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
(VWDEOLVKHGDQDFFRXQWZLWKLQWKH7UHDVXU\NQRZQDVWKH³$FFRXQWIRUWKH6WDWH
5HVSRQVHWRWKH2SLRLG$EXVH&ULVLV´'LUHFWHGWKHWUDQVIHURIIXQGVIURPWKHJHQHUDO
8QLWHG DFFRXQWLQWRWKLVQHZDFFRXQWLQWKHDPRXQWVRI0\HDULQDQG&UHDWHV
3XEOLF/DZ VW&HQWXU\&XUHV
+5 WKH2SLRLG*UDQW3URJUDPIRU6WDWHVDGGUHVVLQJVXEVWDQFHDEXVHSUHYHQWLRQDQG
6WDWHV $FW
WUHDWPHQWLQFOXGLQJLPSURYLQJSUHVFULSWLRQPRQLWRULQJSURJUDPVLPSOHPHQWLQJ
SUHYHQWLRQDFWLYLWLHVWUDLQLQJKHDOWKFDUHSUDFWLWLRQHUVLQEHVWSUDFWLFHVIRUSUHVFULELQJ
RSLRLGVDQGWUHDWLQJSDLQVXSSRUWLQJDFFHVVWRKHDOWKFDUHVHUYLFHVDQGRWKHUDFWLYLWLHV
5HYLVHGDQGH[SDQGHGWKHUHTXLUHGHOHPHQWVRIDQRUGHUWRVKRZFDXVHLVVXHGE\WKH
'($EHIRUHLWGHQLHVUHYRNHVRUVXVSHQGVDUHJLVWUDWLRQIRUD&RQWUROOHG6XEVWDQFHV$FW
YLRODWLRQ$QRUGHUWRVKRZFDXVHPXVWVSHFLILFDOO\VWDWHWKHOHJDOEDVLVIRUWKHDFWLRQDQG
QRWLI\WKHUHJLVWUDQWRIWKHRSSRUWXQLW\WRVXEPLWDFRUUHFWLYHDFWLRQSODQ)XUWKHU
(QVXULQJ3DWLHQW
UHTXLUHV)'$6$0+6$$+54DQG&'&LQFRRUGLQDWLRQZLWK'($WRUHSRUWWR
8QLWHG $FFHVVDQG
3XEOLF/DZ &RQJUHVVRQREVWDFOHVWROHJLWLPDWHSDWLHQWDFFHVVWRFRQWUROOHGVXEVWDQFHVGLYHUVLRQRI
6 (IIHFWLYH'UXJ
6WDWHV FRQWUROOHGVXEVWDQFHVKRZDJHQF\DQGSKDUPDFHXWLFDOPDQXIDFWXUHUFROODERUDWLRQFDQ
(QIRUFHPHQW$FWRI
DGGUHVVWKHVHLVVXHVHQKDQFHPHQWVWR3'03VWKHDYDLODELOLW\RIDQGJDSVLQPHGLFDO
HGXFDWLRQWUDLQLQJRSSRUWXQLWLHVDQGFRPSUHKHQVLYHFOLQLFDOJXLGDQFHIRUSDLQ
PDQDJHPHQWDQGRSLRLGSUHVFULELQJDQGLPSURYHPHQWVWRSUHVFULSWLRQRSLRLGUHSRUWLQJ
UHTXLUHPHQWVWRWKDWWKH3XEOLFDQG&RQJUHVVKDYHPRUHLQIRUPDWLRQUHRSLRLGV
SUHVFULEHGDQQXDOO\GLVSHQVLQJRXWOLHUVDQGWUHQGV
([SDQGVSUHYHQWLRQDQGHGXFDWLRQDOHIIRUWV²SDUWLFXODUO\DLPHGDWWHHQVSDUHQWVDQG
RWKHUFDUHWDNHUVDQGDJLQJSRSXODWLRQV²WRSUHYHQWWKHDEXVHRIPHWKDPSKHWDPLQHV
RSLRLGVDQGKHURLQDQGWRSURPRWHWUHDWPHQWDQGUHFRYHU\([SDQGGLVSRVDOVLWHVIRU
&RPSUHKHQVLYH XQZDQWHGSUHVFULSWLRQPHGLFDWLRQVWRNHHSWKHPRXWRIWKHKDQGVRIRXUFKLOGUHQDQG
8QLWHG 3XEOLF/DZ $GGLFWLRQDQG DGROHVFHQWV
6
6WDWHV 5HFRYHU\$FWRI /DXQFKDQHYLGHQFHEDVHGRSLRLGDQGKHURLQWUHDWPHQWDQGLQWHUYHQWLRQSURJUDPWR
H[SDQGEHVWSUDFWLFHVWKURXJKRXWWKHFRXQWU\6WUHQJWKHQSUHVFULSWLRQGUXJPRQLWRULQJ
SURJUDPVWRKHOSVWDWHVPRQLWRUDQGWUDFNSUHVFULSWLRQGUXJGLYHUVLRQDQGWRKHOSDWULVN
LQGLYLGXDOVDFFHVVVHUYLFHV$OORZVIRUWKHSDUWLDOILOOLQJRI6FKHGXOH,,FRQWUROOHG
VXEVWDQFHVZRXOGUHTXLUH'($WRXSGDWHUHJXODWLRQV
3URYLGHVUHFRPPHQGDWLRQVIRUSULPDU\FDUHFOLQLFLDQVZKRDUHSUHVFULELQJRSLRLGVIRU
&HQWHUVIRU &'&*XLGHOLQHIRU FKURQLFSDLQRXWVLGHRIDFWLYHFDQFHUWUHDWPHQWSDOOLDWLYHFDUHDQGHQGRIOLIHFDUH7KH
8QLWHG 'LVHDVH 3UHVFULELQJ2SLRLGV JXLGHOLQHDGGUHVVHVZKHQWRLQLWLDWHRUFRQWLQXHRSLRLGVIRUFKURQLFSDLQRSLRLG
QD VHOHFWLRQGRVDJHGXUDWLRQIROORZXSDQGGLVFRQWLQXDWLRQDQGDVVHVVLQJULVNDQG
6WDWHV &RQWURODQG IRU&KURQLF3DLQ²
3UHYHQWLRQ 8QLWHG6WDWHV DGGUHVVLQJKDUPVRIRSLRLGXVH7KHJXLGHOLQHLVLQWHQGHGWRLPSURYHFRPPXQLFDWLRQ
EHWZHHQFOLQLFLDQVDQGSDWLHQWVDERXWWKHULVNVDQGEHQHILWVRIRSLRLGWKHUDS\IRUFKURQLF
SDLQLPSURYHWKHVDIHW\DQGHIIHFWLYHQHVVRISDLQWUHDWPHQWDQGUHGXFHWKHULVNV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
DVVRFLDWHGZLWKORQJWHUPRSLRLGWKHUDS\LQFOXGLQJRSLRLGXVHGLVRUGHURYHUGRVHDQG
GHDWK&'&KDVSURYLGHGDFKHFNOLVWIRUSUHVFULELQJRSLRLGVIRUFKURQLFSDLQ
KWWSVWDFNVFGFJRYYLHZFGFDVZHOODVDZHEVLWH
KWWSZZZFGFJRYGUXJRYHUGRVHSUHVFULELQJUHVRXUFHVKWPOZLWKDGGLWLRQDOWRROVWR
JXLGHFOLQLFLDQVLQLPSOHPHQWLQJWKHUHFRPPHQGDWLRQV
&06HIIRUWLQFOXGHVIRXUSULRULW\DUHDV,PSOHPHQWPRUHHIIHFWLYHSHUVRQFHQWHUHG
DQGSRSXODWLRQEDVHGVWUDWHJLHVWRUHGXFHWKHULVNRIRSLRLGXVHGLVRUGHUVRYHUGRVHV
&HQWHUVIRU
8QLWHG LQDSSURSULDWHSUHVFULELQJDQGGUXJGLYHUVLRQ([SDQGQDOR[RQHXVHGLVWULEXWLRQDQG
0HGLFDUHDQG 2SLRLG0LVXVH
QD DFFHVVZKHQFOLQLFDOO\DSSURSULDWH([SDQGVFUHHQLQJGLDJQRVLVDQGWUHDWPHQWRI
6WDWHV 0HGLFDLG 6WUDWHJ\
RSLRLGXVHGLVRUGHUVZLWKHPSKDVLVRQLQFUHDVLQJDFFHVVWRPHGLFDWLRQDVVLVWHG
6HUYLFHV
WUHDWPHQWDQG,QFUHDVHXVHRIHYLGHQFHEDVHGSUDFWLFHVIRUDFXWHDQGFKURQLFSDLQ
PDQDJHPHQW
&0&6
,QIRUPDWLRQDO
7KHSXUSRVHRIWKLV%XOOHWLQLVWRKLJKOLJKWHPHUJLQJ0HGLFDLGVWUDWHJLHVIRUSUHYHQWLQJ
&HQWHUVIRU %XOOHWLQ%HVW
8QLWHG RSLRLGUHODWHGKDUPV6WUDWHJLHVLQFOXGHGUHODWHWRSURYLGHUHGXFDWLRQSUHIHUUHGGUXJ
0HGLFDUHDQG 3UDFWLFHVIRU
QD OLVWFOLQLFDOFULWHULDVWHSWKHUDS\SULRUDXWKRUL]DWLRQTXDQWLW\OLPLWVGUXJXWLOL]DWLRQ
6WDWHV 0HGLFDLG $GGUHVVLQJ
UHYLHZXVHRI3'03VSDWLHQWUHYLHZDQGUHVWULFWLRQSURJUDPVXVHRIQDOR[RQHDQG
6HUYLFHV 3UHVFULSWLRQ2SLRLG
FRYHUDJHIRU68'WUHDWPHQW
2YHUGRVHV0LVXVH
DQG$GGLFWLRQ
3DLQ0DQDJHPHQW
8QLWHG 'HSDUWPHQWRI 2SLRLG7DSHU 7KH2SLRLG7DSHU'HFLVLRQ7RROLVGHVLJQHGWRDVVLVW3ULPDU\&DUHSURYLGHUVLQ
9HWHUDQV QD 'HFLVLRQ7RRO$ GHWHUPLQLQJLIDQRSLRLGWDSHULVQHFHVVDU\IRUDVSHFLILFSDWLHQWLQSHUIRUPLQJWKHWDSHU
6WDWHV $IIDLUV 9$&OLQLFLDQ
V DQGLQSURYLGLQJIROORZXSDQGVXSSRUWGXULQJWKHWDSHU
*XLGH
[
$ODEDPD
7UDLQLQJ
%RDUGRI 5HYLVHVWUDLQLQJHGXFDWLRQTXDOLILFDWLRQUHTXLUHPHQWVUHODWHGWRPHGLFDOGLUHFWRUVRISDLQ
$ODEDPD QD 5HTXLUHPHQWV
0HGLFDO PDQDJHPHQWFOLQLFV
0HGLFDO'LUHFWRU
([DPLQHUV
2WKHU5HTXLUHPHQWV
&RQWDLQVDGLUHFWLYHWRWKHOLFHQVLQJERDUGV0HGLFDO'HQWDO1XUVLQJ2SWRPHWU\
0HGLFDLG5HIRUP
&+$37(5 3KDUPDF\WRMRLQWO\SUHSDUHDUHSRUWWKDWGHVFULEHVUHFRPPHQGHGJXLGHOLQHVIRUWKH
$ODVND 6% 7HOHPHGLFLQH'UXJ
6/$ SUHVFULSWLRQRI6FKHGXOH,,FRQWUROOHGVXEVWDQFHV5HTXLUHVOLFHQVHGSUHVFULEHUVZLWK
'DWDEDVH
'($QXPEHUVWRUHJLVWHUZLWKWKH3'03
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
'LYLVLRQRI
&RUSRUDWLRQV 5HFRPPHQGLQJ
%XVLQHVVDQG $GRSWLRQRI
3URIHVVLRQDO :DVKLQJWRQ
V 5HFRPPHQGVDGRSWLRQRIWKH6WDWHRI:DVKLQJWRQ
V,QWHUDJHQF\*XLGHOLQHVRQ
,PSOHPHQWLQJ
$ODVND /LFHQVLQJ ,QWHUDJHQF\ 3UHVFULELQJ2SLRLGVIRU3DLQEXWZLWKRQHPDMRUFKDQJHUHGXFLQJ:$
V00(GD\
6%
-RLQW *XLGHOLQHVRQ GRVDJHWKUHVKROGWRD00(GD\GRVDJHWKUHVKROG
&RPPLWWHHRQ 3UHVFULELQJ2SLRLGV
3UHVFULSWLYH IRU3DLQ
*XLGHOLQHV
3ROLFLHVDQG
3URFHGXUHV
$ODVND6WDWH 8SGDWHGDSUHYLRXVO\H[LVWLQJJXLGHOLQHWRLQFOXGHWKH&'&JXLGHOLQHDVDQDYDLODEOHWRRO
$ODVND QD 3UHVFULELQJ
0HGLFDO%RDUG IRUULVNPLWLJDWLRQ
&RQWUROOHG
6XEVWDQFHV
&RQWUROOHG 5HTXLUHV3'03FKHFNDWOHDVWRQFHSHUTXDUWHUSULRUWRLVVXLQJDQRSLRLGDQDOJHVLFRU
6XEVWDQFHV EHQ]RGLD]HSLQHOLVWHGLQ6FKHGXOH,,,,,RU,9&UHDWHVH[FHSWLRQV3URPRWHV
$UL]RQD &KDSWHU 6%
3UHVFULSWLRQ 3'03(+5LQWHJUDWLRQ5HTXLUHVUHSRUWIURP$=%RDUGRI3KDUPDF\UHWKHXVDELOLW\
0RQLWRULQJ3URJUDP HIILFLHQF\DQGFOLQLFDOXVHRIWKH3'03
'LUHFWVWKH'LUHFWRURIWKH$UL]RQD'HSDUWPHQWRI+HDOWK6HUYLFHVWRLQLWLDWHHPHUJHQF\
*RYHUQRU UXOHPDNLQJZLWKWKH$UL]RQD$WWRUQH\*HQHUDO
V2IILFHLQRUGHUWRGHYHORSUXOHVIRU
2SLRLG2YHUGRVH
$UL]RQD 'HFODUDWLRQRI QD RSLRLGSUHVFULELQJDQGWUHDWPHQWZLWKLQKHDOWKFDUHLQVWLWXWLRQVWRGHYHORSJXLGHOLQHVWR
(SLGHPLF
(PHUJHQF\ HGXFDWHKHDOWKFDUHSURYLGHUVRQUHVSRQVLEOHSUHVFULELQJSUDFWLFHVDQGRWKHUUHODWHG
LWHPV
,QFOXGHVZLWKLQWKHGHILQLWLRQRI³0DOSUDFWLFH´7KHSUHVFULELQJRIH[FHVVLYHDPRXQWVRI
FRQWUROOHGVXEVWDQFHVWRDSDWLHQWLQFOXGLQJWKHZULWLQJRIDQH[FHVVLYHQXPEHURI
SUHVFULSWLRQVIRUDQDGGLFWLQJRUSRWHQWLDOO\KDUPIXOGUXJWRDSDWLHQW³([FHVVLYH´LV
GHILQHGDVWKHZULWLQJRIDQ\SUHVFULSWLRQLQDQ\DPRXQWZLWKRXWDGHWDLOHGPHGLFDO
$UNDQVDV
$UNDQVDV QD 5HJXODWLRQ1R MXVWLILFDWLRQIRUWKHSUHVFULSWLRQGRFXPHQWHGLQWKHSDWLHQWUHFRUG)RUFKURQLFSDLQHYHQ
0HGLFDO%RDUG
ZLWKDGRFXPHQWHGMXVWLILFDWLRQ³H[FHVVLYH´PHDQVDQ\WKLQJDERYH00(GD\RI
RSLRLGVXQOHVVFHUWDLQUHTXLUHPHQWVDUHPHWUHODWHGWRGLDJQRVLVGRFXPHQWDWLRQ3'03
FKHFNVREMHFWLYHILQGLQJVDQGPRUH)RUDFXWHSDLQ³H[FHVVLYH´PHDQVDQ\SUHVFULSWLRQ
ZULWWHQIRUPRUHWKDQGD\V
5HJXODWLRQ1R (VWDEOLVKHVUHTXLUHPHQWVIRUSK\VLFLDQVRSHUDWLQJSDLQPDQDJHPHQWSURJUDPV6HWVUXOHV
$UNDQVDV
$UNDQVDV QD 3DLQ0DQDJHPHQW UHODWHGWRZULWWHQWUHDWPHQWSODQVFRRUGLQDWHGFDUHHGXFDWLRQDQGTXDOLILFDWLRQVIRU
0HGLFDO%RDUG
3URJUDPV SK\VLFLDQVPDQDJLQJ&KURQLF3DLQ0DQDJHPHQW3URJUDPV3'03FKHFNVHWF
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
$UNDQVDV0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHVIRU3UHVFULELQJ2SLRLGVIRU&KURQLF
$UNDQVDV 3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP)XUWKHUXSGDWHVZHUHPDGHUHODWHGWRRSLRLG
$UNDQVDV QD QD
0HGLFDLG TXDQWLW\OLPLWVDQGRSLRLGFOLQLFDOFULWHULD$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH
+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
5HTXLUHDKHDOWKFDUHSUDFWLWLRQHUDXWKRUL]HGWRSUHVFULEHRUGHUDGPLQLVWHURUIXUQLVKD
FRQWUROOHGVXEVWDQFHWRFRQVXOWWKH&85(6GDWDEDVHWRUHYLHZDSDWLHQW¶VFRQWUROOHG
&RQWUROOHG
VXEVWDQFHKLVWRU\QRHDUOLHUWKDQKRXUVRUWKHSUHYLRXVEXVLQHVVGD\EHIRUH
&DOLIRUQLD &KDSWHU 6% 6XEVWDQFHV&85(6
SUHVFULELQJD6FKHGXOH,,6FKHGXOH,,,RU6FKHGXOH,9FRQWUROOHGVXEVWDQFHWRWKH
'DWDEDVH
SDWLHQWIRUWKHILUVWWLPHDQGDWOHDVWRQFHHYHU\PRQWKVWKHUHDIWHULIWKHVXEVWDQFH
UHPDLQVSDUWRIWKHWUHDWPHQWRIWKHSDWLHQW&RQWDLQVH[HPSWLRQV
(DFKSUHVFULSWLRQIRUDFRQWUROOHGVXEVWDQFHLVVXHGE\DSK\VLFLDQDVVLVWDQWVKDOOEH
&RORUDGR LPSULQWHGZLWKWKHQDPHRIWKHSK\VLFLDQDVVLVWDQW
VVXSHUYLVLQJSK\VLFLDQ)RUDOORWKHU
3K\VLFLDQ'XWLHV
5HYLVHG SUHVFULSWLRQVLVVXHGE\DSK\VLFLDQDVVLVWDQWWKHQDPHDQGDGGUHVVRIWKHKHDOWKIDFLOLW\
&RORUDGR 6% 'HOHJDWHG7R
6WDWXWHV DQGLIWKHKHDOWKIDFLOLW\LVDPXOWLVSHFLDOW\RUJDQL]DWLRQWKHQDPHDQGDGGUHVVRIWKH
3K\VLFLDQ$VVLVWDQW
VSHFLDOW\FOLQLFZLWKLQWKHKHDOWKIDFLOLW\ZKHUHWKHSK\VLFLDQDVVLVWDQWLVSUDFWLFLQJPXVW
EHLPSULQWHGRQWKHSUHVFULSWLRQ
&RORUDGR0HGLFDLGPDGHXSGDWHVWRWKHLUIHHIRUVHUYLFHSURJUDPUHODWHGWRSULRU
+HDOWK)LUVW
DXWKRUL]DWLRQIRURSLRLGVRSLRLGVWHSWKHUDS\UHTXLUHPHQWVDQGRSLRLGFOLQLFDOFULWHULD
&RORUDGR &RORUDGR QD QD
IRU)<$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\
0HGLFDLG
)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
$PHQGVWKHGHILQLWLRQRI³3UDFWLFHRIDOFRKRODQGGUXJFRXQVHOLQJ´WRLQFOXGH68'
VFUHHQLQJULVNVWUDWLILFDWLRQWUHDWPHQWDQGUHIHUUDORSWLRQVIRUSDWLHQWVWDNLQJGUXJVIRU
$Q$FW&RQFHUQLQJ SDLQ/LPLWVRSLRLGSUHVFULSWLRQVWRVHYHQGD\VIRUQHZSDWLHQWLQWKHRXWSDWLHQWVHWWLQJ
3XEOLF$FW1R 2SLRLGVDQG$FFHVV /LPLWVRSLRLGSUHVFULSWLRQVIRUPLQRUVWRVHYHQGD\VXSSOLHV&UHDWHVH[FHSWLRQVEDVHG
&RQQHFWLFXW +%
WR2YHUGRVH RQSURIHVVLRQDOPHGLFDOMXGJPHQW&KDQJHV3'03UHSRUWLQJUHTXLUHPHQWVIURP³
5HYHUVDO'UXJV KRXUV´WR³QH[WEXVLQHVVGD\´5HTXLUHV3'03FKHFNVDWOHDVWDQQXDOO\IRU6FKHGXOH9
PHGLFDWLRQV$OORZVIRUGHOHJDWHVWRFKHFNWKH3'03RQEHKDOIRIWKHSUHVFULELQJ
SUDFWLWLRQHU
&UHDWHVDFRPPLWWHHWRFRQVLGHUWKHHGXFDWLRQDQGH[DPLQDWLRQUHTXLUHPHQWVDQG
$Q$FW&RQFHUQLQJ RWKHUTXDOLILFDWLRQVQHFHVVDU\WRDOORZSHUVRQVOLFHQVHGWRSUDFWLFHQDWXURSDWK\WR
6SHFLDO$FW D&RPPLWWHHRQWKH SUHVFULEHGLVSHQVHDQGDGPLQLVWHUSUHVFULSWLRQGUXJVFRQVLVWHQWZLWKWKHLUVFRSHRI
&RQQHFWLFXW +%
1R 3UDFWLFHRI SUDFWLFHDQGWKHGHYHORSPHQWRIDQDWXURSDWKLFIRUPXODU\RISUHVFULSWLRQGUXJVIRU
1DWXURSDWK\ SHUVRQVOLFHQVHGWRSUDFWLFHQDWXURSDWK\ZKRPHHWVSHFLILHGHGXFDWLRQDODQGH[DPLQDWLRQ
UHTXLUHPHQWVRURWKHUTXDOLILFDWLRQVWRSUHVFULEHGLVSHQVHRUDGPLQLVWHU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
$Q$FWWR$PHQG
7LWOHRIWKH
'HODZDUH&RGH
$SHUVRQLVJXLOW\RIGUXJGHDOLQJUHVXOWLQJLQGHDWKZKHQWKHSHUVRQGHOLYHUVD6FKHGXOH
5HODWLQJWRWKH
'HODZDUH ,RU,,FRQWUROOHGVXEVWDQFHLQ7LHURUJUHDWHUTXDQWLW\WRDQRWKHUSHUVRQLQYLRODWLRQRI
'LVWULEXWLRQRU
'HODZDUH &RGH7LWOH +% WKLVFKDSWHUDQGVDLGFRQWUROOHGVXEVWDQFHWKHUHDIWHUFDXVHVWKHGHDWKRIDQRWKHUSHUVRQ
'HOLYHU\RID
&KDSWHU ZKRXVHVRUFRQVXPHVLW,WLVQRWDGHIHQVHWRDSURVHFXWLRQXQGHUWKLVVHFWLRQWKDWWKH
&RQWUROOHG
GHIHQGDQWGLGQRWGLUHFWO\GHOLYHUWKHFRQWUROOHGVXEVWDQFHWRWKHGHFHGHQW
6XEVWDQFH&DXVLQJ
'HDWK%URFN
&HUNOHIVNLH
V/DZ
$Q$FW7R$PHQG
7LWOH2I7KH
'HODZDUH 6HQDWH%LOOSDVVHGGXULQJ
VWK*HQHUDO$VVHPEO\LQDGYHUWHQWO\RPLWWHGWKH
'HODZDUH&RGH
'HODZDUH &RGH7LWOH 6% H[FHSWLRQIRUYHWHULQDULDQVDQGPHWKDGRQHFOLQLFVLQDGGLWLRQWRSKDUPDFLHVIURP
5HODWLQJ7R
&KDSWHU GLVSHQVLQJPRUHWKDQKRXUVRIDFRQWUROOHGVXEVWDQFH7KLVELOOFRUUHFWHGWKDWHUURU
8QLIRUP&RQWUROOHG
6XEVWDQFHV
$Q$FW7R$PHQG
7LWOH2I7KH $OORZVRSWRPHWULVWVWRSUHVFULEHFRQWUROOHGVXEVWDQFHVEXWZLWKDOLPLWDWLRQRIDKRXU
'HODZDUH 'HODZDUH&RGH VXSSO\IRU6FKHGXOH,,FRQWUROOHGVXEVWDQFHVFRQWDLQLQJK\GURFRGRQHDQGIRUDOO
'HODZDUH &RGH7LWOH 6% 5HODWLQJ7R 6FKHGXOH,,,,9DQG9FRQWUROOHGVXEVWDQFHV5HTXLUHVRSWRPHWULVWVWRUHJLVWHUZLWKWKH
&KDSWHU 3URIHVVLRQ$QG 'UXJ(QIRUFHPHQW$JHQF\5HTXLUHVRSWRPHWULVWVWRSURYLGHSURRIRIJUDGXDWHOHYHO
2FFXSDWLRQ2I FRXUVHZRUNWKDWLQFOXGHVJHQHUDODQGRFXODUSKDUPDFRORJ\
2SWRPHWU\
$Q$FW7R$PHQG (VWDEOLVKHGD&RPPLVVLRQWRLQYHVWLJDWHDQGUHYLHZWKHIDFWVDQGFLUFXPVWDQFHVRIDOO
'HODZDUH 7LWOHV$QG2I RYHUGRVHGHDWKVLQYROYLQJRSLDWHVIHQWDQ\ORUKHURLQZKLFKRFFXULQ'HODZDUH7KH
&RGH7LWOH 7KH'HODZDUH&RGH &RPPLVVLRQVKDOOPDNHUHFRPPHQGDWLRQVWRWKH*RYHUQRUDQG*HQHUDO$VVHPEO\DW
'HODZDUH 6%
6XEFKDSWHU :LWK5HVSHFW7R OHDVWDQQXDOO\UHJDUGLQJWKRVHSUDFWLFHVRUFRQGLWLRQVZKLFKLPSDFWWKHIUHTXHQF\RI
9,,, 'UXJ2YHUGRVH RYHUGRVHGHDWKVLQYROYLQJRSLDWHVIHQWDQ\ORUKHURLQDQGVWHSVWKDWFDQEHWDNHQWR
)DWDOLWLHV UHGXFHWKHIUHTXHQF\RIVXFKRYHUGRVHGHDWKV
'(+HDOWKDQG
6RFLDO
'HODZDUH0HGLFDLGPDGHXSGDWHVWRWKHLU)HHIRU6HUYLFHSURJUDPLQUHODWHGWR
6HUYLFHV
'HODZDUH'( QD QD RSLRLGFOLQLFDOFULWHULD$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU
0HGLFDLGDQG
)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
0HGLFDO
$VVLVWDQFH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
'LVWULFWRI (VWDEOLVKHVWKH'LVWULFWRI&ROXPELD3UHVFULSWLRQ'UXJ0RQLWRULQJ3URJUDP2XWOLQHV
&KDSWHU
'LVWULFWRI &ROXPELD UHSRUWLQJUHTXLUHPHQWVFRYHUHGVXEVWDQFHVVWDQGDUGVDQGIRUPDWVIRUUHSRUWLQJ
QD 3UHVFULSWLRQ'UXJ
&ROXPELD 0XQLFLSDO SUHVFULEHUDQGGLVSHQVHUDFFHVVWR3'03GDWDGLVFORVXUHRIGDWDWRODZHQIRUFHPHQWDQG
0RQLWRULQJ3URJUDP
5HJXODWLRQV UHJXODWRU\DJHQFLHVLQWHUVWDWHGDWDVKDULQJWKH3'03$GYLVRU\&RPPLWWHHHWF
$OORZVDGYDQFHGSUDFWLFHQXUVHSUDFWLWLRQHUVWRSUHVFULEHGLVSHQVHDGPLQLVWHURURUGHU
FRQWUROOHGVXEVWDQFHVXQGHUFHUWDLQFLUFXPVWDQFHV(VWDEOLVKHVDFRPPLWWHHWR
UHFRPPHQGDIRUPXODU\RIFRQWUROOHGVXEVWDQFHVWKDWDQDGYDQFHGUHJLVWHUHGQXUVH
SUDFWLWLRQHUPD\QRWSUHVFULEHRUPD\SUHVFULEHRQO\IRUVSHFLILFXVHVRULQOLPLWHG
&KDSWHU1R $FFHVVWR+HDOWK
)ORULGD +% TXDQWLWLHV0DQGDWHVFRQWLQXLQJHGXFDWLRQRQVDIHDQGHIIHFWLYHSUHVFULSWLRQRI
&DUH6HUYLFHV
FRQWUROOHGVXEVWDQFHV$GGVSK\VLFLDQVZKRDUHERDUGHOLJLEOHRUERDUGFHUWLILHGZLWKWKH
$PHULFDQ%RDUGRI,QWHUYHQWLRQDO3DLQ3K\VLFLDQVDQGWKH$PHULFDQ$VVRFLDWLRQRI
3K\VLFLDQ6SHFLDOWLHVWRWKHOLVWRIWKRVHZKRDUHH[HPSWHGIURPUHIHUULQJWKHLUSDWLHQWV
ZLWKVLJQVRIVXEVWDQFHXVHGLVRUGHUWRDVSHFLDOLVW
0DNHVWHFKQLFDOFKDQJHVWRH[LVWLQJODZVUHODWHGWRSDLQWRLPSURYHFODULW\$GGV
SK\VLFLDQVZKRDUHERDUGHOLJLEOHRUERDUGFHUWLILHGZLWKWKH$PHULFDQ%RDUGRI
&KDSWHU1R %HKDYLRUDO+HDOWK
)ORULGD +% ,QWHUYHQWLRQDO3DLQ3K\VLFLDQVDQGWKH$PHULFDQ$VVRFLDWLRQRI3K\VLFLDQ6SHFLDOWLHVWR
:RUNIRUFH
WKHOLVWRIWKRVHZKRDUHH[HPSWHGIURPUHIHUULQJWKHLUSDWLHQWVZLWKVLJQVRIVXEVWDQFH
XVHGLVRUGHUWRDVSHFLDOLVW
0DNHVWHFKQLFDOFKDQJHVWRH[LVWLQJODZVUHODWHGWRSUHVFULSWLRQUHTXLUHPHQWV$OORZV
&KDSWHU1R 2UGHULQJRI SUDFWLWLRQHUVZKRVXSHUYLVHOLFHQVHGSK\VLFLDQDVVLVWDQWVRUDGYDQFHGUHJLVWHUHGQXUVH
)ORULGD +%
0HGLFDWLRQ SUDFWLWLRQHUVWRDXWKRUL]HWKRVHSUDFWLWLRQHUVWRRUGHUFRQWUROOHGVXEVWDQFHVXQGHUFHUWDLQ
FLUFXPVWDQFHV
3URYLGHVWKDWDKHDOWKLQVXUDQFHSROLF\WKDWFRYHUVDEXVHGHWHUUHQWRSLRLGDQDOJHVLFGUXJ
SURGXFWVPD\LPSRVHDSULRUDXWKRUL]DWLRQUHTXLUHPHQWIRUDQDEXVHGHWHUUHQWRSLRLG
+HDOWK,QVXUDQFH DQDOJHVLFGUXJSURGXFWRQO\LIWKHLQVXUHULPSRVHVWKHVDPHUHTXLUHPHQWIRUHDFKRSLRLG
&KDSWHU1R
)ORULGD 6% &RYHUDJHIRU DQDOJHVLFGUXJSURGXFWZLWKRXWDQDEXVHGHWHUUHQFHODEHOLQJFODLP3URKLELWVVXFKKHDOWK
2SLRLGV LQVXUDQFHSROLF\IURPUHTXLULQJXVHRIDQRSLRLGDQDOJHVLFGUXJSURGXFWZLWKRXWDQ
DEXVHGHWHUUHQFHODEHOLQJFODLPEHIRUHDXWKRUL]LQJWKHXVHRIDQDEXVHGHWHUUHQWRSLRLG
DQDOJHVLFGUXJSURGXFW
([HPSWVUHKDELOLWDWLYHKRVSLWDOVDVVLVWHGOLYLQJIDFLOLWLHVDQGQXUVLQJKRPHVIURPWKH
&KDSWHU1R 3UHVFULSWLRQ'UXJ
)ORULGD 6% UHSRUWLQJUHTXLUHPHQWVRIWKH3'03$OORZVGHVLJQHHVRISUHVFULEHUVDQGGLVSHQVHUVWR
0RQLWRULQJ3URJUDP
DFFHVVWKH3'03
&ULPHVDQG $XWKRUL]HVWKHUHWHQWLRQRISUHVFULSWLRQPRQLWRULQJSURJUDPLQIRUPDWLRQIRUWZR\HDUV
*HRUJLD $FW +% RIIHQVHVHOHFWURQLF 3URYLGHVIRUGHOHJDWHVRISUHVFULEHUVDQGGLVSHQVHUVWRDFFHVV3'03GDWD5HYLVHV
GDWDEDVHRI ODQJXDJHUHODWLQJWRVXESRHQDVDQGVHDUFKZDUUDQWVIRU3'03GDWD3URYLGHVIRU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
SUHVFULSWLRQ DFFHVVLQJ3'03GDWDIRUSXUSRVHVRILQYHVWLJDWLRQRISRWHQWLDODEXVH$OORZVIRUWKH
LQIRUPDWLRQ UHOHDVHRIGHLGHQWLILHG3'03GDWDIRULQVWUXFWLRQDOGUXJDEXVHSUHYHQWLRQDQGUHVHDUFK
DXWKRUL]HWKH SXUSRVHV
UHWHQWLRQRIGDWD
EDVHLQIRUPDWLRQIRU
\HDUVSURYLVLRQV
*HRUJLD0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVRSLRLGFOLQLFDOFULWHULD
*HRUJLD DQGRSLRLGVWHSWKHUDS\UHTXLUHPHQWVLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
*HRUJLD QD QD
0HGLFDLG $FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH
6WDWH0HGLFDLG3URJUDPV
5HODWLQJWR $PHQGVYDULRXVVWDWXWHVWRFODULI\WKHUROHRIDGYDQFHGSUDFWLFHUHJLVWHUHGQXUVHVZLWK
+DZDLL $FW 6% $GYDQFHG3UDFWLFH UHJDUGVWRWKHLUDXWKRULW\DQGSDUWLFLSDWLRQLQWKHKHDOWKFDUHV\VWHPLQFOXGLQJJUDQWLQJ
5HJLVWHUHG1XUVHV $351VWKHDXWKRULW\WRSUHVFULEHFRQWUROOHGVXEVWDQFHV
5HODWLQJWRWKH-RLQW (OLPLQDWHVWKH-RLQW)RUPXODU\$GYLVRU\&RPPLWWHHDQGLQVWHDGDOORZVWKH%RDUGRI
+DZDLL $FW 6% )RUPXODU\$GYLVRU\ 1XUVLQJWRVROHO\GHWHUPLQHWKHH[FOXVLRQDU\IRUPXODU\IRUTXDOLILHGDGYDQFHGSUDFWLFH
&RPPLWWHH UHJLVWHUHGQXUVHV$351VZLWKSUHVFULSWLYHDXWKRULW\
3URKLELWVDOO6FKHGXOH,,QDUFRWLFFRQWUROOHGVXEVWDQFHVIURPEHLQJSUHVFULEHGRU
5HODWLQJWRWKH GLVSHQVHGIRUPRUHWKDQDGD\VXSSO\0DQGDWHVWKDWDVDSDUWRIWKHFRQWUROOHG
+DZDLL $FW 6% 8QLIRUP&RQWUROOHG VXEVWDQFHUHJLVWUDWLRQSURFHVVDOOSUDFWLWLRQHUVDQGSKDUPDFLHVVKDOOEHUHJLVWHUHGWR
6XEVWDQFHV$FW XWLOL]HWKHHOHFWURQLFSUHVFULSWLRQDFFRXQWDELOLW\V\VWHP([SDQGVWKHFODVVRISHUVRQVWR
ZKRP3'03GDWDPD\EHGLVFORVHG
6HVVLRQ/DZ 5HODWLQJWR $PHQGVH[LVWLQJODZWRSURYLGHWKDWPHGLFDOH[DPLQHUVRUFRURQHUVPD\DFFHVV
,GDKR +%
&KDSWHU 3UHVFULSWLRQV LQIRUPDWLRQLQWKHSUHVFULSWLRQVGDWDEDVH
5HODWLQJWRWKH
&RQWUROOHG $XWKRUL]HVFHUWDLQVXSHUYLVHGLQGLYLGXDOVGHOHJDWHVWRDFFHVVWKHSUHVFULSWLRQ
6HVVLRQ/DZ
,GDKR +% 6XEVWDQFHV PRQLWRULQJSURJUDPGDWDEDVH/LPLWVWKHQXPEHURIGHOHJDWHVWREHVXSHUYLVHG5HTXLUHV
&KDSWHU
3UHVFULSWLRQ %RDUGRI3KDUPDF\UHJLVWUDWLRQE\HDFKGHOHJDWH
'DWDEDVH
,GDKR
,GDKR0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHVIRU3UHVFULELQJ2SLRLGVIRU&KURQLF
'HSDUWPHQWRI
3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP)XUWKHUXSGDWHVZHUHPDGHWRRSLRLGTXDQWLW\
,GDKR +HDOWKDQG QD QD
OLPLWVSULRUDXWKRUL]DWLRQIRURSLRLGVDQGRSLRLGFOLQLFDOFULWHULD$FFRUGLQJWRDVXUYH\
:HOIDUH
DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
0HGLFDLG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
,OOLQRLV
'HSDUWPHQWRI $VDUHVXOWRIVDIHW\FRQFHUQVHIIHFWLYH$XJXVWIHQWDQ\OWUDQVGHUPDOSDWFKHV
)HQWDQ\OSURGXFWV
+HDOWKFDUHDQG ZLOOUHTXLUHSULRUDSSURYDOIRUDOOIHHIRUVHUYLFH+)6SDUWLFLSDQWV/RQJDFWLQJRSLRLG
,OOLQRLV QD QRQSUHIHUUHGLQ
)DPLO\ WKHUDS\RSWLRQVRQWKH3UHIHUUHG'UXJ/LVWDUHH[WHQGHGUHOHDVHPRUSKLQHRUDOWDEOHWVDQG
,OOLQRLV0HGLFDLG
6HUYLFHV (PEHGDFDSVXOHV
0HGLFDLG
,OOLQRLV
'HSDUWPHQWRI
+HDOWKFDUHDQG 0HWKDGRQH 'XHWRVDIHW\FRQFHUQV+)6LVUHPRYLQJPHWKDGRQHSURGXFWVIRUWKHWUHDWPHQWRISDLQ
,OOLQRLV QD
)DPLO\ 3UHVFULEHGIRU3DLQ IURPWKH,OOLQRLV+)63UHIHUUHG'UXJ/LVW3'/HIIHFWLYH$SULO
6HUYLFHV
0HGLFDLG
,OOLQRLV
'HSDUWPHQWRI
,OOLQRLV0HGLFDLGXSGDWHGUHTXLUHPHQWVUHODWHGWRSULRUDXWKRUL]DWLRQIRURSLRLGVLQWKHLU
+HDOWKFDUHDQG
,OOLQRLV QD QD )HHIRU6HUYLFHSURJUDP$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU
)DPLO\
)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
6HUYLFHV
0HGLFDLG
$OORZVSUHVFULEHUVWRLQFOXGHDQ,163(&73'03UHSRUWLQDSDWLHQW
VPHGLFDOILOH
$Q$FWWRDPHQGWKH
$OORZVDSDWLHQWWRDFFHVVDQ\3'03UHSRUWLQWKHLUPHGLFDOILOH$OORZVFRURQHUVDQG
,QGLDQD&RGH
SUHVFULEHUGHOHJDWHVWRDFFHVVWKH3'035HTXLUHVERDUGVWKDWUHJXODWHKHDOWKFDUH
,QGLDQD 3XEOLF/DZ +% &RQFHUQLQJ
SURYLGHUVWKDWSUHVFULEHRUGLVSHQVHSUHVFULSWLRQGUXJVWRHVWDEOLVKE\'HFHPEHU
3URIHVVLRQVDQG
SUHVFULELQJQRUPVDQGGLVSHQVLQJJXLGHOLQHVWKDWLIH[FHHGHGMXVWLI\WKHXQVROLFLWHG
2FFXSDWLRQV
GLVVHPLQDWLRQRIH[FHSWLRQUHSRUWV
$Q$FWWRDPHQGWKH
,QGLDQD&RGH
&UHDWHVWKHRIIHQVHRIGHDOLQJLQDFRQWUROOHGVXEVWDQFHE\DSUDFWLWLRQHUDQGHQKDQFHV
,QGLDQD 3XEOLF/DZ 6% &RQFHUQLQJ
WKHRIIHQVHLIWKHRIIHQVHFDXVHVWKHGHDWKRIDQRWKHUSHUVRQ
&ULPLQDO/DZDQG
3URFHGXUH
$Q$FWWRDPHQGWKH
3URKLELWV0HGLFDLGUHLPEXUVHPHQWIRU6XEXWH[6XER[RQHRUDVLPLODUWUDGHQDPHRU
,QGLDQD&RGH
,QGLDQD 3XEOLF/DZ 6% JHQHULFRIWKHGUXJLIWKHGUXJZDVSUHVFULEHGIRUWKHWUHDWPHQWRISDLQRUSDLQ
&RQFHUQLQJ+XPDQ
PDQDJHPHQWDQGWKHGUXJLVRQO\LQGLFDWHGIRUDGGLFWLRQWUHDWPHQW
6HUYLFHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
%RDUGRI LPSRVLWLRQRI FRQWDLQLQJSLOOVPRQWKIRUPRUHWKDQWKUHHFRQVHFXWLYHPRQWKVDPRUSKLQHHTXLYDOHQW
,QGLDQD UHTXLUHPHQWV GRVHRIPRUHWKDQ00(GD\IRUPRUHWKDQWKUHHFRQVHFXWLYHPRQWKVDWUDQVGHUPDO
H[HPSWLRQV RSLRLGSDWFKIRUPRUHWKDQWKUHHFRQVHFXWLYHPRQWKVWUDPDGROLQH[FHVVRI00(GD\
IRUPRUHWKDQWKUHHPRQWKVRUDQH[WHQGHGUHOHDVHRSLRLGWKDWLVQRWLQDQDEXVH
GHWHUUHQWIRUPIRUZKLFKWKHUHLVDQ)'$DSSURYHGDEXVHGHWHUUHQWIRUPDYDLODEOH
0HGLFDO ,$&
5HTXLUHVWKHSK\VLFLDQWRGLVFXVVZLWKWKHSDWLHQWWKHULVNVDQGEHQHILWVRIRSLRLG
/LFHQVLQJ 3K\VLFLDQGLVFXVVLRQ
,QGLDQD QD WUHDWPHQWIRUFKURQLFSDLQDVZHOODVH[SHFWDWLRQVUHODWHGWRSUHVFULSWLRQUHTXHVWVDQG
%RDUGRI ZLWKSDWLHQW
SURSHUPHGLFDWLRQXVH
,QGLDQD WUHDWPHQWDJUHHPHQW
0HGLFDO
/LFHQVLQJ ,$&'UXJ
,QGLDQD QD (VWDEOLVKHVUXOHVUHODWHGWRGUXJWHVWLQJZKLOHWUHDWLQJDSDWLHQWZLWKRSLRLGV
%RDUGRI PRQLWRULQJWHVWLQJ
,QGLDQD
,QGLDQD0HGLFDLGXSGDWHGUHTXLUHPHQWVUHODWHGWRRSLRLGTXDQWLW\OLPLWVSULRU
,QGLDQD DXWKRUL]DWLRQIRURSLRLGVRSLRLGFOLQLFDOFULWHULDDQGRSLRLGVWHSWKHUDS\UHTXLUHPHQWVLQ
,QGLDQD QD QD
0HGLFDLG WKHLU)HHIRU6HUYLFHSURJUDP$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-
.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
'LUHFWVWKH%RDUGRI3KDUPDF\WRLPSOHPHQWLPSURYHPHQWVWRIDFLOLWDWHVHFXUHDFFHVVWR
WKHSUHVFULSWLRQPRQLWRULQJSURJUDPWKURXJKHOHFWURQLFKHDOWKDQGSKDUPDF\LQIRUPDWLRQ
'UXJ3UHVFULELQJ
V\VWHPV7KHERDUGLVDXWKRUL]HGWRSURYLGH3'03LQIRUPDWLRQWRDQLQVWLWXWLRQDOXVHUWR
DQG'LVSHQVLQJ
,RZD &KDSWHU 6) IDFLOLWDWHVHFXUHDFFHVVE\SUHVFULELQJSUDFWLWLRQHUVRUSKDUPDFLVWVWRSURJUDP
,QIRUPDWLRQ
LQIRUPDWLRQWKURXJKHOHFWURQLFKHDOWKDQGSKDUPDF\LQIRUPDWLRQV\VWHPV$XWKRUL]HVWKH
3URJUDP$FFHVV
UHOHDVHRI3'03LQIRUPDWLRQIRUVWDWLVWLFDOSXEOLFUHVHDUFKSXEOLFSROLF\RUHGXFDWLRQDO
SXUSRVHVLIDOOWKHSHUVRQDOLGHQWLI\LQJLQIRUPDWLRQLVILUVWUHPRYHG
7KLVUXOHHVWDEOLVKHVVWDQGDUGVRISUDFWLFHIRUWKHPDQDJHPHQWRIDFXWHDQGFKURQLFSDLQ
(QFRXUDJHVWKHXVHRIQRQRSLRLGWKHUDSLHV&ODULILHVWKDWWKHXQGHUWUHDWPHQWRISDLQLVD
,RZD$GPLQ 6WDQGDUGVRI
GHSDUWXUHIURPWKHDFFHSWDEOHVWDQGDUGRISUDFWLFHLQ,RZD5HTXLUHVGRFXPHQWDWLRQ
&RGH SUDFWLFH
,RZD QD UHODWHGWRWKHWUHDWPHQWRIDFXWHDQGFKURQLFSDLQ8UJHVXVHRIDWKRURXJKSDWLHQW
DSSURSULDWHSDLQ
HYDOXDWLRQDFRPSUHKHQVLYHWUHDWPHQWSODQGRFXPHQWHGLQIRUPHGFRQVHQWSHULRGLF
PDQDJHPHQW
UHYLHZFRQVLGHUDWLRQRIFRQVXOWDWLRQRUUHIHUUDOZULWWHQSDLQPDQDJHPHQWWUHDWPHQW
DJUHHPHQWVXVHRIXULQHGUXJWHVWLQJDQGXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDP
,RZD0HGLFDLGEHJDQUHTXLULQJXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDPLQWKHLU)HH
,RZD ,RZD0HGLFDLG QD QD IRU6HUYLFHSURJUDPLQ8SGDWHVZHUHDOVRPDGHWRRSLRLGTXDQWLW\OLPLWVSULRU
DXWKRUL]DWLRQIRURSLRLGVRSLRLGVWHSWKHUDS\UHTXLUHPHQWVDQGRSLRLGFOLQLFDOFULWHULD
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH
6WDWH0HGLFDLG3URJUDPV
-RLQW3ROLF\
6WDWHPHQWIURP
.DQVDV%RDUGVRI
.DQVDV%RDUGV +HDOLQJ$UWV
0DNHVUHFRPPHQGDWLRQVUHJDUGLQJDVVHVVPHQWRIWKHSDWLHQWWUHDWPHQWSODQLQIRUPHG
RI+HDOLQJ 1XUVLQJDQG
.DQVDV QD FRQVHQWDQGWUHDWPHQWDJUHHPHQWSHULRGLFUHYLHZFRQVXOWDWLRQGRFXPHQWDWLRQLQWKH
$UWV1XUVLQJ 3KDUPDF\RQ8VHRI
PHGLFDOUHFRUGDQGFRPSOLDQFHZLWKFRQWUROOHGVXEVWDQFHVODZVDQGUHJXODWLRQV
DQG3KDUPDF\ &RQWUROOHG
6XEVWDQFHVIRU
7UHDWPHQWRI
&KURQLF3DLQ
.HQWXFN\0HGLFDLGPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQIRU
'HSDUWPHQWRI
RSLRLGVRSLRLGVWHSWKHUDS\UHTXLUHPHQWVDQGRSLRLGFOLQLFDOFULWHULDLQWKHLU)HHIRU
.HQWXFN\ 0HGLFDLG QD QD
6HUYLFHSURJUDPLQ8VHRIWKH3'03ZDVUHTXLUHG$FFRUGLQJWRDVXUYH\
6HUYLFHV
DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
7RHVWDEOLVKWKH/RXLVLDQD&RPPLVVLRQRQ3UHYHQWLQJ2SLRLG$EXVHWRVWXG\DQGPDNH
$&RQFXUUHQW UHFRPPHQGDWLRQVUHJDUGLQJERWKVKRUWWHUPDQGORQJWHUPPHDVXUHVWKDWFDQEHWDNHQWR
/RXLVLDQD +&5 +&5
5HVROXWLRQ WDFNOHSUHVFULSWLRQRSLRLGDQGKHURLQDEXVHDQGDGGLFWLRQLQ/RXLVLDQDE\XVLQJWKHEHVW
SUDFWLFHVDQGHYLGHQFHEDVHGVWUDWHJLHVIRULWVSUHYHQWLRQWUHDWPHQWDQGHQIRUFHPHQW
5HODWLYHWRWKH6WDWH
'LUHFWVWKH%RDUGWRHVWDEOLVKVWDQGDUGVE\UXOHPDNLQJIRUWKHUHWHQWLRQDUFKLYLQJDQG
/RXLVLDQD $FW1R 6% 3UHVFULSWLRQ
GHVWUXFWLRQRISUHVFULSWLRQPRQLWRULQJLQIRUPDWLRQ
0RQLWRULQJ3URJUDP
/RXLVLDQD /RXLVLDQD0HGLFDLGEHJDQUHTXLULQJXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDPLQWKHLU
'HSDUWPHQWRI )HHIRU6HUYLFHSURJUDPLQ8SGDWHVZHUHDOVRPDGHWRRSLRLGTXDQWLW\OLPLWVDQG
/RXLVLDQD QD QD
+HDOWK RSLRLGFOLQLFDOFULWHULD$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU
0HGLFDLG )DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
5HTXLUHVSUHVFULEHUVWRFKHFNWKH3'03XSRQDQLQLWLDOSUHVFULSWLRQIRUDQRSLRLGRU
$Q$FW7R3UHYHQW EHQ]RGLD]HSLQHDQGDJDLQHYHU\GD\V5HTXLUHVGLVSHQVHUVWRFKHFNWKH3'03SULRUWR
2SLDWH$EXVHE\ GLVSHQVLQJRSLRLGVRUEHQ]RGLD]HSLQHVDQGWKHGLVSHQVHUVKDOOQRWLI\WKHSURJUDPDQG
6WUHQJWKHQLQJWKH ZLWKKROGDSUHVFULSWLRQXQWLOWKHGLVSHQVHULVDEOHWRUHDFKWKHSUHVFULEHULIWKHGLVSHQVHU
0DLQH 63 /' &RQWUROOHG KDVUHDVRQWREHOLHYHWKHSUHVFULSWLRQLVIUDXGXOHQWRUGXSOLFDWLYH5HTXLUHVSUHVFULEHUVRI
6XEVWDQFHV RSLRLGVWRFRPSOHWHDWUDLQLQJFRXUVHRQWKHSUHVFULSWLRQRIRSLRLGSDLQPHGLFDWLRQWKDW
3UHVFULSWLRQ KDVEHHQDSSURYHGE\WKH'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV3URKLELWVRSLRLG
0RQLWRULQJ3URJUDP SUHVFULSWLRQVLQH[FHVVRIPRUSKLQHPLOOLJUDPHTXLYDOHQWVSHUGD\WRDQ\RQHSDWLHQW
3URKLELWVRSLRLGSUHVFULSWLRQVRIPRUHWKDQGD\VDWDWLPHZKHQWUHDWLQJFKURQLFSDLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
3URKLELWVRSLRLGSUHVFULSWLRQVRIPRUHWKDQGD\VZKHQWUHDWLQJDFXWHSDLQ5HTXLUHVDOO
RSLRLGSUHVFULSWLRQVWREHWUDQVPLWWHGHOHFWURQLFDOO\&UHDWHVILQHVIRUSUHVFULEHUVDQG
GLVSHQVHUVZKRNQRZLQJO\YLRODWHWKHVHVHFWLRQV
5HTXLUHVSURYLGHUVZKRSUHVFULEHFRQWUROOHGGDQJHURXVVXEVWDQFHVOLVWHGLQ6FKHGXOH,,
WKURXJK6FKHGXOH9WRUHJLVWHUZLWKWKH3UHVFULSWLRQ'UXJ0RQLWRULQJ3URJUDPEHIRUH
REWDLQLQJDQHZRUUHQHZDOUHJLVWUDWLRQ$XWKRUL]HVSUHVFULEHUDQGSKDUPDFLVWGHOHJDWHV
WRDFFHVVWKH3'03$XWKRUL]HVWKHSXEOLFDWLRQRIDOLVWRIPRQLWRUHGSUHVFULSWLRQGUXJV
WKDWKDYHDORZSRWHQWLDOIRUDEXVHE\LQGLYLGXDOV5HTXLUHVGLVSHQVHUVWRVXEPLW
'HSDUWPHQWRI
LQIRUPDWLRQWRWKH3'03RQFHHYHU\KRXUV5HTXLUHVSUHVFULEHUVDQGSKDUPDFLVWVWR
+HDOWKDQG0HQWDO
FRPSOHWHDFRXUVHRILQVWUXFWLRQDQGWUDLQLQJGHYHORSHGE\WKHGHSDUWPHQWUHJDUGLQJWKH
+\JLHQH
0DU\ODQG &KDSWHU +% HIIHFWLYHXVHRIWKH3'035HTXLUHVSUHVFULEHUVWRUHTXHVWDWOHDVWPRQWKVRI3'03
3UHVFULSWLRQ'UXJ
GDWDSULRUWRLQLWLDWLQJDFRXUVHRIWUHDWPHQWWKDWLQFOXGHVRSLRLGVRUEHQ]RGLD]HSLQHVDQG
0RQLWRULQJ3URJUDP
WKHQDJDLQHYHU\GD\V5HTXLUHVWKDWSUHVFULEHUVGRFXPHQWWKHLUXVHRIWKH3'03LQ
0RGLILFDWLRQV
WKHSDWLHQWPHGLFDOUHFRUG([HPSWVSUHVFULEHUVIURPFKHFNLQJWKH3'03LIWKH
SUHVFULSWLRQLVIRUGD\VRUOHVVIRUWKHWUHDWPHQWRIFDQFHUUHODWHGSDLQLQWKH
LQSDWLHQWVHWWLQJIRUDSDWLHQWZLWKDWHUPLQDOLOOQHVVIRUSDWLHQWVLQDVVLVWHGOLYLQJ
RUORQJWHUPFDUHRUIRUDFXWHSDLQIRUQRPRUHWKDQGD\VUHODWHGWRVXUJHU\
IUDFWXUHVVLJQLILFDQWWUDXPDRUFKLOGELUWK&UHDWHVDGGLWLRQDOH[HPSWLRQV
3K\VLFLDQV
3UHVFULSWLRQV
3URYLGLQJWKDWVSHFLILHGSURYLVLRQVRIODZGRQRWSURKLELWDOLFHQVHGSK\VLFLDQZKR
:ULWWHQE\
FRPSOLHVZLWKVSHFLILHGUHTXLUHPHQWVIURPSHUVRQDOO\SUHSDULQJDQGGLVSHQVLQJD
3K\VLFLDQ$VVLVWDQWV
0DU\ODQG &KDSWHU +% SUHVFULSWLRQZULWWHQE\DSK\VLFLDQDVVLVWDQWLQDFFRUGDQFHZLWKDVSHFLILHGGHOHJDWLRQ
RU1XUVH
DJUHHPHQWRUDQXUVHSUDFWLWLRQHUZKRLVDXWKRUL]HGWRSUDFWLFHXQGHUDVSHFLILHG
3UDFWLWLRQHUV
SURYLVLRQRIODZDQGLVZRUNLQJZLWKWKHSK\VLFLDQLQWKHVDPHRIILFHVHWWLQJ
3UHSDULQJDQG
'LVSHQVLQJ
6WDWH%RDUGRI
3K\VLFLDQV
1DWXURSDWKLF (VWDEOLVKHVD1DWXURSDWKLF'RFWRUV)RUPXODU\&RXQFLOZLWKLQWKH6WDWH%RDUGRI
'RFWRUV 3K\VLFLDQV5HTXLUHVWKH&RXQFLOWRGHYHORSIRUPXODU\UHFRPPHQGDWLRQVIRUWKH%RDUG
(VWDEOLVKPHQWRI 7KH%RDUGZLOOWKHQDGRSWDVSHFLILHGIRUPXODU\6SHFLILHVWKDW³QDWXURSDWKLFPHGLFLQH´
0DU\ODQG &KDSWHU 6%
1DWXURSDWKLF LQFOXGHVSUHVFULELQJGLVSHQVLQJRUDGPLQLVWHULQJQRQSUHVFULSWLRQDQGSUHVFULSWLRQ
'RFWRUV)RUPXODU\ GUXJVEXWVSHFLILFDOO\SURKLELWVWKHQDWXURSDWKLFIRUPXODU\IURPLQFOXGLQJFRQWUROOHG
&RXQFLODQG VXEVWDQFHV
1DWXURSDWKLF
)RUPXODU\
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
,QWHU$JHQF\+HURLQ
/DZUHQFH- ([HFXWLYH (VWDEOLVKHVWKH2SLRLG2SHUDWLRQDO&RPPDQG&HQWHU7KH&HQWHUVKDOOGHYHORS
DQG2SLRLG
0DU\ODQG +RJDQ-U 2UGHU RSHUDWLRQDOVWUDWHJLHVWRFRQWLQXHLPSOHPHQWLQJWKHUHFRPPHQGDWLRQVRIWKH+HURLQDQG
&RRUGLQDWLQJ
*RYHUQRU 2SLRLG(PHUJHQF\7DVN)RUFH
&RXQFLO
6HFWLRQSURYLGHVIRUDQH[DPLQDWLRQRIWKHSUHVFULELQJDQGWUHDWPHQWKLVWRU\
$Q$FWPDNLQJ LQFOXGLQJFRXUWRUGHUHGWUHDWPHQWRUWUHDWPHQWZLWKLQWKHFULPLQDOMXVWLFHV\VWHPRI
0DVVDFKXVHWWV &KDSWHU + DSSURSULDWLRQVIRU SHUVRQVLQWKHFRPPRQZHDOWKZKRVXIIHUHGIDWDORSLDWHRYHUGRVHVLQFDOHQGDU\HDU
WKHILVFDO\HDU DQGGLUHFWVWKHFUHDWLRQRIDUHSRUWLQDQDJJUHJDWHDQGGHLGHQWLILHGIRUPRQWUHQGV
GLVFRYHUHGWKURXJKWKHH[DPLQDWLRQ
$UHJLVWHUHGSKDUPDFLVWILOOLQJDSUHVFULSWLRQIRUDQRSLRLGVXEVWDQFHLQVFKHGXOH,,PD\
GLVSHQVHWKHSUHVFULEHGVXEVWDQFHLQDOHVVHUTXDQWLW\WKDQWKHUHFRPPHQGHGIXOOTXDQWLW\
LQGLFDWHGRQWKHSUHVFULSWLRQLIUHTXHVWHGE\WKHSDWLHQW7KHUHPDLQLQJTXDQWLW\LQH[FHVV
RIWKHTXDQWLW\UHTXHVWHGE\WKHSDWLHQWVKDOOEHYRLG3UDFWLWLRQHUVZKRSUHVFULEH
FRQWUROOHGVXEVWDQFHVH[FHSWYHWHULQDULDQVVKDOOEHUHTXLUHGDVDSUHUHTXLVLWHWR
REWDLQLQJRUUHQHZLQJWKHLUSURIHVVLRQDOOLFHQVHVWRFRPSOHWHDSSURSULDWHWUDLQLQJ
UHODWLYHWRLHIIHFWLYHSDLQPDQDJHPHQWLLWKHULVNVRIDEXVHDQGDGGLFWLRQDVVRFLDWHG
ZLWKRSLRLGPHGLFDWLRQLLLLGHQWLILFDWLRQRISDWLHQWVDWULVNIRUVXEVWDQFHXVHGLVRUGHUV
LYFRXQVHOLQJSDWLHQWVDERXWWKHVLGHHIIHFWVDGGLFWLYHQDWXUHDQGSURSHUVWRUDJHDQG
$Q$FW5HODWLYHWR
GLVSRVDORISUHVFULSWLRQPHGLFDWLRQVYDSSURSULDWHSUHVFULSWLRQTXDQWLWLHVIRU
6XEVWDQFH8VH
SUHVFULSWLRQPHGLFDWLRQVWKDWKDYHDQLQFUHDVHGULVNRIDEXVHDQGYLRSLRLGDQWDJRQLVWV
0DVVDFKXVHWWV &KDSWHU +% 7UHDWPHQW
RYHUGRVHSUHYHQWLRQWUHDWPHQWVDQGLQVWDQFHVLQZKLFKDSDWLHQWPD\EHDGYLVHGRQERWK
(GXFDWLRQDQG
WKHXVHRIDQGZD\VWRDFFHVVRSLRLGDQWDJRQLVWVDQGRYHUGRVHSUHYHQWLRQWUHDWPHQWV7KH
3UHYHQWLRQ
ERDUGVRIUHJLVWUDWLRQIRUHDFKSURIHVVLRQDOOLFHQVHWKDWUHTXLUHVWKLVWUDLQLQJVKDOO
GHYHORSWKHVWDQGDUGVIRUDSSURSULDWHWUDLQLQJSURJUDPV(VWDEOLVKHVUXOHVUHODWHGWR
SUHVFULSWLRQVIRUH[WHQGHGUHOHDVHORQJDFWLQJRSLRLGV$OORZVSDWLHQWVWRILOHYROXQWDU\
QRQRSLDWHGLUHFWLYHV:KHQLVVXLQJDSUHVFULSWLRQIRUDQRSLDWHWRDQDGXOWSDWLHQWIRU
RXWSDWLHQWXVHIRUWKHILUVWWLPHDSUDFWLWLRQHUVKDOOQRWLVVXHDSUHVFULSWLRQIRUPRUHWKDQ
DGD\VXSSO\$SUDFWLWLRQHUVKDOOQRWLVVXHDQRSLDWHSUHVFULSWLRQWRDPLQRUIRUPRUH
WKDQDGD\VXSSO\DWDQ\WLPHDQGVKDOOGLVFXVVZLWKWKHSDUHQWRUJXDUGLDQRIWKHPLQRU
WKHULVNVDVVRFLDWHGZLWKRSLDWHXVHDQGWKHUHDVRQVZK\WKHSUHVFULSWLRQLVQHFHVVDU\
5HTXLUHV3'03XVH
7KLV3URWRFROLVLQWHQGHGWR3URPRWHWKHGHOLYHU\RIVDIHTXDOLW\KHDOWKFDUHWRLQMXUHG
'HSDUWPHQWRI ZRUNHUV(QVXUHSDWLHQWSDLQUHOLHIDQGIXQFWLRQDOLPSURYHPHQW%HXVHGLQFRQMXQFWLRQ
2SLRLG&RQWUROOHG ZLWKRWKHUWUHDWPHQWJXLGHOLQHVQRWLQOLHXRIRWKHUUHFRPPHQGHGWUHDWPHQW3UHYHQWDQG
0DVVDFKXVHWWV ,QGXVWULDO QD
6XEVWDQFH3URWRFRO UHGXFHWKHQXPEHURIFRPSOLFDWLRQVFDXVHGE\SUHVFULSWLRQPHGLFDWLRQLQFOXGLQJ
$FFLGHQWV
DGGLFWLRQDQG5HFRPPHQGRSLRLGSUHVFULELQJSUDFWLFHVWKDWSURPRWHIXQFWLRQDO
UHVWRUDWLRQ5HTXLUHVLQSDUWULVNDVVHVVPHQW3'03FKHFNVXULQHGUXJWHVWLQJ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
WUHDWPHQWDJUHHPHQWVWDUWLQJZLWKWKHORZHVWSRVVLEOHHIIHFWLYHGRVHGRFXPHQWDWLRQLQ
WKHPHGLFDOUHFRUGLQIRUPHGFRQVHQWUHYLHZRIMREUHTXLUHPHQWVDQGJXLGDQFHUHJDUGLQJ
VDIHO\SHUIRUPLQJWKRVHGXWLHVZKLOHPHGLFDWHG'LVDOORZVLQLWLDWLQJWUHDWPHQWRIDFXWH
SDLQZLWKORQJDFWLQJRUH[WHQGHGUHOHDVHRSLRLGV,QLWLDOSUHVFULSWLRQVIRURSLRLGVDUH
OLPLWHGWRQRPRUHWKDQGD\V$GRSWV&'&GRVDJHUHFRPPHQGDWLRQV6WDWHVWKDW
SDWLHQWVVKRXOGQRWEHDEDQGRQHGEXWUDWKHUQHHGWREHWDSHUHGRIIRIRSLRLGPHGLFDWLRQV
DWSDLQUHVROXWLRQODFNRIIXQFWLRQDOLPSURYHPHQWHWF
0DVV+HDOWKKDVDGRSWHGWKH&'&*XLGHOLQHVIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQLQ
WKHLU)HHIRU6HUYLFHSURJUDP)XUWKHUWKH\DGRSWHGWKHJXLGHOLQHDVDUHTXLUHPHQWIRU
0DVV+HDOWK
0DVVDFKXVHWWV QD QD 0DQDJHG&DUH2UJDQL]DWLRQVWRDGRSW7KH\DOVRXSGDWHGWKHLUUHTXLUHPHQWVUHODWHGWR
0HGLFDLG
SULRUDXWKRUL]DWLRQIRURSLRLGV$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-
.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
+HDOWKRFFXSDWLRQV
DGYDQFHGSUDFWLFH
UHJLVWHUHGQXUVHV
OLFHQVXUHRI
3XEOLF$FW1R DGYDQFHGSUDFWLFH
0LFKLJDQ +% (VWDEOLVKHVSDUDPHWHUVXQGHUZKLFK$351
VPD\SUHVFULEHFRQWUROOHGVXEVWDQFHV
UHJLVWHUHGQXUVHV
$351VSURYLGH
IRUDQGSURYLGH
RWKHUJHQHUDO
DPHQGPHQWV
+HDOWKRFFXSDWLRQV
SK\VLFLDQ
V
3XEOLF$FW1R DVVLVWDQWVUHJXODWLRQ (VWDEOLVKHVSDUDPHWHUVXQGHUZKLFKSK\VLFLDQDVVLVWDQWVPD\SUHVFULEHFRQWUROOHG
0LFKLJDQ +%
DQGRYHUVLJKWRI VXEVWDQFHV
SK\VLFLDQ
V
DVVLVWDQWVPRGLI\
0LFKLJDQ0HGLFDLGXSGDWHGWKHRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQUHTXLUHPHQWV
0LFKLJDQ IRURSLRLGVRSLRLGFOLQLFDOFULWHULDDQGRSLRLGVWHSWKHUDS\UHTXLUHPHQWVLQWKHLU)HHIRU
0LFKLJDQ QD QD
0HGLFDLG 6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-
.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
$QDFWUHODWLQJWR $OORZVSKDUPDFLHVWRFROOHFWOHJHQGGUXJVIURPSDWLHQWVIRUWKHSXUSRVHRIGLVSRVLQJWKH
0LQQHVRWD &KDSWHU 6) KHDOWKDGGLQJ OHJHQGGUXJDVSKDUPDFHXWLFDOZDVWH6SHFLDOUXOHVDSSO\WRWKHFROOHFWLRQRIFRQWUROOHG
SURYLVLRQVWRWKH VXEVWDQFHV
GHILQLWLRQRIWKH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
³SUDFWLFHRI
SKDUPDF\´PDNLQJ
FKDQJHVFRQFHUQLQJ
WKHFROOHFWLRQDQG
GLVSRVDORIOHJHQG
GUXJVDV
SKDUPDFHXWLFDO
ZDVWHHWF
$QDFWUHODWLQJWR
KHDOWKPDNLQJ
6HWVWLPHIUDPHVUHJDUGLQJWKHUHWHQWLRQDQGGLVSRVDORIGHLGHQWLILHG3'03LQIRUPDWLRQ
FKDQJHVWRWKH
([SDQGVWKHFODVVRISHUVRQVHQWLWLHVZKRPD\DFFHVVWKH3'035HTXLUHVDOOSUHVFULEHUV
0LQQHVRWD &KDSWHU 6) 0LQQHVRWD
OLFHQVHGWRSUHVFULEHFRQWUROOHGVXEVWDQFHVZLWKLQWKHVWDWHWRUHJLVWHUDQGPDLQWDLQDXVHU
SUHVFULSWLRQ
DFFRXQWZLWKWKH3'03
PRQLWRULQJSURJUDP
HWF
%2SLRLG
%\6HSWHPEHUDQGDQQXDOO\WKHUHDIWHUWKHFRPPLVVLRQHURIKXPDQVHUYLFHV
SUHVFULELQJ
0LQQHVRWD VKDOOUHSRUWWRWKHOHJLVODWXUHRQWKHLPSOHPHQWDWLRQRIWKHRSLRLGSUHVFULELQJ
0LQQHVRWD LPSURYHPHQW
6WDWXWHV LPSURYHPHQWSURJUDPLQWKH0LQQHVRWDKHDOWKFDUHSURJUDPV7KHUHSRUWPXVWLQFOXGH
SURJUDPDQQXDO
GDWDRQWKHXWLOL]DWLRQRIRSLRLGVZLWKLQWKH0LQQHVRWDKHDOWKFDUHSURJUDPV
UHSRUWWROHJLVODWXUH
0LQQHVRWD0HGLFDLGXSGDWHGWKHRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFHSURJUDP
0LQQHVRWD
0LQQHVRWD QD QD LQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\
0HGLFDLG
)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
0LVVLVVLSSL 0LVVLVVLSSL0HGLFDLGXSGDWHGWKHRSLRLGFOLQLFDOFULWHULDLQWKHLU)HHIRU6HUYLFHSURJUDP
0LVVLVVLSSL 'LYLVLRQRI QD QD LQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\
0HGLFDLG )RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
0RQWDQD0HGLFDLGXSGDWHGWKHLURSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQUHTXLUHPHQWV
0RQWDQD IRURSLRLGVRSLRLGFOLQLFDOFULWHULDDQGRSLRLGVWHSWKHUDS\UHTXLUHPHQWVLQWKHLU)HHIRU
0RQWDQD QD QD
0HGLFDLG 6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-
.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
&KDQJHSUHVFULSWLRQ
6HFWLRQ GUXJPRQLWRULQJ 5HTXLUHVDOOGLVSHQVHGSUHVFULSWLRQVRIFRQWUROOHGVXEVWDQFHVWREHUHSRUWHGWRWKH3'03
1HEUDVND 6HFWLRQ /% SURYLVLRQVDQG GDLO\$OORZVGLVSHQVHUVDQGSUHVFULEHUVWRDXWKRUL]HGHVLJQHHVIRUSXUSRVHVRI
FUHDWHWKH9HWHULQDU\ VXEPLWWLQJLQIRUPDWLRQWRRUDFFHVVLQJWKH3'03
3UHVFULSWLRQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
0RQLWRULQJ3URJUDP
7DVN)RUFH
1HEUDVND
'HSDUWPHQWRI
1HEUDVND0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF
+HDOWKDQG
1HEUDVND QD QD 3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\
+XPDQ
-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
6HUYLFHV
0HGLFDLG
2SLRLGVDUHVXEMHFWWRSULRUDXWKRUL]DWLRQVWHSWKHUDS\FOLQLFDOFULWHULDDQGTXDQWLW\
OLPLWV2SLRLGVDUHRQO\FRYHUHGZLWKRXWSULRUDXWKRUL]DWLRQIRULQLWLDOSUHVFULSWLRQVRI
'LYLVLRQRI
GD\VRUOHVVIRUDWRWDORIGD\SUHVFULSWLRQVLQDQ\UROOLQJPRQWKSHULRGDQGIRU
+HDOWK&DUH
0HGLFDLG6HUYLFHV SUHVFULSWLRQVIRUOHVVWKDQ00(GD\7RH[FHHGWKHTXDQWLW\OLPLWVWKHSDWLHQWPXVW
1HYDGD )LQDQFLQJDQG QD
0DQXDO KDYHFKURQLFSDLQWKDWFDQQRWEHFRQWUROOHGWKURXJKXVHRIQRQRSLRLGVWKHORZHVW
3ROLF\
HIIHFWLYHGRVHPXVWEHXVHGDQGDSDLQFRQWUDFWPXVWEHRQILOH([FHSWLRQVWRWKHOLPLWV
0HGLFDLG
H[LVWIRUFDQFHUUHODWHGSDLQSRVWVXUJLFDOSDLQSDOOLDWLYHDQGORQJWHUPFDUHWKRVHZLWK
+,9$,'6DQGSUHVFULSWLRQVZULWWHQE\RULQFRQVXOWDWLRQZLWKDSDLQVSHFLDOLVW
5HODWLYHWR
SUHVFULSWLRQVIRU
FRQWUROOHGGUXJVE\
WHOHPHGLFLQHDQG
UHODWLYHWR
&ODULILHVZKHQLWLVDSSURSULDWHIRUSUDFWLWLRQHUVWRDGMXVWRUSUHVFULEHFRQWUROOHGGUXJVWR
1HZ+DPSVKLUH &KDSWHU +% UXOHPDNLQJ
SDWLHQWVE\WHOHPHGLFLQH
DXWKRULW\DQG
HQIRUFHPHQW
FRQFHUQLQJSULFHV
IRUILOOLQJFHUWDLQ
SUHVFULSWLRQV
5HTXLUHVERDUGRIPHGLFLQHERDUGRIGHQWDOH[DPLQHUVERDUGRIQXUVLQJERDUGRI
5HODWLYHWR UHJLVWUDWLRQLQRSWRPHWU\ERDUGRISRGLDWU\QDWXURSDWKLFERDUGRIH[DPLQHUVDQGERDUG
UXOHPDNLQJIRU RIYHWHULQDU\PHGLFLQHWRDGRSWUXOHVIRUSUHVFULELQJFRQWUROOHGGUXJV&RQWDLQV
1HZ+DPSVKLUH &KDSWHU +%
SUHVFULELQJ PDQGDWRU\VWDQGDUGVIRUVXFKUXOHVVXFKDVPDQGDWRU\ULVNDVVHVVPHQWVHVWDEOLVKPHQWRI
FRQWUROOHGGUXJV WUHDWPHQWSODQV3'03FKHFNVLQIRUPHGFRQVHQWDQGUHTXLULQJWKHORZHVWHIIHFWLYH
GRVDJHIRUWKHIHZHVWQXPEHURIGD\V
0DNLQJDQ $SSURSULDWHVIRUWKHSXUSRVHVRIWHFKQRORJ\XSJUDGHVIRUWKHFRQWUROOHGGUXJ
1HZ+DPSVKLUH &KDSWHU 6% DSSURSULDWLRQWRWKH SUHVFULSWLRQKHDOWKDQGVDIHW\SURJUDP3'03
RIILFHRI
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
SURIHVVLRQDO
OLFHQVXUHDQG
FHUWLILFDWLRQIRU
WHFKQRORJ\XSJUDGHV
IRUWKHFRQWUROOHG
GUXJSUHVFULSWLRQ
KHDOWKDQGVDIHW\
SURJUDPDQGUHODWLYH
WRWKHIRUIHLWXUHRI
SURSHUW\
5HODWLYHWRWKH
FRQWUROOHGGUXJ
SUHVFULSWLRQKHDOWK
DQGVDIHW\SURJUDP
DQGHVWDEOLVKLQJD $GGVQDWXURSDWKVWRWKHGHILQLWLRQRISUDFWLWLRQHUIRUWKHSXUSRVHVRIWKHFRQWUROOHGGUXJ
FRPPLVVLRQWRVWXG\ SUHVFULSWLRQKHDOWKDQGVDIHW\SURJUDP3'03(VWDEOLVKHVDFRPPLVVLRQWRVWXG\
1HZ+DPSVKLUH &KDSWHU 6%
UHTXLULQJFRQWUROOHG UHTXLULQJFRQWUROOHGGUXJVDQGFRQWUROOHGGUXJDQDORJVWREHSURYLGHGLQDEXVHGHWHUUHQW
GUXJVDQGFRQWUROOHG IRUPXODWLRQ
GUXJDQDORJVWREH
SURYLGHGLQDEXVH
GHWHUUHQW
IRUPXODWLRQ
5HODWLYHWRWKH
JRYHUQRU
V
FRPPLVVLRQRQ
DOFRKRODQGGUXJ
DEXVHSUHYHQWLRQ 0DNHVFKDQJHVLQWKHPHPEHUVKLSRUJDQL]DWLRQGXWLHVPHHWLQJVDQGUHSRUWVRIWKH
WUHDWPHQWDQG JRYHUQRU
VFRPPLVVLRQRQDOFRKRODQGGUXJDEXVHSUHYHQWLRQWUHDWPHQWDQGUHFRYHU\
UHFRYHU\DQG DQGHVWDEOLVKHVWKDWWKHFRPPLVVLRQVHUYHVLQDQDGYLVRU\FDSDFLW\WRERWKWKHJRYHUQRU
1HZ+DPSVKLUH &KDSWHU 6% PDNLQJ DQGWKHJHQHUDOFRXUW0DNHVVXSSOHPHQWDODSSURSULDWLRQVWRWKHFRPPLVVLRQWKH1HZ
VXSSOHPHQWDO +DPSVKLUHKRXVLQJILQDQFHDXWKRULW\DQGWKHGHSDUWPHQWRIKHDOWKDQGKXPDQVHUYLFHV
DSSURSULDWLRQVWRWKH $XWKRUL]HVWKHGHSDUWPHQWRIMXVWLFHWRDFFHSWJLIWVJUDQWVDQGGRQDWLRQVIRUWKHSXUSRVH
FRPPLVVLRQWKH RIIXQGLQJDQDVVLVWDQWDWWRUQH\JHQHUDOGHGLFDWHGWRSURVHFXWLQJGUXJFDVHV
1HZ+DPSVKLUH
KRXVLQJILQDQFH
DXWKRULW\DQGWKH
GHSDUWPHQWRIKHDOWK
DQGKXPDQVHUYLFHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
EXUHDXRIGUXJDQG
DOFRKROVHUYLFHV
5HODWLYHWRWKH
SHQDOW\IRU
SRVVHVVLRQDQGXVH
RIIHQWDQ\OFODVV
GUXJVLQVXUDQFH
FRYHUDJHIRU
$GGVSRVVHVVLRQDQGXVHRIIHQWDQ\OFODVVGUXJVIRUWKHSXUSRVHVRIWKHSHQDOW\XQGHUWKH
VXEVWDQFHXVH
FRQWUROOHGGUXJDFW&ODULILHVWKHIXQGLQJRIWKHFRQWUROOHGGUXJSUHVFULSWLRQKHDOWKDQG
GLVRUGHUVWKH
VDIHW\SURJUDP3'03&ODULILHVDFFHVVWRWKH3'035HTXLUHVSUHVFULEHUVRI
1HZ+DPSVKLUH &KDSWHU 6% IXQGLQJRIWKH
FRQWUROOHGGUXJVWRTXHU\WKH3'03SULRUWRSUHVFULELQJFRQWUROOHGVXEVWDQFHVDQGWR
FRQWUROOHGGUXJ
WDNHKRXUVRIFRQWLQXLQJHGXFDWLRQRUDQRQOLQHH[DPLQDWLRQ$GGVSK\VLFLDQ
SUHVFULSWLRQKHDOWK
PHPEHUVWRWKHPHGLFDOUHYLHZVXEFRPPLWWHH
DQGVDIHW\SURJUDP
WKHPHPEHUVKLSRI
WKHERDUGRI
PHGLFLQHDQG
SUHVFULEHUVRI
FRQWUROOHGGUXJV
5XOHVUHJDUGLQJDFXWHSDLQFKURQLFSDLQORZHVWHIIHFWLYHGRVHIRUOLPLWHGGXUDWLRQ
%RDUGRI ,PSOHPHQWLQJ 0HG2SLRLG GRFXPHQWDWLRQLQIRUPHGFRQVHQWVDIHGLVSRVDOFRPSOLDQFHZLWKUXOHVULVNDVVHVVPHQW
1HZ+DPSVKLUH
0HGLFLQH +% 3UHVFULELQJ RSLRLGOLPLWVFRQVXOWDWLRQZLWKDSDLQVSHFLDOLVWXULQHGUXJWHVWLQJWUHDWPHQW
DJUHHPHQWV3'03HWF
5XOHVIRUQXUVHVUHJDUGLQJDFXWHSDLQFKURQLFSDLQORZHVWHIIHFWLYHGRVHIRUOLPLWHG
%RDUGRI ,PSOHPHQWLQJ 1XU2SLRLG GXUDWLRQGRFXPHQWDWLRQLQIRUPHGFRQVHQWVDIHGLVSRVDOFRPSOLDQFHZLWKUXOHVULVN
1HZ+DPSVKLUH
1XUVLQJ +% 3UHVFULELQJ DVVHVVPHQWRSLRLGOLPLWVFRQVXOWDWLRQZLWKDSDLQVSHFLDOLVWXULQHGUXJWHVWLQJ
WUHDWPHQWDJUHHPHQWV3'03HWF
1HZ+DPSVKLUH0HGLFDLGEHJDQUHTXLULQJRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDPLQ
1HZ+DPSVKLUH 1+0HGLFDLG QD QD WKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH
+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
3UHVFULEHUV5HTXLUHG
WR4XHU\WKH
1+5HY6WDW 3UHVFULEHUVVKDOOTXHU\WKH3'03IRUDSDWLHQW
VLQLWLDOSUHVFULSWLRQZKHQSUHVFULELQJ
3URJUDP3ULRUWR
1HZ+DPSVKLUH % VFKHGXOH,,,,,DQG,9RSLRLGVIRUWKHPDQDJHPHQWRUWUHDWPHQWRISDLQDQGWKHQ
3UHVFULELQJ
SHULRGLFDOO\DQGDWOHDVWWZLFHSHU\HDUZLWKH[FHSWLRQV
&RQWUROOHG
6XEVWDQFHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
5HTXLUHVSUHVFULEHUV
WRGLVFXVVDGGLFWLRQ
ULVNDVVRFLDWHGZLWK 5HTXLUHVSUHVFULEHUVWRGLVFXVVDGGLFWLRQULVNDVVRFLDWHGZLWK6FKHGXOH,,FRQWUROOHG
1HZ-HUVH\ &KDSWHU 6 FHUWDLQGUXJVSULRU VXEVWDQFHVSULRUWRLVVXLQJSUHVFULSWLRQWRPLQRUSDWLHQW5HTXLUHVWKHGRFXPHQWDWLRQRI
WRLVVXLQJ WKLVGLVFXVVLRQLQWKHSDWLHQW
VPHGLFDOUHFRUG
SUHVFULSWLRQWR
PLQRUSDWLHQW
1HZ-HUVH\0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQUHTXLUHPHQWVIRU
1HZ-HUVH\ RSLRLGVDQGRSLRLGFOLQLFDOFULWHULDLQWKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJ
1HZ-HUVH\ QD QD
0HGLFDLG WRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH
0HGLFDLG3URJUDPV
5HTXLUHVSUDFWLWLRQHUVWRREWDLQDQGUHYLHZ3'03UHSRUWVSULRUWRSUHVFULELQJRU
2SLRLG3UHVFULSWLRQ GLVSHQVLQJDQRSLRLGIRUWKHILUVWWLPHWRDSDWLHQWDQGWKHQDJDLQHYHU\WKUHHPRQWKV
1HZ0H[LFR &KDSWHU 6%
0RQLWRULQJ 5HTXLUHVWKHSUDFWLWLRQHUWRGRFXPHQWWKHUHFHLSWDQGUHYLHZRIWKH3'03UHSRUWLQWKH
SDWLHQW
VPHGLFDOUHFRUG
3UDFWLWLRQHUVVKRXOGDYRLGSUHVFULELQJRSLRLGSDLQPHGLFDWLRQVDQGEHQ]RGLD]HSLQHV
*RYHUQRUV FRQFXUUHQWO\ZKHQHYHUSRVVLEOH3UDFWLWLRQHUVVKRXOGDGKHUHWRWKHVXPPDU\RIWKH
3UHVFULSWLRQ &HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU
'UXJ0LVXVH &KURQLF3DLQ&'&*XLGHOLQHSXEOLVKHGLQWKH1HZ(QJODQG-RXUQDORI0HGLFLQHDQG
DQG2YHUGRVH ,PSOHPHQWLQJ WKHFRPSOHWH&'&*XLGHOLQHLQDGGLWLRQWRWKHRQHSDJHVXPPDU\GRFXPHQW3URYLGHUV
1HZ0H[LFR 3UHYHQWLRQDQG UHYLVLRQVWRWKH VKRXOGQRWXVHWKH*XLGHOLQHWRRYHUULGHDSURYLGHU¶VMXGJHPHQWUHJDUGLQJDVSHFLILF
5HFRPPHQGDWLRQV
3DLQ 3DLQ5HOLHI$FW SDWLHQWEXWUDWKHUWRJXLGHVNLOOIXODQGDSSURSULDWHSDLQPDQDJHPHQW7KHPHGLFDO
0DQDJHPHQW SURYLGHUOLFHQVLQJERDUGVVKRXOGQRWXVHWKH&'&*XLGHOLQHWRVHWVWULFWSROLF\RUWR
$GYLVRU\ HQIRUFHSUDFWLFHVWDQGDUGV/LFHQVLQJHQWLWLHVVKRXOGSURPXOJDWHUXOHVUHTXLULQJ
&RXQFLO SUDFWLWLRQHUVWROLPLWDQLQLWLDORSLRLGSUHVFULSWLRQIRUDFXWHSDLQWRQRPRUHWKDQDGD\
VXSSO\IRUDVLQJOHSUHVFULSWLRQ
5HTXLUHVSUHVFULEHUVRISDLQPHGLFDWLRQVWRXQGHUJRWKUHHKRXUVRIFRQWLQXLQJHGXFDWLRQ
3DLQ0DQDJHPHQW HYHU\WKUHH\HDUVRQSDLQPDQDJHPHQWDQGSDOOLDWLYHFDUH5HVWULFWVWRVHYHQGD\VDQ
$6%
1HZ<RUN &KDSWHU 'UXJV6XEVFULEHU LQLWLDORSLRLGSUHVFULSWLRQIRUDFXWHSDLQDQGLWOLPLWVWKHFRSD\LIDGGLWLRQDOPHGLFDWLRQ
7UDLQLQJ LVQHHGHGIRUWKHVDPHXQGHUO\LQJLVVXH3KDUPDFLVWVDOVRPXVWSURYLGHHGXFDWLRQDO
PDWHULDOVWRFRQVXPHUVXSRQGLVSHQVLQJRIDFRQWUROOHGVXEVWDQFH
7RDPHQGWKHSXEOLF 5HTXLUHVDOOVWDWHZLGHRYHUGRVHLQIRUPDWLRQQRWMXVWIDWDORYHUGRVHGDWDWREHLQFOXGHG
KHDOWKODZLQ LQWKH'HSDUWPHQWRI+HDOWK
V'2+UHSRUWWKDWZLOOEHSRVWHGDQQXDOO\RQ'2+
V
1HZ<RUN &KDSWHU 6% UHODWLRQWRUHSRUWLQJ ZHEVLWHQRODWHUWKDQWKHILUVWGD\RI2FWREHU7KHUHSRUW
VLQIRUPDWLRQZLOOLGHQWLI\E\
RIRSLRLGRYHUGRVH HDFKRIWKHVWDWH
VUHJLRQVZKHUHWKHGLVSHQVLQJRIRSLRLGDQWDJRQLVWVLVRFFXUULQJLQ
GDWDDQGSURYLGLQJ RUGHUWREHWWHULGHQWLI\WKHDUHDVWKDWDUHH[SHULHQFLQJKLJKUDWHVRIRYHUGRVHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
IRUWKHUHSHDORI
FHUWDLQSURYLVLRQV
XSRQH[SLUDWLRQ
WKHUHRI
7RDPHQGWKHSXEOLF
KHDOWKODZLQ
UHODWLRQWRLQFOXGLQJ
D/\PHGLVHDVHDQG
WLFNERUQHLQIHFWLRQ
$GGVD/\PHDQGWLFNERUQHGLVHDVHDZDUHQHVVDQGSUHYHQWLRQLQLWLDWLYHWRWKHVWDWHV
1HZ<RUN &KDSWHU 6% DZDUHQHVVDQG
+HDOWK&DUHDQG:HOOQHVV(GXFDWLRQ3URJUDP
SUHYHQWLRQSURJUDP
ZLWKLQWKHKHDOWK
FDUHDQGZHOOQHVV
HGXFDWLRQDQG
RXWUHDFKSURJUDP
'LVDOORZVSUHVFULELQJRUGLVSHQVLQJ6FKHGXOH,,9FRQWUROOHGVXEVWDQFHVWR³DGGLFWV´RU
³KDELWXDOXVHUV´XQOHVVDQH[FHSWLRQDSSOLHV(VWDEOLVKHVUXOHVIRUWKHODEHOLQJRI
FRQWUROOHGVXEVWDQFHV1RPRUHWKDQDGD\VXSSO\RUSXUVXDQWWRUHJXODWLRQVRIWKH
6FKHGXOHG FRPPLVVLRQHUHQXPHUDWLQJFRQGLWLRQVZDUUDQWLQJVSHFLILHGJUHDWHUVXSSOLHVQRPRUH
1<3XE VXEVWDQFHV WKDQDWKUHHPRQWKVXSSO\RIDVFKHGXOH,,,,,RU,9VXEVWDQFHDVGHWHUPLQHGE\WKH
1HZ<RUN +HDOWK QD DGPLQLVWHULQJDQG GLUHFWHGGRVDJHDQGIUHTXHQF\RIGRVDJHPD\EHGLVSHQVHGE\DQDXWKRUL]HGSUDFWLWLRQHU
GLVSHQVLQJE\ DWRQHWLPH$SUDFWLWLRQHUPD\QRWSUHVFULEHPRUHWKDQDVHYHQGD\VXSSO\RIDQ\
SUDFWLWLRQHUV VFKHGXOH,,,,,RU,9RSLRLGWRDQXOWLPDWHXVHUXSRQWKHLQLWLDOFRQVXOWDWLRQRUWUHDWPHQW
RIVXFKXVHUIRUDFXWHSDLQ 8SRQDQ\VXEVHTXHQWFRQVXOWDWLRQVIRUWKHVDPHSDLQWKH
SUDFWLWLRQHUPD\LVVXHDQ\DSSURSULDWHUHQHZDOUHILOORUQHZSUHVFULSWLRQIRUWKHRSLRLG
RUDQ\RWKHUGUXJ
(IIHFWLYH-XO\LQLWLDORSLRLGSUHVFULELQJIRUDFXWHSDLQLVOLPLWHGWRDVHYHQ
GD\VXSSO\SHU1HZ<RUN6WDWH3XEOLF+HDOWK/DZ6HFWLRQVHHDERYH7KH
'HSDUWPHQWRI+HDOWKZLOOFRPPXQLFDWHDGDWHLQWKHQHDUIXWXUHZKHQWKLVZLOOEH
V\VWHPDWLFDOO\HQIRUFHGE\WKH0HGLFDLG)HHIRU6HUYLFH3URJUDP7KHIROORZLQJ
'HSDUWPHQWRI SURFHGXUHLVEHLQJSXWLQSODFHXQWLOVXFKWLPHWKDWWKH'HSDUWPHQWLVDEOHWRLPSOHPHQW
1HZ<RUN +HDOWK QD QD DQDXWRPDWHGVROXWLRQWRH[HPSWFRSD\PHQWVIRUVXFKVXEVHTXHQWRSLRLGSUHVFULSWLRQV
0HGLFDLG 3URFHGXUH,IDSUHVFULEHULQLWLDWHVDVXEVHTXHQWSUHVFULSWLRQIRUWKHVDPHSDLQPHGLFDWLRQ
ZLWKLQGD\VRIWKHLQLWLDOGD\VXSSO\DQGWKHSKDUPDFLVWLVQRWLILHGDQGRUFRQILUPV
WKLVXSRQUHYLHZLQJWKHSDWLHQW¶VSUHVFULSWLRQKLVWRU\RUXWLOL]LQJ3UR'85HGLWLQJWKH
IROORZLQJPD\EHXVHGWRH[HPSWWKHFRSD\PHQWIRUWKHVXEVHTXHQWSUHVFULSWLRQ,Q
1&3'3ILHOG(8HQWHUDYDOXH³´([HPSW&RSD\DQGRU&RLQVXUDQFH$OWKRXJK
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
SKDUPDFLVWVVKRXOGFRQWLQXHWRXVHDOORIWKHWRROVDWWKHLUGLVSRVDOZKHQGLVSHQVLQJ
RSLRLGSUHVFULSWLRQVSKDUPDFLVWVDUHQRWUHTXLUHGWRYHULI\ZLWKWKHSUHVFULEHUZKHWKHU
DQRSLRLGSUHVFULSWLRQZULWWHQIRUJUHDWHUWKDQDGD\VXSSO\LVLQDFFRUGDQFHZLWKWKH
DERYHUHIHUHQFHGVWDWXWRU\UHTXLUHPHQWV3KDUPDFLVWVPD\FRQWLQXHWRGLVSHQVHRSLRLGV
DVSUHVFULEHGFRQVLVWHQWZLWKFXUUHQWODZVUHJXODWLRQVDQG0HGLFDLGSROLFLHV
1HZ<RUN0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF
'HSDUWPHQWRI
3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP)XUWKHUWKH\DGRSWHGWKHJXLGHOLQHDVD
1HZ<RUN +HDOWK QD QD
UHTXLUHPHQWIRU0DQDJHG&DUH2UJDQL]DWLRQVWRDGRSW$FFRUGLQJWRDVXUYH\
0HGLFDLG
DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
1&0HGLFDLG 1RUWK&DUROLQD0HGLFDLGXSGDWHGRSLRLGVWHSWKHUDS\UHTXLUHPHQWVLQWKHLU)HHIRU
1RUWK&DUROLQD DQG+HDOWK QD QD 6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-
&KRLFH .DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
1RUWK'DNRWD0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQIRURSLRLGV
RSLRLGFOLQLFDOFULWHULDRSLRLGVWHSWKHUDS\UHTXLUHPHQWVDQGUHTXLUHPHQWVUHODWHGWR
1RUWK'DNRWD
1RUWK'DNRWD QD QD UHTXLUHGXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDPLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
0HGLFDLG
$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\
)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
8UJHVUHYLVLRQRI 7RHQFRXUDJHWKHIHGHUDO&HQWHUVIRU0HGLFDUHDQG0HGLFDLG6HUYLFHVWRUHYLVHVXUYH\
2KLR +&5 +&5 SDWLHQWSDLQ PHDVXUHVLQFOXGHGLQWKH+RVSLWDO&RQVXPHU$VVHVVPHQWRI+HDOWKFDUH3URYLGHUVDQG
PDQDJHPHQWVXUYH\ 6\VWHPVWKDWUHODWHWRSDWLHQWSDLQPDQDJHPHQW
*RYHUQRUV
&DELQHW2SLDWH
$FWLRQ7HDP 2KLR*XLGHOLQHIRU
7KLVJXLGHOLQHSURYLGHVDJHQHUDODSSURDFKWRWKHRXWSDWLHQWPDQDJHPHQWRIDFXWHSDLQ,W
*&2$7DQG WKH0DQDJHPHQWRI
LVQRWLQWHQGHGWRWDNHWKHSODFHRIFOLQLFLDQMXGJHPHQW'LVFXVVHVDVVHVVPHQWDQG
2KLR WKHZRUNJURXS QD $FXWH3DLQ2XWVLGH
GLDJQRVLVRISDLQGHYHORSPHQWRIDWUHDWPHQWSODQXVHRIQRQSKDUPDFRORJLFVDQGQRQ
RQ2SLRLGV RI(PHUJHQF\
RSLRLGVGLIIHUHQWW\SHVRISDLQRSLRLGSKDUPDFRORJLFWUHDWPHQWSDLQUHHYDOXDWLRQHWF
DQG2WKHU 'HSDUWPHQWV
&RQWUROOHG
6XEVWDQFHV
2NODKRPD0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQUHTXLUHPHQWVIRU
6RRQHU&DUH RSLRLGVRSLRLGVWHSWKHUDS\UHTXLUHPHQWVDQGUHTXLUHGXVHRIWKHSUHVFULSWLRQ
2NODKRPD 2NODKRPD QD QD PRQLWRULQJSURJUDPLQWKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJWRD
0HGLFDLG VXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG
3URJUDPV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
5HODWLQJWR
5HTXLUHV2UHJRQ+HDOWK$XWKRULW\WRGLVFORVHSUHVFULSWLRQPRQLWRULQJLQIRUPDWLRQWR
SUHVFULSWLRQGUXJV
2UHJRQ &KDSWHU +% SUDFWLWLRQHURUSKDUPDFLVWRUPHPEHURISUDFWLWLRQHU
VRUSKDUPDFLVW
VVWDIIIRUXVHLQ
DQGGHFODULQJDQ
FHUWDLQKHDOWKLQIRUPDWLRQWHFKQRORJ\V\VWHPV
HPHUJHQF\
+HDOWK
6WDWHRI2UHJRQ
(YLGHQFH 5HWLUHGRQ-DQXDU\WKLVZDVDFOLQLFDOSUDFWLFHJXLGHOLQHEDVHGRQWKH-RLQW
(YLGHQFHEDVHG
5HYLHZ 3UDFWLFH*XLGHOLQHRIWKH$PHULFDQ&ROOHJHRI3K\VLFLDQVDQGWKH$PHULFDQ3DLQ
&OLQLFDO*XLGHOLQHV
2UHJRQ &RPPLVVLRQ QD 6RFLHW\&RQWDLQHGUHFRPPHQGDWLRQVUHODWHGWRSDWLHQWHYDOXDWLRQURXWLQHLPDJLQJ
3URMHFW(YDOXDWLRQ
2UHJRQ+HDOWK LPDJLQJIRUVXVSHFWHGFRQGLWLRQVDGYDQFHGLPDJLQJSKDUPDFRORJLFWKHUDS\LQFOXGLQJ
DQG0DQDJHPHQWRI
$XWKRULW\ RSLRLGVDQGQRQRSLRLGVDQGQRQSKDUPDFRORJLFWKHUDS\
/RZ%DFN3DLQ
0HGLFDLG
6WULFWO\OLPLWVRSLRLGVIRUDOORQ0HGLFDLG)RUDFXWHSDLQILUVWZHHNVRSLRLG
WUHDWPHQWLVRQO\DYDLODEOHZKHQWKHSUHVFULSWLRQLVGD\VRUOHVVIRUVKRUWDFWLQJ
RSLRLGVRQO\ZKHQRQHRUPRUHQRQRSLRLGVKDYHEHHQWULHGDQGIRXQGLQHIIHFWLYHRU
FRQWUDLQGLFDWHGDQGZKHQSUHVFULEHGZLWKDSODQWRNHHSDFWLYHDQGZLWKFRQVLGHUDWLRQRI
DGGLWLRQDOQRQSKDUPDFRORJLFDOWKHUDSLHV7KHUHFDQEHQRGRFXPHQWHGKLVWRU\RURSLRLG
+HDOWK
PLVXVHRUDEXVH)RUSDLQDIWHUZHHNVDQGXSWRGD\VWUHDWPHQWZLWKRSLRLGV
(YLGHQFH
UHTXLUHVGRFXPHQWHGHYLGHQFHRILPSURYHGIXQFWLRQRIDWOHDVWFRPSDUHGWR
5HYLHZ 2SLRLG3UHVFULELQJ
EDVHOLQHFRSUHVFULSWLRQRIQRQSKDUPDFRORJLFDOWUHDWPHQWVDFXSXQFWXUHSK\VLFDO
2UHJRQ &RPPLVVLRQ QD IRU&RQGLWLRQVRIWKH
WKHUDS\HWFDQGHDFKSUHVFULSWLRQLVIRUQRPRUHWKDQGD\VDQGIRUVKRUWDFWLQJ
2UHJRQ+HDOWK %DFNDQG6SLQH
RSLRLGVRQO\$IWHUGD\VRSLRLGVPD\EHFRQVLGHUHG21/<ZKHQWKHUHLVDVLJQLILFDQW
$XWKRULW\
FKDQJHLQVWDWXVVXFKDVDFOLQLFDOO\VLJQLILFDQWYHULILDEOHQHZLQMXU\RUVXUJHU\)RU
0HGLFDLG
SDWLHQWVZLWKFKURQLFSDLQIURPGLDJQRVHVRQWKHVHOLQHVFXUUHQWO\WUHDWHGZLWKORQJWHUP
RSLRLGWKHUDS\RSLRLGVPXVWEHWDSHUHGRIIZLWKDWDSHURIDERXWSHUZHHN
UHFRPPHQGHG%\WKHHQGRIDOOSDWLHQWVFXUUHQWO\WUHDWHGZLWKORQJWHUPRSLRLG
WKHUDS\PXVWEHWDSHUHGRIIRIORQJWHUPRSLRLGVIRUGLDJQRVHVRQWKHVHOLQHV8SGDWHV
ZHUHPDGHUHJDUGLQJWKHUHTXLUHGXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDP
$KHDOWKFDUHSUDFWLWLRQHUPD\QRWSUHVFULEHDQRSLRLGGUXJSURGXFWWRDQLQGLYLGXDO
VHHNLQJWUHDWPHQWLQDQHPHUJHQF\GHSDUWPHQWRUXUJHQWFDUHFHQWHURUZKRLVLQ
REVHUYDWLRQVWDWXVLQDKRVSLWDOLQDTXDQWLW\VXIILFLHQWWRWUHDWWKDWLQGLYLGXDOIRUPRUH
WKDQVHYHQGD\V,ILQWKHSURIHVVLRQDOPHGLFDOMXGJPHQWRIDKHDOWKFDUHSUDFWLWLRQHU
6DIH(PHUJHQF\ PRUHWKDQDVHYHQGD\VXSSO\RIDQRSLRLGGUXJSURGXFWLVUHTXLUHGWRWUHDWDSDWLHQW
V
3HQQV\OYDQLD $FW +%
3UHVFULELQJ$FW DFXWHPHGLFDOFRQGLWLRQRULVQHFHVVDU\IRUWKHWUHDWPHQWRISDLQDVVRFLDWHGZLWKDFDQFHU
GLDJQRVLVRUIRUSDOOLDWLYHFDUHWKHQWKHKHDOWKFDUHSUDFWLWLRQHUPD\LVVXHDSUHVFULSWLRQ
IRUWKHTXDQWLW\QHHGHGWRWUHDWVXFKDFXWHPHGLFDOFRQGLWLRQRUSDLQDVVRFLDWHGZLWKD
FDQFHUGLDJQRVLVRUIRUSDOOLDWLYHFDUH7KHFRQGLWLRQWULJJHULQJSUHVFULSWLRQRIWKHRSLRLG
GUXJSURGXFWXQGHUWKLVSDUDJUDSKVKDOOEHGRFXPHQWHGLQWKHSDWLHQW
VPHGLFDOUHFRUG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
DQGWKHKHDOWKFDUHSUDFWLWLRQHUPXVWLQGLFDWHWKDWDQRQRSLRLGGUXJSURGXFWDOWHUQDWLYH
ZDVQRWDSSURSULDWHWRWUHDWWKHPHGLFDOFRQGLWLRQ$KHDOWKFDUHSUDFWLWLRQHULQDQ
HPHUJHQF\GHSDUWPHQWRUXUJHQWFDUHFHQWHURUZKRLVFDULQJIRUDSDWLHQWLQREVHUYDWLRQ
VWDWXVPD\QRWZULWHDSUHVFULSWLRQUHILOOIRUDQRSLRLGGUXJSURGXFW5HTXLUHVUHIHUUDOWR
WUHDWPHQWXQGHUFHUWDLQFLUFXPVWDQFHV5HTXLUHVWKHSUHVFULELQJKHDOWKFDUHSUDFWLWLRQHU
WRTXHU\WKH3'03EXWWKLVGRHVQRWDSSO\WRDQ\PHGLFDWLRQSURYLGHGWRDSDWLHQWLQWKH
FRXUVHRIWUHDWPHQWZKLOHXQGHUJRLQJFDUHLQDQHPHUJHQF\GHSDUWPHQW
$GLVSHQVHUVKDOOTXHU\WKH3'03EHIRUHGLVSHQVLQJDQRSLRLGGUXJSURGXFWRUD
EHQ]RGLD]HSLQHSUHVFULEHGWRDSDWLHQWLIWKHSDWLHQWLVDQHZSDWLHQWRIWKHGLVSHQVHUWKH
$FKLHYLQJ%HWWHU
SDWLHQWSD\VFDVKZKHQWKH\KDYHLQVXUDQFHWKHSDWLHQWUHTXHVWVDUHILOOHDUO\RUWKH
&DUH%\0RQLWRULQJ
SDWLHQWLVJHWWLQJRSLRLGGUXJSURGXFWVRUEHQ]RGLD]HSLQHVIURPPRUHWKDQRQHSUHVFULEHU
$OO3UHVFULSWLRQV
$QHZSDWLHQWGRHVQRWLQFOXGHDQLQGLYLGXDOJRLQJWRWKHVDPHSKDUPDF\RUDGLIIHUHQW
3HQQV\OYDQLD $FW 6% 3URJUDP$%&
SK\VLFDOORFDWLRQRIWKDWSKDUPDF\LIWKHSDWLHQW
VUHFRUGLVDYDLODEOHWRWKHGLVSHQVHU$
0$3$FW
SUHVFULEHUVKDOOFKHFNWKH3'03HDFKWLPHDSDWLHQWLVSUHVFULEHGDQRSLRLGGUXJSURGXFW
2PQLEXV
RUEHQ]RGLD]HSLQHE\WKHSUHVFULEHU5HTXLUHVSUHVFULEHUVDQGGLVSHQVHUVWRFRPSOHWHDW
$PHQGPHQWV
OHDVWWZRKRXUVRIHGXFDWLRQLQSDLQPDQDJHPHQWRULGHQWLILFDWLRQRIDGGLFWLRQDQGDW
OHDVWWZRKRXUVRIHGXFDWLRQLQWKHSUDFWLFHVRISUHVFULELQJRUGLVSHQVLQJRIRSLRLGV
(VWDEOLVKHVVWULFWUXOHVUHJDUGLQJRSLRLGSUHVFULSWLRQVWRPLQRUV&RQWDLQVDGD\OLPLW
3UHVFULELQJ2SLRLGV
3HQQV\OYDQLD $FW 6% ZLWKH[FHSWLRQVLQIRUPHGFRQVHQWPDQGDWHVGRFXPHQWDWLRQLQWKHPHGLFDOUHFRUG
WR0LQRUV
SDUHQWDOFRQVHQWUXOHVHWF
,PSOHPHQWVD3DWLHQW9ROXQWDU\1RQRSLRLG'LUHFWLYH)XUWKHU%HJLQQLQJ$XJXVW
WKHOLFHQVLQJERDUGVVKDOOE\MRLQWUHJXODWLRQLPSOHPHQWDVDIHSUHVFULSWLRQRID
FRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLGFXUULFXOXP7KHFXUULFXOXPPD\EHRIIHUHGLQ
FROOHJHVRUE\SURYLGHUVDSSURYHGE\WKHOLFHQVLQJERDUGVDQGVKDOOLQFOXGHDOORIWKH
IROORZLQJ&XUUHQWDJHDSSURSULDWHLQIRUPDWLRQUHODWLQJWRSDLQPDQDJHPHQW
6DIH2SLRLG
3HQQV\OYDQLD $FW 6% 0XOWLPRGDOWUHDWPHQWVIRUFKURQLFSDLQWKDWPLQLPL]HWKHXVHRIDFRQWUROOHGVXEVWDQFH
3UHVFULSWLRQ
FRQWDLQLQJDQRSLRLG,IDFRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLGLVLQGLFDWHG
LQVWUXFWLRQRQVDIHPHWKRGVRISUHVFULELQJDFRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLG
WKDWIROORZJXLGHOLQHEDVHGFDUH,GHQWLILFDWLRQRISDWLHQWVZKRKDYHULVNIDFWRUVIRU
GHYHORSLQJSUREOHPVZLWKSUHVFULSWLRQRIDFRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLG
7UDLQLQJRQPDQDJLQJVXEVWDQFHXVHGLVRUGHUVDVDFKURQLFGLVHDVH
*XLGHOLQHVUHODWHGWRRSLRLGXVHLQJHULDWULFSDWLHQWVFRYHULQJVXEMHFWVVXFKDVDYRLGLQJ
*HULDWULF3DLQ XVHRIORQJDFWLQJRSLRLGVLQROGHUDGXOWVVLWXDWLRQVLQZKLFKORZGRVHRSLRLGVPD\EH
'HSDUWPHQWRI
3HQQV\OYDQLD QD 2SLRLG8VHDQG6DIH LQGLFDWHGLQIRUPHGFRQVHQWWUHDWPHQWSODQVRSLRLGV
HIIHFWRQFRJQLWLYHIXQFWLRQXVHRI
+HDOWK
3UHVFULELQJ GDLO\SLOOER[RUJDQL]HUVLQLWLDWLQJORZHUGRVHVWKDQW\SLFDOO\XVHGLQDGXOWSRSXODWLRQV
XVHRISDLQVSHFLDOLVWVIRUKLJKGRVDJHVHWF
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
*XLGHOLQHVUHODWHGWRGLVSHQVLQJRSLRLGVFRYHULQJWRSLFVVXFKDVDSSURSULDWHPRQLWRULQJ
'HSDUWPHQWRI 2SLRLG'LVSHQVLQJ IRUVDIHW\DQGHIILFDF\ZHDQLQJVFKHGXOHVFRRUGLQDWLRQRIFDUHUHFRJQL]LQJRSLRLG
3HQQV\OYDQLD QD
+HDOWK *XLGHOLQHV HTXLYDOHQFLHVYHULI\LQJWKHOHJLWLPDF\RIWKHSDWLHQWSURYLGHUDQGSUHVFULSWLRQGUXJ
LQWHUDFWLRQVVDIHGRVDJHVSDWLHQWHGXFDWLRQFRPPXQLFDWLRQZLWKSUHVFULEHUVHWF
3HQQV\OYDQLD 3HQQV\OYDQLD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQIRU
0HGLFDO RSLRLGVDQGRSLRLGFOLQLFDOFULWHULDLQWKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJ
3HQQV\OYDQLD QD QD
$VVLVWDQFH WRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH
0HGLFDLG 0HGLFDLG3URJUDPV
8QLIRUPHG $XWKRUL]HVDQ\YHQGRUDJHQWFRQWUDFWRURUGHVLJQHHZKRRSHUDWHVDQHOHFWURQLFPHGLFDO
5KRGH,VODQG &KDSWHU + &RQWUROOHG KHDOWKUHFRUG(05RUFOLQLFDOPDQDJHPHQWV\VWHPWRKDYHDFFHVVWRWKHSUHVFULSWLRQ
6XEVWDQFH$FW GUXJPRQLWRULQJSURJUDP3'03
8QLIRUP&RQWUROOHG
6XEVWDQFHV$FW
5HTXLUHVSKDUPDFLHVWRWUDQVPLWSUHVFULSWLRQLQIRUPDWLRQWRWKH3'03ZLWKLQKRXUV
UHJXODWLRQ2I
RIGLVSHQVLQJDQRSLRLG3URYLGHVOLPLWVRQDPRXQWVRIRSLRLGVWREHSUHVFULEHGDOORZLQJ
0DQXIDFWXULQJ
QRPRUHWKDQ00(GD\IRUDPD[LPXPRIWRWDOGRVHVIRUDFXWHSDLQ'LUHFWVWKH
'LVWULEXWLQJ
5KRGH,VODQG &KDSWHU + 'LUHFWRURI+HDOWKWRGHYHORSUHJXODWLRQVIRUDSSURSULDWHWUDLQLQJLQEHVWSUHVFULELQJ
3UHVFULELQJ
SUDFWLFHVQHHGHGIRUOLFHQVHUHQHZDO0DNHVUHJLVWUDWLRQZLWKWKH3'03DFRQGLWLRQRI
$GPLQLVWHULQJ$QG
OLFHQVHUHQHZDO7KH3'03VKDOOEHUHYLHZHGE\SUHVFULEHUVRUWKHLUGHVLJQHHVSULRUWR
'LVSHQVLQJ
LQLWLDWLQJRSLRLGWKHUDS\DQGWKHQDWOHDVWHYHU\WKUHHPRQWKV
&RQWUROOHG
6XEVWDQFHV
,PSURYHVWKHXVHIXOQHVVDQGYDOXHRIWKHSUHVFULSWLRQGUXJPRQLWRULQJGDWDEDVHSURJUDP
8QLIRUP&RQWUROOHG
5KRGH,VODQG &KDSWHU + E\DGGLQJDQDO\WLFDOIXQFWLRQVUHTXLULQJSURJUDPXSGDWHVDWOHDVWZHHNO\DQG
6XEVWDQFHV$FW
LQFRUSRUDWLQJGDWDIURPVLPLODUSURJUDPVLQRWKHUVWDWHV
8QLIRUP&RQWUROOHG
6XEVWDQFHV$FW
5HTXLUHVSKDUPDFLHVWRWUDQVPLWSUHVFULSWLRQLQIRUPDWLRQWRWKH3'03ZLWKLQKRXUV
UHJXODWLRQ2I
RIGLVSHQVLQJDQRSLRLG3URYLGHVOLPLWVRQDPRXQWVRIRSLRLGVWREHSUHVFULEHGDOORZLQJ
0DQXIDFWXULQJ
QRPRUHWKDQ00(GD\IRUDPD[LPXPRIWRWDOGRVHVIRUDFXWHSDLQ'LUHFWVWKH
'LVWULEXWLQJ
5KRGH,VODQG &KDSWHU 6 'LUHFWRURI+HDOWKWRGHYHORSUHJXODWLRQVIRUDSSURSULDWHWUDLQLQJLQEHVWSUHVFULELQJ
3UHVFULELQJ
SUDFWLFHVQHHGHGIRUOLFHQVHUHQHZDO0DNHVUHJLVWUDWLRQZLWKWKH3'03DFRQGLWLRQRI
$GPLQLVWHULQJ$QG
OLFHQVHUHQHZDO7KH3'03VKDOOEHUHYLHZHGE\SUHVFULEHUVRUWKHLUGHVLJQHHVSULRUWR
'LVSHQVLQJ
LQLWLDWLQJRSLRLGWKHUDS\DQGWKHQDWOHDVWHYHU\WKUHHPRQWKV
&RQWUROOHG
6XEVWDQFHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
8QLIRUPHG $XWKRUL]HVDQ\YHQGRUDJHQWFRQWUDFWRURUGHVLJQHHZKRRSHUDWHVDQHOHFWURQLFPHGLFDO
5KRGH,VODQG &KDSWHU 6 &RQWUROOHG KHDOWKUHFRUG(05RUFOLQLFDOPDQDJHPHQWV\VWHPWRKDYHDFFHVVWRWKHSUHVFULSWLRQ
6XEVWDQFH$FW GUXJPRQLWRULQJSURJUDP3'03
,PSURYHVWKHXVHIXOQHVVDQGYDOXHRIWKHSUHVFULSWLRQGUXJPRQLWRULQJGDWDEDVHSURJUDP
8QLIRUP&RQWUROOHG
5KRGH,VODQG &KDSWHU 6 E\DGGLQJDQDO\WLFDOIXQFWLRQVUHTXLULQJSURJUDPXSGDWHVDWOHDVWZHHNO\DQG
6XEVWDQFHV$FW
LQFRUSRUDWLQJGDWDIURPVLPLODUSURJUDPVLQRWKHUVWDWHV
5KRGH,VODQG0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVDQGRSLRLGFOLQLFDOFULWHULD
5KRGH,VODQG
5KRGH,VODQG QD QD LQWKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\
0HGLFDLG
WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
6RXWK&DUROLQD
6RXWK&DUROLQD0HGLFDLGEHJDQUHTXLULQJXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDPLQ
+HDOWK\
6RXWK&DUROLQD QD QD WKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH
&RQQHFWLRQV
+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
0HGLFDLG
5HODWLYHWR $OORZVSKDUPDFLVWVWRH[HUFLVHSURIHVVLRQDOMXGJPHQWWRGLVSHQVHYDU\LQJTXDQWLWLHVRI
'LVSHQVLQJRI PHGLFDWLRQSHUILOOXSWRWKHWRWDOQXPEHURIGRVDJHXQLWVSUHVFULEHGEXWH[SUHVVO\VWDWHV
7HQQHVVHH 3XE&K +%
3UHVFULSWLRQ WKDWWKLVVHFWLRQGRHVQRWDSSO\WRFRQWUROOHGVXEVWDQFHVRUDQ\PHGLFDWLRQVIRUZKLFKD
0HGLFDWLRQ UHSRUWWRWKH3'03LVUHTXLUHG
+RVSLWDOVDQG+HDOWK
&DUH)DFLOLWLHV$V
HQDFWHGLPSRVHV
OLFHQVXUHDQGRWKHU $PHQGVH[LVWLQJUHTXLUHPHQWVIRUWKHRSHUDWLRQRIDSDLQPDQDJHPHQWFOLQLFLQFOXGLQJ
7HQQHVVHH 3XE&K 6% UHTXLUHPHQWVRQ DGGLQJDOLFHQVXUHUHTXLUHPHQWDQGDUHTXLUHPHQWWKDWDSDLQPDQDJHPHQWFOLQLFREWDLQD
SDLQPDQDJHPHQW FHUWLILFDWHRIQHHG
FOLQLFV$PHQGV
7&$7LWOHDQG
7LWOH
5HODWLYHWRWKH
&RQWUROOHG
5HTXLUHVUHSUHVHQWDWLYHVRIWKH&RQWUROOHG6XEVWDQFH'DWDEDVH$GYLVRU\&RPPLWWHHWR
7HQQHVVHH 3XE&K 6% 6XEVWDQFH'DWDEDVH
DSSHDUEHIRUHOHJLVODWLYHFRPPLWWHHVWRXSGDWHWKHPRQWKHFRPPLWWHH
VILQGLQJV
$GYLVRU\
&RPPLWWHH
5HODWLYHWR5HYLHZ $XWKRUL]HVWKHFRPPLVVLRQHURIKHDOWKWRREWDLQUHFRUGVPDLQWDLQHGE\DQ\KHDOWKFDUH
7HQQHVVHH 3XE&K 6% RI3UHVFULEHUV IDFLOLW\LQRUGHUWRIDFLOLWDWHLQYHVWLJDWLRQVDQGLQTXLULHVFRQFHUQLQJRSLRLGGUXJDEXVH
$VVRFLDWLRQZLWK RSLRLGGUXJRYHUGRVHVDQGRSLRLGRYHUGRVHGHDWKV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
2YHUGRVHVRI
3UHVFULSWLRQ2SLDWHV
6SHFLILHVWKDWRQDQGDIWHU-XO\DQHZDSSOLFDQWPD\RQO\TXDOLI\DVDSDLQ
5HODWLYHWR
PDQDJHPHQWVSHFLDOLVWWKURXJKERDUGFHUWLILFDWLRQE\WKH$PHULFDQERDUGRI
4XDOLILFDWLRQVIRUD
7HQQHVVHH 3XE&K 6% LQWHUYHQWLRQDOSDLQSK\VLFLDQV$%,33E\SDVVLQJSDUWVDQGRILWVH[DPLQDWLRQDQG
3DLQ0DQDJHPHQW
KROGLQJDQXQHQFXPEHUHG7HQQHVVHHOLFHQVHDQGPDLQWDLQLQJWKHPLQLPXPQXPEHURI
6SHFLDOLVW
&0(KRXUVLQSDLQPDQDJHPHQWWRVDWLVI\UHWHQWLRQRI$%,33GLSORPDWHVWDWXV
5HODWLYHWR
6HWVUHTXLUHPHQWVWKDWSUHVFULEHUVPXVWPHHWLQRUGHUWRGLVSHQVHRSLRLGVRU
7HQQHVVHH 3XE&K 6% 'LVSHQVLQJ2SLRLGV
EHQ]RGLD]HSLQHV
RU%HQ]RGLD]HSLQHV
'HOHWHVDQGUHSODFHVSUHH[LVWLQJSURYLVLRQVUHODWHGWRWKHFRQWUROOHGVXEVWDQFHGDWDEDVH
FRPPLWWHH'LUHFWVWKHFRPPLWWHHWRH[DPLQH3'03GDWDWRLGHQWLI\XQXVXDOSDWWHUQVRI
7HQQHVVHH
SUHVFULELQJDQGGLVSHQVLQJDQGUHIHUWKRVHSUDFWLWLRQHUVWRWKHFKLHIERDUGRISKDUPDF\
7HQQHVVHH 3XE&K 6% 3UHVFULSWLRQ6DIHW\
LQYHVWLJDWRU(VWDEOLVKHVQHZ3'03UHSRUWLQJUHTXLUHPHQWV5HTXLUHVDOOSUHVFULEHUVDQG
$FWRI
GLVSHQVHUVRIFRQWUROOHGVXEVWDQFHVWRUHJLVWHUZLWKWKH3'03(VWDEOLVKHVWKHSHUVRQV
DQGHQWLWLHVWKDWPD\DFFHVV3'03GDWD
7HQQ&DUHPDGHXSGDWHVUHODWHGWRRSLRLGTXDQWLW\OLPLWVSULRUDXWKRUL]DWLRQIRURSLRLGV
7HQQ&DUH RSLRLGFOLQLFDOFULWHULDRSLRLGVWHSWKHUDS\UHTXLUHPHQWVDQGUHTXLUHGXVHRIWKH
7HQQHVVHH 7HQQHVVHH QD QD SUHVFULSWLRQPRQLWRULQJSURJUDPLQWKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJWR
0HGLFDLG DVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH
0HGLFDLG3URJUDPV
5HYLVHGSDLQPDQDJHPHQWUXOHVUHODWHGWRHYDOXDWLRQRIWKHSDWLHQWGRFXPHQWDWLRQ
0LQLPXP
WUHDWPHQWSODQVLQIRUPHGFRQVHQWWUHDWPHQWDJUHHPHQWVXULQHGUXJWHVWLQJOLPLWDWLRQV
7H[DV0HGLFDO 5HTXLUHPHQWVIRU
7H[DV QD RQZKRPD\SUHVFULEHWRSDWLHQWVEHLQJWUHDWHGIRUSDLQOLPLWDWLRQRIRQO\RQHSKDUPDF\
%RDUG WKH7UHDWPHQWRI
IRUDSDWLHQWEHLQJWUHDWHGIRUSDLQGLVFRQWLQXDWLRQWDSHULQJFRQVXOWDWLRQDQGUHIHUUDO
&KURQLF3DLQ
HWF
&HUWLILFDWLRQ
7H[DV0HGLFDO
7H[DV QD RI3DLQ0DQDJHPHQW 0DNHVXSGDWHVWRWKHUXOHVSHUWDLQLQJWR&HUWLILFDWLRQRI3DLQ0DQDJHPHQW&OLQLFV
%RDUG
&OLQLFV
$PHQGVWKH&RQWUROOHG6XEVWDQFHVFKDSWHUUHODWLQJWRGHILQLWLRQVRIILFLDOSUHVFULSWLRQ
7H[DV6WDWH
&RQWUROOHG IRUPVSKDUPDF\UHVSRQVLELOLW\HOHFWURQLFUHSRUWLQJHPHUJHQF\SUHVFULSWLRQV
7H[DV %RDUGRI QD
6XEVWDQFHV PRGLILFDWLRQRISUHVFULSWLRQV2XWRI6WDWHSUHVFULEHUVUHOHDVHRISUHVFULSWLRQGDWD
3KDUPDF\
6FKHGXOH,,,9SUHVFULSWLRQIRUPVDFFHVVUHTXLUHPHQWVHWF
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
7H[DV0HGLFDLGXSGDWHGRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFHSURJUDPLQ
7H[DV
7H[DV QD QD $FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWR
0HGLFDLG
WKH6WDWH0HGLFDLG3URJUDPV
$PHQGVWKHUHTXLUHPHQWIRUDJHQHUDODFXWHKRVSLWDOWRUHSRUWWRWKH'LYLVLRQRI
2FFXSDWLRQDODQG3URIHVVLRQDO/LFHQVLQJDGPLVVLRQVIRUSRLVRQLQJRURYHUGRVHLQYROYLQJ
DSUHVFULEHGFRQWUROOHGVXEVWDQFH5HTXLUHVFRXUWVWRUHSRUWWRWKHGLYLVLRQFHUWDLQ
YLRODWLRQVRIWKH8WDK&RQWUROOHG6XEVWDQFHV$FW$PHQGVWKHSXUSRVHVRIWKHGLYLVLRQ
V
6HVVLRQ/DZ &RQWUROOHG
8WDK +% FRQWUROOHGVXEVWDQFHGDWDEDVH5HTXLUHVWKHGLYLVLRQWRHQWHULQWRWKHGDWDEDVH
&KDSWHU 6XEVWDQFH5HSRUWLQJ
LQIRUPDWLRQLWUHFHLYHVLQUHSRUWVE\KRVSLWDOVFRQFHUQLQJSHUVRQVDGPLWWHGIRUSRLVRQLQJ
LQYROYLQJDSUHVFULEHGFRQWUROOHGVXEVWDQFH5HTXLUHVWKHGLYLVLRQWRHQWHULQWRWKH
GDWDEDVHLQIRUPDWLRQLWUHFHLYHVLQUHSRUWVE\FRXUWVFRQFHUQLQJSHUVRQVFRQYLFWHGIRU
GULYLQJXQGHUWKHLQIOXHQFHRIDSUHVFULEHGFRQWUROOHGVXEVWDQFH
5HTXLUHVWKHPHGLFDOH[DPLQHUWRSURYLGHDUHSRUWWRWKH'LYLVLRQRI2FFXSDWLRQDODQG
3URIHVVLRQDO/LFHQVLQJ'23/ZKHQWKHPHGLFDOH[DPLQHUGHWHUPLQHVWKDWDGHDWK
UHVXOWHGIURPSRLVRQLQJRURYHUGRVHLQYROYLQJDSUHVFULEHGFRQWUROOHGVXEVWDQFH
5HJDUGLQJ 5HTXLUHVWKDWZKHQ'23/UHFHLYHVDUHSRUWGHVFULEHGLQWKHSUHFHGLQJSDUDJUDSK'23/
6HVVLRQ/DZ
8WDK +% &RQWUROOHG VKDOOQRWLI\HDFKSUDFWLWLRQHUZKRPD\KDYHZULWWHQDSUHVFULSWLRQIRUWKHFRQWUROOHG
&KDSWHU
6XEVWDQFHV VXEVWDQFHLQYROYHGLQWKHSRLVRQLQJRURYHUGRVH$OORZVSUREDWLRQDQGSDUROHRIILFHUVWR
REWDLQLQIRUPDWLRQLQWKHFRQWUROOHGVXEVWDQFHGDWDEDVHZLWKRXWDZDUUDQW$OORZVWKH
GLYLVLRQWRSURYLGHLQIRUPDWLRQWRODZHQIRUFHPHQWRIILFHUVHQJDJHGLQVSHFLILHGW\SHVRI
LQYHVWLJDWLRQV
$PHQGVWKH&RQWUROOHG6XEVWDQFH'DWDEDVH$FWWRDOORZDSHUVRQIRUZKRPDFRQWUROOHG
VXEVWDQFHLVSUHVFULEHGWRGHVLJQDWHDWKLUGSDUW\ZKRLVWREHQRWLILHGZKHQDFRQWUROOHG
&RQWUROOHG VXEVWDQFHSUHVFULSWLRQLVGLVSHQVHGWRWKHSHUVRQ$OORZVWKHSHUVRQWRGLUHFWWKHGLYLVLRQ
6HVVLRQ/DZ 6XEVWDQFH WRGLVFRQWLQXHSURYLGLQJWKHLQIRUPDWLRQ5HTXLUHVWKDWWKHGLYLVLRQDGYLVHWKHSHUVRQ
8WDK +%
&KDSWHU 3UHVFULSWLRQ WKDWLIWKHSHUVRQGLVFRQWLQXHVWKHQRWLILFDWLRQWKHWKLUGSDUW\ZLOOEHDGYLVHGRIWKH
1RWLILFDWLRQ GLVFRQWLQXDQFH5HTXLUHVWKDWWKHGLYLVLRQFRPSO\ZLWKWKHGLUHFWLRQDQGDOVRQRWLI\WKH
WKLUGSDUW\RIWKHGLVFRQWLQXDWLRQ$XWKRUL]HVWKHGLYLVLRQWRPDNHDGPLQLVWUDWLYHUXOHVWR
IDFLOLWDWHLPSOHPHQWDWLRQRIWKLVSURYLVLRQ
$FFHVVWR2SLRLG 5HTXLUHVWKH'LYLVLRQRI2FFXSDWLRQDODQG3URIHVVLRQDO/LFHQVLQJZLWKLQWKH'HSDUWPHQW
3UHVFULSWLRQ RI&RPPHUFHWRPDNHRSLRLGSUHVFULSWLRQGDWDLQIRUPDWLRQLQLWVFRQWUROOHGVXEVWDQFH
6HVVLRQ/DZ ,QIRUPDWLRQYLD GDWDEDVHDFFHVVLEOHWRDQRSLRLGSUHVFULEHURUSKDUPDFLVWYLDWKHSUHVFULEHU
VRU
8WDK +%
&KDSWHU 3UDFWLWLRQHU'DWD SKDUPDFLVW
VHOHFWURQLFGDWDV\VWHP/LPLWVDFFHVVWRDQGXVHRIWKHLQIRUPDWLRQE\DQ
0DQDJHPHQW HOHFWURQLFGDWDV\VWHPDSUHVFULEHURUDSKDUPDFLVWLQDFFRUGDQFHZLWKUXOHVHVWDEOLVKHG
6\VWHPV E\WKHGLYLVLRQ5HTXLUHVUXOHPDNLQJE\WKHGLYLVLRQ5HTXLUHVWKHGLYLVLRQWR
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
SHULRGLFDOO\DXGLWXVHRIWKHLQIRUPDWLRQ$PHQGV&RQWUROOHG6XEVWDQFH'DWDEDVH$FW
SHQDOW\SURYLVLRQV
0DQGDWHVWKDWDSUHVFULEHURUGLVSHQVHURIDQRSLRLGIRULQGLYLGXDORXWSDWLHQWXVDJHVKDOO
DFFHVVDQGUHYLHZWKH3'03DVQHFHVVDU\LQWKHSUHVFULEHU
VRUGLVSHQVHU
VSURIHVVLRQDO
MXGJPHQW,IWKHGLVSHQVHU
VDFFHVVDQGUHYLHZVXJJHVWWKDWWKHLQGLYLGXDOVHHNLQJDQ
6HVVLRQ/DZ 3UHVFULSWLRQ'UXJ
8WDK +% RSLRLGPD\EHREWDLQLQJRSLRLGVLQTXDQWLWLHVRUIUHTXHQFLHVLQFRQVLVWHQWZLWKJHQHUDOO\
&KDSWHU $EXVH$PHQGPHQWV
UHFRJQL]HGVWDQGDUGVWKHGLVSHQVHUVKDOOUHDVRQDEO\DWWHPSWWRFRQWDFWWKHSUHVFULEHUWR
REWDLQWKHSUHVFULEHU
VLQIRUPHGFXUUHQWDQGSURIHVVLRQDOGHFLVLRQUHJDUGLQJZKHWKHUWKH
SUHVFULEHGRSLRLGLVPHGLFDOO\MXVWLILHGQRWZLWKVWDQGLQJWKHUHVXOWVRIWKH3'03VHDUFK
$OORZVDQDGYDQFHGSUDFWLFHUHJLVWHUHGQXUVHWRSUHVFULEHD6FKHGXOH,,FRQWUROOHG
6HVVLRQ/DZ 1XUVH3UDFWLWLRQHU VXEVWDQFHZLWKRXWDFRQVXOWDWLRQDQGUHIHUUDOSODQXQGHUFHUWDLQFLUFXPVWDQFHV
8WDK 6%
&KDSWHU $PHQGPHQWV 5HTXLUHPHQWVLQFOXGH\HDUVRUKRXUVRIH[SHULHQFHRQJRLQJ3'03FKHFNVDQG
DGKHUHQFHWRDSSURSULDWHJXLGHOLQHV
6% &RQWUROOHG
6HVVLRQ/DZ 'HVFULEHVWKHFLUFXPVWDQFHVXQGHUZKLFKSUREDWLRQDQGSDUROHRIILFHUVPD\DFFHVV
8WDK 6SHFLDO 6XEVWDQFH'DWDEDVH
&KDSWHU LQIRUPDWLRQIURPWKHFRQWUROOHGVXEVWDQFHGDWDEDVHZLWKRXWDZDUUDQW
6HVVLRQ 0RGLILFDWLRQV
&ODULILHVZKRPD\EHDXVHURIWKH3'036HWVIRUWKUXOHVUHJDUGLQJWKHDYDLODELOLW\RI
I$FFHVV 3'03GDWDDQGHOHFWURQLFGDWDV\VWHPV6SHFLILHVWKDWWKH'LYLVLRQVKDOOPDNHUXOHV
'LYLVLRQRI
WRRSLRLG VSHFLI\LQJLDQHOHFWURQLFGDWDV\VWHP
V$DOORZDEOHDFFHVVWRDQGXVHRIRSLRLG
2FFXSDWLRQDO
,PSOHPHQWLQJ SUHVFULSWLRQ SUHVFULSWLRQLQIRUPDWLRQLQWKHGDWDEDVHDQG%PLQLPXPDFWLRQVWKDWPXVWEHWDNHQWR
8WDK DQG
+% LQIRUPDWLRQYLDDQ HQVXUHWKDWRSLRLGSUHVFULSWLRQLQIRUPDWLRQDFFHVVHGIURPWKHGDWDEDVHLVSURWHFWHGIURP
3URIHVVLRQDO
HOHFWURQLFGDWD LQDSSURSULDWHGLVFORVXUHRUXVHDQGLLDQ('6XVHU
V$DOORZDEOHDFFHVVWRRSLRLG
/LFHQVLQJ
V\VWHP SUHVFULSWLRQLQIRUPDWLRQLQWKHGDWDEDVHYLDDQHOHFWURQLFGDWDV\VWHPDQG%DOORZDEOH
XVHRIWKHLQIRUPDWLRQ
7KLVDFWDGGVWKHDSSURSULDWHSUHVFULSWLRQRIFRQWUROOHGVXEVWDQFHVWRWUHDWDFXWHSDLQWR
WKHWRSLFVRQZKLFKSURIHVVLRQDOOLFHQVLQJDXWKRULWLHVPXVWGHYHORSHYLGHQFHEDVHG
VWDQGDUGVDQGUHTXLUHVWKHOLFHQVLQJDXWKRULWLHVWRVXEPLWWKHLUVWDQGDUGVWRWKH
&RPPLVVLRQHURI+HDOWKWRUHYLHZWKH3'03DQGLQFUHDVHVWKHIUHTXHQF\ZLWKZKLFK
$Q$FWUHODWLQJWR GLVSHQVHUVPXVWUHSRUWWRWKH3'03IURPDWOHDVWRQFHDZHHNWRGDLO\7KHDFWFUHDWHV
9HUPRQW $FW 6 &RPEDWLQJ2SLRLG WKHPHPEHU&RQWUROOHG6XEVWDQFHVDQG3DLQ0DQDJHPHQW$GYLVRU\&RXQFLODVWKH
$EXVHLQ9HUPRQW VXFFHVVRUWRWKH8QLILHG3DLQ0DQDJHPHQW6\VWHP$GYLVRU\&RXQFLODQGRWKHUDGYLVRU\
JURXSV,WGLUHFWVWKH&RPPLVVLRQHURI+HDOWKWRDGRSWUXOHVRQSUHVFULELQJRSLRLGVDIWHU
FRQVXOWLQJZLWKWKH&RXQFLOZKLFKPD\LQFOXGHQXPEHUDQGWLPHOLPLWVRQSLOOV
SUHVFULEHGLQFOXGLQJDPD[LPXPQXPEHURISLOOVWREHSUHVFULEHGIROORZLQJPLQRU
PHGLFDOSURFHGXUHV5HTXLUHVKHDOWKFDUHSURIHVVLRQDOVZKRKDYHDIHGHUDO'UXJ
(QIRUFHPHQW$JHQF\QXPEHURUZKRGLVSHQVHFRQWUROOHGVXEVWDQFHVWRFRPSOHWHDWRWDO
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
RIDWOHDVWWZRKRXUVRIFRQWLQXLQJHGXFDWLRQIRUHDFKOLFHQVLQJSHULRGRQWRSLFVUHODWHG
WRSUHYHQWLQJRSLRLGDEXVHPLVXVHDQGGLYHUVLRQ5HTXLUHVWKH&RPPLVVLRQHURI+HDOWK
WRFRQYHQHPHGLFDOHGXFDWRUVWRGHYHORSFXUULFXODUPDWHULDOVWRHQVXUHWKDWVWXGHQWVLQ
PHGLFDOHGXFDWLRQSURJUDPVOHDUQVDIHSUHVFULELQJSUDFWLFHVDQGVFUHHQLQJSUHYHQWLRQ
DQGLQWHUYHQWLRQIRUFDVHVRISUHVFULSWLRQGUXJPLVXVHDQGDEXVHDQGGLUHFWVWKH
'HSDUWPHQWRI+HDOWKWRHVWDEOLVKDFRPPXQLW\JUDQWSURJUDPWRVXSSRUWORFDORSLRLG
SUHYHQWLRQVWUDWHJLHV7KHDFWLQFUHDVHVDIHHLPSRVHGRQSKDUPDFHXWLFDOPDQXIDFWXUHUV
ZKRVHGUXJVDUHSDLGIRUE\'9+$IURPSHUFHQWWRSHUFHQWRIDQQXDO'9+$
GUXJVSHQGLQJDQGDGGVWRWKHSHUPLVVLEOHXVHVRIWKH(YLGHQFH%DVHG(GXFDWLRQDQG
$GYHUWLVLQJ)XQG7KHDFWUHTXLUHVWKH'HSDUWPHQWRI+HDOWKWRHVWDEOLVKDQGPDLQWDLQD
VWDWHZLGHXQXVHGSUHVFULSWLRQGUXJGLVSRVDOSURJUDPDQGGLUHFWV%OXH&URVV%OXH6KLHOG
RI9HUPRQWWRHYDOXDWHWKHHYLGHQFHVXSSRUWLQJWKHXVHRIDFXSXQFWXUHWRWUHDWSDLQDQG
ZKHWKHULWVSODQVVKRXOGSURYLGHFRYHUDJHIRUDFXSXQFWXUHVHUYLFHV,WDOVRFUHDWHVDSLORW
SURMHFWWRRIIHUDFXSXQFWXUHVHUYLFHVWR0HGLFDLGHOLJLEOH9HUPRQWHUVZLWKDGLDJQRVLVRI
FKURQLFSDLQ
9HUPRQW0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF
9HUPRQW
9HUPRQW QD QD 3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\
0HGLFDLG
-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
3UHVFULSWLRQ
0RQLWRULQJ 5HTXLUHVDSUHVFULEHUWRFKHFNWKH3'03XSRQLQLWLDWLQJDQHZFRXUVHRIWUHDWPHQWWKDW
+%6% 3URJUDP LQFOXGHVRSLRLGVZKHQWKDWWUHDWPHQWLVH[SHFWHGWRODVWPRUHWKDQGD\V(OLPLQDWHV
9LUJLQLD &KDSWHU
5HTXLUHPHQWVRI WKHUHTXLUHPHQWWRFKHFNWKH3'03ZKHQSUHVFULELQJDEHQ]RGLD]HSLQH$OORZV
3UHVFULEHUVRI SUHVFULEHUVWRKDYHGHOHJDWHVDFFHVVWKH3'03RQWKHLUEHKDOI
2SLRLGV
73$FHUWLILHG
2SWRPHWULVWV 3URYLGHVWKDWD73$FHUWLILHGRSWRPHWULVWZKRLVDXWKRUL]HGWRSUHVFULEHFRQWUROOHG
3UHVFULSWLRQRI VXEVWDQFHVPD\LVVXHSUHVFULSWLRQVIRURUSURYLGHPDQXIDFWXUHU
VVDPSOHVRIDQDOJHVLFV
9LUJLQLD &KDSWHU +%
&HUWDLQ6FKHGXOH,, LQFOXGHGRQ6FKHGXOH,,FRQVLVWLQJRIK\GURFRGRQHLQFRPELQDWLRQZLWKDFHWDPLQRSKHQ
&RQWUROOHG WRKLVSDWLHQWV
6XEVWDQFHV
'LUHFWVWKH'LUHFWRURIWKH'HSDUWPHQWRI+HDOWK3URIHVVLRQVWRGHYHORSLQFRQVXOWDWLRQ
3UHVFULSWLRQ
ZLWKDQDGYLVRU\SDQHOWKDWVKDOOLQFOXGHUHSUHVHQWDWLYHVRIWKH%RDUGVRI0HGLFLQHDQG
0RQLWRULQJ
3KDUPDF\FULWHULDIRULQGLFDWRUVRIXQXVXDOSDWWHUQVRISUHVFULELQJRUGLVSHQVLQJRI
3URJUDPLQGLFDWRUV
9LUJLQLD &KDSWHU +% FRYHUHGVXEVWDQFHVE\SUHVFULEHUVRUGLVSHQVHUV$XWKRUL]HVWKH'LUHFWRUWRGLVFORVH
RIPLVXVH
LQIRUPDWLRQDERXWWKHXQXVXDOSUHVFULELQJRUGLVSHQVLQJRIDFRYHUHGVXEVWDQFHE\DQ
GLVFORVXUHRI
LQGLYLGXDOSUHVFULEHURUGLVSHQVHUWRWKH(QIRUFHPHQW'LYLVLRQRIWKH'HSDUWPHQWRI
LQIRUPDWLRQ
+HDOWK3URIHVVLRQV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
$XWKRUL]HVWKH'LUHFWRURIWKH'HSDUWPHQWRI+HDOWK3URIHVVLRQVWRGLVFORVHLQIRUPDWLRQ
WRWKH%RDUGRI0HGLFLQHDERXWSUHVFULEHUVZKRPHHWDFHUWDLQWKUHVKROGIRUSUHVFULELQJ
3UHVFULEHUVRI
FRYHUHGVXEVWDQFHVIRUWKHSXUSRVHRIUHTXLULQJUHOHYDQWFRQWLQXLQJHGXFDWLRQ'LUHFWV
FRYHUHGVXEVWDQFHV
9LUJLQLD &KDSWHU +% WKH%RDUGRI0HGLFLQHWRUHTXLUHSUHVFULEHUVLGHQWLILHGE\WKH'LUHFWRURIWKH'HSDUWPHQW
FRQWLQXLQJ
RI+HDOWK3URIHVVLRQVWRFRPSOHWHWZRKRXUVRIFRQWLQXLQJHGXFDWLRQLQHDFKELHQQLXP
HGXFDWLRQ
RQWRSLFVUHODWHGWRSDLQPDQDJHPHQWWKHUHVSRQVLEOHSUHVFULELQJRIFRYHUHGVXEVWDQFHV
DQGWKHGLDJQRVLVDQGPDQDJHPHQWRIDGGLFWLRQ
3URYLGHVWKDWWKH'LUHFWRURIWKH'HSDUWPHQWRI+HDOWK3URIHVVLRQVPD\GLVFORVH
3UHVFULSWLRQ LQIRUPDWLRQLQWKHSRVVHVVLRQRIWKH3'03DERXWDVSHFLILFUHFLSLHQWZKRLVDPHPEHURI
0RQLWRULQJ D9LUJLQLD0HGLFDLGPDQDJHGFDUHSURJUDPWRDSK\VLFLDQRUSKDUPDFLVWOLFHQVHGLQWKH
+%6
9LUJLQLD &KDSWHU 3URJUDPGLVFORVXUH &RPPRQZHDOWKDQGHPSOR\HGE\WKH9LUJLQLD0HGLFDLGPDQDJHGFDUHSURJUDPWR
RIFHUWDLQ GHWHUPLQHHOLJLELOLW\IRUDQGWRPDQDJHWKHFDUHRIWKHVSHFLILFUHFLSLHQWLQD3DWLHQW
LQIRUPDWLRQ 8WLOL]DWLRQ0DQDJHPHQW6DIHW\RUVLPLODUSURJUDP5HTXLUHVWKH3'03DGYLVRU\
FRPPLWWHHWRSURYLGHJXLGDQFHWRWKH'LUHFWRUUHJDUGLQJVXFKGLVFORVXUHV
3UHVFULSWLRQ
0RQLWRULQJ
5HSRUWVE\GLVSHQVHUVWRWKH3'03VKDOOEHPDGHZLWKLQKRXUVRUWKHGLVSHQVHU
VQH[W
3URJUDPUHSRUWVE\
9LUJLQLD &KDSWHU 6% EXVLQHVVGD\ZKLFKHYHUFRPHVODWHU2XWOLQHVWKHSHUVRQVDQGHQWLWLHVWRZKRPWKH
GLVSHQVHUVVKDOOEH
'LUHFWRURIWKH'HSDUWPHQWRI+HDOWK3URIHVVLRQVPD\GLVFORVH3'03GDWD
PDGHZLWKLQ
KRXUVRUQH[WGD\
9LUJLQLD
9LUJLQLD0HGLFDLGKDVDGRSWHGWKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF
'HSDUWPHQWRI
3DLQLQWKHLU)HHIRU6HUYLFHSURJUDP8SGDWHVZHUHDOVRPDGHWRRSLRLGTXDQWLW\OLPLWV
0HGLFDO
9LUJLQLD QD QD SULRUDXWKRUL]DWLRQIRURSLRLGVRSLRLGFOLQLFDOFULWHULDRSLRLGVWHSWKHUDS\UHTXLUHPHQWV
$VVLVWDQFH
DQGUHTXLUHGXVHRIWKHSUHVFULSWLRQPRQLWRULQJSURJUDP$FFRUGLQJWRDVXUYH\
6HUYLFHV
DGPLQLVWHUHGE\WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
0HGLFDLG
3UHVFULSWLRQ
$OORZV3'03GDWDWREHSURYLGHGWRDKHDOWKFDUHIDFLOLW\RUHQWLW\IRUWKHSXUSRVHRI
0RQLWRULQJ3URJUDP
:DVKLQJWRQ &KDSWHU +% SURYLGLQJPHGLFDORUSKDUPDFHXWLFDOFDUHWRWKHSDWLHQWVRIWKHIDFLOLW\VXEMHFWWRFHUWDLQ
'DWD$FFHVV
UHTXLUHPHQWV
(OLJLELOLW\
3UDFWLFHRI
,QSDUWPDNHVDPHQGPHQWVWRWKHODZUHODWLQJWRFRQWUROOHGVXEVWDQFHSUHVFULSWLRQVLQ
:DVKLQJWRQ &KDSWHU 6% 3KDUPDF\/RQJ
ORQJWHUPFDUHVHWWLQJV
7HUP&DUH6HWWLQJV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
7KHVWDWH$JHQF\0HGLFDO'LUHFWRUV*URXS$0'*VKDOOZRUNZLWKWKH%UHH
&ROODERUDWLYHDKHDOWKFDUHLPSURYHPHQWSDUWQHUVKLS7ULEDOJRYHUQPHQWVERDUGVDQG
FRPPLVVLRQVSURIHVVLRQDODVVRFLDWLRQVKHDOWKFDUHV\VWHPVLQVXUHUVWHDFKLQJ
$GGUHVVLQJWKH
([HFXWLYH LQVWLWXWLRQVDQGRWKHUVWRFRQVLGHUDPHQGPHQWVWRWKHVWDWHSDLQJXLGHOLQHVDQGRWKHU
:DVKLQJWRQ QD 2SLRLG8VH3XEOLF
2UGHU WUDLQLQJDQGSROLF\PDWHULDOVFRQVLVWHQWZLWKWKH$0'*DQGWKH&'&RSLRLG
+HDOWK&ULVLV
JXLGHOLQHVWRUHGXFHXQQHFHVVDU\SUHVFULELQJIRUDFXWHSDLQFRQGLWLRQVIRUWKHJHQHUDO
SRSXODWLRQHVSHFLDOO\DGROHVFHQWV,QFOXGHVRWKHUSURYLVLRQVUHODWHGWRVXEVWDQFHXVH
GLVRUGHUHGXFDWLRQRI\RXWKPRUELGLW\DQGPRUWDOLW\GDWDHWF
:DVKLQJWRQ
6WDWH+HDOWK
:DVKLQJWRQ0HGLFDLGXSGDWHGUHTXLUHPHQWVUHODWHGWRWKHSULRUDXWKRUL]DWLRQRIRSLRLGV
&DUH$XWKRULW\
:DVKLQJWRQ QD QD LQWKHLU)HHIRU6HUYLFHSURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\
0HGLFDLG
WKH+HQU\-.DLVHU)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
3XEOLF
(PSOR\HHV
3URYLGLQJLQVXUDQFH
FRYHUDEXVH
:HVW9LUJLQLD &KDSWHU +% 3URYLGHVIRULQVXUDQFHFRYHUDJHRIDEXVHGHWHUUHQWRSLRLGDQDOJHVLFGUXJV
GHWHUUHQWRSLRLG
DQDOJHVLFGUXJV
&ODULI\LQJWKH
'LUHFWVWKHSURPXOJDWLRQRIJRYHUQLQJWKHHOLJLELOLW\DQGH[WHQWWRZKLFKDQDGYDQFHG
UHTXLUHPHQWVIRUD
SUDFWLFHUHJLVWHUHGQXUVHPD\SUHVFULEHGUXJV6XFKUXOHVVKDOOSURYLGHDWDPLQLPXPD
OLFHQVHWRSUDFWLFHDV
VWDWHIRUPXODU\FODVVLI\LQJWKRVHFDWHJRULHVRIGUXJVZKLFKVKDOOQRWEHSUHVFULEHGE\
DQDGYDQFHGSUDFWLFH
:HVW9LUJLQLD &KDSWHU +% DGYDQFHGSUDFWLFHUHJLVWHUHGQXUVHLQFOXGLQJEXWQRWOLPLWHGWR6FKHGXOHV,DQG,,RIWKH
UHJLVWHUHGQXUVHDQG
8QLIRUP&RQWUROOHG6XEVWDQFHV$FWDQWLQHRSODVWLFVUDGLRSKDUPDFHXWLFDOVDQGJHQHUDO
H[SDQGLQJ
DQHVWKHWLFV'UXJVOLVWHGXQGHU6FKHGXOH,,,VKDOOEHOLPLWHGWRDWKLUW\GD\VXSSO\
SUHVFULSWLYH
ZLWKRXWUHILOO
DXWKRULW\
&ODULI\LQJWKDW
RSWRPHWULVWVPD\
FRQWLQXHWRH[HUFLVH
WKHVDPH 2SWRPHWULVWVPD\QRWXVH6FKHGXOH,,FRQWUROOHGVXEVWDQFHV+RZHYHUDQRUDO
:HVW9LUJLQLD &KDSWHU +% SUHVFULSWLYH SKDUPDFHXWLFDOFHUWLILHGOLFHQVHHPD\SUHVFULEHK\GURFRGRQHDQGK\GURFRGRQH
DXWKRULW\ZKLFKWKH\ FRQWDLQLQJGUXJVIRUDGXUDWLRQRIQRPRUHWKDQWKUHHGD\V
SRVVHVVHGSULRUWR
K\GURFRGRQHEHLQJ
UHFODVVLILHG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
$PHQGVDQGUHHQDFWVWKH&KURQLF3DLQ&OLQLF/LFHQVLQJ$FWUHODWLQJWRWKHUHJXODWLRQRI
&KURQLF3DLQ&OLQLF FKURQLFSDLQFOLQLFVXSGDWLQJGHILQLWLRQVGHOHWLQJDQH[HPSWLRQIRUDIILOLDWLRQZLWKD
:HVW9LUJLQLD &KDSWHU +%
/LFHQVLQJ$FW PHGLFDOVFKRRODQGFODULI\LQJGXHSURFHVVFRQFHUQVUHJDUGLQJWKHSURFHVVIRUKHDULQJ
QRWLFHVXSRQDSSHDO
,QUHOHYDQWSDUWDXWKRUL]HVWKH'HSDUWPHQWRI+HDOWKDQG+XPDQ5HVRXUFHVWR
SURPXOJDWHDOHJLVODWLYHUXOHUHJDUGLQJFKURQLFSDLQPDQDJHPHQWOLFHQVXUHZKLFK
$XWKRUL]LQJ'++5 H[HPSWVWHUPLQDOSDWLHQWVIURPSRUWLRQVRIWKHUXOHV)XUWKHUDPHQGVH[LVWLQJUXOHVWR
:HVW9LUJLQLD &KDSWHU 6% WRSURPXOJDWH UHTXLUHWKDWDSDLQFOLQLFVKDOOQRWRIIHUDERXQW\PRQHWDU\RUHTXLSPHQWRUPHUFKDQGLVH
OHJLVODWLYHUXOHV UHZDUGRUIUHHVHUYLFHVIRULQGLYLGXDOVLQH[FKDQJHIRUUHFUXLWPHQWRIQHZSDWLHQWVLQWR
WKHFOLQLF)XUWKHUDSDLQFOLQLFVKDOOQRWUHFUXLWQHZSDWLHQWVIRUWKHSXUSRVHRI
DWWHPSWLQJWRFLUFXPYHQWWKHOLFHQVXUHUHTXLUHPHQWVRIWKLVUXOH
2IILFHRIWKH
$WWRUQH\
*XLGHOLQHVEHVWSUDFWLFHVLQWHQGHGIRUXWLOL]LQJ:HVW9LUJLQLD¶V&RQWUROOHG6XEVWDQFH
*HQHUDO %HVW3UDFWLFHVIRU
0RQLWRULQJ3URJUDPUHGXFLQJULVNRIRSLRLGPLVXVHHQVXULQJWKDWWKH
:HVW9LUJLQLD &RQVXPHU QD 3UHVFULELQJ2SLRLGV
SUHVFULSWLRQPHGLFDWLRQGRVHDQGTXDQWLW\LVVDIHDQGDSSURSULDWHDQGLQFRUSRUDWLQJ
3URWHFWLRQDQG LQ:HVW9LUJLQLD
QDOR[RQHLQWRRSLRLGWUHDWPHQWGLVFXVVLRQV
$QWLWUXVW
'LYLVLRQ
:HVW9LUJLQLD0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
:HVW9LUJLQLD
:HVW9LUJLQLD QD QD SURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU
0HGLFDLG
)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
5HSRUWLQJ
GLVFORVXUHDQG
SUDFWLWLRQHUUHYLHZ
UHTXLUHPHQWVXQGHU
WKHSUHVFULSWLRQGUXJ
PRQLWRULQJSURJUDP 'LVSHQVHUVPXVWUHSRUWWRWKH3'03E\WKHQH[WEXVLQHVVGD\6SHFLILHVWKHSHUVRQVWR
:LVFRQVLQ $FW $%
SURYLGLQJDQ ZKRP3'03UHFRUGVPD\EHGLVFORVHGLQFOXGLQJWRUHOHYDQWODZHQIRUFHPHQWDJHQFLHV
H[HPSWLRQIURP
HPHUJHQF\UXOH
SURFHGXUHVDQG
JUDQWLQJUXOH
PDNLQJDXWKRULW\
'XW\RIODZ 5HTXLUHVODZHQIRUFHPHQWRIILFHUVWRUHSRUWFRQWUROOHGVXEVWDQFHYLRODWLRQVRSLRLG
:LVFRQVLQ $FW $% HQIRUFHPHQWRIILFHUV UHODWHGGUXJRYHUGRVHVRUGHDWKVDQGUHSRUWVRIVWROHQSUHVFULSWLRQGUXJVWRWKH3'03
WRUHSRUWWRWKH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
3UHVFULSWLRQ'UXJ
0RQLWRULQJ3URJUDP
FRQWUROOHGVXEVWDQFH
YLRODWLRQVRSLRLG
UHODWHGGUXJ
RYHUGRVHVRUGHDWKV
DQGUHSRUWVRIVWROHQ
SUHVFULSWLRQGUXJV
3DLQFOLQLF
FHUWLILFDWLRQDQG
UHTXLUHPHQWV 'HILQHV³3DLQ&OLQLF´DQGVHWVUHTXLUHPHQWVIRUWKHRSHUDWLRQRIVXFKFOLQLFV$GRSWV
:LVFRQVLQ $FW $% JUDQWLQJUXOH UHTXLUHPHQWVUHODWHGWRPHGLFDOGLUHFWRUVSD\PHQWPHWKRGVGLUHFWGLVSHQVLQJDQG
PDNLQJDXWKRULW\ PXOWLSOHORFDWLRQV
DQGSURYLGLQJD
SHQDOW\
5HSRUWLQJE\
WUHDWPHQWSURJUDPV
XVLQJPHWKDGRQH $GRSWVUHSRUWLQJUHTXLUHPHQWVE\WUHDWPHQWSURJUDPVXVLQJPHWKDGRQHLQFOXGLQJWKH
:LVFRQVLQ $FW $%
DQGUHTXLULQJUHYLHZ SURJUDP
VSODQIRUWDSHULQJLQGLYLGXDOVRIIPHWKDGRQHVWDIILQJUHTXLUHPHQWVDQGPRUH
RISUHVFULSWLRQGUXJ
PRQLWRULQJGDWDEDVH
*XLGHOLQHVIRU
SUHVFULELQJ
FRQWUROOHG
$OORZVWKHPHGLFDOH[DPLQLQJERDUGWKHSRGLDWU\DIILOLDWHGFUHGHQWLDOLQJERDUGWKH
VXEVWDQFHVDQGWKH
:LVFRQVLQ $FW $% ERDUGRIQXUVLQJWKHGHQWLVWU\H[DPLQLQJERDUGDQGWKHRSWRPHWU\ERDUGWRLVVXH
H[DPLQDWLRQ
JXLGHOLQHVUHJDUGLQJEHVWSUDFWLFHVLQSUHVFULELQJFRQWUROOHGVXEVWDQFHV
DXWKRULW\RIWKH
0HGLFDO([DPLQLQJ
%RDUG
5HYLHZDQG 5HTXLUHVWKH%RDUGWRFRQGXFWDUHYLHZRIWKH3'03WRHYDOXDWHWKHDFWXDORXWFRPHVRI
UHSRUWLQJ WKHSURJUDPFRPSDUHGZLWKSURMHFWHGRXWFRPHVLQFOXGLQJDQHYDOXDWLRQRIWKH
UHTXLUHPHQWVIRUWKH VDWLVIDFWLRQZLWKWKHSURJUDPRISKDUPDFLVWVSKDUPDFLHVSUDFWLWLRQHUVDQGRWKHUXVHUV
:LVFRQVLQ $FW $% DQGWKHSURJUDP
VLPSDFWRQUHIHUUDOVRIGLVSHQVHUVDQGSUHVFULEHUVWROLFHQVLQJ
3UHVFULSWLRQ'UXJ
0RQLWRULQJ ERDUGVIRUGLVFLSOLQHDQGWRODZHQIRUFHPHQWIRULQYHVWLJDWLRQSURVHFXWLRQ5HTXLUHVD
3URJUDP VHSDUDWHUHSRUWUHJDUGLQJWKHWUHQGVDQGFKDQJHVLQXVHRIPRQLWRUHGSUHVFULSWLRQGUXJV
ZLWKLQWKHVWDWHWKHQXPEHURISDUWLFLSDWLQJSUDFWLWLRQHUVWKHQXPEHURILQGLYLGXDOV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
(QDFWHG %LOO
-XULVGLFWLRQ $VRU%\ 1XPEHU 7LWOH +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
UHFHLYLQJSUHVFULSWLRQRUGHUVIURPRUPRUHSUDFWLWLRQHUVDQGRUSKDUPDFLHVZLWKLQDQ\
GD\SHULRGHWF
7KHERDUGVKDOOFRQGXFWDTXDUWHUO\UHYLHZRIWKH3'03WRHYDOXDWHWKHDFWXDORXWFRPHV
RIWKHSURJUDPFRPSDUHGZLWKSURMHFWHGRXWFRPHV7KHERDUG
VUHYLHZVKDOOLQFOXGHDQ
HYDOXDWLRQRIDOORIWKHIROORZLQJ7KHVDWLVIDFWLRQZLWKWKHSURJUDPRISKDUPDFLVWV
SKDUPDFLHVSUDFWLWLRQHUVDQGRWKHUXVHUVRIWKHSURJUDPDQG7KHSURJUDP
VLPSDFW
RQUHIHUUDOVRISKDUPDFLVWVSKDUPDFLHVDQGSUDFWLWLRQHUVWROLFHQVLQJRUUHJXODWRU\
ERDUGVIRUGLVFLSOLQHDQGWRODZHQIRUFHPHQWDJHQFLHVIRULQYHVWLJDWLRQDQGSRVVLEOH
SURVHFXWLRQ7KHERDUGVKDOOSURYLGHDUHSRUWWRWKHGHSDUWPHQWRIVDIHW\DQGSURIHVVLRQDO
VHUYLFHVWKDWLQFOXGHVDOORIWKHIROORZLQJD7KHUHVXOWVRIWKHERDUG
VUHYLHZXQGHUVXE
7KLVSDUDJUDSKGRHVQRWDSSO\DIWHU2FWREHUE$QDVVHVVPHQWRIWKH
WUHQGVDQGFKDQJHVLQWKHXVHRIPRQLWRUHGSUHVFULSWLRQGUXJVLQWKLVVWDWHF7KH
&KDSWHU 3UHVFULSWLRQ'UXJ QXPEHURISUDFWLWLRQHUVE\SURIHVVLRQDQGSKDUPDFLHVVXEPLWWLQJUHFRUGVWRWKHERDUG
:LVFRQVLQ QD
0RQLWRULQJ3URJUDP XQGHUWKHSURJUDPLQWKHSUHYLRXVTXDUWHUG$GHVFULSWLRQRIWKHQXPEHUIUHTXHQF\
DQGQDWXUHRIVXEPLVVLRQVE\ODZHQIRUFHPHQWDJHQFLHVXQGHUVDLQWKH
SUHYLRXVTXDUWHUH$GHVFULSWLRQRIWKHQXPEHUIUHTXHQF\DQGQDWXUHRIUHTXHVWV
PDGHLQWKHSUHYLRXVTXDUWHUIRUGLVFORVXUHRIUHFRUGVJHQHUDWHGXQGHUWKHSURJUDPI
7KHQXPEHURILQGLYLGXDOVUHFHLYLQJSUHVFULSWLRQRUGHUVIURPRUPRUHSUDFWLWLRQHUVRU
KDYLQJPRQLWRUHGSUHVFULSWLRQGUXJVGLVSHQVHGE\RUPRUHSKDUPDFLHVZLWKLQWKHVDPH
GD\SHULRGDWDQ\WLPHRYHUWKHFRXUVHRIWKHSURJUDPJ7KHQXPEHURILQGLYLGXDOV
UHFHLYLQJGDLO\PRUSKLQHPLOOLJUDPHTXLYDOHQWVRIWRPLOOLJUDPVWR
PLOOLJUDPVWRPLOOLJUDPVDQGRUPRUHPLOOLJUDPVLQWKHSUHYLRXVTXDUWHUDQG
K7KHQXPEHURILQGLYLGXDOVWRZKRPERWKRSLRLGVDQGEHQ]RGLD]HSLQHVZHUH
GLVSHQVHGZLWKLQWKHVDPHGD\SHULRGDWDQ\WLPHRYHUWKHFRXUVHRIWKHSURJUDP
:\RPLQJ0HGLFDLGPDGHXSGDWHVWRRSLRLGTXDQWLW\OLPLWVLQWKHLU)HHIRU6HUYLFH
:\RPLQJ
:\RPLQJ QD QD SURJUDPLQ$FFRUGLQJWRDVXUYH\DGPLQLVWHUHGE\WKH+HQU\-.DLVHU
0HGLFDLG
)DPLO\)RXQGDWLRQWRWKH6WDWH0HGLFDLG3URJUDPV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$SSHQGL[%6DPSOLQJRI3URSRVHGDQG3DVVHG2SLRLG3ROLFLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
6DPSOLQJRI3URSRVHGDQG3DVVHG2SLRLG3ROLFLHV
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
8QLWHG6WDWHV +56 -RKQ60F&DLQ +RXVH $ELOOWRDPHQGWKH&RQWUROOHG6XEVWDQFHV$FWWRHVWDEOLVKDGGLWLRQDOUHJLVWUDWLRQ
2SLRLG$GGLFWLRQ 5HIHUUHGWRWKH UHTXLUHPHQWVIRUSUHVFULEHUVRIRSLRLGVDQGIRURWKHUSXUSRVHV/LPLWVRSLRLGSUHVFULSWLRQV
3UHYHQWLRQ$FW 6XEFRPPLWWHHRQ IRUWKHLQLWLDOWUHDWPHQWRIDFXWHSDLQWRQRPRUHWKDQGD\V
&ULPH7HUURULVP
DQG+RPHODQG
6HFXULW\
8QLWHG6WDWHV 6 &KDQJLQJWKH 6HQDWH 7KH6HFUHWDU\RI++6DFWLQJWKURXJKWKH&RPPLVVLRQHURI)RRGDQG'UXJVVKDOODPHQG
&XOWXUHRIWKH)'$ 5HDGWZLFHUHIHUUHG WKHPLVVLRQVWDWHPHQWRIWKH)'$WRLQFOXGHWKHIROORZLQJVWDWHPHQW³7KH)'$LVDOVR
$FW WRWKH&RPPLWWHHRQ UHVSRQVLEOHIRUSURWHFWLQJWKHSXEOLFKHDOWKE\VWURQJO\FRQVLGHULQJWKHGDQJHURIDGGLFWLRQ
+HDOWK(GXFDWLRQ DQGRYHUGRVHGHDWKDVVRFLDWHGZLWKSUHVFULSWLRQRSLRLGPHGLFDWLRQVZKHQDSSURYLQJWKHVH
/DERUDQG3HQVLRQV PHGLFDWLRQVDQGZKHQUHJXODWLQJWKHPDQXIDFWXULQJPDUNHWLQJDQGGLVWULEXWLRQRIRSLRLG
PHGLFDWLRQV´
8QLWHG6WDWHV 6 )'$ 6HQDWH 7RHVWDEOLVKSURFHGXUHVUHJDUGLQJWKHDSSURYDORIRSLRLGGUXJVE\WKH)'$%HIRUH
$FFRXQWDELOLW\IRU 5HDGWZLFHDQG DSSURYLQJDQ\RSLRLGDJDLQVWWKHUHFRPPHQGDWLRQRIWKHDGYLVRU\FRPPLWWHHWKH)'$
3XEOLF6DIHW\$FW UHIHUUHGWRWKH PXVWUHSRUWWR&RQJUHVVRQPHGLFDODQGVFLHQWLILFHYLGHQFHUHJDUGLQJSDWLHQWVDIHW\WKDW
&RPPLWWHHRQ FOHDUO\VXSSRUWVWKH&RPPLVVLRQHU
VGHFLVLRQWRDSSURYHWKHRSLRLGGUXJDJDLQVWWKH
+HDOWK(GXFDWLRQ UHFRPPHQGDWLRQRIWKHDGYLVRU\FRPPLWWHHDQGDGLVFORVXUHRIDQ\SRWHQWLDOFRQIOLFWV
/DERUDQG3HQVLRQV RILQWHUHVWWKDWPD\H[LVWUHJDUGLQJDQ\RIILFLDORIWKH)RRGDQG'UXJ$GPLQLVWUDWLRQZKR
ZDVLQYROYHGLQWKHGHFLVLRQWRDSSURYHWKHGUXJSULRUWRWKH&RPPLVVLRQHU
VILQDOGHFLVLRQ
XQGHUVXEVHFWLRQ6XFKGUXJVKDOOQRWEHLQWURGXFHGRUGHOLYHUHGIRULQWURGXFWLRQLQWR
LQWHUVWDWHFRPPHUFHXQWLOVXFKUHSRUWKDVEHHQVXEPLWWHG
8QLWHG6WDWHV 6 3URWHFWLQJ 6HQDWH 7RUHTXLUHWKH)RRGDQG'UXJ$GPLQLVWUDWLRQWRUHYRNHWKHDSSURYDORIRQHRSLRLGSDLQ
$PHULFDQVIURP 5HDGWZLFHUHIHUUHG PHGLFDWLRQIRUHDFKQHZRSLRLGSDLQPHGLFDWLRQDSSURYHG
'DQJHURXV2SLRLGV WR&RPPLWWHHRQ
$FW +HDOWK(GXFDWLRQ
/DERUDQG3HQVLRQV
8QLWHG6WDWHV 6 '($(QIRUFHPHQW 6HQDWH 7KLVELOOPRGLILHVHQIRUFHPHQWDXWKRULWLHVRIWKH'($,WPRGLILHVWKHUHTXLUHGHOHPHQWVRI
DQG$XWKRULW\$FW 5HDGWZLFHDQG DQRUGHUWRVKRZFDXVHLVVXHGE\WKH'($EHIRUHLWGHQLHVUHYRNHVRUVXVSHQGVD
RI UHIHUUHGWRWKH UHJLVWUDWLRQIRUD&6$YLRODWLRQ6SHFLILFDOO\WKHELOOHOLPLQDWHVWKHUHTXLUHPHQWIRUDQ
&RPPLWWHHRQWKH RUGHUWRVKRZFDXVHWRQRWLI\WKHUHJLVWUDQWRIWKHRSSRUWXQLW\WRVXEPLWDFRUUHFWLYHDFWLRQ
-XGLFLDU\ SODQ$GGLWLRQDOO\WKHELOOPRGLILHVWKHVWDQGDUGRIUHYLHZIRUDQLPPHGLDWHVXVSHQVLRQ
RUGHU&XUUHQWO\WKH'($PD\LPPHGLDWHO\VXVSHQGWKHUHJLVWUDWLRQRIDFRQWUROOHG
VXEVWDQFHVPDQXIDFWXUHUGLVWULEXWRURUGLVSHQVHUWRSUHYHQWLPPLQHQWGDQJHUWRSXEOLF
KHDOWKDQGVDIHW\7KLVELOOORZHUVWKHVWDQGDUGIRUGHWHUPLQLQJLPPLQHQWGDQJHUWRWKH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
SXEOLFKHDOWKDQGVDIHW\IURPVXEVWDQWLDOOLNHOLKRRGRIDQLPPHGLDWHWKUHDWRIKDUPWR
SUREDEOHFDXVHWKDWKDUPZLOORFFXU
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
8QLWHG6WDWHV QD $3UHVFULEHU¶V &HQWHUVIRU ,PSOHPHQWVVDIHW\DOHUWVDWWKHSKDUPDF\IRU3DUW'EHQHILFLDULHVZKRDUHILOOLQJWKHLULQLWLDO
*XLGHWRWKH1HZ 0HGLFDUHDQG RSLRLGSUHVFULSWLRQRUZKRDUHUHFHLYLQJKLJKGRVHVRISUHVFULSWLRQRSLRLGV0HGLFDUHGUXJ
0HGLFDUH3DUW' 0HGLFDLG6HUYLFHV SODQVZLOOSHUIRUPDGGLWLRQDOVDIHW\FKHFNVE\VHQGLQJSKDUPDFLHVDQDOHUWWRUHYLHZFHUWDLQ
2SLRLG LPSOHPHQWHG RSLRLGSUHVFULSWLRQVEHIRUHWKH\DUHILOOHG6DIHW\DOHUWVPD\FRYHU3RVVLEOHXQVDIH
2YHUXWLOL]DWLRQ DPRXQWVRIRSLRLGV7KHSKDUPDFLVWRU0HGLFDUHGUXJSODQPD\QHHGWRSHUIRUPDFORVHU
3ROLFLHVIRU VDIHW\UHYLHZRIWKHSUHVFULSWLRQZLWKWKHSUHVFULELQJGRFWRULID3DUW'EHQHILFLDU\UHFHLYHV
RSLRLGSUHVFULSWLRQVWKDWH[FHHGDFHUWDLQDPRXQW)LUVWSUHVFULSWLRQILOOVIRURSLRLGV
3DUW'EHQHILFLDULHVPD\EHOLPLWHGWRDGD\VXSSO\RUOHVVIRUDFXWHSDLQLIWKH\KDYHQ¶W
UHFHQWO\WDNHQRSLRLGVVXFKDVZLWKLQWKHSDVWGD\V7KHOLPLWLVEDVHGRQPHGLFDOEHVW
SUDFWLFHVWKDWVKRZWKDWWKHULVNRIGHYHORSLQJDQRSLRLGXVHGLVRUGHULQFUHDVHVDIWHUGD\V
RIXVH7KLVSROLF\LVQRWLQWHQGHGIRUFXUUHQWXVHUVRISUHVFULSWLRQRSLRLGVRU8VHRI
RSLRLGVDQGEHQ]RGLD]HSLQHVDWWKHVDPHWLPH7KHVHPHGLFDWLRQVFDQEHGDQJHURXVZKHQ
WDNHQLQFRPELQDWLRQ,IWKHSUHVFULSWLRQFDQ¶WEHILOOHGDVZULWWHQLQFOXGLQJWKHIXOODPRXQW
RQWKHSUHVFULSWLRQWKHSKDUPDFLVWZLOOJLYHWKHEHQHILFLDU\DQRWLFHH[SODLQLQJKRZWKH\RU
WKHLUGRFWRUFDQFRQWDFWWKHSODQWRDVNIRUD³FRYHUDJHGHWHUPLQDWLRQ´DGHFLVLRQDERXW
ZKHWKHURUQRWWKHSODQZLOOFRYHUWKHGUXJ7KHEHQHILFLDU\RUWKHLUGRFWRUPD\DOVRDVN
WKH3DUW'SODQIRUDQH[FHSWLRQWRLWVUXOHVEHIRUHWKHEHQHILFLDU\JRHVWRWKHSKDUPDF\VR
WKH\NQRZLQDGYDQFHZKHWKHUWKHSUHVFULSWLRQLVFRYHUHG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
$ODVND QD 0HGLFDWLRQ3ULRU ,PSOHPHQWHG &RQWDLQVLQIRUPDWLRQUHJDUGLQJ0D[XQLWVGD\VDQG00(GD\DQGSULRUDXWKRUL]DWLRQ
$XWKRUL]DWLRQ $ODVND'HSDUWPHQW LQIRUPDWLRQIRURSLRLGGUXJVFRYHUHGE\$ODVND0HGLFDLG
0D[LPXP8QLWV RI+HDOWKDQG6RFLDO
0HGLFDWLRQ/LVW 6HUYLFHV'LYLVLRQ
HII RI+HDOWK&DUH
6HUYLFHV
$UL]RQD +% (OHFWURQLF 6LJQHGE\ ([WHQGVWKHHOHFWURQLFSUHVFULSWLRQRUGHUGHDGOLQHIRUDOOFRXQWLHVXQWLO-DQXDU\
3UHVFULELQJRI *RYHUQRU&KDSWHU 5HTXLUHVWKHXVHRIHOHFWURQLFSUHVFULSWLRQVIRU6FKHGXOH,,FRQWUROOHGVXEVWDQFHVLQFOXGLQJ
&RQWUROOHG RSLRLGVZLWKH[FHSWLRQV
6XEVWDQFHV
$UL]RQD QD QD ,PSOHPHQWHG 5HTXLUHVDQDGPLQLVWUDWRURIDKHDOWKFDUHLQVWLWXWLRQZKHUHRSLRLGVDUHSUHVFULEHGRU
$UL]RQD'HSDUWPHQW RUGHUHGDVSDUWRIWUHDWPHQWVKDOOHVWDEOLVKGRFXPHQWDQGLPSOHPHQWSROLFLHVDQG
RI+HDOWK6HUYLFHV SURFHGXUHVIRUSUHVFULELQJRURUGHULQJDQRSLRLGDVSDUWRIWUHDWPHQWWKDWLQFOXGHVKRZ
HIIHFWLYH-XO\ ZKHQDQGE\ZKRPDSDWLHQW¶VSURILOHLQWKH3'03LVUHYLHZHGDQGLIDSSOLFDEOHLQFOXGH
GRFXPHQWLQJDGLVSHQVHGRSLRLGLQWKH3'03
&DOLIRUQLD $% &RQWUROOHG 6LJQHGE\ 3UHYLRXVO\H[LVWLQJODZUHTXLUHVSUHVFULSWLRQIRUPVIRUFRQWUROOHGVXEVWDQFHSUHVFULSWLRQVWR
VXEVWDQFHV *RYHUQRU&KDSWHU EHREWDLQHGIURPVHFXULW\SULQWHUVDSSURYHGE\WKHGHSDUWPHQWDQGIXUWKHUUHTXLUHVWKRVH
SUHVFULSWLRQV SUHVFULSWLRQIRUPVWREHSULQWHGZLWKVSHFLILHGIHDWXUHVLQFOXGLQJDXQLTXHO\VHULDOL]HG
QXPEHU7KLVELOOGHOD\VWKHUHTXLUHPHQWIRUWKRVHSUHVFULSWLRQIRUPVWRLQFOXGHDXQLTXHO\
VHULDOL]HGQXPEHUXQWLODGDWHGHWHUPLQHGE\WKH'HSDUWPHQWRI-XVWLFHWKDWLVQRODWHUWKDQ
-DQXDU\7KHELOOUHTXLUHVDPRQJRWKHUWKLQJVWKHVHULDOL]HGQXPEHUWREH
XWLOL]DEOHDVDEDUFRGHWKDWPD\EHVFDQQHGE\GLVSHQVHUV7KHELOODGGLWLRQDOO\PDNHVDQ\
SUHVFULSWLRQZULWWHQRQDSUHVFULSWLRQIRUPWKDWZDVRWKHUZLVHYDOLGSULRUWR-DQXDU\
EXWWKDWGRHVQRWLQFOXGHDXQLTXHO\VHULDOL]HGQXPEHURUDQ\SUHVFULSWLRQZULWWHQRQ
DIRUPDSSURYHGE\WKH'HSDUWPHQWRI-XVWLFHDVRI-DQXDU\DYDOLGSUHVFULSWLRQ
WKDWPD\EHILOOHGFRPSRXQGHGRUGLVSHQVHGXQWLO-DQXDU\7KHELOODXWKRUL]HVWKH
'HSDUWPHQWRI-XVWLFHWRH[WHQGWKLVWLPHSHULRGIRUDSHULRGQRORQJHUWKDQDQDGGLWLRQDO
PRQWKVLIWKHUHLVDQLQDGHTXDWHDYDLODELOLW\RIFRPSOLDQWSUHVFULSWLRQIRUPV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
&DOLIRUQLD $% &RQWUROOHG $FWLYH%LOO $VDPHQGHGRQ$GGVDVHFWLRQWKDWVWDWHV³,WLVWKHLQWHQWRIWKH/HJLVODWXUHWKDW
VXEVWDQFHV&85(6 )URP VWDWHODZVUHJDUGLQJWKHRSHUDWLRQDQGXVHRISUHVFULSWLRQGUXJPRQLWRULQJSURJUDPV
GDWDEDVH FRPPLWWHHFKDLU FRQWLQXHWRHPSRZHUKHDOWKFDUHRULHQWHGWHFKQRORJ\VROXWLRQVWRWKHRSLRLGFULVLV´:RXOG
ZLWKDXWKRU
V UHTXLUHDGLVSHQVLQJSKDUPDF\FOLQLFRURWKHUGLVSHQVHUWRUHSRUWWKHLQIRUPDWLRQUHTXLUHG
DPHQGPHQWV E\WKH&85(6GDWDEDVHQRPRUHWKDQRQHZRUNLQJGD\DIWHUDFRQWUROOHGVXEVWDQFHLV
$PHQGDQGUHUHIHU GLVSHQVHG:RXOGUHTXLUHDOOFRQWUROOHGVXEVWDQFHSUHVFULSWLRQVWREHUHSRUWHGWRWKH3'03
WRFRPPLWWHH5HDG LQFOXGLQJ6FKHGXOH,9DQG95HTXLUHVWKHDGRSWLRQRIQHZUHJXODWLRQVWRDGGUHVVWKH
QGWLPHDPHQGHG FRQGLWLRQVXQGHUZKLFKDQLQVXUHUSURYLGLQJZRUNHUV¶FRPSHQVDWLRQFRYHUDJHPD\DFFHVV
UHUHIHUUHGWR LQIRUPDWLRQLQ&85(6IRUSXUSRVHVRIUHYLHZLQJDZRUNHUV¶FRPSHQVDWLRQFODLPZKLFK
&RPPLWWHHRQ VKDOODWDPLQLPXPSURKLELWDQLQVXUHUIURPXVLQJLQIRUPDWLRQREWDLQHGIURPWKH&85(6
%XVLQHVV GDWDEDVHDVWKHVROHIDFWRULQHYDOXDWLQJDFODLPIRUDSSURYDORUGHQLDO
3URIHVVLRQVDQG
(FRQRPLF
'HYHORSPHQW
&DOLIRUQLD $% 2SLRLG $FWLYH%LOO ([LVWLQJODZUHTXLUHVDSUHVFULEHUZLWKFHUWDLQH[FHSWLRQVEHIRUHGLUHFWO\GLVSHQVLQJRU
SUHVFULSWLRQV ,Q6HQDWH LVVXLQJIRUDPLQRUWKHILUVWSUHVFULSWLRQIRUDFRQWUROOHGVXEVWDQFHFRQWDLQLQJDQRSLRLGLQD
LQIRUPDWLRQ %XVLQHVV VLQJOHFRXUVHRIWUHDWPHQWWRGLVFXVVVSHFLILHGLQIRUPDWLRQZLWKWKHPLQRUWKHPLQRU¶V
QRQSKDUPDFRORJLFDO 3URIHVVLRQVDQG SDUHQWRUJXDUGLDQRUDQRWKHUDGXOWDXWKRUL]HGWRFRQVHQWWRWKHPLQRU¶VPHGLFDOWUHDWPHQW
WUHDWPHQWVIRUSDLQ (FRQRPLF 7KLVELOOZRXOGH[WHQGWKDWUHTXLUHPHQWIRUWKHSUHVFULEHUE\DSSO\LQJLWWRDQ\SDWLHQWQRW
'HYHORSPHQW RQO\DPLQRUXQGHUWKRVHFLUFXPVWDQFHV7KHELOOZRXOGDOVRUHTXLUHWKHSUHVFULEHUWR
&RPPLWWHH+HDULQJ GLVFXVVWKHDYDLODELOLW\RIQRQSKDUPDFRORJLFDOWUHDWPHQWVIRUSDLQDVGHILQHG
'DWH ([LVWLQJODZPDNHVDQH[FHSWLRQWRWKHUHTXLUHPHQWIRUWKHSUHVFULEHULQWKHFDVHRID
SDWLHQWZKRLVEHLQJWUHDWHGIRUDGLDJQRVLVRIFKURQLFLQWUDFWDEOHSDLQDVVSHFLILHG7KLV
ELOOZRXOGUHPRYHWKDWH[FHSWLRQDQGZRXOGLQVWHDGPDNHDQH[FHSWLRQLQWKHFDVHRID
SDWLHQWZKRLVFXUUHQWO\UHFHLYLQJKRVSLFHFDUH7KHELOOZRXOGUHTXLUHWKHSUHVFULEHUDIWHU
GLVFXVVLQJWKHLQIRUPDWLRQWRRIIHUDVGHHPHGDSSURSULDWHE\WKHSUHVFULEHUDUHIHUUDOIRUD
SURYLGHURIQRQSKDUPDFRORJLFDOWUHDWPHQWVIRUSDLQDQGWRREWDLQLQIRUPHGZULWWHQFRQVHQW
IURPWKHSDWLHQWDPLQRUSDWLHQW¶VSDUHQWRUJXDUGLDQRUDQRWKHUDXWKRUL]HGDGXOWDV
VSHFLILHG([LVWLQJIHGHUDOODZ33$&$UHTXLUHVDKHDOWKEHQHILWSODQWRHQVXUHWKDW
FRYHUDJHLQFOXGHVWKHHVVHQWLDOKHDOWKEHQHILWVSDFNDJHDVGHILQHG7KLVELOOZRXOGPDNH
OHJLVODWLYHILQGLQJVDQGGHFODUDWLRQVUHODWLQJWRDGGLFWLRQDVVRFLDWHGZLWKRYHUUHOLDQFHRQ
SUHVFULSWLRQPHGLFDWLRQIRUSDLQPDQDJHPHQWDQGSURYLGLQJWKDWQRQSKDUPDFRORJLFDO
WUHDWPHQWVIRUSDLQVKRXOGEHFRQVLGHUHGGXULQJWKHQH[WXSGDWHWRWKHVWDWH¶VHVVHQWLDO
KHDOWKEHQHILWVEHQFKPDUNSODQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
&DOLIRUQLD $% 2SLRLG3UHYHQWLRQ $FWLYH%LOO,Q 7KLVELOOZRXOGFRPPHQFLQJZLWKWKH±ILVFDO\HDUUHTXLUHDPDQXIDFWXUHURU
DQG5HKDELOLWDWLRQ )ORRU3URFHVV ZKROHVDOHUDVGHILQHGWKDWVHOOVRUGLVWULEXWHVRSLRLGGUXJVLQWKLVVWDWHWRVXEPLWWRWKH
$FW $VVHPEO\UG GHSDUWPHQWDUHSRUWLQFOXGLQJVSHFLILHGLQIRUPDWLRQWKDWGHWDLOVDOORSLRLGGUXJVVROGRU
5HDGLQJ)LOH GLVWULEXWHGLQWKLVVWDWHGXULQJWKHSUHFHGLQJILVFDO\HDU7KHELOOZRXOGFRPPHQFLQJZLWK
$VVHPEO\%LOOV WKH±ILVFDO\HDUUHTXLUHWKHGHSDUWPHQWLQFRQVXOWDWLRQZLWKWKHERDUGWRFDOFXODWH
WKHUDWDEOHVKDUHRIDPDQXIDFWXUHURUZKROHVDOHUZKLFKLVWKHLQGLYLGXDOSRUWLRQRIWKH
FROOHFWLYHVXPRIRUDOHVVHUDPRXQWDVVSHFLILHGWREHSDLGE\WKH
PDQXIDFWXUHUVDQGZKROHVDOHUVEDVHGRQWKHLQIRUPDWLRQUHSRUWHGZLWKRXWGRXEOHFRXQWLQJ
WKHRSLRLGGUXJLIERWKDPDQXIDFWXUHUDQGDZKROHVDOHUVROGRUGLVWULEXWHGWKHGUXJLQWKLV
VWDWH7KHELOOZRXOGVXEMHFWWKHPDQXIDFWXUHUDQGZKROHVDOHUWRVSHFLILHGFLYLOSHQDOWLHVIRU
IDLOLQJWRFRPSO\ZLWKWKHUHSRUWLQJRUSD\PHQWUHTXLUHPHQWV7KHELOOZRXOGUHTXLUHWKH
GHSRVLWRIWKHSD\PHQWVDQGSHQDOWLHVOHVVUHIXQGVDQGWKHGHSDUWPHQW¶VDGPLQLVWUDWLYH
FRVWVLQWRWKHFRQWLQXRXVO\DSSURSULDWHG2SLRLG3UHYHQWLRQDQG5HKDELOLWDWLRQ3URJUDP
)XQGZKLFKWKHELOOZRXOGFUHDWHWKHUHE\PDNLQJDQDSSURSULDWLRQ7KHELOOZRXOGUHTXLUH
WKHGHSDUWPHQWWRGLVWULEXWHPRQH\VLQWKHIXQGWRFRXQWLHVRUORFDOQRQSURILWFRPPXQLW\
EDVHGRUJDQL]DWLRQVIRUSXUSRVHVRIRSLRLGSUHYHQWLRQDQGUHKDELOLWDWLRQSURJUDPV7KHELOO
ZRXOGEDVHWKHGLVWULEXWLRQRIPRQH\VRQFRXQW\QHHGVXVLQJRQO\VSHFLILHGLQIRUPDWLRQ
UHODWLQJWRRSLRLGRYHUGRVHLQWKHFRXQWLHV
&RORUDGR ,PSOHPHQWLQJ *XLGHOLQHVIRUWKH ,PSOHPHQWHG 2Q0DUFKWKHUHYLVHG*XLGHOLQHVIRU3UHVFULELQJDQG'LVSHQVLQJ2SLRLGVZHUH
6% 6DIH3UHVFULELQJ &RORUDGR'HQWDO DGRSWHGE\DOOVL[RI&RORUDGR¶VSUHVFULELQJDQGGLVSHQVLQJ%RDUGV5HYLVLRQVZHUH
DQG'LVSHQVLQJ %RDUG&RORUDGR QHFHVVDU\GXHWRWKHQHZUHTXLUHPHQWVLQ6HQDWH%LOO&OLQLFDO3UDFWLFHIRU2SLRLG
2SLRLGV 0HGLFDO%RDUG 3UHVFULELQJ7KLVQHZVWDWHODZZHQWLQWRHIIHFWRQ0D\LPPHGLDWHO\XSRQWKH
6WDWH%RDUGRI *RYHUQRU¶VVLJQDWXUH7KHODZVHWVIRUWKSUHVFULELQJUHTXLUHPHQWVVXFKDVWKHQXPEHURI
1XUVLQJ6WDWH RSLRLGVWREHSUHVFULEHGDQGUHTXLUHG3UHVFULSWLRQ'UXJ0RQLWRULQJ3URJUDPFKHFNVLQ
%RDUGRI FHUWDLQFOLQLFDOVLWXDWLRQV7KHODZDOVRSURYLGHVVSHFLILFH[HPSWLRQVWRWKHVHUHTXLUHPHQWV
2SWRPHWU\ 7KH%RDUGVZLOOFRQWLQXHWRHYDOXDWHWKH3ROLF\LQFRUSRUDWLQJQHZOHJLVODWLRQDQG
&RORUDGR3RGLDWU\ FROODERUDWLQJZLWKRWKHUVWDWHDJHQFLHVUHVHDUFKHUVSUDFWLWLRQHUVSDWLHQWVWKH&RORUDGR
%RDUG6WDWH%RDUG &RQVRUWLXPIRU3UHVFULSWLRQ'UXJ$EXVH3UHYHQWLRQDQGRWKHUVWDNHKROGHUVWRLGHQWLI\DQG
RI3KDUPDF\DQG HYDOXDWHRXWFRPHV7KH%RDUGVUHPDLQFRPPLWWHGWRWKLV3ROLF\DVDOLYLQJGRFXPHQW
HQGRUVHGE\WKH UHIOHFWLYHRIWKHHYROYLQJVFLHQFHWHFKQRORJ\SROLF\DQGODZLQWKHLURQJRLQJHIIRUWVWR
6WDWH%RDUGRI DGGUHVV&RORUDGR¶VRSLRLGFULVLV
9HWHULQDU\
0HGLFLQH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
,RZD 5XOHPDNLQJUHODWHG ,PSOHPHQWHG 5HTXLUHVSUHVFULELQJSUDFWLWLRQHUVWRUHJLVWHUZLWK3'03DWWKHVDPHWLPHWKH\DSSO\IRU
WRFRQWUROOHG 3KDUPDF\%RDUG FRQWUROOHGVXEVWDQFHUHJLVWUDWLRQ$OORZV%RDUGWRDVVHVVDVXUFKDUJHRIXSWRRID
VXEVWDQFHV ,RZD UHJLVWUDWLRQIHHWREHGHSRVLWHGLQWR3'03IXQG5HTXLUH3'03FKHFNVIRUEXWDOELWDO
$GPLQLVWUDWLYH H[HPSWHGXQGHUSUHYLRXVODZ$OORZVGLVSRVDORIFRQWUROOHGVXEVWDQFHVRIDKRVSLFH
&RGH SDWLHQWE\HPSOR\HHVRIDTXDOLILHGKRVSLFHSURJUDPSXUVXDQWWRHQDFWHGIHGHUDO
6833257$FW
0LQQHVRWD +) 2SLRLG2PQLEXV 6LJQHGE\ &RQWDLQVDUWLFOHVUHODWHGWRRSLRLGSURGXFWVWHZDUGVKLSKHDOWKSODQFRPSDQ\UHTXLUHPHQWV
*RYHUQRU6HVVLRQ SUHYHQWLRQDQGHGXFDWLRQLQLWLDWLYHVWRDGGUHVVRSLRLGDGGLFWLRQLQWHUYHQWLRQWUHDWPHQWDQG
/DZ&KDSWHU UHFRYHU\LQLWLDWLYHVWRDGGUHVVRSLRLGDGGLFWLRQDQGDSSURSULDWLRQVIRURSLRLGLQLWLDWLYHV
(VWDEOLVKHVWKH2SLRLG$GGLFWLRQ$GYLVRU\&RXQFLODQGWKHRSLRLGVWHZDUGVKLSIXQG
5HTXLUHVGUXJPDQXIDFWXUHUVDQGZKROHVDOHGUXJGLVWULEXWRUVWKDWVHOORUGLVWULEXWHRSLRLGV
LQ0LQQHVRWDWRSD\DQRSLDWHSURGXFWUHJLVWUDWLRQIHH5HTXLUHVKHDOWKSODQVWRFRYHU
DFXSXQFWXUHVHUYLFHVIRUWKHWUHDWPHQWRISDLQDQGRQJRLQJSDLQPDQDJHPHQW$OORZV
SHUVRQVWRLQFOXGHLQKHDOWKFDUHGLUHFWLYHVLQVWUXFWLRQVWRSURKLELWWKHXVHRIRSLRLGV
SURYLGHVDOWHUQDWLYHPHWKRGVRIGUXJGLVSRVDOIRUFRXQW\VKHULIIVH[SDQGVSKRWR
LGHQWLILFDWLRQUHTXLUHPHQWVIRUWKHSXUFKDVHRIFRQWUROOHGVXEVWDQFHVSODFHVWLPHOLPLWVRQ
ILOOLQJRSLRLGSUHVFULSWLRQVHVWDEOLVKHVRSLRLGTXDQWLW\OLPLWVIRUWUHDWLQJDFXWHSDLQ
DVVRFLDWHGZLWKDPDMRUWUDXPDRUVXUJLFDOSURFHGXUHDQGUHTXLUHVFRQWLQXLQJHGXFDWLRQRQ
SUHVFULELQJRSLRLGVDQGRWKHUFRQWUROOHGVXEVWDQFHVLQFOXGLQJQRQSKDUPDFRORJLFDO
DOWHUQDWLYHVIRUSDLQWUHDWPHQWDQGPDQDJHPHQW
0RQWDQD +% *HQHUDOO\UHYLVH 6LJQHGE\ 3URYLGLQJIRUWKHSRVLWLYHLGHQWLILFDWLRQRISRWHQWLDOUHFLSLHQWVRIFRQWUROOHGVXEVWDQFHV
SUHVFULSWLRQGUXJ *RYHUQRU&KDSWHU UHVWULFWLQJSUHVFULSWLRQVIRURSLRLGQDLYHSDWLHQWVWRDGD\VXSSO\DQGSURYLGLQJ
ODZV H[FHSWLRQVUHTXLULQJFHUWDLQSURIHVVLRQDOVZKRSUHVFULEHRUGLVSHQVHSUHVFULSWLRQGUXJVWR
UHJLVWHUWRXVHWKHSUHVFULSWLRQGUXJUHJLVWU\UHTXLULQJDSUHVFULEHURUDXWKRUL]HGDJHQWWR
UHYLHZWKHSUHVFULSWLRQGUXJUHJLVWU\EHIRUHSUHVFULELQJDQRSLRLGRUDEHQ]RGLD]HSLQHWRD
SDWLHQWDQGSURYLGLQJH[FHSWLRQVSURYLGLQJSHQDOWLHVSURYLGLQJUXOHPDNLQJDXWKRULW\HWF
0RQWDQD +% *HQHUDOO\UHYLVH 6LJQHGE\ $Q\SHUVRQHQJDJLQJLQWKHLQLWLDOVDOHRIRSLRLGVLQWKHVWDWHVKDOOILUVWREWDLQDOLFHQVH
ODZVIRUIXQGLQJRI *RYHUQRU&KDSWHU IURPWKHGHSDUWPHQWDQGSD\WKHDQQXDOOLFHQVHIHHRI$UHWDLOSKDUPDF\LVQRW
WUHDWPHQWFRXUWV UHTXLUHGWRREWDLQWKHOLFHQVH7KHGHSDUWPHQWVKDOOPDLQWDLQRQLWVZHEVLWHDFXUUHQWOLVWRI
DSSURYHGOLFHQVHGRSLRLGVHOOHUVHOLJLEOHWRVHOORSLRLGVLQWKHVWDWH7KHDQQXDOOLFHQVHIHH
UHYHQXHPXVWEHGHSRVLWHGLQWKHWUHDWPHQWFRXUWVXSSRUWDFFRXQW
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
1HZ QD 0RUSKLQH ,PSOHPHQWHG1HZ ,IPRUHWKDQ00(GD\RIDQRSLRLGLVUHTXHVWHGWKHSDWLHQWPXVWEHDWOHDVW\HDUV
+DPSVKLUH 0LOOLJUDP +DPSVKLUH RIDJHKDYHDGLDJQRVLVRIFKURQLFSDLQDQGKDYHGRFXPHQWHGIDLOXUHRUDGHTXDWHWULDORI
(TXLYDOHQW&ULWHULD 0HGLFDLG)HHIRU RSLRLGVDWDORZHUGRVHWKH3'03PXVWEHUHYLHZHGZLWKLQWKHSDVWGD\VWKH
6HUYLFH3URJUDP SUHVFULSWLRQPXVWEHZULWWHQE\DSDLQVSHFLDOLVWRULQFRQVXOWDWLRQZLWKDSDLQVSHFLDOLVWD
DSSURYHG$SULO ZULWWHQWUHDWPHQWDJUHHPHQWPXVWEHLQXVHDQGWKHSDWLHQWPXVWEHSUHVFULEHGFRQFXUUHQW
QDOR[RQH+RVSLFHFDQFHUHQGRIOLIHDQGVLFNOHFHOODUHH[HPSWIURPSULRUDXWKRUL]DWLRQ
1RUWK QD -RLQW6WDWHPHQWRQ ,PSOHPHQWHG 2XWOLQHVWKHOHJDOVFRSHRISUDFWLFHIRUHDFKW\SHRISUHVFULEHUSK\VLFLDQQXUVH
&DUROLQD 0HGLFDWLRQ %RDUGRI1XUVLQJ SKDUPDFLVWSURIHVVLRQDOFROODERUDWLRQDQGFRPPXQLFDWLRQDPRQJKHDOWKSURIHVVLRQDOV
0DQDJHPHQWRI 0HGLFDO%RDUG SURYLGLQJSDOOLDWLYHFDUHDQGDVWDQGDUGRIFDUHWKDWDVVXUHVRQJRLQJSDLQDVVHVVPHQWD
3DLQLQ(QGRI/LIH %RDUGRI3KDUPDF\ WKHUDSHXWLFSODQIRUSDLQPDQDJHPHQWLQWHUYHQWLRQVDQGHYLGHQFHRIDGHTXDWHV\PSWRP
&DUH PDQDJHPHQWIRUWKHG\LQJSDWLHQW
2KLR QD )RU3UHVFULEHUV ,PSOHPHQWHG 1RPRUHWKDQVHYHQGD\VRIRSLRLGVFDQEHSUHVFULEHGIRUDGXOWVZLWKH[FHSWLRQV1RPRUH
1HZ/LPLWVRQ %RDUGRI3KDUPDF\ WKDQILYHGD\VRIRSLRLGVFDQEHSUHVFULEHGIRUPLQRUVDQGRQO\DIWHUWKHZULWWHQFRQVHQWRI
3UHVFULSWLRQ WKHSDUHQWRUJXDUGLDQLVREWDLQHG+HDOWKFDUHSURYLGHUVPD\SUHVFULEHRSLRLGVLQH[FHVVRI
2SLRLGVIRU$FXWH WKHGD\VXSSO\OLPLWVRQO\LIWKH\SURYLGHDVSHFLILFUHDVRQLQWKHSDWLHQW¶VPHGLFDOUHFRUG
3DLQ ([FHSWDVSURYLGHGIRULQWKHUXOHVWKHWRWDOPRUSKLQHHTXLYDOHQWGRVH0('RID
SUHVFULSWLRQIRUDFXWHSDLQFDQQRWH[FHHGDQDYHUDJHRI0('SHUGD\$OOSUHVFULEHUVDUH
UHTXLUHGWRLQFOXGHWKHILUVWIRXUDOSKDQXPHULFFKDUDFWHUVRIWKHGLDJQRVLVFRGH,&'RU
WKHIXOOSURFHGXUHFRGH&XUUHQW'HQWDO7HUPLQRORJ\&'7RQDOOFRQWUROOHGVXEVWDQFH
SUHVFULSWLRQVZKLFKZLOOWKHQEHHQWHUHGE\WKHSKDUPDF\LQWR2KLR¶VSUHVFULSWLRQ
PRQLWRULQJSURJUDP
2UHJRQ QD QD ,PSOHPHQWHG (IIHFWLYH2FWREHU2UHJRQ0HGLFDLGSDWLHQWVZLWKEDFNDQGQHFNSDLQZLOOQR
+HDOWK(YLGHQFH ORQJHUEHUHTXLUHGWRWDSHURIIRSLRLGVDVKDGEHHQUHTXLUHGXQGHUH[LVWLQJSROLF\
5HYLHZ
&RPPLVVLRQ
2UHJRQ+HDOWK
$XWKRULW\
3HQQV\OYDQLD QD 2SLRLGVLQWKH ,PSOHPHQWHG *XLGHOLQHVFRYHULQJWRSLFVVXFKDVDFXWHDQGSRVWRSHUDWLYHSDLQQRQRSLRLGRSWLRQV
'HQWDO3UDFWLFH 'HSDUWPHQWRI DYRLGLQJORQJDFWLQJDQGRUH[WHQGHGUHOHDVHIRUPXODWLRQVGUXJLQWHUDFWLRQVLQIRUPHG
+HDOWK FRQVHQW3'03FKHFNVHWF
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
5KRGH,VODQG QD 3DLQ0DQDJHPHQW 'HSDUWPHQWRI 7KH5KRGH,VODQG'HSDUWPHQWRI+HDOWK5,'2+LVSURSRVLQJUXOHPDNLQJWRFUHDWH
2SLRLG8VHDQGWKH +HDOWK3URSRVHG UHTXLUHPHQWVIRUHSUHVFULSWLRQVLPSOHPHQWJUDPPDWLFDOFRUUHFWLRQVDQGUHYLVHWKHXVHRI
5HJLVWUDWLRQRI $PHQGPHQWWR VHYHUDOWHUPVLQFOXGLQJ00(DQG3'03HOLPLQDWHGHILQLWLRQVWKDWDUHQRWXWLOL]HGLQWKH
'LVWULEXWRUVRI 5XOH3XEOLF UHJXODWLRQVRUWKDWDUHEHLQJUHSODFHGZLWKXSGDWHGWHUPVFUHDWHGHILQLWLRQVIRUHOHFWURQLF
&RQWUROOHG &RPPHQW(QGV SUHVFULSWLRQVWDQGLQJRUGHUDQGVXEVWDQFHXVHGLVRUGHUFODULI\PDQGDWRU\3'03UHYLHZ
6XEVWDQFHVLQ FODULI\UHTXLUHPHQWVIRUGRFXPHQWDWLRQRISDWLHQWHGXFDWLRQUHJDUGLQJRSLRLGVFODULI\
5KRGH,VODQG UHTXLUHPHQWVIRU,&'FRGHHTXLYDOHQWVDVGHWHUPLQHGE\5,'2+UHYLVHUHPRYHVHFWLRQ
5,&5 WLWOHVDQGFRUUHFWUHIHUHQFHVWRRWKHU5,'2+UHJXODWLRQV
7HQQHVVHH QD 7HQQHVVHH&OLQLFDO ,PSOHPHQWHG *XLGHOLQHVLQWHQGHGWRGHILQHWKHDSSURSULDWHWUHDWPHQWRIFKURQLFSDLQFRYHULQJWRSLFV
3UDFWLFH*XLGHOLQHV 'HSDUWPHQWRI VXFKDVSULRUWRLQLWLDWLQJRSLRLGWKHUDS\LQLWLDWLQJRSLRLGWKHUDS\RQJRLQJRSLRLGWKHUDS\
IRU2XWSDWLHQW +HDOWK SDLQPHGLFLQHVSHFLDOLVWVWKH3'03XULQHGUXJWHVWLQJWDSHULQJPRUSKLQHPLOOLJUDP
0DQDJHPHQWRI HTXLYDOHQWGRVHQDOR[RQHVDIHGLVSRVDOZRUNHUVFRPSHQVDWLRQLVVXHVVSHFLILFWRZRPHQ
&KURQLF1RQ QRQRSLRLGWKHUDSLHVDFXWHDQGVXUJLFDOSDLQSHGLDWULFSDLQDQGPRUH
0DOLJQDQW3DLQ
8WDK +% 2SLRLG3UHVFULSWLRQ 6LJQHGE\ 3HUPLWVWKH'LYLVLRQRI2FFXSDWLRQDODQG3URIHVVLRQDO/LFHQVLQJWRFRQVXOWZLWKSUHVFULEHUV
5HJXODWLRQ *RYHUQRU6HVVLRQ DQGKHDOWKFDUHV\VWHPVWRDVVLVWWKHSUHVFULEHURUKHDOWKFDUHV\VWHPLQIROORZLQJHYLGHQFH
$PHQGPHQWV /DZ&KDSWHU EDVHGJXLGHOLQHVUHJDUGLQJWKHSUHVFULELQJRIFRQWUROOHGVXEVWDQFHV$PHQGVSURYLVLRQV
UHODWLQJWRVWHSVWKDWWKHGLYLVLRQPXVWWDNHDIWHULWUHFHLYHVDUHSRUWIURPDPHGLFDO
H[DPLQHUUHODWLQJWRDQRYHUGRVHLQYROYLQJDFRQWUROOHGVXEVWDQFH
8WDK +% &RQWUROOHG 6LJQHGE\ 5HTXLUHVDSUHVFULEHUWRGLVFXVVWKHULVNVRIXVLQJDQRSLDWHZLWKDSDWLHQWRUWKHSDWLHQWV
6XEVWDQFH$EXVH *RYHUQRU6HVVLRQ JXDUGLDQEHIRUHLVVXLQJDQLQLWLDORSLDWHSUHVFULSWLRQ
$PHQGPHQWV /DZ&KDSWHU
8WDK ,PSOHPHQWLQJ I ,PSOHPHQWHG 3HUPLWVWKH'LYLVLRQRI2FFXSDWLRQDODQG3URIHVVLRQDO/LFHQVLQJWRFRQVXOWZLWKSUHVFULEHUV
+% 'DWDEDVH 'LYLVLRQRI DQGKHDOWKFDUHV\VWHPVWRDVVLVWWKHSUHVFULEHURUKHDOWKFDUHV\VWHPLQIROORZLQJHYLGHQFH
XWLOL]DWLRQ 2FFXSDWLRQDODQG EDVHGJXLGHOLQHVUHJDUGLQJWKHSUHVFULELQJRIFRQWUROOHGVXEVWDQFHV$PHQGVSURYLVLRQV
3URIHVVLRQDO UHODWLQJWRVWHSVWKDWWKHGLYLVLRQPXVWWDNHDIWHULWUHFHLYHVDUHSRUWIURPDPHGLFDO
/LFHQVLQJ H[DPLQHUUHODWLQJWRDQRYHUGRVHLQYROYLQJDFRQWUROOHGVXEVWDQFH
8WDK ,PSOHPHQWLQJ 2SLDWH ,PSOHPHQWHG 5HTXLUHVDSUHVFULEHUWRGLVFXVVWKHULVNVRIXVLQJDQRSLDWHZLWKDSDWLHQWRUWKHSDWLHQWV
+% SUHVFULSWLRQ 'LYLVLRQRI JXDUGLDQEHIRUHLVVXLQJDQLQLWLDORSLDWHSUHVFULSWLRQ
FRQVXOWDWLRQ 2FFXSDWLRQDODQG
3URIHVVLRQDO
/LFHQVLQJ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
8WDK QD &RQFXUUHQW 8WDK0HGLFDLG 8WDK0HGLFDLGLVLPSOHPHQWLQJDPXOWLVWDJHHIIRUWWRLGHQWLI\DQGOLPLWWKHFRQFXUUHQW
3UHVFULSWLRQVIRU HIIHFWLYH$SULO ILOOLQJRIEHQ]RGLD]HSLQHDQGRSLRLGPHGLFDWLRQV7KLVLQLWLDWLYHDLPVWRVXSSRUW&'&
%HQ]RGLD]HSLQHV JXLGHOLQHVWKDWUHFRPPHQGVDJDLQVWFRPELQHGXVHZKLFKLVDVVRFLDWHGZLWKULVNRIIDWDO
DQG2SLRLGV RYHUGRVH&XUUHQWO\DQDXWRPDWHGSURFHVVPRQLWRUVDQGUHSRUWVZKHQDQLQGLYLGXDOLVFR
SUHVFULEHGRSLRLGVDQGEHQ]RGLD]HSLQHV7KHSHHUWRSHHUWHDPZLOOFRQGXFWRXWUHDFKWR
LGHQWLILHGSUHVFULEHUVWRDOHUWWKHPRISDWLHQWVUHFHLYLQJFRQFXUUHQWWKHUDS\SURYLGH
HGXFDWLRQDURXQGFRQFXUUHQWXVHDYRLGDQFHDQGHQFRXUDJHSUHVFULSWLRQGUXJPRQLWRULQJ
SURJUDP3'03XVHEHIRUHSUHVFULELQJD6FKHGXOH,,FRQWUROOHGVXEVWDQFHLQDFFRUGDQFH
ZLWKWKH)HGHUDO+5
8WDK QD 2SLRLG3ROLF\ 8WDK0HGLFDLG (IIHFWLYH-XO\WKHKLJKHUFXPXODWLYHGDLO\PRUSKLQHHTXLYDOHQWGRVH0('
&KDQJHV HIIHFWLYH-DQXDU\ WKUHVKROGIRU³RSLRLGH[SHULHQFHG´LQGLYLGXDOVZLOOEHUHGXFHGWR0('7KLVZLOO
DQG-XO\ VXSSRUWRQJRLQJHIIRUWVWRDFKLHYHRQHFRPPRQ0('VWDQGDUGIRUDOO8WDK0HGLFDLG
PHPEHUVRYHUWLPH2Q-DQXDU\8WDK0HGLFDLGDGRSWHGPRUSKLQHPLOOLJUDP
HTXLYDOHQW00(DQG0('PHWKRGRORJ\IRUDGMXGLFDWLRQRIDOORSLRLGFODLPVIRUWKH
WUHDWPHQWRIQRQFDQFHUSDLQ7KLVLQLWLDWLYHZDVDGGHGWRH[LVWLQJRSLRLGTXDQWLW\OLPLWV
DQGGD\V¶VXSSO\OLPLWDWLRQVWRVXSSRUW&'&VDIHW\JXLGDQFHDQGEHVWSUDFWLFHVWDQGDUGV$W
WKDWWLPHWZRVHWVRIGDLO\0('WKUHVKROGVZHUHHVWDEOLVKHGDWKUHVKROGRI0('IRU
³RSLRLGQDwYH´LQGLYLGXDOVZKRKDYHQRWKDGDFODLPIRUDQRSLRLGLQWKHODVWGD\VDQG
0('IRU³RSLRLGH[SHULHQFHG´LQGLYLGXDOVZKRKDYHKDGDFODLPIRUDQRSLRLGLQWKH
ODVWGD\V
9HUPRQW ,PSOHPHQWLQJ 5XOH*RYHUQLQJWKH ,PSOHPHQWHG 8SGDWHVWKHUXOHV3URYLGHVOHJDOUHTXLUHPHQWVIRUWKHDSSURSULDWHXVHRIRSLRLGVLQ
$FW 3UHVFULELQJRI 'HSDUWPHQWRI WUHDWLQJSDLQ7KHSUHVFULSWLRQOLPLWVIRUDFXWHSDLQRQO\DSSO\WRWKHILUVWSUHVFULSWLRQ
DQG$FW 2SLRLGVIRU3DLQ +HDOWK ZULWWHQIRUDJLYHQFRXUVHRIWUHDWPHQWDQGGRQRWDSSO\WRUHQHZDOVRUUHILOOV7KLVUXOH
RQO\DSSOLHVWR6FKHGXOH,,,,,RU,9&RQWUROOHG6XEVWDQFHV5HTXLUHVFRQVLGHUDWLRQRIWKH
XVHRIQRQRSLRLGVDQGQRQSKDUPDFRORJLFDOWUHDWPHQWVGRFXPHQWDWLRQXVHRIWKH3'03
SDWLHQWHGXFDWLRQLQIRUPHGFRQVHQWFRQVXOWDWLRQRUUHIHUUDOWRDSDLQVSHFLDOLVWDWFHUWDLQ
WLPHVGXULQJWUHDWPHQWFRSUHVFULSWLRQVRIQDOR[RQHIRUFHUWDLQSDWLHQWV(VWDEOLVKHV
YDULRXVH[WUHPHO\VSHFLILFDQGGHWDLOHGOLPLWVIRURSLRLGVZKHQXVHGWRWUHDWPLQRUSDLQ
PRGHUDWHSDLQVHYHUHSDLQDQGH[WUHPHSDLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
%LOO
-XULVGLFWLRQ 1XPEHU 7LWOH 6WDWXV +RZ3ROLF\$IIHFWV2SLRLG3UHVFULELQJ
:DVKLQJWRQ 6% &RQFHUQLQJ2SLRLG 6LJQHGE\ 5HTXLUHVSUHVFULEHUVRIRSLRLGVWRLQIRUPSDWLHQWVRIWKHLUULJKWWRUHIXVHDQRSLRLG
8VH'LVRUGHU *RYHUQRUHIIHFWLYH SUHVFULSWLRQIRUDQ\UHDVRQ,IDSDWLHQWLQGLFDWHVVXFKDUHIXVDOLWPXVWEHGRFXPHQWHGLQ
7UHDWPHQW -XO\ WKHPHGLFDOUHFRUGWRSUHYHQWWKHSUHVFULSWLRQRIRSLRLGVWRWKHSDWLHQWXQWLOVXFKWLPHWKDW
3UHYHQWLRQDQG WKHSDWLHQWUHYRNHVWKHUHTXHVW$OORZVSKDUPDFLVWVWRSDUWLDOO\ILOODSUHVFULSWLRQIRUD
5HODWHG6HUYLFHV 6FKHGXOH,,FRQWUROOHGVXEVWDQFHLIUHTXHVWHGE\WKHSDWLHQWRUSUHVFULELQJSUDFWLWLRQHU
(VWDEOLVKHVH[HPSWLRQVIURPUHTXLUHG3'03FKHFNV(VWDEOLVKHVUHTXLUHPHQWVIRU
HOHFWURQLFSUHVFULSWLRQV5HTXLUHVLQIRUPHGFRQVHQWFRQVLGHUDWLRQRIQRQRSLRLGVDQGWKH
GLVWULEXWLRQRIZULWWHQZDUQLQJODQJXDJHIRUSDWLHQWHGXFDWLRQ$OORZV3'03GDWDDERXW
GLVSHQVHUVDQGSUHVFULEHUVWKDWLQFOXGHVLQGLUHFWSDWLHQWLGHQWLILHUVWREHXVHGE\YDULRXV
HQWLWLHVIRUUHVHDUFKSXUSRVHV$OORZVSUHVFULEHUIHHGEDFNUHSRUWVWRDLGLQTXDOLW\
LPSURYHPHQW
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$SSHQGL[&3ROLFLHVIURP7RS7HQ+HDOWK,QVXUHUV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
3ROLFLHVIURP7RS7HQ+HDOWK,QVXUHUV
1RWHV 6RXUFH
8QLWHG KWWSVZZZXKFFRP
+HDOWK
3UHYHQWPLVXVHDQGDGGLFWLRQ(QVXUHDGKHUHQFHWR&'&JXLGHOLQHVIRUXVHGRVLQJDQG KWWSVQHZVURRPXKFFRPRSLRLGVRSLRLG
OHQJWKRIRSLRLGWKHUDS\LQWUHDWPHQWRIFKURQLFDQGDFXWHSDLQVKDULQJLQIRUPDWLRQRQ HSLGHPLFKWPO
RXWOLHUVZLWKSURYLGHUVVXSSO\OLPLWVRQSUHVFULSWLRQVSULRUDXWKRUL]DWLRQSURJUDPVUHDOWLPH
PHGLFDWLRQFKHFNVWRLGHQWLI\XQVDIHFRPELQDWLRQVHGXFDWLQJKHDOWKSURIHVVLRQDOVRQEHVW
SUDFWLFHV
7UHDWLQJDGGLFWLRQ&RQQHFWLQJPHPEHUVZLWK0$7GHFUHDVLQJRSLRLGSUHVFULSWLRQVWR
SUHJQDQWZRPHQUHIHUUHGWR0$7RUFDVHPDQDJHPHQWSURPRWLQJQDOR[RQHDQGRIIHULQJ
SHUVRQDOL]HGWUHDWPHQWZLWKHYLGHQFHEDVHGPHWKRGV
6XSSRUWLQJORQJWHUPUHFRYHU\8VHRIFHUWLILHGSHHUVXSSRUWVSHFLDOLVWVLGHQWLI\LQJWKRVH
DWULVNDKHDGRIWLPH8QLWHG+HDOWK2SLRLG&RPPXQLW\3DUWQHUVKLS
3URYLGHVPRUHGHWDLOUHJDUGLQJSURJUDPPLQJVXFKDVZRUNLQJZLWKGHQWLVWRQZLVGRPWRRWK KWWSVQHZVURRPXKFFRPRSLRLGVXKFRSLRLGV
SDLQPDQDJHPHQW RYHUYLHZKWPO
$SUHVFULSWLRQGUXJSROLF\WKDWOLPLWVDOOILUVWWLPHRSLRLGSUHVFULSWLRQVZULWWHQE\GHQWDO KWWSVQHZVURRPXKFFRPRSLRLGVGHQWDO
KHDOWKSURIHVVLRQDOVIRUSHRSOHDJHDQGXQGHUWRQRPRUHWKDQWKUHHGD\VDQGIHZHUWKDQ RSLRLGVKWPO
PRUSKLQHPLOOLJUDPHTXLYDOHQWVSHUGD\DVUHFRPPHQGHGE\WKH&'&JXLGHOLQH
$QWKHP KWWSVZZZDQWKHPFRP
/LPLWVGD\V
VXSSO\IRUDFXWHSDLQSULRUDXWKRUL]DWLRQIRUORQJDFWLQJRSLRLGWKHUDS\ KWWSVZZZEFEVFRPQHZVSUHVVUHOHDVHVDQWKHP
LQLWLDWLRQFDQORFNSDWLHQWVLQWRRQHSKDUPDF\SUHVFULEHUHOHFWURQLFQRWLFHVWRSUHVFULEHUV EOXHFURVVDQGEOXHVKLHOGKHOSVUHGXFHRSLRLG
DERXWSDWLHQWVDWULVNQRWLFHWRSUHVFULEHUVDERXWDGGLWLRQDOFRQFHUQV XVHFRQQHFWLFXW
$HWQD KWWSVDHWQDFRP
LGHQWLI\DQGSURPRWHLQQHWZRUNKLJKYDOXHWUHDWPHQWIDFLOLWLHVIRURSLRLGXVHGLVRUGHU KWWSVQHZVDHWQDFRPDHWQDPDNLQJ
WKURXJK,QVWLWXWHVRI4XDOLW\SURJUDP SURJUHVVLQLWVILJKWDJDLQVWRSLRLGPLVXVHDEXVH
&RQWUROOHG6XEVWDQFH8VH3URJUDPPRQLWRUVIRUSRWHQWLDODWULVNSUHVFULELQJDQGDOHUWV KWWSVQHZVDHWQDFRPZSFRQWHQWXSORDGV
PHPEHUVDQGWKHLUSUHVFULELQJGRFWRUV 2SLRLG$EXVHB2QH3DJHUB-XO\B),1$/SGI
6WRU\DERXWDFWLYLWLHVLQ'H.DOE&RXQW\*HRUJLD KWWSVQHZVDHWQDFRPDHWQDMRLQVORFDO
OHDGHUVLQGHNDOEFRXQW\JHRUJLDWRFRPEDW
RSLRLGFULVLV
*XDUGLDQ$QJHOSURJUDPVXEVWDQFHDEXVHFRXQVHORUVFDOOSDWLHQWVLGHQWLILHGDVUHFHQWO\ KWWSVQHZVDHWQDFRPDOLIHOLQHIRU
H[SHULHQFHGDQRSLRLGRYHUGRVH PHPEHUVZKRUHFHQWO\VXUYLYHGDQRYHUGRVH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
$FDGHPLFGHWDLOLQJSURJUDPDLPVWRHGXFDWHSUHVFULEHUVDERXWVDIHRSLRLGSUHVFULELQJ KWWSVQHZVDHWQDFRPDHWQDHPSRZHULQJ
SK\VLFLDQVWRILJKWRSLRLGFULVLVYLDEHVWSUDFWLFHV
,QIRJUDSKLFKLJKOLJKWLQJ$HWQD
VUHVSRQVHWRWKHRSLRLGFULVLV KWWSVQHZVDHWQDFRPLQQRYDWLYH
PHDQLQJIXOVROXWLRQVWRWKHQDWLRQDORSLRLG
HSLGHPLF
&LJQD KWWSVZZZFLJQDFRP
%HKDYLRUDOKHDOWKPDQDJHPHQWSODQVIRU28' KWWSVZZZFLJQDFRPDVVHWVGRFVDERXW
FLJQDRSLRLGIDTSGI
,PPHGLDWHUHOHDVHRSLRLGVZLWKRXWSULRUDXWKRUL]DWLRQIRUORQJHUWKDQGD\VRQO\LIWKH KWWSVFLJQDIRUKFSFRPSXEOLFFRQWHQWSGIFRYHUDJ
SUHVFULEHUDWWHVWVLWLVPHGLFDOO\QHFHVVDU\IRUDFXWHSDLQRUDWWHVWVWKDWWKHSDLQLVFKURQLF H3ROLFLHVSKDUPDF\SKBBFRYHUDJHSRVLWLRQFULWH
ULDB2SLRLGB7KHUDS\SGI
0XOWLSOHFULWHULDDOOQHHGWREHPHWWRFRYHUH[WHQGHGUHOHDVHGRSLRLGV KWWSVFLJQDIRUKFSFRPSXEOLFFRQWHQWSGIFRYHUDJ
R'LDJQRVLVRISDLQVHYHUHHQRXJKWRUHTXLUHGDLO\DURXQGWKHFORFNORQJWHUPRSLRLG H3ROLFLHVSKDUPDF\SKBBFRYHUDJHSRVLWLRQFULWH
WUHDWPHQW ULDB2SLRLGB7KHUDS\SGI
R)DLOXUHLQDGHTXDWHUHVSRQVHFRQWUDLQGLFDWLRQSHU)'$ODEHOLQWROHUDQFHRUQRWD
FDQGLGDWHIRUDPLQLPXPRQHZHHNWULDORILPPHGLDWHUHOHDVHRSLRLGV
R2SLRLGWKHUDS\PDQDJHPHQWDJUHHPHQWVLJQHGE\%27+WKHLQGLYLGXDODQGSUHVFULELQJ
FOLQLFLDQIRUWKHUDS\ORQJHUWKDQGD\V
+XPDQD KWWSVZZZKXPDQDFRP
+XPDQD3KDUPDF\6ROXWLRQVHQKDQFHPHQWVWRWKHRSLRLGXWLOL]DWLRQSURJUDPSRLQW KWWSDSSVKXPDQDFRPPDUNHWLQJGRFXPHQWVDVS"
RIVDOHHGLWVEDVHGRQWKHRSLRLGWKUHVKROGFDQFHUDQGKRVSLFHSDWLHQWVZLOOQRWJHWIODJJHG ILOH
$8SSHURSLRLGWKUHVKROGPXOWLSOHSURYLGHUV±SULRUDXWKRUL]DWLRQZLOOEHUHTXLUHG2SLRLG
GRVHVJUHDWHUWKDQPJ00('RU0XOWLSOHSURYLGHUV$1'SKDUPDFLHVDUHXVHGWRREWDLQ
WKHVDPHRUVLPLODURSLRLGPHGLFDWLRQVHUURUPHVVDJH2SLRLGWKUHVKROGH[FHHGHG
%/RZHURSLRLGWKUHVKROG±3KDUPDF\SURIHVVLRQDOVHUYLFHFRGHVDOORZHG2SLRLGGRVHV
EHWZHHQPJDQGPJ00('&XPXODWLYHPRUSKLQHHTXLYDOHQWGRVHH[FHHGVOLPLWV
3DJHRI+XPDQD&RUSRUDWH6RFLDO5HVSRQVLELOLW\5HSRUWGHVFULEHVLQLWLDWLYHV KWWSDSSVKXPDQDFRPPDUNHWLQJGRFXPHQWVDVS"
DGGUHVVLQJRSLRLGV ILOH
&HQWHQH KWWSVZZZFHQWHQHFRP
2SL(QG702SL(QGXVHVSURSULHWDU\EXVLQHVVLQWHOOLJHQFHWRROVWRLGHQWLI\DWULVNPHPEHUVIRU KWWSVZZZFHQWHQHFRPQHZVDGGUHVVLQJRSLRLG
SRWHQWLDORSLRLGPLVXVH2SL(QG3KDUPDF\$GYLVRU\*URXSHVWDEOLVKHGDSKDUPDF\RSLRLG HSLGHPLFKWPO
SROLF\GHVLJQHGWRSUHYHQWRSLRLGPLVXVHE\UHVWULFWLQJWKHGDLO\GRVDJHDQGPD[LPXPGD\V
RIXVHSUHVFULEHGIRUPHPEHUV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
.6SULRUDXWKRUL]DWLRQLQIRUPDWLRQIRU.DQ&DUH0HGLFDLG KWWSVZZZVXQIORZHUKHDOWKSODQFRPFRQWHQWGDP
6KRUW7HUP$FXWH3DLQ2SLRLG8VHUSDWLHQWVZKRKDYHUHFHLYHGRSLRLGSUHVFULSWLRQVIRU FHQWHQHVXQIORZHUSGIV.62SLRLG3$
GD\VLQDORRNEDFNSHULRGRIPRQWKV 3UHVHQWDWLRQSGI
±$QLQLWLDOILOOOLPLWRIGD\VXSSO\RI,5RSLRLG
±/LPLWRIILOOVXSWRGD\VXSSO\WRWDOLVDOORZHGZLWKLQDGD\ORRNEDFNSHULRGPXVWEH
QRPRUHWKDQDGD\VXSSO\SHUSUHVFULSWLRQ
±'DLO\GRVLQJOLPLWFDQQRWH[FHHG00(RU)'$PD[LPXPDSSURYHGRVH
±3ULRUDXWKRUL]DWLRQUHTXLUHGIRU
DOO(5RSLRLGSUHVFULSWLRQV
DQ\,5RSLRLGSUHVFULSWLRQVH[FHHGLQJWKHOLPLWVDERYH
&OLQLFDO3ROLF\IRU,OOLQL&DUH0HGLFDLGKDVVWLSXODWLRQVIRUWKHSUHVFULEHUV3URYLGHUPXVW KWWSVZZZLOOLQLFDUHFRPFRQWHQWGDPFHQWHQHSRO
VXEPLWGRFXPHQWDWLRQLQFOXGLQJVXFKLWHPVDVRIILFHFKDUWQRWHVODEUHVXOWVRURWKHUFOLQLFDO LFLHVSKDUPDF\
LQIRUPDWLRQVXSSRUWLQJWKDWPHPEHUKDVPHWDOODSSURYDOFULWHULD SROLFLHV&33012SLRLG$QDOJHVLFVSGI
/LVWVFULWHULDWKDWPXVWEHPHWIRUGLIIHUHQWWKHUDS\OHYHOVLQERWKWKHLQLWLDOVWDJHVIRU
6KRUWWHUPWKHUDS\
&DQFHUVLFNOHFHOORUSDOOLDWLYHFDUH
7UDQVLWLRQLQJIURPVKRUWWHUPWRORQJWHUPWKHUDS\DQGIRUFRQWLQXHGFDQFHUVLFNOHFHOORU
SDOOLDWLYHFDUHDQGORQJWHUPWKHUDS\
1HZFULWHULDDGGHGLQUHIHUWRIRUDQDEXVHGHWHUUHQWIRUPXODWLRQ$')PHGLFDO
MXVWLILFDWLRQVXSSRUWLQJ
LQDELOLW\WRXVHDJHQHULFQRQDEXVHGHWHUUHQWIRUPXODWLRQRIWKHVDPHDFWLYHLQJUHGLHQWDVWKH
UHTXHVWHGRSLRLG
&HQWHQH&RUSRUDWLRQ¶VSURYLGHUHGXFDWLRQHIIRUWVLQFOXGHDQLQIRUPDWLYHZHELQDUFDOOHG KWWSVGRZQORDGVFPVJRYILOHVKISSKISSRSLRLG
3KDUPDF\%X]]IRUERWKSUHVFULEHUVDQGSKDUPDFLVWVDERXWFRQFXUUHQWXVHRIRSLRLGVDQG ZKLWHSDSHUSGI
EHQ]RGLD]HSLQHVGLVWULEXWHGPDLOLQJVDQGQHZVOHWWHUVWRLQVWUXFWSURYLGHUVRQKRZWRHQUROOLQ
WKH&RQWUROOHG6XEVWDQFHV3UHVFULSWLRQ0RQLWRULQJ3URJUDP3'03'DWDPLQLQJDQGGDWD
DQDO\WLFVGULYHSURYLGHUDFFRXQWDELOLW\HIIRUWVDV&HQWHQHUHYLHZVWKH3'03DQGH
SUHVFULELQJDQGWKHQIODJVIRUUHYLHZWKHRXWO\LQJSUHVFULEHUVSKDUPDFLHVDQGPHPEHUVZKR
DUHGLVSHQVLQJRUXVLQJKLJKYROXPHVRIRSLRLGV
0ROLQD KWWSVZZZPROLQDKHDOWKFDUHFRP
2KLR0HGLFDLGSURYLGHULQIRUPDWLRQWKURXJK0ROLQDDVNVIRUSURYLGHUKHOS KWWSVZZZPROLQDKHDOWKFDUHFRPSURYLGHUVRKP
³:HUHTXHVW\RXVXSSRUWXVLQRXUHIIRUWVWRLPSDFWWKHRSLRLGHSLGHPLFE\ HGLFDLGGUXJ3')RSLRLGSGI
6HQGLQJPHPEHUUHIHUUDOVIRU&63&RRUGLQDWHG6HUYLFHV3URFHVVLI\RXVXVSHFWD
GDQJHURXVPLVKDQGOLQJRIFRQWUROOHGVXEVWDQFHSUHVFULSWLRQV
$JUHHWREHWKHSULPDU\ORFNLQSUHVFULEHUIRU&63PHPEHUV
$JUHHWROLPLWWKHPHPEHU¶VDELOLW\WRDFFHVVFRQWUROOHGPHGLFDWLRQVIURPPXOWLSOHVRXUFHV´
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
,QDOHWWHUWRWKH6HQDWH)LQDQFH&RPPLWWHH³3URYLGHUHGXFDWLRQLVDEDUULHUWRQRQ KWWSVZZZILQDQFHVHQDWHJRYLPRPHGLDGRF
SKDUPDFHXWLFDOWKHUDS\IRUFKURQLFSDLQWKDW0ROLQDLVZRUNLQJKDUGWRRYHUFRPH´ 0ROLQD+HDOWKFDUH
/DXQFKHGD3DLQ6DIHW\,QLWLDWLYHWKDWHQFRXUDJHVSURYLGHUVWRXWLOL]HWKH&'&¶V*XLGHOLQHIRU 6HQDWH)LQDQFH2SLRLG5HVSRQVH
3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQRIIHULQJDQGVXSSRUWLQJSURYLGHUHGXFDWLRQLQDUHDV 8SGDWHGSGI
VXFKDVRSLRLGDQGQDOR[RQHSUHVFULELQJSDLQPDQDJHPHQWDQGWKHGHYHORSPHQWRIWDSHU
SODQVIRUSDWLHQWVRQKLJKRSLRLGGRVHVRUFRPELQDWLRQV0DQ\RIWKHUHVRXUFHVDOORZIRU
HDUQLQJ&0(FRQWLQXLQJPHGLFDOHGXFDWLRQDQGLQFOXGHYLGHRZHELQDUVRQOLQHVHOISDFHG
FRXUVHVDQGHYHQPRELOHDSSOLFDWLRQVWKDWSURYLGHUVFDQDFFHVVRQWKHLUSKRQHVRUWDEOHWVWR
XVHDWWKHSRLQWRIFDUH
:DVKLQJWRQ6WDWHLPSOHPHQWHGDQRSLRLGSROLF\IRU0HGLFDLGVR0ROLQDLVVXHGD4 $ KWWSVZZZPROLQDKHDOWKFDUHFRPSURYLGHUVZDP
GRFXPHQWRQHRIWKHTXHVWLRQVIURPDSURYLGHUDQGLWVDQVZHUIROORZV HGLFDLGIRUPV3')RSLRLGZHELQDUTXHVWLRQVSGI
4:KDWLVWKHZLQGRZRIWLPHWKDWWKHGRVHVDSSOLHVWR",VWKDWGRVHVLQDGD\
SHULRGRUGD\V":KHQGRHVWKLVUHVHW"
$GRVHVSHUVFULSWFDQEHJLYHQWRDGXOWSDWLHQWIRUPXOWLSOHVFULSWVXQWLOWKHSDWLHQWKDV
KDGRSLRLGVIRUZHHNVGD\VLQDGD\SHULRG$WWKDWWLPHWKHDWWHVWDWLRQIRUPIRU
FKURQLFXVHLVUHTXLUHGSULRUWRFRQWLQXLQJRQRSLRLGWKHUDS\
%HFDXVHWKHFRPSDQ\ZRUNVZLWK0HGLFDLGWKH\KDYHPXOWLSOHVWDWHLQVWLWXWHGUXOHVWR KWWSVZZZKFDZDJRYDVVHWVELOOHUVDQG
DGGUHVVLQ:DVKLQJWRQVWDWHVKRUWDFWLQJRSLRLGVDSSURYHGIRUDFXWHXVHSHRSOHQRWWUHDWHG SURYLGHUVRSLRLGSROLF\SGI
IRUFDQFHUVLFNOHFHOORUSDOOLDWLYHFDUH/LPLWVDSSO\DVIROORZV
D)RUVKRUWDFWLQJRSLRLGVRQO\
L$TXDQWLW\OLPLWRIGRVDJHVSHUSUHVFULSWLRQIRUFKLOGUHQ\HDUVRIDJH>1RWH
3UHVFULEHULQGLFDWLQJ(;(037RYHUULGHVTXDQWLW\OLPLW@25
LL$TXDQWLW\OLPLWRIGRVDJHVSHUSUHVFULSWLRQIRUDGXOWV\HDUVRIDJH>1RWH
3UHVFULEHULQGLFDWLQJ(;(037RYHUULGHVWKHTXDQWLW\@$1'
E)RUERWKORQJDQGVKRUWDFWLQJRSLRLGV
L1RPRUHWKDQFDOHQGDUGD\VRIRSLRLGXVHZLWKLQDUROOLQJGD\SHULRG8VHRIDQ\
RSLRLGIRUPRUHWKDQGD\VZLWKLQDGD\SHULRGLVFRQVLGHUHGFKURQLFXVHRIRSLRLGVDQG
UHTXLUHVSULRUDXWKRUL]DWLRQDQGWKHUHDUHH[HPSWLRQVDQGH[SHGLWHGFODLPVIRUFKURQLFXVHUV
:HOO&DUH KWWSVZZZZHOOFDUHFRP
:HOO&DUHSURYLGHUQHZVOHWWHUIRU02&DUHUHFRPPHQGVWKH&'&JXLGHOLQHVVXFKDVQRQ KWWSVZZZZHOOFDUHFRPaPHGLD3')V1HZVOHWW
RSLRLGWKHUDS\ORZHVWHIIHFWLYHGRVHDQGSUHVFULSWLRQPRQLWRULQJ HUV0LVVRXUL3URYLGHUV3')V02B&$,'B35
2SLRLG7DVN)RUFHIURPLQWHUYHQWLRQIRUSDWLHQWVZLWKPJ0(',Q KWWSVEORJZHOOFDUHFRPKRZ
.HQWXFN\DWULVNPHPEHUVZHUHFRQQHFWHGWRRQHSKDUPDF\RQHKHDOWKFDUHSURYLGHUDQGD ZHOOFDUHLVDGGUHVVLQJWKHRSLRLGHSLGHPLF
FDUHPDQDJHUVSHFLDOL]HGLQVXEVWDQFHDEXVHWUHDWPHQW
+HDOWK1HW KWWSVZZZKHDOWKQHWFRP
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
0RVWVHDUFKHVMXVWKDYHPHPRVIURP&HQWHQHWKHFOLQLFDOSROLF\IRUWKHH[WHQGHGUHOHDVH KWWSVZZZKHDOWKQHWFRPVWDWLFJHQHUDOXQSURWHFW
/HYRUSKDQROUHIHUVWRFKURQLFSDLQDQG)'$JXLGHOLQHVIRUDGPLQLVWUDWLRQWKHUHRI HGKWPOQDWLRQDOSDBJXLGHOLQHVSGI
0DJHOODQ KWWSVZZZPDJHOODQKHDOWKFRP
,Q1RYHPEHU0DJHOODQ5[0DQDJHPHQWWKH3%0LPSOHPHQWHGDVWDQGDUGIRUPXODU\ KWWSVHQHUJ\FRPPHUFHKRXVHJRYVLWHVGHPRFUDWV
DQGXWLOL]DWLRQPDQDJHPHQWDSSURDFKFRQVLVWHQWZLWKWKH&'&JXLGHOLQHVOLPLWWKHGDLO\ HQHUJ\FRPPHUFHKRXVHJRYILOHVGRFXPHQWV7HVWL
GRVDJHRIRSLRLGVGLVSHQVHGEDVHGRQWKHVWUHQJWKRIWKHRSLRLGUHTXLUHWKHXVHRI,5 PRQ\6ULYDVWDYD
IRUPXODWLRQVEHIRUH(5RSLRLGIRUPXODWLRQVVWDUWLQJLQWKHILUVWTXDUWHURILWEHJDQGD\ 2SLRLG&ULVLV0HGLFDUH0HGLFDLG+
OLPLWVIRUQDwYHSDWLHQWVIRUFHUWDLQDFXWHSUHVFULSWLRQVHQUROODOORIRXUFOLHQWVXWLOL]LQJRXU HDULQJSGI
VWDQGDUGDSSURDFKLQDOORIWKHVHPHDVXUHVXQOHVVWKHFOLHQWGLUHFWVXVWRLPSOHPHQWDQ
DOWHUQDWLYHDSSURDFKHYHQIRUWKRVHFOLHQWVZKHWKHULWEHVWDWH0HGLFDLGSURJUDPV
FRPPHUFLDOKHDOWKSODQVRUHPSOR\HUVFKRRVLQJWRGHYHORSDQDOWHUQDWLYHRXUSUDFWLFHLVWR
FRQVXOWZLWKDQGUHFRPPHQGEHVWSUDFWLFHV±VXFKDVWKH&'&¶V*XLGHOLQH±VRRXU
FOLHQWVFDQPDNHIXOO\LQIRUPHGGHFLVLRQV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$SSHQGL['3ROLFLHVIURP7RS)LYH3KDUPDF\%HQHILW0DQDJHPHQW&RPSDQLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
3ROLFLHVIURP7RS)LYH3KDUPDF\%HQHILW0DQDJHPHQW&RPSDQLHV
1RWHV 6RXUFH
&96+HDOWK KWWSVZZZFDUHPDUNFRP
&DUHPDUN
6XPPDU\RIHIIRUWVZLWKRSLRLGV KWWSVZZZPDQDJHGKHDOWKFDUHH[HFXWLYHFRPPKH
DUWLFOHVIRXUSEPSURJUDPVSRLVHGUHLQRSLRLG
HSLGHPLFSDJH
)ROORZLQJWKH&'&*XLGHOLQHXSGDWHGVWDQGDUGVIRU&96&DUHPDUNPHPEHUVXQOHVVSULRU KWWSVZZZFYVKHDOWKFRPWKRXJKWOHDGHUVKLSFYV
DXWKRUL]DWLRQLVJLYHQLQFOXGH6HYHQGD\VXSSO\OLPLWVIRUDFXWHSDLQZKHUH KHDOWKHQWHUSULVHUHVSRQVHRSLRLGHSLGHPLFFYV
DSSURSULDWH0RUSKLQHPLOOLJUDPHTXLYDOHQW00(TXDQWLW\OLPLWVXQVSHFLILHG KHDOWKUHVSRQGVWRQDWLRQVRSLRLGFULVLV
,PPHGLDWHUHOHDVH,5EHIRUHH[WHQGHGUHOHDVH(5VWHSWKHUDS\
0DNLQJHOHFWURQLFSUHVFULELQJHDV\WRLQFUHDVHLWVXVHDQGOHYHUDJLQJLWVDFFHVVWRWKHHQWLUH KWWSVSD\RUVROXWLRQVFYVKHDOWKFRPLQVLJKWVKHOSLQ
SDWLHQWUHFRUGIRU3'03 JWRVROYHWKHHSLGHPLFRISUHVFULSWLRQGUXJDEXVH
:HOOPDUN%OXH&URVV%OXH6KLHOGPDQDJHGE\&DUHPDUN KWWSVZZZZHOOPDUNFRP3URYLGHU0HGLFDO'HQWD
2SLRLGVUHTXHVWHGZLOOEHFRYHUHGZLWKSULRUDXWKRUL]DWLRQZKHQWKHIROORZLQJFULWHULDDUH O3KDUP3KDUPDF\GRFV2SLRLGVB,5B$FXWHB3DLQB'
PHW XUDWLRQB/LPLWBZLWKB00(B/LPLWBDQGB3RVWB/LPLWB
7KHUHTXHVWHGGUXJLVEHLQJSUHVFULEHGIRUSDLQDVVRFLDWHGZLWKFDQFHUVLFNOHFHOOGLVHDVH 3ROLF\SGI
DWHUPLQDOFRQGLWLRQRUSDLQEHLQJPDQDJHGWKURXJKKRVSLFHRUSDOOLDWLYHFDUH25
7KHSDWLHQWFDQVDIHO\WDNHWKHUHTXHVWHGGRVHEDVHGRQWKHLUKLVWRU\RIRSLRLGXVH$1'
7KHSDWLHQWKDVEHHQHYDOXDWHGDQGWKHSDWLHQWZLOOEHPRQLWRUHGUHJXODUO\IRUWKH
GHYHORSPHQWRIRSLRLGXVHGLVRUGHU$1'
7KHUHTXHVWHGGUXJLVEHLQJSUHVFULEHGIRUPRGHUDWHWRVHYHUH&+521,&SDLQZKHUHXVH
RIDQRSLRLGDQDOJHVLFLVDSSURSULDWH>1RWH&KURQLFSDLQLVJHQHUDOO\GHILQHGDVSDLQWKDW
W\SLFDOO\ODVWVJUHDWHUWKDQPRQWKV@$1'
R7KHSDWLHQW¶VSDLQZLOOEHUHDVVHVVHGLQWKHILUVWPRQWKDIWHUWKHLQLWLDOSUHVFULSWLRQRUDQ\
GRVHLQFUHDVH$1'HYHU\PRQWKVWKHUHDIWHUWRHQVXUHWKDWFOLQLFDOO\PHDQLQJIXO
LPSURYHPHQWLQSDLQDQGIXQFWLRQRXWZHLJKULVNVWRSDWLHQWVDIHW\25
R7KHSDWLHQWUHTXLUHVH[WHQGHGWUHDWPHQWEH\RQGGD\VIRUPRGHUDWHWRVHYHUH$&87(
SDLQZKHUHXVHRIDQRSLRLGDQDOJHVLFLVDSSURSULDWH
&RYHUDJHLVSURYLGHGZLWKRXWSULRUDXWKRUL]DWLRQIRUSDWLHQWVQRWLGHQWLILHGDVSRWHQWLDO
ILUVWILOOVIRUGD\RUGD\VXSSO\RILPPHGLDWHUHOHDVHRSLRLGVIRUDTXDQWLW\WKDW
FRUUHVSRQGVWR00(GD\&RYHUDJHIRUTXDQWLWLHVWKDWFRUUHVSRQGWR00(GD\
IRUDGD\RUGD\VXSSO\LVSURYLGHGWKURXJKSULRUDXWKRUL]DWLRQZKHQFULWHULDIRU
DSSURYDODUHPHW
([SUHVV KWWSVZZZH[SUHVVVFULSWVFRP
6FULSWV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
,QLWLDOILOOIRUDGXOWVLQLWLDWLQJRSLRLGWKHUDS\LVOLPLWHGWRDGD\V¶VXSSO\IRUPHPEHUV¶ KWWSVODEH[SUHVVVFULSWVFRPODELQVLJKWVGUXJ
ILUVWILOOVUHTXLULQJDSULRUDXWKRUL]DWLRQWRH[FHHGGD\V¶VXSSO\LQDGD\SHULRG VDIHW\DQGDEXVHRXUIRFXVRSLRLGUHFRYHU\DQG
OLPLWLQJWKHPRUSKLQHHTXLYDOHQWGRVLQJWRPRUSKLQHPLOOLJUDPHTXLYDOHQW00(IRU DEXVHSUHYHQWLRQ
SDWLHQWVVWDUWLQJRQRSLRLGV([LVWLQJXVHUVDUHOLPLWHGWR00(XQOHVVWKH\UHFHLYHD
SULRUDXWKRUL]DWLRQIRUDKLJKHUGRVDJHSHGLDWULFSDWLHQWVDUHOLPLWHGWRDGD\V¶VXSSO\IRU
HDFKRIWKHLUILUVWILOOVUHTXLULQJDSULRUDXWKRUL]DWLRQWRH[FHHGGD\V¶VXSSO\LQD
GD\SHULRG
$GYDQFHG2SLRLG0DQDJHPHQWDWWKHSKDUPDF\)LUVWWLPHXVHUVRIVKRUWDFWLQJRSLRLGV KWWSVODEH[SUHVVVFULSWVFRPODELQVLJKWVGUXJ
DUHUHVWULFWHGWRDQLQLWLDOILOORIVHYHQGD\V
VXSSO\XQOHVVSDWLHQWVKDYHDKLVWRU\RI VDIHW\DQGDEXVHFKDQJLQJWKHZD\ZHILJKWWKH
FKURQLFSDLQUHTXLULQJRSLRLGWKHUDS\KDYHFDQFHURUUHFHLYHSDOOLDWLYHFDUH(QKDQFHG RSLRLGHSLGHPLF
3ULRU$XWKRUL]DWLRQHQFRXUDJHVVDIHVWDUWVIRUDOOORQJDFWLQJRSLRLGV0RUSKLQH0LOOLJUDP
(TXLYDOHQW'RVH00('HGLWJLYHVSKDUPDF\YLVLELOLW\WRKLJKGRVHVRIPRUSKLQH
HTXLYDOHQWGRVLQJDOHUWLQJWKHSKDUPDF\DWGRVHVRI00('DQG00('SULRU
DXWKRUL]DWLRQUHTXLUHGIRUPHPEHUVDFFXPXODWLQJTXDQWLWLHVRIRSLRLGPHGLFDWLRQ
H[FHHGLQJPJ00('FRQFXUUHQWGUXJXWLOL]DWLRQUHYLHZ&'85HQVXUHVRSLRLG
SUHVFULSWLRQVDUHDSSURSULDWHPHGLFDOO\QHFHVVDU\DQGXQOLNHO\WRUHVXOWLQDGYHUVHPHGLFDO
FRQVHTXHQFHV&'85SURYLGHVUHDOWLPHDOHUWVWRGLVSHQVLQJSKDUPDFLVWVWRSUHYHQW
DGYHUVHHYHQWV
6XPPDU\RIHIIRUWV KWWSVZZZPDQDJHGKHDOWKFDUHH[HFXWLYHFRPPKH
DUWLFOHVIRXUSEPSURJUDPVSRLVHGUHLQRSLRLG
HSLGHPLFSDJH
2SWXP5[ KWWSVRSWXPU[FRP
'RFXPHQWGHVFULELQJWKHQHHGWREHWWHUPDQDJHRSLRLGSUHVFULELQJ KWWSVZZZRSWXPFRPUHVRXUFHVOLEUDU\GHIOHFWLQ
JWKHFXUYHKWPO"V U[RSLRLG
'RFXPHQWGHVFULELQJWKHQHHGWREHWWHUPDQDJHSDLQ KWWSVZZZRSWXPFRPUHVRXUFHVOLEUDU\WKH
SUREOHPRISDLQKWPO"V U[RSLRLG
2SWXP5[2SLRLG5LVN0DQDJHPHQW6WUDWHJLHV3UHYHQWLRQ HGXFDWLRQ0LQLPL]LQJ KWWSVZZZRSWXPFRPUHVRXUFHVOLEUDU\PDQDJLQ
HDUO\H[SRVXUH5HGXFLQJLQDSSURSULDWHVXSSO\7UHDWLQJWKHDWULVNKLJKULVN JRSLRLGFRVWVPDQDJLQJULVNVKWPO"V U[RSLRLG
6XSSRUWLQJFKURQLFSRSXODWLRQVDQGWKRVHLQUHFRYHU\
(GLWVIODJSHRSOH
VILUVWXVHVRIRSLRLGVIROORZLQJ&'&JXLGHOLQHDOJRULWKPVFDOFXODWHDW KWWSVZZZRSWXPFRPUHVRXUFHVOLEUDU\PDQDJLQ
SRLQWRIFODLPVSURFHVVLQJWKHH[DFW00('IRUHYHU\RSLRLGRQWKHPDUNHW,QVWLWXWHG JRSLRLGFRVWVPDQDJLQJULVNVKWPO"V U[RSLRLG
H[SDQGHGFRQFXUUHQWGUXJXWLOL]DWLRQUHYLHZ&'85HGLWVDQGSODQGHVLJQHGLWVDWWKH
SRLQWRIVHUYLFHZKHQDSUHVFULSWLRQLVLVVXHGIRUDQRSLRLGWKDWLVLQDSSURSULDWHIRUDQ\
UHDVRQ±WRRPDQ\SLOOVGRVHWRRVWURQJDSDWLHQWZKRLVDOUHDG\RQEHQ]RGLD]HSLQHVD
SDWLHQWRQSUHQDWDOYLWDPLQVWRSUHYHQWQHRQDWDODEVWLQHQFHV\QGURPHDSDWLHQWDFWLYHO\
LQ0$7IRU28'7KH\KDYHSXWLQSODFHPRQLWRULQJV\VWHPVWKDWSUHYHQW28'SDWLHQWVLQ
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
0$7SURJUDPVIURPJHWWLQJRWKHURSLDWHSUHVFULSWLRQVWKH\DOVRDOHUWSURYLGHUVZKHQ
RXWSDWLHQWVVWRSDGKHULQJWR0$7DQGOHYHUDJHSRLQWRIVDOHSURJUDPVWRORRNIRU
PHPEHUVZKRPLJKWUHODSVHDIWHURQHRIWKHVHSURJUDPV&'85VFUHHQVLQFRPLQJFODLPV
WKURXJKDPHPEHUFODLPVSURILOHIRURSLRLGXVHDIWHUDSHUVRQKDVFRPSOHWHG0$7
0HPEHUVZLWKQRRSLRLGLQWKHLUPRVWUHFHQWGD\FODLPVKLVWRU\ZLOOEHOLPLWHGWRD KWWSVSURIHVVLRQDOVRSWXPU[FRPFRQWHQWGDPRSW
PD[LPXPRI00('DQGWZRGD\VXSSOLHVZLWKLQDGD\WLPHIUDPH0HPEHUVZKR XPSURIHVVLRQDO
DUHQRWQHZWRRSLRLGVZLOOEHOLPLWHGWRDPD[LPXPRI00('DQGWRILOOVZLWKLQD RSWXPU[UHVRXUFHVSGIV4XDQWLW\/LPLW&KD
GD\WLPHIUDPH QJHVRQ6KRUW$FWLQJ2SLRLGVB3URY
LGHU3RUWDOBYBYISGI
$UWLFOHOLVWLQJ3%0HIIRUWV KWWSVZZZPDQDJHGKHDOWKFDUHH[HFXWLYHFRPPKH
DUWLFOHVIRXUSEPSURJUDPVSRLVHGUHLQRSLRLG
HSLGHPLF
0HGLPSDFW KWWSVZZZPHGLPSDFWFRP
SDJHGRFXPHQWVXPPDUL]LQJWKHLUHIIRUWVDQGOD\LQJRXWDJRDOWRUHGXFHRSLRLG KWWSVSEPPHGLPSDFWFRPGRFXPHQWV
³RYHUXWLOL]DWLRQ´E\ 0DQDJLQJ2SLRLG2YHUXWLOL]DWLRQ&KDOOHQJHV
SGIHFGDDIDGGDHG
3URJUDPDSSOLHVSRLQWRIVDOHPHVVDJLQJGLUHFWO\WRWKHSKDUPDF\7KLVLVEDVHGRQ00(' KWWSVSEPPHGLPSDFWFRPGRFXPHQWV
WKUHVKROGVWKDWDUHFDOFXODWHGIRUDVSHFLILFGUXJDQGGRVH6RIWHGLWVPD\EHRYHUULGGHQE\ 0HG,PSDFW&DVH6WXG\BRQB&RPEDWLQJBWKHB2SL
SKDUPDFLVWVRUYLDDFOLQLFDOUHYLHZKDUGHGLWVUHMHFWFODLPVPHHWLQJRUH[FHHGLQJWKH RLG&ULVLVSGIFIIGFEGEGE
KLJKHVWWKUHVKROGDQGFDQRQO\EHRYHUULGGHQDIWHUFOLQLFDOUHYLHZ FGHE
6DPSOHRIDSULRUDXWKRUL]DWLRQIRUP KWWSVPSPHGLPSDFWFRPEUDQGFRQWHQWSURYLGHU2
*%030HG,PSDFW6WDQGDUG05)BZLWK
2*%ORJRSGI
3DWLHQWLQIRUPDWLRQRQRSLRLGHGLWV6XPPD&DUH70KDVLPSOHPHQWHGWKHIROORZLQJRSLRLG KWWSVZZZVXPPDFDUHFRP
HGLWV(QKDQFHG2SLRLG&XPXODWLYH'RVLQJ7KLVOLPLWLVEDVHGRQ00('$QRSLRLG PHGLDSURMHFWVXPPDFDUHZHEVLWHGRFXPHQW
SUHVFULSWLRQZLOOEHGHQLHGDWWKHSKDUPDF\LIWKHWRWDO00('LVJUHDWHUWKDQ7KLV OLEUDU\IRUPXODU\GRFXPHQWVU[IRUPXODU\
PHDQVWKDWPHPEHUVZLOOQHHGWRJHWDSSURYDOIURP6XPPD&DUHWRILOOWKHVHRSLRLG PDUNHWSODFHSGI
SUHVFULSWLRQV'D\V
6XSSO\/LPLW(GLW,IWKHFRXUVHRIRSLRLGWUHDWPHQWFRQWLQXHVIRU
PRUHWKDQGD\VWKHRSLRLGSUHVFULSWLRQZLOOEHGHQLHGDWWKHSKDUPDF\,IDPHPEHU
QHHGVPRUHWKDQGD\VRIWKHUDS\DSSURYDOZLOOEHUHTXLUHGIURP6XPPD&DUHWRILOOWKH
RSLRLGSUHVFULSWLRQ
3ULPH KWWSVZZZSULPHWKHUDSHXWLFVFRP
7KHUDSHXWLFV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
3ULPHXVHVDFRQWUROOHGVXEVWDQFH&6VFRUHWKDWIODJVSHRSOHOLNHO\WRDEXVHDOHUWVJRWR KWWSVZZZSULPHWKHUDSHXWLFVFRPFRQWHQWGDPFR
SKDUPDFLHVDQGSUHVFULEHUVLQRUGHUWRQRWLI\WKHPRISRWHQWLDOSUREOHPV USRUDWH'RFXPHQWV1HZVURRP3UHVVUHOHDVHVU
HOHDVHRSLRLGHSLGHPLFSGI
3ULPHSXEOLVKHGLWVDOJRULWKPWRGHWHUPLQH&6VFRUH KWWSVZZZMPFSRUJGRLIXOOMPFS
$QRXWOLHUKDVDQDYHUDJH00('RIPJRUKLJKHURUWKH\UHFHLYHRSLRLGVIURPPRUH KWWSVZZZSULPHWKHUDSHXWLFVFRPHQQHZVSULPH
WKDQWKUHHSUHVFULEHUVDQGPRUHWKDQWKUHHSKDUPDFLHVRUWKH\PLJKWJHWWKHLURSLRLGV LQVLJKWVLQVLJKWVLQVLJKWVRSLRLGRXWOLHUVKWPO
IURPPRUHWKDQILYHSUHVFULEHUVUHJDUGOHVVRIQXPEHURISKDUPDFLHVRYHUDVL[PRQWK
SHULRG
$UWLFOHVXPPDUL]LQJHIIRUWV KWWSVZZZPDQDJHGKHDOWKFDUHH[HFXWLYHFRPPKH
DUWLFOHVIRXUSEPSURJUDPVSRLVHGUHLQRSLRLG
HSLGHPLFSDJH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$SSHQGL[(3ROLFLHVIURP7RS7HQ+HDOWKFDUH6\VWHPV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
3ROLFLHVIURP7RS7HQ+HDOWKFDUH6\VWHPV
1RWHV 6RXUFH
+&$ KWWSVKFDKHDOWKFDUHFRP
(QKDQFHG6XUJLFDO5HFRYHU\(65LVDPXOWLPRGDODSSURDFKWRSDLQPDQDJHPHQWXVLQJ KWWSVQDPHGXZSFRQWHQWXSORDGV+&$
SUHLQWUDDQGSRVWRSHUDWLYHLQWHUYHQWLRQVWRRSWLPL]HRXWFRPHV(PHUJHQF\'HSDUWPHQW +HDOWKFDUH&RPPLWPHQW6WDWHPHQWSGI
±$OWHUQDWLYHWR2SLRLGV$/72SURJUDPLVDPXOWLPRGDODSSURDFKWRSDLQFRQWURO
SURPRWLQJQRQRSLRLGWUHDWPHQWDVILUVWOLQHWKHUDS\DQGSDWLHQWHGXFDWLRQDERXWRSLRLG
DGGLFWLRQ
6XPPDU\RIHIIRUWVE\+&$IURPDFRQIHUHQFHSUHVHQWDWLRQ KWWSVKLPVVRUJVLWHVKLPVVILOHVKDQG
RXWVKDQGRXWSGI
3UHVXUJHU\SURWRFROWRKHOSPDQDJHSDWLHQWH[SHFWDWLRQVRISDLQ8QGHUWKHQHZSURWRFRO KWWSVZZZEHFNHUVKRVSLWDOUHYLHZFRPRSLRLGVKF
SK\VLFLDQVZLOOWHOOSDWLHQWVWKH\³ZLOOWUHDWWKHSDLQEXW\RXVKRXOGH[SHFWWKDW\RX
UH DZDUQVSDWLHQWVWKH\ZLOOIHHOSDLQLQHIIRUWWR
JRLQJWRKDYHVRPHSDLQ$QG\RXVKRXOGDOVRXQGHUVWDQGWKDWWDNLQJDQDUFRWLFVRWKDW\RX FXUERSLRLGXVHWKLQJVWRNQRZKWPO
KDYHQRSDLQUHDOO\SXWV\RXDWULVNRIEHFRPLQJDGGLFWHGWRWKDWQDUFRWLF´0LFKDHO
6FKORVVHU0'&02IRU+&$
$VGHVFULEHGE\0LFKDHO6FKORVVHU0'0%$)$$16FKLHIPHGLFDORIILFHU&02 KWWSVKHDOWKWUXVWSJFRPFOLQLFDO
+&$1DWLRQDO*URXSDQGYLFHSUHVLGHQW&OLQLFDO([FHOOHQFHDQG6XUJLFDO6HUYLFHVDW SHUIRUPDQFHPHPEHUVLQDFWLRQ
+&$WKHFRQYHUVDWLRQTXLFNO\VKLIWHGWR³ZD\VWRFKDQJHWKHSHUYDVLYHDQGGDPDJLQJ
FXOWXUHRIUHIOH[LYHSUHVFULELQJIRUSDLQPDQDJHPHQWWKDWH[LVWVDPRQJPDQ\SURYLGHUV
DFURVVWKHFRXQWU\´
$VFHQVLRQ KWWSVDVFHQVLRQRUJ
+HDOWK
3DLQ0DQDJHPHQW,QLWLDWLYHGHOLYHUVDIHFRPSDVVLRQDWHHYLGHQFHEDVHGSDLQPDQDJHPHQW KWWSVZZZQGKLRUJILOHV,QURDGV
LQDFFRUGDQFHZLWKQDWLRQDOJXLGHOLQHV B$JDLQVWB$GGLFWLRQBBSULQWBTXDOLW\SGI
3DLQ0DQDJHPHQW*RDOVVWDQGDUGL]HHYLGHQFHEDVHGSDLQDVVHVVPHQWWRROVIRUDOO
SDWLHQWVLQFUHDVHDZDUHQHVVDQGXVHRILQWHJUDWLYHWKHUDSLHVIRUSDLQPDQDJHPHQW
UHFRPPHQGHYLGHQFHEDVHGSUDFWLFHVROXWLRQVLQDOLJQPHQWZLWKQDWLRQDOJXLGHOLQHVIRU
DFXWHFKURQLFDQGKRVSLWDOEDVHGRUGHUVHWVDFURVVWKHFRQWLQXXPRIFDUH
3DLQ0DQDJHPHQW0LQLPXP6WDQGDUGVGRFXPHQWSDLQDVVHVVPHQWXVLQJWKHDSSURSULDWH
DVVHVVPHQWWRROIRUWKHSDWLHQWDFFHVVORFDOSUHVFULSWLRQGUXJPRQLWRULQJSURJUDPSULRUWR
SUHVFULELQJRSLRLGVDVVHVVRSLRLGULVNSULRUWRSUHVFULELQJRSLRLGVDOOLQSDWLHQWVPXVWKDYH
GRFXPHQWHGSDLQDVVHVVPHQWVFRUHDQGDFFHSWDEOHOHYHORISDLQZLWKLQKRXUVRI
DGPLVVLRQDQGRQFHDGD\DIWHUWKHLQLWLDODVVHVVPHQWGRQRWRUGHU;UD\05,DQG&7IRU
DFXWHORZEDFNSDLQZLWKRXWSRVLWLYHGLIIHUHQWLDWLRQIDFWRUVRUGHUDVFKHGXOHGQRQRSLRLG
GUXJVLIWKHUHDUHQRFRQWUDLQGLFDWLRQVZKHQRSLRLGVDUHSUHVFULEHGRIIHUSDWLHQWV
LQWHJUDWLYHWKHUDS\VROXWLRQVIRUSDLQPDQDJHPHQWSUHVFULEHQRPRUHWKDQGD\VRI
RSLRLGVZKHQLQGLFDWHGIRUDFXWHSDLQHGXFDWHSDWLHQWVRQKRZWRGLVSRVHRIXQXVHG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
PHGLFDWLRQHQVXUHEDVHOLQHDQGDQQXDOXULQHGUXJVFUHHQRQFKURQLFSDWLHQWVZLWKDQ
RSLRLGSDWLHQWDJUHHPHQWFRQWUDFW
&RPPRQ6SLULW KWWSVFRPPRQVSLULWRUJ
+HDOWK KWWSVZZZFDWKROLFKHDOWKLQLWLDWLYHVRUJ
0HUJHURI
KWWSVZZZGLJQLW\KHDOWKRUJ
&DWKROLF
+HDOWK
,QLWLDWLYHVDQG
'LJQLW\
+HDOWK
&+,LQWHUQHWVHDUFKVKRZHGDFRXSOHRISURJUDPVIRU28'$'LJQLW\SURJUDPLQ19IRU KWWSVRLJKKVJRYRDVUHSRUWVUHJLRQB)
SUHQDWDOWUHDWPHQWZDVPHQWLRQHGLQLWVRYHUYLHZRIVWDWXWHV&RPPRQ6SLULW+HDOWKLVQHZ DFWVKHHWSGI
PHUJHU
,QLWLDWLYHVDW&+,)UDQFLVFDQ+HDOWKKDYHEHHQJHDUHGWRZDUGOLPLWLQJWKHDPRXQWRI KWWSVZZZFDWKROLFKHDOWKLQLWLDWLYHVRUJHQZKR
RSLRLGVSUHVFULEHGRYHUDOO³7KURXJKHGXFDWLRQJXLGHOLQHVDQGE\VKDULQJEHVWSUDFWLFHV ZHDUHEORJVUHOLHYLQJSDLQUHOLHYHUFULVLVKWPO
ZH¶YHKHOSHGWRVWDQGDUGL]HWKHQXPEHURISLOOVJLYHQWRDVLQJOHSHUVRQWKXVOLPLWLQJ
DEXVH:H¶YHVHWXSDGDWDEDVHWRGHWHUPLQHZKHUHWKHPRVWSLOOVDUHEHLQJSUHVFULEHGVR
ZHFDQDOVRDVVHVVKRZWRUHGXFHWKRVHQXPEHUV´
7ULQLW\+HDOWK KWWSVZZZWHQHWKHDOWKFRP
7ULQLW\FKDUWHUHGLWVRSLRLGVWHZDUGVKLSSURJUDPLQODWH,WZDVSDUWO\VSXUUHGE\D ,QWHUYLHZZLWK&KULVWRSKHU0DQWKH\93&KLHI
EDGSDWLHQWRXWFRPHUHODWHGWRIDLOXUHWRLGHQWLI\SDWLHQWULVN7KHUHLVDVWHHULQJJURXSIRU 3KDUPDF\,QIRUPDWLFV2IILFHU
WKHV\VWHPZLGHHIIRUWSOXVSDUWQHUVDWHDFKKRVSLWDO7KH\SURGXFHDPRQWKO\QHZVOHWWHU
DQGKDYHPRQWKO\PHHWLQJV
7KHKRPHRIILFHPDNHVUHFRPPHQGDWLRQVIRUSURJUDPVWRKRVSLWDOVLQWKHV\VWHPEXWWKHUH ,QWHUYLHZZLWK&KULVWRSKHU0DQWKH\93&KLHI
LVYHU\OLWWOHDELOLW\WRV\VWHPDWLFDOO\LPSOHPHQWWKRVHSURJUDPVRUWUDFNWKHLURXWFRPHVGXH 3KDUPDF\,QIRUPDWLFV2IILFHU
WRKDYLQJPXOWLSOH(+5V\VWHPVLQSODFH(SLFZLOOEHUROOLQJRXWV\VWHPZLGHLQDFRXSOH
RI\HDUV
2IILFLDOO\WKHLUVWDQFHLVWKDWWKH\ZLOOSURYLGHQRPRUHWKDQDGD\VXSSO\RIRSLRLGVWR ,QWHUYLHZZLWK&KULVWRSKHU0DQWKH\93&KLHI
RSLRLGQDwYHSDWLHQWVZLWKDFXWHSDLQXQOHVVVWDWHODZKDVVKRUWHUOLPLWV7KH\UHFRPPHQG 3KDUPDF\,QIRUPDWLFV2IILFHU
WKHXVHRIWKH3'03DQGKDYHKDUGZLUHGLWLQWRVRPHRIWKHLUKRVSLWDOV
(+5V7KHUHDUH
V\VWHPOHYHOUHSRUWVRQLQGLYLGXDOSURYLGHUSUHVFULELQJIRUWKRVHKRVSLWDOVXVLQJ&HUQHU
V\VWHPV7KH\ZRXOGOLNHWREXLOGDOHUWVLQWKH(+5IRU28'GLDJQRVLVDQGDULVN
HYDOXDWLRQIRUGLVFKDUJHVFULSWVRIFRQWUROOHGVXEVWDQFHV
3URYLGHQFH6W KWWSVZZZSVMKHDOWKRUJ
-RVHSK+HDOWK
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
0DULQRFKLHIPHGLFDOLQIRUPDWLFVRIILFHU&0,2GLVFXVVHGDFFHVVWRSDWLHQWLQIRUPDWLRQ KWWSVKHDOWKV\VWHPFLRFRPPDULQR
PXOWLSOHVWDWHSROLFLHVDQGJXLGHOLQHVDQGXVHRIPXOWLSOHHOHFWURQLFPHGLFDOUHFRUGV FPLRSURYVWMRVHSKFKDSWHU
(055HJDUGLQJPDQDJLQJSDWLHQWV
H[SHFWDWLRQVDERXWSDLQSRVWVXUJHU\KHVWDWHG³7KH
SUREOHPLV\RXKDYHWRUHDOO\WLJKWO\PDQDJHLW:LWKLQWKH(05ZHEXLOWZKDWDUHFDOOHG
µPXOWLPRGDOSDLQVHWV¶:KDWWKDWPHDQVLVZKHQ\RX¶UHILUVWLQVHYHUHSDLQ\RXVKRXOGGR
WKLVEXWWKHQZHVKRXOGUDSLGO\ZHDQ\RXWRVRPHWKLQJHOVH6RPD\EHLWVWDUWVZLWK
QDUFRWLFVWKHQORQJDFWLQJ16$,'VDQGWKHQVRPHWKLQJDVVLPSOHDV7\OHQRORU
LEXSURIHQ´
/LQNWRSODQWRXVHRQH(05WKH\ZHUHXVLQJWKUHHGLIIHUHQW(SLFV\VWHPVIRUSDWLHQW KWWSVZZZSVMKHDOWKRUJLQLWLDWLYHVQXUVLQJ
UHFRUGV LQVWLWXWHQHZVHSLFXSJUDGHDOLJQPHQW
RSWLPL]DWLRQ
7HQHW KWWSVZZZWHQHWKHDOWKFRP
+HDOWKFDUH
³+LJKDOHUW´PHGLFDWLRQSROLF\PHQWLRQVRSLRLGVEXWQRWVSHFLILFWRWKHP0RVWO\MXVW KWWSVZZZWHQHWKHDOWKFRPGRFVGHIDXOW
DERXWGRXEOHFKHFNLQJZKHQDGPLQLVWHULQJ VRXUFHPHHWLQJTXDOLW\VWDQGDUGVFR
LQGHSHQGHQWGRXEOHFKHFNKLJKDOHUW
PHGLFDWLRQVSGI"VIYUVQ FGEB
&RPPXQLW\ KWWSZZZFKVQHW
+HDOWK
6\VWHPV
)URPWKHVHDUFKHVLWORRNVOLNHWKH\RQO\PDQDJHKRVSLWDOVEXWWKHZHEVLWHLVRXWRIGDWH,W KWWSVZZZFKVQHWVHUYLQJ
KDVOLQNVWRORFDWLRQVEXWWKH\GRQRWZRUNVHHQH[WFHOO FRPPXQLWLHVORFDWLRQV
7KLVVSHDNVRIDIILOLDWHV'LGQRWOLQNWRDQ\EXWLWDOVRVSRNHRI4XRUXPZKRVHZHEVLWH KWWSVZZZFKVQHWFRPSDQ\RYHUYLHZ
GRHVOLQNWRLQGLYLGXDOKRVSLWDOV'RHVQRWVHHPWRKDYHDQH[SOLFLWSXEOLFSROLF\RQ
RSLRLGV
8QLYHUVLW\RI KWWSVZZZXFRSHGXXFKHDOWK
&DOLIRUQLD
+HDOWK
3URYLGHEHWWHUJXLGDQFHIRUSULPDU\FDUHSURYLGHUV8&'DYLVXSGDWHGSROLFLHVWRIROORZ KWWSVKHDOWKXFVGHGXQHZVIHDWXUHV3DJHV
&'&JXLGHOLQHV RWF6L[:D\V8&6DQ'LHJR+HDOWKLV
0LQLPL]HRSLRLGSUHVFULSWLRQV8&6DQ'LHJR+HDOWK¶VSDLQPDQDJHPHQWWHDPKDVUH &RPEDWWLQJWKH2SLRLG&ULVLVDVS[
ZULWWHQWKHSDLQRUGHUVHWVWRHPSKDVL]HQRQRSLRLGDQGPXOWLPRGDOSDLQPDQDJHPHQW
RSWLRQV
(QVXUHSUHVFULEHUVFKHFNWKH³GRFWRUVKRSSLQJ´GDWDEDVH$OO&DOLIRUQLDKHDOWKFDUH
SURYLGHUVDUHUHTXLUHGWRILUVWFKHFNWKH&RQWUROOHG6XEVWDQFH8WLOL]DWLRQ5HYLHZDQG
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
(YDOXDWLRQ6\VWHP&85(6VLWHDGDWDEDVHPDLQWDLQHGE\WKH&DOLIRUQLD'HSDUWPHQWRI
-XVWLFH
$UPSDWLHQWVZLWKPRUHLQIRUPDWLRQ
3URYLGHDSODFHIRUVHFXUHRSLRLGGLVSRVDO0HG6DIH70²DFROOHFWLRQELQIRUWKH
GLVSRVDORIXQXVHGXQQHHGHGSUHVFULSWLRQRSLRLGV
,PSURYHDFFHVVWRPHGLFDWLRQDVVLVWHGDGGLFWLRQWUHDWPHQW8&6DQ'LHJR+HDOWKLV
H[SDQGLQJLWVDGGLFWLRQFOLQLFWRKHOSSULPDU\FDUHSURYLGHUVZRPHQ¶VKHDOWKFDUH
SURYLGHUVLQWHUQDOPHGLFLQHSK\VLFLDQVDQGRWKHUVSHFLDOLVWVLGHQWLI\SDWLHQWVZLWKRSLRLG
XVHGLVRUGHUV
8&6DQ'LHJRJHWVDFFHVVWRWKH%ULGJH3URJUDP0$7WUHDWPHQW KWWSVKHDOWKXFVGHGXQHZVUHOHDVHV3DJHV
SURJUDPJLYHVXFVDQGLHJRKHDOWKQHZ
UHVRXUFHVWRFRPEDWRSLRLGHSLGHPLFDVS[
8&'DYLVSURJUDPEHLQJH[SDQGHGWRRWKHUKRVSLWDOVWKH6XEVWDQFH$EXVH1DYLJDWRU KWWSVKHDOWKXFGDYLVHGXSXEOLVKQHZVQHZVURRP
681SURJUDPWUDLQVSK\VLFLDQVRQEHVWSUDFWLFHVRQSUHVFULELQJEXSUHQRUSKLQHDXQLTXH
VFKHGXOH,,,RSLRLGWKDWEORFNVWKHHXSKRULFHIIHFWVRIKHURLQUHGXFLQJGRSHVLFNQHVVDQG
FUDYLQJDVSDWLHQWVSXUVXHORQJWHUPUHFRYHU\
2SWXP5[SULRUDXWKRUL]DWLRQSROLFLHVIURP8&23OLQNV KWWSVZZZXFRSHGXXFVKLSBILOHVDOOFDPSXV
ILOHVSKDUPDF\RSWXPU[SUHPLXPH[FOXVLRQOLVW
MXO\SGI
$XQLYHUVDOSROLF\IRURSLRLGVIRUWKHZKROHRI8&+HDOWKV\VWHPZDVQRWIRXQG
8QLYHUVDO KWWSVZZZXKVLQFFRP
+HDOWK
6HUYLFHV
,QIRUPDWLRQZDVQRWIRXQGRQOLQH
.DLVHU KWWSVKHDOWK\NDLVHUSHUPDQHQWHRUJ
3HUPDQHQWH
.DLVHU3HUPDQHQWH¶VIRFXVRQSUHVFULELQJWKHORZHVWHIIHFWLYHGRVH KWWSVDERXWNDLVHUSHUPDQHQWHRUJRXUVWRU\RXU
FDUHVDIHUDSSURSULDWHRSLRLGSUHVFULELQJNDLVHU
SHUPDQHQWHVFRPSUHKH
2SLRLG0HGLFDWLRQ$JUHHPHQW KWWSVWKULYHNDLVHUSHUPDQHQWHRUJFDUHQHDU
\RXQRUWKHUQFDOLIRUQLDQDSDVRODQRZS
FRQWHQWXSORDGVVLWHV2SLRLG
$JUHHPHQWDGDSGI
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
7KURXJKWKHHOHFWURQLFKHDOWKUHFRUGSK\VLFLDQVFDQDFFHVVWKH&KURQLF2SLRLG7KHUDS\ KWWSVDERXWNDLVHUSHUPDQHQWHRUJRXU
0DQDJHPHQW6PDUW6HWGHFLVLRQVXSSRUWWHFKQRORJ\WKDWFDQEHXVHGDVDEHVWSUDFWLFH VWRU\QHZVLQWKHQHZVPDQDJLQJSDLQRSLRLGV
JXLGHIRUWUHDWLQJDFXWHDQGFKURQLFSDLQFDQKHOSIODJKLJKULVNSDWLHQWV7KH(PSDWKLF HSLGHPLF
3DLQ&RQYHUVDWLRQVSURJUDPSURYLGHVSK\VLFLDQVZLWKKHOSDQGVXSSRUWRQKRZWRVSHDN
DERXWSDLQDQGRSLRLGVZLWKWKHLUSDWLHQWV
(QKDQFHG5HFRYHU\$IWHU6XUJHU\(5$6ZDVUROOHGRXWLQIRUSDWLHQWVXQGHUJRLQJ KWWSVDERXWNDLVHUSHUPDQHQWHRUJRXU
FRORQDQGKLSIUDFWXUHVXUJHU\QRZLW¶VXVHGLQDOOLQSDWLHQWVXUJHULHV VWRU\KHDOWKUHVHDUFKQHZVKHOSLQJVXUJLFDO
SDWLHQWVDYRLGORQJWHUPXVHRIRSLRLGV
830&+HDOWK KWWSVZZZXSPFFRP
6\VWHP
7KUHH830&SK\VLFLDQVUHVHDUFKHGVROXWLRQVWRKHOSSDWLHQWVPDQDJHWKHLUORZHUEDFNSDLQ KWWSVLQVLGHXSPFFRPGDWDSUHYHQWEHWWHUWUHDW
ZKLOHDOVRGHFUHDVLQJWKHULVNRIDGGLFWLRQDQGPD[LPL]LQJWKHUROHRIQRQRSLRLGWKHUDSLHV SDLQDGGLFWLRQ
-HVVLFD60HUOLQ0'DYLVLWLQJDVVRFLDWHSURIHVVRURIPHGLFLQHDWWKH8QLYHUVLW\RI KWWSVZZZXSPFFRPPHGLDQHZVPHUOLQMJLP
3LWWVEXUJK6FKRRORI0HGLFLQHSLQSRLQWHGWKHFRPPRQFRQFHUQLQJEHKDYLRUVRIFKURQLF
XVHRSLRLGSDLQSDWLHQWVLGHQWLILHGPDQDJHPHQWVWUDWHJLHVDQGHVWDEOLVKHGDUHDVRI
FRQVHQVXVRQWKHLPSRUWDQFHRIHDFKVWUDWHJ\
5HVHDUFKDQGHGXFDWLRQDUHWKHWRSLFVRIGLVFXVVLRQ830&DQG3LWWWDNHD KWWSVZZZXSPFFRPPHGLDPHGLDNLWRSLRLG
PXOWLGLVFLSOLQDU\DSSURDFKEULQJLQJWRJHWKHUUHVHDUFKHUVDGGLFWLRQVSHFLDOLVWVSDLQ HSLGHPLF
PHGLFLQHFOLQLFLDQVSXEOLFKHDOWKSUDFWLWLRQHUVHPHUJHQF\GRFWRUVSKDUPDFLVWVDQGRWKHUV
WREHWWHUXQGHUVWDQGWKHSUREOHPDQGVHHNVROXWLRQV
&DUROLQDV KWWSVDWULXPKHDOWKRUJ
+HDOWKFDUH
6\VWHP
$WULXP+HDOWK
)RXUSDJHRYHUYLHZRIWKHRSLRLGSUREOHPDQGWKHKHDOWKV\VWHP
VUHVSRQVHWRLW KWWSVDWULXPKHDOWKRUJ
PHGLDFKVLPDJHVPHGLFDOVHUYLFHVSUHYHQWLRQ
DQGZHOOQHVVRSLRLGVRSLRLGFULVLVLQWKH
FDUROLQDVSGI
35,080703UHVFULSWLRQ5HSRUWLQJZLWK,PPHGLDWH0HGLFDWLRQ8WLOL]DWLRQ0DSSLQJ KWWSVDWULXPKHDOWKRUJPHGLFDO
³2XUJRDOZDVWRSURYLGHDFWLRQDEOHLQIRUPDWLRQDWWKHPRPHQWLWLVQHHGHGPRVWEHIRUH VHUYLFHVSUHYHQWLRQZHOOQHVVRSLRLGFULVLV
ZULWLQJDSUHVFULSWLRQ35,080UHPRYHVSK\VLFLDQV
LPSOLFLWELDVHVIRUZKDWDQRSLRLGXVH
GLVRUGHUORRNVOLNH´5DFKHO6H\PRXU3K'9LFH&KDLURI5HVHDUFK$WULXP+HDOWK
0XVFXORVNHOHWDO,QVWLWXWH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
8VLQJ$WULXP
VFHQWUDOL]HGHOHFWURQLFKHDOWKUHFRUGVWRGHYHORSDQLQQRYDWLYH³RSLRLG KWWSVDWULXPKHDOWKRUJPHGLFDO
GDVKERDUG´DOORZVPHGLFDOGLUHFWRUVWRLGHQWLI\WUHQGVLQSUHVFULELQJKDELWVDFURVV VHUYLFHVSUHYHQWLRQZHOOQHVVRSLRLGFULVLVSULPXP
GLIIHUHQWORFDWLRQVDQGVSHFLDOWLHV
2SLRLGWDVNIRUFHVXFFHVVIXOO\LPSOHPHQWHGSURWRFROVLQYROYLQJWKHIROORZLQJPRGDOLWLHVWR KWWSVDWULXPKHDOWKRUJPHGLFDO
KHOSSDWLHQWVPDQDJHWKHLUSDLQEH\RQGRSLRLGV VHUYLFHVSUHYHQWLRQZHOOQHVVRSLRLGFULVLVTXDOLW\
&U\RWKHUDS\$URPDWKHUDS\*XLGHGLPDJHU\0DVVDJHDQG5HLNLWKHUDS\ DQGVDIHW\
0XOWLPRGDOSDLQSDWKZD\V$GGHGHGXFDWLRQDOLQWUDQHWSDJHLQWRNHHSSURYLGHUVXS
WRGDWHRQ$WULXP+HDOWK¶VSDLQPDQDJHPHQWUHFRPPHQGDWLRQVDVZHOODVSXEOLFSROLF\
LPSDFWLQJSUHVFULELQJSUDFWLFHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
$SSHQGL[)3ROLFLHVIURP7RS7HQ&KDLQ3KDUPDFLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
3ROLFLHVIURP7RS7HQ&KDLQ3KDUPDFLHV
1RWHV 6RXUFH
&96 KWWSVZZZFYVFRP
'D\$FXWH/LPLW$QHZSUHVFULSWLRQIRUDQDFXWHFRQGLWLRQLVOLPLWHGWRDGD\VXSSO\ &96&DUHPDUN2SLRLG4XDQWLW\/LPLWV3KDUPDF\
IRUDSDWLHQWZLWKQRRSLRLGSUHVFULSWLRQVLQWKHSULRUGD\V 5HIHUHQFH*XLGH
,5(56WHS7KHUDS\8VHRIDQ,5RSLRLGLVUHTXLUHGSULRUWRUHFHLYLQJDQ(5RSLRLGGXHWR KWWSVZZZFDUHPDUNFRPSRUWDODVVHW2SLRLGB5HI
LQFUHDVHGSDWLHQWULVN3ULRUDXWKRUL]DWLRQLVQHHGHGLIWKHUHLVQRKLVWRU\RIDQ,5RU(5 HUHQFHB*XLGHSGI
RSLRLGLQWKHSUHYLRXVGD\V
0D['RVH/LPLWV/LPLWWKHGRVHRIRSLRLGVSUHVFULEHGWRD00(GD\3UHVFULEHUVPD\
UHTXHVWDSULRUDXWKRUL]DWLRQIRUKLJKHUGRVHVXSWR00(GD\
³:KHQPD[TXDQWLW\OLPLWVDUHH[FHHGHG«3KDUPDFLVWVVKRXOGUHDFKRXWWRSUHVFULEHUVE\
SKRQHWRFRPPXQLFDWHWKHUHMHFWLRQDQGXQGHUVWDQGZKHWKHUWKHTXDQWLW\FDQEHUHGXFHG
ZLWKLQOLPLWV´
9LDOLQNWR$HWQD³%\SURYLGLQJFRYHUDJHIRU(;3$5(/70IRUZLVGRPWRRWKH[WUDFWLRQV
PHPEHUVKDYHDFFHVVWRDVDIHDQGHIIHFWLYHSDLQWUHDWPHQWRSWLRQWKDWFDQSURYLGHUHOLHI
IRUWKHILUVWIHZGD\VIROORZLQJDSURFHGXUH$VSDUWRIWKLVVWUDWHJ\$HWQDKDVHQKDQFHGLWV
RQOLQHSURYLGHUVHDUFKWRRO'RF)LQGWRKHOSPHPEHUVVHDUFKIRUSURYLGHUVZKRRIIHU
RSLRLGDOWHUQDWLYHVOLNH(;3$5(/´
9LDOLQNWR$HWQD³$HWQD¶VVWUDWHJLFSURJUDPVIRFXVRQSUHYHQWLRQ«LQFOXGLQJµVXSHU
SUHVFULEHU¶LQWHUYHQWLRQVWRSK\VLFLDQVVXUJHRQVDQGGHQWLVWVZLWKRXWO\LQJRSLRLG
SUHVFULELQJKDELWV´
9LDOLQNWR$HWQD³%\SURYLGLQJFRYHUDJHIRU(;3$5(/IRUZLVGRPWRRWKH[WUDFWLRQV KWWSVQHZVDHWQDFRPDHWQDPDNLQJ
PHPEHUVKDYHDFFHVVWRDVDIHDQGHIIHFWLYHSDLQWUHDWPHQWRSWLRQWKDWFDQSURYLGHUHOLHI SURJUHVVLQLWVILJKWDJDLQVWRSLRLGPLVXVHDEXVH
IRUWKHILUVWIHZGD\VIROORZLQJDSURFHGXUH$VSDUWRIWKLVVWUDWHJ\$HWQDKDVHQKDQFHGLWV
RQOLQHSURYLGHUVHDUFKWRRO'RF)LQGWRKHOSPHPEHUVVHDUFKIRUSURYLGHUVZKRRIIHU
RSLRLGDOWHUQDWLYHVOLNH(;3$5(/´
9LDOLQNWR$HWQD³$HWQD¶VVWUDWHJLFSURJUDPVIRFXVRQSUHYHQWLRQ«LQFOXGLQJµVXSHU KWWSVQHZVDHWQDFRPRSLRLGVXSHU
SUHVFULEHU¶LQWHUYHQWLRQVWRSK\VLFLDQVVXUJHRQVDQGGHQWLVWVZLWKRXWO\LQJRSLRLG SUHVFULEHUV
SUHVFULELQJKDELWV´
:DOJUHHQV KWWSVZZZZDOJUHHQVFRP
7HOHSKRQHLQWHUYLHZZLWK7DVKD3ROVWHU93
GD\OLPLWIRU5[WUHDWLQJDFXWHSDLQ1RGRVHOLPLWIRURQJRLQJ5[3KDUPDFLVWVKDYHD 3KDUPDF\4XDOLW\&RPSOLDQFHDQG3DWLHQW6DIHW\
UHGIODJOLVWWKH\XVHWRHYDOXDWHWKHDSSURSULDWHQHVVRID5[ VKHFRXOGQRWSURYLGHLQIRUPDWLRQLQZULWLQJEXW
DSSURYHGEHLQJFLWHGDVWKHLQIRUPDWLRQVRXUFH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
5HGIODJOLVWLQFOXGHVVHHNDGGLWLRQDOLQIRIURPSDWLHQWDQGSK\VLFLDQVLI5[IRUDQ\GUXJ KWWSQDWLRQDOSDLQUHSRUWFRPZDOJUHHQVVHFUHW
FRQWDLQLQJR[\FRGRQHK\GURPRUSKRQHPHWKDGRQHPRUSKLQHIHQWDQ\ORU2SDQD70FRS\ FKHFNOLVWSDLQPHGVKWPO
SKRWR,'UXQ3'03LQIRUP3WPD\WDNHORQJHUWRILOO5[&DOOSK\VLFLDQLI³LQ\RXU
SURIHVVLRQDOMXGJPHQWDFDOOWRDSUHVFULEHULVZDUUDQWHG´DVNGRFWRUWRYHULI\ZULWLQJ5[
SDWLHQWGLDJQRVLVH[SHFWHGOHQJWKRIWUHDWPHQWGDWHRIODVWRIILFHYLVLW5HGIODJOLVW
LQFOXGHV5[QRWSUHYLRXVO\ILOOHGDW:DOJUHHQVQHZGRFWRUZULWLQJ5[IRUVDPHSDLQPHG
GRFWRUZKRLVQRWFORVHJHRJUDSKLFDOO\WRWKHSKDUPDF\SDWLHQWSD\LQJLQFDVKSDWLHQW
VHHNLQJHDUO\UHILOOSDWLHQWVHHNLQJH[FHVVLYHQXPEHURISLOOVSDWLHQWWDNLQJVDPHSDLQPHG
PRUHWKDQPRQWKV
$VNHGDERXW:DOJUHHQ¶VSUHVVXUHRQSUHVFULEHUVWRIROORZWKH&'&JXLGHOLQHVFRPSDQ\ KWWSVZZZIR[QHZVFRPKHDOWKGRFWRUVDEDQGRQ
VSRNHVSHUVRQ3KLO&DUXVRWROG)R[1HZV³$VDNH\SDWLHQWWRXFKSRLQWLQWKHQDWLRQ¶V RSLRLGSUHVFULELQJDVVWDWHDQGIHGHUDODXWKRULWLHV
KHDOWKFDUHGHOLYHU\V\VWHPZHUHJXODUO\FRPPXQLFDWHZLWKSUHVFULEHUVWRKHOSHQVXUHWKH VWHSXSHQIRUFHPHQW
VDIHDQGHIIHFWLYHGLVSHQVLQJRIPHGLFDWLRQVLQWKHEHVWLQWHUHVWRIRXUFXVWRPHUV´
³7KHKHDUWRIWKLVSROLF\LV7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV6HFWLRQ KWWSSDLQGUFRPLVZDOJUHHQVRSLDWHSROLF\
ZKLFKH[SODLQVWKDWDSKDUPDFLVWKDVDFRUUHVSRQGLQJUHVSRQVLELOLW\WRHQVXUHWKDWDQ\ GHFHSWLYH
SUHVFULSWLRQIRUDFRQWUROOHGVXEVWDQFHWKDWLVGLVSHQVHGLVGRQHVRIRUDOHJLWLPDWHPHGLFDO
SXUSRVH´
³:DOJUHHQVUHVSRQGHGE\WLJKWHQLQJLWVSUHH[LVWLQJµ*RRG)DLWK'LVSHQVLQJ¶SROLF\ KWWSVRQOLQHOLEUDU\ZLOH\FRPGRLIXOOFDD
UHTXLULQJSKDUPDFLVWVWRWDNHDVHULHVRIVWHSVZKHQSUHVHQWHGZLWKDFRQWUROOHGVXEVWDQFH F
SUHVFULSWLRQVWHSVWKDWPLJKWLQFOXGHFDOOLQJWKHSUHVFULEHUWRFRQILUPLQIRUPDWLRQDERXW
WKHSDWLHQWDQGWKHSDWLHQW
VGLDJQRVLVDQGWUHDWPHQWSODQDQGDERXWWKHSUHVFULEHU´
2XWOLHULV³«RQHZKRKDVDQDYHUDJHGDLO\PRUSKLQHPLOOLJUDPHTXLYDOHQW00(RI
PJRUKLJKHUUHFHLYHVRSLRLGVIURPPRUHWKDQWKUHHSUHVFULEHUVDQGPRUHWKDQWKUHH
SKDUPDFLHVRUWKH\PLJKWJHWWKHLURSLRLGVIURPPRUHWKDQILYHSUHVFULEHUVUHJDUGOHVVRI
QXPEHURISKDUPDFLHVRYHUDVL[PRQWKSHULRG´
:DOPDUW KWWSVZZZZDOPDUWFRPFSSKDUPDF\
5HVWULFWVLQLWLDODFXWHRSLRLGSUHVFULSWLRQVWRQRPRUHWKDQDVHYHQGD\VXSSO\ZLWKXSWRD KWWSVFRUSRUDWHZDOPDUWFRPPHGLD
00(PD[LPXPSHUGD\LQDOLJQPHQWZLWK&'&JXLGHOLQHV,IDVWDWHODZIRUILOOVRQ OLEUDU\GRFXPHQWRSLRLGIDFW
QHZDFXWHRSLRLGSUHVFULSWLRQVLVOHVVWKDQVHYHQGD\VWKHFRPSDQ\ZLOOIROORZVWDWHODZ VKHHWBSUR[\'RFXPHQW"LG DEFGHG
3KDUPDFLVWVSURYLGHSDWLHQWVZLWKFRXQVHOLQJXVLQJ&'&JXLGHOLQHVIRFXVLQJRQXVLQJWKH DEIIIHH
ORZHVWHIIHFWLYHGRVHIRUSDLQPDQDJHPHQWIRUWKHVKRUWHVWWLPHSRVVLEOH
KWWSVQHZVZDOPDUWFRPZDOPDUW
%\-DQXDU\HSUHVFULSWLRQVZLOOEHUHTXLUHGIRUFRQWUROOHGVXEVWDQFHV LQWURGXFHVDGGLWLRQDOPHDVXUHVWRKHOSFXUE
RSLRLGDEXVHDQGPLVXVH
:DOPDUW¶VSROLFLHVDOVRDSSO\WR6DP
V&OXE3KDUPDFLHV
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
5LWH$LG KWWSVZZZULWHDLGFRP
KWWSVZZZULWHDLGFRPFRUSRUDWHQHZV
3DUWLFLSDWLQJLQSUHVFULSWLRQGUXJPRQLWRULQJSURJUDPVLQFOXGLQJD³UHGIODJ´SURFHVVIRU
SUHVVUHOHDVHVQHZVURRPULWHDLGDSSODXGV
SKDUPDFLVWVWRUHJXODUO\UHYLHZSUHVFULSWLRQVIRUSDWLHQWVQRWNQRZQE\WKHSKDUPDF\RU
QHZODZVLJQHGE\SUHVLGHQWWUXPSWRKHOSILJKW
ZKHUHWKHUHPD\EHFRQFHUQVRUVXVSLFLRQVRIPLVXVH
RSLRLGDEXVH
5LWH$LG
V3%0KDVDSURJUDP(QYLVLRQ&DUH3DLQ0DQDJHPHQWZLWKGD\OLPLWRQ
SUHVFULSWLRQVIRUSDWLHQWVZKRKDYHQRWXVHGDQRSLRLGDQDOJHVLFLQWKHSDVWPRQWKVVWHS
KWWSVZZZSKDUPDFLVWFRPDUWLFOHULWHDLGV
WKHUDS\IRUH[WHQGHGUHOHDVHRSLRLGDQDOJHVLFVDQGSULRUDXWKRUL]DWLRQIRUH[WUHPHO\KLJK
HQYLVLRQU[WDNHVVWHSVPLQLPL]HRSLRLGDGGLFWLRQ
GRVDJHVJUHDWHUWKDQ00(V'UXJXWLOL]DWLRQUHYLHZVDWWKHSKDUPDF\SURPRWHSURSHU
ULVN
GLVSHQVLQJDQGSRLQWRIVDOHDOHUWVIRUKLJKGRVDJHVRUXQVDIHLQWHUDFWLRQVEHWZHHQ
PHGLFDWLRQV
6XSSOHPHQWDOUHYLHZVWRLGHQWLI\SDWLHQWVZKRPD\EHILOOLQJKLJKGRVDJHRSLRLGVDQGRU KWWSVZZZGUXJVWRUHQHZVFRPSKDUPDF\ULWH
UHFHLYLQJSUHVFULSWLRQVIURPPXOWLSOHSUHVFULEHUVDQGGLVSHQVHUV6KRUWHQHGUHILOOZLQGRZ DLGVHQYLVLRQU[WDNHVVWHSVWRPLQLPL]HRSLRLG
WRH[KDXVWHGRIVXSSO\EHIRUHUHILOOGLVSHQVHG DGGLFWLRQULVN
.URJHU KWWSVZZZNURJHUFRP
$SSULVV303*DWHZD\WKURXJKWKH1DWLRQDO$VVRFLDWLRQRI%RDUGVRI3KDUPDF\303 KWWSVZZZKHDOWKLWJRYVLWHVGHIDXOWILOHV
,QWHUFRQQHFW303,+XE ,QWHURSHUDELOLW\2SLRLGV3'03VSGI
³,PSOHPHQWDWLRQRIDSUHVFULSWLRQGUXJPRQLWRULQJSURJUDP3'03UHSRUWUHYLHZLQ
KWWSVZZZFGFIRXQGDWLRQRUJEXVLQHVVSXOVHRSLRL
ZRUNIORZZLWK1$5[&+(&.70´³.URJHUZDVILUVWPDMRUSKDUPDF\FKDLQWRLQWHJUDWHD
GRYHUGRVHHSLGHPLF4$PHQNKDXV
3'03UHSRUWUHYLHZZLWKZRUNIORZLQWKRVHVWDWHVZKHUHWKHIHDWXUHLVHQDEOHG´
³,Q-DQXDU\1RUWK&DUROLQD¶V&RQWUROOHG6XEVWDQFHV5HSRUWLQJ6\VWHP&656MRLQHGWKH
1DWLRQDO$VVRFLDWLRQRI%RDUGVRI3KDUPDF\¶VGDWDVKDULQJQHWZRUN303,QWHU&RQQHFWWR
KHOSUHGXFHSUHVFULSWLRQGUXJPLVXVH7KLVQHWZRUNDOORZVGRFWRUVDQGRWKHUFOLQLFLDQVWR
REWDLQPXOWLVWDWHLQIRUPDWLRQDERXWWKHLUSDWLHQWV¶RSLRLGSUHVFULSWLRQV7KHVWDWH KWWSVDSSULVVKHDOWKFRPSUHVVUHOHDVHNURJHU
SUHVFULSWLRQPRQLWRULQJQHWZRUNSURFHVVHVPRUHWKDQPLOOLRQWUDQVDFWLRQVRI KDUULVWHHWHUSKDUPDFLHVMRLQGKKVILJKW
SUHVFULSWLRQGDWDSHUPRQWK.URJHUDQG+DUULV7HHWHUXWLOL]HWKLVLQPRUHWKDQVWRUHV SUHVFULSWLRQGUXJPLVXVH
DFURVVVWDWHV7KH\DUHWKHILUVWSKDUPDF\FKDLQVWRLPSOHPHQWWKLVLQWRWKHLUUHJXODU
ZRUNIORZDVWHSWKDWRFFXUVEHIRUHGLVSHQVLQJWRUHGXFHWKHSRWHQWLDOWRGLVSHQVH
XQZDUUDQWHGFRQWUROOHGVXEVWDQFHSUHVFULSWLRQV´
³7KH1$5[&+(&.ULVNGHWHFWLRQDOJRULWKPVDQG.URJHU¶VV\VWHPFRQILJXUDWLRQVHWWLQJV KWWSVZHEFDFKHJRRJOHXVHUFRQWHQWFRPVHDUFK"T
IRUUHTXLUHGUHYLHZDUHSURSULHWDU\LQIRUPDWLRQWKXVQRWDYDLODEOHIRUWKLVUHSRUW´ FDFKH5\\[24[)IB-KWWSVZZZSGPSDVVLVWRUJ
SGI1))B.URJHUBSGI FG KO HQ FW
³7KH.URJHUV\VWHPDXWRPDWLFDOO\UHTXHVWVDQGUHFHLYHVD3'03UHSRUWIRUDOOFRQWUROOHG
FOQN JO XV FOLHQW ILUHIR[EG
VXEVWDQFHSUHVFULSWLRQVVXEPLWWHGIRUWKHSDWLHQWXVLQJGDWDIURPDOOHQDEOHGQHLJKERULQJ
VWDWHVOLQNHGWRWKHKRVWVWDWH
V3'037KHUHSRUWVDUHDYDLODEOHXVLQJWKHDQDO\WLFDOWRRO
DFFHVVLEOHYLDWKH³3'03´EXWWRQLQWKHSKDUPDFLVWV
GLVSHQVLQJVRIWZDUHVRQRVHSDUDWH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
3'03ORJLQLVQHFHVVDU\6KRXOGWKHSDWLHQW
VSUHVFULSWLRQGDWDPHHWRUH[FHHGVSHFLILFULVN
WKUHVKROGVWKHV\VWHPLVFRQILJXUHGWRDOHUWWKHSKDUPDFLVWWKDWWKHUHSRUWPXVWEHUHYLHZHG
SULRUWRGLVSHQVLQJ7KHFUHGHQWLDOVRIWKHUHYLHZLQJSKDUPDFLVWVDUHFDSWXUHGDQGVWRUHG´
³6KRXOGDUHYLHZEHUHTXLUHGSURPSWVDSSHDUWKDWQRWLI\WKHSKDUPDFLVWWKDW3'03GDWD
PXVWEHFRQVXOWHGDWWHPSWVWRE\SDVVDIRUFHGUHYLHZDXWRPDWLFDOO\EORFNWKHSURPRWLRQ
RIWKHSUHVFULSWLRQWRWKHQH[WZRUNIORZVWHS´
³*XLGDQFHRQKRZWRXVHWKHV\VWHPDQGLQWHUSUHW3'03GDWDVXFKDVGHWHFWLQJUHGIODJV
LVDYDLODEOHIURPOLQNVZLWKLQWKHDSSOLFDWLRQLWLQFOXGHV)$46WUDLQLQJPDWHULDOVDQGD
GHWDLOHGPDQXDO´
6WDWHVLQFOXGH$.$5$=&2,',1.6/$0610192+6&7;9$:9
3UHVHQWDWLRQ
0HQNKDXV³3KDUPDFLHVFDQGHFOLQHWRILOO&65[VZKHQDOHJLWLPDWHQHHGH[LVWV´ KWWSVZZZVOLGHVKDUHQHW2381,7(U[
SKDUPDZHGU\OHPHQNKDXVPFJLQOH\
$OEHUWVRQV KWWSVZZZDOEHUWVRQVFRP
8QDEOHWRILQGRQOLQHLQIRUPDWLRQ
3XEOL[
7KH2SLRLG0DQDJHPHQWSURJUDPDSSOLHVWRDOOPHPEHUVDQGFRQVLVWVRIGDLO\TXDQWLW\ KWWSVPHPEHUP\KHDOWKWRRONLWIOFRPZHEQRQVHFX
OLPLWVVSHFLILFWRHDFKFRYHUHGRSLRLGGUXJDQGSULRUDXWKRUL]DWLRQUHTXLUHPHQWVIRUFHUWDLQ UHSXEOL[0HPEHU+RPH(GXFDWLRQ&HQWHU(QUROO
SUHVFULELQJVLWXDWLRQV PHQW7RROV'UXJ/LVWV'UXJ/LVWV
,QOLQHZLWK&'&SUHVFULELQJJXLGHOLQHV
/LQNWRSDJHGRFXPHQWH[SODLQLQJWKHLUSROLF\'RFXPHQWLQFOXGHVSDJHVRI KWWSVPHPEHUP\KHDOWKWRRONLWIOFRPZHEQRQVHFX
PHGLFDWLRQVZLWKVSHFLILFOLPLWVEDVHGRQGUXJGUXJVWUHQJWKDQGLIWKHPHGLV,5(5RU UHSXEOL[0HPEHU+RPH(GXFDWLRQ&HQWHU(QUROO
FRPELQDWLRQ&HUWDLQGUXJVDUHGLVDOORZHG0RQWKO\TXDQWLW\OLPLWVDUHGHWDLOHGLQWKH PHQW7RROV'UXJ/LVWV'UXJ/LVWV
FKDUWVEXWWKHYHUELDJHIRUWKHSXEOLFVD\VWKDWWKHUHDUHGDLO\TXDQWLW\OLPLWVVSHFLILFWR
HDFKRSLRLGDQGSULRUDXWKRUL]DWLRQLVUHTXLUHGIRUFHUWDLQSUHVFULELQJVLWXDWLRQV
'RFWRUFDQUHTXHVWPHGLFDWLRQVWREHGLVSHQVHGRYHUDPRXQWLQSROLF\EXWUHTXHVWVJRWR
&96&DUHPDUNRUSDWLHQW
VKHDOWKSODQIRUUHYLHZ
3URJUDPGRHV127DSSO\WRSDWLHQWVZLWKFDQFHURUVLFNOHFHOOGLVHDVHRUWKRVHRQKRVSLFH
7KHVHZLOOEHSUHDXWKRUL]HG
,IRQH¶V5[LVPRUHWKDQWKHOLPLWWKHSKDUPDFLVWFDQUHGXFHWRWKHTXDQWLW\WKHSODQ
FRYHUVWKHSDWLHQWFDQSD\IXOOSULFHIRUDOORUWKHSDUWWKDWH[FHHGVWKHOLPLWRUWKH
SKDUPDFLVWFDQDVNWKHSUHVFULEHUIRUDTXDQWLW\RYHUULGHLIDYDLODEOH
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
&96&DUHPDUNLVWKH3%0IRU3XEOL[
3KDUPDF\EHQHILWPDQDJHUV&96&DUHPDUN³DUHEHWWHUSODFHGWKDQRWKHUVLQWKH KWWSVZZZVWDWQHZVFRPFYVRSLRLG
SKDUPDF\VXSSO\FKDLQWRSXWWKLVDSSURDFKWRWKH&'&*XLGHOLQHLQWRSUDFWLFH´DV SUHVFULSWLRQOLPLWV
RSSRVHGWRPHGLFDWLRQZKROHVDOHUVRUUHWDLOSKDUPDFLVWV
&96&DUHPDUNRSLRLGQDwYHSDWLHQWVKDYHDGD\OLPLWGDLO\GRVDJHOLPLWVDQGUHTXLUHG
,5EHIRUH(5GRFWRUFDQDVNIRUH[HPSWLRQVDQGHPSOR\HUVDQGLQVXUHUVFDQRSWRXW
$KROG KWWSVZZZDKROGGHOKDL]HFRPHQKRPH
'HOKDL]H
$KROG'HOKDL]HEUDQGVKDYH:HOO'\QH5[SKDUPDFLHV
³:HOO'\QH5[LVDQLQGHSHQGHQW3%0:HLQWHJUDWHFODLPVIURPPXOWLSOHSKDUPDFLHV
LQFOXGLQJUHWDLOPDLORUGHUDQGVSHFLDOW\VHUYLFHSKDUPDFLHVHDFKWLPHDPHPEHUXVHVWKH
EHQHILW0RUHLPSRUWDQWO\HDFKFODLPSDVVHVWKURXJKPRUHWKDQHGLWVIRUPHPEHU
HOLJLELOLW\SODQGHVLJQSULFLQJFOLQLFDODSSURSULDWHQHVVDQGPRUH´
³7KH:HOO0DQDJHG2SLRLGVSURJUDPODXQFKHGLQWRDGGUHVVWKHRSLRLGFULVLV
OHYHUDJHV0RUSKLQH(TXLYDOHQW'RVH0('FKHFNVDWWKHSRLQWRIVDOHSULRUWRSKDUPDF\
GLVSHQVLQJWRHQVXUHKLJKGRVDJHSDWLHQWVDUHEHLQJFDUHIXOO\PRQLWRUHGE\WKHLUSURYLGHUV
DQGUHFHLYLQJDSSURSULDWHSUHVFULSWLRQV7KHVH0('FKHFNVWDNHLQWRDFFRXQWDOORIWKH
KWWSVZZZZHOOG\QHU[FRPVROXWLRQVFOLQLFDO
SDLQPHGLFDWLRQVDSDWLHQWLVSUHVFULEHGDQGFRPELQHWKHLUGRVLQJWRWDOVLQVWHDGRIORRNLQJ
H[SHUWLVH
RQO\DWWKHGRVDJHOHYHOVRIHDFKGUXJLQGLYLGXDOO\8VLQJDGYDQFHGSKDUPDF\WHFKQRORJ\
SDWLHQWVZKRDUHSUHVFULEHGSRWHQWLDOO\LQDSSURSULDWHFRQFRPLWDQWPHGLFDWLRQVZLWK
RSLRLGVVXFKDVEHQ]RGLD]HSLQHVRUPXVFOHUHOD[HUVDUHLGHQWLILHGDQGDFWLRQDEOHUHSRUWV
DUHFUHDWHGIRUERWKSUHVFULEHUDQGSDWLHQWRXWUHDFK´
³2XU:HOO0DQDJHG2SLRLGV3URJUDPWDNHVDFRPSUHKHQVLYHDSSURDFKWRDGGUHVVLQJWKLV
JURZLQJSUREOHP´5HDOWLPHSRLQWRIVHUYLFH326FXPXODWLYH0('HGLWV3ULRU
$XWKRUL]DWLRQIRUWDUJHWHGKLJKULVNPHGVSURSULHWDU\ULVNVWUDWLILFDWLRQHYDOXDWLRQ KWWSVZZZZHOOG\QHU[FRPOLVWHQLQJFOLHQWIDTV
SK\VLFLDQFRPPXQLFDWLRQRQDWULVNPHPEHUVFDQFHUHQGRIOLIHFDUHRUKRVSLFHSDWLHQWV
DUHH[FOXGHG
+(% KWWSVZZZKHEFRP
³+(%5[75$$GYDQWDJHRIIHUV\RXDIUHVKDSSURDFKWR3KDUPDF\%HQHILW0DQDJHPHQW
VHUYLFHVE\GHOLYHULQJFRPSOHWHWUDQVSDUHQF\DQGIXOOGLVFORVXUH:HJXDUDQWHH
KWWSVZZZKHEFRPVWDWLFSDJHDUWLFOH
SDVVWKURXJKSULFLQJ,QDGGLWLRQZHGRQ
WEHOLHYHLQDRQHVL]HILWVDOODSSURDFK
WHPSODWHKHEU[WUDDGYDQWDJH
,QVWHDGZHZRUNZLWK\RXWRFXVWRPL]HDSODQWKDWPHHWVWKHQHHGVRI\RXUEXVLQHVVDQG
\RXUHPSOR\HHV´
2IIHUFRPSRXQGLQJIRUSDLQPDQDJHPHQW KWWSVZZZKHEFRP
5.7&RQVXOWLQJ
*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
1RWHV 6RXUFH
$FFHSWV(&36
0U:LHVQHU6U'LURI*RY
W$IIDLUV3ULYDF\DQG3KDUPDF\IRU+(%VD\V+(% KWWSVZZZWH[PHGRUJ1HFHVVDU\3DLQ
ZKLFKLQVWDOOHG(3&6VRIWZDUHLQLWV7H[DVSKDUPDFLHVPRUHWKDQD\HDUDJRWUDLQVLWV
SKDUPDFLVWVWRORRNIRUUHGIODJV+HVD\VWKHUHGIODJVDSSO\WRHOHFWURQLFDQGSDSHU
SUHVFULSWLRQVDQGLQFOXGH4XHVWLRQDEOHGUXJFRPELQDWLRQVDQGTXDQWLWLHVWKHSK\VLFDO
GLVWDQFHEHWZHHQWKHSUHVFULELQJSK\VLFLDQ
VRIILFHDQGWKHSKDUPDF\GLVWDQFHEHWZHHQWKH
SUHVFULELQJSK\VLFLDQDQGWKHSDWLHQW
VKRPHDGGUHVVDQGGLVWDQFHEHWZHHQWKHSDWLHQWDQG
WKHSKDUPDF\DQGFDVKSD\PHQW-XO\DUWLFOH
³:KHQSKDUPDFLVWVHQFRXQWHURQHRIWKHVHUHGIODJVWKH\FDQFDOOWKHSUHVFULELQJSK\VLFLDQ
WRFRQILUPWKHPHGLFDWLRQRUVHDUFKWKHSDWLHQW
V'36SURILOHWRORRNIRUVLJQVRIGUXJ
DEXVH´
³:HWUXVWSKDUPDFLVWVWRXVHSURIHVVLRQDOMXGJPHQW´KHVDLG³,WKLQNRXUIRONVWHQGWRHUU
RQWKHVLGHRIWKHSDWLHQWZKHQWKH\FDQ´
0U:LHVQHUVD\V³ZKHQDSK\VLFLDQVHQGVDQ(3&6WR+(%WKHSUHVFULSWLRQPXVWSDVV
WKURXJK6XUHVFULSWVDQLQWHUPHGLDU\WKDWORRNVDWPXOWLSOHGDWDLQFOXGLQJWKHGUXJLQ
TXHVWLRQ6XUHVFULSWVDOVRFKHFNVWRVHHLIWKHSUHVFULELQJSK\VLFLDQ
V(3&6VRIWZDUHLV
'($FHUWLILHG,ILWLVWKHSUHVFULSWLRQLVVHQWWRDQ+(%SKDUPDF\IRUSURFHVVLQJ´
KWWSZZZWH[DVSKDUPDF\FRQJUHVVRUJLPDJHV7)
'6B5HSRUWBWRB7KHB3KDUPDF\B&RQJUHVVB
SGI
&RVWFR KWWSVZZZFRVWFRFRP3KDUPDF\
8QDEOHWRILQGRQOLQHLQIRUPDWLRQ
5(063URJUDP&RPSDQLHV
2SLRLG$QDOJHVLF5(06
7ZHOYH0RQWK)'$$VVHVVPHQW5HSRUW),1$/
9
$SSHQGL[ (YDOXDWLRQRIWKH,PSDFWRI5(06&RPSOLDQW$FFUHGLWHG&(:KLWH3DSHU
$GGHQGXP
3URSULHWDU\DQG&RQILGHQWLDO 3DJHRI
$GGHQGXPWR
2SWLRQVIRU(YDOXDWLQJWKH,PSDFWRI5(06&RPSOLDQW&RQWLQXLQJ(GXFDWLRQ
RQ2SLRLG3UHVFULELQJ3UDFWLFHV3DWLHQW0DQDJHPHQWDQG3DWLHQW2XWFRPHV
5HIOHFWLQJ1HZ53&5HSRUWVRQ(IIRUWVWR&RQWDLQ2SLRLG3UHVFULELQJ
DQG,PSURYHWKH&DUHRI3DWLHQWV5HFHLYLQJ2SLRLGVLQWKH8QLWHG6WDWHV
3UHSDUHGIRUWKH2SLRLG$QDOJHVLF5(063URJUDP&RPSDQLHV
$XJXVW
$OH[DQGHU0:DONHU0''U3+
3ULQFLSDO
:RUOG+HDOWK,QIRUPDWLRQ6FLHQFH&RQVXOWDQWV
$OOLHG'ULYH6XLWH
'HGKDP0$
ZZZ:+,6&21FRP
$OHF:DONHU#:+,6&21FRP
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
&217(176
6800$5<
%$&.*5281'
,03/,&$7,216
$3$7+)25:$5'
5()(5(1&(6
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
6800$5<
$VGHWDLOHGLQUHSRUWVFRPPLVVLRQHGDQGUHFHQWO\UHFHLYHGE\WKH5(063URJUDP&RPSDQLHV53&WKHUH
KDVEHHQDQH[WUDRUGLQDU\LQFUHDVHLQOHJLVODWLRQDQGSROLF\WRPDQDJHWKHSUHVFULSWLRQRIRSLRLGSURGXFWV
DFURVVWKH8QLWHG6WDWHV3UHVFULEHUVZKRJRWKURXJKFRQWLQXLQJHGXFDWLRQ&(SURJUDPVRQRSLRLGVDUH
VLPXOWDQHRXVO\UHFHLYLQJLQIRUPDWLRQIURPWKHKHDOWKFDUHRUJDQL]DWLRQVWKDWHPSOR\WKHPDVZHOODVIURP
LQVXUHUVVWDWHVWKH)HGHUDOJRYHUQPHQWDQGVWDWHPHGLFDOERDUGV0DQ\RIWKHVHRUJDQL]DWLRQVDOVRVHHNWR
LQIOXHQFHRSLRLGSUHVFULELQJSUDFWLFHVWKURXJKUHVWULFWLRQVRQSUDFWLFH7KHFRQVHTXHQWFKDQJHVPD\DIIHFWWKH
IHDVLELOLW\RISRSXODWLRQOHYHODVVHVVPHQWVRIWKHLPSDFWRI&(SURJUDPV
8VXDOPHWKRGVIRUGLUHFWDVVHVVPHQWRIWKHLPSDFWRI&(RQSUHVFULEHUEHKDYLRUPD\KDYHEHFRPHLQHIIHFWLYH
LQWKHFXUUHQW86HQYLURQPHQW)LUVWWKHUHPD\QRWEHLQIRUPDWLYHFRQFXUUHQWFRPSDULVRQJURXSV7KHFXUUHQW
UHTXLUHPHQWVIRURSLRLGVSHFLILF&(IURPVWDWHPHGLFDOERDUGVUHPRYHWKHSRVVLELOLW\RIFRPSDULQJSHUVRQV
ZKRXQGHUJR5(06FRPSOLDQW&(DJDLQVWDQXQWUDLQHGFRQWUROJURXS6XFKXQWUDLQHGSUHVFULEHUVDVGR
UHPDLQLQWKHDFWLYHPHGLFDOSRSXODWLRQPD\EHVRXQUHSUHVHQWDWLYHDVWRVD\QRWKLQJDERXWWKHFRXQWHUIDFWXDO
³:KDWZRXOGKDYHEHHQWKHSHUIRUPDQFHRIWKHUHFLSLHQWVRIWUDLQLQJKDGWKH\QRWUHFHLYHGWUDLQLQJ"´
7KHVHFRQGXVXDOFRPSDULVRQWHFKQLTXHLVDQH[DPLQDWLRQRISUDFWLFHEHIRUHDQGDIWHUWUDLQLQJ7KLVDSSURDFK
LVKHDYLO\LQIOXHQFHGE\FRQFXUUHQWWUHQGVLQSUDFWLFHZKLFKFDQPDVTXHUDGHDVDEHIRUHDIWHUHIIHFWRI&(,I
WKHWUHQGVDUHVXIILFLHQWO\VWDEOHDQGLIWKHLUGULYHUVDUHZHOOXQGHUVWRRGVWDWLVWLFDODGMXVWPHQWPD\EHDEOHWR
UHPRYHWKHLUHIIHFWV,QWKHSUHVHQWVHWWLQJRIKXQGUHGVRIQHZODZVDQGSROLFLHVGLIIHULQJDFURVVWKHQDWLRQ
DQDVVXPSWLRQWKDWWKHUHVXOWLQJWUHQGVFDQEHDFFXUDWHO\PRGHOHGLVDVSLUDWLRQDODWEHVWDQGPD\EH
IRROKDUG\
7KHUHDUHH[WUDRUGLQDU\UHVRXUFHVIRUPRQLWRULQJGUXJSUHVFULSWLRQLQWKH86DVDZKROHDQGSDWLHQWFDUHIRU
ODUJHVHJPHQWVRIWKHSRSXODWLRQ
7KHEHVWFXUUHQWVWUDWHJ\PD\EHWRDJJUHVVLYHO\PRQLWRUSUHVFULSWLRQSDWWHUQVDJDLQVW&'&JXLGHOLQHVVWDWH
E\VWDWHDQG\HDUE\\HDU7KHPRQLWRULQJZLOOSHUPLWVWDNHKROGHUVWRDVVHVVWKHQHWLPSDFWRIWKHIRUFHVWKDW
DUHFKDQJLQJRSLRLGSUDFWLFHLQWKH86,PSRUWDQWUHJLRQDODQGVHFXODUHIIHFWVSURSHUO\OLQNHGWRLQIRUPDWLRQ
RQSRSXODWLRQOHYHOPD\DOVRSURYHLQVWUXFWLYHIRUWKHFUHDWLRQRIEHWWHUODZVDQGSROLFLHV
7KHFRQVLGHUDWLRQVDULVLQJIURPWKHQHZO\UHFHLYHGUHSRUWVRQWKHODQGVFDSHRIRSLRLGSUHVFULSWLRQFRQWUROLQ
WKH86GRQRWLQYDOLGDWHWKHDQDO\VLVRUUHFRPPHQGDWLRQVRIRXU-XO\UHSRUW7KH\GRKRZHYHUSRLQWWR
WKHZLVGRPRIIRFXVLQJILUVWRQFKDUDFWHUL]LQJWKHUHJLRQDODQGVHFXODUWUHQGVDVUHFRPPHQGHGWKHUH7KH
DSSDUHQWPDJQLWXGHRIWKHHQYLURQPHQWDOIDFWRUVWKDWDUHGULYLQJSRVVLEOHFKDQJHVPD\KRZHYHUPHDQWKDW
GLUHFWDVVHVVPHQWRIEHKDYLRUVLQGXFHGE\LQGLYLGXDO&(SURJUDPVZLOOEHLQIHDVLEOH
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
%$&.*5281'
2Q-XO\:+,6&21VXEPLWWHGWRWKH53&D:KLWH3DSHURQWKHHYDOXDWLRQRI5(06FRPSOLDQW&(
SURJUDPV 7KHNH\PHVVDJHVZHUH
'DWDIRUHYDOXDWLQJRSLRLGSUHVFULELQJDQGSDWLHQWPDQDJHPHQWH[LVWIRUODUJHVHJPHQWVRIWKH86
SRSXODWLRQ
7KH&'&KDVSURYLGHGJXLGHOLQHVIRUVXLWDEOHSRSXODWLRQOHYHOHQGSRLQWVWRDVVHVVERWKWKHTXDOLW\RI
RSLRLGSUHVFULELQJDQGWKHPDQDJHPHQWRISDWLHQWVZKRUHFHLYHRSLRLGSURGXFWV
$VWUDLJKWIRUZDUGFRQFHSWXDOIUDPHZRUNSURYLGHVWKHEDVLVIRUDVWDWLVWLFDOPRGHOWKDWFDQOLQN
&'&HQGSRLQWVWRVWDWLFDQGWLPHYDU\LQJIDFWVDERXWSUHVFULEHUVSDWLHQWVDQGWKHSUHVFULELQJ
HQYLURQPHQW
(YDOXDWLRQRI&(UHTXLUHVWKHLQWHJUDWLRQRI&(FRPSOHWLRQGDWDIRULQGLYLGXDOSUHVFULEHUVLQWRWKH
H[LVWLQJGDWDV\VWHPV
7KHUHFRPPHQGDWLRQRIWKH:KLWH3DSHUZDVWRXVHDSURSRVHGFRQFHSWXDOIUDPHZRUNIRUWKHGHWHUPLQDQWVRI
RSLRLGSUHVFULELQJWKDWLQFRUSRUDWHVSUHVFULEHUSDWLHQWDQGHQYLURQPHQWDOIDFWRUVLQFOXGLQJSDVWKLVWRU\IRU
HDFKDVWKHEDVLVIRUVWDWLVWLFDOPRGHOLQJRIRSLRLGSUHVFULSWLRQDQGSDWLHQWPDQDJHPHQWSUDFWLFHVRYHUWLPH
7KHQH[WVWHSZDVWRVXSHULPSRVHRQWKDWPRGHOLQGLYLGXDOGDWDRQFRPSOHWLRQRI5(06FRPSOLDQW&(VRDV
WRDVVHVVWKHPDUJLQDOHIIHFWRI5(06FRPSOLDQW&(RQSUHVFULELQJDQGSDWLHQWPDQDJHPHQW
,Q-XO\WKH53&UHFHLYHGDGUDIWUHSRUWRQWKHODQGVFDSHRI&(UHODWHGWRRSLRLGSUHVFULELQJDQGSDWLHQW
PDQDJHPHQWLQWKH86 7KHUHSRUWHQXPHUDWHVHYHU\VWDWHPHGLFDOERDUG¶V&(UHTXLUHPHQWVIRUGRFWRUVRI
PHGLFLQHDQGRVWHRSDWK\SK\VLFLDQDVVLVWDQWVSRGLDWULVWVQDWXURSDWKVQXUVHVGHQWLVWVRSWRPHWULVWVDQG
SKDUPDFLVWV7KHUHSRUWLGHQWLILHVDQGSURYLGHVLQIRUPDWLRQRQFXUUHQWO\DFWLYH&(SURJUDPVUHODWHGWR
RSLRLGV)LQDOO\LWSURYLGHVLQIRUPDWLRQRQVXEVWDQWLDO&(UHTXLUHPHQWE\KHDOWKV\VWHPVLQFOXGLQJWKH86
'HSDUWPHQWRI'HIHQVH9HWHUDQV$GPLQLVWUDWLRQ,QGLDQ+HDOWK6HUYLFHVDQGODUJHQRQJRYHUQPHQWDO
KHDOWKV\VWHPV
$GGLWLRQDOO\WKH53&UHFHLYHGDILQDOUHSRUWRQ³*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ
2SLRLG3UHVFULELQJ´RQ-XO\ 7KHIROORZLQJH[FHUSWIURPWKHUHSRUW¶V2YHUYLHZ
SURYLGHVWKHIODYRURIWKHGRFXPHQWDWLRQ
³)LYHKXQGUHGWZHQW\VL[SROLFLHVUHODWHGWRRSLRLGSUHVFULELQJZHUHDGRSWHGIURP±
3ROLFLHVLQFOXGHIHGHUDOVWDWXWHVVWDWHVWDWXWHVDQGUHJXODWLRQVVWDWHJXLGHOLQHVIURPOLFHQVLQJDJHQFLHV
DQGGHSDUWPHQWVRIKHDOWKIHGHUDOJXLGHOLQHVDQGSROLFLHVIURP&'&&069$++61$6(0DQG
)'$6WDWH0HGLFDLGRSLRLGSROLFLHVDQGLQLWLDWLYHVIURPWKH3UHVLGHQWRIWKH8QLWHG6WDWHVDQG
QXPHURXV*RYHUQRUV´
$OORIWKHSROLFLHVDUHVXPPDUL]HGLQWKHUHSRUWZLWKOLQNVWRWKHIXOOWH[WV
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
,03/,&$7,216
7KHDQDO\VHVRI&(SURSRVHGLQWKH:+,6&21:KLWH3DSHUDURVHIURPDFRQFHSWXDOIUDPHZRUNWKDW
UHFRJQL]HGWKDWSUHVFULEHUEHKDYLRUVFRXOGEHFRQGLWLRQHGE\DZLGHUDQJHRIFXUUHQWDQGKLVWRULFDOIDFWRUV
ZKRVHUHODWLRQVZHUHVNHWFKHGLQWKH:KLWH3DSHU¶V)LJXUHUHSURGXFHGEHORZ
)LJXUH3RVVLEOHFDXVDOSDWKZD\VIRUWKHHYDOXDWLRQRIFRQWLQXLQJHGXFDWLRQLQWHUYHQWLRQV
&RPSOHWLRQGDWH5(06FRPSOLDQW&(LVNQRZQIRUHDFKFDUHJLYHU7KLVGHWHUPLQHVW
3UHVFULELQJSUDFWLFHVSDWLHQWSURILOHVDQGSDWLHQWRXWFRPHVDUHDOOPHDVXUDEOHDWW
&DOHQGDUWLPHGDWHUHJLRQDQGGDWHE\UHJLRQLQWHUDFWLRQVDUHSUR[LHVIRUHQYLURQPHQWDOIDFWRUV
3URYLGHUQRQWLPHYDU\LQJFKDUDFWHULVWLFVDUHNQRZQE\WKHSUR[LHVRIVSHFLDOW\DJHVH[
%R[HVZLWKVROLGRXWOLQHVUHIHUWRREVHUYDEOHV'RWWHGOLQHVHQFORVHIDFWRUVWKDWDUHQRWREVHUYHGGLUHFWO\
7KH:KLWH3DSHUQRWHGWKDWWKHUHZHUHGDWDDYDLODEOHLQWKH86WRFKDUDFWHUL]HSUHVFULELQJEHKDYLRU
HVVHQWLDOO\DFURVVWKHQDWLRQDQGWKDWWKHUHZHUHODUJHERGLHVRILQIRUPDWLRQIURPKHDOWKLQVXUHUVDQGPHGLFDO
FDUHRUJDQL]DWLRQVWKDWFRXOGEHEURXJKWWRWKHDQDO\VLVRISDWLHQWPDQDJHPHQW7DNLQJWKHNQRZQGDWD
HOHPHQWVIURPWKHVHVRXUFHVDQGUHFRPPHQGDWLRQIURPWKH86&HQWHUVIRU'LVHDVH&RQWUROIRUSRSXODWLRQ
PRQLWRULQJRIRSLRLGSUHVFULELQJDQGSDWLHQWPDQDJHPHQWDQGSODFLQJWKHVHZLWKLQDVWDWLVWLFDOVWUXFWXUH
EDVHGRQWKHFRQFHSWXDOIUDPHZRUNRI)LJXUHWKH:KLWH3DSHUSURSRVHGRYHUDOODSSURDFKWKDWFRQVLVWHG
ILUVWLQHVWLPDWLQJWKHG\QDPLFVRIWKHV\VWHPRI)LJXUHDEVHQW&(DQGWKHQDGGLQJDUHSUHVHQWDWLRQRIWKH
LPPHGLDWHDQGVXEse XHQWHIIHFWVRI&(WUDLQLQJIRULQGLYLGXDOSUHVFULEHUVZKRVHWLPHRI5(06FRPSOLDQW
&(ZDVNQRZQDQGOLQNDEOHWRRWKHUDYDLODEOHLQIRUPDWLRQ
7KHVWDWLVWLFDOPRGHOVSURSRVHGLQWKH:KLWH3DSHUVXEVXPHGWKHWZRXVXDOPHWKRGVIRUGLUHFWDVVHVVPHQWRI
&(7KHILUVWZDVWKHDVVXPSWLRQRILQIRUPDWLYHFRQFXUUHQWFRPSDULVRQJURXSVRIDFWLYHSUHVFULEHUVZKRKDG
QRWDWWHQGHGRSLRLGVSHFLILF&(SURJUDPVRUZKRVHQRQ5(06FRPSOLDQW&(IDLOHGWRPHHWWKHVWDQGDUGVRI
WKH)'$%OXHSULQW 7KHHIIHFWRI&(YHUVXVDEVHQFHRI5(06FRPSOLDQW&(ZDVWREHPRGHOHGZLWKDVHULHV
RILQGLFDWRUWHUPVZLWKFRQWUROIRUDOOWKHRWKHUGHWHUPLQDQWVRI&'&SURSRVHGRXWFRPHV
$QDVVXPSWLRQRIWKHPRGHOLQJSURSRVHGLQWKH:KLWH3DSHUZDVWKDW5(06FRPSOLDQW&(ZDVVSHFLDOLIQRW
XQL ue LQWKHFRPSOHWHQHVVRILQIRUPDWLRQRIIHUHGWRSDUWLFLSDQWV7KLVDVVXPSWLRQSHUPLWWHGRWKHU&(
SURJUDPVWREHHLWKHULJQRUHGRUWUHDWHGLQHIIHFWDVDQHQYLURQPHQWDOIDFWRU7KHQHZO\DYDLODEOHGHWDLOHGRQ
WKHFRPSRQHQWVRIWKHVHSURJUDPVVXJJHVWVWKDWPDQ\LIDXGLWHGZRXOGEHIRXQGWRPHHWWKHVDPHFULWHULDRI
WKH)'$%OXHSULQWDVWKH53&VSRQVRUHGSURJUDPV$JDLQVWDEDFNJURXQGRIH[LVWLQJ&(SURJUDPVRQ
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
RSLRLGVWKHDVVXPSWLRQWKDWWKHHIIHFWVRIDOWHUQDWLYHSURJUDPVFRXOGEHLJQRUHGLQHYDOXDWLQJWKH
53&VSRQVRUHG5(06FRPSOLDQW&(SURJUDPVVHHPVLPSODXVLEOH
6XFKXQWUDLQHGSUHVFULEHUVDVPD\UHPDLQLQWKHDFWLYHPHGLFDOSRSXODWLRQZLOOEHVRXQUHSUHVHQWDWLYHDVWR
VD\QRWKLQJDERXWWKHFRXQWHUIDFWXDORIZKDWZRXOGKDYHEHHQWKHSHUIRUPDQFHRIWKHUHFLSLHQWVRIWUDLQLQJ
KDGWKH\QRWUHFHLYHGWUDLQLQJ
7KHVHFRQGXVXDOFRPSDULVRQWHFKQLTXHLVDQH[DPLQDWLRQRISUDFWLFHEHIRUHDQGDIWHUWUDLQLQJ7KLVDSSURDFK
LVKHDYLO\LQIOXHQFHGE\FRQFXUUHQWWUHQGVLQSUDFWLFHZKLFKFDQPDVTXHUDGHDVDEHIRUHDIWHUHIIHFWRI&(,I
WKHVHWUHQGVDUHVXIILFLHQWO\VWDEOHDQGZHOOXQGHUVWRRGVWDWLVWLFDODGMXVWPHQWPD\EHDEOHWRUHPRYHWKHLU
HIIHFWV,QWKHSUHVHQWVHWWLQJRIOLWHUDOO\KXQGUHGVRIQHZODZVDQGSROLFLHVGLIIHULQJDFURVVWKHQDWLRQDQ
DVVXPSWLRQWKDWWKHVHFDQEHDFFXUDWHO\PRGHOHGJRLQJIRUZDUGLVDVSLUDWLRQDODWEHVWDQGPD\EHIRROKDUG\
7KH:KLWH3DSHUGLGQRWSURYLGHGHWDLORQWKHQDWXUHRIWKHHQYLURQPHQWDOIDFWRUVRI)LJXUH,WVXJJHVWHG
LQVWHDGWKDWWKHLQLWLDOPRGHOLQJVKRXOGDOORZIRUDUELWUDU\VHFXODUHIIHFWVWKDWPLJKWYDU\ZLWKLQVWDWHV7KHUH
ZDVDQDVVXPSWLRQWKDWWKLVOHYHORIGHWDLOZRXOGEHDVXIILFLHQWDFFRXQWLQJIRUWKHHIIHFWVH[WHUQDOWRWKH&(
SURJUDPV,WLVXQOLNHO\WKDWVXFKPRGHOLQJFRXOGFRUUHFWIRUWKHHYROYLQJWHPSRUDOHIIHFWVRIWKH
LGHQWLILHGSROLFLHVLQVXIILFLHQWGHWDLOWRSHUPLWDWWULEXWLRQRIUHVLGXDOWHPSRUDOFKDQJHVLQSUHVFULEHUEHKDYLRU
WRWKHLUSDUWLFXODU&(SURJUDPV
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
$3$7+)25:$5'
7KH53&DUHSURSRVLQJWRFRQGXFWRQJRLQJPRQLWRULQJRISUHVFULSWLRQSUDFWLFHVLQWKH86:HFRQFXUZLWK
WKDWLGHDVSHFLI\LQJWKDWWKHDQDO\VHVUHFRJQL]HWKDWWKHGHWHUPLQDQWVRISUHVFULSWLRQSUDFWLFHDUHOLNHO\WR
KDYHVWURQJUHJLRQDODQGWHPSRUDOYDULDWLRQV5(06FRPSOLDQW&(LVOLNHO\WREHDSDUWRIWKHUHJLRQDODQG
WHPSRUDOGHWHUPLQDQWVRISUDFWLFHDQGSDWLHQWPDQDJHPHQWEXWWKHUHDSSHDUVWREHOLWWOHRSSRUWXQLW\WRVRUW
RXWWKHEHKDYLRUHIIHFWVRIWKHVSRQVRUHGSURJUDPV
$GGHQGXPWR:KLWH3DSHURQ&((YDOXDWLRQ $XJXVW
5()(5(1&(6
:DONHU$0³2SWLRQVIRU(YDOXDWLQJWKH,PSDFWRI5(06&RPSOLDQW&RQWLQXLQJ(GXFDWLRQRQ2SLRLG
3UHVFULELQJ3UDFWLFHV3DWLHQW0DQDJHPHQWDQG3DWLHQW2XWFRPHV´:+,6&215HSRUWWR5(063URJUDP
&RPSDQLHV-XO\
&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ4XDOLW\,PSURYHPHQWDQG&DUH&RRUGLQDWLRQ,PSOHPHQWLQJ
WKH&'&*XLGHOLQHIRU3UHVFULELQJ2SLRLGVIRU&KURQLF3DLQ1DWLRQDO&HQWHUIRU,QMXU\3UHYHQWLRQDQG
&RQWURO'LYLVLRQRI8QLQWHQWLRQDO,QMXU\3UHYHQWLRQ$WODQWD*$
5.7&RQVXOWLQJ6HUYLFHV³&RQWLQXLQJ(GXFDWLRQ3DLQ0DQDJHPHQWDQG6DIH2SLRLG3UHVFULELQJ´'UDIW
5HSRUW-XO\
5.7&RQVXOWLQJ//&³*RYHUQPHQWDODQG1RQ*RYHUQPHQWDO3ROLFLHV$IIHFWLQJ2SLRLG3UHVFULELQJ
´3UHVHQWHGWRWKH0HWULFV6XEWHDP2SLRLG$QDOJHVLFV5(063URJUDP$JUHHPHQW3DUWLFLSDQWV
-XO\
86)RRGDQG'UXJ$GPLQLVWUDWLRQ)'$(GXFDWLRQ%OXHSULQWIRU+HDOWK&DUH3URYLGHUV,QYROYHGLQWKH
7UHDWPHQWDQG0RQLWRULQJRI3DWLHQWVZLWK3DLQ6HSWHPEHU
KWWSVZZZIGDJRYPHGLDGRZQORDGDFFHVVHG-XO\