5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

7$1<$ / 0$5&+:,16., ; 7(55, s .21,(&=1<  :(676,'( 027+(56RQ   1R EHKDOIRIDOOVLPLODUO\VLWXDWHG  SHUVRQV !  3ODLQWLIIV$SSHOOHHV   Y   '28*/$6 ( +2:$5'LQKLV   RIILFLDOFDSDFLW\DV'LUHFWRURI  WKH)DPLO\,QGHSHQGHQFH  $JHQF\RI0LFKLJDQD  JRYHUQPHQWDOGHSDUWPHQWRI  WKH6WDWHRI0LFKLJDQ  'HIHQGDQW$SSHOODQW    1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW%D\&LW\ 1R  n'DYLG0/DZVRQ'LVWULFWsXGJH $UJXHG sDQXDU\ 'HFLGHGDQG)LOHG 2FWREHU

  0DUFKZLQVNLHWDOY+RZDUG 1R

%HIRUH 68+5+(,15,&+6,/(5DQG%$7&+(/'(5 &LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 0RUULVs.ODX2)),&(2)7+($77251(< *(1(5$/ 'HWURLW 0LFKLJDQ IRU $SSHOODQW  5REHUW $ 6HGOHU 'HWURLW 0LFKLJDQ IRU $SSHOOHHV  21 %5,() 0RUULVs.ODX2)),&(2)7+($77251(<*(1(5$/ 'HWURLW0LFKLJDQIRU$SSHOODQW5REHUW$6HGOHU'HWURLW 0LFKLJDQ *UDKDP $ %R\G $&/8 '58* 32/,&< /,7,*$7,21 352s(&7 1HZ +DYHQ &RQQHFWLFXW IRU $SSHOOHHV  3DXO ' .DPHQDU :$6+,1*721 /(*$/ )281'$7,21:DVKLQJWRQ'&IRU$PLFXV&XULDH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB $/,&( 0 %$7&+(/'(5 &LUFXLW sXGJH  'HIHQGDQW DSSHOODQW 'RXJODV +RZDUG WKH GLUHFWRU RI WKH 0LFKLJDQ )DPLO\,QGHSHQGHQFH$VVLVWDQFHSURJUDP m),$l DSSHDOV WKHGLVWULFWFRXUWjVJUDQWRIDSUHOLPLQDU\LQMXQFWLRQEDVHGRQ 0LFKLJDQjV IDLOXUH WR LGHQWLI\ D mVSHFLDO QHHGl UHODWHG WR SXEOLF VDIHW\ WKDW ZRXOG DOORZ WKH VWDWHnZLWKRXW D UHTXLUHPHQW RI LQGLYLGXDOL]HG VXVSLFLRQn WR GUXJ WHVW WKH SODLQWLIIDSSHOOHHVDFODVVRISHUVRQVHOLJLEOHIRURUUHFHLYLQJ ZHOIDUHDVVLVWDQFHDQGVXEMHFWWRGUXJWHVWLQJXQGHU0,&+ &203 /$:6 $11†O%HFDXVHZHILQGWKDWVDIHW\ QHHGRQO\EHDIDFWRULQWKHVWDWHjVVSHFLDOQHHG WKDWVHFWLRQ OLVVXSSRUWHGE\DSXEOLFVDIHW\VSHFLDOQHHG DQGWKDW XQGHU:\PDQYsDPHV86    WKHFRQGLWLRQ DWWDFKHGE\VHFWLRQOWRWKHUHFHLSWRIZHOIDUHEHQHILWV LVFRQVWLWXWLRQDOZHUHYHUVH  0DUFKZLQVNLHWDOY+RZDUG 1R 1R 0DUFKZLQVNLHWDOY+RZDUG 

)RUDOORIWKHVHUHDVRQVZHFRQFOXGHWKDWWKHGLVWULFWFRXUW , HUUHGLQLVVXLQJWKHSUHOLPLQDU\LQMXQFWLRQ$FFRUGLQJO\ZH 5(9(56(WKHMXGJPHQWRIWKHGLVWULFWFRXUW ,Q &RQJUHVVSDVVHGWKH3HUVRQDO5HVSRQVLELOLW\DQG :RUN 2SSRUWXQLW\ 5HFRQFLOLDWLRQ $FW m35:25$l  WKDW UHSODFHGWKHSUHYLRXVZHOIDUHHQWLWOHPHQWSURJUDPZLWKWKH 7HPSRUDU\ $VVLVWDQFH IRU 1HHG\ )DPLOLHV SURJUDP m7$1)l 3XE/ †6WDW   FRGLILHG DW  86& †  HW VHT   $PRQJ WKH JHQHUDO SXUSRVHV IRU WKH 35:25$ LV WKH JRDO RI LQFUHDVLQJ WKH IOH[LELOLW\ RI WKH VWDWHV LQ SURYLGLQJ DVVLVWDQFH WR QHHG\ IDPLOLHV mVR WKDW FKLOGUHQ PD\ EH FDUHG IRU LQ WKHLU RZQ KRPHVRULQWKHKRPHVRIUHODWLYHVl86&† D   $VWDWHSDUWLFLSDWLQJLQWKH7$1)SURJUDPPXVWVXEPLWWRWKH 6HFUHWDU\RI+HDOWKDQG+XPDQ6HUYLFHVDZULWWHQGRFXPHQW WKDW LQFOXGHV DPRQJ RWKHU WKLQJV WKH VWDWHjV SODQ IRU D SURJUDPWKDWZLOOmSURYLGH>@DVVLVWDQFHWRQHHG\IDPLOLHVZLWK RU H[SHFWLQJ  FKLOGUHQ DQG SURYLGH>@ SDUHQWV ZLWK MRE SUHSDUDWLRQ ZRUN DQG VXSSRUW VHUYLFHV WR HQDEOH WKHP WR OHDYH WKH SURJUDP DQG EHFRPH VHOIVXIILFLHQWl   86& † $  2QO\QHHG\IDPLOLHVZKRKDYHRUDUHH[SHFWLQJ FKLOGUHQ DUH HOLJLEOH IRU EHQHILWV XQGHU WKLV SURJUDP 86&†  $ L 35:25$H[SOLFLWO\SURYLGHVWKDW WKH$FWmVKDOOQRWEHLQWHUSUHWHGWRHQWLWOHDQ\LQGLYLGXDORU IDPLO\WRDVVLVWDQFHXQGHUDQ\6WDWHSURJUDPIXQGHGXQGHU WKLVSDUWl86&† E 7$1)SHUPLWVVWDWHVWRGUXJ WHVW DSSOLFDQWV IRU DQG UHFLSLHQWV RI WKHVH EHQHILWV DQG WR LPSRVHVDQFWLRQVZKHUHXVHRIFRQWUROOHGVXEVWDQFHVLVIRXQG 86&†E ,Q 0LFKLJDQ WKH )DPLO\ ,QGHSHQGHQFH $JHQF\ SURYLGHV 7$1)EORFNJUDQWPRQH\VWKURXJKWKH)DPLO\,QGHSHQGHQFH 3URJUDP m),3l  WR HOLJLEOH IDPLOLHV QHHGLQJ DVVLVWDQFH 6HFWLRQ    RI 0,&+ &203 /$:6 $11 H[SUHVVO\ SHUPLWVWKH),$WRFRQGLWLRQHOLJLELOLW\IRU),3DVVLVWDQFHRQ WKH UHFLSLHQWjV EHLQJ WHVWHG IRU VXEVWDQFH DEXVH  6HFWLRQ   UHTXLUHVWKH),$mWRLPSOHPHQWDSLORWSURJUDPRI VXEVWDQFH DEXVH WHVWLQJ DV D FRQGLWLRQ IRU IDPLO\ LQGHSHQGHQFH DVVLVWDQFH HOLJLELOLW\ LQ DW OHDVW  FRXQWLHV LQFOXGLQJUDQGRPVXEVWDQFHDEXVHWHVWLQJl  0DUFKZLQVNLHWDOY+RZDUG 1R 1R 0DUFKZLQVNLHWDOY+RZDUG 

7KH),3jV3URJUDP(OLJLELOLW\0DQXDO m3(0l ZKLFKVHWV :KHWKHUZHYLHZWKHFRQGLWLRQLPSRVHGE\WKHVWDWHLQWKLV RXWWKHSURJUDPjVJRDOVQRWHVWKDWm>E@HFDXVHKDYLQJVWURQJ FDVH DV WKH UHTXLUHPHQW WKDW WKH UHFLSLHQW RI WKH EHQHILWV IDPLO\ UHODWLRQVKLSV PD\ EH PRUH GLIILFXOW LI WKHUH LV VXEPLW WR WKH UDQGRP DQG VXVSLFLRQOHVV GUXJ WHVWV RU WKH VXEVWDQFHDEXVHDQGEHFDXVHVXEVWDQFHDEXVHLVDEDUULHU UHTXLUHPHQW WKDW WKH UHFLSLHQW QRW XVH FRQWUROOHG WR HPSOR\PHQWl WKH VWDWH RI 0LFKLJDQ KDV SLORWHG GUXJ VXEVWDQFHVnLQZKLFKHYHQWWKHGUXJWHVWLVWKHPHFKDQLVP WHVWLQJ8QGHUWKHSLORWSURJUDPDSSOLFDQWVIRUEHQHILWVDUH E\ZKLFKWKHVWDWHHQVXUHVFRPSOLDQFHZLWKWKHFRQGLWLRQn WHVWHG SULRU WR UHFHLYLQJ EHQHILWV  HYHU\ VL[ PRQWKV WZHQW\ ZH WKLQN WKDW WKH VWDWH KDV PDGH D VWURQJ VKRZLQJ WKDW SHUFHQWRIUHFLSLHQWVDUHUDQGRPO\VHOHFWHGIRUGUXJVFUHHQLQJ 0LFKLJDQj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mVSHFLDOQHHGlZDVWKHRQO\LQWHUHVW WKHSXEOLF,VVXDQFHRIWKHLQMXQFWLRQZRXOGZRUNWRWKZDUW WKDW ZRXOG MXVWLI\ D VXVSLFLRQOHVV VHDUFK  $OWHUQDWLYHO\ WKDWLQWHUHVWDQGWRPDNHLWPXFKPRUHGLIILFXOWIRUWKHVWDWH +RZDUGFRQWHQGVWKDW0LFKLJDQjVLQWHUHVWLQWKHSUHYHQWLRQ WR HQVXUH WKDW WKH SXEOLF DW ODUJH LV QRW KDUPHG E\ ),3 RI FKLOG DEXVH DQG QHJOHFW LV D VXIILFLHQW SXEOLF VDIHW\ UHFLSLHQWVj XVH RI WKRVH PRQH\V IRU LOOHJDO DQG LQGHHG FRQFHUQ FULPLQDOSXUSRVHV  0DUFKZLQVNLHWDOY+RZDUG 1R 1R 0DUFKZLQVNLHWDOY+RZDUG 

$FFRUGLQJO\ ZH FRQFOXGH WKDW WKH SODLQWLIIV KDYH QRW ,, VKRZQDVWURQJOLNHOLKRRGRIVXFFHVVRQWKHPHULWVRIWKHLU FODLP :H UHYLHZ WKH GLVWULFW FRXUWjV JUDQW RI D SUHOLPLQDU\ LQMXQFWLRQ IRU DQ DEXVH RI GLVFUHWLRQ  %OXH &URVV  %OXH :H WXUQ QH[W WR WKH RWKHU IDFWRUV WKH GLVWULFW FRXUW ZDV 6KLHOG0XWRI2KLRY%OXH&URVV %OXH6KLHOG$VVjQ UHTXLUHG WR ZHLJK LQ GHWHUPLQLQJ ZKHWKHU WR LVVXH WKH )G WK&LU  m$GLVWULFWFRXUWDEXVHVLWV SUHOLPLQDU\LQMXQFWLRQEHJLQQLQJZLWKZKHWKHUWKHSODLQWLIIV GLVFUHWLRQZKHQLWUHOLHVRQFOHDUO\HUURQHRXVILQGLQJVRIIDFW KDYHGHPRQVWUDWHGWKDWWKH\ZLOOVXIIHULUUHSDUDEOHLQMXU\LI RUZKHQLWLPSURSHUO\DSSOLHVWKHODZRUXVHVDQHUURQHRXV WKHLQMXQFWLRQLVGHQLHG:HFRQFOXGHWKDWWKH\KDYHQRW OHJDOVWDQGDUG8QGHUWKLVVWDQGDUGWKLVFRXUWPXVWUHYLHZ WKHGLVWULFWFRXUW VOHJDOFRQFOXVLRQVGHQRYRDQGLWVIDFWXDO 7KHSODLQWLIIVjFODLPHGLQMXU\LVWKHYLRODWLRQRIWKHLU)RXUWK ILQGLQJV IRU FOHDU HUURUl  2ZQHU2SHUDWRU ,QGHS 'ULYHUV $PHQGPHQW ULJKW WR EH IUHH IURP XQUHDVRQDEOH VHDUFKHV $VVjQY%LVVHOO)G   WK&LU  LQWHUQDO (YHQ ZHUH ZH WR FRQFOXGH WKDW WKH VWDWH FRXOG QRW VKRZ D FLWDWLRQVDQGTXRWDWLRQPDUNVRPLWWHG  VSHFLDOQHHGVXIILFLHQWWRMXVWLI\WKHGUXJWHVWLQJZHZRXOG QRQHWKHOHVVILQGWKDWWKHSODLQWLIIVKDYHQRWVKRZQWKDWWKH :KHQ GHWHUPLQLQJ ZKHWKHU WR LVVXH D SUHOLPLQDU\ GUXJWHVWLQJLVDQXQUHDVRQDEOHVHDUFK5DWKHUZHWKLQNWKDW LQMXQFWLRQDGLVWULFWFRXUWPXVWFRQVLGHUIRXUIDFWRUV m  WKHHYLGHQFHVXJJHVWVWKDWWKH0LFKLJDQSURJUDPLPSRVHVD ZKHWKHUWKHPRYDQWKDVDµVWURQJjOLNHOLKRRGRIVXFFHVVRQ FRQGLWLRQRQWKHSODLQWLIIVjUHFHLYLQJWKHSURJUDPEHQHILWV WKHPHULWV   ZKHWKHUWKHPRYDQWZRXOGRWKHUZLVHVXIIHU DQG WKDW WKHUH KDV EHHQ QR VKRZLQJ WKDW WKH FRQGLWLRQ LV LUUHSDUDEOH LQMXU\    ZKHWKHU LVVXDQFH RI D SUHOLPLQDU\ XQUHDVRQDEOH2XUFRQFOXVLRQLVSUHPLVHGRQWKHODQJXDJHRI LQMXQFWLRQ ZRXOG FDXVH VXEVWDQWLDO KDUP WR RWKHUV  DQG   86& †  E  ZKLFK H[SOLFLWO\ QHJDWHV DQ\ FODLP RI ZKHWKHUWKHSXEOLFLQWHUHVWZRXOGEHVHUYHGE\LVVXDQFHRID HQWLWOHPHQWWRDQ\VWDWHSURJUDPIXQGHGXQGHUWKH35:25$ SUHOLPLQDU\LQMXQFWLRQl/HDU\Y'DHVFKQHU)G  DQGWKHUHDVRQLQJRIWKH&RXUWLQ:\PDQYs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mVSHFLDOQHHGlIRULWVGUXJWHVWLQJSURJUDPDQGZKHWKHU 7KH &RXUW FRQVLGHUHG WKH SXEOLF LQWHUHVW LQ DLGLQJ WKH WKHJRYHUQPHQWjVLQWHUHVWVRXWZHLJKWKHSODLQWLIIVjUHDVRQDEOH GHSHQGHQW FKLOGUHQ RI UHFLSLHQWV  WKH SXEOLF LQWHUHVW LQ H[SHFWDWLRQRISULYDF\9HURQLD6FK'LVWsY$FWRQ LQVXULQJ WKDW ZHOIDUH EHQHILWV DUH VSHQW RQ WKHLU SURSHU 86   6SHFLDOQHHGVDUHWKRVHJRYHUQPHQW REMHFWV WKHQRQLQWUXVLYHOLPLWHGPHDQVRIWKHVHDUFK WKH LQWHUHVWV WKDW JR mEH\RQG WKH QRUPDO QHHG IRU ODZ FLYLODQGQRQFULPLQDOQDWXUHRIWKHREMHFWVRIWKHLQIRUPDWLRQ HQIRUFHPHQWl  *ULIILQ Y :LVFRQVLQ  86   JDLQHG IURP WKH VHDUFK  WKH LPSUDFWLFDELOLW\ RI REWDLQLQJ D   7KH6XSUHPH&RXUWKDVUXOHGWKDWJRYHUQPHQWKDVD ZDUUDQW DQGWKHFRQVHQVXDOQDWXUHRIWKHKRPHYLVLWLGDW VSHFLDO QHHG WR FRQGXFW GUXJ WHVWLQJ LQ VHYHUDO GLIIHUHQW  DQG FRQFOXGHG WKDW WKH FRQGLWLRQ LWVHOI ZDV FLUFXPVWDQFHVZKHUHQRSDUWLFXODUL]HGVXVSLFLRQLVSUHVHQW UHDVRQDEOHDQGWKHSODLQWLIIZDVIUHHWRUHIXVHWRSHUPLWWKH WHVWLQJRIHPSOR\HHVRIWKH&XVWRPV6HUYLFHZKRDSSO\IRU YLVLWVEXWFRXOGQRWWKHQFRPSODLQDERXWWKHEHQHILWVjEHLQJ SRVLWLRQV GLUHFWO\ LQYROYLQJ LQWHUGLFWLRQ RI LOOHJDO GUXJV RU ZLWKKHOG SRVLWLRQVUHTXLULQJWKHDJHQWWRFDUU\ILUHDUPV1DWjO7UHDVXU\  0DUFKZLQVNLHWDOY+RZDUG 1R 1R 0DUFKZLQVNLHWDOY+RZDUG 

(PSOR\HHV8QLRQY9RQ5DDE 86   WHVWLQJ :HWXUQILUVWWRWKHFKDUDFWHURIWKHSULYDF\LQWUXVLRQ7KH RIUDLOURDGHPSOR\HHVLQYROYHGLQWUDLQDFFLGHQWV6NLQQHUY SURJUDP DW LVVXH KHUH UHTXLUHV DSSOLFDQWV DQG UDQGRPO\ 5\/DERU([HFXWLYHVj$VVjQ 86   WHVWLQJRI VHOHFWHG UHFLSLHQWV RI WKH ),3 EHQHILWV WR SURYLGH D XULQH VWXGHQW DWKOHWHV LQ DQ HIIRUW WR SUHYHQW WKH VSUHDG RI GUXJV VDPSOH/LNHWKHSURFHGXUHVDWLVVXHLQ(DUOV6&WDW DPRQJ WKH VWXGHQW SRSXODWLRQ 9HURQLD 6FK 'LVW s Y DQG6NLQQHU 86DWWKHV\VWHPKHUHDOORZV $FWRQ  86     DQG WHVWLQJ RI VWXGHQWV ZKR IRUXQREVHUYHGVDPSOHFROOHFWLRQDQGOLNHWKHWHVWVDSSURYHG SDUWLFLSDWH LQ FRPSHWLWLYH H[WUDFXUULFXODU DFWLYLWLHV %G RI E\WKH&RXUWLQ(DUOV6&WDWDQG$FWRQ (GXFRI,QGHS6FK'LVW1R RI3RWWDZDWRPLH&RXQW\Y 86DWWKHV\VWHPXWLOL]HGE\0LFKLJDQWHVWVRQO\IRU (DUOV6&W   7KLVFLUFXLWKDVKHOGWKDWD LOOLFLWGUXJVDQGGRHVQRWVHHNDQ\RWKHULQIRUPDWLRQ)LQDOO\ VFKRRO GLVWULFW KDV D VSHFLDO QHHG WR WHVW DSSOLFDQWV IRU DOO WKH WHVW UHVXOWV DUH UHOHDVHG RQO\ WR mD OLPLWHG FODVV RI  VDIHW\VHQVLWLYHSRVLWLRQVLQDVFKRROGLVWULFW.QR[&RXQW\ SHUVRQQHOZKRKDYHDQHHGWRNQRZlDQGDUH QRW XVHGIRU (GXF$VVjQY.QR[&RXQW\%GRI(GXF)G WK FULPLQDO SURFHHGLQJV  $FWRQ  86 DW   6HH DOVR &LU  WKDWDFLW\KDVDVSHFLDOQHHGWRWHVWLWVPXQLFLSDO (DUOV6&WDW$OORIWKHVHIDFWRUVSRLQWWRD EXVGULYHUV7DQNVY*UHDWHU&OHYHODQG5HJj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jV LQWHUHVW LQ SUHYHQWLQJ GUXJ &RXQW\ (GXF $VVjQ  )G DW    7KH IHGHUDO DEXVHZDVVXIILFLHQWWRMXVWLI\WKHWHVWLQJSURJUDPLQOLJKWRI JRYHUQPHQWSURYLGHVWKHSDUDPHWHUVZLWKLQZKLFKWKHVWDWHV WKHQDWLRQZLGHGUXJHSLGHPLFWKHHYLGHQFHSURYLGHGE\WKH PD\ DWWHPSW WR PHHW WKHLU JRDOV  7KH VWDWHV WKHPVHOYHV GLVWULFWWKDWGUXJDEXVHZDVDSUREOHPDPRQJLWVVWXGHQWVDQG KHDYLO\ UHJXODWH WKH SURYLVLRQ RI ZHOIDUH DVVLVWDQFH WKHmVSHFLDOUHVSRQVLELOLW\lXQGHUWDNHQE\WKHGLVWULFWWRFDUH $SSOLFDQWV IRU ZHOIDUH EHQHILWV DUH UHTXLUHG E\ WKHVH IRUWKHFKLOGUHQLQLWVFKDUJH(DUOV6&WDW UHJXODWLRQV WR UHOLQTXLVK LPSRUWDQW DQG RIWHQ SULYDWH 7KH &RXUW VDLG WKDW WKH VWXGHQWV KDG GLPLQLVKHG SULYDF\ LQIRUPDWLRQDQGDUHDZDUHWKDWWKHLUUHFHLSWRIWKHVHEHQHILWV LQWHUHVWVEHFDXVHRIWKHmSXEOLFVFKRROHQYLURQPHQWZKHUHWKH LVDFFRPSDQLHGE\DGLPLQLVKHGH[SHFWDWLRQRISULYDF\ZLWK 6WDWH LV UHVSRQVLEOH IRU PDLQWDLQLQJ GLVFLSOLQH KHDOWK DQG UHJDUGWRWKDWLQIRUPDWLRQ VDIHW\>DQGEHFDXVHV@FKRROFKLOGUHQDUHURXWLQHO\UHTXLUHGWR VXEPLW WR SK\VLFDO H[DPLQDWLRQV DQG YDFFLQDWLRQV DJDLQVW *LYHQ0LFKLJDQjVVWURQJLQWHUHVWLQHQVXULQJWKDWWKHSXEOLF GLVHDVHl  ,G DW   ([DPLQLQJ WKH FKDUDFWHU RI WKH PRQH\V LW H[SHQGV WKURXJK WKH ),3 DUH XVHG WR IRVWHU WKH VWXGHQWVjSULYDF\LQWHUHVWVWKH&RXUWIRXQGWKDWLQOLJKWRIWKH SXUSRVHV RI WKH ),3 DQG WR SURYLGH IRU WKH ZHOIDUH RI WKH PHWKRG IRU FROOHFWLQJ WKH WHVW VDPSOHVnXQREVHUYHG FKLOGUHQRIWKH),3UHFLSLHQWVDQGWKHSODLQWLIIVjGLPLQLVKHG XULQDWLRQnDQG WKH IDFW WKDW WKH WHVW GHWHUPLQHG RQO\ WKH H[SHFWDWLRQRISULYDF\WKHSODLQWLIIVKDYHQRWGHPRQVWUDWHG SUHVHQFH RI LOOLFLW GUXJV DQG WKH WHVW UHVXOWV ZHUH DYDLODEOH WKDWWKHLUSULYDF\LQWHUHVWVDUHRXWZHLJKHGE\WKHLQWHUHVWVRI RQO\WRVFKRROSHUVRQQHODQGRQO\RQDmQHHGWRNQRZlEDVLV WKHVWDWH DQ\LQWUXVLRQLQWRDVWXGHQWjVSULYDF\ZDVmPLQLPDO>@l,GDW $OVRLPSRUWDQWZDVWKHIDFWWKDWDIDLOHGGUXJWHVWKDG QR FULPLQDO FRQVHTXHQFHV EXW UHVXOWHG DW PRVW LQ D  0DUFKZLQVNLHWDOY+RZDUG 1R 1R 0DUFKZLQVNLHWDOY+RZDUG 

DOORIWKHVHUHDVRQVZHFRQFOXGHWKDWWKHGLVWULFWFRXUWHUUHG OLPLWDWLRQ RI WKH VWXGHQWjV SULYLOHJHV WR SDUWLFLSDWH LQ LQKROGLQJWKDW+RZDUGFRXOGQRWHVWDEOLVKWKDWWKHVWDWHKDV H[WUDFXUULFXODUDFWLYLWLHV,GDW/DVWO\WKHGLVWULFWjV DVSHFLDOQHHGVXIILFLHQWWRMXVWLI\WKHGUXJWHVWLQJSURJUDP mSUHVVLQJ FRQFHUQl ZLWK GUXJ DEXVH DPRQJ LWV VWXGHQWV VXSSRUWHGZLWKHYLGHQFHZDVVXIILFLHQWWRMXVWLI\WKHLQWUXVLRQ ,QGHWHUPLQLQJZKHWKHUWKHSODLQWLIIVKDYHGHPRQVWUDWHGD LQWRVWXGHQWSULYDF\,GDW,QUHDFKLQJWKLVUHVXOWWKH VWURQJ OLNHOLKRRG RI VXFFHVV RQ WKH PHULWV ZH PXVW DOVR &RXUWUHMHFWHGWKHUHVSRQGHQWVjDUJXPHQWWKDWDVSHFLDOQHHG FRQVLGHUZKHWKHUWKHHYLGHQFHVXSSRUWVWKHLUFRQWHQWLRQWKDW PXVWEDVHGRQDmVXUSDVVLQJVDIHW\LQWHUHVW>@lDQGVWDWHGWKDW WKHPHDQVFKRVHQE\0LFKLJDQDUHQRWmHIIHFWLYHlWRYLQGLFDWH VDIHW\PHUHO\mIDFWRUVLQWRWKHVSHFLDOQHHGVDQDO\VLVlDQGWKDW WKHLQWHUHVW0LFKLJDQKDVDVVHUWHG(DUOV6&WDW  mGUXJXVHFDUULHVDYDULHW\RIKHDOWKULVNVIRUFKLOGUHQl,G +HUH DJDLQ ZH WKLQN WKDW WKH SODLQWLIIV KDYH IDOOHQ VKRUW 8QGHU 0LFKLJDQjV SURJUDP HYHU\ DSSOLFDQW LV WHVWHG DQG 7KHSODLQWLIIVnZKRGLGQRWKDYHWKHEHQHILWRIWKH&RXUWjV WZHQW\ SHUFHQW RI UHFLSLHQWV DUH UDQGRPO\ WHVWHG HYHU\ VL[ (DUOVGHFLVLRQHLWKHULQWKHGLVWULFWFRXUWSURFHHGLQJVRULQ PRQWKV  7KH REMHFWLRQV WKDW FRXQVHOHG DJDLQVW ILQGLQJ SUHSDULQJWKHLUEULHInUHO\RQODQJXDJHDWWKHHQGRI&KDQGOHU FRQVWLWXWLRQDOWKHWHVWLQJSURJUDPLQ&KDQGOHUnWKDWWKHWHVWV Y0LOOHU86   WRVXSSRUWWKHLUDVVHUWLRQ FDOOHGIRUE\WKHVWDWXWHZHUHSUHGLFWDEOHDQGLQIUHTXHQWDQG WKDWRQO\DYHU\VWURQJSXEOLFVDIHW\UDWLRQDOHFDQTXDOLI\DV WKHUHIRUHLQHIIHFWLYHn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m>:@KHUH WKH ULVN WR SXEOLF VDIHW\ LV VXEVWDQWLDO DQG UHDO )LQDOO\ZHPXVWH[DPLQHWKHH[WHQWRIWKHLQWUXVLRQLQWR EODQNHWVXVSLFLRQOHVVVHDUFKHVFDOLEUDWHGWRWKHULVNPD\UDQN WKHSODLQWLIIVjSULYDF\ZRUNHGE\WKHGUXJWHVWLQJLQRUGHUWR DVµUHDVRQDEOHj%XWZKHUHDVLQWKLVFDVHSXEOLFVDIHW\ EDODQFH WKH SULYDF\ LQWHUHVWV RI WKH SODLQWLIIV DJDLQVW LV QRW JHQXLQHO\ LQ MHRSDUG\ WKH )RXUWK $PHQGPHQW 0LFKLJDQjVVSHFLDOQHHG:HHYDOXDWHWKHDVVHUWHGSULYDF\ SUHFOXGHVWKHVXVSLFLRQOHVVVHDUFKl,G LQWHUHVW RI WKH SODLQWLIIV E\ ORRNLQJ DW WKH FKDUDFWHU DQG LQYDVLYHQHVV RI WKH SULYDF\ LQWUXVLRQ DQG WKH QDWXUH RI WKH :HGRQRWDJUHHZLWKWKHSODLQWLIIVWKDWWKLVODQJXDJHVWDQGV SULYDF\LQWHUHVW$FWRQ86DW,PSRUWDQWWR IRU WKH EURDG SURSRVLWLRQ WKDW VSHFLDO QHHGV DUH OLPLWHG WR WKHGHWHUPLQDWLRQRIWKHUHDVRQDEOHQHVVRIWKHH[SHFWDWLRQRI XUJHQW SXEOLF VDIHW\ FRQFHUQV  ,Q RXU YLHZ WKH &RXUW LQ SULYDF\LVWKHH[WHQWRIUHJXODWLRQRIWKHZHOIDUHmLQGXVWU\l &KDQGOHU ZDV PHUHO\ FRQWUDVWLQJ WKH VWDWHjV SXEOLF LPDJH 6NLQQHU   86 DW  WKH SHUYDVLYHQHVV RI WKH WHVWLQJ FRQFHUQV WR D VLWXDWLRQ LQ ZKLFK XQOLNH WKDW LQ &KDQGOHU SUDFWLFHLQRWKHUDUHDVRIOLIHLGDWDQGWKHYROXQWDU\RU SXEOLFVDIHW\ZRXOGJHQXLQHO\EHLQLVVXH2XUUHDGLQJRI LQYROXQWDU\QDWXUHRIWKHSURFHGXUH$FWRQ86DW &KDQGOHU LV FOHDUO\ VXSSRUWHG E\ WKH &RXUWjV VWDWHPHQW LQ :\PDQ86DW (DUOV  0DUFKZLQVNLHWDOY+RZDUG 1R 1R 0DUFKZLQVNLHWDOY+RZDUG

5HVSRQGHQWV DOVR DUJXH WKDW WKH WHVWLQJ RI QRQDWKOHWHV :HDUHSHUVXDGHGWKDWWKHGLVWULFWFRXUWHUUHGLQKROGLQJ GRHVQRWLPSOLFDWHDQ\VDIHW\FRQFHUQVDQGWKDWVDIHW\LV WKDW RQO\ D SXEOLF VDIHW\ FRQFHUQ FDQ TXDOLI\ DV D mVSHFLDO D mFUXFLDO IDFWRUl LQ DSSO\LQJ WKH VSHFLDO QHHGV QHHGl WKDW PD\ MXVWLI\ VXVSLFLRQOHVV GUXJ WHVWLQJ  :H IUDPHZRUN7KH\FRQWHQGWKDWWKHUHPXVWEHmVXUSDVVLQJ FRQFOXGH WKHUHIRUH WKDW WKH GLVWULFW FRXUW DSSOLHG DQ VDIHW\ LQWHUHVWVl RU mH[WUDRUGLQDU\ VDIHW\ DQG QDWLRQDO HUURQHRXV OHJDO VWDQGDUG LQ JUDQWLQJ WKH SUHOLPLQDU\ VHFXULW\ KD]DUGVl LQ RUGHU WR RYHUULGH WKH XVXDO LQMXQFWLRQ  7KH SURSHU VWDQGDUG LV ZKHWKHU 0LFKLJDQ KDV SURWHFWLRQVRIWKH)RXUWK$PHQGPHQW5HVSRQGHQWVDUH VKRZQ D VSHFLDO QHHG RI ZKLFK SXEOLF VDIHW\ LV EXW RQH FRUUHFWWKDWVDIHW\IDFWRUVLQWRWKHVSHFLDOQHHGVDQDO\VLV FRQVLGHUDWLRQ$VZHZLOOH[SODLQWKHHYLGHQFHLQWKHFDVHDW EXW WKH VDIHW\ LQWHUHVW IXUWKHUHG E\ GUXJ WHVWLQJ LV KDQGHVWDEOLVKHVWKDW0LFKLJDQjVVSHFLDOQHHGGRHVHQFRPSDVV XQGRXEWHGO\ VXEVWDQWLDO IRU DOO FKLOGUHQ DWKOHWHV DQG SXEOLFVDIHW\FRQFHUQVDVZHOODVRWKHUQHHGVmEH\RQGWKH QRQDWKOHWHVDOLNH:HNQRZDOOWRRZHOOWKDWGUXJXVH QRUPDOQHHGIRUODZHQIRUFHPHQWl(DUOV6&WDW FDUULHVDYDULHW\RIKHDOWKULVNVIRU FKLOGUHQLQFOXGLQJ LQWHUQDOTXRWHVRPLWWHG  GHDWKIURPRYHUGRVH 3ULPDU\FRQFHUQVRI35:25$DQG7$1)DUHWKDWFKLOGUHQ (DUOV  6&W DW  LQWHUQDO FLWDWLRQV DQG TXRWDWLRQV RIQHHG\IDPLOLHVPD\EHFDUHGIRULQWKHLURZQRULQWKHLU RPLWWHG  UHODWLYHVjKRPHVDQGWKDWWKHSDUHQWVRIWKHVHFKLOGUHQPD\EH DVVLVWHGLQRYHUFRPLQJGHSHQGHQFHRQJRYHUQPHQWSURJUDPV 2IIXUWKHUVXSSRUWLV9HUQRQLD6FK'LVWsY$FWRQ DQG LQ EHFRPLQJ HFRQRPLFDOO\ VHOIVXIILFLHQW  +RZDUG 86   LQZKLFKWKH&RXUWXSKHOGGUXJWHVWLQJ SUHVHQWHGWRWKHGLVWULFWFRXUWQXPHURXVVWXGLHVVXSSRUWLQJWKH RIKLJKVFKRRODWKOHWHVQRWSULPDULO\EHFDXVHRIVDIHW\LVVXHV ),$jVFRQWHQWLRQVWKDWFRQWUROOHGVXEVWDQFHDEXVHQHJDWLYHO\ EXW LQVWHDG RQ WKH EDVLV RI GHWHUULQJ GUXJ XVH DPRQJ WKH DIIHFWV WKH DELOLW\ RI DQ LQGLYLGXDO WR REWDLQ DQG UHWDLQ FKLOGUHQ HQWUXVWHG WR WKH VFKRROjV FDUH  7KH &RXUW LQ9RQ HPSOR\PHQWDQGWREHDUHVSRQVLEOHDQGHIIHFWLYHSDUHQW WKDW 5DDEFKDUDFWHUL]HGWKHJRYHUQPHQWDOLQWHUHVWZKLFKLWIRXQG WKHLQFLGHQFHRIFRQWUROOHGVXEVWDQFHDEXVHLVKLJKHUDPRQJ VXIILFLHQWWRMXVWLI\VXVSLFLRQOHVVVHDUFKHVDVmHQVXULQJWKDW UHFLSLHQWV RI ZHOIDUH EHQHILWV WKDQ LQ WKH SRSXODWLRQ DV D IURQWOLQHLQWHUGLFWLRQSHUVRQQHODUHSK\VLFDOO\ILWDQGKDYH ZKROH  WKDW VXEVWDQFH DEXVH E\ SDUHQWV FRQWULEXWHV XQLPSHDFKDEOHLQWHJULW\DQGMXGJPHQWl9RQ5DDE 86 VXEVWDQWLDOO\WRFKLOGDEXVHDQGQHJOHFW DQGWKDWFRQWUROOHG DW   7KH JRYHUQPHQWjV LQWHUHVW LQ 9RQ 5DDE ZKLOH VXEVWDQFH DEXVH LV D VLJQLILFDQW EDUULHU WR HFRQRPLF VHOI FHUWDLQO\UHODWHGWRVDIHW\ZDVQRWMXVWLILHGRQWKDWEDVLVEXW VXIILFLHQF\:HKDYHQRGRXEWWKDWWKHVDIHW\RIWKHFKLOGUHQ ZDVUDWKHUMXVWLILHGEHFDXVHWKHJRYHUQPHQWKDGWKHDXWKRULW\ RIIDPLOLHVLQ0LFKLJDQjV)DPLO\,QGHSHQGHQFH3URJUDPLVD WRJXDUGDJDLQVWmEULEHU\DQGEODFNPDLOl,GDW6HHDOVR VXEVWDQWLDOSXEOLFVDIHW\FRQFHUQWKDWPXVWEHIDFWRUHGLQWR 2j&RQQHU Y 2UWHJD  86      UXOLQJ WKDW D WKHGHWHUPLQDWLRQRIZKHWKHU0LFKLJDQKDVVKRZQDVSHFLDO VHDUFKRIDGRFWRUjVRIILFH DWDVWDWHKRVSLWDO ZDVUHDVRQDEOH QHHGWRWKLVGUXJWHVWLQJSURJUDP$QDGGLWLRQDOSXEOLFVDIHW\ FLWLQJWKHHIILFLHQF\LQWHUHVWVRIWKHJRYHUQPHQWDOHPSOR\HU FRQFHUQLV WKHULVNWRWKHSXEOLFIURPWKHFULPHDVVRFLDWHG DVVXIILFLHQWWRGLVSHQVHZLWKWKHZDUUDQWDQGSUREDEOHFDXVH ZLWK LOOLFLW GUXJ XVH DQG WUDIILFNLQJ  $QG ZH WKLQN LW LV UHTXLUHPHQWV  1HZ sHUVH\ Y 7/2   86    EH\RQGFDYLOWKDWWKHVWDWHKDVDVSHFLDOQHHGWRLQVXUHWKDW FUHDWLQJWKHVSHFLDOQHHGVH[FHSWLRQWRWKHSUREDEOHFDXVH SXEOLFPRQH\VH[SHQGHGLQWKH),3DUHXVHGE\WKHUHFLSLHQWV DQG ZDUUDQW UHTXLUHPHQWV DQG XSKROGLQJ DV UHDVRQDEOH D IRUWKHLULQWHQGHGSXUSRVHVDQGQRWIRUSURFXULQJFRQWUROOHG VHDUFK RI D VWXGHQWjV SXUVH   $V WKHVH FDVHV GHPRQVWUDWH VXEVWDQFHVnDFULPLQDODFWLYLW\WKDWQRWRQO\XQGHUPLQHVWKH DOWKRXJK SXEOLF VDIHW\ PXVW EH D FRPSRQHQW RI D VWDWHjV REMHFWLYHV RI WKH SURJUDP EXW GLUHFWO\ HQGDQJHUV ERWK WKH VSHFLDOQHHGLWQHHGQRWSUHGRPLQDWH SXEOLFDQGWKHFKLOGUHQWKHSURJUDPLVGHVLJQHGWRDVVLVW)RU