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The Fund Managers expect this combination of positive market conditions to remain favorable for generating attractive returns in the biopharmaceutical sector for the foreseeable future. Although industry returns have been characterized by inconsistency and generally associated with long timelines, a small number of top investors have been able to consistently build portfolios that outperform the venture capital industry and relevant public market indices. There is no substitute for experience in this sector, and the New Leaf team brings one of the most powerful and proven combinations of team, strategy, and track record to investing in this dynamic sector, and is positioned well for continued success in NLV-III.

INFORMATION CONVERGENCE INVESTMENT STRATEGY

The Fund Managers believe that U.S. is rapidly approaching a fiscal crisis that will be driven largely by rising healthcare expenditures and the exponential increase in future healthcare liabilities. This looming threat is a major driver behind Information Convergence ("I.C."), the second of the two primary focus areas in NLV-III. Governments and the private sector alike are being forced to significantly increase the efficiency of the healthcare system, and consequently are beginning to invest heavily in technologies that reduce cost and improve the quality of care. New technology solutions are emerging from the intersection of a diverse, yet interconnected set of technologies that define Information Convergence, including cloud storage, mobile computing, wireless communications, web-delivered software, big data analytics, diagnostics and sensors.

I.C. companies are integrating these technologies in ways that more cost effectively prevent, diagnose, and treat disease. These applications and products can be highly valued by addressing costly inefficiencies within the healthcare system. The Fund Managers believe I.C. will play an enabling role in many of the initiatives that will form the core of healthcare reform, including the transformation of healthcare reimbursement models from volume to value-based, and that this will be a major area of opportunity for investors for the foreseeable future.

Within I.C. the Fund will seek opportunities that target some of the largest inefficiencies in the healthcare system. These include: (1) inefficiency in delivery of care and excess administrative costs; (2) unnecessary services and missed opportunities for prevention; and (3) inflated pricing and fraud. Coming out of these large, identified problem areas are a number of discrete investable themes. These are the primary target of New Leaf's investment strategy in I.C. and they include the following:

Problem Area: Inefficient Delivery and Excess Administrative Costs

• Investment Theme - Operational & Care Delivery Efficiency: Process improvement and optimization can only occur when data is available to identify the problems and measure the impact of solutions. With shrinking margins and shifting value objectives, healthcare providers are under pressure to understand and improve their businesses and operations. Technologies that allow the collection and analysis of relevant data on the efficiency of care-delivery will be foundational to this evolution. AwarePoint (NLV-II) delivers enterprise awareness solutions for the hospital and other healthcare facilities, is an example of a company fitting this theme.

38 CONTROL NUMBER 257 - CONFIDENTIAL

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