5HFRJQL]HGDVDQ
$PHULFDQ1DWLRQDO6WDQGDUG$16,
,(((6WG
,(((6WDQGDUG+DUGZDUH'HVFULSWLRQ
/DQJXDJH%DVHGRQWKH9HULORJŠ
+DUGZDUH'HVFULSWLRQ/DQJXDJH
6SRQVRU
'HVLJQ$XWRPDWLRQ6WDQGDUGV&RPPLWWHH
RIWKH
,(((&RPSXWHU6RFLHW\
$SSURYHG'HFHPEHU
,(((6WDQGDUGV%RDUG
$SSURYHG$XJXVW
$PHULFDQ1DWLRQDO6WDQGDUGV,QVWLWXWH
$EVWUDFW7KH9HULORJŠ+DUGZDUH'HVFULSWLRQ/DQJXDJH+'/LVGHILQHG9HULORJ+'/LVDIRUPDO
QRWDWLRQLQWHQGHGIRUXVHLQDOOSKDVHVRIWKHFUHDWLRQRIHOHFWURQLFV\VWHPV%HFDXVHLWLVERWKPD
FKLQHUHDGDEOHDQGKXPDQUHDGDEOHLWVXSSRUWVWKHGHYHORSPHQWYHULILFDWLRQV\QWKHVLVDQGWHVW
LQJ RI KDUGZDUH GHVLJQV WKH FRPPXQLFDWLRQ RI KDUGZDUH GHVLJQ GDWD DQG WKH PDLQWHQDQFH
PRGLILFDWLRQDQGSURFXUHPHQWRIKDUGZDUH7KHSULPDU\DXGLHQFHVIRUWKLVVWDQGDUGDUHWKHLPSOH
PHQWRUVRIWRROVVXSSRUWLQJWKHODQJXDJHDQGDGYDQFHGXVHUVRIWKHODQJXDJH
.H\ZRUGV FRPSXWHUFRPSXWHUODQJXDJHVHOHFWURQLFV\VWHPVGLJLWDOV\VWHPVKDUGZDUHKDUG
ZDUHGHVLJQKDUGZDUHGHVFULSWLRQODQJXDJHV+'/SURJUDPPLQJODQJXDJHLQWHUIDFH3/,9HULORJ
+'/9HULORJ3/,9HULORJŠ
7KH,QVWLWXWHRI(OHFWULFDODQG(OHFWURQLFV(QJLQHHUV,QF
(DVWWK6WUHHW1HZ<RUN1<86$
&RS\ULJKW‹E\WKH,QVWLWXWHRI(OHFWULFDODQG(OHFWURQLFV(QJLQHHUV,QF
$OOULJKWVUHVHUYHG3XEOLVKHG3ULQWHGLQWKH8QLWHG6WDWHVRI$PHULFD
,6%1
1RSDUWRIWKLVSXEOLFDWLRQPD\EHUHSURGXFHGLQDQ\IRUPLQDQHOHFWURQLFUHWULHYDOV\VWHPRURWKHUZLVHZLWKRXWWKHSULRU
ZULWWHQSHUPLVVLRQRIWKHSXEOLVKHU
,(((6WDQGDUGVGRFXPHQWVDUHGHYHORSHGZLWKLQWKH7HFKQLFDO&RPPLWWHHVRIWKH,(((6RFLHWLHV
DQGWKH6WDQGDUGV&RRUGLQDWLQJ&RPPLWWHHVRIWKH,(((6WDQGDUGV%RDUG0HPEHUVRIWKHFRP
PLWWHHVVHUYHYROXQWDULO\DQGZLWKRXWFRPSHQVDWLRQ7KH\DUHQRWQHFHVVDULO\PHPEHUVRIWKH,QVWL
WXWH 7KH VWDQGDUGV GHYHORSHG ZLWKLQ ,((( UHSUHVHQW D FRQVHQVXV RI WKH EURDG H[SHUWLVH RQ WKH
VXEMHFWZLWKLQWKH,QVWLWXWHDVZHOODVWKRVHDFWLYLWLHVRXWVLGHRI,(((WKDWKDYHH[SUHVVHGDQLQWHU
HVWLQSDUWLFLSDWLQJLQWKHGHYHORSPHQWRIWKHVWDQGDUG
8VHRIDQ,(((6WDQGDUGLVZKROO\YROXQWDU\7KHH[LVWHQFHRIDQ,(((6WDQGDUGGRHVQRWLPSO\
WKDWWKHUHDUHQRRWKHUZD\VWRSURGXFHWHVWPHDVXUHSXUFKDVHPDUNHWRUSURYLGHRWKHUJRRGVDQG
VHUYLFHV UHODWHG WR WKH VFRSH RI WKH ,((( 6WDQGDUG )XUWKHUPRUH WKH YLHZSRLQW H[SUHVVHG DW WKH
WLPHDVWDQGDUGLVDSSURYHGDQGLVVXHGLVVXEMHFWWRFKDQJHEURXJKWDERXWWKURXJKGHYHORSPHQWVLQ
WKHVWDWHRIWKHDUWDQGFRPPHQWVUHFHLYHGIURPXVHUVRIWKHVWDQGDUG(YHU\,(((6WDQGDUGLVVXE
MHFWHGWRUHYLHZDWOHDVWHYHU\ÀYH\HDUVIRUUHYLVLRQRUUHDIÀUPDWLRQ:KHQDGRFXPHQWLVPRUH
WKDQ ÀYH \HDUV ROG DQG KDV QRW EHHQ UHDIÀUPHG LW LV UHDVRQDEOH WR FRQFOXGH WKDW LWV FRQWHQWV
DOWKRXJKVWLOORIVRPHYDOXHGRQRWZKROO\UHÁHFWWKHSUHVHQWVWDWHRIWKHDUW8VHUVDUHFDXWLRQHGWR
FKHFNWRGHWHUPLQHWKDWWKH\KDYHWKHODWHVWHGLWLRQRIDQ\,(((6WDQGDUG
&RPPHQWV IRU UHYLVLRQ RI ,((( 6WDQGDUGV DUH ZHOFRPH IURP DQ\ LQWHUHVWHG SDUW\ UHJDUGOHVV RI
PHPEHUVKLSDIÀOLDWLRQZLWK,(((6XJJHVWLRQVIRUFKDQJHVLQGRFXPHQWVVKRXOGEHLQWKHIRUPRID
SURSRVHGFKDQJHRIWH[WWRJHWKHUZLWKDSSURSULDWHVXSSRUWLQJFRPPHQWV
,QWHUSUHWDWLRQV2FFDVLRQDOO\TXHVWLRQVPD\DULVHUHJDUGLQJWKHPHDQLQJRISRUWLRQVRIVWDQGDUGVDV
WKH\UHODWHWRVSHFLÀFDSSOLFDWLRQV:KHQWKHQHHGIRULQWHUSUHWDWLRQVLVEURXJKWWRWKHDWWHQWLRQRI
,(((WKH,QVWLWXWHZLOOLQLWLDWHDFWLRQWRSUHSDUHDSSURSULDWHUHVSRQVHV6LQFH,(((6WDQGDUGVUHS
UHVHQWDFRQVHQVXVRIDOOFRQFHUQHGLQWHUHVWVLWLVLPSRUWDQWWRHQVXUHWKDWDQ\LQWHUSUHWDWLRQKDV
DOVRUHFHLYHGWKHFRQFXUUHQFHRIDEDODQFHRILQWHUHVWV)RUWKLVUHDVRQ,(((DQGWKHPHPEHUVRILWV
WHFKQLFDOFRPPLWWHHVDUHQRWDEOHWRSURYLGHDQLQVWDQWUHVSRQVHWRLQWHUSUHWDWLRQUHTXHVWVH[FHSWLQ
WKRVHFDVHVZKHUHWKHPDWWHUKDVSUHYLRXVO\UHFHLYHGIRUPDOFRQVLGHUDWLRQ
&RPPHQWVRQVWDQGDUGVDQGUHTXHVWVIRULQWHUSUHWDWLRQVVKRXOGEHDGGUHVVHGWR
6HFUHWDU\,(((6WDQGDUGV%RDUG
+RHV/DQH
32%R[
3LVFDWDZD\1-
86$
1RWH$WWHQWLRQLVFDOOHGWRWKHSRVVLELOLW\WKDWLPSOHPHQWDWLRQRIWKLVVWDQGDUGPD\
UHTXLUHXVHRIVXEMHFWPDWWHUFRYHUHGE\SDWHQWULJKWV%\SXEOLFDWLRQRIWKLVVWDQGDUG
QRSRVLWLRQLVWDNHQZLWKUHVSHFWWRWKHH[LVWHQFHRUYDOLGLW\RIDQ\SDWHQWULJKWVLQ
FRQQHFWLRQWKHUHZLWK7KH,(((VKDOOQRWEHUHVSRQVLEOHIRULGHQWLI\LQJDOOSDWHQWVIRU
ZKLFKDOLFHQVHPD\EHUHTXLUHGE\DQ,(((VWDQGDUGRUIRUFRQGXFWLQJLQTXLULHVLQWR
WKHOHJDOYDOLGLW\RUVFRSHRIWKRVHSDWHQWVWKDWDUHEURXJKWWRLWVDWWHQWLRQ
$XWKRUL]DWLRQ WR SKRWRFRS\ SRUWLRQV RI DQ\ LQGLYLGXDO VWDQGDUG IRU LQWHUQDO RU SHUVRQDO XVH LV
JUDQWHGE\WKH,QVWLWXWHRI(OHFWULFDODQG(OHFWURQLFV(QJLQHHUV,QFSURYLGHGWKDWWKHDSSURSULDWH
IHHLVSDLGWR&RS\ULJKW&OHDUDQFH&HQWHU7RDUUDQJHIRUSD\PHQWRIOLFHQVLQJIHHSOHDVHFRQWDFW
&RS\ULJKW&OHDUDQFH&HQWHU&XVWRPHU6HUYLFH5RVHZRRG'ULYH'DQYHUV0$86$
3HUPLVVLRQWRSKRWRFRS\SRUWLRQVRIDQ\LQGLYLGXDOVWDQGDUGIRUHGXFDWLRQDOFODVV
URRPXVHFDQDOVREHREWDLQHGWKURXJKWKH&RS\ULJKW&OHDUDQFH&HQWHU
,QWURGXFWLRQ
7KLVLQWURGXFWLRQLVQRWDSDUWRI,(((6WG,(((6WDQGDUG+DUGZDUH'HVFULSWLRQ/DQJXDJH%DVHGRQWKH
9HULORJŠ+DUGZDUH'HVFULSWLRQ/DQJXDJH
7KH 9HULORJŠ +DUGZDUH 'HVFULSWLRQ /DQJXDJH 9HULORJ +'/ ZDV GHVLJQHG WR EH VLPSOH LQWXLWLYH DQG
HIIHFWLYHDWPXOWLSOHOHYHOVRIDEVWUDFWLRQLQDVWDQGDUGWH[WXDOIRUPDWIRUDYDULHW\RIGHVLJQWRROVLQFOXGLQJ
YHULÀFDWLRQVLPXODWLRQWLPLQJDQDO\VLVWHVWDQDO\VLVDQGV\QWKHVLV7KH9HULORJ+'/ZDVGHVLJQHGE\3KLO
0RRUE\GXULQJWKHZLQWHURI²DQGLWZDVLQWURGXFHGLQWRWKH('$PDUNHWLQDVWKHFRUQHU
VWRQHRIDYHULÀFDWLRQVLPXODWRUSURGXFW
7KH9HULORJ+'/FRQWDLQVDULFKVHWRIEXLOWLQSULPLWLYHVLQFOXGLQJORJLFJDWHVXVHUGHÀQDEOHSULPLWLYHV
VZLWFKHVDQGZLUHGORJLF,WDOVRKDVGHYLFHSLQWRSLQGHOD\VDQGWLPLQJFKHFNV7KHPL[LQJRIDEVWUDFWOHY
HOVLVHVVHQWLDOO\SURYLGHGE\WKHVHPDQWLFVRIWZRGDWDW\SHVQHWVDQGUHJLVWHUV&RQWLQXRXVDVVLJQPHQWVLQ
ZKLFKH[SUHVVLRQVRIERWKUHJLVWHUVDQGQHWVFDQFRQWLQXRXVO\GULYHYDOXHVRQWRQHWVSURYLGHWKHEDVLFVWUXF
WXUDOFRQVWUXFW3URFHGXUDODVVLJQPHQWVLQZKLFKWKHUHVXOWVRIFDOFXODWLRQVLQYROYLQJUHJLVWHUDQGQHWYDOXHV
FDQEHVWRUHGLQWRUHJLVWHUVSURYLGHWKHEDVLFEHKDYLRUDOFRQVWUXFW$GHVLJQFRQVLVWVRIDVHWRIPRGXOHV
HDFKRIZKLFKKDVDQ,2LQWHUIDFHDQGDGHVFULSWLRQRILWVIXQFWLRQZKLFKFDQEHVWUXFWXUDOEHKDYLRUDORUD
PL[7KHVHPRGXOHVDUHIRUPHGLQWRDKLHUDUFK\DQGDUHLQWHUFRQQHFWHGZLWKQHWV
7KH9HULORJODQJXDJHLVH[WHQVLEOHYLDWKH3URJUDPPLQJ/DQJXDJH,QWHUIDFH3/,7KH3/,LVDFROOHFWLRQRI
URXWLQHVWKDWDOORZVIRUHLJQIXQFWLRQVWRDFFHVVLQIRUPDWLRQFRQWDLQHGLQD9HULORJ+'/GHVFULSWLRQRIWKH
GHVLJQDQGIDFLOLWDWHVG\QDPLFLQWHUDFWLRQZLWKVLPXODWLRQ$SSOLFDWLRQVRI3/,LQFOXGHFRQQHFWLQJWRD9HU
LORJ+'/VLPXODWRUZLWKRWKHUVLPXODWLRQDQG&$'V\VWHPVFXVWRPL]HGGHEXJJLQJWDVNVGHOD\FDOFXODWRUV
DQGDQQRWDWRUV
7KHODQJXDJHWKDWLQÁXHQFHG9HULORJ+'/WKHPRVWZDV+,/2ZKLFKZDVGHYHORSHGDW%UXQHO8QLYHUVLW\
LQ(QJODQGXQGHUDFRQWUDFWWRSURGXFHDWHVWJHQHUDWLRQV\VWHPIRUWKH%ULWLVK0LQLVWU\RI'HIHQVH+,/2
VXFFHVVIXOO\FRPELQHGWKHJDWHDQGUHJLVWHUWUDQVIHUOHYHOVRIDEVWUDFWLRQDQGVXSSRUWHGYHULÀFDWLRQVLPXOD
WLRQWLPLQJDQDO\VLVIDXOWVLPXODWLRQDQGWHVWJHQHUDWLRQ
,Q&DGHQFH'HVLJQ6\VWHPVSODFHGWKH9HULORJ+'/LQWRWKHSXEOLFGRPDLQDQGWKHLQGHSHQGHQW2SHQ
9HULORJ,QWHUQDWLRQDO29,ZDVIRUPHGWRPDQDJHDQGSURPRWH9HULORJ+'/
,QWKH%RDUGRI'LUHFWRUVRI29,EHJDQDQHIIRUWWRHVWDEOLVK9HULORJ+'/DVDQ,(((VWDQGDUG:LWK
PDQ\GHVLJQHUVDOORYHUWKHZRUOGGHVLJQLQJHOHFWURQLFFLUFXLWVZLWK9HULORJ+'/WKLVLGHDZDVHQWKXVLDVWL
FDOO\UHFHLYHGE\WKH9HULORJXVHUFRPPXQLW\:KHQWKH3URMHFW$XWKRUL]DWLRQ5HTXHVWZDVDSSURYHG
E\WKH,(((LQDZRUNLQJJURXSZDVIRUPHGDQGWKHÀUVWPHHWLQJZDVKHOGRQ2FWREHU
2EMHFWLYH
7KHVWDUWLQJSRLQWIRUWKH,(((3:RUNLQJ*URXSZHUHWKH29,/50YHUVLRQDQG29,3/,YHUVLRQV
DQG7KHVWDQGDUGL]DWLRQSURFHVVVWDUWHGZLWKWKHFOHDUREMHFWLYHRIPDNLQJLWHDVLHUIRUWKHXVHUWR
XQGHUVWDQGDQGXVH9HULORJ7KH,(((3VWDQGDUGKDGWREHFOHDUXQDPELJXRXVLPSOHPHQWDEOHDQGQRW
RYHUO\FRQVWUDLQLQJ6LQFH9HULORJ+'/KDVEHHQLQXVHIRUVRPHWLPHLWZDVTXLWHUREXVWHQRXJKWREHSUH
VHQWHGWRWKHXVHUFRPPXQLW\ZLWKRXWDJUHDWGHDORIHQKDQFHPHQWV7KHZRUNLQJJURXSWKHUHIRUHGHFLGHG
QRWWRVSHQGDORWRIWLPHH[WHQGLQJWKHODQJXDJHEXWIRUWKHSXUSRVHRIWKLVVWDQGDUGL]DWLRQWRFRQFHQWUDWH
RQFODULI\LQJWKHODQJXDJH
6LQFH9HULORJ+'/KDVEHHQLQZLGHVSUHDGXVHDQGDQXPEHURI$6,&YHQGRUVKDYHEXLOWH[WHQVLYHOLEUDULHV
LQ9HULORJ+'/LWZDVYHU\LPSRUWDQWWRPDLQWDLQWKHLQWHJULW\RIWKHVHH[LVWLQJPRGHOV:LWKWKLVLQPLQGLW
LLL
ZDVGHFLGHGWKDWWKHLQWHQWRIWKHZRUNLQJJURXSZRXOGEHWRPDLQWDLQWKHLQWHJULW\RIWKHVWDQGDUGDQGHYHU\
FDUHZRXOGEHWDNHQQRWWRLQYDOLGDWHH[LVWLQJPRGHOV
7KHVWDQGDUGL]DWLRQSURFHVV
,QRUGHUWRFODULI\WKHODQJXDJHPDQ\FKDQJHVZHUHSURSRVHGIURPDQXPEHURIVRXUFHV7KHZRUNLQJJURXS
PHWWLPHVRYHUDSHULRGRIPRQWKVDQGYRWHGRQQHDUO\PRWLRQV)RXUGUDIWVRIWKHGRFXPHQWZHUH
JHQHUDWHGDQGUHYLHZHG,WLVDWULEXWHWRWKHKDUGZRUNDQGGHGLFDWLRQSXWIRUZDUGE\DOOWKHPHPEHUVRIWKH
ZRUNLQJJURXSWKDWWKLVVWDQGDUGZDVFRPSOHWHGLQWKHVKRUWVSDQRIPRQWKV
0DQ\QHZVHFWLRQVZHUHFUHDWHGRQHRIZKLFKLVWKHVHFWLRQRQVFKHGXOLQJVHPDQWLFV$QXPEHURIVHFWLRQV
ZHUHPHUJHGWRIRUPQHZVHFWLRQV7KHWZRDQQH[HVFRQWDLQLQJFRPSLOHUGLUHFWLYHVDQGV\VWHPWDVNVZHUH
PRYHGLQWRPDLQWH[WDVWZRVHFWLRQV(YHU\HIIRUWKDVEHHQPDGHWRFODULI\DOODPELJXLWLHVDGGH[SODQD
WLRQVDQGGHOHWHUHIHUHQFHVWKDWZHUHGHHPHGXQQHFHVVDU\
&KDQJHVDOVRLQFOXGHGUHPRYLQJSURGXFWVSHFLÀFUHIHUHQFHVDQGUHVWULFWLRQV7KHPLQLPXPSURGXFWUHTXLUH
PHQWV IRU LPSOHPHQWLQJ WKLV VWDQGDUG ZHUH FODULÀHG $ QXPEHU RI H[DPSOHV ÀJXUHV DQG WDEOHV ZHUH
UHWDLQHGLQRUGHUWRSURYLGHEHWWHUFRQWH[WDQGH[SODQDWLRQ
7KH3/,7DVN)RUFHSURYLGHGDFOHDUDQGDFFXUDWHGHVFULSWLRQRI29,3/,LPSOHPHQWDWLRQVDOUHDG\LQ
H[LVWHQFHDQGUHYLVLWHGWKH29,3/,VSHFLÀFDWLRQWRHQVXUHLWVDFFXUDF\DQGFRPSOHWHQHVV7KHEDVHOLQH
IRUWKHDFFHVVURXWLQHVDQGWKHWDVNIXQFWLRQURXWLQHVZDVWKH29,3/,VSHFLÀFDWLRQ$VWKHUHDUHDODUJH
QXPEHURI29,3/,URXWLQHVLQZLGHVSUHDGXVHWKDWZHUHQRWLQFOXGHGLQWKH29,3/,GRFXPHQWLW
ZDVGHFLGHGWRFRQVLGHUDGGLWLRQVWRWKLVGRFXPHQWIURPWKHSRRORIH[LVWLQJ29,3/,LPSOHPHQWDWLRQV
7KHDFFHVVURXWLQHVDQGWKHWDVNIXQFWLRQURXWLQHVSURYLGHIXOOEDFNZDUGVFRPSDWLELOLW\ZLWK9HULORJ+'/
VRIWZDUHWRROVDQG3/,DSSOLFDWLRQV
7KHEDVHOLQHIRUWKH93,URXWLQHVZDVWKHH[LVWLQJ29,3/,GRFXPHQW7RWKLVWKHWDVNIRUFHEURXJKW
QHZH[SHULHQFHIURPWKHLPSOHPHQWDWLRQVLQSURJUHVVZKLFKKHOSHGSURYHWKHZRUWKLQHVVRIWKHSUHYLRXVO\
XQWHVWHGVSHFLÀFDWLRQ
$FNQRZOHGJPHQWV
7KLVVWDQGDUGLVEDVHGRQZRUNRULJLQDOO\GHYHORSHGE\&DGHQFH'HVLJQ6\VWHPV,QFLQWKHLU9HULORJ/50
DQGDQG3/,GRFXPHQWVDQG2SHQ9HULORJ,QWHUQDWLRQDOLQWKHLU9HULORJ/50DQG3/,DQG
7KH,(((LVJUDWHIXOWR&DGHQFH'HVLJQ6\VWHPVDQG2SHQ9HULORJ,QWHUQDWLRQDOIRUSHUPLVVLRQWRXVH
WKHLUPDWHULDOVDVWKHEDVLVIRUWKLVVWDQGDUG
7KH,(((6WGZRUNLQJJURXSRUJDQL]DWLRQ
0DQ\LQGLYLGXDOVIURPPDQ\GLIIHUHQWRUJDQL]DWLRQVSDUWLFLSDWHGGLUHFWO\RULQGLUHFWO\LQWKHVWDQGDUGL]DWLRQ
SURFHVV7KHPDLQERG\RIWKH,(((3ZRUNLQJJURXSLVORFDWHGLQWKH8QLWHG6WDWHVZLWKDVXEJURXSLQ
-DSDQ 2YHU D SHULRG RI PRQWKV PDQ\ WDVN IRUFHV ZHUH FUHDWHG RI ZKLFK WKH 3/, WDVN IRUFH ZDV
SURPLQHQW
7KHPHPEHUVRIWKH,(((3ZRUNLQJJURXSKDGYRWLQJSULYLOHJHVDQGDOOPRWLRQVKDGWREHDSSURYHG
E\WKLVJURXSWREHLPSOHPHQWHG$OOWDVNIRUFHVDQGVXEJURXSVIRFXVHGRQVRPHVSHFLÀFDUHDVDQGWKHLU
UHFRPPHQGDWLRQVZHUHHYHQWXDOO\YRWHGRQE\WKH,(((3ZRUNLQJJURXS
LY
$WWKHWLPHWKLVGRFXPHQWZDVDSSURYHGWKH,(((3ZRUNLQJJURXSKDGWKHIROORZLQJPHPEHUVKLS
0DTVRRGXO0DT0DQQDQ&KDLU
<RVKLKDUX)XUXL9LFH&KDLU-DSDQ
$OHF*6WDQFXOHVFX9LFH&KDLU86$
/\QQ$+RURELQ6HFUHWDU\
<DWLQ7ULYHGL7HFKQLFDO(GLWRU
9LFWRU%HUPDQ
/HLJK%UDG\
&OLIIRUG(&XPPLQJV
3HWHU(LFKHQEHUJHU
$QGUHZ7/\QFK
-RKQ0DQFLQL
0LFKDHO0F1DPDUD
(OOLRW0HGQLFN
3KLO0RRUE\
*DEH0RUHWWL
-RKQ6DQJXLQHWWL
-RVHSK36NXGODUHN
6WXDUW6XWKHUODQG
-RKQ5:LOOLDPVRQ
$OH[1=DPÀUHVFX
7KH3/,WDVNIRUFHFRQVLVWHGRIWKHIROORZLQJPHPEHUV
$QGUHZ7/\QFK3/,7DVN)RUFH/HDGHU
6WXDUW6XWKHUODQG7HFKQLFDO(GLWRU
&KDUOHV$'DZVRQ
5DMHHY0DGKDYDQ
-RHO3DVWRQ
6DWK\DP.3DWWDQDP
'DYLG5REHUWV
0DUFR=HODGR
*XRTLQJ=KDQJ
7KH,(((3-DSDQVXEJURXSFRQVLVWHGRIWKHIROORZLQJPHPEHUV
<RVKLKDUX)XUXL9LFH&KDLU,(((:RUNLQJ*URXS
7DNDDNL$NDVKL
.DVXPL+DPDJXFKL
0DVDWR,NHGD
0DVDUX.DNLPRWR
.D]X\D0RULL
-XQLFKL0XUD\DPD
0DVDKDUX1DNDPXUD
6KRXKHL2GD
)XMLR2WVXND
7RVKL\XNL6DNDPRWR
+LWRPL6DWR
.DWVXVKLGD6HR
0LWVXKLUR<DVXGD
.D]XKLUR<RVKLQDJD
7KHIROORZLQJSHUVRQVZHUHPHPEHUVRIWKHEDOORWLQJJURXS
*X\$GDP
+*RUGRQ$GVKHDG
8QPHVK$JDUZDOD
$QDQW$JUDZDO
-RKQ$LQVFRXJK
7DNDDNL$NDVKL
7RP$OEHUV
*OHQ$QGHUVRQ
/DZUHQFH)$UQVWHLQ
0LFKDHO$WNLQ
9HQNDWD$WOXUL
5LFN%DKU
-LP%DOO
-RVH%DUDGLDUDQ
'DQLHO6%DUFOD\
'DYLG/%DUWRQ
-HDQ0LFKHO%HUJH
9LFWRU%HUPDQ
-%KDVNHU
5RQ%LDQFKLQL
:LOOLDP'%LOORZLWFK
5RQDOG'%ODQWRQ
0LULDP%ODWW
-DPHV%UDQGW
'HQQLV%%URSK\
5DQGDO(%U\DQW
-RKQ$%XVFR
%HQ%X]RQDV
/5LFKDUG&DUOH\
7KRPDV&KDR
'DQLHO&KDSLUR
&OLYH5&KDUOZRRG
&KLQ)X&KHQ
0RM\&&KLDQ
.DL0RRQ&KRZ
0LFKDHO'&LOHWWL
-RVHSK&&LUFHOOR
/XF&ODHVHQ
*HRUJH0&OHYHODQG
(GPRQG6&RROH\
7HGG&RUPDQ
'DYLG&URKQ
&OLIIRUG(&XPPLQJV
*RGIUH\3DXO'
6RX]D
%ULDQ$'DOLR
&DUORV'DQJHOR
+DO'DVHNLQJ
7LPRWK\5'DYLV
&KDUOHV$'DZVRQ
:LOOHP'H/DQJH
5DMLY'HVKPXNK
&DUROLQH'H9RUH.HQQH\
$OOHQ'HZH\
%LOO'RVV
'RXJODV''XQORS
3HWHU(LFKHQEHUJHU
+D]HP(O7DKDZ\
-RKQ$(OGRQ
%DVVDP1(ONKRXU\
7HG(ONLQG
%ULDQ(ULFNVRQ
5REHUW$)ODWW
%RE)OR\G
$ODLQ%ODLVH)RQNRXD
'RXJODV:)RUHKDQG
3DXO)UDQ]RQ
%LOO)XFKV
Y
<RVKLKDUX)XUXL
9DVVLOLRV*HURXVLV
(PLO*LUF]\F
5LWD$*ORYHU
7LPRWK\**ROGVEXU\
$ODQ*RRGUXP
6XUHVK*RSDODNULVKQDQ
+DUXWDND*RWR
.HQML*RWR
%ULDQ*ULIÀQ
6WHYH*URXW
.D]X\XNL+DJLZDUD
0LFKDHO-+DQH\
-DPHV3+DQQD
$QQH&+DUULV
$NLUD+DVHJDZD
6WXDUW+HFKW
6KDQNDU+HPPDG\
-RKQ+LOODZL
&KULV1+LQGV
.D]X\XNL+LUDNDZD
)XPL\DVX+LURVH
/\QQ$+RURELQ
7DPLR+RVKLQR
0D\+XDQJ
6\OYLH+XUDW
0DVDKDUX,PDL
$QQ,U]D
0LWVXDNL,VKLNDZD
<RVKL,VKL]DND
'DYLG-DNRSDF
3DXO-HIIV
5RJHU-HQQLQJV
(XJHQH(-RQHV
5LFKDUG-RQHV
7HWVXUR.DJH
0DVDUX.DNLPRWR
2VDPX.DUDWVX
-DNH.DUUIDOW
.DRUX.DZDPXUD
0DVDPLFKL.DZDUDED\DVKL
3UDWLEKD.HODSXUH
.KR]HPD.KDPEDWL
%UXFH.LP
&KRRQ%.LP
7VXWRPX.LPRWR
&KULV.LQJVOH\
0DVD\XNL.R\DPD
7RNLQRUL.R]DZD
6DUDQJDQ..XPDU
5DPDFKDQGUD3.XQGD
'RXJODV/DLUG
-HDQ/HEUXQ
%LOO/HGEHWWHU
+XQJ<L/HH
6KDZQ/HRQDUG
2]/HYLD
*HRUJH/LSSLQFRWW
YL
+HUEHUW/RSH]$JXDGR
-LQ4LQ/X
$QGUHZ7/\QFK
9LUDQMLW60DGDQ
5DMHHY0DGKDYDQ
1DRWDND0DHGD
6HUJH0DJLQRW
-DPHV0DJUR
:RMFLHFK30DO\
0DTVRRGXO0DQQDQ
*XLOOHUPR0DWXUDQD
0LFKDHO0F1DPDUD
3DXO-0HQFKLQL
-HDQ0HUPHW
*HUDOG70LFKDHO
*OHQ60LUDQNHU
6KDQNKD0LWUD
.ULVWDQ0RQVHQ
-RKQ70RQWDJXH
3DWULFN0RRUH
*DEH0RUHWWL
'DYLG60RUULV
&KDQGUD0RWXUX
:ROIJDQJ0XHOOHU
6KDQNDU5DQMDQ0XNKHUMHH
<RVKLDNL1DJDVKLPD
'DYLG1DJOH
+LURVKL1DNDPXUD
+LURVKL1DNDPXUD
6HLML1DNDPXUD
=DLQDODEHGLQ1DYDEL
6LYDUDP.1D\XGX
5REHUW11HZVKXW]
-XQ1XPDWD
-RKQ:2·/HDU\
7HWVX\D2NDEH
9LQFHQW2OLYH
<RLFKL2QLVKL
6DPLU3DOQLWNDU
0DUN3DSDPDUFRV
'DYLG03DUU\
5DMHVK3DWLO
5REHUW$3HDVH
0LWFKHOO3HULOVWHLQ
%UXFH3HWULFN
-RKQ3HWU\
5REHUW3LORW\
-XDQ3LQHGD
5RQ3RRQ
-DQ3XNLWH
6HOOLDK5DWKQDP
'DYLG5LFK
-RKQ35LHV
+HPDQW*5RWLWKRU
-DFTXHV5RXLOODUG
3DXO5RZERWWRP
-RQ5XELQVWHLQ
6WHIDQ5XVX
5RE$5XWHQEDU
.DUHP$6DNDOODK
7RVKL\XNL6DNDPRWR
-RKQ6DQJXLQHWWL
+LWRPL6DWR
/DUU\)6DXQGHUV
4XHQWLQ6FKPLHUHU
0LFKDHO/6HDYH\
$OH[6HLEXOHVFX
6KDLOHVK6KDK
0RH6KDKGDG
5DYL6KDQNDU
&KDUOHV6KHORU
-RKQ36KHQ
+LURVKL6KLUDLVKL
7RUX6KRQDL
$OH[DQGHU$6LOEH\
6XSUHHW6LQJK
-RVHSK36NXGODUHN
'DYLG06PLWK
'DYLG56PLWK
:LOOLDP%RQJ+6RRQ
/DUU\36RXOH
-RKQ6SLWWDO
&KDNUD56ULYDWVD
-RVHSK-6WDQFR
$OHF*6WDQFXOHVFX
-D\.6WURVQLGHU
6WXDUW6XWKHUODQG
.LQ\D7DEXFKL
$WVXVKL7DNDKDUD
'RQDOG7KRPDV
3DUWKD7LUXPDODL
-RVH$7RUUHV
3DXO7UD\QDU
5LFKDUG7ULK\
<DWLQ7ULYHGL
6KXQMHQ7VD\
5DGKD9DLG\DQDWKDQ
$ULHYDQ5KLMQ
.HUU\9HHQVWUD
9HQNDW99HQNDWDUDPDQ
6DQMD\9LVKLQ
5REHUW$:DONHU
7VX+XD:DQJ
-RKQ-:DWWHUV
5RQDOG:D[PDQ
-5LFKDUG:HJHU
3DXO:HLO
-RKQ5:LOOLDPVRQ
-RKQ&:LOOLV
&ODXGLD+<H
:LOOLDP5<RXQJ
7HWVXR<XWDQL
$OH[1=DPÀUHVFX
*XRTLQJ=KDQJ
:KHQWKH,(((6WDQGDUGV%RDUGDSSURYHGWKLVVWDQGDUGRQ'HFHPEHULWKDGWKHIROORZLQJPHP
EHUVKLS
(*´$Oµ.LHQHU&KDLU
*LOOHV$%DULO
&O\GH5&DPS
-RVHSK$&DQQDWHOOL
6WHSKHQ/'LDPRQG
+DUROG((SVWHLQ
'RQDOG&)OHFNHQVWHLQ
-D\)RUVWHU
'RQDOG1+HLUPDQ
5LFKDUG-+ROOHPDQ
'RQDOG&/RXJKU\9LFH&KDLU
$QGUHZ*6DOHP6HFUHWDU\
-LP,VDDN
%HQ&-RKQVRQ
6RQQ\.DVWXUL
/RUUDLQH&.HYUD
,YRU1.QLJKW
-RVHSK/.RHSÀQJHU
'1´-LPµ/RJRWKHWLV
/%UXFH0F&OXQJ
0DUFR:0LJOLDUR
0DU\/RX3DGJHWW
-RKQ:3RSH
$UWKXU.5HLOO\
*DU\65RELQVRQ
,QJR5VFK
&KHH.LRZ7DQ
/HRQDUG/7ULSS
+RZDUG/:ROIPDQ
0HPEHU(PHULWXV
$OVRLQFOXGHGDUHWKHIROORZLQJQRQYRWLQJ,(((6WDQGDUGV%RDUGOLDLVRQV
6DWLVK.$JJDUZDO
6WHYH6KDUNH\
5REHUW(+HEQHU
&KHVWHU&7D\ORU
0DU\/\QQH1LHOVHQ
,(((6WDQGDUGV3URMHFW(GLWRU
9HULORJLVDUHJLVWHUHGWUDGHPDUNRI&DGHQFH'HVLJQ6\VWHPV,QF
YLL
&RQWHQWV
6HFWLRQ
2YHUYLHZ 6HFWLRQ
/H[LFDOFRQYHQWLRQV 6HFWLRQ
'DWDW\SHV 6HFWLRQ
([SUHVVLRQV 6HFWLRQ
6FKHGXOLQJVHPDQWLFV 6HFWLRQ
$VVLJQPHQWV 6HFWLRQ
*DWHDQGVZLWFKOHYHOPRGHOLQJ 6HFWLRQ
8VHUGHILQHGSULPLWLYHV8'3V 6HFWLRQ
%HKDYLRUDOPRGHOLQJ 6HFWLRQ
7DVNVDQGIXQFWLRQV 6HFWLRQ
'LVDEOLQJRIQDPHGEORFNVDQGWDVNV 6HFWLRQ
+LHUDUFKLFDOVWUXFWXUHV 6HFWLRQ
6SHFLI\EORFNV 6HFWLRQ
6\VWHPWDVNVDQGIXQFWLRQV 6HFWLRQ
9DOXHFKDQJHGXPS9&'ILOH 6HFWLRQ
&RPSLOHUGLUHFWLYHV 6HFWLRQ
3/,7)DQG$&&LQWHUIDFHPHFKDQLVP 6HFWLRQ
8VLQJ$&&URXWLQHV 6HFWLRQ
$&&URXWLQHGHILQLWLRQV 6HFWLRQ
8VLQJ7)URXWLQHV 6HFWLRQ
7)URXWLQHGHILQLWLRQV 6HFWLRQ
8VLQJ93,URXWLQHV 6HFWLRQ
93,URXWLQHGHILQLWLRQV $QQH[$
)RUPDOV\QWD[GHILQLWLRQ $QQH[%
/LVWRINH\ZRUGV YLLL
$QQH[&
7KHDFFBXVHUKILOH $QQH['
7KHYHULXVHUKILOH $QQH[(
7KHYSLBXVHUKILOH $QQH[)
6\VWHPWDVNVDQGIXQFWLRQV $QQH[*
&RPSLOHUGLUHFWLYHV $QQH[+
%LEOLRJUDSK\ L[
,(((6WDQGDUG+DUGZDUH'HVFULSWLRQ
/DQJXDJH%DVHGRQWKH9HULORJŠ
+DUGZDUH'HVFULSWLRQ/DQJXDJH
6HFWLRQ
2YHUYLHZ
2EMHFWLYHVRIWKLVVWDQGDUG
7KHLQWHQWRIWKLVVWDQGDUGLVWRVHUYHDVDFRPSOHWHVSHFLÀFDWLRQRIWKH9HULORJŠ+DUGZDUH'HVFULSWLRQ/DQJXDJH
+'/7KLVGRFXPHQWFRQWDLQV
³
³
³
³
³
7KHIRUPDOV\QWD[DQGVHPDQWLFVRIDOO9HULORJ+'/FRQVWUXFWV
6LPXODWLRQV\VWHPWDVNVDQGIXQFWLRQVVXFKDVWH[WRXWSXWGLVSOD\FRPPDQGV
&RPSLOHUGLUHFWLYHVVXFKDVWH[WVXEVWLWXWLRQPDFURVDQGVLPXODWLRQWLPHVFDOLQJ
7KH3URJUDPPLQJ/DQJXDJH,QWHUIDFH3/,ELQGLQJPHFKDQLVP
7KHIRUPDOV\QWD[DQGVHPDQWLFVRIDFFHVVURXWLQHVWDVNIXQFWLRQURXWLQHVDQG9HULORJSURFHGXUDOLQWHUIDFH
URXWLQHV
³ ,QIRUPDWLYHXVDJHH[DPSOHV
³ /LVWLQJVRIKHDGHUÀOHVIRU3/,
&RQYHQWLRQVXVHGLQWKLVVWDQGDUG
7KLVVWDQGDUGLVRUJDQL]HGLQWRVHFWLRQVHDFKRIZKLFKIRFXVHVRQVRPHVSHFLÀFDUHDRIWKHODQJXDJH7KHUHDUHVXE
FODXVHVZLWKLQHDFKVHFWLRQWRGLVFXVVLQGLYLGXDOFRQVWUXFWVDQGFRQFHSWV7KHGLVFXVVLRQEHJLQVZLWKDQLQWURGXFWLRQ
DQGDQRSWLRQDOUDWLRQDOHIRUWKHFRQVWUXFWRUWKHFRQFHSWIROORZHGE\V\QWD[DQGVHPDQWLFGHVFULSWLRQVIROORZHGE\
VRPHH[DPSOHVDQGQRWHV
7KHYHUE´VKDOOµLVXVHGWKURXJKRXWWKLVVWDQGDUGWRLQGLFDWHPDQGDWRU\UHTXLUHPHQWVZKHUHDVWKHYHUE´FDQµLVXVHG
WRLQGLFDWHRSWLRQDOIHDWXUHV7KHVHYHUEVGHQRWHGLIIHUHQWPHDQLQJVWRGLIIHUHQWUHDGHUVRIWKLVVWDQGDUG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
D
7R WKH GHYHORSHUV RI WRROV WKDW SURFHVV WKH9HULORJ +'/ WKH YHUE ´VKDOOµ GHQRWHV D UHTXLUHPHQW WKDW WKH
VWDQGDUGLPSRVHV7KHUHVXOWLQJLPSOHPHQWDWLRQLVUHTXLUHGWRHQIRUFHWKHUHTXLUHPHQWVDQGWRLVVXHDQHUURU
LIWKHUHTXLUHPHQWLVQRWPHWE\WKHLQSXW
E
7RWKH9HULORJ+'/PRGHOGHYHORSHUWKHYHUE´VKDOOµGHQRWHVWKDWWKHFKDUDFWHULVWLFVRIWKH9HULORJ+'/DUH
QDWXUDOFRQVHTXHQFHVRIWKHODQJXDJHGHÀQLWLRQ7KHPRGHOGHYHORSHULVUHTXLUHGWRDGKHUHWRWKHFRQVWUDLQW
LPSOLHGE\WKHFKDUDFWHULVWLF7KHYHUE´FDQµGHQRWHVRSWLRQDOIHDWXUHVWKDWWKHPRGHOGHYHORSHUFDQH[HUFLVH
DWGLVFUHWLRQ,IXVHGKRZHYHUWKHPRGHOGHYHORSHULVUHTXLUHGWRIROORZWKHUHTXLUHPHQWVVHWIRUWKE\WKH
ODQJXDJHGHÀQLWLRQ
F
7RWKH9HULORJ+'/PRGHOXVHUWKHYHUE´VKDOOµGHQRWHVWKDWWKHFKDUDFWHULVWLFVRIWKHPRGHOVDUHQDWXUDO
FRQVHTXHQFHV RI WKH ODQJXDJH GHÀQLWLRQ 7KH PRGHO XVHU FDQ GHSHQG RQ WKH FKDUDFWHULVWLFV RI WKH PRGHO
LPSOLHGE\LWV9HULORJ+'/VRXUFHWH[W
6\QWDFWLFGHVFULSWLRQ
7KHIRUPDOV\QWD[RIWKH9HULORJ+'/LVGHVFULEHGXVLQJ%DFNXV1DXU)RUP%1)7KHIROORZLQJFRQYHQWLRQVDUH
XVHG
D
/RZHUFDVH ZRUGV VRPH FRQWDLQLQJ HPEHGGHG XQGHUVFRUHV DUH XVHG WR GHQRWH V\QWDFWLF FDWHJRULHV )RU
H[DPSOH
PRGXOHBGHFODUDWLRQ
E
%ROGIDFHZRUGVDUHXVHGWRGHQRWHUHVHUYHGNH\ZRUGVRSHUDWRUVDQGSXQFWXDWLRQPDUNVDVDUHTXLUHGSDUWRI
WKHV\QWD[7KHVHZRUGVDSSHDULQDODUJHUIRQWIRUGLVWLQFWLRQ)RUH[DPSOH
PRGXOH !
F
$YHUWLFDOEDUVHSDUDWHVDOWHUQDWLYHLWHPVXQOHVVLWDSSHDUVLQEROGIDFHLQZKLFKFDVHLWVWDQGVIRULWVHOI)RU
H[DPSOH
XQDU\BRSHUDWRU ___a__a___a__A_aA_Aa
G
6TXDUHEUDFNHWVHQFORVHRSWLRQDOLWHPV)RUH[DPSOH
LQSXWBGHFODUDWLRQ LQSXW>UDQJH@OLVWBRIBYDULDEOHV
H
%UDFHVHQFORVHDUHSHDWHGLWHPXQOHVVLWDSSHDUVLQEROGIDFHLQZKLFKFDVHLWVWDQGVIRULWVHOI7KHLWHPPD\
DSSHDU]HURRUPRUHWLPHVWKHUHSHWLWLRQVRFFXUIURPOHIWWRULJKWDVZLWKDQHTXLYDOHQWOHIWUHFXUVLYHUXOH
7KXVWKHIROORZLQJWZRUXOHVDUHHTXLYDOHQW
OLVWBRIBSDUDPBDVVLJQPHQWV SDUDPBDVVLJQPHQW^SDUDPBDVVLJQPHQW`
OLVWBRIBSDUDPBDVVLJQPHQWV SDUDPBDVVLJQPHQW
_OLVWBRIBSDUDPBDVVLJQPHQWSDUDPBDVVLJQPHQW
I
,IWKHQDPHRIDQ\FDWHJRU\VWDUWVZLWKDQLWDOLFL]HGSDUWLWLVHTXLYDOHQWWRWKHFDWHJRU\QDPHZLWKRXWWKH
LWDOLFL]HG SDUW 7KH LWDOLFL]HG SDUW LV LQWHQGHG WR FRQYH\ VRPH VHPDQWLF LQIRUPDWLRQ )RU H[DPSOH
PVEBFRQVWDQWBH[SUHVVLRQDQGOVEBFRQVWDQWBH[SUHVVLRQDUHHTXLYDOHQWWRFRQVWDQWBH[SUHVVLRQ
7KH PDLQ WH[W XVHV LWDOLFL]HG IRQW ZKHQ D WHUP LV EHLQJ GHÀQHG DQG FRQVWDQWZLGWK IRQW IRU H[DPSOHV ÀOH
QDPHVDQGZKLOHUHIHUULQJWRFRQVWDQWVHVSHFLDOO\[DQG]YDOXHV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
&RQWHQWVRIWKLVVWDQGDUG
$V\QRSVLVRIWKHVHFWLRQVDQGDQQH[HVLVSUHVHQWHGDVDTXLFNUHIHUHQFH7KHUHDUHVHFWLRQVDQGDQQH[HV$OOWKH
VHFWLRQVDQGDQQH[HV$WKURXJK(DUHQRUPDWLYHSDUWVRIWKLVVWDQGDUG$QQH[HV)DQG*DUHLQFOXGHGIRULQIRUPDWLYH
SXUSRVHVRQO\
6HFWLRQ
2YHUYLHZ
7KLVVHFWLRQGLVFXVVHVWKHFRQYHQWLRQVXVHGLQWKLVVWDQGDUGDQGLWVFRQWHQWV
/H[LFDOFRQYHQWLRQV
7KLVVHFWLRQGHVFULEHVKRZWRVSHFLI\DQGLQWHUSUHWWKHOH[LFDOWRNHQV
'DWDW\SHV
7KLVVHFWLRQGHVFULEHVQHWDQGUHJGDWDW\SHV7KLVVHFWLRQDOVRGLVFXVVHVWKHSDUDPHWHUGDWDW\SHIRUFRQ
VWDQWYDOXHVDQGGHVFULEHVGULYHDQGFKDUJHVWUHQJWKRIWKHYDOXHVRQQHWV
([SUHVVLRQV
7KLVVHFWLRQGHVFULEHVWKHRSHUDWRUVDQGRSHUDQGVWKDWFDQEHXVHGLQH[SUHVVLRQV
6FKHGXOLQJVHPDQWLFV
7KLVVHFWLRQGHVFULEHVWKHVFKHGXOLQJVHPDQWLFVRIWKH9HULORJ+'/
$VVLJQPHQWV
7KLVVHFWLRQFRPSDUHVWKHWZRPDLQW\SHVRIDVVLJQPHQWVWDWHPHQWVLQWKH9HULORJ+'/³FRQWLQXRXV
DVVLJQPHQWVDQGSURFHGXUDODVVLJQPHQWV,WGHVFULEHVWKHFRQWLQXRXVDVVLJQPHQWVWDWHPHQWWKDWGULYHV
YDOXHVRQWRQHWV
*DWHDQGVZLWFKOHYHOPRGHOLQJ
7KLVVHFWLRQGHVFULEHVWKHJDWHDQGVZLWFKOHYHOSULPLWLYHVDQGORJLFVWUHQJWKPRGHOLQJ
8VHUGHILQHGSULPLWLYHV8'3V
7KLVVHFWLRQGHVFULEHVKRZDSULPLWLYHFDQEHGHÀQHGLQWKH9HULORJ+'/DQGKRZWKHVHSULPLWLYHVDUH
LQFOXGHGLQ9HULORJ+'/PRGHOV
%HKDYLRUDOPRGHOLQJ
7KLVVHFWLRQGHVFULEHVSURFHGXUDODVVLJQPHQWVSURFHGXUDOFRQWLQXRXVDVVLJQPHQWVDQGEHKDYLRUDOODQ
JXDJHVWDWHPHQWV
7DVNVDQGIXQFWLRQV
7KLVVHFWLRQGHVFULEHVWDVNVDQGIXQFWLRQV³SURFHGXUHVWKDWFDQEHFDOOHGIURPPRUHWKDQRQHSODFHLQD
EHKDYLRUDOPRGHO,WGHVFULEHVKRZWDVNVFDQEHXVHGOLNHVXEURXWLQHVDQGKRZIXQFWLRQVFDQEHXVHGWR
GHÀQHQHZRSHUDWRUV
'LVDEOLQJRIQDPHGEORFNVDQGWDVNV
7KLVVHFWLRQGHVFULEHVKRZWRGLVDEOHWKHH[HFXWLRQRIDWDVNDQGDEORFNRIVWDWHPHQWVWKDWKDVDVSHFL
ÀHGQDPH
+LHUDUFKLFDOVWUXFWXUHV
7KLV VHFWLRQ GHVFULEHV KRZ KLHUDUFKLHV DUH FUHDWHG LQ WKH 9HULORJ +'/ DQG KRZ SDUDPHWHU YDOXHV
GHFODUHGLQDPRGXOHFDQEHRYHUULGGHQ
6SHFLI\EORFNV
7KLVVHFWLRQGHVFULEHVKRZWRVSHFLI\WLPLQJUHODWLRQVKLSVEHWZHHQLQSXWDQGRXWSXWSRUWVRIDPRGXOH
6\VWHPWDVNVDQGIXQFWLRQV
7KLVVHFWLRQGHVFULEHVWKHV\VWHPWDVNVDQGIXQFWLRQV
9DOXHFKDQJHGXPS9&'ÀOH
7KLVVHFWLRQGHVFULEHVWKHV\VWHPWDVNVDVVRFLDWHGZLWK9DOXH&KDQJH'XPS9&'ÀOHDQGWKHIRUPDW
RIWKHÀOH
&RPSLOHUGLUHFWLYHV
7KLVVHFWLRQGHVFULEHVWKHFRPSLOHUGLUHFWLYHV
3/,7)DQG$&&LQWHUIDFHPHFKDQLVP
7KLVVHFWLRQGHVFULEHVWKHLQWHUIDFHPHFKDQLVPWKDWSURYLGHVDPHDQVIRUXVHUVWROLQN3/,WDVNIXQFWLRQ
7)URXWLQHDQGDFFHVV$&&URXWLQHDSSOLFDWLRQVWR9HULORJVRIWZDUHWRROV
8VLQJ$&&URXWLQHV
7KLVVHFWLRQGHVFULEHVWKH$&&URXWLQHVLQJHQHUDOLQFOXGLQJKRZDQGZK\WRXVHWKHP
,(((
6WG
$&&URXWLQHGHILQLWLRQV
7KLVVHFWLRQGHVFULEHVWKHVSHFLÀF$&&URXWLQHVH[SODLQLQJWKHLUIXQFWLRQV\QWD[DQGXVDJH
8VLQJ7)URXWLQHV
7KLVVHFWLRQSURYLGHVDQRYHUYLHZRIWKHW\SHVRIRSHUDWLRQVWKDWDUHGRQHZLWKWKH7)URXWLQHV
7)URXWLQHGHILQLWLRQV
7KLVVHFWLRQGHVFULEHVWKHVSHFLÀF7)URXWLQHVH[SODLQLQJWKHLUIXQFWLRQV\QWD[DQGXVDJH
8VLQJ93,URXWLQHV
7KLVVHFWLRQSURYLGHVDQRYHUYLHZRIWKHW\SHVRIRSHUDWLRQVWKDWDUHGRQHZLWKWKH9HULORJ3URJUDPPLQJ
,QWHUIDFH93,URXWLQHV
93,URXWLQHGHILQLWLRQV
7KLVVHFWLRQGHVFULEHVWKH93,URXWLQHV
$
)RUPDOV\QWD[GHILQLWLRQ
7KLVQRUPDWLYHDQQH[GHVFULEHVXVLQJ%1)WKHV\QWD[RIWKH9HULORJ+'/
%
/LVWRINH\ZRUGV
7KLVQRUPDWLYHDQQH[OLVWVWKH9HULORJ+'/NH\ZRUGV
&
7KHDFFBXVHUKILOH
7KLVQRUPDWLYHDQQH[SURYLGHVDOLVWLQJRIWKHFRQWHQWVRIWKHDFFBXVHUKÀOH
' 7KHYHULXVHUKILOH
7KLVQRUPDWLYHDQQH[SURYLGHVDOLVWLQJRIWKHFRQWHQWVRIWKHYHULXVHUKÀOH
(
7KHYSLBXVHUKILOH
7KLVQRUPDWLYHDQQH[SURYLGHVDOLVWLQJRIWKHFRQWHQWVRIWKHYSLBXVHUKÀOH
)
6\VWHPWDVNVDQGIXQFWLRQV
7KLVLQIRUPDWLYHDQQH[GHVFULEHVV\VWHPWDVNVDQGIXQFWLRQVWKDWDUHIUHTXHQWO\XVHGEXWWKDWDUHQRW
SDUWRIWKHVWDQGDUG
* &RPSLOHUGLUHFWLYHV
7KLVLQIRUPDWLYHDQQH[GHVFULEHVFRPSLOHUGLUHFWLYHVWKDWDUHIUHTXHQWO\XVHGEXWWKDWDUHQRWSDUWRIWKH
VWDQGDUG
+ %LEOLRJUDSK\
7KLVLQIRUPDWLYHDQQH[FRQWDLQVELEOLRJUDSKLFHQWULHVSHUWDLQLQJWRWKLVVWDQGDUG
+HDGHUILOHOLVWLQJV
7KHKHDGHUÀOHOLVWLQJVLQFOXGHGLQWKHDQQH[HV&'DQG(IRU YHULXVHUK DFFBXVHUKDQG YSLBXVHUK
DUHDQRUPDWLYHSDUWRIWKLVVWDQGDUG$OOFRPSOLDQWVRIWZDUHWRROVVKRXOGXVHWKHVDPHIXQFWLRQGHFODUDWLRQVFRQVWDQW
GHÀQLWLRQVDQGVWUXFWXUHGHÀQLWLRQVFRQWDLQHGLQWKHVHKHDGHUÀOHOLVWLQJV
([DPSOHV
6HYHUDOVPDOOH[DPSOHVLQWKH9HULORJ+'/DQGWKH&SURJUDPPLQJODQJXDJHDUHVKRZQWKURXJKRXWWKLVVWDQGDUG
7KHVHH[DPSOHVDUH LQIRUPDWLYH³WKH\DUHLQWHQGHGWRLOOXVWUDWHWKHXVDJHRI9HULORJ+'/FRQVWUXFWVDQG3/,IXQF
WLRQVLQDVLPSOHFRQWH[WDQGGRQRWGHÀQHWKHIXOOV\QWD[
3UHUHTXLVLWHV
6HFWLRQVWKURXJKDQGDQQH[HV&WKURXJK(SUHVXSSRVHDZRUNLQJNQRZOHGJHRIWKH&SURJUDPPLQJODQJXDJH
6HFWLRQ
,(((
6WG
6HFWLRQ
/H[LFDOFRQYHQWLRQV
7KLVVHFWLRQGHVFULEHVWKHOH[LFDOWRNHQVXVHGLQ9HULORJ+'/VRXUFHWH[WDQGWKHLUFRQYHQWLRQV
/H[LFDOWRNHQV
9HULORJ+'/VRXUFHWH[WÀOHVVKDOOEHDVWUHDPRIOH[LFDOWRNHQV$OH[LFDOWRNHQVKDOOFRQVLVWRIRQHRUPRUHFKDUDF
WHUV7KHOD\RXWRIWRNHQVLQDVRXUFHÀOHVKDOOEHIUHHIRUPDW³WKDWLVVSDFHVDQGQHZOLQHVVKDOOQRWEHV\QWDFWLFDOO\
VLJQLÀFDQWRWKHUWKDQEHLQJWRNHQVHSDUDWRUVH[FHSWIRUHVFDSHGLGHQWLÀHUVVHH
7KHW\SHVRIOH[LFDOWRNHQVLQWKHODQJXDJHDUHDVIROORZV
³
³
³
³
³
³
³
:KLWHVSDFH
&RPPHQW
2SHUDWRU
1XPEHU
6WULQJ
,GHQWLÀHU
.H\ZRUG
:KLWHVSDFH
:KLWHVSDFHVKDOOFRQWDLQWKHFKDUDFWHUVIRUVSDFHVWDEVQHZOLQHVDQGIRUPIHHGV7KHVHFKDUDFWHUVVKDOOEHLJQRUHG
H[FHSW ZKHQ WKH\ VHUYH WR VHSDUDWH RWKHU OH[LFDO WRNHQV +RZHYHU EODQNV DQG WDEV VKDOO EH FRQVLGHUHG VLJQLÀFDQW
FKDUDFWHUVLQVWULQJVVHH
&RPPHQWV
7KH9HULORJ+'/KDVWZRIRUPVWRLQWURGXFHFRPPHQWV$ RQHOLQHFRPPHQWVKDOOVWDUWZLWKWKHWZRFKDUDFWHUV DQGHQGZLWKDQHZOLQH$EORFNFRPPHQWVKDOOVWDUWZLWKDQGHQGZLWK%ORFNFRPPHQWVVKDOOQRWEHQHVWHG
7KHRQHOLQHFRPPHQWWRNHQVKDOOQRWKDYHDQ\VSHFLDOPHDQLQJLQDEORFNFRPPHQW
2SHUDWRUV
2SHUDWRUVDUHVLQJOHGRXEOHRUWULSOHFKDUDFWHUVHTXHQFHVDQGDUHXVHGLQH[SUHVVLRQV6HFWLRQGLVFXVVHVWKHXVH
RIRSHUDWRUVLQH[SUHVVLRQV
8QDU\RSHUDWRUVVKDOODSSHDUWRWKHOHIWRIWKHLURSHUDQG %LQDU\RSHUDWRUVVKDOODSSHDUEHWZHHQWKHLURSHUDQGV$
FRQGLWLRQDORSHUDWRUVKDOOKDYHWZRRSHUDWRUFKDUDFWHUVWKDWVHSDUDWHWKUHHRSHUDQGV
1XPEHUV
&RQVWDQWQXPEHUVFDQEHVSHFLÀHGDVLQWHJHUFRQVWDQWVRUUHDOFRQVWDQWV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
QXPEHU GHFLPDOBQXPEHU
_RFWDOBQXPEHU
_ELQDU\BQXPEHU
_KH[BQXPEHU
_UHDOBQXPEHU
GHFLPDOBQXPEHU >VLJQ@XQVLJQHGBQXPEHU
_>VL]H@GHFLPDOBEDVHXQVLJQHGBQXPEHU
ELQDU\BQXPEHU >VL]H@ELQDU\BEDVHELQDU\BGLJLW^B_ELQDU\BGLJLW`
RFWDOBQXPEHU >VL]H@RFWDOBEDVHRFWDOBGLJLW^B_RFWDOBGLJLW`
KH[BQXPEHU >VL]H@KH[BEDVHKH[BGLJLW^B_KH[BGLJLW`
UHDOBQXPEHU
>VLJQ@XQVLJQHGBQXPEHUXQVLJQHGBQXPEHU
_>VLJQ@XQVLJQHGBQXPEHU>XQVLJQHGBQXPEHU@H>VLJQ@XQVLJQHGBQXPEHU
_>VLJQ@XQVLJQHGBQXPEHU>XQVLJQHGBQXPEHU@(>VLJQ@XQVLJQHGBQXPEHU
VLJQ _
VL]H XQVLJQHGBQXPEHU
XQVLJQHGBQXPEHU GHFLPDOBGLJLW^B_GHFLPDOBGLJLW`
GHFLPDOBEDVH G_
'
ELQDU\BEDVH E_
%
RFWDOBEDVH R_
2
KH[BEDVH K_
+
GHFLPDOBGLJLW _________
ELQDU\BGLJLW [_;_]_=__
RFWDOBGLJLW [_;_]_=________
KH[BGLJLW [_;_]_=___________D_E_F_G_H_I_$_%_&_'_(_)
6\QWD[³6\QWD[IRULQWHJHUDQGUHDOQXPEHUV
,QWHJHUFRQVWDQWV
,QWHJHUFRQVWDQWVFDQEHVSHFLÀHGLQGHFLPDOKH[DGHFLPDORFWDORUELQDU\IRUPDW
7KHUHDUHWZRIRUPVWRH[SUHVVLQWHJHUFRQVWDQWV7KHÀUVWIRUPLVDVLPSOHGHFLPDOQXPEHUZKLFKVKDOOEHVSHFLÀHG
DVDVHTXHQFHRIGLJLWVWKURXJKRSWLRQDOO\VWDUWLQJZLWKDSOXVRUPLQXVXQDU\RSHUDWRU7KHVHFRQGIRUPVSHFLÀHV
D VL]HGFRQVWDQWZKLFKVKDOOEHFRPSRVHGRIXSWRWKUHHWRNHQV³DQRSWLRQDOVL]HFRQVWDQWDVLQJOHTXRWHIROORZHG
E\DEDVHIRUPDWFKDUDFWHUDQGWKHGLJLWVUHSUHVHQWLQJWKHYDOXHRIWKHQXPEHU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHÀUVWWRNHQDVL]HFRQVWDQWVKDOOVSHFLI\WKHVL]HRIWKHFRQVWDQWLQWHUPVRILWVH[DFWQXPEHURIELWV,WVKDOOEH
VSHFLÀHGDVDQXQVLJQHGGHFLPDOQXPEHU)RUH[DPSOHWKHVL]HVSHFLÀFDWLRQIRUWZRKH[DGHFLPDOGLJLWVLVEHFDXVH
RQHKH[DGHFLPDOGLJLWUHTXLUHVELWV
7KHVHFRQGWRNHQDEDVHBIRUPDWVKDOOFRQVLVWRIDOHWWHUVSHFLI\LQJWKHEDVHIRUWKHQXPEHUSUHFHGHGE\WKHVLQJOH
TXRWHFKDUDFWHU·/HJDOEDVHVSHFLÀFDWLRQVDUHG'K+R2ERU%IRUWKHEDVHVGHFLPDOKH[DGHFLPDORFWDO
DQGELQDU\UHVSHFWLYHO\
7KHXVHRI[DQG]LQGHÀQLQJWKHYDOXHRIDQXPEHULVFDVHLQVHQVLWLYH
7KHVLQJOHTXRWHDQGWKHEDVHIRUPDWFKDUDFWHUVKDOOQRWEHVHSDUDWHGE\DQ\ZKLWHVSDFH
7KHWKLUGWRNHQDQXQVLJQHGQXPEHUVKDOOFRQVLVWRIGLJLWVWKDWDUHOHJDOIRUWKHVSHFLÀHGEDVHIRUPDW7KHXQVLJQHG
QXPEHUWRNHQVKDOOLPPHGLDWHO\IROORZWKHEDVHIRUPDWRSWLRQDOO\SUHFHGHGE\ZKLWHVSDFH7KHKH[DGHFLPDOGLJLWV
DWRIVKDOOEHFDVHLQVHQVLWLYH
6LPSOHGHFLPDOQXPEHUVZLWKRXWWKHVL]HDQGWKHEDVHIRUPDWVKDOOEHWUHDWHGDVVLJQHGLQWHJHUVZKHUHDVWKHQXPEHUV
VSHFLÀHGZLWKWKHEDVHIRUPDWVKDOOEHWUHDWHGDVXQVLJQHGLQWHJHUV
$SOXVRUDPLQXVRSHUDWRUSUHFHGLQJWKHVL]HFRQVWDQWLVDVLJQIRUWKHFRQVWDQWQXPEHUWKHVL]HFRQVWDQWGRHVQRW
WDNHDVLJQ$SOXVRUPLQXVRSHUDWRUEHWZHHQWKHEDVHIRUPDWDQGWKHQXPEHULVDQLOOHJDOV\QWD[
1HJDWLYHQXPEHUVVKDOOEHUHSUHVHQWHGLQ·VFRPSOHPHQWIRUP
$Q[UHSUHVHQWVWKHXQNQRZQYDOXHLQKH[DGHFLPDORFWDODQGELQDU\FRQVWDQWV$]UHSUHVHQWVWKHKLJKLPSHGDQFH
YDOXH6HHIRUDGLVFXVVLRQRIWKH9HULORJ+'/YDOXHVHW$Q[VKDOOVHWELWVWRXQNQRZQLQWKHKH[DGHFLPDOEDVH
ELWVLQWKHRFWDOEDVHDQGELWLQWKHELQDU\EDVH6LPLODUO\D]VKDOOVHWELWVELWVDQGELWUHVSHFWLYHO\WRWKH
KLJKLPSHGDQFHYDOXH
,IWKHVL]HRIWKHXQVLJQHGQXPEHULVVPDOOHUWKDQWKHVL]HVSHFLÀHGIRUWKHFRQVWDQWWKHXQVLJQHGQXPEHUVKDOOEH
SDGGHGWRWKHOHIWZLWK]HURV,IWKHOHIWPRVWELWLQWKHXQVLJQHGQXPEHULVDQ[RUD]WKHQDQ[RUD]VKDOOEHXVHG
WRSDGWRWKHOHIWUHVSHFWLYHO\
:KHQXVHGLQDQXPEHUWKHTXHVWLRQPDUN"FKDUDFWHULVD9HULORJ+'/DOWHUQDWLYHIRUWKH]FKDUDFWHU,WVHWV
ELWVWRWKHKLJKLPSHGDQFHYDOXHLQKH[DGHFLPDOQXPEHUVELWVLQRFWDODQGELWLQELQDU\7KHTXHVWLRQPDUNFDQ
EHXVHGWRHQKDQFHUHDGDELOLW\LQFDVHVZKHUHWKHKLJKLPSHGDQFHYDOXHLVDGRQ·WFDUHFRQGLWLRQ6HHWKHGLVFXVVLRQ
RIFDVH]DQGFDVH[LQ7KHTXHVWLRQPDUNFKDUDFWHULVDOVRXVHGLQXVHUGHÀQHGSULPLWLYHVWDWHWDEOH6HH
7KHXQGHUVFRUHFKDUDFWHUBVKDOOEHOHJDODQ\ZKHUHLQDQXPEHUH[FHSWDVWKHÀUVWFKDUDFWHU7KHXQGHUVFRUHFKDUDF
WHULVLJQRUHG7KLVIHDWXUHFDQEHXVHGWREUHDNXSORQJQXPEHUVIRUUHDGDELOLW\SXUSRVHV
([DPSOHV
8QVL]HGFRQVWDQWQXPEHUV
LVDGHFLPDOQXPEHU
·K))LVDKH[DGHFLPDOQXPEHU
·R LVDQRFWDOQXPEHU
DI
LVLOOHJDOKH[DGHFLPDOIRUPDWUHTXLUHV·K
6L]HGFRQVWDQWQXPEHUV
6HFWLRQ
,(((
6WG
·E
·'
·E[
·K[
·K]
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LVDELWELQDU\QXPEHU
LVDELWGHFLPDOQXPEHU
LVDELWQXPEHUZLWKWKHOHDVW
VLJQLILFDQWELWXQNQRZQ
LVDELWXQNQRZQQXPEHU
LVDELWKLJKLPSHGDQFHQXPEHU
8VLQJVLJQZLWKFRQVWDQWQXPEHUV
·G
·G
WKLVLVLOOHJDOV\QWD[
WKLVGHILQHVWKHWZR·VFRPSOHPHQWRI
KHOGLQELWV³HTXLYDOHQWWR·G
$XWRPDWLFOHIWSDGGLQJ
UHJ>@DEFG
LQLWLDOEHJLQ
D ·K[
\LHOGV[[[
E ·K[
\LHOGV[
F ·K]
\LHOGV]]
G ·K]
\LHOGV]
HQG
8VLQJXQGHUVFRUHFKDUDFWHULQQXPEHUV
BB
·EBBB
·KDEBI
127(6
³$VL]HGQHJDWLYHQXPEHULVQRWVLJQH[WHQGHGZKHQDVVLJQHGWRDUHJLVWHUGDWDW\SH
³(DFKRIWKHWKUHHWRNHQVIRUVSHFLI\LQJDQXPEHUPD\EHPDFURVXEVWLWXWHG
³7KHQXPEHURIELWVWKDWPDNHXSDQXQVL]HGQXPEHUZKLFKLVDVLPSOHGHFLPDOQXPEHURUDQXPEHUZLWKRXWWKHVL]HVSHFLÀFD
WLRQVKDOOEHDWOHDVW
5HDOFRQVWDQWV
7KHUHDOFRQVWDQWQXPEHUVVKDOOEHUHSUHVHQWHGDVGHVFULEHGE\,(((6WG>%@DQ,(((VWDQGDUGIRUGRX
EOHSUHFLVLRQÁRDWLQJSRLQWQXPEHUV
5HDOQXPEHUVFDQEHVSHFLÀHGLQHLWKHUGHFLPDOQRWDWLRQIRUH[DPSOHRULQVFLHQWLÀFQRWDWLRQIRUH[DPSOH
HZKLFKLQGLFDWHVPXOWLSOLHGE\WRWKHHLJKWKSRZHU5HDOQXPEHUVH[SUHVVHGZLWKDGHFLPDOSRLQWVKDOO
KDYHDWOHDVWRQHGLJLWRQHDFKVLGHRIWKHGHFLPDOSRLQW
([DPSOHV
7KHQXPEHUVLQEUDFNHWVFRUUHVSRQGWRWKRVHRIWKHELEOLRJUDSK\LQ$QQH[+
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
(WKHH[SRQHQWV\PEROFDQEHHRU(
H
H
(
(
BBHXQGHUVFRUHVDUHLJQRUHG
7KHIROORZLQJDUHLQYDOLGIRUPVRIUHDOQXPEHUVEHFDXVHWKH\GRQRWKDYHDWOHDVWRQHGLJLWRQHDFKVLGHRIWKHGHFL
PDOSRLQW
(
H
&RQYHUVLRQ
5HDOQXPEHUVVKDOOEHFRQYHUWHGWRLQWHJHUVE\URXQGLQJWKHUHDOQXPEHUWRWKHQHDUHVWLQWHJHUUDWKHUWKDQE\WUXQFDW
LQJLW,PSOLFLWFRQYHUVLRQVKDOOWDNHSODFHZKHQDUHDOQXPEHULVDVVLJQHGWRDQLQWHJHU7KHWLHVVKDOOEHURXQGHG
DZD\IURP]HUR
([DPSOHV
7KHUHDOQXPEHUVDQGERWKEHFRPHZKHQFRQYHUWHGWRDQLQWHJHUDQGEHFRPHV
&RQYHUWLQJWRLQWHJHU\LHOGVFRQYHUWLQJWRLQWHJHU\LHOGV
6WULQJV
$VWULQJLVDVHTXHQFHRIFKDUDFWHUVHQFORVHGE\GRXEOHTXRWHV´µDQGFRQWDLQHGRQDVLQJOHOLQH6WULQJVXVHGDV
RSHUDQGVLQH[SUHVVLRQVDQGDVVLJQPHQWVVKDOOEHWUHDWHGDVXQVLJQHGLQWHJHUFRQVWDQWVUHSUHVHQWHGE\DVHTXHQFHRI
ELW$6&,,YDOXHVZLWKRQHELW$6&,,YDOXHUHSUHVHQWLQJRQHFKDUDFWHU
6WULQJYDULDEOHGHFODUDWLRQ
6WULQJYDULDEOHVDUHYDULDEOHVRIUHJLVWHUW\SHVHHZLWKZLGWKHTXDOWRWKHQXPEHURIFKDUDFWHUVLQWKHVWULQJPXO
WLSOLHGE\
([DPSOH
7RVWRUHWKHWZHOYHFKDUDFWHUVWULQJ´+HOORZRUOGµUHTXLUHVDUHJLVWHURUELWVZLGH
UHJ>@VWULQJYDU
LQLWLDOEHJLQ
VWULQJYDU +HOORZRUOG
HQG
6WULQJPDQLSXODWLRQ
6WULQJV FDQ EH PDQLSXODWHG XVLQJ WKH9HULORJ +'/ RSHUDWRUV7KH YDOXH EHLQJ PDQLSXODWHG E\ WKH RSHUDWRU LV WKH
VHTXHQFHRIELW$6&,,YDOXHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
PRGXOHVWULQJBWHVW
UHJ>@VWULQJYDU
LQLWLDOEHJLQ
VWULQJYDU +HOORZRUOG
GLVSOD\VLVVWRUHGDVKVWULQJYDUVWULQJYDU
VWULQJYDU ^VWULQJYDU`
GLVSOD\VLVVWRUHGDVKVWULQJYDUVWULQJYDU
HQG
HQGPRGXOH
7KHRXWSXWLV
+HOORZRUOGLVVWRUHGDVFFIIF
+HOORZRUOGLVVWRUHGDVFFIIF
127(³:KHQDYDULDEOHLVODUJHUWKDQUHTXLUHGWRKROGDYDOXHEHLQJDVVLJQHGWKHFRQWHQWVRQWKHOHIWDUHSDGGHGZLWK]HURVDIWHU
WKHDVVLJQPHQW7KLVLVFRQVLVWHQWZLWKWKHSDGGLQJWKDWRFFXUVGXULQJDVVLJQPHQWRIQRQVWULQJYDOXHV,IDVWULQJLVODUJHUWKDQWKH
GHVWLQDWLRQVWULQJYDULDEOHWKHVWULQJLVWUXQFDWHGWRWKHOHIWDQGWKHOHIWPRVWFKDUDFWHUVZLOOEHORVW
6SHFLDOFKDUDFWHUVLQVWULQJV
&HUWDLQFKDUDFWHUVFDQRQO\EHXVHGLQVWULQJVZKHQSUHFHGHGE\DQLQWURGXFWRU\FKDUDFWHUFDOOHGDQHVFDSHFKDUDFWHU
7DEOHOLVWVWKHVHFKDUDFWHUVLQWKHULJKWKDQGFROXPQZLWKWKHHVFDSHVHTXHQFHWKDWUHSUHVHQWVWKHFKDUDFWHULQWKH
OHIWKDQGFROXPQ
7DEOH³6SHFLI\LQJVSHFLDOFKDUDFWHUVLQVWULQJ
(VFDSH
VWULQJ
&KDUDFWHUSURGXFHGE\
HVFDSHVWULQJ
?Q
1HZOLQHFKDUDFWHU
?W
7DEFKDUDFWHU
??
?FKDUDFWHU
?
FKDUDFWHU
?GGG
$FKDUDFWHUVSHFLÀHGLQ²RFWDOGLJLWV
)G)
,GHQWLILHUVNH\ZRUGVDQGV\VWHPQDPHV
$QLGHQWLÀHULVXVHGWRJLYHDQREMHFWDXQLTXHQDPHVRLWFDQEHUHIHUHQFHG$QLGHQWLÀHUVKDOOEHDQ\VHTXHQFHRIOHW
WHUVGLJLWVGROODUVLJQVDQGXQGHUVFRUHFKDUDFWHUVB
7KHÀUVWFKDUDFWHURIDQLGHQWLÀHUVKDOOQRWEHDGLJLWRULWFDQEHDOHWWHURUDQXQGHUVFRUH,GHQWLÀHUVVKDOOEHFDVH
VHQVLWLYH
([DPSOHV
VKLIWUHJBD
EXVDBLQGH[
HUURUBFRQGLWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PHUJHBDE
BEXV
Q
127(³,PSOHPHQWDWLRQVPD\VHWDOLPLWRQWKHPD[LPXPOHQJWKRILGHQWLÀHUVEXWWKH\VKDOODWOHDVWEHFKDUDFWHUV,IDQ
LGHQWLÀHUH[FHHGVWKHLPSOHPHQWDWLRQVSHFLÀHGOHQJWKOLPLWDQHUURUVKDOOEHUHSRUWHG
(VFDSHGLGHQWLÀHUV
(VFDSHGLGHQWLÀHUVVKDOOVWDUWZLWKWKHEDFNVODVKFKDUDFWHU?DQGHQGZLWKZKLWHVSDFHVSDFHWDEQHZOLQH7KH\
SURYLGHDPHDQVRILQFOXGLQJDQ\RIWKHSULQWDEOH$6&,,FKDUDFWHUVLQDQLGHQWLÀHUWKHGHFLPDOYDOXHVWKURXJK
RUWKURXJK(LQKH[DGHFLPDO
1HLWKHU WKH OHDGLQJ EDFNVODVK FKDUDFWHU QRU WKH WHUPLQDWLQJ ZKLWH VSDFH LV FRQVLGHUHG WR EH SDUW RI WKH LGHQWLÀHU
7KHUHIRUHDQHVFDSHGLGHQWLÀHU?FSXLVWUHDWHGWKHVDPHDVDQRQHVFDSHGLGHQWLÀHUFSX
([DPSOHV
?EXVDLQGH[
?FORFN
?HUURUFRQGLWLRQ
?QHW?QHW
?^DE`
?DEF
.H\ZRUGV
.H\ZRUGVDUHSUHGHÀQHGQRQHVFDSHGLGHQWLÀHUVWKDWDUHXVHGWRGHÀQHWKHODQJXDJHFRQVWUXFWV$9HULORJ+'/NH\
ZRUGSUHFHGHGE\DQHVFDSHFKDUDFWHULVQRWLQWHUSUHWHGDVDNH\ZRUG
$OONH\ZRUGVDUHGHÀQHGLQORZHUFDVHRQO\$QQH[%JLYHVDOLVWRIDOOGHÀQHGNH\ZRUGV
6\VWHPWDVNVDQGIXQFWLRQV
7KH FKDUDFWHU LQWURGXFHV D ODQJXDJH FRQVWUXFW WKDW HQDEOHV GHYHORSPHQW RI XVHUGHÀQHG WDVNV DQG IXQFWLRQV$
QDPHIROORZLQJWKHLVLQWHUSUHWHGDVDV\VWHPWDVNRUDV\VWHPIXQFWLRQ
7KHV\QWD[IRUDV\VWHPWDVNRUIXQFWLRQLVJLYHQLQ6\QWD[
V\VWHPBWDVNBRUBIXQFWLRQ
V\VWHPBWDVNBLGHQWLILHU>OLVWBRIBDUJXPHQWV@
_V\VWHPBIXQFWLRQBLGHQWLILHU>OLVWBRIBDUJXPHQWV@
OLVWBRIBDUJXPHQWV
DUJXPHQW^>DUJXPHQW@`
DUJXPHQW
H[SUHVVLRQ
6\QWD[³6\QWD[IRUV\VWHPWDVNVDQGIXQFWLRQV
7KHLGHQWLÀHUV\VWHPWDVNRUIXQFWLRQFDQEHGHÀQHGLQWKUHHSODFHV
³ $VWDQGDUGVHWRILGHQWLÀHUV\VWHPWDVNVDQGIXQFWLRQVDVGHÀQHGLQ6HFWLRQ
6HFWLRQ
,(((
6WG
³ $GGLWLRQDOLGHQWLÀHUV\VWHPWDVNVDQGIXQFWLRQVGHÀQHGXVLQJWKH3/,DVGHVFULEHGLQVHFWLRQVDQG
³ $GGLWLRQDOLGHQWLÀHUV\VWHPWDVNVDQGIXQFWLRQVGHÀQHGE\VRIWZDUHLPSOHPHQWDWLRQV
$Q\YDOLGLGHQWLÀHULQFOXGLQJNH\ZRUGVDOUHDG\LQXVHLQFRQWH[WVRWKHUWKDQWKLVFRQVWUXFWFDQEHXVHGDVDV\VWHP
WDVNRUIXQFWLRQQDPH7KHV\VWHPWDVNVDQGIXQFWLRQVGHVFULEHGLQ6HFWLRQDUHSDUWRIWKLVVWDQGDUG$GGLWLRQDO
V\VWHPWDVNVDQGIXQFWLRQVZLWKWKHLGHQWLÀHUFRQVWUXFWDUHQRWSDUWRIWKLVVWDQGDUG
([DPSOHV
GLVSOD\GLVSOD\DPHVVDJH
ILQLVK
&RPSLOHUGLUHFWLYHV
7KH C FKDUDFWHU WKH$6&,, YDOXH FDOOHG RSHQ TXRWH RU DFFHQW JUDYH LQWURGXFHV D ODQJXDJH FRQVWUXFW XVHG WR
LPSOHPHQWFRPSLOHUGLUHFWLYHV7KHFRPSLOHUEHKDYLRUGLFWDWHGE\DFRPSLOHUGLUHFWLYHVKDOOWDNHHIIHFWDVVRRQDVWKH
FRPSLOHUUHDGVWKHGLUHFWLYH7KHGLUHFWLYHVKDOOUHPDLQLQHIIHFWIRUWKHUHVWRIWKHFRPSLODWLRQXQOHVVDGLIIHUHQWFRP
SLOHU GLUHFWLYH VSHFLÀHV RWKHUZLVH $ FRPSLOHU GLUHFWLYH LQ RQH GHVFULSWLRQ ÀOH FDQ WKHUHIRUH FRQWURO FRPSLODWLRQ
EHKDYLRULQPXOWLSOHGHVFULSWLRQÀOHV
7KHCLGHQWLÀHUFRPSLOHUGLUHFWLYHFRQVWUXFWFDQEHGHÀQHGLQWZRSODFHV
³ $VWDQGDUGVHWRICLGHQWLÀHUFRPSLOHUGLUHFWLYHVGHÀQHGLQ6HFWLRQ
³ $GGLWLRQDOCLGHQWLÀHUFRPSLOHUGLUHFWLYHVGHÀQHGE\VRIWZDUHLPSOHPHQWDWLRQV
$Q\YDOLGLGHQWLÀHULQFOXGLQJNH\ZRUGVDOUHDG\LQXVHLQFRQWH[WVRWKHUWKDQWKLVFRQVWUXFWFDQEHXVHGDVDFRPSLOHU
GLUHFWLYHQDPH7KHFRPSLOHUGLUHFWLYHVGHVFULEHGLQ6HFWLRQDUHSDUWRIWKLVVWDQGDUG$GGLWLRQDOFRPSLOHUGLUHF
WLYHVZLWKWKHCLGHQWLÀHUFRQVWUXFWDUHQRWSDUWRIWKLVVWDQGDUG
([DPSOH
CGHILQHZRUGVL]H
6HFWLRQ
,(((
6WG
6HFWLRQ
'DWDW\SHV
7KHVHWRI9HULORJ+'/GDWDW\SHVLVGHVLJQHGWRUHSUHVHQWWKHGDWDVWRUDJHDQGWUDQVPLVVLRQHOHPHQWVIRXQGLQGLJLWDO
KDUGZDUH
9DOXHVHW
7KH9HULORJ+'/YDOXHVHWFRQVLVWVRIIRXUEDVLFYDOXHV
UHSUHVHQWVDORJLF]HURRUDIDOVHFRQGLWLRQ
UHSUHVHQWVDORJLFRQHRUDWUXHFRQGLWLRQ
[UHSUHVHQWVDQXQNQRZQORJLFYDOXH
]UHSUHVHQWVDKLJKLPSHGDQFHVWDWH
7KHYDOXHVDQGDUHORJLFDOFRPSOHPHQWVRIRQHDQRWKHU
:KHQWKH]YDOXHLVSUHVHQWDWWKHLQSXWRIDJDWHRUZKHQLWLVHQFRXQWHUHGLQDQH[SUHVVLRQWKHHIIHFWLVXVXDOO\WKH
VDPHDVDQ [YDOXH1RWDEOHH[FHSWLRQVDUHWKHPHWDOR[LGHVHPLFRQGXFWRU026SULPLWLYHVZKLFKFDQSDVVWKH ]
YDOXH
$OPRVWDOORIWKHGDWDW\SHVLQWKH9HULORJ+'/VWRUHDOOIRXUEDVLFYDOXHV7KHH[FHSWLRQLVWKHHYHQWW\SHVHH
ZKLFKKDVQRVWRUDJH$OOELWVRIYHFWRUVFDQEHLQGHSHQGHQWO\VHWWRRQHRIWKHIRXUEDVLFYDOXHV
7KH ODQJXDJH LQFOXGHV VWUHQJWK LQIRUPDWLRQ LQ DGGLWLRQ WR WKH EDVLF YDOXH LQIRUPDWLRQ IRU QHW YDULDEOHV 7KLV LV
GHVFULEHGLQGHWDLOLQ6HFWLRQ
1HWVDQGUHJLVWHUV
7KHUHDUHWZRPDLQJURXSVRIGDWDW\SHVWKHUHJLVWHUGDWDW\SHVDQGWKHQHWGDWDW\SHV7KHVHWZRJURXSVGLIIHULQWKH
ZD\WKDWWKH\DUHDVVLJQHGDQGKROGYDOXHV7KH\DOVRUHSUHVHQWGLIIHUHQWKDUGZDUHVWUXFWXUHV
1HWV
7KHQHWGDWDW\SHVVKDOOUHSUHVHQWSK\VLFDOFRQQHFWLRQVEHWZHHQVWUXFWXUDOHQWLWLHVVXFKDVJDWHV$QHWVKDOOQRWVWRUH
DYDOXHH[FHSWIRUWKHWULUHJQHW,QVWHDGLWVYDOXHVKDOOEHGHWHUPLQHGE\WKHYDOXHVRILWVGULYHUVVXFKDVDFRQWLQX
RXVDVVLJQPHQWRUDJDWH6HH6HFWLRQDQG6HFWLRQIRUGHÀQLWLRQVRIWKHVHFRQVWUXFWV,IQRGULYHULVFRQQHFWHGWRD
QHWLWVYDOXHVKDOOEHKLJKLPSHGDQFH]XQOHVVWKHQHWLVDWULUHJLQZKLFKFDVHLWVKDOOKROGWKHSUHYLRXVO\GULYHQ
YDOXH
7KHV\QWD[IRUQHWGHFODUDWLRQVLVJLYHQLQ6\QWD[
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
QHWBGHFODUDWLRQ QHWBW\SH>YHFWRUHG_VFDODUHG@>UDQJH@>GHOD\@OLVWBRIBQHWBLGHQWLILHUV
_WULUHJ>YHFWRUHG_VFDODUHG@>FKDUJHBVWUHQJWK@>UDQJH@>GHOD\@
OLVWBRIBQHWBLGHQWLILHUV
_QHWBW\SH>YHFWRUHG_VFDODUHG@>GULYHBVWUHQJWK@>UDQJH@>GHOD\@
OLVWBRIBQHWBGHFOBDVVLJQPHQWV
QHWBW\SH ZLUH_WUL_WUL_VXSSO\_ZDQG_WULDQG_WUL_VXSSO\_ZRU_WULRU
UDQJH >PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
GULYHBVWUHQJWK VWUHQJWKVWUHQJWK
_VWUHQJWKVWUHQJWK
_VWUHQJWKKLJK]
_VWUHQJWKKLJK]
_KLJK]VWUHQJWK
_KLJK]VWUHQJWK
VWUHQJWK VXSSO\_VWURQJ_SXOO_ZHDN
VWUHQJWK VXSSO\_VWURQJ_SXOO_ZHDN
FKDUJHBVWUHQJWK VPDOO_PHGLXP_ODUJH
GHOD\ GHOD\BYDOXH_GHOD\BYDOXH>GHOD\BYDOXH>GHOD\BYDOXH@@
GHOD\BYDOXH XQVLJQHGBQXPEHU_SDUDPHWHUBLGHQWLILHU_
FRQVWDQWBPLQW\SPD[BH[SUHVVLRQ
OLVWBRIBQHWBGHFOBDVVLJQPHQWV QHWBGHFOBDVVLJQPHQW^QHWBGHFOBDVVLJQPHQW`
QHWBGHFOBDVVLJQPHQW QHWBLGHQWLILHU H[SUHVVLRQ
6\QWD[³6\QWD[IRUQHWGHFODUDWLRQ
7KHÀUVWWZRIRUPVRIQHWGHFODUDWLRQDUHGHVFULEHGLQWKLVVHFWLRQ7KHWKLUGIRUPFDOOHGQHWDVVLJQPHQWLVGHVFULEHG
LQ6HFWLRQ
5HJLVWHUV
$ UHJLVWHULVDQDEVWUDFWLRQRIDGDWDVWRUDJHHOHPHQW7KHNH\ZRUGIRUWKHUHJLVWHUGDWDW\SHLV UHJ$UHJLVWHUVKDOO
VWRUHDYDOXHIURPRQHDVVLJQPHQWWRWKHQH[W$QDVVLJQPHQWVWDWHPHQWLQDSURFHGXUHDFWVDVDWULJJHUWKDWFKDQJHV
WKHYDOXHLQWKHGDWDVWRUDJHHOHPHQW7KHGHIDXOWLQLWLDOL]DWLRQYDOXHIRUDUHJGDWDW\SHVKDOOEHWKHXQNQRZQYDOXH
[
7KHV\QWD[IRUUHJGHFODUDWLRQVLVJLYHQLQ6\QWD[
UHJBGHFODUDWLRQ UHJ>UDQJH@OLVWBRIBUHJLVWHUBLGHQWLILHUV
WLPHBGHFODUDWLRQ WLPHOLVWBRIBUHJLVWHUBLGHQWLILHUV
LQWHJHUBGHFODUDWLRQ LQWHJHUOLVWBRIBUHJLVWHUBLGHQWLILHUV
UHDOBGHFODUDWLRQ UHDOOLVWBRIBUHDOBLGHQWLILHUV
UHDOWLPHBGHFODUDWLRQ UHDOWLPHOLVWBRIBUHDOBLGHQWLILHUV
OLVWBRIBUHJLVWHUBLGHQWLILHUV UHJLVWHUBQDPH^UHJLVWHUBQDPH`
UHJLVWHUBQDPH UHJLVWHUBLGHQWLILHU
_PHPRU\BLGHQWLILHU>XSSHUBOLPLWBFRQVWDQWBH[SUHVVLRQ
ORZHUBOLPLWBFRQVWDQWBH[SUHVVLRQ@
6\QWD[³6\QWD[IRUUHJGHFODUDWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
,IDVHWRIQHWVRUUHJLVWHUVVKDUHWKHVDPHFKDUDFWHULVWLFVWKH\FDQEHGHFODUHGLQWKHVDPHGHFODUDWLRQVWDWHPHQW
&$87,21
5HJLVWHUV FDQ EH DVVLJQHG QHJDWLYH YDOXHV EXW
ZKHQ D UHJLVWHU LV DQ RSHUDQG LQ DQ H[SUHVVLRQ LWV
YDOXH VKDOO EH WUHDWHG DV DQ XQVLJQHG SRVLWLYH
YDOXH )RU H[DPSOH D PLQXV RQH LQ D ELW
UHJLVWHU VKDOO IXQFWLRQ DV WKH QXPEHU LI WKH
UHJLVWHU LV DQ H[SUHVVLRQ RSHUDQG 6HH IRU
PRUH LQIRUPDWLRQ RQ QXPHULF FRQYHQWLRQV LQ
H[SUHVVLRQV
9HFWRUV
$QHWRUUHJGHFODUDWLRQZLWKRXWDUDQJHVSHFLÀFDWLRQVKDOOEHFRQVLGHUHGELWZLGHDQGLVNQRZQDVDVFDODU0XOWL
SOHELWQHWDQGUHJGDWDW\SHVVKDOOEHGHFODUHGE\VSHFLI\LQJDUDQJHZKLFKLVNQRZQDVDYHFWRU
6SHFLI\LQJYHFWRUV
7KHUDQJHVSHFLÀFDWLRQJLYHVDGGUHVVHVWRWKHLQGLYLGXDOELWVLQDPXOWLELWQHWRUUHJLVWHU7KHPRVWVLJQLÀFDQWELW
VSHFLÀHGE\WKHPVEFRQVWDQWH[SUHVVLRQLVWKHOHIWKDQGYDOXHLQWKHUDQJHDQGWKHOHDVWVLJQLÀFDQWELWVSHFLÀHGE\
WKHOVEFRQVWDQWH[SUHVVLRQLVWKHULJKWKDQGYDOXHLQWKHUDQJH
%RWKPVEFRQVWDQWH[SUHVVLRQDQGOVEFRQVWDQWH[SUHVVLRQVKDOOEHFRQVWDQWH[SUHVVLRQV7KHPVEDQGOVEFRQVWDQW
H[SUHVVLRQV FDQ EH DQ\ YDOXH³SRVLWLYH QHJDWLYH RU ]HUR7KH OVE FRQVWDQW H[SUHVVLRQ FDQ EH D JUHDWHU HTXDO RU
OHVVHUYDOXHWKDQPVEFRQVWDQWH[SUHVVLRQ
9HFWRUQHWVDQGUHJLVWHUVVKDOOREH\ODZVRIDULWKPHWLFPRGXORWRWKHSRZHUQQZKHUHQLVWKHQXPEHURIELWVLQ
WKHYHFWRU9HFWRUQHWVDQGUHJLVWHUVVKDOOEHWUHDWHGDVXQVLJQHGTXDQWLWLHV
([DPSOHV
ZDQGZ
WUL>@EXVD
WULUHJVPDOOVWRUHLW
UHJD
UHJ>@Y
UHJ>@E
ZLUHZZ
UHJ>@[\]
DVFDODUQHWRIW\SH´ZDQGµ
DWULVWDWHELWEXV
DFKDUJHVWRUDJHQRGHRIVWUHQJWKVPDOO
DVFDODUUHJLVWHU
DELWYHFWRUUHJLVWHUPDGHXSRIIURPPRVWWR
OHDVWVLJQLÀFDQWY>@Y>@Y>@DQGY>@
DELWYHFWRUUHJLVWHU
GHFODUHVWZRZLUHV
GHFODUHVWKUHHELWUHJLVWHUV
127(6
³,PSOHPHQWDWLRQVPD\VHWDOLPLWRQWKHPD[LPXPOHQJWKRIDYHFWRUEXWWKH\ZLOODWOHDVWEHELWV
³,PSOHPHQWDWLRQVGRQRWKDYHWRGHWHFWRYHUÁRZRILQWHJHURSHUDWLRQV
9HFWRUQHWDFFHVVLELOLW\
9HFWRUHGDQGVFDODUHGVKDOOEHRSWLRQDODGYLVRU\NH\ZRUGVWREHXVHGLQYHFWRUQHWRUUHJGHFODUDWLRQ,IWKHVHNH\
ZRUGVDUHLPSOHPHQWHGFHUWDLQRSHUDWLRQVRQYHFWRUVPD\EHUHVWULFWHG,IWKHNH\ZRUGYHFWRUHGLVXVHGELWDQGSDUW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
VHOHFWVDQGVWUHQJWKVSHFLÀFDWLRQVPD\QRWEHSHUPLWWHGDQGWKH3/,PD\FRQVLGHUWKHREMHFWXQH[SDQGHG,IWKHNH\
ZRUG VFDODUHG LV XVHG ELW DQG SDUW VHOHFWV RI WKH REMHFW VKDOO EH SHUPLWWHG DQG WKH 3/, VKDOO FRQVLGHU WKH REMHFW
H[SDQGHG
([DPSOHV
WULVFDODUHG>@EXV DEXVWKDWZLOOEHH[SDQGHG
WULYHFWRUHG>@GDWD DEXVWKDWPD\RUPD\QRWEHH[SDQGHG
6WUHQJWKV
7KHUHDUHWZRW\SHVRIVWUHQJWKVWKDWFDQEHVSHFLÀHGLQDQHWGHFODUDWLRQ7KH\DUHDVIROORZV
FKDUJHVWUHQJWK 6KDOOEHXVHGZKHQGHFODULQJDQHWRIW\SHWULUHJ
GULYHVWUHQJWK
6KDOOEHXVHGZKHQSODFLQJDFRQWLQXRXVDVVLJQPHQWRQDQHWLQWKHVDPHVWDWHPHQWWKDWGHFODUHV
WKHQHW
*DWHGHFODUDWLRQVFDQDOVRVSHFLI\DGULYHVWUHQJWK6HH6HFWLRQIRUPRUHLQIRUPDWLRQRQJDWHVDQGIRULQIRUPDWLRQ
RQVWUHQJWKV
&KDUJHVWUHQJWK
7KHFKDUJHVWUHQJWKVSHFLÀFDWLRQVKDOOEHXVHGRQO\ZLWKWULUHJQHWV$WULUHJQHWVKDOOEHXVHGWRPRGHOFKDUJHVWRU
DJHFKDUJHVWUHQJWKVKDOOVSHFLI\WKHUHODWLYHVL]HRIWKHFDSDFLWDQFHLQGLFDWHGE\RQHRIWKHIROORZLQJNH\ZRUGV
³ 6PDOO
³ 0HGLXP
³ /DUJH
7KHGHIDXOWFKDUJHVWUHQJWKRIDWULUHJQHWVKDOOEHPHGLXP
$WULUHJQHWFDQPRGHODFKDUJHVWRUDJHQRGHZKRVHFKDUJHGHFD\VRYHUWLPH7KHVLPXODWLRQWLPHRIDFKDUJHGHFD\
VKDOOEHVSHFLÀHGLQWKHGHOD\VSHFLÀFDWLRQIRUWKHWULUHJQHWVHH
'ULYHVWUHQJWK
7KH GULYH VWUHQJWK VSHFLÀFDWLRQ DOORZV D FRQWLQXRXV DVVLJQPHQW WR EH SODFHG RQ D QHW LQ WKH VDPH VWDWHPHQW WKDW
GHFODUHVWKDWQHW6HH6HFWLRQIRUPRUHGHWDLOV1HWVWUHQJWKSURSHUWLHVDUHGHVFULEHGLQGHWDLOLQ6HFWLRQ
,PSOLFLWGHFODUDWLRQV
7KHV\QWD[VKRZQLQVKDOOEHXVHGWRGHFODUHQHWVDQGUHJLVWHUVH[SOLFLWO\,QWKHDEVHQFHRIDQH[SOLFLWGHFODUDWLRQ
RIDQHWRUDUHJLVWHUVWDWHPHQWVIRUJDWHXVHUGHÀQHGSULPLWLYHDQGPRGXOHLQVWDQWLDWLRQVVKDOODVVXPHDQLPSOLFLW
QHWGHFODUDWLRQ7KLVKDSSHQVZKHQDQDPHLVXVHGLQWKHWHUPLQDOOLVWRIDQLQVWDQFHRIDJDWHDXVHUGHÀQHGSULPL
WLYHRUDPRGXOHWKDWKDVQRWEHHQH[SOLFLWO\GHFODUHGSUHYLRXVO\LQRQHRIWKHGHFODUDWLRQVWDWHPHQWVRIWKHLQVWDQWLDW
LQJPRGXOH6HH
7KHVHLPSOLFLWO\GHFODUHGQHWVVKDOOEHWUHDWHGDVVFDODUQHWVRIW\SHZLUH6HH6HFWLRQIRUDGLVFXVVLRQRIFRQWURORI
WKHW\SHIRULPSOLFLWO\GHFODUHGQHWVZLWKWKHCGHIDXOWBQHWW\SHFRPSLOHUGLUHFWLYH
1HWLQLWLDOL]DWLRQ
7KHGHIDXOWLQLWLDOL]DWLRQYDOXHIRUDQHWVKDOOEHWKHYDOXH]1HWVZLWKGULYHUVVKDOODVVXPHWKHRXWSXWYDOXHRIWKHLU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
GULYHUV7KHWULUHJQHWLVDQH[FHSWLRQ7KHWULUHJQHWVKDOOGHIDXOWWRWKHYDOXH[ZLWKWKHVWUHQJWKVSHFLÀHGLQWKHQHW
GHFODUDWLRQVPDOOPHGLXPRUODUJH
1HWW\SHV
7KHUHDUHVHYHUDOGLVWLQFWW\SHVRIQHWVDVVKRZQLQ7DEOH
7DEOH³1HWW\SHV
ZLUH
WUL
WUL
VXSSO\
ZDQG
WULDQG
WUL
VXSSO\
ZRU
WULRU
WULUHJ
:LUHDQGWULQHWV
7KHZLUHDQGWULQHWVFRQQHFWHOHPHQWV7KHQHWW\SHVZLUHDQGWULVKDOOEHLGHQWLFDOLQWKHLUV\QWD[DQGIXQFWLRQVWZR
QDPHVDUHSURYLGHGVRWKDWWKHQDPHRIDQHWFDQLQGLFDWHWKHSXUSRVHRIWKHQHWLQWKDWPRGHO$ZLUHQHWFDQEHXVHG
IRUQHWVWKDWDUHGULYHQE\DVLQJOHJDWHRUFRQWLQXRXVDVVLJQPHQW7KHWULQHWW\SHFDQEHXVHGZKHUHPXOWLSOHGULYHUV
GULYHDQHW
/RJLFDOFRQÁLFWVIURPPXOWLSOHVRXUFHVRQDZLUHRUDWULQHWUHVXOWLQXQNQRZQYDOXHVXQOHVVWKHQHWLVFRQWUROOHGE\
ORJLFVWUHQJWK
7DEOHLVDWUXWKWDEOHIRUUHVROYLQJPXOWLSOHGULYHUVRQZLUHDQGWULQHWV1RWHWKDWLWDVVXPHVHTXDOVWUHQJWKVIRU
ERWKGULYHUV3OHDVHUHIHUWRIRUDGLVFXVVLRQRIORJLFVWUHQJWKPRGHOLQJ
7DEOH³7UXWKWDEOHIRUZLUHDQGWULQHWV
ZLUH
WUL
[
]
[
[
[
[
[
[
[
[
[
]
[
]
:LUHGQHWV
:LUHGQHWVDUHRIW\SHZRUZDQGWULRUDQGWULDQGDQGDUHXVHGWRPRGHOZLUHGORJLFFRQÀJXUDWLRQV:LUHGQHWVXVH
GLIIHUHQWWUXWKWDEOHVWRUHVROYHWKHFRQÁLFWVWKDWUHVXOWZKHQPXOWLSOHGULYHUVGULYHWKHVDPHQHW7KHZRUDQGWULRU
QHWVVKDOOFUHDWHZLUHGRUFRQÀJXUDWLRQVVXFKWKDWZKHQDQ\RIWKHGULYHUVLVWKHUHVXOWLQJYDOXHRIWKHQHWLV7KH
ZDQGDQGWULDQGQHWVVKDOOFUHDWHZLUHGDQGFRQÀJXUDWLRQVVXFKWKDWLIDQ\GULYHULVWKHYDOXHRIWKHQHWLV
7KHQHWW\SHVZRUDQGWULRUVKDOOEHLGHQWLFDOLQWKHLUV\QWD[DQGIXQFWLRQDOLW\7KHQHWW\SHVZDQGDQGWULDQGVKDOOEH
LGHQWLFDO LQ WKHLU V\QWD[ DQG IXQFWLRQDOLW\ 7DEOHV DQG JLYH WKH WUXWK WDEOHV IRU ZLUHG QHWV 1RWH WKDW WKH\
DVVXPHHTXDOVWUHQJWKVIRUERWKGULYHUV6HHIRUDGLVFXVVLRQRIORJLFVWUHQJWKPRGHOLQJ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³7UXWKWDEOHVIRUZDQGDQGWULDQGQHWV
ZDQG
WULDQG
[
]
[
[
[
[
[
]
[
]
7DEOH³7UXWKWDEOHVIRUZRUDQGWULRUQHWV
ZRU
WULRU
[
]
[
[
[
[
[
]
[
]
7ULUHJQHW
7KHWULUHJQHWVWRUHVDYDOXHDQGLVXVHGWRPRGHOFKDUJHVWRUDJHQRGHV$WULUHJQHWFDQEHLQRQHRIWZRVWDWHV
GULYHQVWDWH
:KHQDWOHDVWRQHGULYHURIDWULUHJQHWKDVDYDOXHRIRU[WKHUHVROYHGYDOXHSURSDJDWHVLQWR
WKHWULUHJQHWDQGLVWKHGULYHQYDOXHRIWKHWULUHJQHW
FDSDFLWLYHVWDWH :KHQDOOWKHGULYHUVRIDWULUHJQHWDUHDWWKHKLJKLPSHGDQFHYDOXH]WKHWULUHJQHWUHWDLQVLWVODVW
GULYHQYDOXHWKHKLJKLPSHGDQFHYDOXHGRHVQRWSURSDJDWHIURPWKHGULYHUWRWKHWULUHJ
7KHVWUHQJWKRIWKHYDOXHRQWKHWULUHJQHWLQWKHFDSDFLWLYHVWDWHFDQEHVPDOOPHGLXPRUODUJHGHSHQGLQJRQWKH
VL]HVSHFLÀHGLQWKHGHFODUDWLRQRIWKHWULUHJQHW7KHVWUHQJWKRIDWULUHJQHWLQWKHGULYHQVWDWHFDQEHVXSSO\VWURQJ
FRGHSXOORUZHDNGHSHQGLQJRQWKHVWUHQJWKRIWKHGULYHU
([DPSOH
)LJXUHVKRZVDVFKHPDWLFWKDWLQFOXGHVDWULUHJQHWZKRVHVL]HLVPHGLXPLWVGULYHUDQGWKHVLPXODWLRQUHVXOWV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
ZLUHD
QPRV
VLPXODWLRQWLPH
ZLUHE
ZLUHF
QPRV
ZLUHD ZLUHE
WULUHJG
ZLUHF
WULUHJG
VWURQJ
VWURQJ
+L=
PHGLXP
)LJXUH³6LPXODWLRQYDOXHVRIDWULUHJDQGLWVGULYHU
D
$WVLPXODWLRQWLPHZLUHDDQGZLUHEKDYHDYDOXHRI$YDOXHRIZLWKDVWURQJVWUHQJWKSURSDJDWHV
IURPWKHDQGJDWHWKURXJKWKHQPRVVZLWFKHVFRQQHFWHGWRHDFKRWKHUE\ZLUHFLQWRWULUHJQHWG
E
$WVLPXODWLRQWLPHZLUHDFKDQJHVYDOXHWRGLVFRQQHFWLQJZLUHFIURPWKHDQGJDWH:KHQZLUHFLVQR
ORQJHUFRQQHFWHGWRWKHDQGJDWHWKHYDOXHRIZLUHFFKDQJHVWR+L=7KHYDOXHRIZLUHEUHPDLQVVRZLUH
FUHPDLQVFRQQHFWHGWRWULUHJQHWGWKURXJKWKHQPRVVZLWFK7KH+L=YDOXHGRHVQRWSURSDJDWHIURPZLUH
FLQWRWULUHJQHWG,QVWHDGWULUHJQHWGHQWHUVWKHFDSDFLWLYHVWDWHVWRULQJLWVODVWGULYHQYDOXHRI,WVWRUHV
WKHZLWKDPHGLXPVWUHQJWK
&DSDFLWLYHQHWZRUNV
$FDSDFLWLYHQHWZRUNLVDFRQQHFWLRQEHWZHHQWZRRUPRUHWULUHJQHWV,QDFDSDFLWLYHQHWZRUNZKRVHWULUHJQHWVDUHLQ
WKHFDSDFLWLYHVWDWHORJLFDQGVWUHQJWKYDOXHVFDQSURSDJDWHEHWZHHQWULUHJQHWV
([DPSOHV
)LJXUHVKRZVDFDSDFLWLYHQHWZRUNLQZKLFKWKHORJLFYDOXHRIVRPHWULUHJQHWVFKDQJHWKHORJLFYDOXHRIRWKHU
WULUHJQHWVRIHTXDORUVPDOOHUVL]H
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
ZLUHD
ZLUHE
ZLUHF
WUDQLIB
QPRVB
WULUHJBVP
WULUHJBOD
ZLUHG
WUDQLIB
QPRVB
WULUHJBPH
WULUHJBPH
VLPXODWLRQ
WLPH
ZLUHD
[
[
ZLUHE ZLUHF
ZLUHG WULUHJBOD WULUHJBVP WULUHJBPH WULUHJBPH
)LJXUH³6LPXODWLRQUHVXOWVRIDFDSDFLWLYHQHWZRUN
,Q)LJXUHWKHFDSDFLWLYHVWUHQJWKRIWULUHJBODQHWLVODUJHWULUHJBPHDQGWULUHJBPHDUHPHGLXP
DQGWULUHJBVPLVVPDOO6LPXODWLRQUHSRUWVWKHIROORZLQJVHTXHQFHRIHYHQWV
D
$WVLPXODWLRQWLPHZLUHDDQGZLUHEKDYHDYDOXHRI7KHZLUHFGULYHVDYDOXHRILQWRWULUHJBOD
DQGWULUHJBVPZLUHGGULYHVDYDOXHRILQWRWULUHJBPHDQGWULUHJBPH
E
$W VLPXODWLRQ WLPH WKH YDOXH RI ZLUH E FKDQJHV WR GLVFRQQHFWLQJ WULUHJBVP DQG WULUHJBPH
IURPWKHLUGULYHUV7KHVHWULUHJQHWVHQWHUWKHFDSDFLWLYHVWDWHDQGVWRUHWKHYDOXHWKHLUODVWGULYHQYDOXH
F
$WVLPXODWLRQWLPHZLUHFGULYHVDYDOXHRILQWRWULUHJBOD
G
$WVLPXODWLRQWLPHZLUHGGULYHVDYDOXHRILQWRWULUHJBPH
H
$W VLPXODWLRQ WLPH WKH YDOXH RI ZLUH D FKDQJHV WR GLVFRQQHFWLQJ WULUHJBOD DQG WULUHJBPH
IURPWKHLUGULYHUV7KHVHWULUHJQHWVHQWHUWKHFDSDFLWLYHVWDWHDQGVWRUHWKHYDOXH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
I
$WVLPXODWLRQWLPHWKHYDOXHRIZLUHEFKDQJHVWR
7KLVFKDQJHRIYDOXHLQZLUHEFRQQHFWVWULUHJBVPWRWULUHJBODWKHVHWULUHJQHWVKDYHGLIIHUHQWVL]HV
DQGVWRUHGGLIIHUHQWYDOXHV7KLVFRQQHFWLRQFDXVHVWKHVPDOOHUWULUHJQHWWRVWRUHWKHYDOXHRIWKHODUJHUWULUHJ
QHWDQGWULUHJBVPQRZVWRUHVDYDOXHRI
7KLV FKDQJH RI YDOXH LQ ZLUH E DOVR FRQQHFWV WULUHJBPH WR WULUHJBPH WKHVH WULUHJ QHWV KDYH WKH
VDPH VL]H DQG VWRUHG GLIIHUHQW YDOXHV 7KH FRQQHFWLRQ FDXVHV ERWK WULUHJBPH DQG WULUHJBPH WR
FKDQJHYDOXHWR[
,QDFDSDFLWLYHQHWZRUNFKDUJHVWUHQJWKVSURSDJDWHIURPDODUJHUWULUHJQHWWRDVPDOOHUWULUHJQHW)LJXUHVKRZVD
FDSDFLWLYHQHWZRUNDQGLWVVLPXODWLRQUHVXOWV
ZLUHE
ZLUHF
WUDQLIB
WUDQLIB
ZLUHD
WULUHJBOD
VLPXODWLRQ
WLPH
ZLUHD
VWURQJ
VWURQJ
ZLUHE ZLUHF
WULUHJBVP
WULUHJBOD
WULUHJBVP
VWURQJ
VWURQJ
ODUJH
ODUJH
VWURQJ
ODUJH
VPDOO
VWURQJ
ODUJH
ODUJH
VWURQJ
ODUJH
VPDOO
)LJXUH³6LPXODWLRQUHVXOWVRIFKDUJHVKDULQJ
,Q)LJXUHWKHFDSDFLWLYHVWUHQJWKRIWULUHJBODLVODUJHDQGWKHFDSDFLWLYHVWUHQJWKRIWULUHJBVPLVVPDOO
6LPXODWLRQUHSRUWVWKHIROORZLQJUHVXOWV
D
$WVLPXODWLRQWLPHWKHYDOXHVRIZLUHDZLUHEDQGZLUHF DUHDQGZLUHDGULYHVDVWURQJLQWR
WULUHJBODDQGWULUHJBVP
E
$WVLPXODWLRQWLPHWKHYDOXHRIZLUHEFKDQJHVWRGLVFRQQHFWLQJWULUHJBODDQGWULUHJBVPIURP
ZLUHD7KHWULUHJBODDQGWULUHJBVPQHWVHQWHUWKHFDSDFLWLYHVWDWH%RWKWULUHJQHWVVKDUHWKHODUJH
FKDUJHRIWULUHJBODEHFDXVHWKH\UHPDLQFRQQHFWHGWKURXJKWUDQLIB
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
F
$WVLPXODWLRQWLPHWKHYDOXHRIZLUHFFKDQJHVWRGLVFRQQHFWLQJWULUHJBVPIURPWULUHJBOD7KH
WULUHJBVPQRORQJHUVKDUHVODUJHFKDUJHRIWULUHJBODDQGQRZVWRUHVDVPDOOFKDUJH
G
$WVLPXODWLRQWLPHWKHYDOXHRIZLUHFFKDQJHVWRFRQQHFWLQJWKHWZRWULUHJQHWV7KHVHWULUHJQHWVQRZ
VKDUHWKHVDPHFKDUJH
H
$W VLPXODWLRQ WLPH WKH YDOXH RI ZLUH F FKDQJHV DJDLQ WR GLVFRQQHFWLQJ WULUHJBVP IURP
WULUHJBOD2QFHDJDLQWULUHJBVPQRORQJHUVKDUHVWKHODUJHFKDUJHRIWULUHJBODDQGQRZVWRUHVD
VPDOOFKDUJH
,GHDOFDSDFLWLYHVWDWHDQGFKDUJHGHFD\
$WULUHJQHWFDQUHWDLQLWVYDOXHLQGHÀQLWHO\RULWVFKDUJHFDQGHFD\RYHUWLPH7KHVLPXODWLRQWLPHRIFKDUJHGHFD\LV
VSHFLÀHGLQWKHGHOD\VSHFLÀFDWLRQRIWKHWULUHJQHW6HHIRUFKDUJHGHFD\H[SODQDWLRQ
7ULDQGWULQHWV
7KHWULDQGWULQHWVPRGHOQHWVZLWKUHVLVWLYHSXOOGRZQDQGUHVLVWLYHSXOOXSGHYLFHVRQWKHP:KHQQRGULYHUGULYHV
DWULQHWLWVYDOXHLV:KHQQRGULYHUGULYHVDWULQHWLWVYDOXHLV7KHVWUHQJWKRIWKLVYDOXHLVSXOO6HH6HFWLRQ
IRUDGHVFULSWLRQRIVWUHQJWKPRGHOLQJ
$WUXWKWDEOHIRUWULLVVKRZQLQ7DEOH$WUXWKWDEOHIRUWULLVVKRZQLQ7DEOH
7DEOH³7UXWKWDEOHIRUWULQHW
WUL
[
]
[
[
[
[
[
[
[
[
[
]
[
7DEOH³7UXWKWDEOHIRUWULQHW
WUL
[
]
[
[
[
[
[
[
[
[
[
]
[
6XSSO\QHWV
7KHVXSSO\DQGVXSSO\QHWVPD\EHXVHGWRPRGHOWKHSRZHUVXSSOLHVLQDFLUFXLW7KHVHQHWVVKDOOKDYHVXSSO\
VWUHQJWKV
0HPRULHV
$QDUUD\RIUHJLVWHUVFDQEHXVHGWRPRGHOUHDGRQO\PHPRULHV520VUDQGRPDFFHVVPHPRULHV5$0VDQGUHJ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LVWHUÀOHV(DFKUHJLVWHULQWKHDUUD\LVNQRZQDVDQHOHPHQWRUZRUGDQGLVDGGUHVVHGE\DVLQJOHDUUD\LQGH[7KHUH
VKDOOEHQRDUUD\VZLWKPXOWLSOHGLPHQVLRQV
0HPRULHV VKDOO EH GHFODUHG LQ UHJLVWHU GHFODUDWLRQ VWDWHPHQWV E\ VSHFLI\LQJ WKH HOHPHQW DGGUHVV UDQJH DIWHU WKH
GHFODUHGLGHQWLÀHU6HH7KHH[SUHVVLRQVWKDWVSHFLI\WKHLQGLFHVRIWKHDUUD\VKDOOEHFRQVWDQWH[SUHVVLRQV7KH
YDOXHRIWKHFRQVWDQWH[SUHVVLRQFDQEHDSRVLWLYHLQWHJHUDQHJDWLYHLQWHJHURU]HUR
2QHGHFODUDWLRQVWDWHPHQWFDQEHXVHGIRUGHFODULQJERWKUHJLVWHUVDQGPHPRULHV7KLVPDNHVLWFRQYHQLHQWWRGHFODUH
ERWKDPHPRU\DQGVRPHUHJLVWHUVWKDWZLOOKROGGDWDWREHUHDGIURPDQGZULWWHQWRWKHPHPRU\LQWKHVDPHGHFODUD
WLRQVWDWHPHQW
$QQELWUHJLVWHUFDQEHDVVLJQHGDYDOXHLQDVLQJOHDVVLJQPHQWEXWDFRPSOHWHPHPRU\FDQQRW7RDVVLJQDYDOXHWR
DPHPRU\ZRUGDQLQGH[VKDOOEHVSHFLÀHG7KHLQGH[FDQEHDQH[SUHVVLRQ7KLVRSWLRQSURYLGHVDPHFKDQLVPWR
UHIHUHQFHGLIIHUHQWPHPRU\ZRUGVGHSHQGLQJRQWKHYDOXHRIRWKHUUHJLVWHUVDQGQHWVLQWKHFLUFXLW)RUH[DPSOHD
SURJUDPFRXQWHUUHJLVWHUFRXOGEHXVHGWRLQGH[LQWRD5$0
([DPSOHV
([DPSOH³0HPRU\GHFODUDWLRQ
UHJ>@PHPD>@GHFODUHVDPHPRU\PHPDRIELW
UHJLVWHUV7KHLQGLFHVDUHWR
SDUDPHWHU
SDUDPHWHUVDUHUXQWLPHFRQVWDQWVVHH
ZRUGVL]H PHPVL]H 'HFODUHZRUGVRIELWPHPRU\SOXVWZRUHJV
UHJ >ZRUGVL]H@
ZULWHUHJ
HTXLYDOHQWWR>@
UHDGUHJ
PHP>PHPVL]H@HTXLYDOHQWWR>@
([DPSOH³$PHPRU\RIQELWUHJLVWHUVLVGLIIHUHQWIURPDQQELWYHFWRUUHJLVWHU
UHJ>Q@UHJD$QQELWUHJLVWHULVQRWWKHVDPH
UHJPHPD>Q@DVDPHPRU\RIQELWUHJLVWHUV
([DPSOH³$VVLJQPHQWWRPHPRU\ZRUGV
UHJD /HJDOV\QWD[
PHPD ,OOHJDOV\QWD[
PHPD>@ $VVLJQVWRWKHILUVWHOHPHQWRIPHPD
127(³,PSOHPHQWDWLRQVPD\OLPLWWKHPD[LPXPVL]HRIDUHJLVWHUDUUD\EXWWKH\ZLOODWOHDVWEH
,QWHJHUVUHDOVWLPHVDQGUHDOWLPHV
,QDGGLWLRQWRPRGHOLQJKDUGZDUHWKHUHDUHRWKHUXVHVIRUUHJLVWHUVLQDQ+'/PRGHO$OWKRXJKUHJYDULDEOHVFDQEH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
XVHGIRUJHQHUDOSXUSRVHVVXFKDVFRXQWLQJWKHQXPEHURIWLPHVDSDUWLFXODUQHWFKDQJHVYDOXHWKHLQWHJHUDQGWLPH
UHJLVWHUGDWDW\SHVDUHSURYLGHGIRUFRQYHQLHQFHDQGWRPDNHWKHGHVFULSWLRQPRUHVHOIGRFXPHQWLQJ
7KHV\QWD[IRUGHFODULQJLQWHJHUWLPHUHDODQGUHDOWLPHUHJLVWHUVLVJLYHQLQ6\QWD[IURP6\QWD[
LQWHJHUBGHFODUDWLRQ LQWHJHUOLVWBRIBUHJLVWHUBLGHQWLILHUV
WLPHBGHFODUDWLRQ WLPHOLVWBRIBUHJLVWHUBLGHQWLILHUV
UHDOBGHFODUDWLRQ UHDOOLVWBRIBUHDOBLGHQWLILHUV
UHDOWLPHBGHFODUDWLRQ UHDOWLPHOLVWBRIBUHDOBLGHQWLILHUV
OLVWBRIBUHJLVWHUBLGHQWLILHUV UHJLVWHUBQDPH^UHJLVWHUBQDPH`
UHJLVWHUBQDPH UHJLVWHUBLGHQWLILHU
_PHPRU\BLGHQWLILHU>XSSHUBOLPLWBFRQVWDQWBH[SUHVVLRQ
ORZHUBOLPLWBFRQVWDQWBH[SUHVVLRQ@
6\QWD[³6\QWD[IRULQWHJHUWLPHUHDODQGUHDOWLPHGHFODUDWLRQV
7KHV\QWD[IRUOLVWRIUHJLVWHUYDULDEOHVLVGHÀQHGLQ
$QLQWHJHULVDJHQHUDOSXUSRVHUHJLVWHUXVHGIRUPDQLSXODWLQJTXDQWLWLHVWKDWDUHQRWUHJDUGHGDVKDUGZDUHUHJLVWHUV
$WLPHUHJLVWHULVXVHGIRUVWRULQJDQGPDQLSXODWLQJVLPXODWLRQWLPHTXDQWLWLHVLQVLWXDWLRQVZKHUHWLPLQJFKHFNVDUH
UHTXLUHGDQGIRUGLDJQRVWLFVDQGGHEXJJLQJSXUSRVHV7KLVGDWDW\SHLVW\SLFDOO\XVHGLQFRQMXQFWLRQZLWKWKHWLPH
V\VWHPIXQFWLRQVHH6HFWLRQ
$UUD\VRILQWHJHUDQGWLPHUHJLVWHUVVKDOOEHGHFODUHGLQWKHVDPHPDQQHUDVDUUD\VRIUHJW\SHVHH
7KHLQWHJHUDQGWLPHUHJLVWHUVVKDOOEHDVVLJQHGYDOXHVLQWKHVDPHPDQQHUDVUHJ3URFHGXUDODVVLJQPHQWVVKDOOEH
XVHGWRWULJJHUWKHLUYDOXHFKDQJHV
7KH WLPH UHJLVWHUV VKDOO EHKDYH WKH VDPH DV D UHJLVWHU RI DW OHDVW ELWV 7KH\ VKDOO EH XQVLJQHG TXDQWLWLHV DQG
XQVLJQHGDULWKPHWLFVKDOOEHSHUIRUPHGRQWKHP,QFRQWUDVWLQWHJHUUHJLVWHUVVKDOOEHWUHDWHGDVVLJQHGTXDQWLWLHV
$ULWKPHWLFRSHUDWLRQVSHUIRUPHGRQLQWHJHUUHJLVWHUVVKDOOSURGXFH·VFRPSOHPHQWUHVXOWV
7KH9HULORJ+'/VXSSRUWVUHDOQXPEHUFRQVWDQWVDQGUHDOUHJLVWHUGDWDW\SHVLQDGGLWLRQWRLQWHJHUDQGWLPHUHJLVWHU
GDWDW\SHV([FHSWIRUWKHIROORZLQJUHVWULFWLRQVUHJLVWHUVGHFODUHGDVUHDOFDQEHXVHGLQWKHVDPHSODFHVWKDWLQWHJHUV
DQGWLPHUHJLVWHUVDUHXVHG
³ 1RWDOO9HULORJ+'/RSHUDWRUVFDQEHXVHGZLWKUHDOQXPEHUYDOXHV6HH7DEOHIRUOLVWVRIYDOLGDQGLQYDOLG
RSHUDWRUVIRUUHDOQXPEHUVDQGUHDOUHJLVWHUV
³ 5HDOUHJLVWHUVVKDOOQRWXVHUDQJHLQWKHGHFODUDWLRQ
³ 5HDOUHJLVWHUVVKDOOGHIDXOWWRDQLQLWLDOYDOXHRI]HUR
7KHUHDOWLPHGHFODUDWLRQVVKDOOEHWUHDWHGV\QRQ\PRXVO\ZLWKUHDOGHFODUDWLRQVDQGFDQEHXVHGLQWHUFKDQJHDEO\
([DPSOHV
LQWHJHUD>@
WLPHFKQJBKLVW>@
UHDOIORDW
UHDOWLPHUWLPH
DQDUUD\RILQWHJHUYDOXHV
DQDUUD\RIWLPHYDOXHV
DUHJLVWHUWRVWRUHUHDOYDOXH
DUHJLVWHUWRVWRUHWLPHDVDUHDOYDOXH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
127(³,PSOHPHQWDWLRQVPD\OLPLWWKHPD[LPXPVL]HRIDQLQWHJHUYDULDEOHEXWWKH\VKDOODWOHDVWEHELWV
2SHUDWRUVDQGUHDOQXPEHUV
7KHUHVXOWRIXVLQJORJLFDORUUHODWLRQDORSHUDWRUVRQUHDOQXPEHUVDQGUHDOUHJLVWHUVLVDVLQJOHELWVFDODUYDOXH1RWDOO
9HULORJ+'/RSHUDWRUVFDQEHXVHGZLWKH[SUHVVLRQVLQYROYLQJUHDOQXPEHUVDQGUHDOUHJLVWHUV7DEOHOLVWVWKH
YDOLGRSHUDWRUVIRUXVHZLWKUHDOQXPEHUVDQGUHDOUHJLVWHUV5HDOQXPEHUFRQVWDQWVDQGUHDOUHJLVWHUVDUHDOVRSURKLE
LWHGLQWKHIROORZLQJFDVHV
³
³
³
³
(GJHGHVFULSWRUVSRVHGJHQHJHGJHDSSOLHGWRUHDOUHJLVWHUV
%LWVHOHFWRUSDUWVHOHFWUHIHUHQFHVRIYDULDEOHVGHFODUHGDVUHDO
5HDOQXPEHULQGH[H[SUHVVLRQVRIELWVHOHFWRUSDUWVHOHFWUHIHUHQFHVRIYHFWRUV
'HFODUDWLRQRIPHPRULHVDUUD\VRIUHDOUHJLVWHUV
&RQYHUVLRQ
5HDOQXPEHUVVKDOOEHFRQYHUWHGWRLQWHJHUVE\URXQGLQJWKHUHDOQXPEHUWRWKHQHDUHVWLQWHJHUUDWKHUWKDQE\WUXQFDW
LQJLW,PSOLFLWFRQYHUVLRQVKDOOWDNHSODFHZKHQDUHDOQXPEHULVDVVLJQHGWRDQLQWHJHU7KHWLHVVKDOOEHURXQGHG
DZD\IURP]HUR
,PSOLFLWFRQYHUVLRQVKDOOWDNHSODFHZKHQDQHWRUUHJLVWHULVDVVLJQHGWRDUHDO,QGLYLGXDOELWVWKDWDUH[RU]LQWKHQHW
RUWKHUHJLVWHUVKDOOEHWUHDWHGDV]HURXSRQFRQYHUVLRQ
6HH6HFWLRQIRUDGLVFXVVLRQRIV\VWHPWDVNVWKDWSHUIRUPH[SOLFLWFRQYHUVLRQ
3DUDPHWHUV
9HULORJ+'/SDUDPHWHUVGRQRWEHORQJWRHLWKHUWKHUHJLVWHURUWKHQHWJURXS3DUDPHWHUVDUHQRWYDULDEOHVWKH\DUH
FRQVWDQWV
7KHV\QWD[IRUSDUDPHWHUGHFODUDWLRQVLVJLYHQLQ6\QWD[
SDUDPHWHUBGHFODUDWLRQ SDUDPHWHUOLVWBRIBSDUDPBDVVLJQPHQWV
OLVWBRIBSDUDPBDVVLJQPHQWV SDUDPBDVVLJQPHQW^SDUDPBDVVLJQPHQW`
SDUDPBDVVLJQPHQW SDUDPHWHUBLGHQWLILHU FRQVWDQWBH[SUHVVLRQ
6\QWD[³6\QWD[IRUSDUDPHWHUGHFODUDWLRQ
7KH OLVW RI SDUDP DVVLJQPHQWV VKDOO EH D FRPPDVHSDUDWHG OLVW RI DVVLJQPHQWV ZKHUH WKH ULJKWKDQG VLGH RI WKH
DVVLJQPHQWVKDOOEHDFRQVWDQWH[SUHVVLRQWKDWLVDQH[SUHVVLRQFRQWDLQLQJRQO\FRQVWDQWQXPEHUVDQGSUHYLRXVO\
GHÀQHGSDUDPHWHUV
3DUDPHWHUVUHSUHVHQWFRQVWDQWVKHQFHLWLVLOOHJDOWRPRGLI\WKHLUYDOXHDWUXQWLPH+RZHYHUSDUDPHWHUVFDQEHPRG
LÀHGDWFRPSLODWLRQWLPHWRKDYHYDOXHVWKDWDUHGLIIHUHQWIURPWKRVHVSHFLÀHGLQWKHGHFODUDWLRQDVVLJQPHQW7KLV
DOORZVFXVWRPL]DWLRQRIPRGXOHLQVWDQFHV$SDUDPHWHUFDQEHPRGLÀHGZLWKWKHGHISDUDPVWDWHPHQWRULQWKHPRG
XOHLQVWDQFHVWDWHPHQW7\SLFDOXVHVRISDUDPHWHUVDUHWRVSHFLI\GHOD\VDQGZLGWKRIYDULDEOHV6HH6HFWLRQIRU
GHWDLOVRQSDUDPHWHUYDOXHDVVLJQPHQW
([DPSOHV
SDUDPHWHU
SDUDPHWHU
6HFWLRQ
PVE H I GHILQHVPVEDVDFRQVWDQWYDOXH
GHILQHVWZRFRQVWDQWQXPEHUV
,(((
6WG
SDUDPHWHU
SDUDPHWHU
SDUDPHWHU
U GHFODUHVUDVDUHDOSDUDPHWHU
E\WHBVL]H E\WHBPDVN E\WHBVL]H
DYHUDJHBGHOD\ UI
1DPHVSDFHV
,Q9HULORJ+'/WKHUHDUHVL[QDPHVSDFHVWZRDUHJOREDODQGIRXUDUHORFDO7KHJOREDOQDPHVSDFHVDUHGHÀQLWLRQV
DQGWH[WPDFURV7KHGHÀQLWLRQVQDPHVSDFHXQLÀHVDOOWKHPRGXOHVHHPDFURPRGXOHVHHDQGSULPL
WLYHVHHGHÀQLWLRQV7KDWLVDPRGXOHDQGDPDFURPRGXOHRUDSULPLWLYHFDQQRWKDYHWKHVDPHQDPH
7KHWH[WPDFURQDPHVSDFHLVJOREDO6LQFHWH[WPDFURQDPHVDUHLQWURGXFHGDQGXVHGZLWKDOHDGLQJCFKDUDFWHUWKH\
UHPDLQXQDPELJXRXVZLWKDQ\RWKHUQDPHVSDFHVHH7KHWH[WPDFURQDPHVDUHGHÀQHGLQWKHOLQHDURUGHURI
DSSHDUDQFHLQWKHVHWRILQSXWÀOHVWKDWPDNHXSWKHGHVFULSWLRQRIWKHGHVLJQXQLW6XEVHTXHQWGHÀQLWLRQVRIWKHVDPH
QDPHRYHUULGHWKHSUHYLRXVGHÀQLWLRQVIRUWKHEDODQFHRIWKHLQSXWÀOHV
7KHUHDUHIRXUORFDOQDPHVSDFHVEORFNPRGXOHSRUWDQGVSHFLI\EORFN
7KHEORFNQDPHVSDFHLVLQWURGXFHGE\WKHQDPHGEORFNVHHIXQFWLRQVHHDQGWDVNVHHFRQVWUXFWV
,WXQLÀHVWKHGHÀQLWLRQVRIWKHQDPHGEORFNVIXQFWLRQVWDVNVDQGWKHUHJLVWHUW\SHRIGHFODUDWLRQVHH7KHUHJ
LVWHUW\SHRIGHFODUDWLRQLQFOXGHVWKHUHJLQWHJHUWLPHUHDOUHDOWLPHHYHQWDQGSDUDPHWHUGHFODUDWLRQV
7KHPRGXOHQDPHVSDFHLVLQWURGXFHGE\WKHPRGXOHPDFURPRGXOHDQGSULPLWLYHFRQVWUXFWV,WXQLÀHVWKHGHÀQL
WLRQRIIXQFWLRQVWDVNVQDPHGEORFNVLQVWDQFHQDPHVQHWW\SHRIGHFODUDWLRQDQGUHJLVWHUW\SHRIGHFODUDWLRQ7KH
QHWW\SHRIGHFODUDWLRQLQFOXGHVZLUHZRUZDQGWULWULRUWULDQGWULWULWULUHJVXSSO\DQGVXSSO\VHH
7KHSRUWQDPHVSDFHLVLQWURGXFHGE\WKHPRGXOHPDFURPRGXOHSULPLWLYHIXQFWLRQDQGWDVNFRQVWUXFWV,WSUR
YLGHVDPHDQVRIVWUXFWXUDOO\GHÀQLQJFRQQHFWLRQVEHWZHHQWZRREMHFWVWKDWDUHLQWZRGLIIHUHQWQDPHVSDFHV7KH
FRQQHFWLRQFDQEHXQLGLUHFWLRQDOHLWKHULQSXWRURXWSXWRUELGLUHFWLRQDOLQRXW7KHSRUWQDPHVSDFHRYHUODSVWKH
PRGXOHDQGWKHEORFNQDPHVSDFHV(VVHQWLDOO\WKHSRUWQDPHVSDFHVSHFLÀHVWKHW\SHRIFRQQHFWLRQEHWZHHQQDPHV
LQ GLIIHUHQW QDPH VSDFHV7KH SRUW W\SH RI GHFODUDWLRQV LQFOXGH LQSXW RXWSXW DQG LQRXW VHH $ SRUW QDPH
LQWURGXFHGLQWKHSRUWQDPHVSDFHPD\EHUHLQWURGXFHGLQWKHPRGXOHQDPHVSDFHE\GHFODULQJDUHJLVWHURUDZLUH
ZLWKWKHVDPHQDPHDVWKHSRUWQDPH
7KHVSHFLI\EORFNQDPHVSDFHLVLQWURGXFHGE\WKHVSHFLI\FRQVWUXFWVHH$VSHFSDUDPQDPHFDQEHGHÀQHG
DQGXVHGRQO\LQWKHVSHFLI\EORFNQDPHVSDFH$Q\RWKHUW\SHRIQDPHFDQQRWEHGHÀQHGLQWKLVQDPHVSDFH
6HFWLRQ
,(((
6WG
6HFWLRQ
([SUHVVLRQV
7KLVVHFWLRQGHVFULEHVWKHRSHUDWRUVDQGRSHUDQGVDYDLODEOHLQWKH9HULORJ+'/DQGKRZWRXVHWKHPWRIRUPH[SUHV
VLRQV
$QH[SUHVVLRQLVDFRQVWUXFWWKDWFRPELQHVRSHUDQGVZLWKRSHUDWRUVWRSURGXFHDUHVXOWWKDWLVDIXQFWLRQRIWKHYDOXHV
RIWKHRSHUDQGVDQGWKHVHPDQWLFPHDQLQJRIWKHRSHUDWRU$Q\OHJDORSHUDQGVXFKDVDQHWELWVHOHFWZLWKRXWDQ\
RSHUDWRULVFRQVLGHUHGDQH[SUHVVLRQ:KHUHYHUDYDOXHLVQHHGHGLQD9HULORJ+'/VWDWHPHQWDQH[SUHVVLRQFDQEH
XVHG
6RPHVWDWHPHQWFRQVWUXFWVUHTXLUHDQH[SUHVVLRQWREHD FRQVWDQWH[SUHVVLRQ7KHRSHUDQGVRIDFRQVWDQWH[SUHVVLRQ
FRQVLVWRIFRQVWDQWQXPEHUVSDUDPHWHUQDPHVFRQVWDQWELWVHOHFWVRISDUDPHWHUVDQGFRQVWDQWSDUWVHOHFWVRISDUDP
HWHUVRQO\EXWWKH\FDQXVHDQ\RIWKHRSHUDWRUVGHÀQHGLQ7DEOH
$VFDODUH[SUHVVLRQLVDQH[SUHVVLRQWKDWHYDOXDWHVWRDVFDODUVLQJOHELWUHVXOW,IWKHH[SUHVVLRQHYDOXDWHVWRDYHFWRU
PXOWLELWUHVXOWWKHQWKHOHDVWVLJQLÀFDQWELWRIWKHUHVXOWLVXVHGDVWKHVFDODUUHVXOW
7KHGDWDW\SHV UHJ LQWHJHU WLPH UHDODQG UHDOWLPHDUHDOOUHJLVWHUGDWDW\SHV'HVFULSWLRQVSHUWDLQLQJWRUHJLVWHU
XVDJHDSSO\WRDOORIWKHVHGDWDW\SHV
$QRSHUDQGFDQEHRQHRIWKHIROORZLQJ
³
³
³
³
³
³
³
³
³
&RQVWDQWQXPEHULQFOXGLQJUHDO
1HW
5HJLVWHUYDULDEOHVRIW\SHUHJLQWHJHUWLPHUHDODQGUHDOWLPH
1HWELWVHOHFW
%LWVHOHFWRIW\SHUHJLQWHJHUDQGWLPH
1HWSDUWVHOHFW
3DUWVHOHFWRIW\SHUHJLQWHJHUDQGWLPH
0HPRU\ZRUG
$FDOOWRDXVHUGHÀQHGIXQFWLRQRUV\VWHPGHÀQHGIXQFWLRQWKDWUHWXUQVDQ\RIWKHDERYH
2SHUDWRUV
7KHV\PEROVIRUWKH9HULORJ+'/RSHUDWRUVDUHVLPLODUWRWKRVHLQWKH&SURJUDPPLQJODQJXDJH7DEOHOLVWVWKHVH
RSHUDWRUV
7DEOH³2SHUDWRUVLQWKH9HULORJ+'/
6HFWLRQ
^`^^``
&RQFDWHQDWLRQUHSOLFDWLRQ
$ULWKPHWLF
0RGXOXV
!! 5HODWLRQDO
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³2SHUDWRUVLQWKH9HULORJ+'/FRQWLQXHG
/RJLFDOQHJDWLRQ
/RJLFDODQG
__
/RJLFDORU
/RJLFDOHTXDOLW\
/RJLFDOLQHTXDOLW\
&DVHHTXDOLW\
&DVHLQHTXDOLW\
a
%LWZLVHQHJDWLRQ
%LWZLVHDQG
_
%LWZLVHLQFOXVLYHRU
A
%LWZLVHH[FOXVLYHRU
AaRUaA
%LWZLVHHTXLYDOHQFH
5HGXFWLRQDQG
a
5HGXFWLRQQDQG
_
5HGXFWLRQRU
a_
5HGXFWLRQQRU
A
5HGXFWLRQ[RU
aARUAa
5HGXFWLRQ[QRU
/HIWVKLIW
!!
5LJKWVKLIW
"
&RQGLWLRQDO
RU
(YHQWRU
2SHUDWRUVZLWKUHDORSHUDQGV
7KHRSHUDWRUVVKRZQLQ7DEOHVKDOOEHOHJDOZKHQDSSOLHGWRUHDORSHUDQGV$OORWKHURSHUDWRUVVKDOOEHFRQVLGHUHG
LOOHJDOZKHQXVHGZLWKUHDORSHUDQGV
7DEOH³/HJDORSHUDWRUVIRUXVHLQUHDOH[SUHVVLRQV
XQDU\XQDU\
8QDU\RSHUDWRUV
$ULWKPHWLF
!! 5HODWLRQDO
__
/RJLFDO
/RJLFDOHTXDOLW\
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³/HJDORSHUDWRUVIRUXVHLQUHDOH[SUHVVLRQVFRQWLQXHG
"
&RQGLWLRQDO
RU
(YHQWRU
7KHUHVXOWRIXVLQJORJLFDORUUHODWLRQDORSHUDWRUVRQUHDOQXPEHUVLVDVLQJOHELWVFDODUYDOXH
7DEOHOLVWVRSHUDWRUVWKDWVKDOOQRWEHXVHGWRRSHUDWHRQUHDOQXPEHUV
7DEOH³2SHUDWRUVQRWDOORZHGIRUUHDOH[SUHVVLRQV
^`^^``
&RQFDWHQDWHUHSOLFDWH
0RGXOXV
&DVHHTXDOLW\
a_
AAaaA
%LWZLVH
AAaaA
a_a_
5HGXFWLRQ
!!
6KLIW
6HHIRUPRUHLQIRUPDWLRQRQXVHRIUHDOQXPEHUV
%LQDU\RSHUDWRUSUHFHGHQFH
7KHSUHFHGHQFHRUGHURIELQDU\RSHUDWRUVDQGWKHFRQGLWLRQDORSHUDWRU"LVVKRZQLQ7DEOH7KH9HULORJ+'/
KDVWZRHTXDOLW\RSHUDWRUV7KH\DUHGLVFXVVHGLQ
7DEOH³3UHFHGHQFHUXOHVIRURSHUDWRUV
aXQDU\
+LJKHVWSUHFHGHQFH
ELQDU\
!!
!!
a
AAaaA
_a_
__
"FRQGLWLRQDORSHUDWRU
/RZHVWSUHFHGHQFH
2SHUDWRUV VKRZQ RQ WKH VDPH URZ LQ 7DEOH VKDOO KDYH WKH VDPH SUHFHGHQFH 5RZV DUH DUUDQJHG LQ RUGHU RI
GHFUHDVLQJSUHFHGHQFHIRUWKHRSHUDWRUV)RUH[DPSOHDQGDOOKDYHWKHVDPHSUHFHGHQFHZKLFKLVKLJKHUWKDQ
WKDWRIWKHELQDU\DQGRSHUDWRUV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$OORSHUDWRUVVKDOODVVRFLDWHOHIWWRULJKWZLWKWKHH[FHSWLRQRIWKHFRQGLWLRQDORSHUDWRUZKLFKVKDOODVVRFLDWHULJKWWR
OHIW$VVRFLDWLYLW\UHIHUVWRWKHRUGHULQZKLFKWKHRSHUDWRUVKDYLQJWKHVDPHSUHFHGHQFHDUHHYDOXDWHG7KXVLQWKH
IROORZLQJH[DPSOH%LVDGGHGWR$DQGWKHQ&LVVXEWUDFWHGIURPWKHUHVXOWRI$%
$%&
:KHQ RSHUDWRUV GLIIHU LQ SUHFHGHQFH WKH RSHUDWRUV ZLWK KLJKHU SUHFHGHQFH VKDOO DVVRFLDWH ÀUVW ,Q WKH IROORZLQJ
H[DPSOH%LVGLYLGHGE\&GLYLVLRQKDVKLJKHUSUHFHGHQFHWKDQDGGLWLRQDQGWKHQWKHUHVXOWLVDGGHGWR$
$%&
3DUHQWKHVHVFDQEHXVHGWRFKDQJHWKHRSHUDWRUSUHFHGHQFH
$%&
QRWWKHVDPHDV$%&
8VLQJLQWHJHUQXPEHUVLQH[SUHVVLRQV
,QWHJHUQXPEHUVFDQEHXVHGDVRSHUDQGVLQH[SUHVVLRQV$QLQWHJHUQXPEHUFDQEHH[SUHVVHGDV
³ $QXQVL]HGXQEDVHGLQWHJHUHJ
³ $QXQVL]HGEDVHGLQWHJHUHJ·G
³ $VL]HGEDVHGLQWHJHUHJ·G
$QHJDWLYHYDOXHIRUDQLQWHJHUZLWKQREDVHVSHFLÀHUVKDOOEHLQWHUSUHWHGGLIIHUHQWO\WKDQIRUDQLQWHJHUZLWKDEDVH
VSHFLÀHU$QLQWHJHUZLWKQREDVHVSHFLÀHUVKDOOEHLQWHUSUHWHGDVDVLJQHGYDOXHLQ·VFRPSOHPHQWIRUP$QLQWHJHU
ZLWKDEDVHVSHFLÀHUVKDOOEHLQWHUSUHWHGDVDQXQVLJQHGYDOXH
([DPSOH
7KLVH[DPSOHVKRZVWZRZD\VWRZULWHWKHH[SUHVVLRQ´PLQXVGLYLGHGE\µ1RWHWKDWDQG·GERWKHYDO
XDWHWRWKHVDPH·VFRPSOHPHQWELWSDWWHUQEXWLQDQH[SUHVVLRQWKH·GORVHVLWVLGHQWLW\DVDVLJQHGQHJDWLYH
QXPEHU
LQWHJHU,QW$
,QW$ 7KHUHVXOWLV
,QW$ ·G
7KHUHVXOWLV
([SUHVVLRQHYDOXDWLRQRUGHU
7KHRSHUDWRUVVKDOOIROORZWKHDVVRFLDWLYLW\UXOHVZKLOHHYDOXDWLQJDQH[SUHVVLRQDVGHVFULEHGLQ+RZHYHULIWKH
ÀQDOUHVXOWRIDQH[SUHVVLRQFDQEHGHWHUPLQHGHDUO\WKHHQWLUHH[SUHVVLRQQHHGQRWEHHYDOXDWHG7KLVLVFDOOHGVKRUW
FLUFXLWLQJDQH[SUHVVLRQHYDOXDWLRQ
([DPSOH
UHJUHJ$UHJ%UHJ&UHVXOW
UHVXOW UHJ$UHJ%_UHJ&
,IUHJ$LVNQRZQWREH]HURWKHUHVXOWRIWKHH[SUHVVLRQFDQEHGHWHUPLQHGDV]HURZLWKRXWHYDOXDWLQJWKHVXEH[SUHV
VLRQUHJ%_UHJ&
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
$ULWKPHWLFRSHUDWRUV
7KHELQDU\DULWKPHWLFRSHUDWRUVDUHJLYHQLQ7DEOH
7DEOH³$ULWKPHWLFRSHUDWRUVGHÀQHG
DE
DSOXVE
DE
DPLQXVE
DE
DPXOWLSO\E\E
DE
DGLYLGHE\E
DE
DPRGXORE
7KHLQWHJHUGLYLVLRQVKDOOWUXQFDWHDQ\IUDFWLRQDOSDUWWRZDUG]HUR7KHPRGXOXVRSHUDWRUIRUH[DPSOH\]JLYHV
WKHUHPDLQGHUZKHQWKHÀUVWRSHUDQGLVGLYLGHGE\WKHVHFRQGDQGWKXVLV]HURZKHQ]GLYLGHV\H[DFWO\7KHUHVXOWRI
DPRGXOXVRSHUDWLRQVKDOOWDNHWKHVLJQRIWKHÀUVWRSHUDQG
7KH XQDU\ DULWKPHWLF RSHUDWRUV VKDOO WDNH SUHFHGHQFH RYHU WKH ELQDU\ RSHUDWRUV 7KH XQDU\ RSHUDWRUV DUH JLYHQ LQ
7DEOH
7DEOH³8QDU\RSHUDWRUVGHÀQHG
P
8QDU\SOXVPVDPHDVP
P
8QDU\PLQXVP
)RUWKHDULWKPHWLFRSHUDWRUVLIDQ\RSHUDQGELWYDOXHLVWKHXQNQRZQYDOXH[RUWKHKLJKLPSHGDQFHYDOXH]WKHQWKH
HQWLUHUHVXOWYDOXHVKDOOEH[
([DPSOH
7DEOHJLYHVH[DPSOHVRIPRGXOXVRSHUDWLRQV
7DEOH³([DPSOHVRIPRGXOXVRSHUDWLRQV
0RGXOXVH[SUHVVLRQ
5HVXOW
&RPPHQWV
\LHOGVDUHPDLQGHURI
\LHOGVDUHPDLQGHURI
\LHOGVQRUHPDLQGHU
7KHUHVXOWWDNHVWKHVLJQRIWKHILUVWRSHUDQG
7KHUHVXOWWDNHVWKHVLJQRIWKHILUVWRSHUDQG
·G
·GLVVHHQDVDODUJHSRVLWLYHQXPEHUWKDWOHDYHVD
UHPDLQGHURIZKHQGLYLGHGE\
$ULWKPHWLFH[SUHVVLRQVZLWKUHJLVWHUVDQGLQWHJHUV
$QDULWKPHWLFRSHUDWLRQRQDUHJW\SHUHJLVWHUVKDOOEHWUHDWHGGLIIHUHQWO\WKDQDQDULWKPHWLFRSHUDWLRQRQDQLQWHJHU
GDWDW\SH$UHJGDWDW\SHVKDOOEHWUHDWHGDVDQ XQVLJQHGYDOXHDQGDQLQWHJHUGDWDW\SHVKDOOEHWUHDWHGDVD VLJQHG
YDOXH7KXVLIDVL]HGFRQVWDQWZLWKDQHJDWLYHYDOXHLVVWRUHGLQDUHJW\SHUHJLVWHUDSRVLWLYHFRQVWDQWZKLFKLVD·V
FRPSOHPHQWRIWKHVL]HGFRQVWDQWVKDOOEHWKHYDOXHVWRUHGLQWKHUHJW\SHUHJLVWHU:KHQWKLVUHJLVWHULVXVHGLQDQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DULWKPHWLFH[SUHVVLRQWKHSRVLWLYHFRQVWDQWVKDOOEHXVHGDVWKHYDOXHRIWKHUHJLVWHU,QFRQWUDVWLIDVL]HGFRQVWDQW
ZLWKDQHJDWLYHYDOXHLVVWRUHGLQDQLQWHJHUW\SHUHJLVWHUDQGXVHGLQDQDULWKPHWLFH[SUHVVLRQWKHH[SUHVVLRQVKDOO
HYDOXDWHXVLQJVLJQHGDULWKPHWLF
7DEOHOLVWVKRZDULWKPHWLFRSHUDWRUVLQWHUSUHWHDFKGDWDW\SH
7DEOH³'DWDW\SHLQWHUSUHWDWLRQE\DULWKPHWLFRSHUDWRUV
'DWDW\SH
,QWHUSUHWDWLRQ
QHW
8QVLJQHG
UHJ
8QVLJQHG
LQWHJHU
6LJQHG·VFRPSOHPHQW
WLPH
8QVLJQHG
UHDOUHDOWLPH
6LJQHGÁRDWLQJSRLQW
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVYDULRXVZD\VWRGLYLGH ´PLQXVWZHOYHE\WKUHHµ³XVLQJLQWHJHUDQG UHJGDWDW\SHVLQ
H[SUHVVLRQV
LQWHJHULQW$
UHJ>@UHJ$
LQW$ ·G
UHJ$ LQW$
H[SUHVVLRQUHVXOWLV
LQW$LVDQLQWHJHUGDWDW\SHUHJ$LV
UHJ$ ·G
LQW$ UHJ$
UHJ$LV
H[SUHVVLRQUHVXOWLV
UHJ$LVDUHJGDWDW\SH
LQW$ ·GH[SUHVVLRQUHVXOWLV
·GLVHIIHFWLYHO\DELWUHJGDWDW\SH
UHJ$ H[SUHVVLRQUHVXOWLVLVHIIHFWLYHO\
DQLQWHJHUGDWDW\SHUHJ$LV
5HODWLRQDORSHUDWRUV
7DEOHOLVWVDQGGHÀQHVWKHUHODWLRQDORSHUDWRUV
7DEOH³'HÀQLWLRQVRIWKHUHODWLRQDORSHUDWRUV
DE
DOHVVWKDQE
D!E
DJUHDWHUWKDQE
D E
DOHVVWKDQRUHTXDOWRE
D! E
DJUHDWHUWKDQRUHTXDOWRE
$QH[SUHVVLRQXVLQJWKHVH UHODWLRQDORSHUDWRUVVKDOO\LHOGWKHVFDODUYDOXH LIWKHVSHFLÀHGUHODWLRQLV IDOVHRUWKH
YDOXH LILWLV WUXH,IGXHWRXQNQRZQRUKLJKLPSHGDQFHELWVLQWKHRSHUDQGVWKHUHODWLRQLV DPELJXRXVWKHQWKH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
UHVXOWVKDOOEHDELWXQNQRZQYDOXH[
:KHQWZRRSHUDQGVRIXQHTXDOELWOHQJWKVDUHXVHGWKHVPDOOHURSHUDQGVKDOOEH]HURÀOOHGRQWKHPRVWVLJQLÀFDQWELW
VLGHWRH[WHQGWRWKHVL]HRIWKHODUJHURSHUDQG
$OOWKHUHODWLRQDORSHUDWRUVVKDOOKDYHWKHVDPHSUHFHGHQFH5HODWLRQDORSHUDWRUVVKDOOKDYHORZHUSUHFHGHQFHWKDQ
DULWKPHWLFRSHUDWRUV
([DPSOHV
7KHIROORZLQJH[DPSOHVLOOXVWUDWHWKHLPSOLFDWLRQVRIWKLVSUHFHGHQFHUXOH
DIRR
DIRR
IRRD
IRRD
WKLVH[SUHVVLRQLVWKHVDPHDV
WKLVH[SUHVVLRQEXW
WKLVRQHLVQRWWKHVDPHDV
WKLVH[SUHVVLRQ
:KHQIRRDHYDOXDWHVWKHUHODWLRQDOH[SUHVVLRQHYDOXDWHVÀUVWDQGWKHQHLWKHU]HURRURQHLVVXEWUDFWHG
IURPIRR:KHQIRRDHYDOXDWHVWKHYDOXHRIIRRRSHUDQGLVUHGXFHGE\RQHDQGWKHQFRPSDUHGZLWKD
(TXDOLW\RSHUDWRUV
7KHHTXDOLW\RSHUDWRUVVKDOOUDQNORZHULQSUHFHGHQFHWKDQWKHUHODWLRQDORSHUDWRUV7DEOHOLVWVDQGGHÀQHVWKH
HTXDOLW\RSHUDWRUV
7DEOH³'HÀQLWLRQVRIWKHHTXDOLW\RSHUDWRUV
D
E
DHTXDOWRELQFOXGLQJ[DQG]
D
E
DQRWHTXDOWRELQFOXGLQJ[DQG]
D
E
DHTXDOWREUHVXOWPD\EHXQNQRZQ
D E
DQRWHTXDOWREUHVXOWPD\EHXQNQRZQ
$OOIRXUHTXDOLW\RSHUDWRUVVKDOOKDYHWKHVDPHSUHFHGHQFH7KHVHIRXURSHUDWRUVFRPSDUHRSHUDQGVELWIRUELWZLWK
]HURÀOOLQJLIWKHWZRRSHUDQGVDUHRIXQHTXDOELWOHQJWK$VZLWKWKHUHODWLRQDORSHUDWRUVWKHUHVXOWVKDOOEHLIFRP
SDULVRQIDLOVLILWVXFFHHGV
)RUWKHORJLFDOHTXDOLW\DQGORJLFDOLQHTXDOLW\RSHUDWRUV
UHVXOWVKDOOEHWKHXQNQRZQYDOXH[
DQG LIHLWKHURSHUDQGFRQWDLQVDQ[RUD]WKHQWKH
)RUWKHFDVHHTXDOLW\DQGFDVHLQHTXDOLW\RSHUDWRUV
DQG WKHFRPSDULVRQVKDOOEHGRQHMXVWDVLWLVLQWKH
SURFHGXUDOFDVHVWDWHPHQWVHH%LWVWKDWDUH[RU]VKDOOEHLQFOXGHGLQWKHFRPSDULVRQDQGVKDOOPDWFKIRUWKH
UHVXOWWREHFRQVLGHUHGHTXDO7KHUHVXOWRIWKHVHRSHUDWRUVVKDOODOZD\VEHDNQRZQYDOXHHLWKHURU
/RJLFDORSHUDWRUV
7KHRSHUDWRUVORJLFDODQGDQGORJLFDORU__DUHORJLFDOFRQQHFWLYHV7KHUHVXOWRIWKHHYDOXDWLRQRIDORJLFDO
FRPSDULVRQVKDOOEHGHÀQHGDVWUXHGHÀQHGDVIDOVHRULIWKHUHVXOWLVDPELJXRXVWKHXQNQRZQYDOXH[
7KHSUHFHGHQFHRILVJUHDWHUWKDQWKDWRI__DQGERWKDUHORZHUWKDQUHODWLRQDODQGHTXDOLW\RSHUDWRUV
$WKLUGORJLFDORSHUDWRULVWKHXQDU\ORJLFDOQHJDWLRQRSHUDWRU7KHQHJDWLRQRSHUDWRUFRQYHUWVDQRQ]HURRUWUXH
RSHUDQGLQWRDQGD]HURRUIDOVHRSHUDQGLQWR$QDPELJXRXVWUXWKYDOXHUHPDLQVDV[
([DPSOHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH³,IUHJLVWHUDOSKDKROGVWKHLQWHJHUYDOXHDQGEHWDKROGVWKHYDOXH]HURWKHQWKHIROORZLQJH[DP
SOHVSHUIRUPDVGHVFULEHG
UHJ$ DOSKDEHWD
UHJ% DOSKD__EHWD
UHJ$LVVHWWR
UHJ%LVVHWWR
([DPSOH³7KHIROORZLQJH[SUHVVLRQSHUIRUPVDORJLFDODQGRIWKUHHVXEH[SUHVVLRQVZLWKRXWQHHGLQJDQ\SDUHQWKH
VHV
DVL]HE FLQGH[ ODVWRQH
+RZHYHULWLVUHFRPPHQGHGIRUUHDGDELOLW\SXUSRVHVWKDWSDUHQWKHVHVEHXVHGWRVKRZYHU\FOHDUO\WKHSUHFHGHQFH
LQWHQGHGDVLQWKHIROORZLQJUHZULWHRIWKLVH[DPSOH
DVL]HE FLQGH[ ODVWRQH
([DPSOH³$FRPPRQXVHRILVLQFRQVWUXFWLRQVOLNHWKHIROORZLQJ
LILQZRUG
,QVRPHFDVHVWKHSUHFHGLQJFRQVWUXFWPDNHVPRUHVHQVHWRVRPHRQHUHDGLQJWKHFRGHWKDQWKLVHTXLYDOHQWFRQVWUXFW
LILQZRUG
%LWZLVHRSHUDWRUV
7KHELWZLVHRSHUDWRUVVKDOOSHUIRUPELWZLVHPDQLSXODWLRQVRQWKHRSHUDQGV³WKDWLVWKHRSHUDWRUVKDOOFRPELQHD
ELWLQRQHRSHUDQGZLWKLWVFRUUHVSRQGLQJELWLQWKHRWKHURSHUDQGWRFDOFXODWHRQHELWIRUWKHUHVXOW/RJLFWDEOHV
WKURXJKVKRZWKHUHVXOWVIRUHDFKSRVVLEOHFDOFXODWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³%LWZLVHELQDU\H[FOX
VLYHRURSHUDWRU
7DEOH³%LWZLVHELQDU\DQG
RSHUDWRU
[
]
A
[
]
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
]
[
[
[
]
[
[
[
[
7DEOH³%LWZLVHELQDU\H[FOX
VLYHQRURSHUDWRU
7DEOH³%LWZLVHELQDU\RU
RSHUDWRU
_
[
]
[
[
[
[
[
[
]
[
[
[
Aa
aA
[
]
[
[
[
[
[
[
[
[
[
]
[
[
[
[
7DEOH³%LWZLVHXQDU\QHJDWLRQRSHUDWRU
a
[
[
]
[
:KHQWKHRSHUDQGVDUHRIXQHTXDOELWOHQJWKWKHVKRUWHURSHUDQGLV]HURÀOOHGLQWKHPRVWVLJQLÀFDQWELWSRVLWLRQV
5HGXFWLRQRSHUDWRUV
7KHXQDU\UHGXFWLRQRSHUDWRUVVKDOOSHUIRUPDELWZLVHRSHUDWLRQRQDVLQJOHRSHUDQGWRSURGXFHDVLQJOHELWUHVXOW
)RUUHGXFWLRQDQGUHGXFWLRQRUDQGUHGXFWLRQ[RURSHUDWRUVWKHÀUVWVWHSRIWKHRSHUDWLRQVKDOODSSO\WKHRSHUDWRU
EHWZHHQWKHÀUVWELWRIWKHRSHUDQGDQGWKHVHFRQGXVLQJORJLFWDEOHVWKURXJK7KHVHFRQGDQGVXEVHTXHQW
VWHSVVKDOODSSO\WKHRSHUDWRUEHWZHHQWKHELWUHVXOWRIWKHSULRUVWHSDQGWKHQH[WELWRIWKHRSHUDQGXVLQJWKHVDPH
ORJLFWDEOH)RUUHGXFWLRQQDQGUHGXFWLRQQRUDQGUHGXFWLRQ[QRURSHUDWRUVWKHUHVXOWVKDOOEHFRPSXWHGE\LQYHUWLQJ
WKHUHVXOWRIWKHUHGXFWLRQDQGUHGXFWLRQRUDQGUHGXFWLRQ[RURSHUDWLRQUHVSHFWLYHO\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³5HGXFWLRQXQDU\RU
RSHUDWRU
7DEOH³5HGXFWLRQXQDU\DQG
RSHUDWRU
[
]
_
[
]
[
[
[
[
[
[
[
[
[
[
[
[
]
[
[
[
]
[
[
[
7DEOH³5HGXFWLRQXQDU\H[FOXVLYHRURSHUDWRU
A
[
]
[
[
[
[
[
[
[
[
[
]
[
[
[
[
([DPSOH
7DEOHVKRZVWKHUHVXOWVRIDSSO\LQJUHGXFWLRQRSHUDWRUVRQGLIIHUHQWRSHUDQGV
7DEOH³5HVXOWVRIXQDU\UHGXFWLRQRSHUDWLRQV
2SHUDQG
a
_
a_
A
aA
&RPPHQWV
·E
1RELWVVHW
·E
$OOELWVVHW
·E
(YHQQXPEHURIELWV
VHW
·E
2GGQXPEHURIELWVVHW
6KLIWRSHUDWRUV
7KHVKLIWRSHUDWRUVDQG!!VKDOOSHUIRUPOHIWDQGULJKWVKLIWVRIWKHLUOHIWRSHUDQGE\WKHQXPEHURIELWSRVLWLRQV
JLYHQE\WKHULJKWRSHUDQG%RWKVKLIWRSHUDWRUVVKDOOÀOOWKHYDFDWHGELWSRVLWLRQVZLWK]HURHV,IWKHULJKWRSHUDQGKDV
DQXQNQRZQRUKLJKLPSHGDQFHYDOXHWKHQWKHUHVXOWVKDOOEHXQNQRZQ7KHULJKWRSHUDQGLVDOZD\VWUHDWHGDVDQ
XQVLJQHGQXPEHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([DPSOH
PRGXOHVKLIW
UHJ>@VWDUWUHVXOW
LQLWLDOEHJLQ
VWDUW UHVXOW VWDUW
HQG
HQGPRGXOH
,QWKLVH[DPSOHWKHUHJLVWHUUHVXOWLVDVVLJQHGWKHELQDU\YDOXHZKLFKLVVKLIWHGWRWKHOHIWWZRSRVL
WLRQVDQG]HURÀOOHG
&RQGLWLRQDORSHUDWRU
7KHFRQGLWLRQDORSHUDWRUDOVRNQRZQDVWHUQDU\RSHUDWRUVKDOOEHULJKWDVVRFLDWLYHDQGVKDOOEHFRQVWUXFWHGXVLQJ
WKUHHRSHUDQGVVHSDUDWHGE\WZRRSHUDWRUVLQWKHIRUPDWJLYHQLQ6\QWD[
FRQGLWLRQDOBH[SUHVVLRQ H[SUHVVLRQ"H[SUHVVLRQH[SUHVVLRQ
6\QWD[³6\QWD[IRUFRQGLWLRQDORSHUDWRU
7KHHYDOXDWLRQRIDFRQGLWLRQDORSHUDWRUVKDOOEHJLQZLWKWKHHYDOXDWLRQRIH[SUHVVLRQ,IH[SUHVVLRQHYDOXDWHVWR
IDOVHWKHQH[SUHVVLRQVKDOOEHHYDOXDWHGDQGXVHGDVWKHUHVXOWRIWKHFRQGLWLRQDOH[SUHVVLRQ,IH[SUHVVLRQHYDO
XDWHVWRWUXHNQRZQYDOXHRWKHUWKDQWKHQH[SUHVVLRQLVHYDOXDWHGDQGXVHGDVWKHUHVXOW,IH[SUHVVLRQHYDOXDWHV
WRDPELJXRXVYDOXH[RU]WKHQERWKH[SUHVVLRQDQGH[SUHVVLRQVKDOOEHHYDOXDWHGDQGWKHLUUHVXOWVVKDOOEHFRP
ELQHGELWE\ELWXVLQJ7DEOHWRFDOFXODWHWKHÀQDOUHVXOWXQOHVVH[SUHVVLRQRUH[SUHVVLRQLVUHDOLQZKLFKFDVH
WKHUHVXOWVKDOOEH,IWKHOHQJWKVRIH[SUHVVLRQDQGH[SUHVVLRQDUHGLIIHUHQWWKHVKRUWHURSHUDQGVKDOOEHOHQJWK
HQHGWRPDWFKWKHORQJHUDQG]HURÀOOHGIURPWKHOHIWWKHKLJKRUGHUHQG
7DEOH³$PELJXRXVFRQGLWLRQUHVXOWVIRUFRQGLWLRQDORSHUDWRU
"
[
]
[
[
[
[
[
[
[
[
[
[
[
]
[
[
[
[
([DPSOH
7KHIROORZLQJH[DPSOHRIDWULVWDWHRXWSXWEXVLOOXVWUDWHVDFRPPRQXVHRIWKHFRQGLWLRQDORSHUDWRU
ZLUH>@EXVD GULYHBEXVD"GDWD·E]
7KHEXVFDOOHGGDWDLVGULYHQRQWREXVDZKHQGULYHBEXVDLV,IGULYHBEXVDLVXQNQRZQWKHQDQXQNQRZQ
YDOXHLVGULYHQRQWREXVD2WKHUZLVHEXVDLVQRWGULYHQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
&RQFDWHQDWLRQV
$FRQFDWHQDWLRQLVWKHMRLQLQJWRJHWKHURIELWVUHVXOWLQJIURPWZRRUPRUHH[SUHVVLRQV7KHFRQFDWHQDWLRQVKDOOEH
H[SUHVVHGXVLQJWKHEUDFHFKDUDFWHUV^DQG`ZLWKFRPPDVVHSDUDWLQJWKHH[SUHVVLRQVZLWKLQ
8QVL]HGFRQVWDQWQXPEHUVVKDOOQRWEHDOORZHGLQFRQFDWHQDWLRQV7KLVLVEHFDXVHWKHVL]HRIHDFKRSHUDQGLQWKHFRQ
FDWHQDWLRQLVQHHGHGWRFDOFXODWHWKHFRPSOHWHVL]HRIWKHFRQFDWHQDWLRQ
([DPSOHV
7KLVH[DPSOHFRQFDWHQDWHVIRXUH[SUHVVLRQV
^DE>@Z·E`
DQGLWLVHTXLYDOHQWWRWKHIROORZLQJH[DPSOH
^DE>@E>@E>@E>@Z·E·E·E`
&RQFDWHQDWLRQVFDQEHH[SUHVVHGXVLQJDUHSHWLWLRQPXOWLSOLHUDVVKRZQLQWKLVH[DPSOH
^^Z``7KLVLVHTXLYDOHQWWR^ZZZZ`
,IDUHSHWLWLRQPXOWLSOLHULVXVHGRQDIXQFWLRQFDOORSHUDQGWKHIXQFWLRQQHHGQRWEHHYDOXDWHGPXOWLSOHWLPHV)RU
H[DPSOH
UHVXOW ^^IXQFZ``
PD\EHFRPSXWHGDV
UHVXOW ^IXQFZIXQFZIXQFZIXQFZ`
RU
\ IXQFZ
UHVXOW ^\\\\`
7KLVLVDQRWKHUIRUPRIH[SUHVVLRQHYDOXDWLRQVKRUWFLUFXLWLQJ
7KHQH[WH[DPSOHLOOXVWUDWHVQHVWHGFRQFDWHQDWLRQV
^E^^DE``` 7KLVLVHTXLYDOHQWWR^EDEDEDE`
7KHUHSHWLWLRQPXOWLSOLHUVKDOOEHDFRQVWDQWH[SUHVVLRQ
(YHQWRU
7KHHYHQWRURSHUDWRUVKDOOSHUIRUPDQRURIHYHQWV6HHIRUHYHQWVDQGWULJJHULQJRIHYHQWV
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVDQDVVLJQPHQWWRUHJDZKHQDQHYHQWFKDQJHRFFXUVRQWULJRUHQDEOH
#WULJRUHQDEOHUHJD UHJE
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
2SHUDQGV
7KHUHDUHVHYHUDOW\SHVRIRSHUDQGVWKDWFDQEHVSHFLÀHGLQH[SUHVVLRQV7KHVLPSOHVWW\SHLVDUHIHUHQFHWRDQHWRU
UHJLVWHULQLWVFRPSOHWHIRUP³WKDWLVMXVWWKHQDPHRIWKHQHWRUUHJLVWHULVJLYHQ,QWKLVFDVHDOORIWKHELWVPDNLQJ
XSWKHQHWRUUHJLVWHUYDOXHVKDOOEHXVHGDVWKHRSHUDQG
,IDVLQJOHELWRIDYHFWRUQHWRUUHJLVWHULVUHTXLUHGWKHQDELWVHOHFWRSHUDQGVKDOOEHXVHG$SDUWVHOHFWRSHUDQGVKDOO
EHXVHGWRUHIHUHQFHDJURXSRIDGMDFHQWELWVLQDYHFWRUQHWRUUHJLVWHU
$PHPRU\ZRUGFDQEHUHIHUHQFHGDVDQRSHUDQG$FRQFDWHQDWLRQRIRWKHURSHUDQGVLQFOXGLQJQHVWHGFRQFDWHQD
WLRQVFDQEHVSHFLÀHGDVDQRSHUDQG$IXQFWLRQFDOOLVDQRSHUDQG
1HWDQGUHJLVWHUELWVHOHFWDQGSDUWVHOHFWDGGUHVVLQJ
%LWVHOHFWVH[WUDFWDSDUWLFXODUELWIURPDYHFWRUQHWRUUHJLVWHU7KHELWFDQEHDGGUHVVHGXVLQJDQH[SUHVVLRQ,IWKHELW
VHOHFWLVRXWRIWKHDGGUHVVERXQGVRUWKHELWVHOHFWLV[RU]WKHQWKHYDOXHUHWXUQHGE\WKHUHIHUHQFHVKDOOEH[
6HYHUDOFRQWLJXRXVELWVLQDYHFWRUUHJLVWHURUQHWFDQEHDGGUHVVHGDQGDUHNQRZQDVSDUWVHOHFWV$SDUWVHOHFWRID
YHFWRUUHJLVWHURUQHWLVJLYHQZLWKWKHIROORZLQJV\QWD[
YHFW>PVEBH[SUOVEBH[SU@
%RWKH[SUHVVLRQVVKDOOEHFRQVWDQWH[SUHVVLRQV7KHÀUVWH[SUHVVLRQKDVWRDGGUHVVDPRUHVLJQLÀFDQWELWWKDQWKHVHF
RQGH[SUHVVLRQ,IWKHSDUWVHOHFWLVRXWRIWKHDGGUHVVERXQGVRUWKHSDUWVHOHFWLV[RU]WKHQWKHYDOXHUHWXUQHGE\
WKHUHIHUHQFHVKDOOEH[
7KHELWVHOHFWRUSDUWVHOHFWRIDUHJLVWHUGHFODUHGDVUHDORUUHDOWLPHVKDOOEHFRQVLGHUHGLOOHJDO
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHVSHFLÀHVWKHVLQJOHELWRIDFFYHFWRUWKDWLVDGGUHVVHGE\WKHRSHUDQGLQGH[
DFF>LQGH[@
7KHDFWXDOELWWKDWLVDFFHVVHGE\DQDGGUHVVLVLQSDUWGHWHUPLQHGE\WKHGHFODUDWLRQRIDFF)RULQVWDQFHHDFKRI
WKHGHFODUDWLRQVRIDFFVKRZQLQWKHQH[WH[DPSOHFDXVHVDSDUWLFXODUYDOXHRILQGH[WRDFFHVVDGLIIHUHQWELW
UHJ>@DFF
UHJ>@DFF
([DPSOH³7KHQH[WH[DPSOHDQGWKHEXOOHWLWHPVWKDWIROORZLWLOOXVWUDWHWKHSULQFLSOHVRIELWDGGUHVVLQJ7KHFRGH
GHFODUHVDQELWUHJLVWHUFDOOHGYHFWDQGLQLWLDOL]HVLWWRDYDOXHRI7KHOLVWGHVFULEHVKRZWKHVHSDUDWHELWVRIWKDW
YHFWRUFDQEHDGGUHVVHG
UHJ>@YHFW
YHFW ILOOVYHFWZLWKWKHSDWWHUQ
PVELVELWOVELVELW
³
³
³
³
³
³
³
³
,IWKHYDOXHRIDGGULVWKHQYHFW>DGGU@UHWXUQV
,IWKHYDOXHRIDGGULVRXWRIERXQGVWKHQYHFW>DGGU@UHWXUQV[
,IDGGULVRUWKURXJKYHFW>DGGU@UHWXUQV
YHFW>@UHWXUQVWKHELWV
YHFW>@UHWXUQVWKHELWV
YHFW>H[SUHVVLRQWKDWUHWXUQV[@UHWXUQV[
YHFW>H[SUHVVLRQWKDWUHWXUQV]@UHWXUQV[
,IDQ\ELWRIDGGULV[RU]WKHQWKHYDOXHRIDGGULV[
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
127(6
³3DUWVHOHFWLQGLFHVWKDWHYDOXDWHWR[RU]PD\EHÁDJJHGDVDFRPSLOHWLPHHUURU
³%LWVHOHFWRUSDUWVHOHFWLQGLFHVWKDWDUHRXWVLGHRIWKHGHFODUHGUDQJHPD\EHÁDJJHGDVDFRPSLOHWLPHHUURU
0HPRU\DGGUHVVLQJ
'HFODUDWLRQRIPHPRU\LVGLVFXVVHGLQ7KLVVXEFODXVHGLVFXVVHVPHPRU\DGGUHVVLQJ
([DPSOHV
7KHQH[WH[DPSOHGHFODUHVDPHPRU\RIELWZRUGV
UHJ>@PHPBQDPH>@
7KHV\QWD[IRUDPHPRU\DGGUHVVVKDOOFRQVLVWRIWKHQDPHRIWKHPHPRU\DQGDQH[SUHVVLRQIRUWKHDGGUHVVVSHFLÀHG
ZLWKWKHIROORZLQJIRUPDW
PHPBQDPH>DGGUBH[SU@
7KHDGGUBH[SUFDQEHDQ\H[SUHVVLRQWKHUHIRUHPHPRU\LQGLUHFWLRQVFDQEHVSHFLÀHGLQDVLQJOHH[SUHVVLRQ7KH
QH[WH[DPSOHLOOXVWUDWHVPHPRU\LQGLUHFWLRQ
PHPBQDPH>PHPBQDPH>@@
,QWKLVH[DPSOHPHPBQDPH>@DGGUHVVHVZRUGWKUHHRIWKHPHPRU\FDOOHGPHPBQDPH7KHYDOXHDWZRUGWKUHHLV
WKHLQGH[LQWRPHPBQDPHWKDWLVXVHGE\WKHPHPRU\DGGUHVVPHPBQDPH>PHPBQDPH>@@$VZLWKELWVHOHFWV
WKHDGGUHVVERXQGVJLYHQLQWKHGHFODUDWLRQRIWKHPHPRU\GHWHUPLQHWKHHIIHFWRIWKHDGGUHVVH[SUHVVLRQ,IWKHLQGH[
LVRXWRIWKHDGGUHVVERXQGVRULIDQ\ELWLQWKHDGGUHVVLV[RU]WKHQWKHYDOXHRIWKHUHIHUHQFHVKDOOEH[
127(³7KHUHLVQRPHFKDQLVPWRH[SUHVVELWVHOHFWVRUSDUWVHOHFWVRIPHPRU\ZRUGVGLUHFWO\,IWKLVLVUHTXLUHGWKHQWKHPHP
RU\ZRUGKDVWREHÀUVWWUDQVIHUUHGWRDQDSSURSULDWHO\VL]HGWHPSRUDU\UHJLVWHU
6WULQJV
6WULQJRSHUDQGVVKDOOEHWUHDWHGDVFRQVWDQWQXPEHUVFRQVLVWLQJRIDVHTXHQFHRIELW$6&,,FRGHVRQHSHUFKDUDFWHU
$Q\9HULORJ+'/RSHUDWRUFDQPDQLSXODWHVWULQJRSHUDQGV7KHRSHUDWRUVKDOOEHKDYHDVWKRXJKWKHHQWLUHVWULQJZHUH
DVLQJOHQXPHULFYDOXH
:KHQDYDULDEOHLVODUJHUWKDQUHTXLUHGWRKROGWKHYDOXHEHLQJDVVLJQHGWKHFRQWHQWVDIWHUWKHDVVLJQPHQWVKDOOEH
SDGGHGRQWKHOHIWZLWK]HURV7KLVLVFRQVLVWHQWZLWKWKHSDGGLQJWKDWRFFXUVGXULQJDVVLJQPHQWRIQRQVWULQJYDOXHV
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVDVWULQJYDULDEOHODUJHHQRXJKWRKROGFKDUDFWHUVDQGDVVLJQVDYDOXHWRLW7KH
H[DPSOHWKHQPDQLSXODWHVWKHVWULQJXVLQJWKHFRQFDWHQDWLRQRSHUDWRU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PRGXOHVWULQJBWHVW
UHJ>@VWULQJYDU
LQLWLDOEHJLQ
VWULQJYDU +HOORZRUOG
GLVSOD\VLVVWRUHGDVKVWULQJYDUVWULQJYDU
VWULQJYDU ^VWULQJYDU`
GLVSOD\VLVVWRUHGDVKVWULQJYDUVWULQJYDU
HQG
HQGPRGXOH
7KHUHVXOWRIVLPXODWLQJWKHDERYHGHVFULSWLRQLV
+HOORZRUOGLVVWRUHGDVFFIIF
+HOORZRUOGLVVWRUHGDVFFIIF
6WULQJRSHUDWLRQV
7KHFRPPRQVWULQJRSHUDWLRQVFRS\FRQFDWHQDWHDQGFRPSDUHDUHVXSSRUWHGE\9HULORJ+'/RSHUDWRUV&RS\LVSUR
YLGHGE\VLPSOHDVVLJQPHQW&RQFDWHQDWLRQLVSURYLGHGE\WKHFRQFDWHQDWLRQRSHUDWRU&RPSDULVRQLVSURYLGHGE\WKH
HTXDOLW\RSHUDWRUV
:KHQPDQLSXODWLQJVWULQJYDOXHVLQYHFWRUYDULDEOHVDWOHDVWQELWVVKDOOEHUHTXLUHGLQWKHYHFWRUZKHUHQLVWKH
QXPEHURIFKDUDFWHUVLQWKHVWULQJ
6WULQJYDOXHSDGGLQJDQGSRWHQWLDOSUREOHPV
:KHQVWULQJVDUHDVVLJQHGWRYDULDEOHVWKHYDOXHVVWRUHGVKDOOEHSDGGHGRQWKHOHIWZLWK]HURV3DGGLQJFDQDIIHFWWKH
UHVXOWV RI FRPSDULVRQ DQG FRQFDWHQDWLRQ RSHUDWLRQV7KH FRPSDULVRQ DQG FRQFDWHQDWLRQ RSHUDWRUV VKDOO QRW GLVWLQ
JXLVKEHWZHHQ]HURVUHVXOWLQJIURPSDGGLQJDQGWKHRULJLQDOVWULQJFKDUDFWHUV?$6&,,18//
([DPSOHV
7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHSRWHQWLDOSUREOHP
UHJ>@VV
LQLWLDOEHJLQ
V +HOOR
V ZRUOG
LI^VV` +HOORZRUOG
GLVSOD\VWULQJVDUHHTXDO
HQG
7KHFRPSDULVRQLQWKLVH[DPSOHIDLOVEHFDXVHGXULQJWKHDVVLJQPHQWWKHVWULQJYDULDEOHVDUHSDGGHGDVLOOXVWUDWHGLQ
WKHQH[WH[DPSOH
V FFI
V IF
7KHFRQFDWHQDWLRQRIVDQGVLQFOXGHVWKH]HURSDGGLQJUHVXOWLQJLQWKHIROORZLQJYDOXH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
FFIIF
6LQFHWKHVWULQJ´+HOORZRUOGµFRQWDLQVQR]HURSDGGLQJWKHFRPSDULVRQIDLOVDVVKRZQLQWKHIROORZLQJH[DPSOH
V
V
FFIIF
FFIIF
+HOORZRUOG
7KLVFRPSDULVRQ\LHOGVDUHVXOWRI]HURZKLFKLVHTXLYDOHQWWRIDOVH
1XOOVWULQJKDQGOLQJ
7KHQXOOVWULQJ´µVKDOOEHFRQVLGHUHGHTXLYDOHQWWRWKH$6&,,18//´?µZKLFKKDVDYDOXH]HURZKLFKLV
GLIIHUHQWIURPDVWULQJ´µ
0LQLPXPW\SLFDODQGPD[LPXPGHOD\H[SUHVVLRQV
9HULORJ+'/GHOD\H[SUHVVLRQVFDQEHVSHFLÀHGDVWKUHHH[SUHVVLRQVVHSDUDWHGE\FRORQV7KLVLVLQWHQGHGWRUHSUH
VHQWPLQLPXPW\SLFDODQGPD[LPXPYDOXHV³LQWKDWRUGHU7KHV\QWD[LVJLYHQLQ6\QWD[
PLQW\SPD[BH[SUHVVLRQ H[SUHVVLRQ
_H[SUHVVLRQH[SUHVVLRQH[SUHVVLRQ
6\QWD[³6\QWD[IRUPLQW\SPD[H[SUHVVLRQ
9HULORJ+'/PRGHOVW\SLFDOO\VSHFLI\WKUHHYDOXHVIRUGHOD\H[SUHVVLRQV7KHWKUHHYDOXHVDOORZDGHVLJQWREHWHVWHG
ZLWKPLQLPXPW\SLFDORUPD[LPXPGHOD\YDOXHV
9DOXHVH[SUHVVHGLQPLQW\SPD[IRUPDWFDQEHXVHGLQH[SUHVVLRQV7KHPLQW\SPD[IRUPDWFDQEHXVHGZKHUHYHU
H[SUHVVLRQVFDQDSSHDU
([DPSOHV
([DPSOH³7KLVH[DPSOHVKRZVDQH[SUHVVLRQWKDWGHÀQHVDVLQJOHWULSOHWRIGHOD\YDOXHV7KHPLQLPXPYDOXHLVWKH
VXPRIDGWKHW\SLFDOYDOXHLVEHWKHPD[LPXPYDOXHLVFIDVIROORZV
DEFGHI
([DPSOH³7KHQH[WH[DPSOHVKRZVVRPHW\SLFDOH[SUHVVLRQVWKDWDUHXVHGWRVSHFLI\PLQW\SPD[IRUPDWYDO
XHV
YDO·G·G·G
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([SUHVVLRQELWOHQJWKV
&RQWUROOLQJ WKH QXPEHU RI ELWV WKDW DUH XVHG LQ H[SUHVVLRQ HYDOXDWLRQV LV LPSRUWDQW LI FRQVLVWHQW UHVXOWV DUH WR EH
DFKLHYHG6RPHVLWXDWLRQVKDYHDVLPSOHVROXWLRQIRUH[DPSOHLIDELWZLVHDQGRSHUDWLRQLVVSHFLÀHGRQWZRELW
UHJLVWHUVWKHQWKHUHVXOWLVDELWYDOXH+RZHYHULQVRPHVLWXDWLRQVLWLVQRWREYLRXVKRZPDQ\ELWVDUHXVHGWR
HYDOXDWHDQH[SUHVVLRQRUZKDWVL]HWKHUHVXOWVKRXOGEH
)RUH[DPSOHVKRXOGDQDULWKPHWLFDGGRIWZRELWYDOXHVSHUIRUPWKHHYDOXDWLRQXVLQJELWVRUVKRXOGWKHHYDOX
DWLRQXVHELWVLQRUGHUWRDOORZIRUDSRVVLEOHFDUU\RYHUÁRZ"7KHDQVZHUGHSHQGVRQWKHW\SHRIGHYLFHEHLQJ
PRGHOHGDQGZKHWKHUWKDWGHYLFHKDQGOHVFDUU\RYHUÁRZ7KH9HULORJ+'/XVHVWKHELWOHQJWKRIWKHRSHUDQGVWR
GHWHUPLQHKRZPDQ\ELWVWRXVHZKLOHHYDOXDWLQJDQH[SUHVVLRQ7KHELWOHQJWKUXOHVDUHJLYHQLQ,QWKHFDVHRIWKH
DGGLWLRQRSHUDWRUWKHELWOHQJWKRIWKHODUJHVWRSHUDQGLQFOXGLQJWKHOHIWKDQGVLGHRIDQDVVLJQPHQWVKDOOEHXVHG
([DPSOHV
UHJ>@DEELWUHJLVWHUV
UHJ>@VXP$ELWUHJLVWHU
UHJ>@VXP%ELWUHJLVWHU
VXP$ DEH[SUHVVLRQHYDOXDWHVXVLQJELWV
VXP% DEH[SUHVVLRQHYDOXDWHVXVLQJELWV
5XOHVIRUH[SUHVVLRQELWOHQJWKV
7KHUXOHVJRYHUQLQJWKHH[SUHVVLRQELWOHQJWKVKDYHEHHQIRUPXODWHGVRWKDWPRVWSUDFWLFDOVLWXDWLRQVKDYHDQDWXUDO
VROXWLRQ
7KH QXPEHU RI ELWV RI DQ H[SUHVVLRQ NQRZQ DV WKH VL]H RI WKH H[SUHVVLRQ VKDOO EH GHWHUPLQHG E\ WKH RSHUDQGV
LQYROYHGLQWKHH[SUHVVLRQDQGWKHFRQWH[WLQZKLFKWKHH[SUHVVLRQLVJLYHQ
$ VHOIGHWHUPLQHG H[SUHVVLRQ LV RQH ZKHUH WKH ELW OHQJWK RI WKH H[SUHVVLRQ LV VROHO\ GHWHUPLQHG E\ WKH H[SUHVVLRQ
LWVHOI³IRUH[DPSOHDQH[SUHVVLRQUHSUHVHQWLQJDGHOD\YDOXH
$FRQWH[WGHWHUPLQHGH[SUHVVLRQLVRQHZKHUHWKHELWOHQJWKRIWKHH[SUHVVLRQLVGHWHUPLQHGE\WKHELWOHQJWKRIWKH
H[SUHVVLRQDQGE\WKHIDFWWKDWLWLVSDUWRIDQRWKHUH[SUHVVLRQ)RUH[DPSOHWKHELWVL]HRIWKHULJKWKDQGVLGHH[SUHV
VLRQRIDQDVVLJQPHQWGHSHQGVRQLWVHOIDQGWKHVL]HRIWKHOHIWKDQGVLGH
7DEOHVKRZVKRZWKHIRUPRIDQH[SUHVVLRQVKDOOGHWHUPLQHWKHELWOHQJWKVRIWKHUHVXOWVRIWKHH[SUHVVLRQ,Q
7DEOHLMDQGNUHSUHVHQWH[SUHVVLRQVRIDQRSHUDQGDQG/LUHSUHVHQWVWKHELWOHQJWKRIWKHRSHUDQGUHSUH
VHQWHGE\L
7DEOH³%LWOHQJWKVUHVXOWLQJIURPH[SUHVVLRQV
6HFWLRQ
([SUHVVLRQ
%LWOHQJWK
8QVL]HGFRQVWDQWQXPEHU
6DPHDVLQWHJHU
6L]HGFRQVWDQWQXPEHU
$VJLYHQ
LRSMZKHUHRSLV
_AAaaA
PD[/L/M
LM
/L/M
RSLZKHUHRSLV
a
/L
&RPPHQWV
,(((
6WG
7DEOH³%LWOHQJWKVUHVXOWLQJIURPH[SUHVVLRQVFRQWLQXHG
([SUHVVLRQ
%LWOHQJWK
&RPPHQWV
LRSMZKHUHRSLV
__!! ELW
$OORSHUDQGVDUHVHOIGHWHUPLQHG
RSLZKHUHRSLV
a_a_AaAAa
ELW
$OORSHUDQGVDUHVHOIGHWHUPLQHG
LRSMZKHUHRSLV
!!
/L
MLVVHOIGHWHUPLQHG
L"MN
PD[/M/N
LLVVHOIGHWHUPLQHG
^LM`
/L/M
$OORSHUDQGVDUHVHOIGHWHUPLQHG
^L^MN``
L/M/N
$OORSHUDQGVDUHVHOIGHWHUPLQHG
$QH[DPSOHRIDQH[SUHVVLRQELWOHQJWKSUREOHP
'XULQJWKHHYDOXDWLRQRIDQH[SUHVVLRQLQWHULPUHVXOWVVKDOOWDNHWKHVL]HRIWKHODUJHVWRSHUDQGLQFDVHRIDQDVVLJQ
PHQWWKLVDOVRLQFOXGHVWKHOHIWKDQGVLGH&DUHKDVWREHWDNHQWRSUHYHQWORVVRIDVLJQLÀFDQWELWGXULQJH[SUHVVLRQ
HYDOXDWLRQ7KHH[DPSOHEHORZGHVFULEHVKRZWKHELWOHQJWKVRIWKHRSHUDQGVFRXOGUHVXOWLQWKHORVVRIDVLJQLÀFDQW
ELW
*LYHQWKHIROORZLQJGHFODUDWLRQV
UHJ>@DEDQVZHUELWUHJLVWHUV
7KHLQWHQWLVWRHYDOXDWHWKHH[SUHVVLRQ
DQVZHU DE!!ZLOOQRWZRUNSURSHUO\
ZKHUHDDQGEDUHWREHDGGHGZKLFKPD\UHVXOWLQDQRYHUÁRZDQGWKHQVKLIWHGULJKWE\ELWWRSUHVHUYHWKHFDUU\
ELWLQWKHELWDQVZHU
$SUREOHPDULVHVKRZHYHUEHFDXVHDOORSHUDQGVLQWKHH[SUHVVLRQDUHRIDELWZLGWK7KHUHIRUHWKHH[SUHVVLRQD
ESURGXFHVDQLQWHULPUHVXOWWKDWLVRQO\ELWVZLGHWKXVORVLQJWKHFDUU\ELWEHIRUHWKHHYDOXDWLRQSHUIRUPVWKH
ELWULJKWVKLIWRSHUDWLRQ
7KHVROXWLRQLVWRIRUFHWKHH[SUHVVLRQD EWRHYDOXDWHXVLQJDWOHDVWELWV)RUH[DPSOHDGGLQJDQLQWHJHU
YDOXHRIWRWKHH[SUHVVLRQZLOOFDXVHWKHHYDOXDWLRQWREHSHUIRUPHGXVLQJWKHELWVL]HRILQWHJHUV7KHIROORZLQJ
H[DPSOHZLOOSURGXFHWKHLQWHQGHGUHVXOW
DQVZHU DE!!ZLOOZRUNFRUUHFWO\
6HFWLRQ
,(((
6WG
6HFWLRQ
6FKHGXOLQJVHPDQWLFV
([HFXWLRQRIDPRGHO
7KHEDODQFHRIWKHVHFWLRQVRIWKLVVWDQGDUGGHVFULEHWKHEHKDYLRURIHDFKRIWKHHOHPHQWVRIWKHODQJXDJH7KLVVHF
WLRQJLYHVDQRYHUYLHZRIWKHLQWHUDFWLRQVEHWZHHQWKHVHHOHPHQWVHVSHFLDOO\ZLWKUHVSHFWWRWKHVFKHGXOLQJDQGH[H
FXWLRQRIHYHQWV
7KHHOHPHQWVWKDWPDNHXSWKH9HULORJ+'/FDQEHXVHGWRGHVFULEHWKHEHKDYLRUDWYDU\LQJOHYHOVRIDEVWUDFWLRQRI
HOHFWURQLFKDUGZDUH$Q+'/KDVWREHDSDUDOOHOSURJUDPPLQJODQJXDJH7KHH[HFXWLRQRIFHUWDLQODQJXDJHFRQ
VWUXFWVLVGHÀQHGE\SDUDOOHOH[HFXWLRQRIEORFNVRUSURFHVVHV,WLVLPSRUWDQWWRXQGHUVWDQGZKDWH[HFXWLRQRUGHULV
JXDUDQWHHGWRWKHXVHUDQGZKDWH[HFXWLRQRUGHULVLQGHWHUPLQDWH
$OWKRXJKWKH9HULORJ+'/LVXVHGIRUPRUHWKDQVLPXODWLRQWKHVHPDQWLFVRIWKHODQJXDJHDUHGHÀQHGIRUVLPXODWLRQ
DQGHYHU\WKLQJHOVHLVDEVWUDFWHGIURPWKLVEDVHGHÀQLWLRQ
(YHQWVLPXODWLRQ
7KH9HULORJ+'/LVGHÀQHGLQWHUPVRIDGLVFUHWHHYHQWH[HFXWLRQPRGHO7KHGLVFUHWHHYHQWVLPXODWLRQLVGHVFULEHGLQ
PRUHGHWDLOLQWKLVVHFWLRQWRSURYLGHDFRQWH[WWRGHVFULEHWKHPHDQLQJDQGYDOLGLQWHUSUHWDWLRQRI9HULORJ+'/FRQ
VWUXFWV7KHVHUHVXOWLQJGHÀQLWLRQVSURYLGHWKHVWDQGDUG9HULORJUHIHUHQFHPRGHOIRUVLPXODWLRQZKLFKDOOFRPSOLDQW
VLPXODWRUVVKDOOLPSOHPHQW1RWHWKRXJKWKDWWKHUHLVDJUHDWGHDORIFKRLFHLQWKHGHÀQLWLRQVWKDWIROORZDQGGLIIHU
HQFHVLQVRPHGHWDLOVRIH[HFXWLRQDUHWREHH[SHFWHGEHWZHHQGLIIHUHQWVLPXODWRUV,QDGGLWLRQ9HULORJ+'/VLPXOD
WRUV DUH IUHH WR XVH GLIIHUHQW DOJRULWKPV WKDQ WKRVH GHVFULEHG LQ WKLV VHFWLRQ SURYLGHG WKH XVHUYLVLEOH HIIHFW LV
FRQVLVWHQWZLWKWKHUHIHUHQFHPRGHO
$GHVLJQFRQVLVWVRIFRQQHFWHGWKUHDGVRIH[HFXWLRQRUSURFHVVHV3URFHVVHVDUHREMHFWVWKDWFDQEHHYDOXDWHGWKDW
PD\ KDYH VWDWH DQG WKDW FDQ UHVSRQG WR FKDQJHV RQ WKHLU LQSXWV WR SURGXFH RXWSXWV 3URFHVVHV LQFOXGH SULPLWLYHV
PRGXOHVLQLWLDODQGDOZD\VSURFHGXUDOEORFNVFRQWLQXRXVDVVLJQPHQWVDV\QFKURQRXVWDVNVDQGSURFHGXUDODVVLJQ
PHQWVWDWHPHQWV
(YHU\FKDQJHLQYDOXHRIDQHWRUUHJLVWHULQWKHFLUFXLWEHLQJVLPXODWHGDVZHOODVWKHQDPHGHYHQWLVFRQVLGHUHGDQ
XSGDWHHYHQW
3URFHVVHVDUHVHQVLWLYHWRXSGDWHHYHQWV:KHQDQXSGDWHHYHQWLVH[HFXWHGDOOWKHSURFHVVHVWKDWDUHVHQVLWLYHWRWKDW
HYHQWDUHHYDOXDWHGLQDQDUELWUDU\RUGHU7KHHYDOXDWLRQRIDSURFHVVLVDOVRDQHYHQWNQRZQDVDQHYDOXDWLRQHYHQW
,QDGGLWLRQWRHYHQWVDQRWKHUNH\DVSHFWRIDVLPXODWRULVWLPH7KHWHUPVLPXODWLRQWLPHLVXVHGWRUHIHUWRWKHWLPH
YDOXHPDLQWDLQHGE\WKHVLPXODWRUWRPRGHOWKHDFWXDOWLPHLWZRXOGWDNHIRUWKHFLUFXLWEHLQJVLPXODWHG7KHWHUP
WLPHLVXVHGLQWHUFKDQJHDEO\ZLWKVLPXODWLRQWLPHLQWKLVVHFWLRQ
(YHQWVFDQRFFXUDWGLIIHUHQWWLPHV,QRUGHUWRNHHSWUDFNRIWKHHYHQWVDQGWRPDNHVXUHWKH\DUHSURFHVVHGLQWKHFRU
UHFWRUGHUWKHHYHQWVDUHNHSWRQDQHYHQWTXHXHRUGHUHGE\VLPXODWLRQWLPH3XWWLQJDQHYHQWRQWKHTXHXHLVFDOOHG
VFKHGXOLQJDQHYHQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHVWUDWLILHGHYHQWTXHXH
7KH9HULORJHYHQWTXHXHLVORJLFDOO\VHJPHQWHGLQWRÀYHGLIIHUHQWUHJLRQV(YHQWVDUHDGGHGWRDQ\RIWKHÀYHUHJLRQV
EXWDUHRQO\UHPRYHGIURPWKHDFWLYHUHJLRQ
(YHQWV WKDW RFFXU DW WKH FXUUHQW VLPXODWLRQ WLPH DQG FDQ EH SURFHVVHG LQ DQ\ RUGHU 7KHVH DUH WKH DFWLYH
HYHQWV
(YHQWV WKDW RFFXU DW WKH FXUUHQW VLPXODWLRQ WLPH EXW WKDW VKDOO EH SURFHVVHG DIWHU DOO WKH DFWLYH HYHQWV DUH
SURFHVVHG7KHVHDUHWKHLQDFWLYHHYHQWV
(YHQWV WKDW KDYH EHHQ HYDOXDWHG GXULQJ VRPH SUHYLRXV VLPXODWLRQ WLPH EXW WKDW VKDOO EH DVVLJQHG DW WKLV
VLPXODWLRQWLPHDIWHUDOOWKHDFWLYHDQGLQDFWLYHHYHQWVDUHSURFHVVHG7KHVHDUHWKHQRQEORFNLQJDVVLJQXSGDWH
HYHQWV
(YHQWV WKDW VKDOO EH SURFHVVHG DIWHU DOO WKH DFWLYH LQDFWLYH DQG QRQEORFNLQJ DVVLJQ XSGDWH HYHQWV DUH
SURFHVVHG7KHVHDUHWKHPRQLWRUHYHQWV
(YHQWVWKDWRFFXUDWVRPHIXWXUHVLPXODWLRQWLPH7KHVHDUHWKH IXWXUHHYHQWV)XWXUHHYHQWVDUHGLYLGHGLQWR
IXWXUHLQDFWLYHHYHQWVDQGIXWXUHQRQEORFNLQJDVVLJQPHQWXSGDWHHYHQWV
7KHSURFHVVLQJRIDOOWKHDFWLYHHYHQWVLVFDOOHGDVLPXODWLRQF\FOH
7KHIUHHGRPWRFKRRVHDQ\DFWLYHHYHQWIRULPPHGLDWHSURFHVVLQJLVDQHVVHQWLDOVRXUFHRIQRQGHWHUPLQLVPLQWKH9HU
LORJ+'/
$QH[SOLFLW]HURGHOD\UHTXLUHVWKDWWKHSURFHVVEHVXVSHQGHGDQGDGGHGDVDQLQDFWLYHHYHQWIRUWKHFXUUHQWWLPH
VRWKDWWKHSURFHVVLVUHVXPHGLQWKHQH[WVLPXODWLRQF\FOHLQWKHFXUUHQWWLPH
$QRQEORFNLQJDVVLJQPHQWVHHFUHDWHVDQRQEORFNLQJDVVLJQXSGDWHHYHQWVFKHGXOHGIRUFXUUHQWRUDODWHUVLP
XODWLRQWLPH
7KHPRQLWRUDQGVWUREHV\VWHPWDVNVVHHFUHDWHPRQLWRUHYHQWVIRUWKHLUDUJXPHQWV7KHVHHYHQWVDUHFRQWLQ
XRXVO\UHHQDEOHGLQHYHU\VXFFHVVLYHWLPHVWHS7KHPRQLWRUHYHQWVDUHXQLTXHLQWKDWWKH\FDQQRWFUHDWHDQ\RWKHU
HYHQWV
7KH FDOO EDFN SURFHGXUHV VFKHGXOHG ZLWK 3/, URXWLQHV VXFK DV WIBV\QFKURQL]H VHH RU
YSLBUHJLVWHUBFEFEBUHDGZULWHVHHVKDOOEHWUHDWHGDVLQDFWLYHHYHQWV
7KH9HULORJVLPXODWLRQUHIHUHQFHPRGHO
,QDOOWKHH[DPSOHVWKDWIROORZ7UHIHUVWRWKHFXUUHQWVLPXODWLRQWLPHDQGDOOHYHQWVDUHKHOGLQWKHHYHQWTXHXH
RUGHUHGE\VLPXODWLRQWLPH
ZKLOHWKHUHDUHHYHQWV^
LIQRDFWLYHHYHQWV^
LIWKHUHDUHLQDFWLYHHYHQWV^
DFWLYDWHDOOLQDFWLYHHYHQWV
`HOVHLIWKHUHDUHQRQEORFNLQJDVVLJQXSGDWHHYHQWV^
DFWLYDWHDOOQRQEORFNLQJDVVLJQXSGDWHHYHQWV
`HOVHLIWKHUHDUHPRQLWRUHYHQWV^
DFWLYDWHDOOPRQLWRUHYHQWV
`HOVH^
DGYDQFH7WRWKHQH[WHYHQWWLPH
DFWLYDWHDOOLQDFWLYHHYHQWVIRUWLPH7
`
`
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
`
,(((
6WG
( DQ\DFWLYHHYHQW
LI(LVDQXSGDWHHYHQW^
XSGDWHWKHPRGLÀHGREMHFW
DGGHYDOXDWLRQHYHQWVIRUVHQVLWLYHSURFHVVHVWRHYHQWTXHXH
`HOVH^VKDOOEHDQHYDOXDWLRQHYHQW
HYDOXDWHWKHSURFHVV
DGGXSGDWHHYHQWVWRWKHHYHQWTXHXH
`
'HWHUPLQLVP
7KLVVWDQGDUGJXDUDQWHHVDFHUWDLQVFKHGXOLQJRUGHU
6WDWHPHQWVZLWKLQDEHJLQHQGEORFNVKDOOEHH[HFXWHGLQWKHRUGHULQZKLFKWKH\DSSHDULQWKDWEHJLQ
HQGEORFN([HFXWLRQRIVWDWHPHQWVLQDSDUWLFXODU EHJLQHQGEORFNFDQEHVXVSHQGHGLQIDYRURIRWKHU
SURFHVVHVLQWKHPRGHOKRZHYHULQQRFDVHVKDOOWKHVWDWHPHQWVLQDEHJLQHQGEORFNEHH[HFXWHGLQDQ\
RUGHURWKHUWKDQWKDWLQZKLFKWKH\DSSHDULQWKHVRXUFH
1RQEORFNLQJ DVVLJQPHQWV VKDOO EH SHUIRUPHG LQ WKH RUGHU WKH VWDWHPHQWV ZHUH H[HFXWHG &RQVLGHU WKH
IROORZLQJH[DPSOH
LQLWLDOEHJLQ
D D HQG
:KHQWKLVEORFNLVH[HFXWHGWKHUHZLOOEHWZRHYHQWVDGGHGWRWKHQRQEORFNLQJDVVLJQXSGDWHTXHXH7KH
SUHYLRXVUXOHUHTXLUHVWKDWWKH\EHHQWHUHGRQWKHTXHXHLQVRXUFHRUGHUWKLVUXOHUHTXLUHVWKDWWKH\EHWDNHQ
IURPWKHTXHXHDQGSHUIRUPHGLQVRXUFHRUGHUDVZHOO+HQFHDWWKHHQGRIWLPHVWHSWKHYDULDEOHDZLOOEH
DVVLJQHGDQGWKHQ
1RQGHWHUPLQLVP
2QHVRXUFHRIQRQGHWHUPLQLVPLVWKHIDFWWKDWDFWLYHHYHQWVFDQEHWDNHQRIIWKHTXHXHDQGSURFHVVHGLQDQ\RUGHU
$QRWKHUVRXUFHRIQRQGHWHUPLQLVPLVWKDWVWDWHPHQWVZLWKRXWWLPHFRQWUROFRQVWUXFWVLQEHKDYLRUDOEORFNVGRQRWKDYH
WREHH[HFXWHGDVRQHHYHQW7LPHFRQWUROVWDWHPHQWVDUHWKHH[SUHVVLRQDQG#H[SUHVVLRQFRQVWUXFWVVHH$W
DQ\WLPHZKLOHHYDOXDWLQJDEHKDYLRUDOVWDWHPHQWWKHVLPXODWRUPD\VXVSHQGH[HFXWLRQDQGSODFHWKHSDUWLDOO\FRP
SOHWHGHYHQWDVDSHQGLQJDFWLYHHYHQWRQWKHHYHQWTXHXH7KHHIIHFWRIWKLVLVWRDOORZWKHLQWHUOHDYLQJRISURFHVVH[H
FXWLRQ1RWHWKDWWKHRUGHURILQWHUOHDYHGH[HFXWLRQLVQRQGHWHUPLQLVWLFDQGQRWXQGHUFRQWURORIWKHXVHU
5DFHFRQGLWLRQV
%HFDXVH WKH H[HFXWLRQ RI H[SUHVVLRQ HYDOXDWLRQ DQG QHW XSGDWH HYHQWV PD\ EH LQWHUPLQJOHG UDFH FRQGLWLRQV DUH
SRVVLEOH
DVVLJQS T
LQLWLDOEHJLQ
T T GLVSOD\S
HQG
7KHVLPXODWRULVFRUUHFWLQGLVSOD\LQJHLWKHUDRUD7KHDVVLJQPHQWRIWRTHQDEOHVDQXSGDWHHYHQWIRUS7KH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
VLPXODWRUPD\HLWKHUFRQWLQXHDQGH[HFXWHWKHGLVSOD\WDVNRUH[HFXWHWKHXSGDWHIRU SIROORZHGE\WKHGLVSOD\
WDVN
6FKHGXOLQJLPSOLFDWLRQRIDVVLJQPHQWV
$VVLJQPHQWVDUHWUDQVODWHGLQWRSURFHVVHVDQGHYHQWVDVIROORZV
&RQWLQXRXVDVVLJQPHQW
$ FRQWLQXRXV DVVLJQPHQW VWDWHPHQW 6HFWLRQ FRUUHVSRQGV WR D SURFHVV VHQVLWLYH WR WKH VRXUFH HOHPHQWV LQ WKH
H[SUHVVLRQ:KHQWKHYDOXHRIWKHH[SUHVVLRQFKDQJHVLWFDXVHVDQDFWLYHXSGDWHHYHQWWREHDGGHGWRWKHHYHQWTXHXH
XVLQJFXUUHQWYDOXHVWRGHWHUPLQHWKHWDUJHW
3URFHGXUDOFRQWLQXRXVDVVLJQPHQW
$SURFHGXUDOFRQWLQXRXVDVVLJQPHQWZKLFKDUHWKHDVVLJQRUIRUFHVWDWHPHQWVHHFRUUHVSRQGVWRDSURFHVVWKDW
LVVHQVLWLYHWRWKHVRXUFHHOHPHQWVLQWKHH[SUHVVLRQ:KHQWKHYDOXHRIWKHH[SUHVVLRQFKDQJHVLWFDXVHVDQDFWLYH
XSGDWHHYHQWWREHDGGHGWRWKHHYHQWTXHXHXVLQJFXUUHQWYDOXHVWRGHWHUPLQHWKHWDUJHW
$GHDVVLJQRUDUHOHDVHVWDWHPHQWGHDFWLYDWHVDQ\FRUUHVSRQGLQJDVVLJQRUIRUFHVWDWHPHQWV
%ORFNLQJDVVLJQPHQW
$ EORFNLQJ DVVLJQPHQW VWDWHPHQW ZLWK D GHOD\ FRPSXWHV WKH ULJKWKDQG VLGH YDOXH XVLQJ WKH FXUUHQW YDOXHV WKHQ
FDXVHVWKHH[HFXWLQJSURFHVVWREHVXVSHQGHGDQGVFKHGXOHGDVDIXWXUHHYHQW,IWKHGHOD\LVWKHSURFHVVLVVFKHG
XOHGDVDQLQDFWLYHHYHQWIRUWKHFXUUHQWWLPH
:KHQWKHSURFHVVLVUHWXUQHGRULILWUHWXUQVLPPHGLDWHO\LIQRGHOD\LVVSHFLÀHGWKHSURFHVVSHUIRUPVWKHDVVLJQ
PHQWWRWKHOHIWKDQGVLGHDQGHQDEOHVDQ\HYHQWVEDVHGXSRQWKHXSGDWHRIWKHOHIWKDQGVLGH7KHYDOXHVDWWKHWLPH
WKHSURFHVVUHVXPHVDUHXVHGWRGHWHUPLQHWKHWDUJHWV([HFXWLRQPD\WKHQFRQWLQXHZLWKWKHQH[WVHTXHQWLDOVWDWH
PHQWRUZLWKRWKHUDFWLYHHYHQWV
1RQEORFNLQJDVVLJQPHQW
$QRQEORFNLQJDVVLJQPHQWVWDWHPHQWDOZD\VFRPSXWHVWKHXSGDWHGYDOXHDQGVFKHGXOHVWKHXSGDWHDVDQRQEORFNLQJ
DVVLJQXSGDWHHYHQWHLWKHULQWKLVWLPHVWHSLIWKHGHOD\LV]HURRUDVDIXWXUHHYHQWLIWKHGHOD\LVQRQ]HUR7KHYDOXHV
LQHIIHFWZKHQWKHXSGDWHLVSODFHGRQWKHHYHQWTXHXHDUHXVHGWRFRPSXWHERWKWKHULJKWKDQGYDOXHDQGWKHOHIWKDQG
WDUJHW
6ZLWFKWUDQVLVWRUSURFHVVLQJ
7KHHYHQWGULYHQVLPXODWLRQDOJRULWKPGHVFULEHGLQGHSHQGVRQXQLGLUHFWLRQDOVLJQDOÁRZDQGFDQSURFHVVHDFK
HYHQWLQGHSHQGHQWO\7KHLQSXWVDUHUHDGWKHUHVXOWLVFRPSXWHGDQGWKHXSGDWHLVVFKHGXOHG
7KH9HULORJ+'/SURYLGHVVZLWFKOHYHOPRGHOLQJLQDGGLWLRQWREHKDYLRUDODQGJDWHOHYHOPRGHOLQJ6ZLWFKHVSURYLGH
ELGLUHFWLRQDOVLJQDOÁRZDQGUHTXLUHFRRUGLQDWHGSURFHVVLQJRIQRGHVFRQQHFWHGE\VZLWFKHV
7KH9HULORJ+'/VRXUFHHOHPHQWVWKDWPRGHOVZLWFKHVDUHYDULRXVIRUPVRIWUDQVLVWRUVFDOOHGWUDQWUDQLIWUDQLI
UWUDQUWUDQLIDQGUWUDQLI
6ZLWFKSURFHVVLQJVKDOOFRQVLGHUDOOWKHGHYLFHVLQDELGLUHFWLRQDOVZLWFKFRQQHFWHGQHWEHIRUHLWFDQGHWHUPLQHWKH
DSSURSULDWHYDOXHIRUDQ\QRGHRQWKHQHWEHFDXVHWKHLQSXWVDQGRXWSXWVLQWHUDFW$VLPXODWRUFDQGRWKLVXVLQJD
UHOD[DWLRQWHFKQLTXH7KHVLPXODWRUFDQSURFHVVWUDQDWDQ\WLPH,WFDQSURFHVVDVXEVHWRIWUDQFRQQHFWHGHYHQWVDWD
SDUWLFXODUWLPHLQWHUPLQJOHGZLWKWKHH[HFXWLRQRIRWKHUDFWLYHHYHQWV
)XUWKHUUHÀQHPHQWLVUHTXLUHGZKHQVRPHWUDQVLVWRUVKDYHJDWHYDOXH[$FRQFHSWXDOO\VLPSOHWHFKQLTXHLVWRVROYH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
WKHQHWZRUNUHSHDWHGO\ZLWKWKHVHWUDQVLVWRUVVHWWRDOOSRVVLEOHFRPELQDWLRQVRIIXOO\FRQGXFWLQJDQGQRQFRQGXFWLQJ
WUDQVLVWRUV$Q\QRGHWKDWKDVDXQLTXHORJLFOHYHOLQDOOFDVHVKDVVWHDG\VWDWHUHVSRQVHHTXDOWRWKLVOHYHO$OORWKHU
QRGHVKDYHVWHDG\VWDWHUHVSRQVH[
3RUWFRQQHFWLRQV
3RUWV FRQQHFW SURFHVVHV WKURXJK LPSOLFLW FRQWLQXRXV DVVLJQPHQW VWDWHPHQWV RU LPSOLFLW ELGLUHFWLRQDO FRQQHFWLRQV
%LGLUHFWLRQDOFRQQHFWLRQVDUHDQDORJRXVWRDQDOZD\VHQDEOHGWUDQFRQQHFWLRQEHWZHHQWKHWZRQHWVEXWZLWKRXWDQ\
VWUHQJWKUHGXFWLRQ3RUWFRQQHFWLRQUXOHVUHTXLUHWKDWDYDOXHUHFHLYHUEHDQHWRUDVWUXFWXUDOQHWH[SUHVVLRQ
3RUWVFDQDOZD\VEHUHSUHVHQWHGDVGHFODUHGREMHFWVFRQQHFWHGDVIROORZV
³ ,IDQLQSXWSRUWWKHQDFRQWLQXRXVDVVLJQPHQWIURPDQRXWVLGHH[SUHVVLRQWRDORFDOLQSXWQHW
³ ,IDQRXWSXWSRUWWKHQDFRQWLQXRXVDVVLJQPHQWIURPDORFDORXWSXWH[SUHVVLRQWRDQRXWVLGHQHW
³ ,IDQLQRXWWKHQDQRQVWUHQJWKUHGXFLQJWUDQVLVWRUFRQQHFWLQJWKHORFDOQHWWRDQRXWVLGHQHW
3RUWFRQQHFWLRQUXOHVDUHJLYHQLQ0RGXOHVFDQKDYHWKHIROORZLQJGHFODUDWLRQ
PRGXOHIRRDSES
ZKLFKPDNHVDDQGEWKHH[WHUQDOQDPHVRIWKHSRUWVDQGSWKHLQWHUQDOQDPHRIWKHSRUW7KLVPHDQVDEDQGSDUH
FRQQHFWHGELGLUHFWLRQDOO\KHQFHWKH\DOZD\VKDYHWKHVDPHYDOXHDWWKHHQGRIWKHWLPHVWHS
)XQFWLRQVDQGWDVNV
7DVNDQGIXQFWLRQSDUDPHWHUSDVVLQJLVE\YDOXHDQGLWFRSLHVLQRQLQYRFDWLRQDQGFRSLHVRXWRQUHWXUQ7KHFRS\RXW
RQWKHUHWXUQIXQFWLRQEHKDYHVLQWKHVDPHPDQQHUDVGRHVDQ\EORFNLQJDVVLJQPHQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
$VVLJQPHQWV
7KHDVVLJQPHQWLVWKHEDVLFPHFKDQLVPIRUSODFLQJYDOXHVLQWRQHWVDQGUHJLVWHUV7KHUHDUHWZREDVLFIRUPVRIDVVLJQ
PHQWV
³ 7KHFRQWLQXRXVDVVLJQPHQWZKLFKDVVLJQVYDOXHVWRQHWV
³ 7KHSURFHGXUDODVVLJQPHQWZKLFKDVVLJQVYDOXHVWRUHJLVWHUV
7KHUHDUHWZRDGGLWLRQDOIRUPVRIDVVLJQPHQWVFDOOHGSURFHGXUDOFRQWLQXRXVDVVLJQPHQWVGHVFULEHGLQ
$QDVVLJQPHQWFRQVLVWVRIWZRSDUWVDOHIWKDQGVLGHDQGDULJKWKDQGVLGHVHSDUDWHGE\WKHHTXDOV FKDUDFWHU7KH
ULJKWKDQGVLGHFDQEHDQ\H[SUHVVLRQWKDWHYDOXDWHVWRDYDOXH7KHOHIWKDQGVLGHLQGLFDWHVWKHYDULDEOHWRZKLFKWKH
ULJKWKDQGVLGHYDOXHLVWREHDVVLJQHG7KHOHIWKDQGVLGHFDQWDNHRQHRIWKHIRUPVJLYHQLQ7DEOHGHSHQGLQJRQ
ZKHWKHUWKHDVVLJQPHQWLVDFRQWLQXRXVDVVLJQPHQWRUDSURFHGXUDODVVLJQPHQW
7DEOH³/HJDOOHIWKDQGVLGHIRUPVLQDVVLJQPHQWVWDWHPHQWV
6WDWHPHQWW\SH
/HIWKDQGVLGH/+6
&RQWLQXRXVDVVLJQPHQW
1HWYHFWRURUVFDODU
&RQVWDQWELWVHOHFWRIDYHFWRUQHW
&RQVWDQWSDUWVHOHFWRIDYHFWRUQHW
&RQFDWHQDWLRQRIDQ\RIWKHDERYHWKUHH/+6
3URFHGXUDODVVLJQPHQW
5HJLVWHUYHFWRURUVFDODU
%LWVHOHFWRIDYHFWRUUHJLVWHU
&RQVWDQWSDUWVHOHFWRIDYHFWRUUHJLVWHU
0HPRU\ZRUG
&RQFDWHQDWLRQRIDQ\RIWKHDERYHIRXU/+6
&RQWLQXRXVDVVLJQPHQWV
&RQWLQXRXVDVVLJQPHQWVVKDOOGULYHYDOXHVRQWRQHWVERWKYHFWRUDQGVFDODU7KLVDVVLJQPHQWVKDOORFFXUZKHQHYHU
WKHYDOXHRIWKHULJKWKDQGVLGHFKDQJHV&RQWLQXRXVDVVLJQPHQWVSURYLGHDZD\WRPRGHOFRPELQDWLRQDOORJLFZLWK
RXWVSHFLI\LQJDQLQWHUFRQQHFWLRQRIJDWHV,QVWHDGWKHPRGHOVSHFLÀHVWKHORJLFDOH[SUHVVLRQWKDWGULYHVWKHQHW
7KHV\QWD[IRUFRQWLQXRXVDVVLJQPHQWVLVJLYHQLQ6\QWD[
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
QHWBGHFODUDWLRQ QHWBW\SH>YHFWRUHG_VFDODUHG@>UDQJH@>GHOD\@OLVWBRIBQHWBLGHQWLILHUV
_WULUHJ>YHFWRUHG_VFDODUHG@>FKDUJHBVWUHQJWK@>UDQJH@>GHOD\@
OLVWBRIBQHWBLGHQWLILHUV
_QHWBW\SH>YHFWRUHG_VFDODUHG@>GULYHBVWUHQJWK@>UDQJH@>GHOD\@
OLVWBRIBQHWBDVVLJQPHQWV
FRQWLQXRXVBDVVLJQPHQW
DVVLJQ>GULYHBVWUHQJWK@>GHOD\@OLVWBRIBQHWBDVVLJQPHQWV
OLVWBRIBQHWBDVVLJQPHQWV QHWBDVVLJQPHQW^QHWBDVVLJQPHQW`
QHWBDVVLJQPHQW QHWBOYDOXH H[SUHVVLRQ
6\QWD[³6\QWD[IRUFRQWLQXRXVDVVLJQPHQW
7KHQHWGHFODUDWLRQDVVLJQPHQW
7KHÀUVWWZRDOWHUQDWLYHVLQWKHQHWGHFODUDWLRQDUHGLVFXVVHGLQ6HFWLRQVHH7KHWKLUGDOWHUQDWLYHWKHQHWGHF
ODUDWLRQDVVLJQPHQWDOORZVDFRQWLQXRXVDVVLJQPHQWWREHSODFHGRQDQHWLQWKHVDPHVWDWHPHQWWKDWGHFODUHVWKHQHW
([DPSOH
7KHIROORZLQJLVDQH[DPSOHRIWKHQHWGHFODUDWLRQIRUPRIDFRQWLQXRXVDVVLJQPHQW
ZLUHVWURQJSXOOP\QHW HQDEOH
127(³%HFDXVHDQHWFDQEHGHFODUHGRQO\RQFHRQO\RQHQHWGHFODUDWLRQDVVLJQPHQWFDQEHPDGHIRUDSDUWLFXODUQHW7KLVFRQ
WUDVWVZLWKWKHFRQWLQXRXVDVVLJQPHQWVWDWHPHQWRQHQHWFDQUHFHLYHPXOWLSOHDVVLJQPHQWVRIWKHFRQWLQXRXVDVVLJQPHQWIRUP
7KHFRQWLQXRXVDVVLJQPHQWVWDWHPHQW
7KHFRQWLQXRXVDVVLJQPHQWVWDWHPHQWVKDOOSODFHDFRQWLQXRXVDVVLJQPHQWRQDQHWWKDWKDVEHHQSUHYLRXVO\GHFODUHG
HLWKHUH[SOLFLWO\E\GHFODUDWLRQRULPSOLFLWO\E\XVLQJLWVQDPHLQWKHWHUPLQDOOLVWRIDJDWHXVHUGHÀQHGSULPLWLYHRU
PRGXOHLQVWDQFHVHH
$VVLJQPHQWVRQQHWVVKDOOEHFRQWLQXRXVDQGDXWRPDWLF7KLVPHDQVWKDWZKHQHYHUDQRSHUDQGLQWKHULJKWKDQGVLGH
H[SUHVVLRQFKDQJHVYDOXHWKHZKROHULJKWKDQGVLGHVKDOOEHHYDOXDWHGDQGDVVLJQHGWRWKHOHIWKDQGVLGH
([DPSOHV
([DPSOH³7KHIROORZLQJLVDQH[DPSOHRIDFRQWLQXRXVDVVLJQPHQWWRDQHWWKDWKDVEHHQSUHYLRXVO\GHFODUHG
ZLUHP\QHW
DVVLJQVWURQJSXOOP\QHW HQDEOH
([DPSOH³7KHIROORZLQJLVDQH[DPSOHRIWKHXVHRIDFRQWLQXRXVDVVLJQPHQWWRPRGHODELWDGGHUZLWKFDUU\7KH
DVVLJQPHQWFRXOGQRWEHVSHFLÀHGGLUHFWO\LQWKHGHFODUDWLRQRIWKHQHWVEHFDXVHLWUHTXLUHVDFRQFDWHQDWLRQRQWKHOHIW
KDQGVLGH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHDGGHUVXPBRXWFDUU\BRXWFDUU\BLQLQDLQE
RXWSXW>@VXPBRXW
RXWSXWFDUU\BRXW
LQSXW>@LQDLQE
LQSXWFDUU\BLQ
ZLUHFDUU\BRXWFDUU\BLQ
ZLUH>@VXPBRXWLQDLQE
DVVLJQ^FDUU\BRXWVXPBRXW` LQDLQEFDUU\BLQ
HQGPRGXOH
([DPSOH³7KHIROORZLQJH[DPSOHGHVFULEHVDPRGXOHZLWKRQHELWRXWSXWEXV,WVHOHFWVEHWZHHQRQHRIIRXU
LQSXWEXVVHVDQGFRQQHFWVWKHVHOHFWHGEXVWRWKHRXWSXWEXV
PRGXOHVHOHFWBEXVEXVRXWEXVEXVEXVEXVHQDEOHV
SDUDPHWHUQ SDUDPHWHU=HH ·E]
RXWSXW>Q@EXVRXW
LQSXW>Q@EXVEXVEXVEXV
LQSXWHQDEOH
LQSXW>@V
WUL>Q@GDWD
QHWGHFODUDWLRQ
QHWGHFODUDWLRQZLWKFRQWLQXRXVDVVLJQPHQW
WUL>Q@EXVRXW HQDEOH"GDWD=HH
DVVLJQPHQWVWDWHPHQWZLWKIRXUFRQWLQXRXVDVVLJQPHQWV
DVVLJQ
GDWD V "EXV=HH
GDWD V "EXV=HH
GDWD V "EXV=HH
GDWD V "EXV=HH
HQGPRGXOH
7KHIROORZLQJVHTXHQFHRIHYHQWVLVH[SHULHQFHGGXULQJVLPXODWLRQRIWKLVH[DPSOH
D
7KHYDOXHRIVDEXVVHOHFWRULQSXWYDULDEOHLVFKHFNHGLQWKHDVVLJQVWDWHPHQW%DVHGRQWKHYDOXHRIVWKH
QHWGDWDUHFHLYHVWKHGDWDIURPRQHRIWKHIRXULQSXWEXVHV
E
7KHVHWWLQJRIGDWDQHWWULJJHUVWKHFRQWLQXRXVDVVLJQPHQWLQWKHQHWGHFODUDWLRQIRUEXVRXW,IHQDEOHLV
VHW WKH FRQWHQWV RI GDWD DUH DVVLJQHG WR EXVRXW LI HQDEOH LV WKH FRQWHQWV RI =HH DUH DVVLJQHG WR
EXVRXW
'HOD\V
$GHOD\JLYHQWRDFRQWLQXRXVDVVLJQPHQWVKDOOVSHFLI\WKHWLPHGXUDWLRQEHWZHHQDULJKWKDQGVLGHRSHUDQGYDOXH
FKDQJHDQGWKHDVVLJQPHQWPDGHWRWKHOHIWKDQGVLGH,IWKHOHIWKDQGVLGHUHIHUHQFHVDVFDODUQHWWKHQWKHGHOD\VKDOO
EHWUHDWHGLQWKHVDPHZD\DVIRUJDWHGHOD\V³WKDWLVGLIIHUHQWGHOD\VFDQEHJLYHQIRUWKHRXWSXWULVLQJIDOOLQJDQG
FKDQJLQJWRKLJKLPSHGDQFHVHH6HFWLRQ
,IWKHOHIWKDQGVLGHUHIHUHQFHVDYHFWRUQHWWKHQXSWRWKUHHGHOD\VFDQEHDSSOLHG7KHIROORZLQJUXOHVGHWHUPLQH
ZKLFKGHOD\FRQWUROVWKHDVVLJQPHQW
³ ,IWKHULJKWKDQGVLGHPDNHVDWUDQVLWLRQIURPQRQ]HURWR]HURWKHQWKHIDOOLQJGHOD\VKDOOEHXVHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
³ ,IWKHULJKWKDQGVLGHPDNHVDWUDQVLWLRQWR]WKHQWKHWXUQRIIGHOD\VKDOOEHXVHG
³ )RUDOORWKHUFDVHVWKHULVLQJGHOD\VKDOOEHXVHG
6SHFLI\LQJWKHGHOD\LQDFRQWLQXRXVDVVLJQPHQWWKDWLVSDUWRIWKHQHWGHFODUDWLRQVKDOOEHWUHDWHGGLIIHUHQWO\IURP
VSHFLI\LQJDQHWGHOD\DQGWKHQPDNLQJDFRQWLQXRXVDVVLJQPHQWWRWKHQHW$GHOD\YDOXHFDQEHDSSOLHGWRDQHWLQD
QHWGHFODUDWLRQDVLQWKHIROORZLQJH[DPSOH
ZLUHZLUH$
7KLVV\QWD[FDOOHGDQHWGHOD\PHDQVWKDWDQ\YDOXHFKDQJHWKDWLVWREHDSSOLHGWRZLUH$E\VRPHRWKHUVWDWHPHQW
VKDOOEHGHOD\HGIRUWHQWLPHXQLWVEHIRUHLWWDNHVHIIHFW:KHQWKHUHLVDFRQWLQXRXVDVVLJQPHQWLQDGHFODUDWLRQWKH
GHOD\LVSDUWRIWKHFRQWLQXRXVDVVLJQPHQWDQGLVQRWDQHWGHOD\7KXVLWVKDOOQRWEHDGGHGWRWKHGHOD\RIRWKHUGULY
HUVRQWKHQHW)XUWKHUPRUHLIWKHDVVLJQPHQWLVWRDYHFWRUQHWWKHQWKHULVLQJDQGIDOOLQJGHOD\VVKDOOQRWEHDSSOLHG
WRWKHLQGLYLGXDOELWVLIWKHDVVLJQPHQWLVLQFOXGHGLQWKHGHFODUDWLRQ
,QVLWXDWLRQVZKHUHDULJKWKDQGVLGHRSHUDQGFKDQJHVEHIRUHDSUHYLRXVFKDQJHKDVKDGWLPHWRSURSDJDWHWRWKHOHIW
KDQGVLGHWKHQWKHODWHVWYDOXHFKDQJHVKDOOEHWKHRQO\RQHWREHDSSOLHG7KDWLVRQO\RQHDVVLJQPHQWVKDOORFFXU
6WUHQJWK
7KHGULYLQJVWUHQJWKRIDFRQWLQXRXVDVVLJQPHQWFDQEHVSHFLÀHGE\WKHXVHU7KLVDSSOLHVRQO\WRDVVLJQPHQWVWRVFD
ODUQHWVRIWKHIROORZLQJW\SHV
ZLUH
ZDQG
ZRU
WUL
WULDQG
WULRU
WULUHJ
WUL
WUL
&RQWLQXRXVDVVLJQPHQWVGULYLQJVWUHQJWKVFDQEHVSHFLÀHGLQHLWKHUDQHWGHFODUDWLRQRULQDVWDQGDORQHDVVLJQPHQW
XVLQJWKH DVVLJQNH\ZRUG7KHVWUHQJWKVSHFLÀFDWLRQLISURYLGHGVKDOOLPPHGLDWHO\IROORZWKHNH\ZRUGHLWKHUWKH
NH\ZRUGIRUWKHQHWW\SHRUDVVLJQDQGSUHFHGHDQ\GHOD\VSHFLÀHG:KHQHYHUWKHFRQWLQXRXVDVVLJQPHQWGULYHVWKH
QHWWKHVWUHQJWKRIWKHYDOXHVKDOOEHVLPXODWHGDVVSHFLÀHG
$GULYHVWUHQJWKVSHFLÀFDWLRQVKDOOFRQWDLQRQHVWUHQJWKYDOXHWKDWDSSOLHVZKHQWKHYDOXHEHLQJDVVLJQHGWRWKHQHWLV
DQGDVHFRQGVWUHQJWKYDOXHWKDWDSSOLHVZKHQWKHDVVLJQHGYDOXHLV7KHIROORZLQJNH\ZRUGVVKDOOVSHFLI\WKH
VWUHQJWKYDOXHIRUDQDVVLJQPHQWRI
VXSSO\
VWURQJ
SXOO
ZHDN
KLJK]
7KHIROORZLQJNH\ZRUGVVKDOOVSHFLI\WKHVWUHQJWKYDOXHIRUDQDVVLJQPHQWRI
VXSSO\
VWURQJ
SXOO
ZHDN
KLJK]
7KHRUGHURIWKHWZRVWUHQJWKVSHFLÀFDWLRQVVKDOOEHDUELWUDU\7KHIROORZLQJWZRUXOHVVKDOOFRQVWUDLQWKHXVHRIGULYH
VWUHQJWKVSHFLÀFDWLRQV
³ 7KHVWUHQJWKVSHFLÀFDWLRQVKLJK]KLJK]DQGKLJK]KLJK]VKDOOEHWUHDWHGDVLOOHJDOFRQVWUXFWV
³ ,IGULYHVWUHQJWKLVQRWVSHFLÀHGLWVKDOOGHIDXOWWRVWURQJVWURQJ
3URFHGXUDODVVLJQPHQWV
7KHSULPDU\GLVFXVVLRQRISURFHGXUDODVVLJQPHQWVLVLQ+RZHYHUDGHVFULSWLRQRIWKHEDVLFLGHDVLQWKLVFODXVH
KLJKOLJKWVWKHGLIIHUHQFHVEHWZHHQFRQWLQXRXVDVVLJQPHQWVDQGSURFHGXUDODVVLJQPHQWV
$VVWDWHGLQFRQWLQXRXVDVVLJQPHQWVGULYHQHWVLQDPDQQHUVLPLODUWRWKHZD\JDWHVGULYHQHWV7KHH[SUHVVLRQRQ
WKHULJKWKDQGVLGHFDQEHWKRXJKWRIDVDFRPELQDWRULDOFLUFXLWWKDWGULYHVWKHQHWFRQWLQXRXVO\,QFRQWUDVWSURFH
6HFWLRQ
,(((
6WG
GXUDODVVLJQPHQWVSXWYDOXHVLQUHJLVWHUV7KHDVVLJQPHQWGRHVQRWKDYHGXUDWLRQLQVWHDGWKHUHJLVWHUKROGVWKHYDOXH
RIWKHDVVLJQPHQWXQWLOWKHQH[WSURFHGXUDODVVLJQPHQWWRWKDWUHJLVWHU
3URFHGXUDODVVLJQPHQWVRFFXUZLWKLQSURFHGXUHVVXFKDVDOZD\VLQLWLDOVHH6HFWLRQWDVNDQGIXQFWLRQVHH6HF
WLRQDQGFDQEHWKRXJKWRIDV´WULJJHUHGµDVVLJQPHQWV7KHWULJJHURFFXUVZKHQWKHÁRZRIH[HFXWLRQLQWKHVLPX
ODWLRQ UHDFKHV DQ DVVLJQPHQW ZLWKLQ D SURFHGXUH 5HDFKLQJ WKH DVVLJQPHQW FDQ EH FRQWUROOHG E\ FRQGLWLRQDO
VWDWHPHQWV(YHQWFRQWUROVGHOD\FRQWUROVLIVWDWHPHQWVFDVHVWDWHPHQWVDQGORRSLQJVWDWHPHQWVFDQDOOEHXVHGWR
FRQWUROZKHWKHUDVVLJQPHQWVDUHHYDOXDWHG6HFWLRQJLYHVGHWDLOVDQGH[DPSOHV
6HFWLRQ
,(((
6WG
6HFWLRQ
*DWHDQGVZLWFKOHYHOPRGHOLQJ
7KLV VHFWLRQ GHVFULEHV WKH V\QWD[ DQG VHPDQWLFV RI WKHVH EXLOWLQ SULPLWLYHV DQG KRZ D KDUGZDUH GHVLJQ FDQ EH
GHVFULEHGXVLQJWKHVHSULPLWLYHV
7KHUHDUHORJLFJDWHVDQGVZLWFKHVSUHGHÀQHGLQWKH9HULORJ+'/WRSURYLGHWKHJDWHDQGVZLWFKOHYHOPRGHOLQJ
IDFLOLW\0RGHOLQJZLWKORJLFJDWHVDQGVZLWFKHVKDVWKHIROORZLQJDGYDQWDJHV
³ *DWHVSURYLGHDPXFKFORVHURQHWRRQHPDSSLQJEHWZHHQWKHDFWXDOFLUFXLWDQGWKHPRGHO
³ 7KHUHLVQRFRQWLQXRXVDVVLJQPHQWHTXLYDOHQWWRWKHELGLUHFWLRQDOWUDQVIHUJDWH
*DWHDQGVZLWFKGHFODUDWLRQV\QWD[
6\QWD[VKRZVWKHJDWHDQGVZLWFKGHFODUDWLRQV\QWD[
$JDWHRUDVZLWFKLQVWDQFHGHFODUDWLRQVKDOOKDYHWKHIROORZLQJVSHFLÀFDWLRQV
³
³
³
³
³
³
7KHNH\ZRUGWKDWQDPHVWKHW\SHRIJDWHRUVZLWFKSULPLWLYH
$QRSWLRQDOGULYHVWUHQJWK
$QRSWLRQDOSURSDJDWLRQGHOD\
$QRSWLRQDOLGHQWLÀHUWKDWQDPHVHDFKJDWHRUVZLWFKLQVWDQFH
$QRSWLRQDOUDQJHIRUDUUD\RILQVWDQFHV
7KHWHUPLQDOFRQQHFWLRQOLVW
0XOWLSOHLQVWDQFHVRIWKHRQHW\SHRIJDWHRUVZLWFKSULPLWLYHFDQEHGHFODUHGDVDFRPPDVHSDUDWHGOLVW$OOVXFK
LQVWDQFHVVKDOOKDYHWKHVDPHGULYHVWUHQJWKDQGGHOD\VSHFLÀFDWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
JDWHBLQVWDQWLDWLRQ QBLQSXWBJDWHW\SH>GULYHBVWUHQJWK@>GHOD\@
QBLQSXWBJDWHBLQVWDQFH^QBLQSXWBJDWHBLQVWDQFH`
_QBRXWSXWBJDWHW\SH>GULYHBVWUHQJWK@>GHOD\@
QBRXWSXWBJDWHBLQVWDQFH^QBRXWSXWBJDWHBLQVWDQFH`
_HQDEOHBJDWHW\SH>GULYHBVWUHQJWK@>GHOD\@HQDEOHBJDWHBLQVWDQFH^
HQDEOHBJDWHBLQVWDQFH`
_PRVBVZLWFKW\SH>GHOD\@PRVBVZLWFKBLQVWDQFH^PRVBVZLWFKBLQVWDQFH`
_SDVVBVZLWFKW\SHSDVVBVZLWFKBLQVWDQFH^SDVVBVZLWFKBLQVWDQFH`
_SDVVBHQBVZLWFKW\SH>GHOD\@SDVVBHQBVZLWFKBLQVWDQFH^SDVVBHQBVZLWFKBLQVWDQFH
`
_FPRVBVZLWFKW\SH>GHOD\@FPRVBVZLWFKBLQVWDQFH^FPRVBVZLWFKBLQVWDQFH`
_SXOOXS>SXOOXSBVWUHQJWK@SXOOBJDWHBLQVWDQFH^SXOOBJDWHBLQVWDQFH`
_SXOOGRZQ>SXOOGRZQBVWUHQJWK@SXOOBJDWHBLQVWDQFH^SXOOBJDWHBLQVWDQFH`
QBLQSXWBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDO^LQSXWBWHUPLQDO`
QBRXWSXWBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDO^RXWSXWBWHUPLQDO`LQSXWBWHUPLQDO
HQDEOHBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDOHQDEOHBWHUPLQDO
PRVBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDOHQDEOHBWHUPLQDO
SDVVBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@LQRXWBWHUPLQDOLQRXWBWHUPLQDO
SDVVBHQDEOHBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@LQRXWBWHUPLQDOLQRXWBWHUPLQDOHQDEOHBWHUPLQDO
FPRVBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDO
QFRQWUROBWHUPLQDOSFRQWUROBWHUPLQDO
SXOOBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDO
QDPHBRIBJDWHBLQVWDQFH JDWHBLQVWDQFHBLGHQWLILHU>UDQJH@
GHOD\ GHOD\BYDOXH_GHOD\BYDOXH>GHOD\BYDOXH@
SXOOXSBVWUHQJWK
VWUHQJWKVWUHQJWK_VWUHQJWKVWUHQJWK_VWUHQJWK
SXOOGRZQBVWUHQJWK
VWUHQJWKVWUHQJWK_VWUHQJWKVWUHQJWK_VWUHQJWK
LQSXWBWHUPLQDO VFDODUBH[SUHVVLRQ
HQDEOHBWHUPLQDO VFDODUBH[SUHVVLRQ
QFRQWUROBWHUPLQDO VFDODUBH[SUHVVLRQ
SFRQWUROBWHUPLQDO VFDODUBH[SUHVVLRQ
RXWSXWBWHUPLQDO WHUPLQDOBLGHQWLILHU_WHUPLQDOBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
LQRXWBWHUPLQDO WHUPLQDOBLGHQWLILHU_WHUPLQDOBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
QBLQSXWBJDWHW\SH DQG_QDQG_RU_QRU_[RU_[QRU
QBRXWSXWBJDWHW\SH EXI_QRW
HQDEOHBJDWHW\SH EXILI_EXILI_QRWLI_QRWLI
PRVBVZLWFKW\SH QPRV_SPRV_UQPRV_USPRV
SDVVBVZLWFKW\SH WUDQ_UWUDQ
SDVVBHQBVZLWFKW\SH WUDQLI_WUDQLI_UWUDQLI_UWUDQLI
6\QWD[³6\QWD[IRUJDWHLQVWDQWLDWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHJDWHW\SHVSHFLÀFDWLRQ
$JDWHRUVZLWFKLQVWDQFHGHFODUDWLRQVKDOOEHJLQZLWKWKHNH\ZRUGWKDWVSHFLÀHVWKHJDWHRUVZLWFKSULPLWLYHEHLQJ
XVHGE\WKHLQVWDQFHVWKDWIROORZLQWKHGHFODUDWLRQ7DEOHOLVWVWKHNH\ZRUGVWKDWVKDOOEHJLQDJDWHRUDVZLWFK
LQVWDQFHGHFODUDWLRQ
7DEOH³%XLOWLQJDWHVDQGVZLWFKHV
QBLQSXWJDWHV
QBRXWSXWJDWHV
WULVWDWHJDWHV
SXOOJDWHV
026VZLWFKHV
ELGLUHFWLRQDO
VZLWFKHV
DQG
EXI
EXÀI
SXOOGRZQ
FPRV
UWUDQ
QDQG
QRW
EXÀI
SXOOXS
QPRV
UWUDQLI
QRU
QRWLI
SPRV
UWUDQLI
RU
QRWLI
UFPRV
WUDQ
[QRU
UQPRV
WUDQLI
[RU
USPRV
WUDQLI
([SODQDWLRQVRIWKHEXLOWLQJDWHVDQGVZLWFKHVVKRZQLQ7DEOHEHJLQLQ
7KHGULYHVWUHQJWKVSHFLÀFDWLRQ
$QRSWLRQDOGULYHVWUHQJWKVSHFLÀFDWLRQVKDOOVSHFLI\WKHVWUHQJWKRIWKHORJLFYDOXHVRQWKHRXWSXWWHUPLQDOVRIWKH
JDWHLQVWDQFH2QO\WKHLQVWDQFHVRIWKHJDWHSULPLWLYHVVKRZQLQ7DEOHFDQKDYHWKHGULYHVWUHQJWKVSHFLÀFDWLRQ
7DEOH³9DOLGJDWHW\SHVIRUVWUHQJWKVSHFLÀFDWLRQV
DQG
QDQG
EXI
QRW
SXOOGRZQ
RU
QRU
EXÀI
QRWLI
SXOOXS
[RU
[QRU
EXÀI
QRWLI
7KHGULYHVWUHQJWKVSHFLÀFDWLRQIRUDJDWHLQVWDQFHZLWKWKHH[FHSWLRQRISXOOXSDQGSXOOGRZQVKDOOKDYHDVWUHQJWK
VSHFLÀFDWLRQ DQG D VWUHQJWK VSHFLÀFDWLRQ7KH VWUHQJWK VSHFLÀFDWLRQ VKDOO VSHFLI\ WKH VWUHQJWK RI VLJQDOV ZLWK D
ORJLFYDOXHDQGWKHVWUHQJWKVSHFLÀFDWLRQVKDOOVSHFLI\WKHVWUHQJWKRIVLJQDOVZLWKDORJLFYDOXH7KHVWUHQJWK
VSHFLÀFDWLRQVKDOOIROORZWKHJDWHW\SHNH\ZRUGDQGSUHFHGHDQ\GHOD\VSHFLÀFDWLRQ7KHVWUHQJWKVSHFLÀFDWLRQFDQ
SUHFHGH RU IROORZ WKH VWUHQJWK VSHFLÀFDWLRQ 7KH VWUHQJWK DQG VWUHQJWK VSHFLÀFDWLRQV VKDOO EH VHSDUDWHG E\ D
FRPPDDQGHQFORVHGZLWKLQDSDLURISDUHQWKHVHV
7KHSXOOXSJDWHFDQKDYHRQO\VWUHQJWKVSHFLÀFDWLRQVWUHQJWKVSHFLÀFDWLRQVKDOOEHRSWLRQDO7KHSXOOGRZQJDWH
FDQKDYHRQO\VWUHQJWKVSHFLÀFDWLRQVWUHQJWKVSHFLÀFDWLRQVKDOOEHRSWLRQDO
7KHVWUHQJWKVSHFLÀFDWLRQVKDOOEHRQHRIWKHIROORZLQJNH\ZRUGV
VXSSO\ VWURQJ
SXOO
ZHDN
7KHVWUHQJWKVSHFLÀFDWLRQVKDOOEHRQHRIWKHIROORZLQJNH\ZRUGV
VXSSO\
VWURQJ SXOO
ZHDN
6SHFLI\LQJKLJK]DVVWUHQJWKVKDOOFDXVHWKHJDWHRUVZLWFKWRRXWSXWDORJLFYDOXH]LQSODFHRID6SHFLI\LQJ
KLJK]VKDOOFDXVHWKHJDWHWRRXWSXWDORJLFYDOXH]LQSODFHRID7KHVWUHQJWKVSHFLÀFDWLRQVKLJK]KLJK]DQG
KLJK]KLJK]VKDOOEHFRQVLGHUHGLQYDOLG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
,QWKHDEVHQFHRIDVWUHQJWKVSHFLÀFDWLRQWKHLQVWDQFHVVKDOOKDYHWKHGHIDXOWVWUHQJWKVVWURQJDQGVWURQJ
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVDGULYHVWUHQJWKVSHFLÀFDWLRQLQDGHFODUDWLRQRIDQRSHQFROOHFWRUQRUJDWH
QRUKLJK]VWURQJQRXWLQLQ
,QWKLVH[DPSOHWKHQRUJDWHRXWSXWVD]LQSODFHRID
/RJLFVWUHQJWKPRGHOLQJLVGLVFXVVHGLQPRUHGHWDLOLQWKURXJK
7KHGHOD\VSHFLÀFDWLRQ
$QRSWLRQDOGHOD\VSHFLÀFDWLRQVKDOOVSHFLI\WKHSURSDJDWLRQGHOD\WKURXJKWKHJDWHVDQGVZLWFKHVLQDGHFODUDWLRQ
*DWHVDQGVZLWFKHVLQGHFODUDWLRQVZLWKQRGHOD\VSHFLÀFDWLRQVKDOOKDYHQRSURSDJDWLRQGHOD\$GHOD\VSHFLÀFDWLRQ
FDQFRQWDLQXSWRWKUHHGHOD\YDOXHVGHSHQGLQJRQWKHJDWHW\SH7KHSXOOXSDQGSXOOGRZQLQVWDQFHGHFODUDWLRQV
VKDOOQRWLQFOXGHGHOD\VSHFLÀFDWLRQV'HOD\VDUHGLVFXVVHGLQPRUHGHWDLOLQ
7KHSULPLWLYHLQVWDQFHLGHQWLÀHU
$QRSWLRQDOQDPHFDQEHJLYHQWRDJDWHRUVZLWFKLQVWDQFH,IPXOWLSOHLQVWDQFHVDUHGHFODUHGDVDQDUUD\RILQVWDQFHV
DQLGHQWLÀHUVKDOOEHXVHGWRQDPHWKHLQVWDQFHV
7KHUDQJHVSHFLÀFDWLRQ
7KHUHDUHPDQ\VLWXDWLRQVZKHQUHSHWLWLYHLQVWDQFHVDUHUHTXLUHG7KHVHLQVWDQFHVVKDOOGLIIHUIURPHDFKRWKHURQO\E\
WKHLQGH[RIWKHYHFWRUWRZKLFKWKH\DUHFRQQHFWHG
,QRUGHUWRVSHFLI\DQDUUD\RILQVWDQFHVWKHLQVWDQFHQDPHVKDOOEHIROORZHGE\WKHUDQJHVSHFLÀFDWLRQ7KHUDQJH
VKDOO EH VSHFLÀHG E\ WZR FRQVWDQW H[SUHVVLRQV OHIWKDQG LQGH[ OKL DQG ULJKWKDQG LQGH[ UKL VHSDUDWHG E\ D
FRORQDQGHQFORVHGZLWKLQDSDLURIVTXDUHEUDFNHWV$>OKLUKL@UDQJHVSHFLÀFDWLRQVKDOOUHSUHVHQWDQDUUD\RI
DEVOKLUKL LQVWDQFHV 1HLWKHU RI WKH WZR FRQVWDQW H[SUHVVLRQV DUH UHTXLUHG WR EH ]HUR DQG OKL LV QRW
UHTXLUHGWREHODUJHUWKDQUKL,IERWKFRQVWDQWH[SUHVVLRQVDUHHTXDORQO\RQHLQVWDQFHVKDOOEHJHQHUDWHG
$QDUUD\RILQVWDQFHVVKDOOKDYHDFRQWLQXRXVUDQJH2QHLQVWDQFHLGHQWLÀHUVKDOOEHDVVRFLDWHGZLWKRQO\RQHUDQJHWR
GHFODUHDQDUUD\RILQVWDQFHV
7KHUDQJHVSHFLÀFDWLRQVKDOOEHRSWLRQDO,IQRUDQJHVSHFLÀFDWLRQLVJLYHQDVLQJOHLQVWDQFHVKDOOEHFUHDWHG
([DPSOH
$GHFODUDWLRQVKRZQEHORZLVLOOHJDO
QDQGWBQDQG>@WBQDQG>@
,WFRXOGEHGHFODUHGFRUUHFWO\DVRQHDUUD\RIHLJKWLQVWDQFHVRUWZRDUUD\VZLWKXQLTXHQDPHVRIIRXUHOHPHQWVHDFK
QDQGWBQDQG>@
QDQG[BQDQG>@\BQDQG>@
3ULPLWLYHLQVWDQFHFRQQHFWLRQOLVW
7KHWHUPLQDOOLVWGHVFULEHVKRZWKHJDWHRUVZLWFKFRQQHFWVWRWKHUHVWRIWKHPRGHO7KHJDWHRUVZLWFKW\SHFDQOLPLW
WKHVHH[SUHVVLRQV7KHFRQQHFWLRQOLVWVKDOOEHHQFORVHGLQDSDLURISDUHQWKHVHVDQGWKHWHUPLQDOVVKDOOEHVHSDUDWHG
E\FRPPDV7KHRXWSXWRUELGLUHFWLRQDOWHUPLQDOVVKDOODOZD\VFRPHÀUVWLQWKHWHUPLQDOOLVWIROORZHGE\WKHLQSXW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
WHUPLQDOV
7KHWHUPLQDOFRQQHFWLRQVIRUDQDUUD\RILQVWDQFHVVKDOOIROORZWKHVHUXOHV
³ 7KHELWOHQJWKRIHDFKSRUWH[SUHVVLRQLQWKHGHFODUHGLQVWDQFHDUUD\VKDOOEHFRPSDUHGZLWKWKHELWOHQJWKRI
HDFKVLQJOHLQVWDQFHSRUWRUWHUPLQDOLQWKHLQVWDQWLDWHGPRGXOHRUSULPLWLYH
³ )RU HDFK SRUW RU WHUPLQDO ZKHUH WKH ELW OHQJWK RI WKH LQVWDQFHDUUD\ SRUW H[SUHVVLRQ LV WKH VDPH DV WKH ELW
OHQJWK RI WKH VLQJOHLQVWDQFH SRUW WKH LQVWDQFHDUUD\ SRUW H[SUHVVLRQ VKDOO EH FRQQHFWHG WR HDFK VLQJOH
LQVWDQFHSRUW
³ ,IELWOHQJWKVDUHGLIIHUHQWHDFKLQVWDQFHVKDOOJHWDSDUWVHOHFWRIWKHSRUWH[SUHVVLRQDVVSHFLÀHGLQWKHUDQJH
VWDUWLQJZLWKWKHULJKWKDQGLQGH[
³ 7RRPDQ\RUWRRIHZELWVWRFRQQHFWWRDOOWKHLQVWDQFHVVKDOOEHFRQVLGHUHGDQHUURU
$QLQGLYLGXDOLQVWDQFHIURPDQDUUD\RILQVWDQFHVVKDOOEHUHIHUHQFHGLQWKHVDPHPDQQHUDVUHIHUHQFLQJDQHOHPHQWRI
DQDUUD\RIUHJLVWHUV
([DPSOHV
([DPSOH ³7KH IROORZLQJ GHFODUDWLRQ RI QDQGBDUUD\ GHFODUHV IRXU LQVWDQFHV WKDW FDQ EH UHIHUHQFHG E\
QDQGBDUUD\>@QDQGBDUUD\>@QDQGBDUUD\>@DQGQDQGBDUUD\>@UHVSHFWLYHO\
QDQGQDQGBDUUD\>@
([DPSOH ³7KH WZR PRGXOH GHVFULSWLRQV WKDW IROORZ DUH HTXLYDOHQW H[FHSW IRU LQGH[HG LQVWDQFH QDPHV DQG WKH\
GHPRQVWUDWHWKHUDQJHVSHFLÀFDWLRQDQGFRQQHFWLRQUXOHVIRUGHFODULQJDQDUUD\RILQVWDQFHV
PRGXOHGULYHULQRXWHQ
LQSXW>@LQ
RXWSXW>@RXW
LQSXWHQ
EXILIDU>@RXWLQHQDUUD\RIWULVWDWHEXIIHUV
HQGPRGXOH
PRGXOHGULYHUBHTXLYLQRXWHQ
LQSXW>@LQ
RXWSXW>@RXW
LQSXWHQ
EXILIDURXW>@LQ>@HQHDFKEXIIHUGHFODUHGVHSDUDWHO\
EXILIDURXW>@LQ>@HQ
EXILIDURXW>@LQ>@HQ
EXILIDURXW>@LQ>@HQ
HQGPRGXOH
([DPSOH ³7KH WZR PRGXOH GHVFULSWLRQV WKDW IROORZ DUH HTXLYDOHQW H[FHSW IRU LQGH[HG LQVWDQFH QDPHV DQG WKH\
GHPRQVWUDWHKRZGLIIHUHQWLQVWDQFHVZLWKLQDQDUUD\RILQVWDQFHVDUHFRQQHFWHGZKHQWKHSRUWVL]HVGRQRWPDWFK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHEXVGULYHUEXVLQEXVKLJKEXVORZHQKHQO
LQSXW>@LQ
RXWSXW>@EXVKLJKEXVORZ
LQSXWHQKHQO
GULYHUEXVDUEXVLQ>@EXVKLJK>@HQK
GULYHUEXVDUEXVLQ>@EXVKLJK>@HQK
GULYHUEXVDUEXVLQ>@EXVORZ>@HQO
GULYHUEXVDUEXVLQ>@EXVORZ>@HQO
HQGPRGXOH
PRGXOHEXVGULYHUBHTXLYEXVLQEXVKLJKEXVORZHQKHQO
LQSXW>@EXVLQ
RXWSXW>@EXVKLJKEXVORZ
LQSXWHQKHQO
GULYHUEXVDU>@RXW^EXVKLJKEXVORZ`LQEXVLQ
HQ^HQKHQKHQOHQO`
HQGPRGXOH
([DPSOH³7KLVH[DPSOHGHPRQVWUDWHVKRZDVHULHVRIPRGXOHVFDQEHFKDLQHGWRJHWKHU)LJXUHVKRZVDQHTXLY
DOHQWVFKHPDWLFLQWHUFRQQHFWLRQRI'))LQVWDQFHV
PRGXOHGIIQTGFON
SDUDPHWHUELWV LQSXW>ELWV@G
RXWSXW>ELWV@T
LQSXWFON
'))GII>ELWV@TGFONFUHDWHDURZRI'IOLSIORSV
HQGPRGXOH
PRGXOH0[1BSLSHOLQHLQRXWFON
SDUDPHWHU0 1 0 ZLGWK1 GHSWK
LQSXW>0@LQ
RXWSXW>0@RXW
LQSXWFON
ZLUH>01@W
0UHGHILQHVWKHELWVSDUDPHWHUIRUGIIQ
FUHDWHS>1@FROXPQVRIGIIQURZVSLSHOLQH
GIIQ0S>1@^RXWW`^WLQ`FON
HQGPRGXOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
S>@
S>@
W>@
LQ>@
LQ>@
FON
W>@
GII>@
GII>@
LQ>@
GII>@
GII>@
W>@
GII>@
RXW>@
GII>@
RXW>@
W>@
W>@
GII>@
RXW>@
GII>@
GII>@
GII>@
W>@
S>@
W>@
W>@
W>@
LQ>@
S>@
GII>@
GII>@
RXW>@
)LJXUH³6FKHPDWLFGLDJUDPRILQWHUFRQQHFWLRQVLQDUUD\RILQVWDQFHV
$QGQDQGQRURU[RUDQG[QRUJDWHV
7KHLQVWDQFHGHFODUDWLRQRIDPXOWLSOHLQSXWORJLFJDWHVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
DQG
QDQG
QRU
RU
[RU
[QRU
7KHGHOD\VSHFLÀFDWLRQVKDOOEH]HURRQHRUWZRGHOD\V,IWKHVSHFLÀFDWLRQFRQWDLQVWZRGHOD\VWKHÀUVWGHOD\VKDOO
GHWHUPLQHWKHRXWSXWULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHUPLQHWKHRXWSXWIDOOGHOD\DQGWKHVPDOOHURIWKHWZR
GHOD\VVKDOODSSO\WRRXWSXWWUDQVLWLRQVWR[,IRQO\RQHGHOD\LVVSHFLÀHGLWVKDOOVSHFLI\ERWKWKHULVHGHOD\DQGWKH
IDOOGHOD\,IWKHUHLVQRGHOD\VSHFLÀFDWLRQWKHUHVKDOOEHQRSURSDJDWLRQGHOD\WKURXJKWKHJDWH
7KHVHVL[ORJLFJDWHVVKDOOKDYHRQHRXWSXWDQGRQHRUPRUHLQSXWV7KHÀUVWWHUPLQDOLQWKHWHUPLQDOOLVWVKDOOFRQQHFW
WRWKHRXWSXWRIWKHJDWHDQGDOORWKHUWHUPLQDOVFRQQHFWWRLWVLQSXWV
7KHWUXWKWDEOHVIRUWKHVHJDWHVVKRZLQJWKHUHVXOWRIWZRLQSXWYDOXHVDSSHDULQ7DEOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³7UXWKWDEOHVIRUPXOWLSOHLQSXWORJLFJDWHV
DQG
[
]
RU
[
]
[RU
[
]
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
]
[
[
[
]
[
[
[
]
[
[
[
[
QDQG
[
]
QRU
[
]
[QRU
[
]
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
]
[
[
[
]
[
[
[
]
[
[
[
[
9HUVLRQVRIWKHVHVL[ORJLFJDWHVKDYLQJPRUHWKDQWZRLQSXWVVKDOOKDYHDQDWXUDOH[WHQVLRQEXWWKHQXPEHURILQSXWV
VKDOOQRWDOWHUSURSDJDWLRQGHOD\V
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVDWZRLQSXWDQGJDWH
DQGDRXWLQLQ
7KHLQSXWVDUHLQDQGLQ7KHRXWSXWLVRXW7KHLQVWDQFHQDPHLVD
%XIDQGQRWJDWHV
7KHLQVWDQFHGHFODUDWLRQRIDPXOWLSOHRXWSXWORJLFJDWHVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
EXI
QRW
7KHGHOD\VSHFLÀFDWLRQVKDOOEH]HURRQHRUWZRGHOD\V,IWKHVSHFLÀFDWLRQFRQWDLQVWZRGHOD\VWKHÀUVWGHOD\VKDOO
GHWHUPLQHWKHRXWSXWULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHUPLQHWKHRXWSXWIDOOGHOD\DQGWKHVPDOOHURIWKHWZR
GHOD\VVKDOODSSO\WRRXWSXWWUDQVLWLRQVWR[,IRQO\RQHGHOD\LVVSHFLÀHGLWVKDOOVSHFLI\ERWKWKHULVHGHOD\DQGWKH
IDOOGHOD\,IWKHUHLVQRGHOD\VSHFLÀFDWLRQWKHUHVKDOOEHQRSURSDJDWLRQGHOD\WKURXJKWKHJDWH
7KHVHWZRORJLFJDWHVVKDOOKDYHRQHLQSXWDQGRQHRUPRUHRXWSXWV7KHODVWWHUPLQDOLQWKHWHUPLQDOOLVWVKDOOFRQQHFW
WRWKHLQSXWRIWKHORJLFJDWHDQGWKHRWKHUWHUPLQDOVVKDOOFRQQHFWWRWKHRXWSXWVRIWKHORJLFJDWH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7UXWKWDEOHVIRUWKHVHORJLFJDWHVZLWKRQHLQSXWDQGRQHRXWSXWDUHVKRZQLQ7DEOH
7DEOH³7UXWKWDEOHVIRUPXOWLSOHRXWSXWORJLFJDWHV
EXI
QRW
LQSXW
RXWSXW
LQSXW
RXWSXW
[
[
[
[
]
[
]
[
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVDWZRRXWSXWEXI
EXIERXWRXWLQ
7KHLQSXWLVLQ7KHRXWSXWVDUHRXWDQGRXW7KHLQVWDQFHQDPHLVE
%XILIEXILIQRWLIDQGQRWLIJDWHV
7KHLQVWDQFHGHFODUDWLRQRIDWULVWDWHORJLFJDWHVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
EXILI
EXILI
QRWLI
QRWLI
7KHVHIRXUORJLFJDWHVPRGHOWKUHHVWDWHGULYHUV,QDGGLWLRQWRORJLFYDOXHVDQGWKHVHJDWHVFDQRXWSXW]
7KHGHOD\VSHFLÀFDWLRQVKDOOEH]HURRQHWZRRUWKUHHGHOD\V,IWKHGHOD\VSHFLÀFDWLRQFRQWDLQVWKUHHGHOD\VWKH
ÀUVWGHOD\VKDOOGHWHUPLQHWKHULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHUPLQHWKHIDOOGHOD\WKHWKLUGGHOD\VKDOOGHWHU
PLQHWKHGHOD\RIWUDQVLWLRQVWR]DQGWKHVPDOOHVWRIWKHWKUHHGHOD\VVKDOOGHWHUPLQHWKHGHOD\RIWUDQVLWLRQVWR[,I
WKHVSHFLÀFDWLRQFRQWDLQVWZRGHOD\VWKHÀUVWGHOD\VKDOOGHWHUPLQHWKHRXWSXWULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHU
PLQHWKHRXWSXWIDOOGHOD\DQGWKHVPDOOHURIWKHWZRGHOD\VVKDOODSSO\WRRXWSXWWUDQVLWLRQVWR[DQG],IRQO\RQH
GHOD\LVVSHFLÀHGLWVKDOOVSHFLI\WKHGHOD\IRUDOORXWSXWWUDQVLWLRQV,IWKHUHLVQRGHOD\VSHFLÀFDWLRQWKHUHVKDOOEH
QRSURSDJDWLRQGHOD\WKURXJKWKHJDWH
6RPHFRPELQDWLRQVRIGDWDLQSXWYDOXHVDQGFRQWUROLQSXWYDOXHVFDQFDXVHWKHVHJDWHVWRRXWSXWHLWKHURIWZRYDOXHV
ZLWKRXWDSUHIHUHQFHIRUHLWKHUYDOXHVHH7KHVHORJLFWDEOHVIRUWKHVHJDWHVLQFOXGHWZRV\PEROVUHSUHVHQWLQJ
VXFKXQNQRZQUHVXOWV7KHV\PERO/VKDOOUHSUHVHQWDUHVXOWWKDWKDVDYDOXHRU]7KHV\PERO+VKDOOUHSUHVHQWD
UHVXOWWKDWKDVDYDOXHRU]'HOD\VRQWUDQVLWLRQVWR+RU/VKDOOEHWUHDWHGWKHVDPHDVGHOD\VRQWUDQVLWLRQVWR[
7KHVHIRXUORJLFJDWHVVKDOOKDYHRQHRXWSXWRQHGDWDLQSXWDQGRQHFRQWUROLQSXW7KHÀUVWWHUPLQDOLQWKHWHUPLQDO
OLVWVKDOOFRQQHFWWRWKHRXWSXWWKHVHFRQGWHUPLQDOVKDOOFRQQHFWWRWKHGDWDLQSXWDQGWKHWKLUGWHUPLQDOVKDOOFRQQHFW
WRWKHFRQWUROLQSXW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOHSUHVHQWVWKHORJLFWDEOHVIRUWKHVHJDWHV
7DEOH³7UXWKWDEOHVIRUWULVWDWHORJLFJDWHV
&21752/
EXÀI
[
]
&21752/
EXÀI
[
]
'
]
/
/
'
]
/
/
$
]
+
+
$
]
+
+
7
[
[
]
[
[
7
[
]
[
[
[
$
]
[
]
[
[
$
]
]
[
[
[
&21752/
QRWLI
[
]
&21752/
QRWLI
[
]
'
]
+
+
'
]
+
+
$
]
/
/
$
]
/
/
7
[
[
]
[
[
7
[
]
[
[
[
$
]
[
]
[
[
$
]
]
[
[
[
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVDQLQVWDQFHRIEXILI
EXILIEIRXWZLQZFRQWUROZ
7KHRXWSXWLVRXWZWKHLQSXWLVLQZDQGWKHFRQWUROLVFRQWUROZ7KHLQVWDQFHQDPHLVEI
026VZLWFKHV
7KHLQVWDQFHGHFODUDWLRQRID026VZLWFKVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
FPRV
QPRV
SPRV
UFPRV
UQPRV
USPRV
7KHFPRVDQGUFPRVVZLWFKHVDUHGHVFULEHGLQ
7KH SPRV NH\ZRUG VWDQGV IRU WKH 3W\SH PHWDOR[LGH VHPLFRQGXFWRU 3026 WUDQVLVWRU DQG WKH QPRV NH\ZRUG
VWDQGVIRUWKH1W\SHPHWDOR[LGHVHPLFRQGXFWRU1026WUDQVLVWRU3026DQG1026WUDQVLVWRUVKDYHUHODWLYHO\
ORZLPSHGDQFHEHWZHHQWKHLUVRXUFHVDQGGUDLQVZKHQWKH\FRQGXFW7KHUSPRVNH\ZRUGVWDQGVIRUUHVLVWLYH3026
WUDQVLVWRUDQGWKHUQPRVNH\ZRUGVWDQGVIRUUHVLVWLYH1026WUDQVLVWRU5HVLVWLYH3026DQGUHVLVWLYH1026WUDQVLV
WRUVKDYHVLJQLÀFDQWO\KLJKHULPSHGDQFHEHWZHHQWKHLUVRXUFHVDQGGUDLQVZKHQWKH\FRQGXFWWKDQ3026DQG1026
WUDQVLVWRUVKDYH7KHORDGGHYLFHVLQVWDWLF026QHWZRUNVDUHH[DPSOHVRIUSPRVDQGUQPRVWUDQVLVWRUV7KHVHIRXU
VZLWFKHVDUHXQLGLUHFWLRQDOFKDQQHOVIRUGDWDVLPLODUWRWKHEXILIJDWHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHGHOD\VSHFLÀFDWLRQVKDOOEH]HURRQHWZRRUWKUHHGHOD\V,IWKHGHOD\VSHFLÀFDWLRQFRQWDLQVWKUHHGHOD\VWKH
ÀUVWGHOD\VKDOOGHWHUPLQHWKHULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHUPLQHWKHIDOOGHOD\WKHWKLUGGHOD\VKDOOGHWHU
PLQHWKHGHOD\RIWUDQVLWLRQVWR]DQGWKHVPDOOHVWRIWKHWKUHHGHOD\VVKDOOGHWHUPLQHWKHGHOD\RIWUDQVLWLRQVWR[,I
WKHVSHFLÀFDWLRQFRQWDLQVWZRGHOD\VWKHÀUVWGHOD\VKDOOGHWHUPLQHWKHRXWSXWULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHU
PLQHWKHRXWSXWIDOOGHOD\DQGWKHVPDOOHURIWKHWZRGHOD\VVKDOODSSO\WRRXWSXWWUDQVLWLRQVWR[DQG],IRQO\RQH
GHOD\LVVSHFLÀHGLWVKDOOVSHFLI\WKHGHOD\IRUDOORXWSXWWUDQVLWLRQV,IWKHUHLVQRGHOD\VSHFLÀFDWLRQWKHUHVKDOOEH
QRSURSDJDWLRQGHOD\WKURXJKWKHVZLWFK
6RPHFRPELQDWLRQVRIGDWDLQSXWYDOXHVDQGFRQWUROLQSXWYDOXHVFDQFDXVHWKHVHVZLWFKHVWRRXWSXWHLWKHURIWZRYDO
XHVZLWKRXWDSUHIHUHQFHIRUHLWKHUYDOXH7KHORJLFWDEOHVIRUWKHVHVZLWFKHVLQFOXGHWZRV\PEROVUHSUHVHQWLQJVXFK
XQNQRZQUHVXOWV7KHV\PERO/UHSUHVHQWVDUHVXOWWKDWKDVDYDOXHRU]7KHV\PERO+UHSUHVHQWVDUHVXOWWKDWKDVD
YDOXHRU]'HOD\VRQWUDQVLWLRQVWR+DQG/VKDOOEHWKHVDPHDVGHOD\VRQWUDQVLWLRQVWR[
7KHVHIRXUVZLWFKHVVKDOOKDYHRQHRXWSXWRQHGDWDLQSXWDQGRQHFRQWUROLQSXW7KHÀUVWWHUPLQDOLQWKHWHUPLQDOOLVW
VKDOOFRQQHFWWRWKHRXWSXWWKHVHFRQGWHUPLQDOVKDOOFRQQHFWWRWKHGDWDLQSXWDQGWKHWKLUGWHUPLQDOVKDOOFRQQHFWWR
WKHFRQWUROLQSXW
7KH QPRV DQG SPRV VZLWFKHV VKDOO SDVV VLJQDOV IURP WKHLU LQSXWV DQG WKURXJK WKHLU RXWSXWV ZLWK D FKDQJH LQ WKH
VWUHQJWKRIWKHVLJQDOLQRQO\RQHFDVHDVGLVFXVVHGLQ7KHUQPRVDQGUSPRVVZLWFKHVVKDOOUHGXFHWKHVWUHQJWK
RIVLJQDOVWKDWSURSDJDWHWKURXJKWKHPDVGLVFXVVHGLQ
7DEOHSUHVHQWVWKHORJLFWDEOHVIRUWKHVHVZLWFKHV
7DEOH³7UXWKWDEOHVIRU026VZLWFKHV
&21752/
SPRV
USPRV
[
]
&21752/
QPRV
UQPRV
[
]
'
]
/
/
'
]
/
/
$
]
+
+
$
]
+
+
7
[
[
]
[
[
7
[
]
[
[
[
$
]
]
]
]
]
$
]
]
]
]
]
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVDSPRVVZLWFK
SPRVSRXWGDWDFRQWURO
7KHRXWSXWLVRXWWKHGDWDLQSXWLVGDWDDQGWKHFRQWUROLQSXWLVFRQWURO7KHLQVWDQFHQDPHLVS
%LGLUHFWLRQDOSDVVVZLWFKHV
7KHLQVWDQFHGHFODUDWLRQRIDELGLUHFWLRQDOSDVVVZLWFKVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
WUDQ
UWUDQ
WUDQLI
UWUDQLI
WUDQLI
UWUDQLI
7KHELGLUHFWLRQDOSDVVVZLWFKHVVKDOOQRWGHOD\VLJQDOVSURSDJDWLQJWKURXJKWKHP:KHQWUDQLIWUDQLIUWUDQLIRU
UWUDQLIGHYLFHVDUHWXUQHGRIIWKH\VKDOOEORFNVLJQDOVDQGZKHQWKH\DUHWXUQHGRQWKH\VKDOOSDVVVLJQDOV7KHWUDQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DQGUWUDQGHYLFHVFDQQRWEHWXUQHGRIIDQGWKH\VKDOODOZD\VSDVVVLJQDOV
7KHGHOD\VSHFLÀFDWLRQVIRUWUDQLIWUDQLIUWUDQLIDQGUWUDQLIGHYLFHVVKDOOEH]HURRQHRUWZRGHOD\V,IWKH
VSHFLÀFDWLRQFRQWDLQVWZRGHOD\VWKHÀUVWGHOD\VKDOOGHWHUPLQHWKHWXUQRQGHOD\DQGWKHVHFRQGGHOD\VKDOOGHWHU
PLQHWKHWXUQRIIGHOD\DQGWKHVPDOOHURIWKHWZRGHOD\VVKDOODSSO\WRRXWSXWWUDQVLWLRQVWR[DQG],IRQO\RQH
GHOD\LVVSHFLÀHGLWVKDOOVSHFLI\ERWKWKHWXUQRQDQGWKHWXUQRIIGHOD\V,IWKHUHLVQRGHOD\VSHFLÀFDWLRQWKHUHVKDOO
EHQRWXUQRQRUWXUQRIIGHOD\IRUWKHELGLUHFWLRQDOSDVVVZLWFK
7KHELGLUHFWLRQDOSDVVVZLWFKHVWUDQDQGUWUDQVKDOOQRWDFFHSWGHOD\VSHFLÀFDWLRQ
7KHWUDQLIWUDQLIUWUDQLIDQGUWUDQLIGHYLFHVVKDOOKDYHWKUHHLWHPVLQWKHLUWHUPLQDOOLVWV7KHÀUVWWZRVKDOOEH
ELGLUHFWLRQDOWHUPLQDOVWKDWFRQGXFWVLJQDOVWRDQGIURPWKHGHYLFHVDQGWKHWKLUGWHUPLQDOVKDOOFRQQHFWWRDFRQWURO
LQSXW7KHWUDQDQGUWUDQGHYLFHVVKDOOKDYHWHUPLQDOOLVWVFRQWDLQLQJWZRELGLUHFWLRQDOWHUPLQDOV%RWKELGLUHFWLRQDO
WHUPLQDOVVKDOOXQFRQGLWLRQDOO\FRQGXFWVLJQDOVWRDQGIURPWKHGHYLFHVDOORZLQJVLJQDOVWRSDVVLQHLWKHUGLUHFWLRQ
WKURXJKWKHGHYLFHV7KHELGLUHFWLRQDOWHUPLQDOVRIDOOVL[GHYLFHVVKDOOEHFRQQHFWHGRQO\WRVFDODUQHWVRUELWVHOHFWV
RIYHFWRUQHWV
7KHWUDQWUDQLIDQGWUDQLIGHYLFHVVKDOOSDVVVLJQDOVZLWKDQDOWHUDWLRQLQWKHLUVWUHQJWKLQRQO\RQHFDVHDVGLV
FXVVHGLQ7KHUWUDQUWUDQLIDQGUWUDQLIGHYLFHVVKDOOUHGXFHWKHVWUHQJWKRIWKHVLJQDOVSDVVLQJWKURXJK
WKHPDFFRUGLQJWRUXOHVGLVFXVVHGLQ
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVDQLQVWDQFHRIWUDQLI
WUDQLIWLQRXWLQRXWFRQWURO
7KHELGLUHFWLRQDOWHUPLQDOVDUHLQRXWDQGLQRXW7KHFRQWUROLQSXWLVFRQWURO7KHLQVWDQFHQDPHLVW
&026VZLWFKHV
7KHLQVWDQFHGHFODUDWLRQRID&026VZLWFKVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
FPRV
UFPRV
7KHGHOD\VSHFLÀFDWLRQVKDOOEH]HURRQHWZRRUWKUHHGHOD\V,IWKHGHOD\VSHFLÀFDWLRQFRQWDLQVWKUHHGHOD\VWKH
ÀUVWGHOD\VKDOOGHWHUPLQHWKHULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHUPLQHWKHIDOOGHOD\WKHWKLUGGHOD\VKDOOGHWHU
PLQHWKHGHOD\RIWUDQVLWLRQVWR]DQGWKHVPDOOHVWRIWKHWKUHHGHOD\VVKDOOGHWHUPLQHWKHGHOD\RIWUDQVLWLRQVWR[
'HOD\VLQWUDQVLWLRQVWR+RU/DUHWKHVDPHDVGHOD\VLQWUDQVLWLRQVWR[,IWKHVSHFLÀFDWLRQFRQWDLQVWZRGHOD\VWKH
ÀUVWGHOD\VKDOOGHWHUPLQHWKHRXWSXWULVHGHOD\WKHVHFRQGGHOD\VKDOOGHWHUPLQHWKHRXWSXWIDOOGHOD\DQGWKHVPDOOHU
RIWKHWZRGHOD\VVKDOODSSO\WRRXWSXWWUDQVLWLRQVWR[DQG],IRQO\RQHGHOD\LVVSHFLÀHGLWVKDOOVSHFLI\WKHGHOD\
IRUDOORXWSXWWUDQVLWLRQV,IWKHUHLVQRGHOD\VSHFLÀFDWLRQWKHUHVKDOOEHQRSURSDJDWLRQGHOD\WKURXJKWKHVZLWFK
7KHFPRVDQGUFPRVVZLWFKHVVKDOOKDYHDGDWDLQSXWDGDWDRXWSXWDQGWZRFRQWUROLQSXWV,QWKHWHUPLQDOOLVWWKH
ÀUVWWHUPLQDOVKDOOFRQQHFWWRWKHGDWDRXWSXWWKHVHFRQGWHUPLQDOVKDOOFRQQHFWWRWKHGDWDLQSXWWKHWKLUGWHUPLQDO
VKDOOFRQQHFWWRWKHQFKDQQHOFRQWUROLQSXWDQGWKHODVWWHUPLQDOVKDOOFRQQHFWWRWKHSFKDQQHOFRQWUROLQSXW
7KHFPRVJDWHVKDOOSDVVVLJQDOVZLWKDQDOWHUDWLRQLQWKHLUVWUHQJWKLQRQO\RQHFDVHDVGLVFXVVHGLQ7KHUFPRV
JDWHVKDOOUHGXFHWKHVWUHQJWKRIVLJQDOVSDVVLQJWKURXJKLWDFFRUGLQJWRUXOHVGHVFULEHGLQ
7KHFPRVVZLWFKVKDOOEHWUHDWHGDVWKHFRPELQDWLRQRIDSPRVVZLWFKDQGDQQPRVVZLWFK7KHUFPRVVZLWFKVKDOO
EHWUHDWHGDVWKHFRPELQDWLRQRIDQUSPRVVZLWFKDQGDQUQPRVVZLWFK7KHFRPELQHGVZLWFKHVLQWKHVHFRQÀJXUD
WLRQVVKDOOVKDUHGDWDLQSXWDQGGDWDRXWSXWWHUPLQDOVEXWWKH\VKDOOKDYHVHSDUDWHFRQWUROLQSXWV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([DPSOH
7KHHTXLYDOHQFHRIWKHFPRVJDWHWRWKHSDLULQJRIDQQPRVJDWHDQGDSPRVJDWHLVVKRZQLQWKHIROORZLQJH[DPSOH
FPRVZGDWDLQQFRQWUROSFRQWURO
QFRQWURO
QPRV
LVHTXLYDOHQWWR
Z
GDWDLQ
SPRV
QPRVZGDWDLQQFRQWURO
SFRQWURO
3XOOXSDQGSXOOGRZQVRXUFHV
7KHLQVWDQFHGHFODUDWLRQRIDSXOOXSRUDSXOOGRZQVRXUFHVKDOOEHJLQZLWKRQHRIWKHIROORZLQJNH\ZRUGV
SXOOXS
SXOOGRZQ
$SXOOXSVRXUFHVKDOOSODFHDORJLFYDOXHRQWKHQHWVFRQQHFWHGLQLWVWHUPLQDOOLVW$SXOOGRZQVRXUFHVKDOOSODFHD
ORJLFYDOXHRQWKHQHWVFRQQHFWHGLQLWVWHUPLQDOOLVW7KHVLJQDOVWKDWWKHVHVRXUFHVSODFHRQQHWVVKDOOKDYHSXOO
VWUHQJWKLQWKHDEVHQFHRIDVWUHQJWKVSHFLÀFDWLRQ,IFRQÁLFWLQJVWUHQJWKVSHFLÀFDWLRQLVGHFODUHGLWVKDOOEHLJQRUHG
7KHUHVKDOOEHQRGHOD\VSHFLÀFDWLRQVIRUWKHVHVRXUFHV
([DPSOH
7KHIROORZLQJH[DPSOHGHFODUHVWZRSXOOXSLQVWDQFHV
SXOOXSVWURQJSQHWDSQHWE
,QWKLVH[DPSOHWKHSLQVWDQFHGULYHVQHWDDQGWKHSLQVWDQFHGULYHVQHWE
,PSOLFLWQHWGHFODUDWLRQV
,QFOXGLQJDSUHYLRXVO\XQXVHGLGHQWLÀHULQDWHUPLQDOOLVWVKDOOLPSOLFLWO\GHFODUHDQHZQHWRIW\SHZLUHRURIW\SH
GHÀQHGE\WKHFRPSLOHUGLUHFWLYHCGHIDXOWBQHWW\SHVHHZLWK]HURGHOD\
(DFKLPSOLFLWO\GHFODUHGQHWVKDOOFRQQHFWWRRQHRUPRUHRIWKHIROORZLQJ
³ *DWHRXWSXW
³ %LGLUHFWLRQDOWHUPLQDO
³ 0RGXOHRXWSXWSRUW
/RJLFVWUHQJWKPRGHOLQJ
7KH 9HULORJ +'/ SURYLGHV IRU DFFXUDWH PRGHOLQJ RI VLJQDO FRQWHQWLRQ ELGLUHFWLRQDO SDVV JDWHV UHVLVWLYH 026
GHYLFHVG\QDPLF026FKDUJHVKDULQJDQGRWKHUWHFKQRORJ\GHSHQGHQWQHWZRUNFRQÀJXUDWLRQVE\DOORZLQJVFDODU
QHWVLJQDOYDOXHVWRKDYHDIXOOUDQJHRIXQNQRZQYDOXHVDQGGLIIHUHQWOHYHOVRIVWUHQJWKRUFRPELQDWLRQVRIOHYHOVRI
VWUHQJWK7KLVPXOWLSOHOHYHOORJLFVWUHQJWKPRGHOLQJUHVROYHVFRPELQDWLRQVRIVLJQDOVLQWRNQRZQRUXQNQRZQYDOXHV
WRUHSUHVHQWWKHEHKDYLRURIKDUGZDUHZLWKLPSURYHGDFFXUDF\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$VWUHQJWKVSHFLÀFDWLRQVKDOOKDYHWZRFRPSRQHQWV
D
7KHVWUHQJWKRIWKHSRUWLRQRIWKHQHWYDOXHFDOOHGVWUHQJWKGHVLJQDWHGDVRQHRIWKHIROORZLQJ
VXSSO\
E
VWURQJ
SXOO
ZHDN
KLJK]
7KHVWUHQJWKRIWKHSRUWLRQRIWKHQHWYDOXHFDOOHGVWUHQJWKGHVLJQDWHGDVRQHRIWKHIROORZLQJ
VXSSO\
VWURQJ
SXOO
ZHDN
KLJK]
7KHFRPELQDWLRQVKLJK]KLJK]DQGKLJK]KLJK]VKDOOEHFRQVLGHUHGLOOHJDO
'HVSLWHWKLVGLYLVLRQRIWKHVWUHQJWKVSHFLÀFDWLRQLWLVKHOSIXOWRFRQVLGHUVWUHQJWKDVDSURSHUW\RFFXS\LQJUHJLRQVRI
DFRQWLQXXPLQRUGHUWRSUHGLFWWKHUHVXOWVRIFRPELQDWLRQVRIVLJQDOV
7DEOHGHPRQVWUDWHVWKHFRQWLQXXPRIVWUHQJWKV7KHOHIWFROXPQOLVWVWKHNH\ZRUGVXVHGLQVSHFLI\LQJVWUHQJWKV
7KHULJKWFROXPQJLYHVFRUUHODWHGVWUHQJWKOHYHOV
7DEOH³6WUHQJWKOHYHOVIRUVFDODUQHWVLJQDOYDOXHV
6WUHQJWKQDPH
6WUHQJWKOHYHO
VXSSO\
VWURQJ
SXOO
ODUJH
ZHDN
PHGLXP
VPDOO
KLJK]
KLJK]
VPDOO
PHGLXP
ZHDN
ODUJH
SXOO
VWURQJ
VXSSO\
,Q7DEOHWKHUHDUHIRXUGULYLQJVWUHQJWKV
VXSSO\
VWURQJ
SXOO
ZHDN
6LJQDOVZLWKGULYLQJVWUHQJWKVVKDOOSURSDJDWHIURPJDWHRXWSXWVDQGFRQWLQXRXVDVVLJQPHQWRXWSXWV
,Q7DEOHWKHUHDUHWKUHHFKDUJHVWRUDJHVWUHQJWKV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
ODUJH
PHGLXP
VPDOO
6LJQDOVZLWKWKHFKDUJHVWRUDJHVWUHQJWKVVKDOORULJLQDWHLQWKHWULUHJQHWW\SH
,WLVSRVVLEOHWRWKLQNRIWKHVWUHQJWKVRIVLJQDOVLQWKHSUHFHGLQJWDEOHDVORFDWLRQVRQWKHVFDOHLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³6FDOHRIVWUHQJWKV
'LVFXVVLRQVRIVLJQDOFRPELQDWLRQVODWHULQWKLVVHFWLRQHPSOR\VJUDSKLFVVLPLODUWRWKRVHXVHGLQ)LJXUH
,IWKHVLJQDOYDOXHRIDQHWLVNQRZQDOORILWVVWUHQJWKOHYHOVVKDOOEHLQHLWKHUWKHVWUHQJWKSDUWRIWKHVFDOHUHSUH
VHQWHGE\)LJXUHRUDOOVWUHQJWKOHYHOVVKDOOEHLQLWVVWUHQJWKSDUW,IWKHVLJQDOYDOXHRIDQHWLVXQNQRZQLWVKDOO
KDYHVWUHQJWKOHYHOVLQERWKWKHVWUHQJWKDQGWKHVWUHQJWKSDUWV$QHWZLWKDVLJQDOYDOXH]VKDOOKDYHDVWUHQJWK
OHYHORQO\LQRQHRIWKHVXEGLYLVLRQVRIWKHSDUWVRIWKHVFDOH
6WUHQJWKVDQGYDOXHVRIFRPELQHGVLJQDOV
,QDGGLWLRQWRDVLJQDOYDOXHDQHWVKDOOKDYHHLWKHUDVLQJOHXQDPELJXRXVVWUHQJWKOHYHORUDQDPELJXRXVVWUHQJWK
FRQVLVWLQJRIPRUHWKDQRQHOHYHO:KHQVLJQDOVFRPELQHWKHLUVWUHQJWKVDQGYDOXHVVKDOOGHWHUPLQHWKHVWUHQJWKDQG
YDOXHRIWKHUHVXOWLQJVLJQDOLQDFFRUGDQFHZLWKWKHSULQFLSOHVLQWKURXJK
&RPELQHGVLJQDOVRIXQDPELJXRXVVWUHQJWK
7KLVVXEFODXVHGHDOVZLWKFRPELQDWLRQVRIVLJQDOVLQZKLFKHDFKVLJQDOKDVDNQRZQYDOXHDQGDVLQJOHVWUHQJWKOHYHO
,IWZRRUPRUHVLJQDOVRIXQHTXDOVWUHQJWKFRPELQHLQDZLUHGQHWFRQÀJXUDWLRQWKHVWURQJHUVLJQDOVKDOOGRPLQDWHDOO
WKHZHDNHUGULYHUVDQGGHWHUPLQHWKHUHVXOW7KHFRPELQDWLRQRIWZRRUPRUHVLJQDOVRIOLNHYDOXHVKDOOUHVXOWLQWKH
VDPHYDOXHZLWKWKHJUHDWHURIDOOWKHVWUHQJWKV7KHFRPELQDWLRQRIVLJQDOVLGHQWLFDOLQVWUHQJWKDQGYDOXHVKDOOUHVXOW
LQWKHVDPHVLJQDO
7KH FRPELQDWLRQ RI VLJQDOV ZLWK XQOLNH YDOXHV DQG WKH VDPH VWUHQJWK FDQ KDYH WKUHH SRVVLEOH UHVXOWV 7ZR RI WKH
UHVXOWVRFFXULQWKHSUHVHQFHRIZLUHGORJLFDQGWKHWKLUGRFFXUVLQLWVDEVHQFH:LUHGORJLFLVGLVFXVVHGLQ7KH
UHVXOWLQWKHDEVHQFHRIZLUHGORJLFLVWKHVXEMHFWRI)LJXUH
([DPSOH
3X
6W
6X
/D
6W
6X
)LJXUH³&RPELQLQJXQHTXDOVWUHQJWKV
,Q)LJXUHWKHQXPEHUVLQSDUHQWKHVHVLQGLFDWHWKHUHODWLYHVWUHQJWKVRIWKHVLJQDOV7KHFRPELQDWLRQRIDSXOO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DQGDVWURQJUHVXOWVLQDVWURQJZKLFKLVWKHVWURQJHURIWKHWZRVLJQDOV
$PELJXRXVVWUHQJWKVVRXUFHVDQGFRPELQDWLRQV
7KHUHDUHVHYHUDOFODVVLÀFDWLRQVRIVLJQDOVSRVVHVVLQJDPELJXRXVVWUHQJWKV
³ 6LJQDOVZLWKNQRZQYDOXHVDQGPXOWLSOHVWUHQJWKOHYHOV
³ 6LJQDOVZLWKDYDOXH[ZKLFKKDYHVWUHQJWKOHYHOVFRQVLVWLQJRIVXEGLYLVLRQVRIERWKWKHVWUHQJWKDQGWKH
VWUHQJWKSDUWVRIWKHVFDOHRIVWUHQJWKVLQ)LJXUH
³ 6LJQDOVZLWKDYDOXH/ZKLFKKDYHVWUHQJWKOHYHOVWKDWFRQVLVWRIKLJKLPSHGDQFHMRLQHGZLWKVWUHQJWKOHYHOV
LQWKHVWUHQJWKSDUWRIWKHVFDOHRIVWUHQJWKVLQ)LJXUH
³ 6LJQDOVZLWKDYDOXH+ZKLFKKDYHVWUHQJWKOHYHOVWKDWFRQVLVWRIKLJKLPSHGDQFHMRLQHGZLWKVWUHQJWKOHYHOV
LQWKHVWUHQJWKSDUWRIWKHVFDOHRIVWUHQJWKVLQ)LJXUH
0DQ\FRQÀJXUDWLRQVFDQSURGXFHVLJQDOVRIDPELJXRXVVWUHQJWK:KHQWZRVLJQDOVRIHTXDOVWUHQJWKDQGRSSRVLWH
YDOXHFRPELQHWKHUHVXOWVKDOOEHDYDOXH[DORQJZLWKWKHVWUHQJWKOHYHOVRIERWKVLJQDOVDQGDOOWKHVPDOOHUVWUHQJWK
OHYHOV
([DPSOHV
)LJXUHVKRZVWKHFRPELQDWLRQRIDZHDNVLJQDOZLWKDYDOXHDQGDZHDNVLJQDOZLWKDYDOXH\LHOGLQJDVLJQDO
ZLWKZHDNVWUHQJWKDQGDYDOXH[
:H
:H;
:H
)LJXUH³&RPELQDWLRQRIVLJQDOVRIHTXDOVWUHQJWKDQGRSSRVLWHYDOXHV
7KLVRXWSXWVLJQDOLVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJKW
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³:HDN[VLJQDOVWUHQJWK
$QDPELJXRXVVLJQDOVWUHQJWKFDQEHDUDQJHRISRVVLEOHYDOXHV$QH[DPSOHLVWKHVWUHQJWKRIWKHRXWSXWIURPWKHWUL
VWDWHGULYHUVZLWKXQNQRZQFRQWUROLQSXWVDVVKRZQLQ)LJXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
;
EXILI
6W+
6W
;
EXILI
6W/
:H
)LJXUH³%XILIVZLWKFRQWUROLQSXWVRI[
7KHRXWSXWRIWKHEXILILQ)LJXUHLVDVWURQJ+FRPSRVHGRIWKHUDQJHRIYDOXHVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³6WURQJ+UDQJHRIYDOXHV
7KHRXWSXWRIWKHEXILILQ)LJXUHLVDVWURQJ/FRPSRVHGRIWKHUDQJHRIYDOXHVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³6WURQJ/UDQJHRIYDOXHV
7KHFRPELQDWLRQRIWZRVLJQDOVRIDPELJXRXVVWUHQJWKVKDOOUHVXOWLQDVLJQDORIDPELJXRXVVWUHQJWK7KHUHVXOWLQJ
VLJQDOVKDOOKDYHDUDQJHRIVWUHQJWKOHYHOVWKDWLQFOXGHVWKHVWUHQJWKOHYHOVLQLWVFRPSRQHQWVLJQDOV7KHFRPELQDWLRQ
RIRXWSXWVIURPWZRWULVWDWHGULYHUVZLWKXQNQRZQFRQWUROLQSXWVVKRZQLQ)LJXUHLVDQH[DPSOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
;
3X+
3X
;
;
:H
:H/
)LJXUH³&RPELQHGVLJQDOVRIDPELJXRXVVWUHQJWK
,Q)LJXUHWKHFRPELQDWLRQRIVLJQDOVRIDPELJXRXVVWUHQJWKVSURGXFHVDUDQJHWKDWLQFOXGHVWKHH[WUHPHVRIWKH
VLJQDOVDQGDOOWKHVWUHQJWKVEHWZHHQWKHPDVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³5DQJHRIVWUHQJWKVIRUDQXQNQRZQVLJQDO
7KHUHVXOWLVDYDOXH[EHFDXVHLWVUDQJHLQFOXGHVWKHYDOXHVDQG7KHQXPEHUZKLFKSUHFHGHVWKH[LVDFRQ
FDWHQDWLRQRIWZRGLJLWV7KHÀUVWLVWKHGLJLWZKLFKFRUUHVSRQGVWRWKHKLJKHVWVWUHQJWKOHYHOIRUWKHUHVXOW7KH
VHFRQGGLJLWFRUUHVSRQGVWRWKHKLJKHVWVWUHQJWKOHYHOIRUWKHUHVXOW
6ZLWFKQHWZRUNVFDQSURGXFHDUDQJHVRIVWUHQJWKVRIWKHVDPHYDOXHVXFKDVWKHVLJQDOVIURPWKHXSSHUDQGORZHU
FRQÀJXUDWLRQVLQ)LJXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
UHJE
9FF SXOOXS
[
3X UHJD UHJJ [
;
3X
UHJG
DQG
UHJH
:H
SXOOGRZQJURXQG
)LJXUH³$PELJXRXVVWUHQJWKVIURPVZLWFKQHWZRUNV
,Q)LJXUHWKHXSSHUFRPELQDWLRQRIDUHJLVWHUDJDWHFRQWUROOHGE\DUHJLVWHURIXQVSHFLÀHGYDOXHDQGDSXOOXS
SURGXFHVDVLJQDOZLWKDYDOXHRIDQGDUDQJHRIVWUHQJWKVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³5DQJHRIWZRVWUHQJWKVRIDGHILQHGYDOXH
,Q)LJXUHWKHORZHUFRPELQDWLRQRIDSXOOGRZQDJDWHFRQWUROOHGE\DUHJLVWHURIXQVSHFLÀHGYDOXHDQGDQDQG
JDWHSURGXFHVDVLJQDOZLWKDYDOXHDQGDUDQJHRIVWUHQJWKVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³5DQJHRIWKUHHVWUHQJWKVRIDGHILQHGYDOXH
:KHQWKHVLJQDOVIURPWKHXSSHUDQGORZHUFRQÀJXUDWLRQVLQ)LJXUHFRPELQHWKHUHVXOWLVDQXQNQRZQZLWKD
UDQJH[GHWHUPLQHGE\WKHH[WUHPHVRIWKHWZRVLJQDOVVKRZQLQ)LJXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³8QNQRZQYDOXHZLWKDUDQJHRIVWUHQJWKV
,Q )LJXUH UHSODFLQJ WKH SXOOGRZQ LQ WKH ORZHU FRQÀJXUDWLRQ ZLWK D VXSSO\ ZRXOG FKDQJH WKH UDQJH RI WKH
UHVXOWWRWKHUDQJH6W;GHVFULEHGLQ)LJXUH
7KHUDQJHLQ)LJXUHLVVWURQJ[EHFDXVHLWLVXQNQRZQDQGWKHH[WUHPHVRIERWKLWVFRPSRQHQWVDUHVWURQJ7KH
H[WUHPH RI WKH RXWSXW RI WKH ORZHU FRQÀJXUDWLRQ LV VWURQJ EHFDXVH WKH ORZHU SPRV UHGXFHV WKH VWUHQJWK RI WKH
VXSSO\VLJQDO7KLVPRGHOLQJIHDWXUHLVGLVFXVVHGLQ
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³6WURQJ;UDQJH
/RJLFJDWHVSURGXFHUHVXOWVZLWKDPELJXRXVVWUHQJWKVDVZHOODVWULVWDWHGULYHUV6XFKDFDVHDSSHDUVLQ)LJXUH
7KHDQGJDWH1LVGHFODUHGZLWKKLJK]VWUHQJWKDQG1LVGHFODUHGZLWKZHDNVWUHQJWK
D 1
6W+
E ;
DQGVWURQJKLJK]1DE
DQGVWURQJZHDN1FG
;
F G 1
:H
)LJXUH³$PELJXRXVVWUHQJWKIURPJDWHV
,Q)LJXUHUHJLVWHUEKDVDQXQVSHFLÀHGYDOXHVRLQSXWWRWKHXSSHUDQGJDWHLVVWURQJ[7KHXSSHUDQGJDWHKDV
DVWUHQJWKVSHFLÀFDWLRQLQFOXGLQJKLJK]7KHVLJQDOIURPWKHXSSHUDQGJDWHLVDVWURQJ+FRPSRVHGRIWKHYDOXHVDV
GHVFULEHGLQ)LJXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³$PELJXRXVVWUHQJWKVLJQDOIURPDJDWH
+L=LVSDUWRIWKHUHVXOWEHFDXVHWKHVWUHQJWKVSHFLÀFDWLRQIRUWKHJDWHLQTXHVWLRQVSHFLÀHGWKDWVWUHQJWKIRUDQRXW
SXWZLWKDYDOXH$VWUHQJWKVSHFLÀFDWLRQRWKHUWKDQKLJKLPSHGDQFHIRUWKHYDOXHRXWSXWUHVXOWVLQDJDWHRXWSXW
YDOXH[7KHRXWSXWRIWKHORZHUDQGJDWHLVDZHDNDVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³:HDN
:KHQWKHVLJQDOVFRPELQHWKHUHVXOWLVWKHUDQJH[DVGHVFULEHGLQ)LJXUH
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³$PELJXRXVVWUHQJWKLQFRPELQHGJDWHVLJQDOV
)LJXUHSUHVHQWVWKHFRPELQDWLRQRIDQDPELJXRXVVLJQDODQGDQXQDPELJXRXVVLJQDO6XFKFRPELQDWLRQVDUHWKH
WRSLFRI
$PELJXRXVVWUHQJWKVLJQDOVDQGXQDPELJXRXVVLJQDOV
7KHFRPELQDWLRQRIDVLJQDOZLWKXQDPELJXRXVVWUHQJWKDQGNQRZQYDOXHZLWKDQRWKHUVLJQDORIDPELJXRXVVWUHQJWK
SUHVHQWVVHYHUDOSRVVLEOHFDVHV7RXQGHUVWDQGDVHWRIUXOHVJRYHUQLQJWKLVW\SHRIFRPELQDWLRQLWLVQHFHVVDU\WRFRQ
VLGHUWKHVWUHQJWKOHYHOVRIWKHDPELJXRXVVWUHQJWKVLJQDOVHSDUDWHO\IURPHDFKRWKHUDQGUHODWLYHWRWKHXQDPELJXRXV
VWUHQJWKVLJQDO:KHQDVLJQDORINQRZQYDOXHDQGXQDPELJXRXVVWUHQJWKFRPELQHVZLWKDFRPSRQHQWRIDVLJQDORI
DPELJXRXVVWUHQJWKWKHVHVKDOOEHWKHHIIHFWV
D
7KH VWUHQJWK OHYHOV RI WKH DPELJXRXV VWUHQJWK VLJQDO WKDW DUH JUHDWHU WKDQ WKH VWUHQJWK OHYHO RI WKH
XQDPELJXRXVVLJQDOVKDOOUHPDLQLQWKHUHVXOW
E
7KHVWUHQJWKOHYHOVRIWKHDPELJXRXVVWUHQJWKVLJQDOWKDWDUHVPDOOHUWKDQRUHTXDOWRWKHVWUHQJWKOHYHORIWKH
XQDPELJXRXVVLJQDOVKDOOGLVDSSHDUIURPWKHUHVXOWVXEMHFWWRUXOHF
6HFWLRQ
,(((
6WG
F
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
,IWKHRSHUDWLRQRIUXOHDDQGUXOHEUHVXOWVLQDJDSLQVWUHQJWKOHYHOVEHFDXVHWKHVLJQDOVDUHRIRSSRVLWHYDOXH
WKHVLJQDOVLQWKHJDSVKDOOEHSDUWRIWKHUHVXOW
7KHIROORZLQJÀJXUHVVKRZVRPHDSSOLFDWLRQVRIWKHUXOHV
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
&RPELQLQJWKHWZRVLJQDOVDERYHUHVXOWVLQWKHIROORZLQJVLJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³(OLPLQDWLRQRIVWUHQJWKOHYHOV
,Q)LJXUHWKHVWUHQJWKOHYHOVLQWKHDPELJXRXVVWUHQJWKVLJQDOWKDWDUHVPDOOHUWKDQRUHTXDOWRWKHVWUHQJWKOHYHO
RIWKHXQDPELJXRXVVWUHQJWKVLJQDOGLVDSSHDUIURPWKHUHVXOWGHPRQVWUDWLQJUXOHE
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
&RPELQLQJWKHWZRVLJQDOVDERYHUHVXOWVLQWKHIROORZLQJVLJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³5HVXOWGHPRQVWUDWLQJDUDQJHDQGWKHHOLPLQDWLRQRIVWUHQJWKOHYHOVRIWZRYDOXHV
,Q)LJXUHUXOHVDEDQGFDSSO\7KHVWUHQJWKOHYHOVRIWKHDPELJXRXVVWUHQJWKVLJQDOWKDWDUHRIRSSRVLWHYDOXH
DQGOHVVHUVWUHQJWKWKDQWKHXQDPELJXRXVVWUHQJWKVLJQDOGLVDSSHDUIURPWKHUHVXOW7KHVWUHQJWKOHYHOVLQWKHDPELJX
RXVVWUHQJWKVLJQDOWKDWDUHOHVVWKDQWKHVWUHQJWKOHYHORIWKHXQDPELJXRXVVWUHQJWKVLJQDODQGRIWKHVDPHYDOXHGLV
DSSHDU IURP WKH UHVXOW 7KH VWUHQJWK OHYHO RI WKH XQDPELJXRXV VWUHQJWK VLJQDO DQG WKH JUHDWHU H[WUHPH RI WKH
DPELJXRXVVWUHQJWKVLJQDOGHÀQHDUDQJHLQWKHUHVXOW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
&RPELQLQJWKHWZRVLJQDOVDERYHUHVXOWVLQWKHIROORZLQJVLJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³5HVXOWGHPRQVWUDWLQJDUDQJHDQGWKHHOLPLQDWLRQRIVWUHQJWKOHYHOVRIRQHYDOXH
,Q)LJXUHUXOHVDDQGEDSSO\7KHVWUHQJWKOHYHOVLQWKHDPELJXRXVVWUHQJWKVLJQDOWKDWDUHOHVVWKDQWKHVWUHQJWK
OHYHORIWKHXQDPELJXRXVVWUHQJWKVLJQDOGLVDSSHDUIURPWKHUHVXOW7KHVWUHQJWKOHYHORIWKHXQDPELJXRXVVWUHQJWK
VLJQDODQGWKHVWUHQJWKOHYHODWWKHJUHDWHUH[WUHPHRIWKHDPELJXRXVVWUHQJWKVLJQDOGHÀQHDUDQJHLQWKHUHVXOW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
&RPELQLQJWKHWZRVLJQDOVDERYHUHVXOWVLQWKHIROORZLQJVLJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³$UDQJHRIERWKYDOXHV
,Q)LJXUHUXOHVDEDQGFDSSO\7KHJUHDWHUH[WUHPHRIWKHUDQJHRIVWUHQJWKVIRUWKHDPELJXRXVVWUHQJWKVLJQDO
LV ODUJHU WKDQ WKH VWUHQJWK OHYHO RI WKH XQDPELJXRXV VWUHQJWK VLJQDO 7KH UHVXOW LV D UDQJH GHÀQHG E\ WKH JUHDWHVW
VWUHQJWKLQWKHUDQJHRIWKHDPELJXRXVVWUHQJWKVLJQDODQGE\WKHVWUHQJWKOHYHORIWKHXQDPELJXRXVVWUHQJWKVLJQDO
:LUHGORJLFQHWW\SHV
7KH QHW W\SHV WULDQG ZDQG WULRU DQG ZRU VKDOO UHVROYH FRQÁLFWV ZKHQ PXOWLSOH GULYHUV KDYH WKH VDPH VWUHQJWK
7KHVHQHWW\SHVVKDOOUHVROYHVLJQDOYDOXHVE\WUHDWLQJVLJQDOVDVLQSXWVRIORJLFIXQFWLRQV
([DPSOHV
&RQVLGHUWKHFRPELQDWLRQRIWZRVLJQDOVRIXQDPELJXRXVVWUHQJWKLQ)LJXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
ZLUHG$1'ORJLFYDOXHUHVXOW ZLUHG25ORJLFYDOXHUHVXOW )LJXUH³:LUHGORJLFZLWKXQDPELJXRXVVWUHQJWKVLJQDOV
7KHFRPELQDWLRQRIWKHVLJQDOVLQ)LJXUHXVLQJZLUHGDQGORJLFSURGXFHVDUHVXOWZLWKWKHVDPHYDOXHDVWKH
UHVXOWSURGXFHGE\DQDQGJDWHZLWKWKHYDOXHRIWKHWZRVLJQDOVDVLWVLQSXWV7KHFRPELQDWLRQRIVLJQDOVXVLQJZLUHG
RUORJLFSURGXFHVDUHVXOWZLWKWKHVDPHYDOXHDVWKHUHVXOWSURGXFHGE\DQRUJDWHZLWKWKHYDOXHVRIWKHWZRVLJQDOV
DVLWVLQSXWV7KHVWUHQJWKRIWKHUHVXOWLVWKHVDPHDVWKHVWUHQJWKRIWKHFRPELQHGVLJQDOVLQERWKFDVHV,IWKHYDOXHRI
WKHXSSHUVLJQDOFKDQJHVVRWKDWERWKVLJQDOVLQ)LJXUHSRVVHVVDYDOXHWKHQWKHUHVXOWVRIERWKW\SHVRIORJLF
KDYHDYDOXH
:KHQDPELJXRXVVWUHQJWKVLJQDOVFRPELQHLQZLUHGORJLFLWLVQHFHVVDU\WRFRQVLGHUWKHUHVXOWVRIDOOFRPELQDWLRQVRI
HDFK RI WKH VWUHQJWK OHYHOV LQ WKH ÀUVW VLJQDO ZLWK HDFK RI WKH VWUHQJWK OHYHOV LQ WKH VHFRQG VLJQDO DV VKRZQ LQ
)LJXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
6LJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
6LJQDO
7KHFRPELQDWLRQVRIVWUHQJWKOHYHOVIRUDQGORJLFDSSHDULQWKH
IROORZLQJFKDUW
VLJQDO
VLJQDO
UHVXOW
VWUHQJWK
YDOXH
VWUHQJWK
YDOXH
VWUHQJWK
YDOXH
7KHUHVXOWLVWKHIROORZLQJVLJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
7KHFRPELQDWLRQVRIVWUHQJWKOHYHOVIRURUORJLFDSSHDULQWKH
IROORZLQJFKDUW
VLJQDO
VLJQDO
UHVXOW
VWUHQJWK
YDOXH
VWUHQJWK
YDOXH
VWUHQJWK
YDOXH
7KHUHVXOWLVWKHIROORZLQJVLJQDO
VWUHQJWK
VWUHQJWK
6X 6W 3X /D :H 0H 6P +L= +L= 6P 0H :H /D 3X 6W 6X
)LJXUH³:LUHGORJLFDQGDPELJXRXVVWUHQJWKV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6WUHQJWKUHGXFWLRQE\QRQUHVLVWLYHGHYLFHV
7KHQPRVSPRVDQGFPRVVZLWFKHVVKDOOSDVVWKHVWUHQJWKIURPWKHGDWDLQSXWWRWKHRXWSXWH[FHSWWKDWDVXSSO\
VWUHQJWKVKDOOEHUHGXFHGWRDVWURQJVWUHQJWK
7KHWUDQWUDQLIDQGWUDQLIVZLWFKHVVKDOOQRWDIIHFWVLJQDOVWUHQJWKDFURVVWKHELGLUHFWLRQDOWHUPLQDOVH[FHSWWKDW
DVXSSO\VWUHQJWKVKDOOEHUHGXFHGWRDVWURQJVWUHQJWK
6WUHQJWKUHGXFWLRQE\UHVLVWLYHGHYLFHV
7KH UQPRV USPRV UFPRV UWUDQ UWUDQLI DQG UWUDQLI GHYLFHV VKDOO UHGXFH WKH VWUHQJWK RI VLJQDOV WKDW SDVV
WKURXJKWKHPDFFRUGLQJWR7DEOH
7DEOH³6WUHQJWKUHGXFWLRQUXOHV
,QSXWVWUHQJWK
5HGXFHGVWUHQJWK
6XSSO\GULYH
3XOOGULYH
6WURQJGULYH
3XOOGULYH
3XOOGULYH
:HDNGULYH
/DUJHFDSDFLWRU
0HGLXPFDSDFLWRU
:HDNGULYH
0HGLXPFDSDFLWRU
0HGLXPFDSDFLWRU
6PDOOFDSDFLWRU
6PDOOFDSDFLWRU
6PDOOFDSDFLWRU
+LJKLPSHGDQFH
+LJKLPSHGDQFH
6WUHQJWKVRIQHWW\SHV
7KHWULWULVXSSO\DQGVXSSO\QHWW\SHVVKDOOJHQHUDWHVLJQDOVZLWKVSHFLÀFVWUHQJWKOHYHOV7KHWULUHJGHFODUD
WLRQFDQVSHFLI\HLWKHURIWZRVLJQDOVWUHQJWKOHYHOVRWKHUWKDQDGHIDXOWVWUHQJWKOHYHO
7ULDQGWULQHWVWUHQJWKV
7KHWULQHWW\SHPRGHOVDQHWFRQQHFWHGWRDUHVLVWLYHSXOOGRZQGHYLFH,QWKHDEVHQFHRIDQRYHUULGLQJVRXUFHVXFK
DVLJQDOVKDOOKDYHDYDOXHDQGDSXOOVWUHQJWK7KHWULQHWW\SHPRGHOVDQHWFRQQHFWHGWRDUHVLVWLYHSXOOXSGHYLFH
,QWKHDEVHQFHRIDQRYHUULGLQJVRXUFHVXFKDVLJQDOVKDOOKDYHDYDOXHDQGDSXOOVWUHQJWK
7ULUHJVWUHQJWK
7KHWULUHJQHWW\SHPRGHOVFKDUJHVWRUDJHQRGHV7KHVWUHQJWKRIWKHGULYHUHVXOWLQJIURPDWULUHJQHWWKDWLVLQWKH
FKDUJHVWRUDJHVWDWHWKDWLVDGULYHUFKDUJHGWKHQHWDQGWKHQZHQWWRKLJKLPSHGDQFHVKDOOEHRQHRIWKHVHWKUHH
VWUHQJWKVODUJHPHGLXPRUVPDOO7KHVSHFLÀFVWUHQJWKDVVRFLDWHGZLWKDSDUWLFXODUWULUHJQHWVKDOOEHVSHFLÀHGE\
WKHXVHULQWKHQHWGHFODUDWLRQ7KHGHIDXOWVKDOOEHPHGLXP7KHV\QWD[RIWKLVVSHFLÀFDWLRQLVGHVFULEHGLQ
6XSSO\DQGVXSSO\QHWVWUHQJWKV
7KHVXSSO\QHWW\SHPRGHOVJURXQGFRQQHFWLRQV7KHVXSSO\QHWW\SHPRGHOVFRQQHFWLRQVWRSRZHUVXSSOLHV7KH
VXSSO\DQGVXSSO\QHWW\SHVVKDOOKDYHVXSSO\GULYLQJVWUHQJWKV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
*DWHDQGQHWGHOD\V
*DWHDQGQHWGHOD\VSURYLGHDPHDQVRIPRUHDFFXUDWHO\GHVFULELQJGHOD\VWKURXJKDFLUFXLW7KHJDWHGHOD\VVSHFLI\
WKHVLJQDOSURSDJDWLRQGHOD\IURPDQ\JDWHLQSXWWRWKHJDWHRXWSXW8SWRWKUHHYDOXHVSHURXWSXWUHSUHVHQWLQJULVH
IDOODQGWXUQRIIGHOD\VFDQEHVSHFLÀHGVHHWKURXJK
1HW GHOD\V UHIHU WR WKH WLPH LW WDNHV IURP DQ\ GULYHU RQ WKH QHW FKDQJLQJ YDOXH WR WKH WLPH ZKHQ WKH QHW YDOXH LV
XSGDWHGDQGSURSDJDWHGIXUWKHU8SWRWKUHHGHOD\YDOXHVSHUQHWFDQEHVSHFLÀHG
)RUERWKJDWHVDQGQHWVWKHGHIDXOWGHOD\VKDOOEH]HURZKHQQRGHOD\VSHFLÀFDWLRQLVJLYHQ:KHQRQHGHOD\YDOXHLV
JLYHQWKHQWKLVYDOXHVKDOOEHXVHGIRUDOOSURSDJDWLRQGHOD\VDVVRFLDWHGZLWKWKHJDWHRUWKHQHW:KHQWZRGHOD\VDUH
JLYHQWKHÀUVWGHOD\VKDOOVSHFLI\WKHULVHGHOD\DQGWKHVHFRQGGHOD\VKDOOVSHFLI\WKHIDOOGHOD\7KHGHOD\ZKHQWKH
VLJQDOFKDQJHVWRKLJKLPSHGDQFHRUWRXQNQRZQVKDOOEHWKHOHVVHURIWKHWZRGHOD\YDOXHV
)RUDWKUHHGHOD\VSHFLÀFDWLRQ
³ 7KHÀUVWGHOD\UHIHUVWRWKHWUDQVLWLRQWRWKHYDOXHULVHGHOD\
³ 7KHVHFRQGGHOD\UHIHUVWRWKHWUDQVLWLRQWRWKHYDOXHIDOOGHOD\
³ 7KHWKLUGGHOD\UHIHUVWRWKHWUDQVLWLRQWRWKHKLJKLPSHGDQFHYDOXH
:KHQDYDOXHFKDQJHVWRWKHXQNQRZQ[YDOXHWKHGHOD\LVWKHVPDOOHVWRIWKHWKUHHGHOD\V7KHVWUHQJWKRIWKHLQSXW
VLJQDOVKDOOQRWDIIHFWWKHSURSDJDWLRQGHOD\IURPDQLQSXWWRDQRXWSXW
7DEOHVXPPDUL]HVWKHIURPWRSURSDJDWLRQGHOD\FKRLFHIRUWKHWZRDQGWKUHHGHOD\VSHFLÀFDWLRQV
7DEOH³5XOHVIRUSURSDJDWLRQGHOD\V
'HOD\XVHGLIWKHUHDUH
)URPYDOXH
7RYDOXH
GHOD\V
GHOD\V
G
G
[
PLQGG
PLQGGG
]
PLQGG
G
G
G
[
PLQGG
PLQGGG
]
PLQGG
G
[
G
G
[
G
G
[
]
PLQGG
G
]
G
G
]
G
G
]
[
PLQGG
PLQGGG
([DPSOHV
([DPSOH³7KHIROORZLQJLVDQH[DPSOHRIDGHOD\VSHFLÀFDWLRQZLWKRQHWZRDQGWKUHHGHOD\V
DQGDRXWLQLQ
6HFWLRQ
RQO\RQHGHOD\
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DQGDRXWLQLQ
ULVHDQGIDOOGHOD\V
EXILIERXWLQFWUOULVHIDOODQGWXUQRIIGHOD\V
([DPSOH³7KHIROORZLQJH[DPSOHVSHFLÀHVDVLPSOHODWFKPRGXOHZLWKWULVWDWHRXWSXWVZKHUHLQGLYLGXDOGHOD\V
DUHJLYHQWRWKHJDWHV7KHSURSDJDWLRQGHOD\IURPWKHSULPDU\LQSXWVWRWKHRXWSXWVRIWKHPRGXOHZLOOEHFXPXODWLYH
DQGLWGHSHQGVRQWKHVLJQDOSDWKWKURXJKWKHQHWZRUN
PRGXOHWULBODWFKTRXWQTRXWFORFNGDWDHQDEOH
RXWSXWTRXWQTRXW
LQSXWFORFNGDWDHQDEOH
WULTRXWQTRXW
QRW
QDQG
QDQG
EXILI
QQGDWDGDWD
QZDGDWDFORFN
QZEQGDWDFORFN
QTQTZD
QQTTZE
TBGULYHTRXWTHQDEOH
QTBGULYHQTRXWQTHQDEOH
HQGPRGXOH
0LQW\SPD[GHOD\V
7KH V\QWD[ IRU GHOD\V RQ JDWH SULPLWLYHV LQFOXGLQJ XVHUGHÀQHG SULPLWLYHV VHH 6HFWLRQ QHWV DQG FRQWLQXRXV
DVVLJQPHQWVVKDOODOORZWKUHHYDOXHVHDFKIRUWKHULVLQJIDOOLQJDQGWXUQRIIGHOD\V7KHPLQLPXPW\SLFDODQGPD[
LPXPYDOXHVIRUHDFKGHOD\VKDOOEHVSHFLÀHGDVFRQVWDQWH[SUHVVLRQVVHSDUDWHGE\FRORQV7KHUHVKDOOEHQRUHTXLUHG
UHODWLRQHJPLQ)W\S)PD[EHWZHHQWKHH[SUHVVLRQVIRUPLQLPXPW\SLFDODQGPD[LPXPGHOD\V7KHVHFDQEH
DQ\WKUHHFRQVWDQWH[SUHVVLRQV
([DPSOHV
7KHIROORZLQJH[DPSOHVKRZVPLQW\SPD[YDOXHVIRUULVLQJIDOOLQJDQGWXUQRIIGHOD\V
PRGXOHLREXILRLRGLU
EXILIELRLRGLU
EXILIELRLRGLU
HQGPRGXOH
7KHV\QWD[IRUGHOD\FRQWUROVLQSURFHGXUDOVWDWHPHQWVVHHDOVRDOORZVPLQLPXPW\SLFDODQGPD[LPXPYDOXHV
7KHVHDUHVSHFLÀHGE\H[SUHVVLRQVVHSDUDWHGE\FRORQV7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKLVFRQFHSW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
SDUDPHWHUPLQBKL W\SBKL PD[BKL UHJFON
DOZD\VEHJLQ
FON PLQBKLW\SBKLPD[BKLFON HQG
7ULUHJQHWFKDUJHGHFD\
/LNHDOOQHWVWKHGHOD\VSHFLÀFDWLRQLQDWULUHJQHWGHFODUDWLRQFDQFRQWDLQXSWRWKUHHGHOD\V7KHÀUVWWZRGHOD\V
VKDOOVSHFLI\WKHGHOD\IRUWUDQVLWLRQWRWKHDQGORJLFVWDWHVZKHQWKHWULUHJQHWLVGULYHQWRWKHVHVWDWHVE\DGULYHU
7KHWKLUGGHOD\VKDOOVSHFLI\WKHFKDUJHGHFD\WLPHLQVWHDGRIWKHGHOD\LQDWUDQVLWLRQWRWKH]ORJLFVWDWH7KHFKDUJH
GHFD\WLPHVSHFLÀHVWKHGHOD\EHWZHHQZKHQWKHGULYHUVRIDWULUHJQHWWXUQRIIDQGZKHQLWVVWRUHGFKDUJHFDQQR
ORQJHUEHGHWHUPLQHG
$WULUHJQHWGRHVQRWQHHGDWXUQRIIGHOD\VSHFLÀFDWLRQEHFDXVHDWULUHJQHWQHYHUPDNHVDWUDQVLWLRQWRWKH]ORJLF
VWDWH:KHQWKHGULYHUVRIDWULUHJQHWPDNHWUDQVLWLRQVIURPWKHRU[ORJLFVWDWHVWRRIIWKHWULUHJQHWVKDOOUHWDLQ
WKHSUHYLRXVRU[ORJLFVWDWHWKDWZDVRQLWVGULYHUV7KH]YDOXHVKDOOQRWSURSDJDWHIURPWKHGULYHUVRIDWULUHJ
QHWWRDWULUHJQHW$WULUHJQHWFDQRQO\KROGD]ORJLFVWDWHZKHQ]LVWKHLQLWLDOORJLFVWDWHRIWKHWULUHJQHWRUZKHQ
WKHWULUHJQHWLVIRUFHGWRWKH]VWDWHZLWKDIRUFHVWDWHPHQWVHH
$GHOD\VSHFLÀFDWLRQIRUFKDUJHGHFD\PRGHOVDFKDUJHVWRUDJHQRGHWKDWLVQRWLGHDO³DFKDUJHVWRUDJHQRGHZKRVH
FKDUJHOHDNVRXWWKURXJKLWVVXUURXQGLQJGHYLFHVDQGFRQQHFWLRQV
7KHIROORZLQJVXEFODXVHVGHVFULEHWKHFKDUJHGHFD\SURFHVVDQGWKHGHOD\VSHFLÀFDWLRQIRUFKDUJHGHFD\
7KHFKDUJHGHFD\SURFHVV
&KDUJHGHFD\LVWKHFDXVHRIWUDQVLWLRQRIDRUWKDWLVVWRUHGLQDWULUHJQHWWRDQXQNQRZQYDOXH[DIWHUDVSHFL
ÀHGGHOD\7KHFKDUJHGHFD\SURFHVVVKDOOEHJLQZKHQWKHGULYHUVRIWKHWULUHJQHWWXUQRIIDQGWKHWULUHJQHWVWDUWVWR
KROGFKDUJH7KHFKDUJHGHFD\SURFHVVVKDOOHQGXQGHUWKHIROORZLQJWZRFRQGLWLRQV
D
7KHGHOD\VSHFLÀHGE\FKDUJHGHFD\WLPHHODSVHVDQGWKHWULUHJQHWPDNHVDWUDQVLWLRQIURPRUWR[
E
7KHGULYHUVRIWULUHJQHWWXUQRQDQGSURSDJDWHDRU[LQWRWKHWULUHJQHW
7KHGHOD\VSHFLÀFDWLRQIRUFKDUJHGHFD\WLPH
7KHWKLUGGHOD\LQDWULUHJQHWGHFODUDWLRQVKDOOVSHFLI\WKHFKDUJHGHFD\WLPH$WKUHHYDOXHGGHOD\VSHFLÀFDWLRQLQD
WULUHJQHWGHFODUDWLRQVKDOOKDYHWKHIROORZLQJIRUP
GGG
ULVHBGHOD\IDOOBGHOD\FKDUJHBGHFD\BWLPH
7KHFKDUJHGHFD\WLPHVSHFLÀFDWLRQLQDWULUHJQHWGHFODUDWLRQVKDOOEHSUHFHGHGE\DULVHDQGDIDOOGHOD\VSHFLÀFD
WLRQ
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVDVSHFLÀFDWLRQRIWKHFKDUJHGHFD\WLPHLQDWULUHJQHWGHFODUDWLRQ
WULUHJODUJHFDS
7KLVH[DPSOHGHFODUHVDWULUHJQHWQDPHGFDS7KLVWULUHJQHWVWRUHVDODUJHFKDUJH7KHGHOD\VSHFLÀFDWLRQVIRU
WKHULVHGHOD\LVWKHIDOOGHOD\LVDQGWKHFKDUJHGHFD\WLPHVSHFLÀFDWLRQLVWLPHXQLWV
6HFWLRQ
,(((
6WG
([DPSOH³7KHQH[WH[DPSOHSUHVHQWVDVRXUFHGHVFULSWLRQÀOHWKDWFRQWDLQVDWULUHJQHWGHFODUDWLRQZLWKDFKDUJH
GHFD\WLPHVSHFLÀFDWLRQ)LJXUHVKRZVDQHTXLYDOHQWVFKHPDWLFIRUWKHVRXUFHGHVFULSWLRQ
JDWH
GDWD
QPRV
WULUHJ
)LJXUH³7ULUHJQHWZLWKFDSDFLWDQFH
PRGXOHFDSDFLWRU
UHJGDWDJDWH
WULUHJGHFODUDWLRQZLWKDFKDUJHGHFD\WLPHRIWLPHXQLWV
WULUHJODUJHFDS
QPRVQPRVFDSGDWDJDWHQPRVWKDWGULYHVWKHWULUHJ
LQLWLDOEHJLQ
PRQLWRUGGDWD YJDWH YFDS YWLPHGDWDJDWHFDS
GDWD 7RJJOHWKHGULYHURIWKHFRQWUROLQSXWWRWKHQPRVVZLWFK
JDWH JDWH JDWH JDWH ILQLVK
HQG
HQGPRGXOH
6HFWLRQ
,(((
6WG
6HFWLRQ
8VHUGHÀQHGSULPLWLYHV8'3V
7KLVVHFWLRQGHVFULEHVDPRGHOLQJWHFKQLTXHWRDXJPHQWWKHVHWRISUHGHÀQHGJDWHSULPLWLYHVE\GHVLJQLQJDQGVSHFL
I\LQJ QHZ SULPLWLYH HOHPHQWV FDOOHG XVHUGHÀQHG SULPLWLYHV 8'3V ,QVWDQFHV RI WKHVH QHZ 8'3V FDQ EH XVHG LQ
H[DFWO\WKHVDPHPDQQHUDVWKHJDWHSULPLWLYHVWRUHSUHVHQWWKHFLUFXLWEHLQJPRGHOHG
7KHIROORZLQJWZRW\SHVRIEHKDYLRUFDQEHUHSUHVHQWHGLQDXVHUGHÀQHGSULPLWLYH
D
E
&RPELQDWLRQDO³PRGHOHGE\DFRPELQDWLRQDO8'3
6HTXHQWLDO³PRGHOHGE\DVHTXHQWLDO8'3
$FRPELQDWLRQDO8'3XVHVWKHYDOXHRILWVLQSXWVWRGHWHUPLQHWKHQH[WYDOXHRILWVRXWSXW$VHTXHQWLDO8'3XVHVWKH
YDOXHRILWVLQSXWVDQGWKHFXUUHQWYDOXHRILWVRXWSXWWRGHWHUPLQHWKHYDOXHRILWVRXWSXW6HTXHQWLDO8'3VSURYLGHD
ZD\WRPRGHOVHTXHQWLDOFLUFXLWVVXFKDVÁLSÁRSVDQGODWFKHV$VHTXHQWLDO8'3FDQPRGHOERWKOHYHOVHQVLWLYHDQG
HGJHVHQVLWLYHEHKDYLRU
(DFK8'3KDVH[DFWO\RQHRXWSXWZKLFKFDQEHLQRQHRIWKUHHVWDWHV RU [7KHWULVWDWHYDOXH ]LVQRWVXS
SRUWHG,QVHTXHQWLDO8'3VWKHRXWSXWDOZD\VKDVWKHVDPHYDOXHDVWKHLQWHUQDOVWDWH
7KH]YDOXHVSDVVHGWR8'3LQSXWVVKDOOEHWUHDWHGWKHVDPHDV[YDOXHV
8'3GHILQLWLRQ
8'3GHÀQLWLRQVDUHLQGHSHQGHQWRIPRGXOHVWKH\DUHDWWKHVDPHOHYHODVPRGXOHGHÀQLWLRQVLQWKHV\QWD[KLHUDUFK\
7KH\FDQDSSHDUDQ\ZKHUHLQWKHVRXUFHWH[WHLWKHUEHIRUHRUDIWHUWKH\DUHLQVWDQWLDWHGLQVLGHDPRGXOH7KH\VKDOO
QRWDSSHDUEHWZHHQWKHNH\ZRUGVPRGXOHDQGHQGPRGXOH
127(³,PSOHPHQWDWLRQVPD\OLPLWWKHPD[LPXPQXPEHURI8'3GHÀQLWLRQVLQDPRGHOEXWWKH\VKDOODOORZDWOHDVW
7KHIRUPDOV\QWD[RIWKH8'3GHÀQLWLRQLVJLYHQLQ6\QWD[
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
XGSBGHFODUDWLRQ SULPLWLYHXGSBLGHQWLILHUXGSBSRUWBOLVW
XGSBSRUWBGHFODUDWLRQ^XGSBSRUWBGHFODUDWLRQ`
XGSBERG\
HQGSULPLWLYH
XGSBSRUWBOLVW RXWSXWBSRUWBLGHQWLILHULQSXWBSRUWBLGHQWLILHU^LQSXWBSRUWBLGHQWLILHU`
XGSBSRUWBGHFODUDWLRQ RXWSXWBGHFODUDWLRQ
_LQSXWBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
XGSBERG\ FRPELQDWLRQDOBERG\_VHTXHQWLDOBERG\
FRPELQDWLRQDOBERG\ WDEOHFRPELQDWLRQDOBHQWU\^FRPELQDWLRQDOBHQWU\`HQGWDEOH
FRPELQDWLRQDOBHQWU\ OHYHOBLQSXWBOLVWRXWSXWBV\PERO
VHTXHQWLDOBERG\ >XGSBLQLWLDOBVWDWHPHQW@WDEOHVHTXHQWLDOBHQWU\^VHTXHQWLDOBHQWU\`
HQGWDEOH
XGSBLQLWLDOBVWDWHPHQW LQLWLDOXGSBRXWSXWBSRUWBLGHQWLILHU LQLWBYDO
LQLWBYDO ·E_·E_·E[_·E;_·%_·%_·%[_·%;__
VHTXHQWLDOBHQWU\ VHTBLQSXWBOLVWFXUUHQWBVWDWHQH[WBVWDWH
VHTBLQSXWBOLVW OHYHOBLQSXWBOLVW_HGJHBLQSXWBOLVW
OHYHOBLQSXWBOLVW OHYHOBV\PERO^OHYHOBV\PERO`
HGJHBLQSXWBOLVW ^OHYHOBV\PERO`HGJHBLQGLFDWRU^OHYHOBV\PERO`
HGJHBLQGLFDWRU OHYHOBV\PEROOHYHOBV\PERO_HGJHBV\PERO
FXUUHQWBVWDWH OHYHOBV\PERO
QH[WBVWDWH RXWSXWBV\PERO_
RXWSXWBV\PERO __[_;
OHYHOBV\PERO __[_;_"_E_%
6\QWD[³6\QWD[IRUXVHUGHILQHGSULPLWLYHV
8'3KHDGHU
$8'3GHÀQLWLRQVKDOOEHJLQZLWKWKHNH\ZRUG SULPLWLYHIROORZHGE\DQLGHQWLÀHUZKLFKLVWKHQDPHRIWKH8'3
7KLVLQWXUQLVIROORZHGE\DFRPPDVHSDUDWHGOLVWRISRUWVHQFORVHGLQSDUHQWKHVHVZKLFKLVIROORZHGE\DVHPLFR
ORQ7KH8'3GHÀQLWLRQKHDGHULVIROORZHGE\SRUWGHFODUDWLRQVDQGDVWDWHWDEOH7KH8'3GHÀQLWLRQVKDOOEHWHUPL
QDWHGE\WKHNH\ZRUGHQGSULPLWLYH
8'3VKDYHPXOWLSOHLQSXWSRUWVDQGH[DFWO\RQHRXWSXWSRUWELGLUHFWLRQDOLQRXWSRUWVDUHQRWSHUPLWWHGRQ8'3V$OO
SRUWVRID8'3VKDOOEHVFDODUYHFWRUSRUWVDUHQRWSHUPLWWHG
7KHRXWSXWSRUWVKDOOEHWKHÀUVWSRUWLQWKHSRUWOLVW
8'3SRUWGHFODUDWLRQV
8'3VVKDOOFRQWDLQLQSXWDQGRXWSXWSRUWGHFODUDWLRQV7KHRXWSXWSRUWGHFODUDWLRQEHJLQVZLWKWKHNH\ZRUGRXWSXW
IROORZHGE\RQHRXWSXWSRUWQDPH7KHLQSXWSRUWGHFODUDWLRQEHJLQVZLWKWKHNH\ZRUG LQSXWIROORZHGE\RQHRU
PRUHLQSXWSRUWQDPHV
6HTXHQWLDO8'3VVKDOOFRQWDLQDUHJGHFODUDWLRQIRUWKHRXWSXWSRUW&RPELQDWLRQDO8'3VFDQQRWFRQWDLQDUHJGHFOD
UDWLRQ7KHLQLWLDOYDOXHRIWKHRXWSXWSRUWFDQEHVSHFLÀHGLQDQLQLWLDOVWDWHPHQWLQDVHTXHQWLDO8'3VHH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
127(³,PSOHPHQWDWLRQVPD\OLPLWWKHPD[LPXPQXPEHURILQSXWVWRD8'3EXWWKH\VKDOODOORZDWOHDVWLQSXWVIRUVHTXHQWLDO
8'3VDQGLQSXWVIRUFRPELQDWLRQDO8'3V
6HTXHQWLDO8'3LQLWLDOVWDWHPHQW
7KHVHTXHQWLDO8'3LQLWLDOVWDWHPHQWVSHFLÀHVWKHYDOXHRIWKHRXWSXWSRUWZKHQVLPXODWLRQEHJLQV7KLVVWDWHPHQW
EHJLQVZLWKWKHNH\ZRUGLQLWLDO7KHVWDWHPHQWWKDWIROORZVVKDOOEHDQDVVLJQPHQWVWDWHPHQWWKDWDVVLJQVDVLQJOHELW
OLWHUDOYDOXHWRWKHRXWSXWSRUW
8'3VWDWHWDEOH
7KHVWDWHWDEOHGHÀQHVWKHEHKDYLRURID8'3,WEHJLQVZLWKWKHNH\ZRUG WDEOHDQGLVWHUPLQDWHGZLWKWKHNH\ZRUG
HQGWDEOH(DFKURZRIWKHWDEOHLVWHUPLQDWHGE\DVHPLFRORQ
(DFKURZRIWKHWDEOHLVFUHDWHGXVLQJDYDULHW\RIFKDUDFWHUVVHH7DEOHZKLFKLQGLFDWHLQSXWYDOXHVDQGRXWSXW
VWDWH7KUHHVWDWHV³DQG[³DUHVXSSRUWHG7KH]VWDWHLVH[SOLFLWO\H[FOXGHGIURPFRQVLGHUDWLRQLQXVHUGHÀQHG
SULPLWLYHV$QXPEHURIVSHFLDOFKDUDFWHUVDUHGHÀQHGWRUHSUHVHQWFHUWDLQFRPELQDWLRQVRIVWDWHSRVVLELOLWLHV7KHVH
DUHGHVFULEHGLQ7DEOH
7KHRUGHURIWKHLQSXWVWDWHÀHOGVRIHDFKURZRIWKHVWDWHWDEOHLVWDNHQGLUHFWO\IURPWKHSRUWOLVWLQWKH8'3GHÀQL
WLRQKHDGHU,WLVQRWUHODWHGWRWKHRUGHURIWKHLQSXWSRUWGHFODUDWLRQV
&RPELQDWLRQDO8'3VKDYHRQHÀHOGSHULQSXWDQGRQHÀHOGIRUWKHRXWSXW7KHLQSXWÀHOGVDUHVHSDUDWHGIURPWKHRXW
SXWÀHOGE\DFRORQ(DFKURZGHÀQHVWKHRXWSXWIRUDSDUWLFXODUFRPELQDWLRQRIWKHLQSXWYDOXHVVHH
6HTXHQWLDO8'3VKDYHDQDGGLWLRQDOÀHOGLQVHUWHGEHWZHHQWKHLQSXWÀHOGVDQGWKHRXWSXWÀHOG7KLVDGGLWLRQDOÀHOG
UHSUHVHQWVWKHFXUUHQWVWDWHRIWKH8'3DQGLVFRQVLGHUHGHTXLYDOHQWWRWKHFXUUHQWRXWSXWYDOXH,WLVGHOLPLWHGE\
FRORQV(DFKURZGHÀQHVWKHRXWSXWEDVHGRQWKHFXUUHQWVWDWHSDUWLFXODUFRPELQDWLRQVRILQSXWYDOXHVDQGDWPRVW
RQHLQSXWWUDQVLWLRQVHH$URZVXFKDVWKHRQHVKRZQEHORZLVLOOHJDO
,IDOOLQSXWYDOXHVDUHVSHFLÀHGDV[WKHQWKHRXWSXWVWDWHVKDOOEHVSHFLÀHGDV[
,WLVQRWQHFHVVDU\WRH[SOLFLWO\VSHFLI\HYHU\SRVVLEOHLQSXWFRPELQDWLRQ$OOFRPELQDWLRQVRILQSXWYDOXHVWKDWDUHQRW
H[SOLFLWO\VSHFLÀHGUHVXOWLQDGHIDXOWRXWSXWVWDWHRI[
,WLVLOOHJDOWRKDYHWKHVDPHFRPELQDWLRQRILQSXWVLQFOXGLQJHGJHVVSHFLÀHGIRUGLIIHUHQWRXWSXWV
=YDOXHVLQ8'3
7KH]YDOXHLQDWDEOHHQWU\LVQRWVXSSRUWHGDQGLWLVFRQVLGHUHGLOOHJDO7KH]YDOXHVSDVVHGWR8'3LQSXWVVKDOOEH
WUHDWHGWKHVDPHDV[YDOXHV
6XPPDU\RIV\PEROV
7RLPSURYHWKHUHDGDELOLW\DQGWRHDVHZULWLQJRIWKHVWDWHWDEOHVHYHUDOVSHFLDOV\PEROVDUHSURYLGHG7DEOHVXP
PDUL]HVWKHPHDQLQJRIDOOWKHYDOXHV\PEROVWKDWDUHYDOLGLQWKHWDEOHSDUWRID8'3GHÀQLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³8'3WDEOHV\PEROV
6\PERO
,QWHUSUHWDWLRQ
&RPPHQWV
/RJLF
/RJLF
[
8QNQRZQ
3HUPLWWHGLQWKHLQSXWÀHOGVRIDOO
8'3VDQGLQWKHFXUUHQWVWDWHÀHOG
RIVHTXHQWLDO8'3V1RWSHUPLWWHG
LQWKHRXWSXWÀHOG
"
,WHUDWLRQRIDQG[
1RWSHUPLWWHGLQRXWSXWÀHOG
E
,WHUDWLRQRIDQG
3HUPLWWHGLQWKHLQSXWÀHOGVRIDOO
8'3VDQGLQWKHFXUUHQWVWDWHÀHOG
RIVHTXHQWLDO8'3V1RWSHUPLWWHG
LQWKHRXWSXWÀHOG
1RFKDQJH
3HUPLWWHGRQO\LQWKHRXWSXWÀHOGRI
DVHTXHQWLDO8'3
YZ
9DOXHFKDQJHIURPYWRZ
YDQGZFDQEHDQ\RQHRI
["RUEDQGDUHRQO\SHUPLWWHG
LQWKHLQSXWILHOG
6DPHDV""
$Q\YDOXHFKDQJHRQLQSXW
U
6DPHDV
5LVLQJHGJHRQLQSXW
I
6DPHDV
)DOOLQJHGJHRQLQSXW
S
,WHUDWLRQRI[DQG[
3RWHQWLDOSRVLWLYHHGJHRQWKHLQSXW
Q
,WHUDWLRQRI[DQG[
3RWHQWLDOQHJDWLYHHGJHRQWKHLQSXW
&RPELQDWLRQDO8'3V
,QFRPELQDWLRQDO8'3VWKHRXWSXWVWDWHLVGHWHUPLQHGVROHO\DVDIXQFWLRQRIWKHFXUUHQWLQSXWVWDWHV:KHQHYHUDQ
LQSXWVWDWHFKDQJHVWKH8'3LVHYDOXDWHGDQGWKHRXWSXWVWDWHLVVHWWRWKHYDOXHLQGLFDWHGE\WKHURZLQWKHVWDWHWDEOH
WKDWPDWFKHVDOOWKHLQSXWVWDWHV$OOFRPELQDWLRQVRIWKHLQSXWVWKDWDUHQRWH[SOLFLWO\VSHFLÀHGZLOOGULYHWKHRXWSXW
VWDWHWRWKHXQNQRZQYDOXH[
([DPSOHV
7KHIROORZLQJH[DPSOHGHÀQHVDPXOWLSOH[HUZLWKWZRGDWDLQSXWVDQGDFRQWUROLQSXW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
SULPLWLYHPXOWLSOH[HUPX[FRQWUROGDWD$GDWD%
RXWSXWPX[
LQSXWFRQWUROGDWD$GDWD%
WDEOH
FRQWUROGDWD$GDWD%PX[
[ [ [
[
[
[
HQGWDEOH
HQGSULPLWLYH
7KH ÀUVW HQWU\ LQ WKLV H[DPSOH FDQ EH H[SODLQHG DV IROORZV ZKHQ FRQWURO HTXDOV DQG GDWD$ HTXDOV DQG
GDWD%HTXDOVWKHQRXWSXWPX[HTXDOV
7KHLQSXWFRPELQDWLRQ[[FRQWURO GDWD$ [ GDWD% [LVQRWVSHFLÀHG,IWKLVFRPELQDWLRQRFFXUV
GXULQJVLPXODWLRQWKHYDOXHRIRXWSXWSRUWPX[ZLOOEHFRPH[
8VLQJ"WKHGHVFULSWLRQRIDPXOWLSOH[HUFDQEHDEEUHYLDWHGDV
SULPLWLYHPXOWLSOH[HUPX[FRQWUROGDWD$GDWD%
RXWSXWPX[
LQSXWFRQWUROGDWD$GDWD%
WDEOH
FRQWUROGDWD$GDWD%PX[
" " [
" "
"
[
[
HQGWDEOH
HQGSULPLWLYH
/HYHOVHQVLWLYHVHTXHQWLDO8'3V
/HYHOVHQVLWLYHVHTXHQWLDOEHKDYLRULVUHSUHVHQWHGWKHVDPHZD\DVFRPELQDWLRQDOEHKDYLRUH[FHSWWKDWWKHRXWSXWLV
GHFODUHGWREHRIW\SHUHJDQGWKHUHLVDQDGGLWLRQDOÀHOGLQHDFKWDEOHHQWU\7KLVQHZÀHOGUHSUHVHQWVWKHFXUUHQW
VWDWHRIWKH8'37KHRXWSXWÀHOGLQDVHTXHQWLDO8'3UHSUHVHQWVWKHQH[WVWDWH
([DPSOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
&RQVLGHUWKHH[DPSOHRIDODWFK
SULPLWLYHODWFKTFORFNGDWD
RXWSXWTUHJT
LQSXWFORFNGDWD
WDEOH
FORFNGDWD T
T
" " "" QRFKDQJH
HQGWDEOH
HQGSULPLWLYH
7KLVGHVFULSWLRQGLIIHUVIURPDFRPELQDWLRQDO8'3PRGHOLQWZRZD\V)LUVWWKHRXWSXWLGHQWLÀHUTKDVDQDGGLWLRQDO
UHJGHFODUDWLRQWRLQGLFDWHWKDWWKHUHLVDQLQWHUQDOVWDWHT7KHRXWSXWYDOXHRIWKH8'3LVDOZD\VWKHVDPHDVWKH
LQWHUQDOVWDWH6HFRQGDÀHOGIRUWKHFXUUHQWVWDWHZKLFKLVVHSDUDWHGE\FRORQVIURPWKHLQSXWVDQGWKHRXWSXWKDV
EHHQDGGHG
(GJHVHQVLWLYHVHTXHQWLDO8'3V
,QOHYHOVHQVLWLYHEHKDYLRUWKHYDOXHVRIWKHLQSXWVDQGWKHFXUUHQWVWDWHDUHVXIÀFLHQWWRGHWHUPLQHWKHRXWSXWYDOXH
(GJHVHQVLWLYHEHKDYLRUGLIIHUVLQWKDWFKDQJHVLQWKHRXWSXWDUHWULJJHUHGE\VSHFLÀFWUDQVLWLRQVRIWKHLQSXWV7KLV
PDNHVWKHVWDWHWDEOHDWUDQVLWLRQWDEOH
(DFKWDEOHHQWU\FDQKDYHDWUDQVLWLRQVSHFLÀFDWLRQRQDWPRVWRQHLQSXW$WUDQVLWLRQLVVSHFLÀHGE\DSDLURIYDOXHVLQ
SDUHQWKHVLVVXFKDVRUDWUDQVLWLRQV\PEROVXFKDVU(QWULHVVXFKDVWKHIROORZLQJDUHLOOHJDO
$OOWUDQVLWLRQVWKDWGRQRWDIIHFWWKHRXWSXWVKDOOEHH[SOLFLWO\VSHFLÀHG2WKHUZLVHVXFKWUDQVLWLRQVFDXVHWKHYDOXHRI
WKHRXWSXWWRFKDQJHWR[$OOXQVSHFLÀHGWUDQVLWLRQVGHIDXOWWRWKHRXWSXWYDOXH[
,IWKHEHKDYLRURIWKH8'3LVVHQVLWLYHWRHGJHVRIDQ\LQSXWWKHGHVLUHGRXWSXWVWDWHVKDOOEHVSHFLÀHGIRUDOOHGJHVRI
DOOLQSXWV
([DPSOH
7KHIROORZLQJH[DPSOHGHVFULEHVDULVLQJHGJH'ÁLSÁRS
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
SULPLWLYHGBHGJHBIITFORFNGDWD
RXWSXWTUHJT
LQSXWFORFNGDWD
WDEOH
FORFNGDWD
T T
REWDLQRXWSXWRQULVLQJHGJHRIFORFN
" " " " LJQRUHQHJDWLYHHGJHRIFORFN
" "
" LJQRUHGDWDFKDQJHVRQVWHDG\FORFN
"
"" " HQGWDEOH
HQGSULPLWLYH
7KHWHUPVVXFKDVUHSUHVHQWWUDQVLWLRQVRIWKHLQSXWYDOXHV6SHFLÀFDOO\UHSUHVHQWVDWUDQVLWLRQIURPWR
7KHÀUVWOLQHLQWKHWDEOHRIWKHSUHFHGLQJ8'3GHÀQLWLRQLVLQWHUSUHWHGDVIROORZVZKHQFORFNFKDQJHVYDOXHIURP
WRDQGGDWDHTXDOVWKHRXWSXWJRHVWRQRPDWWHUZKDWWKHFXUUHQWVWDWH
7KHWUDQVLWLRQRIFORFNIURPWR[ZLWKGDWDHTXDOWRDQGFXUUHQWVWDWHHTXDOWRZLOOUHVXOWLQWKHRXWSXWTJRLQJWR
[
6HTXHQWLDO8'3LQLWLDOL]DWLRQ
7KHLQLWLDOYDOXHRQWKHRXWSXWSRUWRIDVHTXHQWLDO8'3FDQEHVSHFLÀHGZLWKDQLQLWLDOVWDWHPHQWWKDWSURYLGHVDSUR
FHGXUDODVVLJQPHQW7KHLQLWLDOVWDWHPHQWLVRSWLRQDO
/LNHLQLWLDOVWDWHPHQWVLQPRGXOHVWKHLQLWLDOVWDWHPHQWLQ8'3VEHJLQZLWKWKHNH\ZRUGLQLWLDO7KHYDOLGFRQWHQWVRI
LQLWLDOVWDWHPHQWVLQ8'3VDQGWKHYDOLGOHIWKDQGDQGULJKWKDQGVLGHVRIWKHLUSURFHGXUDODVVLJQPHQWVWDWHPHQWVGLI
IHUIURPLQLWLDOVWDWHPHQWVLQPRGXOHV$SDUWLDOOLVWRIGLIIHUHQFHVEHWZHHQWKHVHWZRW\SHVRILQLWLDOVWDWHPHQWVLV
GHVFULEHGLQ7DEOH
7DEOH³,QLWLDOVWDWHPHQWVLQ8'3VDQGPRGXOHV
,QLWLDOVWDWHPHQWVLQ8'3V
,QLWLDOVWDWHPHQWVLQPRGXOHV
&RQWHQWVOLPLWHGWRRQHSURFHGXUDODVVLJQPHQW
VWDWHPHQW
&RQWHQWVFDQEHRQHSURFHGXUDOVWDWHPHQWRI
DQ\W\SHRUDEORFNVWDWHPHQWWKDWFRQWDLQV
PRUHWKDQRQHSURFHGXUDOVWDWHPHQW
7KHSURFHGXUDODVVLJQPHQWVWDWHPHQWVKDOO
DVVLJQDYDOXHWRDUHJZKRVHLGHQWLÀHU
PDWFKHVWKHLGHQWLÀHURIDQRXWSXWWHUPLQDO
3URFHGXUDODVVLJQPHQWVWDWHPHQWVLQLQLWLDO
VWDWHPHQWVFDQDVVLJQYDOXHVWRDUHJZKRVH
LGHQWLÀHUGRHVQRWPDWFKWKHLGHQWLÀHURIDQ
RXWSXWWHUPLQDO
7KHSURFHGXUDODVVLJQPHQWVWDWHPHQWVKDOO
DVVLJQRQHRIWKHIROORZLQJYDOXHV·E·E
·E[
3URFHGXUDODVVLJQPHQWVWDWHPHQWVFDQDVVLJQ
YDOXHVRIDQ\VL]HUDGL[DQGYDOXH
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVDVHTXHQWLDO8'3WKDWFRQWDLQVDQLQLWLDOVWDWHPHQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
SULPLWLYHVUIITVU
RXWSXWTUHJT
LQSXWVU
LQLWLDOT ·E
WDEOH
VUTT
"
I
U"
I
"
HQGWDEOH
HQGSULPLWLYH
7KHRXWSXWTKDVDQLQLWLDOYDOXHRIDWWKHVWDUWRIWKHVLPXODWLRQDGHOD\VSHFLÀFDWLRQRQDQLQVWDQWLDWHG8'3GRHV
QRWGHOD\WKHVLPXODWLRQWLPHRIWKHDVVLJQPHQWRIWKLVLQLWLDOYDOXHWRWKHRXWSXW:KHQVLPXODWLRQVWDUWVWKLVYDOXHLV
WKHFXUUHQWVWDWHLQWKHVWDWHWDEOH'HOD\VDUHQRWSHUPLWWHGLQD8'3LQLWLDOVWDWHPHQW
([DPSOH³7KHIROORZLQJH[DPSOHDQGÀJXUHVKRZKRZYDOXHVDUHDSSOLHGLQDPRGXOHWKDWLQVWDQWLDWHVDVHTXHQWLDO
8'3ZLWKDQLQLWLDOVWDWHPHQW
SULPLWLYHGIITFONG
LQSXWFONG
RXWSXWTUHJT
LQLWLDOT ·E
WDEOH
FON
G
T
T
U
" U
" I
" " "
" HQGWDEOH
HQGSULPLWLYH
PRGXOHGIITTEFONG
LQSXWFONG
RXWSXWTTE
GIIJTLFONG
EXIJTTL
QRWJTETL
HQGPRGXOH
7KH8'3GIIFRQWDLQVDQLQLWLDOVWDWHPHQWWKDWVHWVWKHLQLWLDOYDOXHRILWVRXWSXWWR7KHPRGXOHGIIFRQWDLQVDQ
LQVWDQFHRI8'3GII
)LJXUHVKRZVWKHVFKHPDWLFRIWKHSUHFHGLQJPRGXOHDQGWKHVLPXODWLRQSURSDJDWLRQWLPHVRIWKHLQLWLDOYDOXHRI
WKH8'3RXWSXW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
PRGXOHGII
EXIJ
G
8'3GIIJ
TL
QRWJ
FON
T
TE
TL
T
TE
VLPXODWLRQWLPH
)LJXUH³0RGXOHVFKHPDWLFDQGVLPXODWLRQWLPHVRILQLWLDOYDOXHSURSDJDWLRQ
,Q)LJXUHWKHIDQRXWIURPWKH8'3RXWSXWTLLQFOXGHVQHWVTDQGTE$WVLPXODWLRQWLPHTLFKDQJHVYDOXHWR
7KDWLQLWLDOYDOXHRITLGRHVQRWSURSDJDWHWRQHWTXQWLOVLPXODWLRQWLPHDQGLWGRHVQRWSURSDJDWHWRQHWTEXQWLO
VLPXODWLRQWLPH
8'3LQVWDQFHV
7KHV\QWD[IRUFUHDWLQJD8'3LQVWDQFHLVVKRZQLQ6\QWD[
XGSBLQVWDQWLDWLRQ XGSBLGHQWLILHU>GULYHBVWUHQJWK@>GHOD\@XGSBLQVWDQFH^
XGSBLQVWDQFH`
XGSBLQVWDQFH >QDPHBRIBXGSBLQVWDQFH@RXWSXWBSRUWBFRQQHFWLRQ
LQSXWBSRUWBFRQQHFWLRQ
6\QWD[³6\QWD[IRU8'3LQVWDQFHV
,QVWDQFHVRIXVHUGHÀQHGSULPLWLYHVDUHVSHFLÀHGLQVLGHPRGXOHVLQWKHVDPHPDQQHUDVJDWHVVHH7KHLQVWDQFH
QDPHLVRSWLRQDOMXVWDVIRUJDWHV7KHSRUWFRQQHFWLRQRUGHULVDVVSHFLÀHGLQWKH8'3GHÀQLWLRQ2QO\WZRGHOD\V
FDQ EH VSHFLÀHG EHFDXVH ] LV QRW VXSSRUWHG IRU 8'3V$Q RSWLRQDO UDQJH PD\ EH VSHFLÀHG IRU DQ DUUD\ RI 8'3
LQVWDQFHV7KHSRUWFRQQHFWLRQUXOHVUHPDLQWKHVDPHDVRXWOLQHGLQ
([DPSOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHIROORZLQJH[DPSOHFUHDWHVDQLQVWDQFHRIWKH'W\SHÁLSÁRSGBHGJHBIIGHÀQHGLQ
PRGXOHIOLS
UHJFORFNGDWD
SDUDPHWHUS SDUDPHWHUS SDUDPHWHUS GBHGJHBIISGBLQVWTFORFNGDWD
LQLWLDOEHJLQ
GDWD FORFN SILQLVK
HQG
DOZD\VSFORFN aFORFN
DOZD\VSGDWD aGDWD
HQGPRGXOH
0L[LQJOHYHOVHQVLWLYHDQGHGJHVHQVLWLYHGHVFULSWLRQV
8'3GHÀQLWLRQVDOORZDPL[LQJRIWKHOHYHOVHQVLWLYHDQGWKHHGJHVHQVLWLYHFRQVWUXFWVLQWKHVDPHWDEOH:KHQWKH
LQSXWFKDQJHVWKHHGJHVHQVLWLYHFDVHVDUHSURFHVVHGÀUVWIROORZHGE\OHYHOVHQVLWLYHFDVHV7KXVZKHQOHYHOVHQVL
WLYHDQGHGJHVHQVLWLYHFDVHVVSHFLI\GLIIHUHQWRXWSXWYDOXHVWKHUHVXOWLVVSHFLÀHGE\WKHOHYHOVHQVLWLYHFDVH
([DPSOH
SULPLWLYHMNBHGJHBIITFORFNMNSUHVHWFOHDU
RXWSXWTUHJT
LQSXWFORFNMNSUHVHWFOHDU
WDEOH
FORFN MN SF VWDWHRXWSXWQH[WVWDWH
"
"" "SUHVHWORJLF
"
"" "
"" "FOHDUORJLF
"
"" U
QRUPDOFORFNLQJFDVHV
U
"
U
"
U
"
U
U
I
"" "" "
E
" "" "MDQGNWUDQVLWLRQFDVHV
E
" "" "
HQGWDEOH
HQGSULPLWLYH
,QWKLVH[DPSOHWKHSUHVHWDQGFOHDUORJLFLVOHYHOVHQVLWLYH:KHQHYHUWKHSUHVHWDQGFOHDUFRPELQDWLRQLVWKHRXW
SXWKDVYDOXH6LPLODUO\ZKHQHYHUWKHSUHVHWDQGFOHDUFRPELQDWLRQKDVYDOXHWKHRXWSXWKDVYDOXH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHUHPDLQLQJORJLFLVVHQVLWLYHWRHGJHVRIWKHFORFN,QWKHQRUPDOFORFNLQJFDVHVWKHÁLSÁRSLVVHQVLWLYHWRWKHULV
LQJFORFNHGJHDVLQGLFDWHGE\DQULQWKHFORFNÀHOGLQWKRVHHQWULHV7KHLQVHQVLWLYLW\WRWKHIDOOLQJHGJHRIFORFNLV
LQGLFDWHGE\DK\SKHQLQWKHRXWSXWÀHOGVHH7DEOHIRUWKHHQWU\ZLWKDQIDVWKHYDOXHRIFORFN5HPHPEHU
WKDWWKHGHVLUHGRXWSXWIRUWKLVLQSXWWUDQVLWLRQVKDOOEHVSHFLÀHGWRDYRLGXQZDQWHG[YDOXHVDWWKHRXWSXW7KHODVW
WZRHQWULHVVKRZWKDWWKHWUDQVLWLRQVLQMDQGNLQSXWVGRQRWFKDQJHWKHRXWSXWRQDVWHDG\ORZRUKLJKFORFN
/HYHOVHQVLWLYHGRPLQDQFH
7DEOHVKRZVOHYHOVHQVLWLYHDQGHGJHVHQVLWLYHHQWULHVLQWKHH[DPSOHIURPWKHLUOHYHOVHQVLWLYHRUHGJHVHQVL
WLYHEHKDYLRUDQGDFDVHRILQSXWYDOXHVWKDWHDFKLQFOXGHV
7DEOH³0L[LQJRIOHYHOVHQVLWLYHDQGHGJHVHQVLWLYHHQWULHV
(QWU\
,QFOXGHGFDVH
%HKDYLRU
""""
/HYHOVHQVLWLYH
I"""""
I
(GJHVHQVLWLYH
7KHLQFOXGHGFDVHVVSHFLI\RSSRVLWHQH[WVWDWHYDOXHVIRUWKHVDPHLQSXWDQGFXUUHQWVWDWHFRPELQDWLRQ7KHOHYHOVHQ
VLWLYHLQFOXGHGFDVHVSHFLÀHVWKDWZKHQWKHLQSXWVFORFNMNDQGSFYDOXHVDUHDQGDQGWKHFXUUHQWVWDWH
LVWKHRXWSXWFKDQJHVWR7KHHGJHVHQVLWLYHLQFOXGHGFDVHVSHFLÀHVWKDWZKHQFORFNIDOOVIURPWRWKHRWKHU
LQSXWVMNDQGSFDUHDQGDQGWKHFXUUHQWVWDWHLVWKHQWKHRXWSXWFKDQJHVWR
:KHQWKHHGJHVHQVLWLYHFDVHLVSURFHVVHGÀUVWIROORZHGE\WKHOHYHOVHQVLWLYHFDVHWKHRXWSXWFKDQJHVWR
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
%HKDYLRUDOPRGHOLQJ
7KHODQJXDJHFRQVWUXFWVLQWURGXFHGVRIDUDOORZKDUGZDUHWREHGHVFULEHGDWDUHODWLYHO\GHWDLOHGOHYHO0RGHOLQJD
FLUFXLWZLWKORJLFJDWHVDQGFRQWLQXRXVDVVLJQPHQWVUHÁHFWVTXLWHFORVHO\WKHORJLFVWUXFWXUHRIWKHFLUFXLWEHLQJPRG
HOHGKRZHYHUWKHVHFRQVWUXFWVGRQRWSURYLGHWKHSRZHURIDEVWUDFWLRQQHFHVVDU\IRUGHVFULELQJFRPSOH[KLJKOHYHO
DVSHFWVRIDV\VWHP7KHSURFHGXUDOFRQVWUXFWVGHVFULEHGLQWKLVVHFWLRQDUHZHOOVXLWHGWRWDFNOLQJSUREOHPVVXFKDV
GHVFULELQJDPLFURSURFHVVRURULPSOHPHQWLQJFRPSOH[WLPLQJFKHFNV
7KLVVHFWLRQVWDUWVZLWKDEULHIRYHUYLHZRIDEHKDYLRUDOPRGHOWRSURYLGHDFRQWH[WIRUPDQ\W\SHVRIEHKDYLRUDO
VWDWHPHQWVLQWKH9HULORJ+'/
%HKDYLRUDOPRGHORYHUYLHZ
9HULORJEHKDYLRUDOPRGHOVFRQWDLQSURFHGXUDOVWDWHPHQWVWKDWFRQWUROWKHVLPXODWLRQDQGPDQLSXODWHYDULDEOHVRIWKH
GDWDW\SHVSUHYLRXVO\GHVFULEHG7KHVHVWDWHPHQWVDUHFRQWDLQHGZLWKLQSURFHGXUHV(DFKSURFHGXUHKDVDQDFWLYLW\
ÁRZDVVRFLDWHGZLWKLW
7KHDFWLYLW\VWDUWVDWWKHFRQWUROFRQVWUXFWVLQLWLDODQGDOZD\V(DFKLQLWLDOFRQVWUXFWDQGHDFKDOZD\VFRQVWUXFWVWDUWV
DVHSDUDWHDFWLYLW\ÁRZ$OORIWKHDFWLYLW\ÁRZVDUHFRQFXUUHQWWRPRGHOWKHLQKHUHQWFRQFXUUHQFHRIKDUGZDUH7KHVH
FRQVWUXFWVDUHIRUPDOO\GHVFULEHGLQ
7KHIROORZLQJH[DPSOHVKRZVDFRPSOHWH9HULORJEHKDYLRUDOPRGHO
PRGXOHEHKDYH
UHJ>@DE
LQLWLDOEHJLQ
D ·E
E ·E
HQG
DOZD\VEHJLQ
D aD
HQG
DOZD\VEHJLQ
E aE
HQG
HQGPRGXOH
'XULQJVLPXODWLRQRIWKLVPRGHODOORIWKHÁRZVGHÀQHGE\WKHLQLWLDODQGDOZD\VFRQVWUXFWVVWDUWWRJHWKHUDWVLPXOD
WLRQWLPH]HUR7KHLQLWLDOFRQVWUXFWVH[HFXWHRQFHDQGWKHDOZD\VFRQVWUXFWVH[HFXWHUHSHWLWLYHO\
,QWKLVPRGHOWKHUHJLVWHUYDULDEOHVDDQGELQLWLDOL]HWRDQGUHVSHFWLYHO\DWVLPXODWLRQWLPH]HUR7KHLQLWLDOFRQ
VWUXFWLVWKHQFRPSOHWHDQGGRHVQRWH[HFXWHDJDLQGXULQJWKLVVLPXODWLRQUXQ7KLVLQLWLDOFRQVWUXFWFRQWDLQVDEHJLQ
HQGEORFNDOVRFDOOHGDVHTXHQWLDOEORFNRIVWDWHPHQWV,QWKLVEHJLQHQGEORFNDLVLQLWLDOL]HGÀUVWIROORZHGE\E
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHDOZD\VFRQVWUXFWVDOVRVWDUWDWWLPH]HUREXWWKHYDOXHVRIWKHYDULDEOHVGRQRWFKDQJHXQWLOWKHWLPHVVSHFLÀHGE\
WKHGHOD\FRQWUROVLQWURGXFHGE\ KDYHHODSVHG7KXVUHJLVWHU DLQYHUWVDIWHUWLPHXQLWVDQGUHJLVWHU ELQYHUWV
DIWHUWLPHXQLWV6LQFHWKHDOZD\VFRQVWUXFWVUHSHDWWKLVPRGHOZLOOSURGXFHWZRVTXDUHZDYHV7KHUHJLVWHUDWRJ
JOHVZLWKDSHULRGRIWLPHXQLWVDQGUHJLVWHUEWRJJOHVZLWKDSHULRGRIWLPHXQLWV7KHWZRDOZD\VFRQVWUXFWV
SURFHHGFRQFXUUHQWO\WKURXJKRXWWKHHQWLUHVLPXODWLRQUXQ
3URFHGXUDODVVLJQPHQWV
$VGHVFULEHGLQ6HFWLRQSURFHGXUDODVVLJQPHQWVDUHXVHGIRUXSGDWLQJUHJLQWHJHUWLPHUHDOUHDOWLPHDQGPHP
RU\GDWDW\SHV7KHUHLVDVLJQLÀFDQWGLIIHUHQFHEHWZHHQSURFHGXUDODVVLJQPHQWVDQGFRQWLQXRXVDVVLJQPHQWV
³
&RQWLQXRXVDVVLJQPHQWVGULYHQHWVDQGDUHHYDOXDWHGDQGXSGDWHGZKHQHYHUDQLQSXWRSHUDQGFKDQJHVYDOXH
³
3URFHGXUDODVVLJQPHQWVXSGDWHWKHYDOXHRIUHJLVWHUVXQGHUWKHFRQWURORIWKHSURFHGXUDOÁRZFRQVWUXFWVWKDW
VXUURXQGWKHP
7KHULJKWKDQGVLGHRIDSURFHGXUDODVVLJQPHQWFDQEHDQ\H[SUHVVLRQWKDWHYDOXDWHVWRDYDOXH7KHOHIWKDQGVLGH
VKDOOEHDUHJLVWHUWKDWUHFHLYHVWKHDVVLJQPHQWIURPWKHULJKWKDQGVLGH7KHOHIWKDQGVLGHRIDSURFHGXUDODVVLJQPHQW
FDQWDNHRQHRIWKHIROORZLQJIRUPV
³
UHJLQWHJHUUHDOUHDOWLPH RUWLPHUHJLVWHUGDWDW\SH DQDVVLJQPHQWWRWKHQDPHUHIHUHQFHRIRQHRIWKHVH
GDWDW\SHV
³ %LWVHOHFWRIDUHJLQWHJHU RUWLPH UHJLVWHUGDWDW\SHDQDVVLJQPHQWWRDVLQJOHELWWKDWOHDYHVWKHRWKHUELWV
XQWRXFKHG
³ 3DUWVHOHFWRIDUHJLQWHJHURUWLPHUHJLVWHUGDWDW\SHDSDUWVHOHFWRIRQHRUPRUHFRQWLJXRXVELWVWKDWOHDYHV
WKHUHVWRIWKHELWVXQWRXFKHG2QO\FRQVWDQWH[SUHVVLRQVVKDOOEHOHJDOIRUVSHFLI\LQJWKHSDUWVHOHFWLQGH[
³ 0HPRU\ZRUGDVLQJOHZRUGRIDPHPRU\
³ &RQFDWHQDWLRQRIDQ\RIWKHDERYHDFRQFDWHQDWLRQRIDQ\RIWKHSUHYLRXVIRXUIRUPVFDQEHVSHFLÀHGZKLFK
HIIHFWLYHO\SDUWLWLRQVWKHUHVXOWRIWKHULJKWKDQGVLGHH[SUHVVLRQDQGDVVLJQVWKHSDUWLWLRQSDUWVLQRUGHUWRWKH
YDULRXVSDUWVRIWKHFRQFDWHQDWLRQ
127(³$VVLJQPHQWWRDUHJGDWDW\SHGLIIHUVIURPDVVLJQPHQWWRDUHDOUHDOWLPHWLPHRULQWHJHUYDULDEOHZKHQWKHULJKWKDQG
VLGHHYDOXDWHVWRIHZHUELWVWKDQWKHOHIWKDQGVLGH$VVLJQPHQWWRDUHJVKDOOQRWVLJQH[WHQG
7KH9HULORJ+'/FRQWDLQVWZRW\SHVRISURFHGXUDODVVLJQPHQWVWDWHPHQWV
³ %ORFNLQJSURFHGXUDODVVLJQPHQWVWDWHPHQWV
³ 1RQEORFNLQJSURFHGXUDODVVLJQPHQWVWDWHPHQWV
%ORFNLQJDQGQRQEORFNLQJSURFHGXUDODVVLJQPHQWVWDWHPHQWVVSHFLI\GLIIHUHQWSURFHGXUDOÁRZVLQVHTXHQWLDOEORFNV
%ORFNLQJSURFHGXUDODVVLJQPHQWV
$EORFNLQJSURFHGXUDODVVLJQPHQWVWDWHPHQWVKDOOEHH[HFXWHGEHIRUHWKHH[HFXWLRQRIWKHVWDWHPHQWVWKDWIROORZLWLQ
DVHTXHQWLDOEORFNVHH$EORFNLQJSURFHGXUDODVVLJQPHQWVWDWHPHQWVKDOOQRWSUHYHQWWKHH[HFXWLRQRIVWDWH
PHQWVWKDWIROORZLWLQDSDUDOOHOEORFNVHH
7KHV\QWD[IRUDEORFNLQJSURFHGXUDODVVLJQPHQWLVJLYHQLQ6\QWD[
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
EORFNLQJDVVLJQPHQW UHJBOYDOXH >GHOD\BRUBHYHQWBFRQWURO@H[SUHVVLRQ
GHOD\BRUBHYHQWBFRQWURO GHOD\BFRQWURO
_HYHQWBFRQWURO
_UHSHDWH[SUHVVLRQHYHQWBFRQWURO
UHJBOYDOXH UHJBLGHQWLILHU
_UHJBLGHQWLILHU>H[SUHVVLRQ@
_UHJBLGHQWLILHU>PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
_UHJBFRQFDWHQDWLRQ
GHOD\BFRQWURO
GHOD\BYDOXH
_PLQW\SPD[BH[SUHVVLRQ
HYHQWBFRQWURO
#HYHQWBLGHQWLILHU
_#HYHQWBH[SUHVVLRQ
HYHQWBH[SUHVVLRQ H[SUHVVLRQ
_HYHQWBLGHQWLILHU
_SRVHGJHH[SUHVVLRQ
_QHJHGJHH[SUHVVLRQ
_HYHQWBH[SUHVVLRQRUHYHQWBH[SUHVVLRQ
6\QWD[³6\QWD[IRUEORFNLQJDVVLJQPHQWV
,QWKLVV\QWD[UHJBOYDOXHLVDGDWDW\SHWKDWLVYDOLGIRUDSURFHGXUDODVVLJQPHQWVWDWHPHQW LVWKHDVVLJQPHQWRSHUD
WRUDQGGHOD\BRUBHYHQWBFRQWUROLVWKHRSWLRQDOLQWUDDVVLJQPHQWWLPLQJFRQWURO7KHFRQWUROFDQEHHLWKHUDGHOD\FRQ
WUROHJ RUDQHYHQWBFRQWUROHJ #SRVHGJH FON7KHH[SUHVVLRQLVWKHULJKWKDQGVLGHYDOXHWKDWVKDOOEH
DVVLJQHGWRWKHOHIWKDQGVLGH,IUHJBOYDOXHUHTXLUHVDQHYDOXDWLRQLWVKDOOEHHYDOXDWHGDWWKHWLPHVSHFLÀHGE\WKH
LQWUDDVVLJQPHQWWLPLQJFRQWURO
7KH DVVLJQPHQWRSHUDWRUXVHGE\EORFNLQJSURFHGXUDODVVLJQPHQWVLVDOVRXVHGE\SURFHGXUDOFRQWLQXRXVDVVLJQ
PHQWVDQGFRQWLQXRXVDVVLJQPHQWV
([DPSOH
7KHIROORZLQJH[DPSOHVVKRZEORFNLQJSURFHGXUDODVVLJQPHQWV
UHJD UHJD>@ DELWVHOHFW
UHJD>@ DSDUWVHOHFW
PHPD>DGGUHVV@ ·KII DVVLJQPHQWWRDPHPHOHPHQW
^FDUU\DFF` UHJDUHJEDFRQFDWHQDWLRQ
7KHQRQEORFNLQJSURFHGXUDODVVLJQPHQW
7KH QRQEORFNLQJ SURFHGXUDO DVVLJQPHQW DOORZV DVVLJQPHQW VFKHGXOLQJ ZLWKRXW EORFNLQJ WKH SURFHGXUDO ÁRZ 7KH
QRQEORFNLQJ SURFHGXUDO DVVLJQPHQW VWDWHPHQW FDQ EH XVHG ZKHQHYHU VHYHUDO UHJLVWHU DVVLJQPHQWV ZLWKLQ WKH VDPH
WLPHVWHSFDQEHPDGHZLWKRXWUHJDUGWRRUGHURUGHSHQGDQFHXSRQHDFKRWKHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHV\QWD[IRUDQRQEORFNLQJSURFHGXUDODVVLJQPHQWLVJLYHQLQ6\QWD[
QRQEORFNLQJDVVLJQPHQW UHJBOYDOXH >GHOD\BRUBHYHQWBFRQWURO@H[SUHVVLRQ
6\QWD[³6\QWD[IRUQRQEORFNLQJDVVLJQPHQWV
,QWKLVV\QWD[UHJBOYDOXHLVDGDWDW\SHWKDWLVYDOLGIRUDSURFHGXUDODVVLJQPHQWVWDWHPHQW LVWKHQRQEORFNLQJ
DVVLJQPHQW RSHUDWRU DQG GHOD\BRUBHYHQWBFRQWURO LV WKH RSWLRQDO LQWUDDVVLJQPHQW WLPLQJ FRQWURO ,I UHJBOYDOXH
UHTXLUHVDQHYDOXDWLRQLWVKDOOEHHYDOXDWHGDWWKHVDPHWLPHDVWKHH[SUHVVLRQRQWKHULJKWKDQGVLGH7KHRUGHURI
HYDOXDWLRQRIWKHUHJBOYDOXHDQGWKHH[SUHVVLRQRQWKHULJKWKDQGVLGHLVXQGHÀQHGLIWLPLQJFRQWUROLVQRWVSHFLÀHG
7KHQRQEORFNLQJDVVLJQPHQWRSHUDWRULVWKHVDPHRSHUDWRUDVWKHOHVVWKDQRUHTXDOWRUHODWLRQDORSHUDWRU7KHLQWHU
SUHWDWLRQVKDOOEHGHFLGHGIURPWKHFRQWH[WLQZKLFK DSSHDUV:KHQ LVXVHGLQDQH[SUHVVLRQLWVKDOOEHLQWHU
SUHWHGDVDUHODWLRQDORSHUDWRUDQGZKHQLWLVXVHGLQDQRQEORFNLQJSURFHGXUDODVVLJQPHQWLWVKDOOEHLQWHUSUHWHGDV
DQDVVLJQPHQWRSHUDWRU
7KHQRQEORFNLQJSURFHGXUDODVVLJQPHQWVVKDOOEHHYDOXDWHGLQWZRVWHSVDVGLVFXVVHGLQ6HFWLRQ7KHVHWZRVWHSV
DUHVKRZQLQWKHIROORZLQJH[DPSOH
([DPSOH
PRGXOHHYDOXDWHVRXW
RXWSXWRXW
UHJDEF
6WHS
LQLWLDOEHJLQ
D E F HQG
DOZD\VF aF
6WHS
7KH VLPXODWRU HYDOXDWHV WKH
ULJKWKDQG VLGH RI WKH QRQ
EORFNLQJ DVVLJQPHQWV DQG
VFKHGXOHV WKH DVVLJQPHQWV RI
WKHQHZYDOXHVDWSRVHGJHF
$W SRVHGJH F WKH VLPXODWRU
XSGDWHV WKH OHIWKDQG VLGH RI
HDFK QRQEORFNLQJ DVVLJQPHQW
VWDWHPHQW
DOZD\V#SRVHGJHFEHJLQ
D EHYDOXDWHVVFKHGXOHV
E DDQGH[HFXWHVLQWZRVWHSV
HQG
HQGPRGXOH
1RQEORFNLQJ
DVVLJQPHQW
VFKHGXOHV
FKDQJHV DW
WLPH
D E $VVLJQPHQW
YDOXHVDUH
D E $WWKHHQGRIWKHWLPHVWHSPHDQVWKDWWKHQRQEORFNLQJDVVLJQPHQWVDUHWKHODVWDVVLJQPHQWVH[HFXWHGLQDWLPHVWHS³
ZLWKRQHH[FHSWLRQ1RQEORFNLQJDVVLJQPHQWHYHQWVFDQFUHDWHEORFNLQJDVVLJQPHQWHYHQWV7KHVHEORFNLQJDVVLJQ
PHQWHYHQWVVKDOOEHSURFHVVHGDIWHUWKHVFKHGXOHGQRQEORFNLQJHYHQWV
8QOLNHDQHYHQWRUGHOD\FRQWUROIRUEORFNLQJDVVLJQPHQWVWKHQRQEORFNLQJDVVLJQPHQWGRHVQRWEORFNWKHSURFHGXUDO
ÁRZ7KHQRQEORFNLQJDVVLJQPHQWHYDOXDWHVDQGVFKHGXOHVWKHDVVLJQPHQWEXWLWGRHVQRWEORFNWKHH[HFXWLRQRIVXE
VHTXHQWVWDWHPHQWVLQDEHJLQHQGEORFN
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
QRQBEORFNY
PRGXOHQRQBEORFN
UHJDEFGHI
EORFNLQJDVVLJQPHQWV
LQLWLDOEHJLQ
D DZLOOEHDVVLJQHGDWWLPH
E EZLOOEHDVVLJQHGDWWLPH
F FZLOOEHDVVLJQHGDWWLPH
HQG
QRQEORFNLQJDVVLJQPHQWV
LQLWLDOEHJLQ
G GZLOOEHDVVLJQHGDWWLPH
H HZLOOEHDVVLJQHGDWWLPH
I IZLOOEHDVVLJQHGDWWLPH
HQG
HQGPRGXOH
VFKHGXOHG
FKDQJHVDW
WLPH
H VFKHGXOHG
FKDQJHVDW
WLPH
I VFKHGXOHG
FKDQJHVDW
WLPH
G $VVKRZQLQWKHSUHYLRXVH[DPSOHWKHVLPXODWRUHYDOXDWHVDQGVFKHGXOHVDVVLJQPHQWVIRUWKHHQGRIWKHFXUUHQWWLPH
VWHSDQGFDQSHUIRUPVZDSSLQJRSHUDWLRQVZLWKWKHQRQEORFNLQJSURFHGXUDODVVLJQPHQWV
([DPSOH
7KH VLPXODWRU HYDOXDWHV WKH ULJKW
QRQBEORFNY
6WHS
KDQG VLGH RI WKH QRQEORFNLQJ
PRGXOHQRQBEORFN
DVVLJQPHQWV DQG VFKHGXOHV WKH
UHJDE
DVVLJQPHQWVIRUWKHHQGRIWKHFXU
LQLWLDOEHJLQ
UHQWWLPHVWHS
D E D EHYDOXDWHVVFKHGXOHVDQG
6WHS
E DH[HFXWHVLQWZRVWHSV
HQG
$WWKHHQGRIWKHFXUUHQWWLPHVWHS
LQLWLDOEHJLQ
WKH VLPXODWRU XSGDWHV WKH OHIWKDQG
PRQLWRUWLPHD EE EDE VLGH RI HDFK QRQEORFNLQJ DVVLJQ
PHQWVWDWHPHQW
ILQLVK
HQG
HQGPRGXOH
DVVLJQPHQWYDOXHVDUH
D E :KHQPXOWLSOHQRQEORFNLQJDVVLJQPHQWVDUHVFKHGXOHGWRRFFXULQWKHVDPHUHJLVWHULQDSDUWLFXODUWLPHVORWWKHRUGHU
LQZKLFKWKHDVVLJQPHQWVDUHHYDOXDWHGLVQRWJXDUDQWHHG³WKHÀQDOYDOXHRIWKHUHJLVWHULVLQGHWHUPLQDWH$VVKRZQLQ
WKHIROORZLQJH[DPSOHWKHYDOXHRIUHJLVWHUDLVQRWNQRZQXQWLOWKHHQGRIWLPHVWHS
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
([DPSOH
PRGXOHPXOWLSOHRXW
RXWSXWRXW
UHJD
LQLWLDOD 7KHDVVLJQHGYDOXHRIWKHUHJLVWHULVLQGHWHUPLQDWH
LQLWLDOEHJLQ
D VFKHGXOHVD DWWLPH
D VFKHGXOHVD DWWLPH
HQG
$WWLPHD ""
HQGPRGXOH
,I WKH VLPXODWRU H[HFXWHV WZR SURFHGXUDO EORFNV FRQFXUUHQWO\ DQG LI WKHVH SURFHGXUDO EORFNV FRQWDLQ QRQEORFNLQJ
DVVLJQPHQWRSHUDWRUVWRWKHVDPHUHJLVWHUWKHÀQDOYDOXHRIWKDWUHJLVWHULVLQGHWHUPLQDWH)RUH[DPSOHWKHYDOXHRI
UHJLVWHUDLVLQGHWHUPLQDWHLQWKHIROORZLQJH[DPSOH
([DPSOH
PRGXOHPXOWLSOH
UHJD
LQLWLDOD LQLWLDOD LQLWLDOD VFKHGXOHVDWWLPH
VFKHGXOHVDWWLPH
$WWLPHD ""
HQGPRGXOH
:KHQ PXOWLSOH QRQEORFNLQJ DVVLJQPHQWV ZLWK WLPLQJ FRQWUROV DUH PDGH WR WKH VDPH UHJLVWHU WKH DVVLJQPHQWV DUH
PDGHZLWKRXWFDQFHOOLQJQRQEORFNLQJDVVLJQPHQWVVFKHGXOHGDWRWKHUWLPHV6FKHGXOLQJDQDVVLJQPHQWWRDUHJLVWHUDW
WKHVDPHWLPHDVDSUHYLRXVO\VFKHGXOHGDVVLJQPHQWWRWKHVDPHUHJLVWHUVKDOOUHVXOWLQDQDUELWUDU\RUGHURIDVVLJQ
PHQWWRWKDWUHJLVWHUDQGKHQFHWKHÀQDOYDOXHRIWKDWUHJLVWHUFDQQRWEHSUHGLFWHG
7KHIROORZLQJH[DPSOHVKRZVKRZWKHYDOXHRIL>@LVDVVLJQHGWRUDQGKRZWKHDVVLJQPHQWVDUHVFKHGXOHGWR
RFFXUDIWHUHDFKWLPHGHOD\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
PRGXOHPXOWLSOH
UHJU
UHJ>@L
LQLWLDOEHJLQ
VWDUWVDWWLPHGRHVQRWKROGWKHEORFN
U PDNHVDVVLJQPHQWVWRUZLWKRXWFDQFHOOLQJSUHYLRXVDVVLJQPHQWV
IRUL L L L
U LL>@
HQG
HQGPRGXOH
U
3URFHGXUDOFRQWLQXRXVDVVLJQPHQWV
7KH SURFHGXUDO FRQWLQXRXV DVVLJQPHQWV XVLQJ NH\ZRUGV DVVLJQ DQG IRUFH DUH SURFHGXUDO VWDWHPHQWV WKDW DOORZ
H[SUHVVLRQVWREHGULYHQFRQWLQXRXVO\RQWRUHJLVWHUVRUQHWV7KHV\QWD[IRUWKHVHVWDWHPHQWVLVJLYHQLQ6\QWD[
SURFHGXUDOBFRQWLQXRXVBDVVLJQPHQWV DVVLJQUHJBDVVLJQPHQW
_GHDVVLJQUHJBOYDOXH
_IRUFHUHJBDVVLJQPHQW
_IRUFHQHWBDVVLJQPHQW
_UHOHDVHUHJBOYDOXH
_UHOHDVHQHWBOYDOXH
UHJBDVVLJQPHQW
UHJBOYDOXH H[SUHVVLRQ
QHWBDVVLJQPHQW
QHWBOYDOXH H[SUHVVLRQ
6\QWD[³6\QWD[IRUSURFHGXUDOFRQWLQXRXVDVVLJQPHQWV
7KHOHIWKDQGVLGHRIWKHDVVLJQPHQWLQWKHDVVLJQVWDWHPHQWVKDOOEHDUHJLVWHUUHIHUHQFHRUDFRQFDWHQDWLRQRIUHJLV
WHUV,WVKDOOQRWEHDPHPRU\ZRUGDUUD\UHIHUHQFHRUDELWVHOHFWRUDSDUWVHOHFWRIDUHJLVWHU
,QFRQWUDVWWKHOHIWKDQGVLGHRIWKHDVVLJQPHQWLQWKHIRUFHVWDWHPHQWFDQEHDUHJLVWHUUHIHUHQFHRUDQHWUHIHUHQFH,W
FDQ EH D FRQFDWHQDWLRQ RI DQ\ RI WKH DERYH %LWVHOHFWV DQG SDUWVHOHFWV RI YHFWRU UHJLVWHUV RU YHFWRU QHWV DUH QRW
DOORZHG
7KHDVVLJQDQGGHDVVLJQSURFHGXUDOVWDWHPHQWV
7KHDVVLJQSURFHGXUDOFRQWLQXRXVDVVLJQPHQWVWDWHPHQWVKDOORYHUULGHDOOSURFHGXUDODVVLJQPHQWVWRDUHJLVWHU7KH
GHDVVLJQSURFHGXUDOVWDWHPHQWVKDOOHQGDSURFHGXUDOFRQWLQXRXVDVVLJQPHQWWRDUHJLVWHU7KHYDOXHRIWKHUHJLVWHU
VKDOOUHPDLQWKHVDPHXQWLOWKHUHJLVWHULVDVVLJQHGDQHZYDOXHWKURXJKDSURFHGXUDODVVLJQPHQWRUDSURFHGXUDOFRQ
WLQXRXVDVVLJQPHQW7KHDVVLJQDQGGHDVVLJQSURFHGXUDOVWDWHPHQWVDOORZIRUH[DPSOHPRGHOLQJRIDV\QFKURQRXV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
FOHDUSUHVHWRQD'W\SHHGJHWULJJHUHGÁLSÁRSZKHUHWKHFORFNLVLQKLELWHGZKHQWKHFOHDURUSUHVHWLVDFWLYH
,IWKHNH\ZRUGDVVLJQLVDSSOLHGWRDUHJLVWHUIRUZKLFKWKHUHLVDOUHDG\DSURFHGXUDOFRQWLQXRXVDVVLJQPHQWWKHQWKLV
QHZ SURFHGXUDO FRQWLQXRXV DVVLJQPHQW VKDOO GHDVVLJQ WKH UHJLVWHU EHIRUH PDNLQJ WKH QHZ SURFHGXUDO FRQWLQXRXV
DVVLJQPHQW
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVDXVHRIWKHDVVLJQDQGGHDVVLJQSURFHGXUDOVWDWHPHQWVLQDEHKDYLRUDOGHVFULSWLRQRID
'W\SHÁLSÁRSZLWKSUHVHWDQGFOHDULQSXWV
PRGXOHGIITGFOHDUSUHVHWFORFN
RXWSXWT
LQSXWGFOHDUSUHVHWFORFN
UHJT
DOZD\V#FOHDURUSUHVHW
LIFOHDU
DVVLJQT HOVHLISUHVHW
DVVLJQT HOVH
GHDVVLJQT
DOZD\V#SRVHGJHFORFN
T G
HQGPRGXOH
,IHLWKHUFOHDURUSUHVHWLVORZWKHQWKHRXWSXWTZLOOEHKHOGFRQWLQXRXVO\WRWKHDSSURSULDWHFRQVWDQWYDOXHDQG
DSRVLWLYHHGJHRQWKHFORFNZLOOQRWDIIHFWT:KHQERWKWKHFOHDUDQGSUHVHWDUHKLJKWKHQTLVGHDVVLJQHG
7KHIRUFHDQGUHOHDVHSURFHGXUDOVWDWHPHQWV
$QRWKHUIRUPRISURFHGXUDOFRQWLQXRXVDVVLJQPHQWLVSURYLGHGE\WKHIRUFHDQGUHOHDVHSURFHGXUDOVWDWHPHQWV7KHVH
VWDWHPHQWVKDYHDVLPLODUHIIHFWWRWKHDVVLJQGHDVVLJQSDLUEXWDIRUFHFDQEHDSSOLHGWRQHWVDVZHOODVWRUHJLVWHUV
7KHOHIWKDQGVLGHRIWKHDVVLJQPHQWFDQEHDUHJLVWHUDQHWDFRQVWDQWELWVHOHFWRIDYHFWRUQHWDSDUWVHOHFWRIDYHF
WRUQHWRUDFRQFDWHQDWLRQ,WFDQQRWEHDPHPRU\ZRUGDUUD\UHIHUHQFHRUDELWVHOHFWRUDSDUWVHOHFWRIDYHFWRU
UHJLVWHU
$IRUFHVWDWHPHQWWRDUHJLVWHUVKDOORYHUULGHDSURFHGXUDODVVLJQPHQWRUSURFHGXUDOFRQWLQXRXVDVVLJQPHQWWKDWWDNHV
SODFHRQWKHUHJLVWHUXQWLODUHOHDVHSURFHGXUDOVWDWHPHQWLVH[HFXWHGRQWKHUHJLVWHU$IWHUWKHUHOHDVHSURFHGXUDOVWDWH
PHQWLVH[HFXWHGWKHUHJLVWHUVKDOOQRWLPPHGLDWHO\FKDQJHYDOXHDVZRXOGDQHWWKDWLVIRUFHG7KHYDOXHVSHFLÀHG
LQWKHIRUFHVWDWHPHQWVKDOOEHPDLQWDLQHGLQWKHUHJLVWHUXQWLOWKHQH[WSURFHGXUDODVVLJQPHQWWDNHVSODFHH[FHSWLQ
WKHFDVHZKHUHDSURFHGXUDOFRQWLQXRXVDVVLJQPHQWLVDFWLYHRQWKHUHJLVWHU
$IRUFHSURFHGXUDOVWDWHPHQWRQDQHWRYHUULGHVDOOGULYHUVRIWKHQHW³JDWHRXWSXWVPRGXOHRXWSXWVDQGFRQWLQXRXV
DVVLJQPHQWV³XQWLODUHOHDVHSURFHGXUDOVWDWHPHQWLVH[HFXWHGRQWKHQHW
5HOHDVLQJDUHJLVWHUWKDWFXUUHQWO\KDVDQDFWLYHSURFHGXUDOFRQWLQXRXVDVVLJQPHQWVKDOOUHHVWDEOLVKWKDWDVVLJQPHQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
PRGXOHWHVW
UHJDEFG
ZLUHH
DQGDQGHDEF
LQLWLDOEHJLQ
PRQLWRUGG EH EVWLPHGH
DVVLJQG DEF
D E F IRUFHG D_E_F
IRUFHH D_E_F
VWRS
UHOHDVHG
UHOHDVHH
ILQLVK
HQG
HQGPRGXOH
5HVXOWV
G H G H G H ,QWKLVH[DPSOHDQDQGJDWHLQVWDQFHDQGLV´SDWFKHGµDVDQRUJDWHE\DIRUFHSURFHGXUDOVWDWHPHQWWKDWIRUFHVLWV
RXWSXWWRWKHYDOXHRILWVORJLFDORULQSXWVDQGDQDVVLJQSURFHGXUDOVWDWHPHQWRIORJLFDODQGYDOXHVLV´SDWFKHGµDVDQ
DVVLJQSURFHGXUDOVWDWHPHQWRIORJLFDORUYDOXHV
7KHULJKWKDQGVLGHRIDSURFHGXUDOFRQWLQXRXVDVVLJQPHQWRUDIRUFHVWDWHPHQWFDQEHDQH[SUHVVLRQ7KLVVKDOOEH
WUHDWHGMXVWDVDFRQWLQXRXVDVVLJQPHQWWKDWLVLIDQ\YDULDEOHRQWKHULJKWKDQGVLGHRIWKHDVVLJQPHQWFKDQJHVWKH
DVVLJQPHQWVKDOOEHUHHYDOXDWHGZKLOHWKHDVVLJQRUIRUFHLVLQHIIHFW)RUH[DPSOH
IRUFHD EIF
+HUHLIEFKDQJHVRUFFKDQJHVDZLOOEHIRUFHGWRWKHQHZYDOXHRIWKHH[SUHVVLRQEIF
&RQGLWLRQDOVWDWHPHQW
7KHFRQGLWLRQDOVWDWHPHQWRULIHOVHVWDWHPHQWLVXVHGWRPDNHDGHFLVLRQDVWRZKHWKHUDVWDWHPHQWLVH[HFXWHGRU
QRW)RUPDOO\WKHV\QWD[LVJLYHQLQ6\QWD[
FRQGLWLRQDOBVWDWHPHQW LIH[SUHVVLRQVWDWHPHQWBRUBQXOO>HOVHVWDWHPHQWBRUBQXOO@
VWDWHPHQWBRUBQXOO VWDWHPHQW_
6\QWD[³6\QWD[RILIVWDWHPHQW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
,IWKHH[SUHVVLRQHYDOXDWHVWRWUXHWKDWLVKDVDQRQ]HURNQRZQYDOXHWKHÀUVWVWDWHPHQWVKDOOEHH[HFXWHG,ILWHYDO
XDWHVWRIDOVHKDVD]HURYDOXHRUWKHYDOXHLV[RU]WKHÀUVWVWDWHPHQWVKDOOQRWH[HFXWH,IWKHUHLVDQHOVHVWDWHPHQW
DQGH[SUHVVLRQLVIDOVHWKHHOVHVWDWHPHQWVKDOOEHH[HFXWHG
6LQFHWKHQXPHULFYDOXHRIWKHLIH[SUHVVLRQLVWHVWHGIRUEHLQJ]HURFHUWDLQVKRUWFXWVDUHSRVVLEOH)RUH[DPSOHWKH
IROORZLQJWZRVWDWHPHQWVH[SUHVVWKHVDPHORJLF
LIH[SUHVVLRQ
LIH[SUHVVLRQ %HFDXVH WKH HOVH SDUW RI DQ LIHOVH LV RSWLRQDO WKHUH FDQ EH FRQIXVLRQ ZKHQ DQ HOVH LV RPLWWHG IURP D QHVWHG LI
VHTXHQFH7KLVLVUHVROYHGE\DOZD\VDVVRFLDWLQJWKHHOVHZLWKWKHFORVHVWSUHYLRXVLIWKDWODFNVDQHOVH,QWKHH[DPSOH
EHORZWKHHOVHJRHVZLWKWKHLQQHULIDVVKRZQE\LQGHQWDWLRQ
LILQGH[!
LIUHJD!UHJE
UHVXOW UHJD
HOVH
HOVHDSSOLHVWRSUHFHGLQJLI
UHVXOW UHJE
,IWKDWDVVRFLDWLRQLVQRWGHVLUHGDEHJLQHQGEORFNVWDWHPHQWVKDOOEHXVHGWRIRUFHWKHSURSHUDVVRFLDWLRQDVVKRZQ
EHORZ
LILQGH[!EHJLQ
LIUHJD!UHJE
UHVXOW UHJD
HQG
HOVHUHVXOW UHJE
,IHOVHLIFRQVWUXFW
7KHIROORZLQJFRQVWUXFWLRQRFFXUVVRRIWHQWKDWLWLVZRUWKDEULHIVHSDUDWHGLVFXVVLRQ
LIBHOVHBLIBVWDWHPHQW
LIH[SUHVVLRQVWDWHPHQWBRUBQXOO
^HOVHLIH[SUHVVLRQVWDWHPHQWBRUBQXOO`
HOVHVWDWHPHQW
6\QWD[³6\QWD[RILIHOVHLIFRQVWUXFW
7KLVVHTXHQFHRILIVWDWHPHQWVNQRZQDVDQLIHOVHLIFRQVWUXFWLVWKHPRVWJHQHUDOZD\RIZULWLQJDPXOWLZD\GHFL
VLRQ7KHH[SUHVVLRQVVKDOOEHHYDOXDWHGLQRUGHULIDQ\H[SUHVVLRQLVWUXHWKHVWDWHPHQWDVVRFLDWHGZLWKLWVKDOOEH
H[HFXWHGDQGWKLVVKDOOWHUPLQDWHWKHZKROHFKDLQ(DFKVWDWHPHQWLVHLWKHUDVLQJOHVWDWHPHQWRUDEORFNRIVWDWH
PHQWV
7KHODVWHOVHSDUWRIWKHLIHOVHLIFRQVWUXFWKDQGOHVWKHQRQHRIWKHDERYHRUGHIDXOWFDVHZKHUHQRQHRIWKHRWKHUFRQ
GLWLRQVZHUHVDWLVÀHG6RPHWLPHVWKHUHLVQRH[SOLFLWDFWLRQIRUWKHGHIDXOWLQWKDWFDVHWKHWUDLOLQJHOVHVWDWHPHQWFDQ
EHRPLWWHGRULWFDQEHXVHGIRUHUURUFKHFNLQJWRFDWFKDQLPSRVVLEOHFRQGLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
7KHIROORZLQJPRGXOHIUDJPHQWXVHVWKHLIHOVHVWDWHPHQWWRWHVWWKHYDULDEOHLQGH[WRGHFLGHZKHWKHURQHRIWKUHH
PRGLI\BVHJQUHJLVWHUVKDVWREHDGGHGWRWKHPHPRU\DGGUHVVDQGZKLFKLQFUHPHQWLVWREHDGGHGWRWKHLQGH[
UHJLVWHU7KHÀUVWWHQOLQHVGHFODUHWKHUHJLVWHUVDQGSDUDPHWHUV
GHFODUHUHJLVWHUVDQGSDUDPHWHUV
UHJ>@LQVWUXFWLRQVHJPHQWBDUHD>@
UHJ>@LQGH[
UHJ>@PRGLI\BVHJ
PRGLI\BVHJ
PRGLI\BVHJ
SDUDPHWHU
VHJPHQW LQFBVHJ VHJPHQW LQFBVHJ VHJPHQW LQFBVHJ GDWD WHVWWKHLQGH[YDULDEOH
LILQGH[VHJPHQWEHJLQ
LQVWUXFWLRQ VHJPHQWBDUHD>LQGH[PRGLI\BVHJ@
LQGH[ LQGH[LQFBVHJ
HQG
HOVHLILQGH[VHJPHQWEHJLQ
LQVWUXFWLRQ VHJPHQWBDUHD>LQGH[PRGLI\BVHJ@
LQGH[ LQGH[LQFBVHJ
HQG
HOVHLILQGH[GDWDEHJLQ
LQVWUXFWLRQ VHJPHQWBDUHD>LQGH[PRGLI\BVHJ@
LQGH[ LQGH[LQFBVHJ
HQG
HOVH
LQVWUXFWLRQ VHJPHQWBDUHD>LQGH[@
&DVHVWDWHPHQW
7KHFDVHVWDWHPHQWLVDPXOWLZD\GHFLVLRQVWDWHPHQWWKDWWHVWVZKHWKHUDQH[SUHVVLRQPDWFKHVRQHRIDQXPEHURI
RWKHUH[SUHVVLRQVDQGEUDQFKHVDFFRUGLQJO\7KHFDVHVWDWHPHQWKDVWKHV\QWD[VKRZQLQ6\QWD[
FDVHBVWDWHPHQW _FDVHH[SUHVVLRQFDVHBLWHP^FDVHBLWHP`HQGFDVH
_FDVH]H[SUHVVLRQFDVHBLWHP^FDVHBLWHP`HQGFDVH
_FDVH[H[SUHVVLRQFDVHBLWHP^FDVHBLWHP`HQGFDVH
FDVHBLWHP H[SUHVVLRQ^H[SUHVVLRQ`VWDWHPHQWBRUBQXOO
_GHIDXOW>@VWDWHPHQWBRUBQXOO
6\QWD[³6\QWD[IRUFDVHVWDWHPHQW
7KHGHIDXOWVWDWHPHQWVKDOOEHRSWLRQDO8VHRIPXOWLSOHGHIDXOWVWDWHPHQWVLQRQHFDVHVWDWHPHQWVKDOOEHLOOHJDO
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHFDVHH[SUHVVLRQDQGWKHFDVHLWHPH[SUHVVLRQFDQEHFRPSXWHGDWUXQWLPHQHLWKHUH[SUHVVLRQLVUHTXLUHGWREHD
FRQVWDQWH[SUHVVLRQ
([DPSOHV
$VLPSOHH[DPSOHRIWKHXVHRIWKHFDVHVWDWHPHQWLVWKHGHFRGLQJRIUHJLVWHUUHJDWRSURGXFHDYDOXHIRUUHVXOWDV
IROORZV
UHJ>@UHJD
UHJ>@UHVXOW
FDVHUHJD
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
·GUHVXOW ·E
GHIDXOWUHVXOW ·E[
HQGFDVH
7KHFDVHLWHPH[SUHVVLRQVVKDOOEHHYDOXDWHGDQGFRPSDUHGLQWKHH[DFWRUGHULQZKLFKWKH\DUHJLYHQ'XULQJWKHOLQ
HDUVHDUFKLIRQHRIWKHFDVHLWHPH[SUHVVLRQVPDWFKHVWKHFDVHH[SUHVVLRQJLYHQLQSDUHQWKHVHVWKHQWKHVWDWHPHQW
DVVRFLDWHGZLWKWKDWFDVHLWHPVKDOOEHH[HFXWHG,IDOOFRPSDULVRQVIDLODQGWKHGHIDXOWLWHPLVJLYHQWKHQWKHGHIDXOW
LWHPVWDWHPHQWVKDOOEHH[HFXWHG,IWKHGHIDXOWVWDWHPHQWLVQRWJLYHQDQGDOORIWKHFRPSDULVRQVIDLOWKHQQRQHRIWKH
FDVHLWHPVWDWHPHQWVVKDOOEHH[HFXWHG
$SDUWIURPV\QWD[WKHFDVHVWDWHPHQWGLIIHUVIURPWKHPXOWLZD\LIHOVHLIFRQVWUXFWLQWZRLPSRUWDQWZD\V
D
7KHFRQGLWLRQDOH[SUHVVLRQVLQWKHLIHOVHLIFRQVWUXFWDUHPRUHJHQHUDOWKDQFRPSDULQJRQHH[SUHVVLRQZLWK
VHYHUDORWKHUVDVLQWKHFDVHVWDWHPHQW
E
7KHFDVHVWDWHPHQWSURYLGHVDGHÀQLWLYHUHVXOWZKHQWKHUHDUH[DQG]YDOXHVLQDQH[SUHVVLRQ
,QDFDVHH[SUHVVLRQFRPSDULVRQWKHFRPSDULVRQRQO\VXFFHHGVZKHQHDFKELWPDWFKHVH[DFWO\ZLWKUHVSHFWWRWKHYDO
XHV[DQG]$VDFRQVHTXHQFHFDUHLVQHHGHGLQVSHFLI\LQJWKHH[SUHVVLRQVLQWKHFDVHVWDWHPHQW7KHELW
OHQJWKRIDOOWKHH[SUHVVLRQVVKDOOEHHTXDOVRWKDWH[DFWELWZLVHPDWFKLQJFDQEHSHUIRUPHG7KHOHQJWKRIDOOWKH
FDVHLWHPH[SUHVVLRQVDVZHOODVWKHFDVHH[SUHVVLRQLQWKHSDUHQWKHVHVVKDOOEHPDGHHTXDOWRWKHOHQJWKRIWKH
ORQJHVWFDVHH[SUHVVLRQDQGFDVHLWHPH[SUHVVLRQ
127(³7KHGHIDXOWOHQJWKRI[DQG]LVVDPHDVWKHGHIDXOWOHQJWKRIDQLQWHJHU
7KHUHDVRQIRUSURYLGLQJDFDVHH[SUHVVLRQFRPSDULVRQWKDWKDQGOHVWKH[DQG]YDOXHVLVWKDWLWSURYLGHVDPHFKD
QLVPIRUGHWHFWLQJVXFKYDOXHVDQGUHGXFLQJWKHSHVVLPLVPWKDWFDQEHJHQHUDWHGE\WKHLUSUHVHQFH
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHXVHRIDFDVHVWDWHPHQWWRKDQGOH[DQG]YDOXHVSURSHUO\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
FDVHVHOHFW>@
·EUHVXOW ·EUHVXOW IODJD
·E[
·E]UHVXOW IODJD"·E[
·EUHVXOW IODJE
·E[
·E]UHVXOW IODJE"·E[
GHIDXOWUHVXOW ·E[
HQGFDVH
,QWKLVH[DPSOHLIVHOHFW>@LVDQGIODJDLVWKHQZKHWKHUWKHYDOXHRIVHOHFW>@LV[RU]UHVXOW
VKRXOGEH³ZKLFKLVUHVROYHGE\WKHWKLUGFDVH
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVDQRWKHUZD\WRXVHDFDVHVWDWHPHQWWRGHWHFW[DQG]YDOXHV
FDVHVLJ
·E]GLVSOD\VLJQDOLVIORDWLQJ
·E[GLVSOD\VLJQDOLVXQNQRZQ
GHIDXOWGLVSOD\VLJQDOLVEVLJ
HQGFDVH
&DVHVWDWHPHQWZLWKGRQ·WFDUHV
7ZRRWKHUW\SHVRIFDVHVWDWHPHQWVDUHSURYLGHGWRDOORZKDQGOLQJRIGRQ·WFDUHFRQGLWLRQVLQWKHFDVHFRPSDULVRQV
2QHRIWKHVHWUHDWVKLJKLPSHGDQFHYDOXHV]DVGRQ·WFDUHVDQGWKHRWKHUWUHDWVERWKKLJKLPSHGDQFHDQGXQNQRZQ
[YDOXHVDVGRQ·WFDUHV
7KHVHFDVHVWDWHPHQWVFDQEHXVHGLQWKHVDPHZD\DVWKHWUDGLWLRQDOFDVHVWDWHPHQWEXWWKH\EHJLQZLWKNH\ZRUGV
FDVH]DQGFDVH[UHVSHFWLYHO\
'RQ·WFDUHYDOXHV]YDOXHVIRUFDVH]]DQG[YDOXHVIRUFDVH[LQDQ\ELWRIHLWKHUWKHFDVHH[SUHVVLRQRUWKHFDVH
LWHPVVKDOOEHWUHDWHGDVGRQ·WFDUHFRQGLWLRQVGXULQJWKHFRPSDULVRQDQGWKDWELWSRVLWLRQVKDOOQRWEHFRQVLGHUHG
7KHGRQ·WFDUHFRQGLWLRQVLQFDVHH[SUHVVLRQFDQEHXVHGWRFRQWUROG\QDPLFDOO\ZKLFKELWVVKRXOGEHFRPSDUHGDW
DQ\WLPH
7KHV\QWD[RIOLWHUDOQXPEHUVDOORZVWKHXVHRIWKHTXHVWLRQPDUN"LQSODFHRI]LQWKHVHFDVHVWDWHPHQWV7KLV
SURYLGHVDFRQYHQLHQWIRUPDWIRUVSHFLÀFDWLRQRIGRQ·WFDUHELWVLQFDVHVWDWHPHQWV
([DPSOHV
([DPSOH³7KHIROORZLQJLVDQH[DPSOHRIWKHFDVH]VWDWHPHQW,WGHPRQVWUDWHVDQLQVWUXFWLRQGHFRGHZKHUHYDOXHV
RIWKHPRVWVLJQLÀFDQWELWVVHOHFWZKLFKWDVNVKRXOGEHFDOOHG,IWKHPRVWVLJQLÀFDQWELWRILULVDWKHQWKHWDVN
LQVWUXFWLRQLVFDOOHGUHJDUGOHVVRIWKHYDOXHVRIWKHRWKHUELWVRILU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
UHJ>@LU
FDVH]LU
·E"""""""LQVWUXFWLRQLU
·E""""""LQVWUXFWLRQLU
·E"""LQVWUXFWLRQLU
·E""LQVWUXFWLRQLU
HQGFDVH
([DPSOH³7KHIROORZLQJLVDQH[DPSOHRIWKHFDVH[VWDWHPHQW,WGHPRQVWUDWHVDQH[WUHPHFDVHRIKRZGRQ·WFDUH
FRQGLWLRQV FDQ EH G\QDPLFDOO\ FRQWUROOHG GXULQJ VLPXODWLRQ ,Q WKLV FDVH LI U E WKHQ WKH WDVN
VWDWLVFDOOHG
UHJ>@UPDVN
PDVN ·E[[[[
FDVH[UAPDVN
·E[[VWDW
·E[[VWDW
·E[[VWDW
·E[[VWDW
HQGFDVH
&RQVWDQWH[SUHVVLRQLQFDVHVWDWHPHQW
$ FRQVWDQW H[SUHVVLRQ FDQ EH XVHG IRU FDVH H[SUHVVLRQ 7KH YDOXH RI WKH FRQVWDQW H[SUHVVLRQ VKDOO EH FRPSDUHG
DJDLQVWFDVHLWHPH[SUHVVLRQV
([DPSOH
7KHIROORZLQJH[DPSOHGHPRQVWUDWHVWKHXVDJHE\PRGHOLQJDELWSULRULW\HQFRGHU
UHJ>@HQFRGH
FDVH
HQFRGH>@GLVSOD\´6HOHFW/LQHµ
HQFRGH>@GLVSOD\´6HOHFW/LQHµ
HQFRGH>@GLVSOD\´6HOHFW/LQHµ
GHIDXOWGLVSOD\´(UURU2QHRIWKHELWVH[SHFWHG21µ
HQGFDVH
1RWHWKDWWKHFDVHH[SUHVVLRQLVDFRQVWDQWH[SUHVVLRQ7KHFDVHLWHPVDUHH[SUHVVLRQVELWVHOHFWVDQGDUHFRP
SDUHGDJDLQVWWKHFRQVWDQWH[SUHVVLRQIRUDPDWFK
/RRSLQJVWDWHPHQWV
7KHUHDUHIRXUW\SHVRIORRSLQJVWDWHPHQWV7KHVHVWDWHPHQWVSURYLGHDPHDQVRIFRQWUROOLQJWKHH[HFXWLRQRIDVWDWH
PHQW]HURRQHRUPRUHWLPHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
IRUHYHU
&RQWLQXRXVO\H[HFXWHVDVWDWHPHQW
UHSHDW
([HFXWHV D VWDWHPHQW D À[HG QXPEHU RI WLPHV ,I WKH H[SUHVVLRQ HYDOXDWHV WR XQNQRZQ RU KLJK
LPSHGDQFHLWVKDOOEHWUHDWHGDV]HURDQGQRVWDWHPHQWVKDOOEHH[HFXWHG
ZKLOH
([HFXWHV D VWDWHPHQW XQWLO DQ H[SUHVVLRQ EHFRPHV IDOVH ,I WKH H[SUHVVLRQ VWDUWV RXW IDOVH WKH
VWDWHPHQWVKDOOQRWEHH[HFXWHGDWDOO
IRU
&RQWUROVH[HFXWLRQRILWVDVVRFLDWHGVWDWHPHQWVE\DWKUHHVWHSSURFHVVDVIROORZV
D
([HFXWHVDQDVVLJQPHQWQRUPDOO\XVHGWRLQLWLDOL]HDUHJLVWHUWKDWFRQWUROVWKHQXPEHURIORRSV
H[HFXWHG
E
(YDOXDWHVDQH[SUHVVLRQ³LIWKHUHVXOWLV]HURWKHIRUORRSVKDOOH[LWDQGLILWLVQRW]HURWKH
IRUORRSVKDOOH[HFXWHLWVDVVRFLDWHGVWDWHPHQWVDQGWKHQSHUIRUPVWHSF,IWKHH[SUHVVLRQ
HYDOXDWHVWRDQXQNQRZQRUKLJKLPSHGDQFHYDOXHLWVKDOOEHWUHDWHGDV]HUR
F
([HFXWHVDQDVVLJQPHQWQRUPDOO\XVHGWRPRGLI\WKHYDOXHRIWKHORRSFRQWUROUHJLVWHUWKHQ
UHSHDWVVWHSE
6\QWD[VKRZVWKHV\QWD[IRUYDULRXVORRSLQJVWDWHPHQWV
ORRSLQJBVWDWHPHQWV IRUHYHUVWDWHPHQW
_UHSHDWH[SUHVVLRQVWDWHPHQW
_ZKLOHH[SUHVVLRQVWDWHPHQW
_IRUUHJBDVVLJQPHQWH[SUHVVLRQUHJBDVVLJQPHQWVWDWHPHQW
6\QWD[³6\QWD[IRUWKHORRSLQJVWDWHPHQWV
7KHUHVWRIWKLVFODXVHSUHVHQWVH[DPSOHVIRUWKUHHRIWKHORRSLQJVWDWHPHQWV7KHIRUHYHUORRSVKRXOGRQO\EHXVHGLQ
FRQMXQFWLRQZLWKWKHWLPLQJFRQWUROVRUWKHGLVDEOHVWDWHPHQWWKHUHIRUHWKLVH[DPSOHLVSUHVHQWHGLQ
([DPSOHV
([DPSOH ³5HSHDW VWDWHPHQW ,Q WKH IROORZLQJ H[DPSOH RI D UHSHDW ORRS DGG DQG VKLIW RSHUDWRUV LPSOHPHQW D
PXOWLSOLHU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
SDUDPHWHUVL]H ORQJVL]H UHJ>VL]H@RSDRSE
UHJ>ORQJVL]H@UHVXOW
EHJLQPXOW
UHJ>ORQJVL]H@VKLIWBRSDVKLIWBRSE
VKLIWBRSD RSD
VKLIWBRSE RSE
UHVXOW UHSHDWVL]HEHJLQ
LIVKLIWBRSE>@
UHVXOW UHVXOWVKLIWBRSD
VKLIWBRSD VKLIWBRSD
VKLIWBRSE VKLIWBRSE!!
HQG
HQG
([DPSOH³:KLOHVWDWHPHQW7KHIROORZLQJH[DPSOHFRXQWVWKHQXPEHURIORJLFYDOXHVLQUHJD
EHJLQFRXQWV
UHJ>@WHPSUHJ
FRXQW WHPSUHJ UHJD
ZKLOHWHPSUHJEHJLQ
LIWHPSUHJ>@
FRXQW FRXQW
WHPSUHJ WHPSUHJ!!
HQG
HQG
([DPSOH ³)RU VWDWHPHQW7KH IRU VWDWHPHQW DFFRPSOLVKHV WKH VDPH UHVXOWV DV WKH IROORZLQJ SVHXGRFRGH WKDW LV
EDVHGRQWKHZKLOHORRS
EHJLQ
LQLWLDOBDVVLJQPHQW
ZKLOHFRQGLWLRQEHJLQ
VWDWHPHQW
VWHSBDVVLJQPHQW
HQG
HQG
7KHIRUORRSLPSOHPHQWVWKLVORJLFZKLOHXVLQJRQO\WZROLQHVDVVKRZQLQWKHSVHXGRFRGHEHORZ
IRULQLWLDOBDVVLJQPHQWFRQGLWLRQVWHSBDVVLJQPHQW
VWDWHPHQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
3URFHGXUDOWLPLQJFRQWUROV
7KH9HULORJ+'/KDVWZRW\SHVRIH[SOLFLWWLPLQJFRQWURORYHUZKHQSURFHGXUDOVWDWHPHQWVFDQRFFXU7KHÀUVWW\SHLV
DGHOD\FRQWUROLQZKLFKDQH[SUHVVLRQVSHFLÀHVWKHWLPHGXUDWLRQEHWZHHQLQLWLDOO\HQFRXQWHULQJWKHVWDWHPHQWDQG
ZKHQWKHVWDWHPHQWDFWXDOO\H[HFXWHV7KHGHOD\H[SUHVVLRQFDQEHDG\QDPLFIXQFWLRQRIWKHVWDWHRIWKHFLUFXLWEXWLW
FDQEHDVLPSOHQXPEHUWKDWVHSDUDWHVVWDWHPHQWH[HFXWLRQVLQWLPH7KHGHOD\FRQWUROLVDQLPSRUWDQWIHDWXUHZKHQ
VSHFLI\LQJVWLPXOXVZDYHIRUPGHVFULSWLRQV,WLVGHVFULEHGLQDQG
7KHVHFRQGW\SHRIWLPLQJFRQWUROLVWKHHYHQWH[SUHVVLRQZKLFKDOORZVVWDWHPHQWH[HFXWLRQWREHGHOD\HGXQWLOWKH
RFFXUUHQFHRIVRPHVLPXODWLRQHYHQWRFFXUULQJLQDSURFHGXUHH[HFXWLQJFRQFXUUHQWO\ZLWKWKLVSURFHGXUH$VLPXOD
WLRQHYHQWFDQEHDFKDQJHRIYDOXHRQDQHWRUUHJLVWHUDQLPSOLFLWHYHQWRUWKHRFFXUUHQFHRIDQH[SOLFLWO\QDPHG
HYHQWWKDWLVWULJJHUHGIURPRWKHUSURFHGXUHVDQH[SOLFLWHYHQW0RVWRIWHQDQHYHQWFRQWUROLVDSRVLWLYHRUQHJDWLYH
HGJHRQDFORFNVLJQDO(YHQWFRQWUROLVGLVFXVVHGLQWKURXJK
7KH SURFHGXUDO VWDWHPHQWV HQFRXQWHUHG VR IDU DOO H[HFXWH ZLWKRXW DGYDQFLQJ VLPXODWLRQ WLPH 6LPXODWLRQ WLPH FDQ
DGYDQFHE\RQHRIWKHIROORZLQJWKUHHPHWKRGV
³ $GHOD\FRQWUROZKLFKLVLQWURGXFHGE\WKHV\PERO
³ $QHYHQWFRQWUROZKLFKLVLQWURGXFHGE\WKHV\PERO#
³ 7KHZDLWVWDWHPHQWZKLFKRSHUDWHVOLNHDFRPELQDWLRQRIWKHHYHQWFRQWURODQGWKHZKLOHORRS
6\QWD[GHVFULEHVWLPLQJFRQWUROLQSURFHGXUDOVWDWHPHQWV
SURFHGXUDOBWLPLQJBFRQWUROBVWDWHPHQW
GHOD\BRUBHYHQWBFRQWUROVWDWHPHQWBRUBQXOO
GHOD\BRUBHYHQWBFRQWURO GHOD\BFRQWURO
_HYHQWBFRQWURO
GHOD\BFRQWURO
GHOD\BYDOXH
_PLQW\SPD[BH[SUHVVLRQ
HYHQWBFRQWURO
#HYHQWBLGHQWLILHU
_#HYHQWBH[SUHVVLRQ
HYHQWBH[SUHVVLRQ H[SUHVVLRQ
_HYHQWBLGHQWLILHU
_SRVHGJHH[SUHVVLRQ
_QHJHGJHH[SUHVVLRQ
_HYHQWBH[SUHVVLRQRUHYHQWBH[SUHVVLRQ
6\QWD[³6\QWD[IRUSURFHGXUDOWLPLQJFRQWURO
7KHJDWHDQGQHWGHOD\VDOVRDGYDQFHVLPXODWLRQWLPHDVGLVFXVVHGLQ6HFWLRQ7KHQH[WVXEFODXVHVGLVFXVVWKHWKUHH
SURFHGXUDOWLPLQJFRQWUROPHWKRGV
'HOD\FRQWURO
$SURFHGXUDOVWDWHPHQWIROORZLQJWKHGHOD\FRQWUROVKDOOEHGHOD\HGLQLWVH[HFXWLRQZLWKUHVSHFWWRWKHSURFHGXUDO
VWDWHPHQWSUHFHGLQJWKHGHOD\FRQWUROE\WKHVSHFLÀHGGHOD\,IWKHGHOD\H[SUHVVLRQHYDOXDWHVWRDQXQNQRZQRUKLJK
LPSHGDQFHYDOXHLWVKDOOEHLQWHUSUHWHGDV]HURGHOD\,IWKHGHOD\H[SUHVVLRQHYDOXDWHVWRDQHJDWLYHYDOXHLWVKDOOEH
LQWHUSUHWHGDVD·VFRPSOHPHQWXQVLJQHGLQWHJHURIWKHVDPHVL]HDVDWLPHYDULDEOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHGHOD\VWKHH[HFXWLRQRIWKHDVVLJQPHQWE\WLPHXQLWV
UHJD UHJE
([DPSOH³7KHQH[WWKUHHH[DPSOHVSURYLGHDQH[SUHVVLRQIROORZLQJWKHQXPEHUVLJQ([HFXWLRQRIWKHDVVLJQ
PHQWLVGHOD\HGE\WKHDPRXQWRIVLPXODWLRQWLPHVSHFLÀHGE\WKHYDOXHRIWKHH[SUHVVLRQ
GUHJD UHJE
GLVGHILQHGDVDSDUDPHWHU
GHUHJD UHJEGHOD\LVDYHUDJHRIGDQGH
UHJUUHJU UHJU GHOD\LVWKHYDOXHLQUHJU
(YHQWFRQWURO
7KHH[HFXWLRQRIDSURFHGXUDOVWDWHPHQWFDQEHV\QFKURQL]HGZLWKDYDOXHFKDQJHRQDQHWRUUHJLVWHURUWKHRFFXU
UHQFHRIDGHFODUHGHYHQW7KHYDOXHFKDQJHVRQQHWVDQGUHJLVWHUVFDQEHXVHGDVHYHQWVWRWULJJHUWKHH[HFXWLRQRID
VWDWHPHQW7KLVLVNQRZQDVGHWHFWLQJDQLPSOLFLWHYHQW7KHHYHQWFDQDOVREHEDVHGRQWKHGLUHFWLRQRIWKHFKDQJH³
WKDWLVWRZDUGVWKHYDOXHSRVHGJHRUWRZDUGVWKHYDOXHQHJHGJH7KHEHKDYLRURISRVHGJHDQGQHJHGJHHYHQW
LVVKRZQLQ7DEOHDQGFDQEHGHVFULEHGDVIROORZV
³ $QHJHGJHVKDOOEHGHWHFWHGRQWKHWUDQVLWLRQIURPWR[]RUDQGIURP[RU]WR
³ $SRVHGJHVKDOOEHGHWHFWHGRQWKHWUDQVLWLRQIURPWR[]RUDQGIURP[RU]WR
7DEOH³'HWHFWLQJSRVHGJHDQGQHJHGJH
7R
[
]
1RHGJH
SRVHGJH
SRVHGJH
SRVHGJH
QHJHGJH
1RHGJH
QHJHGJH
QHJHGJH
[
QHJHGJH
SRVHGJH
1RHGJH
1RHGJH
]
QHJHGJH
SRVHGJH
1RHGJH
1RHGJH
)URP
,IWKHH[SUHVVLRQHYDOXDWHVWRPRUHWKDQDELWUHVXOWWKHHGJHWUDQVLWLRQVKDOOEHGHWHFWHGRQWKHOHDVWVLJQLÀFDQWELW
RIWKHUHVXOW7KHFKDQJHRIYDOXHLQDQ\RIWKHRSHUDQGVZLWKRXWDFKDQJHLQWKHYDOXHRIWKHOHDVWVLJQLÀFDQWELWRIWKH
H[SUHVVLRQUHVXOWVKDOOQRWEHGHWHFWHGDVDQHGJH
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVLOOXVWUDWLRQVRIHGJHFRQWUROOHGVWDWHPHQWV
#UUHJD UHJEFRQWUROOHGE\DQ\YDOXHFKDQJHLQWKHUHJLVWHUU
#SRVHGJHFORFNUHJD UHJE
FRQWUROOHGE\SRVHGJHRQFORFN
IRUHYHU#QHJHGJHFORFNUHJD UHJEFRQWUROOHGE\QHJDWLYHHGJH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
1DPHGHYHQWV
$QHZGDWDW\SHLQDGGLWLRQWRQHWDQGUHJLVWHUFDOOHG´HYHQWµFDQEHGHFODUHG$QLGHQWLÀHUGHFODUHGDVDQHYHQWGDWD
W\SHLVFDOOHGDQDPHGHYHQW$QDPHGHYHQWFDQEHWULJJHUHGH[SOLFLWO\,WFDQEHXVHGLQDQHYHQWH[SUHVVLRQWRFRQ
WUROWKHH[HFXWLRQRISURFHGXUDOVWDWHPHQWVLQWKHVDPHPDQQHUDVHYHQWFRQWUROGHVFULEHGLQ1DPHGHYHQWVFDQ
EHPDGHWRRFFXUIURPDSURFHGXUH7KLVDOORZVFRQWURORYHUWKHHQDEOLQJRIPXOWLSOHDFWLRQVLQRWKHUSURFHGXUHV
$QHYHQWQDPHVKDOOEHGHFODUHGH[SOLFLWO\EHIRUHLWLVXVHG6\QWD[JLYHVWKHV\QWD[IRUGHFODULQJHYHQWV
HYHQWBGHFODUDWLRQ HYHQWHYHQWBLGHQWLILHU^HYHQWBLGHQWLILHU`
6\QWD[³6\QWD[IRUHYHQWGHFODUDWLRQ
$QHYHQWVKDOOQRWKROGDQ\GDWD7KHIROORZLQJDUHWKHFKDUDFWHULVWLFVRIDQDPHGHYHQW
³ ,WFDQEHPDGHWRRFFXUDWDQ\SDUWLFXODUWLPH
³ ,WKDVQRWLPHGXUDWLRQ
³ ,WVRFFXUUHQFHFDQEHUHFRJQL]HGE\XVLQJWKHHYHQWFRQWUROV\QWD[GHVFULEHGLQ
$GHFODUHGHYHQWLVPDGHWRRFFXUE\WKHDFWLYDWLRQRIDQHYHQWWULJJHULQJVWDWHPHQWZLWKWKHV\QWD[JLYHQLQ6\QWD[
HYHQWBWULJJHU !HYHQWBLGHQWLILHU
6\QWD[³6\QWD[IRUHYHQWWULJJHU
$QHYHQWFRQWUROOHGVWDWHPHQWIRUH[DPSOH#WULJUHJD UHJEVKDOOFDXVHVLPXODWLRQRILWVFRQWDLQLQJSUR
FHGXUHWRZDLWXQWLOVRPHRWKHUSURFHGXUHH[HFXWHVWKHDSSURSULDWHHYHQWWULJJHULQJVWDWHPHQWIRUH[DPSOH
!WULJ
1DPHGHYHQWVDQGHYHQWFRQWUROJLYHDSRZHUIXODQGHIÀFLHQWPHDQVRIGHVFULELQJWKHFRPPXQLFDWLRQEHWZHHQDQG
V\QFKURQL]DWLRQRIWZRRUPRUHFRQFXUUHQWO\DFWLYHSURFHVVHV$EDVLFH[DPSOHRIWKLVLVDVPDOOZDYHIRUPFORFN
JHQHUDWRUWKDWV\QFKURQL]HVFRQWURORIDV\QFKURQRXVFLUFXLWE\VLJQDOOLQJWKHRFFXUUHQFHRIDQH[SOLFLWHYHQWSHULRGL
FDOO\ZKLOHWKHFLUFXLWZDLWVIRUWKHHYHQWWRRFFXU
(YHQWRURSHUDWRU
7KHORJLFDORURIDQ\QXPEHURIHYHQWVFDQEHH[SUHVVHGVXFKWKDWWKHRFFXUUHQFHRIDQ\RQHRIWKHHYHQWVWULJJHUVWKH
H[HFXWLRQRIWKHSURFHGXUDOVWDWHPHQWWKDWIROORZVLW7KHNH\ZRUGRULVXVHGDVDQHYHQWORJLFDORURSHUDWRU
([DPSOHV
7KHQH[WWZRH[DPSOHVVKRZWKHORJLFDORURIWZRDQGWKUHHHYHQWVUHVSHFWLYHO\
#WULJRUHQDEOHUHJD UHJE
FRQWUROOHGE\WULJRUHQDEOH
#SRVHGJHFONBDRUSRVHGJHFONBERUWULJUHJD UHJE
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
/HYHOVHQVLWLYHHYHQWFRQWURO
7KHH[HFXWLRQRIDSURFHGXUDOVWDWHPHQWFDQDOVREHGHOD\HGXQWLODFRQGLWLRQEHFRPHVWUXH7KLVLVDFFRPSOLVKHG
XVLQJWKHZDLWVWDWHPHQWZKLFKLVDVSHFLDOIRUPRIHYHQWFRQWURO7KHQDWXUHRIWKHZDLWVWDWHPHQWLVOHYHOVHQVLWLYH
DVRSSRVHGWREDVLFHYHQWFRQWUROVSHFLÀHGE\WKH#FKDUDFWHUZKLFKLVHGJHVHQVLWLYH
7KHZDLWVWDWHPHQWVKDOOHYDOXDWHDFRQGLWLRQDQGLILWLVIDOVHWKHSURFHGXUDOVWDWHPHQWVIROORZLQJWKHZDLWVWDWHPHQW
VKDOOUHPDLQEORFNHGXQWLOWKDWFRQGLWLRQEHFRPHVWUXHEHIRUHFRQWLQXLQJ7KHZDLWVWDWHPHQWKDVWKHIRUPJLYHQLQ
6\QWD[
ZDLWBVWDWHPHQW
ZDLWH[SUHVVLRQVWDWHPHQWBRUBQXOO
6\QWD[³6\QWD[IRUZDLWVWDWHPHQW
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVWKHXVHRIWKHZDLWVWDWHPHQWWRDFFRPSOLVKOHYHOVHQVLWLYHHYHQWFRQWURO
EHJLQ
ZDLWHQDEOHD E
F G
HQG
,IWKHYDOXHRIHQDEOHLVZKHQWKHEORFNLVHQWHUHGWKHZDLWVWDWHPHQWZLOOGHOD\WKHHYDOXDWLRQRIWKHQH[WVWDWH
PHQW D EXQWLOWKHYDOXHRIHQDEOHFKDQJHVWR,IHQDEOHLVDOUHDG\ZKHQWKHEHJLQHQG
EORFNLVHQWHUHGWKHQWKHDVVLJQPHQW´D EµLVHYDOXDWHGDIWHUDGHOD\RIDQGQRDGGLWLRQDOGHOD\RFFXUV
,QWUDDVVLJQPHQWWLPLQJFRQWUROV
7KHGHOD\DQGHYHQWFRQWUROFRQVWUXFWVSUHYLRXVO\GHVFULEHGSUHFHGHDVWDWHPHQWDQGGHOD\LWVH[HFXWLRQ,QFRQWUDVW
WKHLQWUDDVVLJQPHQWGHOD\DQGHYHQWFRQWUROVDUHFRQWDLQHGZLWKLQDQDVVLJQPHQWVWDWHPHQWDQGPRGLI\WKHÁRZRI
DFWLYLW\LQDGLIIHUHQWZD\7KLVVXEFODXVHGHVFULEHVWKHSXUSRVHRILQWUDDVVLJQPHQWWLPLQJFRQWUROVDQGWKHUHSHDW
WLPLQJFRQWUROWKDWFDQEHXVHGLQLQWUDDVVLJQPHQWGHOD\V
$QLQWUDDVVLJQPHQWGHOD\RUHYHQWFRQWUROVKDOOGHOD\WKHDVVLJQPHQWRIWKHQHZYDOXHWRWKHOHIWKDQGVLGHEXWWKH
ULJKWKDQGVLGHH[SUHVVLRQVKDOOEHHYDOXDWHGEHIRUHWKHGHOD\LQVWHDGRIDIWHUWKHGHOD\7KHV\QWD[IRULQWUDDVVLJQ
PHQWGHOD\DQGHYHQWFRQWUROLVJLYHQLQ6\QWD[
LQWUDBDVVLJQPHQWBWLPLQJBFRQWUROBVWDWHPHQW UHJBOYDOXH >LQWUDBDVVLJQPHQWBWLPLQJBFRQWURO@H[SUHVVLRQ
_UHJBOYDOXH >LQWUDBDVVLJQPHQWBWLPLQJBFRQWURO@H[SUHVVLRQ
LQWUDBDVVLJQPHQWBWLPLQJBFRQWURO
GHOD\BFRQWURO
_HYHQWBFRQWURO
_UHSHDWBHYHQWBFRQWURO
UHSHDWBHYHQWBFRQWURO UHSHDWH[SUHVVLRQ#HYHQWBH[SUHVVLRQ
6\QWD[³6\QWD[IRULQWUDDVVLJQPHQWGHOD\DQGHYHQWFRQWURO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHLQWUDDVVLJQPHQWGHOD\DQGHYHQWFRQWUROFDQEHDSSOLHGWRERWKEORFNLQJDVVLJQPHQWVDQGQRQEORFNLQJDVVLJQ
PHQWV7KHHYHQWH[SUHVVLRQVKDOOEHUHVROYHGWRDELWYDOXH7KHUHSHDWHYHQWFRQWUROVKDOOVSHFLI\DQLQWUDDVVLJQ
PHQWGHOD\RIDVSHFLÀHGQXPEHURIRFFXUUHQFHVRIDQHYHQW7KLVFRQVWUXFWLVFRQYHQLHQWZKHQHYHQWVKDYHWREH
V\QFKURQL]HGZLWKFRXQWVRIFORFNVLJQDOV
([DPSOHV
7DEOHLOOXVWUDWHVWKHSKLORVRSK\RILQWUDDVVLJQPHQWWLPLQJFRQWUROVE\VKRZLQJWKHFRGHWKDWFRXOGDFFRPSOLVK
WKHVDPHWLPLQJHIIHFWZLWKRXWXVLQJLQWUDDVVLJQPHQW
7DEOH³,QWUDDVVLJQPHQWWLPLQJFRQWUROHTXLYDOHQFH
,QWUDDVVLJQPHQWWLPLQJFRQWURO
:LWKLQWUDDVVLJQPHQWFRQVWUXFW
:LWKRXWLQWUDDVVLJQPHQWFRQVWUXFW
EHJLQ
WHPS E
D WHPS
HQG
D E
EHJLQ
WHPS E
#SRVHGJHFOND WHPS
HQG
D #SRVHGJHFONE
D UHSHDW
#SRVHGJHFONE
EHJLQ
WHPS E
#SRVHGJHFON
#SRVHGJHFON
#SRVHGJHFOND WHPS
HQG
7KHQH[WWKUHHH[DPSOHVXVHWKHIRUNMRLQEHKDYLRUDOFRQVWUXFW$OOVWDWHPHQWVEHWZHHQWKHNH\ZRUGVIRUNDQGMRLQ
H[HFXWHFRQFXUUHQWO\7KLVFRQVWUXFWLVGHVFULEHGLQPRUHGHWDLOLQ
7KHIROORZLQJH[DPSOHVKRZVDUDFHFRQGLWLRQWKDWFRXOGEHSUHYHQWHGE\XVLQJLQWUDDVVLJQPHQWWLPLQJFRQWURO
IRUN
MRLQ
D E
E D
7KHFRGHLQWKLVH[DPSOHVDPSOHVDQGVHWVWKHYDOXHVRIERWKDDQGEDWWKHVDPHVLPXODWLRQWLPHWKHUHE\FUHDWLQJD
UDFHFRQGLWLRQ7KHLQWUDDVVLJQPHQWIRUPRIWLPLQJFRQWUROXVHGLQWKHQH[WH[DPSOHSUHYHQWVWKLVUDFHFRQGLWLRQ
IRUN
MRLQ
D E
E D
GDWDVZDS
,QWUDDVVLJQPHQWWLPLQJFRQWUROZRUNVEHFDXVHWKHLQWUDDVVLJQPHQWGHOD\FDXVHVWKHYDOXHVRIDDQGEWREHHYDOX
DWHG EHIRUH WKH GHOD\ DQG WKH DVVLJQPHQWV WR EH PDGH DIWHU WKH GHOD\ 6RPH H[LVWLQJ WRROV WKDW LPSOHPHQW LQWUD
DVVLJQPHQWWLPLQJFRQWUROXVHWHPSRUDU\VWRUDJHLQHYDOXDWLQJHDFKH[SUHVVLRQRQWKHULJKWKDQGVLGH
,QWUDDVVLJQPHQWZDLWLQJIRUHYHQWVLVDOVRHIIHFWLYH,QWKHIROORZLQJH[DPSOHWKHULJKWKDQGVLGHH[SUHVVLRQVDUH
HYDOXDWHGZKHQWKHDVVLJQPHQWVWDWHPHQWVDUHHQFRXQWHUHGEXWWKHDVVLJQPHQWVDUHGHOD\HGXQWLOWKHULVLQJHGJHRI
WKHFORFNVLJQDO
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
IRUN
MRLQ
D #SRVHGJHFONE
E #SRVHGJHFONF
,(((
6WG
GDWDVKLIW
7KHIROORZLQJLVDQH[DPSOHRIDUHSHDWHYHQWFRQWURODVWKHLQWUDDVVLJQPHQWGHOD\RIDQRQEORFNLQJDVVLJQPHQW
D UHSHDW#SRVHGJHFONGDWD
)LJXUHLOOXVWUDWHVWKHDFWLYLWLHVWKDWUHVXOWIURPWKLVUHSHDWHYHQWFRQWURO
GDWDLVHYDOXDWHG
FON
GDWD
D
)LJXUH³5HSHDWHYHQWFRQWUROXWLOL]LQJDFORFNHGJH
,Q WKLV H[DPSOH WKH YDOXH RI GDWD LV HYDOXDWHG ZKHQ WKH DVVLJQPHQW LV HQFRXQWHUHG $IWHU ÀYH RFFXUUHQFHV RI
SRVHGJHFONDLVDVVLJQHGWKHYDOXHRIGDWD
7KHIROORZLQJLVDQH[DPSOHRIDUHSHDWHYHQWFRQWURODVWKHLQWUDDVVLJQPHQWGHOD\RIDSURFHGXUDODVVLJQPHQW
D UHSHDWQXP#FONGDWD
,QWKLVH[DPSOHWKHYDOXHRIGDWDLVHYDOXDWHGZKHQWKHDVVLJQPHQWLVHQFRXQWHUHG$IWHUWKHQXPEHURIWUDQVLWLRQV
RIFONHTXDOVWKHYDOXHRIQXPDLVDVVLJQHGWKHYDOXHRIGDWD
7KHIROORZLQJLVDQH[DPSOHRIDUHSHDWHYHQWFRQWUROZLWKH[SUHVVLRQVFRQWDLQLQJRSHUDWLRQVWRVSHFLI\ERWKWKHQXP
EHURIHYHQWRFFXUUHQFHVDQGWKHHYHQWWKDWLVFRXQWHG
D UHSHDWDE#SRVHGJHSKLRUQHJHGJHSKLGDWD
,QWKLVH[DPSOHWKHYDOXHRIGDWDLVHYDOXDWHGZKHQWKHDVVLJQPHQWLVHQFRXQWHUHG$IWHUWKHVXPRIWKHSRVLWLYH
HGJHVRISKLDQGWKHQHJDWLYHHGJHVRISKLHTXDOVWKHVXPRIDDQGEDLVDVVLJQHGWKHYDOXHRIGDWD(YHQLI
SRVHGJHSKLDQGQHJHGJHSKLRFFXUUHGDWWKHVDPHVLPXODWLRQWLPHHDFKZLOOEHGHWHFWHGVHSDUDWHO\
%ORFNVWDWHPHQWV
7KHEORFNVWDWHPHQWVDUHDPHDQVRIJURXSLQJWZRRUPRUHVWDWHPHQWVWRJHWKHUVRWKDWWKH\DFWV\QWDFWLFDOO\OLNHDVLQ
JOHVWDWHPHQW7KHUHDUHWZRW\SHVRIEORFNVLQWKH9HULORJ+'/
³
³
6HTXHQWLDOEORFNDOVRFDOOHGEHJLQHQGEORFN
3DUDOOHOEORFNDOVRFDOOHGIRUNMRLQEORFN
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH VHTXHQWLDO EORFN VKDOO EH GHOLPLWHG E\ WKH NH\ZRUGV EHJLQ DQG HQG7KH SURFHGXUDO VWDWHPHQWV LQ VHTXHQWLDO
EORFNVKDOOEHH[HFXWHGVHTXHQWLDOO\LQWKHJLYHQRUGHU
7KHSDUDOOHOEORFNVKDOOEHGHOLPLWHGE\WKHNH\ZRUGVIRUNDQGMRLQ7KHSURFHGXUDOVWDWHPHQWVLQSDUDOOHOEORFNVKDOO
EHH[HFXWHGFRQFXUUHQWO\
6HTXHQWLDOEORFNV
$VHTXHQWLDOEORFNVKDOOKDYHWKHIROORZLQJFKDUDFWHULVWLFV
³ 6WDWHPHQWVVKDOOEHH[HFXWHGLQVHTXHQFHRQHDIWHUDQRWKHU
³ 'HOD\YDOXHVIRUHDFKVWDWHPHQWVKDOOEHWUHDWHGUHODWLYHWRWKHVLPXODWLRQWLPHRIWKHH[HFXWLRQRIWKHSUHYLRXV
VWDWHPHQW
³ &RQWUROVKDOOSDVVRXWRIWKHEORFNDIWHUWKHODVWVWDWHPHQWH[HFXWHV
6\QWD[JLYHVWKHIRUPDOV\QWD[IRUDVHTXHQWLDOEORFN
VHTBEORFN EHJLQ>EORFNBLGHQWLILHU^EORFNBLWHPBGHFODUDWLRQ`@^VWDWHPHQW`HQG
EORFNBLWHPBGHFODUDWLRQ SDUDPHWHUBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
_LQWHJHUBGHFODUDWLRQ
_UHDOBGHFODUDWLRQ
_WLPHBGHFODUDWLRQ
_UHDOWLPHBGHFODUDWLRQ
_HYHQWBGHFODUDWLRQ
6\QWD[³6\QWD[IRUWKHVHTXHQWLDOEORFN
([DPSOHV
([DPSOH³$VHTXHQWLDOEORFNHQDEOHVWKHIROORZLQJWZRDVVLJQPHQWVWRKDYHDGHWHUPLQLVWLFUHVXOW
EHJLQ
DUHJ EUHJ
FUHJ DUHJ
HQG
FUHJVWRUHVWKHYDOXHRIEUHJ
7KHÀUVWDVVLJQPHQWLVSHUIRUPHGDQGDUHJLVXSGDWHGEHIRUHFRQWUROSDVVHVWRWKHVHFRQGDVVLJQPHQW
([DPSOH³'HOD\FRQWUROFDQEHXVHGLQDVHTXHQWLDOEORFNWRVHSDUDWHWKHWZRDVVLJQPHQWVLQWLPH
EHJLQ
DUHJ EUHJ
#SRVHGJHFORFNFUHJ DUHJDVVLJQPHQWGHOD\HGXQWLO
HQG
SRVHGJHRQFORFN
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
([DPSOH ³7KH IROORZLQJ H[DPSOH VKRZV KRZ WKH FRPELQDWLRQ RI WKH VHTXHQWLDO EORFN DQG GHOD\ FRQWURO FDQ EH
XVHGWRVSHFLI\DWLPHVHTXHQFHGZDYHIRUP
SDUDPHWHUG UHJ>@U
GGHFODUHGDVDSDUDPHWHUDQG
UGHFODUHGDVDQELWUHJLVWHU
EHJLQ DZDYHIRUPFRQWUROOHGE\VHTXHQWLDOGHOD\
GU ·K
GU ·K(
GU ·K
GU ·K)
G!HQGBZDYHWULJJHUDQHYHQWFDOOHGHQGBZDYH
HQG
3DUDOOHOEORFNV
$SDUDOOHOEORFNVKDOOKDYHWKHIROORZLQJFKDUDFWHULVWLFV
³
³
³
³
6WDWHPHQWVVKDOOH[HFXWHFRQFXUUHQWO\
'HOD\YDOXHVIRUHDFKVWDWHPHQWVKDOOEHFRQVLGHUHGUHODWLYHWRWKHVLPXODWLRQWLPHRIHQWHULQJWKHEORFN
'HOD\FRQWUROFDQEHXVHGWRSURYLGHWLPHRUGHULQJIRUDVVLJQPHQWV
&RQWUROVKDOOSDVVRXWRIWKHEORFNZKHQWKHODVWWLPHRUGHUHGVWDWHPHQWH[HFXWHV
6\QWD[JLYHVWKHIRUPDOV\QWD[IRUDSDUDOOHOEORFN
SDUBEORFN IRUN>EORFNBLGHQWLILHU^EORFNBLWHPBGHFODUDWLRQ`@^VWDWHPHQW`MRLQ
6\QWD[³6\QWD[IRUWKHSDUDOOHOEORFN
7KHWLPLQJFRQWUROVLQDIRUNMRLQEORFNGRQRWKDYHWREHRUGHUHGVHTXHQWLDOO\LQWLPH
([DPSOH
7KHIROORZLQJH[DPSOHFRGHVWKHZDYHIRUPGHVFULSWLRQVKRZQLQH[DPSOHRIE\XVLQJDSDUDOOHOEORFNLQVWHDG
RIDVHTXHQWLDOEORFN7KHZDYHIRUPSURGXFHGRQWKHUHJLVWHULVH[DFWO\WKHVDPHIRUERWKLPSOHPHQWDWLRQV
IRUN
U ·K
U ·K(
U ·K
U ·K)
!HQGBZDYH
MRLQ
%ORFNQDPHV
%RWKVHTXHQWLDODQGSDUDOOHOEORFNVFDQEHQDPHGE\DGGLQJQDPHBRIBEORFNDIWHUWKHNH\ZRUGVEHJLQRUIRUN
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHQDPLQJRIEORFNVVHUYHVVHYHUDOSXUSRVHV
³ ,WDOORZVORFDOUHJLVWHUVWREHGHFODUHGIRUWKHEORFN
³ ,WDOORZVWKHEORFNWREHUHIHUHQFHGLQVWDWHPHQWVVXFKDVWKHGLVDEOHVWDWHPHQW6HFWLRQ
$OOUHJLVWHUVVKDOOEHVWDWLF³WKDWLVDXQLTXHORFDWLRQH[LVWVIRUDOOUHJLVWHUVDQGOHDYLQJRUHQWHULQJEORFNVVKDOOQRW
DIIHFWWKHYDOXHVVWRUHGLQWKHP
7KHEORFNQDPHVJLYHDPHDQVRIXQLTXHO\LGHQWLI\LQJDOOUHJLVWHUVDWDQ\VLPXODWLRQWLPH
6WDUWDQGÀQLVKWLPHV
%RWKVHTXHQWLDODQGSURFHGXUDOEORFNVKDYHWKHQRWLRQRIDVWDUWDQGÀQLVKWLPH)RUVHTXHQWLDOEORFNVWKHVWDUWWLPH
LVZKHQWKHÀUVWVWDWHPHQWLVH[HFXWHGDQGWKHÀQLVKWLPHLVZKHQWKHODVWVWDWHPHQWKDVEHHQH[HFXWHG)RUSDUDOOHO
EORFNVWKHVWDUWWLPHLVWKHVDPHIRUDOOWKHVWDWHPHQWVDQGWKHÀQLVKWLPHLVZKHQWKHODVWWLPHRUGHUHGVWDWHPHQWKDV
EHHQH[HFXWHG
6HTXHQWLDO DQG SDUDOOHO EORFNV FDQ EH HPEHGGHG ZLWKLQ HDFK RWKHU DOORZLQJ FRPSOH[ FRQWURO VWUXFWXUHV WR EH
H[SUHVVHGHDVLO\DQGZLWKDKLJKGHJUHHRIVWUXFWXUH:KHQEORFNVDUHHPEHGGHGZLWKLQHDFKRWKHUWKHWLPLQJRI
ZKHQDEORFNVWDUWVDQGÀQLVKHVLVLPSRUWDQW([HFXWLRQVKDOOQRWFRQWLQXHWRWKHVWDWHPHQWIROORZLQJDEORFNXQWLOWKH
ÀQLVKWLPHIRUWKHEORFNKDVEHHQUHDFKHG³WKDWLVXQWLOWKHEORFNKDVFRPSOHWHO\ÀQLVKHGH[HFXWLQJ
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVWKHVWDWHPHQWVIURPWKHH[DPSOHLQZULWWHQLQWKHUHYHUVHRUGHUDQG
VWLOOSURGXFLQJWKHVDPHZDYHIRUP
IRUN
!HQGBZDYH
U ·K)
U ·K
U ·K(
U ·K
MRLQ
([DPSOH ³:KHQ DQ DVVLJQPHQW LV WR EH PDGH DIWHU WZR VHSDUDWH HYHQWV KDYH RFFXUUHG NQRZQ DV WKH MRLQLQJ RI
HYHQWVDIRUNMRLQEORFNFDQEHXVHIXO
EHJLQ
IRUN
HQG
#$HYHQW
#%HYHQW
MRLQ
DUHJ EUHJ
7KHWZRHYHQWVFDQRFFXULQDQ\RUGHURUHYHQDWWKHVDPHVLPXODWLRQWLPHDQGWKHIRUNMRLQEORFNZLOOFRP
SOHWHDQGWKHDVVLJQPHQWZLOOEHPDGH,QFRQWUDVWWRWKLVLIWKHIRUNMRLQEORFNZDVDEHJLQHQGEORFNDQGWKH
%HYHQWRFFXUUHGEHIRUHWKH$HYHQWWKHQWKHEORFNZRXOGEHZDLWLQJIRUWKHQH[W%HYHQW
([DPSOH³7KLVH[DPSOHVKRZVWZRVHTXHQWLDOEORFNVHDFKRIZKLFKZLOOH[HFXWHZKHQLWVFRQWUROOLQJHYHQWRFFXUV
%HFDXVHWKHHYHQWFRQWUROVDUHZLWKLQDIRUNMRLQEORFNWKH\H[HFXWHLQSDUDOOHODQGWKHVHTXHQWLDOEORFNVFDQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
WKHUHIRUHDOVRH[HFXWHLQSDUDOOHO
IRUN
#HQDEOHBD
EHJLQ
WDZD
WDZD
WDZD
HQG
#HQDEOHBE
EHJLQ
WEZE
WEZE
WEZE
HQG
MRLQ
6WUXFWXUHGSURFHGXUHV
$OOSURFHGXUHVLQWKH9HULORJ+'/DUHVSHFLÀHGZLWKLQRQHRIWKHIROORZLQJIRXUVWDWHPHQWV
³ LQLWLDOFRQVWUXFW
³ DOZD\VFRQVWUXFW
³ 7DVN
³ )XQFWLRQ
7KHLQLWLDODQGDOZD\VFRQVWUXFWVDUHHQDEOHGDWWKHEHJLQQLQJRIDVLPXODWLRQ7KHLQLWLDOFRQVWUXFWVKDOOH[HFXWHRQO\
RQFH DQG LWV DFWLYLW\ VKDOO FHDVH ZKHQ WKH VWDWHPHQW KDV ÀQLVKHG ,Q FRQWUDVW WKH DOZD\V FRQVWUXFW VKDOO H[HFXWH
UHSHDWHGO\,WVDFWLYLW\VKDOOFHDVHRQO\ZKHQWKHVLPXODWLRQLVWHUPLQDWHG7KHUHVKDOOEHQRLPSOLHGRUGHURIH[HFX
WLRQ EHWZHHQ LQLWLDO DQG DOZD\V FRQVWUXFWV 7KH LQLWLDO FRQVWUXFWV QHHG QRW EH VFKHGXOHG DQG H[HFXWHG EHIRUH WKH
DOZD\VFRQVWUXFWV7KHUHVKDOOEHQROLPLWWRWKHQXPEHURILQLWLDODQGDOZD\VFRQVWUXFWVWKDWFDQEHGHÀQHGLQDPRG
XOH
7DVNVDQGIXQFWLRQVDUHSURFHGXUHVWKDWDUHHQDEOHGIURPRQHRUPRUHSODFHVLQRWKHUSURFHGXUHV7DVNVDQGIXQFWLRQV
DUHGHVFULEHGLQ6HFWLRQ
,QLWLDOFRQVWUXFW
7KHV\QWD[IRUWKHLQLWLDOFRQVWUXFWLVJLYHQLQ6\QWD[
LQLWLDOBFRQVWUXFW LQLWLDOVWDWHPHQW
6\QWD[³6\QWD[IRULQLWLDOFRQVWUXFW
([DPSOHV
7KHIROORZLQJH[DPSOHLOOXVWUDWHVXVHRIWKHLQLWLDOFRQVWUXFWIRULQLWLDOL]DWLRQRIYDULDEOHVDWWKHVWDUWRIVLPXODWLRQ
6HFWLRQ
,(((
6WG
LQLWLDOEHJLQ
DUHJ LQLWLDOL]HDUHJLVWHU
IRULQGH[ LQGH[VL]HLQGH[ LQGH[
PHPRU\>LQGH[@ LQLWLDOL]HPHPRU\ZRUG
HQG
$QRWKHUW\SLFDOXVDJHRIWKHLQLWLDOFRQVWUXFWLVVSHFLÀFDWLRQRIZDYHIRUPGHVFULSWLRQVWKDWH[HFXWHRQFHWRSURYLGH
VWLPXOXVWRWKHPDLQSDUWRIWKHFLUFXLWEHLQJVLPXODWHG
LQLWLDOEHJLQ
LQSXWV ·ELQLWLDOL]HDWWLPH]HUR
LQSXWV ·EILUVWSDWWHUQ
LQSXWV ·EVHFRQGSDWWHUQ
LQSXWV ·EWKLUGSDWWHUQ
LQSXWV ·EODVWSDWWHUQ
HQG
$OZD\VFRQVWUXFW
7KHDOZD\VFRQVWUXFWUHSHDWVFRQWLQXRXVO\WKURXJKRXWWKHGXUDWLRQRIWKHVLPXODWLRQ6\QWD[VKRZVWKHV\QWD[
IRUWKHDOZD\VFRQVWUXFW
DOZD\VBFRQVWUXFW DOZD\VVWDWHPHQW
6\QWD[³6\QWD[IRUDOZD\VFRQVWUXFW
7KHDOZD\VFRQVWUXFWEHFDXVHRILWVORRSLQJQDWXUHLVRQO\XVHIXOZKHQXVHGLQFRQMXQFWLRQZLWKVRPHIRUPRIWLP
LQJFRQWURO,IDQDOZD\VFRQVWUXFWKDVQRFRQWUROIRUVLPXODWLRQWLPHWRDGYDQFHLWZLOOFUHDWHDVLPXODWLRQGHDGORFN
FRQGLWLRQ7KHIROORZLQJFRGHIRUH[DPSOHFUHDWHVD]HURGHOD\LQÀQLWHORRS
DOZD\VDUHJ aDUHJ
3URYLGLQJDWLPLQJFRQWUROWRWKHDERYHFRGHFUHDWHVDSRWHQWLDOO\XVHIXOGHVFULSWLRQDVVKRZQLQWKHIROORZLQJ
DOZD\VKDOIBSHULRGDUHJ aDUHJ
6HFWLRQ
,(((
6WG
6HFWLRQ
7DVNVDQGIXQFWLRQV
7DVNVDQGIXQFWLRQVSURYLGHWKHDELOLW\WRH[HFXWHFRPPRQSURFHGXUHVIURPVHYHUDOGLIIHUHQWSODFHVLQDGHVFULSWLRQ
7KH\DOVRSURYLGHDPHDQVRIEUHDNLQJXSODUJHSURFHGXUHVLQWRVPDOOHURQHVWRPDNHLWHDVLHUWRUHDGDQGGHEXJWKH
VRXUFHGHVFULSWLRQV7KLVVHFWLRQGLVFXVVHVWKHGLIIHUHQFHVEHWZHHQWDVNVDQGIXQFWLRQVGHVFULEHVKRZWRGHÀQHDQG
LQYRNHWDVNVDQGIXQFWLRQVDQGSUHVHQWVH[DPSOHVRIHDFK
'LVWLQFWLRQVEHWZHHQWDVNVDQGIXQFWLRQV
7KHIROORZLQJUXOHVGLVWLQJXLVKWDVNVIURPIXQFWLRQV
³ $IXQFWLRQVKDOOH[HFXWHLQRQHVLPXODWLRQWLPHXQLWDWDVNFDQFRQWDLQWLPHFRQWUROOLQJVWDWHPHQWV
³ $IXQFWLRQFDQQRWHQDEOHDWDVNDWDVNFDQHQDEOHRWKHUWDVNVDQGIXQFWLRQV
³ $IXQFWLRQVKDOOKDYHDWOHDVWRQHLQSXWW\SHDUJXPHQWDQGVKDOOQRWKDYHDQRXWSXWRULQRXWW\SHDUJXPHQWD
WDVNFDQKDYH]HURRUPRUHDUJXPHQWVRIDQ\W\SH
³ $IXQFWLRQVKDOOUHWXUQDVLQJOHYDOXHDWDVNVKDOOQRWUHWXUQDYDOXH
7KHSXUSRVHRIDIXQFWLRQLVWRUHVSRQGWRDQLQSXWYDOXHE\UHWXUQLQJDVLQJOHYDOXH$WDVNFDQVXSSRUWPXOWLSOHJRDOV
DQGFDQFDOFXODWHPXOWLSOHUHVXOWYDOXHV+RZHYHURQO\WKH RXWSXWRU LQRXWW\SHDUJXPHQWVSDVVUHVXOWYDOXHVEDFN
IURPWKHLQYRFDWLRQRIDWDVN$IXQFWLRQLVXVHGDVDQRSHUDQGLQDQH[SUHVVLRQWKHYDOXHRIWKDWRSHUDQGLVWKHYDOXH
UHWXUQHGE\WKHIXQFWLRQ
([DPSOH
(LWKHUDWDVNRUDIXQFWLRQFDQEHGHÀQHGWRVZLWFKE\WHVLQDELWZRUG7KHWDVNZRXOGUHWXUQWKHVZLWFKHGZRUGLQ
DQRXWSXWDUJXPHQWVRWKHVRXUFHFRGHWRHQDEOHDWDVNFDOOHGVZLWFKBE\WHVFRXOGORRNOLNHWKHIROORZLQJH[DP
SOH
VZLWFKBE\WHVROGBZRUGQHZBZRUG
7KHWDVN VZLWFKBE\WHVZRXOGWDNHWKHE\WHVLQ ROGBZRUGUHYHUVHWKHLURUGHUDQGSODFHWKHUHYHUVHGE\WHVLQ
QHZBZRUG
$ZRUGVZLWFKLQJIXQFWLRQZRXOGUHWXUQWKHVZLWFKHGZRUGDVWKHUHWXUQYDOXHRIWKHIXQFWLRQ7KXVWKHIXQFWLRQFDOO
IRUWKHIXQFWLRQVZLWFKBE\WHVFRXOGORRNOLNHWKHIROORZLQJH[DPSOH
QHZBZRUG VZLWFKBE\WHVROGBZRUG
7DVNVDQGWDVNHQDEOLQJ
$WDVNVKDOOEHHQDEOHGIURPDVWDWHPHQWWKDWGHÀQHVWKHDUJXPHQWYDOXHVWREHSDVVHGWRWKHWDVNDQGWKHUHJLVWHUV
WKDWUHFHLYHWKHUHVXOWV&RQWUROVKDOOEHSDVVHGEDFNWRWKHHQDEOLQJSURFHVVDIWHUWKHWDVNKDVFRPSOHWHG7KXVLID
WDVNKDVWLPLQJFRQWUROVLQVLGHLWWKHQWKHWLPHRIHQDEOLQJDWDVNFDQEHGLIIHUHQWIURPWKHWLPHDWZKLFKWKHFRQWURO
LVUHWXUQHG$WDVNFDQHQDEOHRWKHUWDVNVZKLFKLQWXUQFDQHQDEOHVWLOORWKHUWDVNV³ZLWKQROLPLWRQWKHQXPEHURI
WDVNVHQDEOHG5HJDUGOHVVRIKRZPDQ\WDVNVKDYHEHHQHQDEOHGFRQWUROVKDOOQRWUHWXUQXQWLODOOHQDEOHGWDVNVKDYH
FRPSOHWHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
'HÀQLQJDWDVN
7KHV\QWD[IRUGHÀQLQJWDVNVLVJLYHQLQ6\QWD[
WDVNBGHFODUDWLRQ WDVNWDVNBLGHQWLILHU
^WDVNBLWHPBGHFODUDWLRQ`
VWDWHPHQWBRUBQXOO
HQGWDVN
WDVNBLWHPBGHFODUDWLRQ EORFNBLWHPBGHFODUDWLRQ
_LQSXWBGHFODUDWLRQ
_RXWSXWBGHFODUDWLRQ
_LQRXWBGHFODUDWLRQ
EORFNBLWHPBGHFODUDWLRQ SDUDPHWHUBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
_LQWHJHUBGHFODUDWLRQ
_UHDOBGHFODUDWLRQ
_WLPHBGHFODUDWLRQ
_UHDOWLPHBGHFODUDWLRQ
_HYHQWBGHFODUDWLRQ
6\QWD[³6\QWD[IRUWDVNGHFODUDWLRQ
7KHWDVNGHFODUDWLRQVKDOOEHJLQZLWKWKHNH\ZRUGWDVNIROORZHGE\DQDPHIRUWKHWDVNDQGDVHPLFRORQDQGHQGLQJ
ZLWKWKHNH\ZRUGHQGWDVN7DVNLWHPGHFODUDWLRQVFDQVSHFLI\WKHIROORZLQJ
³
³
³
³
,QSXWDUJXPHQWV
2XWSXWDUJXPHQWV
,QRXWDUJXPHQWV
$OOGDWDW\SHVWKDWFDQEHGHFODUHGLQDSURFHGXUDOEORFN
7KHVHGHFODUDWLRQVKDYHWKHVDPHV\QWD[DVWKHFRUUHVSRQGLQJGHFODUDWLRQVLQDPRGXOHGHÀQLWLRQVHH6HFWLRQ
7KHWDVNGHFODUDWLRQVKDOOQRWGHFODUHDQHWGDWDW\SH7KHERG\RIWKHWDVNVKDOOFRQWDLQ]HURRUPRUHEHKDYLRUDOVWDWH
PHQWVVHH6HFWLRQ
7DVNHQDEOLQJDQGDUJXPHQWSDVVLQJ
7KHWDVNHQDEOLQJVWDWHPHQWVKDOOSDVVDUJXPHQWVDVDFRPPDVHSDUDWHGOLVWRIH[SUHVVLRQVHQFORVHGLQSDUHQWKHVHV
7KHIRUPDOV\QWD[RIWKHWDVNHQDEOLQJVWDWHPHQWLVJLYHQLQ6\QWD[
WDVNBHQDEOH WDVNBLGHQWLILHU>H[SUHVVLRQ^H[SUHVVLRQ`@
6\QWD[³6\QWD[RIWKHWDVNHQDEOLQJVWDWHPHQW
7KHOLVWRIDUJXPHQWVIRUDWDVNHQDEOLQJVWDWHPHQWVKDOOEHRSWLRQDO,IWKHOLVWRIDUJXPHQWVLVSURYLGHGWKHOLVWVKDOO
EHDQRUGHUHGOLVWRIH[SUHVVLRQVWKDWKDVWRPDWFKWKHRUGHURIWKHOLVWRIDUJXPHQWVLQWKHWDVNGHÀQLWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
,IDQDUJXPHQWLQWKHWDVNLVGHFODUHGDVDQLQSXWWKHQWKHFRUUHVSRQGLQJH[SUHVVLRQFDQEHDQ\H[SUHVVLRQ7KHRUGHU
RIHYDOXDWLRQRIWKHH[SUHVVLRQVLQWKHDUJXPHQWOLVWLVXQGHÀQHG,IWKHDUJXPHQWLVGHFODUHGDVDQRXWSXWRUDQLQRXW
WKHQWKHH[SUHVVLRQVKDOOEHUHVWULFWHGWRDQH[SUHVVLRQWKDWLVYDOLGRQWKHOHIWKDQGVLGHRIDSURFHGXUDODVVLJQPHQW
VHH7KHIROORZLQJLWHPVVDWLVI\WKLVUHTXLUHPHQW
³
³
³
³
³
UHJLQWHJHUUHDOUHDOWLPHDQGWLPHUHJLVWHUV
0HPRU\UHIHUHQFHV
&RQFDWHQDWLRQVRIUHJLQWHJHUUHDOUHDOWLPHDQGWLPHUHJLVWHUV
&RQFDWHQDWLRQVRIPHPRU\UHIHUHQFHV
%LWVHOHFWVDQGSDUWVHOHFWVRIUHJLQWHJHUDQGWLPHUHJLVWHUV
7KHH[HFXWLRQRIWKHWDVNHQDEOLQJVWDWHPHQWVKDOOSDVVLQSXWYDOXHVIURPWKHUHJLVWHUVOLVWHGLQWKHHQDEOLQJVWDWHPHQW
WRWKHDUJXPHQWVVSHFLÀHGZLWKLQWKHWDVN([HFXWLRQRIWKHUHWXUQIURPWKHWDVNVKDOOSDVVYDOXHVIURPWKHWDVNRXW
SXWDQGLQRXWW\SHDUJXPHQWVWRWKHFRUUHVSRQGLQJUHJLVWHUVLQWKHWDVNHQDEOLQJVWDWHPHQW$OODUJXPHQWVWRWKHWDVN
VKDOOEHSDVVHGE\YDOXHUDWKHUWKDQE\UHIHUHQFHWKDWLVDSRLQWHUWRWKHYDOXH
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHEDVLFVWUXFWXUHRIDWDVNGHÀQLWLRQZLWKÀYHDUJXPHQWV
WDVNP\BWDVN
LQSXWDE
LQRXWF
RXWSXWGH
EHJLQ
VWDWHPHQWVWKDWSHUIRUPWKHZRUNRIWKHWDVN
F IRRWKHDVVLJQPHQWVWKDWLQLWLDOL]HUHVXOWUHJLVWHUV
G IRR
H IRR
HQG
HQGWDVN
7KHIROORZLQJVWDWHPHQWHQDEOHVWKHWDVN
P\BWDVNYZ[\]
7KHWDVNHQDEOLQJDUJXPHQWVYZ[\DQG]FRUUHVSRQGWRWKHDUJXPHQWVDEFGDQGHGHÀQHGE\
WKHWDVN$WWDVNHQDEOLQJWLPHWKHLQSXWDQGLQRXWW\SHDUJXPHQWVDEDQGFUHFHLYHWKHYDOXHVSDVVHGLQY
ZDQG[7KXVH[HFXWLRQRIWKHWDVNHQDEOLQJFDOOHIIHFWLYHO\FDXVHVWKHIROORZLQJDVVLJQPHQWV
D Y
E Z
F [
$VSDUWRIWKHSURFHVVLQJRIWKHWDVNWKHWDVNGHÀQLWLRQIRUP\BWDVNVKDOOSODFHWKHFRPSXWHGUHVXOWYDOXHVLQWRF
GDQGH:KHQWKHWDVNFRPSOHWHVWKHIROORZLQJDVVLJQPHQWVWRUHWXUQWKHFRPSXWHGYDOXHVWRWKHFDOOLQJSURFHVVDUH
SHUIRUPHG
[ F
\ G
] H
([DPSOH³7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHXVHRIWDVNVE\GHVFULELQJDWUDIÀFOLJKWVHTXHQFHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHWUDIILFBOLJKWV
UHJFORFNUHGDPEHUJUHHQ
SDUDPHWHU RQ RII UHGBWLFV DPEHUBWLFV JUHHQBWLFV LQLWLDOL]HFRORUV
LQLWLDOUHG RII
LQLWLDODPEHU RII
LQLWLDOJUHHQ RII
DOZD\VEHJLQ
UHG RQ
OLJKWUHGUHGBWLFV
JUHHQ RQ
OLJKWJUHHQJUHHQBWLFV
DPEHU RQ
OLJKWDPEHUDPEHUBWLFV
HQG
VHTXHQFHWRFRQWUROWKHOLJKWV
WXUQUHGOLJKWRQ
DQGZDLW
WXUQJUHHQOLJKWRQ
DQGZDLW
WXUQDPEHUOLJKWRQ
DQGZDLW
WDVNWRZDLWIRU·WLFV·SRVLWLYHHGJHFORFNV
EHIRUHWXUQLQJ·FRORU·OLJKWRII
WDVNOLJKW
RXWSXWFRORU
LQSXW>@WLFV
EHJLQ
UHSHDWWLFV#SRVHGJHFORFN
FRORU RII
WXUQOLJKWRII
HQG
HQGWDVN
DOZD\VEHJLQ
FORFN FORFN HQG
HQGPRGXOHWUDIILFBOLJKWV
ZDYHIRUPIRUWKHFORFN
7DVNPHPRU\XVDJHDQGFRQFXUUHQWDFWLYDWLRQ
$WDVNPD\EHHQDEOHGPRUHWKDQRQFHFRQFXUUHQWO\$WDVNRUIXQFWLRQPD\FRQWDLQWKHGHÀQLWLRQRIORFDOUHJLVWHUV
RIW\SHUHJLQWHJHUWLPHUHDOUHDOWLPHRUHYHQW7KHVHUHJLVWHUVVKDOOEHVWDWLFLQWKDWWKHUHVKDOOEHDVLQJOHUHJLV
WHUFRUUHVSRQGLQJWRHDFKGHFODUHGORFDOUHJLVWHUUHJDUGOHVVRIWKHQXPEHURIFRQFXUUHQWDFWLYDWLRQVRIWKHWDVN7KXV
LIDWDVNLVHQDEOHGPRUHWKDQRQFHFRQFXUUHQWO\DOOLQVWDQFHVRIWKHWDVNZRXOGVKDUHWKHVDPHORFDOUHJLVWHUV
%HFDXVHWDVNVFDQKDYHQRQ]HURWLPHGXUDWLRQVHDFKDFWLYHWDVNKDVDSRLQWRIFRQWURO7KLVSRLQWRIFRQWUROLVXQLTXH
WRHDFKDFWLYHWDVNLQVWDQFH7KXVLWLVSRVVLEOHWRZULWHDUHFXUVLYHWDVNRUIXQFWLRQEXWDOOORFDOGDWDVKDOOUHPDLQ
VWDWLF
)XQFWLRQVDQGIXQFWLRQFDOOLQJ
7KHSXUSRVHRIDIXQFWLRQLVWRUHWXUQDYDOXHWKDWLVWREHXVHGLQDQH[SUHVVLRQ7KHUHVWRIWKLVFODXVHH[SODLQVKRZ
WRGHÀQHDQGXVHIXQFWLRQV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
'HÀQLQJDIXQFWLRQ
7KHV\QWD[IRUGHÀQLQJDIXQFWLRQLVJLYHQLQ6\QWD[
IXQFWLRQBGHFODUDWLRQ IXQFWLRQ>UDQJHBRUBW\SH@IXQFWLRQBLGHQWLILHU
IXQFWLRQBLWHPBGHFODUDWLRQ^IXQFWLRQBLWHPBGHFODUDWLRQ`
VWDWHPHQW
HQGIXQFWLRQ
UDQJHBRUBW\SH UDQJH_LQWHJHU_UHDO_UHDOWLPH_WLPH
IXQFWLRQBLWHPBGHFODUDWLRQ LQSXWBGHFODUDWLRQ
_EORFNBLWHPBGHFODUDWLRQ
EORFNBLWHPBGHFODUDWLRQ _SDUDPHWHUBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
_LQWHJHUBGHFODUDWLRQ
_UHDOBGHFODUDWLRQ
_WLPHBGHFODUDWLRQ
_UHDOWLPHBGHFODUDWLRQ
_HYHQWBGHFODUDWLRQ
6\QWD[³6\QWD[IRUIXQFWLRQGHFODUDWLRQ
$IXQFWLRQGHFODUDWLRQVKDOOEHJLQZLWKWKHNH\ZRUGIXQFWLRQIROORZHGE\WKHUDQJHRUW\SHRIWKHUHWXUQYDOXHIURP
WKHIXQFWLRQIROORZHGE\WKHQDPHRIWKHIXQFWLRQDQGDVHPLFRORQDQGVKDOOHQGZLWKWKHNH\ZRUGHQGIXQFWLRQ7KH
XVHRIUDQJHRUW\SHVKDOOEHRSWLRQDO$IXQFWLRQVSHFLÀHGZLWKRXWDUDQJHRUDW\SHGHIDXOWVWRDRQHELWUHJLVWHUIRU
WKHUHWXUQYDOXH,IXVHGUDQJHBRUBW\SHVKDOOVSHFLI\WKDWWKHUHWXUQYDOXHRIWKHIXQFWLRQLVDUHDODQLQWHJHUDWLPH
DUHDOWLPHRUDYDOXHZLWKDUDQJHRI>QP@ELWV$IXQFWLRQVKDOOKDYHDWOHDVWRQHLQSXWGHFODUHG
([DPSOH
7KHIROORZLQJH[DPSOHGHÀQHVDIXQFWLRQFDOOHGJHWE\WHXVLQJDUDQJHVSHFLÀFDWLRQ
IXQFWLRQ>@JHWE\WH
LQSXW>@DGGUHVV
EHJLQ
FRGHWRH[WUDFWORZRUGHUE\WHIURPDGGUHVVHGZRUG
JHWE\WH UHVXOWBH[SUHVVLRQ
HQG
HQGIXQFWLRQ
5HWXUQLQJDYDOXHIURPDIXQFWLRQ
7KHIXQFWLRQGHÀQLWLRQVKDOOLPSOLFLWO\GHFODUHDUHJLVWHULQWHUQDOWRWKHIXQFWLRQZLWKWKHVDPHQDPHDVWKHIXQFWLRQ
7KLVUHJLVWHUHLWKHUGHIDXOWVWRDELWUHJLVWHURULVWKHVDPHW\SHDVWKHW\SHVSHFLÀHGLQWKHIXQFWLRQGHFODUDWLRQ7KH
IXQFWLRQGHÀQLWLRQLQLWLDOL]HVWKHUHWXUQYDOXHIURPWKHIXQFWLRQE\DVVLJQLQJWKHIXQFWLRQUHVXOWWRWKHLQWHUQDOUHJLVWHU
ZLWKWKHVDPHQDPHDVWKHIXQFWLRQ7KHIROORZLQJOLQHIURPWKHH[DPSOHLQLOOXVWUDWHVWKLVFRQFHSW
JHWE\WH UHVXOWBH[SUHVVLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
&DOOLQJDIXQFWLRQ
$IXQFWLRQFDOOLVDQRSHUDQGZLWKLQDQH[SUHVVLRQ7KHIXQFWLRQFDOOKDVWKHV\QWD[JLYHQLQ6\QWD[
IXQFWLRQBFDOO IXQFWLRQBLGHQWLILHUH[SUHVVLRQ^H[SUHVVLRQ`
6\QWD[³6\QWD[IRUIXQFWLRQFDOO
7KHRUGHURIHYDOXDWLRQRIWKHDUJXPHQWVWRDIXQFWLRQFDOOLVXQGHÀQHG
([DPSOH
7KHIROORZLQJH[DPSOHFUHDWHVDZRUGE\FRQFDWHQDWLQJWKHUHVXOWVRIWZRFDOOVWRWKHIXQFWLRQJHWE\WHGHÀQHGLQ
ZRUG FRQWURO"^JHWE\WHPVE\WHJHWE\WHOVE\WH`
)XQFWLRQUXOHV
)XQFWLRQVDUHPRUHOLPLWHGWKDQWDVNV7KHIROORZLQJÀYHUXOHVJRYHUQWKHLUXVDJH
D
$ IXQFWLRQ GHÀQLWLRQ VKDOO QRW FRQWDLQ DQ\ WLPHFRQWUROOHG VWDWHPHQWV³WKDW LV DQ\ VWDWHPHQWV LQWURGXFHG
ZLWK#RUZDLW
E
)XQFWLRQVVKDOOQRWHQDEOHWDVNV
F
$IXQFWLRQGHÀQLWLRQVKDOOFRQWDLQDWOHDVWRQHLQSXWDUJXPHQW
G
$IXQFWLRQGHÀQLWLRQVKDOOQRWKDYHDQ\DUJXPHQWGHFODUHGDVRXWSXWRULQRXW
H
$IXQFWLRQGHÀQLWLRQVKDOOLQFOXGHDQDVVLJQPHQWRIWKHIXQFWLRQUHVXOWYDOXHWRWKHLQWHUQDOUHJLVWHUWKDWKDV
WKHVDPHQDPHDVWKHIXQFWLRQQDPH
([DPSOH
7KLVH[DPSOHGHÀQHVDIXQFWLRQFDOOHGIDFWRULDOWKDWUHWXUQVDELWUHJLVWHUYDOXH7KHIDFWRULDOIXQFWLRQLV
FDOOHGLWHUDWLYHO\DQGWKHUHVXOWVDUHSULQWHG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PRGXOHWU\IDFW
GHILQHWKHIXQFWLRQ
IXQFWLRQ>@IDFWRULDO
LQSXW>@RSHUDQG
UHJ>@L
EHJLQ
IDFWRULDO IRUL L RSHUDQGL L
IDFWRULDO LIDFWRULDO
HQG
HQGIXQFWLRQ
WHVWWKHIXQFWLRQ
LQWHJHUUHVXOW
LQWHJHUQ
LQLWLDOEHJLQ
IRUQ Q Q QEHJLQ
UHVXOW IDFWRULDOQ
GLVSOD\GIDFWRULDO GQUHVXOW
HQG
HQG
HQGPRGXOHWU\IDFW
7KHVLPXODWLRQUHVXOWVDUHDVIROORZV
IDFWRULDO
IDFWRULDO
IDFWRULDO
IDFWRULDO
IDFWRULDO
IDFWRULDO
IDFWRULDO
IDFWRULDO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
'LVDEOLQJRIQDPHGEORFNVDQGWDVNV
7KH GLVDEOHVWDWHPHQWSURYLGHVWKHDELOLW\WRWHUPLQDWHWKHDFWLYLW\DVVRFLDWHGZLWKFRQFXUUHQWO\DFWLYHSURFHGXUHV
ZKLOHPDLQWDLQLQJWKHVWUXFWXUHGQDWXUHRI9HULORJ+'/SURFHGXUDOGHVFULSWLRQV7KHGLVDEOHVWDWHPHQWJLYHVDPHFK
DQLVPIRUWHUPLQDWLQJDWDVNEHIRUHLWH[HFXWHVDOOLWVVWDWHPHQWVEUHDNLQJIURPDORRSLQJVWDWHPHQWRUVNLSSLQJVWDWH
PHQWVLQRUGHUWRFRQWLQXHZLWKDQRWKHULWHUDWLRQRIDORRSLQJVWDWHPHQW,WLVXVHIXOIRUKDQGOLQJH[FHSWLRQFRQGLWLRQV
VXFKDVKDUGZDUHLQWHUUXSWVDQGJOREDOUHVHWV
7KHGLVDEOHVWDWHPHQWKDVWKHV\QWD[IRUPVKRZQLQ6\QWD[
GLVDEOHBVWDWHPHQW
GLVDEOHWDVNBLGHQWLILHU
_GLVDEOHEORFNBLGHQWLILHU
6\QWD[³6\QWD[RIGLVDEOHVWDWHPHQW
(LWKHUIRUPRIGLVDEOHVWDWHPHQWVKDOOWHUPLQDWHWKHDFWLYLW\RIDWDVNRUDQDPHGEORFN([HFXWLRQVKDOOUHVXPHDWWKH
VWDWHPHQWIROORZLQJWKHEORFNRUIROORZLQJWKHWDVNHQDEOLQJVWDWHPHQW$OODFWLYLWLHVHQDEOHGZLWKLQWKHQDPHGEORFN
RUWDVNVKDOOEHWHUPLQDWHGDVZHOO,IWDVNHQDEOHVWDWHPHQWVDUHQHVWHG³WKDWLVRQHWDVNHQDEOHVDQRWKHUDQGWKDW
RQHHQDEOHV\HWDQRWKHU³WKHQGLVDEOLQJDWDVNZLWKLQWKHFKDLQVKDOOGLVDEOHDOOWDVNVGRZQZDUGRQWKHFKDLQ,ID
WDVNLVHQDEOHGPRUHWKDQRQFHWKHQGLVDEOLQJVXFKDWDVNVKDOOGLVDEOHDOODFWLYDWLRQVRIWKHWDVN
7KHUHVXOWVRIWKHIROORZLQJDFWLYLWLHVWKDWPD\EHLQLWLDWHGE\DWDVNDUHQRWVSHFLÀHGLIWKHWDVNLVGLVDEOHG
³ 5HVXOWVRIRXWSXWDQGLQRXWDUJXPHQWV
³ 6FKHGXOHGEXWQRWH[HFXWHGQRQEORFNLQJDVVLJQPHQWV
³ 3URFHGXUDOFRQWLQXRXVDVVLJQPHQWVDVVLJQDQGIRUFHVWDWHPHQWV
7KHGLVDEOHVWDWHPHQWFDQEHXVHGZLWKLQEORFNVDQGWDVNVWRGLVDEOHWKHSDUWLFXODUEORFNRUWDVNFRQWDLQLQJWKHGLV
DEOHVWDWHPHQW7KHGLVDEOHVWDWHPHQWFDQQRWEHXVHGWRGLVDEOHIXQFWLRQV
([DPSOHV
([DPSOH³7KLVH[DPSOHLOOXVWUDWHVKRZDEORFNGLVDEOHVLWVHOI
EHJLQEORFNBQDPH
UHJD UHJE
GLVDEOHEORFNBQDPH
UHJF UHJDWKLVDVVLJQPHQWZLOOQHYHUH[HFXWH
HQG
([DPSOH³7KLVH[DPSOHVKRZVWKHGLVDEOHVWDWHPHQWEHLQJXVHGZLWKLQDQDPHGEORFNLQDPDQQHUVLPLODUWRDIRU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
ZDUGJRWR7KHQH[WVWDWHPHQWH[HFXWHGDIWHUWKHGLVDEOHVWDWHPHQWLVWKHRQHIROORZLQJWKHQDPHGEORFN
EHJLQEORFNBQDPH
LID GLVDEOHEORFNBQDPH
HQG
HQGRIQDPHGEORFN
FRQWLQXHZLWKFRGHIROORZLQJQDPHGEORFN
([DPSOH³7KLVH[DPSOHVKRZVWKHGLVDEOHVWDWHPHQWEHLQJXVHGDVDQHDUO\UHWXUQIURPDWDVN+RZHYHUDWDVNGLV
DEOLQJLWVHOIXVLQJDGLVDEOHVWDWHPHQWLVQRWDVKRUWKDQGIRUWKHUHWXUQVWDWHPHQWIRXQGLQSURJUDPPLQJODQJXDJHV
WDVNSURFBD
EHJLQ
LID GLVDEOHSURFBDUHWXUQLIWUXH
HQG
HQGWDVN
([DPSOH³7KLVH[DPSOHVKRZVWKHGLVDEOHVWDWHPHQWEHLQJXVHGLQDQHTXLYDOHQWZD\WRWKHWZRVWDWHPHQWV FRQ
WLQXHDQGEUHDNLQWKH&SURJUDPPLQJODQJXDJH7KHH[DPSOHLOOXVWUDWHVFRQWUROFRGHWKDWZRXOGDOORZDQDPHGEORFN
WRH[HFXWHXQWLODORRSFRXQWHUUHDFKHV QLWHUDWLRQVRUXQWLOWKHYDULDEOH DLVVHWWRWKHYDOXHRI E7KHQDPHGEORFN
EUHDNFRQWDLQVWKHFRGHWKDWH[HFXWHVXQWLOD EDWZKLFKSRLQWWKHGLVDEOHEUHDNVWDWHPHQWWHUPLQDWHV
H[HFXWLRQRIWKDWEORFN7KHQDPHGEORFN FRQWLQXHFRQWDLQVWKHFRGHWKDWH[HFXWHVIRUHDFKLWHUDWLRQRIWKH IRU
ORRS(DFKWLPHWKLVFRGHH[HFXWHVWKHGLVDEOHFRQWLQXHVWDWHPHQWWKHFRQWLQXHEORFNWHUPLQDWHVDQGH[H
FXWLRQSDVVHVWRWKHQH[WLWHUDWLRQRIWKHIRUORRS)RUHDFKLWHUDWLRQRIWKHFRQWLQXHEORFNDVHWRIVWDWHPHQWVH[H
FXWHVLID $QRWKHUVHWRIVWDWHPHQWVH[HFXWHVLID E
EHJLQEUHDN
IRUL LQL LEHJLQFRQWLQXH
#FON
LID FRQWLQXHORRS
GLVDEOHFRQWLQXH
VWDWHPHQWV
VWDWHPHQWV
#FON
LID EEUHDNIURPORRS
GLVDEOHEUHDN
VWDWHPHQWV
VWDWHPHQWV
HQG
HQG
6HFWLRQ
,(((
6WG
([DPSOH³7KLVH[DPSOHVKRZVWKHGLVDEOHVWDWHPHQWEHLQJXVHGWRGLVDEOHFRQFXUUHQWO\DVHTXHQFHRIWLPLQJFRQ
WUROVDQGWKHWDVNDFWLRQZKHQWKHUHVHWHYHQWRFFXUV7KHH[DPSOHVKRZVDIRUNMRLQEORFNZLWKLQZKLFKLV
DQDPHGVHTXHQWLDOEORFNHYHQWBH[SUDQGDGLVDEOHVWDWHPHQWWKDWZDLWVIRURFFXUUHQFHRIWKHHYHQWUHVHW7KH
VHTXHQWLDOEORFNDQGWKHZDLWIRU UHVHWH[HFXWHLQSDUDOOHO7KH HYHQWBH[SUEORFNZDLWVIRURQHRFFXUUHQFHRI
HYHQWHYDQGWKUHHRFFXUUHQFHVRIHYHQWWULJ:KHQWKHVHIRXUHYHQWVKDYHKDSSHQHGSOXVDGHOD\RIGWLPHXQLWV
WKH WDVN DFWLRQ H[HFXWHV :KHQ WKH HYHQW UHVHW RFFXUV UHJDUGOHVV RI HYHQWV ZLWKLQ WKH VHTXHQWLDO EORFN WKH
IRUNMRLQEORFNWHUPLQDWHV³LQFOXGLQJWKHWDVNDFWLRQ
IRUN
EHJLQHYHQWBH[SU
#HY
UHSHDW#WULJ
GDFWLRQDUHJEUHJ
HQG
#UHVHWGLVDEOHHYHQWBH[SU
MRLQ
([DPSOH³7KHQH[WH[DPSOHLVDEHKDYLRUDOGHVFULSWLRQRIDUHWULJJHUDEOHPRQRVWDEOH7KHQDPHGHYHQW UHWULJ
UHVWDUWVWKHPRQRVWDEOHWLPHSHULRG,IUHWULJFRQWLQXHVWRRFFXUZLWKLQWLPHXQLWVWKHQTZLOOUHPDLQDW
DOZD\VEHJLQPRQRVWDEOH
T HQG
DOZD\V#UHWULJEHJLQ
GLVDEOHPRQRVWDEOH
T HQG
6HFWLRQ
,(((
6WG
6HFWLRQ
+LHUDUFKLFDOVWUXFWXUHV
7KH9HULORJ+'/VXSSRUWVDKLHUDUFKLFDOKDUGZDUHGHVFULSWLRQVWUXFWXUHE\DOORZLQJPRGXOHVWREHHPEHGGHGZLWKLQ
RWKHUPRGXOHV+LJKHUOHYHOPRGXOHVFUHDWHLQVWDQFHVRIORZHUOHYHOPRGXOHVDQGFRPPXQLFDWHZLWKWKHPWKURXJK
LQSXWRXWSXWDQGELGLUHFWLRQDOSRUWV7KHVHPRGXOHLQSXWRXWSXWSRUWVFDQEHVFDODURUYHFWRU
$V DQ H[DPSOH RI D PRGXOH KLHUDUFK\ FRQVLGHU D V\VWHP FRQVLVWLQJ RI SULQWHG FLUFXLW ERDUGV 3&%V7KH V\VWHP
ZRXOGEHUHSUHVHQWHGDVWKHWRSOHYHOPRGXOHDQGZRXOGFUHDWHLQVWDQFHVRIPRGXOHVWKDWUHSUHVHQWWKHERDUGV7KH
ERDUG PRGXOHV ZRXOG LQ WXUQ FUHDWH LQVWDQFHV RI PRGXOHV WKDW UHSUHVHQW ,&V DQG WKH ,&V FRXOG LQ WXUQ FUHDWH
LQVWDQFHVRIPRGXOHVVXFKDVÁLSÁRSVPX[·VDQGDOX·V
7RGHVFULEHDKLHUDUFK\RIPRGXOHVWKHXVHUSURYLGHVWH[WXDOGHÀQLWLRQVRIWKHYDULRXVPRGXOHV(DFKPRGXOHGHÀQL
WLRQVWDQGVDORQHWKHGHÀQLWLRQVDUHQRWQHVWHG6WDWHPHQWVZLWKLQWKHPRGXOHGHÀQLWLRQVFUHDWHLQVWDQFHVRIRWKHU
PRGXOHVWKXVGHVFULELQJWKHKLHUDUFK\
0RGXOHV
7KLVFODXVHJLYHVWKHIRUPDOV\QWD[IRUDPRGXOHGHÀQLWLRQDQGWKHQJLYHVWKHV\QWD[IRUPRGXOHLQVWDQWLDWLRQDORQJ
ZLWKDQH[DPSOHRIDPRGXOHGHÀQLWLRQDQGDPRGXOHLQVWDQWLDWLRQ
$PRGXOHGHÀQLWLRQVKDOOEHHQFORVHGEHWZHHQWKHNH\ZRUGV PRGXOHDQG HQGPRGXOH7KHLGHQWLÀHUIROORZLQJWKH
NH\ZRUGPRGXOHVKDOOEHWKHQDPHRIWKHPRGXOHEHLQJGHÀQHG7KHRSWLRQDOOLVWRISRUWVVKDOOVSHFLI\DQRUGHUHGOLVW
RIWKHSRUWVRIWKHPRGXOH7KHRUGHUXVHGFDQEHVLJQLÀFDQWZKHQLQVWDQWLDWLQJWKHPRGXOHVHH7KHLGHQWLÀ
HUVLQWKLVOLVWVKDOOEHGHFODUHGLQLQSXWRXWSXWDQGLQRXWVWDWHPHQWVZLWKLQWKHPRGXOHGHÀQLWLRQ7KHPRGXOHLWHPV
GHÀQHZKDWFRQVWLWXWHVDPRGXOHDQGWKH\LQFOXGHPDQ\GLIIHUHQWW\SHVRIGHFODUDWLRQVDQGGHÀQLWLRQVPDQ\RIWKHP
KDYHDOUHDG\EHHQLQWURGXFHG
7KHNH\ZRUG PDFURPRGXOHFDQEHXVHGLQWHUFKDQJHDEO\ZLWKWKHNH\ZRUG PRGXOHWRGHÀQHDPRGXOH$QLPSOH
PHQWDWLRQFDQFKRRVHWRWUHDWPRGXOHGHÀQLWLRQVEHJLQQLQJZLWKPDFURPRGXOHNH\ZRUGGLIIHUHQWO\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHBGHFODUDWLRQ PRGXOHBNH\ZRUGPRGXOHBLGHQWLILHU>OLVWBRIBSRUWV@^PRGXOHBLWHP`
HQGPRGXOH
PRGXOHBNH\ZRUG PRGXOH_PDFURPRGXOH
OLVWBRIBSRUWV SRUW^SRUW`
SRUW >SRUWBH[SUHVVLRQ@
_SRUWBLGHQWLILHU>SRUWBH[SUHVVLRQ@
SRUWBH[SUHVVLRQ SRUWBUHIHUHQFH
_^SRUWBUHIHUHQFH^SRUWBUHIHUHQFH``
SRUWBUHIHUHQFH SRUWBLGHQWLILHU
_SRUWBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
_SRUWBLGHQWLILHU>PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
PRGXOHBLWHP PRGXOHBLWHPBGHFODUDWLRQ
_SDUDPHWHUBRYHUULGH
_FRQWLQXRXVBDVVLJQ
_JDWHBLQVWDQWLDWLRQ
_XGSBLQVWDQWLDWLRQ
_PRGXOHBLQVWDQWLDWLRQ
_VSHFLI\BEORFN
_LQLWLDOBFRQVWUXFW
_DOZD\VBFRQVWUXFW
PRGXOHBLWHPBGHFODUDWLRQ
SDUDPHWHUBGHFODUDWLRQ
_LQSXWBGHFODUDWLRQ
_RXWSXWBGHFODUDWLRQ
_LQRXWBGHFODUDWLRQ
_QHWBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
_LQWHJHUBGHFODUDWLRQ
_UHDOBGHFODUDWLRQ
_WLPHBGHFODUDWLRQ
_UHDOWLPHBGHFODUDWLRQ
_HYHQWBGHFODUDWLRQ
_WDVNBGHFODUDWLRQ
_IXQFWLRQBGHFODUDWLRQ
6\QWD[³6\QWD[IRUPRGXOH
6HHIRUWKHGHÀQLWLRQVRISRUWV
7RSOHYHOPRGXOHV
7RSOHYHOPRGXOHVDUHPRGXOHVWKDWDUHLQFOXGHGLQWKHVRXUFHWH[WEXWDUHQRWLQVWDQWLDWHGDVGHVFULEHGLQ
0RGXOHLQVWDQWLDWLRQ
,QVWDQWLDWLRQDOORZVRQHPRGXOHWRLQFRUSRUDWHDFRS\RIDQRWKHUPRGXOHLQWRLWVHOI0RGXOHGHÀQLWLRQVGRQRWQHVW
7KDWLVRQHPRGXOHGHÀQLWLRQVKDOOQRWFRQWDLQWKHWH[WRIDQRWKHUPRGXOHGHÀQLWLRQZLWKLQLWVPRGXOHHQGPRGXOH
NH\ZRUGSDLU$PRGXOHGHÀQLWLRQQHVWVDQRWKHUPRGXOHE\ LQVWDQWLDWLQJLW7KH PRGXOHLQVWDQWLDWLRQVWDWHPHQWFUH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
DWHVRQHRUPRUHQDPHGLQVWDQFHVRIDGHÀQHGPRGXOH
)RUH[DPSOHDFRXQWHUPRGXOHPLJKWLQVWDQWLDWHD'ÁLSÁRSPRGXOHWRFUHDWHPXOWLSOHLQVWDQFHVRIWKHÁLSÁRS
6\QWD[JLYHVWKHV\QWD[IRUVSHFLI\LQJLQVWDQWLDWLRQVRIPRGXOHV
PRGXOHBLQVWDQWLDWLRQ PRGXOHBLGHQWLILHU>SDUDPHWHUBYDOXHBDVVLJQPHQW@PRGXOHBLQVWDQFH^
PRGXOHBLQVWDQFH`
SDUDPHWHUBYDOXHBDVVLJQPHQW H[SUHVVLRQ^H[SUHVVLRQ`
PRGXOHBLQVWDQFH QDPHBRIBLQVWDQFH>OLVWBRIBPRGXOHBFRQQHFWLRQV@
QDPHBRIBLQVWDQFH PRGXOHBLQVWDQFHBLGHQWLILHU>UDQJH@
OLVWBRIBPRGXOHBFRQQHFWLRQV RUGHUHGBSRUWBFRQQHFWLRQ^RUGHUHGBSRUWBFRQQHFWLRQ`
_QDPHGBSRUWBFRQQHFWLRQ^QDPHGBSRUWBFRQQHFWLRQ`
RUGHUHGBSRUWBFRQQHFWLRQ >H[SUHVVLRQ@
QDPHGBSRUWBFRQQHFWLRQ SRUWBLGHQWLILHU>H[SUHVVLRQ@
6\QWD[³6\QWD[IRUPRGXOHLQVWDQWLDWLRQ
7KHLQVWDQWLDWLRQVRIPRGXOHVFDQFRQWDLQDUDQJHVSHFLÀFDWLRQ7KLVDOORZVDQDUUD\RILQVWDQFHVWREHFUHDWHG7KH
DUUD\RILQVWDQFHVDUHGHVFULEHGLQ7KHV\QWD[DQGVHPDQWLFVRIDUUD\VRILQVWDQFHVGHÀQHGIRUJDWHVDQGSULPL
WLYHVDSSO\IRUPRGXOHVDVZHOO
2QHRUPRUHPRGXOHLQVWDQFHVLGHQWLFDOFRSLHVRIDPRGXOHFDQEHVSHFLÀHGLQDVLQJOHPRGXOHLQVWDQWLDWLRQVWDWH
PHQW
7KHOLVWRIPRGXOHFRQQHFWLRQVVKDOOEHSURYLGHGRQO\IRUPRGXOHVGHÀQHGZLWKSRUWV7KHSDUHQWKHVHVKRZHYHUDUH
DOZD\VUHTXLUHG:KHQDOLVWRIPRGXOHFRQQHFWLRQVLVJLYHQWKHÀUVWHOHPHQWLQWKHOLVWVKDOOFRQQHFWWRWKHÀUVWSRUW
WKHVHFRQGWRWKHVHFRQGSRUWDQGVRRQ6HHIRUDPRUHGHWDLOHGGLVFXVVLRQRISRUWVDQGSRUWFRQQHFWLRQUXOHV
$FRQQHFWLRQFDQEHDVLPSOHUHIHUHQFHWRDUHJLVWHURUDQHWLGHQWLÀHUDQH[SUHVVLRQRUDEODQN$QH[SUHVVLRQFDQEH
XVHGIRUVXSSO\LQJDYDOXHWRDPRGXOHLQSXWSRUW$EODQNPRGXOHFRQQHFWLRQVKDOOUHSUHVHQWWKHVLWXDWLRQZKHUHWKH
SRUWLVQRWWREHFRQQHFWHG
:KHQFRQQHFWLQJSRUWVE\QDPHDQXQFRQQHFWHGSRUWFDQEHLQGLFDWHGHLWKHUE\RPLWWLQJLWLQWKHSRUWOLVWRUE\SUR
YLGLQJQRH[SUHVVLRQLQWKHSDUHQWKHVHV>LHSRUWBQDPH@
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHLOOXVWUDWHVDFLUFXLWWKHORZHUOHYHOPRGXOHEHLQJGULYHQE\DVLPSOHZDYHIRUP
GHVFULSWLRQWKHKLJKHUOHYHOPRGXOHZKHUHWKHFLUFXLWPRGXOHLVLQVWDQWLDWHGLQVLGHWKHZDYHIRUPPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
/RZHUOHYHOPRGXOH
PRGXOHGHVFULSWLRQRIDQDQGIOLSIORSFLUFXLW
PRGXOHIIQDQGTTEDUSUHVHWFOHDU
RXWSXWTTEDU
GHFODUHVFLUFXLWRXWSXWQHWV
LQSXWSUHVHWFOHDU
GHFODUHVFLUFXLWLQSXWQHWV
GHFODUDWLRQRIWZRQDQGJDWHVDQGWKHLULQWHUFRQQHFWLRQV
QDQGJTTEDUSUHVHW
JTEDUTFOHDU
HQGPRGXOH
+LJKHUOHYHOPRGXOH
DZDYHIRUPGHVFULSWLRQIRUWKHQDQGIOLSIORS
PRGXOHIIQDQGBZDYH
ZLUHRXWRXW
RXWSXWVIURPWKHFLUFXLW
UHJLQLQ
YDULDEOHVWRGULYHWKHFLUFXLW
SDUDPHWHUG LQVWDQWLDWHWKHFLUFXLWIIQDQGQDPHLW´IIµ
DQGVSHFLI\WKH,2SRUWLQWHUFRQQHFWLRQV
IIQDQGIIRXWRXWLQLQ
GHILQHWKHZDYHIRUPWRVWLPXODWHWKHFLUFXLW
LQLWLDOEHJLQ
GLQ LQ GLQ GLQ GLQ HQG
HQGPRGXOH
([DPSOH³7KHIROORZLQJH[DPSOHFUHDWHVWZRLQVWDQFHVRIWKHÁLSÁRSPRGXOH IIQDQGGHÀQHGLQH[DPSOH,W
FRQQHFWVRQO\WRWKHTRXWSXWLQRQHLQVWDQFHDQGRQO\WRWKHTEDURXWSXWLQWKHRWKHULQVWDQFH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
DZDYHIRUPGHVFULSWLRQIRUWHVWLQJ
WKHQDQGIOLSIORSZLWKRXWWKHRXWSXWSRUWV
PRGXOHIIQDQGBZDYH
UHJLQLQYDULDEOHVWRGULYHWKHFLUFXLW
SDUDPHWHUG PDNHWZRFRSLHVRIWKHFLUFXLWIIQDQG
IIKDVTEDUXQFRQQHFWHGIIKDVTXQFRQQHFWHG
IIQDQGIIRXWLQLQ
IITEDURXWFOHDULQSUHVHWLQT
IITRXWFOHDULQLVLOOHJDO
GHILQHWKHZDYHIRUPWRVWLPXODWHWKHFLUFXLW
LQLWLDOEHJLQ
GLQ LQ GLQ GLQ GLQ HQG
HQGPRGXOH
2YHUULGLQJPRGXOHSDUDPHWHUYDOXHV
:KHQRQHPRGXOHLQVWDQWLDWHVDQRWKHUPRGXOHLWFDQDOWHUWKHYDOXHVRIDQ\SDUDPHWHUVGHFODUHGZLWKLQWKHLQVWDQWL
DWHG PRGXOH 7KHUH DUH WZR ZD\V WR DOWHU SDUDPHWHU YDOXHV WKH GHISDUDP VWDWHPHQW ZKLFK DOORZV DVVLJQPHQW WR
SDUDPHWHUVXVLQJWKHLUKLHUDUFKLFDOQDPHVDQGWKHPRGXOHLQVWDQFHSDUDPHWHUYDOXHDVVLJQPHQWZKLFKDOORZVYDOXHV
WREHDVVLJQHGLQOLQHGXULQJPRGXOHLQVWDQWLDWLRQ7KHQH[WWZRVXEFODXVHVGHVFULEHWKHVHWZRPHWKRGV
'HISDUDPVWDWHPHQW
8VLQJWKHGHISDUDPVWDWHPHQWSDUDPHWHUYDOXHVFDQEHFKDQJHGLQDQ\PRGXOHLQVWDQFHWKURXJKRXWWKHGHVLJQXVLQJ
WKHKLHUDUFKLFDOQDPHRIWKHSDUDPHWHU6HHIRUKLHUDUFKLFDOQDPHV
7KH H[SUHVVLRQ RQ WKH ULJKWKDQG VLGH RI WKH GHISDUDP DVVLJQPHQWV VKDOO EH D FRQVWDQW H[SUHVVLRQ LQYROYLQJ RQO\
QXPEHUVDQGUHIHUHQFHVWRSDUDPHWHUV7KHUHIHUHQFHGSDUDPHWHUVRQWKHULJKWKDQGVLGHRIWKHGHISDUDPVKDOOEH
GHFODUHGLQWKHVDPHPRGXOHDVWKHGHISDUDPVWDWHPHQW
7KHGHISDUDPVWDWHPHQWLVSDUWLFXODUO\XVHIXOIRUJURXSLQJDOORIWKHSDUDPHWHUYDOXHRYHUULGHDVVLJQPHQWVWRJHWKHULQ
RQHPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
PRGXOHWRS
UHJFON
UHJ>@LQ
UHJ>@LQ
ZLUH>@R
ZLUH>@R
YGIIPRLQFON
YGIIPRLQFON
HQGPRGXOH
PRGXOHYGIIRXWLQFON
SDUDPHWHUVL]H GHOD\ LQSXW>VL]H@LQ
LQSXWFON
RXWSXW>VL]H@RXW
UHJ>VL]H@RXW
DOZD\V#SRVHGJHFON
GHOD\RXW LQ
HQGPRGXOH
PRGXOHDQQRWDWH
GHISDUDP
WRSPVL]H WRSPGHOD\ WRSPVL]H WRSPGHOD\ HQGPRGXOH
7KHPRGXOHDQQRWDWHKDVWKHGHISDUDPVWDWHPHQW\MV\RYHUULGHVVL]HDQGGHOD\SDUDPHWHUYDOXHVIRULQVWDQFHV
P DQG P LQ WKH WRSOHYHO PRGXOH WRS 7KH PRGXOHV WRS DQG DQQRWDWH ZRXOG ERWK EH FRQVLGHUHG WRSOHYHO
PRGXOHV
0RGXOHLQVWDQFHSDUDPHWHUYDOXHDVVLJQPHQW
$Q DOWHUQDWLYH PHWKRG IRU DVVLJQLQJ YDOXHV WR SDUDPHWHUV ZLWKLQ PRGXOH LQVWDQFHV LV VLPLODU LQ DSSHDUDQFH WR WKH
DVVLJQPHQWRIGHOD\YDOXHVWRJDWHLQVWDQFHV,WVXSSOLHVYDOXHVIRUSDUWLFXODULQVWDQFHVRIDPRGXOHWRDQ\SDUDPHWHUV
WKDWKDYHEHHQVSHFLÀHGLQWKHGHÀQLWLRQRIWKDWPRGXOH
7KHRUGHURIWKHDVVLJQPHQWVLQWKHPRGXOHLQVWDQFHSDUDPHWHUYDOXHDVVLJQPHQWVKDOOIROORZWKHRUGHURIGHFODUDWLRQ
RIWKHSDUDPHWHUVZLWKLQWKHPRGXOH,WLVQRWQHFHVVDU\WRDVVLJQYDOXHVWRDOORIWKHSDUDPHWHUVZLWKLQDPRGXOH
ZKHQXVLQJWKLVPHWKRG+RZHYHULWLVQRWSRVVLEOHWRVNLSRYHUDSDUDPHWHU7KHUHIRUHWRDVVLJQYDOXHVWRDVXEVHWRI
WKHSDUDPHWHUVGHFODUHGZLWKLQDPRGXOHWKHGHFODUDWLRQVRIWKHSDUDPHWHUVWKDWPDNHXSWKLVVXEVHWVKDOOSUHFHGHWKH
GHFODUDWLRQVRIWKHUHPDLQLQJSDUDPHWHUV$QDOWHUQDWLYHLVWRDVVLJQYDOXHVWRDOORIWKHSDUDPHWHUVEXWWRXVHWKH
GHIDXOW YDOXH WKH VDPH YDOXH DVVLJQHG LQ WKH GHFODUDWLRQ RI WKH SDUDPHWHU ZLWKLQ WKH PRGXOH GHÀQLWLRQ IRU WKRVH
SDUDPHWHUVWKDWGRQRWQHHGQHZYDOXHV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
([DPSOH
&RQVLGHUWKHIROORZLQJH[DPSOHZKHUHWKHSDUDPHWHUVZLWKLQPRGXOHLQVWDQFHPRGBDDUHFKDQJHGGXULQJLQVWDQWLD
WLRQ
PRGXOHP
UHJFON
ZLUH>@RXWBDLQBD
ZLUH>@RXWBELQBE
FUHDWHDQLQVWDQFHDQGVHWSDUDPHWHUV
YGIIPRGBDRXWBDLQBDFON
FUHDWHDQLQVWDQFHOHDYLQJGHIDXOWYDOXHV
YGIIPRGBERXWBELQBEFON
HQGPRGXOH
PRGXOHYGIIRXWLQFON
SDUDPHWHUVL]H GHOD\ LQSXW>VL]H@LQ
LQSXWFON
RXWSXW>VL]H@RXW
UHJ>VL]H@RXW
DOZD\V#SRVHGJHFON
GHOD\RXW LQ
HQGPRGXOH
,Q WKLV H[DPSOH WKH QDPH RI WKH PRGXOH EHLQJ LQVWDQWLDWHG LV YGII7KH FRQVWUXFW DVVLJQV YDOXHV WR
SDUDPHWHUVXVHGLQWKHPRGBDLQVWDQFHRIYGII7KHSDUDPHWHUVL]HLVDVVLJQHGWKHYDOXHDQGWKHSDUDPHWHU
GHOD\LVDVVLJQHGWKHYDOXHIRUWKHLQVWDQFHRIPRGXOHYGIIFDOOHGPRGBD
3DUDPHWHUGHSHQGHQFH
$ SDUDPHWHU IRU H[DPSOH PHPRU\BVL]H FDQ EH GHÀQHG ZLWK DQ H[SUHVVLRQ FRQWDLQLQJ DQRWKHU SDUDPHWHU IRU
H[DPSOH ZRUGBVL]H 6LQFH PHPRU\BVL]H GHSHQGV RQ WKH YDOXH RI ZRUGBVL]H D PRGLÀFDWLRQ RI
ZRUGBVL]HFKDQJHVWKHYDOXHRIPHPRU\BVL]H)RUH[DPSOHLQWKHIROORZLQJSDUDPHWHUGHFODUDWLRQDQXSGDWH
RIZRUGBVL]HZKHWKHUE\GHISDUDPVWDWHPHQWRULQDQLQVWDQWLDWLRQVWDWHPHQWIRUWKHPRGXOHWKDWGHÀQHGWKHVH
SDUDPHWHUVDXWRPDWLFDOO\XSGDWHVPHPRU\BVL]H
SDUDPHWHU
ZRUGBVL]H PHPRU\BVL]H ZRUGBVL]H
3RUWV
3RUWVSURYLGHDPHDQVRILQWHUFRQQHFWLQJDKDUGZDUHGHVFULSWLRQFRQVLVWLQJRIPRGXOHVSULPLWLYHVDQGPDFURPRG
XOHV)RUH[DPSOHPRGXOH$FDQLQVWDQWLDWHPRGXOH%XVLQJSRUWFRQQHFWLRQVDSSURSULDWHWRPRGXOH$7KHVHSRUW
QDPHVFDQGLIIHUIURPWKHQDPHVRIWKHLQWHUQDOQHWVDQGUHJLVWHUVVSHFLÀHGLQWKHGHÀQLWLRQRIPRGXOH%
3RUWGHÀQLWLRQ
7KHV\QWD[IRUDSRUWLVJLYHQLQ6\QWD[WKLVLVWKHFRPSOHWLRQRIWKHV\QWD[SUHVHQWHGLQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
SRUW >SRUWBH[SUHVVLRQ@
_SRUWBLGHQWLILHU>SRUWBH[SUHVVLRQ@
SRUWBH[SUHVVLRQ SRUWBUHIHUHQFH
_^SRUWBUHIHUHQFH^SRUWBUHIHUHQFH``
SRUWBUHIHUHQFH SRUWBLGHQWLILHU
_SRUWBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
_SRUWBLGHQWLILHU>PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
6\QWD[³6\QWD[IRUSRUW
7KHSRUWH[SUHVVLRQLQWKHSRUWGHÀQLWLRQFDQEHRQHRIWKHIROORZLQJ
³
³
³
³
$VLPSOHLGHQWLÀHU
$ELWVHOHFWRIDYHFWRUGHFODUHGZLWKLQWKHPRGXOH
$SDUWVHOHFWRIDYHFWRUGHFODUHGZLWKLQWKHPRGXOH
$FRQFDWHQDWLRQRIDQ\RIWKHDERYH
7KHWZRW\SHVRIPRGXOHSRUWGHÀQLWLRQVVKDOOQRWEHPL[HGWKHSRUWVRIDSDUWLFXODUPRGXOHGHÀQLWLRQVKDOODOOEH
GHÀQHGE\RUGHURUDOOE\QDPH7KHSRUWH[SUHVVLRQLVRSWLRQDOEHFDXVHSRUWVFDQEHGHÀQHGWKDWGRQRWFRQQHFWWR
DQ\WKLQJLQWHUQDOWRWKHPRGXOH
3RUWGHFODUDWLRQV
(DFKSRUWOLVWHGLQWKHOLVWRISRUWVIRUWKHPRGXOHGHÀQLWLRQVKDOOEHGHFODUHGLQWKHERG\RIWKHPRGXOHDVDQLQSXW
RXWSXWRULQRXWELGLUHFWLRQDO7KLVLVLQDGGLWLRQWRDQ\RWKHUGHFODUDWLRQIRUDSDUWLFXODUSRUW³IRUH[DPSOHDUHJ
RUZLUH7KHV\QWD[IRUSRUWGHFODUDWLRQVLVJLYHQLQ6\QWD[
LQSXWBGHFODUDWLRQ LQSXW>UDQJH@OLVWBRIBSRUWBLGHQWLILHUV
RXWSXWBGHFODUDWLRQ RXWSXW>UDQJH@OLVWBRIBSRUWBLGHQWLILHUV
LQRXWBGHFODUDWLRQ LQRXW>UDQJH@OLVWBRIBSRUWBLGHQWLILHUV
OLVWBRIBSRUWBLGHQWLILHUV SRUWBLGHQWLILHU^SRUWBLGHQWLILHU`
6\QWD[³6\QWD[IRUSRUWGHFODUDWLRQV
$SRUWFDQEHGHFODUHGLQERWKDSRUWGHFODUDWLRQDQGDQHWRUUHJLVWHUGHFODUDWLRQ,IDSRUWLVGHFODUHGDVDYHFWRUWKH
UDQJHVSHFLÀFDWLRQEHWZHHQWKHWZRGHFODUDWLRQVRIDSRUWVKDOOEHLGHQWLFDO
127(³,PSOHPHQWDWLRQVPD\OLPLWPD[LPXPQXPEHURISRUWVLQDPRGXOHGHÀQLWLRQEXWWKH\ZLOODWOHDVWEH
&RQQHFWLQJPRGXOHSRUWVE\RUGHUHGOLVW
2QHPHWKRGRIPDNLQJWKHFRQQHFWLRQEHWZHHQWKHSRUWVOLVWHGLQDPRGXOHLQVWDQWLDWLRQDQGWKHSRUWVGHÀQHGE\WKH
LQVWDQWLDWHGPRGXOHLVWKHRUGHUHGOLVW³WKDWLVWKHSRUWVOLVWHGIRUWKHPRGXOHLQVWDQFHVKDOOEHLQWKHVDPHRUGHUDV
WKHSRUWVOLVWHGLQWKHPRGXOHGHÀQLWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
([DPSOH
7KHIROORZLQJH[DPSOHLOOXVWUDWHVDWRSOHYHOPRGXOHWRSPRGWKDWLQVWDQWLDWHVDVHFRQGPRGXOHPRG%0RGXOH
PRG%KDVSRUWVWKDWDUHFRQQHFWHGE\DQRUGHUHGOLVW7KHFRQQHFWLRQVPDGHDUHDVIROORZV
³
³
³
³
3RUWZDLQWKHPRG%GHÀQLWLRQFRQQHFWVWRWKHELWVHOHFWY>@LQWKHWRSPRGPRGXOH
3RUWZEFRQQHFWVWRY>@
3RUWFFRQQHFWVWRZ
3RUWGFRQQHFWVWRY>@
,QWKHPRG%GHÀQLWLRQSRUWVZDDQGZEDUHGHFODUHGDVLQRXWVZKLOHSRUWVFDQGGDUHGHFODUHGDVLQSXW
PRGXOHWRSPRG
ZLUH>@Y
ZLUHDEFZ
PRG%EY>@Y>@ZY>@
HQGPRGXOH
PRGXOHPRG%ZDZEFG
LQRXWZDZE
LQSXWFG
WUDQLI
JZDZEFLQYHUW
QRW QFLQYHUWLQW
DQG JLQWFG
HQGPRGXOH
'XULQJVLPXODWLRQRIWKHELQVWDQFHRIPRGEWKHDQGJDWHJDFWLYDWHVÀUVWWRSURGXFHDYDOXHRQLQW7KLVYDOXH
WULJJHUVWKHQRWJDWHQWRSURGXFHRXWSXWRQFLQYHUWZKLFKWKHQDFWLYDWHVWKHWUDQLIJDWHJ
&RQQHFWLQJPRGXOHSRUWVE\QDPH
7KHVHFRQGZD\WRFRQQHFWPRGXOHSRUWVFRQVLVWVRIH[SOLFLWO\OLQNLQJWKHWZRQDPHVIRUHDFKVLGHRIWKHFRQQHF
WLRQ³WKHQDPHXVHGLQWKHPRGXOHGHÀQLWLRQIROORZHGE\WKHQDPHXVHGLQWKHLQVWDQWLDWLQJPRGXOH7KLVFRPSRXQG
QDPHLVWKHQSODFHGLQWKHOLVWRIPRGXOHFRQQHFWLRQV7KHQDPHRISRUWVKDOOEHWKHQDPHVSHFLÀHGLQWKHPRGXOHGHI
LQLWLRQ7KHQDPHRISRUWFDQQRWEHDELWVHOHFWDSDUWVHOHFWRUDFRQFDWHQDWLRQRISRUWV
7KHSRUWH[SUHVVLRQVKDOOEHWKHQDPHXVHGE\WKHLQVWDQWLDWLQJPRGXOHDQGFDQEHRQHRIWKHIROORZLQJ
³
³
³
³
$VLPSOHLGHQWLÀHU
$ELWVHOHFWRIDYHFWRUGHFODUHGZLWKLQWKHPRGXOH
$SDUWVHOHFWRIDYHFWRUGHFODUHGZLWKLQWKHPRGXOH
$FRQFDWHQDWLRQRIDQ\RIWKHDERYH
7KHSRUWH[SUHVVLRQLVRSWLRQDOVRWKDWWKHLQVWDQWLDWLQJPRGXOHFDQGRFXPHQWWKHH[LVWHQFHRIWKHSRUWZLWKRXWFRQ
QHFWLQJLWWRDQ\WKLQJ7KHSDUHQWKHVHVDUHUHTXLUHG
7KHWZRW\SHVRIPRGXOHSRUWFRQQHFWLRQVVKDOOQRWEHPL[HGFRQQHFWLRQVWRWKHSRUWVRIDSDUWLFXODUPRGXOHLQVWDQFH
VKDOOEHDOOE\RUGHURUDOOE\QDPH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOHV
([DPSOH³,QWKHIROORZLQJH[DPSOHWKHLQVWDQWLDWLQJPRGXOHFRQQHFWVLWVVLJQDOVWRS$DQGWRS%WRWKHSRUWV,Q
DQG2XWGHÀQHGE\WKHPRGXOH$/3+$$WOHDVWRQHSRUWSURYLGHGE\$/3+$LVXQXVHGLWLVQDPHG,Q7KHUH
FRXOGEHRWKHUXQXVHGSRUWVQRWPHQWLRQHGLQWKHLQVWDQWLDWLRQ
$/3+$LQVWDQFH2XWWRS%,QWRS$,Q
([DPSOH³7KLVH[DPSOHGHÀQHVWKHPRGXOHVPRG%DQGWRSPRGDQGWKHQWRSPRGLQVWDQWLDWHVPRG%XVLQJSRUWV
FRQQHFWHGE\QDPH
PRGXOHWRSPRG
ZLUH>@Y
ZLUHDEFZ
PRG%EZEY>@ZDY>@GY>@FZ
HQGPRGXOH
PRGXOHPRG%ZDZEFG
LQRXWZDZE
LQSXWFG
WUDQLI
JZDZEFLQYHUW
QRW QFLQYHUWLQW
DQG JLQWFG
HQGPRGXOH
6LQFHWKHVHFRQQHFWLRQVDUHPDGHE\QDPHWKHRUGHULQZKLFKWKH\DSSHDULVLUUHOHYDQW
5HDOQXPEHUVLQSRUWFRQQHFWLRQV
7KHUHDOGDWDW\SHVKDOOQRWEHGLUHFWO\FRQQHFWHGWRDSRUW,WVKDOOEHFRQQHFWHGLQGLUHFWO\DVVKRZQLQWKHIROORZ
LQJH[DPSOH7KHV\VWHPIXQFWLRQVUHDOWRELWVDQGELWVWRUHDOVKDOOEHXVHGIRUSDVVLQJWKHELWSDWWHUQVDFURVVPRG
XOHSRUWV6HHIRUDGHVFULSWLRQRIWKHVHV\VWHPWDVNV
([DPSOH
PRGXOHGULYHUQHWBU
RXWSXWQHWBU
UHDOU
ZLUH>@QHWBU UHDOWRELWVU
HQGPRGXOH
PRGXOHUHFHLYHUQHWBU
LQSXWQHWBU
ZLUH>@QHWBU
UHDOU
LQLWLDODVVLJQU ELWVWRUHDOQHWBU
HQGPRGXOH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
&RQQHFWLQJGLVVLPLODUSRUWV
$SRUWRIDPRGXOHFDQEHYLHZHGDVSURYLGLQJDOLQNRUFRQQHFWLRQEHWZHHQWZRLWHPVQHWVUHJLVWHUVH[SUHVVLRQV
HWF³RQHLQWHUQDOWRWKHPRGXOHLQVWDQFHDQGRQHH[WHUQDOWRWKHPRGXOHLQVWDQFH
([DPLQDWLRQRIWKHSRUWFRQQHFWLRQUXOHVGHVFULEHGLQZLOOVKRZWKDWWKHLWHPUHFHLYLQJWKHYDOXHWKURXJKWKH
SRUWWKHLQWHUQDOLWHPIRULQSXWVWKHH[WHUQDOLWHPIRURXWSXWVVKDOOEHDVWUXFWXUDOQHWH[SUHVVLRQ7KHLWHPWKDWSUR
YLGHVWKHYDOXHFDQEHDQ\H[SUHVVLRQ
127(³$SRUWWKDWLVGHFODUHGDVLQSXWRXWSXWEXWXVHGDVDQRXWSXWLQSXWRULQRXWPD\EHFRHUFHGWRLQRXW,IQRWFRHUFHGWR
LQRXWDZDUQLQJKDVWREHLVVXHG
3RUWFRQQHFWLRQUXOHV
7KHIROORZLQJUXOHVVKDOOJRYHUQWKHZD\PRGXOHSRUWVDUHGHFODUHGDQGWKHZD\WKH\DUHLQWHUFRQQHFWHG
5XOH
$QLQSXWRULQRXWSRUWVKDOOEHRIW\SHQHW
5XOH
(DFKSRUWFRQQHFWLRQVKDOOEHDFRQWLQXRXVDVVLJQPHQWRIVRXUFHWRVLQNZKHUHRQHFRQQHFWHGLWHPVKDOOEHDVLJQDO
VRXUFHDQGWKHRWKHUVKDOOEHDVLJQDOVLQN7KHDVVLJQPHQWVKDOOEHDFRQWLQXRXVDVVLJQPHQWIURPVRXUFHWRVLQNIRU
LQSXWRURXWSXWSRUWV7KHDVVLJQPHQWLVDQRQVWUHQJWKUHGXFLQJWUDQVLVWRUFRQQHFWLRQIRULQRXWSRUWV2QO\QHWVRU
VWUXFWXUDOQHWH[SUHVVLRQVVKDOOEHWKHVLQNVLQDQDVVLJQPHQW
$VWUXFWXUDOQHWH[SUHVVLRQLVDSRUWH[SUHVVLRQZKRVHRSHUDQGVFDQEHWKHIROORZLQJ
³
³
³
³
³
$VFDODUQHW
$YHFWRUQHW
$FRQVWDQWELWVHOHFWRIDYHFWRUQHW
$SDUWVHOHFWRIDYHFWRUQHW
$FRQFDWHQDWLRQRIVWUXFWXUDOQHWH[SUHVVLRQV
7KHIROORZLQJH[WHUQDOLWHPVVKDOOQRWEHFRQQHFWHGWRWKHRXWSXWRULQRXWSRUWVRIPRGXOHV
³ 5HJLVWHUV
³ ([SUHVVLRQVRWKHUWKDQ
³
$VFDODUQHW
³
$YHFWRUQHW
³
$FRQVWDQWELWVHOHFWRIDYHFWRUQHW
³
$SDUWVHOHFWRIDYHFWRUQHW
³
$FRQFDWHQDWLRQRIWKHH[SUHVVLRQVOLVWHGDERYH
1HWW\SHVUHVXOWLQJIURPGLVVLPLODUSRUWFRQQHFWLRQV
:KHQGLIIHUHQWQHWW\SHVDUHFRQQHFWHGWKURXJKDPRGXOHSRUWWKHQHWVRQERWKVLGHVRIWKHSRUWFDQWDNHRQWKHVDPH
W\SH7KHUHVXOWLQJQHWW\SHFDQEHGHWHUPLQHGDVVKRZQLQ7DEOH,QWKHWDEOHH[WHUQDOQHWPHDQVWKHQHWVSHFL
ÀHGLQWKHPRGXOHLQVWDQWLDWLRQDQGLQWHUQDOQHWPHDQVWKHQHWVSHFLÀHGLQWKHPRGXOHGHÀQLWLRQ7KHQHWZKRVHW\SH
LVXVHGLVVDLGWREHWKHGRPLQDWLQJQHW7KHQHWZKRVHW\SHLVFKDQJHGLVVDLGWREHWKHGRPLQDWHGQHW,WLVSHUPLVVL
EOHWRPHUJHWKHGRPLQDWLQJDQGGRPLQDWHGQHWVLQWRDVLQJOHQHWZKRVHW\SHVKDOOEHWKDWRIWKHGRPLQDWLQJQHW7KH
UHVXOWLQJQHWLVFDOOHGWKHVLPXODWHGQHWDQGWKHGRPLQDWHGQHWLVFDOOHGDFROODSVHGQHW
7KHVLPXODWHGQHWVKDOOWDNHWKHGHOD\VSHFLÀHGIRUWKHGRPLQDWLQJQHW,IWKHGRPLQDWLQJQHWLVRIWKHW\SHWULUHJDQ\
VWUHQJWKYDOXHVSHFLÀHGIRUWKHWULUHJQHWVKDOODSSO\WRWKHVLPXODWHGQHW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
1HWW\SHUHVROXWLRQUXOH
:KHQWKHWZRQHWVFRQQHFWHGE\DSRUWDUHRIGLIIHUHQWQHWW\SHWKHUHVXOWLQJVLQJOHQHWFDQEHDVVLJQHGRQHRIWKHIRO
ORZLQJ
³ 7KHGRPLQDWLQJQHWW\SHLIRQHRIWKHWZRQHWVLVGRPLQDWLQJRU
³ 7KHQHWW\SHH[WHUQDOWRWKHPRGXOH
:KHQDGRPLQDWLQJQHWW\SHGRHVQRWH[LVWWKHH[WHUQDOQHWW\SHVKDOOEHXVHG
1HWW\SHWDEOH
7DEOHVKRZVWKHQHWW\SHGLFWDWHGE\QHWW\SHUHVROXWLRQUXOH
7KHVLPXODWHGQHWVKDOOWDNHWKHQHWW\SHVSHFLÀHGLQWKHWDEOHDQGWKHGHOD\VSHFLÀHGIRUWKDWQHW,IWKHVLPXODWHGQHW
VHOHFWHGLVDWULUHJDQ\VWUHQJWKYDOXHVSHFLÀHGIRUWKHWULUHJQHWDSSOLHVWRWKHVLPXODWHGQHW
7DEOH³1HWW\SHVUHVXOWLQJIURPGLVVLPLODUSRUWFRQQHFWLRQV
,QWHUQDO
QHW
([WHUQDOQHW
ZLUH
WUL
ZDQG
WULDQG
ZRU
WULRU
WULUHJ
WUL
WUL
VXSSO\
VXSSO\
ZLUH
WUL
H[W
H[W
H[W
H[W
H[W
H[W
H[W
H[W
ZDQG
WULDQG
LQW
H[W
ZDUQ
ZDUQ
ZDUQ
ZDUQ
H[W
H[W
ZRU
WULRU
LQW
LQW
H[W
ZDUQ
ZDUQ
ZDUQ
H[W
H[W
WULUHJ
LQW
LQW
ZDUQ
H[W
H[W
H[W
H[W
H[W
WUL
LQW
LQW
ZDUQ
LQW
H[W
ZDUQ
H[W
H[W
WUL
LQW
LQW
ZDUQ
LQW
ZDUQ
H[W
H[W
H[W
VXSSO\
LQW
LQW
LQW
LQW
LQW
LQW
H[W
ZDUQ
VXSSO\
LQW
LQW
LQW
LQW
LQW
LQW
ZDUQ
H[W
.(<
H[W 7KHH[WHUQDOQHWW\SHLVXVHG
LQW 7KHLQWHUQDOQHWW\SHLVXVHG
ZDUQ $ZDUQLQJLVLVVXHGDQGWKHH[WHUQDOQHWW\SHLVXVHG
+LHUDUFKLFDOQDPHV
(YHU\LGHQWLÀHULQD9HULORJ+'/GHVFULSWLRQVKDOOKDYHDXQLTXHKLHUDUFKLFDOSDWKQDPH7KHKLHUDUFK\RIPRGXOHV
DQGWKHGHÀQLWLRQRILWHPVVXFKDVWDVNVDQGQDPHGEORFNVZLWKLQWKHPRGXOHVVKDOOGHÀQHWKHVHQDPHV7KHKLHUDU
FK\RIQDPHVFDQEHYLHZHGDVDWUHHVWUXFWXUHZKHUHHDFKPRGXOHLQVWDQFHWDVNIXQFWLRQRUQDPHGEHJLQHQG
RUIRUNMRLQEORFNGHÀQHVDQHZKLHUDUFKLFDOOHYHORUVFRSHLQDSDUWLFXODUEUDQFKRIWKHWUHH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
$WWKHWRSRIWKHQDPHKLHUDUFK\DUHWKHQDPHVRIPRGXOHVRIZKLFKQRLQVWDQFHVKDYHEHHQFUHDWHG,WLVWKHURRWRI
WKHKLHUDUFK\,QVLGHDQ\PRGXOHHDFKPRGXOHLQVWDQFHWDVNGHÀQLWLRQIXQFWLRQGHÀQLWLRQDQGQDPHGEHJLQHQG
RUIRUNMRLQEORFNVKDOOGHÀQHDQHZEUDQFKRIWKHKLHUDUFK\1DPHGEORFNVZLWKLQQDPHGEORFNVDQGZLWKLQ
WDVNVDQGIXQFWLRQVVKDOOFUHDWHQHZEUDQFKHV
(DFKQRGHLQWKHKLHUDUFKLFDOQDPHWUHHVKDOOEHDVHSDUDWHVFRSHZLWKUHVSHFWWRLGHQWLÀHUV$SDUWLFXODULGHQWLÀHUFDQ
EHGHFODUHGDWPRVWRQFHLQDQ\VFRSH6HHIRUDGLVFXVVLRQRIVFRSHUXOHVDQGIRUDGLVFXVVLRQRIQDPH
VSDFHV
$Q\QDPHG9HULORJREMHFWFDQEHUHIHUHQFHGXQLTXHO\LQLWVIXOOIRUPE\FRQFDWHQDWLQJWKHQDPHVRIWKHPRGXOHV
WDVNVIXQFWLRQVRUEORFNVWKDWFRQWDLQLW7KHSHULRGFKDUDFWHUVKDOOEHXVHGWRVHSDUDWHHDFKRIWKHQDPHVLQWKHKLHU
DUFK\7KHFRPSOHWHSDWKQDPHWRDQ\REMHFWVKDOOVWDUWDWDWRSOHYHOPRGXOH7KLVSDWKQDPHFDQEHXVHGIURPDQ\
OHYHOLQWKHGHVFULSWLRQ7KHÀUVWQRGHQDPHLQDSDWKQDPHFDQDOVREHWKHWRSRIDKLHUDUFK\WKDWVWDUWVDWWKHOHYHO
ZKHUHWKHSDWKLVEHLQJXVHG
([DPSOHV
([DPSOH³7KHFRGHLQWKLVH[DPSOHGHÀQHVDKLHUDUFK\RIPRGXOHLQVWDQFHVDQGQDPHGEORFNV)LJXUHLOOXV
WUDWHVWKHKLHUDUFK\LPSOLFLWLQWKLV9HULORJFRGH)LJXUHLVDOLVWRIWKHKLHUDUFKLFDOIRUPVRIWKHQDPHVRIDOOWKH
REMHFWVGHÀQHGLQWKHFRGH
PRGXOHPRGLQ
LQSXWLQ
PRGXOHFFWVWLPVWLP
LQSXWVWLPVWLP
DOZD\V#SRVHGJHLQEHJLQNHHS
UHJKROG
KROG LQ
HQG
HQGPRGXOH
LQVWDQWLDWHPRG
PRGDPRGVWLPEPRGVWLP
HQGPRGXOH
PRGXOHZDYH
UHJVWLPVWLP
FFWDVWLPVWLPLQVWDQWLDWHFFW
LQLWLDOEHJLQZDYH
IRUNLQQHUZDYH
UHJKROG
MRLQ
EHJLQ
VWLP HQG
HQG
HQGPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
ZDYH
ZDYH
D
DPRG
EPRG
NHHS
NHHS
LQQHUZDYH
)LJXUH³+LHUDUFK\LQDPRGHO
ZDYH
ZDYHDEPRG
ZDYHVWLP ZDYHDEPRGLQ
ZDYHVWLP ZDYHDEPRGNHHS
ZDYHD
ZDYHDEPRGNHHSKROG
ZDYHDVWLPZDYHZDYH
ZDYHDVWLPZDYHZDYHLQQHUZDYH
ZDYHDDPRG ZDYHZDYHLQQHUZDYHKROG
ZDYHDDPRGLQ
ZDYHDDPRGNHHS
ZDYHDDPRGNHHSKROG
)LJXUH³+LHUDUFKLFDOSDWKQDPHVLQDPRGHO
+LHUDUFKLFDOQDPHUHIHUHQFLQJDOORZVIUHHGDWDDFFHVVWRDQ\REMHFWIURPDQ\OHYHOLQWKHKLHUDUFK\,IWKHXQLTXHKLHU
DUFKLFDOSDWKQDPHRIDQLWHPLVNQRZQLWVYDOXHFDQEHVDPSOHGRUFKDQJHGIURPDQ\ZKHUHZLWKLQWKHGHVFULSWLRQ
([DPSOH³7KHQH[WH[DPSOHVKRZVKRZDSDLURIQDPHGEORFNVFDQUHIHUWRLWHPVGHFODUHGZLWKLQHDFKRWKHU
EHJLQ
IRUNPRGB
UHJ[
PRGB[ MRLQ
HQG
IRUNPRGB
UHJ[
PRGB[ MRLQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
8SZDUGVQDPHUHIHUHQFLQJ
$ORZHUOHYHOPRGXOHFDQUHIHUHQFHLWHPVLQDPRGXOHDERYHLWLQWKHKLHUDUFK\LIWKHQDPHRIWKHKLJKHUOHYHOPRGXOH
LVNQRZQ7KHV\QWD[IRUDQXSZDUGUHIHUHQFHLVJLYHQLQ6\QWD[
XSZDUGBQDPHBUHIHUHQFH
PRGXOHBLGHQWLILHULWHPBQDPH
LWHPBQDPH
SRUWBLGHQWLILHU
_UHJBLGHQWLILHU
_QHWBLGHQWLILHU
_SDUDPHWHUBLGHQWLILHU
_IXQFWLRQBLGHQWLILHU
_WDVNBLGHQWLILHU
_QDPHGBEORFNBLGHQWLILHU
6\QWD[³6\QWD[IRUXSZDUGQDPHUHIHUHQFLQJ
8SZDUGVQDPHUHIHUHQFHVFDQDOVREHGRQHZLWKQDPHVRIWKHIRUP
PRGXOHBLQVWDQFHBQDPHLWHPBQDPH
$QDPHRIWKLVIRUPVKDOOEHUHVROYHGDVIROORZV
D
E
F
/RRNLQWKHFXUUHQWPRGXOHIRUDPRGXOHLQVWDQFHQDPHGPRGXOHBLQVWDQFHBQDPH,IIRXQGWKLVQDPH
UHIHUHQFHVKDOOEHWUHDWHGDVDGRZQZDUGUHIHUHQFHDQGWKHLWHPQDPHVKDOOEHUHVROYHGLQWKHFRUUHVSRQGLQJ
PRGXOH
/RRN LQ WKH SDUHQW PRGXOH IRU D PRGXOH LQVWDQFH QDPHGPRGXOHBLQVWDQFHBQDPH ,I IRXQG WKH LWHP
QDPHVKDOOEHUHVROYHGIURPWKDWLQVWDQFHZKLFKLVWKHVLEOLQJRIWKHPRGXOHFRQWDLQLQJWKHUHIHUHQFH
5HSHDWVWHSEJRLQJXSWKHKLHUDUFK\
7KHUHVKDOOEHQRVSDFHVZLWKLQWKHKLHUDUFKLFDOQDPHUHIHUHQFH
([DPSOH
,QWKLVH[DPSOHWKHUHDUHIRXUPRGXOHVDEFDQGG(DFKPRGXOHFRQWDLQVDQLQWHJHUL7KHKLJKHVWOHYHOPRG
XOHVLQWKLVVHJPHQWRIDPRGHOKLHUDUFK\DUHDDQGG7KHUHDUHWZRFRSLHVRIPRGXOHEEHFDXVHPRGXOHDDQGG
LQVWDQWLDWHE7KHUHDUHIRXUFRSLHVRIFLEHFDXVHHDFKRIWKHWZRFRSLHVRIELQVWDQWLDWHVFWZLFH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHD
LQWHJHUL
E DBE
HQGPRGXOH
PRGXOHE
LQWHJHUL
F EBFEBF
LQLWLDO
GRZQZDUGSDWKUHIHUHQFHVWZRFRSLHVRIL
EBFL DDBEEBFLGGBEEBFL
HQGPRGXOH
PRGXOHF
LQWHJHUL
LQLWLDOEHJLQ
L EL HQG
HQGPRGXOH
ORFDOQDPHUHIHUHQFHVIRXUFRSLHVRIL
DDBEEBFLDDBEEBFL
GGBEEBFLGGBEEBFL
XSZDUGSDWKUHIHUHQFHVWZRFRSLHVRIL
DDBELGGBEL
PRGXOHG
LQWHJHUL
EGBE
LQLWLDOEHJLQ
IXOOSDWKQDPHUHIHUHQFHVHDFKFRS\RIL
DL GL DDBEL GGBEL DDBEEBFL GGBEEBFL DDBEEBFL GGBEEBFL HQG
HQGPRGXOH
6FRSHUXOHV
7KHIROORZLQJIRXUHOHPHQWVGHÀQHDQHZVFRSHLQ9HULORJ
³
³
³
³
0RGXOHV
7DVNV
)XQFWLRQV
1DPHGEORFNV
$QLGHQWLÀHUVKDOOEHXVHGWRGHFODUHRQO\RQHLWHPZLWKLQDVFRSH7KLVUXOHPHDQVLWLVLOOHJDOWRGHFODUHWZRRUPRUH
YDULDEOHVWKDWKDYHWKHVDPHQDPHRUWRQDPHDWDVNWKHVDPHDVDYDULDEOHZLWKLQWKHVDPHPRGXOHRUWRJLYHDJDWH
LQVWDQFHWKHVDPHQDPHDVWKHQDPHRIWKHQHWFRQQHFWHGWRLWVRXWSXW
,IDQLGHQWLÀHULVUHIHUHQFHGGLUHFWO\ZLWKRXWDKLHUDUFKLFDOSDWKZLWKLQDWDVNIXQFWLRQRUQDPHGEORFNLWVKDOOEH
GHFODUHGHLWKHUORFDOO\ZLWKLQWKHWDVNIXQFWLRQRUQDPHGEORFNRUZLWKLQDPRGXOHWDVNRUQDPHGEORFNWKDWLV
KLJKHULQWKHVDPHEUDQFKRIWKHQDPHWUHHWKDWFRQWDLQVWKHWDVNIXQFWLRQRUQDPHGEORFN,ILWLVGHFODUHGORFDOO\
WKHQWKHORFDOLWHPVKDOOEHXVHGLIQRWWKHVHDUFKVKDOOFRQWLQXHXSZDUGXQWLODQLWHPE\WKDWQDPHLVIRXQGRUXQWLO
DPRGXOHERXQGDU\LVHQFRXQWHUHG7KHVHDUFKVKDOOFURVVQDPHGEORFNWDVNDQGIXQFWLRQERXQGDULHVEXWQRWPRGXOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
ERXQGDULHV7KLVIDFWPHDQVWKDWWDVNVDQGIXQFWLRQVFDQXVHDQGPRGLI\WKHYDULDEOHVZLWKLQWKHFRQWDLQLQJPRGXOH
E\QDPHZLWKRXWJRLQJWKURXJKWKHLUSRUWV
%HFDXVHRIWKHXSZDUGVHDUFKLQJSDWKQDPHVWKDWDUHQRWVWULFWO\RQDGRZQZDUGSDWKFDQEHXVHG
([DPSOH
([DPSOH³,Q)LJXUHHDFKUHFWDQJOHUHSUHVHQWVDORFDOVFRSH7KHVFRSHDYDLODEOHWRXSZDUGVHDUFKLQJH[WHQGV
RXWZDUGWRDOOFRQWDLQLQJUHFWDQJOHV³ZLWKWKHERXQGDU\RIWKHPRGXOH$DVWKHRXWHUOLPLW7KXVEORFN*FDQGLUHFWO\
UHIHUHQFHLGHQWLÀHUVLQ)(DQG$LWFDQQRWGLUHFWO\UHIHUHQFHLGHQWLÀHUVLQ+%&DQG'
PRGXOH$
6FRSHVQRW
DYDLODEOHWR
EORFN*
EORFN%
WDVN(
EORFN)
WDVN&
6FRSHVDYDLODEOH
WREORFN*
EORFN*
EORFN+
IXQF'
)LJXUH³6FRSHVDYDLODEOHWRXSZDUGQDPHUHIHUHQFLQJ
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVDQLQFRPSOHWHO\GHÀQHGGRZQZDUGUHIHUHQFHWKDWFDQEHDFFHVVHG
WDVNW
UHJUV
EHJLQE
UHGXQGDQWDVVLJQPHQWVWRUHJU
WEU SRRUO\GHILQHGEXWIRXQGE\XSZDUGVHDUFK
WV IXOO\GHILQHGGRZQZDUGUHIHUHQFH
HQG
HQGWDVN
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
6SHFLI\EORFNV
7ZRW\SHVRI+'/FRQVWUXFWVDUHRIWHQXVHGWRGHVFULEHGHOD\VIRUVWUXFWXUDOPRGHOVVXFKDV$6,&FHOOV7KH\DUH
³
'LVWULEXWHGGHOD\VZKLFKVSHFLI\WKHWLPHLWWDNHVHYHQWVWRSURSDJDWHWKURXJKJDWHVDQGQHWVLQVLGHWKHPRG
XOHVHH
³
0RGXOHSDWKGHOD\VZKLFKGHVFULEHWKHWLPHLWWDNHVDQHYHQWDWDVRXUFHLQSXWSRUWRULQRXWSRUWWRSURSD
JDWHWRDGHVWLQDWLRQRXWSXWSRUWRULQRXWSRUW
7KLVVHFWLRQGHVFULEHVKRZSDWKVDUHVSHFLÀHGLQDPRGXOHDQGKRZGHOD\VDUHDVVLJQHGWRWKHVHSDWKV
6SHFLI\EORFNGHFODUDWLRQ
$EORFNVWDWHPHQWFDOOHGWKHVSHFLI\EORFNLVWKHYHKLFOHIRUGHVFULELQJSDWKVEHWZHHQDVRXUFHDQGDGHVWLQDWLRQDQG
IRUDVVLJQLQJGHOD\VWRWKHVHSDWKV7KHV\QWD[IRUVSHFLI\EORFNLVVKRZQLQ6\QWD[
VSHFLI\BEORFN VSHFLI\>VSHFLI\BLWHP@HQGVSHFLI\
VSHFLI\BLWHP VSHFSDUDPBGHFODUDWLRQ
_SDWKBGHFODUDWLRQ
_V\VWHPBWLPLQJBFKHFN
6\QWD[³6\QWD[RIVSHFLI\EORFN
7KHVSHFLI\EORFNVKDOOEHERXQGHGE\WKHNH\ZRUGVVSHFLI\DQGHQGVSHFLI\DQGLWVKDOODSSHDULQVLGHDPRGXOHGHF
ODUDWLRQ7KHVSHFLI\EORFNFDQEHXVHGWRSHUIRUPWKHIROORZLQJWDVNV
³ 'HVFULEHYDULRXVSDWKVDFURVVWKHPRGXOH
³ $VVLJQGHOD\VWRWKRVHSDWKV
³ 3HUIRUPWLPLQJFKHFNVWRHQVXUHWKDWHYHQWVRFFXUULQJDWWKHPRGXOHLQSXWVVDWLVI\WKHWLPLQJFRQVWUDLQWVRI
WKHGHYLFHGHVFULEHGE\WKHPRGXOH6HH
7KH SDWKV GHVFULEHG LQ WKH VSHFLI\ EORFN FDOOHG PRGXOH SDWKV SDLU D VLJQDO VRXUFH ZLWK D VLJQDO GHVWLQDWLRQ7KH
VRXUFH PD\ EH XQLGLUHFWLRQDO DQ LQSXW SRUW RU ELGLUHFWLRQDO DQ LQRXW SRUW DQG LV UHIHUUHG WR DV WKH PRGXOH SDWK
VRXUFH6LPLODUO\WKHGHVWLQDWLRQPD\EHXQLGLUHFWLRQDODQRXWSXWSRUWRUELGLUHFWLRQDODQLQRXWSRUWDQGLVUHIHUUHG
WRDVWKHPRGXOHSDWKGHVWLQDWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([DPSOH
VSHFLI\
VSHFSDUDPW5LVHBFONBT W)DOOBFONBT VSHFSDUDPW6HWXS FON !T W5LVHBFONBTW)DOOBFONBT
VHWXSGSRVHGJHFONW6HWXS
HQGVSHFLI\
7KHÀUVWWZROLQHVIROORZLQJWKHNH\ZRUG VSHFLI\GHFODUHVSHFLI\SDUDPHWHUVZKLFKDUHGLVFXVVHGLQ7KHOLQH
IROORZLQJWKHGHFODUDWLRQVRIVSHFLI\SDUDPHWHUVGHVFULEHVDPRGXOHSDWKDQGDVVLJQVGHOD\VWRWKDWPRGXOHSDWK7KH
VSHFLI\SDUDPHWHUVGHWHUPLQHWKHGHOD\DVVLJQHGWRWKHPRGXOHSDWK6SHFLI\LQJPRGXOHSDWKVLVSUHVHQWHGLQ
$VVLJQLQJGHOD\VWRPRGXOHSDWKVLVGLVFXVVHGLQ7KHOLQHSUHFHGLQJWKHNH\ZRUGHQGVSHFLI\LQVWDQWLDWHVRQHRI
WKHV\VWHPWLPLQJFKHFNVZKLFKDUHGLVFXVVHGIXUWKHULQ
'HFODULQJSDUDPHWHUVLQVSHFLI\EORFNV
7KHNH\ZRUG VSHFSDUDPGHFODUHVSDUDPHWHUVZLWKLQVSHFLI\EORFNV³FDOOHG VSHFLI\SDUDPHWHUVRU VSHFSDUDPV WR
GLVWLQJXLVKWKHPIURPPRGXOHSDUDPHWHUV7KHV\QWD[IRUGHFODULQJVSHFLI\SDUDPHWHUVLVVKRZQLQ6\QWD[
VSHFSDUDPBGHFODUDWLRQ VSHFSDUDPOLVWBRIBVSHFSDUDPBDVVLJQPHQWV
OLVWBRIBVSHFSDUDPBDVVLJQPHQWV VSHFSDUDPBDVVLJQPHQW^VSHFSDUDPBDVVLJQPHQW`
VSHFSDUDPBDVVLJQPHQW VSHFSDUDPBLGHQWLILHU FRQVWDQWBH[SUHVVLRQ
_SXOVHBFRQWUROBVSHFSDUDP
6\QWD[³6\QWD[RIWKHVSHFSDUDPGHFODUDWLRQ
$VSHFLI\SDUDPHWHUVKDOOEHGHFODUHGDQGXVHGRQO\ZLWKLQWKHVSHFLI\EORFN7KHYDOXHDVVLJQHGWRDVSHFLI\SDUDP
HWHUFDQEHDQ\FRQVWDQWH[SUHVVLRQ$VSHFLI\SDUDPHWHUGHFODUHGLQWKHVSHFLI\EORFNFDQEHXVHGWRFRQVWUXFWDFRQ
VWDQWH[SUHVVLRQIRUDVXEVHTXHQWVSHFLI\SDUDPHWHUGHFODUDWLRQ$VSHFLI\SDUDPHWHUVKDOOQRWEHYLVLEOHRXWVLGHWKH
VSHFLI\EORFNLQZKLFKLWLVGHFODUHG
7KHVSHFLI\SDUDPHWHUVDQGPRGXOHSDUDPHWHUVVKDOOQRWEHLQWHUFKDQJHDEOH7DEOHVXPPDUL]HVWKHGLIIHUHQFHV
EHWZHHQWKHWZRW\SHVRISDUDPHWHUGHFODUDWLRQV
7DEOH³'LIIHUHQFHVEHWZHHQVSHFSDUDPVDQGSDUDPHWHUV
6SHFSDUDPV
6SHFLI\SDUDPHWHU
6HFWLRQ
3DUDPHWHUV
0RGXOHSDUDPHWHU
8VHNH\ZRUGVSHFSDUDP
8VHNH\ZRUGSDUDPHWHU
6KDOOEHGHFODUHGLQVLGHVSHFLI\EORFNV
6KDOOEHGHFODUHGRXWVLGHVSHFLI\EORFNV
0D\RQO\EHXVHGLQVLGHVSHFLI\EORFNV
0D\QRWEHXVHGLQVLGHVSHFLI\EORFNV
&DQQRWXVHGHISDUDPWRRYHUULGHYDOXHV
8VHGHISDUDPWRRYHUULGHYDOXHV
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
VSHFLI\
VSHFSDUDPW5LVHBFONBT W)DOOBFONBT VSHFSDUDPW5LVHBFRQWURO W)DOOBFRQWURO HQGVSHFLI\
7KHOLQHVEHWZHHQWKHNH\ZRUGVVSHFLI\DQGHQGVSHFLI\GHFODUHIRXUVSHFLI\SDUDPHWHUV7KHÀUVWOLQHGHFODUHVVSHF
LI\SDUDPHWHUVFDOOHG W5LVHBFONBTDQG W)DOOBFONBTZLWKYDOXHV DQG UHVSHFWLYHO\WKHVHFRQGOLQH
GHFODUHVW5LVHBFRQWURODQGW)DOOBFRQWUROVSHFLI\SDUDPHWHUVZLWKYDOXHVDQGUHVSHFWLYHO\
0RGXOHSDWKGHFODUDWLRQV
7KHUHDUHWZRVWHSVUHTXLUHGWRVHWXSPRGXOHSDWKGHOD\VLQDVSHFLI\EORFN
D
'HVFULEHWKHPRGXOHSDWKV
E
$VVLJQGHOD\VWRWKRVHSDWKVVHH
7KHV\QWD[RIWKHPRGXOHSDWKGHFODUDWLRQLVGHVFULEHGLQ6\QWD[
SDWKBGHFODUDWLRQ VLPSOHBSDWKBGHFODUDWLRQ
_HGJHBVHQVLWLYHBSDWKBGHFODUDWLRQ
_VWDWHGHSHQGHQWBSDWKBGHFODUDWLRQ
6\QWD[³6\QWD[RIWKHPRGXOHSDWKGHFODUDWLRQ
$PRGXOHSDWKPD\EHGHVFULEHGDVD VLPSOHSDWKDQ HGJHVHQVLWLYHSDWKRUD VWDWHGHSHQGHQWSDWK$PRGXOHSDWK
VKDOOEHGHÀQHGLQVLGHDVSHFLI\EORFNDVDFRQQHFWLRQEHWZHHQDVRXUFHVLJQDODQGDGHVWLQDWLRQVLJQDO0RGXOHSDWKV
FDQFRQQHFWDQ\FRPELQDWLRQRIYHFWRUVDQGVFDODUV
([DPSOH
)LJXUHLOOXVWUDWHVDFLUFXLWZLWKPRGXOHSDWKGHOD\V0RUHWKDQRQHVRXUFH$ % &DQG 'PD\KDYHDPRGXOH
SDWKWRWKHVDPHGHVWLQDWLRQ4DQGGLIIHUHQWGHOD\VPD\EHVSHFLÀHGIRUHDFKLQSXWWRRXWSXWSDWK
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
Q
$
%
4
&
'
PRGXOHSDWKGHOD\
02'8/(3$7+6
IURP$WR4
IURP%WR4
IURP&WR4
IURP'WR4
)LJXUH³0RGXOHSDWKGHOD\V
0RGXOHSDWKUHVWULFWLRQV
0RGXOHSDWKVKDYHWKHIROORZLQJUHVWULFWLRQV
³ 7KHPRGXOHSDWKVRXUFHVKDOOEHDQHWWKDWLVFRQQHFWHGWRDPRGXOHLQSXWSRUWRULQRXWSRUW
³ 7KHPRGXOHSDWKGHVWLQDWLRQVKDOOEHDQHWRUUHJLVWHUWKDWLVFRQQHFWHGWRDPRGXOHRXWSXWSRUWRULQRXWSRUW
³ 7KHPRGXOHSDWKGHVWLQDWLRQVKDOOKDYHRQO\RQHGULYHULQVLGHWKHPRGXOH
6LPSOHPRGXOHSDWKV
7KHV\QWD[IRUVSHFLI\LQJDVLPSOHPRGXOHSDWKLVJLYHQLQ6\QWD[
VLPSOHBSDWKBGHFODUDWLRQ SDUDOOHOBSDWKBGHVFULSWLRQ SDWKBGHOD\BYDOXH
_IXOOBSDWKBGHVFULSWLRQ SDWKBGHOD\BYDOXH
SDUDOOHOBSDWKBGHVFULSWLRQ VSHFLI\BLQSXWBWHUPLQDOBGHVFULSWRU>SRODULW\BRSHUDWRU@ !
VSHFLI\BRXWSXWBWHUPLQDOBGHVFULSWRU
IXOOBSDWKBGHVFULSWLRQ
OLVWBRIBSDWKBLQSXWV>SRODULW\BRSHUDWRU@!OLVWBRIBSDWKBRXWSXWV
OLVWBRIBSDWKBLQSXWV VSHFLI\BLQSXWBWHUPLQDOBGHVFULSWRU^
VSHFLI\BLQSXWBWHUPLQDOBGHVFULSWRU`
OLVWBRIBSDWKBRXWSXWV VSHFLI\BRXWSXWBWHUPLQDOBGHVFULSWRU^
VSHFLI\BRXWSXWBWHUPLQDOBGHVFULSWRU`
VSHFLI\BLQSXWBWHUPLQDOBGHVFULSWRU LQSXWBLGHQWLILHU
_LQSXWBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
_LQSXWBLGHQWLILHU>PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
VSHFLI\BRXWSXWBWHUPLQDOBGHVFULSWRU RXWSXWBLGHQWLILHU
_RXWSXWBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
_RXWSXWBLGHQWLILHU>PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
LQSXWBLGHQWLILHU LQSXWBSRUWBLGHQWLILHU_LQRXWBSRUWBLGHQWLILHU
6\QWD[³6\QWD[IRUVLPSOHPRGXOHSDWK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6LPSOHSDWKFDQEHGHFODUHGLQRQHRIWKHWZRIRUPV
³ VRXUFH!GHVWLQDWLRQ
³ VRXUFH !GHVWLQDWLRQ
7KHV\PEROV!DQG !HDFKUHSUHVHQWDGLIIHUHQWNLQGRIFRQQHFWLRQEHWZHHQWKHPRGXOHSDWKVRXUFHDQGWKHPRG
XOHSDWKGHVWLQDWLRQ7KHRSHUDWRU!HVWDEOLVKHVDIXOOFRQQHFWLRQEHWZHHQVRXUFHDQGGHVWLQDWLRQ7KHRSHUDWRU !
HVWDEOLVKHVDSDUDOOHOFRQQHFWLRQEHWZHHQVRXUFHDQGGHVWLQDWLRQ5HIHUWRIRUDGHVFULSWLRQRIIXOOFRQQHFWLRQ
DQGSDUDOOHOFRQQHFWLRQSDWKV
([DPSOH
7KHIROORZLQJWKUHHH[DPSOHVLOOXVWUDWHYDOLGVLPSOHPRGXOHSDWKGHFODUDWLRQV
$ !4 % !4 &'!4 (GJHVHQVLWLYHSDWKV
:KHQDPRGXOHSDWKLVGHVFULEHGXVLQJDQHGJHWUDQVLWLRQDWWKHVRXUFHLWLVFDOOHGDQHGJHVHQVLWLYHSDWK7KHHGJH
VHQVLWLYHSDWKFRQVWUXFWLVXVHGWRPRGHOWKHWLPLQJRILQSXWWRRXWSXWGHOD\VZKLFKRQO\RFFXUZKHQDVSHFLÀHGHGJH
RFFXUVDWWKHVRXUFHVLJQDO
7KHV\QWD[RIWKHHGJHVHQVLWLYHSDWKGHFODUDWLRQLVVKRZQLQ6\QWD[
HGJHBVHQVLWLYHBSDWKBGHFODUDWLRQ SDUDOOHOBHGJHBVHQVLWLYHBSDWKBGHVFULSWLRQ SDWKBGHOD\BYDOXH
_IXOOBHGJHBVHQVLWLYHBSDWKBGHVFULSWLRQ SDWKBGHOD\BYDOXH
SDUDOOHOBHGJHBVHQVLWLYHBSDWKBGHVFULSWLRQ
>HGJHBLGHQWLILHU@VSHFLI\BLQSXWBWHUPLQDOBGHVFULSWRU !
VSHFLI\BRXWSXWBWHUPLQDOBGHVFULSWRU>SRODULW\BRSHUDWRU@
GDWDBVRXUFHBH[SUHVVLRQ
IXOOBHGJHBVHQVLWLYHBSDWKBGHVFULSWLRQ
>HGJHBLGHQWLILHU@OLVWBRIBSDWKBLQSXWV!
OLVWBRIBSDWKBRXWSXWV>SRODULW\BRSHUDWRU@GDWDBVRXUFHBH[SUHVVLRQ
GDWDBVRXUFHBH[SUHVVLRQ H[SUHVVLRQ
6\QWD[³6\QWD[RIWKHHGJHVHQVLWLYHSDWKGHFODUDWLRQ
7KHHGJHLGHQWLÀHUPD\EHRQHRIWKHNH\ZRUGVSRVHGJHRUQHJHGJHDVVRFLDWHGZLWKDQLQSXWWHUPLQDOGHVFULSWRU
ZKLFKPD\EHDQ\LQSXWSRUWRULQRXWSRUW,IDYHFWRUSRUWLVVSHFLÀHGDVWKHLQSXWWHUPLQDOGHVFULSWRUWKHHGJHWUDQ
VLWLRQVKDOOEHGHWHFWHGRQWKHOHDVWVLJQLÀFDQWELW,IWKHHGJHWUDQVLWLRQLVQRWVSHFLÀHGWKHSDWKVKDOOEHFRQVLGHUHG
DFWLYHRQDQ\WUDQVLWLRQDWWKHLQSXWWHUPLQDO
$QHGJHVHQVLWLYHSDWKPD\EHVSHFLÀHGZLWKIXOOFRQQHFWLRQV!RUSDUDOOHOFRQQHFWLRQV !)RUSDUDOOHOFRQQHF
WLRQV !WKHGHVWLQDWLRQVKDOOEHDQ\VFDODURXWSXWRULQRXWSRUWRURQHRILWVELWVHOHFWV)RUIXOOFRQQHFWLRQV!
WKHGHVWLQDWLRQVKDOOEHDOLVWRIRQHRUPRUHRIWKHYHFWRURUVFDODURXWSXWDQGLQRXWSRUWVDQGELWVHOHFWVRUSDUW
VHOHFWVRIWKRVHSRUWV5HIHUWRIRUDGHVFULSWLRQRISDUDOOHOSDWKVDQGIXOOFRQQHFWLRQSDWKV
7KHGDWDVRXUFHH[SUHVVLRQLVDQDUELWUDU\H[SUHVVLRQZKLFKVHUYHVDVDGHVFULSWLRQRIWKHÁRZRIGDWDWRWKHSDWKGHV
WLQDWLRQ 7KLV DUELWUDU\ GDWD SDWK GHVFULSWLRQ GRHV QRW DIIHFW WKH DFWXDO SURSDJDWLRQ RI GDWD RU HYHQWV WKURXJK WKH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PRGHOKRZDQHYHQWDWWKHGDWDSDWKVRXUFHSURSDJDWHVWRWKHGHVWLQDWLRQGHSHQGVRQWKHLQWHUQDOORJLFRIWKHPRGXOH
7KHSRODULW\RSHUDWRUGHVFULEHVZKHWKHUWKHGDWDSDWKLVLQYHUWLQJRUQRQLQYHUWLQJ
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHGHPRQVWUDWHVDQHGJHVHQVLWLYHSDWKGHFODUDWLRQZLWKDSRVLWLYHSRODULW\RSHUDWRU
SRVHGJHFORFN !RXWLQ ,QWKLVH[DPSOHDWWKHSRVLWLYHHGJHRIFORFNDPRGXOHSDWKH[WHQGVIURPFORFNWRRXWXVLQJDULVHGHOD\RI
DQGDIDOOGHOD\RI7KHGDWDSDWKLVIURPLQWRRXWDQGLQLVQRWLQYHUWHGDVLWSURSDJDWHVWRRXW
([DPSOH ³7KH IROORZLQJ H[DPSOH GHPRQVWUDWHV DQ HGJHVHQVLWLYH SDWK GHFODUDWLRQ ZLWK D QHJDWLYH SRODULW\
RSHUDWRU
QHJHGJHFORFN>@ !RXWLQ ,QWKLVH[DPSOHDWWKHQHJDWLYHHGJHRIFORFN>@DPRGXOHSDWKH[WHQGVIURPFORFN>@WRRXWXVLQJDULVH
GHOD\RIDQGDIDOOGHOD\RI7KHGDWDSDWKLVIURPLQWRRXWDQGLQLVLQYHUWHGDVLWSURSDJDWHVWRRXW
([DPSOH³7KHIROORZLQJH[DPSOHGHPRQVWUDWHVDQHGJHVHQVLWLYHSDWKGHFODUDWLRQZLWKQRHGJHLGHQWLÀHU
FORFN !RXWLQ ,QWKLVH[DPSOHDWDQ\FKDQJHLQFORFNDPRGXOHSDWKH[WHQGVIURPFORFNWRRXW
6WDWHGHSHQGHQWSDWKV
$VWDWHGHSHQGHQWSDWKPDNHVLWSRVVLEOHWRDVVLJQDGHOD\WRDPRGXOHSDWKWKDWDIIHFWVVLJQDOSURSDJDWLRQGHOD\
WKURXJKWKHSDWKRQO\LIVSHFLÀHGFRQGLWLRQVDUHWUXH
$VWDWHGHSHQGHQWSDWKGHVFULSWLRQLQFOXGHVWKHIROORZLQJLWHPV
³ $FRQGLWLRQDOH[SUHVVLRQWKDWZKHQHYDOXDWHGWUXHHQDEOHVWKHPRGXOHSDWK
³ $PRGXOHSDWKGHVFULSWLRQ
³ $GHOD\H[SUHVVLRQWKDWDSSOLHVWRWKHPRGXOHSDWK
7KHV\QWD[IRUWKHVWDWHGHSHQGHQWSDWKGHFODUDWLRQLVVKRZQLQ6\QWD[
VWDWHBGHSHQGHQWBSDWKBGHFODUDWLRQ
LIFRQGLWLRQDOBH[SUHVVLRQVLPSOHBSDWKBGHFODUDWLRQ
_LIFRQGLWLRQDOBH[SUHVVLRQHGJHBVHQVLWLYHBSDWKBGHFODUDWLRQ
_LIQRQHVLPSOHBSDWKBGHFODUDWLRQ
6\QWD[³6\QWD[RIVWDWHGHSHQGHQWSDWKV
&RQGLWLRQDOH[SUHVVLRQ
7KHRSHUDQGVLQWKHFRQGLWLRQDOH[SUHVVLRQVKDOOEHFRQVWUXFWHGIURPWKHIROORZLQJ
³ 6FDODURUYHFWRUPRGXOHLQSXWSRUWVRULQRXWSRUWVRUWKHLUELWVHOHFWVRUSDUWVHOHFWV
³ /RFDOO\GHÀQHGUHJLVWHUVRUQHWVRUWKHLUELWVHOHFWVRUSDUWVHOHFWV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
³ &RPSLOHWLPHFRQVWDQWVFRQVWDQWQXPEHUVDQGVSHFLI\SDUDPHWHUV
7DEOHFRQWDLQVDOLVWRIYDOLGRSHUDWRUVWKDWPD\EHXVHGLQFRQGLWLRQDOH[SUHVVLRQV
7DEOH³/LVWRIYDOLGRSHUDWRUVLQVWDWHGHSHQGHQWSDWKGHOD\H[SUHVVLRQ
2SHUDWRU
'HVFULSWLRQ
2SHUDWRU
'HVFULSWLRQ
a
ELWZLVHQHJDWLRQ
UHGXFWLRQDQG
ELWZLVHDQG
_
UHGXFWLRQRU
_
ELWZLVHRU
A
UHGXFWLRQ[RU
A
ELWZLVH[RU
a
UHGXFWLRQQDQG
AaaA
ELWZLVH[QRU
a_
UHGXFWLRQQRU
ORJLFDOHTXDOLW\
AaaA
UHGXFWLRQ[QRU
ORJLFDOLQHTXDOLW\
^`
FRQFDWHQDWLRQ
ORJLFDODQG
^^``
UHSOLFDWLRQ
__
ORJLFDORU
"
FRQGLWLRQDO
ORJLFDOQRW
$FRQGLWLRQDOH[SUHVVLRQVKDOOHYDOXDWHWRWUXHIRUWKHVWDWHGHSHQGHQWSDWKWREHDVVLJQHGDGHOD\YDOXH,IWKH
FRQGLWLRQDOH[SUHVVLRQHYDOXDWHVWR[RU]LWVKDOOEHWUHDWHGDVWUXH,IWKHFRQGLWLRQDOH[SUHVVLRQHYDOXDWHVWRPXOWL
SOHELWVWKHOHDVWVLJQLÀFDQWELWVKDOOUHSUHVHQWWKHUHVXOW7KHFRQGLWLRQDOH[SUHVVLRQFDQKDYHDQ\QXPEHURIRSHU
DQGVDQGRSHUDWRUV
6LPSOHVWDWHGHSHQGHQWSDWKV
,IWKHSDWKGHVFULSWLRQRIDVWDWHGHSHQGHQWSDWKLVDVLPSOHSDWKWKHQLWLVFDOOHGDVLPSOHVWDWHGHSHQGHQWSDWK7KH
VLPSOHSDWKGHVFULSWLRQLVGLVFXVVHGLQ
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHXVHVVWDWHGHSHQGHQWSDWKVWRGHVFULEHWKHWLPLQJRIDQ;25JDWH
PRGXOH;25JDWHDERXW
LQSXWDE
RXWSXWRXW
[RU[RXWDE
VSHFLI\
VSHFSDUDPQRQLQYULVH QRQLQYIDOO VSHFSDUDPLQYHUWULVH LQYHUWIDOO LIDE !RXW LQYHUWULVHLQYHUWIDOO
LIED !RXW LQYHUWULVHLQYHUWIDOO
LIaDE !RXW QRQLQYULVHQRQLQYIDOO
LIaED !RXW QRQLQYULVHQRQLQYIDOO
HQGVSHFLI\
HQGPRGXOH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
,QWKLVH[DPSOHÀUVWWZRVWDWHGHSHQGHQWSDWKVGHVFULEHDSDLURIRXWSXWULVHDQGIDOOGHOD\WLPHVZKHQWKH;25JDWH
[LQYHUWVDFKDQJLQJLQSXW7KHODVWWZRVWDWHGHSHQGHQWSDWKVGHVFULEHDQRWKHUSDLURIRXWSXWULVHDQGIDOOGHOD\
WLPHVZKHQWKH;25JDWHEXIIHUVDFKDQJLQJLQSXW
([DPSOH³7KHIROORZLQJH[DPSOHPRGHOVDSDUWLDO$/87KHVWDWHGHSHQGHQWSDWKVVSHFLI\GLIIHUHQWGHOD\VIRUGLI
IHUHQW$/8RSHUDWLRQV
PRGXOH$/8RLLRSFRGH
LQSXW>@LL
LQSXW>@RSFRGH
RXWSXW>@R
IXQFWLRQDOGHVFULSWLRQRPLWWHG
VSHFLI\
DGGRSHUDWLRQ
LIRSFRGH ·ELL!R SDVVWKURXJKLRSHUDWLRQ
LIRSFRGH ·EL !R SDVVWKURXJKLRSHUDWLRQ
LIRSFRGH ·EL !R GHOD\VRQRSFRGHFKDQJHV
RSFRGH !R HQGVSHFLI\
HQGPRGXOH
,QWKHSUHFHGLQJH[DPSOHWKHÀUVWWKUHHSDWKGHFODUDWLRQVGHFODUHSDWKVH[WHQGLQJIURPRSHUDQGLQSXWVLDQGLWR
WKHRRXWSXW7KHGHOD\VRQWKHVHSDWKVDUHDVVLJQHGWRRSHUDWLRQVRQWKHEDVLVRIWKHRSHUDWLRQVSHFLÀHGE\WKH
LQSXWVRQRSFRGH7KHODVWSDWKGHFODUDWLRQGHFODUHVDSDWKIURPWKHRSFRGHLQSXWWRWKHRRXWSXW
(GJHVHQVLWLYHVWDWHGHSHQGHQWSDWKV
,IWKHSDWKGHVFULSWLRQRIDVWDWHGHSHQGHQWSDWKGHVFULEHVDQHGJHGHSHQGHQWSDWKWKHQWKHVWDWHGHSHQGHQWSDWKLV
FDOOHGDQHGJHVHQVLWLYHVWDWHGHSHQGHQWSDWK7KHHGJHVHQVLWLYHSDWKVDUHGLVFXVVHGLQ
'LIIHUHQWGHOD\VFDQEHDVVLJQHGWRWKHVDPHHGJHVHQVLWLYHSDWKDVORQJDVWKHIROORZLQJFULWHULDDUHPHW
³ 7KHHGJHFRQGLWLRQRUERWKPDNHHDFKGHFODUDWLRQXQLTXH
³ 7KHSRUWLVUHIHUHQFHGLQWKHVDPHZD\LQDOOSDWKGHFODUDWLRQVHQWLUHSRUWELWVHOHFWRUSDUWVHOHFW
([DPSOHV
([DPSOH
LIUHVHWFOHDU
SRVHGJHFORFN !RXWLQ ,QWKLVH[DPSOHLIWKHSRVLWLYHHGJHRIFORFNRFFXUVZKHQUHVHWDQGFOHDUDUHORZDQGDPRGXOHSDWKH[WHQGV
IURPFORFNWRRXWXVLQJDULVHGHOD\RIDQGDIDOOGHOD\RI
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVIRXUHGJHVHQVLWLYHSDWKGHFODUDWLRQV1RWHWKDWHDFKSDWKKDVDXQLTXH
HGJHRUFRQGLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
VSHFLI\
SRVHGJHFON !T>@GDWD QHJHGJHFON !T>@GDWD LIUHVHW
SRVHGJHFON !T>@GDWD LIUHVHWFQWUO
SRVHGJHFON !T>@GDWD HQGVSHFLI\
([DPSOH³7KHWZRVWDWHGHSHQGHQWSDWKGHFODUDWLRQVVKRZQEHORZDUHQRWOHJDOEHFDXVHHYHQWKRXJKWKH\KDYHGLI
IHUHQWFRQGLWLRQVWKHGHVWLQDWLRQVDUHQRWVSHFLÀHGLQWKHVDPHZD\WKHÀUVWGHVWLQDWLRQLVDSDUWVHOHFWWKHVHFRQGLV
DELWVHOHFW
VSHFLI\
LIUHVHW
SRVHGJHFON !T>@GDWD LIUHVHW
SRVHGJHFON !T>@GDWD HQGVSHFLI\
7KHLIQRQHFRQGLWLRQ
7KHLIQRQHNH\ZRUGLVXVHGWRVSHFLI\DGHIDXOWVWDWHGHSHQGDQWSDWKGHOD\ZKHQDOORWKHUFRQGLWLRQVIRUWKHSDWKDUH
IDOVH7KHLIQRQHFRQGLWLRQVKDOOVSHFLI\WKHVDPHPRGXOHSDWKVRXUFHDQGGHVWLQDWLRQDVWKHVWDWHGHSHQGHQWPRGXOH
SDWKV7KHIROORZLQJUXOHVDSSO\WRPRGXOHSDWKVVSHFLÀHGZLWKWKHLIQRQHFRQGLWLRQ
³ 2QO\VLPSOHPRGXOHSDWKVPD\EHGHVFULEHGZLWKDQLIQRQHFRQGLWLRQ
³ 7KHVWDWHGHSHQGHQWSDWKVWKDWFRUUHVSRQGWRWKHLIQRQHSDWKPD\EHHLWKHUVLPSOHPRGXOHSDWKVRUHGJHVHQ
VLWLYHSDWKV
³ ,IWKHUHDUHQRFRUUHVSRQGLQJVWDWHGHSHQGHQWPRGXOHSDWKVWRWKHLIQRQHPRGXOHSDWKWKHQWKHLIQRQHPRG
XOHSDWKVKDOOEHWUHDWHGWKHVDPHDVDQXQFRQGLWLRQDOVLPSOHPRGXOHSDWK
³ ,WLVLOOHJDOWRVSHFLI\ERWKDQLIQRQHFRQGLWLRQIRUDPRGXOHSDWKDQGDQXQFRQGLWLRQDOVLPSOHPRGXOHSDWKIRU
WKHVDPHPRGXOHSDWK
([DPSOHV
([DPSOH³7KHIROORZLQJDUHYDOLGVWDWHGHSHQGHQWSDWKFRPELQDWLRQV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LI&,1 !287 LIQRQH,1 !287 DGGRSHUDWLRQ
LIRSFRGH ·ELL!R SDVVWKURXJKLRSHUDWLRQ
LIRSFRGH ·EL !R SDVVWKURXJKLRSHUDWLRQ
LIRSFRGH ·EL !R DOORWKHURSHUDWLRQV
LIQRQHL !R SRVHGJH&/. !4' LIQRQH&/. !4 ([DPSOH³7KHIROORZLQJPRGXOHSDWKGHVFULSWLRQFRPELQDWLRQLVLOOHJDOEHFDXVHLWFRPELQHVDVWDWHGHSHQGHQWSDWK
XVLQJDQLIQRQHFRQGLWLRQDQGDQXQFRQGLWLRQDOSDWKIRUWKHVDPHPRGXOHSDWK
LIDE !RXW LIED !RXW LIQRQHD !RXW D !RXW 6WDWHGHSHQGHQWDQGXQFRQGLWLRQDOSDWKSUHFHGHQFH
$ VLPSOH PRGXOH SDWK ZLWK QR HGJHVHQVLWLYH RU VWDWHGHSHQGHQW FRQGLWLRQV LV DQ XQFRQGLWLRQDO SDWK ,I ERWK DQ
XQFRQGLWLRQDOSDWKDQGDVWDWHGHSHQGHQWSDWKDUHVSHFLÀHGIRUWKHVDPHPRGXOHSDWKWKHQWKHXQFRQGLWLRQDOSDWK
GHOD\VKDOOWDNHSUHFHGHQFHRYHUWKHVWDWHGHSHQGHQWSDWKGHOD\
)XOOFRQQHFWLRQDQGSDUDOOHOFRQQHFWLRQSDWKV
7KHRSHUDWRU!VKDOOEHXVHGWRHVWDEOLVKDIXOOFRQQHFWLRQEHWZHHQVRXUFHDQGGHVWLQDWLRQ,QDIXOOFRQQHFWLRQ
HYHU\ELWLQWKHVRXUFHVKDOOFRQQHFWWRHYHU\ELWLQWKHGHVWLQDWLRQ7KHPRGXOHSDWKVRXUFHQHHGQRWKDYHWKHVDPH
QXPEHURIELWVDVWKHPRGXOHSDWKGHVWLQDWLRQ
7KHIXOOFRQQHFWLRQFDQKDQGOHPRVWW\SHVRIPRGXOHSDWKVVLQFHLWGRHVQRWUHVWULFWWKHVL]HRUQXPEHURIVRXUFHVLJ
QDOVDQGGHVWLQDWLRQVLJQDOV7KHIROORZLQJVLWXDWLRQVUHTXLUHWKHXVHRIIXOOFRQQHFWLRQV
³ 7RGHVFULEHDPRGXOHSDWKEHWZHHQDYHFWRUDQGDVFDODU
³ 7RGHVFULEHDPRGXOHSDWKEHWZHHQYHFWRUVRIGLIIHUHQWVL]HV
³ 7RGHVFULEHDPRGXOHSDWKZLWKPXOWLSOHVRXUFHVRUPXOWLSOHGHVWLQDWLRQVLQDVLQJOHVWDWHPHQWVHH
7KHRSHUDWRU !VKDOOEHXVHGWRHVWDEOLVKDSDUDOOHOFRQQHFWLRQEHWZHHQVRXUFHDQGGHVWLQDWLRQ,QDSDUDOOHOFRQQHF
WLRQHDFKELWLQWKHVRXUFHVKDOOFRQQHFWWRRQHFRUUHVSRQGLQJELWLQWKHGHVWLQDWLRQ3DUDOOHOPRGXOHSDWKVFDQEHFUH
DWHGRQO\EHWZHHQVRXUFHVDQGGHVWLQDWLRQVWKDWFRQWDLQWKHVDPHQXPEHURIELWV
3DUDOOHO FRQQHFWLRQV DUH PRUH UHVWULFWLYH WKDQ IXOO FRQQHFWLRQV 7KH\ RQO\ FRQQHFW RQH VRXUFH WR RQH GHVWLQDWLRQ
ZKHUHHDFKVLJQDOFRQWDLQVWKHVDPHQXPEHURIELWV7KHUHIRUHDSDUDOOHOFRQQHFWLRQPD\RQO\EHXVHGWRGHVFULEHD
PRGXOHSDWKEHWZHHQWZRYHFWRUVRIWKHVDPHVL]H6LQFHVFDODUVDUHRQHELWZLGHHLWKHU!RU !PD\EHXVHGWRVHW
XSELWWRELWFRQQHFWLRQVEHWZHHQWZRVFDODUV
([DPSOHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH ³)LJXUH LOOXVWUDWHV KRZ D SDUDOOHO FRQQHFWLRQ GLIIHUV IURP D IXOO FRQQHFWLRQ EHWZHHQ WZR ELW
YHFWRUV
3DUDOOHOPRGXOHSDWK
,QSXWELWV2XWSXWELWV
)XOOPRGXOHSDWK
,QSXWELWV2XWSXWELWV
1 QXPEHURIELWV 1XPEHURISDWKV 1 8VH
!
WRGHILQHSDWK
ELWWRELWFRQQHFWLRQV
1XPEHURISDWKV 11 8VH
!
WRGHILQHSDWK
ELWWRYHFWRUFRQQHFWLRQV
)LJXUH³7KHGLIIHUHQFHEHWZHHQSDUDOOHODQGIXOOFRQQHFWLRQSDWKV
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVPRGXOHSDWKVIRUDPXOWLSOH[RUZLWKWZRELWLQSXWVDQGRQHELW
RXWSXW
PRGXOHPX[LQLQVT
RXWSXW>@T
LQSXW>@LQLQ
LQSXWV
)XQFWLRQDOGHVFULSWLRQRPLWWHG
VSHFLI\
LQ !T LQ !T V!T HQGVSHFLI\
HQGPRGXOH
7KHPRGXOHSDWKIURPVWRTXVHVDIXOOFRQQHFWLRQ!EHFDXVHLWFRQQHFWVDVFDODUVRXUFH³WKHELWVHOHFWOLQH³
WRDYHFWRUGHVWLQDWLRQ³WKHELWRXWSXWEXV7KHPRGXOHSDWKVIURPERWKLQSXWOLQHVLQDQGLQWRTXVHDSDUDOOHO
FRQQHFWLRQ !EHFDXVHWKH\VHWXSSDUDOOHOFRQQHFWLRQVEHWZHHQWZRELWEXVHV
'HFODULQJPXOWLSOHPRGXOHSDWKVLQDVLQJOHVWDWHPHQW
0XOWLSOHPRGXOHSDWKVPD\EHGHVFULEHGLQDVLQJOHVWDWHPHQWE\XVLQJWKHV\PERO!WRFRQQHFWDFRPPDVHSDUDWHG
OLVWRIVRXUFHVWRDFRPPDVHSDUDWHGOLVWRIGHVWLQDWLRQV:KHQGHVFULELQJPXOWLSOHPRGXOHSDWKVLQRQHVWDWHPHQWWKH
OLVWVRIVRXUFHVDQGGHVWLQDWLRQVPD\FRQWDLQDPL[RIVFDODUVDQGYHFWRUVRIDQ\VL]H
7KHFRQQHFWLRQLQDPXOWLSOHPRGXOHSDWKGHFODUDWLRQLVDOZD\VDIXOOFRQQHFWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
([DPSOH
DEF!TT LVHTXLYDOHQWWRWKHIROORZLQJVL[LQGLYLGXDOPRGXOHSDWKDVVLJQPHQWV
D!T
E!T
F!T
D!T
E!T
F!T
0RGXOHSDWKSRODULW\
7KHSRODULW\RIDPRGXOHSDWKLVDQDUELWUDU\VSHFLÀFDWLRQLQGLFDWLQJZKHWKHURUQRWWKHGLUHFWLRQRIDVLJQDOWUDQVLWLRQ
LVLQYHUWHGDVLWSURSDJDWHVIURPWKHLQSXWWRWKHRXWSXW7KLVDUELWUDU\SRODULW\GHVFULSWLRQGRHVQRWDIIHFWWKHDFWXDO
SURSDJDWLRQ RI GDWD RU HYHQWV WKURXJK WKH PRGHO KRZ D ULVH RU D IDOO DW WKH VRXUFH SURSDJDWHV WR WKH GHVWLQDWLRQ
GHSHQGVRQWKHLQWHUQDOORJLFRIWKHPRGXOH
0RGXOHSDWKVPD\VSHFLI\DQ\RIWKUHHSRODULWLHV
³ 8QNQRZQSRODULW\
³ 3RVLWLYHSRODULW\
³ 1HJDWLYHSRODULW\
8QNQRZQSRODULW\
%\GHIDXOWPRGXOHSDWKVVKDOOKDYHXQNQRZQSRODULW\³WKDWLVDWUDQVLWLRQDWWKHSDWKVRXUFHPD\SURSDJDWHWRWKH
GHVWLQDWLRQLQDQXQSUHGLFWDEOHZD\DVIROORZV
³ $ULVHDWWKHVRXUFHPD\FDXVHHLWKHUDULVHWUDQVLWLRQDIDOOWUDQVLWLRQRUQRWUDQVLWLRQDWWKHGHVWLQDWLRQ
³ $IDOODWWKHVRXUFHPD\FDXVHHLWKHUDULVHWUDQVLWLRQDIDOOWUDQVLWLRQRUQRWUDQVLWLRQDWWKHGHVWLQDWLRQ
$PRGXOHSDWKVSHFLÀHGHLWKHUDVDIXOOFRQQHFWLRQRUDSDUDOOHOFRQQHFWLRQEXWZLWKRXWDSRODULW\RSHUDWRURU
VKDOOEHWUHDWHGDVDPRGXOHSDWKZLWKXQNQRZQSRODULW\
3RVLWLYHSRODULW\
)RUPRGXOHSDWKVZLWKSRVLWLYHSRODULW\DQ\WUDQVLWLRQDWWKHVRXUFHPD\FDXVHWKHVDPHWUDQVLWLRQDWWKHGHVWLQDWLRQ
DVIROORZV
³ $ULVHDWWKHVRXUFHPD\FDXVHHLWKHUDULVHWUDQVLWLRQRUQRWUDQVLWLRQDWWKHGHVWLQDWLRQ
³ $IDOODWWKHVRXUFHPD\FDXVHHLWKHUDIDOOWUDQVLWLRQRUQRWUDQVLWLRQDWWKHGHVWLQDWLRQ
$PRGXOHSDWKZLWKSRVLWLYHSRODULW\VKDOOEHVSHFLÀHGE\SUHÀ[LQJWKHSRODULW\RSHUDWRUWR !RU!
1HJDWLYHSRODULW\
)RUPRGXOHSDWKVZLWKQHJDWLYHSRODULW\DQ\WUDQVLWLRQDWWKHVRXUFHPD\FDXVHWKHRSSRVLWHWUDQVLWLRQDWWKHGHVWLQD
WLRQDVIROORZV
³ $ULVHDWWKHVRXUFHPD\FDXVHHLWKHUDIDOOWUDQVLWLRQRUQRWUDQVLWLRQDWWKHGHVWLQDWLRQ
³ $IDOODWWKHVRXUFHPD\FDXVHHLWKHUDULVHWUDQVLWLRQRUQRWUDQVLWLRQDWWKHGHVWLQDWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$PRGXOHSDWKZLWKQHJDWLYHSRODULW\VKDOOEHVSHFLÀHGE\SUHÀ[LQJWKHSRODULW\RSHUDWRUWR !RU!
([DPSOHV
7KHIROORZLQJH[DPSOHVVKRZHDFKW\SHRISDWKSRODULW\
3RVLWLYHSRODULW\
,Q !T ,QBWRBT
V!T VBWRBT
1HJDWLYHSRODULW\
,Q !T ,QBWRBT
V!T VBWRBT
8QNQRZQSRODULW\
,Q !T ,QBWRBT
V!T VBWRBT
$VVLJQLQJGHOD\VWRPRGXOHSDWKV
7KHGHOD\VWKDWRFFXUDWWKHPRGXOHRXWSXWVZKHUHSDWKVWHUPLQDWHVKDOOEHVSHFLÀHGE\DVVLJQLQJGHOD\YDOXHVWRWKH
PRGXOHSDWKGHVFULSWLRQV7KHV\QWD[IRUVSHFLI\LQJGHOD\YDOXHVLVVKRZQLQ6\QWD[
SDWKBGHOD\BYDOXH OLVWBRIBSDWKBGHOD\BH[SUHVVLRQV
_OLVWBRIBSDWKBGHOD\BH[SUHVVLRQV
OLVWBRIBSDWKBGHOD\BH[SUHVVLRQV WBSDWKBGHOD\BH[SUHVVLRQ
_WULVHBSDWKBGHOD\BH[SUHVVLRQWIDOOBSDWKBGHOD\BH[SUHVVLRQ
_WULVHBSDWKBGHOD\BH[SUHVVLRQWIDOOBSDWKBGHOD\BH[SUHVVLRQ
W]BSDWKBGHOD\BH[SUHVVLRQ
_WBSDWKBGHOD\BH[SUHVVLRQWBSDWKBGHOD\BH[SUHVVLRQ
W]BSDWKBGHOD\BH[SUHVVLRQ
W]BSDWKBGHOD\BH[SUHVVLRQW]BSDWKBGHOD\BH[SUHVVLRQ
W]BSDWKBGHOD\BH[SUHVVLRQ
_WBSDWKBGHOD\BH[SUHVVLRQWBSDWKBGHOD\BH[SUHVVLRQ
W]BSDWKBGHOD\BH[SUHVVLRQ
6\QWD[³6\QWD[IRUSDWKGHOD\YDOXH
,QPRGXOHSDWKGHOD\DVVLJQPHQWVDPRGXOHSDWKGHVFULSWLRQVHHLVVSHFLÀHGRQWKHOHIWKDQGVLGHDQGRQHRU
PRUH GHOD\ YDOXHV DUH VSHFLÀHG RQ WKH ULJKWKDQG VLGH7KH GHOD\ YDOXHV PD\ EH RSWLRQDOO\ HQFORVHG LQ D SDLU RI
SDUHQWKHVHV7KHUHPD\EHRQHWZRWKUHHVL[RUWZHOYHGHOD\YDOXHVDVVLJQHGWRDPRGXOHSDWKDVGHVFULEHGLQ
7KHGHOD\YDOXHVVKDOOEHFRQVWDQWH[SUHVVLRQVFRQWDLQLQJOLWHUDOVRUVSHFSDUDPVDQGWKHUHPD\EHDGHOD\
H[SUHVVLRQRIWKHIRUPPLQW\SPD[
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([DPSOH
VSHFLI\
6SHFLI\3DUDPHWHUV
VSHFSDUDPW5LVHBFONBT W)DOOBFONBT VSHFSDUDPW5LVHB&RQWURO W)DOOBFRQWURO 0RGXOH3DWK$VVLJQPHQWV
FON !T W5LVHBFONBTW)DOOBFONBT
FOUSUH!T W5LVHBFRQWUROW)DOOBFRQWURO
HQGVSHFLI\
,QWKHH[DPSOHDERYHWKHVSHFLI\SDUDPHWHUVGHFODUHGIROORZLQJWKHVSHFSDUDPNH\ZRUGVSHFLI\YDOXHVIRUWKHPRG
XOHSDWKGHOD\V7KHPRGXOHSDWKDVVLJQPHQWVDVVLJQWKRVHPRGXOHSDWKGHOD\VWRWKHPRGXOHSDWKV
6SHFLI\LQJWUDQVLWLRQGHOD\VRQPRGXOHSDWKV
(DFKSDWKGHOD\H[SUHVVLRQPD\EHDVLQJOHYDOXH³UHSUHVHQWLQJWKHW\SLFDOGHOD\³RUDFRORQVHSDUDWHGOLVWRIWKUHH
YDOXHV³UHSUHVHQWLQJDPLQLPXPW\SLFDODQGPD[LPXPGHOD\LQWKDWRUGHU,IWKHSDWKGHOD\H[SUHVVLRQUHVXOWVLQD
QHJDWLYHYDOXHLWVKDOOEHWUHDWHGDV]HUR7DEOHGHVFULEHVKRZGLIIHUHQWSDWKGHOD\YDOXHVVKDOOEHDVVRFLDWHG
ZLWKYDULRXVWUDQVLWLRQV7KHSDWKGHOD\H[SUHVVLRQQDPHVUHIHUWRWKHQDPHVXVHGLQ6\QWD[
7DEOH³$VVRFLDWLQJSDWKGHOD\H[SUHVVLRQVZLWKWUDQVLWLRQV
1XPEHURISDWKGHOD\H[SUHVVLRQVVSHFLÀHG
7UDQVLWLRQV
!
W
WULVH
WULVH
W
W
!
W
WIDOO
WIDOO
W
W
!]
W
WULVH
W]
W]
W]
]!
W
WULVH
WULVH
W]
W]
!]
W
WIDOO
W]
W]
W]
]!
W
WIDOO
WIDOO
W]
W]
![
W[
[!
W[
![
W[
[!
W[
[!]
W[]
]![
W][
6HH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
RQHH[SUHVVLRQVSHFLILHVDOOWUDQVLWLRQV
& !4 & !4 WZRH[SUHVVLRQVVSHFLI\ULVHDQGIDOOGHOD\V
VSHFSDUDPW3/+ W3+/ VSHFSDUDPW3/+ W3+/ & !4 W3/+W3+/
& !4 W3/+W3+/
WKUHHH[SUHVVLRQVVSHFLI\ULVHIDOODQG]WUDQVLWLRQGHOD\V
VSHFSDUDPW3/+ W3+/ W3] VSHFSDUDPW3/+ W3+/ W3] & !4 W3/+W3+/W3]
& !4 W3/+W3+/W3]
VL[H[SUHVVLRQVVSHFLI\WUDQVLWLRQVWRIURPDQG]
VSHFSDUDPW W W] W] W] W] & !4 WWW]W]W]W]
VSHFSDUDP7 7 7] VSHFSDUDP7] 7] 7] & !4 777]7]7]7]
WZHOYHH[SUHVVLRQVVSHFLI\DOOWUDQVLWLRQGHOD\VH[SOLFLWO\
VSHFSDUDPW W W] W] W] W] W[ W[ W[ W[ W[] W][ F !4 WWW]W]W]W]
W[W[W[W[W[]W][
6SHFLI\LQJ[WUDQVLWLRQGHOD\V
,IWKH[WUDQVLWLRQGHOD\VDUHQRWH[SOLFLWO\VSHFLÀHGWKHFDOFXODWLRQRIGHOD\YDOXHVIRU[WUDQVLWLRQVLVEDVHGRQWKH
IROORZLQJWZRSHVVLPLVWLFUXOHV
³ 7UDQVLWLRQVIURPDNQRZQVWDWHWR[VKDOORFFXUDVTXLFNO\DVSRVVLEOH³WKDWLVWKHVKRUWHVWSRVVLEOHGHOD\
VKDOOEHXVHGIRUDQ\WUDQVLWLRQWR[
³ 7UDQVLWLRQVIURP[WRDNQRZQVWDWHVKDOOWDNHDVORQJDVSRVVLEOH³WKDWLVWKHORQJHVWSRVVLEOHGHOD\VKDOOEH
XVHGIRUDQ\WUDQVLWLRQIURP[
7DEOHSUHVHQWVWKHJHQHUDODOJRULWKPIRUFDOFXODWLQJGHOD\YDOXHVIRU[WUDQVLWLRQVDORQJZLWKVSHFLÀFH[DPSOHV
7KHIROORZLQJWZRJURXSVRI[WUDQVLWLRQVDUHUHSUHVHQWHGLQWKHWDEOH
D
7UDQVLWLRQIURPDNQRZQVWDWHVWR[V→[
E
7UDQVLWLRQIURP[WRDNQRZQVWDWHV[→V
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³&DOFXODWLQJGHOD\VIRU[WUDQVLWLRQV
;WUDQVLWLRQ
'HOD\YDOXH
*HQHUDODOJRULWKP
V→[
PLQLPXPV→RWKHUNQRZQVLJQDOV
[→V
PD[LPXPRWKHUNQRZQVLJQDOV→V
6SHFLÀFWUDQVLWLRQV
→[
PLQLPXP→]GHOD\→GHOD\
→[
PLQLPXP→]GHOD\→GHOD\
]→[
PLQLPXP]→GHOD\]→GHOD\
[→
PD[LPXP]→GHOD\→GHOD\
[→
PD[LPXP]→GHOD\→GHOD\
[→]
PD[LPXP→]GHOD\→]GHOD\
8VDJH& !4 →[
PLQLPXP →[
PLQLPXP ]→[
PLQLPXP [→
PD[LPXP [→
PD[LPXP [→]
PD[LPXP 0L[LQJPRGXOHSDWKGHOD\VDQGGLVWULEXWHGGHOD\V
,IDPRGXOHFRQWDLQVPRGXOHSDWKGHOD\VDQGGLVWULEXWHGGHOD\VGHOD\VRQSULPLWLYHLQVWDQFHVZLWKLQWKHPRGXOHWKH
ODUJHURIWKHWZRGHOD\VIRUHDFKSDWKVKDOOEHXVHG
([DPSOHV
([DPSOH³)LJXUHLOOXVWUDWHVDVLPSOHFLUFXLWPRGHOHGZLWKDFRPELQDWLRQRIGLVWULEXWHGGHOD\VDQGSDWKGHOD\V
RQO\WKH'LQSXWWR4RXWSXWSDWKLVLOOXVWUDWHG+HUHWKHGHOD\RQWKHPRGXOHSDWKIURPLQSXW'WRRXWSXW4 ZKLOHWKHVXPRIWKHGLVWULEXWHGGHOD\V 7KHUHIRUHDWUDQVLWLRQRQ4FDXVHGE\DWUDQVLWLRQRQ'ZLOORFFXU
WLPHXQLWVDIWHUWKHWUDQVLWLRQRQ'
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
Q
$
%
&
'
4
Q
PRGXOHSDWKGHOD\
GLVWULEXWHGGHOD\
)LJXUH³0RGXOHSDWKGHOD\VORQJHUWKDQGLVWULEXWHGGHOD\V
([DPSOH³,Q)LJXUHWKHGHOD\RQWKHPRGXOHSDWKIURP'WR4 EXWWKHGLVWULEXWHGGHOD\VDORQJWKDWPRG
XOHSDWKQRZDGGXSWR 7KHUHIRUHDQHYHQWRQ4FDXVHGE\DQHYHQWRQ'ZLOORFFXUWLPHXQLWVDIWHU
WKHHYHQWRQ'
$
%
Q
&
'
4
Q
PRGXOHSDWKGHOD\
GLVWULEXWHGGHOD\
)LJXUH³0RGXOHSDWKGHOD\VVKRUWHUWKDQGLVWULEXWHGGHOD\V
'ULYLQJZLUHGORJLF
0RGXOHSDWKRXWSXWQHWVVKDOOQRWKDYHPRUHWKDQRQHGULYHUZLWKLQWKHPRGXOH7KHUHIRUHZLUHGORJLFLVQRWDOORZHG
DWPRGXOHSDWKRXWSXWV
)LJXUHLOOXVWUDWHVDYLRODWLRQRIWKLVZLUHGRXWSXWUXOHDQGDPHWKRGRIDYRLGLQJWKHUXOHYLRODWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
(
)
(
)
6
*
+
6
*
+
D
E
)LJXUH³/HJDODQGLOOHJDOPRGXOHSDWKV
,Q)LJXUHDDQ\PRGXOHSDWKWR6LVLOOHJDOEHFDXVHWKHSDWKGHVWLQDWLRQKDVWZRGULYHUV
$VVXPLQJVLJQDO6LQ)LJXUHDLVDZLUHGDQGWKLVOLPLWDWLRQFDQEHFLUFXPYHQWHGE\UHSODFLQJZLUHGORJLF
ZLWK JDWHG ORJLF WR FUHDWH D VLQJOH GULYHU WR WKH RXWSXW )LJXUH E VKRZV KRZ DGGLQJ D WKLUG DQG JDWH³WKH
VKDGHGJDWH³VROYHVWKHSUREOHPIRUWKHPRGXOHLQ)LJXUHD
7KHH[DPSOHLQ)LJXUHLVDOVRLOOHJDO,QWKLVH[DPSOHZKHQWKHRXWSXWV4DQG5DUHZLUHGWRJHWKHULWFUHDWHVD
FRQGLWLRQZKHUHERWKSDWKVKDYHPXOWLSOHGULYHUVIURPZLWKLQWKHVDPHPRGXOH
$
%
4
&
'
5
)LJXUH³,,OOHJDOPRGXOHSDWKV
$OWKRXJKPXOWLSOHRXWSXWGULYHUVWRDSDWKGHVWLQDWLRQDUHSURKLELWHGLQVLGHWKHVDPHPRGXOHWKH\DUHDOORZHGRXWVLGH
WKHPRGXOH7KHH[DPSOHLQ)LJXUHLVOHJDOVLQFH4DQG5HDFKKDYHRQO\RQHGULYHUZLWKLQWKHPRGXOHLQZKLFK
WKHPRGXOHSDWKVDUHVSHFLÀHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$
%
4
&
'
(
)
5
*
+
)LJXUH³/HJDOPRGXOHSDWKV
&RQWUROOLQJSXOVHVRQPRGXOHSDWKVZLWK3$7+38/6(
$SXOVHLVPDGHXSRIWZRVFKHGXOHGWUDQVLWLRQVRQDPRGXOHSDWKGHVWLQDWLRQWKDWRFFXULQDVKRUWHUSHULRGRIWLPH
WKDQWKHGHOD\VSHFLÀHGIRUWKDWPRGXOHSDWK%\GHIDXOWSXOVHVRQDSDWKGHVWLQDWLRQDUHUHMHFWHG7KDWLVRQO\WUDQ
VLWLRQVWKDWDUHWKHVDPHDVRUORQJHUWKDQWKHPRGXOHSDWKGHOD\ZLOOSURSDJDWHWRWKHSDWKGHVWLQDWLRQ7KLVLVDQDOR
JRXVWRWKHLQHUWLDOGHOD\PRGHORISXOVHSURSDJDWLRQ
$VSHFLDOVSHFSDUDP3$7+38/6(LVXVHGWRVSHFLI\DUDQJHRISXOVHZLGWKVWKDWZLOOSURSDJDWHWRWKHSDWKGHVWL
QDWLRQ7KHIROORZLQJSXOVHZLGWKUDQJHVDUHVSHFLÀHGXVLQJ3$7+38/6(
³ $SXOVHZLGWKUDQJHIRUZKLFKDSXOVHVKDOOEHUHMHFWHG
³ $SXOVHZLGWKUDQJHIRUZKLFKDSXOVHVKDOOEHDOORZHGWRSURSDJDWHWRWKHSDWKGHVWLQDWLRQ
³ $SXOVHZLGWKUDQJHIRUZKLFKDSXOVHVKDOOJHQHUDWHDORJLF[RQWKHSDWKGHVWLQDWLRQ
7KHV\QWD[IRUVSHFLI\LQJSXOVHFRQWUROUDQJHVLVJLYHQLQ6\QWD[
SXOVHBFRQWUROBVSHFSDUDP
3$7+38/6( UHMHFWBOLPLWBYDOXH>HUURUBOLPLWBYDOXH@
_3$7+38/6(VSHFLI\BLQSXWBWHUPLQDOBGHVFULSWRUVSHFLI\BRXWSXWBWHUPLQDOBGHVFULSWRU
UHMHFWBOLPLWBYDOXH>HUURUBOLPLWBYDOXH@
OLPLWBYDOXH FRQVWDQWBPLQW\SPD[BH[SUHVVLRQ
6\QWD[³6\QWD[IRU3$7+38/6(SXOVHFRQWURO
7KHUHMHFWOLPLWYDOXHGHÀQHVDUHMHFWOLPLWIRUWKHSXOVHFRQWUROUDQJH$SXOVHWKDWLVOHVVWKDQWKHUHMHFWOLPLWVKDOO
QRWSURSDJDWHWRWKHPRGXOHSDWKGHVWLQDWLRQ$Q\SXOVHWKDWLVJUHDWHUWKDQWKHUHMHFWOLPLWVKDOOSURSDJDWHWRWKHSDWK
GHVWLQDWLRQDVGHWHUPLQHGE\WKHHUURUOLPLWYDOXH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHHUURUOLPLWYDOXHGHÀQHVDQHUURUOLPLWIRUWKHSXOVHFRQWUROUDQJH$SXOVHWKDWLVOHVVWKDQWKHHUURUOLPLWEXW
JUHDWHUWKDQRUHTXDOWRWKHUHMHFWOLPLWVKDOOJHQHUDWHDORJLF[RQWKHSDWKGHVWLQDWLRQ$Q\SXOVHWKDWLVJUHDWHUWKDQ
WKHHUURUOLPLWVKDOOSURSDJDWHWRWKHSDWKGHVWLQDWLRQ
,IRQO\WKHUHMHFWOLPLWYDOXHLVVSHFLÀHGWKDWYDOXHVKDOODSSO\WRERWKWKHUHMHFWOLPLWDQGWKHHUURUOLPLW
7KHUHMHFWOLPLWDQGHUURUOLPLWPD\EHVSHFLÀHGIRUDVSHFLÀFPRGXOHSDWK:KHQQRPRGXOHSDWKLVVSHFLÀHGWKHQ
WKH UHMHFW OLPLW DQG HUURU OLPLW VKDOO DSSO\ WR DOO PRGXOH SDWKV GHÀQHG LQ D PRGXOH ,I ERWK SDWKVSHFLÀF 3$7+
38/6(VSHFSDUDPVDQGDQRQSDWKVSHFLÀF3$7+38/6(VSHFSDUDPDSSHDULQWKHVDPHPRGXOHWKHQWKHSDWK
VSHFLÀFVSHFSDUDPVVKDOOWDNHSUHFHGHQFHIRUWKHVSHFLÀHGSDWKV
7KHPRGXOHSDWKLQSXWWHUPLQDOVDQGRXWSXWWHUPLQDOVVKDOOFRQIRUPWRWKHUXOHVIRUPRGXOHSDWKLQSXWVDQGRXWSXWV
ZLWKWKHIROORZLQJUHVWULFWLRQWKHWHUPLQDOVPD\QRWEHDELWVHOHFWRUSDUWVHOHFWRIDYHFWRU
,IDPRGXOHSDWKGHFODUDWLRQGHFODUHVPXOWLSOHSDWKVWKHQWKH3$7+38/6(VSHFSDUDPVKDOORQO\EHVSHFLÀHGIRUWKH
ÀUVWSDWKLQSXWWHUPLQDODQGWKHÀUVWSDWKRXWSXWWHUPLQDO7KHUHMHFWOLPLWDQGHUURUOLPLWVSHFLÀHGVKDOODSSO\WRDOO
RWKHUSDWKVLQWKHPXOWLSOHSDWKGHFODUDWLRQ
([DPSOH
,QWKHIROORZLQJH[DPSOHWKHSDWKFON !TDFTXLUHVDUHMHFWOLPLWRIDQGDQHUURUOLPLWRIDVGHÀQHGE\WKH
ÀUVW3$7+38/6(GHFODUDWLRQ7KHSDWKVFOU!TDQGSUH!TUHFHLYHDUHMHFWOLPLWRIDQGDQHUURUOLPLWRI
DVVSHFLÀHGE\WKHVHFRQG3$7+38/6(GHFODUDWLRQ7KHSDWKGDWD !TLVQRWH[SOLFLWO\GHÀQHGLQDQ\RIWKH
3$7+38/6(GHFODUDWLRQVDQGVRLWDFTXLUHVUHMHFWDQGHUURUOLPLWRIDVGHÀQHGE\WKHODVW3$7+38/6(GHFOD
UDWLRQ
VSHFLI\
FON !T GDWD !T FOUSUH!T VSHFSDUDP
3$7+38/6(FONT 3$7+38/6(FOUT 3$7+38/6( HQGVSHFLI\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
6\VWHPWDVNVDQGIXQFWLRQV
7KLVVHFWLRQGHVFULEHVV\VWHPWDVNVDQGIXQFWLRQVWKDWDUHFRQVLGHUHGSDUWRIWKH9HULORJ+'/7KHVHV\VWHPWDVNVDQG
IXQFWLRQVDUHGLYLGHGLQWRWHQFDWHJRULHVDVIROORZV
'LVSOD\WDVNV
GLVSOD\
GLVSOD\E
GLVSOD\K
GLVSOD\R
PRQLWRU
PRQLWRUE
PRQLWRUK
PRQLWRUR
PRQLWRURII
>@
VWUREH
VWUREHE
VWUREHK
VWUREHR
ZULWH
ZULWHE
ZULWHK
ZULWHR
PRQLWRURQ
)LOH,2WDVNV
IFORVH
IGLVSOD\
IGLVSOD\E
IGLVSOD\K
IGLVSOD\R
IPRQLWRU
IPRQLWRUE
IPRQLWRUK
IPRQLWRUR
UHDGPHPE
>@
IRSHQ
IVWUREH
IVWUREHE
IVWUREHK
IVWUREHR
IZULWH
IZULWHE
IZULWHK
IZULWHR
UHDGPHPK
7LPHVFDOHWDVNV
SULQWWLPHVFDOH
>@
WLPHIRUPDW
6LPXODWLRQFRQWUROWDVNV
ÀQLVK
VWRS
7LPLQJFKHFNWDVNV
KROG
SHULRG
VHWXS
VNHZ
>@
QRFKDQJH
UHFRYHU\
VHWXSKROG
ZLGWK
>@
3/$PRGHOLQJWDVNV
DV\QFDQGDUUD\
DV\QFQDQGDUUD\
DV\QFRUDUUD\
DV\QFQRUDUUD\
DV\QFDQGDUUD\
DV\QFQDQGDUUD\
DV\QFRUDUUD\
DV\QFQRUDUUD\
>@
V\QFDQGSODQH
V\QFQDQGSODQH
V\QFRUSODQH
V\QFQRUSODQH
V\QFDQGSODQH
V\QFQDQGSODQH
V\QFRUSODQH
V\QFQRUSODQH
6WRFKDVWLFDQDO\VLVWDVNV
TBLQLWLDOL]H
TBDGG
TBUHPRYH
TBIXOO
TBH[DP
UDQGRP
>@
6LPXODWLRQWLPHIXQFWLRQV
UHDOWLPH
VWLPH
WLPH
>@
&RQYHUVLRQIXQFWLRQVIRUUHDOV
ELWVWRUHDO
UHDOWRELWV
LWRU
UWRL
>@
3UREDELOLVWLFGLVWULEXWLRQIXQFWLRQV >@
GLVWBFKLBVTXDUH
GLVWBHUODQJ
GLVWBH[SRQHQWLDO
GLVWBQRUPDO
GLVWBSRLVVRQ
GLVWBW
GLVWBXQLIRUP
7KHVHXWLOLW\WDVNVDQGIXQFWLRQVSURYLGHVRPHEURDGO\XVHIXOFDSDELOLWLHV7KHIROORZLQJFODXVHVGHVFULEHWKHEHKDY
LRURIWKHVHWDVNVDQGIXQFWLRQV$GGLWLRQDOWDVNVIRUYDOXHFKDQJHGXPS9&'DUHGHVFULEHGLQ6HFWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
'LVSOD\V\VWHPWDVNV
7KHGLVSOD\JURXSRIV\VWHPWDVNVDUHGLYLGHGLQWRWKUHHFDWHJRULHVWKHGLVSOD\DQGZULWHWDVNVVWUREHGPRQLWRULQJ
WDVNVDQGFRQWLQXRXVPRQLWRULQJWDVNV
7KHGLVSOD\DQGZULWHWDVNV
GLVSOD\BWDVNV GLVSOD\BWDVNBQDPHOLVWBRIBDUJXPHQWV
GLVSOD\BWDVNBQDPH
GLVSOD\_GLVSOD\E_GLVSOD\R_GLVSOD\K
_ZULWH_ZULWHE_ZULWHR_ZULWHK
6\QWD[³6\QWD[IRUGLVSOD\DQGZULWHV\VWHPWDVNV
7KHVHDUHWKHPDLQV\VWHPWDVNURXWLQHVIRUGLVSOD\LQJLQIRUPDWLRQ7KHWZRVHWVRIWDVNVDUHLGHQWLFDOH[FHSWWKDW
GLVSOD\DXWRPDWLFDOO\DGGVDQHZOLQHFKDUDFWHUWRWKHHQGRILWVRXWSXWZKHUHDVWKHZULWHWDVNGRHVQRW
7KH GLVSOD\DQG ZULWHWDVNVGLVSOD\WKHLUDUJXPHQWVLQWKHVDPHRUGHUDVWKH\DSSHDULQWKHDUJXPHQWOLVW(DFK
DUJXPHQWFDQEHDTXRWHGVWULQJDQH[SUHVVLRQWKDWUHWXUQVDYDOXHRUDQXOODUJXPHQW
7KHFRQWHQWVRIVWULQJDUJXPHQWVDUHRXWSXWOLWHUDOO\H[FHSWZKHQFHUWDLQHVFDSHVHTXHQFHVDUHLQVHUWHGWRGLVSOD\VSH
FLDOFKDUDFWHUVRUWRVSHFLI\WKHGLVSOD\IRUPDWIRUDVXEVHTXHQWH[SUHVVLRQ
(VFDSHVHTXHQFHVDUHLQVHUWHGLQWRDVWULQJLQWKUHHZD\V
³ 7KHVSHFLDOFKDUDFWHU?LQGLFDWHVWKDWWKHFKDUDFWHUWRIROORZLVDOLWHUDORUQRQSULQWDEOHFKDUDFWHUVHH7DEOH
³ 7KHVSHFLDOFKDUDFWHU LQGLFDWHVWKDWWKHQH[WFKDUDFWHUVKRXOGEHLQWHUSUHWHGDVDIRUPDWVSHFLÀFDWLRQWKDW
HVWDEOLVKHVWKHGLVSOD\IRUPDWIRUDVXEVHTXHQWH[SUHVVLRQDUJXPHQWVHH7DEOH)RUHDFK FKDUDFWHU
WKDWDSSHDUVLQDVWULQJDFRUUHVSRQGLQJH[SUHVVLRQDUJXPHQWVKDOOEHVXSSOLHGDIWHUWKHVWULQJ
³ 7KHVSHFLDOFKDUDFWHUVWULQJLQGLFDWHVWKHGLVSOD\RIWKHSHUFHQWVLJQFKDUDFWHUVHH7DEOH
$Q\QXOODUJXPHQWSURGXFHVDVLQJOHVSDFHFKDUDFWHULQWKHGLVSOD\$QXOODUJXPHQWLVFKDUDFWHUL]HGE\WZRDGMDFHQW
FRPPDVLQWKHDUJXPHQWOLVW
7KHGLVSOD\WDVNZKHQLQYRNHGZLWKRXWDUJXPHQWVVLPSO\SULQWVDQHZOLQHFKDUDFWHU$ZULWHWDVNVXSSOLHGZLWK
RXWSDUDPHWHUVSULQWVQRWKLQJDWDOO
(VFDSHVHTXHQFHVIRUVSHFLDOFKDUDFWHUV
7KH HVFDSH VHTXHQFHV JLYHQ LQ 7DEOH ZKHQ LQFOXGHG LQ D VWULQJ DUJXPHQW FDXVH VSHFLDO FKDUDFWHUV WR EH
GLVSOD\HG
7DEOH³(VFDSHVHTXHQFHVIRUSULQWLQJVSHFLDOFKDUDFWHUV
6HFWLRQ
?Q
7KHQHZOLQHFKDUDFWHU
?W
7KHWDEFKDUDFWHU
??
7KH?FKDUDFWHU
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³(VFDSHVHTXHQFHVIRUSULQWLQJVSHFLDOFKDUDFWHUVFRQWLQXHG
?
7KHFKDUDFWHU
?GGG
$FKDUDFWHUVSHFLÀHGE\WRRFWDOGLJLWV
7KHFKDUDFWHU
([DPSOH
PRGXOHGLVS
LQLWLDOEHJLQ
GLVSOD\???W???Q??
HQG
HQGPRGXOH
??
6
)RUPDWVSHFLÀFDWLRQV
7DEOHVKRZVWKHHVFDSHVHTXHQFHVXVHGIRUIRUPDWVSHFLÀFDWLRQV(DFKHVFDSHVHTXHQFHZKHQLQFOXGHGLQD
VWULQJ DUJXPHQW VSHFLÀHV WKH GLVSOD\ IRUPDW IRU D VXEVHTXHQW H[SUHVVLRQ )RU HDFK FKDUDFWHU H[FHSW P WKDW
DSSHDUVLQDVWULQJDFRUUHVSRQGLQJH[SUHVVLRQVKDOOIROORZWKHVWULQJLQWKHDUJXPHQWOLVW7KHYDOXHRIWKHH[SUHVVLRQ
UHSODFHVWKHIRUPDWVSHFLÀFDWLRQZKHQWKHVWULQJLVGLVSOD\HG
$Q\H[SUHVVLRQDUJXPHQWWKDWKDVQRFRUUHVSRQGLQJIRUPDWVSHFLÀFDWLRQLVGLVSOD\HGXVLQJWKHGHIDXOWGHFLPDOIRU
PDWLQ GLVSOD\DQG ZULWHELQDU\IRUPDWLQ GLVSOD\EDQG ZULWHERFWDOIRUPDWLQ GLVSOD\RDQG ZULWHRDQG
KH[DGHFLPDOIRUPDWLQGLVSOD\KDQGZULWHK
7DEOH³(VFDSHVHTXHQFHVIRUIRUPDWVSHFLÀFDWLRQV
KRU+
'LVSOD\LQKH[DGHFLPDOIRUPDW
GRU'
'LVSOD\LQGHFLPDOIRUPDW
RRU2
'LVSOD\LQRFWDOIRUPDW
ERU%
'LVSOD\LQELQDU\IRUPDW
FRU&
'LVSOD\LQ$6&,,FKDUDFWHUIRUPDW
YRU9
'LVSOD\QHWVLJQDOVWUHQJWK
PRU0
'LVSOD\KLHUDUFKLFDOQDPH
VRU6
'LVSOD\DVDVWULQJ
WRU7
'LVSOD\LQFXUUHQWWLPHIRUPDW
7KHIRUPDWVSHFLÀFDWLRQVLQ7DEOHDUHXVHGZLWKUHDOQXPEHUVDQGKDYHWKHIXOOIRUPDWWLQJFDSDELOLWLHVDYDLODEOH
LQWKH&ODQJXDJH)RUH[DPSOHWKHIRUPDWVSHFLÀFDWLRQJVSHFLÀHVDPLQLPXPÀHOGZLGWKRIZLWKIUDF
WLRQDOGLJLWV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7DEOH³)RUPDWVSHFLÀFDWLRQVIRUUHDOQXPEHUV
HRU(
'LVSOD\¶UHDO·LQDQH[SRQHQWLDOIRUPDW
IRU)
'LVSOD\¶UHDO·LQDGHFLPDOIRUPDW
JRU*
'LVSOD\¶UHDO·LQH[SRQHQWLDORUGHFLPDOIRUPDWZKLFK
HYHUIRUPDWUHVXOWVLQWKHVKRUWHUSULQWHGRXWSXW
7KHQHWVLJQDOVWUHQJWKKLHUDUFKLFDOQDPHDQGVWULQJIRUPDWVSHFLÀFDWLRQVDUHGHVFULEHGLQWKURXJK
7KHWIRUPDWVSHFLÀFDWLRQZRUNVZLWKWKHWLPHIRUPDWV\VWHPWDVNWRVSHFLI\DXQLIRUPWLPHXQLWWLPHSUHFLVLRQ
DQGIRUPDWIRUUHSRUWLQJWLPLQJLQIRUPDWLRQIURPYDULRXVPRGXOHVWKDWXVHGLIIHUHQWWLPHXQLWVDQGSUHFLVLRQV7KH
WLPHIRUPDWWDVNLVGHVFULEHGLQ
([DPSOH
PRGXOHGLVS
UHJ>@UYDO
SXOOGRZQSG
LQLWLDOEHJLQ
UYDO GLVSOD\UYDO KKH[GGHFLPDOUYDOUYDO
GLVSOD\UYDO RRFWDO?QUYDO EELQUYDOUYDO
GLVSOD\UYDOKDVFDVFLLFKDUDFWHUYDOXHUYDO
GLVSOD\SGVWUHQJWKYDOXHLVYSG
GLVSOD\FXUUHQWVFRSHLVP
GLVSOD\VLVDVFLLYDOXHIRU
GLVSOD\VLPXODWLRQWLPHLVWWLPH
HQG
HQGPRGXOH
UYDO KH[GHFLPDO
UYDO RFWDO
UYDO ELQ
UYDOKDVHDVFLLFKDUDFWHUYDOXH
SGVWUHQJWKYDOXHLV6W;
FXUUHQWVFRSHLVGLVS
HLVDVFLLYDOXHIRU
VLPXODWLRQWLPHLV
6L]HRIGLVSOD\HGGDWD
)RUH[SUHVVLRQDUJXPHQWVWKHYDOXHVZULWWHQWRWKHRXWSXWÀOHRUWHUPLQDODUHVL]HGDXWRPDWLFDOO\
)RUH[DPSOHWKHUHVXOWRIDELWH[SUHVVLRQZRXOGEHDOORFDWHGWKUHHFKDUDFWHUVZKHQGLVSOD\HGLQKH[DGHFLPDOIRU
PDWDQGIRXUFKDUDFWHUVZKHQGLVSOD\HGLQGHFLPDOIRUPDWVLQFHWKHODUJHVWSRVVLEOHYDOXHIRUWKHH[SUHVVLRQLV)))
KH[DGHFLPDODQGGHFLPDO
:KHQGLVSOD\LQJGHFLPDOYDOXHVOHDGLQJ]HURVDUHVXSSUHVVHGDQGUHSODFHGE\VSDFHV,QRWKHUUDGLFHVOHDGLQJ]HURV
DUHDOZD\VGLVSOD\HG
7KHDXWRPDWLFVL]LQJRIGLVSOD\HGGDWDPD\EHRYHUULGGHQE\LQVHUWLQJD]HUREHWZHHQWKHFKDUDFWHUDQGWKHOHWWHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WKDWLQGLFDWHVWKHUDGL[DVVKRZQLQWKHIROORZLQJH[DPSOH
GLVSOD\G KD KGDWDDGGU
([DPSOH
PRGXOHSULQWYDO
UHJ>@U
LQLWLDOEHJLQ
U GLVSOD\3ULQWLQJZLWKPD[LPXPVL]HGKUU
GLVSOD\3ULQWLQJZLWKPLQLPXPVL]HGKUU
HQG
HQGPRGXOH
3ULQWLQJZLWKPD[LPXPVL]HD
3ULQWLQJZLWKPLQLPXPVL]HD
,QWKLVH[DPSOHWKHUHVXOWRIDELWH[SUHVVLRQLVGLVSOD\HG7KHÀUVWFDOOWRGLVSOD\XVHVWKHVWDQGDUGIRUPDWVSHF
LÀHUV\QWD[DQGSURGXFHVUHVXOWVUHTXLULQJIRXUDQGWKUHHFROXPQVIRUWKHGHFLPDODQGKH[DGHFLPDOUDGLFHVUHVSHF
WLYHO\7KHVHFRQG GLVSOD\FDOOXVHVWKH IRUPRIWKHIRUPDWVSHFLÀHUV\QWD[DQGSURGXFHVUHVXOWVUHTXLULQJWZR
FROXPQVDQGRQHFROXPQUHVSHFWLYHO\
8QNQRZQDQGKLJKLPSHGDQFHYDOXHV
:KHQWKHUHVXOWRIDQH[SUHVVLRQFRQWDLQVDQXQNQRZQRUKLJKLPSHGDQFHYDOXHWKHIROORZLQJUXOHVDSSO\WRGLVSOD\
LQJWKDWYDOXH
,QGHFLPDOGIRUPDW
³ ,IDOOELWVDUHDWWKHXQNQRZQYDOXHDVLQJOHORZHUFDVH´[µFKDUDFWHULVGLVSOD\HG
³ ,IDOOELWVDUHDWWKHKLJKLPSHGDQFHYDOXHDVLQJOHORZHUFDVH´]µFKDUDFWHULVGLVSOD\HG
³ ,IVRPHEXWQRWDOOELWVDUHDWWKHXQNQRZQYDOXHWKHXSSHUFDVH´;µFKDUDFWHULVGLVSOD\HG
³ ,IVRPHEXWQRWDOOELWVDUHDWWKHKLJKLPSHGDQFHYDOXHWKHXSSHUFDVH´=µFKDUDFWHULVGLVSOD\HG
³ 'HFLPDOQXPHUDOVDOZD\VDSSHDUULJKWMXVWLÀHGLQDÀ[HGZLGWKÀHOG
,QKH[DGHFLPDOKDQGRFWDORIRUPDWV
³ (DFKJURXSRIELWVLVUHSUHVHQWHGDVDVLQJOHKH[DGHFLPDOGLJLWHDFKJURXSRIELWVLVUHSUHVHQWHGDVDVLQ
JOHRFWDOGLJLW
³ ,IDOOELWVLQDJURXSDUHDWWKHXQNQRZQYDOXHDORZHUFDVH´[µLVGLVSOD\HGIRUWKDWGLJLW
³ ,IDOOELWVLQDJURXSDUHDWDKLJKLPSHGDQFHVWDWHDORZHUFDVH´]µLVSULQWHGIRUWKDWGLJLW
³ ,IVRPHEXWQRWDOOELWVLQDJURXSDUHXQNQRZQDQXSSHUFDVH´;µLVGLVSOD\HGIRUWKDWGLJLW
³ ,IVRPHEXWQRWDOOELWVLQDJURXSDUHDWDKLJKLPSHGDQFHVWDWHWKHQDQXSSHUFDVH´=µLVGLVSOD\HGIRUWKDW
GLJLW
,QELQDU\EIRUPDWHDFKELWLVSULQWHGVHSDUDWHO\XVLQJWKHFKDUDFWHUV[DQG]
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([DPSOH
67$7(0(175(68/7
GLVSOD\G·E[[
GLVSOD\K·E[[[;D
GLVSOD\KR·E[[[[
·E[[[[;;;[;
6WUHQJWKIRUPDW
7KHYIRUPDWVSHFLÀFDWLRQLVXVHGWRGLVSOD\WKHVWUHQJWKRIVFDODUQHWV)RUHDFKYVSHFLÀFDWLRQWKDWDSSHDUVLQD
VWULQJDFRUUHVSRQGLQJVFDODUUHIHUHQFHVKDOOIROORZWKHVWULQJLQWKHDUJXPHQWOLVW
7KHVWUHQJWKRIDVFDODUQHWLVUHSRUWHGLQDWKUHHFKDUDFWHUIRUPDW7KHÀUVWWZRFKDUDFWHUVLQGLFDWHWKHVWUHQJWK7KH
WKLUGFKDUDFWHULQGLFDWHVWKHFXUUHQWORJLFYDOXHRIWKHVFDODUDQGPD\EHDQ\RQHRIWKHYDOXHVJLYHQLQ7DEOH
7DEOH³/RJLFYDOXHFRPSRQHQWRIVWUHQJWKIRUPDW
)RUDORJLFYDOXH
)RUDORJLFYDOXH
;
)RUDQXQNQRZQYDOXH
=
)RUDKLJKLPSHGDQFHYDOXH
/
)RUDORJLFRUKLJKLPSHGDQFHYDOXH
+
)RUDORJLFRUKLJKLPSHGDQFHYDOXH
7KHÀUVWWZRFKDUDFWHUV³WKHVWUHQJWKFKDUDFWHUV³DUHHLWKHUDWZROHWWHUPQHPRQLFRUDSDLURIGHFLPDOGLJLWV8VX
DOO\DPQHPRQLFLVXVHGWRLQGLFDWHVWUHQJWKLQIRUPDWLRQKRZHYHULQOHVVW\SLFDOFDVHVDSDLURIGHFLPDOGLJLWVPD\
EHXVHGWRLQGLFDWHDUDQJHRIVWUHQJWKOHYHOV7DEOHVKRZVWKHPQHPRQLFVXVHGWRUHSUHVHQWWKHYDULRXVVWUHQJWK
OHYHOV
7DEOH³0QHPRQLFVIRUVWUHQJWKOHYHOV
0QHPRQLF
6HFWLRQ
6WUHQJWKQDPH
6WUHQJWKOHYHO
6X
6XSSO\GULYH
6W
6WURQJGULYH
3X
3XOOGULYH
/D
/DUJHFDSDFLWRU
:H
:HDNGULYH
0H
0HGLXPFDSDFLWRU
6P
6PDOOFDSDFLWRU
+L
+LJKLPSHGDQFH
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
1RWHWKDWWKHUHDUHIRXUGULYLQJVWUHQJWKVDQGWKUHHFKDUJHVWRUDJHVWUHQJWKV7KHGULYLQJVWUHQJWKVDUHDVVRFLDWHGZLWK
JDWHRXWSXWVDQGFRQWLQXRXVDVVLJQPHQWRXWSXWV7KHFKDUJHVWRUDJHVWUHQJWKVDUHDVVRFLDWHGZLWKWKHWULUHJW\SHQHW
6HH6HFWLRQIRUVWUHQJWKPRGHOLQJ
)RUWKHORJLFYDOXHVDQGDPQHPRQLFLVXVHGZKHQWKHUHLVQRUDQJHRIVWUHQJWKVLQWKHVLJQDO2WKHUZLVHWKH
ORJLFYDOXHLVSUHFHGHGE\WZRGHFLPDOGLJLWVZKLFKLQGLFDWHWKHPD[LPXPDQGPLQLPXPVWUHQJWKOHYHOV
)RUWKHXQNQRZQYDOXHDPQHPRQLFLVXVHGZKHQERWKWKHDQGVWUHQJWKFRPSRQHQWVDUHDWWKHVDPHVWUHQJWK
OHYHO2WKHUZLVHWKHXQNQRZQYDOXH;LVSUHFHGHGE\WZRGHFLPDOGLJLWVZKLFKLQGLFDWHWKHDQGVWUHQJWKOHYHOV
UHVSHFWLYHO\
7KHKLJKLPSHGDQFHVWUHQJWKFDQQRWKDYHDNQRZQORJLFYDOXHWKHRQO\ORJLFYDOXHDOORZHGIRUWKLVOHYHOLV=
)RUWKHYDOXHV/DQG+DPQHPRQLFLVDOZD\VXVHGWRLQGLFDWHWKHVWUHQJWKOHYHO
([DPSOHV
DOZD\V
GLVSOD\WLPHJURXS EVLJQDOV YYY^VVV`VVV
7KHH[DPSOHEHORZVKRZVWKHRXWSXWWKDWPLJKWUHVXOWIURPVXFKDFDOOZKLOH7DEOHH[SODLQVWKHYDULRXVVWUHQJWK
IRUPDWVWKDWDSSHDULQWKHRXWSXW
JURXS
JURXS
JURXS
JURXS
JURXS
VLJQDOV
VLJQDOV
[]VLJQDOV
[[VLJQDOV
VLJQDOV
6W3X6W
3X3X6W
3X++L=
3X;6W;
0H6W6W
7DEOH³([SODQDWLRQRIVWUHQJWKIRUPDWV
6W
0HDQVDVWURQJGULYLQJYDOXH
3X
0HDQVDSXOOGULYLQJYDOXH
+L=
0HDQVWKHKLJKLPSHGDQFHVWDWH
0H
0HDQVDFKDUJHVWRUDJHRIPHGLXPFDSDFLWRUVWUHQJWK
6W;
0HDQVDVWURQJGULYLQJXQNQRZQYDOXH
3X+
0HDQVDSXOOGULYLQJVWUHQJWKRIRUKLJKLPSHGDQFHYDOXH
;
0HDQVDQXQNQRZQYDOXHZLWKDVWURQJGULYLQJFRPSRQHQW
DQGDSXOOGULYLQJFRPSRQHQW
0HDQVDQYDOXHZLWKDUDQJHRISRVVLEOHVWUHQJWKIURPSXOO
GULYLQJWRPHGLXPFDSDFLWRU
+LHUDUFKLFDOQDPHIRUPDW
7KHPIRUPDWVSHFLÀHUGRHVQRWDFFHSWDQDUJXPHQW,QVWHDGLWFDXVHVWKHGLVSOD\WDVNWRSULQWWKHKLHUDUFKLFDOQDPH
RIWKHPRGXOHWDVNIXQFWLRQRUQDPHGEORFNWKDWLQYRNHVWKHV\VWHPWDVNFRQWDLQLQJWKHIRUPDWVSHFLÀHU7KLVLVXVH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
IXOZKHQWKHUHDUHPDQ\LQVWDQFHVRIWKHPRGXOHWKDWFDOOVWKHV\VWHPWDVN2QHREYLRXVDSSOLFDWLRQLVWLPLQJFKHFN
PHVVDJHVLQDÁLSÁRSRUODWFKPRGXOHWKHPIRUPDWVSHFLÀHUZLOOSLQSRLQWWKHPRGXOHLQVWDQFHUHVSRQVLEOHIRUJHQ
HUDWLQJWKHWLPLQJFKHFNPHVVDJH
6WULQJIRUPDW
7KHVIRUPDWVSHFLÀHULVXVHGWRSULQW$6&,,FRGHVDVFKDUDFWHUV)RUHDFKVVSHFLÀFDWLRQWKDWDSSHDUVLQDVWULQJ
DFRUUHVSRQGLQJSDUDPHWHUVKDOOIROORZWKHVWULQJLQWKHDUJXPHQWOLVW7KHDVVRFLDWHGDUJXPHQWLVLQWHUSUHWHGDVD
VHTXHQFHRIELWKH[DGHFLPDO$6&,,FRGHVZLWKHDFKELWVUHSUHVHQWLQJDVLQJOHFKDUDFWHU,IWKHDUJXPHQWLVDYDUL
DEOHLWVYDOXHVKRXOGEHULJKWMXVWLÀHGVRWKDWWKHULJKWPRVWELWRIWKHYDOXHLVWKHOHDVWVLJQLÀFDQWELWRIWKHODVWFKDU
DFWHULQWKHVWULQJ1RWHUPLQDWLRQFKDUDFWHURUYDOXHLVUHTXLUHGDWWKHHQGRIDVWULQJDQGOHDGLQJ]HURVDUHQHYHU
SULQWHG
6WUREHGPRQLWRULQJ
VWUREHBWDVNV VWUREHBWDVNBQDPHOLVWBRIBDUJXPHQWV
VWUREHBWDVNBQDPH
VWUREH_VWUREHE_VWUREHR_VWUREHK
6\QWD[³6\QWD[IRUVWUREHV\VWHPWDVNV
7KHV\VWHPWDVNVWUREHSURYLGHVWKHDELOLW\WRGLVSOD\VLPXODWLRQGDWDDWDVHOHFWHGWLPH7KDWWLPHLVWKHHQGRIWKH
FXUUHQWVLPXODWLRQWLPHZKHQDOOWKHVLPXODWLRQHYHQWVWKDWKDYHRFFXUUHGIRUWKDWVLPXODWLRQWLPHMXVWEHIRUHVLPX
ODWLRQWLPHLVDGYDQFHG7KHDUJXPHQWVIRUWKLVWDVNDUHVSHFLÀHGLQH[DFWO\WKHVDPHPDQQHUDVIRUWKHGLVSOD\V\V
WHPWDVN³LQFOXGLQJWKHXVHRIHVFDSHVHTXHQFHVIRUVSHFLDOFKDUDFWHUVDQGIRUPDWVSHFLÀFDWLRQVVHH
([DPSOH
IRUHYHU#QHJHGJHFORFN
VWUREH$WWLPHGGDWDLVKWLPHGDWD
,QWKLVH[DPSOHVWUREHZLOOZULWHWKHWLPHDQGGDWDLQIRUPDWLRQWRWKHVWDQGDUGRXWSXWDQGWKHORJÀOHDWHDFKQHJD
WLYHHGJHRIWKHFORFN7KHDFWLRQZLOORFFXUMXVWEHIRUHVLPXODWLRQWLPHLVDGYDQFHGDQGDIWHUDOORWKHUHYHQWVDWWKDW
WLPHKDYHRFFXUUHGVRWKDWWKHGDWDZULWWHQLVVXUHWREHWKHFRUUHFWGDWDIRUWKDWVLPXODWLRQWLPH
&RQWLQXRXVPRQLWRULQJ
PRQLWRUBWDVNV PRQLWRUBWDVNBQDPH>OLVWBRIBDUJXPHQWV@
_PRQLWRURQ
_PRQLWRURII
PRQLWRUBWDVNBQDPH
PRQLWRU_PRQLWRUE_PRQLWRUR_PRQLWRUK
6\QWD[³6\QWD[IRUPRQLWRUV\VWHPWDVNV
7KHPRQLWRUWDVNSURYLGHVWKHDELOLW\WRPRQLWRUDQGGLVSOD\WKHYDOXHVRIDQ\YDULDEOHVRUH[SUHVVLRQVVSHFLÀHGDV
DUJXPHQWVWRWKHWDVN7KHDUJXPHQWVIRUWKLVWDVNDUHVSHFLÀHGLQH[DFWO\WKHVDPHPDQQHUDVIRUWKHGLVSOD\V\VWHP
WDVN³LQFOXGLQJWKHXVHRIHVFDSHVHTXHQFHVIRUVSHFLDOFKDUDFWHUVDQGIRUPDWVSHFLÀFDWLRQVVHH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
:KHQDPRQLWRUWDVNLVLQYRNHGZLWKRQHRUPRUHDUJXPHQWVWKHVLPXODWRUVHWVXSDPHFKDQLVPZKHUHE\HDFKWLPH
DYDULDEOHRUDQH[SUHVVLRQLQWKHDUJXPHQWOLVWFKDQJHVYDOXH³ZLWKWKHH[FHSWLRQRIWKHWLPHVWLPHRUUHDOWLPH
V\VWHPIXQFWLRQV³WKHHQWLUHDUJXPHQWOLVWLVGLVSOD\HGDWWKHHQGRIWKHWLPHVWHSDVLIUHSRUWHGE\WKHGLVSOD\WDVN
,IWZRRUPRUHDUJXPHQWVFKDQJHYDOXHDWWKHVDPHWLPHRQO\RQHGLVSOD\LVSURGXFHGWKDWVKRZVWKHQHZYDOXHV
2QO\RQHPRQLWRUGLVSOD\OLVWFDQEHDFWLYHDWDQ\RQHWLPHKRZHYHUDQHZPRQLWRUWDVNZLWKDQHZGLVSOD\OLVW
PD\EHLVVXHGDQ\QXPEHURIWLPHVGXULQJVLPXODWLRQ
7KHPRQLWRURQDQGPRQLWRURIIWDVNVFRQWURODPRQLWRUÁDJWKDWHQDEOHVDQGGLVDEOHVWKHPRQLWRULQJ8VHPRQL
WRURIIWRWXUQRIIWKHÁDJDQGGLVDEOHPRQLWRULQJ7KHPRQLWRURQV\VWHPWDVNFDQEHXVHGWRWXUQRQWKHÁDJVRWKDW
PRQLWRULQJLVHQDEOHGDQGWKHPRVWUHFHQWFDOOWRPRQLWRUFDQUHVXPHLWVGLVSOD\$FDOOWRPRQLWRURQVKDOOSUR
GXFHDGLVSOD\LPPHGLDWHO\DIWHULWLVLQYRNHGUHJDUGOHVVRIZKHWKHUDYDOXHFKDQJHKDVWDNHQSODFHWKLVLVXVHGWR
HVWDEOLVKWKHLQLWLDOYDOXHVDWWKHEHJLQQLQJRIDPRQLWRULQJVHVVLRQ%\GHIDXOWWKHPRQLWRUÁDJLVWXUQHGRQDWWKH
EHJLQQLQJRIVLPXODWLRQ
)LOHLQSXWRXWSXWV\VWHPWDVNV
7KHV\VWHPWDVNVDQGIXQFWLRQVIRUÀOHEDVHGRSHUDWLRQVDUHGLYLGHGLQWRWKUHHFDWHJRULHV
³ 7DVNVWKDWRSHQDQGFORVHÀOHV
³ 7DVNVWKDWRXWSXWYDOXHVLQWRÀOHV
³ 7DVNVWKDWUHDGYDOXHVIURPÀOHVDQGORDGLQWRPHPRU\
2SHQLQJDQGFORVLQJÀOHV
ILOHBRSHQBIXQFWLRQ LQWHJHUPXOWLBFKDQQHOBGHVFULSWRU IRSHQILOHBQDPH
ILOHBFORVHBWDVN IFORVHPXOWLBFKDQQHOBGHVFULSWRU
6\QWD[³6\QWD[IRUIRSHQDQGIFORVHV\VWHPWDVNV
7KHIXQFWLRQIRSHQRSHQVWKHÀOHVSHFLÀHGDVDQDUJXPHQWDQGUHWXUQVDELWXQVLJQHGPXOWLFKDQQHOGHVFULSWRU
WKDWLVXQLTXHO\DVVRFLDWHGZLWKWKHÀOH,WUHWXUQVLIWKHÀOHFRXOGQRWEHRSHQHGIRUZULWLQJ
7KHPXOWLFKDQQHOGHVFULSWRUVKRXOGEHWKRXJKWRIDVDVHWRIÁDJVZKHUHHDFKÁDJUHSUHVHQWVDVLQJOHRXWSXWFKDQ
QHO7KHOHDVWVLJQLÀFDQWELWELWRIDPXOWLFKDQQHOGHVFULSWRUDOZD\VUHIHUVWRWKHVWDQGDUGRXWSXW7KHVWDQGDUG
RXWSXWLVDOVRFDOOHGFKDQQHO7KHRWKHUELWVUHIHUWRFKDQQHOVWKDWKDYHEHHQRSHQHGE\WKHIRSHQV\VWHPIXQFWLRQ
7KHÀUVWFDOOWRIRSHQRSHQVFKDQQHODQGUHWXUQVDPXOWLFKDQQHOGHVFULSWRUYDOXHRI³WKDWLVELWRIWKHGHVFULS
WRULVVHW$VHFRQGFDOOWRIRSHQRSHQVFKDQQHODQGUHWXUQVDYDOXHRI³WKDWLVRQO\ELWRIWKHGHVFULSWRULVVHW
6XEVHTXHQWFDOOVWRIRSHQRSHQFKDQQHOVDQGVRRQDQGUHWXUQYDOXHVRIDQGVRRQXSWRDPD[L
PXPRIRSHQFKDQQHOV7KXVDFKDQQHOQXPEHUFRUUHVSRQGVWRDQLQGLYLGXDOELWLQDPXOWLFKDQQHOGHVFULSWRU
7KHIFORVHV\VWHPWDVNFORVHVWKHFKDQQHOVVSHFLÀHGLQWKHPXOWLFKDQQHOGHVFULSWRUDQGGRHVQRWDOORZDQ\IXUWKHU
RXWSXWWRWKHFORVHGFKDQQHOV7KHIRSHQWDVNZLOOUHXVHFKDQQHOVWKDWKDYHEHHQFORVHG
127(³7KHQXPEHURIVLPXOWDQHRXVRXWSXWFKDQQHOVWKDWPD\EHDFWLYHDWDQ\RQHWLPHLVGHSHQGHQWRQWKHRSHUDWLQJV\VWHP
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
)LOHRXWSXWV\VWHPWDVNV
ILOHBRXWSXWBWDVNV ILOHBRXWSXWBWDVNBQDPHPXOWLBFKDQQHOBGHVFULSWRUOLVWBRIBDUJXPHQWV
ILOHBRXWSXWBWDVNBQDPH
IGLVSOD\_IGLVSOD\E_IGLVSOD\K_IGLVSOD\I
_IZULWH_IZULWHE_IZULWHK_IZULWHI
_IVWUREH_IVWUREHEE_IVWUREHK_IVWUREHI
_IPRQLWRU_IPRQLWRUE_IPRQLWRUK_IPRQLWRUI
6\QWD[³6\QWD[IRUILOHRXWSXWV\VWHPWDVNV
(DFKRIWKHIRXUIRUPDWWHGGLVSOD\WDVNV³GLVSOD\ZULWHPRQLWRUDQGVWUREH³KDVDFRXQWHUSDUWWKDWZULWHVWR
VSHFLÀF ÀOHV DV RSSRVHG WR WKH VWDQGDUG RXWSXW 7KHVH FRXQWHUSDUW WDVNV³IGLVSOD\ IZULWH IPRQLWRU DQG
IVWUREH³DFFHSWWKHVDPHW\SHRIDUJXPHQWVDVWKHWDVNVXSRQZKLFKWKH\DUHEDVHGZLWKRQHH[FHSWLRQ7KHÀUVW
SDUDPHWHUVKDOOEHDPXOWLFKDQQHOGHVFULSWRUWKDWLQGLFDWHVZKHUHWRGLUHFWWKHÀOHRXWSXW$PXOWLFKDQQHOGHVFULSWRULV
HLWKHUDYDULDEOHRUWKHUHVXOWRIDQH[SUHVVLRQWKDWWDNHVWKHIRUPRIDELWXQVLJQHGLQWHJHUYDOXH7KHYDOXHRIWKH
PXOWLFKDQQHOGHVFULSWRUGHWHUPLQHVWRZKLFKRSHQÀOHVWKHWDVNZLOOZULWH
7KHIVWUREHDQGIPRQLWRUV\VWHPWDVNVZRUNMXVWOLNHWKHLUFRXQWHUSDUWVVWUREHDQGPRQLWRUH[FHSWWKDWWKH\
ZULWHWRÀOHVXVLQJWKHPXOWLFKDQQHOGHVFULSWRUIRUFRQWURO8QOLNHPRQLWRUDQ\QXPEHURIIPRQLWRUWDVNVFDQEH
VHWXSWREHVLPXOWDQHRXVO\DFWLYH+RZHYHUWKHUHLVQRFRXQWHUSDUWWRPRQLWRURQDQGPRQLWRURIIWDVNV
([DPSOH
7KLV H[DPSOH VKRZV KRZ WR VHW XS PXOWLFKDQQHO GHVFULSWRUV ,Q WKLV H[DPSOH WKUHH GLIIHUHQW FKDQQHOV DUH RSHQHG
XVLQJWKHIRSHQIXQFWLRQ7KHWKUHHPXOWLFKDQQHOGHVFULSWRUVWKDWDUHUHWXUQHGE\WKHIXQFWLRQDUHWKHQFRPELQHGLQ
DELWZLVH RURSHUDWLRQDQGDVVLJQHGWRWKHLQWHJHUYDULDEOHPHVVDJHV7KHPHVVDJHVYDULDEOHFDQWKHQEH
XVHGDVWKHÀUVWSDUDPHWHULQDÀOHRXWSXWWDVNWRGLUHFWRXWSXWWRDOOWKUHHFKDQQHOVDWRQFH7RFUHDWHDGHVFULSWRUWKDW
GLUHFWVRXWSXWWRWKHVWDQGDUGRXWSXWDVZHOOWKHPHVVDJHVYDULDEOHLVDELWZLVHORJLFDORUZLWKWKHFRQVWDQW
ZKLFKHIIHFWLYHO\HQDEOHVFKDQQHO
LQWHJHU
PHVVDJHV
EURDGFDVW
FSXBFKDQQ
DOXBFKDQQPHPBFKDQQ
LQLWLDOEHJLQ
FSXBFKDQQ IRSHQFSXGDW
LIFSXBFKDQQ ILQLVK
DOXBFKDQQ IRSHQDOXGDW
LIDOXBFKDQQ ILQLVK
PHPBFKDQQ IRSHQPHPGDW
LIPHPBFKDQQ ILQLVK
PHVVDJHV FSXBFKDQQ_DOXBFKDQQ_PHPBFKDQQ
EURDGFDVWLQFOXGHVVWDQGDUGRXWSXW
EURDGFDVW _PHVVDJHV
HQG
HQGPRGXOH
7KHIROORZLQJÀOHRXWSXWWDVNVVKRZKRZWKHFKDQQHOVRSHQHGLQWKHSUHFHGLQJH[DPSOHPLJKWEHXVHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
IGLVSOD\EURDGFDVWV\VWHPUHVHWDWWLPHGWLPH
IGLVSOD\PHVVDJHV(UURURFFXUUHGRQDGGUHVVEXV
DWWLPHGDGGUHVV KWLPHDGGUHVV
IRUHYHU#SRVHGJHFORFN
IGLVSOD\DOXBFKDQQDFF KI KD KE KDFFIDE
/RDGLQJPHPRU\GDWDIURPDÀOH
ORDGBPHPRU\BWDVNV UHDGPHPEILOHBQDPHPHPRU\BQDPH>VWDUWBDGGU>ILQLVKBDGGU@@
_UHDGPHPKILOHBQDPHPHPRU\BQDPH>VWDUWBDGGU>ILQLVKBDGGU@@
6\QWD[³6\QWD[IRUPHPRU\ORDGV\VWHPWDVNV
7ZR V\VWHP WDVNV³UHDGPHPE DQG UHDGPHPK³UHDG DQG ORDG GDWD IURP D VSHFLÀHG WH[W ÀOH LQWR D VSHFLÀHG
PHPRU\(LWKHUWDVNPD\EHH[HFXWHGDWDQ\WLPHGXULQJVLPXODWLRQ7KHWH[WÀOHWREHUHDGVKDOOFRQWDLQRQO\WKHIRO
ORZLQJ
³ :KLWHVSDFHVSDFHVQHZOLQHVWDEVDQGIRUPIHHGV
³ &RPPHQWVERWKW\SHVRIFRPPHQWDUHDOORZHG
³ %LQDU\RUKH[DGHFLPDOQXPEHUV
7KH QXPEHUV VKDOO KDYH QHLWKHU WKH OHQJWK QRU WKH EDVH IRUPDW VSHFLÀHG )RU UHDGPHPE HDFK QXPEHU VKDOO EH
ELQDU\)RUUHDGPHPKWKHQXPEHUVVKDOOEHKH[DGHFLPDO7KHXQNQRZQYDOXH[RU;WKHKLJKLPSHGDQFHYDOXH
]RU=DQGWKHXQGHUVFRUHBFDQEHXVHGLQVSHFLI\LQJDQXPEHUDVLQD9HULORJ+'/VRXUFHGHVFULSWLRQ:KLWH
VSDFHDQGRUFRPPHQWVVKDOOEHXVHGWRVHSDUDWHWKHQXPEHUV
,QWKHIROORZLQJGLVFXVVLRQWKHWHUP´DGGUHVVµUHIHUVWRDQLQGH[LQWRWKHDUUD\WKDWPRGHOVWKHPHPRU\
$VWKHÀOHLVUHDGHDFKQXPEHUHQFRXQWHUHGLVDVVLJQHGWRDVXFFHVVLYHZRUGHOHPHQWRIWKHPHPRU\$GGUHVVLQJLV
FRQWUROOHGERWKE\VSHFLI\LQJVWDUWDQGRUÀQLVKDGGUHVVHVLQWKHV\VWHPWDVNLQYRFDWLRQDQGE\VSHFLI\LQJDGGUHVVHV
LQWKHGDWDÀOH
:KHQDGGUHVVHVDSSHDULQWKHGDWDÀOHWKHIRUPDWLVDQ´DWµFKDUDFWHU#IROORZHGE\DKH[DGHFLPDOQXPEHUDVIRO
ORZV
#KKK
%RWKXSSHUFDVHDQGORZHUFDVHGLJLWVDUHDOORZHGLQWKHQXPEHU1RZKLWHVSDFHLVDOORZHGEHWZHHQWKH#DQGWKH
QXPEHU$VPDQ\DGGUHVVVSHFLÀFDWLRQVDVQHHGHGZLWKLQWKHGDWDÀOHPD\EHXVHG:KHQWKHV\VWHPWDVNHQFRXQWHUV
DQDGGUHVVVSHFLÀFDWLRQLWORDGVVXEVHTXHQWGDWDVWDUWLQJDWWKDWPHPRU\DGGUHVV
,IQRDGGUHVVLQJLQIRUPDWLRQLVVSHFLÀHGZLWKLQWKHV\VWHPWDVNDQGQRDGGUHVVVSHFLÀFDWLRQVDSSHDUZLWKLQWKHGDWD
ÀOHWKHQWKHGHIDXOWVWDUWDGGUHVVLVWKHOHIWKDQGDGGUHVVJLYHQLQWKHGHFODUDWLRQRIWKHPHPRU\&RQVHFXWLYHZRUGV
DUHORDGHGXQWLOHLWKHUWKHPHPRU\LVIXOORUWKHGDWDÀOHLVFRPSOHWHO\UHDG,IWKHVWDUWDGGUHVVLVVSHFLÀHGLQWKHWDVN
ZLWKRXW WKH ÀQLVK DGGUHVV WKHQ ORDGLQJ VWDUWV DW WKH VSHFLÀHG VWDUW DGGUHVV DQG FRQWLQXHV WRZDUGV WKH ULJKWKDQG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
DGGUHVVJLYHQLQWKHGHFODUDWLRQRIWKHPHPRU\
,IERWKVWDUWDQGÀQLVKDGGUHVVHVDUHVSHFLÀHGDVSDUDPHWHUVWRWKHWDVNWKHQORDGLQJEHJLQVDWWKHVWDUWDGGUHVVDQG
FRQWLQXHVWRZDUGWKHÀQLVKDGGUHVVUHJDUGOHVVRIKRZWKHDGGUHVVHVDUHVSHFLÀHGLQWKHPHPRU\GHFODUDWLRQ
:KHQDGGUHVVLQJLQIRUPDWLRQLVVSHFLÀHGERWKLQWKHV\VWHPWDVNDQGLQWKHGDWDÀOHWKHDGGUHVVHVLQWKHGDWDÀOH
VKDOOEHZLWKLQWKHDGGUHVVUDQJHVSHFLÀHGE\WKHV\VWHPWDVNSDUDPHWHUVRWKHUZLVHDQHUURUPHVVDJHLVLVVXHGDQG
WKHORDGRSHUDWLRQLVWHUPLQDWHG
$ZDUQLQJPHVVDJHLVLVVXHGLIWKHQXPEHURIGDWDZRUGVLQWKHÀOHGLIIHUVIURPWKHQXPEHURIZRUGVLQWKHUDQJH
LPSOLHGE\WKHVWDUWWKURXJKÀQLVKDGGUHVVHV
([DPSOH
UHJ>@PHP>@
*LYHQWKLVGHFODUDWLRQHDFKRIWKHIROORZLQJVWDWHPHQWVZLOOORDGGDWDLQWRPHPLQDGLIIHUHQWPDQQHU
LQLWLDOUHDGPHPKPHPGDWDPHP
LQLWLDOUHDGPHPKPHPGDWDPHP
LQLWLDOUHDGPHPKPHPGDWDPHP
7KHÀUVWVWDWHPHQWZLOOORDGXSWKHPHPRU\DWVLPXODWLRQWLPHVWDUWLQJDWWKHPHPRU\DGGUHVV7KHVHFRQGVWDWH
PHQWZLOOEHJLQORDGLQJDWDGGUHVVDQGFRQWLQXHRQWRZDUGVDGGUHVV)RUWKHWKLUGDQGÀQDOVWDWHPHQWORDGLQJ
ZLOOEHJLQDWDGGUHVVDQGFRQWLQXHGRZQWRZDUGVDGGUHVV
,QWKHWKLUGFDVHZKHQORDGLQJLVFRPSOHWHDÀQDOFKHFNLVSHUIRUPHGWRHQVXUHWKDWH[DFWO\QXPEHUVDUHFRQ
WDLQHGLQWKHÀOH,IWKHFKHFNIDLOVDZDUQLQJPHVVDJHLVLVVXHG
7LPHVFDOHV\VWHPWDVNV
7KHIROORZLQJV\VWHPWDVNVGLVSOD\DQGVHWWLPHVFDOHLQIRUPDWLRQ
D
SULQWWLPHVFDOH
E
WLPHIRUPDW
SULQWWLPHVFDOH
7KHSULQWWLPHVFDOHV\VWHPWDVNGLVSOD\VWKHWLPHXQLWDQGSUHFLVLRQIRUDSDUWLFXODUPRGXOH
6\QWD[
SULQWWLPHVFDOH>KLHUDUFKLFDOBQDPH@
7KLVV\VWHPWDVNFDQEHVSHFLÀHGZLWKRUZLWKRXWDQDUJXPHQW
³ :KHQQRDUJXPHQWLVVSHFLÀHGSULQWWLPHVFDOHGLVSOD\VWKHWLPHXQLWDQGSUHFLVLRQRIWKHPRGXOHWKDWLVWKH
FXUUHQWVFRSH
³ :KHQDQDUJXPHQWLVVSHFLÀHGSULQWWLPHVFDOHGLVSOD\VWKHWLPHXQLWDQGSUHFLVLRQRIWKHPRGXOHSDVVHGWR
LW
7KHWLPHVFDOHLQIRUPDWLRQDSSHDUVLQWKHIROORZLQJIRUPDW
7LPHVFDOHRIPRGXOHBQDPHLVXQLWSUHFLVLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
CWLPHVFDOHPVXV
PRGXOHDBGDW
LQLWLDO
SULQWWLPHVFDOHEBGDWF
HQGPRGXOH
CWLPHVFDOHIVIV
PRGXOHEBGDW
FBGDWF
HQGPRGXOH
CWLPHVFDOHQVQV
PRGXOHFBGDW
HQGPRGXOH
,Q WKLV H[DPSOH PRGXOH DBGDW LQYRNHV WKH SULQWWLPHVFDOH V\VWHP WDVN WR GLVSOD\ WLPHVFDOH LQIRUPDWLRQ DERXW
DQRWKHUPRGXOHFBGDWZKLFKLVLQVWDQWLDWHGLQPRGXOHEBGDW
7KHLQIRUPDWLRQDERXWFBGDWLVGLVSOD\HGLQWKHIROORZLQJIRUPDW
7LPHVFDOHRIEBGDWFLVQVQV
WLPHIRUPDW
6\QWD[
WLPHIRUPDW>XQLWVBQXPEHUSUHFLVLRQBQXPEHUVXIIL[BVWULQJPLQLPXPBILHOGBZLGWK@
7KHWLPHIRUPDWV\VWHPWDVNSHUIRUPVWKHIROORZLQJWZRIXQFWLRQV
³ ,W VSHFLÀHV KRZ WKH W IRUPDW VSHFLÀFDWLRQ UHSRUWV WLPH LQIRUPDWLRQ IRU WKH ZULWH GLVSOD\ VWUREH
PRQLWRUIZULWHIGLVSOD\IVWUREHDQGIPRQLWRUJURXSRIV\VWHPWDVNV
³ ,WVSHFLÀHVWKHWLPHXQLWIRUGHOD\VHQWHUHGLQWHUDFWLYHO\
7KHXQLWVQXPEHUDUJXPHQWVKDOOEHDQLQWHJHULQWKHUDQJHIURPWR7KLVDUJXPHQWUHSUHVHQWVWKHWLPHXQLWDV
VKRZQLQ7DEOH
7DEOH³WLPHIRUPDWXQLWVBQXPEHUDUJXPHQWV
8QLWQXPEHU
7LPHXQLW
8QLWQXPEHU
7LPHXQLW
V
QV
PV
QV
PV
SV
PV
SV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³WLPHIRUPDWXQLWVBQXPEHUDUJXPHQWVFRQWLQXHG
8QLWQXPEHU
7LPHXQLW
8QLWQXPEHU
7LPHXQLW
XV
SV
XV
IV
XV
IV
QV
IV
7KHWLPHIRUPDWV\VWHPWDVNSHUIRUPVWKHIROORZLQJWZRRSHUDWLRQV
³ ,WVHWVWKHWLPHXQLWIRUDOOODWHUHQWHUHGGHOD\VHQWHUHGLQWHUDFWLYHO\
³ ,WVHWVWKHWLPHXQLWSUHFLVLRQQXPEHUVXIÀ[VWULQJDQGPLQLPXPÀHOGZLGWKIRUDOOWIRUPDWVVSHFLÀHGLQ
DOOPRGXOHVWKDWIROORZLQWKHVRXUFHGHVFULSWLRQXQWLODQRWKHUWLPHIRUPDWV\VWHPWDVNLVLQYRNHG
7KHGHIDXOWWLPHIRUPDWV\VWHPWDVNDUJXPHQWVDUHJLYHQLQ7DEOH
7DEOH³WLPHIRUPDWGHIDXOWYDOXHIRUDUJXPHQWV
$UJXPHQW
'HIDXOW
XQLWVBQXPEHU
7KHVPDOOHVWWLPHSUHFLVLRQDUJXPHQWRIDOOWKHCWLPHVFDOHFRPSLOHU
GLUHFWLYHVLQWKHVRXUFHGHVFULSWLRQ
SUHFLVLRQBQXPEHU
VXIÀ[BVWULQJ
$QXOOFKDUDFWHUVWULQJ
PLQLPXPBÀHOGBZLGWK
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVWKHXVHRIWZLWKWKHWLPHIRUPDWV\VWHPWDVNWRVSHFLI\DXQLIRUPWLPHXQLWWLPH
SUHFLVLRQDQGIRUPDWIRUWLPLQJLQIRUPDWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
CWLPHVFDOHPVQV
PRGXOHFQWUO
LQLWLDO
WLPHIRUPDWQV
HQGPRGXOH
CWLPHVFDOHIVIV
PRGXOHDBGDW
UHJLQ
LQWHJHUILOH
EXIRLQ
LQLWLDOEHJLQ
ILOH IRSHQDGDW
IPRQLWRUILOHPWLQ GR KUHDOWLPHLQR
LQ LQ HQG
HQGPRGXOH
CWLPHVFDOHSVSV
PRGXOHDBGDW
UHJLQ
LQWHJHUILOH
EXIRLQ
LQLWLDOEHJLQ
ILOH IRSHQDGDW
IPRQLWRUILOHPWLQ GR KUHDOWLPHLQR
LQ LQ HQG
HQGPRGXOH
7KHFRQWHQWVRIÀOHDGDWDUHDVIROORZV
DBGDWQVLQ [R [
DBGDWQVLQ R [
DBGDWQVLQ R DBGDWQVLQ R 7KHFRQWHQWVRIÀOHDGDWDUHDVIROORZV
DBGDWQVLQ [R [
DBGDWQVLQ R [
DBGDWQVLQ R DBGDWQVLQ R ,QWKLVH[DPSOHWKHWLPHVRIHYHQWVZULWWHQWRWKHÀOHVE\WKHIPRQLWRU V\VWHPWDVNLQPRGXOHV DBGDWDQG
DBGDWDUHUHSRUWHGDVPXOWLSOHVRIQV³HYHQWKRXJKWKHWLPHXQLWVIRUWKHVHPRGXOHVDUHIVDQGSVUHVSHF
WLYHO\³EHFDXVHWKHÀUVWDUJXPHQWRIWKHWLPHIRUPDWV\VWHPWDVNLVDQGWKHWIRUPDWVSHFLÀFDWLRQLVLQFOXGHG
LQWKHDUJXPHQWVWRIPRQLWRU7KLVWLPHLQIRUPDWLRQLVUHSRUWHGDIWHUWKHPRGXOHQDPHVZLWKÀYHIUDFWLRQDOGLJLWV
IROORZHGE\DQ´QVµFKDUDFWHUVWULQJLQDVSDFHZLGHHQRXJKIRU$6&,,FKDUDFWHUV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
6LPXODWLRQFRQWUROV\VWHPWDVNV
7KHUHDUHWZRVLPXODWLRQFRQWUROV\VWHPWDVNV
D
ILQLVK
E
VWRS
ÀQLVK
6\QWD[
ILQLVK>Q@
7KHILQLVKV\VWHPWDVNVLPSO\PDNHVWKHVLPXODWRUH[LWDQGSDVVFRQWUROEDFNWRWKHKRVWRSHUDWLQJV\VWHP,IDQ
H[SUHVVLRQ LV VXSSOLHG WR WKLV WDVN WKHQ LWV YDOXH GHWHUPLQHV WKH GLDJQRVWLF PHVVDJHV WKDW DUH SULQWHG EHIRUH WKH
SURPSWLVLVVXHG,IQRDUJXPHQWLVVXSSOLHGWKHQDYDOXHRILVWDNHQDVWKHGHIDXOW
7DEOH³'LDJQRVWLFPHVVDJHVIRUVWRSDQGÀQLVK
3DUDPHWHUYDOXH
'LDJQRVWLFPHVVDJH
3ULQWVQRWKLQJ
3ULQWVVLPXODWLRQWLPHDQGORFDWLRQ
3ULQWVVLPXODWLRQWLPHORFDWLRQDQGVWDWLVWLFVDERXWWKHPHPRU\
DQG&38WLPHXVHGLQVLPXODWLRQ
VWRS
6\QWD[
VWRS>Q@
7KHVWRSV\VWHPWDVNFDXVHVVLPXODWLRQWREHVXVSHQGHG7KLVWDVNWDNHVDQRSWLRQDOH[SUHVVLRQDUJXPHQWRU
WKDWGHWHUPLQHVZKDWW\SHRIGLDJQRVWLFPHVVDJHLVSULQWHG7KHDPRXQWRIGLDJQRVWLFPHVVDJHVRXWSXWLQFUHDVHVZLWK
WKHYDOXHRIWKHRSWLRQDODUJXPHQWSDVVHGWRVWRS
7LPLQJFKHFNV\VWHPWDVNV
7KHWLPLQJFKHFNWDVNVPD\EHLQYRNHGLQVSHFLI\EORFNVWRYHULI\WKHWLPLQJSHUIRUPDQFHRIDGHVLJQE\PDNLQJVXUH
FULWLFDOHYHQWVRFFXUZLWKLQJLYHQWLPHOLPLWV
7LPLQJFKHFNVSHUIRUPWKHIROORZLQJVWHSV
D
'HWHUPLQHWKHHODSVHGWLPHEHWZHHQWZRHYHQWV
E
&RPSDUHWKHHODSVHGWLPHWRDVSHFLÀHGOLPLW
F
5HSRUWDWLPLQJYLRODWLRQLIWKHHODSVHGWLPHGRHVQRWIDOOZLWKLQWKHVSHFLÀHGWLPHZLQGRZ
7KHIROORZLQJV\VWHPWDVNVPD\EHXVHGIRUSHUIRUPLQJWLPLQJFKHFNV
VHWXS
VNHZ
6HFWLRQ
KROG
UHFRYHU\
VHWXSKROG
ZLGWK
SHULRG
QRFKDQJH
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOHGHVFULEHVWKHDUJXPHQWVWRWKHVHV\VWHPWDVNVZKLFKDUHH[SODLQHGZLWKLQGLYLGXDOV\VWHPWDVNDVZHOO
7DEOH³7LPLQJFKHFNDUJXPHQWV
$UJXPHQW
'HVFULSWLRQ
7\SH
UHIHUHQFHBHYHQW
7KHWUDQVLWLRQDWDFRQWUROVLJQDOWKDW
HVWDEOLVKHVWKHUHIHUHQFHWLPHIRUWUDFNLQJ
WLPLQJYLRODWLRQVRQWKHGDWDBHYHQW
0RGXOHLQSXWRULQRXW
WKDWLVVFDODURUYHFWRUQHW
GDWDBHYHQW
7KHVLJQDOFKDQJHWKDWLQLWLDWHVWKHWLPLQJ
FKHFNDQGLVPRQLWRUHGIRUYLRODWLRQV
0RGXOHLQSXWRULQRXW
WKDWLVVFDODURUYHFWRUQHW
OLPLW
$WLPHOLPLWXVHGWRGHWHFWWLPLQJYLROD
WLRQVRQWKHGDWDBHYHQW
&RQVWDQWH[SUHVVLRQRU
VSHFSDUDP
WKUHVKROG
7KHODUJHVWSXOVHZLGWKWKDWLVLJQRUHGE\
WKHWLPLQJFKHFNZLGWK
&RQVWDQWH[SUHVVLRQRU
VSHFSDUDP
VHWXSBOLPLW
$WLPHOLPLWXVHGWRGHWHFWWLPLQJYLROD
WLRQVRQWKHGDWDBHYHQWIRUVHWXS
&RQVWDQWH[SUHVVLRQRU
VSHFSDUDP
KROGBOLPLW
$WLPHOLPLWXVHGWRGHWHFWWLPLQJYLROD
WLRQVRQWKHGDWDBHYHQWIRUKROG
&RQVWDQWH[SUHVVLRQRU
VSHFSDUDP
QRWLÀHURSWLRQDO
$QRSWLRQDODUJXPHQWWKDW´QRWLÀHVµWKH
VLPXODWRUZKHQDWLPLQJYLRODWLRQRFFXUV
5HJLVWHU
VHWXS
6\QWD[
VHWXSGDWDBHYHQWUHIHUHQFHBHYHQWOLPLW>QRWLILHU@
7DEOHGHÀQHVWKHVHWXSV\VWHPWDVNDUJXPHQWV
7DEOH³VHWXSDUJXPHQWV
GDWDBHYHQW
/RZHUERXQGHYHQW
UHIHUHQFHBHYHQW
8SSHUERXQGHYHQW
OLPLW
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
7KHVHWXSWLPLQJFKHFNUHSRUWVDWLPLQJYLRODWLRQLQWKHIROORZLQJFDVH
WLPHRIUHIHUHQFHHYHQWWLPHRIGDWDHYHQWOLPLW
,IWKHUHIHUHQFHHYHQWDQGGDWDHYHQWRFFXUDWWKHVDPHVLPXODWLRQWLPHVHWXSSHUIRUPVWKHWLPLQJFKHFNEHIRUHLW
UHFRUGVWKHQHZGDWDHYHQWYDOXHWKHUHIRUHQRYLRODWLRQRFFXUV
KROG
6\QWD[
KROGUHIHUHQFHBHYHQWGDWDBHYHQWOLPLW>QRWLILHU@
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7DEOHGHÀQHVWKHKROGV\VWHPWDVNDUJXPHQWV
7DEOH³KROGDUJXPHQWV
UHIHUHQFHBHYHQW
/RZHUERXQGHYHQW
GDWDBHYHQW
8SSHUERXQGHYHQW
OLPLW
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
KROGV\VWHPWDVNUHSRUWVDYLRODWLRQLQWKHIROORZLQJFDVH
WLPHRIGDWDHYHQWWLPHRIUHIHUHQFHHYHQWOLPLW
KROGDOZD\VUHFRUGVWKHQHZUHIHUHQFHHYHQWWLPHEHIRUHLWSHUIRUPVWKHWLPLQJFKHFN7KHUHIRUHLIUHIHUHQFHDQG
GDWDHYHQWVRFFXUDWWKHVDPHVLPXODWLRQWLPHWKHUHZLOOEHDYLRODWLRQ
VHWXSKROG
6\QWD[
VHWXSKROGUHIHUHQFHBHYHQWGDWDBHYHQWVHWXSBOLPLWKROGBOLPLW>QRWLILHU@
7DEOHGHÀQHVWKHVHWXSKROGV\VWHPWDVNDUJXPHQWV
7DEOH³VHWXSKROGDUJXPHQWV
UHIHUHQFHBHYHQW
KROGORZHUERXQGHYHQW
VHWXSXSSHUERXQGHYHQW
GDWDBHYHQW
KROGXSSHUERXQGHYHQW
VHWXSORZHUERXQGHYHQW
VHWXSBOLPLW
&RQVWDQWH[SUHVVLRQRUVSHFSDUDP
KROGBOLPLW
&RQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
%HVLGHVEHLQJDFRQVWDQWH[SUHVVLRQRUDVSHFSDUDPWKHVHWXSOLPLWDQGKROGOLPLWVKDOOIROORZDQDGGLWLRQDOUHVWULF
WLRQ$OWKRXJKLQGLYLGXDOO\HDFKOLPLWPD\EHQHJDWLYHWKHVXPRIWKHOLPLWVVKDOOEHSRVLWLYH7KDWLV
VHWXSBOLPLWKROGBOLPLW!
7KHVHWXSKROGWLPLQJFKHFNLVDVKRUWKDQGZD\WRFRPELQHWKHIXQFWLRQDOLW\RIVHWXSDQGKROGLQWRRQHV\VWHP
WDVNFDOO7KHUHIRUHWKHIROORZLQJLQYRFDWLRQ
VHWXSKROGSRVHGJHFONGDWDW68W+/'
LVHTXLYDOHQWLQIXQFWLRQDOLW\WRWKHIROORZLQJLIW68DQGW+/'DUHQRWQHJDWLYH
VHWXSGDWDSRVHGJHFONW68
KROGSRVHGJHFONGDWDW+/'
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
ZLGWK
6\QWD[
ZLGWKUHIHUHQFHBHYHQWOLPLWWKUHVKROG>QRWLILHU@
7DEOHGHÀQHVWKHZLGWKV\VWHPWDVNDUJXPHQWV
7DEOH³ZLGWKDUJXPHQWV
UHIHUHQFHBHYHQW
(GJHWULJJHUHGHYHQW
OLPLW
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
WKUHVKROGRSWLRQDO
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
7KHZLGWKWLPLQJFKHFNPRQLWRUVWKHZLGWKRIVLJQDOSXOVHVE\WLPLQJWKHGXUDWLRQRIVLJQDOOHYHOVIURPRQHFORFN
HGJHWRWKHRSSRVLWHFORFNHGJH6LQFHDGDWDHYHQWLVQRWSDVVHGWRZLGWKLWLVGHULYHGIURPWKHUHIHUHQFHHYHQWDV
IROORZV
GDWDHYHQW UHIHUHQFHHYHQWVLJQDOZLWKRSSRVLWHHGJH
%HFDXVHRIWKHZD\WKHGDWDHYHQWLVGHULYHGIRUZLGWKDQHGJHWULJJHUHGHYHQWKDVWREHSDVVHGDVWKHUHIHUHQFH
HYHQW$FRPSLODWLRQHUURUZLOORFFXULIWKHUHIHUHQFHHYHQWLVQRWDQHGJHVSHFLÀFDWLRQ
7KHZLGWKWLPLQJFKHFNUHSRUWVDYLRODWLRQLQWKHIROORZLQJFDVH
WKUHVKROGWLPHRIGDWDHYHQWWLPHRIUHIHUHQFHHYHQWOLPLW
,QRWKHUZRUGVWKHSXOVHZLGWKKDVWREHJUHDWHUWKDQRUHTXDOWROLPLWLQRUGHUWRDYRLGDWLPLQJYLRODWLRQ
7KHGDWDHYHQWDQGWKHUHIHUHQFHHYHQWZLOOQHYHURFFXUDWWKHVDPHVLPXODWLRQWLPHEHFDXVHWKHVHHYHQWVDUHWULJJHUHG
E\RSSRVLWHWUDQVLWLRQV
7KH QXOO DUJXPHQWV IRU ZLGWK DUH QRW DFFHSWHG7KHUHIRUH WKH WKUHVKROG DUJXPHQW VKDOO EH SDVVHG LI WKH QRWLÀHU
DUJXPHQWLVUHTXLUHG,WLVSHUPLVVLEOHKRZHYHUWRGURSERWKWKHWKUHVKROGDQGQRWLÀHUDUJXPHQWVZKHQLQYRNLQJ
ZLGWK
([DPSOH
7KHIROORZLQJH[DPSOHGHPRQVWUDWHVVRPHH[DPSOHVRIOHJDODQGLOOHJDOFDOOV
/HJDO&DOOV
ZLGWKQHJHGJHFOUOLP
ZLGWKQHJHGJHFOUOLPWKUHVKQRWLI
ZLGWKQHJHGJHFOUOLPQRWLI
,OOHJDO&DOOV
ZLGWKQHJHGJHFOUOLPQRWLI
ZLGWKQHJHGJHFOUOLPQRWLI
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
SHULRG
6\QWD[
SHULRGUHIHUHQFHBHYHQWOLPLW>QRWLILHU@
7DEOHGHÀQHVWKHSHULRGV\VWHPWDVNDUJXPHQWV
7DEOH³SHULRGDUJXPHQWV
UHIHUHQFHBHYHQW
(GJHWULJJHUHGHYHQW
OLPLW
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
6LQFHWKHGDWDHYHQWLVQRWSDVVHGDVDQDUJXPHQWWRSHULRGLWLVGHULYHGIURPWKHUHIHUHQFHHYHQWDVIROORZV
GDWDHYHQW UHIHUHQFHHYHQWVLJQDOZLWKWKHVDPHHGJH
%HFDXVHRIWKHZD\WKHGDWDHYHQWLVGHULYHGIRUSHULRGDQHGJHWULJJHUHGHYHQWKDVWREHSDVVHGDVWKHUHIHUHQFH
HYHQW$FRPSLODWLRQHUURUZLOORFFXULIWKHUHIHUHQFHHYHQWLVQRWDQHGJHVSHFLÀFDWLRQ
7KHSHULRGWLPLQJFKHFNUHSRUWVDYLRODWLRQLQWKHIROORZLQJFDVH
WLPHRIGDWDHYHQWWLPHRIUHIHUHQFHHYHQWOLPLW
VNHZ
6\QWD[
VNHZUHIHUHQFHBHYHQWGDWDBHYHQWOLPLW>QRWLILHU@
7DEOHGHÀQHVWKHVNHZV\VWHPWDVNDUJXPHQWV
7DEOH³VNHZDUJXPHQWV
UHIHUHQFHBHYHQW
/RZHUERXQGHYHQW
GDWDBHYHQW
8SSHUERXQGHYHQW
OLPLW
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
7KHVNHZWLPLQJFKHFNUHSRUWVDYLRODWLRQLQWKHIROORZLQJFDVH
WLPHRIGDWDHYHQWWLPHRIUHIHUHQFHHYHQW!OLPLW
7KHVNHZWLPLQJFKHFNDOZD\VUHFRUGVWKHQHZWLPHRIUHIHUHQFHHYHQWEHIRUHLWSHUIRUPVWKHWLPLQJFKHFN,IWKH
GDWDHYHQWDQGWKHUHIHUHQFHHYHQWRFFXUDWWKHVDPHVLPXODWLRQWLPHVNHZGRHVQRWUHSRUWDWLPLQJYLRODWLRQ
UHFRYHU\
6\QWD[
UHFRYHU\UHIHUHQFHBHYHQWGDWDBHYHQWOLPLW>QRWLILHU@
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOHGHÀQHVWKHUHFRYHU\V\VWHPWDVNDUJXPHQWV
7DEOH³UHFRYHU\DUJXPHQWV
UHIHUHQFHBHYHQW
(GJHWULJJHUHGHYHQW
GDWDBHYHQW
8SSHUERXQGHYHQW
OLPLW
3RVLWLYHFRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
7KHUHIHUHQFHHYHQWVKDOOEHVSHFLÀHGDVDQHGJHWULJJHUHGHYHQWXVLQJHLWKHUWKHSRVHGJHRUWKHQHJHGJHNH\ZRUG
1RWVSHFLI\LQJDQHGJHUHVXOWVLQLOOHJDOVSHFLÀFDWLRQRIWKHUHIHUHQFHHYHQW
7KHUHFRYHU\WLPLQJFKHFNV\VWHPWDVNUHSRUWVDWLPLQJYLRODWLRQLQWKHIROORZLQJFDVH
WLPHRIGDWDHYHQWWLPHRIUHIHUHQFHHYHQWOLPLW
7KHUHFRYHU\V\VWHPWDVNUHFRUGVWKHQHZUHIHUHQFHHYHQWWLPHEHIRUHSHUIRUPLQJWKHWLPLQJFKHFNVRLIDGDWD
HYHQWDQGDUHIHUHQFHHYHQWRFFXUDWWKHVDPHVLPXODWLRQWLPHDYLRODWLRQRFFXUV
QRFKDQJH
6\QWD[
QRFKDQJHUHIHUHQFHBHYHQWGDWDBHYHQWVWDUWBHGJHBRIIVHWHQGBHGJHBRIIVHW>QRWLILHU@
7DEOHGHÀQHVWKHQRFKDQJHV\VWHPWDVNDUJXPHQWV
7DEOH³QRFKDQJHDUJXPHQWV
UHIHUHQFHBHYHQW
(GJHWULJJHUHGHYHQW
GDWDBHYHQW
8SSHUERXQGHYHQW
VWDUWBHGJHBRIIVHW
$Q\FRQVWDQWH[SUHVVLRQRUVSHFSDUDP
HQGBHGJHBRIIVHW
$Q\FRQVWDQWH[SUHVVLRQRUVSHFSDUDP
QRWLÀHURSWLRQDO
5HJLVWHU
7KHQRFKDQJHWLPLQJFKHFNV\VWHPWDVNUHSRUWVDWLPLQJYLRODWLRQLIWKHGDWDHYHQWRFFXUVGXULQJWKHVSHFLÀHGOHYHO
RIWKHFRQWUROVLJQDOWKHUHIHUHQFHHYHQW7KHUHIHUHQFHHYHQWPD\EHVSHFLÀHGZLWKWKHSRVHGJHRUWKHQHJHGJHNH\
ZRUGEXWWKHHGJHFRQWUROVSHFLÀHUVVHHFDQQRWEHXVHG
7KHVWDUWHGJHDQGHQGHGJHRIIVHWVFDQH[SDQGRUVKULQNWKHWLPLQJYLRODWLRQUHJLRQZKLFKLVGHÀQHGE\WKHGXUDWLRQ
RIWKHUHIHUHQFHHYHQWVLJQDOHGJH$SRVLWLYHRIIVHWIRUVWDUWHGJHH[WHQGVWKHUHJLRQE\VWDUWLQJWKHWLPLQJYLRODWLRQ
UHJLRQHDUOLHUDQHJDWLYHRIIVHWIRUVWDUWHGJHVKULQNVWKHUHJLRQE\VWDUWLQJWKHUHJLRQODWHU6LPLODUO\DSRVLWLYHRIIVHW
IRUWKHHQGHGJHH[WHQGVWKHWLPLQJYLRODWLRQUHJLRQE\HQGLQJLWODWHUZKLOHDQHJDWLYHRIIVHWIRUWKHHQGHGJHVKULQNV
WKHUHJLRQE\HQGLQJLWHDUOLHU,IERWKWKHRIIVHWVDUH]HURWKHVL]HRIWKHUHJLRQZLOOQRWFKDQJH
([DPSOH
QRFKDQJHSRVHGJHFONGDWD
,QWKLVH[DPSOHQRFKDQJHV\VWHPWDVNZLOOUHSRUWDYLRODWLRQLIWKHGDWDVLJQDOFKDQJHVZKLOHFONLVKLJK
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
(GJHFRQWUROVSHFLÀHUV
7KHHGJHFRQWUROVSHFLÀHUVPD\EHXVHGWRFRQWUROHYHQWVLQWLPLQJFKHFNVEDVHGRQVSHFLÀFHGJHWUDQVLWLRQVEHWZHHQ
DQG[
HGJHBFRQWUROBVSHFLÀHU HGJH>WUDQVLWLRQBSDLU^WUDQVLWLRQBSDLU`@
WUDQVLWLRQBSDLU _[__[_[_[
6\QWD[³6\QWD[IRUHGJHFRQWUROVSHFLILHU
(GJHFRQWUROVSHFLÀHUVFRQWDLQWKHNH\ZRUGHGJHIROORZHGE\DVTXDUHEUDFNHWHGOLVWRIIURPRQHWRVL[SDLUVRIHGJH
WUDQVLWLRQVEHWZHHQDQG[DVIROORZV
[
[
[
[
7UDQVLWLRQIURPWR
7UDQVLWLRQIURPWR[
7UDQVLWLRQIURPWR
7UDQVLWLRQIURPWR[
7UDQVLWLRQIURP[WR
7UDQVLWLRQIURP[WR
(GJHWUDQVLWLRQVLQYROYLQJ]DUHWUHDWHGWKHVDPHZD\DVHGJHWUDQVLWLRQVLQYROYLQJ[
7KHSRVHGJHDQGQHJHGJHNH\ZRUGVPD\EHXVHGDVDVKRUWKDQGIRUFHUWDLQHGJHFRQWUROVSHFLÀHUV)RUH[DPSOHWKH
FRQVWUXFW
SRVHGJHFOU
LVHTXLYDOHQWWRWKHIROORZLQJ
HGJH>[[@FOU
6LPLODUO\WKHFRQVWUXFW
QHJHGJHFOU
LVWKHVDPHDVWKHIROORZLQJ
HGJH>[[@FOU
+RZHYHUHGJHFRQWUROVSHFLÀHUVRIIHUWKHÁH[LELOLW\WRGHFODUHHGJHWUDQVLWLRQVRWKHUWKDQSRVHGJHDQGQHJHGJH
1RWLÀHUVXVHUGHÀQHGUHVSRQVHVWRWLPLQJYLRODWLRQV
7LPLQJFKHFNQRWLÀHUVGHWHFWWLPLQJFKHFNYLRODWLRQVEHKDYLRUDOO\DQGWKHUHIRUHWDNHDQDFWLRQDVVRRQDVDYLROD
WLRQRFFXUV6XFKQRWLÀHUVPD\EHXVHGWRSULQWDQLQIRUPDWLYHHUURUPHVVDJHGHVFULELQJWKHYLRODWLRQRUWRSURSDJDWH
DQ[YDOXHDWWKHRXWSXWRIWKHGHYLFHWKDWUHSRUWHGWKHYLRODWLRQ
7KHQRWLÀHULVDUHJLVWHU³GHFODUHGLQWKHPRGXOHZKHUHWLPLQJFKHFNWDVNVDUHLQYRNHG³WKDWLVSDVVHGDVWKHODVW
DUJXPHQWWRDV\VWHPWLPLQJFKHFN:KHQHYHUDWLPLQJYLRODWLRQRFFXUVWKHV\VWHPWDVNXSGDWHVWKHYDOXHRIWKHQRWL
ÀHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHQRWLÀHULVDQRSWLRQDODUJXPHQWWRDOOV\VWHPWLPLQJFKHFNVDQGFDQEHRPLWWHGIURPWKHV\VWHPWDVNFDOOZLWKRXW
DGYHUVHO\DIIHFWLQJLWVRSHUDWLRQ
7DEOHVKRZVKRZWKHQRWLÀHUYDOXHVDUHWRJJOHGZKHQWLPLQJYLRODWLRQVRFFXU
7DEOH³1RWLÀHUYDOXHFKDQJHV
%()25(YLRODWLRQ
$)7(5YLRODWLRQ
[
]
]
([DPSOHV
([DPSOH
VHWXSGDWDSRVHGJHFONQRWLI\BUHJ
ZLGWKSRVHGJHFONQRWLI\BUHJ
([DPSOH³&RQVLGHUDPRUHFRPSOH[H[DPSOHRIKRZWRXVHQRWLÀHUVLQDEHKDYLRUDOPRGHO7KHH[DPSOHWKDWIRO
ORZVXVHVDQRWLÀHUWRVHWWKH'ÁLSÁRSRXWSXWWR[ZKHQDWLPLQJYLRODWLRQRFFXUVLQDQHGJHVHQVLWLYH8'3
SULPLWLYHSRVGIIBXGSTFORFNGDWDSUHVHWFOHDUQRWLILHU
RXWSXWTUHJT
LQSXWFORFNGDWDSUHVHWFOHDUQRWLILHU
WDEOH
FORFNGDWDSFQRWLILHUVWDWHT
U""
U""
S""
S""
Q"""""
"""""
""""
"""
""""
"""
"""""[$WDQ\QRWLILHUHYHQW
RXWSXW[
HQGWDEOH
HQGSULPLWLYH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PRGXOHGIITTEDUFORFNGDWDSUHVHWFOHDU
RXWSXWTTEDU
LQSXWFORFNGDWDSUHVHWFOHDU
UHJQRWLILHU
DQGHQDEOHSUHVHWFOHDU
QRWTEDUIIRXW
EXITIIRXW
SRVGIIBXGSIIRXWFORFNGDWDSUHVHWFOHDUQRWLILHU
VSHFLI\
'HILQHWLPLQJFKHFNVSHFSDUDPYDOXHV
VSHFSDUDPW68 W+' W3: W:3& W5(& 'HILQHPRGXOHSDWKGHOD\ULVHDQGIDOOPLQW\SPD[YDOXHV
VSHFSDUDPW3/+F W3+/F VSHFSDUDPW3/+SF W3+/SF 6SHFLI\PRGXOHSDWKGHOD\V
FORFN!TTEDU W3/+FW3+/F
SUHVHWFOHDU!TTEDU W3/+SFW3+/SF
6HWXSWLPHGDWDWRFORFNRQO\ZKHQSUHVHWDQGFOHDUDUH
VHWXSGDWDSRVHGJHFORFNHQDEOHW68QRWLILHU
+ROGWLPHFORFNWRGDWDRQO\ZKHQSUHVHWDQGFOHDUDUH
KROGSRVHGJHFORFNGDWDHQDEOHW+'QRWLILHU
&ORFNSHULRGFKHFN
SHULRGSRVHGJHFORFNW3:QRWLILHU
3XOVHZLGWKSUHVHWFOHDU
ZLGWKQHJHGJHSUHVHWW:3&QRWLILHU
ZLGWKQHJHGJHFOHDUW:3&QRWLILHU
5HFRYHU\WLPHFOHDURUSUHVHWWRFORFN
UHFRYHU\SRVHGJHSUHVHWSRVHGJHFORFNW5(&QRWLILHU
UHFRYHU\SRVHGJHFOHDUSRVHGJHFORFNW5(&QRWLILHU
HQGVSHFLI\
HQGPRGXOH
127(³7KLVPRGHODSSOLHVWRHGJHVHQVLWLYH8'3VRQO\IRUOHYHOVHQVLWLYHPRGHOVDQDGGLWLRQDO8'3IRU[SURSDJDWLRQKDVWR
EHJHQHUDWHG
(QDEOLQJWLPLQJFKHFNVZLWKFRQGLWLRQHGHYHQWV
$FRQVWUXFWFDOOHGDFRQGLWLRQHGHYHQWWLHVWKHRFFXUUHQFHRIWLPLQJFKHFNVWRWKHYDOXHRIDFRQGLWLRQLQJVLJQDO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
FRQWUROOHGBWLPLQJBFKHFNBHYHQW WLPLQJBFKHFNBHYHQWBFRQWUROVSHFLI\BWHUPLQDOBGHVFULSWRU>
WLPLQJBFKHFNBFRQGLWLRQ@
WLPLQJBFKHFNBFRQGLWLRQ VFDODUBH[SUHVVLRQ
_aVFDODUBH[SUHVVLRQ
_VFDODUBH[SUHVVLRQ VFDODUBFRQVWDQW
_VFDODUBH[SUHVVLRQ
VFDODUBFRQVWDQW
_VFDODUBH[SUHVVLRQ VFDODUBFRQVWDQW
_VFDODUBH[SUHVVLRQ VFDODUBFRQVWDQW
6\QWD[³6\QWD[IRUFRQWUROOHGWLPLQJFKHFNHYHQW
7KHFRPSDULVRQVXVHGLQWKHFRQGLWLRQPD\EHGHWHUPLQLVWLFDVLQ
aRUQRRSHUDWLRQRUQRQGHWHUPLQLVWLF
DVLQ RU :KHQFRPSDULVRQVDUHGHWHUPLQLVWLFDQ[YDOXHRQWKHFRQGLWLRQLQJVLJQDOZLOOQRWHQDEOHWKHWLPLQJ
FKHFN)RUQRQGHWHUPLQLVWLFFRPSDULVRQVDQ[RQWKHFRQGLWLRQLQJVLJQDOZLOOHQDEOHWKHWLPLQJFKHFN
7KHFRQGLWLRQLQJVLJQDOVKDOOEHDVFDODUQHWLIDYHFWRUQHWRUDQH[SUHVVLRQUHVXOWLQJLQDPXOWLELWYDOXHLVXVHGWKHQ
WKHOHDVWVLJQLÀFDQWELWRIWKHYHFWRUQHWRUWKHH[SUHVVLRQYDOXHLVXVHG
,IPRUHWKDQRQHFRQGLWLRQLQJVLJQDOLVUHTXLUHGIRUFRQGLWLRQLQJWLPLQJFKHFNVDSSURSULDWHORJLFVKDOOEHFRPELQHG
LQDVHSDUDWHVLJQDORXWVLGHWKHVSHFLI\EORFNZKLFKPD\EHXVHGDVWKHFRQGLWLRQLQJVLJQDO
([DPSOHV
([DPSOH³7RLOOXVWUDWHWKHGLIIHUHQFHEHWZHHQFRQGLWLRQHGDQGXQFRQGLWLRQHGWLPLQJFKHFNHYHQWVFRQVLGHUWKHIRO
ORZLQJH[DPSOHZLWKXQFRQGLWLRQHGWLPLQJFKHFN
VHWXSGDWDSRVHGJHFON
+HUHDVHWXSWLPLQJFKHFNZLOORFFXUHYHU\WLPHWKHUHLVDSRVLWLYHHGJHRQWKHVLJQDOFON
7RWULJJHUWKHVHWXSFKHFNRQWKHSRVLWLYHHGJHRQWKHVLJQDOFONRQO\ZKHQWKHVLJQDOFOULVKLJKUHZULWHWKHFRP
PDQGDV
VHWXSGDWDSRVHGJHFONFOU
([DPSOH³7KLVH[DPSOHVKRZVWZRZD\VWRWULJJHUWKHVDPHWLPLQJFKHFNDVLQH[DPSOHRQWKHSRVLWLYHFON
HGJHRQO\ZKHQFOULVORZ7KHVHFRQGPHWKRGXVHVWKH
RSHUDWRUZKLFKPDNHVWKHFRPSDULVRQGHWHUPLQLVWLF
VHWXSGDWDSRVHGJHFONaFOU
VHWXSGDWDSRVHGJHFONFOU
([DPSOH³7RSHUIRUPWKHSUHYLRXVVDPSOHVHWXSFKHFNRQWKHSRVLWLYHFONHGJHRQO\ZKHQFOUDQGVHWDUHKLJK
DGGWKHIROORZLQJVWDWHPHQWRXWVLGHWKHVSHFLI\EORFN
DQGQHZBJDWHFOUBDQGBVHWFOUVHW
7KHQDGGWKHFRQGLWLRQWRWKHWLPLQJFKHFNXVLQJWKHVLJQDOFOUBDQGBVHWDVIROORZV
VHWXSGDWDSRVHGJHFONFOUBDQGBVHW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
3/$PRGHOLQJV\VWHPWDVNV
7KHPRGHOLQJRI3/$GHYLFHVLVSURYLGHGLQWKH9HULORJ+'/E\DJURXSRIV\VWHPWDVNV7KLVFODXVHGHVFULEHVWKH
V\QWD[DQGXVHRIWKHVHV\VWHPWDVNVDQGWKHIRUPDWVRIWKHORJLFDUUD\SHUVRQDOLW\ÀOH
SODBV\VWHPBWDVN DUUD\BW\SHORJLFIRUPDWPHPRU\BQDPHLQSXWBWHUPV
RXWSXWBWHUPV
DUUD\BW\SH V\QF_DV\QF
ORJLF DQG_RU_QDQG_QRU
IRUPDW DUUD\_SODQH
PHPRU\BQDPH PHPRU\BLGHQWLILHU
LQSXWBWHUPV ^VFDODUBYDULDEOHV`
RXWSXWBWHUPV ^VFDODUBYDULDEOHV`
VFDODUBYDULDEOHV VFDODUBYDULDEOH^VFDODUBYDULDEOH`
6\QWD[³6\QWD[IRU3/$PRGHOLQJV\VWHPWDVN
7KH3/$V\QWD[DOORZVIRUWKHV\VWHPWDVNVDVVKRZQLQ7DEOH
7DEOH³3/$V\VWHPWDVNV
DV\QFDQGDUUD\
V\QFDQGDUUD\
DV\QFDQGSODQH
V\QFDQGSODQH
DV\QFQDQGDUUD\
V\QFQDQGDUUD\
DV\QFQDQGSODQH
V\QFQDQGSODQH
DV\QFRUDUUD\
V\QFRUDUUD\
DV\QFRUSODQH
V\QFRUSODQH
DV\QFQRUDUUD\
V\QFQRUDUUD\
DV\QFQRUSODQH
V\QFQRUSODQH
$UUD\W\SHV
7KHPRGHOLQJRIERWKV\QFKURQRXVDQGDV\QFKURQRXVDUUD\VLVSURYLGHGE\WKH3/$V\VWHPWDVNV7KHV\QFKURQRXV
IRUPVFRQWUROWKHWLPHDWZKLFKWKHORJLFDUUD\ZLOOEHHYDOXDWHGDQGWKHRXWSXWVZLOOEHXSGDWHG)RUWKHDV\QFKUR
QRXVIRUPVWKHHYDOXDWLRQVDUHDXWRPDWLFDOO\SHUIRUPHGZKHQHYHUDQLQSXWWHUPFKDQJHVYDOXHRUDQ\ZRUGLQWKH
SHUVRQDOLW\PHPRU\LVFKDQJHG
)RUERWKWKHV\QFKURQRXVDQGDV\QFKURQRXVIRUPVWKHRXWSXWWHUPVDUHXSGDWHGZLWKRXWDQ\GHOD\
([DPSOHV
$QH[DPSOHRIDQDV\QFKURQRXVV\VWHPFDOOLVDVIROORZV
DV\QFDQGDUUD\PHP^DDDDDDD`^EEE`
$QH[DPSOHRIDV\QFKURQRXVV\VWHPFDOOLVDVIROORZV
V\QFRUSODQHPHP^DDDDDDD`^EEE`
1RWHWKDWWKHLQSXWWHUPVDQGWKHRXWSXWWHUPVDUHDOZD\VUHSUHVHQWHGDVFRQFDWHQDWLRQV
$UUD\ORJLFW\SHV
7KHORJLFDUUD\VDUHPRGHOHGZLWKDQGRUQDQGDQGQRUORJLFSODQHV7KLVDSSOLHVWRDOODUUD\W\SHVDQGIRUPDWV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOHV
$QH[DPSOHRIDQRUSODQHV\VWHPFDOOLVDVIROORZV
DV\QFQRUDUUD\PHP^DDDDDDD`^EEE`
$QH[DPSOHRIDQDQGSODQHV\VWHPFDOOLVDVIROORZV
V\QFQDQGSODQHPHP^DDDDDDD`^EEE`
/RJLFDUUD\SHUVRQDOLW\GHFODUDWLRQDQGORDGLQJ
7KHORJLFDUUD\SHUVRQDOLW\LVGHFODUHGDVDQDUUD\RIUHJLVWHUVWKDWLVDVZLGHDVWKHQXPEHURILQSXWWHUPVDQGDVGHHS
DVWKHQXPEHURIRXWSXWWHUPV
7KHSHUVRQDOLW\RIWKHORJLFDUUD\LVQRUPDOO\ORDGHGLQWRWKHPHPRU\IURPDWH[WGDWDÀOHXVLQJWKHV\VWHPWDVNV
UHDGPHPERUUHDGPHPK$OWHUQDWLYHO\WKHSHUVRQDOLW\GDWDPD\EHZULWWHQGLUHFWO\LQWRWKHPHPRU\XVLQJWKH
SURFHGXUDO DVVLJQPHQW VWDWHPHQWV 3/$ SHUVRQDOLWLHV PD\ EH FKDQJHG G\QDPLFDOO\ DW DQ\ WLPH GXULQJ VLPXODWLRQ
VLPSO\E\FKDQJLQJWKHFRQWHQWVRIWKHPHPRU\7KHQHZSHUVRQDOLW\ZLOOEHUHÁHFWHGRQWKHRXWSXWVRIWKHORJLF
DUUD\DWWKHQH[WHYDOXDWLRQ
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVDORJLFDUUD\ZLWKQLQSXWWHUPVDQGPRXWSXWWHUPV
UHJ>Q@PHP>P@
127(³3XW3/$LQSXWWHUPVRXWSXWWHUPVDQGPHPRU\LQDVFHQGLQJRUGHUDVVKRZQLQH[DPSOHVLQWKLVFODXVH
/RJLFDUUD\SHUVRQDOLW\IRUPDWV
7ZRVHSDUDWHSHUVRQDOLW\IRUPDWVDUHVXSSRUWHGE\WKH9HULORJ+'/DQGDUHGLIIHUHQWLDWHGE\XVLQJHLWKHUDQDUUD\
V\VWHPFDOORUDSODQHV\VWHPFDOO7KHDUUD\V\VWHPFDOODOORZVIRUDRULQWKHPHPRU\WKDWKDVEHHQGHFODUHG$
PHDQVWDNHWKHLQSXWYDOXHDQGDPHDQVGRQRWWDNHWKHLQSXWYDOXH
7KHSODQHV\VWHPFDOOFRPSOLHVZLWKWKH8QLYHUVLW\RI&DOLIRUQLDDW%HUNHOH\IRUPDWIRU(VSUHVVR(DFKELWRIWKHGDWD
VWRUHGLQWKHDUUD\KDVWKHIROORZLQJPHDQLQJ
7DNHWKHFRPSOHPHQWHGLQSXWYDOXH
7DNHWKHWUXHLQSXWYDOXH
[
7DNHWKH´ZRUVWFDVHµRIWKHLQSXWYDOXH
]
'RQ·WFDUHWKHLQSXWYDOXHLVRIQRVLJQLÀFDQFH
"
6DPHDV]
([DPSOHV
([DPSOH³7KHIROORZLQJH[DPSOHLOOXVWUDWHVDQDUUD\ZLWKORJLFHTXDWLRQV
E DD
E DDD
E DDD
7KH3/$SHUVRQDOLW\LVDVIROORZV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQPHP>@
LQPHP>@
LQPHP>@
7KHPRGXOHIRUWKH3/$LVDVIROORZV
PRGXOHDV\QFBDUUD\DDDDDDDEEE
LQSXWDDDDDDD
RXWSXWEEE
UHJ>@PHP>@PHPRU\GHFODUDWLRQIRUDUUD\SHUVRQDOLW\
UHJEEE
LQLWLDOEHJLQ
VHWXSWKHSHUVRQDOLW\IURPWKHILOHDUUD\GDW
UHDGPHPEDUUD\GDWPHP
VHWXSDQDV\QFKURQRXVORJLFDUUD\ZLWKWKHLQSXW
DQGRXWSXWWHUPVH[SUHVVHGDVFRQFDWHQDWLRQV
DV\QFDQGDUUD\PHP^DDDDDDD`^EEE`
HQG
HQGPRGXOH
:KHUHWKHÀOHDUUD\GDWFRQWDLQVWKHELQDU\GDWDIRUWKH3/$SHUVRQDOLW\
([DPSOH³$QH[DPSOHRIWKHXVDJHRIWKHSODQHIRUPDWWDVNVIROORZV7KHORJLFDOIXQFWLRQRIWKLV3/$LVVKRZQ
ÀUVWIROORZHGE\WKH3/$SHUVRQDOLW\LQWKHQHZIRUPDWWKH9HULORJ+'/GHVFULSWLRQXVLQJWKHDV\QFDQGSODQH
V\VWHPWDVNDQGÀQDOO\WKHUHVXOWRIUXQQLQJWKHVLPXODWLRQ
7KHORJLFDOIXQFWLRQRIWKH3/$LVDVIROORZV
E>@
E>@
E>@
E>@
D>@aD>@
D>@
aD>@aD>@
7KH3/$SHUVRQDOLW\LVDVIROORZV
·E"
·E""
·E"
·E"""
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHSOD
CGHILQHURZV
CGHILQHFROV
UHJ>CFROV@DPHP>CURZV@
UHJ>CURZV@E
LQLWLDOEHJLQ
3/$V\VWHPFDOO
DV\QFDQGSODQHPHP^D>@D>@D>@`^E>@E>@E>@E>@`
PHP>@ ·E"
PHP>@ ·E""
PHP>@ ·E"
PHP>@ ·E"""
VWLPXOXVDQGGLVSOD\
D ·E
GLVSOD\ED!E
D ·E
GLVSOD\ED!E
D ·E[[[
GLVSOD\ED!E
D ·E
GLVSOD\ED!E
HQG
HQGPRGXOH
7KHRXWSXWLVDVIROORZV
!
!
[[[![[[
!
6WRFKDVWLFDQDO\VLVWDVNV
7KLVFODXVHGHVFULEHVDVHWRIV\VWHPWDVNVDQGIXQFWLRQVWKDWPDQDJHTXHXHVDQGJHQHUDWHUDQGRPQXPEHUVZLWKVSH
FLÀFGLVWULEXWLRQV7KHVHWDVNVIDFLOLWDWHLPSOHPHQWDWLRQRIVWRFKDVWLFTXHXHLQJPRGHOV
7KHVHWRIWDVNVDQGIXQFWLRQVWKDWFUHDWHDQGPDQDJHTXHXHVIROORZ
TBLQLWLDOL]HTBLGTBW\SHPD[BOHQJWKVWDWXV
TBDGGTBLGMREBLGLQIRUPBLGVWDWXV
TBUHPRYHTBLGMREBLGLQIRUPBLGVWDWXV
TBIXOOTBLGVWDWXV
TBH[DPTBLGTBVWDWBFRGHTBVWDWBYDOXHVWDWXV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
TBLQLWLDOL]H
7KHTBLQLWLDOL]HV\VWHPWDVNFUHDWHVQHZTXHXHV7KHTBLGSDUDPHWHULVDQLQWHJHULQSXWWKDWVKDOOXQLTXHO\LGHQWLI\
WKHQHZTXHXH7KHTBW\SHSDUDPHWHULVDQLQWHJHULQSXW7KHYDOXHRIWKHTBW\SHSDUDPHWHUVSHFLÀHVWKHW\SHRIWKH
TXHXHDVVKRZQLQ7DEOH
7DEOH³TBW\SHSDUDPHWHUYDOXH
TBW\SHYDOXH
7\SHRITXHXH
ÀUVWLQÀUVWRXW
ODVWLQÀUVWRXW
7KHPD[LPXPOHQJWKSDUDPHWHULVDQLQWHJHULQSXWWKDWVSHFLÀHVWKHPD[LPXPQXPEHURIHQWULHVWKDWZLOOEHDOORZHG
RQWKHTXHXH7KHVXFFHVVRUIDLOXUHRIWKHFUHDWLRQRIWKHTXHXHLVUHWXUQHGDVDQLQWHJHUYDOXHLQVWDWXV7KHHUURU
FRQGLWLRQVDQGFRUUHVSRQGLQJYDOXHVRIVWDWXVDUHGHVFULEHGLQ7DEOH
TBDGG
7KHTBDGGV\VWHPWDVNSODFHVDQHQWU\RQDTXHXH7KHTBLGSDUDPHWHULVDQLQWHJHULQSXWWKDWLQGLFDWHVWRZKLFK
TXHXHWRDGGWKHHQWU\7KHMREBLGSDUDPHWHULVDQLQWHJHULQSXWWKDWLGHQWLÀHVWKHMRE
7KHLQIRUPBLGSDUDPHWHULVDQLQWHJHULQSXWWKDWLVDVVRFLDWHGZLWKWKHTXHXHHQWU\,WVPHDQLQJLVXVHUGHÀQHG)RU
H[DPSOHLQIRUPBLGSDUDPHWHUFDQUHSUHVHQWH[HFXWLRQWLPHIRUDQHQWU\LQD&38PRGHO7KHVWDWXVSDUDPHWHUUHSRUWV
RQWKHVXFFHVVRIWKHRSHUDWLRQRUHUURUFRQGLWLRQVDVGHVFULEHGLQ7DEOH
TBUHPRYH
7KHTBUHPRYHV\VWHPWDVNUHFHLYHVDQHQWU\IURPDTXHXH7KHTBLGSDUDPHWHULVDQLQWHJHULQSXWWKDWLQGLFDWHV
IURPZKLFKTXHXHWRUHPRYH7KHMREBLGSDUDPHWHULVDQLQWHJHURXWSXWWKDWLGHQWLÀHVWKHHQWU\EHLQJUHPRYHG7KH
LQIRUPBLGSDUDPHWHULVDQLQWHJHURXWSXWWKDWWKHTXHXHPDQDJHUVWRUHGGXULQJTBDGG,WVPHDQLQJLVXVHUGHÀQHG
7KHVWDWXVSDUDPHWHUUHSRUWVRQWKHVXFFHVVRIWKHRSHUDWLRQRUHUURUFRQGLWLRQVDVGHVFULEHGLQ7DEOH
TBIXOO
7KHTBIXOOV\VWHPIXQFWLRQFKHFNVZKHWKHUWKHUHLVURRPIRUDQRWKHUHQWU\RQDTXHXH,WUHWXUQVZKHQWKHTXHXH
LVQRWIXOODQGZKHQWKHTXHXHLVIXOO
TBH[DP
7KH TBH[DP V\VWHP WDVN SURYLGHV VWDWLVWLFDO LQIRUPDWLRQ DERXW DFWLYLW\ DW WKH TXHXH TBLG ,W UHWXUQV D YDOXH LQ
TBVWDWBYDOXHGHSHQGLQJRQWKHLQIRUPDWLRQUHTXHVWHGLQTBVWDWBFRGH7KHYDOXHVRITBVWDWBFRGHDQGWKHFRUUHVSRQG
LQJLQIRUPDWLRQUHWXUQHGLQTBVWDWBYDOXHDUHGHVFULEHGLQ7DEOH
7DEOH³7KHLQIRUPDWLRQUHFHLYHGLQTBVWDWBYDOXH
9DOXHUHTXHVWHGLQ
TBVWDWBFRGH
6HFWLRQ
,QIRUPDWLRQUHFHLYHGEDFN
IURPTBVWDWBYDOXH
&XUUHQWTXHXHOHQJWK
0HDQLQWHUDUULYDOWLPH
0D[LPXPTXHXHOHQJWK
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³7KHLQIRUPDWLRQUHFHLYHGLQTBVWDWBYDOXHFRQWLQXHG
9DOXHUHTXHVWHGLQ
TBVWDWBFRGH
,QIRUPDWLRQUHFHLYHGEDFN
IURPTBVWDWBYDOXH
6KRUWHVWZDLWWLPHHYHU
/RQJHVWZDLWWLPHIRUMREVVWLOOLQWKH
TXHXH
$YHUDJHZDLWWLPHLQWKHTXHXH
6WDWXVFRGHV
$OORIWKHTXHXHPDQDJHPHQWWDVNVDQGIXQFWLRQVUHWXUQDQRXWSXWVWDWXVSDUDPHWHU7KHVWDWXVSDUDPHWHUYDOXHVDQG
FRUUHVSRQGLQJLQIRUPDWLRQDUHGHVFULEHGLQ7DEOH
7DEOH³7KHVWDWXVSDUDPHWHUYDOXHVDQGFRUUHVSRQGLQJLQIRUPDWLRQ
6WDWXVSDUDPHWHU
9DOXHV
:KDWLWPHDQV
2.
4XHXHIXOOFDQQRWDGG
8QGHÀQHGTBLG
4XHXHHPSW\FDQQRWUHPRYH
8QVXSSRUWHGTXHXHW\SHFDQQRWFUHDWHTXHXH
6SHFLÀHGOHQJWK FDQQRWFUHDWHTXHXH
'XSOLFDWHTBLGFDQQRWFUHDWHTXHXH
1RWHQRXJKPHPRU\FDQQRWFUHDWHTXHXH
6LPXODWLRQWLPHV\VWHPIXQFWLRQV
7KHIROORZLQJV\VWHPIXQFWLRQVSURYLGHDFFHVVWRFXUUHQWVLPXODWLRQWLPH
WLPH
VWLPH
UHDOWLPH
WLPH
6\QWD[
LQWHJHUWLPH
7KHWLPHV\VWHPIXQFWLRQUHWXUQVDQLQWHJHUWKDWLVDELWWLPHVFDOHGWRWKHWLPHVFDOHXQLWRIWKHPRGXOHWKDW
LQYRNHGLW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
([DPSOH
CWLPHVFDOHQVQV
PRGXOHWHVW
UHJVHW
SDUDPHWHUS LQLWLDOEHJLQ
PRQLWRUWLPHVHW VHW
SVHW SVHW HQG
HQGPRGXOH
7KHRXWSXWIURPWKLVH[DPSOHLVDVIROORZV
VHW [
VHW VHW ,QWKLVH[DPSOHWKHUHJVHWLVDVVLJQHGWKHYDOXHDWVLPXODWLRQWLPHQVDQGWKHYDOXHDWVLPXODWLRQWLPHQV
1RWHWKDWWKHVHWLPHVGRQRWPDWFKWKHWLPHVUHSRUWHGE\WLPH7KHWLPHYDOXHVUHWXUQHGE\WKHWLPHV\VWHPIXQF
WLRQDUHGHWHUPLQHGE\WKHIROORZLQJVWHSV
D
7KHVLPXODWLRQWLPHVQVDQGQVDUHVFDOHGWRDQGEHFDXVHWKHWLPHXQLWIRUWKHPRGXOHLVQVVR
WLPHYDOXHVUHSRUWHGE\WKLVPRGXOHDUHPXOWLSOHVRIQV
E
7KHYDOXHLVURXQGHGWRDQGLVURXQGHGWREHFDXVHWKHWLPHV\VWHPIXQFWLRQUHWXUQVDQLQWHJHU
7KHWLPHSUHFLVLRQGRHVQRWFDXVHURXQGLQJRIWKHVHYDOXHV
VWLPH
6\QWD[
LQWHJHUVWLPH
7KHVWLPHV\VWHPIXQFWLRQUHWXUQVDQXQVLJQHGLQWHJHUWKDWLVDELWWLPHVFDOHGWRWKHWLPHVFDOHXQLWRIWKHPRG
XOHWKDWLQYRNHGLW,IWKHDFWXDOVLPXODWLRQWLPHGRHVQRWÀWLQELWVWKHORZRUGHUELWVRIWKHFXUUHQWVLPXODWLRQ
WLPHDUHUHWXUQHG
UHDOWLPH
6\QWD[
UHDOUHDOWLPH
7KHUHDOWLPHV\VWHPIXQFWLRQUHWXUQVDUHDOQXPEHUWLPHWKDWOLNHWLPHLVVFDOHGWRWKHWLPHXQLWRIWKHPRGXOH
WKDWLQYRNHGLW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
CWLPHVFDOHQVQV
PRGXOHWHVW
UHJVHW
SDUDPHWHUS LQLWLDOEHJLQ
PRQLWRUUHDOWLPHVHW VHW
SVHW SVHW HQG
HQGPRGXOH
7KHRXWSXWIURPWKLVH[DPSOHLVDVIROORZV
VHW [
VHW VHW ,QWKLVH[DPSOHWKHHYHQWWLPHVLQWKHUHJLVWHUVHWDUHPXOWLSOHVRIQVEHFDXVHQVLVWKHWLPHXQLWRIWKHPRG
XOH7KH\DUHUHDOQXPEHUVEHFDXVHUHDOWLPHUHWXUQVDUHDOQXPEHU
&RQYHUVLRQIXQFWLRQVIRUUHDOV
7KHIROORZLQJIXQFWLRQVKDQGOHUHDOYDOXHV
6\QWD[
LQWHJHU
UHDO
>@
UHDO
UWRLUHDOBYDO
LWRULQWBYDO
UHDOWRELWVUHDOBYDO
ELWVWRUHDOELWBYDO
UWRLFRQYHUWVUHDOYDOXHVWRLQWHJHUVE\WUXQFDWLQJWKHUHDOYDOXHIRUH[DPSOHEHFRPHV
LWRUFRQYHUWVLQWHJHUVWRUHDOYDOXHVIRUH[DPSOHEHFRPHV
UHDOWRELWVSDVVHVELWSDWWHUQVDFURVVPRGXOHSRUWVFRQYHUWVIURPDUHDOQXPEHUWRWKHELWUHSUHVHQWDWLRQYHFWRU
RIWKDWUHDOQXPEHU
ELWVWRUHDOLVWKHUHYHUVHRIUHDOWRELWVFRQYHUWVIURPWKHELWSDWWHUQWRDUHDOQXPEHU
7KHUHDOQXPEHUVDFFHSWHGRUJHQHUDWHGE\WKHVHIXQFWLRQVVKDOOFRQIRUPWRWKH,(((6WG>%@UHSUHVHQWD
WLRQRIWKHUHDOQXPEHU7KHFRQYHUVLRQVKDOOURXQGWKHUHVXOWWRWKHQHDUHVWYDOLGUHSUHVHQWDWLRQ
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVKRZWKHUHDOWRELWVDQGELWVWRUHDOIXQFWLRQVDUHXVHGLQSRUWFRQQHFWLRQV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PRGXOHGULYHUQHWBU
RXWSXWQHWBU
UHDOU
ZLUH>@QHWBU UHDOWRELWVU
HQGPRGXOH
PRGXOHUHFHLYHUQHWBU
LQSXWQHWBU
ZLUH>@QHWBU
UHDOU
LQLWLDODVVLJQU ELWVWRUHDOQHWBU
HQGPRGXOH
3UREDELOLVWLFGLVWULEXWLRQIXQFWLRQV
7KHUHDUHDVHWRIUDQGRPQXPEHUJHQHUDWRUVWKDWUHWXUQLQWHJHUYDOXHVGLVWULEXWHGDFFRUGLQJWRVWDQGDUGSUREDELOLVWLF
IXQFWLRQV
UDQGRPIXQFWLRQ
6\QWD[
UDQGRP>VHHG@
7KHV\VWHPIXQFWLRQUDQGRPSURYLGHVDPHFKDQLVPIRUJHQHUDWLQJUDQGRPQXPEHUV7KHIXQFWLRQUHWXUQVDQHZ
ELWUDQGRPQXPEHUHDFKWLPHLWLVFDOOHG7KHUDQGRPQXPEHULVDVLJQHGLQWHJHULWFDQEHSRVLWLYHRUQHJDWLYH)RU
IXUWKHULQIRUPDWLRQRQSUREDELOLVWLFUDQGRPQXPEHUJHQHUDWRUVVHH
7KHVHHGSDUDPHWHUFRQWUROVWKHQXPEHUVWKDWUDQGRPUHWXUQV7KHVHHGSDUDPHWHUVKDOOEHHLWKHUDUHJLVWHUDQ
LQWHJHURUDWLPHYDULDEOH7KHVHHGYDOXHVKRXOGEHDVVLJQHGWRWKLVYDULDEOHSULRUWRFDOOLQJUDQGRP
([DPSOHV
([DPSOH³:KHUHELVJUHDWHUWKDQWKHH[SUHVVLRQUDQGRPEJLYHVDQXPEHULQWKHIROORZLQJUDQJH>
EE@7KHIROORZLQJFRGHIUDJPHQWVKRZVDQH[DPSOHRIUDQGRPQXPEHUJHQHUDWLRQEHWZHHQDQG
UHJ>@UDQG
UDQG UDQGRP
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVKRZDGGLQJWKHFRQFDWHQDWLRQRSHUDWRUWRWKHSUHFHGLQJH[DPSOHJLYHV
UDQGDSRVLWLYHYDOXHIURPWR
UHJ>@UDQG
UDQG ^UDQGRP`
6HFWLRQ
,(((
6WG
GLVWBIXQFWLRQV
GLVWBXQLIRUPVHHGVWDUWHQG
GLVWBQRUPDOVHHGPHDQVWDQGDUGBGHYLDWLRQ
GLVWBH[SRQHQWLDOVHHGPHDQ
GLVWBSRLVVRQVHHGPHDQ
GLVWBFKLBVTXDUHVHHGGHJUHHBRIBIUHHGRP
GLVWBWVHHGGHJUHHBRIBIUHHGRP
GLVWBHUODQJVHHGNBVWDJHPHDQ
6\QWD[³6\QWD[IRUWKHSUREDELOLVWLFGLVWULEXWLRQIXQFWLRQV
$OOSDUDPHWHUVWRWKHV\VWHPIXQFWLRQVDUHLQWHJHUYDOXHV)RUWKHH[SRQHQWLDOSRLVVRQFKLVTXDUHWDQG
HUODQJIXQFWLRQVWKHSDUDPHWHUVPHDQGHJUHHRIIUHHGRPDQGNBVWDJHVKDOOEHJUHDWHUWKDQ
(DFKRIWKHVHIXQFWLRQVUHWXUQVDSVHXGRUDQGRPQXPEHUZKRVHFKDUDFWHULVWLFVDUHGHVFULEHGE\WKHIXQFWLRQQDPH
7KDWLVGLVWBXQLIRUPUHWXUQVUDQGRPQXPEHUVXQLIRUPO\GLVWULEXWHGLQWKHLQWHUYDOVSHFLÀHGE\LWVSDUDPHWHUV
)RUHDFKV\VWHPIXQFWLRQWKHVHHGSDUDPHWHULVDQLQRXWSDUDPHWHUWKDWLVDYDOXHLVSDVVHGWRWKHIXQFWLRQDQGDGLI
IHUHQWYDOXHLVUHWXUQHG7KHV\VWHPIXQFWLRQVZLOODOZD\VUHWXUQWKHVDPHYDOXHJLYHQWKHVDPHVHHG7KLVIDFLOLWDWHV
GHEXJJLQJE\PDNLQJWKHRSHUDWLRQRIWKHV\VWHPUHSHDWDEOH7KHDUJXPHQWIRUWKHVHHGSDUDPHWHUVKRXOGEHDQLQWH
JHUYDULDEOHWKDWLVLQLWLDOL]HGE\WKHXVHUDQGRQO\XSGDWHGE\WKHV\VWHPIXQFWLRQ7KLVZLOOHQVXUHWKDWWKHGHVLUHG
GLVWULEXWLRQLVDFKLHYHG
,QWKHGLVWBXQLIRUPIXQFWLRQWKHVWDUWDQGHQGSDUDPHWHUVDUHLQWHJHULQSXWVWKDWERXQGWKHYDOXHVUHWXUQHG7KH
VWDUWYDOXHVKRXOGEHVPDOOHUWKDQWKHHQGYDOXH
7KHPHDQSDUDPHWHUXVHGE\GLVWBQRUPDOGLVWBH[SRQHQWLDOGLVWBSRLVVRQDQGGLVWBHUODQJLVDQLQWHJHULQSXW
WKDWFDXVHVWKHDYHUDJHYDOXHUHWXUQHGE\WKHIXQFWLRQWRDSSURDFKWKHYDOXHVSHFLÀHG
7KHVWDQGDUGGHYLDWLRQSDUDPHWHUXVHGZLWKWKHGLVWBQRUPDOIXQFWLRQLVDQLQWHJHULQSXWWKDWKHOSVGHWHUPLQHWKH
VKDSHRIWKHGHQVLW\IXQFWLRQ/DUJHUQXPEHUVIRUVWDQGDUGGHYLDWLRQZLOOVSUHDGWKHUHWXUQHGYDOXHVRYHUDZLGHU
UDQJH
7KHGHJUHHRIIUHHGRPSDUDPHWHUXVHGZLWKWKHGLVWBFKLBVTXDUHDQGGLVWBWIXQFWLRQVLVDQLQWHJHULQSXWWKDWKHOSV
GHWHUPLQHWKHVKDSHRIWKHGHQVLW\IXQFWLRQ/DUJHUQXPEHUVZLOOVSUHDGWKHUHWXUQHGYDOXHVRYHUDZLGHUUDQJH
6HFWLRQ
,(((
6WG
6HFWLRQ
9DOXHFKDQJHGXPS9&'ÀOH
$YDOXHFKDQJHGXPS9&'ÀOHFRQWDLQVLQIRUPDWLRQDERXWYDOXHFKDQJHVRQVHOHFWHGYDULDEOHVLQWKHGHVLJQVWRUHG
E\YDOXHFKDQJHGXPSV\VWHPWDVNV
7KLVVHFWLRQGHVFULEHVKRZWRJHQHUDWHD9&'ÀOHDQGLWVIRUPDW
&UHDWLQJWKHYDOXHFKDQJHGXPSILOH
7KHVWHSVLQYROYHGLQFUHDWLQJWKH9&'ÀOHDUHOLVWHGEHORZDQGLOOXVWUDWHGLQ)LJXUH
9&')LOH
9HULORJ6RXUFH)LOH
GXPSGXPS
LQLWLDO
+HDGHU
,QIRUPDWLRQ
GXPSILOH´GXPSGXPSµ
VLPXODWLRQ
GXPSYDUV
1RGH
,QIRUPDWLRQ
8VHU
3RVWSURFHVVLQJ
9DOXH
&KDQJHV
)LJXUH³&UHDWLQJWKH9&'ILOH
D
,QVHUW WKH 9&' V\VWHP WDVNV LQ WKH 9HULORJ VRXUFH ÀOH WR GHÀQH WKH GXPS ÀOH QDPH DQG WR VSHFLI\ WKH
YDULDEOHVWREHGXPSHG
E
5XQWKHVLPXODWLRQ
$9&'ÀOHLVDQ$6&,,ÀOHWKDWFRQWDLQVKHDGHULQIRUPDWLRQYDULDEOHGHÀQLWLRQVDQGWKHYDOXHFKDQJHVIRUDOOYDUL
DEOHVVSHFLÀHGLQWKHWDVNFDOOV
6HYHUDOV\VWHPWDVNVFDQEHLQVHUWHGLQWKHVRXUFHGHVFULSWLRQWRFUHDWHDQGFRQWUROWKH9&'ÀOH
6SHFLI\LQJWKHQDPHRIWKHGXPSÀOHGXPSÀOH
7KHGXPSILOHWDVNVKDOOEHXVHGWRVSHFLI\WKHQDPHRIWKH9&'ÀOH7KHV\QWD[IRUWKHWDVNLVDVIROORZV
GXPSILOHÀOHQDPH
7KHÀOHQDPHLVRSWLRQDO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
LQLWLDOGXPSILOHPRGXOHGXPS
6SHFLI\LQJWKHYDULDEOHVWREHGXPSHGGXPSYDUV
7KHGXPSYDUVWDVNVKDOOEHXVHGWROLVWZKLFKYDULDEOHVWRGXPSLQWRWKHÀOHVSHFLÀHGE\GXPSILOH7KHGXPS
YDUVWDVNPD\EHLQYRNHGDVRIWHQDVGHVLUHGWKURXJKRXWWKHPRGHOIRUH[DPSOHZLWKLQYDULRXVEORFNVEXWWKHH[H
FXWLRQRIDOOWKHGXPSYDUVWDVNVVKDOOEHDWWKHVDPHVLPXODWLRQWLPH
7KH GXPSYDUVWDVNPD\EHXVHGZLWKRUZLWKRXWDUJXPHQWV7KHV\QWD[IRUWKHWDVNZLWKRXWDUJXPHQWVLVDVIRO
ORZV
GXPSYDUV
:KHQLQYRNHGZLWKQRDUJXPHQWVGXPSYDUVWDVNGXPSVDOOWKHYDULDEOHVLQWKHPRGHOWRWKH9&'ÀOH
7KHV\QWD[IRUWKHWDVNZLWKDUJXPHQWVLVJLYHQLQ6\QWD[
GXPSYDUVOHYHOV>OLVWBRIBPRGXOHVBRUBYDULDEOHV@
OLVWBRIBPRGXOHVBRUBYDULDEOHV PRGXOHBRUBYDULDEOH^PRGXOHBRUBYDULDEOH`
PRGXOHBRUBYDULDEOH PRGXOHBLGHQWLILHU_YDULDEOHBLGHQWLILHU
6\QWD[³6\QWD[IRUGXPSYDUVV\VWHPWDVN
:KHQWKHGXPSYDUVWDVNLVVSHFLÀHGZLWKDUJXPHQWVWKHÀUVWDUJXPHQWLQGLFDWHVKRZPDQ\OHYHOVRIWKHKLHUDUFK\
EHORZHDFKVSHFLÀHGPRGXOHLQVWDQFHWRGXPSWRWKH9&'ÀOH6XEVHTXHQWDUJXPHQWVVSHFLI\ZKLFKVFRSHVRIWKH
PRGHOWRGXPSWRWKH9&'ÀOH7KHVHDUJXPHQWVPD\VSHFLI\HQWLUHPRGXOHVRULQGLYLGXDOYDULDEOHVZLWKLQDPRGXOH
6HWWLQJWKHÀUVWDUJXPHQWWR FDXVHVDGXPSRIDOOYDULDEOHVLQWKHVSHFLÀHGPRGXOHDQGLQDOOPRGXOHLQVWDQFHV
EHORZWKHVSHFLÀHGPRGXOH7KHDUJXPHQWDSSOLHVRQO\WRVXEVHTXHQWDUJXPHQWVWKDWVSHFLI\PRGXOHLQVWDQFHVDQG
QRWWRLQGLYLGXDOYDULDEOHV
([DPSOHV
([DPSOH
GXPSYDUVWRS
%HFDXVHWKHÀUVWDUJXPHQWLVDWKLVLQYRFDWLRQGXPSVDOOYDULDEOHVZLWKLQWKHPRGXOHWRSLWGRHVQRWGXPSYDUL
DEOHVLQDQ\RIWKHPRGXOHVLQVWDQWLDWHGE\PRGXOHWRS
([DPSOH
GXPSYDUVWRS
,QWKLVH[DPSOHWKH GXPSYDUVWDVNZLOOGXPSDOOYDULDEOHVLQWKHPRGXOH WRSDQGLQDOOPRGXOHLQVWDQFHVEHORZ
PRGXOHWRSLQWKHKLHUDUFK\
([DPSOH
7KLVH[DPSOHVKRZVKRZWKHGXPSYDUVWDVNFDQVSHFLI\ERWKPRGXOHVDQGLQGLYLGXDOYDULDEOHV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
GXPSYDUVWRSPRGWRSPRGQHW
7KLVFDOOZLOOGXPSDOOYDULDEOHVLQPRGXOHPRGDQGLQDOOPRGXOHLQVWDQFHVEHORZPRGDORQJZLWKYDULDEOHQHW
LQPRGXOHPRG7KHDUJXPHQWDSSOLHVRQO\WRWKHPRGXOHLQVWDQFHWRSPRGDQGQRWWRWKHLQGLYLGXDOYDULDEOH
WRSPRGQHW
6WRSSLQJDQGUHVXPLQJWKHGXPSGXPSRIIGXPSRQ
([HFXWLQJWKH GXPSYDUVWDVNFDXVHVWKHYDOXHFKDQJHGXPSLQJWRVWDUWDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPH
XQLW7R VXVSHQG WKH GXPS WKH GXPSRII WDVN PD\ EH LQYRNHG7R UHVXPH WKH GXPS WKH GXPSRQ WDVN PD\ EH
LQYRNHG7KHV\QWD[RIWKHVHWZRWDVNVLVDVIROORZV
GXPSRII
GXPSRQ
:KHQWKHGXPSRIIWDVNLVH[HFXWHGDFKHFNSRLQWLVPDGHLQZKLFKHYHU\VHOHFWHGYDULDEOHLVGXPSHGDVDQ[YDOXH
:KHQWKHGXPSRQWDVNLVODWHUH[HFXWHGHDFKYDULDEOHLVGXPSHGZLWKLWVYDOXHDWWKDWWLPH,QWKHLQWHUYDOEHWZHHQ
GXPSRIIDQGGXPSRQQRYDOXHFKDQJHVDUHGXPSHG
7KH GXPSRIIDQG GXPSRQWDVNVSURYLGHWKHPHFKDQLVPWRFRQWUROWKHVLPXODWLRQSHULRGGXULQJZKLFKWKHGXPS
ZLOOWDNHSODFH
([DPSOH
LQLWLDOEHJLQ
GXPSYDUV
GXPSRII
GXPSRQ
GXPSRII
HQG
7KLVH[DPSOHVWDUWVWKHYDOXHFKDQJHGXPSDIWHUWLPHXQLWVVWRSVLWWLPHXQLWVODWHUDWWLPHUHVWDUWVLW
DJDLQWLPHXQLWVODWHUDWWLPHDQGVWRSVLWWLPHXQLWVODWHUDWWLPH
*HQHUDWLQJDFKHFNSRLQWGXPSDOO
7KH GXPSDOOWDVNFUHDWHVDFKHFNSRLQWLQWKH9&'ÀOHWKDWVKRZVWKHFXUUHQWYDOXHRIDOOVHOHFWHGYDULDEOHV7KH
V\QWD[LVDVIROORZV
GXPSDOO
:KHQGXPSLQJLVHQDEOHGWKHYDOXHFKDQJHGXPSHUUHFRUGVWKHYDOXHVRIWKHYDULDEOHVWKDWFKDQJHGXULQJHDFKWLPH
LQFUHPHQW9DOXHVRIYDULDEOHVWKDWGRQRWFKDQJHGXULQJDWLPHLQFUHPHQWDUHQRWGXPSHG
/LPLWLQJWKHVL]HRIWKHGXPSÀOHGXPSOLPLW
7KHGXPSOLPLWWDVNPD\EHXVHGWRVHWWKHVL]HRIWKH9&'ÀOH7KHV\QWD[IRUWKLVWDVNLVDVIROORZV
GXPSOLPLWÀOHVL]H
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH ÀOHVL]HDUJXPHQWWKDWVSHFLÀHVWKHPD[LPXPVL]HRIWKH9&'ÀOHLQE\WHV:KHQWKHVL]HRI9&'ÀOHUHDFKHV
WKLVQXPEHURIE\WHVWKHGXPSLQJVWRSVDQGDFRPPHQWLVLQVHUWHGLQWKH9&'ÀOHLQGLFDWLQJWKDWWKHGXPSOLPLWZDV
UHDFKHG
5HDGLQJWKHGXPSÀOHGXULQJVLPXODWLRQGXPSÁXVK
7KHGXPSIOXVKWDVNPD\EHXVHGWRHPSW\WKH9&'ÀOHEXIIHURIWKHRSHUDWLQJV\VWHPWRHQVXUHWKDWDOOWKHGDWDLQ
WKDWEXIIHULVVWRUHGLQWKH9&'ÀOH$IWHUH[HFXWLQJD GXPSIOXVK WDVNGXPSLQJLVUHVXPHGDVEHIRUHVRWKDWQR
YDOXHFKDQJHVDUHORVW
7KHV\QWD[LVDVIROORZV
GXPSIOXVK
$FRPPRQDSSOLFDWLRQLVWRFDOOGXPSIOXVKWRXSGDWHWKHGXPSÀOHVRWKDWDQDSSOLFDWLRQSURJUDPFDQUHDGWKH
9&'ÀOHGXULQJDVLPXODWLRQ
([DPSOHV
([DPSOH³7KLVH[DPSOHVKRZVKRZWKHGXPSIOXVKWDVNPD\EHXVHGLQD9HULORJ+'/VRXUFHÀOH
LQLWLDOEHJLQ
GXPSYDUV
GXPSIOXVK
DSSOLFDWLRQVSURJUDP
HQG
([DPSOH³7KHIROORZLQJLVDVLPSOHVRXUFHGHVFULSWLRQH[DPSOHWRSURGXFHD9&'ÀOH
,QWKLVH[DPSOHWKHQDPHRIWKHGXPSÀOHLVYHULORJGXPS,WGXPSVYDOXHFKDQJHVIRUDOOYDULDEOHVLQWKHPRGHO
'XPSLQJEHJLQVZKHQDQHYHQWGRBGXPSRFFXUV7KHGXPSLQJFRQWLQXHVIRUFORFNF\FOHVWKHQVWRSVDQGZDLWV
IRUWKHHYHQWGRBGXPSWREHWULJJHUHGDJDLQ$WHYHU\WLPHVWHSVWKHFXUUHQWYDOXHVRIDOO9&'YDULDEOHVDUH
GXPSHG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
PRGXOHGXPS
HYHQWGRBGXPS
LQLWLDOGXPSILOHYHULORJGXPS
LQLWLDO#GRBGXPS
GXPSYDUV
GXPSYDULDEOHVLQWKHGHVLJQ
DOZD\V#GRBGXPS WREHJLQWKHGXPSDWHYHQWGRBGXPS
EHJLQ
GXPSRQ
QRHIIHFWWKHILUVWWLPHWKURXJK
UHSHDW#SRVHGJHFORFNGXPSIRUF\FOHV
GXPSRII
VWRSWKHGXPS
HQG
LQLWLDO#GRBGXPS
IRUHYHUGXPSDOOFKHFNSRLQWDOOYDULDEOHV
HQGPRGXOH
)RUPDWRIWKH9&'ILOH
7KHGXPSÀOHLVVWUXFWXUHGLQDIUHHIRUPDW:KLWHVSDFHLVXVHGWRVHSDUDWHFRPPDQGVDQGWRPDNHWKHÀOHHDVLO\
UHDGDEOHE\DWH[WHGLWRU
6\QWD[RIWKH9&'ÀOH
7KHV\QWD[RIWKH9&'ÀOHLVJLYHQLQ6\QWD[
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YDOXHBFKDQJHBGXPSBGHILQLWLRQV ^GHFODUDWLRQBFRPPDQG`^VLPXODWLRQBFRPPDQG`
GHFODUDWLRQBFRPPDQG GHFODUDWLRQBNH\ZRUG>FRPPDQGBWH[W@HQG
VLPXODWLRQBFRPPDQG VLPXODWLRQBNH\ZRUG^YDOXHBFKDQJH`HQG
_FRPPHQW>FRPPHQWBWH[W@HQG
_VLPXODWLRQBWLPH
_YDOXHBFKDQJH
GHFODUDWLRQBNH\ZRUG FRPPHQW_GDWH_HQGGHILQLWLRQV_VFRSH_WLPHVFDOH_XSVFRSH_YDU_
YHUVLRQ
VLPXODWLRQBNH\ZRUG GXPSDOO_GXPSRII_GXPSRQ_GXPSYDUV
VLPXODWLRQBWLPH GHFLPDOBQXPEHU
YDOXHBFKDQJH VFDODUBYDOXHBFKDQJH
_YHFWRUBYDOXHBFKDQJH
VFDODUBYDOXHBFKDQJH YDOXHLQGHQWLILHUBFRGH
YDOXH __[_;_]_=
YHFWRUBYDOXHBFKDQJH EELQDU\BQXPEHULGHQWLILHUBFRGH
_%ELQDU\BQXPEHULGHQWLILHUBFRGH
_UUHDOBQXPEHULGHQWLILHUBFRGH
_5UHDOBQXPEHULGHQWLILHUBFRGH
6\QWD[³6\QWD[RIWKHRXWSXW9&'ILOH
7KH9&'ÀOHVWDUWVZLWKKHDGHULQIRUPDWLRQJLYLQJWKHGDWHWKHYHUVLRQQXPEHURIWKHVLPXODWRUXVHGIRUWKHVLPXOD
WLRQDQGWKHWLPHVFDOHXVHG1H[WWKHÀOHFRQWDLQVGHÀQLWLRQVRIWKHVFRSHDQGW\SHRIYDULDEOHVEHLQJGXPSHGIRO
ORZHGE\WKHDFWXDOYDOXHFKDQJHVDWHDFKVLPXODWLRQWLPHLQFUHPHQW2QO\WKHYDULDEOHVWKDWFKDQJHYDOXHGXULQJD
WLPHLQFUHPHQWDUHOLVWHG
7KHVLPXODWLRQWLPHUHFRUGHGLQ9&'ÀOHLVWKHDEVROXWHYDOXHRIWKHVLPXODWLRQWLPHIRUWKHFKDQJHVLQYDULDEOHYDO
XHVWKDWIROORZ
9DOXHFKDQJHVIRUUHDOYDULDEOHVDUHVSHFLÀHGE\UHDOQXPEHUV9DOXHFKDQJHVIRUDOORWKHUYDULDEOHVDUHVSHFLÀHGLQ
ELQDU\IRUPDWE\[RU]YDOXHV6WUHQJWKLQIRUPDWLRQDQGPHPRULHVDUHQRWGXPSHG
$UHDOQXPEHULVGXPSHGXVLQJDJSULQWIIRUPDW7KLVSUHVHUYHVWKHSUHFLVLRQRIWKDWQXPEHUE\RXWSXW
WLQJDOOELWVLQWKHPDQWLVVDRIDELW,(((6WG>%@GRXEOHSUHFLVLRQQXPEHU$SSOLFDWLRQSURJUDPV
FDQUHDGDUHDOQXPEHUXVLQJDJIRUPDWWRVFDQI
7KHYDOXHFKDQJHGXPSHUJHQHUDWHVFKDUDFWHULGHQWLÀHUFRGHVWRUHSUHVHQWYDULDEOHV7KHLGHQWLÀHUFRGHLVDFRGH
FRPSRVHGRIWKHSULQWDEOHFKDUDFWHUVWKDWDUHLQWKH$6&,,FKDUDFWHUVHWIURPWRaGHFLPDOWR
127(6
³7KH9&'IRUPDWGRHVQRWVXSSRUWDPHFKDQLVPWRGXPSSDUWRIDYHFWRU)RUH[DPSOHELWVWRRIDELWYHFWRU
FDQQRWEHGXPSHGLQ9&'ÀOHLQVWHDGWKHHQWLUHYHFWRUKDVWREHGXPSHG,QDGGLWLRQH[SUHVVLRQVVXFKDVDEFDQQRWEH
GXPSHGLQWKH9&'ÀOH
³'DWDLQWKH9&'ÀOHLVFDVHVHQVLWLYH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
)RUPDWVRIYDULDEOHYDOXHV
9DULDEOHVPD\EHHLWKHUVFDODUVRUYHFWRUV(DFKW\SHLVGXPSHGLQLWVRZQIRUPDW'XPSVRIYDOXHFKDQJHVWRVFDODU
YDULDEOHVVKDOOQRWKDYHDQ\ZKLWHVSDFHEHWZHHQWKHYDOXHDQGWKHLGHQWLÀHUFRGH
'XPSVRIYDOXHFKDQJHVWRYHFWRUVVKDOOQRWKDYHDQ\ZKLWHVSDFHEHWZHHQWKHEDVHOHWWHUDQGWKHYDOXHGLJLWVEXW
WKH\VKDOOKDYHRQHZKLWHVSDFHEHWZHHQWKHYDOXHGLJLWVDQGWKHLGHQWLÀHUFRGH
7KHRXWSXWIRUPDWIRUHDFKYDOXHLVULJKWMXVWLÀHG9HFWRUYDOXHVDSSHDULQWKHVKRUWHVWIRUPSRVVLEOHUHGXQGDQWELW
YDOXHVWKDWUHVXOWIURPOHIWH[WHQGLQJYDOXHVWRÀOODSDUWLFXODUYHFWRUVL]HDUHHOLPLQDWHG
7KHUXOHVIRUOHIWH[WHQGLQJYHFWRUYDOXHVDUHJLYHQLQ7DEOH
7DEOH³5XOHVIRUOHIWH[WHQGLQJYHFWRUYDOXHV
:KHQWKHYDOXHLV
9&'OHIWH[WHQGVZLWK
=
=
;
;
7DEOHVKRZVKRZWKH9&'PD\VKRUWHQYDOXHV
7DEOH³+RZWKH9&'PD\VKRUWHQYDOXHV
7KHELQDU\YDOXH
([WHQGVWRÀOOD
ELWUHJLVWHUDV
$SSHDUVLQWKH
9&'ÀOHDV
E
;
;;
E;
=;
==;
E=;
;
;
E;
(YHQWVDUHGXPSHGLQWKHVDPHIRUPDWDVVFDODUVIRUH[DPSOH)RUHYHQWVKRZHYHUWKHYDOXHLQWKLVH[DP
SOHLVLUUHOHYDQW2QO\WKHLGHQWLÀHUFRGHLQWKLVH[DPSOHLVVLJQLÀFDQW,WDSSHDUVLQWKH9&'ÀOHDVDPDUNHUWR
LQGLFDWHWKDWWKHHYHQWZDVWULJJHUHGGXULQJWKHWLPHVWHS
([DPSOHV
#1RVSDFHEHWZHHQWKHYDOXHDQGWKHLGHQWLILHUFRGH#
E[]N
6HFWLRQ
1RVSDFHEHWZHHQWKHEDQG[]
EXWDVSDFHEHWZHHQE[]DQGN
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
'HVFULSWLRQRINH\ZRUGFRPPDQGV
7KHJHQHUDOLQIRUPDWLRQLQWKH9&'ÀOHLVSUHVHQWHGDVDVHULHVRIVHFWLRQVVXUURXQGHGE\NH\ZRUGV.H\ZRUGFRP
PDQGVSURYLGHDPHDQVRILQVHUWLQJLQIRUPDWLRQLQWKH9&'ÀOH.H\ZRUGFRPPDQGVFDQEHLQVHUWHGHLWKHUE\WKH
GXPSHURUPDQXDOO\
7KLVVXEFODXVHGHDOVZLWKWKHNH\ZRUGFRPPDQGVJLYHQLQ7DEOH
7DEOH³.H\ZRUGFRPPDQGV
'HFODUDWLRQNH\ZRUGV
6LPXODWLRQNH\ZRUGV
FRPPHQW
WLPHVFDOH
GXPSDOO
GDWH
XSVFRSH
GXPSRII
HQGGHÀQLWLRQV
YDU
GXPSRQ
VFRSH
YHUVLRQ
GXPSYDUV
FRPPHQW
7KHFRPPHQWVHFWLRQSURYLGHVDPHDQVRILQVHUWLQJDFRPPHQWLQWKH9&'ÀOH
6\QWD[
FRPPHQWFRPPHQWBWH[WHQG
([DPSOHV
FRPPHQW7KLVLVDVLQJOHOLQHFRPPHQWHQG
FRPPHQW7KLVLVD
PXOWLSOHOLQHFRPPHQW
HQG
GDWH
7KHGDWHVHFWLRQLQGLFDWHVWKHGDWHRQZKLFKWKH9&'ÀOHZDVJHQHUDWHG
6\QWD[
GDWHGDWHBWH[WHQG
([DPSOH
GDWH
-XQH
HQG
HQGGHÀQLWLRQV
7KHHQGGHILQLWLRQVVHFWLRQPDUNVWKHHQGRIWKHKHDGHULQIRUPDWLRQDQGGHÀQLWLRQV
6\QWD[
HQGGHILQLWLRQVHQG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
VFRSH
7KHVFRSHVHFWLRQGHÀQHVWKHVFRSHRIWKHYDULDEOHVEHLQJGXPSHG
6\QWD[
VFRSHVFRSHBW\SHVFRSHBLGHQWLILHUHQG
VFRSHBW\SH PRGXOH_WDVN_IXQFWLRQ_EHJLQ_IRUN
7KHVFRSHW\SHLQGLFDWHVRQHRIWKHIROORZLQJVFRSHV
PRGXOH
WDVN
IXQFWLRQ
EHJLQ
IRUN
7RSOHYHOPRGXOHDQGPRGXOHLQVWDQFHV
7DVNV
)XQFWLRQV
1DPHGVHTXHQWLDOEORFNV
1DPHGSDUDOOHOEORFNV
([DPSOH
VFRSH
PRGXOHWRS
HQG
WLPHVFDOH
7KHWLPHVFDOHNH\ZRUGVSHFLÀHVZKDWWLPHVFDOHZDVXVHGIRUWKHVLPXODWLRQ
6\QWD[
WLPHVFDOHQXPEHUWLPHBXQLWHQG
QXPEHU __
WLPHBXQLW V_PV_XV_QV_SV_IV
([DPSOH
WLPHVFDOHQVHQG
XSVFRSH
7KHXSVFRSHVHFWLRQLQGLFDWHVDFKDQJHRIVFRSHWRWKHQH[WKLJKHUOHYHOLQWKHGHVLJQKLHUDUFK\
6\QWD[
XSVFRSHHQG
YHUVLRQ
7KHYHUVLRQVHFWLRQLQGLFDWHVZKLFKYHUVLRQRIWKH9&'ZULWHUZDVXVHGWRSURGXFHWKH9&'ÀOH
6\QWD[
YHUVLRQYHUVLRQBWH[WHQG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
([DPSOH
YHUVLRQ
9(5,/2*6,08/$725D
HQG
YDU
7KHYDUVHFWLRQSULQWVWKHQDPHVDQGLGHQWLÀHUFRGHVRIWKHYDULDEOHVEHLQJGXPSHG
6\QWD[
YDUYDUBW\SHVL]HLGHQWLILHUBFRGHUHIHUHQFHHQG
YDUBW\SH HYHQW_LQWHJHU_SDUDPHWHU_UHDO_UHJ_VXSSO\_VXSSO\_WLPH
_WUL_WULDQG_WULRU_WULUHJ_WUL_WUL_ZDQG_ZLUH_ZRU
VL]H GHFLPDOBQXPEHU
UHIHUHQFH LGHQWLILHU
_LGHQWLILHU>ELWBVHOHFWBLQGH[@
_LGHQWLILHU>PVEBLQGH[OVEBLQGH[@
LQGH[ GHFLPDOBQXPEHU
6L]HVSHFLÀHVKRZPDQ\ELWVDUHLQWKHYDULDEOH
7KHLGHQWLÀHUFRGHVSHFLÀHVWKHQDPHRIWKHYDULDEOHXVLQJSULQWDEOH$6&,,FKDUDFWHUVDVSUHYLRXVO\GHVFULEHG
D
7KHPVELQGH[LQGLFDWHVWKHPRVWVLJQLÀFDQWLQGH[WKHOVELQGH[LQGLFDWHVWKHOHDVWVLJQLÀFDQWLQGH[
E
0RUHWKDQRQHUHIHUHQFHQDPHPD\EHPDSSHGWRWKHVDPHLGHQWLÀHUFRGH)RUH[DPSOHQHWDQGQHWPD\
EHLQWHUFRQQHFWHGLQWKHFLUFXLWDQGWKHUHIRUHPD\KDYHWKHVDPHLGHQWLÀHUFRGH
F
7KHLQGLYLGXDOELWVRIYHFWRUQHWVPD\EHGXPSHGLQGLYLGXDOO\
G
7KHLGHQWLÀHULVWKHQDPHRIWKHYDULDEOHEHLQJGXPSHGLQWKHPRGHO
([DPSOH
YDU
LQWHJHULQGH[
HQG
GXPSDOO
7KHGXPSDOONH\ZRUGVSHFLÀHVFXUUHQWYDOXHVRIDOOYDULDEOHVGXPSHG
6\QWD[
GXPSDOO^YDOXHBFKDQJHV`HQG
([DPSOH
GXPSDOO#[E[NHQG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
GXPSRII
7KHGXPSRIINH\ZRUGLQGLFDWHVDOOYDULDEOHVGXPSHGZLWK;YDOXHV
6\QWD[
GXPSRII^YDOXHBFKDQJHV`HQG
([DPSOH
GXPSRII[#[[E[NHQG
GXPSRQ
7KHGXPSRQNH\ZRUGLQGLFDWHVUHVXPSWLRQRIGXPSLQJDQGOLVWVFXUUHQWYDOXHVRIDOOYDULDEOHVGXPSHG
6\QWD[
GXPSRQ^YDOXHBFKDQJHV`HQG
([DPSOH
GXPSRQ[#[ENHQG
GXPSYDUV
7KHVHFWLRQEHJLQQLQJZLWKGXPSYDUVNH\ZRUGOLVWVLQLWLDOYDOXHVRIDOOYDULDEOHVGXPSHG
6\QWD[
GXPSYDUV^YDOXHBFKDQJHV`HQG
([DPSOH
GXPSYDUV[#]ENHQG
6HFWLRQ
,(((
6WG
9&'ÀOHIRUPDWH[DPSOH
7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHIRUPDWRIWKH9&'ÀOH
GDWH
-XQH
HQG
YHUVLRQ
9(5,/2*6,08/$725D
HQG
WLPHVFDOH
QV
HQG
VFRSHPRGXOHWRSHQG
VFRSHPRGXOHPHQG
YDUWULUHJ#QHWHQG
YDUWULUHJQHWHQG
YDUWULUHJQHWHQG
XSVFRSHHQG
VFRSHWDVNWHQG
YDUUHJNDFFXPXODWRU>@HQG
YDULQWHJHU^LQGH[HQG
XSVFRSHHQG
XSVFRSHHQG
HQGGHILQLWLRQVHQG
FRPPHQW
1RWHGXPSYDUVZDVH[HFXWHGDWWLPH··
$OOLQLWLDOYDOXHVDUHGXPSHGDWWKLVWLPH
HQG
GXPSYDUV
[#
[
[
E[N
E[^
HQG
#
E][[N
E][^
E]N
GXPSDOO#
&RQWLQXHGLQULJKWFROXPQ
&RQWLQXHGIURPOHIWFROXPQ
E]N
E][^
HQG
GXPSRII
[#
[
[
E[N
E[^
HQG
GXPSRQ
]#
EN
E[^
HQG
6HFWLRQ
,(((
6WG
6HFWLRQ
&RPSLOHUGLUHFWLYHV
$OO9HULORJFRPSLOHUGLUHFWLYHVDUHSUHFHGHGE\WKHCFKDUDFWHU7KLVFKDUDFWHULVFDOOHGDFFHQWJUDYH,WLVGLIIHUHQW
IURPWKHFKDUDFWHU·ZKLFKLVWKHVLQJOHTXRWHFKDUDFWHU7KHVFRSHRIFRPSLOHUGLUHFWLYHVH[WHQGVIURPWKHSRLQW
ZKHUHLWLVSURFHVVHGDFURVVDOOÀOHVSURFHVVHGWRWKHSRLQWZKHUHDQRWKHUFRPSLOHUGLUHFWLYHVXSHUVHGHVLWRUWKHSUR
FHVVLQJFRPSOHWHV
7KLVVHFWLRQGHVFULEHVWKHIROORZLQJFRPSLOHUGLUHFWLYHV
CFHOOGHÀQH
CGHIDXOWBQHWW\SH
CGHÀQH
CHOVH
CHQGFHOOGHÀQH
CHQGLI
CLIGHI
CLQFOXGH
CQRXQFRQQHFWHGBGULYH
CUHVHWDOO
CWLPHVFDOH
CXQFRQQHFWHGBGULYH
CXQGHI
>@
>@
>@
>@
>@
>@
>@
>@
>@
>@
>@
>@
>@
CFHOOGHILQHDQGCHQGFHOOGHILQH
7KHGLUHFWLYHVCFHOOGHILQHDQGCHQGFHOOGHILQHWDJPRGXOHVDVFHOOPRGXOHV&HOOVDUHXVHGE\FHUWDLQ3/,URXWLQHVIRU
DSSOLFDWLRQVVXFKDVGHOD\FDOFXODWLRQV,WLVDGYLVDEOHWRSDLUHDFKCFHOOGHILQHZLWKDQCHQGFHOOGHILQH0RUHWKDQRQH
RIWKHVHSDLUVPD\DSSHDULQDVLQJOHVRXUFHGHVFULSWLRQ
7KHVHGLUHFWLYHVPD\DSSHDUDQ\ZKHUHLQWKHVRXUFHGHVFULSWLRQEXWLWLVUHFRPPHQGHGWKDWWKHGLUHFWLYHVEHVSHFL
ÀHGRXWVLGHWKHPRGXOHGHÀQLWLRQ
CGHIDXOWBQHWW\SH
7KHGLUHFWLYHCGHIDXOWBQHWW\SHFRQWUROVWKHQHWW\SHFUHDWHGIRULPSOLFLWQHWGHFODUDWLRQVVHH,WFDQEHXVHGRQO\
RXWVLGHRIPRGXOHGHÀQLWLRQV,WDIIHFWVDOOPRGXOHVWKDWIROORZWKHGLUHFWLYHHYHQDFURVVVRXUFHÀOHERXQGDULHV0XO
WLSOHCGHIDXOWBQHWW\SHGLUHFWLYHVDUHDOORZHG7KHODWHVWRFFXUUHQFHRIWKLVGLUHFWLYHLQWKHVRXUFHFRQWUROVWKHW\SHRI
QHWVWKDWZLOOEHLPSOLFLWO\GHFODUHG6\QWD[FRQWDLQVWKHV\QWD[RIWKHGLUHFWLYH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
GHIDXOWBQHWW\SHBFRPSLOHUBGLUHFWLYH
CGHIDXOWBQHWW\SHQHWBW\SH
QHWBW\SH ZLUH_WUL_WUL_ZDQG_WULDQG_WUL_ZRU_WULRU_WULUHJ
6\QWD[³6\QWD[IRUGHIDXOWQHWW\SHFRPSLOHUGLUHFWLYH
:KHQQRCGHIDXOWBQHWW\SHGLUHFWLYHLVSUHVHQWLPSOLFLWQHWVDUHRIW\SHZLUH
CGHILQHDQGCXQGHI
$WH[WPDFURVXEVWLWXWLRQIDFLOLW\KDVEHHQSURYLGHGVRWKDWPHDQLQJIXOQDPHVFDQEHXVHGWRUHSUHVHQWFRPPRQO\
XVHGSLHFHVRIWH[W)RUH[DPSOHLQWKHVLWXDWLRQZKHUHDFRQVWDQWQXPEHULVUHSHWLWLYHO\XVHGWKURXJKRXWDGHVFULS
WLRQDWH[WPDFURZRXOGEHXVHIXOLQWKDWRQO\RQHSODFHLQWKHVRXUFHGHVFULSWLRQZRXOGQHHGWREHDOWHUHGLIWKHYDOXH
RIWKHFRQVWDQWQHHGHGWREHFKDQJHG
CGHÀQH
7KHGLUHFWLYHCGHILQHFUHDWHVDPDFURIRUWH[WVXEVWLWXWLRQ7KLVGLUHFWLYHFDQEHXVHGERWKLQVLGHDQGRXWVLGHPRGXOH
GHÀQLWLRQV$IWHUDWH[WPDFURLVGHÀQHGLWFDQEHXVHGLQWKHVRXUFHGHVFULSWLRQE\XVLQJWKHCFKDUDFWHUIROORZHG
E\WKHPDFURQDPH7KHFRPSLOHUVKDOOVXEVWLWXWHWKHWH[WRIWKHPDFURIRUWKHVWULQJ CPDFURBQDPH$OOFRPSLOHU
GLUHFWLYHVVKDOOEHFRQVLGHUHGSUHGHÀQHGPDFURQDPHVLWVKDOOEHLOOHJDOWRUHGHÀQHDFRPSLOHUGLUHFWLYHDVDPDFUR
QDPH
$WH[WPDFURFDQEHGHÀQHGZLWKDUJXPHQWV7KLVDOORZVWKHPDFURWREHFXVWRPL]HGIRUHDFKXVHLQGLYLGXDOO\
7KHV\QWD[IRUWH[WPDFURGHÀQLWLRQVLVJLYHQLQ6\QWD[
WH[WBPDFURBGHILQLWLRQ
CGHILQHWH[WBPDFURBQDPHPDFURBWH[W
WH[WBPDFURBQDPH
WH[WBPDFURBLGHQWLILHU>OLVWBRIBIRUPDOBDUJXPHQWV@
OLVWBRIBIRUPDOBDUJXPHQWV IRUPDOBDUJXPHQWBLGHQWLILHU^IRUPDOBDUJXPHQWBLGHQWLILHU`
6\QWD[³6\QWD[IRUWH[WPDFURGHILQLWLRQ
7KHPDFURWH[WFDQEHDQ\DUELWUDU\WH[WVSHFLÀHGRQWKHVDPHOLQHDVWKHWH[WPDFURQDPH,IPRUHWKDQRQHOLQHLV
QHFHVVDU\WRVSHFLI\WKHWH[WWKHQHZOLQHVKDOOEHSUHFHGHGE\DEDFNVODVK?7KHÀUVWQHZOLQHQRWSUHFHGHGE\D
EDFNVODVKVKDOOHQGWKHPDFURWH[W7KHQHZOLQHSUHFHGHGE\DEDFNVODVKVKDOOEHUHSODFHGLQWKHH[SDQGHGPDFUR
ZLWKDQHZOLQHEXWZLWKRXWWKHSUHFHGLQJEDFNVODVKFKDUDFWHU
:KHQIRUPDODUJXPHQWVDUHXVHGWRGHÀQHDWH[WPDFURWKHVFRSHRIWKHIRUPDODUJXPHQWVKDOOH[WHQGXSWRWKHHQG
RIWKHPDFURWH[W$IRUPDODUJXPHQWFDQEHXVHGLQWKHPDFURWH[WLQWKHVDPHPDQQHUDVDQLGHQWLÀHU
,IDRQHOLQHFRPPHQWWKDWLVDFRPPHQWVSHFLÀHGZLWKWKHFKDUDFWHUVLVLQFOXGHGLQWKHWH[WWKHQWKHFRPPHQW
VKDOOQRWEHFRPHSDUWRIWKHVXEVWLWXWHGWH[W7KHPDFURWH[WFDQEHEODQNLQZKLFKFDVHWKHWH[WPDFURLVGHÀQHGWR
EHHPSW\DQGQRWH[WLVVXEVWLWXWHGZKHQWKHPDFURLVXVHG
7KHV\QWD[IRUXVLQJDWH[WPDFURLVJLYHQLQ6\QWD[
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
WH[WBPDFURBXVDJH CWH[WBPDFURBLGHQWLILHU>OLVWBRIBDFWXDOBDUJXPHQWV@
OLVWBRIBDFWXDOBDUJXPHQWV DFWXDOBDUJXPHQW^DFWXDOBDUJXPHQW`
DFWXDOBDUJXPHQW
H[SUHVVLRQ
6\QWD[³6\QWD[IRUWH[WPDFURXVDJH
)RUDPDFURZLWKRXWDUJXPHQWVWKHWH[WVKDOOEHVXEVWLWXWHG´DVLVµIRUHYHU\RFFXUUHQFHRICWH[WBPDFUR+RZHYHUD
WH[WPDFURZLWKRQHRUPRUHDUJXPHQWVVKDOOEHH[SDQGHGE\VXEVWLWXWLQJHDFKIRUPDODUJXPHQWZLWKWKHH[SUHVVLRQ
XVHGDVWKHDFWXDODUJXPHQWLQWKHPDFURXVDJH
2QFHDWH[WPDFURQDPHKDVEHHQGHÀQHGLWFDQEHXVHGDQ\ZKHUHLQDVRXUFHGHVFULSWLRQWKDWLVWKHUHDUHQRVFRSH
UHVWULFWLRQV7H[WPDFURVFDQEHGHÀQHGDQGXVHGLQWHUDFWLYHO\
7KHWH[WVSHFLÀHGIRUPDFURWH[WVKDOOQRWEHVSOLWDFURVVWKHIROORZLQJOH[LFDOWRNHQV
³
³
³
³
³
³
&RPPHQWV
1XPEHUV
6WULQJV
,GHQWLÀHUV
.H\ZRUGV
2SHUDWRUV
([DPSOHV
CGHILQHZRUGVL]H
UHJ>CZRUGVL]H@GDWD
GHILQHDQDQGZLWKYDULDEOHGHOD\
CGHILQHYDUBQDQGGO\QDQGGO\
CYDUBQDQGJTQQ
CYDUBQDQGJTQQ
7KHIROORZLQJLVLOOHJDOV\QWD[EHFDXVHLWLVVSOLWDFURVVDVWULQJ
CGHILQHILUVWBKDOIVWDUWRIVWULQJ
GLVSOD\CILUVWBKDOIHQGRIVWULQJ
127(6
³(DFKDFWXDODUJXPHQWLVVXEVWLWXWHGIRUWKHFRUUHVSRQGLQJIRUPDODUJXPHQWOLWHUDOO\7KHUHIRUHZKHQDQH[SUHVVLRQLVXVHGDV
DQDFWXDODUJXPHQWWKHH[SUHVVLRQZLOOEHVXEVWLWXWHGLQLWVHQWLUHW\7KLVPD\FDXVHDQH[SUHVVLRQWREHHYDOXDWHGPRUHWKDQRQFH
LIWKHIRUPDODUJXPHQWZDVXVHGPRUHWKDQRQFHLQWKHPDFURWH[W)RUH[DPSOH
CGHILQHPD[DED!E"DE
Q CPD[STUV
ZLOOH[SDQGDV
Q ST!UV"STUV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
+HUHWKHODUJHURIWKHWZRH[SUHVVLRQVSTDQGUVZLOOEHHYDOXDWHGWZLFH
³7KHZRUGGHÀQHLVNQRZQDVDFRPSLOHUGLUHFWLYHNH\ZRUGDQGLWLVQRWSDUWRIWKHQRUPDOVHWRINH\ZRUGV7KXVQRUPDOLGHQ
WLÀHUVLQD9HULORJ+'/VRXUFHGHVFULSWLRQFDQEHWKHVDPHDVFRPSLOHUGLUHFWLYHNH\ZRUGVDOWKRXJKWKLVLVQRWUHFRPPHQGHG
7KHIROORZLQJSUREOHPVVKRXOGEHFRQVLGHUHG
D
7H[WPDFURQDPHVPD\QRWEHWKHVDPHDVFRPSLOHUGLUHFWLYHNH\ZRUGV
E
7H[WPDFURQDPHVFDQUHXVHQDPHVEHLQJXVHGDVRUGLQDU\LGHQWLÀHUV)RUH[DPSOHVLJQDOBQDPHDQGCVLJQDOBQDPH
DUHGLIIHUHQW
F
5HGHÀQLWLRQRIWH[WPDFURVLVDOORZHGWKHODWHVWGHÀQLWLRQRIDSDUWLFXODUWH[WPDFURUHDGE\WKHFRPSLOHUSUHYDLOVZKHQ
WKHPDFURQDPHLVHQFRXQWHUHGLQWKHVRXUFHWH[W
CXQGHI
7KHGLUHFWLYHCXQGHIVKDOOXQGHÀQHDSUHYLRXVO\GHÀQHGWH[WPDFUR$QDWWHPSWWRXQGHÀQHDWH[WPDFURWKDWZDVQRW
SUHYLRXVO\GHÀQHGXVLQJDCGHILQHFRPSLOHUGLUHFWLYHFDQUHVXOWLQDZDUQLQJ7KHV\QWD[IRUCXQGHIFRPSLOHUGLUHF
WLYHLVJLYHQLQ6\QWD[
XQGHILQHBFRPSLOHUBGLUHFWLYH
CXQGHIWH[WBPDFURBQDPH
6\QWD[³6\QWD[IRUXQGHIFRPSLOHUGLUHFWLYH
$QXQGHÀQHGWH[WPDFURKDVQRYDOXH
CLIGHICHOVHCHQGLI
7KHVH FRQGLWLRQDO FRPSLODWLRQ FRPSLOHU GLUHFWLYHV DUH XVHG WR LQFOXGH RSWLRQDOO\ OLQHV RI D 9HULORJ +'/ VRXUFH
GHVFULSWLRQGXULQJFRPSLODWLRQ7KHCLIGHIFRPSLOHUGLUHFWLYHFKHFNVIRUWKHGHÀQLWLRQRIDYDULDEOHQDPH,IWKHYDUL
DEOHQDPHLVGHÀQHGWKHQWKHOLQHVIROORZLQJWKHCLIGHIGLUHFWLYHDUHLQFOXGHG,IWKHYDULDEOHQDPHLVQRWGHÀQHGDQG
DQCHOVHGLUHFWLYHH[LVWVWKHQWKLVVRXUFHLVFRPSLOHG
7KHVHGLUHFWLYHVPD\DSSHDUDQ\ZKHUHLQWKHVRXUFHGHVFULSWLRQ
6LWXDWLRQVZKHUHWKHCLIGHICHOVHDQGCHQGLIFRPSLOHUGLUHFWLYHVPD\EHXVHIXOLQFOXGH
³ 6HOHFWLQJGLIIHUHQWUHSUHVHQWDWLRQVRIDPRGXOHVXFKDVEHKDYLRUDOVWUXFWXUDORUVZLWFKOHYHO
³ &KRRVLQJGLIIHUHQWWLPLQJRUVWUXFWXUDOLQIRUPDWLRQ
³ 6HOHFWLQJGLIIHUHQWVWLPXOXVIRUDJLYHQUXQ
7KHCLIGHICHOVHDQGCHQGLIFRPSLOHUGLUHFWLYHVKDYHWKHV\QWD[VKRZQLQ6\QWD[
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
FRQGLWLRQDOBFRPSLODWLRQBGLUHFWLYH
CLIGHIWH[WBPDFURBQDPH
ILUVWBJURXSBRIBOLQHV
>CHOVH
VHFRQGBJURXSBRIBOLQHV
CHQGLI@
6\QWD[³6\QWD[IRUFRQGLWLRQDOFRPSLODWLRQGLUHFWLYHV
7KHWH[WPDFURQDPHLVD9HULORJ+'/LGHQWLÀHU7KHÀUVWJURXSRIOLQHVDQGWKHVHFRQGJURXSRIOLQHVDUHSDUWVRID
9HULORJ+'/VRXUFHGHVFULSWLRQ7KHCHOVHFRPSLOHUGLUHFWLYHDQGWKHVHFRQGJURXSRIOLQHVDUHRSWLRQDO
7KHCLIGHICHOVHDQGCHQGLIFRPSLOHUGLUHFWLYHVZRUNLQWKHIROORZLQJPDQQHU
³ :KHQDQCLIGHILVHQFRXQWHUHGWKHWH[WPDFURQDPHLVWHVWHGWRVHHLILWLVGHÀQHGDVDWH[WPDFURQDPHXVLQJ
CGHILQHZLWKLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
³ ,IWKHWH[WPDFURQDPHLVGHÀQHGWKHÀUVWJURXSBRIBOLQHVLVFRPSLOHGDVSDUWRIWKHGHVFULSWLRQ,IWKHUHLVDQ
CHOVHFRPSLOHUGLUHFWLYHWKHVHFRQGJURXSRIOLQHVLVLJQRUHG
³ ,IWKHWH[WPDFURQDPHKDVQRWEHHQGHÀQHGWKHÀUVWJURXSRIOLQHVLVLJQRUHG,IWKHUHLVDQ CHOVHFRPSLOHU
GLUHFWLYHWKHVHFRQGJURXSRIOLQHVLVFRPSLOHG
127(6
³$Q\JURXSRIOLQHVWKDWWKHFRPSLOHULJQRUHVVWLOOKDVWRIROORZWKH9HULORJ+'/OH[LFDOFRQYHQWLRQVIRUZKLWHVSDFHFRPPHQWV
QXPEHUVVWULQJVLGHQWLÀHUVNH\ZRUGVDQGRSHUDWRUV
³7KHVHFRPSLOHUGLUHFWLYHVPD\EHQHVWHG
([DPSOHV
([DPSOH³7KHH[DPSOHEHORZVKRZVDVLPSOHXVDJHRIDQCLIGHIGLUHFWLYHIRUFRQGLWLRQDOFRPSLODWLRQ,IWKHLGHQWL
ÀHUEHKDYLRUDOLVGHÀQHGDFRQWLQXRXVQHWDVVLJQPHQWZLOOEHFRPSLOHGLQRWKHUZLVHDQDQGJDWHZLOOEHLQVWDQ
WLDWHG
PRGXOHDQGBRSDEF
RXWSXWD
LQSXWEF
CLIGHIEHKDYLRUDO
ZLUHD EF
CHOVH
DQGDDEF
CHQGLI
HQGPRGXOH
([DPSOH³7KHIROORZLQJH[DPSOHVKRZVXVDJHRIQHVWHGFRQGLWLRQDOFRPSLODWLRQGLUHFWLYHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PRGXOHWHVWRXW
RXWSXWRXW
CGHILQHZRZ
CGHILQHQHVWBRQH
CGHILQHVHFRQGBQHVW
CGHILQHQHVWBWZR
CLIGHIZRZ
LQLWLDOGLVSOD\´ZRZLVGHILQHGµ
CLIGHIQHVWBRQH
LQLWLDOGLVSOD\´QHVWBRQHLVGHILQHGµ
CLIGHIQHVWBWZR
LQLWLDOGLVSOD\´QHVWBWZRLVGHILQHGµ
CHOVH
LQLWLDOGLVSOD\´QHVWBWZRLVQRWGHILQHGµ
CHQGLI
CHOVH
LQLWLDOGLVSOD\´QHVWBRQHLVQRWGHILQHGµ
CHQGLI
CHOVH
LQLWLDOGLVSOD\´ZRZLVQRWGHILQHGµ
CLIGHIVHFRQGBQHVW
LQLWLDOGLVSOD\´QHVWBWZRLVGHILQHGµ
CHOVH
LQLWLDOGLVSOD\´QHVWBWZRLVQRWGHILQHGµ
CHQGLI
CHQGLI
HQGPRGXOH
CLQFOXGH
7KHÀOHLQFOXVLRQCLQFOXGHFRPSLOHUGLUHFWLYHLVXVHGWRLQVHUWWKHHQWLUHFRQWHQWVRIDVRXUFHÀOHLQDQRWKHUÀOHGXU
LQJFRPSLODWLRQ7KHUHVXOWLVDVWKRXJKWKHFRQWHQWVRIWKHLQFOXGHGVRXUFHÀOHDSSHDULQSODFHRIWKHCLQFOXGHFRP
SLOHUGLUHFWLYH7KHCLQFOXGHFRPSLOHUGLUHFWLYHFDQEHXVHGWRLQFOXGHJOREDORUFRPPRQO\XVHGGHÀQLWLRQVDQGWDVNV
ZLWKRXWHQFDSVXODWLQJUHSHDWHGFRGHZLWKLQPRGXOHERXQGDULHV
$GYDQWDJHVRIXVLQJWKHCLQFOXGHFRPSLOHUGLUHFWLYHLQFOXGHWKHIROORZLQJ
³ 3URYLGLQJDQLQWHJUDOSDUWRIFRQÀJXUDWLRQPDQDJHPHQW
³ ,PSURYLQJWKHRUJDQL]DWLRQRI9HULORJ+'/VRXUFHGHVFULSWLRQV
³ )DFLOLWDWLQJWKHPDLQWHQDQFHRI9HULORJ+'/VRXUFHGHVFULSWLRQV
7KHV\QWD[IRUWKHCLQFOXGHFRPSLOHUGLUHFWLYHLVJLYHQLQ6\QWD[
LQFOXGHBFRPSLOHUBGLUHFWLYH
CLQFOXGHILOHQDPH
6\QWD[³6\QWD[IRULQFOXGHFRPSLOHUGLUHFWLYH
7KHFRPSLOHUGLUHFWLYHCLQFOXGHFDQEHVSHFLÀHGDQ\ZKHUHZLWKLQWKH9HULORJ+'/GHVFULSWLRQ7KHÀOHQDPHLVWKH
QDPHRIWKHÀOHWREHLQFOXGHGLQWKHVRXUFHÀOH7KHÀOHQDPHFDQEHDIXOORUUHODWLYHSDWKQDPH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
2QO\ZKLWHVSDFHRUDFRPPHQWPD\DSSHDURQWKHVDPHOLQHDVWKHCLQFOXGHFRPSLOHUGLUHFWLYH
$ÀOHLQFOXGHGLQWKHVRXUFHXVLQJWKHCLQFOXGHFRPSLOHUGLUHFWLYHPD\FRQWDLQRWKHUCLQFOXGHFRPSLOHUGLUHFWLYHV
7KHQXPEHURIQHVWLQJOHYHOVIRULQFOXGHGÀOHVVKDOOEHÀQLWH
([DPSOHV
([DPSOHVRIOHJDOFRPPHQWVIRUWKHCLQFOXGHFRPSLOHUGLUHFWLYHDUHDVIROORZV
CLQFOXGHSDUWVFRXQWY
CLQFOXGHILOH%
CLQFOXGHILOH%LQFOXGLQJILOH%
127(³,PSOHPHQWDWLRQVPD\OLPLWWKHPD[LPXPQXPEHURIOHYHOVWRZKLFKLQFOXGHÀOHVFDQEHQHVWHGEXWWKHOLPLWVKDOOEHDW
OHDVW
CUHVHWDOO
:KHQCUHVHWDOOFRPSLOHUGLUHFWLYHLVHQFRXQWHUHGGXULQJFRPSLODWLRQDOOFRPSLOHUGLUHFWLYHVDUHVHWWRWKHGHIDXOWYDO
XHV7KLV LV XVHIXO IRU HQVXULQJ WKDW RQO\ WKRVH GLUHFWLYHV WKDW DUH GHVLUHG LQ FRPSLOLQJ D SDUWLFXODU VRXUFH ÀOH DUH
DFWLYH
7KHUHFRPPHQGHGXVDJHLVWRSODFHCUHVHWDOODWWKHEHJLQQLQJRIHDFKVRXUFHWH[WÀOHIROORZHGLPPHGLDWHO\E\WKH
GLUHFWLYHVGHVLUHGLQWKHÀOH
CWLPHVFDOH
7KLVGLUHFWLYHVSHFLÀHVWKHWLPHXQLWDQGWLPHSUHFLVLRQRIWKHPRGXOHVWKDWIROORZLW7KHWLPHXQLWLVWKHXQLWRIPHD
VXUHPHQWIRUWLPHYDOXHVVXFKDVWKHVLPXODWLRQWLPHDQGGHOD\YDOXHV
7RXVHPRGXOHVZLWKGLIIHUHQWWLPHXQLWVLQWKHVDPHGHVLJQWKHIROORZLQJWLPHVFDOHFRQVWUXFWVDUHXVHIXO
³ 7KHCWLPHVFDOHFRPSLOHUGLUHFWLYHWRVSHFLI\WKHXQLWRIPHDVXUHPHQWIRUWLPHDQGSUHFLVLRQRIWLPHLQWKH
PRGXOHVLQWKHGHVLJQ
³ 7KHSULQWWLPHVFDOHV\VWHPWDVNWRGLVSOD\WKHWLPHXQLWDQGSUHFLVLRQRIDPRGXOH
³ 7KHWLPHDQGUHDOWLPHV\VWHPIXQFWLRQVWKHWLPHIRUPDWV\VWHPWDVNDQGWKHWIRUPDWVSHFLÀFDWLRQWR
VSHFLI\KRZWLPHLQIRUPDWLRQLVUHSRUWHG
7KHCWLPHVFDOHFRPSLOHUGLUHFWLYHVSHFLÀHVWKHXQLWRIPHDVXUHPHQWIRUWLPHDQGGHOD\YDOXHVDQGWKHGHJUHHRIDFFX
UDF\IRUGHOD\VLQDOOPRGXOHVWKDWIROORZWKLVGLUHFWLYHXQWLODQRWKHUCWLPHVFDOHFRPSLOHUGLUHFWLYHLVUHDG
7KHV\QWD[IRUWKHCWLPHVFDOHGLUHFWLYHLVJLYHQLQ6\QWD[
WLPHVFDOHBFRPSLOHUBGLUHFWLYH
CWLPHVFDOHWLPHBXQLWWLPHBSUHFLVLRQ
6\QWD[³6\QWD[IRUWLPHVFDOHFRPSLOHUGLUHFWLYH
7KHWLPHBXQLWDUJXPHQWVSHFLÀHVWKHXQLWRIPHDVXUHPHQWIRUWLPHVDQGGHOD\V
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHWLPHBSUHFLVLRQDUJXPHQWVSHFLÀHVKRZGHOD\YDOXHVDUHURXQGHGEHIRUHEHLQJXVHGLQVLPXODWLRQ7KHYDO
XHVXVHGDUHDFFXUDWHWRZLWKLQWKHXQLWRIWLPHWKDWLVVSHFLÀHGKHUH7KHVPDOOHVWWLPHBSUHFLVLRQDUJXPHQWRI
DOOWKHCWLPHVFDOHFRPSLOHUGLUHFWLYHVLQWKHGHVLJQGHWHUPLQHVWKHWLPHXQLWRIWKHVLPXODWLRQ
7KH WLPHBSUHFLVLRQ DUJXPHQW VKDOO EH DW OHDVW DV SUHFLVH DV WKH WLPHBXQLW DUJXPHQW LW FDQQRW VSHFLI\ D
ORQJHUXQLWRIWLPHWKDQWLPHBXQLW
7KHLQWHJHUVLQWKHVHDUJXPHQWVVSHFLI\DQRUGHURIPDJQLWXGHIRUWKHVL]HRIWKHYDOXHWKHYDOLGLQWHJHUVDUH
DQG7KHFKDUDFWHUVWULQJVUHSUHVHQWXQLWVRIPHDVXUHPHQWWKHYDOLGFKDUDFWHUVWULQJVDUHVPVXVQVSVDQGIV
7KHXQLWVRIPHDVXUHPHQWVSHFLÀHGE\WKHVHFKDUDFWHUVWULQJVDUHJLYHQLQ7DEOH
7DEOH³$UJXPHQWVRIWLPHBSUHFLVLRQ
&KDUDFWHU
VWULQJ
8QLWRIPHDVXUHPHQW
V
VHFRQGV
PV
PLOOLVHFRQGV
XV
PLFURVHFRQGV
QV
QDQRVHFRQGV
SV
SLFRVHFRQGV
IV
IHPWRVHFRQGV
([DPSOHV
7KHIROORZLQJH[DPSOHVKRZVKRZWKLVGLUHFWLYHLVXVHG
CWLPHVFDOHQVSV
+HUHDOOWLPHYDOXHVLQWKHPRGXOHVWKDWIROORZWKHGLUHFWLYHDUHPXOWLSOHVRIQVEHFDXVHWKHWLPHBXQLWDUJXPHQW
LV´QVµ'HOD\VDUHURXQGHGWRUHDOQXPEHUVZLWKWKUHHGHFLPDOSODFHV³RUSUHFLVHWRZLWKLQRQHWKRXVDQGWKRID
QDQRVHFRQG³EHFDXVHWKHWLPHBSUHFLVLRQDUJXPHQWLV´SVµRURQHWKRXVDQGWKRIDQDQRVHFRQG
&RQVLGHUWKHIROORZLQJH[DPSOH
CWLPHVFDOHXVQV
7KHWLPHYDOXHVLQWKHPRGXOHVWKDWIROORZWKLVGLUHFWLYHDUHPXOWLSOHVRI—VEHFDXVHWKHWLPHBXQLWDUJXPHQWLV
´XVµ'HOD\VDUHURXQGHGWRZLWKLQRQHWHQWKRIDPLFURVHFRQGEHFDXVHWKHWLPHBSUHFLVLRQDUJXPHQWLV´
QVµRURQHWHQWKRIDPLFURVHFRQG
7KHIROORZLQJH[DPSOHVKRZVDCWLPHVFDOHGLUHFWLYHLQWKHFRQWH[WRIDPRGXOH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
CWLPHVFDOHQVQV
PRGXOHWHVW
UHJVHW
SDUDPHWHUG LQLWLDOEHJLQ
GVHW GVHW HQG
HQGPRGXOH
7KHCWLPHVFDOHQVQVFRPSLOHUGLUHFWLYHVSHFLÀHVWKDWWKHWLPHXQLWIRUPRGXOHWHVWLVQV$VDUHVXOW
WKHWLPHYDOXHVLQWKHPRGXOHDUHPXOWLSOHVRIQVURXQGHGWRWKHQHDUHVWQVDQGWKHUHIRUHWKHYDOXHVWRUHGLQ
SDUDPHWHUGLVVFDOHGWRDGHOD\RIQV7KLVPHDQVWKDWWKHYDOXHLVDVVLJQHGWRUHJVHWDWVLPXODWLRQWLPHQV
=QVDQGWKHYDOXHDWVLPXODWLRQWLPHQV
3DUDPHWHUGUHWDLQVLWVYDOXHQRPDWWHUZKDWWLPHVFDOHLVLQHIIHFW
7KHVHVLPXODWLRQWLPHVDUHGHWHUPLQHGDVIROORZV
D
7KHYDOXHRISDUDPHWHUGLVURXQGHGIURPWRDFFRUGLQJWRWKHWLPHSUHFLVLRQ
E
7KHWLPHXQLWRIWKHPRGXOHLVQVDQGWKHSUHFLVLRQLVQVVRWKHGHOD\RISDUDPHWHUGLVVFDOHGIURP
WR
F
7KHDVVLJQPHQWRIWRUHJVHWLVVFKHGXOHGDWVLPXODWLRQWLPHQVDQGWKHDVVLJQPHQWRIDWVLPXODWLRQ
WLPHQV7KHWLPHYDOXHVDUHQRWURXQGHGZKHQWKHDVVLJQPHQWVDUHVFKHGXOHG
CXQFRQQHFWHGBGULYHDQGCQRXQFRQQHFWHGBGULYH
$OO XQFRQQHFWHG LQSXW SRUWV RI D PRGXOH DSSHDULQJ EHWZHHQ WKH GLUHFWLYHV CXQFRQQHFWHGBGULYH DQG
CQRXQFRQQHFWHGBGULYHDUHSXOOHGXSRUSXOOHGGRZQLQVWHDGRIWKHQRUPDOGHIDXOW
7KHGLUHFWLYHCXQFRQQHFWHGBGULYHWDNHVRQHRIWZRDUJXPHQWV³SXOORUSXOO:KHQSXOOLVVSHFLÀHGDOOXQFRQ
QHFWHGLQSXWSRUWVDUHDXWRPDWLFDOO\SXOOHGXS:KHQSXOOLVVSHFLÀHGXQFRQQHFWHGSRUWVDUHSXOOHGGRZQ7KHVH
GLUHFWLYHVVKDOOEHVSHFLÀHGLQSDLUVDQGRXWVLGHRIWKHPRGXOHGHFODUDWLRQV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
3/,7)DQG$&&LQWHUIDFHPHFKDQLVP
7KHLQWHUIDFHPHFKDQLVPGHVFULEHGLQWKLVVHFWLRQSURYLGHVDPHDQVIRUXVHUVWROLQNDSSOLFDWLRQVEDVHGRQ3/,WDVN
IXQFWLRQ7)URXWLQHVDQGDFFHVV$&&URXWLQHVWR9HULORJVRIWZDUHSURGXFWV7KURXJKWKHLQWHUIDFHPHFKDQLVPD
XVHUFDQ
³ 6SHFLI\DXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQQDPHWKDWFDQEHLQFOXGHGLQ9HULORJ+'/VRXUFHGHVFULSWLRQV
WKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQQDPHVKDOOEHJLQZLWKDGROODUVLJQVXFKDVJHWBYHFWRU
³ 3URYLGHRQHRUPRUH3/,&DSSOLFDWLRQVWREHFDOOHGE\DVRIWZDUHSURGXFWVXFKDVDORJLFVLPXODWRU
³ 'HÀQH ZKLFK 3/, & DSSOLFDWLRQV DUH WR EH FDOOHG³DQG ZKHQ WKH DSSOLFDWLRQV VKRXOG EH FDOOHG³ZKHQ WKH
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQQDPHLVHQFRXQWHUHGLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
³ 'HÀQHZKHWKHUWKH3/,DSSOLFDWLRQVVKRXOGEHWUHDWHGDVIXQFWLRQVZKLFKUHWXUQDYDOXHRUWDVNVDQDORJRXV
WRVXEURXWLQHVLQRWKHUSURJUDPPLQJODQJXDJHV
³ 'HÀQHDGDWDDUJXPHQWWREHSDVVHGWRWKH3/,DSSOLFDWLRQVHDFKWLPHWKH\DUHFDOOHG
127(³7KH 3/, LQWHUIDFH PHFKDQLVP GHVFULEHG LQ WKLV VHFWLRQ GRHV QRW DSSO\ WR DSSOLFDWLRQV WKDW XVH WKH9HULORJ 3URFHGXUDO
,QWHUIDFH93,URXWLQHVWKHVHURXWLQHVXVHWKH93,UHJLVWU\PHFKDQLVPGHVFULEHGLQVHFWLRQVDQG
3/,SXUSRVHDQGKLVWRU\
6HFWLRQVWKURXJKDQGDQQH[HV&WKURXJK(GHVFULEHWKH&ODQJXDJHSURFHGXUDOLQWHUIDFHVWDQGDUGDQGLQWHUIDFH
PHFKDQLVPV WKDW DUH SDUW RI WKH 9HULORJ +'/ 7KLV SURFHGXUDO LQWHUIDFH NQRZQ DV WKH 3URJUDPPLQJ /DQJXDJH
,QWHUIDFHRU3/,SURYLGHVDPHDQVIRU9HULORJ+'/XVHUVWRDFFHVVDQGPRGLI\GDWDLQDQLQVWDQWLDWHG9HULORJ+'/
GDWDVWUXFWXUHG\QDPLFDOO\$QLQVWDQWLDWHG9HULORJ+'/GDWDVWUXFWXUHLVWKHUHVXOWRIFRPSLOLQJ9HULORJ+'/VRXUFH
GHVFULSWLRQVDQGJHQHUDWLQJWKHKLHUDUFK\PRGHOHGE\PRGXOHLQVWDQFHVSULPLWLYHLQVWDQFHVDQGRWKHU9HULORJ+'/
FRQVWUXFWV WKDW UHSUHVHQW VFRSH 7KH 3/, SURFHGXUDO LQWHUIDFH SURYLGHV D OLEUDU\ RI &ODQJXDJH IXQFWLRQV WKDW FDQ
GLUHFWO\DFFHVVGDWDZLWKLQDQLQVWDQWLDWHG9HULORJ+'/GDWDVWUXFWXUH
$IHZRIWKHPDQ\SRVVLEOHDSSOLFDWLRQVIRUWKH3/,SURFHGXUDOLQWHUIDFHDUH
³ &ODQJXDJHGHOD\FDOFXODWRUVIRU9HULORJPRGHOOLEUDULHVWKDWFDQG\QDPLFDOO\VFDQWKHGDWDVWUXFWXUHRID9HU
LORJVRIWZDUHSURGXFWDQGWKHQG\QDPLFDOO\PRGLI\WKHGHOD\VRIHDFKLQVWDQFHRIPRGHOVIURPWKHOLEUDU\
³ &ODQJXDJHDSSOLFDWLRQVWKDWG\QDPLFDOO\UHDGWHVWYHFWRUVRURWKHUGDWDIURPDÀOHDQGSDVVWKHGDWDLQWRD
9HULORJVRIWZDUHSURGXFW
³ &XVWRPJUDSKLFDOZDYHIRUPDQGGHEXJJLQJHQYLURQPHQWVIRU9HULORJVRIWZDUHSURGXFWV
³ 6RXUFHFRGHGHFRPSLOHUVWKDWFDQJHQHUDWH9HULORJ+'/VRXUFHFRGHIURPWKHFRPSLOHGGDWDVWUXFWXUHRID
9HULORJVRIWZDUHSURGXFW
³ 6LPXODWLRQPRGHOVZULWWHQLQWKH&ODQJXDJHDQGG\QDPLFDOO\OLQNHGLQWR9HULORJ+'/VLPXODWLRQV
³ ,QWHUIDFHVWRDFWXDOKDUGZDUHVXFKDVDKDUGZDUHPRGHOHUWKDWG\QDPLFDOO\LQWHUDFWZLWKVLPXODWLRQV
7KLV GRFXPHQW VWDQGDUGL]HV D SXEOLFGRPDLQ9HULORJ 3/, WKDW KDV EHHQ LQ XVH VLQFH WKH PLGV7KLV VWDQGDUG
FRPSULVHVWKUHHSULPDU\JHQHUDWLRQVRISXEOLFGRPDLQ3/,URXWLQHV
D
7DVNIXQFWLRQURXWLQHVFDOOHG 7)URXWLQHVPDNHXSWKHÀUVWJHQHUDWLRQRIWKH3/,7KHVHURXWLQHVPRVWRI
ZKLFK VWDUW ZLWK WKH FKDUDFWHUV WIB DUH SULPDULO\ XVHG IRU RSHUDWLRQV LQYROYLQJ XVHUGHÀQHG WDVNIXQFWLRQ
DUJXPHQWVDORQJZLWKXWLOLW\IXQFWLRQVVXFKDVVHWWLQJXSFDOOEDFNPHFKDQLVPVDQGZULWLQJGDWDWRRXWSXW
GHYLFHV7KH7)URXWLQHVDUHVRPHWLPHVUHIHUUHGWRDVXWLOLW\URXWLQHV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
E
$FFHVVURXWLQHVFDOOHG$&&URXWLQHVIRUPWKHVHFRQGJHQHUDWLRQRIWKH3/,7KHVHURXWLQHVZKLFKDOOVWDUW
ZLWKWKHFKDUDFWHUVDFFBSURYLGHDQREMHFWRULHQWHGDFFHVVGLUHFWO\LQWRD9HULORJ+'/VWUXFWXUDOGHVFULSWLRQ
$&&URXWLQHVDUHXVHGWRDFFHVVDQGPRGLI\LQIRUPDWLRQVXFKDVGHOD\YDOXHVDQGORJLFYDOXHVRQDZLGH
YDULHW\ RI REMHFWV WKDW H[LVW LQ D9HULORJ +'/ GHVFULSWLRQ7KHUH LV VRPH RYHUODS LQ IXQFWLRQDOLW\ EHWZHHQ
$&&URXWLQHVDQG7)URXWLQHV
F
9HULORJ3URFHGXUDO,QWHUIDFHURXWLQHVFDOOHG93,URXWLQHVDUHWKHWKLUGJHQHUDWLRQRIWKH3/,7KHVHURXWLQHV
DOORIZKLFKVWDUWZLWKWKHFKDUDFWHUVYSLBSURYLGHDQREMHFWRULHQWHGDFFHVVIRUERWK9HULORJ+'/VWUXFWXUDO
DQG EHKDYLRUDO REMHFWV 7KH93, URXWLQHV DUH D VXSHUVHW RI WKH IXQFWLRQDOLW\ RI WKH 7) URXWLQHV DQG$&&
URXWLQHV
8VHUGHÀQHGWDVNRUIXQFWLRQQDPHV
$XVHUGHÀQHGWDVNRUIXQFWLRQQDPHLVWKHQDPHWKDWZLOOEHXVHGZLWKLQD9HULORJ+'/VRXUFHÀOHWRLQYRNHVSHFLÀF
3/,DSSOLFDWLRQV7KHQDPHVKDOODGKHUHWRWKHIROORZLQJUXOHV
³
³
³
³
7KHÀUVWFKDUDFWHURIWKHQDPHVKDOOEHWKHGROODUVLJQFKDUDFWHU
7KHUHPDLQLQJFKDUDFWHUVVKDOOEHOHWWHUVGLJLWVWKHXQGHUVFRUHFKDUDFWHUBRUWKHGROODUFKDUDFWHU
8SSHUFDVHDQGORZHUFDVHOHWWHUVVKDOOEHFRQVLGHUHGWREHXQLTXH³WKHQDPHLVFDVHVHQVLWLYH
7KHQDPHFDQEHDQ\VL]HDQGDOOFKDUDFWHUVDUHVLJQLÀFDQW
2YHUORDGLQJEXLOWLQV\VWHPWDVNDQGIXQFWLRQQDPHV
6HFWLRQGHÀQHVDQXPEHURIEXLOWLQV\VWHPWDVNVDQGIXQFWLRQVWKDWDUHSDUWRIWKH9HULORJODQJXDJH,QDGGLWLRQ
VRIWZDUHSURGXFWVFDQLQFOXGHRWKHUEXLOWLQV\VWHPWDVNVDQGIXQFWLRQVVSHFLÀFWRWKHSURGXFW7KHVHEXLOWLQV\VWHP
WDVN DQG IXQFWLRQ QDPHV EHJLQ ZLWK WKH GROODU VLJQ FKDUDFWHU MXVW DV XVHUGHÀQHG V\VWHP WDVN DQG IXQFWLRQ
QDPHV
,IDXVHUSURYLGHG3/,DSSOLFDWLRQLVDVVRFLDWHGZLWKWKHVDPHQDPHDVDEXLOWLQV\VWHPWDVNRUIXQFWLRQXVLQJWKH
3/,LQWHUIDFHPHFKDQLVPWKHXVHUSURYLGHG&DSSOLFDWLRQVKDOORYHUORDGWKHEXLOWLQV\VWHPWDVNIXQFWLRQUHSODFLQJ
LWV IXQFWLRQDOLW\ ZLWK WKDW RI WKH XVHUSURYLGHG & DSSOLFDWLRQ )RU H[DPSOH D XVHU FRXOG ZULWH D UDQGRP QXPEHU
JHQHUDWRU DV D 3/, DSSOLFDWLRQ DQG WKHQ DVVRFLDWH WKH DSSOLFDWLRQ ZLWK WKH QDPH UDQGRP WKHUHE\ RYHUULGLQJ WKH
EXLOWLQUDQGRPIXQFWLRQZLWKWKHXVHU·VDSSOLFDWLRQ
8VHUVXSSOLHG3/,DSSOLFDWLRQV
8VHUVXSSOLHG 3/, DSSOLFDWLRQV DUH &ODQJXDJH IXQFWLRQV WKDW XWLOL]H WKH OLEUDU\ RI 3/, & IXQFWLRQV WR DFFHVV DQG
LQWHUDFWG\QDPLFDOO\ZLWK9HULORJ+'/VRIWZDUHLPSOHPHQWDWLRQVDVWKH9HULORJ+'/VRXUFHFRGHLVH[HFXWHG
7KHVH 3/, DSSOLFDWLRQV DUH QRW LQGHSHQGHQW & SURJUDPV 7KH\ DUH & IXQFWLRQV ZKLFK DUH OLQNHG LQWR D VRIWZDUH
SURGXFWDQGEHFRPHSDUWRIWKHSURGXFW7KLVDOORZVWKH3/,DSSOLFDWLRQWREHFDOOHGZKHQWKHXVHUGHÀQHGV\VWHP
WDVNRUIXQFWLRQQDPHLVFRPSLOHGRUH[HFXWHGLQWKH9HULORJ+'/VRXUFHFRGH
7KH 3/, LQWHUIDFH PHFKDQLVP SURYLGHV D PHDQV WR KDYH 3/, DSSOLFDWLRQV FDOOHG IRU YDULRXV UHDVRQV ZKHQ WKH
DVVRFLDWHGV\VWHPWDVNRUIXQFWLRQQDPHLVHQFRXQWHUHGLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ)RUH[DPSOHZKHQ
D9HULORJ+'/VLPXODWRUÀUVWFRPSLOHVWKH9HULORJ+'/VRXUFHGHVFULSWLRQDVSHFLÀF3/,DSSOLFDWLRQFDQEHFDOOHG
WKDWSHUIRUPVV\QWD[FKHFNLQJWRHQVXUHWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQLVEHLQJXVHGFRUUHFWO\7KHQDV
VLPXODWLRQ LV H[HFXWLQJ D GLIIHUHQW 3/, DSSOLFDWLRQ FDQ EH FDOOHG WR SHUIRUP WKH RSHUDWLRQV UHTXLUHG E\ WKH 3/,
DSSOLFDWLRQ2WKHU3/,DSSOLFDWLRQVFDQEHDXWRPDWLFDOO\FDOOHGE\WKHVLPXODWRUIRUPLVFHOODQHRXVUHDVRQVVXFKDV
WKHHQGRIDVLPXODWLRQWLPHVWHSRUDORJLFYDOXHFKDQJHRQDVSHFLÀFVLJQDO
7KH 3/, LQWHUIDFH PHFKDQLVP IRU 7) DQG $&& URXWLQHV SURYLGHV ÀYH FODVVHV RI XVHUVXSSOLHG 3/, DSSOLFDWLRQV
FKHFNWI DSSOLFDWLRQV VL]HWI DSSOLFDWLRQV FDOOWI DSSOLFDWLRQV PLVFWI DSSOLFDWLRQV DQG FRQVXPHU DSSOLFDWLRQV 7KH
SXUSRVHRIHDFKRIWKH3/,DSSOLFDWLRQFODVVHVLVH[SODLQHGLQWKHIROORZLQJVXEFODXVHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHFDOOWIFODVVRI3/,DSSOLFDWLRQV
$ FDOOWI 3/, DSSOLFDWLRQ VKDOO EH FDOOHG HDFK WLPH WKH DVVRFLDWHG XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ LV H[HFXWHG
ZLWKLQWKH9HULORJ+'/VRXUFHFRGH)RUH[DPSOHWKHIROORZLQJ9HULORJORRSZRXOGFDOOWKH3/,FDOOWIDSSOLFDWLRQ
WKDWLVDVVRFLDWHGZLWKWKHJHWBYHFWRUXVHUGHÀQHGV\VWHPWDVNQDPHWLPHV
IRUL L L L
#SRVHGJHFONJHWBYHFWRUWHVWBYHFWRUSDWLQSXWBEXV
,Q WKLV H[DPSOH WKH XVHUVXSSOLHG 3/, FDOOWI DSSOLFDWLRQ PLJKW UHDG D WHVW YHFWRU IURP D ÀOH FDOOHG
WHVWBYHFWRUSDW WKHÀUVWWDVNIXQFWLRQDUJXPHQWSHUKDSVPDQLSXODWHWKHYHFWRUWRSXWLWLQDSURSHUIRUPDW
IRU9HULORJDQGWKHQDVVLJQWKHYHFWRUYDOXHWRWKHVHFRQGWDVNIXQFWLRQDUJXPHQWFDOOHGLQSXWBEXV
7KHFKHFNWIFODVVRI3/,DSSOLFDWLRQV
$ FKHFNWI3/,DSSOLFDWLRQVKDOOEHFDOOHGZKHQWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQQDPHLVHQFRXQWHUHGGXULQJ
SDUVLQJRUFRPSLOLQJWKH9HULORJ+'/VRXUFHFRGH7KLVDSSOLFDWLRQLVW\SLFDOO\XVHGWRFKHFNWKHFRUUHFWQHVVRIDQ\
DUJXPHQWVXVHGZLWKWKHV\VWHPWDVNLQWKH9HULORJ+'/VRXUFHFRGH7KHFKHFNWI3/,DSSOLFDWLRQVKDOOEHFDOOHGRQH
WLPH IRU HDFK LQVWDQFH RI D V\VWHP WDVN RU IXQFWLRQ LQ WKH VRXUFH GHVFULSWLRQ 3URYLGLQJ D FKHFNWI DSSOLFDWLRQ LV
RSWLRQDOEXWLWLVUHFRPPHQGHGWKDWDQ\DUJXPHQWVXVHGZLWKWKHV\VWHPWDVNRUIXQFWLRQEHFKHFNHGIRUFRUUHFWQHVV
WRDYRLGSUREOHPVZKHQWKHFDOOWIRURWKHU3/,DSSOLFDWLRQVUHDGDQGSHUIRUPRSHUDWLRQVRQWKHDUJXPHQWV
7KHVL]HWIFODVVRI3/,DSSOLFDWLRQV
$ VL]HWI 3/, DSSOLFDWLRQ FDQ EH XVHG LQ FRQMXQFWLRQ ZLWK XVHUGHÀQHG V\VWHP IXQFWLRQV$ IXQFWLRQ VKDOO UHWXUQ D
YDOXHDQGVRIWZDUHSURGXFWVWKDWH[HFXWHWKHV\VWHPIXQFWLRQPD\QHHGWRGHWHUPLQHKRZPDQ\ELWVZLGHWKDWUHWXUQ
ZLOOEH7KHVL]HWIDSSOLFDWLRQVKDOOEHFDOOHGRQHWLPHIRUHDFKLQVWDQFHRIDV\VWHPWDVNRUIXQFWLRQLQWKHVRXUFH
GHVFULSWLRQW\SLFDOO\ZKHQWKH9HULORJ+'/VRXUFHFRGHLVFRPSLOHGZKHQFDOOHGWKHVL]HWIDSSOLFDWLRQVKDOOUHWXUQ
WKHQXPEHURIELWVRIWKHV\VWHPIXQFWLRQUHWXUQYDOXH7KHVL]HWIDSSOLFDWLRQVKDOOQRWEHFDOOHGIRU3/,V\VWHPWDVNV
7KHPLVFWIFODVVRI3/,DSSOLFDWLRQV
$ PLVFWI3/,DSSOLFDWLRQVKDOOEHFDOOHGE\D9HULORJVRIWZDUHSURGXFWIRUPLVFHOODQHRXVUHDVRQVZKLOHWKH9HULORJ
+'/VRXUFHGHVFULSWLRQLVEHLQJH[HFXWHG$PRQJWKHVHUHDVRQVFDQEHWKHHQGRIDVLPXODWLRQWLPHVWHSDORJLF
YDOXH FKDQJH RQ D XVHUGHÀQHG V\VWHP WDVNIXQFWLRQ DUJXPHQW RU WKH H[HFXWLRQ RI WKH VWRS DQG ÀQLVK EXLOWLQ
V\VWHP IXQFWLRQV:KHQ WKH VRIWZDUH SURGXFW FDOOV WKH PLVFWI 3/, DSSOLFDWLRQ LW VKDOO SDVV LQ D UHDVRQ DUJXPHQW
ZKLFKFDQEHXVHGZLWKLQWKHPLVFWIDSSOLFDWLRQWRGHWHUPLQHZK\WKHDSSOLFDWLRQZDVFDOOHG7KHUHDVRQDUJXPHQW
VKDOOEHDSUHGHÀQHGLQWHJHUFRQVWDQW7DEOHOLVWVWKHUHDVRQVWKHPLVFWIDSSOLFDWLRQFDQEHFDOOHG1RWHWKDWWKH
PLVFWIDSSOLFDWLRQDVVRFLDWHGZLWKDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGWDVNRUIXQFWLRQQDPHVKDOOQRWEHDFWLYDWHG
XQWLOWKHLQVWDQFHRIWKHWDVNIXQFWLRQKDVEHHQH[HFXWHGWKHÀUVWWLPH
7KHFRQVXPHUFODVVRI3/,DSSOLFDWLRQV
$FRQVXPHU3/,DSSOLFDWLRQVKDOOEHFDOOHGWKURXJKD3/,FDOOEDFNPHFKDQLVPUHIHUUHGWRDVWKH9DOXH&KDQJH/LQN
9&/ 8VLQJ WKH9&/ DQRWKHU 3/, DSSOLFDWLRQ W\SLFDOO\ WKH FDOOWI DSSOLFDWLRQ FDQ SODFH9&/ ÁDJV RQ REMHFWV
ZLWKLQWKH9HULORJ+'/GDWDVWUXFWXUHVXFKDVDVSHFLÀFQHW:KHQHYHUDQREMHFWZLWKD9&/ÁDJFKDQJHVYDOXH
GXULQJDVLPXODWLRQWKHFRQVXPHU3/,DSSOLFDWLRQVKDOOEHFDOOHGDQGSDVVHGLQIRUPDWLRQDERXWWKHFKDQJH
$VVRFLDWLQJ3/,DSSOLFDWLRQVWRDFODVVDQGV\VWHPWDVNIXQFWLRQQDPH
(DFKXVHUSURYLGHG3/,DSSOLFDWLRQLVDVWDQGDUG&ODQJXDJHIXQFWLRQWKDWPDNHVXVHRIWKHOLEUDU\RI3/,IXQFWLRQV
7KHVHXVHUSURYLGHG3/,DSSOLFDWLRQVVKDOOEHDVVRFLDWHGZLWKERWKWKHFODVVRIDSSOLFDWLRQVXFKDVFDOOWIRUFKHFNWI
DQGWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQQDPH,QDGGLWLRQWKHXVHUGHÀQHGQDPHVKDOOEHGHFODUHGDVHLWKHUD
V\VWHPWDVNRUDV\VWHPIXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHPHWKRGRIDVVRFLDWLQJ3/,DSSOLFDWLRQVZLWKDFODVVDQGV\VWHPWDVNIXQFWLRQQDPHLVQRWGHÀQHGDVSDUWRIWKLV
VWDQGDUG(DFKVRIWZDUHSURGXFWYHQGRUVKDOOGHÀQHDQDVVRFLDWLRQPHFKDQLVPVSHFLÀFWRWKHLUSURGXFW5HIHUWRWKH
GRFXPHQWDWLRQSURYLGHGE\WKHYHQGRUIRULQVWUXFWLRQVRQDVVRFLDWLQJ3/,DSSOLFDWLRQVWRFODVVHVDQGV\VWHPWDVN
IXQFWLRQQDPHVDQGWKHQOLQNLQJWKH3/,DSSOLFDWLRQVLQWRWKHVRIWZDUHSURGXFWVRIWKHYHQGRU
3/,DSSOLFDWLRQDUJXPHQWV
:KHQWKHFDOOWIFKHFNWIDQGVL]HWI3/,DSSOLFDWLRQVDUHFDOOHGE\D9HULORJVRIWZDUHLPSOHPHQWDWLRQWKH\VKDOOEH
SDVVHGWZR&DUJXPHQWVGDWDDQGUHDVRQLQWKDWRUGHU:KHQWKHPLVFWIDSSOLFDWLRQLVFDOOHGLWVKDOOEHSDVVHGWKUHH
&DUJXPHQWV GDWD UHDVRQDQG SDUDPYFLQWKDWRUGHU7KHVHDUJXPHQWVDUHGHÀQHGLQPRUHGHWDLOLQWKHIROORZLQJ
VXEFODXVHV
7KHGDWD&DUJXPHQW
7KH GDWD&DUJXPHQWVKDOOEHDQLQWHJHUYDOXH7KHYDOXHLVGHÀQHGE\WKHXVHUDWWKHWLPHWKH3/,DSSOLFDWLRQVDUH
DVVRFLDWHGZLWKDXVHUGHÀQHGV\VWHPWDVNIXQFWLRQQDPH7KLVYDOXHFDQEHXVHGWRDOORZVHYHUDOGLIIHUHQWV\VWHP
WDVNIXQFWLRQ QDPHV WR XVH WKH VDPH FDOOWI FKHFNWI VL]HWI RU PLVFWI DSSOLFDWLRQV 7R GR WKLV HDFK V\VWHP WDVN
IXQFWLRQQDPHZRXOGEHDVVRFLDWHGZLWKWKHVDPH3/,DSSOLFDWLRQVEXWHDFKZRXOGKDYHDGLIIHUHQWYDOXHIRUWKHXVHU
GHÀQHGGDWDDUJXPHQW:KHQD3/,DSSOLFDWLRQLVFDOOHGLWFDQWKHQFKHFNWKHYDOXHRIWKHGDWDDUJXPHQWWRGHWHUPLQH
ZKLFKV\VWHPWDVNIXQFWLRQQDPHZDVXVHGWRFDOOWKHDSSOLFDWLRQ
7KHUHDVRQ&DUJXPHQW
7KH UHDVRQ&DUJXPHQWVKDOOEHDSUHGHÀQHGLQWHJHUFRQVWDQWWKDWLVSDVVHGWRWKHFDOOWIFKHFNWIVL]HWIDQGPLVFWI
DSSOLFDWLRQVHDFKWLPHWKHDSSOLFDWLRQVDUHFDOOHG*HQHUDOO\WKHFDOOWIFKHFNWIDQGVL]HWIDSSOLFDWLRQVGRQRWQHHGWR
FKHFN WKH UHDVRQ DUJXPHQW VLQFH WKHVH DSSOLFDWLRQV FDQ RQO\ EH FDOOHG XQGHU VSHFLÀF FLUFXPVWDQFHV 7KH PLVFWI
DSSOLFDWLRQKRZHYHUFDQEHFDOOHGIRUDZLGHYDULHW\RIUHDVRQVDQGWKHUHIRUHLWVKRXOGDOZD\VH[DPLQHWKHUHDVRQ
DUJXPHQW WR GHWHUPLQH ZK\ WKH DSSOLFDWLRQ ZDV FDOOHG 7KH YDOXH IRU WKH UHDVRQ DUJXPHQW LV GHÀQHG LQ WKH 3/,
LQFOXGHÀOHYHULXVHUK7KHSUHGHÀQHGFRQVWDQWVWKDWFDQEHSDVVHGWRWKHUHDVRQDUJXPHQWDUHOLVWHGLQ7DEOH
7KHSDUDPYF&DUJXPHQW
7KH SDUDPYF & DUJXPHQW VKDOO EH DQ LQWHJHU YDOXH SDVVHG WR WKH PLVFWI DSSOLFDWLRQ 7KH YDOXH RI SDUDPYF VKDOO
LQGLFDWHZKLFKWDVNIXQFWLRQDUJXPHQWFKDQJHGYDOXHZKHQWKHPLVFWIDSSOLFDWLRQZDVFDOOHGEDFNDIWHUDFWLYDWLQJWKH
XWLOLW\URXWLQH WIBDV\QFKRQ7KLVURXWLQHVKDOOFDXVHWKHPLVFWIDSSOLFDWLRQWREHFDOOHGZLWKDUHDVRQDUJXPHQWRI
UHDVRQBSDUDPYFRUUHDVRQBSDUDPGUF
7DEOH³3UHGHÀQHGUHDVRQLQWHJHUFRQVWDQWV
5HDVRQYDOXHSDVVHGWR
FDOOWIDSSOLFDWLRQV
FKHFNWIDSSOLFDWLRQV
VL]HWIDSSOLFDWLRQV
3UHGHÀQHGLQWHJHUFRQVWDQW
UHDVRQBFDOOWI
UHDVRQBFKHFNWI
UHDVRQBVL]HWI
PLVFWIDSSOLFDWLRQV
IRUWKHHQGRI9HULORJVRXUFHFRPSLODWLRQVWDUWRIH[HFXWLRQ
IRUDFKDQJHRIYDOXHRQDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
DUJXPHQWSDUDPHWHU
6HFWLRQ
UHDVRQBHQGRIFRPSLOH
UHDVRQBSDUDPYF
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³3UHGHÀQHGUHDVRQLQWHJHUFRQVWDQWVFRQWLQXHG
5HDVRQYDOXHSDVVHGWR
IRUDYDOXHFKDQJHRQWKHGULYHURIDXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQDUJXPHQWSDUDPHWHU
IRUDWKHHQGRIDWLPHVWHSÁDJJHGE\WIBV\QFKURQL]H
IRUDWKHHQGRIDWLPHVWHSÁDJJHGE\WIBURV\QFKURQL]H
IRUDVLPXODWLRQHYHQWVFKHGXOHGE\WIBVHWGHOD\
3UHGHÀQHGLQWHJHUFRQVWDQW
UHDVRQBSDUDPGUF
UHDVRQBV\QFK
UHDVRQBURV\QFK
UHDVRQBUHDFWLYLDWH
IRUWKHH[HFXWLRQRIDSURFHGXUDOIRUFHRUSURFHGXUDOFRQWLQXRXV
DVVLJQPHQWRQDQ\QHWUHJLVWHURUYDULDEOH
UHDVRQBIRUFH
IRUWKHH[HFXWLRQRIDSURFHGXUDOUHOHDVHRUSURFHGXUDOGHDVVLJQ
RQDQ\QHWUHJLVWHURUYDULDEOH
UHDVRQBUHOHDVH
IRUWKHH[HFXWLRQRIDSURFHGXUDOGLVDEOHVWDWHPHQW
UHDVRQBGLVDEOH
IRUWKHH[HFXWLRQRIWKHVWRSEXLOWLQV\VWHPWDVN
UHDVRQBLQWHUDFWLYH
IRUWKHH[HFXWLRQRIWKHVFRSHEXLOWLQV\VWHPWDVN
UHDVRQBVFRSH
IRUWKHVWDUWRIH[HFXWLRQRIWKHVDYHEXLOWLQV\VWHPWDVN
IRUWKHFRPSOHWLRQRIH[HFXWLRQRIWKHVDYHEXLOWLQV\VWHP
WDVN
IRUWKHH[HFXWLRQRIWKHUHVWDUWEXLOWLQV\VWHPWDVN
IRUWKHVWDUWRIH[HFXWLRQRIWKHUHVHWEXLOWLQV\VWHPWDVN
IRUWKHFRPSOHWLRQRIH[HFXWLRQRIWKHUHVHWEXLOWLQV\VWHP
WDVN
IRUWKHÀQLVKEXLOWLQV\VWHPWDVNH[HFXWHG
UHDVRQBVWDUWRIVDYH
UHDVRQBVDYH
UHDVRQBUHVWDUW
UHDVRQBUHVHW
UHDVRQBHQGRIUHVHW
UHDVRQBÀQLVK
8VHUGHÀQHGV\VWHPWDVNDQGIXQFWLRQDUJXPHQWV
:KHQDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQLVXVHGLQD9HULORJ+'/VRXUFHÀOHLWFDQKDYHDUJXPHQWVWKDWFDQEH
XVHGE\WKH3/,DSSOLFDWLRQVDVVRFLDWHGZLWKWKHV\VWHPWDVNRUIXQFWLRQ,QWKHIROORZLQJH[DPSOHWKHXVHUGHÀQHG
V\VWHPWDVNJHWBYHFWRUKDVWZRDUJXPHQWV
JHWBYHFWRUWHVWBYHFWRUSDWLQSXWBEXV
7KHDUJXPHQWVWRDV\VWHPWDVNRUIXQFWLRQDUHUHIHUUHGWRDVWDVNIXQFWLRQDUJXPHQWVRIWHQDEEUHYLDWHGDVWIDUJVE\
$&& URXWLQHV DQG DV WDVNIXQFWLRQ SDUDPHWHUV E\ 7) URXWLQHV 7KHVH DUJXPHQWV DUH QRW WKH VDPH DV &ODQJXDJH
DUJXPHQWV:KHQ WKH 3/, DSSOLFDWLRQV DVVRFLDWHG ZLWK D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ DUH FDOOHG WKH WDVN
IXQFWLRQDUJXPHQWVDUHQRWSDVVHGWRWKH3/,DSSOLFDWLRQ,QVWHDGDQXPEHURI3/,URXWLQHVDUHSURYLGHGWKDWDOORZ
WKH3/,DSSOLFDWLRQVWRUHDGDQGZULWHWRWKHWDVNIXQFWLRQDUJXPHQWV5HIHUWRWKHVHFWLRQVRQ$&&URXWLQHVDQG7)
URXWLQHVIRULQIRUPDWLRQRQVSHFLÀFURXWLQHVWKDWZRUNZLWKWDVNIXQFWLRQDUJXPHQWV
1RWHWKDWZKHQ3/,DSSOLFDWLRQVDUHFDOOHGWKH\DUHSDVVHGWZRRUWKUHH&DUJXPHQWVGDWDUHDVRQDQGSDUDPYF
7KHVHDUJXPHQWVDUHQRWWKHVDPHDVWKHWDVNIXQFWLRQDUJXPHQWVWKDWDSSHDULQWKH9HULORJ+'/VRXUFHFRGH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
3/,LQFOXGHÀOHVIRU7)DQG$&&URXWLQHV
3/, DSSOLFDWLRQV WKDW XVH WKH7) URXWLQHV VKDOO LQFOXGH WKH ÀOH YHULXVHUK 3/, DSSOLFDWLRQV WKDW XVH WKH$&&
URXWLQHV VKDOO LQFOXGH WKH ÀOH DFFBXVHUK 7KHVH ÀOHV GHÀQH FRQVWDQWV VWUXFWXUHV DQG RWKHU GDWD XVHG E\ WKH
OLEUDU\RI3/,URXWLQHVDQGWKHLQWHUIDFHPHFKDQLVP7KHÀOHVDUHOLVWHGLQDQQH[HV&DQG'
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
8VLQJ$&&URXWLQHV
7KLVVHFWLRQSUHVHQWVDJHQHUDOGLVFXVVLRQRIKRZDQGZK\WRXVH3/,$&&URXWLQHV6HFWLRQGHÀQHVWKH$&&
URXWLQHV\QWD[OLVWHGLQDOSKDEHWLFDORUGHU
$&&URXWLQHGHÀQLWLRQ
$&& URXWLQHV DUH & SURJUDPPLQJ ODQJXDJH IXQFWLRQV WKDW SURYLGH SURFHGXUDO DFFHVV WR LQIRUPDWLRQ ZLWKLQ WKH
9HULORJ+'/
$&&URXWLQHVSHUIRUPRQHRIWZRIXQFWLRQV
D
5HDGGDWDDERXWSDUWLFXODUREMHFWVLQWKH9HULORJ+'/GHVFULSWLRQGLUHFWO\IURPLQWHUQDOGDWDVWUXFWXUHV
E
:ULWHQHZLQIRUPDWLRQDERXWFHUWDLQREMHFWVLQWKH9HULORJ+'/GHVFULSWLRQLQWRWKHLQWHUQDOGDWDVWUXFWXUHV
$&&URXWLQHVVKDOOUHDGLQIRUPDWLRQDERXWWKHIROORZLQJREMHFWV
³
³
³
³
³
³
³
³
³
³
³
³
³
³
0RGXOHLQVWDQFHV
0RGXOHSRUWV
0RGXOHSDWKV
,QWHUPRGXOHSDWKV
7RSOHYHOPRGXOHV
3ULPLWLYHLQVWDQFHV
3ULPLWLYHWHUPLQDOV
1HWV
5HJLVWHUV
3DUDPHWHUV
6SHFSDUDPV
7LPLQJFKHFNV
1DPHGHYHQWV
,QWHJHUUHDODQGWLPHYDULDEOHV
$&&URXWLQHVVKDOOUHDGDQGZULWHLQIRUPDWLRQRQWKHIROORZLQJREMHFWV
³
³
³
³
³
³
³
,QWHUPRGXOHSDWKGHOD\V
0RGXOHSDWKGHOD\V
0RGXOHLQSXWSRUWGHOD\V0,3'V
3ULPLWLYHLQVWDQFHGHOD\V
7LPLQJFKHFNOLPLWV
5HJLVWHUORJLFYDOXHV
6HTXHQWLDO8'3ORJLFYDOXHV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHKDQGOHGDWDW\SH
$ KDQGOHLVDSUHGHÀQHGGDWDW\SHWKDWLVDSRLQWHUWRDVSHFLÀFREMHFWLQWKHGHVLJQKLHUDUFK\(DFKKDQGOHFRQYH\V
LQIRUPDWLRQ WR$&& URXWLQHV DERXW D XQLTXH LQVWDQFH RI DQ DFFHVVLEOH REMHFW³LQIRUPDWLRQ DERXW WKH W\SH RI WKH
REMHFWSOXVKRZDQGZKHUHWRÀQGGDWDDERXWWKHREMHFW
0RVW $&& URXWLQHV UHTXLUH D KDQGOH DUJXPHQW WR LQGLFDWH WKH REMHFWV DERXW ZKLFK WKH\ QHHG WR UHDG RU ZULWH
LQIRUPDWLRQ7KH3/,SURYLGHVWZRFDWHJRULHVRI$&&URXWLQHVWKDWUHWXUQKDQGOHVIRUREMHFWVKDQGOHURXWLQHVZKLFK
EHJLQZLWKWKHSUHÀ[ DFFBKDQGOHBDQGQH[WURXWLQHVZKLFKEHJLQZLWKWKHSUHÀ[ DFFBQH[WB5HIHUWRIRUD
GLVFXVVLRQRIKDQGOHURXWLQHVDQGIRUPRUHLQIRUPDWLRQDERXWQH[WURXWLQHV
+DQGOHV VKDOO EH SDVVHG WR DQG IURP $&& URXWLQHV WKURXJK KDQGOH YDULDEOHV 7R GHFODUH D KDQGOH YDULDEOH WKH
NH\ZRUGKDQGOHDOOORZHUFDVHVKDOOEHXVHGIROORZHGE\WKHYDULDEOHQDPHDVLQWKLVH[DPSOH
KDQGOHQHWBKDQGOH
$IWHUGHFODULQJDKDQGOHYDULDEOHLWFDQEHSDVVHGWRDQ\$&&URXWLQHWKDWUHTXLUHVDKDQGOHDUJXPHQWRUEHXVHGWR
UHFHLYH D KDQGOH UHWXUQHG E\ DQ $&& URXWLQH 7KH IROORZLQJ &ODQJXDJH FRGH IUDJPHQW XVHV WKH YDULDEOH
QHWBKDQGOHWRVWRUHWKHKDQGOHUHWXUQHGE\WKH$&&URXWLQHDFFBKDQGOHBREMHFW
KDQGOHQHWBKDQGOH
QHWBKDQGOH DFFBKDQGOHBREMHFWWRSPRGZ
8VLQJ$&&URXWLQHV
+HDGHUÀOHV
7KHKHDGHUÀOHDFFBXVHUKVKDOOEHLQFOXGHGLQDQ\&ODQJXDJHVRXUFHÀOHFRQWDLQLQJDQDSSOLFDWLRQSURJUDPWKDW
FDOOV$&&URXWLQHV7KHDFFBXVHUKÀOHLVOLVWHGLQDQQH[&
,QLWLDOL]LQJ$&&URXWLQHV
7KH$&&URXWLQH DFFBLQLWLDOL]HVKDOOLQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHVDQGVKDOOEHFDOOHGIURPWKH&
ODQJXDJHDSSOLFDWLRQSURJUDPEHIRUHWKHSURJUDPLQYRNHVDQ\RWKHU$&&URXWLQHV
6HWWLQJWKHGHYHORSPHQWYHUVLRQ
$IWHULQLWLDOL]LQJ$&&URXWLQHVWKHFRQÀJXUDWLRQSDUDPHWHU DFF'HYHORSPHQW9HUVLRQFDQEHVHWWRLQGLFDWHZKLFK
YHUVLRQRI$&&URXWLQHVZDVXVHGWRGHYHORSWKHDSSOLFDWLRQ&RQÀJXULQJWKH DFF'HYHORSPHQW9HUVLRQSDUDPHWHU
FDQHQVXUHWKDWIXWXUHUHOHDVHVRI$&&URXWLQHVFDQUXQ3/,DSSOLFDWLRQFRGHWKHVDPHDVZKHQWKHFRGHZDVZULWWHQ
7R VHW WKLV SDUDPHWHU FDOO DFFBFRQÀJXUH DIWHU FDOOLQJ DFFBLQLWLDOL]H 7KH IROORZLQJ H[DPSOH VHWV
DFF'HYHORSPHQW9HUVLRQWRWKH,(((6WG3/,YHUVLRQRI$&&URXWLQHV
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
([LWLQJ$&&URXWLQHV
%HIRUH H[LWLQJ D &ODQJXDJH DSSOLFDWLRQ SURJUDP WKDW FDOOV$&& URXWLQHV WKH$&& URXWLQH DFFBFORVH VKRXOG EH
FDOOHG 7KLV URXWLQH VKDOO UHVHW$&& URXWLQH FRQÀJXUDWLRQ SDUDPHWHUV EDFN WR WKHLU GHIDXOWV DQG LW VKDOO DOVR IUHH
PHPRU\DOORFDWHGE\WKH$&&URXWLQHV
/LVWRI$&&URXWLQHVE\PDMRUFDWHJRU\
7KH$&&URXWLQHVDUHGLYLGHGLQWRWKHIROORZLQJPDMRUFDWHJRULHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
³ )HWFKURXWLQHV
³ +DQGOHURXWLQHV
³ 1H[WURXWLQHV
³ 0RGLI\URXWLQHV
³ 9&/URXWLQHV
³ 0LVFHOODQHRXVURXWLQHV
7KLVFODXVHFRQWDLQVDVXPPDU\OLVWRIHDFKPDMRUFDWHJRU\7KH$&&URXWLQHVVRUWHGE\WKHW\SHVRIREMHFWVWKH\
ZRUNZLWKDUHOLVWHGLQ6HFWLRQSUHVHQWVDQDOSKDEHWLFDOOLVWRIDOO$&&URXWLQHVZLWKWKHLUIXQFWLRQVV\QWD[
DQGXVDJH
)HWFKURXWLQHV
)HWFKURXWLQHVVKDOOUHWXUQDYDULHW\RILQIRUPDWLRQDERXWGLIIHUHQWREMHFWVLQWKHGHVLJQKLHUDUFK\7KHQDPHRIHDFK
URXWLQH EHJLQV ZLWK WKH SUHÀ[ DFFBIHWFKB DQG LQGLFDWHV WKH W\SH RI LQIRUPDWLRQ GHVLUHG )RU H[DPSOH
DFFBIHWFKBIXOOQDPHUHWULHYHVWKHIXOOKLHUDUFKLFDOSDWKQDPHIRUDQ\QDPHGREMHFWZKLOH DFFBIHWFKBSDUDPYDO
UHWULHYHVWKHYDOXHRIDSDUDPHWHURUVSHFSDUDP
7DEOH³/LVWRIIHWFKURXWLQHV
$&&URXWLQH
'HVFULSWLRQ
DFFBIHWFKBDUJF
*HWWKHQXPEHURILQYRFDWLRQFRPPDQGOLQHDUJXPHQWV
DFFBIHWFKBDUJY
*HWWKHLQYRFDWLRQFRPPDQGOLQHDUJXPHQWV
DFFBIHWFKBDWWULEXWH
*HWWKHYDOXHRID9HULORJDWWULEXWHSDUDPHWHURUVSHFSDUDP
DFFBIHWFKBGHIQDPH
*HWWKHGHÀQLWLRQQDPHRIDPRGXOHRUSULPLWLYH
DFFBIHWFKBGHOD\V
*HWWKHH[LVWLQJGHOD\VIRUDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNLQWHUPRG
XOHSDWKRUPRGXOHLQSXWSRUW
DFFBIHWFKBGHOD\BPRGH
*HWWKHGHOD\PRGHRIDPRGXOHLQVWDQFH
DFFBIHWFKBGLUHFWLRQ
*HWWKHGLUHFWLRQRIDPRGXOHSRUWRUSULPLWLYHWHUPLQDO
DFFBIHWFKBHGJH
*HWWKHHGJHVSHFLÀHURIPRGXOHSDWKLQSXWWHUPLQDO
DFFBIHWFKBIXOOQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPHRIDQREMHFW
DFFBIHWFKBIXOOW\SH
*HWWKHIXOOW\SHGHVFULSWLRQRIDQREMHFWDVDSUHGHÀQHGLQWHJHUFRQVWDQW
DFFBIHWFKBLQGH[
*HWWKHLQGH[QXPEHURIDSRUWRUWHUPLQDO
DFFBIHWFKBORFDWLRQ
*HWWKHORFDWLRQRIDQREMHFWLQD9HULORJVRXUFHÀOH
DFFBIHWFKBQDPH
*HWWKHORFDOQDPHRIDQREMHFW
DFFBIHWFKBSDUDPW\SH
*HWWKHGDWDW\SHRIDSDUDPHWHURUVSHFSDUDP
DFFBIHWFKBSDUDPYDO
*HWWKHYDOXHRIDSDUDPHWHURUVSHFSDUDP
DFFBIHWFKBSRODULW\
*HWWKHSRODULW\RIDPRGXOHSDWKRUGDWDSDWK
DFFBIHWFKBSUHFLVLRQ
*HWWKHVLPXODWLRQWLPHSUHFLVLRQ
DFFBIHWFKBSXOVHUH
*HWWKHFXUUHQWSXOVHKDQGOLQJYDOXHVRIDPRGXOHSDWK
DFFBIHWFKBUDQJH
*HWWKHUDQJHRIDYHFWRU
DFFBIHWFKBVL]H
*HWWKHELWVL]HRIDYHFWRURUSRUW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³/LVWRIIHWFKURXWLQHVFRQWLQXHG
$&&URXWLQH
'HVFULSWLRQ
DFFBIHWFKBWIDUJ
*HWWKHYDOXHRIDV\VWHPWDVNIXQFWLRQDUJXPHQWDVDGRXEOH
DFFBIHWFKBWIDUJBLQW
*HWWKHYDOXHRIDV\VWHPWDVNIXQFWLRQDUJXPHQWDVDQLQWHJHU
DFFBIHWFKBWIDUJBVWU
*HWWKHYDOXHRIDV\VWHPWDVNIXQFWLRQDUJXPHQWDVDVWULQJ
DFFBIHWFKBWLPHVFDOHBLQIR
*HWWKHWLPHVFDOHLQIRUPDWLRQIRUDQREMHFW
DFFBIHWFKBW\SH
*HWWKHJHQHUDOW\SHFODVVLÀFDWLRQRIDQREMHFWDVDQLQWHJHUFRQVWDQW
DFFBIHWFKBW\SHBVWU
*HWWKHVWULQJUHSUHVHQWDWLRQRIDW\SHRUIXOOW\SHLQWHJHUFRQVWDQW
DFFBIHWFKBYDOXH
*HWWKHORJLFRUVWUHQJWKYDOXHRIDQHWUHJLVWHURUYDULDEOH
+DQGOHURXWLQHV
+DQGOHURXWLQHVFDQUHWXUQKDQGOHVWRDYDULHW\RIREMHFWVLQWKHGHVLJQKLHUDUFK\7KHQDPHRIHDFKURXWLQHEHJLQV
ZLWKWKHSUHÀ[ DFFBKDQGOHBDQGLQGLFDWHVWKHW\SHRIKDQGOHGHVLUHG)RUH[DPSOHDFFBKDQGOHBREMHFWUHWULHYHVD
KDQGOHIRUDQDPHGREMHFWZKLOH DFFBKDQGOHBFRQQUHWULHYHVDKDQGOHIRUDQHWFRQQHFWHGWRDSDUWLFXODUWHUPLQDO
(DFKKDQGOHURXWLQHVKDOOUHWXUQDKDQGOHWRDQREMHFW7KLVKDQGOHFDQLQWXUQEHSDVVHGDVDQDUJXPHQWWRRWKHU
$&&URXWLQHV
7DEOH³/LVWRIKDQGOHURXWLQHV
$&&URXWLQH
'HVFULSWLRQ
DFFBKDQGOHBE\BQDPH
*HWWKHKDQGOHWRDQ\QDPHGREMHFW
DFFBKDQGOHBFRQGLWLRQ
*HWWKHKDQGOHWRWKHFRQGLWLRQRIDPRGXOHSDWKGDWDSDWKRUWLPLQJFKHFN
DFFBKDQGOHBFRQQ
*HWWKHKDQGOHWRWKHQHWFRQQHFWHGWRDSULPLWLYHSDWKRUWLPLQJFKHFNWHU
PLQDO
DFFBKDQGOHBGDWDSDWK
*HWWKHKDQGOHWRDGDWDSDWK
DFFBKDQGOHBKLFRQQ
*HWWKHKDQGOHWRWKHKLHUDUFKLFDOO\KLJKHUQHWFRQQHFWHGWRDPRGXOHSRUWELW
DFFBKDQGOHBLQWHUDFWLYHBVFRSH
*HWWKHKDQGOHWRWKHFXUUHQWVLPXODWLRQLQWHUDFWLYHVFRSH
DFFBKDQGOHBLWIDUJ
*HWWKHKDQGOHWRDQDUJXPHQWRIDVSHFLÀFV\VWHPWDVNIXQFWLRQLQVWDQFH
DFFBKDQGOHBORFRQQ
*HWWKHKDQGOHWRWKHKLHUDUFKLFDOO\ORZHUQHWFRQQHFWHGWRDPRGXOHSRUWELW
DFFBKDQGOHBPRGSDWK
*HWWKHKDQGOHWRDPRGXOHSDWKGHOD\
DFFBKDQGOHBQRWLÀHU
*HWWKHKDQGOHWRWKHQRWLÀHUDUJXPHQWRIDWLPLQJFKHFN
DFFBKDQGOHBREMHFW
*HWWKHKDQGOHWRDQ\QDPHGREMHFW
DFFBKDQGOHBSDUHQW
*HWWKHKDQGOHWRWKHSDUHQWRIDQREMHFW
DFFBKDQGOHBSDWK
*HWWKHKDQGOHWRDQLQWHUPRGXOHSDWK
DFFBKDQGOHBSDWKLQ
*HWWKHKDQGOHWRWKHÀUVWQHWFRQQHFWHGWRDPRGXOHSDWKVRXUFH
DFFBKDQGOHBSDWKRXW
*HWWKHKDQGOHWRWKHÀUVWQHWFRQQHFWHGWRDPRGXOHSDWKGHVWLQDWLRQ
DFFBKDQGOHBSRUW
*HWWKHKDQGOHWRDPRGXOHSRUWEDVHGRQWKHSRUWLQGH[
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³/LVWRIKDQGOHURXWLQHVFRQWLQXHG
$&&URXWLQH
'HVFULSWLRQ
DFFBKDQGOHBVFRSH
*HWWKHKDQGOHWRWKHVFRSHFRQWDLQLQJDQREMHFW
DFFBKDQGOHBVLPXODWHGBQHW
*HWWKHKDQGOHWRWKHQHWDVVRFLDWHGZLWKDFROODSVHGQHW
DFFBKDQGOHBWFKN
*HWWKHKDQGOHWRDWLPLQJFKHFN
DFFBKDQGOHBWFKNDUJ
*HWWKHKDQGOHWRWKHÀUVWDUJXPHQWRIDWLPLQJFKHFN
DFFBKDQGOHBWFKNDUJ
*HWWKHKDQGOHWRWKHVHFRQGDUJXPHQWRIDWLPLQJFKHFN
DFFBKDQGOHBWHUPLQDO
*HWWKHKDQGOHWRWHUPLQDORIDSULPLWLYHEDVHGRQWKHWHUPLQDOLQGH[
DFFBKDQGOHBWIDUJ
*HWDKDQGOHWRWKHREMHFWQDPHGLQDV\VWHPWDVNIXQFWLRQDUJXPHQW
DFFBKDQGOHBWÀQVW
*HWWKHKDQGOHWKHFXUUHQWLQVWDQFHRIDV\VWHPWDVNIXQFWLRQ
1H[WURXWLQHV
:KHQXVHGLQVLGHD&ORRSFRQVWUXFWQH[WURXWLQHVVKDOOÀQGHDFKREMHFWRIDJLYHQW\SHWKDWLVUHODWHGWRDSDUWLFXODU
UHIHUHQFHREMHFWLQWKHGHVLJQKLHUDUFK\7KHQDPHRIHDFKURXWLQHEHJLQVZLWKWKHSUHÀ[DFFBQH[WBDQGLQGLFDWHVWKH
W\SHRIREMHFWGHVLUHGNQRZQDVWKHWDUJHWREMHFW)RUH[DPSOHDFFBQH[WBQHWUHWULHYHVHDFKQHWLQDPRGXOHZKLOH
DFFBQH[WBGULYHUUHWULHYHVHDFKWHUPLQDOGULYLQJDQHW(DFKFDOOWRDQH[WURXWLQHUHWXUQVDKDQGOHWRWKHREMHFWLW
ÀQGV
0RVWQH[WURXWLQHVUHTXLUHWZRDUJXPHQWV
³ 7KHÀUVWDUJXPHQWVKDOOEHDKDQGOHWRDUHIHUHQFHREMHFW
³ 7KHVHFRQGDUJXPHQWVKDOOEHDKDQGOHWKDWLQGLFDWHVZKHWKHUWRUHWULHYHWKHÀUVWRUQH[WWDUJHWREMHFW
7KHUHIHUHQFHREMHFWVKDOOLQGLFDWHZKHUHWKHQH[WURXWLQHVKDOOORRNIRUWKHWDUJHWREMHFW7KHWDUJHWREMHFWLVWKHW\SH
RIREMHFWWREHUHWXUQHGE\DQH[WURXWLQH
7DEOHVXPPDUL]HVKRZQH[WURXWLQHVVKDOOÀQGHDFKWDUJHWREMHFWDVVRFLDWHGZLWKDJLYHQUHIHUHQFHREMHFW
7DEOH³+RZQH[WURXWLQHVXVHWKHWDUJHWREMHFWDUJXPHQW
:KHQ
$QH[WURXWLQHVKDOOUHWXUQ
7KHWDUJHWREMHFWLVQXOO
$KDQGOHWRWKHÀUVWWDUJHWREMHFWUHODWHGWRWKHUHIHUHQFHREMHFW
7KHWDUJHWREMHFWLVDKDQGOHWRWKHODVWWDUJHWREMHFW
UHWXUQHG
$KDQGOHWRWKHQH[WWDUJHWREMHFWUHODWHGWRWKHUHIHUHQFHREMHFW
1RWDUJHWREMHFWVUHPDLQIRUWKHUHIHUHQFHREMHFW
$QXOOKDQGOH
1RWDUJHWREMHFWVDUHIRXQGLQLWLDOO\IRUWKHUHIHUHQFHREMHFW
$QXOOKDQGOH
$QHUURURFFXUV
$QXOOKDQGOH
127(³2EMHFWVFDQEHUHWXUQHGLQDQDUELWUDU\RUGHU
(DFK FDOO WR D QH[W URXWLQH VKDOO UHWXUQ RQO\ RQH KDQGOH 7KHUHIRUH WR UHWULHYH DOO WDUJHW REMHFWV IRU D SDUWLFXODU
UHIHUHQFHREMHFWWKHIROORZLQJSURFHVVFDQEHXVHG
D
&KRVHDQDSSURSULDWH$&&URXWLQHWRUHWULHYHWKHKDQGOHRIWKHGHVLUHGUHIHUHQFHREMHFW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
E
6HWWKHWDUJHWREMHFWKDQGOHYDULDEOHWRQXOO:KHQDQH[WURXWLQHLVFDOOHGZLWKDQXOOWDUJHWKDQGOHLW
VKDOOUHWXUQWKHÀUVWWDUJHWDVVRFLDWHGZLWKWKHUHIHUHQFH
F
&DOO WKH QH[W URXWLQH DVVLJQLQJ WKH UHWXUQ YDOXH WR WKH VDPH YDULDEOH DV WKH WDUJHW REMHFW DUJXPHQW 7KLV
DXWRPDWLFDOO\XSGDWHVWKHWDUJHWREMHFWDUJXPHQWWRSRLQWWRWKHODVWREMHFWIRXQG
G
3ODFHWKHQH[WURXWLQHFDOOLQVLGHD&ZKLOHORRSWKDWWHUPLQDWHVZKHQWKHORRSFRQWUROYDOXHLVQXOO:KHQ
DQH[WURXWLQHFDQQRWDFFHVVDQ\PRUHWDUJHWREMHFWVLWVKDOOUHWXUQDQXOO
7KHIROORZLQJH[DPSOHGLVSOD\BQHWBQDPHVXVHVDQH[WURXWLQHWRGLVSOD\WKHQDPHVRIDOOQHWVLQDPRGXOH
LQFOXGHDFFBXVHUK
GLVSOD\BQHWBQDPHV
^
KDQGOH
PRGXOHBKDQGOH
KDQGOH
QHWBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRUDFFHVVURXWLQHV
DFFBLQLWLDOL]H
VHWWKHGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
GLVSOD\QDPHVRIDOOQHWVLQWKHPRGXOH
QHWBKDQGOH QXOO
ZKLOHQHWBKDQGOH DFFBQH[WBQHWPRGXOHBKDQGOHQHWBKDQGOH
LRBSULQWI1HWQDPHLVV?QDFFBIHWFKBIXOOQDPHQHWBKDQGOH
`
DFFBFORVH
7DEOH³/LVWRIQH[WURXWLQHV
$&&URXWLQH
'HVFULSWLRQ
DFFBQH[W
*HWKDQGOHVWRDOOREMHFWVRIDVHWRIW\SHV
DFFBQH[WBELW
*HWKDQGOHVWRDOOELWVRIDSRUWRUYHFWRU
DFFBQH[WBFHOO
*HWKDQGOHVWRDOOFHOOPRGXOHVLQWKHFXUUHQWKLHUDUFK\DQGEHORZ
DFFBQH[WBFHOOBORDG
*HWKDQGOHVWRDOOFHOOORDGVRQDQHW
DFFBQH[WBFKLOG
*HWKDQGOHVWRDOOPRGXOHLQVWDQFHVZLWKLQDPRGXOH
DFFBQH[WBGULYHU
*HWKDQGOHVWRDOOSULPLWLYHWHUPLQDOVWKDWGULYHDQHW
DFFBQH[WBKLFRQQ
*HWKDQGOHVWRDOOQHWVFRQQHFWHGKLHUDUFKLFDOO\KLJKHUWRDPRGXOHSRUW
DFFBQH[WBLQSXW
*HWKDQGOHVWRDOOLQSXWWHUPLQDOVRIDPRGXOHSDWKRUGDWDSDWK
DFFBQH[WBORDG
*HWKDQGOHVWRDOOSULPLWLYHWHUPLQDOVGULYHQE\DQHW
DFFBQH[WBORFRQQ
*HWKDQGOHVWRDOOQHWVFRQQHFWHGKLHUDUFKLFDOO\ORZHUWRDPRGXOHSRUW
DFFBQH[WBPRGSDWK
*HWKDQGOHVWRDOOSDWKGHOD\VLQDPRGXOH
DFFBQH[WBQHW
*HWKDQGOHVWRDOOQHWVLQDPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³/LVWRIQH[WURXWLQHVFRQWLQXHG
$&&URXWLQH
'HVFULSWLRQ
DFFBQH[WBRXWSXW
*HWKDQGOHVWRDOORXWSXWWHUPLQDOVRIDPRGXOHSDWKRUGDWDSDWK
DFFBQH[WBSDUDPHWHU
*HWKDQGOHVWRDOOSDUDPHWHUVLQDPRGXOH
DFFBQH[WBSRUW
*HWKDQGOHVWRDOOSRUWVRIDPRGXOHRUFRQQHFWHGWRDQHW
DFFBQH[WBSRUWRXW
*HWKDQGOHVWRDOORXWSXWSRUWVRIDPRGXOH
DFFBQH[WBSULPLWLYH
*HWKDQGOHVWRDOOSULPLWLYHLQVWDQFHVLQDPRGXOH
DFFBQH[WBVFRSH
*HWKDQGOHVWRDOOKLHUDUFK\VFRSHVZLWKLQDVFRSH
DFFBQH[WBVSHFSDUDP
*HWKDQGOHVWRDOOVSHFLI\EORFNSDUDPHWHUVLQDPRGXOH
DFFBQH[WBWFKN
*HWKDQGOHVWRDOOWLPLQJFKHFNVLQDPRGXOH
DFFBQH[WBWHUPLQDO
*HWKDQGOHVWRDOOWHUPLQDOVRIDSULPLWLYH
DFFBQH[WBWRSPRG
*HWKDQGOHVWRDOOWRSOHYHOPRGXOHV
0RGLI\URXWLQHV
0RGLI\ URXWLQHV VKDOO DOWHU WKH YDOXHV RI D YDULHW\ RI REMHFWV LQ WKH GHVLJQ KLHUDUFK\7DEOH OLVWV WKH W\SHV RI
YDOXHVWKDWVKDOOEHPRGLÀHGIRUSDUWLFXODUREMHFWV
7DEOH³9DOXHVWKDWFDQEHPRGLÀHG
0RGLI\URXWLQHVDOWHU
)RUWKHVHREMHFWV
'HOD\YDOXHV
3ULPLWLYHV
0RGXOHSDWKV
,QWHUPRGXOHSDWKV
0RGXOHLQSXWSRUWV
7LPLQJFKHFNV
/RJLFYDOXHV
5HJLVWHUGDWDW\SHV
1HWGDWDW\SHV
6HTXHQWLDO8'3V
3XOVHKDQGOLQJYDOXHV
0RGXOHSDWKV
0RUHGHWDLOVRQXVLQJWKHDFFBDSSHQGBGHOD\VDQGDFFBIHWFKBGHOD\V$&&URXWLQHVDUHSURYLGHGLQ
7DEOH³/LVWRIPRGLI\URXWLQHV
$&&URXWLQH
'HVFULSWLRQ
DFFBDSSHQGBGHOD\V
$GGGHOD\VWRH[LVWLQJGHOD\VRQSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNV
DQGPRGXOHLQSXWSRUWV
DFFBDSSHQGBSXOVHUH
$GGWRH[LVWLQJSXOVHFRQWUROYDOXHVRIDPRGXOHSDWK
DFFBUHSODFHBGHOD\V
5HSODFHH[LVWLQJGHOD\VRQSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVLQWHU
PRGXOHSDWKVDQGPRGXOHLQSXWSRUWV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³/LVWRIPRGLI\URXWLQHVFRQWLQXHG
$&&URXWLQH
'HVFULSWLRQ
DFFBUHSODFHBSXOVHUH
5HSODFHH[LVWLQJYDOXHVRQSXOVHFRQWUROYDOXHVRIDPRGXOHSDWK
DFFBVHWBSXOVHUH
6HWSXOVHFRQWUROYDOXHVRIDPRGXOHSDWKDVDSHUFHQWDJHRISDWKGHOD\
DFFBVHWBYDOXH
6HWDQGSURSDJDWHDORJLFYDOXHRQWRDUHJLVWHUYDULDEOHRUVHTXHQWLDO8'3
FRQWLQXRXVO\DVVLJQGHDVVLJQDUHJLVWHU
IRUFHUHOHDVHDQHWRUUHJLVWHU
0LVFHOODQHRXVURXWLQHV
0LVFHOODQHRXVURXWLQHVVKDOOSHUIRUPDYDULHW\RIRSHUDWLRQVVXFKDVLQLWLDOL]LQJDQGFRQÀJXULQJWKH$&&URXWLQH
HQYLURQPHQW
7DEOH³/LVWRIPLVFHOODQHRXVURXWLQHV
$&&URXWLQH
'HVFULSWLRQ
DFFBFORVH
&ORVH$&&URXWLQHHQYLURQPHQW
DFFBFROOHFW
&ROOHFWDQDUUD\RIKDQGOHVIRUDUHIHUHQFHREMHFW
DFFBFRPSDUHBKDQGOHV
'HWHUPLQHLIWZRKDQGOHVDUHIRUWKHVDPHREMHFW
DFFBFRQÀJXUH
6HWWKH$&&URXWLQHHQYLURQPHQWSDUDPHWHUV
DFFBFRXQW
&RXQWWKHQXPEHURIREMHFWVUHODWHGWRDUHIHUHQFHREMHFW
DFFBIUHH
)UHHXSPHPRU\DOORFDWHGE\DFFBFROOHFW
DFFBLQLWLDOL]H
,QLWLDOL]HWKH$&&URXWLQHHQYLURQPHQW
DFFBREMHFWBLQBW\SHOLVW
'HWHUPLQHLIDQREMHFWPDWFKHVDVHWRIW\SHVIXOOW\SHVRUVSHFLDOSURSHUWLHV
DFFBREMHFWBRIBW\SH
'HWHUPLQHLIDQREMHFWPDWFKHVDVSHFLÀFW\SHIXOOW\SHRUVSHFLDOSURSHUW\
DFFBSURGXFWBW\SH
*HWWKHW\SHRIVRIWZDUHSURGXFWEHLQJXVHG
DFFBSURGXFWBYHUVLRQ
*HWWKHYHUVLRQRIVRIWZDUHSURGXFWEHLQJXVHG
DFFBUHOHDVHBREMHFW
5HOHDVHPHPRU\DOORFDWHGE\DFFBQH[WBLQSXWRUDFFBQH[WBRXWSXW
DFFBUHVHWBEXIIHU
5HVHWWKHVWULQJEXIIHU
DFFBVHWBLQWHUDFWLYHBVFRSH
6HWWKHLQWHUDFWLYHVFRSHRIDVRIWZDUHLPSOHPHQWDWLRQ
DFFBVHWBVFRSH
6HWWKHVFRSHXVHGE\DFFBKDQGOHBREMHFW
DFFBYHUVLRQ
*HWWKHYHUVLRQRIWKH$&&URXWLQHVEHLQJXVHG
9&/URXWLQHV
7KH9&/VKDOODOORZD3/,DSSOLFDWLRQWRPRQLWRUVLPXODWLRQYDOXHFKDQJHVRIVHOHFWHGREMHFWV,WFRQVLVWVRIWZR
$&&URXWLQHVWKDWLQVWUXFWD9HULORJVLPXODWRUWRVWDUWRUVWRSLQIRUPLQJDQDSSOLFDWLRQZKHQDQREMHFWFKDQJHVYDOXH
+RZWKH9&/URXWLQHLVXVHGLVGLVFXVVHGLV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³/LVWRI9&/URXWLQHV
$&&URXWLQH
'HVFULSWLRQ
DFFBYFOBDGG
$GGDYDOXHFKDQJHFDOOEDFNRQDQREMHFW
DFFBYFOBGHOHWH
5HPRYHDYDOXHFKDQJHFDOOEDFN
$FFHVVLEOHREMHFWV
$&&URXWLQHVVKDOODFFHVVLQIRUPDWLRQDERXWWKHIROORZLQJREMHFWV
³
³
³
³
³
³
³
³
³
³
³
³
³
³
³
³
0RGXOHLQVWDQFHV
0RGXOHSRUWV
,QGLYLGXDOELWVRIDSRUW
0RGXOHRUGDWDSDWKV
,QWHUPRGXOHSDWKV
7RSOHYHOPRGXOHV
3ULPLWLYHLQVWDQFHV
3ULPLWLYHWHUPLQDOV
1HWVVFDODUVYHFWRUVDQGELWRUSDUWVHOHFWVRIYHFWRUV
5HJLVWHUVVFDODUVYHFWRUVDQGELWRUSDUWVHOHFWVRIYHFWRUV
3DUDPHWHUV
6SHFSDUDPV
7LPLQJFKHFNV
1DPHGHYHQWV
,QWHJHUYDULDEOHVDQGELWRUSDUWVHOHFWVRILQWHJHUV
5HDODQGWLPHYDULDEOHV
7KHIROORZLQJWDEOHVVXPPDUL]HWKHRSHUDWLRQVWKDWFDQEHSHUIRUPHGIRUHDFKRIWKHDERYHREMHFWW\SHV
$&&URXWLQHVWKDWRSHUDWHRQPRGXOHLQVWDQFHV
7DEOH³2SHUDWLRQVRQPRGXOHLQVWDQFHV
7R
8VH
2EWDLQKDQGOHVIRUPRGXOHLQVWDQFHVWDJJHGDVFHOOVZLWKLQDKLHUDUFKL
FDOVFRSHDQGEHORZ
DFFBQH[WBFHOO
2EWDLQKDQGOHVIRUPRGXOHLQVWDQFHVZLWKLQDSDUWLFXODUPRGXOH
LQVWDQFH
2EWDLQDKDQGOHWRWKHSDUHQWWKHPRGXOHWKDWFRQWDLQVWKHLQVWDQFH
*HWWKHLQVWDQFHQDPH
DFFBQH[WBFKLOG
DFFBKDQGOHBSDUHQW
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHPRGXOHGHÀQLWLRQQDPH
DFFBIHWFKBGHIQDPH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³2SHUDWLRQVRQPRGXOHLQVWDQFHVFRQWLQXHG
7R
8VH
*HWWKHIXOOW\SHRIDPRGXOHLQVWDQFHFHOOLQVWDQFHPRGXOHLQVWDQFHRU
WRSOHYHOPRGXOH
DFFBIHWFKBIXOOW\SH
*HWWKHGHOD\PRGHRIDPRGXOHLQVWDQFHQRQH]HURXQLWGLVWULEXWHG
RUSDWK
DFFBIHWFKBGHOD\BPRGH
*HWWLPHVFDOHLQIRUPDWLRQIRUDPRGXOHLQVWDQFH
DFFBIHWFKBWLPHVFDOHBLQIR
$&&URXWLQHVWKDWRSHUDWHRQPRGXOHSRUWV
7DEOH³2SHUDWLRQVRQPRGXOHSRUWV
7R
2EWDLQKDQGOHVIRUSRUWVRIDPRGXOHLQVWDQFH
2EWDLQDKDQGOHIRUDSDUWLFXODUSRUW
2EWDLQDKDQGOHWRWKHSDUHQWWKHPRGXOHLQVWDQFHWKDWFRQWDLQVWKH
SRUW
8VH
DFFBQH[WBSRUW
DFFBKDQGOHBSRUW
DFFBKDQGOHBSDUHQW
2EWDLQKDQGOHVWRKLHUDUFKLFDOO\KLJKHUFRQQHFWHGQHWV
DFFBQH[WBKLFRQQ
2EWDLQKDQGOHVWRKLHUDUFKLFDOO\ORZHUFRQQHFWHGQHWV
DFFBQH[WBORFRQQ
2EWDLQDKDQGOHWRWKHKLHUDUFKLFDOO\KLJKHUFRQQHFWHGQHWRIDVFDODU
PRGXOHSRUWRUELWRIDYHFWRUSRUW
DFFBKDQGOHBKLFRQQ
2EWDLQDKDQGOHWRWKHKLHUDUFKLFDOO\ORZHUFRQQHFWHGQHWRIDVFDODU
PRGXOHSRUWRUELWRIDYHFWRUSRUW
DFFBKDQGOHBORFRQQ
*HWWKHLQVWDQFHQDPH
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHSRUWGLUHFWLRQ
DFFBIHWFKBGLUHFWLRQ
*HWWKHSRUWLQGH[QXPEHU
*HWWKHIXOOW\SHRIDPRGXOHSRUW
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
6HFWLRQ
DFFBIHWFKBLQGH[
DFFBIHWFKBIXOOW\SH
DFFBYFOBDGG
DFFBYFOBGHOHWH
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$&&URXWLQHVWKDWRSHUDWHRQELWVRIDSRUW
7DEOH³2SHUDWLRQVRQELWVRIDSRUW
7R
2EWDLQKDQGOHVIRUELWVRIDPRGXOHSRUW
*HWWKHSRUWQDPH
8VH
DFFBQH[WBELW
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHIXOOW\SHRIDSRUW·VELW
DFFBIHWFKBIXOOW\SH
5HDG0,3'
DFFBIHWFKBGHOD\V
$SSHQGWRH[LVWLQJ0,3'
DFFBDSSHQGBGHOD\V
5HSODFHH[LVWLQJ0,3'
DFFBUHSODFHBGHOD\V
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBDGG
DFFBYFOBGHOHWH
$&&URXWLQHVWKDWRSHUDWHRQPRGXOHSDWKVRUGDWDSDWKV
7DEOH³2SHUDWLRQVRQPRGXOHSDWKVDQGGDWDSDWKV
7R
2EWDLQKDQGOHVIRUPRGXOHSDWKVZLWKLQDVFRSH
DFFBQH[WBPRGSDWK
2EWDLQDKDQGOHWRWKHÀUVWFRQQHFWHGQHWV
DFFBKDQGOHBSDWKLQ
DFFBKDQGOHBSDWKRXW
2EWDLQDKDQGOHWRDPRGXOHSDWK
DFFBKDQGOHBPRGSDWK
2EWDLQDKDQGOHWRDGDWDSDWK
DFFBKDQGOHBGDWDSDWK
2EWDLQDKDQGOHWRDFRQGLWLRQDOH[SUHVVLRQIRUDSDWK
DFFBKDQGOHBFRQGLWLRQ
2EWDLQKDQGOHVIRULQSXWWHUPLQDOVRIDPRGXOHSDWKRUGDWDSDWK
DFFBQH[WBLQSXW
2EWDLQKDQGOHVIRURXWSXWWHUPLQDOVRIDPRGXOHSDWKRUGDWDSDWK
DFFBQH[WBRXWSXW
*HWWKHSDWKQDPH
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHSRODULW\RIDSDWK
DFFBIHWFKBSRODULW\
*HWWKHHGJHVSHFLÀHGIRUDSDWKWHUPLQDO
5HDGSDWKGHOD\V
8VH
DFFBIHWFKBHGJH
DFFBIHWFKBGHOD\V
$SSHQGWRH[LVWLQJSDWKGHOD\V
DFFBDSSHQGBGHOD\V
5HSODFHH[LVWLQJSDWKGHOD\V
DFFBUHSODFHBGHOD\V
5HDGSDWKSXOVHKDQGOLQJ
DFFBIHWFKBSXOVHUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³2SHUDWLRQVRQPRGXOHSDWKVDQGGDWDSDWKV
7R
$SSHQGWRH[LVWLQJSDWKSXOVHFRQWUROYDOXHV
6SHFLI\SDWKSXOVHFRQWUROYDOXHV
8VH
DFFBDSSHQGBSXOVHUH
DFFBVHWBSXOVHUH
)UHHPHPRU\DOORFDWHGE\DFFBQH[WBLQSXWRUDFFBQH[WBRXWSXW
DFFBUHOHDVHBREMHFW
$&&URXWLQHVWKDWRSHUDWHRQLQWHUPRGXOHSDWKV
7DEOH³2SHUDWLRQVRQLQWHUPRGXOHSDWKV
7R
8VH
2EWDLQDKDQGOHIRUDQLQWHUPRGXOHSDWK
DFFBKDQGOHBSDWK
*HWWKHIXOOW\SHRIDQLQWHUPRGXOHSDWK
DFFBIHWFKBIXOOW\SH
5HDGLQWHUPRGXOHSDWKGHOD\V
DFFBIHWFKBGHOD\V
0RGLI\LQWHUPRGXOHSDWKGHOD\V
DFFBUHSODFHBGHOD\V
$&&URXWLQHVWKDWRSHUDWHRQWRSOHYHOPRGXOHV
7DEOH³2SHUDWLRQVRQWRSOHYHOPRGXOHV
7R
2EWDLQKDQGOHVIRUWRSOHYHOPRGXOHVLQDGHVLJQ
*HWWKHPRGXOHQDPH
8VH
DFFBQH[WBWRSPRG
DFFBIHWFKBQDPH
DFFBIHWFKBIXOOQDPH
DFFBIHWFKBGHIQDPH
$&&URXWLQHVWKDWRSHUDWHRQSULPLWLYHLQVWDQFHV
7DEOH³2SHUDWLRQVRQSULPLWLYHLQVWDQFHV
7R
8VH
2EWDLQKDQGOHVIRUSULPLWLYHLQVWDQFHVZLWKLQDPRGXOHLQVWDQFH
DFFBQH[WBSULPLWLYH
2EWDLQDKDQGOHWRWKHSDUHQWWKHPRGXOHWKDWFRQWDLQVWKHSULPLWLYH
DFFBKDQGOHBSDUHQW
*HWWKHLQVWDQFHQDPH
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHGHÀQLWLRQQDPH
DFFBIHWFKBGHIQDPH
*HWWKHSULPLWLYHIXOOW\SH
DFFBIHWFKBIXOOW\SH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³2SHUDWLRQVRQSULPLWLYHLQVWDQFHV
7R
5HDGGHOD\V
8VH
DFFBIHWFKBGHOD\V
$SSHQGWRH[LVWLQJSULPLWLYHGHOD\V
DFFBDSSHQGBGHOD\V
5HSODFHH[LVWLQJSULPLWLYHGHOD\V
DFFBUHSODFHBGHOD\V
$&&URXWLQHVWKDWRSHUDWHRQSULPLWLYHWHUPLQDOV
7DEOH³2SHUDWLRQVRQSULPLWLYHWHUPLQDOV
7R
8VH
2EWDLQKDQGOHVIRUWHUPLQDOVRIDSULPLWLYHLQVWDQFH
DFFBQH[WBWHUPLQDO
2EWDLQDKDQGOHWRWKHQHWFRQQHFWHGWRWKHWHUPLQDO
DFFBKDQGOHBFRQQ
2EWDLQDKDQGOHWRWKHSDUHQWSULPLWLYHLQVWDQFHFRQWDLQLQJWKH
WHUPLQDO
DFFBKDQGOHBSDUHQW
*HWWKHGLUHFWLRQLQSXWRXWSXWLQRXW
DFFBIHWFKBGLUHFWLRQ
*HWWKHWHUPLQDOLQGH[QXPEHU
DFFBIHWFKBLQGH[
*HWWKHIXOOW\SH
DFFBIHWFKBIXOOW\SH
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBDGG
DFFBYFOBGHOHWH
$&&URXWLQHVWKDWRSHUDWHRQQHWV
7DEOH³2SHUDWLRQVRQQHWV
7R
2EWDLQKDQGOHVIRUQHWVZLWKLQDPRGXOHLQVWDQFH
DFFBQH[WBQHW
2EWDLQDKDQGOHWRWKHSDUHQWWKHPRGXOHLQVWDQFHWKDWFRQWDLQVWKHQHW
DFFBKDQGOHBSDUHQW
'HWHUPLQHLIQHWLVVFDODUYHFWRUFROODSVHGRUH[SDQGHG
DFFBREMHFWBRIBW\SH
2EWDLQKDQGOHVWRELWVRIDYHFWRUQHW
2EWDLQKDQGOHVWRGULYLQJWHUPLQDOVRIWKHQHW
2EWDLQKDQGOHVWRORDGWHUPLQDOVRIWKHQHW
2EWDLQKDQGOHVWRFRQQHFWHGORDGWHUPLQDOVRQO\RQHSHUGULYHQFHOO
SRUW
2EWDLQDKDQGOHWRWKHVLPXODWHGQHWRIDFROODSVHGQHW
*HWWKHQHWQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
8VH
DFFBQH[WBELW
DFFBQH[WBGULYHU
DFFBQH[WBORDG
DFFBQH[WBFHOOBORDG
DFFBKDQGOHBVLPXODWHGBQHW
DFFBIHWFKBQDPH
DFFBIHWFKBIXOOQDPH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³2SHUDWLRQVRQQHWV
7R
*HWWKHQHWYHFWRUVL]H
8VH
DFFBIHWFKBVL]H
*HWWKHPVEDQGOVEYHFWRUUDQJH
DFFBIHWFKBUDQJH
*HWWKHQHWIXOOW\SH
DFFBIHWFKBIXOOW\SH
*HWWKHQHWORJLFRUVWUHQJWKYDOXH
DFFBIHWFKBYDOXH
)RUFHRUUHOHDVHWKHQHWORJLFYDOXH
DFFBVHWBYDOXH
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBDGG
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBGHOHWH
$&&URXWLQHVWKDWRSHUDWHRQUHJLVWHUV
7DEOH³2SHUDWLRQVRQUHJLVWHUV
7R
2EWDLQKDQGOHVWRUHJLVWHUVZLWKLQDJLYHQVFRSH
2EWDLQKDQGOHVWRELWVRIDYHFWRUUHJLVWHU
2EWDLQDKDQGOHWRWKHSDUHQWPRGXOHLQVWDQFHFRQWDLQLQJWKHUHJLVWHU
2EWDLQKDQGOHVWRORDGWHUPLQDOVRIWKHUHJLVWHU
'HWHUPLQHLIUHJLVWHULVVFDODURUYHFWRU
*HWWKHUHJLVWHUQDPH
8VH
DFFBQH[W
DFFBQH[WBELW
DFFBKDQGOHBSDUHQW
DFFBQH[WBORDG
DFFBREMHFWBRIBW\SH
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHUHJLVWHUVL]H
DFFBIHWFKBVL]H
*HWWKHPVEDQGOVEYHFWRUUDQJH
DFFBIHWFKBUDQJH
*HWWKHUHJLVWHUYDOXH
DFFBIHWFKBYDOXH
6HWWKHUHJLVWHUYDOXH
DFFBVHWBYDOXH
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBDGG
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBGHOHWH
$&&URXWLQHVWKDWRSHUDWHRQLQWHJHUUHDODQGWLPHYDULDEOHV
7DEOH³2SHUDWLRQVRQLQWHJHUUHDODQGWLPHYDULDEOHV
7R
2EWDLQKDQGOHVWRYDULDEOHVZLWKLQDJLYHQVFRSH
2EWDLQDKDQGOHWRWKHSDUHQWPRGXOHLQVWDQFHFRQWDLQLQJWKHYDULDEOH
*HWWKHYDULDEOHQDPH
6HFWLRQ
8VH
DFFBQH[W
DFFBKDQGOHBSDUHQW
DFFBIHWFKBQDPH
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³2SHUDWLRQVRQLQWHJHUUHDODQGWLPHYDULDEOHV
7R
*HWWKHIXOOKLHUDUFKLFDOQDPH
8VH
DFFBIHWFKBIXOOQDPH
*HWWKHYDULDEOHYDOXH
DFFBIHWFKBYDOXH
6HWWKHYDULDEOHYDOXH
DFFBVHWBYDOXH
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBDGG
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBGHOHWH
$&&URXWLQHVWKDWRSHUDWHRQQDPHGHYHQWV
7DEOH³2SHUDWLRQVRQQDPHGHYHQWV
7R
2EWDLQKDQGOHVWRQDPHGHYHQWVZLWKLQDJLYHQVFRSH
2EWDLQDKDQGOHWRWKHSDUHQWPRGXOHLQVWDQFHFRQWDLQLQJWKHQDPHG
HYHQW
*HWWKHQDPHGHYHQWQDPH
8VH
DFFBQH[W
DFFBKDQGOHBSDUHQW
DFFBIHWFKBQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBIHWFKBIXOOQDPH
$GG9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
'HOHWH9&/YDOXHFKDQJHFDOOEDFNPRQLWRUV
DFFBYFOBDGG
DFFBYFOBGHOHWH
$&&URXWLQHVWKDWRSHUDWHRQSDUDPHWHUVDQGVSHFSDUDPV
7DEOH³2SHUDWLRQVRQSDUDPHWHUVDQGVSHFSDUDPV
7R
2EWDLQKDQGOHVIRUSDUDPHWHUVZLWKLQDPRGXOHLQVWDQFH
DFFBQH[WBSDUDPHWHU
2EWDLQKDQGOHVIRUVSHFSDUDPVZLWKLQDPRGXOHLQVWDQFH
DFFBQH[WBVSHFSDUDP
2EWDLQDKDQGOHWRWKHSDUHQWWKHPRGXOHLQVWDQFHWKDWFRQWDLQVWKH
SDUDPHWHU
*HWWKHSDUDPHWHURUVSHFSDUDPQDPH
*HWWKHIXOOKLHUDUFKLFDOQDPH
DFFBKDQGOHBSDUHQW
DFFBIHWFKBQDPH
DFFBIHWFKBIXOOQDPH
*HWWKHSDUDPHWHUYDOXHGDWDW\SHLQWHJHUÁRDWLQJSRLQWVWULQJ
DFFBIHWFKBSDUDPW\SH
DFFBIHWFKBIXOOW\SH
*HWWKHYDOXHRIDSDUDPHWHU
DFFBIHWFKBSDUDPYDO
*HWWKHDWWULEXWHYDOXHRIDSDUDPHWHUGHÀQHGZLWKDQDWWULEXWHQDPH
8VH
DFFBIHWFKBDWWULEXWH
DFFBIHWFKBDWWULEXWHBLQW
DFFBIHWFKBDWWULEXWHBVWU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
$&&URXWLQHVWKDWRSHUDWHRQWLPLQJFKHFNV
7DEOH³2SHUDWLRQVRQWLPLQJFKHFNV
7R
2EWDLQKDQGOHVIRUWLPLQJFKHFNVZLWKLQDPRGXOHLQVWDQFH
8VH
DFFBQH[WBWFKN
2EWDLQDKDQGOHWRDVSHFLÀFWLPLQJFKHFN
DFFBKDQGOHBWFKN
2EWDLQDKDQGOHWRDWLPLQJFKHFNWHUPLQDO
DFFBKDQGOHBWFKNDUJ
DFFBKDQGOHBWFKNDUJ
*HWWKHWLPLQJFKHFNIXOOW\SH
DFFBIHWFKBIXOOW\SH
*HWDWLPLQJFKHFNOLPLW
DFFBIHWFKBGHOD\V
$SSHQGWRDQH[LVWLQJWLPLQJFKHFNOLPLW
DFFBDSSHQGBGHOD\V
5HSODFHWRDQH[LVWLQJWLPLQJFKHFNOLPLW
DFFBUHSODFHBGHOD\V
$&&URXWLQHVWKDWRSHUDWHRQWLPLQJFKHFNWHUPLQDOV
7DEOH³2SHUDWLRQVRQWLPLQJFKHFNWHUPLQDOV
7R
8VH
2EWDLQDKDQGOHWRWKHQHWDWWDFKHGWRWLPLQJFKHFNWHUPLQDOV
DFFBKDQGOHBFRQQ
2EWDLQDKDQGOHWRWKHFRQGLWLRQRQDWLPLQJFKHFNWHUPLQDO
DFFBKDQGOHBFRQGLWLRQ
*HWHGJHLQIRUPDWLRQRQDWLPLQJFKHFNWHUPLQDO
DFFBIHWFKBHGJH
$&&URXWLQHVWKDWRSHUDWHRQXVHUGHÀQHGV\VWHPWDVNIXQFWLRQDUJXPHQWV
7DEOH³2SHUDWLRQVRQXVHUGHÀQHGV\VWHPWDVNIXQFWLRQDUJXPHQWV
7R
2EWDLQDKDQGOHIRUDQREMHFWQDPHGLQDWDVNIXQFWLRQDUJXPHQW
8VH
DFFBKDQGOHBWIDUJ
DFFBKDQGOHBLWIDUJ
*HWWKHYDOXHRIDWDVNIXQFWLRQDUJXPHQWDVDGRXEOH
DFFBIHWFKBWIDUJ
DFFBIHWFKBLWIDUJ
*HWWKHYDOXHRIDWDVNIXQFWLRQDUJXPHQWDVDQLQWHJHU
DFFBIHWFKBWIDUJBLQW
DFFBIHWFKBLWIDUJBLQW
*HWWKHYDOXHRIDWDVNIXQFWLRQDUJXPHQWDVDVWULQJSRLQWHU
DFFBIHWFKBWIDUJBVWU
DFFBIHWFKBLWIDUJBVWU
$&&URXWLQHW\SHVDQGIXOOW\SHV
0DQ\REMHFWVLQWKH9HULORJ+'/FDQKDYHERWKDW\SHDQGDIXOOW\SHDVVRFLDWHGZLWKWKHP$W\SHVKDOOEHDJHQHUDO
FODVVLÀFDWLRQRIDQREMHFWZKHUHDVDIXOOW\SHVKDOOEHDVSHFLÀFFODVVLÀFDWLRQ7KHW\SHDQGIXOOW\SHIRUDJLYHQREMHFW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
FDQ EH GLIIHUHQW FRQVWDQWV RU WKH\ FDQ EH WKH VDPH FRQVWDQW )RU H[DPSOH DQ DQG ORJLF JDWH KDV D W\SH RI
DFF3ULPLWLYHDQGDIXOOW\SHRIDFF$QG3ULPLWLYH7KHW\SHDQGIXOOW\SHDUHSUHGHÀQHGLQWHJHUFRQVWDQWVLQWKHÀOH
DFFBXVHUK 6HYHUDO$&& URXWLQHV HLWKHU UHWXUQ D W\SH RU IXOOW\SH YDOXH RU XVH D W\SH RU IXOOW\SH YDOXH DV DQ
DUJXPHQW7DEOHOLVWVDOOW\SHDQGIXOOW\SHFRQVWDQWVWKDWVKDOOEHVXSSRUWHGE\$&&URXWLQHV
7DEOH³/LVWRIDOOSUHGHÀQHGW\SHDQGIXOOW\SHFRQVWDQWV
W\SHFRQVWDQW
IXOOW\SHFRQVWDQW
'HVFULSWLRQ
DFF&RQVWDQW
DFF&RQVWDQW
2EMHFWLVDFRQVWDQW
DFF'DWD3DWK
DFF'DWD3DWK
2EMHFWLVDGDWDSDWKLQDSDWKGHOD\
DFF1DPHG(YHQW
DFF1DPHG(YHQW
2EMHFWLVGHFODUHGDVDQHYHQWGDWDW\SH
DFF)XQFWLRQ
DFF)XQFWLRQ
2EMHFWLVD9HULORJ+'/IXQFWLRQ
DFF,QWHJHU9DU
DFF,QWHJHU9DU
2EMHFWLVGHFODUHGDVDQLQWHJHUGDWDW\SH
DFF0RGXOH
2EMHFWLVDPRGXOHLQVWDQFH
DFF0RGXOH,QVWDQFH
2EMHFWLVDPRGXOHLQVWDQFH
DFF&HOO,QVWDQFH
2EMHFWLVDPRGXOHLQVWDQFHWKDWKDVEHHQGHÀQHGDV
DQ$6,&FHOO
DFF7RS0RGXOH
2EMHFWLVDWRSOHYHOPRGXOH
DFF1HW
2EMHFWLVGHFODUHGDVDQHWGDWDW\SH
DFF6XSSO\
2EMHFWLVGHFODUHGDVDVXSSO\QHWGDWDW\SH
DFF6XSSO\
2EMHFWLVGHFODUHGDVDVXSSO\QHWGDWDW\SH
DFF7UL
2EMHFWLVGHFODUHGDVDWULQHWGDWDW\SH
DFF7ULDQG
2EMHFWLVGHFODUHGDVDWULDQGQHWGDWDW\SH
DFF7ULRU
2EMHFWLVGHFODUHGDVDWULRUQHWGDWDW\SH
DFF7ULUHJ
2EMHFWLVGHFODUHGDVDWULUHJQHWGDWDW\SH
DFF7UL
2EMHFWLVGHFODUHGDVDWULQHWGDWDW\SH
DFF7UL
2EMHFWLVGHFODUHGDVDWULQHWGDWDW\SH
DFF:DQG
2EMHFWLVGHFODUHGDVDZDQGQHWGDWDW\SH
DFF:LUH
2EMHFWLVGHFODUHGDVDZLUHQHWGDWDW\SH
DFF:RU
2EMHFWLVGHFODUHGDVDZRUQHWGDWDW\SH
DFF1HW%LW
DFF1HW%LW
2EMHFWLVDELWVHOHFWRIDQHWGDWDW\SH
DFF2SHUDWRU
DFF2SHUDWRU
2EMHFWLVD9HULORJ+'/RSHUDWRU
DFF3DUDPHWHU
DFF3DUW6HOHFW
2EMHFWLVDSDUDPHWHU
DFF,QWHJHU3DUDP
2EMHFWLVDSDUDPHWHUZLWKDQLQWHJHUYDOXH
DFF5HDO3DUDP
2EMHFWLVDSDUDPHWHUZLWKDUHDOYDOXH
DFF6WULQJ3DUDP
2EMHFWLVDSDUDPHWHUZLWKDVWULQJYDOXH
DFF3DUW6HOHFW
2EMHFWLVDSDUWVHOHFWRIDYHFWRU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³/LVWRIDOOSUHGHÀQHGW\SHDQGIXOOW\SHFRQVWDQWVFRQWLQXHG
W\SHFRQVWDQW
IXOOW\SHFRQVWDQW
DFF3DWK
2EMHFWLVDSDWK
DFF,QWHU0RG3DWK
2EMHFWLVDQLQWHUPRGXOHSDWK
DFF0RG3DWK
2EMHFWLVDPRGXOHSDWK
DFF3DWK7HUPLQDO
2EMHFWLVDWHUPLQDORIDPRGXOHSDWK
DFF3DWK,QSXW
2EMHFWLVDQLQSXWWHUPLQDORIDPRGXOHSDWK
DFF3DWK2XWSXW
2EMHFWLVDQRXWSXWWHUPLQDORIDPRGXOHSDWK
DFF3RUW
DFF3RUW%LW
6HFWLRQ
'HVFULSWLRQ
2EMHFWLVDPRGXOHSRUW
DFF&RQFDW3RUW
2EMHFWLVDPRGXOHSRUWFRQFDWHQDWLRQ
DFF6FDODU3RUW
2EMHFWLVDVFDODUPRGXOHSRUW
DFF%LW6HOHFW3RUW
2EMHFWLVDELWVHOHFWRIDPRGXOHSRUW
DFF3DUW6HOHFW3RUW
2EMHFWLVDSDUWVHOHFWRIDPRGXOHSRUW
DFF9HFWRU3RUW
2EMHFWLVDYHFWRUPRGXOHSRUW
DFF3RUW%LW
2EMHFWLVDELWRIDPRGXOHSRUW
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³/LVWRIDOOSUHGHÀQHGW\SHDQGIXOOW\SHFRQVWDQWVFRQWLQXHG
W\SHFRQVWDQW
IXOOW\SHFRQVWDQW
DFF3ULPLWLYH
'HVFULSWLRQ
2EMHFWLVDSULPLWLYH
DFF$QG*DWH
2EMHFWLVDQDQGSULPLWLYH
DFF%XI*DWH
2EMHFWLVDEXISULPLWLYH
DFF%XÀI*DWH
2EMHFWLVDEXÀISULPLWLYH
DFF%XÀI*DWH
2EMHFWLVDEXÀISULPLWLYH
DFF&PRV*DWH
2EMHFWLVDFPRVSULPLWLYH
DFF&RPE3ULP
2EMHFWLVDFRPELQDWLRQDOORJLF8'3
DFF1DQG*DWH
2EMHFWLVDQDQGSULPLWLYH
DFF1PRV*DWH
2EMHFWLVDQQPRVSULPLWLYH
DFF1RU*DWH
2EMHFWLVDQRUSULPLWLYH
DFF1RW*DWH
2EMHFWLVDQRWSULPLWLYH
DFF1RWLI*DWH
2EMHFWLVDQRWLISULPLWLYH
DFF1RWLI*DWH
2EMHFWLVDQRWLISULPLWLYH
DFF2U*DWH
2EMHFWLVDQRUSULPLWLYH
DFF3PRV*DWH
2EMHFWLVDSPRVSULPLWLYH
DFF3XOOGRZQ*DWH
2EMHFWLVDSXOOGRZQSULPLWLYH
DFF3XOOXS*DWH
2EMHFWLVDSXOOXSSULPLWLYH
DFF5FPRV*DWH
2EMHFWLVDQUFPRVSULPLWLYH
DFF5QPRV*DWH
2EMHFWLVDQUQPRVSULPLWLYH
DFF5SPRV*DWH
2EMHFWLVDQUSPRVSULPLWLYH
DFF5WUDQ*DWH
2EMHFWLVDQUWUDQSULPLWLYH
DFF5WUDQLI*DWH
2EMHFWLVDQUWUDQLISULPLWLYH
DFF5WUDQLI*DWH
2EMHFWLVDQUWUDQLISULPLWLYH
DFF6HT3ULP
2EMHFWLVDVHTXHQWLDOORJLF8'3
DFF7UDQ*DWH
2EMHFWLVDWUDQSULPLWLYH
DFF7UDQLI*DWH
2EMHFWLVDWUDQLISULPLWLYH
DFF7UDQLI*DWH
2EMHFWLVDWUDQLISULPLWLYH
DFF;QRU*DWH
2EMHFWLVDQ[QRUSULPLWLYH
DFF;RU*DWH
2EMHFWLVDQ[RUSULPLWLYH
DFF5HDO9DU
DFF5HDO9DU
2EMHFWLVGHFODUHGDVDUHDOGDWDW\SH
DFF5HJ
DFF5HJ
2EMHFWLVGHFODUHGDVDUHJGDWDW\SH
DFF5HJ%LW
DFF5HJ%LW
2EMHFWLVDELWVHOHFWRIDUHJGDWDW\SH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³/LVWRIDOOSUHGHÀQHGW\SHDQGIXOOW\SHFRQVWDQWVFRQWLQXHG
W\SHFRQVWDQW
IXOOW\SHFRQVWDQW
DFF6SHFSDUDP
'HVFULSWLRQ
2EMHFWLVDVSHFSDUDP
DFF,QWHJHU3DUDP
2EMHFWLVDVSHFSDUDPZLWKDQLQWHJHUYDOXH
DFF5HDO3DUDP
2EMHFWLVDVSHFSDUDPZLWKDUHDOYDOXH
DFF6WULQJ3DUDP
2EMHFWLVDVSHFSDUDPZLWKDVWULQJYDOXH
DFF6WDWHPHQW
2EMHFWLVDSURFHGXUDOVWDWHPHQW
DFF1DPHG%HJLQ6WDW
2EMHFWLVDQDPHGEHJLQVWDWHPHQW
DFF1DPHG)RUN6WDW
2EMHFWLVDQDPHGIRUNVWDWHPHQW
DFF6\VWHP7DVN
DFF6\VWHP7DVN
2EMHFWLVDEXLOWLQV\VWHPWDVN
DFF6\VWHP)XQFWLRQ
DFF6\VWHP)XQFWLRQ
2EMHFWLVDEXLOWLQV\VWHPIXQFWLRQZLWKDVFDODURU
YHFWRUUHWXUQ
DFF6\VWHP5HDO)XQFWLRQ
DFF6\VWHP5HDO)XQFWLRQ
2EMHFWLVDEXLOWLQV\VWHPIXQFWLRQZLWKDUHDO
YDOXHUHWXUQ
DFF7DVN
DFF7DVN
2EMHFWLVD9HULORJ+'/WDVN
DFF6WDWHPHQW
DFF7FKN
DFF7FKN7HUPLQDO
2EMHFWLVDWLPLQJFKHFN
DFF+ROG
2EMHFWLVDKROGWLPLQJFKHFN
DFF1RFKDQJH
2EMHFWLVDQRFKDQJHWLPLQJFKHFN
DFF3HULRG
2EMHFWLVDSHULRGWLPLQJFKHFN
DFF5HFRYHU\
2EMHFWLVDUHFRYHU\WLPLQJFKHFN
DFF6HWXS
2EMHFWLVDVHWXSWLPLQJFKHFN
DFF6HWXSKROG
2EMHFWLVDVHWXSKROGWLPLQJFKHFN
DFF6NHZ
2EMHFWLVDVNHZWLPLQJFKHFN
DFF:LGWK
2EMHFWLVDZLGWKWLPLQJFKHFN
DFF7FKN7HUPLQDO
2EMHFWLVDWLPLQJFKHFNWHUPLQDO
DFF7HUPLQDO
2EMHFWLVDSULPLWLYHWHUPLQDO
DFF,QSXW7HUPLQDO
2EMHFWLVDSULPLWLYHLQSXWWHUPLQDO
DFF2XWSXW7HUPLQDO
2EMHFWLVDSULPLWLYHRXWSXWWHUPLQDO
DFF,QRXW7HUPLQDO
2EMHFWLVDSULPLWLYHLQRXWWHUPLQDO
DFF7LPH9DU
DFF7LPH9DU
2EMHFWLVGHFODUHGDVDWLPHGDWDW\SH
DFF8VHU7DVN
DFF8VHU7DVN
2EMHFWLVDXVHUGHÀQHGV\VWHPWDVN
DFF8VHU)XQFWLRQ
DFF8VHU)XQFWLRQ
2EMHFWLVDXVHUGHÀQHGV\VWHPIXQFWLRQZLWKDVFD
ODURUYHFWRUUHWXUQ
DFF8VHU5HDO)XQFWLRQ
DFF8VHU5HDO)XQFWLRQ
2EMHFWLVDXVHUGHÀQHGV\VWHPIXQFWLRQZLWKDUHDO
YDOXHUHWXUQ
DFF:LUH3DWK
DFF,QWHUPRG3DWK
2EMHFWLVDQLQWHUPRGXOHSDWKIURPDPRGXOHRXW
SXWWRDPRGXOHLQSXW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
(UURUKDQGOLQJ
:KHQDQ$&&URXWLQHGHWHFWVDQHUURULWVKDOOSHUIRUPWKHIROORZLQJRSHUDWLRQV
D
6HWWKHJOREDOHUURUÁDJDFFBHUURUBÁDJWRQRQ]HUR
E
'LVSOD\DQHUURUPHVVDJHDWUXQWLPHWRVWDQGDUGRXWSXW
F
5HWXUQDQH[FHSWLRQYDOXH
:KHQDQ$&&URXWLQHLVFDOOHGLWDXWRPDWLFDOO\UHVHWVDFFBHUURUBÁDJWR
6XSSUHVVLQJHUURUPHVVDJHV
%\ GHIDXOW$&& URXWLQHV VKDOO GLVSOD\ HUURU PHVVDJHV (UURU PHVVDJHV FDQ EH VXSSUHVVHG XVLQJ WKH$&& URXWLQH
DFFBFRQÀJXUHWRVHWWKHFRQÀJXUDWLRQSDUDPHWHUDFF'LVSOD\(UURUVWR´IDOVHµ
(QDEOLQJZDUQLQJV
%\ GHIDXOW$&& URXWLQHV VKDOO QRW GLVSOD\ ZDUQLQJ PHVVDJHV7R HQDEOH ZDUQLQJ PHVVDJHV XVH WKH$&& URXWLQH
DFFBFRQÀJXUHWRVHWWKHFRQÀJXUDWLRQSDUDPHWHUDFF'LVSOD\:DUQLQJVWR´WUXHµ
7HVWLQJIRUHUURUV
,IDXWRPDWLFHUURUUHSRUWLQJLVVXSSUHVVHGHUURUKDQGOLQJFDQEHSHUIRUPHGE\FKHFNLQJWKHDFFBHUURUBÁDJH[SOLFLWO\
DIWHUFDOOLQJDQ$&&URXWLQH7KLVSURFHGXUHLVGHVFULEHGLQ)LJXUH
FDOO
DFFHVV
URXWLQH
LV
DFFBHUURUBIODJ
VHW"
\HV
SHUIRUP
HUURU
SURFHVVLQJ
QR
FRQWLQXH
QRUPDO
SURFHVVLQJ
)LJXUH³8VLQJDFFBHUURUBÁDJWRGHWHFWHUURUV
([DPSOH
7KHIROORZLQJH[DPSOHVKRZVD&ODQJXDJHDSSOLFDWLRQWKDWSHUIRUPVHUURUFKHFNLQJIRU$&&URXWLQHV7KLVH[DPSOH
XVHVDFFBFRQÀJXUHWRVXSSUHVVDXWRPDWLFHUURUUHSRUWLQJ,QVWHDGLWFKHFNVDFFBHUURUBÁDJH[SOLFLWO\DQGGLVSOD\V
LWVRZQVSHFLDOL]HGHUURUPHVVDJH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
LQFOXGH DFFBXVHUK
FKHFNBQHZBWLPLQJ
^
KDQGOH
JDWHBKDQGOH
LQLWLDOL]HDQGFRQILJXUHDFFHVVURXWLQHV
DFFBLQLWLDOL]H
VXSSUHVVHUURUUHSRUWLQJE\DFFHVVURXWLQHV
DFFBFRQILJXUHDFF'LVSOD\(UURUVIDOVH
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
FKHFNW\SHRIILUVWDUJXPHQWWKHREMHFW
JDWHBKDQGOH DFFBKDQGOHBWIDUJ
`
FKHFNIRUYDOLGDUJXPHQW
LIDFFBHUURUBIODJ
WIBHUURU&DQQRWGHULYHKDQGOHIURPDUJXPHQW?Q
HOVH
DUJXPHQWLVYDOLG
PDNHVXUHLWLVDSULPLWLYH
LIDFFBIHWFKBW\SHJDWHBKDQGOH DFF3ULPLWLYH
WIBHUURU,QYDOLGDUJXPHQWW\SHQRWDSULPLWLYH?Q
DFFBFORVH
([FHSWLRQYDOXHV
$&& URXWLQHV VKDOO UHWXUQ RQH RI WKUHH H[FHSWLRQ YDOXHV ZKHQ DQ HUURU RFFXUV XQOHVV VSHFLÀHG GLIIHUHQWO\ LQ WKH
V\QWD[RIDVSHFLÀF$&&URXWLQH
7DEOH³([FHSWLRQYDOXHVUHWXUQHGE\$&&URXWLQHVRQHUURUV
:KHQURXWLQHUHWXUQV
7KHH[FHSWLRQYDOXHVKDOOEH
LQWRUGRXEOHYDOXHV
SRLQWHUVRUKDQGOHV
QXOO
ERROERROHDQYDOXHV
IDOVH
%HFDXVH$&&URXWLQHVFDQUHWXUQYDOLGYDOXHVWKDWDUHWKHVDPHDVH[FHSWLRQYDOXHVWKHRQO\GHÀQLWLYHZD\WRGHWHFW
HUURUVH[SOLFLWO\LVWRFKHFNDFFBHUURUBÁDJ
1RWHWKDWQXOODQGIDOVHDUHSUHGHÀQHGFRQVWDQWVGHFODUHGLQDFFBXVHUK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
5HDGLQJDQGZULWLQJGHOD\YDOXHV
7KLVFODXVHH[SODLQVKRZ$&&URXWLQHVWKDWUHDGDQGPRGLI\GHOD\VDUHXVHG7KH$&&URXWLQHVDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\V DQG DFFBDSSHQGBGHOD\V FDQ UHDG RU PRGLI\ GHOD\ YDOXHV LQ D 9HULORJ VRIWZDUH
LPSOHPHQWDWLRQGDWDVWUXFWXUH5HIHUWR6HFWLRQIRUWKHFRPSOHWHV\QWD[RIHDFKRIWKHVHURXWLQHV
1XPEHURIGHOD\VIRU9HULORJ+'/REMHFWV
7KHUHDUHDYDULHW\RIREMHFWVLQD9HULORJ+'/VRXUFHGHVFULSWLRQWKDWFDQPRGHOGHOD\V7KHVHREMHFWVFDQKDYHD
VLQJOHGHOD\WKDWUHSUHVHQWVDOOSRVVLEOHORJLFWUDQVLWLRQVRUPXOWLSOHGHOD\VWKDWUHSUHVHQWGLIIHUHQWORJLFWUDQVLWLRQV
7DEOHOLVWVWKHREMHFWVWKDWFDQKDYHGHOD\VDQGWKHQXPEHURIGLIIHUHQWGHOD\VIRUHDFKREMHFW
7DEOH³1XPEHURISRVVLEOHGHOD\VIRU9HULORJ+'/REMHFWV
9HULORJ+'/2EMHFWV
VWDWHSULPLWLYHV
VWDWHSULPLWLYHV
0RGXOHSDWKGHOD\V
1XPEHURI
GHOD\V
'HVFULSWLRQ
2QHGHOD\IRU
DOOWUDQVLWLRQV
6HSDUDWHGHOD\VIRU
ULVHIDOO
2QHGHOD\IRU
DOOWUDQVLWLRQV
6HSDUDWHGHOD\VIRU
ULVHIDOO
6HSDUDWHGHOD\VIRU
ULVHIDOOWR=
2QHGHOD\IRU
DOOWUDQVLWLRQV
6HSDUDWHGHOD\VIRU
ULVHIDOO
6HSDUDWHGHOD\VIRU
ULVHIDOOWR=
6HSDUDWHGHOD\VIRU
!!!==!!==!
6HSDUDWHGHOD\VIRU
!!!==!!==!
!;;!!;;!;!==!;
0RGXOHSRUWV
0RGXOHSRUWELWV
,QWHUPRGXOHSDWKV
6HSDUDWHGHOD\VIRU
ULVHIDOOWR=
7LPLQJFKHFNV
2QHGHOD\IRU
WLPLQJOLPLW
127(³7KHURXWLQHDFFBDSSHQGBGHOD\VGRHVQRWVXSSRUWLQWHUPRGXOHSDWKGHOD\V
,Q DGGLWLRQ WR WKH QXPEHU RI GHOD\V HDFK GHOD\ FDQ EH UHSUHVHQWHG DV D VLQJOH GHOD\ IRU HDFK WUDQVLWLRQ RU DV D
PLQLPXPW\SLFDOPD[LPXPGHOD\VHWIRUHDFKWUDQVLWLRQ7KXVDPRGXOHSDWKZLWKGHOD\PLJKWKDYHRQHYDOXHRU
WKUHHYDOXHVDQGDPRGXOHSDWKZLWKGHOD\VFDQKDYHGHOD\YDOXHVRUGHOD\YDOXHV
$&&URXWLQHFRQÀJXUDWLRQ
7KH3/,VKDOOXVHFRQÀJXUDWLRQSDUDPHWHUVWRVHWXSWKHGHOD\$&&URXWLQHVWRZRUNZLWKWKHYDULDWLRQVRI9HULORJ
REMHFWV DQG WKH QXPEHU RI SRVVLEOH GHOD\V 7KHVH SDUDPHWHUV VKDOO EH VHW XVLQJ WKH URXWLQH DFFBFRQÀJXUH 7KH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
SDUDPHWHUV WKDW FRQÀJXUH WKH GHOD\ $&& URXWLQHV DUH VXPPDUL]HG LQ 7DEOH +RZ WKHVH FRQÀJXUDWLRQ
SDUDPHWHUVDUHXVHGLVSUHVHQWHGLQ5HIHUWRIRUGHWDLOVRQXVLQJDFFBFRQÀJXUH
7DEOH³&RQÀJXUDWLRQSDUDPHWHUVIRUGHOD\$&&URXWLQHV
&RQÀJXUDWLRQSDUDPHWHU
'HVFULSWLRQ
:KHQ´IDOVHµHDFKGHOD\VKDOOEHUHSUHVHQWHGE\RQHYDOXH
:KHQ´WUXHµHDFKGHOD\VKDOOEHUHSUHVHQWHGE\DPLQW\SPD[YDOXH
7KHGHIDXOWVKDOOEH´IDOVHµ
DFF0LQ7\S0D['HOD\V
DFF7R+L='HOD\
6HWWR´DYHUDJHµ´PD[µ´PLQµRU´IURPXVHUµZKLFKDOORZVWKH
GHOD\PRGLI\$&&URXWLQHVWRFDOFXODWHWKHWR=GHOD\IRUVWDWHREMHFWVZKHQ
DFF3DWK'HOD\&RXQWLVVHWWR´µ7KHGHIDXOWVKDOOEH´IURPXVHUµ
ZKLFKPHDQVWKHWR=GHOD\VKDOOQRWEHFDOFXODWHG1RWHWKDWWKLVSDUDPHWHU
VKDOOEHLJQRUHGZKHQDFF0LQ7\S0D['HOD\VLVVHWWR´WUXHµ
DFF3DWK'HOD\&RXQW
6HWVWKHQXPEHURIGHOD\DUJXPHQWVWREHXVHGE\WKH$&&URXWLQHVIRUPRG
XOHSDWKGHOD\V6KDOOEHVHWWR´µ´µ´µ´µRU´µ7KHGHIDXOW
VKDOOEH´µ
'HWHUPLQLQJWKHQXPEHURIDUJXPHQWVIRU$&&GHOD\URXWLQHV
7KH$&& URXWLQHV DFFBIHWFKBGHOD\V DFFBUHSODFHBGHOD\V DQG DFFBDSSHQGBGHOD\V VKDOO UHTXLUH D GLIIHUHQW
QXPEHURIDUJXPHQWVEDVHGRQ
³ 7KHW\SHRIREMHFWKDQGOH
³ 7KHVHWWLQJRIFRQÀJXUDWLRQSDUDPHWHUV
7KHIROORZLQJVXEFODXVHVGLVFXVVKRZWKHVHIDFWRUVDIIHFWWKHQXPEHURIDUJXPHQWVIRUGHOD\$&&URXWLQHV
6LQJOHGHOD\YDOXHPRGH
:KHQWKHFRQÀJXUDWLRQSDUDPHWHUDFF0LQ7\S0D['HOD\VLV´IDOVHµWKHGHIDXOWDVLQJOHYDOXHVKDOOEHXVHGIRU
HDFK GHOD\ WUDQVLWLRQ ,Q WKLV PRGH WKH URXWLQHV DFFBIHWFKBGHOD\V DFFBUHSODFHBGHOD\V DQG
DFFBDSSHQGBGHOD\V VKDOO UHTXLUH HDFK GHOD\ YDOXH DV D VHSDUDWH DUJXPHQW )RU DFFBUHSODFHBGHOD\V DQG
DFFBDSSHQGBGHOD\V WKH DUJXPHQWV VKDOO EH D OLWHUDO YDOXH RI W\SH GRXEOH RU YDULDEOHV RI W\SH GRXEOH )RU
DFFBIHWFKBGHOD\VWKHDUJXPHQWVVKDOOEHSRLQWHUVWRYDULDEOHVRIW\SHGRXEOH
7KHQXPEHURIDUJXPHQWVUHTXLUHGLVGHWHUPLQHGE\WKHW\SHRIREMHFWKDQGOHSDVVHGWRWKHGHOD\$&&URXWLQHDV
VKRZQLQ7DEOH
7DEOH³1XPEHURIGHOD\DUJXPHQWVLQVLQJOHGHOD\PRGH
2EMHFWKDQGOHW\SH
&RQÀJXUDWLRQSDUDPHWHUV
1XPEHUDQGRUGHURIGHOD\DUJXPHQWV
7LPLQJFKHFN
DUJXPHQW
WLPLQJFKHFNOLPLW
VWDWHSULPLWLYH
DUJXPHQWV
ULVHIDOOWUDQVLWLRQV
VWDWHSULPLWLYH
0RGXOHSRUW
0RGXOHSRUWELW
,QWHUPRGXOHSDWK
6HFWLRQ
DFF7R+L='HOD\VHWWR
´PLQµ´PD[µRU´DYHUDJHµ
DFF7R+L='HOD\VHWWR´IURPBXVHUµ
DUJXPHQWV ULVHIDOOWUDQVLWLRQV
WR=GHOD\LVFDOFXODWHGVHH
DUJXPHQWV
ULVHIDOOWR=WUDQVLWLRQV
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³1XPEHURIGHOD\DUJXPHQWVLQVLQJOHGHOD\PRGHFRQWLQXHG
2EMHFWKDQGOHW\SH
0RGXOHSDWK
&RQÀJXUDWLRQSDUDPHWHUV
1XPEHUDQGRUGHURIGHOD\DUJXPHQWV
DFF3DWK'HOD\&RXQWVHWWR´µ
DUJXPHQW
DOOWUDQVLWLRQV
DFF3DWK'HOD\&RXQWVHWWR´µ
DUJXPHQWV
ULVHIDOOWUDQVLWLRQV
DFF3DWK'HOD\&RXQWVHWWR´µ
DUJXPHQWV
ULVHIDOOWR=WUDQVLWLRQV
DFF3DWK'HOD\&RXQWVHWWR´µ
DUJXPHQWV
!!!==!!==!
DFF3DWK'HOD\&RXQWVHWWR´µ
DUJXPHQWV
!!!==!!==!
!;;!!;;!;!==!;
0LQW\SPD[GHOD\YDOXHPRGH
:KHQWKHFRQÀJXUDWLRQSDUDPHWHUDFF0,Q7\S0D['HOD\VLV´WUXHµDWKUHHYDOXHVHWVKDOOEHXVHGIRUHDFKGHOD\
WUDQVLWLRQ ,Q WKLV PRGH WKH URXWLQHV DFFBIHWFKBGHOD\V DFFBUHSODFHBGHOD\V DQG DFFBDSSHQGBGHOD\V VKDOO
UHTXLUHWKHGHOD\DUJXPHQWWREHDSRLQWHURIDQDUUD\RIYDULDEOHVRIW\SHGRXEOH7KHQXPEHURIHOHPHQWVLQWKHDUUD\
VKDOOEHGHWHUPLQHGE\WKHW\SHRIREMHFWKDQGOHSDVVHGWRWKHGHOD\$&&URXWLQHDVVKRZQLQ7DEOH
7DEOH³1XPEHURIGHOD\HOHPHQWVLQPLQW\SPD[GHOD\PRGH
2EMHFWKDQGOHW\SH
7LPLQJFKHFN
VWDWHSULPLWLYH
VWDWHSULPLWLYH
0RGXOHSRUW
0RGXOHSRUWELW
,QWHUPRGXOHSDWK
&RQÀJXUDWLRQSDUDPHWHUV
6L]HDQGRUGHURIWKHGHOD\DUUD\
HOHPHQWV
DUUD\>@ PLQOLPLW
DUUD\>@ W\SOLPLW
DUUD\>@ PD[OLPLW
HOHPHQWV
DUUD\>@ PLQULVHGHOD\
DUUD\>@ W\SULVHGHOD\
DUUD\>@ PD[ULVHGHOD\
DUUD\>@ PLQIDOOGHOD\
DUUD\>@ W\SIDOOGHOD\
DUUD\>@ PD[IDOOGHOD\
DUUD\>@ PLQWR=GHOD\
DUUD\>@ W\SWR=GHOD\
DUUD\>@ PD[WR=GHOD\
DQDUUD\RIVL]HVKDOOEHGHFODUHGHYHQLIWR=
GHOD\VDUHQRWXVHGE\WKHREMHFW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³1XPEHURIGHOD\HOHPHQWVLQPLQW\SPD[GHOD\PRGHFRQWLQXHG
2EMHFWKDQGOHW\SH
&RQÀJXUDWLRQSDUDPHWHUV
DFF3DWK'HOD\&RXQWVHWWR´µ
HOHPHQWV
DUUD\>@ PLQGHOD\
DUUD\>@ W\SGHOD\
DUUD\>@ PD[GHOD\
DFF3DWK'HOD\&RXQWVHWWR´µ
HOHPHQWV
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
PLQULVHGHOD\
W\SULVHGHOD\
PD[ULVHGHOD\
PLQIDOOGHOD\
W\SIDOOGHOD\
PD[IDOOGHOD\
DFF3DWK'HOD\&RXQWLVVHWWR´µ
HOHPHQWV
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
PLQULVHGHOD\
W\SULVHGHOD\
PD[ULVHGHOD\
PLQIDOOGHOD\
W\SIDOOGHOD\
PD[IDOOGHOD\
PLQWR=GHOD\
W\SWR=GHOD\
PD[WR=GHOD\
DFF3DWK'HOD\&RXQWVHWWR´µ
HOHPHQWV
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
0RGXOHSDWK
6HFWLRQ
6L]HDQGRUGHURIWKHGHOD\DUUD\
PLQ!GHOD\
W\S!GHOD\
PD[!GHOD\
PLQ!GHOD\
W\S!GHOD\
PD[!GHOD\
PLQ!=GHOD\
W\S!=GHOD\
PD[!=GHOD\
PLQ=!GHOD\
W\S=!GHOD\
PD[=!GHOD\
PLQ!=GHOD\
W\S!=GHOD\
PD[!=GHOD\
PLQ=!GHOD\
W\S=!GHOD\
PD[=!GHOD\
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³1XPEHURIGHOD\HOHPHQWVLQPLQW\SPD[GHOD\PRGHFRQWLQXHG
2EMHFWKDQGOHW\SH
0RGXOHSDWK
FRQWLQXHG
&RQÀJXUDWLRQSDUDPHWHUV
DFF3DWK'HOD\&RXQWVHWWR´µ
6L]HDQGRUGHURIWKHGHOD\DUUD\
HOHPHQWV
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
DUUD\>@
PLQ!GHOD\
W\S!GHOD\
PD[!GHOD\
PLQ!GHOD\
W\S!GHOD\
PD[!GHOD\
PLQ!=GHOD\
W\S!=GHOD\
PD[!=GHOD\
PLQ=!GHOD\
W\S=!GHOD\
PD[=!GHOD\
PLQ!=GHOD\
W\S!=GHOD\
PD[!=GHOD\
PLQ=!GHOD\
W\S=!GHOD\
PD[=!GHOD\
PLQ!;GHOD\
W\S!;GHOD\
PD[!;GHOD\
PLQ;!GHOD\
W\S;!GHOD\
PD[;!GHOD\
PLQ!;GHOD\
W\S!;GHOD\
PD[!;GHOD\
PLQ;!GHOD\
W\S;!GHOD\
PD[;!GHOD\
PLQ;!=GHOD\
W\S;!=GHOD\
PD[;!=GHOD\
PLQ=!;GHOD\
W\S=!;GHOD\
PD[=!;GHOD\
&DOFXODWLQJWXUQRIIGHOD\VIURPULVHDQGIDOOGHOD\V
,Q VLQJOH GHOD\ PRGH DFF0LQ7\S0D['HOD\V VHW WR ´IDOVHµ WKH URXWLQHV DFFBUHSODFHBGHOD\V DQG
DFFBDSSHQGBGHOD\VFDQEHLQVWUXFWHGWRFDOFXODWHDXWRPDWLFDOO\WKHWXUQRIIGHOD\VIURPULVHDQGIDOOGHOD\V+RZ
WKHFDOFXODWLRQVKDOOEHSHUIRUPHGLVFRQWUROOHGE\WKHFRQÀJXUDWLRQSDUDPHWHUDFF7R+L='HOD\DVVKRZQLQ7DEOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³&RQÀJXULQJDFF7R+L='HOD\WRGHWHUPLQHWKHWR=GHOD\
&RQÀJXUDWLRQRIDFF7R+L='HOD\
9DOXHRIWKHWR=GHOD\
´DYHUDJHµ
7KHWR=WXUQRIIGHOD\VKDOOEHWKHDYHUDJHRIWKH
ULVHDQGIDOOGHOD\V
´PLQµ
7KHWR=WXUQRIIGHOD\VKDOOEHWKHVPDOOHURIWKH
ULVHDQGIDOOGHOD\V
´PD[µ
7KHWR=WXUQRIIGHOD\VKDOOEHWKHODUJHURIWKHULVH
DQGIDOOGHOD\V
´IURPBXVHUµ
WKHGHIDXOW
7KHWR=WXUQRIIGHOD\VKDOOEHVHWWRWKHYDOXH
SDVVHGDVDXVHUVXSSOLHGDUJXPHQW
6WULQJKDQGOLQJ
$&&URXWLQHVVKDUHDQLQWHUQDOVWULQJEXIIHU
$&&URXWLQHVWKDWUHWXUQSRLQWHUVWRVWULQJVFDQVKDUHDQLQWHUQDOEXIIHUWRVWRUHVWULQJYDOXHV7KHVHURXWLQHVVKDOO
UHWXUQDSRLQWHUWRWKHORFDWLRQLQWKHEXIIHUWKDWFRQWDLQVWKHÀUVWFKDUDFWHURIWKHVWULQJDVLOOXVWUDWHGLQ)LJXUH
,QWKLVH[DPSOHPRGBQDPHSRLQWVWRWKHORFDWLRQLQWKHEXIIHUZKHUHWRSPWKHQDPHRIWKHPRGXOHDVVRFLDWHG
ZLWKPRGXOHBKDQGOHLVVWRUHG
PRGBQDPH DFFBIHWFKBQDPHPRGXOHBKDQGOH
7+(,17(51$/675,1*%8))(5
·G·
·I·
·I·
·?·
·W·
·R·
·S·
··
·P·
··
·?·
HQGRIDSUHYLRXVVWULQJ
)LJXUH³+RZ$&&URXWLQHVVWRUHVWULQJVLQWKHLQWHUQDOEXIIHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6WULQJEXIIHUUHVHW
$&&URXWLQHVVKDOOSODFHVWULQJVDWWKHQH[WDYDLODEOHVHTXHQWLDOORFDWLRQLQWKHVWULQJEXIIHUZKLFKVWRUHVDWOHDVW
FKDUDFWHUV,IWKHUHLVQRWHQRXJKURRPWRVWRUHDQHQWLUHVWULQJVWDUWLQJDWWKHQH[WORFDWLRQDFRQGLWLRQNQRZQDV
EXIIHUUHVHWVKDOORFFXU
:KHQEXIIHUUHVHWRFFXUV$&&URXWLQHVVKDOOSODFHWKHQH[WVWULQJVWDUWLQJDWWKHEHJLQQLQJRIWKHEXIIHURYHUZULWLQJ
GDWDDOUHDG\VWRUHGWKHUH7KHUHVXOWFDQEHDORVVRIGDWDDVLOOXVWUDWHGLQ)LJXUH
$FWLRQ
5HVXOWV
PRGBQDPH DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
7+(,17(51$/675,1*%8))(5
·G·
·I·
·I·
·?·
·W·
·R·
·S·
··
·P·
··
·?·
PRGBQDPH
QHWBQDPH DFFBIHWFKBIXOOQDPHQHWBKDQGOH
7+(,17(51$/675,1*%8))(5
QHWBQDPH
PRGBQDPH
·W·
·R·
·S·
··
·P·
··
··
·Z·
··
·?·
·?·
PRGBQDPHSRLQWVWRWKHVWULQJ
´WRSPµ
7KHVWULQJKDSSHQVWREHVWRUHG
QHDUWKHHQGRIWKHEXIIHU
DFFBIHWFKBIXOOQDPHFDQQRW
SODFHWKHQH[WVWULQJDWWKHHQG
RIWKHEXIIHU7KHUHIRUHD
EXIIHUUHVHWRFFXUV
QHWBQDPHSRLQWVWRWKHVWULQJ
´WRSPZµ
7KHGDWDDWWKHEHJLQQLQJRIWKH
EXIIHULVRYHUZULWWHQ7KHROG
PRGBQDPHSRLQWHUQRZSRLQWV
WRFRUUXSWHGGDWDZKLFKLQWKLV
H[DPSOHLV´PZµ
)LJXUH³%XIIHUUHVHWFDXVHVGDWDLQWKHVWULQJEXIIHUWREHRYHUZULWWHQ
7KHEXIIHUUHVHWZDUQLQJ
$&& URXWLQHV VKDOO LVVXH D ZDUQLQJ ZKHQHYHU WKH LQWHUQDO VWULQJ EXIIHU UHVHWV 7R YLHZ WKH ZDUQLQJ PHVVDJH WKH
FRQÀJXUDWLRQSDUDPHWHUDFF'LVSOD\:DUQLQJVVKDOOEHVHWWRWUXHXVLQJWKH$&&URXWLQHDFFBFRQÀJXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
3UHVHUYLQJVWULQJYDOXHV
$SSOLFDWLRQV WKDW XVH VWULQJV LPPHGLDWHO\³IRU H[DPSOH WR SULQW QDPHV RI REMHFWV³GR QRW QHHG WR EH FRQFHUQHG
DERXWRYHUZULWHVDIWHUDVWULQJEXIIHUUHVHW$SSOLFDWLRQVWKDWKDYHWRSUHVHUYHVWULQJYDOXHVZKLOHFDOOLQJRWKHU$&&
URXWLQHVWKDWZULWHWRWKHVWULQJEXIIHUVKRXOGSUHVHUYHWKHVWULQJYDOXHEHIRUHLWLVRYHUZULWWHQ7RSUHVHUYHDVWULQJ
YDOXHWKH&URXWLQHVWUFS\FDQEHXVHGWRFRS\WKHVWULQJWRDORFDOFKDUDFWHUDUUD\
([DPSOHRISUHVHUYLQJVWULQJYDOXHV
7KHIROORZLQJH[DPSOHFRGHLOOXVWUDWHVSUHVHUYLQJVWULQJYDOXHV,IWKHPRGXOHLQWKLVH[DPSOHFRQWDLQVPDQ\FHOOV
RQH RI WKH FDOOV WRDFFBIHWFKBQDPH FRXOG HYHQWXDOO\ RYHUZULWH WKH PRGXOH QDPH LQ WKH VWULQJ EXIIHU ZLWK D FHOO
QDPH7RSUHVHUYHWKHPRGXOHQDPHVWUFS\LVXVHGWRVWRUHLWORFDOO\LQDQDUUD\FDOOHGPRGBQDPH
LQFOXGHDFFBXVHUK
GHILQH
1$0(B6,=(
YRLG GLVSOD\BFHOOVBLQBPRGXOHPRG
KDQGOH
PRG
^
KDQGOH
FHOO
FKDU
PRGBQDPH>1$0(B6,=(@
VDYHWKHPRGXOHQDPHLQORFDOEXIIHUPRGBQDPH
VWUFS\PRGBQDPHDFFBIHWFKBIXOOQDPHPRG
VWUFS\VDYHVWKHIXOOPRGXOH
QDPHLQDUUD\PRGBQDPH
WKH$&&URXWLQHFDOO
`
LVSDVVHGDVWKHVHFRQG
FHOO QXOO
DUJXPHQWWRVWUFS\
ZKLOHFHOO DFFBQH[WBFHOOPRGFHOO
LRBSULQWIVV?QPRGBQDPHDFFBIHWFKBQDPHFHOO
8VLQJ9&/$&&URXWLQHV
7KH9&/URXWLQHVDGGRUGHOHWHYDOXHFKDQJHPRQLWRUVRQDVSHFLÀHGREMHFW7KHQZKHQHYHUWKHREMHFWFKDQJHVORJLF
YDOXHRUVWUHQJWKD3/,FRQVXPHUURXWLQHVKDOOEHFDOOHG
7KH$&&URXWLQHDFFBYFOBDGGDGGVDYDOXHFKDQJHPRQLWRURQDQREMHFWLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
7KHDUJXPHQWVIRUDFFBYFOBDGGVSHFLI\
³
³
³
³
$KDQGOHWRDQREMHFWLQWKH9HULORJ+'/VWUXFWXUH
7KHQDPHRIDFRQVXPHUURXWLQH
$XVHUBGDWDYDOXH
$9&/UHDVRQBÁDJ
7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHXVDJHRIDFFBYFOBDGG
DFFBYFOBDGGQHWQHWPRQBFRQVXPHUQHWBQDPHYFOBYHULORJBORJLF
7KHSXUSRVHRIHDFKRIWKHVHDUJXPHQWVLVGHVFULEHGLQWKHIROORZLQJSDUDJUDSKV5HIHUWRIRUWKHIXOOV\QWD[
DQGXVDJHRIDFFBYFOBDGGDQGLWVDUJXPHQWV
7KHKDQGOHDUJXPHQWVKDOOEHDKDQGOHWRDQ\REMHFWW\SHLQWKHOLVWLQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHFRQVXPHUURXWLQHDUJXPHQWVKDOOEHWKHQDPHRID&DSSOLFDWLRQWKDWVKDOOEHFDOOHGIRUWKHUHDVRQVVSHFLÀHGE\
WKHUHDVRQBÁDJVXFKDVDORJLFYDOXHFKDQJH:KHQDFRQVXPHUURXWLQHLVFDOOHGLWVKDOOEHSDVVHGDSRLQWHUWRD&
UHFRUGFDOOHGYFBUHFRUG7KLVUHFRUGVKDOOFRQWDLQLQIRUPDWLRQDERXWWKHREMHFWLQFOXGLQJWKHVLPXODWLRQWLPHRI
WKHFKDQJHDQGWKHQHZORJLFYDOXHRIWKHREMHFW7KHYFBUHFRUGLVGHÀQHGLQWKHÀOHDFFBXVHUKDQGLVOLVWHG
LQ)LJXUH
7KH XVHUBGDWD DUJXPHQW VKDOO EH D FKDUDFWHU SRLQWHU 7KH YDOXH RI WKH XVHUBGDWD DUJXPHQW VKDOO EH SDVVHG WR WKH
FRQVXPHU URXWLQH DV SDUW RI WKH YFBUHFRUG 7KH XVHUBGDWD DUJXPHQW FDQ EH XVHG WR SDVV D VLQJOH YDOXH WR WKH
FRQVXPHUURXWLQHRULWFDQEHXVHGWRSDVVDSRLQWHUWRLQIRUPDWLRQ)RUH[DPSOHWKHQDPHRIWKHREMHFWFRXOGEH
VWRUHGLQDJOREDOFKDUDFWHUVWULQJDUUD\DQGDSRLQWHUWRWKDWDUUD\FRXOGEHSDVVHGDVWKHXVHUBGDWDDUJXPHQW7KH
FRQVXPHU URXWLQH FRXOG WKHQ KDYH DFFHVV WR WKH REMHFW QDPH$QRWKHU H[DPSOH LV WR FUHDWH D JOREDO XVHUGHÀQHG
VWUXFWXUHZLWKVHYHUDOYDOXHVWKDWQHHGWREHSDVVHGWRWKHFRQVXPHUURXWLQH$SRLQWHUWRDYDULDEOHXVLQJWKHXVHU
GHÀQHGVWUXFWXUHLVWKHQSDVVHGDVWKHXVHUBGDWDDUJXPHQW1RWHWKDWWKHXVHUBGDWDDUJXPHQWLVGHÀQHGDVDFKDUDFWHU
SRLQWHUWKHUHIRUHDQ\RWKHUGDWDW\SHVKRXOGEHFDVWWRDFKDUDFWHUSRLQWHU
7KH9&/UHDVRQBÁDJDUJXPHQWLVRQHRIWZRSUHGHÀQHGFRQVWDQWVWKDWVHWVXSWKH9&/FDOOEDFNPHFKDQLVPWRFDOO
WKH FRQVXPHU URXWLQH XQGHU VSHFLÀF FLUFXPVWDQFHV 7KH FRQVWDQW YFOBYHULORJBORJLF VHWV XS WKH 9&/ WR FDOO WKH
FRQVXPHUURXWLQHZKHQHYHUWKHPRQLWRUHGREMHFWFKDQJHVORJLFYDOXH7KHFRQVWDQWYFOBYHULORJBVWUHQJWKVHWVXSWKH
9&/WRFDOOWKHFRQVXPHUURXWLQHZKHQWKHPRQLWRUHGREMHFWFKDQJHVORJLFYDOXHRUORJLFVWUHQJWK
$QREMHFWFDQKDYHDQ\QXPEHURI9&/PRQLWRUVDVVRFLDWHGZLWKLWDVORQJDVHDFKPRQLWRULVXQLTXHLQVRPHZD\
9&/PRQLWRUVFDQEHGHOHWHGXVLQJWKH$&&URXWLQHDFFBYFOBGHOHWH
9&/REMHFWV
7KH9&/VKDOOPRQLWRUYDOXHFKDQJHVIRUWKHIROORZLQJREMHFWV
³
³
³
³
³
³
6FDODUYHFWRUDQGELWVHOHFWVRIUHJLVWHUV
6FDODUYHFWRUDQGELWVHOHFWVRIQHWV
,QWHJHUUHDODQGWLPHYDULDEOHV
0RGXOHSRUWV
3ULPLWLYHRXWSXWRULQRXWWHUPLQDOV
(YHQWV
7KH9&/UHFRUGGHÀQLWLRQ
(DFKWLPHDFRQVXPHUURXWLQHLVFDOOHGLWVKDOOEHSDVVHGDSRLQWHUWRDUHFRUGVWUXFWXUHFDOOHGYFBUHFRUG7KLV
VWUXFWXUH VKDOO FRQWDLQ LQIRUPDWLRQ DERXW WKH PRVW UHFHQW FKDQJH WKDW RFFXUUHG RQ WKH PRQLWRUHG REMHFW 7KH
YFBUHFRUGVWUXFWXUHLVGHÀQHGLQDFFBXVHUKDQGLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBYFBUHFRUG
^
LQWYFBUHDVRQ
LQWYFBKLJKWLPH
LQWYFBORZWLPH
FKDUXVHUBGDWD
XQLRQ^
XQVLJQHGFKDUORJLFBYDOXH
GRXEOHUHDOBYDOXH
KDQGOHYHFWRUBKDQGOH
VBVWUHQJWKVVWUHQJWKVBV
`RXWBYDOXH
`VBYFBUHFRUGSBYFBUHFRUG
)LJXUH³7KH9&/VBYFBUHFRUGVWUXFWXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KH YFBUHDVRQ ÀHOG RI YFBUHFRUG VKDOO FRQWDLQ D SUHGHÀQHG LQWHJHU FRQVWDQW WKDW VKDOO GHVFULEH ZKDW W\SH RI
FKDQJHRFFXUUHG7KHFRQVWDQWVWKDWFDQEHSDVVHGLQWKHYFBUHDVRQÀHOGDUHGHVFULEHGLQ7DEOH
7DEOH³3UHGHÀQHGYFBUHDVRQFRQVWDQWV
3UHGHÀQHGYFBUHDVRQFRQVWDQW
ORJLFBYDOXHBFKDQJH
VWUHQJWKBYDOXHBFKDQJH
YHFWRUBYDOXHBFKDQJH
'HVFULSWLRQ
$VFDODUQHWRUELWVHOHFWRIDYHFWRUQHWFKDQJHGORJLFYDOXH
$VFDODUQHWRUELWVHOHFWRIDYHFWRUQHWFKDQJHGORJLFYDOXHRUVWUHQJWK
$YHFWRUQHWRUSDUWVHOHFWRIDYHFWRUQHWFKDQJHGORJLFYDOXH
VUHJLVWHUBYDOXHBFKDQJH
$VFDODUUHJLVWHUFKDQJHGORJLFYDOXH
YUHJLVWHUBYDOXHBFKDQJH
$YHFWRUUHJLVWHURUSDUWVHOHFWRIDYHFWRUUHJLVWHUFKDQJHGORJLFYDOXH
LQWHJHUBYDOXHBFKDQJH
$QLQWHJHUYDULDEOHFKDQJHGYDOXH
UHDOBYDOXHBFKDQJH
$UHDOYDULDEOHFKDQJHGYDOXH
WLPHBYDOXHBFKDQJH
$WLPHYDULDEOHFKDQJHGYDOXH
HYHQWBYDOXHBFKDQJH
$QHYHQWYDULDEOHFKDQJHG
7KHYFBKLJKWLPHDQGYFBORZWLPHÀHOGVRIYFBUHFRUGVKDOOEHELWLQWHJHUVWKDWVKDOOFRQWDLQWKHVLPXODWLRQWLPH
WKHFKDQJHRFFXUUHGDVIROORZV
PVE
YFBKLJKWLPH
YFBORZWLPH
OVE
7KH XVHUBGDWD ÀHOG RI YFBUHFRUG VKDOO EH D FKDUDFWHU SRLQWHU DQG LW VKDOO FRQWDLQ WKH YDOXH VSHFLÀHG DV WKH
XVHUBGDWDDUJXPHQWLQWKHDFFBYFOBDGG$&&URXWLQH
7KHRXWBYDOXHÀHOGRIYFBUHFRUGVKDOOEHDXQLRQRIVHYHUDOGDWDW\SHV2QO\RQHGDWDW\SHVKDOOEHSDVVHGLQWKH
VWUXFWXUHEDVHGRQWKHUHDVRQWKHFDOOEDFNRFFXUUHGDVVKRZQ7DEOH
7DEOH³3UHGHÀQHGRXWBYDOXHFRQVWDQWV
,IYFBUHDVRQLV
7KHRXWBYDOXHVKDOO
EHDW\SHRI
ORJLFBYDOXHBFKDQJH
XQVLJQHGFKDU
$SUHGHÀQHGFRQVWDQWIURPWKHIROORZLQJYFOYFO
YFO;YFO[YFO=YFO]
VWUHQJWKBYDOXHBFKDQJH
VBVWUHQJWKV
VWUXFWXUHSRLQWHU
$VWUXFWXUHZLWKORJLFDQGVWUHQJWKDVVKRZQLQ)LJXUH
YHFWRUBYDOXHBFKDQJH
KDQGOH
VUHJLVWHUBYDOXHBFKDQJH
XQVLJQHGFKDU
$SUHGHÀQHGFRQVWDQWIURPWKHIROORZLQJYFOYFO
YFO;YFO[YFO=YFO]
YUHJLVWHUBYDOXHBFKDQJH
KDQGOH
$KDQGOHWRDYHFWRUUHJLVWHURUSDUWVHOHFWRIDYHFWRU
UHJLVWHU
6HFWLRQ
'HVFULSWLRQ
$KDQGOHWRDYHFWRUQHWRUSDUWVHOHFWRIDYHFWRUQHW
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³3UHGHÀQHGRXWBYDOXHFRQVWDQWVFRQWLQXHG
,IYFBUHDVRQLV
7KHRXWBYDOXHVKDOO
EHDW\SHRI
'HVFULSWLRQ
LQWHJHUBYDOXHBFKDQJH
KDQGOH
$KDQGOHWRDQLQWHJHUYDULDEOH
UHDOBYDOXHBFKDQJH
GRXEOH
7KHYDOXHRIDUHDOYDULDEOH
WLPHBYDOXHBFKDQJH
KDQGOH
$KDQGOHWRDWLPHYDULDEOH
HYHQWBYDOXHBFKDQJH
QRQH
(YHQWW\SHVKDYHQRYDOXH
:KHQ WKH YFBUHDVRQ ÀHOG RI WKH YFBUHFRUG LV VWUHQJWKBYDOXHBFKDQJH D SRLQWHU WR DQ VBVWUHQJWKV
VWUXFWXUHVKDOOEHSDVVHGLQWKHRXWBYDOXHÀHOGRIYFBUHFRUG7KLVVWUXFWXUHVKDOOFRQWDLQWKUHHÀHOGVDVVKRZQ
LQ)LJXUH
W\SHGHIVWUXFWWBVWUHQJWKV
^
XQVLJQHGFKDUORJLFBYDOXH
XQVLJQHGFKDUVWUHQJWK
XQVLJQHGFKDUVWUHQJWK
`VBVWUHQJWKV
)LJXUH³7KH9&/VBVWUHQJWKVVWUXFWXUH
7KHYDOXHVRIWKHVBVWUHQJWKVVWUXFWXUHÀHOGVDUHGHÀQHGLQ7DEOH
7DEOH³3UHGHÀQHGRXWBYDOXHFRQVWDQWV
,IVBVWUHQJWKVLV
&GDWDW\SH
'HVFULSWLRQ
ORJLFBYDOXH
XQVLJQHGFKDU
$SUHGHÀQHGFRQVWDQWIURPWKHIROORZLQJ
YFOYFOYFO;YFO[YFO=YFO]
VWUHQJWK
VWUHQJWK
XQVLJQHGFKDU
$SUHGHÀQHGFRQVWDQWIURPWKHIROORZLQJ
YFO6XSSO\
YFO:HDN
YFO6WURQJ
YFO0HGLXP
YFO3XOO
YFO6PDOO
YFO/DUJH
YFO+LJK=
7KHVWUHQJWKDQGVWUHQJWKÀHOGVRIWKHVBVWUHQJWKVVWUXFWXUHFDQUHSUHVHQW
D
$NQRZQVWUHQJWK³ZKHQVWUHQJWKDQGVWUHQJWKFRQWDLQWKHVDPHYDOXHWKHVLJQDOVWUHQJWKVKDOOEHWKDW
YDOXH
E
$Q DPELJXRXV VWUHQJWK ZLWK D NQRZQ ORJLFBYDOXH³ZKHQ VWUHQJWK DQG VWUHQJWK FRQWDLQ GLIIHUHQW YDOXHV
DQGWKHORJLFBYDOXHFRQWDLQVHLWKHUYFORUYFOWKHVLJQDOVWUHQJWKVKDOOEHDQDPELJXRXVVWUHQJWKZKHUHWKH
VWUHQJWK YDOXH VKDOO EH WKH PD[LPXP SRVVLEOH VWUHQJWK DQG VWUHQJWK VKDOO EH WKH PLQLPXP SRVVLEOH
VWUHQJWK
F
$QDPELJXRXVVWUHQJWKZLWKDQXQNQRZQORJLFBYDOXH³ZKHQVWUHQJWKDQGVWUHQJWKFRQWDLQGLIIHUHQWYDOXHV
DQGWKHORJLFBYDOXHFRQWDLQVYFO;WKHVLJQDOVWUHQJWKVKDOOEHDQDPELJXRXVVWUHQJWKZKHUHWKHVWUHQJWK
YDOXHVKDOOEHWKHORJLFFRPSRQHQWDQGVWUHQJWKVKDOOEHWKHORJLFFRPSRQHQW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
$IIHFWVRIDFFBLQLWLDOL]HDQGDFFBFORVHRQ9&/FRQVXPHUURXWLQHV
7KH $&& URXWLQHV DFFBLQLWLDOL]H DQG DFFBFORVH VKDOO UHVHW DOO FRQÀJXUDWLRQ SDUDPHWHUV VHW E\ WKH URXWLQH
DFFBFRQÀJXUH EDFN WR GHIDXOW YDOXHV &DUH VKRXOG EH WDNHQ WR HQVXUH WKDW WKH9&/ FRQVXPHU URXWLQH GRHV QRW
GHSHQGRQDQ\FRQÀJXUDWLRQSDUDPHWHUVDVWKHVHSDUDPHWHUVPLJKWQRWKDYHWKHVDPHYDOXHZKHQD9&/FDOOEDFN
RFFXUV5HIHUWRRQDFFBFRQÀJXUHIRUDOLVWRIURXWLQHVWKDWDUHDIIHFWHGE\FRQÀJXUDWLRQSDUDPHWHUV
$QH[DPSOHRIXVLQJ9&/$&&URXWLQHV
7KH IROORZLQJ H[DPSOH FRQWDLQV WKUHH 3/, URXWLQHV D FKHFNWI DSSOLFDWLRQ D FDOOWI DSSOLFDWLRQ DQG D FRQVXPHU
URXWLQH 7KH H[DPSOH LV EDVHG RQ WKH FKHFNWI DQG FDOOWI DSSOLFDWLRQV ERWK EHLQJ DVVRFLDWHG ZLWK WZR XVHUGHÀQHG
V\VWHPWDVNVXVLQJWKH3/,LQWHUIDFHPHFKDQLVPGHVFULEHGLQ6HFWLRQ
QHWBPRQLWRUQHWBQDPH!QHWBQDPH!
QHWBPRQLWRUBRIIQHWBQDPH!QHWBQDPH!
7KH FKHFNWI DSSOLFDWLRQ QHWPRQBFKHFNWI LV VKRZQ EHORZ 7KLV DSSOLFDWLRQ SHUIRUPV V\QWD[ FKHFNLQJ RQ
LQVWDQFHVRIWKHXVHUGHÀQHGV\VWHPWDVNVWRHQVXUHWKHUHLVDWOHDVWRQHDUJXPHQWDQGWKDWWKHDUJXPHQWVDUHYDOLGQHW
QDPHV
LQFOXGHYHULXVHUK
LQFOXGHDFFBXVHUK
LQWQHWPRQBFKHFNWI
^
LQWL
LQWDUJBFQW WIBQXPS
LQLWLDOL]HWKHHQYLURQPHQWIRUDFFHVVURXWLQHV
DFFBLQLWLDOL]H
VHWWKHGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
FKHFNQXPEHUDQGW\SHRIWDVNIXQFWLRQDUJXPHQWV
LIWIBQXPS WIBHUURU´QHWBPRQLWRU>BRII@PXVWKDYHDWOHDVWRQHDUJXPHQWµ
HOVH
IRUL L DUJBFQWL
LIDFFBIHWFKBW\SHDFFBKDQGOHBWIDUJ DFF1HW
WIBHUURUQHWBPRQLWRU>BRII@DUJGLVQRWDQHWW\SHL
DFFBFORVH
`
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHFDOOWIDSSOLFDWLRQQHWPRQBFDOOWIIROORZV7KLVDSSOLFDWLRQJHWVDKDQGOHWRHDFKWDVNIXQFWLRQDUJXPHQWDQG
HLWKHUDGGVRUGHOHWHVD9&/PRQLWRURQWKHQHW7KHDSSOLFDWLRQFKHFNVWKHGDWD&DUJXPHQWDVVRFLDWHGZLWKHDFK
V\VWHPWDVNQDPHWRGHWHUPLQHZKHWKHUWKHDSSOLFDWLRQZDVFDOOHGE\QHWBPRQLWRURUQHWBPRQLWRUBRII
LQFOXGHYHULXVHUK
LQFOXGHDFFBXVHUK
LQFOXGHPDOORFK!
LQWQHWPRQBFDOOWIGDWD
LQWGDWD
^
KDQGOHQHW
LQWQHWPRQBFRQVXPHU
FKDUQHWBQDPH
LQWWIQXP
GHILQH$''GDWDYDOXHDVVRFLDWHGZLWKQHWBPRQLWRU
GHILQH'(/(7(GDWDYDOXHDVVRFLDWHGZLWKQHWBPRQLWRUBRII
LQLWLDOL]HWKHHQYLURQPHQWIRUDFFHVVURXWLQHV
DFFBLQLWLDOL]H
VHWWKHGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VZLWFKGDWDVHHZKLFKV\VWHPWDVNQDPHFDOOHGWKLVDSSOLFDWLRQ
^
FDVH$''FDOOHGE\QHWBPRQLWRU
DGGD9&/IODJWRHDFKQHWLQWKHWDVNIXQFWLRQDUJXPHQWOLVW
WIQXP ZKLOHQHW DFFBKDQGOHBWIDUJWIQXP QXOO
^
DOORFDWHPHPRU\IRUWKHQHWQDPHRIWKLVDUJXPHQW
QHWBQDPH PDOORFVWUOHQDFFBIHWFKBQDPHQHW
SUHVHUYHWKHQHWQDPHLQDFKDUDFWHUVWULQJ
VWUFS\QHWBQDPHDFFBIHWFKBQDPHQHW
DGGD9&/PRQLWRUSDVVQHWQDPHSRLQWHUDVXVHUBGDWDDUJXPHQW
DFFBYFOBDGGQHWQHWPRQBFRQVXPHUQHWBQDPHYFOBYHULORJBORJLF
`
EUHDN
FDVH'(/(7(FDOOHGE\QHWBPRQLWRUBRII
WIQXP ZKLOHQHW DFFBKDQGOHBWIDUJWIQXP QXOO
^
GHOHWHWKH9&/PRQLWRU
DFFBYFOBGHOHWHQHWQHWPRQBFRQVXPHUQHWBQDPHYFOBYHULORJ
`
EUHDN
`
DFFBFORVH
`
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHFRQVXPHUURXWLQHQHWPRQBFRQVXPLVVKRZQLQWKHIROORZLQJH[DPSOH7KHFRQVXPHUURXWLQHLVFDOOHGE\WKH
9&/FDOOEDFNPHFKDQLVP6LQFHWKHFKHFNWIDSSOLFDWLRQRQO\SHUPLWVQHWGDWDW\SHVWREHXVHGWKHFRQVXPHUURXWLQH
RQO\QHHGVWRFKHFNIRUVFDODUDQGYHFWRUQHWYDOXHFKDQJHVZKHQLWLVFDOOHG
LQFOXGHYHULXVHUK
LQFOXGHDFFBXVHUK
LQWQHWPRQBFRQVXPHUYFBUHFRUG
SBYFBUHFRUGYFBUHFRUGUHFRUGW\SHSDVVHGWRFRQVXPHUURXWLQH
^
FKDUQHWBYDOXHYDOXH
KDQGOHYHFWRUBYDOXH
FKHFNUHDVRQ9&/FDOOEDFNRFFXUUHG
VZLWFKYFBUHFRUG!YFBUHDVRQ
^
FDVHORJLFBYDOXHBFKDQJHVFDODUVLJQDOFKDQJHGORJLFYDOXH
^
QHWBYDOXH YFBUHFRUG!RXWBYDOXHORJLFBYDOXH
FRQYHUWORJLFYDOXHFRQVWDQWWRDFKDUDFWHUIRUSULQWLQJ
VZLWFKQHWBYDOXH
^
FDVHYFOYDOXH ··EUHDN
FDVHYFOYDOXH ··EUHDN
FDVHYFO;YDOXH ·;·EUHDN
FDVHYFO=YDOXH ·=·EUHDN
`
LRBSULQWI´GV F?Qµ
YFBUHFRUG!YFBORZWLPHYFBUHFRUG!XVHUBGDWDYDOXH
EUHDN
`
FDVHYHFWRUBYDOXHBFKDQJHYHFWRUVLJQDOFKDQJHGORJLFYDOXH
^
YHFWRUBYDOXH YFBUHFRUG!RXWBYDOXHYHFWRUBKDQGOH
LRBSULQWIGV V?Q
YFBUHFRUG!YFBORZWLPHYFBUHFRUG!XVHUBGDWD
DFFBIHWFKBYDOXHYHFWRUBYDOXHE
EUHDN
`
`
`
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
$&&URXWLQHGHÀQLWLRQV
7KLVVHFWLRQGHVFULEHVWKH3/,DFFHVV$&&URXWLQHVH[SODLQLQJWKHLUIXQFWLRQV\QWD[DQGXVDJH7KHURXWLQHVDUH
OLVWHGLQDOSKDEHWLFDORUGHU
7KHIROORZLQJFRQYHQWLRQVDUHXVHGLQWKHGHÀQLWLRQVRIWKH3/,URXWLQHVGHVFULEHGLQVHFWLRQVDQG
6\QRSVLV $ EULHI GHVFULSWLRQ RI WKH 3/, URXWLQH IXQFWLRQDOLW\ LQWHQGHG WR EH XVHG DV D TXLFN UHIHUHQFH ZKHQ
VHDUFKLQJIRU3/,URXWLQHVWRSHUIRUPVSHFLÀFWDVNV
6\QWD[7KHH[DFWQDPHRIWKH3/,URXWLQHDQGWKHRUGHURIWKHDUJXPHQWVSDVVHGWRWKHURXWLQH
5HWXUQV7KHGHÀQLWLRQRIWKHYDOXHUHWXUQHGZKHQWKH3/,URXWLQHLVFDOOHGDORQJZLWKDEULHIGHVFULSWLRQRIZKDW
WKHYDOXHUHSUHVHQWV7KHUHWXUQGHÀQLWLRQFRQWDLQVWKHÀHOGV
³
7\SH7KHGDWDW\SHRIWKH&YDOXHWKDWLVUHWXUQHG7KHGDWDW\SHLVHLWKHUDVWDQGDUG$16,&W\SHRUDVSHFLDO
W\SHGHÀQHGZLWKLQWKH3/,
³
'HVFULSWLRQ$EULHIGHVFULSWLRQRIZKDWWKHYDOXHUHSUHVHQWV
$UJXPHQWV7KHGHÀQLWLRQRIWKHDUJXPHQWVSDVVHGZLWKDFDOOWRWKH3/,URXWLQH7KHDUJXPHQWGHÀQLWLRQFRQWDLQV
WKHÀHOGV
³
7\SH7KHGDWDW\SHRIWKH&YDOXHVWKDWDUHSDVVHGDVDUJXPHQWV7KHGDWDW\SHLVHLWKHUDVWDQGDUG$16,&
W\SHRUDVSHFLDOW\SHGHÀQHGZLWKLQWKH3/,
³
1DPH7KHQDPHRIWKHDUJXPHQWXVHGLQWKH6\QWD[GHÀQLWLRQ
³
'HVFULSWLRQ$EULHIGHVFULSWLRQRIZKDWWKHYDOXHUHSUHVHQWV
$OODUJXPHQWVVKDOOEHFRQVLGHUHGPDQGDWRU\XQOHVVVSHFLÀFDOO\QRWHGLQWKHGHÀQLWLRQRIWKH3/,URXWLQH7ZRWDJV
DUHXVHGWRLQGLFDWHDUJXPHQWVWKDWPD\QRWEHUHTXLUHG
³ &RQGLWLRQDO$UJXPHQWVWDJJHGDVFRQGLWLRQDOVKDOOEHUHTXLUHGRQO\LIDSUHYLRXVDUJXPHQWLVVHWWRDVSHFLÀF
YDOXHRULIDFDOOWRDQRWKHU3/,URXWLQHKDVFRQÀJXUHGWKH3/,WRUHTXLUHWKHDUJXPHQWV7KH3/,URXWLQHGHI
LQLWLRQH[SODLQVZKHQFRQGLWLRQDODUJXPHQWVDUHUHTXLUHG
³ 2SWLRQDO$UJXPHQWVWDJJHGDVRSWLRQDOPD\KDYHGHIDXOWYDOXHVZLWKLQWKH3/,EXWWKH\PD\EHUHTXLUHGLID
SUHYLRXVDUJXPHQWLVVHWWRDVSHFLÀFYDOXHRULIDFDOOWRDQRWKHU3/,URXWLQHKDVFRQÀJXUHGWKH3/,WRUHTXLUH
WKH DUJXPHQWV 7KH 3/, URXWLQH GHÀQLWLRQ H[SODLQV WKH GHIDXOW YDOXHV DQG ZKHQ RSWLRQDO DUJXPHQWV DUH
UHTXLUHG
5HODWHG URXWLQHV$ OLVW RI 3/, URXWLQHV WKDW DUH W\SLFDOO\ XVHG ZLWK RU SURYLGH VLPLODU IXQFWLRQDOLW\ WR WKH 3/,
URXWLQHEHLQJGHÀQHG7KLVOLVWLVSURYLGHGDVDFRQYHQLHQFHWRIDFLOLWDWHÀQGLQJLQIRUPDWLRQLQWKLVVWDQGDUG,WLVQRW
LQWHQGHGWREHDOOLQFOXVLYHDQGLWGRHVQRWLPSO\WKDWWKHUHODWHGURXWLQHVKDYHWREHXVHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBDSSHQGBGHOD\V
DFFBDSSHQGBGHOD\VIRUVLQJOHGHOD\YDOXHVDFF0LQ7\S0D['HOD\VVHWWRIDOVH
6\QRSVLV
$GGGHOD\VWRH[LVWLQJGHOD\RQSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVDQGPRGXOHLQSXWSRUWV
6\QWD[
3ULPLWLYHV
3RUWV
3RUWELWV
DFFBDSSHQGBGHOD\VREMHFWBKDQGOHULVHBGHOD\IDOOBGHOD\]BGHOD\
0RGXOHSDWKV
DFFBDSSHQGBGHOD\VREMHFWBKDQGOH
GGGGGGGGGGGG
7LPLQJFKHFNV
DFFBDSSHQGBGHOD\VREMHFWBFKHFNBKDQGOHOLPLW
7\SH
5HWXUQV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNPRGXOH
LQSXWSRUWRUELWRIDPRGXOHLQSXWSRUW
GRXEOH
ULVHBGHOD\
IDOOBGHOD\
5LVHDQGIDOOWUDQVLWLRQGHOD\IRUVWDWHSULPLWLYHVVWDWH
SULPLWLYHVPRGXOHLQSXWSRUWVDQGPRGXOHLQSXWSRUWELWV
GRXEOH
]BGHOD\
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR
GHOD\IRUDOOWUDQVLWLRQVIRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
ULVHWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
IDOOWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR
WXUQRIIWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
G
G
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
GLV=!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV=!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
G
G
G
G
G
,IDFF3DWK'HOD\&RXQWLVVHWWR
GLV!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV=!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GRXEOH
OLPLW
/LPLWRIWLPLQJFKHFN
$UJXPHQWV
&RQGLWLRQDO
6HFWLRQ
'HVFULSWLRQ
,IDFF7R+L='HOD\LVVHWWRIURPBXVHU
WXUQRIIWR=WUDQVLWLRQGHOD\IRUVWDWHSULPLWLYHVPRGXOH
LQSXWSRUWVDQGPRGXOHLQSXWSRUWELWV
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBDSSHQGBGHOD\VIRUPLQW\SPD[GHOD\VDFF0LQ7\S0D['HOD\VVHWWRWUXH
6\QRSVLV
$GGPLQW\SPD[GHOD\YDOXHVWRH[LVWLQJGHOD\YDOXHVIRUSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVRU
PRGXOHLQSXWSRUWVWKHGHOD\YDOXHVDUHFRQWDLQHGLQDQDUUD\
6\QWD[
DFFBDSSHQGBGHOD\VREMHFWBKDQGOHDUUD\BSWU
7\SH
5HWXUQV
$UJXPHQWV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNPRGXOH
LQSXWSRUWRUELWRIDPRGXOHLQSXWSRUW
GRXEOHDGGUHVV
DUUD\BSWU
3RLQWHUWRDUUD\RIPLQW\SPD[GHOD\YDOXHV
WKHVL]HRIWKHDUUD\GHSHQGVRQWKHW\SHRIREMHFWDQGWKH
VHWWLQJRIDFF3DWK'HOD\&RXQWVHH
7KH $&& URXWLQH DFFBDSSHQGBGHOD\V VKDOO ZRUN GLIIHUHQWO\ GHSHQGLQJ RQ KRZ WKH FRQÀJXUDWLRQ SDUDPHWHU
DFF0LQ7\S0D['HOD\VLVVHW:KHQWKLVSDUDPHWHULVVHWWR IDOVHDVLQJOHGHOD\SHUWUDQVLWLRQVKDOOEHDVVXPHG
DQGGHOD\VVKDOOEHSDVVHGDVLQGLYLGXDODUJXPHQWV)RUWKLVVLQJOHGHOD\PRGHWKHÀUVWV\QWD[WDEOHLQWKLVFODXVH
VKDOODSSO\
:KHQ DFF0LQ7\S0D['HOD\V LV VHW WR WUXH DFFBDSSHQGBGHOD\V VKDOO SDVV RQH RU PRUH VHWV RI
PLQLPXPW\SLFDOPD[LPXPGHOD\VFRQWDLQHGLQDQDUUD\UDWKHUWKDQVLQJOHGHOD\VSDVVHGDVLQGLYLGXDODUJXPHQWV
)RUWKLVPLQW\SPD[GHOD\PRGHWKHVHFRQGV\QWD[WDEOHLQWKLVFODXVHVKDOODSSO\
7KHQXPEHUGHOD\YDOXHVDSSHQGHGE\DFFBDSSHQGBGHOD\VVKDOOEHGHWHUPLQHGE\WKHW\SHRIREMHFWDQGWKHVHWWLQJ
RIFRQÀJXUDWLRQSDUDPHWHUV5HIHUWRIRUDGHVFULSWLRQRIKRZWKHQXPEHURIGHOD\YDOXHVDUHGHWHUPLQHG
7KHDFFBDSSHQGBGHOD\VURXWLQHVKDOOZULWHGHOD\VLQWKHWLPHVFDOHRIWKHPRGXOHWKDWFRQWDLQVWKHREMHFWBKDQGOH
7KH H[DPSOH VKRZQ LQ )LJXUH LV DQ H[DPSOH RI EDFNDQQRWDWLRQ ,W UHDGV QHZ GHOD\ YDOXHV IURP D ÀOH FDOOHG
SULPGHOD\GDWDQGXVHV DFFBDSSHQGBGHOD\VWRDGGWKHPWRWKHFXUUHQWGHOD\VRQDJDWH7KHIRUPDWRIWKHÀOHLV
VKRZQEHORZ
ULVHGHOD\
WRSPEXI
QDPHRIJDWH
IDOOGHOD\
WXUQRIIGHOD\
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHVWGLRK!
LQFOXGHDFFBXVHUK
ZULWHBJDWHBGHOD\V
^
),/(
LQILOH
FKDU
IXOOBJDWHBQDPH>1$0(B6,=(@
GRXEOH
ULVHIDOOWR]
KDQGOH
JDWHBKDQGOH
LQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
UHDGGHOD\VIURPILOHUPHDQVUHDGRQO\
LQILOH IRSHQSULPGHOD\GDWU
ZKLOHIVFDQILQILOH´VOIOIOIµ
IXOOBJDWHBQDPHULVHIDOOWR] (2)
^
JHWKDQGOHIRUWKHJDWH
JDWHBKDQGOH DFFBKDQGOHBREMHFWIXOOBJDWHBQDPH
DGGQHZGHOD\VWRFXUUHQWYDOXHVIRUWKHJDWH
DFFBDSSHQGBGHOD\VJDWHBKDQGOHULVHIDOOWR]
`
`
DFFBFORVH
)LJXUH³8VLQJDFFBDSSHQGBGHOD\VLQVLQJOHGHOD\YDOXHPRGH
7KH H[DPSOH VKRZQ LQ )LJXUH VKRZV KRZ WR DSSHQG PLQW\SPD[ GHOD\V IRU D VWDWH SULPLWLYH QR KLJK
LPSHGDQFHVWDWH7KH&DSSOLFDWLRQIROORZVWKHVHVWHSV
D
'HFODUHVDQDUUD\RIQLQHGRXEOHSUHFLVLRQÁRDWLQJSRLQWYDOXHVWRKROGWKUHHVHWVRIPLQW\SPD[YDOXHVRQH
VHWHDFKIRUULVLQJWUDQVLWLRQVIDOOLQJWUDQVLWLRQVDQGWUDQVLWLRQVWR=
E
6HWVWKHFRQÀJXUDWLRQSDUDPHWHU DFF0LQ7\S0D['HOD\VWR WUXHWRLQVWUXFW DFFBDSSHQGBGHOD\VWRZULWH
GHOD\VLQPLQW\SPD[IRUPDW
F
&DOOVDFFBDSSHQGBGHOD\VZLWKDYDOLGSULPLWLYHKDQGOHDQGWKHDUUD\SRLQWHU
6LQFH WKH SULPLWLYH WR EH XVHG LQ WKLV H[DPSOH GRHV QRW KDYH D KLJKLPSHGDQFH VWDWH DFFBDSSHQGBGHOD\V
DXWRPDWLFDOO\DSSHQGVMXVWWKHULVHDQGIDOOGHOD\YDOXHVHWV7KHODVWWKUHHDUUD\HOHPHQWVIRUWKHWR=GHOD\YDOXHVDUH
QRWXVHG+RZHYHUHYHQWKRXJKWKHODVWWKUHHDUUD\HOHPHQWVDUHQRWXVHGZLWKDVWDWHSULPLWLYHWKHV\QWD[IRUXVLQJ
PLQW\SPD[GHOD\VUHTXLUHVWKDWWKHDUUD\FRQWDLQDOOQLQHHOHPHQWV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
)RU WKLV H[DPSOH WKH & DSSOLFDWLRQ DSSHQGBPLQW\SPD[BGHOD\V LV DVVRFLDWHG WKURXJK WKH $&& LQWHUIDFH
PHFKDQLVP ZLWK D XVHUGHÀQHG V\VWHP WDVN FDOOHG DSSHQGSULPGHOD\V$ SULPLWLYH ZLWK QR = VWDWH DQG QHZ
GHOD\YDOXHVDUHSDVVHGDVWDVNIXQFWLRQDUJXPHQWVWRDSSHQGSULPGHOD\VDVIROORZV
W\SLFDO
IDOOGHOD\
DVWDWHSULPLWLYH
PD[LPXP
IDOOGHOD\
DSSHQGSULPGHOD\VJ
PLQLPXP
ULVHGHOD\
W\SLFDO
ULVHGHOD\
PD[LPXP
ULVHGHOD\
PLQLPXP
IDOOGHOD\
LQFOXGHDFFBXVHUK
DSSHQGBPLQW\SPD[BGHOD\V
^
KDQGOH
SULP
GRXEOH
GHOD\BDUUD\>@
LQW
L
GHOD\BDUUD\KDVWREH
ODUJHHQRXJKWRKROG
QLQHYDOXHVWRKDQGOH
ERWKVWDWHSULPLWLYHV
DQGVWDWHSULPLWLYHV
DFFBFRQILJXUHDFF0LQ7\S0D['HOD\VWUXH
JHWKDQGOHIRUSULPLWLYH
SULP DFFBKDQGOHBWIDUJ
VWRUHQHZGHOD\YDOXHVLQDUUD\
IRUL LL
GHOD\BDUUD\>L@ DFFBIHWFKBWIDUJL
`
DSSHQGPLQW\SPD[GHOD\V
DFFBDSSHQGBGHOD\VSULPGHOD\BDUUD\
)LJXUH³8VLQJDFFBDSSHQGBGHOD\VLQPLQW\SPD[PRGH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBDSSHQGBSXOVHUH
DFFBDSSHQGBSXOVHUH
6\QRSVLV
$GGGHOD\VWRH[LVWLQJSXOVHKDQGOLQJUHMHFWBYDOXHDQGHBYDOXHIRUDPRGXOHSDWK
6\QWD[
DFFBDSSHQGBSXOVHUHSDWKUHUHUHUHUHUH
UHUHUHUHUHUH
7\SH
5HWXUQV
ERRO
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SDWK
GRXEOH
UU
UHMHFWBOLPLWYDOXHVWKHQXPEHURIDUJXPHQWVLVGHWHUPLQHG
E\DFF3DWK'HOD\&RXQW
GRXEOH
HH
HBOLPLWYDOXHVWKHQXPEHURIDUJXPHQWVLVGHWHUPLQHGE\
DFF3DWK'HOD\&RXQW
+DQGOHRIPRGXOHSDWK
8VHDFFBIHWFKBSXOVHUHWRJHWFXUUHQWSXOVHKDQGOLQJYDOXHV
8VHDFFBUHSODFHBSXOVHUHWRUHSODFHH[LVWLQJSXOVHKDQGOLQJYDOXHV
8VHDFFBVHWBSXOVHUHWRVHWSXOVHKDQGOLQJYDOXHVDVDSHUFHQWDJHRIWKHSDWKGHOD\
7KH$&&URXWLQHDFFBDSSHQGBSXOVHUHVKDOODGGWRDQH[LVWLQJSXOVHKDQGOLQJUHMHFWBOLPLWYDOXHDQGHBOLPLWYDOXH
IRUDPRGXOHSDWK7KHUHMHFWBOLPLWDQGHBOLPLWYDOXHVDUHXVHGWRFRQWUROKRZSXOVHVDUHSURSDJDWHGWKURXJKPRGXOH
SDWKV
$SXOVHLVGHÀQHGDVWZRWUDQVLWLRQVRQWKHVDPHSDWKWKDWRFFXULQDVKRUWHUSHULRGRIWLPHWKDQWKHSDWKGHOD\3XOVH
FRQWUROYDOXHVGHWHUPLQHZKHWKHUDSXOVHVKRXOGEHUHMHFWHGSURSDJDWHGWKURXJKWRWKHRXWSXWRUFRQVLGHUHGDQHUURU
7KHSXOVHFRQWUROYDOXHVFRQVLVWRIDUHMHFWBOLPLWDQGDQHBOLPLWSDLURIYDOXHVZKHUH
³ 7KH UHMHFWBOLPLW VKDOO VHW D WKUHVKROG IRU GHWHUPLQLQJ ZKHQ WR UHMHFW D SXOVH³DQ\ SXOVH OHVV WKDQ WKH
UHMHFWBOLPLWVKDOOQRWSURSDJDWHWRWKHRXWSXWRIWKHSDWK
³ 7KHHBOLPLWVKDOOVHWDWKUHVKROGIRUGHWHUPLQLQJZKHQDSXOVHLVFRQVLGHUHGWREHDQHUURU³DQ\SXOVHOHVV
WKDQWKHHBOLPLWDQGJUHDWHUWKDQRUHTXDOWRWKHUHMHFWBOLPLWVKDOOSURSDJDWHDORJLF[WRWKHSDWKRXWSXW
³ $SXOVHWKDWLVJUHDWHUWKDQRUHTXDOWRWKHHBOLPLWVKDOOSURSDJDWHWKURXJKWRWKHSDWKRXWSXW
7DEOHLOOXVWUDWHVWKHUHODWLRQVKLSEHWZHHQWKHUHMHFWBOLPLWDQGWKHHBOLPLW
7DEOH³3DWKSXOVHFRQWUROH[DPSOH
:KHQ
UHMHFWBOLPLW HBOLPLW 7KHSXOVHRQDPRGXOHSDWKRXWSXWVKDOOEH
5HMHFWHGLI
$QHUURULI*DQG
3DVVHGLI*
7KHIROORZLQJUXOHVVKDOODSSO\ZKHQVSHFLI\LQJSXOVHKDQGOLQJYDOXHV
D
7KHYDOXHRIUHMHFWBOLPLWVKDOOEHOHVVWKDQRUHTXDOWRWKHYDOXHRIHBOLPLW
6HFWLRQ
,(((
6WG
E
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHUHMHFWBOLPLWDQGHBOLPLWVKDOOQRWEHJUHDWHUWKDQWKHSDWKGHOD\
7KH QXPEHU RI SXOVH FRQWURO YDOXHV WKDW DFFBDSSHQGBSXOVHUH VHWV VKDOO EH FRQWUROOHG XVLQJ WKH $&& URXWLQH
DFFBFRQÀJXUHWRVHWWKHGHOD\FRXQWFRQÀJXUDWLRQSDUDPHWHUDFF3DWK'HOD\&RXQWDVVKRZQLQ7DEOH
7DEOH³+RZWKHYDOXHRIDFF3DWK'HOD\&RXQWDIIHFWVDFFBDSSHQGBSXOVHUH
:KHQDFF3DWK'HOD\&RXQWLV
DFFBDSSHQGBSXOVHUHVKDOOZULWH
2QHSDLURIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUDOOWUDQVLWLRQVUDQGH
7ZRSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUULVHWUDQVLWLRQVUDQGH
RQHSDLUIRUIDOOWUDQVLWLRQVUDQGH
7KUHHSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUULVHWUDQVLWLRQVUDQGH
RQHSDLUIRUIDOOWUDQVLWLRQVUDQGH
RQHSDLUIRUWXUQRIIWUDQVLWLRQVUDQGH
WKHGHIDXOW
6L[SDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV³DGLIIHUHQWSDLU
IRUHDFKSRVVLEOHWUDQVLWLRQDPRQJDQG=
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
7ZHOYHSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV³DGLIIHUHQW
SDLUIRUHDFKSRVVLEOHWUDQVLWLRQDPRQJ;DQG=
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!;WUDQVLWLRQVUDQGH
RQHSDLUIRU;!WUDQVLWLRQVUDQGH
RQHSDLUIRU!;WUDQVLWLRQVUDQGH
RQHSDLUIRU;!WUDQVLWLRQVUDQGH
RQHSDLUIRU;!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!;WUDQVLWLRQVUDQGH
7KHPLQLPXPQXPEHURISDLUVRIUHMHFWBOLPLWDQGHBOLPLWDUJXPHQWVWRSDVVWRDFFBDSSHQGBSXOVHUHKDVWRHTXDO
WKH YDOXH RI DFF3DWK'HOD\&RXQW $Q\ XQXVHG UHMHFWBOLPLW DQG HBOLPLW DUJXPHQW SDLUV VKDOO EH LJQRUHG E\
DFFBDSSHQGBSXOVHUHDQGFDQEHGURSSHGIURPWKHDUJXPHQWOLVW
,IDFF3DWK'HOD\&RXQWLVQRWVHWH[SOLFLWO\LWVKDOOGHIDXOWWRVL[WKHUHIRUHVL[SDLUVRISXOVHUHMHFWBOLPLWDQGHBOLPLW
DUJXPHQWV KDYH WR EH SDVVHG ZKHQ DFFBDSSHQGBSXOVHUH LV FDOOHG 1RWH WKDW WKH YDOXH DVVLJQHG WR
DFF3DWK'HOD\&RXQW DOVR DIIHFWV DFFBDSSHQGBGHOD\V DFFBIHWFKBGHOD\V DFFBUHSODFHBGHOD\V
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
3XOVHFRQWUROYDOXHVVKDOOEHDSSHQGHGXVLQJWKHWLPHVFDOHRIWKHPRGXOHWKDWFRQWDLQVWKHSDWK
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBFORVH
DFFBFORVH
6\QRSVLV
)UHHLQWHUQDOPHPRU\XVHGE\$&&URXWLQHVUHVHWDOOFRQÀJXUDWLRQSDUDPHWHUVWRGHIDXOWYDOXHV
6\QWD[
DFFBFORVH
7\SH
5HWXUQV
YRLG
'HVFULSWLRQ
1RUHWXUQ
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBLQLWLDOL]HWRLQLWLDOL]HWKH$&&URXWLQHHQYLURQPHQW
7KH$&&URXWLQHDFFBFORVHVKDOOIUHHLQWHUQDOPHPRU\XVHGE\$&&URXWLQHVDQGUHVHWDOOFRQÀJXUDWLRQSDUDPHWHUV
WRGHIDXOWYDOXHV1RRWKHU$&&URXWLQHVVKRXOGEHFDOOHGDIWHUFDOOLQJDFFBFORVHLQSDUWLFXODU$&&URXWLQHVWKDW
DUHDIIHFWHGE\DFFBFRQÀJXUHVKRXOGQRWEHFDOOHG
3RWHQWLDOO\PXOWLSOH3/,DSSOLFDWLRQVUXQQLQJLQWKHVDPHVLPXODWLRQVHVVLRQFDQLQWHUIHUHZLWKHDFKRWKHUEHFDXVH
WKH\VKDUHWKHVDPHVHWRIFRQÀJXUDWLRQSDUDPHWHUV7RJXDUGDJDLQVWDSSOLFDWLRQLQWHUIHUHQFHERWK DFFBLQLWLDOL]H
DQGDFFBFORVHUHVHWDOOFRQÀJXUDWLRQSDUDPHWHUVWRWKHLUGHIDXOWYDOXHV
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHURXWLQHWKDWFDOOVDFFBFORVHEHIRUHH[LWLQJ
LQFOXGHDFFBXVHUK
VKRZBYHUVLRQV
^
KDQGOH
PRGXOHBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VKRZYHUVLRQRI$&&URXWLQHVDQGVLPXODWRU
LRBSULQWI5XQQLQJVZLWKV?QDFFBYHUVLRQDFFBSURGXFWBYHUVLRQ
`
DFFBFORVH
)LJXUH³8VLQJDFFBFORVH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBFROOHFW
DFFBFROOHFW
6\QRSVLV
2EWDLQDQDUUD\RIKDQGOHVIRUDOOREMHFWVUHODWHGWRDSDUWLFXODUUHIHUHQFHREMHFWJHWWKHQXPEHURIREMHFWV
FROOHFWHG
6\QWD[
DFFBFROOHFWDFFBQH[WBURXWLQHBQDPHREMHFWBKDQGOHQXPEHUBRIBREMHFWV
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOHDUUD\
DGGUHVV
'HVFULSWLRQ
$QDGGUHVVSRLQWHUWRDQDUUD\RIKDQGOHVRIWKHREMHFWVFROOHFWHG
7\SH
1DPH
'HVFULSWLRQ
SRLQWHUWR
DFFBQH[WB
URXWLQH
DFFBQH[WBURXWLQHBQDPH
$FWXDOQDPHXQTXRWHGRIWKHDFFBQH[WBURXWLQHWKDWÀQGV
WKHREMHFWVWREHFROOHFWHG
KDQGOH
REMHFWBKDQGOH
LQW
QXPEHUBRIBREMHFWV
+DQGOHRIWKHUHIHUHQFHREMHFWIRUDFFBQH[WBURXWLQH
,QWHJHUSRLQWHUZKHUHWKHFRXQWRIREMHFWVFROOHFWHGVKDOOEH
ZULWWHQ
$OODFFBQH[WBURXWLQHV
8VHDFFBIUHHWRIUHHPHPRU\DOORFDWHGE\DFFBFROOHFW
7KH$&&URXWLQHDFFBFROOHFWVKDOOVFDQWKURXJKDUHIHUHQFHREMHFWVXFKDVDPRGXOHDQGFROOHFWKDQGOHVWRDOO
RFFXUUHQFHVRIDVSHFLÀFWDUJHWREMHFW7KHFROOHFWLRQRIKDQGOHVVKDOOEHVWRUHGLQDQDUUD\ZKLFKFDQWKHQEHXVHGE\
RWKHU$&&URXWLQHV
7KH REMHFW DVVRFLDWHG ZLWK REMHFWBKDQGOH VKDOO EH D YDOLG W\SH RI KDQGOH IRU WKH UHIHUHQFH REMHFW UHTXLUHG E\ WKH
DFFBQH[WURXWLQHWREHFDOOHG
7KHURXWLQHDFFBFROOHFWVKRXOGEHXVHGLQWKHIROORZLQJVLWXDWLRQV
³ 7RUHWULHYHGDWDWKDWFDQEHXVHGPRUHWKDQRQFH
³ ,QVWHDGRIXVLQJQHVWHGRUFRQFXUUHQWFDOOVWRDFFBQH[WBORFRQQDFFBQH[WBKLFRQQDFFBQH[WBORDGDQG
DFFBQH[WBFHOOBORDGURXWLQHV
2WKHUZLVHLWFDQEHPRUHHIÀFLHQWWRXVHWKHDQDFFBQH[WBURXWLQHGLUHFWO\
7KHURXWLQHDFFBFROOHFWVKDOODOORFDWHPHPRU\IRUWKHDUUD\RIKDQGOHVLWUHWXUQV:KHQWKHKDQGOHVDUHQRORQJHU
QHHGHGWKHPHPRU\FDQEHIUHHGE\FDOOLQJWKHURXWLQHDFFBIUHH
7KH$&&URXWLQHDFFBQH[WBWRSPRGGRHVQRWZRUNZLWKDFFBFROOHFW+RZHYHUWRSOHYHOPRGXOHVFDQEHFROOHFWHG
E\SDVVLQJDFFBQH[WBFKLOGZLWKDQXOOUHIHUHQFHREMHFWDUJXPHQW)RUH[DPSOH
DFFBFROOHFWDFFBQH[WBFKLOGQXOOFRXQW
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHURXWLQHWKDWXVHVDFFBFROOHFWWRFROOHFWDQGGLVSOD\DOO
QHWVLQDPRGXOH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHDFFBXVHUK
GLVSOD\BQHWV
^
KDQGOH
OLVWBRIBQHWVPRGXOHBKDQGOH
LQW
QHWBFRXQWL
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUWKHPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
FROOHFWDOOQHWVLQWKHPRGXOH
OLVWBRIBQHWV DFFBFROOHFWDFFBQH[WBQHWPRGXOHBKDQGOHQHWBFRXQW
GLVSOD\QDPHVRIQHWLQVWDQFHV
IRUL LQHWBFRXQWL
LRBSULQWI1HWQDPHLVV?QDFFBIHWFKBQDPHOLVWBRIBQHWV>L@
IUHHPHPRU\XVHGE\DUUD\OLVWBRIBQHWV
DFFBIUHHOLVWBRIBQHWV
`
DFFBFORVH
)LJXUH³8VLQJDFFBFROOHFW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBFRPSDUHBKDQGOHV
DFFBFRPSDUHBKDQGOHV
6\QRSVLV
'HWHUPLQHLIWZRKDQGOHVUHIHUWRWKHVDPHREMHFW
6\QWD[
DFFBFRPSDUHBKDQGOHVKDQGOHKDQGOH
7\SH
5HWXUQV
'HVFULSWLRQ
ERRO
$UJXPHQWV
WUXHLIKDQGOHVUHIHUWRWKHVDPHREMHFWIDOVHLIGLIIHUHQWREMHFWV
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
KDQGOH
+DQGOHWRDQ\REMHFWV
KDQGOH
KDQGOH
+DQGOHWRDQ\REMHFWV
7KH$&&URXWLQHDFFBFRPSDUHBKDQGOHVVKDOOGHWHUPLQHLIWZRKDQGOHVUHIHUWRWKHVDPHREMHFW,QVRPHFDVHVWZR
GLIIHUHQWKDQGOHVPLJKWUHIHUHQFHWKHVDPHREMHFWLIHDFKKDQGOHLVUHWULHYHGLQDGLIIHUHQWZD\³IRUH[DPSOHLIDQ
DFFBQH[WURXWLQHUHWXUQVRQHKDQGOHDQGDFFBKDQGOHBREMHFWUHWXUQVWKHRWKHU
7KH&
RSHUDWRUFDQQRWEHXVHGWRGHWHUPLQHLIWZRKDQGOHVUHIHUHQFHWKHVDPHREMHFW
LIKDQGOH
KDQGOHWKLVGRHVQRWZRUN
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBFRPSDUHBKDQGOHV WR GHWHUPLQH LI D SULPLWLYH GULYHV WKH VSHFLÀHG
RXWSXWRIDVFDODUSRUWRIDPRGXOH
LQFOXGHDFFBXVHUK
ERRO SULPBGULYHVBVFDODUBSRUWSULPPRGSRUWBQXP
KDQGOH
SULPPRG
LQW
SRUWBQXP
^
UHWULHYHQHWFRQQHFWHGWRVFDODUSRUW
KDQGOH SRUW DFFBKDQGOHBSRUWPRGSRUWBQXP
KDQGOH
SRUWBFRQQ DFFBQH[WBORFRQQSRUWQXOO
UHWULHYHQHWFRQQHFWHGWRSULPLWLYHRXWSXW
KDQGOH
RXWBWHUP DFFBKDQGOHBWHUPLQDOSULP
KDQGOH
SULPBFRQQ DFFBKDQGOHBFRQQRXWBWHUP
`
FRPSDUHKDQGOHV
LIDFFBFRPSDUHBKDQGOHVSRUWBFRQQSULPBFRQQ
UHWXUQWUXH
HOVH
,ISRUWBFRQQDQGSULPBFRQQ
UHIHUWRWKHVDPHFRQQHFWLRQ
UHWXUQIDOVH
WKHQWKHSULPGULYHVSRUW
)LJXUH³8VLQJDFFBFRPSDUHBKDQGOHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBFRQÀJXUH
DFFBFRQÀJXUH
6\QRSVLV
6HWSDUDPHWHUVWKDWFRQWUROWKHRSHUDWLRQRIYDULRXV$&&URXWLQHV
6\QWD[
DFFBFRQILJXUHFRQILJXUDWLRQBSDUDPHWHUFRQILJXUDWLRQBYDOXH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
LQWHJHUFRQVWDQW
FRQÀJXUDWLRQBSDUDPHWHU
TXRWHGVWULQJ
FRQÀJXUDWLRQBYDOXH
)RUDFF'HIDXOW$WWU
DFFBIHWFKBDWWULEXWH
)RUDFF'HYHORSPHQW9HUVLRQ
DOO$&&URXWLQHV
)RUDFF'LVSOD\(UURUV
DOO$&&URXWLQHV
)RUDFF'LVSOD\:DUQLQJV
DOO$&&URXWLQHV
)RUDFF(QDEOH$UJV
DFFBKDQGOHBPRGSDWK
DFFBKDQGOHBWFKN
DFFBVHWBVFRSH
)RUDFF0DS7R0LSG
DFFBDSSHQGBGHOD\V
DFFBUHSODFHBGHOD\V
)RUDFF0LQ7\S0D['HOD\V
DFFBDSSHQGBGHOD\V
DFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\V
'HVFULSWLRQ
2QHRIWKHIROORZLQJSUHGHÀQHG
FRQVWDQWV
DFF'HIDXOW$WWU
DFF'HYHORSPHQW9HUVLRQ
DFF'LVSOD\(UURUV
DFF'LVSOD\:DUQLQJV
DFF(QDEOH$UJV
DFF0DS7R0LSG
DFF0LQ7\S0D['HOD\V
2QHRIDÀ[HGVHWRIVWULQJYDOXHVIRU
WKHFRQÀJXUDWLRQBSDUDPHWHU
)RUDFF3DWK'HOLP6WU
DFFBIHWFKBDWWULEXWH
DFFBIHWFKBIXOOQDPH
DFFBIHWFKBQDPH
)RUDFF7R+L='HOD\
DFFBDSSHQGBGHOD\V
DFFBUHSODFHBGHOD\V
)RUDFF3DWK'HOD\&RXQW
DFFBDSSHQGBGHOD\V
DFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\V
DFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUH
7KH$&&URXWLQHDFFBFRQÀJXUHVKDOOVHWSDUDPHWHUVWKDWFRQWUROWKHRSHUDWLRQRIYDULRXV$&&URXWLQHV7DEOHV
WKURXJK GHVFULEH HDFK SDUDPHWHU DQG LWV VHW RI YDOXHV 1RWH WKDW D FDOO WR HLWKHU DFFBLQLWLDOL]H RU
DFFBFORVHVKDOOVHWHDFKFRQÀJXUDWLRQSDUDPHWHUEDFNWRLWVGHIDXOWYDOXH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³DFF'HIDXOW$WWUFRQÀJXUDWLRQSDUDPHWHU
6HWRIYDOXHV
(IIHFW
WUXH
DFFBIHWFKBDWWULEXWHVKDOOUHWXUQ]HUR
ZKHQLWGRHVQRWÀQGWKHDWWULEXWH
UHTXHVWHGDQGVKDOOLJQRUHWKH
GHIDXOWBYDOXHDUJXPHQW
IDOVH
DFFBIHWFKBDWWULEXWHVKDOOUHWXUQWKH
YDOXHSDVVHGDVWKHGHIDXOWBYDOXHDUJX
PHQWZKHQLWGRHVQRWÀQGWKHDWWULEXWH
UHTXHVWHG
DFF'HIDXOW$WWU
'HIDXOW
IDOVH
7DEOH³DFF'HYHORSPHQW9HUVLRQFRQÀJXUDWLRQSDUDPHWHU
DFF'HYHORSPHQW9HUVLRQ
6HWRIYDOXHV
(IIHFW
'HIDXOW
4XRWHGVWULQJRIOHWWHUV
QXPEHUVDQGWKHSHULRG
FKDUDFWHUWKDWIRUPDYDOLG
3/,YHUVLRQVXFKDV
´,(((3/,µ
&DQKHOSHQVXUHEDFNZDUGFRPSDW
LELOLW\E\LQGLFDWLQJZKLFKYHUVLRQ
RI$&&URXWLQHVZDVXVHGWR
GHYHORSD3/,DSSOLFDWLRQ
&XUUHQWYHUVLRQ
RI$&&URXWLQHV
6RIWZDUHYHQGRUVFDQ
GHÀQHYHUVLRQVWULQJVVSH
FLÀFWRWKHLUSURGXFWV
7DEOH³DFF'LVSOD\(UURUVFRQÀJXUDWLRQSDUDPHWHU
6HWRIYDOXHV
DFF'LVSOD\(UURUV
(IIHFW
WUXH
$&&URXWLQHVVKDOOGLVSOD\HUURU
PHVVDJHV
IDOVH
$&&URXWLQHVVKDOOQRWGLVSOD\HUURU
PHVVDJHV
'HIDXOW
WUXH
7DEOH³DFF'LVSOD\:DUQLQJVFRQÀJXUDWLRQSDUDPHWHU
DFF'LVSOD\:DUQLQJV
6HWRIYDOXHV
(IIHFW
'HIDXOW
WUXH
$&&URXWLQHVVKDOOGLVSOD\ZDUQLQJPHV
VDJHV
IDOVH
IDOVH
$&&URXWLQHVVKDOOQRWGLVSOD\ZDUQLQJ
PHVVDJHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³DFF(QDEOH$UJVFRQÀJXUDWLRQSDUDPHWHU
DFF(QDEOH$UJV
6HWRIYDOXHV
(IIHFW
'HIDXOW
DFFBKDQGOHBPRGSDWK
DFFBKDQGOHBPRGSDWKVKDOO
UHFRJQL]HLWVRSWLRQDODUJX
PHQWV
QRBDFFBKDQGOHBPRGSDWK
QRBDFFBKDQGOHBPRGSDWK
DFFBKDQGOHBPRGSDWKVKDOO
LJQRUHLWVRSWLRQDODUJXPHQWV
QRBDFFBVHWBVFRSH
DFFBKDQGOHBWFKN
DFFBKDQGOHBWFKNVKDOOUHF
RJQL]HLWVRSWLRQDODUJXPHQWV
QRBDFFBKDQGOHBWFKN
DFFBKDQGOHBWFKNVKDOO
LJQRUHLWVRSWLRQDODUJXPHQWV
DFFBVHWBVFRSH
DFFBVHWBVFRSHVKDOOUHFRJ
QL]HLWVRSWLRQDODUJXPHQWV
QRBDFFBVHWBVFRSH
DFFBVHWBVFRSHVKDOOLJQRUH
LWVRSWLRQDODUJXPHQWV
QRBDFFBKDQGOHBWFKN
7DEOH³DFF0DS7R0LSGFRQÀJXUDWLRQSDUDPHWHU
DFF0DS7R0LSG
6HWRIYDOXHV
(IIHFW
'HIDXOW
PD[
DFFBUHSODFHBGHOD\VVKDOOPDSWKHORQJ
HVWLQWHUPRGXOHSDWKGHOD\WRWKH0,3'
PD[
PLQ
DFFBUHSODFHBGHOD\VVKDOOPDSWKH
VKRUWHVWLQWHUPRGXOHSDWKGHOD\WRWKH
0,3'
ODWHVW
DFFBUHSODFHBGHOD\VVKDOOPDSWKHODVW
LQWHUPRGXOHSDWKGHOD\WRWKH0,3'
7DEOH³DFF0LQ7\S0D['HOD\VFRQÀJXUDWLRQSDUDPHWHU
6HWRIYDOXHV
(IIHFW
'HIDXOW
WUXH
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHPLQW\SPD[GHOD\VHWV
IDOVH
IDOVH
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHDVLQJOHGHOD\YDOXH
DFF0LQ7\S0D['HOD\V
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³DFF3DWK'HOD\&RXQWFRQÀJXUDWLRQSDUDPHWHU
DFF3DWK'HOD\&RXQW
6HWRIYDOXHV
(IIHFW
'HIDXOW
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHGHOD\YDOXHRUYDOXHVHW
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHGHOD\YDOXHVRUYDOXHVHWV
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHGHOD\YDOXHVRUYDOXHVHWV
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHGHOD\YDOXHVRUYDOXHVHWV
DFFBDSSHQGBGHOD\VDFFBIHWFKBGHOD\V
DFFBUHSODFHBGHOD\VDFFBDSSHQGBSXOVHUH
DFFBIHWFKBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
VKDOOXVHGHOD\YDOXHVRUYDOXHVHWV
7DEOH³DFF3DWK'HOLP6WUFRQÀJXUDWLRQSDUDPHWHU
DFF3DWK'HOLP6WU
6HWRIYDOXHV
(IIHFW
'HIDXOW
4XRWHGVWULQJRI
OHWWHUVQXPEHUV
RUB
DFFBIHWFKBQDPHDFFBIHWFKBIXOOQDPH
DQGDFFBIHWFKBDWWULEXWHVKDOOXVHWKH
VWULQJOLWHUDODVWKHGHOLPLWHUVHSDUDWLQJWKH
VRXUFHDQGGHVWLQDWLRQLQPRGXOHSDWK
QDPHV
7DEOH³DFF7R+L='HOD\FRQÀJXUDWLRQSDUDPHWHU
6HWRIYDOXHV
(IIHFW
'HIDXOW
DYHUDJH
DFFBDSSHQGBGHOD\VDQG
DFFBUHSODFHBGHOD\VVKDOOGHULYHWXUQRII
GHOD\VIURPWKHDYHUDJHRIWKHULVHDQGIDOO
GHOD\V
IURPBXVHU
PD[
DFFBDSSHQGBGHOD\VDQG
DFFBUHSODFHBGHOD\VVKDOOGHULYHWXUQRII
GHOD\VIURPWKHODUJHURIWKHULVHDQGIDOO
GHOD\V
PLQ
DFFBDSSHQGBGHOD\VDQG
DFFBUHSODFHBGHOD\VVKDOOGHULYHWXUQRII
GHOD\VIURPWKHVPDOOHURIWKHULVHDQGIDOO
GHOD\V
IURPBXVHU
DFFBDSSHQGBGHOD\VDQG
DFFBUHSODFHBGHOD\VVKDOOGHULYHWXUQRII
GHOD\VIURPXVHUVXSSOLHGDUJXPHQWV
DFF7R+L='HOD\
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQWKDWREWDLQVWKHORDGFDSDFLWDQFHRIDOOVFDODU
QHWV FRQQHFWHG WR WKH SRUWV LQ D PRGXOH7KLV DSSOLFDWLRQ XVHV DFFBFRQÀJXUH WR GLUHFW DFFBIHWFKBDWWULEXWH WR
UHWXUQ]HURLIDORDGFDSDFLWDQFHLVQRWIRXQGIRUDQHWDVDUHVXOWWKHWKLUGDUJXPHQWGHIDXOWBYDOXHFDQEHGURSSHG
IURPWKHFDOOWRDFFBIHWFKBDWWULEXWH
LQFOXGHDFFBXVHUK
GLVSOD\BORDGBFDSDFLWDQFH
^
KDQGOH
PRGXOHBKDQGOHSRUWBKDQGOHQHWBKDQGOH
GRXEOH
FDSBYDO
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
FRQILJXUHDFFBIHWFKBDWWULEXWHWRUHWXUQZKHQLWGRHVQRWILQG
WKHDWWULEXWH
DFFBFRQILJXUHDFF'HIDXOW$WWUWUXH
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
VFDQDOOSRUWVLQPRGXOHGLVSOD\ORDGFDSDFLWDQFH
SRUWBKDQGOH QXOO
ZKLOHSRUWBKDQGOH DFFBQH[WBSRUWPRGXOHBKDQGOHSRUWBKDQGOH
^
SRUWVDUHVFDODUVRSDVVQXOOWRJHWVLQJOHQHWFRQQHFWLRQ
QHWBKDQGOH DFFBQH[WBORFRQQSRUWBKDQGOHQXOO
VLQFHDFF'HIDXOW$WWULVWUXHGURSGHIDXOWBYDOXHDUJXPHQW
FDSBYDO DFFBIHWFKBDWWULEXWHQHWBKDQGOH/RDG&DSB
GHIDXOWBYDOXH
LIDFFBHUURUBIODJ
DUJXPHQWLVGURSSHG
LRBSULQWI/RDGFDSDFLWDQFHRIQHWG I?Q
DFFBIHWFKBLQGH[SRUWBKDQGOHFDSBYDO
`
`
DFFBFORVH
)LJXUH³8VLQJDFFBFRQÀJXUHWRVHWDFF'HIDXOW$WWU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQWKDWGLVSOD\VWKHQDPHRIDPRGXOHSDWK,WXVHV
DFFBFRQÀJXUH WR VHW DFF(QDEOH$UJV DQG WKHUHIRUH IRUFHV DFFBKDQGOHBPRGSDWK WR LJQRUH LWV QXOO QDPH
DUJXPHQWVDQGUHFRJQL]HLWVRSWLRQDOKDQGOHDUJXPHQWVVUFBKDQGOHDQGGVWBKDQGOH
LQFOXGHDFFBXVHUK
JHWBSDWK
^
KDQGOH
SDWKBKDQGOHPRGBKDQGOHVUFBKDQGOHGVWBKDQGOH
LQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VHWDFF(QDEOH$UJVIRUDFFBKDQGOHBPRGSDWK
DFFBFRQILJXUHDFF(QDEOH$UJVDFFBKDQGOHBPRGSDWK
JHWKDQGOHVWRWKHWKUHHV\VWHPWDVNDUJXPHQWV
DUJLVPRGXOHQDPH
DUJLVPRGXOHSDWKVRXUFH
DFFBKDQGOHBPRGSDWKXVHV
DUJLVPRGXOHSDWKGHVWLQDWLRQ
RSWLRQDOKDQGOHDUJXPHQWV
VUFBKDQGOHDQG
PRGBKDQGOH DFFBKDQGOHBWIDUJ
GVWBKDQGOHEHFDXVH
VUFBKDQGOH DFFBKDQGOHBWIDUJ
DFF(QDEOH$UJVLVVHW
GVWBKDQGOH DFFBKDQGOHBWIDUJ
DQG
WKHQDPHDUJXPHQWVDUHQXOO
GLVSOD\QDPHRIPRGXOHSDWK
SDWKBKDQGOH DFFBKDQGOHBPRGSDWKPRGBKDQGOH
QXOOQXOO
VUFBKDQGOHGVWBKDQGOH
LRBSULQWI3DWKLVV?QDFFBIHWFKBIXOOQDPHSDWKBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBFRQÀJXUHWRVHWDFF(QDEOH$UJV
7KHH[DPSOHVKRZQLQ)LJXUH IHWFKHVWKHULVHDQGIDOOGHOD\VRIHDFKSDWKLQDPRGXOHDQGEDFNDQQRWDWHVWKH
PD[LPXP GHOD\ YDOXH DV WKH GHOD\ IRU DOO WUDQVLWLRQV 7KH YDOXH RI DFF3DWK'HOD\&RXQW VSHFLÀHV WKH PLQLPXP
QXPEHU RI DUJXPHQWV WKDW KDYH WR EH SDVVHG WR URXWLQHV WKDW UHDG RU ZULWH GHOD\ YDOXHV %\ VHWWLQJ
DFF3DWK'HOD\&RXQW WR WKH PLQLPXP QXPEHU RI DUJXPHQWV QHHGHG IRU DFFBIHWFKBGHOD\V DQG DJDLQ IRU
DFFBUHSODFHBGHOD\VDOOXQXVHGDUJXPHQWVFDQEHHOLPLQDWHGIURPHDFKFDOO
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
LQFOXGHDFFBXVHUK
VHWBSDWKBGHOD\V
^
KDQGOH
PRGBKDQGOH
KDQGOH
SDWKBKDQGOH
GRXEOH
ULVHBGHOD\IDOOBGHOD\PD[BGHOD\
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHWRPRGXOH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
IHWFKULVHGHOD\VIRUDOOSDWKVLQPRGXOHWRSP
SDWKBKDQGOH QXOO
ZKLOHSDWKBKDQGOH DFFBQH[WBPRGSDWKPRGBKDQGOHSDWKBKDQGOH
^
FRQILJXUHDFF3DWK'HOD\&RXQWIRUULVHDQGIDOOGHOD\VRQO\
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
RQO\GHOD\
DFFBIHWFKBGHOD\VSDWKBKDQGOHULVHBGHOD\IDOOBGHOD\ DUJXPHQWVDUHQHHGHG
ILQGWKHPD[LPXPRIWKHULVHDQGIDOOGHOD\V
PD[BGHOD\ ULVHBGHOD\!IDOOBGHOD\"ULVHBGHOD\IDOOBGHOD\
FRQILJXUHDFF3DWK'HOD\&RXQWWRDSSO\RQHGHOD\IRUDOOWUDQVLWLRQV
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
DFFBUHSODFHBGHOD\VSDWKBKDQGOHPD[BGHOD\
`
`
DFFBFORVH
RQO\GHOD\
DUJXPHQWLVQHHGHG
)LJXUH³8VLQJDFFBFRQÀJXUHWRVHWDFF3DWK'HOD\&RXQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHH[DPSOHVKRZQLQ)LJXUHVKRZVKRZDFF7R+L='HOD\LVXVHGWRGLUHFWDFFBUHSODFHBGHOD\VWRGHULYHWKH
WXUQRIIGHOD\IRUD=VWDWHSULPLWLYHDXWRPDWLFDOO\DVWKHODUJHURILWVULVHDQGIDOOGHOD\V
LQFOXGHDFFBXVHUK
VHWBEXIBGHOD\V
^
KDQGOH
SULPLWLYHBKDQGOH
KDQGOH
SDWKBKDQGOH
GRXEOH
DGGHGBULVHDGGHGBIDOO
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
FRQILJXUHDFF7R+L='HOD\VRDFFBDSSHQGBGHOD\VGHULYHVWXUQRII
GHOD\IURPWKHVPDOOHURIWKHULVHDQGIDOOGHOD\V
DFFBFRQILJXUHDFF7R+L='HOD\PLQ
JHWKDQGOHWR=VWDWHSULPLWLYH
SULPLWLYHBKDQGOH DFFBKDQGOHBWIDUJ
JHWGHOD\YDOXHV
DGGHGBULVH WIBJHWUHDOS
DGGHGBIDOO WIBJHWUHDOS
DFFBDSSHQGBGHOD\VSULPLWLYHBKDQGOHDGGHGBULVHDGGHGBIDOO
`
DFFBFORVH
)LJXUH³8VLQJDFFBFRQÀJXUHWRVHWDFF7R+L='HOD\
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBFRXQW
DFFBFRXQW
6\QRSVLV
&RXQWWKHQXPEHURIREMHFWVUHODWHGWRDSDUWLFXODUUHIHUHQFHREMHFW
6\QWD[
DFFBFRXQWDFFBQH[WBURXWLQHBQDPHREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
1XPEHURIREMHFWV
7\SH
1DPH
'HVFULSWLRQ
SRLQWHUWRDQ
DFFBQH[WB
URXWLQH
DFFBQH[WBURXWLQHBQDPH
$FWXDOQDPHXQTXRWHGRIWKHDFFBQH[WBURXWLQHWKDWÀQGV
WKHREMHFWVWREHFRXQWHG
KDQGOH
REMHFWBKDQGOH
+DQGOHRIWKHUHIHUHQFHREMHFWIRUWKHDFFBQH[WBURXWLQH
$OODFFBQH[WBURXWLQHVH[FHSWDFFBQH[WBWRSPRG
7KH$&&URXWLQHDFFBFRXQWVKDOOÀQGWKHQXPEHURIREMHFWVWKDWH[LVWIRUDVSHFLÀFDFFBQH[WBURXWLQHZLWKDJLYHQ
UHIHUHQFHREMHFW7KHREMHFWDVVRFLDWHGZLWKREMHFWBKDQGOHVKDOOEHDYDOLGUHIHUHQFHREMHFWIRUWKHW\SHDFFBQH[WB
URXWLQHWREHFDOOHG
1RWHWKDWWKH$&&URXWLQHDFFBQH[WBWRSPRGGRHVQRWZRUNZLWKDFFBFRXQW+RZHYHUWRSOHYHOPRGXOHVFDQEH
FRXQWHGXVLQJDFFBQH[WBFKLOGZLWKDQXOOUHIHUHQFHREMHFWDUJXPHQW)RUH[DPSOH
DFFBFRXQWDFFBQH[WBFKLOGQXOO
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBFRXQWWRFRXQWWKHQXPEHURIQHWVLQDPRGXOH
LQFOXGHDFFBXVHUK
FRXQWBQHWV
^
KDQGOH
PRGXOHBKDQGOH
LQW
QXPEHUBRIBQHWV
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
FRXQWDQGGLVSOD\QXPEHURIQHWVLQWKHPRGXOH
QXPEHUBRIBQHWV DFFBFRXQWDFFBQH[WBQHWPRGXOHBKDQGOH
LRBSULQWIQXPEHURIQHWV G?QQXPEHUBRIBQHWV
`
DFFBFORVH
)LJXUH³8VLQJDFFBFRXQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBDUJF
DFFBIHWFKBDUJF
6\QRSVLV
*HWWKHQXPEHURIFRPPDQGOLQHDUJXPHQWVVXSSOLHGZLWKD9HULORJVRIWZDUHWRROLQYRFDWLRQ
6\QWD[
DFFBIHWFKBDUJF
7\SH
5HWXUQV
LQW
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
1XPEHURIFRPPDQGOLQHDUJXPHQWV
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBIHWFKBDUJYWRJHWDFKDUDFWHUVWULQJDUUD\RIWKHLQYRFDWLRQRSWLRQV
7KH$&&URXWLQHDFFBIHWFKBDUJFVKDOOREWDLQWKHQXPEHURIFRPPDQGOLQHDUJXPHQWVJLYHQRQD9HULORJVRIWZDUH
SURGXFWLQYRFDWLRQFRPPDQGOLQH
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBIHWFKBDUJFWRGHWHUPLQHWKHQXPEHURILQYRFDWLRQDUJXPHQWVXVHG
LQFOXGHDFFBXVHUK
LQFOXGHVWULQJK!VWULQJKLVLPSOHPHQWDWLRQGHSHQGHQW
FKDUP\BVFDQBSOXVDUJVVWU
FKDUVWU
^
LQWL
LQWOHQJWK VWUOHQVWU
FKDUFXU6WU
FKDUDUJY DFFBIHWFKBDUJY
IRUL DFFBIHWFKBDUJFL!L
^
FXU6WU DUJY>L@
LIFXU6WU>@ ··VWUQFPSFXU6WUVWUOHQJWK
^
FKDUUHW9DO
OHQJWK VWUOHQFXU6WU>OHQJWK@
UHW9DO FKDUPDOORFVL]HRIFKDUOHQJWK
VWUFS\UHW9DOFXU6WU>OHQJWK@
UHWXUQUHW9DO
`
`
UHWXUQQXOO
`
)LJXUH³8VLQJDFFBIHWFKBDUJF
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBDUJY
DFFBIHWFKBDUJY
6\QRSVLV
*HWDQDUUD\RIFKDUDFWHUSRLQWHUVWKDWPDNHXSWKHFRPPDQGOLQHDUJXPHQWVIRUD9HULORJVRIWZDUHSURGXFW
LQYRFDWLRQ
6\QWD[
DFFBIHWFKBDUJY
7\SH
5HWXUQV
FKDU
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
$QDUUD\RIFKDUDFWHUSRLQWHUVWKDWPDNHXSWKHFRPPDQGOLQHDUJXPHQWV
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBIHWFKBDUJFWRJHWDFRXQWRIWKHQXPEHURILQYRFDWLRQDUJXPHQWV
7KH $&& URXWLQH DFFBIHWFKBDUJY VKDOO REWDLQ DQ DUUD\ RI FKDUDFWHU SRLQWHUV WKDW PDNH XS WKH FRPPDQGOLQH
DUJXPHQWV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBIHWFKBDUJYWRUHWULHYHWKHLQYRFDWLRQDUJXPHQWVXVHG
LQFOXGHDFFBXVHUK
LQFOXGHVWULQJK!VWULQJKLVLPSOHPHQWDWLRQGHSHQGHQW
FKDUP\BVFDQBSOXVDUJVVWU
FKDUVWU
^
LQWL
LQWOHQJWK VWUOHQVWU
FKDUFXU6WU
FKDUDUJY DFFBIHWFKBDUJY
IRUL DFFBIHWFKBDUJFL!L
^
FXU6WU DUJY>L@
LIFXU6WU>@ ··VWUQFPSFXU6WUVWUOHQJWK
^
FKDUUHW9DO
OHQJWK VWUOHQFXU6WU>OHQJWK@
UHW9DO FKDUPDOORFVL]HRIFKDUOHQJWK
VWUFS\UHW9DOFXU6WU>OHQJWK@
UHWXUQUHW9DO
`
`
UHWXUQQXOO
`
)LJXUH³8VLQJDFFBIHWFKBDUJY
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBDWWULEXWH
DFFBIHWFKBDWWULEXWH
6\QRSVLV
*HWWKHYDOXHRIDSDUDPHWHURUVSHFSDUDPQDPHGDVDQDWWULEXWHLQWKH9HULORJVRXUFHGHVFULSWLRQ
6\QWD[
DFFBIHWFKBDWWULEXWHREMHFWBKDQGOHDWWULEXWHBVWULQJGHIDXOWBYDOXH
7\SH
5HWXUQV
'HVFULSWLRQ
GRXEOH
$UJXPHQWV
2SWLRQDO
5HODWHG
URXWLQHV
9DOXHRIWKHSDUDPHWHURIVSHFSDUDP
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDQDPHGREMHFW
TXRWHGVWULQJRU
FKDU
DWWULEXWHBVWULQJ
/LWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKWKHDWWULEXWH
SRUWLRQRIWKHSDUDPHWHURUVSHFSDUDPGHFODUDWLRQ
GRXEOH
GHIDXOWBYDOXH
'RXEOHSUHFLVLRQYDOXHWREHUHWXUQHGLIWKHDWWULEXWHLVQRW
IRXQGGHSHQGVRQDFF'HIDXOW$WWU
8VHDFFBIHWFKBDWWULEXWHBLQWWRJHWDQDWWULEXWHYDOXHDVDQLQWHJHU
8VHDFFBIHWFKBDWWULEXWHBVWUWRJHWDQDWWULEXWHYDOXHDVDVWULQJ
8VHDFFBFRQÀJXUHDFF'HIDXOW$WWUWRVHWGHIDXOWYDOXHUHWXUQHGZKHQDWWULEXWHLVQRWIRXQG
8VHDFFBIHWFKBSDUDPW\SHWRGDWDW\SHRIWKHSDUDPHWHUYDOXH
8VHDFFBIHWFKBSDUDPYDOWRJHWSDUDPHWHUVRUVSHFSDUDPYDOXHVQRWGHFODUHGLQDWWULEXWHREMHFWIRUPDW
7KH$&& URXWLQH DFFBIHWFKBDWWULEXWH VKDOO REWDLQ WKH YDOXH RI D SDUDPHWHU RU VSHFSDUDP WKDW LV GHFODUHG DV DQ
DWWULEXWHLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ7KHYDOXHVKDOOEHUHWXUQHGDVDGRXEOH
$Q\SDUDPHWHURUVSHFSDUDPFDQEHDQDWWULEXWHE\QDPLQJLWLQRQHRIWKHIROORZLQJZD\V
³ $VDJHQHUDODWWULEXWHDVVRFLDWHGZLWKPRUHWKDQRQHREMHFWLQWKHPRGXOHZKHUHWKHSDUDPHWHURUVSHFSDUDP
DWWULEXWHLVGHFODUHG
³ $VDVSHFLÀFDWWULEXWHDVVRFLDWHGZLWKDSDUWLFXODUREMHFWLQWKHPRGXOHZKHUHWKHSDUDPHWHURUVSHFSDUDP
DWWULEXWHLVGHFODUHG
(DFK RI WKHVH PHWKRGV XVHV LWV RZQ QDPLQJ FRQYHQWLRQ DV GHVFULEHG LQ 7DEOH )RU HLWKHU FRQYHQWLRQ
DWWULEXWHBVWULQJVKDOOQDPHWKHDWWULEXWHDQGVKDOOEHSDVVHGDVWKHVHFRQGDUJXPHQWWRDFFBIHWFKBDWWULEXWH7KH
REMHFWBQDPHVKDOOEHWKHDFWXDOQDPHRIDGHVLJQREMHFWLQD9HULORJ+'/VRXUFHGHVFULSWLRQ
7DEOH³1DPLQJFRQYHQWLRQVIRUDWWULEXWHV
)RU
$JHQHUDODWWULEXWH
$VSHFLÀFDWWULEXWH
DVVRFLDWHGZLWKD
SDUWLFXODUREMHFW
1DPLQJFRQYHQWLRQ
([DPSOH
DWWULEXWHBVWULQJ
VSHFSDUDP'ULYH6WUHQJWK $PQHPRQLFQDPHWKDWGHVFULEHV
WKHDWWULEXWH
DWWULEXWHBVWULQJ³REMHFWBQDPH
&RQFDWHQDWHDPQHPRQLFQDPHWKDW
GHVFULEHVWKHDWWULEXWHZLWKWKHQDPH
RIWKHREMHFW
DWWULEXWHBVWULQJLV'ULYH6WUHQJWK
VSHFSDUDP'ULYH6WUHQJWKJ DWWULEXWHBVWULQJLV'ULYH6WUHQJWK
REMHFWBQDPHLVJ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KH$&&URXWLQHDFFBIHWFKBDWWULEXWHVKDOOLGHQWLI\PRGXOHSDWKVLQWHUPVRIWKHLUVRXUFHVDQGGHVWLQDWLRQVLQWKH
IROORZLQJIRUPDW
VRXUFH
SDWKBGHOLPLWHU
GHVWLQDWLRQ
7KH DFFBIHWFKBDWWULEXWH URXWLQH VKDOO ORRN IRU PRGXOH SDWK QDPHV LQ WKLV IRUPDW DQG DFFBIHWFKBQDPH DQG
DFFBIHWFKBIXOOQDPH VKDOO UHWXUQ QDPHV RI PRGXOH SDWKV LQ WKLV IRUPDW7KHUHIRUH WKH VDPH QDPLQJ FRQYHQWLRQ
VKRXOGEHXVHGZKHQDVVRFLDWLQJDQDWWULEXWHZLWKDPRGXOHSDWK1RWHWKDWQDPHVRIPRGXOHSDWKVZLWKPXOWLSOH
VRXUFHVRUGHVWLQDWLRQVVKDOOEHGHULYHGIURPWKHÀUVWVRXUFHRUGHVWLQDWLRQRQO\
%\GHIDXOWWKHSDWKBGHOLPLWHUXVHGLQSDWKQDPHVLVWKH´µFKDUDFWHU7KLVGHIDXOWFDQEHFKDQJHGE\XVLQJWKH$&&
URXWLQHDFFBFRQÀJXUHWRVHWWKHGHOLPLWHUSDUDPHWHUDFF3DWK'HOLP6WUWRDQRWKHUFKDUDFWHUVWULQJ
7KHH[DPSOHVLQ7DEOHVKRZKRZWRQDPHPRGXOHSDWKVXVLQJGLIIHUHQWGHOLPLWHUVWULQJV
7DEOH³([DPSOHPRGXOHSDWKQDPHVXVLQJGHOLPLWHUVWULQJV
)RUPRGXOHSDWK
,IDFF3DWK'HOLP6WULV
7KHQWKHPRGXOHSDWKQDPHLV
D !T DT
E!TT BB
EBBT
GHI!UV B
GBU
7KHIROORZLQJH[DPSOHVKRZVDQDWWULEXWHQDPHIRUDSDUWLFXODUPRGXOHSDWKREMHFW
*LYHQWKHPRGXOHSDWK
D !T $QDWWULEXWHQDPHLV
VSHFSDUDP5LVH6WUHQJWKDT ,QWKLVH[DPSOHWKHDWWULEXWHBVWULQJLV5LVH6WUHQJWKWKHREMHFWBQDPHLVDTDQGWKHSDWKBGHOLPLWHULVWKH
GHIDXOWSDWKGHOLPLWHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHIROORZLQJÁRZFKDUWLOOXVWUDWHVKRZDFFBIHWFKBDWWULEXWHVKDOOZRUN
VHDUFKIRUDWWULEXWH
DVVRFLDWHGZLWK
VSHFLILHGREMHFW
\HV
IRXQG"
UHWXUQDWWULEXWH·VYDOXH
DVDGRXEOHSUHFLVLRQ
IORDWLQJSRLQWQXPEHU
QR
VHDUFKIRUDWWULEXWH
ZLWKRXWDQDVVRFLDWHG
REMHFW
\HV
IRXQG"
QR
UHWXUQGHIDXOWYDOXH
7KLV ÁRZFKDUW VKRZV WKDW ZKHQ DFFBIHWFKBDWWULEXWH ÀQGV WKH DWWULEXWH UHTXHVWHG LW UHWXUQV WKH YDOXH RI WKH
DWWULEXWHDVDGRXEOHSUHFLVLRQÁRDWLQJSRLQWQXPEHU
7KHURXWLQHVKDOOÀUVWORRNIRUWKHDWWULEXWHQDPHWKDWFRQFDWHQDWHVDWWULEXWHBVWULQJZLWKWKHQDPHDVVRFLDWHG
ZLWK REMHFWBKDQGOH )RU H[DPSOH WR ÀQG DQ DWWULEXWH ,QSXW/RDG IRU D QHW Q DFFBIHWFKBDWWULEXWH
ZRXOGVHDUFKIRU,QSXW/RDGQ
,IDFFBIHWFKBDWWULEXWHGRHVQRWÀQGWKHDWWULEXWHDVVRFLDWHGZLWKWKHREMHFWVSHFLÀHGZLWKREMHFWBKDQGOH
WKHURXWLQHVKDOOWKHQVHDUFKIRUDQDPHWKDWPDWFKHVDWWULEXWHBVWULQJ$VVXPHWKDWLQWKHSUHYLRXVH[DPSOH
DFFBIHWFKBDWWULEXWHGRHVQRWÀQG,QSXW/RDGQ,WZRXOGWKHQORRNIRU,QSXW/RDG2WKHUYDULDQWV
RIWKDWQDPHVXFKDV,QSXW/RDGQRU,QSXW/RDGQVKDOOQRWEHFRQVLGHUHGPDWFKHV
)DLOLQJERWKVHDUFKDWWHPSWVWKHURXWLQHDFFBIHWFKBDWWULEXWHVKDOOUHWXUQDGHIDXOWYDOXH7KHGHIDXOWYDOXH
LV FRQWUROOHG E\ XVLQJ WKH $&& URXWLQH DFFBFRQÀJXUH WR VHW RU UHVHW WKH FRQÀJXUDWLRQ SDUDPHWHU
DFF'HIDXOW$WWUDVVKRZQLQ7DEOH
7DEOH³&RQWUROOLQJWKHGHIDXOWYDOXHUHWXUQHGE\DFFBIHWFKBDWWULEXWH
:KHQDFF'HIDXOW$WWULV
DFFBIHWFKBDWWULEXWHVKDOOUHWXUQ
WUXH
=HURZKHQWKHDWWULEXWHLVQRWIRXQGWKH
GHIDXOWBYDOXHDUJXPHQWFDQEHGURSSHG
IDOVH
7KHYDOXHSDVVHGDVWKHGHIDXOWBYDOXHDUJXPHQW
ZKHQWKHDWWULEXWHLVQRWIRXQG
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQWKDWXVHVDFFBIHWFKBDWWULEXWHWRREWDLQWKH
ORDG FDSDFLWDQFH RI DOO VFDODU QHWV FRQQHFWHG WR WKH SRUWV LQ D PRGXOH 1RWH WKDW DFFBIHWFKBDWWULEXWH GRHV QRW
UHTXLUHLWVWKLUGDUJXPHQWGHIDXOWBYDOXHEHFDXVHDFFBFRQÀJXUHLVXVHGWRVHWDFF'HIDXOW$WWUWRWUXH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHDFFBXVHUK
GLVSOD\BORDGBFDSDFLWDQFH
^
KDQGOH
PRGXOHBKDQGOHSRUWBKDQGOHQHWBKDQGOH
GRXEOH
FDSBYDO
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
FRQILJXUHDFFBIHWFKBDWWULEXWHWRUHWXUQZKHQLWGRHVQRWILQG
WKHDWWULEXWH
DFFBFRQILJXUHDFF'HIDXOW$WWUWUXH
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
VFDQDOOSRUWVLQPRGXOHGLVSOD\ORDGFDSDFLWDQFH
SRUWBKDQGOH QXOO
ZKLOHSRUWBKDQGOH DFFBQH[WBSRUWPRGXOHBKDQGOHSRUWBKDQGOH
^
SRUWVDUHVFDODUVRSDVVQXOOWRJHWVLQJOHQHWFRQQHFWLRQ
QHWBKDQGOH DFFBQH[WBORFRQQSRUWBKDQGOHQXOO
VLQFHDFF'HIDXOW$WWULVWUXHGURSGHIDXOWBYDOXHDUJXPHQW
FDSBYDO DFFBIHWFKBDWWULEXWHQHWBKDQGOH/RDG&DSB
LIDFFBHUURUBIODJ
LRBSULQWI/RDGFDSDFLWDQFHRIQHWG I?Q
DFFBIHWFKBLQGH[SRUWBKDQGOHFDSBYDO
`
`
DFFBFORVH
6HFWLRQ
)LJXUH³8VLQJDFFBIHWFKBDWWULEXWH
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBDWWULEXWHBLQW
DFFBIHWFKBDWWULEXWHBLQW
6\QRSVLV
*HWWKHLQWHJHUYDOXHRIDSDUDPHWHURUVSHFSDUDPQDPHGDVDQDWWULEXWHLQWKH9HULORJVRXUFHGHVFULSWLRQ
6\QWD[
DFFBIHWFKBDWWULEXWHBLQWREMHFWBKDQGOHDWWULEXWHBVWULQJGHIDXOWBYDOXH
7\SH
5HWXUQV
$UJXPHQWV
2SWLRQDO
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
9DOXHRIWKHSDUDPHWHURIVSHFSDUDP
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDQDPHGREMHFW
TXRWHGVWULQJRU
FKDU
DWWULEXWHBVWULQJ
/LWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKWKHDWWULEXWH
SRUWLRQRIWKHSDUDPHWHURUVSHFSDUDPGHFODUDWLRQ
LQW
GHIDXOWBYDOXH
,QWHJHUYDOXHWREHUHWXUQHGLIWKHDWWULEXWHLVQRWIRXQG
GHSHQGVRQDFF'HIDXOW$WWU
8VHDFFBIHWFKBDWWULEXWHWRJHWDQDWWULEXWHYDOXHDVDGRXEOH
8VHDFFBIHWFKBDWWULEXWHBVWUWRJHWDQDWWULEXWHYDOXHDVDVWULQJ
8VHDFFBFRQÀJXUHDFF'HIDXOW$WWUWRVHWGHIDXOWYDOXHUHWXUQHGZKHQDWWULEXWHLVQRWIRXQG
8VHDFFBIHWFKBSDUDPW\SHWRJHWWKHGDWDW\SHRIWKHSDUDPHWHUYDOXH
8VHDFFBIHWFKBSDUDPYDOWRJHWSDUDPHWHUVRUVSHFSDUDPYDOXHVQRWGHFODUHGLQDWWULEXWHREMHFWIRUPDW
7KH$&&URXWLQHDFFBIHWFKBDWWULEXWHBLQWVKDOOREWDLQWKHYDOXHRIDSDUDPHWHURUVSHFSDUDPWKDWLVGHFODUHGDVDQ
DWWULEXWHLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ7KHYDOXHVKDOOEHUHWXUQHGDVDQLQWHJHU
$Q\ SDUDPHWHU RU VSHFSDUDP FDQ EH DQ DWWULEXWH 5HIHU WR IRU D GHVFULSWLRQ RI DWWULEXWH QDPLQJ DQG KRZ
DWWULEXWHYDOXHVDUHIHWFKHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBDWWULEXWHBVWU
DFFBIHWFKBDWWULEXWHBVWU
6\QRSVLV
*HWWKHLQWHJHUYDOXHRIDSDUDPHWHURUVSHFSDUDPQDPHGDVDQDWWULEXWHLQWKH9HULORJVRXUFHGHVFULSWLRQ
6\QWD[
DFFBIHWFKBDWWULEXWHBVWUREMHFWBKDQGOHDWWULEXWHBVWULQJGHIDXOWBYDOXH
7\SH
5HWXUQV
$UJXPHQWV
2SWLRQDO
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
9DOXHRIWKHSDUDPHWHURIVSHFSDUDP
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDQDPHGREMHFW
TXRWHGVWULQJRU
FKDU
DWWULEXWHBVWULQJ
/LWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKWKHDWWULEXWH
SRUWLRQRIWKHSDUDPHWHURUVSHFSDUDPGHFODUDWLRQ
TXRWHGVWULQJRU
FKDU
GHIDXOWBYDOXH
&KDUDFWHUVWULQJYDOXHWREHUHWXUQHGLIWKHDWWULEXWHLVQRW
IRXQGGHSHQGVRQDFF'HIDXOW$WWU
8VHDFFBIHWFKBDWWULEXWHWRJHWDQDWWULEXWHYDOXHDVDGRXEOH
8VHDFFBIHWFKBDWWULEXWHBLQWWRJHWDQDWWULEXWHYDOXHDVDQLQWHJHU
8VHDFFBFRQÀJXUHDFF'HIDXOW$WWUWRVHWGHIDXOWYDOXHUHWXUQHGZKHQDWWULEXWHLVQRWIRXQG
8VHDFFBIHWFKBSDUDPW\SHWRJHWWKHGDWDW\SHRIWKHSDUDPHWHUYDOXH
8VHDFFBIHWFKBSDUDPYDOWRJHWSDUDPHWHUVRUVSHFSDUDPYDOXHVQRWGHFODUHGLQDWWULEXWHREMHFWIRUPDW
7KH$&&URXWLQHDFFBIHWFKBDWWULEXWHBVWUVKDOOREWDLQWKHYDOXHRIDSDUDPHWHURUVSHFSDUDPWKDWLVGHFODUHGDVDQ
DWWULEXWHLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ7KHYDOXHVKDOOEHUHWXUQHGDVDSRLQWHUWRDFKDUDFWHUVWULQJ7KH
UHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH$&&LQWHUQDOVWULQJEXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ$&&
URXWLQHV
$Q\ SDUDPHWHU RU VSHFSDUDP FDQ EH DQ DWWULEXWH 5HIHU WR IRU D GHVFULSWLRQ RI DWWULEXWH QDPLQJ DQG KRZ
DWWULEXWHYDOXHVDUHIHWFKHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBGHIQDPH
DFFBIHWFKBGHIQDPH
6\QRSVLV
*HWWKHGHÀQLWLRQQDPHRIDPRGXOHLQVWDQFHRUSULPLWLYHLQVWDQFH
6\QWD[
DFFBIHWFKBGHIQDPHREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
FKDU
3RLQWHUWRDFKDUDFWHUVWULQJFRQWDLQLQJWKHGHÀQLWLRQQDPH
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHPRGXOHLQVWDQFHRUSULPLWLYHLQVWDQFH
8VHDFFBIHWFKBQDPHWRGLVSOD\WKHLQVWDQFHQDPHRIDQREMHFW
7KH$&&URXWLQHDFFBIHWFKBGHIQDPHVKDOOREWDLQWKHGHÀQLWLRQQDPHRIDPRGXOHLQVWDQFHRUSULPLWLYHLQVWDQFH
7KH GHÀQLWLRQ QDPH LV WKH GHFODUHG QDPH RI WKH REMHFW DV RSSRVHG WR WKH LQVWDQFH QDPH RI WKH REMHFW ,Q WKH
LOOXVWUDWLRQVKRZQEHORZWKHGHÀQLWLRQQDPHLV´GIIµDQGWKHLQVWDQFHQDPHLV´Lµ
GHILQLWLRQQDPH
GIILTFONGLQVWDQFHRIDPRGXOHRUSULPLWLYH
LQVWDQFHQDPH
7KHUHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH$&&LQWHUQDOVWULQJEXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ$&&
URXWLQHV
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQWKDWXVHVDFFBIHWFKBGHIQDPHWRGLVSOD\WKH
GHÀQLWLRQQDPHVRIDOOSULPLWLYHVLQDPRGXOH
LQFOXGHDFFBXVHUK
JHWBSULPLWLYHBGHILQLWLRQVPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH
SULPBKDQGOH
`
JHWDQGGLVSOD\GHILQLQJQDPHVRIDOOSULPLWLYHVLQWKHPRGXOH
SULPBKDQGOH QXOO
ZKLOHSULPBKDQGOH DFFBQH[WBSULPLWLYHPRGXOHBKDQGOHSULPBKDQGOH
LRBSULQWISULPLWLYHGHILQLWLRQLVV?Q
DFFBIHWFKBGHIQDPHSULPBKDQGOH
)LJXUH³8VLQJDFFBIHWFKBGHIQDPH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBGHOD\BPRGH
DFFBIHWFKBGHOD\BPRGH
6\QRSVLV
*HWWKHGHOD\PRGHRIDPRGXOHLQVWDQFH
6\QWD[
DFFBIHWFKBGHOD\BPRGHPRGXOHBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
LQW
'HVFULSWLRQ
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHGHOD\PRGHRIWKHPRGXOHLQVWDQFH
DFF'HOD\0RGH1RQH
DFF'HOD\0RGH=HUR
DFF'HOD\0RGH8QLW
DFF'HOD\0RGH3DWK
DFF'HOD\0RGH'LVWULE
DFF'HOD\0RGH070
7\SH
1DPH
KDQGOH
PRGXOHBKDQGOH
'HVFULSWLRQ
+DQGOHWRDPRGXOHLQVWDQFH
7KH$&&URXWLQHDFFBIHWFKBGHOD\BPRGHVKDOOUHWXUQWKHGHOD\PRGHRIDPRGXOHRUFHOOLQVWDQFH7KHGHOD\PRGH
GHWHUPLQHVKRZGHOD\VDUHVWRUHGIRUSULPLWLYHVDQGSDWKVZLWKLQWKHPRGXOHRUFHOO7KHURXWLQHVKDOOUHWXUQRQHRI
WKHSUHGHÀQHGFRQVWDQWVJLYHQLQ7DEOH
7DEOH³3UHGHÀQHGFRQVWDQWVXVHGE\DFFBIHWFKBGHOD\BPRGH
3UHGHÀQHGFRQVWDQW
6HFWLRQ
'HVFULSWLRQ
DFF'HOD\0RGH1RQH
1RGHOD\PRGHVSHFLÀHG
DFF'HOD\0RGH=HUR
$OOSULPLWLYHGHOD\VDUH]HURDOOSDWKGHOD\VDUHLJQRUHG
DFF'HOD\0RGH8QLW
$OOSULPLWLYHGHOD\VDUHRQHDOOSDWKGHOD\VDUHLJQRUHG
DFF'HOD\0RGH'LVWULE
,IDORJLFDOSDWKKDVERWKSULPLWLYHGHOD\VDQGSDWK
GHOD\VVSHFLÀHGWKHSULPLWLYHGHOD\VVKDOOEHXVHG
DFF'HOD\0RGH3DWK
,IDORJLFDOSDWKKDVERWKSULPLWLYHGHOD\VDQGSDWK
GHOD\VVSHFLÀHGWKHSDWKGHOD\VVKDOOEHXVHG
DFF'HOD\0RGH070
,IWKLVSURSHUW\LVWUXH0LQLPXP7\SLFDO0D[LPXP
GHOD\VHWVIRUHDFKWUDQVLWLRQDUHEHLQJVWRUHGLIWKLV
SURSHUW\LVIDOVHDVLQJOHGHOD\IRUHDFKWUDQVLWLRQLV
EHLQJVWRUHG
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
)LJXUHXVHVDFFBIHWFKBGHOD\BPRGHWRUHWULHYHWKHGHOD\PRGHRIDOOFKLOGUHQRIDVSHFLÀHGPRGXOH
LQFOXGHDFFBXVHUK
GLVSOD\BGHOD\BPRGH
^
KDQGOH
PRGFKLOG
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWPRGXOHSDVVHGWRXVHUGHILQHGV\VWHPWDVN
PRG DFFBKDQGOHBWIDUJ
`
ILQGDQGGLVSOD\GHOD\PRGHIRUHDFKPRGXOHLQVWDQFH
FKLOG QXOO
ZKLOHFKLOG DFFBQH[WBFKLOGPRGFKLOG
^
LRBSULQWI0RGXOHVVHWWRDFFBIHWFKBIXOOQDPHFKLOG
VZLWFKDFFBIHWFKBGHOD\BPRGHFKLOG
^
FDVHDFF'HOD\0RGH3DWK
LRBSULQWISDWKGHOD\PRGH?Q
EUHDN
FDVHDFF'HOD\0RGH'LVWULE
LRBSULQWIGLVWULEXWHGGHOD\PRGH?Q
EUHDN
`
`
)LJXUH³8VLQJDFFBIHWFKBGHOD\BPRGH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBGHOD\V
DFFBIHWFKBGHOD\VIRUVLQJOHGHOD\YDOXHVDFF0LQ7\S0D['HOD\VVHWWRIDOVH
6\QRSVLV
*HWH[LVWLQJGHOD\VIRUSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVPRGXOHLQSXWSRUWVDQGLQWHUPRGXOH
SDWKV
6\QWD[
3ULPLWLYHV
3RUWV
3RUWELWV
,QWHUPRGXOHSDWKV
DFFBIHWFKBGHOD\VREMHFWBKDQGOHULVHBGHOD\IDOOBGHOD\]BGHOD\
0RGXOHSDWKV
DFFBIHWFKBGHOD\VREMHFWBKDQGOH
GGGGGGGGGGGG
7LPLQJFKHFNV
DFFBIHWFKBGHOD\VREMHFWBFKHFNBKDQGOHOLPLW
7\SH
5HWXUQV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
GRXEOH
ULVHBGHOD\
IDOOBGHOD\
5LVHDQGIDOOGHOD\IRUVWDWHSULPLWLYHVWDWHSULPLWLYH
PRGXOHLQSXWSRUWPRGXOHLQSXWSRUWELWRULQWHUPRGXOHSDWK
GRXEOH
]BGHOD\
7XUQRIIWR=WUDQVLWLRQGHOD\IRUVWDWHSULPLWLYHVPRGXOH
LQSXWSRUWVPRGXOHLQSXWSRUWELWVRULQWHUPRGXOHSDWKV
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR
GHOD\IRUDOOWUDQVLWLRQVIRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
ULVHWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
IDOOWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR
WXUQRIIWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
G
G
,IDFF3DWK'HOD\&RXQWLVVHWWRRU
GLV=!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV=!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
G
G
G
G
G
,IDFF3DWK'HOD\&RXQWLVVHWWR
GLV!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV=!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GRXEOH
OLPLW
/LPLWRIWLPLQJFKHFN
$UJXPHQWV
&RQGLWLRQDO
6HFWLRQ
'HVFULSWLRQ
+DQGOHRIDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNPRGXOH
LQSXWSRUWELWRIDPRGXOHLQSXWSRUWRULQWHUPRGXOHSDWK
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBGHOD\VIRUPLQW\SPD[GHOD\VDFF0LQ7\S0D['HOD\VVHWWRWUXH
6\QRSVLV
*HWH[LVWLQJGHOD\YDOXHVIRUSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVPRGXOHLQSXWSRUWVRULQWHUPRG
XOHSDWKVWKHGHOD\YDOXHVDUHFRQWDLQHGLQDQDUUD\
6\QWD[
DFFBDSSHQGBGHOD\VREMHFWBKDQGOHDUUD\BSWU
7\SH
5HWXUQV
$UJXPHQWV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNPRGXOH
LQSXWSRUWELWRIDPRGXOHLQSXWSRUWRULQWHUPRGXOHSDWK
GRXEOHDGGUHVV
DUUD\BSWU
3RLQWHUWRDUUD\RIPLQW\SPD[GHOD\YDOXHV
WKHVL]HRIWKHDUUD\GHSHQGVRQWKHW\SHRIREMHFWDQGWKH
VHWWLQJRIDFF3DWK'HOD\&RXQWVHH
7KH $&& URXWLQH DFFBIHWFKBGHOD\V VKDOO ZRUN GLIIHUHQWO\ GHSHQGLQJ RQ KRZ WKH FRQÀJXUDWLRQ SDUDPHWHU
DFF0LQ7\S0D['HOD\V LV VHW :KHQ WKLV SDUDPHWHU LV VHW WR ´IDOVHµ D VLQJOH GHOD\ SHU WUDQVLWLRQ VKDOO EH
DVVXPHG DQG HDFK GHOD\ VKDOO EH IHWFKHG LQWR YDULDEOHV SRLQWHG WR DV LQGLYLGXDO DUJXPHQWV )RU WKLV VLQJOH GHOD\
PRGHWKHÀUVWV\QWD[WDEOHLQWKLVFODXVHVKDOODSSO\
:KHQ DFF0LQ7\S0D['HOD\V LV VHW WR ´WUXHµ DFFBIHWFKBGHOD\V VKDOO IHWFK RQH RU PRUH VHWV RI
PLQLPXPW\SLFDOPD[LPXPGHOD\VLQWRDQDUUD\UDWKHUWKDQVLQJOHGHOD\VIHWFKHGDVLQGLYLGXDODUJXPHQWV)RUWKLV
PLQW\SPD[GHOD\PRGHWKHVHFRQGV\QWD[WDEOHLQWKLVFODXVHVKDOODSSO\
7KH QXPEHU GHOD\ YDOXHV WKDW VKDOO EH IHWFKHG E\DFFBIHWFKBGHOD\V LV GHWHUPLQHG E\ WKH W\SH RI REMHFW DQG WKH
VHWWLQJRIFRQÀJXUDWLRQSDUDPHWHUV5HIHUWRIRUDGHVFULSWLRQRIKRZWKHQXPEHURIGHOD\YDOXHVDUHGHWHUPLQHG
7KH $&& URXWLQH DFFBIHWFKBGHOD\V VKDOO UHWULHYH GHOD\V LQ WKH WLPHVFDOH RI WKH PRGXOH WKDW FRQWDLQV WKH
REMHFWBKDQGOH
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQWKDWXVHVDFFBIHWFKBGHOD\VWRUHWULHYHWKH
ULVHIDOODQGWXUQRIIGHOD\VRIDOOSDWKVWKURXJKDPRGXOH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHDFFBXVHUK
GLVSOD\BSDWKBGHOD\V
^
KDQGOH
PRGBKDQGOH
KDQGOH
SDWKBKDQGOH
GRXEOH
ULVHBGHOD\IDOOBGHOD\WR]BGHOD\
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VHWDFF3DWK'HOD\&RXQWWRUHWXUQULVHIDOODQGWXUQRIIGHOD\V
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
JHWKDQGOHWRPRGXOH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
`
IHWFKULVHGHOD\VIRUDOOSDWKVLQPRGXOHWRSP
SDWKBKDQGOH QXOO
ZKLOHSDWKBKDQGOH DFFBQH[WBPRGSDWKPRGBKDQGOHSDWKBKDQGOH
^
DFFBIHWFKBGHOD\VSDWKBKDQGOH
ULVHBGHOD\IDOOBGHOD\WR]BGHOD\
GLVSOD\ULVHIDOODQGWXUQRIIGHOD\VIRUHDFKSDWK
LRBSULQWI)RUPRGXOHSDWKVGHOD\VDUH?Q
DFFBIHWFKBIXOOQDPHSDWKBKDQGOH
LRBSULQWIULVH OIIDOO OIWXUQRII OI?Q
ULVHBGHOD\IDOOBGHOD\WR]BGHOD\
`
DFFBFORVH
)LJXUH³8VLQJDFFBIHWFKBGHOD\VLQVLQJOHGHOD\PRGH
7KH H[DPSOH VKRZQ LQ )LJXUH LV D &ODQJXDJH FRGH IUDJPHQW RI DQ DSSOLFDWLRQ WKDW VKRZV KRZ WR IHWFK
PLQW\SPD[GHOD\VIRUWKHLQWHUPRGXOHSDWKV7KHH[DPSOHIROORZVWKHVHVWHSV
D
'HFODUHV DQ DUUD\ RI QLQH GRXEOHSUHFLVLRQ ÁRDWLQJSRLQW YDOXHV DV D EXIIHU IRU VWRULQJ WKUHH VHWV RI
PLQW\SPD[YDOXHVRQHVHWHDFKIRUULVHIDOODQGWXUQRIIGHOD\V
E
6HWV WKH FRQÀJXUDWLRQ SDUDPHWHU DFF0LQ7\S0D['HOD\V WR ´WUXHµ WR LQVWUXFW DFFBIHWFKBGHOD\V WR
UHWULHYHGHOD\VLQPLQW\SPD[IRUPDW
F
&DOOVDFFBIHWFKBGHOD\VZLWKDYDOLGLQWHUPRGXOHSDWKKDQGOHDQGWKHDUUD\SRLQWHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
IHWFKBPLQW\SPD[BGHOD\VSRUWBRXWSXWSRUWBLQSXW
KDQGOHSRUWBRXWSXWSRUWBLQSXW
^
KDQGOH
LQWHUPRGBSDWK
GRXEOH
GHOD\BDUUD\>@
DFFBKDQGOHBSDWK
UHWXUQVDKDQGOHWRDZLUH
SDWKWKDWUHSUHVHQWVWKH
FRQQHFWLRQIURPDQRXWSXW
RULQRXWSRUWWRDQLQSXW
DFFBFRQILJXUHDFF0LQ7\S0D['HOD\VWUXH
RULQRXWSRUW
LQWHUPRGBSDWK DFFBKDQGOHBSDWKSRUWBRXWSXWSRUWBLQSXW
DFFBIHWFKBGHOD\VLQWHUPRGBSDWKGHOD\BDUUD\
DFFBIHWFKBGHOD\VSODFHVWKH
IROORZLQJYDOXHVLQGHOD\BDUUD\
GHOD\BDUUD\>@
`
PLQW\SPD[
GHOD\BDUUD\>@ GHOD\BDUUD\>@ ULVHGHOD\
GHOD\BDUUD\>@ GHOD\BDUUD\>@ GHOD\BDUUD\>@ PLQW\SPD[
IDOOGHOD\
GHOD\BDUUD\>@ GHOD\BDUUD\>@ GHOD\BDUUD\>@ PLQW\SPD[
WXUQRIIGHOD\
)LJXUH³8VLQJDFFBIHWFKBGHOD\VLQPLQW\SPD[GHOD\PRGH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBGLUHFWLRQ
DFFBIHWFKBGLUHFWLRQ
6\QRSVLV
*HWWKHGLUHFWLRQRIDSRUWRUWHUPLQDO
6\QWD[
DFFBIHWFKBGLUHFWLRQREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
LQW
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHGLUHFWLRQRIDSRUWRUWHUPLQDO
DFF,QSXWDFF2XWSXWDFF,QRXWDFF0L[HG,R
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDSRUWRUWHUPLQDO
7KH$&&URXWLQHDFFBIHWFKBGLUHFWLRQVKDOOUHWXUQDSUHGHÀQHGLQWHJHUFRQVWDQWLQGLFDWLQJWKHGLUHFWLRQRIDPRGXOH
SRUWRUSULPLWLYHWHUPLQDO7KHYDOXHVUHWXUQHGDUHJLYHQLQ7DEOH
7DEOH³7KHRSHUDWLRQRIDFFBIHWFKBGLUHFWLRQ
:KHQGLUHFWLRQLV
,QSXWRQO\
DFFBIHWFKBGLUHFWLRQVKDOOUHWXUQ
DFF,QSXW
2XWSXWRQO\
DFF2XWSXW
%LGLUHFWLRQDOLQSXWDQGRXWSXW
$FRQFDWHQDWLRQRILQSXWSRUWVDQGRXWSXW
SRUWV
DFF,QRXW
DFF0L[HG,R
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQWKDWXVHVDFFBIHWFKBGLUHFWLRQWRGHWHUPLQH
ZKHWKHURUQRWDSRUWLVDQLQSXW
LQFOXGHDFFBXVHUK
ERRO
KDQGOH
^
LQW
`
LVBSRUWBLQSXWSRUWBKDQGOH
SRUWBKDQGOH
GLUHFWLRQ
GLUHFWLRQ DFFBIHWFKBGLUHFWLRQSRUWBKDQGOH
LIGLUHFWLRQ DFF,QSXW__GLUHFWLRQ DFF,QRXW
UHWXUQWUXH
HOVH
UHWXUQIDOVH
)LJXUH³8VLQJDFFBIHWFKBGLUHFWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBHGJH
DFFBIHWFKBHGJH
6\QRSVLV
*HWWKHHGJHVSHFLÀHURIDPRGXOHSDWKLQSXWWHUPLQDO
6\QWD[
DFFBIHWFKBHGJHSDWKLRBKDQGOH
5HWXUQV
$UJXPHQWV
7\SH
'HVFULSWLRQ
LQW
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHHGJHVSHFLÀHURIDSDWKLQSXWRURXWSXWWHU
PLQDO
DFF1RHGJH
DFF(GJH
DFF(GJH[
DFF3RVHGJH
DFF(GJH
DFF(GJH[
DFF1HJHGJH
DFF(GJH[
DFF(GJH[
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SDWKLRBKDQGOH
+DQGOHWRDPRGXOHSDWKLQSXWRURXWSXWRUKDQGOHWRDWLP
LQJFKHFNWHUPLQDO
7KH$&&URXWLQHDFFBIHWFKBHGJHVKDOOUHWXUQDYDOXHWKDWLVDPDVNHGLQWHJHUUHSUHVHQWLQJWKHHGJHVSHFLÀHUIRUD
PRGXOHSDWKGHOD\WHUPLQDO
7DEOHOLVWVWKHSUHGHÀQHGHGJHVSHFLÀHUVDVWKH\DUHVSHFLÀHGLQDFFBXVHUK
7DEOH³(GJHVSHFLÀHUVFRQVWDQWV
(GJHW\SH
'HÀQHGFRQVWDQW
%LQDU\YDOXH
1RQH
DFF1RHGJH
3RVLWLYHHGJHAA[[A
DFF3RVHGJH
1HJDWLYHHGJHAA[[A
DFF1HJHGJH
AHGJH
DFF(GJH
AHGJH
DFF(GJH
A[HGJH
DFF(GJH[
[AHGJH
DFF(GJH[
A[HGJH
DFF(GJH[
[AHGJH
DFF(GJH[
7KHLQWHJHUPDVNUHWXUQHGE\DFFBIHWFKBHGJHLVXVXDOO\HLWKHUDFF3RVHGJHRUDFF1HJHGJH2FFDVLRQDOO\KRZHYHU
WKHPDVNLVDK\EULGPL[RIVSHFLÀHUVWKDWLVHTXDOWRQHLWKHU7KHH[DPSOHVKRZQLQ)LJXUHLOOXVWUDWHVKRZWR
FKHFNIRUWKHVHK\EULGHGJHVSHFLÀHUV7KHYDOXHDFF1R(GJHLVUHWXUQHGLIQRHGJHLVIRXQG
7KH H[DPSOH WDNHV D SDWK LQSXW RU RXWSXW DQG UHWXUQV WKH VWULQJ FRUUHVSRQGLQJ WR LWV HGJH VSHFLÀHU ,W SURYLGHV
DQDORJRXV IXQFWLRQDOLW\WRWKDWRIDFFBIHWFKBW\SHBVWULQWKDWLWUHWXUQVDVWULQJFRUUHVSRQGLQJWRDQLQWHJHUYDOXH
WKDWUHSUHVHQWVDW\SH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KLVH[DPSOHÀUVWFKHFNVWRVHHZKHWKHUWKHUHWXUQHGPDVNLVHTXDOWRDFF3RVHGJHRUDFF1HJHGJHZKLFKDUHWKH
PRVWOLNHO\FDVHV,ILWLVQRWWKHDSSOLFDWLRQGRHVDELWZLVH$1'ZLWKWKHUHWXUQHGPDVNDQGHDFKRIWKHRWKHUHGJH
VSHFLÀHUV WR ÀQG RXW ZKLFK W\SHV RI HGJHV LW FRQWDLQV ,I DQ HGJH W\SH LV HQFRGHG LQ WKH UHWXUQHG PDVN WKH
FRUUHVSRQGLQJHGJHW\SHVWULQJVXIÀ[LVDSSHQGHGWRWKHVWULQJ´DFF(GJHµ
FKDUDFFBIHWFKBHGJHBVWUSDWKLR
KDQGOHSDWKLR
^
LQWHGJH DFFBIHWFKBHGJHSDWKLR
VWDWLFFKDUHGJHBVWU>@
LIDFFBHUURUBIODJ
^
LIHGJH DFF1R(GJH
VWUFS\HGJHBVWUDFF1R(GJH
DFF3RVHGJH DFF(GJHDFF(GJH[DFF(GJH[
HOVHLIHGJH DFF3RV(GJH
VWUFS\HGJHBVWUDFF3RV(GJH
DFF1HJHGJH DFF(GJHDFF(GJH[DFF(GJH[
HOVHLIHGJH DFF1HJ(GJH
VWUFS\HGJHBVWUDFF1HJ(GJH
HGJHLVQHLWKHUSRVHGJHQRUQHJHGJHEXWVRPHFRPELQDWLRQ
RIRWKHUHGJHV
HOVH^
VWUFS\HGJHBVWUDFF(GJH
LIHGJHDFF(GJHVWUFDWHGJHBVWUB
LIHGJHDFF(GJHVWUFDWHGJHBVWUB
LIHGJHDFF(GJH[VWUFDWHGJHBVWUB[
LIHGJHDFF(GJH[VWUFDWHGJHBVWUB[
LIHGJHDFF(GJH[VWUFDWHGJHBVWUB[
LIHGJHDFF(GJH[VWUFDWHGJHBVWUB[
`
`
UHWXUQHGJHBVWU
`
HOVH
UHWXUQQXOO
)LJXUH³8VLQJDFFBIHWFKBHGJH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBIXOOQDPH
DFFBIHWFKBIXOOQDPH
6\QRSVLV
*HWWKHIXOOKLHUDUFKLFDOQDPHRIDQ\QDPHGREMHFWRUPRGXOHSDWK
6\QWD[
DFFBIHWFKBIXOOQDPHREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
&KDUDFWHUSRLQWHUWRDVWULQJFRQWDLQLQJWKHIXOOKLHUDUFKLFDOQDPHRIWKHREMHFW
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHREMHFW
8VHDFFBIHWFKBQDPHWRÀQGWKHORZHVWOHYHOQDPHRIWKHREMHFW
8VHDFFBFRQÀJXUHDFF3DWK'HOLP6WUWRVHWWKHGHOLPLWHUVWULQJIRUPRGXOHSDWKQDPHV
7KH$&& URXWLQH DFFBIHWFKBIXOOQDPH VKDOO REWDLQ WKH IXOO KLHUDUFKLFDO QDPH RI DQ REMHFW7KH IXOO KLHUDUFKLFDO
QDPHLVWKHQDPHWKDWXQLTXHO\LGHQWLÀHVDQREMHFW,Q)LJXUHWKHWRSOHYHOPRGXOHWRSFRQWDLQVPRGXOH
LQVWDQFHPRGZKLFKFRQWDLQVQHWZ,QWKLVH[DPSOHWKHIXOOKLHUDUFKLFDOQDPHRIWKHQHWLVWRSPRGZ
WRS
PRG
Z
)LJXUH³$GHVLJQKLHUDUFK\WKHIXOOQDPHRIQHWZLVWRSPRGZ
7DEOHOLVWVWKHREMHFWVLQD9HULORJ+'/GHVFULSWLRQIRUZKLFKDFFBIHWFKBIXOOQDPHVKDOOUHWXUQDQDPH
7DEOH³1DPHGREMHFWVVXSSRUWHGE\DFFBIHWFKBIXOOQDPH
0RGXOHV
9DULDEOHV
0RGXOHSRUWV
1DPHGHYHQWV
0RGXOHSDWKV
3DUDPHWHUV
'DWDSDWKV
6SHFSDUDPV
3ULPLWLYHV
1DPHGEORFNV
1HWV
9HULORJ+'/WDVNV
5HJLVWHUV
9HULORJ+'/IXQFWLRQV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
0RGXOHSDWKQDPHVVKDOOEHGHULYHGIURPWKHLUVRXUFHVDQGGHVWLQDWLRQVLQWKHIROORZLQJIRUPDW
VRXUFH
SDWKBGHOLPLWHU
GHVWLQDWLRQ
%\ GHIDXOW WKH SDWKBGHOLPLWHU VKDOO EH WKH FKDUDFWHU +RZHYHU WKH GHOLPLWHU FDQ EH FKDQJHG E\ XVLQJ WKH$&&
URXWLQHDFFBFRQÀJXUHWRVHWWKHGHOLPLWHUSDUDPHWHUDFF3DWK'HOLP6WUWRDQRWKHUFKDUDFWHUVWULQJ
7KHIROORZLQJH[DPSOHVVKRZQDPHVRISDWKVZLWKLQDWRSOHYHOPRGXOHPDVUHWXUQHGE\DFFBIHWFKBIXOOQDPH
ZKHQWKHSDWKBGHOLPLWHULV1RWHWKDWQDPHVRIPRGXOHSDWKVZLWKPXOWLSOHVRXUFHVRUGHVWLQDWLRQVVKDOOEHGHULYHG
IURPWKHÀUVWVRXUFHDQGGHVWLQDWLRQRQO\
7DEOH³0RGXOHSDWKQDPHVUHWXUQHGE\DFFBIHWFKBIXOOQDPH
)RUSDWKVLQPRGXOHP
DFFBIHWFKBIXOOQDPHUHWXUQVDSRLQWHUWR
D !T PDT
E!TT PET
GHI!UV PGU
,ID9HULORJVRIWZDUHSURGXFWFUHDWHVGHIDXOWQDPHVIRUXQQDPHGLQVWDQFHVDFFBIHWFKBIXOOQDPHVKDOOUHWXUQWKHIXOO
KLHUDUFKLFDOGHIDXOWQDPH2WKHUZLVHWKHURXWLQHVKDOOUHWXUQQXOOIRUXQQDPHGLQVWDQFHV
8VLQJDFFBIHWFKBIXOOQDPHZLWKDPRGXOHSRUWKDQGOHVKDOOUHWXUQWKHIXOOKLHUDUFKLFDOLPSOLFLWQDPHRIWKHSRUW
7KHURXWLQHDFFBIHWFKBIXOOQDPHVKDOOVWRUHWKHUHWXUQHGVWULQJLQDWHPSRUDU\EXIIHU7RSUHVHUYHWKHVWULQJIRUODWHU
XVHLQDQDSSOLFDWLRQLWVKRXOGEHFRSLHGWRDQRWKHUYDULDEOHUHIHUWR
,QWKHH[DPSOHVKRZQLQ)LJXUHWKHURXWLQHXVHVDFFBIHWFKBIXOOQDPHWRGLVSOD\WKHIXOOKLHUDUFKLFDOQDPHRI
DQREMHFWLIWKHREMHFWLVDQHW
LQFOXGHDFFBXVHUK
GLVSOD\BLIBQHWREMHFWBKDQGOH
KDQGOH
REMHFWBKDQGOH
^
JHWDQGGLVSOD\IXOOQDPHLIREMHFWLVDQHW
LIDFFBIHWFKBW\SHREMHFWBKDQGOH DFF1HW
LRBSULQWI2EMHFWLVDQHWV?Q
DFFBIHWFKBIXOOQDPHREMHFWBKDQGOH
HOVH
LRBSULQWI2EMHFWLVQRWDQHWV?Q
DFFBIHWFKBIXOOQDPHREMHFWBKDQGOH
`
)LJXUH³8VLQJDFFBIHWFKBIXOOQDPH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBIXOOW\SH
DFFBIHWFKBIXOOW\SH
6\QRSVLV
*HWWKHIXOOW\SHRIDQREMHFW
6\QWD[
DFFBIHWFKBIXOOW\SHREMHFWBKDQGOH
7\SH
5HWXUQV
LQW
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
$SUHGHÀQHGLQWHJHUFRQVWDQWIURPWKHOLVWVKRZQLQ
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIWKHREMHFW
8VHDFFBIHWFKBW\SHWRJHWWKHJHQHUDOW\SHFODVVLÀFDWLRQRIDQREMHFW
8VHDFFBIHWFKBW\SHBVWUWRJHWWKHIXOOW\SHDVDQFKDUDFWHUVWULQJ
7KH$&&URXWLQHDFFBIHWFKBIXOOW\SHVKDOOUHWXUQWKHIXOOW\SHRIDQREMHFW7KHIXOOW\SHLVDVSHFLÀFFODVVLÀFDWLRQRI
D9HULORJ+'/REMHFWUHSUHVHQWHGDVDSUHGHÀQHGFRQVWDQWGHÀQHGLQDFFBXVHUK7DEOHOLVWVDOORIWKH
IXOOW\SHFRQVWDQWVWKDWFDQEHUHWXUQHGE\DFFBIHWFKBIXOOW\SH
0DQ\9HULORJ+'/REMHFWVKDYHERWKDW\SHDQGDIXOOW\SH7KHW\SHRIDQREMHFWLVLWVJHQHUDO9HULORJ+'/W\SH
FODVVLÀFDWLRQ7KHIXOOW\SHLVWKHVSHFLÀFW\SHRIWKHREMHFW7KHH[DPSOHVLQ7DEOHLOOXVWUDWHWKHGLIIHUHQFH
EHWZHHQWKHW\SHRIDQREMHFWDQGWKHIXOOW\SHRIWKHVDPHREMHFWIRUVHOHFWHGREMHFWV
7DEOH³7KHGLIIHUHQFHEHWZHHQWKHW\SHDQGWKHIXOOW\SHRIDQREMHFW
)RUDKDQGOHWR
DFFBIHWFKBW\SHVKDOOUHWXUQ
DFFBIHWFKBIXOOW\SHVKDOOUHWXUQ
$VHWXSWLPLQJFKHFN
DFF7FKN
DFF6HWXS
$QDQGJDWHSULPLWLYH
DFF3ULPLWLYH
DFF$QG*DWH
$VHTXHQWLDO8'3
DFF3ULPLWLYH
DFF6HT3ULP
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBIHWFKBIXOOW\SHWRÀQGDQGGLVSOD\WKHIXOOW\SHVRIWLPLQJFKHFNV7KLV
DSSOLFDWLRQLVFDOOHGE\DKLJKHUOHYHODSSOLFDWLRQGLVSOD\BREMHFWBW\SHSUHVHQWHGDVWKHXVDJHH[DPSOHIRU
DFFBIHWFKBW\SH
LQFOXGHDFFBXVHUK
GLVSOD\BWLPLQJBFKHFNBW\SHWFKNBKDQGOH
KDQGOH
WFKNBKDQGOH
^
GLVSOD\WLPLQJFKHFNW\SH
LRBSULQWI7LPLQJFKHFNLV
VZLWFKDFFBIHWFKBIXOOW\SHWFKNBKDQGOH
^
FDVH DFF+ROG
LRBSULQWIKROG?Q
EUHDN
FDVH DFF1RFKDQJH
LRBSULQWIQRFKDQJH?Q
EUHDN
FDVH DFF3HULRG
LRBSULQWISHULRG?Q
EUHDN
FDVH DFF5HFRYHU\
LRBSULQWIUHFRYHU\?Q
EUHDN
FDVH DFF6HWXS
LRBSULQWIVHWXS?Q
EUHDN
FDVH DFF6NHZ
LRBSULQWIVNHZ?Q
EUHDN
FDVH DFF:LGWK
LRBSULQWIZLGWK?Q
`
`
)LJXUH³8VLQJDFFBIHWFKBIXOOW\SHWRGLVSOD\WKHIXOOW\SHVRIWLPLQJFKHFNV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBIHWFKBIXOOW\SHWRÀQGDQGGLVSOD\WKHIXOOW\SHVRISULPLWLYHREMHFWV
SDVVHG DV LQSXW DUJXPHQWV 7KLV DSSOLFDWLRQ LV FDOOHG E\ D KLJKHUOHYHO DSSOLFDWLRQ GLVSOD\BREMHFWBW\SH
SUHVHQWHGDVWKHXVDJHH[DPSOHIRUDFFBIHWFKBW\SH
LQFOXGHDFFBXVHUK
GLVSOD\BSULPLWLYHBW\SHSULPLWLYHBKDQGOH
KDQGOH
SULPLWLYHBKDQGOH
^
GLVSOD\SULPLWLYHW\SH
LRBSULQWI3ULPLWLYHLV
VZLWFKDFFBIHWFKBIXOOW\SHSULPLWLYHBKDQGOH
^
FDVHDFF$QG*DWH
LRBSULQWIDQGJDWH?QEUHDN
FDVHDFF%XI*DWH
LRBSULQWIEXIJDWH?QEUHDN
FDVHDFF%XILI*DWHFDVHDFF%XILI*DWH
LRBSULQWIEXILIJDWH?QEUHDN
FDVHDFF&PRV*DWHFDVHDFF1PRV*DWHFDVHDFF3PRV*DWH
FDVHDFF5FPRV*DWHFDVHDFF5QPRV*DWHFDVHDFF5SPRV*DWH
LRBSULQWI026RU&PRVJDWH?QEUHDN
FDVHDFF&RPE3ULP
LRBSULQWIFRPELQDWLRQDO8'3?QEUHDN
FDVHDFF6HT3ULP
LRBSULQWIVHTXHQWLDO8'3?QEUHDN
FDVHDFF1RWLI*DWHFDVHDFF1RWLI*DWH
LRBSULQWIQRWLIJDWH?QEUHDN
FDVHDFF5WUDQ*DWH
LRBSULQWIUWUDQJDWH?QEUHDN
FDVHDFF5WUDQLI*DWHFDVHDFF5WUDQLI*DWH
LRBSULQWIUWUDQLIJDWH?QEUHDN
FDVHDFF1DQG*DWH
LRBSULQWIQDQGJDWH?QEUHDN
FDVHDFF1RU*DWH
LRBSULQWIQRUJDWH?QEUHDN
FDVHDFF1RW*DWH
LRBSULQWIQRWJDWH?QEUHDN
FDVHDFF2U*DWH
LRBSULQWIRUJDWH?QEUHDN
FDVHDFF3XOOGRZQ*DWH
LRBSULQWISXOOGRZQJDWH?QEUHDN
FDVHDFF3XOOXS*DWH
LRBSULQWISXOOXSJDWH?QEUHDN
FDVHDFF;QRU*DWH
LRBSULQWI[QRUJDWH?QEUHDN
FDVHDFF;RU*DWH
LRBSULQWI[RUJDWH?Q
`
`
)LJXUH³8VLQJDFFBIHWFKBIXOOW\SHWRGLVSOD\WKHIXOOW\SHVRISULPLWLYHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBLQGH[
DFFBIHWFKBLQGH[
6\QRSVLV
*HWWKHLQGH[QXPEHUIRUDSRUWRUWHUPLQDO
6\QWD[
DFFBIHWFKBLQGH[REMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
LQW
'HVFULSWLRQ
,QWHJHULQGH[IRUDSRUWRUWHUPLQDOVWDUWLQJZLWK]HUR
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHSRUWRUWHUPLQDO
7KH$&&URXWLQHDFFBIHWFKBLQGH[VKDOOUHWXUQWKHLQGH[QXPEHUIRUDPRGXOHSRUWRUSULPLWLYHWHUPLQDO,QGLFHVDUH
LQWHJHUVWKDWVKDOOVWDUWDW]HURDQGLQFUHDVHIURPOHIWWRULJKW
³ 7KHLQGH[RIDSRUWVKDOOEHLWVSRVLWLRQLQDPRGXOHGHÀQLWLRQLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
³ 7KHLQGH[RIDWHUPLQDOVKDOOEHLWVSRVLWLRQLQDJDWHVZLWFKRU8'3LQVWDQFH
7DEOHVKRZVKRZLQGLFHVVKDOOEHGHULYHG
7DEOH³'HULYLQJLQGLFHV
)RU
,QGLFHVDUH
7HUPLQDOV
QDQGJRXWLQLQ
IRUWHUPLQDORXW
IRUWHUPLQDOLQ
IRUWHUPLQDOLQ
,PSOLFLWSRUWV
PRGXOH$TDE
IRUSRUWT
IRUSRUWD
IRUSRUWE
([SOLFLWSRUWV
PRGXOHWRS
UHJUDUE
ZLUHZT
H[SOLFLWBSRUWBPRGHSPEUEDUDTZT
HQGPRGXOH
IRUH[SOLFLWSRUWHSPT
IRUH[SOLFLWSRUWHSPD
IRUH[SOLFLWSRUWHSPE
PRGXOHH[SOLFLWBSRUWBPRGTDE
LQSXWDE
RXWSXWT
QDQGTDE
HQGPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH H[DPSOH VKRZQ LQ )LJXUH SUHVHQWV D &ODQJXDJH DSSOLFDWLRQ WKDW XVHV DFFBIHWFKBLQGH[ WR ÀQG DQG
GLVSOD\WKHLQSXWSRUWVRIDPRGXOH
LQFOXGHDFFBXVHUK
GLVSOD\BLQSXWVPRGXOHBKDQGOH
KDQGOHPRGXOHBKDQGOH
^
KDQGOH
SRUWBKDQGOH
LQW
GLUHFWLRQ
`
JHWKDQGOHIRUWKHPRGXOHDQGHDFKRILWVSRUWV
SRUWBKDQGOH QXOO
ZKLOHSRUWBKDQGOH DFFBQH[WBSRUWPRGXOHBKDQGOHSRUWBKDQGOH
^
GHWHUPLQHLISRUWLVDQLQSXW
GLUHFWLRQ DFFBIHWFKBGLUHFWLRQSRUWBKDQGOH
JLYHWKHLQGH[RIHDFKLQSXWSRUW
LIGLUHFWLRQ DFF,QSXW
LRBSULQWI3RUWGRIVLVDQLQSXW?Q
DFFBIHWFKBLQGH[SRUWBKDQGOH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
`
)LJXUH³8VLQJDFFBIHWFKBLQGH[
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBORFDWLRQ
DFFBIHWFKBORFDWLRQ
6\QRSVLV
*HWWKHORFDWLRQRIDQREMHFWLQD9HULORJ+'/VRXUFHÀOH
6\QWD[
DFFBIHWFKBORFDWLRQORFBSREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
YRLG
'HVFULSWLRQ
1RQH
7\SH
1DPH
SBORFDWLRQ
ORFBS
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
3RLQWHUWRDSUHGHÀQHGORFDWLRQVWUXFWXUH
+DQGOHWRDQREMHFW
7KH$&&URXWLQHDFFBIHWFKBORFDWLRQVKDOOUHWXUQWKHÀOHQDPHDQGOLQHQXPEHULQWKHÀOHIRUWKHVSHFLÀHGREMHFW
7KHÀOHQDPHDQGOLQHQXPEHUVKDOOEHUHWXUQHGLQDQVBORFDWLRQGDWDVWUXFWXUH7KLVGDWDVWUXFWXUHLVGHÀQHGLQ
DFFBXVHUKDQGOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBORFDWLRQ
^
LQWOLQHBQROLQHQXPEHULQWKHILOH
FKDUILOHQDPHILOHQDPH
`VBORFDWLRQSBORFDWLRQ
)LJXUH³VBORFDWLRQGDWDVWUXFWXUH
ÀOHQDPHÀHOGLVDFKDUDFWHUSRLQWHU
OLQHBQRÀHOGLVDQRQ]HURSRVLWLYHLQWHJHU
7DEOHOLVWVWKHREMHFWVWKDWVKDOOEHVXSSRUWHGE\DFFBIHWFKBORFDWLRQ
7DEOH³2EMHFWVVXSSRUWHGE\DFFBIHWFKBORFDWLRQ
6HFWLRQ
2EMHFWW\SH
/RFDWLRQUHWXUQHG
0RGXOHV
0RGXOHGHÀQLWLRQ
0RGXOHSRUWV
0RGXOHGHÀQLWLRQ
0RGXOHSDWKV
0RGXOHSDWKOLQH
'DWDSDWKV
0RGXOHSDWKOLQH
3ULPLWLYHV
,QVWDQWLDWLRQOLQH
([SOLFLWQHWV
'HÀQLWLRQOLQH
,PSOLFLWQHWV
/LQHZKHUHÀUVWXVHG
5HJLVWHUV
'HÀQLWLRQOLQH
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³2EMHFWVVXSSRUWHGE\DFFBIHWFKBORFDWLRQFRQWLQXHG
2EMHFWW\SH
/RFDWLRQUHWXUQHG
9DULDEOHV
'HÀQLWLRQOLQH
1DPHGHYHQWV
'HÀQLWLRQOLQH
3DUDPHWHUV
'HÀQLWLRQOLQH
6SHFSDUDPV
'HÀQLWLRQOLQH
1DPHGEORFNV
'HÀQLWLRQOLQH
9HULORJ+'/WDVNV
'HÀQLWLRQOLQH
9HULORJ+'/IXQFWLRQV
'HÀQLWLRQOLQH
7KHUHWXUQYDOXHIRUÀOHQDPHLVSODFHGLQWKH$&&LQWHUQDOVWULQJEXIIHU6HHIRUDQH[SODQDWLRQRIVWULQJVLQ$&&
URXWLQHV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBIHWFKBORFDWLRQWRSULQWWKHÀOHQDPHDQGOLQHQXPEHUIRUDQREMHFW
YRLGILQGBREMHFWBORFDWLRQREMHFW
KDQGOHREMHFW
^
VBORFDWLRQVBORF
SBORFDWLRQORFBS VBORF
DFFBIHWFKBORFDWLRQORFBSREMHFWJHWWKHILOHQDPHDQGOLQHBQR
LIDFFBHUURUBIODJ2QVXFFHVV
LRBSULQWI´2EMHFWORFDWHGLQILOHVRQOLQHG?Qµ
ORFBS!ILOHQDPHORFBS!OLQHBQR
`
)LJXUH³8VLQJDFFBIHWFKBORFDWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBQDPH
DFFBIHWFKBQDPH
6\QRSVLV
*HWWKHLQVWDQFHQDPHRIDQ\QDPHGREMHFWRUPRGXOHSDWK
6\QWD[
DFFBIHWFKBQDPHREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
&KDUDFWHUSRLQWHUWRDVWULQJFRQWDLQLQJWKHLQVWDQFHQDPHRIWKHREMHFW
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHQDPHGREMHFW
8VHDFFBIHWFKBIXOOQDPHWRJHWWKHIXOOKLHUDUFKLFDOQDPHRIWKHREMHFW
8VHDFFBIHWFKBGHIQDPHWRJHWWKHGHÀQLWLRQQDPHRIWKHREMHFW
8VHDFFBFRQÀJXUHDFF3DWK'HOLP6WUWRVHWWKHQDPLQJFRQYHQWLRQIRUPRGXOHSDWKV
7KH$&& URXWLQH DFFBIHWFKBQDPH VKDOO REWDLQ WKH QDPH RI DQ REMHFW7KH QDPH RI DQ REMHFW LV LWV ORZHVWOHYHO
QDPH,QWKHIROORZLQJH[DPSOHWKHWRSOHYHOPRGXOHWRSFRQWDLQVPRGXOHLQVWDQFHPRGZKLFKFRQWDLQVQHW
ZDVVKRZQLQ)LJXUH,QWKLVH[DPSOHWKHQDPHRIWKHQHWLVZ
WRS
PRG
Z
)LJXUH³$GHVLJQKLHUDUFK\WKHQDPHRIQHWZLV´Zµ
7KHUHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH$&&LQWHUQDOVWULQJEXIIHU6HHIRUDQH[SODQDWLRQRIVWULQJVLQ
$&&URXWLQHV
7DEOHOLVWVWKHREMHFWVLQD9HULORJ+'/GHVFULSWLRQIRUZKLFKDFFBIHWFKBQDPHVKDOOUHWXUQDQDPH
7DEOH³1DPHGREMHFWVVXSSRUWHGE\DFFBIHWFKBQDPH
6HFWLRQ
0RGXOHV
9DULDEOHV
0RGXOHSRUWV
1DPHGHYHQWV
0RGXOHSDWKV
3DUDPHWHUV
'DWDSDWKV
6SHFSDUDPV
3ULPLWLYHV
1DPHGEORFNV
1HWV
9HULORJ+'/WDVNV
5HJLVWHUV
9HULORJ+'/IXQFWLRQV
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
0RGXOHSDWKQDPHVVKDOOEHGHULYHGIURPWKHLUVRXUFHVDQGGHVWLQDWLRQVLQWKHIROORZLQJIRUPDW
VRXUFH
SDWKBGHOLPLWHU
GHVWLQDWLRQ
%\GHIDXOWWKHSDWKBGHOLPLWHULVWKHFKDUDFWHU+RZHYHUWKHGHOLPLWHUFDQEHFKDQJHGE\XVLQJWKH$&&URXWLQH
DFFBFRQÀJXUHWRVHWWKHGHOLPLWHUSDUDPHWHUDFF3DWK'HOLP6WUWRDQRWKHUFKDUDFWHUVWULQJ
7DEOH VKRZV QDPHV RI SDWKV ZLWKLQ D WRSOHYHO PRGXOH P DV UHWXUQHG E\ DFFBIHWFKBQDPH ZKHQ WKH
SDWKBGHOLPLWHULV1RWHWKDWQDPHVRIPRGXOHSDWKVZLWKPXOWLSOHVRXUFHVRUGHVWLQDWLRQVVKDOOEHGHULYHGIURPWKH
ÀUVWVRXUFHDQGGHVWLQDWLRQRQO\
7DEOH³0RGXOHSDWKQDPHVUHWXUQHGE\DFFBIHWFKBQDPH
)RUSDWKVLQPRGXOHP
DFFBIHWFKBQDPHUHWXUQVDSRLQWHUWR
D !T DT
E!TT ET
GHI!UV GU
,ID9HULORJVRIWZDUHLPSOHPHQWDWLRQFUHDWHVGHIDXOWQDPHVIRUXQQDPHGLQVWDQFHVDFFBIHWFKBQDPHVKDOOUHWXUQWKH
GHIDXOWQDPH2WKHUZLVHWKHURXWLQHVKDOOUHWXUQQXOOIRUXQQDPHGLQVWDQFHV
8VLQJDFFBIHWFKBQDPHZLWKDPRGXOHSRUWKDQGOHVKDOOUHWXUQWKHLPSOLFLWQDPHRIWKHSRUW
7KHURXWLQHDFFBIHWFKBQDPHVKDOOVWRUHWKHUHWXUQHGVWULQJLQDWHPSRUDU\EXIIHU7RSUHVHUYHWKHVWULQJIRUODWHUXVH
LQDQDSSOLFDWLRQLWVKRXOGEHSUHVHUYHGUHIHUWR
7KHIROORZLQJH[DPSOHXVHVDFFBIHWFKBQDPHWRGLVSOD\WKHQDPHVRIWRSOHYHOPRGXOHV
LQFOXGHDFFBXVHUK
VKRZBWRSBPRGV
^
KDQGOH
PRGXOHBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VFDQDOOWRSOHYHOPRGXOHV
LRBSULQWI7KHWRSOHYHOPRGXOHVDUH?Q
PRGXOHBKDQGOH QXOO
ZKLOHPRGXOHBKDQGOH DFFBQH[WBWRSPRGPRGXOHBKDQGOH
LRBSULQWIV?QDFFBIHWFKBQDPHPRGXOHBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBIHWFKBQDPH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBSDUDPW\SH
DFFBIHWFKBSDUDPW\SH
6\QRSVLV
*HWWKHGDWDW\SHRIDSDUDPHWHURUVSHFSDUDP
6\QWD[
DFFBIHWFKBSDUDPW\SHSDUDPHWHUBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHGDWDW\SHRIDSDUDPHWHU
DFF,QW3DUDPDFF,QWHJHU3DUDPDFF5HDO3DUDPDFF6WULQJ3DUDP
7\SH
1DPH
KDQGOH
SDUDPHWHUBKDQGOH
'HVFULSWLRQ
+DQGOHWRDSDUDPHWHURUVSHFSDUDP
8VHDFFBQH[WBSDUDPHWHUWRJHWDOOSDUDPHWHUVZLWKLQDPRGXOH
8VHDFFBQH[WBVSHFSDUDPWRJHWDOOVSHFSDUDPVZLWKLQDPRGXOH
7KH$&&URXWLQHDFFBIHWFKBSDUDPW\SHVKDOOUHWXUQDQLQWHJHUFRQVWDQWWKDWUHSUHVHQWVWKHGDWDW\SHRIDYDOXHWKDW
KDVEHHQDVVLJQHGWRDSDUDPHWHURUVSHFSDUDP
)LJXUHXVHVDFFBIHWFKBSDUDPW\SHWRGLVSOD\WKHYDOXHVRIDOOSDUDPHWHUVZLWKLQDPRGXOH
LQFOXGHDFFBXVHUK
SULQWBSDUDPHWHUBYDOXHV
^
KDQGOHPRGXOHBKDQGOHSDUDPBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
SDUDPBKDQGOH QXOO
ZKLOHSDUDPBKDQGOH DFFBQH[WBSDUDPHWHUPRGXOHBKDQGOHSDUDPBKDQGOH
^
LRBSULQWI3DUDPHWHUVKDVYDOXHDFFBIHWFKBIXOOQDPHSDUDPBKDQGOH
VZLWFKDFFBIHWFKBSDUDPW\SHSDUDPBKDQGOH
^
FDVHDFF5HDO3DUDP
LRBSULQWIOI?QDFFBIHWFKBSDUDPYDOSDUDPBKDQGOHEUHDN
FDVHDFF,QWHJHU3DUDP
LRBSULQWIG?QLQWDFFBIHWFKBSDUDPYDOSDUDPBKDQGOHEUHDN
FDVHDFF6WULQJ3DUDP
LRBSULQWIV?QFKDULQWDFFBIHWFKBSDUDPYDOSDUDPBKDQGOHEUHDN
`
`
DFFBFORVH
`
)LJXUH³8VLQJDFFBIHWFKBSDUDPW\SH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBSDUDPYDO
DFFBIHWFKBSDUDPYDO
6\QRSVLV
*HWWKHYDOXHRIDSDUDPHWHURUVSHFSDUDP
6\QWD[
DFFBIHWFKBSDUDPYDOSDUDPHWHUBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
GRXEOH
'HVFULSWLRQ
7KHYDOXHRIDSDUDPHWHURUVSHFSDUDP
7\SH
1DPH
KDQGOH
SDUDPHWHUBKDQGOH
'HVFULSWLRQ
+DQGOHWRDSDUDPHWHURUVSHFSDUDP
8VHDFFBIHWFKBSDUDPW\SHWRUHWULHYHWKHGDWDW\SHRIDSDUDPHWHU
8VHDFFBQH[WBSDUDPHWHUWRVFDQDOOSDUDPHWHUVZLWKLQDPRGXOH
8VHDFFBQH[WBVSHFSDUDPWRVFDQDOOVSHFSDUDPVZLWKLQDPRGXOH
7KH$&&URXWLQHDFFBIHWFKBSDUDPW\SHVKDOOUHWXUQWKHYDOXHVWRUHGLQDSDUDPHWHURUVSHFSDUDP7KHYDOXHVKDOO
EHUHWXUQHGDVDGRXEOHSUHFLVLRQÁRDWLQJSRLQWQXPEHU
$SDUDPHWHUYDOXHFDQEHVWRUHGDVRQHRIWKUHHGDWDW\SHV
³ $GRXEOHSUHFLVLRQÁRDWLQJSRLQWQXPEHU
³ $QLQWHJHUYDOXH
³ $VWULQJ
7KHUHIRUHLWFDQEHQHFHVVDU\WRFDOODFFBIHWFKBSDUDPW\SHWRGHWHUPLQHWKHGDWDW\SHRIWKHSDUDPHWHUYDOXHDV
VKRZQLQWKHH[DPSOHLQ)LJXUH
7KHURXWLQHDFFBIHWFKBSDUDPYDOUHWXUQVYDOXHVDVW\SHGRXEOH7KHYDOXHVFDQEHFRQYHUWHGEDFNWRLQWHJHUVRU
FKDUDFWHU SRLQWHUV XVLQJ WKH &ODQJXDJH FDVW PHFKDQLVP DV VKRZQ LQ 7DEOH 1RWH WKDW VRPH &ODQJXDJH
FRPSLOHUVGRQRWDOORZFDVWLQJDGRXEOHSUHFLVLRQYDOXHGLUHFWO\WRDFKDUDFWHUSRLQWHULWLVWKHUHIRUHQHFHVVDU\WRXVH
DWZRVWHSFDVWWRÀUVWFRQYHUWWKHGRXEOHYDOXHWRDQLQWHJHUDQGWKHQFRQYHUWWKHLQWHJHUWRDFKDUDFWHUSRLQWHU
,IDFKDUDFWHUVWULQJLVUHWXUQHGLWLVSODFHGLQWKH$&&LQWHUQDOVWULQJEXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ
$&&URXWLQHV
7DEOH³&DVWLQJDFFBIHWFKBSDUDPYDOUHWXUQYDOXHV
7RFRQYHUWWR
)ROORZWKHVHVWHSV
,QWHJHU
&DVWWKHUHWXUQYDOXHWRWKHLQWHJHUGDWDW\SHXVLQJWKH&ODQJXDJHFDVWRSHU
DWRULQW
LQWBYDO LQWDFFBIHWFKBSDUDPYDO
6WULQJ
&DVWWKHUHWXUQYDOXHWRDFKDUDFWHUSRLQWHUXVLQJWKH&ODQJXDJHFDVWRSHUD
WRUVFKDULQW
VWUBSWU FKDULQWDFFBIHWFKBSDUDPYDO
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHVKRZQLQ)LJXUHSUHVHQWVD&ODQJXDJHDSSOLFDWLRQSULQWBSDUDPHWHUBYDOXHVWKDWXVHV
DFFBIHWFKBSDUDPW\SHWRGLVSOD\WKHYDOXHVRIDOOSDUDPHWHUVZLWKLQDPRGXOH
LQFOXGHDFFBXVHUK
SULQWBSDUDPHWHUBYDOXHV
^
KDQGOH
PRGXOHBKDQGOH
KDQGOH
SDUDPBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
`
VFDQDOOSDUDPHWHUVLQWKHPRGXOHDQGGLVSOD\WKHLUYDOXHV
DFFRUGLQJWRW\SH
SDUDPBKDQGOH QXOO
ZKLOHSDUDPBKDQGOH DFFBQH[WBSDUDPHWHUPRGXOHBKDQGOHSDUDPBKDQGOH
^
LRBSULQWI3DUDPHWHUVKDVYDOXHDFFBIHWFKBIXOOQDPHSDUDPBKDQGOH
VZLWFKDFFBIHWFKBSDUDPW\SHSDUDPBKDQGOH
^
FDVHDFF5HDO3DUDP
LRBSULQWIOI?QDFFBIHWFKBSDUDPYDOSDUDPBKDQGOH
EUHDN
FDVHDFF,QWHJHU3DUDP
LRBSULQWIG?QLQWDFFBIHWFKBSDUDPYDOSDUDPBKDQGOH
EUHDN
FDVHDFF6WULQJ3DUDP
LRBSULQWIV?QFKDULQWDFFBIHWFKBSDUDPYDOSDUDPBKDQGOH
EUHDN
`
`
WZRVWHSFDVW
DFFBFORVH
)LJXUH³8VLQJDFFBIHWFKBSDUDPYDO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBSRODULW\
DFFBIHWFKBSRODULW\
6\QRSVLV
*HWWKHSRODULW\RIDSDWK
6\QWD[
DFFBIHWFKBSRODULW\SDWKBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
LQW
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHSRODULW\RIDSDWK
DFF3RVLWLYHDFF1HJDWLYHDFF8QNQRZQ
7\SH
1DPH
KDQGOH
SDWKBKDQGOH
'HVFULSWLRQ
+DQGOHWRDPRGXOHSDWKRUGDWDSDWK
7KH$&&URXWLQHDFFBIHWFKBSRODULW\VKDOOUHWXUQDQLQWHJHUFRQVWDQWWKDWUHSUHVHQWVWKHSRODULW\RIWKHVSHFLÀHG
SDWK7KHSRODULW\RIDSDWKGHVFULEHVKRZDVLJQDOWUDQVLWLRQDWLWVVRXUFHSURSDJDWHVWRLWVGHVWLQDWLRQLQWKHDEVHQFH
RIORJLFVLPXODWLRQHYHQWV7KHUHWXUQYDOXHVKDOOEHRQHRIWKHSUHGHÀQHGLQWHJHUFRQVWDQWSRODULW\W\SHVOLVWHGLQ
7DEOH
7DEOH³3RODULW\W\SHVUHWXUQHGE\DFFBIHWFKBSRODULW\
,QWHJHUFRQVWDQW
'HVFULSWLRQ
DFF3RVLWLYH
$ULVHDWWKHVRXUFHFDXVHVDULVHDWWKHGHVWLQDWLRQ
$IDOODWWKHVRXUFHFDXVHVDIDOODWWKHGHVWLQDWLRQ
DFF1HJDWLYH
$ULVHDWWKHVRXUFHFDXVHVDIDOODWWKHGHVWLQDWLRQ
$IDOODWWKHVRXUFHFDXVHVDULVHDWWKHGHVWLQDWLRQ
DFF8QNQRZQ
8QSUHGLFWDEOHDULVHRUIDOODWWKHVRXUFHFDXVHVHLWKHUDULVHRUIDOO
DWWKHGHVWLQDWLRQ
7KHH[DPSOHVKRZQLQ)LJXUHWDNHVDSDWKDUJXPHQWDQGUHWXUQVWKHVWULQJFRUUHVSRQGLQJWRLWVSRODULW\
FKDUIHWFKBSRODULW\BVWUSDWK
^
VZLWFKDFFBIHWFKBSRODULW\SDWK^
FDVHDFF3RVLWLYHUHWXUQ´DFF3RVLWLYHµ
FDVHDFF1HJDWLYHUHWXUQ´DFF1HJDWLYHµ
FDVHDFF8QNQRZQUHWXUQ´DFF8QNQRZQµ
GHIDXOWUHWXUQQXOO
`
`
)LJXUH³8VLQJDFFBIHWFKBSRODULW\
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBSUHFLVLRQ
DFFBIHWFKBSUHFLVLRQ
6\QRSVLV
*HWWKHVPDOOHVWWLPHSUHFLVLRQDUJXPHQWVSHFLILHGLQDOOCWLPHVFDOHFRPSLOHUGLUHFWLYHVLQDJLYHQGHVLJQ
6\QWD[
DFFBIHWFKBSUHFLVLRQ
7\SH
5HWXUQV
LQW
'HVFULSWLRQ
$QLQWHJHUYDOXHWKDWUHSUHVHQWVDWLPHSUHFLVLRQ
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBIHWFKBWLPHVFDOHBLQIRWRJHWWKHWLPHVFDOHDQGSUHFLVLRQRIDVSHFLÀFREMHFW
7KH $&& URXWLQH DFFBIHWFKBSUHFLVLRQ VKDOO UHWXUQ WKH VPDOOHVW WLPH SUHFLVLRQ DUJXPHQW VSHFLÀHG LQ DOO
CWLPHVFDOH FRPSLOHU GLUHFWLYHV IRU D JLYHQ GHVLJQ7KH YDOXH UHWXUQHG VKDOO EH WKH RUGHU RI PDJQLWXGH RI RQH
VHFRQGDVVKRZQLQ7DEOH
7DEOH³9DOXHUHWXUQHGE\DFFBIHWFKBSUHFLVLRQ
,QWHJHUYDOXHUHWXUQHG
6LPXODWLRQWLPHSUHFLVLRQ
UHSUHVHQWHG
V
V
V
PV
PV
PV
—V
—V
—V
QV
QV
QV
SV
SV
SV
IV
IV
IV
,IWKHUHDUHQRCWLPHVFDOHFRPSLOHUGLUHFWLYHVVSHFLÀHGIRUDGHVLJQDFFBIHWFKBSUHFLVLRQVKDOOUHWXUQDYDOXHRI
V
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBSXOVHUH
DFFBIHWFKBSXOVHUH
6\QRSVLV
*HWFXUUHQWSXOVHKDQGOLQJUHMHFWBYDOXHDQGHBYDOXHIRUDPRGXOHSDWK
6\QWD[
DFFBIHWFKBSXOVHUHSDWKUHUHUHUHUHUH
UHUHUHUHUHUH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SDWK
GRXEOH
UU
UHMHFWBOLPLWYDOXHVWKHQXPEHURIDUJXPHQWVLVGHWHUPLQHG
E\DFF3DWK'HOD\&RXQW
GRXEOH
HH
HBOLPLWYDOXHVWKHQXPEHURIDUJXPHQWVLVGHWHUPLQHGE\
DFF3DWK'HOD\&RXQW
+DQGOHRIPRGXOHSDWK
8VHDFFBDSSHQGBSXOVHUHWRDGGWRWKHH[LVWLQJSXOVHKDQGOLQJYDOXHV
8VHDFFBUHSODFHBSXOVHUHWRUHSODFHH[LVWLQJSXOVHKDQGOLQJYDOXHV
8VHDFFBVHWBSXOVHUHWRVHWSXOVHKDQGOLQJYDOXHVDVDSHUFHQWDJHRIWKHSDWKGHOD\
7KH$&&URXWLQHDFFBIHWFKBSXOVHUHVKDOOREWDLQWKHFXUUHQWYDOXHVFRQWUROOLQJKRZSXOVHVDUHSURSDJDWHGWKURXJK
PRGXOHSDWKV
$SXOVHLVGHÀQHGDVWZRWUDQVLWLRQVRQWKHVDPHSDWKWKDWRFFXULQDVKRUWHUSHULRGRIWLPHWKDQWKHSDWKGHOD\3XOVH
FRQWUROYDOXHVGHWHUPLQHZKHWKHUDSXOVHVKRXOGEHUHMHFWHGSURSDJDWHGWKURXJKWRWKHRXWSXWRUFRQVLGHUHGDQHUURU
7KHSXOVHFRQWUROYDOXHVFRQVLVWRIDUHMHFWBOLPLWDQGDQHBOLPLWSDLURIYDOXHVZKHUH
³ 7KH UHMHFWBOLPLW VKDOO VHW D WKUHVKROG IRU GHWHUPLQLQJ ZKHQ WR UHMHFW D SXOVH³DQ\ SXOVH OHVV WKDQ WKH
UHMHFWBOLPLWVKDOOQRWSURSDJDWHWRWKHRXWSXWRIWKHSDWK
³ 7KHHBOLPLWVKDOOVHWDWKUHVKROGIRUGHWHUPLQLQJZKHQDSXOVHLVDQHUURU³DQ\SXOVHOHVVWKDQWKHHBOLPLWDQG
JUHDWHUWKDQRUHTXDOWRWKHUHMHFWBOLPLWVKDOOSURSDJDWHDORJLF[WRWKHSDWKRXWSXW
³ $SXOVHWKDWLVJUHDWHUWKDQRUHTXDOWRWKHHBOLPLWVKDOOSURSDJDWHWKURXJKWRWKHSDWKRXWSXW
7DEOHLOOXVWUDWHVWKHUHODWLRQVKLSEHWZHHQWKHUHMHFWBOLPLWDQGWKHHBOLPLW
7DEOH³3DWKSXOVHFRQWUROH[DPSOH
:KHQ
UHMHFWBOLPLW HBOLPLW 7KHSXOVHRQDPRGXOHSDWKRXWSXWVKDOOEH
5HMHFWHGLI
$QHUURULI*DQG
3DVVHGLI*
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KH QXPEHU RI SXOVH FRQWURO YDOXHV WKDW DFFBIHWFKBSXOVHUH VKDOO UHWULHYH LV FRQWUROOHG XVLQJ WKH $&& URXWLQH
DFFBFRQÀJXUHWRVHWWKHGHOD\FRXQWFRQÀJXUDWLRQSDUDPHWHUDFF3DWK'HOD\&RXQWDVVKRZQLQ7DEOH
7DEOH³+RZWKHDFF3DWK'HOD\&RXQWDIIHFWVDFFBIHWFKBSXOVHUH
:KHQDFF3DWK'HOD\&RXQWLV
DFFBIHWFKBSXOVHUHVKDOOUHWULHYH
2QHSDLURIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUDOOWUDQVLWLRQVUDQGH
7ZRSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUULVHWUDQVLWLRQVUDQGH
RQHSDLUIRUIDOOWUDQVLWLRQVUDQGH
7KUHHSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUULVHWUDQVLWLRQVUDQGH
RQHSDLUIRUIDOOWUDQVLWLRQVUDQGH
RQHSDLUIRUWXUQRIIWUDQVLWLRQVUDQGH
WKHGHIDXOW
6L[SDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV³DGLIIHUHQWSDLU
IRUHDFKSRVVLEOHWUDQVLWLRQDPRQJDQG=
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
7ZHOYHSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV³DGLIIHUHQW
SDLUIRUHDFKSRVVLEOHWUDQVLWLRQDPRQJ;DQG=
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!;WUDQVLWLRQVUDQGH
RQHSDLUIRU;!WUDQVLWLRQVUDQGH
RQHSDLUIRU!;WUDQVLWLRQVUDQGH
RQHSDLUIRU;!WUDQVLWLRQVUDQGH
RQHSDLUIRU;!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!;WUDQVLWLRQVUDQGH
7KHPLQLPXPQXPEHURISDLUVRIUHMHFWBOLPLWDQGHBOLPLWDUJXPHQWVWRSDVVWRDFFBIHWFKBSXOVHUHVKDOOHTXDOWKH
YDOXH RI DFF3DWK'HOD\&RXQW $Q\ XQXVHG UHMHFWBOLPLW DQG HBOLPLW DUJXPHQW SDLUV VKDOO EH LJQRUHG E\
DFFBIHWFKBSXOVHUHDQGFDQEHGURSSHGIURPWKHDUJXPHQWOLVW
,I DFF3DWK'HOD\&RXQW LV QRW VHW H[SOLFLWO\ LW VKDOO GHIDXOW WR DQG WKHUHIRUH VL[ SDLUV RI SXOVH UHMHFWBOLPLW DQG
HBOLPLW DUJXPHQWV KDYH WR EH XVHG ZKHQ DFFBIHWFKBSXOVHUH LV FDOOHG 1RWH WKDW WKH YDOXH DVVLJQHG WR
DFF3DWK'HOD\&RXQW DOVR DIIHFWV DFFBDSSHQGBGHOD\V DFFBIHWFKBGHOD\V DFFBUHSODFHBGHOD\V
DFFBDSSHQGBSXOVHUHDQGDFFBUHSODFHBSXOVHUH
3XOVHFRQWUROYDOXHVVKDOOEHUHWULHYHGXVLQJWKHWLPHVFDOHRIWKHPRGXOHWKDWFRQWDLQVWKHSDWK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH H[DPSOH VKRZQ LQ )LJXUH VKRZV KRZ DQ DSSOLFDWLRQ JHWBSXOVHYDOV XVHV DFFBIHWFKBSXOVHUH WR
UHWULHYHULVHDQGIDOOSXOVHKDQGOLQJYDOXHVRISDWKVOLVWHGLQDÀOHFDOOHGSDWKGDW7KHIRUPDWRIWKHÀOHLVVKRZQ
LQWKHIROORZLQJGLDJUDP
‡
‡
SDWKVRXUFH
WRSPLQRXW
QDPHRIPRGXOH
‡
‡
SDWKGHVWLQDWLRQ
LQFOXGHVWGLRK!
LQFOXGHDFFBXVHUK
GHILQH1$0(B6,=(
JHWBSXOVHYDOV
^
),/(
LQILOH
FKDU
PRGBQDPH>1$0(B6,=(@
FKDU
SDWKLQBQDPH>1$0(B6,=(@SDWKRXWBQDPH>1$0(B6,=(@
KDQGOH PRGSDWK
GRXEOH ULVHBUHMHFWBOLPLWULVHBHBOLPLWIDOOBUHMHFWBOLPLWIDOOBHBOLPLW
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWDFF3DWK'HOD\&RXQWWRUHWXUQWZRSDLUVRISXOVHKDQGOLQJYDOXHV
RQHHDFKIRUULVHDQGIDOOWUDQVLWLRQV
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
UHDGDOOPRGXOHSDWKVSHFLILFDWLRQVIURPILOHSDWKGDW
LQILOH IRSHQSDWKGDWU
ZKLOHIVFDQILQILOHVVV
PRGBQDPHSDWKLQBQDPHSDWKRXWBQDPH (2)
^
PRG DFFBKDQGOHBREMHFWPRGBQDPH
SDWK DFFBKDQGOHBPRGSDWKPRGSDWKLQBQDPHSDWKRXWBQDPH
LIDFFBIHWFKBSXOVHUHSDWK
ULVHBUHMHFWBOLPLWULVHBHBOLPLW
IDOOBUHMHFWBOLPLWIDOOBHBOLPLW
^
LRBSULQWIULVHUHMHFWOLPLW OIULVHHOLPLW OI?Q
ULVHBUHMHFWBOLPLWULVHBHBOLPLW
LRBSULQWIIDOOUHMHFWOLPLW OIIDOOHOLPLW OI?Q
IDOOBUHMHFWBOLPLWIDOOBHBOLPLW
`
`
DFFBFORVH
`
)LJXUH³8VLQJDFFBIHWFKBSXOVHUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBUDQJH
DFFBIHWFKBUDQJH
6\QRSVLV
*HWWKHPRVWVLJQLÀFDQWELWDQGOHDVWVLJQLÀFDQWELWUDQJHYDOXHVIRUDYHFWRU
6\QWD[
DFFBIHWFKBUDQJHYHFWRUBKDQGOHPVEOVE
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
ERRO
'HVFULSWLRQ
=HURLIVXFFHVVIXOQRQ]HURXSRQHUURU
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
YHFWRUBKDQGOH
LQW
PVE
3RLQWHUWRDQLQWHJHUYDULDEOHWRKROGWKHPRVWVLJQLÀFDQW
ELWRIYHFWRUBKDQGOH
LQW
OVE
3RLQWHUWRDQLQWHJHUYDULDEOHWRKROGWKHOHDVWVLJQLÀFDQWELW
RIYHFWRUBKDQGOH
+DQGOHWRDYHFWRUQHWRUUHJLVWHU
8VHDFFBIHWFKBVL]HWRJHWWKHQXPEHURIELWVLQDYHFWRU
7KH$&&URXWLQHDFFBIHWFKBUDQJHVKDOOREWDLQWKHPRVWVLJQLÀFDQWELWPVEDQGOHDVWVLJQLÀFDQWELWOVEQXPEHUV
RIDYHFWRU
7KHPVEVKDOOEHWKHOHIWUDQJHHOHPHQWZKLOHWKHOVEVKDOOEHWKHULJKWUDQJHHOHPHQWLQWKH9HULORJ+'/VRXUFHFRGH
7KHH[DPSOHVKRZQLQ)LJXUHWDNHVDKDQGOHWRDPRGXOHLQVWDQFHDVLWVLQSXW,WWKHQXVHVDFFBIHWFKBUDQJH
WRGLVSOD\WKHQDPHDQGUDQJHRIHDFKYHFWRUQHWIRXQGLQWKHPRGXOHDVQDPH!>PVE!OVE!@
GLVSOD\BYHFWRUBQHWV
^
KDQGOHPRG DFFBKDQGOHBWIDUJ
KDQGOHQHW
LQWPVEOVE
`
LRBSULQWI´9HFWRUQHWVLQPRGXOHV?Qµ
DFFBIHWFKBIXOOQDPHPRG
QHW QXOO
ZKLOHQHW DFFBQH[WBQHWPRGQHW
LIDFFBREMHFWBRIBW\SHQHWDFF9HFWRU
^
DFFBIHWFKBUDQJHQHWPVEOVE
LRBSULQWI´V>GG@?Qµ
DFFBIHWFKBQDPHQHWPVEOVE
`
)LJXUH³8VLQJDFFBIHWFKBUDQJH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBVL]H
DFFBIHWFKBVL]H
6\QRSVLV
*HWWKHELWVL]HRIDQHWUHJLVWHURUSRUW
6\QWD[
DFFBIHWFKBVL]HREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
LQW
'HVFULSWLRQ
1XPEHURIELWVLQWKHQHWUHJLVWHURUSRUW
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHWRDQHWUHJLVWHUSRUWRULQWHJHURUDELWVHOHFW
WKHUHRI
7KH$&&URXWLQHDFFBIHWFKBVL]HVKDOOUHWXUQWKHQXPEHURIELWVRIDQHWUHJLVWHURUSRUW
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBIHWFKBVL]HWRGLVSOD\WKHVL]HRIDYHFWRUQHW
LQFOXGHDFFBXVHUK
YRLG GLVSOD\BYHFWRUBVL]H
^
KDQGOH
QHWBKDQGOH
LQW
VL]HBLQBELWV
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWILUVWDUJXPHQWSDVVHGWRXVHUGHILQHGV\VWHPWDVN
DVVRFLDWHGZLWKWKLVURXWLQH
QHWBKDQGOH DFFBKDQGOHBWIDUJ
`
LIQHWLVDYHFWRUILQGDQGGLVSOD\LWVVL]HLQELWV
LIDFFBREMHFWBRIBW\SHQHWBKDQGOHDFF9HFWRU
^
VL]HBLQBELWV DFFBIHWFKBVL]HQHWBKDQGOH
LRBSULQWI1HWVLVDYHFWRURIVL]HG?Q
DFFBIHWFKBIXOOQDPHQHWBKDQGOHVL]HBLQBELWV
`
HOVH
LRBSULQWI1HWVLVQRWDYHFWRUQHW?Q
DFFBIHWFKBIXOOQDPHQHWBKDQGOH
)LJXUH³8VLQJDFFBIHWFKBVL]H
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBWIDUJDFFBIHWFKBLWIDUJ
DFFBIHWFKBWIDUJDFFBIHWFKBLWIDUJ
6\QRSVLV
*HWWKHYDOXHRIWKHVSHFLÀHGDUJXPHQWRIWKHV\VWHPWDVNRUIXQFWLRQDVVRFLDWHGZLWKWKH3/,DSSOLFDWLRQWKH
YDOXHLVUHWXUQHGDVDGRXEOHSUHFLVLRQQXPEHU
6\QWD[
DFFBIHWFKBWIDUJDUJXPHQWBQXPEHU
DFFBIHWFKBLWIDUJDUJXPHQWBQXPEHUWILQVW
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
GRXEOH
'HVFULSWLRQ
7KHYDOXHRIWKHWDVNIXQFWLRQDUJXPHQWUHWXUQHGDVDGRXEOHSUHFLVLRQQXPEHU
7\SH
1DPH
'HVFULSWLRQ
LQW
DUJXPHQWBQXPEHU
,QWHJHUQXPEHUWKDWUHIHUHQFHVWKHV\VWHPWDVNRUIXQFWLRQ
DUJXPHQWE\LWVSRVLWLRQLQWKHDUJXPHQWOLVW
KDQGOH
WÀQVW
+DQGOHWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHDFFBIHWFKBWIDUJBLQWRUDFFBIHWFKBLWIDUJBLQWWRJHWWKHWDVNIXQFWLRQDUJXPHQWYDOXHDVDQLQWHJHU
8VHDFFBIHWFKBWIDUJBVWURUDFFBIHWFKBLWIDUJBVWUWRJHWWKHWDVNIXQFWLRQDUJXPHQWYDOXHDVDVWULQJ
8VHDFFBKDQGOHBWÀQVWWRJHWDKDQGOHWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH$&& URXWLQH DFFBIHWFKBWIDUJ VKDOO UHWXUQ WKH YDOXH RI DUJXPHQWV SDVVHG WR WKH FXUUHQW LQVWDQFH RI D XVHU
GHÀQHGV\VWHPWDVNRUIXQFWLRQ7KH$&&URXWLQHDFFBIHWFKBLWIDUJVKDOOUHWXUQWKHYDOXHRIDUJXPHQWVSDVVHGWRD
VSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQXVLQJDKDQGOHWRWKHRWKHUWDVNRUIXQFWLRQ7KHYDOXHLV
UHWXUQHGDVDGRXEOHSUHFLVLRQÁRDWLQJSRLQWQXPEHU
$UJXPHQWQXPEHUVVKDOOVWDUWDWRQHDQGLQFUHDVHIURPOHIWWRULJKWLQWKHRUGHUWKDWWKH\DSSHDULQWKHV\VWHPWDVNRU
IXQFWLRQFDOO
,IDQDUJXPHQWQXPEHULVSDVVHGLQWKDWLVRXWRIUDQJHIRUWKHQXPEHURIDUJXPHQWVLQWKHXVHUGHÀQHGV\VWHPWDVN
IXQFWLRQFDOODFFBIHWFKBWIDUJDQGDFFBIHWFKBLWIDUJVKDOOUHWXUQDYDOXHRIDQGJHQHUDWHDZDUQLQJPHVVDJH
LIZDUQLQJVDUHHQDEOHG1RWHWKDWWKHDFFBHUURUBIODJLVQRWVHWIRUDQRXWRIUDQJHLQGH[QXPEHU
,I D XVHUGHÀQHG V\VWHP WDVNIXQFWLRQ DUJXPHQW WKDW GRHV QRW UHSUHVHQW D YDOXHG REMHFW LV UHIHUHQFHG
DFFBIHWFKBWIDUJDQGDFFBIHWFKBLWIDUJVKDOOUHWXUQDYDOXHRIDQGJHQHUDWHDZDUQLQJPHVVDJHLIZDUQLQJVDUH
HQDEOHG/LWHUDOQXPEHUVQHWVUHJLVWHUVLQWHJHUYDULDEOHVDQGUHDOYDULDEOHVDOOKDYHYDOXHV2EMHFWVVXFKDVPRGXOH
LQVWDQFH QDPHV GR QRW KDYH D YDOXH 1RWH WKDW WKH DFFBHUURUBIODJ LV QRW VHW ZKHQ D QRQYDOXHG DUJXPHQW LV
UHIHUHQFHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBIHWFKBWIDUJ DFFBIHWFKBWIDUJBLQW DQG DFFBIHWFKBWIDUJBVWU WR
UHWXUQWKHYDOXHRIWKHÀUVWDUJXPHQWRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
LQFOXGHDFFBXVHUK
LQFOXGHYHULXVHUK
GLVSOD\BDUJBYDOXH
^
LQW
DUJBW\SH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQE
FKHFNW\SHRIDUJXPHQW
LRBSULQWI$UJXPHQWYDOXHLV
`
VZLWFKWIBW\SHS
^
FDVHWIBUHDGRQO\UHDOFDVHWIBUHDGZULWHUHDO
LRBSULQWII?QDFFBIHWFKBWIDUJ
EUHDN
FDVHWIBUHDGRQO\FDVHWIBUHDGZULWH
LRBSULQWIG?QDFFBIHWFKBWIDUJBLQW
EUHDN
FDVHWIBVWULQJ
LRBSULQWIV?QDFFBIHWFKBWIDUJBVWU
EUHDN
GHIDXOW
LRBSULQWI(UURULQDUJXPHQWVSHFLILFDWLRQ?Q
EUHDN
`
DFFBFORVH
UHWXUQVYDOXHDVD
GRXEOHSUHFLVLRQ
IORDWLQJSRLQWQXPEHU
UHWXUQVYDOXHDVDQ
LQWHJHUQXPEHU
UHWXUQVYDOXHDVD
SRLQWHUWRD
FKDUDFWHUVWULQJ
)LJXUH³8VLQJDFFBIHWFKBWIDUJDFFBIHWFKBWIDUJBLQWDQGDFFBIHWFKBWIDUJBVWU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBWIDUJBLQWDFFBIHWFKBLWIDUJBLQW
DFFBIHWFKBWIDUJBLQWDFFBIHWFKBLWIDUJBLQW
6\QRSVLV
*HWWKHYDOXHRIWKHVSHFLÀHGDUJXPHQWRIWKHV\VWHPWDVNRUIXQFWLRQDVVRFLDWHGZLWKWKH3/,DSSOLFDWLRQWKH
YDOXHLVUHWXUQHGDVDQLQWHJHUQXPEHU
6\QWD[
DFFBIHWFKBWIDUJBLQWDUJXPHQWBQXPEHU
DFFBIHWFKBLWIDUJBLQWDUJXPHQWBQXPEHUWILQVW
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHYDOXHRIWKHWDVNIXQFWLRQDUJXPHQWUHWXUQHGDVDQLQWHJHUQXPEHU
7\SH
1DPH
'HVFULSWLRQ
LQW
DUJXPHQWBQXPEHU
,QWHJHUQXPEHUWKDWUHIHUHQFHVWKHV\VWHPWDVNRUIXQFWLRQ
DUJXPHQWE\LWVSRVLWLRQLQWKHDUJXPHQWOLVW
KDQGOH
WÀQVW
+DQGOHWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHDFFBIHWFKBWIDUJRUDFFBIHWFKBLWIDUJWRJHWWKHWDVNIXQFWLRQDUJXPHQWYDOXHDVDGRXEOH
8VHDFFBIHWFKBWIDUJBVWURUDFFBIHWFKBLWIDUJBVWUWRJHWWKHWDVNIXQFWLRQDUJXPHQWYDOXHDVDVWULQJ
8VHDFFBKDQGOHBWÀQVWWRJHWDKDQGOHWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH$&&URXWLQHDFFBIHWFKBWIDUJBLQWVKDOOUHWXUQWKHYDOXHRIDUJXPHQWVSDVVHGWRWKHFXUUHQWXVHUGHÀQHGV\VWHP
WDVN RU IXQFWLRQ7KH$&& URXWLQH DFFBIHWFKBLWIDUJBLQW VKDOO UHWXUQ WKH YDOXH RI DUJXPHQWV SDVVHG WR D VSHFLÀF
LQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNDQGIXQFWLRQXVLQJDKDQGOHWRWKHWDVNRUIXQFWLRQ7KHYDOXHLVUHWXUQHGDVDQ
LQWHJHUQXPEHU
$UJXPHQWQXPEHUVVKDOOVWDUWDWRQHDQGLQFUHDVHIURPOHIWWRULJKWLQWKHRUGHUWKDWWKH\DSSHDULQWKHV\VWHPWDVNRU
IXQFWLRQFDOO
,IDQDUJXPHQWQXPEHULVSDVVHGLQWKDWLVRXWRIUDQJHIRUWKHQXPEHURIDUJXPHQWVLQWKHXVHUGHÀQHGV\VWHPWDVN
IXQFWLRQ FDOO DFFBIHWFKBWIDUJBLQW DQG DFFBIHWFKBLWIDUJBLQW VKDOO UHWXUQ D YDOXH RI DQG JHQHUDWH D ZDUQLQJ
PHVVDJHLIZDUQLQJVDUHHQDEOHG1RWHWKDWWKHDFFBHUURUBIODJLVQRWVHWIRUDQRXWRIUDQJHLQGH[QXPEHU
,I D XVHUGHÀQHG V\VWHP WDVNIXQFWLRQ DUJXPHQW WKDW GRHV QRW UHSUHVHQW D YDOXHG REMHFW LV UHIHUHQFHG
DFFBIHWFKBWIDUJBLQW DQG DFFBIHWFKBLWIDUJBLQW VKDOO UHWXUQ D YDOXH RI DQG JHQHUDWH D ZDUQLQJ PHVVDJH LI
ZDUQLQJVDUHHQDEOHG/LWHUDOQXPEHUVQHWVUHJLVWHUVLQWHJHUYDULDEOHVDQGUHDOYDULDEOHVDOOKDYHYDOXHV2EMHFWV
VXFKDVPRGXOHLQVWDQFHQDPHVGRQRWKDYHDYDOXH1RWHWKDWWKHDFFBHUURUBIODJLVQRWVHWZKHQDQRQYDOXHG
DUJXPHQWLVUHIHUHQFHG
5HIHUWR)LJXUHLQIRUDQH[DPSOHRIXVLQJDFFBIHWFKBWIDUJBLQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBWIDUJBVWUDFFBIHWFKBLWIDUJBVWU
DFFBIHWFKBWIDUJBVWUDFFBIHWFKBLWIDUJBVWU
6\QRSVLV
*HWWKHYDOXHRIWKHVSHFLÀHGDUJXPHQWRIWKHV\VWHPWDVNRUIXQFWLRQDVVRFLDWHGZLWKWKH3/,DSSOLFDWLRQWKH
YDOXHLVUHWXUQHGDVDSRLQWHUWRDFKDUDFWHUVWULQJ
6\QWD[
DFFBIHWFKBWIDUJBVWUDUJXPHQWBQXPEHU
DFFBIHWFKBLWIDUJBVWUDUJXPHQWBQXPEHUWILQVW
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
7KHYDOXHRIWKHWDVNIXQFWLRQDUJXPHQWUHWXUQHGDVDSRLQWHUWRDFKDUDFWHUVWULQJ
7\SH
1DPH
'HVFULSWLRQ
LQW
DUJXPHQWBQXPEHU
,QWHJHUQXPEHUWKDWUHIHUHQFHVWKHV\VWHPWDVNRUIXQFWLRQ
DUJXPHQWE\LWVSRVLWLRQLQWKHDUJXPHQWOLVW
KDQGOH
WÀQVW
+DQGOHWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHDFFBIHWFKBWIDUJRUDFFBIHWFKBLWIDUJWRJHWWKHWDVNIXQFWLRQDUJXPHQWYDOXHDVDGRXEOH
8VHDFFBIHWFKBWIDUJBLQWRUDFFBIHWFKBLWIDUJBLQWWRJHWWKHWDVNIXQFWLRQDUJXPHQWYDOXHDVDQLQWHJHU
8VHDFFBKDQGOHBWÀQVWWRJHWDKDQGOHWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH$&&URXWLQHDFFBIHWFKBWIDUJBVWUVKDOOUHWXUQWKHYDOXHRIDUJXPHQWVSDVVHGWRWKHFXUUHQWLQVWDQFHRIDXVHU
GHÀQHGV\VWHPWDVNRUIXQFWLRQ7KH$&&URXWLQHDFFBIHWFKBLWIDUJBVWUVKDOOUHWXUQWKHYDOXHRIDUJXPHQWVSDVVHG
WRDVSHFLÀFLQVWDQFHRUDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQXVLQJDKDQGOHWRWKHWDVNRUIXQFWLRQ7KHYDOXHVKDOO
EHUHWXUQHGDVDSRLQWHUWRDFKDUDFWHUVWULQJ7KHUHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH$&&LQWHUQDOVWULQJ
EXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ$&&URXWLQHV
$UJXPHQWQXPEHUVVKDOOVWDUWDWRQHDQGLQFUHDVHIURPOHIWWRULJKWLQWKHRUGHUWKDWWKH\DSSHDULQWKHV\VWHPWDVNRU
IXQFWLRQFDOO
,IDQDUJXPHQWQXPEHULVSDVVHGLQWKDWLVRXWRIUDQJHIRUWKHQXPEHURIDUJXPHQWVLQWKHXVHUGHÀQHGV\VWHPWDVN
IXQFWLRQFDOODFFBIHWFKBWIDUJBVWUDQGDFFBIHWFKBLWIDUJBVWUVKDOOUHWXUQDYDOXHRIQXOODQGJHQHUDWHDZDUQLQJ
PHVVDJHLIZDUQLQJVDUHHQDEOHG1RWHWKDWWKHDFFBHUURUBIODJLVQRWVHWIRUDQRXWRIUDQJHLQGH[QXPEHU
,I D XVHUGHÀQHG V\VWHP WDVNIXQFWLRQ DUJXPHQW WKDW GRHV QRW UHSUHVHQW D YDOXHG REMHFW LV UHIHUHQFHG
DFFBIHWFKBWIDUJBVWUDQGDFFBIHWFKBLWIDUJBVWUVKDOOUHWXUQDYDOXHRIQXOODQGJHQHUDWHDZDUQLQJPHVVDJHLI
ZDUQLQJVDUHHQDEOHG/LWHUDOQXPEHUVQHWVUHJLVWHUVLQWHJHUYDULDEOHVDQGUHDOYDULDEOHVDOOKDYHYDOXHV2EMHFWV
VXFKDVPRGXOHLQVWDQFHQDPHVGRQRWKDYHDYDOXH1RWHWKDWWKHDFFBHUURUBIODJLVQRWVHWZKHQDQRQYDOXHG
DUJXPHQWLVUHIHUHQFHG
5HIHUWR)LJXUHLQIRUDQH[DPSOHRIXVLQJDFFBIHWFKBWIDUJBVWU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBWLPHVFDOHBLQIR
DFFBIHWFKBWLPHVFDOHBLQIR
6\QRSVLV
*HWWLPHVFDOHLQIRUPDWLRQIRUDQREMHFWRUIRUDQDFWLYHWLPHIRUPDWV\VWHPWDVNLQYRFDWLRQ
6\QWD[
DFFBIHWFKBWLPHVFDOHBLQIRREMHFWBKDQGOHWLPHVFDOHBS
7\SH
5HWXUQV
'HVFULSWLRQ
YRLG
$UJXPHQWV
5HODWHG
URXWLQHV
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDPRGXOHLQVWDQFHPRGXOHGHÀQLWLRQ3/,XVHU
GHÀQHGV\VWHPWDVNIXQFWLRQFDOORUQXOO
SBWLPHVFDOHBLQIR
WLPHVFDOHBS
3RLQWHUWRDYDULDEOHGHÀQHGDVDVBWLPHVFDOHBLQIR
VWUXFWXUH
8VHDFFBIHWFKBSUHFLVLRQWRIHWFKWKHVPDOOHVWWLPHVFDOHSUHFLVLRQLQDGHVLJQ
7KH$&& URXWLQHDFFBIHWFKBWLPHVFDOHBLQIR VKDOO REWDLQ WKH WLPHVFDOH LQIRUPDWLRQ IRU DQ REMHFW RU IRU DQ DFWLYH
WLPHIRUPDWEXLOWLQV\VWHPWDVNLQYRFDWLRQ7KHWLPHVFDOHUHWXUQHGVKDOOEHEDVHGRQWKHW\SHRIREMHFWKDQGOH
DVGHÀQHGLQ7DEOH
7DEOH³5HWXUQYDOXHVIURPDFFBIHWFKBWLPHVFDOHBLQIR
,IWKHREMHFWBKDQGOHLV
DFFBIHWFKBWLPHVFDOHBLQIRVKDOOUHWXUQ
$KDQGOHWRDPRGXOHLQVWDQFHRUPRGXOH
GHÀQLWLRQ
7KHWLPHVFDOHIRUWKHFRUUHVSRQGLQJPRGXOHGHILQLWLRQ
$KDQGOHWRDXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQ
7KHWLPHVFDOHIRUWKHFRUUHVSRQGLQJPRGXOHGHILQLWLRQ
WKDWUHSUHVHQWVWKHSDUHQWPRGXOHLQVWDQFHRIWKHREMHFW
QXOO
7KHWLPHVFDOHIRUDQDFWLYHWLPHIRUPDWV\VWHPWDVN
LQYRFDWLRQ
7KHURXWLQHDFFBIHWFKBWLPHVFDOHBLQIRVKDOOUHWXUQDYDOXHWRDQVBWLPHVFDOHBLQIRVWUXFWXUHSRLQWHGWRE\WKH
WLPHVFDOHBSDUJXPHQW7KLVVWUXFWXUHLVGHFODUHGLQWKHÀOHDFFBXVHUKDVVKRZQLQ)LJXUH
W\SHGHIVWUXFWWBWLPHVFDOHBLQIR^
VKRUWXQLW
VKRUWSUHFLVLRQ
`VBWLPHVFDOHBLQIRSBWLPHVFDOHBLQIR
)LJXUH³VBWLPHVFDOHBLQIRGDWDVWUXFWXUH
³ 7KHWHUPXQLWLVDVKRUWLQWHJHUWKDWVKDOOUHSUHVHQWWKHWLPHVFDOHXQLWLQDOOFDVHVRIREMHFW
³ 7KHWHUPSUHFLVLRQLVDVKRUWLQWHJHUWKDWVKDOOUHSUHVHQWWKHWLPHVFDOHSUHFLVLRQ,QWKHFDVHRIDQXOOREMHFW
KDQGOHSUHFLVLRQVKDOOEHWKHQXPEHURIGHFLPDOSRLQWVVSHFLÀHGLQWKHDFWLYHWLPHIRUPDWV\VWHPWDVN
LQYRFDWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHYDOXHUHWXUQHGIRUXQLWDQGSUHFLVLRQVKDOOEHWKHRUGHURIPDJQLWXGHRIVDVVKRZQLQ7DEOH
7DEOH³9DOXHUHWXUQHGE\DFFBIHWFKBWLPHVFDOHBLQIR
,QWHJHUYDOXHUHWXUQHG
7LPHXQLWU
V
V
V
PV
PV
PV
—V
—V
—V
QV
QV
QV
SV
SV
SV
IV
IV
IV
)RUH[DPSOHDFDOOWR
DFFBIHWFKBWLPHVFDOHBLQIRREMWLPHVFDOHBS
:KHUHREMLVGHÀQHGLQDPRGXOHWKDWKDVCWLPHVFDOHXVQVVSHFLÀHGIRULWVGHÀQLWLRQVKDOOUHWXUQ
WLPHVFDOHBS!XQLW
WLPHVFDOHBS!SUHFLVLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBW\SH
DFFBIHWFKBW\SH
6\QRSVLV
*HWWKHW\SHRIDQREMHFW
6\QWD[
DFFBIHWFKBW\SHREMHFWBKDQGOH
7\SH
5HWXUQV
LQW
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
$SUHGHÀQHGLQWHJHUFRQVWDQWIURPWKHOLVWVKRZQLQ
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIWKHREMHFW
8VHDFFBIHWFKBW\SHWRJHWWKHJHQHUDOW\SHFODVVLÀFDWLRQRIDQREMHFW
8VHDFFBIHWFKBW\SHBVWUWRJHWWKHW\SHDVDQFKDUDFWHUVWULQJ
7KH$&&URXWLQHDFFBIHWFKBW\SHVKDOOUHWXUQWKHW\SHRIDQREMHFW7KHW\SHLVDJHQHUDOFODVVLÀFDWLRQRID9HULORJ
+'/REMHFWUHSUHVHQWHGDVDSUHGHÀQHGFRQVWDQWGHÀQHGLQDFFBXVHUK5HIHUWRIRUDOLVWRIDOORIWKHW\SH
FRQVWDQWVWKDWFDQEHUHWXUQHGE\DFFBIHWFKBW\SH
0DQ\9HULORJ +'/ REMHFWV FDQ KDYH D W\SH DQG D IXOOW\SH7KH W\SH RI DQ REMHFW LV LWV JHQHUDO9HULORJ +'/ W\SH
FODVVLÀFDWLRQ7KHIXOOW\SHLVWKHVSHFLÀFW\SHRIWKHREMHFW7DEOHLOOXVWUDWHVWKHGLIIHUHQFHEHWZHHQWKHW\SHRI
DQREMHFWDQGWKHIXOOW\SHRIWKHVDPHREMHFW
7DEOH³7KHGLIIHUHQFHEHWZHHQWKHW\SHDQGWKHIXOOW\SHRIDQREMHFW
)RUDKDQGOHWR
DFFBIHWFKBW\SHVKDOOUHWXUQ
DFFBIHWFKBIXOOW\SHVKDOOUHWXUQ
$VHWXSWLPLQJFKHFN
DFF7FKN
DFF6HWXS
$QDQGJDWHSULPLWLYH
DFF3ULPLWLYH
DFF$QG*DWH
$VHTXHQWLDO8'3
DFF3ULPLWLYH
DFF6HT3ULP
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBIHWFKBW\SH WR LGHQWLI\ WKH W\SH RI DQ REMHFW WKH IXQFWLRQV
GLVSOD\BSULPLWLYHBW\SHDQGGLVSOD\BWLPLQJBFKHFNBW\SHXVHGLQWKLVH[DPSOHDUHSUHVHQWHGLQWKH
XVDJHH[DPSOHVLQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
GLVSOD\BREMHFWBW\SH
^
KDQGOHREMHFWBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
REMHFWBKDQGOH DFFBKDQGOHBWIDUJ
`
GLVSOD\REMHFWW\SH
VZLWFKDFFBIHWFKBW\SHREMHFWBKDQGOH
^
FDVHDFF0RGXOH
LRBSULQWI2EMHFWLVDPRGXOH?Q
EUHDN
FDVHDFF1HW
LRBSULQWI2EMHFWLVDQHW?Q
EUHDN
FDVHDFF3DWK
LRBSULQWI2EMHFWLVDPRGXOHSDWK?Q
EUHDN
FDVHDFF3RUW
LRBSULQWI2EMHFWLVDPRGXOHSRUW?Q
EUHDN
FDVHDFF3ULPLWLYH
GLVSOD\BSULPLWLYHBW\SHREMHFWBKDQGOH
EUHDN
FDVHDFF7FKN
GLVSOD\BWLPLQJBFKHFNBW\SHREMHFWBKDQGOH
EUHDN
FDVHDFF7HUPLQDO
LRBSULQWI2EMHFWLVDSULPLWLYHWHUPLQDO?Q
EUHDN
`
DFFBFORVH
)LJXUH³8VLQJDFFBIHWFKBW\SH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIHWFKBW\SHBVWU
DFFBIHWFKBW\SHBVWU
6\QRSVLV
*HWDVWULQJWKDWLQGLFDWHVWKHW\SHRILWVDUJXPHQW
6\QWD[
DFFBIHWFKBW\SHBVWUW\SH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
FKDU
3RLQWHUWRDFKDUDFWHUVWULQJ
7\SH
1DPH
'HVFULSWLRQ
LQWHJHU
W\SH
$SUHGHÀQHGLQWHJHUFRQVWDQWWKDWVWDQGVIRUDQREMHFWW\SH
RUIXOOW\SH
8VHDFFBIHWFKBW\SHWRJHWWKHW\SHRIDQREMHFWDVDQLQWHJHUFRQVWDQW
8VHDFFBIHWFKBIXOOW\SHWRJHWWKHIXOOW\SHRIDQREMHFWDVDQLQWHJHUFRQVWDQW
7KH$&&URXWLQHDFFBIHWFKBW\SHBVWUVKDOOUHWXUQWKHFKDUDFWHUVWULQJWKDWVSHFLÀHVWKHW\SHRILWVDUJXPHQW7KH
DUJXPHQW SDVVHG WR DFFBIHWFKBW\SHBVWU VKRXOG EH DQ LQWHJHU YDOXH UHWXUQHG IURP HLWKHU DFFBIHWFKBW\SH RU
DFFBIHWFKBIXOOW\SH
7KHUHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH$&&LQWHUQDOVWULQJEXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ$&&
URXWLQHV
,QWKHH[DPSOHVKRZQLQ)LJXUHDKDQGOHWRDQDUJXPHQWLVSDVVHGWRD&DSSOLFDWLRQ7KHDSSOLFDWLRQGLVSOD\V
WKHQDPHRIWKHREMHFWDQGWKHW\SHRIWKHREMHFW
LQFOXGHDFFBXVHUK
YRLG
GLVSOD\BREMHFWBW\SHREMHFW
KDQGOH
REMHFW
^
LQW W\SH DFFBIHWFKBW\SHREMHFW
LRBSULQWI2EMHFWVLVRIW\SHV?Q
DFFBIHWFKBIXOOQDPHREMHFW
DFFBIHWFKBW\SHBVWUW\SH
`
)LJXUH³8VLQJDFFBIHWFKBW\SHBVWU
,QWKLVH[DPSOHLIWKHDSSOLFDWLRQLVSDVVHGDKDQGOHWRDQREMHFWQDPHGWRSSDUDPWKHDSSOLFDWLRQVKDOOSURGXFH
WKHIROORZLQJRXWSXW
2EMHFWWRSSDUDPLVRIW\SHDFF3DUDPHWHU
7KHRXWSXWVWULQJDFF3DUDPHWHULVWKHQDPHRIWKHLQWHJHUFRQVWDQWWKDWUHSUHVHQWVWKHSDUDPHWHUW\SH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBIHWFKBYDOXH
DFFBIHWFKBYDOXH
6\QRSVLV
*HWWKHORJLFRUVWUHQJWKYDOXHRIDQHWUHJLVWHURUYDULDEOH
6\QWD[
DFFBIHWFKBYDOXHREMHFWBKDQGOHIRUPDWBVWULQJYDOXH
7\SH
5HWXUQV
FKDU
3RLQWHUWRDFKDUDFWHUVWULQJ
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
TXRWHGVWULQJRU
FKDU
IRUPDWBVWULQJ
$OLWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKRQHRIWKH
IROORZLQJVSHFLÀHUVIRUIRUPDWWLQJWKHUHWXUQYDOXH
E G K R Y VBDFFBYDOXH
YDOXH
3RLQWHUWRDVWUXFWXUHZLWKWKHUHWULHYHGORJLFYDOXHVDQG
VWUHQJWKXVHGZKHQIRUPDWVWULQJLVVKRXOGEHVHW
WRQXOOZKHQQRWXVHG
$UJXPHQWV
2SWLRQDO
5HODWHG
URXWLQHV
'HVFULSWLRQ
'HVFULSWLRQ
8VHDFFBIHWFKBVL]HWRGHWHUPLQHKRZELWVZLGHWKHREMHFWLV
8VHDFFBVHWBYDOXHWRSXWDORJLFYDOXHRQWKHREMHFW
7KH $&& URXWLQH DFFBIHWFKBYDOXH VKDOO UHWXUQ ORJLF VLPXODWLRQ YDOXHV IRU VFDODU RU YHFWRU QHWV UHJLVWHUV DQG
YDULDEOHVDFFBIHWFKBYDOXHVKDOOUHWXUQVWUHQJWKYDOXHVIRUVFDODUQHWVDQGVFDODUUHJLVWHUVRQO\
7KHURXWLQHDFFBIHWFKBYDOXHVKDOOUHWXUQWKHORJLFDQGVWUHQJWKYDOXHVLQRQHRIWZRZD\V
³ 7KHYDOXHFDQEHUHWXUQHGDVDVWULQJ
³ 7KHYDOXHFDQEHUHWXUQHGDVDQDYDOEYDOSDLULQDSUHGHÀQHGVWUXFWXUH
7KHUHWXUQPHWKRGXVHGE\DFFBIHWFKBYDOXHVKDOOEHFRQWUROOHGE\WKHIRUPDWBVWULQJDUJXPHQWDVVKRZQLQ7DEOH
7DEOH³+RZDFFBIHWFKBYDOXHUHWXUQVYDOXHV
IRUPDWBVSHFLÀHU
5HWXUQIRUPDW
E
ELQDU\
G
GHFLPDO
K
KH[DGHFLPDO
R
RFWDO
Y
VWUHQJWK
DYDOEYDOSDLU
'HVFULSWLRQ
9DOXHVKDOOEHUHWULHYHGDVDVWULQJDQGDFKDUDFWHUSRLQWHUWRWKH
VWULQJVKDOOUHWXUQHG
9DOXHVKDOOUHWULHYHGDQGSODFHGLQDVWUXFWXUHYDULDEOHSRLQWHGWR
E\WKHRSWLRQDOYDOXHDUJXPHQW
1RWHWKDWVWULQJVDUHSODFHGLQDWHPSRUDU\EXIIHUDQGWKH\VKRXOGEHSUHVHUYHGLIQRWXVHGLPPHGLDWHO\5HIHUWR
IRUGHWDLOVRQSUHVHUYLQJVWULQJV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
:KHQ D IRUPDWBVWULQJ RI ´µ LV VSHFLÀHG DFFBIHWFKBYDOXH VKDOO UHWULHYH WKH ORJLF YDOXH DQG VWUHQJWK WR D
SUHGHÀQHGVWUXFWXUHVBDFFBYDOXHZKLFKLVGHÀQHGLQDFFBXVHUKDQGLVVKRZQEHORZ>QRWHWKDWWKLVVWUXFWXUH
GHÀQLWLRQLVDOVRXVHGZLWKWKHDFFBVHWBYDOXHURXWLQH@
W\SHGHIVWUXFWWBVHWYDOBYDOXH
^
LQWIRUPDW
XQLRQ
^
FKDUVWU
LQWVFDODU
LQWLQWHJHU
GRXEOHUHDO
SBDFFBYHFYDOYHFWRU
`YDOXH
`VBVHWYDOBYDOXHSBVHWYDOBYDOXHVBDFFBYDOXHSBDFFBYDOXH
)LJXUH³VBDFFBYDOXHVWUXFWXUH
7RXVHWKHIRUPDWBVWULQJWRUHWULHYHYDOXHVWRDVWUXFWXUHUHTXLUHVWKHIROORZLQJVWHSV
D
$VWUXFWXUHYDULDEOHVKDOOÀUVWEHGHFODUHGRIW\SHVBDFFBYDOXH
E
7KHIRUPDWÀHOGRIWKHVWUXFWXUHKDVWREHVHWWRDSUHGHÀQHGFRQVWDQW7KHIRUPDWFRQWUROVZKLFKÀHOGVLQWKH
VBDFFBYDOXHVWUXFWXUHVKDOOEHXVHGZKHQDFFBIHWFKBYDOXHUHWXUQVWKHYDOXH7KHSUHGHÀQHGFRQVWDQWV
IRUWKHIRUPDWVKDOOEHRQHRIWKHFRQVWDQWVVKRZQLQ7DEOH
F
7KHVWUXFWXUHYDULDEOHKDVWREHSDVVHGDVWKHWKLUGDUJXPHQWWRDFFBIHWFKBYDOXH
7DEOH³)RUPDWFRQVWDQWVIRUWKHVBDFFBYDOXHVWUXFWXUH
)RUPDWFRQVWDQW
DFFBIHWFKBYDOXHVKDOOUHWXUQWKH
YDOXHWRWKHVBDFFBYDOXHXQLRQÀHOG
DFF%LQ6WU9DO
VWU
DFF2FW6WU9DO
VWU
DFF'HF6WU9DO
VWU
DFF+H[6WU9DO
VWU
DFF6FDODU9DO
VFDODU
DFF,QW9DO
LQWHJHU
DFF5HDO9DO
UHDO
DFF6WULQJ9DO
VWU
DFF9HFWRU9DO
YHFWRU
)RU H[DPSOH FDOOLQJ DFFBIHWFKBYDOXH ZLWK WKH IROORZLQJ VHWXS ZRXOG UHWXUQ D VWULQJ LQ WKH YDOXHVWU ÀHOG
7KLVLVHVVHQWLDOO\WKHVDPHDVXVLQJDFFBIHWFKBYDOXHZLWKDEIRUPDWVWULQJ
VBDFFBYDOXHYDOXH
YDOXHIRUPDW DFF%LQ6WU9DO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YRLGDFFBIHWFKBYDOXH1HWYDOXH
,IWKHIRUPDWÀHOGIRUDFFBIHWFKBYDOXHLVVHWWRDFF9HFWRU9DOWKHQWKHYDOXHVKDOOEHSODFHGLQWKHUHFRUGVSRLQWHG
WRE\WKHYDOXHÀHOG7KHYDOXHÀHOGVKDOOEHDSRLQWHUWRDQDUUD\RIRQHRUPRUHVBDFFBYHFYDOVWUXFWXUHV7KH
VBDFFBYHFYDO VWUXFWXUH LV GHÀQHG LQ WKH DFFBXVHUK ÀOH DQG LV OLVWHG LQ )LJXUH 7KH VWUXFWXUH VKDOO
FRQWDLQWZRLQWHJHUVDYDODQGEYDO(DFKVBDFFBYHFYDOUHFRUGVKDOOUHSUHVHQWELWVRIDYHFWRU7KHHQFRGLQJ
IRUHDFKELWYDOXHLVVKRZQLQ7DEOH
W\SHGHIVWUXFWWBDFFBYHFYDO
^
LQWDYDO
LQWEYDO
`VBDFFBYHFYDOSBDFFBYHFYDO
)LJXUH³VBDFFBYHFYDOVWUXFWXUH
7DEOH³(QFRGLQJRIELWVLQWKHVBDFFBYHFYDOVWUXFWXUH
DYDO
EYDO
9DOXH
=
;
7KHDUUD\RIVBDFFBYHFYDOVWUXFWXUHVVKDOOFRQWDLQDUHFRUGIRUHYHU\ELWVRIWKHYHFWRUSOXVDUHFRUGIRUDQ\
UHPDLQLQJELWV,IDYHFWRUKDV1ELWVWKHQWKHUHVKDOOEH1VBDFFBYHFYDOUHFRUGV7KHURXWLQH
DFFBIHWFKBVL]HFDQEHXVHGWRGHWHUPLQHWKHYDOXHRI17KHOVERIWKHYHFWRUVKDOOEHUHSUHVHQWHGE\WKHOVERIWKH
ÀUVWUHFRUGRIVBDFFBYHFYDODUUD\7KHUGELWRIWKHYHFWRUVKDOOEHUHSUHVHQWHGE\WKHOVERIWKHVHFRQGUHFRUG
RIWKHDUUD\DQGVRRQ6HH)LJXUHIRUDQH[DPSOHRIDFFBIHWFKBYDOXHXVHGLQWKLVZD\
1RWHWKDWZKHQXVLQJDYDOEYDOSDLUVWKHVBDFFBYDOXHUHFRUGDQGWKHDSSURSULDWHO\VL]HGVBDFFBYHFYDODUUD\
VKDOOÀUVWEHGHFODUHG6HWWLQJWKHVHFRQGSDUDPHWHUWRDFFBIHWFKBYDOXHWR´µDQGWKHWKLUGSDUDPHWHUWR
QXOOVKDOOEHDQHUURU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHDSSOLFDWLRQVKRZQLQ)LJXUHXVHVDFFBIHWFKBYDOXHWRUHWULHYHWKHORJLFYDOXHVRIDOOQHWVLQD
PRGXOHDVVWULQJV
LQFOXGHDFFBXVHUK
GLVSOD\BQHWBYDOXHV
^
KDQGOH PRGQHW
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
JHWKDQGOHIRUPRGXOH
PRG DFFBKDQGOHBWIDUJ
JHWDOOQHWVLQWKHPRGXOHDQGGLVSOD\WKHLUYDOXHV
LQELQDU\IRUPDW
QHW QXOO
ZKLOHQHW DFFBQH[WBQHWPRGQHW
LRBSULQWI1HWYDOXHV?QDFFBIHWFKBYDOXHQHWEQXOO
`
DFFBFORVH
)LJXUH³8VLQJDFFBIHWFKBYDOXHWRUHWULHYHWKHORJLFYDOXHVDVVWULQJV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHH[DPSOHLQ)LJXUHXVHVDFFBIHWFKBYDOXHWRUHWULHYHDYDOXHLQWRDVWUXFWXUHDQGWKHQSULQWVWKHYDOXH7KH
H[DPSOHDVVXPHVWKHDSSOLFDWLRQP\BIHWFKBYDOXHLVFDOOHGIURPWKHIROORZLQJXVHUGHÀQHGV\VWHPWDVN
P\BIHWFKBYDOXH5
LQFOXGHDFFBXVHUK
LQWP\BIHWFKBYDOXH
^
KDQGOHUHJ DFFBKDQGOHBWIDUJ
LQWVL]H DFFBIHWFKBVL]HUHJ
VBDFFBYDOXHYDOXH
LQWLQGH[PLQBVL]H
VWDWLFFKDUWDEOH>@ ^·····]··[·`
VWDWLFFKDURXW6WULQJ>@
LRBSULQWI7KHYDOXHRIVLVDFFBIHWFKBQDPHUHJ
YDOXHIRUPDW DFF9HFWRU9DO
YDOXHYDOXHYHFWRU SBDFFBYHFYDOPDOORFVL]HVL]HRIVBDFFBYHFYDO
YRLGDFFBIHWFKBYDOXHUHJ´µYDOXH
IRULQGH[ VL]HLQGH[! LQGH[
^
UHJLVWHULQWLQGH[
UHJLVWHULQWDELWV YDOXHYDOXHYHFWRU>LQGH[@DYDO
UHJLVWHULQWEELWV YDOXHYDOXHYHFWRU>LQGH[@EYDO
LILQGH[ VL]H
^
PLQBVL]H DFFBIHWFKBVL]HUHJ
LIPLQBVL]H
PLQBVL]H `
HOVH
PLQBVL]H RXW6WULQJ>PLQBVL]H@ ·?·
PLQBVL]H
RXW6WULQJ>PLQBVL]H@ WDEOH>EELWV_DELWV@
DELWV!! IRULQGH[ PLQBVL]HLQGH[! LQGH[
^
RXW6WULQJ>LQGH[@ WDEOH>EELWV_DELWV@
DELWV!! EELWV!! `
LRBSULQWIVRXW6WULQJ
^
LRBSULQWI?Q
UHWXUQ
`
)LJXUH³8VLQJDFFBIHWFKBYDOXHWRUHWULHYHYDOXHVLQWRDGDWDVWUXFWXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBIUHH
DFFBIUHH
6\QRSVLV
)UHHVPHPRU\DOORFDWHGE\DFFBFROOHFW
6\QWD[
DFFBIUHHKDQGOHBDUUD\BSRLQWHU
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
YRLG
'HVFULSWLRQ
1RUHWXUQ
7\SH
1DPH
KDQGOH
+DQGOHBDUUD\BSRLQWHU
'HVFULSWLRQ
3RLQWHUWRWKHDUUD\RIKDQGOHVDOORFDWHGE\DFFBFROOHFW
8VHDFFBFROOHFWWRFROOHFWKDQGOHVUHWXUQHGE\DFFBQH[WBURXWLQHV
7KH$&&URXWLQHDFFBIUHHVKDOOGHDOORFDWHPHPRU\WKDWZDVDOORFDWHGE\WKHURXWLQHDFFBFROOHFW
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBIUHH WR GHDOORFDWH PHPRU\ DOORFDWHG E\ DFFBFROOHFW WR FROOHFW
KDQGOHVWRDOOQHWVLQDPRGXOH
LQFOXGHDFFBXVHUK
GLVSOD\BQHWV
^
KDQGOH
OLVWBRIBQHWVPRGXOHBKDQGOH
LQW
QHWBFRXQWL
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
FROOHFWDQGGLVSOD\DOOQHWVLQWKHPRGXOH
OLVWBRIBQHWV DFFBFROOHFWDFFBQH[WBQHWPRGXOHBKDQGOHQHWBFRXQW
IRUL LQHWBFRXQWL
LRBSULQWI1HWQDPHLVV?QDFFBIHWFKBQDPHOLVWBRIBQHWV>L@
IUHHPHPRU\XVHGE\DUUD\OLVWBRIBQHWV
DFFBIUHHOLVWBRIBQHWV
`
DFFBFORVH
)LJXUH³8VLQJDFFBIUHH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBE\BQDPH
DFFBKDQGOHBE\BQDPH
6\QRSVLV
*HWWKHKDQGOHWRDQ\QDPHGREMHFWEDVHGRQLWVQDPHDQGVFRSH
6\QWD[
DFFBKDQGOHBE\BQDPHREMHFWBQDPHVFRSHBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
5RXWLQHV
'HVFULSWLRQ
KDQGOH
$KDQGOHWRWKHVSHFLÀHGREMHFW
7\SH
1DPH
'HVFULSWLRQ
TXRWHGVWULQJRU
FKDU
REMHFWBQDPH
/LWHUDOQDPHRIDQREMHFWRUDFKDUDFWHUVWULQJSRLQWHUWRWKH
REMHFWQDPH
KDQGOH
VFRSHBKDQGOH
+DQGOHWRVFRSHRUQXOO
8VHDFFBVHWBVFRSHWRVHWDORFDOVFRSHLQZKLFKDFFBKDQGOHBE\BQDPHVKDOOVHDUFK
8VHDFFBKDQGOHBREMHFWWRJHWDKDQGOHEDVHGRQWKHORFDOLQVWDQFHQDPHRIDQREMHFW
7KH$&&URXWLQHDFFBKDQGOHBE\BQDPHVKDOOUHWXUQWKHKDQGOHWRDQ\QDPHGREMHFWEDVHGRQLWVVSHFLÀHGQDPH
DQGVFRSH7KHURXWLQHFDQEHXVHGLQWZRZD\VDVVKRZQLQ7DEOH
7DEOH³+RZDFFBKDQGOHBE\BQDPHZRUNV
:KHQWKHVFRSHBKDQGOHLV
DFFBKDQGOHBE\BQDPHVKDOO
$YDOLGVFRSHKDQGOH
6HDUFKIRUWKHREMHFWBQDPHLQWKHVFRSHVSHFLÀHG
QXOO
7UHDWWKHREMHFWBQDPHDVDIXOOKLHUDUFKLFDOQDPH
7KH URXWLQH DFFBKDQGOHBE\BQDPH FRPELQHV WKH IXQFWLRQDOLW\ RI DFFBVHWBVFRSH DQG DFFBKDQGOHBREMHFW
PDNLQJLWSRVVLEOHWRREWDLQKDQGOHVIRUREMHFWVWKDWDUHQRWLQWKHORFDOVFRSHZLWKRXWKDYLQJWRÀUVWFKDQJHVFRSHV
7DEOHOLVWVWKHREMHFWVLQD9HULORJ+'/GHVFULSWLRQIRUZKLFKDFFBKDQGOHBE\BQDPHVKDOOUHWXUQDKDQGOH
7DEOH³1DPHGREMHFWVVXSSRUWHGE\DFFBKDQGOHBE\BQDPH
0RGXOHV
3DUDPHWHUV
3ULPLWLYHV
6SHFSDUDPV
1HWV
1DPHGEORFNV
5HJLVWHUV
9HULORJ+'/WDVNV
9DULDEOHV
9HULORJ+'/IXQFWLRQV
1DPHGHYHQWV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KH URXWLQH DFFBKDQGOHBE\BQDPH GRHV QRW UHWXUQ KDQGOHV IRU PRGXOH SDWKV LQWHUPRGXOH SDWKV GDWD SDWKV RU
SRUWV8VHDQDSSURSULDWHDFFBQH[WBRURWKHU$&&URXWLQHVIRUWKHVHREMHFWV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBE\BQDPHWRVHWWKHVFRSHDQGJHWWKHKDQGOHWRDQREMHFWLI
WKHREMHFWLVLQWKHPRGXOH
LQFOXGHDFFBXVHUK
LVBQHWBLQBPRGXOHPRGXOHBKDQGOHQHWBQDPH
KDQGOHPRGXOHBKDQGOH
FKDUQHWBQDPH
^
KDQGOHQHWBKDQGOH
KDQGOHORDGBKDQGOHORDGBQHWBKDQGOH
VHWVFRSHWRPRGXOHDQGJHWKDQGOHIRUQHW
QHWBKDQGOH DFFBKDQGOHBE\BQDPHQHWBQDPHPRGXOHBKDQGOH
`
LIQHWBKDQGOH
LRBSULQWI1HWVIRXQGLQPRGXOHV?Q
QHWBQDPH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
HOVH
LRBSULQWI1HWVQRWIRXQGLQPRGXOHV?Q
QHWBQDPH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
)LJXUH³8VLQJDFFBKDQGOHBE\BQDPH
1RWHWKDWLQWKLVH[DPSOH
QHWBKDQGOH DFFBKDQGOHBE\BQDPHQHWBQDPHPRGXOHBKDQGOH
FRXOGDOVRKDYHEHHQZULWWHQDVIROORZV
DFFBVHWBVFRSHPRGXOHBKDQGOH
QHWBKDQGOH DFFBKDQGOHBREMHFWQHWBQDPH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBFDOOLQJBPRGBP
DFFBKDQGOHBFDOOLQJBPRGBP
6\QRSVLV
*HWDKDQGOHWRWKHPRGXOHFRQWDLQLQJWKHLQVWDQFHRIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQWKDWFDOOHGWKH
3/,DSSOLFDWLRQ
6\QWD[
DFFBKDQGOHBFDOOLQJBPRGBP
7\SH
5HWXUQV
KDQGOH
7\SH
$UJXPHQWV
'HVFULSWLRQ
+DQGOHWRDPRGXOH
1DPH
'HVFULSWLRQ
1RQH
7KH$&&URXWLQHDFFBKDQGOHBFDOOLQJBPRGBPVKDOOUHWXUQDKDQGOHWRWKHPRGXOHWKDWFRQWDLQVWKHLQVWDQFHRIWKH
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQWKDWFDOOHGWKH3/,DSSOLFDWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBFRQGLWLRQ
DFFBKDQGOHBFRQGLWLRQ
6\QRSVLV
*HWDKDQGOHWRWKHFRQGLWLRQDOH[SUHVVLRQRIDPRGXOHSDWKGDWDSDWKRUWLPLQJFKHFNWHUPLQDO
6\QWD[
DFFBKDQGOHBFRQGLWLRQSDWKBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
KDQGOH
'HVFULSWLRQ
+DQGOHWRDFRQGLWLRQDOH[SUHVVLRQ
7\SH
1DPH
KDQGOH
SDWKBKDQGOH
'HVFULSWLRQ
+DQGOHWRDPRGXOHSDWKGDWDSDWKRUWLPLQJFKHFN
WHUPLQDO
7KH$&&URXWLQHDFFBKDQGOHBFRQGLWLRQVKDOOUHWXUQDKDQGOHWRDFRQGLWLRQDOH[SUHVVLRQIRUWKHVSHFLÀHGPRGXOH
SDWKGDWDSDWKRUWLPLQJFKHFNWHUPLQDO7KHURXWLQHVKDOOUHWXUQQXOOZKHQ
³ 7KHPRGXOHSDWKGDWDSDWKRUWLPLQJFKHFNWHUPLQDOKDVQRFRQGLWLRQVSHFLÀHG
³ 7KHPRGXOHSDWKKDVDQLIQRQHFRQGLWLRQVSHFLÀHG
7RGHWHUPLQHLIDPRGXOHSDWKKDVDQLIQRQHFRQGLWLRQVSHFLÀHGXVHWKH$&&URXWLQHDFFBREMHFWBRIBW\SHWRFKHFN
IRUWKHSURSHUW\W\SHRIDFF0RG3DWK+DV,IQRQH
7KHH[DPSOHVKRZQLQ)LJXUHSURYLGHVIXQFWLRQDOLW\WRVHHLIDSDWKLVFRQGLWLRQDODQGLILWLVZKHWKHULWLV
OHYHOVHQVLWLYHRUHGJHVHQVLWLYH7KHDSSOLFDWLRQDVVXPHVWKDWWKHLQSXWLVDYDOLGKDQGOHWRDPRGXOHSDWK
ERROLVBSDWKBFRQGLWLRQDOSDWK
^
LIDFFBKDQGOHBFRQGLWLRQSDWK
UHWXUQ758(
HOVH
UHWXUQ)$/6(
`
ERROLVBOHYHOBVHQVLWLYHSDWK
^
ERROIODJ
KDQGOHSDWKBLQ DFFBQH[WBLQSXWSDWKQXOO
LILVBSDWKBFRQGLWLRQDOSDWKDFFBIHWFKBHGJHSDWKBLQ
IODJ )$/6(SDWKLVHGJHVHQVLWLYH
HOVH
IODJ 758(SDWKLVOHYHOBVHQVLWLYH
DFFBUHOHDVHBREMHFWSDWKBLQ
`
UHWXUQIODJ
)LJXUH³8VLQJDFFBKDQGOHBFRQGLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBFRQQ
DFFBKDQGOHBFRQQ
6\QRSVLV
*HWWKHKDQGOHWRWKHQHWFRQQHFWHGWRDSULPLWLYHWHUPLQDOSDWKWHUPLQDORUWLPLQJFKHFNWHUPLQDO
6\QWD[
DFFBKDQGOHBFRQQWHUPLQDOBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
WHUPLQDOBKDQGOH
+DQGOHRIWKHSULPLWLYHWHUPLQDOSDWKWHUPLQDORUWLPLQJ
FKHFNWHUPLQDO
8VHDFFBKDQGOHBWHUPLQDORUDFFBQH[WBWHUPLQDOWRREWDLQDWHUPLQDOBKDQGOH
7KH$&&URXWLQHDFFBKDQGOHBFRQQVKDOOUHWXUQDKDQGOHWRWKHQHWFRQQHFWHGWRDSULPLWLYHWHUPLQDOSDWKWHUPLQDO
RUWLPLQJFKHFNWHUPLQDO7KLVKDQGOHFDQWKHQEHSDVVHGWRRWKHU$&&URXWLQHVWRWUDYHUVHDGHVLJQKLHUDUFK\RUWR
H[WUDFWLQIRUPDWLRQDERXWWKHGHVLJQ
7KHH[DPSOHVKRZQLQ)LJXUHGLVSOD\VWKHQHWFRQQHFWHGWRWKHRXWSXWWHUPLQDORIDJDWH
LQFOXGHDFFBXVHUK
GLVSOD\BGULYHQBQHW
^
KDQGOH JDWHBKDQGOHWHUPLQDOBKDQGOHQHWBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUWKHJDWH
JDWHBKDQGOH DFFBKDQGOHBWIDUJ
JHWKDQGOHIRUWKHJDWH·VRXWSXWWHUPLQDO
WHUPLQDOBKDQGOH DFFBKDQGOHBWHUPLQDOJDWHBKDQGOH
JHWKDQGOHIRUWKHQHWFRQQHFWHGWRWKHRXWSXWWHUPLQDO
QHWBKDQGOH DFFBKDQGOHBFRQQWHUPLQDOBKDQGOH
`
GLVSOD\QHWQDPH
LRBSULQWI*DWHVGULYHVQHWV?Q
DFFBIHWFKBIXOOQDPHJDWHBKDQGOH
DFFBIHWFKBQDPHQHWBKDQGOH
DFFBFORVH
)LJXUH³8VLQJDFFBKDQGOHBFRQQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBGDWDSDWK
DFFBKDQGOHBGDWDSDWK
6\QRSVLV
*HWDKDQGOHWRDGDWDSDWKIRUDQHGJHVHQVLWLYHPRGXOHSDWK
6\QWD[
DFFBKDQGOHBGDWDSDWKPRGSDWKBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDGDWDSDWK
7\SH
1DPH
KDQGOH
PRGSDWKBKDQGOH
'HVFULSWLRQ
+DQGOHWRDPRGXOHSDWK
7KH $&& URXWLQH DFFBQH[WBGDWDSDWK VKDOO UHWXUQ D KDQGOH WR WKH GDWD SDWK DVVRFLDWHG ZLWK DQ HGJHVHQVLWLYH
PRGXOHSDWK,IWKHUHLVQRGDWDSDWKQXOOVKDOOEHUHWXUQHG
$GDWDSDWKLVSDUWRIWKH9HULORJ+'/GHVFULSWLRQIRUHGJHVHQVLWLYHPRGXOHSDWKVDVLOOXVWUDWHGEHORZ
GDWDSDWK
SRVHGJHFON !TG PRGXOHSDWK
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBGDWDSDWKWRÀQGWKHGDWDSDWKFRUUHVSRQGLQJWRWKHVSHFLÀHG
PRGXOHSDWKDQGGLVSOD\VWKHVRXUFHDQGGHVWLQDWLRQSRUWQDPHVIRUWKHGDWDSDWK
GLVSOD\BGDWDSDWKBWHUPVPRGSDWK
KDQGOHPRGSDWK
^
KDQGOHGDWDSDWK DFFBKDQGOHBGDWDSDWKPRGSDWK
KDQGOHSDWKLQ DFFBQH[WBLQSXWGDWDSDWKQXOO
KDQGOHSDWKRXW DFFBQH[WBRXWSXWGDWDSDWKQXOO
`
WKHUHLVRQO\RQHLQSXWDQGRXWSXWWRDGDWDSDWK
LRBSULQWI'$7$3$7+,1387V?QDFFBIHWFKBIXOOQDPHSDWKLQ
LRBSULQWI'$7$3$7+287387V?QDFFBIHWFKBIXOOQDPHSDWKRXW
DFFBUHOHDVHBREMHFWSDWKLQ
DFFBUHOHDVHBREMHFWSDWKRXW
)LJXUH³8VLQJDFFBKDQGOHBGDWDSDWK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBKLFRQQ
DFFBKDQGOHBKLFRQQ
6\QRSVLV
*HWWKHKLHUDUFKLFDOO\KLJKHUQHWFRQQHFWLRQWRDVFDODUPRGXOHSRUWRUDELWVHOHFWRIDYHFWRUSRUW
6\QWD[
DFFBKDQGOHBKLFRQQSRUWBUHIBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
7\SH
1DPH
KDQGOH
SRUWBUHIBKDQGOH
'HVFULSWLRQ
+DQGOHWRDVFDODUSRUWRUDELWVHOHFWRIDYHFWRUSRUW
8VHDFFBQH[WBKLFRQQWRÀQGDOOQHWVFRQQHFWHGWRDVFDODUSRUWRUELWVHOHFWRIDSRUW
8VHDFFBKDQGOHBORFRQQWRJHWWKHKLHUDUFKLFDOO\ORZHUQHWFRQQHFWLRQRIDSRUW
7KH$&&URXWLQHDFFBKDQGOHBKLFRQQVKDOOUHWXUQWKHKLHUDUFKLFDOO\KLJKHUQHWFRQQHFWLRQIRUDVFDODUSRUWRUDELW
VHOHFWRIRQHRIWKHIROORZLQJ
³ 9HFWRUSRUW
³ 3DUWVHOHFWRIDSRUW
³ &RQFDWHQDWLRQRIVFDODUSRUWVYHFWRUSRUWVSDUWVHOHFWVRISRUWVRURWKHUFRQFDWHQDWLRQV
7KHKLFRQQLVWKHQHWFRQQHFWHGRQHOHYHODERYHWKHKLHUDUFKLFDOVFRSHRIDPRGXOHSRUWDVLOOXVWUDWHGEHORZ
PRGXOH
ORFRQQ
ORZHUQHWFRQQHFWLRQ
PRGXOHSRUWELW
KLFRQQ
KLJKHUQHWFRQQHFWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBKLFRQQDQGDFFBKDQGOHBORFRQQWRGLVSOD\WKHKLJKHUDQG
ORZHUFRQQHFWLRQVRIDPRGXOHSRUW
GLVSOD\BSRUWBLQIRPRGLQGH[
KDQGOHPRG
LQWLQGH[
^
KDQGOHSRUW DFFBKDQGOHBSRUWPRGLQGH[
KDQGOHKLFRQQORFRQQSRUWBELW
`
LIDFFBIHWFKBVL]HSRUW ^
KLFRQQ DFFBKDQGOHBKLFRQQSRUW
ORFRQQ DFFBKDQGOHBORFRQQSRUW
LRBSULQWIKLVORV?Q
DFFBIHWFKBIXOOQDPHKLFRQQDFFBIHWFKBIXOOQDPHORFRQQ
`
HOVH^
SRUWBELW QXOO
ZKLOHSRUWBELW DFFBQH[WBELWSRUWSRUWBELW
^
KLFRQQ DFFBKDQGOHBKLFRQQSRUWBELW
ORFRQQ DFFBKDQGOHBORFRQQSRUWBELW
LRBSULQWIKLVORV?Q
DFFBIHWFKBIXOOQDPHKLFRQQDFFBIHWFKBIXOOQDPHORFRQQ
`
`
)LJXUH³8VLQJDFFBKDQGOHBKLFRQQDQGDFFBKDQGOHBORFRQQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBLQWHUDFWLYHBVFRSH
DFFBKDQGOHBLQWHUDFWLYHBVFRSH
6\QRSVLV
*HWDKDQGOHWRWKHFXUUHQWLQWHUDFWLYHVFRSHRIWKHVRIWZDUHWRRO
6\QWD[
DFFBKDQGOHBLQWHUDFWLYHBVFRSH
7\SH
5HWXUQV
KDQGOH
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRID9HULORJKLHUDUFK\VFRSH
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBIHWFKBW\SHRUDFFBIHWFKBIXOOW\SHWRGHWHUPLQHWKHVFRSHW\SHUHWXUQHG
8VHDFFBVHWBLQWHUDFWLYHBVFRSHWRFKDQJHWKHLQWHUDFWLYHVFRSH
7KH$&&URXWLQHDFFBKDQGOHBLQWHUDFWLYHBVFRSHVKDOOUHWXUQDKDQGOHWRWKH9HULORJ+'/GHVLJQVFRSHZKHUHWKH
LQWHUDFWLYHPRGHRIDVRIWZDUHSURGXFWLVFXUUHQWO\SRLQWLQJ
$VFRSHVKDOOEH
³
³
³
³
³
³
$WRSOHYHOPRGXOH
$PRGXOHLQVWDQFH
$QDPHGEHJLQHQGEORFN
$QDPHGIRUNMRLQEORFN
$9HULORJ+'/WDVN
$9HULORJ+'/IXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBORFRQQ
DFFBKDQGOHBORFRQQ
6\QRSVLV
*HWVWKHKLHUDUFKLFDOO\ORZHUQHWFRQQHFWLRQWRDVFDODUPRGXOHSRUWRUDELWVHOHFWRIDYHFWRUSRUW
6\QWD[
DFFBKDQGOHBORFRQQSRUWBUHIBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
7\SH
1DPH
KDQGOH
SRUWBUHIBKDQGOH
'HVFULSWLRQ
+DQGOHWRDVFDODUSRUWRUDELWVHOHFWRIDYHFWRUSRUW
8VHDFFBQH[WBORFRQQWRÀQGDOOQHWVFRQQHFWHGWRDVFDODUSRUWRUELWVHOHFWRIDSRUW
8VHDFFBKDQGOHBKLFRQQWRJHWWKHKLHUDUFKLFDOO\KLJKHUQHWFRQQHFWLRQRIDSRUW
7KH$&&URXWLQHDFFBKDQGOHBORFRQQVKDOOUHWXUQWKHKLHUDUFKLFDOO\ORZHUQHWFRQQHFWLRQIRUDVFDODUSRUWRUDELW
VHOHFWRIRQHRIWKHIROORZLQJ
³ 9HFWRUSRUW
³ 3DUWVHOHFWRIDSRUW
³ &RQFDWHQDWLRQRIVFDODUSRUWVYHFWRUSRUWVSDUWVHOHFWVRISRUWVRURWKHUFRQFDWHQDWLRQV
7KHORFRQQLVWKHQHWFRQQHFWHGZLWKLQWKHKLHUDUFKLFDOVFRSHRIDPRGXOHSRUWDVLOOXVWUDWHGEHORZ
PRGXOH
ORFRQQ
ORZHUQHWFRQQHFWLRQ
PRGXOHSRUWELW
KLFRQQ
KLJKHUQHWFRQQHFWLRQ
5HIHUWRWKHXVDJHH[DPSOHLQIRUDQH[DPSOHRIXVLQJDFFBKDQGOHBORFRQQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBPRGSDWK
DFFBKDQGOHBPRGSDWK
6\QRSVLV
*HWVDKDQGOHWRDPRGXOHSDWK
6\QWD[
DFFBKDQGOHBPRGSDWKPRGXOHBKDQGOHVRXUFHBQDPHGHVWLQDWLRQBQDPH
VRXUFHBKDQGOHGHVWLQDWLRQBKDQGOH
7\SH
5HWXUQV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDPRGXOHSDWK
7\SH
1DPH
KDQGOH
PRGXOHBKDQGOH
TXRWHGVWULQJRU
FKDU
VRXUFHBQDPH
/LWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKWKHQDPHRID
QHWFRQQHFWHGWRDPRGXOHSDWKVRXUFH
TXRWHGVWULQJRU
FKDU
GHVWLQDWLRQBQDPH
/LWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKWKHQDPHRID
QHWFRQQHFWHGWRDPRGXOHSDWKGHVWLQDWLRQ
2SWLRQDO
KDQGOH
VRXUFHBKDQGOH
+DQGOHRIDQHWFRQQHFWHGWRDPRGXOHSDWKVRXUFHXVHG
ZKHQDFF(QDEOH$UJVLVVHWDQGVRXUFHBQDPHLVQXOO
2SWLRQDO
KDQGOH
GHVWLQDWLRQBKDQGOH
+DQGOHRIDQHWFRQQHFWHGWRDPRGXOHSDWKGHVWLQDWLRQ
XVHGZKHQDFF(QDEOH$UJVLVVHWDQGGHVWLQDWLRQBQDPH
LVQXOO
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRIWKHPRGXOH
8VHDFFBFRQÀJXUHDFF(QDEOH$UJV´DFFBKDQGOHBPRGSDWKµWRXVHWKHVRXUFHBKDQGOHDQGGHVWLQDWLRQBKDQGOH
7KH$&&URXWLQHDFFBKDQGOHBPRGSDWKVKDOOUHWXUQDKDQGOHWRDPRGXOHSDWK7KHURXWLQHVKDOOEHXVHGLQRQHRI
WZRZD\VFRQWUROOHGE\WKHFRQÀJXUDWLRQRIWKHSDUDPHWHUDFF(QDEOH$UJVDVVKRZQLQ7DEOH
7DEOH³+RZDFFBKDQGOHBPRGSDWKZRUNV
6HWWLQJRIDFF(QDEOH$UJV
DFFBKDQGOHBPRGSDWKVKDOO
´QRBDFFBKDQGOHBPRGSDWKµWKHGHIDXOWVHWWLQJ
8VHWKHQDPHDUJXPHQWVDQGLJQRUHERWKKDQGOHDUJX
PHQWVWKHKDQGOHDUJXPHQWVFDQEHGURSSHG
DFFBKDQGOHBPRGSDWKDQGHLWKHUVRXUFHBQDPHRU
GHVWLQDWLRQBQDPHLVQXOO
8VHWKHKDQGOHDUJXPHQWRIWKHQXOOQDPHDUJXPHQWLI
WKHQDPHDUJXPHQWLVQRWQXOOWKHQDPHVKDOOEHXVHG
DQGWKHDVVRFLDWHGKDQGOHDUJXPHQWLJQRUHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
$PRGXOHSDWKLVWKHVSHFLI\EORFNSDWKIRUGHOD\VLQWKH9HULORJ+'/GHVFULSWLRQ)RUH[DPSOH
PRGXOHSDWK
LQ!RXW SRVHGJHFON !TG PRGXOHSDWK
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBKDQGOHBPRGSDWK WR REWDLQ KDQGOHV IRU SDWKV WKDW FRQQHFW WKH
VRXUFHVDQGGHVWLQDWLRQVOLVWHGLQWKHÀOHSDWKFRQQGDW7KHIRUPDWRISDWKFRQQGDWLVVKRZQEHORZ
PRGXOHQDPH
‡
‡
SDWKVRXUFH
WRSPRGLQRXW
‡
‡
SDWKGHVWLQDWLRQ
LQFOXGHVWGLRK!
LQFOXGHDFFBXVHUK
GHILQH1$0(B6,=(
JHWBSDWKV
^
),/(
LQILOH
FKDU
PRGBQDPH>1$0(B6,=(@VUFBQDPH>1$0(B6,=(@GHVWBQDPH>1$0(B6,=(@
KDQGOH
SDWKBKDQGOHPRGBKDQGOH
LQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VHWDFF3DWK'HOLP6WUWRB
DFFBFRQILJXUHDFF3DWK'HOLP6WUB
`
UHDGGHOD\VIURPILOHUPHDQVUHDGRQO\
LQILOH IRSHQSDWKFRQQGDWU
ZKLOHIVFDQILQILOHVVVPRGBQDPHVUFBQDPHGHVWBQDPH (2)
^
JHWKDQGOHIRUPRGXOHPRGBQDPH
PRGBKDQGOH DFFBKDQGOHBREMHFWPRGBQDPH
SDWKBKDQGOH DFFBKDQGOHBPRGSDWKPRGBKDQGOHVUFBQDPHGHVWBQDPH
LIDFFBHUURUBIODJ
LRBSULQWI3DWKVZDVIRXQG?Q
DFFBIHWFKBIXOOQDPHSDWKBKDQGOH
HOVH
LRBSULQWI3DWKVBVZDVQRWIRXQG?QVUFBQDPHGHVWBQDPH
`
DFFBFORVH
)LJXUH³8VLQJDFFBKDQGOHBPRGSDWK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBQRWLÀHU
DFFBKDQGOHBQRWLÀHU
6\QRSVLV
*HWWKHQRWLÀHUUHJLVWHUDVVRFLDWHGZLWKDSDUWLFXODUWLPLQJFKHFN
6\QWD[
DFFBKDQGOHBQRWLILHUWFKN
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHWRDWLPLQJFKHFNQRWLÀHU
7\SH
1DPH
KDQGOH
WFKN
'HVFULSWLRQ
+DQGOHRIDWLPLQJFKHFN
8VHDFFBKDQGOHBWFKNWRJHWDKDQGOHWRDVSHFLÀFWLPLQJFKHFN
8VHDFFBQH[WBWFKNWRJHWKDQGOHVWRDOOWLPLQJFKHFNVLQDPRGXOH
7KH$&&URXWLQHDFFBKDQGOHBQRWLÀHUVKDOOUHWXUQDKDQGOHWRWKHQRWLÀHUUHJLVWHUDVVRFLDWHGZLWKDWLPLQJFKHFN
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBQRWLÀHUWRGLVSOD\WKHQDPHRIDQRWLÀHUDVVRFLDWHGZLWKD
WLPLQJFKHFN
GLVSOD\BQRWLILHUWFKN
KDQGOHWFKN
^
KDQGOHQWI\
`
QWI\ DFFBKDQGOHBQRWLILHUWFKN
LIQWI\
LRBSULQWI7FKNQRWLILHUV?QDFFBIHWFKBIXOOQDPHQWI\
HOVH
LRBSULQWI7FKNKDVQRQRWLILHU?Q
)LJXUH³8VLQJDFFBKDQGOHBQRWLÀHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBREMHFW
DFFBKDQGOHBREMHFW
6\QRSVLV
*HWDKDQGOHIRUDQ\QDPHGREMHFW
6\QWD[
DFFBKDQGOHBREMHFWREMHFWBQDPH
7\SH
5HWXUQV
'HVFULSWLRQ
KDQGOH
+DQGOHWRDQREMHFW
7\SH
1DPH
'HVFULSWLRQ
$UJXPHQWV
TXRWHGVWULQJRU
FKDU
REMHFWBQDPH
/LWHUDOVWULQJRUFKDUDFWHUVWULQJSRLQWHUZLWKWKHIXOORUUHO
DWLYHKLHUDUFKLFDOSDWKQDPHRIDQREMHFW
5HODWHG
URXWLQHV
8VHDFFBVHWBVFRSHWRVHWWKHVFRSHZKHQXVLQJUHODWLYHSDWKQDPHVIRUDQREMHFW
7KH$&&URXWLQHDFFBKDQGOHBREMHFWVKDOOUHWXUQDKDQGOHWRDQDPHGREMHFW7KHREMHFWBQDPHDUJXPHQWVKDOOEHD
TXRWHGVWULQJRUSRLQWHUWRDVWULQJ7KHREMHFWBQDPHFDQLQFOXGHD9HULORJKLHUDUFK\SDWK7KHURXWLQHVKDOOVHDUFKIRU
WKHREMHFWXVLQJWKHUXOHVJLYHQLQ7DEOH
7DEOH³+RZDFFBKDQGOHBREMHFWZRUNV
,IREMHFWBQDPHFRQWDLQV
$IXOOKLHUDUFKLFDOSDWKQDPH
DIXOOKLHUDUFKLFDOSDWKEHJLQVZLWKDWRSOHYHOPRGXOH
1RSDWKQDPH
RU
DUHODWLYHSDWKQDPH
DFFBKDQGOHBREMHFWVKDOO
5HWXUQDKDQGOHWRWKHREMHFWQRVHDUFKLVSHUIRUPHG
6HDUFKIRUREMHFWVWDUWLQJLQWKHFXUUHQW3/,VFRSHIRO
ORZLQJVHDUFKUXOHVGHÀQHGLQ
7KH$&&URXWLQHDFFBKDQGOHBREMHFWVKDOOXVHWKHFXUUHQW3/,VFRSHDVDEDVLVIRUVHDUFKLQJIRUREMHFWV7KH3/,
VFRSHVKDOOGHIDXOWWRWKH9HULORJVFRSHRIWKHV\VWHPWDVNIXQFWLRQWKDWFDOOHGWKH&DSSOLFDWLRQRIWKHXVHUDQGLWFDQ
EHFKDQJHGIURPZLWKLQWKHDSSOLFDWLRQXVLQJDFFBVHWBVFRSH
7DEOHOLVWVWKHREMHFWVLQD9HULORJ+'/GHVFULSWLRQIRUZKLFKDFFBKDQGOHBREMHFWVKDOOUHWXUQDKDQGOH
7DEOH³1DPHGREMHFWV
6HFWLRQ
0RGXOHV
9DULDEOHV
0RGXOHSRUWV
1DPHGHYHQWV
0RGXOHSDWKV
3DUDPHWHUV
'DWDSDWKV
6SHFSDUDPV
3ULPLWLYHV
1DPHGEORFNV
1HWV
9HULORJ+'/WDVNV
5HJLVWHUV
9HULORJ+'/IXQFWLRQV
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBKDQGOHBREMHFW WR UHWULHYH KDQGOHV IRU QHW QDPHV UHDG IURP D ÀOH
FDOOHGSULPGHOD\GDW7KHIRUPDWRIWKHÀOHLVVKRZQEHORZ1RWHWKDWWKLVH[DPSOHDVVXPHVWKDWHDFKQHWLV
GULYHQE\RQO\RQHSULPLWLYH
‡
‡
ULVHGHOD\
WRSPQHW
QDPHRIQHW
‡
‡
IDOOGHOD\
LQFOXGHVWGLRK!
LQFOXGHDFFBXVHUK
GHILQH1$0(B6,=(
ZULWHBSULPBGHOD\V
^
),/(
LQILOH
FKDU
IXOOBQHWBQDPH>1$0(B6,=(@
GRXEOH
ULVHIDOO
KDQGOH
QHWBKDQGOHGULYHUBKDQGOHSULPBKDQGOH
LQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VHWDFF3DWK'HOD\&RXQWSDUDPHWHUIRUULVHDQGIDOOGHOD\VRQO\
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
UHDGGHOD\VIURPILOHUPHDQVUHDGRQO\
LQILOH IRSHQSULPGHOD\GDWU
ZKLOHIVFDQILQILOHVOIOIIXOOBQHWBQDPHULVHIDOO (2)
^
JHWKDQGOHIRUWKHQHW
QHWBKDQGOH DFFBKDQGOHBREMHFWIXOOBQHWBQDPH
JHWSULPLWLYHFRQQHFWHGWRILUVWQHWGULYHU
GULYHUBKDQGOH DFFBQH[WBGULYHUQHWBKDQGOHQXOO
SULPBKDQGOH DFFBKDQGOHBSDUHQWGULYHUBKDQGOH
UHSODFHGHOD\VZLWKQHZYDOXHV
DFFBUHSODFHBGHOD\VSULPBKDQGOHULVHIDOO
`
`
DFFBFORVH
)LJXUH³8VLQJDFFBKDQGOHBREMHFW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBSDUHQW
DFFBKDQGOHBSDUHQW
6\QRSVLV
*HWDKDQGOHIRUWKHSDUHQWSULPLWLYHLQVWDQFHRUPRGXOHLQVWDQFHRIDQREMHFW
6\QWD[
DFFBKDQGOHBSDUHQWREMHFWBKDQGOH
7\SH
5HWXUQV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDSULPLWLYHRUPRGXOH
7\SH
$UJXPHQWV
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDQREMHFW
7KH$&&URXWLQHDFFBKDQGOHBSDUHQWVKDOOUHWXUQDKDQGOHWRWKHSDUHQWRIDQ\REMHFW$SDUHQWLVDQREMHFWWKDW
FRQWDLQVDQRWKHUREMHFW
³ 7KHSDUHQWRIDWHUPLQDOVKDOOEHWKHSULPLWLYHWKDWFRQWDLQVWKHWHUPLQDO
³ 7KH SDUHQW RI DQ\ RWKHU REMHFW H[FHSW D WRSOHYHO PRGXOH VKDOO EH WKH PRGXOH LQVWDQFH WKDW FRQWDLQV WKH
REMHFW
³ 7RSOHYHOPRGXOHVGRQRWKDYHSDUHQWV:KHQDWRSOHYHOPRGXOHKDQGOHLVSDVVHGWRDFFBKDQGOHBSDUHQWLW
VKDOOUHWXUQQXOO
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBSDUHQWWRGHWHUPLQHZKLFKWHUPLQDOVRIDSULPLWLYHGULYHD
QHW
LQFOXGHDFFBXVHUK
JHWBSULPLWLYHVQHWBKDQGOH
KDQGOH
QHWBKDQGOH
^
KDQGOH
SULPLWLYHBKDQGOH
KDQGOH
GULYHUBKDQGOH
`
JHWSULPLWLYHWKDWRZQVHDFKWHUPLQDOWKDWGULYHVWKHQHW
GULYHUBKDQGOH QXOO
ZKLOHGULYHUBKDQGOH DFFBQH[WBGULYHUQHWBKDQGOHGULYHUBKDQGOH
^
SULPLWLYHBKDQGOH DFFBKDQGOHBSDUHQWGULYHUBKDQGOH
LRBSULQWI3ULPLWLYHVGULYHVQHWV?Q
DFFBIHWFKBIXOOQDPHSULPLWLYHBKDQGOH
DFFBIHWFKBIXOOQDPHQHWBKDQGOH
`
)LJXUH³8VLQJDFFBKDQGOHBSDUHQW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBSDWK
DFFBKDQGOHBSDWK
6\QRSVLV
*HWDKDQGOHWRDQLQWHUPRGXOHSDWKWKDWUHSUHVHQWVWKHFRQQHFWLRQIURPDQRXWSXWRULQRXWSRUWWRDQLQSXWRU
LQRXWSRUW
6\QWD[
DFFBKDQGOHBSDWKSRUWBRXWSXWBKDQGOHSRUWBLQSXWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIWKHLQWHUPRGXOHSDWK
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SRUWBRXWSXWBKDQGOH
+DQGOHWRRQHRIWKHIROORZLQJ
‡$VFDODURXWSXWSRUW
‡$VFDODUELGLUHFWLRQDOSRUW
‡ELWRIDYHFWRURXWSXWSRUW
‡ELWRIDYHFWRUELGLUHFWLRQDOSRUW
KDQGOH
SRUWBLQSXWBKDQGOH
+DQGOHWRRQHRIWKHIROORZLQJ
‡$VFDODULQSXWSRUW
‡$VFDODUELGLUHFWLRQDOSRUW
‡ELWRIDYHFWRULQSXWSRUW
‡ELWRIDYHFWRUELGLUHFWLRQDOSRUW
8VHDFFBQH[WBSRUWRUDFFBKDQGOHBSRUWWRUHWULHYHDKDQGOHWRDVFDODUSRUW
8VHDFFBQH[WBELWWRUHWULHYHDKDQGOHWRDELWRIDYHFWRUSRUWRUDELWRIDFRQFDWHQDWHGSRUW
8VHDFFBIHWFKBGLUHFWLRQWRGHWHUPLQHZKHWKHUDSRUWLVDQLQSXWDQRXWSXWRUELGLUHFWLRQDO
7KH$&&URXWLQHDFFBKDQGOHBSDWKVKDOOUHWXUQDKDQGOHVWRDQLQWHUPRGXOHSDWK$QLQWHUPRGXOHSDWKVKDOOEHD
QHWSDWKWKDWFRQQHFWVDQRXWSXWRULQRXWSRUWRIRQHPRGXOHWRDQLQSXWRULQRXWSRUWRIDQRWKHUPRGXOH
7KHH[DPSOHVKRZQLQ)LJXUHLVD&FRGHIUDJPHQWWKDWXVHVDFFBKDQGOHBSDWKWRIHWFKPLQW\SPD[GHOD\V
IRUWKHLQWHUPRGXOHSDWKUHIHUHQFHGE\LQWHUPRGBSDWK
LQFOXGHDFFBXVHUK
IHWFKBPLQW\SPD[BGHOD\VSRUWBRXWSXWSRUWBLQSXW
KDQGOH
SRUWBRXWSXWSRUWBLQSXW
^
KDQGOH
LQWHUPRGBSDWK
GRXEOH
GHOD\BDUUD\>@
DFFBKDQGOHBSDWKUHWXUQVDKDQGOH
WRDQHWSDWKWKDWUHSUHVHQWVWKH
FRQQHFWLRQIURPDQRXWSXWRULQRXW
DFFBFRQILJXUHDFF0LQ7\S0D['HOD\VWUXH
SRUWWRDQLQSXWRULQRXWSRUW
LQWHUPRGBSDWK DFFBKDQGOHBSDWKSRUWBRXWSXWSRUWBLQSXW
DFFBIHWFKBGHOD\VLQWHUPRGBSDWKGHOD\BDUUD\
`
)LJXUH³8VLQJDFFBKDQGOHBSDWK
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBSDWKLQ
DFFBKDQGOHBSDWKLQ
6\QRSVLV
*HWDKDQGOHIRUWKHÀUVWQHWFRQQHFWHGWRDPRGXOHSDWKVRXUFH
6\QWD[
DFFBKDQGOHBSDWKLQSDWKBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHWRDQHW
7\SH
1DPH
KDQGOH
SDWKBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHPRGXOHSDWK
8VHDFFBQH[WBPRGSDWKRUDFFBKDQGOHBPRGSDWKWRJHWSDWKBKDQGOH
7KH$&&URXWLQHDFFBKDQGOHBSDWKLQVKDOOUHWXUQDKDQGOHWRWKHQHWFRQQHFWHGWRWKHÀUVWVRXUFHLQDPRGXOHSDWK
,IDPRGXOHSDWKKDVPRUHWKDQRQHLQSXWVRXUFHRQO\WKHKDQGOHWRWKHQHWFRQQHFWHGWRWKHÀUVWVRXUFHVKDOOEH
UHWXUQHG)RUH[DPSOH
SDWKLQ
SRVHGJHFON !TG DEF!GHI SDWKLQLVILUVWWHUPLQDO
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBSDWKLQWRÀQGWKHQHWFRQQHFWHGWRWKHLQSXWRIDSDWK
LQFOXGHDFFBXVHUK
JHWBSDWKBQHWVSDWKBKDQGOH
KDQGOH
SDWKBKDQGOH
^
KDQGOH
SDWKLQBKDQGOHSDWKRXWBKDQGOH
`
SDWKLQBKDQGOH DFFBKDQGOHBSDWKLQSDWKBKDQGOH
SDWKRXWBKDQGOH DFFBKDQGOHBSDWKRXWSDWKBKDQGOH
LRBSULQWI1HWFRQQHFWHGWRLQSXWLVV?Q
DFFBIHWFKBQDPHSDWKLQBKDQGOH
LRBSULQWI1HWFRQQHFWHGWRRXWSXWLVV?Q
DFFBIHWFKBQDPHSDWKRXWBKDQGOH
)LJXUH³8VLQJDFFBKDQGOHBSDWKLQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBSDWKRXW
DFFBKDQGOHBSDWKRXW
6\QRSVLV
*HWDKDQGOHIRUWKHÀUVWQHWFRQQHFWHGWRDPRGXOHSDWKGHVWLQDWLRQ
6\QWD[
DFFBKDQGOHBSDWKRXWSDWKBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHWRDQHW
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SDWKBKDQGOH
+DQGOHRIWKHPRGXOHSDWK
8VHDFFBQH[WBPRGSDWKRUDFFBKDQGOHBPRGSDWKWRJHWSDWKBKDQGOH
7KH$&&URXWLQHDFFBKDQGOHBSDWKRXWVKDOOUHWXUQDKDQGOHWRWKHQHWFRQQHFWHGWRWKHÀUVWGHVWLQDWLRQLQDPRGXOH
SDWK ,I D PRGXOH SDWK KDV PRUH WKDQ RQH RXWSXW GHVWLQDWLRQ RQO\ WKH KDQGOH WR WKH QHW FRQQHFWHG WR WKH ÀUVW
GHVWLQDWLRQVKDOOEHUHWXUQHG)RUH[DPSOH
SDWKRXW
SRVHGJHFON !TG DEF!GHI SDWKRXWLVILUVWWHUPLQDO
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBSDWKRXWWRÀQGWKHQHWFRQQHFWHGWRWKHRXWSXWRIDSDWK
LQFOXGHDFFBXVHUK
JHWBSDWKBQHWVSDWKBKDQGOH
KDQGOH
SDWKBKDQGOH
^
KDQGOH
SDWKLQBKDQGOHSDWKRXWBKDQGOH
`
SDWKLQBKDQGOH DFFBKDQGOHBSDWKLQSDWKBKDQGOH
SDWKRXWBKDQGOH DFFBKDQGOHBSDWKRXWSDWKBKDQGOH
LRBSULQWI1HWFRQQHFWHGWRLQSXWLVV?Q
DFFBIHWFKBQDPHSDWKLQBKDQGOH
LRBSULQWI1HWFRQQHFWHGWRRXWSXWLVV?Q
DFFBIHWFKBQDPHSDWKRXWBKDQGOH
)LJXUH³8VLQJDFFBKDQGOHBSDWKRXW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBSRUW
DFFBKDQGOHBSRUW
6\QRSVLV
*HWDKDQGOHIRUDPRGXOHSRUWEDVHGRQWKHSRVLWLRQRIWKHSRUW
6\QWD[
DFFBKDQGOHBSRUWPRGXOHBKDQGOHSRUWBLQGH[
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHWRDPRGXOHSRUW
7\SH
1DPH
KDQGOH
PRGXOHBKDQGOH
LQW
SRUWBLQGH[
'HVFULSWLRQ
+DQGOHRIDPRGXOH
$QLQWHJHULQGH[RIWKHGHVLUHGSRUW
8VHDFFBQH[WBSRUWWRJHWKDQGOHVWRDOOSRUWVRIDPRGXOH
7KH$&&URXWLQHDFFBKDQGOHBSRUWVKDOOUHWXUQDKDQGOHWRDVSHFLÀFSRUWRIDPRGXOHEDVHGRQWKHSRVLWLRQRIWKH
SRUWLQWKHPRGXOHGHFODUDWLRQ
7KHLQGH[RIDSRUWVKDOOEHLWVSRVLWLRQLQDPRGXOHGHÀQLWLRQLQWKHVRXUFHGHVFULSWLRQ7KHLQGLFHVVKDOOEHLQWHJHUV
WKDWVWDUWDWDQGLQFUHDVHIURPOHIWWRULJKW7DEOHVKRZVKRZSRUWLQGLFHVDUHGHULYHG
7DEOH³'HULYLQJSRUWLQGLFHV
)RU
,QGLFHVVKDOOEH
,PSOLFLWSRUWV
PRGXOH$TDE
IRUSRUWT
IRUSRUWD
IRUSRUWE
([SOLFLWSRUWV
PRGXOHWRS
UHJUDUE
ZLUHZT
H[SOLFLWBSRUWBPRGHSPEUEDUDTZT
HQGPRGXOH
IRUH[SOLFLWSRUWHSPT
IRUH[SOLFLWSRUWHSPD
IRUH[SOLFLWSRUWHSPE
PRGXOHH[SOLFLWBSRUWBPRGTDE
LQSXWDE
RXWSXWT
QDQGTDE
HQGPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBKDQGOHBSRUW WR LGHQWLI\ ZKHWKHU D SDUWLFXODU PRGXOH SRUW LV DQ
RXWSXW
LQFOXGHDFFBXVHUK
ERROLVBSRUWBRXWSXWPRGXOHBKDQGOHSRUWBLQGH[
KDQGOH
PRGXOHBKDQGOH
LQW
SRUWBLQGH[
^
KDQGOH
SRUWBKDQGOH
LQW
GLUHFWLRQ
`
FKHFNSRUWGLUHFWLRQ
SRUWBKDQGOH DFFBKDQGOHBSRUWPRGXOHBKDQGOHSRUWBLQGH[
GLUHFWLRQ DFFBIHWFKBGLUHFWLRQSRUWBKDQGOH
LIGLUHFWLRQ DFF2XWSXW__GLUHFWLRQ DFF,QRXW
UHWXUQWUXH
HOVH
UHWXUQIDOVH
)LJXUH³8VLQJDFFBKDQGOHBSRUW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBVFRSH
DFFBKDQGOHBVFRSH
6\QRSVLV
*HWDKDQGOHWRWKHVFRSHWKDWFRQWDLQVDQREMHFW
6\QWD[
DFFBKDQGOHBVFRSHREMHFWBKDQGOH
7\SH
5HWXUQV
KDQGOH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRIDVFRSH
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHWRDQREMHFW
8VHDFFBIHWFKBW\SHRUDFFBIHWFKBIXOOW\SHWRGHWHUPLQHWKHVFRSHW\SHUHWXUQHG
7KH$&&URXWLQHDFFBKDQGOHBVFRSHVKDOOUHWXUQWKHKDQGOHWRWKHVFRSHRIDQREMHFW$VFRSHVKDOOEH
³
³
³
³
³
³
$WRSOHYHOPRGXOH
$PRGXOHLQVWDQFH
$QDPHGEHJLQHQGEORFN
$QDPHGIRUNMRLQEORFN
$9HULORJ+'/WDVN
$9HULORJ+'/IXQFWLRQ
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBVFRSHWRGLVSOD\WKHVFRSHWKDWFRQWDLQVDQREMHFW
JHWBVFRSHREM
KDQGOHREM
^
KDQGOHVFRSH DFFBKDQGOHBVFRSHREM
`
LRBSULQWI6FRSHVFRQWDLQVREMHFWV?Q
DFFBIHWFKBIXOOQDPHVFRSHDFFBIHWFKBQDPHREM
)LJXUH³8VLQJDFFBKDQGOHBVFRSH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBVLPXODWHGBQHW
DFFBKDQGOHBVLPXODWHGBQHW
6\QRSVLV
*HWWKHVLPXODWHGQHWDVVRFLDWHGZLWKWKHFROODSVHGQHWSDVVHGDVDQDUJXPHQW
6\QWD[
DFFBKDQGOHBVLPXODWHGBQHWFROODSVHGBQHWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHRIWKHVLPXODWHGQHW
7\SH
1DPH
KDQGOH
FROODSVHGBQHWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDFROODSVHGQHW
8VHDFFBREMHFWBRIBW\SHWRGHWHUPLQHLIDQHWKDVEHHQFROODSVHG
7KH$&&URXWLQHDFFBKDQGOHBVLPXODWHGBQHWVKDOOUHWXUQDKDQGOHWRWKHVLPXODWHGQHWWKDWLVDVVRFLDWHGZLWKD
VSHFLÀHGFROODSVHGQHW ,IDKDQGOHWRDQHWWKDWLVQRWFROODSVHGLVSDVVHGLQWRWKHURXWLQHDKDQGOHWRWKDWVDPHQHW
VKDOOEHUHWXUQHG
:KHQD9HULORJ+'/VRXUFHGHVFULSWLRQFRQQHFWVPRGXOHVWRJHWKHUDFKDLQRIQHWVZLWKGLIIHUHQWVFRSHVDQGQDPHV
DUHFRQQHFWHGDVLVLOOXVWUDWHGLQWKHIROORZLQJVLPSOHGLDJUDP
PRGXOHLQVWDQFHL
RXW
PRGXOHLQVWDQFHL
Z
LQ
,Q WKLV VPDOO FLUFXLW QHWV RXW Z DQG LQ DUH DOO WLHG WRJHWKHU HIIHFWLYHO\ EHFRPLQJ WKH VDPH QHW 6RIWZDUH
SURGXFWVFDQFROODSVHQHWVWKDWDUHFRQQHFWHGWRJHWKHUZLWKLQWKHGDWDVWUXFWXUHRIWKHSURGXFW7KHUHVXOWDQWQHWDIWHU
FROODSVLQJLVUHIHUUHGWRDVWKHVLPXODWHGQHWWKHRWKHUQHWVDUHUHIHUUHGWRDVFROODSVHGQHWV7KH$&&URXWLQHVFDQ
REWDLQDKDQGOHWRDQ\QHWZKHWKHULWLVFROODSVHGRUQRW7KHURXWLQHDFFBREMHFWBRIBW\SHFDQEHXVHGWRGHWHUPLQH
LIDQHWKDVEHHQFROODSVHGDQGWKHURXWLQHDFFBKDQGOHBVLPXODWHGBQHWFDQEHXVHGWRÀQGWKHUHVXOWDQWQHWIURPWKH
QHWFROODSVLQJSURFHVV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBKDQGOHBVLPXODWHGBQHWWRÀQGDOOVLPXODWHGQHWVZLWKLQDSDUWLFXODU
VFRSH 7KH DSSOLFDWLRQ WKHQ GLVSOD\V HDFK FROODSVHG QHW DORQJ ZLWK WKH VLPXODWHG QHW 7KH $&& URXWLQH
DFFBREMHFWBRIBW\SHLVXVHGZLWKWKHSURSHUW\DFF&ROODSVHG1HWWRGHWHUPLQHZKHWKHUDQHWKDVEHHQFROODSVHGRQWR
DQRWKHUQHW
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHDFFBXVHUK
YRLG GLVSOD\BVLPXODWHGBQHWV
^
KDQGOH
PRGBKDQGOH
KDQGOH
VLPXODWHGBQHWBKDQGOH
KDQGOH
QHWBKDQGOH
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWVFRSHILUVWDUJXPHQWSDVVHGWRXVHUGHILQHGV\VWHPWDVN
DVVRFLDWHGZLWKWKLVURXWLQH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI,QPRGXOHV?QDFFBIHWFKBIXOOQDPHPRGBKDQGOH
QHWBKDQGOH QXOO
`
GLVSOD\QDPHRIHDFKFROODSVHGQHWDQGLWVQHWRIRULJLQ
ZKLOHQHWBKDQGOH DFFBQH[WBQHWPRGBKDQGOHQHWBKDQGOH
^
LIDFFBREMHFWBRIBW\SHQHWBKDQGOHDFF&ROODSVHG1HW
^
VLPXODWHGBQHWBKDQGOH DFFBKDQGOHBVLPXODWHGBQHWQHWBKDQGOH
LRBSULQWIQHWVZDVFROODSVHGRQWRQHWV?Q
DFFBIHWFKBQDPHQHWBKDQGOH
DFFBIHWFKBQDPHVLPXODWHGBQHWBKDQGOH
`
`
)LJXUH³8VLQJDFFBKDQGOHBVLPXODWHGBQHW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBWFKN
DFFBKDQGOHBWFKN
6\QRSVLV
*HWDKDQGOHIRUWKHVSHFLÀHGWLPLQJFKHFNRIDPRGXOHRUFHOO
6\QWD[
DFFBKDQGOHBWFKNPRGXOHBKDQGOHWLPLQJBFKHFNBW\SH
ILUVWBDUJBFRQQBQDPHILUVWBDUJBHGJHBW\SH
VHFRQGBDUJBFRQQBQDPHVHFRQGBDUJBHGJHBW\SH
ILUVWBDUJBFRQQBKDQGOHVHFRQGBDUJBFRQQBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
KDQGOH
'HVFULSWLRQ
+DQGOHWRDWLPLQJFKHFN
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
PRGXOHBKDQGOH
LQWHJHUFRQVWDQW
WLPLQJBFKHFNBW\SH
TXRWHGVWULQJRU
FKDU
ÀUVWBDUJBFRQQBQDPH
1DPHRIWKHQHWFRQQHFWHGWRÀUVWWLPLQJFKHFNDUJXPHQW
LQWHJHUFRQVWDQW
ÀUVWBDUJBHGJHBW\SH
(GJHRIWKHQHWFRQQHFWHGWRÀUVWWLPLQJFKHFNDUJXPHQW
+DQGOHRIWKHPRGXOH
2QHRIWKHIROORZLQJSUHGHÀQHGFRQVWDQWV
DFF+ROG
DFF6HWXS
DFF1RFKDQJH
DFF6NHZ
DFF3HULRG
DFF:LGWK
DFF5HFRYHU\
2QHRIWKHIROORZLQJSUHGHÀQHGFRQVWDQWV
DFF1HJHGJH
DFF1RHGJH
DFF3RVHGJH
RUDOLVWRIWKHIROORZLQJFRQVWDQWVVHSDUDWHGE\
DFF(GJH
DFF(GJH[
DFF(GJH[
RUDOLVWRIWKHIROORZLQJFRQVWDQWVVHSDUDWHGE\
DFF(GJH
DFF(GJH[
DFF(GJH[
&RQGLWLRQDO
TXRWHGVWULQJRU
FKDU
VHFRQGBDUJBFRQQBQDPH
1DPHRIWKHQHWFRQQHFWHGWRVHFRQGWLPLQJFKHFNDUJX
PHQWGHSHQGVRQW\SHRIWLPLQJFKHFN
&RQGLWLRQDO
LQWHJHUFRQVWDQW
VHFRQGBDUJBHGJHBW\SH
(GJHRIWKHQHWFRQQHFWHGWRVHFRQGWLPLQJFKHFNDUJX
PHQWGHSHQGVRQW\SHRIWLPLQJFKHFN
8VHVVDPHFRQVWDQWVDVÀUVWBDUJBHGJHBW\SH
2SWLRQDO
KDQGOH
ÀUVWBDUJBFRQQBKDQGOH
2SWLRQDO
KDQGOH
VHFRQGBDUJBFRQQBKDQGOH
5HODWHG
URXWLQHV
+DQGOHRIWKHQHWFRQQHFWHGWRÀUVWWLPLQJFKHFNDUJX
PHQWUHTXLUHGLIDFF(QDEOH$UJVLVVHWDQG
ÀUVWBDUJBFRQQBQDPHLVQXOO
+DQGOHRIWKHQHWFRQQHFWHGWRVHFRQGWLPLQJFKHFNDUJX
PHQWUHTXLUHGLIDFF(QDEOH$UJVLVVHWDQG
VHFRQGBDUJBFRQQBQDPHLVQXOO
8VHDFFBFRQÀJXUHDFF(QDEOH$UJV´DFFBKDQGOHBWFKNµWRHQDEOHWKHRSWLRQDOÀUVWBDUJBFRQQBKDQGOHDQG
VHFRQGBDUJBFRQQBKDQGOHDUJXPHQWV
7KH$&&URXWLQHDFFBKDQGOHBWFKNVKDOOUHWXUQDKDQGOHWRDWLPLQJFKHFNEDVHGRQDUJXPHQWVWKDWGHVFULEHWKH
W\SHRIWLPLQJFKHFNVLJQDOVXVHGDQGHGJHTXDOLÀHUVIRUWKHVLJQDOV7KHVLJQDOVXVHGWRGHVFULEHWKHWLPLQJFKHFN
VKDOOEHSDVVHGDVHLWKHUVLJQDOQDPHVSDVVHGDVHLWKHUDTXRWHGVWULQJRUDFKDUDFWHUVWULQJSRLQWHURUVLJQDOKDQGOHV
7KHQXPEHURIVLJQDODUJXPHQWVUHTXLUHGE\DFFBKDQGOHBWFKNVKDOOGHSHQGRQWKHW\SHRIWLPLQJFKHFN
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOHVKRZVKRZWKHQXPEHURIDUJXPHQWVIRUDFFBKDQGOHBWFKNLVGHWHUPLQHG
7DEOH³+RZDFFBKDQGOHBWFKNZRUNV
,I
DFFBKDQGOHBWFKNVKDOO
WFKNBW\SHLVDFF:LGWKRUDFF3HULRG
LJQRUHDUJXPHQWVVHFRQGBDUJBFRQQBQDPH
VHFRQGBDUJBHGJHBW\SHDQGRSWLRQDO
VHFRQGBDUJBFRQQBKDQGOH
WFKNBW\SHLVDFF+ROGDFF1RFKDQJHDFF5HFRYHU\DFF6HWXSRU
DFF6NHZ
XVHDUJXPHQWVVHFRQGBDUJBFRQQBQDPH
VHFRQGBDUJBHGJHBW\SHDQGRSWLRQDO
VHFRQGBDUJBFRQQBKDQGOH
'HIDXOWPRGHRU
DFFBFRQÀJXUHDFF(QDEOH$UJVQRBDFFBKDQGOHBWFKN
KDVEHHQFDOOHG
8VHWKHQDPHDUJXPHQWVDQGLJQRUHERWKRSWLRQDO
KDQGOHDUJXPHQWV
7KHURXWLQH
DFFBFRQÀJXUHDFF(QDEOH$UJVDFFBKDQGOHBWFKN
KDVEHHQFDOOHGDQGHLWKHUÀUVWBDUJBFRQQBQDPHRU
VHFRQGBDUJBFRQQBQDPHLVQXOO
8VHWKHDVVRFLDWHGKDQGOHDUJXPHQWRIWKHQXOORI
WKHQDPHDUJXPHQW³LIWKHQDPHDUJXPHQWLVQRW
QXOOWKHQDPHVKDOOEHXVHGDQGWKHDVVRFLDWHG
KDQGOHDUJXPHQWLJQRUHG
127(³8QXVHG DUJXPHQWV FDQ EH GURSSHG LI WKH\ GR QRW SUHFHGH DQ\ UHTXLUHG DUJXPHQWV RWKHUZLVH WKH XQXVHG DUJXPHQWV
VKRXOGEHVSHFLÀHGDVQXOO
7KHURXWLQHDFFBKDQGOHBWFKNVKDOOXVHSUHGHÀQHGHGJHJURXSFRQVWDQWVWRUHSUHVHQWJURXSVRIWUDQVLWLRQVDPRQJ
DQG;HGJHYDOXHVDVGHVFULEHGLQ7DEOH7KHURXWLQHVKDOOWUHDWWUDQVLWLRQVWRRUIURPDORJLF=DVWUDQVLWLRQV
WRRUIURPDORJLF;
7DEOH³(GJHJURXSFRQVWDQWV
(GJHJURXSFRQVWDQW
6HFWLRQ
'HVFULSWLRQRIHGJHWULJJHU
DFF3RVHGJH
DFF3RV(GJH
$Q\SRVLWLYHWUDQVLWLRQ
WR
WR[
[WR
DFF1HJHGJH
DFF1HJ(GJH
$Q\QHJDWLYHWUDQVLWLRQ
WR
WR[
[WR
DFF1RHGJH
DFF1R(GJH
$Q\WUDQVLWLRQ
WR
WR
WR[
[WR
WR[
[WR
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH URXWLQH DFFBKDQGOHBWFKN VKDOO UHFRJQL]H SUHGHÀQHG HGJHVSHFLÀF FRQVWDQWV WKDW UHSUHVHQW LQGLYLGXDO
WUDQVLWLRQVDPRQJDQG;HGJHYDOXHVWKDWWULJJHUWLPLQJFKHFNVDVGHVFULEHGLQ7DEOH
7DEOH³(GJHVSHFLÀFFRQVWDQWV
(GJHVSHFLÀFFRQVWDQW
'HVFULSWLRQRIHGJHWULJJHU
DFF(GJH
7UDQVLWLRQIURPWR
DFF(GJH[
7UDQVLWLRQIURPWR[
DFF(GJH[
7UDQVLWLRQIURP[WR
DFF(GJH
7UDQVLWLRQIURPWR
DFF(GJH[
7UDQVLWLRQIURPWR[
DFF(GJH[
7UDQVLWLRQIURP[WR
7KH9HULORJ +'/ DOORZV PXOWLSOH HGJHV WR EH VSHFLÀHG IRU WLPLQJ FKHFNV 7KH URXWLQH DFFBKDQGOHBWFKN VKDOO
UHFRJQL]HPXOWLSOHHGJHVXVLQJHGJHVXPV(GJHVXPVDUHOLVWVRIHGJHVSHFLÀFFRQVWDQWVFRQQHFWHGE\SOXVVLJQV
7KH\UHSUHVHQWWKH9HULORJ+'/HGJHFRQWUROVSHFLÀHUVXVHGE\SDUWLFXODUWLPLQJFKHFNV)LJXUHVKRZVDFDOO
WRDFFBKDQGOHBWFKNWKDWDFFHVVHVDZLGWKWLPLQJFKHFNFRQWDLQLQJHGJHFRQWUROVSHFLÀHUV
7KLV$&&URXWLQHFDOO
$FFHVVHVWKLVWLPLQJFKHFN
DFFBKDQGOHBWFKNFHOOBKDQGOH
DFF:LGWK
FON
DFF(GJHDFF(GJH[
ZLGWKHGJH>[@FONOLPLW
HGJHVXP
PRGHOV
HGJHFRQWUROVSHFLILHU
)LJXUH³(GJHVXPVPRGHOHGJHFRQWUROVSHFLÀHUV
7KHH[DPSOHVKRZQLQ)LJXUHXVHV DFFBKDQGOHBWFKNWRLGHQWLI\DOOFHOOVLQDPRGXOHWKDWFRQWDLQHLWKHURU
ERWKRIWKHIROORZLQJWLPLQJFKHFNV
³ $SHULRGWLPLQJFKHFNWULJJHUHGE\DSRVLWLYHHGJHRQWKHFORFNVLJQDOFON
³ $VHWXSWLPLQJFKHFNWULJJHUHGRQVLJQDOGE\DQ\WUDQVLWLRQDQGRQVLJQDOFONE\HLWKHURIWKHVHFORFN
HGJHWUDQVLWLRQVWRRU;WR
1RWHWKDWLQWKLVH[DPSOH
D
%RWK FDOOV WR DFFBKDQGOHBWFKN VXSSO\ QDPHV IRU DOO UHOHYDQW FRQQHFWLRQV WKHUHIRUH WKH RSWLRQDO KDQGOH
DUJXPHQWVDUHQRWVXSSOLHG
E
)RU SHULRG WLPLQJ FKHFNV DFFBKDQGOHBWFKN LJQRUHV WKH VHFRQGBDUJBFRQQBQDPH DQG
VHFRQGBDUJBHGJHBW\SHDUJXPHQWVWKHUHIRUHWKHVHDUJXPHQWVDUHQRWVXSSOLHG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHDFFBXVHUK
JHWBSVBWFKNV
^
KDQGOH
PRGXOHBKDQGOHSRUWBKDQGOHQHWBKDQGOHFHOOBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI0RGXOHLVV?QDFFBIHWFKBQDPHPRGXOHBKDQGOH
`
VFDQDOOFHOOVLQPRGXOHIRU
SHULRGWLPLQJFKHFNVWULJJHUHGE\DSRVLWLYHFORFNHGJH
VHWXSWLPLQJFKHFNVWULJJHUHGE\!DQG[!FORFNHGJHV
FHOOBKDQGOH QXOO
ZKLOHFHOOBKDQGOH DFFBQH[WBFHOOPRGXOHBKDQGOHFHOOBKDQGOH
^
LIDFFBKDQGOHBWFKNFHOOBKDQGOHDFF3HULRGFONDFF3RVHGJH
LRBSULQWISRVLWLYHFORFNHGJHWULJJHUVSHULRGFKHFNLQFHOOV?Q
DFFBIHWFKBIXOOQDPHFHOOBKDQGOH
LIDFFBKDQGOHBWFKNFHOOBKDQGOHDFF6HWXSGDFF1RHGJH
FONDFF(GJHDFF(GJH[
LRBSULQWIDQG[HGJHVWULJJHUVHWXSFKHFNLQFHOOV?Q
DFFBIHWFKBIXOOQDPHFHOOBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBKDQGOHBWFKN
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBWFKNDUJ
DFFBKDQGOHBWFKNDUJ
6\QRSVLV
*HWDKDQGOHIRUWKHWLPLQJFKHFNWHUPLQDOFRQQHFWHGWRWKHÀUVWDUJXPHQWRIDWLPLQJFKHFN
6\QWD[
DFFBKDQGOHBWFKNDUJWFKNBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDWLPLQJFKHFNWHUPLQDO
7\SH
1DPH
KDQGOH
WFKNBKDQGOH
'HVFULSWLRQ
+DQGOHRIDWLPLQJFKHFN
8VHDFFBKDQGOHBFRQQWRJHWWKHQHWFRQQHFWHGWRDWLPLQJFKHFNWHUPLQDO
7KH$&&URXWLQHDFFBKDQGOHBWFKNDUJVKDOOUHWXUQDKDQGOHWRWKHWLPLQJFKHFNWHUPLQDODVVRFLDWHGZLWKWKHÀUVW
DUJXPHQWRIDWLPLQJFKHFN
,QRUGHUWRWUDFHDWLPLQJFKHFNWHUPLQDOLQWKH9HULORJ+'/GHVFULSWLRQRUWRGLVSOD\WKHQDPHRIWKHWHUPLQDOLWLV
ÀUVWQHFHVVDU\WRREWDLQDKDQGOHWRWKHQHWFRQQHFWHGWRWKHWHUPLQDO7KHURXWLQHDFFBKDQGOHBFRQQZLWKWKHWLPLQJ
FKHFNWHUPLQDOKDQGOHDVWKHDUJXPHQWFDQEHXVHGWRREWDLQWKHQHWKDQGOH
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBKDQGOHBWFKNDUJ DQG DFFBKDQGOHBWFKNDUJ WR REWDLQ WKH QHWV
FRQQHFWHGWRWKHÀUVWDQGVHFRQGDUJXPHQWVRIHDFKVHWXSWLPLQJFKHFNLQHDFKFHOOXQGHUDPRGXOH
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQFOXGHDFFBXVHUK
VKRZBFKHFNBQHWV
^
KDQGOH
PRGXOHBKDQGOHFHOOBKDQGOH
KDQGOH
WFKNBKDQGOHWFKNDUJBKDQGOHWFKNDUJBKDQGOH
LQW
WFKNBW\SHFRXQWHU
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWIPRGXOHLVV?QDFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
`
VFDQDOOFHOOVLQPRGXOHIRUWLPLQJFKHFNV
FHOOBKDQGOH QXOO
ZKLOHFHOOBKDQGOH DFFBQH[WBFHOOPRGXOHBKDQGOHFHOOBKDQGOH
^
LRBSULQWIFHOOLVV?QDFFBIHWFKBIXOOQDPHFHOOBKDQGOH
FRXQWHU ZKLOHWFKNBKDQGOH DFFBQH[WBWFKNFHOOBKDQGOHWFKNBKDQGOH
^
JHWQHWVFRQQHFWHGWRWLPLQJFKHFNDUJXPHQWV
WFKNBW\SH DFFBIHWFKBW\SHWFKNBKDQGOH
LIWFKNBW\SH DFF6HWXS
^
FRXQWHU
LRBSULQWIIRUVHWXSFKHFNG?QFRXQWHU
WFKNDUJBKDQGOH DFFBKDQGOHBWFKNDUJWFKNBKDQGOH
WFKNDUJBKDQGOH DFFBKDQGOHBWFKNDUJWFKNBKDQGOH
LRBSULQWIGDWDQHWLVV?QUHIHUHQFHQHWLVV?Q
DFFBIHWFKBQDPHDFFBKDQGOHBFRQQWFKNDUJBKDQGOH
DFFBIHWFKBQDPHDFFBKDQGOHBFRQQWFKNDUJBKDQGOH
`
`
`
DFFBFORVH
)LJXUH³8VLQJDFFBKDQGOHBWFKNDUJDQGDFFBKDQGOHBWFKNDUJ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBWFKNDUJ
DFFBKDQGOHBWFKNDUJ
6\QRSVLV
*HWDKDQGOHIRUWKHWLPLQJFKHFNWHUPLQDOFRQQHFWHGWRWKHVHFRQGDUJXPHQWRIDWLPLQJFKHFN
6\QWD[
DFFBKDQGOHBWFKNDUJWFKNBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHWRDWLPLQJFKHFNWHUPLQDO
7\SH
1DPH
KDQGOH
WFKNBKDQGOH
'HVFULSWLRQ
+DQGOHRIDWLPLQJFKHFN
8VHDFFBKDQGOHBFRQQWRJHWWKHQHWFRQQHFWHGWRDWLPLQJFKHFNWHUPLQDO
7KH$&& URXWLQH DFFBKDQGOHBWFKNDUJ VKDOO UHWXUQ D KDQGOH WR WKH WLPLQJ FKHFN WHUPLQDO DVVRFLDWHG ZLWK WKH
VHFRQGDUJXPHQWRIDWLPLQJFKHFN
,QRUGHUWRWUDFHDWLPLQJFKHFNWHUPLQDOLQWKH9HULORJ+'/GHVFULSWLRQRUWRGLVSOD\WKHQDPHRIWKHWHUPLQDOLWLV
ÀUVWQHFHVVDU\WRREWDLQDKDQGOHWRWKHQHWFRQQHFWHGWRWKHWHUPLQDO7KHURXWLQHDFFBKDQGOHBFRQQZLWKWKHWLPLQJ
FKHFNWHUPLQDOKDQGOHDVWKHDUJXPHQWFDQEHXVHGWRREWDLQWKHQHWKDQGOH
5HIHUWR)LJXUHIRUDQH[DPSOHRIXVLQJDFFBKDQGOHBWFKNDUJ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBKDQGOHBWHUPLQDO
DFFBKDQGOHBWHUPLQDO
6\QRSVLV
*HWDKDQGOHIRUDSULPLWLYHWHUPLQDOEDVHGRQWKHSRVLWLRQRIWKHSULPLWLYHWHUPLQDO
6\QWD[
DFFBKDQGOHBWHUPLQDOSULPLWLYHBKDQGOHWHUPLQDOBLQGH[
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDSULPLWLYHWHUPLQDO
7\SH
1DPH
KDQGOH
SULPLWLYHBKDQGOH
LQW
WHUPLQDOBLQGH[
'HVFULSWLRQ
+DQGOHRIDSULPLWLYH
,QWHJHULQGH[RIWKHGHVLUHGWHUPLQDO
8VHDFFBKDQGOHBFRQQWRJHWWKHQHWFRQQHFWHGWRDSULPLWLYHWHUPLQDO
7KH$&&URXWLQHDFFBKDQGOHBWHUPLQDOVKDOOUHWXUQDKDQGOHRIDSULPLWLYHWHUPLQDOEDVHGRQWKHSRVLWLRQRIWKH
WHUPLQDOLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
7KHLQGH[RIDWHUPLQDOVKDOOEHLWVSRVLWLRQLQDJDWHVZLWFKRU8'3GHFODUDWLRQ7KHLQGLFHVVKDOOEHLQWHJHUVWKDW
VWDUWDW]HURDQGLQFUHDVHIURPOHIWWRULJKW7DEOHVKRZVKRZWHUPLQDOLQGLFHVDUHGHULYHG
7DEOH³'HULYLQJWHUPLQDOLQGLFHV
)RU
QDQGJRXWLQLQ
,QGLFHVVKDOOEH
IRUWHUPLQDORXW
IRUWHUPLQDOLQ
IRUWHUPLQDOLQ
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBKDQGOHBWHUPLQDO WR LGHQWLI\ WKH QDPH RI D QHW FRQQHFWHG WR D
SULPLWLYHWHUPLQDO
LQFOXGHDFFBXVHUK
SULQWBWHUPLQDOBQHWJDWHBKDQGOHWHUPBLQGH[
KDQGOH
JDWHBKDQGOH
LQW
WHUPBLQGH[
^
KDQGOH
WHUPBKDQGOH
WHUPBKDQGOH DFFBKDQGOHBWHUPLQDOJDWHBKDQGOHWHUPBLQGH[
LRBSULQWIVWHUPLQDOQHWGLVV?Q
DFFBIHWFKBQDPHJDWHBKDQGOHWHUPBLQGH[
DFFBIHWFKBQDPHDFFBKDQGOHBFRQQWHUPBKDQGOH
`
)LJXUH³8VLQJDFFBKDQGOHBWHUPLQDO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBWIDUJDFFBKDQGOHBLWIDUJ
DFFBKDQGOHBWIDUJDFFBKDQGOHBLWIDUJ
6\QRSVLV
*HWDKDQGOHIRUWKHVSHFLÀHGDUJXPHQWRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
6\QWD[
DFFBKDQGOHBWIDUJDUJXPHQWBQXPEHU
DFFBKDQGOHBLWIDUJDUJXPHQWBQXPEHULQVWDQFHBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHWRDQREMHFW
7\SH
1DPH
'HVFULSWLRQ
LQW
DUJXPHQWBQXPEHU
,QWHJHUQXPEHUWKDWUHIHUHQFHVDQDUJXPHQWLQWKHV\VWHP
WDVNRUIXQFWLRQFDOOE\LWVSRVLWLRQLQWKHDUJXPHQWOLVW
KDQGOH
LQVWDQFHBKDQGOH
+DQGOHWRDQLQVWDQFHRIDV\VWHPWDVNIXQFWLRQ
8VHDFFBIHWFKBWIDUJDQGUHODWHGURXWLQHVWRJHWWKHYDOXHRIDV\VWHPWDVNIXQFWLRQDUJXPHQW
7KH$&&URXWLQHDFFBKDQGOHBWIDUJVKDOOUHWXUQDKDQGOHWRDQDUJXPHQWLQWKHFXUUHQWLQVWDQFHRIDXVHUGHÀQHG
V\VWHP WDVNIXQFWLRQ 7KH $&& URXWLQH DFFBKDQGOHBLWIDUJ VKDOO UHWXUQ D KDQGOH WR DQ DUJXPHQW LQ D VSHFLÀF
LQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNIXQFWLRQ
$UJXPHQWQXPEHUVVKDOOVWDUWDWDQGLQFUHDVHIURPOHIWWRULJKWLQWKHRUGHUWKDWWKH\DSSHDULQWKHV\VWHPWDVNRU
IXQFWLRQFDOO
7KHV\VWHPWDVNIXQFWLRQDUJXPHQWFDQEHDQXQTXRWHGLGHQWLÀHUQDPHRI
³ $PRGXOHLQVWDQFH
³ $QHW
7KHV\VWHPWDVNIXQFWLRQDUJXPHQWFDQEHDTXRWHGVWULQJFRQWDLQLQJWKHQDPHRI
³
³
³
³
$PRGXOHLQVWDQFH
$SULPLWLYHLQVWDQFH
$QHWUHJLVWHURUYDULDEOH
$OHJDOELWVHOHFWRIDQHWUHJLVWHURUYDULDEOH
7DEOH³+RZDFFBKDQGOHBWIDUJRSHUDWHV
:KHQ
DFFBKDQGOHBWIDUJVKDOO
7KHV\VWHPWDVNRUIXQFWLRQDUJXPHQWLVDQ
XQTXRWHG9HULORJ+'/LGHQWLÀHUIRUDQHWRUPRG
XOHLQVWDQFH
5HWXUQDKDQGOHWRWKHREMHFW
7KHV\VWHPWDVNRUIXQFWLRQDUJXPHQWLVDTXRWHG
VWULQJQDPHRIDQ\REMHFW
)XQFWLRQVLPLODUWRDFFBKDQGOHBREMHFWE\VHDUFKLQJIRUDQ
REMHFWPDWFKLQJWKHVWULQJDQGLIIRXQGUHWXUQLQJDKDQGOHWR
WKHREMHFW
7KHREMHFWVKDOOEHVHDUFKHGIRULQWKHIROORZLQJRUGHU
D7KHFXUUHQW3/,VFRSH>DVVHWE\DFFBVHWBVFRSH@
E7KHVFRSHRIWKHV\VWHPWDVNIXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBKDQGOHBWIDUJ LQ D &ODQJXDJH DSSOLFDWLRQ WKDW KDV WKH IROORZLQJ
FKDUDFWHULVWLFV
D
,WFKDQJHVWKHULVHDQGIDOOGHOD\VRIDJDWH
E
,WWDNHVWKUHHDUJXPHQWV³WKHÀUVWLVD9HULORJ+'/JDWHDQGWKHRWKHUVDUHGRXEOHSUHFLVLRQÁRDWLQJSRLQW
FRQVWDQWVUHSUHVHQWLQJULVHDQGIDOOGHOD\YDOXHV
F
,WDVVRFLDWHVWKURXJKWKH3/,LQWHUIDFHPHFKDQLVPZLWKD9HULORJ+'/V\VWHPWDVNFDOOHGWLPLQJBWDVN
7RLQYRNHWKHDSSOLFDWLRQWKHV\VWHPWDVNWLPLQJBWDVNLVFDOOHGIURPWKH9HULORJ+'/VRXUFHGHVFULSWLRQDVLQ
WKHIROORZLQJVDPSOHFDOO
WLPLQJBWDVNWRSJ
:KHQ9HULORJHQFRXQWHUVWKLVFDOOLWH[HFXWHVQHZBWLPLQJ$KDQGOHWRWKHÀUVWDUJXPHQWWKHJDWHWRSJLV
UHWULHYHG XVLQJ DFFBKDQGOHBWIDUJ ZKLOH WKH RWKHU WZR DUJXPHQWV³WKH GHOD\ YDOXHV³DUH UHWULHYHG XVLQJ
DFFBIHWFKBWIDUJ
LQFOXGHDFFBXVHUK
QHZBWLPLQJ
^
KDQGOH
JDWHBKDQGOH
GRXEOH
QHZBULVHQHZBIDOO
LQLWLDOL]HDQGFRQILJXUH$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
DFFBFRQILJXUHDFF7R+L='HOD\PD[
JHWKDQGOHWRJDWH
JDWHBKDQGOH DFFBKDQGOHBWIDUJ
JHWQHZGHOD\YDOXHV
QHZBULVH DFFBIHWFKBWIDUJ
QHZBIDOO DFFBIHWFKBWIDUJ
WRSJ
SODFHQHZGHOD\VRQWKHJDWH
DFFBUHSODFHBGHOD\VJDWHBKDQGOHQHZBULVHQHZBIDOO
UHSRUWDFWLRQ
LRBSULQWI3ULPLWLYHVKDVQHZGHOD\VGG?Q
DFFBIHWFKBIXOOQDPHJDWHBKDQGOH
QHZBULVHQHZBIDOO
`
DFFBFORVH
)LJXUH³8VLQJDFFBKDQGOHBWIDUJ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBKDQGOHBWÀQVW
DFFBKDQGOHBWÀQVW
6\QRSVLV
*HWDKDQGOHWRWKHFXUUHQWXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQFDOO
6\QWD[
DFFBKDQGOHBWILQVW
7\SH
5HWXUQV
KDQGOH
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBIHWFKBW\SHRUDFFBIHWFKBIXOOW\SHWRGHWHUPLQHWKHW\SHRIWKHKDQGOHUHWXUQHG
7KH$&&URXWLQHDFFBKDQGOHBWÀQVWLVXVHGWRREWDLQDKDQGOHRIWKHXVHUGHÀQHGV\VWHPWDVNIXQFWLRQFDOOWKDW
LQYRNHGWKHFXUUHQW3/,DSSOLFDWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBLQLWLDOL]H
DFFBLQLWLDOL]H
6\QRSVLV
,QLWLDOL]HVWKHHQYLURQPHQWIRU$&&URXWLQHV
6\QWD[
DFFBLQLWLDOL]H
7\SH
5HWXUQV
YRLG
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBFRQÀJXUHWRVHWFRQÀJXUDWLRQSDUDPHWHUDIWHUFDOOLQJDFFBLQLWLDOL]H
8VHDFFBFORVHDWWKHHQGRIDURXWLQHWKDWFDOOHGDFFBLQLWLDOL]H
7KH$&&URXWLQHDFFBLQLWLDOL]HVKDOOSHUIRUPWKHIROORZLQJIXQFWLRQV
³ ,QLWLDOL]HDOOFRQÀJXUDWLRQSDUDPHWHUVWRWKHLUGHIDXOWYDOXHV
³ $OORFDWHPHPRU\IRUVWULQJKDQGOLQJDQGRWKHULQWHUQDOXVHV
7KHURXWLQHDFFBLQLWLDOL]HVKRXOGEHFDOOHGLQD&ODQJXDJHDSSOLFDWLRQEHIRUHLQYRNLQJDQ\RWKHU$&&URXWLQHV
3RWHQWLDOO\PXOWLSOH3/,DSSOLFDWLRQVUXQQLQJLQWKHVDPHVLPXODWLRQVHVVLRQFDQLQWHUIHUHZLWKHDFKRWKHUEHFDXVH
WKH\VKDUHWKHVDPHVHWRIFRQÀJXUDWLRQSDUDPHWHUV7RJXDUGDJDLQVWDSSOLFDWLRQLQWHUIHUHQFHERWK DFFBLQLWLDOL]H
DQGDFFBFORVHUHVHWDQ\FRQÀJXUDWLRQSDUDPHWHUVWKDWKDYHFKDQJHGIURPWKHLUGHIDXOWYDOXHV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBLQLWLDOL]HWRLQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
LQFOXGHDFFBXVHUK
DSSHQGBPLQW\SPD[BGHOD\V
^
KDQGOH
SULP
GRXEOH
GHOD\BDUUD\>@
LQW
L
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
FRQILJXUH$&&URXWLQHHQYLURQPHQW
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
DFFBFRQILJXUHDFF0LQ7\S0D['HOD\VWUXH
`
DSSHQGGHOD\VIRUSULPLWLYHDVVSHFLILHGLQWDVNIXQFWLRQDUJV
SULP DFFBKDQGOHBWIDUJ
IRUL LL
GHOD\BDUUD\>L@ DFFBIHWFKBWIDUJL
DFFBDSSHQGBGHOD\VSULPGHOD\BDUUD\
)LJXUH³8VLQJDFFBLQLWLDOL]H
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[W
DFFBQH[W
6\QRSVLV
*HWKDQGOHVWRREMHFWVRIHDFKW\SHVSHFLÀHGLQDQDUUD\ZLWKLQWKHUHIHUHQFHVFRSH
6\QWD[
DFFBQH[WREMHFWBW\SHBDUUD\UHIHUHQFHBKDQGOHREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
KDQGOH
+DQGOHRIWKHREMHFWIRXQG
7\SH
1DPH
'HVFULSWLRQ
VWDWLFLQWDUUD\
REMHFWBW\SHBDUUD\
6WDWLFLQWHJHUDUUD\FRQWDLQLQJRQHRUPRUHSUHGHÀQHGLQWH
JHUFRQVWDQWVWKDWUHSUHVHQWWKHW\SHVRIREMHFWVGHVLUHGWKH
ODVWHOHPHQWKDVWREH
KDQGOH
UHIHUHQFHBKDQGOH
+DQGOHRIDVFRSH
KDQGOH
REMHFWBKDQGOH
+DQGOHRIWKHSUHYLRXVREMHFWIRXQGLQLWLDOO\QXOO
7KH$&&URXWLQHDFFBQH[WVKDOOVFDQIRUDQGUHWXUQKDQGOHVWRRQHRUPRUHW\SHVRIREMHFWVZLWKLQDVFRSH7KLV
URXWLQH SHUIRUPV D PRUH JHQHUDO IXQFWLRQ WKDQ WKH REMHFWVSHFLÀFDFFBQH[WB URXWLQHV VXFK DV DFFBQH[WBQHW DQG
DFFBQH[WBSULPLWLYHZKLFKVFDQRQO\RQHW\SHRIREMHFWZLWKLQDVFRSH
7KHREMHFWVIRUZKLFKDFFBQH[WLVWRVFDQVKDOOEHOLVWHGDVDQDUUD\RIREMHFWW\SHVRUIXOOW\SHVLQDVWDWLFLQWHJHU
DUUD\7KHDUUD\VKDOOFRQWDLQDQ\QXPEHUDQGFRPELQDWLRQRIWKHSUHGHÀQHGLQWHJHUFRQVWDQWVOLVWHGLQ7DEOH
7KHDUUD\OLVWVKDOOEHWHUPLQDWHGE\D7KHURXWLQHDFFBQH[WFDQUHWXUQREMHFWVLQDQDUELWUDU\RUGHU
7KHIROORZLQJ&ODQJXDJHVWDWHPHQWLVDQH[DPSOHRIGHFODULQJDQDUUD\RIREMHFWW\SHVFDOOHGQHWBUHJBOLVW
VWDWLFLQWQHWBUHJBOLVW>@ ^DFF1HWDFF5HJLVWHU`
:KHQ WKLV DUUD\ LV SDVVHG WR DFFBQH[W WKH $&& URXWLQH VKDOO UHWXUQ KDQGOHV WR QHWV DQG UHJLVWHUV ZLWKLQ WKH
UHIHUHQFHREMHFW
1RWH WKDW D9HULORJ +'/ IXQFWLRQ FRQWDLQV DQ REMHFW ZLWK WKH VDPH QDPH VL]H DQG W\SH DV WKH IXQFWLRQ ,I WKH
IXQFWLRQLVVFDQQHGIRUREMHFWVRIWKHW\SHRIWKHIXQFWLRQDKDQGOHWRWKLVREMHFWVKDOOEHUHWXUQHG
7KHREMHFWVIRUZKLFKDFFBQH[WVKDOOREWDLQKDQGOHVDUHOLVWHGLQ7DEOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³7\SHDQGIXOOW\SHFRQVWDQWVVXSSRUWHGE\DFFBQH[W
'HVFULSWLRQ
*HQHUDOREMHFWW\SHV
,QWHJHUYDULDEOH
0RGXOH
1DPHGHYHQW
1HW
0RGXOHIXOOW\SHV
DFF0RGXOH
DFF1DPHG(YHQW
DFF1HW
DFF3ULPLWLYH
5HDOYDULDEOH
DFF5HDO9DU
5HJLVWHU
DFF5HJLVWHU
7LPHYDULDEOH
DFF7LPH9DU
7RSOHYHOPRGXOH
DFF7RS0RGXOH
0RGXOHLQVWDQFH
DFF0RGXOH,QVWDQFH
:LUHQHWV
:LUHG$1'QHWV
6HFWLRQ
DFF,QWHJHU9DU
3ULPLWLYH
&HOOPRGXOHLQVWDQFH
1HWIXOOW\SHV
3UHGHÀQHGLQWHJHUFRQVWDQW
DFF&HOO,QVWDQFH
DFF:LUH
DFF7UL
DFF:DQG
DFF7ULDQG
:LUHG25QHWV
DFF:RU
DFF7ULRU
3XOOGRZQSXOOXSQHWV
DFF7UL
DFF7UL
6XSSO\QHWV
DFF6XSSO\
DFF6XSSO\
6WRUDJHQHWV
DFF7ULUHJ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³7\SHDQGIXOOW\SHFRQVWDQWVVXSSRUWHGE\DFFBQH[WFRQWLQXHG
'HVFULSWLRQ
3ULPLWLYHIXOOW\SHV
1LQSXWRXWSXWJDWHV
DFF$QG*DWH
DFF1DQG*DWH
DFF1RU*DWH
DFF2U*DWH
DFF;QRU*DWH
DFF;RU*DWH
LQSXW1RXWSXWJDWHV
DFF%XI*DWH
DFF1RW*DWH
7ULVWDWHJDWHV
DFF%XÀI
DFF%XÀI
DFF1RWLI
DFF1RWLI
026JDWHV
DFF1PRV*DWH
DFF3PRV*DWH
DFF5QPRV*DWH
DFF5SPRV*DWH
&026JDWHV
DFF&PRV*DWH
DFF5FPRV*DWH
%LGLUHFWLRQDOSDVVJDWHV
DFF5WUDQ*DWH
DFF5WUDQLI*DWH
DFF5WUDQLI*DWH
DFF7UDQ*DWH
DFF7UDQLI*DWH
DFF7UDQLI*DWH
3XOOGRZQSXOOXSJDWHV
DFF3XOOGRZQ*DWH
DFF3XOO8S*DWH
&RPELQDWLRQDO
8'3
6HTXHQWLDO
8'3
3UHGHÀQHGLQWHJHUFRQVWDQW
DFF&RPE3ULP
DFF6HT3ULP
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WWRÀQGDOOQHWVDQGUHJLVWHUVLQDPRGXOH7KHDSSOLFDWLRQWKHQ
GLVSOD\VWKHQDPHVRIWKHVHQHWVDQGUHJLVWHUV
LQFOXGH´DFFBXVHUKµ
YRLGGLVSOD\BQHWVBDQGBUHJLVWHUV
^
VWDWLF
LQW
QHWBUHJBOLVW>@ ^DFF1HWDFF5HJLVWHU`
KDQGOH
PRGBKDQGOHREMBKDQGOH
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOHILUVWDUJXPHQWSDVVHGWR
XVHUGHILQHGV\VWHPWDVNDVVRFLDWHGZLWKWKLVURXWLQH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI0RGXOHVFRQWDLQVWKHVHQHWVDQGUHJLVWHUV?Q
DFFBIHWFKBIXOOQDPHPRGBKDQGOH
`
GLVSOD\QDPHVRIDOOQHWVDQGUHJLVWHUVLQWKHPRGXOH
REMBKDQGOH QXOO
ZKLOHREMBKDQGOH DFFBQH[WQHWBUHJBOLVWPRGBKDQGOHREMBKDQGOH
LRBSULQWIV?QDFFBIHWFKBQDPHREMBKDQGOH
)LJXUH³8VLQJDFFBQH[W
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBELW
DFFBQH[WBELW
6\QRSVLV
*HWKDQGOHVWRELWVLQDSRUWRUH[SDQGHGYHFWRUQHW
6\QWD[
DFFBQH[WBELWUHIHUHQFHBKDQGOHELWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDSRUWRUQHWELW
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
ELWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDSRUWRUQHW
+DQGOHRIWKHSUHYLRXVELWIRXQGLQLWLDOO\QXOO
8VHDFFBQH[WBSRUWWRUHWXUQWKHQH[WSRUWRIDPRGXOH
8VHDFFBKDQGOHBSRUWWRUHWXUQWKHKDQGOHIRUDPRGXOHSRUW
8VHDFFBREMHFWBRIBW\SHWRGHWHUPLQHLIDYHFWRUQHWLVH[SDQGHG
7KH$&&URXWLQHDFFBQH[WBELWVKDOOREWDLQKDQGOHVWRWKHELWVRIDYHFWRUSRUWRUDQH[SDQGHGYHFWRUQHW
$QH[SDQGHGYHFWRULVYHFWRUIRUZKLFKDVRIWZDUHSURGXFWVKDOOSHUPLWDFFHVVWRWKHGLVFUHWHELWVRIWKHYHFWRU7KH
URXWLQH DFFBREMHFWBRIBW\SH FDQ EH XVHG WR GHWHUPLQH LI D YHFWRU UHIHUHQFH KDQGOH LV H[SDQGHG EHIRUH FDOOLQJ
DFFBQH[WBELWZLWKWKHYHFWRUKDQGOH)RUH[DPSOH
LIDFFBREMHFWBRIBW\SHQHWBKDQGOHDFF([SDQGHG9HFWRU
ZKLOHELWBKDQGOH DFFBQH[WBELWQHWBKDQGOHELWBKDQGOH
:KHQ WKH UHIHUHQFHBKDQGOH REMHFW LV D YHFWRU WKH ÀUVW FDOO WR DFFBQH[WBELW VKDOO UHWXUQ WKH KDQGOH WR WKH PVE
OHIWPRVWELWRIWKHREMHFW6XEVHTXHQWFDOOVVKDOOUHWXUQWKHKDQGOHVWRWKHUHPDLQLQJELWVGRZQWRWKHOVEULJKWPRVW
ELW 7KH FDOO DIWHU WKH UHWXUQ RI WKH KDQGOH WR WKH OVE UHWXUQV QXOO :KHQ WKH UHIHUHQFHBKDQGOH LV VFDODU
DFFBQH[WBELWVKDOOWUHDWWKHREMHFWDVDELWYHFWRU
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBELWWRGLVSOD\WKHORZHUFRQQHFWLRQRIHDFKELWRIDSRUW
LQFOXGHDFFBXVHUK
GLVSOD\BSRUWBELWVPRGXOHBKDQGOHSRUWBQXPEHU
KDQGOH
PRGXOHBKDQGOH
LQW
SRUWBQXPEHU
^
KDQGOH
SRUWBKDQGOHELWBKDQGOH
JHWKDQGOHIRUSRUW
SRUWBKDQGOH DFFBKDQGOHBSRUWPRGXOHBKDQGOHSRUWBQXPEHU
`
GLVSOD\SRUWQXPEHUDQGPRGXOHLQVWDQFHQDPH
LRBSULQWI3RUWGRIPRGXOHVFRQWDLQVWKHIROORZLQJELWV?Q
SRUWBQXPEHUDFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
GLVSOD\ORZHUKLHUDUFKLFDOFRQQHFWLRQRIHDFKELW
ELWBKDQGOH QXOO
ZKLOHELWBKDQGOH DFFBQH[WBELWSRUWBKDQGOHELWBKDQGOH
LRBSULQWIV?QDFFBIHWFKBIXOOQDPHELWBKDQGOH
)LJXUH³8VLQJDFFBQH[WBELWZLWKPRGXOHSRUWV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBELWWRDVVLJQD9&/PRQLWRUÁDJWRHDFKELWRIDYHFWRUQHW
LQFOXGHDFFBXVHUK
YRLGPRQLWRUBELWV
^
KDQGOH
ELWBKDQGOHQHWBKDQGOHPRGBKDQGOH
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUV\VWHPWDVNDUJXPHQWDVVRFLDWHGZLWKWKLVURXWLQH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
JHWKDQGOHVWRDOOQHWVLQWKHPRGXOH
QHWBKDQGOH QXOO
ZKLOHQHWBKDQGOH DFFBQH[WBQHWPRGBKDQGOHQHWBKDQGOH
^
DGG9&/PRQLWRUHDFKELWRIH[SDQGHGYHFWRUQHWV
LIDFFBREMHFWBRIBW\SHQHWBKDQGOHDFF([SDQGHG9HFWRU
^
ELWBKDQGOH QXOO
ZKLOHELWBKDQGOH DFFBQH[WBELWQHWBKDQGOHELWBKDQGOH
DFFBYFOBDGGELWBKDQGOHQHWBFRQVXPHUQXOOYFOBYHULORJBORJLF
`
`
`
)LJXUH³8VLQJDFFBQH[WBELWZLWKDYHFWRUQHW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBFHOO
DFFBQH[WBFHOO
6\QRSVLV
*HWKDQGOHVWRFHOOLQVWDQFHVZLWKLQDUHJLRQWKDWLQFOXGHVWKHHQWLUHKLHUDUFK\EHORZDPRGXOH
6\QWD[
DFFBQH[WBFHOOUHIHUHQFHBKDQGOHFHOOBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDFHOOPRGXOH
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
FHOOBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVFHOOIRXQGLQLWLDOO\QXOO
7KH$&& URXWLQH DFFBQH[WBFHOO VKDOO UHWXUQ KDQGOHV WR WKH FHOO PRGXOH LQVWDQFHV LQ WKH UHIHUHQFH VFRSH DQG DOO
PRGXOHLQVWDQFHVFRSHVEHORZWKHUHIHUHQFHVFRSH7KHURXWLQHVKDOOQRWÀQGFHOOVWKDWDUHLQVWDQWLDWHGLQVLGHRWKHU
FHOOV
$FHOOLQVWDQFHVKDOOEHDPRGXOHLQVWDQFHWKDWKDVHLWKHURIWKHVHFKDUDFWHULVWLFV
³ 7KHPRGXOHGHÀQLWLRQDSSHDUVEHWZHHQWKHFRPSLOHUGLUHFWLYHVCFHOOGHILQHDQGCHQGFHOOGHILQH
³ 7KHPRGXOHGHÀQLWLRQLVLQDPRGHOOLEUDU\ZKHUHDOLEUDU\LVDFROOHFWLRQRIPRGXOHGHÀQLWLRQVLQDÀOHRU
GLUHFWRU\WKDWDUHUHDGE\OLEUDU\LQYRFDWLRQRSWLRQV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBFHOOWROLVWDOOFHOOLQVWDQFHVDWRUEHORZDJLYHQKLHUDUFK\VFRSH
LQFOXGHDFFBXVHUK
OLVWBFHOOV
^
KDQGOH
PRGXOHBKDQGOHFHOOBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWIVFRQWDLQVWKHIROORZLQJFHOOV?Q
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
GLVSOD\QDPHVRIDOOFHOOVLQWKHPRGXOH
FHOOBKDQGOH QXOO
ZKLOHFHOOBKDQGOH DFFBQH[WBFHOOPRGXOHBKDQGOHFHOOBKDQGOH
LRBSULQWIV?QDFFBIHWFKBIXOOQDPHFHOOBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBFHOO
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBFHOOBORDG
DFFBQH[WBFHOOBORDG
6\QRSVLV
*HWKDQGOHVIRUFHOOORDGVRQDQHW
6\QWD[
DFFBQH[WBFHOOBORDGUHIHUHQFHBKDQGOHORDGBKDQGOH
7\SH
5HWXUQV
KDQGOH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRIDSULPLWLYHLQSXWWHUPLQDO
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
ORDGBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHQHW
+DQGOHRIWKHSUHYLRXVORDGIRXQGLQLWLDOO\QXOO
8VHDFFBQH[WBORDGWRJHWDKDQGOHWRDOOSULPLWLYHLQSXWWHUPLQDOORDGV
7KH$&&URXWLQHDFFBQH[WBFHOOBORDGVKDOOUHWXUQKDQGOHVWRWKHFHOOPRGXOHLQVWDQFHVWKDWDUHGULYHQE\DQHW7KH
KDQGOHIRUDFHOOORDGVKDOOEHDSULPLWLYHLQSXWWHUPLQDOFRQQHFWHGWRDQLQSXWRULQRXWSRUWRIWKHFHOOORDGLQVWDQFH
7KHURXWLQHVDFFBQH[WBORDGDQGDFFBQH[WBFHOOBORDGKDYHGLIIHUHQWIXQFWLRQDOLWLHV7KHURXWLQHDFFBQH[WBORDG
VKDOOUHWXUQHYHU\SULPLWLYHLQSXWWHUPLQDOGULYHQE\DQHWZKHWKHULWLVLQVLGHDFHOORUDPRGXOHLQVWDQFH7KHURXWLQH
DFFBQH[WBFHOOBORDGVKDOOUHWXUQRQO\RQHSULPLWLYHLQSXWWHUPLQDOSHUFHOOLQSXWRULQRXWSRUWGULYHQE\DQHW)LJXUH
LOOXVWUDWHV WKH GLIIHUHQFH XVLQJ D FLUFXLW LQ ZKLFK QHW GULYHV SULPLWLYH JDWHV LQ FHOO FHOO DQG
PRGXOH )RU WKLV FLUFXLW DFFBQH[WBORDG UHWXUQV IRXU SULPLWLYH LQSXW WHUPLQDOV DV ORDGV RQ QHW ZKLOH
DFFBQH[WBFHOOBORDGUHWXUQVWZRSULPLWLYHLQSXWWHUPLQDOVDVORDGVRQQHW
FHOO
QHW
FHOO
PRGXOH
DFFBQH[WBORDG
UHWXUQVIRXUSULPLWLYH
LQSXWWHUPLQDOV
DFFBQH[WBFHOOBORDG
UHWXUQVWZRSULPLWLYH
LQSXWWHUPLQDOV
)LJXUH³7KHGLIIHUHQFHEHWZHHQDFFBQH[WBORDGDQGDFFBQH[WBFHOOBORDG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBFHOOBORDGWRÀQGDOOFHOOORDGVRQDQHW
LQFOXGHDFFBXVHUK
JHWBFHOOBORDGV
^
KDQGOH
QHWBKDQGOH
KDQGOH
ORDGBKDQGOHORDGBQHWBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUQHW
QHWBKDQGOH DFFBKDQGOHBWIDUJ
`
GLVSOD\QDPHVRIDOOFHOOORDGVRQWKHQHW
ORDGBKDQGOH QXOO
ZKLOHORDGBKDQGOH DFFBQH[WBFHOOBORDGQHWBKDQGOHORDGBKDQGOH
^
ORDGBQHWBKDQGOH DFFBKDQGOHBFRQQORDGBKDQGOH
LRBSULQWI&HOOORDGLVFRQQHFWHGWRV?Q
DFFBIHWFKBIXOOQDPHORDGBQHWBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBFHOOBORDG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBFKLOG
DFFBQH[WBFKLOG
6\QRSVLV
*HWKDQGOHVIRUFKLOGUHQRIDPRGXOH
6\QWD[
DFFBQH[WBFKLOGUHIHUHQFHBKDQGOHFKLOGBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDPRGXOHLQVWDQFH
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
FKLOGBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVFKLOGIRXQGLQLWLDOO\QXOO
7KH $&& URXWLQH DFFBQH[WBFKLOG VKDOO UHWXUQ KDQGOHV WR WKH PRGXOH LQVWDQFHV FKLOGUHQ ZLWKLQ WKH UHIHUHQFH
PRGXOH7KHURXWLQHVKDOODOVRUHWXUQKDQGOHVWRWRSOHYHOPRGXOHVDVVKRZQLQ7DEOH
7DEOH³+RZDFFBQH[WBFKLOGZRUNV
:KHQ
DFFBQH[WBFKLOGVKDOO
7KHUHIHUHQFHBKDQGOHLVQRWQXOO
6FDQIRUPRGXOHVLQVWDQWLDWHGLQVLGHWKHPRGXOHDVVRFLDWHG
ZLWKUHIHUHQFHBKDQGOH
7KHUHIHUHQFHBKDQGOHLVQXOO
6FDQIRUWRSOHYHOPRGXOHVVDPHDVDFFBQH[WBWRSPRG
7KH$&&URXWLQHDFFBQH[WBWRSPRGGRHVQRWZRUNZLWKDFFBFROOHFWRUDFFBFRXQWEXWDFFBQH[WBFKLOGZLWKD
QXOOUHIHUHQFHKDQGOHDUJXPHQWFDQEHXVHGLQSODFHRIDFFBQH[WBWRSPRG)RUH[DPSOH
DFFBFRXQWDFFBQH[WBFKLOGQXOOFRXQWVWRSOHYHOPRGXOHV
DFFBFROOHFWDFFBQH[WBFKLOGQXOOFRXQWFROOHFWWRSOHYHOPRGXOHV
)LJXUHVKRZVWKHXVHRIDFFBQH[WBFKLOGWRGLVSOD\WKHQDPHVRIDOOPRGXOHVLQVWDQWLDWHGZLWKLQDPRGXOH
LQFOXGHDFFBXVHUK
SULQWBFKLOGUHQPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH
FKLOGBKDQGOH
LRBSULQWI0RGXOHVFRQWDLQVWKHIROORZLQJPRGXOHLQVWDQFHV?Q
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
FKLOGBKDQGOH QXOO
ZKLOHFKLOGBKDQGOH DFFBQH[WBFKLOGPRGXOHBKDQGOHFKLOGBKDQGOH
LRBSULQWIV?QDFFBIHWFKBQDPHFKLOGBKDQGOH
`
)LJXUH³8VLQJDFFBQH[WBFKLOG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBGULYHU
DFFBQH[WBGULYHU
6\QRSVLV
*HWKDQGOHVWRSULPLWLYHWHUPLQDOVWKDWGULYHDQHW
6\QWD[
DFFBQH[WBGULYHUUHIHUHQFHBKDQGOHGULYHUBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDSULPLWLYHWHUPLQDO
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
GULYHUBKDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
+DQGOHRIWKHSUHYLRXVGULYHUIRXQGLQLWLDOO\QXOO
7KH$&&URXWLQHDFFBQH[WBGULYHUVKDOOUHWXUQKDQGOHVWRWKHSULPLWLYHRXWSXWRULQRXWWHUPLQDOVWKDWGULYHDQHW
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBGULYHUWRGHWHUPLQHZKLFKWHUPLQDOVRIDSULPLWLYHGULYHDQHW
LQFOXGHDFFBXVHUK
SULQWBGULYHUVQHWBKDQGOH
KDQGOH
QHWBKDQGOH
^
KDQGOH
SULPLWLYHBKDQGOH
KDQGOH
GULYHUBKDQGOH
LRBSULQWI1HWVLVGULYHQE\WKHIROORZLQJSULPLWLYHV?Q
DFFBIHWFKBIXOOQDPHQHWBKDQGOH
`
JHWSULPLWLYHWKDWRZQVHDFKWHUPLQDOWKDWGULYHVWKHQHW
GULYHUBKDQGOH QXOO
ZKLOHGULYHUBKDQGOH DFFBQH[WBGULYHUQHWBKDQGOHGULYHUBKDQGOH
^
SULPLWLYHBKDQGOH DFFBKDQGOHBSDUHQWGULYHUBKDQGOH
LRBSULQWIV?Q
DFFBIHWFKBIXOOQDPHSULPLWLYHBKDQGOH
`
)LJXUH³8VLQJDFFBQH[WBGULYHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBKLFRQQ
DFFBQH[WBKLFRQQ
6\QRSVLV
*HWKDQGOHVIRUKLHUDUFKLFDOO\KLJKHUQHWFRQQHFWLRQVWRDPRGXOHSRUW
6\QWD[
DFFBQH[WBKLFRQQUHIHUHQFHBKDQGOHQHWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SRUWBKDQGOH
+DQGOHRIDSRUW
KDQGOH
QHWBKDQGOH
+DQGOHRIWKHSUHYLRXVQHWIRXQGLQLWLDOO\QXOO
8VHDFFBKDQGOHBKLFRQQWRJHWDKDQGOHWRKLHUDUFKLFDOO\KLJKHUFRQQHFWLRQRIDVSHFLÀFSRUWELW
8VHDFFBQH[WBORFRQQWRJHWKDQGOHVWRWKHKLHUDUFKLFDOO\ORZHUFRQQHFWLRQ
7KH$&&URXWLQHDFFBQH[WBKLFRQQVKDOOUHWXUQKDQGOHVWRWKHKLHUDUFKLFDOO\KLJKHUQHWFRQQHFWLRQVWRDPRGXOH
SRUW$KLHUDUFKLFDOO\KLJKHUFRQQHFWLRQVKDOOEHWKHSDUWRIWKHQHWWKDWDSSHDUVRXWVLGHWKHPRGXOHDVVKRZQLQWKH
IROORZLQJGLDJUDP
PRGXOH
ORFRQQ
ORZHUQHWFRQQHFWLRQ
PRGXOHSRUW
KLFRQQ
KLJKHUQHWFRQQHFWLRQ
:KHQWKHUHIHUHQFHKDQGOHSDVVHGWRDFFBQH[WBKLFRQQLVDYHFWRUSRUWWKHURXWLQHVKDOOUHWXUQWKHKLFRQQQHWVELW
E\ELWVWDUWLQJZLWKWKHPVEOHIWPRVWELWDQGHQGLQJZLWKWKHOVEULJKWPRVWELW
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBQH[WBKLFRQQ DQG DFFBQH[WBORFRQQ WR ÀQG DQG GLVSOD\ DOO QHW
FRQQHFWLRQVPDGHH[WHUQDOO\KLFRQQDQGLQWHUQDOO\ORFRQQWRDPRGXOHSRUW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
GLVSOD\BFRQQHFWLRQVPRGXOHBKDQGOHSRUWBKDQGOH
KDQGOHPRGXOHBKDQGOHSRUWBKDQGOH
^
KDQGOH
KLFRQQBQHWORFRQQBQHW
JHWDQGGLVSOD\ORZFRQQHFWLRQV
LRBSULQWI)RUPRGXOHVSRUWGLQWHUQDOFRQQHFWLRQVDUH?Q
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
DFFBIHWFKBLQGH[SRUWBKDQGOH
ORFRQQBQHW QXOO
ZKLOHORFRQQBQHW DFFBQH[WBORFRQQSRUWBKDQGOHORFRQQBQHW
LRBSULQWIV?QDFFBIHWFKBIXOOQDPHORFRQQBQHW
`
JHWDQGGLVSOD\KLJKFRQQHFWLRQV
LRBSULQWI)RUPRGXOHVSRUWGH[WHUQDOFRQQHFWLRQVDUH?Q
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
DFFBIHWFKBLQGH[SRUWBKDQGOH
KLFRQQBQHW QXOO
ZKLOHKLFRQQBQHW DFFBQH[WBKLFRQQSRUWBKDQGOHKLFRQQBQHW
LRBSULQWIV?QDFFBIHWFKBIXOOQDPHKLFRQQBQHW
)LJXUH³8VLQJDFFBQH[WBKLFRQQDQGDFFBQH[WBORFRQQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBLQSXW
DFFBQH[WBLQSXW
6\QRSVLV
*HWKDQGOHVWRLQSXWSDWKWHUPLQDOVRIDPRGXOHSDWKRUVRXUFHWHUPLQDOVRIDGDWDSDWK
6\QWD[
DFFBQH[WBLQSXWUHIHUHQFHBKDQGOHWHUPLQDOBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOHSDWKWHUPLQDORUDGDWDSDWKWHUPLQDO
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
UHIHUHQFHBKDQGOH
+DQGOHWRDPRGXOHSDWKRUGDWDSDWK
KDQGOH
WHUPLQDOBKDQGOH
+DQGOHRIWKHSUHYLRXVWHUPLQDOIRXQGLQLWLDOO\QXOO
8VHDFFBKDQGOHBFRQQWRJHWWKHQHWDWWDFKHGWRWKHSDWKWHUPLQDO
8VHDFFBUHOHDVHBREMHFWWRIUHHPHPRU\DOORFDWHGE\DFFBQH[WBLQSXW
7KH$&&URXWLQHDFFBQH[WBLQSXWVKDOOUHWXUQKDQGOHVWRWKHLQSXWSDWKWHUPLQDOVRIDPRGXOHSDWKRUWKHVRXUFH
WHUPLQDOVRIDGDWDSDWK7KHURXWLQHDFFBKDQGOHBFRQQFDQEHSDVVHGWKHLQSXWSDWKWHUPLQDOKDQGOHWRGHULYHWKH
QHWFRQQHFWHGWRWKHWHUPLQDO
$PRGXOHSDWKLVWKHVSHFLI\EORFNSDWKIRUGHOD\VLQWKH9HULORJ+'/GHVFULSWLRQ$GDWDSDWKLVSDUWRIWKH9HULORJ
+'/GHVFULSWLRQIRUHGJHVHQVLWLYHPRGXOHSDWKVDVVKRZQLQWKHIROORZLQJGLDJUDP
GDWDSDWK
SRVHGJHFON !TG PRGXOHSDWKLQSXW
PRGXOHSDWK
GDWDSDWKVRXUFH
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBLQSXW,WDFFHSWVDKDQGOHWRDVFDODUQHWRUDQHWELWVHOHFWDQG
DPRGXOHSDWK7KHDSSOLFDWLRQUHWXUQVWUXHLIWKHQHWLVFRQQHFWHGWRWKHLQSXWRIWKHSDWK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
ERROLVBQHWBRQBSDWKBLQSXWQHWSDWK
KDQGOHQHWVFDODUQHWRUELWVHOHFWRIYHFWRUQHW
KDQGOHSDWK
^
KDQGOHSRUWBLQSRUWBFRQQELW
VFDQSDWKLQSXWWHUPLQDOV
SRUWBLQ QXOO
ZKLOHSRUWBLQ DFFBQH[WBLQSXWSDWKSRUWBLQ
^
UHWULHYHQHWFRQQHFWHGWRSDWKWHUPLQDO
SRUWBFRQQ DFFBKDQGOHBFRQQSRUWBLQ
`
`
ELW QXOO
LIDFFBREMHFWBRIBW\SHSRUWBFRQQDFF([SDQGHG9HFWRU
^
ELW QXOO
ZKLOHELW DFFBQH[WBELWSRUWBFRQQELW
LIDFFBFRPSDUHBKDQGOHVELWQHW
UHWXUQWUXH
`
HOVH
LIDFFBFRPSDUHBKDQGOHVELWQHW
UHWXUQWUXH
UHWXUQIDOVH
)LJXUH³8VLQJDFFBQH[WBLQSXW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBORDG
DFFBQH[WBORDG
6\QRSVLV
*HWKDQGOHVWRSULPLWLYHWHUPLQDOVGULYHQE\DQHW
6\QWD[
DFFBQH[WBORDGUHIHUHQFHBKDQGOHORDGBKDQGOH
7\SH
5HWXUQV
KDQGOH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRIDSULPLWLYHWHUPLQDO
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
ORDGBKDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
+DQGOHRIWKHSUHYLRXVORDGIRXQGLQLWLDOO\QXOO
8VHDFFBQH[WBFHOOBORDGWRJHWFHOOPRGXOHORDGV
7KH$&& URXWLQH DFFBQH[WBORDG VKDOO UHWXUQ KDQGOHV WR WKH SULPLWLYH ORDGV WKDW DUH EHLQJ GULYHQ E\ D QHW 7KH
KDQGOHIRUDORDGVKDOOEHDSULPLWLYHLQSXWWHUPLQDO
7KHURXWLQHVDFFBQH[WBORDGDQGDFFBQH[WBFHOOBORDGKDYHGLIIHUHQWIXQFWLRQDOLWLHV7KHURXWLQHDFFBQH[WBORDG
VKDOOUHWXUQHYHU\SULPLWLYHLQSXWWHUPLQDOGULYHQE\DQHWZKHWKHULWLVLQVLGHDFHOORUDPRGXOHLQVWDQFH7KHURXWLQH
DFFBQH[WBFHOOBORDGVKDOOUHWXUQRQO\RQHSULPLWLYHLQSXWWHUPLQDOSHUFHOOLQSXWRULQRXWSRUWGULYHQE\DQHW)LJXUH
LOOXVWUDWHV WKH GLIIHUHQFH XVLQJ D FLUFXLW LQ ZKLFK QHW GULYHV SULPLWLYH JDWHV LQ FHOO FHOO DQG
PRGXOH )RU WKLV FLUFXLW DFFBQH[WBORDG UHWXUQV IRXU SULPLWLYH LQSXW WHUPLQDOV DV ORDGV RQ QHW ZKLOH
DFFBQH[WBFHOOBORDGUHWXUQVWZRSULPLWLYHLQSXWWHUPLQDOVDVORDGVRQQHW
FHOO
QHW
FHOO
PRGXOH
DFFBQH[WBORDG
UHWXUQVIRXUSULPLWLYH
LQSXWWHUPLQDOV
DFFBQH[WBFHOOBORDG
UHWXUQVWZRSULPLWLYH
LQSXWWHUPLQDOV
)LJXUH³7KHGLIIHUHQFHEHWZHHQDFFBQH[WBORDGDQGDFFBQH[WBFHOOBORDG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBORDGWRÀQGDOOWHUPLQDOVGULYHQE\DQHW
LQFOXGHDFFBXVHUK
JHWBORDGV
^
KDQGOH
QHWBKDQGOHORDGBKDQGOHORDGBQHWBKDQGOH
LQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUQHW
QHWBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI1HWVLVGULYHQE\?QDFFBIHWFKBIXOOQDPHQHWBKDQGOH
`
JHWSULPLWLYHWKDWRZQVHDFKWHUPLQDOGULYHQE\WKHQHW
ORDGBKDQGOH QXOO
ZKLOHORDGBKDQGOH DFFBQH[WBORDGQHWBKDQGOHORDGBKDQGOH
^
ORDGBQHWBKDQGOH DFFBKDQGOHBFRQQORDGBKDQGOH
LRBSULQWIV
DFFBIHWFKBIXOOQDPHORDGBQHWBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBORDG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBORFRQQ
DFFBQH[WBORFRQQ
6\QRSVLV
*HWKDQGOHVWRKLHUDUFKLFDOO\ORZHUQHWFRQQHFWLRQVWRDSRUWRIDPRGXOH
6\QWD[
DFFBQH[WBORFRQQUHIHUHQFHBKDQGOHQHWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
QHWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDSRUW
+DQGOHRIWKHSUHYLRXVQHWIRXQGLQLWLDOO\QXOO
8VHDFFBKDQGOHBORFRQQWRJHWDKDQGOHWRKLHUDUFKLFDOO\ORZHUFRQQHFWLRQRIDVSHFLÀFSRUWELW
8VHDFFBQH[WBKLFRQQWRJHWKDQGOHVWRWKHKLHUDUFKLFDOO\KLJKHUFRQQHFWLRQ
7KH$&& URXWLQH DFFBQH[WBORFRQQ VKDOO UHWXUQ KDQGOHV WR WKH KLHUDUFKLFDOO\ ORZHU QHW FRQQHFWLRQV WR D PRGXOH
SRUW$KLHUDUFKLFDOO\ORZHUFRQQHFWLRQVKDOOEHWKHSDUWRIWKHQHWWKDWDSSHDUVLQVLGHWKHPRGXOHDVVKRZQLQWKH
IROORZLQJGLDJUDP
PRGXOH
ORFRQQ
ORZHUQHWFRQQHFWLRQ
PRGXOHSRUW
KLFRQQ
KLJKHUQHWFRQQHFWLRQ
:KHQWKHUHIHUHQFHKDQGOHSDVVHGWRDFFBQH[WBORFRQQLVDYHFWRUSRUWWKHURXWLQHVKDOOUHWXUQWKHORFRQQQHWVELW
E\ELWVWDUWLQJZLWKWKHPVEOHIWPRVWELWDQGHQGLQJZLWKWKHOVEULJKWPRVWELW
5HIHUWR)LJXUHIRUDQH[DPSOHRIXVLQJDFFBQH[WBORFRQQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBPRGSDWK
DFFBQH[WBPRGSDWK
6\QRSVLV
*HWKDQGOHVWRPRGXOHSDWKVRIDPRGXOH
6\QWD[
DFFBQH[WBPRGSDWKUHIHUHQFHBKDQGOHSDWKBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOHSDWK
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
SDWKBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVSDWKIRXQGLQLWLDOO\QXOO
7KH$&&URXWLQHDFFBQH[WBPRGSDWKVKDOOUHWXUQKDQGOHVWRWKHPRGXOHSDWKVLQDPRGXOH$PRGXOHSDWKLVWKH
VSHFLI\EORFNSDWKIRUGHOD\VLQWKH9HULORJ+'/GHVFULSWLRQ)RUH[DPSOH
PRGXOHSDWK
LQ!RXW SRVHGJHFON !TG PRGXOHSDWK
7KHH[DPSOHLQ)LJXUHXVHVDFFBQH[WBPRGSDWKWROLVWWKHQHWVFRQQHFWHGWRDOOPRGXOHSDWKVLQDPRGXOH
LQFOXGHDFFBXVHUK
JHWBSDWKBQHWVPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH SDWKBKDQGOHSDWKLQBKDQGOHSDWKRXWBKDQGOH
VFDQDOOSDWKVLQWKHPRGXOH
LRBSULQWI)RUPRGXOHV?QDFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
SDWKBKDQGOH QXOO
ZKLOHSDWKBKDQGOH DFFBQH[WBPRGSDWKPRGXOHBKDQGOHSDWKBKDQGOH
^
LRBSULQWISDWKVFRQQHFWLRQVDUH?QDFFBIHWFKBQDPHSDWKBKDQGOH
SDWKLQBKDQGOH DFFBKDQGOHBSDWKLQSDWKBKDQGOH
SDWKRXWBKDQGOH DFFBKDQGOHBSDWKRXWSDWKBKDQGOH
LRBSULQWIQHWVFRQQHFWHGWRLQSXW?QDFFBIHWFKBQDPHSDWKLQBKDQGOH
LRBSULQWIQHWVFRQQHFWHGWRRXWSXW?QDFFBIHWFKBQDPHSDWKRXWBKDQGOH
`
`
)LJXUH³8VLQJDFFBQH[WBPRGSDWK
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBQHW
DFFBQH[WBQHW
6\QRSVLV
*HWKDQGOHVWRQHWVLQDPRGXOH
6\QWD[
DFFBQH[WBQHWUHIHUHQFHBKDQGOHQHWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDQHW
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
QHWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVQHWIRXQGLQLWLDOO\QXOO
8VHDFFBREMHFWBRIBW\SHWRGHWHUPLQHLIDQHWLVVFDODURUYHFWRUH[SDQGHGRUXQH[SDQGHG
8VHDFFBQH[WBELWWRJHWKDQGOHVWRDOOELWVRIDQH[SDQGHGYHFWRUQHW
7KH$&&URXWLQHDFFBQH[WBQHWVKDOOUHWXUQKDQGOHVWRWKHQHWVZLWKLQDPRGXOHVFRSH7KHURXWLQHVKDOOUHWXUQD
KDQGOH WR D YHFWRU QHW DV D ZKROH LW GRHV QRW UHWXUQ D KDQGOH WR HDFK LQGLYLGXDO ELW RI D YHFWRU QHW 7KH URXWLQH
DFFBREMHFWBRIBW\SHFDQEHXVHGWRGHWHUPLQHLIDQHWLVYHFWRURUVFDODUDQGLILWLVH[SDQGHGRUXQH[SDQGHG7KH
URXWLQHDFFBQH[WBELWFDQEHXVHGWRUHWULHYHDKDQGOHIRUHDFKELWRIDQH[SDQGHGYHFWRUQHW
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBQHWWRGLVSOD\WKHQDPHVRIDOOQHWVLQDPRGXOH
LQFOXGH´DFFBXVHUKµ
GLVSOD\BQHWBQDPHV
^
KDQGOH
PRGBKDQGOHQHWBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI0RGXOHVFRQWDLQVWKHIROORZLQJQHWV?Q
DFFBIHWFKBIXOOQDPHPRGBKDQGOH
GLVSOD\QDPHVRIDOOQHWVLQWKHPRGXOH
QHWBKDQGOH QXOO
ZKLOHQHWBKDQGOH DFFBQH[WBQHWPRGBKDQGOHQHWBKDQGOH
LRBSULQWIV?QDFFBIHWFKBQDPHQHWBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBQHW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBRXWSXW
DFFBQH[WBRXWSXW
6\QRSVLV
*HWKDQGOHVWRRXWSXWSDWKWHUPLQDOVRIDPRGXOHSDWKRUGDWDSDWK
6\QWD[
DFFBQH[WBRXWSXWUHIHUHQFHBKDQGOHWHUPLQDOBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHWRDPRGXOHSDWKWHUPLQDORUGDWDSDWKWHUPLQDO
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
UHIHUHQFHBKDQGOH
+DQGOHWRDPRGXOHSDWKRUGDWDSDWK
KDQGOH
WHUPLQDOBKDQGOH
+DQGOHRIWKHSUHYLRXVWHUPLQDOIRXQGLQLWLDOO\QXOO
8VHDFFBKDQGOHBFRQQWRJHWWKHQHWDWWDFKHGWRWKHSDWKWHUPLQDO
8VHDFFBUHOHDVHBREMHFWWRIUHHPHPRU\DOORFDWHGE\DFFBQH[WBRXWSXW
7KH$&&URXWLQHDFFBQH[WBRXWSXWVKDOOUHWXUQKDQGOHVWRWKHRXWSXWSDWKWHUPLQDOVRIDPRGXOHSDWKRUDGDWDSDWK
7KH URXWLQH DFFBKDQGOHBFRQQ FDQ EH SDVVHG WKH RXWSXW SDWK WHUPLQDO KDQGOH WR GHULYH WKH QHW FRQQHFWHG WR WKH
WHUPLQDO
$PRGXOHSDWKLVWKHVSHFLI\EORFNSDWKIRUGHOD\VLQWKH9HULORJ+'/GHVFULSWLRQ$GDWDSDWKLVSDUWRIWKH9HULORJ
+'/GHVFULSWLRQIRUHGJHVHQVLWLYHPRGXOHSDWKVDVVKRZQLQWKHIROORZLQJLOOXVWUDWLRQ
GDWDSDWK
SRVHGJHFON !TG PRGXOHSDWK
RXWSXWSDWKWHUPLQDO
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBRXWSXW,WDFFHSWVDKDQGOHWRDVFDODUQHWRUDQHWELWVHOHFWDQG
DPRGXOHSDWK7KHDSSOLFDWLRQUHWXUQVWUXHLIWKHQHWLVFRQQHFWHGWRWKHRXWSXWRIWKHSDWK
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
ERROLVBQHWBRQBSDWKBRXWSXWQHWSDWK
KDQGOHQHWVFDODUQHWRUELWVHOHFWRIYHFWRUQHW
KDQGOHSDWK
^
KDQGOHSRUWBRXWSRUWBFRQQELW
VFDQSDWKRXWSXWWHUPLQDOV
SRUWBRXW QXOO
ZKLOHSRUWBRXW DFFBQH[WBRXWSXWSDWKSRUWBRXW
^
UHWULHYHQHWFRQQHFWHGWRSDWKWHUPLQDO
SRUWBFRQQ DFFBKDQGOHBFRQQSRUWBRXW
`
`
ELW QXOO
LIDFFBREMHFWBRIBW\SHSRUWBFRQQDFF([SDQGHG9HFWRU
^
ELW QXOO
ZKLOHELW DFFBQH[WBELWSRUWBFRQQELW
LIDFFBFRPSDUHBKDQGOHVELWQHW
UHWXUQWUXH
`
HOVH
LIDFFBFRPSDUHBKDQGOHVSRUWBFRQQQHW
UHWXUQWUXH
UHWXUQIDOVH
)LJXUH³8VLQJDFFBQH[WBRXWSXW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBSDUDPHWHU
DFFBQH[WBSDUDPHWHU
6\QRSVLV
*HWKDQGOHVWRSDUDPHWHUVZLWKLQDPRGXOH
6\QWD[
DFFBQH[WBSDUDPHWHUUHIHUHQFHBKDQGOHSDUDPHWHUBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDSDUDPHWHU
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
UHIHUHQFHBKDQGOH
+DQGOHRIDPRGXOH
KDQGOH
SDUDPHWHUBKDQGOH
+DQGOHRIWKHSUHYLRXVSDUDPHWHUIRXQGLQLWLDOO\QXOO
8VHDFFBIHWFKBSDUDPW\SHWRGHWHUPLQHWKHSDUDPHWHUGDWDW\SH
8VHDFFBIHWFKBSDUDPYDOWRUHWULHYHWKHSDUDPHWHUYDOXH
8VHDFFBQH[WBVSHFSDUDPWRJHWKDQGOHVWRVSHFLI\EORFNSDUDPHWHUV
7KH$&& URXWLQH DFFBQH[WBSDUDPHWHU VKDOO UHWXUQ KDQGOHV WR WKH SDUDPHWHUV LQ D PRGXOH 7KLV KDQGOH FDQ EH
SDVVHGWRDFFBIHWFKBSDUDPW\SHDQGDFFBIHWFKBSDUDPYDOWRUHWULHYHWKHGDWDW\SHDQGYDOXHRIWKHSDUDPHWHU
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBSDUDPHWHUWRVFDQIRUDOOSDUDPHWHUVLQDPRGXOH
LQFOXGHDFFBXVHUK
SULQWBSDUDPHWHUBYDOXHVPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH
SDUDPBKDQGOH
VFDQDOOSDUDPHWHUVLQWKHPRGXOHDQGGLVSOD\YDOXHVDFFRUGLQJWRW\SH
SDUDPBKDQGOH QXOO
ZKLOHSDUDPBKDQGOH DFFBQH[WBSDUDPHWHUPRGXOHBKDQGOHSDUDPBKDQGOH
^
LRBSULQWI3DUDPHWHUV DFFBIHWFKBIXOOQDPHSDUDPBKDQGOH
VZLWFKDFFBIHWFKBSDUDPW\SHSDUDPBKDQGOH
^
FDVHDFF5HDO3DUDP
LRBSULQWIOI?QDFFBIHWFKBSDUDPYDOSDUDPBKDQGOH
EUHDN
FDVHDFF,QWHJHU3DUDP
LRBSULQWIG?QLQWDFFBIHWFKBSDUDPYDOSDUDPBKDQGOH
EUHDN
FDVHDFF6WULQJ3DUDP
LRBSULQWIV?QFKDULQWDFFBIHWFKBSDUDPYDOSDUDPBKDQGOH
`
`
`
)LJXUH³8VLQJDFFBQH[WBSDUDPHWHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBSRUW
DFFBQH[WBSRUW
6\QRSVLV
*HWDKDQGOHWRLQSXWRXWSXWRULQRXWSRUWVRIDPRGXOHRUFRQQHFWHGWRDQHW
6\QWD[
DFFBQH[WBSRUWUHIHUHQFHSRUWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOHSRUW
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOHRUQHW
+DQGOHRIWKHSUHYLRXVSRUWIRXQGLQLWLDOO\QXOO
8VHDFFBIHWFKBGLUHFWLRQWRGHWHUPLQHWKHGLUHFWLRQRIDSRUW
8VHDFFBQH[WBSRUWRXWWRJHWKDQGOHVWRMXVWRXWSXWDQGLQRXWSRUWV
7KH$&&URXWLQHDFFBQH[WBSRUWVKDOOUHWXUQKDQGOHVWRWKHLQSXWRXWSXWDQGLQRXWSRUWVRIDPRGXOH7KHKDQGOHV
VKDOOEHUHWXUQHGLQWKHRUGHUVSHFLÀHGE\WKHSRUWOLVWLQWKHPRGXOHGHFODUDWLRQZRUNLQJIURPOHIWWRULJKW
7KHURXWLQHDFFBQH[WBSRUWVKDOOEHXVHGWZRZD\VDVVKRZQLQ7DEOH
7DEOH³+RZDFFBQH[WBSRUWZRUNV
,IWKHUHIHUHQFHKDQGOHLV
$KDQGOHWRDPRGXOH
$KDQGOHWRDQHW
DFFBQH[WBSRUWVKDOOUHWXUQ
$OOSRUWVRIWKHPRGXOH
$OOSRUWVFRQQHFWHGWRWKHQHWZLWKLQWKH
VFRSHRIWKHQHW
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBSRUWWRÀQGDQGGLVSOD\WKHLQSXWSRUWVRIDPRGXOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
GLVSOD\BLQSXWVPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH
SRUWBKDQGOH
LQW
GLUHFWLRQ
`
JHWKDQGOHIRUHDFKPRGXOHSRUW
SRUWBKDQGOH QXOO
ZKLOHSRUWBKDQGOH DFFBQH[WBSRUWPRGXOHBKDQGOHSRUWBKDQGOH
^
JLYHWKHLQGH[RIHDFKLQSXWSRUW
LIDFFBIHWFKBGLUHFWLRQSRUWBKDQGOH DFF,QSXW
LRBSULQWI3RUWGRIVLVDQLQSXW?Q
DFFBIHWFKBLQGH[SRUWBKDQGOH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
`
)LJXUH³8VLQJDFFBQH[WBSRUWZLWKDPRGXOHKDQGOH
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBQH[WBSRUW WR ÀQG WKH SRUW WKDW LV FRQQHFWHG WR D QHW DQG WKHQ WR
GLVSOD\LQIRUPDWLRQDERXWRWKHUQHWVFRQQHFWHGWRHDFKELWRIWKHVDPHSRUW
GLVSOD\BSRUWBFRQQHFWLRQV
^
KDQGOHQHW DFFBKDQGOHBWIDUJ
KDQGOHSRUWELW
`
SRUW ELW QXOO
ZKLOHSRUW DFFBQH[WBSRUWQHWSRUW
LIDFFBREMHFWBRIBW\SHSRUWDFF9HFWRU3RUW
ZKLOHELW DFFBQH[WBELWSRUWELW
LRBSULQWI3257%,7V/2&211V+,&211VQ
DFFBIHWFKBIXOOQDPHELW
DFFBIHWFKBIXOOQDPHDFFBKDQGOHBORFRQQELW
DFFBIHWFKBIXOOQDPHDFFBKDQGOHBKLFRQQELW
)LJXUH³8VLQJDFFBQH[WBSRUWZLWKDQHWKDQGOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBSRUWRXW
DFFBQH[WBSRUWRXW
6\QRSVLV
*HWKDQGOHVWRRXWSXWRULQRXWSRUWVRIDPRGXOH
6\QWD[
DFFBQH[WBSRUWRXWUHIHUHQFHBKDQGOHSRUWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOHSRUW
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
SRUWBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVSRUWIRXQGLQLWLDOO\QXOO
8VHDFFBIHWFKBGLUHFWLRQWRGHWHUPLQHWKHGLUHFWLRQRIDSRUW
8VHDFFBQH[WBSRUWWRJHWKDQGOHVWRLQSXWRXWSXWDQGLQRXWSRUWV
7KH$&&URXWLQHDFFBQH[WBSRUWRXWVKDOOUHWXUQKDQGOHVWRWKHRXWSXWDQGLQRXWSRUWVRIDPRGXOH7KHKDQGOHV
VKDOOEHUHWXUQHGLQWKHRUGHUVSHFLÀHGE\WKHSRUWOLVWLQWKHPRGXOHGHFODUDWLRQZRUNLQJIURPOHIWWRULJKW
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBSRUWRXWWRÀQGWKHRXWSXWDQGLQRXWSRUWVRIDPRGXOH
LQFOXGHDFFBXVHUK
GLVSOD\BRXWSXWVPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH
SRUWBKDQGOH
`
JHWKDQGOHIRUHDFKPRGXOHSRUW
SRUWBKDQGOH QXOO
ZKLOHSRUWBKDQGOH DFFBQH[WBSRUWRXWPRGXOHBKDQGOHSRUWBKDQGOH
^
JLYHWKHLQGH[RIHDFKRXWSXWRULQRXWSRUW
LRBSULQWI3RUWGRIVLVDQRXWSXWRULQRXW?Q
DFFBIHWFKBLQGH[SRUWBKDQGOH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
`
)LJXUH³8VLQJDFFBQH[WBSRUWRXW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBSULPLWLYH
DFFBQH[WBSULPLWLYH
6\QRSVLV
*HWKDQGOHVWRJDWHVVZLWFKHVRUXVHUGHÀQHGSULPLWLYHV8'3VZLWKLQDPRGXOH
6\QWD[
DFFBQH[WBSULPLWLYHUHIHUHQFHBKDQGOHSULPLWLYHBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDSULPLWLYH
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
UHIHUHQFHBKDQGOH
+DQGOHRIDPRGXOH
KDQGOH
SULPLWLYHBKDQGOH
+DQGOHRIWKHSUHYLRXVSULPLWLYHIRXQGLQLWLDOO\QXOO
7KH$&&URXWLQHDFFBQH[WBSULPLWLYHVKDOOUHWXUQKDQGOHVWRWKHEXLOWLQDQG8'3VZLWKLQDPRGXOH
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBSULPLWLYHWRGLVSOD\WKHGHÀQLWLRQQDPHVRIDOOSULPLWLYHVLQD
PRGXOH
LQFOXGHDFFBXVHUK
JHWBSULPLWLYHBGHILQLWLRQV
^
KDQGOH
PRGXOHBKDQGOHSULPBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGXOHBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI0RGXOHVFRQWDLQVWKHIROORZLQJW\SHVRISULPLWLYHV?Q
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
`
JHWDQGGLVSOD\GHILQLQJQDPHVRIDOOSULPLWLYHVLQWKHPRGXOH
SULPBKDQGOH QXOO
ZKLOHSULPBKDQGOH DFFBQH[WBSULPLWLYHPRGXOHBKDQGOHSULPBKDQGOH
LRBSULQWIV?Q
DFFBIHWFKBGHIQDPHSULPBKDQGOH
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBSULPLWLYH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBVFRSH
DFFBQH[WBVFRSH
6\QRSVLV
*HWKDQGOHVWRKLHUDUFK\VFRSHVZLWKLQDVFRSH
6\QWD[
DFFBQH[WBVFRSHUHIHUHQFHBKDQGOHVFRSHBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHWRDKLHUDUFK\VFRSH
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
VFRSHBKDQGOH
'HVFULSWLRQ
+DQGOHRIDVFRSH
+DQGOHRIWKHSUHYLRXVVFRSHIRXQGLQLWLDOO\QXOO
8VHDFFBIHWFKBW\SHDQGDFFBIHWFKBIXOOW\SHWRGHWHUPLQHWKHW\SHRIVFRSHREMHFWIRXQG
8VHDFFBQH[WBWRSPRGWRJHWKDQGOHVWRWRSPRGXOHVFRSHV
7KH$&& URXWLQH DFFBQH[WBVFRSH VKDOO UHWXUQ WKH KDQGOHV WR WKH LQWHUQDO VFRSHV ZLWKLQ D JLYHQ VFRSH ,QWHUQDO
VFRSHVVKDOOEHWKHLPPHGLDWHFKLOGUHQRIWKHUHIHUHQFHBKDQGOH7KHUHIHUHQFHVFRSHDQGWKHLQWHUQDOVFRSHVVKDOOEH
RQRIWKHIROORZLQJ
³
³
³
³
³
³
$WRSOHYHOPRGXOH
$PRGXOHLQVWDQFH
$QDPHGEHJLQHQGEORFN
$QDPHGIRUNMRLQEORFN
$9HULORJ+'/WDVN
$9HULORJ+'/IXQFWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBVSHFSDUDP
DFFBQH[WBVSHFSDUDP
6\QRSVLV
*HWKDQGOHVWRVSHFLI\EORFNSDUDPHWHUVZLWKLQDPRGXOH
6\QWD[
DFFBQH[WBVSHFSDUDPUHIHUHQFHBKDQGOHVSHFSDUDPBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
KDQGOH
+DQGOHRIDVSHFSDUDP
7\SH
1DPH
KDQGOH
PRGXOHBKDQGOH
KDQGOH
VSHFSDUDPBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVVSHFSDUDPIRXQGLQLWLDOO\QXOO
8VHDFFBIHWFKBSDUDPW\SHWRGHWHUPLQHWKHSDUDPHWHUGDWDW\SH
8VHDFFBIHWFKBSDUDPYDOWRUHWULHYHWKHSDUDPHWHUYDOXH
8VHDFFBQH[WBSDUDPHWHUWRJHWKDQGOHVWRPRGXOHSDUDPHWHUV
7KH$&& URXWLQH DFFBQH[WBVSHFSDUDP VKDOO UHWXUQ KDQGOHV WR WKH VSHFLI\ EORFN SDUDPHWHUV LQ D PRGXOH 7KLV
KDQGOHFDQEHSDVVHGWRDFFBIHWFKBSDUDPW\SHDQGDFFBIHWFKBSDUDPYDOWRUHWULHYHWKHGDWDW\SHDQGYDOXH
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBVSHFSDUDPWRVFDQIRUDOOVSHFSDUDPVLQDPRGXOH
LQFOXGHDFFBXVHUK
SULQWBVSHFSDUDPBYDOXHVPRGXOHBKDQGOH
KDQGOH
PRGXOHBKDQGOH
^
KDQGOH
VSDUDPBKDQGOH
VFDQDOOSDUDPHWHUVLQWKHPRGXOHDQGGLVSOD\YDOXHVDFFRUGLQJWRW\SH
VSDUDPBKDQGOH QXOO
ZKLOHVSDUDPBKDQGOH DFFBQH[WBVSHFSDUDPPRGXOHBKDQGOHVSDUDPBKDQGOH
^
LRBSULQWI6SHFSDUDPV DFFBIHWFKBIXOOQDPHVSDUDPBKDQGOH
VZLWFKDFFBIHWFKBSDUDPW\SHVSDUDPBKDQGOH
^
FDVHDFF5HDO3DUDP
LRBSULQWIOI?QDFFBIHWFKBSDUDPYDOVSDUDPBKDQGOH
EUHDN
FDVHDFF,QWHJHU3DUDP
LRBSULQWIG?QLQWDFFBIHWFKBSDUDPYDOVSDUDPBKDQGOH
EUHDN
FDVHDFF6WULQJ3DUDP
LRBSULQWIV?QFKDULQWDFFBIHWFKBSDUDPYDOVSDUDPBKDQGOH
`
`
`
)LJXUH³8VLQJDFFBQH[WBVSHFSDUDP
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBWFKN
DFFBQH[WBWFKN
6\QRSVLV
*HWKDQGOHVWRWLPLQJFKHFNVZLWKLQDPRGXOH
6\QWD[
DFFBQH[WBWFKNUHIHUHQFHBKDQGOHWLPLQJBFKHFNBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
KDQGOH
'HVFULSWLRQ
+DQGOHRIDWLPLQJFKHFN
7\SH
1DPH
KDQGOH
UHIHUHQFHBKDQGOH
KDQGOH
WLPLQJBFKHFNBKDQGOH
'HVFULSWLRQ
+DQGOHRIDPRGXOH
+DQGOHRIWKHSUHYLRXVWLPLQJFKHFNIRXQGLQLWLDOO\QXOO
8VHDFFBKDQGOHBWFKNWRJHWDWLPLQJFKHFNKDQGOHXVLQJWKHWLPLQJFKHFNGHVFULSWLRQ
8VHDFFBKDQGOHBWFKNDUJDQGDFFBKDQGOHBWFKNDUJWRJHWKDQGOHVRIWKHWLPLQJFKHFNDUJXPHQWV
8VHDFFBKDQGOHBQRWLÀHUWRJHWDKDQGOHWRWKHWLPLQJFKHFNQRWLÀHUUHJLVWHU
8VHDFFBIHWFKBGHOD\VDFFBDSSHQGBGHOD\VDQGDFFBUHSODFHBGHOD\VWRUHDGRUPRGLI\WLPLQJFKHFN
YDOXHV
7KH$&&URXWLQHDFFBQH[WBWFKNVKDOOUHWXUQKDQGOHVWRWKHWLPLQJFKHFNVZLWKLQDPRGXOH7KHKDQGOHVFDQEH
SDVVHGWRRWKHU$&&URXWLQHVWRJHWWKHQHWVRUQRWLÀHULQWKHWLPHFKHFNDQGWRUHDGRUPRGLI\WLPLQJFKHFNYDOXHV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBWFKNWRGLVSOD\LQIRUPDWLRQDERXWVHWXSWLPLQJFKHFNV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
VKRZBVHWXSBFKHFNBQHWV
^
KDQGOH
PRGBKDQGOHFHOOBKDQGOH
KDQGOH
WFKNBKDQGOHWFKNDUJBKDQGOHWFKNDUJBKDQGOH
LQW
WFKNBW\SHFRXQWHU
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUPRGXOH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
`
VFDQDOOFHOOVLQPRGXOHIRUWLPLQJFKHFNV
FHOOBKDQGOH QXOO
ZKLOHFHOOBKDQGOH DFFBQH[WBFHOOPRGBKDQGOHFHOOBKDQGOH
^
LRBSULQWI´FHOOLVV?QµDFFBIHWFKBQDPHFHOOBKDQGOH
FRXQWHU WFKNBKDQGOH QXOO
ZKLOHWFKNBKDQGOH DFFBQH[WBWFKNFHOOBKDQGOHWFKNBKDQGOH
^
JHWQHWVFRQQHFWHGWRWLPLQJFKHFNDUJXPHQWV
WFKNBW\SH DFFBIHWFKBIXOOW\SHWFKNBKDQGOH
LIWFKNBW\SH DFF6HWXS
^
FRXQWHU
LRBSULQWI´IRUVHWXSFKHFNG?QµFRXQWHU
WFKNDUJBKDQGOH DFFBKDQGOHBWFKNDUJWFKNBKDQGOHPRGBKDQGOH
WFKNDUJBKDQGOH DFFBKDQGOHBWFKNDUJWFKNBKDQGOHPRGBKDQGOH
LRBSULQWIVWQHWLVV?QQGQHWLVV?Q
DFFBIHWFKBQDPHDFFBKDQGOHBFRQQWFKNDUJBKDQGOH
DFFBIHWFKBQDPHDFFBKDQGOHBFRQQWFKNDUJBKDQGOH
`
`
`
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBWFKN
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBQH[WBWHUPLQDO
DFFBQH[WBWHUPLQDO
6\QRSVLV
*HWKDQGOHVWRWHUPLQDOVRIDJDWHVZLWFKRUXVHUGHÀQHGSULPLWLYH8'3
6\QWD[
DFFBQH[WBWHUPLQDOUHIHUHQFHBKDQGOHWHUPLQDOBKDQGOH
7\SH
5HWXUQV
KDQGOH
$UJXPHQWV
'HVFULSWLRQ
+DQGOHRIDSULPLWLYHWHUPLQDO
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
UHIHUHQFHBKDQGOH
+DQGOHRIDJDWHVZLWFKRU8'3
KDQGOH
WHUPLQDOBKDQGOH
+DQGOHRIWKHSUHYLRXVWHUPLQDOIRXQGLQLWLDOO\QXOO
7KH$&& URXWLQH DFFBQH[WBWHUPLQDO VKDOO UHWXUQ KDQGOHV WR WKH WHUPLQDOV RQ D SULPLWLYH 7KH KDQGOHV VKDOO EH
UHWXUQHGLQWKHRUGHURIWKHSULPLWLYHLQVWDQFHVWDWHPHQWVWDUWLQJDWWHUPLQDOWKHOHIWPRVWWHUPLQDO
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBWHUPLQDOWRJHWKHUZLWKDFFBKDQGOHBFRQQWRUHWULHYHDOOQHWV
FRQQHFWHGWRDSULPLWLYH
LQFOXGHDFFBXVHUK
GLVSOD\BWHUPLQDOV
^
KDQGOH SULPBKDQGOHWHUPBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUSULPLWLYH
SULPBKDQGOH DFFBKDQGOHBWIDUJ
`
LRBSULQWI&RQQHFWLRQVWRSULPLWLYHV?Q
DFFBIHWFKBIXOOQDPHSULPBKDQGOH
VFDQDOOWHUPLQDOVRIWKHSULPLWLYH
DQGGLVSOD\WKHLUQHWV
WHUPBKDQGOH QXOO
ZKLOHWHUPBKDQGOH DFFBQH[WBWHUPLQDOSULPBKDQGOHWHUPBKDQGOH
LRBSULQWIV?Q
DFFBIHWFKBQDPHDFFBKDQGOHBFRQQWHUPBKDQGOH
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBWHUPLQDO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBQH[WBWRSPRG
DFFBQH[WBWRSPRG
6\QRSVLV
*HWKDQGOHVWRWRSOHYHOPRGXOHV
6\QWD[
DFFBQH[WBWRSPRGPRGXOHBKDQGOH
7\SH
5HWXUQV
KDQGOH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRIDWRSOHYHOPRGXOH
7\SH
1DPH
KDQGOH
PRGXOHBKDQGOH
'HVFULSWLRQ
+DQGOHRIWKHSUHYLRXVWRSOHYHOPRGXOHIRXQGLQLWLDOO\
QXOO
8VHDFFBQH[WBFKLOGZLWKDQXOOUHIHUHQFHBKDQGOHWRFROOHFWRUFRXQWWRSOHYHOPRGXOHVZLWKDFFBFROOHFW
DQGDFFBFRXQW
7KH$&&URXWLQHDFFBQH[WBWRSPRGVKDOOUHWXUQKDQGOHVWRWKHWRSOHYHOPRGXOHVLQDGHVLJQ
7KH$&&URXWLQHDFFBQH[WBWRSPRGGRHVQRWZRUNZLWKDFFBFROOHFWRUDFFBFRXQWEXWDFFBQH[WBFKLOGZLWKD
QXOOUHIHUHQFHKDQGOHDUJXPHQWFDQEHXVHGLQSODFHRIDFFBQH[WBWRSPRG)RUH[DPSOH
DFFBFRXQWDFFBQH[WBFKLOGQXOOFRXQWVWRSOHYHOPRGXOHV
DFFBFROOHFWDFFBQH[WBFKLOGQXOOFRXQWFROOHFWWRSOHYHOPRGXOHV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBQH[WBWRSPRGWRGLVSOD\WKHQDPHVRIDOOWRSOHYHOPRGXOHV
LQFOXGHDFFBXVHUK
VKRZBWRSBPRGXOHV
^
KDQGOH
PRGXOHBKDQGOH
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VFDQDOOWRSOHYHOPRGXOHV
LRBSULQWI7KHWRSOHYHOPRGXOHVDUH?Q
PRGXOHBKDQGOH QXOO
ZKLOHPRGXOHBKDQGOH DFFBQH[WBWRSPRGPRGXOHBKDQGOH
GLVSOD\WKHLQVWDQFHQDPHRIHDFKPRGXOH
LRBSULQWIV?QDFFBIHWFKBQDPHPRGXOHBKDQGOH
`
DFFBFORVH
)LJXUH³8VLQJDFFBQH[WBWRSPRG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBREMHFWBLQBW\SHOLVW
DFFBREMHFWBLQBW\SHOLVW
6\QRSVLV
'HWHUPLQHZKHWKHUDQREMHFWÀWVDW\SHRUIXOOW\SHRUVSHFLDOSURSHUW\DVVSHFLÀHGLQDQLQSXWDUUD\
6\QWD[
DFFBREMHFWBLQBW\SHOLVWREMHFWBKDQGOHREMHFWBW\SHBDUUD\
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
ERRO
'HVFULSWLRQ
WUXHLIWKHW\SHIXOOW\SHRUSURSHUW\RIDQREMHFWPDWFKHVRQHVSHFLÀHGLQWKHDUUD\
IDOVHLIWKHUHLVQRPDWFK
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
VWDWLFLQWHJHU
DUUD\
REMHFWBW\SHBDUUD\
'HVFULSWLRQ
+DQGOHRIDQREMHFW
6WDWLFLQWHJHUDUUD\FRQWDLQLQJRQHRUPRUHSUHGHÀQHGLQWH
JHUFRQVWDQWVWKDWUHSUHVHQWWKHW\SHVDQGSURSHUWLHVRI
REMHFWVGHVLUHGWKHODVWHOHPHQWVKDOOEH
8VHDFFBREMHFWBRIBW\SHWRFKHFNIRUDPDWFKWRDVLQJOHSUHGHÀQHGFRQVWDQW
7KH$&&URXWLQHDFFBREMHFWBLQBW\SHOLVWVKDOOGHWHUPLQHZKHWKHUDQREMHFWÀWVRQHRIDOLVWRIW\SHVIXOOW\SHVRU
VSHFLDO SURSHUWLHV 7KH SURSHUWLHV IRU ZKLFK DFFBREMHFWBLQBW\SHOLVW LV WR FKHFN VKDOO EH OLVWHG DV DQ DUUD\ RI
FRQVWDQWV LQ D VWDWLF LQWHJHU DUUD\ 7KH DUUD\ FDQ FRQWDLQ DQ\ QXPEHU DQG FRPELQDWLRQ RI WKH SUHGHÀQHG LQWHJHU
FRQVWDQWVDQGLWVKDOOEHWHUPLQDWHGE\D
7KH IROORZLQJ &ODQJXDJH VWDWHPHQW VKRZV DQ H[DPSOH RI KRZ WR GHFODUH DQ DUUD\ RI REMHFW W\SHV FDOOHG
ZLUHGBQHWV
VWDWLFLQWZLUHGBQHWV>@ ^DFF:DQGDFF:RUDFF7ULDQGDFF7ULRU`
:KHQ WKLV DUUD\ LV SDVVHG WR DFFBREMHFWBLQBW\SHOLVW WKH $&& URXWLQH VKDOO UHWXUQ WUXH LI LWV REMHFWBKDQGOH
DUJXPHQWLVDZLUHGQHW
$OO W\SH DQG IXOOW\SH FRQVWDQWV VKDOO EH VXSSRUWHG E\ DFFBREMHFWBLQBW\SHOLVW 7KHVH FRQVWDQWV DUH OLVWHG LQ
7DEOH
7KHVSHFLDOSURSHUW\FRQVWDQWVVXSSRUWHGE\DFFBREMHFWBLQBW\SHOLVWDUHOLVWHGLQ7DEOH
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBREMHFWBLQBW\SHOLVW WR GHWHUPLQH LI D QHW LV D ZLUHG QHW 7KH
DSSOLFDWLRQWKHQGLVSOD\VWKHQDPHRIHDFKZLUHGQHWIRXQG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGH´DFFBXVHUKµ
GLVSOD\BZLUHGBQHWV
^
VWDWLF
LQW
ZLUHGBQHWV>@ ^DFF:DQGDFF:RUDFF7ULDQGDFF7ULRU`
KDQGOH
QHWBKDQGOH
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWKDQGOHIRUQHW
QHWBKDQGOH DFFBKDQGOHBWIDUJ
`
LIDZLUHGORJLFQHWGLVSOD\LWVQDPH
LIDFFBREMHFWBLQBW\SHOLVWQHWBKDQGOHZLUHGBQHWV
LRBSULQWI1HWVLVDZLUHGQHW?QDFFBIHWFKBQDPHQHWBKDQGOH
HOVH
LRBSULQWI1HWVLVQRWDZLUHGQHW?QDFFBIHWFKBQDPHQHWBKDQGOH
)LJXUH³8VLQJDFFBREMHFWBLQBW\SHOLVW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBREMHFWBRIBW\SH
DFFBREMHFWBRIBW\SH
6\QRSVLV
'HWHUPLQHZKHWKHUDQREMHFWÀWVDVSHFLÀHGW\SHRUIXOOW\SHRUVSHFLDOSURSHUW\
6\QWD[
DFFBREMHFWBRIBW\SHREMHFWBKDQGOHREMHFWBW\SH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
ERRO
'HVFULSWLRQ
WUXHLIWKHW\SHIXOOW\SHRUSURSHUW\RIDQREMHFWPDWFKHVWKHREMHFWBW\SHDUJXPHQW
IDOVHLIWKHUHLVQRPDWFK
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
LQW
REMHFWBW\SH
'HVFULSWLRQ
+DQGOHRIDQREMHFW
$QLQWHJHUFRQVWDQWWKDWUHSUHVHQWVDW\SHIXOOW\SHRUVSH
FLDOSURSHUW\
8VHDFFBREMHFWBLQBW\SHOLVWWRFKHFNIRUDPDWFKWRDQ\RIVHYHUDOSUHGHÀQHGFRQVWDQWV
7KH$&&URXWLQHDFFBREMHFWBRIBW\SHVKDOOGHWHUPLQHZKHWKHUDQREMHFWÀWVDVSHFLÀHGW\SHIXOOW\SHRUVSHFLDO
SURSHUW\ 7KH W\SH IXOOW\SH RU SURSHUW\ LV DQ LQWHJHU FRQVWDQW GHÀQHG LQ DFFBXVHUK $OO W\SH DQG IXOOW\SH
FRQVWDQWVVKDOOEHVXSSRUWHGE\DFFBREMHFWBRIBW\SH7KHVHFRQVWDQWVDUHOLVWHGLQ7DEOH7KHVSHFLDOSURSHUW\
FRQVWDQWVVXSSRUWHGE\DFFBREMHFWBRIBW\SHDUHOLVWHGLQ7DEOH
7DEOH³6SHFLDOREMHFWSURSHUWLHV
3URSHUW\RIREMHFW
3UHGHÀQHGLQWHJHUFRQVWDQW
6FDODU
DFF6FDODU
9HFWRU
DFF9HFWRU
&ROODSVHGQHW
DFF&ROODSVHG1HW
([SDQGHGYHFWRU
DFF([SDQGHG9HFWRU
8QH[SDQGHGYHFWRU
DFF8QH[SDQGHG9HFWRU
+LHUDUFK\VFRSH
DFF6FRSH
0RGXOHSDWKZLWKLIQRQHFRQGLWLRQ
DFF0RG3DWK+DV,IQRQH
6LPXODWHGQHWVDQGFROODSVHGQHWVDUHGHÀQHGDVIROORZV:KHQD9HULORJ+'/VRXUFHGHVFULSWLRQFRQQHFWVPRGXOHV
WRJHWKHU D FKDLQ RI QHWV ZLWK GLIIHUHQW VFRSHV DQG QDPHV DUH FRQQHFWHG DV LV LOOXVWUDWHG LQ WKH IROORZLQJ VLPSOH
GLDJUDP
PRGXOHLQVWDQFHL
RXW
6HFWLRQ
PRGXOHLQVWDQFHL
Z
LQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
,Q WKLV VPDOO FLUFXLW QHWV RXW Z DQG LQ DUH DOO WLHG WRJHWKHU HIIHFWLYHO\ EHFRPLQJ WKH VDPH QHW 6RIWZDUH
SURGXFWVFDQFROODSVHQHWVWKDWDUHFRQQHFWHGWRJHWKHUZLWKLQWKHGDWDVWUXFWXUHRIWKHSURGXFW7KHUHVXOWDQWQHWDIWHU
FROODSVLQJLVUHIHUUHGWRDVDVLPXODWHGQHWWKHRWKHUQHWVDUHUHIHUUHGWRDVFROODSVHGQHWV7KH$&&URXWLQHVFDQ
REWDLQDKDQGOHWRDQ\QHWZKHWKHULWLVFROODSVHGRUQRW7KHURXWLQHDFFBREMHFWBRIBW\SHFDQEHXVHGWRGHWHUPLQH
LIDQHWKDVEHHQFROODSVHG7KHURXWLQHDFFBKDQGOHBVLPXODWHGBQHWFDQEHXVHGWRÀQGWKHUHVXOWDQWQHWIURPWKH
QHWFROODSVLQJSURFHVV
([SDQGHGDQGXQH[SDQGHGYHFWRUVGHWHUPLQHLI$&&URXWLQHVFDQDFFHVVDYHFWRUDVDZKROHRUDFFHVVWKHELWVZLWKLQ
D YHFWRU ,I D YHFWRU KDV WKH SURSHUW\ DFF([SDQGHG9HFWRU WKHQ DFFHVV WR WKH GLVFUHWH ELWV RI WKH YHFWRU VKDOO EH
SHUPLWWHG7KLVSURSHUW\KDVWREHWUXHLQRUGHUIRUFHUWDLQ$&&URXWLQHVVXFKDVDFFBQH[WBELWWRDFFHVVHDFKELW
RI D YHFWRU ,I D YHFWRU KDV WKH SURSHUW\ DFF8QH[SDQGHG9HFWRU WKHQ DFFHVV WR WKH YHFWRU DV D ZKROH VKDOO EH
SHUPLWWHG7KLVSURSHUW\KDVWREHWUXHLQRUGHUIRUFHUWDLQ$&&URXWLQHVWRDFFHVVWKHFRPSOHWHYHFWRU$YHFWRU
REMHFWFDQKDYHMXVWRQHRIWKHVHSURSHUWLHVWUXHRUERWKFDQEHWUXH
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBREMHFWBRIBW\SHWRGHWHUPLQHZKHWKHUQHWVDUHFROODSVHGQHWV7KH
DSSOLFDWLRQWKHQGLVSOD\VHDFKFROODSVHGQHWDORQJZLWKWKHVLPXODWHGQHW
LQFOXGHDFFBXVHUK
YRLG GLVSOD\BFROODSVHGBQHWV
^
KDQGOH
PRGBKDQGOH
KDQGOH
QHWBKDQGOH
KDQGOH
VLPXODWHGBQHWBKDQGOH
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
JHWVFRSHILUVWDUJXPHQWSDVVHGWRXVHUGHILQHGV\VWHPWDVN
DVVRFLDWHGZLWKWKLVURXWLQH
PRGBKDQGOH DFFBKDQGOHBWIDUJ
LRBSULQWI,QPRGXOHV?QDFFBIHWFKBIXOOQDPHPRGBKDQGOH
QHWBKDQGOH QXOO
`
GLVSOD\QDPHRIHDFKFROODSVHGQHWDQGLWVQHWRIRULJLQ
ZKLOHQHWBKDQGOH DFFBQH[WBQHWPRGBKDQGOHQHWBKDQGOH
^
LIDFFBREMHFWBRIBW\SHQHWBKDQGOHDFF&ROODSVHG1HW
^
VLPXODWHGBQHWBKDQGOH DFFBKDQGOHBVLPXODWHGBQHWQHWBKDQGOH
LRBSULQWIQHWVZDVFROODSVHGRQWRQHWV?Q
DFFBIHWFKBQDPHQHWBKDQGOH
DFFBIHWFKBQDPHVLPXODWHGBQHWBKDQGOH
`
`
)LJXUH³8VLQJDFFBREMHFWBRIBW\SH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBSURGXFWBW\SH
DFFBSURGXFWBW\SH
6\QRSVLV
*HWWKHVRIWZDUHSURGXFWW\SHWKDWLVFDOOLQJWKH3/,DSSOLFDWLRQ
6\QWD[
DFFBSURGXFWBW\SH
7\SH
5HWXUQV
LQW
7\SH
$UJXPHQWV
'HVFULSWLRQ
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHVRIWZDUHSURGXFWW\SH
1DPH
'HVFULSWLRQ
1RQH
7KH$&&URXWLQHDFFBSURGXFWBW\SHVKDOOUHWXUQDSUHGHÀQHGLQWHJHUFRQVWDQWWKDWLGHQWLÀHVWKHFODVVRIVRIWZDUH
SURGXFWWKDWLVFDOOLQJWKH3/,DSSOLFDWLRQ7KLVLQIRUPDWLRQFDQEHXVHIXOZKHQD3/,DSSOLFDWLRQQHHGVWRFXVWRPL]H
WKHURXWLQHWRVSHFLÀFW\SHVRIVRIWZDUHLPSOHPHQWDWLRQV)RUH[DPSOHDGHOD\FDOFXODWRUPLJKWXVHW\SLFDOGHOD\VIRU
ORJLFVLPXODWLRQDQGPLQW\SPD[GHOD\VIRUWLPLQJDQDO\VLV
7KHLQWHJHUFRQVWDQWYDOXHVUHWXUQHGE\DFFBSURGXFWBW\SHDUHOLVWHGLQ7DEOH
7DEOH³3URGXFWW\SHVUHWXUQHGE\DFFBSURGXFWBW\SH
,IWKHSURGXFWLV
DFFBSURGXFWBW\SHUHWXUQV
$ORJLFVLPXODWRU
DFF6LPXODWRU
$WLPLQJDQDO\]HU
DFF7LPLQJ$QDO\]HU
$IDXOWVLPXODWRU
DFF)DXOW6LPXODWRU
6RPHRWKHUSURGXFW
DFF2WKHU
127(³6RIWZDUHSURGXFWYHQGRUVFDQGHÀQHDGGLWLRQDOLQWHJHUFRQVWDQWVVSHFLÀFWR
WKHLUSURGXFWV
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBSURGXFWBW\SHWRLGHQWLI\DQGGLVSOD\WKHSURGXFWW\SHEHLQJXVHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
VKRZBDSSOLFDWLRQ
^
UHVHWHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VKRZDSSOLFDWLRQW\SHDQG$&&URXWLQHYHUVLRQ
VZLWFKDFFBSURGXFWBW\SH
^
FDVHDFF6LPXODWRU
LRBSULQWI5XQQLQJORJLFVLPXODWLRQZLWK3/,YHUVLRQV?QDFFBYHUVLRQ
EUHDN
FDVHDFF7LPLQJ$QDO\]HU
LRBSULQWI5XQQLQJWLPLQJDQDO\VLVZLWK3/,YHUVLRQV?QDFFBYHUVLRQ
EUHDN
FDVHDFF)DXOW6LPXODWRU
LRBSULQWI5XQQLQJIDXOWVLPXODWLRQZLWK3/,YHUVLRQV?QDFFBYHUVLRQ
EUHDN
GHIDXOW
LRBSULQWI5XQQLQJRWKHUSURGXFWZLWK3/,YHUVLRQV?QDFFBYHUVLRQ
`
DFFBFORVH
`
)LJXUH³8VLQJDFFBSURGXFWBW\SH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBSURGXFWBYHUVLRQ
DFFBSURGXFWBYHUVLRQ
6\QRSVLV
*HWWKHYHUVLRQRIWKHVRIWZDUHSURGXFWWKDWLVOLQNHGWRWKH$&&URXWLQHV
6\QWD[
DFFBSURGXFWBYHUVLRQ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
FKDU
3RLQWHUWRDFKDUDFWHUVWULQJ
7\SH
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBSURGXFWBW\SHWRJHWWKHW\SHRIVRIWZDUHSURGXFW
8VHDFFBYHUVLRQWRJHWWKHYHUVLRQRI3/,$&&URXWLQHV
7KH$&&URXWLQHDFFBSURGXFWBYHUVLRQVKDOOUHWXUQDSRLQWHUWRDFKDUDFWHUVWULQJWKDWLQGLFDWHVWKHYHUVLRQRIWKH
VRIWZDUHSURGXFWWKDWFDOOHGWKH3/,DSSOLFDWLRQ7KHUHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH$&&LQWHUQDOVWULQJ
EXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ$&&URXWLQHV
7KHFKDUDFWHUVWULQJVKDOOEHLQWKHIROORZLQJIRUPDW
SURGXFWBQDPH!9HUVLRQYHUVLRQBQXPEHU!
)RUH[DPSOH
´9HULORJ6LPXODWRU9HUVLRQ29,VLP
7KHVWULQJUHWXUQHGE\DFFBSURGXFWBYHUVLRQVKDOOEHGHÀQHGE\WKHVRIWZDUHWRROYHQGRU
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBSURGXFWBYHUVLRQWRLGHQWLI\WKHYHUVLRQRIWKHVRIWZDUHSURGXFWWKDW
LVOLQNHGWR$&&URXWLQHV
LQFOXGHDFFBXVHUK
VKRZBYHUVLRQV
^
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VKRZYHUVLRQRI$&&URXWLQHV
DQGYHUVLRQRI9HULORJWKDWLVOLQNHGWR$&&URXWLQHV
LRBSULQWI5XQQLQJVZLWKV?QDFFBYHUVLRQDFFBSURGXFWBYHUVLRQ
`
DFFBFORVH
)LJXUH³8VLQJDFFBSURGXFWBYHUVLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBUHOHDVHBREMHFW
DFFBUHOHDVHBREMHFW
6\QRSVLV
'HDOORFDWHPHPRU\DOORFDWHGE\FDOOVWRDFFBQH[WBLQSXWDQGDFFBQH[WBRXWSXW
6\QWD[
DFFBUHOHDVHBREMHFWREMHFWBKDQGOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
'HVFULSWLRQ
+DQGOHWRDQLQSXWRURXWSXWWHUPLQDOSDWK
8VHDFFBQH[WBLQSXWWRJHWKDQGOHVWRPRGXOHSDWKLQSXWVDQGGDWDSDWKLQSXWV
8VHDFFBQH[WBRXWSXWWRJHWKDQGOHVWRPRGXOHSDWKRXWSXWVDQGGDWDSDWKRXWSXWV
7KH$&&URXWLQHDFFBUHOHDVHBREMHFWVKDOOGHDOORFDWHPHPRU\WKDWZDVDOORFDWHGE\DFDOOWRDFFBQH[WBLQSXWRU
DFFBQH[WBRXWSXW7KHURXWLQHVKRXOGEHFDOOHGDIWHUXVLQJWKHVH$&&URXWLQHVXQGHUWKHIROORZLQJFLUFXPVWDQFHV
³ 1RWDOOLQSXWVRURXWSXWVZHUHVFDQQHG
³ 7KHLQSXWRURXWSXWSDWKKDGRQO\RQHWHUPLQDO
³ $QHUURUZDVUHWXUQHG
7KHH[DPSOHVKRZQLQ)LJXUHÀQGVWKHGDWDSDWKFRUUHVSRQGLQJWRDQLQSXWPRGXOHSDWKDQGLWGLVSOD\VWKH
VRXUFHDQGGHVWLQDWLRQSRUWQDPHVIRUWKHGDWDSDWK7KHH[DPSOHFDOOVDFFBQH[WBLQSXWDQGDFFBQH[WBRXWSXWWR
JHW WKH ÀUVW LQSXW DQG RXWSXW UHVSHFWLYHO\ IRU D JLYHQ SDWK 6LQFH WKHVH URXWLQHV DUH RQO\ FDOOHG RQFH
DFFBUHOHDVHBREMHFWLVFDOOHGWRIUHHWKHPHPRU\DOORFDWHGIRUWKHLQSXWDQGRXWSXWKDQGOHV
YRLGGLVSOD\BGDWDSDWKBWHUPVPRGSDWK
KDQGOHPRGSDWK
^
KDQGOHGDWDSDWK DFFBKDQGOHBGDWDSDWKPRGSDWK
KDQGOHSDWKLQ DFFBQH[WBLQSXWGDWDSDWKQXOO
KDQGOHSDWKRXW DFFBQH[WBRXWSXWGDWDSDWKQXOO
WKHUHLVRQO\RQHLQSXWDQGRXWSXWWRDGDWDSDWK
LRBSULQWI'$7$3$7+,1387V?QDFFBIHWFKBIXOOQDPHSDWKLQ
LRBSULQWI'$7$3$7+287387V?QDFFBIHWFKBIXOOQDPHSDWKRXW
DFFBUHOHDVHBREMHFWSDWKLQ
DFFBUHOHDVHBREMHFWSDWKRXW
`
)LJXUH³8VLQJDFFBUHOHDVHBREMHFW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBUHSODFHBGHOD\V
DFFBUHSODFHBGHOD\VIRUVLQJOHGHOD\YDOXHVDFF0LQ7\S0D['HOD\VVHWWRIDOVH
6\QRSVLV
5HSODFHH[LVWLQJGHOD\VIRUSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVPRGXOHLQSXWSRUWVDQGLQWHU
PRGXOHSDWKV
6\QWD[
3ULPLWLYHV
3RUWV
3RUWELWV
,QWHUPRGXOHSDWKV
DFFBUHSODFHBGHOD\VREMHFWBKDQGOHULVHBGHOD\IDOOBGHOD\]BGHOD\
0RGXOHSDWKV
DFFBUHSODFHBGHOD\VREMHFWBKDQGOH
GGGGGGGGGGGG
7LPLQJFKHFNV
DFFBUHSODFHBGHOD\VREMHFWBFKHFNBKDQGOHOLPLW
7\SH
5HWXUQV
ERRO
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
KDQGOH
REMHFWBKDQGOH
GRXEOH
ULVHBGHOD\
IDOOBGHOD\
5LVHDQGIDOOGHOD\IRUVWDWHSULPLWLYHVWDWHSULPLWLYH
PRGXOHLQSXWSRUWPRGXOHLQSXWSRUWELWRULQWHUPRGXOHSDWK
GRXEOH
]BGHOD\
,IDFF7R+L='HOD\LVVHWWR´IURPBXVHUµ
WXUQRIIWR=WUDQVLWLRQGHOD\IRUVWDWHSULPLWLYHVPRGXOH
LQSXWSRUWVPRGXOHLQSXWSRUWELWVRULQWHUPRGXOHSDWKV
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR´µ
GHOD\IRUDOOWUDQVLWLRQVIRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWR´µRU´µ
ULVHWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWR´µRU´µ
!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR´µRU´µ
IDOOWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWR´µRU´µ
!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
,IDFF3DWK'HOD\&RXQWLVVHWWR´µ
WXUQRIIWUDQVLWLRQGHOD\IRUPRGXOHSDWKV
,IDFF3DWK'HOD\&RXQWLVVHWWR´µRU´µ
!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
G
G
,IDFF3DWK'HOD\&RXQWLVVHWWR´µRU´µ
GLV=!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV=!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
&RQGLWLRQDO
GRXEOH
G
G
G
G
G
G
,IDFF3DWK'HOD\&RXQWLVVHWWR´µ
GLV!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV;!=WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GLV=!;WUDQVLWLRQGHOD\IRUPRGXOHSDWKV
GRXEOH
OLPLW
/LPLWRIWLPLQJFKHFN
$UJXPHQWV
&RQGLWLRQDO
6HFWLRQ
'HVFULSWLRQ
+DQGOHRIDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNPRGXOH
LQSXWSRUWELWRIDPRGXOHLQSXWSRUWRULQWHUPRGXOHSDWK
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBUHSODFHBGHOD\VIRUPLQW\SPD[GHOD\VDFF0LQ7\S0D['HOD\VVHWWRWUXH
6\QRSVLV
5HSODFHPLQW\SPD[GHOD\YDOXHVIRUSULPLWLYHVPRGXOHSDWKVWLPLQJFKHFNVPRGXOHLQSXWSRUWVRU
LQWHUPRGXOHSDWKVWKHGHOD\YDOXHVDUHFRQWDLQHGLQDQDUUD\
6\QWD[
DFFBDSSHQGBGHOD\VREMHFWBKDQGOHDUUD\BSWU
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
ERRO
LIVXFFHVVIXOLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHRIDSULPLWLYHPRGXOHSDWKWLPLQJFKHFNPRGXOH
LQSXWSRUWELWRIDPRGXOHLQSXWSRUWRULQWHUPRGXOHSDWK
GRXEOHDGGUHVV
DUUD\BSWU
3RLQWHUWRDUUD\RIPLQW\SPD[GHOD\YDOXHV
WKHVL]HRIWKHDUUD\GHSHQGVRQWKHW\SHRIREMHFWDQGWKH
VHWWLQJRIDFF3DWK'HOD\&RXQWVHH
7KH $&& URXWLQH DFFBUHSODFHBGHOD\V VKDOO ZRUN GLIIHUHQWO\ GHSHQGLQJ RQ KRZ WKH FRQÀJXUDWLRQ SDUDPHWHU
DFF0LQ7\S0D['HOD\VLVVHW:KHQWKLVSDUDPHWHULVVHWWRIDOVHDVLQJOHGHOD\SHUWUDQVLWLRQVKDOOEHDVVXPHG
DQGGHOD\VVKDOOEHSDVVHGDVLQGLYLGXDODUJXPHQWV)RUWKLVVLQJOHGHOD\PRGHWKHÀUVWV\QWD[WDEOHLQWKLVFODXVH
VKDOODSSO\
:KHQ DFF0LQ7\S0D['HOD\V LV VHW WR WUXH DFFBUHSODFHBGHOD\V VKDOO SDVV RQH RU PRUH VHWV RI
PLQLPXPW\SLFDOPD[LPXPGHOD\VFRQWDLQHGLQDQDUUD\UDWKHUWKDQVLQJOHGHOD\VSDVVHGDVLQGLYLGXDODUJXPHQWV
)RUWKLVPLQW\SPD[GHOD\PRGHWKHVHFRQGV\QWD[WDEOHLQWKLVFODXVHVKDOODSSO\
7KH QXPEHU RI GHOD\ YDOXHV UHSODFHG E\ DFFBUHSODFHBGHOD\V VKDOO EH GHWHUPLQHG E\ WKH W\SH RI REMHFW DQG WKH
VHWWLQJRIFRQÀJXUDWLRQSDUDPHWHUV5HIHUWRIRUDGHVFULSWLRQRIKRZWKHQXPEHURIGHOD\YDOXHVDUHGHWHUPLQHG
7KHURXWLQHDFFBUHSODFHBGHOD\VVKDOOZULWHGHOD\VLQWKHWLPHVFDOHRIWKHPRGXOHWKDWFRQWDLQVWKHREMHFWBKDQGOH
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBUHSODFHBGHOD\V WR UHSODFH WKH FXUUHQW GHOD\V RQ D SDWK ZLWK QHZ
GHOD\YDOXHVUHDGIURPDÀOHFDOOHGSDWKGHOD\GDW7KHIRUPDWRIWKHÀOHLVVKRZQLQWKHIROORZLQJGLDJUDP
SDWKVRXUFH
‡
‡
ULVHGHOD\
WRSPLQRXW
QDPHRIPRGXOH
‡
SDWKGHVWLQDWLRQ
‡
IDOOGHOD\
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
LQFOXGHVWGLRK!
LQFOXGHDFFBXVHUK
ZULWHBSDWKBGHOD\V
^
),/(
LQILOH
FKDU
IXOOBPRGXOHBQDPH>1$0(B6,=(@
FKDU
SDWKLQBQDPH>1$0(B6,=(@SDWKRXWBQDPH>1$0(B6,=(@
GRXEOH
ULVHIDOO
KDQGOH
PRGBKDQGOHSDWKBKDQGOH
LQLWLDOL]HWKHHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWGHYHORSPHQWYHUVLRQ
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VHWDFF3DWK'HOD\&RXQWSDUDPHWHUWRUHWXUQULVHDQGIDOOGHOD\VRQO\
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
UHDGGHOD\VIURPILOHUPHDQVUHDGRQO\
LQILOH IRSHQSDWKGHOD\GDWU
IVFDQILQILOH´VVVOIOIµ
IXOOBPRGXOHBQDPHSDWKLQBQDPHSDWKRXWBQDPHULVHIDOO
JHWKDQGOHIRUWKHPRGXOHDQGWKHSDWK
PRGBKDQGOH DFFBKDQGOHBREMHFWIXOOBPRGXOHBQDPH
SDWKBKDQGOH DFFBKDQGOHBPRGSDWKPRGBKDQGOHSDWKLQBQDPHSDWKRXWBQDPH
UHSODFHGHOD\VZLWKQHZYDOXHV
DFFBUHSODFHBGHOD\VSDWKBKDQGOHULVHIDOO
`
DFFBFORVH
)LJXUH³8VLQJDFFBUHSODFHBGHOD\VLQVLQJOHGHOD\PRGH
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBUHSODFHBGHOD\V WR VFDOH WKH PLQW\SPD[ GHOD\V RQ DOO SULPLWLYH
GHOD\V LQVLGH FHOOV ZLWKLQ D JLYHQ VFRSH 7KH DSSOLFDWLRQ IHWFKHV WKH H[LVWLQJ GHOD\V IRU DQ REMHFW PXOWLSOLHV WKH
GHOD\V E\ D VFDOH IDFWRU DQG UHSODFHV WKH GHOD\V ZLWK WKH QHZ VFDOHG YDOXHV7KLV H[DPSOH DVVXPHV WKDW WKH XVHU
DSSOLFDWLRQ LV DVVRFLDWHG WKURXJK WKH 3/, LQWHUIDFH PHFKDQLVP ZLWK D XVHUGHÀQHG V\VWHP WDVN FDOOHG
VFDOHSULPGHOD\V7KHVFRSHDQGVFDOHIDFWRUVDUHSDVVHGDVDUJXPHQWVDVIROORZV
VFDOHSULPGHOD\VP\FKLS
VFRSH
VFDOHIDFWRU
IRU PLQLPXPGHOD\
6HFWLRQ
VFDOHIDFWRU
IRU W\SLFDOGHOD\
VFDOHIDFWRU
IRU PD[LPXPGHOD\
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LQFOXGHDFFBXVHUK
LQFOXGHYHULXVHUK
YRLGVFDOHBSULPBGHOD\V
DUUD\KDVWRKROGWKUHHVHWV
^
RIPLQW\SPD[YDOXHVIRU
KDQGOHWRSFHOOSULP
ULVHIDOODQGWXUQRIIGHOD\V
LQWL
GRXEOHGD>@
GRXEOHPLQBVFDOHBIDFWRUW\SBVFDOHBIDFWRUPD[BVFDOHBIDFWRU
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
DFFBFRQILJXUHDFF0LQ7\S0D['HOD\VWUXH
WRS DFFBKDQGOHBWIDUJ
PLQBVFDOHBIDFWRU DFFBIHWFKBWIDUJ
W\SBVFDOHBIDFWRU DFFBIHWFKBWIDUJ
PD[BVFDOHBIDFWRU DFFBIHWFKBWIDUJ
DUJXPHQW6FRSH
DUJXPHQW6FDOHIDFWRUIRUPLQLPXPGHOD\
DUJXPHQW6FDOHIDFWRUIRUW\SLFDOGHOD\
DUJXPHQW6FDOHIDFWRUIRUPD[LPXPGHOD\
LRBSULQWI6FDOHPLQW\SPD[GHOD\VIRUSULPLWLYHVLQFHOOVEHORZV?Q
DFFBIHWFKBIXOOQDPHWRS
LRBSULQWI6FDOLQJIDFWRUVPLQW\SPD[III?Q
PLQBVFDOHBIDFWRUW\SBVFDOHBIDFWRUPD[BVFDOHBIDFWRU
FHOO QXOO
IHWFKPLQW\SPD[
GHOD\VDQGVWRUH
ZKLOHFHOO DFFBQH[WBFHOOWRSFHOO
LQDUUD\GDDVIROORZV
^
GD>@
W\SLFDO
SULP QXOO
GD>@
ULVH
ZKLOHSULP DFFBQH[WBSULPLWLYHFHOOSULP GD>@
GHOD\
^
GD>@
W\SLFDO
DFFBIHWFKBGHOD\VSULPGD
GD>@
IDOO
GD>@
GHOD\
IRUL LL GD>L@ GD>L@PLQBVFDOHBIDFWRU
GD>@
W\SLFDO
GD>@
WXUQRII
IRUL LL GD>@
GHOD\
GD>L@ GD>L@W\SBVFDOHBIDFWRU
IRUL LL VFDOH
GD>L@ GD>L@PD[BVFDOHBIDFWRU
GHOD\V
DFFBUHSODFHBGHOD\VSULPGD
`
UHSODFHPLQW\SPD[
`
GHOD\VZLWKVFDOHGYDOXHV
`
)LJXUH³8VLQJDFFBUHSODFHBGHOD\VLQPLQW\SPD[GHOD\VPRGH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBUHSODFHBSXOVHUH
DFFBUHSODFHBSXOVHUH
6\QRSVLV
5HSODFHH[LVWLQJSXOVHKDQGOLQJUHMHFWBYDOXHDQGHBYDOXHIRUDPRGXOHSDWK
6\QWD[
DFFBUHSODFHBSXOVHUHSDWKUHUHUHUHUHUH
UHUHUHUHUHUH
7\SH
5HWXUQV
ERRO
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SDWK
GRXEOH
UU
UHMHFWBOLPLWYDOXHVWKHQXPEHURIDUJXPHQWVLVGHWHUPLQHG
E\DFF3DWK'HOD\&RXQW
GRXEOH
HH
HBOLPLWYDOXHVWKHQXPEHURIDUJXPHQWVLVGHWHUPLQHGE\
DFF3DWK'HOD\&RXQW
+DQGOHRIPRGXOHSDWK
8VHDFFBIHWFKBSXOVHUHWRJHWFXUUHQWSXOVHKDQGOLQJYDOXHV
8VHDFFBDSSHQGBSXOVHUHWRDSSHQGH[LVWLQJSXOVHKDQGOLQJYDOXHV
8VHDFFBVHWBSXOVHUHWRVHWSXOVHKDQGOLQJYDOXHVDVDSHUFHQWDJHRIWKHSDWKGHOD\
7KH$&&URXWLQHDFFBUHSODFHBSXOVHUHVKDOOUHSODFHH[LVWLQJSXOVHKDQGOLQJUHMHFWBOLPLWDQGHBOLPLWYDOXHVIRUD
PRGXOHSDWK7KHUHMHFWBOLPLWDQGHBOLPLWYDOXHVDUHXVHGWRFRQWUROKRZSXOVHVDUHSURSDJDWHGWKURXJKPRGXOHSDWKV
$SXOVHLVGHÀQHGDVWZRWUDQVLWLRQVRQWKHVDPHSDWKWKDWRFFXULQDVKRUWHUSHULRGRIWLPHWKDQWKHSDWKGHOD\3XOVH
FRQWUROYDOXHVGHWHUPLQHZKHWKHUDSXOVHVKRXOGEHUHMHFWHGSURSDJDWHGWKURXJKWRWKHRXWSXWRUFRQVLGHUHGDQHUURU
7KHSXOVHFRQWUROYDOXHVFRQVLVWRIDUHMHFWBOLPLWDQGDQHBOLPLWSDLURIYDOXHVZKHUH
³ 7KH UHMHFWBOLPLW VKDOO VHW D WKUHVKROG IRU GHWHUPLQLQJ ZKHQ WR UHMHFW D SXOVH³DQ\ SXOVH OHVV WKDQ WKH
UHMHFWBOLPLWVKDOOQRWSURSDJDWHWRWKHRXWSXWRIWKHSDWK
³ 7KHHBOLPLWVKDOOVHWDWKUHVKROGIRUGHWHUPLQLQJZKHQDSXOVHLVFRQVLGHUHGWREHDQHUURU³DQ\SXOVHOHVV
WKDQWKHHBOLPLWDQGJUHDWHUWKDQRUHTXDOWRWKHUHMHFWBOLPLWVKDOOSURSDJDWHDORJLF[WRWKHSDWKRXWSXW
³ $SXOVHWKDWLVJUHDWHUWKDQRUHTXDOWRWKHHBOLPLWVKDOOSURSDJDWHWKURXJKWRWKHSDWKRXWSXW
7KHH[DPSOHLQ7DEOHLOOXVWUDWHVWKHUHODWLRQVKLSEHWZHHQWKHUHMHFWBOLPLWDQGWKHHBOLPLW
7DEOH³3DWKSXOVHFRQWUROH[DPSOH
:KHQ
UHMHFWBOLPLW HBOLPLW 7KHSXOVHRQDPRGXOHSDWKRXWSXWVKDOOEH
5HMHFWHGLI
$QHUURULI*DQG
3DVVHGLI*
7KHIROORZLQJUXOHVVKDOODSSO\ZKHQVSHFLI\LQJSXOVHKDQGOLQJYDOXHV
D
7KHYDOXHRIUHMHFWBOLPLWVKDOOEHOHVVWKDQRUHTXDOWRWKHYDOXHRIHBOLPLW
E
7KHUHMHFWBOLPLWDQGHBOLPLWVKDOOQRWEHJUHDWHUWKDQWKHSDWKGHOD\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH QXPEHU RI SXOVH FRQWURO YDOXHV WKDW DFFBUHSODFHBSXOVHUH VHWV VKDOO EH FRQWUROOHG XVLQJ WKH $&& URXWLQH
DFFBFRQÀJXUHWRVHWWKHGHOD\FRXQWFRQÀJXUDWLRQSDUDPHWHUDFF3DWK'HOD\&RXQWDVVKRZQLQ7DEOH
7DEOH³+RZWKHYDOXHRIDFF3DWK'HOD\&RXQWDIIHFWVDFFBDSSHQGBSXOVHUH
:KHQDFF3DWK'HOD\&RXQWLV
DFFBUHSODFHBSXOVHUHVKDOOZULWH
2QHSDLURIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUDOOWUDQVLWLRQVUDQGH
7ZRSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUULVHWUDQVLWLRQVUDQGH
RQHSDLUIRUIDOOWUDQVLWLRQVUDQGH
7KUHHSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV
RQHSDLUIRUULVHWUDQVLWLRQVUDQGH
RQHSDLUIRUIDOOWUDQVLWLRQVUDQGH
RQHSDLUIRUWXUQRIIWUDQVLWLRQVUDQGH
WKHGHIDXOW
6L[SDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV³DGLIIHUHQWSDLU
IRUHDFKSRVVLEOHWUDQVLWLRQDPRQJDQG=
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
7ZHOYHSDLUVRIUHMHFWBOLPLWDQGHBOLPLWYDOXHV³DGLIIHUHQW
SDLUIRUHDFKSRVVLEOHWUDQVLWLRQDPRQJ;DQG=
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!WUDQVLWLRQVUDQGH
RQHSDLUIRU!;WUDQVLWLRQVUDQGH
RQHSDLUIRU;!WUDQVLWLRQVUDQGH
RQHSDLUIRU!;WUDQVLWLRQVUDQGH
RQHSDLUIRU;!WUDQVLWLRQVUDQGH
RQHSDLUIRU;!=WUDQVLWLRQVUDQGH
RQHSDLUIRU=!;WUDQVLWLRQVUDQGH
7KHPLQLPXPQXPEHURISDLUVRIUHMHFWBOLPLWDQGHBOLPLWDUJXPHQWVWRSDVVWRDFFBUHSODFHBSXOVHUHVKDOOHTXDOWKH
YDOXH RI DFF3DWK'HOD\&RXQW $Q\ XQXVHG UHMHFWBOLPLW DQG HBOLPLW DUJXPHQW SDLUV VKDOO EH LJQRUHG E\
DFFBUHSODFHBSXOVHUHDQGFDQEHGURSSHGIURPWKHDUJXPHQWOLVW
,I DFF3DWK'HOD\&RXQW LV QRW VHW H[SOLFLWO\ LW VKDOO GHIDXOW WR DQG WKHUHIRUH VL[ SDLUV RI SXOVH UHMHFWBOLPLW DQG
HBOLPLW DUJXPHQWV KDYH WR EH SDVVHG ZKHQ DFFBUHSODFHBSXOVHUH LV FDOOHG 1RWH WKDW WKH YDOXH DVVLJQHG WR
DFF3DWK'HOD\&RXQW DOVR DIIHFWV DFFBDSSHQGBGHOD\V DFFBIHWFKBGHOD\V DFFBUHSODFHBGHOD\V
DFFBDSSHQGBSXOVHUHDQGDFFBIHWFKBSXOVHUH
3XOVHFRQWUROYDOXHVVKDOOEHUHSODFHGXVLQJWKHWLPHVFDOHRIWKHPRGXOHWKDWFRQWDLQVWKHSDWK
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBUHSODFHBSXOVHUH WR UHSODFH ULVH DQG IDOO SXOVH KDQGOLQJ YDOXHV RI
SDWKVOLVWHGLQDÀOHSDWKGDW
LQFOXGHVWGLRK!
LQFOXGHDFFBXVHUK
GHILQH1$0(B6,=(
UHSODFHBKDOISXOVHYDOV
^
),/(
LQILOH
FKDU
PRGBQDPH>1$0(B6,=(@
FKDU
SDWKLQBQDPH>1$0(B6,=(@SDWKRXWBQDPH>1$0(B6,=(@
KDQGOH PRGSDWK
GRXEOH ULVHBUHMHFWBOLPLWULVHBHBOLPLWIDOOBUHMHFWBOLPLWIDOOBHBOLPLW
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
VHWDFF3DWK'HOD\&RXQWWRUHWXUQWZRSDLUVRISXOVHKDQGOLQJYDOXHV
RQHHDFKIRUULVHDQGIDOOWUDQVLWLRQV
DFFBFRQILJXUHDFF3DWK'HOD\&RXQW
UHDGDOOPRGXOHSDWKVSHFLILFDWLRQVIURPILOHSDWKGDW
LQILOH IRSHQSDWKGDWU
ZKLOHIVFDQILQILOHVVVPRGBQDPHSDWKLQBQDPHSDWKRXWBQDPH (2)
^
PRG DFFBKDQGOHBREMHFWPRGBQDPH
SDWK DFFBKDQGOHBPRGSDWKPRGSDWKLQBQDPHSDWKRXWBQDPH
ULVHBUHMHFWBOLPLW LIDFFBUHSODFHBSXOVHUHSDWK ULVHBUHMHFWBOLPLWULVHBHBOLPLW
IDOOBUHMHFWBOLPLWIDOOBHBOLPLW
^
LRBSULQWIULVHUHMHFWOLPLW OIULVHHOLPLW OI?Q
ULVHBUHMHFWBOLPLWULVHBHBOLPLW
LRBSULQWIIDOOUHMHFWOLPLW OIIDOOHOLPLW OI?Q
IDOOBUHMHFWBOLPLWIDOOBHBOLPLW
`
`
DFFBFORVH
`
)LJXUH³8VLQJDFFBUHSODFHBSXOVHUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBUHVHWBEXIIHU
DFFBUHVHWBEXIIHU
6\QRSVLV
5HVHWWKHVWULQJEXIIHUWRWKHEHJLQQLQJ
6\QWD[
DFFBUHVHWBEXIIHU
7\SH
5HWXUQV
YRLG
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
1DPH
'HVFULSWLRQ
1RQH
$OO$&&URXWLQHVWKDWUHWXUQDSRLQWHUWRDFKDUDFWHUVWULQJ
7KH$&&URXWLQHDFFBUHVHWBEXIIHUVKDOOUHVHWWKHVWULQJEXIIHUWRLWVEHJLQQLQJ7KHVWULQJEXIIHUVKDOOEHXVHGDV
WHPSRUDU\VWRUDJHE\RWKHU$&&URXWLQHVWKDWUHWXUQDSRLQWHUWRDFKDUDFWHUVWULQJ5HIHUWRIRUPRUHLQIRUPDWLRQ
RQWKHFKDUDFWHUVWULQJEXIIHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBVHWBLQWHUDFWLYHBVFRSH
DFFBVHWBLQWHUDFWLYHBVFRSH
6\QRSVLV
6HWWKHLQWHUDFWLYHVFRSHRIDVRIWZDUHWRRO
6\QWD[
DFFBKDQGOHBLQWHUDFWLYHBVFRSH
7\SH
5HWXUQV
KDQGOH
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
+DQGOHRID9HULORJKLHUDUFK\VFRSH
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBKDQGOHBLQWHUDFWLYHBVFRSHWRJHWDKDQGOHIRUWKHFXUUHQWLQWHUDFWLYHVFRSH
7KH$&&URXWLQHDFFBVHWBLQWHUDFWLYHBVFRSHVKDOOVHWWKH9HULORJ+'/GHVLJQVFRSHZKHUHWKHLQWHUDFWLYHPRGHRI
WKHVRIWZDUHSURGXFWLVRSHUDWLQJ
$VFRSHVKDOOEH
³
³
³
³
³
³
$WRSOHYHOPRGXOH
$PRGXOHLQVWDQFH
$QDPHGEHJLQHQGEORFN
$QDPHGIRUNMRLQEORFN
$9HULORJ+'/WDVN
$9HULORJ+'/IXQFWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBVHWBSXOVHUH
DFFBVHWBSXOVHUH
6\QRSVLV
6HWWKHSXOVHKDQGOLQJYDOXHVIRUDPRGXOHSDWKDVDSHUFHQWDJHRIWKHSDWKGHOD\
6\QWD[
DFFBVHWBSXOVHUHSDWKBKDQGOHUHMHFWBSHUFHQWDJHHBSHUFHQWDJH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
YRLG
'HVFULSWLRQ
1RUHWXUQ
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
SDWKBKDQGOH
GRXEOH
UHMHFWBSHUFHQWDJH
GRXEOH
HBSHUFHQWDJH
+DQGOHRIDPRGXOHSDWK
0XOWLSOLHURIWKHGHOD\YDOXHWKDWIRUPVWKHXSSHUOLPLWIRU
UHMHFWLQJDSDWKRXWSXWSXOVH
0XOWLSOLHURIWKHGHOD\YDOXHWKDWIRUPVWKHXSSHU
OLPLWIRUVHWWLQJDSDWKRXWSXWSXOVHWR[
8VHDFFBIHWFKBSXOVHUHWRJHWFXUUHQWSXOVHKDQGOLQJYDOXHV
8VHDFFBDSSHQGBSXOVHUHWRDSSHQGH[LVWLQJSXOVHKDQGOLQJYDOXHV
8VHDFFBUHSODFHBSXOVHUHWRUHSODFHH[LVWLQJSXOVHKDQGOLQJYDOXHV
7KH$&& URXWLQH DFFBVHWBSXOVHUH VKDOO VHW WKH SXOVH KDQGOLQJ YDOXHV UHMHFWBSHUFHQWDJH DQG HBSHUFHQWDJH IRU D
PRGXOHSDWKVSHFLÀHGDVDSHUFHQWDJHPXOWLSOLHURIWKHSDWKGHOD\
$SXOVHLVGHÀQHGDVWZRWUDQVLWLRQVRQWKHVDPHSDWKWKDWRFFXULQDVKRUWHUSHULRGRIWLPHWKDQWKHSDWKGHOD\3XOVH
FRQWUROYDOXHVGHWHUPLQHZKHWKHUDSXOVHVKRXOGEHUHMHFWHGSURSDJDWHGWKURXJKWRWKHRXWSXWRUFRQVLGHUHGDQHUURU
7KHSXOVHFRQWUROYDOXHVFRQVLVWRIDUHMHFWBSHUFHQWDJHDQGDQHBSHUFHQWDJHSDLURIYDOXHVZKHUH
³ 7KHUHMHFWBSHUFHQWDJHVKDOOVHWDWKUHVKROGIRUGHWHUPLQLQJZKHQWRUHMHFWDSXOVH³DQ\SXOVHOHVVWKDQWKH
UHMHFWBSHUFHQWDJHVKDOOQRWSURSDJDWHWRWKHRXWSXWRIWKHSDWK
³ 7KHHBSHUFHQWDJHVKDOOVHWDWKUHVKROGIRUGHWHUPLQLQJZKHQDSXOVHLVFRQVLGHUHGWREHDQHUURU³DQ\SXOVH
OHVVWKDQWKHHBSHUFHQWDJHDQGJUHDWHUWKDQRUHTXDOWRWKHUHMHFWBSHUFHQWDJHVKDOOSURSDJDWHDORJLF[WRWKH
SDWKRXWSXW
³ $SXOVHWKDWLVJUHDWHUWKDQRUHTXDOWRWKHHBSHUFHQWDJHVKDOOSURSDJDWHWKURXJKWRWKHSDWKRXWSXW
7KHH[DPSOHLQ7DEOHLOOXVWUDWHVWKHUHODWLRQVKLSEHWZHHQWKHUHMHFWBSHUFHQWDJHDQGWKHHBSHUFHQWDJH
7DEOH³3DWKSXOVHFRQWUROH[DPSOH
*LYHQDSDWKZLWKDGHOD\RI
:KHQ
UHMHFWBSHUFHQWDJH HBSHUFHQWDJH $SXOVHRQDPRGXOHSDWKRXWSXWVKDOOEH
5HMHFWHGLIRISDWKGHOD\
$QHUURULI*DQGEHWZHHQDQGRISDWKGHOD\
3DVVHGLI*JUHDWHUWKDQRUHTXDOWRRISDWKGHOD\
7KHIROORZLQJUXOHVVKDOODSSO\ZKHQVSHFLI\LQJSXOVHKDQGOLQJYDOXHV
D
7KHUHMHFWBSHUFHQWDJHDQGHBSHUFHQWDJHVKDOOEHJUHDWHUWKDQRUHTXDOWRDQGOHVVWKDQRUHTXDOWR
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
E
,(((
6WG
7KHYDOXHRIUHMHFWBSHUFHQWDJHVKDOOEHOHVVWKDQRUHTXDOWRWKHYDOXHRIHBSHUFHQWDJH
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBVHWBSXOVHUHWRVHWSXOVHFRQWUROYDOXHVIRUHDFKSDWKLQDPRGXOHVXFK
WKDWDOOSXOVHVEHWZHHQDQGWKHSDWKGHOD\JHQHUDWHDQ;DWWKHSDWKRXWSXW
LQFOXGHDFFBXVHUK
VHWBSXOVHBFRQWUROBHPRGXOH
KDQGOH
PRGXOH
^
KDQGOH
SDWK
`
VHWSXOVHFRQWUROYDOXHVIRUDOOSDWKVLQWKHPRGXOH
SDWK QXOO
ZKLOHSDWK DFFBQH[WBPRGSDWKPRGXOHSDWK
DFFBVHWBSXOVHUHSDWK
)LJXUH³8VLQJDFFBVHWBSXOVHUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBVHWBVFRSH
DFFBVHWBVFRSH
6\QRSVLV
6HWDVFRSHIRUDFFBKDQGOHBREMHFWWRXVHZKHQVHDUFKLQJLQWKHGHVLJQKLHUDUFK\
6\QWD[
DFFBVHWBVFRSHPRGXOHBKDQGOHPRGXOHBQDPH
5HWXUQV
7\SH
'HVFULSWLRQ
FKDU
3RLQWHUWRDFKDUDFWHUVWULQJFRQWDLQLQJWKHIXOOKLHUDUFKLFDOQDPHRIWKHVFRSHVHWQXOOLI
DQHUURURFFXUUHG
7\SH
1DPH
$UJXPHQWV
KDQGOH
PRGXOHBKDQGOH
$KDQGOHWRDPRGXOH
2SWLRQDO
TXRWHGVWULQJRU
FKDU
PRGXOHBQDPH
4XRWHGVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJZLWKWKHQDPH
RIDPRGXOHLQVWDQFHRSWLRQDOXVHGZKHQDFF(QDEOH$UJV
LVVHWDQGPRGXOHBKDQGOHLVQXOO
5HODWHG
URXWLQHV
'HVFULSWLRQ
8VHDFFBKDQGOHBREMHFWWRJHWDKDQGOHWRDQ\QDPHGREMHFW
8VHDFFBFRQÀJXUHDFF(QDEOH$UJVDFFBVHWBVFRSHWRXVHWKHPRGXOHBQDPHDUJXPHQW
8VHDFFBVHWBLQWHUDFWLYHBVFRSHWRVHWWKHLQWHUDFWLYHVFRSH
7KH$&&URXWLQHDFFBVHWBVFRSHVKDOOVHWWKHVFRSHDQGVHDUFKUXOHVIRUWKHURXWLQHDFFBKDQGOHBREMHFW7KHZD\
WKDWDFFBVHWBVFRSHIXQFWLRQVVKDOOEHGHSHQGHQWRQWKHVHWWLQJRIFRQÀJXUDWLRQSDUDPHWHUVDVVKRZQLQ7DEOH
7DEOH³+RZDFFBVHWBVFRSHZRUNV
,I
DFFBVHWBVFRSHVKDOO
'HIDXOWPRGHRU
DFFBFRQÀJXUHDFF(QDEOH$UJVQRBDFFBVHWBVFRSH
LVFDOOHGDQG
PRGXOHBKDQGOHLVDYDOLGKDQGOH
6HWWKHVFRSHWRWKHOHYHORIPRGXOHBKDQGOHLQWKHGHVLJQ
KLHUDUFK\DQGLJQRUHWKHRSWLRQDOPRGXOHBQDPHDUJXPHQW
'HIDXOWPRGHRU
DFFBFRQÀJXUHDFF(QDEOH$UJVQRBDFFBVHWBVFRSH
LVFDOOHGDQG
PRGXOHBKDQGOHLVQXOO
6HWWKHVFRSHWRWKHWRSOHYHOPRGXOHWKDWDSSHDUVÀUVWLQ
WKHVRXUFHGHVFULSWLRQ
7KHURXWLQH
DFFBFRQÀJXUHDFF(QDEOH$UJVDFFBVHWBVFRSH
KDVEHHQFDOOHGDQG
PRGXOHBKDQGOHLVDQXOO
6HWVFRSHWRWKHOHYHORIPRGXOHBQDPHLQWKHGHVLJQ
KLHUDUFK\
7KHURXWLQH
DFFBFRQÀJXUHDFF(QDEOH$UJVDFFBVHWBVFRSH
KDVEHHQFDOOHGDQG
PRGXOHBKDQGOHLVDYDOLGKDQGOH
6HWVFRSHWRWKHOHYHORIPRGXOHBKDQGOHLQWKHGHVLJQKLHU
DUFK\DQGLJQRUHWKHRSWLRQDOPRGXOHBQDPHDUJXPHQW
7KHURXWLQH
DFFBFRQÀJXUHDFF(QDEOH$UJVDFFBVHWBVFRSH
KDVEHHQFDOOHGDQG
PRGXOHBKDQGOHDQGPRGXOHBQDPHDUHERWKQXOO
6HWVFRSHWRWKHWRSOHYHOPRGXOHWKDWDSSHDUVÀUVWLQWKH
VRXUFHGHVFULSWLRQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7RXVHWKHRSWLRQDOPRGXOHBQDPHDUJXPHQWWKHFRQÀJXUDWLRQSDUDPHWHUDFF(QDEOH$UJVÀUVWKDVWREHVHWE\FDOOLQJ
DFFBFRQÀJXUHDVIROORZV
DFFBFRQILJXUHDFF(QDEOH$UJV´DFFBVHWBVFRSHµ
,IDFF(QDEOH$UJVLVQRWVHWIRUDFFBVHWBVFRSHWKHURXWLQHVKDOOLJQRUHLWVRSWLRQDODUJXPHQW:KHQWKHRSWLRQDO
DUJXPHQWLVQRWUHTXLUHGIRUDFDOOWRDFFBVHWBVFRSHWKHDUJXPHQWFDQEHGURSSHG
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBVHWBVFRSHWRVHWDVFRSHIRUWKH$&&URXWLQHDFFBKDQGOHBREMHFWWR
GHWHUPLQHLIDQHWLVLQDPRGXOH
LQFOXGH´DFFBXVHUKµ
LVBQHWBLQBPRGXOHPRGXOHBKDQGOHQHWBQDPH
KDQGOH
PRGXOHBKDQGOH
FKDU
QHWBQDPH
^
KDQGOH
QHWBKDQGOH
KDQGOH
ORDGBKDQGOHORDGBQHWBKDQGOH
VHWVFRSHWRPRGXOH
DFFBVHWBVFRSHPRGXOHBKDQGOH
JHWKDQGOHIRUQHW
QHWBKDQGOH DFFBKDQGOHBREMHFWQHWBQDPH
`
LIQHWBKDQGOH
LRBSULQWI1HWVIRXQGLQPRGXOHV?Q
QHWBQDPH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
HOVH
LRBSULQWI1HWVQRWIRXQGLQPRGXOHV?Q
QHWBQDPH
DFFBIHWFKBIXOOQDPHPRGXOHBKDQGOH
)LJXUH³8VLQJDFFBVHWBVFRSH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBVHWBYDOXH
DFFBVHWBYDOXH
6\QRSVLV
6HWDQGSURSDJDWHDYDOXHRQDUHJLVWHUYDULDEOHRUDVHTXHQWLDO8'3SURFHGXUDOO\DVVLJQDUHJLVWHURUYDUL
DEOHIRUFHDUHJLVWHUYDULDEOHRUQHW
6\QWD[
DFFBVHWBYDOXHREMHFWBKDQGOHYDOXHBSGHOD\BS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
=HURLIQRHUURUVQRQ]HURLIDQHUURURFFXUUHG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
SBVHWYDOBYDOXH
YDOXHBS
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJYDOXHWREHVHW
SBVHWYDOBGHOD\
GHOD\BS
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJGHOD\EHIRUHYDOXHLVVHW
+DQGOHWRDUHJLVWHURUVHTXHQWLDO8'3
8VHDFFBIHWFKBYDOXHWRUHWULHYHDORJLFYDOXH
8VHDFFBIHWFKBVL]HWRJHWWKHQXPEHURIELWVLQDYHFWRU
7KH$&&URXWLQHDFFBVHWBYDOXHVKDOOVHWDQGSURSDJDWHDYDOXHRQWRDUHJLVWHUYDULDEOHRUDVHTXHQWLDO8'37KH
URXWLQHVKDOODOVRSHUIRUPSURFHGXUDODVVLJQGHDVVLJQRUDSURFHGXUDOIRUFHUHOHDVHIXQFWLRQV
7KHORJLFYDOXHDQGSURSDJDWLRQGHOD\LQIRUPDWLRQVKDOOEHSODFHGLQVHSDUDWHVWUXFWXUHV7RXVHDFFBVHWBYDOXHWR
SURSDJDWHDYDOXHIROORZWKHVHEDVLFVWHSV
D
$OORFDWH PHPRU\ IRU WKH VWUXFWXUHV VBVHWYDOBYDOXH VBVHWYDOBGHOD\ DQG LI XVLQJ YHFWRUV
VBDFFBYHFYDO
E
6HWWKHDSSURSULDWHÀHOGVLQHDFKVWUXFWXUHWRWKHGHVLUHGYDOXHV
F
&DOODFFBVHWBYDOXHZLWKDQREMHFWKDQGOHDQGSRLQWHUVWRWKHVBVHWYDOBYDOXHDQGVBVHWYDOBGHOD\
VWUXFWXUHV
7KHVWUXFWXUHVBVHWYDOBYDOXHVKDOOFRQWDLQWKHYDOXHWREHZULWWHQ$YDOXHFDQEHHQWHUHGLQWRWKLVVWUXFWXUHDVD
VWULQJVFDODULQWHJHUUHDORUDVDQDYDOEYDOSDLU7KHVBVHWYDOBYDOXHVWUXFWXUHLVGHÀQHGLQDFFBXVHUKDQG
OLVWHGLQ)LJXUHQRWHWKDWWKLVVWUXFWXUHLVDOVRXVHGZLWKDFFBIHWFKBYDOXHURXWLQH
7KHIRUPDWÀHOGLQWKHVBVHWYDOBYDOXHVWUXFWXUHVKDOOLQGLFDWHWKHYDOXHW\SH7KHIRUPDWVKDOOEHDSUHGHÀQHG
LQWHJHUFRQVWDQWOLVWHGLQ7DEOH
7KH YDOXH XQLRQ LQ WKH VBVHWYDOBYDOXH VWUXFWXUH VKDOO EH WKH YDOXH WR EH ZULWWHQ7KH YDOXH LV SODFHG LQ WKH
DSSURSULDWHÀHOGZLWKLQWKHXQLRQIRUWKHIRUPDWVHOHFWHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
W\SHGHIVWUXFWWBVHWYDOBYDOXH
^
LQWIRUPDW
XQLRQ
^
FKDUVWU
LQWVFDODU
LQWLQWHJHU
GRXEOHUHDO
SBDFFBYHFYDOYHFWRU
`YDOXH
`VBVHWYDOBYDOXHSBVHWYDOBYDOXHVBDFFBYDOXHSBDFFBYDOXH
)LJXUH³7KHVBVHWYDOBYDOXHVWUXFWXUHXVHGE\DFFBVHWBYDOXH
7DEOH³3UHGHÀQHGFRQVWDQWVIRUWKHIRUPDWÀHOGRIVBVHWYDOBYDOXH
9DOXHIRUPDW
'HÀQLWLRQ
DFF6FDODU9DO
2QHRIDFFDFFDFF=DFF;
DFF9HFWRU9DO
DYDODQGEYDOELWJURXSVZLWKHDFKJURXSEHLQJDQLQWHJHUTXDQWLW\
DFF,QW9DO
DFF5HDO9DO
$QLQWHJHUTXDQWLW\
$UHDOYDOXHGTXDQWLW\
DFF6WULQJ9DO
)RULQWHJHUVDQGDSSURSULDWHO\VL]HGUHJLVWHUVDQ\$6&,,VWULQJ
IRUUHDOYDOXHGREMHFWVDQ\VWULQJWKDWUHSUHVHQWVDUHDOQXPEHU
DFF%LQ6WU9DO
$EDVHELWUHSUHVHQWDWLRQDVDVWULQJ
DFF2FW6WU9DO
$EDVHELWUHSUHVHQWDWLRQDVDVWULQJ
DFF'HF6WU9DO
$EDVHELWUHSUHVHQWDWLRQDVDVWULQJ
DFF+H[6WU9DO
$EDVHELWUHSUHVHQWDWLRQDVDVWULQJ
:KHQWKHIRUPDWÀHOGRIWKHVBDFFBYHFYDOVWUXFWXUHLVVHWWRDFF9HFWRU9DOWKHYDOXHXQLRQÀHOGXVHGVKDOOEH
YHFWRU7KHYHFWRUÀHOGLVVHWWRDSRLQWHURUDQDUUD\RIVBDFFBYHFYDOVWUXFWXUHVWKDWFRQWDLQDYDOEYDOSDLUVIRU
HDFKELWRIWKHYHFWRU7KHVBDFFBYHFYDOVWUXFWXUHLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBDFFBYHFYDO
^
LQWDYDO
LQWEYDO
`VBDFFBYHFYDOSBDFFBYHFYDO
)LJXUH³VBDFFBYHFYDOVWUXFWXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHDUUD\RIVBDFFBYHFYDOVWUXFWXUHVVKDOOFRQWDLQDUHFRUGIRUHYHU\ELWVRIWKHYHFWRUSOXVDUHFRUGIRUDQ\
UHPDLQLQJELWV0HPRU\KDVWREHDOORFDWHGE\WKHXVHUIRUDUUD\RIVBDFFBYHFYDOVWUXFWXUHV,IDYHFWRUKDV1
ELWVWKHVL]HRIWKHDUUD\VKDOOEH1VBDFFBYHFYDOUHFRUGV7KHURXWLQHDFFBIHWFKBVL]HFDQEHXVHG
WRGHWHUPLQHWKHYDOXHRI1
7KHOVERIWKHYHFWRUVKDOOEHUHSUHVHQWHGE\WKHOVERIWKHÀUVWUHFRUGRIVBDFFBYHFYDODUUD\7KHUGELWRIWKH
YHFWRUVKDOOEHUHSUHVHQWHGE\WKHOVERIWKHVHFRQGUHFRUGRIWKHDUUD\DQGVRRQ(DFKELWRIWKHYHFWRUVKDOOEH
HQFRGHGDVDQDYDOEYDOSDLU7KHHQFRGLQJIRUHDFKELWLVVKRZQLQ7DEOH
7DEOH³(QFRGLQJRIELWVLQWKHVBDFFBYHFYDOVWUXFWXUH
DYDO
EYDO
9DOXH
=
;
7KHVWUXFWXUHVBVHWYDOBGHOD\VKDOOFRQWUROKRZYDOXHVDUHWREHSURSDJDWHGLQWRWKH9HULORJ+'/GDWDVWUXFWXUH
7KHVWUXFWXUHLVGHÀQHGLQDFFBXVHUKDQGLVOLVWHGLQ)LJXUH
7KHWLPHÀHOGLQWKHVBVHWYDOBGHOD\VWUXFWXUHVKDOOLQGLFDWHWKHGHOD\WKDWVKDOOWDNHSODFHEHIRUHDUHJLVWHUYDOXH
DVVLJQPHQW7KHWLPHÀHOGVKDOOEHRIW\SHVBDFFBWLPHVWUXFWXUHDVVKRZQLQ)LJXUH
7KHPRGHOÀHOGLQWKHVBVHWYDOBGHOD\VWUXFWXUHVKDOOGHWHUPLQHKRZWKHGHOD\VKDOOEHDSSOLHGDQGKRZRWKHU
VLPXODWLRQHYHQWVVFKHGXOHGIRUWKHVDPHREMHFWVKDOOEHDIIHFWHG7KHGHOD\PRGHOVKDOOEHVSHFLÀHGXVLQJSUHGHÀQHG
LQWHJHUFRQVWDQWVOLVWHGLQ7DEOH1RWHWKDWWKHFRQVWDQWVOLVWHGLQ7DEOHFDQDOVREHXVHG
W\SHGHIVWUXFWWBVHWYDOBGHOD\
^
VBDFFBWLPHWLPH
LQWPRGHO
`VBVHWYDOBGHOD\SBVHWYDOBGHOD\
)LJXUH³7KHVBVHWYDOBGHOD\VWUXFWXUHIRUDFFBVHWBYDOXH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³3UHGHÀQHGGHOD\FRQVWDQWVIRUWKHPRGHOÀHOGRIVBVHWYDOBGHOD\
,QWHJHUFRQVWDQW
DFF1R'HOD\
'HOD\PRGHO
'HVFULSWLRQ
1RGHOD\
6HWVDUHJLVWHURUVHTXHQWLDO8'3WRWKHLQGL
FDWHGYDOXHZLWKQRGHOD\RWKHUHYHQWVVFKHG
XOHGIRUWKHREMHFWDUHQRWDIIHFWHG
,QHUWLDOGHOD\
6HWVDUHJLVWHUWRWKHLQGLFDWHGYDOXHDIWHUWKH
VSHFLÀHGGHOD\DOOVFKHGXOHGHYHQWVRQWKH
REMHFWDUHUHPRYHGEHIRUHWKLVHYHQWLVVFKHG
XOHG
0RGLÀHGWUDQVSRUWGHOD\
6HWVDUHJLVWHUWRWKHLQGLFDWHGYDOXHDIWHUWKH
VSHFLÀHGGHOD\DOOVFKHGXOHGHYHQWVRQWKH
REMHFWIRUWLPHVODWHUWKDQWKLVHYHQWDUH
UHPRYHG
3XUHWUDQVSRUWGHOD\
6HWVDUHJLVWHUWRWKHLQGLFDWHGYDOXHDIWHUWKH
VSHFLÀHGGHOD\QRVFKHGXOHGHYHQWVRQWKH
REMHFWDUHUHPRYHG
DFF,QHUWLDO'HOD\
DFF7UDQVSRUW'HOD\
DFF3XUH7UDQVSRUW'HOD\
:KHQVHWWLQJWKHYDOXHRIDVHTXHQWLDO8'3WKHPRGHOÀHOGVKDOOEHDFF1R'HOD\DQGWKHQHZYDOXHVKDOOEHDVVLJQHG
ZLWKQRGHOD\HYHQLIWKH8'3LQVWDQFHKDVDGHOD\
7KHVBDFFBWLPHVWUXFWXUHVKDOOKROGWKHGHOD\YDOXHWKDWVKDOOEHXVHGE\DFFBVHWBYDOXH7KHVBDFFBWLPH
VWUXFWXUHLVGHÀQHGLQDFFBXVHUKDQGLVOLVWHGLQ)LJXUH
7KH W\SH ÀHOG LQ WKH VBDFFBWLPH VWUXFWXUH VKDOO LQGLFDWH WKH GDWD W\SH RI WKH GHOD\ WKDW VKDOO EH VWRUHG LQ WKH
VWUXFWXUH7KHW\SHVKDOOEHVSHFLÀHGXVLQJSUHGHÀQHGLQWHJHUFRQVWDQWVOLVWHGLQ7DEOH
7KHORZÀHOGVKDOOEHDQLQWHJHUWKDWUHSUHVHQWVWKHORZHUELWVRIDELWGHOD\YDOXH
7KHKLJKÀHOGVKDOOEHDQLQWHJHUWKDWUHSUHVHQWVWKHXSSHUELWVRIDELWGHOD\YDOXH
7KHUHDOÀHOGVKDOOEHDGRXEOHWKDWUHSUHVHQWVWKHGHOD\DVDUHDOQXPEHUYDOXH
W\SHGHIVWUXFWWBDFFBWLPH
^
LQWW\SH
LQWORZ
KLJK
GRXEOHUHDO
`VBDFFBWLPHSBDFFBWLPH
)LJXUH³7KHVBDFFBWLPHVWUXFWXUHIRUDFFBVHWBYDOXH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³3UHGHÀQHGWLPHFRQVWDQWVIRUWKHW\SHÀHOGRIVBDFFBWLPH
,QWHJHUFRQVWDQW
'HVFULSWLRQ
DFF7LPH
'HOD\LVDELWLQWHJHUWLPHVKDOOEHVFDOHGWRWKHWLPHVFDOHLQHIIHFW
IRUWKHPRGXOHFRQWDLQLQJWKHREMHFW
DFF6LP7LPH
'HOD\LVDELWLQWHJHUWLPHVKDOOEHVFDOHGWRWKHWLPHXQLWVEHLQJ
XVHGE\WKHVLPXODWRU
DFF5HDO7LPH
'HOD\LVDUHDOQXPEHUWLPHVKDOOEHVFDOHGWRWKHWLPHVFDOHLQHIIHFWIRU
WKHPRGXOHFRQWDLQLQJWKHREMHFW
7KHURXWLQHDFFBVHWBYDOXHVKDOOEHXVHGWRSHUIRUPDSURFHGXUDOFRQWLQXRXVDVVLJQPHQWRIDYDOXHWRDUHJLVWHURUWR
GHDVVLJQ WKH UHJLVWHU7KLV VKDOO EH WKH VDPH IXQFWLRQDOLW\ DV WKH SURFHGXUDO DVVLJQ DQG GHDVVLJQ NH\ZRUGV LQ WKH
9HULORJ+'/
7KHURXWLQHDFFBVHWBYDOXHVKDOODOVREHXVHGWRSHUIRUPDSURFHGXUDOIRUFHRIYDOXHRQWRDUHJLVWHURUQHWRUWR
UHOHDVHWKHUHJLVWHURUQHW7KLVVKDOOEHWKHVDPHIXQFWLRQDOLW\DVWKHSURFHGXUDOIRUFHDQGUHOHDVHNH\ZRUGVLQWKH
9HULORJ+'/
:KHQDQREMHFWLVGHDVVLJQHGRUUHOHDVHGXVLQJDFFBVHWBYDOXHWKHFXUUHQWYDOXHRIWKHREMHFWVKDOOEHUHWXUQHGWR
WKHVBVHWYDOBYDOXHVWUXFWXUH
7R DVVLJQ GHDVVLJQ IRUFH RU UHOHDVH DQ REMHFW XVLQJ DFFBVHWBYDOXH WKH VBVHWYDOBYDOXH DQG
VBVHWYDOBGHOD\VWUXFWXUHVVKDOOEHDOORFDWHGDQGWKHÀHOGVVKDOOEHVHWWRWKHDSSURSULDWHYDOXHV)RUWKHPRGHO
ÀHOGRIWKHVBVHWYDOBGHOD\VWUXFWXUHRQHRIWKHSUHGHÀQHGFRQVWDQWVOLVWHGLQ7DEOHVKDOOEHXVHG
7DEOH³3UHGHÀQHGDVVLJQIRUFHFRQVWDQWVIRUWKHPRGHOÀHOGRIVBVHWYDOBGHOD\
,QWHJHUFRQVWDQW
DFF$VVLJQ)ODJ
DFF'HDVVLJQ)ODJ
DFF)RUFH)ODJ
DFF5HOHDVH)ODJ
'HVFULSWLRQ
&RQWLQXRXVO\DVVLJQVDUHJLVWHUWRWKHLQGLFDWHGYDOXHZLWKQRGHOD\
RWKHUHYHQWVVFKHGXOHGIRUWKHREMHFWDUHRYHUULGGHQ
6DPHIXQFWLRQDOLW\DVWKH9HULORJ+'/SURFHGXUDODVVLJQNH\ZRUG
'HDVVLJQVDFRQWLQXRXVO\DVVLJQHGUHJLVWHURWKHUHYHQWVVFKHGXOHGIRU
WKHREMHFWDUHQRORQJHURYHUULGGHQ6DPHIXQFWLRQDOLW\DVWKH9HULORJ
+'/SURFHGXUDOGHDVVLJQNH\ZRUG
)RUFHVDYDOXHRQWRDUHJLVWHURUQHWRWKHUHYHQWVVFKHGXOHGIRUWKH
REMHFWDUHRYHUULGGHQ6DPHIXQFWLRQDOLW\DVWKH9HULORJ+'/SURFH
GXUDOIRUFHNH\ZRUG
5HOHDVHVDIRUFHGUHJLVWHURUQHWRWKHUHYHQWVVFKHGXOHGIRUWKHREMHFW
DUHQRORQJHURYHUULGGHQDQGQHWVLPPHGLDWHO\UHWXUQWRWKHFXUUHQW
GULYHQYDOXH6DPHIXQFWLRQDOLW\DVWKH9HULORJ+'/SURFHGXUDOUHOHDVH
NH\ZRUG
7KHH[DPSOHVKRZQLQ)LJXUHXVHVDFFBVHWBYDOXHWRVHWDQGSURSDJDWHDYDOXHRQWRDUHJLVWHU7KLVH[DPSOH
DVVXPHV WKH DSSOLFDWLRQ LV OLQNHG WR D XVHUGHÀQHG V\VWHP WDVN XVLQJ WKH 3/, LQWHUIDFH PHFKDQLVP FDOOHG
P\BVHWBYDOXHZKLFKKDVWKHIROORZLQJXVDJHIRUDIRXUELWUHJLVWHUU
P\BVHWBYDOXHU´[µ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
LQWP\BVHWBYDOXH
^
VWDWLFVBVHWYDOBGHOD\GHOD\BV ^^DFF5HDO7LPH`DFF,QHUWLDO'HOD\`
VWDWLFVBVHWYDOBYDOXHYDOXHBV ^DFF%LQ6WU9DO`
KDQGOHUHJ DFFBKDQGOHBWIDUJ
YDOXHBVYDOXHVWU DFFBIHWFKBWIDUJBVWU
GHOD\BVWLPHUHDO DFFBIHWFKBWIDUJ
`
DFFBVHWBYDOXHUHJYDOXHBVGHOD\BV
)LJXUH³8VLQJDFFBVHWBYDOXH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBYFOBDGG
DFFBYFOBDGG
6\QRSVLV
6HWDFDOOEDFNWRDFRQVXPHUURXWLQHZLWKYDOXHFKDQJHLQIRUPDWLRQZKHQHYHUDQREMHFWFKDQJHVYDOXH
6\QWD[
DFFBYFOBDGGREMHFWBKDQGOHFRQVXPHUBURXWLQHXVHUBGDWDYFOBIODJ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHWRDQREMHFWWREHPRQLWRUHGVXFKDVDUHJLVWHURU
QHW
&URXWLQHSRLQWHU
FRQVXPHUBURXWLQH
FKDU
XVHUBGDWD
8VHUGHÀQHGGDWDWKDWLVSDVVHGEDFNWRWKHFRQVXPHUURX
WLQHZKHQWKHREMHFWFKDQJHVYDOXH
LQW
YFOBÁDJ
3UHGHÀQHGLQWHJHUFRQVWDQWWKDWVHOHFWVWKHW\SHRIFKDQJH
LQIRUPDWLRQUHSRUWHGWRWKHFRQVXPHUURXWLQH
8QTXRWHGQDPHRIWKH&URXWLQHWREHFDOOHGZKHQWKH
REMHFWFKDQJHVYDOXH
8VHDFFBYFOBGHOHWHWRUHPRYHD9&/FDOOEDFNPRQLWRU
7KH$&&URXWLQHDFFBYFOBDGGVKDOOVHWXSDFDOOEDFNPRQLWRURQDQREMHFWWKDWVKDOOFDOODXVHUGHÀQHGFRQVXPHU
URXWLQHZKHQWKHREMHFWFKDQJHVYDOXH7KHFRQVXPHUURXWLQHVKDOOEHSDVVHGORJLFYDOXHLQIRUPDWLRQRUORJLFYDOXH
DQGVWUHQJWKLQIRUPDWLRQDERXWWKHREMHFW
7KHDFFBYFOBDGGURXWLQHUHTXLUHVIRXUDUJXPHQWVDVGHVFULEHGLQWKHIROORZLQJSDUDJUDSKV
7KHREMHFWBKDQGOHDUJXPHQWLVDKDQGOHWRWKHREMHFWWREHPRQLWRUHGE\DQDSSOLFDWLRQ7KH9&/VKDOOPRQLWRUYDOXH
FKDQJHVIRUWKHIROORZLQJREMHFWV
³
³
³
³
³
³
6FDODUYHFWRUDQGELWVHOHFWVRIUHJLVWHUV
6FDODUYHFWRUDQGELWVHOHFWVRIQHWV
,QWHJHUUHDODQGWLPHYDULDEOHV
0RGXOHSRUWV
3ULPLWLYHRXWSXWRULQRXWWHUPLQDOV
(YHQWV
7KHREMHFWBKDQGOHSDVVHGWRDFFBYFOBDGGLVQRWUHWXUQHGZKHQWKHFRQVXPHUURXWLQHLVFDOOHG+RZHYHUWKHKDQGOH
FDQEHSDVVHGXVLQJWKHXVHUBGDWDDUJXPHQW
7KHFRQVXPHUBURXWLQHDUJXPHQWLVDSRLQWHUWRD&DSSOLFDWLRQ7KLVDSSOLFDWLRQVKDOOEHFDOOHGZKHQHYHUWKHREMHFW
FKDQJHVYDOXH:KHQDYDOXHFKDQJHFDOOEDFNRFFXUVWKHFRQVXPHUBURXWLQHVKDOOEHSDVVHGWKHXVHUBGDWDDUJXPHQW
DQGDSRLQWHUWRDYFBUHFRUGVWUXFWXUHZKLFKVKDOOFRQWDLQLQIRUPDWLRQDERXWWKHFKDQJH
5HIHUWRIRUDIXOOGHVFULSWLRQRIFRQVXPHUURXWLQHVDQGWKHYFBUHFRUGVWUXFWXUH
7KHXVHUBGDWDDUJXPHQWLVXVHUGHÀQHGGDWDVXFKDVWKHREMHFWQDPHWKHREMHFWKDQGOHWKHREMHFWYDOXHRUDSRLQWHU
WRDGDWDVWUXFWXUH7KHYDOXHRIWKHXVHUBGDWDDUJXPHQWVKDOOEHSDVVHGWRWKHFRQVXPHUURXWLQHHDFKWLPHDFDOOEDFN
RFFXUV1RWHWKDWWKHXVHUBGDWDDUJXPHQWLVGHÀQHGDVFKDUDFWHUVWULQJSRLQWHUDQGWKHUHIRUHDQ\RWKHUW\SHVKRXOGEH
FDVWWRDFKDU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHYFOBÁDJDUJXPHQWVKDOOVHWWKHW\SHRILQIRUPDWLRQWKHFDOOEDFNPHFKDQLVPVKDOOUHSRUW7KHUHDUHWZRW\SHVRI
ÁDJVDVVKRZQLQ7DEOH
7DEOH³YFOBÁDJFRQVWDQWVXVHGLQDFFBYFOBDGG
YFOBÁDJ
:KDWLWGRHV
YFOBYHULORJBORJLF
,QGLFDWHVWKH9&/FDOOEDFNPHFKDQLVPVKDOOUHSRUW
LQIRUPDWLRQRQORJLFYDOXHFKDQJHV
YFOBYHULORJBVWUHQJWK
,QGLFDWHVWKH9&/FDOOEDFNPHFKDQLVPVKDOOUHSRUW
LQIRUPDWLRQRQORJLFYDOXHDQGVWUHQJWKFKDQJHV
,IDQDSSOLFDWLRQFDOOVDFFBYFOBDGGZLWKWKHVDPHDUJXPHQWVPRUHWKDQRQFHWKH9&/FDOOEDFNPHFKDQLVPVKDOO
RQO\ FDOO WKH FRQVXPHU URXWLQH RQFH ZKHQ WKH REMHFW FKDQJHV YDOXH ,I DQ\ RI WKH9&/ DUJXPHQWV LQFOXGLQJ WKH
XVHUBGDWDDUHGLIIHUHQWWKH9&/FDOOEDFNPHFKDQLVPVKDOOFDOOWKHFRQVXPHUURXWLQHPXOWLSOHWLPHVRQFHIRUHDFK
XQLTXHDFFBYFOBDGG
,IPXOWLSOH3/,DSSOLFDWLRQVPRQLWRUWKHVDPHREMHFWDWWKHVDPHWLPHHDFKDSSOLFDWLRQVKDOOUHFHLYHDVHSDUDWHFDOO
ZKHQHYHUWKDWREMHFWFKDQJHVYDOXH7\SLFDOO\PXOWLSOHDSSOLFDWLRQVKDYHGLVWLQFWFRQVXPHUURXWLQHVDQGXVHUBGDWD
SRLQWHUV7KHVHGLIIHUHQWFRQVXPHUURXWLQHVDOORZWKHYDOXHFKDQJHLQIRUPDWLRQWREHSURFHVVHGLQGLIIHUHQWZD\V
5HIHUWRIRUDQH[DPSOHRIXVLQJDFFBYFOBDGG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
DFFBYFOBGHOHWH
DFFBYFOBGHOHWH
6\QRSVLV
5HPRYHVD9&/FDOOEDFNPRQLWRU
6\QWD[
DFFBYFOBGHOHWHREMHFWBKDQGOHFRQVXPHUBURXWLQHXVHUBGDWDYFOBIODJ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
KDQGOH
REMHFWBKDQGOH
+DQGOHWRWKHREMHFWWREHPRQLWRUHGVSHFLÀHGLQWKHFDOOWR
DFFBYFOBDGG
&URXWLQHSRLQWHU
FRQVXPHUBURXWLQH
8QTXRWHGQDPHRIWKH&URXWLQHVSHFLÀHGLQWKHFDOOWR
DFFBYFOBDGG
FKDU
XVHUBGDWD
8VHUGHÀQHGGDWDVSHFLÀHGLQWKHFDOOWRDFFBYFOBDGG
LQW
YFOBÁDJ
3UHGHÀQHGLQWHJHUFRQVWDQWYFOBYHULORJ
8VHDFFBYFOBDGGWRSODFHD9&/FDOOEDFNPRQLWRURQDQREMHFW
7KH $&& URXWLQH DFFBYFOBGHOHWH VKDOO UHPRYH D 9&/ FDOOEDFN PRQLWRU SUHYLRXVO\ UHTXHVWHG ZLWK D FDOO WR
DFFBYFOBDGG 7KH DFFBYFOBGHOHWH URXWLQH UHTXLUHV IRXU DUJXPHQWV DV GHVFULEHG LQ WKH IROORZLQJ SDUDJUDSKV
:KHQPXOWLSOH3/,DSSOLFDWLRQVDUHPRQLWRULQJWKHVDPHREMHFWDFFBYFOBGHOHWHVKDOOVWRSPRQLWRULQJWKHREMHFW
RQO\IRUWKHDSSOLFDWLRQDVVRFLDWHGZLWKDVSHFLÀFDFFBYFOBDGGFDOO
7KHREMHFWBKDQGOHDUJXPHQWLVDKDQGOHWRWKHREMHFWIRUZKLFKWKH9&/FDOOEDFNPRQLWRULVWREHUHPRYHG7KLVKDV
WREHDKDQGOHWRWKHVDPHREMHFWWKDWZDVXVHGZKHQDFFBYFOBDGGZDVFDOOHG
7KHFRQVXPHUBURXWLQHDUJXPHQWLVWKHXQTXRWHGQDPHRIWKH&DSSOLFDWLRQFDOOHGE\WKH9&/FDOOEDFNPRQLWRU7KLV
KDVWREHWKHVDPH&DSSOLFDWLRQWKDWZDVVSHFLÀHGZKHQDFFBYFOBDGGZDVFDOOHG
7KH XVHUBGDWD DUJXPHQW LV XVHUGHÀQHG GDWD WKDW LV SDVVHG WR WKH FRQVXPHU URXWLQH HDFK WLPH WKH REMHFW FKDQJHV
YDOXH7KLVKDVWREHWKHVDPHYDOXHWKDWZDVVSHFLÀHGZKHQDFFBYFOBDGGZDVFDOOHG
7KHYFOBÁDJDUJXPHQWLVDSUHGHÀQHGLQWHJHUFRQVWDQWDQGKDVWREHYFOBYHULORJ7KLVFRQVWDQWVKDOOEHXVHGLQSODFH
RIWKHYFOBÁDJYDOXHVXVHGZLWKDFFBYFOBDGG
5HIHUWRIRUDQH[DPSOHRIXVLQJDFFBYFOBGHOHWH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
DFFBYHUVLRQ
DFFBYHUVLRQ
6\QRSVLV
*HWDSRLQWHUWRDFKDUDFWHUVWULQJWKDWLQGLFDWHVYHUVLRQQXPEHURIWKH$&&URXWLQHVRIWZDUH
6\QWD[
DFFBYHUVLRQ
7\SH
5HWXUQV
FKDU
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
&KDUDFWHUVWULQJSRLQWHU
1DPH
'HVFULSWLRQ
1RQH
8VHDFFBSURGXFWBYHUVLRQWRJHWWKHYHUVLRQRIWKHVRIWZDUHSURGXFWLQXVH
8VHDFFBSURGXFWBW\SHWRJHWWKHW\SHRIVRIWZDUHSURGXFWLQXVH
7KH$&& URXWLQH DFFBYHUVLRQ VKDOO UHWXUQ D SRLQWHU WR D FKDUDFWHU VWULQJ WKDW LQGLFDWHV WKH YHUVLRQ RI WKH$&&
URXWLQHVXVHGLQWKHVRIWZDUHSURGXFWWKDWFDOOHGWKH3/,DSSOLFDWLRQ7KHUHWXUQYDOXHIRUWKLVURXWLQHLVSODFHGLQWKH
$&&LQWHUQDOVWULQJEXIIHU6HHIRUH[SODQDWLRQRIVWULQJVLQ$&&URXWLQHV
7KHFKDUDFWHUVWULQJVKDOOEHLQWKHIROORZLQJIRUPDW
$FFHVVURXWLQHV9HUVLRQYHUVLRQBQXPEHU!
)RUH[DPSOHLIWKHVRIWZDUHSURGXFWLVXVLQJWKH,(((6WG3/,YHUVLRQRI$&&URXWLQHVDFFBYHUVLRQ
ZRXOGUHWXUQDSRLQWHUWRWKHIROORZLQJVWULQJ
´$FFHVVURXWLQHV9HUVLRQ,(((3/,µ
127(³7KHVWULQJUHWXUQHGE\DFFBYHUVLRQVKDOOEHGHÀQHGE\WKHVRIWZDUHSURGXFWYHQGRU
7KH H[DPSOH VKRZQ LQ )LJXUH XVHV DFFBYHUVLRQ WR LGHQWLI\ WKH YHUVLRQ RI $&& URXWLQHV OLQNHG WR WKH
DSSOLFDWLRQ
LQFOXGHDFFBXVHUK
VKRZBYHUVLRQV
^
LQLWLDOL]HHQYLURQPHQWIRU$&&URXWLQHV
DFFBLQLWLDOL]H
DFFBFRQILJXUHDFF'HYHORSPHQW9HUVLRQ´,(((3/,µ
VKRZYHUVLRQRI$&&URXWLQHV
DQGYHUVLRQRI9HULORJWKDWLVOLQNHGWR$&&URXWLQHV
LRBSULQWI5XQQLQJVZLWKV?QDFFBYHUVLRQDFFBSURGXFWBYHUVLRQ
`
DFFBFORVH
)LJXUH³8VLQJDFFBYHUVLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
8VLQJ7)URXWLQHV
7KLVVHFWLRQSURYLGHVDQRYHUYLHZRIWKHW\SHVRIRSHUDWLRQVWKDWDUHGRQHZLWKWKH3/,WDVNIXQFWLRQ7)URXWLQHV
'HWDLOHGGHVFULSWLRQVRIWKHURXWLQHVDUHSURYLGHGLQWKHQH[WVHFWLRQ
7)URXWLQHGHÀQLWLRQ
7KH3/,7)URXWLQHVVRPHWLPHVUHIHUUHGWRDVXWLOLW\URXWLQHVSURYLGHDPHFKDQLVPWRPDQLSXODWHWKHDUJXPHQWVRI
XVHUGHÀQHGV\VWHPWDVNVDQGIXQFWLRQVDQGWRV\QFKURQL]HLQWHUDFWLRQEHWZHHQDWDVNDQGWKHVLPXODWRU$SSURSULDWH
DSSOLFDWLRQVLQFOXGHVWLPXOXVJHQHUDWLRQHUURUFKHFNLQJDQGLQWHUIDFHVWR&PRGHOV
7)URXWLQHSDUDPHWHUV
,Q WKH FRQWH[W RI 7) URXWLQHV WKH WHUP SDUDPHWHU VKDOO UHIHU WR WKH DUJXPHQWV RI XVHUGHÀQHG V\VWHP WDVNV DQG
IXQFWLRQV³LWGRHVQRWUHIHUWR9HULORJ+'/SDUDPHWHUV
7KHQXPEHURISDUDPHWHUVSDVVHGWRDV\VWHPWDVNVKDOOEHUHWXUQHGE\WIBQXPS$W\SHIRUHDFKSDUDPHWHUVKDOOEH
UHWXUQHGE\WIBW\SHSDQGLVSULPDULO\XVHGWRGHWHUPLQHLIDSDUDPHWHULVZULWDEOH
$SDUDPHWHUVKDOOEHFRQVLGHUHGUHDGRQO\LILQWKH9HULORJ+'/VRXUFHGHVFULSWLRQWKHSDUDPHWHUFDQQRWEHXVHGRQ
WKHOHIWKDQGVLGHRIDSURFHGXUDODVVLJQPHQWVWDWHPHQW6LJQDOVGHFODUHGDVRQHRIWKHQHWGDWDW\SHVRUWKHHYHQWGDWD
W\SHRUELWVHOHFWVSDUWVHOHFWVRUFRQFDWHQDWLRQVRIQHWGDWDW\SHVVKDOOEHUHDGRQO\$PRGXOHLQVWDQFHQDPHRUD
SULPLWLYHLQVWDQFHQDPHVKDOODOVREHUHDGRQO\
3DUDPHWHUVVKDOOEHFRQVLGHUHGZULWDEOHIURPWKH3/,LIWKHSDUDPHWHUVFDQEHXVHGRQWKHOHIWKDQGVLGHRISURFHGXUDO
DVVLJQPHQWLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ6LJQDOVGHFODUHGDVUHJLQWHJHUWLPHRUUHDOVKDOOEHZULWDEOHDV
ZHOODVELWVHOHFWVSDUWVHOHFWVDQGFRQFDWHQDWLRQVRIWKHVHGDWDW\SHV
5HDGLQJDQGZULWLQJSDUDPHWHUYDOXHV
8VHUGHÀQHGV\VWHPWDVNDQGIXQFWLRQSDUDPHWHUYDOXHVFDQEHGHWHUPLQHGDQGDOWHUHGLQDQXPEHURIZD\VZLWKWKH
7)URXWLQHVGHSHQGLQJRQIDFWRUVVXFKDVYDOXHW\SHGDWDVL]HDQGGHVLUHGIRUPDW
5HDGLQJDQGZULWLQJVWDWHSDUDPHWHUYDOXHV
7RDFFHVVWKHVWDWHORJLFDQGYDOXHRIDSDUDPHWHURIVL]HOHVVWKDQRUHTXDOWRELWVWKHURXWLQHWIBJHWSFDQ
EHXVHG7RVHWWKHVWDWHYDOXHRIDSDUDPHWHURIVL]HOHVVWKDQRUHTXDOWRELWV WIBSXWSFDQEHXVHG,IWKH
SDUDPHWHULV²ELWVWIBJHWORQJSDQGWIBSXWORQJSFDQEHXVHG)RUSDUDPHWHUVRIW\SHUHDOWIBJHWUHDOSDQG
WIBSXWUHDOSFDQEHXVHG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
5HDGLQJDQGZULWLQJVWDWHYDOXHV
,IVWDWHVORJLF;DQG=DUHUHTXLUHGDQGDVWULQJUHSUHVHQWDWLRQRIWKHYDOXHLVDSSURSULDWHWIBVWUJHWSFDQ
EHXVHGWRDFFHVVWKHYDOXH7KHURXWLQHVWIBVWUGHOSXWSWIBVWUORQJGHOSXWSDQGWIBVWUUHDOGHOSXWSFDQEHXVHG
WRZULWHVWDWHYDOXHVWRZULWDEOHSDUDPHWHUV)RUDSSOLFDWLRQVZLWKDKLJKIUHTXHQF\RI3/,FDOOVWKHRYHUKHDGRI
WKHVHVWULQJEDVHGURXWLQHVFDQEHH[FHVVLYH7KHIROORZLQJSDUDJUDSKGHVFULEHVDQDOWHUQDWLYH
VWDWHYDOXHVFDQDOVREHDFFHVVHGZLWKWKHURXWLQHWIBH[SULQIR7KLVURXWLQHVKDOOFUHDWHDSHUVLVWHQWVWUXFWXUHWKDW
FRQWDLQVWKHVWDWHYDOXHRIDSDUDPHWHUHQFRGHGLQDVBYHFYDOVWUXFWXUH$IWHUWIBH[SULQIRKDVEHHQFDOOHGRQFH
IRUDSDUDPHWHUWKHSRLQWHUWRWKHVBYHFYDOVWUXFWXUHFDQEHVDYHG7KHSDUDPHWHUYDOXHFDQEHFKDQJHGXVLQJWKDW
VWUXFWXUHDORQJZLWKURXWLQHVWIBSURSDJDWHSWRVHQGWKHYDOXHLQWKHVWUXFWXUHLQWRDVLPXODWLRQDQGWIBHYDOXDWHS
WRXSGDWHWKHYDOXHLQWKHVWUXFWXUHWRWKHFXUUHQWVLPXODWLRQYDOXH
5HDGLQJDQGZULWLQJVWUHQJWKYDOXHV
6WUHQJWKYDOXHVRQVFDODUQHWSDUDPHWHUVFDQDFFHVVHGZLWKWKHURXWLQHWIBQRGHLQIR
5HDGLQJDQGZULWLQJWRPHPRULHV
0HPRU\ DUUD\ YDOXHV FDQ EH DFFHVVHG ZLWK WKH URXWLQH WIBQRGHLQIR 7KLV URXWLQH UHWXUQV SRLQWHU WR D PHPYDO
VWUXFWXUHWKDWUHSUHVHQWVWKHDUUD\LQWKH9HULORJ+'/VRIWZDUHSURGXFW6HWWLQJDYDOXHLQWKH PHPYDOVWUXFWXUH
VKDOOPDNHLWDYDLODEOHIRUWKHVRIWZDUHWRRODFFHVVEXWWKLVGRHVQRWDXWRPDWLFDOO\FDXVHWKHYDOXHWREHSURSDJDWHGWR
DQ\ULJKWKDQGVLGHPHPRU\UHIHUHQFHV
5HDGLQJDQGZULWLQJVWULQJYDOXHV
7KHURXWLQH WIBJHWFVWULQJSVKDOOUHWXUQWKHVWULQJUHSUHVHQWDWLRQRIDVWULQJFRQVWDQWRUDYHFWRUSDUDPHWHU,IWKH
SDUDPHWHULVQRWDVWULQJYDOXHRUYHFWRUWKHUHVXOWVRIWIBJHWFVWULQJSDUHQRWSUHGLFWDEOH7KHUHLVQRGLUHFWPHWKRG
WR ZULWH VWULQJ YDOXHV XVLQJ 7) URXWLQHV EXW LW FDQ EH DFFRPSOLVKHG E\ ZULWLQJ FKDUDFWHU YDOXHV WR ELW UHJLVWHU
HOHPHQWVLQDYHFWRUUHJLVWHUXVLQJWKHWIBH[SULQIRYDOXHVWUXFWXUH
:ULWLQJUHWXUQYDOXHVRIXVHUGHÀQHGIXQFWLRQV
VWDWH YDOXHV FDQ EH VHW DV WKH UHWXUQ YDOXH RI D XVHUGHÀQHG IXQFWLRQ XVLQJ WIBSXWS DQG WIBSXWUHDOS ZLWK D
SDUDPHWHUYDOXHRI
:ULWLQJWKHFRUUHFW&GDWDW\SHV
,WLVLPSRUWDQWWRHQVXUHWKDWWKHGDWDW\SHRIWKHDUJXPHQWWRDQ\RIWKHWIBSXWURXWLQHVLVFRQVLVWHQWZLWKWKHGDWDW\SH
UHTXLUHGE\WKHURXWLQHDQGVSHFLÀHGSDUDPHWHU7KHUHLVQRLQKHUHQWGDWDW\SHFKHFNLQJLQWKH&ODQJXDJH
7KHIROORZLQJH[DPSOHVLOOXVWUDWHZKDWFDXWLRQVVKRXOGEHWDNHQ
,I WKH VHFRQG SDUDPHWHU RI D V\VWHP WDVNIXQFWLRQ LQVWDQFH LV RI W\SH WIBUHDGZULWHUHDO PHDQLQJ WKH SDUDPHWHU LV
GHFODUHGDVDUHDOUHJLVWHULQWKH9HULORJ+'/VRXUFHGHVFULSWLRQWKHIROORZLQJWIBSXWURXWLQHVVKDOOSURGXFHYDOLG
UHVXOWV
LQWL WIBSXWSLZULWHDQLQWHJHUYDOXHWRQGSDUDPHWHU
7KLVH[DPSOHVHWVWKHVHFRQGWDVNIXQFWLRQSDUDPHWHUWR³DVVLJQLQJDQLQWHJHUYDOXHWRDUHDOYDULDEOHLV
OHJDOLQWKH9HULORJ+'/
GRXEOHG WIBSXWUHDOSGZULWHDUHDOYDOXHWRQGSDUDPHWHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KLVH[DPSOHVHWVWKHVHFRQGWDVNIXQFWLRQSDUDPHWHUWR
7KHIROORZLQJURXWLQHVKRZHYHUVKDOOSURGXFHLQYDOLGUHVXOWVIRUWKHIROORZLQJUHDVRQV
LQWL WIBSXWUHDOSLLQYDOLGUHVXOW
7KHVWDWHPHQWLQWL SDVVHVDELWLQWHJHUWRWIBSXWUHDOSZKLFKH[SHFWVDELWGRXEOHYDOXHW\SH
6LQFHWKHUHLVQRGDWDW\SHFKHFNLQJWIBSXWUHDOSVKDOOUHDGELWVRIXQGHÀQHGGDWDDQGWU\WRXVHLWDVLILW
ZHUHYDOLGGDWD7KHUHVXOWLVXQSUHGLFWDEOH
IORDWI WIBSXWUHDOSILQYDOLGUHVXOW
7KHÁRDWVWDWHPHQWSDVVHVDELWÁRDWWR WIBSXWUHDOSZKLFKLVH[SHFWLQJDELWGRXEOHYDOXHW\SH7KH
UHVXOWLVXQSUHGLFWDEOH
GRXEOHG WIBSXWSGLQYDOLGUHVXOW
7KH WIBSXWS URXWLQH VKDOO WDNH RQO\ WKH ORZHU ELWV RI WKH ELW GRXEOH SDVVHG WR LW E\ WKH VWDWHPHQW
GRXEOHG 9DOXHFKDQJHGHWHFWLRQ
9DOXHFKDQJHVRQSDUDPHWHUVFDQEHGHWHFWHGE\HQDEOLQJDV\QFKURQRXVFDOOEDFNVZLWKWIBDV\QFKRQ7KHFDOOEDFNV
FDQEHGLVDEOHGZLWKWIBDV\QFKRII:KHQSDUDPHWHUFKDQJHFDOOEDFNVDUHHQDEOHGZLWKWIBDV\QFKRQZKHQHYHUD
SDUDPHWHUFKDQJHVYDOXHWKHPLVFWIDSSOLFDWLRQDVVRFLDWHGZLWKWKHXVHUGHÀQHGV\VWHPWDVNIXQFWLRQVKDOOEHFDOOHG
EDFN ZLWK WKUHH LQWHJHU DUJXPHQWV GDWD UHDVRQ DQG SDUDPYF$UJXPHQW UHDVRQ VKDOO EH UHDVRQBSDUDPYF LI WKH
SDUDPHWHUFKDQJHGYDOXHRUUHDVRQBSDUDPGUFLIDGULYHURIWKHSDUDPHWHUFKDQJHGYDOXHEXWWKHSDUDPHWHUGLGQRW
FKDQJH7KHYDOXHFKDQJHFDQEHH[DPLQHGLPPHGLDWHO\RUDVHFRQGFDOOEDFNFDQEHUHTXHVWHGODWHULQWKHVDPHWLPH
VWHSDVGHVFULEHGLQ%\VHWWLQJDVHFRQGFDOOEDFNDWWKHHQGRIWKHWLPHVWHSDQDSSOLFDWLRQFDQSURFHVVDOO
SDUDPHWHU YDOXH FKDQJHV ZLWKLQ LQ D WLPH VWHS DW RQFH 7KH URXWLQHV WIBFRS\SYFBÁDJ WIBPRYHSYFBÁDJ
WIBWHVWSYFBÁDJDQGWIBJHWSFKDQJHFDQEHXVHGWRGHWHUPLQHDOOWKHSDUDPHWHUVWKDWFKDQJHGLQDWLPHVWHS
6LPXODWLRQWLPH
7)URXWLQHVDUHSURYLGHGWRUHDGVLPXODWLRQWLPHDQGWRVFDOHGHOD\VWRVLPXODWLRQWLPHVFDOHV
7KHURXWLQHV WIBJHWWLPHDQG WIBJHWORQJWLPHVKDOOUHWXUQWKHFXUUHQWVLPXODWLRQWLPHLQXQVLJQHGIRUPDW7KHVH
WLPHV VKDOO EH VFDOHG WR WKH WLPHVFDOH RI WKH PRGXOH ZKHUH WKH V\VWHP WDVN RU IXQFWLRQ LV LQYRNHG 7KH URXWLQH
WIBVWUJHWWLPHVKDOOUHWXUQXQVFDOHGVLPXODWLRQWLPHLQDVWULQJIRUPDW
3/,7)URXWLQHVWKDWLQYROYHWLPHVKDOODXWRPDWLFDOO\VFDOHGHOD\YDOXHVWRWKHWLPHVFDOHRIWKHPRGXOHFRQWDLQLQJWKH
LQVWDQFHRIWKHXVHUGHÀQHGWDVNRUIXQFWLRQ
7KHURXWLQHV WIBJHWWLPHXQLWDQG WIBJHWWLPHSUHFLVLRQFDQEHXVHGWRREWDLQWKHWLPHVFDOHXQLWDQGSUHFLVLRQRID
PRGXOH7KHVHURXWLQHVFDQDOVREHXVHGWRREWDLQWKHLQWHUQDOVLPXODWLRQWLPHXQLWZKLFKLVWKHVPDOOHVWSUHFLVLRQRI
DOO PRGXOHV ZLWKLQ D VLPXODWLRQ 7KH URXWLQHV WIBVFDOHBGHOD\ WIBVFDOHBORQJGHOD\ WIBVFDOHBUHDOGHOD\
WIBXQVFDOHBGHOD\ WIBXQVFDOHBORQJGHOD\ DQG WIBXQVFDOHBUHDOGHOD\ FDQ EH XVHG WR FRQYHUW EHWZHHQ VFDOHG
GHOD\VDQGLQWHUQDOVLPXODWLRQWLPH
6LPXODWLRQV\QFKURQL]DWLRQ
7KHUHDUH7)URXWLQHVWKDWDOORZV\QFKURQL]HGFDOOLQJRIWKHPLVFWIDSSOLFDWLRQDVVRFLDWHGZLWKDXVHUGHÀQHGV\VWHP
WDVNRUIXQFWLRQ7KHPLVFWIDSSOLFDWLRQFDQEHFDOOHGDWWKHHQGRIWKHFXUUHQWWLPHVWHSRUDWVRPHIXWXUHWLPHVWHS
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KH URXWLQHV WIBV\QFKURQL]H DQG WIBURV\QFKURQL]H VKDOO FDXVH WKH PLVFWI DSSOLFDWLRQ DVVRFLDWHG ZLWK D XVHU
GHÀQHGV\VWHPWDVNWREHFDOOHGEDFNLQWKHFXUUHQWVLPXODWLRQWLPHVWHS
7KHWIBV\QFKURQL]HURXWLQHVKDOOSODFHWKHFDOOEDFNDWWKHHQGRIWKHLQDFWLYHHYHQWTXHXHIRUWKHFXUUHQWWLPHVWHS
7KH PLVFWI DSSOLFDWLRQ VKDOO EH FDOOHG ZLWK UHDVRQBV\QFK ,W LV SRVVLEOH IRU VXEVHTXHQW HYHQWV WR EH DGGHG WR WKH
FXUUHQWWLPHVWHSDIWHUWKH WIBV\QFKURQL]HFDOOEDFNIRUWKLVUHDVRQZKHQWKHFDOOEDFNRFFXUVWKHQH[WVFKHGXOHG
WLPHVWHSFDQQRWEHGHWHUPLQHG7KH3/,DSSOLFDWLRQFDQSURSDJDWHQHZYDOXHVIURPWKHPLVFWIFDOOLQUHDVRQBV\QFK
PRGH
7KH WIBURV\QFKURQL]HFDOOEDFNVKDOORFFXUDIWHUDOODFWLYHLQDFWLYHDQGQRQEORFNLQJDVVLJQHYHQWVIRUDWLPHVWHS
KDYH EHHQ SURFHVVHG 7KH PLVFWI DSSOLFDWLRQ VKDOO EH FDOOHG ZLWK UHDVRQBURV\QFK :LWK UHDVRQBURV\QFK LW LV
SRVVLEOHWRGHWHUPLQHWKHWLPHRIWKHQH[WVFKHGXOHGWLPHVWHSXVLQJWIBJHWQH[WORQJWLPH9DOXHVFDQQRWEHZULWWHQ
WRSDUDPHWHUVGXULQJDUHDVRQBURV\QFKFDOOEDFNWKH
UR
LQGLFDWHVUHDGRQO\
7KHURXWLQHWIBVHWGHOD\DQGLWVYDULDWLRQVVKDOOVFKHGXOHWKHPLVFWIDSSOLFDWLRQWREHFDOOHGEDFNDWDVSHFLÀHGWLPH
ZLWK UHDVRQ DUJXPHQW UHDVRQBUHDFWLYDWH 7KH URXWLQH WIBFOHDUDOOGHOD\V VKDOO UHPRYH DQ\ SUHYLRXVO\ VFKHGXOHG
FDOOEDFNVRIWKLVW\SH
,QVWDQFHVRIXVHUGHÀQHGWDVNRUIXQFWLRQV
7KH URXWLQH WIBJHWLQVWDQFH VKDOO UHWXUQ D XQLTXH LGHQWLÀHU IRU HDFK LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU
IXQFWLRQLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ7KLVYDOXHFDQWKHQEHXVHGDVWKH LQVWDQFHBSDUJXPHQWWRDOOWKH
WIBLURXWLQHVVRWKDWWKHSDUDPHWHUVRIRQHLQVWDQFHFDQEHPDQLSXODWHGIURPDQRWKHUWDVNRUIXQFWLRQLQVWDQFH
0RGXOHDQGVFRSHLQVWDQFHQDPHV
7KH IXOO KLHUDUFKLFDO SDWK QDPH RI WKH PRGXOH WKDW FRQWDLQV DQ LQVWDQFH VKDOO EH UHWXUQHG E\ WKH URXWLQH
WIBPLSQDPH7KHIXOOQDPHRIWKHFRQWDLQLQJVFRSHZKLFKFDQEHDQ9HULORJ+'/WDVNRUIXQFWLRQDQDPHGEORFN
RUDPRGXOHLQVWDQFHVKDOOEHUHWXUQHGE\WIBVSQDPH
6DYLQJLQIRUPDWLRQIURPRQHV\VWHP7)FDOOWRWKHQH[W
7KH3/,7)URXWLQHVWIBVHWZRUNDUHDDQGWIBJHWZRUNDUHDVKDOOSURYLGHDVSHFLDOVWRUDJHZRUNDUHDWKDWFDQEH
XVHGIRU
³ 6DYLQJGDWDGXULQJRQHFDOOWRD3/,DSSOLFDWLRQWKDWFDQEHUHWULHYHGGXULQJDVXEVHTXHQWFDOOWRWKHDSSOLFD
WLRQ
³ 3DVVLQJGDWDIURPRQHW\SHRI3/,DSSOLFDWLRQWRDQRWKHUVXFKDVIURPDFKHFNWIDSSOLFDWLRQWRDFDOOWIDSSOL
FDWLRQ
'LVSOD\LQJRXWSXWPHVVDJHV
7KHURXWLQHLRBSULQWIFDQEHXVHGLQSODFHRIWKH&SULQWIVWDWHPHQW7KLVURXWLQHKDVHVVHQWLDOO\WKHVDPHV\QWD[
DQGVHPDQWLFVDVSULQWIEXWLWGLVSOD\VWKHRXWSXWPHVVDJHWRERWKWKHVWDQGDUGRXWSXWRIWKHVRIWZDUHSURGXFWDQG
WRWKHORJÀOHRIWKHVRIWZDUHSURGXFW
7KHURXWLQHLRBPFGSULQWILVDOVRVLPLODUWRWKH&SULQWIEXWSHUPLWVZULWLQJLQIRUPDWLRQWRÀOHVWKDWZHUHRSHQHG
ZLWKLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQXVLQJWKHIRSHQEXLOWLQV\VWHPIXQFWLRQ
7KH URXWLQHV WIBZDUQLQJ WIBHUURU WIBPHVVDJH DQG WIBWH[W FDQ EH XVHG WR GLVSOD\ ZDUQLQJ DQG HUURU
PHVVDJHV WKDW DUH DXWRPDWLFDOO\ IRUPDWWHG WR D VLPLODU IRUPDW DV WKH ZDUQLQJ DQG HUURU PHVVDJHV IRU WKH VRIWZDUH
SURGXFW 7KH URXWLQHV WIBHUURU DQG WIBPHVVDJH VKDOO DOVR SURYLGH FRQWURO IRU DERUWLQJ WKH VRIWZDUH SURGXFW
H[HFXWLRQZKHQDQHUURULVGHWHFWHG
6HFWLRQ
,(((
6WG
6WRSSLQJDQGÀQLVKLQJ
7KHURXWLQHVWIBGRVWRSDQGWIBGRÀQLVKDUHWKH3/,HTXLYDOHQWVWRWKHEXLOWLQV\VWHPWDVNVVWRSDQGÀQLVK
6HFWLRQ
,(((
6WG
6HFWLRQ
7)URXWLQHGHÀQLWLRQV
7KLV VHFWLRQ GHÀQHV WKH 3/, 7) URXWLQHV H[SODLQLQJ WKHLU IXQFWLRQ V\QWD[ DQG XVDJH 7KH URXWLQHV DUH OLVWHG LQ
DOSKDEHWLFDORUGHU6HH6HFWLRQIRUFRQYHQWLRQVWKDWDUHXVHGLQWKHGHÀQLWLRQVRIWKH3/,URXWLQHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
LRBPFGSULQWI
LRBPFGSULQWI
6\QRSVLV
:ULWHDIRUPDWWHGPHVVDJHWRRQHRUPRUHÀOHV
6\QWD[
LRBPFGSULQWIPFGIRUPDWDUJDUJ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
PFG
$QLQWHJHUPXOWLFKDQQHOGHVFULSWRUYDOXHUHSUHVHQWLQJRQH
RUPRUHRSHQÀOHV
TXRWHGVWULQJRU
FKDU
IRUPDW
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
WKDWFRQWUROVWKHPHVVDJHWREHZULWWHQ
DUJDUJ
WRDUJXPHQWVXVHGLQWKHIRUPDWFRQWUROVWULQJWKH
W\SHRIHDFKDUJXPHQWVKRXOGEHFRQVLVWHQWZLWKKRZLWLV
XVHGLQWKHIRUPDWVWULQJ
8VHLRBSULQWIWRZULWHPHVVDJHVWRVWDQGDUGRXWSXWDQGWRD9HULORJSURGXFWORJÀOH
7KH7)URXWLQH LRBPFGSULQWIVKDOOZULWHDIRUPDWWHGPHVVDJHWRRQHRUPRUHRSHQÀOHVSRLQWHGWRE\WKHPFG
PXOWLFKDQQHOGHVFULSWRU7KHIXQFWLRQDOLW\LVVLPLODUWRWKH&ISULQWIIXQFWLRQ
7KHPFGYDOXHXVHVWKHÀOHGHVFULSWRUVFUHDWHGE\WKHIRSHQEXLOWLQ9HULORJ+'/V\VWHPWDVN7KHYDOXHRIWKHPFG
JHQHUDWHGE\RQHRUPRUHFDOOVWRIRSHQVKDOOEHSDVVHGWRWKH3/,DSSOLFDWLRQXVLQJDWDVNIXQFWLRQDUJXPHQW
7KHIRUPDWFRQWUROVWULQJXVHVWKHVDPHIRUPDWWLQJFRQWUROVDVWKH&SULQWIIXQFWLRQIRUH[DPSOHG
7KHPD[LPXPQXPEHURIDUJXPHQWVWKDWFDQEHXVHGLQWKHIRUPDWFRQWUROVWULQJLV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
LRBSULQWI
LRBSULQWI
6\QRSVLV
3ULQWDIRUPDWWHGPHVVDJHWRWKHVWDQGDUGRXWSXWRIDSURGXFWDQGWRWKHORJÀOHRIDSURGXFW
6\QWD[
LRBSULQWIIRUPDWDUJDUJ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
TXRWHGVWULQJRU
FKDU
IRUPDW
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
WKDWFRQWUROVWKHPHVVDJHWREHZULWWHQ
DUJDUJ
WRDUJXPHQWVXVHGLQWKHIRUPDWFRQWUROVWULQJWKH
W\SHRIHDFKDUJXPHQWVKRXOGEHFRQVLVWHQWZLWKKRZLWLV
XVHGLQWKHIRUPDWVWULQJ
8VHLRBPFGSULQWIWRZULWHDIRUPDWWHGPHVVDJHWRRQHRUPRUHRSHQÀOHV
8VHWIBPHVVDJHWIBHUURURUWIBZDUQLQJWRZULWHHUURURUZDUQLQJPHVVDJHV
7KH 7) URXWLQH LRBSULQWI VKDOO ZULWH D IRUPDWWHG PHVVDJH DV WH[W RXWSXW 7KH IXQFWLRQDOLW\ LV VLPLODU WR WKH &
SULQWI IXQFWLRQ +RZHYHU LRBSULQWI GLIIHUV IURP SULQWI EHFDXVH LW HQVXUHV WKH PHVVDJH LV ZULWWHQ WR ERWK WKH
VWDQGDUGRXWSXWWH[WZLQGRZRIWKHSURGXFWDQGWKHRXWSXWORJÀOHRIWKHSURGXFW
7KHIRUPDWFRQWUROVWULQJXVHVWKHVDPHIRUPDWWLQJFRQWUROVDVWKH&SULQWIIXQFWLRQIRUH[DPSOHG
7KHPD[LPXPQXPEHURIDUJXPHQWVWKDWFDQEHXVHGLQWKHIRUPDWFRQWUROVWULQJLV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
PFBVFDQBSOXVDUJV
PFBVFDQBSOXVDUJV
6\QRSVLV
6FDQVRIWZDUHSURGXFWLQYRFDWLRQFRPPDQGOLQHIRUSOXVRSWLRQV
6\QWD[
PFBVFDQBSOXVDUJVVWDUWDUJ
7\SH
5HWXUQV
$UJXPHQWV
FKDU
'HVFULSWLRQ
3RLQWHUWRDVWULQJZLWKWKHUHVXOWRIWKHVHDUFK
7\SH
1DPH
'HVFULSWLRQ
TXRWHGVWULQJRU
FKDU
VWDUWDUJ
$TXRWHGVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJZLWKWKHÀUVW
SDUWRIWKHLQYRFDWLRQRSWLRQWRVHDUFKIRU
7KH7)URXWLQHPFBVFDQBSOXVDUJVVKDOOVFDQDOOVRIWZDUHSURGXFWLQYRFDWLRQFRPPDQGRSWLRQVDQGPDWFKDJLYHQ
VWULQJWRDSOXVDUJXPHQW7KHPDWFKLVFDVHVHQVLWLYH
7KHURXWLQHPFBVFDQBSOXVDUJVVKDOO
³ 5HWXUQQXOOLIVWDUWDUJLVQRWIRXQG
³ 5HWXUQWKHUHPDLQLQJSDUWRIFRPPDQGDUJXPHQWLI VWDUWDUJLVIRXQGHJLIWKHLQYRFDWLRQRSWLRQVWULQJLV
´VL]µDQGVWDUWDUJLV´VL]µWKHQ´µLVUHWXUQHG
³ 5HWXUQDSRLQWHUWRD&VWULQJZLWKDQXOOWHUPLQDWRULIWKHUHLVQRUHPDLQLQJSDUWRIDIRXQGSOXVDUJXPHQW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBDGGBORQJ
WIBDGGBORQJ
6\QRSVLV
$GGWZRELWLQWHJHUV
6\QWD[
WIBDGGBORQJDRIBORZDRIBKLJKORZKLJK
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBORZ
3RLQWHUWROHDVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
DRIBKLJK
3RLQWHUWRPRVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
ORZ
/HDVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
LQW
KLJK
0RVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
8VHWIBVXEWUDFWBORQJWRVXEWUDFWWZRELWLQWHJHUV
8VHWIBPXOWLSO\BORQJWRPXOWLSO\WZRELWLQWHJHUV
8VHWIBGLYLGHBORQJWRGLYLGHWZRELWLQWHJHUV
8VHWIBFRPSDUHBORQJWRFRPSDUHWZRELWLQWHJHUV
7KH7)URXWLQHWIBDGGBORQJVKDOODGGWZRELWYDOXHV$IWHUFDOOLQJWIBDGGBORQJWKHYDULDEOHVXVHGWRSDVVWKH
ÀUVWRSHUDQGVKDOOFRQWDLQWKHUHVXOWVRIWKHDGGLWLRQ)LJXUHVKRZVWKHKLJKDQGORZELWVRIWZRORQJLQWHJHUV
DQGKRZWIBDGGBORQJVKDOODGGWKHP
LQWHJHU LQWHJHULQWHJHU
LQWHJHU
KLJK
ORZ
LQWHJHU
KLJK
ORZ
KLJKELWV
ORZELWV
)LJXUH³$GGLQJZLWKWIBDGGBORQJ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBDV\QFKRIIWIBLDV\QFKRII
WIBDV\QFKRIIWIBLDV\QFKRII
6\QRSVLV
'LVDEOHDV\QFKURQRXVFDOOLQJRIWKHPLVFWIDSSOLFDWLRQ
6\QWD[
WIBDV\QFKRII
WIBLDV\QFKRIILQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBDV\QFKRQRUWIBLDV\QFKRQWRHQDEOHDV\QFKURQRXVFDOOLQJRIWKHPLVFWIDSSOLFDWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBDV\QFKRII DQG WIBLDV\QFKRII VKDOO GLVDEOH IXUWKHU FDOOLQJ RI WKH PLVFWI DSSOLFDWLRQ IRU
UHDVRQBSDUDPYFIRUWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
$V\QFKURQRXVFDOOLQJLVÀUVWHQDEOHGE\WKHURXWLQHVWIBDV\QFKRQRUWIBLDV\QFKRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBDV\QFKRQWIBLDV\QFKRQ
WIBDV\QFKRQWIBLDV\QFKRQ
6\QRSVLV
(QDEOHDV\QFKURQRXVFDOOLQJRIWKHPLVFWIDSSOLFDWLRQIRUSDUDPHWHUYDOXHFKDQJHV
6\QWD[
WIBDV\QFKRQ
WIBLDV\QFKRQLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBDV\QFKRIIRUWIBLDV\QFKRIIWRGLVDEOHDV\QFKURQRXVFDOOLQJRIWKHPLVFWIDSSOLFDWLRQ
8VHWIBJHWSFKDQJHRUWIBLJHWSFKDQJHWRJHWWKHLQGH[QXPEHURIWKHSDUDPHWHUWKDWFKDQJHG
8VHWIBFRS\SYFBÁDJRUWIBLFRS\SYFBÁDJWRFRS\SYFÁDJV
8VHWIBPRYHSYFBÁDJRUWIBLPRYHSYFBÁDJWRPRYHDSYFÁDJWRWKHVDYHGSYFÁDJ
8VHWIBWHVWSYFBÁDJRUWIBLWHVWSYFBÁDJWRJHWWKHYDOXHRIDVDYHGSYFÁDJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBDV\QFKRQDQGWIBLDV\QFKRQVKDOOHQDEOHDPLVFWIXVHUDSSOLFDWLRQWREHFDOOHGDV\QFKURQRXVO\
ZKHQHYHUDSDUDPHWHUYDOXHFKDQJHVLQWKHFXUUHQWLQVWDQFHRULQDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQ$IWHUHQDEOLQJWKHURXWLQHVSHFLÀHGE\PLVFWILQWKH3/,LQWHUIDFHPHFKDQLVPVKDOOEHFDOOHGZLWKDUHDVRQ
RIUHDVRQBSDUDPYFHDFKWLPHDQ\WDVNIXQFWLRQSDUDPHWHUFKDQJHVYDOXHRUUHDVRQBSDUDPGUFHDFKWLPHDQ\WDVN
IXQFWLRQSDUDPHWHUFKDQJHVVWUHQJWK7KHSDUDPHWHULQGH[QXPEHURIWKHSDUDPHWHUWKDWFKDQJHGYDOXHLVSDVVHGWR
WKHPLVFWIDSSOLFDWLRQDVDWKLUG&DUJXPHQWSDUDPYF
7KHYDOXHFKDQJHFDQEHH[DPLQHGLPPHGLDWHO\RUDVHFRQGFDOOEDFNFDQEHUHTXHVWHGODWHULQWKHVDPHWLPHVWHSDV
GHVFULEHGLQ%\VHWWLQJDVHFRQGFDOOEDFNDWWKHHQGRIWKHWLPHVWHSDQDSSOLFDWLRQFDQSURFHVVDOOSDUDPHWHU
YDOXHFKDQJHVZLWKLQLQDWLPHVWHSDWRQFH7KHURXWLQHV WIBFRS\SYFBÁDJ WIBPRYHSYFBÁDJ WIBWHVWSYFBÁDJ
DQGWIBJHWSFKDQJHFDQEHXVHGWRGHWHUPLQHDOOWKHSDUDPHWHUVWKDWFKDQJHGLQDWLPHVWHS
7DVNIXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWDQGWKHOHIWPRVWSDUDPHWHUVKDOOEHQXPEHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBFOHDUDOOGHOD\VWIBLFOHDUDOOGHOD\V
WIBFOHDUDOOGHOD\VWIBLFOHDUDOOGHOD\V
6\QRSVLV
&OHDUDOOVFKHGXOHGUHDFWLYDWLRQVE\WIBVHWGHOD\RUWIBLVHWGHOD\
6\QWD[
WIBFOHDUDOOGHOD\V
WIBLFOHDUDOOGHOD\VLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVHWGHOD\RUWIBLVHWGHOD\WRVFKHGXOHDUHDFWLYDWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHV WIBFOHDUDOOGHOD\VDQG WIBLFOHDUDOOGHOD\VVKDOOFOHDUDOOUHDFWLYDWLRQGHOD\VZKLFKVKDOOUHPRYH
WKHHIIHFWRIDOOSUHYLRXVWIBVHWGHOD\RU WIBLVHWGHOD\FDOOVIRUWKHFXUUHQWLQVWDQFHRUVSHFLÀFLQVWDQFHRIDXVHU
GHÀQHGV\VWHPWDVNRUIXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBFRPSDUHBORQJ
WIBFRPSDUHBORQJ
6\QRSVLV
&RPSDUHWZRELWLQWHJHUYDOXHV
6\QWD[
WIBFRPSDUHBORQJORZKLJKORZKLJK
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
$QLQWHJHUÁDJLQGLFDWLQJWKHUHVXOWRIWKHFRPSDULVRQ
7\SH
1DPH
'HVFULSWLRQ
LQW
ORZ
/HDVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
KLJK
0RVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
ORZ
/HDVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
LQW
KLJK
0RVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
8VHWIBDGGBORQJWRDGGWZRELWLQWHJHUV
8VHWIBVXEWUDFWBORQJWRVXEWUDFWWZRELWLQWHJHUV
8VHWIBPXOWLSO\BORQJWRPXOWLSO\WZRELWLQWHJHUV
8VHWIBGLYLGHBORQJWRGLYLGHWZRELWLQWHJHUV
7KH7)URXWLQHWIBFRPSDUHBORQJVKDOOFRPSDUHWZRELWLQWHJHUVDQGUHWXUQRQHRIWKHYDOXHVJLYHQLQ7DEOH
7DEOH³5HWXUQYDOXHVIRUWIBFRPSDUHBORQJ
6HFWLRQ
:KHQ
WIBFRPSDUHBORQJVKDOO
UHWXUQ
RSHUDQGRSHUDQG
RSHUDQG RSHUDQG
RSHUDQG!RSHUDQG
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBFRS\SYFBÁDJWIBLFRS\SYFBÁDJ
WIBFRS\SYFBÁDJWIBLFRS\SYFBÁDJ
6\QRSVLV
&RS\SDUDPHWHUYDOXHFKDQJHIODJV
6\QWD[
WIBFRS\SYFBIODJQSDUDP
WIBLFRS\SYFBIODJQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHYDOXHRIWKHSYFÁDJ
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHURU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBDV\QFKRQRUWIBLDV\QFKRQWRHQDEOHSYFÁDJV
8VHWIBJHWSFKDQJHRUWIBLJHWSFKDQJHWRJHWWKHLQGH[QXPEHURIWKHSDUDPHWHUWKDWFKDQJHG
8VHWIBPRYHSYFBÁDJRUWIBLPRYHSYFBÁDJWRPRYHDSYFÁDJWRWKHVDYHGSYFÁDJ
8VHWIBWHVWSYFBÁDJRUWIBLWHVWSYFBÁDJWRJHWWKHYDOXHRIDVDYHGSYFÁDJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBFRS\SYFBÁDJDQGWIBLFRS\SYFBÁDJVKDOOFRS\WKHFXUUHQWSYFÁDJWRWKHVDYHGSYFÁDJDQG
UHWXUQWKHYDOXHRIWKHÁDJWKDWZDVFRSLHG7KHDUJXPHQWQSDUDPLVWKHLQGH[QXPEHURIDSDUDPHWHULQWKHFXUUHQW
LQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7DVNIXQFWLRQSDUDPHWHULQGH[QXPEHULQJ
VKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU,IQSDUDPLVWKHQDOOSDUDPHWHUSYF
ÁDJVVKDOOEHFRSLHGDQGWKHORJLFDO25RIDOOVDYHGÁDJVUHWXUQHG
3DUDPHWHU9DOXH&KDQJHSYFÁDJVVKDOOEHXVHGWRLQGLFDWHZKHWKHUDSDUWLFXODUXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHUKDVFKDQJHGYDOXH(DFKSDUDPHWHUVKDOOKDYHWZRSYFÁDJVDFXUUHQWSYFÁDJZKLFKVKDOOEHVHWE\D
VRIWZDUHSURGXFWZKHQWKHFKDQJHRFFXUVDQGDVDYHGSYFÁDJZKLFKVKDOOEHFRQWUROOHGE\WKHXVHU
127(³39&ÁDJVVKDOOQRWEHVHWE\WKHVRIWZDUHSURGXFWXQWLOWIBDV\QFKRQRUWIBLDV\QFKRQKDVEHHQFDOOHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBGLYLGHBORQJ
WIBGLYLGHBORQJ
6\QRSVLV
'LYLGHWZRELWLQWHJHUV
6\QWD[
WIBGLYLGHBORQJDRIBORZDRIBKLJKORZKLJK
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBORZ
3RLQWHUWROHDVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
DRIBKLJK
3RLQWHUWRPRVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
ORZ
/HDVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
LQW
KLJK
0RVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
8VHWIBDGGBORQJWRDGGWZRELWLQWHJHUV
8VHWIBVXEWUDFWBORQJWRVXEWUDFWWZRELWLQWHJHUV
8VHWIBPXOWLSO\BORQJWRPXOWLSO\WZRELWLQWHJHUV
8VHWIBFRPSDUHBORQJWRFRPSDUHWZRELWLQWHJHUV
7KH7)URXWLQHWIBGLYLGHBORQJVKDOOGLYLGHWZRELWYDOXHV$IWHUFDOOLQJWIBGLYLGHBORQJWKHYDULDEOHVXVHGWR
SDVVWKHÀUVWRSHUDQGVKDOOFRQWDLQWKHUHVXOWRIWKHGLYLVLRQ
7KHRSHUDQGVVKDOOEHDVVXPHGWREHLQWZR·VFRPSOHPHQWIRUP)LJXUHVKRZVWKHKLJKDQGORZELWVRI
WZRORQJLQWHJHUVDQGKRZWIBGLYLGHBORQJVKDOOGLYLGHWKHP
LQWHJHU LQWHJHULQWHJHU
LQWHJHU
KLJK
ORZ
LQWHJHU
KLJK
ORZ
KLJKELWV
ORZELWV
)LJXUH³'LYLGLQJZLWKWIBGLYLGHBORQJ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBGRÀQLVK
WIBGRÀQLVK
6\QRSVLV
([LWVRIWZDUHSURGXFWH[HFXWLRQ
6\QWD[
WIBGRILQLVK
7\SH
5HWXUQV
YRLG
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
1DPH
'HVFULSWLRQ
1RQH
8VHWIBGRVWRSWRFDXVHDSURGXFWWRHQWHULQWHUDFWLYHPRGH
7KH7)URXWLQHWIBGRÀQLVKVKDOOÀQLVKWKHVRIWZDUHSURGXFWH[HFXWLRQWKHVDPHDVLIDÀQLVKEXLOWLQV\VWHPWDVN
KDGEHHQH[HFXWHGLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBGRVWRS
WIBGRVWRS
6\QRSVLV
&DXVHVRIWZDUHSURGXFWWRHQWHULQWHUDFWLYHPRGH
6\QWD[
WIBGRVWRS
7\SH
5HWXUQV
YRLG
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
1DPH
'HVFULSWLRQ
1RQH
8VHWIBGRÀQLVKH[LWVRIWZDUHSURGXFWH[HFXWLRQ
7KH7)URXWLQHWIBGRVWRSVKDOOFDXVHDVRIWZDUHSURGXFWWRHQWHULQWRLWVLQWHUDFWLYHPRGHDVLIDVWRSEXLOWLQ
V\VWHPWDVNKDGEHHQH[HFXWHGLQWKH9HULORJ+'/VRXUFHGHVFULSWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBHUURU
WIBHUURU
6\QRSVLV
5HSRUWDQHUURUPHVVDJH
6\QWD[
WIBHUURUIRUPDWDUJDUJ
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
YRLG
7\SH
1DPH
TXRWHGVWULQJRU
FKDU
IRUPDW
DUJDUJ
5HODWHG
URXWLQHV
'HVFULSWLRQ
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
WKDWFRQWUROVWKHPHVVDJHWREHZULWWHQ
2QHWRÀYHDUJXPHQWVXVHGLQWKHIRUPDWFRQWUROVWULQJWKH
W\SHRIHDFKDUJXPHQWVKRXOGEHFRQVLVWHQWZLWKKRZLWLV
XVHGLQWKHIRUPDWVWULQJ
8VHWIBPHVVDJHWRZULWHHUURUPHVVDJHVZLWKDGGLWLRQDOIRUPDWFRQWURO
8VHWIBZDUQLQJWRZULWHDZDUQLQJPHVVDJH
8VHLRBSULQWIRULRBPFGSULQWIWRZULWHDIRUPDWWHGPHVVDJH
7KH7)URXWLQHWIBHUURUVKDOOSURYLGHDQHUURUUHSRUWLQJPHFKDQLVPFRPSDWLEOHZLWKHUURUPHVVDJHVJHQHUDWHGE\
WKHVRIWZDUHSURGXFW
³ 7KHIRUPDWFRQWUROVWULQJXVHVWKHVDPHIRUPDWWLQJFRQWUROVDVWKH&SULQWIIXQFWLRQIRUH[DPSOHG
³ 7KHPD[LPXPQXPEHURIDUJXPHQWVWKDWFDQEHXVHGLQWKHIRUPDWFRQWUROVWULQJLVÀYH
³ 7KHORFDWLRQLQIRUPDWLRQÀOHQDPHDQGOLQHQXPEHURIWKHFXUUHQWLQVWDQFHRIWKHXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQLVDSSHQGHGWRWKHPHVVDJHXVLQJDIRUPDWFRPSDWLEOHZLWKHUURUPHVVDJHVJHQHUDWHGE\WKHVRIWZDUH
SURGXFW
³ 7KHPHVVDJHLVZULWWHQWRERWKWKHVWDQGDUGRXWSXWWH[WZLQGRZDQGWKHRXWSXWORJÀOHRIWKHSURGXFW
,I WIBHUURU LV FDOOHG E\ WKH FKHFNWI DSSOLFDWLRQ DVVRFLDWHG ZLWK WKH XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ WKH
IROORZLQJUXOHVVKDOODSSO\
³ ,IWKHFKHFNWIDSSOLFDWLRQLVFDOOHGZKHQWKH9HULORJ+'/VRXUFHFRGHZDVEHLQJSDUVHGRUFRPSLOHGSDUVLQJ
RUFRPSLODWLRQVKDOOEHDERUWHGDIWHUWKHHUURULVUHSRUWHG
³ ,IWKHFKHFNWIDSSOLFDWLRQLVFDOOHGZKHQWKHXVHUGHÀQHGWDVNRUIXQFWLRQZDVLQYRNHGRQWKHLQWHUDFWLYHFRP
PDQGOLQHWKHLQWHUDFWLYHFRPPDQGVKDOOEHDERUWHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBHYDOXDWHSWIBLHYDOXDWHS
WIBHYDOXDWHSWIBLHYDOXDWHS
6\QRSVLV
(YDOXDWHDSDUDPHWHUH[SUHVVLRQ
6\QWD[
WIBHYDOXDWHSQSDUDP
WIBLHYDOXDWHSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBH[SULQIRRUWIBLH[SULQIRWRJHWDSRLQWHUWRWKHVBWIH[SULQIRVWUXFWXUH
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBHYDOXDWHSDQGWIBLHYDOXDWHSVKDOOHYDOXDWHWKHFXUUHQWYDOXHRIWKHVSHFLÀHGSDUDPHWHULQWKH
FXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KHFXUUHQWYDOXHVKDOOEHUHWXUQHGWR
WKH YDOXH FHOO LQ WKH WIBH[SULQIR VWUXFWXUH UHWXUQHG IURP D SUHYLRXV FDOO WR WKH URXWLQH WIBH[SULQIR RU
WIBLH[SULQIR7KLVFDQEHDPRUHHIÀFLHQWZD\WRREWDLQWKHFXUUHQWYDOXHRIDQH[SUHVVLRQWKDQWRFDOOWIBH[SULQIR
RUWIBLH[SULQIRUHSHDWHGO\
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBH[SULQIRWIBLH[SULQIR
WIBH[SULQIRWIBLH[SULQIR
6\QRSVLV
*HWSDUDPHWHUH[SUHVVLRQLQIRUPDWLRQ
6\QWD[
WIBH[SULQIRQSDUDPH[SULQIRBS
WIBLH[SULQIRQSDUDPH[SULQIRBSLQVWDQFHBS
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
7\SH
'HVFULSWLRQ
VWUXFWWBWIH[SULQIR
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJWKHYDOXHRIWKHVHFRQGDUJXPHQWLIVXFFHVVIXO
LIDQHUURURFFXUUHG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQSDUDPHWHU
VWUXFWWBWIH[SULQIR
H[SULQIRBS
3RLQWHUWRDYDULDEOHGHFODUHGDVD
WBWIH[SULQIRVWUXFWXUHW\SH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHG
V\VWHPWDVNRUIXQFWLRQ
8VHWIBQRGHLQIRRUWIBLQRGHLQIRIRUDGGLWLRQDOLQIRUPDWLRQRQZULWDEOHSDUDPHWHUV
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBH[SULQIRDQGWIBLH[SULQIRVKDOOUHWXUQDSRLQWHUWRDVWUXFWXUHFRQWDLQLQJJHQHUDOLQIRUPDWLRQ
DERXWWKHVSHFLÀHGSDUDPHWHULQWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KHLQIRUPDWLRQVKDOOEHVWRUHGLQWKH&VWUXFWXUHVBWIH[SULQIR
0HPRU\ VSDFH VKDOO ÀUVW EH DOORFDWHG WR KROG WKH LQIRUPDWLRQ EHIRUH FDOOLQJ WIBH[SULQIR RU WIBLH[SULQIR )RU
H[DPSOH
^
VBWIH[SULQIRLQIR
WIBH[SULQIRQLQIR
`
GHFODUHDYDULDEOHRIWKHVWUXFWXUHW\SH
SDVVWIBH[SULQIRDSRLQWHUWRWKHYDULDEOH
7KLVURXWLQHVKDOOUHWXUQWKHVHFRQGDUJXPHQWZKLFKLVWKHSRLQWHUWRWKHLQIRUPDWLRQVWUXFWXUH,IQSDUDPLVRXWRI
UDQJHRULIVRPHRWKHUHUURULVIRXQGWKHQVKDOOEHUHWXUQHG7KHDUJXPHQWQSDUDPVKDOOEHWKHLQGH[QXPEHURID
SDUDPHWHULQDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7DVNIXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIW
WRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHWKHVBWIH[SULQIRVWUXFWXUHLVGHÀQHGLQYHULXVHUKDQGLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBWIH[SULQIR
^
VKRUW
H[SUBW\SH
VKRUW
SDGGLQJ
VWUXFW
WBYHFYDOH[SUBYDOXHBS
GRXEOH
UHDOBYDOXH
FKDU H[SUBVWULQJ
LQW
H[SUBQJURXSV
LQW
H[SUBYHFBVL]H
LQW
H[SUBVLJQ
LQW
H[SUBOKVBVHOHFW
LQW
H[SUBUKVBVHOHFW
`VBWIH[SULQIRSBWIH[SULQIR
)LJXUH³7KHVBWIH[SULQIRVWUXFWXUHGHÀQLWLRQ
7KHH[SUBW\SHRIWKHVBWIH[SULQIRVWUXFWXUHVKDOOLQGLFDWHWKH9HULORJ+'/GDWDW\SHRIWKHSDUDPHWHUDQGLW
VKDOOEHRQHRIWKHSUHGHÀQHGFRQVWDQWVDVJLYHQLQ7DEOHDQGGHÀQHGLQYHULXVHUK
7DEOH³3UHGHÀQHGFRQVWDQWVXVHGZLWKWIBH[SULQIR
3UHGHÀQHGFRQVWDQW
'HVFULSWLRQ
WIBQXOOSDUDP
)RUQXOORUQRQH[LVWHQWSDUDPHWHUV
WIBVWULQJ
)RUVWULQJSDUDPHWHUV
WIBUHDGRQO\
)RULQWHJHUSDUDPHWHUV
WIBUHDGRQO\UHDO
)RUUHDOSDUDPHWHUV
WIBUHDGZULWH
)RULQWHJHUSDUDPHWHUV
WIBUHDGZULWHUHDO
)RUUHDOSDUDPHWHUV
WIBUZELWVHOHFW
%LWVHOHFWSDUDPHWHUV
WIBUZSDUWVHOHFW
3DUWVHOHFWSDUDPHWHUV
WIBUZPHPVHOHFW
0HPRU\VHOHFWSDUDPHWHUV
,I WKH H[SUHVVLRQ W\SH LV WIBUHDGRQO\ WIBUHDGZULWH WIBUZELWVHOHFW WIBUZSDUWVHOHFW RU WIBUZPHPVHOHFW WKH
H[SUBYDOXHBS RI WKH VBWIH[SULQIR VWUXFWXUH VKDOO EH D SRLQWHU WR DQ DUUD\ RI VBYHFYDO VWUXFWXUHV WKDW VKDOO
FRQWDLQWKHUHVXOWDQWYDOXHRIWKHH[SUHVVLRQ7KHVBYHFYDOVWUXFWXUHIRUUHSUHVHQWLQJYHFWRUYDOXHVLVGHÀQHGLQ
YHULXVHUKDQGLVOLVWHGLQ)LJXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
W\SHGHIVWUXFWWBYHFYDO
^
LQW
DYDOELWV
LQW
EYDOELWV
`VBYHFYDOSBYHFYDO
)LJXUH³7KHVBYHFYDOVWUXFWXUHGHÀQLWLRQ
,IWKHQXPEHURIELWVLQWKHYHFWRUGHÀQHGE\WKHH[SUBYHFBVL]HÀHOGRIWKHVBWIH[SULQIRVWUXFWXUHLVOHVVWKDQ
RUHTXDOWRWKHQWKHUHVKDOORQO\EHRQHVBYHFYDOJURXSLQWKHH[SUBYDOXHBSDUUD\)RUELWVWRELWV
WKHUH VKDOO EH WZR JURXSV LQ WKH DUUD\ DQG VR RQ 7KH QXPEHU RI JURXSV VKDOO DOVR EH JLYHQ E\ WKH YDOXH RI WKH
H[SUBQJURXSV ÀHOG RI WKH VBWIH[SULQIR VWUXFWXUH 7KH FRPSRQHQWV DYDOELWV DQG EYDOELWV RI WKH VBYHFYDO
VWUXFWXUHVKDOOKROGWKHELWSDWWHUQVPDNLQJXSWKHYDOXHRIWKHSDUDPHWHU7KHOVELQWKHYDOXHVKDOOEHUHSUHVHQWHGE\
WKHOVE·VLQWKHDYDOELWVDQGEYDOELWVFRPSRQHQWVDQGVRRQ7KHELWFRGLQJVKDOOEHDVJLYHQLQ7DEOH
7DEOH³DYDOELWVEYDOELWVHQFRGLQJ
DYDOEYDO
/RJLFYDOXH
+LJKLPSHGDQFH
8QNQRZQ
,IWKHH[SUHVVLRQW\SHLVWIBUHDGRQO\UHDORUWIBUHDGZULWHUHDOWKHUHDOBYDOXHÀHOGRIWKHVBWIH[SULQIRVWUXFWXUH
VKDOOFRQWDLQWKHYDOXH
,IWKHH[SUHVVLRQLVRIW\SHWIBVWULQJWKHH[SUBVWULQJÀHOGRIWKHVBWIH[SULQIRVWUXFWXUHVKDOOSRLQWWRWKHVWULQJ
,I WKH H[SUHVVLRQ W\SH LV WIBUHDGRQO\ WIBUHDGZULWH WIBUZELWVHOHFW WIBUZSDUWVHOHFW RU WIBUZPHPVHOHFW WKH
H[SUBQJURXSV RI WKH VBWIH[SULQIR VWUXFWXUH VKDOO LQGLFDWH WKH QXPEHU RI JURXSV IRU WKH SDUDPHWHU H[SUHVVLRQ
YDOXH DQG GHWHUPLQH WKH DUUD\ VL]H RI WKH H[SUBYDOXHBS YDOXH VWUXFWXUH SRLQWHU ,I WKH H[SUHVVLRQ W\SH LV
WIBUHDGRQO\UHDORUWIBUHDGZULWHUHDOH[SUBQJURXSVVKDOOEH
,I WKH H[SUHVVLRQ W\SH LV WIBUHDGRQO\ WIBUHDGZULWH WIBUZELWVHOHFW WIBUZSDUWVHOHFW RU WIBUZPHPVHOHFW WKH
H[SUBYHFBVL]H ÀHOG RI WKH VBWIH[SULQIR VWUXFWXUH VKDOO LQGLFDWH WKH WRWDO QXPEHU RI ELWV LQ WKH DUUD\ RI
H[SUBYDOXHBSYDOXHVWUXFWXUHV,IWKHH[SUHVVLRQW\SHLVWIBUHDGRQO\UHDORUWIBUHDGZULWHUHDOH[SUBYHFBVL]HVKDOO
EH
7KHH[SUBVLJQÀHOGRIWKHVBWIH[SULQIRVWUXFWXUHVKDOOLQGLFDWHWKHVLJQW\SHRIWKHH[SUHVVLRQ,WVKDOOEHIRU
XQVLJQHGRUQRQ]HURIRUVLJQHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWFVWULQJSWIBLJHWFVWULQJS
WIBJHWFVWULQJSWIBLJHWFVWULQJS
6\QRSVLV
*HWSDUDPHWHUYDOXHDVDVWULQJ
6\QWD[
WIBJHWFVWULQJSQSDUDP
WIBLJHWFVWULQJSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
FKDU
3RLQWHUWRDFKDUDFWHUVWULQJ
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWSRUWIBLJHWSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWORQJSRUWIBLJHWORQJSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWUHDOSRUWIBLJHWUHDOSWRJHWDSDUDPHWHUYDOXHDVDGRXEOH
8VHWIBVWUJHWSRUWIBLVWUJHWSWRJHWDSDUDPHWHUYDOXHDVDIRUPDWWHGVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWFVWULQJSDQGWIBLJHWFVWULQJSVKDOOUHWXUQDFKDUDFWHUVWULQJUHSUHVHQWLQJWKHYDOXHRIWKH
VSHFLÀHGSDUDPHWHULQWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ,IWKH
SDUDPHWHU LGHQWLÀHG E\ QSDUDP LV D OLWHUDO VWULQJ D YDULDEOH RU DQ H[SUHVVLRQ WKHQ WIBJHWFVWULQJS RU
WIBLJHWFVWULQJSVKDOOFRQYHUWLWVYDOXHWRD&ODQJXDJH$6&,,VWULQJE\
D
(OLPLQDWLQJOHDGLQJ]HURV
E
&RQYHUWLQJHDFKJURXSRIELWVWRDQ$6&,,FKDUDFWHU
F
$GGLQJD´?µVWULQJWHUPLQDWLRQFKDUDFWHUWRWKHHQG
,IWKHSDUDPHWHULGHQWLÀHGE\QSDUDPLVQXOORULIQSDUDPLVRXWRIUDQJHWKHQDQXOOVKDOOEHUHWXUQHG
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBJHWLQVWDQFH
WIBJHWLQVWDQFH
6\QRSVLV
*HWDSRLQWHUWRWKHFXUUHQWLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
6\QWD[
WIBJHWLQVWDQFH
7\SH
5HWXUQV
FKDU
7\SH
$UJXPHQWV
'HVFULSWLRQ
3RLQWHUWRDV\VWHPWDVNRUIXQFWLRQLQVWDQFH
1DPH
'HVFULSWLRQ
1RQH
7KH7)URXWLQHWIBJHWLQVWDQFHVKDOOUHWXUQDSRLQWHUWKDWLGHQWLÀHVWKHFXUUHQWLQVWDQFHRIWKHXVHUGHÀQHGWDVNRU
IXQFWLRQLQWKH9HULORJ+'/VRXUFHFRGH7KHSRLQWHUUHWXUQHGE\WIBJHWLQVWDQFHFDQEHXVHGODWHULQRWKHU7)
URXWLQHFDOOVWRUHIHUWRWKLVLQVWDQFHRIWKHWDVNRUIXQFWLRQ0DQ\RIWKH7)URXWLQHVDUHLQWZRIRUPV2QHGHDOVZLWK
WKH FXUUHQW WDVN RU IXQFWLRQ LQVWDQFH7KH RWKHU GHDOV ZLWK VRPH RWKHU LQVWDQFH RI WKH WDVN RU IXQFWLRQ ZKHUH WKH
LQVWDQFHSRLQWHUIRUWKHRWKHULQVWDQFHZDVSUHYLRXVO\REWDLQHGXVLQJWIBJHWLQVWDQFHGXULQJDFDOOWRDXVHUURXWLQH
LQLWLDWHGE\WKDWLQVWDQFH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWORQJSWIBLJHWORQJS
WIBJHWORQJSWIBLJHWORQJS
6\QRSVLV
*HWSDUDPHWHUYDOXHDVDELWLQWHJHU
6\QWD[
WIBJHWORQJSDRIBKLJKYDOXHQSDUDP
WIBLJHWORQJSDRIBKLJKYDOXHQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIWKHSDUDPHWHUYDOXH
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBKLJKYDOXH
3RLQWHUWRPRVWVLJQLÀFDQWOHIWPRVWELWVRIWKHSDUDPH
WHUYDOXH
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWSRUWIBLJHWSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWUHDOSRUWIBLJHWUHDOSWRJHWDSDUDPHWHUYDOXHDVDGRXEOH
8VHWIBJHWFVWULQJSRUWIBLJHWFVWULQJSWRJHWDSDUDPHWHUYDOXHDVDVWULQJ
8VHWIBVWUJHWSRUWIBLVWUJHWSWRJHWDSDUDPHWHUYDOXHDVDIRUPDWWHGVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWORQJSDQGWIBLJHWORQJSVKDOOUHWXUQDELWLQWHJHUYDOXHIRUWKHSDUDPHWHUVSHFLÀHGE\
QSDUDPLQWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ,IQSDUDPLVRXWRI
UDQJHRUWKHSDUDPHWHULVQXOOWKHQVKDOOEHUHWXUQHG
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBJHWORQJWLPHWIBLJHWORQJWLPH
WIBJHWORQJWLPHWIBLJHWORQJWLPH
6\QRSVLV
*HWFXUUHQWVLPXODWLRQWLPHDVDELWLQWHJHU
6\QWD[
WIBJHWORQJWLPHDRIBKLJKWLPH
WIBLJHWORQJWLPHDRIBKLJKWLPHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIVLPXODWLRQWLPH
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBKLJKWLPH
3RLQWHUWRPRVWVLJQLÀFDQWOHIWPRVWELWVRIVLPXODWLRQ
WLPH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWWLPHWRJHWWKHVLPXODWLRQWLPHDVDELWLQWHJHU
8VHWIBVWUJHWWLPHWRJHWWKHVLPXODWLRQWLPHDVDFKDUDFWHUVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWORQJWLPHDQGWIBLJHWORQJWLPHVKDOOUHWXUQWKHVLPXODWLRQWLPHDVDELWLQWHJHU7KHKLJK
ELWV RI VLPXODWLRQ WLPH VKDOO EH DVVLJQHG WR WKH DRIBKLJKWLPH DUJXPHQW DQG WKH ORZ ELWV RI WLPH VKDOO EH
UHWXUQHG
7LPHVKDOOEHH[SUHVVHGLQWKHWLPHVFDOHXQLWRIWKHPRGXOHFRQWDLQLQJWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRI
WKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWQH[WORQJWLPH
WIBJHWQH[WORQJWLPH
6\QRSVLV
*HWQH[WWLPHDWZKLFKDVLPXODWLRQHYHQWLVVFKHGXOHG
6\QWD[
WIBJHWQH[WORQJWLPHDRIBORZWLPHDRIBKLJKWLPH
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
LQW
,QWHJHUYDOXHUHSUHVHQWLQJWKHPHDQLQJRIWKHQH[WHYHQWWLPHREWDLQHG
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBORZWLPH
3RLQWHUWROHDVWVLJQLÀFDQWULJKWPRVWELWVRIVLPXODWLRQ
WLPH
LQW
DRIBKLJKWLPH
3RLQWHUWRPRVWVLJQLÀFDQWOHIWPRVWELWVRIVLPXODWLRQ
WLPH
7KH7)URXWLQHWIBJHWQH[WORQJWLPHVKDOODVVLJQWKHELWWLPHRIWKHQH[WVLPXODWLRQHYHQWWRDRIBORZWLPHDQG
DRIBKLJKWLPHDQGLWVKDOOUHWXUQDQLQWHJHUYDOXHWKDWLQGLFDWHVWKHPHDQLQJRIWKHWLPHDVVLJQHG7KHWLPHVKDOO
H[SUHVVHGLQWKHWLPHVFDOHXQLWVRIWKHPRGXOHFRQWDLQLQJWKHFXUUHQWXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQLQVWDQFH
7KHWIBJHWQH[WORQJWLPHURXWLQHVKDOORQO\UHWXUQWKHWLPHIRUWKHQH[WVLPXODWLRQHYHQWZKHQLWLVFDOOHGLQDUHDG
RQO\V\QFKURQL]HPRGH$UHDGRQO\V\QFKURQL]HPRGHRFFXUVZKHQWKHPLVFWIXVHUDSSOLFDWLRQKDVEHHQFDOOHGZLWK
UHDVRQBURV\QFK,IWIBJHWQH[WORQJWLPHLVQRWFDOOHGLQUHDGRQO\V\QFKURQL]HPRGHWKHQWKHFXUUHQWVLPXODWLRQ
WLPHVKDOOEHDVVLJQHG
7DEOHVXPPDUL]HVWKHIXQFWLRQVRIWIBJHWQH[WORQJWLPH
7DEOH³5HWXUQYDOXHVIRUWIBJHWQH[WORQJWLPH
:KHQ
WIBJHWQH[WORQJWLPH
VKDOOUHWXUQ
WIBJHWQH[WORQJWLPH
VKDOODVVLJQWRDRIBORZWLPH
DQGDRIBKLJKWLPH
WIBJHWQH[WORQJWLPHZDVFDOOHGIURPD
PLVFWIDSSOLFDWLRQWKDWZDVFDOOHGZLWK
UHDVRQBURV\QFK
7KHQH[WVLPXODWLRQWLPHIRU
ZKLFKDQHYHQWLVVFKHGXOHG
7KHUHDUHQRPRUHIXWXUHHYHQWVVFKHG
XOHG
WIBJHWQH[WORQJWLPHZDVQRWFDOOHG
IURPDPLVFWIDSSOLFDWLRQWKDWZDVFDOOHG
ZLWKUHDVRQBURV\QFK
7KHFXUUHQWVLPXODWLRQWLPH
127(³&DVHVKDOOWDNHSUHFHGHQFHRYHUFDVH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBJHWSWIBLJHWS
WIBJHWSWIBLJHWS
6\QRSVLV
*HWDSDUDPHWHUYDOXHDVDQLQWHJHURUFKDUDFWHUVWULQJSRLQWHU
6\QWD[
WIBJHWSQSDUDP
WIBLJHWSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
,QWHJHUYDOXHRIDSDUDPHWHURUFKDUDFWHUVWULQJSRLQWHURISDUDPHWHUVWULQJYDOXH
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWORQJSRUWIBLJHWORQJSWR*HWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWUHDOSRUWIBLJHWUHDOSWRJHWDSDUDPHWHUYDOXHDVDGRXEOH
8VHWIBJHWFVWULQJSRUWIBLJHWFVWULQJSWRJHWDSDUDPHWHUYDOXHDVDVWULQJ
8VHWIBVWUJHWSRUWIBLVWUJHWSWRJHWDSDUDPHWHUYDOXHDVDIRUPDWWHGVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7) URXWLQHV WIBJHWS DQG WIBLJHWS VKDOO UHWXUQ D YDOXH RI WKH SDUDPHWHU VSHFLÀHG E\ QSDUDP LQ WKH FXUUHQW
LQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ,IWKHYDOXHRIWKHSDUDPHWHULVDQLQWHJHURU
DUHDOQXPEHUWKHURXWLQHVVKDOOUHWXUQDQLQWHJHUYDOXH,IWKHSDUDPHWHULVDOLWHUDOVWULQJWKHQWKHURXWLQHVVKDOO
UHWXUQ D SRLQWHU WR D ´&µ W\SH VWULQJ D VWULQJ WHUPLQDWHG E\ D ´?µ FKDUDFWHU ,I QSDUDP LV RXW RI UDQJH RU WKH
SDUDPHWHULVQXOOWKHQVKDOOEHUHWXUQHG
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
7KHURXWLQHVWIBJHWSDQGWIBJHWUHDOSGLIIHULQWKHYDOXHUHWXUQHGDVVKRZQE\WKHIROORZLQJH[DPSOH
,IWKHIRXUWKSDUDPHWHULQWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQKDVDYDOXHRIDUHDOYDOXHWKHQ
LQWLYDOXH WIBJHWS
ZRXOGVHWLYDOXHWRZKHUHDV
GRXEOHGYDOXH WIBJHWUHDOS
ZRXOGVHWGYDOXHWR
,QWKHÀUVWH[DPSOHQRWHWKDWWKHLQWFRQYHUVLRQURXQGVRIIWKHYDOXHRIWRUDWKHUWKDQWUXQFDWLQJLWWR,QWKH
VHFRQGH[DPSOHQRWHWKDWWKHUHDOYDOXHKDVWREHGHFODUHGDVD´GRXEOHµQRWDVD´ÁRDWµ5RXQGLQJLVSHUIRUPHG
IROORZLQJWKH9HULORJ+'/UXOHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWSFKDQJHWIBLJHWSFKDQJH
WIBJHWSFKDQJHWIBLJHWSFKDQJH
6\QRSVLV
*HWWKHLQGH[QXPEHURIWKHQH[WSDUDPHWHUWKDWFKDQJHGYDOXH
6\QWD[
WIBJHWSFKDQJHQSDUDP
WIBLJHWSFKDQJHQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
,QGH[QXPEHURIWKHSDUDPHWHUWKDWFKDQJHG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBDV\QFKRQRUWIBLDV\QFKRQWRHQDEOHSYFÁDJV
8VHWIBLPRYHSYFBÁDJWRVDYHSYFÁDJVEHIRUHFDOOLQJWIBJHWSFKDQJH
8VHWIBFRS\SYFBÁDJRUWIBLFRS\SYFBÁDJWRFRS\SYFÁDJV
8VHWIBWHVWSYFBÁDJRUWIBLWHVWSYFBÁDJWRJHWWKHYDOXHRIDVDYHGSYFÁDJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWSFKDQJHDQGWIBLJHWSFKDQJHVKDOOUHWXUQWKHQXPEHURIWKHQH[WSDUDPHWHUZLWKDQXPEHU
JUHDWHUWKDQQSDUDPWKDWFKDQJHGYDOXHIRUWKHFXUUHQWLQVWDQFHRUIRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ7KHQSDUDPDUJXPHQWVKDOOEHWKHÀUVWWLPHWKLVURXWLQHLVFDOOHGZLWKLQDJLYHQXVHUURXWLQHLQYRFDWLRQ
7KHURXWLQHVVKDOOUHWXUQWKHSDUDPHWHUQXPEHULIWKHUHLVDFKDQJHLQDSDUDPHWHUZLWKDQXPEHUJUHDWHUWKDQQSDUDP
DQGWKH\VKDOOUHWXUQLIWKHUHDUHQRFKDQJHVLQSDUDPHWHUVJUHDWHUWKDQQSDUDPRULIDQHUURULVGHWHFWHG7KHURXWLQH
VKDOOXVHWKHVDYHGSYFÁDJVVRLWLVQHFHVVDU\WRH[HFXWHWIBPRYHSYFBÁDJSULRUWRFDOOLQJWKHURXWLQH
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
39&ÁDJVVKDOOLQGLFDWHZKHWKHUDSDUWLFXODUXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQSDUDPHWHUKDVFKDQJHGYDOXH(DFK
SDUDPHWHUVKDOOKDYHWZRSYFÁDJVDFXUUHQWSYFÁDJZKLFKVKDOOEHVHWE\DVRIWZDUHSURGXFWZKHQWKHFKDQJH
RFFXUVDQGDVDYHGSYFÁDJZKLFKVKDOOEHFRQWUROOHGE\WKHXVHU
127(³39&ÁDJVVKDOOQRWEHVHWE\WKHVRIWZDUHSURGXFWXQWLOWIBDV\QFKRQRUWIBLDV\QFKRQKDVEHHQFDOOHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBJHWUHDOSWIBLJHWUHDOS
WIBJHWUHDOSWIBLJHWUHDOS
6\QRSVLV
*HWDSDUDPHWHUYDOXHDVDGRXEOHSUHFLVLRQYDOXH
6\QWD[
WIBJHWUHDOSQSDUDP
WIBLJHWUHDOSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
GRXEOH
'HVFULSWLRQ
'RXEOHSUHFLVLRQYDOXHRIDSDUDPHWHU
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWSRUWIBLJHWSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWORQJSRUWIBLJHWORQJSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWFVWULQJSRUWIBLJHWFVWULQJSWRJHWDSDUDPHWHUYDOXHDVDVWULQJ
8VHWIBVWUJHWSRUWIBLVWUJHWSWRJHWDSDUDPHWHUYDOXHDVDIRUPDWWHGVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWUHDOSDQGWIBLJHWUHDOSVKDOOUHWXUQDGRXEOHSUHFLVLRQYDOXHRIWKHSDUDPHWHUVSHFLÀHGE\
QSDUDPLQWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ,IQSDUDPLVRXWRI
UDQJHRUWKHSDUDPHWHULVQXOOWKHQVKDOOEHUHWXUQHG
7KHURXWLQHVWIBJHWUHDOSDQGWIBLJHWUHDOSFDQQRWKDQGOHOLWHUDOVWULQJV7KHUHIRUHEHIRUHFDOOLQJWKHVHURXWLQHV
WIBW\SHSRUWIBLW\SHSVKRXOGEHFDOOHGWRFKHFNWKHW\SHRIWKHSDUDPHWHU
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWUHDOWLPHWIBLJHWUHDOWLPH
WIBJHWUHDOWLPHWIBLJHWUHDOWLPH
6\QRSVLV
*HWWKHFXUUHQWVLPXODWLRQWLPHLQGRXEOHSUHFLVLRQIRUPDW
6\QWD[
WIBJHWUHDOWLPH
WIBLJHWUHDOWLPHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
GRXEOH
'HVFULSWLRQ
&XUUHQWVLPXODWLRQWLPH
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWWLPHWRJHWWKHORZHUELWVRIVLPXODWLRQWLPHDVDQLQWHJHU
8VHWIBJHWWLPHWRJHWWKHIXOOELWVRIVLPXODWLRQWLPHDVDQLQWHJHU
8VHWIBVWUJHWWLPHWRJHWVLPXODWLRQWLPHDVDFKDUDFWHUVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWUHDOWLPHDQGWIBLJHWUHDOWLPHVKDOOUHWXUQWKHVLPXODWLRQWLPHDVDUHDOQXPEHULQGRXEOH
SUHFLVLRQIRUPDW
7LPHVKDOOEHH[SUHVVHGLQWKHWLPHVFDOHXQLWRIWKHPRGXOHFRQWDLQLQJWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRID
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBJHWWLPHWIBLJHWWLPH
WIBJHWWLPHWIBLJHWWLPH
6\QRSVLV
*HWWKHFXUUHQWVLPXODWLRQWLPHDVDELWLQWHJHU
6\QWD[
WIBJHWWLPH
WIBLJHWWLPHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
/HDVWVLJQLÀFDQWELWVRIVLPXODWLRQWLPH
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWORQJWLPHWRJHWWKHIXOOELWVRIVLPXODWLRQWLPH
8VHWIBJHWUHDOWLPHWRJHWWKHVLPXODWLRQWLPHDVDGRXEOHSUHFLVLRQUHDOQXPEHU
8VHWIBVWUJHWWLPHWRJHWVLPXODWLRQWLPHDVDFKDUDFWHUVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWWLPHDQGWIBLJHWWLPHVKDOOUHWXUQWKHORZHUELWVRIVLPXODWLRQWLPHDVDQLQWHJHU
7LPHVKDOOEHH[SUHVVHGLQWKHWLPHVFDOHXQLWRIWKHPRGXOHFRQWDLQLQJWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRID
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWWLPHSUHFLVLRQWIBLJHWWLPHSUHFLVLRQ
WIBJHWWLPHSUHFLVLRQWIBLJHWWLPHSUHFLVLRQ
6\QRSVLV
*HWWKHWLPHVFDOHSUHFLVLRQRIDPRGXOHRUDVLPXODWLRQ
6\QWD[
WIBJHWWLPHSUHFLVLRQ
WIBLJHWWLPHSUHFLVLRQLQVWDQFHBS
7\SH
5HWXUQV
LQW
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
$QLQWHJHUYDOXHWKDWUHSUHVHQWVDWLPHSUHFLVLRQ
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQRUQXOOWRUHSUHVHQWWKHVLPXODWLRQ
8VHWIBJHWWLPHXQLWRUWIBLJHWWLPHXQLWWRJHWWKHWLPHVFDOHWLPHXQLWV
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBJHWWLPHSUHFLVLRQDQGWIBLJHWWLPHSUHFLVLRQVKDOOUHWXUQWKHWLPHVFDOHSUHFLVLRQIRUWKHPRGXOH
WKDWFRQWDLQVWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KHWLPHSUHFLVLRQ
LVVHWE\WKHCWLPHVFDOH9HULORJ+'/FRPSLOHUGLUHFWLYHLQHIIHFWZKHQWKHPRGXOHZDVFRPSLOHG7KHURXWLQHV
VKDOOUHWXUQDQLQWHJHUFRGHUHSUHVHQWLQJWKHWLPHSUHFLVLRQDVVKRZQLQ7DEOH
7DEOH³&RGHUHWXUQHGE\WIBJHWWLPHSUHFLVLRQDQGWIBLJHWWLPHSUHFLVLRQ
,QWHJHUFRGHUHWXUQHG
6LPXODWLRQWLPHSUHFLVLRQ
V
V
V
PV
PV
PV
—V
—V
—V
QV
QV
QV
SV
SV
SV
IV
IV
IV
:KHQWIBLJHWWLPHSUHFLVLRQLVFDOOHGZLWKDQXOOLQVWDQFHSRLQWHUWKHURXWLQHVKDOOUHWXUQWKHVLPXODWLRQWLPHXQLW
ZKLFKLVWKHVPDOOHVWWLPHSUHFLVLRQXVHGE\DOOPRGXOHVLQDGHVLJQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBJHWWLPHXQLWWIBLJHWWLPHXQLW
WIBJHWWLPHXQLWWIBLJHWWLPHXQLW
6\QRSVLV
*HWWKHWLPHVFDOHXQLWRIDPRGXOHRUDVLPXODWLRQ
6\QWD[
WIBJHWWLPHXQLW
WIBLJHWWLPHXQLWLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
$QLQWHJHUYDOXHWKDWUHSUHVHQWVDWLPHXQLW
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQRUQXOOWRUHSUHVHQWWKHVLPXODWLRQ
8VHWIBJHWWLPHSUHFLVLRQRUWIBLJHWWLPHSUHFLVLRQWRJHWWKHWLPHVFDOHWLPHSUHFLVLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBJHWWLPHXQLW DQG WIBLJHWWLPHXQLW VKDOO UHWXUQ WKH WLPHVFDOH WLPH XQLWV IRU WKH PRGXOH WKDW
FRQWDLQV WKH FXUUHQW LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7KH WLPH XQLW IRU D
PRGXOHLVVHWE\WKHCWLPHVFDOH9HULORJ+'/FRPSLOHUGLUHFWLYHLQHIIHFWZKHQWKHPRGXOHZDVFRPSLOHG7KH
URXWLQHVVKDOOUHWXUQDQLQWHJHUFRGHUHSUHVHQWLQJWKHWLPHXQLWDVVKRZQLQ7DEOH
7DEOH³&RGHUHWXUQHGE\WIBJHWWLPHXQLWDQGWIBLJHWWLPHXQLW
,QWHJHUFRGHUHWXUQHG
6LPXODWLRQWLPHXQLW
V
V
V
PV
PV
PV
—V
—V
—V
QV
QV
QV
SV
SV
SV
IV
IV
IV
:KHQ WIBLJHWWLPHXQLW LV FDOOHG ZLWK D QXOO LQVWDQFH SRLQWHU WKH URXWLQHV VKDOO UHWXUQ WKH VLPXODWLRQ WLPH XQLW
ZKLFKLVWKHVPDOOHVWWLPHSUHFLVLRQXVHGE\DOOPRGXOHVLQDGHVLJQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBJHWZRUNDUHDWIBLJHWZRUNDUHD
WIBJHWZRUNDUHDWIBLJHWZRUNDUHD
6\QRSVLV
*HWZRUNDUHDSRLQWHU
6\QWD[
WIBJHWZRUNDUHD
WIBLJHWZRUNDUHDLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDZRUNDUHDVKDUHGE\DOOURXWLQHVIRUDVSHFLÀFWDVNIXQFWLRQLQVWDQFH
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVHWZRUNDUHDRUWIBLVHWZRUNDUHDWRSXWDYDOXHLQWRWKHZRUNDUHDSRLQWHU
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBJHWZRUNDUHD DQG WIBLJHWZRUNDUHD VKDOO UHWXUQ WKH ZRUN DUHD SRLQWHU YDOXH RI WKH FXUUHQW
LQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KHYDOXHRIWKHZRUNDUHDSRLQWHUVKDOOEH
SODFHGWKHUHE\DSUHYLRXVFDOOWRWKHURXWLQHWIBVHWZRUNDUHDRUWIBLVHWZRUNDUHD7KHVHURXWLQHVFDQEHXVHGDVD
PHDQVIRUWZRXVHUDSSOLFDWLRQVWRVKDUHLQIRUPDWLRQ)RUH[DPSOHDFKHFNWIXVHUDSSOLFDWLRQPLJKWRSHQDÀOHDQG
WKHQSODFHWKHÀOHSRLQWHULQWRWKHZRUNDUHDXVLQJWIBVHWZRUNDUHD/DWHUWKHFDOOWIXVHUDSSOLFDWLRQFDQUHWULHYHWKH
ÀOHSRLQWHUXVLQJWIBJHWZRUNDUHD
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBORQJBWRBUHDO
WIBORQJBWRBUHDO
6\QRSVLV
&RQYHUWDORQJLQWHJHUWRDUHDOQXPEHU
6\QWD[
WIBORQJBWRBUHDOORZKLJKDRIBUHDO
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
ORZ
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIDELWLQWHJHU
LQW
KLJK
0RVWVLJQLÀFDQWOHIWPRVWELWVRIDELWLQWHJHU
GRXEOH
DRIBUHDO
3RLQWHUWRDGRXEOHSUHFLVLRQYDULDEOH
8VHWIBUHDOBWRBORQJWRFRQYHUWDUHDOQXPEHUWRDELWLQWHJHU
8VHWIBORQJWLPHBWRVWUWRFRQYHUWDORQJLQWHJHUWRDFKDUDFWHUVWULQJ
7KH 7) URXWLQH WIBORQJBWRBUHDO VKDOO FRQYHUW D ELW ORQJ LQWHJHU WR D UHDO GRXEOHSUHFLVLRQ ÁRDWLQJSRLQW
QXPEHU7KHYDULDEOHSRLQWHGWRE\DRIBUHDOVKDOOFRQWDLQWKHFRQYHUWHGQXPEHUXSRQUHWXUQIURPWKLVURXWLQH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBORQJWLPHBWRVWU
WIBORQJWLPHBWRVWU
6\QRSVLV
&RQYHUWELWLQWHJHUWLPHYDOXHWRDFKDUDFWHUVWULQJ
6\QWD[
WIBORQJWLPHBWRVWUORZWLPHKLJKWLPH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDFKDUDFWHUVWULQJUHSUHVHQWLQJWKHVLPXODWLRQWLPHYDOXH
7\SH
1DPH
'HVFULSWLRQ
LQW
ORZWLPH
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIVLPXODWLRQWLPH
LQW
KLJKWLPH
0RVWVLJQLÀFDQWOHIWPRVWELWVRIVLPXODWLRQWLPH
8VHWIBJHWORQJWLPHWRJHWWKHFXUUHQWVLPXODWLRQWLPHDVDELWLQWHJHU
7KH7)URXWLQHWIBORQJWLPHBWRVWUVKDOOFRQYHUWDELWLQWHJHUWLPHYDOXHWRDFKDUDFWHUVWULQJ7KHWLPHYDOXH
VKDOOEHXQVLJQHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBPHVVDJH
WIBPHVVDJH
6\QRSVLV
5HSRUWDQHUURURUZDUQLQJPHVVDJHZLWKVRIWZDUHSURGXFWLQWHUUXSWLRQFRQWURO
6\QWD[
WIBPHVVDJHOHYHOIDFLOLW\FRGHPHVVDJHDUJDUJ
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
YRLG
7\SH
1DPH
LQW
OHYHO
$SUHGHÀQHGFRQVWDQWLQGLFDWLQJWKHVHYHULW\OHYHORIWKH
HUURU
TXRWHGVWULQJRU
FKDU
IDFLOLW\
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
XVHGLQWKHRXWSXWPHVVDJH
TXRWHGVWULQJRU
FKDU
FRGH
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
XVHGLQWKHRXWSXWPHVVDJH
TXRWHGVWULQJRU
FKDU
PHVVDJH
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
WKDWFRQWUROVWKHPHVVDJHWREHZULWWHQ
DUJDUJ
5HODWHG
URXWLQHV
'HVFULSWLRQ
2QHWRÀYHDUJXPHQWVXVHGLQWKHIRUPDWFRQWUROVWULQJWKH
W\SHRIHDFKDUJXPHQWVKRXOGEHFRQVLVWHQWZLWKKRZLWLV
XVHGLQWKHPHVVDJHVWULQJ
8VHWIBWH[WWRVWRUHHUURULQIRUPDWLRQSULRUWRFDOOLQJWIBPHVVDJH
8VHWIBHUURUWRUHSRUWHUURUPHVVDJHV
8VHWIBZDUQLQJWRUHSRUWZDUQLQJPHVVDJHV
7KH 7) URXWLQH WIBPHVVDJH VKDOO GLVSOD\ ZDUQLQJ RU HUURU PHVVDJH LQIRUPDWLRQ XVLQJ WKH ZDUQLQJ DQG HUURU
PHVVDJHIRUPDWIRUDVRIWZDUHSURGXFW7KHORFDWLRQLQIRUPDWLRQÀOHQDPHDQGOLQHQXPEHURIWKHFXUUHQWLQVWDQFH
RIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQVKDOOEHDSSHQGHGWRWKHPHVVDJHXVLQJDIRUPDWFRPSDWLEOHZLWKZDUQLQJ
DQGHUURUPHVVDJHVJHQHUDWHGE\WKHVRIWZDUHSURGXFWDQGWKHPHVVDJHVKDOOEHZULWWHQWRERWKWKHVWDQGDUGRXWSXW
WH[WZLQGRZDQGWKHRXWSXWORJÀOHRIWKHSURGXFW
7KH OHYHO ÀHOG VKDOO LQGLFDWH WKH VHYHULW\ OHYHO RI WKH HUURU VSHFLÀHG DV D SUHGHÀQHG FRQVWDQW7KHUH VKDOO EH ÀYH
OHYHOV (55B(5525 (55B6<67(0 (55B,17(51$/ (55B0(66$*( DQG (55B:$51,1* ,I WIBPHVVDJH LV
FDOOHGE\WKHFKHFNWIDSSOLFDWLRQDVVRFLDWHGZLWKWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQWKHIROORZLQJUXOHVVKDOO
DSSO\
³ ,IWKHFKHFNWIDSSOLFDWLRQLVFDOOHGZKHQWKH9HULORJ+'/VRXUFHFRGHZDVEHLQJSDUVHGRUFRPSLOHGDQGWKH
OHYHOLV(55B(5525(55B6<67(0RU(55B,17(51$/WKHQSDUVLQJRUFRPSLODWLRQVKDOOEHDERUWHGDIWHU
DQHUURUPHVVDJHLVUHSRUWHG
³ ,IWKHFKHFNWIDSSOLFDWLRQLVFDOOHGZKHQWKH9HULORJ+'/VRXUFHFRGHZDVEHLQJSDUVHGRUFRPSLOHGDQGWKH
OHYHOLV(55B:$51,1*RU(55B0(66$*(WKHQSDUVLQJRUFRPSLODWLRQVKDOOFRQWLQXHDIWHUDZDUQLQJPHV
VDJHLVUHSRUWHG
³ ,IWKHFKHFNWIDSSOLFDWLRQLVFDOOHGZKHQWKHXVHUGHÀQHGWDVNRUIXQFWLRQZDVLQYRNHGRQWKHLQWHUDFWLYHFRP
PDQGOLQHWKHLQWHUDFWLYHFRPPDQGVKDOOEHDERUWHGDIWHUDZDUQLQJPHVVDJHRUHUURUPHVVDJHLVUHSRUWHG
7KHIDFLOLW\DQGFRGHÀHOGVVKDOOEHVWULQJDUJXPHQWVWKDWFDQEHXVHGLQWKH9HULORJVRIWZDUHSURGXFWPHVVDJHV\QWD[
7KHVHVWULQJVVKDOOEHOHVVWKDQFKDUDFWHUVLQOHQJWK
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHPHVVDJHDUJXPHQWVKDOOEHDXVHUGHÀQHGFRQWUROVWULQJFRQWDLQLQJWKHPHVVDJHWREHGLVSOD\HG7KHFRQWURO
VWULQJVKDOOXVHWKHVDPHIRUPDWWLQJFRQWUROVDVWKH&SULQWIIXQFWLRQIRUH[DPSOHG7KHPHVVDJHVKDOOXVH
XSWRDPD[LPXPRIÀYHYDULDEOHDUJXPHQWV7KHUHVKDOOEHQROLPLWWRWKHOHQJWKRIDYDULDEOHDUJXPHQW)RUPDWWLQJ
FKDUDFWHUVVXFKDV?Q?W?E?IRU?UGRQRWQHHGWREHLQFOXGHGLQWKHPHVVDJH³WKHVRIWZDUHSURGXFWVKDOO
DXWRPDWLFDOO\IRUPDWHDFKPHVVDJH
$QH[DPSOHRIDWIBPHVVDJHFDOODQGWKHRXWSXWJHQHUDWHGDUHVKRZQEHORZ1RWHWKDWWKHIRUPDWRIWKHRXWSXWVKDOO
EHGHÀQHGE\WKHVRIWZDUHSURGXFW
&DOOLQJWIBPHVVDJHZLWKWKHDUJXPHQWV
WIBPHVVDJH(55B(55258VHU7)$5*
$UJXPHQWQXPEHUGLVLOOHJDOLQWDVNVDUJQXPWDVNQDPH
0LJKWSURGXFHWKHRXWSXW
(5525
$UJXPHQWQXPEHULVLOOHJDOLQWDVN>8VHU7)$5*@
XVHUWDVN
7KHURXWLQHWIBPHVVDJHSURYLGHVPRUHFRQWURORYHUWKHIRUPDWDQGVHYHULW\RIHUURURUZDUQLQJPHVVDJHVWKDQWKH
URXWLQHVWIBHUURUDQGWIBZDUQLQJFDQSURYLGH,QDGGLWLRQWKHURXWLQHWIBPHVVDJHFDQEHXVHGLQFRQMXQFWLRQ
ZLWKWIBWH[WZKLFKVKDOODOORZDQHUURURUZDUQLQJPHVVDJHWREHVWRUHGZKLOHD3/,DSSOLFDWLRQH[HFXWHVDGGLWLRQDO
FRGHEHIRUHWKHPHVVDJHLVSULQWHGDQGSDUVLQJRUFRPSLODWLRQRI9HULORJ+'/VRXUFHSRVVLEO\DERUWHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBPLSQDPHWIBLPLSQDPH
WIBPLSQDPHWIBLPLSQDPH
6\QRSVLV
*HWWKHKLHUDUFKLFDOPRGXOHLQVWDQFHSDWKQDPHDVDVWULQJ
6\QWD[
WIBPLSQDPH
WIBLPLSQDPHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDVWULQJFRQWDLQLQJWKHKLHUDUFKLFDOSDWKQDPH
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVSQDPHRUWIBLVSQDPHWRJHWWKHVFRSHSDWKQDPH
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHWIBPLSQDPHVKDOOUHWXUQWKH9HULORJ+'/KLHUDUFKLFDOSDWKQDPHWRWKHPRGXOHLQVWDQFHFRQWDLQLQJ
WKHFDOOWRWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH VWULQJ REWDLQHG VKDOO EH VWRUHG LQ D WHPSRUDU\ EXIIHU ,I WKH VWULQJ LV QHHGHG DFURVV PXOWLSOH FDOOV WR WKH 3/,
DSSOLFDWLRQWKHVWULQJVKRXOGEHSUHVHUYHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBPRYHSYFBÁDJWIBLPRYHSYFBÁDJ
WIBPRYHSYFBÁDJWIBLPRYHSYFBÁDJ
6\QRSVLV
0RYHSDUDPHWHUYDOXHFKDQJHIODJV
6\QWD[
WIBPRYHSYFBIODJQSDUDP
WIBLPRYHSYFBIODJQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHYDOXHRIWKHSYFÁDJ
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHURU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBDV\QFKRQRUWIBLDV\QFKRQWRHQDEOHSYFÁDJV
8VHWIBJHWSFKDQJHRUWIBLJHWSFKDQJHWRJHWWKHLQGH[QXPEHURIWKHSDUDPHWHUWKDWFKDQJHG
8VHWIBFRS\SYFBÁDJRUWIBLFRS\SYFBÁDJWRFRS\DSYFÁDJWRWKHVDYHGSYFÁDJ
8VHWIBWHVWSYFBÁDJRUWIBLWHVWSYFBÁDJWRJHWWKHYDOXHRIDVDYHGSYFÁDJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBPRYHSYFBÁDJDQGWIBPRYHSYFBÁDJVKDOOPRYHWKHFXUUHQWSYFÁDJWRWKHVDYHGSYFÁDJDQG
FOHDUWKHFXUUHQWÁDJIRUWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KH
URXWLQHVKDOOUHWXUQWKHYDOXHRIWKHÁDJWKDWZDVPRYHG
7KHDUJXPHQWQSDUDPVKDOOEHWKHLQGH[QXPEHURIDSDUDPHWHULQDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQ 7DVNIXQFWLRQ SDUDPHWHU LQGH[ QXPEHULQJ VKDOO SURFHHG IURP OHIW WR ULJKW ZLWK WKH OHIWPRVW SDUDPHWHU
EHLQJQXPEHU,IQSDUDPLVWKHQDOOSDUDPHWHUSYFÁDJVVKDOOEHPRYHGDQGWKHORJLFDO25RIDOOVDYHGÁDJV
UHWXUQHG
39&ÁDJVVKDOOEHXVHGWRLQGLFDWHZKHWKHUDSDUWLFXODUXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQSDUDPHWHUKDVFKDQJHG
YDOXH(DFKSDUDPHWHUVKDOOKDYHWZRSYFÁDJVDFXUUHQWSYFÁDJZKLFKVKDOOEHVHWE\DVRIWZDUHSURGXFWZKHQWKH
FKDQJHRFFXUVDQGDVDYHGSYFÁDJZKLFKVKDOOEHFRQWUROOHGE\WKHXVHU
127(³39&ÁDJVVKDOOQRWEHVHWE\WKHVRIWZDUHSURGXFWXQWLOWIBDV\QFKRQRUWIBLDV\QFKRQKDVEHHQFDOOHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBPXOWLSO\BORQJ
WIBPXOWLSO\BORQJ
6\QRSVLV
0XOWLSO\WZRELWLQWHJHUV
6\QWD[
WIBPXOWLSO\BORQJDRIBORZDRIBKLJKORZKLJK
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBORZ
3RLQWHUWROHDVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
DRIBKLJK
3RLQWHUWRPRVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
ORZ
/HDVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
LQW
KLJK
0RVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
8VHWIBDGGBORQJWRDGGWZRELWLQWHJHUV
8VHWIBVXEWUDFWBORQJWRVXEWUDFWWZRELWLQWHJHUV
8VHWIBGLYLGHBORQJWRGLYLGHWZRELWLQWHJHUV
8VHWIBFRPSDUHBORQJWRFRPSDUHWZRELWLQWHJHUV
7KH7)URXWLQHWIBPXOWLSO\BORQJVKDOODGGWZRELWYDOXHV$IWHUFDOOLQJWIBPXOWLSO\BORQJWKHYDULDEOHVXVHG
WRSDVVWKHÀUVWRSHUDQGVKDOOFRQWDLQWKHUHVXOWVRIWKHPXOWLSOLFDWLRQ)LJXUHVKRZVWKHKLJKDQGORZELWVRI
WZRORQJLQWHJHUVDQGKRZWIBPXOWLSO\BORQJVKDOOPXOWLSO\WKHP
LQWHJHU LQWHJHULQWHJHU
LQWHJHU
KLJK
ORZ
LQWHJHU
KLJK
ORZ
KLJKELWV
ORZELWV
)LJXUH³0XOWLSO\LQJZLWKWIBPXOWLSO\BORQJ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBQRGHLQIRWIBLQRGHLQIR
WIBQRGHLQIRWIBLQRGHLQIR
6\QRSVLV
*HWSDUDPHWHUQRGHLQIRUPDWLRQ
6\QWD[
WIBQRGHLQIRQSDUDPQRGHLQIRBS
WIBLQRGHLQIRQSDUDPQRGHLQIRBSLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
VWUXFWWBWIQRGHLQIR
'HVFULSWLRQ
7KHYDOXHRIWKHVHFRQGDUJXPHQWLIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQSDUDPHWHU
VWUXFWWBWIQRGHLQIR
QRGHLQIRBS
3RLQWHUWRDYDULDEOHGHFODUHGDVWKH
WBWIQRGHLQIRVWUXFWXUHW\SH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHG
V\VWHPWDVNRUIXQFWLRQ
8VHWIBH[SULQIRRUWIBLH[SULQIRIRUJHQHUDOLQIRUPDWLRQRQSDUDPHWHUV
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBQRGHLQIRDQGWIBLQRGHLQIRVKDOOREWDLQLQIRUPDWLRQDERXWWKHVSHFLÀHGZULWDEOHSDUDPHWHULQ
WKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KHLQIRUPDWLRQVKDOOEHVWRUHGLQWKH&VWUXFWXUHVBWIQRGHLQIRDVGHÀQHGLQWKHÀOHYHULXVHUK7KHURXWLQH
VKDOORQO\EHFDOOHGIRUSDUDPHWHUVWKDWDUHZULWDEOHHJ9HULORJ+'/UHJLVWHUGDWDW\SHV)RUSDUDPHWHUVWKDWDUH
UHDGRQO\WKH7)URXWLQHVWIBH[SULQIRRUWIBLH[SULQIRFDQEHXVHG
0HPRU\VSDFHVKDOOÀUVWEHDOORFDWHGWRKROGWKHLQIRUPDWLRQEHIRUHFDOOLQJWIBQRGHLQIRRUWIBLQRGHLQIR)RU
H[DPSOH
^
VBWIQRGHLQIRLQIRGHFODUHDYDULDEOHRIWKHVWUXFWXUHW\SH
WIBQRGHLQIRQLQIRSDVVWIBQRGHLQIRDSRLQWHUWRWKHYDULDEOH
`
7KHURXWLQHVVKDOOUHWXUQWKHVHFRQGDUJXPHQWZKLFKLVWKHSRLQWHUWRWKHLQIRUPDWLRQVWUXFWXUH,IQSDUDPLVRXWRI
UDQJHRULIVRPHRWKHUHUURULVIRXQGWKHQVKDOOEHUHWXUQHG
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
7KHVBWIQRGHLQIRVWUXFWXUHLVGHÀQHGLQYHULXVHUKDQGLVOLVWHGLQ)LJXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
W\SHGHIVWUXFWWBWIQRGHLQIR
^
VKRUW
QRGHBW\SH
VKRUW
SDGGLQJ
XQLRQ
^
VWUXFWWBYHFYDOYHFYDOBS
VWUXFWWBVWUHQJWKYDOVWUHQJWKYDOBS
FKDUPHPRU\YDOBS
GRXEOHUHDOBYDOBS
`QRGHBYDOXH
FKDU QRGHBV\PERO
LQW
QRGHBQJURXSV
LQW
QRGHBYHFBVL]H
LQW
QRGHBVLJQ
LQW
QRGHBPVBLQGH[
LQW
QRGHBOVBLQGH[
LQW
QRGHBPHPBVL]H
LQW
QRGHBOKVBHOHPHQW
LQW
QRGHBUKVBHOHPHQW
LQW
QRGHBKDQGOH
`VBWIQRGHLQIRSBWIQRGHLQIR
)LJXUH³7KHVBWIQRGHLQIRVWUXFWXUHGHÀQLWLRQ
7KHIROORZLQJSDUDJUDSKVGHÀQHWKHÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUH
7KHQRGHBW\SHÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHVKDOOLQGLFDWHWKH9HULORJ+'/GDWDW\SHRIWKHSDUDPHWHUDQG
LVRQHRIWKHSUHGHÀQHGFRQVWDQWVDVJLYHQLQ7DEOHDQGGHÀQHGLQYHULXVHUK
7DEOH³3UHGHÀQHGFRQVWDQWVIRUQRGHBW\SH
3UHGHÀQHGFRQVWDQW
'HVFULSWLRQ
WIBQXOOBQRGH
1RWDZULWDEOHSDUDPHWHU
WIBUHJBQRGH
3DUDPHWHUUHIHUHQFHVDUHJLVWHUYDULDEOH
WIBLQWHJHUBQRGH
3DUDPHWHUUHIHUHQFHVDQLQWHJHUYDULDEOH
WIBUHDOBQRGH
3DUDPHWHUUHIHUHQFHVDUHDOYDULDEOH
WIBWLPHBQRGH
3DUDPHWHUUHIHUHQFHVDWLPHYDULDEOH
WIBQHWYHFWRUBQRGH
3DUDPHWHUUHIHUHQFHVDYHFWRUQHW
WIBQHWVFDODUBQRGH
3DUDPHWHUUHIHUHQFHVDVFDODUQHW
WIBPHPRU\BQRGH
3DUDPHWHUUHIHUHQFHVDPHPRU\
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7KHQRGHBYDOXHÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHVKDOOEHDXQLRQRISRLQWHUVWRYDOXHVWUXFWXUHVGHÀQLQJWKH
FXUUHQWYDOXHRQWKHQRGHUHIHUHQFHGE\WKHSDUDPHWHU7KHXQLRQPHPEHUDFFHVVHGVKDOOGHSHQGVRQWKHQRGHBW\SH
7KHXQLRQPHPEHUVDUHJLYHQLQ7DEOH
7DEOH³+RZWKHQRGHBYDOXHXQLRQLVXVHG
:KHQWKHQRGHBW\SHLV
7KHXQLRQPHPEHUXVHGLV
WIBUHJBQRGHWIBLQWHJHUBQRGHWIBWLPHBQRGH
RUWIBQHWYHFWRUBQRGH
YHFYDOBS
WIBUHDOBQRGH
UHDOBYDOXHBS
WIBQHWVFDODUBQRGH
VWUHQJWKYDOBS
WIBPHPRU\BQRGH
PHPRU\YDOBS
,IWKHQRGHBW\SHLVWIBUHJBQRGHWIBLQWHJHUBQRGHWIBWLPHBQRGHRUWIBQHWYHFWRUBQRGHWKHQQRGHBYDOXHVKDOOEHD
SRLQWHUWRDQDUUD\RIVBYHFYDOVWUXFWXUHVWKDWJLYHVWKHUHVXOWDQWYDOXHRIWKHQRGH7KHVBYHFYDOVWUXFWXUHIRU
UHSUHVHQWLQJYHFWRUYDOXHVLVGHÀQHGLQYHULXVHUKDQGLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBYHFYDO
^
LQW
DYDOELWV
LQW
EYDOELWV
`VBYHFYDOSBYHFYDO
)LJXUH³7KHVBYHFYDOVWUXFWXUHGHÀQLWLRQ
,IWKHQXPEHURIELWVLQWKHYHFWRUGHÀQHGE\WKHQRGHBYHFBVL]HÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHLVOHVVWKDQ
RUHTXDOWRWKHQWKHUHVKDOORQO\EHRQHVBYHFYDOJURXSLQWKHQRGHBYDOXHBSDUUD\)RUELWVWRELWV
WZRJURXSVVKDOOEHLQWKHDUUD\DQGVRRQ7KHQXPEHURIJURXSVVKDOODOVRJLYHQE\WKHYDOXHRIQRGHBQJURXSV7KH
ÀHOGV IRU DYDOELWV DQG EYDOELWV RI WKH VBYHFYDO VWUXFWXUH VKDOO KROG WKH ELW SDWWHUQV PDNLQJ XS WKH YDOXH RI WKH
SDUDPHWHU7KHOVELQWKHYDOXHVKDOOEHUHSUHVHQWHGE\WKHOVE·VLQWKHDYDOELWVDQGEYDOELWVFRPSRQHQWVDQGVRRQ
7KHELWFRGLQJVKDOOEHDVJLYHQLQ7DEOH
7DEOH³DYDOELWVEYDOELWVHQFRGLQJ
DYDOEYDO
/RJLFYDOXH
+LJKLPSHGDQFH
8QNQRZQ
,IWKHQRGHBW\SHÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHLVWIBQHWVFDODUBQRGHWKHQWKHQRGHBYDOXHVWUHQJWKYDOBS
ÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHVKDOOSRLQWWRDQVBVWUHQJWKYDOVWUXFWXUHRIWKHIRUPJLYHQLQ)LJXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
W\SHGHIVWUXFWWBVWUHQJWKYDO
^
LQWVWUHQJWK
LQWVWUHQJWK
`VBVWUHQJWKYDOSBVWUHQJWKYDO
)LJXUH³7KHVBVWUHQJWKYDOVWUXFWXUHGHÀQLWLRQ
,QWKHVBVWUHQJWKYDOVWUXFWXUHVWUHQJWKVKDOOJLYHWKHVWUHQJWKELWSDWWHUQIRUWKHYDOXHDQGVWUHQJWKVKDOO
JLYHWKHVWUHQJWKELWSDWWHUQ5HIHUWRIRUGHWDLOVDERXWWKHVHELWSDWWHUQV
,IWKHQRGHBW\SHÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHLVWIBPHPRU\BQRGHWKHQQRGHBYDOXHPHPRU\YDOBSVKDOO
SRLQWWRDPHPYDOVWUXFWXUHJLYLQJWKHWRWDOFRQWHQWVRIWKHPHPRU\7KHVWUXFWXUHLVRUJDQL]HGDVVKRZQLQ)LJXUH
VWUXFW
^
FKDUDYDOELWV>QRGHBQJURXSV@
FKDUEYDOELWV>QRGHBQJURXSV@
`PHPYDO>QRGHBPHPBVL]H@
)LJXUH³7KHPHPYDOVWUXFWXUHGHÀQLWLRQ
1RWH WKDW D SRLQWHU WR WKH PHPYDO VWUXFWXUH GDWD VWUXFWXUH FDQQRW EH UHSUHVHQWHG LQ & VR WKH
QRGHBYDOXHPHPRU\YDOBS ÀHOG RI WKH VBWIQRGHLQIR VWUXFWXUH LV GHFODUHG DV D SRLQWHU WR D FKDU W\SH 7KH
PHPRU\HOHPHQWDGGUHVVHGE\WKHOHIWKDQGVLGHLQGH[JLYHQLQWKHPHPRU\GHFODUDWLRQVKDOOEHORFDWHGLQWKHÀUVW
JURXSRIE\WHVZKLFKLVWKHE\WHJURXSUHSUHVHQWHGE\PHPYDO>@
7KHQRGHBV\PEROÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHVKDOOEHDVWULQJSRLQWHUWRWKHLGHQWLÀHURIWKHSDUDPHWHU
,I WKH QRGHBW\SH ÀHOG RI WKH VBWIQRGHLQIR VWUXFWXUH LV WIBUHJBQRGH WIBLQWHJHUBQRGH WIBWLPHBQRGH RU
WIBQHWYHFWRUBQRGH WKHQ WKH QRGHBQJURXSV ÀHOG RI WKH VBWIQRGHLQIR VWUXFWXUH VKDOO LQGLFDWH WKH QXPEHU RI
JURXSVIRUWKHSDUDPHWHUQRGHYDOXHDQGVKDOOGHWHUPLQHWKHDUUD\VL]HRIWKHQRGHBYDOXHYHFYDOBSYDOXHVWUXFWXUH,I
WKHQRGHBW\SHLVWIBUHDOBQRGHWKHQQRGHBQJURXSVVKDOOEH
,I WKH QRGHBW\SH ÀHOG RI WKH VBWIQRGHLQIR VWUXFWXUH LV WIBUHJBQRGH WIBLQWHJHUBQRGH WIBWLPHBQRGH RU
WIBQHWYHFWRUBQRGHWKHQWKHQRGHBYHFBVL]HÀHOGRIWKHVBWIQRGHLQIRVWUXFWXUHVKDOOLQGLFDWHWKHWRWDOQXPEHURI
ELWVLQWKHDUUD\RIWKHQRGHBYDOXHYHFYDOBSVWUXFWXUH,IWKHQRGHBW\SHLVWIBUHDOBQRGHWKHQQRGHBYHFBVL]HVKDOOEH
7KH QRGHBVLJQ ÀHOG RI WKH VBWIQRGHLQIR VWUXFWXUH VKDOO LQGLFDWH WKH VLJQ W\SH RI WKH QRGH DV IROORZV IRU
XQVLJQHGQRQ]HURIRUVLJQHG
,I WKH QRGHBW\SH LV WIBPHPRU\BQRGH WKHQ QRGHBPHPBVL]H VKDOO LQGLFDWH WKH QXPEHU RI HOHPHQWV LQ WKH
QRGHBYDOXHPHPRU\YDOBSVWUXFWXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBQXPSWIBLQXPS
WIBQXPSWIBLQXPS
6\QRSVLV
*HWQXPEHURIWDVNRUIXQFWLRQSDUDPHWHUV
6\QWD[
WIBQXPS
WIBLQXPSLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
LQW
7KHQXPEHURISDUDPHWHUV
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBQXPS DQG WIBLQXPS VKDOO UHWXUQ WKH QXPEHU RI SDUDPHWHUV WDVNIXQFWLRQ DUJXPHQWV
VSHFLÀHG LQ WKH FXUUHQW LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG WDVN RU IXQFWLRQ VWDWHPHQW LQ WKH9HULORJ
VRXUFHGHVFULSWLRQ7KHQXPEHUUHWXUQHGVKDOOEHJUHDWHUWKDQRUHTXDOWR]HUR
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBSURSDJDWHSWIBLSURSDJDWHS
WIBSURSDJDWHSWIBLSURSDJDWHS
6\QRSVLV
3URSDJDWHDSDUDPHWHUYDOXH
6\QWD[
WIBSURSDJDWHSQSDUDP
WIBLSURSDJDWHSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBH[SULQIRRUWIBLH[SULQIRWRJHWDSDUDPHWHUH[SUHVVLRQYDOXH
8VHWIBQRGHLQIRRUWIBLQRGHLQIRWRJHWDSDUDPHWHUQRGHYDOXH
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBLSURSDJDWHS DQG WIBLSURSDJDWHS VKDOO ZULWH D YDOXH WR D SDUDPHWHU QRGH RI WKH FXUUHQW
LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ DQG WKHQ SURSDJDWH WKH YDOXH WR DQ\
FRQWLQXRXVDVVLJQPHQWVWKDWUHDGWKHYDOXHRIWKHQRGH
,Q RUGHU WR ZULWH YDOXHV EDFN LQWR D 9HULORJ VRIWZDUH SURGXFW GDWD VWUXFWXUH XVLQJ WIBLSURSDJDWHS DQG
WIBLSURSDJDWHS WKH YDOXH VKDOO ÀUVW EH SODFHG LQWR WKH YDOXH VWUXFWXUH SRLQWHG WR E\ WKH FRPSRQHQW
H[SUBYDOXHBS DV DOORFDWHG E\ FDOOLQJ WIBH[SULQIR RU WIBLH[SULQIR 7KH VWUXFWXUH IRU WIBH[SULQIR DQG
WIBLH[SULQIRVKDOOEHXVHGIRUDOOSDUDPHWHUW\SHVH[FHSWPHPRULHV)RUPHPRULHVWKHYDOXHWREHSURSDJDWHGVKDOO
EHSODFHGLQWKHVWUXFWXUHXVHGZLWKWIBQRGHLQIRRUWIBLQRGHLQIR
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBSXWORQJSWIBLSXWORQJS
WIBSXWORQJSWIBLSXWORQJS
6\QRSVLV
:ULWHDELWLQWHJHUYDOXHWRDSDUDPHWHURUIXQFWLRQUHWXUQ
6\QWD[
WIBSXWORQJSQSDUDPORZYDOXHKLJKYDOXH
WIBLSXWORQJSQSDUDPORZYDOXHKLJKYDOXHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHURUWRUHWXUQDIXQFWLRQYDOXH
LQW
ORZYDOXH
/HDVWVLJQLILFDQWULJKWPRVWELWVRIYDOXH
LQW
KLJKYDOXH
0RVWVLJQLILFDQWOHIWPRVWELWVRIYDOXH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBSXWSRUWIBLSXWSWRSXWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBSXWUHDOSRUWIBLSXWUHDOSWRJHWDSDUDPHWHUYDOXHDVDGRXEOH
8VHWIBVWUGHOSXWSWRSXWDYDOXHDVDIRUPDWWHGVWULQJZLWKGHOD\
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBSXWORQJSDQGWIBLSXWORQJSVKDOOZULWHDELWLQWHJHUYDOXHWRWKHSDUDPHWHUVSHFLÀHGE\
QSDUDPRIWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN,IQSDUDPLVWIBSXWORQJSDQG
WIBLSXWORQJSVKDOOZULWHWKHYDOXHDVWKHUHWXUQRIDXVHUGHÀQHGV\VWHPIXQFWLRQ,IQSDUDPLVRXWRIUDQJHRUWKH
SDUDPHWHUFDQQRWEHZULWWHQWRWKHQWKHURXWLQHVVKDOOGRQRWKLQJ
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
7KHGDWDW\SHRIYDOXHVKRXOGEHFRQVLVWHQWZLWKWKHW\SHRISXWURXWLQHDQGWKHW\SHRIWKHSDUDPHWHUWRZKLFKWKH
YDOXHVKDOOEHZULWWHQ5HIHUWRIRUPRUHGHWDLOVRQSURSHUGDWDW\SHVHOHFWLRQZLWKSXWURXWLQHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBSXWSWIBLSXWS
WIBSXWSWIBLSXWS
6\QRSVLV
3XWDQLQWHJHUYDOXHWRDSDUDPHWHURUIXQFWLRQUHWXUQ
6\QWD[
WIBSXWSQSDUDPYDOXH
WIBLSXWSQSDUDPYDOXHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHURUWRUHWXUQDIXQFWLRQYDOXH
LQW
YDOXH
FKDU
LQVWDQFHBS
$QLQWHJHUYDOXH
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBSXWORQJSRUWIBLSXWORQJSWRSXWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBSXWUHDOSRUWIBLSXWUHDOSWRJHWDSDUDPHWHUYDOXHDVDGRXEOH
8VHWIBVWUGHOSXWSWRSXWDYDOXHDVDIRUPDWWHGVWULQJZLWKGHOD\
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7) URXWLQH WIBSXWS DQG WIBLSXWS VKDOO ZULWH DQ LQWHJHU YDOXH WR WKH SDUDPHWHU VSHFLÀHG E\QSDUDP RI WKH
FXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN,IQSDUDPLVWIBSXWSRUWIBLSXWSVKDOOZULWH
WKHYDOXHDVWKHUHWXUQRIDXVHUGHÀQHGV\VWHPIXQFWLRQ,IQSDUDPLVRXWRIUDQJHRUWKHSDUDPHWHUFDQQRWEHZULWWHQ
WRWKHQWKHURXWLQHVVKDOOGRQRWKLQJ
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
7KHGDWDW\SHRIYDOXHVKRXOGEHFRQVLVWHQWZLWKWKHW\SHRISXWURXWLQHDQGWKHW\SHRIWKHSDUDPHWHUWRZKLFKWKH
YDOXHVKDOOEHZULWWHQ5HIHUWRIRUPRUHGHWDLOVRQSURSHUGDWDW\SHVHOHFWLRQZLWKSXWURXWLQHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBSXWUHDOSWIBLSXWUHDOS
WIBSXWUHDOSWIBLSXWUHDOS
6\QRSVLV
:ULWHDUHDOYDOXHWRDSDUDPHWHURUIXQFWLRQUHWXUQ
6\QWD[
WIBSXWUHDOSQSDUDPYDOXH
WIBLSXWUHDOSQSDUDPYDOXHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHURUWRUHWXUQDIXQFWLRQYDOXH
GRXEOH
YDOXH
FKDU
LQVWDQFHBS
$GRXEOHSUHFLVLRQYDOXH
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBSXWSRUWIBLSXWSWRSXWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBSXWORQJSRUWIBLSXWORQJSWRSXWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBVWUGHOSXWSWRSXWDYDOXHDVDIRUPDWWHGVWULQJZLWKGHOD\
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBSXWUHDOSDQGWIBLSXWUHDOSVKDOOZULWHDGRXEOHSUHFLVLRQUHDOYDOXHWRWKHSDUDPHWHUVSHFLÀHG
E\QSDUDPRIWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN,IQSDUDPLVWIBSXWUHDOS
DQGWIBLSXWUHDOSVKDOOZULWHWKHYDOXHDVWKHUHWXUQRIDXVHUGHÀQHGV\VWHPIXQFWLRQ,IQSDUDPLVRXWRIUDQJHRU
WKHSDUDPHWHUFDQQRWEHZULWWHQWRWKHQWKHURXWLQHVVKDOOGRQRWKLQJ
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
7KHGDWDW\SHRIYDOXHVKRXOGEHFRQVLVWHQWZLWKWKHW\SHRISXWURXWLQHDQGWKHW\SHRIWKHSDUDPHWHUWRZKLFKWKH
YDOXHVKDOOEHZULWWHQ5HIHUWRIRUPRUHGHWDLOVRQSURSHUGDWDW\SHVHOHFWLRQZLWKSXWURXWLQHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBUHDGBUHVWDUW
WIBUHDGBUHVWDUW
6\QRSVLV
*HWDEORFNRIGDWDIURPDSUHYLRXVO\ZULWWHQVDYHÀOH
6\QWD[
WIBUHDGBUHVWDUWEORFNSWUEORFNOHQ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
1RQ]HURLIVXFFHVVIXO]HURLIDQHUURURFFXUUHG
7\SH
1DPH
'HVFULSWLRQ
FKDU
EORFNSWU
3RLQWHUWREORFNRIVDYHGGDWD
LQW
EORFNOHQ
/HQJWKRIEORFN
8VHWIBZULWHBVDYHWRVDYHDEORFNRIGDWD
7KH 7) URXWLQH WIBUHDGBUHVWDUW VKDOO UHDG EDFN D EORFN RI PHPRU\ WKDW ZDV VDYHG ZLWK WIBZULWHBVDYH 7KLV
URXWLQHVKDOORQO\EHFDOOHGIURPWKHPLVFWIDSSOLFDWLRQZKHQWKHPLVFWIURXWLQHLVLQYRNHGZLWKUHDVRQBUHVWDUW
7KHDUJXPHQWEORFNSWUVKDOOEHDSRLQWHUWRDQDOORFDWHGEORFNRIPHPRU\WRZKLFKWKHVDYHGGDWDVKDOOEHUHVWRUHG
7KHDUJXPHQWEORFNOHQVKDOOEHWKHOHQJWKLQE\WHVRIWKHDOORFDWHGEORFNRIPHPRU\([DFWO\DVPDQ\E\WHVKDYHWR
EHUHVWRUHGDVZHUHZULWWHQZLWKWIBZULWHBVDYH
,IDQ\XVHUWDVNLQVWDQFHSRLQWHUVKDYHEHHQVDYHGIRUXVHZLWKWIBLFDOOVWIBJHWLQVWDQFHKDVWREHXVHGWRJHWQHZ
LQVWDQFH SRLQWHU YDOXHV DIWHU WKH UHVWDUW ,I SRLQWHUV WR XVHU GDWD ZHUH VDYHG WKH DSSOLFDWLRQ RI WKH XVHU KDV WR
LPSOHPHQWDVFKHPHWRUHFRQQHFWWKHPSURSHUO\
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBUHDOBWRBORQJ
WIBUHDOBWRBORQJ
6\QRSVLV
&RQYHUWDUHDOQXPEHUWRDELWLQWHJHU
6\QWD[
WIBUHDOBWRBORQJUHDOYDOXHDRIBLQWBORDRIBLQWBKL
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
GRXEOH
UHDOYDOXH
9DOXHWREHFRQYHUWHG
LQW
DRIBORZ
3RLQWHUWRDQLQWHJHUYDULDEOHVIRUVWRULQJWKHOHDVWVLJQLÀ
FDQWULJKWPRVWELWVRIWKHFRQYHUWHGYDOXH
LQW
DRIBKLJK
3RLQWHUWRDQLQWHJHUYDULDEOHVIRUVWRULQJWKHPRVWVLJQLÀ
FDQWOHIWPRVWELWVRIWKHFRQYHUWHGYDOXH
8VHWIBORQJBWRBUHDOWRFRQYHUWDELWLQWHJHUWRDUHDOQXPEHU
7KH7)URXWLQHWIBUHDOBWRBORQJVKDOOFRQYHUWDGRXEOHSUHFLVLRQÁRDWLQJSRLQWQXPEHUWRDORQJELWLQWHJHU
7KHFRQYHUWHGYDOXHVKDOOEHUHWXUQHGLQWKHYDULDEOHVSRLQWHGWRE\DRIBORZDQGDRIBKLJK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBURV\QFKURQL]HWIBLURV\QFKURQL]H
WIBURV\QFKURQL]HWIBLURV\QFKURQL]H
6\QRSVLV
6\QFKURQL]HWRHQGRIVLPXODWLRQWLPHVWHS
6\QWD[
WIBURV\QFKURQL]H
WIBLURV\QFKURQL]HLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
8VHWIBV\QFKURQL]HWRV\QFKURQL]HWRHQGRIVLPXODWLRQWLPHVWHS
8VHWIBJHWQH[WORQJWLPHWRJHWQH[WWLPHDWZKLFKDVLPXODWLRQHYHQWLVVFKHGXOHG
7KH 7) URXWLQH WIBURV\QFKURQL]H DQG WIBLURV\QFKURQL]H VKDOO VFKHGXOH D FDOOEDFN WR WKH PLVFWI DSSOLFDWLRQ
DVVRFLDWHG ZLWK WKH FXUUHQW LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7KH PLVFWI
DSSOLFDWLRQVKDOOEHFDOOHGZLWKDUHDVRQRIUHDVRQBURV\QFKDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPHVWHS
7KHURXWLQHVWIBV\QFKURQL]HDQGWIBURV\QFKURQL]HKDYHGLIIHUHQWIXQFWLRQDOLW\7KHURXWLQH WIBV\QFKURQL]H
VKDOOFDOOWKHDVVRFLDWHGPLVFWIDSSOLFDWLRQDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPHVWHSZLWKUHDVRQBV\QFKDQGWKH
PLVFWIDSSOLFDWLRQVKDOOEHDOORZHGWRVFKHGXOHDGGLWLRQDOVLPXODWLRQHYHQWVXVLQJURXWLQHVVXFKDVWIBVWUGHOSXWS
7KHURXWLQHWIBURV\QFKURQL]HVKDOOFDOOWKHDVVRFLDWHGPLVFWIDSSOLFDWLRQDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPH
VWHS ZLWK UHDVRQBURV\QFK DQG WKH 3/, VKDOO QRW EH DOORZHG WR VFKHGXOH DQ\ QHZ HYHQWV7KLV JXDUDQWHHV WKDW DOO
VLPXODWLRQHYHQWVIRUWKHFXUUHQWWLPHDUHFRPSOHWHG&DOOVWRURXWLQHVVXFKDVWIBVWUGHOSXWSDQGWIBVHWGHOD\DUH
LOOHJDOGXULQJSURFHVVLQJRIWKHPLVFWIDSSOLFDWLRQZLWKUHDVRQUHDVRQBURV\QFK
7KHURXWLQHWIBJHWQH[WORQJWLPHVKDOORQO\UHWXUQWKHQH[WVLPXODWLRQWLPHIRUZKLFKDQHYHQWLVVFKHGXOHGZKHQ
XVHGLQFRQMXQFWLRQZLWKWKHURXWLQHVWIBURV\QFKURQL]HDQGWIBLURV\QFKURQL]H
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVFDOHBORQJGHOD\
WIBVFDOHBORQJGHOD\
6\QRSVLV
&RQYHUWDELWLQWHJHUGHOD\WRLQWHUQDOVLPXODWLRQWLPHXQLWV
6\QWD[
WIBVFDOHBORQJGHOD\LQVWDQFHBSGHOD\BORGHOD\BKL
DRIBGHOD\BORDRIBGHOD\BKL
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
LQW
GHOD\BOR
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIWKHGHOD\WREHFRQ
YHUWHG
LQW
GHOD\BKL
0RVWVLJQLÀFDQWOHIWPRVWELWVRIWKHGHOD\WREHFRQ
YHUWHG
LQW
DRIBGHOD\BOR
3RLQWHUWRDYDULDEOHWRVWRUHWKHOHDVWVLJQLÀFDQWULJKW
PRVWELWVRIWKHFRQYHUVLRQUHVXOW
LQW
DRIBGHOD\BKL
3RLQWHUWRDYDULDEOHWRVWRUHWKHPRVWVLJQLÀFDQWOHIWPRVW
ELWVRIWKHFRQYHUVLRQUHVXOW
8VHWIBVFDOHBUHDOGHOD\WRVFDOHUHDOQXPEHUGHOD\V
8VHWIBXQVFDOHBORQJGHOD\WRFRQYHUWDGHOD\WRWKHWLPHXQLWRIDPRGXOH
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQH WIBVFDOHBORQJGHOD\ VKDOO FRQYHUW D ORQJ ELW LQWHJHU GHOD\ LQWR WKH WLPHVFDOH RI WKH PRGXOH
FRQWDLQLQJ WKH LQVWDQFH RI WKH XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ SRLQWHG WR E\ LQVWDQFHBS 7KH DUJXPHQWV
DRIBGHOD\BORDQGDRIBGHOD\BKLVKDOOFRQWDLQWKHDGGUHVVRIWKHFRQYHUWHGGHOD\UHWXUQHGE\WKHURXWLQH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBVFDOHBUHDOGHOD\
WIBVFDOHBUHDOGHOD\
6\QRSVLV
&RQYHUWDGRXEOHSUHFLVLRQÁRDWLQJSRLQWGHOD\WRLQWHUQDOVLPXODWLRQWLPHXQLWV
6\QWD[
WIBVFDOHBUHDOGHOD\LQVWDQFHBSUHDOGHOD\DRIBUHDOGHOD\
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
GRXEOH
UHDOGHOD\
GRXEOH
DRIBUHDOGHOD\
9DOXHRIWKHGHOD\WREHFRQYHUWHG
3RLQWHUWRDYDULDEOHWRVWRUHWKHFRQYHUVLRQUHVXOW
8VHWIBVFDOHBORQJGHOD\WRVFDOHELWLQWHJHUGHOD\V
8VHWIBXQVFDOHBUHDOGHOD\WRFRQYHUWDGHOD\WRWKHWLPHXQLWRIDPRGXOH
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHWIBVFDOHBUHDOGHOD\VKDOOFRQYHUWDGRXEOHSUHFLVLRQÁRDWLQJSRLQWGHOD\LQWRWKHWLPHVFDOHRIWKH
PRGXOHFRQWDLQLQJWKHLQVWDQFHRIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQSRLQWHGWRE\LQVWDQFHBS7KHDUJXPHQW
DRIBUHDOGHOD\VKDOOFRQWDLQWKHDGGUHVVRIWKHFRQYHUWHGGHOD\UHWXUQHGE\WKHURXWLQH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVHWGHOD\WIBLVHWGHOD\
WIBVHWGHOD\WIBLVHWGHOD\
6\QRSVLV
$FWLYDWHWKHPLVFWIDSSOLFDWLRQDWDSDUWLFXODUVLPXODWLRQWLPH
6\QWD[
WIBVHWGHOD\GHOD\
WIBLVHWGHOD\GHOD\LQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
LQW
GHOD\
FKDU
LQVWDQFHBS
'HVFULSWLRQ
ELWLQWHJHUGHOD\WLPH
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVHWORQJGHOD\RUWIBLVHWORQJGHOD\IRUELWLQWHJHUUHDFWLYDWLRQGHOD\V
8VHWIBVHWUHDOGHOD\RUWIBLVHWUHDOGHOD\IRUUHDOQXPEHUUHDFWLYDWLRQGHOD\V
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBVHWGHOD\DQGWIBLVHWGHOD\VKDOOVFKHGXOHDFDOOEDFNWRWKHPLVFWIDSSOLFDWLRQDVVRFLDWHGZLWK
WKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KHPLVFWIDSSOLFDWLRQVKDOOEH
FDOOHGDWDIXWXUHUHDFWLYDWLRQWLPH7KHUHDFWLYDWLRQWLPHVKDOOEHWKHFXUUHQWVLPXODWLRQWLPHSOXVWKHVSHFLÀHGGHOD\
7KHPLVFWIDSSOLFDWLRQVKDOOEHFDOOHGDWWKHUHDFWLYDWLRQWLPHZLWKDUHDVRQRIUHDVRQBUHDFWLYDWH7KHWIBVHWGHOD\
DQG WIBLVHWGHOD\ URXWLQHV FDQ EH FDOOHG VHYHUDO WLPHV ZLWK GLIIHUHQW GHOD\V DQG VHYHUDO UHDFWLYDWLRQV VKDOO EH
VFKHGXOHG
7KH GHOD\ DUJXPHQW VKDOO EH D ELW LQWHJHU DQG VKDOO EH JUHDWHU WKDQ RU HTXDO WR 7KH GHOD\ VKDOO DVVXPH WKH
WLPHVFDOHXQLWVVSHFLÀHGIRUWKHPRGXOHFRQWDLQLQJWKHVSHFLÀFV\VWHPWDVNFDOO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBVHWORQJGHOD\WIBLVHWORQJGHOD\
WIBVHWORQJGHOD\WIBLVHWORQJGHOD\
6\QRSVLV
$FWLYDWHWKHPLVFWIDSSOLFDWLRQDWDSDUWLFXODUVLPXODWLRQWLPH
6\QWD[
WIBVHWORQJGHOD\ORZGHOD\KLJKGHOD\
WIBLVHWORQJGHOD\ORZGHOD\KLJKGHOD\LQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
'HVFULSWLRQ
LQW
ORZGHOD\
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIWKHGHOD\WLPHWR
UHDFWLYDWLRQ
LQW
KLJKGHOD\
0RVWVLJQLÀFDQWOHIWPRVWELWVRIWKHGHOD\WLPHWRUHDF
WLYDWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVHWGHOD\RUWIBLVHWGHOD\IRUELWLQWHJHUUHDFWLYDWLRQGHOD\V
8VHWIBVHWUHDOGHOD\RUWIBLVHWUHDOGHOD\IRUUHDOQXPEHUUHDFWLYDWLRQGHOD\V
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBVHWORQJGHOD\ DQG WIBLVHWORQJGHOD\ VKDOO VFKHGXOH D FDOOEDFN WR WKH PLVFWI DSSOLFDWLRQ
DVVRFLDWHG ZLWK WKH FXUUHQW LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7KH PLVFWI
DSSOLFDWLRQVKDOOEHFDOOHGDWDIXWXUHUHDFWLYDWLRQWLPH7KHUHDFWLYDWLRQWLPHVKDOOEHWKHFXUUHQWVLPXODWLRQWLPHSOXV
WKHVSHFLÀHGGHOD\7KHPLVFWIURXWLQHVKDOOEHFDOOHGDWWKHUHDFWLYDWLRQWLPHZLWKDUHDVRQRIUHDVRQBUHDFWLYDWH7KH
WIBVHWORQJGHOD\ DQG WIBLVHWORQJGHOD\ URXWLQHV FDQ EH FDOOHG VHYHUDO WLPHV ZLWK GLIIHUHQW GHOD\V DQG VHYHUDO
UHDFWLYDWLRQVVKDOOEHVFKHGXOHG
7KH GHOD\ DUJXPHQW VKDOO EH D ELW LQWHJHU DQG VKDOO EH JUHDWHU WKDQ RU HTXDO WR 7KH GHOD\ VKDOO DVVXPH WKH
WLPHVFDOHXQLWVVSHFLÀHGIRUWKHPRGXOHFRQWDLQLQJWKHVSHFLÀFV\VWHPWDVNFDOO
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVHWUHDOGHOD\WIBLVHWUHDOGHOD\
WIBVHWUHDOGHOD\WIBLVHWUHDOGHOD\
6\QRSVLV
$FWLYDWHWKHPLVFWIDSSOLFDWLRQDWDSDUWLFXODUVLPXODWLRQWLPH
6\QWD[
WIBVHWUHDOGHOD\UHDOGHOD\
WIBLVHWUHDOGHOD\UHDOGHOD\LQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURURFFXUUHG
7\SH
1DPH
GRXEOH
UHDOGHOD\
FKDU
LQVWDQFHBS
'HVFULSWLRQ
'RXEOHSUHFLVLRQGHOD\WLPHWRUHDFWLYDWLRQ
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVHWGHOD\RUWIBLVHWGHOD\IRUELWLQWHJHUUHDFWLYDWLRQGHOD\V
8VHWIBVHWORQJGHOD\RUWIBLVHWORQJGHOD\IRUELWLQWHJHUUHDFWLYDWLRQGHOD\V
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBVHWUHDOGHOD\ DQG WIBLVHWUHDOGHOD\ VKDOO VFKHGXOH D FDOOEDFN WR WKH PLVFWI DSSOLFDWLRQ
DVVRFLDWHG ZLWK WKH FXUUHQW LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7KH PLVFWI
DSSOLFDWLRQVKDOOEHFDOOHGDWDIXWXUHUHDFWLYDWLRQWLPH7KHUHDFWLYDWLRQWLPHVKDOOEHWKHFXUUHQWVLPXODWLRQWLPHSOXV
WKHVSHFLÀHGGHOD\7KHPLVFWIDSSOLFDWLRQVKDOOEHFDOOHGDWWKHUHDFWLYDWLRQWLPHZLWKDUHDVRQRIUHDVRQBUHDFWLYDWH
7KHWIBVHWUHDOGHOD\DQGWIBLVHWUHDOGHOD\URXWLQHVFDQEHFDOOHGVHYHUDOWLPHVZLWKGLIIHUHQWGHOD\VDQGVHYHUDO
UHDFWLYDWLRQVVKDOOEHVFKHGXOHG
7KHGHOD\DUJXPHQWVKDOOEHDGRXEOHSUHFLVLRQYDOXHDQGVKDOOEHJUHDWHUWKDQRUHTXDOWR7KHGHOD\VKDOODVVXPH
WKHWLPHVFDOHXQLWVVSHFLÀHGIRUWKHPRGXOHFRQWDLQLQJWKHVSHFLÀFV\VWHPWDVNFDOO
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBVHWZRUNDUHDWIBLVHWZRUNDUHD
WIBVHWZRUNDUHDWIBLVHWZRUNDUHD
6\QRSVLV
6WRUHXVHUGDWDSRLQWHULQZRUNDUHD
6\QWD[
WIBVHWZRUNDUHDZRUNDUHD
WIBLVHWZRUNDUHDZRUNDUHDLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
ZRUNDUHD
3RLQWHUWRXVHUGDWD
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWZRUNDUHDRUWIBLJHWZRUNDUHDWRUHWULHYHWKHXVHUGDWDSRLQWHU
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBVHWZRUNDUHDDQGWIBLVHWZRUNDUHDVKDOOVWRUHDSRLQWHUWRXVHUGDWDLQWKHZRUNDUHDRIWKH
FXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KHSRLQWHUWKDWLVVWRUHGFDQEH
UHWULHYHGE\FDOOLQJWIBJHWZRUNDUHDRUWIBLJHWZRUNDUHD
7KHZRUNDUHDFDQEHXVHGIRU
³ 6DYLQJLQIRUPDWLRQGXULQJRQHFDOOWRD3/,URXWLQHZKLFKFDQEHUHWULHYHGXSRQDVXEVHTXHQWLQYRFDWLRQRI
WKHURXWLQH
³ 3DVVLQJLQIRUPDWLRQIURPW\SHRI3/,DSSOLFDWLRQWRDQRWKHUVXFKDVIURPDFKHFNWIDSSOLFDWLRQWRDFDOOWI
DSSOLFDWLRQ
1RWHWKDWWKHZRUNDUHDSRLQWHULVDFKDUW\SH,IWKHPHPRU\DOORFDWHGIRUWKHXVHUGDWDLVRIVRPHRWKHUW\SHLW
VKRXOGEHFDVWWRFKDU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVL]HSWIBLVL]HS
WIBVL]HSWIBLVL]HS
6\QRSVLV
*HWWKHELWOHQJWKRIDSDUDPHWHU
6\QWD[
WIBVL]HSQSDUDP
WIBLVL]HSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHQXPEHURIELWVRIWKHSDUDPHWHU
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBVL]HSDQGWIBLVL]HSVKDOOUHWXUQWKHYDOXHVL]HLQELWVRIWKHVSHFLÀHGSDUDPHWHULQWKHFXUUHQW
LQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
,IWKHVSHFLÀHGSDUDPHWHULVDOLWHUDOVWULQJWIBVL]HSDQGWIBLVL]HSVKDOOUHWXUQWKHVWULQJOHQJWK
,IWKHVSHFLÀHGSDUDPHWHULVUHDORULIDQHUURULVGHWHFWHGWIBVL]HSDQGWIBLVL]HSVKDOOUHWXUQ
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBVSQDPHWIBLVSQDPH
WIBVSQDPHWIBLVSQDPH
6\QRSVLV
*HWVFRSHKLHUDUFKLFDOSDWKQDPHDVDVWULQJ
6\QWD[
WIBVSQDPH
WIBLVSQDPHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDFKDUDFWHUVWULQJZLWKWKHKLHUDUFKLFDOSDWKQDPH
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBVSQDPHDQGWIBLVSQDPHVKDOOUHWXUQDSRLQWHUWRWKH9HULORJ+'/KLHUDUFKLFDOSDWKQDPHWR
WKHVFRSHFRQWDLQLQJWKHFDOORIDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
$VFRSHVKDOOEH
³
³
³
³
³
³
$WRSOHYHOPRGXOH
$PRGXOHLQVWDQFH
$QDPHGEHJLQHQGEORFN
$QDPHGIRUNMRLQEORFN
$9HULORJ+'/WDVN
$9HULORJ+'/IXQFWLRQ
7KH VWULQJ REWDLQHG VKDOO EH VWRUHG LQ D WHPSRUDU\ EXIIHU ,I WKH VWULQJ LV QHHGHG DFURVV PXOWLSOH FDOOV WR WKH 3/,
DSSOLFDWLRQWKHVWULQJVKRXOGEHSUHVHUYHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVWUGHOSXWSWIBLVWUGHOSXWS
WIBVWUGHOSXWSWIBLVWUGHOSXWS
6\QRSVLV
:ULWHDYDOXHWRDSDUDPHWHUIURPVWULQJYDOXHVSHFLÀFDWLRQXVLQJDELWLQWHJHUGHOD\
6\QWD[
WIBVWUGHOSXWSQSDUDPELWOHQJWKIRUPDWYDOXHBSGHOD\GHOD\W\SH
WIBLVWUGHOSXWSQSDUDPELWOHQJWKIRUPDWYDOXHBSGHOD\GHOD\W\SH
LQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
LQW
LIVXFFHVVIXOLIDQHUURULVGHWHFWHG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
LQW
ELWOHQJWK
1XPEHURIELWVWKHYDOXHUHSUHVHQWV
LQW
IRUPDW
$FKDUDFWHULQVLQJOHTXRWHVUHSUHVHQWLQJWKHUDGL[EDVHRI
WKHYDOXH
TXRWHGVWULQJRU
FKDU
YDOXHBS
4XRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJZLWK
WKHYDOXHWREHZULWWHQ
LQW
GHOD\
,QWHJHUYDOXHUHSUHVHQWLQJWKHWLPHGHOD\EHIRUHWKHYDOXH
VKRXOGEHZULWWHQWRWKHSDUDPHWHU
LQW
GHOD\W\SH
,QWHJHUFRGHUHSUHVHQWLQJWKHGHOD\PRGHIRUDSSO\LQJWKH
YDOXH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVWUORQJGHOSXWSRUWIBLVWUORQJGHOSXWSIRUELWLQWHJHUGHOD\V
8VHWIBVWUUHDOGHOSXWSRUWIBLVWUUHDOGHOSXWSIRUUHDOQXPEHUGHOD\V
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBVWUGHOSXWS DQG WIBLVWUGHOSXWS VKDOO ZULWH D VWULQJ YDOXH WR WKH VSHFLÀHG SDUDPHWHU RI WKH
FXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN7KHDFWXDOFKDQJHWRWKHSDUDPHWHUVKDOOEH
VFKHGXOHGDVDQHYHQWRQWKHSDUDPHWHULQWKH9HULORJPRGHODWDIXWXUHVLPXODWLRQWLPH
7KHELWOHQJWKDUJXPHQWVKDOOGHÀQHWKHYDOXHVL]HLQELWV
7KHIRUPDWVKDOOGHÀQHWKHIRUPDWRIWKHYDOXHVSHFLÀHGE\YDOXHBSDQGVKDOOEHRQHRIWKHFKDUDFWHUVJLYHQLQ7DEOH
7DEOH³)RUPDWFKDUDFWHUV
6HFWLRQ
)RUPDWFKDUDFWHU
'HVFULSWLRQ
·E·RU·%·
9DOXHLVLQELQDU\
·R·RU·2·
9DOXHLVLQRFWDO
·G·RU·'·
9DOXHLVLQGHFLPDO
·K·RU·+·
9DOXHLVLQKH[DGHFLPDO
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHGHOD\DUJXPHQWVKDOOUHSUHVHQWWKHDPRXQWRIWLPHEHIRUHWKHYDOXHVKDOOEHDSSOLHGWRWKHSDUDPHWHUDQGLWVKDOO
EHJUHDWHUWKDQRUHTXDOWR7KHGHOD\VKDOODVVXPHWKHWLPHVFDOHXQLWVRIWKHPRGXOHFRQWDLQLQJWKHLQVWDQFHRIWKH
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KHGHOD\W\SHDUJXPHQWVKDOOGHWHUPLQHKRZWKHYDOXHVKDOOEHVFKHGXOHGLQUHODWLRQWRRWKHUVLPXODWLRQHYHQWVRQWKH
VDPHUHJLVWHU7KHGHOD\W\SHVKDOOEHRQHRILQWHJHUYDOXHVVKRZQLQ7DEOH
7DEOH³GHOD\W\SHFRGHV
GHOD\W\SHFRGH
'HÀQLWLRQ
'HVFULSWLRQ
,QHUWLDOGHOD\
$OOVFKHGXOHGHYHQWVRQWKHRXWSXWSDUDPHWHULQWKH9HU
LORJPRGHODUHUHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW
0RGLÀHGWUDQVSRUWGHOD\
$OOHYHQWVWKDWDUHVFKHGXOHGIRUWLPHVODWHUWKDQWKHQHZ
HYHQWRQWKHRXWSXWSDUDPHWHULQWKH9HULORJPRGHODUH
UHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW
3XUHWUDQVSRUWGHOD\
1RVFKHGXOHGHYHQWVRQWKHRXWSXWSDUDPHWHULQWKH9HU
LORJPRGHODUHUHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW³
WKHODVWHYHQWWREHVFKHGXOHGLVQRWQHFHVVDULO\WKHODVW
RQHWRRFFXU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVWUJHWSWIBLVWUJHWS
WIBVWUJHWSWIBLVWUJHWS
6\QRSVLV
*HWIRUPDWWHGSDUDPHWHUYDOXHV
6\QWD[
WIBVWUJHWSQSDUDPIRUPDW
WIBLVWUJHWSQSDUDPIRUPDWLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDFKDUDFWHUVWULQJZLWKWKHSDUDPHWHUYDOXH
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
IRUPDW
&KDUDFWHULQVLQJOHTXRWHVFRQWUROOLQJWKHUHWXUQYDOXH
IRUPDW
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBJHWSRUWIBLJHWSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWORQJSRUWIBLJHWORQJSWRJHWDSDUDPHWHUYDOXHDVDELWLQWHJHU
8VHWIBJHWUHDOSRUWIBLJHWUHDOSWRJHWDSDUDPHWHUYDOXHDVDGRXEOH
8VHWIBJHWFVWULQJSRUWIBLJHWFVWULQJSWRJHWDSDUDPHWHUYDOXHDVDVWULQJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBVWUJHWS DQG WIBLVWUJHWS VKDOO UHWXUQ D SRLQWHU WR D VWULQJ WKDW FRQWDLQV WKH YDOXH RI WKH
SDUDPHWHUH[SUHVVLRQRIWKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KHVWULQJIRUPDWLVVSHFLÀHGE\IRUPDWDQGVKDOOEHRQHRIWKHIROORZLQJFKDUDFWHUVVKRZQLQ7DEOH
7DEOH³)RUPDWFKDUDFWHUV
)RUPDWFKDUDFWHU
'HVFULSWLRQ
·E·RU·%·
9DOXHLVLQELQDU\
·R·RU·2·
9DOXHLVLQRFWDO
·G·RU·'·
9DOXHLVLQGHFLPDO
·K·RU·+·
9DOXHLVLQKH[DGHFLPDO
7KHVWULQJYDOXHUHWXUQHGVKDOOKDYHWKHVDPHIRUPDVRXWSXWIURPWKHIRUPDWWHGEXLOWLQV\VWHPWDVNGLVSOD\LQ
WHUPVRIYDOXHOHQJWKVDQGYDOXHFKDUDFWHUVXVHG7KHOHQJWKVKDOOEHRIDUELWUDU\VL]HQRWOLPLWHGWRELWVDVZLWK
WKHWIBJHWSURXWLQHDQGXQNQRZQDQGKLJKLPSHGDQFHYDOXHVVKDOOEHREWDLQHG
7KHUHIHUHQFHGSDUDPHWHUFDQEHDVWULQJLQZKLFKFDVHDSRLQWHUWRWKHVWULQJVKDOOEHUHWXUQHGWKHIRUPDWVKDOOEH
LJQRUHGLQWKLVFDVH7KHVWULQJREWDLQHGVKDOOEHVWRUHGLQDWHPSRUDU\EXIIHU,IWKHVWULQJLVQHHGHGDFURVVPXOWLSOH
FDOOVWRWKH3/,DSSOLFDWLRQWKHVWULQJVKRXOGEHSUHVHUYHG
$QXOOSRLQWHUVKDOOEHUHWXUQHGIRUHUURUV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBVWUJHWWLPH
WIBVWUJHWWLPH
6\QRSVLV
*HWWKHFXUUHQWVLPXODWLRQWLPHDVDVWULQJ
6\QWD[
WIBVWUJHWWLPH
7\SH
5HWXUQV
FKDU
7\SH
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
3RLQWHUWRDFKDUDFWHUVWULQJZLWKWKHVLPXODWLRQWLPH
1DPH
'HVFULSWLRQ
1RDUJXPHQWV
8VHWIBJHWWLPHWRJHWVLPXODWLRQWLPHDVDELWLQWHJHUYDOXH
8VHWIBJHWORQJWLPHWRJHWVLPXODWLRQWLPHDVDELWLQWHJHUYDOXH
8VHWIBJHWUHDOWLPHWRJHWVLPXODWLRQWLPHDVDUHDOYDOXH
7KH 7) URXWLQH WIBVWUJHWWLPH VKDOO UHWXUQ D SRLQWHU WR D VWULQJ ZKLFK VKDOO EH WKH$6&,, UHSUHVHQWDWLRQ RI WKH
FXUUHQW VLPXODWLRQ WLPH 7KH VWULQJ REWDLQHG VKDOO EH VWRUHG LQ D WHPSRUDU\ EXIIHU ,I WKH VWULQJ LV QHHGHG DFURVV
PXOWLSOHFDOOVWRWKH3/,DSSOLFDWLRQWKHVWULQJVKRXOGEHSUHVHUYHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVWUORQJGHOSXWSWIBLVWUORQJGHOSXWS
WIBVWUORQJGHOSXWSWIBLVWUORQJGHOSXWS
6\QRSVLV
:ULWHDYDOXHWRDSDUDPHWHUIURPVWULQJYDOXHVSHFLÀFDWLRQXVLQJDELWLQWHJHUGHOD\
6\QWD[
WIBVWUORQJGHOSXWSQSDUDPELWOHQJWKIRUPDWYDOXHBSORZGHOD\
KLJKGHOD\GHOD\W\SH
WIBLVWUORQJGHOSXWSQSDUDPELWOHQJWKIRUPDWYDOXHBSORZGHOD\
KLJKGHOD\GHOD\W\SHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
LIVXFFHVVIXOLIDQHUURULVGHWHFWHG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
LQW
ELWOHQJWK
1XPEHURIELWVWKHYDOXHUHSUHVHQWV
LQW
IRUPDW
$FKDUDFWHULQVLQJOHTXRWHVUHSUHVHQWLQJWKHUDGL[EDVHRI
WKHYDOXH
TXRWHGVWULQJRU
FKDU
YDOXHBS
4XRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJZLWK
WKHYDOXHWREHZULWWHQ
LQW
ORZGHOD\
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIGHOD\EHIRUHWKH
YDOXHLVEHZULWWHQWRWKHSDUDPHWHU
LQW
KLJKGHOD\
0RVWVLJQLÀFDQWOHIWPRVWELWVRIGHOD\EHIRUHWKHYDOXH
LVEHZULWWHQWRWKHSDUDPHWHU
LQW
GHOD\W\SH
,QWHJHUFRGHUHSUHVHQWLQJWKHGHOD\PRGHIRUDSSO\LQJWKH
YDOXH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVWUGHOSXWSRUWIBLVWUGHOSXWSIRUELWLQWHJHUGHOD\V
8VHWIBVWUUHDOGHOSXWSRUWIBLVWUUHDOGHOSXWSIRUUHDOQXPEHUGHOD\V
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBVWUORQJGHOSXWSDQGWIBLVWUORQJGHOSXWSVKDOOZULWHDVWULQJYDOXHWRWKHVSHFLÀHGSDUDPHWHURI
WKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN7KHDFWXDOFKDQJHWRWKHSDUDPHWHUVKDOOEH
VFKHGXOHGDVDQHYHQWRQWKHSDUDPHWHULQWKH9HULORJPRGHODWDIXWXUHVLPXODWLRQWLPH
7KHELWOHQJWKDUJXPHQWVKDOOGHÀQHWKHYDOXHVL]HLQELWV
7KHIRUPDWVKDOOGHÀQHWKHIRUPDWRIWKHYDOXHVSHFLÀHGE\YDOXHBSDQGVKDOOEHRQHRIWKHFKDUDFWHUVVKRZQLQ7DEOH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³)RUPDWFKDUDFWHUV
)RUPDWFKDUDFWHU
'HVFULSWLRQ
·E·RU·%·
9DOXHLVLQELQDU\
·R·RU·2·
9DOXHLVLQRFWDO
·G·RU·'·
9DOXHLVLQGHFLPDO
·K·RU·+·
9DOXHLVLQKH[DGHFLPDO
7KHGHOD\DUJXPHQWVKDOOUHSUHVHQWWKHDPRXQWRIWLPHEHIRUHWKHYDOXHVKDOOEHDSSOLHGWRWKHSDUDPHWHUDQGLWVKDOO
EHJUHDWHUWKDQRUHTXDOWR7KHGHOD\VKDOODVVXPHWKHWLPHVFDOHXQLWVRIWKHPRGXOHFRQWDLQLQJWKHLQVWDQFHRIWKH
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KHGHOD\W\SHDUJXPHQWVKDOOGHWHUPLQHKRZWKHYDOXHVKDOOEHVFKHGXOHGLQUHODWLRQWRRWKHUVLPXODWLRQHYHQWVRQWKH
VDPHUHJLVWHU7KHGHOD\W\SHVKDOOEHRQHRILQWHJHUYDOXHVVKRZQLQ7DEOH
7DEOH³GHOD\W\SHFRGHV
GHOD\W\SHFRGH
'HÀQLWLRQ
'HVFULSWLRQ
,QHUWLDOGHOD\
$OOVFKHGXOHGHYHQWVRQWKHRXWSXWSDUDPHWHULQWKH9HU
LORJPRGHODUHUHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW
0RGLÀHGWUDQVSRUWGHOD\
$OOHYHQWVWKDWDUHVFKHGXOHGIRUWLPHVODWHUWKDQWKHQHZ
HYHQWRQWKHRXWSXWSDUDPHWHULQWKH9HULORJPRGHODUH
UHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW
3XUHWUDQVSRUWGHOD\
1RVFKHGXOHGHYHQWVRQWKHRXWSXWSDUDPHWHULQWKH9HU
LORJPRGHODUHUHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW³
WKHODVWHYHQWWREHVFKHGXOHGLVQRWQHFHVVDULO\WKHODVW
RQHWRRFFXU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVWUUHDOGHOSXWSWIBLVWUUHDOGHOSXWS
WIBVWUUHDOGHOSXWSWIBLVWUUHDOGHOSXWS
6\QRSVLV
:ULWHDYDOXHWRDSDUDPHWHUIURPVWULQJYDOXHVSHFLÀFDWLRQXVLQJDUHDOQXPEHUGHOD\
6\QWD[
WIBVWUUHDOGHOSXWSQSDUDPELWOHQJWKIRUPDWYDOXHBSUHDOGHOD\
GHOD\W\SH
WIBLVWUUHDOGHOSXWSQSDUDPELWOHQJWKIRUPDWYDOXHBSUHDOGHOD\
GHOD\W\SHLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
LQW
LIVXFFHVVIXOLIDQHUURULVGHWHFWHG
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
LQW
ELWOHQJWK
1XPEHURIELWVWKHYDOXHUHSUHVHQWV
LQW
IRUPDW
$FKDUDFWHULQVLQJOHTXRWHVUHSUHVHQWLQJWKHUDGL[EDVHRI
WKHYDOXH
TXRWHGVWULQJRU
FKDU
YDOXHBS
4XRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJZLWK
WKHYDOXHWREHZULWWHQ
GRXEOH
UHDOGHOD\
'RXEOHSUHFLVLRQYDOXHUHSUHVHQWLQJWKHWLPHGHOD\EHIRUH
WKHYDOXHVKDOOEHZULWWHQWRWKHSDUDPHWHU
LQW
GHOD\W\SH
,QWHJHUFRGHUHSUHVHQWLQJWKHGHOD\PRGHIRUDSSO\LQJWKH
YDOXH
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBVWUGHOSXWSRUWIBLVWUGHOSXWSIRUELWLQWHJHUGHOD\V
8VHWIBVWUORQJGHOSXWSRUWIBLVWUORQJGHOSXWSIRUELWLQWHJHUGHOD\V
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBVWUUHDOGHOSXWSDQGWIBLVWUUHDOGHOSXWSVKDOOZULWHDVWULQJYDOXHWRWKHVSHFLÀHGSDUDPHWHURI
WKHFXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN7KHDFWXDOFKDQJHWRWKHSDUDPHWHUVKDOOEH
VFKHGXOHGDVDQHYHQWRQWKHSDUDPHWHULQWKH9HULORJPRGHODWDIXWXUHVLPXODWLRQWLPH
7KHELWOHQJWKDUJXPHQWVKDOOGHÀQHWKHYDOXHVL]HLQELWV
7KHIRUPDWVKDOOGHÀQHWKHIRUPDWRIWKHYDOXHVSHFLÀHGE\YDOXHBSDQGVKDOOEHRQHRIWKHFKDUDFWHUVJLYHQLQ7DEOH
7DEOH³)RUPDWFKDUDFWHUV
6HFWLRQ
)RUPDWFKDUDFWHU
'HVFULSWLRQ
·E·RU·%·
9DOXHLVLQELQDU\
·R·RU·2·
9DOXHLVLQRFWDO
·G·RU·'·
9DOXHLVLQGHFLPDO
·K·RU·+·
9DOXHLVLQKH[DGHFLPDO
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KHGHOD\DUJXPHQWVKDOOUHSUHVHQWWKHDPRXQWRIWLPHEHIRUHWKHYDOXHVKDOOEHDSSOLHGWRWKHSDUDPHWHUDQGLWVKDOO
EHJUHDWHUWKDQRUHTXDOWR7KHGHOD\VKDOODVVXPHWKHWLPHVFDOHXQLWVRIWKHPRGXOHFRQWDLQLQJWKHLQVWDQFHRIWKH
XVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KHGHOD\W\SHDUJXPHQWVKDOOGHWHUPLQHKRZWKHYDOXHVKDOOEHVFKHGXOHGLQUHODWLRQWRRWKHUVLPXODWLRQHYHQWVRQWKH
VDPHUHJLVWHU7KHGHOD\W\SHVKDOOEHRQHRILQWHJHUYDOXHVVKRZQLQ7DEOH
7DEOH³GHOD\W\SHFRGHV
GHOD\W\SHFRGH
'HÀQLWLRQ
'HVFULSWLRQ
,QHUWLDOGHOD\
$OOVFKHGXOHGHYHQWVRQWKHRXWSXWSDUDPHWHULQWKH9HU
LORJPRGHODUHUHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW
0RGLÀHGWUDQVSRUWGHOD\
$OOHYHQWVWKDWDUHVFKHGXOHGIRUWLPHVODWHUWKDQWKHQHZ
HYHQWRQWKHRXWSXWSDUDPHWHULQWKH9HULORJPRGHODUH
UHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW
3XUHWUDQVSRUWGHOD\
1RVFKHGXOHGHYHQWVRQWKHRXWSXWSDUDPHWHULQWKH9HU
LORJPRGHODUHUHPRYHGEHIRUHVFKHGXOLQJDQHZHYHQW³
WKHODVWHYHQWWREHVFKHGXOHGLVQRWQHFHVVDULO\WKHODVW
RQHWRRFFXU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBVXEWUDFWBORQJ
WIBVXEWUDFWBORQJ
6\QRSVLV
6XEWUDFWWZRELWLQWHJHUV
6\QWD[
WIBVXEWUDFWBORQJDRIBORZDRIBKLJKORZKLJK
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
LQW
DRIBORZ
3RLQWHUWROHDVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
DRIBKLJK
3RLQWHUWRPRVWVLJQLÀFDQWELWVRIÀUVWRSHUDQG
LQW
ORZ
/HDVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
LQW
KLJK
0RVWVLJQLÀFDQWELWVRIVHFRQGRSHUDQG
8VHWIBDGGBORQJWRDGGWZRELWLQWHJHUV
8VHWIBPXOWLSO\BORQJWRPXOWLSO\WZRELWLQWHJHUV
8VHWIBGLYLGHBORQJWRGLYLGHWZRELWLQWHJHUV
8VHWIBFRPSDUHBORQJWRFRPSDUHWZRELWLQWHJHUV
7KH7)URXWLQHWIBVXEWUDFWBORQJVKDOOVXEWUDFWWZRELWYDOXHV$IWHUFDOOLQJWIBVXEWUDFWBORQJWKHYDULDEOHV
XVHGWRSDVVWKHÀUVWRSHUDQGVKDOOFRQWDLQWKHUHVXOWVRIWKHVXEWUDFWLRQ7KHRSHUDQGVVKDOOEHDVVXPHGWREHLQ
WZR·V FRPSOHPHQW IRUP )LJXUH VKRZV WKH KLJK DQG ORZ ELWV RI WZR ORQJ LQWHJHUV DQG KRZ
WIBVXEWUDFWBORQJVKDOOVXEWUDFWWKHP
LQWHJHU LQWHJHULQWHJHU
LQWHJHU
KLJK
ORZ
LQWHJHU
KLJK
ORZ
KLJKELWV
ORZELWV
)LJXUH³6XEWUDFWLQJZLWKWIBVXEWUDFWBORQJ
7KHH[DPSOHSURJUDPIUDJPHQWVKRZQLQ)LJXUHXVHVWIBVXEWUDFWBORQJWRFDOFXODWHWKHUHODWLYHWLPHIURPWKH
FXUUHQWWLPHWRWKHQH[WHYHQWWLPHWKLVH[DPSOHDVVXPHVWKDWWKHFRGHLVH[HFXWHGGXULQJDPLVFWIDSSOLFDWLRQFDOO
ZLWKUHDVRQRIUHDVRQBURV\QFK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7KH WH[W PHVVDJH JHQHUDWHG E\ WKLV H[DPSOH LV VSOLW RII WKH LRBSULQWI FDOOV ,I GRQH LQ D VLQJOH LRBSULQWI WKH
VHFRQG FDOO WR WIBORQJWLPHBWRVWU ZRXOG RYHUZULWH WKH VWULQJ IURP WKH ÀUVW FDOO VLQFH WKH VWULQJ LV SODFHG LQ D
WHPSRUDU\EXIIHU
^
LQWFXUUORZFXUUKLJK
LQWUHODORZUHODKLJK
FXUUORZ WIBJHWORQJWLPHFXUUKLJK
LRBSULQWI$WWLPHVWIBORQJWLPHBWRVWUFXUUORZFXUUKLJK
LIWIBJHWQH[WORQJWLPHUHODORZUHODKLJK ^
WIBVXEWUDFWBORQJUHODORZUHODKLJKFXUUORZFXUUKLJK
LRBSULQWIUHODWLYHWLPHWRQH[WHYHQWLVV
WIBORQJWLPHBWRVWUUHODORZUHODKLJK
`
HOVH
SULQWIWKHUHDUHQRIXWXUHHYHQWV
`
)LJXUH³8VLQJWIBVXEWUDFWBORQJ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBV\QFKURQL]HWIBLV\QFKURQL]H
WIBV\QFKURQL]HWIBLV\QFKURQL]H
6\QRSVLV
6\QFKURQL]HWRHQGRIVLPXODWLRQWLPHVWHS
6\QWD[
WIBV\QFKURQL]H
WIBLV\QFKURQL]HLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBURV\QFKURQL]HIRUUHDGRQO\V\QFKURQL]DWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
8VHWIBJHWQH[WORQJWLPHWRJHWQH[WWLPHDWZKLFKDVLPXODWLRQHYHQWLVVFKHGXOHG
7KH 7) URXWLQHV WIBV\QFKURQL]H DQG WIBLV\QFKURQL]H VKDOO VFKHGXOH D FDOOEDFN WR WKH PLVFWI DSSOLFDWLRQ
DVVRFLDWHG ZLWK WKH FXUUHQW LQVWDQFH RU D VSHFLÀF LQVWDQFH RI D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7KH PLVFWI
DSSOLFDWLRQVKDOOEHFDOOHGZLWKDUHDVRQRIUHDVRQBV\QFKDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPHVWHS
7KHURXWLQHVWIBV\QFKURQL]HDQGWIBURV\QFKURQL]HKDYHGLIIHUHQWIXQFWLRQDOLW\7KHURXWLQH WIBV\QFKURQL]H
VKDOOFDOOWKHDVVRFLDWHGPLVFWIDSSOLFDWLRQDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPHVWHSZLWKUHDVRQBV\QFKDQGWKH
PLVFWIDSSOLFDWLRQVKDOOEHDOORZHGWRVFKHGXOHDGGLWLRQDOVLPXODWLRQHYHQWVXVLQJURXWLQHVVXFKDVWIBVWUGHOSXWS
7KHURXWLQHWIBURV\QFKURQL]HVKDOOFDOOWKHDVVRFLDWHGPLVFWIDSSOLFDWLRQDWWKHHQGRIWKHFXUUHQWVLPXODWLRQWLPH
VWHS ZLWK UHDVRQBURV\QFK DQG WKH 3/, VKDOO QRW EH DOORZHG WR VFKHGXOH DQ\ QHZ HYHQWV7KLV JXDUDQWHHV WKDW DOO
VLPXODWLRQHYHQWVIRUWKHFXUUHQWWLPHDUHFRPSOHWHG&DOOVWRURXWLQHVVXFKDVWIBVWUGHOSXWSDQGWIBVHWGHOD\DUH
LOOHJDOGXULQJSURFHVVLQJRIWKHPLVFWIDSSOLFDWLRQZLWKUHDVRQUHDVRQBURV\QFK
7KHURXWLQHWIBJHWQH[WORQJWLPHVKDOORQO\UHWXUQWKHQH[WVLPXODWLRQWLPHIRUZKLFKDQHYHQWLVVFKHGXOHGZKHQ
XVHGLQFRQMXQFWLRQZLWKWKHURXWLQHVWIBURV\QFKURQL]HDQGWIBLURV\QFKURQL]H
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBWHVWSYFBÁDJWIBLWHVWSYFBÁDJ
WIBWHVWSYFBÁDJWIBLWHVWSYFBÁDJ
6\QRSVLV
7HVWSDUDPHWHUYDOXHFKDQJHIODJV
6\QWD[
WIBWHVWSYFBIODJQSDUDP
WIBLWHVWSYFBIODJQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHYDOXHRIWKHVDYHGSYFÁDJ
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHURU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
8VHWIBDV\QFKRQRUWIBLDV\QFKRQWRHQDEOHSYFÁDJV
8VHWIBJHWSFKDQJHRUWIBLJHWSFKDQJHWRJHWWKHLQGH[QXPEHURIWKHSDUDPHWHUWKDWFKDQJHG
8VHWIBFRS\SYFBÁDJRUWIBLFRS\SYFBÁDJWRFRS\DSYFÁDJWRWKHVDYHGSYFÁDJ
8VHWIBPRYHSYFBÁDJRUWIBLPRYHSYFBÁDJWRPRYHDSYFÁDJWRWKHVDYHGSYFÁDJ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH 7) URXWLQHV WIBWHVWSYFBÁDJ DQG WIBLWHVWSYFBÁDJ VKDOO UHWXUQ YDOXH RI WKH VDYHG SYF ÁDJ 7KH DUJXPHQW
QSDUDPVKDOOEHWKHLQGH[QXPEHURIDSDUDPHWHULQDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7DVNIXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
,IQSDUDPLVWKHQDOOSDUDPHWHUSYFÁDJVVKDOOEHWHVWHGDQGWKHORJLFDO25RIDOOVDYHGÁDJVUHWXUQHG
39&ÁDJVVKDOOEHXVHGWRLQGLFDWHZKHWKHUDSDUWLFXODUXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQSDUDPHWHUKDVFKDQJHG
YDOXH(DFKSDUDPHWHUVKDOOKDYHWZRSYFÁDJVDFXUUHQWSYFÁDJZKLFKVKDOOEHVHWE\DVRIWZDUHSURGXFWZKHQWKH
FKDQJHRFFXUVDQGDVDYHGSYFÁDJZKLFKVKDOOEHFRQWUROOHGE\WKHXVHU
127(³39&ÁDJVVKDOOQRWEHVHWE\WKHVRIWZDUHSURGXFWXQWLOWIBDV\QFKRQRUWIBLDV\QFKRQKDVEHHQFDOOHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBWH[W
WIBWH[W
6\QRSVLV
6WRUHHUURUPHVVDJHLQIRUPDWLRQ
6\QWD[
WIBWH[WPHVVDJHDUJDUJ
7\SH
5HWXUQV
'HVFULSWLRQ
YRLG
$UJXPHQWV
7\SH
1DPH
TXRWHGVWULQJRU
FKDU
PHVVDJH
DUJDUJ
5HODWHG
URXWLQHV
'HVFULSWLRQ
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
ZLWKDPHVVDJHWREHVWRUHG
2QHWRÀYHDUJXPHQWVXVHGLQWKHIRUPDWFRQWUROVWULQJWKH
W\SHRIHDFKDUJXPHQWVKRXOGEHFRQVLVWHQWZLWKKRZLWLV
XVHGLQWKHPHVVDJHVWULQJ
8VHWIBPHVVDJHWRGLVSOD\WKHVWRUHGHUURUPHVVDJH
7KH7)URXWLQHWIBWH[WVKDOOVWRUHWH[WPHVVDJHVDERXWDQHUURULQDEXIIHUZKLFKZLOOEHSULQWHGZKHQWKHURXWLQH
WIBPHVVDJHLVFDOOHG7KHURXWLQHVKDOOSURYLGHDPHWKRGIRUD3/,DSSOLFDWLRQWRVWRUHLQIRUPDWLRQDERXWRQHRU
PRUHHUURUVEHIRUHLWFDOOVWKHWIBPHVVDJH7)URXWLQH7KLVDOORZVDQDSSOLFDWLRQWRSURFHVVDOORIDURXWLQHVXFKDV
V\QWD[ FKHFNLQJ EHIRUH FDOOLQJ WIBPHVVDJH ZKLFK FDQ EH VHW WR DERUW SURFHVVLQJ DIWHU SULQWLQJ PHVVDJHV $Q
DSSOLFDWLRQVKDOOEHDEOHWRFDOOWIBWH[WDQ\QXPEHURIWLPHVEHIRUHLWFDOOVWIBPHVVDJH
:KHQ WKH DSSOLFDWLRQ FDOOV WIBPHVVDJH WKH LQIRUPDWLRQ VWRUHG E\ WIBWH[W VKDOO EH GLVSOD\HG EHIRUH WKH
LQIRUPDWLRQ LQ WKH FDOO WR WIBPHVVDJH (DFK FDOO WR WIBPHVVDJH VKDOO FOHDU WKH EXIIHU ZKHUH WIBWH[W VWRUHV LWV
LQIRUPDWLRQ
7KHPHVVDJHDUJXPHQWLVDXVHUGHÀQHGFRQWUROVWULQJFRQWDLQLQJWKHPHVVDJHWREHGLVSOD\HG7KHFRQWUROVWULQJ
XVHVWKHVDPHIRUPDWWLQJFRQWUROVDVWKH&SULQWIIXQFWLRQIRUH[DPSOHG7KHPHVVDJHVKDOOXVHXSWRD
PD[LPXP RI ÀYH YDULDEOH DUJXPHQWV 7KHUH VKDOO EH QR OLPLW WR WKH OHQJWK RI D YDULDEOH DUJXPHQW )RUPDWWLQJ
FKDUDFWHUVVXFKDV?Q?W?E?IRU?UGRQRWQHHGWREHLQFOXGHGLQWKHPHVVDJH³WKHVRIWZDUHSURGXFWVKDOO
DXWRPDWLFDOO\IRUPDWHDFKPHVVDJH
$QH[DPSOHRIXVLQJWIBWH[WDQGWIBPHVVDJHFDOOVDQGWKHRXWSXWJHQHUDWHGIROORZ1RWHWKDWWKHIRUPDWRIWKH
RXWSXWVKDOOEHGHÀQHGE\WKHVRIWZDUHSURGXFW
&DOOLQJWIBWH[WDQGWIBPHVVDJHZLWKWKHDUJXPHQWV
WIBWH[W$UJXPHQWQXPEHUGDUJQXP
WIBPHVVDJH(55B(55258VHU7)$5*
LVLOOHJDOLQWDVNVWDVNQDPH
0LJKWSURGXFHWKHRXWSXW
(5525
6HFWLRQ
$UJXPHQWQXPEHULVLOOHJDOLQWDVN>8VHU7)$5*@
XVHUWDVN
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBW\SHSWIBLW\SHS
WIBW\SHSWIBLW\SHS
6\QRSVLV
*HWDSDUDPHWHUW\SH
6\QWD[
WIBW\SHSQSDUDP
WIBLW\SHSQSDUDPLQVWDQFHBS
7\SH
5HWXUQV
LQW
$SUHGHÀQHGLQWHJHUFRQVWDQWUHSUHVHQWLQJWKH9HULORJ+'/GDWDW\SHIRUWKHSDUDPHWHU
7\SH
1DPH
'HVFULSWLRQ
LQW
QSDUDP
,QGH[QXPEHURIWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
SDUDPHWHU
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHVWIBW\SHSDQGWIBLW\SHSVKDOOUHWXUQDQLQWHJHUFRQVWDQWLQGLFDWLQJWKHW\SHRIDSDUDPHWHUIRUWKH
FXUUHQWLQVWDQFHRUDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ7KHLQWHJHUFRQVWDQWVVKDOOEHDV
VKRZQLQ7DEOH
7DEOH³3UHGHÀQHGWIBW\SHSFRQVWDQWV
3UHGHÀQHGFRQVWDQW
'HVFULSWLRQ
WIBQXOOSDUDP
7KHSDUDPHWHULVDQXOOH[SUHVVLRQZKHUHQRWH[WKDVEHHQJLYHQDVWKHSDUDP
HWHURUQSDUDPLVRXWRIUDQJH
WIBVWULQJ
7KHSDUDPHWHULVDOLWHUDOVWULQJ
WIBUHDGRQO\
7KHSDUDPHWHULVDYHFWRUH[SUHVVLRQZLWKDYDOXHWKDWFDQEHUHDGEXWQRWZULWWHQ
WIBUHDGZULWH
7KHSDUDPHWHULVDYHFWRUH[SUHVVLRQZLWKDYDOXHWKDWFDQEHUHDGDQGZULWWHQ
WIBUHDGRQO\UHDO
7KHSDUDPHWHULVDUHDOQXPEHUH[SUHVVLRQZLWKDYDOXHWKDWFDQEHUHDGEXWQRWZULWWHQ
WIBUHDGZULWHUHDO
7KHSDUDPHWHULVDUHDOQXPEHUH[SUHVVLRQZLWKDYDOXHWKDWFDQEHUHDGDQGZULW
WHQ
³ $UHDGRQO\H[SUHVVLRQVKDOOEHDQ\H[SUHVVLRQWKDWZRXOGEHLOOHJDODVDOHIWKDQGVLGHFRQVWUXFWLQD9HULORJ
+'/SURFHGXUDODVVLJQPHQWHJDQH[SUHVVLRQXVLQJQHWGDWDW\SHVRUHYHQWGDWDW\SHV
³ $UHDGZULWHH[SUHVVLRQVKDOOEHDQ\H[SUHVVLRQWKDWZRXOGEHOHJDODVDOHIWKDQGVLGHFRQVWUXFWLQD9HULORJ
+'/SURFHGXUDODVVLJQPHQWVHJDQH[SUHVVLRQXVLQJUHJLQWHJHUWLPHRUUHDOGDWDW\SHV
7KH DUJXPHQW QSDUDP VKDOO EH WKH LQGH[ QXPEHU RI D SDUDPHWHU LQ D XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ 7DVN
IXQFWLRQSDUDPHWHULQGH[QXPEHULQJVKDOOSURFHHGIURPOHIWWRULJKWZLWKWKHOHIWPRVWSDUDPHWHUEHLQJQXPEHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBXQVFDOHBORQJGHOD\
WIBXQVFDOHBORQJGHOD\
6\QRSVLV
&RQYHUWDGHOD\IURPLQWHUQDOVLPXODWLRQWLPHXQLWVWRWKHWLPHVFDOHRIDSDUWLFXODUPRGXOH
6\QWD[
WIBXQVFDOHBORQJGHOD\LQVWDQFHBSGHOD\BORGHOD\BKL
DRIBGHOD\BORDRIBGHOD\BKL
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
LQW
GHOD\BOR
/HDVWVLJQLÀFDQWULJKWPRVWELWVRIWKHGHOD\WREHFRQ
YHUWHG
LQW
GHOD\BKL
0RVWVLJQLÀFDQWOHIWPRVWELWVRIWKHGHOD\WREHFRQ
YHUWHG
LQW
DRIBGHOD\BOR
3RLQWHUWRDYDULDEOHWRVWRUHWKHOHDVWVLJQLÀFDQWULJKW
PRVWELWVRIWKHFRQYHUVLRQUHVXOW
LQW
DRIBGHOD\BKL
3RLQWHUWRDYDULDEOHWRVWRUHWKHPRVWVLJQLÀFDQWOHIWPRVW
ELWVRIWKHFRQYHUVLRQUHVXOW
8VHWIBXQVFDOHBUHDOGHOD\WRXQVFDOHUHDOQXPEHUGHOD\V
8VHWIBVFDOHBORQJGHOD\WRFRQYHUWDGHOD\WRWKHVLPXODWLRQWLPHXQLW
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHWIBXQVFDOHBORQJGHOD\VKDOOFRQYHUWDORQJELWLQWHJHUGHOD\H[SUHVVHGLQLQWHUQDOVLPXODWLRQ
WLPH LQWR WKH WLPH XQLWV RI WKH PRGXOH FRQWDLQLQJ WKH XVHUGHÀQHG V\VWHP WDVN RU IXQFWLRQ UHIHUHQFHG E\ WKH
LQVWDQFHBSSRLQWHU7KHDUJXPHQWDRIBGHOD\BORDQGDRIBGHOD\BKLVKDOOFRQWDLQWKHDGGUHVVRIWKHFRQYHUWHGGHOD\
UHWXUQHGE\WKHURXWLQH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WIBXQVFDOHBUHDOGHOD\
WIBXQVFDOHBUHDOGHOD\
6\QRSVLV
&RQYHUWDGHOD\H[SUHVVHGLQLQWHUQDOVLPXODWLRQWLPHXQLWVWRWKHWLPHVFDOHRIDSDUWLFXODUPRGXOH
6\QWD[
WIBXQVFDOHBUHDOGHOD\LQVWDQFHBSUHDOGHOD\DRIBUHDOGHOD\
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
'HVFULSWLRQ
FKDU
LQVWDQFHBS
3RLQWHUWRDVSHFLÀFLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVN
RUIXQFWLRQ
GRXEOH
GHOD\
GRXEOH
DRIBUHDOGHOD\
9DOXHRIWKHGHOD\WREHFRQYHUWHG
3RLQWHUWRDYDULDEOHWRVWRUHWKHFRQYHUVLRQUHVXOW
8VHWIBXQVFDOHBORQJGHOD\WRXQVFDOHELWLQWHJHUGHOD\V
8VHWIBVFDOHBUHDOGHOD\WRFRQYHUWDGHOD\WRWKHVLPXODWLRQWLPHXQLW
8VHWIBJHWLQVWDQFHWRJHWDSRLQWHUWRDQLQVWDQFHRIDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQ
7KH7)URXWLQHWIBXQVFDOHBUHDOGHOD\VKDOOFRQYHUWDGRXEOHSUHFLVLRQGHOD\H[SUHVVHGLQLQWHUQDOVLPXODWLRQWLPH
LQWRWKHWLPHXQLWVRIWKHPRGXOHFRQWDLQLQJWKHXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQUHIHUHQFHGE\WKHLQVWDQFHBS
SRLQWHU7KHDUJXPHQWDRIBUHDOGHOD\VKDOOFRQWDLQWKHDGGUHVVRIWKHFRQYHUWHGGHOD\UHWXUQHGE\WKHURXWLQH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
WIBZDUQLQJ
WIBZDUQLQJ
6\QRSVLV
5HSRUWDZDUQLQJPHVVDJH
6\QWD[
WIBZDUQLQJIRUPDWDUJDUJ
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
YRLG
7\SH
1DPH
TXRWHGVWULQJRU
FKDU
IRUPDW
DUJDUJ
5HODWHG
URXWLQHV
'HVFULSWLRQ
$TXRWHGFKDUDFWHUVWULQJRUSRLQWHUWRDFKDUDFWHUVWULQJ
WKDWFRQWUROVWKHPHVVDJHWREHZULWWHQ
2QHWRÀYHDUJXPHQWVXVHGLQWKHIRUPDWFRQWUROVWULQJWKH
W\SHRIHDFKDUJXPHQWVKRXOGEHFRQVLVWHQWZLWKKRZLWLV
XVHGLQWKHIRUPDWVWULQJ
8VHWIBPHVVDJHWRZULWHZDUQLQJPHVVDJHVZLWKDGGLWLRQDOIRUPDWFRQWURO
8VHWIBHUURUWRZULWHDZDUQLQJPHVVDJH
8VHLRBSULQWIRULRBPFGSULQWIWRZULWHDIRUPDWWHGPHVVDJH
7KH 7) URXWLQH WIBZDUQLQJ VKDOO SURYLGH D ZDUQLQJ UHSRUWLQJ PHFKDQLVP FRPSDWLEOH ZLWK ZDUQLQJ PHVVDJHV
JHQHUDWHGE\WKHVRIWZDUHSURGXFW
³ 7KHIRUPDWFRQWUROVWULQJVKDOOXVHWKHVDPHIRUPDWWLQJFRQWUROVDVWKH&SULQWIIXQFWLRQIRUH[DPSOHG
³ 7KHPD[LPXPQXPEHURIDUJXPHQWVWKDWVKDOOEHXVHGLQWKHIRUPDWFRQWUROVWULQJLV
³ 7KHORFDWLRQLQIRUPDWLRQÀOHQDPHDQGOLQHQXPEHURIWKHFXUUHQWLQVWDQFHRIWKHXVHUGHÀQHGV\VWHPWDVNRU
IXQFWLRQVKDOOEHDSSHQGHGWRWKHPHVVDJHXVLQJDIRUPDWFRPSDWLEOHZLWKHUURUPHVVDJHVJHQHUDWHGE\WKH
VRIWZDUHSURGXFW
³ 7KHPHVVDJHVKDOOEHZULWWHQWRERWKWKHVWDQGDUGRXWSXWWH[WZLQGRZDQGWKHRXWSXWORJÀOHRIWKHSURGXFW
7KHWIBZDUQLQJURXWLQHVKDOOQRWDERUWSDUVLQJRUFRPSLODWLRQRI9HULORJ+'/VRXUFHFRGH
6HFWLRQ
,(((
6WG
WIBZULWHBVDYH
WIBZULWHBVDYH
6\QRSVLV
$SSHQGDEORFNRIGDWDWRDVDYHILOH
6\QWD[
WIBZULWHBVDYHEORFNSWUEORFNOHQ
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
1RQ]HURYDOXHLIVXFFHVVIXO]HURLIDQHUURULVHQFRXQWHUHG
7\SH
1DPH
'HVFULSWLRQ
FKDU
EORFNSWU
3RLQWHUWRWKHILUVWE\WHRIWKHEORFNRIGDWDWREHVDYHG
LQW
EORFNOHQ
1XPEHURIE\WHVDUHWREHVDYHG
8VHWIBUHDGBUHVWRUHWRUHWULHYHWKHGDWDVDYHG
7KH7)URXWLQHWIBZULWHBVDYHVKDOOZULWHXVHUGHÀQHGGDWDWRWKHHQGRIDVDYHÀOHEHLQJZULWWHQE\WKHVDYHEXLOW
LQV\VWHPWDVN7KLVURXWLQHVKDOOEHFDOOHGIURPWKHPLVFWIDSSOLFDWLRQZKHQPLVFWILVLQYRNHGZLWKUHDVRQBVDYH
7KHDUJXPHQWEORFNSWUVKDOOEHDSRLQWHUWRDQDOORFDWHGEORFNRIPHPRU\FRQWDLQLQJWKHGDWDWREHVDYHG
7KHDUJXPHQWEORFNOHQVKDOOEHWKHOHQJWKLQE\WHVRIWKHDOORFDWHGEORFNRIPHPRU\1RWHWKDWH[DFWO\DVPDQ\E\WHV
VKDOOEHUHVWRUHGXVLQJWIBUHDGBUHVWRUHDVZHUHZULWWHQZLWKWIBZULWHBVDYH
6HFWLRQ
,(((
6WG
6HFWLRQ
8VLQJ93,URXWLQHV
6HFWLRQVDQGVSHFLI\WKH9HULORJ3URFHGXUDO,QWHUIDFH93,IRUWKH9HULORJ+'/7KLVVHFWLRQGHVFULEHVKRZ
WKH93,URXWLQHVDUHXVHGDQG6HFWLRQGHÀQHVHDFKRIWKHURXWLQHVLQDOSKDEHWLFDORUGHU
7KH93,LQWHUIDFH
7KH93, LQWHUIDFH SURYLGHV URXWLQHV WKDW DOORZ9HULORJ SURGXFW XVHUV WR DFFHVV LQIRUPDWLRQ FRQWDLQHG LQ D9HULORJ
GHVLJQDQGWKDWDOORZIDFLOLWLHVWRLQWHUDFWG\QDPLFDOO\ZLWKDVRIWZDUHSURGXFW$SSOLFDWLRQVRIWKH93,LQWHUIDFHFDQ
LQFOXGHGHOD\FDOFXODWRUVDQGDQQRWDWRUVFRQQHFWLQJD9HULORJVLPXODWRUZLWKRWKHUVLPXODWLRQDQG&$(V\VWHPVDQG
FXVWRPL]HGGHEXJJLQJWDVNV
7KHIXQFWLRQVRIWKH93,LQWHUIDFHFDQEHJURXSHGLQWRWZRPDLQDUHDV
³ '\QDPLFVRIWZDUHSURGXFWLQWHUDFWLRQXVLQJ93,FDOOEDFNV
³ $FFHVVWR9HULORJ+'/REMHFWVDQGVLPXODWLRQVSHFLÀFREMHFWV
93,FDOOEDFNV
'\QDPLFVRIWZDUHSURGXFWLQWHUDFWLRQVKDOOEHDFFRPSOLVKHGZLWKDUHJLVWHUHGFDOOEDFNPHFKDQLVP93,FDOOEDFNV
VKDOO DOORZ D XVHU WR UHTXHVW WKDW D9HULORJ +'/ VRIWZDUH SURGXFW VXFK DV D ORJLF VLPXODWRU FDOO D XVHUGHÀQHG
DSSOLFDWLRQ ZKHQ D VSHFLÀF DFWLYLW\ RFFXUV )RU H[DPSOH WKH XVHU FDQ UHTXHVW WKDW WKH XVHU DSSOLFDWLRQ
P\BPRQLWRU EH FDOOHG ZKHQ D SDUWLFXODU QHW FKDQJHV YDOXH RU WKDW P\BFOHDQXS EH FDOOHG ZKHQ WKH
VRIWZDUHSURGXFWH[HFXWLRQKDVFRPSOHWHG
7KH93, FDOOEDFN IDFLOLW\ VKDOO SURYLGH WKH XVHU ZLWK WKH PHDQV WR LQWHUDFW G\QDPLFDOO\ ZLWK D VRIWZDUH SURGXFW
GHWHFWLQJ WKH RFFXUUHQFH RI YDOXH FKDQJHV DGYDQFHPHQW RI WLPH HQG RI VLPXODWLRQ HWF 7KLV IHDWXUH DOORZV
DSSOLFDWLRQV VXFK DV LQWHJUDWLRQ ZLWK RWKHU VLPXODWLRQ V\VWHPV VSHFLDOL]HG WLPLQJ FKHFNV FRPSOH[ GHEXJJLQJ
IHDWXUHVHWF
7KHUHDVRQVIRUZKLFKFDOOEDFNVVKDOOEHSURYLGHGFDQEHVHSDUDWHGLQWRIRXUFDWHJRULHV
³ 6LPXODWLRQHYHQWHJDYDOXHFKDQJHRQDQHWRUDEHKDYLRUDOVWDWHPHQWH[HFXWLRQ
³ 6LPXODWLRQWLPHHJWKHHQGRIDWLPHTXHXHRUDIWHUFHUWDLQDPRXQWRIWLPH
³ 6LPXODWRUDFWLRQIHDWXUHHJWKHHQGRIFRPSLOHHQGRIVLPXODWLRQUHVWDUWRUHQWHULQWHUDFWLYHPRGH
³ 8VHUGHÀQHGV\VWHPWDVNRUIXQFWLRQH[HFXWLRQ
93,FDOOEDFNVVKDOOEHUHJLVWHUHGE\WKHXVHUZLWKWKHIXQFWLRQV YSLBUHJLVWHUBFEDQG YSLBUHJLVWHUBV\VWI7KHVH
URXWLQHVLQGLFDWHWKHVSHFLÀFUHDVRQIRUWKHFDOOEDFNWKHDSSOLFDWLRQWREHFDOOHGDQGZKDWV\VWHPDQGXVHUGDWDVKDOO
EH SDVVHG WR WKH FDOOEDFN DSSOLFDWLRQ ZKHQ WKH FDOOEDFN RFFXUV $ IDFLOLW\ LV DOVR SURYLGHG WR FDOO WKH FDOOEDFN
IXQFWLRQVZKHQD9HULORJ+'/SURGXFWLVÀUVWLQYRNHG$SULPDU\XVHRIWKLVIDFLOLW\VKDOOEHIRUUHJLVWUDWLRQRIXVHU
GHÀQHGV\VWHPWDVNVDQGIXQFWLRQV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
93,DFFHVVWR9HULORJ+'/REMHFWVDQGVLPXODWLRQREMHFWV
$FFHVVLEOH9HULORJ+'/REMHFWVDQGVLPXODWLRQREMHFWVDQGWKHLUUHODWLRQVKLSVDQGSURSHUWLHVDUHGHVFULEHGXVLQJGDWD
PRGHOGLDJUDPV7KHVHGLDJUDPVDUHSUHVHQWHGLQ7KHGDWDGLDJUDPVLQGLFDWHWKHURXWLQHVDQGFRQVWDQWVWKDWDUH
UHTXLUHGWRDFFHVVDQGPDQLSXODWHREMHFWVZLWKLQDQDSSOLFDWLRQHQYLURQPHQW$QDVVRFLDWHGVHWRIURXWLQHVWRDFFHVV
WKHVHREMHFWVLVGHÀQHGLQ6HFWLRQ
7KH93,LQWHUIDFHDOVRLQFOXGHVDVHWRIXWLOLW\URXWLQHVIRUIXQFWLRQVVXFKDVKDQGOHFRPSDULVRQÀOHKDQGOLQJDQG
UHGLUHFWHGSULQWLQJZKLFKDUHGHVFULEHGLQ
93,URXWLQHVSURYLGHDFFHVVWRREMHFWVLQDQ LQVWDQWLDWHG9HULORJGHVLJQ$QLQVWDQWLDWHGGHVLJQLVRQHZKHUHHDFK
LQVWDQFHRIDQREMHFWLVXQLTXHO\DFFHVVLEOH)RULQVWDQFHLIDPRGXOH PFRQWDLQVZLUH ZDQGLVLQVWDQWLDWHGWZLFHDV
PDQGPWKHQPZDQGPZDUHWZRGLVWLQFWREMHFWVHDFKZLWKLWVRZQVHWRIUHODWHGREMHFWVDQGSURSHUWLHV
7KH 93, LQWHUIDFH LV GHVLJQHG DV D VLPXODWLRQ LQWHUIDFH ZLWK DFFHVV WR ERWK 9HULORJ +'/ REMHFWV DQG VSHFLÀF
VLPXODWLRQREMHFWV7KLVVLPXODWLRQLQWHUIDFHLVGLIIHUHQWIURPDKLHUDUFKLFDOODQJXDJHLQWHUIDFHZKLFKZRXOGSURYLGH
DFFHVVWR+'/LQIRUPDWLRQEXWZRXOGQRWSURYLGHLQIRUPDWLRQDERXWVLPXODWLRQREMHFWV
(UURUKDQGOLQJ
7RGHWHUPLQHLIDQHUURURFFXUUHGWKHURXWLQHYSLBFKNBHUURUVKDOOEHSURYLGHG7KHYSLBFKNBHUURUURXWLQHVKDOO
UHWXUQDQRQ]HURYDOXHLIDQHUURURFFXUUHGLQWKHSUHYLRXVO\FDOOHG93,URXWLQH&DOOEDFNVFDQEHVHWXSIRUZKHQDQ
HUURURFFXUVDVZHOO7KHYSLBFKNBHUURUURXWLQHFDQSURYLGHGHWDLOHGLQIRUPDWLRQDERXWWKHHUURU
93,REMHFWFODVVLÀFDWLRQV
93, REMHFWV DUH FODVVLÀHG ZLWK GDWD PRGHO GLDJUDPV 7KHVH GLDJUDPV SURYLGH D JUDSKLFDO UHSUHVHQWDWLRQ RI WKRVH
REMHFWV ZLWKLQ D 9HULORJ GHVLJQ WR ZKLFK WKH 93, URXWLQHV VKDOO SURYLGH DFFHVV 7KH GLDJUDPV VKDOO VKRZ WKH
UHODWLRQVKLSVEHWZHHQREMHFWVDQGWKHSURSHUWLHVRIHDFKREMHFW2EMHFWVZLWKVXIÀFLHQWFRPPRQDOLW\DUHSODFHGLQ
JURXSV*URXSUHODWLRQVKLSVDQGSURSHUWLHVDSSO\WRDOOWKHREMHFWVLQWKHJURXS
$VDQH[DPSOHWKLVVLPSOLÀHGGLDJUDPVKRZVWKDWWKHUHLVDRQHWRPDQ\UHODWLRQVKLSVIURPREMHFWVRIW\SHPRGXOH
WRREMHFWVRIW\SH QHWDQGD RQHWRRQHUHODWLRQVKLSIURPREMHFWVRIW\SH QHWWRREMHFWVRIW\SH PRGXOH2EMHFWVRI
W\SH QHW KDYH SURSHUWLHV YSL1DPH YSL9HFWRU DQG YSL6L]H ZLWK & GDWD W\SHV VWULQJ %RROHDQ DQG LQWHJHU
UHVSHFWLYHO\
PRGXOH
QHW
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!YHFWRU
ERROYSL9HFWRU
!VL]H
LQWYSL6L]H
7KH93,REMHFWGDWDGLDJUDPVDUHSUHVHQWHGLQ
$FFHVVLQJREMHFWUHODWLRQVKLSVDQGSURSHUWLHV
7KH93,LQWHUIDFHGHÀQHVWKH&GDWDW\SHRIYSL+DQGOH$OOREMHFWVDUHPDQLSXODWHGYLDDYSL+DQGOHYDULDEOH2EMHFW
KDQGOHV FDQ EH DFFHVVHG IURP D UHODWLRQVKLS ZLWK DQRWKHU REMHFW RU IURP D KLHUDUFKLFDO QDPH DV WKH IROORZLQJ
H[DPSOHGHPRQVWUDWHV
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
YSL+DQGOHQHW
QHW YSLBKDQGOHBE\BQDPH´WRSPZµ18//
7KLVH[DPSOHFDOOUHWULHYHVDKDQGOHWRZLUH WRSPZDQGDVVLJQVLWWRWKH YSL+DQGOHYDULDEOH QHW7KH 18//
VHFRQGDUJXPHQWGLUHFWVWKHURXWLQHWRVHDUFKIRUWKHQDPHIURPWKHWRSOHYHORIWKHGHVLJQ
7KH93, LQWHUIDFH SURYLGHV JHQHULF IXQFWLRQV IRU WDVNV VXFK DV WUDYHUVLQJ UHODWLRQVKLSV DQG GHWHUPLQLQJ SURSHUW\
YDOXHV2QHWRRQHUHODWLRQVKLSVDUHWUDYHUVHGZLWKURXWLQHYSLBKDQGOH,QWKHIROORZLQJH[DPSOHWKHPRGXOHWKDW
FRQWDLQVQHWLVGHULYHGIURPDKDQGOHWRWKDWQHW
YSL+DQGOHQHWPRG
QHW YSLBKDQGOHBE\BQDPH´WRSPZµ18//
PRG YSLBKDQGOHYSL0RGXOHQHW
7KHFDOOWRYSLBKDQGOHLQWKHDERYHH[DPSOHVKDOOUHWXUQDKDQGOHWRPRGXOHWRSP
3URSHUWLHVRIREMHFWVVKDOOEHGHULYHGZLWKURXWLQHVLQWKHYSLBJHWIDPLO\7KHURXWLQH YSLBJHWUHWXUQVLQWHJHUDQG
%RROHDQSURSHUWLHV7KHURXWLQHYSLBJHWBVWUDFFHVVHVVWULQJSURSHUWLHV7RUHWULHYHDSRLQWHUWRWKHIXOOKLHUDUFKLFDO
QDPHRIWKHREMHFWUHIHUHQFHGE\KDQGOHPRGWKHIROORZLQJFDOOZRXOGEHPDGH
FKDUQDPH YSLBJHWBVWUYSL)XOO1DPHPRG
,QWKHDERYHH[DPSOHFKDUDFWHUSRLQWHUQDPHVKDOOQRZSRLQWWRWKHVWULQJ´WRSPµ
2QHWRPDQ\UHODWLRQVKLSVDUHWUDYHUVHGZLWKDQLWHUDWLRQPHFKDQLVP7KHURXWLQHYSLBLWHUDWHFUHDWHVDQREMHFWRI
W\SH YSL,WHUDWRU ZKLFK LV WKHQ SDVVHG WR WKH URXWLQH YSLBVFDQ WR WUDYHUVH WKH GHVLUHG REMHFWV ,Q WKH IROORZLQJ
H[DPSOHHDFKQHWLQPRGXOHWRSPLVGLVSOD\HG
YSL+DQGOHLWU
LWU YSLBLWHUDWHYSL1HWPRG
ZKLOHQHW YSLBVFDQLWU
YSLBSULQWI´?WV?QµYSLBJHWBVWUYSL)XOO1DPHQHW
$VWKHDERYHH[DPSOHVLOOXVWUDWHWKHURXWLQHQDPLQJFRQYHQWLRQLVD ¶YSL·SUHÀ[ZLWK ¶B·ZRUGGHOLPLWHUVZLWKWKH
H[FHSWLRQRIFDOOEDFNUHODWHGGHÀQHGYDOXHVZKLFKXVHWKH¶FE·SUHÀ[0DFURGHÀQHGW\SHVDQGSURSHUWLHVKDYHWKH
¶YSL·SUHÀ[DQGWKH\XVHFDSLWDOL]DWLRQIRUZRUGGHOLPLWHUV
7KHURXWLQHVIRUWUDYHUVLQJ9HULORJ+'/VWUXFWXUHVDQGDFFHVVLQJREMHFWVDUHGHVFULEHGLQ6HFWLRQ
'HOD\VDQGYDOXHV
0RVWSURSHUWLHVDUHRIW\SHLQWHJHU%RROHDQRUVWULQJ'HOD\DQGORJLFYDOXHSURSHUWLHVKRZHYHUDUHPRUHFRPSOH[
DQGUHTXLUHVSHFLDOL]HGURXWLQHVDQGDVVRFLDWHGVWUXFWXUHV7KHURXWLQHV YSLBJHWBGHOD\VDQG YSLBSXWBGHOD\VXVH
VWUXFWXUHSRLQWHUVZKHUHWKHVWUXFWXUHFRQWDLQVWKHSHUWLQHQWLQIRUPDWLRQDERXWGHOD\V6LPLODUO\VLPXODWLRQYDOXHV
DUHDOVRKDQGOHGZLWKWKHURXWLQHVYSLBJHWBYDOXHDQGYSLBSXWBYDOXHDORQJZLWKDQDVVRFLDWHGVHWRIVWUXFWXUHV
7KHURXWLQHVDQG&VWUXFWXUHVIRUKDQGOLQJGHOD\VDQGORJLFYDOXHVDUHSUHVHQWHGLQ6HFWLRQ
/LVWRI93,URXWLQHVE\IXQFWLRQDOFDWHJRU\
7KH93,URXWLQHVFDQEHGLYLGHGLQWRJURXSVEDVHGRQSULPDU\IXQFWLRQDOLW\
³
³
³
³
³
³
93,URXWLQHVIRUVLPXODWLRQUHODWHGFDOOEDFNV
93,URXWLQHVIRUV\VWHPWDVNIXQFWLRQFDOOEDFNV
93,URXWLQHVIRUWUDYHUVLQJ9HULORJ+'/KLHUDUFK\
93,URXWLQHVIRUDFFHVVLQJSURSHUWLHVRIREMHFWV
93,URXWLQHVIRUDFFHVVLQJREMHFWVIURPSURSHUWLHV
93,URXWLQHVIRUGHOD\SURFHVVLQJ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
³ 93,URXWLQHVIRUORJLFDQGVWUHQJWKYDOXHSURFHVVLQJ
³ 93,URXWLQHVIRUVLPXODWLRQWLPHSURFHVVLQJ
³ 93,URXWLQHVIRUPLVFHOODQHRXVXWLOLWLHV
7DEOHVWKURXJKOLVWWKH93,URXWLQHVE\PDMRUFDWHJRU\6HFWLRQGHÀQHVHDFKRIWKH93,URXWLQHVOLVWHGLQ
DOSKDEHWLFDORUGHU
7DEOH³93,URXWLQHVIRUVLPXODWLRQUHODWHGFDOOEDFNV
7R
8VH
5HJLVWHUDVLPXODWLRQUHODWHGFDOOEDFN
YSLBUHJLVWHUBFE
5HPRYHDVLPXODWLRQUHODWHGFDOOEDFN
YSLBUHPRYHBFE
*HWLQIRUPDWLRQDERXWDVLPXODWLRQUHODWHGFDOOEDFN
YSLBJHWBFEBLQIR
7DEOH³93,URXWLQHVIRUV\VWHPWDVNIXQFWLRQFDOOEDFNV
7R
8VH
5HJLVWHUDV\VWHPWDVNIXQFWLRQFDOOEDFN
YSLBUHJLVWHUBV\VWI
*HWLQIRUPDWLRQDERXWDV\VWHPWDVNIXQFWLRQFDOOEDFN
YSLBJHWBV\VWIBLQIR
7DEOH³93,URXWLQHVIRUWUDYHUVLQJ9HULORJ+'/KLHUDUFK\
7R
8VH
2EWDLQDKDQGOHIRUDQREMHFWZLWKDRQHWRRQHUHODWLRQVKLS
YSLBKDQGOH
2EWDLQKDQGOHVIRUREMHFWVLQDRQHWRPDQ\UHODWLRQVKLS
YSLBLWHUDWH
YSLBVFDQ
2EWDLQDKDQGOHVIRUDQREMHFWLQDPDQ\WRRQHUHODWLRQVKLS
YSLBKDQGOHBPXOWL
7DEOH³93,URXWLQHVIRUDFFHVVLQJSURSHUWLHVRIREMHFWV
7R
*HWWKHYDOXHRIREMHFWVZLWKW\SHVRILQWRUERRO
*HWWKHYDOXHRIREMHFWVZLWKW\SHVRIVWULQJ
8VH
YSLBJHW
YSLBJHWBVWU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
7DEOH³93,URXWLQHVIRUDFFHVVLQJREMHFWVIURPSURSHUWLHV
7R
8VH
2EWDLQDKDQGOHIRUDQDPHGREMHFW
YSLBKDQGOHBE\BQDPH
2EWDLQDKDQGOHIRUDQLQGH[HGREMHFW
YSLBKDQGOHBE\BLQGH[
7DEOH³93,URXWLQHVIRUGHOD\SURFHVVLQJ
7R
8VH
5HWULHYHGHOD\VRUWLPLQJOLPLWVRIDQREMHFW
YSLBJHWBGHOD\V
:ULWHGHOD\VRUWLPLQJOLPLWVWRDQREMHFW
YSLBSXWBGHOD\V
7DEOH³93,URXWLQHVIRUORJLFDQGVWUHQJWKYDOXHSURFHVVLQJ
7R
8VH
5HWULHYHORJLFYDOXHRUVWUHQJWKYDOXHRIDQREMHFW
YSLBJHWBYDOXH
:ULWHORJLFYDOXHRUVWUHQJWKYDOXHWRDQREMHFW
YSLBSXWBYDOXH
7DEOH³93,URXWLQHVIRUVLPXODWLRQWLPHSURFHVVLQJ
7R
8VH
)LQGWKHFXUUHQWVLPXODWLRQWLPHRUWKHVFKHGXOHGWLPHRIIXWXUHHYHQWV
YSLBJHWBWLPH
7DEOH³93,URXWLQHVIRUPLVFHOODQHRXVXWLOLWLHV
7R
:ULWHWRVWGRXWDQGWKHFXUUHQWORJÀOH
8VH
YSLBSULQWI
2SHQDÀOHIRUZULWLQJ
YSLBPFGBRSHQ
&ORVHRQHRUPRUHÀOHV
YSLBPFGBFORVH
:ULWHWRRQHRUPRUHÀOHV
YSLBPFGBSULQWI
5HWULHYHWKHQDPHRIDQRSHQÀOH
YSLBPFGBQDPH
5HWULHYHGDWDDERXWSURGXFWLQYRFDWLRQRSWLRQV
6HFWLRQ
YSLBJHWBYORJBLQIR
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³93,URXWLQHVIRUPLVFHOODQHRXVXWLOLWLHVFRQWLQXHG
7R
8VH
6HHLIWZRKDQGOHVUHIHUWRWKHVDPHREMHFW
YSLBFRPSDUHBREMHFWV
2EWDLQHUURUVWDWXVDQGHUURULQIRUPDWLRQDERXWWKHSUHYLRXVFDOOWRD
93,URXWLQH
YSLBFKNBHUURU
)UHHPHPRU\DOORFDWHGE\93,URXWLQHV
YSLBIUHHBREMHFW
.H\WRREMHFWPRGHOGLDJUDPV
7KLVFODXVHFRQWDLQVWKHNH\VWRWKHV\PEROVXVHGLQWKHREMHFWPRGHOGLDJUDPV.H\VDUHSURYLGHGIRUREMHFWVDQG
FODVVHVWUDYHUVLQJUHODWLRQVKLSVDQGDFFHVVLQJSURSHUWLHV
'LDJUDPNH\IRUREMHFWVDQGFODVVHV
REMGHIQ
2EMHFW'HÀQLWLRQ
REMHFW
2EMHFW5HIHUHQFH
FODVVGHIQ
&ODVV'HÀQLWLRQ
FODVV
REMGHIQ
%ROG OHWWHUV LQ D VROLG HQFORVXUH LQGLFDWH DQ REMHFW GHÀQLWLRQ 7KH
SURSHUWLHVRIWKHREMHFWDUHGHÀQHGLQWKLVORFDWLRQ
1RUPDOOHWWHUVLQDVROLGHQFORVXUHLQGLFDWHDQREMHFWUHIHUHQFH
%ROG LWDOLF OHWWHUV LQ D GRWWHG HQFORVXUH LQGLFDWH D FODVV GHÀQLWLRQ
ZKHUH WKH FODVV JURXSV RWKHU REMHFWV DQG FODVVHV 3URSHUWLHV RI WKH
FODVVDUHGHÀQHGLQWKLVORFDWLRQ7KHFODVVGHÀQLWLRQFDQFRQWDLQDQ
REMHFWGHÀQLWLRQ
REMHFW
FODVV
REM
REM
&ODVV5HIHUHQFH
,WDOLFOHWWHUVLQDGRWWHGHQFORVXUHLQGLFDWHDFODVVUHIHUHQFH
8QQDPHG&ODVV
$GRWWHGHQFORVXUHZLWKQRQDPHLVDQXQQDPHGFODVV,WLVVRPHWLPHV
FRQYHQLHQWWRJURXSREMHFWVDOWKRXJKWKH\VKDOOQRWEHUHIHUHQFHGDVD
JURXSHOVHZKHUHVRDQDPHLVQRWLQGLFDWHG
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
'LDJUDPNH\IRUDFFHVVLQJSURSHUWLHV
REM
! YHFWRU
ERROYSL9HFWRU
! VL]H
LQWYSL6L]H
REM
! QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
REMHFW
! FRPSOH[
,QWHJHU DQG %RROHDQ SURSHUWLHV DUH DFFHVVHG ZLWK WKH URXWLQH
YSLBJHW
([DPSOH*LYHQDYSL+DQGOHREMBKWRDQREMHFWRIW\SHYSL2EMJHW
WKHVL]HRIWKHREMHFW
ERROYHFWBIODJ YSLBJHWYSLYHFWRUREMBK
LQWVL]H YSLBJHWBVL]HYSL6L]HREMBK
6WULQJSURSHUWLHVDUHDFFHVVHGZLWKURXWLQHYSLBJHWBVWU
([DPSOH
FKDUQDPH>QDPH6L]H@
YSLBJHWBVWUYSL1DPHREMBK
&RPSOH[ SURSHUWLHV IRU WLPH DQG ORJLF YDOXH DUH DFFHVVHG ZLWK WKH
LQGLFDWHGURXWLQHV6HHWKHGHVFULSWLRQVRIWKHURXWLQHVIRUXVDJH
IXQF
IXQF
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
'LDJUDPNH\IRUWUDYHUVLQJUHODWLRQVKLSV
UHI
REM
UHI
YSL7DJ
REM
$ VLQJOH DUURZ LQGLFDWHV D RQHWRRQH UHODWLRQVKLS DFFHVVHG
ZLWKWKHURXWLQHYSLBKDQGOH
([DPSOH *LYHQ YSL+DQGOH YDULDEOH UHIBK RI W\SH UHI
DFFHVVREMBKRIW\SHYSL2EM
REMBK YSLBKDQGOHYSL2EMUHIBK
$ WDJJHG RQHWRRQH UHODWLRQVKLS LV WUDYHUVHG VLPLODUO\ XVLQJ
YSL7DJLQVWHDGRIYSL2EM
([DPSOH
REMBK YSLBKDQGOHYSL7DJUHIBK
$WRSOHYHORQHWRRQHUHODWLRQVKLSLVWUDYHUVHGVLPLODUO\XVLQJ
18//LQVWHDGRIUHIBK
REM
UHI
REM
UHI
YSL7DJ
REM
([DPSOH
REMBK YSLBKDQGOHYSL2EM18//
$ GRXEOH DUURZ LQGLFDWHV D RQHWRPDQ\ UHODWLRQVKLS DFFHVVHG
ZLWKWKHURXWLQHYSLBVFDQ
([DPSOH*LYHQYSL+DQGOHYDULDEOHUHIBKRIW\SHUHIVFDQ
REMHFWVRIW\SHYSL2EM
LWU YSLBLWHUDWHYSL2EMUHIBK
ZKLOHREMBK YSLBVFDQLWU
SURFHVV¶REMBK·
$WDJJHGRQHWRPDQ\UHODWLRQVKLSLVWUDYHUVHGVLPLODUO\XVLQJ
YSL7DJLQVWHDGRIYSL2EM
([DPSOH
LWU YSLBLWHUDWHYSL7DJUHIBK
ZKLOHREMBK YSLBVFDQLWU
SURFHVV¶REMBK·
$ WRSOHYHO RQHWRPDQ\ UHODWLRQVKLS LV WUDYHUVHG VLPLODUO\
XVLQJ18//LQVWHDGRIUHIBK
([DPSOH
REM
LWU YSLBLWHUDWHYSL2EM18//
ZKLOHREMBK YSLBVFDQLWU
SURFHVV¶REMBK·
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
2EMHFWGDWDPRGHOGLDJUDPV
6XEFODXVHVWKURXJKFRQWDLQWKHGDWDPRGHOGLDJUDPVWKDWGHÀQHWKHDFFHVVLEOHREMHFWVDQGJURXSVRI
REMHFWVDORQJZLWKWKHLUUHODWLRQVKLSVDQGSURSHUWLHV
0RGXOH
PRGXOH
YSL,QWHUQDO6FRSH
VFRSH
! FHOO
SRUW
! GHFD\WLPH
QHW
! GHIDXOWQHWW\SH
UHJ
ERROYSL&HOO,QVWDQFH
LQWYSL'HI'HFD\7LPH
LQWYSL'HI1HW7\SH
! GHÀQLWLRQORFDWLRQ
LQWYSL'HI/LQH1R
VWUYSL'HI)LOH
! GHÀQLWLRQQDPH
VWUYSL'HI1DPH
! GHOD\PRGH
LQWYSL'HI'HOD\0RGH
! ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
! QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
! SURWHFWHG
ERROYSL3URWHFWHG
! WLPHSUHFLVLRQ
LQWYSL7LPH3UHFLVLRQ
! WLPHXQLW
LQWYSL7LPH8QLW
! WRSPRGXOH
ERROYSL7RS0RGXOH
! XQFRQQHFWHGGULYH
LQWYSL8QFRQQ'ULYH
YDULDEOHV
PHPRU\
QDPHGHYHQW
SURFHVV
FRQWDVVLJQ
PRGXOH
SULPLWLYH
PRGSDWK
WFKN
SDUDPHWHU
VSHFSDUDP
GHISDUDP
SDUDPDVVLJQ
LRGHFO
127(6
³ 7RSOHYHOPRGXOHVVKDOOEHDFFHVVHGXVLQJYSLBLWHUDWHZLWKD18//UHIHUHQFHREMHFW
³ 3DVVLQJ D 18// KDQGOH WR YSLBJHW ZLWK W\SHV YSL7LPH3UHFLVLRQ RU YSL7LPH8QLW VKDOO UHWXUQ WKH VPDOOHVW WLPH
SUHFLVLRQRIDOOPRGXOHVLQWKHLQVWDQWLDWHGGHVLJQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6FRSHWDVNIXQFWLRQ,2GHFODUDWLRQ
VWPW
VFRSH
QDPHGHYHQW
PRGXOH
YDULDEOHV
WDVNIXQF
UHJ
QDPHGEHJLQ
GHISDUDP
QDPHGIRUN
PHPRU\
! QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
YSL,QWHUQDO6FRSH
VFRSH
PRGXOH
XGSGHIQ
QHW
SDUDPHWHU
YSL([SU
WDVNIXQF
LRGHFO
WDVN
! GLUHFWLRQ
IXQFWLRQ
! ORFDWLRQ
! ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
LQWYSL'LUHFWLRQ
UHJ
YDULDEOHV
YSL/HIW5DQJH
H[SU
YSL5LJKW5DQJH
H[SU
LQWYSL/LQH1R
VWUYSL)LOH
! QDPH
VWUYSL1DPH
! VFDODU
ERROYSL6FDODU
! VL]H
LQWYSL6L]H
! YHFWRU
ERROYSL9HFWRU
127(³$9HULORJ+'/IXQFWLRQVKDOOFRQWDLQDQREMHFWZLWKWKHVDPHQDPHVL]HDQGW\SHDVWKHIXQFWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
3RUWV
PRGXOH
SRUWV
SRUW
YSL+LJK&RQQ
YSL/RZ&RQQ
H[SU
H[SU
YSL3DUHQW
YSL%LW
SRUWELW
!FRQQHFWHGE\QDPH
ERROYSL&RQQ%\1DPH
!GHOD\PLSG
YSLBJHWBGHOD\V
YSLBSXWBGHOD\V
!GLUHFWLRQ
LQWYSL'LUHFWLRQ
!H[SOLFLWO\QDPHG
ERROYSL([SOLFLW1DPH
!LQGH[
LQWYSL3RUW,QGH[
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!VFDODU
ERROYSL6FDODU
!VL]H
LQWYSL6L]H
!YHFWRU
ERROYSL9HFWRU
127(6
³ YSL+LJK&RQQVKDOOLQGLFDWHWKHKLHUDUFKLFDOO\KLJKHUFORVHUWRWKHWRSPRGXOHSRUWFRQQHFWLRQ
³YSL/RZ&RQQVKDOOLQGLFDWHWKHORZHUIXUWKHUIURPWKHWRSPRGXOHSRUWFRQQHFWLRQ
³ 3URSHUWLHVVFDODUDQGYHFWRUVKDOOLQGLFDWHLIWKHSRUWLVELWRUPRUHWKDQELW7KH\VKDOOQRWLQGLFDWHDQ\WKLQJDERXWZKDW
LVFRQQHFWHGWRWKHSRUW
³ 3URSHUWLHVLQGH[DQGQDPHVKDOOQRWDSSO\IRUSRUWELWV
³ ,IDSRUWLVH[SOLFLWO\QDPHGWKHQWKHH[SOLFLWQDPHVKDOOEHUHWXUQHG,IQRWDQGDQDPHH[LVWVWKHQWKDWQDPHVKDOOEH
UHWXUQHG2WKHUZLVH18//VKDOOEHUHWXUQHG
³ YSL3RUW,QGH[FDQEHXVHGWRGHWHUPLQHWKHSRUWRUGHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
1HWV
YSL3RUW,QVW
SRUWV
H[SU
YSL/HIW5DQJH
SRUWV
YSL+LJK&RQQ
YSL/RZ&RQQ
PRGXOH
QHWV
YSL5LJKW5DQJH
YSL/RDG
YSL'HOD\
DVVLJQVWPW
IRUFH
SULPWHUP
QHW
YSL3DUHQW
H[SU
H[SU
FRQWDVVLJQ
YSL'ULYHU
SRUWV
SDWKWHUP
WFKNWHUP
YSL%LW
QHWELW
!GHOD\
!QHWGHFODVVLJQ
!H[SDQGHG
!QHWW\SH
!LPSOLFLWO\GHFODUHG
!VFDODU
!ORFDWLRQ
!VFDODUHGGHFODUDWLRQ
YSLBJHWBGHOD\V
ERROYSL([SDQGHG
ERROYSL,PSOLFLW'HFO
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
H[SU
YSL,QGH[
ERROYSL1HW'HFO$VVLJQ
LQWYSL1HW7\SH
ERROYSL6FDODU
ERROYSL([SOLFLW6FDODUHG
!VL]H
LQWYSL6L]H
!VWUHQJWK
LQWYSL6WUHQJWK
LQWYSL6WUHQJWK
LQWYSL&KDUJH6WUHQJWK
!YDOXH
YSLBJHWBYDOXH
YSLBSXWBYDOXH
!YHFWRU
ERROYSL9HFWRU
!YHFWRUHGGHFODUDWLRQ
ERROYSL([SOLFLW9HFWRUHG
127(6
³ )RUYHFWRUVQHWELWVVKDOOEHDYDLODEOHUHJDUGOHVVRIYHFWRUH[SDQVLRQ
³ &RQWLQXRXVDVVLJQPHQWVDQGSULPLWLYHWHUPLQDOVVKDOOEHDFFHVVHGUHJDUGOHVVRIKLHUDUFKLFDOERXQGDULHV
³ &RQWLQXRXVDVVLJQPHQWVDQGSULPLWLYHWHUPLQDOVVKDOORQO\EHDFFHVVHGIURPVFDODUQHWVRUELWVHOHFWV
³ )RUYSL3RUW,QVWDQGYSL3RUWLIWKHUHIHUHQFHKDQGOHLVDELWRUWKHHQWLUHYHFWRUWKHUHODWLRQVKLSVVKDOOUHWXUQDKDQGOHWR
HLWKHUDSRUWELWRUWKHHQWLUHSRUWUHVSHFWLYHO\
³ )RULPSOLFLWQHWVYSL/LQH1RVKDOOUHWXUQDQGYSL)LOHVKDOOUHWXUQWKHÀOHQDPHZKHUHWKHLPSOLFLWQHWLVÀUVWUHIHUHQFHG
³ 2QO\DFWLYHIRUFHVDQGDVVLJQVWDWHPHQWVVKDOOEHUHWXUQHGIRUYSL/RDG
³ 2QO\DFWLYHIRUFHVVKDOOEHUHWXUQHGIRUYSL'ULYHU
³YSL'ULYHUVKDOODOVRUHWXUQSRUWVWKDWDUHGULYHQE\REMHFWVRWKHUWKDQQHWVDQGQHWELWV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
5HJV
YSL3RUW,QVW
SRUWV
YSL/RZ&RQQ
YSL+LJK&RQQ
UHJV
YSL'ULYHU
SRUWV
IRUFH
DVVLJQVWPW
SULPWHUP
YSL/RDG
VFRSH
UHJ
YSL3DUHQW
YSL/HIW5DQJH
H[SU
YSL5LJKW5DQJH
H[SU
YSL%LW
UHJELW
FRQWDVVLJQ
WFKNWHUP
YSL,QGH[
H[SU
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!VFDODU
ERROYSL6FDODU
!VL]H
LQWYSL6L]H
!YDOXH
YSLBJHWBYDOXH
YSLBSXWBYDOXH
!YHFWRU
ERROYSL9HFWRU
127(6
³ &RQWLQXRXVDVVLJQPHQWVDQGSULPLWLYHWHUPLQDOVVKDOOEHDFFHVVHGUHJDUGOHVVRIKLHUDUFKLFDOERXQGDULHV
³ &RQWLQXRXVDVVLJQPHQWVDQGSULPLWLYHWHUPLQDOVVKDOORQO\EHDFFHVVHGIURPVFDODUUHJVDQGELWVHOHFWV
³ 2QO\DFWLYHIRUFHVDQGDVVLJQVWDWHPHQWVVKDOOEHUHWXUQHGIRUYSL/RDGDQGYSL'ULYHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
9DULDEOHVQDPHGHYHQW
YSL3RUW,QVW
SRUWV
YSL+LJK&RQQ
YSL/RZ&RQQ
VFRSH
H[SU
H[SU
SRUWV
H[SU
YDULDEOHV
YSL/HIW5DQJH
YSL5LJKW5DQJH
LQWHJHUYDU
WLPHYDU
YSL,QGH[
YSL3DUHQW
YSL3DUHQW
UHDOYDU
!DUUD\
ERROYSL$UUD\
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!VL]H
YDUVHOHFW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!YDOXH
YSLBJHWBYDOXH
YSLBSXWBYDOXH
LQWYSL6L]H
!YDOXH
YSLBJHWBYDOXH
YSLBSXWBYDOXH
VFRSH
QDPHGHYHQW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
127(³YSL/HIW5DQJHDQGYSL5LJKW5DQJHVKDOOEHLQYDOLGIRUUHDOVVLQFHWKHUHFDQQRWEHDUUD\VRIUHDOV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
0HPRU\
VFRSH
YSL/HIW5DQJH
H[SU
H[SU
YSL5LJKW5DQJH
PHPRU\
YSL3DUHQW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
H[SU
VWUYSL1DPH
VWUYSL)XOO1DPH
YSL,QGH[
!VL]H
YSL/HIW5DQJH
LQWYSL6L]H
PHPRU\ZRUG
!ORFDWLRQ
YSL5LJKW5DQJH
H[SU
H[SU
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!VL]H
LQWYSL6L]H
!YDOXH
YSLBJHWBYDOXH
YSLBSXWBYDOXH
127(6
³ YSL6L]HIRUDPHPRU\VKDOOUHWXUQWKHQXPEHURIZRUGVLQWKHPHPRU\
³ YSL6L]HIRUDPHPRU\ZRUGVKDOOUHWXUQWKHQXPEHURIELWVLQWKHZRUG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
3DUDPHWHUVSHFSDUDP
VFRSH
SDUDPHWHU
H[SU
!FRQVWDQWW\SH
LQWYSL&RQVW7\SH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!YDOXH
YSLBJHWBYDOXH
PRGXOH
H[SU
VSHFSDUDP
!FRQVWDQWW\SH
LQWYSL&RQVW7\SH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!YDOXH
YSLBJHWBYDOXH
PRGXOH
GHISDUDP
YSL/KV
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
PRGXOH
SDUDPDVVLJQ
YSL5KV
YSL/KV
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
YSL5KV
SDUDPHWHU
H[SU
SDUDPHWHU
H[SU
127(6
³ 2EWDLQLQJWKHYDOXHIURPWKHREMHFWSDUDPHWHUVKDOOUHWXUQWKHÀQDOYDOXHRIWKHSDUDPHWHUDIWHUDOOPRGXOHLQVWDQWLDWLRQ
RYHUULGHVDQGGHISDUDPVKDYHEHHQUHVROYHG
³YSL/KVIURPDSDUDPDVVLJQREMHFWVKDOOUHWXUQDKDQGOHWRWKHRYHUULGGHQSDUDPHWHU
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
3ULPLWLYHSULPWHUP
PRGXOH
H[SU
H[SU
YSL'HOD\
SULPLWLYH
JDWH
VZLWFK
XGSGHIQ
XGS
!GHÀQLWLRQQDPH
VWUYSL'HI1DPH
SULPWHUP
!GLUHFWLRQ
LQWYSL'LUHFWLRQ
!LQGH[
LQWYSL7HUP,QGH[
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!YDOXH
YSLBJHWBYDOXH
!GHOD\
YSLBJHWBGHOD\V
YSLBSXWBGHOD\V
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
!SULPLWLYHW\SH
LQWYSL3ULP7\SH
!QXPEHURILQSXWV
LQWYSL6L]H
!VWUHQJWK
LQWYSL6WUHQJWK
LQWYSL6WUHQJWK
!YDOXH
YSLBJHWBYDOXH
YSLBSXWBYDOXH
127(6
³ YSL6L]HVKDOOUHWXUQWKHQXPEHURILQSXWV
³ )RUSULPLWLYHVYSLBSXWBYDOXHVKDOORQO\EHXVHGZLWKVHTXHQWLDO8'3SULPLWLYHV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
8'3
XGS
XGSGHIQ
LRGHFO
!GHÀQLWLRQQDPH
VWUYSL'HI1DPH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QXPEHURILQSXWV
LQWYSL6L]H
!SURWHFWHG
ERROYSL3URWHFWHG
!W\SH
LQWYSL3ULP7\SH
WDEOHHQWU\
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!QXPEHURIV\PEROHQWULHV
LQWYSL6L]H
!YDOXH
YSLBJHWBYDOXH
LQLWLDO
127(³2QO\VWULQJGHFRPSLODWLRQDQGYHFWRU$6&,,YDOXHVVKDOOEHREWDLQHGIRUWDEOHHQWU\REMHFWVXVLQJYSLBJHWBYDOXH
5HIHUWRWKHGHÀQLWLRQRIYSLBJHWBYDOXHIRUDGGLWLRQDOGHWDLOV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
0RGXOHSDWKWLPLQJFKHFNLQWHUPRGXOHSDWK
PRGXOH
H[SU
YSL'HOD\
PRGSDWK
SDWKWHUP
YSL0RG3DWK,Q
!GLUHFWLRQ
YSL0RG3DWK2XW
YSL0RG'DWD3DWK,Q
LQWYSL'LUHFWLRQ
!GHOD\
YSLBJHWBGHOD\V
YSLBSXWBGHOD\V
!HGJH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
H[SU
H[SU
YSL&RQGLWLRQ
LQWYSL(GJH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!SDWKW\SH
LQWYSL3DWK7\SH
!SRODULW\
LQWYSL3RODULW\
LQWYSL'DWD3RODULW\
SRUWV
LQWHUPRGSDWK
!KDV,I1RQH
!GHOD\
ERROYSL0RG3DWK+DV,I1RQH
YSLBJHWBGHOD\
YSLBSXWBGHOD\
PRGXOH
YSL'HOD\
WFKN
!OLPLW
YSLBJHWBGHOD\V
YSLBSXWBGHOD\V
H[SU
WFKNWHUP
YSL7FKN5HI7HUP
YSL7FKN'DWD7HUP !HGJH
LQWYSL(GJH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
H[SU
!WFKNW\SH
LQWYSL7FKN7\SH
YSL7FKN1RWLILHU
UHJV
H[SU
YSL&RQGLWLRQ
127(6
³ 7KHYSL7FKN5HI7HUPLVWKHÀUVWWHUPLQDOIRUDOOWFKNVH[FHSWVHWXSZKHUHYSL7FKN'DWD7HUPLVWKHÀUVWWHUPLQDODQG
YSL7FKN5HI7HUPLVWKHVHFRQGWHUPLQDO
³ 7RJHWWRDQLQWHUPRGXOHSDWKYSLBKDQGOHBPXOWLYSL,QWHU0RG3DWKSRUWSRUWFDQEHXVHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DVNDQGIXQFWLRQFDOO
WIFDOO
WDVN
WDVNFDOO
IXQFWLRQ
IXQFFDOO
V\VWDVNFDOO
YSL6\V7I&DOO
V\VIXQFFDOO
!XVHUGHÀQHG
ERROYSL8VHU'HIQ
H[SU
YSL$UJXPHQW
XVHUV\VWI
!V\VWILQIR
SBYSLBV\VWIBGDWD
YSLBJHWBV\VWIBLQIR
!YDOXH
YSLBSXWBYDOXH
YSLBJHWBYDOXH
!V\VIXQFW\SH
LQWYSL6\V)XQF7\SH
!WIQDPH
VWUYSL1DPH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
127(6
³ 7KHV\VWHPWDVNRUIXQFWLRQWKDWLQYRNHGDQDSSOLFDWLRQVKDOOEHDFFHVVHGZLWKYSLBKDQGOHYSL6\V7I&DOO18//
³ YSLBJHWBYDOXHVKDOOUHWXUQWKHFXUUHQWYDOXHRIWKHV\VWHPIXQFWLRQ
³ ,IWKHYSL8VHU'HIQSURSHUW\RIDV\VWHPWDVNRUIXQFWLRQFDOOLVWUXHWKHQWKHSURSHUWLHVRIWKHFRUUHVSRQGLQJV\VWIREMHFW
VKDOOEHREWDLQHGYLDYSLBJHWBV\VWIBLQIR
³ $OOXVHUGHÀQHGV\VWHPWDVNVRUIXQFWLRQVVKDOOEHUHWULHYHGXVLQJYSLBLWHUDWHZLWKYSL8VHU6\VWIDVWKHW\SHDUJXPHQW
DQGD18//UHIHUHQFHDUJXPHQW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
&RQWLQXRXVDVVLJQPHQW
YSL5KV
PRGXOH
FRQWDVVLJQ
!GHOD\
YSL/KV
YSLBJHWBGHOD\V
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
YSL'HOD\
H[SU
H[SU
H[SU
!QHWGHFODVVLJQ
ERROYSL1HW'HFO$VVLJQ
!VWUHQJWK
LQWYSL6WUHQJWK
LQWYSL6WUHQJWK
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6LPSOHH[SUHVVLRQV
VLPSOHH[SU
YSL8VH
QHWV
SULPWHUP
SDWKWHUP
UHJV
WFKNWHUP
YDULDEOHV
SRUW
SDUDPHWHU
VWPW
PHPRU\
FRQWDVVLJQ
YDUVHOHFW
PHPRU\ZRUG
!QDPH
VWUYSL1DPH
VWUYSL)XOO1DPH
YSL,QGH[
H[SU
127(6
³ )RUYHFWRUVWKHYSL8VHUHODWLRQVKLSVKDOODFFHVVDQ\XVHRIWKHYHFWRURUSDUWVHOHFWVRUELWVHOHFWVWKHUHRI
³ )RUELWVHOHFWVWKHYSL8VHUHODWLRQVKLSVKDOODFFHVVDQ\VSHFLÀFXVHRIWKDWELWDQ\XVHRIWKHSDUHQWYHFWRUDQGDQ\SDUW
VHOHFWWKDWFRQWDLQVWKDWELW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
([SUHVVLRQV
H[SU
VLPSOHH[SU
YSL3DUHQW
YSL/HIW5DQJH
SDUWVHOHFW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
RSHUDWLRQ
!RSHUDWLRQW\SH
H[SU
YSL5LJKW5DQJH
H[SU
YSL2SHUDQG
H[SU
LQWYSL2S7\SH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
FRQVWDQW
!FRQVWDQWW\SH
LQW
YSL&RQVW7\SH
!ORFDWLRQ
LQWYSL/LQH1R
IXQFFDOO
V\VIXQFFDOO
!VL]H
LQWYSL6L]H
!YDOXH
YSLBJHWBYDOXH
127(³)RUDQRSHUDWRUZKRVHW\SHLVYSL0XOWL&RQFDWWKHÀUVWRSHUDQGVKDOOEHWKHPXOWLSOLHUH[SUHVVLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
3URFHVVEORFNVWDWHPHQWHYHQWVWDWHPHQW
PRGXOH
VFRSH
SURFHVV
VWPW
LQLWLDO
EORFN
DOZD\V
DWRPLFVWPW
DWRPLFVWPW
LI
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
LIHOVH
ZKLOH
UHSHDW
EORFN
VWPW
EHJLQ
ZDLW
FDVH
IRU
GHOD\FRQWURO
QDPHGEHJLQ
HYHQWFRQWURO
IRUN
HYHQWVWPW
QDPHGIRUN
DVVLJQPHQW
DVVLJQVWPW
GHDVVLJQ
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
GLVDEOH
WIFDOO
HYHQWVWPW¶!·
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
QDPHGHYHQW
IRUHYHU
IRUFH
UHOHDVH
QXOOVWPW
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
$VVLJQPHQWGHOD\FRQWUROHYHQWFRQWUROUHSHDWFRQWURO
GHOD\FRQWURO
YSL/KV
H[SU
YSL5KV
H[SU
DVVLJQPHQW
!EORFNLQJ
ERROYSL%ORFNLQJ
!ORFDWLRQ
HYHQWFRQWURO
UHSHDWFRQWURO
LQWYSL/LQH1R
VWUYSL)LOH
GHOD\FRQWURO¶·
!GHOD\
YSLBJHWBGHOD\V
VWPW
YSL'HOD\
!ORFDWLRQ
H[SU
LQWYSL/LQH1R
VWUYSL)LOH
HYHQWFRQWURO¶#·
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
YSL&RQGLWLRQ
H[SU
QDPHGHYHQW
VWPW
UHSHDWFRQWURO
H[SU
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
HYHQWFRQWURO
127(³)RUGHOD\FRQWURODQGHYHQWFRQWURODVVRFLDWHGZLWKDVVLJQPHQWWKHVWDWHPHQWVKDOODOZD\VEH18//
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
:KLOHUHSHDWZDLWIRUIRUHYHU
ZKLOH
YSL&RQGLWLRQ
UHSHDW
H[SU
VWPW
ZDLW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
IRU
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
YSL)RU,QLW6WPW
YSL&RQGLWLRQ
YSL)RU,QF6WPW
VWPW
H[SU
VWPW
VWPW
IRUHYHU
VWPW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,ILIHOVHFDVH
LI
YSL&RQGLWLRQ
H[SU
VWPW
LIHOVH
YSL(OVH6WPW
VWPW
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
FDVH
!FDVHW\SH
YSL&RQGLWLRQ
H[SU
LQWYSL&DVH7\SH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
FDVHLWHP
H[SU
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
YSL6WPW
VWPW
127(6
³ 7KHFDVHLWHPVKDOOJURXSDOOFDVHFRQGLWLRQVWKDWEUDQFKWRWKHVDPHVWDWHPHQW
³YSLBLWHUDWHVKDOOUHWXUQ18//IRUWKHGHIDXOWFDVHLWHPVLQFHWKHUHLVQRH[SUHVVLRQZLWKWKHGHIDXOWFDVH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$VVLJQVWDWHPHQWGHDVVLJQIRUFHUHOHDVHGLVDEOH
IRUFH
DVVLJQVWPW
!ORFDWLRQ
YSL5KV
YSL/KV
H[SU
H[SU
LQWYSL/LQH1R
VWUYSL)LOH
GHDVVLJQ
UHOHDVH
YSL/KV
H[SU
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
GLVDEOH
!ORFDWLRQ
LQWYSL/LQH1R
VWUYSL)LOH
YSL6FRSH
IXQFWLRQ
WDVN
QDPHGIRUN
QDPHGEHJLQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
&DOOEDFNWLPHTXHXH
FDOOEDFN
H[SU
!FELQIR
SBFEBGDWD
YSLBJHWBFEBLQIR
SULPWHUP
VWPW
YSL3DUHQW
WLPHTXHXH
WLPHTXHXH
!WLPH
YSLBJHWBWLPH
127(6
³ 7RJHWLQIRUPDWLRQDERXWWKHFDOOEDFNREMHFWWKHURXWLQHYSLBJHWBFEBLQIRFDQEHXVHG
³ 7RJHWFDOOEDFNREMHFWVQRWUHODWHGWRWKHDERYHREMHFWVWKHVHFRQGDUJXPHQWWRYSLBLWHUDWHVKDOOEH18//
³ 7KHWLPHTXHXHREMHFWVVKDOOEHUHWXUQHGLQLQFUHDVLQJRUGHURIVLPXODWLRQWLPH
³ YSLBLWHUDWHVKDOOUHWXUQ18//LIWKHUHLVQRWKLQJOHIWLQWKHVLPXODWLRQTXHXH
³ ,IDQ\HYHQWVDIWHUUHDGRQO\V\QFUHPDLQLQWKHFXUUHQWTXHXHWKHQLWVKDOOQRWEHUHWXUQHGDVSDUWRIWKHLWHUDWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
6HFWLRQ
93,URXWLQHGHÀQLWLRQV
7KLVVHFWLRQGHVFULEHVWKH9HULORJ3URFHGXUDO,QWHUIDFH93,URXWLQHVH[SODLQLQJWKHLUIXQFWLRQV\QWD[DQGXVDJH
7KHURXWLQHVDUHOLVWHGLQDOSKDEHWLFDORUGHU6HH6HFWLRQIRUWKHFRQYHQWLRQVXVHGLQWKHGHÀQLWLRQVRIWKH3/,
URXWLQHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBFKNBHUURU
YSLBFKNBHUURU
6\QRSVLV
5HWULHYHLQIRUPDWLRQDERXW93,URXWLQHHUURUV
6\QWD[
YSLBFKNBHUURUHUURUBLQIRBS
7\SH
5HWXUQV
$UJXPHQWV
ERRO
'HVFULSWLRQ
WUXHRQVXFFHVVDQGIDOVHRQIDLOXUH
7\SH
1DPH
SBYSLBHUURUBLQIR
HUURUBLQIRBS
'HVFULSWLRQ
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJHUURULQIRUPDWLRQ
7KH93,URXWLQH YSLBFKNBHUURUVKDOOUHWXUQ WUXHLIWKHSUHYLRXVFDOOWRD93,URXWLQHUHVXOWHGLQDQHUURU,IDQ
HUURU RFFXUUHG WKH VBYSLBHUURUBLQIR VWUXFWXUH VKDOO FRQWDLQ LQIRUPDWLRQ DERXW WKH HUURU ,I WKH HUURU
LQIRUPDWLRQLVQRWQHHGHGD18//FDQEHSDVVHGWRWKHURXWLQH
7KH VBYSLBHUURUBLQIRVWUXFWXUHXVHGE\ YSLBFKNBHUURULVGHÀQHGLQ YSLBXVHUKDQGLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBYSLBHUURUBLQIR^
LQWVWDWH YSL>&RPSLOH3/,5XQ@
LQWOHYHO YSL>1RWLFH:DUQLQJ(UURU6\VWHP,QWHUQDO@
FKDUPHVVDJH
FKDUSURGXFW
FKDUFRGH
FKDUILOH
LQWOLQH
`VBYSLBHUURUBLQIRSBYSLBHUURUBLQIR
)LJXUH³7KHVBYSLBHUURUBLQIRVWUXFWXUHGHÀQLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBFRPSDUHBREMHFWV
YSLBFRPSDUHBREMHFWV
6\QRSVLV
&RPSDUHWZRKDQGOHVWRGHWHUPLQHLIWKH\UHIHUHQFHWKHVDPHREMHFW
6\QWD[
YSLBFRPSDUHBREMHFWVREMREM
7\SH
5HWXUQV
$UJXPHQWV
ERRO
'HVFULSWLRQ
WUXHLIWKHWZRKDQGOHVUHIHUWRWKHVDPHREMHFW2WKHUZLVHIDOVH
7\SH
1DPH
'HVFULSWLRQ
YSL+DQGOH
REM
+DQGOHWRDQREMHFW
YSL+DQGOH
REM
+DQGOHWRDQREMHFW
7KH93,URXWLQH YSLBFRPSDUHBREMHFWVVKDOOUHWXUQ WUXHLIWKHWZRKDQGOHVUHIHUWRWKHVDPHREMHFW2WKHUZLVH
IDOVHVKDOOEHUHWXUQHG+DQGOHHTXLYDOHQFHFDQQRWEHGHWHUPLQHGZLWKD&¶ ·FRPSDULVRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBIUHHBREMHFW
YSLBIUHHBREMHFW
6\QRSVLV
)UHHPHPRU\DOORFDWHGE\93,URXWLQHV
6\QWD[
YSLBIUHHBREMHFWREM
7\SH
5HWXUQV
$UJXPHQWV
ERRO
'HVFULSWLRQ
WUXHRQVXFFHVVDQGIDOVHRQIDLOXUH
7\SH
1DPH
YSL+DQGOH
REM
'HVFULSWLRQ
+DQGOHRIDQREMHFW
7KH93,URXWLQHYSLBIUHHBREMHFWVKDOOIUHHPHPRU\DOORFDWHGIRUREMHFWV,WVKDOOJHQHUDOO\EHXVHGWRIUHHPHPRU\
FUHDWHG IRU LWHUDWRU REMHFWV 7KH LWHUDWRU REMHFW VKDOO DXWRPDWLFDOO\ EH IUHHG ZKHQ YSLBVFDQ UHWXUQV 18// HLWKHU
EHFDXVHLWKDVFRPSOHWHGDQREMHFWWUDYHUVDORUHQFRXQWHUHGDQHUURUFRQGLWLRQ,IQHLWKHURIWKHVHFRQGLWLRQVRFFXU
ZKLFKFDQKDSSHQLIWKHFRGHEUHDNVRXWRIDQLWHUDWLRQORRSEHIRUHLWKDVVFDQQHGHYHU\REMHFWYSLBIUHHBREMHFW
VKRXOG EH FDOOHG WR IUHH DQ\ PHPRU\ DOORFDWHG IRU WKH LWHUDWRU 7KLV URXWLQH FDQ DOVR RSWLRQDOO\ EH XVHG IRU
LPSOHPHQWDWLRQVWKDWKDYHWRDOORFDWHPHPRU\IRUREMHFWV7KHURXWLQHVKDOOUHWXUQWUXHRQVXFFHVVDQG IDOVHRQ
IDLOXUH
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBJHW
YSLBJHW
6\QRSVLV
*HWWKHYDOXHRIDQLQWHJHURU%RROHDQSURSHUW\RIDQREMHFW
6\QWD[
YSLBJHWSURSREM
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
9DOXHRIDQLQWHJHURU%RROHDQSURSHUW\
7\SH
1DPH
'HVFULSWLRQ
LQW
SURS
$QLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHSURSHUW\RIDQREMHFW
IRUZKLFKWRREWDLQDYDOXH
YSL+DQGOH
REM
+DQGOHWRDQREMHFW
8VHYSLBJHWBVWUWRJHWVWULQJSURSHUWLHV
7KH93,URXWLQHYSLBJHWVKDOOUHWXUQWKHYDOXHRIREMHFWSURSHUWLHVIRUSURSHUWLHVRIW\SHLQWDQGERROERROVKDOOEH
GHÀQHGWR LQW2EMHFWSURSHUWLHVRIW\SH ERROVKDOOUHWXUQ IRUWUXHDQG IRUIDOVH)RUREMHFWSURSHUWLHVRIW\SH LQW
VXFKDV YSL6L]HDQ\LQWHJHUVKDOOEHUHWXUQHG)RUREMHFWSURSHUWLHVRIW\SH LQWWKDWUHWXUQDGHÀQHGYDOXHUHIHUWR
$QQH[(IRUWKHYDOXHWKDWVKDOOEHUHWXUQHG1RWHIRUREMHFWSURSHUW\ YSL7LPH8QLWLIWKHREMHFWLV 18//WKHQWKH
VLPXODWLRQWLPHXQLWVKDOOEHUHWXUQHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBJHWBFEBLQIR
YSLBJHWBFEBLQIR
6\QRSVLV
5HWULHYHLQIRUPDWLRQDERXWDVLPXODWLRQUHODWHGFDOOEDFN
6\QWD[
YSLBJHWBFEBLQIRREMFEBGDWDBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
YSL+DQGOH
REM
SBFEBGDWD
FEBGDWDBS
'HVFULSWLRQ
+DQGOHWRDVLPXODWLRQUHODWHGFDOOEDFN
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJFDOOEDFNLQIRUPDWLRQ
8VHYSLBJHWBV\VWIBLQIRWRUHWULHYHLQIRUPDWLRQDERXWDV\VWHPWDVNIXQFWLRQFDOOEDFN
7KH93,URXWLQH YSLBJHWBFEBLQIRVKDOOUHWXUQLQIRUPDWLRQDERXWDVLPXODWLRQUHODWHGFDOOEDFNLQDQ VBFEBGDWD
VWUXFWXUH7KHPHPRU\IRUWKLVVWUXFWXUHVKDOOEHDOORFDWHGE\WKHXVHU
7KHVBFEBGDWDVWUXFWXUHXVHGE\YSLBJHWBFEBLQIRLVGHÀQHGLQYSLBXVHUKDQGLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBFEBGDWD^
LQWUHDVRQ
LQWFEBUWQ
YSL+DQGOHREM
SBYSLBWLPHWLPH VWUXFWXUHZLWKVLPXODWLRQWLPHLQIR
SBYSLBYDOXHYDOXHVWUXFWXUHZLWKVLPXODWLRQYDOXHLQIR
FKDUXVHUBGDWD XVHUGDWDWREHSDVVHGWRFDOOEDFNIXQFWLRQ
`VBFEBGDWDSBFEBGDWD
)LJXUH³7KHVBFEBGDWDVWUXFWXUHGHÀQLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBJHWBGHOD\V
YSLBJHWBGHOD\V
6\QRSVLV
5HWULHYHWKHGHOD\VRUSXOVHOLPLWVRIDQREMHFW
6\QWD[
YSLBJHWBGHOD\VREMGHOD\BS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
YSL+DQGOH
REM
SBYSLBGHOD\
GHOD\BS
'HVFULSWLRQ
+DQGOHWRDQREMHFW
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJGHOD\LQIRUPDWLRQ
8VHYSLBSXWBGHOD\VWRVHWWKHGHOD\VRUWLPLQJOLPLWVRIDQREMHFW
7KH 93, URXWLQH YSLBJHWBGHOD\V VKDOO UHWULHYH WKH GHOD\V RU SXOVH OLPLWV RI DQ REMHFW DQG SODFH WKHP LQ DQ
VBYSLBGHOD\VWUXFWXUHWKDWKDVEHHQDOORFDWHGE\WKHXVHU7KHIRUPDWRIWKHGHOD\LQIRUPDWLRQVKDOOEHFRQWUROOHG
E\ WKH WLPHBW\SH ÁDJ LQ WKH VBYSLBGHOD\ VWUXFWXUH 7KLV URXWLQH VKDOO LJQRUH WKH YDOXH RI WKH W\SH ÁDJ LQ WKH
VBYSLBWLPHVWUXFWXUH
7KHVBYSLBGHOD\DQGVBYSLBWLPHVWUXFWXUHVXVHGE\ERWKYSLBJHWBGHOD\VDQGYSLBSXWBGHOD\VDUHGHÀQHG
LQYSLBXVHUKDQGDUHOLVWHGLQ)LJXUHVDQG
W\SHGHIVWUXFWWBYSLBGHOD\^
VWUXFWWBYSLBWLPHGD SWUWRXVHUDOORFDWHGDUUD\RIGHOD\
YDOXHV
LQWQRBRIBGHOD\V
QXPEHURIGHOD\V
LQWWLPHBW\SH
>YSL6FDOHG5HDO7LPHYSL6LP7LPH@
ERROPWPBIODJ
WUXHIRUPWP
ERRODSSHQGBIODJ
WUXHIRUDSSHQGIDOVHIRUUHSODFH
ERROSXOVHUHBIODJ
WUXHIRUSXOVHUHYDOXHV
`VBYSLBGHOD\SBYSLBGHOD\
)LJXUH³7KHVBYSLBGHOD\VWUXFWXUHGHÀQLWLRQ
W\SHGHIVWUXFWWBYSLBWLPH
^
LQWW\SH
>YSL6FDOHG5HDO7LPHYSL6LP7LPH@
XQVLJQHGLQWKLJKORZIRUYSL6LP7LPH
GRXEOHUHDO
IRUYSL6FDOHG5HDO7LPH
`VBYSLBWLPHSBYSLBWLPH
)LJXUH³7KHVBYSLBWLPHVWUXFWXUHGHÀQLWLRQ
7KHGDÀHOGRIWKHVBYSLBGHOD\VWUXFWXUHVKDOOEHDXVHUDOORFDWHGDUUD\RIVBYSLBWLPHVWUXFWXUHV7KLVDUUD\
VKDOOVWRUHGHOD\YDOXHVUHWXUQHGE\YSLBJHWBGHOD\V7KHQXPEHURIHOHPHQWVLQWKLVDUUD\VKDOOEHGHWHUPLQHGE\
³ 7KHQXPEHURIGHOD\VWREHUHWULHYHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
³ 7KHPWPBÁDJVHWWLQJ
³ 7KHSXOVHUHBÁDJVHWWLQJ
7KHQXPEHURIGHOD\VWREHUHWULHYHGVKDOOEHVHWLQWKHQRBRIBGHOD\VÀHOGRIWKHVBYSLBGHOD\VWUXFWXUH/HJDO
YDOXHVIRUWKHQXPEHURIGHOD\VVKDOOEHGHWHUPLQHGE\WKHW\SHRIREMHFW
³ )RUSULPLWLYHREMHFWVWKHQRBRIBGHOD\VYDOXHVKDOOEHRU
³ )RUSDWKGHOD\REMHFWVWKHQRBRIBGHOD\VYDOXHVKDOOEHRU
³ )RU WLPLQJ FKHFN REMHFWV WKH QRBRIBGHOD\V YDOXH VKDOO PDWFK WKH QXPEHU RI OLPLWV H[LVWLQJ LQ WKH WLPLQJ
FKHFN
7KHXVHUDOORFDWHGVBYSLBGHOD\DUUD\VKDOOFRQWDLQGHOD\VLQWKHVDPHRUGHULQZKLFKWKH\RFFXULQWKH9HULORJ
+'/ GHVFULSWLRQ 7KH QXPEHU RI HOHPHQWV IRU HDFK GHOD\ VKDOO EH GHWHUPLQHG E\ WKH ÁDJV PWPBÁDJ DQG
SXOVHUHBÁDJDVVKRZQLQ7DEOH
7DEOH³6L]HRIWKHVBYSLBGHOD\!GDDUUD\
)ODJYDOXHV
1XPEHURIVBYSLBWLPHDUUD\HOHPHQWV
UHTXLUHGIRUVBYSLBGHOD\!GD
PWPBÁDJ IDOVH
SXOVHUHBÁDJ IDOVH
QRBRIBGHOD\V
PWPBÁDJ WUXH
SXOVHUHBÁDJ IDOVH
QRBRIBGHOD\V
PWPBÁDJ IDOVH
SXOVHUHBÁDJ WUXH
QRBRIBGHOD\V
PWPBÁDJ WUXH
SXOVHUHBÁDJ WUXH
QRBRIBGHOD\V
2UGHULQZKLFKGHOD\HOHPHQWV
VKDOOEHÀOOHG
VWGHOD\GD>@!VWGHOD\
QGGHOD\GD>@!QGGHOD\
VWGHOD\GD>@!PLQGHOD\
GD>@!W\SGHOD\
GD>@!PD[GHOD\
QGGHOD\
VWGHOD\GD>@!GHOD\
GD>@!UHMHFWOLPLW
GD>@!HUURUOLPLW
QGGHOD\HOHPHQW
VWGHOD\GD>@!PLQGHOD\
GD>@!W\SGHOD\
GD>@!PD[GHOD\
GD>@!PLQUHMHFW
GD>@!W\SUHMHFW
GD>@!PD[UHMHFW
GD>@!PLQHUURU
GD>@!W\SHUURU
GD>@!PD[HUURU
QGGHOD\
7KH GHOD\ VWUXFWXUH KDV WR EH DOORFDWHG EHIRUH SDVVLQJ D SRLQWHU WR YSLBJHWBGHOD\V ,Q WKH IROORZLQJ H[DPSOH D
VWDWLFVWUXFWXUHSULPBGDLVDOORFDWHGIRUXVHE\HDFKFDOOWRWKHYSLBJHWBGHOD\VIXQFWLRQ
GLVSOD\BSULPBGHOD\VSULP
YSL+DQGOHSULPW
^
VWDWLFVBYSLBWLPHSULPBGD>@
VWDWLFVBYSLBGHOD\GHOD\BV ^18//YSL6FDOHG5HDO7LPH`
VWDWLFSBYSLBGHOD\GHOD\BS GHOD\BV
GHOD\BVGD SULPBGD
YSLBJHWBGHOD\VSULPGHOD\BS
YSLBSULQWI´'HOD\VIRUSULPLWLYHVIII?Qµ
6HFWLRQ
,(((
6WG
`
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBJHWBVWUYSL)XOO1DPHSULP
GHOD\BS!GD>@UHDOGHOD\BS!GD>@UHDOGHOD\BS!GD>@UHDO
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBJHWBVWU
YSLBJHWBVWU
6\QRSVLV
*HWWKHYDOXHRIDVWULQJSURSHUW\RIDQREMHFW
6\QWD[
YSLBJHWBVWUSURSREM
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDFKDUDFWHUVWULQJFRQWDLQLQJWKHSURSHUW\YDOXH
7\SH
1DPH
'HVFULSWLRQ
LQW
SURS
$QLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHSURSHUW\RIDQREMHFW
IRUZKLFKWRREWDLQDYDOXH
YSL+DQGOH
REM
+DQGOHWRDQREMHFW
8VHYSLBJHWWRJHWLQWHJHUDQG%RROHDQSURSHUWLHV
7KH93,URXWLQHYSLBJHWBVWUVKDOOUHWXUQVWULQJSURSHUW\YDOXHV7KHVWULQJVKDOOEHSODFHGLQDWHPSRUDU\EXIIHUWKDW
VKDOOEHXVHGE\HYHU\FDOOWRWKLVURXWLQH,IWKHVWULQJLVWREHXVHGDIWHUDVXEVHTXHQWFDOOWKHVWULQJVKRXOGEHFRSLHG
WR DQRWKHU ORFDWLRQ 1RWH WKDW D GLIIHUHQW VWULQJ EXIIHU VKDOO EH XVHG IRU VWULQJ YDOXHV UHWXUQHG WKURXJK WKH
VBYSLBYDOXHVWUXFWXUH
7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHXVDJHRIYSLBJHWBVWU
FKDUVWU
YSL+DQGOHPRG YSLBKDQGOHBE\BQDPH´WRSPRGµ18//
YSLBSULQWI´0RGXOHWRSPRGLVDQLQVWDQFHRIV?Qµ
YSLBJHWBVWUYSL'HI1DPHPRG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBJHWBV\VWIBLQIR
YSLBJHWBV\VWIBLQIR
6\QRSVLV
5HWULHYHLQIRUPDWLRQDERXWDXVHUGHÀQHGV\VWHPWDVNIXQFWLRQUHODWHGFDOOEDFN
6\QWD[
YSLBJHWBV\VWIBLQIRREMV\VWIBGDWDBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
YSL+DQGOH
REM
SBYSLBV\VWIBGDWD
V\VWIBGDWDBS
'HVFULSWLRQ
+DQGOHWRDV\VWHPWDVNIXQFWLRQUHODWHGFDOOEDFN
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJFDOOEDFNLQIRUPDWLRQ
8VHYSLBJHWBFEBLQIRWRUHWULHYHLQIRUPDWLRQDERXWDVLPXODWLRQUHODWHGFDOOEDFN
7KH93,URXWLQHYSLBJHWBV\VWIBLQIRVKDOOUHWXUQLQIRUPDWLRQDERXWDXVHUGHILQHGV\VWHPWDVNRUIXQFWLRQFDOOEDFN
LQDQVBYSLBV\VWIBGDWDVWUXFWXUH7KHPHPRU\IRUWKLVVWUXFWXUHVKDOOEHDOORFDWHGE\WKHXVHU
7KH VBYSLBV\VWIBGDWD VWUXFWXUH XVHG E\ YSLBJHWBV\VWIBLQIR LV GHÀQHG LQ YSLBXVHUK DQG LV OLVWHG LQ
)LJXUH
W\SHGHIVWUXFWWBYSLBV\VWIBGDWD^
LQWW\SH
YSL6\V>7DVN)XQFWLRQ@
LQWV\VIXQFW\SH YSL6\V)XQF>,QW5HDO7LPH6L]HG@
FKDUWIQDPH
ILUVWFKDUDFWHUPXVWEH´µ
LQWFDOOWI
LQWFRPSLOHWI
LQWVL]HWI IRUYSL6\V)XQF6L]HGV\VWHPIXQFWLRQVRQO\
FKDUXVHUBGDWD
`VBYSLBV\VWIBGDWDSBYSLBV\VWIBGDWD
)LJXUH³7KHVBYSLBV\VWIBGDWDVWUXFWXUHGHÀQLWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBJHWBWLPH
YSLBJHWBWLPH
6\QRSVLV
5HWULHYHWKHFXUUHQWVLPXODWLRQ
6\QWD[
YSLBJHWBWLPHREMWLPHBS
7\SH
5HWXUQV
$UJXPHQWV
'HVFULSWLRQ
YRLG
7\SH
1DPH
YSL+DQGOH
REM
SBYSLBWLPH
WLPHBS
'HVFULSWLRQ
+DQGOHWRDQREMHFW
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJWLPHLQIRUPDWLRQ
5HODWHG
URXWLQHV
7KH93,URXWLQHYSLBJHWBWLPHVKDOOUHWULHYHWKHFXUUHQWVLPXODWLRQWLPHXVLQJWKHWLPHVFDOHRIWKHREMHFW,IREMLV
18//WKHVLPXODWLRQWLPHLVUHWULHYHGXVLQJWKHVLPXODWLRQWLPHXQLW7KHWLPHBS!W\SHILHOGVKDOOEHVHWWRLQGLFDWH
LIVFDOHGUHDORUVLPXODWLRQWLPHLVGHVLUHG7KHPHPRU\IRUWKHWLPHBSVWUXFWXUHVKDOOEHDOORFDWHGE\WKHXVHU
7KHVBYSLBWLPHVWUXFWXUHXVHGE\YSLBJHWBWLPHLVGHÀQHGLQYSLBXVHUKDQGLVOLVWHGLQ)LJXUH>WKLVLV
WKHVDPHWLPHVWUXFWXUHDVXVHGE\YSLBSXWBYDOXH@
W\SHGHIVWUXFWWBYSLBWLPH^
LQWW\SH
IRUYSL6FDOHG5HDO7LPHYSL6LP7LPH
XQVLJQHGLQWKLJKORZIRUYSL6LP7LPH
GRXEOHUHDO
IRUYSL6FDOHG5HDO7LPH
`VBYSLBWLPHSBYSLBWLPH
)LJXUH³7KHVBYSLBWLPHVWUXFWXUHGHÀQLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBJHWBYDOXH
YSLBJHWBYDOXH
6\QRSVLV
5HWULHYHWKHVLPXODWLRQYDOXHRIDQREMHFW
6\QWD[
YSLBJHWBYDOXHREMYDOXHBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
YSL+DQGOH
REM
SBYSLBYDOXH
YDOXHBS
'HVFULSWLRQ
+DQGOHWRDQH[SUHVVLRQ
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJYDOXHLQIRUPDWLRQ
8VHYSLBSXWBYDOXHWRVHWWKHYDOXHRIDQREMHFW
7KH93,URXWLQHYSLBJHWBYDOXHVKDOOUHWULHYHWKHVLPXODWLRQYDOXHRI93,REMHFWV7KHYDOXHVKDOOEHSODFHGLQDQ
VBYSLBYDOXHVWUXFWXUHZKLFKKDVEHHQDOORFDWHGE\WKHXVHU7KHIRUPDWRIWKHYDOXHVKDOOEHVHWE\WKHIRUPDW
ÀHOGRIWKHVWUXFWXUH
:KHQWKHIRUPDWÀHOGLVYSL2EM7\SH9DOWKHURXWLQHVKDOOÀOOLQWKHYDOXHDQGFKDQJHWKHIRUPDWÀHOGEDVHGRQWKH
REMHFWW\SHDVIROORZV
³
³
³
³
³
)RUDQLQWHJHUYSL,QW9DO
)RUDUHDOYSL5HDO9DO
)RUDVFDODUHLWKHUYSL6FDODURUYSL6WUHQJWK
)RUDWLPHYDULDEOHYSL7LPH9DOZLWKYSL6LP7LPH
)RUDYHFWRUYSL9HFWRU9DO
7KHEXIIHUWKLVURXWLQHXVHVIRUVWULQJYDOXHVVKDOOEHGLIIHUHQWIURPWKHEXIIHUWKDWYSLBJHWBVWUVKDOOXVH
7KH VBYSLBYDOXH VBYSLBYHFYDO DQG VBYSLBVWUHQJWKYDO VWUXFWXUHV XVHG E\ YSLBJHWBYDOXH DUH
GHÀQHGLQYSLBXVHUKDQGDUHOLVWHGLQ)LJXUHVDQG
W\SHGHIVWUXFWWBYSLBYDOXH^
LQWIRUPDW YSL>>%LQ2FW'HF+H[@6WU6FDODU,QW5HDO6WULQJ
7LPH9HFWRU6WUHQJWK2EM7\SH@9DO
XQLRQ^
FKDUVWU
LQWVFDODUYSL>;=@
LQWLQWHJHU
GRXEOHUHDO
VWUXFWWBYSLBWLPHWLPH
VWUXFWWBYSLBYHFYDOYHFWRU
VWUXFWWBYSLBVWUHQJWKYDOVWUHQJWK
FKDUPLVF
`YDOXH
`VBYSLBYDOXHSBYSLBYDOXH
)LJXUH³7KHVBYSLBYDOXHVWUXFWXUHGHÀQLWLRQ
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
W\SHGHIVWUXFWWBYSLBYHFYDO^
LQWDYDOEYDOELWHQFRGLQJDE ; =
`VBYSLBYHFYDOSBYSLBYHFYDO
)LJXUH³7KHVBYSLBYHFYDOVWUXFWXUHGHÀQLWLRQ
W\SHGHIVWUXFWWBYSLBVWUHQJWKYDO^
LQWORJLF
YSL>;=@
LQWVV
UHIHUWRVWUHQJWKFRGLQJLQWKH/50
`VBYSLBVWUHQJWKYDOSBYSLBVWUHQJWKYDO
)LJXUH³7KHVBYSLBVWUHQJWKYDOVWUXFWXUHGHÀQLWLRQ
)RUYHFWRUVWKHSBYSLBYHFYDOÀHOGVKDOOSRLQWWRDQDUUD\RIVBYSLBYHFYDOVWUXFWXUHV7KHVL]HRIWKLVDUUD\VKDOO
EHGHWHUPLQHGE\WKHVL]HRIWKHYHFWRUZKHUHDUUD\BVL]H YHFWRUBVL]H7KHOVERIWKHYHFWRUVKDOOEH
UHSUHVHQWHG E\ WKH OVE RI WKH LQGH[HG HOHPHQW RI VBYSLBYHFYDO DUUD\ 7KH UG ELW RI WKH YHFWRU VKDOO EH
UHSUHVHQWHGE\WKHOVERIWKHLQGH[HGHOHPHQWRIWKHDUUD\DQGVRRQ7KHPHPRU\IRUWKHXQLRQPHPEHUVVWUWLPH
YHFWRU VWUHQJWK DQG PLVF RI WKH YDOXH XQLRQ LQ WKH VBYSLBYDOXH VWUXFWXUH VKDOO EH SURYLGHG E\ WKH URXWLQH
YSLBJHWBYDOXH7KLVPHPRU\VKDOORQO\EHYDOLGXQWLOWKHQH[WFDOOWRYSLBJHWBYDOXH>1RWHWKDWWKHXVHUPXVW
SURYLGHWKHPHPRU\IRUWKHVHPHPEHUVZKHQFDOOLQJYSLBSXWBYDOXH@:KHQDYDOXHFKDQJHFDOOEDFNRFFXUVIRUD
YDOXHW\SHRIYSL9HFWRU9DOWKHV\VWHPVKDOOFUHDWHWKHDVVRFLDWHGPHPRU\DQDUUD\RIVBYSLBYHFYDOVWUXFWXUHV
DQGIUHHWKHPHPRU\XSRQWKHUHWXUQRIWKHFDOOEDFN
7DEOH³5HWXUQYDOXHÀHOGRIWKHVBYSLBYDOXHVWUXFWXUHXQLRQ
6HFWLRQ
)RUPDW
8QLRQPHPEHU
5HWXUQGHVFULSWLRQ
YSL%LQ6WU9DO
VWU
6WULQJRIELQDU\FKDUV>[]@
YSL2FW6WU9DO
VWU
6WULQJRIRFWDOFKDUV>²[;]=@
[
:KHQDOOWKHELWVDUH[
;
:KHQVRPHRIWKHELWVDUH[
]
:KHQDOOWKHELWVDUH]
=
:KHQVRPHRIWKHELWVDUH]
YSL'HF6WU9DO
VWU
6WULQJRIGHFLPDOFKDUV>²@
YSL+H[6WU9DO
VWU
6WULQJRIKH[FKDUV>²I[;]=@
[
:KHQDOOWKHELWVDUH[
;
:KHQVRPHRIWKHELWVDUH[
]
:KHQDOOWKHELWVDUH]
=
:KHQVRPHRIWKHELWVDUH]
YSL6FDODU9DO
VFDODU
YSLYSLYSL;YSL=YSL+YSL/
YSL,QW9DO
LQWHJHU
,QWHJHUYDOXHRIWKHKDQGOH$Q\ELWV[RU]LQWKHYDOXH
RIWKHREMHFWDUHPDSSHGWRD
YSL5HDO9DO
UHDO
9DOXHRIWKHKDQGOHDVDGRXEOH
YSL6WULQJ9DO
VWU
$VWULQJZKHUHHDFKELWJURXSRIWKHYDOXHRIWKH
REMHFWLVDVVXPHGWRUHSUHVHQWDQ$6&,,FKDUDFWHU
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
7DEOH³5HWXUQYDOXHÀHOGRIWKHVBYSLBYDOXHVWUXFWXUHXQLRQFRQWLQXHG
)RUPDW
8QLRQPHPEHU
YSL7LPH9DO
WLPH
YSL9HFWRU9DO
YHFWRU
YSL6WUHQJWK9DO
VWUHQJWK
YSL2EMHFW9DO
³
5HWXUQGHVFULSWLRQ
,QWHJHUYDOXHRIWKHKDQGOHXVLQJWZRLQWHJHUV
DYDOEYDOUHSUHVHQWDWLRQRIWKHYDOXHRIWKHREMHFW
9DOXHSOXVVWUHQJWKLQIRUPDWLRQRIDVFDODUREMHFWRQO\
5HWXUQDYDOXHLQWKHFORVHVWIRUPDWRIWKHREMHFW
127(³,IWKHREMHFWKDVDUHDOYDOXHLWVKDOOEHFRQYHUWHGWRDQLQWHJHUXVLQJWKHURXQGLQJGHÀQHGE\WKH9HULORJ
+'/EHIRUHEHLQJUHWXUQHGLQDIRUPDWRWKHUWKDQYSL5HDO9DO
7RJHWWKH$6&,,YDOXHVRI8'3WDEOHHQWULHVDVH[SODLQHGLQ7DEOHWKHSBYSLBYHFYDOÀHOGVKDOOSRLQWWRDQDUUD\
RI VBYSLBYHFYDO VWUXFWXUHV 7KH VL]H RI WKLV DUUD\ VKDOO EH GHWHUPLQHG E\ WKH VL]H RI WKH WDEOH HQWU\ QR RI
V\PEROVSHUWDEOHHQWU\ZKHUHDUUD\BVL]H WDEOHBHQWU\BVL]H(DFKV\PEROVKDOOUHTXLUHDQLEEOHWKH
RUGHULQJ RI WKH V\PEROV ZLWKLQ VBYSLBYHFYDO VKDOO EH WKH PRVW VLJQLÀFDQW QLEEOH RI DELW ÀUVW WKHQ WKH OHDVW
VLJQLÀFDQWQLEEOHRIDELWWKHQWKHPRVWVLJQLÀFDQWQLEEOHRIEELWDQGWKHQWKHOHDVWVLJQLÀFDQWQLEEOHRIEELW(DFK
V\PEROFDQEHHLWKHURQHRUWZRFKDUDFWHUVZKHQLWLVDVLQJOHFKDUDFWHUWKHVHFRQGKDOIRIWKHQLEEOHVKDOOEHDQ
$6&,,´?µ
7KHPLVFÀHOGLQWKHVBYSLBYDOXHVWUXFWXUHVKDOOSURYLGHIRUDOWHUQDWLYHYDOXHW\SHVZKLFKFDQEHLPSOHPHQWDWLRQ
VSHFLÀF,IWKLVÀHOGLVXWLOL]HGRQHRUPRUHFRUUHVSRQGLQJIRUPDWW\SHVVKDOODOVREHSURYLGHG
,QWKHIROORZLQJH[DPSOHWKHELQDU\YDOXHRIHDFKQHWWKDWLVFRQWDLQHGLQDSDUWLFXODUPRGXOHDQGZKRVHQDPHEHJLQV
ZLWK D SDUWLFXODU VWULQJ LV GLVSOD\HG >7KLV IXQFWLRQ PDNHV XVH RI WKH VWUFPS IDFLOLW\ QRUPDOO\ GHFODUHG LQ D
VWULQJK&OLEUDU\@
YRLGGLVSOD\BFHUWDLQBQHWBYDOXHVPRGWDUJHW
YSL+DQGOHPRG
FKDUWDUJHW
^
VWDWLFVBYSLBYDOXHYDOXHBV ^YSL%LQ6WU9DO`
VWDWLFSBYSLBYDOXHYDOXHBS YDOXHBV
YSL+DQGOHQHWLWU
`
LWU YSLBLWHUDWHYSL1HWPRG
ZKLOHQHW YSLBVFDQLWU
^
FKDUQHWBQDPH YSLBJHWBVWUYSL1DPHQHW
LIVWUFPSWDUJHWQHWBQDPH ^
YSLBJHWBYDOXHQHWYDOXHBS
YSLBSULQWI´9DOXHRIQHWVV?Qµ
YSLBJHWBVWUYSL)XOO1DPHQHWYDOXHBS!YDOXHVWU
`
`
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBJHWBYORJBLQIR
YSLBJHWBYORJBLQIR
6\QRSVLV
5HWULHYHLQIRUPDWLRQDERXW9HULORJVLPXODWLRQH[HFXWLRQ
6\QWD[
YSLBJHWBYORJBLQIRYORJBLQIRBS
7\SH
5HWXUQV
$UJXPHQWV
ERRO
'HVFULSWLRQ
WUXHRQVXFFHVVDQGIDOVHRQIDLOXUH
7\SH
1DPH
SBYSLBYORJBLQIR
YORJBLQIRBS
'HVFULSWLRQ
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJVLPXODWLRQLQIRUPDWLRQ
7KH93,URXWLQHYSLBJHWBYORJBLQIRVKDOOREWDLQWKHIROORZLQJLQIRUPDWLRQDERXW9HULORJSURGXFWH[HFXWLRQ
³ 7KHQXPEHURILQYRFDWLRQRSWLRQVDUJF
³ ,QYRFDWLRQRSWLRQYDOXHVDUJY
³ 3URGXFWDQGYHUVLRQVWULQJV
7KHLQIRUPDWLRQVKDOOEHFRQWDLQHGLQDQVBYSLBYORJBLQIRVWUXFWXUH7KHURXWLQHVKDOOUHWXUQWUXHRQVXFFHVV
DQGIDOVHRQIDLOXUH
7KHVBYSLBYORJBLQIRVWUXFWXUHXVHGE\YSLBJHWBYORJBLQIRLVGHÀQHGLQYSLBXVHUKDQGLVOLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBYSLBYORJBLQIR^
LQWDUJF
FKDUDUJY
FKDUSURGXFW
FKDUYHUVLRQ
`VBYSLBYORJBLQIRSBYSLBYORJBLQIR
)LJXUH³7KHVBYSLBYORJBLQIRVWUXFWXUHGHÀQLWLRQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBKDQGOH
YSLBKDQGOH
6\QRSVLV
2EWDLQDKDQGOHWRDQREMHFWZLWKDRQHWRRQHUHODWLRQVKLS
6\QWD[
YSLBKDQGOHW\SHUHI
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRDQREMHFW
7\SH
1DPH
LQW
W\SH
YSL+DQGOH
UHI
'HVFULSWLRQ
$QLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHW\SHRIREMHFWIRU
ZKLFKWRREWDLQDKDQGOH
+DQGOHWRDUHIHUHQFHREMHFW
8VHYSLBLWHUDWHDQGYSLBVFDQWRREWDLQKDQGOHVWRREMHFWVZLWKDRQHWRPDQ\UHODWLRQVKLS
8VHYSLBKDQGOHBPXOWLWRREWDLQDKDQGOHWRDQREMHFWZLWKDPDQ\WRRQHUHODWLRQVKLS
7KH 93, URXWLQH YSLBKDQGOH VKDOO UHWXUQ WKH REMHFW RI W\SH W\SH DVVRFLDWHG ZLWK REMHFW UHI 7KH RQHWRRQH
UHODWLRQVKLSVWKDWDUHWUDYHUVHGZLWKWKLVURXWLQHDUHLQGLFDWHGDVVLQJOHDUURZVLQWKHREMHFWGLDJUDPV
7KHIROORZLQJH[DPSOHDSSOLFDWLRQGLVSOD\VHDFKSULPLWLYHWKDWDQLQSXWQHWGULYHV
YRLGGLVSOD\BGULYHQBSULPLWLYHVQHW
YSL+DQGOHQHW
^
YSL+DQGOHORDGSULPLWU
YSLBSULQWI´1HWVGULYHVWHUPLQDOVRIWKHSULPLWLYHV?Qµ
YSLBJHWBVWUYSL)XOO1DPHQHW
LWU YSLBLWHUDWHYSL/RDGQHW
LILWU
UHWXUQ
ZKLOHORDG YSLBVFDQLWU
^
VZLWFKYSLBJHWYSL7\SHORDG
^
FDVHYSL*DWH
FDVHYSL6ZLWFK
FDVHYSL8GS
SULP YSLBKDQGOHYSL3ULPLWLYHORDG
YSLBSULQWI´?WV?QµYSLBJHWBVWUYSL)XOO1DPHSULP
`
`
`
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBKDQGOHBE\BLQGH[
YSLBKDQGOHBE\BLQGH[
6\QRSVLV
*HWDKDQGOHWRDQREMHFWXVLQJLWVLQGH[QXPEHUZLWKLQDSDUHQWREMHFW
6\QWD[
YSLBKDQGOHBE\BLQGH[REMLQGH[
7\SH
5HWXUQV
$UJXPHQWV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRDQREMHFW
7\SH
1DPH
YSL+DQGOH
REM
LQW
LQGH[
'HVFULSWLRQ
+DQGOHWRDQREMHFW
,QGH[QXPEHURIWKHREMHFWIRUZKLFKWRREWDLQDKDQGOH
7KH93,URXWLQHYSLBKDQGOHBE\BLQGH[VKDOOUHWXUQDKDQGOHWRDQREMHFWEDVHGRQWKHLQGH[QXPEHURIWKHREMHFW
ZLWKLQDSDUHQWREMHFW7KLVIXQFWLRQFDQEHXVHGWRDFFHVVDOOREMHFWVWKDWFDQDFFHVVDQH[SUHVVLRQXVLQJYSL,QGH[
$UJXPHQW REM VKDOO UHSUHVHQW WKH SDUHQW RI WKH LQGH[HG REMHFW )RU H[DPSOH WR DFFHVV D QHWELWREM ZRXOG EH WKH
DVVRFLDWHGQHWZKLOHIRUDPHPRU\ZRUGREMZRXOGEHWKHDVVRFLDWHGPHPRU\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBKDQGOHBE\BQDPH
YSLBKDQGOHBE\BQDPH
6\QRSVLV
*HWDKDQGOHWRDQREMHFWZLWKDVSHFLÀFQDPH
6\QWD[
YSLBKDQGOHBE\BQDPHQDPHVFRSH
7\SH
5HWXUQV
$UJXPHQWV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRDQREMHFW
7\SH
1DPH
'HVFULSWLRQ
FKDU
QDPH
$FKDUDFWHUVWULQJRUSRLQWHUWRDVWULQJFRQWDLQLQJWKHQDPH
RIDQREMHFW
YSL+DQGOH
VFRSH
+DQGOHWRD9HULORJ+'/VFRSH
7KH93,URXWLQHYSLBKDQGOHBE\BQDPHVKDOOUHWXUQDKDQGOHWRDQREMHFWZLWKDVSHFLÀFQDPH7KLVIXQFWLRQFDQEH
DSSOLHGWRDOOREMHFWVZLWKDIXOOQDPHSURSHUW\7KHQDPHFDQEHKLHUDUFKLFDORUVLPSOH,IVFRSHLV18//WKHQQDPH
VKDOOEHVHDUFKHGIRUIURPWKHWRSOHYHORIKLHUDUFK\2WKHUZLVHQDPHVKDOOEHVHDUFKHGIRUIURPVFRSHXVLQJWKH
VFRSHVHDUFKUXOHVGHÀQHGE\WKH9HULORJ+'/
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBKDQGOHBPXOWL
YSLBKDQGOHBPXOWL
6\QRSVLV
2EWDLQDKDQGOHWRLQWHUPRGXOHSDWKVZLWKDPDQ\WRRQHUHODWLRQVKLS
6\QWD[
YSLBKDQGOHBPXOWLW\SHUHIUHI
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRDQREMHFW
7\SH
1DPH
LQW
W\SH
YSL+DQGOH
UHIUHI
'HVFULSWLRQ
$QLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHW\SHRIREMHFWIRU
ZKLFKWRREWDLQDKDQGOH
+DQGOHVWRWZRRUPRUHUHIHUHQFHREMHFWV
8VHYSLBLWHUDWHDQGYSLBVFDQWRREWDLQKDQGOHVWRREMHFWVZLWKDRQHWRPDQ\UHODWLRQVKLS
8VHYSLBKDQGOHWRREWDLQKDQGOHVWRREMHFWVZLWKDRQHWRRQHUHODWLRQVKLS
7KH93,URXWLQHYSLBKDQGOHBPXOWLVKDOOUHWXUQDKDQGOHWRREMHFWVRIW\SHYSL,QWHU0RG3DWKDVVRFLDWHGZLWKDOLVW
RIRXWSXWSRUWDQGLQSXWSRUWUHIHUHQFHREMHFWV7KHSRUWVVKDOOEHRIWKHVDPHVL]HDQGFDQEHDWGLIIHUHQWOHYHOVRIWKH
KLHUDUFK\7KLVURXWLQHSHUIRUPVDPDQ\WRRQHRSHUDWLRQLQVWHDGRIWKHXVXDORQHWRRQHRURQHWRPDQ\
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBLWHUDWH
YSLBLWHUDWH
6\QRSVLV
2EWDLQDQLWHUDWRUKDQGOHWRREMHFWVZLWKDRQHWRPDQ\UHODWLRQVKLS
6\QWD[
YSLBLWHUDWHW\SHUHI
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRDQLWHUDWRUIRUDQREMHFW
7\SH
1DPH
LQW
W\SH
YSL+DQGOH
UHI
'HVFULSWLRQ
$QLQWHJHUFRQVWDQWUHSUHVHQWLQJWKHW\SHRIREMHFWIRU
ZKLFKWRREWDLQLWHUDWRUKDQGOHV
+DQGOHWRDUHIHUHQFHREMHFW
8VHYSLBVFDQWRWUDYHUVHWKH+'/KLHUDUFK\XVLQJWKHLWHUDWRUKDQGOHUHWXUQHGIURPYSLBLWHUDWH
8VHYSLBKDQGOHWRREWDLQKDQGOHVWRREMHFWZLWKDRQHWRRQHUHODWLRQVKLS
8VHYSLBKDQGOHBPXOWLWRREWDLQDKDQGOHWRDQREMHFWZLWKDPDQ\WRRQHUHODWLRQVKLS
7KH93, URXWLQH YSLBLWHUDWH VKDOO EH XVHG WR WUDYHUVH RQHWRPDQ\ UHODWLRQVKLSV ZKLFK DUH LQGLFDWHG DV GRXEOH
DUURZV LQ WKH REMHFW GLDJUDPV 7KH YSLBLWHUDWH URXWLQH VKDOO UHWXUQ D KDQGOH WR DQ LWHUDWRU ZKRVH W\SH VKDOO EH
YSL,WHUDWRUZKLFKFDQXVHGE\YSLBVFDQWRWUDYHUVHDOOREMHFWVRIW\SHW\SHDVVRFLDWHGZLWKREMHFWUHI7RJHWWKH
UHIHUHQFHREMHFWIURPWKHLWHUDWRUREMHFWXVHYSLBKDQGOHYSL8VHLWHUDWRUBKDQGOH,IWKHUHDUHQRREMHFWVRIW\SH
W\SHDVVRFLDWHGZLWKWKHUHIHUHQFHKDQGOHUHIWKHQWKHYSLBLWHUDWHURXWLQHVKDOOUHWXUQ18//
7KH IROORZLQJ H[DPSOH DSSOLFDWLRQ XVHV YSLBLWHUDWH DQG YSLBVFDQ WR GLVSOD\ HDFK QHW LQFOXGLQJ WKH VL]H IRU
YHFWRUVGHFODUHGLQWKHPRGXOH7KHH[DPSOHDVVXPHVLWVKDOOEHSDVVHGDYDOLGPRGXOHKDQGOH
YRLGGLVSOD\BQHWVPRG
YSL+DQGOHPRG
^
YSL+DQGOHQHW
YSL+DQGOHLWU
YSLBSULQWI´1HWVGHFODUHGLQPRGXOHV?Qµ
YSLBJHWBVWUYSL)XOO1DPHPRG
`
LWU YSLBLWHUDWHYSL1HWPRG
ZKLOHQHW YSLBVFDQLWU
^
YSLBSULQWI´?WVµYSLBJHWBVWUYSL1DPHQHW
LIYSLBJHWYSL9HFWRUQHW
^
YSLBSULQWI´RIVL]HG?QµYSLBJHWYSL6L]HQHW
`
HOVHYSLBSULQWI´?Qµ
`
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBPFGBFORVH
YSLBPFGBFORVH
6\QRSVLV
&ORVHRQHRUPRUHÀOHVRSHQHGE\YSLBPFGBRSHQ
6\QWD[
YSLBPFGBFORVHPFG
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
XQVLJQHGLQW
'HVFULSWLRQ
LIVXFFHVVIXOWKHPFGRIXQFORVHGFKDQQHOVLIXQVXFFHVVIXO
7\SH
1DPH
XQVLJQHGLQW
PFG
'HVFULSWLRQ
$PXOWLFKDQQHOGHVFULSWRUUHSUHVHQWLQJWKHÀOHVWRFORVH
8VHYSLBPFGBRSHQWRRSHQDÀOH
8VHYSLBPFGBSULQWIWRZULWHWRDQRSHQHGÀOH
8VHYSLBPFGBQDPHWRJHWWKHQDPHRIDÀOHUHSUHVHQWHGE\DFKDQQHOGHVFULSWRU
7KH93,URXWLQHYSLBPFGBFORVHVKDOOFORVHWKHÀOHVVSHFLÀHGE\DPXOWLFKDQQHOGHVFULSWRUPFG6HYHUDOFKDQQHOV
FDQ EH FORVHG VLPXOWDQHRXVO\ VLQFH FKDQQHOV DUH UHSUHVHQWHG E\ GLVFUHWH ELWV LQ WKH LQWHJHU PFG 2Q VXFFHVV WKLV
URXWLQHUHWXUQVDRQHUURULWUHWXUQVWKHPFGYDOXHRIWKHXQFORVHGFKDQQHOV
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBPFGBQDPH
YSLBPFGBQDPH
6\QRSVLV
*HWWKHQDPHRIDÀOHUHSUHVHQWHGE\DFKDQQHOGHVFULSWRU
6\QWD[
YSLBPFGBQDPHFG
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
FKDU
'HVFULSWLRQ
3RLQWHUWRDFKDUDFWHUVWULQJFRQWDLQLQJWKHQDPHRIDÀOH
7\SH
1DPH
XQVLJQHGLQW
FG
'HVFULSWLRQ
$VLQJOHFKDQQHOGHVFULSWRUUHSUHVHQWLQJDÀOH
8VHYSLBPFGBRSHQWRRSHQDÀOH
8VHYSLBPFGBFORVHWRFORVHÀOHV
8VHYSLBPFGBSULQWIWRZULWHWRDQRSHQHGÀOH
7KH93,URXWLQHYSLBPFGBQDPHVKDOOUHWXUQWKHQDPHRIDÀOHUHSUHVHQWHGE\DVLQJOHFKDQQHOGHVFULSWRUFG2Q
HUURUWKHURXWLQHVKDOOUHWXUQ18//
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBPFGBRSHQ
YSLBPFGBRSHQ
6\QRSVLV
2SHQDÀOHIRUZULWLQJ
6\QWD[
YSLBPFGBRSHQILOH
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
XQVLJQHGLQW
'HVFULSWLRQ
$PXOWLFKDQQHOGHVFULSWRUUHSUHVHQWLQJWKHÀOHWKDWZDVRSHQHG
7\SH
1DPH
'HVFULSWLRQ
FKDU
ÀOH
$FKDUDFWHUVWULQJRUSRLQWHUWRDVWULQJFRQWDLQLQJWKHÀOH
QDPHWREHRSHQHG
8VHYSLBPFGBFORVHWRFORVHDÀOH
8VHYSLBPFGBSULQWIWRZULWHWRDQRSHQHGÀOH
8VHYSLBPFGBQDPHWRJHWWKHQDPHRIDÀOHUHSUHVHQWHGE\DFKDQQHOGHVFULSWRU
7KH93,URXWLQHYSLBPFGBRSHQVKDOORSHQDÀOHIRUZULWLQJDQGUHWXUQDFRUUHVSRQGLQJPXOWLFKDQQHOGHVFULSWRU
QXPEHUPFG7KHIROORZLQJFKDQQHOGHVFULSWRUVDUHSUHGHÀQHGDQGVKDOOEHDXWRPDWLFDOO\RSHQHGE\WKHV\VWHP
³ 'HVFULSWRULVVWGRXW
³ 'HVFULSWRULVVWGHUU
³ 'HVFULSWRULVWKHFXUUHQWORJÀOH
7KHYSLBPFGBRSHQURXWLQHVKDOOUHWXUQDRQHUURU,IWKHÀOHLVDOUHDG\RSHQHGYSLBPFGBRSHQVKDOOUHWXUQWKH
GHVFULSWRUQXPEHU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBPFGBSULQWI
YSLBPFGBSULQWI
6\QRSVLV
:ULWHWRRQHRUPRUHÀOHVRSHQHGZLWKYSLBPFGBRSHQ
6\QWD[
YSLBPFGBSULQWIPFGIRUPDWIRUPDW
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHQXPEHURIFKDUDFWHUVZULWWHQ
7\SH
1DPH
'HVFULSWLRQ
XQVLJQHGLQW
PFG
$PXOWLFKDQQHOGHVFULSWRUUHSUHVHQWLQJWKHÀOHVWRZKLFKWR
ZULWH
FKDU
IRUPDW
$IRUPDWVWULQJXVLQJWKH&ISULQWIIRUPDW
8VHYSLBPFGBRSHQWRRSHQDÀOH
8VHYSLBPFGBFORVHWRFORVHDÀOH
8VHYSLBPFGBQDPHWRJHWWKHQDPHRIDÀOHUHSUHVHQWHGE\DFKDQQHOGHVFULSWRU
7KH93,URXWLQHYSLBPFGBSULQWIVKDOOZULWHWRRQHRUPRUHFKDQQHOVXSWRGHWHUPLQHGE\WKHPFG$QPFGRI
ELW VHW FRUUHVSRQGV WR &KDQQHO D PFG RI ELW VHW FRUUHVSRQGV WR &KDQQHO D PFG RI ELW VHW
FRUUHVSRQGVWR&KDQQHODQGVRRQ&KDQQHOLVVWGRXWFKDQQHOLVVWGHUUDQGFKDQQHOLVWKHFXUUHQWORJÀOH
6HYHUDOFKDQQHOVFDQEHZULWWHQWRVLPXOWDQHRXVO\VLQFHFKDQQHOVDUHUHSUHVHQWHGE\GLVFUHWHELWVLQWKHLQWHJHUPFG
7KHWH[WWREHZULWWHQVKDOOEHFRQWUROOHGE\RQHRUPRUHIRUPDWVWULQJV7KHIRUPDWVWULQJVVKDOOXVHWKHVDPHIRUPDW
DVWKH&ISULQWIURXWLQH7KHURXWLQHVKDOOUHWXUQWKHQXPEHURIFKDUDFWHUVSULQWHG
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBSULQWI
YSLBSULQWI
6\QRSVLV
:ULWHWRVWGRXWDQGWKHFXUUHQWSURGXFWORJÀOH
6\QWD[
YSLBSULQWIIRUPDWIRUPDW
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
LQW
'HVFULSWLRQ
7KHQXPEHURIFKDUDFWHUVZULWWHQ
7\SH
1DPH
FKDU
IRUPDW
'HVFULSWLRQ
$IRUPDWVWULQJXVLQJWKH&SULQWIIRUPDW
8VHYSLBPFGBSULQWIWRZULWHWRDQRSHQHGÀOH
7KH93,URXWLQHYSLBSULQWIVKDOOZULWHWRERWKVWGRXWDQGWKHFXUUHQWSURGXFWORJÀOH7KHIRUPDWVWULQJVVKDOOXVH
WKH VDPH IRUPDW DV WKH & SULQWI URXWLQH 7KH URXWLQH VKDOO UHWXUQ WKH QXPEHU RI FKDUDFWHUV SULQWHG DQG WKH
URXWLQHVKDOOUHWXUQ(2)LIDQHUURURFFXUUHG
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBSXWBGHOD\V
YSLBSXWBGHOD\V
6\QRSVLV
6HWWKHGHOD\VRUWLPLQJOLPLWVRIDQREMHFW
6\QWD[
YSLBSXWBGHOD\VREMGHOD\BS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YRLG
7\SH
1DPH
YSL+DQGOH
REM
SBYSLBGHOD\
GHOD\BS
'HVFULSWLRQ
+DQGOHWRDQREMHFW
3RLQWHUWRDVWUXFWXUHFRQWDLQLQJGHOD\LQIRUPDWLRQ
8VHYSLBJHWBGHOD\VWRUHWULHYHGHOD\VRUWLPLQJOLPLWVRIDQREMHFW
7KH 93, URXWLQH YSLBSXWBGHOD\V VKDOO VHW WKH GHOD\V RU WLPLQJ OLPLWV RI DQ REMHFW DV LQGLFDWHG LQ WKH GHOD\BS
VWUXFWXUH7KHVDPHRUGHULQJRIGHOD\VVKDOOEHXVHGDVGHVFULEHGLQWKHYSLBJHWBGHOD\VIXQFWLRQ,IRQO\WKHGHOD\
FKDQJHVDQGQRWWKHSXOVHOLPLWVWKHSXOVHOLPLWVVKDOOUHWDLQWKHYDOXHVWKH\KDGEHIRUHWKHGHOD\VZKHUHDOWHUHG
7KHVBYSLBGHOD\DQGVBYSLBWLPHVWUXFWXUHVXVHGE\ERWKYSLBJHWBGHOD\VDQGYSLBSXWBGHOD\VDUHGHÀQHG
LQYSLBXVHUKDQGDUHOLVWHGLQ)LJXUHVDQG
W\SHGHIVWUXFWWBYSLBGHOD\^
VWUXFWWBYSLBWLPHGD SWUWRXVHUDOORFDWHGDUUD\RIGHOD\
YDOXHV
LQWQRBRIBGHOD\V
QXPEHURIGHOD\V
LQWWLPHBW\SH
>YSL6FDOHG5HDO7LPHYSL6LP7LPH@
ERROPWPBIODJ
WUXHIRUPWP
ERRODSSHQGBIODJ
WUXHIRUDSSHQGIDOVHIRUUHSODFH
ERROSXOVHUHBIODJ
WUXHIRUSXOVHUHYDOXHV
`VBYSLBGHOD\SBYSLBGHOD\
)LJXUH³7KHVBYSLBGHOD\VWUXFWXUHGHÀQLWLRQ
W\SHGHIVWUXFWWBYSLBWLPH
^
LQWW\SH
>YSL6FDOHG5HDO7LPHYSL6LP7LPH@
XQVLJQHGLQWKLJKORZIRUYSL6LP7LPH
GRXEOHUHDO
IRUYSL6FDOHG5HDO7LPH
`VBYSLBWLPHSBYSLBWLPH
)LJXUH³7KHVBYSLBWLPHVWUXFWXUHGHÀQLWLRQ
7KHGDÀHOGRIWKHVBYSLBGHOD\VWUXFWXUHVKDOOEHDXVHUDOORFDWHGDUUD\RIVBYSLBWLPHVWUXFWXUHV7KLVDUUD\
VKDOOVWRUHWKHGHOD\YDOXHVWREHZULWWHQE\YSLBSXWBGHOD\V7KHQXPEHURIHOHPHQWVLQWKLVDUUD\VKDOOEHWKHVDPH
DVGHVFULEHGLQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
7KHIROORZLQJH[DPSOHDSSOLFDWLRQDFFHSWVDPRGXOHSDWKKDQGOHULVHDQGIDOOGHOD\VDQGUHSODFHVWKHGHOD\VRIWKH
LQGLFDWHGSDWK
YRLGVHWBSDWKBULVHBIDOOBGHOD\VSDWKULVHIDOO
YSL+DQGOHSDWK
GRXEOHULVHIDOO
^
VWDWLFVBYSLBWLPHSDWKBGD>@
VWDWLFVBYSLBGHOD\GHOD\BV ^18//YSL6FDOHG5HDO7LPH`
VWDWLFSBYSLBGHOD\GHOD\BS GHOD\BV
GHOD\BVGD SDWKBGD
SDWKBGD>@UHDO ULVH
SDWKBGD>@UHDO IDOO
`
6HFWLRQ
YSLBSXWBGHOD\VSDWKGHOD\BS
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBSXWBYDOXH
YSLBSXWBYDOXH
6\QRSVLV
6HWDYDOXHRQDQREMHFW
6\QWD[
YSLBSXWBYDOXHREMYDOXHBSWLPHBSIODJV
7\SH
5HWXUQV
YSL+DQGOH
+DQGOHWRWKHVFKHGXOHGHYHQWFDXVHGE\YSLBSXWBYDOXH
7\SH
1DPH
YSL+DQGOH
REM
SBYSLBYDOXH
YDOXHBS
3RLQWHUWRDVWUXFWXUHZLWKYDOXHLQIRUPDWLRQ
SBYSLBWLPH
WLPHBS
3RLQWHUWRDVWUXFWXUHZLWKGHOD\LQIRUPDWLRQ
LQW
ÁDJV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
'HVFULSWLRQ
+DQGOHWRDQREMHFW
,QWHJHUFRQVWDQWVWKDWVHWWKHGHOD\PRGH
8VHYSLBJHWBYDOXHWRUHWULHYHWKHYDOXHRIDQH[SUHVVLRQ
7KH93,URXWLQHYSLBSXWBYDOXHVKDOOVHWVLPXODWLRQORJLFYDOXHVRQDQREMHFW7KHYDOXHWREHVHWVKDOOEHVWRUHGLQ
DQ VBYSLBYDOXH VWUXFWXUH WKDW KDV EHHQ DOORFDWHG 7KH GHOD\ WLPH EHIRUH WKH YDOXH LV VHW VKDOO EH VWRUHG LQ DQ
VBYSLBWLPHVWUXFWXUHWKDWKDVEHHQDOORFDWHG7KHURXWLQHFDQEHDSSOLHGWRQHWVUHJVYDULDEOHVPHPRU\ZRUGV
V\VWHPIXQFWLRQFDOOVVHTXHQWLDO8'3VDQGVFKHGXOHHYHQWV7KHÁDJVDUJXPHQWVKDOOEHXVHGWRGLUHFWWKHURXWLQHWR
XVHRQHRIWKHIROORZLQJGHOD\PRGHV
YSL,QHUWLDO'HOD\
$OOVFKHGXOHGHYHQWVRQWKHREMHFWVKDOOEHUHPRYHGEHIRUHWKLVHYHQWLVVFKHGXOHG
YSL7UDQVSRUW'HOD\
$OOHYHQWVRQWKHREMHFWVFKHGXOHGIRUWLPHVODWHUWKDQWKLVHYHQWVKDOOEHUHPRYHG
PRGLÀHGWUDQVSRUWGHOD\
YSL3XUH7UDQVSRUW'HOD\
1RHYHQWVRQWKHREMHFWVKDOOEHUHPRYHGWUDQVSRUWGHOD\
YSL1R'HOD\
7KHREMHFWVKDOOEHVHWWRWKHSDVVHGYDOXHZLWKQRGHOD\$UJXPHQWWLPHBSVKDOOEH
LJQRUHGDQGFDQEHVHWWR18//
YSL)RUFH)ODJ
7KHREMHFWVKDOOEHIRUFHGWRWKHSDVVHGYDOXHZLWKQRGHOD\VDPHDVWKH9HULORJ
+'/SURFHGXUDOIRUFH$UJXPHQWWLPHBSVKDOOEHLJQRUHGDQGFDQEHVHWWR18//
YSL5HOHDVH)ODJ
7KH REMHFW VKDOO EH UHOHDVHG IURP D IRUFHG YDOXH VDPH DV WKH 9HULORJ +'/
SURFHGXUDOUHOHDVH$UJXPHQWWLPHBSVKDOOEHLJQRUHGDQGFDQEHVHWWR18//7KH
YDOXHBSVKDOOFRQWDLQWKHFXUUHQWYDOXHRIWKHREMHFW
YSL&DQFHO(YHQW
$ SUHYLRXVO\ VFKHGXOHG HYHQW VKDOO EH FDQFHOOHG 7KH REMHFW SDVVHG WR
YSLBSXWBYDOXHVKDOOEHDKDQGOHWRDQREMHFWRIW\SHYSL6FKHG(YHQW
,I WKH ÁDJV DUJXPHQW DOVR KDV WKH ELW PDVN YSL5HWXUQ(YHQW YSLBSXWBYDOXH VKDOO UHWXUQ D KDQGOH RI W\SH
YSL6FKHG(YHQWWRWKHQHZO\VFKHGXOHGHYHQWSURYLGHGWKHUHLVVRPHIRUPRIDGHOD\DQGDQHYHQWLVVFKHGXOHG,IWKH
ELWPDVNLVQRWXVHGRULIQRGHOD\LVXVHGRULIDQHYHQWLVQRWVFKHGXOHGWKHUHWXUQYDOXHVKDOOEH18//
7KHKDQGOHWRWKHHYHQWFDQEHFDQFHOOHGE\FDOOLQJYSLBSXWBYDOXHZLWKWKHÁDJVHWWRYSL&DQFHO(YHQW,WVKDOOQRW
EHDQHUURUWRFDQFHODQHYHQWWKDWKDVDOUHDG\RFFXUUHG7KHVFKHGXOHGHYHQWFDQEHWHVWHGE\FDOOLQJYSLBJHWZLWK
WKHÁDJYSL6FKHGXOHG,IDQHYHQWLVFDQFHOOHGLWVKDOOVLPSO\EHUHPRYHGIURPWKHHYHQWTXHXH$Q\HIIHFWVWKDW
ZHUHFDXVHGE\VFKHGXOLQJWKHHYHQWVKDOOUHPDLQLQHIIHFWHJHYHQWVWKDWZKHUHFDQFHOOHGGXHWRLQHUWLDOGHOD\
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
&DOOLQJYSLBIUHHBREMHFWRQWKHKDQGOHVKDOOIUHHWKHKDQGOHEXWVKDOOQRWHIIHFWWKHHYHQW
6HTXHQWLDO8'3VVKDOOEHVHWWRWKHLQGLFDWHGYDOXHZLWKQRGHOD\UHJDUGOHVVRIDQ\GHOD\RQWKHSULPLWLYHLQVWDQFH
7KHVBYSLBYDOXHDQGVBYSLBWLPHVWUXFWXUHVXVHGE\YSLBSXWBYDOXHDUHGHÀQHGLQYSLBXVHUKDQGDUH
OLVWHGLQ)LJXUHVDQG
W\SHGHIVWUXFWWBYSLBYDOXH^
LQWIRUPDW YSL>>%LQ2FW'HF+H[@6WU6FDODU,QW5HDO6WULQJ
7LPH9HFWRU6WUHQJWK2EM7\SH@9DO
XQLRQ^
FKDUVWU
LQWVFDODUYSL>;=@
LQWLQWHJHU
GRXEOHUHDO
VWUXFWWBYSLBWLPHWLPH
VWUXFWWBYSLBYHFYDOYHFWRU
VWUXFWWBYSLBVWUHQJWKYDOVWUHQJWK
FKDUPLVF
`YDOXH
`VBYSLBYDOXHSBYSLBYDOXH
)LJXUH³7KHVBYSLBYDOXHVWUXFWXUHGHÀQLWLRQ
W\SHGHIVWUXFWWBYSLBWLPH^
LQWW\SH
IRUYSL6FDOHG5HDO7LPHYSL6LP7LPH
XQVLJQHGLQWKLJKORZIRUYSL6LP7LPH
GRXEOHUHDO
IRUYSL6FDOHG5HDO7LPH
`VBYSLBWLPHSBYSLBWLPH
)LJXUH³7KHVBYSLBWLPHVWUXFWXUHGHÀQLWLRQ
)RUYSL6FDOHG5HDO7LPHWKHLQGLFDWHGWLPHVKDOOEHLQWKHWLPHVFDOHDVVRFLDWHGZLWKWKHREMHFW
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBUHJLVWHUBFE
YSLBUHJLVWHUBFE
6\QRSVLV
5HJLVWHUVLPXODWLRQUHODWHGFDOOEDFNV
6\QWD[
YSLBUHJLVWHUBFEFEBGDWDBS
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
'HVFULSWLRQ
YSL+DQGOH
+DQGOHWRWKHFDOOEDFNREMHFW
7\SH
1DPH
SBFEBGDWD
FEBGDWDBS
'HVFULSWLRQ
3RLQWHUWRDVWUXFWXUHZLWKGDWDDERXWZKHQFDOOEDFNV
VKRXOGRFFXUDQGWKHGDWDWREHSDVVHG
8VHYSLBUHJLVWHUBV\VWIWRUHJLVWHUFDOOEDFNVIRUXVHUGHÀQHGV\VWHPWDVNVDQGIXQFWLRQV
8VHYSLBUHPRYHBFEWRUHPRYHFDOOEDFNVUHJLVWHUHGZLWKYSLBUHJLVWHUBFE
7KH 93, URXWLQH YSLBUHJLVWHUBFE LV XVHG IRU UHJLVWUDWLRQ RI VLPXODWLRQUHODWHG FDOOEDFNV WR D XVHUSURYLGHG
DSSOLFDWLRQIRUDYDULHW\RIUHDVRQVGXULQJDVLPXODWLRQ7KHUHDVRQVIRUZKLFKDFDOOEDFNFDQRFFXUDUHGLYLGHGLQWR
WKUHHFDWHJRULHV
³ 6LPXODWLRQHYHQW
³ 6LPXODWLRQWLPH
³ 6LPXODWLRQDFWLRQRUIHDWXUH
+RZFDOOEDFNVDUHUHJLVWHUHGIRUHDFKRIWKHVHFDWHJRULHVLVH[SODLQHGLQWKHIROORZLQJSDUDJUDSKV
7KH FEBGDWDBS DUJXPHQW VKDOO SRLQW WR D VBFEBGDWD VWUXFWXUH ZKLFK LV GHÀQHG LQ YSLBXVHUK DQG JLYHQ LQ
)LJXUH
W\SHGHIVWUXFWWBFEBGDWD^
LQWUHDVRQ
LQWFEBUWQ
YSL+DQGOHREM
SBYSLBWLPHWLPH
VWUXFWXUHGHILQHGLQYSLBXVHUK
SBYSLBYDOXHYDOXH
VWUXFWXUHGHILQHGLQYSLBXVHUK
LQWLQGH[ LQGH[RIPHPRU\ZRUGRUYDUVHOHFWZKLFKFKDQJHG
FKDUXVHUBGDWD
XVHUGDWDWREHSDVVHGWRFDOOEDFNIXQFWLRQ
`VBFEBGDWDSBFEBGDWD
)LJXUH³7KHVBFEBGDWDVWUXFWXUHGHÀQLWLRQ
)RU DOO FDOOEDFNV WKH UHDVRQ ÀHOG RI WKH VBFEBGDWD VWUXFWXUH VKDOO EH VHW WR D SUHGHÀQHG FRQVWDQW VXFK DV
FE9DOXH&KDQJHFE$W6WDUW2I6LP7LPHFE(QG2I&RPSLOHHWF7KHUHDVRQFRQVWDQWVKDOOGHWHUPLQHZKHQWKHXVHU
DSSOLFDWLRQVKDOOEHFDOOHGEDFN5HIHUWRWKHYSLBXVHUKÀOHOLVWLQJLQ$QQH[(IRUDOLVWRIDOOFDOOEDFNUHDVRQ
FRQVWDQWV
7KHFEBUWQÀHOGRIWKHVBFEBGDWDVWUXFWXUHVKDOOEHVHWWRWKHDSSOLFDWLRQQDPHZKLFKVKDOOEHLQYRNHGZKHQWKH
VLPXODWRUH[HFXWHVWKHFDOOEDFN7KHXVHRIWKHUHPDLQLQJÀHOGVDUHGHWDLOHGLQWKHIROORZLQJVXEFODXVHV
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
6LPXODWLRQHYHQWUHODWHGFDOOEDFNV
7KHYSLBUHJLVWHUBFEFDOOEDFNPHFKDQLVPFDQEHUHJLVWHUHGIRUFDOOEDFNVWRRFFXUIRUVLPXODWLRQHYHQWVVXFKDV
YDOXHFKDQJHVRQDQH[SUHVVLRQRUWHUPLQDORUWKHH[HFXWLRQRIDEHKDYLRUDOVWDWHPHQW:KHQWKHFEBGDWDBS!UHDVRQ
ÀHOGLVVHWWRRQHRIWKHIROORZLQJWKHFDOOEDFNVKDOORFFXUDVGHVFULEHGEHORZ
FE9DOXH&KDQJH
$IWHUYDOXHFKDQJHRQDQH[SUHVVLRQRUWHUPLQDO
FE6WPW
%HIRUHH[HFXWLRQRIDEHKDYLRUDOVWDWHPHQW
FE)RUFHFE5HOHDVH
$IWHUDIRUFHRUUHOHDVHKDVRFFXUUHGRQDVLPSOHH[SUHVVLRQ
7KHIROORZLQJÀHOGVVKDOOQHHGWREHLQLWLDOL]HGEHIRUHSDVVLQJWKHVBFEBGDWDVWUXFWXUHWRYSLBUHJLVWHUBFE
FEBGDWDBS!REM
7KLV ÀHOG VKDOO EH DVVLJQHG D KDQGOH WR DQ H[SUHVVLRQ WHUPLQDO RU VWDWHPHQW IRU
ZKLFK WKH FDOOEDFN VKDOO RFFXU )RU IRUFH DQG UHOHDVH FDOOEDFNV LI WKLV LV VHW WR
18//HYHU\IRUFHDQGUHOHDVHVKDOOJHQHUDWHDFDOOEDFN
FEBGDWDBS!WLPH!W\SH
7KLVÀHOGVKDOOEHVHWWRHLWKHUYSL6FDOHG5HDO7LPHRUYSL6LP7LPHGHSHQGLQJRQ
ZKDW WLPH LQIRUPDWLRQ WKH XVHU DSSOLFDWLRQ UHTXLUHV GXULQJ WKH FDOOEDFN ,I
VLPXODWLRQWLPHLQIRUPDWLRQLVQRWQHHGHGGXULQJWKHFDOOEDFNWKLVÀHOGFDQEHVHW
WRYSL6XSSUHVV7LPH
FEBGDWDBS!YDOXH!IRUPDW
7KLVÀHOGVKDOOEHVHWWRRQHRIWKHYDOXHIRUPDWVLQGLFDWHGLQ7DEOH,IYDOXH
LQIRUPDWLRQ LV QRW QHHGHG GXULQJ WKH FDOOEDFN WKLV ÀHOG FDQ EH VHW WR
YSL6XSSUHVV9DO )RU FE6WPW FDOOEDFNV YDOXH LQIRUPDWLRQ LV QRW SDVVHG WR WKH
FDOOEDFNURXWLQHVRWKLVÀHOGVKDOOEHLJQRUHG
7DEOH³9DOXHIRUPDWÀHOGRIFEBGDWDBS!YDOXH!IRUPDW
)RUPDW
5HJLVWHUVDFDOOEDFNWRUHWXUQ
YSL%LQ6WU9DO
6WULQJRIELQDU\FKDUV>[]@
YSL2FW6WU9DO
6WULQJRIRFWDOFKDUV>²[;]=@
YSL'HF6WU9DO
6WULQJRIGHFLPDOFKDUV>²@
YSL+H[6WU9DO
6WULQJRIKH[FKDUV>²I[;]=@
YSL6FDODU9DO
YSLYSLYSL;YSL=YSL+YSL/
YSL,QW9DO
YSL5HDO9DO
,QWHJHUYDOXHRIWKHKDQGOH
9DOXHRIWKHKDQGOHDVDGRXEOH
YSL6WULQJ9DO
$Q$6&,,VWULQJ
YSL7LPH9DO
,QWHJHUYDOXHRIWKHKDQGOHXVLQJWZRLQWHJHUV
YSL9HFWRU9DO
DYDOEYDOUHSUHVHQWDWLRQRIWKHYDOXHRIWKHREMHFW
YSL6WUHQJWK9DO
YSL2EMHFW9DO
9DOXHSOXVVWUHQJWKLQIRUPDWLRQRIDVFDODUREMHFWRQO\
5HWXUQDYDOXHLQWKHFORVHVWIRUPDWRIWKHREMHFW
:KHQDVLPXODWLRQHYHQWFDOOEDFNRFFXUVWKHXVHUDSSOLFDWLRQVKDOOEHSDVVHGDVLQJOHDUJXPHQWZKLFKLVDSRLQWHUWR
DQVBFEBGDWDVWUXFWXUH>WKLVLVQRWDSRLQWHUWRWKHVDPHVWUXFWXUHWKDWZDVSDVVHGWRYSLBUHJLVWHUBFE@7KHWLPH
DQGYDOXHLQIRUPDWLRQVKDOOEHVHWDVGLUHFWHGE\WKHWLPHW\SHDQGYDOXHIRUPDWÀHOGVLQWKHFDOOWRYSLBUHJLVWHUBFE
7KHXVHUBGDWDÀHOGVKDOOEHHTXLYDOHQWWRWKHXVHUBGDWDÀHOGSDVVHGWRYSLBUHJLVWHUBFE7KHXVHUDSSOLFDWLRQFDQ
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
XVHWKHLQIRUPDWLRQLQWKHSDVVHGVWUXFWXUHDQGLQIRUPDWLRQUHWULHYHGIURPRWKHU93,LQWHUIDFHURXWLQHVWRSHUIRUPWKH
GHVLUHGFDOOEDFNSURFHVVLQJ
)RU D FE9DOXH&KDQJH FDOOEDFN LI WKH REM LV D PHPRU\ ZRUG RU D YDULDEOH DUUD\ WKH YDOXH LQ WKH VBFEBGDWD
VWUXFWXUHVKDOOEHWKHYDOXHRIWKHPHPRU\ZRUGRUYDULDEOHVHOHFWWKDWFKDQJHGYDOXH7KHLQGH[ÀHOGVKDOOFRQWDLQWKH
LQGH[RIWKHPHPRU\ZRUGRUYDULDEOHVHOHFWWKDWFKDQJHGYDOXH
)RUFE)RUFHDQGFE5HOHDVHFDOOEDFNVREMVKDOOEHDKDQGOHWRWKHIRUFHGRUUHOHDVHGREMHFWZKLOHYDOXHVKDOOFRQWDLQ
WKHQHZYDOXHIRUDIRUFHRUWKHFXUUHQWYDOXHIRUDUHOHDVHLQWKHIRUPDWVSHFLÀHGE\WKHUHJLVWUDWLRQFDOO
7KH IROORZLQJ H[DPSOH VKRZV DQ LPSOHPHQWDWLRQ RI D VLPSOH PRQLWRU IXQFWLRQDOLW\ IRU VFDODU QHWV XVLQJ D
VLPXODWLRQHYHQWUHODWHGFDOOEDFN
VHWXSBPRQLWRUQHW
YSL+DQGOHQHW
^
VWDWLFVBYSLBWLPHWLPHBV ^YSL6FDOHG5HDO7LPH`
VWDWLFVBYSLBYDOXHYDOXHBV ^YSL%LQ6WU9DO`
VWDWLFVBFEBGDWDFEBGDWDBV
^FE9DOXH&KDQJHP\BPRQLWRU18//WLPHBVYDOXHBV`
FKDUQHWBQDPH YSLBJHWBVWUYSL)XOO1DPHQHW
FEBGDWDBVREM QHW
FEBGDWDBVXVHUBGDWD PDOORFVWUOHQQHWBQDPH
VWUFS\FEBGDWDBVXVHUBGDWDQHWBQDPH
YSLBUHJLVWHUBFEFEBGDWDBV
`
P\BPRQLWRUFEBGDWDBS
SBFEBGDWDFEBGDWDBS^
YSLBSULQWI´GGV V?Qµ
FEBGDWDBS!WLPH!KLJKFEBGDWDBS!WLPH!ORZ
FEBGDWDBS!XVHUBGDWD
FEBGDWDBS!YDOXH!YDOXHVWU
`
6LPXODWLRQWLPHUHODWHGFDOOEDFNV
7KHYSLBUHJLVWHUBFEFDQUHJLVWHUFDOOEDFNVWRRFFXUIRUVLPXODWLRQWLPHUHDVRQVLQFOXGHFDOOEDFNVDWWKHEHJLQQLQJ
RUHQGRIWKHH[HFXWLRQRIDSDUWLFXODUWLPHTXHXH7KHIROORZLQJWLPHUHODWHGFDOOEDFNUHDVRQVDUHGHÀQHG
FE$W6WDUW2I6LP7LPH
&DOOEDFN VKDOO RFFXU EHIRUH H[HFXWLRQ RI HYHQWV LQ D VSHFLÀHG WLPH TXHXH $
FDOOEDFNFDQEHVHWIRUDQ\WLPHHYHQLIQRHYHQWLVSUHVHQW
FE5HDG:ULWH6\QFK
&DOOEDFNVKDOORFFXUDIWHUH[HFXWLRQRIHYHQWVIRUDVSHFLÀHGWLPH
FE5HDG2QO\6\QFK
6DPH DV FE5HDG:ULWH6\QFK H[FHSW WKDW ZULWLQJ YDOXHV RU VFKHGXOLQJ HYHQWV
EHIRUHWKHQH[WVFKHGXOHGHYHQWLVQRWDOORZHG
FE1H[W6LP7LPH
&DOOEDFNVKDOORFFXUEHIRUHH[HFXWLRQRIHYHQWVLQWKHQH[WHYHQWTXHXH
FE$IWHU'HOD\
&DOOEDFNVKDOORFFXUDIWHUDVSHFLÀHGDPRXQWRIWLPHEHIRUHH[HFXWLRQRIHYHQWVLQ
D VSHFLÀHG WLPH TXHXH $ FDOOEDFN FDQ EH VHW IRU DQ\WLPH HYHQ LI QR HYHQW LV
SUHVHQW
7KHIROORZLQJÀHOGVVKDOOQHHGWREHVHWEHIRUHSDVVLQJWKHVBFEBGDWDVWUXFWXUHWRYSLBUHJLVWHUBFE
FEBGDWDBS!WLPH!W\SH
7KLVÀHOGVKDOOEHVHWWRHLWKHUYSL6FDOHG5HDO7LPHRUYSL6LP7LPHGHSHQGLQJRQ
ZKDWWLPHLQIRUPDWLRQWKHXVHUDSSOLFDWLRQUHTXLUHVGXULQJWKHFDOOEDFN
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
FEBGDWDBS!>WLPH!ORZWLPH!KLJKWLPH!UHDO@
7KHVHÀHOGVVKDOOFRQWDLQWKHUHTXHVWHGWLPHRIWKHFDOOEDFNRUWKHGHOD\EHIRUHWKH
FDOOEDFN
7KHYDOXHÀHOGVDUHLJQRUHGIRUDOOUHDVRQVZLWKVLPXODWLRQWLPHUHODWHGFDOOEDFNV
7KH REM ÀHOG LV LJQRUHG IRU DOO UHDVRQV H[FHSW ZKHQ WKH UHDVRQ ÀHOG HTXDOV FE$IWHU'HOD\ DQG FEBGDWDBS!WLPH
!W\SHHTXDOVYSL6FDOHG5HDO7LPHLQZKLFKFDVHWKHREMHFWGHWHUPLQHVWKHWLPHVFDOLQJ
)RUUHDVRQYSL1H[W6LP7LPHWKHWLPHVWUXFWXUHLVLJQRUHG
:KHQ D VLPXODWLRQWLPHUHODWHG FDOOEDFN RFFXUV WKH XVHU FDOOEDFN DSSOLFDWLRQ VKDOO EH SDVVHG D VLQJOH DUJXPHQW
ZKLFK LV D SRLQWHU WR DQ VBFEBGDWD VWUXFWXUH >WKLV LV QRW D SRLQWHU WR WKH VDPH VWUXFWXUH WKDW ZDV SDVVHG WR
YSLBUHJLVWHUBFE@ 7KH WLPH VWUXFWXUH VKDOO FRQWDLQ WKH FXUUHQW VLPXODWLRQ WLPH 7KH XVHUBGDWD ÀHOG VKDOO EH
HTXLYDOHQWWRWKHXVHUBGDWDÀHOGSDVVHGWRYSLBUHJLVWHUBFE
7KH FDOOEDFN DSSOLFDWLRQ FDQ XVH WKH LQIRUPDWLRQ LQ WKH SDVVHG VWUXFWXUH DQG LQIRUPDWLRQ UHWULHYHG IURP RWKHU
LQWHUIDFHURXWLQHVWRSHUIRUPWKHGHVLUHGFDOOEDFNSURFHVVLQJ
6LPXODWRUDFWLRQDQGIHDWXUHUHODWHGFDOOEDFNV
7KH YSLBUHJLVWHUBFE FDQ UHJLVWHU FDOOEDFNV WR RFFXU IRU VLPXODWRU DFWLRQ UHDVRQV RU VLPXODWRU IHDWXUH UHDVRQV
6LPXODWRUDFWLRQUHDVRQVDUHFDOOEDFNVVXFKDVWKHHQGRIFRPSLODWLRQRUHQGRIVLPXODWLRQ6LPXODWRUIHDWXUHUHDVRQV
DUH VRIWZDUHSURGXFWVSHFLÀF IHDWXUHV VXFK DV UHVWDUWLQJ IURP D VDYHG VLPXODWLRQ VWDWH RU HQWHULQJ DQ LQWHUDFWLYH
PRGH$FWLRQV DUH GLIIHUHQWLDWHG IURP IHDWXUHV LQ WKDW DFWLRQV VKDOO RFFXU LQ DOO93,FRPSOLDQW SURGXFWV ZKHUHDV
IHDWXUHVPLJKWQRWH[LVWLQDOO93,FRPSOLDQWSURGXFWV
7KHIROORZLQJDFWLRQUHODWHGFDOOEDFNVVKDOOEHGHÀQHG
FE(QG2I&RPSLOH
(QGRIVLPXODWLRQGDWDVWUXFWXUHFRPSLODWLRQRUEXLOG
FE6WDUW2I6LPXODWLRQ
6WDUWRIVLPXODWLRQEHJLQQLQJRIWLPHVLPXODWLRQF\FOH
FE(QG2I6LPXODWLRQ
(QGRIVLPXODWLRQHJÀQLVKV\VWHPWDVNH[HFXWHG
FE(UURU
6LPXODWLRQUXQWLPHHUURURFFXUUHG
FE7FKN9LRODWLRQ
7LPLQJFKHFNHUURURFFXUUHG
([DPSOHVRISRVVLEOHIHDWXUHUHODWHGFDOOEDFNVDUH
FE6WDUW2I6DYH
6LPXODWLRQVDYHVWDWHFRPPDQGLQYRNHG
FE(QG2I6DYH
6LPXODWLRQVDYHVWDWHFRPPDQGFRPSOHWHG
FE6WDUW2I5HVWDUW
6LPXODWLRQUHVWDUWIURPVDYHGVWDWHFRPPDQGLQYRNHG
FE(QG2I5HVWDUW
6LPXODWLRQUHVWDUWFRPPDQGFRPSOHWHG
FE(QWHU,QWHUDFWLYH
6LPXODWLRQHQWHULQJLQWHUDFWLYHGHEXJPRGHHJVWRSV\VWHPWDVNH[HFXWHG
FE([LW,QWHUDFWLYH
6LPXODWLRQH[LWLQJLQWHUDFWLYHPRGH
FE,QWHUDFWLYH6FRSH&KDQJH 6LPXODWLRQFRPPDQGWRFKDQJHLQWHUDFWLYHVFRSHH[HFXWHG
FE8QUHVROYHG6\VWI
8QNQRZQXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQHQFRXQWHUHG
7KHRQO\ÀHOGVLQWKHVBFEBGDWDVWUXFWXUHWKDWVKDOOQHHGWREHVHWXSIRUVLPXODWLRQDFWLRQIHDWXUHFDOOEDFNVDUHWKH
UHDVRQFEBUWQDQGXVHUBGDWDLIGHVLUHGÀHOGV
:KHQ D VLPXODWLRQ DFWLRQIHDWXUH FDOOEDFN RFFXUV WKH XVHU URXWLQH VKDOO EH SDVVHG D SRLQWHU WR DQ VBFEBGDWD
VWUXFWXUH7KH UHDVRQ ÀHOG VKDOO FRQWDLQ WKH UHDVRQ IRU WKH FDOOEDFN )RU FE7FKN9LRODWLRQ FDOOEDFNV WKH REM ÀHOG
VKDOOEHDKDQGOHWRWKHWLPLQJFKHFN)RUFE,QWHUDFWLYH6FRSH&KDQJHREMVKDOOEHDKDQGOHWRWKHQHZVFRSH)RU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
FE8QUHVROYHG6\VWIXVHUBGDWDVKDOOSRLQWWRWKHQDPHRIWKHXQUHVROYHGWDVNRUIXQFWLRQ2QDFE(UURUFDOOEDFNWKH
URXWLQHYSLBFKNBHUURUFDQEHFDOOHGWRUHWULHYHHUURULQIRUPDWLRQ
7KHIROORZLQJH[DPSOHVKRZVDFDOOEDFNDSSOLFDWLRQWKDWUHSRUWVFSXXVDJHDWWKHHQGRIDVLPXODWLRQ,IWKHXVHU
URXWLQHVHWXSBUHSRUWBFSXLVSODFHGLQWKHYORJBVWDUWXSBURXWLQHVOLVWLWVKDOOEHFDOOHGMXVWDIWHUWKH
VLPXODWRULVLQYRNHG
VWDWLFLQWLQLWLDOBFSXWLPHBJ
YRLGUHSRUWBFSX
^
LQWWRWDO JHWBFXUUHQWBFSXWLPHLQLWLDOBFSXWLPHBJ
YSLBSULQWI´6LPXODWLRQFRPSOHWH&38WLPHXVHGG?QµWRWDO
`
YRLGVHWXSBUHSRUWBFSX
^
VWDWLFVBFEBGDWDFEBGDWDBV ^FE(QG2I6LPXODWLRQUHSRUWBFSX`
LQLWLDOBFSXWLPHBJ JHWBFXUUHQWBFSXWLPH
YSLBUHJLVWHUBFEFEBGDWDBV
`
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBUHJLVWHUBV\VWI
YSLBUHJLVWHUBV\VWI
6\QRSVLV
5HJLVWHUXVHUGHÀQHGV\VWHPWDVNIXQFWLRQUHODWHGFDOOEDFNV
6\QWD[
YSLBUHJLVWHUBV\VWIV\VWIBGDWDBS
7\SH
5HWXUQV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRWKHFDOOEDFNREMHFW
7\SH
1DPH
'HVFULSWLRQ
$UJXPHQWV
SBYSLBV\VWIBGDWD
V\VWIBGDWDBS
5HODWHG
URXWLQHV
8VHYSLBUHJLVWHUBFEWRUHJLVWHUFDOOEDFNVIRUVLPXODWLRQUHODWHGHYHQWV
3RLQWHUWRDVWUXFWXUHZLWKGDWDDERXWZKHQFDOOEDFNV
VKRXOGRFFXUDQGWKHGDWDWREHSDVVHG
7KH93,URXWLQHYSLBUHJLVWHUBV\VWIVKDOOUHJLVWHUFDOOEDFNVIRUXVHUGHÀQHGV\VWHPWDVNVRUIXQFWLRQV&DOOEDFNV
FDQEHUHJLVWHUHGWRRFFXUZKHQDXVHUGHÀQHGV\VWHPWDVNRUIXQFWLRQLVHQFRXQWHUHGGXULQJFRPSLODWLRQRUH[HFXWLRQ
RI9HULORJ+'/VRXUFHFRGH
7KHV\VWIBGDWDBSDUJXPHQWVKDOOSRLQWWRDVBYSLBV\VWIBGDWDVWUXFWXUHZKLFKLVGHÀQHGLQYSLBXVHUKDQG
OLVWHGLQ)LJXUH
W\SHGHIVWUXFWWBYSLBV\VWIBGDWD^
LQWW\SH
YSL6\V>7DVN)XQFWLRQ@
LQWV\VIXQFW\SH YSL6\V)XQF>,QW5HDO7LPH6L]HG@
FKDUWIQDPH
ILUVWFKDUDFWHUPXVWEH´µ
LQWFDOOWI
LQWFRPSLOHWI
LQWVL]HWI IRUYSL6\V)XQF6L]HGV\VWHPIXQFWLRQVRQO\
FKDUXVHUBGDWD
`VBYSLBV\VWIBGDWDSBYSLBV\VWIBGDWD
)LJXUH³7KHVBYSLBV\VWIBGDWDVWUXFWXUHGHÀQLWLRQ
6\VWHPWDVNDQGIXQFWLRQFDOOEDFNV
8VHUGHÀQHG9HULORJV\VWHPWDVNVDQGIXQFWLRQVWKDWXVH93,URXWLQHVFDQEHUHJLVWHUHGZLWKYSLBUHJLVWHUBV\VWI
7KHIROORZLQJV\VWHPWDVNIXQFWLRQUHODWHGFDOOEDFNVDUHGHÀQHG
7KH W\SH ÀHOG RI WKH VBYSLBV\VWIBGDWD VWUXFWXUH VKDOO UHJLVWHU WKH XVHU DSSOLFDWLRQ WR EH D V\VWHP WDVN RU D
V\VWHPIXQFWLRQ7KHW\SHÀHOGYDOXHVKDOOEHDQLQWHJHUFRQVWDQWRIYSL6\V7DVNRUYSL6\V)XQFWLRQ
7KHV\VIXQFW\SHÀHOGRIWKHVBYSLBV\VWIBGDWDVWUXFWXUHVKDOOGHÀQHWKHW\SHRIYDOXHWKDWDV\VWHPIXQFWLRQ
VKDOO UHWXUQ 7KH V\VIXQFW\SH ÀHOG VKDOO EH DQ LQWHJHU FRQVWDQW RI YSL6\V)XQF,QW YSL6\V)XQF5HDO
YSL6\V)XQF7LPHRUYSL6\V)XQF6L]HG7KLVÀHOGVKDOORQO\EHXVHGZKHQWKHW\SHÀHOGLVVHWWRYSL6\V)XQFWLRQ
7KHFRPSLOHWIFDOOWIDQGVL]HWIÀHOGVRIWKHVBYSLBV\VWIBGDWDVWUXFWXUHVKDOOEHSRLQWHUVWRWKHXVHUSURYLGHG
DSSOLFDWLRQVWKDWDUHWREHLQYRNHGE\WKHV\VWHPWDVNIXQFWLRQFDOOEDFNPHFKDQLVP&DOOEDFNVWRWKHDSSOLFDWLRQV
SRLQWHGWRE\WKHFRPSLOHWIDQGVL]HWIÀHOGVVKDOORFFXUZKHQWKHVLPXODWLRQGDWDVWUXFWXUHLVFRPSLOHGRUEXLOWRUIRU
6HFWLRQ
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
WKHÀUVWLQYRFDWLRQLIWKHV\VWHPWDVNRUIXQFWLRQLVLQYRNHGIURPDQLQWHUDFWLYHPRGH&DOOEDFNVWRWKHDSSOLFDWLRQ
SRLQWHG WR E\ WKH FDOOWI URXWLQH VKDOO RFFXU HDFK WLPH WKH V\VWHP WDVN RU IXQFWLRQ LV LQYRNHG GXULQJ VLPXODWLRQ
H[HFXWLRQ
7KHXVHUBGDWDÀHOGRIWKHVBYSLBV\VWIBGDWDVWUXFWXUHVKDOOVSHFLI\DXVHUGHÀQHGYDOXHZKLFKVKDOOEHSDVVHGEDFNWR
WKHFRPSLOHWIVL]HWIDQGFDOOWIDSSOLFDWLRQVZKHQDFDOOEDFNRFFXUV
7KH IROORZLQJ H[DPSOH DSSOLFDWLRQ GHPRQVWUDWHV G\QDPLF OLQNLQJ RI D 93, V\VWHP WDVN 7KH H[DPSOH XVHV DQ
LPDJLQDU\ URXWLQH GOLQN ZKLFK DFFHSWV D ÀOH QDPH DQG D IXQFWLRQ QDPH DQG WKHQ OLQNV WKDW IXQFWLRQ
G\QDPLFDOO\7KLVURXWLQHGHULYHVWKHWDUJHWÀOHDQGIXQFWLRQQDPHVIURPWKHWDUJHWV\VWIQDPH
OLQNBV\VWIWDUJHW
FKDUWDUJHW
^
FKDUWDVNBQDPH>VWU6L]H@
FKDUILOHBQDPH>VWU6L]H@
FKDUFRPSLOHWIBQDPH>VWU6L]H@
FKDUFDOOWIBQDPH>VWU6L]H@
VWDWLFVBYSLBV\VWIBGDWDWDVNBGDWDBV ^YSL6\V7DVN`
VWDWLFSBYSLBV\VWIBGDWDWDVNBGDWDBS WDVNBGDWDBV
VSULQWIWDVNBQDPH´VµWDUJHW
VSULQWIILOHBQDPH´VRµWDUJHW
VSULQWIFRPSLOHWIBQDPH´VBFRPSLOHWIµWDUJHW
VSULQWIFDOOWIBQDPH´VBFDOOWIµWDUJHW
`
WDVNBGDWDBS!WIQDPH WDVNBQDPH
WDVNBGDWDBS!FRPSLOHWI LQWGOLQNILOHBQDPH
FRPSLOHWIBQDPH
WDVNBGDWDBS!FDOOWI LQWGOLQNILOHBQDPHFDOOWIBQDPH
YSLBUHJLVWHUBV\VWIWDVNBGDWDBS
,QLWLDOL]LQJ93,V\VWHPWDVNIXQFWLRQFDOOEDFNV
$PHDQVRILQLWLDOL]LQJV\VWHPWDVNIXQFWLRQFDOOEDFNVDQGSHUIRUPLQJDQ\RWKHUGHVLUHGWDVNMXVWDIWHUWKHVLPXODWRU
LV LQYRNHG VKDOO EH SURYLGHG E\ SODFLQJ URXWLQHV LQ D 18//WHUPLQDWHG VWDWLF DUUD\ YORJBVWDUWXSBURXWLQHV $
&IXQFWLRQXVLQJWKHDUUD\GHÀQLWLRQVKDOOEHSURYLGHGDVIROORZV
YRLGYORJBVWDUWXSBURXWLQHV>@
7KLV&IXQFWLRQVKDOOEHSURYLGHGZLWKD93,FRPSOLDQWSURGXFW(QWULHVLQWKHDUUD\VKDOOEHDGGHGE\WKHXVHU7KH
ORFDWLRQ RI YORJBVWDUWXSBURXWLQHV DQG WKH SURFHGXUH IRU OLQNLQJ YORJBVWDUWXSBURXWLQHV ZLWK D VRIWZDUH SURGXFW
VKDOOEHGHÀQHGE\WKHSURGXFWYHQGRU1RWHWKDWFDOOEDFNVFDQDOVREHUHJLVWHUHGRUUHPRYHGDWDQ\WLPHGXULQJDQ
DSSOLFDWLRQURXWLQHQRWMXVWDWVWDUWXSWLPH
$ SULPDU\ XVH RI WKH YORJBVWDUWXSBURXWLQHV VKDOO EH IRU UHJLVWHULQJ V\VWHP WDVNV DQG IXQFWLRQV 8VHU WDVNV DQG
IXQFWLRQVWKDWDSSHDULQDFRPSLOHGGHVFULSWLRQVKDOOJHQHUDOO\EHUHJLVWHUHGE\DURXWLQHLQWKLVDUUD\
7KH IROORZLQJ H[DPSOH XVHV YORJBVWDUWXSBURXWLQHV WR UHJLVWHU V\VWHP WDVNV DQG IXQFWLRQV DQG WR UXQ D XVHU
LQLWLDOL]DWLRQURXWLQH
,QDYHQGRUSURGXFWILOHZKLFKFRQWDLQVYORJBVWDUWXSBURXWLQHV
H[WHUQYRLGUHJLVWHUBP\BV\VWIV
H[WHUQYRLGP\BLQLW
YRLGYORJBVWDUWXSBURXWLQHV>@ ^
VHWXSBUHSRUWBFSX
XVHUURXWLQHH[DPSOHLQ
6HFWLRQ
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
`
UHJLVWHUBP\BV\VWIV
,(((
6WG
XVHUURXWLQHOLVWHGEHORZ
PXVWEHODVWHQWU\LQOLVW
,QDXVHUSURYLGHGILOH
YRLGUHJLVWHUBP\BV\VWIV
^
VWDWLFVBYSLBV\VWIBGDWDV\VWIBGDWDBOLVW>@ ^
^YSL6\V7DVN´P\BWDVNµP\BWDVNBFDOOWIP\BWDVNBFRPSLOHWI`
^YSL6\V)XQFWLRQYSL)XQF,QW´P\BIXQFµP\BIXQFBFDOOWI
P\BIXQFBFRPSLOHWI`
^YSL6\V)XQFWLRQYSL6\V)XQF6L]HG´P\BIXQFµ
P\BVL]HGBFDOOWIP\BVL]HGBFRPSLOHWIP\BVL]H`
`
SBYSLBV\VWIBGDWDV\VWIBGDWDBS V\VWIBGDWDBOLVW>@
`
6HFWLRQ
ZKLOHV\VWIBGDWDBS
YSLBUHJLVWHUBV\VWIV\VWIBGDWDBS
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
YSLBUHPRYHBFE
YSLBUHPRYHBFE
6\QRSVLV
5HPRYHDVLPXODWLRQFDOOEDFNUHJLVWHUHGZLWKYSLBUHJLVWHUBFE
6\QWD[
YSLBUHPRYHBFEFEBREM
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
ERRO
'HVFULSWLRQ
WUXHLIVXFFHVVIXOIDOVHRQDIDLOXUH
7\SH
1DPH
YSL+DQGOH
FEBREM
'HVFULSWLRQ
+DQGOHWRWKHFDOOEDFNREMHFW
8VHYSLBUHJLVWHUBFEWRUHJLVWHUFDOOEDFNVIRUVLPXODWLRQUHODWHGHYHQWV
7KH93,URXWLQHYSLBUHPRYHBFEVKDOOUHPRYHFDOOEDFNVWKDWZHUHUHJLVWHUHGZLWKYSLBUHJLVWHUBFE7KHDUJXPHQW
WRWKLVURXWLQHVKDOOEHDKDQGOHWRWKHFDOOEDFNREMHFW7KHURXWLQHVKDOOUHWXUQDWUXHLIVXFFHVVIXODQGDIDOVH
RQDIDLOXUH
6HFWLRQ
,(((
6WG
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
YSLBVFDQ
YSLBVFDQ
6\QRSVLV
6FDQWKH9HULORJ+'/KLHUDUFK\IRUREMHFWVZLWKDRQHWRPDQ\UHODWLRQVKLS
6\QWD[
YSLBVFDQLWU
7\SH
5HWXUQV
$UJXPHQWV
5HODWHG
URXWLQHV
YSL+DQGOH
'HVFULSWLRQ
+DQGOHWRDQREMHFW
7\SH
1DPH
YSL+DQGOH
LWU
'HVFULSWLRQ
+DQGOHWRDQLWHUDWRUREMHFWUHWXUQHGIURPYSLBLWHUDWH
8VHYSLBLWHUDWHWRREWDLQDQLWHUDWRUKDQGOH
8VHYSLBKDQGOHWRREWDLQKDQGOHVWRDQREMHFWZLWKDRQHWRRQHUHODWLRQVKLS
8VHYSLBKDQGOHBPXOWLWRREWDLQDKDQGOHWRDQREMHFWZLWKDPDQ\WRRQHUHODWLRQVKLS
7KH93,URXWLQHYSLBVFDQVKDOOWUDYHUVHWKHLQVWDQWLDWHG9HULORJ+'/KLHUDUFK\DQGUHWXUQKDQGOHVWRREMHFWVDV
GLUHFWHGE\WKHLWHUDWRULWU7KHLWHUDWRUKDQGOHVKDOOEHREWDLQHGE\FDOOLQJYSLBLWHUDWHIRUDVSHFLÀFREMHFWW\SH
7KH IROORZLQJ H[DPSOH DSSOLFDWLRQ XVHV YSLBLWHUDWH DQG YSLBVFDQ WR GLVSOD\ HDFK QHW LQFOXGLQJ WKH VL]H IRU
YHFWRUVGHFODUHGLQWKHPRGXOH7KHH[DPSOHDVVXPHVLWVKDOOEHSDVVHGDYDOLGPRGXOHKDQGOH
YRLGGLVSOD\BQHWVPRG
YSL+DQGOHPRG
^
YSL+DQGOHQHW
YSL+DQGOHLWU
YSLBSULQWI´1HWVGHFODUHGLQPRGXOHV?Qµ
YSLBJHWBVWUYSL)XOO1DPHPRG
`
6HFWLRQ
LWU YSLBLWHUDWHYSL1HWPRG
ZKLOHQHW YSLBVFDQLWU
^
YSLBSULQWI´?WVµYSLBJHWBVWUYSL1DPHQHW
LIYSLBJHWYSL9HFWRUQHW
^
YSLBSULQWI´RIVL]HG?QµYSLBJHWYSL6L]HQHW
`
HOVHYSLBSULQWI´?Qµ
`
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
$QQH[$
QRUPDWLYH
)RUPDOV\QWD[GHÀQLWLRQ
7KHIRUPDOV\QWD[RI9HULORJ+'/LVGHVFULEHGXVLQJ%DFNXV1DXU)RUP%1)
$6RXUFHWH[W
VRXUFHBWH[W ^GHVFULSWLRQ`
GHVFULSWLRQ PRGXOHBGHFODUDWLRQ
_XGSBGHFODUDWLRQ
PRGXOHBGHFODUDWLRQ PRGXOHBNH\ZRUGPRGXOHBLGHQWLILHU>OLVWBRIBSRUWV@^PRGXOHBLWHP`HQGPRGXOH
PRGXOHBNH\ZRUG PRGXOH_PDFURPRGXOH
OLVWBRIBSRUWV SRUW^SRUW`
SRUW
>SRUWBH[SUHVVLRQ@
_SRUWBLGHQWLILHU>SRUWBH[SUHVVLRQ@
SRUWBH[SUHVVLRQ SRUWBUHIHUHQFH
_^SRUWBUHIHUHQFH^SRUWBUHIHUHQFH``
SRUWBUHIHUHQFH SRUWBLGHQWLILHU
_SRUWBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
_SRUWBLGHQWLILHU>PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
PRGXOHBLWHP PRGXOHBLWHPBGHFODUDWLRQ
_SDUDPHWHUBRYHUULGH
_FRQWLQXRXVBDVVLJQ
_JDWHBLQVWDQWLDWLRQ
_XGSBLQVWDQWLDWLRQ
_PRGXOHBLQVWDQWLDWLRQ
_VSHFLI\BEORFN
_LQLWLDOBFRQVWUXFW
_DOZD\VBFRQVWUXFW
PRGXOHBLWHPBGHFODUDWLRQ
SDUDPHWHUBGHFODUDWLRQ
_LQSXWBGHFODUDWLRQ
_RXWSXWBGHFODUDWLRQ
_LQRXWBGHFODUDWLRQ
_QHWBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
_LQWHJHUBGHFODUDWLRQ
_UHDOBGHFODUDWLRQ
$QQH[$
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
_WLPHBGHFODUDWLRQ
_UHDOWLPHBGHFODUDWLRQ
_HYHQWBGHFODUDWLRQ
_WDVNBGHFODUDWLRQ
_IXQFWLRQBGHFODUDWLRQ
SDUDPHWHUBRYHUULGH GHISDUDPOLVWBRIBSDUDPBDVVLJQPHQWV
$'HFODUDWLRQV
SDUDPHWHUBGHFODUDWLRQ SDUDPHWHUOLVWBRIBSDUDPBDVVLJQPHQWV
OLVWBRIBSDUDPBDVVLJQPHQWV SDUDPBDVVLJQPHQW^SDUDPBDVVLJQPHQW`
SDUDPBDVVLJQPHQW SDUDPHWHUBLGHQWLILHU FRQVWDQWBH[SUHVVLRQ
LQSXWBGHFODUDWLRQ LQSXW>UDQJH@OLVWBRIBSRUWBLGHQWLILHUV
RXWSXWBGHFODUDWLRQ RXWSXW>UDQJH@OLVWBRIBSRUWBLGHQWLILHUV
LQRXWBGHFODUDWLRQ LQRXW>UDQJH@OLVWBRIBSRUWBLGHQWLILHUV
OLVWBRIBSRUWBLGHQWLILHUV SRUWBLGHQWLILHU^SRUWBLGHQWLILHU`
UHJBGHFODUDWLRQ UHJ>UDQJH@OLVWBRIBUHJLVWHUBLGHQWLILHUV
WLPHBGHFODUDWLRQ WLPHOLVWBRIBUHJLVWHUBLGHQWLILHUV
LQWHJHUBGHFODUDWLRQ LQWHJHUOLVWBRIBUHJLVWHUBLGHQWLILHUV
UHDOBGHFODUDWLRQ UHDOOLVWBRIBUHDOBLGHQWLILHUV
UHDOWLPHBGHFODUDWLRQ UHDOWLPHOLVWBRIBUHDOBLGHQWLILHUV
HYHQWBGHFODUDWLRQ HYHQWHYHQWBLGHQWLILHU^HYHQWBLGHQWLILHU`
OLVWBRIBUHDOBLGHQWLILHUV UHDOBLGHQWLILHU^UHDOBLGHQWLILHU`
OLVWBRIBUHJLVWHUBLGHQWLILHUV UHJLVWHUBQDPH^UHJLVWHUBQDPH`
UHJLVWHUBQDPH UHJLVWHUBLGHQWLILHU
_PHPRU\BLGHQWLILHU>XSSHUBOLPLWBFRQVWDQWBH[SUHVVLRQORZHUBOLPLWBFRQVWDQWBH[SUHVVLRQ@
UDQJH >PVEBFRQVWDQWBH[SUHVVLRQOVEBFRQVWDQWBH[SUHVVLRQ@
QHWBGHFODUDWLRQ QHWBW\SH>YHFWRUHG_VFDODUHG@>UDQJH@>GHOD\@OLVWBRIBQHWBLGHQWLILHUV
_WULUHJ>YHFWRUHG_VFDODUHG@>FKDUJHBVWUHQJWK@>UDQJH@>GHOD\@OLVWBRIBQHWBLGHQWLILHUV
_QHWBW\SH>YHFWRUHG_VFDODUHG@>GULYHBVWUHQJWK@>UDQJH@>GHOD\@OLVWBRIBQHWBGHFOBDVVLJQPHQWV
QHWBW\SH ZLUH_WUL_WUL_VXSSO\_ZDQG_WULDQG_WUL_VXSSO\_ZRU_WULRU
OLVWBRIBQHWBLGHQWLILHUV QHWBLGHQWLILHU^QHWBLGHQWLILHU`
GULYHBVWUHQJWK VWUHQJWKVWUHQJWK
_VWUHQJWKVWUHQJWK
_VWUHQJWKKLJK]
_VWUHQJWKKLJK]
_KLJK]VWUHQJWK
_KLJK]VWUHQJWK
VWUHQJWK VXSSO\_VWURQJ_SXOO_ZHDN
VWUHQJWK VXSSO\_VWURQJ_SXOO_ZHDN
FKDUJHBVWUHQJWK VPDOO_PHGLXP_ODUJH
GHOD\ GHOD\BYDOXH_GHOD\BYDOXH>GHOD\BYDOXH>GHOD\BYDOXH@@
GHOD\ GHOD\BYDOXH_GHOD\BYDOXH>GHOD\BYDOXH@
GHOD\BYDOXH XQVLJQHGBQXPEHU_SDUDPHWHUBLGHQWLILHU_FRQVWDQWBPLQW\SPD[BH[SUHVVLRQ
OLVWBRIBQHWBGHFOBDVVLJQPHQWV QHWBGHFOBDVVLJQPHQW^QHWBGHFOBDVVLJQPHQW`
QHWBGHFOBDVVLJQPHQW QHWBLGHQWLILHU H[SUHVVLRQ
IXQFWLRQBGHFODUDWLRQ IXQFWLRQ>UDQJHBRUBW\SH@IXQFWLRQBLGHQWLILHU
$QQH[$
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
IXQFWLRQBLWHPBGHFODUDWLRQ^IXQFWLRQBLWHPBGHFODUDWLRQ`
VWDWHPHQW
HQGIXQFWLRQ
UDQJHBRUBW\SH UDQJH_LQWHJHU_UHDO_UHDOWLPH_WLPH
IXQFWLRQBLWHPBGHFODUDWLRQ EORFNBLWHPBGHFODUDWLRQ
_LQSXWBGHFODUDWLRQ
WDVNBGHFODUDWLRQ WDVNWDVNBLGHQWLILHU
^WDVNBLWHPBGHFODUDWLRQ`
VWDWHPHQWBRUBQXOO
HQGWDVN
WDVNBDUJXPHQWBGHFODUDWLRQ EORFNBLWHPBGHFODUDWLRQ
_RXWSXWBGHFODUDWLRQ
_LQRXWBGHFODUDWLRQ
EORFNBLWHPBGHFODUDWLRQ SDUDPHWHUBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
_LQWHJHUBGHFODUDWLRQ
_UHDOBGHFODUDWLRQ
_WLPHBGHFODUDWLRQ
_UHDOWLPHBGHFODUDWLRQ
_HYHQWBGHFODUDWLRQ
$3ULPLWLYHLQVWDQFHV
JDWHBLQVWDQWLDWLRQ QBLQSXWBJDWHW\SH>GULYHBVWUHQJWK@>GHOD\@QBLQSXWBJDWHBLQVWDQFH^QBLQSXWBJDWHBLQVWDQFH`
_QBRXWSXWBJDWHW\SH>GULYHBVWUHQJWK@>GHOD\@QBRXWSXWBJDWHBLQVWDQFH^QBRXWSXWBJDWHBLQVWDQFH`
_HQDEOHBJDWHW\SH>GULYHBVWUHQJWK@>GHOD\@HQDEOHBJDWHBLQVWDQFH^HQDEOHBJDWHBLQVWDQFH`
_PRVBVZLWFKW\SH>GHOD\@PRVBVZLWFKBLQVWDQFH^PRVBVZLWFKBLQVWDQFH`
_SDVVBVZLWFKW\SHSDVVBVZLWFKBLQVWDQFH^SDVVBVZLWFKBLQVWDQFH`
_SDVVBHQBVZLWFKW\SH>GHOD\@SDVVBHQBVZLWFKBLQVWDQFH^SDVVBHQBVZLWFKBLQVWDQFH`
_FPRVBVZLWFKW\SH>GHOD\@FPRVBVZLWFKBLQVWDQFH^FPRVBVZLWFKBLQVWDQFH`
_SXOOXS>SXOOXSBVWUHQJWK@SXOOBJDWHBLQVWDQFH^SXOOBJDWHBLQVWDQFH`
_SXOOGRZQ>SXOOGRZQBVWUHQJWK@SXOOBJDWHBLQVWDQFH^SXOOBJDWHBLQVWDQFH`
QBLQSXWBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDO^LQSXWBWHUPLQDO`
QBRXWSXWBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDO^RXWSXWBWHUPLQDO`LQSXWBWHUPLQDO
HQDEOHBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDOHQDEOHBWHUPLQDO
PRVBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDOHQDEOHBWHUPLQDO
SDVVBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@LQRXWBWHUPLQDOLQRXWBWHUPLQDO
SDVVBHQDEOHBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@LQRXWBWHUPLQDOLQRXWBWHUPLQDOHQDEOHBWHUPLQDO
FPRVBVZLWFKBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDOLQSXWBWHUPLQDO
QFRQWUROBWHUPLQDOSFRQWUROBWHUPLQDO
SXOOBJDWHBLQVWDQFH >QDPHBRIBJDWHBLQVWDQFH@RXWSXWBWHUPLQDO
QDPHBRIBJDWHBLQVWDQFH JDWHBLQVWDQFHBLGHQWLILHU>UDQJH@
SXOOXSBVWUHQJWK
VWUHQJWKVWUHQJWK
_VWUHQJWKVWUHQJWK
_VWUHQJWK
SXOOGRZQBVWUHQJWK
VWUHQJWKVWUHQJWK
_VWUHQJWKVWUHQJWK
$QQH[$
7+(9(5,/2*Š+$5':$5('(6&5,37,21/$1*8$*(
,(((
6WG
_VWUHQJWK
LQSXWBWHUPLQDO VFDODUBH[SUHVVLRQ
HQDEOHBWHUPLQDO VFDODUBH[SUHVVLRQ
QFRQWUROBWHUPLQDO VFDODUBH[SUHVVLRQ
SFRQWUROBWHUPLQDO VFDODUBH[SUHVVLRQ
RXWSXWBWHUPLQDO WHUPLQDOBLGHQWLILHU_WHUPLQDOBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
LQRXWBWHUPLQDO WHUPLQDOBLGHQWLILHU_WHUPLQDOBLGHQWLILHU>FRQVWDQWBH[SUHVVLRQ@
QBLQSXWBJDWHW\SH DQG_QDQG_RU_QRU_[RU_[QRU
QBRXWSXWBJDWHW\SH EXI_QRW
HQDEOHBJDWHW\SH EXILI_EXILI_QRWLI_QRWLI
PRVBVZLWFKW\SH QPRV_SPRV_UQPRV_USPRV
SDVVBVZLWFKW\SH WUDQ_UWUDQ
SDVVBHQBVZLWFKW\SH WUDQLI_WUDQLI_UWUDQLI_UWUDQLI
FPRVBVZLWFKW\SH FPRV_UFPRV
$0RGXOHLQVWDQWLDWLRQ
PRGXOHBLQVWDQWLDWLRQ PRGXOHBLGHQWLILHU>SDUDPHWHUBYDOXHBDVVLJQPHQW@PRGXOHBLQVWDQFH^PRGXOHBLQVWDQFH`
SDUDPHWHUBYDOXHBDVVLJQPHQW H[SUHVVLRQ^H[SUHVVLRQ`
PRGXOHBLQVWDQFH QDPHBRIBLQVWDQFH>OLVWBRIBPRGXOHBFRQQHFWLRQV@
QDPHBRIBLQVWDQFH PRGXOHBLQVWDQFHBLGHQWLILHU>UDQJH@
OLVWBRIBPRGXOHBFRQQHFWLRQV RUGHUHGBSRUWBFRQQHFWLRQ^RUGHUHGBSRUWBFRQQHFWLRQ`
_QDPHGBSRUWBFRQQHFWLRQ^QDPHGBSRUWBFRQQHFWLRQ`
RUGHUHGBSRUWBFRQQHFWLRQ >H[SUHVVLRQ@
QDPHGBSRUWBFRQQHFWLRQ SRUWBLGHQWLILHU>H[SUHVVLRQ@
$8'3GHFODUDWLRQDQGLQVWDQWLDWLRQ
XGSBGHFODUDWLRQ SULPLWLYHXGSBLGHQWLILHUXGSBSRUWBOLVW
XGSBSRUWBGHFODUDWLRQ^XGSBSRUWBGHFODUDWLRQ`
XGSBERG\
HQGSULPLWLYH
XGSBSRUWBOLVW RXWSXWBSRUWBLGHQWLILHULQSXWBSRUWBLGHQWLILHU^LQSXWBSRUWBLGHQWLILHU`
XGSBSRUWBGHFODUDWLRQ RXWSXWBGHFODUDWLRQ
_LQSXWBGHFODUDWLRQ
_UHJBGHFODUDWLRQ
XGSBERG\ FRPELQDWLRQDOBERG\_VHTXHQWLDOBERG\
FRPELQDWLRQDOBERG\ WDEOHFRPELQDWLRQDOBHQWU\^FRPELQDWLRQDOBHQWU\`HQGWDEOH
FRPELQDWLRQDOBHQWU\ OHYHOBLQSXWBOLVWRXWSXWBV\PERO
VHTXHQWLDOBERG\ >XGSBLQLWLDOBVWDWHPHQW@WDEOHVHTXHQWLDOBHQWU\^VHTXHQWLDOBHQWU\`HQGWDEOH
XGSBLQLWLDOBVWDWHPHQW LQLWLDOXGSBRXWSXWBSRUWBLGHQWLILHU LQLWBYDO
LQLWBYDO ·E_·E_·E[_·E;_·%_·%_·%[_·%;__
VHTXHQWLDOBHQWU\ VHTBLQSXWBOLVWFXUUHQWBVWDWHQH[WBVWDWH
VHTBLQSXWBOLVW OHYHOBLQSXWBOLVW_HGJHBLQSXWBOLVW
OHYHOBLQSXWBOLVW OHYHOBV\PERO^OHYHOBV\PERO`
HGJHBLQSXWBOLVW ^OHYHOBV\PERO`HGJHBLQGLFDWRU^OHYHOBV\PERO`
$QQH[$
,(((
6WG
,(((67$1'$5'+$5':$5('(6&5,37,21/$1*8$*(%$6('21
HGJHBLQGLFDWRU OHYHOBV\PEROOHYHOBV\PERO_HGJHBV\PERO
FXUUHQWBVWDWH OHYHOBV\PERO
QH[WBVWDWH RXWSXWBV\PERO_
RXWSXWBV\PERO __[_;
OHYHOBV\PERO __[_;_"_E_%
HGJHBV\PERO U_5_I_)_S_3_Q_1_
XGSBLQVWDQWLDWLRQ XGSBLGHQWLILHU>GULYHBVWUHQJWK@>GHOD\@XGSBLQVWDQFH^XGSBLQVWDQFH`
XGSBLQVWDQFH >QDPHBRIBXGSBLQVWDQFH@RXWSXWBSRUWBFRQQHFWLRQLQSXWBSRUWBFRQQHFWLRQ
^LQSXWBSRUWBFRQQHFWLRQ`
QDPHBRIBXGSBLQVWDQFH XGSBLQVWDQFHBLGHQWLILHU>UDQJH@
$%HKDYLRUDOVWDWHPHQWV
FRQWLQXRXVBDVVLJQ DVVLJQ>GULYHBVWUHQJWK@>GHOD\@OLVWBRIBQHWBDVVLJQPHQWV
OLVWBRIBQHWBDVVLJQPHQWV QHWBDVVLJQPHQW^QHWBDVVLJQPHQW`
QHWBDVVLJQPHQW QHWBOYDOXH H[SUHVVLRQ
LQLWLDOBFRQVWUXFW LQLWLDOVWDWHPHQW
DOZD\VBFRQVWUXFW DOZD\VVWDWHPHQW
VWDWHPHQW
EORFNLQJBDVVLJQPHQW
_QRQBEORFNLQJDVVLJQPHQW
_SURFHGXUDOBFRQWLQXRXVBDVVLJQPHQWV
_SURFHGXUDOBWLPLQJBFRQWUROBVWDWHPHQW
_FRQGLWLRQDOBVWDWHPHQW
_FDVHBVWDWHPHQW
_ORRSBVWDWHPHQW
_ZDLWBVWDWHPHQW
_GLVDEOHBVWDWHPHQW
_HYHQWBWULJJHU
_VHTBEORFN
_SDUBEORFN
_WDVNBHQDEOH
_V\VWHPBWDVNBHQDEOH
VWDWHPHQWBRUBQXOO VWDWHPHQW_
EORFNLQJDVVLJQPHQW UHJBOYDOXH >GHOD\BRUBHYHQWBFRQWURO@H[SUHVVLRQ
QRQEORFNLQJDVVLJQPHQW UHJBOYDOXH >GHOD\BRUBHYHQWBFRQWURO@H[SUHVVLRQ
SURFHGXUDOB