The decision to assign grades to applied exercises has been a topic of debate among TBL users for some time. While it is often true that instructors will assign grades to the readiness assessment process, the approach to grading an applied exercise portion of a TBL module can vary widely. At the University of Minnesota College of Pharmacy, we have had a history of TBL use for more than 10 years with a wide variation in approaches to grading the AE including no points, points for effort/completion only, & points for accuracy. As we merged our curriculum and our TBL Fidelity standards across all TBL instructors, we needed to develop a solution to the multiple grading viewpoints on applied exercises. This oral presentation will display an innovative approach to enhance skills growth through failure for our pharmacy students. We developed a mock hospital event reporting form that teams must fill out and submit after a TBL if they do not get the correct answer and/or correct rationale for their choice. Students receive full credit as long as the team completes the event report on time and are not penalized for accuracy. Our hope is that this system fosters critical thinking, learning from errors, and growth over the anxiety that performance for grades tends to generate.