The New Leaf team applies a rigorous, systematic, fundamentals-driven approach to diligence

The New Leaf team applies a rigorous, systematic, fundamentals-driven approach to diligence on all new deals, which, in addition to assessment against the sector specific strategies, includes consideration of the following risk/ reward factors: e Medical need and market size e Competing therapies, both drugs and devices e Strength of intellectual property e Ease of physician adoption of new therapy e Specific details of clinical trial design and trial execution risks e Regulatory and reimbursement risks across relevant geographies e Management team’s ability to both execute the business plan and the exit e Time and money required to reach next important milestone(s) e Likely exit; potential acquirers, IPO prospects. The Fund Managers will continue their proven investment philosophy and investment process, which emphasizes a team approach to proactive deal sourcing, rigorous investment analysis, significant involvement with portfolio companies and active management of investments and exits, and a focus on key “risk inflection” points based on the disease and technology. Investments will include both development stage and start-up stage companies, as well as growth equity or expansion capital investment in NLV-III’s targeted sectors, in the private and public markets. The Fund Managers have a long history of separating the roles of transaction finder, negotiating/ closing the transaction, and board member, as needed. New Leaf seeks to put the most appropriate investment professional on the board of companies, based on experience. The Fund Managers have fostered a culture that discourages any professional from feeling the need to control all aspects of an investment. Credit is given for each professional's role, and for each team member's ability to be a team player. New Leaf seeks to avoid “lone ranger” behavior and instead actively implements a team approach. The Fund Managers intend to create a very selective portfolio of 24 to 28 companies, which will include a balanced mix of investments in private companies and small capitalization public companies. The targeted portfolio is expected to be diversified across biopharmaceuticals (50 - 60%), information convergence (up to 25%), and the remainder across investments in later stage medical device and biological tools and infrastructure companies. While the Fund Managers believe this distribution of investments is the most likely outcome, it also intends to take full advantage of pricing discontinuities should they emerge in any of the identified sectors of interest, possibly resulting in variance from this targeted allocation. 44 CONTROL NUMBER 257 - CONFIDENTIAL HOUSE_OVERSIGHT_024055