9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 35
)2&86('7$6.60(17$/$&7,216$1'6(&21'/$1*8$*(
/($51,1*&2*1,7,9($1'&211(&7,21,67$&&28176
2)7$6.())(&7,9(1(66
0DFKWHOG/,0RRQHQ
5LFNGH*UDDII
*HUDUG-:HVWKRII
,9/26,QVWLWXWHRI(GXFDWLRQ
8WUHFKW8QLYHUVLW\
$%675$&7
7KLVSDSHUSUHVHQWVDWKHRUHWLFDOIUDPHZRUNWRHVWLPDWHWKHHIIHFWLYHQHVVRIVHFRQGODQJXDJH
WDVNVLQZKLFKWKHIRFXVLVRQWKHDFTXLVLWLRQRIQHZOLQJXLVWLFLWHPVVXFKDVYRFDEXODU\RU
JUDPPDUWKHVRFDOOHGIRFXVHGWDVNV5(OOLV:KDWDFFRXQWVIRUWKHOHDUQLQJLPSDFW
RIIRFXVHGWDVNV":HVKDOODUJXHWKDWWKHWDVNEDVHGDSSURDFKHJ6NHKDQ5RELQVRQ
GRHVQRWSURYLGHDQLQGHSWKDFFRXQWRIKRZFRJQLWLYHSURFHVVHVHOLFLWHGE\DWDVN
IRVWHUWKHDFTXLVLWLRQRIQHZOLQJXLVWLFHOHPHQWV:HVKDOOWKHQUHYLHZWKHW\SRORJLHVRIFRJQLWLYH
SURFHVVHVGHULYHGIURPUHVHDUFKRQOHDUQLQJVWUDWHJLHV&KDPRW2¶0DOOH\IURPWKH
LQYROYHPHQWORDGK\SRWKHVLV/DXIHU+XOVWLMQIURPWKHGHSWKRISURFHVVLQJK\SRWKHVLV
&UDLN/RFNKDUWDQGIURPFRQQHFWLRQLVPHJ%URHGHU3OXQNHWW1(OOLV
7KHFRPELQHGLQVLJKWVRIWKHVHW\SRORJLHVIRUPWKHEDVLVRIWKHPXOWLIHDWXUHK\SRWKHVLVZKLFK
SUHGLFWVWKDWUHWHQWLRQDQGHDVHRIDFWLYDWLRQRIQHZOLQJXLVWLFLWHPVDUHLPSURYHGE\PHQWDO
DFWLRQV ZKLFK LQYROYH D ZLGH YDULHW\ RI GLIIHUHQW IHDWXUHV VLPXOWDQHRXVO\ DQG IUHTXHQWO\$
QXPEHURILPSOLFDWLRQVIRUIXWXUHUHVHDUFKVKDOOEHGLVFXVVHG
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 36
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
,QWURGXFWLRQ
7KHJRDORIVHFRQGODQJXDJHHGXFDWLRQLVWKDWOHDUQHUVEHFRPHÀXHQWVHFRQGODQJXDJHXVHUV
7RDFKLHYHWKLVLWLVLPSRUWDQWDPRQJRWKHUWKLQJVWRVWRUHQHZOLQJXLVWLFLQIRUPDWLRQLQVXFK
DZD\WKDWLWFDQEHDFFHVVHGTXLFNO\ZKHQQHHGHG+RZFDQWDVNVVXSSRUWWKHVWRUDJHRI
DQGDFFHVVWRODQJXDJH",QWKLVSDSHUZHWDNHDFRJQLWLYHSHUVSHFWLYHRQVHFRQGODQJXDJH
OHDUQLQJZKLFKHPSKDVL]HVWKHUROHRIPHQWDODFWLRQVLQWKHDFTXLVLWLRQRIQHZOLQJXLVWLFLWHPV
%DGGHOH\1(OOLV7DVNVFDQEHXVHGWRHOLFLWWKHVHPHQWDODFWLRQV'ULHVVHQ
+DHQHQ:HVWKRII$FHQWUDOTXHVWLRQLQWKLVDUWLFOHLVKRZFDQZHXVHLQIRUPDWLRQ
DERXWWKHOHDUQLQJLPSDFWRIPHQWDODFWLRQVWRGHWHUPLQHWKHOHDUQLQJLPSDFWRIWDVNV",QRUGHU
WRDGGUHVVWKLVTXHVWLRQZHVKDOO¿UVWFRQVLGHUFRJQLWLYHDFFRXQWVRIWKHPHFKDQLVPVE\ZKLFK
PHQWDO DFWLYLW\ LQÀXHQFHV VHFRQG ODQJXDJH DFTXLVLWLRQ 7KHQ ZH VKDOO UHYLHZ D QXPEHU RI
W\SRORJLHV RI WDVNV DQG PHQWDO DFWLRQV IRFXVLQJ RQ WKHLU XQGHUO\LQJ WKHRUHWLFDO DFFRXQWV RI
WKH OHDUQLQJ LPSDFW RI GLIIHUHQW W\SHV RI SURFHVVLQJ :H VKDOO VWDUW ZLWK WKH IUDPHZRUNV IRU
WDVNDQDO\VLVGHVLJQHGE\SURSRQHQWVRIWKHWDVNEDVHGDSSURDFKWRODQJXDJHOHDUQLQJHJ
6NHKDQ5RELQVRQ$OWKRXJKYDOXDEOHZHDUJXHWKDWWKHVHIUDPHZRUNVGRQRW
RIIHULQGHSWKWKHRUHWLFDODFFRXQWVUHJDUGLQJWKHGLIIHUHQWLDOHIIHFWVRIGLIIHUHQWW\SHVRIPHQWDO
DFWLRQV HOLFLWHG E\ IRFXVHG WDVNV LH WDVNV LQ ZKLFK WKH IRFXV LV RQ WKH DFTXLVLWLRQ RI QHZ
OLQJXLVWLF LWHPV VXFK DV YRFDEXODU\ RU JUDPPDU 5 (OOLV :H VKDOO WKHQ UHYLHZ WKH
W\SRORJLHVGHULYHGIURPUHVHDUFKRQOHDUQLQJVWUDWHJLHV&KDPRW2¶0DOOH\IURPWKH
LQYROYHPHQWORDGK\SRWKHVLV/DXIHU+XOVWLMQIURPWKHGHSWKRISURFHVVLQJK\SRWKHVLV
&UDLN /RFNKDUW DQG IURP FRQQHFWLRQLVP HJ %URHGHU 3OXQNHWW 1 (OOLV
7KHFRPELQHGLQVLJKWVRIWKHVHW\SRORJLHVIRUPWKHEDVLVRIWKHPXOWLIHDWXUHK\SRWKHVLV
:HVWKRIIZKLFKRIIHUVDIUDPHZRUNIRUWKHDQDO\VLVRIIRFXVHGWDVNVLQWHUPVRIWKH
GLIIHUHQWLDOHIIHFWVRIGLIIHUHQWW\SHVRIPHQWDODFWLRQVHOLFLWHGE\WDVNV
$FRJQLWLYHSHUVSHFWLYHRQ6/$WKHFRQFHSWRIPHQWDODFWLRQV
,QWKLVSDSHUZHWDNHDFRJQLWLYHSHUVSHFWLYHRQVHFRQGODQJXDJHDFTXLVLWLRQ0RUHVSHFL¿FDOO\
ZHIRFXVRQWKHFRJQLWLYHSURFHVVHVWKDWSURPRWHVWRUDJHRIDQGDFFHVVWROLQJXLVWLFNQRZOHGJH
)LQGLQJVIURPFRJQLWLYHSV\FKRORJ\HJ$QGHUVRQ%DGGHOH\VKHGVRPHOLJKW
RQ WKH PHFKDQLVPV RI KXPDQ LQIRUPDWLRQ SURFHVVLQJ +XPDQ PHPRU\ FRQVLVWV RI VHQVRU\
PHPRU\ZRUNLQJPHPRU\DQGORQJWHUPPHPRU\'LIIHUHQWPRGHOVRIPHPRU\HJ%DGGHOH\
&RZDQ*D]]DQLJD,YU\0DQJXQDJUHHRQWKHJHQHUDOGLVWLQFWLRQEHWZHHQ
WKHVHWKUHHW\SHVRIPHPRU\EXWGLIIHULQVXFKDVSHFWVDVWKHUHODWLRQVKLSEHWZHHQVHQVRU\
PHPRU\ DQG ZRUNLQJ PHPRU\ DQG WKH FRPSRQHQWV RI ZRUNLQJ PHPRU\ LWVHOI HJ &RZDQ
+RZHYHUWKHVHGLVWLQFWLRQVGRQRWDIIHFWWKHJHQHUDOPRGHO1(OOLVZKLFKIRUPV
WKHEDVLVRIWKHWKHRUHWLFDOIUDPHZRUNSUHVHQWHGLQWKLVSDSHU
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 37
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
1HZLQFRPLQJLQIRUPDWLRQHJYLVXDORUDXGLWRU\LQSXWLV¿UVWUHJLVWHUHGLQVHQVRU\PHPRU\
DQG WKHQ IXUWKHU SURFHVVHG LQ ZRUNLQJ PHPRU\ %DGGHOH\ GHVFULEHV KRZ LQ ZRUNLQJ
PHPRU\ LQIRUPDWLRQ LV WHPSRUDULO\ PDLQWDLQHG PDQLSXODWHG DQG FRPELQHG ZLWK LQIRUPDWLRQ
IURP ORQJ WHUP PHPRU\7KHVH SURFHVVHV UHVXOW LQ WKH IRUPDWLRQ RI OLQNV EHWZHHQ WKH QHZ
LQIRUPDWLRQ DQG ORQJWHUP PHPRU\ &RZDQ 3URFHVVLQJ RI LQIRUPDWLRQ LQ ZRUNLQJ
PHPRU\OHDYHVPHPRU\WUDFHVLQORQJWHUPPHPRU\DQGGLIIHUHQWW\SHVRISURFHVVLQJUHVXOW
LQGLIIHUHQWWUDFHV/RFNKDUW&UDLN7KHVHWUDFHVDOORZDQLWHPFRQFHSWRUVWUXFWXUH
WREHDFWLYDWHGRUUHFDOOHGZKHQLWLVQHHGHG7KXVOHDUQLQJLVWKHUHVXOWRIPHQWDODFWLYLW\LQ
ZRUNLQJPHPRU\VXFKDVVHOHFWLQJFRPELQLQJDQGLQWHUSUHWLQJ7KHFRQFHSWRIDFWLYHPHQWDO
FRQVWUXFWLRQRINQRZOHGJHE\WKHOHDUQHUKDVDOVREHHQVWUHVVHGLQFRJQLWLYHDSSURDFKHVWR
VHFRQGODQJXDJHDFTXLVLWLRQ1(OOLV6FKPLGWDQGLQVRFLRFXOWXUDODQGFRJQLWLYH
HGXFDWLRQDOSV\FKRORJ\$ULHYLWFK+DHQHQ%UDQVIRUG%URZQ&RFNLQJ
,QFXUUHQWWHDFKLQJSUDFWLFHVHFRQGODQJXDJHOHDUQLQJWDVNVDUHXVHGWRHQJDJHOHDUQHUVLQ
GLIIHUHQWW\SHVRISURFHVVLQJ,QRUGHUWRPD[LPL]HWKHHIIHFWLYHQHVVRIWDVNVLWLVXVHIXOWR
NQRZZKDWDFFRXQWVIRUWKHOHDUQLQJLPSDFWRIWKHVHGLIIHUHQWW\SHVRISURFHVVLQJ%HIRUHZH
UHYLHZWKHOLWHUDWXUHLWLVQHFHVVDU\WRVSHFLI\ZKDWZHUHIHUWRZKHQZHXVHWKHWHUPWDVN
DQGKRZZHFRQFHSWXDOL]HWKHUHODWLRQVKLSEHWZHHQWDVNVDQGPHQWDOSURFHVVHV,QWKH¿HOG
RIVHFRQGODQJXDJHDFTXLVLWLRQWKHUHLVQRWRQHJHQHUDOO\DFFHSWHGGH¿QLWLRQRIDWDVNVHH
IRUDQRYHUYLHZ%\JDWH6NHKDQ6ZDLQ5(OOLV)RUH[DPSOHWKHGH¿QLWLRQE\
%UHHQLQFOXGHVDOOFODVVURRPDFWLYLWLHVGLUHFWHGDWODQJXDJHOHDUQLQJVXFKDVSUDFWLFH
H[HUFLVHVFRPPXQLFDWLRQWDVNVDQGODQJXDJHWHVWV$FFRUGLQJWR:LOOLVRQWKHRWKHU
KDQGDWDVNLVDJRDORULHQWHGDQGFRPPXQLFDWLYHDFWLYLW\LQZKLFKWKHOHDUQHUVDUHIUHHWR
FKRRVHWKHLURZQOLQJXLVWLFUHVRXUFHV6NHKDQSUHVHQWVDQH[WHQVLYHGH¿QLWLRQZKLFK
LQFOXGHVDPRQJRWKHUWKLQJVWKDWWDVNVVKRXOGEHPHDQLQJIXOUHODWHGWRUHDOZRUOGDFWLYLWLHV
DQGWKDWWDVNVVKRXOGEHDVVHVVHGDFFRUGLQJWRWKHLURXWFRPH(OOLVGH¿QHVWDVNVLQ
DPRUHJHQHUDOZD\DV³DFWLYLWLHVWKDWFDOOIRUSULPDULO\PHDQLQJIRFXVHGODQJXDJHXVH´7KHUH
DUHRIFRXUVHPDQ\PRUHGH¿QLWLRQVEXWDQH[WHQVLYHUHYLHZZRXOGEHEH\RQGWKHVFRSHRI
WKLVSDSHU,QRUGHUWRFDWHJRUL]HWKHVHGH¿QLWLRQV/LWWOHZRRGSURSRVHVDFRQWLQXXP
EHWZHHQDQH[FOXVLYHIRFXVRQIRUPVRQWKHRQHKDQGDQGIRFXVRQPHDQLQJRQWKHRWKHU
1RQFRPPXQLFDWLYHOHDUQLQJDFWLYLWLHVHJGHFRQWH[WXDOL]HGJUDPPDUGULOOVDUHDWWKHIRFXV
RQIRUPVHQG$WWKHRWKHUHQGLQZKLFKWKHIRFXVLVRQPHDQLQJDUHDXWKHQWLFFRPPXQLFDWLRQ
WDVNV7KHVWDJHVLQWKHPLGGOHLHSUHFRPPXQLFDWLYHFRPPXQLFDWLYHODQJXDJHSUDFWLFHDQG
VWUXFWXUHGFRPPXQLFDWLRQLQFOXGHWDVNVRUDFWLYLWLHVZKLFKJUDGXDOO\IRFXVRQIRUPVDVZHOO
DVPHDQLQJDQGZKLFKDUHSURJUHVVLYHO\OHVVSUHVWUXFWXUHGE\WKHWHDFKHU
)URPWKHFRJQLWLYHSHUVSHFWLYHRXWOLQHGDERYHWKHFRQFOXVLRQLVWKDWOHDUQHUVKDYHWRHQJDJH
LQVRPHW\SHRISURFHVVLQJLQRUGHUWRDFTXLUHWKHVHFRQGODQJXDJH7KHRQO\WKLQJWKDWZH
FDQEHVXUHDERXWLVWKDWLQWKHUHDOZRUOGODQJXDJHXVHDOZD\VHQWDLOVPHDQLQJ)RUWKLV
UHDVRQZHDGRSWWKHJHQHUDOGH¿QLWLRQRIDWDVNE\(OOLVDFFRUGLQJWRZKLFKWDVNVDUH
³DFWLYLWLHVWKDWFDOOIRUSULPDULO\PHDQLQJIRFXVHGODQJXDJHXVH´)URPRXUSHUVSHFWLYHWKHVH
DFWLYLWLHVLQFOXGHDOOWKHDFWLYLWLHVSODFHGRQ/LWWOHZRRG¶VFRQWLQXXPH[FHSWIRUWKRVHWKDW
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 38
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
IRFXVH[FOXVLYHO\RQIRUPV,QRUGHUWRFRQFHSWXDOL]HWKHUHODWLRQVKLSEHWZHHQWDVNVDVGH¿QHG
DERYHDQGPHQWDODFWLRQVZHVKDOOXVHWKHIUDPHZRUNSURSRVHGE\'ULHVVHQ+DHQHQDQG
:HVWKRII7KH\GLVWLQJXLVKEHWZHHQWKUHHFRQVWLWXHQWVRIDWDVNWKHDVVLJQPHQWWKH
HOLFLWHGPHQWDODFWLRQVDQGWKHFRQWHQW,WLVWKHDVVLJQPHQWRIWDVNVWKDWHOLFLWVPHQWDODFWLRQV
7KHVH PHQWDO DFWLRQV LQYROYH D VSHFL¿F FRQWHQW /HDUQHUV DOZD\V SURFHVV VRPHWKLQJ DQG
JHQHUDOO\VSHDNLQJLQVHFRQGODQJXDJHOHDUQLQJWDVNVWKHFRQWHQWLVPHDQLQJIXOODQJXDJH)RU
H[DPSOHWKHDVVLJQPHQWWRFKRRVHDQXPEHURIXVHIXOVFKRROVXEMHFWVIRUDVSHFL¿FSURIHVVLRQ
HOLFLWVDPHQWDODFWLRQVXFKDVFDWHJRUL]LQJ7KHVFKRROVXEMHFWVDUHWKHFRQWHQWDWZKLFKWKH
PHQWDODFWLRQVDUHGLUHFWHG7KHOHDUQHUPXVWSURFHVVGLIIHUHQWDVSHFWVRIWKHFRQWHQWLQRUGHU
WR EH DEOH WR FDWHJRUL]H IRU H[DPSOH PHDQLQJ XVH DQG IUHTXHQW FRRFFXUUHQFH ZLWK RWKHU
FRQFHSWV7DNHQWRJHWKHUDVVLJQPHQWHOLFLWHGPHQWDODFWLRQVDQGFRQWHQWFDQEHH[SHFWHGWR
SOD\DUROHLQSUHGLFWLQJWKHSRWHQWLDOHIIHFWLYHQHVVRIDWDVN
1RZ WKDW ZH KDYH VSHFL¿HG WKH W\SHV RI WDVNV ZH UHIHU WR LQ WKLV SDSHU ZH VKDOO UHYLHZ D
QXPEHURIDSSURDFKHVWKDWKDYHVRXJKWWRDFFRXQWIRUWKHHIIHFWRIGLIIHUHQWW\SHVRISURFHVVLQJ
HOLFLWHGE\WDVNVRQVHFRQGODQJXDJHOHDUQLQJ:HVKDOO¿UVWIRFXVRQWKHWKHRUHWLFDOSRVLWLRQV
WDNHQLQWKHOLWHUDWXUHRQWDVNEDVHGODQJXDJHHGXFDWLRQ
7KHSODFHRIPHQWDODFWLRQVLQWKHWDVNEDVHGDSSURDFK
-XVWDVWKHUHDUHYDULRXVGH¿QLWLRQVRIWDVNVWKHWDVNEDVHGDSSURDFKWRVHFRQGODQJXDJH
OHDUQLQJLVQRWDXQLIRUPDSSURDFK$QXPEHURIFKDUDFWHULVWLFVRIWKHWDVNEDVHGDSSURDFK
FDQEHVXPPDUL]HGWKRXJK7DVNVDUHFRQVLGHUHGWKHFHQWUDOXQLWRILQVWUXFWLRQDQGWKHPDLQ
VRXUFHRILQSXWLQWKHFODVVURRP5LFKDUGV5RGJHUV6ZDQDQGDUHVXSSRVHG
WR WULJJHU ³QDWXUDO DFTXLVLWLRQDO PHFKDQLVPV´ 6NHKDQ 6ZDQ DUJXHG WKDW
WKH SV\FKROLQJXLVWLF UDWLRQDOH IRU WDVNEDVHG LQVWUXFWLRQ LV JHQHUDOO\ DVVRFLDWHG ZLWK WKUHH
K\SRWKHVHV DQ RQOLQH K\SRWKHVLV 6FKPLGW 'RXJKW\ WKH QRWLFLQJ K\SRWKHVLV
6FKPLGWDQGWKHWHDFKDELOLW\K\SRWKHVLV3LHQHPDQQ)URPWKHVHK\SRWKHVHV
LW IROORZV WKDW VHFRQG ODQJXDJH DFTXLVLWLRQ WDNHV SODFH LQ WKH FRXUVH RI LQWHUDFWLRQ DQG
FRPPXQLFDWLRQWKDWOHDUQHUVPXVWFRQVFLRXVO\QRWLFHVDOLHQWIHDWXUHVLQWKHLQSXWLQRUGHUWR
EHDEOHWRDFTXLUHWKHPDQGWKDWOHDUQHUVIROORZDGHWHUPLQHGGHYHORSPHQWDOSDWK
:LOOLVGHVFULEHVVL[WDVNW\SHVZKLFKHOLFLWGLIIHUHQWW\SHVRISURFHVVLQJ/LVWHQLQJWDVNV
PLJKW LQYROYH EUDLQVWRUPLQJ RU IDFW¿QGLQJ 7DVNV GLUHFWHG DW RUGHULQJ DQG VRUWLQJ LQFOXGH
VHTXHQFLQJLWHPVLQDVSHFL¿FRUGHUUDQNLQJLWHPVDFFRUGLQJWRVSHFL¿FFULWHULDFDWHJRUL]LQJ
LWHPV LQ JLYHQ JURXSV DQG FODVVLI\LQJ LWHPV ZLWKRXW SUHYLRXVO\ JLYHQ JURXSV 7DVNV ZKLFK
LQYROYHFRPSDULQJWULJJHUSURFHVVHVVXFKDVPDWFKLQJDQG¿QGLQJVLPLODULWLHVDQGGLIIHUHQFHV
3UREOHPVROYLQJWDVNVFDQHOLFLWGLIIHUHQWW\SHVRIUHDVRQLQJ7DVNVGLUHFWHGDWVKDULQJSHUVRQDO
H[SHULHQFHV HOLFLW LQWHUDFWLRQ RQ VRFLDO DQG SHUVRQDO WRSLFV &UHDWLYH WDVNV DUH ODUJHVFDOH
SURMHFWVZKLFKLQYROYHIUHHRUFUHDWLYHODQJXDJHXVH$OWKRXJK:LOOLVOLVWVDQXPEHURI
PHQWDODFWLRQVWKDWFDQEHHOLFLWHGE\WDVNVVXFKDVVHTXHQFLQJUDQNLQJDQGFRPSDULQJVKH
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 39
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
GRHVQRWSURYLGHDQ\WKHRUHWLFDODFFRXQWRIKRZWKHVHSURFHVVHVPLJKWIRVWHUWKHDFTXLVLWLRQ
RIQHZOLQJXLVWLFHOHPHQWV
1XQDQGLVWLQJXLVKHVEHWZHHQVL[FRPSRQHQWVRIDWDVNJRDOLQSXWSURFHGXUHVOHDUQHU
UROHWHDFKHUUROHDQGVHWWLQJV+HGH¿QHVSURFHGXUHVDV³ZKDWOHDUQHUVZLOODFWXDOO\GRZLWK
WKHLQSXWWKDWIRUPVWKHSRLQWRIGHSDUWXUHIRUWKHOHDUQLQJWDVN´$FFRUGLQJWR1XQDQ
WKHUHDUHWKUHHZD\VLQZKLFKWKHVHSURFHVVHVFDQEHDQDO\]HG)LUVWKHUHIHUVWRWKHFRQFHSW
RISURFHGXUDODXWKHQWLFLW\WRLQGLFDWHWKDWVRPHSURFHVVHVHOLFLWHGE\WKHWDVNUHVHPEOHPRUH
FORVHO\UHDOOLIHDFWLYLWLHVWKDQRWKHUV6HFRQGVRPHSURFHVVHVDUHGLUHFWHGDWVNLOOJHWWLQJ
ZKHUHDV RWKHUV DUH GLUHFWHG DW VNLOO XVLQJ 7KH WKLUG ZD\ RI DQDO\]LQJ OHDUQHU SURFHVVHV
LV FRQFHUQHG ZLWK WKH GHYHORSPHQW RI ÀXHQF\ RU DFFXUDF\ 'HVSLWH KLV XVHIXO GLVWLQFWLRQ RI
SURFHGXUHVDVDWDVNFRPSRQHQW1XQDQGRHVQRWSURYLGHDQDFFRXQWRIWKHGLIIHUHQWLDOHIIHFWV
RIGLIIHUHQWW\SHVRISURFHGXUHV
5(OOLVHQXPHUDWHVVL[FULWLFDOIHDWXUHVRIDWDVNDWDVNLVDZRUNSODQZKLFKLQYROYHVD
SULPDU\IRFXVRQPHDQLQJUHDOZRUOGSURFHVVHVRIODQJXDJHXVHDQGDQ\RIWKHIRXUODQJXDJH
VNLOOV$WDVNVKRXOGDOVRHOLFLWFRJQLWLYHSURFHVVHVDQGKDYHDFRPPXQLFDWLYHRXWFRPH:LWK
UHJDUGWRWKHFRJQLWLYHSURFHVVHVHOLFLWHGE\WKHWDVN5(OOLVSRLQWVRXWWKDWDWDVN
VKRXOGHQJDJHOHDUQHUVLQFRJQLWLYHSURFHVVHVVXFKDVFODVVLI\LQJRUGHULQJDQGHYDOXDWLQJ
'HVSLWHWKLVHPSKDVLVRQWKHFRJQLWLYHSURFHVVHVHOLFLWHGE\WDVNV5(OOLVGRHVQRW
SURYLGH DQ\ WKHRUHWLFDO DFFRXQW ZKLFK DOORZV XV WR HVWLPDWH WKH HIIHFWLYHQHVV RI GLIIHUHQW
FRJQLWLYHSURFHVVHVLQWHUPVRIVHFRQGODQJXDJHDFTXLVLWLRQ
,QDUHYLHZDUWLFOHRQWDVNEDVHGLQVWUXFWLRQ6NHKDQGHVFULEHVWKHFRJQLWLYHDSSURDFK
WRWDVNVZKLFKVWXGLHVWKHDOORFDWLRQRIDWWHQWLRQDOUHVRXUFHVGXULQJWDVNSHUIRUPDQFHDQGWKH
HIIHFWRIWDVNFKDUDFWHULVWLFVDQGFRQGLWLRQVRQSHUIRUPDQFH5RELQVRQPDNHVDIXUWKHU
GLVWLQFWLRQEHWZHHQWKHHIIHFWVRIWDVNVRQVHFRQGODQJXDJHSHUIRUPDQFHDQGGHYHORSPHQW
7KHPRGHOVSURSRVHGE\6NHKDQDQG5RELQVRQVKDUHVLPLODULWLHVEXWGLIIHU
LQWKHLUSUHGLFWLRQVZLWKUHVSHFWWRWKHHIIHFWRIWDVNVRQWKHÀXHQF\DFFXUDF\DQGFRPSOH[LW\
RISHUIRUPDQFHDQGRQWKHDOORFDWLRQRIDWWHQWLRQDOUHVRXUFHV$OWKRXJKDIXOOFRPSDULVRQDQG
GLVFXVVLRQRIWKHWZRPRGHOVLVEH\RQGWKHVFRSHRIWKLVSDSHUZHVKDOOEULHÀ\FRQVLGHUERWK
PRGHOV KHUH DQG IRFXV RQ WKHLU WKHRUHWLFDO DFFRXQWV RI WKH HIIHFWLYHQHVV RI PHQWDO DFWLRQV
HOLFLWHGE\WDVNV
6NHKDQDUJXHGWKDWWDVNVFDQVHOHFWLYHO\FKDQQHODWWHQWLRQWRÀXHQF\DFFXUDF\DQG
FRPSOH[LW\RIODQJXDJHXVH7KLVFDQEHDFKLHYHGE\PDQLSXODWLQJVSHFL¿FGLPHQVLRQVLQWKH
GHVLJQ DQG VHOHFWLRQ RI WDVNV +H GLVWLQJXLVKHV EHWZHHQ WKUHH WDVN GLPHQVLRQV ³ODQJXDJH
UHTXLUHG´³WKLQNLQJUHTXLUHG´DQG³SHUIRUPDQFHFRQGLWLRQV´S7KHODQJXDJHUHTXLUHGLV
ODEHOHGFRGHFRPSOH[LW\DQGFRPSULVHVOLQJXLVWLFFRPSOH[LW\DQGYDULHW\YRFDEXODU\ORDGDQG
YDULHW\DQGUHGXQGDQF\DQGGHQVLW\7KHWKLQNLQJUHTXLUHGLVODEHOHGFRJQLWLYHFRPSOH[LW\DQGLV
EURNHQGRZQLQWRWZRFDWHJRULHVFRJQLWLYHIDPLOLDULW\DQGFRJQLWLYHSURFHVVLQJ7KHGLIIHUHQFH
EHWZHHQFRJQLWLYH IDPLOLDULW\ DQGFRJQLWLYH SURFHVVLQJ VHHPV WREHZKHWKHUWKHGHFODUDWLYH
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 40
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
NQRZOHGJHQHFHVVDU\WRSHUIRUPDWDVNLVUHDGLO\DYDLODEOHWRWKHOHDUQHUDVDIDPLOLDUFKXQN
RU ZKHWKHU WKH WDVN UHTXLUHV VXEVWDQWLDO FRPSXWDWLRQ &RJQLWLYH IDPLOLDULW\ FRPSULVHV WRSLF
IDPLOLDULW\DQGSUHGLFWDELOLW\ZKLFKUHODWHWREDFNJURXQGNQRZOHGJHDQGWKHOHDUQHUV¶IDPLOLDULW\
ZLWKWKHPDFURVWUXFWXUHRIWKHWDVNW\SHV&RJQLWLYHSURFHVVLQJLVWKHSURFHVVLQJORDGGXULQJWDVN
SHUIRUPDQFH6NHKDQPHQWLRQVWKHIROORZLQJHOHPHQWVRIFRJQLWLYHSURFHVVLQJRUJDQL]DWLRQRI
WDVNUHOHYDQWLQIRUPDWLRQDPRXQWRIFRPSXWDWLRQFODULW\DQGVXI¿FLHQF\RILQIRUPDWLRQDQG
W\SHRILQIRUPDWLRQ+RZHYHULIZHGLVWLQJXLVKEHWZHHQFRJQLWLYHSURFHVVHVDQGWKHFRQWHQW
RI WKHVH SURFHVVHV LW LV XQFOHDU ZKHUH WKHVH HOHPHQWV ¿W LQ 2UJDQL]DWLRQ RI WDVNUHOHYDQW
LQIRUPDWLRQ DQG DPRXQW RI FRPSXWDWLRQ VHHP WR UHIHU PRUH WR SURFHVVLQJ LWVHOI ZKHUHDV
FODULW\VXI¿FLHQF\DQGW\SHRILQIRUPDWLRQVHHPWREHUHODWHGWRWKHREMHFWWKDWLVSURFHVVHG
$WRQHSRLQW6NHKDQDQDO\]HVWKHUHODWLRQVKLSEHWZHHQW\SHRISURFHVVLQJDQGWKHFRQWHQW
WKDWLVSURFHVVHG+HSRLQWVRXWWKDWDPRXQWRIFRPSXWDWLRQPLJKWHOLFLWWKHXVHRIPDQ\LWHPV
VLPXOWDQHRXVO\ RU WKH XVH RI LI WKHQ VWDWHPHQWV +RZHYHU WKLV LVRODWHG UHIHUHQFH GRHV QRW
DOORZXVWRSUHGLFWWKHHIIHFWRIDVSHFL¿FW\SHRISURFHVVLQJ7KHWKLUGHOHPHQWRI6NHKDQ¶VWDVN
GLPHQVLRQVLVSHUIRUPDQFHFRQGLWLRQV7KHVHHQWDLOGLIIHUHQWW\SHVRIFRPPXQLFDWLYHVWUHVV
VXFKDVWLPHOLPLWVDQGSUHVVXUHVSHHGRISUHVHQWDWLRQQXPEHURISDUWLFLSDQWVOHQJWKRIWH[W
XVHG W\SH RI UHVSRQVH UHTXLUHG DQG RSSRUWXQLWLHV WR FRQWURO WKH LQWHUDFWLRQ 7KHVH IDFWRUV
LQÀXHQFHSURFHVVLQJDQGPLJKWGLUHFWDWWHQWLRQWRÀXHQF\DFFXUDF\RUFRPSOH[LW\
6NHKDQ¶V PRGHO RI WDVN GLPHQVLRQV LV DLPHG DW SUHGLFWLQJ ZKLFK WDVNV GLUHFW WKH OHDUQHUV¶
DWWHQWLRQWRDVSHFWVRIÀXHQF\DFFXUDF\DQGFRPSOH[LW\$VVXFKLWLVDYDOXDEOHPRGHOIRU
XQIRFXVHGWDVNV,WPLJKWQRWEHVXLWDEOHIRUWKHDQDO\VLVRIIRFXVHGWDVNVKRZHYHU$WYDULRXV
SRLQWLQKLVERRN6NHKDQPDNHVFOHDUWKDWWKHDFTXLVLWLRQRIQHZOLQJXLVWLFHOHPHQWV
LVQRWWKHSULPDU\IRFXVRIWKHW\SHRIWDVNVKHSURSRVHV:HDUJXHWKHUHIRUHWKDW6NHKDQ¶V
PRGHO GRHV QRW SURYLGH D WKHRUHWLFDO DFFRXQW ZLWK UHJDUG WR WKH PHQWDO DFWLRQV HOLFLWHG E\
IRFXVHGWDVNV
5RELQVRQSURSRVHVDWULDGLFFRPSRQHQWLDOIUDPHZRUNIRULQYHVWLJDWLQJWDVNHIIHFWV
RQ 6/$ 7KH IUDPHZRUN FRQVLVWV RI WKUHH IDFWRUV ZKLFK WDNHQ WRJHWKHU LQÀXHQFH VHFRQG
ODQJXDJHDFTXLVLWLRQWDVNFRPSOH[LW\WDVNFRQGLWLRQVDQGWDVNGLI¿FXOW\7KH¿UVWIDFWRUWDVN
FRPSOH[LW\ FRQVLVWV RI WZR GLPHQVLRQV UHVRXUFHGLUHFWLQJ DQG UHVRXUFHGLVSHUVLQJ IDFWRUV
,QFUHDVLQJ WDVN FRPSOH[LW\ DORQJ WKH GLPHQVLRQ RI UHVRXUFHGLUHFWLQJ IDFWRUV LQFUHDVHV WKH
WDVN¶VFRQFHSWXDOGHPDQGV%HFDXVHWKH/HQFRGHVWKHVHFRQFHSWXDOGHPDQGVWKLVZLOOUHVXOW
LQDQLQFUHDVHRIWKHOLQJXLVWLFGHPDQGVRQWKH/XVHU7KLVW\SHRILQFUHDVLQJWDVNFRPSOH[LW\
LVK\SRWKHVL]HGWRUHVXOWLQLQWHUODQJXDJHGHYHORSPHQW([DPSOHVRIUHVRXUFHGLUHFWLQJIDFWRUV
DUH WKH QXPEHU RI HOHPHQWV WR EH GHVFULEHG RU UHIHUHQFHV WR WKH KHUHDQGQRZ YHUVXV WKH
WKHUHDQGWKHQ,QFUHDVLQJWDVNFRPSOH[LW\DORQJWKHGLPHQVLRQRIUHVRXUFHGLVSHUVLQJIDFWRUV
PHDQVJUDGXDOO\UHPRYLQJWDVNHOHPHQWVWKDWVXSSRUWSURFHVVLQJVXFKDVSODQQLQJWLPHRU
DFFHVVWRSULRUNQRZOHGJHRUDGGLQJH[WUDHOHPHQWVVXFKDVGXDOWDVNVLQRUGHUWRLQFUHDVH
SUDFWLFHRIDFFHVVWRDQGXVHRILQWHUODQJXDJHNQRZOHGJHGXULQJSHUIRUPDQFH$VVXFKDQ
LQFUHDVHLQWKHGLPHQVLRQRIUHVRXUFHGLVSHUVLQJIDFWRUVLVDOVRK\SRWKHVL]HGWRIRVWHUVHFRQG
ODQJXDJHSHUIRUPDQFH7KHVHFRQGIDFWRUWDVNFRQGLWLRQVFDQEHEURNHQGRZQLQWRWZRSDUWV
SDUWLFLSDWLRQDQGSDUWLFLSDQWYDULDEOHV3DUWLFLSDWLRQYDULDEOHVUHIHUWRWKHW\SHVRISDUWLFLSDWLRQ
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 41
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
UHTXLUHGVXFKDVRQHZD\RUWZRZD\WDVNVRURSHQYHUVXVFORVHGWDVNV3DUWLFLSDQWYDULDEOHV
UHIHUWRWKHUHODWLRQVKLSVEHWZHHQWKHSDUWLFLSDQWVIRUH[DPSOHJHQGHUDQGSRZHU7KHWKLUG
IDFWRUWDVNGLI¿FXOW\FRPSULVHVOHDUQHUIDFWRUVWKDWLQÀXHQFHWKHSHUFHSWLRQRIWDVNGLI¿FXOW\
E\WKHLQGLYLGXDOOHDUQHUVXFKDVDELOLW\DQGDIIHFWLRQ5RELQVRQ¶VFRJQLWLRQK\SRWKHVLV
SUHGLFWV WKDW LQFUHDVHG FRJQLWLYH WDVN FRPSOH[LW\ ZLOO OHDG WR DQ LQFUHDVH LQ LQWHUDFWLYH DQG
FRJQLWLYH SURFHVVHV ZKLFK ZLOO UHVXOW LQ SRVLWLYH HIIHFWV RQ SHUIRUPDQFH DQG GHYHORSPHQW
,QFUHDVHVLQWDVNFRPSOH[LW\DUHK\SRWKHVL]HGWROHDGWRDPRUHDFFXUDF\DQGFRPSOH[LW\RI
SHUIRUPDQFHEPRUHLQWHUDFWLRQQHJRWLDWLRQRIPHDQLQJDQGHODERUDWLYHSURFHVVLQJFPRUH
DWWHQWLRQWRQRWLFLQJRIDQGLQFRUSRUDWLRQRIIRUPVLQWKHLQSXW
5RELQVRQ¶VH[DPSOHV RIFRJQLWLYH SURFHVVHV DUHDWWHQWLRQ WRLQSXW DQGRXWSXW QRWLFLQJ DQG
UHKHDUVDOLQZRUNLQJPHPRU\$OWKRXJK5RELQVRQ¶VPRGHOLQFOXGHVUHIHUHQFHVWRWKH
FRJQLWLYHSURFHVVHVHOLFLWHGE\WDVNVLWGRHVQRWSURYLGHGHWDLOHGDFFRXQWVRIWKHGLIIHUHQWLDO
HIIHFWVRIGLIIHUHQWW\SHVRIPHQWDODFWLRQVHOLFLWHGE\WDVNV
7RFRQFOXGHWKHIUDPHZRUNVIRUWDVNDQDO\VLVUHYLHZHGDERYHDOOUHIHUWRWKHPHQWDODFWLRQV
WKHOHDUQHUVDUHLQYROYHGLQGXULQJWDVNSHUIRUPDQFHIRUH[DPSOHPDWFKLQJFRPSDULQJDQG
UHDVRQLQJ:LOOLVFRPSUHKHQGLQJDQGPDQLSXODWLQJ1XQDQFODVVLI\LQJRUGHULQJ
DQGHYDOXDWLQJ5(OOLVDPRXQWRIFRPSXWDWLRQUHTXLUHG6NHKDQDQGDWWHQWLRQ
DQG QRWLFLQJ 5RELQVRQ 7KLV PHDQV WKDW SURSRQHQWV RI WKH WDVNEDVHG DSSURDFK
DJUHH RQ WKH FHQWUDO SODFH RI PHQWDO DFWLYLW\ LQ VHFRQG ODQJXDJH OHDUQLQJ +RZHYHU WKHVH
IUDPHZRUNVGRQRWSURYLGHFOHDUDFFRXQWVRIWKHXQGHUO\LQJPHFKDQLVPVWKDWUHODWHWKHVHW\SHV
RISURFHVVLQJWRWKHDFTXLVLWLRQRIQHZOLQJXLVWLFHOHPHQWV,WLVXQFOHDUZK\DQGKRZWKHVH
PHQWDOSURFHVVHVIRUH[DPSOHPDWFKLQJRUFODVVLI\LQJHIIHFWLYHO\UHVXOWLQWKHDFTXLVLWLRQRI
QHZOLQJXLVWLFHOHPHQWV0RUHRYHUWKHVHIUDPHZRUNVGRQRWDOORZXVWRHVWLPDWHWKHGLIIHUHQWLDO
HIIHFWLYHQHVVRIGLIIHUHQWW\SHVRISURFHVVLQJHOLFLWHGE\DWDVN6KRXOGDVWXGHQWZKRZDQWV
WRDFTXLUHQHZYRFDEXODU\RUJUDPPDUFKRRVHDWDVNZKLFKLQYROYHVFODVVLI\LQJDQGRUGHULQJ
RUUDWKHUDWDVNZKLFKLQYROYHVPDWFKLQJ"2QHRIWKHUHDVRQVIRUWKLVPLJKWEHWKDWJHQHUDOO\
VSHDNLQJSURSRQHQWVRIWKHWDVNEDVHGDSSURDFKDUHQRWSULPDULO\FRQFHUQHGZLWKWDVNVWKDW
IRFXVRQWKHDFTXLVLWLRQRIQHZOLQJXLVWLFHOHPHQWV6ZDQ2QHRIWKHNH\FULWHULDRID
WDVNLVWKDWOHDUQHUVDUHIUHHWRFKRRVHWKHLURZQOLQJXLVWLFUHVRXUFHV:LOOLV6NHKDQ
7KLVPHDQVWKDWWKHUHVHDUFKDJHQGDKDVIRFXVHGRQWKHHIIHFWVRIWDVNFKDUDFWHULVWLFV
RQSHUIRUPDQFHIDFWRUVVXFKDVÀXHQF\DFFXUDF\DQGFRPSOH[LW\6NHKDQ5RELQVRQ
$Q H[FHSWLRQ LV 5RELQVRQ¶V IUDPHZRUN ZKLFK SUHGLFWV WKDW DQ LQFUHDVH LQ
FRJQLWLYHGHPDQGVZLOOUHVXOWLQDPRQJRWKHUWKLQJVDWWHQWLRQWRDQGVXEVHTXHQWLQFRUSRUDWLRQ
RIIRUPVLQWKHLQSXW
7R VXP XS WKH WDVNEDVHG DSSURDFK GRHV QRW SURYLGH LQGHSWK WKHRUHWLFDO DFFRXQWV RI WKH
OHDUQLQJLPSDFWRIGLIIHUHQWW\SHVRISURFHVVLQJ+RZHYHULQRUGHUWRDQDO\]HWKHHIIHFWLYHQHVV
RIDWDVNLWLVQHFHVVDU\WRGHWHUPLQHWKHOHDUQLQJLPSDFWRIPHQWDODFWLRQVHOLFLWHGE\DWDVN
,QWKHUHPDLQGHURIWKLVSDSHUZHVKDOOFRQVLGHUDQXPEHURIWKHRUHWLFDODSSURDFKHVWKDWPLJKW
KHOSXVWRIXUWKHUH[SORUHWKLVDUHD,QWKHQH[WVHFWLRQZHVKDOOWXUQWRVRPHH[DPSOHVRI
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 42
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
W\SRORJLHVRIPHQWDODFWLRQVIRUVHFRQGODQJXDJHOHDUQLQJWKDWZHUHQRWVSHFL¿FDOO\UHODWHGWR
WKHWDVNEDVHGDSSURDFK
7\SRORJLHVRIPHQWDODFWLRQVIRUVHFRQGODQJXDJHOHDUQLQJ
&KDPRW DQG 2¶0DOOH\ SURSRVH OHDUQHUV D W\SRORJ\ RI ODQJXDJH OHDUQLQJ VWUDWHJLHV
EDVHGRQFRJQLWLYHWKHRULHVRIWKHDFWLYHPHQWDOSURFHVVLQJRIQHZLQIRUPDWLRQ7KHOHDUQLQJ
VWUDWHJLHV DUH GLYLGHG LQWR PHWDFRJQLWLYH VWUDWHJLHV FRJQLWLYH VWUDWHJLHV DQG VRFLDODIIHFWLYH
VWUDWHJLHV7KH FRJQLWLYH VWUDWHJLHV ZKLFK DFFRUGLQJ WR &KDPRW DQG 2¶0DOOH\ LQWHUDFW³ZLWKWKHPDWHULDOWREHOHDUQHGE\PDQLSXODWLQJLWPHQWDOO\RUSK\VLFDOO\´DUHRIPRVW
LQWHUHVWWRXV
&KDPRWDQG2¶0DOOH\SUHVHQWHLJKWFRJQLWLYHOHDUQLQJVWUDWHJLHV(ODERUDWLRQRISULRUNQRZOHGJH
HQWDLOVWKHOLQNLQJRIQHZLQIRUPDWLRQWRSULRUNQRZOHGJHYLDDVVRFLDWLRQVRUDQDORJLHV0DNLQJ
LQIHUHQFHVLVWKHVWUDWHJ\LQZKLFKWKHOLQJXLVWLFFRQWH[WLVXVHGWRJXHVVWKHPHDQLQJRIZRUGV
WR FRPSOHWH RU WR SUHGLFW LQIRUPDWLRQ /LQJXLVWLF WUDQVIHU UHIHUV WR WKH XVH RI SULRU OLQJXLVWLF
NQRZOHGJH WR VXSSRUW FRPSUHKHQVLRQ DQG SURGXFWLRQ *URXSLQJ PHDQV FODVVLI\LQJ PDWHULDO
DFFRUGLQJWRVSHFL¿FIHDWXUHV,PDJHU\LVWKHXVHRIYLVXDOLQIRUPDWLRQWRFRPSUHKHQGRUUHFDOO
QHZYHUEDOLQIRUPDWLRQ$XGLWRU\UHSUHVHQWDWLRQPHDQVPHQWDOO\UHSHDWLQJWKHVRXQGRIDZRUG
RUSKUDVHWRVXSSRUWOHDUQLQJ'HGXFWLRQDQGLQGXFWLRQUHIHUWRWKHDSSOLFDWLRQRIUXOHVRUWR
LQYHQWLQJUXOHVWRXQGHUVWDQGODQJXDJH6XPPDUL]LQJLVV\QWKH]LQJWKHLQIRUPDWLRQLQRUGHU
WRPDNHVXUHLWLVUHWDLQHG7KLVFODVVL¿FDWLRQRIPHQWDODFWLRQVLVEDVHGRQFRJQLWLYHWKHRULHV
RIDFWLYHO\PDQLSXODWLQJLQIRUPDWLRQLQZRUNLQJPHPRU\$VVXFKLWLVDPRUHGHWDLOHGDFFRXQW
RIWKHPHQWDODFWLRQVWKDWIRVWHUVHFRQGODQJXDJHOHDUQLQJWKDQWKRVHSURYLGHGE\SURSRQHQWV
RIWKHWDVNEDVHGDSSURDFK+RZHYHUWKHW\SRORJ\E\&KDPRWDQG2¶0DOOH\GRHVQRW
SURYLGHDWKHRUHWLFDODFFRXQWRIGLIIHUHQFHVLQOHDUQLQJLPSDFWRIGLIIHUHQWOHDUQLQJVWUDWHJLHV
,VWKHUHIRUH[DPSOHDGLIIHUHQFHLQOHDUQLQJLPSDFWEHWZHHQHODERUDWLQJXVLQJLPDJHU\DQG
JURXSLQJ"2QZKDWWKHRUHWLFDOJURXQGVFDQWKHGLIIHUHQFHVRUVLPLODULWLHVLQOHDUQLQJLPSDFWRI
WKHVHPHQWDODFWLRQVEHHVWDEOLVKHG"
/DXIHU DQG +XOVWLMQ SURSRVH WKH LQYROYHPHQW ORDG K\SRWKHVLV ZKLFK DLPV DW WKH
RSHUDWLRQDOL]DWLRQRIGLIIHUHQWW\SHVRIPHQWDODFWLRQVHODERUDWHSURFHVVLQJ$QGHUVRQ
&UDLN/RFNKDUWDQGDWWHQWLRQ6FKPLGW7KHK\SRWKHVLVLVH[SOLFLWO\GLUHFWHGDW
LQFLGHQWDOYRFDEXODU\DFTXLVLWLRQDVDUHVXOWRIWDVNSHUIRUPDQFH7KHDPRXQWRILQYROYHPHQWLV
GHWHUPLQHGE\WKHIDFWRUVQHHGVHDUFKDQGHYDOXDWLRQ1HHGLVWKHPRWLYDWLRQDOQRQFRJQLWLYH
SDUWRIWKHLQYROYHPHQWORDGDQGUHIHUVWRWKHPRWLYDWLRQWRFRPSOHWHWKHWDVN0RGHUDWHQHHG
LVH[WHUQDOO\LPSRVHGIRUH[DPSOHE\WKHWHDFKHUZKLOHDVWURQJQHHGLVWKHOHDUQHU¶VRZQ
PRWLYDWLRQWRFRPSOHWHWKHWDVNV6HDUFK¶DQGµHYDOXDWLRQDUHWKHFRJQLWLYHFRPSRQHQWVRIWKH
LQYROYHPHQWORDGµ6HDUFK¶LVWKHVHDUFKIRUWKHPHDQLQJRIDQ/ZRUGLQWKH/RUWKHVHDUFK
IRUWKH/ZRUGZKLFKWUDQVODWHVWKH/ZRUGIRUH[DPSOHE\XVLQJDGLFWLRQDU\RUDVNLQJWKH
WHDFKHU6HDUFKFDQHLWKHUEHSUHVHQWRUDEVHQWGXULQJWDVNSHUIRUPDQFH(YDOXDWLRQFDQPHDQ
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 43
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
DWRFRPSDUHWKHPHDQLQJRIDVSHFL¿FZRUGZLWKRWKHUZRUGVRUUHFRJQL]LQJWKHGLIIHUHQFHV
EHWZHHQ ZRUGV E WR FRPSDUH D VSHFL¿F PHDQLQJ RI D ZRUG ZLWK LWV RWKHU PHDQLQJV F WR
DVVHVVZKHWKHUDZRUG¿WVLQDVSHFL¿FFRQWH[W
7KH ¿UVW WZR W\SHV RI HYDOXDWLRQ DUH PRGHUDWH ZKLOH WKH WKLUG LV VWURQJ ,W LV H[SHFWHG WKDW
WDVNV ZKLFK HOLFLW D KLJKHU LQYROYHPHQW ORDG \LHOG EHWWHU UHWHQWLRQ RI YRFDEXODU\ WKDQ WDVNV
ZLWK D ORZHU LQYROYHPHQW ORDG IRU HPSLULFDO HYLGHQFH VHH +XOVWLMQ /DXIHU /DXIHU
DQG +XOVWLMQ SUHVHQW WKH FRQFHSW RI WDVNLQGXFHG LQYROYHPHQW DV DQ LQLWLDO DWWHPSW
WR RSHUDWLRQDOL]H GLIIHUHQW W\SHV RI SURFHVVLQJ LQ LQFLGHQWDO YRFDEXODU\ WDVNV$V VXFK LW LV
DYDOXDEOHFRQWULEXWLRQWRWKHVWXG\RILQFLGHQWDOYRFDEXODU\DFTXLVLWLRQ+RZHYHUDQXPEHU
RI LVVXHV UHPDLQ XQFOHDU :KDW PHFKDQLVPV DFFRXQW IRU WKH VXSHULRU HIIHFWLYHQHVV RI VD\
VWURQJHYDOXDWLRQDVRSSRVHGWRPRGHUDWHHYDOXDWLRQ"7KHIDFWRUVVHDUFKDQGHYDOXDWLRQERWK
VHHPWRLPSO\VRPHIRUPRIFRJQLWLYHFRPSDULVRQ:KDWDERXWRWKHUW\SHVRISURFHVVLQJIRU
H[DPSOHWKRVHPHQWLRQHGE\&KDPRWDQG2¶0DOOH\",WLVXQFOHDUZKHWKHUWKHFRQFHSW
RILQYROYHPHQWORDGFDQEHDSSOLHGWRGHWHUPLQHWKHGLIIHUHQWLDOHIIHFWVRIWKHVHPHQWDODFWLRQV
7KH LQYROYHPHQW ORDG K\SRWKHVLV LV DLPHG DW SUHGLFWLQJ ZKLFK PHQWDO DFWLRQV \LHOG EHWWHU
UHWHQWLRQRIYRFDEXODU\:KDWDERXWWKHHIIHFWVRIPHQWDODFWLRQVRQUHDOWLPHODQJXDJHXVH"
7KHFRQFHSWRILQYROYHPHQWORDGGRHVQRWVHHPWRSUHGLFWZKHWKHUGLIIHUHQFHVLQLQYROYHPHQW
UHVXOWLQGLIIHUHQFHVZLWKUHVSHFWWRHDVHRIDFWLYDWLRQRIWKHYRFDEXODU\LWHPV
,Q RUGHU WR WDNH D FORVHU ORRN DW WKH OHDUQLQJ LPSDFW RI FRJQLWLYH SURFHVVHV ZH VKDOO QRZ
WXUQWRDQXPEHURISDSHUVIURPFRJQLWLYHSV\FKRORJ\PRUHVSHFL¿FDOO\WKRVHRQWKHGHSWKRI
SURFHVVLQJK\SRWKHVLVE\&UDLNDQG/RFNKDUW7KHVHSDSHUVLQWURGXFHWZRDVSHFWVWKDW
KDYHUHFHLYHGOLWWOHDWWHQWLRQLQWKHSDSHUVUHYLHZHGDERYHWKHLPSRUWDQFHRIWKHFKDUDFWHULVWLFV
RI WKH FRQWHQW WKDW LV SURFHVVHG DQG WKH GLIIHUHQWLDO HIIHFWV RI SURFHVVLQJ RQ UHWHQWLRQ DQG
UHFDOO
7\SRORJLHVRIPHQWDODFWLRQVIURPFRJQLWLYHSV\FKRORJ\
&UDLNDQG/RFNKDUWSURSRVHWKHOHYHOVRISURFHVVLQJIUDPHZRUNLQZKLFKPHPRU\LV
FRQFHLYHGRIDVWKHE\SURGXFWRIPHQWDODFWLYLW\1HZLQFRPLQJLQSXWSURFHHGVWKURXJKDVHULHV
RISURFHVVLQJVWDJHVDQGDWHDFKVWDJHWKHLQSXWLVEHLQJDQDO\]HGIRUDGLIIHUHQWIHDWXUHW\SH
7KH¿UVWVWDJHVRILQSXWDQDO\VLVLQYROYHSK\VLFDODQGVHQVRU\IHDWXUHVDQGSDWWHUQUHFRJQLWLRQ
$WDODWHUVWDJHVHPDQWLFIHDWXUHVDUHDQDO\]HG7KLVDQDO\VLVUHVXOWVLQDPHPRU\WUDFHRI
WKHLQSXWZKLFKDOORZVWKHSURFHVVHGPDWHULDOWREHUHPHPEHUHG$GHHSHUOHYHORIDQDO\VLV
LH DQDO\VLV RI WKH LQSXW QRW RQO\ DW WKH ¿UVW VHQVRU\ VWDJHV EXW DOVR DW WKH ODWHU VHPDQWLF
VWDJHVZLOOUHVXOWLQPRUHGXUDEOHPHPRU\WUDFHV7KXVGHSWKLVRSHUDWLRQDOL]HGDVSURFHVVLQJ
VHPDQWLFDQGFRQFHSWXDOIHDWXUHVRIWKHLQSXWZKHUHDVVKDOORZUHIHUVWRWKHSURFHVVLQJRI
VHQVRU\IHDWXUHVVXFKDVRUWKRJUDSKLFRUSKRQRORJLFDOFKDUDFWHULVWLFVRIWKHZRUGV%HVLGHV
WKH FRQFHSW RI GHSWK &UDLN DQG /RFNKDUW LQWURGXFHG WKH FRQFHSW RI HODERUDWHQHVV
7KH\GLVWLQJXLVKHGEHWZHHQWZRW\SHVRIUHKHDUVDO0DLQWHQDQFHUHKHDUVDOLVURWHUHSHWLWLRQ
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 44
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
RUWKHUHKHDUVDORIDQLWHPDWWKHVDPHGHSWK(ODERUDWLYHUHKHDUVDOLQYROYHVSURFHVVLQJDW
GHHSHUOHYHOV,WZDVK\SRWKHVL]HGWKDWRQO\HODERUDWLYHUHKHDUVDOOHDGVWRORQJWHUPUHWHQWLRQ
,QDVXEVHTXHQWDUWLFOH&UDLNDQG7XOYLQJSUHVHQWHGDQXPEHURIH[SHULPHQWVRQWKH
GHSWKRISURFHVVLQJK\SRWKHVLV6XEMHFWVZHUHLQGXFHGWRSURFHVVZRUGVLQDVSHFL¿FZD\E\
DQVZHULQJGLIIHUHQWW\SHVRITXHVWLRQVDERXWWKHWDUJHWZRUGV3URFHVVLQJDWVKDOORZOHYHOV
ZDVLQGXFHGE\DVNLQJTXHVWLRQVDERXWVWUXFWXUDODQGSKRQHPLFDVSHFWVRIDZRUG'HHSHU
OHYHOVRISURFHVVLQJZHUHLQGXFHGE\TXHVWLRQVDERXWWKHFDWHJRU\DZRUGPLJKWEHORQJWR
DQGE\DVNLQJZKHWKHUDZRUG¿WVLQWRDSDUWLFXODUVHQWHQFH%RWKUHFDOODQGUHFRJQLWLRQRIWKH
WDUJHWZRUGVZHUHWHVWHG7KHUHVXOWVVKRZWKDWDGHHSHUOHYHORISURFHVVLQJDVGH¿QHGE\
DQVZHULQJPHDQLQJIXOTXHVWLRQVUHVXOWLQKLJKHUVFRUHVRQERWKUHFDOODQGUHFRJQLWLRQWHVWV
WKDQVKDOORZHUOHYHOVRISURFHVVLQJ
,Q/RFNKDUWDQG&UDLNSUHVHQWHGDUHWURVSHFWLYHUHYLHZRIWKHGHSWKRISURFHVVLQJ
K\SRWKHVLVLQZKLFKWKH\GLVFXVVHGDQXPEHURIFRQFHSWXDOFKDQJHVDQGUH¿QHPHQWVRIWKHLU
LQLWLDOK\SRWKHVLV)LUVWRIDOOWKH\LQGLFDWHGWKDWSURFHVVLQJGRHVQRWQHFHVVDULO\SURFHHGLQ
DVHULDOIDVKLRQRIGLIIHUHQWVWDJHVLWFDQDOVREHSDUDOOHO6HFRQG/RFNKDUWDQG&UDLNPDGH
FOHDUWKDWWKHLURULJLQDOGLVWLQFWLRQEHWZHHQVKDOORZVHQVRU\RUSHUFHSWXDOSURFHVVLQJDQGGHHS
FRQFHSWXDORUVHPDQWLFSURFHVVLQJLVQRWOLPLWHGWROLQJXLVWLFLQIRUPDWLRQRQO\7KLVGLVWLQFWLRQ
FDQDOVREHDSSOLHGWRRWKHUGRPDLQVRUPRGDOLWLHVVXFKDVYLVLRQRUWDVWH7KH\DOVRSURYLGHG
DIXUWKHUH[SOLFDWLRQRIWKHFRQFHSWVRIGHSWKHODERUDWLRQDQGGLVWLQFWLYHQHVV'HSWKUHIHUVWR
³TXDOLWDWLYHO\GLIIHUHQWW\SHVRISURFHVVLQJ´SVXFKDVWKHVKDOORZSURFHVVLQJRIVWUXFWXUDO
DVSHFWV RI ZRUGV RU WKH GHHS SURFHVVLQJ RI WKHLU PHDQLQJ (ODERUDWLRQ LV WKH ULFKQHVV RU
H[WHQVLYHQHVVRISURFHVVLQJZLWKLQRQHOHYHO7KHGLVWLQFWLYHQHVVRIDPHPRU\WUDFHGHWHUPLQHV
ZKHWKHULWLVHDVLO\GLVWLQJXLVKDEOHIURPRWKHUWUDFHV%HFDXVHULFKO\HODERUDWHGPHPRU\WUDFHV
DUH PRUH UHGXQGDQW DQG GLVWLQFWLYH WKDQ LPSRYHULVKHG WUDFHV WKH\ \LHOG EHWWHU UHFDOO DQG
UHFRJQLWLRQ/RFNKDUWDQG&UDLNFRQFOXGHGWKDWDOWKRXJKWKHLURULJLQDOIRUPXODWLRQRIWKH
GHSWKRISURFHVVLQJK\SRWKHVLVKDGFKDQJHGFRQVLGHUDEO\WKHLQÀXHQFHRIGLIIHUHQWW\SHVRI
SURFHVVLQJRQPHPRU\LVQRZZLGHO\DFFHSWHG
%URZQDQG&UDLNGLVFXVVDQXPEHURIIDFWRUVWKDWFRQWULEXWHWRWKHVXFFHVVIXODFTXLVLWLRQ
RIQHZLQIRUPDWLRQ%HVLGHVSRLQWLQJDWLPSRUWDQWIDFWRUVVXFKDVWKHJRDORIWKHOHDUQHUSULRU
NQRZOHGJHDQGW\SHRIPDWHULDOWREHOHDUQHGWKH\DOVRUHIHUWRWKHLPSRUWDQFHRIWKHTXDOLWDWLYH
QDWXUHRIWKHSURFHVVLQJRSHUDWLRQVDSSOLHG,QWKHLUZRUGV³SD\LQJDWWHQWLRQLVQRWDQHQGLQ
LWVHOI´S%URZQDQG&UDLNIXUWKHUUHIHUWRWKHOHYHOVRISURFHVVLQJIUDPHZRUNDQGVWDWH
WKDW SURFHVVLQJ DW D VHPDQWLF RU FRQFHSWXDO OHYHO OHDGV WR EHWWHU UHWHQWLRQ WKDQ SURFHVVLQJ
DW VHQVRU\ OHYHOV (ODERUDWLYH UHKHDUVDO LV PRUH HIIHFWLYH WKDQ PDLQWHQDQFH UHSHWLWLRQ
:LWKUHJDUGWRWKHFRQWHQWWKDWLVSURFHVVHG%URZQDQG&UDLNSRLQWRXWWKDWLWLVLPSRUWDQW
WRSURFHVVIHDWXUHVWKDWDOORZDFRQFHSWZRUGRUFKXQNRILQIRUPDWLRQWREHUHWULHYHGPRUH
HDVLO\7KH\GLVWLQJXLVKEHWZHHQLWHPVSHFL¿FIHDWXUHVZKLFKDUHXQLTXHIRUDVSHFL¿FFRQFHSW
DQGDVVRFLDWLYHIHDWXUHVZKLFKDUHIHDWXUHVVKDUHGZLWKLQIRUPDWLRQIURPSULRUNQRZOHGJHRU
LQIRUPDWLRQVLPXOWDQHRXVO\SUHVHQW3URFHVVLQJERWKW\SHVRIIHDWXUHVZLOOLPSURYHPHPRU\RI
WKHWDUJHWZRUGVRUFRQFHSWV
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 45
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
7KH FRQFHSWV RI HODERUDWLYH UHKHDUVDO DQG WKH SURFHVVLQJ RI IHDWXUHV DUH DOVR VWUHVVHG E\
$QGHUVRQ+HSRLQWVRXWWKDWWKHZD\LQZKLFKWKHVWXG\PDWHULDOLVSURFHVVHGGHWHUPLQHV
ZKHWKHUVRPHWKLQJLVUHPHPEHUHGRUQRW+HUHIHUVWRWKLVDVµHODERUDWLYHSURFHVVLQJ¶ZKLFK
KHGH¿QHVDV³HPEHOOLVKLQJDWREHUHPHPEHUHGLWHPZLWKDGGLWLRQDOLQIRUPDWLRQ´S7KLV
VKRXOG UHVXOW LQ EHWWHU PHPRU\ EHFDXVH WKH HODERUDWLRQV FRQVWUDLQ WKH WREHUHPHPEHUHG
LWHP
7RFRQFOXGH¿QGLQJVIURPFRJQLWLYHSV\FKRORJ\VXSSRUWWKHQRWLRQWKDWWKHW\SHRISURFHVVLQJ
WKHVXEMHFWVDUHHQJDJHGLQLQÀXHQFHVUHWHQWLRQDQGUHFDOORILQIRUPDWLRQ&UDLNDQG/RFNKDUW
&UDLN DQG 7XOYLQJ %DGGHOH\ DQG $QGHUVRQ DOO DUJXH WKDW
PHDQLQJIXOFRQFHSWXDORUVHPDQWLFSURFHVVLQJOHDGVWRHQKDQFHGPHPRU\SHUIRUPDQFHDV
RSSRVHGWRVHQVRU\RUSHUFHSWXDOSURFHVVLQJ)XUWKHUPRUHPHQWDODFWLRQVWKDW\LHOGHODERUDWH
PHPRU\ WUDFHV DUH PRUH HIIHFWLYH %HFDXVH ULFKO\ HODERUDWHG PHPRU\ WUDFHV DUH PRUH
UHGXQGDQWDQGGLVWLQFWLYHWKDQLPSRYHULVKHGWUDFHVWKH\\LHOGEHWWHUUHFDOODQGUHFRJQLWLRQ
+RZHYHUDQXPEHURITXHVWLRQVUHPDLQ:KDWFRQVWLWXWHVDQHODERUDWHPHPRU\WUDFH":KDW
DFFRXQWVIRUWKHUHODWLRQEHWZHHQPHPRU\WUDFHVDQGHDVHRIDFWLYDWLRQ":KDWW\SHRIPHQWDO
DFWLRQV\LHOGPHPRU\WUDFHVWKDWFDQEHHDVLO\DFWLYDWHGLQUHDOWLPHODQJXDJHXVH",QRUGHU
WRH[SORUHWKHVHTXHVWLRQVZHVKDOOQRZFRQVLGHUWKHOLWHUDWXUHRQFRQQHFWLRQLVWPRGHOVRI
VHFRQGODQJXDJHDFTXLVLWLRQ
0HQWDODFWLRQVLQFRQQHFWLRQLVP
$ERYHZH KDYHGHVFULEHG KRZPHQWDODFWLRQV RSHUDWHLQZRUNLQJ PHPRU\DQGKRZWKHVH
DFWLYLWLHV OHDYH WUDFHV LQ ORQJWHUP PHPRU\ $FFRUGLQJ WR UHFHQW QHXURORJLFDO UHVHDUFK
NQRZOHGJHLVUHSUHVHQWHGLQWKHKXPDQEUDLQDVDSDWWHUQRUQHWZRUNRIQHXURQVHJ$QGHUVRQ
*D]]DQLJD ,YU\ 0DQJXQ 0DUNRZLWVFK 7KH FRQFHSW RI NQRZOHGJH
UHSUHVHQWDWLRQDVDSDWWHUQRUQHWZRUNKDVEHHQH[SUHVVHGLQFRJQLWLYHSV\FKRORJ\VLQFHWKH
¶VHJ5XPHOKDUW2UWRQ\,WLVDOVRUHÀHFWHGLQWKHOLWHUDWXUHRQFRQQHFWLRQLVW
PRGHOVRIVHFRQGODQJXDJHDFTXLVLWLRQHJ%URHGHU3OXQNHWW1(OOLV*DVVHU
7KHEDVLF¿QGLQJLVWKDWLQIRUPDWLRQLQWKHIRUPRIFRQFHSWVRUNQRZOHGJHLVQRWVWRUHG
DVDEOXHSULQW$VLQJOHQHXURQFDQQRWHQFRGHNQRZOHGJH,QVWHDGNQRZOHGJHLVUHSUHVHQWHG
E\DSDWWHUQRIQHXUDODFWLYLW\7KLVSDWWHUQLVWHPSRUDU\:KDWLVVWRUHGDUHWKHFRQQHFWLRQV
DPRQJWKHQHXURQVWKDWDOORZDSDWWHUQWREHUHSURGXFHGRUUHFUHDWHG7KHVHFRQQHFWLRQVDUH
WKHVRFDOOHGPHPRU\WUDFHV,WLVDSDWWHUQRIQHXUDODFWLYLW\RYHUDODUJHDPRXQWRIQHXURQVLH
DPHPRU\WUDFHRUFRQQHFWLRQWKDWDOORZVWKHVHFRQFHSWVWREHUHSURGXFHG$FKDUDFWHULVWLFRI
WKLVSDWWHUQRIQHXUDODFWLYLW\LVGLVWULEXWHGUHSUHVHQWDWLRQ$QGHUVRQ0F&OHOODQG
(DFK QHXURQ RU SDWWHUQ RI QHXURQV FDQ SDUWLFLSDWH LQ WKH UHSUHVHQWDWLRQ RI PDQ\ GLIIHUHQW
FRQFHSWV,QFRJQLWLYHSV\FKRORJ\WKLVSKHQRPHQRQRIOHYHOVLVSUHVHQWLQVFKHPDV%DGGHOH\
6FKHPDVUHSUHVHQWRXUZRUOGNQRZOHGJHDQGSHUVRQDOH[SHULHQFHDWGLIIHUHQWOHYHOV
&RQQHFWLRQLVWPRGHOVFDQLQFOXGHLQIRUPDWLRQDWDOOGLIIHUHQWOHYHOV0F&OHOODQG5XPHOKDUW
+LQWRQ
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 46
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
'LIIHUHQW ODEHOV DUH XVHG LQ WKH OLWHUDWXUH WR UHIHU WR WKHVH QHWZRUNV DQG WKH HOHPHQWV WKDW
FRQVWLWXWHWKHP&RJQLWLYHSV\FKRORJ\VSHDNVRISDWWHUQVRIQHXUDODFWLYDWLRQRYHUDQDPRXQW
RIQHXURQV$QGHUVRQ&RQQHFWLRQLVPUHIHUVWRQHWZRUNVZKLFKFRQVLVWRIFRQQHFWLRQV
DPRQJXQLWVURXJKO\FRPSDUDEOHWRQHXURQV%HFKWHO$EUDKDPVHQ%HUHLWHU
%URHGHU 3OXQNHWW *DVVHU ,Q WKLV SDSHU ZH ZLOO XVH WKH WHUPV QHWZRUN DQG
XQLWZKHQZHUHIHUWRWKHFRQQHFWLRQLVWWKHRUHWLFDOIUDPHZRUN:HVXJJHVWWKHWHUPµIHDWXUH¶
IRUDVSHFL¿FFRQQHFWLRQDPRQJXQLWVRULQFRJQLWLYHWHUPLQRORJ\DVSHFL¿FSDWWHUQRIQHXUDO
DFWLYDWLRQRYHUDQDPRXQWRIQHXURQV:HVWKRII,WLVWKLVFRQQHFWLRQEHWZHHQQHXWUDO
QHXURQVWKDWFRQVWLWXWHVPHDQLQJVXFKDVDJUDPPDWLFDOVWUXFWXUHRUYRFDEXODU\LWHP7KHWHUP
IHDWXUHKDVDOVREHHQXVHGHJE\%DGGHOH\/HYHOWDQG*DVVHU
%HIRUHZHUHYLHZWKHOLWHUDWXUHRQWKHDFWLYDWLRQRIWKHVHQHWZRUNVLWLVQHFHVVDU\WRVSHFLI\
WKHHOHPHQWVWKDWFRQVWLWXWHDQHWZRUN%\ZD\RIH[DPSOHZHVKDOOFRQVLGHUWKHIHDWXUHVRID
YRFDEXODU\QHWZRUN'HVFULSWLYHIUDPHZRUNVRIGLIIHUHQWDVSHFWVRIYRFDEXODU\NQRZOHGJHKDYH
EHHQSURSRVHGE\5LFKDUGV/DXIHUDQG1DWLRQ$PRUHH[SODQDWRU\
IUDPHZRUNDERXWDVSHFWVRIZRUGNQRZOHGJHUHODWHGWRWKHPHQWDOOH[LFRQLVRIIHUHGE\/HYHOW
7DNHQ WRJHWKHU WKHUH VHHPV WR EH FRQVHQVXV RQ DW OHDVW WKH IROORZLQJ DVSHFWV RI
YRFDEXODU\NQRZOHGJHIRUPSURQXQFLDWLRQDQGVSHOOLQJPHDQLQJFROORFDWLRQVPRUSKRORJ\
V\QWDFWLFEHKDYLRUFRQVWUDLQWVRQXVHUHJLVWHUIUHTXHQF\SUDJPDWLFDQGDIIHFWLYHIHDWXUHV
+RZHYHUDFFRUGLQJWR$LWFKLVRQNQRZOHGJHRIDZRUGRUFRQFHSWLVEURDGHUWKDQDVSHFWV
WKDWVWULFWO\VSHDNLQJEHORQJWRWKHFDWHJRU\RIOLQJXLVWLFPHDQLQJ([DPSOHVRIRWKHUDVSHFWV
RIZRUGNQRZOHGJHDUHVHQVRU\DVSHFWV:HVWKRIILQIRUPDWLRQIURPWKHQRQOLQJXLVWLF
FRQWH[W&URIW&UXVHDQGHPRWLRQV%HUHLWHU%URHGHU3OXQNHWWVWUHVV
WKHGLIIXVHDQGLQWHUDFWLYHQDWXUHRIDYDULHW\RIGLIIHUHQWXQLWVLPSOLHGLQWKHSURFHVVLQJDQG
DFTXLVLWLRQRIFRQFHSWVDQGODQJXDJH,QFRQQHFWLRQLVWPRGHOVDOOWKHVHGLIIHUHQWW\SHVRIXQLWV
LQWHUDFWVLPXOWDQHRXVO\WRUHSUHVHQWDVSHFL¿FFRQFHSW
3URFHVVLQJ DFTXLVLWLRQ UHSUHVHQWDWLRQ DQG DFWLYDWLRQ DUH FORVHO\ UHODWHG LQ FRQQHFWLRQLVW
PRGHOV0F&OHOODQG5XPHOKDUW+LQWRQ7KLVOHDGVWRDQXPEHURIFODLPVUHJDUGLQJ
KRZ QHZ LQIRUPDWLRQ VKRXOG EH SURFHVVHG LQ RUGHU WR LQFUHDVH LWV UHWHQWLRQ DQG HDVH RI
VXEVHTXHQWDFWLYDWLRQ
&ODLP 1HWZRUNV WKDW FRQVLVW RI PDQ\ GLIIHUHQW W\SHV RI IHDWXUHV KDYH PRUH FKDQFHV RI
EHFRPLQJDFWLYDWHG
:HKDYHDOUHDG\GHVFULEHGWKDWNQRZOHGJHLVUHSUHVHQWHGLQORQJWHUPPHPRU\LQWKHIRUPRI
SDWWHUQVRIQHXUDODFWLYLW\:KHQDQHWZRUNLVDFWLYDWHGWKLVPHDQVWKDWLWLVPDGHDYDLODEOH
WRZRUNLQJPHPRU\$QGHUVRQ1HXURQVLQWHUDFWZLWKHDFKRWKHUWRIRUPDSDWWHUQDQG
GHWHUPLQHHDFKRWKHU¶VOHYHORIDFWLYDWLRQ([FLWDWLRQLVWKHSURFHVVE\ZKLFKQHXURQVLQFUHDVH
WKHDFWLYDWLRQOHYHORIRWKHUQHXURQV,QKLELWLRQRFFXUVZKHQQHXURQVGHFUHDVHWKHDFWLYDWLRQ
RI RWKHU QHXURQV$ QHWZRUN FDQ EH DFWLYDWHG E\ UHFHLYLQJ QHZ VHQVRU\ LQSXW IURP RXWVLGH
RUWKURXJKDVWLPXOXVIURPZLWKLQWKHOHDUQHU5XPHOKDUW,QWKHSUHYLRXVVHFWLRQZH
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 47
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
GHVFULEHG WKDW D IHDWXUH QHWZRUN FRQVLVWV RI PDQ\ GLIIHUHQW W\SHV RI IHDWXUHV IRU H[DPSOH
PRUSKRORJLFDOVHQVRU\RUSUDJPDWLF7KHQHWZRUNFDQEHDFWLYDWHGWKURXJKHDFKRIWKHIHDWXUH
W\SHVWKDWFRQVWLWXWHLW7KHVWLPXOXVWKDWFDXVHVWKHDFWLYDWLRQFDQKDYHGLIIHUHQWPRGDOLWLHV
HJYLVXDODXGLWRU\DQGHPRWLRQDO1(OOLV7KHUHIRUHLWFDQEHFRQFOXGHGWKDWQHWZRUNV
WKDWFRQVLVWRIPDQ\GLIIHUHQWIHDWXUHVKDYHPRUHFKDQFHVRIEHFRPLQJDFWLYDWHG7KLVLVDQ
LPSRUWDQWDUJXPHQWIRUGHVLJQLQJWDVNVZKLFKLQYROYHDZLGHYDULHW\RIFRQWHQWIHDWXUHV
&ODLP 7KHVWUHQJWKRIWKHFRQQHFWLRQVDPRQJWKHIHDWXUHVZLOOEHLQFUHDVHGE\SURFHVVLQJ
IHDWXUHV VLPXOWDQHRXVO\ LQ ZRUNLQJ PHPRU\ 6WURQJ FRQQHFWLRQV UHVXOW LQ D TXLFN
VSUHDGRIDFWLYDWLRQ$QHWZRUNZLWKVXFKFRQQHFWLRQVZLOOEHDFWLYDWHGPRUHHDVLO\
)HDWXUHV DFWLYDWH HDFK RWKHU7KLV SULQFLSOH LV FDOOHG VSUHDGLQJ DFWLYDWLRQ $QGHUVRQ 0F&OHOODQG5XPHOKDUW+LQWRQ$FWLYDWLRQVSUHDGVDORQJWKHIHDWXUHVRUFRQQHFWLRQV
RIDQHWZRUN,WVSUHDGVIURPLQIRUPDWLRQDFWLYDWHGLQZRUNLQJPHPRU\WRQHWZRUNVWKDWDUH
FRQQHFWHGWRWKDWLQIRUPDWLRQDQGVREHFRPHDFWLYDWHGDVZHOO7KHVSHHGRIWKHVSUHDGLQJ
DFWLYDWLRQLVGHWHUPLQHGE\WKHVWUHQJWKRIWKHFRQQHFWLRQV$FWLYDWLRQZLOOVSUHDGPRUHTXLFNO\
WKURXJK QHWZRUNV ZLWK VWURQJO\ LQWHUFRQQHFWHG XQLWV &RQQHFWLRQ VWUHQJWKV DUH HQIRUFHG E\
SURFHVVLQJ IHDWXUHV VLPXOWDQHRXVO\ LQ PHPRU\ %URHGHU 3OXQNHWW 1 (OOLV *DVVHU6WURQJFRQQHFWLRQVDOORZDFRQFHSWRUVWUXFWXUHWREHµUHFUHDWHG¶RUDFWLYDWHG
IDVWHUDQGPRUHHDVLO\
&ODLP )UHTXHQF\RIXVHLQFUHDVHVFRQQHFWLRQVWUHQJWKDQGQHWZRUNVZLWKVWURQJFRQQHFWLRQV
ZLOOEHDFWLYDWHGPRUHHDVLO\
7KHVSHHGDWZKLFKDIHDWXUHQHWZRUNFDQEHPDGHDYDLODEOHWRZRUNLQJPHPRU\LVGHWHUPLQHG
E\LWVOHYHORIDFWLYDWLRQ7KLVLVQRWDSHUPDQHQWVWDWH7ZRIDFWRUVLQÀXHQFHOHYHORIDFWLYDWLRQ
UHFHQF\DQGIUHTXHQF\RIXVH1HWZRUNVWKDWKDYHEHHQDFWLYDWHGUHFHQWO\FDQEHDFWLYDWHG
PRUHHDVLO\RQFHDJDLQ)UHTXHQF\RIXVHLQFUHDVHVWKHVWUHQJWKRIDPHPRU\WUDFHRUWKH
VWUHQJWKRIWKHFRQQHFWLRQV$PHPRU\WUDFHWKDWLVVWURQJHUWKURXJKUHSHDWHGSUDFWLFHFDQEH
DFWLYDWHGPRUHTXLFNO\$QGHUVRQ7KLVLVDQDUJXPHQWIRUWDVNVZKLFKIUHTXHQWO\HOLFLW
PHQWDODFWLRQVRQGLIIHUHQWDVSHFWVRIWKHFRQWHQW
7RVXPXSDQXPEHURIIDFWRUVGHWHUPLQHWKHVSHHGRIDFWLYDWLRQRIIHDWXUHQHWZRUNV$ULFK
IHDWXUHQHWZRUNZKLFKFRQVLVWVRIDYDULHW\RIIHDWXUHVFDQEHDFWLYDWHGPRUHHDVLO\)HDWXUHV
WKDWDUHSURFHVVHGVLPXOWDQHRXVO\ LQZRUNLQJPHPRU\ZLOOEHPRUHFORVHO\ LQWHUUHODWHGDQG
ZLOODFWLYDWHHDFKRWKHUPRUHTXLFNO\1HWZRUNVWKDWDUHXVHGIUHTXHQWO\FDQDOVREHDFWLYDWHG
IDVWHU:HSUHGLFWWKDWWDVNVWKDWHOLFLWPHQWDODFWLRQVDVVSHFL¿HGE\WKHWKUHHDERYHPHQWLRQHG
FODLPVZLOOKDYHDPRUHSRVLWLYHHIIHFWRQUHWHQWLRQDQGHDVHRIDFWLYDWLRQRIQHZODQJXDJH7KLV
FODLPLVHODERUDWHGLQWKHPXOWLIHDWXUHK\SRWKHVLVZKLFKZHGHVFULEHEHORZ
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 48
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
7KHPXOWLIHDWXUHK\SRWKHVLV
7KHPXOWLIHDWXUHK\SRWKHVLVLVEDVHGRQWKHFRJQLWLYHDQGFRQQHFWLRQLVWWKHRUHWLFDOIUDPHZRUN
SUHVHQWHGLQWKLVSDSHU,WWUDQVODWHVLQVLJKWVIURPFRJQLWLYHSV\FKRORJ\DQGFRQQHFWLRQLVPLQWR
JXLGHOLQHVIRUWKHDQDO\VLVDQGGHVLJQRIIRFXVHGWDVNV,WLVH[SHFWHGWKDWUHWHQWLRQDQGHDVH
RIDFWLYDWLRQRIQHZODQJXDJHDUHHQKDQFHGE\WDVNVWKDWHOLFLWPHQWDODFWLRQVLQYROYLQJ
PRUHIHDWXUHVRIWKHYRFDEXODU\LWHPRUODQJXDJHVWUXFWXUH
PRUHGLIIHUHQWFDWHJRULHVRIIHDWXUHV
LQOLIHOLNHFRPELQDWLRQV
VLPXOWDQHRXVO\DQG
LQJUHDWIUHTXHQF\
,WLVSUHGLFWHGWKDWPHQWDODFWLRQVWKDWLQYROYHPRUHDQGPRUHGLIIHUHQWIHDWXUHFDWHJRULHVZLOO
UHVXOWLQQHWZRUNVWKDWFRQVLVWRIPDQ\GLIIHUHQWW\SHVRIIHDWXUHV6XFKULFKQHWZRUNVDUHPRUH
HDVLO\DFWLYDWHGWKDQQHWZRUNVWKDWFRQVLVWRIOHVVRUOHVVGLIIHUHQWIHDWXUHV/LIHOLNHIHDWXUH
FRPELQDWLRQVDUHFRPELQDWLRQVWKDWPRVWIUHTXHQWO\FRRFFXULQWKHLQSXW6LQFHWKHVHRFFXU
PRVWIUHTXHQWO\QHWZRUNVWKDWFRQVLVWRIIUHTXHQWIHDWXUHFRPELQDWLRQVZLOOKDYHPRUHFKDQFHV
RIEHFRPLQJDFWLYDWHG0HQWDODFWLRQVWKDWLQYROYHVLPXOWDQHRXVDQGIUHTXHQWSURFHVVLQJRI
IHDWXUHFRPELQDWLRQVZLOOUHVXOWLQVWURQJHUFRQQHFWLRQVLQDQHWZRUN$VDUHVXOWDFWLYDWLRQ
VSUHDGVIDVWHUDQGQHWZRUNVZLOOEHPRUHHDVLO\DFWLYDWHG
+RZFDQDWDVNHOLFLWPHQWDODFWLRQVLQYROYLQJDZLGHUDQJHRIIUHTXHQWIHDWXUHFRPELQDWLRQV
VLPXOWDQHRXVO\DQGIUHTXHQWO\"7REULHÀ\LOOXVWUDWHWKLVFRQVLGHUWKHWZRIUDJPHQWVRIWKLQN
DORXGSURWRFROVEHORZ7KHVHIUDJPHQWVZHUHWDNHQIURPDVPDOOVFDOHVWXG\RQWKHHIIHFWVRI
GLIIHUHQWWDVNVRQWKHDFTXLVLWLRQRI6SDQLVKYRFDEXODU\DQGLOOXVWUDWHKRZPHQWDODFWLRQVFDQ
LQYROYHPRUHRUOHVVGLIIHUHQWIHDWXUHV7KHSXSLOVZKRDUHDERXWWZHOYH\HDUVROGDUHIURP
D'XWFKVHFRQGDU\VFKRRO,QWKH¿UVWIUDJPHQWOHIWWKHOHDUQHUZDVJLYHQWKHDVVLJQPHQWWR
ZULWHGRZQVFKRROVXEMHFWVLQDWLPHWDEOH7KHVFKRROVXEMHFWVZHUHJLYHQ$FFRUGLQJWRWKH
GH¿QLWLRQE\5(OOLVWKLVZDVQRWDWDVNEHFDXVHWKLVDFWLYLW\FDQEHSHUIRUPHGZLWKRXW
NQRZLQJZKDWWKHZRUGVPHDQ7KHIUDJPHQWVKRZVWKDWWKHSXSLOSURFHVVHVPDLQO\VWUXFWXUDO
IHDWXUHV VXFK DV VSHOOLQJ DQG SURQXQFLDWLRQ7KH VHFRQG IUDJPHQW ULJKW VKRZV WKH WKLQN
DORXGSURWRFRORIDSXSLOZKRLVGHFLGLQJZKLFKVFKRROVXEMHFWVDUHXVHIXOIRUDFDEGULYHU7KH
DVVLJQPHQWZDVWRFKRRVHXVHIXOVFKRROVXEMHFWVIRUDQXPEHURISURIHVVLRQV
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 49
0DFKWHOG/,0RRQHQ5LFNGH*UDDII*HUDUG-:HVWKRII
7DEOH 7KLQNDORXGSURWRFROVWDNHQIURPDVPDOOVFDOHVWXG\RQWKHHIIHFWVRIWDVNVRQWKH
DFTXLVLWLRQRI6SDQLVKYRFDEXODU\
)UDJPHQW
)UDJPHQW
(KOHW¶VVHHZKDW¶VVWLOOOHIWSK\VLFV¿ItVLFDRUVRPH
WKLQJOLNHWKDWRQPLpUFROHV,GRSK\VLFVItVLFDDQG,
GR SK\VLFV RQFH PRUH RQ MXHYHV LQ DQ\ FDVH MXHYH
ZKDW ZDV LW OLNH" -XHYHV WKHQ , GR LW IURP WR ,
GRRQFHPRUHSK\VLFVDQGWKHQ,¶YHJRWRQO\RQHOHIW
JHRJUDSK\JHRJUDItD,SXWWKDWRQMXHYHVWKHWKDQG
WKKRXU
(WKLFVRUJHRJUDSK\JHRJUDSK\WKDWLVPRUHVXLWDEOH
IRUDFDEGULYHUPDWKHPDWLFVQRDFDEGULYHUGRHVKDYH
WRKH¶VJRWDPHWHUPDWKHPDWLFVVKRXOGEHWKHUHEH
FDXVH WKH\ DOVR KDYH WR UHWXUQ FKDQJH WKH\ KDYH WR
EHDEOHWRFRXQWRKQRQRZ,ZULWHLWGRZQLQ'XWFK
PDWHPiWLFDV RU VRPHWKLQJ OLNH WKDW *HRJUDSK\ DOVR
EHORQJVWRFDEGULYHURUQRW,¶PQRWVXUHDQ\PRUHJH
RJUDItD
7KH SURWRFRO VKRZV WKDW WKH PHQWDO DFWLRQ LQ WKH VHFRQG IUDJPHQW LQYROYHV PRUH IHDWXUHV
WKDQMXVWVSHOOLQJDQGSURQXQFLDWLRQ7KHPHQWDODFWLRQLQYROYHVVHPDQWLFPHDQLQJDQGDOVR
DFWLYDWHVWKHSXSLO¶VEURDGHUVFKHPDZLWKUHJDUGWRFDEGULYHUV7KHFRPELQDWLRQRIJHRJUDSK\
DQGPDWKHPDWLFVLVDOLIHOLNHDQGXVHIXORQHLQYLHZRIDFDEGULYHU¶VMREGHVFULSWLRQ7KHVH
IUDJPHQWVVKRZRQDVPDOOVFDOHKRZDVVLJQPHQWVFDQHOLFLWPHQWDODFWLRQVWKDWLQYROYHPRUH
RUOHVVIHDWXUHVPRUHRUOHVVIUHTXHQWO\DQGVLPXOWDQHRXVO\
,PSOLFDWLRQVIRUUHVHDUFK
7KHPXOWLIHDWXUHK\SRWKHVLVHQWDLOVDQXPEHURILPSOLFDWLRQVIRUWKHVWXG\RIWDVNV5HVHDUFK
VKRXOG EH GLUHFWHG DW HVWDEOLVKLQJ ZKHWKHU WKHUH DUH GLIIHUHQFHV LQ UHWHQWLRQ DQG HDVH RI
DFWLYDWLRQEHWZHHQWDVNVWKDWHOLFLWPHQWDODFWLRQVRQPRUHRUOHVVGLIIHUHQWIHDWXUHFDWHJRULHV
,WLVSUHGLFWHGWKDWLPSRYHULVKHGWDVNVZKLFKHOLFLWPHQWDODFWLRQVRQRQO\DIHZIHDWXUHVZLOO
UHVXOWLQOHVVUHWHQWLRQDQGHDVHRIDFWLYDWLRQWKDQULFKWDVNVZKLFKLQYROYHPRUHIHDWXUHV$Q
LPSRUWDQWSUHUHTXLVLWHRIDQ\UHVHDUFKWKDWDWWHPSWVWRVWXG\WKHGLIIHUHQWLDOHIIHFWVRIGLIIHUHQW
W\SHVRISURFHVVLQJLVWRHVWDEOLVKZKHWKHUWKHVHSURFHVVHVDFWXDOO\WDNHSODFHLQWKHFRXUVH
RIWDVNSHUIRUPDQFH'RHVDWDVNUHDOO\HOLFLWPHQWDODFWLRQVZKLFKLQYROYHGLIIHUHQWW\SHVRI
IHDWXUHV" :H DUJXH WKDW LQ WKLV W\SH RI UHVHDUFK LW LV LPSRUWDQW WR IRFXV RQ ERWK OHDUQLQJ
SURFHVVHVDQGOHDUQLQJRXWFRPHV7KHOHDUQLQJSURFHVVHVGXULQJWDVNSHUIRUPDQFHPLJKWEH
VWXGLHGZLWKWKLQN±DORXGSURWRFROVDQGUHWURVSHFWLYHLQWHUYLHZV$VVHVVLQJOHDUQLQJRXWFRPHV
GH¿QHGDVUHWHQWLRQDQGHDVHRIDFWLYDWLRQRIYRFDEXODU\DQGODQJXDJHVWUXFWXUHVUHTXLUHV
W\SHV RI WHVWV WKDW PHDVXUH VRPH IRUP RI UHDO WLPH ODQJXDJH XVH7DVNEDVHG DVVHVVPHQW
VKRXOGEHXVHGWRPHDVXUHGLIIHUHQFHVLQHDVHRIDFWLYDWLRQ
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 50
)RFXVHGWDVNVPHQWDODFWLRQVDQGVHFRQGODQJXDJHOHDUQLQJ&RJQLWLYHDQGFRQQHFWLRQLVW
DFFRXQWVRIWDVNHIIHFWLYHQHVV
&RQFOXVLRQ
,Q WKLV SDSHU ZH KDYH DUJXHG WKDW SURSRQHQWV RI WKH WDVNEDVHG DSSURDFK DJUHH RQ WKH
LPSRUWDQFH RI PHQWDO DFWLRQV GXULQJ WDVN SHUIRUPDQFH +RZHYHU WKH WDVNEDVHG DSSURDFK
GRHVQRWVHHPWRSURYLGHLQGHSWKWKHRUHWLFDODFFRXQWVRIWKHOHDUQLQJLPSDFWRIGLIIHUHQWW\SHV
RISURFHVVLQJ:HKDYHDUJXHGWKDWWKLVLVSDUWLFXODUO\VRZLWKUHVSHFWWRWKHDFTXLVLWLRQRIQHZ
OLQJXLVWLFHOHPHQWV:HKDYHSUHVHQWHGDFRQQHFWLRQLVWWKHRUHWLFDOIUDPHZRUNWRHVWLPDWHWKH
HIIHFWLYHQHVVRIIRFXVHGWDVNV$FFRUGLQJWRWKHPXOWLIHDWXUHK\SRWKHVLVUHWHQWLRQDQGHDVHRI
DFWLYDWLRQDUHUHODWHGWRWKHTXDOLW\DQGTXDQWLW\RIPHQWDODFWLRQVRQGLIIHUHQWIHDWXUHVRIDQHZ
OLQJXLVWLFLWHP$WDVNVKRXOGQRWMXVWHOLFLWWKHVHPHQWDODFWLRQVWKH\VKRXOGDOVREHIUHTXHQW
DQGRSHUDWHRQDZLGHUDQJHRIGLIIHUHQWOLIHOLNHIHDWXUHFRPELQDWLRQVLQDVLPXOWDQHRXVZD\
5HVHDUFKVKRXOGIRFXVRQERWKOHDUQLQJSURFHVVHVXVLQJWKLQNDORXGSURWRFROVDQGOHDUQLQJ
RXWFRPHVPHDVXUHGE\WDVNEDVHGDVVHVVPHQW
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 51
5()(5(1&(6
$QGHUVRQ-5&RJQLWLYHSV\FKRORJ\DQGLWVLPSOLFDWLRQVWKHG1HZ<RUN:RUWK
$ULHYLWFK , 0 +DHQHQ - 3 3 &RQQHFWLQJ VRFLRFXOWXUDO WKHRU\ DQG HGXFDWLRQDO
SUDFWLFH*DOSHULQ¶VDSSURDFK(GXFDWLRQDO3V\FKRORJLVW
$LWFKLVRQ-:RUGVLQWKHPLQG$QLQWURGXFWLRQWRWKHPHQWDOOH[LFRQQGHG2[IRUG
&DPEULGJH%ODFNZHOO
%DGGHOH\$+XPDQPHPRU\7KHRU\DQGSUDFWLFH+RYH3V\FKRORJ\3UHVV
%DGGHOH\$:RUNLQJPHPRU\DQGODQJXDJHDQRYHUYLHZ-RXUQDORI&RPPXQLFDWLRQ
'LVRUGHUV
%HFKWHO : $EUDKDPVHQ $ &RQQHFWLRQLVP DQG WKH PLQG SDUDOOHO SURFHVVLQJ
G\QDPLFVDQGHYROXWLRQLQQHWZRUNVQGHG2[IRUG%ODFNZHOO
%HUHLWHU & ,PSOLFDWLRQV RI FRQQHFWLRQLVP IRU WKLQNLQJ DERXW UXOHV (GXFDWLRQDO
5HVHDUFKHU
%UDQVIRUG-'%URZQ$/&RFNLQJ55(GV+RZSHRSOHOHDUQ%UDLQPLQG
H[SHULHQFHDQGVFKRRO:DVKLQJWRQ'&1DWLRQDO$FDGHPLF3UHVV
%UHHQ 0 /HDUQHU FRQWULEXWLRQV WR WDVN GHVLJQ ,Q & &DQGOLQ ' 0XUSK\ (GV
/DQJXDJHOHDUQLQJWDVNVSS/RQGRQ3UHQWLFH+DOO
%URHGHU33OXQNHWW.&RQQHFWLRQLVPDQGVHFRQGODQJXDJHDFTXLVLWLRQ,Q1(OOLV
(G,PSOLFLWDQGH[SOLFLWOHDUQLQJRIODQJXDJHVQGHGSS/RQGRQ6DQ'LHJR
$FDGHPLF3UHVV/LPLWHG
%\JDWH06NHKDQ36ZDLQ05HVHDUFKLQJSHGDJRJLFWDVNV6HFRQGODQJXDJH
OHDUQLQJWHDFKLQJDQGWHVWLQJ+DUORZ3HDUVRQ
%URZQ6&UDLN)(QFRGLQJDQGUHWULHYDORILQIRUPDWLRQ,Q(7XOYLQJ)&UDLN
(GV7KH2[IRUGKDQGERRNRIPHPRU\SS2[IRUG2[IRUG8QLYHUVLW\3UHVV
&KDPRW$2¶0DOOH\0/DQJXDJHOHDUQHUDQGOHDUQLQJVWUDWHJLHV,Q1(OOLV(G
,PSOLFLWDQGH[SOLFLWOHDUQLQJRIODQJXDJHVSS/RQGRQ$FDGHPLF3UHVV
&RZDQ1:RUNLQJPHPRU\FDSDFLW\1HZ<RUN3V\FKRORJ\3UHVV
&UDLN ) /RFNKDUW 5 /HYHOV RI SURFHVVLQJ$ IUDPHZRUN IRU PHPRU\ UHVHDUFK
-RXUQDORI9HUEDO/HDUQLQJDQG9HUEDO%HKDYLRXU
&UDLN ) 7XOYLQJ ( 'HSWK RI SURFHVVLQJ DQG WKH UHWHQWLRQ RI ZRUGV LQ HSLVRGLF
PHPRU\-RXUQDORI([SHULPHQWDO3V\FKRORJ\*HQHUDO
&URIW:&UXVH'&RJQLWLYHOLQJXLVWLFV&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
'ULHVVHQ&+DHQHQ-:HVWKRII*$FULWLFDODQDO\VLVRIIRUHLJQODQJXDJHOHDUQLQJ
WDVNV,Q66HODQGHU07KROH\(GV1HZHGXFDWLRQDOPHGLDDQGWH[WERRNV9ROSS
6WRFNKROP6WRFNKROP,QVWLWXWHRI(GXFDWLRQ3UHVV
'RXJKW\&&RJQLWLYHXQGHUSLQQLQJVRIIRFXVRQIRUP,Q35RELQVRQ(G&RJQLWLRQ
DQGVHFRQGODQJXDJHLQVWUXFWLRQSS&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
(OOLV10HPRU\IRUODQJXDJH,Q35RELQVRQ(G&RJQLWLRQDQGVHFRQGODQJXDJH
LQVWUXFWLRQSS&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
(OOLV 1 &RQVWUXFWLRQV FKXQNLQJ DQG FRQQHFWLRQLVP 7KH HPHUJHQFH RI VHFRQG
ODQJXDJHVWUXFWXUH,Q&'RXJKW\0/RQJ(GV7KHKDQGERRNRI6/$SS
0DOGHQ2[IRUG9LFWRULD%ODFNZHOO
(OOLV57DVNEDVHGODQJXDJHOHDUQLQJDQGWHDFKLQJ2[IRUG2[IRUG8QLYHUVLW\3UHVV
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 52
5()(5(1&(6
*DVVHU0&RQQHFWLRQLVPDQGXQLYHUVDOVRIVHFRQGODQJXDJHDFTXLVLWLRQ6WXGLHVLQ
6HFRQG/DQJXDJH$FTXLVLWLRQ
*D]]DQLJD0,YU\50DQJXQ*&RJQLWLYHQHXURVFLHQFH7KHELRORJ\RIWKHPLQG
1HZ<RUN1RUWRQ
+XOVWLMQ - + /DXIHU % 6RPH HPSLULFDO HYLGHQFH IRU WKH ,QYROYHPHQW /RDG
+\SRWKHVLVLQYRFDEXODU\DFTXLVLWLRQ/DQJXDJH/HDUQLQJ
/DXIHU%:KDW¶VLQDZRUGWKDWPDNHVLWKDUGRUHDV\VRPHLQWUDOH[LFDOIDFWRUVDIIHFWLQJ
WKH OHDUQLQJ RI ZRUGV ,Q 1 6FKPLWW 0 0F&DUWK\ (GV 9RFDEXODU\ 'HVFULSWLRQ
DFTXLVLWLRQDQGSHGDJRJ\SS&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
/DXIHU%+XOVWLMQ-,QFLGHQWDOYRFDEXODU\DFTXLVLWLRQLQDVHFRQGODQJXDJH7KH
FRQVWUXFWRIWDVNLQGXFHGLQYROYHPHQW$SSOLHG/LQJXLVWLFV
/HYHOW:-06SHDNLQJ)URPLQWHQWLRQWRDUWLFXODWLRQ&DPEULGJH0,73UHVV
/LWWOHZRRUG : 7KH WDVNEDVHG DSSURDFK VRPH TXHVWLRQV DQG VXJJHVWLRQV (/7
-RXUQDO
/RFNKDUW 5 &UDLN ) /HYHOV RI SURFHVVLQJ D UHWURVSHFWLYH FRPPHQWDU\ RQ D
IUDPHZRUNIRUPHPRU\UHVHDUFK&DQDGLDQ-RXUQDORI3V\FKRORJ\
0DUNRYLWVFK+1HXURDQDWRP\RIPHPRU\,Q(7XOYLQJ)&UDLN(GV7KH2[IRUG
KDQGERRNRIPHPRU\SS2[IRUG2[IRUG8QLYHUVLW\3UHVV
0F&OHOODQG-&RQQHFWLRQLVWPRGHOVRIPHPRU\,Q(7XOYLQJ)&UDLN(GV7KH
2[IRUGKDQGERRNRIPHPRU\SS2[IRUG2[IRUG8QLYHUVLW\3UHVV
0F&OHOODQG-5XPHOKDUW'+LQWRQ*7KHDSSHDORISDUDOOHOGLVWULEXWHGSURFHVVLQJ
,Q'5XPHOKDUW-0F&OHOODQG(GV3DUDOOHOGLVWULEXWHGSURFHVVLQJ([SORUDWLRQVLQWKH
PLFURVWUXFWXUHRIFRJQLWLRQ9RO)RXQGDWLRQVSS/RQGRQ0,73UHVV
1DWLRQ,637HDFKLQJDQGOHDUQLQJYRFDEXODU\0DVVDFKXVHWWV+HLQOH+HLQOH
1DWLRQ , 6 3 /HDUQLQJ YRFDEXODU\ LQ DQRWKHU ODQJXDJH &DPEULGJH &DPEULGJH
8QLYHUVLW\3UHVV
1XQDQ'7DVNEDVHGODQJXDJHWHDFKLQJ&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
3LHQHPDQQ0/DQJXDJHSURFHVVLQJDQGVHFRQGODQJXDJHGHYHORSPHQWSURFHVVDELOLW\
WKHRU\$PVWHUGDP-RKQ%HQMDPLQV
5LFKDUGV-7KHUROHRIYRFDEXODU\WHDFKLQJ7(62/4XDUWHUO\
5LFKDUGV-&5RGJHUV76$SSURDFKHVDQGPHWKRGVLQODQJXDJHWHDFKLQJWK
HG&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
5XPHOKDUW'7KHDUFKLWHFWXUHRIPLQGDFRQQHFWLRQLVWDSSURDFK,Q03RVQHU(G
)RXQGDWLRQVRIFRJQLWLYHVFLHQFHSS/RQGRQ0,73UHVV
5RELQVRQ 3 7DVN FRPSOH[LW\ FRJQLWLYH UHVRXUFHV DQG V\OODEXV GHVLJQ D WULDGLF
IUDPHZRUN IRU H[DPLQLQJ WDVN LQÀXHQFHV RQ 6/$ ,Q 3 5RELQVRQ (G &RJQLWLRQ DQG
VHFRQGODQJXDJHLQVWUXFWLRQSS&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
5RELQVRQ 3 &RJQLWLYH FRPSOH[LW\ DQG WDVN VHTXHQFLQJ 6WXGLHV LQ D FRPSRQHQWLDO
IUDPHZRUNIRUVHFRQGODQJXDJHWDVNGHVLJQ,5$/,QWHUQDWLRQDOUHYLHZRIDSSOLHGOLQJXLVWLFV
LQODQJXDJHWHDFKLQJ
5XPHOKDUW'2UWRQ\$7KHUHSUHVHQWDWLRQRINQRZOHGJHLQPHPRU\,Q5$QGHUVRQ
56SLUR:0RQWDJXH(GV6FKRROLQJDQGWKHDFTXLVLWLRQRINQRZOHGJHSS
DD 9549-06_ITL_152_01crc
03-11-2006
09:59
Pagina 53
5()(5(1&(6
1HZ-HUVH\/DZUHQFH(UOEDXP
6FKPLGW5$WWHQWLRQ,Q35RELQVRQ(G&RJQLWLRQDQGVHFRQGODQJXDJHLQVWUXFWLRQ
SS&DPEULGJH&DPEULGJH8QLYHUVLW\3UHVV
6NHKDQ 3 $ FRJQLWLYH DSSURDFK WR ODQJXDJH OHDUQLQJ 2[IRUG 2[IRUG 8QLYHUVLW\
3UHVV
6NHKDQ37DVNEDVHGLQVWUXFWLRQ/DQJXDJH7HDFKLQJ
6ZDQ 0 /HJLVODWLRQ E\ K\SRWKHVLV 7KH FDVH RI 7DVN%DVHG ,QVWUXFWLRQ $SSOLHG
/LQJXLVWLFV
:HVWKRII * 7KH DUW RI SOD\LQJ D SLQEDOO PDFKLQH &KDUDFWHULVWLFV RI HIIHFWLYH 6/$
WDVNV%DE\ORQLDZZZEDE\ORQLDWLFK
:LOOLV-$IUDPHZRUNIRUWDVNEDVHGOHDUQLQJ(VVH[/RQJPDQ
DD
© Copyright 2026 Paperzz