/
Excellent Schools in Caribbean, 2023 Excellent Schools in Caribbean, 2023

Excellent Schools in Caribbean, 2023 - PDF document

HCEmagazine
HCEmagazine . @HCEmagazine
Follow
72 views
Uploaded On 2023-09-20

Excellent Schools in Caribbean, 2023 - PPT Presentation

In the latest issue of The Knowledge Review Excellent Schools in Caribbean 2023 We explore Excellent Schools ID: 1018419

#topeducationmagazine #besteducationmagazine #educationmagazine #onlineeducationmagazine #blogsoneducation #educati

Share:

Link:

Embed:

Download Presentation from below link

Download Pdf The PPT/PDF document "Excellent Schools in Caribbean, 2023" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

6$03/( ÞÞ޽Ρ‘¬¯±Þ­‘ŽŸ‘É‘Ý¢‘Þ½Œ±® fª¦ºŸ¨õ/ÃÃƋŸ õ¡Ÿ¡¢fª¦ºŸ¨õ/ÃÃƋŸ õ¡Ÿ¡¢ ÇÛؼàãÔÖçâÙ¶âßâáÜÔßÜæàâá¸×èÖÔçÜâáÜáçÛضÔåÜÕÕØÔá,QÀXHQFHRQ0RGHUQ(GXFDWLRQ ÇÛØÅâßØâÙÇØÖÛáâßâÚìÜáÇåÔáæÙâåàÜáÚ¶ÔåÜÕÕØÔá¶ßÔææåââàæ7HFK,QWHJUDWLRQLQ7HDFKLQJ HPEDUNVRQDMRXUQH\WRFHOHEUDWHWKHUHPDUNDEOHLQVWLWXWLRQVWKDWKDYHQRWRQO\ZHDWKHUHGWKHFKDOOHQJHVRIRXUWLPHVEXWKDYHDOVRÀRXULVKHGLQWKHIDFHRIDGYHUVLW\:KDWPDNHVWKLVHGLWLRQVSHFLDOLVWKHWDSHVWU\RIVWRULHVZH\nYHZRYHQWRJHWKHU(DFKVFKRROZHIHDWXUHKDVDXQLTXHQDUUDWLYHWRWHOODWHVWDPHQWWRWKHLUGHGLFDWLRQWRSURYLGLQJWRSWLHUHGXFDWLRQ)URPLQQRYDWLYHWHDFKLQJPHWKRGVWRQXUWXULQJDVHQVHRIJOREDOFLWL]HQVKLSWKHVHVFKRROVDUHVHWWLQJEHQFKPDUNVIRUH[FHOOHQFHLQWKHUHJLRQ$V\RXWXUQWKHSDJHVRIWKLVPDJD]LQH\RXZLOOGHOYHLQWRWKHKHDUWDQGVRXORI&DULEEHDQHGXFDWLRQRX\nOOPHHWWKHYLVLRQDU\OHDGHUVZKRVWHHUWKHVHLQVWLWXWLRQVWKHSDVVLRQDWHWHDFKHUVZKRLJQLWH\RXQJPLQGVDQGWKHWDOHQWHGVWXGHQWVZKRDUHWKHSURPLVHRIWRPRUURZ7KHLUVWRULHVDUHLQVSLULQJWKHLUDFKLHYHPHQWVUHPDUNDEOHDQGWKHLULPSDFWLPPHDVXUDEOH:HLQYLWH\RXWRLPPHUVH\RXUVHOYHVLQWKHVWRULHVZH\nYHXQFRYHUHG%HLQVSLUHGE\WKHHGXFDWRUVDQGVWXGHQWVZKRDUHPDNLQJDGL\ruHUHQFH-RLQXVLQFHOHEUDWLQJH[FHOOHQFHLQ&DULEEHDQHGXFDWLRQDQGWRJHWKHUOHW\nVOLJKWWKHZD\WRDEULJKWHUWRPRUURZ 7 5 EŠ”‰‚—Š…  4 (',725·6127( GXFDWLRQOLNHDEHDFRQRIKRSHKDVWKHSRZHUWRWUDQVIRUPOLYHVFRPPXQLWLHVDQGQDWLRQV,QWKHYDVWH[SDQVHRIWKH&DULEEHDQZKHUHWKHVXQNLVVHGVKRUHVPHHWYLEUDQWFXOWXUHVZH¿QGWKHEHDWLQJKHDUWRIDFDGHPLFH[FHOOHQFH,W\nVDVWRU\RIGHWHUPLQDWLRQLQQRYDWLRQDQGWKHXQZDYHULQJFRPPLWPHQWRIHGXFDWRUVZKRLOOXPLQDWHWKHSDWKWRDEULJKWHUIXWXUH,QWKLVHGLWLRQRIRXUPDJD]LQH\n([FHOOHQW6FKRROVLQ&DULEEHDQ\n7KH.QRZOHGJH5HYLHZ ‚“Šƒƒ†‚\” …–„‚•Š‚ †Ž” HPEDUNVRQDMRXUQH\WRFHOHEUDWHWKHUHPDUNDEOHLQVWLWXWLRQVWKDWKDYHQRWRQO\ZHDWKHUHGWKHFKDOOHQJHVRIRXUWLPHVEXWKDYHDOVRÀRXULVKHGLQWKHIDFHRIDGYHUVLW\:KDWPDNHVWKLVHGLWLRQVSHFLDOLVWKHWDSHVWU\RIVWRULHVZH\nYHZRYHQWRJHWKHU(DFKVFKRROZHIHDWXUHKDVDXQLTXHQDUUDWLYHWRWHOODWHVWDPHQWWRWKHLUGHGLFDWLRQWRSURYLGLQJWRSWLHUHGXFDWLRQ)URPLQQRYDWLYHWHDFKLQJPHWKRGVWRQXUWXULQJDVHQVHRIJOREDOFLWL]HQVKLSWKHVHVFKRROVDUHVHWWLQJEHQFKPDUNVIRUH[FHOOHQFHLQWKHUHJLRQ$V\RXWXUQWKHSDJHVRIWKLVPDJD]LQH\RXZLOOGHOYHLQWRWKHKHDUWDQGVRXORI&DULEEHDQHGXFDWLRQRX\nOOPHHWWKHYLVLRQDU\OHDGHUVZKRVWHHUWKHVHLQVWLWXWLRQVWKHSDVVLRQDWHWHDFKHUVZKRLJQLWH\RXQJPLQGVDQGWKHWDOHQWHGVWXGHQWVZKRDUHWKHSURPLVHRIWRPRUURZ7KHLUVWRULHVDUHLQVSLULQJWKHLUDFKLHYHPHQWVUHPDUNDEOHDQGWKHLULPSDFWLPPHDVXUDEOH:HLQYLWH\RXWRLPPHUVH\RXUVHOYHVLQWKHVWRULHVZH\nYHXQFRYHUHG%HLQVSLUHGE\WKHHGXFDWRUVDQGVWXGHQWVZKRDUHPDNLQJDGL\ruHUHQFH-RLQXVLQFHOHEUDWLQJH[FHOOHQFHLQ&DULEEHDQHGXFDWLRQDQGWRJHWKHUOHW\nVOLJKWWKHZD\WRDEULJKWHUWRPRUURZ 7 5 EŠ”‰‚—Š…  4(',725·6127( GXFDWLRQOLNHDEHDFRQRIKRSHKDVWKHSRZHUWRWUDQVIRUPOLYHVFRPPXQLWLHVDQGQDWLRQV,QWKHYDVWH[SDQVHRIWKH&DULEEHDQZKHUHWKHVXQNLVVHGVKRUHVPHHWYLEUDQWFXOWXUHVZH¿QGWKHEHDWLQJKHDUWRIDFDGHPLFH[FHOOHQFH,W\nVDVWRU\RIGHWHUPLQDWLRQLQQRYDWLRQDQGWKHXQZDYHULQJFRPPLWPHQWRIHGXFDWRUVZKRLOOXPLQDWHWKHSDWKWRDEULJKWHUIXWXUH,QWKLVHGLWLRQRIRXUPDJD]LQH\n([FHOOHQW6FKRROVLQ&DULEEHDQ\n7KH.QRZOHGJH5HYLHZ ‚“Šƒƒ†‚\” …–„‚•Š‚ †Ž” '328)287 ]o]Pvš,v]lD}vš}Œ]uÇu‰Z]Ì]vP^šµvšrvšŒ�v]vPDŒ]Ÿu^Z}}o}(šZtš/v]vZv]vPšZWŒ}(]}vo}u‰švÇÁ]šZDŒ]ŸudŒ]v]vPKvs]ÁuÇ/vŸoo]vPsoµo^l]oošZš'}Ç}všZoŒ}}udZ/ovuÇWŒ]}Œ]ŸÌ]vP,}o]ŸZ]oÀo}‰uvšdŒ]v]Dµo]u�Pµ~d�DWŒ]uŒÇ^Z}}o^vvv}/vŸoo]vPšZµošµŒ}(}Z]À}oo}ŒŸ}vv^ZŒZ‰}v]]o]šÇdZ/všPŒŸ}v]vdZ]vPdZZ}o}(dZv}o}PÇ]vdŒv(}Œu]vPŒ]voŒ}}u/vGµv}vD}ŒvµŸ}vdZ/u‰š}(}o}v]o]u}vµŸ}v]všZŒ]v3URûHV$UWLFOHV '328)287 ]o]Pvš,v]lD}vš}Œ]uÇu‰Z]Ì]vP^šµvšrvšŒ�v]vPDŒ]Ÿu^Z}}o}(šZtš/v]vZv]vPšZWŒ}(]}vo}u‰švÇÁ]šZDŒ]ŸudŒ]v]vPKvs]ÁuÇ/vŸoo]vPsoµo^l]oošZš'}Ç}všZoŒ}}udZ/ovuÇWŒ]}Œ]ŸÌ]vP,}o]ŸZ]oÀo}‰uvšdŒ]v]Dµo]u�Pµ~d�DWŒ]uŒÇ^Z}}o^vvv}/vŸoo]vPšZµošµŒ}(}Z]À}oo}ŒŸ}vv^ZŒZ‰}v]]o]šÇdZ/všPŒŸ}v]vdZ]vPdZZ}o}(dZv}o}PÇ]vdŒv(}Œu]vPŒ]voŒ}}u/vGµv}vD}ŒvµŸ}vdZ/u‰š}(}o}v]o]u}vµŸ}v]všZŒ]v3URûHV$UWLFOHV 85/)HDWXULQJ%ULHI 'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\VDQIHUQDQGRWPOHGXWW'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\SURYLGHVDSODWIRUPIRUQXUWXULQJDQGHPSRZHULQJLQDQHQYLURQPHQWWKDWFRQWULEXWHVSRVLWLYHO\WRVWXGHQW\n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†‘•†Žƒ†“'kikl …Š•“EŠE‰Š†‡ ‚“š\”–›‚ †Š““Š•†““•†”Šˆ †‚… Š”–‚Š”†“E…†”Šˆ†“ ‚‰–‰Š…†‚—Š…Šˆ‚–†Š –”Š†””†—†‘Ž†• ™†„–•Š—†””Š”•&Š„†“†”Š…†•“‚†”‚‚ˆ†“ –ƒš‚“•Š˜‚‘‚Š‚”‚ŠŒ‚“ŽšŠ” ŠˆŠ•‚‚“Œ†•Šˆ‚‚ˆ†“†„‰Š„‚”–•‚•”†„‰Š„‚ †‚…””Š”•‚•†„‰Š„‚ †‚… Š‚†ˆ†‚—Š…'ƒ†“•‚„ƒŽŠ†‚‹†”‰˜‚“Š—‰‚…  E ™†„–•Š—†”‚“Œ†•Šˆ‚‚ˆ†“ŠˆŠ•‚Š“„–‚•Š‚‚ˆ†“†”†‚“„‰‚š”• ‚‚‹Š\n‚“•‚…† “Š„ŽŠ•‰‚—Š…“‚' †Ž”‚“Œ‚Š •“Šƒ–•Šˆ“Š•†“” Šš‚‰‚••†“‹††Š”‰‚—Š…' ‘‚\rˆ† ²P2hµoy .ÁÃÃ4ÁÃÄ) 2Š®²1PŠ2µ)„ÏÛ§µy .ÅÁÂ)jPïÞ2!Ø iò)§Þÿ/öµ²ŠP®ŠÐŠ2)§Pµ)wŠØŠ2Š:ØH2ŠÄÁÁÀÂǔ‚†”^•‰†Œ˜†…ˆ†“†—Š†˜&„Ž  \n\n\r  †‚“†‚”‚—‚Š‚ƒ† 85/)HDWXULQJ%ULHI 'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\VDQIHUQDQGRWPOHGXWW'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\SURYLGHVDSODWIRUPIRUQXUWXULQJDQGHPSRZHULQJLQDQHQYLURQPHQWWKDWFRQWULEXWHVSRVLWLYHO\WRVWXGHQW\n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†‘•†Žƒ†“'kikl …Š•“EŠE‰Š†‡ ‚“š\”–›‚ †Š““Š•†““•†”Šˆ †‚… Š”–‚Š”†“E…†”Šˆ†“ ‚‰–‰Š…†‚—Š…Šˆ‚–†Š –”Š†””†—†‘Ž†• ™†„–•Š—†””Š”•&Š„†“†”Š…†•“‚†”‚‚ˆ†“ –ƒš‚“•Š˜‚‘‚Š‚”‚ŠŒ‚“ŽšŠ” ŠˆŠ•‚‚“Œ†•Šˆ‚‚ˆ†“†„‰Š„‚”–•‚•”†„‰Š„‚ †‚…””Š”•‚•†„‰Š„‚ †‚… Š‚†ˆ†‚—Š…'ƒ†“•‚„ƒŽŠ†‚‹†”‰˜‚“Š—‰‚…  E ™†„–•Š—†”‚“Œ†•Šˆ‚‚ˆ†“ŠˆŠ•‚Š“„–‚•Š‚‚ˆ†“†”†‚“„‰‚š”• ‚‚‹Š\n‚“•‚…† “Š„ŽŠ•‰‚—Š…“‚' †Ž”‚“Œ‚Š •“Šƒ–•Šˆ“Š•†“” Šš‚‰‚••†“‹††Š”‰‚—Š…' ‘‚\rˆ† ²P2hµoy .ÁÃÃ4ÁÃÄ) 2Š®²1PŠ2µ)„ÏÛ§µy .ÅÁÂ)jPïÞ2!Ø iò)§Þÿ/öµ²ŠP®ŠÐŠ2)§Pµ)wŠØŠ2Š:ØH2ŠÄÁÁÀÂǔ‚†”^•‰†Œ˜†…ˆ†“†—Š†˜&„Ž  \n\n\r  †‚“†‚”‚—‚Š‚ƒ† KLOGUHQKDYHDQLQVDWLDEOHFXULRVLW\DQGIUHTXHQWO\LQYHVWLJDWHWKHLULPPHGLDWHHQYLURQPHQW6XFKFKLOGUHQZLOOMR\IXOO\LQWHUDFWZLWKWKHLUVXUURXQGLQJVDQGLQVWLQFWLYHO\SLFNXSQHZDELOLWLHV+DYLQJDVDIHVSDFHIRUWKHPWRXQGHUWDNHWKHLUH[SORUDWLRQPLJKWKHOSSUHYHQWDFKLOGIURPDFFLGHQWVWKDWFRXOGRWKHUZLVHEHDYRLGHGDWKRPHRULQWKHEDFN\DUGEHFDXVHFKLOGUHQDUHQ\nWIXOO\DEOHWRQRWLFHSRWHQWLDOGDQJHUVDURXQGWKHP+HQFHDFKLOGFDUHIDFLOLW\LQWKHQHLJKERXUKRRGFDQEHDJUHDWVROXWLRQIRUSDUHQWVORRNLQJIRUDVHFXUHHQYLURQPHQWZKHUHWKHLUFKLOGUHQFDQDOVRSLFNXSQHZVNLOOVDQGEHUHDG\IRUWKHIRUWKFRPLQJVFKRRO\HDU:KLOHSOD\LQJLQGHSHQGHQWO\ZLWKRWKHUFKLOGUHQRIWKHLURZQDJHZHOOWUDLQHGVWD\ruDQGSHUVRQQHOPDNHVXUHWKDWNLGVJHWWKHFDUHDQGHQYLURQPHQWWKH\UHTXLUH$W'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\SHUFHQWRILWVVWD\ru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µ:HDUHUDLVLQJFKLOGUHQZKRZRXOGUHLJQLQWKHLUJHQHUDWLRQ¶7KHVFKRROSURYLGHVDSODWIRUPIRUQXUWXULQJDQGHPSRZHULQJLQDQHQYLURQPHQWWKDWFRQWULEXWHVSRVLWLYHO\WRWKHLUDFDGHPLFVRFLDODQGHPRWLRQDOGHYHORSPHQW7KLVLQVSLUHV\RXQJFKLOGUHQWREHFRPHOLIHORQJOHDUQHUVWKDWFDQFRQWULEXWHSRVLWLYHO\WRWKHLUFRPPXQLWLHV/HDUQLQJZLWK/RYH(LJKW\SHUFHQWRI'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\VWXGHQWSRSXODWLRQZHUHFKLOGUHQZKRVHSDUHQWVZHUHZRUNLQJLQWRXULVPWKHKRWHOLQGXVWU\RUXQLYHUVLW\DGPLQLVWUDWRUVDQGVWXGHQWV7KHVFKRROKDVJURZQERWKH[SHULHQWLDOO\DQGQXPHULFDOO\HYHQDVLWDSSOLHVWKH\nORYH¿UVW\nDSSURDFKWRFRPPXQLFDWLQJWKHPHVVDJHWKDWQRWKLQJLVLPSRVVLEOHLIRQHEHOLHYHV7KHVFKRROXQGHUVWDQGVWKDWZKHQFKLOGUHQIHHOORYHGDQGUHVSHFWHGWKH\DUHEHWWHUDEOHWRJUDVSFRQFHSWVWKDQLIWKH\DUHIRUFHIXOO\PDGHWRPHPRUL]HWKHP7KHVFKRRO\nV/29(),567DSSURDFKWROHDUQLQJDOORZVLWVVWXGHQWVWRGHYHORSFRQ¿GHQFHLQWKHPVHOYHVDQGWKHLUWHDFKHUVDQGFDXVHVWKHPWREHPRUHUHFHSWLYHWRZKDWHYHULVEHLQJFRPPXQLFDWHG,WHPEUDFHVWKHXQLTXHQHVVRIHYHU\VWXGHQW\nVOHDUQLQJVW\OHLQWHUHVWDQGDELOLWLHVDQGR\ruHUVDSHUVRQDOL]HGOHDUQLQJDSSURDFKWKDWPHHWVWKDWVWXGHQW\nVLQGLYLGXDOQHHGV,WV dZ^Z}}o–�Ks&/Z^d‰‰Œ}Zš}oŒv]vPoo}Á]ššµvšš}Ào}‰}v.v]všZuoÀvšZ]ŒšZŒvµšZuš}u}ŒŒ‰ŸÀš}ÁZšÀŒ]]vP}uuµv]šX   %JMJHFOU)BOET"CJLF.POUFTTPSJ"DBEFNZ lr_-vbŒbm]"|†7;m|I;m|;u;7;-umbm] DŒ]l:}‰Z}r}ÁvŒvWŒ]v]‰oU]o]Pvš,v]lD}vš}Œ]uÇ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU ¸ëÖØßßØáçÆÖÛââßæÜá¶ÔåÜÕÕØÔ៥£¥¦ KLOGUHQKDYHDQLQVDWLDEOHFXULRVLW\DQGIUHTXHQWO\LQYHVWLJDWHWKHLULPPHGLDWHHQYLURQPHQW6XFKFKLOGUHQZLOOMR\IXOO\LQWHUDFWZLWKWKHLUVXUURXQGLQJVDQGLQVWLQFWLYHO\SLFNXSQHZDELOLWLHV+DYLQJDVDIHVSDFHIRUWKHPWRXQGHUWDNHWKHLUH[SORUDWLRQPLJKWKHOSSUHYHQWDFKLOGIURPDFFLGHQWVWKDWFRXOGRWKHUZLVHEHDYRLGHGDWKRPHRULQWKHEDFN\DUGEHFDXVHFKLOGUHQDUHQ\nWIXOO\DEOHWRQRWLFHSRWHQWLDOGDQJHUVDURXQGWKHP+HQFHDFKLOGFDUHIDFLOLW\LQWKHQHLJKERXUKRRGFDQEHDJUHDWVROXWLRQIRUSDUHQWVORRNLQJIRUDVHFXUHHQYLURQPHQWZKHUHWKHLUFKLOGUHQFDQDOVRSLFNXSQHZVNLOOVDQGEHUHDG\IRUWKHIRUWKFRPLQJVFKRRO\HDU:KLOHSOD\LQJLQGHSHQGHQWO\ZLWKRWKHUFKLOGUHQRIWKHLURZQDJHZHOOWUDLQHGVWD\ruDQGSHUVRQQHOPDNHVXUHWKDWNLGVJHWWKHFDUHDQGHQYLURQPHQWWKH\UHTXLUH$W'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\SHUFHQWRILWVVWD\ru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µ:HDUHUDLVLQJFKLOGUHQZKRZRXOGUHLJQLQWKHLUJHQHUDWLRQ¶7KHVFKRROSURYLGHVDSODWIRUPIRUQXUWXULQJDQGHPSRZHULQJLQDQHQYLURQPHQWWKDWFRQWULEXWHVSRVLWLYHO\WRWKHLUDFDGHPLFVRFLDODQGHPRWLRQDOGHYHORSPHQW7KLVLQVSLUHV\RXQJFKLOGUHQWREHFRPHOLIHORQJOHDUQHUVWKDWFDQFRQWULEXWHSRVLWLYHO\WRWKHLUFRPPXQLWLHV/HDUQLQJZLWK/RYH(LJKW\SHUFHQWRI'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\VWXGHQWSRSXODWLRQZHUHFKLOGUHQZKRVHSDUHQWVZHUHZRUNLQJLQWRXULVPWKHKRWHOLQGXVWU\RUXQLYHUVLW\DGPLQLVWUDWRUVDQGVWXGHQWV7KHVFKRROKDVJURZQERWKH[SHULHQWLDOO\DQGQXPHULFDOO\HYHQDVLWDSSOLHVWKH\nORYH¿UVW\nDSSURDFKWRFRPPXQLFDWLQJWKHPHVVDJHWKDWQRWKLQJLVLPSRVVLEOHLIRQHEHOLHYHV7KHVFKRROXQGHUVWDQGVWKDWZKHQFKLOGUHQIHHOORYHGDQGUHVSHFWHGWKH\DUHEHWWHUDEOHWRJUDVSFRQFHSWVWKDQLIWKH\DUHIRUFHIXOO\PDGHWRPHPRUL]HWKHP7KHVFKRRO\nV/29(),567DSSURDFKWROHDUQLQJDOORZVLWVVWXGHQWVWRGHYHORSFRQ¿GHQFHLQWKHPVHOYHVDQGWKHLUWHDFKHUVDQGFDXVHVWKHPWREHPRUHUHFHSWLYHWRZKDWHYHULVEHLQJFRPPXQLFDWHG,WHPEUDFHVWKHXQLTXHQHVVRIHYHU\VWXGHQW\nVOHDUQLQJVW\OHLQWHUHVWDQGDELOLWLHVDQGR\ruHUVDSHUVRQDOL]HGOHDUQLQJDSSURDFKWKDWPHHWVWKDWVWXGHQW\nVLQGLYLGXDOQHHGV,WV dZ^Z}}o–�Ks&/Z^d‰‰Œ}Zš}oŒv]vPoo}Á]ššµvšš}Ào}‰}v.v]všZuoÀvšZ]ŒšZŒvµšZuš}u}ŒŒ‰ŸÀš}ÁZšÀŒ]]vP}uuµv]šX   %JMJHFOU)BOET"CJLF.POUFTTPSJ"DBEFNZ lr_-vbŒbm]"|†7;m|I;m|;u;7;-umbm] DŒ]l:}‰Z}r}ÁvŒvWŒ]v]‰oU]o]Pvš,v]lD}vš}Œ]uÇ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU ¸ëÖØßßØáçÆÖÛââßæÜá¶ÔåÜÕÕØÔ៥£¥¦ FXUULFXOXPLVGHVLJQHGWREHERWKFKDOOHQJLQJDQGHQJDJLQJZLWKDIRFXVRQKDQGVRQOHDUQLQJDQGFULWLFDOWKLQNLQJ6XFFHHGLQJLQD*OREDOL]HG6RFLHW\7KHFURVVFXUULFXOXPWHDFKLQJPHWKRGRILQVWUXFWLRQLVEDVHGRQWKH0DULD0RQWHVVRUL0HWKRGRILPSDUWLQJPXOWLSOHDFDGHPLFGLVFLSOLQHVGXULQJHDFKOHVVRQ,WVPDWHULDOVDUHVHOIFRUUHFWLQJDQGDOORZWKHFKLOGWRGHYHORSVHOIFRQ¿GHQFHSRVLWLYHVHOIHVWHHPDQGPDVWHU\DVWKH\UHSHDWHGO\ZRUNZLWKWKHPDWHULDOV)XUWKHUDVWKHFKLOGUHSHDWHGO\ZRUNVZLWKWKHLUKDQGVWKH\DUHXQFRQVFLRXVO\GHYHORSLQJDUHODWLRQVKLSEHWZHHQWKHKDQGDQGWKHEUDLQDVZHOODVH\HKDQGFRRUGLQDWLRQ7KHXQGHUVWDQGLQJJDLQHGLVPRUHFRQFUHWHDQGKHOSVLQWKHGHYHORSPHQWRIWKHZKROHFKLOG&RPSO\LQJZLWK'L\ruHUHQW/HDUQLQJ6W\OHV'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\IROORZVWKH0RQWHVVRUL0HWKRGZKLFKHPSKDVL]HVVWXGHQWFHQWHUHGOHDUQLQJDQGLQGLYLGXDOLQVWUXFWLRQ7KHVFKRROEHOLHYHVWKDWHDFKVWXGHQWKDVWKHLURZQOHDUQLQJVW\OHDQGSDFHDQGWKHFXUULFXOXPLVGHVLJQHGWRPHHWWKHQHHGVRIHDFKVWXGHQW7KHVFKRRO\nVDSSURDFKWRHGXFDWLRQLVKDQGVRQDQGH[SHULHQWLDOZLWKDIRFXVRQGHYHORSLQJFULWLFDOWKLQNLQJDQGSUREOHPVROYLQJVNLOOV,WHQFRXUDJHVLWVVWXGHQWVWRWDNHDQDFWLYHUROHLQWKHLUOHDUQLQJDQGWRH[SORUHWKHLULQWHUHVWVDQGSDVVLRQV7KHTXDOLW\RIHGXFDWLRQSURYLGHGE\WKHVFKRROLVHQVXUHGWKURXJKUHJXODUHYDOXDWLRQRILWVFXUULFXOXPDQGWHDFKLQJPHWKRGV7KHVFKRROXVHVDUDQJHRIDVVHVVPHQWWRROVLQFOXGLQJWHDFKHUREVHUYDWLRQSURMHFWVWKDWUHTXLUHSDUHQWDOLQYROYHPHQWSXEOLFVSHDNLQJH[HUFLVHVDQGTXDUWHUO\ZULWWHQDVVHVVPHQWVWRWUDFNLWVVWXGHQWV\nSURJUHVVDQGLGHQWLI\DUHDVZKHUHWKH\PD\QHHGDGGLWLRQDOVXSSRUW0DNLQJ&UHDWLYH$GMXVWPHQWV7KHELJJHVWFKDOOHQJHIRUWKHVFKRROKDVEHHQWKHH\ru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¿WVRID0RQWHVVRULHGXFDWLRQ$OO,QFOXVLYH&XUULFXOXP'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\KDVDVWURQJFRPPLWPHQWWRGLYHUVLW\HTXLW\DQGLQFOXVLRQ,WKDVDGLYHUVHVWXGHQWERG\DQGVWULYHVWRFUHDWHDZHOFRPLQJDQGVXSSRUWLYHHQYLURQPHQWIRUDOOLWVVWXGHQWVUHJDUGOHVVRIWKHLUUDFHHWKQLFLW\SK\VLFDOQDWXUDOJURZWKDQGGHYHORSPHQWJHQGHUUHOLJLRXVSUHIHUHQFHVSROLWLFDOSHUVXDVLRQVRUVRFLRHFRQRPLFEDFNJURXQGV7KHVFKRROUHVSHFWVDQGFHOHEUDWHVVXFKGLYHUVLW\DVUHÀHFWHGLQLWVDOOLQFOXVLYHFXUULFXOXP7KHVFKRRODOVRKDVSROLFLHVDQGSURFHGXUHVLQSODFHWRDGGUHVVDQ\LQVWDQFHRIGLVFULPLQDWLRQRUKDUDVVPHQWDQGSURYLGHVWUDLQLQJWRLWVVWD\ruRQKRZWRFUHDWHDQGPDLQWDLQDQLQFOXVLYHDQGHTXLWDEOHHQYLURQPHQWIRUDOOVWXGHQWV0DLQWDLQLQJD7ZR:D\&RPPXQLFDWLRQ7KHDFDGHP\¶VLQKRXVHFRXQVHOLQJVHUYLFHVPDLQO\SUHSDUHWKHVWXGHQWVWRGHDOZLWKFRQÀLFWUHVROXWLRQDQGLVVXHVRIEXOO\LQJ7KHVFKRROKDVD\n3HDFH3ODFH\n SUHSDUHGDUHDZLWKLQWKHVFKRROHQYLURQPHQWVXSHUYLVHGE\DWHDFKHU ZKHUHDOOGLVDJUHHPHQWVDUHDGGUHVVHGLQDFLYLODQGUHVSHFWIXOPDQQHU,WDOVRKDVDFORVHZRUNLQJUHODWLRQVKLSZLWKR\rvFLDOVRIWKHORFDO6SHFWUXP&HQWUHZKRFRQGXFWUHJXODUYLVLWVWRREVHUYHDQGUHSRUWRQFKLOGUHQZKRDUHODWHOHDUQHUVDQGWKRVHZLWKVSHHFKGHOD\V,QQRYDWLYH7HDFKLQJ0HWKRGRORJLHV67(0EDVHGOHDUQLQJLVWKHSXOVHRIWKH0RQWHVVRUL0HWKRGRILQVWUXFWLRQ,WKDVEHHQLQWHJUDWHGLQWRWKHOHDUQLQJSURFHVVWKURXJKFURVVFXUULFXOXPOHVVRQVWKDWLQYROYHHJWKHXVHRIFHQWXU\WHFKQRORJ\DQGKRZLWFDQEHOLQNHGZLWKWKHPDWKHPDWLFDOFDOFXODWLRQVRIHDUO\FLYLOL]DWLRQLQSUHGLFWLQJZHDWKHUSDWWHUQVDQGXWLOL]LQJPHFKDQLFDODQGRWKHUUHVRXUFHVWRSODQIRUFKDQJHVLQWKHFOLPDWH7KLVLVRQHRIVHYHUDOZD\VRI67(0EDVHGLQWHJUDWLRQLQWKH0RQWHVVRULOHDUQLQJHQYLURQPHQW/HJRVDUHDOVRXVHGDVHQJLQHHULQJWRROVLQWKHEXLOGLQJRIWR\URERWVYHKLFOHVVSDFHVKLSVEXLOGLQJVDQGSDUNV0RVWRIWKHH[WUDFXUULFXODUDFWLYLWLHVRIWKHVFKRRODUHSUHDUUDQJHGDQGDUHDSDUWRILWV\HDUO\FDOHQGDURIHYHQWV7KHVHLQFOXGHDUWSRHWU\¿HOGWULSVSXEOLFVSHDNLQJGUDPDFXOWXUHGD\DFWLYLWLHVFDPSVDQGFDUHHUGD\3DUHQWVDUHLQFOXGHGLQDOOWKHVHDFWLYLWLHVDVWKHLUVXSSRUWLQSUHSDULQJWKHLUFKLOGLVLPSRUWDQWIRUVXFFHVV'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\KDVDQDZHVRPHUHVSRQVLELOLW\WREHUROHPRGHOVIRUWKHQH[WJHQHUDWLRQ7KHVFKRROIHHOVKRQRUHGWREHDSDUWRIWKHHDUO\HGXFDWLRQDOGHYHORSPHQW,WV\nORYH¿UVW\nDSSURDFKLVWKHNH\WRVXFFHVVDQGLVGHPRQVWUDWHGLQDOODUHDVRIVHUYLFHWRLWVVWXGHQWVDQGFOLHQWV ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU FXUULFXOXPLVGHVLJQHGWREHERWKFKDOOHQJLQJDQGHQJDJLQJZLWKDIRFXVRQKDQGVRQOHDUQLQJDQGFULWLFDOWKLQNLQJ6XFFHHGLQJLQD*OREDOL]HG6RFLHW\7KHFURVVFXUULFXOXPWHDFKLQJPHWKRGRILQVWUXFWLRQLVEDVHGRQWKH0DULD0RQWHVVRUL0HWKRGRILPSDUWLQJPXOWLSOHDFDGHPLFGLVFLSOLQHVGXULQJHDFKOHVVRQ,WVPDWHULDOVDUHVHOIFRUUHFWLQJDQGDOORZWKHFKLOGWRGHYHORSVHOIFRQ¿GHQFHSRVLWLYHVHOIHVWHHPDQGPDVWHU\DVWKH\UHSHDWHGO\ZRUNZLWKWKHPDWHULDOV)XUWKHUDVWKHFKLOGUHSHDWHGO\ZRUNVZLWKWKHLUKDQGVWKH\DUHXQFRQVFLRXVO\GHYHORSLQJDUHODWLRQVKLSEHWZHHQWKHKDQGDQGWKHEUDLQDVZHOODVH\HKDQGFRRUGLQDWLRQ7KHXQGHUVWDQGLQJJDLQHGLVPRUHFRQFUHWHDQGKHOSVLQWKHGHYHORSPHQWRIWKHZKROHFKLOG&RPSO\LQJZLWK'L\ruHUHQW/HDUQLQJ6W\OHV'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\IROORZVWKH0RQWHVVRUL0HWKRGZKLFKHPSKDVL]HVVWXGHQWFHQWHUHGOHDUQLQJDQGLQGLYLGXDOLQVWUXFWLRQ7KHVFKRROEHOLHYHVWKDWHDFKVWXGHQWKDVWKHLURZQOHDUQLQJVW\OHDQGSDFHDQGWKHFXUULFXOXPLVGHVLJQHGWRPHHWWKHQHHGVRIHDFKVWXGHQW7KHVFKRRO\nVDSSURDFKWRHGXFDWLRQLVKDQGVRQDQGH[SHULHQWLDOZLWKDIRFXVRQGHYHORSLQJFULWLFDOWKLQNLQJDQGSUREOHPVROYLQJVNLOOV,WHQFRXUDJHVLWVVWXGHQWVWRWDNHDQDFWLYHUROHLQWKHLUOHDUQLQJDQGWRH[SORUHWKHLULQWHUHVWVDQGSDVVLRQV7KHTXDOLW\RIHGXFDWLRQSURYLGHGE\WKHVFKRROLVHQVXUHGWKURXJKUHJXODUHYDOXDWLRQRILWVFXUULFXOXPDQGWHDFKLQJPHWKRGV7KHVFKRROXVHVDUDQJHRIDVVHVVPHQWWRROVLQFOXGLQJWHDFKHUREVHUYDWLRQSURMHFWVWKDWUHTXLUHSDUHQWDOLQYROYHPHQWSXEOLFVSHDNLQJH[HUFLVHVDQGTXDUWHUO\ZULWWHQDVVHVVPHQWVWRWUDFNLWVVWXGHQWV\nSURJUHVVDQGLGHQWLI\DUHDVZKHUHWKH\PD\QHHGDGGLWLRQDOVXSSRUW0DNLQJ&UHDWLYH$GMXVWPHQWV7KHELJJHVWFKDOOHQJHIRUWKHVFKRROKDVEHHQWKHH\ruHFWVRIWKH&29,'SDQGHPLF'XHWRLWVKDQGVRQPHWKRGRILQVWUXFWLRQWKHVFKRROZDVIRUFHGWRPDNHFUHDWLYHDGMXVWPHQWVIRURQOLQHFODVVHV'XULQJWKDWSHULRGPDQ\RILWVLQWHUQDWLRQDOVWXGHQWVZHUHIRUFHGWRWUDYHOKRPHDQGVRPHQHYHUUHWXUQHG$QRWKHUFKDOOHQJHWKHVFKRROIDFHGZDVFRQYLQFLQJSDUHQWVWRPDNHDVKLIWIURPWKHGHHSO\URRWHGWUDGLWLRQDOV\VWHPRIOHDUQLQJWRWKH0RQWHVVRULPHWKRGRILQVWUXFWLRQ7KH0RQWHVVRULPHWKRGWKRXJKQRWQHZLVQRWIXOO\XQGHUVWRRGDQGHPEUDFHG+RZHYHUWKURXJKDGYHUWLVLQJPDUNHWLQJ DQGWKHXVHRIVRFLDOPHGLDWKHVFKRROKDVEHHQDEOHWREULQJDFOHDUHUXQGHUVWDQGLQJRIWKHEHQH¿WVRID0RQWHVVRULHGXFDWLRQ$OO,QFOXVLYH&XUULFXOXP'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\KDVDVWURQJFRPPLWPHQWWRGLYHUVLW\HTXLW\DQGLQFOXVLRQ,WKDVDGLYHUVHVWXGHQWERG\DQGVWULYHVWRFUHDWHDZHOFRPLQJDQGVXSSRUWLYHHQYLURQPHQWIRUDOOLWVVWXGHQWVUHJDUGOHVVRIWKHLUUDFHHWKQLFLW\SK\VLFDOQDWXUDOJURZWKDQGGHYHORSPHQWJHQGHUUHOLJLRXVSUHIHUHQFHVSROLWLFDOSHUVXDVLRQVRUVRFLRHFRQRPLFEDFNJURXQGV7KHVFKRROUHVSHFWVDQGFHOHEUDWHVVXFKGLYHUVLW\DVUHÀHFWHGLQLWVDOOLQFOXVLYHFXUULFXOXP7KHVFKRRODOVRKDVSROLFLHVDQGSURFHGXUHVLQSODFHWRDGGUHVVDQ\LQVWDQFHRIGLVFULPLQDWLRQRUKDUDVVPHQWDQGSURYLGHVWUDLQLQJWRLWVVWD\ruRQKRZWRFUHDWHDQGPDLQWDLQDQLQFOXVLYHDQGHTXLWDEOHHQYLURQPHQWIRUDOOVWXGHQWV0DLQWDLQLQJD7ZR:D\&RPPXQLFDWLRQ7KHDFDGHP\¶VLQKRXVHFRXQVHOLQJVHUYLFHVPDLQO\SUHSDUHWKHVWXGHQWVWRGHDOZLWKFRQÀLFWUHVROXWLRQDQGLVVXHVRIEXOO\LQJ7KHVFKRROKDVD\n3HDFH3ODFH\n SUHSDUHGDUHDZLWKLQWKHVFKRROHQYLURQPHQWVXSHUYLVHGE\DWHDFKHU ZKHUHDOOGLVDJUHHPHQWVDUHDGGUHVVHGLQDFLYLODQGUHVSHFWIXOPDQQHU,WDOVRKDVDFORVHZRUNLQJUHODWLRQVKLSZLWKR\rvFLDOVRIWKHORFDO6SHFWUXP&HQWUHZKRFRQGXFWUHJXODUYLVLWVWRREVHUYHDQGUHSRUWRQFKLOGUHQZKRDUHODWHOHDUQHUVDQGWKRVHZLWKVSHHFKGHOD\V,QQRYDWLYH7HDFKLQJ0HWKRGRORJLHV67(0EDVHGOHDUQLQJLVWKHSXOVHRIWKH0RQWHVVRUL0HWKRGRILQVWUXFWLRQ,WKDVEHHQLQWHJUDWHGLQWRWKHOHDUQLQJSURFHVVWKURXJKFURVVFXUULFXOXPOHVVRQVWKDWLQYROYHHJWKHXVHRIFHQWXU\WHFKQRORJ\DQGKRZLWFDQEHOLQNHGZLWKWKHPDWKHPDWLFDOFDOFXODWLRQVRIHDUO\FLYLOL]DWLRQLQSUHGLFWLQJZHDWKHUSDWWHUQVDQGXWLOL]LQJPHFKDQLFDODQGRWKHUUHVRXUFHVWRSODQIRUFKDQJHVLQWKHFOLPDWH7KLVLVRQHRIVHYHUDOZD\VRI67(0EDVHGLQWHJUDWLRQLQWKH0RQWHVVRULOHDUQLQJHQYLURQPHQW/HJRVDUHDOVRXVHGDVHQJLQHHULQJWRROVLQWKHEXLOGLQJRIWR\URERWVYHKLFOHVVSDFHVKLSVEXLOGLQJVDQGSDUNV0RVWRIWKHH[WUDFXUULFXODUDFWLYLWLHVRIWKHVFKRRODUHSUHDUUDQJHGDQGDUHDSDUWRILWV\HDUO\FDOHQGDURIHYHQWV7KHVHLQFOXGHDUWSRHWU\¿HOGWULSVSXEOLFVSHDNLQJGUDPDFXOWXUHGD\DFWLYLWLHVFDPSVDQGFDUHHUGD\3DUHQWVDUHLQFOXGHGLQDOOWKHVHDFWLYLWLHVDVWKHLUVXSSRUWLQSUHSDULQJWKHLUFKLOGLVLPSRUWDQWIRUVXFFHVV'LOLJHQW+DQGV$ELNH0RQWHVVRUL$FDGHP\KDVDQDZHVRPHUHVSRQVLELOLW\WREHUROHPRGHOVIRUWKHQH[WJHQHUDWLRQ7KHVFKRROIHHOVKRQRUHGWREHDSDUWRIWKHHDUO\HGXFDWLRQDOGHYHORSPHQW,WV\nORYH¿UVW\nDSSURDFKLVWKHNH\WRVXFFHVVDQGLVGHPRQVWUDWHGLQDOODUHDVRIVHUYLFHWRLWVVWXGHQWVDQGFOLHQWV ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU $¥ì” ¥Ø w7Å.Æ+ðÅÐ4 4VDDDFTT ¢”‹±Ò¢ÀݳŠ”Îíº¥ºìÀÎÀ "”ØÝΔí¥Ø¢ÝÒÎ¥ž¢Øíóh*ºÒ¥ž¢ØÒU݋‹”ÒÒ¥Z”‹¢66%%%ÎÀN³‹”=ÀÎØ¢dUݥؔ!  d݊³¥ºdC($# !'d_º¥Ø”UØؔÒN¢Àº”{u&!$v{& "{!'%$ SSS4ìÐ\nSÐÌæÐ+ÐRðÐSÆ $¥ì”¥Ø w7Å.Æ+ðÅÐ4 4VDDDFTT ¢”‹±Ò¢ÀݳŠ”Îíº¥ºìÀÎÀ"”ØÝΔí¥Ø¢ÝÒÎ¥ž¢Øíóh*ºÒ¥ž¢ØÒU݋‹”ÒÒ¥Z”‹¢66%%%ÀN³‹”=ÀÎØ¢dUݥؔ!  d݊³¥ºdC($# !'d_º¥Ø”UØؔÒN¢Àº”{u&!$v{& "{!'%$ SSS4ìÐ\nSÐÌæÐ+ÐRðÐSÆ âÙçÛØ ¸áÛÔáÖÜáÚçÛØÃåâÙØææÜâáÔ߶âàãØçØáÖìêÜçÛÀÔåÜçÜàØÇåÔÜáÜáÚ RDGYDQFHDQGH[SDQGWKHJOREDOHFRQRP\HVWDEOLVKLQJDVXVWDLQDEOHPDULWLPHWUDQVSRUWDWLRQLQGXVWU\LVHVVHQWLDO7KHQHHGIRUVKLSSLQJVHUYLFHVZLOOXQGRXEWHGO\LQFUHDVHRYHUWLPH6LQFHWKHGHYHORSPHQWRIJOREDOWUDGHQHDUO\QRFRXQWU\FDQQRZEHFRPSOHWHO\VHOIVX\rvFLHQW(DFKQDWLRQHQJDJHVLQWKH7KHVKLSSLQJVHFWRUKRZHYHULVGHSHQGHQWRQDVX\rvFLHQWVXSSO\RIVHDIDUHUVWRFUHZWKHVKLSVWKDWWUDQVSRUWWKHYLWDOVXSSOLHVRQZKLFKHYHU\RQHUHOLHVLIWKHZRUOGLVWREHVDIHVHFXUHDQGH\rvFLHQW  7KHUROHRIPDULWLPHHGXFDWLRQLVWR  QXUWXUHWKHVHLGHDOSURIHVVLRQDOV7KLVHGXFDWLRQLVPRUHVLJQL¿FDQWLQWKHSURFHVVRIVHOOLQJZKDWLWSURGXFHVDQGJHWWLQJZKDWLWQHHGVRQVRPHOHYHOHYHU\QDWLRQFDQUHO\RQLWVRZQUHVRXUFHV6KLSSLQJKDVKLVWRULFDOO\R\ruHUHGWKHRQO\WUXO\HFRQRPLFDOURXWHWRFDUU\EXONJRRGVRYHUDQ\VLJQL¿FDQWGLVWDQFHDQGWKHJURZWKRIVKLSSLQJDQGWKHFUHDWLRQRIDZRUOGWUDGHRUGHUDUHFORVHO\LQWHUZRYHQ&DULEEHDQUHJLRQVLQFHWKH&DULEEHDQLVVXUURXQGHGE\ZDWHUDQGWUDYHOWRXULVPDQGFDUJRUHO\KHDYLO\RQZHOOWUDLQHGFUHZ0DULWLPH6FKRRORIWKH:HVW,QGLHV 06:, KDVEHHQWU\LQJWRIXO¿OWKLVQHHGLQWKHUHJLRQZLWKLWVSHGDJRJ\6WULYLQJLQWKH:DNHRI8QSUHFHGHQWHG8QFHUWDLQW\7KHVFKRROZDVRSHQHGE\-DQDQG9HHUOH5RRVHQVRQWKH)UHQFKVLGHRI6W0DUWLQ$VDQ,7SDUWQHUVFKRROLWEURXJKWYDOLGPDULWLPHHGXFDWLRQWRWKH&DULEEHDQZKLFKLVUHFRJQL]HGZRUOGZLGH*DUWK6WH\QSXUFKDVHGWKHVFKRROLQ)HEMXVWDVWKHZRUOGVKXWGRZQIRUWKH&29,'SDQGHPLF$VSHRSOHUHWKRXJKWWKHLUFDUHHUSDWKVDQGIXWXUHVLQWKHZDNHRIXQSUHFHGHQWHGXQFHUWDLQW\WKH0DULWLPH6FKRROVDZDSSOLFDWLRQVWRWDNHFRXUVHVFRPHÀRRGLQJLQ ÀÔåÜçÜàØÆÖÛââßâÙçÛØÊØæç¼á×ÜØæÜæÔÙßÜÔçØ×êÜçÛæâàØÚåØÔçÔá×éÔåÜØ×ÖâàãÔáÜØæêÛâÔåØÔßêÔìæßââÞÜáÚçâÚÜéØÞÜ×æçÛØÜååæçÝâÕ¡ ºÔåçÛÆçØìáÂêáØåŸÀÔåÜçÜàØÆÖÛââßâÙçÛØÊØæç¼á×ÜØæ ¸ëÖØßßØáçÆÖÛââßæÜá¶ÔåÜÕÕØÔ៥£¥¦ ZZZWKHNQRZOHGJHUHYLHZFRP 6HSWHPEHU_ ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU âÙçÛØ ¸áÛÔáÖÜáÚçÛØÃåâÙØææÜâáÔ߶âàãØçØáÖìêÜçÛÀÔåÜçÜàØÇåÔÜáÜáÚ RDGYDQFHDQGH[SDQGWKHJOREDOHFRQRP\HVWDEOLVKLQJDVXVWDLQDEOHPDULWLPHWUDQVSRUWDWLRQLQGXVWU\LVHVVHQWLDO7KHQHHGIRUVKLSSLQJVHUYLFHVZLOOXQGRXEWHGO\LQFUHDVHRYHUWLPH6LQFHWKHGHYHORSPHQWRIJOREDOWUDGHQHDUO\QRFRXQWU\FDQQRZEHFRPSOHWHO\VHOIVX\rvFLHQW(DFKQDWLRQHQJDJHVLQWKH7KHVKLSSLQJVHFWRUKRZHYHULVGHSHQGHQWRQDVX\rvFLHQWVXSSO\RIVHDIDUHUVWRFUHZWKHVKLSVWKDWWUDQVSRUWWKHYLWDOVXSSOLHVRQZKLFKHYHU\RQHUHOLHVLIWKHZRUOGLVWREHVDIHVHFXUHDQGH\rvFLHQW  7KHUROHRIPDULWLPHHGXFDWLRQLVWR  QXUWXUHWKHVHLGHDOSURIHVVLRQDOV7KLVHGXFDWLRQLVPRUHVLJQL¿FDQWLQWKHSURFHVVRIVHOOLQJZKDWLWSURGXFHVDQGJHWWLQJZKDWLWQHHGVRQVRPHOHYHOHYHU\QDWLRQFDQUHO\RQLWVRZQUHVRXUFHV6KLSSLQJKDVKLVWRULFDOO\R\ruHUHGWKHRQO\WUXO\HFRQRPLFDOURXWHWRFDUU\EXONJRRGVRYHUDQ\VLJQL¿FDQWGLVWDQFHDQGWKHJURZWKRIVKLSSLQJDQGWKHFUHDWLRQRIDZRUOGWUDGHRUGHUDUHFORVHO\LQWHUZRYHQ&DULEEHDQUHJLRQVLQFHWKH&DULEEHDQLVVXUURXQGHGE\ZDWHUDQGWUDYHOWRXULVPDQGFDUJRUHO\KHDYLO\RQZHOOWUDLQHGFUHZ0DULWLPH6FKRRORIWKH:HVW,QGLHV 06:, KDVEHHQWU\LQJWRIXO¿OWKLVQHHGLQWKHUHJLRQZLWKLWVSHGDJRJ\6WULYLQJLQWKH:DNHRI8QSUHFHGHQWHG8QFHUWDLQW\7KHVFKRROZDVRSHQHGE\-DQDQG9HHUOH5RRVHQVRQWKH)UHQFKVLGHRI6W0DUWLQ$VDQ,7SDUWQHUVFKRROLWEURXJKWYDOLGPDULWLPHHGXFDWLRQWRWKH&DULEEHDQZKLFKLVUHFRJQL]HGZRUOGZLGH*DUWK6WH\QSXUFKDVHGWKHVFKRROLQ)HEMXVWDVWKHZRUOGVKXWGRZQIRUWKH&29,'SDQGHPLF$VSHRSOHUHWKRXJKWWKHLUFDUHHUSDWKVDQGIXWXUHVLQWKHZDNHRIXQSUHFHGHQWHGXQFHUWDLQW\WKH0DULWLPH6FKRROVDZDSSOLFDWLRQVWRWDNHFRXUVHVFRPHÀRRGLQJLQ ÀÔåÜçÜàØÆÖÛââßâÙçÛØÊØæç¼á×ÜØæÜæÔÙßÜÔçØ×êÜçÛæâàØÚåØÔçÔá×éÔåÜØ×ÖâàãÔáÜØæêÛâÔåØÔßêÔìæßââÞÜáÚçâÚÜéØÞÜ×æçÛØÜååæçÝâÕ¡ ºÔåçÛÆçØìáÂêáØåŸÀÔåÜçÜàØÆÖÛââßâÙçÛØÊØæç¼á×ÜØæ ¸ëÖØßßØáçÆÖÛââßæÜá¶ÔåÜÕÕØÔ៥£¥¦ ZZZWKHNQRZOHGJHUHYLHZFRP 6HSWHPEHU_ ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU DFKDQFHWRWUDLQDZKROHQHZVHWRIFUHZDQGFDSWDLQVIRUWKHEXGGLQJWRXURSHUDWRUEXVLQHVVRQ6W0DDUWHQDQGIRUWKRVHORRNLQJDERDUGWRWKHPHJD\DFKWLQGXVWU\(QVXULQJ%HWWHU&DUHHUV06:,VSHFLDOL]HVLQ0DULWLPH&RXUVHV,QUHFHQW\HDUVPRVWLVODQGVKDYHEHFRPHVWULFWHUZLWKWKHLUUHTXLUHPHQWVIRURSHUDWRUVWREHOLFHQVHGDQGWUDLQHG7KHDGGHGERQXVLVWKDWZLWKVRPHH[SHULHQFHDQGIRUH[DPSOHWKH67&:FRXUVHDVD¿UVWVWHSFDQGLGDWHVDUHLPPHGLDWHO\HPSOR\DEOHLQWKHLQGXVWU\ZLWKDVWHDG\DQGKLJKSD\LQJLQFRPH7KH67&:LVWKHVWDQGDUGLQVHDPDQVKLSDQGR\ruHUVFDQGLGDWHVWKHRSSRUWXQLW\WRHQWHUWKH0DULWLPH¿HOGDWHQWU\OHYHOZLWKDYHU\KLJKUDWHRISD\,QDGGLWLRQWKH03RZHUERDWZKLOHEHLQJDUHFUHDWLRQDOFRXUVHR\ruHUVFDQGLGDWHVDFKDQFHWRVWDUW&DSWDLQSRZHUYHVVHOVWRUXQWHQGHUVIRU\DFKWVDQGPDULQDV*DUWK6WH\QUHFHQWO\GHYHORSHGDEHJLQQHUHQJLQHHULQJFRXUVHWKDWLVHQGRUVHGDQGOLFHQVHGE\,7$Q\H[SHULHQFHZLWKHQJLQHVDOORZVDFDQGLGDWHWRPRYHDKHDGDQGEHFRPHPRUHYHUVDWLOHLQWKHLU¿HOG$3HUVRQDO:DWHUFUDIW&RXUVH RSHUDWLRQRIMHWVNLV LVDRQHGD\IXQFRXUVHWRXQGHUVWDQGWKHSURSHUSURFHGXUHDQGFDUHRIMHWVNLV7KH\RXWKRI6W0DDUWHQDQGWKHVXUURXQGLQJLVODQGVDUHLQQHHGRIWUDLQLQJDQGGLUHFWLRQ0DQ\KDYHQRSURVSHFWVDIWHUVFKRRODQGWKH0DULWLPH,QGXVWU\LVDQH[FLWLQJ¿HOGZLWKJUHDWXSZDUGPRPHQWXP7KHVFKRROZDQWVWRRSHQGRRUVIRUWKHPDQGGHYHORSDFRQ¿GHQWDQGDFFRPSOLVKHGPDULWLPHZRUNIRUFHLQ6W0DDUWHQ)XO¿OOLQJ/LIHORQJ'UHDPV*DUWK6WH\QLVWKHRZQHULQVWUXFWRURSSRUWXQLWLHVDEURDG,WVHHVLQGLYLGXDOQHHGVDQGPHHWVWKHQHHGRIWKHLQGLYLGXDOZKLFKHQVXUHVWKHLUVXFFHVVDQGWKHVXFFHVVRIWKHVFKRROLQWXUQ4XDOLW\+DQGV2Q&RXUVHV7KHVFKRROLVGHYHORSLQJWHDFKLQJYLGHRVIRUVNLOOVOLNHNQRWW\LQJDQGVSOLFLQJVRVWXGHQWVKDYHUHJXODUUHIHUHQFHVDQGFDQHQMR\VRPHLQGHSHQGHQWVWXG\.LG]DW6HDSURYLGHVTXDOLW\KDQGVRQFRXUVHVOLNHERDWPDLQWHQDQFHDVRQO\VRPHDUHERRNVFKRODUV7KHVFKRROFXUUHQWO\KDVDQSHUFHQWHPSOR\PHQWUDWHZLWKLWV.LG]DW6HDSURJUDP7KHVFKRROLVD\rvOLDWHGZLWKVRPHJUHDWDQGYDULHGFRPSDQLHVZKRDUHDOZD\VORRNLQJWRJLYHNLGVWKHLU¿UVWMRE$TXD0DQLD$GYHQWXUHVDWRXURSHUDWRUFRPSDQ\,*0DULQDV6W0DDUWHQ6DLOVDQG).*5LJJLQJWRPHQWLRQDIHZ06:,ZRUNVFORVHO\ZLWKWKH6W0DDUWHQDFKW&OXEWRJHWSHRSOHWKHLU¿UVWH[SHULHQFHVRXWRQWKHZDWHUVDLOLQJVPDOORSWLPLVWVDQGGLQJKLHV7KHSDUWQHUVKLSKDVDOORZHG\RXQJVWHUVWRUHFHLYHWKHLU'LQJK\6DLOLQJFHUWL¿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¿UVWWKULOODQGH[FLWHPHQWRIFRPSHWLWLRQVDLOLQJNHHSVWKHLQVWUXFWRUVLQYROYHGDQGHDJHUWRVKRZWKHQH[WJHQHUDWLRQRIVDLORUVKRZLWLVGRQH6WDUWLQJLQ)HEDWWKHKHLJKWRIWKHSDQGHPLFZDVDFKDOOHQJHEXWSHRSOHZHUHUHWKLQNLQJWKHLUIXWXUHVDQGZHUHNHHQWRWU\VRPHWKLQJQHZDQGWDNHWKHLUOLYHVLQDGL\ruHUHQWGLUHFWLRQ0DQ\VLJQHGXSIRUFRXUVHVDVWKH\¿QDOO\KDGWKHWLPHDQGZHUHIXO¿OOLQJOLIHORQJGUHDPVDQGDQHHGWRFKDQJHWKHLURFFXSDWLRQ2YHUFRPLQJ(GXFDWLRQDO%DUULHUV*HWWLQJSHUPLWVDQGHQGRUVHPHQWVWRWHDFKDQGKDYHWKHFHUWL¿FDWHVYDOLGDWHGZDVDELJFKDOOHQJHLQLWLDOO\IRUWKHVFKRRO7KHORFDO%RDW0DVWHU&RXUVHZKLFKR\ruHUVFDQGLGDWHVDFRPPHUFLDOO\HQGRUVHGFDSWDLQ¶VOLFHQVHYDOLGLQWKH&DULEEHDQLVWKHELJWLFNHWDQGXQGHUWKH:KLWH)ODJRIWKH1HWKHUODQGVKROGVZHLJKWWKURXJKRXWWKHLVODQGV,WKDVEHHQDFKDOOHQJHWR¿QGDJUHHPHQWDPRQJWKH0DULWLPH$\ruDLUVRQHDFKLVODQG:LWKWKHVXSSRUWDQGNQRZOHGJHRI6W0DDUWHQ0DULWLPH$\ruDLUV06:,KDVSDYHGWKHZD\IRUUHFRJQL]HG&DSWDLQOLFHQVLQJWKURXJKRXWWKH&DULEEHDQ:KLOHPDQ\PHJD\DFKWFUHZVFRPHIRUUHIUHVKHUFRXUVHVWKHIRFXVRIWKHVFKRROKDVDOZD\VEHHQ6W0DDUWHQ¶V\RXWKZLWKJUHDWSURJUDPVOLNH.LG]DW6HD7KHVFKRROKDVHQFRXUDJHGJLUOVLQWKH¿HOGDQGVHHQWKHPJRIDUZLWK ÇÛØæÖÛââßÖèååØáçßìÛÔæÔá«£ãØåÖØáçØàãßâìàØáçåÔçØêÜçÛÜçæ¾Ü×íÔçÆØÔãåâÚåÔà¡ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU DFKDQFHWRWUDLQDZKROHQHZVHWRIFUHZDQGFDSWDLQVIRUWKHEXGGLQJWRXURSHUDWRUEXVLQHVVRQ6W0DDUWHQDQGIRUWKRVHORRNLQJDERDUGWRWKHPHJD\DFKWLQGXVWU\(QVXULQJ%HWWHU&DUHHUV06:,VSHFLDOL]HVLQ0DULWLPH&RXUVHV,QUHFHQW\HDUVPRVWLVODQGVKDYHEHFRPHVWULFWHUZLWKWKHLUUHTXLUHPHQWVIRURSHUDWRUVWREHOLFHQVHGDQGWUDLQHG7KHDGGHGERQXVLVWKDWZLWKVRPHH[SHULHQFHDQGIRUH[DPSOHWKH67&:FRXUVHDVD¿UVWVWHSFDQGLGDWHVDUHLPPHGLDWHO\HPSOR\DEOHLQWKHLQGXVWU\ZLWKDVWHDG\DQGKLJKSD\LQJLQFRPH7KH67&:LVWKHVWDQGDUGLQVHDPDQVKLSDQGR\ruHUVFDQGLGDWHVWKHRSSRUWXQLW\WRHQWHUWKH0DULWLPH¿HOGDWHQWU\OHYHOZLWKDYHU\KLJKUDWHRISD\,QDGGLWLRQWKH03RZHUERDWZKLOHEHLQJDUHFUHDWLRQDOFRXUVHR\ruHUVFDQGLGDWHVDFKDQFHWRVWDUW&DSWDLQSRZHUYHVVHOVWRUXQWHQGHUVIRU\DFKWVDQGPDULQDV*DUWK6WH\QUHFHQWO\GHYHORSHGDEHJLQQHUHQJLQHHULQJFRXUVHWKDWLVHQGRUVHGDQGOLFHQVHGE\,7$Q\H[SHULHQFHZLWKHQJLQHVDOORZVDFDQGLGDWHWRPRYHDKHDGDQGEHFRPHPRUHYHUVDWLOHLQWKHLU¿HOG$3HUVRQDO:DWHUFUDIW&RXUVH RSHUDWLRQRIMHWVNLV LVDRQHGD\IXQFRXUVHWRXQGHUVWDQGWKHSURSHUSURFHGXUHDQGFDUHRIMHWVNLV7KH\RXWKRI6W0DDUWHQDQGWKHVXUURXQGLQJLVODQGVDUHLQQHHGRIWUDLQLQJDQGGLUHFWLRQ0DQ\KDYHQRSURVSHFWVDIWHUVFKRRODQGWKH0DULWLPH,QGXVWU\LVDQH[FLWLQJ¿HOGZLWKJUHDWXSZDUGPRPHQWXP7KHVFKRROZDQWVWRRSHQGRRUVIRUWKHPDQGGHYHORSDFRQ¿GHQWDQGDFFRPSOLVKHGPDULWLPHZRUNIRUFHLQ6W0DDUWHQ)XO¿OOLQJ/LIHORQJ'UHDPV*DUWK6WH\QLVWKHRZQHULQVWUXFWRURSSRUWXQLWLHVDEURDG,WVHHVLQGLYLGXDOQHHGVDQGPHHWVWKHQHHGRIWKHLQGLYLGXDOZKLFKHQVXUHVWKHLUVXFFHVVDQGWKHVXFFHVVRIWKHVFKRROLQWXUQ4XDOLW\+DQGV2Q&RXUVHV7KHVFKRROLVGHYHORSLQJWHDFKLQJYLGHRVIRUVNLOOVOLNHNQRWW\LQJDQGVSOLFLQJVRVWXGHQWVKDYHUHJXODUUHIHUHQFHVDQGFDQHQMR\VRPHLQGHSHQGHQWVWXG\.LG]DW6HDSURYLGHVTXDOLW\KDQGVRQFRXUVHVOLNHERDWPDLQWHQDQFHDVRQO\VRPHDUHERRNVFKRODUV7KHVFKRROFXUUHQWO\KDVDQSHUFHQWHPSOR\PHQWUDWHZLWKLWV.LG]DW6HDSURJUDP7KHVFKRROLVD\rvOLDWHGZLWKVRPHJUHDWDQGYDULHGFRPSDQLHVZKRDUHDOZD\VORRNLQJWRJLYHNLGVWKHLU¿UVWMRE$TXD0DQLD$GYHQWXUHVDWRXURSHUDWRUFRPSDQ\,*0DULQDV6W0DDUWHQ6DLOVDQG).*5LJJLQJWRPHQWLRQDIHZ06:,ZRUNVFORVHO\ZLWKWKH6W0DDUWHQDFKW&OXEWRJHWSHRSOHWKHLU¿UVWH[SHULHQFHVRXWRQWKHZDWHUVDLOLQJVPDOORSWLPLVWVDQGGLQJKLHV7KHSDUWQHUVKLSKDVDOORZHG\RXQJVWHUVWRUHFHLYHWKHLU'LQJK\6DLOLQJFHUWL¿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¿UVWWKULOODQGH[FLWHPHQWRIFRPSHWLWLRQVDLOLQJNHHSVWKHLQVWUXFWRUVLQYROYHGDQGHDJHUWRVKRZWKHQH[WJHQHUDWLRQRIVDLORUVKRZLWLVGRQH6WDUWLQJLQ)HEDWWKHKHLJKWRIWKHSDQGHPLFZDVDFKDOOHQJHEXWSHRSOHZHUHUHWKLQNLQJWKHLUIXWXUHVDQGZHUHNHHQWRWU\VRPHWKLQJQHZDQGWDNHWKHLUOLYHVLQDGL\ruHUHQWGLUHFWLRQ0DQ\VLJQHGXSIRUFRXUVHVDVWKH\¿QDOO\KDGWKHWLPHDQGZHUHIXO¿OOLQJOLIHORQJGUHDPVDQGDQHHGWRFKDQJHWKHLURFFXSDWLRQ2YHUFRPLQJ(GXFDWLRQDO%DUULHUV*HWWLQJSHUPLWVDQGHQGRUVHPHQWVWRWHDFKDQGKDYHWKHFHUWL¿FDWHVYDOLGDWHGZDVDELJFKDOOHQJHLQLWLDOO\IRUWKHVFKRRO7KHORFDO%RDW0DVWHU&RXUVHZKLFKR\ruHUVFDQGLGDWHVDFRPPHUFLDOO\HQGRUVHGFDSWDLQ¶VOLFHQVHYDOLGLQWKH&DULEEHDQLVWKHELJWLFNHWDQGXQGHUWKH:KLWH)ODJRIWKH1HWKHUODQGVKROGVZHLJKWWKURXJKRXWWKHLVODQGV,WKDVEHHQDFKDOOHQJHWR¿QGDJUHHPHQWDPRQJWKH0DULWLPH$\ruDLUVRQHDFKLVODQG:LWKWKHVXSSRUWDQGNQRZOHGJHRI6W0DDUWHQ0DULWLPH$\ruDLUV06:,KDVSDYHGWKHZD\IRUUHFRJQL]HG&DSWDLQOLFHQVLQJWKURXJKRXWWKH&DULEEHDQ:KLOHPDQ\PHJD\DFKWFUHZVFRPHIRUUHIUHVKHUFRXUVHVWKHIRFXVRIWKHVFKRROKDVDOZD\VEHHQ6W0DDUWHQ¶V\RXWKZLWKJUHDWSURJUDPVOLNH.LG]DW6HD7KHVFKRROKDVHQFRXUDJHGJLUOVLQWKH¿HOGDQGVHHQWKHPJRIDUZLWK ÇÛØæÖÛââßÖèååØáçßìÛÔæÔá«£ãØåÖØáçØàãßâìàØáçåÔçØêÜçÛÜçæ¾Ü×íÔçÆØÔãåâÚåÔà¡ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU KH&DULEEHDQDUHJLRQNQRZQIRULWVVWXQQLQJODQGVFDSHVDQGYLEUDQWFXOWXUHVKDVDFRPSOH[DQGWXPXOWXRXVKLVWRU\VKDSHGVLJQL¿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nVFXOWXUHVRFLHW\DQGHGXFDWLRQ&XOWXUDO)XVLRQDQG'LYHUVLW\2QHRIWKHODVWLQJLPSDFWVRIFRORQLDOLVPLQWKH&DULEEHDQLVWKHIXVLRQRIGLYHUVHFXOWXUHV,QGLJHQRXV$IULFDQ(XURSHDQDQG$VLDQFXOWXUHVFRQYHUJHGOHDGLQJWRDWDSHVWU\RIWUDGLWLRQVODQJXDJHVDQGSUDFWLFHV7KLVFXOWXUDOGLYHUVLW\FRQWLQXHVWRLQÀXHQFHHGXFDWLRQSRVLWLYHO\IRVWHULQJWROHUDQFHPXOWLFXOWXUDOLVPDQGDQDSSUHFLDWLRQIRUGL\ruHUHQWSHUVSHFWLYHV/LQJXLVWLF,PSDFW&RORQLDOLVPLQWURGXFHG(XURSHDQODQJXDJHVVXFKDV(QJOLVK)UHQFKDQG6SDQLVKWRWKH&DULEEHDQ:KLOHWKLVOLQJXLVWLFLPSRVLWLRQZDVDGLUHFWFRQVHTXHQFHRIFRORQLDOUXOHLWKDVDOVRHQULFKHGWKHUHJLRQ\nVOLQJXLVWLFODQGVFDSH5IF /u‰š PG}o}v]o]uPO µŸ}v JOUIFŒ]v/vGµv}vD}ŒvµŸ}vZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU KH&DULEEHDQDUHJLRQNQRZQIRULWVVWXQQLQJODQGVFDSHVDQGYLEUDQWFXOWXUHVKDVDFRPSOH[DQGWXPXOWXRXVKLVWRU\VKDSHGVLJQL¿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nVFXOWXUHVRFLHW\DQGHGXFDWLRQ&XOWXUDO)XVLRQDQG'LYHUVLW\2QHRIWKHODVWLQJLPSDFWVRIFRORQLDOLVPLQWKH&DULEEHDQLVWKHIXVLRQRIGLYHUVHFXOWXUHV,QGLJHQRXV$IULFDQ(XURSHDQDQG$VLDQFXOWXUHVFRQYHUJHGOHDGLQJWRDWDSHVWU\RIWUDGLWLRQVODQJXDJHVDQGSUDFWLFHV7KLVFXOWXUDOGLYHUVLW\FRQWLQXHVWRLQÀXHQFHHGXFDWLRQSRVLWLYHO\IRVWHULQJWROHUDQFHPXOWLFXOWXUDOLVPDQGDQDSSUHFLDWLRQIRUGL\ruHUHQWSHUVSHFWLYHV/LQJXLVWLF,PSDFW&RORQLDOLVPLQWURGXFHG(XURSHDQODQJXDJHVVXFKDV(QJOLVK)UHQFKDQG6SDQLVKWRWKH&DULEEHDQ:KLOHWKLVOLQJXLVWLFLPSRVLWLRQZDVDGLUHFWFRQVHTXHQFHRIFRORQLDOUXOHLWKDVDOVRHQULFKHGWKHUHJLRQ\nVOLQJXLVWLFODQGVFDSH5IF /u‰š PG}o}v]o]uPO µŸ}v JOUIFŒ]v/vGµv}vD}ŒvµŸ}vZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU 7KHDELOLW\WRVSHDNPXOWLSOHODQJXDJHVRIWHQUHIHUUHGWRDVELOLQJXDOLVPRUPXOWLOLQJXDOLVPLVDFRPPRQVNLOOLQWKH&DULEEHDQFRQWULEXWLQJWRH\ruHFWLYHFRPPXQLFDWLRQDQGFXOWXUDOH[FKDQJH(GXFDWLRQDO,QIUDVWUXFWXUH&RORQLDOSRZHUVHVWDEOLVKHGWKHIRXQGDWLRQIRUIRUPDOHGXFDWLRQLQWKH&DULEEHDQ6FKRROVXQLYHUVLWLHVDQGHGXFDWLRQDOV\VWHPVZHUHLQWURGXFHGWRVHUYHYDULRXVSXUSRVHVLQFOXGLQJWKHWUDLQLQJRIDORFDOZRUNIRUFHDQGWKHSURSDJDWLRQRI(XURSHDQYDOXHV7RGD\WKLVHGXFDWLRQDOLQIUDVWUXFWXUHUHPDLQVDYLWDOUHVRXUFHSURYLGLQJDFFHVVWRHGXFDWLRQIRUWKHUHJLRQ\nVLQKDELWDQWV(GXFDWLRQDO+HULWDJH&DULEEHDQFRXQWULHVKDYHEXLOWXSRQWKHLUFRORQLDOHGXFDWLRQDOKHULWDJHWRFUHDWHUHQRZQHGLQVWLWXWLRQV7KHVHLQVWLWXWLRQVR\ruHUZRUOGFODVVHGXFDWLRQDQGFRQWULEXWHVLJQL¿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ruRUWVKDYHEHHQPDGHWRFUHDWHLQFOXVLYHHGXFDWLRQDOV\VWHPVWKDWSURPRWHVRFLDOHTXLW\HTXDODFFHVVWRRSSRUWXQLWLHVDQGUHVSHFWIRUGLYHUVHLGHQWLWLHV&XOWXUDO3ULGHDQG,GHQWLW\0DQ\&DULEEHDQQDWLRQVFHOHEUDWHWKHLUFXOWXUDOKHULWDJHDVDPHDQVRIFRXQWHULQJWKHQHJDWLYHDVSHFWVRIFRORQLDOLVP7KLVFHOHEUDWLRQIRVWHUVDGHHSVHQVHRISULGHDQGLGHQWLW\UHLQIRUFLQJWKHLPSRUWDQFHRISUHVHUYLQJDQGSDVVLQJGRZQWUDGLWLRQVWRIXWXUHJHQHUDWLRQV(FRQRPLF'LYHUVL¿FDWLRQDQG,QQRYDWLRQ(GXFDWLRQSOD\VDSLYRWDOUROHLQGLYHUVLI\LQJWKH&DULEEHDQ\nVHFRQRPLHVEH\RQGWUDGLWLRQDOLQGXVWULHVVXFKDVDJULFXOWXUHDQGWRXULVP,WIRVWHUVLQQRYDWLRQHQWUHSUHQHXUVKLSDQGWKHGHYHORSPHQWRIVNLOOVQHFHVVDU\IRUDNQRZOHGJHEDVHGHFRQRP\'LYHUVLW\LQ(GXFDWLRQ&RORQLDOLVP\nVOHJDF\RIFXOWXUDOIXVLRQLVUHÀHFWHGLQWKHGLYHUVLW\RIHGXFDWLRQDOR\ruHULQJVLQWKH&DULEEHDQ6WXGHQWVKDYHDFFHVVWRDZLGHUDQJHRIDFDGHPLFGLVFLSOLQHVLQFOXGLQJWKRVHLQVSLUHGE\WKHLQGLJHQRXV$IULFDQDQG(XURSHDQURRWVRIWKHUHJLRQ7KLVGLYHUVLW\DOORZVVWXGHQWVWRH[SORUHWKHLULQWHUHVWVDQGWDOHQWVFRQWULEXWLQJWRDZHOOURXQGHGHGXFDWLRQ(QYLURQPHQWDO$ZDUHQHVV7KH&DULEEHDQ\nVFRORQLDOKLVWRU\KDVKDGDSURIRXQGLPSDFWRQLWVHQYLURQPHQWIURPGHIRUHVWDWLRQWRWKHLQWURGXFWLRQRIQRQQDWLYHVSHFLHV$VDUHVSRQVHPRGHUQ&DULEEHDQHGXFDWLRQSODFHVDVWURQJHPSKDVLVRQHQYLURQPHQWDODZDUHQHVVDQGVXVWDLQDELOLW\6WXGHQWVDUHHGXFDWHGDERXWWKHLPSRUWDQFHRISUHVHUYLQJWKHUHJLRQ\nVXQLTXHHFRV\VWHPVDQGDUHRIWHQLQYROYHGLQFRQVHUYDWLRQH\ruRUWV,QWHUFRQQHFWHGQHVVDQG5HJLRQDO&RRSHUDWLRQ&RORQLDOLVPLPSRVHGDUWL¿FLDOERUGHUVRQWKH&DULEEHDQGLYLGLQJWKHUHJLRQLQWRQXPHURXVQDWLRQVDQGWHUULWRULHV+RZHYHUPRGHUQ&DULEEHDQHGXFDWLRQSURPRWHVUHJLRQDOFRRSHUDWLRQDQGXQLW\6WXGHQWVOHDUQDERXWWKHVKDUHGFKDOOHQJHVDQGRSSRUWXQLWLHVIDFHGE\&DULEEHDQQDWLRQVDQGDUHHQFRXUDJHGWRZRUNWRJHWKHUWRDGGUHVVFRPPRQLVVXHVVXFKDVFOLPDWHFKDQJHWUDGHDQGKHDOWKFDUH,QFRQFOXVLRQFRORQLDOLVPKDVOHIWDPXOWLIDFHWHGOHJDF\LQ&DULEEHDQHGXFDWLRQ:KLOHLWEURXJKWVLJQL¿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ruHFWLYHFRPPXQLFDWLRQDQGFXOWXUDOH[FKDQJH(GXFDWLRQDO,QIUDVWUXFWXUH&RORQLDOSRZHUVHVWDEOLVKHGWKHIRXQGDWLRQIRUIRUPDOHGXFDWLRQLQWKH&DULEEHDQ6FKRROVXQLYHUVLWLHVDQGHGXFDWLRQDOV\VWHPVZHUHLQWURGXFHGWRVHUYHYDULRXVSXUSRVHVLQFOXGLQJWKHWUDLQLQJRIDORFDOZRUNIRUFHDQGWKHSURSDJDWLRQRI(XURSHDQYDOXHV7RGD\WKLVHGXFDWLRQDOLQIUDVWUXFWXUHUHPDLQVDYLWDOUHVRXUFHSURYLGLQJDFFHVVWRHGXFDWLRQIRUWKHUHJLRQ\nVLQKDELWDQWV(GXFDWLRQDO+HULWDJH&DULEEHDQFRXQWULHVKDYHEXLOWXSRQWKHLUFRORQLDOHGXFDWLRQDOKHULWDJHWRFUHDWHUHQRZQHGLQVWLWXWLRQV7KHVHLQVWLWXWLRQVR\ruHUZRUOGFODVVHGXFDWLRQDQGFRQWULEXWHVLJQL¿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ruRUWVKDYHEHHQPDGHWRFUHDWHLQFOXVLYHHGXFDWLRQDOV\VWHPVWKDWSURPRWHVRFLDOHTXLW\HTXDODFFHVVWRRSSRUWXQLWLHVDQGUHVSHFWIRUGLYHUVHLGHQWLWLHV&XOWXUDO3ULGHDQG,GHQWLW\0DQ\&DULEEHDQQDWLRQVFHOHEUDWHWKHLUFXOWXUDOKHULWDJHDVDPHDQVRIFRXQWHULQJWKHQHJDWLYHDVSHFWVRIFRORQLDOLVP7KLVFHOHEUDWLRQIRVWHUVDGHHSVHQVHRISULGHDQGLGHQWLW\UHLQIRUFLQJWKHLPSRUWDQFHRISUHVHUYLQJDQGSDVVLQJGRZQWUDGLWLRQVWRIXWXUHJHQHUDWLRQV(FRQRPLF'LYHUVL¿FDWLRQDQG,QQRYDWLRQ(GXFDWLRQSOD\VDSLYRWDOUROHLQGLYHUVLI\LQJWKH&DULEEHDQ\nVHFRQRPLHVEH\RQGWUDGLWLRQDOLQGXVWULHVVXFKDVDJULFXOWXUHDQGWRXULVP,WIRVWHUVLQQRYDWLRQHQWUHSUHQHXUVKLSDQGWKHGHYHORSPHQWRIVNLOOVQHFHVVDU\IRUDNQRZOHGJHEDVHGHFRQRP\'LYHUVLW\LQ(GXFDWLRQ&RORQLDOLVP\nVOHJDF\RIFXOWXUDOIXVLRQLVUHÀHFWHGLQWKHGLYHUVLW\RIHGXFDWLRQDOR\ruHULQJVLQWKH&DULEEHDQ6WXGHQWVKDYHDFFHVVWRDZLGHUDQJHRIDFDGHPLFGLVFLSOLQHVLQFOXGLQJWKRVHLQVSLUHGE\WKHLQGLJHQRXV$IULFDQDQG(XURSHDQURRWVRIWKHUHJLRQ7KLVGLYHUVLW\DOORZVVWXGHQWVWRH[SORUHWKHLULQWHUHVWVDQGWDOHQWVFRQWULEXWLQJWRDZHOOURXQGHGHGXFDWLRQ(QYLURQPHQWDO$ZDUHQHVV7KH&DULEEHDQ\nVFRORQLDOKLVWRU\KDVKDGDSURIRXQGLPSDFWRQLWVHQYLURQPHQWIURPGHIRUHVWDWLRQWRWKHLQWURGXFWLRQRIQRQQDWLYHVSHFLHV$VDUHVSRQVHPRGHUQ&DULEEHDQHGXFDWLRQSODFHVDVWURQJHPSKDVLVRQHQYLURQPHQWDODZDUHQHVVDQGVXVWDLQDELOLW\6WXGHQWVDUHHGXFDWHGDERXWWKHLPSRUWDQFHRISUHVHUYLQJWKHUHJLRQ\nVXQLTXHHFRV\VWHPVDQGDUHRIWHQLQYROYHGLQFRQVHUYDWLRQH\ruRUWV,QWHUFRQQHFWHGQHVVDQG5HJLRQDO&RRSHUDWLRQ&RORQLDOLVPLPSRVHGDUWL¿FLDOERUGHUVRQWKH&DULEEHDQGLYLGLQJWKHUHJLRQLQWRQXPHURXVQDWLRQVDQGWHUULWRULHV+RZHYHUPRGHUQ&DULEEHDQHGXFDWLRQSURPRWHVUHJLRQDOFRRSHUDWLRQDQGXQLW\6WXGHQWVOHDUQDERXWWKHVKDUHGFKDOOHQJHVDQGRSSRUWXQLWLHVIDFHGE\&DULEEHDQQDWLRQVDQGDUHHQFRXUDJHGWRZRUNWRJHWKHUWRDGGUHVVFRPPRQLVVXHVVXFKDVFOLPDWHFKDQJHWUDGHDQGKHDOWKFDUH,QFRQFOXVLRQFRORQLDOLVPKDVOHIWDPXOWLIDFHWHGOHJDF\LQ&DULEEHDQHGXFDWLRQ:KLOHLWEURXJKWVLJQL¿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¿WVERWK\RXQJSHRSOHDQGQDWLRQV7KH&DULEEHDQUHJLRQZKLFKLVKRPHWRPLOOLRQVRI\RXQJSHRSOHEHWZHHQWKHDJHVRIDQGLVQRH[FHSWLRQWRWKLV,QYHVWLQJLQHGXFDWLRQLQWKLVUHJLRQFDQDVVLVWQDWLRQVLQFUHDWLQJPRUHGXUDEOHH\ru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¿HOGWULSV(QVXULQJ%HWWHU3HUVRQDOL]HG$WWHQWLRQ7KLVVFKRRO\HDUWKHUHDUHWHQVWXGHQWVWKDWDWWHQG2FHDQ9LHZ$FDGHP\LQJUDGHVWR%RWKWKH2QWDULR &DQDGLDQ &XUULFXOXPDQGWKH$FHOOXV$PHULFDQRQOLQHSURJUDPVDUHR\ru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nVFXUULFXOXPSUDFWLFDOOHDUQLQJRSSRUWXQLWLHVSOD\DVLJQL¿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¿OOLQJWKHPZLWKLQJUHGLHQWVOLNHKDPDQGFKHHVH1XWHOODDQGIUHVKIUXLW7DFRVDQG+RPHPDGH&KRFRODWH&KLS&RRNLHV7KHVWXGHQWVPDGHWDFRVZLWKDOOWKH¿[LQJVLQFOXGLQJFKHHVHOHWWXFHVDOVDDQGVRXUFUHDP)RUGHVVHUWWKH\EDNHGGHOLFLRXVFKRFRODWHFKLSFRRNLHV/DVDJQDDQG&DHVDU6DODG7KHVWXGHQWVSUHSDUHGDKHDUW\ODVDJQDGLVKVHUYHGZLWKDIUHVK&DHVDUVDODG$GGLWLRQDOO\67(0HGXFDWLRQLVHPSKDVL]HGDW2FHDQ9LHZ$FDGHP\DLPHGDWSUHSDULQJVWXGHQWVIRUIXWXUHMREVLQWKHVWFHQWXU\ZRUNIRUFH6WXGHQWVOHDUQDERXWVXEMHFWVVXFKDVURFNVDQGPLQHUDOVKXPDQERG\V\VWHPVDQGYROFDQRHVE\HQJDJLQJLQKDQGVRQDFWLYLWLHVDQGSURMHFWEDVHGOHDUQLQJ2QHUHFHQWH[DPSOHLVZKHQDJUDGHWKUHHVWXGHQWEXLOWDZRUNLQJYROFDQR Ï DQGSUHVHQWHGLWWRKLVFODVVPDWHVDQGVSHFLDOJXHVWVKRQLQJKLVSXEOLFVSHDNLQJDQGSUHVHQWDWLRQVNLOOV$Q$OWHUQDWLYH:D\RI7HDFKLQJ$OWHUQDWLYHWHDFKLQJPHWKRGVDOVRPDNH2FHDQ9LHZ$FDGHP\DQRXWVWDQGLQJVFKRRO7HDFKHUVXVHDUDQJHRIPHWKRGVVXFKDVWHFKQRORJ\ L3DGV&KURPHERRNV/DSWRSVHWF DQGDVVLVWLYHDSSVDORQJZLWK*RRJOH&ODVVURRPDQGD%LJ6FUHHQ79IRUFDVWLQJERWKWHDFKHUOHVVRQVDQGVWXGHQWV\nZRUN*URXSZRUNDQGKDQGVRQDFWLYLWLHVDUHXVHGH[WHQVLYHO\WRUHDFKDOOVWXGHQWV0RUQLQJPHHWLQJVNLFNR\ruZLWKDPLQXWH'DLO\&DOPPLQGIXOQHVVPHGLWDWLRQDQGPDQGDODFRORULQJWRDOORZVWXGHQWVWRUHGXFHVWUHVVDQGDQ[LHW\ERRVWPRRGDQGHQHUJ\OHYHOVDQGLQFUHDVHIRFXVDQGDWWHQWLRQ7KHPRUQLQJPHHWLQJVOLGHWKDWIROORZVKDVDIXQIDFWRIWKHGD\DSUREOHPULGGOHRUMRNHRIWKHGD\DQGDVWXGHQWVXUYH\TXHVWLRQ$VRFLDOHPRWLRQDOYLGHR7HG(GRU\n.LQGQHVVZLWK6WHYH+DUWPDQ\nYLGHRLVWKHQVKDUHGLQRUGHUWRSURPRWHIXUWKHUFULWLFDOWKLQNLQJDQGGLVFXVVLRQDPRQJVWXGHQWV)RVWHULQJD5HVSHFWIXO(QYLURQPHQW,QFOXVLYLW\DQGDZHOFRPLQJHQYLURQPHQWDUHSULRULWL]HGDWWKHVFKRRO7KHWHDFKHUVIRVWHUDQDWPRVSKHUHWKDWLVUHVSHFWIXORIGLYHUVLW\DQGFHOHEUDWHVWKHGL\ruHUHQFHVRIDOOVWXGHQWV2OGHUVWXGHQWVDFWDVPHQWRUVWR\RXQJHUVWXGHQWVLPSDUWLQJYDOXDEOHOLIHVNLOOVDQGEXLOGLQJWKHLUVHOIFRQ¿GHQFH7KHVFKRRODOVRLQYROYHVSDUHQWVDQGFRPPXQLW\PHPEHUVVXFKDVEULQJLQJ$UFKLYH2\rvFHU'DYLG5LFKDUGVRQIURPWKH6W0DDUWHQ*RYHUQPHQWWRVSHDNWRWKHVWXGHQWVRQWKHLPSRUWDQFHRIDUFKLYHVDQGSUHVHUYLQJKLVWRU\7KHVWXGHQWVIRXQGKLVSUHVHQWDWLRQRQWKHKLVWRU\RIVDOWSURGXFWLRQDQGVODYHU\RQWKHLVODQGWREHYHU\HQJDJLQJ&ROODERUDWLRQEHWZHHQVFKRRODQGFRPPXQLW\HQVXUHVDPRUHFRPSUHKHQVLYHHGXFDWLRQZKLFKKHOSVVWXGHQWVWDSLQWRWKHLUIXOOSRWHQWLDO)XUWKHUPRUH¿HOGWULSVDUHFRQVLGHUHGDQHVVHQWLDOSDUWRIWKHVFKRRO\nVFXUULFXOXP)LHOGWULSVDOORZVWXGHQWV 4GIER:MI[&GEHIQ]TVMSVMXM^IWUYEPMX]IHYGEXMSRERHXLILSPMWXMGHIZIPSTQIRXSJIEGLWXYHIRX Ï ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU 0DFBO"DBEFNZ 7JFX .RWXMPPMRK:EPYEFPIOMPPWXLEX,S'I]SRHXLI(PEWWVSSQQLPSRUWDQWSLOODUIRUWKHGHYHORSPHQWDQGHQKDQFHPHQWRIKXPDQFDSLWDOLVHGXFDWLRQ,QYHVWLQJLQHGXFDWLRQEHQH¿WVERWK\RXQJSHRSOHDQGQDWLRQV7KH&DULEEHDQUHJLRQZKLFKLVKRPHWRPLOOLRQVRI\RXQJSHRSOHEHWZHHQWKHDJHVRIDQGLVQRH[FHSWLRQWRWKLV,QYHVWLQJLQHGXFDWLRQLQWKLVUHJLRQFDQDVVLVWQDWLRQVLQFUHDWLQJPRUHGXUDEOHH\ru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¿HOGWULSV(QVXULQJ%HWWHU3HUVRQDOL]HG$WWHQWLRQ7KLVVFKRRO\HDUWKHUHDUHWHQVWXGHQWVWKDWDWWHQG2FHDQ9LHZ$FDGHP\LQJUDGHVWR%RWKWKH2QWDULR &DQDGLDQ &XUULFXOXPDQGWKH$FHOOXV$PHULFDQRQOLQHSURJUDPVDUHR\ru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nVFXUULFXOXPSUDFWLFDOOHDUQLQJRSSRUWXQLWLHVSOD\DVLJQL¿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¿OOLQJWKHPZLWKLQJUHGLHQWVOLNHKDPDQGFKHHVH1XWHOODDQGIUHVKIUXLW7DFRVDQG+RPHPDGH&KRFRODWH&KLS&RRNLHV7KHVWXGHQWVPDGHWDFRVZLWKDOOWKH¿[LQJVLQFOXGLQJFKHHVHOHWWXFHVDOVDDQGVRXUFUHDP)RUGHVVHUWWKH\EDNHGGHOLFLRXVFKRFRODWHFKLSFRRNLHV/DVDJQDDQG&DHVDU6DODG7KHVWXGHQWVSUHSDUHGDKHDUW\ODVDJQDGLVKVHUYHGZLWKDIUHVK&DHVDUVDODG$GGLWLRQDOO\67(0HGXFDWLRQLVHPSKDVL]HGDW2FHDQ9LHZ$FDGHP\DLPHGDWSUHSDULQJVWXGHQWVIRUIXWXUHMREVLQWKHVWFHQWXU\ZRUNIRUFH6WXGHQWVOHDUQDERXWVXEMHFWVVXFKDVURFNVDQGPLQHUDOVKXPDQERG\V\VWHPVDQGYROFDQRHVE\HQJDJLQJLQKDQGVRQDFWLYLWLHVDQGSURMHFWEDVHGOHDUQLQJ2QHUHFHQWH[DPSOHLVZKHQDJUDGHWKUHHVWXGHQWEXLOWDZRUNLQJYROFDQR Ï DQGSUHVHQWHGLWWRKLVFODVVPDWHVDQGVSHFLDOJXHVWVKRQLQJKLVSXEOLFVSHDNLQJDQGSUHVHQWDWLRQVNLOOV$Q$OWHUQDWLYH:D\RI7HDFKLQJ$OWHUQDWLYHWHDFKLQJPHWKRGVDOVRPDNH2FHDQ9LHZ$FDGHP\DQRXWVWDQGLQJVFKRRO7HDFKHUVXVHDUDQJHRIPHWKRGVVXFKDVWHFKQRORJ\ L3DGV&KURPHERRNV/DSWRSVHWF DQGDVVLVWLYHDSSVDORQJZLWK*RRJOH&ODVVURRPDQGD%LJ6FUHHQ79IRUFDVWLQJERWKWHDFKHUOHVVRQVDQGVWXGHQWV\nZRUN*URXSZRUNDQGKDQGVRQDFWLYLWLHVDUHXVHGH[WHQVLYHO\WRUHDFKDOOVWXGHQWV0RUQLQJPHHWLQJVNLFNR\ruZLWKDPLQXWH'DLO\&DOPPLQGIXOQHVVPHGLWDWLRQDQGPDQGDODFRORULQJWRDOORZVWXGHQWVWRUHGXFHVWUHVVDQGDQ[LHW\ERRVWPRRGDQGHQHUJ\OHYHOVDQGLQFUHDVHIRFXVDQGDWWHQWLRQ7KHPRUQLQJPHHWLQJVOLGHWKDWIROORZVKDVDIXQIDFWRIWKHGD\DSUREOHPULGGOHRUMRNHRIWKHGD\DQGDVWXGHQWVXUYH\TXHVWLRQ$VRFLDOHPRWLRQDOYLGHR7HG(GRU\n.LQGQHVVZLWK6WHYH+DUWPDQ\nYLGHRLVWKHQVKDUHGLQRUGHUWRSURPRWHIXUWKHUFULWLFDOWKLQNLQJDQGGLVFXVVLRQDPRQJVWXGHQWV)RVWHULQJD5HVSHFWIXO(QYLURQPHQW,QFOXVLYLW\DQGDZHOFRPLQJHQYLURQPHQWDUHSULRULWL]HGDWWKHVFKRRO7KHWHDFKHUVIRVWHUDQDWPRVSKHUHWKDWLVUHVSHFWIXORIGLYHUVLW\DQGFHOHEUDWHVWKHGL\ruHUHQFHVRIDOOVWXGHQWV2OGHUVWXGHQWVDFWDVPHQWRUVWR\RXQJHUVWXGHQWVLPSDUWLQJYDOXDEOHOLIHVNLOOVDQGEXLOGLQJWKHLUVHOIFRQ¿GHQFH7KHVFKRRODOVRLQYROYHVSDUHQWVDQGFRPPXQLW\PHPEHUVVXFKDVEULQJLQJ$UFKLYH2\rvFHU'DYLG5LFKDUGVRQIURPWKH6W0DDUWHQ*RYHUQPHQWWRVSHDNWRWKHVWXGHQWVRQWKHLPSRUWDQFHRIDUFKLYHVDQGSUHVHUYLQJKLVWRU\7KHVWXGHQWVIRXQGKLVSUHVHQWDWLRQRQWKHKLVWRU\RIVDOWSURGXFWLRQDQGVODYHU\RQWKHLVODQGWREHYHU\HQJDJLQJ&ROODERUDWLRQEHWZHHQVFKRRODQGFRPPXQLW\HQVXUHVDPRUHFRPSUHKHQVLYHHGXFDWLRQZKLFKKHOSVVWXGHQWVWDSLQWRWKHLUIXOOSRWHQWLDO)XUWKHUPRUH¿HOGWULSVDUHFRQVLGHUHGDQHVVHQWLDOSDUWRIWKHVFKRRO\nVFXUULFXOXP)LHOGWULSVDOORZVWXGHQWV 4GIER:MI[&GEHIQ]TVMSVMXM^IWUYEPMX]IHYGEXMSRERHXLILSPMWXMGHIZIPSTQIRXSJIEGLWXYHIRX Ï ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU Ï 8*2IHYGEXMSRMWIQTLEWM^IHEX4GIER:MI[&GEHIQ]EMQIHEXTVITEVMRKWXYHIRXWJSVJYXYVINSFWMRXLIWXGIRXYV][SVOJSVGI Ï WROHDUQRXWVLGHRIWKHFODVVURRPDQGWRH[SHULHQFHQHZWKLQJV7KHVFKRRORUJDQL]HG¿HOGWULSVWKDWDOORZHGVWXGHQWVWROHDUQDERXW6W0DDUWHQ\nVFXOWXUHKLVWRU\DQGHQYLURQPHQWZKLOHIRVWHULQJWHDPZRUNVNLOOV7KHKRUVHEDFNULGLQJWULSWKHFRRNLQJFODVVRQPDNLQJ6XVKLWKHYLVLWWR3DUURW9LOOH%LUG3DUNWKH6WHHOGUXPOHVVRQVDQGWKHND\DNLQJWULSHDFKIDFLOLWDWHGXQLTXHOHDUQLQJRSSRUWXQLWLHVZKLOHFRQWULEXWLQJWRVWXGHQWV\nJURZWK(PSKDVL]LQJ+LGGHQ7DOHQWV2FHDQ9LHZ$FDGHP\SODFHVDVWURQJHPSKDVLVRQWKHDUWV7KHVFKRRO\nVPRQWKO\JURXSDUWDFWLYLW\LVDWHVWDPHQWWRWKLVFRPPLWPHQWDQGSURYLGHVVWXGHQWVZLWKH[FLWLQJRSSRUWXQLWLHVWRGHYHORSWKHLUFUHDWLYLW\DUWVNLOOVDQGFXOWXUDODSSUHFLDWLRQ6WXGHQWVHQJDJHLQDUDQJHRIDUWWHFKQLTXHVLQFOXGLQJEOHQGLQJDFU\OLFSDLQWVLQXQLTXHFUHDWLYHFRPELQDWLRQVDQGZRUNLQJZLWKFRORUKDUPRQLRXVO\WRFUHDWHVWXQQLQJVHDVFDSHSLFWXUHV2WKHUSRSXODUDUWDFWLYLWLHVDW2FHDQ9LHZ$FDGHP\LQFOXGH&DUQLYDO0DVN0DNLQJDQG(DVWHU(JJ'HFRUDWLQJZKLFKDOORZVWXGHQWVWRH[SORUHGL\ruHUHQWPHGLXPVDQGWHFKQLTXHVZKLOHIRVWHULQJWKHLUFUHDWLYLW\DQGXQLTXHDUWLVWLFH[SUHVVLRQ/LNHWKH$UWVWKH3K\VLFDO(GXFDWLRQ3URJUDPLVDOVRJLYHQJUHDWLPSRUWDQFH(YHU\7KXUVGD\DIWHUQRRQVWXGHQWVKDYHWKHRSSRUWXQLW\WRHQJDJHLQDFWLYLWLHVUHODWHGWRVZLPPLQJDQGSRROJDPHVDVZHOODVRXWGRRUDQGLQGRRUJDPHVWKDWSURPRWH¿WQHVVDQGWHDPEXLOGLQJVNLOOV7KHVFKRRODOVRKRVWV6SLULW'D\VVXFKDV6LQW0DDUWHQ'D\+DOORZHHQDQG:DFN\+DLU'D\WRSURPRWHVFKRROVSLULWDPRQJVWVWXGHQWV6WXGHQWVDOVRSDUWLFLSDWHLQD&KULVWPDV6HFUHW6DQWDJLIWH[FKDQJHWRIRVWHUFDPDUDGHULHDQGEXLOGERQGVEHWZHHQFODVVPDWHV7KHVHVXSSRUWLYHDQGFRPPXQLW\EXLOGLQJHYHQWVDUHHYLGHQFHRI2FHDQ9LHZ$FDGHP\\nVFRPPLWPHQWWRFUHDWLQJDIXQDQGHQJDJLQJOHDUQLQJHQYLURQPHQWWKDWLQVWLOOVYDOXDEOHVNLOOVWKDWJREH\RQGWKHFODVVURRP+ROLVWLF'HYHORSPHQWRI(DFK6WXGHQW2FHDQ9LHZ$FDGHP\SULRULWL]HVTXDOLW\HGXFDWLRQDQGWKHKROLVWLFGHYHORSPHQWRIHDFKVWXGHQW:LWKLWVGHGLFDWHGH[SHULHQFHGWHDFKHUVDORQJZLWKSUDFWLFDOOHDUQLQJRSSRUWXQLWLHV67(0HGXFDWLRQLQFOXVLYHHQYLURQPHQWDOWHUQDWLYHWHDFKLQJPHWKRGVDQGLPSDFWIXO¿HOGWULSVWKHVFKRRO\nVFXUULFXOXPR\ruHUVVWXGHQWVDZHOOURXQGHGHGXFDWLRQ6PDOOFODVVURRPVL]HVHQVXUHWKDWHDFKVWXGHQWUHFHLYHVSHUVRQDOL]HGDWWHQWLRQ$ORQJVLGHDOOWKLVFRPPXQLW\LQYROYHPHQWHQVXUHVWKDWVWXGHQWVUHFHLYHWKHEHVWDOOURXQGHGXFDWLRQSRVVLEOH *\GIPPIRXGLSSPWMRXLI(EVMFFIER 0MQFIVPI]'EFMRERH8SHH(LMWLSPQ +SYRHIVW4GIER:MI[&GEHIQ] ZZZWKHNQRZOHGJHUHYLHZFRP 6HSWHPEHU_ ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU Ï 8*2IHYGEXMSRMWIQTLEWM^IHEX4GIER:MI[&GEHIQ]EMQIHEXTVITEVMRKWXYHIRXWJSVJYXYVINSFWMRXLIWXGIRXYV][SVOJSVGI Ï WROHDUQRXWVLGHRIWKHFODVVURRPDQGWRH[SHULHQFHQHZWKLQJV7KHVFKRRORUJDQL]HG¿HOGWULSVWKDWDOORZHGVWXGHQWVWROHDUQDERXW6W0DDUWHQ\nVFXOWXUHKLVWRU\DQGHQYLURQPHQWZKLOHIRVWHULQJWHDPZRUNVNLOOV7KHKRUVHEDFNULGLQJWULSWKHFRRNLQJFODVVRQPDNLQJ6XVKLWKHYLVLWWR3DUURW9LOOH%LUG3DUNWKH6WHHOGUXPOHVVRQVDQGWKHND\DNLQJWULSHDFKIDFLOLWDWHGXQLTXHOHDUQLQJRSSRUWXQLWLHVZKLOHFRQWULEXWLQJWRVWXGHQWV\nJURZWK(PSKDVL]LQJ+LGGHQ7DOHQWV2FHDQ9LHZ$FDGHP\SODFHVDVWURQJHPSKDVLVRQWKHDUWV7KHVFKRRO\nVPRQWKO\JURXSDUWDFWLYLW\LVDWHVWDPHQWWRWKLVFRPPLWPHQWDQGSURYLGHVVWXGHQWVZLWKH[FLWLQJRSSRUWXQLWLHVWRGHYHORSWKHLUFUHDWLYLW\DUWVNLOOVDQGFXOWXUDODSSUHFLDWLRQ6WXGHQWVHQJDJHLQDUDQJHRIDUWWHFKQLTXHVLQFOXGLQJEOHQGLQJDFU\OLFSDLQWVLQXQLTXHFUHDWLYHFRPELQDWLRQVDQGZRUNLQJZLWKFRORUKDUPRQLRXVO\WRFUHDWHVWXQQLQJVHDVFDSHSLFWXUHV2WKHUSRSXODUDUWDFWLYLWLHVDW2FHDQ9LHZ$FDGHP\LQFOXGH&DUQLYDO0DVN0DNLQJDQG(DVWHU(JJ'HFRUDWLQJZKLFKDOORZVWXGHQWVWRH[SORUHGL\ruHUHQWPHGLXPVDQGWHFKQLTXHVZKLOHIRVWHULQJWKHLUFUHDWLYLW\DQGXQLTXHDUWLVWLFH[SUHVVLRQ/LNHWKH$UWVWKH3K\VLFDO(GXFDWLRQ3URJUDPLVDOVRJLYHQJUHDWLPSRUWDQFH(YHU\7KXUVGD\DIWHUQRRQVWXGHQWVKDYHWKHRSSRUWXQLW\WRHQJDJHLQDFWLYLWLHVUHODWHGWRVZLPPLQJDQGSRROJDPHVDVZHOODVRXWGRRUDQGLQGRRUJDPHVWKDWSURPRWH¿WQHVVDQGWHDPEXLOGLQJVNLOOV7KHVFKRRODOVRKRVWV6SLULW'D\VVXFKDV6LQW0DDUWHQ'D\+DOORZHHQDQG:DFN\+DLU'D\WRSURPRWHVFKRROVSLULWDPRQJVWVWXGHQWV6WXGHQWVDOVRSDUWLFLSDWHLQD&KULVWPDV6HFUHW6DQWDJLIWH[FKDQJHWRIRVWHUFDPDUDGHULHDQGEXLOGERQGVEHWZHHQFODVVPDWHV7KHVHVXSSRUWLYHDQGFRPPXQLW\EXLOGLQJHYHQWVDUHHYLGHQFHRI2FHDQ9LHZ$FDGHP\\nVFRPPLWPHQWWRFUHDWLQJDIXQDQGHQJDJLQJOHDUQLQJHQYLURQPHQWWKDWLQVWLOOVYDOXDEOHVNLOOVWKDWJREH\RQGWKHFODVVURRP+ROLVWLF'HYHORSPHQWRI(DFK6WXGHQW2FHDQ9LHZ$FDGHP\SULRULWL]HVTXDOLW\HGXFDWLRQDQGWKHKROLVWLFGHYHORSPHQWRIHDFKVWXGHQW:LWKLWVGHGLFDWHGH[SHULHQFHGWHDFKHUVDORQJZLWKSUDFWLFDOOHDUQLQJRSSRUWXQLWLHV67(0HGXFDWLRQLQFOXVLYHHQYLURQPHQWDOWHUQDWLYHWHDFKLQJPHWKRGVDQGLPSDFWIXO¿HOGWULSVWKHVFKRRO\nVFXUULFXOXPR\ruHUVVWXGHQWVDZHOOURXQGHGHGXFDWLRQ6PDOOFODVVURRPVL]HVHQVXUHWKDWHDFKVWXGHQWUHFHLYHVSHUVRQDOL]HGDWWHQWLRQ$ORQJVLGHDOOWKLVFRPPXQLW\LQYROYHPHQWHQVXUHVWKDWVWXGHQWVUHFHLYHWKHEHVWDOOURXQGHGXFDWLRQSRVVLEOH *\GIPPIRXGLSSPWMRXLI(EVMFFIER 0MQFIVPI]'EFMRERH8SHH(LMWLSPQ +SYRHIVW4GIER:MI[&GEHIQ] ZZZWKHNQRZOHGJHUHYLHZFRP 6HSWHPEHU_ ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU ¯ FRUHYDOXHVVXFKDVLQWHJULW\FRPSDVVLRQVHOIGLVFLSOLQHDQGUHVSRQVLELOLW\7KHPLVVLRQRI7KH,VODQG$FDGHP\LVWRSURYLGHTXDOLW\HGXFDWLRQLQDQLQWLPDWHHQYLURQPHQWWKDWIRFXVHVRQWKHZKROHFKLOG\nVGHYHORSPHQWDQGSUHSDUHVWKHPIRUWKHLUIXWXUH1XUWXULQJ:HOO5RXQGHG,QGLYLGXDOV7KH,VODQG$FDGHP\IROORZVWKH%HOL]HDQHGXFDWLRQV\VWHPDQGKROGVRQDYHUDJHVWXGHQWVDJHVIRXUWR¿IWHHQWKDWDUHGLYLGHGLQWRWKUHHGLYLVLRQV/RZHU %HJLQQHUVWR,QIDQW,, 0LGGOH 6WDQGDUG,WR6WDQGDUG,,, DQG8SSHU 6WDQGDUG,9WR9, 7KH%HJLQQHU\nVFXUULFXOXPLVHTXLYDOHQWWRNLQGHUJDUWHQDQG6WDQGDUG9,LVWKHTXLYDOHQWWRJUDGH:LWKRQO\VL[FODVVURRPVWKHVWD\ruLVDEOHWRSURYLGHSUDFWLFDOOHDUQLQJRSSRUWXQLWLHVWRHQFRXUDJHVWXGHQWVWREHZHOOURXQGHGLQGLYLGXDOVZKRDUHVXFFHVVIXODFDGHPLFDOO\VRFLDOO\DQGHPRWLRQDOO\7KH,VODQG$FDGHP\XQGHUVWDQGVWKDWHGXFDWLRQLVPRUHWKDQPDWKDQGOLWHUDF\/HDUQLQJLVMXVWDVPXFKVRFLDODQGHPRWLRQDOGHYHORSPHQWDVDFDGHPLF,QRUGHUIRUVWXGHQWVWREHZHOOURXQGHGLQGLYLGXDOVWKHDFDGHP\UHTXLUHVWKHPWRSDUWLFLSDWHLQDYDULHW\RIDFWLYLWLHVWKDWHQFRXUDJHVRFLDOHPRWLRQDOOHDUQLQJ(YHU\GD\WKHVWXGHQWVJDWKHUDVDZKROHVFKRROIRU\n'URS(YHU\WKLQJDQG%UHDWKH\nDQLQLWLDWLYHVWDUWHGDIWHUWKHVWD\ru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nVZRUOGZKHUHWKHUHLVDORXGVRFLDOPHGLDSUHVHQFHDQGFKLOGUHQDUHIRUFHGWRQDYLJDWHXQNQRZQVLWXDWLRQVWKHDFDGHP\IRXQGLWLVHVVHQWLDOWRWHDFKWKHVHVNLOOVLQRUGHUIRULWVVWXGHQWVWRLPSURYHWKHLUPHQWDODQGHPRWLRQDOKHDOWK 4YVTEWWMSRJSVIHYGEXMSRERHXLIGSRWXERXIRGSYVEKIQIRXJVSQSYVWXEïLIPTWLETIXLIGLMPHVIRSJ8LI.WPERH&GEHIQ]MRXSGVMXMGEPXLMROIVWVIWTSRWMFPIGMXM^IRWERH]SYRKQIRERH[SQIR[MXLWXVSRKGSVIZEPYIW ŒÿáŸEF¾ÝŸ×¾Ýán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¿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¯ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU ¯ FRUHYDOXHVVXFKDVLQWHJULW\FRPSDVVLRQVHOIGLVFLSOLQHDQGUHVSRQVLELOLW\7KHPLVVLRQRI7KH,VODQG$FDGHP\LVWRSURYLGHTXDOLW\HGXFDWLRQLQDQLQWLPDWHHQYLURQPHQWWKDWIRFXVHVRQWKHZKROHFKLOG\nVGHYHORSPHQWDQGSUHSDUHVWKHPIRUWKHLUIXWXUH1XUWXULQJ:HOO5RXQGHG,QGLYLGXDOV7KH,VODQG$FDGHP\IROORZVWKH%HOL]HDQHGXFDWLRQV\VWHPDQGKROGVRQDYHUDJHVWXGHQWVDJHVIRXUWR¿IWHHQWKDWDUHGLYLGHGLQWRWKUHHGLYLVLRQV/RZHU %HJLQQHUVWR,QIDQW,, 0LGGOH 6WDQGDUG,WR6WDQGDUG,,, DQG8SSHU 6WDQGDUG,9WR9, 7KH%HJLQQHU\nVFXUULFXOXPLVHTXLYDOHQWWRNLQGHUJDUWHQDQG6WDQGDUG9,LVWKHTXLYDOHQWWRJUDGH:LWKRQO\VL[FODVVURRPVWKHVWD\ruLVDEOHWRSURYLGHSUDFWLFDOOHDUQLQJRSSRUWXQLWLHVWRHQFRXUDJHVWXGHQWVWREHZHOOURXQGHGLQGLYLGXDOVZKRDUHVXFFHVVIXODFDGHPLFDOO\VRFLDOO\DQGHPRWLRQDOO\7KH,VODQG$FDGHP\XQGHUVWDQGVWKDWHGXFDWLRQLVPRUHWKDQPDWKDQGOLWHUDF\/HDUQLQJLVMXVWDVPXFKVRFLDODQGHPRWLRQDOGHYHORSPHQWDVDFDGHPLF,QRUGHUIRUVWXGHQWVWREHZHOOURXQGHGLQGLYLGXDOVWKHDFDGHP\UHTXLUHVWKHPWRSDUWLFLSDWHLQDYDULHW\RIDFWLYLWLHVWKDWHQFRXUDJHVRFLDOHPRWLRQDOOHDUQLQJ(YHU\GD\WKHVWXGHQWVJDWKHUDVDZKROHVFKRROIRU\n'URS(YHU\WKLQJDQG%UHDWKH\nDQLQLWLDWLYHVWDUWHGDIWHUWKHVWD\ru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nVZRUOGZKHUHWKHUHLVDORXGVRFLDOPHGLDSUHVHQFHDQGFKLOGUHQDUHIRUFHGWRQDYLJDWHXQNQRZQVLWXDWLRQVWKHDFDGHP\IRXQGLWLVHVVHQWLDOWRWHDFKWKHVHVNLOOVLQRUGHUIRULWVVWXGHQWVWRLPSURYHWKHLUPHQWDODQGHPRWLRQDOKHDOWK 4YVTEWWMSRJSVIHYGEXMSRERHXLIGSRWXERXIRGSYVEKIQIRXJVSQSYVWXEïLIPTWLETIXLIGLMPHVIRSJ8LI.WPERH&GEHIQ]MRXSGVMXMGEPXLMROIVWVIWTSRWMFPIGMXM^IRWERH]SYRKQIRERH[SQIR[MXLWXVSRKGSVIZEPYIW ŒÿáŸEF¾ÝŸ×¾Ýán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¿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¯ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU ,QVWLOOLQJWKH6RFLDO9DOXHV7KH)RXQGHU/DG\'L[LH%RZHQIHHOVWKDWDFKLOGFDQKDYHDOORIWKHDFDGHPLFVSURYLGHGEXWLIWKH\GRQRWDFTXLUHWKHVRFLDOJUDFHVQHFHVVDU\WRHQJDJHLQSXEOLFVLWXDWLRQVWKHQVFKRROVDUHQRWWHDFKLQJWKHZKROHFKLOG(DFK:HGQHVGD\WKHVFKRROKRVWVD\n)RUPDO/XQFK\nIRUWKHVWXGHQWVDQGVWD\ru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¿GHQFHLQWKHVWXGHQWVLQDQRUPDOO\IULJKWHQLQJVLWXDWLRQ7KH,VODQG$FDGHP\DOXPVVKRZR\ruWKHLUFRQ¿GHQFHLQSXEOLFVSHDNLQJLQKLJKVFKRRODQGEH\RQG7KH,VODQG$FDGHP\VWXGHQWVDUHSLOODUVRIWKHFRPPXQLW\DQGSDUWDNHLQDYDULHW\RIH[WUDFXUULFXODUDFWLYLWLHVVXFKDVPDUWLDODUWVEDVNHWEDOOVRFFHU *\GIPPIRXGLSSPWMRXLI(EVMFFIER 1EH])M\MI'S[IR +SYRHIV8LI.WPERH&GEHIQ] ¯ 8LIQMWWMSRSJ8LI.WPERH&GEHIQ]MWXSTVSZMHIUYEPMX]IHYGEXMSRMRERMRXMQEXIIRZMVSRQIRXXLEXJSGYWIWSRXLI[LSPIGLMPH WHIZIPSTQIRXERHTVITEVIWXLIQJSVXLIMVJYXYVI ¯ DQGKRUVHEDFNULGLQJ7KHWDOHQWVDUHWKHQVKDUHGZLWKWKHLUFODVVPDWHV7KHDFDGHP\VXSSRUWVVWXGHQWV\nH[WUDFXUULFXODUDFWLYLWLHVE\IXQGUDLVLQJIRUXSFRPLQJWULSVRUFKHHULQJRQLWVWHDPVLQWRXUQDPHQWV7KHDFDGHP\H[SHFWVVWXGHQWVWREHUHVSHFWIXOLQDQGRXWRIVFKRRO7KH\DUHKHOGWRKLJKH[SHFWDWLRQVRIEHKDYLRUZKLOHUHSUHVHQWLQJWKHLUVFKRROLQWKHFRPPXQLW\*DLQLQJD%URDG8QGHUVWDQGLQJRIWKH:RUOG7KHVPDOOVFKRROHQYLURQPHQWRI7KH,VODQG$FDGHP\DOORZVWHDFKHUVWRGL\ruHUHQWLDWHOHDUQLQJEDVHGRQQHHGVDQGLQWHUHVWVZKLFKDOORZVVWXGHQWVWRWKULYHDQGSUHSDUHWKHPVHOYHVIRUWKHLUIXWXUH$VWKHZRUOGFRQWLQXHVWRJURZDQGFKDQJHZLWKHYHU\SDVVLQJ\HDUWKHDFDGHP\HQFRXUDJHVVWXGHQWVWRDSSUHFLDWHLQGLYLGXDOGL\ruHUHQFHVDQGJDLQDEURDGXQGHUVWDQGLQJRIWKHZRUOGDURXQGWKHP7KHVWXGHQWERG\DQGVWD\ruRI7KH,VODQG$FDGHP\DUHFRPSRVHGRISHRSOHIURPDFURVVWKHJOREH,WIRUPVVSHFLDOUHODWLRQVKLSVDQGWKURXJKWKRVHERQGVWKHDFDGHP\GLVFRYHUVWKDWHYHQZLWKWKHGL\ruHUHQFHVHYHU\RQHDWWKHDFDGHP\LVYHU\PXFKDOLNH7KHFXUULFXOXPDFKLHYHVERWKQDWLRQDODQGLQWHUQDWLRQDOVWDQGDUGVKRZHYHULWLVWKHGDLO\LQWHUDFWLRQVDQGDFWLYLWLHVWKDWIRUPVWXGHQWVLQWRYHUVDWLOHFXOWXUHGDQGUHVSHFWIXO\RXQJPHQDQGZRPHQZKROHDYH7KH,VODQG$FDGHP\UHDG\WRLQWHUDFWZLWKWKHLUFRPPXQLW\DQGWKHZRUOG7KHDFDGHP\LVSURXGRILWVDOXPVZKRDUHOLYLQJDQGWKULYLQJDFURVVWKHJOREH,WVSDVVLRQIRUHGXFDWLRQDQGWKHFRQVWDQWHQFRXUDJHPHQWIURPWKHVWD\ru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n)RUPDO/XQFK\nIRUWKHVWXGHQWVDQGVWD\ru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¿GHQFHLQWKHVWXGHQWVLQDQRUPDOO\IULJKWHQLQJVLWXDWLRQ7KH,VODQG$FDGHP\DOXPVVKRZR\ruWKHLUFRQ¿GHQFHLQSXEOLFVSHDNLQJLQKLJKVFKRRODQGEH\RQG7KH,VODQG$FDGHP\VWXGHQWVDUHSLOODUVRIWKHFRPPXQLW\DQGSDUWDNHLQDYDULHW\RIH[WUDFXUULFXODUDFWLYLWLHVVXFKDVPDUWLDODUWVEDVNHWEDOOVRFFHU *\GIPPIRXGLSSPWMRXLI(EVMFFIER 1EH])M\MI'S[IR +SYRHIV8LI.WPERH&GEHIQ] ¯ 8LIQMWWMSRSJ8LI.WPERH&GEHIQ]MWXSTVSZMHIUYEPMX]IHYGEXMSRMRERMRXMQEXIIRZMVSRQIRXXLEXJSGYWIWSRXLI[LSPIGLMPH WHIZIPSTQIRXERHTVITEVIWXLIQJSVXLIMVJYXYVI ¯ DQGKRUVHEDFNULGLQJ7KHWDOHQWVDUHWKHQVKDUHGZLWKWKHLUFODVVPDWHV7KHDFDGHP\VXSSRUWVVWXGHQWV\nH[WUDFXUULFXODUDFWLYLWLHVE\IXQGUDLVLQJIRUXSFRPLQJWULSVRUFKHHULQJRQLWVWHDPVLQWRXUQDPHQWV7KHDFDGHP\H[SHFWVVWXGHQWVWREHUHVSHFWIXOLQDQGRXWRIVFKRRO7KH\DUHKHOGWRKLJKH[SHFWDWLRQVRIEHKDYLRUZKLOHUHSUHVHQWLQJWKHLUVFKRROLQWKHFRPPXQLW\*DLQLQJD%URDG8QGHUVWDQGLQJRIWKH:RUOG7KHVPDOOVFKRROHQYLURQPHQWRI7KH,VODQG$FDGHP\DOORZVWHDFKHUVWRGL\ruHUHQWLDWHOHDUQLQJEDVHGRQQHHGVDQGLQWHUHVWVZKLFKDOORZVVWXGHQWVWRWKULYHDQGSUHSDUHWKHPVHOYHVIRUWKHLUIXWXUH$VWKHZRUOGFRQWLQXHVWRJURZDQGFKDQJHZLWKHYHU\SDVVLQJ\HDUWKHDFDGHP\HQFRXUDJHVVWXGHQWVWRDSSUHFLDWHLQGLYLGXDOGL\ruHUHQFHVDQGJDLQDEURDGXQGHUVWDQGLQJRIWKHZRUOGDURXQGWKHP7KHVWXGHQWERG\DQGVWD\ruRI7KH,VODQG$FDGHP\DUHFRPSRVHGRISHRSOHIURPDFURVVWKHJOREH,WIRUPVVSHFLDOUHODWLRQVKLSVDQGWKURXJKWKRVHERQGVWKHDFDGHP\GLVFRYHUVWKDWHYHQZLWKWKHGL\ruHUHQFHVHYHU\RQHDWWKHDFDGHP\LVYHU\PXFKDOLNH7KHFXUULFXOXPDFKLHYHVERWKQDWLRQDODQGLQWHUQDWLRQDOVWDQGDUGVKRZHYHULWLVWKHGDLO\LQWHUDFWLRQVDQGDFWLYLWLHVWKDWIRUPVWXGHQWVLQWRYHUVDWLOHFXOWXUHGDQGUHVSHFWIXO\RXQJPHQDQGZRPHQZKROHDYH7KH,VODQG$FDGHP\UHDG\WRLQWHUDFWZLWKWKHLUFRPPXQLW\DQGWKHZRUOG7KHDFDGHP\LVSURXGRILWVDOXPVZKRDUHOLYLQJDQGWKULYLQJDFURVVWKHJOREH,WVSDVVLRQIRUHGXFDWLRQDQGWKHFRQVWDQWHQFRXUDJHPHQWIURPWKHVWD\ruKHOSVVKDSHWKHFKLOGUHQRI7KH,VODQG$FDGHP\LQWRFULWLFDOWKLQNHUVUHVSRQVLEOHFLWL]HQVDQG\RXQJPHQDQGZRPHQZLWKVWURQJFRUHYDOXHV7KHPLVVLRQRI7KH,VODQG$FDGHP\LVWRSURYLGHSUDFWLFDOOLIHH[SHULHQFHVWRLWVVWXGHQWVVRWKDWWKH\EHFRPHDFWLYHDQGHVVHQWLDOPHPEHUVRIWKHFRPPXQLW\ ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU QWKHVWFHQWXU\WHFKQRORJ\KDVEHFRPHDQLQWHJUDOSDUWRIRXUGDLO\OLYHVUHYROXWLRQL]LQJWKHZD\ZHZRUNFRPPXQLFDWHDQGOHDUQ7KH&DULEEHDQOLNHWKHUHVWRIWKHZRUOGKDVH[SHULHQFHGVLJQL¿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ruHFWLYHHQYLURQPHQWDOO\IULHQGO\DQGFDQEHUHJXODUO\XSGDWHGWRDOLJQZLWKFXUULFXOXPFKDQJHV6WXGHQWVFDQDFFHVVWKHVHUHVRXUFHVRQWDEOHWVODSWRSVRUHYHQVPDUWSKRQHV,QWHUDFWLYH/HDUQLQJ7HFKQRORJ\DOORZVIRULQWHUDFWLYHOHDUQLQJH[SHULHQFHVWKURXJKHGXFDWLRQDODSSVPXOWLPHGLDSUHVHQWDWLRQVDQGYLUWXDOVLPXODWLRQV7KHVHWRROVPDNHOHDUQLQJHQJDJLQJDQGHQMR\DEOHFDWHULQJWRGL\ruHUHQWOHDUQLQJVW\OHVDQGDELOLWLHV%OHQGHG/HDUQLQJ%OHQGHGOHDUQLQJFRPELQHVWUDGLWLRQDOFODVVURRPLQVWUXFWLRQZLWKRQOLQHFRPSRQHQWV7KLVDSSURDFKSURYLGHVÀH[LELOLW\IRUVWXGHQWVWRDFFHVVFRQWHQWRXWVLGHRIVFKRROKRXUVZKLOHVWLOOEHQH¿WLQJIURPIDFHWRIDFHLQWHUDFWLRQVZLWKWHDFKHUVDQGSHHUV7HDFKHU3URIHVVLRQDO'HYHORSPHQW(\ruHFWLYHWHFKLQWHJUDWLRQUHTXLUHVZHOOWUDLQHGHGXFDWRUV3URIHVVLRQDOGHYHORSPHQWSURJUDPVDQGZRUNVKRSVDUHHVVHQWLDOWRHTXLSWHDFKHUVZLWKWKHVNLOOVWRXVHWHFKQRORJ\H\ruHFWLYHO\LQWKHLUWHDFKLQJSUDFWLFHV3HUVRQDOL]HG/HDUQLQJ7HFKQRORJ\HQDEOHVSHUVRQDOL]HGOHDUQLQJH[SHULHQFHVZKHUHVWXGHQWVFDQSURJUHVVDWWKHLURZQSDFHDQGUHFHLYHWDUJHWHGVXSSRUW$GDSWLYHOHDUQLQJSODWIRUPVDGMXVWFRQWHQWEDVHGRQLQGLYLGXDOSHUIRUPDQFHHQVXULQJWKDWQRVWXGHQWLVOHIWEHKLQG5IFZ}o}( d,E�KK'z JOdŒv(}Œu]vP Z/E oŒ}}udZ/všPŒŸ}v]vdZ]vPZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU QWKHVWFHQWXU\WHFKQRORJ\KDVEHFRPHDQLQWHJUDOSDUWRIRXUGDLO\OLYHVUHYROXWLRQL]LQJWKHZD\ZHZRUNFRPPXQLFDWHDQGOHDUQ7KH&DULEEHDQOLNHWKHUHVWRIWKHZRUOGKDVH[SHULHQFHGVLJQL¿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ruHFWLYHHQYLURQPHQWDOO\IULHQGO\DQGFDQEHUHJXODUO\XSGDWHGWRDOLJQZLWKFXUULFXOXPFKDQJHV6WXGHQWVFDQDFFHVVWKHVHUHVRXUFHVRQWDEOHWVODSWRSVRUHYHQVPDUWSKRQHV,QWHUDFWLYH/HDUQLQJ7HFKQRORJ\DOORZVIRULQWHUDFWLYHOHDUQLQJH[SHULHQFHVWKURXJKHGXFDWLRQDODSSVPXOWLPHGLDSUHVHQWDWLRQVDQGYLUWXDOVLPXODWLRQV7KHVHWRROVPDNHOHDUQLQJHQJDJLQJDQGHQMR\DEOHFDWHULQJWRGL\ruHUHQWOHDUQLQJVW\OHVDQGDELOLWLHV%OHQGHG/HDUQLQJ%OHQGHGOHDUQLQJFRPELQHVWUDGLWLRQDOFODVVURRPLQVWUXFWLRQZLWKRQOLQHFRPSRQHQWV7KLVDSSURDFKSURYLGHVÀH[LELOLW\IRUVWXGHQWVWRDFFHVVFRQWHQWRXWVLGHRIVFKRROKRXUVZKLOHVWLOOEHQH¿WLQJIURPIDFHWRIDFHLQWHUDFWLRQVZLWKWHDFKHUVDQGSHHUV7HDFKHU3URIHVVLRQDO'HYHORSPHQW(\ruHFWLYHWHFKLQWHJUDWLRQUHTXLUHVZHOOWUDLQHGHGXFDWRUV3URIHVVLRQDOGHYHORSPHQWSURJUDPVDQGZRUNVKRSVDUHHVVHQWLDOWRHTXLSWHDFKHUVZLWKWKHVNLOOVWRXVHWHFKQRORJ\H\ruHFWLYHO\LQWKHLUWHDFKLQJSUDFWLFHV3HUVRQDOL]HG/HDUQLQJ7HFKQRORJ\HQDEOHVSHUVRQDOL]HGOHDUQLQJH[SHULHQFHVZKHUHVWXGHQWVFDQSURJUHVVDWWKHLURZQSDFHDQGUHFHLYHWDUJHWHGVXSSRUW$GDSWLYHOHDUQLQJSODWIRUPVDGMXVWFRQWHQWEDVHGRQLQGLYLGXDOSHUIRUPDQFHHQVXULQJWKDWQRVWXGHQWLVOHIWEHKLQG5IFZ}o}( d,E�KK'z JOdŒv(}Œu]vP Z/E oŒ}}udZ/všPŒŸ}v]vdZ]vPZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU HGXFDWRUVWDLORUWKHLUWHDFKLQJVWUDWHJLHVWRPHHWLQGLYLGXDOVWXGHQWQHHGVH\ruHFWLYHO\&KDOOHQJHVDQG&RQVLGHUDWLRQV:KLOHWKHLQWHJUDWLRQRIWHFKQRORJ\LQ&DULEEHDQFODVVURRPVR\ruHUVQXPHURXVEHQH¿WVLWDOVRFRPHVZLWKFKDOOHQJHVDQGFRQVLGHUDWLRQV,QIUDVWUXFWXUH$FFHVVWRUHOLDEOHLQWHUQHWFRQQHFWLYLW\DQGQHFHVVDU\KDUGZDUHGHYLFHVUHPDLQVDFKDOOHQJHLQVRPH&DULEEHDQFRXQWULHV$GGUHVVLQJWKLVGLJLWDOGLYLGHLVFUXFLDOIRUHTXLWDEOHWHFKLQWHJUDWLRQ'LJLWDO/LWHUDF\%RWKVWXGHQWVDQGWHDFKHUVQHHGWRGHYHORSGLJLWDOOLWHUDF\VNLOOVWRQDYLJDWHRQOLQHUHVRXUFHVH\ruHFWLYHO\FULWLFDOO\HYDOXDWHLQIRUPDWLRQDQGSURWHFWWKHPVHOYHVRQOLQH&\EHUVHFXULW\:LWKLQFUHDVHGRQOLQHDFWLYLW\F\EHUVHFXULW\EHFRPHVDVLJQL¿FDQWFRQFHUQ6FKRROVPXVWSULRULWL]HGDWDSURWHFWLRQDQGRQOLQHVDIHW\7HDFKHU7UDLQLQJ$GHTXDWHWUDLQLQJDQGRQJRLQJSURIHVVLRQDOGHYHORSPHQWIRUWHDFKHUVDUHHVVHQWLDOWRPD[LPL]HWKHEHQH¿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¿HVWKHDVVHVVPHQWSURFHVVZLWKGLJLWDOTXL]]HVDVVLJQPHQWVDQGDXWRPDWHGJUDGLQJ7HDFKHUVFDQSURYLGHWLPHO\IHHGEDFNKHOSLQJVWXGHQWVXQGHUVWDQGWKHLUVWUHQJWKVDQGDUHDVIRULPSURYHPHQW(PHUJLQJ7UHQGVLQ7HFK,QWHJUDWLRQ$UWL¿FLDO,QWHOOLJHQFH $, LQ(GXFDWLRQ$,GULYHQHGXFDWLRQDOWRROVDUHEHFRPLQJPRUHSUHYDOHQWLQFODVVURRPVZRUOGZLGH7KHVHWHFKQRORJLHVFDQDGDSWWRLQGLYLGXDOOHDUQLQJVW\OHVR\ruHUSHUVRQDOL]HGUHFRPPHQGDWLRQVDQGLGHQWLI\DUHDVZKHUHVWXGHQWVPD\QHHGDGGLWLRQDOVXSSRUW,PSOHPHQWLQJ$,SRZHUHGV\VWHPVFDQIXUWKHUHQKDQFHWKHTXDOLW\RIHGXFDWLRQLQWKH&DULEEHDQ2QOLQH/HDUQLQJ3ODWIRUPV7KHJOREDOVKLIWWRZDUGVRQOLQHOHDUQLQJDFFHOHUDWHGE\WKH&29,'SDQGHPLFKDVKLJKOLJKWHGWKHLPSRUWDQFHRIUREXVWRQOLQHOHDUQLQJSODWIRUPV&DULEEHDQLQVWLWXWLRQVFDQOHYHUDJHWKHVHSODWIRUPVWRR\ruHUDEURDGHUUDQJHRIFRXUVHVDQGSURYLGHGLVWDQFHHGXFDWLRQRSWLRQVSDUWLFXODUO\IRUVWXGHQWVLQUHPRWHDUHDV9LUWXDO5HDOLW\ 95 DQG$XJPHQWHG5HDOLW\ $5 95DQG$5WHFKQRORJLHVDUHJDLQLQJWUDFWLRQLQHGXFDWLRQ7KH\SURYLGHLPPHUVLYHOHDUQLQJH[SHULHQFHVDOORZLQJVWXGHQWVWRH[SORUHKLVWRULFDOVLWHVFRQGXFWYLUWXDOH[SHULPHQWVRULQWHUDFWZLWK'PRGHOV,QWHJUDWLQJ95DQG$5LQWRWKHFXUULFXOXPFDQPDNHOHDUQLQJPRUHHQJDJLQJDQGPHPRUDEOH*DPL¿FDWLRQ*DPLI\LQJWKHOHDUQLQJSURFHVVLQYROYHVXVLQJJDPHHOHPHQWVDQGSULQFLSOHVWRHQKDQFHHGXFDWLRQ&DULEEHDQHGXFDWRUVFDQHPSOR\JDPL¿FDWLRQWHFKQLTXHVWRFUHDWHLQWHUDFWLYHDQGHQMR\DEOHOHVVRQVWKDWPRWLYDWHVWXGHQWVWRDFWLYHO\SDUWLFLSDWHLQWKHLUOHDUQLQJMRXUQH\'DWD'ULYHQ'HFLVLRQ0DNLQJ6FKRROVDUHLQFUHDVLQJO\XVLQJGDWDDQDO\WLFVWRDVVHVVVWXGHQWSHUIRUPDQFHLGHQWLI\DUHDVRILPSURYHPHQWDQGPDNHLQIRUPHGGHFLVLRQV7KLVGDWDGULYHQDSSURDFKKHOSV ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU HGXFDWRUVWDLORUWKHLUWHDFKLQJVWUDWHJLHVWRPHHWLQGLYLGXDOVWXGHQWQHHGVH\ruHFWLYHO\&KDOOHQJHVDQG&RQVLGHUDWLRQV:KLOHWKHLQWHJUDWLRQRIWHFKQRORJ\LQ&DULEEHDQFODVVURRPVR\ruHUVQXPHURXVEHQH¿WVLWDOVRFRPHVZLWKFKDOOHQJHVDQGFRQVLGHUDWLRQV,QIUDVWUXFWXUH$FFHVVWRUHOLDEOHLQWHUQHWFRQQHFWLYLW\DQGQHFHVVDU\KDUGZDUHGHYLFHVUHPDLQVDFKDOOHQJHLQVRPH&DULEEHDQFRXQWULHV$GGUHVVLQJWKLVGLJLWDOGLYLGHLVFUXFLDOIRUHTXLWDEOHWHFKLQWHJUDWLRQ'LJLWDO/LWHUDF\%RWKVWXGHQWVDQGWHDFKHUVQHHGWRGHYHORSGLJLWDOOLWHUDF\VNLOOVWRQDYLJDWHRQOLQHUHVRXUFHVH\ruHFWLYHO\FULWLFDOO\HYDOXDWHLQIRUPDWLRQDQGSURWHFWWKHPVHOYHVRQOLQH&\EHUVHFXULW\:LWKLQFUHDVHGRQOLQHDFWLYLW\F\EHUVHFXULW\EHFRPHVDVLJQL¿FDQWFRQFHUQ6FKRROVPXVWSULRULWL]HGDWDSURWHFWLRQDQGRQOLQHVDIHW\7HDFKHU7UDLQLQJ$GHTXDWHWUDLQLQJDQGRQJRLQJSURIHVVLRQDOGHYHORSPHQWIRUWHDFKHUVDUHHVVHQWLDOWRPD[LPL]HWKHEHQH¿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¿HVWKHDVVHVVPHQWSURFHVVZLWKGLJLWDOTXL]]HVDVVLJQPHQWVDQGDXWRPDWHGJUDGLQJ7HDFKHUVFDQSURYLGHWLPHO\IHHGEDFNKHOSLQJVWXGHQWVXQGHUVWDQGWKHLUVWUHQJWKVDQGDUHDVIRULPSURYHPHQW(PHUJLQJ7UHQGVLQ7HFK,QWHJUDWLRQ$UWL¿FLDO,QWHOOLJHQFH $, LQ(GXFDWLRQ$,GULYHQHGXFDWLRQDOWRROVDUHEHFRPLQJPRUHSUHYDOHQWLQFODVVURRPVZRUOGZLGH7KHVHWHFKQRORJLHVFDQDGDSWWRLQGLYLGXDOOHDUQLQJVW\OHVR\ruHUSHUVRQDOL]HGUHFRPPHQGDWLRQVDQGLGHQWLI\DUHDVZKHUHVWXGHQWVPD\QHHGDGGLWLRQDOVXSSRUW,PSOHPHQWLQJ$,SRZHUHGV\VWHPVFDQIXUWKHUHQKDQFHWKHTXDOLW\RIHGXFDWLRQLQWKH&DULEEHDQ2QOLQH/HDUQLQJ3ODWIRUPV7KHJOREDOVKLIWWRZDUGVRQOLQHOHDUQLQJDFFHOHUDWHGE\WKH&29,'SDQGHPLFKDVKLJKOLJKWHGWKHLPSRUWDQFHRIUREXVWRQOLQHOHDUQLQJSODWIRUPV&DULEEHDQLQVWLWXWLRQVFDQOHYHUDJHWKHVHSODWIRUPVWRR\ruHUDEURDGHUUDQJHRIFRXUVHVDQGSURYLGHGLVWDQFHHGXFDWLRQRSWLRQVSDUWLFXODUO\IRUVWXGHQWVLQUHPRWHDUHDV9LUWXDO5HDOLW\ 95 DQG$XJPHQWHG5HDOLW\ $5 95DQG$5WHFKQRORJLHVDUHJDLQLQJWUDFWLRQLQHGXFDWLRQ7KH\SURYLGHLPPHUVLYHOHDUQLQJH[SHULHQFHVDOORZLQJVWXGHQWVWRH[SORUHKLVWRULFDOVLWHVFRQGXFWYLUWXDOH[SHULPHQWVRULQWHUDFWZLWK'PRGHOV,QWHJUDWLQJ95DQG$5LQWRWKHFXUULFXOXPFDQPDNHOHDUQLQJPRUHHQJDJLQJDQGPHPRUDEOH*DPL¿FDWLRQ*DPLI\LQJWKHOHDUQLQJSURFHVVLQYROYHVXVLQJJDPHHOHPHQWVDQGSULQFLSOHVWRHQKDQFHHGXFDWLRQ&DULEEHDQHGXFDWRUVFDQHPSOR\JDPL¿FDWLRQWHFKQLTXHVWRFUHDWHLQWHUDFWLYHDQGHQMR\DEOHOHVVRQVWKDWPRWLYDWHVWXGHQWVWRDFWLYHO\SDUWLFLSDWHLQWKHLUOHDUQLQJMRXUQH\'DWD'ULYHQ'HFLVLRQ0DNLQJ6FKRROVDUHLQFUHDVLQJO\XVLQJGDWDDQDO\WLFVWRDVVHVVVWXGHQWSHUIRUPDQFHLGHQWLI\DUHDVRILPSURYHPHQWDQGPDNHLQIRUPHGGHFLVLRQV7KLVGDWDGULYHQDSSURDFKKHOSV ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU $ VSLULWXDOIRXQGDWLRQRIDQHGXFDWLRQDOLQVWLWXWHRIWHQSURPRWHVVWURQJPRUDODQGHWKLFDOYDOXHV7KHVHYDOXHVFDQJXLGHWKHEHKDYLRURIVWXGHQWVWHDFKHUVDQGVWD\ruIRVWHULQJDVHQVHRIKRQHVW\LQWHJULW\FRPSDVVLRQDQGUHVSHFWZLWKLQWKHHGXFDWLRQDOFRPPXQLW\7KLVLQWXUQFRQWULEXWHVWRWKHGHYHORSPHQWRIUHVSRQVLEOHDQGHPSDWKHWLFLQGLYLGXDOV7KHUHVRXQGLQJVXFFHVVDWWDLQHGE\WKH7ULQLGDG0XVOLP/HDJXH 70/ 3ULPDU\6FKRRO6DQ)HUQDQGRLVODUJHO\GXHWRLWVVWURQJVSLULWXDOIRXQGDWLRQDQGWKHFXOWXUHRIFRKHVLYHFROODERUDWLRQDQGVKDUHGUHVSRQVLELOLW\ZKLFKH[LVWVDPRQJLWVVWDNHKROGHUV02(±9LFWRULD(GXFDWLRQ'LVWULFW6XSHUYLVLRQ7ULQLGDG0XVOLP/HDJXH,QFSDUHQWVDQGWHDFKHUV70/6DQ)HUQDQGRKDVFRQWLQXHGWRH[FHOWRSSLQJWKHFRXQWU\\nV6HFRQGDU\(QWUDQFH$VVHVVPHQW([DPLQDWLRQVVL[WLPHVEHWZHHQDQGWLPHVLQWKHWRSSODFHVFRQVLVWHQWO\SODFLQJLQWKH7RS1DWLRQDO3ODFHPHQW/LVWZLWKWKHKLJKHVWQXPEHURIVWXGHQWVQDWLRQDOO\0RUHLPSRUWDQWO\70/6DQ)HUQDQGRFRQWLQXHVWREHDVDIHKDYHQIRULWVVWXGHQWVDQGVWD\ruDWDWLPHZKHQ7ULQLGDGDQG7REDJRH[SHULHQFHVWXUPRLOFDXVHGE\WKH&29,'SDQGHPLF$VDUHÀHFWLRQRIDZLGHUVRFLHW\70/6DQ)HUQDQGRLVQRWH[HPSWIURPWKHFKDOOHQJHVZKLFKDULVHIURPWKLVVRFLRHFRQRPLFLQVWDELOLW\VLPLODUWRZKDWH[LVWVLQPDQ\RWKHUVFKRROV+RZHYHULWKDVPDQDJHGWRRYHUFRPHFKDOOHQJHVEHFDXVHRIWKHFRKHVLYHVFKRROVWUXFWXUHLWKDVEXLOW9R\DJHWRD3ULPH(GXFDWLRQDO,QVWLWXWHWK2Q-DQXDU\WKH7ULQLGDG0XVOLP/HDJXHRSHQHGLWVGRRUVWRDFFRPPRGDWHVWXGHQWVDQGIRXUWHDFKHUVDWWKH0DVMLG+DOODW3ULQFH$OEHUW6WUHHW0U5R\-RVHSKWKHODWH3UHVLGHQW'U1RRU+DVVDQDOLDQGWKHWKHQVFKRROPDQDJHU0U0RKDPPHGDNRRE.KDQIRUPDOO\RSHQHGWKHVFKRRO7KH¿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nV6HFRQGDU\(QWUDQFH$VVHVVPHQW([DPLQDWLRQVVL[WLPHVEHWZHHQWRWLPHVLQWKHWRSSODFHVFRQVLVWHQWO\SODFLQJLQWKH7RS1DWLRQDO3ODFHPHQW/LVWZLWKWKHKLJKHVWQXPEHURIVWXGHQWVQDWLRQDOO\DQGWKH+LJKHVW1DWLRQDO$YHUDJHVLQWKHVXEMHFWDUHDV,WKDVDOVRDWWDLQHG¿UVWSODFHLQWKH1DWLRQDO&KHVV&KDPSLRQVKLSV1DWLRQDO6DQIHVW:LQQHUV%HVW3ULPDU\6FKRRO/DUJHVW&XE3DFN1DWLRQDOO\3UHVLGHQW¶V$ZDUGV/DUJHVW$UDELF&ODVV1DWLRQDOO\5HDGHUVRI$O4XUDQ1DWLRQDO6ZLPPLQJ&KDPSLRQ1DWLRQDO6SHOOLQJ2:785HG&URVV'LDEHWHV5HOLJLRXV.QRZOHGJHDQG(VVD\:ULWLQJ&RPSHWLWLRQV,QDELGWRSURYLGHKROLVWLFGHYHORSPHQWIRULWVVWXGHQWV70/6DQ)HUQDQGR6FKRROR\ruHUVDKRVWRIFRFXUULFXODUDFWLYLWLHVZKLFKLQFOXGHFULFNHWDQGIRRWEDOOVSRUWVWHDPVWKH70/&KHVV6WDUVWKH)LUVW6DQ)HUQDQGR70/&XE KµŒšÇšuŒµ‰šÁloÇvŒ]oÇoo}uu]©ZXdZ](}šŒšu}oo}ŒŸ}vvŒu}Àµ(Œ}ušZo}Œ]}µZ}Œ}(‰Zǐ]o.oo]vPvŒZ]À]vPX 7ULQLGDG 0XVOLP/HDJXH 70/  3ULPDU\6FKRRO6DQ)HUQDQGR/vŸoo]vPšZµošµŒ}(}Z]À}oo}ŒŸ}vv^ZŒZ‰}v]]o]šÇÆoovš^Z}}o]vŒ]vUîìîï ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ ZZZWKHNQRZOHGJHUHYLHZFRP _6HSWHPEHU $ VSLULWXDOIRXQGDWLRQRIDQHGXFDWLRQDOLQVWLWXWHRIWHQSURPRWHVVWURQJPRUDODQGHWKLFDOYDOXHV7KHVHYDOXHVFDQJXLGHWKHEHKDYLRURIVWXGHQWVWHDFKHUVDQGVWD\ruIRVWHULQJDVHQVHRIKRQHVW\LQWHJULW\FRPSDVVLRQDQGUHVSHFWZLWKLQWKHHGXFDWLRQDOFRPPXQLW\7KLVLQWXUQFRQWULEXWHVWRWKHGHYHORSPHQWRIUHVSRQVLEOHDQGHPSDWKHWLFLQGLYLGXDOV7KHUHVRXQGLQJVXFFHVVDWWDLQHGE\WKH7ULQLGDG0XVOLP/HDJXH 70/ 3ULPDU\6FKRRO6DQ)HUQDQGRLVODUJHO\GXHWRLWVVWURQJVSLULWXDOIRXQGDWLRQDQGWKHFXOWXUHRIFRKHVLYHFROODERUDWLRQDQGVKDUHGUHVSRQVLELOLW\ZKLFKH[LVWVDPRQJLWVVWDNHKROGHUV02(±9LFWRULD(GXFDWLRQ'LVWULFW6XSHUYLVLRQ7ULQLGDG0XVOLP/HDJXH,QFSDUHQWVDQGWHDFKHUV70/6DQ)HUQDQGRKDVFRQWLQXHGWRH[FHOWRSSLQJWKHFRXQWU\\nV6HFRQGDU\(QWUDQFH$VVHVVPHQW([DPLQDWLRQVVL[WLPHVEHWZHHQDQGWLPHVLQWKHWRSSODFHVFRQVLVWHQWO\SODFLQJLQWKH7RS1DWLRQDO3ODFHPHQW/LVWZLWKWKHKLJKHVWQXPEHURIVWXGHQWVQDWLRQDOO\0RUHLPSRUWDQWO\70/6DQ)HUQDQGRFRQWLQXHVWREHDVDIHKDYHQIRULWVVWXGHQWVDQGVWD\ruDWDWLPHZKHQ7ULQLGDGDQG7REDJRH[SHULHQFHVWXUPRLOFDXVHGE\WKH&29,'SDQGHPLF$VDUHÀHFWLRQRIDZLGHUVRFLHW\70/6DQ)HUQDQGRLVQRWH[HPSWIURPWKHFKDOOHQJHVZKLFKDULVHIURPWKLVVRFLRHFRQRPLFLQVWDELOLW\VLPLODUWRZKDWH[LVWVLQPDQ\RWKHUVFKRROV+RZHYHULWKDVPDQDJHGWRRYHUFRPHFKDOOHQJHVEHFDXVHRIWKHFRKHVLYHVFKRROVWUXFWXUHLWKDVEXLOW9R\DJHWRD3ULPH(GXFDWLRQDO,QVWLWXWHWK2Q-DQXDU\WKH7ULQLGDG0XVOLP/HDJXHRSHQHGLWVGRRUVWRDFFRPPRGDWHVWXGHQWVDQGIRXUWHDFKHUVDWWKH0DVMLG+DOODW3ULQFH$OEHUW6WUHHW0U5R\-RVHSKWKHODWH3UHVLGHQW'U1RRU+DVVDQDOLDQGWKHWKHQVFKRROPDQDJHU0U0RKDPPHGDNRRE.KDQIRUPDOO\RSHQHGWKHVFKRRO7KH¿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nV6HFRQGDU\(QWUDQFH$VVHVVPHQW([DPLQDWLRQVVL[WLPHVEHWZHHQWRWLPHVLQWKHWRSSODFHVFRQVLVWHQWO\SODFLQJLQWKH7RS1DWLRQDO3ODFHPHQW/LVWZLWKWKHKLJKHVWQXPEHURIVWXGHQWVQDWLRQDOO\DQGWKH+LJKHVW1DWLRQDO$YHUDJHVLQWKHVXEMHFWDUHDV,WKDVDOVRDWWDLQHG¿UVWSODFHLQWKH1DWLRQDO&KHVV&KDPSLRQVKLSV1DWLRQDO6DQIHVW:LQQHUV%HVW3ULPDU\6FKRRO/DUJHVW&XE3DFN1DWLRQDOO\3UHVLGHQW¶V$ZDUGV/DUJHVW$UDELF&ODVV1DWLRQDOO\5HDGHUVRI$O4XUDQ1DWLRQDO6ZLPPLQJ&KDPSLRQ1DWLRQDO6SHOOLQJ2:785HG&URVV'LDEHWHV5HOLJLRXV.QRZOHGJHDQG(VVD\:ULWLQJ&RPSHWLWLRQV,QDELGWRSURYLGHKROLVWLFGHYHORSPHQWIRULWVVWXGHQWV70/6DQ)HUQDQGR6FKRROR\ruHUVDKRVWRIFRFXUULFXODUDFWLYLWLHVZKLFKLQFOXGHFULFNHWDQGIRRWEDOOVSRUWVWHDPVWKH70/&KHVV6WDUVWKH)LUVW6DQ)HUQDQGR70/&XE KµŒšÇšuŒµ‰šÁloÇvŒ]oÇoo}uu]©ZXdZ](}šŒšu}oo}ŒŸ}vvŒu}Àµ(Œ}ušZo}Œ]}µZ}Œ}(‰Zǐ]o.oo]vPvŒZ]À]vPX 7ULQLGDG 0XVOLP/HDJXH 70/  3ULPDU\6FKRRO6DQ)HUQDQGR/vŸoo]vPšZµošµŒ}(}Z]À}oo}ŒŸ}vv^ZŒZ‰}v]]o]šÇÆoovš^Z}}o]vŒ]vUîìîï ZZZWKHNQRZOHGJHUHYLHZFRP6HSWHPEHU_ ZZZWKHNQRZOHGJHUHYLHZFRP _6HSWHPEHU 3DFNDQGWKH$UDELFFODVV$JURXSDQGWKHFRPPLWWHHKHDGVXSHUYLVHHDFKDFWLYLW\DQGDUHUHVSRQVLEOHIRUFKDUWLQJSURJUHVV7KHVHLQFOXGH‡5HG&URVV 0V$PHHQD$OL0V1DLOD6KDK 0V5HKDQD$OL1DJHH ‡(QYLURQPHQWDO&OXE +DPHHG6KDK ‡5HOLJLRXV*URXS 6DNHHQD$OL0RKDPPHG ‡$IWHUVFKRROVSRUWV1DZD]*D\ruDU6DOPD(ODKLH$OL 0V6DOLPD.KDQ6LUMXH‡,&7 ,PWLD]+RVHOQ 6D¿\\D$OL‡)LQDQFH)DULVVD$OL%DMQDWK 7UHDVXUHU,QWHUQDODXGLWRU ‡1XPHUDF\/HDG 0U,PVKD]+RVHLQ ‡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ÀRXULVKHGLQDQHQYLURQPHQWZKHUHLWVWLPXODWHVFUHDWLYHWKRXJKWDQGKRQHVRFLDOVNLOOVZKLFKZHUHLPSHGHGGXULQJWKHSDQGHPLF)URPDQHDUO\DJHLWHQFRXUDJHVVWXGHQWVWRH[SORUHKREELHV7KH\DUHHQFRXUDJHGWRH[SORUHDUWDQGFUDIWVKRUWVWRU\ZULWLQJSRHWU\GUDPDVLQJLQJPXVLFDOLQVWUXPHQWVDQGRWKHUWDOHQWV2QFHSURPLVLQJVWXGHQWVDUHLGHQWL¿HGLWH[SRVHVWKHPWRRSSRUWXQLWLHVWKDWFRXOGDVVLVWLQEXLOGLQJWKHLUWDOHQWV&XUUHQWO\70/6DQ)HUQDQGRLVLQWKHSURFHVVRIVHWWLQJXSDQDUHDZKHUHVWXGHQWVFDQVHWXSHDVHOVDQGSDLQWGXULQJWKHLUOHLVXUHWLPH7KLVH[SRVXUHWRH[WUDFXUULFXODUDFWLYLWLHVKDVDOORZHGLWWRFRSVHYHUDODZDUGVQDWLRQDOO\LQUHFHQWWLPHV(PEOHPRI6XSHULRULW\70/6DQ)HUQDQGRKDVUHFHLYHGQXPHURXVDZDUGVIRULWVLPSHFFDEOHGLVSOD\RYHUWKH\HDUV6RPHRIWKHUHFHQWDZDUGVLQFOXGH‡1*&&KLOGUHQ%RFDV/LW)HVWµ'UDJRQ]LOOD¶V6KRUW6WRU\:ULWLQJ&KDOOHQJH¶µ0\&29,'¶‡µ([SHULHQFHLQ7 7¶SODFHGLQWKHWRSQDWLRQDOO\‡,QWHUQDWLRQDO9LUWXDO*DOOHU\µ:H/RYH5HDGLQJ¶SUHVHQWDWLRQRQµ7KH6WDUV'R6KLQH¶VWSODFH1DWLRQDOO\‡2UDWRU\)RXQGDWLRQ :RUOG/HDGHUV0RGXOH 3RHPµ4XHHQ(OL]DEHWK¶SODFHGQGLQWKH3RHWU\DQGVWSODFHIRUWKH%HVW&RVWXPH‡&$5,&20(QHUJ\9LGHR&RPSHWLWLRQE\0LQLVWU\RI(QHUJ\DQG(QHUJ\,QGXVWULHVµ$5(VLOHQW¶‡µ&RPPXQLW\(QHUJ\DWWKH&HQWUH¶VWSODFHQDWLRQDOO\‡$UWE\'HVLJQVHOHFWHGDUWLVWVLQWKH7 7WRIHDWXUHLQWKH9LUWXDO(92/9(6WXGHQW$UW([KLELWLRQ RQHVWXGHQWZDVVHOHFWHG (QVXULQJ6PRRWK([HFXWLRQ7KHUHVRXQGLQJVXFFHVV70/6DQ)HUQDQGRKDVHQMR\HGRYHUWKHSDVW\HDUVLVODUJHO\GXHWRWKHVFKRRO¶VPDQDJHPHQWVWUXFWXUHZKLFKDOORZVVPRRWKH[HFXWLRQRI$FDGHPLFV/HDGHUVKLSDQG0DQDJHPHQW6SLULWXDOLW\DQG0DLQWHQDQFHRI6FKRRO$VVHWVDQG,QIUDVWUXFWXUH7KHVHLQFOXGHWKHIROORZLQJ‡7UDFNLQJVWXGHQWV¶UHFRUGV VHDWHUPO\WHVWV ‡7UDFNLQJWHDFKHUV\nUHFRUGV SHUIRUPDQFH ‡666'UHIHUUDOVDQGFRQFHVVLRQV‡*XLGDQFHR\rvFHU LQKRXVH ‡6SHFLDOHGXFDWLRQR\rvFHU LQKRXVH ‡6WXGHQWDLGHWHDFKHU¶VDLGH‡6WXGHQWV¶DWWHQGDQFH WUDFNLQJODWHDEVHQWHDUO\GHSDUWXUH ‡7HDFKHUV¶DWWHQGDQFH WUDFNLQJODWHDEVHQWWLPHR\ru ‡3DUHQWVPHHWLQJ FRQIHUHQFHSRFNHWPHHWLQJ37$ ‡7HFKQRORJ\ PXOWLPHGLDSURMHFWRUFRPSXWHUODE VKDUHG‡0HQWRULQJWHDFKHUV‡,QGLYLGXDOFODVVOLEUDULHV‡&ODVVSURMHFWV LQFODVVGLVSOD\VDQGSUHVHQWDWLRQV LQNHHSLQJZLWKWKHLQWHJUDWHGFXUULFXOXP70/6DQ)HUQDQGROHDGHUVKLSDQGPDQDJHPHQWVWUXFWXUHLQFOXGHV‡6KDUHGOHDGHUVKLSLQVWUXFWLRQDOOHDGHU‡/DWHUDOOHDGHUVKLS‡&RPPLWWHHV 6%7OLWHUDF\QXPHUDF\GLVFLSOLQHPDLQWHQDQFHVRFLDOHYHQWV ‡3URIHVVLRQDOOHDUQLQJFRPPXQLWLHV‡&OLQLFDOVXSHUYLVLRQFODVVFKHFNV‡&RPSHWLWLRQ ]RQDOUHJLRQDOLQWHUQDWLRQDO ‡(WKRVFXOWXUHRIWKHVFKRRO‡0HQWRULQJWHDFKHUV‡)LQDQFLDOWHDP FRPPLWWHHSURSHUUHFRUGVWUHDVXUHUDXGLWRU«SURSHUVLJQR\ruZLWKSURSHUUHFRUGV 7KUHHDVSHFWVRI70/6DQ)HUQDQGR0DQDJHPHQWVWUXFWXUH'LJLWL]DWLRQ6FKRROEDVHG0DQDJHPHQW7HDPDQG&OLQLFDO6XSHUYLVLRQ3HHU5HYLHZVZLOOEHRXWOLQHGLQJUHDWHUGHWDLOWRVKRZKRZWKH\FRQWULEXWHWRLWVRYHUDOOVXFFHVV8WLOL]LQJ7HFKQRORJLFDO$GYDQFHPHQW7KHGLJLWL]DWLRQRIHYHU\DVSHFWRI70/6DQ)HUQDQGR¶VRSHUDWLRQVLVODUJHO\UHVSRQVLEOHIRULWVVXFFHVV'DWDWUDFNLQJKHOSVWKHVFKRROWRH\ruHFWLYHO\DQDO\]HWKHVWUHQJWKVZHDNQHVVHVRSSRUWXQLWLHVDQGWKUHDWV,WVGDWDV\VWHPVDUHXSGDWHGZHHNO\DQGDUHDFFHVVLEOHE\DOOFRPPLWWHHKHDGV7KLVIRVWHUVWHDPFROODERUDWLRQDQGUHPRYHV70/6DQ)HUQDQGRIURPWKHODERULRXVFKRUHVRISK\VLFDO¿OOLQJDQGDUFKLYLQJ70/6DQ)HUQDQGR¶VGLJLWDOVXSSRUWV\VWHPVFRQWUROOHGE\0UV6D\rv\DDQG6LU,PWLD]WUDFNVWXGHQWDEVHQWHHLVPHDUO\GHSDUWXUHVDQGWKHOHDUQLQJFKDOOHQJHVRIHYHU\VWXGHQW(DFKFKLOGKDGDGDWDFKDUWWKDWDOORZHGWKHPWRPRQLWRUGHYHORSPHQWXWLOL]LQJDWWHQGDQFHVKHHWVH[DPUHSRUWFDUGVDQGDFDGHPLFWUDQVFULSWV%XWGLJLWL]HGGDWDV\VWHPJRHVEH\RQGVWXGHQWVHUYLFHVDQGPDQDJHPHQW,WDOVRLQFOXGHVDGLJLWL]HGV\VWHPIRUDFDGHPLFUROORXWLQFOXVLYHRIWKHFODVVV\OODEXVJXLGHOLQHVIRUWKH6FKRRO%DVHG0DQDJHPHQW7HDP 6%7 GLJLWL]HGVWRFNOLVWLQJIRUSK\VLFDOLQIUDVWUXFWXUHDQGVXSHUYLVRU\VXSSRUWV\VWHPVIRUVWD\ru7KHGDWDV\VWHPVDUHFHQWHUHGRQWULDQJXODUVXFFHVVGHYHORSPHQWRINQRZOHGJHVNLOOVDQGDWWLWXGH70/6DQ)HUQDQGRKDVDOVRXWLOL]HGLWVGLJLWDOV\VWHPVWRIDFLOLWDWHWKHSURIHVVLRQDOGHYHORSPHQWRIWHDFKHUV /v]š}‰Œ}À]Z}o]ŸÀo}‰uvš(}Œ}µŒšµvšUdD�^v&Œvv}^Z}}o}+ŒZ}š}(}rµŒŒ]µoŒŸÀ]ŸUÁZ]Z]voµŒ]lšv(}}šoo‰}ŒššuUšZdD�Z^šŒUšZ&]Œš^v&Œvv}dD�µWlUvŒ]oX ZZZWKHNQRZOHGJHUHYLHZFRP 6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU 3DFNDQGWKH$UDELFFODVV$JURXSDQGWKHFRPPLWWHHKHDGVXSHUYLVHHDFKDFWLYLW\DQGDUHUHVSRQVLEOHIRUFKDUWLQJSURJUHVV7KHVHLQFOXGH‡5HG&URVV 0V$PHHQD$OL0V1DLOD6KDK 0V5HKDQD$OL1DJHH ‡(QYLURQPHQWDO&OXE +DPHHG6KDK ‡5HOLJLRXV*URXS 6DNHHQD$OL0RKDPPHG ‡$IWHUVFKRROVSRUWV1DZD]*D\ruDU6DOPD(ODKLH$OL 0V6DOLPD.KDQ6LUMXH‡,&7 ,PWLD]+RVHOQ 6D¿\\D$OL‡)LQDQFH)DULVVD$OL%DMQDWK 7UHDVXUHU,QWHUQDODXGLWRU ‡1XPHUDF\/HDG 0U,PVKD]+RVHLQ ‡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ÀRXULVKHGLQDQHQYLURQPHQWZKHUHLWVWLPXODWHVFUHDWLYHWKRXJKWDQGKRQHVRFLDOVNLOOVZKLFKZHUHLPSHGHGGXULQJWKHSDQGHPLF)URPDQHDUO\DJHLWHQFRXUDJHVVWXGHQWVWRH[SORUHKREELHV7KH\DUHHQFRXUDJHGWRH[SORUHDUWDQGFUDIWVKRUWVWRU\ZULWLQJSRHWU\GUDPDVLQJLQJPXVLFDOLQVWUXPHQWVDQGRWKHUWDOHQWV2QFHSURPLVLQJVWXGHQWVDUHLGHQWL¿HGLWH[SRVHVWKHPWRRSSRUWXQLWLHVWKDWFRXOGDVVLVWLQEXLOGLQJWKHLUWDOHQWV&XUUHQWO\70/6DQ)HUQDQGRLVLQWKHSURFHVVRIVHWWLQJXSDQDUHDZKHUHVWXGHQWVFDQVHWXSHDVHOVDQGSDLQWGXULQJWKHLUOHLVXUHWLPH7KLVH[SRVXUHWRH[WUDFXUULFXODUDFWLYLWLHVKDVDOORZHGLWWRFRSVHYHUDODZDUGVQDWLRQDOO\LQUHFHQWWLPHV(PEOHPRI6XSHULRULW\70/6DQ)HUQDQGRKDVUHFHLYHGQXPHURXVDZDUGVIRULWVLPSHFFDEOHGLVSOD\RYHUWKH\HDUV6RPHRIWKHUHFHQWDZDUGVLQFOXGH‡1*&&KLOGUHQ%RFDV/LW)HVWµ'UDJRQ]LOOD¶V6KRUW6WRU\:ULWLQJ&KDOOHQJH¶µ0\&29,'¶‡µ([SHULHQFHLQ7 7¶SODFHGLQWKHWRSQDWLRQDOO\‡,QWHUQDWLRQDO9LUWXDO*DOOHU\µ:H/RYH5HDGLQJ¶SUHVHQWDWLRQRQµ7KH6WDUV'R6KLQH¶VWSODFH1DWLRQDOO\‡2UDWRU\)RXQGDWLRQ :RUOG/HDGHUV0RGXOH 3RHPµ4XHHQ(OL]DEHWK¶SODFHGQGLQWKH3RHWU\DQGVWSODFHIRUWKH%HVW&RVWXPH‡&$5,&20(QHUJ\9LGHR&RPSHWLWLRQE\0LQLVWU\RI(QHUJ\DQG(QHUJ\,QGXVWULHVµ$5(VLOHQW¶‡µ&RPPXQLW\(QHUJ\DWWKH&HQWUH¶VWSODFHQDWLRQDOO\‡$UWE\'HVLJQVHOHFWHGDUWLVWVLQWKH7 7WRIHDWXUHLQWKH9LUWXDO(92/9(6WXGHQW$UW([KLELWLRQ RQHVWXGHQWZDVVHOHFWHG (QVXULQJ6PRRWK([HFXWLRQ7KHUHVRXQGLQJVXFFHVV70/6DQ)HUQDQGRKDVHQMR\HGRYHUWKHSDVW\HDUVLVODUJHO\GXHWRWKHVFKRRO¶VPDQDJHPHQWVWUXFWXUHZKLFKDOORZVVPRRWKH[HFXWLRQRI$FDGHPLFV/HDGHUVKLSDQG0DQDJHPHQW6SLULWXDOLW\DQG0DLQWHQDQFHRI6FKRRO$VVHWVDQG,QIUDVWUXFWXUH7KHVHLQFOXGHWKHIROORZLQJ‡7UDFNLQJVWXGHQWV¶UHFRUGV VHDWHUPO\WHVWV ‡7UDFNLQJWHDFKHUV\nUHFRUGV SHUIRUPDQFH ‡666'UHIHUUDOVDQGFRQFHVVLRQV‡*XLGDQFHR\rvFHU LQKRXVH ‡6SHFLDOHGXFDWLRQR\rvFHU LQKRXVH ‡6WXGHQWDLGHWHDFKHU¶VDLGH‡6WXGHQWV¶DWWHQGDQFH WUDFNLQJODWHDEVHQWHDUO\GHSDUWXUH ‡7HDFKHUV¶DWWHQGDQFH WUDFNLQJODWHDEVHQWWLPHR\ru ‡3DUHQWVPHHWLQJ FRQIHUHQFHSRFNHWPHHWLQJ37$ ‡7HFKQRORJ\ PXOWLPHGLDSURMHFWRUFRPSXWHUODE VKDUHG‡0HQWRULQJWHDFKHUV‡,QGLYLGXDOFODVVOLEUDULHV‡&ODVVSURMHFWV LQFODVVGLVSOD\VDQGSUHVHQWDWLRQV LQNHHSLQJZLWKWKHLQWHJUDWHGFXUULFXOXP70/6DQ)HUQDQGROHDGHUVKLSDQGPDQDJHPHQWVWUXFWXUHLQFOXGHV‡6KDUHGOHDGHUVKLSLQVWUXFWLRQDOOHDGHU‡/DWHUDOOHDGHUVKLS‡&RPPLWWHHV 6%7OLWHUDF\QXPHUDF\GLVFLSOLQHPDLQWHQDQFHVRFLDOHYHQWV ‡3URIHVVLRQDOOHDUQLQJFRPPXQLWLHV‡&OLQLFDOVXSHUYLVLRQFODVVFKHFNV‡&RPSHWLWLRQ ]RQDOUHJLRQDOLQWHUQDWLRQDO ‡(WKRVFXOWXUHRIWKHVFKRRO‡0HQWRULQJWHDFKHUV‡)LQDQFLDOWHDP FRPPLWWHHSURSHUUHFRUGVWUHDVXUHUDXGLWRU«SURSHUVLJQR\ruZLWKSURSHUUHFRUGV 7KUHHDVSHFWVRI70/6DQ)HUQDQGR0DQDJHPHQWVWUXFWXUH'LJLWL]DWLRQ6FKRROEDVHG0DQDJHPHQW7HDPDQG&OLQLFDO6XSHUYLVLRQ3HHU5HYLHZVZLOOEHRXWOLQHGLQJUHDWHUGHWDLOWRVKRZKRZWKH\FRQWULEXWHWRLWVRYHUDOOVXFFHVV8WLOL]LQJ7HFKQRORJLFDO$GYDQFHPHQW7KHGLJLWL]DWLRQRIHYHU\DVSHFWRI70/6DQ)HUQDQGR¶VRSHUDWLRQVLVODUJHO\UHVSRQVLEOHIRULWVVXFFHVV'DWDWUDFNLQJKHOSVWKHVFKRROWRH\ruHFWLYHO\DQDO\]HWKHVWUHQJWKVZHDNQHVVHVRSSRUWXQLWLHVDQGWKUHDWV,WVGDWDV\VWHPVDUHXSGDWHGZHHNO\DQGDUHDFFHVVLEOHE\DOOFRPPLWWHHKHDGV7KLVIRVWHUVWHDPFROODERUDWLRQDQGUHPRYHV70/6DQ)HUQDQGRIURPWKHODERULRXVFKRUHVRISK\VLFDO¿OOLQJDQGDUFKLYLQJ70/6DQ)HUQDQGR¶VGLJLWDOVXSSRUWV\VWHPVFRQWUROOHGE\0UV6D\rv\DDQG6LU,PWLD]WUDFNVWXGHQWDEVHQWHHLVPHDUO\GHSDUWXUHVDQGWKHOHDUQLQJFKDOOHQJHVRIHYHU\VWXGHQW(DFKFKLOGKDGDGDWDFKDUWWKDWDOORZHGWKHPWRPRQLWRUGHYHORSPHQWXWLOL]LQJDWWHQGDQFHVKHHWVH[DPUHSRUWFDUGVDQGDFDGHPLFWUDQVFULSWV%XWGLJLWL]HGGDWDV\VWHPJRHVEH\RQGVWXGHQWVHUYLFHVDQGPDQDJHPHQW,WDOVRLQFOXGHVDGLJLWL]HGV\VWHPIRUDFDGHPLFUROORXWLQFOXVLYHRIWKHFODVVV\OODEXVJXLGHOLQHVIRUWKH6FKRRO%DVHG0DQDJHPHQW7HDP 6%7 GLJLWL]HGVWRFNOLVWLQJIRUSK\VLFDOLQIUDVWUXFWXUHDQGVXSHUYLVRU\VXSSRUWV\VWHPVIRUVWD\ru7KHGDWDV\VWHPVDUHFHQWHUHGRQWULDQJXODUVXFFHVVGHYHORSPHQWRINQRZOHGJHVNLOOVDQGDWWLWXGH70/6DQ)HUQDQGRKDVDOVRXWLOL]HGLWVGLJLWDOV\VWHPVWRIDFLOLWDWHWKHSURIHVVLRQDOGHYHORSPHQWRIWHDFKHUV /v]š}‰Œ}À]Z}o]ŸÀo}‰uvš(}Œ}µŒšµvšUdD�^v&Œvv}^Z}}o}+ŒZ}š}(}rµŒŒ]µoŒŸÀ]ŸUÁZ]Z]voµŒ]lšv(}}šoo‰}ŒššuUšZdD�Z^šŒUšZ&]Œš^v&Œvv}dD�µWlUvŒ]oX ZZZWKHNQRZOHGJHUHYLHZFRP 6HSWHPEHU_ZZZWKHNQRZOHGJHUHYLHZFRP_6HSWHPEHU