Reductive activation of arenes: XIX. Mechanism and some synthetic applications of the alkylation of phthalodinitrile radical anion

Article abstract of DOI:10.1134/S1070428006090053

Using cyclopropylmethyl bromide as mechanism-sensitive reagent, it was shown that the reaction of phthalonitrile radical anion with alkyl halides in liquid ammonia involves electron transfer. The effects of the nature of alkyl bromide and counterion in th

Full text of DOI:10.1134/S1070428006090053

5HGXFWLYHꢀ$FWLYDWLRQꢀRIꢀ$UHQHVꢁꢀꢀ
;,;ꢂꢃꢀ0HFKDQLVPꢀDQGꢀ6RPHꢀ6\QWKHWLFꢀ$SSOLFDWLRQVꢀ
RIꢀWKHꢀ$ON\ODWLRQꢀRIꢀ3KWKDORGLQLWULOHꢀ5DGLFDOꢀ$QLRQꢀꢀ
(ꢂꢀ9ꢂꢀ3DQWHOHHYD ꢄꢀꢀ7ꢂꢀ$ꢂꢀ9DJDQRYD ꢄꢀꢀ(ꢂꢀ$ꢂꢀ/XN¶\DQHWV ꢄꢀꢀDQGꢀꢀ9ꢂꢀ'ꢂꢀ6KWHLQJDUWV ꢀ
ꢀ9RUR]KWVRYꢀ1RYRVLELUVNꢀ,QVWLWXWHꢀRIꢀ2UJDQLFꢀ&KHPLVWU\ꢁꢀ6LEHULDQꢀ'LYLVLRQꢁꢀ5XVVLDQꢀ$FDGHP\ꢀRIꢀ6FLHQFHVꢁꢀꢀ
SUꢂꢀ$NDGHPLNDꢀ/DYUHQW¶HYDꢀꢃꢁꢀ1RYRVLELUVNꢁꢀꢄꢅꢆꢆꢃꢆꢀ5XVVLDꢀꢀ
HꢇPDLOꢈꢀVKWHLQ#QLRFKꢂQVFꢂUXꢀ
ꢀ1RYRVLELUVNꢀ6WDWHꢀ8QLYHUVLW\ꢁꢀXOꢂꢀ3LURJRYDꢀꢉꢁꢀ1RYRVLELUVNꢁꢀꢄꢅꢆꢆꢃꢆꢀ5XVVLDꢀꢀ
ꢀ³5HVHDUFKꢀ,QVWLWXWHꢀRIꢀ2UJDQLFꢀ,QWHUPHGLDWHꢀ3URGXFWVꢀDQGꢀ'\HV´ꢀ6WDWHꢀ5HVHDUFKꢀ&HQWHUꢁꢀ0RVFRZꢁꢀ5XVVLDꢀ
5HFHLYHGꢄ'HFHPEHUꢄꢅꢆꢄꢁꢃꢃꢅꢄ
$EVWUDFW²8VLQJꢄF\FORSURS\OPHWK\OꢄEURPLGHꢄDVꢄPHFKDQLVPꢇVHQVLWLYHꢄUHDJHQWꢆꢄLWꢄZDVꢄVKRZQꢄWKDWꢄWKHꢄUHDFWLRQꢄ
RIꢄSKWKDORQLWULOHꢄUDGLFDOꢄDQLRQꢄZLWKꢄDON\OꢄKDOLGHVꢄLQꢄOLTXLGꢄDPPRQLDꢄLQYROYHVꢄHOHFWURQꢄWUDQVIHUꢈꢄ7KHꢄHIIHFWVꢄRIꢄWKHꢄ
QDWXUHꢄRIꢄDON\OꢄEURPLGHꢄDQGꢄFRXQWHULRQꢄLQꢄWKHꢄUDGLFDOꢄDQLRQꢄVDOWꢄDQGꢄUHDFWLRQꢄFRQGLWLRQVꢄRQꢄWKHꢄUDWLRꢄRIꢄꢁꢇDON\Oꢇ
EHQ]RQLWULOHꢆꢄꢅꢇDON\OSKWKDORQLWULOHꢆꢄDQGꢄꢁꢆꢉꢇGLDON\OEHQ]RQLWULOHꢄZHUHꢄVWXGLHGꢈꢄ3KWKDORGLQLWULOHꢄUDGLFDOꢄDQLRQꢄZDVꢄ
IRXQGꢄWRꢄXQGHUJRꢄGLPHUL]DWLRQꢄZLWKꢄIRUPDWLRQꢄRIꢄELSKHQ\OꢇꢁꢆꢊꢋꢆꢅꢋꢇWULFDUERQLWULOHꢈꢄ7KHꢄH[DPLQHGꢄWUDQVIRUPDWLRQVꢄ
PD\ꢄXQGHUOLHꢄV\QWKHVHVꢄRIꢄSKWKDORQLWULOHVꢄPRGLILHGꢄDWꢄWKHꢄꢅꢇSRVLWLRQꢈꢄ
'2,ꢁꢄꢀꢃꢈꢀꢀꢊꢅꢏ6ꢀꢃꢐꢃꢅꢁꢂꢃꢃꢑꢃꢒꢃꢃꢉꢊꢄ
:Hꢄ SUHYLRXVO\ꢄ VKRZHGꢄ>ꢁ@ꢄWKDWꢄ WKHꢄ DON\ODWLRQꢄ RIꢄ
SKWKDORQLWULOHꢄUDGLFDOꢄDQLRQꢄꢍ,,ꢎꢄ>ZKLFKꢄLVꢄJHQHUDWHGꢄE\ꢄ
WKHꢄDFWLRQꢄRIꢄPHWDOOLFꢄSRWDVVLXPꢄRQꢄSKWKDORQLWULOHꢄ,ꢄLQꢄ
OLTXLGꢄDPPRQLDꢄ YLDꢄVLQJOHꢇHOHFWURQꢄWUDQVIHU@ꢄ ZLWKꢄ
EXW\Oꢆꢄ VHFꢇEXW\Oꢆꢄ DQGꢄ WHUWꢇEXW\Oꢄ EURPLGHVꢄ DQGꢄ LRGLGHVꢄ
JLYHVꢄSURGXFWVꢄFRUUHVSRQGLQJꢄWRꢄUHSODFHPHQWꢄLQꢄWKHꢄ
LQLWLDOꢄ GLQLWULOHꢄ RIꢄ RQHꢄ F\DQRꢄ JURXSꢄ ꢍꢁꢇDON\OEHQ]Rꢇ
QLWULOHVꢄ ,,,ꢎꢆꢄ K\GURJHQꢄ DWRPꢄ ꢍꢅꢇDON\OSKWKDORQLWULOHVꢄ
,9ꢎꢆꢄDQGꢄERWKꢄWKHVHꢄꢍꢁꢆꢉꢇGLDON\OEHQ]RQLWULOHVꢄ9ꢎꢈꢄ&RPꢇ
SRXQGVꢄ,9ꢄ DQGꢄ 9ꢄ DUHꢄ IRUPHGꢄ IURPꢄ WKHꢄ VDPHꢄ DQLRQLFꢄ
SUHFXUVRUꢄꢍ6FKHPHꢄ ꢀꢎꢆꢄ DQGꢄ WKHLUꢄ UDWLRꢄ GHSHQGVꢄ RQꢄ WKHꢄ
QDWXUHꢄRIꢄWKHꢄKDORJHQꢄDWRPꢄDQGꢄVWUXFWXUHꢄRIꢄWKHꢄDON\Oꢄ
IUDJPHQWꢈꢄ7KHꢄIRUPDWLRQꢄRIꢄSURGXFWVꢄ,9ꢄDQGꢄ9ꢄDQGꢄWKHꢄ
ZHDNꢄGHSHQGHQFHꢄRIꢄWKHꢄVLWHꢄRIꢄDON\ODWLRQꢄRQꢄWKHꢄDON\Oꢄ
KDOLGHꢄ VWUXFWXUHꢄ ZHUHꢄ UDWLRQDOL]HGꢄ DVVXPLQJꢄ WKDWꢄ WKHꢄ
UHDFWLRQꢄPHFKDQLVPꢄLQYROYHVꢄHOHFWURQꢄWUDQVIHUꢄꢍ(7ꢎꢄ
IURPꢄ UDGLFDOꢄ DQLRQꢄ ,,ꢄ WRꢄ DON\Oꢄ KDOLGHꢆꢄ IROORZHGꢄ E\ꢄ
FRPELQDWLRQꢄRIꢄWKHꢄUHVXOWLQJꢄDON\OꢄUDGLFDOꢄZLWKꢄDQRWKHUꢄ
UDGLFDOꢄDQLRQꢄ,,ꢄVSHFLHVꢈꢄꢄ
SKWKDORF\DQLQHꢇEDVHGꢄG\HVꢄDQGꢄSLJPHQWVꢄKDVꢄUHFHQWO\ꢄ
LQFUHDVHGꢄWRꢄDQꢄDSSUHFLDEOHꢄH[WHQWꢄGXHꢄWRꢄDSSHDUDQFHꢄRIꢄ
QHZꢄILHOGVꢄRIꢄWKHLUꢄSRVVLEOHꢄDSSOLFDWLRQꢄLQꢄWHFKQLFVꢄ>ꢅ@ꢄ
DQGꢄPHGLFLQHꢄ>ꢉ@ꢈꢄ,QVRIDUꢄDVꢄWKHꢄUHDFWLRQꢄXQGHUꢄVWXG\ꢄ
SURYLGHVꢄ WKHꢄ VKRUWHVWꢄ V\QWKHWLFꢄ URXWHꢄ WRꢄ VXFKꢄ FRPꢇ
SRXQGVꢆꢄZHꢄEHOLHYHGꢄLWꢄZRUWKZKLOHꢄWRꢄVWXG\ꢄLQꢄGHWDLOꢄLWVꢄ
PHFKDQLVPꢄ DQGꢄ HVWLPDWHꢄ WKHꢄ SRVVLELOLW\ꢄ RIꢄ XVLQJꢄ WKLVꢄ
UHDFWLRQꢄDVꢄJHQHUDOꢄDSSURDFKꢄWRꢄSKWKDORQLWULOHVꢄDQGꢄ
EHQ]RQLWULOHVꢄ KDYLQJꢄ DON\Oꢄ DQGꢄ PRGLILHGꢄ DON\Oꢄ VXEꢇ
VWLWXHQWVꢈꢄꢄ
7KHUHIRUHꢆꢄWKHꢄSUHVHQWꢄZRUNꢄZDVꢄDLPHGꢄDWꢄVXEꢇ
VWDQWLDWLQJꢄWKHꢄSURSRVHGꢄPHFKDQLVPꢄRIꢄDON\ODWLRQꢄRIꢄ
UDGLFDOꢄ DQLRQꢄ ,,ꢄ RQꢄ WKHꢄ EDVLVꢄ RIꢄ H[SHULPHQWDOꢄ GDWDꢆꢄ
HOXFLGDWLQJꢄ WKHꢄ SRVVLELOLW\ꢄ IRUꢄ H[WHQGLQJꢄ VWUXFWXUDOꢄ
GLYHUVLW\ꢄRIꢄDON\ODWLQJꢄDJHQWVꢆꢄDQGꢄV\QWKHVL]LQJꢄVXEVWLꢇ
WXWHGꢄ EHQ]RQLWULOHVꢄ DQGꢄ SKWKDORQLWULOHVꢄ PRVWꢄ RIꢄ ZKLFKꢄ
ꢍZLWKꢄDꢄIHZꢄH[FHSWLRQVꢆꢄVHHꢄEHORZꢎꢄZHUHꢄQRWꢄUHSRUWHGꢄ
SUHYLRXVO\ꢈꢄꢄ
,QꢄRUGHUꢄWRꢄREWDLQꢄH[SHULPHQWDOꢄSURRIVꢄIRUꢄ(7ꢄPHFKꢇ
DQLVPꢄLQꢄWKHꢄDON\ODWLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄZHꢄXVHGꢄ
F\FORSURS\OPHWK\Oꢄ EURPLGHꢄ DVꢄ UDGLFDOꢇFORFNꢄ WHVWLQJꢄ
UHDJHQWꢈꢄ 6LQJOHꢇHOHFWURQꢄ WUDQVIHUꢄ UHGXFWLRQꢄ RIꢄ F\FORꢇ
SURS\OPHWK\OꢄEURPLGHꢄJLYHVꢄF\FORSURS\OPHWK\OꢄUDGLFDOꢄ
Z KLFKꢄ TXLFNO\ꢄ LVRPHUL]HVꢄLQWRꢄ ꢊꢇEXWHQ\Oꢄ UDGLFDOꢄꢍN ꢄ ꢄ
$QDO\VLVꢄRIꢄWKHꢄUHVXOWVꢄRIꢄDON\ODWLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ
,,ꢄIURPꢄWKHꢄYLHZSRLQWꢄRIꢄWKHLUꢄV\QWKHWLFꢄXWLOLW\ꢄOHGꢄXVꢄWRꢄ
SUHVXPHꢄ WKDWꢄ ꢅꢇDON\OSKWKDORQLWULOHVꢄ DUHꢄ SRWHQWLDOꢄ SUHꢇ
FXUVRUVꢄRIꢄPRGLILHGꢄSKWKDORF\DQLQHVꢄ>ꢊ@ꢈꢄ,QWHUHVWꢄLQꢄ
ꢌꢄ )RUꢄFRPPXQLFDWLRQꢄ;9,,,ꢆꢄVHHꢄ>ꢀ@ꢈꢄ
ꢀꢁꢂꢃꢄ

5('8&7,9(ꢄꢄ$&7,9$7,21ꢄꢄ2)ꢄꢄ$5(1(6ꢓꢄꢄ;,;ꢈꢄꢄ
ꢀꢁꢂꢀꢄ
6FKHPHꢀꢅꢂꢀ
5ꢄ ꢄF\FORꢇ& + &+ ꢄꢍDꢎꢆꢄ&+ &+ꢍ&+ ꢎ ꢄꢍEꢎꢆꢄ& + ꢄꢍFꢎꢆꢄ&+ &+ꢍ&+ ꢎ ꢄꢍGꢎꢆꢄ& + ꢄꢍHꢎꢔꢄ0ꢄ ꢄ.ꢆꢄ1Dꢈꢄ
ꢅꢈꢂîꢀꢃ ꢄV ꢄDWꢄ±ꢊꢊƒ&ꢄ>ꢑ@ꢎꢈꢄ,IꢄUDGLFDOꢄDQLRQꢄ,,ꢄLVꢄSUHVHQWꢄ ,,,Dꢄ DQGꢄ ,9Dꢆꢄ ZHUHꢄ LVRODWHGꢄ DVꢄ LQGLYLGXDOꢄ VXEVWDQFHVꢄ
LQꢄ WKHꢄ UHDFWLRQꢄ V\VWHPꢆꢄ WKHꢄ LVRPHUL]DWLRQꢄ RIꢄ F\FORꢇ
SURS\OPHWK\OꢄUDGLFDOꢄFRPSHWHVꢄZLWKꢄLWVꢄFRPELQDWLRQꢄ
ZLWKꢄUDGLFDOꢄDQLRQꢄ,,ꢄꢍNꢄ§ꢄꢀꢃ ꢄPROꢄO ꢄV ꢄ>ꢐ@ꢎꢈꢄ2QꢄWKHꢄ
RWKHUꢄ KDQGꢆꢄ ꢊꢇEXWHQ\Oꢄ UDGLFDOꢄ IRUPHGꢄ DVꢄ Dꢄ UHVXOWꢄ RIꢄ
LVRPHUL]DWLRQꢄDOVRꢄUHDFWVꢄZLWKꢄ,,ꢈꢄ7KHUHIRUHꢆꢄZHꢄVKRXOGꢄ
H[SHFWꢄIRUPDWLRQꢄRIꢄLVRPHULFꢄSURGXFWVꢄKDYLQJꢄQRQLVRꢇ
PHUL]HGꢄF\FORSURS\OPHWK\OꢄIUDJPHQWꢄꢍQꢄSURGXFWVꢎꢄDQGꢄ
LVRPHUL]HGꢄ ꢊꢇEXWHQ\Oꢄ IUDJPHQWꢄ ꢍLꢄ SURGXFWVꢎꢄ ꢍFIꢈꢄ >ꢂ@ꢎꢆꢄ
ZKRVHꢄUDWLRꢄQꢏLꢄGHSHQGVꢄRQꢄWKHꢄUDWLRꢄRIꢄWKHꢄUDWHVꢄRIꢄ
LVRPHUL]DWLRQꢄ RIꢄ F\FORSURS\OPHWK\Oꢄ UDGLFDOꢄ DQGꢄ LWVꢄ
FRPELQDWLRQꢄ ZLWKꢄUDGLFDOꢄDQLRQꢄ,,ꢄꢍ6FKHPHꢄ ꢁꢎꢈꢄ ,Iꢄ WKHꢄ
UHDFWLRQꢄXQGHUꢄVWXG\ꢄIROORZVꢄQXFOHRSKLOLFꢄVXEVWLWXWLRQꢄ
PHFKDQLVPꢄꢍ6 ꢎꢆꢄWKHꢄSURGXFWVꢄVKRXOGꢄFRQWDLQꢄRQO\ꢄ
F\FORSURS\OPHWK\OꢄIUDJPHQWꢈꢄ
DQGꢄ ZHUHꢄ FKDUDFWHUL]HGꢄ E\ꢄ +ꢄ 105ꢆꢄ ,5ꢆꢄ DQGꢄ KLJKꢇ
UHVROXWLRQꢄ PDVVꢄ VSHFWUDꢈꢄ &RPSRXQGVꢄ ,,,Eꢄ DQGꢀ ,9Eꢄ
ZLWKꢀLVRPHUL]HGꢄDON\OꢄIUDJPHQWꢄZHUHꢄLVRODWHGꢄRQO\ꢄDVꢄ
PL[WXUHVꢄZLWKꢄLVRPHUVꢄ,,,DꢄDQGꢄ,9DꢆꢄUHVSHFWLYHO\ꢈꢄ
$QDO\VLVꢄRIꢄWKHVHꢄPL[WXUHVꢄE\ꢄJDVꢄFKURPDWRJUDSK\±
PDVVꢄVSHFWURPHWU\ꢄVKRZHGꢄWKHꢄSUHVHQFHꢄRIꢄFRPSRQHQWVꢄ
ZLWKꢄWKHꢄPROHFXODUꢄZHLJKWVꢄꢀꢉꢐꢄDQGꢄꢀꢂꢁꢆꢄZKLFKꢄFRUUHꢇ
VSRQGꢄWRꢄFRPSRXQGVꢄ,,,Dꢆꢄ,,,EꢄDQGꢄ,9Dꢆꢄ,9EꢆꢄUHVSHFꢇ
WLYHO\ꢈꢄ6LJQDOVꢄLQꢄWKHꢄ +ꢄ105ꢄVSHFWUDꢄRIꢄQLWULOHVꢄ,,,Dꢆꢄ
,,,Eꢆꢄ,9DꢆꢄDQGꢄ,9EꢄꢍVHHꢄ([SHULPHQWDOꢎꢄZHUHꢄDVVLJQHGꢄ
E\ꢄFRPSDULVRQꢄZLWKꢄWKHꢄVSHFWUDꢄRIꢄEXW\OꢇVXEVWLWXWHGꢄ
DQDORJVꢄ>ꢁ@ꢈꢄ7KHꢄF\FORSURS\OPHWK\OꢄIUDJPHQWꢄLQꢄPROHꢇ
FXOHVꢄ ,,,DꢄDQGꢄ ,9Dꢄ JLYHVꢄ ULVHꢄWRꢄDꢄ GRXEOHWꢄ DWꢄ ꢄꢁꢈꢉꢃ±
ꢁꢈꢂꢃꢄSSPꢄIURPꢄWZRꢄSURWRQVꢄRIꢄWKHꢄ ꢇPHWK\OHQHꢄJURXSꢆꢄ
Dꢄ PXOWLSOHWꢄ DWꢄ ꢄ ꢃꢈꢑꢃ±ꢀꢈꢁꢃꢄ SSPꢄ IURPꢄ WKHꢄ &+ꢄ SURWRQꢆꢄ
DQGꢄ WZRꢄ PXOWLSOHWVꢄ LQꢄ WKHꢄ UHJLRQVꢄ ꢄ ꢃꢈꢀꢃ±ꢃꢈꢊꢃꢄ DQGꢄ
ꢃꢈꢊꢃ±ꢃꢈꢑꢃꢄSSPꢄIURPꢄ PHWK\OHQHꢄSURWRQVꢄLQꢄWKHꢄF\FORꢇ
SURSDQHꢄULQJꢈꢄ&RPSRXQGVꢄ,,,EꢄDQGꢄ,9EꢄVKRZHGꢄLQꢄWKHꢄ
+ꢄ105ꢄVSHFWUDꢄWKHꢄIROORZLQJꢄVLJQDOVꢄIURPꢄWKHꢄEXWꢇꢊꢇ
HQꢇꢀꢇ\OꢄIUDJPHQWꢓꢄDꢄPXOWLSOHWꢄDWꢄ ꢄꢉꢈꢑꢃ±ꢑꢈꢐꢃꢄSSPꢄIURPꢄ
WKHꢄ&+ ꢄSURWRQꢆꢄDꢄꢁ+ꢇPXWLSOHWꢄDWꢄ ꢄꢅꢈꢂꢃ±ꢉꢈꢃꢃꢄSSPꢄ
IURPꢄWKHꢄ&+ ꢄSURWRQVꢆꢄDꢄTXDUWHWꢄDWꢄ ꢄꢁꢈꢅꢊꢄSSPꢄIURPꢄ
:HꢄKDYHꢄIRXQGꢄWKDWꢄUDGLFDOꢄDQLRQꢄ,,ꢄZLWKꢄSRWDVVLXPꢄ
DVꢄ FRXQWHULRQꢄ UHDFWVꢄ ZLWKꢄ F\FORSURS\OPHWK\Oꢄ EURPLGHꢄ
LQꢄOLTXLGꢄDPPRQLDꢄWRꢄJLYHꢄSURGXFWVꢄZLWKꢄERWKꢄQRQLVRꢇ
PHUL]HGꢄ>ꢁꢇꢍF\FORSURS\OPHWK\OꢎEHQ]RQLWULOHꢄꢍ,,,DꢎꢄDQGꢄ
ꢅꢇꢍF\FORSURS\OPHWK\OꢎSKWKDORQLWULOHꢄ ꢍ,9Dꢎ@ꢄ DQGꢄ LVRꢇ
PHUL]HGꢄDON\OꢄIUDJPHQWVꢄ>ꢁꢇꢍEXWꢇꢊꢇHQꢇꢀꢇ\OꢎEHQ]RQLWULOHꢄ
ꢍ,,,Eꢎꢄ DQGꢄ ꢅꢇꢍEXWꢇꢊꢇHQꢇꢀꢇ\OꢎSKWKDORQLWULOHꢄ ꢍ,9Eꢎ@ꢄ ꢍUXQꢄ
QRVꢈꢄꢀꢆꢄꢁꢔꢄ7DEOHꢄꢀꢎꢈꢄ7KHꢄSURGXFWVꢄKDYLQJꢄDꢄF\FORSURS\Oꢇ
PHWK\OꢄVXEVWLWXHQWꢆꢄSUHYLRXVO\ꢄXQNQRZQꢄFRPSRXQGVꢄꢄ WKHꢄ&+ ꢄJURXSꢄLQꢄWKHꢄ ꢇSRVLWLRQꢄZLWKꢄUHVSHFWꢄWRꢄWKHꢄ
6FKHPHꢀꢆꢂꢀ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

3$17(/((9$ꢄꢄHWꢄDOꢈꢄ
ꢀꢁꢂꢁꢄ
7DEOHꢀꢅꢂꢄ5HDFWLRQVꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄZLWKꢄDON\OꢄKDOLGHVꢄLQꢄOLTXLGꢄDPPRQLDꢄ
$PRXQWVꢄRIꢄUHDFWDQWVꢆꢄPPROꢄ
3URGXFWꢄFRPSRVLWLRQꢆꢄPPROꢄꢍ\LHOGꢆꢄPROꢄOꢎ
ꢄ
5XQꢄ
QRꢈꢄ
,,ꢆꢄ 7LPHꢆꢄ
PROꢏOꢄ Kꢄ
PHWDOꢄ
DON\OꢄKDOLGHꢄ
,ꢄ
,ꢄ
,,,ꢄ
,9ꢄ
9ꢄ
9,ꢄ
ꢀꢄ
ꢁꢄ
ꢃꢉꢈꢀꢄ .ꢆꢄꢉꢈꢃꢄ &\FORSURS\OPHWK\OꢄEURPLGHꢆꢄ ꢃꢈꢀꢃꢃꢄ ꢀꢄ ꢁꢈꢅꢐꢄ Dꢓꢄꢃꢈꢒꢑꢄꢍꢊꢂꢎꢆꢄ Dꢓꢄꢃꢈꢅꢁꢄꢍꢀꢐꢎꢆꢄ
ꢁꢈꢉꢄ Eꢓꢄꢃꢈꢃꢊꢄꢍꢀꢈꢁꢎꢄ Eꢓꢄꢃꢈꢃꢅꢄꢍꢀꢈꢑꢎꢄ
ꢃꢊꢈꢀꢄ .ꢆꢄꢊꢈꢃꢄ &\FORSURS\OPHWK\OꢄEURPLGHꢆꢄ ꢃꢈꢃꢃꢒꢄ ꢃꢈꢊꢈꢉꢄ ꢀꢈꢁꢁꢄ Dꢓꢄꢃꢈꢉꢂꢄꢍꢊꢒꢎꢆꢄ Dꢓꢄꢃꢈꢁꢅꢄꢍꢀꢑꢎꢆꢄ
ꢍꢕꢄꢀꢎꢄ
ꢍꢕꢄꢀꢎꢄ
ꢍꢕꢄꢀꢎꢄ
ꢄꢄ
ꢀꢈꢉꢄ
Eꢓꢄꢃꢈꢃꢂꢄꢍꢉꢎꢄ Eꢓꢄꢃꢈꢀꢀꢄꢍꢐꢎꢄ
ꢊꢄ
ꢅꢄ
ꢃꢉꢈꢃꢄ 1Dꢆꢄꢅꢈꢐꢄ 2FW\OꢄEURPLGHꢆꢄꢁꢈꢉꢄ
ꢃꢈꢀꢁꢉꢄ ꢀꢄ ꢃꢈꢒꢅꢄ Fꢓꢄꢃꢈꢒꢁꢄꢍꢊꢒꢎꢄ Fꢓꢄꢃꢈꢉꢊꢄꢍꢁꢁꢎꢄ Fꢓꢄꢃꢈꢀꢁꢄꢍꢉꢎꢄ ꢃꢈꢉꢃꢄꢍꢁꢀꢎꢄ
ꢃꢉꢈꢃꢄ 1Dꢆꢄꢅꢈꢂꢄ +H[ꢇꢉꢇHQꢇꢀꢇ\OꢄEURPLGHꢆꢄꢁꢈꢉꢄ ꢃꢈꢀꢃꢃꢄ ꢀꢄ ꢁꢈꢅꢃꢄ Gꢓꢄꢃꢈꢒꢃꢄꢍꢊꢂꢎꢄ Gꢓꢄꢃꢈꢉꢃꢄꢍꢁꢃꢎꢄ Gꢓꢄꢃꢈꢁꢀꢄꢍꢒꢎꢄ ꢃꢈꢀꢀꢄꢍꢉꢎꢄ
ꢉ ꢄ ꢃꢉꢈꢀꢄ .ꢆꢄꢉꢈꢃꢄ %XW\OꢄEURPLGHꢆꢄꢁꢈꢉꢄ
ꢃꢈꢀꢃꢃꢄ ꢀꢄ ꢊꢈꢊꢁꢄ Hꢓꢀꢃꢈꢂꢃꢄꢍꢊꢁꢎꢄ Hꢓꢄꢃꢈꢉꢃꢄꢍꢁꢃꢎꢄ Hꢓꢀꢃꢈꢀꢃꢄꢍꢅꢎꢄ ꢍꢕꢄꢀꢎꢄ
ꢃꢈꢁꢉꢃꢄ ꢀꢄ ꢉꢈꢃꢃꢄ Hꢓꢄꢀꢈꢂꢃꢄꢍꢊꢃꢎꢄ Hꢓꢄꢃꢈꢂꢉꢄꢍꢀꢅꢎꢄ Hꢓꢄꢃꢈꢐꢅꢄꢍꢀꢁꢎꢄꢃꢈꢅꢑꢄꢍꢂꢎꢄ
ꢃꢈꢁꢉꢃꢄ ꢀꢄ ꢊꢈꢅꢃꢄ Hꢓꢄꢀꢈꢂꢃꢄꢍꢊꢃꢎꢄ Hꢓꢄꢀꢈꢃꢃꢄꢍꢀꢐꢎꢄ Hꢓꢄꢃꢈꢅꢃꢄꢍꢐꢎꢄ ꢃꢈꢅꢅꢄꢍꢐꢎꢄ
ꢑꢄ
ꢐꢄ
ꢀꢁꢈꢉꢄ .ꢆꢄꢀꢁꢈꢃꢄ %XW\OꢄEURPLGHꢆꢄꢑꢈꢁꢉꢄ
ꢀꢁꢈꢉꢄ 1Dꢆꢄꢀꢁꢈꢃꢄ %XW\OꢄEURPLGHꢆꢄꢑꢈꢁꢉꢄ
ꢄ $YHUDJHGꢄYDOXHVꢄIURPꢄWKHꢄUHVXOWVꢄRIꢄDWꢄOHDVWꢄWZRꢄH[SHULPHQWVꢄDUHꢄJLYHQꢄꢍWKHꢄHUURUꢄIRUꢄWKHꢄPDLQꢄSURGXFWVꢄGRHVꢄQRWꢄH[FHHGꢄꢁOꢎꢈꢄ7KHꢄ\LHOGVꢄ
ꢄ ZHUHꢄFDOFXODWHGꢄRQꢄWKHꢄLQLWLDOꢄDPRXQWꢄRIꢄWKHꢄPHWDOꢄZLWKꢄDFFRXQWꢄWDNHQꢄRIꢄWKHꢄUHDFWLRQꢄVWRLFKLRPHWU\ꢈꢄꢄ
ꢄ 7KHꢄUHDFWLRQꢄPL[WXUHꢄDOVRꢄFRQWDLQHGꢄXQLGHQWLILHGꢄFRPSRXQGVꢄLQꢄDQꢄRYHUDOOꢄDPRXQWꢄRIꢄaꢉOꢄDQGꢄEHQ]RQLWULOHꢄꢍꢕꢉOꢎꢆꢄWKHꢄODWWHUꢄEHLQJꢄIRUPHGꢄ
ꢄ YLDꢄSURWRQDWLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢈꢄꢄ
ꢄ 'DWDꢄRIꢄ>ꢁ@ꢈꢄ
GRXEOHꢄERQGꢆꢄDQGꢄDꢄWULSOHWꢄDWꢄ ꢄꢁꢈꢒꢊꢄSSPꢄIURPꢄSURWRQVꢄ UHVSRQGLQJꢄUDWLRVꢄLQꢄWKHꢄDON\ODWLRQꢄRIꢄWHUHSKWKDORQLWULOHꢄ
ꢍZKLFKꢄLVꢄFKDUDFWHUL]HGꢄE\ꢄGXDOꢄ(7ꢏ6 ꢄUHDFWLYLW\ꢎꢄGLIIHUꢄ
E\ꢄDQꢄRUGHUꢄRIꢄPDJQLWXGHꢄ>ꢀꢃ@ꢈꢄ7KXVꢄRXUꢄUHVXOWVꢄOHGꢄXVꢄ
WRꢄFRQFOXGHꢄWKDWꢄUDGLFDOꢄDQLRQꢄ,,ꢄUHDFWVꢄZLWKꢄDON\Oꢄ
KDOLGHVꢄIROORZLQJꢄPDLQO\ꢄWKHꢄ(7ꢄPHFKDQLVPꢈꢄ
RIꢄWKHꢄ&+ ꢄJURXSꢄFRQWLJXRXVꢄWRꢄWKHꢄDURPDWLFꢄULQJꢈꢄꢄ
7KHꢄ SUHVHQFHꢄ RIꢄ EXWꢇꢊꢇHQꢇꢀꢇ\OꢇVXEVWXWHGꢄ FRPꢇ
SRXQGVꢄ,,,EꢄDQGꢄ,9EꢄDPRQJꢄWKHꢄSURGXFWVꢄLQGLFDWHVꢄ
WKDWꢄWKHꢄUHDFWLRQꢄLQYROYHVꢄHOHFWURQꢄWUDQVIHUꢄIURPꢄUDGLFDOꢄ
DQLRQꢄ,,ꢄWRꢄDON\OꢄKDOLGHVꢄꢍWKHꢄUHVXOWVꢄRIꢄRXUꢄPRGHOꢄH[ꢇ
SHULPHQWVꢄ>ꢂ@ꢄUXOHGꢄRXWꢄDOWHUQDWLYHꢄZD\VꢄRIꢄLVRPHUL]Dꢇ
WLRQꢄ RIꢄ WKHꢄ F\FORSURS\OPHWK\Oꢄ PRLHW\ꢄ LQꢄ WKHꢄ LQLWLDOꢄ
EURPLGHꢄDQGꢄDON\ODWLRQꢄSURGXFWVꢎꢈꢄ7KHꢄRYHUDOOꢄQꢏLꢄUDWLRVꢄ
>ꢍ,,,Dꢖ,9Dꢎꢏꢍ,,,Eꢖ,9Eꢎ@ꢄ ZHUHꢄ HTXDOꢄ WRꢄ ꢁꢃꢄ DQGꢄ ꢅꢄ DWꢄ
LQLWLDOꢄFRQFHQWUDWLRQVꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄRIꢄꢃꢈꢀꢄDQGꢄ
ꢃꢈꢃꢃꢒꢄ0ꢆꢄUHVSHFWLYHO\ꢆꢄLꢈHꢈꢆꢄWKH\ꢄDSSURDFKHGꢄWKHꢄYDOXHVꢄ
W\SLFDOꢄRIꢄWKHꢄHOHFWURQꢇWUDQVIHUꢄPHFKDQLVPꢄLQꢄDQDORꢇ
JRXVꢄ UHDFWLRQVꢄ RIꢄ UDGLFDOꢄ DQLRQVꢄ GHULYHGꢄ IURPꢄ DUHQHVꢄ
>ꢒ@ꢔꢄVLPLODUꢄQꢏLꢄUDWLRVꢄꢍꢀꢑꢄDQGꢄꢊꢆꢄUHVSHFWLYHO\ꢎꢄZHUHꢄREꢇ
VHUYHGꢄH[SHULPHQWDOO\ꢄLQꢄWKHꢄDON\ODWLRQꢄRIꢄWHUHSKWKDORꢇ
QLWULOHꢄ UDGLFDOꢄ DQLRQꢆꢄ Z KLFKꢄ Z DVꢄ VKRZ Qꢄ WRꢄ IROORZ ꢄ WKHꢄ
(7ꢄPHFKDQLVPꢄ>ꢂ@ꢈꢄ7KHꢄUHGXFHGꢄRYHUDOOꢄQꢏLꢄUDWLRꢄDWꢄ
ORZHUꢄFRQFHQWUDWLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ ,,ꢄLVꢄDOVRꢄFRQꢇ
VLVWHQWꢄ ZLWKꢄ WKHꢄ (7ꢄ PHFKDQLVPꢆꢄ LQꢄ NHHSLQJꢄ ZLWKꢄ
LQFUHDVHGꢄSUREDELOLW\ꢄIRUꢄWKHꢄLVRPHUL]DWLRQꢄRIꢄLQLWLDOO\ꢄ
IRUPHGꢄ F\FORSURS\OPHWK\Oꢄ UDGLFDOꢄ DVꢄ FRPSDUHGꢄ WRꢄ LWVꢄ
FRPELQDWLRQꢄZLWKꢄUDGLFDOꢄDQLRQꢄ,,ꢈꢄ+RZHYHUꢆꢄWKHꢄLSVRꢏ
SDUDꢇDON\ODWLRQꢄUDWLRVꢄFKDUDFWHUL]LQJꢄWKHꢄUHJLRVHOHFꢇ
WLYLW\ꢄ RIꢄ VXEVWLWXWLRQꢄ LQꢄ UDGLFDOꢄ DQLRQꢄ ,,ꢄ E\ꢄ WKHꢄ QRQꢇ
LVRPHUL]HGꢄ ꢍ,,,Dꢓ,9Dꢀ ꢀ ꢁꢈꢊꢎꢄ DQGꢄ LVRPHUL]HGꢄ DON\Oꢄ
VSHFLHVꢄ ꢍ,,,Eꢓ,9Eꢀ ꢀ ꢃꢈꢂꢎꢄ DUHꢄ GLIIHUHQWꢈꢄ$ꢄ SUREDEOHꢄ
:HꢄH[WHQGHGꢄRXUꢄVWXG\ꢄWRZDUGꢄHOXFLGDWLQJꢄWKHꢄSRVꢇ
VLELOLW\ꢄRIꢄXVLQJꢄWKHꢄUHGXFWLYHꢄDFWLYDWLRQꢄRIꢄGLQLWULOHꢄ ,ꢄ
IRUꢄWKHꢄ V\QWKHVLVꢄ RIꢄ PRGLILHGꢄ SKWKDORQLWULOHVꢈꢄ )RUꢄWKLVꢄ
SXUSRVHꢆꢄZHꢄH[DPLQHGꢄWKHꢄHIIHFWꢄRIꢄVXFKꢄIDFWRUVꢄDVꢄWKHꢄ
VWUXFWXUHꢄRIꢄDON\ODWLQJꢄDJHQWꢆꢄFDWLRQꢄQDWXUHꢆꢄDQGꢄUHDFꢇ
WLRQꢄFRQGLWLRQVꢆꢄRQꢄWKHꢄSURGXFWꢄVWUXFWXUHꢄDQGꢄUDWLRꢈꢄ$Vꢄ
DON\ODWLQJꢄDJHQWVꢄLQꢄUHDFWLRQVꢄZLWKꢄUDGLFDOꢄDQLRQꢄ,,ꢄZHꢄ
XVHGꢄRFW\OꢄEURPLGHꢆꢄGRGHF\OꢄEURPLGHꢆꢄKH[ꢇꢉꢇHQꢇꢀꢇ\Oꢄ
EURPLGHꢆꢄDQGꢄꢀꢆꢉꢇGLEURPRSHQWDQHꢈꢄ%URPLGHVꢄZHUHꢄ
WDNHQꢄGXHꢄWRꢄWKHLUꢄKLJKHUꢄUHDFWLYLW\ꢄDVꢄFRPSDUHGꢄWRꢄWKHꢄ
FRUUHVSRQGLQJꢄFKORULGHVꢄ>ꢁꢆꢄꢀꢀ@ꢔꢄLQꢄDGGLWLRQꢆꢄDON\Oꢄ
EURPLGHVꢄHQVXUHGꢄSUHIHUHQWLDOꢄIRUPDWLRQꢄRIꢄDON\OꢇVXEꢇ
VWLWXWHGꢄ SKWKDORQLWULOHVꢄ UDWKHUꢄ WKDQꢄ GLDON\OꢇVXEVWLWXWHGꢄ
EHQ]RQLWULOHVꢆꢄ ZKLFKꢄ FDQQRWꢄ EHꢄ DWWDLQHGꢄ XVLQJꢄ DON\Oꢄ
LRGLGHVꢄꢍ6FKHPHꢄꢁꢎꢄ>ꢁ@ꢈꢄ:HꢄDOVRꢄWULHGꢄVRGLXPꢄLQVWHDGꢄ
RIꢄSRWDVVLXPꢄWRꢄJHQHUDWHꢄUDGLFDOꢄDQLRQꢄ,,ꢄIURPꢄSKWKDORꢇ
QLWULOHꢄ ,ꢄ DQGꢄ PDGHꢄ DWWHPSWVꢄ WRꢄ SHUIRUPꢄ HQODUJHGꢄ V\Qꢇ
WKHVLVꢄE\ꢄUDLVLQJꢄWKHꢄDPRXQWVꢄRIꢄWKHꢄUHDFWDQWVꢄDQGꢄWKHLUꢄ
FRQFHQWUDWLRQꢈꢄꢄ
,QꢄWKHꢄDON\ODWLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄVRGLXPꢄVDOWꢄ
ZLWKꢄ RFW\Oꢄ EURPLGHꢄ DQGꢄ KH[ꢇꢉꢇHQꢇꢀꢇ\Oꢄ EURPLGHꢆꢄ WKHꢄ
SURGXFWꢄUDWLRVꢄZHUHꢄVLPLODUꢄWRꢄWKRVHꢄUHSRUWHGꢄLQꢄ>ꢁ@ꢄIRUꢄ
UHDVRQꢄLVꢄVRPHꢄFRQWULEXWLRQꢄRIꢄWKHꢄ6 ꢄPHFKDQLVPꢄWRꢄWKHꢄ WKHꢄUHDFWLRQꢄZLWKꢄEXW\OꢄEURPLGHꢄꢍFIꢈꢄUXQꢄQRVꢈꢄꢊꢆꢄꢅꢆꢄDQGꢄ
ꢉꢔꢄ7DEOHꢄꢀꢎꢈꢄ3UHYLRXVO\ꢄXQNQRZQꢄꢁꢇRFW\OEHQ]RQLWULOHꢄꢄ
IRUPDWLRQꢄRIꢄFRPSRXQGꢄ,,,Dꢈꢄ,WꢄLVꢄNQRZQꢄWKDWꢄWKHꢄFRUꢇ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

5('8&7,9(ꢄꢄ$&7,9$7,21ꢄꢄ2)ꢄꢄ$5(1(6ꢓꢄꢄ;,;ꢈꢄꢄ
ꢀꢁꢂꢊꢄ
*&±06ꢄGDWDꢆꢄWKHꢄSURGXFWꢄPL[WXUHꢄZDVꢄPRUHꢄFRPSOH[ꢄ
WKDQꢄLQꢄWKHꢄUHDFWLRQVꢄZLWKꢄPRQREURPLGHVꢈꢄ$SDUWꢄIURPꢄꢄ
ꢇEURPRDON\OꢄGHULYDWLYHVꢄ,,,ꢄꢍꢀꢂOꢎꢆꢄ,9ꢄꢍꢑOꢎꢆꢄDQGꢄ9ꢄ
ꢍꢁOꢎꢆꢄLWꢄFRQWDLQHGꢄDERXWꢄaꢁꢃOꢄRIꢄDWꢄOHDVWꢄWKUHHꢄFRPꢇ
SRXQGVꢄUHVXOWLQJꢄIURPꢄUHSODFHPHQWꢄRIꢄERWKꢄKDORJHQꢄ
DWRPVꢄLQꢄWKHꢄDON\ODWLQJꢄDJHQWꢄE\ꢄF\DQRꢇꢄDQGꢄGLF\DQRꢇ
SKHQ\OꢄJURXSVꢈꢄ2EYLRXVO\ꢆꢄWKHꢄVHFRQGꢄEURPLQHꢄDWRPꢄLVꢄ
UHSODFHGꢄYLDꢄUHDFWLRQꢄRIꢄLQLWLDOO\ꢄIRUPHGꢄSURGXFWVꢄ,,,±
ꢍ,,,FꢎꢆꢄꢅꢇRFW\OSKWKDORQLWULOHꢄꢍ,9FꢎꢆꢄꢁꢇꢍKH[ꢇꢉꢇHQꢇꢀꢇ\Oꢎꢇ
EHQ]RQLWULOHꢄ ꢍ,,,Gꢎꢆꢄ ꢅꢇꢍKH[ꢇꢉꢇHQꢇꢀꢇ\OꢎSKWKDORQLWULOHꢄ
ꢍ,9Gꢎꢆꢄ DQGꢄ ꢁꢆꢉꢇELVꢍKH[ꢇꢉꢇHQꢇꢀꢇ\OꢎEHQ]RQLWULOHꢄ ꢍ9Gꢎꢄ
ZHUHꢄLVRODWHGꢄDVꢄLQGLYLGXDOꢄVXEVWDQFHVꢄDQGꢄZHUHꢄFKDUDFꢇ
WHUL]HGꢄE\ꢄVSHFWUDOꢄGDWDꢄꢍVHHꢄ([SHULPHQWDOꢎꢈꢄ7KHꢄIRUPDꢇ
WLRQꢄRIꢄꢁꢆꢉꢇGLRFW\OEHQ]RQLWULOHꢄꢍ9FꢎꢄDVꢄPLQRUꢄSURGXFWꢄLQꢄ
UXQꢄQRꢈꢄꢊꢄZDVꢄGHWHFWHGꢄE\ꢄ*&±06ꢄDQGꢄ +ꢄ105ꢄDQDOꢇ
\VLVꢄRIꢄWKHꢄUHDFWLRQꢄPL[WXUHꢈꢄ:HꢄFDQꢄFRQFOXGHꢄWKDWꢄWKHꢄ
UHDFWLYLW\ꢄ RIꢄ UDGLFDOꢄDQLRQꢄ,,ꢄ DOPRVWꢄ GRHVꢄ QRWꢄ FKDQJHꢄ 9ꢄZLWKꢄUDGLFDOꢄ,,ꢈꢄ:HꢄEHOLHYHꢄWKDWꢄWKHꢄFRQWULEXWLRQꢄRIꢄ
RQꢄ UHSODFHPHQWꢄ RIꢄ WKHꢄ FRXQWHULRQꢆꢄ H[WHQVLRQꢄ RIꢄ WKHꢄꢄ WKHVHꢄVLGHꢄSURFHVVHVꢄPD\ꢄEHꢄUHGXFHGꢄE\ꢄFKDQJLQJꢄWKHꢄ
QꢇDON\OꢄFKDLQꢄXSꢄWRꢄ& ꢆꢄDQGꢄLQWURGXFWLRQꢄRIꢄDꢄWHUPLQDOꢄ RUGHUꢄRIꢄPL[LQJꢄRIꢄWKHꢄUHDFWDQWꢄLQꢄVXFKꢄDꢄZD\ꢄWKDWꢄꢄ
GRXEOHꢄERQGꢄLQWRꢄWKHꢄDON\ODWLQJꢄDJHQWꢈꢄ2QꢄWKHꢄRWKHUꢄ ꢀꢆꢉꢇGLEURPRSHQWDQHꢄ EHꢄ SHUVLVWHQWO\ꢄ SUHVHQWꢄ LQꢄ H[FHVVꢄ
KDQGꢆꢄ DSDUWꢄ IURPꢄ WKHꢄ DERYHꢄ OLVWHGꢄ DON\OꢇVXEVWLWXWHGꢄ
ZLWKꢄUHVSHFWꢄWRꢄUDGLFDOꢄDQLRQꢄ,,ꢈꢄ+RZHYHUꢆꢄWKHꢄPRVWꢄ
SURGXFWVꢆꢄWKHꢄUHDFWLRQꢄPL[WXUHVꢄFRQWDLQHGꢄELSKHQ\Oꢇ
SUREDEOHꢄUHVXOWꢄZRXOGꢄEHꢄLQFUHDVHGꢄ\LHOGꢄRIꢄGLDON\Oꢄ
ꢁꢆꢊꢋꢆꢅꢋꢇWULFDUERQLWULOHꢄꢍ9,ꢎꢄꢍDꢄSUREDEOHꢄPHFKDQLVPꢄRIꢄLWVꢄ GHULYDWLYHVꢄ9ꢄUDWKHUꢄWKDQꢄWDUJHWꢄGLQLWULOHVꢄ,9ꢈꢄꢄ
IRUPDWLRQꢄLVꢄGLVFXVVHGꢄEHORZꢎꢈꢄ7KHꢄUHDFWLRQꢄRIꢄGRGHF\Oꢄ
EURPLGHꢄZLWKꢄUDGLFDOꢄDQLRQꢄ,,ꢄVRGLXPꢄVDOWꢄꢍUHDFWLRQꢄ
WLPHꢄꢊꢄKꢎꢄJDYHꢄQRꢄPRUHꢄWKDQꢄꢀꢃOꢄꢍRYHUDOOꢄ\LHOGꢆꢄ
DFFRUGLQJꢄWRꢄWKHꢄ*&±06ꢄGDWDꢎꢄRIꢄDON\ODWLRQꢄSURGXFWVꢄ
OLNHꢄ,,,ꢄDQGꢄ,9ꢆꢄZKLOHꢄWKHꢄPDMRUꢄSURGXFWꢄZDVꢄWULF\DQRꢇ
ELSKHQ\Oꢄ9,ꢀꢍ\LHOGꢄaꢐꢃOꢎꢈꢄ$QꢄDQDORJRXVꢄSDWWHUQꢄZDVꢄ
REVHUYHGꢄ SUHYLRXVO\ꢄ LQꢄ WKHꢄ UHDFWLRQꢄ RIꢄ ,,ꢄ Z LWKꢄ EXW\Oꢄ
FKORULGHꢄ >ꢁ@ꢈꢄ 5DLVLQJꢄ WKHꢄ WHPSHUDWXUHꢄ WRꢄ aꢁꢃƒ&ꢄ ꢍWKHꢄ
7ULF\DQRELSKHQ\Oꢄ9,ꢄLVꢄOLNHO\ꢄWRꢄEHꢄIRUPHGꢄDFFRUGꢇ
LQJꢄ WRꢄ 6FKHPHꢄ ꢊꢆꢄ ZKLFKꢄ LQFOXGHVꢄ GLPHUL]DWLRQꢄ RIꢄ
UDGLFDOꢄDQLRQꢄ,,ꢄDQGꢄWKHꢄVXEVHTXHQWꢄLUUHYHUVLEOHꢄGHF\ꢇ
DQDWLRQꢄRIꢄGLDQLRQLFꢄGLPHUꢄ9,,ꢈꢄ:KLOHꢄVWXG\LQJꢄHOHFꢇ
WURFKHPLFDOꢄUHGXFWLRQꢄRIꢄGLF\DQREHQ]HQHVꢄE\ꢄF\FOLFꢄ
YROWDPPHWU\ꢆꢄ RQO\ꢄ LVRSKWKDORQLWULOHꢄ UDGLFDOꢄ DQLRQꢄ ZDVꢄ
IRXQGꢄWRꢄXQGHUJRꢄGLPHUL]DWLRQꢄ>ꢀꢁ@ꢈꢄ7ULF\DQRELSKHQ\Oꢄ
9,ꢄDWWUDFWVꢄLQWHUHVWꢄDVꢄSRWHQWLDOꢄVWDUWLQJꢄFRPSRXQGꢄIRUꢄ
DON\ODWLRQꢄ RIꢄ ,,ꢄ Z DVꢄ FDUULHGꢄ RXWꢄ LQꢄ 7+)ꢎꢄ UHVXOWHGꢄ LQꢄ
RQO\ꢄDꢄVOLJKWꢄꢍXSꢄWRꢄꢁꢃOꢎꢄLQFUHDVHꢄRIꢄWKHꢄ\LHOGꢄRIꢄWKHꢄ
WKHꢄ V\QWKHVLVꢄ RIꢄ PRGLILHGꢄ SKWKDORF\DQLQHVꢔꢄ WKHUHIRUHꢆꢄ
ZHꢄ VWXGLHGꢄ GLPHUL]DWLRQꢄ RIꢄ UDGLFDOꢄ DQLRQꢄ ,,ꢄ LQꢄ WKHꢄ
DON\ODWLRQꢄSURGXFWVꢈꢄ:HꢄFDQQRWꢄSURSRVHꢄDQꢄXQDPELJXꢇ
DEVHQFHꢄRIꢄDON\ODWLQJꢄDJHQWꢄXQGHUꢄYDULRXVꢄFRQGLWLRQVꢄ
RXVꢄ H[SODQDWLRQꢄ IRUꢄ WKHꢄ REVHUYHGꢄ GLIIHUHQFHꢄ LQꢄ WKHꢄ
ꢍWKHꢄ FRQFHQWUDWLRQꢄ RIꢄ ,,ꢄ DQGꢄ FRXQWHULRQꢄ QDWXUHꢄ ZHUHꢄ
UHVXOWVꢄ RIꢄDON\ODWLRQꢄ RIꢄ UDGLFDOꢄ DQLRQꢄ ,,ꢄ ZLWKꢄ GRGHF\Oꢄ
YDULHGꢎꢈꢄ:KHQꢄUDGLFDOꢄDQLRQꢄ,,ꢄVRGLXPꢄVDOWꢄZDVꢄNHSWꢄLQꢄ
EURPLGHꢆꢄRQꢄWKHꢄRQHꢄKDQGꢆꢄDQGꢄZLWKꢄEXW\OꢄDQGꢄRFW\Oꢄ
OLTXLGꢄDPPRQLDꢄDWꢄDꢄFRQFHQWUDWLRQꢄRIꢄꢃꢈꢉꢄ0ꢄIRUꢄꢀꢄKꢄDWꢄꢄ
EURPLGHVꢆꢄRQꢄWKHꢄRWKHUꢈꢄ
±ꢅꢃꢄWRꢄ±ꢊꢉƒ&ꢆꢄELSKHQ\Oꢄ9,ꢄZDVꢄIRUPHGꢄLQꢄꢉꢃOꢄ\LHOGꢄ
7KHꢄ UHDFWLRQVꢄ RIꢄ UDGLFDOꢄ DQLRQꢄ ,,ꢄ SRWDVVLXPꢄ DQGꢄ
VRGLXPꢄVDOWVꢄZLWKꢄEXW\OꢄEURPLGHꢄZHUHꢄSHUIRUPHGꢄXVLQJꢄ
ODUJHUꢄDPRXQWVꢄRIꢄWKHꢄUHDFWDQWVꢄDQGꢄWKHLUꢄFRQFHQWUDWLRQꢄ
ꢍUXQꢄQRVꢈꢄꢑꢆꢄꢐꢔꢄ7DEOHꢄꢀꢎꢈꢄ:HꢄREVHUYHGꢄQRꢄDSSUHFLDEOHꢄ
YDULDWLRQꢄLQꢄWKHꢄ\LHOGꢄRIꢄDON\ODWLRQꢄSURGXFWVꢄ,,,Hꢆꢄ,9Hꢆꢄ
DQGꢄ 9Hꢄ DQGꢄ WKHLUꢄ UDWLRꢈꢄ &RQGLWLRQVꢄ IRUꢄ TXDQWLWDWLYHꢄ
LVRODWLRQꢄ RIꢄ GLQLWULOHꢄ ,9Hꢄ E\ꢄ FROXPQꢄ FKURPDWRJUDSK\ꢄ
RQꢄVLOLFDꢄJHOꢄZHUHꢄIRXQGꢈꢄꢄ
ꢍUXQꢄQRꢈꢄꢀꢆꢄ7DEOHꢄꢁꢎꢈꢄ,QꢄWKLVꢄFDVHꢆꢄOHVVꢄWKDQꢄꢉOꢄRIꢄLQLWLDOꢄ
GLQLWULOHꢄ ,ꢄ ZDVꢄ UHFRYHUHGꢔꢄ SUHVXPDEO\ꢆꢄ Dꢄ FRQVLGHUDEOHꢄ
SDUWꢄ RIꢄ ,,ꢄXQGHUJRHVꢄWUDQVIRUPDWLRQVꢄ LQYROYLQJꢄ F\DQRꢄ
JURXSVꢄWRꢄJLYHꢄKLJKꢇPROHFXODUꢄFRPSRXQGVꢄRIꢄXQNQRZQꢄ
QDWXUHꢈꢄ 5HJDUGOHVVꢄ RIꢄ WKHꢄ UHDFWLRQꢄ WLPHꢆꢄ IURPꢄ UDGLFDOꢄ
DQLRQꢄ ,,ꢄ OLWKLXPꢄ VDOWꢄ DWꢄ Dꢄ FRQFHQWUDWLRQꢄ RIꢄ ꢃꢈꢀꢄ 0ꢄ Z Hꢄ
REWDLQHGꢄQRꢄPRUHꢄWKDQꢄꢁꢃOꢄRIꢄELSKHQ\Oꢄ9,ꢄꢍUXQꢄQRVꢈꢄꢁꢆꢄ
ꢊꢔꢄ7DEOHꢄꢁꢎꢈꢄ5DLVLQJꢄWKHꢄFRQFHQWUDWLRQꢄRIꢄ,,Â/LꢄWRꢄꢃꢈꢊꢄ0ꢄ
LQFUHDVHGꢄWKHꢄ\LHOGꢄRIꢄ9,ꢄWRꢄꢉꢂOꢄꢍUXQꢄQRꢈꢄꢅꢆꢄ7DEOHꢄꢁꢎꢈꢄ
8QOLNHꢄWKHꢄUHDFWLRQꢄZLWKꢄWKHꢄVRGLXPꢄVDOWꢆꢄXQUHDFWHGꢄ
:LWKꢄDꢄYLHZꢄWRꢄGHYHORSꢄDꢄV\QWKHWLFꢄURXWHꢄWRꢄ ꢇIXQFꢇ
WLRQDOL]HGꢄDON\OꢇVXEVWLWXWHGꢄSKWKDORQLWULOHVꢆꢄZHꢄH[DPLQꢇ
HGꢄWKHꢄUHDFWLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄVRGLXPꢄVDOWꢄZLWKꢄꢄ GLQLWULOHꢄ,ꢄZDVꢄUHFRYHUHGꢄIURPꢄWKHꢄPL[WXUHꢆꢄDQGꢄWKHꢄ
ꢀꢆꢉꢇGLEURPRSHQWDQHꢈꢄ$FFRUGLQJꢄWRꢄWKHꢄ +ꢄ105ꢄDQGꢄ RYHUDOOꢄ\LHOGꢄDWWDLQHGꢄꢐꢃ±ꢂꢃOꢈꢄ2EYLRXVO\ꢆꢄZHDNHUꢄLRQꢄ
6FKHPHꢀꢇꢂꢀ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

3$17(/((9$ꢄꢄHWꢄDOꢈꢄ
7DEOHꢀꢆꢂꢄ)RUPDWLRQꢄRIꢄELSKHQ\OꢇꢁꢆꢊꢋꢆꢅꢋꢇWULFDUERQLWULOHꢄꢍ9,ꢎꢄIURPꢄUDGLFDOꢄDQLRQꢄ,,ꢄVDOWVꢄLQꢄOLTXLGꢄDPPRQLD ꢄ
ꢀꢁꢂꢅꢄ
$PRXQWVꢄRIꢄUHDFWDQWVꢆꢄPPROꢄ
3URGXFWꢄFRPSRVLWLRQꢆꢄPPROꢄꢍ\LHOGꢆꢄPROꢄOꢎꢄ
5HDFWLRQꢄ
WLPHꢆꢄKꢄ
5XQꢄQRꢈꢄ
,,ꢆꢀPROꢏOꢄ
DONDOLꢄPHWDOꢄ
1Dꢆꢄꢒꢈꢉꢄ
/Lꢆꢄꢁꢈꢂꢄ
,ꢄ
,ꢄ
9,ꢄ
ꢀꢄ
ꢁꢄ
ꢊꢄ
ꢅꢄ
ꢀꢃꢈꢃꢄ
ꢃꢊꢈꢀꢄ
ꢃꢊꢈꢀꢄ
ꢀꢁꢈꢃꢄ
ꢃꢈꢉꢄ
ꢃꢈꢀꢄ
ꢃꢈꢀꢄ
ꢃꢈꢊꢄ
ꢀꢄ
ꢈꢃꢃꢈꢉꢄ
ꢁꢄ
ꢃꢈꢊꢃꢄ
ꢀꢈꢉꢊꢄ
ꢀꢈꢉꢃꢄ
ꢊꢈꢁꢂꢄ
ꢁꢈꢅꢃꢄꢍꢉꢃꢎꢄ
ꢃꢈꢁꢁꢄꢍꢀꢑꢎꢄ
ꢃꢈꢁꢉꢄꢍꢀꢐꢎꢄ
ꢊꢈꢁꢃꢄꢍꢉꢂꢎꢄ
/Lꢆꢄꢊꢈꢃꢄ
/Lꢆꢄꢀꢀꢈꢀꢄ
ꢀꢄ
ꢄ 6HHꢄQRWHVꢄWRꢄ7DEOHꢄꢀꢈꢄ
DVVRFLDWLRQꢄRIꢄOLWKLXPꢄVDOWVꢄLQꢄOLTXLGꢄDPPRQLDꢆꢄDVꢄFRPꢇ
SDUHGꢄWRꢄRWKHUꢄDONDOLQHꢄPHWDOꢄVDOWVꢄ>ꢀꢊ@ꢆꢄIDYRUVꢄUHGXFHGꢄ
FRQWULEXWLRQꢄRIꢄVLGHꢄSURFHVVHVꢈꢄꢄ
(;3(5,0(17$/ꢄ
7KHꢄ +ꢄ 105ꢄ VSHFWUDꢄ ZHUHꢄ UHFRUGHGꢄ RQꢄ Dꢄ %UXNHUꢄ
:3ꢇꢁꢃꢃ6<ꢄVSHFWURPHWHUꢄIURPꢄVROXWLRQVꢄLQꢄꢍ&' ꢎ &2ꢔꢄ
WKHꢄ FKHPLFDOꢄ VKLIWVꢄ ZHUHꢄ PHDVXUHGꢄ UHODWLYHꢄ WRꢄ WHWUDꢇ
PHWK\OVLODQHꢈꢄ7KHꢄ,5ꢄVSHFWUDꢄZHUHꢄUHFRUGHGꢄLQꢄ.%Uꢄ
ꢍFRQFHQWUDWLRQꢄꢃꢈꢁꢉꢄZWꢄOꢎꢄRUꢄIURPꢄWKLQꢄILOPVꢄRQꢄDꢄ85ꢇ
ꢁꢃꢄLQVWUXPHQWꢈꢄ7KHꢄPROHFXODUꢄZHLJKWVꢄZHUHꢄGHWHUPLQHGꢄ
IURPꢄ WKHꢄ KLJKꢇUHVROXWLRQꢄ PDVVꢄ VSHFWUDꢄ Z KLFKꢄ Z HUHꢄ
REWDLQHGꢄ RQꢄ Dꢄ )LQQLJDQꢄ 0$7ꢇꢂꢁꢃꢃꢄ VSHFWURPHWHUꢈꢄ7KHꢄ
UHDFWLRQꢄ PL[WXUHVꢄ ZHUHꢄ DQDO\]HGꢄ E\ꢄ JDV±OLTXLGꢄ FKURꢇ
PDWRJUDSK\ꢄRQꢄDQꢄ/.K0ꢇꢐ$ꢄLQVWUXPHQWꢄꢍꢁꢈꢉîꢃꢈꢃꢃꢁꢇPꢄ
FROXPQꢔꢄVWDWLRQDU\ꢄSKDVHꢄꢀꢉOꢄRIꢄ6.7)9ꢇꢂꢊꢄRQꢄ
&KURPRVRUEꢄ:ꢔꢄRYHQꢄWHPSHUDWXUHꢄSURJUDPPLQJꢄIURPꢄ
ꢀꢃꢃꢄWRꢄꢊꢃꢃƒ&ꢄDWꢄꢀꢃꢄGHJꢏPLQꢔꢄFDUULHUꢄJDVꢄKHOLXPꢆꢄIORZꢄ
UDWHꢄꢃꢈꢑꢄOꢏKꢎꢈꢄ&RPSRQHQWVꢄRIꢄWKHꢄUHDFWLRQꢄPL[WXUHVꢄZHUHꢄ
LGHQWLILHGꢄ E\ꢄ *&±06ꢄ XVLQJꢄ Dꢄ +HZOHWW±3DFNDUGꢄ
*ꢀꢃꢂꢀ$ꢄV\VWHPꢄFRQVLVWLQJꢄRIꢄDQꢄ+3ꢄꢉꢂꢒꢃꢄ6HULHVꢄ,,ꢄꢄ
JDVꢄ FKURPDWRJUDSKꢄ DQGꢄ DQꢄ +3ꢄ ꢉꢒꢐꢀꢄ PDVVꢇVHOHFWLYHꢄ
GHWHFWRUꢄ ꢍHOHFWURQꢄ LPSDFWꢆꢄ ꢐꢃꢄ H9ꢔꢄ +3ꢉꢄ FROXPQꢆꢄꢄ
ꢊꢃꢄPîꢃꢈꢁꢉꢄPPꢆꢄ ILOPꢄ WKLFNQHVVꢄ ꢃꢈꢁꢉꢄ Pꢆꢄ VWDWLRQDU\ꢄ
SKDVHꢄ ꢉOꢄ RIꢄ ELSKHQ\Oꢄ ꢖꢄ ꢒꢉOꢄ RIꢄ GLPHWK\OVLOR[DQHꢔꢄ
FDUULHUꢄJDVꢄKHOLXPꢆꢄIORZꢄUDWHꢄꢀꢄPOꢏPLQꢔꢄRYHQꢄWHPSHUDꢇ
WXUHꢄSURJUDPPLQJꢄ LQꢄWKHꢄIROORZLQJꢄ PRGHꢓꢄꢁꢄ PLQꢄDWꢄꢄ
ꢉꢃƒ&±ꢀꢃꢄ GHJꢏPLQ±ꢉꢄ PLQꢄ DWꢄ ꢁꢂꢃƒ&ꢔꢄ LQMHFWRUꢄ WHPSHUDꢇ
WXUHꢄ ꢁꢂꢃƒ&ꢔꢄ LRQꢄ VRXUFHꢄ WHPSHUDWXUHꢄ ꢀꢐꢊƒ&ꢔꢄ GDWDꢄ
DFTXLVLWLRQꢄDWꢄꢀꢈꢁꢄVFDQꢏVꢆꢄDꢈPꢈXꢈꢄUDQJHꢄꢊꢃ±ꢑꢉꢃꢎꢈꢄ
7KHꢄUHVXOWVꢄRIꢄWKHꢄSUHVHQWꢄVWXG\ꢄZHUHꢄDQDO\]HGꢄIURPꢄ
WKHꢄYLHZSRLQWꢄRIꢄWKHLUꢄV\QWKHWLFꢄXWLOLW\ꢆꢄDQGꢄWKHꢄIROORZꢇ
LQJꢄFRQFOXVLRQVꢄZHUHꢄGUDZQꢈꢄ6LQJOHꢇHOHFWURQꢄUHGXFWLYHꢄ
DFWLYDWLRQꢄRIꢄSKWKDORQLWULOHꢄꢍ,ꢎꢄZLWKꢄDONDOLꢄPHWDOVꢆꢄIROꢇ
ORZHGꢄE\ꢄWUHDWPHQWꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄZLWKꢄDON\Oꢄ
EURPLGHVꢄ LQꢄ OLTXLGꢄ DPPRQLDꢆꢄ JLYHVꢄ aꢁꢃOꢄ ꢍZ LWKꢄ
DFFRXQWꢄWDNHQꢄRIꢄWKHꢄVWRLFKLRPHWU\ꢄRIꢄUDGLFDOꢄUHDFWLRQVꢎꢄ
RIꢄꢅꢇDON\OSKWKDORQLWULOHVꢄ,9ꢄDVꢄSRWHQWLDOꢄSUHFXUVRUVꢄRIꢄ
PRGLILHGꢄSKWKDORF\DQLQHVꢈꢄ1HYHUWKHOHVVꢆꢄWKHꢄH[DPLQHGꢄ
UHDFWLRQꢄPD\ꢄEHꢄXVHGꢄDVꢄDꢄEDVLVꢄIRUꢄWKHꢄGHYHORSPHQWꢄRIꢄ
DFFHSWDEOHꢄV\QWKHWLFꢄSURFHGXUHVꢄIRUꢄWKHꢄSUHSDUDWLRQꢄRIꢄ
VXFKꢄ FRPSRXQGVꢆꢄ IRUꢄ ERWKꢄ VWDUWLQJꢄ PDWHULDOVꢄ DQGꢄ UHꢇ
DJHQWVꢄDUHꢄUHDGLO\ꢄDFFHVVLEOHꢆꢄWKHꢄSURFHVVꢄLQFOXGHVꢄRQO\ꢄ
RQHꢄ VWHSꢆꢄ DQGꢄ WKHꢄ VHWꢄ RIꢄ DON\Oꢄ IUDJPHQWVꢄ WKDWꢄ PD\ꢄ EHꢄ
LQWURGXFHGꢄ LQWRꢄ SKWKDORQLWULOHꢄ PROHFXOHꢄ FRXOGꢄ EHꢄ H[ꢇ
WHQGHGꢄ FRQVLGHUDEO\ꢄ WRꢄ REWDLQꢄ SUHYLRXVO\ꢄ LQDFFHVVLEOHꢄ
ꢅꢇDON\Oꢄ GHULYDWLYHVꢈꢄ 8Sꢄ WRꢄQRZꢆꢄ RQO\ꢄ GHULYDWLYHVꢄ ZLWKꢄ
PHWK\Oꢄ DQGꢄ WHUWꢇEXW\Oꢄ JURXSVꢄ ZHUHꢄ UHSRUWHGꢆꢄ DQGꢄ
PHWKRGVꢄ IRUꢄ WKHLUꢄ SUHSDUDWLRQꢄ LQFOXGHꢄ Dꢄ QXPEHUꢄ RIꢄ
VWHSVꢄDQGꢄDUHꢄQRWꢄDGYDQWDJHRXVꢄꢍDVꢄFRQFHUQVꢄWKHꢄ\LHOGVꢄ
RIꢄ WKHꢄ WDUJHWꢄ SURGXFWVꢆꢄ FDOFXODWHGꢄ ZLWKꢄ UHVSHFWꢄ WRꢄ
VWDUWLQJꢄPDWHULDOVꢄZKRVHꢄDFFHVVLELOLW\ꢄLVꢄFRPSDUDEOHꢄ
ZLWKꢄWKDWꢄRIꢄSKWKDORQLWULOHꢔꢄVHHꢆꢄHꢈJꢈꢆꢄ>ꢀꢅꢆꢄꢀꢉ@ꢎꢈꢄ0RUHꢇ
RYHUꢆꢄDSDUWꢄIURPꢄDON\OꢇVXEVWLWXWHGꢄGLF\DQREHQ]HQHVꢆꢄ
VLQJOHꢇHOHFWURQꢄUHGXFWLRQꢄRIꢄSKWKDORQLWULOHꢄJLYHVꢄULVHꢄWRꢄ
ELSKHQ\OꢇꢁꢆꢊꢋꢆꢅꢋꢇWULFDUERQLWULOHꢄꢍ9,ꢆꢄ\LHOGꢄaꢑꢃOꢎꢄZKLFKꢄ
DOVRꢄDWWUDFWVꢄ LQWHUHVWꢄ DVꢄ LQLWLDOꢄ FRPSRXQGꢄ IRUꢄWKHꢄV\Qꢇ
WKHVLVꢄRIꢄPRGLILHGꢄSKWKDORF\DQLQHVꢈꢄ7KHꢄIRUPDWLRQꢄRIꢄ
9,ꢄDVꢄDꢄPLQRUꢄFRPSRQHQWꢄRIꢄDꢄFRPSOH[ꢄPL[WXUHꢄRIꢄ
SURGXFWVꢄREWDLQHGꢄE\ꢄHOHFWURFKHPLFDOꢄGHFDUER[\ODWLRQꢄ
RIꢄ VLOYHUꢄ SKWKDODWHꢄ LQꢄ WKHꢄ SUHVHQFHꢄ RIꢄ$J&1ꢄ >ꢀꢑ@ꢄ
FDQQRWꢄEHꢄUHJDUGHGꢄDVꢄDQꢄDFFHSWDEOHꢄPHWKRGꢄIRUꢄWKHꢄ
SUHSDUDWLRQꢄ RIꢄ WKLVꢄ FRPSRXQGꢈꢄ )LQDOO\ꢆꢄ DON\ODWHGꢄ EHQꢇ
]RQLWULOHVꢄ IRUPHGꢄ WRJHWKHUꢄ ZLWKꢄ SKWKDORQLWULOHꢄ GHULYDꢇ
WLYHVꢄDUHꢄXQGRXEWHGO\ꢄSURPLVLQJꢄDVꢄLQWHUPHGLDWHꢄSURGꢇ
XFWVꢄLQꢄILQHꢄRUJDQLFꢄV\QWKHVLVꢈꢄꢄ
/LTXLGꢄDPPRQLDꢄZDVꢄSXULILHGꢄE\ꢄGLVVROYLQJꢄPHWDOꢇ
OLFꢄ VRGLXPꢄ WKHUHLQꢄ DQGꢄ VXEVHTXHQWꢄ GLVWLOODWLRQꢄ LQWRꢄꢄ
DꢄUHDFWLRQꢄYHVVHOꢄFRROHGꢄWRꢄ±ꢐꢃƒ&ꢈꢄ7HWUDK\GURIXUDQꢄRIꢄ
SXUHꢄJUDGHꢄZDVꢄSXULILHGꢄE\ꢄWKHꢄSURFHGXUHꢄGHVFULEHGꢄLQꢄ
>ꢀꢐ@ꢄDQGꢄZDVꢄGLVWLOOHGꢄRYHUꢄVRGLXPꢄGLSKHQ\ONHW\OꢄLQꢄꢄ
DꢄVWUHDPꢄRIꢄDUJRQꢄXQGHUꢄDꢄSUHVVXUHꢄHTXDOꢄWRꢄDWPRVꢇ
SKHULFꢄ GLUHFWO\ꢄ LQWRꢄ Dꢄ UHDFWLRQꢄ YHVVHOꢈꢄ 0HWDOOLFꢄ SRWDVꢇ
VLXPꢆꢄ VRGLXPꢆꢄ DQGꢄ OLWKLXPꢄ ꢍSXUHꢄ JUDGHꢎꢄ ZHUHꢄ IUHHGꢄ
IURPꢄWKHꢄVXUIDFHꢄR[LGHꢄILOPꢄXQGHUꢄDꢄOD\HUꢄRIꢄDQK\GURXVꢄ
KH[DQHꢈꢄ 3KWKDORQLWULOHꢄ RIꢄ SXUHꢄ JUDGHꢄ Z DVꢄ SXULILHGꢄ E\ꢄ
VXEOLPDWLRQꢆꢄPSꢄꢀꢅꢀƒ&ꢔꢄSXEOLVKHGꢄGDWDꢄ>ꢀꢂ@ꢓꢄPSꢄꢀꢅꢃ±
ꢀꢅꢀƒ&ꢈꢄ $ON\Oꢄ KDOLGHVꢄ ZHUHꢄ SXULILHGꢄ E\ꢄ SDVVLQJꢄ WKHPꢄ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

5('8&7,9(ꢄꢄ$&7,9$7,21ꢄꢄ2)ꢄꢄ$5(1(6ꢓꢄꢄ;,;ꢈꢄꢄ
ꢀꢁꢂꢉꢄ
WKURXJKꢄ DꢄOD\HUꢄ RIꢄ DOXPLQXPꢄ R[LGHꢄ DQGꢄ VXEVHTXHQWꢄ &+ ꢎꢆꢄꢃꢈꢉꢀꢄTXLQWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢀꢈꢃꢑꢄVHSWꢄꢍꢀ+ꢆꢄ&+ꢎꢆꢄꢁꢈꢐꢅꢄGꢄ
GLVWLOODWLRQꢄMXVWꢄEHIRUHꢄH[SHULPHQWꢔꢄWKHLUꢄERLOLQJꢄSRLQWVꢄ
FRLQFLGHGꢄZLWKꢄWKRVHꢄJLYHQꢄLQꢄ>ꢀꢒ@ꢎꢈꢄ
ꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢐꢈꢊꢂꢄWꢈGꢄꢍꢀ+ꢆꢄꢉꢇ+ꢆꢄ- ꢄ ꢄꢐꢈꢉꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄ
ꢐꢈꢉꢐꢄPꢄꢍꢁ+ꢆꢄꢊꢇ+ꢆꢄꢑꢇ+ꢎꢆꢄꢐꢈꢑꢐꢄWꢈGꢄꢍꢀ+ꢆꢄꢅꢇ+ꢆꢄ- ꢄ ꢄꢐꢈꢉꢆꢄꢄ
- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢈꢄ)RXQGꢓꢄ>0@ ꢄꢀꢉꢐꢈꢃꢂꢂꢒꢈꢄ& + 1ꢈꢄ&DOꢇ
FXODWHGꢓꢄ0ꢄꢀꢉꢐꢈꢃꢂꢒꢀꢈꢄ
3KWKDORQLWULOHꢀ UDGLFDOꢀ DQLRQꢀ ꢈ,,ꢉꢀ VDOWVꢂꢄ $ONDOLꢄ
PHWDOꢄZDVꢄDGGHGꢄLQꢄVPDOOꢄSLHFHVꢄWRꢄDꢄVXVSHQVLRQꢄRIꢄ
GLQLWULOHꢄ,ꢄLQꢄOLTXLGꢄDPPRQLDꢄꢍIRUꢄDPRXQWVꢄRIꢄWKHꢄUHDFꢇ
WDQWVꢄ DQGꢄ WKHLUꢄ FRQFHQWUDWLRQꢆꢄ VHHꢄ 7DEOHꢄ ꢀꢎꢄ XQGHUꢄ
VWLUULQJꢄDWꢄ±ꢊꢊƒ&ꢄLQꢄDQꢄDUJRQꢄDWPRVSKHUHꢄRUꢄLQꢄDꢄVWUHDPꢄ
RIꢄJDVHRXVꢄDPPRQLDꢈꢄ7KHꢄPL[WXUHꢄZDVꢄWKHQꢄVWLUUHGꢄIRUꢄ
ꢀꢃꢄ PLQꢄ XQGHUꢄ WKHꢄ VDPHꢄ FRQGLWLRQVꢆꢄ DQGꢄ WKHꢄ UHVXOWLQJꢄ
&RPSRXQGꢄ9,Dꢈꢄ5 ꢄꢃꢈꢁꢃꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄ
ꢁꢁꢊꢉ±ꢁꢁꢅꢃꢄFP ꢈꢄ +ꢄ105ꢄVSHFWUXPꢆꢄ ꢆꢄSSPꢓꢄꢃꢈꢁꢐꢄPꢄ
ꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢃꢈꢉꢅꢄPꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢀꢈꢃꢅꢄPꢄꢍꢀ+ꢆꢄ&+ꢎꢆꢄꢁꢈꢐꢀꢄGꢄ
ꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢐꢈꢂꢅꢄGꢈGꢄꢍꢀ+ꢆꢄꢉꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄ
ꢐꢈꢒꢅꢄGꢄꢍꢀ+ꢆꢄꢑꢇ+ꢆꢄ- ꢄ ꢄꢂꢄ+]ꢎꢆꢄꢐꢈꢒꢑꢄGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ- ꢄ ꢄꢄ
GDUNꢄEURZQꢄVXVSHQVLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄVDOWꢄZDVꢄ ꢀꢈꢉꢄ+]ꢎꢈꢄ)RXQGꢓꢄ>0@ ꢄꢀꢂꢁꢈꢃꢂꢉꢃꢈꢄ& + 1 ꢈꢄ&DOFXODWHGꢓꢄ
XVHGꢄLQꢄIXUWKHUꢄH[SHULPHQWVꢈꢄ
0ꢄꢀꢂꢁꢈꢃꢂꢅꢅꢈꢄ
$ON\ODWLRQꢀRIꢀUDGLFDOꢀDQLRQꢀ,,ꢀVDOWꢂꢄ$ON\OꢄEURPLGHꢄ
ZDVꢄDGGHGꢄGURSZLVHꢄWRꢄDꢄVXVSHQVLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ
VDOWꢄ,,ꢆꢄDQGꢄWKHꢄPL[WXUHꢄZDVꢄVWLUUHGꢄLQꢄDQꢄLQHUWꢄDWPRVꢇ
SKHUHꢄRYHUꢄDꢄSHULRGꢄVSHFLILHGꢄLQꢄ7DEOHꢄꢀꢈꢄ7KHꢄPL[WXUHꢄ
ZDVꢄWKHQꢄGLOXWHGꢄZLWKꢄaꢉꢃꢄPOꢄRIꢄGLHWK\OꢄHWKHUꢄDQGꢄZDVꢄ
VWLUUHGꢄRQꢄH[SRVXUHꢄWRꢄDLUꢄXQWLOꢄWKHꢄDPPRQLDꢄYDSRUL]HGꢄ
FRPSOHWHO\ꢈꢄ7KHꢄ UHVLGXHꢄ ZDVꢄ WUHDWHGꢄ ZLWKꢄ ꢉꢃꢄ POꢄ RIꢄ
ꢆꢊꢈ%XWꢊꢇꢊHQꢊꢅꢊ\OꢉEHQ]RQLWULOHꢀꢈ,,,EꢉꢀDQGꢀꢋꢊꢈEXWꢊꢇꢊ
HQꢊꢅꢊ\OꢉSKWKDORQLWULOHꢀꢈ,9Eꢉꢂꢄ &\FORSURS\OPHWK\Oꢄ
EURPLGHꢆꢄꢃꢈꢀꢉꢄPOꢄꢍꢀꢈꢉꢄPPROꢎꢆꢄZDVꢄDGGHGꢄWRꢄDꢄVXVSHQꢇ
VLRQꢄ RIꢄ UDGLFDOꢄ DQLRQꢄ ,,ꢄ SRWDVVLXPꢄ VDOWꢄ SUHSDUHGꢄ E\ꢄ
DGGLWLRQꢄRIꢄꢃꢈꢀꢁꢄJꢄꢍꢊꢄPPROꢎꢄRIꢄPHWDOOLFꢄSRWDVVLXPꢄWRꢄꢄ
DꢄPL[WXUHꢄRIꢄꢃꢈꢅꢃꢄJꢄꢍꢊꢈꢀꢄPPROꢎꢄRIꢄGLQLWULOHꢄ ,ꢄDQGꢄꢄ
ꢊꢃꢃꢄPOꢄRIꢄOLTXLGꢄSRWDVVLXPꢈꢄ7KHꢄVXEVHTXHQWꢄSURFHGXUHꢄ
ZDWHUꢆꢄ DQGꢄ LQVROXEOHꢄ RUJDQLFꢄ SURGXFWVꢄ ZHUHꢄ ILOWHUHGꢄꢄ ZDVꢄVLPLODUꢄWRꢄWKDWꢄGHVFULEHGꢄDERYHꢈꢄ:HꢄLVRODWHGꢄꢃꢈꢊꢅꢄJꢄ
RIIꢆꢄZDVKHGꢄZLWKꢄGLHWK\OꢄHWKHUꢄDQGꢄZDWHUꢆꢄGULHGꢄLQꢄDLUꢆꢄ
DQGꢄ DQDO\]HGꢄ E\ꢄ +ꢄ 105ꢆꢄ *&±06ꢆꢄ RUꢄ */&ꢄ XVLQJꢄ ZDVꢄVHSDUDWHGꢄE\ꢄ7/&ꢄWRꢄLVRODWHꢄWZRꢄIUDFWLRQVꢈꢄ7KHꢄ
RIꢄDꢄPL[WXUHꢄRIꢄSURGXFWVꢄꢍUXQꢄQRꢈꢄꢁꢆꢄ7DEOHꢄꢀꢎꢆꢄZKLFKꢄ
DXWKHQWLFꢄVDPSOHVꢈꢄ7KHꢄDTXHRXVꢄSKDVHꢄZDVꢄH[WUDFWHGꢄ
ZLWKꢄGLHWK\OꢄHWKHUꢄꢍꢊîꢉꢃꢄPOꢎꢈꢄ7KHꢄH[WUDFWVꢄZHUHꢄFRPꢇ
ELQHGꢄDQGꢄGULHGꢄRYHUꢄ0J62 ꢆꢄWKHꢄVROYHQWꢄZDVꢄGLVWLOOHGꢄ
RIIꢆꢄ DQGꢄWKHꢄUHVLGXHꢄ Z DVꢄ DQDO\]HGꢄ E\ꢄ WKHꢄDERYHꢄ
PHWKRGVꢈꢄ ,QGLYLGXDOꢄ VXEVWDQFHVꢄ RUꢄ PL[WXUHVꢄ RIꢄ VWUXFꢇ
ILUVWꢄRIꢄWKHVHꢄꢍ5 ꢀaꢃꢈꢉꢃꢎꢆꢄꢃꢈꢃꢒꢄJꢆꢄZDVꢄDꢄPL[WXUHꢄRIꢄꢄ
ꢁꢇꢍF\FORSURS\OPHWK\OꢎEHQ]RQLWULOHꢄꢍ,,,DꢎꢄDQGꢄꢁꢇꢍEXWꢇꢊꢇ
HQꢇꢀꢇ\OꢎEHQ]RQLWULOHꢄ ꢍ,,,Eꢎꢄ DWꢄ Dꢄ PRODUꢄ UDWLRꢄ RIꢄ ꢅꢓꢀꢈꢄꢄ
+ꢄ105ꢄVSHFWUXPꢄRIꢄ,,,Eꢆꢄ ꢆꢄSSPꢓꢄꢁꢈꢅꢀꢄTꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄ
ꢁꢈꢒꢊꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢅꢈꢒꢅ±ꢉꢈꢃꢑꢄPꢄꢍꢁ+ꢆꢄ &+ ꢎꢆꢄꢉꢈꢐꢑ±
WXUDOO\ꢄUHODWHGꢄFRPSRXQGVꢄZHUHꢄLVRODWHGꢄE\ꢄSUHSDUDWLYHꢄ ꢉꢈꢒꢑꢄPꢄ ꢍꢀ+ꢆꢄ &+ꢎꢆꢄ ꢐꢈꢁꢂ±ꢐꢈꢐꢀꢄ Pꢄ ꢍꢅ+ꢆꢄ + ꢎꢈꢄ7KHꢄ
WKLQꢇOD\HUꢄ FKURPDWRJUDSK\ꢄ RQꢄ SODWHVꢄ ZLWKꢄ DꢄIL[HGꢄ
VRUEHQWꢄ OD\HUꢄ ꢍVLOLFDꢄ JHOꢄ /6/ ꢆꢄ ꢉꢏꢅꢃꢄ Pꢆꢄ FRQWDLQLQJꢄ
ꢀꢊꢄZWꢄOꢄRIꢄJ\SVXPꢎꢄXVLQJꢄKH[DQH±GLHWK\OꢄHWKHUꢄPL[ꢇ
WXUHVꢄꢍaꢂꢓꢀꢄWRꢄaꢒꢓꢀꢎꢄDVꢄHOXHQWꢔꢄWKHꢄVHSDUDWLRQꢄSURFHVVꢄ
ZDVꢄFRQWUROOHGꢄYLVXDOO\ꢄXQGHUꢄ89ꢄOLJKWꢄꢍDIWHUꢄGU\LQJꢎꢔꢄ
VHFRQGꢄIUDFWLRQꢄꢍ5 ꢄaꢃꢈꢊꢎꢆꢄꢃꢈꢃꢑꢄJꢆꢄZDVꢄDꢄPL[WXUHꢄRIꢄꢄ
ꢅꢇꢍF\FORSURS\OPHWK\OꢎSKWKDORQLWULOHꢄ ꢍ,9Dꢎꢄ DQGꢄ ꢅꢇꢍEXWꢇ
ꢊꢇHQꢇꢀꢇ\OꢎSKWKDORQLWULOHꢄꢍ,9EꢎꢄDWꢄDꢄPRODUꢄUDWLRꢄRIꢄꢀꢈꢑꢓꢀꢈꢄ
+ꢄ105ꢄVSHFWUXPꢄRIꢄ,9Eꢆꢄ ꢆꢄSSPꢓꢄꢁꢈꢅꢅꢄTꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄ
ꢁꢈꢒꢀꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢅꢈꢒꢅ±ꢉꢈꢃꢉꢄPꢄꢍꢁ+ꢆꢄ &+ ꢎꢆꢄꢉꢈꢐꢑ±ꢄ
VHSDUDWHGꢄIUDFWLRQVꢄZHUHꢄZDVKHGꢄRIIꢄIURPꢄWKHꢄVRUEHQWꢄ ꢉꢈꢒꢑꢄPꢄꢍꢀ+ꢆꢄ &+ꢎꢆꢄꢐꢈꢐꢐ±ꢐꢈꢒꢂꢄPꢄꢍꢊ+ꢆꢄ+ ꢎꢈꢄ$FFRUGꢇ
ZLWKꢄGLHWK\OꢄHWKHUꢈꢄ
LQJꢄWRꢄWKHꢄ*&±06ꢄGDWDꢆꢄWKHꢄPROHFXODUꢄZHLJKWVꢄRIꢄꢄ
,,,Dꢏ,,,EꢄDQGꢄ,9Dꢏ,9EꢄZHUHꢄꢀꢉꢐꢄDQGꢄꢀꢂꢁꢆꢄUHVSHFWLYHO\ꢈꢄꢄ
ꢆꢊꢈ&\FORSURS\OPHWK\OꢉEHQ]RQLWULOHꢀ ꢈ,,,Dꢉꢀ DQGꢀꢀ
ꢋꢊꢈF\FORSURS\OPHWK\OꢉSKWKDORQLWULOHꢀ ꢈ,9Dꢉꢂꢄ &\FORꢇ
SURS\OPHWK\OꢄEURPLGHꢆꢄꢃꢈꢁꢅꢄPOꢄꢍꢁꢈꢉꢄPPROꢎꢆꢄZDVꢄDGGHGꢄ
ꢆꢊ2FW\OEHQ]RQLWULOHꢀ ꢈ,,,Fꢉꢀ DQGꢀ ꢋꢊRFW\OSKWKDORꢊ
QLWULOHꢀꢈ,9Fꢉꢂꢄ2FW\OꢄEURPLGHꢆꢄꢃꢈꢅꢊꢄPOꢄꢍꢁꢈꢉꢄPPROꢎꢆꢄZDVꢄ
GURSZLVHꢄWRꢄDꢄVXVSHQVLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ,,ꢄSRWDVVLXPꢄ DGGHGꢄGURSZLVHꢄWRꢄDꢄVXVSHQVLRQꢄRIꢄUDGLFDOꢄDQLRQꢄ ,,ꢄ
VDOWꢄ SUHSDUHGꢄ E\ꢄ DGGLWLRQꢄ RIꢄ ꢃꢈꢀꢒꢄ Jꢄ ꢍꢉꢄ PPROꢎꢄ RIꢄ VRGLXPꢄ VDOWꢄ SUHSDUHGꢄ E\ꢄ DGGLWLRQꢄ RIꢄ ꢃꢈꢀꢃꢂꢄ Jꢄꢄ
PHWDOOLFꢄSRWDVVLXPꢄWRꢄDꢄPL[WXUHꢄRIꢄꢃꢈꢑꢉꢄJꢄꢍꢉꢈꢀꢄPPROꢎꢄ ꢍꢅꢈꢐꢄPPROꢎꢄRIꢄPHWDOOLFꢄVRGLXPꢄWRꢄDꢄPL[WXUHꢄRIꢄꢃꢈꢑꢅꢄJꢄ
RIꢄGLQLWULOHꢄ,ꢄDQGꢄꢉꢃꢄPOꢄRIꢄOLTXLGꢄDPPRQLDꢈꢄ7KHꢄVXEꢇ
ꢍꢉꢈꢃꢄPPROꢎꢄRIꢄGLQLWULOHꢄ,ꢄDQGꢄꢅꢃꢄPOꢄRIꢄOLTXLGꢄDPPRQLDꢈꢄ
VHTXHQWꢄSURFHGXUHꢄZDVꢄVLPLODUꢄWRꢄWKDWꢄGHVFULEHGꢄDERYHꢈꢄ 7KHꢄVXEVHTXHQWꢄSURFHGXUHꢄZDVꢄVLPLODUꢄWRꢄWKDWꢄGHVFULEꢇ
:HꢄLVRODWHGꢄꢃꢈꢉꢅꢄJꢄRIꢄDꢄPL[WXUHꢄRIꢄSURGXFWVꢄꢍUXQꢄQRꢈꢄꢀꢆꢄ HGꢄDERYHꢈꢄ:HꢄLVRODWHGꢄꢃꢈꢑꢉꢄJꢄRIꢄDꢄPL[WXUHꢄRIꢄSURGXFWVꢄ
7DEOHꢄꢀꢎꢈꢄ6HSDUDWLRQꢄRIꢄWKHꢄPL[WXUHꢄE\ꢄ7/&ꢄJDYHꢄꢄ ꢍUXQꢄQRꢈꢄꢊꢆꢄ7DEOHꢄꢀꢎꢈꢄ6HSDUDWLRQꢄRIꢄWKHꢄPL[WXUHꢄE\ꢄ7/&ꢄ
ꢃꢈꢀꢀꢄJꢄꢍꢃꢈꢐꢀꢄPPROꢆꢄꢁꢂOꢎꢄRIꢄFRPSRXQGꢄ,,,DꢄDQGꢄꢃꢈꢃꢐꢄJꢄ JDYHꢄꢃꢈꢀꢉꢄJꢄꢍꢃꢈꢑꢒꢄPPROꢆꢄꢁꢒOꢎꢄRIꢄFRPSRXQGꢄ,,,FꢄDQGꢄ
ꢍꢃꢈꢊꢐꢄPPROꢆꢄꢀꢉOꢎꢄRIꢄ,9Dꢈꢄ
ꢃꢈꢀꢀꢄJꢄꢍꢃꢈꢅꢑꢄPPROꢆꢄꢁꢃOꢎꢄRIꢄ,9Fꢈꢄ
&RPSRXQGꢄ,,,Dꢈꢄ5 ꢄꢃꢈꢑꢃꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄ
&RPSRXQGꢄ,,,Fꢈꢄ5 ꢄꢃꢈꢑꢃꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄ
ꢁꢁꢊꢉꢄFP ꢈꢄ +ꢄ105ꢄVSHFWUXPꢆꢄ ꢆꢄSSPꢓꢄꢃꢈꢁꢒꢄTXLQWꢄꢍꢁ+ꢆꢄ ꢁꢁꢁꢉꢄFP ꢈꢄ +ꢄ105ꢄVSHFWUXPꢆꢄ ꢆꢄSSPꢓꢄꢃꢈꢂꢑꢄWꢄꢍꢊ+ꢆꢄ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

3$17(/((9$ꢄꢄHWꢄDOꢈꢄ
ꢀꢁꢂꢑꢄ
&+ ꢎꢆꢄ ꢀꢈꢀꢉ±ꢀꢈꢅꢊꢄ Pꢄ >ꢀꢃ+ꢆꢄ ꢍ&+ ꢎ @ꢆꢄ ꢀꢈꢑꢐꢄ TXLQWꢄ ꢍꢁ+ꢆꢄ ꢐꢈꢉꢁꢄ Gꢄ ꢍꢀ+ꢆꢄ ꢑꢇ+ꢆꢄ ꢁꢄ +]ꢎꢈꢄ )RXQGꢓꢄ>0@ ꢄ ꢁꢑꢐꢈꢀꢒꢂꢒꢈꢄ
&+ ꢎꢆꢄꢁꢈꢂꢅꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢐꢈꢊꢂꢄWꢈGꢄꢍꢀ+ꢆꢄꢉꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄ & + 1ꢈꢄ&DOFXODWHGꢓꢄ0ꢄꢁꢑꢐꢈꢀꢒꢂꢐꢈꢄ
ꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢅꢑꢄGꢈGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢄ
5HDFWLRQꢀRIꢀUDGLFDOꢀDQLRQꢀ,,ꢀVRGLXPꢀVDOWꢀZLWKꢀ
ꢐꢈꢑꢀꢄWꢈGꢄꢍꢀ+ꢆꢄꢅꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢑꢂꢄGꢈGꢄꢍꢀ+ꢆꢄꢄ
ꢑꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢈꢄ)RXQGꢓꢄ>0@ ꢄꢁꢀꢉꢈꢀꢑꢑꢅꢈꢄ
& + 1ꢈꢄ&DOFXODWHGꢓꢄ0ꢄꢁꢀꢉꢈꢀꢑꢐꢅꢈꢄ
GRGHF\OꢀEURPLGHꢂꢄDꢈꢄ'RGHF\OꢄEURPLGHꢆꢄꢃꢈꢑꢁꢄJꢄꢄ
ꢍꢁꢈꢉꢄPPROꢎꢆꢄZDVꢄDGGHGꢄGURSZLVHꢄWRꢄDꢄVXVSHQVLRQꢄRIꢄ
UDGLFDOꢄDQLRQꢄ,,ꢄVDOWꢆꢄSUHSDUHGꢄE\ꢄDGGLWLRQꢄRIꢄꢃꢈꢀꢀꢄJꢄ
ꢍꢅꢈꢂꢄPPROꢎꢄRIꢄPHWDOOLFꢄVRGLXPꢄWRꢄDꢄPL[WXUHꢄRIꢄꢃꢈꢑꢅꢄJꢄ
ꢍꢉꢈꢃꢄ PPROꢎꢄ RIꢄ SKWKDORQLWULOHꢄ ꢍ,ꢎꢄ DQGꢄ ꢉꢃꢄ POꢄ RIꢄ OLTXLGꢄ
DPPRQLDꢈꢄ7KHꢄPL[WXUHꢄZDVꢄVWLUUHGꢄIRUꢄꢊꢄKꢄDWꢄ±ꢊꢉƒ&ꢄLQꢄ
DQꢄLQHUWꢄDWPRVSKHUHꢄDQGꢄZDVꢄWKHQꢄWUHDWHGꢄDVꢄGHVFULEHGꢄ
DERYHꢄ WRꢄ LVRODWHꢄ ꢀꢈꢊꢄ Jꢄ RIꢄ Dꢄ PL[WXUHꢄ RIꢄ SURGXFWVꢄ FRQꢇ
WDLQLQJꢄꢍDFFRUGLQJꢄWRꢄWKHꢄ*&±06ꢄGDWDꢎꢄꢁꢈꢊꢑꢄPPROꢄRIꢄ
GRGHF\Oꢄ EURPLGHꢆꢄ ꢃꢈꢐꢄ PPROꢄ RIꢄ LQLWLDOꢄ GLQLWULOHꢄ ,ꢆꢄꢄ
ꢃꢈꢃꢉꢄPPROꢄꢍꢁOꢎꢄRIꢄꢁꢇGRGHF\OEHQ]RQLWULOHꢆꢄꢃꢈꢀꢐꢄPPROꢄ
ꢍꢐOꢎꢄRIꢄꢅꢇGRGHF\OSKWKDORQLWULOHꢆꢄDQGꢄꢀꢈꢑꢑꢄPPROꢄꢍꢑꢒOꢎꢄ
RIꢄWULF\DQRELSKHQ\Oꢄ9,ꢄꢍWKHꢄ\LHOGVꢄZHUHꢄFDOFXODWHGꢄRQꢄ
WKHꢄ LQLWLDOꢄ PHWDOOLFꢄ VRGLXPꢄ ZLWKꢄ DFFRXQWꢄ WDNHQꢄ RIꢄ WKHꢄ
UHDFWLRQꢄVWRLFKLRPHWU\ꢔꢄVHHꢄ6FKHPHVꢄꢀꢄDQGꢄꢁꢎꢈꢄꢄ
&RPSRXQGꢄ,9Fꢈꢄ5 ꢄꢃꢈꢁꢃꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄꢄ
ꢁꢁꢊꢅꢄFP ꢈꢄ +ꢄ105ꢄVSHFWUXPꢆꢄ ꢆꢄSSPꢓꢄꢃꢈꢂꢉꢄWꢄꢍꢊ+ꢆꢄ
&+ ꢎꢆꢄꢀꢈꢀꢁ±ꢀꢈꢅꢃꢄPꢄ>ꢀꢃ+ꢆꢄꢍ&+ ꢎ @ꢆꢄꢀꢈꢑꢐꢄTXLQWꢄꢍꢁ+ꢆꢄ
&+ ꢎꢆꢄꢁꢈꢂꢃꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢐꢈꢐꢒꢄGꢈGꢄꢍꢀ+ꢆꢄꢉꢇ+ꢆꢄ- ꢄ ꢄꢒꢆꢄ- ꢄ ꢄ
ꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢒꢀꢄGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢒꢅꢄGꢄꢍꢀ+ꢆꢄꢄ
ꢑꢇ+ꢆꢄ - ꢄ ꢄ ꢒꢄ +]ꢎꢈꢄ )RXQGꢓꢄ >0@ ꢄ ꢁꢅꢃꢉꢈꢀꢑꢀꢂꢈꢄ & + 1 ꢈꢄ
&DOFXODWHGꢓꢄ0ꢄꢁꢅꢃꢈꢀꢑꢁꢑꢈꢄ
ꢆꢊꢈ+H[ꢊꢌꢊHQꢊꢅꢊ\OꢉEHQ]RQLWULOHꢀꢈ,,,GꢉꢄꢀꢋꢊꢈKH[ꢊꢌꢊHQꢊ
ꢅꢊ\OꢉSKWKDORQLWULOHꢀꢈ,9GꢉꢄꢀDQGꢀꢆꢄꢌꢊELVꢈKH[ꢊꢌꢊHQꢊꢅꢊꢀ
\OꢉEHQ]RQLWULOHꢀꢈ9Gꢉꢂꢄ+H[ꢇꢉꢇHQꢇꢀꢇ\OꢄEURPLGHꢆꢄꢃꢈꢊꢅꢄPOꢄ
ꢍꢁꢈꢉꢄ PPROꢎꢆꢄ ZDVꢄ DGGHGꢄ GURSZLVHꢄ WRꢄ Dꢄ VXVSHQVLRQꢄ RIꢄ
UDGLFDOꢄ DQLRQꢄ,,ꢄ VRGLXPꢄ VDOWꢆꢄ SUHSDUHGꢄ E\ꢄ DGGLWLRQꢄ RIꢄ
ꢃꢈꢀꢀꢄJꢄꢍꢅꢈꢂꢄPPROꢎꢄRIꢄPHWDOOLFꢄVRGLXPꢄWRꢄDꢄPL[WXUHꢄRIꢄ
ꢃꢈꢑꢅꢄ Jꢄ ꢍꢉꢈꢃꢄPPROꢎꢄ RIꢄ GLQLWULOHꢄ ,ꢄ DQGꢄ ꢉꢃꢄ POꢄ RIꢄ OLTXLGꢄ
DPPRQLDꢈꢄ7KHꢄVXEVHTXHQWꢄSURFHGXUHꢄZDVꢄVLPLODUꢄWRꢄ
WKDWꢄGHVFULEHGꢄDERYHꢈꢄ:HꢄLVRODWHGꢄꢃꢈꢑꢂꢄJꢄRIꢄDꢄPL[WXUHꢄ
RIꢄ SURGXFWVꢄ ꢍUXQꢄ QRꢈꢄ ꢅꢆꢄ7DEOHꢄ ꢀꢎꢈꢄ 6HSDUDWLRQꢄ RIꢄ WKHꢄ
PL[WXUHꢄ E\ꢄ7/&ꢄ JDYHꢄ ꢃꢈꢀꢉꢄ Jꢄ ꢍꢃꢈꢂꢀꢄ PPROꢆꢄ ꢊꢅOꢎꢄ RIꢄ
FRPSRXQGꢄ,,,GꢆꢄꢃꢈꢃꢂꢄJꢄꢍꢃꢈꢊꢂꢄPPROꢆꢄꢀꢑOꢎꢄRIꢄ,9GꢆꢄDQGꢄ
ꢃꢈꢃꢅꢄJꢄꢍꢃꢈꢀꢉꢄPPROꢆꢄꢑOꢎꢄRIꢄ9Gꢈꢄ
Eꢈꢄ$ꢄVROXWLRQꢄRIꢄꢃꢈꢑꢅꢄJꢄꢍꢉꢈꢃꢄPPROꢎꢄRIꢄGLQLWULOHꢄ,ꢄLQꢄ
ꢅꢃꢄPOꢄRIꢄDQK\GURXVꢄ7+)ꢄZDVꢄSXUJHGꢄZLWKꢄDUJRQꢄDQGꢄ
FRROHGꢄ WRꢄ ±ꢐꢃƒ&ꢆꢄ DQGꢄ ꢊꢃꢄ POꢄ RIꢄ DPPRQLDꢄ Z DVꢄ FRQꢇ
GHQVHGꢄWKHUHWRꢈꢄ0HWDOOLFꢄVRGLXPꢆꢄꢃꢈꢀꢀꢄJꢄꢍꢅꢈꢂꢄPPROꢎꢆꢄ
ZDVꢄ WKHQꢄ DGGHGꢄ XQGHUꢄ FRQWLQXRXVꢄ VWLUULQJꢄ LQꢄ DQꢄ LQHUWꢄ
DWPRVSKHUHꢆꢄWKHꢄPL[WXUHꢄZDVꢄVWLUUHGꢄXQWLOꢄWKHꢄDPPRQLDꢄ
YDSRUL]HGꢄ DQGꢄ WKHꢄ WHPSHUDWXUHꢄ EHFDPHꢄ HTXDOꢄ WRꢄ DPꢇ
ELHQWꢆꢄꢃꢈꢑꢁꢄJꢄꢍꢁꢈꢉꢄPPROꢎꢄRIꢄGRGHF\OꢄEURPLGHꢄZDVꢄ
DGGHGꢆꢄDQGꢄWKHꢄPL[WXUHꢄZDVꢄVWLUUHGꢄIRUꢄꢊꢄKꢄXQGHUꢄDUJRQꢄ
DQGꢄWUHDWHGꢄDVꢄGHVFULEHGꢄDERYHꢈꢄ:HꢄLVRODWHGꢄꢃꢈꢒꢒꢄJꢄRIꢄꢄ
Dꢄ PL[WXUHꢄ RIꢄ SURGXFWVꢄ FRQWDLQLQJꢄ ꢍDFFRUGLQJꢄ WRꢄ WKHꢄ
*&±06ꢄ GDWDꢎꢆꢄ ꢀꢈꢑꢄ PPROꢄ RIꢄ GRGHF\Oꢄ EURPLGHꢆꢄꢄ
ꢃꢈꢅꢄ PPROꢄ RIꢄ LQLWLDOꢄ GLQLWULOHꢄ ,ꢆꢄ ꢃꢈꢅꢄ PPROꢄ ꢍꢀꢐOꢎꢄ RIꢄꢄ
ꢁꢇGRGHF\OEHQ]RQLWULOHꢆꢄꢃꢈꢀꢃꢄPPROꢄꢍꢅOꢎꢄRIꢄꢅꢇGRGHF\Oꢇ
SKWKDORQLWULOHꢆꢄ DQGꢄꢃꢈꢂꢐꢄPPROꢄ ꢍꢊꢑOꢎꢄ RIꢄ WULF\DQRELꢇ
SKHQ\Oꢄ9,ꢈꢄꢄ
&RPSRXQGꢄ,,,Gꢈꢄ5 ꢄꢃꢈꢑꢃꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄ
ꢁꢁꢁꢅꢄ FP ꢈꢄ +ꢄ 105ꢄ VSHFWUXPꢆꢄ ꢆꢄ SSPꢓꢄ ꢀꢈꢊꢂ±ꢀꢈꢉꢉꢄ Pꢄ
ꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ ꢀꢈꢉꢒ±ꢀꢈꢐꢐꢄ ꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ ꢁꢈꢃꢀ±ꢁꢈꢀꢂꢄ Pꢄ ꢍꢁ+ꢆꢄ
&+ ꢎꢆꢄ ꢁꢈꢂꢅꢄ Wꢄ ꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ ꢅꢈꢂꢂ±ꢉꢈꢃꢂꢄ Pꢄ ꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ
ꢉꢈꢑꢂ±ꢉꢈꢒꢊꢄPꢄꢍꢀ+ꢆꢄ &+ꢎꢆꢄꢐꢈꢊꢂꢄWꢈGꢄꢍꢀ+ꢆꢄꢉꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄ
ꢀꢈꢉꢄ+]ꢄꢎꢆꢄꢐꢈꢅꢑꢄGꢈGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢄ
ꢐꢈꢑꢀꢄWꢈGꢄꢍꢀ+ꢆꢄꢅꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢐꢃꢄGꢈGꢄꢍꢀ+ꢆꢄꢄ
ꢑꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢈꢄ)RXQGꢓꢄ>0@ ꢄꢀꢂꢅꢈꢀꢀꢁꢐꢈꢄ
& + 1ꢈꢄ&DOFXODWHGꢓꢄ0ꢄꢀꢂꢅꢈꢀꢀꢁꢑꢈꢄ
5HDFWLRQꢀRIꢀUDGLFDOꢀDQLRQꢀ,,ꢀVRGLXPꢀVDOWꢀZLWKꢀꢀ
ꢅꢄꢌꢊGLEURPRSHQWDQHꢂꢄ ꢀꢆꢉꢇ'LEURPRSHQWDQHꢆꢄ ꢃꢈꢉꢐꢄ Jꢄ
ꢍꢁꢈꢉꢄPPROꢎꢆꢄZDVꢄDGGHGꢄGURSZLVHꢄWRꢄDꢄVXVSHQVLRQꢄRIꢄ
UDGLFDOꢄDQLRQꢄ,,ꢄVDOWꢆꢄSUHSDUHGꢄE\ꢄDGGLWLRQꢄRIꢄꢃꢈꢀꢀꢄJꢄ
ꢍꢅꢈꢂꢄPPROꢎꢄRIꢄPHWDOOLFꢄVRGLXPꢄWRꢄDꢄPL[WXUHꢄRIꢄꢃꢈꢑꢅꢄJꢄ
ꢍꢉꢈꢃꢄPPROꢎꢄRIꢄGLQLWULOHꢄ,ꢄDQGꢄꢐꢃꢄPOꢄRIꢄOLTXLGꢄDPPRQLDꢈꢄ
7KHꢄ PL[WXUHꢄ Z DVꢄ VWLUUHGꢄ IRUꢄ ꢀꢄKꢄ DWꢄ ±ꢊꢉƒ&ꢄ LQꢄ DQꢄ LQHUWꢄ
DWPRVSKHUHꢄ DQGꢄ ZDVꢄ WUHDWHGꢄ DVꢄ GHVFULEHGꢄ DERYHꢄ WRꢄ
LVRODWHꢄꢃꢈꢂꢀꢄJꢄRIꢄDꢄPL[WXUHꢄRIꢄSURGXFWVꢄFRQWDLQLQJꢄ
ꢍDFFRUGLQJꢄWRꢄWKHꢄ*&±06ꢄGDWDꢎꢆꢄꢃꢈꢊꢐꢄPPROꢄRIꢄꢀꢆꢉꢇGLꢇ
EURPRSHQWDQHꢆꢄ ꢊꢈꢅꢄ PPROꢄ RIꢄ LQLWLDOꢄ GLQLWULOHꢄ ,ꢆꢄ
ꢃꢈꢅꢅꢄPPROꢄ ꢍꢀꢂOꢎꢄ RIꢄ ꢁꢇꢍꢉꢇEURPRSHQW\OꢎEHQ]RQLWULOHꢄꢄ
&RPSRXQGꢄ,9Gꢈꢄ5 ꢄꢃꢈꢀꢉꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄ
ꢁꢁꢊꢅꢄ FP ꢈꢄ +ꢄ 105ꢄ VSHFWUXPꢆꢄ ꢆꢄ SSPꢓꢄ ꢀꢈꢊꢑ±ꢀꢈꢉꢀꢄ Pꢄ
ꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ ꢀꢈꢑꢀ±ꢀꢈꢐꢂꢄ ꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ ꢁꢈꢃꢃ±ꢁꢈꢀꢅꢄ Pꢄ ꢍꢁ+ꢆꢄ
&+ ꢎꢆꢄꢁꢈꢂꢁꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢅꢈꢂꢐ±ꢉꢈꢃꢉꢄPꢄꢍꢁ+ꢆꢄ &+ ꢎꢆꢄ
ꢉꢈꢑꢂ±ꢉꢈꢒꢁꢄ Pꢄ ꢍꢀ+ꢆꢄ &+ꢎꢆꢄ ꢐꢈꢂꢃꢄ GꢈGꢄ ꢍꢀ+ꢆꢄ ꢉꢇ+ꢆꢄ - ꢄ ꢄ ꢒꢆꢄꢄ
- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢒꢊꢄGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ- ꢄ ꢄꢀꢈꢉꢄ+]ꢎꢆꢄꢐꢈꢒꢑꢄGꢄ
ꢍꢀ+ꢆꢄꢑꢇ+ꢆꢄ- ꢄ ꢄꢒꢄ+]ꢎꢈꢄ)RXQGꢓꢄ>0@ ꢄꢁꢀꢃꢈꢀꢀꢑꢂꢈꢄ& + 1 ꢈꢄ
&DOFXODWHGꢓꢄ0ꢄꢁꢀꢃꢈꢀꢀꢉꢐꢈꢄ
&RPSRXQGꢄ 9Gꢈꢄ 5 ꢄ ꢃꢈꢐꢉꢈꢄ ,5ꢄ VSHFWUXPꢓꢄ ꢍ& 1ꢎꢄꢄ
ꢁꢁꢁꢅꢄ FP ꢈꢄ +ꢄ 105ꢄ VSHFWUXPꢆꢄ ꢆꢄ SSPꢓꢄ ꢀꢈꢊꢊ±ꢀꢈꢉꢁꢄ Pꢄ
ꢍꢅ+ꢆꢄ&+ ꢎꢆꢄꢀꢈꢉꢉ±ꢀꢈꢐꢉꢄPꢄꢍꢅ+ꢆꢄ&+ ꢎꢆꢄꢁꢈꢃꢊ±ꢁꢈꢀꢑꢄPꢄꢍꢅ+ꢆꢄ ꢍ0ꢄ ꢁꢉꢀꢎꢆꢄ ꢃꢈꢀꢅꢄ PPROꢄ ꢍꢑOꢎꢄ RIꢄ ꢅꢇꢍꢉꢇEURPRSHQW\Oꢎꢇ
&+ ꢎꢆꢄꢁꢈꢑꢉꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢁꢈꢂꢀꢄWꢄꢍꢁ+ꢆꢄ&+ ꢎꢆꢄꢅꢈꢂꢂ±ꢉꢈꢃꢑꢄPꢄ SKWKDORQLWULOHꢄꢍ0ꢄꢁꢐꢑꢎꢆꢄꢃꢈꢃꢉꢄPPROꢄꢍꢁOꢎꢄRIꢄꢁꢆꢉꢇELVꢇꢄ
ꢍꢅ+ꢆꢄ &+ ꢎꢆꢄꢉꢈꢐꢃ±ꢉꢈꢒꢁꢄPꢄꢍꢁ+ꢆꢄ &+ꢎꢆꢄꢐꢈꢊꢅꢄGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ ꢍꢉꢇEURPRSHQW\OꢎEHQ]RQLWULOHꢄ ꢍ0ꢄ ꢊꢒꢒꢎꢆꢄDQGꢄ ꢃꢈꢃꢉꢄ PPROꢄ
- ꢄ ꢄꢂꢄ+]ꢎꢆꢄꢐꢈꢅꢉꢄGꢈGꢄꢍꢀ+ꢆꢄꢅꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢁꢄ+]ꢎꢆꢄꢄ ꢍꢁOꢎꢄRIꢄWULF\DQRELSKHQ\Oꢄ9,ꢈꢄ,QꢄDGGLWLRQꢆꢄWKHꢄPL[WXUHꢄ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

5('8&7,9(ꢄꢄ$&7,9$7,21ꢄꢄ2)ꢄꢄ$5(1(6ꢓꢄꢄ;,;ꢈꢄꢄ
ꢀꢁꢂꢐꢄ
FRQWDLQHGꢄFRPSRXQGVꢄZLWKꢄ0ꢄꢁꢒꢒꢄꢍꢑOꢎꢆꢄꢅꢁꢁꢄꢍꢅOꢎꢆꢄDQGꢄ 6FLHQFHVꢄ ꢍSURMHFWꢄ QRꢈꢄ ꢅꢈꢀꢈꢒꢈꢎꢆꢄ DQGꢄ E\ꢄ WKHꢄ 5XVVLDQꢄ
ꢅꢁꢁꢄꢍꢀꢃOꢎꢈꢄ
ꢋꢊ%XW\OSKWKDORQLWULOHꢀ ꢈ,9Hꢉꢂꢄ %XW\Oꢄ EURPLGHꢆꢄꢄ
)RXQGDWLRQꢄ IRUꢄ %DVLFꢄ 5HVHDUFKꢄ ꢍSURMHFWꢄ QRꢈꢄ ꢃꢉꢇꢃꢊꢇ
ꢊꢁꢊꢃꢒDꢎꢈꢄ
ꢃꢈꢑꢑꢄPOꢄꢍꢑꢈꢊꢄPPROꢎꢆꢄZDVꢄDGGHGꢄGURSZLVHꢄWRꢄDꢄVXVSHQꢇ
VLRQꢄ RIꢄUDGLFDOꢄDQLRQꢄ,,ꢄVRGLXPꢄ VDOWꢆꢄ SUHSDUHGꢄ E\ꢄ
DGGLWLRQꢄ RIꢄ ꢃꢈꢁꢂꢄ ꢍꢀꢁꢈꢃꢄ PPROꢎꢄ RIꢄ PHWDOOLFꢄ VRGLXPꢄ WRꢄꢄ
Dꢄ PL[WXUHꢄ RIꢄ ꢀꢈꢑꢃꢄ Jꢄ ꢍꢀꢁꢈꢉꢄ PPROꢎꢄ RIꢄ GLQLWULOHꢄ ,ꢄ DQGꢄꢄ
ꢉꢃꢄPOꢄRIꢄOLTXLGꢄDPPRQLDꢈꢄ7KHꢄPL[WXUHꢄZDVꢄWKHQꢄWUHDWHGꢄ
DFFRUGLQJꢄ WRꢄ WKHꢄ JHQHUDOꢄ SURFHGXUHꢄ WRꢄ LVRODWHꢄ ꢃꢈꢀꢀꢄ Jꢄ
ꢍꢂOꢎꢄ RIꢄ WULF\DQRELSKHQ\Oꢄ 9,ꢄ DVꢄ Dꢄ VROLGꢄ PDWHULDOꢄ DQGꢄ
ꢀꢈꢃꢑꢄJꢄRIꢄDꢄPL[WXUHꢄRIꢄSURGXFWVꢄꢍUXQꢄQRꢈꢄꢐꢆꢄ7DEOHꢄꢀꢎꢈꢄꢄ
ꢅꢇ%XW\OSKWKDORQLWULOHꢄꢍ,9Hꢎꢄ ZDVꢄ LVRODWHGꢄ E\ꢄ FROXPQꢄ
FKURPDWRJUDSK\ꢄRQꢄVLOLFDꢄJHOꢄꢍꢁꢁꢃꢄJꢆꢄꢊîꢊꢃꢄFPꢎꢄXVLQJꢄ
KH[DQH±GLHWK\OꢄHWKHUꢄꢍꢒꢉꢓꢉꢆꢄE\ꢄYROXPHꢎꢄDVꢄHOXHQWꢈꢄ
<LHOGꢄꢃꢈꢀꢂꢄJꢄꢍꢃꢈꢒꢂꢄPPROꢆꢄ\LHOGꢄꢀꢑOꢆꢄSXULW\ꢄ!ꢒꢂOꢔꢄ
*/&ꢄGDWDꢎꢈꢄ7KHꢄVSHFWUDOꢄSDUDPHWHUVꢄFRLQFLGHGꢄZLWKꢄ
WKRVHꢄJLYHQꢄLQꢄ>ꢁ@ꢈꢄꢄ
5()(5(1&(6ꢄ
ꢄꢄꢀꢈꢄ 3DQWHOHHYDꢆꢄ(ꢈꢆꢄ6KFKHJROHYDꢆꢄ /ꢈꢆꢄ9\VRWVN\ꢆꢄ9ꢈꢆꢄ3RNURYꢇ
ꢄ
ꢄ
VN\ꢆꢄ/ꢈꢆꢄDQGꢄ6KWHLQJDUWVꢆꢄ9ꢈꢆꢄ (XUꢂꢀ-ꢂꢀ2UJꢂꢀ&KHPꢈꢆꢄꢁꢃꢃꢉꢆꢄꢄ
Sꢈꢄꢁꢉꢉꢂꢈꢄ
ꢄꢄꢁꢈꢄ %LO¶NLVꢆꢄ ,ꢈ,ꢈꢆꢄ 3DQWHOHHYDꢆꢄ (ꢈ9ꢈꢆꢄ DQGꢄ 6KWHLQJDUWVꢆꢄ 9ꢈ'ꢈꢆꢄ
5XVVꢂꢀ-ꢂꢀ2UJꢂꢀ&KHPꢈꢆꢄꢀꢒꢒꢂꢆꢄYROꢈꢄꢊꢅꢆꢄSꢈꢄꢀꢑꢊꢀꢈꢄ
ꢄꢄꢊꢈꢄ +DQDFNꢆꢄ0ꢈꢆꢄ+HFNPDQQꢆꢄ+ꢈꢆꢄDQGꢄ3ROOH\ꢆꢄ5ꢈꢆꢄ0HWKꢂꢀ2UJꢂꢀ
ꢄ
ꢀ
ꢄ
ꢀ
ꢄ
ꢄ
&KHPꢂꢀꢊ+RXEHQ±:HLOꢋꢆꢄꢀꢒꢒꢂꢆꢄYROꢈꢄ(ꢒGꢔꢄ0F.HRZQꢆꢄ1ꢈ%ꢈꢆꢄ
3KWKDORF\DQLQHꢀ 0DWHULDOVꢈꢀ 6\QWKHVLVꢁꢀ 6WUXFWXUHꢁꢀ DQGꢀ
)XQFWLRQꢆꢄ&DPEULGJHꢓꢄ&DPEULGJHꢄ8QLYꢈꢆꢄꢀꢒꢒꢂꢔꢄ0LNKDꢇ
OHQNRꢆꢄ6ꢈ$ꢈꢆꢄ%DUNDQRYDꢆꢄ6ꢈ9ꢈꢆꢄ/HEHGHYꢆꢄ2ꢈ/ꢈꢆꢄDQGꢄ/XN¶ꢇ
\DQHWVꢆꢄ(ꢈ$ꢈꢆꢄ=Kꢂꢀ2EVKFKꢂꢀ.KLPꢈꢆꢄꢀꢒꢐꢀꢆꢄYROꢈꢄꢅꢀꢆꢄSꢈꢄꢁꢐꢊꢉꢈꢄ
ꢄꢄꢅꢈꢄ 3KWKDORF\DQLQHVꢈꢀ 3URSHUWLHVꢀ DQGꢀ $SSOLFDWLRQVꢆꢄ /H]ꢇ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
QRIIꢆꢄ &ꢈ&ꢈꢄ DQGꢄ /HYHUꢆꢄ $ꢈ%ꢈ3ꢈꢆꢄ (GVꢈꢆꢄ 1HZꢄ <RUNꢓꢄ 9&+ꢆꢄ
ꢀꢒꢂꢒ±ꢀꢒꢒꢑꢆꢄ YROVꢈꢄ ꢀ±ꢅꢔꢄ -RKDQQVHQꢆꢄ 0ꢈꢄ DQGꢄ -RHUJHQꢇꢄ
VHQꢆꢄ .ꢈ$ꢈꢆꢄ -ꢂꢀ 2UJꢂꢀ &KHPꢈꢆꢄ ꢀꢒꢒꢅꢆꢄ YROꢈꢄ ꢉꢒꢆꢄ Sꢈꢄ ꢁꢀꢅꢔꢄꢄ
6LUOLQꢆꢄ6ꢈ&ꢈꢆꢄ3XUHꢀ$SSOꢂꢀ&KHPꢈꢆꢄꢀꢒꢂꢒꢆꢄYROꢈꢄꢑꢀꢆꢄSꢈꢄꢀꢑꢁꢉꢔꢄ
(PPHOLXVꢆꢄ 0ꢈꢆꢄ 3DZORZVNLꢆꢄ *ꢈꢆꢄ DQGꢄ 9ROOPDQQꢆꢄ +ꢈ:ꢈꢆꢄ
$QJHZꢂꢀ&KHPꢈꢆꢄꢀꢒꢂꢒꢆꢄYROꢈꢄꢀꢃꢀꢆꢄSꢈꢄꢀꢅꢐꢉꢈꢄ
'LPHUL]DWLRQꢀRIꢀUDGLFDOꢀDQLRQꢀ,,ꢂꢄ$ꢄVXVSHQVLRQꢄRIꢄ
UDGLFDOꢄDQLRQꢄ,,ꢄVDOWꢆꢄSUHSDUHGꢄDFFRUGLQJꢄWRꢄWKHꢄDERYHꢄ
SURFHGXUHꢆꢄZDVꢄVWLUUHGꢄDWꢄ±ꢊꢉƒ&ꢄIRUꢄDꢄUHTXLUHGꢄWLPHꢄDQGꢄ
ZDVꢄWKHQꢄWUHDWHGꢄDVꢄGHVFULEHGꢄDERYHꢄꢍIRUꢄUHDFWLRQꢄFRQꢇ
GLWLRQVꢄ DQGꢄ \LHOGVꢆꢄ VHHꢄ 7DEOHꢄ ꢁꢎꢈꢄ $FFRUGLQJꢄ WRꢄ WKHꢄꢄ
+ꢄ105ꢄDQGꢄ*&±06ꢄGDWDꢆꢄWKHꢄVROLGꢄPDWHULDOꢄVHSDUDWꢇ
HGꢄE\ꢄILOWUDWLRQꢄZDVꢄWULF\DQRELSKHQ\Oꢄ9,ꢆꢄZKLOHꢄWKHꢄ
HWKHUꢄH[WUDFWꢄFRQWDLQHGꢄFRPSRXQGꢄ9,ꢄDQGꢄGLQLWULOHꢄ,ꢈꢄ
ꢄꢄꢉꢈꢄ /XN¶\DQHWVꢆꢄ(ꢈ$ꢈꢆꢄ 5RVꢂꢀ.KLPꢂꢀ=KꢈꢆꢄꢀꢒꢒꢂꢆꢄYROꢈꢄꢅꢁꢆꢄSꢈꢄꢒꢔꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
%RQQHWWꢆꢄ 5ꢈꢆꢄ &KHPꢂꢀ 6RFꢂꢀ 5HYꢈꢆꢄ ꢀꢒꢒꢉꢆꢄ YROꢈꢄ ꢁꢅꢆꢄ Sꢈꢄ ꢀꢒꢔꢄ
9RO¶SLQꢆꢄ0ꢈ(ꢈꢆꢄ.UDLQRYDꢆꢄ1ꢈ<Xꢈꢆꢄ0RVNDOHYDꢆꢄ,ꢈ9ꢈꢆꢄ1RYRꢇ
GDURYDꢆꢄ *ꢈ1ꢈꢆꢄ 9RUR]KWVRYꢆꢄ *ꢈ1ꢈꢆꢄ *DO¶SHULQꢆꢄ 0ꢈ*ꢈꢆꢄꢄ
.DOL\Dꢆꢄ2ꢈ/ꢈꢆꢄ/XN¶\DQHWVꢆꢄ(ꢈ$ꢈꢆꢄDQGꢄ0LNKDOHQNRꢆꢄ6ꢈ$ꢈꢆꢄ
,]Yꢂꢀ 5RVVꢂꢀ $NDGꢂꢀ 1DXNꢁꢀ 6HUꢂꢀ .KLPꢈꢆꢄ ꢀꢒꢒꢑꢆꢄ Sꢈꢄ ꢁꢀꢃꢉꢔꢄ GHOꢄ
5H\ꢆꢄ %ꢈꢆꢄ .HOOHUꢆꢄ 8ꢈꢆꢄ 7RUUHVꢆꢄ 7ꢈꢆꢄ 5RMRꢆꢄ &ꢈꢆꢄ DQGꢄ $JXOORꢇ
/RSH]ꢆꢄ )ꢈꢆꢄ 0DUWLꢆꢄ &ꢈꢆꢄ %UDVVHOHWꢆꢄ 6ꢈꢆꢄ /HGRX[ꢆꢄ ,ꢈꢆꢄ DQGꢄꢄ
=\VVꢆꢄ-ꢈꢆꢄ-ꢂꢀ$Pꢂꢀ&KHPꢂꢀ6RFꢈꢆꢄꢀꢒꢒꢂꢆꢄYROꢈꢄꢀꢁꢃꢆꢄSꢈꢄꢀꢁꢂꢃꢂꢈꢄꢄ
%LSKHQ\OꢊꢆꢄꢇꢍꢄꢋꢍꢊWULFDUERQLWULOHꢀ ꢈ9,ꢉꢂꢄ 0HWDOOLFꢄ
OLWKLXPꢆꢄꢃꢈꢃꢂꢄJꢄꢍꢀꢀꢈꢀꢄPPROꢎꢆꢄZDVꢄDGGHGꢄLQꢄVPDOOꢄSLHFHVꢄ
WRꢄDꢄVXVSHQVLRQꢄRIꢄꢀꢈꢑꢅꢄJꢄꢍꢀꢁꢈꢃꢄPPROꢎꢄRIꢄGLQLWULOHꢄ,ꢄDQGꢄ
ꢅꢃꢄ POꢄ RIꢄ OLTXLGꢄ DPPRQLDꢄ XQGHUꢄ VWLUULQJꢄ DWꢄ ±ꢊꢊƒ&ꢄ LQꢄꢄ
DꢄVWUHDPꢄRIꢄJDVHRXVꢄDPPRQLDꢈꢄ7KHꢄUHVXOWLQJꢄGDUNꢄ
EURZQꢄVXVSHQVLRQꢄꢍFRQWDLQLQJꢄUDGLFDOꢄDQLRQꢄ,,ꢎꢄZDVꢄ
NHSWꢄ IRUꢄ ꢀꢄ Kꢄ XQGHUꢄ WKHꢄ VDPHꢄ FRQGLWLRQVꢆꢄ ꢉꢃꢄ POꢄ RIꢄ
GLHWK\Oꢄ HWKHUꢄ ZDVꢄ DGGHGꢆꢄ DQGꢄ WKHꢄ PL[WXUHꢄ ZDVꢄ VWLUUHGꢄ
XQWLOꢄWKHꢄ DPPRQLDꢄ YDSRUL]HGꢄ FRPSOHWHO\ꢈꢄ7KHꢄ UHVLGXHꢄ
Z DVꢄ WUHDWHGꢄ Z LWKꢄ ꢉꢃꢄ POꢄ RIꢄ Z DWHUꢆꢄ DQGꢄ WKHꢄ SUHFLSLWDWHꢄ
ZDVꢄ ILOWHUHGꢄ RIIꢆꢄ ZDVKHGꢄ LQꢄ VXFFHVVLRQꢄ ZLWKꢄ GLHWK\Oꢄ
HWKHUꢄDQGꢄZDWHUꢆꢄDQGꢄGULHGꢄLQꢄDLUꢈꢄ<LHOGꢄRIꢄFRPSRXQGꢄ
9,ꢄ ꢃꢈꢐꢊꢄ Jꢄ ꢍꢊꢈꢁꢄ PPROꢆꢄ ꢉꢂOꢎꢆꢄ PSꢄ ꢁꢉꢑ±ꢁꢉꢂƒ&ꢄ ꢍIURPꢄ
HWKDQROꢎꢈꢄ,5ꢄVSHFWUXPꢓꢄ ꢍ& 1ꢎꢄꢁꢁꢁꢐꢄFP ꢈꢄ +ꢄ105ꢄ
VSHFWUXPꢆꢄ ꢆꢄSSPꢓꢄꢐꢈꢐꢊꢄWꢈGꢄꢍꢀ+ꢆꢄꢅꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢁꢄ+]ꢎꢆꢄ
ꢐꢈꢐꢒꢄGꢈGꢄꢍꢀ+ꢆꢄꢑꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢁꢄ+]ꢎꢆꢄꢐꢈꢂꢒꢄWꢈGꢄꢍꢀ+ꢆꢄꢄ
ꢉꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢁꢄ+]ꢎꢆꢄꢐꢈꢒꢂꢄGꢈGꢄꢍꢀ+ꢆꢄꢊꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄ
ꢁꢄ+]ꢎꢆꢄꢂꢈꢁꢀꢄGꢈGꢄꢍꢀ+ꢆꢄꢑꢋꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢁꢄ+]ꢎꢆꢄꢂꢈꢁꢉꢄGꢈGꢄ
ꢍꢀ+ꢆꢄꢉꢋꢇ+ꢆꢄ- ꢄ ꢄꢂꢆꢄ- ꢄ ꢄꢃꢈꢂꢄ+]ꢎꢆꢄꢂꢈꢊꢅꢄGꢈGꢄꢍꢀ+ꢆꢄꢁꢋꢇ+ꢆꢄꢄ
- ꢄ ꢄꢁꢆꢄ- ꢄ ꢄꢃꢈꢂꢄ+]ꢎꢈꢄ)RXQGꢓꢄ>0@ ꢄꢁꢁꢒꢈꢃꢑꢊꢒꢈꢄ& + 1 ꢈꢄ
&DOFXODWHGꢓꢄ0ꢄꢁꢁꢒꢈꢃꢑꢊꢒꢈꢄ
ꢄꢄꢑꢈꢄ 1HZFRPEꢆꢄ0ꢈꢄDQGꢄ*OHQQꢆꢄ$ꢈꢆꢄ-ꢂꢀ$Pꢂꢀ&KHPꢂꢀ6RFꢈꢆꢄꢀꢒꢂꢒꢆꢄ
YROꢈꢄꢀꢀꢀꢆꢄSꢈꢄꢁꢐꢉꢈꢄ
ꢄꢄꢐꢈꢄ 1HZFRPEꢆꢄ0ꢈꢄDQGꢄ&XUUDQꢆꢄ'ꢈ3ꢈꢆꢄ$FFꢂꢀ&KHPꢂꢀ5HVꢈꢆꢄꢀꢒꢂꢂꢆꢄ
YROꢈꢄꢁꢀꢆꢄSꢈꢄꢁꢃꢑꢈꢄ
ꢄꢄꢂꢈꢄ %LO¶NLVꢆꢄ ,ꢈ,ꢈꢆꢄ 3DQWHOHHYDꢆꢄ (ꢈ9ꢈꢆꢄ 7DQDQDNLQꢆꢄ $ꢈ3ꢈꢆꢄ DQGꢄ
6KWHLQJDUWVꢆꢄ9ꢈ'ꢈꢆꢄ=Kꢂꢀ2UJꢂꢀ.KLPꢈꢆꢄꢀꢒꢒꢅꢆꢄYROꢈꢄꢊꢃꢆꢄSꢈꢄꢂꢂꢁꢈꢄ
ꢄꢄꢒꢈꢄ *DUVWꢆꢄ -ꢈ)ꢈꢄ DQGꢄ 6PLWKꢆꢄ &ꢈ'ꢈꢆꢄ -ꢂꢀ$Pꢂꢀ &KHPꢂꢀ 6RFꢈꢆꢄ ꢀꢒꢐꢑꢆꢄ
YROꢈꢄꢒꢂꢆꢄSꢈꢄꢀꢉꢁꢃꢈꢄ
ꢀꢃꢈꢄ %LO¶NLVꢆꢄ ,ꢈ,ꢈꢆꢄ 3DQWHOHHYDꢆꢄ (ꢈ9ꢈꢆꢄ 7DQDQDNLQꢆꢄ $ꢈ3ꢈꢆꢄ DQGꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
ꢄ
6KWHLQJDUWVꢆꢄ 9ꢈ'ꢈꢆꢄ 5XVVꢂꢀ -ꢂꢀ 2UJꢂꢀ &KHPꢈꢆꢄ ꢀꢒꢒꢐꢆꢄ YROꢈꢄ ꢊꢊꢆꢄꢄ
Sꢈꢄꢑꢉꢁꢈꢄ
ꢀꢀꢈꢄ %LO¶NLVꢆꢄ,ꢈ,ꢈꢆꢄ9DJDQRYDꢆꢄ7ꢈ$ꢈꢆꢄ%RE\OHYDꢆꢄ9ꢈ,ꢈꢆꢄDQGꢄ6KWHLQꢇ
JDUWVꢆꢄ9ꢈ'ꢈꢆꢄ5XVVꢂꢀ-ꢂꢀ2UJꢂꢀ&KHPꢈꢆꢄꢀꢒꢒꢀꢆꢄYROꢈꢄꢁꢐꢆꢄSꢈꢄꢅꢂꢈꢄ
ꢀꢁꢈꢄ 6HUWHOꢆꢄ0ꢈꢆꢄ<LOGL]ꢆꢄ$ꢈꢆꢄ*DPEHUWꢆꢄ5ꢈꢆꢄDQGꢄ%DXPJDUWHOꢆꢄ+ꢈꢆꢄ
ꢄ
ꢄ
ꢄ
ꢀ
ꢄ
ꢀ
ꢄ
ꢀ
(OHFWURFKHPꢂꢀ$FWDꢆꢄꢀꢒꢂꢑꢆꢄYROꢈꢄꢊꢀꢆꢄSꢈꢄꢀꢁꢂꢐꢔꢄ*HQQDURꢆꢄ$ꢈꢆꢄ
0DUDQꢆꢄ )ꢈꢆꢄ 0D\Hꢆꢄ$ꢈꢆꢄ DQGꢄ9LDQHOORꢆꢄ (ꢈꢆꢄ -ꢂꢀ (OHFWURDQDOꢂꢀ
&KHPꢈꢆꢄ ꢀꢒꢂꢉꢆꢄ YROꢈꢄ ꢀꢂꢉꢆꢄ Sꢈꢄ ꢊꢉꢊꢔꢄ *HQQDURꢆꢄ $ꢈꢆꢄ 5RPDꢇꢄ
QLQꢆꢄ$ꢈ0ꢈꢆꢄ6HYHULQꢆꢄ0ꢈ*ꢈꢆꢄDQGꢄ9LDQHOORꢆꢄ(ꢈꢆꢄ-ꢂꢀ(OHFWURꢇ
DQDOꢂꢀ &KHPꢈꢆꢄ ꢀꢒꢂꢅꢆꢄ YROꢈꢄ ꢀꢑꢒꢆꢄ Sꢈꢄ ꢁꢐꢒꢔꢄ *HQQDURꢆꢄ $ꢈꢆꢄꢄ
0D\Hꢆꢄ $ꢈꢆꢄ 0DUDQꢆꢄ )ꢈꢆꢄ DQGꢄ 9LDQHOORꢆꢄ (ꢈꢆꢄ (OHFWURFKLPꢂꢀ
$FWDꢆꢄꢀꢒꢂꢂꢆꢄYROꢈꢄꢊꢊꢆꢄSꢈꢄꢀꢑꢐꢈꢄ
7KLVꢄ VWXG\ꢄ ZDVꢄ SHUIRUPHGꢄ XQGHUꢄ ILQDQFLDOꢄ VXSSRUWꢄ
E\ꢄ WKHꢄ *RYHUQPHQWꢄ RIꢄ0RVFRZ ꢆꢄ E\ꢄ WKHꢄ 'LYLVLRQꢄ RIꢄ
&KHPLVWU\ꢄDQGꢄ0DWHULDOVꢄ6FLHQFHꢆꢄ5XVVLDQꢄ$FDGHP\ꢄRIꢄ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ

3$17(/((9$ꢄꢄHWꢄDOꢈꢄ
ꢀꢁꢂꢂꢄ
ꢀꢑꢈꢄ )LHOGVꢆꢄ (ꢈ.ꢈꢆꢄ 86ꢄ 3DWHQWꢄ QRꢈꢄ ꢊꢒꢐꢃꢑꢉꢂꢆꢄ ꢀꢒꢐꢑꢔꢄ &KHPꢂꢀ
$EVWUꢈꢆꢄꢀꢒꢐꢐꢆꢄYROꢈꢄꢂꢑꢆꢄQRꢈꢄ3ꢀꢊꢒꢑꢉꢃꢈꢄ
ꢀꢐꢈꢄ 0DO\NKLQꢆꢄ(ꢈ9ꢈꢆꢄ0DPDW\XNꢆꢄ9ꢈ,ꢈꢆꢄDQGꢄ6KWHLQJDUWVꢆꢄ9ꢈ'ꢈꢆꢄ
ꢀꢊꢈꢄ 6PLWKꢆꢄ+ꢈꢆꢄ2UJDQLFꢀ5HDFWLRQVꢀLQꢀ/LTXLGꢀ$PPRQLDꢆꢄ1HZꢄ
ꢀ
ꢄ
ꢄ
ꢄ
ꢀ
<RUNꢓꢄ :LOH\ꢆꢄ ꢀꢒꢑꢊꢔꢄ %LO¶NLVꢆꢄ ,ꢈ,ꢈꢆꢄ 6HOLYDQRYꢆꢄ %ꢈ$ꢈꢆꢄ DQGꢄ
6KWHLQJDUWVꢆꢄ9ꢈ'ꢈꢆꢄ=Kꢂꢀ2UJꢂꢀ.KLPꢈꢆꢄꢀꢒꢂꢑꢆꢄYROꢈꢄꢁꢁꢆꢄSꢈꢄꢐꢒꢅꢔꢄ
6HOLYDQRYꢆꢄ %ꢈ$ꢈꢄ DQGꢄ 6KWHLQJDUWVꢆꢄ 9ꢈ'ꢈꢆꢄ 5XVVꢂꢀ -ꢂꢀ 2UJꢂꢀ
&KHPꢈꢆꢄꢁꢃꢃꢀꢆꢄYROꢈꢄꢊꢐꢆꢄSꢈꢄꢀꢐꢀꢒꢈꢄ
ꢄ
ꢄ
,]Yꢂꢀ 6LEꢂꢀ 2WGꢂꢀ $NDGꢂꢀ 1DXNꢀ 6665ꢁꢀ 6HUꢂꢀ .KLPꢈꢆꢄ ꢀꢒꢐꢒꢆꢄꢄ
QRꢈꢄꢀꢁꢆꢄSꢈꢄꢀꢅꢉꢈꢄ
ꢀꢂꢈꢄ 'LFWLRQDU\ꢀ RIꢀ 2UJDQLFꢀ &RPSRXQGVꢆꢄ +HLOEURQꢆꢄ -ꢈꢄ DQGꢄ
ꢀꢅꢈꢄ 6LHJHꢆꢄ :ꢈ2ꢈꢆꢄ )HUULVꢆꢄ )ꢈ&ꢈꢆꢄ DQGꢄ 0XFFLꢆꢄ 3ꢈ$ꢈꢆꢄ -ꢂꢀ 2UJꢂꢀ
&KHPꢈꢆꢄꢀꢒꢐꢐꢆꢄYROꢈꢄꢅꢁꢆꢄSꢈꢄꢊꢅꢅꢁꢈꢄ
ꢄ
ꢄ
%XQEXU\ꢆꢄ+ꢈ0ꢈꢆꢄ(GVꢈꢆꢄ/RQGRQꢓꢄ(\UHꢄDQGꢄ6SRWWLVZRRGHꢆꢄ
ꢀꢒꢅꢊꢆꢄYROꢈꢄꢊꢆꢄSꢈꢄꢅꢐꢒꢈꢄ
ꢀ
ꢀꢉꢈꢄ )LVFKHUꢆꢄ 7ꢈ+ꢈꢄ DQGꢄ 0HLHUKRHIHUꢆꢄ $ꢈ:ꢈꢆꢄ -ꢂꢀ 2UJꢂꢀ &KHPꢈꢆꢄ
ꢀꢒꢐꢂꢆꢄYROꢈꢄꢅꢊꢆꢄSꢈꢄꢁꢁꢃꢈꢄ
ꢀꢒꢈꢄ $OGULFKꢀ&DWDORJXHꢌ+DQGERRNꢀRIꢀ)LQHꢀ&KHPLFDOVꢆꢄꢁꢃꢃꢁ±
ꢄ ꢁꢃꢃꢊꢈꢄ
ꢄ
5866,$1ꢄꢄ-2851$/ꢄꢄ2)ꢄꢄ25*$1,&ꢄꢄ&+(0,675<ꢄꢄꢄ9ROꢈꢄꢄꢅꢁꢄꢄꢄ1Rꢈꢄꢄꢒꢄꢄꢄꢁꢃꢃꢑꢄ