/LQX[$VVHPEO\/DQJXDJH3URJUDPPLQJ
)URQW0DWWHU
7DEOHRI&RQWHQWV
$ERXWWKH$XWKRU
/LQX[$VVHPEO\/DQJXDJH3URJUDPPLQJ
%2%1(9(/1
3XEOLVKHU3UHQWLFH+DOO375
)LUVW(GLWLRQ-XO\
,6%1SDJHV
0DVWHU[DVVHPEO\ODQJXDJHIURPD/LQX[SHUVSHFWLYH
(VVHQWLDOLQIRUPDWLRQIRUFUHDWLQJ/LQX[GHYLFHGULYHUV
+RZ/LQX[ZRUNVXQGHUWKHKRRG
&'520LQFOXGHVHGOLQDVWKH/LQX[[KDQGVRQDVVHPEOHUGHYHORSPHQWVLPXODWRU
/LQX[$VVHPEO\/DQJXDJH3URJUDPPLQJLVWKHILUVW/LQX[FHQWHUHGJXLGHWR[DVVHPEO\
ODQJXDJH
,Q/LQX[$VVHPEO\/DQJXDJH3URJUDPPLQJ%RE1HYHOQH[SODLQVDOOWKHNH\IHDWXUHVRI[
DVVHPEO\ODQJXDJHLQWKHFRQWH[WRIWKH/LQX[RSHUDWLQJV\VWHPDQGWKH&ODQJXDJH7KH
ERRN¶VVWHSE\VWHSRQHFRQFHSWDWDWLPHFRYHUDJHZLOOKHOSDQ\KDUGZDUHSURJUDPPHU
PRYHWR/LQX[DQGPDVWHUHVVHQWLDOVNLOOVIRU/LQX[GHYLFHGULYHUGHYHORSPHQW<RXZRQ¶W
MXVWOHDUQQHZ[DVVHPEO\ODQJXDJHVNLOOV\RX¶OODOVRJDLQSRZHUIXOXQGHUWKHKRRG
LQVLJKWLQWRKRZ/LQX[ZRUNV%RQXV&'520LQFOXGHVHGOLQDVWKH/LQX[EDVHG[
LQWHUDFWLYHDVVHPEOHUGHYHORSPHQWVLPXODWRU7KLVLV/LQX[[DVVHPEO\ODQJXDJH
SURJUDPPLQJIURPVWDUWWRILQLVK
3ODFHKROGLQJQXPHUDWLRQ
/RJLFFLUFXLWV
&RPSXWDWLRQ
7KHIRXUILHOGIRUPDW
0DFKLQHODQJXDJH
0HPRU\
7KHVWDFN
/LQX[XVHUSURJUDPV
1$60
'26SURJUDPV
,QWHUUXSWV
%LWPDQLSXODWLRQV
'HYLFHGULYHUV
$QGPRUH
E\3UHQWLFH+DOO
3XEOLVKHGE\3UHQWLFH+DOO375
3UHQWLFH+DOO,QF
8SSHU6DGGOH5LYHU1-
3UHQWLFH+DOOERRNVDUHZLGHO\XVHGE\FRUSRUDWLRQVDQGJRYHUQPHQWDJHQFLHVIRUWUDLQLQJPDUNHWLQJDQG
UHVDOH
7KHSXEOLVKHURIIHUVGLVFRXQWVRQWKLVERRNZKHQRUGHUHGLQEXONTXDQWLWLHV)RUPRUHLQIRUPDWLRQFRQWDFW
&RUSRUDWH6DOHV'HSDUWPHQW3KRQH)D[(PDLO
FRUSVDOHV#SUHQKDOOFRP
RUZULWH3UHQWLFH+DOO375&RUS6DOHV'HSW2QH/DNH6WUHHW8SSHU6DGGOH5LYHU1-
$OOSURGXFWVRUVHUYLFHVPHQWLRQHGLQWKLVERRNDUHWKHWUDGHPDUNVRUVHUYLFHPDUNVRIWKHLUUHVSHFWLYH
FRPSDQLHVRURUJDQL]DWLRQV6FUHHQVKRWVUHSULQWHGE\SHUPLVVLRQIURP0LFURVRIW&RUSRUDWLRQ
$OOULJKWVUHVHUYHG1RSDUWRIWKLVERRNPD\EHUHSURGXFHGLQDQ\IRUPRUE\DQ\PHDQVZLWKRXW
SHUPLVVLRQLQZULWLQJIURPWKHSXEOLVKHU
3ULQWHGLQWKH8QLWHG6WDWHVRI$PHULFD
3UHQWLFH+DOO,QWHUQDWLRQDO8./LPLWHG/RQGRQ
3UHQWLFH+DOORI$XVWUDOLD3W\/LPLWHG6\GQH\
3UHQWLFH+DOO&DQDGD,QF7RURQWR
3UHQWLFH+DOO+LVSDQRDPHULFDQD6$0H[LFR
3UHQWLFH+DOORI,QGLD3ULYDWH/LPLWHG1HZ'HOKL
3UHQWLFH+DOORI-DSDQ,QF7RN\R
3UHQWLFH+DOO$VLD3WH/WG
(GLWRUD3UHQWLFH+DOOGR%UDVLO/WGD5LRGH-DQHLUR
&UHGLWV
(GLWRULDOSURGXFWLRQVXSHUYLVLRQ
9LQFHQW-DQRVNL
$FTXLVLWLRQVHGLWRU
0LOHV:LOOLDPV
0DUNHWLQJPDQDJHU
.DWH+DUJHWW
0DQXIDFWXULQJPDQDJHU
$OH[LV+H\GW
&RYHUGHVLJQGLUHFWRU
-HUU\9RWWD
&RYHUGHVLJQHU
1LQD6FXGHUL
7KLVERRNLVGHGLFDWHGWRDOOLPSULVRQHG3ORZVKDUHVDFWLYLVWVIRUDWWHPSWLQJWRGRZLWKLURQZKDWDOVRQHHGV
WREHGRQHZLWKVLOLFRQ
/LQX[$VVHPEO\/DQJXDJH3URJUDPPLQJ
35()$&(
,1752'8&7,21
7KH)HWFK([HFXWH&\FOH
7KH/LQX[2SHUDWLQJ6\VWHP
7KH*QX&&RPSLOHU
7KH(GOLQDV$VVHPEOHU
1$60
2WKHU$VVHPEOHUV
3/$&(+2/',1*180(5$7,21
7KH'HFLPDODQG3HQWLPDO6\VWHPV
3HQWLPDO$ULWKPHWLF
&RQYHUVLRQWR3HQWLPDO
7KH%LQDU\6\VWHP
0HPRU\DVD5HFWDQJOHRI%LWV
7KH+H[DGHFLPDO6\VWHP
%DVH'LVWLQJXLVKLQJ1RWDWLRQV
)UDFWLRQVLQ2WKHU%DVHV
&RQYHUWLQJ)UDFWLRQV
/2*,&&,5&8,76$1'&20387$7,21
7KH127*DWH
%RROHDQ2SHUDWRUV
/RJLF*DWHV
$GGLWLRQ&LUFXLWV
6HTXHQWLDO&LUFXLWV
1HJDWLYH1XPEHU5HSUHVHQWDWLRQ
6XEWUDFWLRQ8VLQJ1HJDWLRQ
3ODFHKROGLQJ7ZRV&RPSOHPHQW
0HPRU\&LUFXLWV
[*HQHUDO5HJLVWHUVDQGWKHLU$QFHVWU\
7KH029&RPPDQG
$GGLWLRQDQG6XEWUDFWLRQ&RPPDQGV
0XOWLSOLFDWLRQDQG'LYLVLRQ&RPPDQGV
$66(0%/</$1*8$*(
7KH)RXU)LHOG)RUPDW
&RPSXWHUVIURPWKH&386WDQGSRLQW
6LPSOH$VVHPEO\/DQJXDJH3URJUDPV
$VVHPEOHU3URJUDPVZLWK-XPSV
$VVHPEOHU3URJUDPVZLWK/RRSV
6LJQHG&RPSDULVRQV
8QVLJQHG&RPSDULVRQV
/LQX[VILOHV
0$&+,1(/$1*8$*(
$VVHPEOLQJ6LPSOH3URJUDPV
2SFRGH6SDFH
7KH0RG50%\WH
6SDFH2)«
%LWYV%LW&RGH
7KH%LW5HJLVWHUV
/LQX[)LOHV
0(025<
%\WH'DWD:LGWK
$GGUHVVHVLQ%UDFNHWV
2SHUDQG6L]H$PELJXLW\
/DEHOV
,PPHGLDWH6WRUDJH
7+(67$&.
3XVKDQG3RS2SHUDWLRQV
6XESURJUDPV
3DUDPHWHU3DVVLQJ
5HFXUVLRQ
/,18;86(5352*5$06
0XOWLWDVNLQJ
3DJLQJ
$GGUHVV7UDQVODWLRQ
3URJUDP6HJPHQWV
2WKHU'DWD6HJPHQWV
,23URWHFWLRQ
([HFXWDEOH)LOHVLQ(/))RUPDW
2EMHFW)LOHVLQ(/))RUPDW
,17(558376
3ROOLQJ
([WHUQDO,QWHUUXSWV
,6$$UFKLWHFWXUH
,QWHUQDODQG6RIWZDUH,QWHUUXSWV
6\VWHP&DOOV
3ULYLOHJH/HYHOV
&RQWURO7UDQVIHU
6FKHGXOLQJ
%,70$1,38/$7,216
%LWZLVH/RJLF2SHUDWLRQV
7KH$1'25127DQG;25&RPPDQGV
%LW6HWWLQJDQG7HVWLQJ
6KLIW,QVWUXFWLRQV
'(9,&('5,9(56
'HYLFH,QGHSHQGHQW)LOHV
'HYLFHVDV)LOHV
0RUVH&RGH6SHDNHU'ULYHU
6HULDO3RUW'LJLWL]HU'ULYHU
'26352*5$06
5HDO0RGH6HJPHQWDWLRQ
(GOLQDV(QYLURQPHQW9DULDEOHV
)L[HG0HPRU\$UHDV
5HDO0RGH,QWHUUXSWV
&KHFNLQJ'260HPRU\
/,18;%2277,0(352*5$06
&KDQJLQJWR3URWHFWHG0RGH
3URWHFWHG0RGH6HJPHQWDWLRQ
6HWWLQJ8SWKH*OREDO'HVFULSWRU7DEOH
&ORVLQJ
35()$&(
$VVHPEO\ODQJXDJHLVODQJXDJHZKLFKJLYHVWKHSURJUDPPHUGLUHFWFRQWURORYHUWKHFRPSXWHU7KDWLVZKDW
DSSHDOVWRSHRSOHDERXWDVVHPEO\ODQJXDJH,WLVOLNHXVLQJDVWLFNVKLIW3URJUDPPLQJZLWKRWKHUODQJXDJHV
KLJKOHYHOODQJXDJHVLVOLNHXVLQJDQDXWRPDWLF
0DQ\SHRSOHZKRXVHFRPSXWHUVVLPSO\UXQSURJUDPV7RWKHPDSURJUDPLVDFDQQHGVRIWZDUHSDFNDJH
3HRSOHZKROLNHWRZULWHSURJUDPVOLNHWREHDEOHWRVKDSHWKHEHKDYLRURIWKHPDFKLQHWKHZD\PHWDOVPLWKV
VKDSHPHWDOLQWRXVHIXOPHFKDQLFDOWRROV$PRQJVWDOOWKHSURJUDPVRQDFRPSXWHUWKHUHLVRQHSURJUDP
ZKLFKUXQVWKHPDFKLQHWKHRSHUDWLQJV\VWHP,WFRQWUROVHYHU\WKLQJ,WRIIHUVVHUYLFHVWRWKHRWKHU
SURJUDPV0RVWRSHUDWLQJV\VWHPVIRUFHSURJUDPPHUVWROHDYHWKHLUSURJUDPPLQJVNLOOVEHKLQGDVWKH\
DSSURDFKWKHRSHUDWLQJV\VWHPDQGWRXVHLWDVWKH\ZRXOGDFDQQHGVRIWZDUHSDFNDJH7KDWLVEHFDXVHLWV
VRXUFHFRGHLVDVHFUHW/LQX[SRUWHQGVWKHHQGRIVHFUHWFRGHLQFRPSXWLQJ%HFDXVHWKH/LQX[VRXUFHFRGH
DQGDFRPSLOHUIRULWDUHULJKWWKHUHRQWKHFRPSXWHUDORQJZLWKWKHRWKHUVRXUFHFRGHLWDOORZVSURJUDPPHUV
WRZRUNZLWKWKHRSHUDWLQJV\VWHPDVWKH\GRZLWKSURJUDPVWKH\KDYHZULWWHQ
2SHUDWLQJV\VWHPVZHUHRQFHZULWWHQE\SURJUDPPHUVHPSOR\HGE\FRPSXWHUPDQXIDFWXUHUV5HYROXWLRQVLQ
KDUGZDUHSURGXFHGFRUUHVSRQGLQJUHYROXWLRQVLQWKHVRIWZDUH:KHQ/LQXV7RUYDOGVUHZURWH/LQX[VRWKDWLW
ZRXOGUXQRQWKH$OSKDDUFKLWHFWXUHKLVJRDOZDVQRWWRLQFUHDVHLWVKDUGZDUHEDVHIURPRQHSODWIRUPWR
WZREXWWRPDNH/LQX[SODWIRUPLQGHSHQGHQW7KHVXEVHTXHQWSRUWVRI/LQX[WRHYHU\WKLQJIURPD6SDUFWR
D3RZHU3&GHPRQVWUDWHWKHVXFFHVVRIKLVUHZULWH7KHFKLHIYDOXHRILWLVWKDWLWSURYLGHVXVZLWK
FRQILGHQFHWKDW/LQX[LVKHUHWRVWD\:HGRQWKDYHWRIHDUD3RZHU3&UHYROXWLRQFRPLQJDORQJDQGIRUFLQJ
XVWRGXPSDOORIRXUROGVRIWZDUH
$VVHPEO\FRGHRQWKHRWKHUKDQGLVLQWULQVLFDOO\SODWIRUPGHSHQGHQWDQGLVMXVWLILDEO\UHJDUGHGZLWK
FDXWLRQIRUMXVWWKLVUHDVRQ,WZLOOKDYHWREHUHGRQHZKHQWKHQH[WKDUGZDUHUHYROXWLRQWDNHVSODFH
)XUWKHUPRUHSHRSOHZKRFRPSDUHWKHPDFKLQHODQJXDJHRIWKHZLWKRWKHUPDFKLQHODQJXDJHVERWKUHDO
DQGLGHDOLQHYLWDEO\HQGXSUHJDUGLQJWKHODQJXDJHDVDKLVWRULFDODFFLGHQW2QWKHRWKHUKDQGWKH
JHQHWLFFRGHLVVRPHWLPHVUHIHUUHGWRDVDIUR]HQDFFLGHQW7KHWHUPLVEDVHGRQWKHLGHDWKDWWKHJHQHWLF
FRGHFHDVHGLWVHYROXWLRQZKHQWKHQXPEHURISURWHLQVZKRVHFRGHZRXOGEHEURNHQE\DPXWDWLRQLQWKH
JHQHWLFFRGHEHFDPHVRODUJHWKDWVXFKPXWDWLRQVEHFDPHOHWKDODQGVRWKHFRGHEHFDPHIL[HG,WUHPDLQVWR
EHVHHQZKHWKHUPDFKLQHFRGHKDVEHHQIUR]HQLQWRSODFHE\WKHVL]HRILWVVRIWZDUHEDVH7KHWKUHDW
RID3RZHU3&UHYROXWLRQKDVSDVVHG2QWKHRWKHUKDQGPDQ\/LQX[HQWKXVLDVWVDQWLFLSDWHDQ$OSKD
UHYROXWLRQ
%XWWKH$OSKDUHYROXWLRQKDVQRWKDSSHQHGDQGLWPD\QRWKDSSHQ7KHODQJXDJHKDVEHHQDURXQGIRUD
ORQJWLPH:LWKPDQ\5,6&PDFKLQHVQRZHPXODWLQJWKHDUFKLWHFWXUHLVQWLWWLPHWRFRQVLGHU
SURJUDPPLQJLQDVVHPEO\ODQJXDJH"$VVHPEO\ODQJXDJHLVPRUHZRUNEXWLWKDVLWVDGYDQWDJHV$YHU\
QLFHIHDWXUHRIDVVHPEO\ODQJXDJHFRGHZKLFKLWVKDUHVZLWK/LQX[LWVHOILQFLGHQWDOO\LVWKDWIURPDFUDVV
SHUIRUPDQFHVWDQGSRLQWLWIXQFWLRQVEHDXWLIXOO\5HO\LQJRQFRPSLOHUVWRSURGXFHJRRGFRGHLVXVXDOO\
MXVWLILDEOHDVDWLPHVDYLQJPHDVXUH%XWWRJHWWKHEHVWSRVVLEOHFRGHWKHUHLVVWLOOQREHWWHURSWLRQWKDQWR
XVHDVVHPEO\ODQJXDJH:KHQKLJKOHYHOODQJXDJHVZHUHVWLOODQRYHOW\DQGUHIHUUHGWRDVDXWRPDWLF
SURJUDPPLQJPDQ\SURJUDPPHUVZHUHJUHDWO\RIIHQGHGE\WKHP7KH\ZHUHFRQYLQFHGWKDWQRFRPSLOHU
SURJUDPFRXOGZULWHFRGHDVZHOODVWKH\FRXOG7KH\ZHUHULJKWRIFRXUVH&RPSLOHUVSURGXFHFKHDSHUFRGH
EXWQRWEHWWHUFRGH7RJHWWKHIXOOPHDVXUHRIVSHHGDQGJUDFHWKDWDPDFKLQHLVFDSDEOHRIWKHUHLVQR
VXEVWLWXWHIRUDVVHPEO\ODQJXDJH
)XUWKHUPRUHHYHQLIWKH$OSKDUHYROXWLRQDUULYHVRQVFKHGXOHWRPRUURZWKHUHZLOOUHPDLQLQWKHZRUOG
PLOOLRQVRISURFHVVRUVUXQQLQJDODQJXDJHZKLFKZRUNEHDXWLIXOO\DQGQHHGWREHSXWWRDVRFLDOO\
UHVSRQVLEOHXVH
&RPSXWHUVFDQEHSURJUDPPHGWRUHSRUWRQRXUEX\LQJKDELWVRUWRVHQGRIIQXFOHDUPLVVLOHV%XWWKH\FDQ
DOVREHSURJUDPPHGWRFRPPXQLFDWHZLWKSULYDF\RUWRVXSSRUWPHGLFDOUHVHDUFK$VVLOLFRQVPLWKVRXUMRE
LVWRVKDSHWKHEHKDYLRURIWKHPDFKLQHWRZDUGVDKXPDQDJHQGD
7KLVERRNDVVXPHVWKDWWKHUHDGHUKDVVRPHNQRZOHGJHRI&EXWLWPDNHVQRRWKHUDVVXPSWLRQV
6WDUUHGVHFWLRQVRIWKHERRNDUHQRWQHHGHGVXEVHTXHQWO\DQGPD\EHVNLSSHGZKHQWKH\DUHQRWRILQWULQVLF
LQWHUHVW
,RZHWKDQNVWR'DYH)HOWHUIRUZULWLQJDSDUWLDOVLPXODWRURIWKH7KLVVLPXODWRUJRWPHVWDUWHGZULWLQJ
(GOLQDV
,RZHWKDQNVWR%UXFH*UDQW,W]LFN9DWQLFNDQG.DWH/$UPDQGIRUZRUNLQJZLWKPHRQWKHVFDOH[GHYLFH
GULYHU
,RZHWKDQNVWRWKHPDQ\VWXGHQWVZKRKDYHIRXQGHUURUVLQHDUOLHUGUDIWVRIWKLVERRN,RZHVSHFLDOWKDQNV
WR-RH%LVVHOO6FRWW+DZNLQV-DVRQ.UROO1DQF\<RVKLPXUDDQG-RDQQH<XUFKDNIRUWKHLUFDUHIXO
GHWDLOHGDQGWKRXJKWIXOFULWLWLVP0DQ\HUURUVXQGRXEWHGO\UHPDLQ7RWKRVHUHDGHUVZKRQRWLI\PHRIWKHP
DW
QHYHOQ#FVZLGHQHUHGX
,VKDOOEHJUDWHIXO
/LQX['ULYHQ6HULDO3RUW,QSXW'HYLFH
&KDSWHU,1752'8&7,21
,QWKLVFKDSWHUVRPHQHFHVVDU\WRROVDQGEDFNJURXQGLGHDVDUHUHYLHZHG
7KH)HWFK([HFXWH&\FOH
2QHRIWKHHDUOLHVWHOHFWURQLFFRPSXWHUVZDVWKH(1,$&:KHQLWZDVILUVWEXLOWLWFRXOGQRWVWRUHSURJUDPV
(DFKQHZFRPSXWDWLRQUHTXLUHGPRYLQJSOXJVDQGMXPSHUFDEOHV1RZKRZHYHUQHDUO\DOOFRPSXWHUVVWRUH
SURJUDPV)RUWKHVHFRPSXWHUVGRLQJDFRPSXWDWLRQPHDQVUXQQLQJDSURJUDP7KHSODFHZKHUHWKH
SURJUDPLVVWRUHGLVFDOOHGPHPRU\7KHSDUWRIWKHPDFKLQHZKLFKGRHVWKHFRPSXWDWLRQLVFDOOHGWKH
SURFHVVRU&RPSXWHUSURJUDPVJHQHUDOO\WDNHWKHIRUPRIDOLVWRILQVWUXFWLRQV&RPSXWDWLRQLVSHUIRUPHGE\
WKHSURFHVVRUXVLQJWKHIHWFKH[HFXWHF\FOH7KHIHWFKH[HFXWHF\FOHFRQVLVWVRIDUHSHDWHGSURFHVVWKDW
LQFOXGHVWKHVHVWHSV
6WHS
7KHSURFHVVRUIHWFKHVDQLQVWUXFWLRQIURPPHPRU\
6WHS
7KHSURFHVVRUH[HFXWHVWKHLQVWUXFWLRQ
6WHS
7KHSURFHVVRUF\FOHVEDFNWRVWHS
&RPSXWHUVEDVHGRQWKHIHWFKH[HFXWHF\FOHDUHVRPHWLPHVFDOOHG9RQ1HXPDQQFRPSXWHUV9RQ1HXPDQQ
ZDVDZHOONQRZQPDWKHPDWLFLDQZKRZDVDOVRDQHDUO\FRPSXWHUWKHRULVW
3UREDEO\WKHPRVWLPSRUWDQWH[DPSOHVRIFRPSXWHUVZKLFKDUHQRWEDVHGRQWKHIHWFKH[HFXWHF\FOHDUH
'1$FRPSXWHUVDQGTXDQWXPFRPSXWHUV2IFRXUVHLWPD\EHWKDWWKHVHFRPSXWHUVZLOOUHDFKDSRLQWLQ
WKHLUGHYHORSPHQWZKHQWKH\DUHUHDG\WROHDYHXQLYHUVLW\ODERUDWRULHVDQGWKDWE\WKDWWLPHWKH\WRRZLOO
UXQVWRUHGSURJUDPV
)LJXUH$6WRUHG3URJUDP&RPSXWHU
7KH/LQX[2SHUDWLQJ6\VWHP
0RVWFRPSXWHUVGRQRWVLPSO\UXQRQHSURJUDPDWDWLPH7KH\UXQDSURJUDPUXQQLQJSURJUDPFDOOHGDQ
RSHUDWLQJV\VWHP,WLQWHUDFWVZLWKWKHXVHUDQGPDQDJHVKDUGZDUHGHYLFHVVXFKDVWKHGLVNGULYHVDQG
SULQWHUVDQGUXQVRWKHUSURJUDPV7KHHDUOLHVWRSHUDWLQJV\VWHPVZHUHZULWWHQE\FRPSXWHUYHQGRUV(DFK
FRPSXWHUKDGLWVRZQRSHUDWLQJV\VWHP7KHILUVWYHQGRULQGHSHQGHQWRSHUDWLQJV\VWHPZDVWKH8QL[
RSHUDWLQJV\VWHP,WZDVGHYHORSHGE\DKDQGIXORIUHVHDUFKHUVDW%HOO/DEV
$77WKHSULQFLSDORZQHURI%HOO/DEVVRRQPDGH8QL[DYDLODEOHIRUDQRPLQDOIHHWRDFDGHPLF
LQVWLWXWLRQVZKLFKLQWXUQGHYHORSHG8QL[IXUWKHU7KLVJHQHURXVEHKDYLRURQWKHSDUWRI$77PD\KDYH
EHHQLQIOXHQFHGE\DFRQVHQWGHFUHHHQWHUHGLQZKLFKUHVWULFWHGFRPPHUFLDODFWLYLW\RQWKHSDUWRI
$77EH\RQGIXUQLVKLQJFRPPRQFDUULHUFRPPXQLFDWLRQVVHUYLFHV7KLVGHFUHHZDVWKHUHVXOWRID
FRPSODLQWLQE\WKH-XVWLFH'HSDUWPHQWDJDLQVW:HVWHUQ(OHFWULFDQG$77FODLPLQJWKDWWKH\ZHUH
WU\LQJWROHYHUDJHWKHLUWHOHSKRQHPRQRSRO\LQWRRWKHUVHFWRUV
7KHYHUVLRQRI8QL[GHYHORSHGDWWKH8QLYHUVLW\RI&DOLIRUQLDDW%HUNHOH\EHFDPHYHU\ZLGHO\XVHG,WZDV
GHVLJQHGWREHSRUWDEOHLHHDV\WRWUDQVIHUIURPRQHW\SHRIFRPSXWHUWRDQRWKHU,WLVNQRZQDV%HUNHOH\
8QL[RU%6'8QL[%HUNHOH\6RIWZDUH'LYLVLRQ
/LQX[LVDQRQSURSULHWDU\YDULDQWRI8QL[ZKLFKZDVFUHDWHGE\/LQXV7RUYDOGVRQDEDVHGFRPSXWHU
DQGVXEVHTXHQWO\GHYHORSHGE\DQRQOLQHFRPPXQLW\RIXVHUV$OWKRXJKVHYHUDOQRQ3&YHUVLRQVRI/LQX[
H[LVWPRVWH[LVWLQJLQVWDOODWLRQVRI/LQX[DUHRQ,QWHOFRPSDWLEOHKDUGZDUH
0DQ\XVHUVRI/LQX[KDYH/LQX[LQVWDOOHGDORQJZLWKDQRWKHURSHUDWLQJV\VWHP+DYLQJVHSDUDWHGLVN
SDUWLWLRQVIRU/LQX[DQG:LQGRZV'26LVFRPPRQ
7KH*QX&&RPSLOHU
7KHSRUWDELOLW\RIWKH8QL[RSHUDWLQJV\VWHPZDVSDUWO\DFRQVHTXHQFHRIWKHIDFWWKDWE\LWKDGEHHQ
UHZULWWHQLQDKLJKOHYHOODQJXDJH&7KH&ODQJXDJHZDVLQWXUQGHVLJQHGWREHDSRUWDEOHODQJXDJH
7KHILUVWQRQSURSULHWDU\YHUVLRQRI&ZDVGHYHORSHGE\5LFKDUG6WDOOPDQRIWKH)UHH6RIWZDUH)RXQGDWLRQ
,WVQDPHJQXZKLFKVWDQGVIRU*QXV1RW8QL[SURFODLPVLWVHVFDSHIURPSURSULHWDU\FRS\ULJKW
UHVWULFWLRQV7KHJQX&FRPSLOHULVZLGHO\XVHGQRWRQO\EHFDXVHLWVIUHHEXWEHFDXVHLWKDVVHWDVWDQGDUG
IRUUHOLDELOLW\7KH/LQX[RSHUDWLQJV\VWHPGHSHQGVKHDYLO\RQWKHJQX&FRPSLOHU
$FRPSLOHULVDSURJUDPZKLFKWUDQVODWHVDSURJUDPVXFKDVD&ODQJXDJHSURJUDPLQWRDPDFKLQHFRGH
SURJUDPWKDWFDQEHVWRUHGLQDFRPSXWHUVPHPRU\DQGUXQ$SURJUDPWKDWFDQEHVWRUHGLQPHPRU\DQG
UXQLVFDOOHGDQH[HFXWDEOHILOHRUVRPHWLPHVMXVWDQH[HFXWDEOH
7KHJQX&FRPSLOHUZRUNVLQVWDJHV6HH
)LJXUH
7RFRPSLOHDSURJUDPVXFKDV
SURJF
ZLWKWKHJQX
FRPSLOHURQHFDQHQWHUWKHFRPPDQG
)LJXUH6WDJHVRI*QX&&RPSLODWLRQ
OLQX[ER[JFFSURJF
7KLVFRPPDQGWDNHVWKHWUDQVODWLRQWKURXJKDOOWKHVWDJHVDQGSURGXFHVDQH[HFXWDEOHILOHFDOOHG
DRXW
7R
VWRSDWDQHDUOLHUVWDJHRQHFDQDGGDVZLWFKWRWKHJFFFRPPDQGOLQH)RUH[DPSOHWRSURGXFHDQDVVHPEO\
FRGHILOHWKH
6
VZLWFKXSSHUFDVHLVXVHG(QWHULQJWKHFRPPDQG
OLQX[ER[JFF6SURJF
\LHOGVDQDVVHPEO\ODQJXDJHILOH
SURJV
7RILQLVKWKHFRPSLODWLRQWKH
JFF
FRPPDQGPD\EHXVHGRQ
WKH
V
ILOH
OLQX[ER[JFFSURJV
7KH(GOLQDV$VVHPEOHU
7KHDVVHPEO\ODQJXDJHLQWKH
V
ILOHVSURGXFHGE\WKHJQXFRPSLOHULVGLIIHUHQWIURPWKHZLGHO\XVHG,QWHO
DVVHPEO\ODQJXDJHIRUWKH[SURFHVVRUV(GOLQDVDVVHPEO\ODQJXDJHLVHVVHQWLDOO\WKH,QWHODVVHPEO\
ODQJXDJH,WVREMHFWFRGHILOHVUXQXQGHU[/LQX[(GOLQDVLVDQLQWHUDFWLYHHQYLURQPHQWFRQVLVWLQJRIDQ
HGLWRUDQDVVHPEOHUDQGDVLPXODWRU
(GLWLQJ
6RXUFHFRGHHGLWLQJXVHVFRPPDQGVERUURZHGIURP('/,1D'26HGLWRU$PRQJWKHFRPPDQGVDUHLIRU
LQVHUWGIRUGHOHWHFIRUFKDQJHHIRUH[LWTIRUTXLWDQGKIRUKHOS&RPPDQGVDIIHFWWKHFXUUHQWOLQH
ZKLFKLVWKHOLQHWKDWKDVWKHDVWHULVN7KHDVWHULVNLVPRYHGXVLQJWKHDUURZNH\V(QWHUHGOLQHVDUH
FKHFNHGE\WKHDVVHPEOHUIRUV\QWD[HUURUV
$VVHPEOLQJ
&RGHLVDVVHPEOHGDVLWLVHQWHUHGRUORDGHG$VVHPEO\FRGHDSSHDUVLQWKHGHIDXOWZLQGRZRQWKHULJKWVLGH
RIWKHVFUHHQ$VVHPEOHGFRGHFDQEHVDYHGDWDQ\WLPHXVLQJWKHRFRPPDQG
,QWHUSUHWLQJ
&RGHFDQEHH[HFXWHGHLWKHUIURPDORDGHGSURJUDPRUIURPDFRPPDQGSURPSWEHORZ
7RVWHSWKURXJKOLQHVRIFRGHWKHVSDFHEDULVXVHG7KHOLQHDERXWWREHH[HFXWHGLVGLVSOD\HGLQ\HOORZ,W
LVWKHOLQHSRLQWHGDWE\WKHLQVWUXFWLRQSRLQWHU7KHHQWHUNH\UHVHWVWKHLQVWUXFWLRQSRLQWHUWRWKHFXUUHQW
OLQH,QVWUXFWLRQVFDQWKHUHIRUHEHH[HFXWHGLQDQ\RUGHUE\PRYLQJWKHDVWHULVNDURXQG
7KHHVFDSHNH\EULQJVXSDFXUVRUDWWKHFRPPDQGSURPSWEHORZ&RPPDQGVKHUHDUHH[HFXWHG
LPPHGLDWHO\$QHPSW\FRPPDQGH[LWVWKHFRPPDQGOLQH
7RREVHUYHWKHHIIHFWVRIFRGHH[HFXWLRQYDULRXVDUHDVRIWKHPDFKLQHPD\EHEURXJKWLQWRYLHZLQWKHULJKW
SDQHORIWKHVFUHHQ7KHGLIIHUHQWFKRLFHVIRUWKHFRQWHQWVRIWKHULJKWSDQHOFDQEHF\FOHGWKURXJKXVLQJWKH
WDENH\
7KHOD\RXWRIWKH(GOLQDVVFUHHQZKLFKLVDGDSWHGIURPWKDWRIDQVLPXODWRUZULWWHQE\'DYH)HOWHULV
VKRZQLQ
)LJXUH
)LJXUH7KH(GOLQDV6FUHHQ
(GOLQDVLVD'26SURJUDP('/(;(
'RVHPX
7KH(GOLQDVDVVHPEOHULVD'26SURJUDP,I\RXKDYHDPDFKLQHZKLFKKDVD'26SDUWLWLRQWKHVLPSOHVW
ZD\RIJHWWLQJWR'26LVE\UHERRWLQJ%XWLWLVQRWQHFHVVDULO\WKHPRVWFRQYHQLHQW)XUWKHU\RXUPDFKLQH
PD\QRWKDYHD'26SDUWLWLRQ7KHGRVHPXSURJUDPPDNHVLWSRVVLEOHWRUXQ'26SURJUDPVIURP/LQX[,W
LVDYDLODEOHIURP
ZZZGRVHPXRUJ
7RUXQ(GOLQDVWKH
BJUDSKLFV
YDULDEOHLQ
GRVHPXFRQI
VKRXOGEHVHWWR
1$60
7KH1HWZLGH$VVHPEOHURU1$60LVDQRSHQVRXUFHDVVHPEOHUWKDWUXQVXQGHU/LQX[DVZHOODV'26,WV
XVHLVLQFUHDVLQJDQGKDVPXFKWRUHFRPPHQGLW,QSDUWLFXODUGXHWRLWVZLGHVSUHDGXVHLWKDVEHHQH[SRVHG
WRDYHU\WKRURXJKGHEXJJLQJ,WDOVRDFFHSWVDEURDGHUYRFDEXODU\RIDVVHPEO\ODQJXDJHLQVWUXFWLRQVWKDQ
GRHV(GOLQDV0RVWRIWKHSURJUDPVLQWKLVERRNPD\EHDVVHPEOHGXVLQJHLWKHUDVVHPEOHU(GOLQDVFDQEH
XVHGWRVWHSWKURXJKWKHH[DPSOHSURJUDPVLQWKHWH[WEXWIRUWKHELJJHUSURJUDPVVXFKDVWKHLQWHUUXSW
KDQGOHULQ
FKDSWHU
1$60LVGHILQLWHO\WKHEHWWHUFKRLFH1$60LVDQLQGXVWULDOVWUHQJWKDVVHPEOHU
7RXQSDFNWKHGLVWULEXWLRQZKLFKFRPHVZLWKWKLVERRNXVHWKHFRPPDQG
OLQX[ER[XQ]LSD/QDVPV]LS
DIWHUFRS\LQJLWWRDVXLWDEOHGLUHFWRU\7REXLOGLW\RXFDQWKHQFRS\WKHDSSURSULDWHPDNHILOH
OLQX[ER[FSPDNHILOHXQ[0DNHILOH
DQGUXQ
OLQX[ER[PDNH
2WKHU$VVHPEOHUV
0$60DQG7XUER$VVHPEOHUDUHDVVHPEOHUVWKDWKDYHEHHQYHU\ZLGHO\XVHGLQFRQQHFWLRQZLWK'267KH
IDFWWKDW:LQGRZVLVQRWVRHDV\WRZRUNZLWKXVLQJDVVHPEO\ODQJXDJHKDVOHGWRDGHFUHDVHLQWKH
SRSXODULW\RIWKHVHDVVHPEOHUV0DQ\SHRSOHKDYHWKHLPSUHVVLRQWKDW/LQX[LVQRWSDUWLFXODUO\DVVHPEOHU
IULHQGO\HLWKHU7KLVLPSUHVVLRQLVSDUWO\EDVHGRQWKHYLHZRIDVVHPEO\ODQJXDJHWKDW\RXJHWZRUNLQJZLWK
JFF7KRVHDFFXVWRPHGWR,QWHOV\QWD[PD\XQGHUVWDQGDEO\ILQGWKH$77V\QWD[DZNZDUG:RUVHZKHQ
DVVHPEO\ODQJXDJHLQVWUXFWLRQVDUHLQVHUWHGLQWR&FRGHWKHTXRWDWLRQPDUNVUHTXLUHGE\JFFDQGWKHOLQH
MXPEOLQJWKDWRFFXUVDUHSUHWW\UHSHOOHQW,KRSHWKDWE\
FKDSWHU
UHDGHUVZLOOEHSHUVXDGHGWKDWLQWHUDFWLQJ
ZLWK/LQX[XVLQJDVVHPEO\ODQJXDJHFDQEHFOHDQDQGQHDW
7KHUHDUHDIHZRWKHUDVVHPEOHUVDURXQG$EULHIGLVFXVVLRQRIWKHPFDQEHIRXQGLQDQ$VVHPEO\+2:72
DWWKH/LQX['RFXPHQWDWLRQ3URMHFWV:HEVLWH
ZZZOLQX[GRFRUJ+2:72
)XUWKHU5HDGLQJ
2SHQ6RXUFHV9RLFHVIURPWKH2SHQ6RXUFH5HYROXWLRQ&KULV'L%RQDHWDO25HLOO\
$4XDUWHU&HQWXU\RI8QL[3HWHU6DOXV$GGLVRQ:HVOH\
&KDSWHU3/$&(+2/',1*180(5$7,21
7KH(1,$&GLGQRWXVHWKHELQDU\V\VWHP,WVDULWKPHWLFSURFHVVRUXVHGYDFXXPWXEHVZLUHGWRJHWKHULQWR
ULQJVZKLFKZRUNHGOLNHROGGHVNWRSDGGLQJPDFKLQHZKHHOV7KHVHZHUHEDVHWHQFRQWUDSWLRQV6LQFHWKHQ
KRZHYHUDOOHOHFWURQLFFRPSXWHUVKDYHGRQHWKHLUDULWKPHWLFXVLQJWKHELQDU\V\VWHPEDVHWZR
&RQVHTXHQWO\GHVFULSWLRQVRIFRPSXWHUDULWKPHWLFDUHFXVWRPDULO\H[SUHVVHGXVLQJWKHELQDU\V\VWHPRU
UHODWHGV\VWHPVVXFKDVKH[DGHFLPDOEDVHVL[WHHQRURFWDOEDVHHLJKW$QXQGHUVWDQGLQJRIWKHVHQXPEHU
V\VWHPVLVHVVHQWLDO5HDGHUVDOUHDG\IDPLOLDUZLWKWKHPPD\SUHIHUWRVNLSWKLVFKDSWHU
7KH'HFLPDODQG3HQWLPDO6\VWHPV
%HIRUHWKHLQYHQWLRQRISODFHKROGLQJGHFLPDOQRWDWLRQLQWKH(DVWSUREDEO\LQ,QGLDRU&KLQDV\VWHPVRI
QRWDWLRQEXLOWDURXQGSRZHUVRIWHQZKLFKZHUHQRWSODFHKROGLQJV\VWHPVZHUHFRPPRQ7KHV\VWHPXVHG
E\$UFKLPHGHVIRUH[DPSOHLVVKRZQLQ
7DEOH
,QWKLVV\VWHP63$UHSUHVHQWVWKHQXPEHU*UHHN
OHWWHUVRIFRXUVHQRW/DWLQOHWWHUVZHUHXVHG7KHPRVWDSSDUHQWGLVDGYDQWDJHRIWKLVNLQGRIV\VWHPLV
FRPSXWDWLRQDO7KHQRWDWLRQLVQRKHOSDWDOOLQVHHLQJWKDW
7DEOH1RQ3ODFHKROGLQJ'HFLPDO6\VWHP
$
-
6
%
.
7
&
/
8
'
0
9
(
1
:
)
2
*
3
DQGDOOUHSUHVHQWHVVHQWLDOO\WKHVDPHEDVLFIDFW%XWWKLVLVRQO\DSUREOHPZKHQQRWDWLRQVWKHPVHOYHVDUH
XVHGWRGRFDOFXODWLRQVDVZHGRZLWKSHQFLODQGSDSHU:KHQFDOFXODWLRQVDUHGRQHZLWKSK\VLFDOWRNHQV
VXFKDVEHDGVRQDQDEDFXVRUZLWKSHEEOHVWKLVLVQRORQJHUDSUREOHP,QIDFWWKLVNLQGRIQRWDWLRQPD\
KDYHVHUYHGWRSUHYHQWUHDGLQJHUURUV$Q\RQHZKRKDVUHFHLYHGZKHQFDVKLQJDFKHFNZLOO
XQGHUVWDQGWKLVSRLQW
%XWZKHQWKHQRWDWLRQVWKHPVHOYHVDUHXVHGWRGRWKHFDOFXODWLRQVLWLVEHWWHUWRKDYHDQRWDWLRQDOV\VWHP
ZKLFKEULQJVRXWVXFKEDVLFVLPLODULWLHVDVWKHIROORZLQJ
3ODFHKROGLQJV\VWHPVGRWKLV3ODFHKROGLQJQXPHUDOVVRPHWLPHVOHVVV\PSDWKHWLFDOO\UHIHUUHGWRDV
KHDWKHQF\SKHUVZHUHSRSXODUL]HGLQ(XURSHDURXQGWKH\HDUE\/HRQDUGRRI3LVDDOVRNQRZQDV
)LERQDFFL)LERQDFFLZDVSUHVXPDEO\UHO\LQJRQDZRUNZULWWHQLQ$UDELFE\DO.KZkUL]PLZKRVHQDPHZH
VHHLQWKHZRUGDOJRULWKPDURXQGWKH\HDULQ%DJKGDG/LNHDOO(XURSHDQVFKRODUVRIWKHGD\)LERQDFFL
ZDVQHFHVVDULO\YHUVHGLQ$UDELF
$OOWKHQXPHUDWLRQV\VWHPVGLVFXVVHGLQWKLVERRNLQFOXGLQJWKHGHFLPDOV\VWHPZHXVHHYHU\GD\DUH
SODFHKROGLQJV\VWHPV%HIRUHSURFHHGLQJWRQRQGHFLPDOV\VWHPVOHWXVFRQVLGHUWKHUROHWKDWEDVHWHQSOD\V
LQWKH86PRQHWDU\V\VWHP
3XUHO\'HFLPDO0RQH\
7KHFXUUHQW86PRQHWDU\V\VWHPZDVDGRSWHGIROORZLQJWKHLQWURGXFWLRQRIWKHPHWULFV\VWHPLQ)UDQFHLQ
WKH5HYROXWLRQRI7KHSXUSRVHRIERWKRIWKHVHH[WHQVLRQVRIWKHGHFLPDOV\VWHPZDVWRVLPSOLI\
FDOFXODWLRQVE\EULQJLQJPRQHWDU\DQGPHDVXUHPHQWXQLWVLQWRKDUPRQ\ZLWKWKHGHFLPDOV\VWHPXVHGWR
UHSUHVHQWQXPEHUV
7REULQJWKHDOLJQPHQWRIWKHPRQHWDU\DQGQXPHUDOV\VWHPVLQWRVKDUSUHOLHIOHWXVLPDJLQHDSDUHGGRZQ
YHUVLRQRIWKH86PRQHWDU\V\VWHPWKDWLQFOXGHVRQO\SHQQLHVGLPHVELOOVGROODUELOOVGROODU
ELOOVGROODUELOOVDQGVRRQ
GLPH SHQQLHV
GROODUELOO GLPHV
SHQQLHV
WHQGROODUELOO GROODUELOOV
GLPHV
SHQQLHV
DQGVRRQ
,QWKLVSXUHO\GHFLPDOPRQHWDU\V\VWHPHDFKGHQRPLQDWLRQH[FHSWSHQQLHVLVZRUWKH[DFWO\WHQWLPHVWKH
QH[WVPDOOHUXQLW'HQRPLQDWLRQVFRUUHVSRQGWRSODFHYDOXHVLQWKHEDVHWHQQXPHUDWLRQV\VWHPDQGYLFH
YHUVD3HQQLHVDUHRQHVGLPHVDUHWHQVGROODUVDUHKXQGUHGVHWF
7RFDUU\H[DFWFKDQJHIRUDQ\SRVVLEOHWUDQVDFWLRQLQWKLVEDUHERQHVPRQHWDU\V\VWHPRQHZRXOGQHHGQLQH
LWHPVRIHDFKGHQRPLQDWLRQ)RUH[DPSOHWRPDNHDSXUFKDVHZKRVHFRVWZDVRUFHQWVZRXOG
UHTXLUHWHQGROODUELOOVGROODUELOOVGLPHVDQGSHQQLHV
,IZHDFWXDOO\XVHGWKLVV\VWHPRXUFKDQJHSXUVHVZRXOGQHHGWREHEXONLHUWKDQWKH\DUH7KHH[LVWHQFHRI
+
4
,
5
QLFNHOVTXDUWHUVHWFUHGXFHVWKHDPRXQWRIFKDQJHZHPXVWFDUU\7RJHWDOHVVEXON\V\VWHPZKLFKZDV
QRQHWKHOHVVEDVHGRQVLPSOHPXOWLSOHVZHFRXOGLPDJLQHDV\VWHPEDVHGRQILYHVLQVWHDGRIWHQV
3HQWLPDO0RQH\
6XSSRVHZHLPDJLQHDPRQHWDU\V\VWHPZKRVHGHQRPLQDWLRQVDUHSHQQLHVQLFNHOVTXDUWHUVELOOV
ELOOVDQGVRRQ,QWKLVV\VWHPWKHYDOXHRIHDFKGHQRPLQDWLRQH[FHSWSHQQLHVLVH[DFWO\ILYHWLPHVWKH
YDOXHRIWKHQH[WVPDOOHUGHQRPLQDWLRQ/HWVFDOOFHQWVD%LJ'ROODUDQGLPDJLQHWKDWWKHFXUUHQF\IRU
LWLVDELOOZLWKDELJRQLW
QLFNHO SHQQLHV
TXDUWHU QLFNHOV
SHQQLHV
%LJ'ROODU TXDUWHUV
QLFNHOV
SHQQLHV
DQGVRRQ
7REHSUHSDUHGWRFDUU\RXWDQ\WUDQVDFWLRQLQWKLVV\VWHPZHZRXOGQHHGWRFDUU\RQO\IRXULWHPVRIHDFK
XQLW7KLVZRXOGFUHDWHOHVVEXONLQRXUFKDQJHSXUVHV%XWORRNZKDWZRXOGKDSSHQWRWKHDULWKPHWLF7R
PDNHDSXUFKDVHRIZRXOGUHTXLUH
RQHELOO
IRXUELOOV
]HURELOOV
WZRTXDUWHUV
]HURQLFNHOV
WKUHHSHQQLHV
7KLVDULWKPHWLFLVQRORQJHUWUDQVSDUHQWO\REYLRXVDVLWLVZKHQZHKDYHGHFLPDOPRQH\7KLVLVWUXHGHVSLWH
WKHIDFWWKDWWKLVSHQWLPDOPRQHWDU\V\VWHPLVMXVWDVVLPSOHDVWKHGHFLPDOPRQHWDU\V\VWHP7KHGHFLPDO
PRQHWDU\V\VWHPDSSHDUVWREHVLPSOHUEHFDXVHLWPDWFKHVRXUGHFLPDOQXPHUDWLRQV\VWHP+RZHYHULIZH
XVHGDSHQWLPDOQXPHUDWLRQV\VWHPDVZHOODVSHQWLPDOPRQH\V\VWHPVLPSOLFLW\ZRXOGUHWXUQ(YHU\
PRQHWDU\XQLWZRXOGFRUUHVSRQGWRDSODFHYDOXHLQWKHSHQWLPDOQXPHUDWLRQV\VWHPDQGYLFHYHUVD
3HQWLPDO1XPHUDOV
7KHSODFHYDOXHVLQWKHSHQWLPDOQXPHUDOV\VWHPDUHRQHILYHWZHQW\ILYHRQHKXQGUHGWZHQW\ILYHHWF
(DFKYDOXHLVZRUWKILYHRIWKHQH[WVPDOOHU
$Q\QXPEHUFDQEHUHSUHVHQWHGXVLQJDWPRVWIRXURIDQ\RQHSODFHYDOXH6RWKHGLJLWVDQGDUH
QRWXVHG$OOQXPEHUVDUHUHSUHVHQWHGXVLQJRQO\WKHQXPHUDOVDQG
7KHSHQWLPDOLVWKHVDPHDVWKHRUGLQDU\GHFLPDO,WPHDQVILYHVDQGRQHVOLNHQLFNHOVDQG
SHQQLHV6LPLODUO\LVWKHVDPHDVLQEDVHWHQ,QFHQWVLWPHDQVTXDUWHUQLFNHOVDQGSHQQLHV
&RXQWLQJJRHVOLNHWKLV
DQGVRRQ8VLQJSHQWLPDOQXPHUDWLRQWRGHVFULEHSHQWLPDOPRQH\ZH
JHWWKLVWDEOH
QLFNHO SHQQLHV ILYH
TXDUWHU QLFNHOV
SHQQLHV WZHQW\ILYH
%LJ'ROODU TXDUWHUV
QLFNHOV
SHQQLHV RQHKXQGUHGWZHQW\ILYH
3HQWLPDO$ULWKPHWLF
*LYHQDEDVHILYHDULWKPHWLFSUREOHP
ZHKDYHDFKRLFHRIPHWKRGV:HFDQFRQYHUWWKHVHQXPEHUVLQWREDVHWHQGRWKHDULWKPHWLFDQGWKHQ
FRQYHUWEDFNWREDVHILYH2UZHFDQGRWKHSUREOHPZLWKRXWDQ\FRQYHUVLRQVXVLQJWKHQDWLYHDULWKPHWLF
7KHILUVWPHWKRGLVHDVLHUDWILUVWVLQFHZHDUHXVHGWREDVHWHQ7KLQNLQJLQWHUPVRIPRQHWDU\XQLWVLV
IRXUTXDUWHUVWZRQLFNHOVDQGWKUHHSHQQLHVLHFHQWVLQRUGLQDU\EDVHWHQ6LPLODUO\LVFHQWVLQ
RUGLQDU\EDVHWHQ6RZHFDQGRWKHDGGLWLRQXVLQJRUGLQDU\EDVHWHQDULWKPHWLF
2QHKXQGUHGWKLUWHHQSOXVLVRU7RFRQYHUWEDFNVWDUWE\WDNLQJRXWRQHELJGROODUDGROODU
DQGDTXDUWHUDQGZHKDYHFHQWVOHIW7KLVLVWKUHHTXDUWHUVRQHQLFNHODQGWZRSHQQLHV6RWKHDQVZHULV
7DEOH3HQWLPDO6\VWHP3ODFH9DOXHV
V
V
V
3HQWLPDO
'HFLPDO
1DWLYH$GGLWLRQ
8VLQJWKHQDWLYHDULWKPHWLFKRZHYHULVHDVLHUWKDQWKLVHVSHFLDOO\ZKHQWKHQXPEHUVJHWODUJHU$ERXWDOO
WKDWVQHFHVVDU\WRUHPHPEHULVWKDWILYHRIDQ\RQHXQLWPXVWEHFDUULHGE\FRQYHUWLQJLWWRRQHRIWKHQH[W
ODUJHUXQLW
7KHRQHVRUSHQQLHVFROXPQWRWDOVVHYHQZKLFKLVZKLFKLVFDUU\
LVVL[ZKLFKLVZKLFKLVFDUU\
$QGLVHLJKWZKLFKLVZKLFKLVFDUU\
&OHDUO\WKHQDWLYHDULWKPHWLFLVHDVLHURQFHZHXQGHUVWDQGLW
1DWLYH6XEWUDFWLRQ
6XEWUDFWLRQUHTXLUHVERUURZLQJIRUH[DPSOHFRQYHUWLQJDTXDUWHUWRILYHQLFNHOVRUDQLFNHOWRILYHSHQQLHV
7KHIROORZLQJVXEWUDFWLRQRIWKUHHIURPWHQLOOXVWUDWHVERUURZLQJ
%RUURZDQLFNHOIURPWKHQLFNHOVFROXPQDQGFRQYHUWLWLQWRILYHSHQQLHV
2QHQLFNHOLVOHIW
6RZHJHWRQHQLFNHODQGWZRSHQQLHVOHIW
&RQYHUVLRQWR3HQWLPDO
6RPHWLPHVFRQYHUVLRQVDUHXQDYRLGDEOH)RUDFRPSXWHUWREHDEOHWRVWRUHDQXPEHULQELQDU\ZKLFKLV
LQSXWLQGHFLPDODFRQYHUVLRQLVQHHGHG$OWKRXJKFRQYHUVLRQVFDQEHGRQHE\VHDUFKLQJIRUD
UHSUHVHQWDWLRQZKLFKZRUNVWKHUHDUHPRUHHIILFLHQWPHWKRGV&RQVLGHUWKHFRQYHUVLRQRILQWREDVHILYH
7RXQGHUVWDQGWKLVFRQYHUVLRQLWPD\KHOSWRORRNDWWKHDQVZHUEHIRUHZHVWDUW
:HFDQVHHWKDWFDQEHIDFWRUHGRXWRIWKLVVXPH[FHSWIRUWKHDWWKHHQG
%XWWKLVMXVWVD\VZKDWWKHTXRWLHQWDQGUHPDLQGHURIGLYLGHGE\DUH1RWLFHWKDWWKHUHPDLQGHULVRXU
XQLWVGLJLW)XUWKHUPRUHZHFDQFDOFXODWHWKLVTXRWLHQWDQGUHPDLQGHUXVLQJEDVHWHQZKLFKLVZKDWZHKDYH
DYDLODEOHZKHQZHVWDUWWKLVFRQYHUVLRQ
:HKDYHLQEDVHWHQWKDW
ZKHUHDJDLQSHHNLQJDWWKHDQVZHUVKRZVXVWKDW
7KHTXRWLHQWFRQWDLQVWKHLQIRUPDWLRQQHHGHGWRJHWDOOWKHRWKHUGLJLWV7KH\FDQEHREWDLQHGXVLQJ
PRUHGLYLVLRQV
7KHODVWGLYLVLRQKDVD]HURTXRWLHQW
7KHDOJRULWKPIRUFRQYHUVLRQFRQVLVWVRIUHSHDWHGGLYLVLRQE\HDFKUHPDLQGHU\LHOGLQJDGLJLWRIWKH
DQVZHU,WSURFHHGVXQWLOD]HURTXRWLHQWLVREWDLQHG
7KH%LQDU\6\VWHP
.QRZLQJWKHELQDU\V\VWHPLVLPSRUWDQWEHFDXVHWKHQDWLYHDULWKPHWLFRIDOOH[LVWLQJFRPSXWHUSURFHVVRUVLV
ELQDU\DULWKPHWLF
%LQDU\QXPEHUVXVHRQO\WZRGLJLWVDQG$OOELQDU\QXPEHUVDUHFRQVWUXFWHGIURPMXVWWKHVHWZRGLJLWV
&RXQWLQJJRHVOLNHWKLV
HWF
7KHELQDU\V\VWHPLVDSODFHKROGLQJV\VWHP(DFKSRVLWLRQH[FHSWIRUWKHRQHVSRVLWLRQVWDQGVIRUDXQLW
ZKLFKLVWZLFHWKHYDOXHRIWKHQH[WVPDOOHUXQLW6HH
7DEOH
%LQDU\$GGLWLRQ
6XSSRVHZHZDQWWRDGG
ZKLFKLVWKLUWHHQSOXVVL[7KHILUVWFROXPQGRHVQRWUHTXLUHDFDUU\
1HLWKHUGRHVWKHVHFRQG
7KHWKLUGFROXPQWRWDOVWZRZKLFKLVZKLFKLVFDUU\
7KHIRXUWKFROXPQDOVRWRWDOVWZRZKLFKLVDJDLQFDUU\
7KLVLVH[DFWO\KRZDFRPSXWHUDGGVWKLUWHHQDQGVL[:HFDQFKHFNWKDWWKHUHVXOWLVQLQHWHHQ
î
î
î
î
î
7DEOH%LQDU\6\VWHP3ODFH9DOXHV
V
V
V
V
V
V
%LQDU\
'HFLPDO
%LQDU\6XEWUDFWLRQ
6XSSRVHZHZDQWWRVXEWUDFWILYHIURPWZHOYH
,WUHTXLUHVERUURZLQJ
'RLQJWKHVXEWUDFWLRQLQWKHILUVWFROXPQ\LHOGV
,QWKHWZRVFROXPQZHVXEWUDFW]HURIURPRQH
7KHIRXUVFROXPQUHTXLUHVDQRWKHUERUURZLQJ
7KLVLVKRZWRVXEWUDFWILYHIURPWZHOYHLQELQDU\%XWLWLVQRWDWDOOKRZFRPSXWHUVGRWKLVDULWKPHWLF
&RPSXWHUVGRVXEWUDFWLRQVXVLQJQHJDWLYHVOLNHWKLV
6LQFHWKHPHWKRGWKDWZHOHDUQHGLQVFKRROIRUDGGLQJDQHJDWLYHZDVWRFRQYHUWLWWRDVXEWUDFWLRQWKLV
PLJKWVHHPWREHDGLVWLQFWLRQZLWKRXWDGLIIHUHQFH+RZHYHUFRPSXWHUVXVHDGLIIHUHQWUHSUHVHQWDWLRQIRU
QHJDWLYHVWKDQMXVWVWLFNLQJDPLQXVVLJQLQIURQWRIWKHQXPEHUVRWKHUHUHDOO\LVDGLIIHUHQFH
5HSUHVHQWDWLRQRIQHJDWLYHQXPEHUVLVGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
&RQYHUVLRQWR%LQDU\
)LUVWZHREVHUYHWKDWZHFDQGHWHUPLQHZKHWKHUDQ\ELQDU\QXPEHULVHYHQRURGGE\H[DPLQLQJLWVRQHV
GLJLW)RUH[DPSOHLVRGGDQGLWVELQDU\UHSUHVHQWDWLRQHQGVLQD
)XUWKHU
6RLIZHDUHZRUNLQJZLWKQLQHWHHQXVLQJEDVHWHQZHKDYH
6XSSRVHZHFRQYHUWWRELQDU\7KHLQWKHDERYHHTXDWLRQLVWKHXQLWVGLJLWRIVELQDU\IRUP:HJRW
WKHE\GLYLGLQJE\
5HSHDWLQJWKHSURFHVVDQGZULWLQJGRZQWKHUHPDLQGHUHDFKWLPHJLYHVXVWKHUHVWRIWKHGLJLWV
7KHFRQYHUVLRQLVGRQHE\GLYLGLQJE\UHSHDWHGO\(DFKUHPDLQGHUIXUQLVKHVRQHELQDU\GLJLW
0HPRU\DVD5HFWDQJOHRI%LWV
2QDOOHOHFWURQLFFRPSXWHUVPDLQPHPRU\LVRUJDQL]HGDVDUHFWDQJOHRIELWV
)LJXUH
VKRZVDWLQ\VL[ELW
E\IRXUELWPHPRU\$VVKRZQLQWKHILJXUHPHPRU\LVGLYLGHGZLGWKZLVHLQWRURZV(DFKURZLVFDOOHGD
ZRUG7UDQVIHUVRIGDWDWRDQGIURPFRPSXWHUPHPRU\DUHGRQHDZRUGDWDWLPHRULQPXOWLSOHVRIZRUGV
)LJXUH0HPRU\ZLWK6L[)RXU%LW:RUGV
7KHQXPEHURIELWVLQDZRUGLVFDOOHGWKHZRUGVL]H7KHZRUGVL]HRIWKHPHPRU\LQ
)LJXUH
LVIRXUELWV
$FRPSXWHUZLWKVXFKDPHPRU\ZRXOGEHVDLGWRKDYHIRXUELWZRUGV(DFKZRUGLQWKLVPHPRU\KROGVD
QXPEHUUHSUHVHQWDEOHLQIRXUELQDU\GLJLWVLHDQXPEHUIURPWKURXJK6RIRUH[DPSOHDSURFHVVRU
UHTXHVWLQJWKHZRUGORFDWHGDWWKHDGGUHVVZRXOGEHJLYHQWKHQXPEHU:KHQGHVLJQLQJDFKHVVSOD\LQJ
FRPSXWHUIRUH[DPSOHLWPLJKWEHDJRRGLGHDWRXVHELWZRUGVRQHELWIRUHDFKORFDWLRQRQWKHFKHVV
ERDUG
:RUGVLQFRPSXWHUPHPRU\DUHQXPEHUHGFRQVHFXWLYHO\VWDUWLQJIURP]HUR7KHVHQXPEHUVDUHFDOOHG
DGGUHVVHV,Q
)LJXUH
WKHDGGUHVVHVDUHWKHLQWHJHUVIURPWKURXJK$FRPSXWHUZLWKQZRUGVZLOO
KDYHDGGUHVVHVIURPWKURXJKQ:KHQUHTXHVWLQJGDWDWUDQVIHUVLQWRRURXWIURPPHPRU\FRPSXWHU
SURFHVVRUVXVHDGGUHVVHVWRVSHFLI\ZKLFKGDWDZRUGVDUHWREHWUDQVIHUUHG
7KHWRWDOFDSDFLW\RIDFRPSXWHUPHPRU\LVWKHQXPEHURIZRUGVLQWKHPHPRU\WLPHVWKHZRUGVL]HOHQJWK
WLPHVZLGWK7KHOLWWOHPHPRU\LQ
)LJXUH
KDVDFDSDFLW\RIELWV0HPRU\FDSDFLW\LVRIWHQPHDVXUHG
LQE\WHVLQVWHDGRIELWV2QHE\WHRIPHPRU\LVWKHVDPHDVHLJKWELWV
&RPSXWHUVEDVHGRQ,QWHOSURFHVVRUVXVHHLJKWELWZRUGV$ZDUQLQJQRWHLVLQRUGHUKHUH%HFDXVH
GRFXPHQWDWLRQIURP,QWHODQG0LFURVRIWXVHWKHWHUPZRUGWRUHIHUWRDELWREMHFWWKLVXVDJHKDVEHFRPH
IDLUO\VWDQGDUG7KLVLVXQIRUWXQDWH,WLVEHWWHUWROHDYHWKHWHUPZLWKLWVPDFKLQHGHSHQGHQWPHDQLQJ,QDQ\
FDVHWKHQXPEHURIE\WHVLQWKHPHPRU\RIDQ,QWHOEDVHGPDFKLQHLVWKHVDPHDVWKHQXPEHURIDGGUHVVHV
%HFDXVHWKHQXPEHURIZRUGVLQDFRPSXWHUPHPRU\LVW\SLFDOO\DODUJHSRZHURIWZRRUDVPDOOPXOWLSOH
WKHUHRIVHYHUDOQDPHVIRUWKHVHODUJHSRZHUVRIWZRKDYHEHHQDGDSWHGIURPWKHPHWULFV\VWHP)RU
H[DPSOH
LVDQGLVDSSUR[LPDWHO\,QWKHPHWULFV\VWHPWKHOHWWHU.IURPNLORLVXVHGWR
VWDQGIRU,QUHIHUHQFHWRFRPSXWHUPHPRU\NLORPHDQV2WKHUPHWULFSUHIL[HVZKLFKKDYHEHHQ
DGDSWHGDUHVKRZQLQWKHIROORZLQJWDEOH
7KHXVHRIWKHDSSUR[LPDWHHTXDOLWLHVLQWKLVWDEOHPDNHVSRVVLEOHVLPSOLILHGFRPSXWDWLRQVLQYROYLQJODUJH
([DFW9DOXH
6\PERO
3UHIL[
$SSUR[LPDWH9DOXH
.
NLOR
WKRXVDQG
0
PHJD
PLOOLRQ
*
JLJD
ELOOLRQ
7
WHUD
WULOOLRQ
/DUJH3RZHUVRI7ZR
SRZHUVRIWZR)RUH[DPSOHWKHPD[LPXPPHPRU\FDSDFLW\RIDQ,%0$7FRPSXWHULV
E\WHVRI
PHPRU\7RH[SUHVVWKLVDPRXQWLQPRUHIDPLOLDUWHUPVZHPD\EUHDNGRZQ
DVIROORZV
7KLVLVDSSUR[LPDWHO\PLOOLRQE\WHV6LQFH
.î. 0HJWKHH[DFWDPRXQWRIPHPRU\LVO
0HJDE\WHVRUE\WHV
7KH+H[DGHFLPDO6\VWHP
%DVHVL[WHHQLVLPSRUWDQWEHFDXVHLWLVHDVLHUWRUHDGDQGZULWHWKDQELQDU\EXWLVQRQHWKHOHVVUHDGLO\
FRQYHUWLEOHWRDQGIURPELQDU\
%DVHVL[WHHQLVDOVRWKHILUVWEDVHZHKDYHFRQVLGHUHGZKLFKLVJUHDWHUWKDQWHQ,QVWHDGRISXWWLQJVRPH
QXPHUDOVRXWRIZRUNEDVHVL[WHHQUHTXLUHVWKHHPSOR\PHQWRIDGGLWLRQDOQXPHUDOV6LQFHQXPHUDOVDUH
QHHGHGIRUDOOQXPEHUVOHVVWKDQVL[WHHQWKLVPHDQVSRVLWLRQVDUHRSHQIRUWKHQXPEHUVWHQHOHYHQWZHOYH
WKLUWHHQIRXUWHHQDQGILIWHHQ,WLVWKHFXVWRPWRILOOWKHVHSRVLWLRQVZLWKWKHOHWWHUV$%&'(DQG)
6RLQEDVHVL[WHHQFRXQWLQJJRHVOLNHWKLV$%&'()
$%&'()DQGVRRQ6HH
7DEOH
7DEOH+H[DGHFLPDO6\VWHP3ODFH9DOXHV
V
V
+H[DGHFLPDO
'HFLPDO
$
$
%
%
&
&
'
'
(
(
)
)
$
$
%
%
&
&
'
'
7KHUHLVYDOXHLQEHLQJDEOHWRDGGDQGVXEWUDFWLQKH['HEXJJHUVJHQHUDOO\GLVSOD\UHJLVWHUVLQKH[DQGLW
LVKDQG\WREHDEOHWRFKHFNWKHDULWKPHWLFEHLQJGLVSOD\HGZLWKRXWKDYLQJWRFRQYHUWEDFNWREDVHWHQ
$GGLWLRQDQGVXEWUDFWLRQDUHHDV\WRGRLQKH[LIZHUHPHPEHUWKDWFDUU\LQJDQGERUURZLQJDUHGRQHZLWK
$GGLWLRQLQ+H[
7RDGG
ZHVWDUWZLWKWZHOYHSOXVHLJKWZKLFKLVWZHQW\ZKLFKLV+ZKLFKLVFDUU\
SOXVHOHYHQSOXVVHYHQLVQLQHWHHQZKLFKLV+ZKLFKLVFDUU\
$ HLJKWHHQZKLFKLV+ZKLFKLVFDUU\
)LQDOO\
6XEWUDFWLRQLQ+H[
7RVXEWUDFW
(
(
)
)
ZHVWDUWE\ERUURZLQJ
&²(LVWZHQW\HLJKWPLQXVIRXUWHHQZKLFKLVIRXUWHHQ
$²LVWHQPLQXVIRXULV
$JDLQERUURZLQJ
$LVWZHQW\WKUHHPLQXVWHQZKLFKLVWKLUWHHQRU'
)LQDOO\
&RQYHUVLRQWR+H[
7RFRQYHUWDQXPEHULQWREDVHVL[WHHQZHFDQGLYLGHE\DVPDQ\WLPHVDVQHFHVVDU\6XSSRVHZHFRQYHUW
LQWRKH[DGHFLPDO
7RGHPRQVWUDWHWKHHDV\FRQYHUWLELOLW\RIEDVHWZRLQWREDVHVL[WHHQZHDJDLQFRQVLGHUWKHQXPEHU
RQO\WKLVWLPHZHFRQYHUWLWLQWREDVHWZR
7KHIDFWWKDWGLYLGLQJE\IRXUWLPHVLVHVVHQWLDOO\WKHVDPHWKLQJDVGLYLGLQJE\VXJJHVWVWKDWIRXU
VWDJHVRIWKLVFRQYHUVLRQPXVWFRUUHVSRQGWRRQHVWDJHRIKH[DGHFLPDOFRQYHUVLRQ,IZHJURXSWKHELQDU\
GLJLWVLQWRIRXUVZHGRLQIDFWREVHUYHWKLVUHODWLRQVKLS
7KHVHOXPSVRIIRXUGLJLWVZKHQWUHDWHGDVLQGLYLGXDOQXPEHUVDQGJLYHXVWKH
KH[DGHFLPDOGLJLWV(DQG7KLVLVWKHEDVHVL[WHHQUHSUHVHQWDWLRQRIRQHWKRXVDQG,WLVFOHDUKRZWR
FRQYHUWLQWKHRWKHUGLUHFWLRQDVZHOO7KHFRQYHUVLRQEHWZHHQWKHWZRLVHDV\HQRXJKWKDWLWFDQEHGRQH
ZLWKRXWWKLQNLQJ6HH
7DEOH
7KLVPDNHVLWSRVVLEOHWRXVHKH[DGHFLPDODVDKXPDQUHDGDEOHIRUPRI
ELQDU\DNLQGRIKLJKOHYHOPDFKLQHODQJXDJH&RQVLGHUWKHIROORZLQJWZRUHSUHVHQWDWLRQVRIWKHVDPH
QXPEHU
(
%
$
6XSSRVH\RXKDGWRUHDGRQHRIWKHVHWRDKDUGZDUHVXSSRUWSHUVRQRYHUWKHSKRQHRUFRS\LWRQWRD
SRVWFDUG,VWKHUHDQ\GRXEWWKDWXVLQJKH[ZRXOGEHHDVLHUDQGOHVVOLDEOHWRHUURU"
&RPSXWHUSURJUDPVRULJLQDOO\FRQVLVWHGRIOLQHDIWHUOLQHRIELQDU\FRGH7KHUHLVDELWWHUVZHHWLURQ\KHUH
)LOOLQJRXWFRGLQJVKHHWVZLWK]HURVDQGRQHVZDVDMREW\SLFDOO\GRQHE\ZRPHQ$VDUHVXOWPDQ\ZRPHQ
JRWLQRQWKHYHU\EHJLQQLQJRIWKHFRPSXWHUSURJUDPPLQJILHOG
:K\QRW2FWDO"
2FWDOQXPEHUVFDQEHFRQYHUWHGEDFNDQGIRUWKIURPELQDU\LQWKHVDPHZD\DVKH[QXPEHUVPHUHO\
JURXSLQJE\WKUHHVLQVWHDGRIIRXUV2FWDODOVRKDVWKHDGYDQWDJHRYHUKH[LQWKDWQRDOSKDEHWLFQXPHUDOVDUH
QHHGHG+RZHYHUWKHLQFUHDVLQJO\ZLGHVSUHDGXVHRIWKHE\WHDVWKHIXQGDPHQWDOXQLWRIPHPRU\KDVOHGWR
DGHFUHDVHLQWKHLPSRUWDQFHRIRFWDO
%DVH'LVWLQJXLVKLQJ1RWDWLRQV
6LQFHDOOWKHGLJLWVLQGHFLPDODUHYDOLGLQKH[DGHFLPDOLWLVQRWSRVVLEOHWRGHWHUPLQHZLWKRXWDGGLWLRQDO
LQIRUPDWLRQZKHWKHUQXPHUDWLRQVXFKDVLVLQWHQGHGDVGHFLPDORUKH[$FRPPRQFRQYHQWLRQIRU
LQGLFDWLQJKH[DGHFLPDOLVWKHXVHRIDQDSSHQGHG+:KHQWKLVFRQYHQWLRQLVXVHGMXVWPHDQVILIW\EXW
+PHDQVILIW\LQKH[LHHLJKW\2FFDVLRQDOO\SDUWLFXODUO\ZLWKDVVHPEOHUV%DQG'DUHDSSHQGHGWR
LQGLFDWHELQDU\DQGGHFLPDO$SSHQGLQJ2IRURFWDOZRXOGREYLRXVO\QRWEHDJRRGLGHD,QWKH&ODQJXDJH
RFWDOLVLQGLFDWHGE\SUHSHQGLQJD
DQGKH[DGHFLPDOLVLQGLFDWHGE\SUHSHQGLQJD
[
7KLVERRNSODFHV
SULPDU\UHOLDQFHRQGHFLPDOKH[DGHFLPDODQGELQDU\QXPHUDWLRQ7RGLVWLQJXLVKWKHVHEDVHVWKHIROORZLQJ
FRQYHQWLRQVZLOOEHXVHG
z
+H[DGHFLPDOH[FHSWLQ&SURJUDPVZLOODOZD\VEHLQGLFDWHGE\DQDSSHQGHG+,QDGGLWLRQEHFDXVH
RIDSUREOHPGLVFXVVHGLQ
VHFWLRQ
KH[QXPHUDWLRQXVHGLQWKHDVVHPEO\ODQJXDJHZLOODOVRKDYHD
SUHSHQGHG
z
%LQDU\ZLOOEHLQGLFDWHGE\JURXSLQJGLJLWVLQWRFOXPSVRIIRXUVHSDUDWHGE\VSDFHV
z
%DVHWHQQXPHUDWLRQLVWKHGHIDXOW,WLVDVVXPHGIRUDOOQXPHUDWLRQZKRVHEDVHLVQRWRWKHUZLVH
LQGLFDWHG
)UDFWLRQVLQ2WKHU%DVHV
7DEOH+H[%LQDU\&RQYHUVLRQ
%LQDU\
+H[DGHFLPDO
'HFLPDO
$
%
&
'
(
)
0XFKFRPSXWDWLRQLQYROYLQJIUDFWLRQVLVGRQHXVLQJVFLHQWLILFQRWDWLRQ%HFDXVHVFLHQWLILFQRWDWLRQLQYROYHV
ERWKGHFLPDOIUDFWLRQVDQGH[SOLFLWSRZHUVRIWHQLWDOORZVIRUIUHHGRPLQWKHORFDWLRQRIWKHGHFLPDOSRLQW
)RUH[DPSOH
&RQVHTXHQWO\VFLHQWLILFQRWDWLRQLVVRPHWLPHVUHIHUUHGWRDVIORDWLQJSRLQWQRWDWLRQ7KHIORDWLQJSRLQW
SURSHUW\RIWKHUHSUHVHQWDWLRQLVDUHVXOWRIWKHIDFWWKDWDOOSDUWVRIWKHUHSUHVHQWDWLRQLQFOXGLQJWKH
IUDFWLRQDOSDUWXVHSRZHUVRIWHQ,QRUGHUWRWDNHDGYDQWDJHRIWKHIORDWLQJSRLQWSURSHUW\LQFRPSXWHU
FRPSXWDWLRQVZKLFKXVHWKHELQDU\V\VWHPDOOIUDFWLRQVDQGH[SOLFLWSRZHUVPXVWEHELQDU\LQVWHDGRI
GHFLPDO
1RQGHFLPDOSODFHKROGLQJIUDFWLRQVZHUHXVHGE\WKH%DE\ORQLDQVDQGSHUVLVWWRGD\LQRXUWLPHDQGDQJOH
XQLWV\VWHPVZKHUHZHVHHPLQXWHVDQGVHFRQGVDVEDVHIUDFWLRQV
'HFLPDOIUDFWLRQVRIFRXUVHDUHRXUHYHU\GD\VWDQGDUG)RUH[DPSOH
:HILQGWKLVEDVHWHQIUDFWLRQXVLQJORQJGLYLVLRQ
6XSSRVHZHZDQWWRILQGRQHHLJKWKDVDSHQWLPDOIUDFWLRQ:HFDQXVHORQJGLYLVLRQLQEDVHILYHXVLQJWKH
SHQWLPDOPXOWLSOLFDWLRQWDEOHZKHUHQHFHVVDU\7KHSHQWLPDOUHSUHVHQWDWLRQRIHLJKWLV
7KLVLVDUHSHDWLQJIUDFWLRQVLPLODUWR
LQWKHGHFLPDOV\VWHP6RRQHHLJKWKLQWKHSHQWLPDO
V\VWHPLV
DQLQILQLWHO\UHSHDWLQJIUDFWLRQ,WVPHDQLQJUHSUHVHQWHGXVLQJRUGLQDU\GHFLPDOQRWDWLRQLVWKDW
,IZHXVHORQJGLYLVLRQWRJHWWKHKH[DGHFLPDOIUDFWLRQZHJHWDILQLWHUHSUHVHQWDWLRQ
7KLVLVFHUWDLQO\FRUUHFWVLQFH
,QEDVHWZRWKHVDPHGLYLVLRQORRNVOLNHWKLV
7KLVLVFRUUHFWVLQFH
,QHDUO\,QWHOV\VWHPVFRPSXWDWLRQVEDVHGRQIORDWLQJSRLQWQXPEHUVZHUHGRQHRQVHSDUDWHSURFHVVRUVVXFK
DVWKH6LQFHWKHWKHVHIORDWLQJSRLQWXQLWVZHUHLQFRUSRUDWHGLQWRWKHPDLQSURFHVVRU,Q&D
SURJUDPPHUPD\VHQGFRPSXWDWLRQVWRWKHIORDWLQJSRLQWXQLWE\XVLQJDIORDWLQJSRLQWGDWDW\SHVXFKDV
GRXEOH
&RQYHUWLQJ)UDFWLRQV
,QWKHSUHYLRXVVHFWLRQZHXVHGORQJGLYLVLRQWRILQGDSODFHKROGLQJIUDFWLRQJLYHQWKHQXPHUDWRUDQG
GHQRPLQDWRUDVLQWHJHUV)RUH[DPSOHWRILQGDEDVHWZRSODFHKROGLQJIUDFWLRQZHFRXOGGRORQJGLYLVLRQ
LQEDVHWZR,IZHDUHJLYHQLQVWHDGDSODFHKROGLQJIUDFWLRQLQVRPHRWKHUEDVHZHFDQXVHDPXOWLSOLFDWLYH
SURFHVVWRGRWKHFRQYHUVLRQ)RUH[DPSOHVXSSRVHZHDUHJLYHQWKHGHFLPDOIUDFWLRQ«DQGZH
ZLVKWRFRQYHUWWKDWLQWRDELQDU\IUDFWLRQ/HWE
E
E
«EHWKHXQNQRZQGLJLWVLQRXUELQDU\IUDFWLRQ
,IZHXVHWKHHTXDOLW\
ZHFDQGHWHUPLQHWKHLUYDOXHVDVIROORZV6XSSRVHZHGRXEOHERWKVLGHVRIWKLVHTXDWLRQ
7KHLQWHJHUSDUWVRIERWKVLGHVPXVWDJUHH7KHLQWHJHUSDUWRIWKHOHIWVLGHLV]HURVRE
+HQFHZHKDYH
RXUILUVWGLJLWDQGZHDOVRKDYHWKHHTXDWLRQ
,IZHGRXEOHWKLVHTXDWLRQZHJHW
$JDLQWKHLQWHJHUSDUWVRIERWKVLGHVPXVWDJUHHVRE
6XEWUDFWLQJ E
IURPWKLVHTXDWLRQ\LHOGVWKH
HTXDWLRQ
&RQWLQXLQJLQWKLVZD\ZHJHWE
E
E
E
HWF+HQFHWKHELQDU\IRUPRILV
:HKDYHMXVWIRXQGDELQDU\IUDFWLRQIURPDGHFLPDOIUDFWLRQE\PXOWLSO\LQJE\UHSHDWHGO\7RILQGD
SHQWLPDOIUDFWLRQIURPDGHFLPDOIUDFWLRQZHEHJLQZLWKDVLPLODUHTXDWLRQDQGPXOWLSO\E\UHSHDWHGO\
%\GHILQLWLRQWKHEDVHILYHFRHIILFLHQWVPDNHWKLVHTXDWLRQWUXH
0XOWLSO\LQJWKLVHTXDWLRQE\\LHOGV
7KHLQWHJHUSDUWRIERWKVLGHVPXVWDJUHH+HQFHE
6XEWUDFWLQJ E
\LHOGV
0XOWLSO\LQJWKLVHTXDWLRQE\\LHOGV
)URPWKLVZHJHWE
DQG
&RQWLQXLQJLQWKLVZD\ZHJHWE
E
E
E
HWF6RWKHSHQWLPDOHTXLYDOHQWLV«
)XUWKHU5HDGLQJ
1XPEHU:RUGVDQG1XPEHU6\PEROV$&XOWXUDO+LVWRU\RI1XPEHUV.DUO0HQQLQJHU'RYHU%RRNV
&KDSWHU/2*,&&,5&8,76$1'&20387$7,21
(OHFWURQLFFRPSXWHUVDUHPDGHRIORJLFFLUFXLWV7KHDLPRIWKLVFKDSWHULVWRH[SODLQKRZWKHEDVLF
FRPSXWHUIXQFWLRQVRIDULWKPHWLFDQGVWRUDJHFDQEHGRQHXVLQJWKHVHFLUFXLWV,WFXOPLQDWHVLQDEULHI
GLVFXVVLRQRIWKH
$''
DQG
029
FRPPDQGV
7KHPRVWEDVLFORJLFFLUFXLWVDUHFDOOHGJDWHV*DWHVDUHFRQWUROOHUFLUFXLWV7KHVLPSOHVWORJLFJDWHLVWKH
127JDWH,QWKHQH[WVHFWLRQLWLVVKRZQKRZD127JDWHFDQFRQWURODIODVKOLJKW
7KH127*DWH
7KHVLPSOHIODVKOLJKWFLUFXLWVKRZQLQ
)LJXUH
LVFRQWUROOHGE\WKHVZLWFKDWWKHWRSZKLFKLVVKRZQLQ
WKHRSHQSRVLWLRQ7KHQHJDWLYHHQGRIWKHEDWWHU\LVFRQQHFWHGGLUHFWO\WRWKHEXOEEXWWKHSRVLWLYHHQGLV
RQO\FRQQHFWHGWRWKHEXOEE\ZD\RIWKHVZLWFK6RZKHQWKHVZLWFKLVRSHQFXUUHQWZLOOQRWIORZDQGWKH
EXOELVRII:KHQWKHVZLWFKLVFORVHGFXUUHQWFDQIORZDQGWKHEXOEFRPHVRQ7KHFRQWUROLVPHFKDQLFDO
)LJXUH$6LPSOH)ODVKOLJKW
/RJLF*DWH7HUPLQDOV
$ORJLFJDWHLVDFLUFXLWZKLFKZRUNVOLNHDVZLWFK
)LJXUH
VKRZVDJHQHULFORJLFJDWHKRRNHGXSWRD
EDWWHU\$VVKRZQLQWKHILJXUHDORJLFJDWHKDVIRXURUPRUHWHUPLQDOV
)LJXUH$*HQHULF/RJLF*DWH
2XWSXW7HUPLQDO7KLVWHUPLQDOLVVZLWFKHGVRWKDWLWLVFRQQHFWHGHLWKHUWRWKHSRVLWLYHRUWKH
QHJDWLYHSRZHUWHUPLQDO7KHVZLWFKLQJLVGRQHE\VROLGVWDWHHOHFWURQLFVLPEHGGHGLQVLOLFRQDQG
LQYROYHVQRPRYLQJSDUWV
3RVLWLYH3RZHU7HUPLQDO7KLVWHUPLQDOLVDOZD\VFRQQHFWHGWRWKHSRVLWLYHEDWWHU\RUSRZHUVXSSO\
WHUPLQDO
1HJDWLYH3RZHU7HUPLQDO7KLVWHUPLQDOLVDOZD\VFRQQHFWHGWRWKHQHJDWLYHEDWWHU\RUSRZHU
VXSSO\WHUPLQDO
,QSXW7HUPLQDO$ORJLFJDWHKDVRQHRUPRUHLQSXWWHUPLQDOV7KHVHWHUPLQDOVFDUU\WKHLQSXW
VLJQDOVZKLFKGHWHUPLQHZKHWKHUWKHRXWSXWWHUPLQDOLVVZLWFKHGWRWKHSRVLWLYHRUWKHQHJDWLYHSRZHU
WHUPLQDO'LIIHUHQWW\SHVRIORJLFJDWHVPDNHWKLVGHWHUPLQDWLRQLQGLIIHUHQWZD\V
/RJLF9DOXH&RQYHQWLRQV
%HFDXVHWKHWZRSRZHUWHUPLQDOVRQWKHORJLFJDWHDUHDOZD\VFRQQHFWHGWRWKHFRUUHVSRQGLQJWHUPLQDOVRQ
WKHEDWWHU\RUSRZHUVXSSO\WKHRXWSXWWHUPLQDODOZD\VVXSSOLHVDFRQQHFWLRQWRHLWKHUWKHSRVLWLYHRUWKH
QHJDWLYHEDWWHU\RUSRZHUVXSSO\WHUPLQDO)RUFLUFXLWVLQWKLVERRN
z
$JDWHWHUPLQDOFRQQHFWHGGLUHFWO\RULQGLUHFWO\WRWKHSRVLWLYHEDWWHU\RUSRZHUVXSSO\WHUPLQDOLV
GHVFULEHGDVEHLQJDWORJLF
z
$JDWHWHUPLQDOFRQQHFWHGGLUHFWO\RULQGLUHFWO\WRWKHQHJDWLYHEDWWHU\RUSRZHUVXSSO\WHUPLQDOLV
GHVFULEHGDVEHLQJDWORJLF
%HFDXVHWKHLQSXWWHUPLQDOVDUHJHQHUDOO\FRQQHFWHGGLUHFWO\RULQGLUHFWO\WRWKHEDWWHU\RUSRZHUVXSSO\
WHUPLQDOVMXVWOLNHRXWSXWWHUPLQDOVWKH\FDQDOVREHGHVFULEHGDVEHLQJDWORJLFRUDWORJLF7KHIDFWWKDW
WKHLQSXWWHUPLQDOVDUHGHVLJQHGWREHDWORJLFRUORJLFKDVDVDIXUWKHUFRQVHTXHQFHWKDWWKHRXWSXWRIRQH
ORJLFJDWHFDQEHFRQQHFWHGWRWKHLQSXWRIDQRWKHUZLWKSUHGLFWDEOHUHVXOWV
%HKDYLRURIWKH127*DWH
7KH127JDWHLVDORJLFJDWHZKLFKKDVRQHLQSXWWHUPLQDO7RGHVFULEHWKHEHKDYLRURIWKH127JDWHDOO
WKDWLVQHHGHGLVWRGHVFULEHKRZLWVLQSXWGHWHUPLQHVLWVRXWSXW7KHUXOHVDUH
z
,IWKHLQSXWLVDWORJLFWKHRXWSXWLVDWORJLF
z
,IWKHLQSXWLVDWORJLFWKHRXWSXWLVDWORJLF
:HFDQQRZSXWDIODVKOLJKWWRJHWKHUE\KRRNLQJWKHRXWSXWRIWKH127JDWHWRDEXOEDQGWKHLQSXWWRD
PHFKDQLFDOVZLWFK
)LJXUH
LOOXVWUDWHVWKLVKRRNXS:KHQZLUHVLQDGLDJUDPDUHVKRZQFURVVLQJDWD
EODFNGRWLWPHDQVWKDWWKHZLUHVDUHFRQQHFWHG:KHQZLUHVFURVVDQGWKHUHLVQREODFNGRWLWPHDQVWKDW
WKH\DUHQRWLQFRQWDFWZLWKHDFKRWKHU7KHIODVKOLJKWLQWKLVILJXUHLVXOWLPDWHO\FRQWUROOHGE\DPHFKDQLFDO
VZLWFKMXVWOLNHWKHIODVKOLJKWLQ
)LJXUH
:KHQWKHVZLWFKLVLQWKHGRZQSRVLWLRQDVVKRZQLQWKHILJXUH
WKHIODVKOLJKWLVRQ7KHGRZQSRVLWLRQFRQQHFWVWKHLQSXWWHUPLQDORIWKH127JDWHWRWKHQHJDWLYHEDWWHU\
WHUPLQDOZKLFKSXWVLWDWORJLF7KHUHIRUHEHFDXVHRIWKHZD\D127JDWHZRUNVWKHRXWSXWLVDWORJLF
7KLVPHDQVWKDWWKHRXWSXWWHUPLQDOLVFRQQHFWHGLQWHUQDOO\E\WKH127JDWHWRWKHSRVLWLYHSRZHUWHUPLQDO
DQGWKHUHIRUHWRWKHSRVLWLYHHQGRIWKHEDWWHU\+HQFHWKHEXOEJHWVFXUUHQWDQGWKHIODVKOLJKWLVRQ
)LJXUH$127*DWH&RQWUROOHG)ODVKOLJKW
7UXWK7DEOHIRUWKH127*DWH
/RJLFYDOXHVPDNHLWHDV\WRVXPPDUL]HWKHEHKDYLRURID127JDWHZLWKDVPDOOWDEOH6XFKDWDEOHLVFDOOHG
DWUXWKWDEOH
7DEOH
VKRZVWKHWUXWKWDEOHIRUWKH127JDWH
*DWH/HYHO'LDJUDPV
$ORJLFFLUFXLWGLDJUDPZKLFKVKRZVWKHLQGLYLGXDOORJLFJDWHVEXWQRWWKHLULQWHUQDOPDNHXSLVFDOOHGDJDWH
OHYHOGLDJUDP,QDJDWHOHYHOGLDJUDPWKHSRZHUWHUPLQDOVRQWKHORJLFJDWHVDUHXVXDOO\QRWVKRZQ7KH
V\PEROIRUWKH127JDWHXVHGLQJDWHOHYHOGLDJUDPVVKRZVRQO\WZRWHUPLQDOVWKHLQSXWDQGWKHRXWSXW
7KHZLUHVKRZQRQWKHOHIWUHSUHVHQWVWKHLQSXWWKHZLUHRQWKHULJKWLVWKHRXWSXW
)LJXUH
VKRZVWKHGLDJUDPRIWKH127JDWHFRQWUROOHGIODVKOLJKWXVLQJWKHVFKHPDWLFV\PERO7KLV
GLDJUDPFDQEHFRQIXVLQJEHFDXVHWKHPDLQSRZHUFRQQHFWLRQVWRWKH127JDWHDUHQRWVKRZQ,QWKLV
ILJXUHWKHRQO\EDWWHU\FRQQHFWLRQLVDWWKHVLJQDOLQJLQSXWWRWKH127JDWH$OWKRXJKWKHSRZHU
FRQQHFWLRQVDUHQRWVKRZQWKH\PXVWEHWKHUHRUWKHFLUFXLWZLOOQRWZRUN
)LJXUH
UHSUHVHQWVH[DFWO\WKH
VDPHKRRNXSDV
)LJXUH
)LJXUH7KLV)ODVKOLJKWLV2Q
%RROHDQ2SHUDWRUV
7KH127JDWHGLVFXVVHGLQWKHODVWVHFWLRQLVDQH[DPSOHRIDORJLFJDWH/RJLFJDWHVDUHFLUFXLWVZKRVH
EHKDYLRULVPRGHOHGRQ%RROHDQRSHUDWRUV
7KHPRVWEDVLF%RROHDQRSHUDWRUVDUH$1'25;25DQG127,QWKH&ODQJXDJHZHKDYHWKHV\PEROV
IRU$1'__IRU25DQGIRU1277KHZRUNLQJVRIWKHVHRSHUDWRUVFDQEHLOOXVWUDWHGZLWKWZR
H[DPSOHVIURP&,QWKHVHH[DPSOHV
7DEOH7UXWK7DEOHIRU127*DWH
,QSXW
2XWSXW
WKH&ODQJXDJHVWDWHPHQWVDUHHYDOXDWHGXVLQJDVWHSE\VWHSVLPSOLILFDWLRQSURFHVV
7KH252SHUDWRU
7KHILUVWH[DPSOHLVDQ
LI
VWDWHPHQWLQYROYLQJWKH%RROHDQ25RSHUDWRU,QZKDWIROORZVZHVXSSRVHWKDW
[
KDVDOUHDG\EHHQJLYHQWKHYDOXH
LI[!__[\
z
)LUVWWKHWUXWKYDOXHVRIWKHRSHUDQGVPD\EHGHWHUPLQHG,QWKLVFDVHEHFDXVH
[!
LVWUXHLWKDV
WKHYDOXHEHFDXVH
[
LVIDOVHLWKDVWKHYDOXH7KHVHHYDOXDWLRQVUHVXOWLQWKHIROORZLQJ
VLPSOLILFDWLRQRIWKH&ODQJXDJHVWDWHPHQW
LI__\
z
7KH%RROHDQ25RSHUDWRUPD\EHDSSOLHGQH[W7KHRQO\WKLQJ25VHHVLVWKHWUXWKYDOXHVUHVXOWLQJ
IURPWKHRSHUDQGHYDOXDWLRQV25LVJLYHQDDQGDIURPZKLFKLWSURGXFHVD
LI\
z
7KH
LI
FDQJRWRZRUNQH[W$OOLWVHHVLQWKHSDUHQWKHVHVLVD+HQFHLWSURGXFHVWKHVLPSOH
DVVLJQPHQWVWDWHPHQW
\
7KHHQGUHVXOWRIWKHSURFHVVLVWKDW\LVVHWWRWKHYDOXH1RWLFHWKDWWKH25RSHUDWRUQHYHUVDZWKHYDOXH
RI
[
,WQHHGVRQO\VDQGVWRGRLWVMRE&RQVHTXHQWO\WKHZRUNLQJVRIWKH25RSHUDWRUFDQEHGHVFULEHG
LQDWUXWKWDEOHMXVWOLNHWKHWUXWKWDEOHIRUWKH127JDWH
7DEOH
VKRZVWKHWUXWKWDEOHIRUWKH25RSHUDWRU
,QWUXWKWDEOHVIRU%RROHDQRSHUDWRUVWKHOHWWHUVSDQGTDUHRIWHQXVHGDVYDULDEOHVIRUWKHWUXWKYDOXHVDQG
9DULDEOHVZKLFKKDYHRQO\WKHVHWZRSRVVLEOHYDOXHVDUHVRPHWLPHVFDOOHG%RROHDQYDULDEOHV1RWLFHWKDW
WKHGHFLVLRQPDGHLQWKH&H[DPSOHFRXOGKDYHEHHQLQIHUUHGIURPWKHVHFRQGOLQHRI
7DEOH
7KH$1'2SHUDWRU
7KH$1'RSHUDWRUFDQDOVREHGHVFULEHGZLWKDWUXWKWDEOH6HH
7DEOH
7KHQH[WH[DPSOHVKRZVWKHXVH
RIWKLVWDEOHLQHYDOXDWLQJD&ODQJXDJHVWDWHPHQWFRQWDLQLQJDQ$1'RSHUDWRU
z
$JDLQVXSSRVHWKDW
[
LI[![]
7DEOH7UXWK7DEOHIRU25
S
T
S25T
7DEOH7UXWK7DEOHIRU$1'
S
T
S$1'T
z
$JDLQWKHRSHUDQGVKDYHWKHYDOXHVDQG
LIO]
z
7KHRSHUDWLRQRIWKH$1'RSHUDWRUFDQEHUHIHUUHGWRWKHVHFRQGOLQHRI
7DEOH
IURPZKLFKZHVHH
WKDWDUHVXOWV
LI]
z
7KHLQWKHSDUHQWKHVHVUHVXOWVLQDQXOOVWDWHPHQW1RWKLQJKDSSHQV
)URPWKHVHH[DPSOHVLWLVFOHDUWKDWWKHMRERIWKH%RROHDQRSHUDWRUVLVWRRSHUDWHRQWUXWKYDOXHVDQG
SURGXFHDWUXWKYDOXH
%RROHDQ([SUHVVLRQV
-XVWDVRSHUDWRUVLQ&PD\EHQHVWHGDVLQWKHVWDWHPHQW
LI[![__[ Z
VR%RROHDQRSHUDWRUVE\WKHPVHOYHVPD\EHQHVWHG
7KHUHVXOWLQJH[SUHVVLRQVDUHFDOOHG%RROHDQH[SUHVVLRQV-XVWDV%RROHDQRSHUDWRUVKDYHWUXWKWDEOHVVRGR
%RROHDQH[SUHVVLRQV7KHWUXWKWDEOHIRUWKHH[SUHVVLRQMXVWVKRZQLVJLYHQLQ
7DEOH
/RJLF*DWHV
7DEOH
VKRZVWKHWUXWKWDEOHIRUWKH%RROHDQ127RSHUDWRU,WLVYHU\VLPLODUWRWKHWUXWKWDEOHIRUWKH
127JDWHVKRZQLQ
7DEOH
,IZHWKLQNRISDVWKHLQSXWDQG127SDVWKHRXWSXWWKHUHLVLQIDFWQR
GLIIHUHQFH2QHVKRXOGHYHQWKLQNRIWKH127JDWHDVDVLOLFRQLPSOHPHQWDWLRQRIWKH127RSHUDWRU7KH
%RROHDQRSHUDWRUV$1'25DQG;25DUHDOVRLPSOHPHQWHGLQVLOLFRQ
7DEOH7UXWK7DEOHIRUD%RROHDQ([SUHVVLRQ
S
T
U
S$1'T25U
7DEOH7UXWK7DEOHIRU127
S
127S
7KH25*DWH
7KH25JDWHLVDFLUFXLWZLWKWZRLQSXWWHUPLQDOV,WLVUHSUHVHQWHGLQJDWHOHYHOGLDJUDPVZLWKWKHV\PERO
7KHLQSXWVDUHVKRZQRQWKHOHIW7KHRXWSXWLVRQWKHULJKW)URP
7DEOH
ZHPD\LQIHUWKDW
z
,IERWKLQSXWWHUPLQDOVDUHDWORJLFWKHQWKHRXWSXWWHUPLQDOZLOOEHDWORJLF
z
,IHLWKHULQSXWWHUPLQDOLVDWORJLFWKHQWKHRXWSXWWHUPLQDOZLOOEHDWORJLF
,QWKHIROORZLQJFLUFXLWIRUH[DPSOHXQOHVVWKHORJLFYDOXHVDSSOLHGWRDOORIWKH)LOWHULQSXWVDUHHTXDOWR
WKHRXWSXWZLOOEHDWORJLF,IDORJLFLVDSSOLHGWRHDFKRIWKH)LOWHULQSXWVWKHQWKHRXWSXWORJLFYDOXH
ZLOOEHWKHVDPHDVWKHLQSXWORJLFYDOXH,QWKLVFDVHRQHFDQWKLQNRIWKHLQSXWVLJQDODVKDYLQJSDVVHG
WKURXJKWKHJDWHV1RWHWKDWWKHJDWHDQDORJ\PDNHVVHQVHLQWHUPVRIWKHSURSRJDWLRQRIDVLJQDOQRWWKH
SURSDJDWLRQRIDYROWDJH$ORJLFDSSOLHGWRDQ\RIWKH)LOWHULQSXWVJXDUDQWHHVWKDWWKHRXWSXWZLOOEHDW
ORJLFEXWWKLVVKRXOGEHWKRXJKWRIDVWKHFORVLQJRIWKHJDWH$FKDQJHLQWKHLQSXWZLOOQRWPDNHLW
WKURXJKWRWKHRXWSXW7KHFLUFXLWGRHVQRWDOORZVLJQDOVWRSDVV+HQFHLWPDNHVVHQVHWRWKLQNRIWKHVH25
JDWHVDVFORVHGZKHQDUHJXODWRU\LQSXWLVDWORJLF
7KH$1'*DWH
7KH$1'JDWHLVDOVRDWZRLQSXWJDWH,WVV\PEROLV
)URP
7DEOH
ZHPD\LQIHUWKDW
z
,IERWKLQSXWWHUPLQDOVDUHDWORJLFWKHQWKHRXWSXWWHUPLQDOZLOOEHDWORJLF
7DEOH7UXWK7DEOHIRU;25
S
T
S;25T
z
,IHLWKHULQSXWWHUPLQDOLVDWORJLFWKHQWKHRXWSXWWHUPLQDOZLOOEHDWORJLF
,QWKHIROORZLQJFLUFXLWWKHORJLFYDOXHVDSSOLHGWRDOOWKH)LOWHULQSXWVPXVWHTXDORWKHUZLVHWKHRXWSXW
ZLOOEHDWORJLF,IDORJLFLVDSSOLHGWRHDFKRIWKH)LOWHULQSXWVWKHQWKHLQSXWORJLFYDOXHSDVVHVWKURXJK
WKHJDWHVDQGEHFRPHVWKHRXWSXWYDOXH
%RROHDQ&LUFXLWV
$1'25DQG127ORJLFJDWHVFDQEHXVHGWREXLOGXSDJUHDWYDULHW\RIORJLFFLUFXLWV)RUDQ\%RROHDQ
H[SUHVVLRQWKHUHLVDFRUUHVSRQGLQJFLUFXLW)RUH[DPSOHFRUUHVSRQGLQJWRWKH%RROHDQH[SUHVVLRQ
RQHFDQFRQVWUXFWWKHFLUFXLW
7KHWUXWKWDEOHIRUWKLVFLUFXLWLVWKHVDPHDVWKHWUXWKWDEOHRIWKH%RROHDQH[SUHVVLRQLWFRPHVIURP,WLV
JLYHQLQ
7DEOH
7KHWUXWKWDEOHIRUWKH%RROHDQRSHUDWRU;25LVVKRZQLQ
7DEOH
2QHFDQILQGD%RROHDQH[SUHVVLRQIRU
;25E\XVLQJWKHOLQHVRILWVWUXWKWDEOHWKDWKDYHDORJLFRXWSXW8VLQJWKHWDEOHZHILQGWZRVXFKOLQHV
RQHZKHUHS DQGT DQGRQHZKHUHS DQGT 7KHVHDUHWKHOLQHVIRUZKLFKWKHH[SUHVVLRQVS
$1'127TDQG127S$1'TDUHWUXH+HQFHWKHH[SUHVVLRQ
KDVWKHVDPHWUXWKWDEOHDV;25DQGPD\EHXVHGWRFRQVWUXFWDFLUFXLWIRU;25
7KH%RROHDQH[SUHVVLRQS25T$1'127S$1'TDOVRKDVWKHVDPHWUXWKWDEOH7KHUHIRUHWKH
ORJLFFLUFXLWZKLFKFRUUHVSRQGVWRWKLVH[SUHVVLRQDOVRZRUNVDVDQ;25FLUFXLW7KDWFLUFXLWORRNVOLNHWKLV
7KHVWDQGDUGV\PEROIRU;25LV
;25PD\EHLPSOHPHQWHGXVLQJDQ\FLUFXLWZKLFKKDVWKHFRUUHFWWUXWKWDEOHLQFOXGLQJWKHWZRMXVWVKRZQ
3URSDJDWLRQ'HOD\
6RPHHVVHQWLDOIHDWXUHVRIORJLFFLUFXLWEHKDYLRUDUHOHIWRXWRIDQ\GHVFULSWLRQEDVHGRQO\RQ%RROHDQ
H[SUHVVLRQVDQGWUXWKWDEOHV2QHVXFKIHDWXUHLVWKHSURSDJDWLRQGHOD\WKHWLPHUHTXLUHGIRUDFKDQJHLQDQ
LQSXWVLJQDOWRFDXVHDFKDQJHLQWKHRXWSXW7KHSURSDJDWLRQGHOD\RIDJDWHXVHGLQD0+]SURFHVVRU
IRUH[DPSOHPXVWEHOHVVWKDQQDQRVHFRQGV7KLVLVEHFDXVH0+]PHDQVPLOOLRQF\FOHVSHU
VHFRQGFSV6RWKHOHQJWKRIHDFKSURFHVVLQJF\FOHLV
VHFRQGZKLFKLVWKHVDPHDV
VHFRQGRUQDQRVHFRQGV
&RQVLGHULQJWKDWWKHH[HFXWLRQRIRQHSURFHVVLQJF\FOHPLJKWUHTXLUHDVLJQDOWRSDVVWKURXJKVD\ILYHVXFK
JDWHVLQVXFFHVVLRQWKHOLPLWFRXOGGURSWRQDQRVHFRQGVRUOHVV5HGXFLQJWKLVWLPHGHOD\LVRQHRIWKH
PDLQJRDOVLQFXUUHQWIDEULFDWLRQWHFKQRORJ\7KHOHVVWKHSURSDJDWLRQGHOD\WKHIDVWHUWKHFORFNVSHHGDW
ZKLFKDFLUFXLWFDQEHUXQ
$OVRLPSRUWDQWLVWKHDPRXQWRISRZHUGLVVLSDWHG:KHQPDQ\FLUFXLWVDUHSDFNHGWRJHWKHURQDFKLSWKH
WHPSHUDWXUHPD\LQFUHDVHWRXQDFFHSWDEOHOHYHOVXQOHVVWKHSRZHUGLVVLSDWHGE\HDFKFLUFXLWLVUHGXFHGWRD
YHU\ORZOHYHO5HGXFLQJSRZHUGLVVLSDWLRQLVDQRWKHUSULPDU\JRDORISURFHVVRUGHVLJQ
7KHDUFKLWHFWXUHSRLQWRIYLHZOHDYHVWKHVHSUREOHPVRXWRIWKHSLFWXUH)URPWKDWVWDQGSRLQWDOOZHQHHGWR
NQRZDERXWD%RROHDQFLUFXLWLVFRQWDLQHGLQLWVWUXWKWDEOH7KHDUFKLWHFWXUHSRLQWRIYLHZLVPRUHRIWHQ
VXLWDEOHLQFRPSXWHUVFLHQFHWKDQLQHOHFWULFDOHQJLQHHULQJ
$GGLWLRQ&LUFXLWV
)UHTXHQF\
&\FOH/HQJWK
+]
FSV
V
VHF
N+]
FSV
PV
0+]
FSV
V
*+]
FSV
QV
7KLVVHFWLRQVKRZVKRZDGGLWLRQLVGRQHXVLQJORJLFFLUFXLWV
&RQVLGHUWKHDGGLWLRQRIDQGDJDLQDQGREVHUYHWKDWLQHDFKFROXPQZHKDYHWZRGLJLWVWRDGGDORQJ
ZLWKDFDUU\GLJLWIURPWKHSUHFHGLQJFROXPQ
$QDGGLWLRQFLUFXLWZKLFKFDQGRWKHZRUNLQYROYHGLQRQHFROXPQRIVXFKDQDGGLWLRQLVFDOOHGDIXOODGGHU
,WSURGXFHVWKHVXPRIWKHWZRGLJLWVLQWKDWFROXPQDQGDFDUU\GLJLWIURPWKHSUHYLRXVFROXPQ,WDOVR
SURGXFHVDQRXWSXWFDUU\GLJLW7KHDGGLWLRQRIDQGDVVKRZQUHTXLUHVWKHXVHRIIRXUIXOODGGHUFLUFXLWV
%HFDXVHWKHELQDU\V\VWHPLVEHLQJXVHGWKH%RROHDQWUXWKYDOXHVDQGPD\EHXVHGDVELQDU\GLJLWV
7DEOH
VKRZVWKHWUXWKWDEOHIRUDIXOODGGHUFLUFXLW,WLVQRWKDUGWRFRQVWUXFWDIXOODGGHU7KH2XWSXW
6XPFLUFXLWFDQEHEXLOWIURPWZR;25FLUFXLWV7KH2XWSXW&DUU\FLUFXLWFDQEHEXLOWIURPWKUHH$1'VDQG
WZR25V6HH
)LJXUH
$IXOODGGHUKDVWKUHHLQSXWVDQGWZRRXWSXWVZKLFKWRJHWKHUIXQFWLRQDVRQH
FROXPQRIDQDGGLQJPDFKLQH
)LJXUH)XOO$GGHU&LUFXLW
7DEOH7UXWK7DEOHIRUD)XOO$GGHU
,QSXW'LJLW
,QSXW'LJLW
,QSXW&DUU\
2XWSXW6XP
2XWSXW&DUU\
$FLUFXLWZKLFKDGGVIRXUGLJLWELQDU\QXPEHUVUHTXLUHVIRXUIXOODGGHUVJDQJHGWRJHWKHU
7KLVLVZKDWWKHDGGLQJFLUFXLWVLQDIRXUELWSURFHVVRUORRNOLNH6KRZQKHUHLVWKHVDPHFDOFXODWLRQRI
WKLUWHHQSOXVVL[LOOXVWUDWHGDWWKHEHJLQQLQJRIWKLVVHFWLRQ,QELQDU\WKDWLVSOXV7KHUHVXOWLQJ
WRWDOLV7KHUHLVDOVRDQRXWSXWFDUU\YDOXHRI7KHLQSXWFDUU\LVQRWXVHGKHUH6XUSULVLQJO\HQRXJK
WKHUHLVDQHHGIRULWKRZHYHU:HZLOOVHHZKDWWKDWLVLQ
VHFWLRQ
,WLVRQHRIWKHFKDUDFWHULVWLFVRIDIRXUELWSURFHVVRUWKDWLWDGGVELQDU\QXPEHUVIRXUELWVDWDWLPH
$FRPSXWHUZLWKDIRXUELWSURFHVVRUZRXOGQRWEHOLPLWHGWRVPDOOQXPEHUDULWKPHWLFEXWLWVVRIWZDUH
ZRXOGQHHGWREUHDNODUJHQXPEHUVGRZQLQWRQXPEHUVQRELJJHUWKDQ
6HTXHQWLDO&LUFXLWV
,QDOOWKHFLUFXLWVVKRZQVRIDUWKHRXWSXWLVGHWHUPLQHGE\WKHLQSXWV%\XVLQJWKHWUXWKWDEOHVRIWKH
FRPSRQHQWJDWHVRQHFDQFRQVWUXFWDWUXWKWDEOHIRUWKHZKROHFLUFXLW,WPLJKWVHHPWKDWWKLVVKRXOGEHWKH
FDVHZLWKDOOORJLFFLUFXLWV+RZHYHULIDQRXWSXWLVIHGEDFNDURXQGWRDQLQSXWWKHQDYLFLRXVFLUFOHLV
LQWURGXFHGLQWRWKHSURFHVVRIGHWHUPLQLQJWKHWUXWKWDEOH&LUFXLWVZLWKIHHGEDFNORRSVDUHFDOOHGVHTXHQWLDO
FLUFXLWV
&LUFXLWVZLWKRXWIHHGEDFNORRSVDUHQRWFDSDEOHRIVWRULQJORJLFYDOXHV7KHRXWSXWRID%RROHDQFLUFXLWLVD
IXQFWLRQRILWVLQSXWVLWVSUHVHQWLQSXWV7KDWPHDQVIRUH[DPSOHLI\RXWULHGWRXVHD%RROHDQFLUFXLWDVD
PHPRU\WKHQQRPDWWHUZKDW\RXGHFLGHGXSRQDVWKHPHPRU\IHWFKFRPPDQGWKLVLQSXWZRXOGDOZD\V
SURGXFHWKHVDPHRXWSXWQDPHO\WKHRXWSXWVSHFLILHGE\WKHWUXWKWDEOHVRLWZRXOGQRWEHDWUXHPHPRU\
IHWFK7KHRXWSXWIURPDWUXHPHPRU\IHWFKZRXOGGHSHQGXSRQZKDWZDVVWRUHGDWVRPHWLPHLQWKHSDVW
6HTXHQWLDOFLUFXLWVDUHLPSRUWDQWEHFDXVHWKH\FDQVWRUHORJLFYDOXHV
$)OLSIORS
)LJXUH
VKRZVDQH[DPSOHRIDFLUFXLWFDOOHGDIOLSIORS7KH6LQWKHILJXUHVWDQGVIRUVHWDQGWKH5VWDQGV
IRUUHVHW7KHRXWSXWRIWKLVFLUFXLWPD\EHVHWLI6 DQG5 ,QWKLVFDVHWKH$1'JDWHIHGE\WKH5
LQSXWLVIRUFHGWRRXWSXWD+HQFHERWKLQSXWVRQWKHRWKHU$1'JDWHDUH+HQFHLWVRXWSXWLVDQGWKH
ILQDORXWSXWLV
)LJXUH)OLSIORS
,I6 DQG5 WKHVLWXDWLRQLVMXVWUHYHUVHGDQGWKHILQDORXWSXWLV
+RZHYHULI6 DQG5 WKHRXWSXWLVQRWGHWHUPLQHGE\WKHWUXWKWDEOHV7KHIHHGEDFNORRSVPDNHWKDW
LPSRVVLEOH,WWXUQVRXWKRZHYHUWKDWLIWKH6 5 VWDWHZDVHQWHUHGIURPHLWKHUWKHVHWRUWKHUHVHWVWDWH
WKHQWKHILQDORXWSXWLVOHIWDORQH,WGRHVQRWFKDQJH
$/DWFK
)LJXUH
VKRZVDQH[DPSOHRIDFLUFXLWFDOOHGDODWFK7KLVFLUFXLWVWRUHVRQHELW,WLVFDOOHGDODWFKEHFDXVH
LWODWFKHVRQWRDYDOXH
)LJXUH/DWFK
7KH)UHH]H&RS\ODEHOLQWKLVILJXUHXVHVWKH,QWHOFRQYHQWLRQWKDWZKHQDVLJQDOLVODEHOHGZLWKD
PHDQLQJIXOZRUGWKHQWKHPHDQLQJWUXWKIXOO\DSSOLHVZKHQWKHOLQHLVDWORJLFXQOHVVWKHODEHOKDVD
DSSHQGHGDQGWKHQWKHRSSRVLWHLVWKHFDVH6RWKH)UHH]H&RS\ODEHOWHOOVXVWKDWORJLFPHDQV)UHH]HDQG
ORJLFPHDQV&RS\
z
:KHQWKH)UHH]H&RS\OLQHLV]HURWKH25JDWHVDUHRSHQHGDQGWKHFLUFXLWLVWXUQHGLQWRDIOLSIORS
ZKHUHWKHLQSXWLVHLWKHUVHWRUUHVHW7KH127JDWHPDNHVWKH6DQG5LQSXWVRSSRVLWHWRHDFKRWKHU
7KHLQSXWYDOXHLVFRSLHGWRWKHRXWSXW
z
:KHQWKH)UHH]H&RS\OLQHEHFRPHVERWK25JDWHVDUHIRUFHGWRDQGWKLVIUHH]HVWKHRXWSXW
:KHQWKHRXWSXWLVIUR]HQVXEVHTXHQWFKDQJHVLQWKHLQSXWKDYHQRHIIHFWRQWKHFLUFXLW7KHRXWSXW
YDOXHUHPDLQVMXVWZKDWLWZDVWKHODVWWLPHWKH)UHH]H&RS\OLQHWXUQHGIURPWRLHWKHODVWWLPH
LWIUR]H
7KDWRXWSXWYDOXHLVLQVWRUDJH
5HJLVWHUV
)RXUODWFKHVXVHGWRJHWKHULQSDUDOOHOFDQVWRUHIRXUELWV7KLVLVDQH[DPSOHRIDUHJLVWHU$IRXUELWUHJLVWHU
LVDFROOHFWLRQRIFLUFXLWVWKDWFDQVWRUHIRXUELWV'LIIHUHQWUHJLVWHUVLQDSURFHVVRUGRQRWKDYHWRVWRUHWKH
VDPHQXPEHURIELWVEXWLWLVHDVLHUWRPDNHWKLQJVZRUNZKHQWKH\GR7KHQXPEHURIELWVLQDW\SLFDO
UHJLVWHULVRQHRIWKHDWWULEXWHVRIDSURFHVVRUZKLFKGHWHUPLQHVZKHWKHULWLVFDOOHGDIRXUELWSURFHVVRUDQ
HLJKWELWSURFHVVRURUZKDWHYHU
7KHFRQWHQWVRIDIRXUELWUHJLVWHUDUHYHU\QDWXUDOO\VSHFLILHGXVLQJDIRXUGLJLWELQDU\QXPEHU7KHIRXU
GLJLWELQDU\QXPEHUVDUHWKHLQWHJHUVIURPWKURXJK$QHLJKWELWUHJLVWHUKROGVDQLQWHJHUIURP
WKURXJK
:HVHHWKDWWKHPRVWQDWXUDOZD\RIVSHFLI\LQJWKHFRQWHQWVRIDUHJLVWHUOHDYHVQRURRPIRUQHJDWLYH
QXPEHUV7KHUHSUHVHQWDWLRQRIQHJDWLYHQXPEHUVZLOOEHGLVFXVVHGLQWKHQH[WVHFWLRQ
%LW6LJQLILFDQFH
%HFDXVHELQDU\QXPEHUVDUHXVHGWRGHVFULEHWKHFRQWHQWVRIUHJLVWHUVDQGPHPRU\ORFDWLRQVWKHQXPHULFDO
FRQFHSWRIDVLJQLILFDQWGLJLWLVXVHIXOLQVLQJOLQJRXWLQGLYLGXDOELWVRIDVSHFLILFVWRUDJHORFDWLRQ)RU
H[DPSOHLIDIRXUELWUHJLVWHUKROGVWKHELQDU\QXPEHUWKHQWKHIRXUGLJLWVLQRUGHURIVLJQLILFDQFHDUH
DQG6RWKHPRVWVLJQLILFDQWGLJLWLVDQGWKHOHDVWVLJQLILFDQWGLJLWLV7KHWKUHHPRVWVLJQLILFDQW
GLJLWVDUH7KHWKUHHOHDVWVLJQLILFDQWGLJLWVDUH6RPHWLPHVLQWKLVWH[WWKHPRVWVLJQLILFDQWELWVZLOO
EHUHIHUUHGWRDVWKHWRSRUXSSHUELWVDQGWKHOHDVWVLJQLILFDQWDVWKHERWWRPRUORZHUELWV
1HJDWLYH1XPEHU5HSUHVHQWDWLRQ
7KHFXVWRPDU\ZD\WRUHSUHVHQWDQHJDWLYHQXPEHULVWRSUHSHQGDPLQXVVLJQ3XWWLQJDLQIURQWRID
PDNHVD7KLVPHWKRGRIUHSUHVHQWLQJQHJDWLYHVLVFDOOHGVLJQHGPDJQLWXGHUHSUHVHQWDWLRQ,WFDQEH
LPSOHPHQWHGRQWKHFRPSXWHUE\DOORFDWLQJRQHELWRIVWRUDJHIRUDVLJQELW7RFKDQJHWKHVLJQRIDQXPEHU
WKDWLVVWRUHGXVLQJVLJQHGPDJQLWXGHUHSUHVHQWDWLRQRQHFDQVLPSO\IOLSWKHVLJQELW6LJQHGPDJQLWXGH
UHSUHVHQWDWLRQLVQRWJHQHUDOO\XVHGIRULQWHJHUVRQWKHFRPSXWHU7KHUHDVRQLVWKDWLQRUGHUWRGRDGGLWLRQ
ZLWKVLJQHGPDJQLWXGHUHSUHVHQWDWLRQ\RXQHHGWRGRLWWKHZD\LWLVWDXJKWWR\RXQJVWHUV
6LJQHG0DJQLWXGH$GGLWLRQ
7RDGG[DQG\
&DVH,,I[DQG\DUHERWKSRVLWLYHMXVWDGGDQGPDNH\RXUDQVZHUSRVLWLYH
&DVH,,,I[DQG\DUHERWKQHJDWLYHUHPRYHWKHQHJDWLYHVLJQVDGGWKHQXPEHUVDQGWDFND
PLQXVVLJQRQWRWKHUHVXOW
&DVH,,,,I[DQG\KDYHGLIIHUHQWVLJQVVXEWUDFWWKHVPDOOHUPDJQLWXGHIURPWKHODUJHU
PDJQLWXGHDQGLIWKHODUJHUPDJQLWXGHKDGDPLQXVVLJQWKHQWDFNWKLVRQWRWKHUHVXOW
,PSOHPHQWLQJVLJQHGPDJQLWXGHDGGLWLRQZLWKORJLFFLUFXLWVRQDFKLSZRXOGEHDWHUULEOHZDVWHRI
WUDQVLVWRUV
(DV\$GGLWLRQ
7KHPHWKRGZKLFKLVDFWXDOO\XVHGZLWKORJLFFLUFXLWVWRDGG[DQG\ZRUNVOLNHWKLV
3D\QRDWWHQWLRQWRZKHWKHU[DQG\DUHSRVLWLYHRUQHJDWLYHMXVWDGGWKHP
6XFKDPHWKRGZRXOGVHHPWREHQRPHWKRGDWDOO%XWLWZRUNV,WZRUNVEHFDXVHDVSHFLDOV\VWHPIRU
UHSUHVHQWLQJQHJDWLYHVLVXVHGDQGEHFDXVHDUHJLVWHUKDVDILQLWHVL]HOLNHDQRGRPHWHU
2GRPHWHU$ULWKPHWLF
$QRGRPHWHULVDQDGGLQJPDFKLQH,WDGGVXSWKHPLOHVWKDW\RXGULYH0LOHDJHLVDOZD\VFRQVLGHUHGWRKDYH
DSRVLWLYHYDOXH:RXOGDQHJDWLYHYDOXHLPSO\GULYLQJEDFNZDUGVRUZKDW"+RZHYHUFRQVLGHUWKH
IROORZLQJHTXDWLRQZKLFKZHZRXOGRUGLQDULO\WKLQNRIDVPDNLQJVHQVHRQO\IRUQHJDWLYHQXPEHUV
7KHREYLRXVVROXWLRQLV[ +RZHYHUWKHUHLVDQRGRPHWHULQWHUSUHWDWLRQRIWKLVHTXDWLRQDVZHOO
6XSSRVH\RXGULYHPLOHVLQ\RXUFDUDQGWKHRGRPHWHUUHDGVZKHQ\RXILQLVKWKHQZKDWGLGLWUHDG
ZKHQ\RXEHJDQ",WPXVWKDYHUHDG6LPLODUO\LI\RXKDYHDFDUZKRVHRGRPHWHUUHDGVPLOHVDQG
\RXGULYHLWPLOHVWKHQWKHRGRPHWHUVKRXOGUHDGPLOHVZKHQ\RXILQLVK7KHSRLQWKHUHLVWKDW
DFWVMXVWOLNHZKHQDGGHGRQWKHRGRPHWHU
7DEOH
VKRZVZKDWRGRPHWHUQHJDWLYHVORRNOLNH
1RWLFHWKDWWRJHWWKHQXPEHUWKDWZRUNVDVWKHQHJDWLYHRIDQXPEHU[\RXVXEWUDFW[IURP
$ULWKPHWLFRQWKHRGRPHWHUZRUNVWKLVZD\EHFDXVHWKHRGRPHWHUWXUQVRYHUDWPLOHV&RPSXWHU
UHJLVWHUVWXUQRYHUDOVR²EXWQRWDW
5HJLVWHU$ULWKPHWLF
$IRXUELWUHJLVWHUWXUQVRYHUDWELQDU\
7KHWDEOHRIQHJDWLYHVIRUDIRXUELWUHJLVWHUFDQ
HDVLO\EHOLVWHGFRPSOHWHO\6HH
7DEOH
7KHRQO\GLIIHUHQFHEHWZHHQWKLVWDEOHDQGWKHRGRPHWHUWDEOHLV
WKDWLVDORWVPDOOHUWKDQ$VZLWKWKHRGRPHWHU\RXFDQXVHVXEWUDFWLRQLQVWHDGRIWKHWDEOHWR
ILQGWKHQXPEHUZKLFKZRUNVDVWKHQHJDWLYHRIVRPHQXPEHU[,QWKHFDVHRIDIRXUELWUHJLVWHU\RX
VXEWUDFW[IURPLQVWHDGRIIURP2WKHUZLVHLWLVWKHVDPH
%XWLQRQHUHVSHFW
7DEOH
LVDOLWWOHDODUPLQJ)RUH[DPSOHLWJLYHVXVWKHIDFWWKDWZRUNVWKHVDPHDV
7KLVPHDQVZHQRZKDYHDVHULRXVDPELJXLW\,IDIRXUELWUHJLVWHUFRQWDLQVZHFDQQRWWHOOZKHWKHU
WKLVDFWXDOO\PHDQVRU6RPHFRQYHQWLRQLVQHHGHG7KHFRQYHQWLRQWKDWLVXVHGLVWRWDNHWKHILUVWELW
DVDNLQGRIVLJQELW:KHQWKHILUVWELWLVWKHQXPEHULVSRVLWLYHRU]HUR:KHQWKHILUVWELWLVWKH
QXPEHULVQHJDWLYH7KHUHVXOWLQJV\VWHPLVFDOOHGWKHWZRVFRPSOHPHQWV\VWHP:KHQWKHWZRV
FRPSOHPHQWV\VWHPLVXVHGWKHDPELJXLW\LV
7DEOH2GRPHWHU1HJDWLYHV
HWF
7DEOH)RXU%LW5HJLVWHU1HJDWLYHV$PELJXRXV
'HFLPDO
%LQDU\
1RWLFHWKDWDOWKRXJKWKHILUVWELWLQDWZRVFRPSOHPHQWV\VWHPLVDVLJQELWLWLVQRWMXVWDVLJQELW)RU
H[DPSOHLIZHFKDQJHWKHVLJQELWRQZHJHW7KLVFKDQJHVWRQRW
6LJQHGYV8QVLJQHG1XPEHUV
,IDOODULWKPHWLFGRQHRQFRPSXWHUVZHUHGRQHXVLQJWZRVFRPSOHPHQWUHSUHVHQWDWLRQWKHUHZRXOGQHYHUEH
DQ\SUREOHPLQWHUSUHWLQJWKHFRQWHQWVRIDQXPHULFDOUHJLVWHU%XWXQIRUWXQDWHO\WKLVLVQRWWKHFDVH
6RPHWLPHVDULWKPHWLFLVGRQHDQGLWLVDVVXPHGWKDWWKHQXPEHUVDUHUHSUHVHQWHGXVLQJWKHSODLQELQDU\
V\VWHP6RZKHQDIRXUELWUHJLVWHUKDVDLQLWGRHVWKLVPHDQRU",IZHDUHXVLQJWZRV
FRPSOHPHQWWKHQZHNQRZLWLV%XWZHFRXOGEHXVLQJMXVWSODLQELQDU\7KHQZHKDYH&RPSXWLQJ
SUDFWLFHLVQRWFRQVLVWHQWDERXWWKLV%RWKV\VWHPVDUHXVHG,WFRXOGEHHLWKHURQH,WLVXSWRWKHVRIWZDUHWR
PDNHWKHGLVWLQFWLRQ7KHWHUPLQRORJ\VLJQHGYVXQVLJQHGLVRIWHQXVHG6LJQHGLQWHJHUVDUHWZRV
FRPSOHPHQWLQWHJHUV8QVLJQHGLQWHJHUVDUHSODLQELQDU\LQWHJHUV
$OWKRXJKZKHQZHDUHDGGLQJQXPEHUVLWGRHVQWPDWWHULIWKHQXPEHUVDUHVLJQHGRUXQVLJQHG²WKH
DGGLQJKDUGZDUHZRUNVHLWKHUZD\²PDQ\RWKHURSHUDWLRQVUHTXLUHGLIIHUHQWLPSOHPHQWDWLRQVGHSHQGLQJ
RQZKHWKHUWKHRSHUDQGLVLQWHQGHGDVDVLJQHGRUDQXQVLJQHGQXPEHU&RQVLGHULQHTXDOLW\WHVWLQJ6XSSRVH
IRXUELWKDUGZDUHLVDVNHGWRGHWHUPLQHZKHWKHULVWUXHRUQRW:KLOHUHSUHVHQWVLQERWK
WKHVLJQHGDQGWKHXQVLJQHGV\VWHPVLVDVDVLJQHGQXPEHUDQGDVDQXQVLJQHGQXPEHU7KH
VLJQHGLQWHUSUHWDWLRQ\LHOGVDWUXHZKHUHDVWKHXQVLJQHGLQWHUSUHWDWLRQ\LHOGVDIDOVH7KH
KDUGZDUHPXVWPDNHDGLIIHUHQWUHVSRQVHLQWKHWZRFDVHV7KLVPHDQVWKDWDVLQJOHOHVVWKDQFRPPDQG
FDQQRWZRUN7ZRDUHQHHGHGRQHIRUVLJQHGQXPEHUVDQGRQHIRUXQVLJQHGQXPEHUV7KLVLVVXHFRPHVXS
RYHUDQGRYHUDJDLQLQDVVHPEO\ODQJXDJH
,QWKH&ODQJXDJHLQWHJHUVPD\EHGHFODUHGDV
XQVLJQHGLQW
RUDV
VLJQHGLQW
7KHXQVSHFLILHG
LQW
GHFODUDWLRQPHDQVWKHVDPHDV
VLJQHGLQW
6XEWUDFWLRQ8VLQJ1HJDWLRQ
7DEOH)RXU%LW7ZRV&RPSOHPHQW5HSUHVHQWDWLRQ
'HFLPDO
%LQDU\
7KLVVHFWLRQH[SODLQVKRZVXEWUDFWLRQPD\EHGRQHXVLQJWKHFLUFXLWVGHVFULEHGVRIDU
7ZRV&RPSOHPHQWDWLRQ
6LQFHZHKDYHDQDGGHUWKDWZRUNVZLWKQHJDWLYHVZHVKRXOGEHDEOHWRXVHLWWRGRVXEWUDFWLRQVVXFKDV
VLQFH
%XWWKHUHLVDSUREOHP&RQYHUWLQJWRLVQRWDVHDV\DVMXVWVWLFNLQJRQDPLQXVVLJQRUIOLSSLQJDELW,ILW
ZHUHWDEOHVVXFKDV
7DEOH
DQG
7DEOH
ZRXOGQRWEHQHFHVVDU\$OWKRXJKZHGRKDYHDIRUPXODZKLFK
H[SODLQVWKHVHWDEOHVLWLVXQIRUWXQDWHO\EDVHGRQVXEWUDFWLRQ)RUH[DPSOHDFFRUGLQJWRWKHIRUPXODIRUWKH
IRXUELWWDEOHWRJHWWKHQHJDWLYHRI\RXVXEWUDFWIURP%XWVLQFHRXUJRDOLVWRILQGDZD\WRGR
VXEWUDFWLRQZHDSSHDUWREHWUDSSHGLQDYLFLRXVFLUFOH7KHVLWXDWLRQLVQRWDVEDGDVLWVHHPVKRZHYHU
6XEWUDFWLQJIURPLQELQDU\FDQEHGRQHHYHQLIZHGRQWNQRZKRZWRVXEWUDFWDQGHYHQWKRXJKWKH
ELQDU\UHSUHVHQWDWLRQRIUHTXLUHVRQHPRUHELWWKDQRXUIRXUELWUHJLVWHUVFDQKROG:HDUHVDYHGE\WZR
IDFWV
L [ [O
LL 6XEWUDFWLQJIURPFDQEHGRQHE\MXVWIOLSSLQJWKHELWV1RWLFHZKDWKDSSHQVZKHQZHVXEWUDFW
IURPLQELQDU\
7KHELWVLQDUHIOLSSHGDQGZHJHW:HKDYHKDUGZDUHWKDWFDQIOLSELWV:HFDQIHHGHDFKELWLQWR
D127JDWH$GGLQJWKHQJLYHVWKHUHVXOW
7KHXQXVHGLQSXWFDUU\RQWKHDGGLWLRQFLUFXLWFRPHVLQWRLWVRZQKHUH6HH
VHFWLRQ
,WVMXVWZKDWV
QHHGHGWRDGGWRDWRWDO7KHSURFHVVRIIOLSSLQJWKHELWVDQGDGGLQJRQHLVFDOOHGWZRVFRPSOHPHQWDWLRQ,W
VXEWUDFWVDQXPEHUIURPWKHWXUQRYHUYDOXH7KHWXUQRYHUYDOXHIRUDQQELWWZRVFRPSOHPHQWQXPEHULV
Q
,IQ WKLVYDOXHLV
6RZHPD\GRDVDQDGGLWLRQ
RUWRUHDOO\VHHKRZWKHFRPSXWHUGRHVLW
7KHILQDOFDUU\ELWLVLJQRUHG7KDWLVKRZDFRPSXWHUVXEWUDFWVIURP
7KHXVHRIWKHZRUGFRPSOHPHQWLVMXVWLILHGE\WKHIDFWWKDW
1RWHWKDWWKLVIDLWKIXOO\UHIOHFWVWKHIDFWWKDW
7ZRV&RPSOHPHQWDWLRQLQ+H[
7KHWZRVFRPSOHPHQWSURFHVVLVGRQHE\IOLSSLQJWKHELWVDQGDGGLQJRQH,IZHWKLQNRIIOLSSLQJWKHELWVRI
DKH[GLJLWZHVHHWKDWWKLVFDQEHGRQHE\VXEWUDFWLQJIURP7RGRWKHWZRVFRPSOHPHQWRIDQXPEHULQ
KH[WKHQZHFDQVXEWUDFWHDFKRILWVGLJLWVIURPILIWHHQDQGWKHQDGGRQH)RUH[DPSOHJLYHQDQHLJKWELW
QXPEHU+
+HQFHWKHWZRVFRPSOHPHQWRI+LV''+2QWKHRWKHUKDQGLIZHXVHWKHIDFWWKDWILQGLQJWKHWZRV
FRPSOHPHQWLVUHDOO\VXEWUDFWLRQIURPWKHWXUQRYHUYDOXHZHFDQMXVWGRWKHVXEWUDFWLRQ
&RQYHUVLRQV
:KHQGHEXJJHUVGLVSOD\UHJLVWHUFRQWHQWVIRUXVQHJDWLYHVZLOOEHVKRZQWRXVLQKH[&RQVHTXHQWO\LWLV
ZRUWKZKLOHWREHFRPHKDQG\ZLWKWZRVFRPSOHPHQWYDOXHVLQKH[6XSSRVHZHDUHVKRZQWKHELWYDOXH
))+DQGZHZRXOGOLNHWRNQRZZKDWYDOXHLWUHSUHVHQWV)LUVWZHREVHUYHWKDWLIZHWDNHWKLVWREHD
VLJQHGQXPEHUWKHQLWLVQHJDWLYHVLQFHLWVILUVWELWLV²LIWKHILUVWKH[GLJLWLVDQ\RIWKHKH[GLJLWV
$%&'(RU)WKHQWKHILUVWELQDU\GLJLWLV7RILQGWKHFRUUHVSRQGLQJSRVLWLYHQXPEHUZHFDQ
SHUIRUPWKHWZRVFRPSOHPHQWLQKH[
$QG%(+LVî &RQVHTXHQWO\WKHUHSUHVHQWHGYDOXHLV
<RXFRXOGDOVRFRQYHUWHYHU\WKLQJWRELQDU\WDNHWKHWZRVFRPSOHPHQWDQGWKHQFRQYHUWWRGHFLPDO2I
FRXUVH\RXFRXOGDOVRFRQYHUW))+WRGHFLPDODQGVXEWUDFWWKHUHVXOWIURP3UREDEO\ZRUNLQJLQ
KH[DVPXFKDV\RXFDQLVWKHHDVLHVW
3ODFHKROGLQJ7ZRV&RPSOHPHQW
7ZRVFRPSOHPHQWFDQEHWKRXJKWRIDVDSODFHKROGLQJV\VWHP,IWKHSODFHYDOXHRIWKHPRVWVLJQLILFDQWELW
LVWKRXJKWRIDVVWDQGLQJIRUWKHQHJDWLYHRILWVRUGLQDU\ELQDU\YDOXHWKHQWKLV\LHOGVDSODFHYDOXH
LQWHUSUHWDWLRQIRUWZRVFRPSOHPHQWQXPEHULQJ
7DEOH
VKRZVWKHSODFHYDOXHVLQWKHIRXUELWWZRV
FRPSOHPHQWV\VWHP8VLQJWKHWDEOHZHVHHWKDWFDQEHH[SUHVVHGDV
0HPRU\&LUFXLWV
7KHODWFKFLUFXLWVKRZQLQ
)LJXUH
KDVWKHSURSHUW\WKDWLIDORJLFLVDSSOLHGWRWKH)UHH]H&RS\OLQH
WKHQWKHYDOXHRQWKH,QSXWSURSDJDWHVWKURXJKWRWKH2XWSXW2QWKHRWKHUKDQGLIDORJLFLVDSSOLHGWRWKH
)UHH]H&RS\OLQHWKHQWKH2XWSXWVLJQDOLVKHOGWRZKDWHYHUYDOXHLWKDGDWWKHWLPHRIWKHIUHH]H7KLV
YDOXHLVLQVWRUDJHDQGWKHLQSXWLVLJQRUHG
7RVHHKRZWKLVFLUFXLWPLJKWVHUYHDVRQHELWRIDPHPRU\FLUFXLWLPDJLQHPDQ\RIWKHVHFLUFXLWVDUUDQJHG
LQDUHFWDQJOHHDFKURZIRUPLQJDZRUGRIPHPRU\(DFKURZZRXOGUHVSRQGWRDVHOHFWLRQVLJQDOSLFNLQJ
WKDWURZRXWIURPDOOWKHRWKHUURZVLQPHPRU\7KHPHPRU\ZRXOGEHUHTXLUHGWRUHPDLQGRUPDQW
ZKHQHYHUWKHVHOHFWLRQVLJQDOZDVQRWSUHVHQW7RXVHWKLVFLUFXLWDVRQHELWRIDPHPRU\OHWXVVXSSRVHZH
KDYHD:5FRQWUROVLJQDODQGDVHOHFWLRQVLJQDO6HO:VWDQGVIRUZULWHZKLFKPHDQVWKDWWKHSURFHVVRU
ZDQWVWRZULWHWRWKHPHPRU\FLUFXLW5VWDQGVIRUUHDGDQGPHDQVWKDWWKHSURFHVVRUZDQWVWRUHDGIURPWKH
PHPRU\FLUFXLW$OOWKHFLUFXLWVLQWKHHQWLUHPHPRU\ZLOOEHFRQQHFWHGWRWKHVDPH:5VLJQDOEXWRQO\
WKHFLUFXLWVLQWKHVDPHZRUGDUHFRQQHFWHGWRDVLQJOH6HOVLJQDO
7DEOH)RXU%LW7ZRV&RPSOHPHQW3ODFH9DOXHV
V
V
V
V
%LQDU\
'HFLPDO
:KHQ6HOLVWKH127JDWHRXWSXWVDZKLFKIUHH]HVWKHFLUFXLW:KHQ6HOLVDQGWKH:5LQSXWLV
PHDQLQJWKHSURFHVVRUZDQWVWRUHDGWKHQDJDLQWKHFLUFXLWUHPDLQVIUR]HQ:KHQ6HOLVDQGWKH:5LV
WKHQWKH127JDWHRXWSXWVDZKLFKFDXVHVWKH'DWD,QWREHVWRUHG
7KLVFLUFXLWZRXOGZRUNDOULJKWH[FHSWIRUWKHIDFWWKDWWKHQXPEHURI'DWDZLUHVIRUWKHHQWLUHPHPRU\LVWKH
VDPHDVWKHQXPEHURIELWVLQRQHZRUG)RUH[DPSOHWKLVPHDQVWKDWWKHOHDVWVLJQLILFDQWELWRIWKHZRUG
PXVWVKDUHLWV'DWD2XWZLUHZLWKWKHFRUUHVSRQGLQJ'DWD2XWZLUHIURPHYHU\RWKHUZRUGLQPHPRU\DV
ZHOODVZLWKWKHFRUUHVSRQGLQJ'DWD,QZLUH7KHVDPHJRHVIRUHDFKRIWKHRWKHUELWV$PHPRU\ZLWKIRXU
ELWZRUGVKDVRQO\IRXUGDWDZLUHVUHJDUGOHVVRIKRZPDQ\ZRUGVLWKDV7RDYRLGFDXVLQJPDVVLYHFRQIOLFWV
FLUFXLWVZKLFKKDYHZKDWLVFDOOHGDWULVWDWHRXWSXWDUHXVHG
7UL6WDWH2XWSXWV
)LJXUH
VKRZVDJHQHULFORJLFJDWH7KHRXWSXWRIWKLVJDWHFDQEHVZLWFKHGHLWKHUWRWKHSRVLWLYHRUWKH
QHJDWLYHSRZHUWHUPLQDO%HFDXVHLWVRXWSXWKDVWZRSRVVLEOHYDOXHVLWLVFDOOHGDWZRVWDWHJDWH
)LJXUH
VKRZVDJHQHULFWULVWDWHORJLFJDWH,WVRXWSXWKDVWKUHHSRVVLEOHYDOXHV7KHRXWSXWRIWKLVJDWHFDQEHD
ORJLFRUDORJLFEXWWKHRXWSXWFDQDOVREHVZLWFKHGWRDGLVFRQQHFWHGVWDWHVRWKDWWKHRXWSXWLVQRW
KRRNHGXSWRDQ\WKLQJ7KLVLVVRPHWLPHVUHIHUUHGWRDVDGRQWFDUHVWDWHDQGLVVRPHWLPHVGHQRWHGE\WKH
OHWWHU;:KHQDORJLFJDWHVZLWFKHVWRWKLVVWDWHLWUHOHDVHVFRQWURORYHULWVRXWSXW,IWKHUHLVFRQIOLFWRQWKH
KRUL]RQVZLWFKLQJWRWKLVVWDWHLVDJRRGZD\WRDYRLGLW$VLPSOHWULVWDWHFLUFXLWLVWKHWULVWDWHEXIIHU
ZKRVHWUXWKWDEOHLVJLYHQLQ
7DEOH
7KHV\PEROIRUWKLVFLUFXLWLV
)LJXUH$7UL6WDWH/RJLF*DWH
7DEOH7UXWK7DEOHIRU7UL6WDWH%XIIHU
&RQWURO
,QSXW
2XWSXW
;
;
:KHQDWULVWDWHEXIIHULVDGGHGWRWKHODWFKDVVKRZQLQ
)LJXUH
WKHGDWDZLUHFDQEHVKDUHGE\WKHLQSXW
DQGWKHRXWSXW7KHSURFHVVRURIFRXUVHQHHGVDWULVWDWHEXIIHURQLWVHQGWRR7KLVFLUFXLWKDVRQO\WKUHH
H[WHUQDOFRQQHFWLRQV6XSSRVHZHUHSUHVHQWLWDVIROORZVDVVKRZQLQ
)LJXUH
)RXURIWKHVHFLUFXLWVXVHG
LQSDUDOOHOFRXOGVWRUHIRXUELWVDOOXQGHUWKHFRQWURORIWKHVDPHWZRVLJQDOV:5DQG6HO
)LJXUH$2QH%LW0HPRU\&LUFXLW
)LJXUH2QH%LW0HPRU\
6XSSRVHZHUHSUHVHQWDIRXUELWPHPRU\OLNHWKLV
)LJXUH
VKRZVDPHPRU\FRQVLVWLQJRIIRXURIWKHVHFLUFXLWV7ZRDGGUHVVZLUHVVXIILFHWRDGGUHVVWKLV
PHPRU\7KLVPHPRU\FLUFXLWKDVIRXUZRUGV(DFKZRUGKROGVIRXUELWV7KHGDWDZLUHV'2''DQG
'DUHDOOVKDUHG7KHDGGUHVVZLUHV$DQG$OFRQWUROWKHIRXUGLIIHUHQW6HOLQSXWV7KHDGGUHVVZLUHVVHOHFW
ZKLFKRIWKHIRXU6HOZLUHVLVVHOHFWHG7KHRWKHUWKUHHZLOOKDYHWKHYDOXH,WLVQRWSRVVLEOHWRWXUQRQWZR
DWDWLPH
)LJXUH)RXU:RUG0HPRU\(DFK:RUG+ROGV)RXU%LWV
,IZHLPDJLQHWKLVDVWKHPHPRU\RIDWLQ\OLWWOHFRPSXWHUWKHQWKLVFRPSXWHUZRXOGKDYHDIRXUELWGDWD
EXVDWZRELWDGGUHVVEXVDQGDRQHELWFRQWUROEXV7RIHWFKDQLWHPIURPPHPRU\WKHSURFHVVRUIRUWKLV
OLWWOHFRPSXWHUZRXOGSXWLWV:5SLQDWORJLFDQGDWZRELWDGGUHVVRQWKHDGGUHVVEXV7KLVZRXOG
DFWLYDWHWKH6HOVLJQDOIRUH[DFWO\RQHZRUGRIPHPRU\,IZHLPDJLQHDIHWFKH[HFXWHF\FOHLQSURJUHVVWKH
SURFHVVRUZRXOGQHHGDWZRELWUHJLVWHUWRNHHSWUDFNRIWKHDGGUHVVRIWKHLQVWUXFWLRQLWZDVH[HFXWLQJ$OO
SURFHVVRUVSHUIRUPLQJWKHIHWFKH[HFXWHF\FOHQHHGVXFKDUHJLVWHU,WLVRIWHQFDOOHGWKH3URJUDP&RXQWHU
,Q,QWHOPDFKLQHVLWLVFDOOHGWKH,QVWUXFWLRQ3RLQWHU
'HILQLWLRQRI0HPRU\&DSDFLW\
$Q\SK\VLFDOPHPRU\LVDQREMHFWRUGHYLFHZKLFKLVVWDEOHLQPRUHWKDQRQHVWDWH,WVFDSDFLW\LVWKHQXPEHU
RILWVVWDEOHVWDWHV6LQFHDFRPSXWHUPHPRU\LVODLGRXWDVDUHFWDQJOHRIREMHFWVZLWKWZRVWDEOHVWDWHVHDFK
WKHQXPEHURIVWDEOHVWDWHVLQWKHPHPRU\LV
OîZ
ZKHUHODQGZDUHWKHOHQJWKDQGZLGWKRIWKHUHFWDQJOHO
LVDOVRFDOOHGWKHQXPEHURIZRUGVDQGZLVWKHZLGWKRIHDFKZRUGLQELWV)RUFRQYHQLHQFHWKHFDSDFLW\LV
RIWHQJLYHQLQELWVDVMXVWOîZLHWKHEDVHWZRORJDULWKPRIWKHQXPEHURIVWDEOHVWDWHV7KHFDSDFLW\LQ
E\WHVRIFRXUVHLVRQHHLJKWKRIWKHFDSDFLW\LQELWV
65$0YV'5$0
:KHQPHPRU\FLUFXLWVDUHEXLOWRXWRIORJLFFLUFXLWVLWLVFDOOHGVWDWLFPHPRU\RU65$00HPRU\FLUFXLWV
FDQDOVREHPDGHRXWRIFDSDFLWRUV$FKDUJHGFDSDFLWRUUHSUHVHQWVDVWRUHGDGLVFKDUJHGFDSDFLWRU
UHSUHVHQWVDVWRUHG6LQFHIHZHUWUDQVLVWRUVDUHUHTXLUHGWKHVHFLUFXLWVFDQEHSDFNHGZLWKJUHDWHUGHQVLW\
RQDFKLS6PDOOFORVHO\SDFNHGFDSDFLWRUVKDYHWKHGLVDGYDQWDJHWKDWWKH\GLVFKDUJHUDSLGO\7KH\UHTXLUH
FRQVWDQWUHFKHFNLQJ(YHU\FDSDFLWRUZKLFKLVQRWFRPSOHWHO\GLVFKDUJHGPXVWEHSXPSHGEDFNXSDJDLQ
%HFDXVHWKHPHPRU\LVEHLQJFRQVWDQWO\UHIUHVKHGLWLVFDOOHGG\QDPLFPHPRU\RU'5$0'\QDPLF
PHPRU\LVOLNHDERRNVKHOIZLWKRXWWKHVKHOIH[FHSWWKDWLQWKHFDVHRIDERRNIDOOLQJIRXUIHHWVD\WRWKH
IORRU\RXZRXOGKDYHVHFRQGVWRFDWFKLWEHIRUHLWKLWWKHIORRU7KHVHOLWWOHFDSDFLWRUVGLVFKDUJHLQ
VHFRQGV7KHPHPRU\UHIUHVKPXVWEHGRQHDSSUR[LPDWHO\HYHU\V8QOLNHPDQ\GHYHORSPHQWVZKLFK
KDYHQXPHURXVFRQWULEXWRUVG\QDPLFPHPRU\ZDVLQYHQWHGE\DVLQJOHSHUVRQ7HG+RIIDURXQG
'\QDPLFPHPRU\LVFKHDSHUDQGVORZHUWKDQVWDWLFPHPRU\6WDWLFPHPRU\LVXVXDOO\XVHGIRUFDFKH
PHPRU\ZKLOHG\QDPLFPHPRU\LVXVHGIRU5$0
2QHGUDZEDFNRI'5$0LVWKDWLWPDNHVKDUGZDUHGHEXJJLQJPXFKPRUHGLIILFXOW7KHVLPSOHVWZD\WRGR
KDUGZDUHGHEXJJLQJZRXOGEHWRVORZWKHFRPSXWHUVFORFNZD\GRZQ$EHUUDQWEHKDYLRUFRXOGWKHQEH
REVHUYHGDVLWKDSSHQHG%XWEHFDXVHRI'5$0VUDSLGUHIUHVKUHTXLUHPHQWVWKHUHLVQRHDV\ZD\WRGRWKLV
[*HQHUDO5HJLVWHUVDQGWKHLU$QFHVWU\
2QHRIWKHUHDVRQVEHKLQGWKHPDUNHWVXFFHVVRIWKH,QWHO[OLQHRISURFHVVRUVKDVEHHQWKDWHDFKQHZ
SURFHVVRULQWKHOLQHZDVGHVLJQHGVXEMHFWWRWKHUHTXLUHPHQWWKDWLWEHFRPSDWLEOHZLWKSUHYLRXVSURFHVVRUV
,QWHOQHYHUZLSHGWKHVODWHFOHDQDQGVWDUWHGIURPVFUDWFKDV0RWRURODDQG,%0GLGZLWKWKH3RZHU3&FKLS
DQG'(&GLGZLWKWKH$OSKDSURFHVVRU7KLVPLQLPL]HGWKHDPRXQWRIKDUGZDUHDQGVRIWZDUHUHWRROLQJ
QHFHVVLWDWHGE\DQXSJUDGH&RQVHTXHQWO\DGHVFULSWLRQRIWKH[DQGLQSDUWLFXODULWVUHJLVWHUVOHQGVLWVHOI
WRDKLVWRULFDODSSURDFK:HEHJLQZLWKWKHSURFHVVRU
5HJLVWHUV
7KHZDVWKHILUVWUHDOO\PDVVSURGXFHGPLFURSURFHVVRU,WZDVXVHGDVWKH&38LQVHYHUDOHDUO\
PLFURFRPSXWHUVLQFOXGLQJWKH$WDUL7KLVSURFHVVRUKDVUHJLVWHUV$%&'+DQG/ZKLFKDUHDOOHLJKW
ELWUHJLVWHUV7KHYHU\ILUVWSHUVRQDOFRPSXWHUDOVRXWLOL]HGWKHSURFHVVRU,WZDVWKH$OWDLUZKLFK
DSSHDUHGRQWKHFRYHURI3RSXODU6FLHQFHPDJD]LQHRI-DQXDU\7KHIDFWWKDWLWVUHJLVWHUVPHPRU\
DGGUHVVHVDQGGDWDWUDQVIHUVZHUHDOOHLJKWELWVLQVL]HPDNHVWKLVFRPSXWHUDYHU\JRRGH[DPSOHRIDQ
HLJKWELWFRPSXWHU$OOWKHUHJLVWHUVVKRZQDUHHLJKWELWUHJLVWHUV7KHDGGUHVVEXVDQGWKHGDWDEXVHDFK
KDYHHLJKWZLUHV
)LJXUH$OWDLU&RPSXWHU
7KH/UHJLVWHULVXVHGWRVWRUHDGGUHVVHV7KH$OWDLUPHPRU\KDVE\WHVQXPEHUHGWR7KLVPHPRU\LV
VKRFNLQJO\VPDOOEXWRQWKHRWKHUKDQGLWZDVILOOHGRQHE\WHDWDWLPHE\IOLSSLQJHLJKWELWVZLWFKHV
7KHUHDUHH[WDQWYHUVLRQVRIWKHRQWKHPDUNHWWKHDQGWKH=5DGLR6KDFNV756ZDVEDVHG
RQWKH=
:KHQ,%0LQWURGXFHGWKH3&WKH\FKRVHWKH,QWHODVLWVSURFHVVRUEHFDXVHLQLWVGHDOLQJVZLWK
PHPRU\DQGWKHV\VWHPERDUGLWDFWVOLNHDQHLJKWELWSURFHVVRU,QSDUWLFXODULWDFWVDORWOLNHWKH
SURFHVVRU
5HJLVWHUV
$OWKRXJKWKH$OWDLUZDVDQHDUO\SXUHH[DPSOHRIDQHLJKWELWFRPSXWHUWKHSURFHVVRUGLGKDYHVRPH
ELWIHDWXUHV,QSDUWLFXODULWZDVGHVLJQHGVRWKDWLWFRXOGEHXVHGZLWKDELWPHPRU\DGGUHVVLQJ
V\VWHP,WGLGWKLVE\DOORZLQJWZRRIWKHHLJKWELWUHJLVWHUVWKH+DQGWKH/WRSDLUXSDQGIRUPDELW
UHJLVWHUZKLFKFRXOGWKHQEHXVHGIRUDGGUHVVHV:KHQWKLVKLJKE\WHORZE\WHSDLUZDVUHIHUHQFHGE\D
FRPPDQGDQ;ZDVXVHGLQWKHFRPPDQG)RUH[DPSOHWKHELWLQFUHPHQWFRPPDQGZDV,1;7KHHLJKW
ELWFRPPDQGZDV,157KH;VWRRGIRUH[WHQGHGDQGZDVXVHGZKHQHYHUELWUHJLVWHUSDLUVZHUHEHLQJ
UHIHUHQFHG:KHQWKHELWSURFHVVRUVKRZQLQ
)LJXUH
ZDVGHVLJQHGWKLV;ZDVUHFUXLWHGIRU
XVHLQWKHELWUHJLVWHUGHVLJQDWLRQV$;%;&;DQG';7KHELWUHJLVWHUV$;%;&;DQG';DUH
SDLUVRIKLJKDQGORZE\WHUHJLVWHUV$+DQG$/%+DQG%/&+DQG&/'+DQG'/7KHRWKHUELW
UHJLVWHUV63%36,DQG',KDYHQR;LQWKHLUQDPHVDQGDUHQRWE\WHSDLUV7KHGDWDEXVKDVZLUHV
$OVRVKRZQDUHWKH
PHPRU\ORFDWLRQVLQRQHPHPRU\VHJPHQW,QVSLWHRIWKHDERYH
SLFWXUHWKHLVQRWUHDOO\DJRRGH[DPSOHRIDELWFRPSXWHU7KHDGGUHVVEXVKDVZLUHVDQGWKHUH
LVDFOXPV\PHFKDQLVPIRUXVLQJDKDQGIXORIVHJPHQWVDWDWLPH6RWKHPHPRU\LVQRWDFWXDOO\OLPLWHGWR
.EXWWKHUHLVQRFRQYHQLHQWZD\WRXVHDOO
E\WHVDWRQFH
)LJXUH&RPSXWHU3DUWLDO0RGHO
5HJLVWHUV
0DQ\RIWKHZULQNOHVYLVLEOHLQWKHGHVLJQRIWKHDUHVPRRWKHGRXWLQWKHVKRZQLQ
)LJXUH
7KHHLJKWUHJLVWHUVZKRVHQDPHVEHJLQZLWK(DUHDOOH[WHQVLRQVRIWKHFRUUHVSRQGLQJUHJLVWHUVRQWKH
7KHERWWRPKDOIRIHDFKELWUHJLVWHULVDELWUHJLVWHULQKHULWHGIURPWKH7KHDGGUHVVEXVDQGWKH
GDWDEXVHDFKKDYHZLUHV$OVRVKRZQDUHWKH
PHPRU\ORFDWLRQVZKLFKDQLV
FDSDEOHRIDGGUHVVLQJ$QFRPSXWHULVDYHU\JRRGH[DPSOHRIDELWFRPSXWHU7KHDQGWKH
3HQWLXPDUHDOVRELWSURFHVVRUV,QIDFWLQWHUPVRIUHJLVWHUVVL]HVPHPRU\DGGUHVVLQJDQGVRRQWKHUH
DUHQRFKDQJHVDWDOO8SXQWLOWKH3HQWLXP,,DQG3HQWLXP3URZHUHUHOHDVHGWKHPDLQGHYHORSPHQWV
FRQVLVWHGLQLQFUHDVLQJWKHVSHHGZLWKRXWFKDQJLQJWKHEDVLFDUFKLWHFWXUH
)LJXUH
FRXOGMXVWDVZHOOEH
ODEHOHG3HQWLXP&RPSXWHUDV&RPSXWHUH[FHSWWKDWWKH3HQWLXPKDVDELWGDWDEXV
)LJXUH&RPSXWHU3DUWLDO0RGHO
7KH
029
&RPPDQG
7KLVVHFWLRQLQWURGXFHVWKH
029
FRPPDQG,WLVDYHU\LPSRUWDQWLQVWUXFWLRQ
029
LVDVWRUDJHFRPPDQG,W
FRSLHVDYDOXHLQWRDORFDWLRQ,WKDVPDQ\GLIIHUHQWYDOLGIRUPV7KHUHJLPPDQGUHJUHJIRUPVDUH
HVSHFLDOO\LPSRUWDQW
029
UHJLPP
z
UHJVWDQGVIRUUHJLVWHU,WPD\EHDQ\RIWKHUHJLVWHUVOLVWHGLQ
7DEOH
z
LPPVWDQGVIRULPPHGLDWH7KHWHUPLPPHGLDWHLVXVHGWRUHIHUWRDQXPHULFDOYDOXHJLYHQGLUHFWO\E\
DGHFLPDORUKH[DGHFLPDOUHSUHVHQWDWLRQDVRSSRVHGWRDUHJLVWHURUPHPRU\ORFDWLRQFRQWDLQLQJWKDW
YDOXH
)RUH[DPSOHLQ
029$;
WKHQXPEHURFFXUVDVDQLPPHGLDWHYDOXH7KLVFRPPDQGVWRUHVWKHQXPEHULQWRWKHELWUHJLVWHU
$;7KLVUHJLVWHULVWKHVDPHDVWKHERWWRPELWVRIWKHUHJLVWHU($;7KHWRSELWVDUHXQPRGLILHG
6LQFH +WKHFRPPDQGLVWKHVDPHDVWKHFRPPDQG
029$;+
7KHYDOXHDVVLJQHGWRWKHORFDWLRQPXVWILW7KHFRPPDQG
029$/
LVQRWYDOLGEHFDXVHZLOOQRWILWLQWRDQHLJKWELWUHJLVWHU1$60DQG(GOLQDVDOORZVLJQHGLQWHJHUV
+HQFH
029$/±
LVYDOLGDQGGRHVWKHVDPHWKLQJDV
029$/
%XWLVQRWYDOLGLQ(GOLQDVEHFDXVHLVQRWLQWKHHLJKWELWVLJQHGUDQJH1$60GRHVQWEDONXQWLOLWJHWV
WR1$60DOORZVFKDUDFWHUVWRUHSUHVHQW$6&,,FRGHV)RUH[DPSOH
029$/±
029$/$
VWRUHVWKH$6&,,FRGHIRUWKHOHWWHU$ZKLFKLVLQ$/
&RGHXVLQJELWUHJLVWHUVZLOOQRWUXQRQ[SURFHVVRUVSULRUWRWKH$OWKRXJKLWLVDFKDUDFWHULVWLF
RIVRFDOOHGELWFRGHWRXVHELWUHJLVWHUVVRPHELWFRGHGRHVDOVR7KHDFWXDOGLIIHUHQFH
EHWZHHQDQGELWFRGHLVGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
029
UHJUHJ
029
UHJUHJFRSLHVIURPWKHVHFRQGUHJLVWHULQWRWKHILUVW7KHWZRRSHUDQGFRPPDQGVGHVFULEHGLQWKLVERRN
XVHWKHV\QWD[&200$1'GHVWLQDWLRQVRXUFH+HQFHWKHFRPPDQG
7DEOH[*HQHUDO5HJLVWHUV
ELW
ELW
ELW
$+
$;
($;
$/
%;
(%;
%+
&;
(&;
%/
';
(';
&+
%3
(%3
&/
63
(63
'+
6,
(6,
'/
',
(',
029($;(%;
GRHVQRWFKDQJHWKH(%;UHJLVWHU,WPHDQV
OHW($; (%;
QRWPRYH($;WR(%;
7KHUHDUHDVVHPEOHUVZKLFKXVHWKHRSSRVLWHV\QWD[VXFKDVWKH$77VW\OHDVVHPEOHUXVHGE\JFF,QLWV
V\QWD[WKHH[DFWVDPHFRPPDQGLVZULWWHQ
PRYOHE[HD[
7KHWZRUHJLVWHUVXVHGLQD
029
FRPPDQGPXVWEHWKHVDPHVL]H7KHIROORZLQJFRPPDQGIRUH[DPSOHLV
QRWYDOLG
029(%;';
$PELJXLW\3UREOHP
$FFRUGLQJWRWKHDSSHQG+KH[FRQYHQWLRQGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
WKHUHJLVWHUQDPHV$+%+
&+DQG'+DUHDOVRYDOLGKH[DGHFLPDOQDPHVIRUWKHQXPEHUVWHQHOHYHQWZHOYHDQGWKLUWHHQ7KLVZRXOG
PDNHFRPPDQGVVXFKDV
029%/$+
DPELJXRXV7KLVFRPPDQGZRXOGEHDYDOLGH[DPSOHRIERWKWKHUHJUHJIRUPDQGWKHUHJLPPIRUPRIWKH
029
FRPPDQG7KHFXVWRPDU\UHVROXWLRQRIWKLVDPELJXLW\LVWRUHTXLUHDOOKH[DGHFLPDOQXPEHUVXVHGLQ
DVVHPEO\ODQJXDJHFRPPDQGVWREHJLQZLWKRQHRIWKHGLJLWV«7KLVPRGLILFDWLRQRIWKHDSSHQG+
FRQYHQWLRQZLOOEHREVHUYHGLQWKLVWH[WDQGLVUHTXLUHGE\ERWK1$60DQG(GOLQDV+HQFH
029%/$+
LV
DFWXDOO\QRWDYDOLGH[DPSOHWKHUHJLPPIRUP,WLVDQH[DPSOHRIWKHUHJUHJIRUP7RVWRUHWKHLPPHGLDWH
YDOXHWHQLQWR%/ZHPXVWXVHHLWKHU
029%/$+
RU
029%/
$GGLWLRQDQG6XEWUDFWLRQ&RPPDQGV
7KLVVHFWLRQGHVFULEHVWKHUHJLPPDQGUHJUHJIRUPVRIWKH
$''
DQG
68%
FRPPDQGV7KHVHDUHYHU\
IXQGDPHQWDODULWKPHWLFLQVWUXFWLRQV
$''
UHJLPP
$''UHJLPP
PHDQVWRDGGWKHLPPHGLDWHYDOXHWRWKHUHJLVWHU)RUH[DPSOH
$''%/
FDQEHWKRXJKWRIDV
OHW%/ %/
$''
UHJUHJ
7KHFRPPDQG
$''UHJUHJ
PHDQVWRDGGWKHFRQWHQWVRIWKHVHFRQGUHJLVWHUWRWKHILUVW6RWKHFRPPDQG
$''%/$/
PHDQV
OHW%/ %/$/
7KHUHJLVWHU$/LVQRWFKDQJHGE\WKLVFRPPDQG
68%
UHJLPP
7KHFRPPDQG
68%%/
IRUH[DPSOHPHDQV
OHW%/ %/
68%
UHJUHJ
68%%/$/
IRUH[DPSOHPHDQV
OHW%/ %/$/
0XOWLSOLFDWLRQDQG'LYLVLRQ&RPPDQGV
,IWKHPXOWLSOLFDWLRQFRPPDQGZHUHWRIXQFWLRQVLPLODUO\WRWKH
$''
DQG
68%
FRPPDQGZHZRXOGH[SHFWWR
VHHFRPPDQGVVXFKDV
08/($;(%;
ZKLFKZRXOGPHDQWRPXOWLSO\WKHFRQWHQWVRIWKHUHJLVWHU($;E\WKHYDOXHLQ(%;+RZHYHUWKHPXOWLSO\
FRPPDQGGRHVQRWZRUNOLNHWKLV2QHUHDVRQLVWKDWEHFDXVHPXOWLSO\LQJQXPEHUVWRJHWKHUW\SLFDOO\
GRXEOHVWKHPLQVL]HLWGRHVQRWPDNHVHQVHWRXVHWKHVDPHVL]HUHJLVWHUVIRUWKHDQVZHUDVIRUWKH
PXOWLSOLHGQXPEHUV
7KH
08/
&RPPDQG
7KHV\QWD[IRUWKHPXOWLSO\FRPPDQGLV
08/UHJ
UHJPD\EHDQ\RIWKHJHQHUDOUHJLVWHUVOLVWHGLQ
7DEOH
,IWKHUHJLVWHUXVHGLVDQHLJKWELWUHJLVWHUIRU
H[DPSOH
08/%+
WKHQWKHFRPPDQGPHDQV
OHW$; $/%+
:KHQDQHLJKWELWUHJLVWHULVXVHGLWDOZD\VPXOWLSOLHVE\$/DQGVWRUHVWKHUHVXOWLQ$;:KHQDELW
UHJLVWHULVXVHGIRUH[DPSOH
08/%;
WKHQWKHFRPPDQGPHDQV
OHW';$; $;%;
ZKHUHWKHELWDQVZHULVVWRUHGLQWZRELWUHJLVWHUV7KHWRSELWVDUHVWRUHGLQ';WKHERWWRPELWV
LQ$;:KHQDELWUHJLVWHULVXVHGIRUH[DPSOH
08/(%;
WKHQWKHFRPPDQGPHDQV
OHW(';($; ($;(%;
$VLQJOHUHJLVWHULVDOOWKDW\RXVSHFLI\ZKHQ\RXXVHWKH
08/
FRPPDQG7KHRWKHUUHJLVWHUVDUHDOZD\V
LPSOLHG7KHVLWXDWLRQLVVLPLODUWRWKDWZLWKWKH
$''
FRPPDQGRQWKHSURFHVVRUZKHUHDGGLWLRQUHVXOWV
DUHDOZD\VVWRUHGLQWKH$UHJLVWHU7KHFRPPDQG
$''%
LQDVVHPEO\ODQJXDJHPHDQV
OHW$ $%
8QOLNHWKH
$''
DQG
68%
FRPPDQGVWKH
08/
FRPPDQGKDVQRLPPHGLDWHIRUP7KHFRPPDQG
08/
LVQRWYDOLG
7KH
',9
&RPPDQG
7KH
',9
FRPPDQGFORVHO\UHVHPEOHVWKH
08/
FRPPDQGLQV\QWD[DQGLVHVVHQWLDOO\LWVLQYHUVH,WIRUPVERWK
DTXRWLHQWDQGDUHPDLQGHU
)RUH[DPSOHLI$;KHOGWKHYDOXHDQG%+KHOGWKHYDOXHWKHQ
',9%+
ZRXOGVWRUHLQ$+DQGLQ$/7KHFRPPDQGZRXOGEHUHFRJQL]HGDVDQHLJKWELWFRPPDQGEHFDXVH%+
LVDQHLJKWELWUHJLVWHU
'LYLVLRQE\]HURSURGXFHVDQHUURUFDOOHGDQH[FHSWLRQ([FHSWLRQVDUHGHDOWZLWKLQ
FKDSWHU
,WLVLPSRUWDQWWRQRWHWKDWEHFDXVHRIWKHVL]HVRIWKHUHJLVWHUVLQYROYHGLQGLYLVLRQ]HURLVQRWWKHRQO\
GLYLVRUZKLFKFDQFDXVHDQH[FHSWLRQ)RUH[DPSOHZKHQ$;LVGLYLGHGE\DQXPEHUVWRUHGLQDQHLJKWELW
UHJLVWHUWKHTXRWLHQWLVVXSSRVHGWREHVWRUHGLQ$/DQHLJKWELWUHJLVWHU%XWGLYLGLQJDELWQXPEHUE\
DQHLJKWELWQXPEHUGRHVQRWDOZD\VSURGXFHDQXPEHUZKLFKFDQEHVWRUHGLQHLJKWELWV)RUH[DPSOH
· RULQKH[+· +%XW+UHTXLUHVDWOHDVWWHQELWVRIVWRUDJH7KLVPHDQVWKDWWKH
GLYLGHQG
UHPDLQGHU
TXRWLHQW
ELWIRUP
(';($;
(';
($;
ELWIRUP
';$;
';
$;
ELWIRUP
$;
$+
$/
IROORZLQJFRGHZLOOFDXVHDQH[FHSWLRQ
029$;+
029%+
',9%+
7KLVHUURULVFDOOHGDGLYLVLRQRYHUIORZ
1HJDWLYH1XPEHUVDQG&RQJUXHQFHV
7ZRVFRPSOHPHQWUHSUHVHQWDWLRQLVXVHGIRUQHJDWLYHQXPEHUVLQSDUWEHFDXVHLWDOORZVDGGLWLRQDQG
VXEWUDFWLRQKDUGZDUHWREHXVHGLUUHVSHFWLYHRIZKHWKHUWKHELWVEHLQJRSHUDWHGRQDUHLQWHQGHGDVVLJQHG
LQWHJHUVRUDVXQVLJQHGLQWHJHUV7KHPDWKHPDWLFDOH[SODQDWLRQIRUZK\WZRVFRPSOHPHQWUHSUHVHQWDWLRQ
ZRUNVOLNHWKLVLVEDVHGRQDFRQFHSWGXHWR&)*DXVVDUHPDUNDEOHQLQHWHHQWKFHQWXU\PDWKHPDWLFLDQ
*DXVVGHILQHGD EPRGPWRPHDQWKDWDDQGEGLIIHURQO\E\VRPHH[DFWPXOWLSOHRIP,QWZRV
FRPSOHPHQWUHSUHVHQWDWLRQDQHJDWLYHQXPEHUDQGWKHSRVLWLYHQXPEHUXVHGWRUHSUHVHQWLWGLIIHUE\WKH
WXUQRYHUYDOXHRIWKHUHJLVWHUVEHLQJXVHG,IIRXUELWUHJLVWHUVDUHEHLQJXVHGWKHQHDFKQHJDWLYHDQGLWV
SRVLWLYHUHSUHVHQWDWLRQGLIIHUE\
RUDVVKRZQLQ
7DEOH
,Q*DXVVQRWDWLRQIRUH[DPSOH
PRG6RZKHQWKHFRPSXWHUGRHVDVLWGHSHQGVRQWKHIDFWWKDW
PRG7KHIRXUELWDGGLWLRQKDUGZDUHSURGXFHVEHFDXVHDFDUU\RILVORVW%XWWKDWLVRND\(OHYHQ
LVWKHFRUUHFWUHSUHVHQWDWLYHIRU
&RQJUXHQFH$GGLWLRQ7KHRUHP
7KLVUHDVRQLQJLVVXPPDUL]HGLQWKHIROORZLQJWKHRUHPGXHWR*DXVV
7KLVWKHRUHPVD\VWKDWFRQJUXHQFHVFDQEHDGGHGMXVWOLNHHTXDWLRQV*DXVVGHYLVHGWKHFRQJUXHQFHQRWDWLRQ
LQRUGHUWRPDNHWKHSRLQWWKDWDFRQJUXHQFHLVVLPLODUWRDQHTXDWLRQ
&RQJUXHQFH0XOWLSOLFDWLRQ7KHRUHP
7KHIROORZLQJWKHRUHPVWDWHVWKDWFRQJUXHQFHVFDQDOVREHPXOWLSOLHGMXVWOLNHHTXDWLRQV
%HFDXVHRIWKLVQLFHWKHRUHPZHVKRXOGEHDEOHWRXVHERWKVLJQHGDQGXQVLJQHGQXPEHUVZLWK
08/
MXVWOLNH
$''
DQGKDYHQRSUREOHPV([FHSWIRURQHWKLQJ
:HZDQWWRGRXEOHWKHUHJLVWHUVL]HDVZHJR6RWKHWKHRUHPZHUHDOO\QHHGLVWKLVRQH
8QIRUWXQDWHO\WKLVLVQWDWKHRUHP,WVDIDOVHKRRG)RUH[DPSOHLQWKHHLJKWELWFDVHZKHUHP DQGP
LID E DQGF G ZHJHWD F DQGE G 6RWKHWKHRUHPVD\V
5HPRYLQJWKHHLJKWELWWXUQRYHUYDOXHRIIURPOHDYHV+HQFHLIZHFRQVLGHUHGWKHDQVZHUWREH
XQVLJQHGRUVLJQHGWKHQHYHU\WKLQJZRXOGEHRND\7ZRKXQGUHGWZHQW\IRXULVWKHWZRV
FRPSOHPHQWSRVLWLYHWKDWLVHTXLYDOHQWWRLQWKHHLJKWELWV\VWHP%XWZHUHQRWFRQWHQWZLWKHLJKWELWV
:HZDQW$QG
,QWKHELWV\VWHPLVUHSUHVHQWHGE\QRW&RQVHTXHQWO\ZHFDQWXVH
08/
RU
',9
IRUERWK
VLJQHGDQGXQVLJQHGQXPEHUV
08/
DQG
',9
ZRUNIRUXQVLJQHGQXPEHUV7KHUHDUHGLIIHUHQWFRPPDQGV
ZKLFKZRUNIRUVLJQHGQXPEHUV
,08/
DQG
,',9
7KLVLVDQH[DPSOHRIWKHLVVXHUDLVHGLQ
VHFWLRQ
)XUWKHU5HDGLQJ
7KH0LFURSURFHVVRU$%LRJUDSK\0LFKDHO60DORQH6SULQJHU
7KH$QDWRP\RID+LJK3HUIRUPDQFH0LFURSURFHVVRU6KULYHUDQG6PLWK,(((
&KDSWHU$66(0%/</$1*8$*(
$FRPSXWHUSURJUDPLVVRPHWKLQJZKLFKFDQEHVWRUHGLQDFRPSXWHUVPHPRU\,IWKHPHPRU\KDVRQHE\WH
ZRUGVZHFDQWKHQVD\WKDWWKHFRPSXWHUSURJUDPFRQVLVWVRIE\WHV7KHVHE\WHVDUHDOVRFDOOHGPDFKLQH
ODQJXDJH:ULWLQJDSURJUDPE\OLVWLQJWKHVHE\WHVH[SOLFLWO\LVFDOOHGPDFKLQHODQJXDJHSURJUDPPLQJ,WLV
WKHRULJLQDOIRUPRISURJUDPPLQJ,WLVGHILQLWHO\WKHPRVWWHGLRXV$VVHPEO\ODQJXDJHZDVGHYLVHGDVD
ZD\RIVSHFLI\LQJPDFKLQHFRGHZLWKRXWDFWXDOO\KDYLQJWRZULWHLWGRZQ$VVHPEO\ODQJXDJHPD\EHPHUH
VKRUWKDQGRULWPD\LQYROYHFRPSOH[PDFURVVRPHRIZKLFKPD\HYHQUHVHPEOH
LI
RU
ZKLOH
VWDWHPHQWVLQ
&%XWZKHWKHULWLVSULPLWLYHRUIDQF\LWVGHILQLQJFKDUDFWHULVWLFLVWKDWLWJLYHVWKHSURJUDPPHUFRQWURORYHU
WKHPDFKLQHODQJXDJH
7KUHHJRRGUHDVRQVIRUOHDUQLQJDVVHPEO\ODQJXDJHDUH
,QWUXO\WLPHFULWLFDOVHFWLRQVRIFRGHLWLVVRPHWLPHVSRVVLEOHWRLPSURYHSHUIRUPDQFHE\FRGLQJLQ
DVVHPEO\ODQJXDJH
,WLVDJRRGZD\WROHDUQKRZDSDUWLFXODU&38ZRUNV
,QZULWLQJDQHZRSHUDWLQJV\VWHPRULQSRUWLQJDQH[LVWLQJV\VWHPWRDQHZPDFKLQHWKHUHDUH
VHFWLRQVRIFRGHZKLFKPXVWEHZULWWHQLQDVVHPEO\ODQJXDJH
$VVHPEO\ODQJXDJHVDUHZULWWHQWRILWKDQGLQJORYHZLWKDVSHFLILFSURFHVVRU*LYHQWKHFRQVLGHUDEOH
YDULHW\RISURFHVVRUVDQGLQVWUXFWLRQVHWVRQHPLJKWH[SHFWWKHUHWREHDFRQVLGHUDEOHYDULHW\LQWKH
LQVWUXFWLRQIRUPDWVIRUWKHYDULRXVDVVHPEO\ODQJXDJHVDVZHOO%XWWKLVLVQRWWKHFDVH$VVHPEO\ODQJXDJHV
JHQHUDOO\IROORZRQHXQLYHUVDOIRUPDWZKLFKPLJKWEHFDOOHGWKHIRXUILHOGIRUPDW
7KH)RXU)LHOG)RUPDW
$FFRUGLQJWRWKLVIRUPDWHYHU\DVVHPEO\ODQJXDJHSURJUDPFRQVLVWVRIOLQHV(YHU\OLQHFRQVLVWVRIIRXU
ILHOGV7KHIRXUILHOGVDUHWKHODEHOILHOGWKHPQHPRQLFILHOGWKHRSHUDQGILHOGDQGWKHFRPPHQWILHOG
7KHODEHOILHOGLVXVHGIRUDODEHOZKLFKVSHFLILHVWKHWDUJHWRIDMXPSLQVWUXFWLRQ$MXPSLVWKHVDPH
DVDJRWRLQVWUXFWLRQ([DPSOHVRIMXPSLQVWUXFWLRQVDUHJLYHQLQ
VHFWLRQ
7KHPQHPRQLFILHOGFRQWDLQVDQLQVWUXFWLRQVSHFLILHU([DPSOHVRIPQHPRQLFVDUH
029$''68%
HWF7KHZRUGPQHPRQLFVXJJHVWVWKDWLWPDNHVWKHPDFKLQHFRGHHDV\WRUHPHPEHUDOWKRXJKLW
GRHVQWLWPDNHVWKHPDFKLQHFRGHXQQHFHVVDU\WRUHPHPEHU
7KHRSHUDQGILHOGFRQWDLQVWKHREMHFWRUREMHFWVRQZKLFKWKHLQVWUXFWLRQLVRSHUDWLQJ,IWKHUHLVPRUH
WKDQRQHRSHUDQGWKH\DUHVHSDUDWHGE\FRPPDV$VZHQRWLFHGDERYH
$''
WDNHVWZRRSHUDQGV
-03
RQWKHRWKHUKDQGWDNHVRQH6RPHPQHPRQLFVWDNHQRQHDWDOO
7KHFRPPHQWILHOGFRQWDLQVGRFXPHQWDWLRQ,WEHJLQVZLWKDVHPLFRORQ,QDQ\FRPSXWHUODQJXDJH
GRFXPHQWDWLRQLVLPSRUWDQW,QDVVHPEO\ODQJXDJHGRFXPHQWDWLRQLVHVSHFLDOO\LPSRUWDQWEHFDXVHDQ
DVVHPEO\ODQJXDJHSURJUDPLVHVSHFLDOO\KDUGWRUHDGZLWKRXWLW$OLQHPD\FRQVLVWRIQRWKLQJEXWD
FRPPHQW
3URJUDP
LVDQH[DPSOHRIDQ[DVVHPEO\ODQJXDJHSURJUDP7KHUHDGHUVKRXOGQRWHWKHFRQVLVWHQWIRXU
ILHOGOD\RXWHYHQWKRXJKVRPHRIWKHILHOGVRQVRPHRIWKHOLQHVDUHHPSW\0DQ\RIWKHLQVWUXFWLRQVLQ
3URJUDP
DUHPDNLQJWKHLUILUVWDSSHDUDQFHKHUHLQWKLVERRN7KHVHQHZLQVWUXFWLRQVDUHDOOGLVFXVVHGLQ
WKLVFKDSWHU
3URJUDP
*UHDWHVWFRPPRQGLYLVRUSURJUDP
029(';LVWKHRQO\(GOLQDVLQSXWSRUW
,1($;>';@*HWWKHXVHUVILUVWLQSXW
029(&;($;*HWWKHLQSXWRXWRIKDUPVZD\
,1($;>';@*HWWKHXVHUVVHFRQGLQSXW
029(';($;8VH(';IRUWKHODUJHURIWKHWZRLQSXWV
25'68%($;(&;8VH($;DVDZRUNLQJFRS\RI(';
-=*&':KHQHTXDOLW\LVREWDLQHGZHDUHGRQH
-161;7:HZDQW(';WREHODUJHU1RVZDSQHHGHG
029($;(&;6ZDS(';DQG(&;7DNHVWKUHH029V
029(&;(';
1;7029(';($;,IWKHUHZDVQRVZDSWKHQ('; (';(&;
-0325'(QGRIWKHORRS
*&'029($;(';7KH*&'LVLQ(';
029(';:HQHHG(';IRUWKHRXWSXWSRUWQXPEHU
287>';@($;'LVSOD\WKHDQVZHUWRWKHXVHU
5(7
&RPSXWHUVIURPWKH&386WDQGSRLQW
&RPSXWHUVDUHRIWHQGHVFULEHGDVFRQVLVWLQJRIWKUHHSDUWVWKH&38WKHPHPRU\DQGWKHLQSXWRXWSXWRU
,2V\VWHP$GLDJUDPGUDZQDFFRUGLQJWRWKLVSLFWXUHORRNVOLNH
)LJXUH
,QFOXGHGLQWKH,2V\VWHPDUH
WKHPRQLWRUWKHNH\ERDUGWKHKDUGGULYHWKHSULQWHUWKHPRGHPWKHVRXQGFDUGDQGWKH&'5207KHVH
DUHDOOMXVW,2GHYLFHV7KLVLVDSURFHVVRUFHQWULFYLHZ-XVWDVPHPEHUVRIDJURXSVRPHWLPHVFDWHJRUL]H
SHRSOHLQWHUPVRIKRZWKH\UHODWHWRWKHJURXSWKLVSLFWXUHRIDFRPSXWHUGHILQHVSDUWVRIDFRPSXWHU
DFFRUGLQJWRKRZWKH\UHODWHWRWKH&386LQFHDVVHPEO\ODQJXDJHLVDOODERXWZRUNLQJZLWKWKH&38
KRZHYHULWLVDXVHIXOSRLQWRIYLHZIRUXVWRDGRSW
)LJXUH$OO&RPSXWHUVDUH'LYLGHGLQWR7KUHH3DUWV
,IZHLPDJLQHWKH&38LQWKHSLFWXUHWREHDWKHQZHFDQWKLQNRIWKHGDWDEXVDVDVHWRIZLUHV
FRQQHFWHGWRSLQVRQWKH&38DQGWKHDGGUHVVEXVDVDQRWKHUVHWRIZLUHVDOVRFRQQHFWHGWRWKH&38
1RWLFHWKDWWKHPHPRU\DQG,2V\VWHPVDUHFRQQHFWHGWRWKHSURFHVVRULQHVVHQWLDOO\WKHVDPHZD\,IZH
LPDJLQHYLHZLQJWKHELWVIORZLQJRQWKHEXVHVDGDWDWUDQVIHUEHWZHHQWKH&38DQGWKHPHPRU\ORRNV
DOPRVWH[DFWO\OLNHDGDWDWUDQVIHUEHWZHHQWKH&38DQGWKH,2V\VWHP7KHGLIIHUHQFHDFWXDOO\ERLOVGRZQ
WRDVLQJOHSLQRQWKH&387KLVSLQLVFDOOHGWKH0,2SLQ:KHQWKLVSLQLVDWORJLFLWVLJQDOVDPHPRU\
WUDQVIHU:KHQLWLVDWORJLFLWVLJQDOVDQ,2WUDQVIHU7KHDERYHGLDJUDPGRHVQRWUHDOO\PDNHVHQVH
ZLWKRXWDQ0,2ZLUH,WDOVRQHHGVD:5ZLUHWRVLJQDOZKHWKHUGDWDLVWRIORZLQWRRURXWRIWKH
SURFHVVRU7KHVHZLUHVDUHFDOOHGFRQWUROZLUHVDQGDUHSDUWRIWKHFRQWUROEXV
7KHUHDGHULVXUJHGWRFRPSDUH
)LJXUH
ZLWK
)LJXUH
ZKLFKVKRZVLQJUHDWHUGHWDLOKRZWKHZLUHV
IURPWKHWKUHHGLIIHUHQWEXVHVKRRNXSWRDPHPRU\FLUFXLW
0HPRU\YV,2
,Q
7DEOH
ZHVHHWZRLPPIRUPVRIWKH
029
FRPPDQGFRPSDUHGZLWKWKHFRUUHVSRQGLQJ,2FRPPDQGV
7KHVHFRPPDQGVFDUU\RXWWUDQVIHUVEHWZHHQWKH$/UHJLVWHUDQGWKHPHPRU\RU,2GHYLFHORFDWHGDW
DGGUHVV7KHSURFHVVRU
VLJQDOVUHDGYVZULWHXVLQJWKH:5SLQDQGPHPRU\YV,2XVLQJWKH0,2SLQ2WKHUZLVHWKH
WUDQVDFWLRQLVYHU\VLPLODU
2QHVLJQLILFDQWGLIIHUHQFHEHWZHHQPHPRU\DQG,2DGGUHVVLQJRQWKH[LVWKDWPHPRU\DGGUHVVHV
XQGHUJRSURFHVVLQJEHIRUHWKH\OHDYHWKHSURFHVVRU7KLVSURFHVVLQJKDVWZRVWDJHVVHJPHQWDWLRQDQG
SDJLQJ6HJPHQWDWLRQLVGHVFULEHGLQ
FKDSWHU
DQGSDJLQJLVGHVFULEHGLQ
FKDSWHU
$QRWKHUGLIIHUHQFHEHWZHHQWKH,2V\VWHPDQGWKHPHPRU\LVWKDWWKH\GRQRWKDYHWKHVDPHUDQJHRIYDOLG
DGGUHVVHV$VGLVFXVVHGLQ
FKDSWHU
WKHUDQJHRIYDOLGPHPRU\DGGUHVVHVYDULHVIURPRQH[SURFHVVRUWR
DQRWKHU,WGHSHQGVRQWKHQXPEHURIDGGUHVVSLQVWKHSURFHVVRUKDV7KHUDQJHRIYDOLG,2DGGUHVVHVRQ
WKHRWKHUKDQGLVWKHVDPHRQDOO[SURFHVVRUV,WLVWKHELWUDQJHIURPWR,QFLGHQWDOO\WKLV
PHDQVWKDWWKH,2V\VWHPGRHVQRWQHHGWREHFRQQHFWHGWRDOODGGUHVVZLUHVRQO\WRWKHERWWRP7KH
DGGUHVVHVLQWKLVUDQJHDUHFDOOHGSRUWVRUSRUWQXPEHUV
0DQ\H[LVWLQJ,2GHYLFHVVXFKDVGLVNGULYHVSULQWHUVDQGVHULDOSRUWVXVHDKDQGIXORISRUWVHDFK
7DEOH
IRUH[DPSOHOLVWVWKHHLJKWDGGUHVVHVXVHGE\WKHVWDQGDUGVHULDOSRUWV&OHDUO\WKHSRUWQXPEHUV
WKURXJKLQWKHWDEOHDUHQRWSRUWQXPEHUVLQWKHVSHFLILFVHQVHZHDUHFRQVLGHULQJKHUH%XWWKHIROORZLQJ
KH[DGGUHVVHVDUHSHUIHFWH[DPSOHVRIWKHVHSRUWQXPEHUV$UHODWLYHO\FRPSOHWH
OLVWRIWKHSRUWQXPEHUVXVHGRQDVWDQGDUG3&PD\EHIRXQGLQ$SSHQGL[$RI6KDQOH\V,6$6\VWHP
$UFKLWHFWXUH7KH,2SRUWVLQXVHRQD/LQX[PDFKLQHPD\EHDFFHVVHGYLDWKH
SURF
GLUHFWRU\XVLQJWKH
FRPPDQG
OLQX[ER[FDWSURFLRSRUWV
7DEOH([DPSOHVRI0HPRU\DQG,27UDQVIHU&RPPDQGV
0HPRU\
,2
5HDG
029$/>@
,1$/>@
:ULWH
029>@$/
287>@$/
7DEOH6WDQGDUG6HULDO3RUW,2$GGUHVVHV
&RP3RUW
,2$GGUHVVHV
)+))+
)+))+
(+()+
)+))+
7KHFORVHVLPLODULW\RIPHPRU\DQG,2WUDQVIHUVLVQRWIXOO\UHIOHFWHGLQ[DVVHPEO\ODQJXDJHZKLFKKDV
PDQ\FRPPDQGVLQYROYLQJPHPRU\DFFHVVEXWRQO\DIHZ
,1
DQG
287
IRUH[DPSOHFRQWUROOLQJ,2DFFHVV
7KHXVHRI
029
DQGPDQ\RWKHUFRPPDQGVWRDFFHVVPHPRU\LVGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
7KH
,1
DQG
287
FRPPDQGVDUHGLVFXVVHGQH[W
7KH
,1
&RPPDQG
7KHLQSXWFRPPDQGWUDQVIHUVGDWDIURPDQ,2SRUWLQWRWKHSURFHVVRU7KHUHDUHVL[YDOLGIRUPVRIWKLV
FRPPDQG
,1($;>';@
,1$;>';@
,1$/>';@
,1($;>LPP@
,1$;>LPP@
,1$/>LPP@
ZKHUHLPPLVDQ\RQHE\WHQXPEHU1RWLFHWKDWWKHJHQHUDO
&200$1'GHVWLQDWLRQVRXUFH
IRUPDWLVDGKHUHGWRLQWKLVLQVWUXFWLRQ7KHYDOLGGHVWLQDWLRQUHJLVWHUVDUH($;$;DQG$/7KH,2
GHYLFHZKRVHSRUWQXPEHULVVWRUHGLQ';RUJLYHQE\LPPLVWKHVRXUFH
1RWLFHWKDW';LVDELWUHJLVWHU7KLVPDNHVVHQVHEHFDXVHDSRUWQXPEHULVDELWQXPEHU0RVW,QWHO
DVVHPEOHUVLQFOXGLQJ1$60GRQRWXVHEUDFNHWVDURXQGWKHSRUWQXPEHU,I\RXGRKRZHYHU\RXFDQ
WKLQNRIWKHFRPPDQG
,1$/>';@
IRUH[DPSOHDV
OHW$/ >';@
ZKHUHWKH>';@UHIHUVWRGDWDORFDWHGDWWKHDGGUHVV';7KLVLVGRQHLQ(GOLQDVIRUWKHVDNHRIFRQVLVWHQF\
0HPRU\FRPPDQGVXVHEUDFNHWVLQWKHVDPHZD\%UDFNHWVEHFRPHDGHUHIHUHQFLQJRSHUDWRUOLNHLQWKH&
ODQJXDJH,QERWK(GOLQDVDQG1$60DOOUHIHUHQFHVWRGDWDLQPHPRU\E\PHDQVRIDQDGGUHVVXVHEUDFNHWV
DURXQGWKHDGGUHVV1$60GRHVQRWXVHEUDFNHWVIRU,2UHIHUHQFHV+HQFHLQXVLQJ1$60WKHEUDFNHWVLQ
WKH
,1
DQG
287
LQVWUXFWLRQVDUHRPLWWHG
%HFDXVHWKHLPPIRUPVRIWKH
,1
FRPPDQGDFFHSWRQO\RQHE\WHSRUWVRQO\WKHERWWRPRIWKH
SRUWVDUHDFFHVVLEOHXVLQJWKHLPPIRUPV1RWLFHWKDWWKH
,1
FRPPDQGZDVQRWJLYHQDV
,1
UHJ>UHJ@7KLVLV
EHFDXVHIRUPVVXFKDV
,1(%;>';@
DQG
,1($;>&;@
DUHQRWYDOLG
7KH
287
&RPPDQG
7KHRXWSXWFRPPDQGWUDQVIHUVGDWDIURPWKHSURFHVVRUWRDQ,2GHYLFH7KHVL[YDOLGIRUPVRIWKLV
FRPPDQGDUH
287>';@($;
287>';@$;
287>';@$/
287>LPP@($;
287>LPP@$;
287>LPP@$/
ZKHUHDJDLQLPPLVDQ\RQHE\WHQXPEHU7KHRUGHURIWKHRSHUDQGVLVRSSRVLWHWRZKDWLWLVLQWKH
,1
FRPPDQGEHFDXVHWKHGDWDLVIORZLQJLQWKHRSSRVLWHGLUHFWLRQ7KHVRXUFHLVHLWKHUWKH($;WKH$;RUWKH
$/UHJLVWHUDQGWKHGHVWLQDWLRQLVDQ,2GHYLFH$JDLQ1$60GRHVQWXVHEUDFNHWVZLWK
287
0HPRU\0DSSHG,2
:KHQDGGUHVVHVLQWKHPHPRU\DGGUHVVVSDFHDUHFRQQHFWHGLQIDFWWR,2GHYLFHVWKLVLVUHIHUUHGWRDV
PHPRU\PDSSHG,27KHYLGHREXIIHURQWKHVWDQGDUG3&LVDQH[DPSOH&KDUDFWHUVVWRUHGDWWKHE\WHV
VWDUWLQJDWWKHPHPRU\DGGUHVV%+DUHRXWSXWWRWKHPRQLWRU
8VLQJDVHSDUDWHDGGUHVVVSDFHIRU,2GHYLFHVLVQRWWKHRQO\FRQFHLYDEOHDSSURDFKWR,2DGGUHVVLQJ0DQ\
DUFKLWHFWXUHVXVHDVLQJOHVHWRIDGGUHVVHVDQGVLPSO\UHVHUYHVRPHRIWKHPIRU,2
5HVHUYHGDGGUHVVHVDUHDOVRXVHGRQ3&VIRU520RUUHDGRQO\PHPRU\,IPHPRU\ZULWHVDUHGRQHWRUHDG
RQO\PHPRU\WKHSURFHVVRUZLOOVHQGWKHDSSURSULDWHZULWHVLJQDOVRXWRQWRWKHEXVHVEXWQRFKDQJHZLOOEH
PDGHLQWKHVWRUHGGDWD
6LPSOH$VVHPEO\/DQJXDJH3URJUDPV
6LPSOHKLJKOHYHOODQJXDJHSURJUDPVRIWHQKDYHDWKUHHSDUWIRUPDWLQSXWGDWDGRFDOFXODWLRQVDQGWKHQ
RXWSXWWKHUHVXOWV8VLQJ(GOLQDVVLPSOHSURJUDPVRIWKHVDPHVW\OHFDQEHZULWWHQLQ[DVVHPEO\
ODQJXDJH
(GOLQDV3RUWV
7KHLPDJLQDU\PDFKLQHVLPXODWHGE\(GOLQDVXVHVRQO\WZRSRUWQXPEHUV
z
LVWKHSRUWIRUWKHNH\ERDUGLQSXW
z
LVWKHSRUWIRUWKHVFUHHQRXWSXW
.H\ERDUGLQSXWLVHFKRHGDWWKHORZHUOHIWRIWKHVFUHHQDQGRXWSXWLVGLVSOD\HGDWWKHORZHUULJKW:KHQ
,1
($;>';@
LVXVHGZLWK(GOLQDVWKHYDOXHVWRUHGLQ';VKRXOGEH:KHQSRUWLVDGGUHVVHGWKHXVHULV
SURPSWHGIRUDQLQSXWYDOXH:KHQ
287>';@($;
LVXVHGWKHYDOXHVWRUHGLQ';VKRXOGEH:KHQSRUW
LVXVHGWKHRXWSXWYDOXHLVGLVSOD\HGLQEDVHWHQDWWKHERWWRPULJKWRIWKHVFUHHQ7KHXVHRIWKHVHWZRSRUWV
DOORZVYHU\VLPSOHSURJUDPVWREHZULWWHQLQJHQXLQH[DVVHPEO\ODQJXDJHDQGUXQRQWKH(GOLQDV
VLPXODWRU
3URJUDPVXVLQJ(GOLQDVSRUWVZLOOQRWUXQXQGHU'26RU8QL[,Q
FKDSWHU
VHFWLRQ
LWLVVKRZQKRZ
WKHVH,2FRPPDQGVWRWKHVLPXODWHGPDFKLQHPD\EHUHSODFHGE\FDOOVWRWKH&OLEUDU\IXQFWLRQV
VFDQI
DQG
SULQWI
,QWKLVZD\VLPSOH(GOLQDVSURJUDPVXVLQJUHDO,2FDQEHUXQXQGHU/LQX[
7KH
5(7
&RPPDQG
3URJUDPVDUHVHWLQPRWLRQE\WKHRSHUDWLQJV\VWHP:KHQWKHSURJUDPLVILQLVKHGLWPXVWUHWXUQFRQWUROWR
WKHRSHUDWLQJV\VWHP
5(7
GRHVWKLV6XESURJUDPVDOVRXVH
5(7
WRUHWXUQFRQWUROWRDFDOOLQJSURJUDP
5(7
ZRUNVXVLQJWKHVWDFNDQGLVGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
3URJUDPWR$GG7ZR1XPEHUV
:HQRZKDYHDOOWKHFRPPDQGVZHQHHGWRZULWHVRPHVLPSOHEXWFRPSOHWHSURJUDPV+HUHLVDQ(GOLQDV
SURJUDPWRDGGWZRQXPEHUV
3URJUDP
029(';0DNLQJDOOELWV]HURPDNHV';]HUR
,1($;>';@8VHUHQWHUVWKHILUVWQXPEHUYLDSRUW]HUR
029(%;($;*HWWKHILUVWQXPEHURXWRIWKHZD\
,1($;>';@8VHUHQWHUVWKHVHFRQGQXPEHU
$''($;(%;$GGWKHILUVWQXPEHUWRWKHVHFRQG
029(';7KH(GOLQDVRXWSXWSRUWLVRQH
287>';@($;7KHUHVXOWLVRXWSXWWRWKHXVHU
5(7(QGWKHVLPXODWLRQ
$VVHPEOHU3URJUDPVZLWK-XPSV
+LJKOHYHOODQJXDJHVQHHGORRSVLQRUGHUWREHDEOHWRGRWKHLUZRUN7KHVHORRSVPXVWEHWXUQHGLQWR
DVVHPEO\FRGHE\DFRPSLOHU)RUH[DPSOHDVLOOXVWUDWHGLQ
)LJXUH
WRGRD&ODQJXDJH
ZKLOH
ORRSLQWKH
PRVWVWUDLJKWIRUZDUGZD\UHTXLUHVERWKDFRQGLWLRQDOMXPSIRUZDUGDQGDQXQFRQGLWLRQDOMXPSEDFNZDUG
)LJXUH
ZKLOH
WHVW%RG\
7KH
-03
&RPPDQG
7KHIHWFKH[HFXWHF\FOHZRUNVE\FDOFXODWLQJWKHDGGUHVVLQPHPRU\RIWKHQH[WLQVWUXFWLRQ7KLVDGGUHVVLV
QRUPDOO\GHWHUPLQHGE\MXVWJRLQJWRWKHILUVWDGGUHVV
EH\RQGWKHFXUUHQWLQVWUXFWLRQ,QRUGHUWRVXSSRUWLIWKHQVWDWHPHQWVRUORRSVLQKLJKOHYHOODQJXDJHV
KRZHYHUMXPSVDUHQHHGHG7KH
-03
FRPPDQGWUDQVIHUVH[HFXWLRQWRWKHDGGUHVVVSHFLILHGE\DODEHO
7KH
-03
FRPPDQGKDVWKHIRUP
-03ODEHO
7KHODEHOLVFUHDWHGE\WKHSURJUDPPHU,WLVZLVHWRGHYLVHODEHOVZKLFKKHOSLQXQGHUVWDQGLQJWKHSURJUDP
)RUWKLVSXUSRVHORQJODEHOVDUHXVHIXO2QWKHRWKHUKDQGWKHVFUHHQVSDFHXVHGE\(GOLQDVLVYHU\OLPLWHG
DQGVRODEHOVEH\RQGWKUHHFKDUDFWHUVDUHWUXQFDWHGZKHQWKH\DUHGLVSOD\HGXQOHVVWKH\DUHRQDOLQHE\
WKHPVHOYHV7KHODEHOLQWKHODEHOILHOGVSHFLILHVWKHWDUJHWRIWKHMXPSDQGRIWHQKDVDFRORQDSSHQGHGWR
PDNHLWFOHDUWKDWLWLVDODEHODQGQRWDQDUFDQHPQHPRQLF0DQ\MXPSFRPPDQGVPD\SRLQWWRWKHVDPH
WDUJHWEXWQRWZROLQHVPD\FDUU\WKHVDPHODEHOLQWKHLUODEHOILHOG,QWKHIROORZLQJSURJUDPWKHODVWOLQH
WUDQVIHUVFRQWUROWRWKHSUHFHGLQJOLQH7KLVSURJUDPFRQWLQXHVDGGLQJWRWKH($;UHJLVWHUIRUHYHU,WLVDQ
LQILQLWHORRS,QILQLWHORRSVDUHXVXDOO\ZULWWHQRQO\E\PLVWDNH
&RQGLWLRQDO-XPSVDQG)ODJV
$FRQGLWLRQDOMXPSLVDMXPSFDUULHGRXWRQWKHEDVLVRIDWUXWKYDOXH7KHLQIRUPDWLRQRQZKLFKVXFK
GHFLVLRQVDUHEDVHGLVFRQWDLQHGLQRQHELWUHJLVWHUVFDOOHGIODJV:KHQDIODJFRQWDLQVLWLVUHIHUUHGWRDV
EHLQJVHW:KHQLWFRQWDLQVLWLVUHIHUUHGWRDVEHLQJFOHDUHG7ZRYHU\LPSRUWDQWIODJVDUHWKH]HURIODJ
DQGWKHVLJQIODJ
3URJUDP
029($;
029(%;
;<=$''($;(%;
-03;<=
7KH=HURDQG6LJQ)ODJV
7KH
$''
DQG
68%
FRPPDQGVDIIHFWQRWRQO\WKHLUGHVWLQDWLRQUHJLVWHUVEXWDOVRPDQ\RIWKHIODJV6XSSRVH
WKHFRPPDQG
$''($;(%;
LVH[HFXWHG7KHUHVXOWRIWKLVFRPPDQGZLOOEHLQWKH($;UHJLVWHU,IWKLVUHVXOWLVWKHQWKH]HURIODJLV
VHW,ILWLVQRWWKHQWKH]HURIODJLVFOHDUHG
7KHYDOXHJLYHQWRWKHVLJQIODJDIWHUDQ
$''
LQVWUXFWLRQLVWKHYDOXHRIWKHPRVWVLJQLILFDQWELWRIWKHUHVXOW
7KLVELWLVLIWKHUHVXOWLVQHJDWLYHZKHQYLHZHGDVDVLJQHGQXPEHU7KXVLIH[HFXWLQJWKH
$''($;(%;
FRPPDQGJLYHV($;DYDOXHZKLFKLVQHJDWLYHDVDIRXUE\WHVLJQHGQXPEHUWKHQWKHVLJQIODJLVVHW
RWKHUZLVHWKHVLJQIODJLVFOHDUHG
7KH
-=-6-1=
DQG
-16
&RPPDQGV
7KHIROORZLQJFRQGLWLRQDOMXPSFRPPDQGVDOOKDYHWKHVDPHIRUPDWDVWKH
-03
FRPPDQG
-=ODEHO
-6ODEHO
-1=ODEHO
-16ODEHO
7KH\HDFKWDNHDODEHOLQWKHRSHUDQGILHOG7KHPHDQLQJVRIWKHVHFRPPDQGVDUHDVIROORZV
-=-XPSLIWKH]HURIODJLVVHW
-6-XPSLIWKHVLJQIODJLVVHW
-1=-XPSLIWKH]HURIODJLVQRWVHW
-16-XPSLIWKHVLJQIODJLVQRWVHW
7KHIROORZLQJDVVHPEO\ODQJXDJHSURJUDPLOOXVWUDWHVWKHXVHRIWKH
-6
LQVWUXFWLRQLQDSURJUDPWRGHWHUPLQH
ZKLFKRIWZRXVHULQSXWVLVODUJHU
3URJUDP
VHHPVDLUWLJKW,QIDFWLWKDVDEXJ
3URJUDP
,IWKHILUVWLQSXWLVODUJHURXWSXW
,IWKHVHFRQGLQSXWLVODUJHURXWSXW
7KHSURJUDPXVHVVXEWUDFWLRQ
%$LVWUXHLIDQGRQO\LI%²$LVQHJDWLYH
$VXEWUDFWLRQIROORZHGE\D-6GRHVWKHMRE
029(';
,1($;>';@
029(%;($;7KHILUVWLQSXWLVQRZLQ(%;
,1($;>';@7KHVHFRQGLQSXWLVQRZLQ($;
68%(%;($;7KLVLVILUVW±VHFRQG
-66,%6HFRQGLV%LJJHU
029($;2WKHUZLVH)LUVWLV%LJJHU
-03(1''RQWGULIWLQWRWKHRWKHUFDVH
6,%029($;
(1'029(';(LWKHUZD\QRZ($;LVUHDG\
287>';@($;
5(7
$VVHPEOHU3URJUDPVZLWK/RRSV
&RQGLWLRQDOMXPSVDUHXVHGWRLPSOHPHQWORRSVDQGLIWKHQVWDWHPHQWV6XSSRVHZHFRQVLGHUWKHIROORZLQJ
SURJUDPZKLFKGRHVPXOWLSOLFDWLRQXVLQJUHSHDWHGDGGLWLRQ)RUH[DPSOHWRGRîZHFDQGR
,Q
3URJUDP
WKHQXPEHULVDGGHGLQRQHOLQHDQGVXEWUDFWHGLQDQRWKHU7KHUHDUHVSHFLDO
FRPPDQGVIRUWKLVZKLFKWDNHOHVVPHPRU\VSDFH
3URJUDP
029(';
,1($;>';@)LUVWLQSXWLVWKHPXOWLSOLHU
029(%;($;3XW0XOWLSOLHULQ(%;
,1($;>';@6HFRQGLQSXWLVWKHPXOWLSOLHGQXPEHU
029(&;,QLWLDOL]HWKHUXQQLQJWRWDO
537$''(&;($;'RRQHDGGLWLRQ
68%(%;2QHOHVV\HWWREHGRQH
-1=537,IWKDWVQRW]HURGRDQRWKHU
029($;(&;3XWWKHWRWDOLQ($;
$''(';
287>';@($;2XWSXWWKHDQVZHU
5(7
7KH
,1&
DQG
'(&
&RPPDQGV
7KHIROORZLQJLQFUHPHQWDQGGHFUHPHQWFRPPDQGVDGGDQGVXEWUDFW
,1&UHJ
DQG
'(&UHJ
UHJPD\EHDQ\RIWKHJHQHUDOUHJLVWHUV7KHVHFRPPDQGVDUHRIWHQXVHGWRLQFUHPHQWRUGHFUHPHQWD
ORRSFRXQWHU,Q
3URJUDP
68%(%;
FDQEHUHSODFHGE\
'(&(%;
DQG
$''(';
FDQEHUHSODFHGE\
,1&(';
6LJQHG&RPSDULVRQV
&RPSDULVRQ%DVHG-XPSV
+LJKOHYHOODQJXDJHVRIWHQXVHFRPSDULVRQVLQLIWKHQVWDWHPHQWV8VLQJWKHVLJQIODJWRWHVWWKHUHVXOWRID
VXEWUDFWLRQDVZDVGRQHLQ
VHFWLRQ
VHHPVWREHDUHDVRQDEOHZD\WRLPSOHPHQWWKLVWHVWLQJVLQFHLWLVD
PDWKHPDWLFDOIDFWWKDW
%$LIDQGRQO\LI%$LVQHJDWLYH
6LQFHWKHVLJQIODJLQGLFDWHVWKHVLJQRIWKHUHVXOWRIDVXEWUDFWLRQZHZRXOGVHHPWREHRQVROLGJURXQG%XW
LQIDFWWKLVLVQRWWUXH
7KH2YHUIORZ)ODJ
6XSSRVHZHDUHXVLQJRQHE\WHVLJQHGQXPEHUVDQGZHZLVKWRWHVWZKHWKHU
,QRQHE\WHUHJLVWHUV
$QRYHUIORZKDVRFFXUUHG7KHUHVXOWLVQHJDWLYH7KHVLJQIODJLVVHWDQGWKHFRPSDULVRQZLOOEHMXGJHGDV
WUXH8VLQJWKHVLJQIODJWRGHWHUPLQHDMXPSJLYHVWKHZURQJDQVZHU%XWVLQFHDQRYHUIORZDOZD\VFKDQJHV
WKHVLJQRIDUHVXOWWRWKHRSSRVLWHRIZKDWLWVKRXOGEHWKHMXPSFRQGLWLRQFDQEHIL[HG
,IQRRYHUIORZKDVRFFXUUHGMXPSLIWKHVLJQIODJLVVHW
,IDQRYHUIORZKDVRFFXUUHGMXPSLIWKHVLJQIODJLVQRWVHW
7KH[SURFHVVRUKDVDQRYHUIORZIODJ,WLVXVHGLQRUGHUWRLPSOHPHQWWKLVIL[HGXSMXPSFRQGLWLRQ,IZH
XVH6)IRUWKHELQDU\YDOXHRIWKHVLJQIODJDQG2)IRUWKDWRIWKHRYHUIORZIODJZHFDQUHVWDWHWKHIL[HG
MXPSFRQGLWLRQDVMXVW
-XPSLI6);252)
7KLVMXPSFRQGLWLRQZLOOSURGXFHDMXPSIROORZLQJDVXEWUDFWLRQVXFKDV
68%$/%/
LIDQGRQO\LI$/%/7KHUHLVDQ[FRPPDQGIRUWKLVMXPS7KHPQHPRQLFIRULWLV
-/
ZKLFKVWDQGV
IRUMXPSLIOHVVWKDQ
7KH
&03
&RPPDQG
:KHQDVXEWUDFWLRQLVSHUIRUPHGRQO\IRUWKHVDNHRIDFRPSDULVRQLWPD\EHGRQHZLWKWKH
&03
LQVWUXFWLRQ
7KLVFRPPDQGVHWVWKHIODJVLQWKHH[DFWVDPHZD\DV
68%
EXWKDVWKHDGYDQWDJHRIQRWZDVWLQJUHJLVWHU
VSDFHE\VWRULQJDQXQQHHGHGUHVXOW8VLQJWKH
-/
DQG
&03
LQVWUXFWLRQVZHFDQUHZULWHWKH
3URJUDP
DV
IROORZV
3URJUDP
,IWKHILUVWLQSXWLVODUJHURXWSXW
,IWKHVHFRQGLQSXWLVODUJHURXWSXW
7KHSURJUDPXVHVVXEWUDFWLRQ
%$LVWUXHLIDQGRQO\LI%$LVQHJDWLYH
029(';
,1($;>';@
029(%;($;7KHILUVWLQSXWLVQRZLQ(%;
,1($;>';@7KHVHFRQGLQSXWLVQRZLQ($;
&03(%;($;7KLVLVILUVW±VHFRQG
-/6,%6HFRQGLV%LJJHU
029($;2WKHUZLVH)LUVWLV%LJJHU
-03(1''RQWGULIWLQWRWKHRWKHUFDVH
6,%029($;
(1'029(';(LWKHUZD\QRZ($;LVUHDG\
287>';@($;
5(7
3URJUDP
ZRUNVFRUUHFWO\IRUDOOQXPEHUVLQWKHXQVLJQHGIRXUE\WHUDQJH
0RUH-XPS&RPPDQGV
)ROORZLQJD
&03($;(%;
FRPPDQGWKH
-/
FRPPDQGH[HFXWHVDMXPSLIWKHFRQGLWLRQ($;(%;LV
WUXH7KHFRPPDQGV
&03($;(%;
-/$%&
PHDQ
&RPSDUH($;WR(%;DQG
-XPSLI($;LVOHVVWKDQ(%;
:KDWLVJRLQJRQKHUHLVVXEWUDFWLRQDQGIODJFKHFNLQJEXWWKHZHOOGHVLJQHGV\QWD[DOORZVXVWRRYHUORRN
WKDW7KHOHVVWKDQFRQGLWLRQLVQRWWKHRQO\FRQGLWLRQFRQYHQLHQWO\DFFHVVHGIROORZLQJD
&03
FRPPDQG$
OLVWRIVHYHUDORWKHUFRQGLWLRQDO
MXPSFRPPDQGVLVJLYHQKHUH
-/OHVVWKDQ($;(%;
-/(OHVVWKDQRUHTXDO($; (%;
-*JUHDWHUWKDQ($;!(%;
-*(JUHDWHUWKDQRUHTXDO($; (%;
-(HTXDO($; (%;
-1/QRWOHVVWKDQ($;"(%;
-1/(QRWOHVVWKDQRUHTXDO($;"(%;
-1*QRWJUHDWHUWKDQ($;"(%;
-1*(QRWJUHDWHUWKDQRUHTXDO($;"(%;
-1(QRWHTXDO($;"(%;
%HFDXVHWKHVHYDULRXVMXPSFRPPDQGVDUHVRHDVLO\LQWHUSUHWHGWKH\WXUQWKHFRPSDUHFRPPDQGLQWRDNLQG
RIV\QWDFWLFDOZLQGIDOO
8QVLJQHG&RPSDULVRQV
,Q
VHFWLRQ
LWZDVVKRZQKRZIODJVFRXOGEHXVHGWRGHWHUPLQHWKHWUXWKYDOXHVRILQHTXDOLWLHVVRWKDW
WKHVHLQHTXDOLWLHVFRXOGEHXVHGLQFRQGLWLRQDOMXPSV7KHFRQGLWLRQVREWDLQHGZRUNIRUXQVLJQHGQXPEHUV
%XWVXSSRVHZHFRQVLGHUWKHVDPHH[DPSOH
WKDWZHFRQVLGHUHGLQWKHODVWVHFWLRQDQGQRWHWKDWZKHQWKLVVDPHLQHTXDOLW\LVVWDWHGLQWHUPVRIXQVLJQHG
QXPEHUVLWEHFRPHV
7KLVLQHTXDOLW\KDVWKHRSSRVLWHWUXWKYDOXH6RDMXPSLIOHVVWKDQFRPPDQGIRUXQVLJQHGQXPEHUVPXVW
H[HFXWHDMXPSLQWKLVFDVH7KH
-/
FRPPDQGZLOOQRWGRVR7KHVLJQHGMXPSFRPPDQGVRIWKHSUHYLRXV
VHFWLRQGRQRWZRUNIRUXQVLJQHGQXPEHUV,I$/ + DQG%/ &(+ WKHQD
-/
ZLOOQRW
H[HFXWHDMXPSEHFDXVHLWLVDFWLQJRQ$QXQVLJQHGMXPSLIOHVVWKDQLVQHHGHG
7KH&DUU\)ODJ
,QWKHFDVHRIXQVLJQHGQXPEHUVWKHLQHTXDOLW\$%WXUQVRXWWREHHDVLHUWRWHVWWKDQLWVVLJQHG
FRXQWHUSDUW6LQFHDVXEWUDFWLRQRIXQVLJQHGQXPEHUV$%FDQQRWJRRXWRIUDQJHRQWKHKLJKVLGHLWLVRXW
RIUDQJHLIDQGRQO\LILWLVQHJDWLYH2XWRIUDQJHHUURUVIRUXQVLJQHGQXPEHUVDUHFDOOHGFDUU\HUURUV+HQFH
$%LVWUXHLIDQGRQO\LIWKHVXEWUDFWLRQ$%SURGXFHVDFDUU\HUURU6RDIODJZKLFKVLJQDOVFDUU\HUURUV
ZLOOVLJQDOQHJDWLYHUHVXOWVRIDVXEWUDFWLRQ7KH[SURFHVVRUVKDYHDFDUU\IODJWRLQGLFDWHWKHVHHUURUV
8VLQJ&)WRGHQRWHWKHYDOXHRIWKLVFDUU\IODJZHFDQHDVLO\VWDWHWKHFRQGLWLRQXVHGWRLPSOHPHQWWKH
XQVLJQHGMXPSLIOHVVWKDQFRPPDQGDVMXPSLI&)
/LNHWKHVLJQIODJWKH]HURIODJDQGWKHRYHUIORZIODJWKHFDUU\IODJUHVSRQGVWRFRQGLWLRQVRFFXUULQJ
ZKHQHYHU
$''
RU
68%
DUHXVHG8QOLNHWKHVHRWKHUWKUHHIODJVLWLVXQDIIHFWHGE\WKH
,1&
DQG
'(&
FRPPDQGV
2XWRI5DQJH)ODJ6XPPDU\
$ULWKPHWLFFRPPDQGVVXFKDV
$''
DQG
68%
DUHSHUIRUPHGRQELQDU\ELWVZLWKRXWDQ\LQIRUPDWLRQVSHFLI\LQJ
ZKHWKHUWKHELWVDUHEHLQJXVHGWRUHSUHVHQWVLJQHGRUXQVLJQHGQXPEHUV,WLVWKHUHVSRQVLELOLW\RIWKH
VRIWZDUHWRNHHSWUDFNRIWKLV
:KHQWKHVRIWZDUHXVHVWKHSURFHVVRUWRGRDULWKPHWLFRQVLJQHGQXPEHUVWKHQLWVKRXOGFRQVXOWWKH
RYHUIORZIODJWRGHWHUPLQHZKHWKHURUQRWDQRXWRIUDQJHHUURUKDVRFFXUUHG:KHQWKHVRIWZDUHXVHVWKH
SURFHVVRUWRZRUNRQXQVLJQHGQXPEHUVWKHQWKHVRIWZDUHVKRXOGFRQVXOWWKHFDUU\IODJWRFKHFNIRUDQRXW
RIUDQJHHUURU
7KHKDUGZDUHKDVQRZD\RINQRZLQJZKHWKHUWKHQXPEHUVDUHVLJQHGRUXQVLJQHG$QGLWGRHVQWPDWWHU
)RUH[DPSOHRQRQHE\WHUHJLVWHUVWKHFRPPDQGWRDGG))+WR))+PD\EHFRPLQJIURPVRIWZDUHWKDWLV
ZRUNLQJZLWKVLJQHGQXPEHUV,QWKLVFDVHWKHVXP)(+LVQRWDSUREOHP7KHVRIWZDUHVHHVWKHDULWKPHWLF
WKDWKDVMXVWKDSSHQHGDV
7KLVLVRND\
2QWKHRWKHUKDQGWKHFRPPDQGPD\EHFRPLQJIURPVRIWZDUHWKDWLVXVLQJXQVLJQHGQXPEHUV,QWKLVFDVH
WKHVRIWZDUHVHHVWKHDULWKPHWLFWKDWKDVMXVWKDSSHQHGDV
7KLVLVQRWRND\7KHWUXHDQVZHUKDVJRQHRXWRIWKHRQHE\WHXQVLJQHGUDQJH+HQFHWKH
DGGLWLRQRI))+WR))+FOHDUVWKHRYHUIORZIODJEHFDXVHWKHVLJQHGDULWKPHWLFDQVZHULVRND\DQGVHWVWKH
FDUU\IODJWRQRWLI\VRIWZDUHWKDWWKHUHLVDQXQVLJQHGRXWRIUDQJHHUURU
$VDQRWKHUH[DPSOHVXSSRVHWKDWRQHE\WHUHJLVWHUVUHFHLYHDFRPPDQGWRDGG+WR+7KHVXPLV
+,IWKHFRPPDQGKDVFRPHIURPVRIWZDUHZRUNLQJZLWKXQVLJQHGQXPEHUVWKHQWKHDULWKPHWLFMXVWGRQH
ZLOODSSHDUDV
7KLVLVRND\
6XSSRVHWKDWWKHFRPPDQGKDVFRPHIURPVRIWZDUHZRUNLQJZLWKVLJQHGQXPEHUV7KHQWKHDULWKPHWLF
ORRNVOLNHWKLV
7KLVLVQRWRND\7KHWUXHDQVZHULVRXWVLGHWKHRQHE\WHVLJQHGUDQJHWR7KHKDUGZDUH
VHWVWKHRYHUIORZIODJEHFDXVHWKLVLVDQRXWRIUDQJHHUURULQWKHVLJQHGQXPEHUV\VWHPDQGFOHDUVWKHFDUU\
IODJEHFDXVHWKHUHLVQRRXWRIUDQJHHUURULQWKHXQVLJQHGV\VWHP7KHKDUGZDUHGRHVQRWNQRZZKLFK
V\VWHPWKHVRIWZDUHLVXVLQJVRLWKDVWRWDNHFDUHRIERWKIODJV
%RWKWKHFDUU\DQGWKHRYHUIORZIODJVDUHRXWRIUDQJHLQGLFDWRUIODJV7KHFDUU\IODJLVVHWLIWKHDULWKPHWLF
LQWHUSUHWHGLQWKHXQVLJQHGV\VWHPKDVSURGXFHGDQRXWRIUDQJHHUURU7KHRYHUIORZIODJLVVHWLIWKH
DULWKPHWLFLQWHUSUHWHGLQWKHVLJQHGV\VWHPKDVSURGXFHGDQRXWRIUDQJHHUURU
6WLOO0RUH-XPS&RPPDQGV
*LYHQWKDWZHQHHGDGLIIHUHQWFRPPDQGIRUMXPSLIOHVVWKDQIRUXVHZLWKXQVLJQHGQXPEHUVZHDOVR
QHHGDGLIIHUHQWPQHPRQLF0RUHRYHUFRQVLGHULQJDOOWKHRWKHUMXPSFRQGLWLRQVJUHDWHUWKDQJUHDWHU
WKDQRUHTXDOWRHWFZHQHHGDZKROHQHZVHWRIFRPPDQGVDQGPQHPRQLFV7RV\VWHPDWL]HWKLVQHZVHW
WKHZRUGVDERYHDQGEHORZDUHXVHGLQSODFHRIWKHSKUDVHVJUHDWHUWKDQDQGOHVVWKDQ+HQFHWKHMXPSLI
OHVVWKDQFRPPDQGZKLFKZRUNVIRUXQVLJQHGQXPEHUVXVHVWKHPQHPRQLF
-%
IRUMXPSLIEHORZ7KH
IXOOVHWRIWKHVHFRPPDQGVLVDVIROORZV
-%EHORZ($;(%;
-%(EHORZRUHTXDO($; (%;
-$DERYH($;!(%;
-$(DERYHRUHTXDO($; (%;
-1%QRWEHORZ($;"(%;
-1%(QRWEHORZRUHTXDO($;"(%;
-1$QRWDERYH($;"(%;
-1$(QRWDERYHRUHTXDO($;"(%;
/LQX[
V
ILOHV
2QHRIWKHLQWHUPHGLDWHVWHSVWKDWJFFXVHVLQWKHWUDQVODWLRQRID&VRXUFHSURJUDPLQWRDQDRXWILOHLVDQ
DVVHPEO\ODQJXDJHILOH7KLVILOHLVWKHRXWSXWRIWKHFRPSLOHUSURSHUDQGWKHLQSXWWRWKHDVVHPEOHUJDV7R
VHHWKHVHDVVHPEOHUILOHVRQHFDQGLUHFWJFFWRRXWSXWWKHDVVHPEOHUILOHRQFHWKLVVWDJHLVUHDFKHGXVLQJWKH
6
VZLWFK7KLVRXWSXWKDVD
V
ILOHH[WHQVLRQ&RQVLGHUIRUH[DPSOHWKHIROORZLQJ&SURJUDPPXOWF
3URJUDP
PDLQ
^
LQW[\
UHJLVWHULQWDEF
SULQWI(QWHUDQXPEHU
VFDQIG[
SULQWI0XOWLSO\LWE\ZKDWQXPEHU"
VFDQIG\
D [
E \
F
ZKLOHE
^
F FD
E E
`
SULQWI7KHUHVXOWLVG?QF
`
6XSSRVHWKDWWKHQXPEHUV[ DQG\ DUHHQWHUHG7KLVSURJUDPDFWXDOO\RXWSXWVWKHFRUUHFWDQVZHU
DQGWRFDOFXODWHLWWKHORRSH[HFXWHV
WLPHV1RWHWKDW
(DFKWLPHWKHUXQQLQJWRWDO
E
H[FHHGVWKHWXUQRYHUYDOXHRI
LVGURSSHGIURPWKHWRWDO7KLV
KDSSHQVIRXUWLPHV7KHUHVXOWLQJYDOXHRIELV
ZKLFKLVWKHWZRVFRPSOHPHQWUHSUHVHQWDWLRQRI
2QHRIWKHPDLQSUDFWLFDOXVHVRIDVVHPEO\ODQJXDJHSURJUDPPLQJLVLQWKHFRGLQJRIORRSVWKDWH[HFXWHVR
PDQ\WLPHVWKDWDQLPSURYHPHQWLQWKHWLPHUHTXLUHGIRUHDFKH[HFXWLRQDFWXDOO\PDNHVDQRWLFHDEOH
GLIIHUHQFHLQWKHWRWDOUXQWLPH,QDWHVWRQD0+]3HQWLXPWKHîFDOFXODWLRQUHTXLUHG
VHFRQGV7RREWDLQWKHDVVHPEO\FRGHIRUWKLVSURJUDPRQHFDQXVHWKHFRPPDQG
OLQX[ER[JFF6PXOWF
7KHUHVXOWLQJILOH
PXOWV
LVWKHDVVHPEO\FRGHZKLFKZDVXVHGE\JFFWRSURGXFHWKHH[HFXWDEOHILOH7KH
V\QWD[RIWKLVDVVHPEO\FRGHGLIIHUVIURPWKDWRIWKHZLGHO\XVHG,QWHODVVHPEO\ODQJXDJHXVHGLQWKLVERRN
EXWLWFDQVWLOOEHGHFLSKHUHG&RPPHQWVIRUWKLVSXUSRVHDUHDGGHG7KHILUVWOLQHXVHV
7(67
,WLVDQ
LQVWUXFWLRQ
3URJUDP
/
WHVWOHVLHVL,V(6,
MQH/,IQRWJRWR/
MPS/RWKHUZLVHJRWR/
/
DGGOHE[HGL/HW(', (',(%;
GHFOHVL/HW(6, (6,
MPS/*RWR/
/
VLPLODUWR
&03
ZKLFKZLOOEHGLVFXVVHGLQWKHQH[WFKDSWHU
HVL
UHIHUVWRWKH(6,UHJLVWHU/LNH
&03
WKH
7(67
FRPPDQGVHWVWKH]HURIODJLI(6, 7KH
O
DWWKHHQGRIPDQ\RIWKHVHFRPPDQGVLVXVHGWRVSHFLI\
WKHOHQJWKRIWKHRSHUDQGORQJLQWKLVFDVHDQGWKDWPHDQVIRXUE\WHV1RWLFHWKDWWKHDGGXVHVD
&200$1'VRXUFHGHVWLQDWLRQRSHUDQGRUGHUWKHRSSRVLWHRIWKDWXVHGLQWKLVERRN
7KHORRSFRQVLVWVRIWKHVL[LQVWUXFWLRQVVKRZQ,IZHQRWHWKDWZHFDQWDNHVRPHMXPSVRXWRIWKHORRSE\
WHVWLQJZKHWKHU(6,LV]HURDWWKHHQGRIWKHORRSZHFDQUHGXFHWKHORRSIURPVL[LQVWUXFWLRQVWRWKUHH7KH
RQO\FKDQJHPDGHZDV
3URJUDP
/
WHVWOHVLHVL
MQH/
MPS/
/
DGGOHE[HGL
GHFOHVL
MQH/,I(6,LVQWJRWR/
/
WRWKHMXPSDWWKHHQGRIWKHORRS7KHPRGLILHGILOHZDVFRPSLOHGXVLQJXVLQJJFF
OLQX[ER[JFFPXOWV
7KHUHVXOWLQJSURJUDPZDVUXQDQGWKHFRPSXWDWLRQRIîWRRNVHFRQGVRQWKHVDPHPDFKLQH
7KH3HQWLXPV'XDO3LSHOLQH
,IZHORRNDWWKHWLPHIRUHDFKLQVWUXFWLRQWRH[HFXWHLQWKHILUVWFDVHZHJHW
7KLVDULWKPHWLFDVVXPHVWKDWWKHSURJUDPVSHQWDOORILWVWLPHLQWKHORRS&RPSDULQJWKLVZLWKWKHOHQJWKRI
RQHFORFNF\FOH
ZHILQGWKHDPD]LQJUHVXOWWKDWWKHWLPHIRUWZRLQVWUXFWLRQVWRH[HFXWHQDQRVHFRQGVLVMXVWDOLWWOH
RYHURQHFORFNF\FOH6LQFHRQHLQVWUXFWLRQSHUFORFNF\FOHLVLGHDOXQGHURUGLQDU\FLUFXPVWDQFHVZKDWZH
KDYHKHUHLVVRPHWKLQJVSHFLDO,WLVDQLOOXVWUDWLRQRIWKH3HQWLXPVGXDOSLSHOLQH:KHQSRVVLEOHWKH
3HQWLXPSDLUVLQVWUXFWLRQVRIIDQGH[HFXWHVWZRDWRQFH7KLVLVKRZUDWHVRIPRUHWKDQRQHLQVWUXFWLRQSHU
FORFNF\FOHFDQEHDFKLHYHG7KHUHLVDFWXDOO\DQRWKHUSLSHOLQHIRUIORDWLQJSRLQWQXPEHUV7KHLQVWUXFWLRQ
SDLULQJDOVRH[SODLQVZK\WKHLPSURYHPHQWZHPLJKWKDYHH[SHFWHGZKHQZHUHGXFHGWKHQXPEHURI
LQVWUXFWLRQVLQWKHORRSIURPVL[WRWKUHHGLGQRWPDWHULDOL]H:KDWKDSSHQHGDSSDUHQWO\ZDVWKDWWKHQXPEHU
RILQVWUXFWLRQSDLUVZHQWIURPWKUHHWRWZRRQHRIWKHWZRSDLUVEHLQJKDOIHPSW\7KHWLPH
QDQRVHFRQGVLVRIQDQRVHFRQGV7KLVLVDSSUR[LPDWHO\WZRWKLUGVVXJJHVWLQJWKHXVHRIWZR
LQVWUXFWLRQSDLUVLQVWHDGRIWKUHHIRUHDFKSDVVWKURXJKWKHORRS
&KDSWHU0$&+,1(/$1*8$*(
0DFKLQHODQJXDJHLVWKHODQJXDJHVHHQE\WKHSURFHVVRU7KHE\WHVIHWFKHGLQWKHIHWFKH[HFXWHF\FOHDUH
E\WHVRIPDFKLQHFRGH$VVHPEO\ODQJXDJHFDQEHGHILQHGDVODQJXDJHZKLFKJLYHVWKHSURJUDPPHUFRQWURO
RYHUWKHPDFKLQHFRGH$VVHPEO\ODQJXDJHVSHFLILHVPDFKLQHFRGH7KLVFKDUDFWHULVWLFIHDWXUHRIDVVHPEO\
ODQJXDJHZLOOQRWEHDSSDUHQWZLWKRXWVRPHIDPLOLDULW\ZLWKPDFKLQHODQJXDJH,QWKLVFKDSWHUWKHPDLQ
IHDWXUHVRI[PDFKLQHFRGHDUHSUHVHQWHG
7KHSURFHVVRIFRQYHUWLQJDVVHPEO\FRGHLQWRPDFKLQHFRGHLVFDOOHGDVVHPEOLQJ$SURJUDPZKLFKWDNHV
DVVHPEO\ODQJXDJHDVLQSXWDQGSURGXFHVPDFKLQHODQJXDJHDVRXWSXWLVFDOOHGDQDVVHPEOHU,WLVVLPLODUWR
DFRPSLOHUEXWLWRSHUDWHVDWDORZHUOHYHO
&RQYHUVHO\WKHSURFHVVRIWXUQLQJPDFKLQHFRGHLQWRDVVHPEO\ODQJXDJHLVFDOOHGXQDVVHPEOLQJ$SURJUDP
ZKLFKGRHVWKLVLVFDOOHGDQXQDVVHPEOHU
$VVHPEOLQJ6LPSOH3URJUDPV
7RWHOOWKHZKROHVWRU\RIWKHPDFKLQHFRGHIRUWKH[SURFHVVRUVLQYROYHVDORWRIWULFN\GHWDLO+RZHYHULW
LVTXLWHHDV\WRVSHFLI\PDFKLQHFRGHIRUWKHVXEVHWRIWKH[DVVHPEO\ODQJXDJHXVHGLQDOOWKHQXPEHUHG
SURJUDPVXVHGLQVHFWLRQVWKURXJK&RGLQJIRUWKLVSRUWLRQRI[DVVHPEO\ODQJXDJHLVJLYHQLQ
7DEOH
0RVWRIWKHPDFKLQHFRGHLVJLYHQLQKH[EXWVRPHRIWKHE\WHVKDYHWREHJLYHQLQELQDU\7KH
QXPEHURIE\WHVYDULHVIURPRQHWRVL[7KHILUVWOLQHRIWKHWDEOHIRUH[DPSOHVKRZVWKDWWKHFRGHIRU
029
UHJUHJLVDWZRE\WHFRGHWKHILUVWRIZKLFKLVJLYHQLQKH[DQGWKHVHFRQGLQELQDU\7KHE\WHVJLYHQLQ
ELQDU\DUHWKRVHZKLFKLQFRUSRUDWHUHJLVWHUFRGHV666LQWKHELQDU\FRGLQJUHSUHVHQWVWKHWKUHHELWFRGHIRU
WKHVRXUFHUHJLVWHU'''UHSUHVHQWVWKHWKUHHELWFRGHIRUWKHGHVWLQDWLRQUHJLVWHU7KHUHJLVWHUFRGHVDUH
JLYHQDWWKHERWWRP(DFKLPPRFFXUULQJLQDFRPPDQGVSHFLILHVIRXUDGGLWLRQDOE\WHVZKLFKPXVWEH
VXSSOLHGE\WKHSURJUDPPHU([DPSOHVIROORZ8VLQJ
7DEOH
3URJUDP
FDQEHPDFKLQHDVVHPEOHGDV
IROORZV
>@
,IUHJLV($;WKHUHLVDVKRUWHUPDFKLQHFRGH
5HJLVWHU&RGHV
7KHILUVWE\WHRIWKHILUVWFRPPDQG%$LVHQFRGHGXVLQJWKH'''FRGHJLYHQIRU
029
UHJLPP7KH
'''ELWVDUHILOOHGLQZLWKWKHUHJLVWHUFRGHIRU(';ZKLFKUHVXOWVLQDELQDU\FRGHRIRUD
KH[FRGHRI%$
7KHVHFRQG
029
FRPPDQG
029(&;($;
LVHQFRGHGDV&XVLQJWKHILUVWOLQHRIWKHFKDUWZKLFKVSHFLILHV
WKHVHFRQGE\WHDV666'''($;LVWKHVRXUFHUHJLVWHUDQGLWVFRGHLV(&;LVWKHGHVWLQDWLRQ
UHJLVWHUDQGLWVFRGHLV7KHUHVXOWLQJVHFRQGE\WHLVZKLFKLV&
3URJUDP
/DEHO6RXUFH&RGH$GGUHVV0DFKLQH&RGH
7DEOH6RPH%LW0DFKLQH&RGLQJ
)LUVW%\WH
6HFRQG%\WH
0RUH
029
UHJUHJ
666'''
029
UHJLPP
'''
BBB
$''
UHJUHJ
666'''
$''
UHJLPP
'''
>@
BBB
68%
UHJUHJ
666'''
68%
UHJLPP
'''
>@
BBB
,1&
UHJ
'''
'(&
UHJ
'''
,1
($;>';@
('
287
>';@($;
()
5(7
&
-03
LPP
(
BBB
-=
LPP
)
BBB
-1=
LPP
)
BBB
-6
LPP
)
BBB
-16
LPP
)
BBB
029(';%$
,1($;>';@('
029(&;($;&
,1($;>';@('
029(';($;&
25'68%($;(&;%&
-=*&'')
)
-161;7)
029($;(&;&
029(&;(';%'
1;7029(';($;'&
-0325')((
))))
))
*&'029($;(';'
029(';%$
$
287>';@($;%()
5(7&&
/LWWOH(QGLDQ,PPHGLDWH&RGHV
7KHILUVWDQGODVW
029
FRPPDQGVLQWKLVSURJUDPERWKFRQWDLQLPPHGLDWHYDOXHV%RWKRIWKHVHVWRUHIRXU
E\WHYDOXHVLQIRXUE\WHUHJLVWHUV1RWLFHLQWKHODVW
029
FRPPDQGWKHIRXUE\WHLPPHGLDWHYDOXH
+LVVWRUHGDV
5HODWLYH-XPSV
7KHMXPSHQFRGLQJXVHGE\[SURFHVVRUVXVHVUHODWLYHUDWKHUWKDQDEVROXWHDGGUHVVHVZKHQWKLVLVIHDVLEOH
$OOWKHMXPSLQVWUXFWLRQVLQWKLVSURJUDPHQFRGHMXPSVDVUHODWLYHMXPSV$QDEVROXWHMXPSZRXOGVSHFLI\
DQDFWXDODGGUHVVDVWKHWDUJHWRIDMXPSZKHUHDVUHODWLYHHQFRGLQJVSHFLILHVWKHQXPEHURIE\WHVWRMXPS
VWDUWLQJIURPWKHEHJLQQLQJRIWKHQH[WLQVWUXFWLRQ7KLVYDOXHPD\EHLQWHUSUHWHGDVDVLJQHGQXPEHUD
QHJDWLYHYDOXHIRUDEDFNZDUGVMXPS7KHHQFRGHGYDOXHLVDGGHGE\WKHSURFHVVRUWRWKHDGGUHVVRIWKHQH[W
LQVWUXFWLRQWRREWDLQWKHDGGUHVVRIWKHLQVWUXFWLRQEHLQJMXPSHGWR)RUH[DPSOHWKH
-031;7
LQVWUXFWLRQ
KDVDOLWWOHHQGLDQHQFRGHGFRXQWLQJIRXUE\WHVIURPWKHE\WHWKDWEHJLQVWKH
029($;(&;
EULQJV
\RXWRWKHE\WHWKDWEHJLQV
029(';($;
7KLVFRPPDQGLVWKHWDUJHWRI
-031;7
7KH
-0325'
LQVWUXFWLRQFRQWDLQVWKHUHODWLYHMXPSYDOXH))))))(+ &RXQWLQJEDFNZDUGVE\WHVIURPWKH
E\WHWKDWEHJLQVWKH
029($;(';
EULQJV\RXWRWKHE\WHWKDWLVWKHILUVWE\WHRIWKHFRGHIRU
68%($;
(&;
6KRUW-XPSV
7KHUHODWLYHMXPSYDOXHVLQWKHSURJUDPDUHHDFKHQFRGHGLQIRXUE\WHVLQVSLWHRIWKHIDFWWKDWWKHYDOXHV
DQGILWHDVLO\LQWKHRQHE\WHVLJQHGUDQJH7KHUHDUHDOWHUQDWHHQFRGLQJVZKLFKFDQEHXVHGWR
VDYHVSDFHRQRQHE\WHMXPSV7KHVHMXPSVDUHFDOOHGVKRUWMXPSV7KHVKRUWMXPSHQFRGLQJIRUWKH
-16
1;7
LQVWUXFWLRQIRUH[DPSOHLV7KHPDFKLQHFRGHVIRUWKHFRQGLWLRQDOVKRUWMXPSVFDQEHREWDLQHG
IURPWKHLUELWFRXQWHUSDUWVE\GURSSLQJWKH2)E\WHDQGVXEWUDFWLQJ+IURPWKHVHFRQGE\WH7KHVKRUW
FRGHIRUWKH
-03
FRPPDQGLV(%,Q(GOLQDVDORQJMXPSFDQEHFRQYHUWHGWRDVKRUWMXPSXVLQJWKHVNH\
,Q1$60WKHXQDGRUQHG
-03
LQVWUXFWLRQDOZD\VPHDQVDVKRUWMXPS$
-03
LQVWUXFWLRQZKLFKFDQWEH
HQFRGHGLQRQHE\WHJHWVDQHUURUPHVVDJH7RVSHFLI\DMXPSZKLFKXVHVWKHORQJHUHQFRGLQJ
-031($5
LV
XVHG,QWKHSUHVHQWFRQWH[WMXPSLQJIDUZRXOGVHHPWRPDNHPRUHVHQVHWKDQMXPSLQJQHDUEXWDIDU
MXPSDFWXDOO\UHIHUVWRDMXPSZKLFKXVHVDEVROXWHHQFRGLQJDVZLOOEHVHHQLQ
FKDSWHU
6LQFHPRVWMXPSVDUHQRPRUHWKDQE\WHVLWPDNHVVHQVHWRKDYHDVSHFLDOHQFRGLQJIRUWKHP7KH
LQVWUXFWLRQVHWIRUWKHDFWXDOO\KDGRQO\WKHVKRUWYHUVLRQVRIWKHFRQGLWLRQDOMXPSV7KH2)ORQJMXPS
FRGHVGLGQRWDSSHDUXQWLOWKH
2SFRGH6SDFH
7KHPDFKLQHFRGHVJLYHQLQWKHODVWVHFWLRQFDQEHXVHGWRDVVHPEOHDJUHDWYDULHW\RIVLPSOHSURJUDPV2Q
WKHRWKHUKDQGWDNHQWRJHWKHUWKH\UHSUHVHQWRQO\DVPDOOSRUWLRQRIWKHFRPSOHWH[LQVWUXFWLRQVHW,QWKLV
VHFWLRQDQRYHUYLHZRIWKHHQWLUHVHWRI[PDFKLQHFRGHVLVJLYHQ7DEOHVKRZVZKDWLQIRUPDWLRQLV
FRQYH\HGE\WKHILUVWE\WHRIPDFKLQHFRGH
0RVWRIWKHHQWULHVLQWKHWDEOHFRQWDLQERWKPQHPRQLFDQGRSHUDQGLQIRUPDWLRQ,QDIHZFDVHVWKLV
LQIRUPDWLRQVSHFLILHVERWKFRPSOHWHO\7KHHQWU\LQWKHWDEOHIRUWKHE\WH((IRUH[DPSOHLV
287
>';@$/
,QRWKHUFDVHVWKHPQHPRQLFLVJLYHQEXWDFODVVRIDOORZDEOHRSHUDQGVDUHGHVFULEHGXVLQJOHWWHUNH\V
z
UVWDQGVIRUUHJLVWHU
z
PVWDQGVIRUPHPRU\
z
LVWDQGVIRULPPHGLDWH
z
EVWDQGVIRUE\WH
z
VWDQGVIRUE\WHV
z
YPHDQVELWVRUELWV
z
HPHDQV(LQELWVDQGGLVDSSHDUVLQELWV
7KHVHNH\VZHUHXVHGE\6WHSKHQ0RUVHLQWKHH[FHOOHQWERRN$UFKLWHFWXUH
&RQVLGHUWKHHQWU\LQWKHWDEOHIRUWKHE\WH
$''
UYUPY
6LQFHWKHILUVWRSHUDQGSRVLWLRQFRQWDLQVUYWKLVLQGLFDWHVWKDWWKHILUVWRSHUDQGPXVWEHDRUDELW
UHJLVWHU6LQFHWKHVHFRQGSRVLWLRQFRQWDLQVUPYWKHVHFRQGRSHUDQGPXVWEHDRUELWUHJLVWHURU
PHPRU\RSHUDQG6LQFH(',DQG($;DUHELWUHJLVWHUVZHVHHWKDW
$''(',($;
LVDQH[DPSOHRIDQ
LQVWUXFWLRQZKLFKFDQEHHQFRGHGZLWKFRGHZKRVHILUVWE\WHLV$QRWKHUH[DPSOHLV
$''(',>+@
7KHW\SHRILQIRUPDWLRQFRQYH\HGE\WKHILUVWE\WHRIFRGHFDQEHEURNHQGRZQLQWRFDVHV
,QDIHZFDVHVWKLVRQHE\WHVXIILFHVWRFRPSOHWHO\VSHFLI\DQLQVWUXFWLRQ)IRUH[DPSOHVSHFLILHV
WKHKDOWLQVWUXFWLRQ
+/7
,QPDQ\RWKHUFDVHVDOWKRXJKWKHILUVWE\WHGHWHUPLQHVZKLFKRSHUDWLRQLVWREHSHUIRUPHGLWGRHVQRW
VSHFLI\WKHRSHUDQGV,QWKHVHFDVHVDVHFRQGE\WHLVRIWHQVXIILFLHQWWRFDUU\WKHRSHUDQGLQIRUPDWLRQ
7KLVVHFRQGE\WHLVFDOOHGWKH0RG50E\WH)RUH[DPSOHLIWKHILUVWE\WHLVWKHQWKHWDEOHHQWU\LV
029
UPYUY,QDGGLWLRQWRVSHFLI\LQJWKHRSHUDWLRQ
029
WKHUPYUYRSHUDQGNH\VFRQYH\LQIRUPDWLRQ
RQKRZWKH0RG50E\WHLVWREHLQWHUSUHWHG
7KHUHDUHDOVRFDVHVZKHUHWKHILUVWE\WHGRHVQRWIXOO\VSHFLI\DQRSHUDWLRQEXWPHUHO\DJHQHUDOW\SH
RIRSHUDWLRQDQGWKH0RG50E\WHLVXVHGWRFRPSOHWHWKHVSHFLILFDWLRQRIWKHRSHUDWLRQDVZHOODV
FDUU\RSHUDQGLQIRUPDWLRQ)RUH[DPSOHLIWKHILUVWE\WHLV&WKHQWKHWDEOHHQWU\LV6KLIWUPYLE,Q
WKHVHFDVHVWKHIXOOLQWHUSUHWDWLRQRIWKH0RG50E\WHUHTXLUHVPRYLQJWR
7DEOH
6KLIWLVQRWD
PQHPRQLF,WLVRQO\DSRLQWHULQWR
7DEOH
7KLVLVLQGLFDWHGLQWKHWDEOHE\WKHIDFWWKDWQRWDOORILWV
OHWWHUVDUHXSSHUFDVH
,IWKHILUVWE\WHLV2)WKHQDZKROHUDIWRISRVVLELOLWLHVLVRSHQHGXS7KHLQIRUPDWLRQFRQYH\HGE\2)
LVPHUHO\JRWR7DEOH
,IWKHILUVWE\WHLVLQWKHUDQJH'')WKHQWKHFRPPDQGLVDIORDWLQJSRLQWFRPPDQG7KHVH
FRPPDQGVDUHQRWGHDOWZLWKLQWKLVWH[W
7KHUHDUHDOVRSUHIL[E\WHVZKLFKPRGLI\WKHVXEVHTXHQWFRPPDQGV,Q7DEOHWKHSUHIL[E\WHV
VXFKDVWKH
/2&.
SUHIL[)DUHVKRZQDVERWWRPVLWWHUV
7KHVHYDULRXVFDVHVDUHGHDOWZLWKRQHE\RQHLQWKHIROORZLQJVHFWLRQV
7KH0RG50%\WH
7KH0RG50E\WHLVXVHGWRFDUU\RSHUDQGLQIRUPDWLRQZKHQWKHILUVWE\WHFDQQRWGRVR7KH0RG50E\WH
FRQVLVWVRIWKUHHSDUWV
%LWVDQGDUHWKH0RGELWV:KHQWKH0RGELWVDUHWKH0ELWVGHVLJQDWHDUHJLVWHU2WKHUZLVH
WKH0ELWVDUHXVHGIRUPHPRU\FRGLQJ
%LWVDQGDUHWKH5RUUHJLVWHUELWVDQGDUHRIWHQGHVLJQDWHGXVLQJDVODVKQRWDWLRQU
%LWVDQGDUHWKH0RUPHPRU\ELWVDQGDUHXVHGWRVSHFLI\RUKHOSVSHFLI\DPHPRU\ORFDWLRQ
H[FHSWZKHQWKH0RGELWVDUH
UYUPY&RGLQJ
7KHHQWU\LQ7DEOHIRUWKHE\WHLV
7DEOH)LUVW%\WHRI2SFRGH6SDFH
0RG
5
0
$''
UYUPY
:HFDQXVHWKLVHQWU\WRDVVHPEOHWKH
$''(',($;
FRPPDQG7KH
$''(',($;
FRPPDQGUHTXLUHVD
0RG50E\WH7KHPLQWKHVHFRQGRSHUDQGSRVLWLRQVSHFLILHVQRWRQO\WKDWWKHVHFRQGRSHUDQGPD\EHD
PHPRU\RSHUDQGEXWDOVRWKDWLWPXVWEHHQFRGHGLQWKH0ELWVRIWKH0RG50E\WH6LQFHWKHVHFRQG
RSHUDQGLVWKHUHJLVWHU($;WKHELWFRGHIRU($;RFFXSLHVWKH0ELWVLQWKH0RG50E\WH6LQFHZH
DUHXVLQJDUHJLVWHUIRUWKH0ELWVWKHWZR0RGELWVPXVWEH7KHILUVWRSHUDQGZKLFKDVWKHULQGLFDWHV
PXVWEHDUHJLVWHULVWKHUHIRUHHQFRGHGLQWKH5ELWVRIWKH0RG50E\WH(',LVWKHILUVWRSHUDQGDQGLWV
FRGHLV&RQVHTXHQWO\WKH0RG50E\WHLV
&RPELQLQJWKHZLWKWKH0RG50E\WH\LHOGVWKHFRGH)IRU
$''(',($;
,ILQWKLVFRGHZHFKDQJHWKHWZR0RGELWVIURPWRZHJHWWKHFRGHIRU
$''(',>($;@
+HUHWKH0
ELWVDUHXVHGIRUDQDFWXDOPHPRU\RSHUDQG7KHFRGHVDQGDUHXVHGWRFRGHIRULPPHGLDWH
GLVSODFHPHQWVVXFKDV
$''(',>($;@
ZKHUHWKHGLVSODFHPHQWLVHLWKHURIW\SHLERULY+HQFHWKH
FRGHIRU
$''(',>($;@
LV7KHFRGHIRU
$''(',>($;+@
LV%
,IWKLVFRGLQJZHUHGRQHXQLIRUPO\KRZHYHULWZRXOGOHDYHQRURRPLQWKHFRGLQJVSDFHIRUWKH
FRPSOLFDWHGIRUPDWVVHHQLQ
FKDSWHU
VHFWLRQ
7RPDNHVSDFHIRUFRGLQJWKHVHIRUPDWVWKHFRGHIRU
WKH(63UHJLVWHULVUHPRYHGWRSURYLGHDQHVFDSHLQWRDQRWKHUE\WHRIWKHFRGLQJVSDFHFDOOHGWKH6,%E\WH
UPYUY&RGLQJ
:KHQWKHUPYDQGUYNH\VDUHUHYHUVHGWKLVWXUQVWKHWKUHHELWFRGHVDURXQG$VDQH[DPSOHVXSSRVHZH
ZDQWWRFRGHWKHLQVWUXFWLRQ
029(',($;
7KHHQWU\IRU%PDWFKHVDQGFRXOGEHFRGHGZLWKWKHVDPH
0RG50E\WHDVWKH
$''(',($;
FRGH%XWWKHHQWU\DOVRPDWFKHV
029
UPYUY
8VLQJWKLVHQWU\ZHQRWHWKDWWKHILUVWRSHUDQGPD\EHDUHJLVWHUDQGLVFRGHGLQWKH0ELWV+HQFHWKHFRGH
IRU(',JRHVLQWRWKHOHDVWVLJQLILFDQWELWV7KHVHFRQGRSHUDQG($;LVFRGHGLQWKH5ELWV
+HQFHXVLQJWKHHQWU\LQ7DEOHZHREWDLQWKHHQFRGLQJ&IRU
029(',($;
1RQUHJLVWHU5%LWV
,QVRPHFDVHVWKHILUVWE\WHLVLQVXIILFLHQWWRVSHFLI\DQRSHUDWLRQEXWWKH5ELWVRID0RG50E\WHDUHXVHG
WRFRPSOHWHWKHVSHFLILFDWLRQ7KHVHFDVHVDUHOLVWHGLQ
7DEOH
68%(&;
LVDQH[DPSOH7KHHQWU\LQ
7DEOHIRULV
,PPHG
UPYLE
6LQFHWKHURZRI
7DEOH
ODEHOHG,PPHGKDVD
68%
XQGHUU ZHOHDUQWKDWLQVWUXFWLRQVPDWFKLQJ
0RG
5
0
)+
0RG
5
0
&+
68%
UPYLE
FDQEHFRGHGXVLQJDVWKHILUVWE\WHDQGIRUWKH5ELWVRIWKH0RG50E\WH6LQFHWKHILUVWRSHUDQG
(&;LVQRWPHPRU\WKH0RGELWVPXVWEHDQGWKH0ELWVZLOOEHILOOHGZLWKWKHFRGHIRU(&;6R
WKHUHTXLUHG0RG50E\WHLV
7KHLEVWDQGVIRUDQLPPHGLDWHE\WH6RWKHFRGHIRU
68%(&;
LV(
6SDFH2)«
2QDQWKHE\WH2)FRGHVIRUWKHLQVWUXFWLRQ
323&6
2QVXEVHTXHQWSURFHVVRUVWKLVLQVWUXFWLRQZDV
UHPRYHGWRPDNHWKH2)FRGHDYDLODEOHIRUDVLJQLILFDQWH[SDQVLRQLQWKHLQVWUXFWLRQVHW7DEOHUHYHDOV
WKHVSDFHZKLFKZDVRSHQHGXS/LNH7DEOHLWVKRZVWKHLQIRUPDWLRQFRQYH\HGE\DVLQJOHE\WHLQWKLV
FDVHWKHE\WHIROORZLQJDQLQLWLDO2)E\WH$IHZRIWKHLQVWUXFWLRQVLQ7DEOHDSSHDUHGILUVWRQWKH
WKHRUWKH3HQWLXPEXWPRVWRIWKHPDSSHDUHGILUVWRQWKH7KHEXONRIWKHLQVWUXFWLRQVQHZWR
WKHDUHLQ7DEOH
$VZLWK7DEOHVRPHWLPHVRQHHQWU\VSHFLILHVH[DFWO\RQHLQVWUXFWLRQ)RUH[DPSOH2)&$LVWKH
FRGHIRUWKHLQVWUXFWLRQ
%6:$3(';
%\WH6:$3WKH(';UHJLVWHU
6RPHWLPHVD0RG50E\WHLVQHHGHGWRFRQYH\RSHUDQGLQIRUPDWLRQ7KH
;$''
LQVWUXFWLRQZKRVHILUVW
WZRE\WHVDUH2)&LVDQH[DPSOHRIWKLV
6RPHWLPHVD0RG50E\WHLVXVHGWRVSHFLI\DQRSHUDWLRQ)RUH[DPSOHLIWKHILUVWWZRE\WHVRIWKH
LQVWUXFWLRQDUH2)WKHQZHPXVWFKHFN5ELWVRIWKH0RG50E\WHWRGHWHUPLQHWKHRSHUDWLRQ
)URP
7DEOH
ZHVHHWKDWLIWKHUHJLVWHUELWVLQWKH0RG50E\WHZHUHWKHQWKHLQVWUXFWLRQZRXOG
EHDQ
/,'7
LQVWUXFWLRQ/RDGWKH,QWHUUXSW'HVFULSWRU7DEOH
7DEOH,QVWUXFWLRQV6SHFLILHGE\5%LWV
U
,PPHG
$''
25
$'&
6%%
$1'
68%
;25
&03
6KLIW
52/
525
5&/
5&5
6+/
6+5
6$5
8QDU\
7(67L
127
1(*
08/
,08/
',9
,',9
,QF'HF
,1&
'(&
,QGLU
,1&
'(&
&$//P
&$//)$5P
-03
-03)$5
386+
0RG
5
0
(+
7DEOH6SDFH
6RPHRIWKHFRGHVUHIHUWR00;LQVWUXFWLRQV7KHVHLQVWUXFWLRQVDUHGLVFXVVHGLQWKH,QWHOERRN7KH
&RPSOHWH*XLGHWR00;7HFKQRORJ\
:HOHDUQWKDWLQVWUXFWLRQVPDWFKLQJ
7DEOH
FRQWDLQ3HQWLXPDQG00;LQVWUXFWLRQVDVZHOODV
LQVWUXFWLRQV)RUH[DPSOHWKH
;$''
DQG
%6:$3
LQVWUXFWLRQVILUVWDSSHDUHGRQWKHDQGWKH
&38,'
DQG
5'76&
ILUVWDSSHDUHGRQWKH3HQWLXP
%LWYV%LW&RGH
7RWKLVSRLQWZHKDYHGLVFXVVHGPDFKLQHFRGHVIRUFRPPDQGVLQYROYLQJELWJHQHUDOUHJLVWHUVRQO\:H
DUHQRZUHDG\WRFRQVLGHUWKHFRGLQJRIWKHELWJHQHUDOUHJLVWHUV
7KH
029(&;($;
FRPPDQGDVQRWHGLQ
VHFWLRQ
FDQEHHQFRGHGDV&7KHFRUUHVSRQGLQJELW
FRPPDQGLV
029&;$;
6XUSULVLQJO\WKHFRGHIRUWKLVFRPPDQGLVDOVR&O7KHZDVGHVLJQHGWR
XVHWKHVDPHHQFRGLQJVIRUWKHELWUHJLVWHUVDVIRUWKHELWUHJLVWHUV&OHDUO\WKHUHLVDSUREOHPZLWK
WKLV:KHQWKHSURFHVVRUIHWFKHVWKHE\WHV&OZKLFKLQVWUXFWLRQVKRXOGEHH[HFXWHG
029(&;($;
RU
029
&;$;"
,WVRKDSSHQVWKDWWKHGHFLVLRQLVEDVHGRQDVLQJOHELWLQWKHSURFHVVRU7KLVELWGHWHUPLQHVZKHWKHU
FRGHLVLQWHUSUHWHGDVELWFRGHLQZKLFKFDVH&PHDQV
029(&;($;
RUELWFRGHLQZKLFKFDVH
&PHDQV
029&;$;
:KHQWKHELWLVVHWLWGRHVQRWPHDQWKDWWKHLQVWUXFWLRQ
029&;$;
LVXQDYDLODEOH7RHQFRGHWKHIDFWWKDW
WKHELWFRGLQJSUHVXPSWLRQLVZURQJDRQHE\WHSUHIL[LVXVHG6RLQELWFRGH&LVWKHFRGH
IRU
029&;$;
6LPLODUO\WKH
029(&;($;
LQVWUXFWLRQLVDYDLODEOHLQELWFRGH7KHFRGHIRULWLV&O
7KLVSUHIL[LVFDOOHGWKHRSHUDQGVL]HSUHIL[,WPHDQVWKDWWKHRSHUDQGVL]HLVQRWWKHGHIDXOWVL]H
7\SLFDOO\WKHELWLVVHWZKLOHUXQQLQJ/LQX[IRUH[DPSOHDQGFOHDUHGZKLOHUXQQLQJ'26([FHSWZKHUH
VSHFLILFDOO\VWDWHGRWKHUZLVHFRGHJLYHQLQWKLVERRNDVVXPHVWKHSURFHVVRUVELWLVVHWIRUWKHELWGHIDXOW
+HQFH&PHDQV
029(&;($;
DQG&PHDQV
029&;$;
1RZWKDWZHVHHKRZWKHFRGH&
FDQKDYHHLWKHURQHRIWZRSRVVLEOHPHDQLQJVLWLVHDV\WRH[SODLQWKHYLQ
7DEOH),QVWUXFWLRQV6SHFLILHGE\5%LWV
U
/RFDO7
6/'7
UP
675
UP
//'7
UP
/75
UP
9(55
UP
9(5:
UP
*OREDO7
6*'7
P
6,'7
P
/*'7
P
/,'7
P
60:6
UP
/06:
UP
%LWV
%7
UPYLE
%76
UPYLE
%75
UPYLE
%7&
UPYLE
7DEOHYV%LW&RGLQJ([DPSOH
%LW&RGH
%LW&RGH
029(&;($;
&
&O
029&;$;
&
&
WKHHQWU\LQWKHILUVWFKDUWIRUWKHFRGH
029
UPYUY
7KHYLQHDFKRSHUDQGPDUNHUVWDQGVIRUYDULDEOHZKHUHYDULDEOHUHIHUVWRWKHIDFWWKDWWKHVL]HPD\EHHLWKHU
RUELWV6LPLODUO\WKHHLQUHJLVWHUGHVLJQDWLRQVVXFKDVH$;UHIHUVWRWKHIDFWWKDWLQELWFRGLQJ
($;LVLQWHQGHGDQGLQELWFRGLQJ$;LVLQWHQGHG
7KH%LW5HJLVWHUV
$OWKRXJKWKHELWDQGELWUHJLVWHUFRPPDQGVDUHIRUFHGWRVKDUHRSFRGHVWKHHLJKWELWUHJLVWHUV
JHQHUDOO\KDYHGHGLFDWHGRSFRGHV)RUH[DPSOHWKHRSFRGH$GHVLJQDWHVDQHLJKWELW
029
LQVWUXFWLRQ7KH
HQWU\LQ7DEOHIRU$LV
029
UEUPE
UEVWDQGVIRUUHJLVWHUE\WHDQGLVFRGHGIRULQWKHUHJLVWHUELWVRIWKH0RG50E\WHUPEVWDQGVIRUUHJLVWHU
RUPHPRU\E\WHDQGLVFRGHGIRULQWKHPHPRU\ELWVRIWKH0RG50E\WH$&LVWKHFRGHIRU
029$/&/
7DEOH
OLVWVWKHHLJKWELWUHJLVWHUFRGHV7KHFRGHIRU&/JRHVLQWRWKH0ELWVDQGWKHFRGHIRU$/JRHV
LQWRWKH5ELWV
&RPELQLQJWKHWZRE\WHV\LHOGV$&
/LQX[
)LOHV
3URJUDPVLQ&ZKLFKLQFOXGHFDOOVWRIXQFWLRQVVXFKDV
SULQWI
RU
VFDQI
UHTXLUHOLQNLQJWRWKH
FRPSLOHGFRGHIRUWKHVHIXQFWLRQV7KLVFRGHLVVWRUHGLQOLEUDULHVVXFKDV
OLEFVR
2QFHWKLVOLQNLQJLV
GRQHWKHSURJUDPEHFRPHVPXFKORQJHU,QRUGHUWRH[DPLQHWKHPDFKLQHFRGHRIDSURJUDPLWLVHDVLHUWR
ORRNDWWKHFRGHEHIRUHWKLVOLQNLQJLVGRQHEHFDXVHWKHUHLVVRPXFKOHVVRILW7KLVFRGHLVVWRUHGLQREMHFW
PRGXOHVZLWKD
R
ILOHH[WHQVLRQ7KHDQDORJRXVILOHVLQ'26DUHWKH2%-ILOHV7RLQVWUXFWWKHJQX&
FRPSLOHUWRSURGXFHD
R
ILOHWKHFVZLWFKFDQEHXVHG7KHFRPPDQG
OLQX[ER[JFFFPXOWF
SURGXFHVD
PXOWR
ILOH7KLVILOHFRQWDLQVWKHPDFKLQHFRGHRIWKHSURJUDPLQDGGLWLRQWRWDEOHVZKLFK
DOORZWKHOLQNHUWRGRLWVMRE
7RH[DPLQHDQREMHFWFRGHILOHRQHPD\XVHHLWKHUWKHRESURJUDPREMHFWGXPSZKLFKFRPHVZLWKWKLV
ERRNRUWKHRGSURJUDPRFWDOGXPSZKLFKLVDVWDQGDUG8QL[XWLOLW\7RJHWRGWRGLVSOD\LQKH[XVHWKH
VZLWFKHVW[DQG$[
OLQX[ER[RGW[$[PXOWR
7DEOH&RGHVIRU%LW5HJLVWHUV
&RGHVIRU%LW5HJLVWHUV
$/
$+
&/
&+
'/
'+
%/
%+
0RG
5
0
REKDVQRVZLWFKHV
OLQX[ER[REPXOWR
&KDSWHU0(025<
,Q
FKDSWHU
VHFWLRQ
ZHQRWHGWKDWWKH
029
FRPPDQGFDQEHXVHGWRWUDQVIHUGDWDWRDQGIURPPHPRU\
MXVWDV
,1
DQG
287
FDQEHXVHGWRWUDQVIHUGDWDWRDQGIURP,2GHYLFHV)RUWKHSURJUDPPHUXVLQJ
029
WR
DFFHVVPHPRU\LVVLPSOHMXVWHQFORVHDQDGGUHVVLQEUDFNHWV,QQHLWKHU'26QRU/LQX[KRZHYHUDUHWKH
DGGUHVVHVHQFORVHGE\EUDFNHWVDFWXDOPHPRU\DGGUHVVHV,Q'26DQDGGUHVVSURFHVVLQJPHFKDQLVPFDOOHG
VHJPHQWDWLRQLVXVHGDQGLQ/LQX[DQRWKHURQHFDOOHGSDJLQJLVXVHG%XWWKHVHPHFKDQLVPVFDQEH
FLUFXPYHQWHG,QWKLVFKDSWHUZHPDNHWKHVLPSOLI\LQJDVVXPSWLRQWKDWWKLVLVGRQHVRWKDWDGGUHVVHV
HQFORVHGLQEUDFNHWVDUHDFWXDOKDUGZDUHDGGUHVVHV3URJUDPVZULWWHQRQWKLVEDVLVUXQXQGHU(GOLQDV
6HJPHQWDWLRQDQGSDJLQJZLOOEHGHDOWZLWKODWHU6HJPHQWDWLRQLVGLVFXVVHGLQ
FKDSWHU
DQGSDJLQJLV
GLVFXVVHGLQ
FKDSWHU
%\WH'DWD:LGWK
'DWDWUDQVIHUEHWZHHQDSURFHVVRUDQGLWVPHPRU\LVHDV\ZKHQZRUGVL]HDQGUHJLVWHUVL]HDJUHH)RU
H[DPSOHWKHSURFHVVRUIHWFKHVHLJKWELWZRUGVLQWRLWVHLJKWELWUHJLVWHUV(LJKWELWUHJLVWHUVDUHRI
FRXUVHPDLQO\DWKLQJRIWKHSDVW%XWHLJKWELWZRUGVZHVWLOOKDYH,QWHOKDVLPSOHPHQWHGPDQ\PHDVXUHV
VRWKDWLWVQHZSURFHVVRUVZRXOGUXQROGVRIWZDUH2QHRIWKHVHKDVEHHQWKHPDLQWDLQHQFHRIHLJKWELW
ZRUGVGHVSLWHWKHIDFWWKDWERWKSURFHVVRUUHJLVWHUVDQGGDWDWUDQVIHUVORQJDJRRXWJUHZWKHHLJKWELWVL]H
7KHSURFHVVRUIRUH[DPSOHKDVELWUHJLVWHUVDQGELWGDWDWUDQVIHUV
:KHQUHJLVWHUDQGZRUGVL]HVGRQWPDWFKVLPSOHWUDQVIHUFRPPDQGVQRORQJHUPDNHVHQVH)RUH[DPSOH
ZLWKRXWVRPHIXUWKHUSURWRFROVLQSODFHWKHFRPPDQG
029>+@($;
GRHVQRWPDNHVHQVH7KHPHPRU\ORFDWLRQUHIHUUHGWROLNHDOO,QWHOPHPRU\ORFDWLRQVLVDQHLJKWELW
ORFDWLRQ%XW($;RQWKHRWKHUKDQGLVDELWUHJLVWHU
6WRUDJH3URWRFROV
7ZRIXUWKHUSURWRFROVDUHXVHG
z
:KHQDQQE\WHWUDQVIHULVLQGLFDWHGE\DQDGGUHVVDWKHPHPRU\E\WHVUHIHUUHGWRDUHWKRVHDWWKH
DGGUHVVHVDD«DQ$OODUFKLWHFWXUHVGRWKLV
z
:KHQDQQE\WHQXPEHULVVWRUHGLQPHPRU\LWVE\WHVDUHVWRUHGLQRUGHURIVLJQLILFDQFHOHDVW
VLJQLILFDQWE\WHVLQWKHORZHVWDGGUHVVHV1XPHULFDOO\LQFUHDVLQJDGGUHVVHVFRUUHVSRQGWRLQFUHDVLQJ
E\WHVLJQLILFDQFH1RWDOODUFKLWHFWXUHVGRWKLV
7KHVHWZRSURWRFROVPDNHLWSRVVLEOHWRLQWHUSUHWWKH
029>+@($;
FRPPDQG$VVKRZQLQ
)LJXUH
WKHE\WHVLQ($;DUHVWRUHGLQDGGUHVVHV+$+%+DQG&+7KHOHDVWVLJQLILFDQWE\WHLQ($;LV
VWRUHGLQ+WKHQH[WLQ$+DQGVRRQ
3URJUDP
GHPRQVWUDWHVWKHXVHRIWKLVLQVWUXFWLRQ:KHQ
3URJUDP
LV
)LJXUH
029>+@($;
3URJUDP
7LQ\(GOLQDVSURJUDPZKLFKVWRUHVDQLQSXWQXPEHULQWRPHPRU\
,1($;>@
029>+@($;
5(7
UXQXQGHU(GOLQDVLWLVORDGHGVWDUWLQJDWDGGUHVV6LQFHPHPRU\ORFDWLRQVXSWRWKHDGGUHVV+DUHDOO
GLVSOD\HGZKHQWKLVSURJUDPLVORDGHGWKHH[HFXWLRQRIWKH
029
LQVWUXFWLRQLVGLUHFWO\REVHUYDEOH
/LWWOHDQG%LJ(QGLDQ$UFKLWHFWXUH
$UFKLWHFWXUHVZKLFKXVHWKHE\WHRUGHULQJJLYHQLQWKHVHFRQGRIWKHVHSURWRFROVDUHFDOOHGOLWWOHHQGLDQ
$UFKLWHFWXUHVZKLFKGRWKHRSSRVLWHDUHFDOOHGELJHQGLDQ
$OO,QWHOSURFHVVRUVDUHOLWWOHHQGLDQ([DPSOHVRIELJHQGLDQSURFHVVRUVDUH0RWRURODVDQG
SURFHVVRUV0,36DQG3RZHU3&SURFHVVRUVFDQZRUNLQHLWKHUPRGH
,QRUGHUWRHQFRXUDJHVRIWZDUHGHYHORSHUVWRPLJUDWHDZD\IURPFRPSHWLQJKDUGZDUHDFRPPRQVWUDWHJHP
LVWRLQFRUSRUDWHFRPSDWLELOLW\IHDWXUHV$FRPSDWLELOLW\IHDWXUHDGGHGWRWKHSURFHVVRULVWKH
%6:$3
LQVWUXFWLRQ,WUHYHUVHVWKHE\WHRUGHULQJRIDQ\ELWJHQHUDOUHJLVWHU,WVIRUPDWLVVLPSO\
%6:$3UHJ
)RUH[DPSOHLIWKH($;UHJLVWHUFRQWDLQHGWKHQXPEHU+WKHQIROORZLQJWKHH[HFXWLRQRIWKH
%6:$3($;
FRPPDQGLWZRXOGFRQWDLQWKHQXPEHU+
$OLJQPHQW
7KHGLVFUHSDQF\EHWZHHQWKHIRXUE\WHGDWDWUDQVIHUVL]HDQGWKHRQHE\WHZRUGVL]HZKLFKH[LVWVLQDQG
V\VWHPVLVQRWIXOO\UHIOHFWHGLQWKHKDUGZDUH,QIDFWWKHRQHE\WHZRUGVL]HLVDNLQGRIILFWLRQ
PDLQWDLQHGIRUWKHEHQHILWRIWKHVRIWZDUH$OWKRXJKPHPRU\RQWKHVHV\VWHPVLVIRUFHGWRHPXODWHDRQH
E\WHZRUGPHPRU\ZRUGVDUHDFWXDOO\IRXUE\WHVZLGH7KHWZRORZHVWELWVRIWKHELWDGGUHVVEXVDUHLQ
IDFWQRWWKHUH7KHZLUHVRQWKHDGGUHVVEXVDUH$WKURXJK$$DQG$DUHPLVVLQJ)URPDKDUGZDUH
SRLQWRIYLHZDDGGUHVVHV
ELWZRUGV7KH
îELWPHPRU\LVDILFWLRQ%XWEHFDXVHWKHILFWLRQ
LVFRQVLVWHQWO\PDLQWDLQHGVRIWZDUHZKLFKEHOLHYHVWKLVILFWLRQGRHVZRUN%XWLWGRHVQWZRUNDVZHOODV
VRIWZDUHZKLFKWDNHVWKHWUXHVWDWHRIDIIDLUVLQWRDFFRXQW)RUH[DPSOHWKHFRPPDQG
029($;>+@
DFFHVVHVIRXUE\WHVRIPHPRU\ZKRVHELWDGGUHVVHVDUH
1RWHWKDWWKHVHDGGUHVVHVGLIIHURQO\LQWKHQRQH[LVWHQWERWWRPWZRELWV7KHVHIRXUE\WHVDUHDFWXDOO\MXVW
RQHIRXUE\WHZRUG7KHFRPPDQGFDQEHDFFRPSOLVKHGZLWKDVLQJOHPHPRU\WUDQVIHU2QWKHRWKHUKDQG
WKHFRPPDQG
029($;>+@
ZKLFKDOVRDFFHVVHVIRXUE\WHVRIPHPRU\FDQQRWEHFDUULHGRXWLQWKHVDPHZD\7KHELWDGGUHVVHVRI
WKHVHIRXUE\WHVDUH
7RDFFHVVWKHVHIRXUE\WHVWZRGLVWLQFWPHPRU\WUDQVIHUVDUHUHTXLUHG,QFRGHZKLFKLVDFFHVVLQJDODUJH
QXPEHURIFRQVHFXWLYHPHPRU\ORFDWLRQVIRXUE\WHVDWDWLPHSHUIRUPDQFHZLOOEHFXWLQKDOILIWKH
DGGUHVVHVFDOOHGDUHQRWWKRVHZKRVHERWWRPWZRELWVDUH]HURLHDPXOWLSOHRIIRXU0HPRU\WUDQVIHUV
ZKLFKVWUDGGOHIRXUE\WHZRUGERXQGDULHVDUHVDLGWREHRXWRIDOLJQPHQW6WDUWLQJZLWKWKHSURFHVVRUD
IODJZDVDGGHGZKLFKGHWHFWVPHPRU\WUDQVIHUVWKDWDUHRXWRIDOLJQPHQW
$GGUHVVHVLQ%UDFNHWV
7KHXVHRI
029
WRDFFHVVPHPRU\MXVWVFUDWFKHVWKHVXUIDFHRIDYDLODEOHPHPRU\FRPPDQGV$OORIWKH
HQWULHVLQ7DEOHFRQWDLQLQJRSHUDQGNH\VWKDWFRQWDLQDQPGHVFULEHFRPPDQGVWKDWDFFHVVPHPRU\
)URPWKHWDEOHZHFDQVHHWKDW
029$''25$'&6%%$1'68%
DQG
;25
DOODOORZPHPRU\
RSHUDQGVLQHLWKHUWKHVRXUFHRUWKHGHVWLQDWLRQRSHUDQGSRVLWLRQ0HPRU\RSHUDQGVPD\EHVXSSOLHGXVLQJ
VHYHUDOGLIIHUHQWIRUPDWV
7KH>LPP@)RUPDW
$OOWKHPHPRU\RSHUDQGH[DPSOHVSUHVHQWHGVRIDUKDYHXVHGWKH>LPP@IRUPDWZLWKWKH
029
LQVWUXFWLRQ
,OOXVWUDWLQJWKH>LPP@IRUPDWZLWKWKH
$''
FRPPDQGZHKDYHERWK
$''UHJ>LPP@
DQG
$''>LPP@UHJ
ZKHUHLPPFDQEHDQ\IRXUE\WHQXPEHU
$VZHDOONQRZPHPRU\PD\EHXVHGIRUVWRUDJHRIPDQ\NLQGVRIGDWDLQFOXGLQJWH[WJUDSKLFVDQG
QXPEHUV,QWKHIROORZLQJSDUDJUDSKVZHORRNDWKRZLWLVXVHGLQFRQQHFWLRQZLWKQXPEHUVLQSDUWLFXODU
ZLWKELJQXPEHUV
%LW$ULWKPHWLF
0HPRU\VSDFHLVPXFKODUJHUWKDQSURFHVVRUVSDFH:KHQQXPEHUVEHFRPHWRRODUJHIRUWKHSURFHVVRUWR
ZRUNZLWKWKHDULWKPHWLFFDQEHGRQHSLHFHPHDOZLWKSLHFHVVPDOOHQRXJKIRUWKHSURFHVVRUWRKDQGOH
ORDGHGLQIURPPHPRU\DVWKH\DUHQHHGHG6RPHIHDWXUHVRIWKHSURFHVVRUDUHGHVLJQHGZLWKWKLVNLQGRI
DULWKPHWLFLQPLQG7KH
$'&
LQVWUXFWLRQLVDFDVHLQSRLQW7KLVLQVWUXFWLRQPDNHVLWSRVVLEOHWRGRSLHFHPHDO
DGGLWLRQRIODUJHQXPEHUV6XSSRVHWKDWZHKDYHWKHQXPEHUV+DQG
$$$$%%%%&&&&''''+VWRUHGDWORFDWLRQV+DQG+LQPHPRU\DQGWKDWZHZDQWWRDGGWKHP
8VLQJWKH
$''
LQVWUXFWLRQRQWKHERWWRPIRXUE\WHVRIWKHVHQXPEHUVZLOOVHWWKHFDUU\IODJ8VLQJWKH
$'&
LQVWUXFWLRQRQWKHQH[WIRXUE\WHVWDNHVDFFRXQWRIWKHFDUU\7KH
$'&
LQVWUXFWLRQLVYHU\VLPLODUWRWKH
$''
LQVWUXFWLRQ,WPHDQV
ZKHUHDVWKHRUGLQDU\
$''
LQVWUXFWLRQPHDQV
7KHDGGLWLRQFDQWKHQEHFDUULHGRXWLQWZRVWDJHVWKHILUVWRQHXVLQJ
$''
DQGWKHQH[WRQHXVLQJ
$'&
,QRUGHUIRUWKHFDUU\LQJWRZRUNLWLVLPSRUWDQWWKDWQRWKLQJGLVWXUEWKHFDUU\IODJEHWZHHQWKHORZRUGHU
DGGLWLRQDQGWKHKLJKRUGHUDGGLWLRQ7KHIROORZLQJFRGHGRHVWKLVDULWKPHWLFXVLQJWKHHLJKWE\WHVVWDUWLQJDW
+DVWKHGHVWLQDWLRQDQGWKHHLJKWE\WHVVWDUWLQJDW+DVWKHVRXUFH:KHQWKLVSURJUDPILQLVKHVWKH
3URJUDP
E\WH'HVWLQDWLRQDW+
E\WH6RXUFHDW+
029($;>+@%RWWRP6RXUFHE\WHV
$''>+@($;$GGWRERWWRP'HVWLQDWLRQE\WHV
029($;>&+@7RS6RXUFHE\WHV
$'&>+@($;$GGWRWRS'HVWLQDWLRQE\WHV
HLJKWE\WHVXPLVORFDWHGLQWKHHLJKWE\WHVVWDUWLQJDWWKHDGGUHVV+:KHQWKH
$'&
LQVWUXFWLRQILQLVKHV
WKHRYHUIORZFDUU\DQGVLJQIODJVZLOOEHFRUUHFWIRUHLJKWE\WHDULWKPHWLF7KH]HURIODJGRHVQRWZRUNVR
ZHOOIRUHLJKWE\WHV:KHQVHWLWQHHGQRWLQGLFDWHWKDWWKHHLJKWE\WHVXPLV
3RZHUVRI
([SDQGLQJRQWKLVLGHDZHFDQFRGHDOLWWOHELWSRZHURIFDOFXODWRUXVLQJWKHIROORZLQJDOJRULWKP
,QLWLDOL]H\
7KHQUHSHDW
3URJUDP
KDVQRLQSXWRURXWSXW,WFDQEHREVHUYHGE\VWHSSLQJWKURXJKLWLQ(GOLQDV7KH>LPP@IRUPDW
LVXVHIXOLQUHIHUULQJWRDIHZIL[HGORFDWLRQVLQPHPRU\,WLVQRWXVHIXOLQSURFHVVLQJDORQJVXFFHVVLRQRI
E\WHVLQPHPRU\
3URJUDP
(GOLQDVSURJUDPZKLFKILQGVELWSRZHUVRI
6WRUHWKHE\WHVRI[VWDUWLQJDWPHPRU\DGGUHVV+
6WRUHWKHOHDVWVLJQLILFDQWE\WHVRI\LQ($;
6WRUHWKHPRVWVLJQLILFDQWE\WHVRI\LQ(%;
\
029($;
029(%;
029(';
[ \
$%&029>+@($;
029>+@(%;
\ \[
$''($;>+@
$'&(%;>+@
\ \[
$''($;>+@
$'&(%;>+@
,1&(';.HHSWUDFNRIWKHH[SRQHQW
-03$%&
7KH>UHJ@)RUPDW
/RQJVXFFHVVLRQVRIE\WHVRFFXULQERWKDUUD\VDQGLQYHU\ODUJHQXPEHUV7KH>UHJ@IRUPDWLVPXFKEHWWHU
VXLWHGWRGHDOZLWKWKHVHVLWXDWLRQVWKDQLVWKH>LPP@IRUPDW8VLQJ
029
WRLOOXVWUDWHWKH>UHJ@IRUPDWZHKDYH
ERWK
029UHJ>UHJ@
DQG
029>UHJ@UHJ
,QWKHILUVWRIWKHVHWKH>UHJ@VRXUFHRSHUDQGUHIHUVWRWKHORFDWLRQLQPHPRU\ZKRVHDGGUHVVLVLQWKH
UHJLVWHUZKRVHQDPHLVLQEUDFNHWV)RUH[DPSOHWKHFRGH
029(%;+
029($;>(%;@
WUDQVIHUVIRXUE\WHVLQWRWKH($;UHJLVWHUIURPPHPRU\VWDUWLQJDWDGGUHVV+
$VDQH[DPSOHRIWKHXVHIXOQHVVRIWKH>UHJ@IRUPDWVXSSRVHZHFRQVLGHUWKHSUREOHPRIDGGLQJWZR
E\WHQXPEHUV
,Q
3URJUDP
WKHDGGUHVVHVZHUHDFFHVVHGGLUHFWO\XVLQJWKH>LPP@IRUPDW(DFKIRXUE\WHVRIWKHDGGLWLRQ
ZHUHGRQHXVLQJWZRLQVWUXFWLRQVD
029
DQGDQ
$'&
8VLQJWKDWVDPHWHFKQLTXHKHUHWRGRDGGE\WH
QXPEHUVZRXOGUHTXLUHPXOWLSO\LQJWKHQXPEHURILQVWUXFWLRQVQHHGHGE\&RQVHTXHQWO\ZHZRXOGQHHG
OLQHVRIFRGH,IZHXVHWKH>UHJ@IRUPDWRQWKHRWKHUKDQGZHPD\XVHDUHJLVWHUIRUWKHVRXUFHDQG
GHVWLQDWLRQDGGUHVVHVDQGLQFUHPHQWWKHPLQDORRS,IZHXVH(',IRUWKHGHVWLQDWLRQLQGH[DQG(6,IRUWKH
VRXUFHLQGH[WKHQZHEHJLQE\VWRULQJ+LQ(',DQG+LQ(6,:HPXVWWKHQLQFUHDVHWKHVHSRLQWHUV
IRXUE\WHVDWDWLPHDVZHWUDYHUVHWKHWZRELJQXPEHUV7KLVFRGHLVPXFKVKRUWHUWKDQWKH
3URJUDP
&RGHZKLFKDGGVWZRE\WHQXPEHUV\DQG[
\ \[
$VVXPHWKHE\WHVRI\DUHVWRUHGVWDUWLQJDWPHPRU\DGGUHVV+
$VVXPHWKHE\WHVRI[DUHVWRUHGVWDUWLQJDWPHPRU\DGGUHVV+
8VH(';WRVWRUHDGHFUHPHQWFRXQWHUIRUWKH\ \[ORRS
029(',+,QLWLDOL]HSRLQWHULQWR\
029(6,+,QLWLDOL]HSRLQWHULQWR[
\ \[
029(';+/RRSQHHGVLWHUDWLRQV
&/&&OHDUWKHFDUU\IODJ
;<=029($;>(6,@6RXUFHE\WHVLQWRWKH3URFHVVRU
$'&>(',@($;'RWKHDGGLWLRQ
,1&(6,
,1&(6,
,1&(6,7KLVLVXJO\
,1&(6,
,1&(',%XWXVLQJ$''KHUHZRXOG
,1&(',FOHDUWKHFDUU\IODJ
,1&(',
,1&(',
'(&(';'HFUHPHQWWKHORRSFRXQWHU
-1=;<=6HHLIWKHORRSLVILQLVKHG
OLQHVZKLFKZRXOGKDYHUHVXOWHGIURPXVLQJWKH>LPP@IRUPDW
$WILUVWVLJKWLWZRXOGDSSHDUWKDWZHFRXOGGREHWWHUE\XVLQJ
$''
LQVWUXFWLRQVLQSODFHRIPXOWLSOH
,1&
LQVWUXFWLRQV%XWWKLVZRXOGDFWXDOO\UXLQHYHU\WKLQJ%HFDXVHZHDUHXVLQJDORRSWRSURFHHGIRXUE\WHVDWD
WLPHIURPWKHOHDVWVLJQLILFDQWWRWKHPRVWVLJQLILFDQWE\WHVZHHQFRXQWHUDSUREOHPZLWKWKHFDUU\IODJ,ILQ
EHWZHHQWZRH[HFXWLRQVRIWKH
$'&
LQVWUXFWLRQZHPRYHIRXUE\WHVGRZQWKHQXPEHUXVLQJDQ
$''
LQVWUXFWLRQZHKDYHPHVVHGXSWKHFDUU\IODJ,Q
FKDSWHU
LWLVQRWHGWKDWWKHFDUU\IODJLVXQDIIHFWHGE\WKH
,1&
DQG
'(&
LQVWUXFWLRQV7KHUHDVRQIRUWKLVDUFDQHOLWWOHH[FHSWLRQVXGGHQO\EHFRPHVFOHDU0XOWLE\WH
DULWKPHWLFQHHGVDFDUU\IODJZKLFKFDQVXUYLYHORRSFRXQWHUDGMXVWPHQWV%HFDXVHWKH\GRQWDIIHFWWKHFDUU\
IODJWKH
,1&
DQG
'(&
LQVWUXFWLRQVFDQEHXVHGWRFDUU\RXWKDUPOHVVORRSFRXQWHUDGMXVWPHQWV$GGLQJE\
XVLQJIRXU
,1&
LQVWUXFWLRQVLVQRWEHDXWLIXOEXWLWZRUNV
7KLVFRGHLVQRWEDGIURPWKHVWDQGSRLQWRIWDNLQJXSPHPRU\VSDFHVLQFHPHPRU\LVFKHDS%XWLWLVEDG
IURPWKHVWDQGSRLQWRIDGGLQJH[HFXWLRQWLPHWRDORRS,IWKHUHLVRQHSODFHZKHUHH[HFXWLRQWLPHLVFRVWO\LW
LVLQWKHPLGGOHRIDQHVWHGORRSDQGWKDWLVH[DFWO\ZKHUHWKRVHH[WUD
,1&
LQVWUXFWLRQVDUH
$QRWKHUPHPRU\IRUPDWLVXVHIXOLQGHDOLQJZLWKWKLVSUREOHP
7KH>UHJVFDOHUHJLPP@)RUPDW
7KHPRVWJHQHUDOPHPRU\IRUPDWLVWKH>UHJVFDOHUHJLPP@IRUPDWZKHUHVFDOHLVDVFDOHIDFWRUZKLFK
PXVWEHHLWKHURU7KHUHJLVWHUZKLFKLVPXOWLSOLHGE\WKHVFDOHIDFWRULVFDOOHGWKHLQGH[UHJLVWHU
7KHRWKHUUHJLVWHULVFDOOHGWKHEDVHUHJLVWHU6RPHILHOGVPD\EHRPLWWHG7KLVJLYHVXVWKHHIIHFWRID
YDULHW\RIIRUPDWVLQFOXGLQJ
LQDGGLWLRQWRWKH>UHJ@DQG>LPP@IRUPDWVDOUHDG\GLVFXVVHG,WLVDOLWWOHKDUGWREHOLHYHWKDWLQVWUXFWLRQV
ZLWKWKLVGHJUHHRIFRPSOH[LW\DUHKDUGFRGHGLQWRWKHSURFHVVRUV%XWWKHFRVWLQWHUPVRILQVWUXFWLRQOHQJWK
IRUDOOWKLVFRPSOH[LW\LVDFWXDOO\MXVWRQHPRUHE\WHRIFRGHIRULQVWUXFWLRQVZKLFKXWLOL]HWKLVJHQHUDO
IRUPDW7KHE\WHLVFDOOHGWKH6,%E\WHERWKIRUVFDOHGLQGH[EDVHE\WHDQGVLEOLQJRIWKH0RG50E\WH
7DNLQJXSWKHSUREOHPRIWKHUHSHDWHG
,1&
LQVWUXFWLRQLQ
3URJUDP
QRWHWKDWDVFDOHIDFWRURIZRXOG
LQFUHDVHWKHDGGUHVVE\ZKHQHYHUWKHLQGH[UHJLVWHUZDVLQFUHPHQWHGE\,QWKHFRGHVKRZQLQ
3URJUDP
WKH>VFDOHUHJLPP@IRUPDWLVXVHGWRUHIHUWRERWKVRXUFHDQGGHVWLQDWLRQPHPRU\ORFDWLRQV,QWKLV
FRGHZHVHHWKDWDVLQJOH
,1&
LQVWUXFWLRQWDNHVWKHSODFHRIHLJKW
,1&
LQVWUXFWLRQVLQ
3URJUDP
3URJUDP
(GOLQDVSURJUDPZKLFKILQGVE\WHSRZHUVRI
6WRUHWKHE\WHVRI[VWDUWLQJDWPHPRU\DGGUHVV+
6WRUHWKHE\WHVRI\VWDUWLQJDWPHPRU\DGGUHVV+
029(%;,QLWLDOL]HEDVH
029(';,QLWLDOL]HH[SRQHQW
\
029($;'RWKHDGGLQJLQ($;
029(',+/RRSQHHGVLWHUDWLRQV
=52'(&(',
029>(',+@($;
-1==52
029>(',+@(%;
[ \0DLQLQILQLWHORRSVWDUWVKHUH
/83029(',+/RRSQHHGVLWHUDWLRQV
029(6,(%;,QLWLDOL]HPDLQORRSFRXQWHU
%(*'(&(',
029($;>(',+@
029>(',+@($;
-1=%(*
\ \[
$*1029(&;+/RRSQHHGVLWHUDWLRQV
;<=029($;>(',+@
$'&($;>(',+@
029>(',+@($;
,1&(',
'(&(&;
-1=;<=
'(&(6,
-1=$*1
,1&(';
-03/83
2QHYDULDWLRQZKLFKLVQRWSHUPLWWHGLVWKHXVHRIPHPRU\UHIHUHQFHVLQERWKRSHUDQGSRVLWLRQV7KHUHDUH
QR[SURFHVVRULQVWUXFWLRQVZKLFKXVHPHPRU\DVERWKVRXUFHDQGGHVWLQDWLRQRSHUDQGV7KHLQVWUXFWLRQ
$''>($;@>(%;@
IRUH[DPSOHGRHVQRWH[LVW7KHUHDUHKRZHYHULQVWUXFWLRQVZKLFKLQYROYHERWKUHDGLQJIURPDQGZULWLQJWR
PHPRU\
,1&
>($;@IRUH[DPSOHERWKUHDGVIURPDQGZULWHVWRWKHPHPRU\ORFDWLRQZKRVHDGGUHVVLVLQ
($;$UFKLWHFWXUHVFDOOHGORDGVWRUHDUFKLWHFWXUHVGRQRWDOORZPL[LQJSURFHVVRURSHUDWLRQVZLWKPHPRU\
RSHUDWLRQV7KHRQO\FRPPDQGVLQDORDGVWRUHDUFKLWHFWXUHZKLFKDFFHVVPHPRU\DUHORDGDQGVWRUH
%LW$GGUHVVHV
,Q
VHFWLRQ
WKH>UHJ@IRUPDWIRUPHPRU\DGGUHVVLQJZDVSUHVHQWHGZKHUHUHJFRXOGEHDQ\RIWKHHLJKW
ELWJHQHUDOUHJLVWHUV7KHDQGDOVRXVHD>UHJ@IRUPDW1RWDOOHLJKWELWUHJLVWHUVDUH
SHUPLWWHGKRZHYHURQO\%3%;6,DQG',7KHUHLVDOVRD>UHJUHJLPP@IRUPLPPPXVWEHDELW
QXPEHU,IWZRUHJLVWHUVDUHXVHGWKHRQO\DOORZHGFRPELQDWLRQVDUH%36,%3',%;6,DQG%;
',6LQFHWKHVHUHVWULFWLRQVDUHHDV\WRIRUJHWSURJUDPPHUVQRWDFFXVWRPHGWRELWDGGUHVVHVPD\ILQG
WKHPVHOYHVXVLQJGLVDOORZHGIRUPVRIDGGUHVV0RVWSURJUDPPHUVZLOOSUHIHUWRDYRLGELWDGGUHVVLQJ
ZKHQHYHUSRVVLEOH
7KHVHELWIRUPVRIPHPRU\DGGUHVVFDQEHXVHGRQDQ:KHQWKH\RFFXULQELWFRGHDVSHFLDO
SUHIL[+KDVWREHDSSOLHGWRWKHPDFKLQHFRGHWRQRWLI\WKHSURFHVVRUWKDWWKHPHPRU\DGGUHVVELWVLQ
WKH0RG50E\WHDUHFRGHGXVLQJWKHROGELWFRGLQJV\VWHP7KLVSUHIL[LVFDOOHGWKHDGGUHVVVL]HSUHIL[
,WLVVLPLODUWRWKHRSHUDQGVL]HSUHIL[GLVFXVVHGLQ
FKDSWHU
VHFWLRQ
&,6&YV5,6&
$Q[FRPSXWHULVJHQHUDOO\FRQVLGHUHGWREHDFRPSOH[LQVWUXFWLRQVHWFRPSXWHU&,6&7KLVLVSDUWO\
EHFDXVHRIFRPSOLFDWHGDGGUHVVLQJDVLQWKH
>(';(6,$%&@
PHPRU\RSHUDQG0DFKLQHVVXFKDVWKH
681DQG0,36ZRUNVWDWLRQVDUHEDVHGRQWKHLGHDWKDWE\VLPSOLI\LQJWKHLQVWUXFWLRQVDQGKDYLQJIHZHURI
WKHPWKH\EHFRPHHDVLHUDQGIDVWHUWRH[HFXWH7KLVFDQPRUHWKDQPDNHXSIRUWKHIDFWWKDWLWWDNHVPRUHRI
WKHVHOLWWOHLQVWUXFWLRQVWRZULWHDSURJUDP&RPSXWLQJEDVHGRQWKLVSKLORVRSK\LVFDOOHG5,6&UHGXFHG
LQVWUXFWLRQVHWFRPSXWLQJ7KH5,6&YV&,6&LVVXHLVQRWDQHLWKHU±RULVVXHOLNHOLWWOHHQGLDQYVELJHQGLDQ
5,6&LVDVHWRIIHDWXUHVZKLFKPD\EHDGRSWHGSDUWLDOO\LQYDU\LQJGHJUHHV2QHUHDVRQWKDWWKHDQG
3HQWLXPSURFHVVRUVZHUHDEOHWRFRPSHWHZLWKWKHHDUO\5,6&3RZHU3&SURFHVVRUVLVWKDWWKH\DGRSWHGD
SLHFHPHDO5,6&SKLORVRSK\$OWKRXJK&,6&LQVWUXFWLRQVDUHDOORZHGRQD3HQWLXPLWZRUNVIDVWHULI
SURJUDPPHGXVLQJD5,6&OLNHVXEVHWRIWKHWRWDOLQVWUXFWLRQVHW
7KHLUQDPHVQRWZLWKVWDQGLQJWKH3HQWLXP,,DQG3HQWLXP3URKDYHJRQHRYHUWRDWRWDOO\5,6&DUFKLWHFWXUH
7KHLQVWUXFWLRQVHWXVHGLQWHUQDOO\LVDSXUH5,6&LQVWUXFWLRQVHW7UDGLWLRQDO[LQVWUXFWLRQVDUHFRQYHUWHG
LQWHUQDOO\WR5,6&LQVWUXFWLRQVEHIRUHWKH\DUHH[HFXWHG,QDVHQVHWKHHQGRIWKHOLQHWDJKXQJRQWKH
3HQWLXPE\$SSOHPDUNHWHUVZDVFRUUHFW%XWLURQLFDOO\DVVHPEO\ODQJXDJHLVQRZVWURQJHUWKDQHYHU
2SHUDQG6L]H$PELJXLW\
,QPRVWWZRRSHUDQGLQVWUXFWLRQVERWKRSHUDQGVPXVWKDYHWKHVDPHVL]H6RZKHQDPHPRU\RSHUDQGLV
XVHGLQVXFKDFRQWH[WWKHQXPEHURIE\WHVLWUHIHUVWRFDQEHGHWHUPLQHGLIWKHRWKHURSHUDQGLVDUHJLVWHU
RSHUDQG)RUH[DPSOHLQ
$''>(%;@$;
WKHPHPRU\RSHUDQG>(%;@PXVWUHIHUWRWZRE\WHVRIPHPRU\
VLQFH$;LVDWZRE\WHUHJLVWHU+RZHYHUZKHQDPHPRU\RSHUDQGLVXVHGZLWKDQLPPHGLDWHRSHUDQGWKH
UHVXOWLVDPELJXRXV)RUH[DPSOHWKHIROORZLQJFRPPDQGLVDPELJXRXV
029>(%;@
6LPLODUO\ZKHQDPHPRU\RSHUDQGLVXVHGZLWKDXQDU\RSHUDWLRQVXFKDV
1(*
ZKLFKWDNHVWKHWZRV
FRPSOHPHQWRIDQXPEHUWKHRSHUDQGVL]HLVLQGHWHUPLQDWH$QLQVWUXFWLRQVXFKDV
1(*>(%;@
PLJKWZHOOUHIHUWRRQHWZRRUIRXUE\WHVRIPHPRU\8QGHUWKHVHFLUFXPVWDQFHVDQDVVHPEOHUKDVWRPDNH
DFKRLFH1$60FKRRVHVWRSURGXFHDQHUURUPHVVDJH,QELWFRGH(GOLQDVGHIDXOWVWRDIRXUE\WH
UHIHUHQFHZKHQWKHUHIHUHQFHLVDPELJXRXV,QELWFRGHWKHGHIDXOWLVWZRE\WH7RLQGLFDWHWKHRQHE\WH
FDVHLQ(GOLQDV\RXPD\XVHWKHFXVWRPDU\EXWFOXPV\QRWDWLRQ
1(*%<7(375>(%;@
,Q1$60WKHFRGHLV
1(*%<7(>(%;@
7RLQGLFDWHDIRXUE\WHUHIHUHQFHLQ1$60WKHFRGHLV
1(*':25'>(%;@
$WZRE\WHUHIHUHQFHLVLQGLFDWHGXVLQJ
:25'
DVDTXDOLILHU7KHVHTXDOLILHUVFOHDUO\GRWKHMRE7KHLPSOLHG
FRQFHVVLRQWKDWDZRUGLVELWVLVXQIRUWXQDWH,QOLJKWRIQRWDWLRQVXFKDV
%<7(375
WKH$77SUDFWLFH
RIDGGLQJDOHWWHUWRWKHPQHPRQLFGRHVQWVHHPVREDG,QIDFWWKH,QWHODVVHPEOHUGRHVXVHPQHPRQLFVRI
WKLVVRUWLQDIHZFDVHVVXFKDV
/2'6%
DQG
6726%
ORDGVWULQJE\WHDQGVWRUHVWULQJE\WH
/DEHOV
,QSURJUDPPLQJMXPSVODEHOVDUHXVHGDVDFRQYHQLHQFH8VLQJDODEHOZLWKDMXPSLQVWUXFWLRQPDNHVLW
XQQHFHVVDU\WRFRXQWWKHQXPEHURIE\WHVXSVWUHDPRUGRZQVWUHDPWRWKHMXPSWDUJHW&RXQWLQJWKHVHE\WHV
UHTXLUHVDVVHPEOLQJWKHLQWHUYHQLQJFRGHDQGKDVWREHGRQHRYHUDJDLQDQ\WLPHWKHLQWHUYHQLQJFRGHLV
FKDQJHG6RODEHOVDUHDJUHDWFRQYHQLHQFH%XWVWLOOWKH\DUHRQO\DFRQYHQLHQFH
/DEHOVPD\DOVREHXVHGLQDFFHVVLQJPHPRU\VWRUDJHORFDWLRQV,Q
3URJUDP
ZHVHH
$%&
XVHGDVWKHODEHO
IRUDORFDWLRQZKHUHDQLQSXWE\WHLVVWRUHG,QWKH
3URJUDP
7LQ\(GOLQDVSURJUDPZKLFKXVHVDODEHOWRUHIHUHQFHDGDWDVWRUDJHORFDWLRQ
,1$/>@(
029>$%&@$/
5(7&
$%&123
PDFKLQHFRGHIRUWKH
029>$%&@$/
LQVWUXFWLRQWKHODEHO
$%&
LVUHSODFHGE\DQXPEHU%DVHGRQWKH
HQFRGLQJRIMXPSLQVWUXFWLRQVGLVFXVVHGLQ
FKDSWHU
ZHVKRXOGH[SHFWWRVHH
$%&
UHSODFHGE\WKHQXPEHU
VLQFHWKHODEHO
$%&
RFFXUVRQHE\WHSDVWWKHEHJLQQLQJRIWKHQH[WLQVWUXFWLRQ%DVHGRQWKH
029
LQVWUXFWLRQV
LQ
VHFWLRQ
ZHVKRXOGH[SHFWWRVHH
$%&
UHSODFHGE\WKHDGGUHVVRIWKHLQVWUXFWLRQRQZKLFKWKHODEHO
$%&
RFFXUVLQWKLVFDVHLIZHDVVXPHWKDWLWLVORDGHGVWDUWLQJDWDVLWZRXOGEHE\(GOLQDV
$GGUHVV(QFRGLQJ
7KHUHDUHWZRFRPPRQPHWKRGVIRUHQFRGLQJWKHDGGUHVVRIVRPHWDUJHWHGPHPRU\ORFDWLRQ
z
5HODWLYH(QFRGLQJ7KHQXPHULFDOGLIIHUHQFHEHWZHHQWKHDGGUHVVRIWKHWDUJHWHGORFDWLRQDQGWKH
DGGUHVVRIWKHIROORZLQJLQVWUXFWLRQLVXVHGLQWKHPDFKLQHFRGH
z
$EVROXWH(QFRGLQJ7KHWDUJHWDGGUHVVLWVHOILVXVHGLQWKHPDFKLQHFRGH
$OOWKHMXPSLQVWUXFWLRQVGLVFXVVHGLQ
FKDSWHU
XVHUHODWLYHHQFRGLQJ$EVROXWHHQFRGLQJLVXVHGIRUMXPS
LQVWUXFWLRQVXVHGLQFRGHDQGDOVRLQVRFDOOHGIDUMXPSVLQ[PDFKLQHFRGH7KHH[LVWHQFHRIVRPH
DEVROXWHHQFRGLQJLVDOPRVWXQDYRLGDEOH7KHRQO\DOWHUQDWLYHZRXOGEHWRGHVLJQWKHSURFHVVRUWRWDNHRYHU
WKHMRERIPHPRU\DOORFDWLRQ
$OOPHPRU\DFFHVVLQJLQVWUXFWLRQVLQ[PDFKLQHFRGH
029$''
HWFXVHDEVROXWHHQFRGLQJ
3URJUDP/RDGLQJ
'RUPDQWSURJUDPVXVXDOO\UHVLGHRQWKHKDUGGLVNRUVRPHRWKHUVHFRQGDU\VWRUDJHGHYLFH7RH[HFXWHWKH\
QHHGWREHLQPHPRU\7RJHWDSURJUDPWRH[HFXWHWKHXVHUSDVVHVLWVILOHQDPHWRWKHRSHUDWLQJV\VWHPE\
W\SLQJLWRQWKHFRPPDQGOLQHIRUH[DPSOHWRH[HFYHLQWKHFDVHRI/LQX[H[HFYHQRWWKHXVHURUWKH
SURJUDPPHUGHFLGHVZKHUHLQPHPRU\WKHSURJUDPZLOOEHORDGHG6LQFHSURJUDPPHUVKDYHQRFRQWURORYHU
WKHORFDWLRQRIWKHLUSURJUDPVLQPHPRU\LWPDNHVXVLQJLQVWUXFWLRQVWKDWXVHDEVROXWHPHPRU\HQFRGLQJ
SUREOHPDWLFZKHQODEHOVDUHXVHGWRUHIHUWRPHPRU\,QIDFWLWPDNHVDVVHPEOLQJSURJUDPVXVLQJPHPRU\
ODEHOVLQWRSODLQXQDLGHGPDFKLQHFRGHLPSRVVLEOH([HFXWDEOHFRGHUHVXOWLQJIURPSURJUDPVXVLQJPHPRU\
ODEHOVPXVWEHDFFRPSDQLHGE\WDEOHVLGHQWLI\LQJDOOWKHSRLQWVLQWKHFRGHZKHUHDQDEVROXWHDGGUHVV
RFFXUV7KHVHWDEOHVDUHFDOOHGUHORFDWLRQWDEOHV$OOREMHFWFRGHILOHV
R
ILOHVLQ/LQX[FRQWDLQUHORFDWLRQ
WDEOHV:KHQDSURJUDPLVORDGHGLQWRPHPRU\WKHVHWDEOHVDUHXVHGWRIL[HDFKDEVROXWHDGGUHVVLQWKH
PDFKLQHFRGHVRWKDWLWSRLQWVWRWKHDGGUHVVZKLFKLVYDOLGJLYHQZKHUHWKHSURJUDPLVDFWXDOO\ORDGHG
7KH(GOLQDVVLPXODWRUORDGVDOOSURJUDPVVWDUWLQJDWWKHDGGUHVV]HUR:HFDQFRXQWWKHE\WHVLQ
3URJUDP
IURPWKHUHWRWKHOLQHZLWK
$%&
RQLW,IZHGRZHILQGWKDWWKH
123
LQVWUXFWLRQRFFXUVDWDGGUHVV7KDWLV
ZK\WKHPDFKLQHFRGHJLYHQIRUWKH
029>$%&@$/
LQVWUXFWLRQLQ
3URJUDP
VKRZVWKHODEHO
$%&
HQFRGHG
DV7KHLQVWUXFWLRQ
029>@$/
FRXOGWKHUHIRUHEHXVHGLQSODFHRI
029>$%&@$/
,IWKLVSURJUDP
ZHUHWREHUHORFDWHGVRWKDWLWVWDUWHGDWWKHDGGUHVV+WKHQWKHFRGHIRUWKH
$%&
ODEHOLQWKH
029
LQVWUXFWLRQZRXOGQHHGWREH+LQVWHDGRI
9DULDEOHV
,QKLJKOHYHOSURJUDPPLQJODQJXDJHVYDULDEOHVDUHRIWHQLPSOHPHQWHGDVODEHOOHGPHPRU\ORFDWLRQV
$OWKRXJKDFRPSLOHUPD\XVHDUHJLVWHUDPRUHW\SLFDOLPSOHPHQWDWLRQRIDYDULDEOHLVDVDODEHOOHGPHPRU\
ORFDWLRQ7KLVLVWUXHSDUWLFXODUO\IRUJOREDOYDULDEOHV
$UUD\V
$VDQH[DPSOHRIKRZWKHVHDGGUHVVLQJPRGHVPLJKWEHXVHGWRKDQGOHDUUD\SURJUDPPLQJFRQVLGHUWKH
IROORZLQJ&FRGHZKLFKFRXQWVKRZPDQ\]HURVDQGRQHVWKHUHDUHLQWKHSDUWRIDQDUUD\[>@>@ZKHUH
WKHURZVRILQWHUHVWDUHIURPWKURXJKDQGWKHFROXPQVDUHIURPWKURXJK7RFRGHWKLVLQ
DVVHPEOHUZHFDQXVH(%;IRUQXPB]HURV(&;IRUQXPBRQHVDQGWKHODEHO
$%&
IRUWKHEHJLQQLQJRIWKH
DUUD\[7RUHIHUHQFHWKHDUUD\ORFDWLRQ[>L@>M@ZHQHHGWRXVHWKHIDFWWKDWWKHDGGUHVV[>L@>M@LVL
ME\WHVSDVW[>@>@ $%&7KHLQLFRPHVIURPWKHGHFODUDWLRQLQW[>@>@ZKLFKWHOOV
XVWKDWHYHU\URZFRQWDLQVIRXUE\WHORFDWLRQV$OWKRXJKZHPLJKWOLNHWRXVH(',IRULDQG(6,IRUM
DQGUHIHUHQFH[>L@>M@XVLQJ>$%&(',(6,@WKLVPXFKODWLWXGHGRHVQRWH[LVWLQWKHFRGLQJVSDFH
7KHPXOWLSOLHULVDOORZHGRQRQHUHJLVWHUEXWQHLWKHUDPXOWLSOLHURIQRUKDYLQJWZRVFDOHGUHJLVWHUVLV
DOORZHG+HQFHLWPDNHVVHQVHWRXVH(';IRUL>$%&(';(6,@
3URJUDP
QXPB]HURV
QXPBRQHV
IRUL LL L
IRUM MM M
^
LI[>L@>M@
QXPB]HURV QXPB]HURV
LI[>L@>M@
QXPBRQHV QXPBRQHV
`
,PPHGLDWH6WRUDJH
7KHMRERIDQDVVHPEOHULVWRSURGXFHREMHFWFRGHILOHV$QDVVHPEO\ODQJXDJHSURJUDPLVWKHLQSXWWRDQ
DVVHPEOHU([FHSWIRUFRPPHQWVDOOWKHOLQHVRIDOOWKHDVVHPEO\ODQJXDJHILOHVZHKDYHZRUNHGZLWKVRIDU
KDYHFRQVLVWHGRILQVWUXFWLRQVZKLFKDUHWUDQVODWHGLQWRSURFHVVRULQVWUXFWLRQVDVZDVGRQHLQ
FKDSWHU
$XWRPDWLFWUDQVODWLRQE\WKHDVVHPEOHULVDJUHDWFRQYHQLHQFHDQGLVPRVWO\ZKDWDVVHPEO\ODQJXDJHLVDOO
DERXW1RQHWKHOHVVLWLVVRPHWLPHVGHVLUDEOHWRIRUHJRWUDQVODWLRQDQGVSHFLI\REMHFWFRGHE\WHVGLUHFWO\
7ZRQRWDEOHRFFDVLRQVIRUWKLVDUH
z
'DWDE\WHVQHHGWREHLQVHUWHGGLUHFWO\
z
3URFHVVRULQVWUXFWLRQVQHHGWREHDVVHPEOHGE\KDQG
7KHIROORZLQJV\QWD[LVXVHGWRLQVHUWLPPHGLDWHO\JLYHQE\WHVGLUHFWO\LQWRWKHPDFKLQHFRGH
%\WH'HILQLWLRQ$VVHPEOHU'LUHFWLYH
,Q1$60WKHFRPPDQG
GELPP
VWRUHVDQ\RQHE\WHQXPEHULQWRWKHREMHFWFRGHILOH
GE
VWDQGVIRUGHILQHE\WH,QVWUXFWLRQVVXFKDV
GE
ZKLFK
GRQRWWUDQVODWHLQWRSURFHVVRULQVWUXFWLRQVDUHVRPHWLPHVFDOOHGSVHXGRLQVWUXFWLRQV6LQFHWKH\DUHDFWXDOO\
LQVWUXFWLRQVWRWKHDVVHPEOHULWLVEHWWHUWRFDOOWKHPDVVHPEOHUGLUHFWLYHV$VVHPEOHUGLUHFWLYHVW\SLFDOO\
ODFNWKHXQLYHUVDOLW\RISURFHVVRULQVWUXFWLRQVZKLFKXVXDOO\IROORZWKHIRUPDWODLGGRZQE\WKH
PDQXIDFWXUHU(GOLQDVIROORZVWKH8QL[WUDGLWLRQWKDWDOODVVHPEOHUGLUHFWLYHVEHJLQZLWKDGRWDQG
XVHV
GE
:LWKRXWWKHLQLWLDOGRWWKHGHILQHE\WHV\QWD[LVYHU\ZLGHVSUHDG:KHQXVHGZLWKODEHOVLWZRUNVLQERWK
0LFURVRIWDQG7XUERDVVHPEOHUV,QWKHVHDVVHPEOHUV
3URJUDP
029(%;QXPB]HURV
029(&;QXPBRQHV
029(';,QLWLDOO\L
2XWHUORRSEHJLQVKHUH
27/029(6,/HWM
,QQHUORRSEHJLQVKHUH
,1/029($;>$%&(6,(';@
$%& [>@>@
('; [>L@>@[>@>@
M [>L@>M@[>L@>@
(6, M
&03($;&KHFNIRU]HURV
-1(12=
,1&(%;&RXQW]HURV
12=&03($;&KHFNIRURQHV
-1(122
,1&(&;&RXQWRQHV
122,1&(6,M MO
&03(6,&KHFNWKDWM
-/,1/,QQHUORRSHQGVKHUH
$''(';,QFUHDVH(';E\
&03(';
-/27/2XWHUORRSHQGVKHUH
$%&123%HJLQDUUD\KHUH
WKHGHILQHE\WHGLUHFWLYHKDVWKHIODYRURIDGDWDW\SHGHFODUDWLRQ7KLVGDWDW\SHLVXVHGWRUHVROYH
DPELJXLWLHVRIWKHNLQGQRWHGLQ
VHFWLRQ
)RUH[DPSOHLIWKHODEHO
$%&
LVXVHGLQDSURJUDPZLWKWKHOLQH
$%&'%$%&LVRIW\SHE\WH
WKHQDFRPPDQGVXFKDV
1(*>$%&@
PHDQVWKHVDPHWKLQJDV
1(*%<7(375>$%&@
,Q1$60DQGLQ(GOLQDVSURJUDPVWKHUHLVQRW\SHVLJQLILFDQFHDWWDFKHGWR
GE
&RPPRQHPEHOOLVKPHQWV
RIWKHVLPSOHV\QWD[DOVRZRUNLQERWK
GELPPLPP
ZKHUHDVHTXHQFHRIRQHE\WHQXPEHUVIROORZVWKH
GE
VWRUHVDVHTHQFHRIE\WHVLQWRWKHREMHFWFRGHILOH
,Q(GOLQDVLWLVDOVRSRVVLEOHWRXVHDQLQWHJHUPXOWLSOLHURQWKHOHIW)RUH[DPSOHWKHIROORZLQJFRGHVWRUHV
]HURLQWRRQHKXQGUHGE\WHVRIPHPRU\
GE
,Q1$60WKHVDPHHIIHFWFDQEHDFKLHYHGXVLQJWKHFRGH
7,0(6GE
+DQG&RGLQJRI,QVWUXFWLRQV
%HFDXVHDQHZSURFHVVRURIWHQXVHVDQLQVWUXFWLRQVHWZKLFKLVWKHVDPHDVDQROGLQVWUXFWLRQVHWH[FHSWIRU
RQHRUWZRQHZLQVWUXFWLRQVLWLVRIWHQZRUWKZKLOHWRXVHDQROGDVVHPEOHUWRSURJUDPDQHZSURFHVVRU1HZ
LQVWUXFWLRQVFDQEHXWLOL]HGE\KDQGFRGLQJWKHP2SHQVRXUFHDGYRFDWHVPD\ZHOOQRWHWKDWLIWKHDVVHPEOHU
ZHUHDQRSHQVRXUFHSURJUDPLWFRXOGVLPSO\EHUHSURJUDPPHGWRKDQGOHWKHQHZLQVWUXFWLRQ%XWWKDWLV
DQRWKHUTXHVWLRQ
3URJUDP
8VLQJLPPHGLDWHVWRUDJHWRHQFRGHWKH&38,'LQVWUXFWLRQ
029($;
GE)+$+,PPHGLDWHVWRUDJH
,QLWLDOL]LQJ'DWD
,Q&LWLVHDV\WRJHWWKHLPSUHVVLRQWKDWWKHUHLVQRGLIIHUHQFHEHWZHHQDGHFODUDWLRQZLWKDQLQLWLDOL]DWLRQ
VXFKDV
FKDU[
DQGDGHFODUDWLRQIROORZHGE\DQDVVLJQPHQWVXFKDV
FKDU[
[
,QIDFWKRZHYHUWKHUHLVDGLIIHUHQFH,QWKHVHFRQGFDVHWKHUHLVDQLPSOLHGSURFHVVRULQVWUXFWLRQZKLFK
VWRUHVWKHLPPHGLDWHYDOXH,QWKHILUVWFDVHKRZHYHUQRSURFHVVRULQVWUXFWLRQLVLPSOLHG7KHVWRUDJH
LQGLFDWHGPD\EHSHUIRUPHGE\VWRULQJWKHDWDSURJUDPLQWHUQDODGGUHVVE\WKHDVVHPEOHUEHIRUHWKH
SURJUDPLVHYHUORDGHG
3URJUDP
7LQ\(GOLQDVSURJUDPZKLFKXVHVDODEHOWRDFFHVVVWRUHGGDWD
029$/>$%&@
287>@$/
5(7
$%&GE
&KDSWHU7+(67$&.
7KHVWDFNLVDSRUWLRQRIPHPRU\ZKLFKLVVKDUHGZLWKWKHRSHUDWLQJV\VWHP,WLVXVHGE\SURJUDPVIRU
FRPPXQLFDWLRQZLWKVXESURJUDPVIRUWHPSRUDU\VWRUDJHDQGZKHQPDNLQJV\VWHPFDOOV,WLVFDOOHGWKH
VWDFNEHFDXVHLWKDVDODVWVWRUHGILUVWUHWULHYHGSROLF\,WLVLQIDFWDQH[DPSOHRIWKHGDWDVWUXFWXUHWKDWLV
FDOOHGDVWDFN%HFDXVHLWLVXVHGE\WKHRSHUDWLQJV\VWHPDVZHOODVE\WKHSURJUDPPHULWPXVWEHXVHG
UHVSRQVLEO\0LVXVLQJWKHVWDFNLVDYHU\HDV\ZD\WRFUDVKDSURJUDPRUWKHZKROHV\VWHPLIWKHRSHUDWLQJ
V\VWHPLVXQSURWHFWHG
3XVKDQG3RS2SHUDWLRQV
7KHIROORZLQJILJXUHVKRZVWKHVWDFNDQGWKH(63UHJLVWHU7KLVUHJLVWHUKDVWKHMRERINHHSLQJWUDFNRIWKH
VWDFN,WGRHVWKLVE\KROGLQJWKHDGGUHVVRIWKHWRSRIWKHVWDFN7KH63LQ(63VWDQGVIRUVWDFNSRLQWHU
$OWKRXJKWKH(63LVFDOOHGDJHQHUDOUHJLVWHUEHFDXVHLWLVDFFHVVLEOHWRWKHSURJUDPPHUOLNHWKHUHJLVWHUV
($;(%;HWFZULWHVWR(63VKRXOGEHGRQHRQO\ZLWKJUHDWFDUH
6XSSRVHWKDW(63FRQWDLQHGWKHDGGUHVV+DVLQ
)LJXUH
7KHQVWRULQJWKHE\WH+RQWKHVWDFNZRXOG
ILOOWKHORFDWLRQ+DQGWKHVWDFNSRLQWHUZRXOGEHFKDQJHGDVVKRZQLQ
)LJXUH
7KLVNLQGRIRSHUDWLRQ
LVFDOOHGDSXVK7KHRQHE\WHSXVKVKRZQKHUHLVHVVHQWLDOO\WKHVDPHDVWKHIROORZLQJWZRRSHUDWLRQV
)LJXUH%HIRUH3XVK
)LJXUH$IWHU3XVK
'(&(630RYHWKHSRLQWHUWRWKHILUVWYDFDQF\
029>(63@+6WRUH+DWWKHDGGUHVVLQ(63
,QIDFWWKH[GRHVQRWDOORZRQHE\WHSXVKHV$OOSXVKHVPXVWEHHLWKHUWZRE\WHRUIRXUE\WHSXVKHV7KH
QXPEHURIE\WHVSXVKHGLVGHWHUPLQHGE\WKHVL]HRIWKHRSHUDQGRQWKH
386+
LQVWUXFWLRQ
7KH
386+
&RPPDQG
7KHPRVWFRPPRQIRUPRIWKH386+LQVWUXFWLRQLV
386+UHJ
$OORZDEOHUHJLVWHUVLQFOXGHWKHDQGELWJHQHUDOUHJLVWHUVEXWQRWWKHHLJKWELWUHJLVWHUV0HPRU\DQG
LPPHGLDWHRSHUDQGVFDQDOVREHXVHGZLWK
386+
EXWWKHUHJLVWHURSHUDQGIRUPLVWKHPRVWXVHIXO
)LJXUH
DQG
)LJXUH
VKRZWKHHIIHFWRID
386+($;
LQVWUXFWLRQ
)LJXUH%HIRUH
386+($;
)LJXUH$IWHU
386+($;
LVYHU\VLPLODUWR
68%(63
029>(63@($;
%HFDXVHWKHVWDFNSRLQWHUSRLQWVWRWKHODVWRFFXSLHGORFDWLRQUDWKHUWKDQWKHILUVWXQRFFXSLHGORFDWLRQRIWKH
VWDFND
386+
PXVWEHFDUULHGRXWE\VXEWUDFWLQJIURPWKHVWDFNSRLQWHUILUVWDQGWKHQWUDQVIHUULQJWKHE\WHVWR
WKHVWDFNUDWKHUWKDQWKHRWKHUZD\DURXQG+DYLQJWKHVWDFNSRLQWHUSRLQWWRWKHILUVWDYDLODEOHORFDWLRQ
ZRXOGEHDUHDVRQDEOHSROLF\LIDOOSXVKHVDQGSRSVZHUHWKHVDPHVL]H%XWVLQFHSXVKHVDQGSRSVPD\EH
HLWKHUWZRRUIRXUE\WHVWKLVLVQRWDWHQDEOHSROLF\
7KH
323
&RPPDQG
7KHRSSRVLWHRSHUDWLRQLVFDOOHGDSRS/LNHWKH
386+
LQVWUXFWLRQ
323
WDNHVUHJLVWHUDQGPHPRU\RSHUDQGV
ZKLFKPD\EHHLWKHUWZRRUIRXUE\WHV8QOLNH
386+
LWGRHVQRWWDNHLPPHGLDWHRSHUDQGV$VZLWKSXVKHV
WKHVL]HRIWKHRSHUDQGGHWHUPLQHVWKHQXPEHURIE\WHVWREHSRSSHG6LQFH%;LVDWZRE\WHUHJLVWHU
323
%;
SRSVWZRE\WHVRIIWKHVWDFN
323%;
LVYHU\VLPLODUWR
029%;>(63@
$''(63
2QHXVHIRUWKHVWDFNLVVLPSO\IRUVWRUDJHZKHQWKHUHDUHQRWHQRXJKUHJLVWHUVDYDLODEOH6XSSRVHWKHUHDUH
YDOXHVLQ($;DQG(%;ZKLFKDUHLPSRUWDQWDQGQHHGWREHVDYHGEXWWKDWDOVRDFRPSXWDWLRQKDVWREH
GRQHZKLFKXVHVWKHUHJLVWHUV($;DQG(%;7KLVLVDVLWXDWLRQZKLFKFDOOVIRUXVLQJWKHVWDFN%HIRUHWKH
FRPSXWDWLRQLVGRQHWKHYDOXHVLQWKHUHJLVWHUV($;DQG(%;PD\EHVDYHGRQWKHVWDFN$IWHUWKH
FRPSXWDWLRQLVILQLVKHGWKH\PD\EHUHVWRUHGDJDLQ7KHIROORZLQJFRGHGRHVWKLV
386+($;
386+(%;
&RPSXWDWLRQ
323(%;
323($;
7KHRUGHURIWKHSRSVLVWKHH[DFWUHYHUVHRIWKHRUGHURIWKHSXVKHV7KLVLVEHFDXVHRIWKHODVWVWRUHGILUVW
UHWULHYHGFKDUDFWHURIDVWDFN7KHYDOXHVLQ($;DQG(%;DWWKHHQGVKRXOGEHWKHVDPHDVDWWKH
EHJLQQLQJ%XWWKLVZLOORQO\EHWUXHLIWKHLQWHUYHQLQJFRPSXWDWLRQXVHVWKHVWDFNUHVSRQVLEO\7KLVPHDQV
WKDWHDFKSXVKVKRXOGEHPDWFKHGZLWKDSRS,ISXVKHVDQGSRSVDUHQRWEDODQFHGWKHQWKHYDOXHVSRSSHG
LQWR(%;DQG($;DWWKHHQGRIFRPSXWDWLRQZLOOQRWEHWKHVDPHDVWKHLURULJLQDOYDOXHV
:KHQZULWLQJDXVHUSURJUDPWREHUXQLQ8QL[LWLVQRWQHFHVVDU\WRLQLWLDOL]HWKHVWDFNE\VWRULQJDYDOXHLQ
(63,QIDFWVLQFHWKHVWDFNLVDOUHDG\VHWXSVWRULQJDQDUELWUDU\YDOXHLQ(63ZRXOGGLVUXSWWKHH[LVWLQJ
VWDFNDQGFUDVKWKHSURJUDP:KHQZULWLQJDSURJUDPWRUXQLQ(GOLQDVKRZHYHULWLVQHFHVVDU\WRLQLWLDOL]H
(63
6XESURJUDPV
+LJKOHYHOSURJUDPPLQJODQJXDJHVXVHVXESURJUDPVLQRUGHUWRUHGXFHFRPSOH[WDVNVWRVLPSOHU
FRPSRQHQWV,Q&VXESURJUDPVDUHIXQFWLRQV$IXQFWLRQPD\EHFDOOHGDVWKRXJKLWZHUHDQRWKHU&
LQVWUXFWLRQ,IWKHIXQFWLRQ
VXESU
KDVEHHQGHILQHGWKHQLWPD\DSSHDULQDOLQHRIDPDLQSURJUDPDVLQ
3URJUDP
3URJUDP
PDLQ
^
LQW[\]
VXESU7KLVVXESURJUDPLVGHILQHGVHSDUDWHO\
`
7KH
&$//
DQG
5(7
&RPPDQGV
&RGLQJDQDVVHPEOHUSURJUDPZKLFKKDVDVXESURJUDPLVGRQHXVLQJWKH
&$//
DQG
5(7
LQVWUXFWLRQV
5(7
VWDQGVIRUUHWXUQ7KHVHFRPPDQGVZRUNOLNHMXPSWRDQGMXPSEDFNFRPPDQGV7KHIRUPDWRIWKH
&$//
LQVWUXFWLRQLVYHU\VLPLODUWRWKHIRUPDWRIWKH
-03
LQVWUXFWLRQ
3URJUDP
VXESU
^
LQWDEF
UHWXUQF
`
&$//ODEHO
$VZLWKWKH
-03
LQVWUXFWLRQWKHODEHOLVFUHDWHGE\WKHSURJUDPPHUDQGUHIHUVWRWKHOLQHZKRVHODEHOILHOGLW
RFFXSLHV
:KHQWKHVXESURJUDPLVGRQHFRQWUROQHHGVWREHWUDQVIHUUHGEDFNWRWKHPDLQSURJUDPLQSDUWLFXODUWKH
QH[WLQVWUXFWLRQH[HFXWHGLQWKHPDLQSURJUDPQHHGVWREHWKHLQVWUXFWLRQIROORZLQJWKH
&$//
LQVWUXFWLRQ7R
PDNHWKLVSRVVLEOHWKHSURFHVVRUSXVKHVWKHDGGUHVVRIWKHQH[WLQVWUXFWLRQRQWRWKHVWDFNEHIRUHLWOHDYHVWKH
PDLQSURJUDP
&$//
GRHVWKLV7KH
5(7
LQVWUXFWLRQSRSVWKLVDGGUHVVRIIWKHVWDFNDQGMXPSVWRLW
)RUH[DPSOH
3URJUDP
LVDSURJUDPWKDWDFFHSWVDXVHULQSXWXVHVDVXESURJUDPZKLFKDGGVWRWKH
(%;UHJLVWHUWRLQFUHPHQWWKHQXPEHUDQGWKHQRXWSXWVWKHUHVXOWEDFNWRWKHXVHU
3URJUDP
029(63+LQLWLDOL]HWKHVWDFN
(GOLQDVSURJUDPVPXVWLQLWLDOL]HWKHVWDFN
8QL[SURJUDPVPXVWQRW
,1($;>@*HWDXVHULQSXW
029(%;($;(%;LVZKHUHWKHVXEURXWLQHZRUNV
&$//VXESU/HDYHIRUWKHVXEURXWLQH
029($;(%;%DFNQRZIURPWKHVXEURXWLQH
287>@($;2XWSXWWKHLQFUHPHQWHGYDOXH
5(7*REDFNWR(GOLQDV
VXESU
,1&(%;6XESURJUDPGRHVLWVMRE
5(7*REDFNWRWKHPDLQSURJUDP
)RUDPRUHLQYROYHGH[DPSOHFRQVLGHUWKHIROORZLQJDOJRULWKP7KLVDOJRULWKPLVDWWKHKHDUWRIDZHOO
NQRZQXQVROYHGPDWKHPDWLFVSUREOHPFDOOHGWKH&ROODW]3UREOHP
,I[LVHYHQGLYLGHLWE\
,I[LVRGGPXOWLSO\LWE\DQGDGGWRLW
5HSHDWWKLVSURFHVVXQWLO[
6XSSRVHZHZDQWDSURJUDPZKLFKH[HFXWHVWKLVDOJRULWKPDQGFRXQWVKRZPDQ\VWHSVDUHUHTXLUHGXQWLOWKH
YDOXHRI[EHFRPHV
6LQFHLWUHTXLUHVDORRSWRGHWHUPLQHZKHWKHUDQXPEHULVHYHQRURGGRUWRGLYLGHLWE\LIZHDUHXVLQJ
RQO\DGGVXEWUDFWDQGFRQGLWLRQDOMXPSFRPPDQGVLWPDNHVVHQVHWRGHYLVHDVXESURJUDPWRGRWKLV
6SHFLILFDOO\VXSSRVHZHDVVLJQWKHVXESURJUDPWKHWDVNRIH[DPLQLQJWKH($;UHJLVWHUDQGVWRULQJKDOIRI
($;LQ(%;LI($;LVHYHQDQG]HURLQ(%;RWKHUZLVH:HPD\FRGHWKLVVXESURJUDPDVIROORZV
3URJUDP
+$)029(&;($;
029(%;
$*1,1&(%;&RXQWWKHVXEWUDFWLRQV
68%(&;5HSHDWHGO\VXEWUDFW
-*$*1
-='81,WFRPHVRXWHYHQ
029(%;,WVQRWHYHQ
'815(7
:LWKWKLVVXESURJUDPZHPD\QRZZULWHDPDLQSURJUDPZKLFKH[HFXWHV
3URJUDP
3DUDPHWHU3DVVLQJ
2QHRIWKHPRVWLPSRUWDQWIXQFWLRQVRIWKHVWDFNLVWKDWLWLVXVHGIRUSDUDPHWHUSDVVLQJ)RUH[DPSOH
VXSSRVHWKHFKDUDFWHUFRGHFRQYHUWLQJIXQFWLRQ
WRORZHU
LVFDOOHGLQD&SURJUDP
7KH
WRORZHU
IXQFWLRQLQWKHVWDQGDUG&OLEUDU\FW\SHKFRQYHUWVWKHFKDUDFWHUFRGHVWRORZHUFDVH)RU
H[DPSOHRQDPDFKLQHXVLQJ$6&,,FRGHLWZLOOUHWXUQWKH$6&,,FRGHIRUDLIJLYHQWKH$6&,,
FRGHIRU$DVDQLQSXWSDUDPHWHU7KHLQSXWSDUDPHWHULVSXVKHGRQWRWKHVWDFN6RWKHDVVHPEOHUFRGHIRU
WKHVDPHIXQFWLRQFDOOORRNVOLNHWKLV
3URJUDP
029(%;
386+(%;
029(';
,1($;>';@
$%&&03($;
-(),1,I($; WKHQLWVRYHU
,1&(';8VH(';DVWKHFRXQWHU
&$//+$)7KLVLVWKHVXEURXWLQHFDOO
&03(%;(%; PHDQV($;LVRGG
-(2''
029($;(%;,IQRWWKHQ(%;LVKDOIRI($;
-03$%&
2''029(%;($;7ULSOH($;DQGDGG
$''($;(%;
$''($;(%;
,1&($;
-03$%&
),1029($;(';(';FRQWDLQVWKHILQDOFRXQW
029(';
287>';@($;
5(7
3URJUDP
LQFOXGHFW\SHK!
PDLQ
^
LQW[\
[ [ $
\ WRORZHU[\ D
`
&$//WRORZHU
$''(63
$OWKRXJKLWPLJKWVHHPOLNHDQDWXUDOLGHDWRXVHWKHVWDFNIRUWKHUHWXUQYDOXHLWLVPRUHFRPPRQWRXVHD
UHJLVWHU,QJQX&IRUWKH[UHWXUQHGLQWHJHUYDOXHVDUHVWRUHGLQWKH($;UHJLVWHU/DQJXDJHVGLIIHUDVWR
ZKHWKHUWKHVXESURJUDPRUWKHPDLQSURJUDPLVUHVSRQVLEOHIRUSRSSLQJWKHSDUDPHWHUVRIIWKHVWDFN,Q
)RUWUDQ%DVLFDQG3DVFDOWKHVXESURJUDPSRSVWKHVWDFNEXWLQ&WKHFDOOLQJSURJUDPGRHV7KLVLVWKH
UHDVRQIRUWKH
$''(63
LQVWUXFWLRQLQWKHFDOOLQJSURJUDPVMXVWVKRZQ
/DQJXDJHVDOVRGLIIHULQWKHRUGHULQZKLFKSDUDPHWHUVDUHSXVKHGRQWRWKHVWDFN&SXVKHVSDUDPHWHUV
VWDUWLQJIURPWKHULJKW6XSSRVHZHKDYHGHILQHGDQLQWHJHUSRZHUIXQFWLRQ
LSRZ
LQWLSRZLQWEDVHLQWH[SRQHQW
7KHDVVHPEOHUFRGHWRFDOOWKLVIXQFWLRQWRFDOFXODWH
ORRNVOLNHWKLV
029(%;
386+(%;
029(%;
386+(%;
&$//LSRZ
$''(63
$IWHUWKLVFDOOWKHUHVXOW
LSRZ
ZLOOEHVWRUHGLQWKH($;UHJLVWHU
7KH*OREDO$VVHPEOHU'LUHFWLYH
,QWKH
R
ILOHVSURGXFHGE\WKHJQXFRPSLOHUV\PEROVVXFKDV
SULQWI
RU
WRORZHU
ZKLFKQHHGH[WHUQDO
OLQNDJHDUHFRGHGGLIIHUHQWO\LQWKHV\PEROWDEOHV:LWKRXWWKLVVSHFLDOFRGLQJWKHJQXOLQNHUZLOOSDVVWKHP
E\DQGOLQNDJHZLOOIDLO,QRUGHUWRUHFHLYHWKLVVSHFLDOHQFRGLQJWKHDVVHPEO\ODQJXDJHVRXUFHFRGHPXVW
VSHFLDOO\LQGLFDWHV\PEROVZKLFKDUHWRUHFHLYHWKLVWUHDWPHQW7KHUHLVDQDVVHPEOHUGLUHFWLYHUHFRJQL]HGE\
WKHJQXDVVHPEOHUDQGE\(GOLQDVZKLFKZLOOFDXVHWKHDVVHPEOHUWRHQFRGHDV\PEROLQWKHV\PEROWDEOHDV
DYDLODEOHIRUOLQNDJH,WVV\QWD[LV
JOREOV\PERO
,Q1$60WKHV\QWD[LV
JOREDOV\PERO
&DOOLQJ$VVHPEOHUIURP&
7KH
+$)
VXESURJUDPZRXOGQRWZRUNLIFDOOHGIURP&EHFDXVHLWGRHVQRWUHWXUQYDOXHVLQWKH($;UHJLVWHU
$OVRLWGRHVQRWSXVKWKHUHJLVWHUVLWXVHV,QWKHFRGHEHORZ(&;LVSXVKHGEHFDXVHLWLVXVHGDQGWKH
FDOOLQJSURJUDPFRXOGEHXVLQJLWIRUVRPHWKLQJHOVH:HDOVRQHHGWRPDNHWKHIXQFWLRQQDPHYLVLEOHXVLQJ
WKH
JOREDO
GLUHFWLYH
:HKDYHMXVWZULWWHQDIXQFWLRQLQDVVHPEOHUZKLFKZHFDQFDOOIURPD&SURJUDP7KH&SURJUDPZLOOVWRUH
WKHFDOOLQJSDUDPHWHURQWKHVWDFN,WZLOOEHEXULHGXQGHUWKHUHWXUQDGGUHVVSXVKHGE\WKHFDOOLQJSURJUDP
DQGWKHFRQWHQWVRI(&;ZKLFKZHUHMXVWSXVKHG7KHVHWZRLWHPVRFFXS\HLJKWE\WHVRQWKHVWDFNVRWKH
FDOOLQJSDUDPHWHULVDFFHVVHGDWWKHDGGUHVV(637KHUHVXOWLVVWRUHGLQ($;LQVWHDGRI(%;7RVDYH
WKHREMHFWFRGHDVD
R
ILOHZKLOHLQ(GOLQDVXVHWKHRNH\7RSURGXFHDQREMHFWFRGHILOHXVLQJ1$60
HQWHU
3URJUDP
JOREDOKDOIRUJOREOLQ(GOLQDV
KDOI386+(&;(&;LVXVHGVRSXVKLW
029(&;>(63@
6WDFNWRSLQWHJHUV
029($;
$*1,1&($;&RXQWWKHVXEWUDFWLRQV
68%(&;5HSHDWHGO\VXEWUDFW
-*$*1
-='81,WFRPHVRXWHYHQ
029($;,WVQRWHYHQ
'81323(&;
5(7
OLQX[ER[QDVPIHOIKDOIDVP
7KH
IHOI
VZLWFKVSHFLILHVWKHIRUPDWRIWKHREMHFWFRGHILOHZKLFKLQFXUUHQW/LQX[LVHOI7KLVIRUPDWLV
GLVFXVVHGIXUWKHULQ
FKDSWHU
3URJUDP
LVD&SURJUDPZKLFKFDOOVWKHIXQFWLRQ
KDOI
ZKRVHDVVHPEO\FRGHLVVKRZQLQ
3URJUDP
,I
3URJUDP
LVVDYHGLQDILOH
FROODW]F
WKHQWRFRPSLOHLWDQGOLQNLWZLWK
KDOI
XVH
JFF
RQERWK
ILOHV
OLQX[ER[JFFFROODW]FKDOIR
5HFXUVLRQ
,QUHFXUVLRQPXFKRIWKHZRUNRIFRPSXWDWLRQLVGRQHE\WKHSDUDPHWHUSDVVLQJPHFKDQLVP
$UHFXUVLYHGHILQLWLRQFDQYHU\RIWHQEHHDVLO\WXUQHGLQWRDFRPSXWDWLRQDOO\HIIHFWLYHLIQRWHIILFLHQW
SURJUDP7KLVLVW\SLFDOO\LOOXVWUDWHGXVLQJWKH)LERQDFFLQXPEHUV
3URJUDP
VKRZVKRZWKLVUHFXUVLYHGHILQLWLRQFDQEHWXUQHGLQWR&FRGH,QDVVHPEO\ODQJXDJHZHFDQ
FRGHWKLVHDVLO\SURYLGHGZHUHFDOOWKDWXVHGUHJLVWHUVRWKHUWKDQ($;PXVWEHSXVKHG
3URJUDP
VKRZV
KRZZHFDQJHWE\XVLQJRQO\(&;DQG($;7RWHVWWKLVSURJUDPIURP&RQHFDQXVHDVPDOOFDOOLQJ
SURJUDPVXFKDV
3URJUDP
7RWHVWDSURJUDPOLNHWKLVXVLQJ(GOLQDVLWLVDOVRQHFHVVDU\WRLQLWLDOL]HWKH
VWDFNDVLVVKRZQLQWKHILUVWOLQHRI
3URJUDP
3URJUDP
PDLQ
^
LQWFRXQW[\
FRXQW
SULQWI(QWHUDQXPEHU
VFDQIG[
ZKLOH[
^
FRXQW FRXQW
\ KDOI[7KLVLVWKHVXEURXWLQHFDOO
LI\
[ \
HOVH
[ [
SULQWI?Q[ G[
`
SULQWI?Q7KHUHZHUHGLWHUDWLRQV?Q?QFRXQW
`
3URJUDP
LQWILELQWN
^
LQWG
LIN
G
HOVH
G ILENOILEN
UHWXUQG
`
3URJUDP
JOREDOILE
ILE386+(&;*LYHVXVDFFHVVWR(&;
029($;>(63@
$FFHVVSDUDPHWHU
&03($;LIN
-$((/6
029($;3XWWKHUHWXUQYDOXHLQ($;
-03'81
(/6'(&($;*HWN±
029(&;($;($;ZLOOEHRYHUZULWWHQ
386+($;3DVVN²DVSDUDPHWHU
&$//ILE*HWEDFNILEN±OLQ($;
$''(63*HWULGRISDUDPHWHU
'(&(&;*HWN±
386+(&;3DVVNDVSDUDPHWHU
029(&;($;3XWILEN±OLQWR(&;
&$//ILE*HWEDFNILEN±LQ($;
$''(63*HWULGRISDUDPHWHU
$''($;(&;$GGWKHWZRSDUWLDOUHVXOWV
323(&;5HVWRUHWKHRULJLQDOYDOXH
5(7
3URJUDP
PDLQ
^
LQW[\
SULQWI(QWHUDQXPEHU
VFDQIG[
\ ILE[
SULQWIG?Q\
`
&KDSWHU/,18;86(5352*5$06
$WWKHEHJLQQLQJRI
FKDSWHU
LWZDVQRWHGWKDWPHPRU\DGGUHVVHVXVHGLQ/LQX[XVHUSURJUDPVDUHQRWWUXH
PHPRU\DGGUHVVHV7KHPDLQUHDVRQIRUWKLVLVWKDW/LQX[QHHGVWRSUHYHQWWKHXVHUIURPKDYLQJGLUHFW
DFFHVVWRPHPRU\6HH
)LJXUH
)LJXUH3URWHFWHG2SHUDWLQJ6\VWHPVXFKDV/LQX[
/LQX[LVDPXOWLWDVNLQJV\VWHP$PXOWLWDVNLQJV\VWHPKDVPDQ\XVHUMREVDQGDQRSHUDWLQJV\VWHPZKLFK
DUHDOOUXQQLQJDWRQFH2QDPDFKLQHZKHUHDQ\MREFDQRYHUZULWHWKHPHPRU\EHORQJLQJWRDQRWKHUMRED
PXOWLWDVNLQJV\VWHPLVLPSRVVLEOH0XOWLWDVNLQJUHTXLUHVPHPRU\SURWHFWLRQ/LQX[XVHVSDJLQJWR
LPSOHPHQWDPHPRU\SURWHFWLRQV\VWHP
3DJLQJZDVRULJLQDOO\GHVLJQHGDVDV\VWHPIRUHFRQRPL]LQJRQPHPRU\/LQX[XVHVLWIRUWKLVSXUSRVHDV
ZHOODVIRUPHPRU\SURWHFWLRQ3DJLQJZRUNVE\LQWHUFHSWLQJHDFKPHPRU\DFFHVVHQFRXQWHUHGLQWKHXVHUV
PDFKLQHFRGH,QRWKHUZRUGVHYHU\PHPRU\UHIHUHQFHLQDXVHUSURJUDPLVWXUQHGLQWRDUHTXHVWIRU
PHPRU\DFFHVVZKLFKLVUHTXLUHGWRJRDFURVVWKHGHVNRIWKHSDJLQJV\VWHPIRUDSSURYDO7KLVPHDQVWKDW
SDJLQJJHWVFRQWURORYHUPHPRU\DFFHVV,QRUGHUIRUWKLVWRKDSSHQWKHSURFHVVRUKDVWRKDYHSDJLQJZLUHG
LQWRLW
1HLWKHUWKHQRUWKHSURFHVVRUVVXSSRUWSDJLQJ7KHILUVW,QWHOSURFHVVRUZLWKSDJLQJVXSSRUWLV
WKH
0XOWLWDVNLQJ
%HIRUHPXOWLWDVNLQJRSHUDWLQJV\VWHPVH[LVWHGFRPSXWHUSURJUDPVZHUHH[HFXWHGLQVHTXHQFHLHRQHDIWHU
WKHRWKHU1RSURJUDPZDVDEOHWREHJLQH[HFXWLQJXQWLOWKHSURJUDPDKHDGRILWZDVILQLVKHG2SHUDWLQJ
V\VWHPVZKLFKUDQSURJUDPVLQVHULHVOLNHWKLVZHUHFDOOHGEDWFKRSHUDWLQJV\VWHPV$PXOWLWDVNLQJV\VWHP
DOORZVSURJUDPVWRWDNHWXUQVXVLQJSURFHVVRUV$QRSHUDWLQJV\VWHPSURJUDPFDOOHGWKHVFKHGXOHUDFWVDVD
UHIHUHHDQGIRUFHVXVHUSURJUDPVWR\LHOGWRRQHDQRWKHUHYHQZKHQWKH\DUHQRWILQLVKHG$WDQ\JLYHQ
PRPHQWWKHUHPD\EHPDQ\XVHUSURJUDPVWDNLQJWXUQVDQGZDLWLQJIRUSURFHVVRUWLPH(DFKRIWKHVH
SURJUDPVLVFDOOHGDWDVNRUDSURFHVV$GLVWLQFWLRQKDVWREHPDGHEHWZHHQDSURJUDPDQGDSURFHVVVLQFH
RQHSURJUDPFDQEHFDOOHGVHYHUDOWLPHVE\VHYHUDOXVHUVDOODWRQFH(DFKVHSDUDWHLQVWDQFHRIDSURJUDPLV
DSURFHVV,Q/LQX[ZHFDQOLVWWKHSURFHVVHVE\XVLQJWKH
OLQX[ER[SVDX[
FRPPDQG2UWRFRQGXFWDPRUHGHWDLOHGH[DPLQDWLRQZHFDQH[SORUHWKH
SURF
GLUHFWRU\
$PXOWLWDVNLQJV\VWHPVXFKDV/LQX[LVFRQWLQXDOO\MXJJOLQJLWVSURFHVVRUUHVRXUFHVSDVVLQJWKHPIURP
SURFHVVWRSURFHVV(DFKWLPHDSURFHVVJHWVEXPSHGIURPDSURFHVVRULWKDVWRVDYHLWVFXUUHQWVWDWH3DUWRI
WKHZRUNRIVDYLQJLVGRQHE\DKDUGZLUHGURXWLQHZKLFKLVH[HFXWHGZKHQWKH[GRHVDWDVNVZLWFK,W
VDYHVDOOFXUUHQWUHJLVWHUVWRDUHJLRQLQPHPRU\FDOOHGWKHWDVNVWDWHVHJPHQW7KHWDVNVWDWHVHJPHQWKROGV
WKHIUR]HQVWDWHRIDWDVNZKLFKLVQRWFXUUHQWO\UXQQLQJ(YHU\WDVNKDVLWVRZQWDVNVWDWHVHJPHQW7KHVH
WDVNVWDWHVHJPHQWVPDNHLWSRVVLEOHWRVZLWFKIURPRQHWDVNWRDQRWKHU
)LJXUH
VKRZVWKHEDVLFOD\RXWRI
DWDVNVWDWHVHJPHQWLQFOXGLQJWKHVSDFHIRUDOOWKHJHQHUDOUHJLVWHUVDQGDUHJLVWHUFDOOHGWKH&5UHJLVWHU
6RPHVSDFHWKDWLVXQPDUNHGLQWKLVILJXUHLVGLVFXVVHGLQ
FKDSWHU
)LJXUH7DVN6WDWH6HJPHQW
3DJLQJ
$VGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
[,2DGGUHVVHVGRQRWXQGHUJRSURFHVVLQJ,IWKH';UHJLVWHU
FRQWDLQVDQXPEHUVXFKDV)&+WKHQWKHH[HFXWLRQRIWKH
,1$/>';@
FRPPDQGFDXVHVWKHELWVRI';
WREHDSSOLHGGLUHFWO\WRWKHDGGUHVVEXV
)&+
6RRQWKHDGGUHVVEXVZHJHW
7KHWRSELWVDUHMXVW
0HPRU\DGGUHVVHVRQWKHRWKHUKDQGDUHQRWKDQGOHGLQVXFKDVWUDLJKWIRUZDUGIDVKLRQ$
029$/>)&+@
ZLOOQRWUHVXOWLQWKHVHVDPHELWVEHLQJSXPSHGRXWRQWRWKHDGGUHVVEXV0HPRU\DGGUHVVHVXQGHUJRDWZR
VWHSSURFHVV
6HJPHQWDWLRQ
3DJLQJ
2QO\DWWKHHQGRIWKLVSURFHVVDQGWKHQRQO\LIHYHU\WKLQJJRHVZHOOLVWKHUHDSK\VLFDODGGUHVVZKLFKFDQ
EHSXPSHGRXWRQWRWKHDGGUHVVEXV6LQFH/LQX[GRHVQRWXVHVHJPHQWDWLRQGLVFXVVLRQRILWLVGHIHUUHGWR
FKDSWHU
9LUWXDO0HPRU\
$OODGGUHVVHVOLHLQWKHWR*LJUDQJH$OWKRXJKLWZRXOGPDNHVHQVHWKDWGLIIHUHQWWDVNVEHUHTXLUHGWR
XVHGLIIHUHQWSDUWVRIWKH*LJVSDFH/LQX[GRHVQRWZRUNWKLVZD\/LQX[PD\DOORFDWHWKHVDPHDGGUHVVHV
WRGLIIHUHQWWDVNVDWWKHVDPHWLPH7KHVHDGGUHVVHVDUHQRWUHDO7KH\DUHFDOOHGYLUWXDODGGUHVVHV-XVWDVD
IUDXGXOHQWDFFRXQWDQWNHHSVWZRVHWVRIERRNVRQHIRUWKHDXGLWRUVDQGRQHIRUWKHWUXHVWDWHRIDIIDLUV
/LQX[PXVWNHHSDVHWRIYLUWXDODGGUHVVHVIRUHDFKWDVNSOXVRQHVHWRIUHDODGGUHVVHVIRUWKHDFWXDOSK\VLFDO
ORFDWLRQVRQGLVNDQGLQ5$0
)LJXUH[9LUWXDO0HPRU\6\VWHP
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7KHWUDQVODWLRQEHWZHHQWKHYLUWXDODGGUHVVHVDQGWKHUHDORQHVLVGRQHXVLQJH[WHQVLYHVHWVRIWDEOHVFDOOHG
SDJHWDEOHV(DFKSURFHVVKDVLWVRZQVHWRIWDEOHV
)LJXUH
VKRZVWKHVLWXDWLRQZKLFKUHVXOWV7KHUHDGHUZLOOQRWHWKDWPHPRU\KDVEHHQVHULRXVO\
RYHUERRNHG7KHUHDUHW\SLFDOO\PDQ\SURFHVVHVUXQQLQJ(DFKSURFHVVXVHVSRWHQWLDOO\*LJRIYLUWXDO
DGGUHVVVSDFH%XWWKHW\SLFDOFRPSXWHUKDVPXFKOHVV5$0WKDQZRXOGEHQHHGHGWRVXSSO\DOOSURFHVVHV
ZLWK*LJ$WILUVWVLJKWSDJLQJVHHPVWREHDYHU\EDGLGHD%XWLQIDFWLWHFRQRPL]HVJUHDWO\RQPHPRU\
XVDJHDQGLVRQHRIWKHUHDVRQVFRPSXWHUVDUHDEOHWRUXQELJSURJUDPVDVIDVWDVWKH\GR$LUOLQHVRYHUERRN
LQRUGHUWRNHHSWKHLUSODQHVRFFXSLHG7KHFRVWRIIUHHDLUOLQHWLFNHWVQRZDQGWKHQWREXPSHGSDVVHQJHUVLV
PRUHWKDQSDLGIRUE\NHHSLQJWKHVHDWVIXOO/LNHZLVHWKHRFFDVLRQDOSDJHIDXOWLVPRUHWKDQPDGHXSIRUE\
NHHSLQJPHPRU\EXV\
)LJXUH/LQX[9LUWXDO0HPRU\6\VWHP
3DJLQJZRUNVE\FRS\LQJWHPSRUDULO\LGOHSRUWLRQVRIPHPRU\RQWRGLVN$VVXJJHVWHGE\LWVQDPHLWZRUNV
LQXQLWVFDOOHGSDJHV
.3DJHV
2QDQ[PDFKLQHDSDJHLVE\WHV,QRUGHUWRVHWXSDSDJLQJV\VWHPIRXUDUHDVQHHGWREHGLYLGHG
XSLQWRSDJHV
7KHDYDLODEOHSK\VLFDOPHPRU\LVEURNHQXSLQWRSDJHV6LQFH
. +HYHU\SDJH
VWDUWVDWDQDGGUHVVHQGLQJLQWKUHHKH[]HURV3DJHVLQSK\VLFDOPHPRU\DUHVRPHWLPHVFDOOHGSDJH
IUDPHV
(DFKWDVNV*LJYLUWXDODGGUHVVVSDFHVLVDOVRGLYLGHGLQWRSDJHV*LJFRUUHVSRQGVWR0HJRI
SDJHV
$JDLQHYHU\SDJHVWDUWVDWDQDGGUHVVHQGLQJLQWKUHHKH[]HURV
7KHSRUWLRQRIWKHKDUGGLVNXVHGIRUSDJLQJLVDOVRGLYLGHGLQWRSDJHV7KLVSRUWLRQLVRIWHQFDOOHGWKH
VZDSVSDFH6LQFHPRVWGLVNVDUHIRUPDWWHGLQWRE\WHVHFWRUVWKLVPHDQVWKHQXPEHURIVHFWRUV
DOORFDWHGWRWKHVZDSVSDFHPXVWEHDPXOWLSOHRIHLJKW î
7KHSDJHWDEOHVXVHGWRWUDQVODWHYLUWXDODGGUHVVHVDUHWKHPVHOYHVVHWXSLQXQLWVRISDJHV7KHVHWDEOHV
DUHGHVFULEHGLQ
VHFWLRQ
1RWHWKDWSDJHVRIYLUWXDOPHPRU\SK\VLFDOPHPRU\DQGGLVNDOOKDYHWKHVDPHVL]H7KLVIDFLOLWDWHVGDWD
WUDQVIHUVLQSDJHVL]HTXDQWLWLHV
3DJLQJYV6ZDSSLQJ
7KHWHUPVZDSVSDFHLVXQIRUWXQDWHVLQFHVZDSSLQJWUDGLWLRQDOO\UHIHUVWRFRS\LQJHQWLUHSURFHVVHVWRDQG
IURPWKHGLVN:KHQGHPDQGIRUPHPRU\RQDPXOWLWDVNLQJV\VWHPH[FHHGVWKHDYDLODEOH5$0DYHU\
VLPSOHVROXWLRQWRWKLVSUREOHPLVWRMXVWFRS\VRPHSURFHVVRXWWRWKHGLVN7KDWLVZKDWVZDSSLQJGRHV
6ZDSSLQJGRHVQRWLQFUHDVHPHPRU\HIILFLHQF\,WMXVWSUHYHQWVPHPRU\IURPRYHUORDGLQJ,WFDQEHGRQH
E\WKHRSHUDWLQJV\VWHPRQLWVRZQ,WGRHVQRWUHTXLUHDQ\VSHFLDOKDUGZDUHVXSSRUW6ZDSSLQJZDV
FRPPRQLQ8QL[V\VWHPVEHIRUHSDJLQJZDVLQYHQWHG/LQX[GRHVQRWXVHVZDSSLQJDQGQHYHUKDV
$OWKRXJKVZDSSLQJVROYHVWKHSUREOHPRIPHPRU\XQDYDLODELOLW\LWGRHVQRWGRYHU\ZHOOLQWHUPVRI
PDNLQJPHPRU\XVDJHHIILFLHQW&RS\LQJZKROHSURFHVVHVLQWRDQGRXWRIPHPRU\WHQGVWRIUDJPHQW
PHPRU\MXVWDVFRS\LQJILOHVRQWRDQGRIIRIDGLVNWHQGVWRIUDJPHQWDGLVN)XUWKHUPRUHE\WUHDWLQJ
SURFHVVHVDVZKROHVLWPLVVHVRXWRQWKHSRVVLELOLW\WKDWE\NHHSLQJMXVWWKHPRVWLPSRUWDQWSDUWVRIHDFK
SURFHVVLQPHPRU\LWPD\EHSRVVLEOHWRUXQDOOWKHSURFHVVHVZLWKRXWPXFKRQJRLQJGLVNDFFHVV)DLOLQJ
WKLVLWPD\DWOHDVWEHSRVVLEOHWRJUHDWO\UHGXFHWKHIUDFWLRQRIWKHSURFHVVRUVWLPHZKLFKLVZDVWHGLQ
VHUYLFLQJPHPRU\IDXOWV
3DJH)DXOWV
8VLQJSDJLQJDOOWKHSURFHVVHVDUHUXQDVWKRXJKWKH\ZHUHDOOLQPHPRU\VLPXOWDQHRXVO\:KHQDPDFKLQH
LQVWUXFWLRQLVHQFRXQWHUHGZKLFKUHIHUVWRDPHPRU\ORFDWLRQDFWXDOO\RQGLVNWKLVLVFDOOHGDSDJHIDXOW
:KHQDSDJHIDXOWRFFXUVVRPHSDJHIUDPHLQ5$0KDVWREHFKRVHQVRWKDWWKHQHHGHGSDJHPD\EHORDGHG
LQWRLWIURPWKHGLVN,IQRSDJHIUDPHLVIUHHWKHQVRPHSDJHRIPHPRU\KDVWREHFKRVHQIRUWUDQVIHUWRWKH
GLVNVRDVWRIUHHXSDSDJHIUDPH7KLVPHPRU\SDJHLVFRSLHGWRWKHGLVNDQGWKHSDJHFRQWDLQLQJWKH
PLVVHGDGGUHVVLVFRSLHGLQWR5$07KHUHDUHPDQ\GLIIHUHQWDOJRULWKPVLQXVHZKLFKFKRRVHSDJHVWREH
H[SHOOHGIURPPHPRU\6XFKDOJRULWKPVDUHUHIHUUHGWRDVSDJLQJDOJRULWKPV0DQ\SDJLQJDOJRULWKPV
FKRRVHSDJHVIRUH[SXOVLRQRQWKHEDVLVRIXVDJH8QXVHGSDJHVJHWH[SHOOHG
.HUQHO$GGUHVVHV
$OWKRXJK/LQX[PD\DQGRIWHQGRHVDOORFDWHWKHVDPHYLUWXDODGGUHVVHVWRGLIIHUHQWWDVNVLWXVHVDVSHFLDO
VHWRIYLUWXDODGGUHVVHVIRUNHUQHOPHPRU\DQGWKHVHDUHQHYHUGXSOLFDWHG
z
.HUQHODGGUHVVHVOLHLQWKHUDQJHIURP&+WR))))))))+LHWR*LJ
z
8VHUDGGUHVVHVLQWKHUDQJHIURPWR%)))))))+LHWR*LJ
)LJXUH
LOOXVWUDWHVWKLVPHPRU\SROLF\IURPWKHVWDQGSRLQWRIDVLQJOHSURFHVV
)LJXUH
VKRZVLWIURP
WKHVWDQGSRLQWRIWKHHQWLUHV\VWHP8VHUYLUWXDODGGUHVVHVDUHDOORWWHGLQGLYLGXDOO\.HUQHODGGUHVVHVDUH
V\VWHPZLGH
)LJXUH6LQJOH3URFHVV9LHZRI0HPRU\
%HIRUHYHUVLRQRI/LQX[WKHVHSDUDWLRQRINHUQHODQGXVHUPHPRU\ZDVDFFRPSOLVKHGXVLQJWKH
VHJPHQWDWLRQSURFHVV/LQX[FXUUHQWO\PDNHVQRXVHRIVHJPHQWDWLRQ1RZWKHVHSDUDWLRQLVDFFRPSOLVKHG
VLPSO\DVDQDOORFDWLRQSROLF\7KLVLQFLGHQWDOO\PDNHV[/LQX[PRUHOLNH$OSKD/LQX[7KH$OSKD
DUFKLWHFWXUHKDVQRVHJPHQWDWLRQ6HJPHQWDWLRQLVGLVFXVVHGLQ
FKDSWHUV
DQG
.HUQHO3DJHV
7KH/LQX[SDJLQJDOJRULWKPQHYHUSDJHVNHUQHOPHPRU\RXWWRGLVN7KH/LQX[NHUQHOLVWKHUHIRUHDOZD\VLQ
5$0
7KLVLVRQHUHDVRQWKDWFRPSLOLQJ/LQX[VSHFLDOO\IRUHDFKPDFKLQHLVZRUWKZKLOH,IWKHNHUQHOLVFRPSLOHG
ZLWKFRGHZKLFKLVQWQHHGHGVXFKDVGHYLFHGULYHUVIRUGHYLFHVWKHPDFKLQHGRHVQWKDYH5$0ZLOOEH
SHUPDQHQWO\RFFXSLHGE\FRGHZKLFKLVQHYHUXVHG
,WLVDOVRWKHUHDVRQWKDWPDFKLQHVUHTXLUHDSSUR[LPDWHO\0HJRI5$0GHSHQGLQJRQWKH/LQX[YHUVLRQWR
UXQ/LQX[DWDOO
.HUQHO0RGXOHV
$OWKRXJKNHUQHOPHPRU\LVQHYHUWRXFKHGE\WKHSDJLQJV\VWHPLWKDVEHHQSRVVLEOHVLQFH/LQX[YHUVLRQ
WRDGGRUGHOHWHFKXQNVRINHUQHOPHPRU\SURYLGHGWKH\KDYHEHHQFRPSLOHGVHSDUDWHO\DVPRGXOHV7KH
FRPPDQGV
OLQX[ER[LQVPRGPRGXOH
IRULQVWDOOPRGXOHDQG
OLQX[ER[UPPRGPRGXOH
IRUUHPRYHPRGXOHGRFKDQJHWKHDPRXQWRI5$0RFFXSLHGE\WKHNHUQHO7RLQVSHFWPHPRU\WRILQGRXW
WKHDPRXQWRIPHPRU\DYDLODEOHWKH/LQX[FRPPDQG
OLQX[ER[IUHH
LVXVHIXO
$GGUHVV7UDQVODWLRQ
/LQX[XVHUPHPRU\DGGUHVVHVDUHYLUWXDODGGUHVVHVQRWDFWXDOSK\VLFDODGGUHVVHV/LQX[XVHVSDJLQJWR
WUDQVODWHYLUWXDODGGUHVVHVWR5$0DGGUHVVHV[SDJLQJREWDLQVLWVWUDQVODWLRQVIURPSDJHWDEOHVVHWXSE\
WKHRSHUDWLQJV\VWHP6LQFHWKHWUDQVODWLRQSURFHVVLVKDUGZLUHGLQWRWKHSURFHVVRU[SDJHWDEOHVPXVW
KDYHWKHWZRWLHUHGVWUXFWXUHVKRZQLQ
)LJXUH
)LJXUH[3DJH7DEOH6WUXFWXUH
7ZR7LHUHG[3DJH7DEOHV
(DFKWDEOHLQWKLVVWUXFWXUHKDVIRXUE\WHHQWULHV7KHVL]HRIHDFKWDEOHWKHUHIRUHLV.1RWHWKDWHDFK
WDEOHLVDOVRDSDJH
$SDJHWDEOHWDEOHOLVWVWKHORFDWLRQVRISDJHWDEOHV(DFKSDJHWDEOHOLVWVWKHORFDWLRQVRISDJHV
(DFKSDJHFRQWDLQVE\WHV7KHWRWDOPHPRU\UHIHUHQFHGE\DSDJHWDEOHWDEOHLVWKHUHIRUHî
î
î
î
*LJDE\WHV7KLVLVWKHVL]HRIRQHYLUWXDODGGUHVVVSDFH
$GGUHVV3DUVLQJ
$OOYLUWXDODGGUHVVHVDUHELWTXDQWLWLHV7KHVHELWVDUHEURNHQXSDVIROORZV
7KHVHELWVDUHDOORFDWHGDVVKRZQLQ
)LJXUH
7KHWZRWHQELWQXPEHUVDUHLQGLFHVLQWRWDEOHVZLWK
HQWULHV$WHQELWQXPEHULVDQXPEHUIURPWR7KHELWQXPEHULVDQLQGH[LQWRDSDJH$SDJH
KDV
E\WHV$ELWQXPEHULVDQXPEHUIURPWR,WSLFNVRXWRQHE\WHIURPDSDJH
)LJXUH9LUWXDO$GGUHVV7UDQVODWLRQ
7UDQVODWLRQ([DPSOH
6XSSRVHZHKDYHDYLUWXDODGGUHVVRI$%&'+7KLVELWDGGUHVVLVEURNHQLQWRLWVWKUHHSDUWV
7UDQVODWLRQEHJLQVDWWKHSDJHWDEOHWDEOH7KHILUVWWHQELWVSLFNRXWDQHQWU\IURPWKLVWDEOH,QRXUH[DPSOH
WKHVHELWVDUH + ,QGLFHVVWDUWDW]HUR7KHILUVWLWHPIHWFKHGLVWKH
WKIRXUE\WHHQWU\LQWKHSDJHWDEOHWDEOH,IDOOJRHVZHOOWKLVHQWU\FRQWDLQVDQDGGUHVV,Q
VHFWLRQ
LWLVVKRZQKRZWRH[WUDFWWKLVDGGUHVV7KHDGGUHVVLVWKHDGGUHVVRIDSDJHWDEOH7KHQH[WWHQELWV
HTXDO%+RUZKLFKLVWKHQXPEHURIDQHQWU\LQWKHSDJHWDEOH$JDLQLIDOOJRHVZHOOZHPD\
H[WUDFWDQDGGUHVVIURPWKLVHQWU\7KLVDGGUHVVLVWKH5$0DGGUHVVRIWKHSDJHRQZKLFKWKHLQIRUPDWLRQ
EHLQJVRXJKWLVORFDWHG6XSSRVHWKDWWKLVDGGUHVVKDSSHQVWREH+7KHODVWELWVRIWKHYLUWXDO
DGGUHVV 2&'+DUHWKHRIIVHWZLWKLQWKHSDJH7KHWUDQVODWHGDGGUHVVLVWKHQ
&'+
3DJH7DEOH(QWULHV
6XSSRVHDPHPRU\DGGUHVVLVHQFRXQWHUHGE\WKHSURFHVVRUIRUWKHILUVWWLPHLQDUHDGFRPPDQGVXFKDV
029$/>+@
$VMXVWH[SODLQHGLQ
VHFWLRQ
DWDEOHHQWU\IRUWKLVDGGUHVVLVREWDLQHG7KLVHQWU\LVIRXUE\WHVLQVL]H
,WVOHDVWVLJQLILFDQWELWLVFDOOHGWKHSUHVHQWELW,QWKHGLDJUDPVKRZQKHUHLWLVPDUNHG33IRUSDJH
SUHVHQW
:KHQWKHSUHVHQWELWLVVHWLWPHDQVWKDWWKHVRXJKWDIWHUSDJHLVORFDWHGLQ5$0,QWKLVFDVHWKHFDOOLQJ
SURJUDPLVOXFN\DQGWKHSDJHWDEOHHQWU\MXVWUHDGSURYLGHVWKHSK\VLFDODGGUHVVRIWKHSDJHFRQWDLQLQJWKH
UHTXLUHGE\WH6LQFHDOOSDJHIUDPHVLQSK\VLFDOPHPRU\DUHVWRUHGDWDGGUHVVHVZKRVHERWWRPELWVDUH
]HURWKHDGGUHVVFDQEHJLYHQXVLQJLWVXSSHUELWV7KDWLVZKDWWKHWRSELWVRIWKHSDJHWDEOHHQWU\
SURYLGH2QFHWKHDGGUHVVRIWKHSDJHLVGHWHUPLQHGWKHPHPRU\UHDGLVFRPSOHWHGDVVKRZQLQ
VHFWLRQ
0HPRU\3URWHFWLRQ
:KHQWKHSUHVHQWELWLVQRWVHWWKHUHDUHWZRSRVVLELOLWLHV
,WPD\PHDQWKDWWKHSDJHFRQWDLQLQJWKHVRXJKWDIWHUE\WHLVORFDWHGRQGLVN,QWKLVFDVHD3DJH)DXOW
UHVXOWV
,WPD\DOVRPHDQWKDWWKHDGGUHVVLVQRWYDOLGDWDOO,QWKLVFDVHD6HJPHQWDWLRQ)DXOWUHVXOWV
7KHILUVWSRVVLELOLW\LVQRVXUSULVH7KHLGHDRISDJLQJLVWRSXWVRPHPHPRU\SDJHVRXWRQWRWKHGLVN:KHQ
DSURJUDPWULHVWRDFFHVVWKHPWKLVLVRIFRXUVHDSUREOHP3UREOHPVOLNHWKLVDUHGHDOWZLWKLQ
FKDSWHU
VHFWLRQ
7KHVHFRQGSRVVLELOLW\LVVRPHZKDWIRUHLJQWRWKHLGHDRISDJLQJDVDPHPRU\HFRQRPL]LQJIHDWXUH%XWLW
EULQJVRXWH[DFWO\ZKDWZHPHDQZKHQZHVD\WKDW/LQX[XVHVSDJLQJWRSURWHFWPHPRU\%HFDXVHWKH
SDJHWDEOHVDUHXQGHUWKHFRQWURORIWKHRSHUDWLQJV\VWHPLWJLYHVWKHRSHUDWLQJV\VWHPDQRSSRUWXQLW\WR
LQWHUFHSWHYHU\VLQJOHPHPRU\UHTXHVW7KLVLVKRZ/LQX[NHHSVSRWHQWLDOO\RYHUZKHOPLQJGHPDQGVIRU
PHPRU\XQGHUFRQWURO2QO\DGGUHVVHVRQSDJHVZKLFKLWKDVDOORFDWHGWRSURFHVVHVZLOOKDYHWKHSUHVHQWELW
LQWKHSDJHWDEOHVVHW$Q\UHIHUHQFHWRDQXQDOORFDWHGSDJHUHVXOWVLQWKHGUHDGHG6HJPHQWDWLRQ)DXOWHUURU
PHVVDJH
7KH&55HJLVWHU
7UDQVODWLRQEHJLQVDWWKHSDJHWDEOHWDEOH(DFKWDVNKDVLWVRZQSDJHWDEOHWDEOH7KHSK\VLFDODGGUHVVRIWKH
SDJHWDEOHWDEOHLVVWRUHGLQDUHJLVWHUFDOOHG&5&5VWDQGVIRUFRQWUROUHJLVWHU7KHFRQWUROUHJLVWHUVZHUH
DGGHGWRWKH[SURFHVVRUVVWDUWLQJZLWKWKH)RUPRUHGLVFXVVLRQRIWKHVHUHJLVWHUVVHH
FKDSWHU
VHFWLRQ
&5LVUHORDGHGDXWRPDWLFDOO\HYHU\WLPHWKH[SURFHVVRUFKDQJHVIURPRQHWDVNWRDQRWKHU7KLVLVZKDW
PDNHVLWSRVVLEOHIRUHDFKWDVNWRKDYHLWVRZQVHWRIYLUWXDODGGUHVVHV7KHNHUQHOPHPRU\LQWKHODVWRQH
IRXUWKRIWKHDGGUHVVVSDFHVHH
VHFWLRQ
LVWKHUHEHFDXVH/LQX[SXWVLWWKHUH7KLVDGGUHVVVSDFHLV
VKDUHGEHFDXVHWKHSDJHWDEOHVZKLFKWUDQVODWHWKHVHDGGUHVVHVDUHVKDUHG7KHODVWRQHTXDUWHURIHYHU\SDJH
WDEOHWDEOHRQWKHV\VWHPLVLGHQWLFDO
.HUQHO0HPRU\$FFHVV
7KHIDFWWKDWNHUQHODGGUHVVHVDUHVWRUHGLQDOOWKHSDJHWDEOHVRQWKHV\VWHPPLJKWOHDGXVWREHOLHYHWKDW
NHUQHOPHPRU\FDQEHXVHGE\DOOSURFHVVHVRQWKHV\VWHP,QDZD\WKLVLVWUXH,Q
FKDSWHU
VHFWLRQ
ZH
ZLOOVHHKRZXVHUFRGHPD\LQYRNHV\VWHPFDOOVWRJHWDFFHVVWRNHUQHOPHPRU\+RZHYHUXVHUFRGHE\
LWVHOIGRHVQRWKDYHWKLVNLQGRIDFFHVV,WLVEORFNHGE\WKH8B6XVHUVXSHUYLVRUELWRIWKHWDEOHHQWULHVIRU
NHUQHOPHPRU\6HH
)LJXUH
)LJXUH3DJH7DEOH7DEOH(QWU\
7KLVELWLILWLVGRHVQRWEORFNDFFHVV,ILWLVLWLVFKHFNHGDJDLQVWDWZRELWSULYLOHJHYDOXHVWRUHGLQD
VSHFLDOUHJLVWHUFDOOHGWKH&3/UHJLVWHU7KLVUHJLVWHUDQGWKHSULYLOHJHOHYHOVVWRUHGLQLWDUHGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
$FFHVVLVEORFNHGLIWKHYDOXHLQWKH&3/UHJLVWHULV:KHQXVHUSURJUDPVDUH
UXQQLQJWKH&3/UHJLVWHUKROGV7KLVLVWKHEDVLFSURWHFWLRQWKDWNHUQHOPHPRU\KDVDJDLQVWDFFHVVE\XVHU
SURJUDPV
3DJLQJ3DJH7DEOHV
(QWULHVLQWKHSDJHWDEOHWDEOHORRNMXVWOLNHHQWULHVLQWKHSDJHWDEOH7KHSUHVHQWELWLQHDFKPHDQVWKHVDPH
WKLQJ,ILWLVFOHDUHGLWPHDQVWKDWWKHVRXJKWDIWHULWHPLVQRWSUHVHQW-XVWDVDSDJHRIVRPHSURFHVVV
PHPRU\FDQEHSDJHGRXWWRGLVNVRFDQDSDJHWDEOH-XVWDV.RIDGGUHVVVSDFHLQDSDJHFDQEHPDUNHG
DVXQDOORFDWHGVRFDQWKH0HJRIDGGUHVVVSDFHXQGHUDSDJHWDEOHEHPDUNHGDVXQDOORFDWHG
$PLVVLQJSDJHWDEOHFDXVHVDSDJHIDXOWRUDVHJPHQWDWLRQIDXOWMXVWOLNHDPLVVLQJSDJHRIXVHUPHPRU\
3URJUDP6HJPHQWV
&RQVLGHU
3URJUDP
:KHQWKLVSURJUDPLVUXQWKHOLQHODEHOOHG
$%&
ZLSHVLWVHOIRXW7KLVSURJUDPLVDQ
H[DPSOHRIVHOIPRGLI\LQJFRGH2QFHXSRQDWLPHLQWKHEDGROGGD\VVHOIPRGLI\LQJFRGHZDVVRPHWLPHV
XVHGWRVDYHDIHZE\WHVRIPHPRU\VSDFH7RGD\VHOIPRGLI\LQJFRGHLVQRWFRQVLGHUHGJRRGSURJUDPPLQJ
7RP6KDQOH\SXWLWPRUHEOXQWO\ZKHQKHZURWHWKDWSURJUDPPHUVZKRFUHDWHVHOIPRGLI\LQJFRGHVKRXOGEH
FDVWLQWRWKHSLWV2UGLQDULO\WKHRQO\UHDVRQWKDWDUXQQLQJSURJUDPLVPRGLILHGLVWKDWVRPHWKLQJKDV
JRQHZURQJ5XQQLQJSURJUDPVVKRXOGQRWJHWPRGLILHG
3URJUDP
3URJUDPZKLFKVHOIGHVWUXFWV
,1$/>@
$%&029>$%&@$/
5(7
1RQ:ULWHDEOH0HPRU\
8QL[UHTXLUHVWKDWUXQQLQJSURJUDPVEHSURWHFWHGIURPDFFLGHQWDOPRGLILFDWLRQE\EHLQJVWRUHGLQPHPRU\
ZKLFKLVQRWZULWHDEOH/LQX[XVHVELWRIWKHSDJHWDEOHHQWU\WRLPSOHPHQWWKLVUHTXLUHPHQW7KLVLVWKH
ELWPDUNHG:B5IRU:ULWH5HDGLQWKHGLDJUDP,IWKLVELWLVFOHDUHGWKHLQGH[HGSDJHLVQRWZULWHDEOH
:KHQWKHSURFHVVRUHQFRXQWHUVDZULWHFRPPDQGVXFKDV
029>+@$/
WKLVELWLVFKHFNHG)LUVWWKHSDJHWDEOHHQWU\IRUWKHDGGUHVV+LVIHWFKHG$VVXPLQJWKHSUHVHQWELW
LQWKHHQWU\IRUWKLVSDJHLVVHWWKHQEHFDXVHWKLVLQVWUXFWLRQLVDZULWHFRPPDQGELWWKHZULWHRUUHDGELW
LVFKHFNHG,IWKLVELWLVQRWVHWWKHSURFHVVRUZLOOQRWH[HFXWHWKHLQVWUXFWLRQDQG/LQX[LVVXHVD
6HJPHQWDWLRQ)DXOWHUURUPHVVDJH)DXOWVDUHGHVFULEHGLQJUHDWHUGHWDLOLQ
FKDSWHU
VHFWLRQ
8QL[SURWHFWVFRGHE\PDUNLQJLWDVQRQZULWHDEOH
:ULWHDEOH0HPRU\
'DWDVSDFHXVHGIRUFRPSXWDWLRQQHHGVWREHLQPHPRU\ZKLFKLVZULWHDEOH&RQVLGHU
3URJUDP
7KH
ODEHO
;<=
MXVWPDUNVVWRUHGGDWD7KHFRGHLVSHUIHFWO\
3URJUDP
7LQ\1$60SURJUDPZKLFKFUDVKHVWU\LQJWRLQFUHPHQWDE\WHRIVWRUHGGDWD
JOREDOPDLQ
PDLQ029$/>;<=@
,1&$/
029>;<=@$/
5(7
;<=GE
UHDVRQDEOH%XWEHFDXVHWKHHQWLUHSURJUDPLVVWRUHGLQQRQZULWHDEOHPHPRU\DVHJPHQWDWLRQIDXOWRFFXUV
ZKHQWKHSURFHVVRUDWWHPSWVWRH[HFXWHWKH
029>;<=@$/
LQVWUXFWLRQ7KLVLVDSUREOHP
z
2QWKHRQHKDQG/LQX[SURWHFWVWKHFRGHLQ
3URJUDP
E\VWRULQJLWRQSDJHVZKLFKDUHQRW
ZULWHDEOH
z
2QWKHRWKHUKDQGWKHODEHO
;<=
LQ
3URJUDP
PDUNVZULWHDEOHVSDFH,WWKHUHIRUHFDQQRWEHVWRUHGRQ
WKHVDPHSDJHDVWKHH[HFXWDEOHOLQHVRIWKHSURJUDP
%HFDXVHZULWHSURWHFWLRQIRUFRGHLVLPSOHPHQWHGXVLQJSDJHWDEOHHQWULHVWKHQDWOHDVWWZRGLIIHUHQWSDJHV
DUHQHHGHGIRU
3URJUDP
RQHZLWKZULWHSURWHFWLRQDQGRQHZLWKRXWLW1RSDJHFDQEHVKDUHGE\ZULWH
SURWHFWHGFRGHDQGZULWHDEOHGDWDVSDFH
7H[WDQG'DWD6HJPHQWV
3URJUDPVKDYHWREHEURNHQXS7KHGLIIHUHQWSLHFHVRIDQH[HFXWDEOHILOHDUHFDOOHGVHJPHQWV
7KHPDFKLQHFRGHFRXOGEHEURNHQXSZKHQLWZDVORDGHGEXWWKLVZRXOGSODFHXQUHDVRQDEOHGHPDQGVRQ
WKHORDGLQJSURJUDP,QRUGHUWKDWWKHVHJPHQWVGRQRWKDYHWREHFUHDWHGDWORDGWLPHWKHH[HFXWDEOHILOHLV
GLYLGHGLQWRVHJPHQWV(YHQWXDOO\ZHZLOOGHVFULEHILYHGLIIHUHQWNLQGVRIVHJPHQWV6RIDUZHKDYHPDGHD
FDVHIRUWZR
z
7H[WVHJPHQWV([HFXWDEOHFRGHQHHGVDVHJPHQWZKLFKLVVWRUHGLQSDJHVZKRVH:ULWH5HDGELWLV
FOHDUHG,WLVFDOOHGWKHWH[WVHJPHQW
z
'DWDVHJPHQWV6RPHSURJUDPVQHHGVSDFHLQWKHH[HFXWDEOHILOHZKHUHGDWDFDQEHZULWWHQ,WLV
VWRUHGLQSDJHVZKRVH:ULWH5HDGELWLVVHW,WLVFDOOHGWKHGDWDVHJPHQW
7H[WDQG'DWD6HFWLRQV
-XVWDVDQH[HFXWDEOHILOHKDVVHJPHQWVDQREMHFWFRGHILOHKDVVHFWLRQV2QHRIWKHOLQNHUVMREVLVWRSXW
WRJHWKHUDWH[WVHJPHQWIURPWKHWH[WVHFWLRQVRIDOOWKHREMHFWFRGHILOHVEHLQJOLQNHGDGDWDVHJPHQWIURP
DOOWKHGDWDVHFWLRQVHWF/LQNHUVKDYHDORWRIZRUNWRGR
:KRFUHDWHVWKHVHFWLRQVLQWKHREMHFWFRGHILOHV"2EMHFWFRGHILOHVDUHFUHDWHGE\DVVHPEOHUV
6HFWLRQ'HILQLWLRQ'LUHFWLYHV
$VVHPEOHUVGRQRWVHSDUDWHFRGHLQWRWH[WDQGGDWDVHFWLRQVDFWLQJRQWKHLURZQ$WOHDVWPRVWDVVHPEOHUV
DUHQRWWKDWVPDUW7KHSURJUDPPHUQHHGVWRKHOSRXWE\XVLQJGLUHFWLYHVWKDWVSHFLI\ZKLFKFRGHJRHVLQWR
ZKLFKVHFWLRQ7KHIROORZLQJ1$60GLUHFWLYHFDQEHXVHGWRLQLWLDWHVHFWLRQV
VHFWLRQWH[W
VSHFLILHVDWH[WVHFWLRQ6LPLODUO\
VHFWLRQGDWD
LQLWLDWHVDGDWDVHFWLRQ
:LWKWKHVHGLUHFWLYHVZHFDQGLUHFW1$60WRSURGXFHD
R
ILOHZLWKERWKWH[WDQGGDWDVHFWLRQV$GGLQJ
WKHVHGLUHFWLYHVWR
3URJUDP
JLYHVXV
3URJUDP
ZKLFKZLOOFRPSLOHDQGUXQZLWKRXWFUDVKLQJ
3URJUDP
7LQ\SURJUDPZKLFKLQFUHPHQWVDE\WHRIVWRUHGGDWD
JOREDOPDLQ
VHFWLRQWH[W
PDLQ029$/>;<=@
,1&$/
029>;<=@$/
5(7
VHFWLRQGDWD
;<=GE
6HJPHQWVLQ&&RGH
3URJUDP
FDQEHXVHGWRGHWHUPLQHWKHDGGUHVVHVRISDJHVDOORFDWHGWRLWVHOI
&DOOLQJ&IURP$VVHPEOHU
&DOOLQJIXQFWLRQVLQYROYHVXVLQJWKHVWDFN:KHQIXQFWLRQVDUHFDOOHGXVLQJDVVHPEOHULWLVSRVVLEOHWRVHH
H[DFWO\KRZWKHVWDFNLVXVHGLQDIXQFWLRQFDOO2QFH\RXNQRZKRZWRXVHWKHVWDFNWRFDOODIXQFWLRQ\RX
FDQFDOO&OLEUDU\IXQFWLRQVWRJHWDFWXDOLQSXWDQGRXWSXWIRUDVVHPEOHUSURJUDPVZKLFKUXQXQGHU/LQX[
,QRUGHUWRFDOO
SULQWI
DQG
VFDQI
XVLQJDVVHPEOHULWLVQHFHVVDU\WRSXVKVWULQJVRQWRWKHVWDFN7KLVLV
EHFDXVHWKHILUVWDUJXPHQWRIHDFKRIWKHVHIXQFWLRQVLVDOZD\VDVWULQJ7KHGEDVVHPEOHUGLUHFWLYH
LQWURGXFHGLQ
FKDSWHU
VHFWLRQ
FDQEHXVHGWRVWRUHVWULQJVDVZHOODVQXPEHUV)RUH[DPSOH
GE+HOORZRUOG?Q?[
FDQEHXVHGWRVWRUHDVWULQJ,IWKHORFDWLRQLVODEHOOHGWKHQWKHODEHOPD\EHXVHGWRSXVKWKHDGGUHVVRIWKH
VWRUHGVWULQJ,Q(GOLQDVWKHDOORZDEOHVWULQJVDUHH[DFWO\OLNHWKRVHDOORZHGLQWKH&ODQJXDJHH[FHSWWKDW
QXOOWHUPLQDWLRQPXVWEHH[SOLFLWO\HQFRGHGLILWLVGHVLUHG7KH&ODQJXDJHKH[HVFDSHVHTXHQFH
?[
PD\EH
XVHGWRLQFOXGHDQXOORUDQ\RWKHUFKDUDFWHULQWRWKHVWULQJ
3URJUDP
FKDUD $
PDLQ
^FKDUQ
LQWLW
Q D
SULQWI(QWHUDSRLQWHUGLVSODFHPHQWLQKH[
VFDQI[L
SULQWI3RLQWHUYDOXHLQKH[ [?QQL
SULQWI5HDGZULWHRUVNLS"(QWHURU
VFDQIGW
LIW
SULQWI&RQWHQWVWKHUH [QL
HOVHLIW
QL <
SULQWI?Q
`
,Q1$60QRQ$6&,,FKDUDFWHUVDUHFRGHGRXWVLGHWKHVWULQJXVLQJFRPPDV
GE+HOORZRUOG$+
,QRUGHUWRFDOO
VFDQI
IURPDVVHPEOHULWLVQHFHVVDU\WRKDYHDODEHOLQDGDWDVHJPHQW7KH
VFDQI
IXQFWLRQWDNHVXVHULQSXWDQGZULWHVLWLQWRPHPRU\7KLVPHPRU\FDQQRWEHLQWKHWH[WVHJPHQW,WPXVWEH
LQDGDWDVHJPHQW%HFDXVH
SULQWI
DQG
VFDQI
RFFXUDVUHIHUHQFHVWRXQNQRZQORFDWLRQV1$60UHTXLUHV
WKHXVHRIDQ
H[WHUQ
GLUHFWLYH1$60ZLOOSURGXFHDQHUURUPHVVDJHLIDODEHOLVUHIHUUHGWRZKLFKGRHVQRW
RFFXULQWKHODEHOILHOGRIDOLQHLQWKHSURJUDPEHLQJDVVHPEOHG
3URJUDP
VKRZVKRZWRFDOO
SULQWI
DQG
VFDQI
IURPD1$60SURJUDP$ZRUGRIZDUQLQJLVLQRUGHUUHJDUGLQJUHJLVWHUXVDJH$OWKRXJKZH
PLJKWH[SHFW&OLEUDU\IXQFWLRQVVXFKDV
SULQWI
DQG
VFDQI
WRVDYHUHJLVWHUVRQWKHVWDFNEHIRUHXVLQJ
WKHPWKH\GRQWQHFHVVDULO\9DOXHVVWRUHGLQUHJLVWHUVEHIRUHDFDOOWR
SULQWI
QHHGQRWEHWKHUHDIWHUWKLV
FDOO7RSUHVHUYHYDOXHVIURPGHVWUXFWLRQE\DOLEUDU\IXQFWLRQFDOOWKHSURJUDPPHUPXVWDVVXPHWKH
UHVSRQVLELOLW\RIVDYLQJWKHPRQWKHVWDFN7KHOLQHVODEHOHG
$%&%&'
DQG
&'(
VWRUHVWULQJV
;<=
LVORFDWHG
LQWKHGDWDVHJPHQW&RQVHTXHQWO\WKH
029($;>;<=@
LQVWUXFWLRQFDQH[HFXWHZLWKRXWFDXVLQJDPHPRU\
YLRODWLRQ
2WKHU'DWD6HJPHQWV
/LQX[XVHUPHPRU\LVGDWDVSDFHWKDWLVLQWHUQDOWRWKHSURJUDPLWVHOI7KHUHDUHWKUHHNLQGVRIGDWDVSDFH
LQWHUQDOWRDSURJUDP
3URJUDP
7KLVSURJUDPFDOFXODWHV\ [
VHFWLRQWH[W
JOREDOPDLQ
H[WHUQSULQWI
H[WHUQVFDQI
PDLQ386+$%&
&$//SULQWI
$''(63
386+;<=
386+%&'
&$//VFDQI
$''(63
029($;>;<=@
$''($;($;
,1&($;
386+($;
386+&'(
&$//SULQWI
$''(63
5(7
$%&GE(QWHUDQXPEHU$+
%&'GEG?[$+
&'(GE<RXJHWG?[$+
VHFWLRQGDWD
;<=GE
,QLWLDOL]HGGDWDVSDFH,WLVVSDFHWKDWLVLQWHUQDOWRWKHH[HFXWDEOHILOHHYHQZKHQWKHILOHLVO\LQJLGOH
RXWRQWKHGLVN
8QLQLWLDOL]HGGDWDVSDFH,WLVVSDFHWKDWLVDGGHGWRWKHSURJUDPZKHQWKHSURJUDPLVORDGHG
'\QDPLFDOO\$OORFDWHG0HPRU\,WLVVSDFHWKDWLVDGGHGWRWKHSURJUDPZKHQLWLVH[HFXWLQJ
,QLWLDOL]HG'DWD6SDFH
,Q
FKDSWHU
VHFWLRQ
WKHXVHRIWKHGEGLUHFWLYHZDVGLVFXVVHGLQFRQQHFWLRQZLWKWKHLQLWLDOL]DWLRQRI
GDWD7KHIDFWWKDWWKLVGDWDQHHGVWREHVWRUHGSHUPDQHQWO\UHTXLUHVWKDWLWEHDSDUWRIWKHH[HFXWDEOHILOH
,IWKHVSDFHZKLFKLVRFFXSLHGE\WKLVGDWDLVHYHUZULWWHQWRE\WKHSURJUDPWKHQLWPXVWEHLQDGDWD
VHJPHQW7KH
VHFWLRQGDWD
GLUHFWLYHLVWKHULJKWWRROIRUWKLVMRE
6RPHWLPHVVWRUHGGDWDLVQHYHURYHUZULWWHQ)RUH[DPSOHFRQWUROVWULQJVVXFKDV
+HOORZRUOG
DUH
HVVHQWLDOO\QHYHUZULWWHQRQ7KLVNLQGRIGDWDPD\MXVWDVZHOOEHVWRUHGLQZULWHSURWHFWHGSDJHV,QWKHJQX
DVVHPEOHUWKHUHLVDVSHFLDOVHFWLRQODEHOIRUVHFWLRQVRIWKLVNLQG
URGDWD
8QLQLWLDOL]HG'DWD6SDFH
6SDFHZKLFKLVQHHGHGE\WKHUXQQLQJSURJUDPEXWZKLFKGRHVQRWFRQWDLQGDWDLQLWLDOO\PD\EHDGGHGWR
WKHSURJUDPZKHQLWLVORDGHG$QDUUD\GHFODUHGE\
LQW[>@
PD\ZHOORFFXS\E\WHVRIVSDFH3XWWLQJVXFKDQDUUD\LQWRDQH[HFXWDEOHILOHZRXOGEHDZDVWHRI
GLVNVSDFH7RVHWWKHVSDFHDVLGHDWORDGWLPHWKH
EVV
VHFWLRQODEHOLVXVHG
'\QDPLFDOO\$OORFDWHG0HPRU\
3URJUDPVJHWPHPRU\DWUXQWLPHXVLQJWKHV\VWHPFDOO
PDOORF
6\VWHPFDOOVDUHGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
,23URWHFWLRQ
,Q
VHFWLRQ
ZHKDYHGLVFXVVHGWKHXVHRISDJLQJDVDZD\RISURWHFWLQJPHPRU\IURPXQUHJXODWHGXVHU
DFFHVV:HKDYHDOVRQRWHGWKDW,2DGGUHVVLQJLVXQSURFHVVHG,WGRHVQWXVHSDJLQJVHJPHQWDWLRQRUDQ\
RWKHUNLQGRIWDPSHULQJZLWKWKHDGGUHVVHVLQWKHEUDFNHWV%XWWKHUHLVVXSSRUWIRU,2SURWHFWLRQLQWKHî
DUFKLWHFWXUHDQG/LQX[GRHVXVHLW
([HFXWDEOH)LOHVLQ(/))RUPDW
,Q
FKDSWHU
VHFWLRQ
ZHQRWHGWKDWEHFDXVHSURJUDPVFRQWDLQDEVROXWHDGGUHVVHVZKLFKDUHQRW
GHWHUPLQHGXQWLOORDGLQJWLPHH[HFXWDEOHILOHVFRQWDLQUHORFDWLRQWDEOHVZKLFKOLVWWKHVHORFDWLRQVLQWKHILOH
7KHVHWDEOHVQHHGWRKDYHVRPHVSHFLILHGIRUPDW
,Q
VHFWLRQ
ZHQRWHGWKDWVLQFHSURJUDPVKDYHVHJPHQWVZKLFKDUHVDYHGRQVHSDUDWHSDJHVGHSHQGLQJRQ
ZKHWKHUWKHVHJPHQWVDUHZULWHDEOHRUQRWWKHORFDWLRQRIWKHVHVHJPHQWVZLWKLQWKHILOHPXVWEHNQRZQWR
WKHRSHUDWLQJV\VWHP,I/LQX[GLGQRWKDYHWKLVLQIRUPDWLRQLWZRXOGQRWEHDEOHWRGHWHUPLQHZKLFKSDUWV
RIWKHILOHWRVWRUHLQZULWHDEOHSDJHVRIPHPRU\DQGZKLFKLQUHDGRQO\
)RUDOOWKHVHUHDVRQVH[HFXWDEOHILOHVPXVWKDYHVRPHGHILQLWHIRUPDW7KHIRUPDWXVHGE\/LQX[VWDUWLQJ
ZLWKYHUVLRQLVFDOOHG(/)([HFXWDEOHDQG/LQNLQJ)RUPDW
7ZRRWKHU8QL[H[HFXWDEOHILOHIRUPDWVDUH&2))&RPPRQ2EMHFW)LOH)RUPDWDQGDRXW$OWKRXJKDOO
8QL[V\VWHPVXVH
DRXW
DVWKHQDPHRIWKHH[HFXWDEOHILOHSURGXFHGE\WKH&FRPSLOHULWLVDOVRWKHQDPH
RIRQHSDUWLFXODUIRUPDWIRUH[HFXWDEOHILOHVDQGREMHFWFRGHILOHV$WRQHWLPHDOOYHUVLRQVRI8QL[XVHGWKH
DRXWIRUPDW1RZPRVWYHUVLRQVXVH(/)7KHERRN8QGHUVWDQGLQJDQG8VLQJ&2))SUHVHQWVDWKRURXJK
GHVFULSWLRQRIERWK&2))DQGDRXW
)LJXUH±
VKRZVWKHOD\RXWRIDQH[HFXWDEOHILOHLQ(/)IRUPDW
)LJXUH(/))RUPDW
7KH(/)+HDGHU
7KH(/)KHDGHULGHQWLILHVWKHILOHDVDQ(/)ILOHDQGVSHFLILHVZKDWNLQGRI(/)ILOHLWLV,WDOVRVSHFLILHV
WKHVL]HDQGORFDWLRQRIWKHSURJUDPKHDGHUWDEOHDQGWKHVHFWLRQKHDGHUWDEOH
z
7KHILUVWHQWU\LVDQLGHQWLILHUVWULQJFRQWDLQLQJ(/)
z
7KHVHFRQGHQWU\LVDQXPEHUZKLFKLVLIWKHILOHLVDQREMHFWILOHLIWKHILOHLVDQH[HFXWDEOHILOH
LIWKHILOHLVDVKDUHGREMHFWILOHDQGLILWLVDFRUHILOH6KDUHGREMHFWILOHVDUHGLVFXVVHGLQ
FKDSWHU
&RUHILOHVDUHSURGXFHGZKHQHYHUDSURJUDPFUDVKHV7KH\DUHFUHDWHGIRUGHEXJJLQJSXUSRVHV
z
7KHWKLUGHQWU\QXPEHUVSHFLILHVWKHPDFKLQHDUFKLWHFWXUH7KHQXPEHUVWDQGVIRUWKH[
DUFKLWHFWXUH
z
7KHUHDUHPRUHHQWULHVLQWKH(/)KHDGHUILOHLQFOXGLQJHQWULHVIRUWKHVL]HDQGORFDWLRQRIWKH
SURJUDPKHDGHUWDEOHDQGWKHVHFWLRQKHDGHUWDEOH
7KH3URJUDP+HDGHU7DEOH
7KHSURJUDPKHDGHUWDEOHKDVRQHHQWU\IRUHDFKVHJPHQW(DFKHQWU\LQWKHSURJUDPKHDGHUWDEOHFRQWDLQV
HLJKWLWHPVRILQIRUPDWLRQ
7\SH7KHW\SHLVLIWKHVHJPHQWLVWREHORDGHGZKHQWKHILOHLVH[HFXWHG2WKHUW\SHVDUHQRWORDGHG
LQWRPHPRU\
)LOH2IIVHW7KLVRIIVHWJLYHVWKHORFDWLRQRIWKHVHJPHQWZLWKLQWKHILOH/LNHDOORIIVHWVLWLVWKH
QXPEHURIE\WHVIURPWKHEHJLQQLQJ
9LUWXDO$GGUHVV7KLVLVWKHDGGUHVVZKHUHWKHILUVWE\WHRIWKHVHJPHQWLVWREHORDGHG
3K\VLFDO$GGUHVV)RU[/LQX[V\VWHPVWKLVHQWU\LVDPLVQRPHU,WLVLJQRUHG
)LOH6L]H7KLVLVWKHQXPEHURIE\WHVLQWKHVHJPHQWEHIRUHLWLVORDGHG
0HPRU\6L]H7KLVLVWKHQXPEHURIE\WHVLQWKHVHJPHQWDIWHULWLVORDGHG
3HUPLVVLRQV7KLVFRGHFRQWDLQVWKHUHDGZULWHH[HFXWHSHUPLVVLRQV
$OLJQPHQW7KHVHJPHQWPXVWEHJLQRQDPXOWLSOHRIWKLVHQWU\
$VDQH[DPSOH
7DEOH
OLVWVWKH3URJUDP+HDGHUWDEOHIRU
FKPRG
/LNHPRVW8QL[FRPPDQGVWKH
FKPRG
FRPPDQGLVDFWXDOO\DQH[HFXWDEOHILOH2QPRVWV\VWHPVLWLVORFDWHGLQ
ELQ
7DEOH
ZDVSURGXFHGE\
UXQQLQJWKHRESURJUDPRQWKLVILOH
(/)6HJPHQWV
,Q/LQX[DQH[HFXWDEOHILOHW\SLFDOO\KDVILYHVHJPHQWV6HJPHQWLVDOZD\VWKH3URJUDP+HDGHUWDEOH
1RWHWKDWLQ
7DEOH
WKHYDOXHRIWKH7\SHILHOGIRU6HJPHQWLVIRUSURJUDPKHDGHU
6HJPHQWVKDYHUHDGZULWHH[HFXWHSHUPLVVLRQVDVVRFLDWHGZLWKWKHPMXVWDVILOHVLQ8QL[GR7KHVHYHQWK
LWHPLQHDFKHQWU\RIWKH3URJUDP+HDGHUWDEOHLVWKHSHUPLVVLRQFRGHIRUWKDWHQWU\,WLVHDVLO\XQGHUVWRRG
ZKHQZULWWHQDVDELQDU\QXPEHU)RUH[DPSOHDSHUPLVVLRQFRGHRIPHDQVSHUPLVVLRQWRUHDGDQGZULWH
EXWQRWWRH[HFXWH
7DEOH3URJUDP+HDGHU7DEOHIRU
FKPRG
G3URJUDP+HDGHU7DEOH
1RWHWKDWWZRRIWKHVHJPHQWVDUHORDGDEOH7KHVHDUHWKHFRGHDQGGDWDVHJPHQWV
$OWKRXJKWKHOLQNHUFRPELQHVVHFWLRQVLQWRVHJPHQWVWKHUHDUHVHFWLRQVZKLFKDUHQRWSDUWRIDQ\VHJPHQW
7KH6HFWLRQ+HDGHUWDEOHOLVWVDQGGHVFULEHVWKHVHVHFWLRQV7KHVHSDUWVRIDQH[HFXWDEOHILOHDOVRRFFXULQDQ
REMHFWILOHDQGDUHGLVFXVVHGLQ
VHFWLRQ
&RQVLGHUWKHIROORZLQJ&SURJUDP
3URJUDP
SULQWVRXWSRLQWHUV3RLQWHUVDUHMXVWDGGUHVVHV%HFDXVH&LV
DUHODWLYHO\ORZOHYHOODQJXDJHZHZRXOGH[SHFWWKHVHSRLQWHUVWREHWKHVDPHDVWKRVHRFFXUULQJLQWKH
PDFKLQHFRGH
2EMHFW)LOHVLQ(/))RUPDW
0RVWSURJUDPVDUHQRWZULWWHQFRPSOHWHO\IURPVFUDWFK7KH\UHO\RQSURJUDPVZKLFKKDYHDOUHDG\EHHQ
ZULWWHQDQGDUHXVHGRYHUDQGRYHUDJDLQVXFKDV
SULQWI
)LOHVZKLFKQHHGRWKHUFRGHLQRUGHUWRUXQDUH
FDOOHGREMHFWFRGHILOHV,WLVWKHMRERIWKHOLQNHUWRFRPELQHREMHFWFRGHIURPGLIIHUHQWILOHVLQWRDQ
H[HFXWDEOHILOH7KHFRGHIRU
SULQWI
IRUH[DPSOHLVORFDWHGLQ
OLEOLEFVR
7\SLFDOO\WKH
SURJUDPPHUFUHDWHVRQHRUWZRRIWKHVHREMHFWFRGHILOHVXVLQJJFFRUDQDVVHPEOHUDQGWKHUHVWDUH
UHWULHYHGE\WKHOLQNHUIURPVWDQGDUGOLEUDULHVVWRUHGRQWKHV\VWHP7KLVSURFHVVLVQRWREYLRXVIURPWKH
FRPPDQGOLQHVLQFHWKHOLQNHULVFDOOHGE\JFF
,WLVLPSRUWDQWWRUHDOL]HWKDWWKHFUHDWLRQRIDQREMHFWFRGHILOHLVWKHPDLQSXUSRVHRIDQDVVHPEOHU,Q
VHFWLRQUHIVGHIGLUDVVHPEOHUFRPPDQGVIRUVKDSLQJREMHFWILOHVZLOOEHGLVFXVVHG%XWILUVWREMHFWFRGHILOHV
WKHPVHOYHVQHHGWREHGHVFULEHG-XVWDVWKHIRUPDWRIDQH[HFXWDEOHILOHLVSUHVFULEHGE\(/)VRLVWKH
IRUPDWRIDQREMHFWFRGHILOH
)LJXUH±
VKRZVWKHVWUXFWXUHRIDQ(/)REMHFWFRGHILOH7KH(/)+HDGHU
LQDQREMHFWILOHLVWKHVDPHDVWKH(/)KHDGHULQDQ
)LJXUH(/)2EMHFW)LOH)RUPDW
G3URJUDP+HDGHU7DEOH
1XP 6HJ7\SH
)LOH2IIVW
9LUWXDO$GGUHVV
3K\VLFDO$GGUHVV
)LOH6L]H 0HP6L]H
3HUP $OLJQPHQW
D
D
G
G
G
G
G
G
DG
DG
F
IF
GF
DGF
DGF
7\SH ORDGDEOH G\QDPLFLQIR LQWHUSUHWHU QRWH SURJUDPKHDGHU
U
Z
[
3URJUDP
LQWD [E [
LQWF [G [
PDLQ
^
6WRUHQXPEHUVZKLFKZLOOEHYHU\HDV\WRSLFNRXW
IURPWKHPDFKLQHFRGHRIWKHFRPSLOHGSURJUDP
D [OOOOOOOO
E [
F [
G [
SULQWI9DULDEOHV$GGUHVVHV?Q
SULQWID[?QD
SULQWIE[?QE
SULQWIF[?QF
SULQWIG[?QG
[PHDQVWRXVHKH[DGHFLPDORXWSXW
SULQWI?Q
`
H[HFXWDEOHILOH
6HFWLRQ+HDGHU7DEOH
7KH6HFWLRQ+HDGHUWDEOHOLVWVDOOWKHVHFWLRQVLQWKHREMHFWILOH7KHWDEOHVKRZQLQ
7DEOH
ZDVSURGXFHG
E\UXQQLQJ
RE
RQWKH
R
ILOHIRU
3URJUDP
7KH)ODJVLWHPFRQWDLQVDWWULEXWHELWVZKLFKDUHVRPHZKDW
OLNHWKHSHUPLVVLRQELWVLQWKHSURJUDPKHDGHUWDEOHRIWKHH[HFWXDEOHILOH%LWLVLIDVHFWLRQLV
H[HFXWDEOH,Q
7DEOH
WKHRQO\VHFWLRQZLWKELWVHWLVVHFWLRQZKLFKLVLQIDFWWKHWH[WVHFWLRQ%LWLV
IRUZULWHDEOHVHFWLRQV2QO\VHFWLRQVDQGDUHZULWHDEOH6HFWLRQWXUQVRXWWREHWKHGDWDVHFWLRQ
6HFWLRQV
:KHQWKHOLQNHUFUHDWHVDWH[WVHJPHQWLWFRPELQHVWKHWH[WVHFWLRQVIURPWKHREMHFWFRGHILOHV:KHQLW
FUHDWHVDGDWDVHJPHQWLWFRPELQHVGDWDVHFWLRQV7KHOLQNLQJSURFHVVLQYROYHVFROODWLQJ
:KHQWKHJQXOLQNHUOLQNV
R
ILOHVLWQHHGVWRGHVLJQDWHDQDGGUHVVZKHUHH[FHFXWLRQLVWRFRPPHQFH7KH
SURJUDPPHUFDQGHVLJQDWHWKLVE\XVLQJWKHODEHO
PDLQ
DQGPDNLQJVXUHLWLVYLVLEOHWRWKHOLQNHUE\XVLQJ
WKH
JOREDO
DVVHPEOHUGLUHFWLYH
)XUWKHU5HDGLQJ
8QGHUVWDQGLQJ(/)2EMHFW)LOHVDQG'HEXJJLQJ7RROV0DU\/RX1RKU3UHQWLFH+DOO
&KDSWHU,17(558376
7KHIHWFKH[HFXWHF\FOHLVDSURJUDPGULYHQPRGHORIFRPSXWDWLRQ%XWFRPSXWHUVDUHQRWWRWDOO\SURJUDP
GULYHQ7RVRPHH[WHQWWKH\DUHKDUGZDUHGULYHQ&38VDUHHTXLSSHGZLWKLQSXWVLJQDOSLQVZKLFKDOORZWKH
IHWFKH[HFXWHF\FOHWREHLQWHUUXSWHG7KHRULJLQDOSXUSRVHRIWKHVHSLQVZDVWRLQFUHDVHSURFHVVRUHIILFLHQF\
E\UHGXFLQJWKHDPRXQWRIWLPHVSHQWLQFRPPXQLFDWLRQZLWK,2GHYLFHV
,Q
FKDSWHU
ZHVDZKRZDGHYLFHWRLQFUHDVHPHPRU\HIILFLHQF\ZDVDGRSWHGDVDGHYLFHIRUFRQWUROOLQJ
PHPRU\DFFHVV,QWHUUXSWVKDYHXQGHUJRQHDVLPLODUWUDQVLWLRQ7KLVFKDSWHUEHJLQVE\GHVFULELQJKRZ
LQWHUUXSWVHFRQRPL]HRQSURFHVVRUWLPH7KHQVWDUWLQJZLWK
VHFWLRQ
ZHZLOOVHHKRZLQWHUUXSWVDUHXVHG
WRFRQWUROSURFHVVRUDFFHVV
3ROOLQJ
7DEOH6HFWLRQ+HDGHU7DEOHIRU
3URJUDP
OEF6HFWLRQ+HDGHU7DEOH
1DPH
7\SH
)OJV
9LUWXDO$GGUHVV
2IIVHW
6L]H
/LQN
,QIR
$OJQ0RG
(QWU\6L]H
E
D
E
F
G
G
F
HF
F
H
G
I
D
D
E
1DPHLQGH[LQWRWKH6HFWLRQ+HDGHU6WULQJ7DEOHVKVWUDE
7\SH 3URJUDP%LWV 6\PERO7DEOH 6WULQJ7DEOH 5HORFDWLRQ7DEOH +DVK7DEOH '\QDPLF,QIR 1RWH
1R%LWV 5HORFDWLRQ7DEOH
:LWKRXWLQWHUUXSWSLQV,2FRPPXQLFDWLRQZRXOGKDYHWRUHO\RQSURFHVVRULQVWUXFWLRQVVXFKDVWKH
,1
DQG
287
FRPPDQGV
'DWD3RUWV
6XSSRVHWKDWDSURFHVVRULVVHQGLQJFKDUDFWHUVIURPDEXIIHUORFDWHGDW
$%&
WRDSULQWHUORFDWHGDWSRUW+
DQGWKDWWRGRWKLVLWLVVXHVRQHE\WH
287
FRPPDQGVIURPDORRSDVVKRZQLQ
3URJUDP
7KHQDVVXPLQJ
RQHLQVWUXFWLRQSHUPDFKLQHF\FOHHDFKH[HFXWLRQRIWKHORRSZRXOGWDNHILYHPDFKLQHF\FOHV$WDFORFN
UDWHRI0+]DOOFKDUDFWHUVZRXOGEHVHQWWRWKHSULQWHULQVHFRQGV7KLVLVHQRXJKWLPHIRU
WKHSULQWHUWRSULQWRQHRUWZRRIWKHP7KHSULQWHUZRXOGEHVZDPSHGDQGPRVWRIWKHRXWSXWWRWKHSULQWHU
ZRXOGEHORVW
3ULQWHUVDUHVORZLQFRPSDULVRQWRSURFHVVRUV6RDUHPRVWRWKHU,2GHYLFHV
6WDWXV3RUWV
7RSUHYHQWGDWDORVVDSULQWHUPXVWKDYHDVWDWXVSRUWDVZHOODVDGDWDSRUW7KHSURFHVVRUZLOOWKHQEH
UHTXLUHGWRLQTXLUHRIWKHVWDWXVSRUWZKHWKHURUQRWWKHSULQWHULVUHDG\WRUHFHLYHDQRWKHUFKDUDFWHU7KH
SURFHVVRUZLOORQO\RXWSXWDQRWKHUFKDUDFWHUZKHQWKHSULQWHULVUHDG\
3URJUDP
029(';+3ULQWHU'DWD3RUW
029(&;8VH(&;DVWKHORRSFRXQWHU
;<=029$/>$%&(&;@
$%&LVWKHEHJLQQLQJRIWKHPHPRU\DUHD
WKDWFKDUDFWHUVDUHEHLQJSULQWHGIURP
287>';@$/6HQGDFKDUDFWHUWRWKHSULQWHU
,1&(&;
&03(&;3ULQWWKLVPDQ\FKDUDFWHUV
-/;<=
6XSSRVHWKDWWKHSULQWHUZLWKWKHGDWDSRUWDWSRUW+DOVRKDVDVWDWXVSRUWDWSRUW+DQGUHVSRQGVWR
DQLQTXLU\WRWKLVSRUWZLWKDZKHQLWLVUHDG\DQGZLWKDZKHQLWVQRW,QWKLVFDVHWKHRXWSXWORRSPLJKW
ORRNOLNHWKLV$ORRS
3URJUDP
029(';+3ULQWHUVWDWXVSRUW
029(&;
;<=,1$/>';@$VNWKHSULQWHULILWVUHDG\
&03$/PHDQVLWVUHDG\
-1(;<=,IQRWWU\DJDLQ
029$/>$%&(&;@
'(&(';'DWDSRUWLV+
287>';@$/6HQGRQHE\WH
,1&(&;
,1&(';3XWEDFNWKHVWDWXVSRUW
&03(&;
-/;<=
OLNHWKLVVROYHVWKHSUREOHPRIORVWGDWDE\UHGXFLQJSURFHVVRUWKURXJKSXWGRZQWRWKHVSHHGRIWKHSULQWHU
0RVWRIWKHSURFHVVRUVWLPHLVVSHQWH[HFXWLQJWKHWKUHHLQVWUXFWLRQVIROORZLQJWKH
;<=
ODEHO
6XFFHVVLYHO\TXHU\LQJRQH,2GHYLFHDIWHUDQRWKHUDERXWLWVVWDWXVLVFDOOHGSROOLQJ3ROOLQJPDNHVDPRGHVW
LPSURYHPHQWRQWKLVVLWXDWLRQE\SXWWLQJDQLQTXLU\WRDOOSHQGLQJ,2GHYLFHVLQWRRQHVWDWXVLQTXLU\ORRS
%XWLWLVVWLOOFOHDUO\DZDVWHRISURFHVVRUWLPH
([WHUQDO,QWHUUXSWV
,QRUGHUWRDOORZSURJUDPPHUVWRDYRLGUHO\LQJRQSROOLQJSURFHVVRUVKDYHDWOHDVWRQHLQSXWSLQZKLFK
,QRUGHUWRDOORZSURJUDPPHUVWRDYRLGUHO\LQJRQSROOLQJSURFHVVRUVKDYHDWOHDVWRQHLQSXWSLQZKLFK
DOORZV,2GHYLFHVWRVLJQDOWKHSURFHVVRUZKHQWKH\QHHGWKHSURFHVVRUWRGRVRPHWKLQJ6XFKDSLQLV
FDOOHGDQLQWHUUXSWSLQ$QLQWHUUXSWSLQPDNHVLWSRVVLEOHIRUDQ,2GHYLFHWRLQLWLDWHFRPPXQLFDWLRQZLWK
WKH&38$&38ZLWKRXWDQLQWHUUXSWSLQKDVEHHQFRPSDUHGWRDWHOHSKRQHZLWKRXWDEHOO
6XSSRVHWKDWDSULQWHULVFRQQHFWHGWRDQLQWHUUXSWSLQRQWKH&38DVVKRZQLQ
)LJXUH
:LWKWKHSULQWHU
KRRNHGXSWRWKH&38LQWKLVZD\WKH&38ZRXOGEHDEOHWRLJQRUHWKHSULQWHUXQWLOLWUHFHLYHGDVLJQDO,W
FRXOGWKHQSURFHVVDSULQWHUFKDUDFWHUDQGUHWXUQWRLWVPDLQMRE7KHUHZRXOGEHUHODWLYHO\OLWWOHZDVWHGWLPH
7KLVVHWXSZRXOGZRUNILQHLIWKHSULQWHUZHUHWKHRQO\,2GHYLFHZKLFKHYHUQHHGHGDWWHQWLRQ%XWRI
FRXUVHWKHUHDUHPDQ\VXFKGHYLFHV
)LJXUH$&RPSXWHUZLWK2QO\2QH,QWHUUXSW
7RDOORZIRUVHYHUDO,2GHYLFHVRQHPLJKWH[SHFWWKHUHWREHVHYHUDOLQWHUUXSWSLQVRQWKHSURFHVVRU7KH
[DUFKLWHFWXUHGRHVQRWGRWKLQJVWKLVZD\,WKDVRQO\RQHJHQHUDOSXUSRVHLQWHUUXSWSLQ,WGHOHJDWHVWKH
DUELWUDWLRQRILQWHUUXSWVLJQDOVWRDQH[WHUQDOFLUFXLWFDOOHGWKHLQWHUUXSWFRQWUROOHUFLUFXLWDVVKRZQLQ
)LJXUH
7KLVILJXUHDOVRVKRZVDQ,54EXVIURPWKH,2V\VWHPWRWKHLQWHUUXSWFRQWUROOHUFLUFXLW$Q,54EXV
FRQVLVWVRIZLUHVIURPYDULRXV,2GHYLFHV(DFKGHYLFHWKDWQHHGVLQWHUUXSWVHUYLFHLVJLYHQRQHRIWKHZLUHV
RQWKLVEXVDVVXPLQJWKDWWKHUHDUHHQRXJKRIWKHPWRJRDURXQGWKDWLV7KH,54EXVZLUHVDUHQXPEHUHG
,54,54HWF,54VWDQGVIRULQWHUUXSWUHTXHVWOLQH7KHQXPEHUVHWFHQFRXQWHUHGLQWKLVFRQWH[W
DUHFDOOHG,54QXPEHUV
)LJXUH$&RPSXWHUZLWKDQ,QWHUUXSW&RQWUROOHU
7KHLQWHUUXSWFRQWUROOHUDOORZVVHYHUDO,2GHYLFHVWRKDYHDVLJQDOSDWKWRWKH&38HYHQWKRXJKWKH[KDV
RQO\RQHJHQHUDOSXUSRVHLQWHUUXSWSLQ
[,QWHUUXSW+DQGOLQJ
:KHQDQ[SURFHVVRUUHFHLYHVDQLQWHUUXSWVLJQDOLWILUVWFRPSOHWHVWKHLQVWUXFWLRQLWLVFXUUHQWO\ZRUNLQJ
RQ7KHQSURYLGHGDVSHFLDOIODJKDVQRWEHHQFOHDUHGLWKDQGOHVWKHLQWHUUXSWLQWKUHHVWHSV
6WHS
,WUHDGVWKHQXPEHURIWKHLQWHUUXSWUHVSRQVLEOHIRUWKHLQWHUUXSWVLJQDOIURPWKHLQWHUUXSWFRQWUROOHU
6WHS
,WIHWFKHVWKHDGGUHVVRIWKHFRUUHFWLQWHUUXSWVHUYLFHURXWLQHIURPWKHLQWHUUXSWWDEOHLQPHPRU\
6WHS
,WWUDQVIHUVFRQWUROWRWKHLQWHUUXSWVHUYLFHURXWLQH
2QFHWKHLQWHUUXSWKDVEHHQKDQGOHGLWUHVXPHVSURFHVVLQJZKHUHLWOHIWRII,QWHUUXSWVHUYLFHURXWLQHVDUH
VRPHZKDWOLNHRUGLQDU\VXEURXWLQHV2QHLPSRUWDQWGLIIHUHQFHLVWKDWWKH\DUHFDOOHGRQVLJQDOIURPWKH
KDUGZDUH
7KH,QWHUUXSW$FNQRZOHGJH%XV&\FOH
6LQFHWKH[UHFHLYHVLWVJHQHUDOLQWHUUXSWVDOOYLDRQHSLQLWFDQQRWWHOOIURPDVLQJOHNQRFNRQWKHGRRU
ZKLFK,2GHYLFHLVVLJQDOLQJIRUDWWHQWLRQ$VVKRZQLQ
)LJXUH
WKHLQWHUUXSWFRQWUROOHUFLUFXLWLV
FRQQHFWHGWRWKHGDWDEXVMXVWOLNHPHPRU\DQG,27RJHWWKHUHTXLUHGLGHQWLILFDWLRQIURPWKHLQWHUUXSW
FRQWUROOHUWKHSURFHVVRUSHUIRUPVDUHDGZKLFKLVDQDORJRXVWRDPHPRU\RUDQ,2UHDG,WLVFDOOHGWKH
LQWHUUXSWDFNQRZOHGJHEXVF\FOH-XVWDVWKHSURFHVVRUXVHVWKH0,2SLQWRLQGLFDWHZKHWKHULWLV
FRPPDQGLQJDPHPRU\RUDQ,2UHDGLWXVHVWKH'&SLQWRGLVWLQJXLVKDQ,2FRQWUROOHUUHDGIURPWKH
PHPRU\DQG,2UHDGF\FOHV'LVIRUGDWDDQG&LVIRUFRGH7KHFRPSOHWHOLVWRIWKHEXVF\FOHVGHILQHGE\
WKH'&0,2DQG:5SLQVLVJLYHQLQ
7DEOH
:KHQWKHSURFHVVRUUHFHLYHVDQLQWHUUXSWLWLQLWLDWHVDQLQWHUUXSWDFNQRZOHGJHEXVF\FOH2QO\WKHLQWHUUXSW
FRQWUROOHUPD\UHVSRQGWRDQLQWHUUXSWDFNQRZOHGJHEXVF\FOH,WUHVSRQGVE\GHSRVLWLQJDRQHE\WHQXPEHU
RQWKHERWWRPHLJKWELWVRIWKHGDWDEXV7KLVQXPEHULVFDOOHGWKHLQWHUUXSWQXPEHU,WLVQRWWKHVDPHDVDQ
,54QXPEHU7KHSURFHVVRUUHDGVWKHLQWHUUXSWQXPEHURIIWKHGDWDEXV
,65$GGUHVV)HWFKLQJ
7KHSURFHVVRUWKHQWDNHVWKLVQXPEHUDQGXVHVLWDVDQLQGH[LQWRDWDEOHFDOOHGWKH,QWHUUXSW'HVFULSWRU
7DEOH7KLVWDEOHFRQWDLQVWKHDGGUHVVHVRIWKH,QWHUUXSW6HUYLFH5RXWLQHV6HH
)LJXUH
6LQFHWKHLQWHUUXSW
QXPEHULVDQHLJKWELWQXPEHUWKHYDOLGLQWHUUXSWQXPEHUVUDQJHIURPWR
)LJXUH,QWHUUXSW'HVFULSWRU7DEOHE ,'7UHJLVWHU
7DEOH%XV&\FOH'HILQLWLRQ3LQV
'&
0,2
:5
,QWHUUXSW$FNQRZOHGJH
+DOW6SHFLDO&\FOH
&RGH5HDG
UHVHUYHG
,25HDG
,2:ULWH
0HPRU\5HDG
0HPRU\:ULWH
,WLVWKHUHVSRQVLELOLW\RIWKHRSHUDWLQJV\VWHPWRFUHDWHWKLVWDEOH,WLVDOVRUHVSRQVLEOHIRUORDGLQJLQWR
PHPRU\WKHLQWHUUXSWVHUYLFHURXWLQHVZKRVHDGGUHVVHVDUHOLVWHGLQWKLVWDEOH7KHVHWZRMREVDUHGRQHDVD
SDUWRIWKHV\VWHPERRW,IWKH\KDYHQRWEHHQGRQHWKHV\VWHPZLOOEHXQDEOHWRUHVSRQGWRLQWHUUXSWV:KHQ
(GOLQDVGLVSOD\VD3URFHVVRUKDOWHGPHVVDJHLWLVXVXDOO\EHFDXVHLWLVWU\LQJWRUHVSRQGWRDQLQWHUUXSWDQG
QRLQWHUUXSWWDEOHKDVEHHQEXLOW
7KH,QWHUUXSW'HVFULSWRU7DEOH
7KH[KDVDGHGLFDWHGUHJLVWHUZKLFKVWRUHVWKHDGGUHVVRIWKHLQWHUUXSWGHVFULSWRUWDEOHRU,'7,WLVFDOOHG
WKH,'7UHJLVWHU7KHUHDUHVSHFLDOFRPPDQGVIRUDFFHVVLQJWKLVUHJLVWHU7KHFRPPDQG
/,'7PHP
ORDGVWKHUHJLVWHU7KHFRPPDQG
6,'7PHP
VWRUHVWKHFRQWHQWVRIWKLVUHJLVWHU7KH
/,'7
FRPPDQGLVXVHGLQVHWWLQJXSWKHRSHUDWLQJV\VWHPDWERRW
WLPH2QFHDQLQWHUUXSWGHVFULSWRUWDEOHKDVEHHQFUHDWHGWKH
/,'7
FRPPDQGFDQSRLQWWKHSURFHVVRUWRLW
,QUHVSRQGLQJWRDQLQWHUUXSWWKH[XVHVWKHIDFWWKDWHDFKWDEOHHQWU\RFFXSLHVHLJKWE\WHVRIVSDFH
&RQVHTXHQWO\LIELVWKHDGGUHVVVWRUHGLQWKH,'7UHJLVWHUWKHQLQUHVSRQVHWRWKHLQWHUUXSWQXPEHUHGQWKH
[IHWFKHVWKHHLJKWE\WHVVWDUWLQJDWWKHDGGUHVVEîQ7KHVHHLJKWE\WHHQWULHVDUHFDOOHGJDWHV
,65([HFXWLRQ
2QFHWKHDGGUHVVRIWKHLQWHUUXSWVHUYLFHURXWLQHLVREWDLQHGLWLVWUHDWHGDOPRVWOLNHD
&$//
LQVWUXFWLRQWUHDWV
DQDGGUHVV%HIRUHMXPSLQJWRDWDUJHWDGGUHVVD
&$//
LQVWUXFWLRQSXVKHVWKHQH[WDGGUHVVDIWHULWVRZQ
DGGUHVVRQWRWKHVWDFN7KLVPHDQVWKDWWKHFDOOHGURXWLQHPD\UHWXUQWRWKHLQVWUXFWLRQIROORZLQJWKH
&$//
E\
UHDGLQJLWVDGGUHVVRIIWKHVWDFN6LQFHDQLQWHUUXSWVHUYLFHURXWLQHDOVRQHHGVWRH[HFXWHDUHWXUQWKHDGGUHVV
RIWKHLQVWUXFWLRQZKLFKZRXOGRWKHUZLVHKDYHEHHQH[HFXWHGKDGWKHLQWHUUXSWQRWDUULYHGLVSXVKHGRQWR
WKHVWDFNEHIRUHWKH,65LVH[HFXWHG%XWLQWKHFDVHRIDQLQWHUUXSWWKHIODJVUHJLVWHULVSXVKHGDOVR7KH
LQWHUUXSWVHUYLFHURXWLQHGRHVZKDWHYHUEXVLQHVVLVGHPDQGHGE\WKHLQWHUUXSW$QLQWHUUXSWVHUYLFHURXWLQH
VKRXOGHQGZLWKDQ
,5(7
LQVWUXFWLRQZKLFKLVOLNHD
5(7
LQVWUXFWLRQH[FHSWWKDWLWSRSVWKHIODJVUHJLVWHU
VKRXOGHQGZLWKDQ
,5(7
LQVWUXFWLRQZKLFKLVOLNHD
5(7
LQVWUXFWLRQH[FHSWWKDWLWSRSVWKHIODJVUHJLVWHU
7KHIODJVUHJLVWHULVDELWUHJLVWHUQDPHG()/$*6ZKLFKFRQWDLQVDOOWKHIODJV,WLVDQH[WHQVLRQRIWKH
ELW)/$*6UHJLVWHU
7DEOH
VKRZVWKHIODJVLQWKH()/$*6UHJLVWHURQD
7KHUHDVRQIRUWKH[VVSHFLDOIODJEHKDYLRUZKHQUHVSRQGLQJWRLQWHUUXSWVKDVWRGRZLWKWKHSUREOHPRI
LQWHUUXSWDUELWUDWLRQ
,QWHUUXSWLQJDQ,QWHUUXSW
:KDWKDSSHQVZKHQDQLQWHUUXSWRFFXUVZKLOHDQ,65LVDOUHDG\H[HFXWLQJ"&DQRQHGHYLFHLQWHUUXSW
DQRWKHUV,65",PDJLQHWZRGHYLFHVHDFKUHIXVLQJWREHSUHHPSWHGE\WKHRWKHUV,657KHSURFHVVRUZRXOG
JHWERXQFHGEDFNDQGIRUWKIURPRQH,65WRWKHRWKHUXQWLOWKHDFFXPXODWLRQRISHQGLQJUHWXUQDGGUHVVHVRQ
WKHVWDFNRYHUIORZHGDQGFDXVHGWKHV\VWHPWRFUDVK
7KH,QWHUUXSW(QDEOH)ODJ
7KHGHVLJQRIWKHDOORZVIRUDYHU\VLPSOHZD\WRDYRLGWKLVVLWXDWLRQ7KHLGHDZRXOGEHWRHQIRUFHD
VWULFWRQHDWDWLPHLQWHUUXSWSROLF\,WZRXOGZRUNE\DXWRPDWLFDOO\EORFNLQJLQWHUUXSWVLJQDOVZKLOHDQ
,65LVUXQQLQJDQGWKHQXQEORFNLQJWKHPZKHQLWLVILQLVKHG2QHRIWKHIODJVRQWKH[SURFHVVRULVFDOOHG
WKHLQWHUUXSWHQDEOHIODJ:KHQWKLVIODJLVFOHDUHGDOOVLJQDOVRQWKHJHQHUDOSXUSRVHLQWHUUXSWSLQDUH
LJQRUHG:KHQDQHQWHUVDQ,65WKLVIODJLVDXWRPDWLFDOO\FOHDUHG7KDWLVZK\WKHSURFHVVRUSXVKHV
WKHIODJVUHJLVWHURQWRWKHVWDFNMXVWEHIRUHHQWHULQJDQ,65,WDOORZVWKHLQWHUUXSWHQDEOHIODJWREHUHVWRUHG
WRLWVRULJLQDOVWDWHZKHQWKH,65LVGRQH:KHQWKHLQWHUUXSWHQDEOHIODJLVVHWLQWHUUXSWVDUHKDQGOHG
QRUPDOO\
7KHRQHDWDWLPHLQWHUUXSWSROLF\ZRXOGPDNHOLIHHDV\IRUWKHLQWHUUXSWFRQWUROOHU7KHFRQWUROOHUFRXOG
SURFHVVDQLQFRPLQJLQWHUUXSWE\MXVWSDVVLQJLWDORQJWRWKHSURFHVVRUXQWLOLWZDVDFNQRZOHGJHG$VVRRQDV
WKHLQWHUUXSWDFNQRZOHGJHZDVUHFHLYHGWKHFRQWUROOHUFRXOGZDVKLWVKDQGVRIWKDWLQWHUUXSWEHFDXVHWKH
SURFHVVRUFRXOGEHFRXQWHGXSRQWRZRUNRQLWQRQVWRSXQWLOLWZDVGRQH
$OWKRXJKWKHRQHDWDWLPHSROLF\LVYHU\HDV\WRLPSOHPHQWRQDQ[SURFHVVRUVWDQGDUG3&VGRQRWXVH
LW7KHSUREOHPZLWKLWLVWKDWLQWHUUXSWVWKDWQHHGDTXLFNUHVSRQVHFDQEHNHSWZDLWLQJ,IDVHULDOSRUWLV
JHWWLQJUHDG\WRVWDUWWUDVKLQJGDWDEHFDXVHLWVEXIIHULVIXOOWKHQLWVKRXOGQRWEHPDGHWRZDLWZKLOHD
IORSS\GULYHORRNVIRUDJRRGVHFWRU$SURFHVVRUZLWKDRQHDWDWLPHLQWHUUXSWSROLF\FDQEHOLNHD
KRXVHKROGZLWKDVLQJOHRFFXSLHGEDWKURRP8QOLNHWKHVLWXDWLRQZLWKEDWKURRPVKRZHYHULQWHUUXSWLQJDQ
,65LVQRWQHFHVVDULO\UXGH,WVRPHWLPHVPDNHVJRRGVHQVHWRLQWHUUXSWDQ,65
1HVWHG,QWHUUXSWV
7DEOH()/$*65HJLVWHU
%LWV
/DEHO
)XOO1DPH
$&
$OLJQPHQW&KHFN
90
9LUWXDO0RGH
5)
5HVWDUW)ODJ
17
1HVWHG7DVN
,23/
,23ULYLOHJH/HYHO
2)
2YHUIORZ)ODJ
')
'LUHFWLRQ)ODJ
,)
,QWHUUXSW(QDEOH)ODJ
7)
7UDS)ODJ
6)
6LJQ)ODJ
=)
=HUR)ODJ
$)
$6&,,2YHUIORZ)ODJ
3)
3DULW\)ODJ
&)
&DUU\)ODJ
1HVWHG,QWHUUXSWV
0RVWFRPSXWHUVSULRULWL]HLQWHUUXSWVDQGWKHQDOORZKLJKHUSULRULW\LQWHUUXSWVWRLQWHUUXSWWKRVHRIORZHU
SULRULW\7KLVNLQGRISROLF\LVFDOOHGDQHVWHGLQWHUUXSWSROLF\,PSOHPHQWLQJDQHVWHGLQWHUUXSWSROLF\RQDQ
[UHTXLUHVWKDWERWKWKHLQWHUUXSWFRQWUROOHUDQGWKHSURJUDPPHUEHJLYHQPRUHUHVSRQVLELOLW\2QWKH[
WKHSURJUDPPHUKDVFRQWURORYHUWKHLQWHUUXSWHQDEOHIODJ7KH
67,
FRPPDQGVHWVWKHLQWHUUXSWHQDEOHIODJ7KH
&/,
FRPPDQGFOHDUVLW%\LQFOXGLQJDQ
67,
FRPPDQGDWWKHEHJLQQLQJRIDQ,65WKHSURJUDPPHUFDQRYHUULGH
WKHGHIDXOWRQHDWDWLPHSROLF\DQGPDNHDQ,65LQWHUUXSWLEOH,QWHUUXSWVFDQQRWEHQHVWHGLIWKH\H[HFXWH
ZLWKWKHLQWHUUXSWHQDEOHIODJFOHDUHG
7KHUHLVDOVRPRUHZRUNIRUWKHLQWHUUXSWFRQWUROOHU,IWKH[H[HFXWHV,65VZLWKWKHLQWHUUXSWHQDEOHIODJ
VHWWKHQWKHLQWHUUXSWFRQWUROOHUKDVWRDVVXPHUHVSRQVLELOLW\IRUHQIRUFLQJWKHSULRULW\V\VWHP6LQFHWKH
SURFHVVRUKDVLWVJXDUGGRZQWKHLQWHUUXSWFRQWUROOHUPXVWQRWOHWHYHU\LQFRPLQJLQWHUUXSWSDVVWKURXJK
2WKHUZLVHDVQRWHGDERYHWKH,65VFRXOGSOD\SLQJSRQJZLWKWKHSURFHVVRU,QSDUWLFXODUWKHFRQWUROOHULV
UHVSRQVLEOHIRUQRWLQWHUUXSWLQJDQLQWHUUXSWXQOHVVWKH,65EHLQJLQWHUUXSWHGKDVDORZHUSULRULW\WKDQWKH
RQHLWLVDOORZLQJWKURXJK,IWKH,65H[HFXWLQJKDVHTXDORUKLJKHUSULRULW\WKHQWKHSHQGLQJLQWHUUXSWPXVW
ZDLWXQWLOWKH,65LVILQLVKHG%XWLQRUGHUIRUWKHFRQWUROOHUWRKROGRIIWKHSHQGLQJLQWHUUXSWXQWLOWKHQLW
QHHGVWRNQRZZKHQWKH,65JHWVGRQH,WQHHGVDVLJQDO:LWKRXWDVLJQDOLWKDVQRZD\RINQRZLQJ,ILW
GRHVQWNQRZZKHWKHUDKLJKSULRULW\,65LVILQLVKHGH[HFXWLQJWKHQLWFDQQRWGHFLGHZKHWKHULWLVRND\WR
LQWHUUXSWWKH&38ZLWKDORZSULRULW\LQWHUUXSWRUQRW6LQFHWKHLQWHUUXSWFRQWUROOHUKDVLWVRZQUHDGF\FOH
RQHPLJKWH[SHFWDZULWHF\FOHIRUWKLVSXUSRVH
7KH(2,&RPPDQG
6LQFHWKH[GRHVQRWKDYHDQ,2FRQWUROOHUZULWHF\FOHLWIDOOVWRWKHORWRIWKHSURJUDPPHUWRLQFOXGHDQ
$OO'RQHPHVVDJHWRWKHLQWHUUXSWFRQWUROOHUDWWKHHQGRIHDFK,657KLVPHVVDJHLVFDOOHGDQ(2,RUHQG
RILQWHUUXSWFRPPDQG
6RWKDWWKHLQWHUUXSWFRQWUROOHUFDQUHFHLYHFRPPXQLFDWLRQVIURPWKHSURFHVVRULWKDVDQ,2DGGUHVV7KH
SURJUDPPHUFDQWKHQXVHDQ
287
FRPPDQGWRLVVXHWKH(2,7KH,2DGGUHVVLVDOVRXVHGZKHQWKHLQWHUUXSW
FRQWUROOHUJHWVSURJUDPPHG$VQRWHGDERYHLWQHHGVWREHSURJUDPPHGVRWKDWLWNQRZVZKDWLQWHUUXSW
QXPEHUVWRUHSRUW
$VDGHYLFHZLWKDQ,2DGGUHVVWKHLQWHUUXSWFRQWUROOHUORRNVOLNHMXVWDQ\RWKHU,2GHYLFH%XWLWLVVSHFLDO
LQWKDWLWLVWKHRQO\,2GHYLFHWKDWFDQVLJQDOWKHSURFHVVRUGLUHFWO\$OOWKHRWKHUVPXVWJRWKURXJKWKH
LQWHUUXSWFRQWUROOHU
7KH10,DQG5(6(7,QWHUUXSWV
%HVLGHVWKHJHQHUDOSXUSRVHLQWHUUXSWSLQRQWKH[WKHUHDUHWZRRWKHULQWHUUXSWSLQV7KH\DUHWKH10,
DQG5(6(7SLQV
$VLJQDORQWKH10,RUQRQPDVNDEOHLQWHUUXSWSLQLVQRWEORFNHGE\FOHDULQJWKHLQWHUUXSWHQDEOHIODJ,W
GRHVQRWWULJJHUDQLQWHUUXSWDFNQRZOHGJHEXVF\FOH,WLVVHUYLFHGE\LQWHUUXSWVHUYLFHURXWLQHQXPEHU,WLV
XVHGWRVLJQDOSDULW\HUURUVLQPHPRU\RUSRZHUVXSSO\SUREOHPV
7KH5(6(7SLQLVLQWHQGHGIRUXVHLQVLWXDWLRQVZKHUHWKHUHPD\EHQRLQWHUUXSWGHVFULSWRUWDEOHLQPHPRU\
)RUH[DPSOHZKHQWKHFRPSXWHULVEHLQJWXUQHGRQ&RQVHTXHQWO\WKHUHLVQRSRLQWLQVWRULQJDQDGGUHVVIRU
LWLQWKHLQWHUUXSWWDEOH,QVWHDGWKHDGGUHVVLVEXLOWLQWRWKHSURFHVVRU7KDWDGGUHVVLV)))))))+RU
))))+RQWKH,WLVHDVLO\UHPHPEHUHGDV±LQWZRVFRPSOHPHQW7KHUHDGRQO\PHPRU\DWWKLV
DGGUHVVPXVWFRQWDLQDMXPSLQVWUXFWLRQZKRVHWDUJHWLVWKH3267RU3RZHU2Q6HOI7HVWSURJUDP7KLV
DGGUHVVPXVWFRQWDLQDMXPSLQVWUXFWLRQZKRVHWDUJHWLVWKH3267RU3RZHU2Q6HOI7HVWSURJUDP7KLV
SURJUDPLVORFDWHGRQWKH520FKLSFDOOHGWKH%,265HDGRQO\%,26FKLSVDUHVRPHWLPHVPDGHE\WKH
FRPSXWHUPDQXIDFWXUHUEXWDUHPRUHRIWHQERXJKWIURPDWKLUGSDUW\VXFKDV$PHULFDQ0HJDWUHQGVRU
3KRHQL[7KH3267FDQEHWKRXJKWRIDVWKH,65IRUWKH5(6(7LQWHUUXSW7KHILQDODFWRIWKH3267LVWR
LQLWLDWHWKHERRWVHTXHQFH7KH5(6(7SLQLVFRQQHFWHGWRWKHSRZHUVXSSO\DQGRIWHQWRDEXWWRQRQWKH
IURQWRIWKHFRPSXWHU
,6$$UFKLWHFWXUH
7KH,6$DUFKLWHFWXUHLVHVVHQWLDOO\WKHDUFKLWHFWXUHRIWKH,%0$7FRPSXWHU7KH$7LVDQEDVHG
FRPSXWHULQWURGXFHGLQ7KHQDPH,6$RU,QGXVWU\6WDQGDUG$UFKLWHFWXUHDURVHLQUHDFWLRQWRWKH
LQWURGXFWLRQE\,%0RIDQHZDUFKLWHFWXUHFDOOHG0LFUR&KDQQHOLQWKHLU36FRPSXWHUV0LFUR&KDQQHOZDV
LQWHQGHGWRUHSODFHWKHYHU\SRSXODUDUFKLWHFWXUHRIWKH$70DQ\WKLUGSDUWLHVPDQXIDFWXUHGFDUGVZKLFK
FRXOGEHLQVHUWHGLQWRWKHH[SDQVLRQVORWVRIDQ$7RUDQ$7FORQH7KHUHDFWLRQRIWKHVHWKLUGSDUWLHVWR
,%0VQHZDUFKLWHFWXUHZKLFKZRXOGKDYHPDGHDOOWKHLU$7FDUGVREVROHWHZDVWREDQGWRJHWKHUDQG
UHQDPHWKH$7DUFKLWHFWXUHWKH,QGXVWU\6WDQGDUG$UFKLWHFWXUH$VDUHVXOWWKHOLIHVSDQRIWKH$7
DUFKLWHFWXUHZDVJLYHQDFRQVLGHUDEOHH[WHQVLRQ0DQ\LPSRUWDQWDUFKLWHFWXUDOIHDWXUHVZHUHVWDQGDUGL]HGLQ
WKH,6$LQFOXGLQJ
z
WKHLQWHUUXSWFRQWUROOHUFLUFXLW
z
PDQ\,54DVVLJQPHQWV
z
PDQ\,2SRUWDVVLJQPHQWV
z
WKHVLJQDOVDQGFRQQHFWLRQVPDGHDYDLODEOHWRH[SDQVLRQFDUGV
z
WKHSK\VLFDOFRQQHFWRUVXVHGRQH[SDQVLRQFDUGV
0DQ\RIWKHVHIHDWXUHVKDYHEHHQUHWDLQHGLQDOOVXEVHTXHQW[FRPSXWHUV
7KH,QWHUUXSW&RQWUROOHU
7KH,6$LQWHUUXSWFRQWUROOHUFLUFXLWLVEDVHGRQWKH,QWHO3,&RUSURJUDPPDEOHLQWHUUXSWFRQWUROOHU
7KHLVWKHLQWHUUXSWFRQWUROOHUFLUFXLWXVHGLQWKHRULJLQDO,%03&VPD\EHXVHGHLWKHUVLQJO\DV
LQWKH3&RUFRPELQHGLQWRDWZRWLHUHGVWUXFWXUHZLWKRQHPDVWHUDQGDQ\ZKHUHIURPRQHWRHLJKWVODYHVDV
VKRZQLQ
)LJXUH
,QWKHRULJLQDO3&WKHUHZDVDVLQJOH$RQHPDVWHURQHVODYHFRQILJXUDWLRQ
EHFDPHIL[HGDVDSDUWRIWKH,6$DUFKLWHFWXUH7KH,6$LQWHUUXSWFRQWUROOHUFLUFXLWLVVKRZQLQ
)LJXUH
,Q
WKLVFRQILJXUDWLRQWKHUHDUH,54OLQHVZKLFKIHHGLQWRWKHWZRFLUFXLWV
)LJXUH*HQHUDO&RQILJXUDWLRQ
)LJXUH,6$,QWHUUXSW&RQWUROOHU&LUFXLW
,IWKHLQWHUUXSWQXPEHUVUHSRUWHGE\WKHZHUHEXLOWLQWKHQWKHGLIIHUHQWFRQWUROOHUVLQWKLV
FRQILJXUDWLRQVKRZQLQ
)LJXUH
ZRXOGDOOUHSRUWWKHVDPHVHWRIQXPEHUV7KLVZRXOGFOHDUO\QRWEH
VDWLVIDFWRU\7KHUHDVRQIRUKDYLQJDFRQWUROOHUFLUFXLWLVVRWKDWGLIIHUHQWZLUHVRQWKH,54EXVFDQJHQHUDWH
GLIIHUHQWLQWHUUXSWQXPEHUV&RQVHTXHQWO\GLIIHUHQWVQHHGWRUHSRUWGLIIHUHQWLQWHUUXSWQXPEHUV7KH
RQO\UHDVRQDEO\HDV\ZD\WRGRWKLVZDVWRPDNHWKHSURJUDPPDEOH$QFDQEHSURJUDPPHGWR
UHSRUWDQ\HLJKWFRQVHFXWLYHQXPEHUVVWDUWLQJDWDQ\PXOWLSOHRIOHVVWKDQ3URJUDPPLQJRIWKHLV
GRQHDWERRWWLPHXVLQJ
287
FRPPDQGV7KH(2,FRPPDQGLQODQJXDJHLV+,QWKH,6$DUFKLWHFWXUH
WKHPDVWHULVDVVLJQHGWKHGDWDSRUW+&RXOGWKLVEHJHHNKXPRUDWZRUN"DVZHOODV+7KH
VODYHLVDVVLJQHGWKHSRUWV$+DQG$+
$Q(2,FRPPDQGLQUHVSRQVHWRDQLQWHUUXSWIURPWKHVODYHFRQWUROOHULVVHQWWRERWK$+DQG+
,54V
0RVWRIWKHVH,54OLQHVKDYHVSHFLILHGSXUSRVHVLQWKH,6$DUFKLWHFWXUH$OORIWKHPKDYHIL[HGLQWHUUXSW
QXPEHUV:KLOHRQHLQWHUUXSWLVEHLQJVHUYLFHGRUZKLOHWKHLQWHUUXSWIODJLVFOHDUHGXQVHUYLFHGLQWHUUXSWV
PD\SLOHXS7KHLQWHUUXSWFRQWUROOHUFLUFXLWSULRULWL]HVWKHVHLQWHUUXSWVLQWKHRUGHU,54,54,54«
,54,54,54«,54,54KDVWKHKLJKHVWSULRULW\,54KDVWKHORZHVW7KHIDFWWKDWWKHUHDUH
RQO\DIHZ,54OLQHVDYDLODEOHKDVOHDGWR,54FRQIOLFWV,54VKDULQJDVZHOODVVZLWFKHVRQFDUGVZKLFK
RQO\DIHZ,54OLQHVDYDLODEOHKDVOHDGWR,54FRQIOLFWV,54VKDULQJDVZHOODVVZLWFKHVRQFDUGVZKLFK
DOORZDQ,54OLQHWREHFKDQJHG
/LQX[PDLQWDLQVDFRXQWRIWKHLQWHUUXSWUHTXHVWVZKLFKFRPHLQRQWKH,54OLQHV7RVHHWKLVFRXQW\RX
PD\XVHWKHFRPPDQG
OLQX[ER[FDWSURFLQWHUUXSWV
7KHRXWSXWRIWKLVFRPPDQGVKRXOGEHFRPSDUHGZLWK
7DEOH
,QWHUQDODQG6RIWZDUH,QWHUUXSWV
,QWHUUXSWVZKLFKGRQRWDULVHDVWKHUHVXOWRIDQH[WHUQDOVLJQDORQDQLQWHUUXSWSLQDOVRH[LVW
([FHSWLRQV
6XSSRVHWKDWWKHIHWFKH[HFXWHF\FOHHQFRXQWHUVWKHPDFKLQHFRGH))+7KLVPDFKLQHFRGHLVQRWGHILQHG
6XSSRVHD
029
LQVWUXFWLRQDWWHPSWVWRDFFHVVDPHPRU\DGGUHVVWRZKLFKWKHRSHUDWLQJV\VWHPKDVQRWJLYHQ
SHUPLVVLRQ6XSSRVHWKDWWKH
',9
FRPPDQGSURGXFHVDTXRWLHQWZKLFKLVWRRELJIRUWKHGHVWLQDWLRQUHJLVWHU
6XSSRVHWKDWWKHVWDFNRYHUIORZV7KHVHDUHVLWXDWLRQVZKHUHWKHGHVLJQHUVRIWKH[SUHIHUUHGWRGHOHJDWH
WRWKHRSHUDWLQJV\VWHPWKHGHFLVLRQDVWRZKDWDFWLRQVKRXOGEHWDNHQ,QIDFWWKH\IRUFHGWKHRSHUDWLQJ
V\VWHPWRWDNHRYHUDWWKHVHSRLQWVE\DVVLJQLQJLQWHUUXSWQXPEHUVWRWKHVHH[FHSWLRQV7KHVHLQWHUUXSW
QXPEHUVDUHEXLOWLQWRWKH[SURFHVVRUV([FHSWLRQVGRQRWXVHLQWHUUXSWDFNQRZOHGJHEXVF\FOHV%XWWKH\
PXVWEHKDQGOHGE\QXPEHUHG,65VMXVWDVH[WHUQDOLQWHUUXSWVDUH
7DEOH
OLVWVWKHH[FHSWLRQVZKLFKDUHEXLOWLQWRWKH[SURFHVVRUV1RWHWKDWVRPHRIWKHVHLQWHUUXSW
QXPEHUVDUHWKHVDPHDVWKHLQWHUUXSWQXPEHUVUHSRUWHGE\DQ,6$LQWHUUXSWFRQWUROOHU:KHQLQWHUUXSWVDUH
VKDUHGOLNHWKLVWKH,65LVVWXFNZLWKWKHUHVSRQVLELOLW\IRUGLVWLQJXLVKLQJZKLFKVLWXDWLRQKDVFDXVHGWKH
LQWHUUXSW
6RIWZDUH,QWHUUXSWV
,QRUGHUWRPDNHWKHLQWHUUXSWVHUYLFHURXWLQHVDFFHVVLEOHWRSURJUDPPHUVWKH
,17
LQVWUXFWLRQZDVDGGHGWR
WKHLQVWUXFWLRQVHW7KHV\QWD[LVVLPSO\
,17LPP
7DEOH,6$,QWHUUXSW5RXWLQJV
,54
$OORFDWLRQ
,QWHUUXSW1XPEHU
,54
6\VWHP7LPHU
+
,54
.H\ERDUG
+
,54
6HULDO3RUW
%+
,54
6HULDO3RUW
&+
,54
3DUDOOHO3RUW
'+
,54
)ORSS\&RQWUROOHU
(+
,54
3DUDOOHO3RUW
)+
,54
5HDO7LPH&ORFN
+
,54
DYDLODEOH
+
,54
DYDLODEOH
+
,54
DYDLODEOH
+
,54
0RXVH
+
,54
(5525OLQH
+
,54
+DUG'ULYH&RQWUROOHU
+
,54
DYDLODEOH
+
ZKHUHWKHLPPHGLDWHYDOXHLVDQ\RQHE\WHQXPEHU7KLVLQVWUXFWLRQFDQEHXVHGWRH[HFXWHDQ\LQWHUUXSW
VHUYLFHURXWLQH,WLVVLPLODUWRD
&$//
LQVWUXFWLRQ
)DXOWVDQG7UDSV
:KHQWKHVHUYLFHURXWLQHIRUDQH[WHUQDOLQWHUUXSWRUDVRIWZDUHLQWHUUXSWILQLVKHVFRQWUROLVWUDQVIHUUHGWR
WKHQH[WLQVWUXFWLRQIROORZLQJWKHLQWHUUXSWMXVWDVLWZRXOGEHIROORZLQJWKHFRPSOHWLRQRIDVXEURXWLQHFDOO
7KLVLVXVXDOO\QRWWKHFDVHZLWKKDUGZDUHH[FHSWLRQV:KHQWKHVHUYLFHURXWLQHVIRUPRVWH[FHSWLRQVDUH
FRPSOHWHGWKHLQVWUXFWLRQJLYLQJULVHWRWKHPLVUHWULHG+DUGZDUHH[FHSWLRQVIRUZKLFKWKLVLVWUXHDUHFDOOHG
IDXOWV$JRRGH[DPSOHRIDIDXOWLVDSDJHIDXOW$SDJHIDXOWRFFXUVZKHQDIDLOXUHWRDFFHVVPHPRU\KDV
RFFXUUHGEHFDXVHLWKDVEHHQSDJHGRXWWRWKHGLVN7KHLQWHUUXSWVHUYLFHURXWLQHSDJHVLWEDFNLQDJDLQDQG
WKHQWKHRULJLQDOLQVWUXFWLRQLVUHWULHG
$IHZKDUGZDUHH[FHSWLRQVDUHOLNHRUGLQDU\LQWHUUXSWVDQGSDVVFRQWUROWRWKHQH[WLQVWUXFWLRQZKHQWKH\
ILQLVK7KHVHDUHFDOOHGWUDSV$QH[DPSOHRIDWUDSLVGLYLVLRQRYHUIORZRQDQ
6\VWHP&DOOV
2QHRIWKHEDVLFIXQFWLRQVRIDQRSHUDWLQJV\VWHPLVWRSURYLGHDFFHVVWRKDUGZDUHGHYLFHVDVLOOXVWUDWHGLQ
)LJXUH
,Q8QL[DOODFFHVVWRKDUGZDUHGHYLFHVLVSURYLGHGE\ZD\RIZKDWDUHFDOOHGV\VWHPFDOOV8VHUV
RUGLQDULO\JHWDFFHVVE\XVLQJHLWKHUVWDQGDUG8QL[FRPPDQGVVXFKDV
FDW
RU
OV
RUE\XVLQJ&OLEUDU\
IXQFWLRQVVXFKDV
SULQWI
RU
VFDQI
%XWERWK8QL[FRPPDQGVDQG&OLEUDU\IXQFWLRQVUHO\RQV\VWHP
FDOOVWRJDLQKDUGZDUHDFFHVV6HH
)LJXUH
UHDG
DQG
ZULWH
DUHH[DPSOHVRIV\VWHPFDOOV7KH
ZULWH
V\VWHPFDOOWDNHVWKUHHSDUDPHWHUVDILOHWREHZULWWHQWRDPHPRU\EXIIHUWREHZULWWHQIURPDQGWKH
QXPEHURIE\WHVWREHZULWWHQ,WDSSHDUVWREHDQRUGLQDU\&IXQFWLRQDQGFDQEHXVHGDVWKRXJKLWZHUH
3URJUDP
LOOXVWUDWHVD+HOORZRUOGSURJUDPXVLQJWKH
ZULWH
V\VWHPFDOO
)LJXUH6\VWHP&DOOVDUH-XVW6RIWZDUH,QWHUUXSWV
7DEOH%XLOWLQ+DUGZDUH([FHSWLRQV
$OORFDWLRQ
,QWHUUXSW1XPEHU
'LYLVLRQ2YHUIORZ
+
6LQJOH6WHS
+
10,
+
%UHDNSRLQW
+
,QWHUUXSWRQ2YHUIORZ
+
%281'
RXWRIUDQJH
+
,QYDOLG0DFKLQH&RGH
+
1RW$YDLODEOH
+
'RXEOH)DXOW
+
6HJPHQW2YHUUXQ
+
,QYDOLG7DVN6WDWH6HJPHQW
$+
6HJPHQW1RW3UHVHQW
%+
6WDFN2YHUIORZ
&+
*HQHUDO3URWHFWLRQ(UURU
'+
3DJH)DXOW
(+
UHVHUYHG
)+
(UURU
+
7DEOH$Q,QWHUUXSWLV/LNHD6XEURXWLQH
2UGLQDU\6XEURXWLQH
,QWHUUXSW6HUYLFH5RXWLQH
,QYRNH
&$//
,17
7HUPLQDWH
5(7
,5(7
3URJUDP
PDLQ
^
FKDUV>@ +HOORZRUOG?Q
ZULWHV
`
%XWGHVSLWHDSSHDUDQFHVWKH
ZULWH
V\VWHPFDOOLVQRWDQRUGLQDU\&IXQFWLRQ/LNHDOOV\VWHPFDOOVLQ
/LQX[LWXVHV
,17+
WRWUDQVIHUFRQWUROWRWKHNHUQHO(DFKV\VWHPFDOOLQ/LQX[KDVDQXPEHU$OLVWRI
WKHVHFDOOVDQGWKHLUQXPEHUVFDQEHIRXQGLQ
XVUVUFOLQX[DUFKLXQLVWGK
,Q/LQX[
ZULWH
LVV\VWHPFDOOQXPEHU7RFDUU\RXWWKLVV\VWHPFDOOWKHQXPEHUPXVWEHVWRUHGLQWKH($;
UHJLVWHUEHIRUH
,17+
LVFDOOHG
,Q'26PDQ\V\VWHPFDOOVDUHPDGHXVLQJ
,17+
7KHQXPEHUVWRUHGLQWKH$+UHJLVWHUGHWHUPLQHV
ZKLFKV\VWHPFDOOLVEHLQJPDGH$OLVWRIPRVWRIWKHVHFDOOVFDQEHIRXQGLQVWDQGDUGERRNVRQ'267KH
ERRN8QGRFXPHQWHG'26E\$QGUHZ6FKXOPDQHWDODWWHPSWVWROLVWDOORIWKHP7KHH[LVWHQFHRI
XQGRFXPHQWHG'26V\VWHPFDOOVJDYHULVHWRFRQVLGHUDEOHELWWHUQHVVRQWKHSDUWRIGHYHORSHUVZKRFRXOG
KDYHSXWVXFKIXQFWLRQVWRJRRGXVHKDGWKH\EXWNQRZQRIWKHP1HHGOHVVWRVD\SURJUDPPHUVDW0LFURVRIW
GLGQRWHQFRXQWHUWKLVREVWDFOH
7RXVHDV\VWHPFDOOIURPDVVHPEOHULWLVQHFHVVDU\WRNQRZWKHSDUDPHWHUSDVVLQJFRQYHQWLRQV7KHVH
FRQYHQWLRQVDUHHVWDEOLVKHGE\PDFURVDOVRORFDWHGLQ
XQLVWGK
$FFRUGLQJWRWKHFRQYHQWLRQVXVHGLQ
/LQX[WKHSDUDPHWHUVDUHVWRUHGLQOHIWWRULJKWRUGHULQWKHUHJLVWHUV(%;(&;(';(',DQG(6,
UHVSHFWLYHO\XVLQJDVPDQ\RIWKHVHUHJLVWHUVDVDUHQHHGHGWRVWRUHWKHSDUDPHWHUV
7KHV\VWHPFDOO
ZULWHV
IRUH[DPSOHFDQEHFRPSOHWHGLILVVWRUHGLQ(%;WKHVWULQJ
SRLQWHULVVWRUHGLQ(&;DQGLVVWRUHGLQ(';
3URJUDP
LOOXVWUDWHVWKLV,QGHEXJJLQJV\VWHPFDOOVWKH
VWUDFHXWLOLW\LVLQYDOXDEOH)RUH[DPSOHDIWHUJHWWLQJDQ
DRXW
IURPJFFIURPIRU
3URJUDP
ZHFRXOGXVH
OLQX[ER[VWUDFHDRXW
WRFKHFNRQWKLQJVLQWKHHYHQWRIGLIILFXOW\
3URJUDP
7KLVSURJUDPPDNHVDV\VWHPFDOO
JOREDOPDLQ
PDLQ
029($;:ULWHLVV\VWHPFDOO
029(%;LVQXPEHUIRUVWDQGDUGRXWSXW
029(&;$%&$%&LVWKHVWULQJSRLQWHU
029(';:ULWLQJE\WHV
,17+6\VWHPFDOOLQWHUUXSW
5(7
$%&GE+HOORZRUOG$+
$%&GE+HOORZRUOG$+
7KHUHVRXUFHVRIIHUHGE\/LQX[WRWKHSURJUDPPHUDUHHVVHQWLDOO\GHILQHGE\WKHFDSDELOLWLHVRIWKHV\VWHP
FDOOV2QHUHDVRQIRUWKHVXFFHVVRI/LQX[HDUO\RQZDVWKDWLWZDVGHVLJQHGWRDGKHUHWRWKH326,;VWDQGDUG
IRUWKHSURJUDPPHUVV\VWHPLQWHUIDFH/LQX[ZDVRQHRIWKHILUVWRSHUDWLQJV\VWHPVWRDFKLHYH326,;
FRPSOLDQFH:LQGRZV17LVDOVR326,;FRPSOLDQW
3ULYLOHJH/HYHOV
:KHQDV\VWHPFDOOWDNHVRYHUWKHSURFHVVRULWGRHVVREHFDXVHDSURJUDPQHHGVWKHNHUQHOWRGRVRPHWKLQJ
ZKLFKLWLVXQDEOHWRGRIRULWVHOIOLNHUHDGDILOHRUZULWHWRWKHPRQLWRU7KHSURJUDPLVLQFDSDEOHRIWKHVH
WKLQJVEHFDXVHWKHSURFHVVRULWVHOILVEORFNHGIURPGRLQJWKHPZKLOHXVHUFRGHLVH[HFXWLQJ7KHGLIIHUHQFH
EHWZHHQNHUQHOFRGHDQGXVHUFRGHLVDGLIIHUHQFHLQSULYLOHJHOHYHO6LQFHWKHDSURWHFWLRQV\VWHP
EDVHGRQDV\VWHPRIIRXUGLIIHUHQWSULYLOHJHOHYHOVKDVEHHQLQSODFH7KHIRXUOHYHOVDUH
z
6\VWHPOHYHOSULYLOHJHXVHGE\WKH/LQX[NHUQHO
z
8QXVHGLQ/LQX[
z
8QXVHGLQ/LQX[
z
8VHUOHYHOSULYLOHJHXVHGE\/LQX[XVHUSURJUDPV
7KHSULYLOHJHOHYHORIWKHFXUUHQWO\H[HFXWLQJFRGHLVFDOOHGWKHFXUUHQWSULYLOHJHOHYHO,WLVVWRUHGLQDWZR
ELWUHJLVWHUFDOOHGWKH&3/UHJLVWHU
7KH&3/5HJLVWHU
7KH&3/UHJLVWHULVRQHRIWKHPRVWLPSRUWDQWUHJLVWHUVRQWKHPDFKLQH/HYHOKDVWKHPRVWSULYLOHJH
&KDQJLQJWKH&3/YDOXHWRLVOLNHGLVHQJDJLQJWKHVDIHW\FDWFKRQWKHSURFHVVRU,WWDNHVSODFHHYHU\WLPH
DV\VWHPFDOOLVH[HFXWHG,WLVDPRUHGUDVWLFVWHSWKDQEHFRPLQJVXSHUXVHU3URPWKHVWDQGSRLQWRI&3/
EDVHGSULYLOHJHWKHVXSHUXVHULVMXVWDQRWKHUXVHU%XWZKHQWKH&3/LVWKHSURFHVVRUFDQGRWKLQJVWKDW
QRXVHUFDQGR)RUH[DPSOHLWFDQPRGLI\WKHSDJHWDEOHVRUFKDQJHWKHLQWHUUXSWGHVFULSWRUWDEOH
2IFRXUVHJLYHQWKDW
URRW
LVWKHRZQHURIWKHGLVNLPDJHRIWKHNHUQHOWKHILOH
YPOLQX]
LQWKHURRW
GLUHFWRU\
URRW
FDQGRZKDWHYHULWZDQWVLQGLUHFWO\E\FKDQJLQJWKLVILOH
URRW
FDQDOVRPRGLI\NHUQHOFRGH
ZKLFKLVVWRUHGLQPRGXOHV%XWWKHVHFKDQJHVZLOORQO\WDNHHIIHFWWKHQH[WWLPHWKHV\VWHPLVERRWHGRUD
NHUQHOPRGXOHLVORDGHG
3ULYLOHJHG,QVWUXFWLRQV
7KH
/,'7
LQVWUXFWLRQFKDQJHVWKHDGGUHVVVWRUHGLQWKH,'7UHJLVWHU7KLVLVWKHDGGUHVVWKDWWKHSURFHVVRU
JRHVWRZKHQLWUHFHLYHVDQLQWHUUXSW7KLVLQVWUXFWLRQKDVWKHHIIHFWRIFKDQJLQJIURPRQHLQWHUUXSWWDEOHWR
DQRWKHURQH,IXVHGE\DXVHULWFRXOGEHXVHGWRWDNHFRQWURORIDOOLQWHUUXSWVE\VHQGLQJWKHSURFHVVRUWRD
SULYDWHWDEOHIRUWKHKDQGOLQJRIDOOLQWHUXSWV,WLVDJRRGH[DPSOHRIZKDWLVFDOOHGDSULYLOHJHGLQVWUXFWLRQ
7KHSURFHVVRUZLOOQRWH[HFXWHDSULYLOHJHGLQVWUXFWLRQXQOHVVWKH&3/ ,IWKLVLQVWUXFWLRQLVLQFOXGHGLQ
FRGHZKLFKLVH[HFXWLQJZKLOHWKH&3/!IRUH[DPSOHLQXVHUFRGHZKHUHWKH&3/ LWFDXVHVDQ
H[FHSWLRQFDOOHGDJHQHUDOSURWHFWLRQHUURU6HH
7DEOH
7KH
029
PQHPRQLFQDPHVDQLQVWUXFWLRQWKDWFDQEHXVHGWRDFFHVVWKHFRQWUROUHJLVWHUV7KHFRPPDQG
029UHJUHJ
ZKHUHRQHUHJLVDFRQWUROUHJLVWHUDQGWKHRWKHULVDELWJHQHUDOUHJLVWHUFDQEHXVHGWRORDGDYDOXHLQWR
&5IRUH[DPSOH&5KROGVWKHDGGUHVVRIWKHSDJHWDEOHWDEOHZKHUHDGGUHVVWUDQVODWLRQEHJLQV/RDGLQJD
QHZYDOXHLQWR&5KDVWKHHIIHFWRIFKDQJLQJIURPRQHVHWRISDJHWDEOHVWRDQRWKHU,IWKLVFRXOGEHGRQH
E\DXVHUWKHXVHUFRXOGWDNHFRQWURORISK\VLFDOPHPRU\
029
XVHGZLWKFRQWUROUHJLVWHUVLVDQRWKHUJRRG
E\DXVHUWKHXVHUFRXOGWDNHFRQWURORISK\VLFDOPHPRU\
029
XVHGZLWKFRQWUROUHJLVWHUVLVDQRWKHUJRRG
H[DPSOHRIDSULYLOHJHGLQVWUXFWLRQ
6WDFN3UREOHPV
6LQFHWKH,65FRGHWKDWWKHLQWHUUXSWLVMXPSLQJWRPD\ZHOOXVHWKHVWDFNLWLVLPSRUWDQWWKDWWKHVWDFNQRW
EHVXEMHFWWRZULWHDFFHVVE\WKHXVHU(YHQWKRXJKXVHUFRGHZLOOQRWIXQFWLRQDJDLQXQWLOWKH,65H[LWV
WKHUHFDQVWLOOEHWURXEOH)RUH[DPSOHVXSSRVHWKDWWKHV\VWHPFDOO
UHDG
LVEHLQJH[HFXWHG
UHDG
WUDQVIHUVGDWDIURPDILOHWRXVHUPHPRU\2QHRIWKHSDUDPHWHUVWRWKLVFDOOLVWKHDGGUHVVRIVRPHPHPRU\
WKDWWKHXVHUKDVSHUPLVVLRQWRZULWHRQ,QH[HFXWLQJWKHFDOOWKHV\VWHPZLOOVWRUHILOHGDWDDWWKDWDGGUHVV
,IWKHVWDFNEHLQJXVHGE\WKHV\VWHPLVWKHXVHUVVWDFNWKHQWKHXVHUKDVSHUPLVVLRQWRZULWHRQLW7KHXVHU
PD\WKHQVXSSO\WKHVWDFNDGGUHVVDVSDUDPHWHUWR
UHDG
DQGWKHV\VWHPZLOOWKHQPHVVXSWKHVWDFNLWLV
XVLQJDWWKHYHU\WLPHLWLVXVLQJLW7KLVZRXOGFDXVHDFUDVK
8VHUFRGHZULWHVZKHUHLWVKRXOGQWXVXDOO\E\PLVWDNHDQGQRWRXWRIPDOLFH%XWLWKDSSHQVDORW7KDWV
ZK\WKH6HJPHQWDWLRQ)DXOWHUURUPHVVDJHLVVRJDOOLQJO\IDPLOLDU&RGHIRUV\VWHPFDOOVOLNH
UHDG
QHHGV
WRXVHLWVRZQVWDFN7KHUHLVDGLIIHUHQWVWDFNIRUHDFKYDOXHRIWKH&3/&KDQJLQJVWDFNVLVWDNHQFDUHRIE\
WKHKDUGZDUH(DFKVWDFNKDVLWVRZQVWDFNSRLQWHU7KHVHIRXUVWDFNSRLQWHUVDUHVWRUHGLQDPHPRU\DUHD
FDOOHGWKH7DVN6WDWH6HJPHQW
7KHOD\RXWRIDJDWHLVEXLOWLQWRWKH[SURFHVVRU
)LJXUH
VKRZVWKHPRVWLPSRUWDQWILHOGVLQDJDWH
7KHVHILHOGVFRQWDLQWZRLWHPVWKDWSHUWDLQWRWKLV
)LJXUH*DWH/D\RXW
GLVFXVVLRQ7KH\DUH
z
$IRXUELWW\SHYDOXHZKLFKLVVWRUHGLQELWV±
z
7KHDGGUHVVRIWKH,657KLVELWDGGUHVVLVORFDWHGLQELWV±DQGELWV±RIWKHWDEOHHQWU\
,QWHUUXSWJDWHVDUHXVHGIRUKDUGZDUHLQWHUUXSWV$WUDSJDWHLVXVHGIRUWKH
,17+
V\VWHPFDOOLQWHUUXSW
&RQWURO7UDQVIHU
%DVHGRQWKHWZRLWHPVRILQIRUPDWLRQJOHDQHGIURPWKHJDWHWKHDFWLRQVGLVFXVVHGLQ
VHFWLRQV
WKURXJK
DUHWDNHQ
&OHDUWKH,QWHUUXSW(QDEOH)ODJ"
:KHQWKH[ORDGVDGHVFULSWRUWDEOHHQWU\LQUHVSRQVHWRDQLQWHUUXSWWKHIRXUELWW\SHYDOXHLVFKHFNHGWR
VHHLIWKHLQWHUUXSWHQDEOHIODJVKRXOGEHFOHDUHG,IWKHW\SHYDOXHLVWKHLQWHUUXSWHQDEOHIODJLVFOHDUHG
MXVWDVLWLVRQWKH7ZHOYHRIWKHSRVVLEOHIRXUELWYDOXHVDUHGHILQHG
6WRUHLQWRWKH&3/
7KHQH[WVWHSLQWKHSURFHVVLQJRIDQLQWHUUXSWLVWKDWLVORDGHGLQWRWKH&3/&RQILGHQFHLQWKHVDIHW\RI
7DEOH,QWHUUXSW*DWHVYV7UDS*DWHV
7\SH9DOXH *DWH7\SH
&OHDU,()ODJ
,QWHUUXSW*DWH
<HV
7UDS*DWH
1R
7KHQH[WVWHSLQWKHSURFHVVLQJRIDQLQWHUUXSWLVWKDWLVORDGHGLQWRWKH&3/&RQILGHQFHLQWKHVDIHW\RI
WKLVVWHSPXVWEHEDVHGRQFRQILGHQFHLQWKHFRGHWKDWLVEHLQJMXPSHGWR
7KHRULJLQDOYDOXHRIWKH&3/LVUHVWRUHGZKHQWKH
,5(7
LQVWUXFWLRQH[HFXWHV
7KHPHFKDQLVPEHKLQGWKH&3/VWRUHDQGUHVWRUHLVGLVFXVVHGLQ
FKDSWHU
&KDQJH6WDFNV
7KH(63XVHGE\WKHNHUQHOLVZDLWLQJLQWKHWDVNVWDWHVHJPHQW7KH(63FRUUHVSRQGLQJWR&3/ LV
ORDGHGIURPWKHUHLQWR(63ZKHQLVORDGHGLQWRWKH&3/7KHFXUUHQW(63LVQRWVWRUHGLQWKHWDVNVWDWH
VHJPHQW,WLVSXVKHGRQWRWKHQHZVWDFN
7KHIDFWWKDWWKHWDVNVWDWHVHJPHQWLVQRWFKDQJHGZKHQLVVWRUHGLQWRWKH&3/LVVRPHWLPHVZKDWLVPHDQW
E\VD\LQJWKDWWKHNHUQHOLVH[HFXWLQJZLWKLQDWDVNRULQEHKDOIRIDWDVN,QRWKHUZRUGVWKHUHLVQRWDVN
VZLWFKLQYROYHG7KHVDPHWDVNLVVWLOOUXQQLQJ
-XPSWRWKH,65
7RGRWKHMXPSWKHUHWXUQDGGUHVVRIWKHQH[WLQVWUXFWLRQLVSXVKHGRQWRWKHQHZVWDFN7KHQHZ(,3LVWKHQ
ORDGHGZLWKWKHELWDGGUHVVIURPWKHJDWH
:KHQWKHVHIRXUVWHSVKDYHEHHQFRPSOHWHGFRQWUROKDVEHHQWUDQVIHUUHGWRNHUQHOFRGHZKLFKUXQVDW&3/
7KHUHVRXUFHVRIWKHSURFHVVRUZKLFKDUHDFFHVVLEOHIURPWKLVOHYHORISULYLOHJHLQFOXGHDOOWKHGDWD
VWUXFWXUHVYLWDOWRWKHIXQFWLRQLQJRIWKHRSHUDWLQJV\VWHPDVZHOODVWKHKDUGZDUHDQGWKHPHPRU\
:KHQWKH,65LVFRQFOXGHGWKHQZLWKRQHH[FHSWLRQFRQWUROLVUHWXUQHGWRWKHXVHUFRGH%RWKWKHROGVWDFN
DQGWKH&3/DUHUHVWRUHG7KHH[FHSWLRQLVLQWKHFDVHRIWKHWLPHULQWHUUXSW
6FKHGXOLQJ
,Q
7DEOH
ZHVHHWKDWWKHPDVNDEOHLQWHUUXSWZLWKWKHKLJKHVWSULRULW\LVWKHWLPHULQWHUUXSW7KH,65IRU
WKLVLQWHUUXSWNHHSVWUDFNRIWLPHXVHGE\DOOSURFHVVHV,QSDUWLFXODULWVHWVDIODJFDOOHG
QHHGBUHVFKHG
ZKHQDSURFHVVLVRXWRIWLPH:KHQ/LQX[GRHVDUHWXUQIURPDQ\LQWHUUXSWWKHWLPHULQWHUUXSWLQFOXGHGLW
FKHFNVWKLVIODJDQGFDOOVWKH
VFKHGXOH
LI
QHHGBUHVFKHG
LVVHW7KH
VFKHGXOH
V\VWHPFDOOLVWKH
VFKHGXOHU,WLVWKHFHQWUDOSURJUDPLQWKHRSHUDWLQJV\VWHP,WGHWHUPLQHVZKLFKSURFHVVJHWVWRUXQQH[W
:KHQQHFHVVDU\LWLQLWLDWHVDWDVNVZLWFK
6RWKHXOWLPDWHFRPSXWLQJUHVRXUFHSURFHVVRUWLPHDOVRIDOOVXQGHUWKHFRQWURORIWKH&3/EDVHGSURWHFWLRQ
V\VWHP
)XUWKHU5HDGLQJ
,6$6\VWHP$UFKLWHFWXUH7RP6KDQOH\DQG'RQ$QGHUVRQ$GGLVRQ:HVOH\
,QWHUUXSW'ULYHQ3&6\VWHP'HVLJQ-RVHSK0F*LYHUQ$QQDERRNV
&KDSWHU%,70$1,38/$7,216
%LWZLVH/RJLF2SHUDWLRQV
7KH$1'25127DQG;25&RPPDQGV
%LW6HWWLQJDQG7HVWLQJ
6KLIW,QVWUXFWLRQV
%LWZLVH/RJLF2SHUDWLRQV
,Q
FKDSWHU
VHFWLRQ
FLUFXLWVDQGWUXWKWDEOHVIRUWKH%RROHDQRSHUDWLRQV$1'25127DQG;25
ZHUHGLVFXVVHG7KHWUXWKWDEOHIRU$1'LV
DQGLVLPSOHPHQWHGXVLQJWKH%RROHDQFLUFXLW
,IHLJKWRIWKHVH%RROHDQFLUFXLWVDUHXVHGLQSDUDOOHOWKHQWZRHLJKWELWQXPEHUV
ZKHQIHGLQWRWKHHLJKW$1'JDWHVUHVXOWLQRQHHLJKWELWRXWSXW
7KHRSHUDWLRQLVFDUULHGRXWDVVKRZQLQ
)LJXUH
,QKH[QRWDWLRQWKHE\WHV)+DQG&+XVHGDVLQSXWV
WRDRQHE\WH$1'RSHUDWLRQKDYHSURGXFHGWKHRXWSXW&+7KLVRSHUDWLRQFDQEHDSSOLHGWRDQ\QXPEHU
RIELWV7KH%RROHDQRSHUDWLRQV25;25DQG127FDQDOVREHDSSOLHGLQELWZLVHSDUDOOHOIDVKLRQ
)LJXUH%LWZLVH$1'2SHUDWLRQ
7KH
$1'25127
DQG
;25
&RPPDQGV
+LJKOHYHOSURJUDPPLQJODQJXDJHVLQFOXGHVXSSRUWIRU%RROHDQRSHUDWLRQVVXFKDV$1'25DQG127
7KH\UHO\RQDVVHPEOHUDQGPDFKLQHOHYHOLPSOHPHQWDWLRQRIWKHVHRSHUDWLRQV
7KH
$1'
LQVWUXFWLRQDSSOLHVWKH$1'RSHUDWLRQWRWZRRSHUDQGVLQPXFKWKHVDPHZD\WKDWWKH
$''
LQVWUXFWLRQDGGVWZRRSHUDQGV7KHIROORZLQJIRUPVDUHDOOYDOLGIRUWKH
$1'
FRPPDQG
$1'UHJLPP
$1'UHJUHJ
S
T
S$1'T
$VZLWKWKH
$''
FRPPDQGVDPHPRU\RSHUDQGFDQWDNHWKHSODFHRIRQHUHJLVWHURSHUDQG$OVROLNHWKH
$''
FRPPDQGWKHWZRRSHUDQGVPXVWKDYHWKHVDPHVL]H)RUH[DPSOHVXSSRVHWKDWWKH$/UHJLVWHUFRQWDLQV
)+DQG%/FRQWDLQV&+7KHQWKHFRPPDQG
$1'$/%/
ZRXOGVWRUHWKHUHVXOW&+LQWR$/DQGOHDYH%/XQFKDQJHG
([FHSWIRUWKHIDFWWKDWWKH\DSSO\GLIIHUHQWRSHUDWLRQVWKH
25
DQG
;25
FRPPDQGVDUHWKHVDPHDVWKH
$1'
FRPPDQG7KH
127
LQVWUXFWLRQWDNHVRQO\RQHRSHUDQGUHJLVWHURUPHPRU\
(GOLQDVFDQEHXVHGWRFKHFNWKHUHVXOWVRIDSSO\LQJWKHVHFRPPDQGV)RUH[DPSOH
029($;)+
029(%;&+
$1'$/%/
VKRXOGUHVXOWLQWKHVWRUDJHRI&+LQ$/
$OOWKHVHORJLFFRPPDQGVFOHDUWKHRYHUIORZDQGFDUU\IODJV7KH\VHWWKHVLJQIODJLIWKHPRVWVLJQLILFDQWELW
RIWKHUHVXOWLVDQGFOHDULWRWKHUZLVH7KH\VHWWKH]HURIODJLIWKHUHVXOWLVDQGFOHDULWRWKHUZLVH7KH
]HURIODJLVRIWHQXVHGWRGHWHUPLQHFRQGLWLRQDOMXPSVIROORZLQJORJLFFRPPDQGV
)RUH[DPSOHZHFDQXVHWKH
$1'
FRPPDQGWRGHWHUPLQHZKHWKHUDQXPEHUVWRUHGLQDUHJLVWHULVHYHQRU
RGG$QXPEHUUHSUHVHQWHGLQELQDU\LVHYHQZKHQLWVOHDVWVLJQLILFDQWELWLV]HUR,IZHKDYHDRQHE\H
UHJLVWHUWKHQWKH
$1'
LQVWUXFWLRQFDQEHDSSOLHGWRLWXVLQJWKHELQDU\QXPEHUDVWKHVRXUFH
RSHUDQG
7KHQDOOWKHELWVRIWKHUHVXOWZLOOEHH[FHSWSRVVLEO\WKHOHDVWVLJQLILFDQWELW7KLVELWZLOOEHLIWKH
QXPEHUEHLQJWHVWHGLVHYHQ
029%/$/3UHSDUHWRWHVW$/IRUHYHQQHVV
$1'%/7KH]HURIODJLVVHWLI%/
-=(91-XPSLI$/LVHYHQ
7KH
7(67
LQVWUXFWLRQLVOLNHWKH
&03
LQVWUXFWLRQLQWKDWLWVHWVIODJVZLWKRXWVWRULQJWKHUHVXOW
&03
LVDQ
XQVWRUHG
68%
LQVWUXFWLRQ
7(67
LVDQXQVWRUHG
$1'
LQVWUXFWLRQ8VLQJ
7(67
WKHWKUHHLQVWUXFWLRQVXVHGWRWHVW
WKHHYHQQHVVRI$/FDQEHVKRUWHQHGWRMXVWWZR
7(67$/
-=(91-XPSLI$/LVHYHQ
%LW6HWWLQJDQG7HVWLQJ
2QHYLUWXHRIORJLFRSHUDWLRQVLVWKDWWKH\JLYHWKHSURJUDPPHUFRQWURORYHULQGLYLGXDOELWVRIPHPRU\RU
,2UHJLVWHUV
7XUQLQJWKH6SHDNHU2QDQG2II
7KHV\VWHPERDUGVSHDNHULVDQRWKHUUHODWLYHO\IL[HGIHDWXUHRIWKHVWDQGDUG3&,WVDXGLRVLJQDOFRPHVIURP
D0+]VTXDUHZDYH7RJHWFRQWURORYHUWKHVSHDNHUVSLWFKWKLVVLJQDOLVGLYLGHGE\WKHQXPEHU
VWRUHGLQWKHWZRE\WHUHJLVWHUORFDWHGDW,2DGGUHVV+7KLVUHJLVWHUPXVWEHZULWWHQWRXVLQJWZR
VXFFHVVLYHRQHE\WHZULWHVPRVWVLJQLILFDQWE\WHILUVW:KHWKHUWKHVSHDNHULVWXUQHGRQRUQRWLVFRQWUROOHG
E\WKHERWWRPWZRELWVRIDYHU\LPSRUWDQWRQHE\WHUHJLVWHUORFDWHGDW,2DGGUHVV+6RPHRIWKHELWVRI
WKLVUHJLVWHULQGLFDWHSDULW\HUURUVLQPHPRU\5HSRUWVRIWKHVHHUURUVFDXVHWKHV\VWHPWRKDOW&RQVHTXHQWO\
ZHGRQWZDQWWRIOLSRQHRIWKHPLGO\RUDFFLGHQWDOO\7KH
$1'
DQG
25
LQVWUXFWLRQVDUHSHUIHFWO\VXLWHGIRU
FKDQJLQJVRPHELWVDQGOHDYLQJWKHRWKHUVDORQH)RUH[DPSOHWRWXUQWKHVSHDNHURQWKHIROORZLQJWKUHH
FRPPDQGVDUHQHHGHG
FRPPDQGVDUHQHHGHG
,1$/>+@
25$/
287>+@$/
7RWXUQWKHPRII
,1$/>+@
$1'$/2)&+
287>+@$/
ZLOOGR
,WVKRXOGEHQRWHGWKDWLQ/LQX[DFFHVVWR,2SRUWVE\XVHUVLVE\GHIDXOWDWOHDVWSURKLELWHG,2
SHUPLVVLRQVFDQEHJLYHQWRDSURFHVVKRZHYHUE\WKHV\VWHPFDOOV
LRSHUP
DQG
LRSO
ZKLFKDUH
VSHFLDOO\DGDSWHGWRWKH[DUFKLWHFWXUH
(GJHYV/HYHO7ULJJHUHG,54%LWV
7KHSURJUDPPDEOHLQWHUUXSWFRQWUROOHUGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
KDVDUHJLVWHUZKLFK
GHWHUPLQHVZKHWKHUWKHLQWHUUXSWVLWUHFHLYHVZLOOEHSURFHVVHGDVHGJHWULJJHUHGRUOHYHOWULJJHUHG7KHUHLV
RQHELWIRUHDFKRIWKHHLJKW,54OLQHVWKDWLWKDQGOHV7KHGLIIHUHQFHEHWZHHQWKHWZRWULJJHULQJPRGHVLV
LPSRUWDQW,IDQ,2GHYLFHXVHVOHYHOWULJJHUHGVLJQDOLQJDQGWKHWUHDWVLWV,54DVHGJHWULJJHUHGWKHQ
LQWHUUXSWVLJQDOVIURPWKH,2GHYLFHFRXOGEHLJQRUHG%\XVLQJELWPDQLSXODWLRQFRPPDQGVLWLVSRVVLEOHWR
VLQJOHRXWRQHELWRQWKLVUHJLVWHUDQGFKDQJHLW
)RUH[DPSOHVXSSRVHWKDWZHDUHLQVWDOOLQJDFDUGZKLFKVHQGVRXWHGJHWULJJHUHGLQWHUUXSWUHTXHVWVRQ
,54,54LVWKHUHTXHVWOLQHFRQYHQWLRQDOO\DVVRFLDWHGZLWK&202QDQ(,6$PDFKLQHWKHUHJLVWHU
ZKLFKFRQWUROVWKLVWULJJHULQJLVORFDWHGDW,2SRUW'+,WLVFDOOHGDQ(/&5(GJH/HYHO&RQWURO
5HJLVWHU(DFKELWPDNHVWKHFRUUHVSRQGLQJ,54OLQHHGJHWULJJHUHGHDFKELWFDXVHVOHYHOWULJJHULQJ
7KHVLPSOHVWZD\WRPDNH,54HGJHWULJJHUHGZRXOGEHWRZULWHDWRWKLVSRUW
029$/
029(';'+(/&5VDGGUHVVLV'+
287>';@$/6WRUHD]HURLQWKH(/&5
%XWWKLVZRXOGEHDEDGLGHD,WZRXOGPDNHDOOHLJKWELWVLQWKH(/&5$Q\RIWKH,54VZKLFKKDSSHQHG
WRXVHOHYHOWULJJHULQJZRXOGJHWIRXOHGXS7RVHWWKHPDOOFRUUHFWO\ZHPXVWNQRZZKDWDOOWKHWULJJHULQJV
DUHIRUDOOHLJKWLQSXWVRUZHFDQMXVWOHDYHWKHPDVWKH\DUHH[FHSWIRUWKHIRXUWKELW7RPDNHELW]HURZH
FDQ25WKHFRQWHQWVRIWKH(/&5ZLWKWKHELQDU\QXPEHU ()+7RGRWKDWZHQHHGWRUHDG
IURPWKH(/&5GRWKHPDVNLQJDQGWKHQZULWHEDFNWRLW
3URJUDP
029(';'+(/&5VDGGUHVVLV'+
,1$/>';@5HDGWKH(/&5UHJLVWHU
$1'$/()+0DVNRXWELW
287>';@$/:ULWHDOWHUHGE\WHEDFNRXWWRWKH(/&5
'LVDOORZLQJ1RQ²PDVNDEOH,QWHUUXSWV
2Q,6$PDFKLQHVQRQ²PDVNDEOHLQWHUUXSWVFDQEHVWRSSHGEHIRUHWKH\JHWWRWKHSURFHVVRU7KH\UXQ
WKURXJKDJDWHZKLFKLVFRQWUROOHGE\ELWRIDQ,2UHJLVWHUORFDWHGDWSRUW+,IWKLVELWLV10,VDUH
DOORZHG0HPRU\SUREOHPVFDQFDXVHDQRQPDVNDEOHLQWHUUXSWWRRFFXU6XSSRVHWKDWZHZDQWWR
FLUFXPYHQWWKLVVDIHJXDUGE\VKXWWLQJRII10,V7RPDNHELWHTXDOWRZHFDQ25WKHFRQWHQWVRIWKH,2
UHJLVWHUZLWK +
3URJUDP
,1$/>+@5HDGWKHE\WH
25$/+0DVNRXWELW
25$/+0DVNRXWELW
287>+@$/:ULWHDOWHUHGE\WHEDFNRXW
6KLIW,QVWUXFWLRQV
5HJLVWHUVZKLFKFDQVKLIWELWVULJKWRUOHIWDUHFDOOHGVKLIWUHJLVWHUV6XSSRVHWKDWDELWVKLIWUHJLVWHU
FRQWDLQVWKHELQDU\QXPEHU
6KLIWLQJWKLVQXPEHUWRWKHULJKWE\RQHELW\LHOGV
DQGVHWVWKHFDUU\IODJVLQFHWKHULJKWPRVWELWZDV6KLIWUHJLVWHUVDUHSDUWRIWKHVWDQGDUGUHSHUWRLUHRI
PLFURSURFHVVRUV,QWKH[WKHELWZKLFKLVORVWLVJHQHUDOO\VWRUHGLQWKHFDUU\IODJ+HQFHIROORZLQJWKH
VKLIWMXVWVKRZQWKHFDUU\IODJZRXOGEHVHW:KHUHWKHQHZELWFRPHVIURPGHSHQGVRQZKLFKVKLIW
FRPPDQGLVXVHG:KHQWKHQHZELWLVWKHVKLIWLVUHIHUUHGWRDVDORJLFDOVKLIW1RWLFHWKDWVKLIWLQJWKH
QXPEHU
WRWKHULJKWE\RQHELWLQWKLVPDQQHU
\LHOGV$ULJKWZDUGVKLIWPD\WKXVEHXVHGWRDFFRPSOLVKGLYLVLRQE\WZR7KHORJLFDOVKLIWKRZHYHUIDLOV
WRGRWKLVFRUUHFWO\RQVLJQHGQXPEHUV$QHLJKWELWWZRVFRPSOHPHQWYDOXHVXFKDV
ZKHQVKLIWHGWRWKHULJKWE\RQHXVLQJDORJLFDOVKLIW
\LHOGVQRW,IZKDWZHUHDOO\ZDQWLVWRGLYLGHE\WZRWKHQWKHQHZOHIWPRVWELWVKRXOGEHFRSLHG
IURPWKHROGRQH,QWKLVFDVHZHZRXOGJHW
LQVWHDGZKLFKDFWXDOO\LV±7KLVNLQGRIDVKLIWLVUHIHUUHGWRDVDQDULWKPHWLFVKLIWRUVRPHWLPHVDOVRDVD
VLJQH[WHQGHGVKLIW6LQFHDQDULWKPHWLFVKLIWSURGXFHVDQHUURQHRXVGLYLVLRQZKHQDODUJHXQVLJQHGYDOXHLV
XVHGWKHODWWHUWHUPLVDSUREDEO\EHWWHURQH7KHSUREOHPGRHVQRWRFFXUZLWKOHIWZDUGVKLIWV7KH
FRPPDQGVIRUULJKWZDUGORJLFDODQGDULWKPHWLFVKLIWVDUH
6+5UHJLPP
6+5UHJ&/
6$5UHJLPP
6$5UHJ&/
ZKHUHWKHLPPHGLDWHYDOXHPXVWEHDRQHE\WHQXPEHU/HIWZDUGVKLIWVXVHWKHPQHPRQLFV
6+/
DQG
6$/
7KHVHWZRPQHPRQLFVDFWXDOO\UHIHUWRWKHVDPHRSFRGHV7KH\KDYHWKHVDPHYDOLGIRUPVDV
6+5
DQG
6$5
,QDOOWKHVHFDVHVDPHPRU\RSHUDQGPD\UHSODFHWKHUHJLVWHURSHUDQG
:KHQWKHORVWELWLVUHF\FOHGDVWKHQHZELWWKHVKLIWLVUHIHUUHGWRDVDURWDWH
52/
DQG
525
DUH
PQHPRQLFVIRUURWDWHOHIWDQGURWDWHULJKW-XVWDVLQWKHORJLFDODQGDULWKPHWLFVKLIWVWKHFDUU\IODJWDNHVRQ
WKHYDOXHRIWKHURWDWHGELW%XWLWGRHVQRWSDUWLFLSDWHLQWKHURWDWLRQ7RLQFOXGHWKHFDUU\ELWLQWRWKHF\FOH
XVHWKH
5&5
DQG
5&/
FRPPDQGV
5&/
DQG
5&5
UHIHUWRURWDWHWKURXJKFDUU\OHIWDQGURWDWHWKURXJKFDUU\ULJKW
7DEOH
LOOXVWUDWHVWKHHIIHFWRIHDFKRIWKHVHURWDWHLQVWUXFWLRQVDVVXPLQJWKDWEHIRUHWKHURWDWH
LOOXVWUDWHVWKHHIIHFWRIHDFKRIWKHVHURWDWHLQVWUXFWLRQVDVVXPLQJWKDWEHIRUHWKHURWDWH
LQVWUXFWLRQLVH[HFXWHG$/LVDQG&)
6KLIWUHJLVWHUVDUHXVHGE\WKHSURFHVVRUWRSHUIRUPPXOWLSOLFDWLRQ7KHSURFHVVRUGRHVQRWKDYHD
PXOWLSOLFDWLRQFRPPDQG%XWLWGRHVKDYHVKLIWFRPPDQGV$SURJUDPOLNHWKHIROORZLQJFDQEHXVHGWRGR
PXOWLSOLFDWLRQXVLQJVKLIWFRPPDQGV
3URJUDP
,1($;>@
029(&;($;PXOWLSOLHU
,1($;>@
029(%;($;PXOWLSOLFDQG
;25($;,QLWLDOL]HWKHWRWDO
$*1&03(&;,VPXOWLSOLHU\HW"
-('81
7(67(&;,VERWWRPELWRIPXOWLSOLHU
-=6.3,IVRDGGWKHPXOWLSOLFDQG
$''($;(%;$GGVKLIWHGPXOWLSOLFDQGWRWKHWRWDO
-&%$'$FDUU\KHUHLVDQRYHUIORZ
6.36+/(%;0XOWLSOLFDQGJRHVOHIW
-&%$'%HWWHUQRWRYHUIORZKHUHHLWKHU
6+5(&;6KLIWWKHPXOWLSOLHUWRWKHULJKW
-03$*1
'81287>@($;
%$'5(71RRXWSXWLIPXOWLSOLFDWLRQRYHUIORZV
&KDSWHU'(9,&('5,9(56
,Q
FKDSWHU
WKHXVHRIPHPRU\FRPPDQGVZDVGLVFXVVHGDVVXPLQJWKDWWKHSURJUDPPHUKDVXQUHVWULFWHG
DFFHVVWRPHPRU\,Q
FKDSWHU
WKHXVHRIPHPRU\FRPPDQGVLQXVHUSURJUDPVZKHUH/LQX[UHVWULFWV
PHPRU\DFFHVVLVGLVFXVVHG,Q
FKDSWHU
VHFWLRQ
WKHXVHRI,2FRPPDQGVLVGLVFXVVHGDJDLQDVVXPLQJ
WKDWWKHSURJUDPPHUKDVXQUHVWULFWHG,2DFFHVV$OWKRXJKWKHUHDUHV\VWHPFRPPDQGVZKRVHSXUSRVHLVWR
JUDQW,2DFFHVVWRDXVHUWKHGHIDXOWVLWXDWLRQLQ/LQX[GLVDOORZVWKHXVHRI
,1
DQG
287
LQVWUXFWLRQVLQXVHU
SURJUDPV8VHUDFFHVVWRSHULSKHUDOVWDNHVSODFHRQO\E\ZD\RIV\WHPFDOOV6\VWHPFDOOVWUDQVODWHXVHU
VHUYLFHUHTXHVWVLQWR
,1
DQG
287
LQVWUXFWLRQV%HFDXVHV\VWHPFDOOVH[HFXWHDWSULYLOHJHOHYHO]HURWKHVH,2
LQVWUXFWLRQVFDQEHH[HFXWHG
$GHYLFHGULYHUFRQVLVWVRIDOOWKHSURJUDPVQHHGHGWRWUDQVODWHV\VWHPFDOOVWRDSDUWLFXODUGHYLFHLQWR,2
LQVWUXFWLRQVWRWKDWGHYLFHSOXVDSURJUDPWRKDQGOHLQWHUUXSWVHUYLFHUHTXHVWVLVVXHGE\WKHGHYLFH$OOWKH
SURJUDPVLQWKHGHYLFHGULYHUDUHLQFRUSRUDWHGLQWRWKH/LQX[NHUQHO2YHUKDOIWKHFRGHLQ/LQX[LVGHYLFH
GULYHUFRGH
7KHUHLVDORWRIFRGHLQYROYHGEHFDXVHWKHUHLVDORWRIYDULHW\LQWKHKDUGZDUHGHYLFHVEHLQJDFFHVVHG,WLVD
QRWDEOHDFKLHYHPHQWRI8QL[WKDWWKLVJUHDWPXOWLSOLFLW\RIKDUGZDUHLVEURXJKWXQGHUWKHFRQWURORIDVPDOO
UHSHUWRLUHRIVLPSOHFRPPDQGV$QLPSRUWDQWVWDJHLQWKHGHYHORSPHQWRIWKLVUHSHUWRLUHZDVWKHFRQFHSWRI
DGHYLFHLQGHSHQGHQWILOH
'HYLFH,QGHSHQGHQW)LOHV
7RXQGHUVWDQGZKDWGHYLFHLQGHSHQGHQFHPHDQVLWLVXVHIXOWRFRQVLGHUKRZZHPLJKWQDLYHO\EHJLQWR
7DEOH5RWDWH,QVWUXFWLRQVRQ$/ &)
%HIRUH
6KLIW
$IWHU
$/5HJLVWHU
&)
&RPPDQG
$/5HJLVWHU
&)
525$/
52/$/
5&5$/
5&/$/
7RXQGHUVWDQGZKDWGHYLFHLQGHSHQGHQFHPHDQVLWLVXVHIXOWRFRQVLGHUKRZZHPLJKWQDLYHO\EHJLQWR
SURJUDPDFFHVVWRDQRUGLQDU\0HJIORSS\GULYHZLWKRXWWKHDLGRIWKLVXVHIXOFRQFHSW
)ORSS\'ULYH&RQWUROOHU
$IORSS\GULYHLQFOXGHVDPRWRUDQGDVHQVLQJDUPDQGLVFRQWUROOHGE\DSURFHVVRUFDOOHGDIORSS\GULYH
FRQWUROOHU6HH
)LJXUH
0DQ\IORSS\GULYHFRQWUROOHUVDUHFRPSDWLEOHZLWKWKHFRQWUROOHU,QWKH
,6$DUFKLWHFWXUHWKHFRPSDWLEOHFRQWUROOHULVDVVLJQHG,2SRUWV)2+WKURXJK)+$FFHVVWRWKH
IORSS\LVE\ZD\RIWKHVHSRUWV
)LJXUH7KH)ORSS\'ULYHDVDQ,2'HYLFH
$0HJIORSS\LVFDUYHGXSLQWRVPDOOSRUWLRQVE\WKHIORSS\GULYH(DFKVLGHRIWKHIORSS\KDV
FRQFHQWULFFLUFOHVOLNHWKHULQJVRIDWDUJHW7KHVHULQJVDUHFDOOHGWUDFNV(DFKVLGHLVDOVRGLYLGHGE\UDGLL
LQWRSLHFHVZKLFKDUHVKDSHGOLNHSL]]DVOLFHV(DFKWUDFNPRYHVWKURXJKDOORIWKHVHSL]]DVOLFHV(DFK
SRUWLRQRIRQHWUDFNRQRQHSL]]DVOLFHLVFDOOHGDVHFWRU(DFKVHFWRUFRQWDLQVE\WHVRIGDWD7KHWRWDO
FDSDFLW\RIWKHGLVNLV
7RJHWUHDGRUZULWHDFFHVVWRWKHGLVNDFRPPDQGPXVWEHLVVXHGWRWKH7KHFRPPDQGSRUWLVDWWKH
,6$DGGUHVV)++LVD5($'FRPPDQGLQWKHODQJXDJH,WPXVWEHIROORZHGE\HLJKWE\WHV
ZKLFKVSHFLI\DPRQJRWKHUWKLQJVZKLFKWUDFNZKLFKVHFWRUDQGZKLFKVLGHRIWKHGLVNZLOOEHUHDG$OO
UHDGFRPPDQGVUHDGDWOHDVWRQHIXOOVHFWRU7RUHDGVHFWRUQXPEHUILYHRQF\OLQGHUQXPEHUVL[RQVLGH
QXPEHURQHIRUH[DPSOHWKHIROORZLQJ
287
LQVWUXFWLRQVZRXOGQHHGWREHLVVXHG
$OWKRXJKWKLVFRGHDFFHVVHVE\WHVDOLWWOHDULWKPHWLFVKRZVWKDWIURPDSURFHVVRUVSRLQWRIYLHZLWLV
QRWDFFHVVHGDOODWRQFH6SLQQLQJDWUSPRUILYHUHYROXWLRQVSHUVHFRQGDIORSS\GULYHGULYHFDQFROOHFW
7KLVPHDQVE\WHVDUHFROOHFWHGHYHU\VHFRQGVRUPLFURVHFRQGV2QD0+]PDFKLQHWKLVLV
DZDLWRIPDFKLQHF\FOHVFOHDUO\WRRPXFKWLPHWRNHHSWKHSURFHVVRULGOLQJ7KLVLVDJRRGH[DPSOH
RIDVLWXDWLRQZKHUHDQLQWHUUXSWFDQVDYHWLPH(DFKWLPHWKHKDVDFFXPXODWHGRQHE\WHRILQIRUPDWLRQ
IURP
3URJUDP
029$/+'DWD5HDGFRPPDQG
287>)+@$/
287>)+@$/
029$/6LGH'ULYH$
287>)+@$/
029$/7KH&\OLQGHUQXPEHU
287>)+@$/
029$/6LGHDJDLQ
287>)+@$/
029$/7KH6HFWRUQXPEHU
287>)+@$/
029$/6HFWRUVL]HFRGHIRUE\WHV
287>)+@$/
029$//DVW6HFWRUQXPEHU
287>)+@$/
029$/*DSVL]H
287>)+@$/
029$/2))+8QXVHGVSHFLDO6HFWRUVL]HFRGH
287>)+@$/
WKHIORSS\GULYHLWVLJQDOVWKHV\VWHPWRWDNHWKHLQIRUPDWLRQ,WPD\XVH,54WRGRWKLV,Q
VHFWLRQ
ZHZLOOILQGWKDWDQRWKHUZD\RIKDQGOLQJWKHLQSXWKDVEHHQGHYHORSHGZKLFKLVHYHQOHVVZDVWHIXORI
SURFHVVRUWLPH
%DG2OG)LOHV
7KHIDFWWKDWLQIRUPDWLRQLVKDQGOHGXVLQJDEVROXWHDGGUHVVHVRQHVHFWRUDWDWLPHVWDQGVRXWLQRXU
SURJUDPPLQJRIWKHIORSS\GULYH6SDFHRQWKHGLVNLVXVHGLQFKXQNVRIE\WHV,WZRXOGEHYHU\QDWXUDO
WKHQLIDOO0HJIORSS\GLVNILOHVKDGOHQJWKVZKLFKZHUHPXOWLSOHVRIE\WHVDQGZHUHUHIHUHQFHG
XVLQJWKHDEVROXWHDGGUHVVHVRIWKHVHFWRUVZKLFKWKH\RFFXSLHG,WZRXOGDOVREHQDWXUDOWRVWRUHWKH
LQIRUPDWLRQDERXWZKLFKVHFWRUVZHUHRFFXSLHGLQWRWKHILOHDORQJZLWKWKHUHVWRIWKHLQIRUPDWLRQ7KLV
NLQGRILQIRUPDWLRQFRQVWLWXWHGZKDWZDVFDOOHGDILOHFRQWUROEORFN,Q8QL[WKLVNLQGRILQIRUPDWLRQLVKHOG
E\WKHV\VWHPLQVSHFLDOV\VWHPPHPRU\DUHDVFDOOHGLQRGHVDQGLVQRWLQWHJUDWHGZLWKWKHGDWDLQWKHILOH
:KHQWKLVNLQGRILQIRUPDWLRQLVLQFOXGHGDVDSDUWRIWKHGDWDHOHPHQWDU\RSHUDWLRQVVXFKDVFRS\LQJDILOH
IURPRQHGHYLFHWRDQRWKHUEHFRPHSUREOHPDWLF)LOHFRS\LQJSURJUDPVEHFRPHGHYLFHVSHFLILFMXVWDV
SURJUDPVWRFRQYHUWZRUGSURFHVVRUGRFXPHQWVDUHVRIWZDUHSDFNDJHVSHFLILF&RS\LQJDILOHFDQHDVLO\
FKDQJHLWVOHQJWKIRUH[DPSOH5HVLGXDOSUREOHPVRIH[DFWO\WKLVQDWXUHH[LVWLQFRQQHFWLRQZLWKWH[WILOHVLQ
&ZKHUHOLQHERXQGDULHVPD\EHPDUNHGHLWKHUE\V\VWHPLQIRUPDWLRQ²WKHGHYLFHKROGLQJWKHILOHPD\
KDYHDQLQWULQVLFOLQHVWUXFWXUH²RUE\HQGRIOLQHFKDUDFWHUV?QZKLFKDUHLQWHUQDOWRWKHGDWDILOH&RS\LQJ
WH[WILOHVLQ&LVQRWJXDUDQWHHGWRSUHVHUYHOHQJWK2QHUHDVRQWKDWWKH&SUHSURFHVVRUFRQFDWHQDWHVVWULQJV
LVVRWKDWLQWULQVLFHQGRIOLQHERXQGDULHVFDQEHRYHUFRPH7KH6WDQGDUG&/LEUDU\E\-LP3ODXJHULWVWLWOH
QRWZLWKVWDQGLQJFRQWDLQVVRPHIDVFLQDWLQJKLVWRULFDODVLGHVRQWKHVHLVVXHV
7KHSRLQWKHUHLVWKDWWKHVH
EDGROGILOHV
DUHVKDSHGE\WKHGHYLFHVRQZKLFKWKH\DUHVWRUHG$GHYLFH
LQGHSHQGHQWILOHRQWKHRWKHUKDQGEHDUVQRLPSULQWRIWKHGHYLFHRQZKLFKLWLVVWRUHG$GHYLFH
LQGHSHQGHQWILOHFDQEHFRSLHGIURPRQHGHYLFHWRDQRWKHUZLWKRXWXQGHUJRLQJFKDQJH'HYLFHLQGHSHQGHQW
ILOHVRULJLQDWHGLQWKH0XOWLFVRSHUDWLQJV\VWHPWKHLPPHGLDWHSUHGHFHVVRURI8QL[
'LUHFW0HPRU\$FFHVV
7KHUHDGHULQWHUHVWHGLQJHWWLQJRQWRGHYLFHGULYHUVPD\VNLSDKHDGWR
VHFWLRQ
7KHUHDGHUFXULRXV
DERXWZKDWNHHSVWKHIORSS\GULYHRURWKHUSHULSKHUDOVIRUWKDWPDWWHUIURPLQWHUUXSWLQJWKHSURFHVVRUDIWHU
HYHU\IHWFKHGE\WHVKRXOGUHDGWKHQH[WWZRSDUDJUDSKV
,QDGGLWLRQWRWKH,54OLQHWKHDOVRKDVDQRXWSXWOLQHFDOOHG'0$54IRU'0$UHTXHVW'0$VWDQGV
IRUGLUHFWPHPRU\DFFHVV,QVWHDGRIXVLQJWKH,54OLQHWKHPD\EHSURJUDPPHGWRXVHWKH'0$54
OLQHLQVWHDG7KH'0$54OLQHUXQVIURPWKHWRDSURFHVVRUFDOOHGD'0$FRQWUROOHUZKLFKLVHTXLSSHG
WRLVVXHEXVFRQWUROVLJQDOVDQGWKXVLQLWLDWH0HPRU\:ULWHEXVF\FOHV,WFDQWKHUHIRUHUHOLHYHWKH&38RI
WKHWDVNRIWUDQVIHUULQJE\WHVRQHDWDWLPHIURPWKHIORSS\GULYHLQWRPHPRU\,QRUGHUWKDWWKHXVHRIWKH
EXVF\FOHPDFKLQHU\E\WKH'0$FRQWUROOHUQRWLQWHUIHUHZLWKWKH&38ZKLFKLVFRQVWDQWO\XVLQJWKHEXVHV
WRIHWFKLQVWUXFWLRQVWKHUHLVD+2/'OLQHUXQQLQJIURPWKH'0$FRQWUROOHUWRWKH&38DQGD+2/'$
KROGDFNQRZOHGJHOLQHUXQQLQJIURPWKH&38WRWKH'0$FRQWUROOHU7RXVHWKHEXVHVWKH'0$
FRQWUROOHUPXVWDVNIRUSHUPLVVLRQXVLQJWKH+2/'OLQHDQGUHFHLYHLWRQWKH+2/'$OLQH,QFLGHQWDOO\WKH
SURJUDPPHUPD\LQVWUXFWWKH&38WRZLWKKROGSHUPLVVLRQE\XVLQJWKH
/2&.
SUHIL[
SURJUDPPHUPD\LQVWUXFWWKH&38WRZLWKKROGSHUPLVVLRQE\XVLQJWKH
/2&.
SUHIL[
6HWWLQJXSD'0$WUDQVIHUUHTXLUHVPRUHZRUNRQWKHSDUWRIWKHSURJUDPPHUWKDQVHWWLQJXSDE\WH
UHDG&RPPDQGVPXVWEHLVVXHGWRERWKWKH'0$FRQWUROOHUDQGWKHIORSS\FRQWUROOHUEXWLWUHVXOWVLQ
VDYLQJDJUHDWGHDORI&38WLPH
6LQFHDQ\GHYLFHZKLFKWUDQVIHUVEORFNVRIGDWDWRDQGIURPPHPRU\FDQWDNHDGYDQWDJHRI'0$VHUYLFHWR
DYRLGSODFLQJXQQHFHVVDU\GHPDQGVRQWKHSURFHVVRUD'0$KDQGOLQJFLUFXLWYHU\VLPLODUWRWKHLQWHUUXSW
KDQGOLQJFLUFXLWVKRZQLQ
)LJXUH
ZLWKD0DVWHUDQGD6ODYH'0$FRQWUROOHUH[LVWVLQWKH,6$
DUFKLWHFWXUH7KHUHLVD'0$54OLQHIRUHDFKGHYLFHZKLFKJHWV'0$VHUYLFH7KHVH'0$OLQHVDUHFDOOHG
'0$FKDQQHOV
)LJXUH)ORSS\&RQWUROOHU8VLQJ'0$LQVWHDGRIDQ,QWHUUXSW
'HYLFHVDV)LOHV
$GHYLFHLQGHSHQGHQWILOHLVDOLVWRIE\WHVZLWKDQDPHDQGWKDWVDOOLWLV$VVXFKLWLVDQDEVWUDFWLRQ,W
VRRQSURYHGWREHDYHU\XVHIXODEVWUDFWLRQ,PPHGLDWHO\LQWKHZDNHRIWKHGHYLFHLQGHSHQGHQWILOHFRQFHSW
IROORZHGDQRWKHULQQRYDWLRQRIWKH0XOWLFVRSHUDWLQJV\VWHP7KLVZDVWKHLGHDWKDWLWVKRXOGEHSRVVLEOHIRU
DSURJUDPPHUWRWUHDW,2GHYLFHVSULQWHUVWHUPLQDOVHWFDVGHYLFHLQGHSHQGHQWILOHV7KLVLGHDLVWKH
EDVLVRIWKH8QL[GHYLFHGULYHU,QSXWWLQJGDWDIURPDGHYLFHFDQWKHQEHGRQHMXVWDV\RXZRXOGUHDGIURP
DILOH2XWSXWLQJGDWDWRDGHYLFHFDQEHGRQHMXVWDV\RXZRXOGZULWHWRDILOH7XUQLQJILOHRSHUDWLRQVLQWR
JHQHULFGHYLFHRSHUDWLRQVPDNHVXVLQJGHYLFHVHDV\IRUWKHDSSOLFDWLRQVSURJUDPPHUDQGDOVRFODULILHVWKH
UROHRIWKHGHYLFHGULYHU,WVUROHLVWRSURYLGHWKHNHUQHOZLWKGHYLFHVSHFLILFYHUVLRQVRI
UHDGZULWH
RSHQ
HWFWKDWFDQEHDFFHVVHGZKHQLWLVSURFHVVLQJWKRVHJHQHULFV\VWHPFDOOVZKLFKFRPHIURPXVHU
SURJUDPV
)RUH[DPSOHLQ
VHFWLRQ
ZKHUHD0RUVHFRGHVSHDNHUGHYLFHLVGHILQHGWKHIXQFWLRQ
FTBZULWH
LV
GHILQHG7KLVIXQFWLRQLVFDOOHGE\WKHNHUQHOZKHQWKHV\VWHPFDOO
ZULWH
LVXVHGWRDFFHVVWKH0RUVH
&RGHVSHDNHU7KLVPLJKWKDSSHQIRUH[DPSOHZKHQDXVHUVHQGVDVWULQJRIWH[WWRWKHVSHDNHU
OLQX[ER[HFKR+HOORZRUOG!GHYFT
%HFDXVHPRVWGHYLFHVDUHLGLRV\QFUDWLFLQDWOHDVWVRPHUHVSHFWRURWKHUWKHUHPXVWEHURRPOHIWRYHUIRU
IHDWXUHVWKDWGRQRWILWLQWRWKHJHQHULFUHDGDQGZULWHW\SHV\VWHPFDOOV7KHV\VWHPFDOO
LRFWO
LV
GHVLJQHGWRWDNHFDUHRIWKHVHOHIWRYHUV(DFKLGLRV\QFUDWLFIHDWXUHLVDVVLJQHGDXQLTXHQXPEHUFDOOHGD
PDJLFQXPEHU$QLGLRV\QFUDWLFIHDWXUHRIWKHVSHDNHUIRUH[DPSOHLVLWVSLWFK:KHQ
LRFWO
FDOOVWKH
VSHDNHUIXQFWLRQFTBLRFWOXVLQJWKHFRUUHFWPDJLFQXPEHUWKHSLWFKVHWWLQJIXQFWLRQLVFDOOHG
7KHFRQQRWDWLRQVRIWKHWHUPPDJLFQXPEHUDUHXQIRUWXQDWHSXWWLQJDVWKH\GRDQDXUDRIP\VWHU\DURXQGD
PHUHGHWDLODQGYDOXHRQSULYLOHJHGLQIRUPDWLRQZKHUHDYDOXHRQRSHQQHVVZRXOGEHPRUHVRFLDOO\
UHVSRQVLEOH6WXSLGQXPEHUZRXOGEHEHWWHU%XWEHWKDWDVLWPD\PDJLFQXPEHUVDUHDWOHDVWQRWKDUGWR
ILQG7KH\DUHE\FRQYHQWLRQJLYHQLQGHILQHVWDWHPHQWVZKHUHWKHLUXVDJHLVH[SODLQHG326,;
FRQYHQWLRQVUHTXLUHWKDWPDJLFQXPEHUVEHQRWRQO\XQLTXHIRUDGHYLFHEXWV\VWHPZLGHXQLTXH
,QWKHIROORZLQJVHFWLRQVWZRH[DPSOHVRIGHYLFHGULYHUVDUHSUHVHQWHG7KHSXUSRVHRIWKHVHH[DPSOHVLVWR
VKRZZKDWLVLQYROYHGLQZULWLQJDGHYLFHGULYHUZKLFKLQFRUSRUDWHVVRPHDVVHPEO\FRGH7KHILUVWGULYHULV
DWR\,WVUHDVRQIRUH[LVWHQFHLVWRVHUYHDVDQH[DPSOHRIDGHYLFHGULYHU7KHVHFRQGGULYHUZDVZULWWHQLQ
UHVSRQVHWRDUHTXHVWIURPDIULHQGZKRQHHGHGWRLQSXWGDWDIURPDQH[WHUQDOGHYLFHDVSDUWRIDUHVHDUFK
SURMHFWLQYROYLQJWKHPHDVXUHPHQWRIOL]DUGPHWDEROLFUDWHV7KHJRDORIWKHUHVHDUFKLVDEHWWHU
XQGHUVWDQGLQJWKHPHFKDQLVPE\ZKLFKHQYLURQPHQWDOYDULDWLRQVEULQJDERXWOL]DUGVSHFLDWLRQDQGDOVR
H[WLQFWLRQV6RDOWKRXJKLWLVQRWDELJSURJUDPLWLVQRWMXVWDWR\7KHPDLQIHDWXUHWKHVHFRQGGULYHUKDV
WKDWWKHILUVWRQHGRHVQRWKDYHLVWKDWLWLQVWDOOVLWVRZQLQWHUUXSWKDQGOHU7KH0RUVH&RGHGULYHUPHUHO\
DGGVVRPHFKRUHVWRWKRVHRIDQDOUHDG\LQVWDOOHGKDQGOHU
0RUVH&RGH6SHDNHU'ULYHU
7KHEDVLFVWUXFWXUHZKLFKLVXVHGWRFRQQHFWGHYLFHVSHFLILFIXQFWLRQVVXFKDV
FTBZULWH
ZLWKWKHLU
JHQHULFFRXQWHUSDUWVVXFKDV
ZULWH
LVWKHILOHRSHUDWLRQVVWUXFWXUH
7KH
ILOHBRSHUDWLRQV
6WUXFWXUH
7KHGHILQLWLRQRIWKLVVWUXFWXUHLVLQ
XVUVUFOLQX[LQFOXGHOLQX[IVK
$VLPSOLILHGYHUVLRQRILWLV
JLYHQKHUH
VWUXFWILOHBRSHUDWLRQV
^
ORQJORQJOOVHHN
LQWUHDG
LQWZULWH
LQWUHDGGLU
LQWSROO
LQWLRFWO
LQWPPDS
LQWRSHQ
LQWIOXVK
LQWUHOHDVH
LQWIV\QF
LQWIDV\QF
LQWFKHFNBPHGLDBFKDQJH
LQWUHYDOLGDWH
LQWORFN
`
$OOWKHFRPSRQHQWVRIWKLVVWUXFWXUHDUHSRLQWHUVWRIXQFWLRQV7KHIXQFWLRQQDPHVDUHJLYHQH[DFWO\EXW
WKHLUSDUDPHWHUGHFODUDWLRQVDUHRPLWWHGDQGWKHUHWXUQW\SHVDUHJLYHQXVLQJDIDPLOLDUEXWQRQSRUWDEOH[
YHUVLRQHJ
LQW
LQVWHDGRIWKHPRUHSRUWDEOH
VVL]HBW
7KHXVHRIW\SHVVXFKDV
VVL]HBW
KRZHYHU
YDOXDEOHIRUWKHVDNHRIJHWWLQJWKHVDPHFRGHWRFRPSLOHDQGUXQRQGLIIHUHQWDUFKLWHFWXUHVKDVDVHULRXV
GRZQVLGHZKHQLWFRPHVWRUHDGLQJWKHFRGH)RUH[DPSOHWRFKDVHGRZQWKHGHILQLWLRQRI
VVL]HBW
ZH
QHHGWRILQG
W\SHGHIBBNHUQHOBVVL]HBWVVL]HBW
LQ
XVUVUFOLQX[LQFOXGHOLQX[W\SHVK
DQGWKHQ
W\SHGHILQWBBNHUQHOBVVL]HBW
LQ
XVUVUFOLQX[LQFOXGHDVPLSRVL[BW\SHVK
/HDUQLQJDQRSHUDWLQJV\VWHPVKRXOGQRWWXUQ
LQWRDQH[HUFLVHLQXVLQJWKH
JUHS
FRPPDQG
7KHFUHDWLRQRIDQLQVWDQFHRI
VWUXFWILOHRSHUDWLRQV
IRUDSDUWLFXODUGHYLFHLVWKHNH\WRZULWLQJD
GHYLFHGULYHU7KHELJJHVWSDUWRIZULWLQJWKHGULYHULVGHILQLQJWKHIXQFWLRQVLQWKLVVWUXFWXUH7KHVH
IXQFWLRQVKDQGOHWKHV\VWHPFDOOVZKLFKUHVXOWLQFDOOVIURPWKHV\VWHPWRWKHGHYLFH+DQGOLQJFDOOVIURPWKH
GHYLFHWRWKHV\VWHPUHTXLUHVVHWWLQJXSDQLQWHUUXSWKDQGOHURUDVLQWKHFDVHRIWKH0RUVH&RGHVSHDNHU
GULYHUSLJJ\EDFNLQJRIIRIDQH[LVWLQJLQWHUUXSWKDQGOHU1RWDOORIWKHIXQFWLRQVQDPHGLQWKH
VWUXFW
ILOHBRSHUDWLRQV
VWUXFWXUHDUHQHHGHGLQHYHU\GHYLFH8QQHHGHGFRPSRQHQWVPD\VLPSO\EHGHILQHGDV
ILOHBRSHUDWLRQV
VWUXFWXUHDUHQHHGHGLQHYHU\GHYLFH8QQHHGHGFRPSRQHQWVPD\VLPSO\EHGHILQHGDV
18//
)RUWKH0RUVH&RGHGULYHUWKHIROORZLQJGHFODUDWLRQVHWVXSWKHQHHGHGILOHRSHUDWLRQVVWUXFWXUH
VWDWLFVWUXFWILOHBRSHUDWLRQVFTBIRSV
^
FTBOVHHN
18//FTBUHDG
FTBZULWH
18//FTBUHDGGLU
18//FTSROO
FTBLRFWO
18//FTBPPDS
FTBRSHQ
18//FTIOXVK
FTBUHOHDVH
`
7KHFRGLQJIRUWKHVHFRPSRQHQWIXQFWLRQVLVJLYHQLQ
VHFWLRQ
7KHRPLWWHGFRPSRQHQWVIROORZLQJ
FTBUHOHDVH
PD\EHVDIHO\OHIWWRJFFZKLFKILOOVWKHPLQZLWKWKHYDOXH
18//
3URJUDP
YRLGGHOD\LQWL
^
9(5<URXJKO\GHOD\E\LKXQGUHGWKVRIDVHFRQG
L L0XOWLSO\E\DPLOOLRQ
ZKLOHL!L L&RXOGEHMXVWRQHLQVWUXFWLRQ
0DQ\LQVWUXFWLRQVWDNHMXVWRQHFORFNF\FOH
2QD0+]PDFKLQHRQHPLOOLRQFORFNF\FOHVWDNHVHF
`
7LPLQJ8VLQJ'HOD\/RRSV
%HIRUHJHWWLQJLQWRWKHGHWDLOVRIWKHLQGLYLGXDOIXQFWLRQVKRZHYHULWZRXOGEHZRUWKZKLOHWRWDNHDQ
RYHUYLHZRIKRZWKHZKROHWKLQJZRUNV,QDQXQSURWHFWHGVLQJOHXVHUV\VWHPVXFKDVLQ'26IRUH[DPSOH
ZHFRXOGWXUQWKHVSHDNHURQDQGRIIDWZLOOXVLQJ
,1
DQG
287
LQVWUXFWLRQV7KHWLPLQJRIWKHRQVDQGRIIV
FRXOGEHPDQDJHGXVLQJGHOD\ORRSVDVVKRZQLQ
3URJUDP
7KHWLPHVSHQWLQWKHVHGHOD\ORRSVZRXOG
QRWEHDELJSUREOHPVLQFHDVDVLQJOHXVHUV\VWHPWKHPDFKLQHZRXOGSUREDEO\QRWEHGRLQJDQ\WKLQJHOVH
DQ\ZD\
:HFRXOGDOVRXVHWKLVWHFKQLTXHLQD/LQX[GHYLFHGULYHU7KHUHLVQRWKLQJWRVWRSXV
3URJUDP
VKRZV
WKHUHVXOW+RZHYHULQD/LQX[GHYLFHGULYHUWKLVFRGHZRXOGEHWHUULEOH/LQX[GRHVQRWLQWHUUXSWNHUQHO
FRGH6LQFHGHYLFHGULYHUVDUHSDUWRIWKHNHUQHOWKLVFRGHZRXOGQHYHUJHWWLPHGRXW,WZRXOGPRQRSROL]H
WKHV\VWHP
,QVWHDGRIVWUDQJOLQJWKHFRPSXWHUWKHGULYHUQHHGVWROHWJRRIWKH&38DQGUHVFKHGXOHLWVHOIIRUH[HFXWLRQ
DWDODWHUWLPH7KHGULYHUFDQGRWKLVE\WDNLQJDGYDQWDJHRIH[LVWLQJ/LQX[V\VWHPUHVRXUFHVLQWKLVFDVH
WKHV\VWHPWLPHU7KHV\VWHPWLPHULVDFORFNZKLFKLQWHUUXSWVWKHSURFHVVRUHYHU\VHFRQG,WXVHV,54
,Q/LQX[DOOLQWHUUXSWVDUHFRXQWHGDQGWKHFRXQWVDUHGLVSOD\HGLQWKH
SURFLQWHUUXSWV
GLUHFWRU\
7KHFRXQWHUIRUWKHWLPHULQWHUUXSWLVFDOOHG
MLIILHV
DQGLWVYDOXHLVGLVSOD\HGDORQJZLWKWKHRWKHULQWHUUXSW
FRXQWV:KHQWKH,65IRUWKLVLQWHUUXSWH[HFXWHVLWFKHFNVDTXHXHRIMREVZKLFKKDYHDVFKHGXOHGH[HFXWLRQ
WLPH7KLVTXHXHLVFDOOHGWKHWLPHUTXHXH
7KH7LPHU4XHXH
8VLQJWKHWLPHUTXHXHLVQRWGLIILFXOW(DFKWLPHUTXHXHHQWU\LVOLNHDKDQG\OLWWOHRUGHUIRUP,WKDV
VWUXFWXUHVKRZQLQ
)LJXUH
:KHQVXEPLWWLQJDQRUGHU\RXILOOLQWKHODVWWKUHHLWHPVDQGOHDYHWKHILUVW
WZREODQN
)LJXUH'HILQLWLRQRIWKH7LPHU4XHXH
)LJXUH'HILQLWLRQRIWKH7LPHU4XHXH
3URJUDP
ZKLOH&RGHQRWGRQH!
^
LI'RWVWDUWV!
^
VSHDNHUBRQ
GWLPH
`
HOVHLI'DVKVWDUWV!
^
VSHDNHUBRQ
GWLPH
`
HOVHLI'RWRU'DVKVWRSV!
^
VSHDNHUBRII
GWLPH
`
GHOD\GWLPH
GWLPHLVKRZORQJWRUXQWKHGHOD\ORRS
`
z
QH[W
DQG
SUHY
DUHW\SLFDOGRXEO\OLQNHGOLVWSRLQWHUV2QDVXEPLWWHGMREWKH\VKRXOGEHVHWWR
18//
7KH\DUHUHVHWODWHUE\/LQX[ZKHQWKHHQWU\LVOLQNHGLQWRWKHWLPHUTXHXH
z
H[SLUHV
LVWKHWLPHLQ
MLIILHV
ZKHQWKHMRELVVXSSRVHGWREHJLQH[HFXWLQJ
z
7KH
IXQFWLRQ
FRPSRQHQWLVWKHMREWREHGRQH$VLWVQDPHLPSOLHVLWLVMXVWDSRLQWHUWRDIXQFWLRQ
:KHQWKHWLPHVSHFLILHGLQ
H[SLUHV
DUULYHVWKHIXQFWLRQSRLQWHGDWE\
IXQFWLRQ
JHWVFDOOHG
z
7KH
GDWD
FRPSRQHQWLVWKHDUJXPHQWSDVVHGWRWKHIXQFWLRQSRLQWHGDWE\
IXQFWLRQ
7RVXEPLWRQHRIWKHVHRUGHUIRUPVWR/LQX[\RXFDOOWKHDGGBWLPHUIXQFWLRQRQDSRLQWHUWRLW7KDWVDOO
WKHUHLVWRXVLQJWKHWLPHUTXHXH
3URJUDP
YRLGFTBWLPHUBKDQGOHUXQVLJQHGORQJ[
^
XQVLJQHGORQJGWLPH
XQVLJQHGORQJGWLPH
GWLPHLVKRZORQJWRZDLWRQWKHWLPHUTXHXH
LI&RGHQRWGRQH!
^
LI'RWVWDUWV!
^
VSHDNHUBRQ
GWLPH
`
HOVHLI'DVKVWDUWV!
^
VSHDNHUBRQ
GWLPH
`
HOVHLI'RWRU'DVKVWRSV!
^
VSHDNHUBRII
GWLPH
`
FTBWLPHU!H[SLUHV MLIILHVGWLPH
FTBWLPHU!IXQFWLRQ FTBWLPHUKDQGOHU
+HUHFTBWLPHUBKDQGOHULVDGGLQJLWV
RZQQDPHWRWKHWLPHUTXHXHHQWU\IRUP
DGGBWLPHUFTBWLPHU
1RZVXEPLWWKHTXHXHHQWU\
`
`
,IZHXVHWKHWLPHUTXHXHWRIL[
3URJUDP
3URJUDP
UHVXOWV,WLVHVVHQWLDOO\WKHVDPHDV
3URJUDP
H[FHSWWKDWLWH[LWVSURPSWO\DIWHULWWXUQVWKHVSHDNHURQRURIILQVWHDGRIKRJJLQJWKH&38,WUHOLHVRQ
WKHWLPHULQWHUUXSWWRJHWLWVHOIFDOOHGDJDLQODWHU7KH
GDWD
FRPSRQHQWRIWKH
VWUXFWWLPHUBOLVW
VWUXFWXUH
LVQRWXVHG2QFHWKLVFRGHLVFDOOHGLWXVHVWKHWLPHUWRFDOOLWVHOIEDFNDJDLQ,WLVDOLWWOHOLNHUHFXUVLRQ
H[FHSWWKDWLWGRHVQRWFDOOLWVHOIGLUHFWO\EXWLQGLUHFWO\E\VHQGLQJLWVQDPHWRWKHWLPHUTXHXH6LQFHDQ\
IXQFWLRQFDQDGGWKLVHQWU\WRWKHWLPHUTXHXHWKHUHLVQRSUREOHPJHWWLQJLWVWDUWHG,QIDFWWKLVLVGRQHE\
FTBZULWH
'HYLFH0HPRU\
7KHQH[WSUREOHPZHIDFHLQZULWLQJWKLVGULYHULVPHPRU\DFFHVV7KHPHPRU\ODEHOVYDULDEOHQDPHVDQG
IXQFWLRQQDPHVXVHGLQ
3URJUDP
DUHUHIHUHQFHGZKHQWKH,65IRULQWHUUXSWLVH[HFXWHG7KLV
LQWHUUXSWPD\RFFXUGXULQJWKHUXQQLQJRIDQ\SURFHVV7KHSDJHWDEOHVLQHIIHFWDWWKDWWLPHDUHWKRVH
EHORQJLQJWRZKDWHYHUSURFHVVKDSSHQVWREHUXQQLQJDWWKDWWLPH,WQHHGQRWEHWKHSURFHVVWKDWLVVHQGLQJ
WH[WWRWKHVSHDNHU
1RWHWKDWLQWKHXQFRGHGSRUWLRQVRI
3URJUDP
VXFKDV'RWVWDUWV!RU&RGHQRWGRQH!WKHUHPXVWEH
UHIHUHQFHVWRWKHWH[WEHLQJVHQWWRWKHVSHDNHU7KLVWH[WLVORFDWHGLQPHPRU\EHORQJLQJWRWKHSURFHVV
ZKLFKRULJLQDOO\FDOOHGWKHGHYLFHGULYHU+RZHYHUJHWWLQJDFFHVVWRWKLVPHPRU\LVDSUREOHP7KHSUREOHP
LVQRWDFFHVVULJKWVLWLVILQGLQJDXVDEOHDGGUHVV7KHRQO\DGGUHVVZHKDYHIRUWKLVWH[WLVGHILQHGUHODWLYH
WRDVHWRISDJHWDEOHVWKDWDUHSRLQWHGDWE\D&5YDOXHWKDWLVQRWORDGHGLQWR&5.HUQHOSULYLOHJHVGR
QRWVROYHWKLVSUREOHP'RLQJDWDVNVZLWFKEDFNWRWKHFDOOLQJSURFHVVZRXOGUHVWRUHWKH&5YDOXHQHHGHG
WRDFFHVVWKHSDJHWDEOHVEXWLIDOOZHQHHGWRGRLVWRWXUQWKHVSHDNHURQRURIIWKHQWKLVZRXOGEHD
ULGLFXORXVZDVWHRIWLPH
$JRRGVROXWLRQWRWKLVSUREOHPLVWRVHWDVLGHVRPHNHUQHOPHPRU\IRUWKHGHYLFHDQGKDYH
FTBZULWH
FRS\IURPWKHXVHUVPHPRU\LQWRWKHGHYLFHVPHPRU\8QOLNH
FTBWLPHUBKDQGOHUFTBZULWH
LV
FDOOHGLQUHVSRQVHWRDXVHUVV\VWHPFDOODQGH[HFXWHVZKLOHWKHXVHUVSDJHWDEOHVDUHVWLOOLQHIIHFW$WWKDW
WLPHORFDWLQJWKHWH[WLVQRWDSUREOHP%XWOLNH
FTBWLPHUBKDQGOHU
LWH[HFXWHVZLWKNHUQHOSULYLOHJHVR
LWKDVWKHULJKWVQHHGHGWRDFFHVVNHUQHOPHPRU\
6LQFHNHUQHODGGUHVVHVDUHVKDUHGV\VWHPZLGHWKH\DUHYDOLGQRPDWWHUZKDWSURFHVVLVUXQQLQJ)RU
H[DPSOHZHFDQORRNXSWKHDGGUHVVRI
MLIILHV
RU
DGGBWLPHU
DQ\WLPHZHZDQWE\GRLQJD
JUHS
VXFKDV
OLQX[ER[JUHSMLIILHV6\VWHPPDS
(VVHQWLDOO\DOOGHYLFHVQHHGVRPHPHPRU\RIWKHLURZQLQRUGHUWRIXQFWLRQ7KHVWUXFWXUHZKRVHGHILQLWLRQ
LVVKRZQLQ
)LJXUH
VHWVDVLGHGHYLFHPHPRU\QHHGHGIRUWKHVSHDNHUGULYHU7KHFRPSRQHQWVRIWKLV
VWUXFWXUHDUH
)LJXUH'HYLFH0HPRU\IRU6SHDNHU
z
IODJV
7KHELWVRIWKHIODJVFDUU\LQIRUPDWLRQDERXWWKHVWDWHRIWKHGHYLFH
GHILQH&4B(;,67[
GHILQH&4B%86<[
GHILQH&4B2))[
7KH
&4B(;,67
ELWPHUHO\LQGLFDWHVWKDWWKHGHYLFHGULYHULVLQVWDOOHG7KH
&4B%86<
ELWLVXVHGWRNHHS
PRUHWKDQRQHSURFHVVIURPXVLQJWKHGHYLFHDWWKHVDPHWLPH7KLVELWLVFKHFNHGZKHQ
RSHQ
LV
FDOOHGRQWKHGHYLFH%ORFNLQJRWKHUSURFHVVHVIURPXVLQJ
GHYFT
GRHVQRWEORFNWKHPIURPXVLQJ
WKHVSHDNHU$FWUO*DEHHSVHQWWRWKHWHUPLQDOZLOOVWLOOJHWWKURXJK$WUXHVSHDNHUGHYLFHGULYHU
ZRXOGQRWOHWWKLVKDSSHQ$OONHUQHOFRGHDFFHVVLQJWKHVSHDNHUZRXOGEHUHURXWHGWKURXJKWKH
VSHDNHUGULYHU%XWVLQFHHPHUJHQF\FRGHQHHGVGLUHFWDFFHVVWRWKHVSHDNHUWKLVZRXOGQRWEH
GHVLUDEOH7KH
&4B2))
ELWLQGLFDWHVWKDWWKHGHYLFHGULYHUKDVWKHVSHDNHUWXUQHGRIIDWWKHPRPHQW
7KLVELWLVFKHFNHGHYHU\WLPH
FTBWLPHUBKDQGOHU
LVFDOOHG7KHVHGHILQLWLRQVDUHDOZD\VLQVHUWHG
LQWRDKHDGHUILOHDVVRFLDWHGZLWKWKHGHYLFH,QWKLVFDVHWKHILOHQDPH
FTK
LVPRUHRUOHVVLQHYLWDEOH
z
WLPHUGLY
7KH
WLPHUGLY
FRPSRQHQWKROGVWKHYDOXHRIWKHWLPHUGLYLVRUZKLFKGHWHUPLQHVWKHSLWFK
RIWKHVSHDNHU3XWWLQJWKLVQXPEHULQWRGHYLFHPHPRU\DOORZVWKHSLWFKWREHUHVHWHYHU\WLPHWKH
0RUVHVSHDNHULVXVHGWKXVSURWHFWLQJLWIURPEHLQJFKDQJHGE\DFWUO*IURPVRPHRWKHUSURFHVVDQG
VWLOOEHPRGLILDEOHXVLQJ
LRFWO
z
ZKROHQRWH
6LPLODUO\WKH
ZKROHQRWH
FRPSRQHQWKROGVDXQLWWLPHYDOXHWKDWLVXVHGDVWKHEDVLVIRU
FDOFXODWLQJDOOWKHRWKHUWLPHYDOXHVLQWKHSURJUDP$OWHULQJWKLVYDOXHFKDQJHVWKHRYHUDOOUDWHDW
ZKLFKWKH0RUVH&RGHFRPHVRXWRIWKHVSHDNHU,WLVJLYHQLQWHUPVRIWKHGXUDWLRQRIRQHPXVLFDO
ZKROHQRWH
z
EXIIHU>&4B%8))(5B6,=(@
7KHEXIIHU
EXIIHU>&4B%8))(5B6,=(@
KROGVWKHWH[WIURPWKHFDOOLQJ
SURFHVV7KLVLVWKHWH[WZKLFKLVLQWKHSURFHVVRIEHLQJVHQWWRWKHVSHDNHU7KHIDFWWKDWWH[WLVVWRUHG
KHUHLQNHUQHOPHPRU\LVZKDWPDNHVLWXQQHFHVVDU\WRGRDWDVNVZLWFKHYHU\WLPHWKHVSHDNHULV
UHDG\IRUDQRWKHUOHWWHU
z
PFRGH
7KHSRLQWHU
PFRGH
NHHSVWUDFNRIZKHUHLQWKHVWULQJRIGRWVDQGGDVKHVIRUWKHFXUUHQW
FKDUDFWHUZHDUH
z
EXIIHUBRIIVHW
7KH
EXIIHUBRIIVHW
FRPSRQHQWSLFNVRXWZKLFKFKDUDFWHULQWKHEXIIHUWKHVSHDNHU
LVFXUUHQWO\ZRUNLQJRQ
z
EXIIHUBHQG
7KH
EXIIHUBHQG
PDUNVWKHHQGRIWKHFXUUHQWEXIIHUORDG,WLVXVXDOO\MXVWWKHVDPHDV
z
EXIIHUBHQG
7KH
EXIIHUBHQG
PDUNVWKHHQGRIWKHFXUUHQWEXIIHUORDG,WLVXVXDOO\MXVWWKHVDPHDV
&4B%8))(5B6,=(
%XWLQFDVHWKHEXIIHULVJLYHQRQO\DSDUWLDOORDG
EXIIHUBHQG
DOORZVWKHGULYHUWR
TXLWRQWLPHZLWKRXWUXQQLQJDOOWKHZD\WRWKHHQGRIWKHEXIIHU
z
FTBZDLWBT
7KHODVWFRPSRQHQW
FTBZDLWBT
LVWKHUHEHFDXVHDOWKRXJKWKHWH[WEXIIHU
EXIIHU
>&4B%8))(5B6,=(@
LVDJRRGLGHDLWGRHVQRWFRPSOHWHO\VROYHWKHSUREOHPRIDFFHVVLQJWKHXVHUV
WH[W:KHQDOOWKHWH[WLQWKHEXIIHUKDVEHHQVHQWWRWKHVSHDNHUDQGWKHUHLVPRUHWRJRWKHQZHUH
EDFNZKHUHZHZHUHEHIRUHZKHQZHKDGQREXIIHUWU\LQJWRJHWDKROGRIXVHUVWH[WZKHQWKHXVHUV
SURFHVVLVQRWUXQQLQJDQGKHQFHWKHXVHUVDGGUHVVVSDFHLVQRWIXQFWLRQDO
7KHEXIIHULQGHYLFHPHPRU\GRHVQRWHOLPLQDWHWKHQHHGWRGRWDVNVZLWFKHV,WFDQRQO\UHGXFHWKHQXPEHU
RIWKHWKHP,WFDQGRWKLVE\PDNLQJWKHEXIIHUODUJHU7KHELJJHUWKHEXIIHUWKHOHVVRIWHQDWDVNVZLWFKLV
QHHGHG%XWDELJJHUEXIIHULQFUHDVHVWKHVL]HRINHUQHOPHPRU\:HKDYHKHUHDW\SLFDOWLPHYVVSDFHWUDGH
RII
7KHXVHUFDOOHGSURFHVVZKLFKILOOVWKHEXIIHUDQGWKHWLPHUKDQGOHUZKLFKHPSWLHVWKHEXIIHUDUHDQ
H[DPSOHRIZKDWLVFDOOHGDSURGXFHUFRQVXPHUSDLU
:DLW4XHXHV
:DLWTXHXHVZHUHGHVLJQHGWRDOORZSURFHVVHVWRVXVSHQGRSHUDWLRQLVVXFKDZD\WKDWWKH\FDQEHHDVLO\
UHDFWLYDWHGZKHQQHHGHG)RUH[DPSOHDSURGXFHUFDQVXVSHQGRSHUDWLRQZKHQLWKDVSURGXFHGDVXUSOXV
DQGEHUHDFWLYDWHGE\DFRQVXPHUZKHQWKHVXSSO\LVH[KDXVWHG
$SURFHVVPD\VXVSHQGLWVRZQRSHUDWLRQE\FDOOLQJ
VOHHSBRQ
,WFDQEHUHDFWLYDWHGXVLQJ
ZDNHBRQ
,QWKHFDVHRIRXUVSHDNHUGULYHUWKHSURGXFHU
FTBZULWH
ILOOV
FTBDUHDEXIIHU
WKHVSHDNHUVWH[WEXIIHU
DQGFRXOGFDOO
VOHHSBRQ
DVVRRQDVLWZDVGRQH:KHQWKHWLPHUKDQGOHU
FTBWLPHUBKDQGOHU
KDVXVHG
XSDEXIIHUORDGE\VHQGLQJLWRIIWRWKHVSHDNHULWFRXOGFDOOWKHIXQFWLRQ
ZDNHBXS
WRJHW
FTBZULWH
WR
ILOOWKHEXIIHUEDFNXSDJDLQ
)URPWKHQDPH
ZDNHBXS
ZHPLJKWJHWWKHLGHDWKDWDQLPPHGLDWHWDVNVZLWFKZRXOGEHLQLWLDWHG,QIDFW
ZKDWKDSSHQVLVWKDWWKHSURFHVVUXQQLQJ
FTBZULWH
JHWVSXWEDFNRQDTXHXHFDOOHGWKHUXQTXHXHZKLFK
FRQVLVWVRIDOOSURFHVVHVZKLFK
3URJUDP
FTBZULWH)LOH!XQ
^
7KLVSURJUDPSXWVLWVHOIWRVOHHS
DIWHULWILOOVGHYLFHPHPRU\
LQWNWRWDO
ZKLOHWRWDOQ
^
N &4B%8))(5B6,=(
FRS\BIURPBXVHUFTBDUHDEXIIHUNX
DGGBWLPHUFTBWLPHU6WDUWWLPHUKDQGOHU
WRWDO WRWDON
VOHHSBRQFTBDUHDZDLWBT
`
`
FTBWLPHUBKDQGOHXQVLJQHGLQW[
^
7KLVSURJUDPZDNHVXSWKHXVHU
SURFHVVZKHQGHYLFHPHPRU\LVHPSW\
7XUQVSHDNHURQRURII!
LI&KDUDFWHUGRQH!
^
FTBDUHDEXIIHUBRIIVHW FTBDUHDEXIIHUBRIIVHW
LIFTBDUHDEXIIHUBRIIVHW FTDUHDEXIIHUBHQG
LIFTBDUHDEXIIHUBRIIVHW FTDUHDEXIIHUBHQG
^
FTBDUHDEXIIHUBRIIVHW
ZDNHBXSFTBDUHDZDLWBT
UHWXUQ1RIXWXUHVFKHGXOLQJGRQHKHUH
`
DGGBWLPHUFTBWLPHU&RQWLQXHFDOOLQJWLPHUKDQGOHU
`
`
DUHFXUUHQWO\WDNLQJWXUQVXVLQJWKHSURFHVVRU(DFKWLPHDQRWKHUSURFHVVRQWKHUXQTXHXHWDNHVLWVWXUQRQ
WKHSURFHVVRUWKHUHKDVWREHDWDVNVZLWFKRIFRXUVH
%RWK
VOHHSBRQ
DQG
ZDNHBXS
PXVWEHFDOOHGRQDQDUJXPHQWZKRVHW\SHLV
VWUXFWZDLWBTXHXH
DSRLQWHUWRWRDSRLQWHUWRDZDLWTXHXHVWUXFWXUH$OWKRXJKWKLVVRXQGVKRUULEOHLWLVUHDOO\QRSUREOHPWRVHW
XSRQHRIWKHVHWKLQJV7KHGHILQLWLRQRID
VWUXFWZDLWBTXHXH
LV
LQ
XVUVUFOLQX[LQFOXGHOLQX[ZDLWK
%XWDFWXDOO\WRXVHDZDLWTXHXHZHGRQWQHHGWRNQRZDQ\WKLQJDERXWLWVLQWHUQDOV$VORQJDVZHFDOO
ZDNHBXS
RQWKHVDPHSRLQWHUWKDWZHJLYHWR
VOHHSBRQ
ZHUHDOOVHW7KH
ZDLWBT
FRPSRQHQWRIRXU
VWUXFWFTBVWUXFW
JLYHVXVDVLQJOHSRLQWHUWRDZDLWTXHXHVWUXFWXUH6LQFH
FTBZULWH
XVHV
VOHHSBRQ
DQG
FTBWLPHUBKDQGOHU
XVHV
ZDNHBXS
WKHQWKHZDLWTXHXHGRXEOHSRLQWHUPXVWEHORFDWHGLQD
SODFHZKHUHERWKIXQFWLRQVFDQDGGUHVVLW7KLVLVDQRWKHUH[DPSOHZKHUHGHYLFHPHPRU\FRPHVLQKDQG\
7KDWLVZK\WKHZDLWTXHXHSRLQWHULVORFDWHGWKHUH$SRLQWHUWRWKLVSRLQWHUWKHQJLYHVXVWKHDUJXPHQWWKDW
ZHQHHG
FTBDUHDZDLWBT
3URJUDP
VKRZVKRZWKH
VOHHSBRQ
DQG
ZDNHBXS
FDOOVZRUNWRJHWKHU,Q
3URJUDP
FTBZULWH
FDOOV
VOHHSBRQ
DVVRRQDVLWKDVILOOHGWKHGHYLFHEXIIHULQNHUQHOPHPRU\
FTBWLPHUBKDQGOH
ZDNHV
XSWKHVOHHSLQJ
FTBZULWH
SURFHVVZKHQLWKDVHPSWLHGWKHGHYLFHEXIIHU
1RZWKDWZHFDQSURJUDPWKHQHFHVVDU\WDVNVZLWFKHVZHDUHLQDSRVLWLRQWRZULWHDZRUNDEOHGULYHU
8QIRUWXQDWHO\WKHGULYHUDVRXWOLQHGVRIDUZRXOGKDYHDVHULRXVIDLOLQJ,WZRXOGQRWUHVSRQGWRZKDWDUH
FDOOHGVLJQDOV
6LJQDOV
3URFHVVHVLQ8QL[KDYHDKDQGIXORIGLIIHUHQWPHFKDQLVPVDYDLODEOHWRFRPPXQLFDWHZLWKHDFKRWKHU2QHRI
WKHVHLVWKHVHQGLQJRIVLJQDOV:KHQDSURFHVVLVNLOOHGZLWKDFWUO&RUD
NLOO
FRPPDQGWKHSURFHVVKDV
UHFHLYHGDVLJQDO7RH[SODLQZKDWDVLJQDOLVZHQHHGWRH[SDQGDOLWWOHRQWKHQRWLRQRIDWDVN:HKDYH
GHVFULEHGWKHWDVNVWDWHVHJPHQWDVDUHJLRQRIPHPRU\ZKHUHUHJLVWHUVJHWVDYHGZKHQDWDVNVZLWFKRFFXUV
7KHWDVNVWDWHVHJPHQWLVPDLQWDLQHGE\WKHKDUGZDUH%XWLWLVRQO\DSDUWRIWKHFRQWH[WXDOLQIRUPDWLRQWKDW
LVPDLQWDLQHGE\/LQX[IRUHDFKSURFHVV7KHUHLVDVWUXFWXUHFDOOHGD
VWUXFWWDVNBVWUXFW
GHILQHG
LQ
XVUVUFOLQX[LQFOXGHOLQX[VFKHGK
ZKLFKNHHSVDOOWKHLQIRUPDWLRQ/LQX[QHHGVRQDSURFHVV
7KLVLQIRUPDWLRQLVDYDLODEOHWRWKHGHYLFHGULYHUZKHQLWLVH[HFXWLQJLQEHKDOIRIDSURFHVVEHFDXVHWKHUHLV
DJOREDOYDULDEOHLQNHUQHOPHPRU\FDOOHG
FXUUHQW
ZKRVHYDOXHLVDOZD\VWKHWDVNVWUXFWXUHIRUWKHFXUUHQW
SURFHVV,QWKHGULYHUIRU
GHYFT
IRUH[DPSOHLWPDNHVVHQVHWRDFFHVVWKLVYDULDEOHIURP
FTBZULWH
EXW
QRWIURP
FTBWLPHUBKDQGOH
2QHRIWKHFRPSRQHQWVRI
VWUXFWWDVNBVWUXFW
LV
WVV
WKHKDUGZDUHV
WDVNVWDWHVHJPHQW7KH
SLG
FRPSRQHQWLVWKH3URFHVV,'QXPEHUZKLFKVKRZVXSZKHQ
SV
LVUXQ,WLV
QHHGHGZKHQNLOOLQJMREVIURPWKHFRPPDQGOLQH$QRWKHUFRPSRQHQWRI
VWUXFWWDVNBVWUXFW
LV
VLJQDO
7KLVFRPSRQHQWLVFXUUHQWO\W\SHGDVDQDUUD\RILQWHJHUV(DFKELWRQHDFKLQWHJHULQWKHDUUD\FDQFDUU\D
VLJQDO:LWKWZRELWLQWHJHUVLQWKHDUUD\/LQX[LVFRQILJXUHGIRUDPD[LPXPRIVLJQDOV:KDWHYHUWKH
VXEWOHGLVWLQFWLRQVDUHEHWZHHQDOORIWKHVHGLIIHUHQWVLJQDOVUHFHLYLQJDVLJQDOPHDQVMXVWRQHWKLQJWRD
GHYLFHGULYHULWVWLPHWRTXLW
'ULYHUVWKDW&DQW%H.LOOHG
7KHVLJQDOBSHQGLQJFDOOFKHFNVWKH
VLJQDO
FRPSRQHQWRIWKHSURFHVVIRUQRQ]HURELWV,WLVWKH
UHVSRQVLELOLW\RIWKHZULWHURIWKHGHYLFHGULYHUWRPDNHVXUHWKLVLVGRQHDQGWRJRDKHDGDQGTXLWLIVXFKELWV
DUHIRXQG)DLOXUHWRGRVRUHVXOWVLQDGHYLFHGULYHUWKDWFDQWEHNLOOHG7KLVLVDQHDV\PLVWDNHWRPDNHDQG
DVHULRXVRQH0XOWLWDVNLQJLQ/LQX[LVVRPHWLPHVFDOOHGFRRSHUDWLYHPXOWLWDVNLQJ8VHUWDVNVZKLFKH[HFXWH
DVHULRXVRQH0XOWLWDVNLQJLQ/LQX[LVVRPHWLPHVFDOOHGFRRSHUDWLYHPXOWLWDVNLQJ8VHUWDVNVZKLFKH[HFXWH
ZLWKNHUQHOSULYLOHJHVXFKDV
FTBZULWH
DUHH[SHFWHGWR\LHOGWRWKHSURFHVVRUYROXQWDULO\,IWKH\GRQW
WKHVFKHGXOHUZRQWIRUFHWKHPWRGRVR,QRUGHUWRIXOILOOWKLVUHVSRQVLELOLW\WKHGULYHUPXVWLQFOXGHFRGH
VXFKDV
LIVLJQDOBSHQGLQJFXUUHQW
UHWXUQYDOXH
DWSRLQWVLQWKHFRGHZKLFKZLOOEHHQFRXQWHUHGIUHTXHQWO\HQRXJKVRWKDWZDLWLQJIRUWKHGHYLFHGULYHUWR
DUULYHDWWKHVHSRLQWVDVLWH[HFXWHVZLOOQRWFDXVHXQGXHGHOD\
2QHPRUHGHWDLOQHHGVIL[LQJLQRUGHUWRPDNHVXUHWKHGULYHUUHVSRQGVWRVLJQDOV
6WDWHVRID3URFHVV
$YHU\LPSRUWDQWFRPSRQHQWRI
VWUXFWWDVNBVWUXFWLVVWDWH
,WVPRVWLPSRUWDQWYDOXHVDUHDVVLJQHG
LQ
XVUVUFOLQX[LQFOXGHOLQX[VFKHGK
GHILQH7$6.B5811,1*
GHILQH7$6.B,17(55837,%/(
GHILQH7$6.B81,17(55837,%/(
GHILQH7$6.B=20%,(
GHILQH7$6.B67233('
7DVNVZKLFKDUHRQWKHUXQTXHXHLHWKRVHZKLFKDUHQRZWDNLQJWXUQVXVLQJWKHSURFHVVRUKDYH
7$6.B5811,1*
DVWKHYDOXHRIWKHLU
VWDWH
FRPSRQHQW:KHQDWDVNSXWVLWVHOIRQWRDZDLWTXHXH
VWDWH
PD\
WDNHHLWKHU
7$6.B,17(55837,%/(
RU
7$6.B81,17(55837,%/(
DVYDOXHV$QGLWPDNHVDELJGLIIHUHQFH
$OWKRXJKZHPLJKWUHDVRQDEO\VXSSRVHWKDWWKHGLIIHUHQFHKDVWRGRZLWKLQWHUUXSWVLWGRHVQW,WKDVWRGR
ZLWKVLJQDOV
,I
VWDWH
KDVWKHYDOXH
7$6.B81,17(55837,%/(
WKHQLWV
VLJQDO
FRPSRQHQWZLOOQRWEHDOWHUHGE\D&WUO&
RUD
NLOO
8QIRUWXQDWHO\WKLVLVWKHYDOXHDVVLJQHGWR
VWDWH
E\WKH
VOHHSBRQ
IXQFWLRQ)RUWXQDWHO\WKHUH
LVDFORVHO\UHODWHGIXQFWLRQFDOOHG
VOHHSBRQBLQWHUUXSWLEOH
ZKLFKDVVLJQVWKHYDOXH
7$6.B,17(55837,%/(
WR
VWDWH
+HQFHLQ
3URJUDP
WKHFDOOVWR
VOHHSBRQ
DQG
ZDNHBXS
QHHGWR
EHUHSODFHGE\WKHLULQWHUUXSWLEOHFRXQWHUSDUWV2WKHUZLVHZHZRXOGKDYHWKHVDPHSUREOHPWKDWZHZRXOG
JHWLIZHRPLWWHGWKHVLJQDOBSHQGLQJFKHFN7KHGHILQLWLRQVRIWZRVOHHSBRQIXQFWLRQVDUHGHILQHG
LQ
XVUVUFOLQX[NHUQHOVFKHGF
DVZHOODVWKHPDLQSDUWRI
ZDNHBXS
7KHWZRZDNHBXSPDFURVDUH
GHILQHGLQ
XVUVUFOLQX[LQFOXGHOLQX[VFKHGK
,QWKHGLJLWL]HUGULYHULQ
VHFWLRQ
ZDNHBXSBLQWHUUXSWLEOH
PDFURGHILQLWLRQPXVWEHFRQVXOWHGWR
ILQGRXWWKHDFWXDOIXQFWLRQFDOOVLQFHWKHJFFSUHSURFHVVRULVQWXVHGE\1$60
7KHPDLQIHDWXUHVRIWKH0RUVH&RGHVSHDNHUGULYHUDUHQRZLQSODFHVRZHFDQGRWKHIXQSDUWQH[W
7LPLQJWKH0RUVH&RGH
7KHWLPLQJRIGRWVDQGGDVKHVLVDQDUWQRWDVFLHQFH$0RUVH&RGHGULYHUKDVJRRGWLPLQJLILWVRXQGV
ULJKWWRD0RUVH&RGHSUDFWLWLRQHU7LPHYDOXHVLQWKLVGULYHUDUHEDVHGRQWKHIROORZLQJUXOHV
z
$OOWLPHYDOXHVDUHEDVHGRQWKHGXUDWLRQRIWKH
ZKROHQRWH
FRPSRQHQWRI
FTBDUHD
ZKLFKLVJLYHQLQ
KXQGUHGWKVRIDVHFRQGRU
MLIILHV
z
$GDVKLVRQHIRXUWKRID
ZKROHQRWH
z
$GRWLVRQHVL[WHHQWKRID
ZKROHQRWH
z
4XLHWLQWHUYDOVEHWZHHQGRWVDQGGDVKHVRIDOHWWWHUDUHRQHHLJKWKRID
ZKROHQRWH
4XLHWLQWHUYDOVEHWZHHQOHWWHUVDUHWKUHHHLJKWKVRID
z
4XLHWLQWHUYDOVEHWZHHQOHWWHUVDUHWKUHHHLJKWKVRID
ZKROHQRWH
z
$FKDUDFWHUQRWLQFOXGHGLQWKH0RUVH&RGHJHWDVLOHQWLQWHUYDORIRQHTXDUWHURID
ZKROHQRWH
$VVHPEO\/DQJXDJH6SHDNHU&RGH
7RWXUQWKHVSHDNHURQDQGRIIWKHWZROLWWOHDVVHPEOHUURXWLQHVVKRZQLQ
3URJUDP
DUHXVHG$OWKRXJK
WKHEXONRIWKHGHYLFHGULYHULVZULWWHQLQ&WKLVLVRIWHQWKHFDVH0DQ\WLPHVVPDOOURXWLQHVDUHFRGHGLQ
DVVHPEO\ODQJXDJHDQGWKHUHVWLVFRGHGLQDKLJKHUOHYHOODQJXDJH
,IWKHILOHFRQWDLQLQJ
3URJUDP
LVFDOOHG
VSHDNDVP
LWFDQWKHQE\DVVHPEOHGXVLQJ1$60
OLQX[ER[QDVPIHOIVSHDNDVP
7KH
IHOI
VZLWFKGHWHUPLQHVWKHIRUPDWRIWKHUHVXOWLQJREMHFWFRGHILOHFDOOHG
VSHDNR
,WVKRXOGEH
VWRUHGLQ
XVUVUFOLQX[GULYHUVFKDU
3URJUDP
JOREDOVSHDNHURQ
JOREDOVSHDNHUBRII
H[WHUQFTBDUHD
6<63HTX+6\VWHPSRUWIRUFRQWUROOLQJVSHDNHUIHHG
',95(*HTX+3RUWIRUWLPHUGLYLVRU
VSHDNHUBRII
,1$/>6<63@
$1'$/)&+
287>6<63@$/
029($;>FTBDUHD@
25($;
029>FTBDUHD@($;
5(7
VSHDNHUBRQ
029($;>FTBDUHD@
WLPHUGLYLVRIIVHWE\
287>',95(*@$/
6+5($;
287>',95(*@$/
,1$/>6<63@
25$/
287>6<63@$/
029($;>FTBDUHD@
$1'($;)))))))%+
029>FTBDUHD@($;
5(7
&/DQJXDJH'ULYHU&RGH
3URJUDP
LQFOXGHOLQX[HUUQRK!1HHGWKLVIRU(12'(9HWF
LQFOXGHOLQX[NHUQHOK!1HHGWKLVIRUSULQWN
LQFOXGHOLQX[PDMRUK!1HHGWKLVIRU&4B0$-25
LQFOXGHOLQX[VFKHGK!1HHGWKLVIRUVOHHSLQJDQGZDNLQJ
LQFOXGHDVPXDFFHVVK!1HHGWKLVIRUFRS\BIURPBXVHU
LQFOXGHOLQX[FTK!1RWHWKHFTILOH
YRLGFTBWLPHUBKDQGOHUXQVLJQHGORQJ
VWDWLFYRLGFTBVHWBSLWFKXQVLJQHGORQJ
VWDWLFYRLGFTBVHWBWHPSRXQVLJQHGORQJ
YRLGVSHDNHUBRQYRLG
YRLGVSHDNHUBRIIYRLG
YRLGVSHDNHUBRIIYRLG
FKDUPRUVHBFRGH>@ ^
`
7KHHPSW\VWULQJIROORZHGE\WKHOHWWHUFRGHV
IROORZHGE\WKHQXPHUDOFRGHVIROORZHGE\WKHFRPPD
SHULRGDQGTXHVWLRQPDUN
VWUXFWFTBVWUXFWFTDUHD ^^`18//`
VWUXFWWLPHUBOLVWFTBWLPHU ^18//18//FTBWLPHUBKDQGOHU`
LQOLQHFKDUPFRGHVWULQJLQWDVFLLFRGH
^
FKDUPF
7KLVLVWKHPDSSLQJIURPWKH$6&,,FRGH
LQWRWKHPFRGHDUUD\RIVWULQJV
LIDVFLLFRGH!3DVW]
PF PRUVHBFRGH>&4B'()$8/7@
HOVHLIDVFLLFRGH!8SSHUFDVH
PF PRUVHBFRGH>DVFLLFRGH@
HOVHLIDVFLLFRGH!8QFRGHGSXQFWXDWLRQ
PF PRUVHBFRGH>&4B'()$8/7@
HOVHLIDVFLLFRGH!/RZHUFDVH
PF PRUVHBFRGH>DVFLLFRGH@
HOVHLIDVFLLFRGH 4XHVWLRQ0DUN
PF PRUVHFRGH>@
HOVHLIDVFLLFRGH!8QFRGHGSXQFWXDWLRQ
PF PRUVHBFRGH>&4B'()$8/7@
HOVHLIDVFLLFRGH!1XPHUDOV
PF PRUVHBFRGH>DVFLLFRGH@DVFLLFRGH
HOVHLIDVFLLFRGH 3HULRG
PF PRUVHBFRGH>@
HOVHLIDVFLLFRGH &RPPD
PF PRUVHBFRGH>@
HOVH
PF PRUVHBFRGH>&4B'()$8/7@
UHWXUQPF
`
VWDWLFLQWFTBUHVHWYRLG
^
VSHDNHUBRII
FTBVHWBSLWFK&4B'()B3,7&+3LWFKLQ+]
FTBVHWBWHPSR&4'()7(0324XDUWHUQRWHHTXDOVWKLV
UHWXUQ
`
YRLGFTBWLPHUBKDQGOHUXQVLJQHGORQJ[
^
7KLVLVWKHIXQFWLRQZKLFKLVFDOOHGEHFDXVH
LWVQDPHLVVXEPLWWHGWRWKHWLPHUTXHXH
LQWVWDWXV
XQVLJQHGLQWWLPHBYDOXH
WLPHBYDOXH MLIILHV0ROOLI\JFF
VWDWXV FTBDUHDIODJV
LIFTBDUHDPFRGH VWDWXV&4B2))
FTDUHDEXIIHUBRIIVHW FTBDUHDEXIIHUBHQG
7KLVEXIIHUORDGLVGRQH
^
ZDNHBXSBLQWHUUXSWLEOHFTBDUHDFTBZDLWBT
UHWXUQ
`
LIFTBDUHDPFRGH VWDWXV&4B2))
7KLVFKDUDFWHULVGRQH5HVHWPFRGH
^
FTBDUHDEXIIHUBRIIVHW FTBDUHDEXIIHURIIVHW
[ FTBDUHDEXIIHU>FTBDUHDEXIIHUBRIIVHW@
FTBDUHDPFRGH PFRGHVWULQJ[
`
LIFTBDUHDPFRGH VWDWXV&4B2))
3UHFHGLQJLIEORFNSXWLQWKHHPSW\VWULQJ
(PSW\VWULQJJHWVDTXDUWHUQRWH
^
WLPHBYDOXH FTBDUHDZKROHQRWH!!
`
HOVHLIVWDWXV&4B2))
6SHDNHULVRII%HJLQDQRWKHUGRWRUGDVK
^
LIFTBDUHDPFRGH B
WLPHBYDOXH FTBDUHDZKROHQRWH!!
HOVHLIFTBDUHDPFRGH
WLPHBYDOXH FTBDUHDZKROHQRWH!!
FTBDUHDPFRGH FTBDUHDPFRGH
VSHDNHUBRQ
`
HOVHLIFTBDUHDPFRGH
6SHDNHULVRQ(QGRIFKDUDFWHU
^
WLPHBYDOXH
FTBDUHDZKROHQRWH!!FTBDUHDZKROHQRWH!!
LQWHUOHWWHUUHVW
VSHDNHUBRII
`
HOVH6SHDNHULVRQ,QWKHPLGVWRIDFKDUDFWHU
^
WLPHBYDOXH FTBDUHDZKROHQRWH!!
6KRUWLQWUDOHWWHUUHVW
VSHDNHUBRII
`
FTWLPHUH[SLUHV MLIILHVWLPHBYDOXH
FTBWLPHUH[SLUHV MLIILHV
,QFDVH\RXKDYHVHHQWKLVHOVHZKHUH
LWGRHV1RW:RUN
DGGBWLPHUFTBWLPHU
UHWXUQ
`
VWDWLFVVL]HBWFTBZULWHVWUXFWILOHILOHFRQVWFKDUEXI
VL]HBWFRXQWORIIBWSSRV
^
7KLVIXQFWLRQILOOVWKHEXIIHUDQGWKHQJRHVWRVOHHS
XQVLJQHGORQJFRS\BVL]H
XQVLJQHGLQWWLPHBYDOXH
VVL]HBWWRWDOBE\WHVBZULWWHQ
WLPHBYDOXH
WRWDOBE\WHVBZULWWHQ
GR
^
LIVLJQDOBSHQGLQJFXUUHQW
UHWXUQWRWDOBE\WHVBZULWWHQ
FRS\BVL]H FRXQW &4B%8))(5B6,=("FRXQW&4B%8))(5B6,=(
FTBDUHDEXIIHUBRIIVHW
FTBDUHDEXIIHUBHQG FRS\BVL]H
FRS\BIURPBXVHUFTBDUHDEXIIHUEXIFRS\BVL]H
FRS\BIURPBXVHUFTBDUHDEXIIHUEXIFRS\BVL]H
FTBDUHDPFRGH PFRGHVWULQJFTBDUHDEXIIHU>@
WLPHBYDOXH FTBDUHDZKROHQRWH!!
FTBWLPHUH[SLUHV MLIILHVWLPHBYDOXH
DGGBWLPHUFTBWLPHU
VSHDNHUBRII
LQWHUUXSWLEOHBVOHHSBRQFTBDUHDFTBZDLWBT
WRWDOBE\WHVBZULWWHQ WRWDOBE\WHVBZULWWHQFRS\BVL]H
FRXQW FRXQWFRS\BVL]H
EXI EXIFRS\BVL]H
`ZKLOHFRXQW!
GHOBWLPHUFTBWLPHU
UHWXUQWRWDOBE\WHVBZULWWHQ
`
VWDWLFORQJORQJFTBOVHHNVWUXFWILOHILOH
ORQJORQJRIIVHWLQWRULJLQ
^
UHWXUQ(63,3(
`
VWDWLFLQWFTBRSHQVWUXFWLQRGHLQRGHVWUXFWILOHILOH
^
XQVLJQHGLQWPLQRU 0,125LQRGH!LBUGHY
LIPLQRU!6WHUHR1R
UHWXUQ(1;,2
LIFTBDUHDIODJV&4B(;,67
UHWXUQ(1;,2
LIFTBDUHDIODJV&4B%86<
UHWXUQ(%86<
FTBDUHDIODJV FTBDUHDIODJV_&4B%86<
UHWXUQ
`
VWDWLFLQWFTBUHOHDVHVWUXFWLQRGHLQRGHVWUXFWILOHILOH
^
FTBDUHDIODJV FTBDUHDIODJVa&4B%86<
UHWXUQ
`
VWDWLFYRLGFTBVHWBSLWFKXQVLJQHGORQJFSV
^
FTBDUHDWLPHUGLY FSV
)UHTXHQF\RIWKH26&VLJQDORQWKH$7EXV
`
VWDWLFYRLGFTBVHWBWHPSRXQVLJQHGORQJEHDWVBSHUB0LQXWH
^
4XDUWHUQRWH EHDWWLPHUZRUNVLQFHQWLVHFRQGV
FTBDUHDZKROHQRWH EHDWVBSHUBPLQXWH
`
VWDWLFLQWFTBLRFWOVWUXFWLQRGHLQRGHVWUXFWILOHILOH
XQVLJQHGLQWFPGXQVLJQHGORQJDUJ
^
XQVLJQHGLQWPLQRU 0,125LQRGH!LBUGHY
LQWUHWYDO
LIPLQRU!
UHWXUQ(12'(9
LIFTBDUHDIODJV&4B(;,67
UHWXUQ(12'(9
VZLWFKFPG
^
FDVH&4$%257
LIDUJ
FTBDUHDIODJV FTBDUHDIODJV_&4B$%257
HOVH
FTBDUHDIODJV FTBDUHDIODJVa&4B$%257
EUHDN
FDVH&46(73,7&+
LIDUJ
FTBVHWBSLWFKDUJ
HOVH
UHWYDO (,19$/
EUHDN
FDVH&46(77(032
LIDUJ
FTBVHWBWHPSRDUJ
HOVH
UHWYDO (,19$/
EUHDN
FDVH&45(6(7
FTBUHVHW
EUHDN
FDVH&4*(7)/$*6
UHWYDO YHULI\BDUHD9(5,)<B:5,7(
YRLGDUJVL]HRILQW
LIUHWYDO
UHWXUQUHWYDO
HOVH
^
LQWVWDWXV FTBDUHDIODJV
FRS\BWRBXVHULQWDUJVWDWXVVL]HRILQW
`
EUHDN
GHIDXOW
UHWYDO (,19$/
`
UHWXUQUHWYDO
`
LQWFTBLQLWYRLG
^
,QLWLDOL]DWLRQFRGHOLNHWKLVFDQEHFDOOHG
LIDFDOOWRLWLVSODFHGLQPHPF
LIUHJLVWHUBFKUGHY&4B0$-25FTFTBIRSV
^
SULQWN.(51B,1)2FTXQDEOHWRJHWPDMRUG?Q&4B0$-25
UHWXUQ(,2
`
FTBDUHDIODJV &4B2))_&4B(;,67
FTBUHVHW
UHWXUQ
`
,WLVFXVWRPDU\WRLQFOXGHGHILQLWLRQVRISDUDPHWHUVXVHGLQWKH&SURJUDPLQDQLQFOXGHILOH$QLQFOXGHILOH
IRUWKH0RUVH&RGHGULYHUIROORZV
GHILQH&4B(;,67[
GHILQH&4B%86<[
GHILQH&4B2))[
GHILQH&4B$%257[
,2&7/QXPEHUV
GHILQH&4$%257[
GHILQH&46(77(032[6WRUHZKROHQRWHLQWFTBDUHD
GHILQH&46(73,7&+[6WRUHDWLPHUGLYLVRULQWRFTBDUHD
GHILQH&45(6(7[FUHVHWVSHDNHU
GHILQH&4*(7)/$*6[HJHWVWDWXVIODJV
GHILQH&4B%8))(5B6,=(
GHILQH&4B%8))(5B6,=(
GHILQH&4B'()B&+$5'HIDXOWFKDUDFWHU
GHILQH&4B'()B3,7&+'HIDXOWSLWFK
GHILQH&4B'()B7(032'HIDXOWWHPSR
IXQFWLRQSURWRW\SHV
H[WHUQLQWFTBLQLWYRLG
7KHIXQFWLRQVGHILQHGLQ
VWUXFWFTBVWUXFW
WDNHFDUHRIWKHUHVSRQVHE\WKHGULYHUWRUHTXHVWVWKDWWKH
NHUQHOPDNHVLQH[HFXWLQJDV\VWHPFDOOZKLFKLVDVNLQJIRUVHUYLFHIURPWKHGULYHU7KH
FTBWLPHUBKDQGOHU
IXQFWLRQWDNHVFDUHRIWKHGULYHUVUHVSRQVHWRDWLPHULQWHUUXSW7KHVHDUHWKHPDLQWKLQJVWKDWQHHGWREH
GRQH%XWZKHQWKHGHYLFHGULYHUZRUNVFRPPDQGVVXFKDV
OLQX[ER[FDWILOH!GHYFT
ZLOOVWDUWWKHVSHDNHUEHHSLQJ,QRUGHUIRUWKLVWRKDSSHQWKHUHKDVWREHDQHQWU\QDPHG
FT
LQWKH
GHY
GLUHFWRU\ZKLFKKDVDFRQQHFWLRQZLWKWKHSURJUDPVVXFKDV
FTBZULWH
/RRVH(QGV
7RILQLVKWKHGHYLFHGULYHULWLVRQO\QHFHVVDU\WR
z
$GGDPDMRUQXPEHUIRUWKHGHYLFHWRWKH
XVULQFOXGHOLQX[PDMRUK
ILOH
z
&UHDWHDQHQWU\IRUWKHGHYLFHLQWKH
GHY
GLUHFWRU\XVLQJWKHPNQRGFRPPDQG
z
:ULWHD
FTBLQLW
IXQFWLRQDQGLQFOXGHDFDOOWRLWLQWKH
PHPF
ILOH
z
0RGLI\WKH0DNHILOHIRUWKHGLUHFWRU\FRQWDLQLQJWKHGULYHULQWKLV
FDVH
XVUVUFOLQX[GULYHUVFKDU
DQGUHFRPSLOHWKHNHUQHO
7KH
GHY
GLUHFWRU\FRQWDLQVDOLVWRIDJUHDWPDQ\ILOHVPRVWRIZKLFKDUHQRWDFWXDOO\ILOHV7KH
OV±O
FRPPDQGGLVWLQJXLVKHVGLIIHUHQWW\SHVRIILOHVLQWKHYHU\ILUVWFKDUDFWHURIHDFKOLQH)LOHVZKLFKUHDOO\DUH
ILOHVDUHOLVWHGEHJLQQLQJZLWKD
GLUHFWRULHVDUHOLVWHGZLWKD
G
KDUGOLQNVZLWKDQ
O
HWF'HYLFHVDUH
OLVWHGZLWKHLWKHUD
E
RUD
F
GHSHQGLQJRQZKHWKHUWKH\DUHEORFNGHYLFHVRUFKDUDFWHUGHYLFHV%ORFN
GHYLFHVWUDQVIHUGDWDLQEORFNVLHELJXQLIRUPO\VL]HGFKXQNV7RGRWKLVWKH\LQWHUDFWZLWKWKHNHUQHOV
EXIIHUFDFKH%ORFNGHYLFHVFDQEHPRXQWHGLHLQFRUSRUDWHGLQWR8QL[VWUHHVWUXFWXUHGILOHKHLUDUFK\$
KDUGGULYHLVDJRRGH[DPSOHRIDEORFNGHYLFH&KDUDFWHUGHYLFHVGRQWXVHEORFNVDQGWKH\GRQWJHW
PRXQWHG2XUOLWWOHVSHDNHUGULYHULVDFKDUDFWHUGHYLFH(DFKGHYLFHOLVWLQJZKHWKHUIRUDEORFNRUD
FKDUDFWHUGHYLFHDOVROLVWVDPDMRUQXPEHUDQGDPLQRUQXPEHU7KHPDMRUQXPEHULVXVHGDVDQLQGH[LQWR
FKUGHYV
DNHUQHODUUD\RIFKDUDFWHUGHYLFHGULYHUV
VWUXFWGHYLFHBVWUXFWFKUGHYV>0$;B&+5'(9@
(DFKGHYLFHGULYHULVMXVWD
VWUXFWGHYLFHBVWUXFW
^
FRQVWFKDUQDPH
FRQVWVWUXFWILOHBRSHUDWLRQVIRSV
`
7KHGHYLFHLVHQWHUHGLQWRWKHDUUD\E\WKHIXQFWLRQ
UHJLVWHUBFKUGHY
ZKLFKLVGHILQHG
LQ
XVUVUFOLQX[IVGHYLFHVF
7KHPRVWLPSRUWDQWOLQHVRIWKLVGHILQLWLRQDUHDVIROORZV
3URJUDP
LQWUHJLVWHUBFKUGHYXQVLJQHGLQWPDMRU
FRQVWFKDUQDPH
FRQVWFKDUQDPH
VWUXFWILOHBRSHUDWLRQVIRSV
^
FKUGHYV>PDMRU@QDPH QDPH
FKUGHYV>PDMRU@IRSV IRSV
UHWXUQ
`
:KHQWKLVIXQFWLRQLVFDOOHGWKHPDMRUQXPEHULVFRQQHFWHGWRWKHILOHRSHUDWLRQVVWUXFWXUHVHWXSE\WKH
GHYLFHGULYHU7KHFDOOLVPDGHE\WKHGHYLFHGULYHULQWKH
FTBLQLW
IXQFWLRQ7KHRQO\RWKHUWDVN
SHUIRUPHGE\
FTBLQLW
LVWKHLQLWLDOL]DWLRQRIVRPHRIWKHYDOXHVLQ
FTBDUHD
,QRUGHUWRJHWWKHFDOO
SHUIRUPHGGXULQJERRWWLPHDFDOOWRLWPD\EHSODFHGLQWKH
PHPF
SURJUDPQHDUWKHHQGQHDUWKHFDOOWR
OSBLQLW
7KHFRPPDQG
OLQX[ER[PNQRGGHYFTF
FUHDWHVDQHQWU\LQILOHV\VWHPIRUWKH
FT
GHYLFHJLYLQJLWDPDMRUQXPEHURIDQGDPLQRUQXPEHURI
7KLVHQWU\LQWKH
GHY
GLUHFWRU\LVWKHQXVHGWRWUDQVODWHUHIHUHQFHVWR
GHYFT
LQWRFDOOVWRWKHIXQFWLRQV
OLVWHGLQWKHILOHRSHUDWLRQVVWUXFWXUH
6HULDO3RUW'LJLWL]HU'ULYHU
7KH6FDOH[GHYLFHLVDKDQGKHOGPHDVXULQJGHYLFHIRUUHDGLQJGLVWDQFHVRIIRIDIODWVXUIDFH,WLQSXWVGDWD
DWDUDWHRIEDXGWKURXJKWKHVHULDOSRUW6LQFHLWKDVQRKDQGVKDNLQJKDUGZDUHLWGRHVQRWUHVSRQGWR
VRIWZDUHZKLFKWUHDWVLWDVDPRGHPRUDWHUPLQDO,WDOVRKDQGOHVGDWDLQDVSHFLDOIRUPDWZKLFKSDFNVWZR
IRXUELWFKDUDFWHUVLQWRHDFKE\WHVHQWRUUHFHLYHG)RUERWKRIWKHVHUHDVRQVLWLVXVHIXOWRZULWHDVSHFLDO
GULYHUIRULW
2QHLPSRUWDQWHOHPHQWRIDW\SLFDOGHYLFHGULYHUZKLFKZDVQRWQHHGHGLQWKH0RUVH&RGHGHYLFHGULYHU
ZDVWKHLQVWDOODWLRQRIDQLQWHUUXSWKDQGOHU7KH0RUVH&RGHGULYHUVLPSO\WRRNDGYDQWDJHRIWKHVHUYLFHVRI
WKHH[LVWLQJLQWHUUXSWKDQGOHUIRUWKHWLPHULQWHUUXSW
6HWWLQJ8SD1HZ,QWHUUXSW+DQGOHU
0RVWGHYLFHGULYHUVQHHGDQ,65WRKDQGOHLQWHUUXSWVZKLFKFRPHIURPWKHGHYLFH7KH/LQX[IXQFWLRQ
UHTXHVWBLUT
WDNHVFDUHRIWKHLQVWDOODWLRQRIDQHZKDQGOHU,WVGHILQLWLRQLVORFDWHG
LQ
XVUVUFOLQX[DUFKLNHUQHOLUTF
LQWUHTXHVWBLUTXQVLJQHGLQWLUT
7DEOH$6&,,&RGH&KDUW
&WUO#
63&!
#
&WUO$
$
D
&WUO%
%
E
&WUO&
&
F
&WUO'
'
G
&WUO(
(
H
&WUO)
)
I
&WUO*
*
J
&WUO+
+
K
&WUO,
,
L
&WUO-
-
-
&WUO.
.
N
&WUO/
/
O
&WUO0
0
P
&WUO1
1
Q
&WUO2
?
2
R
&WUO3
3
3
YRLGKDQGOHULQWYRLGVWUXFWSWBUHJV
XQVLJQHGORQJLUTIODJV
FRQVWFKDUGHYQDPH
YRLGGHYBLG
6FDOH[,QWHUUXSW+DQGOHU
2QHYLWDOOLQNEHWZHHQWKHLQWHUUXSWKDQGOHUZKLFKLVZULWWHQLQDVVHPEOHUDQGWKHUHVWRIWKHSURJUDPLVWKH
GHILQLWLRQRIWKHVFDOH[GHYLFHPHPRU\DUHD6LQFHWKHDVVHPEO\FRGHGRHVQRWKDYHDFFHVVWRWKHODEHOVXVHG
LQWKH&FRPSLOHULWLVLPSRUWDQWWRFRXQWRIIWKHRIIVHWE\WHVIURPWKHEHJLQQLQJRIWKHVWUXFWXUH7KHVHDUH
XVHGWRDFFHVVWKHGHYLFHPHPRU\+HQFH
VFDOH[BDUHD
LVXVHGLQVWHDGRI
VFDOH[BDUHDUHDGLQ
6LQFHDOOWKHFRPSRQHQWVRIWKLVVWUXFWXUHDUHIRXUE\WHVLQVL]HWKHUHDUHQRWULFNVLQWKHFRXQWLQJ
3URJUDP
VWUXFWFTBVWUXFW
^
XQVLJQHGORQJIODJV
XQVLJQHGLQWUHDGLQ
XQVLJQHGLQWUHDGRXW
XQVLJQHGLQWZULWHLQ
XQVLJQHGLQWZULWHRXW
FKDUUHDGBEXIIHU
FKDUZULWHBEXIIHU
VWUXFWZDLWBTXHXHUGZDLWBT
VWUXFWZDLWBTXHXHZUZDLWBT
`
JOREDOVFDOH[BLQWHUUXSW
5%6HTX7KLVPXVWEHDSRZHURI
&20HTX)+&20%DVH,2$GGUHVVDQG'DWD3RUW
H[WHUQVFDOH[BDUHD
H[WHUQSULQWN
H[WHUQBBZDNHBXS
VFDOH[BLQWHUUXSW
3XVKDOOWKHUHJLVWHUVWKDWJHWXVHGH[FHSW($;
386+(&;
386+(';
386+(%;
386+(6,
386+(',
029(';&20/LQH6WDWXV5HJLVWHU
,1$/';
7(67$/6HHLI'DWD+DV$UULYHG
-=1($5:5'1R"7KHQ1HHGWR:ULWH'DWD"
&WUO3
3
3
&WUO4
4
T
&WUO5
5
U
&WUO6
6
V
&WUO7
7
W
&WUO8
8
X
&WUO9
9
9
&WUO:
:
:
&WUO;
;
;
&WUO<
<
\
&WUO=
=
=
&WUO>
>
^
&WUO?
?
_
&WUO@
@
`
&WUOA
!
A
a
&WUOB
"
'(/!
3URFHVV,QFRPLQJ'DWD
029(6,>VFDOH[BDUHD@UHDGLQFRPSRQHQWRIVWUXFWXUH
$''(6,5%65HDG%XIIHU6L]H
68%(6,>VFDOH[BDUHD@UHDGRXWFRPSRQHQWRIVWUXFWXUH
$1'(6,5%65HDG%XIIHU6L]H
-=1($55%)5HDG%XIIHU)XOO
7KHVHOLQHVWHVWWKHFRQGLWLRQ
UHDGLQ UHDGRXW25UHDGLQ UHDGRXWPRG
Q
,ILWLVWUXHWKHQWKHFLUFXODUEXIIHUKDVRYHUIORZHG1RWH5%6
Q
029(';&20'DWD3RUWKDV]HURRIIVHW
,1$/';7KLVLVWKHGDWDE\WHULJKWKHUH
029&/$/.HHSZKROHE\WHLQ$/
$1'(&;&OHDU(&;DQGORRNDWKDOYHVLQ&/
029'/>2.&(&;@7UDQVODWHLQFRPLQJKDOIE\WH
029(%;>VFDOH[BDUHD@*HWDGGUHVVRI5HDG%XIIHU
029(6,>VFDOH[BDUHD@UHDGLQFRPSRQHQWRIVWUXFWXUH
029>(%;(6,@'/6WRUHWUDQVODWHGE\WHLQ5HDG%XIIHU
,1&(6,,QFUHPHQWUHDGLQ
$1'(6,5%6PRG
Q
RIFRXUVH
029>VFDOH[BDUHD@(6,
&03'/:DVWKDWDWHUPLQDOVLJQDO"
-=1($554:,IVRZDNHXSWKHUHDGLQJSURFHVV
029&/$/1RZGRWKHRWKHUKDOIE\WH
6+5&/
029'/>2.&(&;@7UDQVODWHLQFRPLQJKDOIE\WH
029>(%;(6,@'/6WRUHWUDQVODWHGE\WHLQ5HDG%XIIHU
,1&(6,,QFUHPHQWUHDGLQ
$1'(6,5%6PRG
Q
RIFRXUVH
029>VFDOH[BDUHD@(6,
&03'/:DVWKDWDWHUPLQDOVLJQDO"
-=1($554:,IVRZDNHXSWKHUHDGLQJSURFHVV
3URFHVV2XWJRLQJ'DWD
:5'
029(';&20,QWHUUXSW,GHQWLILFDWLRQ5HJLVWHU
,1$/';
7(67$/&KHFNWKH'DWD+DV%HHQ6HQW%LW
-=1($5/(91R"7KHQTXLW
6HHLIWKHHQGRIWKHZULWHEXIIHUKDVEHHQUHDFKHG
029(',>VFDOH[DUHD@ZULWHRXWFRPSRQHQWRIVWUXFWXUH
&03(',>VFDOH[BDUHD@ZULWHLQFRPSRQHQWRIVWUXFWXUH
-=:4:,IGRQHWKHQZDNHXSZULWLQJSURFHVV
32/
029(';&20/LQH6WDWXV5HJLVWHU
,1$/';
7(67$/'DWD+DV%HHQ6HQW%LW
-=32/6KRXOGEHMXVWDVKRUWZDLW
029(%;>VFDOH[BDUHD@*HWDGGUHVVRI:ULWH%XIIHU
029$/>(%;(6,@
029(';&20'DWD3RUW
287';$/+HUHLVWKHRXWJRLQJE\WH
,1&(6,
029>VFDOH[BDUHD@(6,ZULWHRXW
-03/(9
:4::ULWH4XHXH:DNHXS
6LQFHBBZDNHBXSORRNVOLNHDIXQFWLRQZHVKRXOGH[SHFW
WRSXVKWKHDUJXPHQWVDVVKRZQRQWKHQH[WWZROLQHV
386+GZRUG7$6.B,17(55837,%/(
386+GZRUGVFDOH[BDUHD:DNHXS
7KLVLVWKHGRXEOHSRLQWHU
+RZHYHUBBZDNHBXSDFWXDOO\ZDQWVLWVDUJXPHQWVSDVVHG
+RZHYHUBBZDNHBXSDFWXDOO\ZDQWVLWVDUJXPHQWVSDVVHG
LQUHJLVWHUV(';DQG($;
029(';7$6.B,17(55837,%/(
029($;VFDOH[BDUHD:ULWHZDLWTXHXH
&$//BBZDNHBXS
-03/(9
54:5HDG4XHXH:DNHXS
7HVWIODJVFRPSRQHQWIRUWKH5HDG3HQGLQJ%LW
7(67GZRUG>VFDOH[BDUHD@
-=1($5/(91R")DOVHDODUPMXVWTXLW
029(';7$6.B,17(55837,%/(
029($;VFDOH[BDUHD5HDGZDLWTXHXH
&$//BBZDNHBXS
-03/(9
5%)5HDG%XIIHU)XOO
386+GZRUG2952YHUIORZ
&$//SULQWN
$''(63
-03/(9
(UURUPHVVDJH
295GE5HDGEXIIHURYHUIORZ$+
+DOIE\WHWR%\WH7UDQVODWLRQWDEOH
2.&GE$%$+)
/(9
323(',
323(6,
323(%;
323(';
323(&;
5(7
6FDOH[6\VWHP&DOO+DQGOHUV
+HUHDUHWKHIXQFWLRQVZKLFKDUHSRLQWHGDWLQWKHILOHRSHUDWLRQVVWUXFWXUH
3URJUDP
LQFOXGHOLQX[HUUQRK!
LQFOXGHOLQX[NHUQHOK!
LQFOXGHOLQX[PDMRUK!
LQFOXGHOLQX[VFKHGK!
LQFOXGHOLPL[PDOORFK!
LQFOXGHOLQX[GHOD\K!
LQFOXGHOLQX[VFDOH[K!
LQFOXGHDVPLRK!
LQFOXGHDVPLUTK!
LQFOXGHDVPXDFFHVVK!
VWUXFWVFDOH[BVWUXFWVFDOH[DUHD
^18//18//18//18//`
VWDWLFLQWVFDOH[BUHVHWYRLG
^
LQWUHWYDO
VFDOH[BDUHDIODJV 6&$/(;B(;,67
VFDOH[BDUHDUHDGLQ
VFDOH[BDUHDUHDGRXW
VFDOH[BDUHDZULWHLQ
VFDOH[BDUHDZULWHRXW
UHWXUQUHWYDO
`
VWDWLFLQOLQHFKDUFXWFKDU[
^
^
FKDU\
LI[ \
HOVHLI[ \
HOVHLI[! $[ )\ [$
HOVHLI[! D[ I\ [D
HOVHLI[! [ \ [
HOVHLI[ \
HOVHLI[ \
HOVHLI[ \
HOVH\
UHWXUQ\
`
VWDWLFLQOLQHFKDUFKDUBILOOFKDU[
^
&RQYHUWIRXUELWFRGHLQWRD&FKDUDFWHU
FKDU\
LI[ \ )
HOVHLI[ \
HOVHLI[ \ 7HUPLQDWLRQIODJ
HOVHLI[ \
HOVHLI[ \ %
HOVHLI[ \ $1RWXVHG
HOVHLI[\ [
HOVH\ .HHSWKHFRPSLOHUKDSS\
UHWXUQ\
`
VWDWLFLQOLQHLQWRNBDVFLLBFKDUFKDU[
^
-XVWDYDOLGLW\FKHFNRQWKHWRVHHLI[
LVRQHRIWKHFKDUDFWHUVFRGHDEOHLQWKHIRXUELWVFDOH[FRGH
UHWXUQ[! $[ )__
[! D[ I__
[! [ __
[ __[ __[ ?Q__[
`
VWDWLFLQOLQHYRLGZULWHBE\WHFKDU[
^
ZKLOHLQEBS6&$/(;B&20B%$6(6&$/(;B/65B'$7$B287B(037<
XGHOD\O&KHFN/LQH6WDWXV5HJVLWHUXQWLOLWVRND\
RXWEBS[6&$/(;B&20B%$6(
`
VWDWLFVVL]HBWVFDOH[BZULWHVWUXFWILOHILOHFRQVWFKDUEXI
VL]HBWFRXQWORIIBWSSRV
^
VVL]HBWUHWY
XQVLJQHGORQJFRS\BVL]H
LQWMNOVUBUHJ
FKDUFG
VWUXFWVFDOH[BVWUXFWVFDOH[ VFDOH[BDUHD
6FDOH[WDNHVVKRUWFRPPDQGVWULQJV
&KDUDFWHUVIROORZLQJWHUPLQDWLRQZLOOEHGLVFDUGHG
7HUPLQDWLRQZLOOEHDGGHGWRDOOVWULQJV
N
ZKLOHEXI>N@ N6&$/(;B:5,7(B6,=(
NFRXQWN N
LIN 6&$/(;B:5,7(B6,=(
UHWXUQ(,19$/
LIN UHWXUQFRXQW
6LQFHFRXQW 6&$/(;B:5,7(B%8)6,=(
FRS\BVL]H N
IRUN NFRS\VL]HN N
^
F EXI>N@
LIRNBDVFLLBFKDUF
UHWXUQ()$8/7
`
LIFRS\BIURPBXVHUVFDOH[!ZULWHBEXIIHUEXIFRS\BVL]H
^
UHWXUQ()$8/7
`
N FRS\BVL]H
3DFNHDFKWZRE\WHVIURPWKHXVHUVEXIIHULQWRRQHE\WH
RIWKHVFDOH[EXIIHU
IRUN M N FRS\BVL]HN NM M
LIN FRS\BVL]H
^
VFDOH[!ZULWHBEXIIHU>M@ [IG
`
HOVHLIN FRS\VL]H
^
F FXWEXI>N@
VFDOH[!ZULWHBEXIIHU>M@ [G_F
`
HOVH
^
F FXWEXI>N@
G FXWEXI>N@
VFDOH[!ZULWHBEXIIHU>M@ G_F
`
VFDOH[!ZULWHLQ M1XPEHURIE\WHVLQWRVFDOH[EXIIHU
ZKLOHLQEBS6&$/(;B&20B%$6(6&$/(;B/65B'$7$B287B(037<
VFDOH[!ZULWHRXW 1H[WE\WHWREHWUDQVPLWWHG
OVUBUHJ LQEBS6&$/(;B&20B%$6(
LIOVUBUHJ
^
5HDGWKLVGDPQE\WH,WVKRXOGQWEHKHUHEXWLWLV
F LQEBS6&$/(;B&20B%$6(
G FKDUBILOOF2[I
LIVFDOH[!UHDGRXW &LUFXODUEXIIHULVIXOO
VFDOH[!UHDGLQ6&$/(;B5($'B%8))(5B6,=(__
VFDOH[!UHDGRXW
VFDOH[!UHDGLQ6&$/(;B5($'B%8))(5B6,=(
^
VFDOH[!IODJV
VFDOH[!IODJV_6&$/(;B(55_6&$/(;B5)8//
SULQWN7KHUHDGEXIIHURYHUIORZHG?Q
UHWXUQ()$8/7
`
LIG 2WKHUKDOIE\WHVKRXOGEHMXVWILOOHU
^
'RQWVWRUHWKLV,WPLJKWJHWWKHUHDGVWXFN
`
HOVH
^
VFDOH[!UHDGBEXIIHU>VFDOH[!UHDGLQ@ G
VFDOH[!UHDGLQ
VFDOH[!UHDGLQ6&$/(;B5($'B%8))(5B6,=(
G FKDUBILOOF!!
LIG
^
'RQWVWRUHWKLVHLWKHU
`
HOVH
^
VFDOH[!UHDGBEXIIHU>VFDOH[!UHDGLQ@ G
VFDOH[!UHDGLQ
VFDOH[!UHDGLQ6&$/(;B5($'B%8))(56,=(
`
`
`
RXWEBSVFDOH[!ZULWHBEXIIHU>@6&$/(;B&20B%$6(
LQWHUUXSWLEOHBVOHHSBRQVFDOH[!ZUZDLWBT
LIVLJQDOBSHQGLQJFXUUHQW
UHWXUQ(,175
UHWY FRXQW
UHWXUQUHWY
`
VWDWLFORQJORQJVFDOH[BOVHHNVWUXFWILOHILOH
ORQJORQJRIIVHWLQWRULJLQ
^
UHWXUQ(63,3(
`
VWDWLFVVL]HBWVFDOH[BUHDGVWUXFWILOHILOHFKDUEXI
VL]HBWOHQJWKORIIBWSSRV
^
VWUXFWVFDOH[BVWUXFWVFDOH[ VFDOH[BDUHD
VVL]HBWFRXQW
LQWN
5HDGIURPDVFLLBUHDGEXIIHU
0DNHWKHLQWHUUXSWKDQGOHUGRWKHWUDQVODWLQJ
VHHLIFKDULVZDLWLQJLQEXIIHU
LIVRUHDGLW
LIQRWVHW5($'3(1',1*ELWDQGJRWRVOHHS
VFDOH[!IODJV VFDOH[!IODJV_6&$/(;B53(1'
FRXQW OHQJWK
GR
^
LIVFDOH[!UHDGLQ VFDOH[!UHDGRXW
LQWHUUXSWLEOHBVOHHSBRQVFDOH[!UGZDLWBT
LIVFDOH[!UHDGLQ VFDOH[!UHDGRXW
^
EXI>N@ VFDOH[!UHDGBEXIIHU>VFDOH[!UHDGRXW@
VFDOH[!UHDGRXW
VFDOH[!UHDGRXW6&$/(;B5($'B%8))(5B6,=(
N N
LIEXI>N@ 6&$/(;B5($'B675,1*B7(50,1$/
UHWXUQN
:KHWKHUWKH7(50,1$/VWULQJLVFRXQWHGDVRQHRIWKHE\WHVUHDG
RUQRWKDVDGUDVWLFHIIHFW6FDQIKDQJVRQ(2/VLILWLV
EXWRQRUGLQDU\VWULQJVLILWLVQRW
,WLVSUREDEO\EHWWHUWRFRXQWLW
`
FRXQW FRXQW
`
ZKLOHFRXQW!
FRXQW N
,QWHUUXSWKDQGOHUVKRXOGFKHFN5($'B3(1',1*ELW
DQGLVVXHDZDNHXSLILWVVHW
VFDOH[!IODJV VFDOH[!IODJV6&$/(;B53(1'
UHWXUQFRXQW
`
VWDWLFLQWVFDOH[BRSHQVWUXFWLQRGHLQRGHVWUXFWILOHILOH
^
FKDUF
LIVFDOH[BDUHDIODJV6&$/(;B(;,67
UHWXUQ(1;,2
LIVFDOH[BDUHDIODJV6&$/(;B%86<
UHWXUQ(%86<
VFDOH[BDUHDUHDGBEXIIHU
FKDUNPDOORF6&$/(;B5($'B%8))(5B6,=(*)3B.(51(/
VFDOH[BDUHDZULWHBEXIIHU
FKDUNPDOORF6&$/(;B:5,7(B%8))(5B6,=(*)3B.(51(/
LIVFDOH[BDUHDUHDGBEXIIHU__VFDOH[BDUHDZULWHBEXIIHU
^
VFDOH[BDUHDIODJV VFDOH[BDUHDIODJV6&$/(;B%86<
UHWXUQ(120(0
`
,QLWLDOL]HWKH6FDOH[$UHD
VFDOH[BDUHDUHDGLQ
VFDOH[BDUHDUHDGRXW
VFDOH[BDUHDZULWHLQ
VFDOH[BDUHDZULWHRXW
,QLWLDOL]HWKH&20SRUW
F LQEBS6&$/(;B&20B%$6(/LQH&RQWURO5HJLVWHU
F F_[%LWDOORZV%DXG5DWH6HWWLQJ
RXWEBSF6&$/(;B&20B%$6(
RXWEBS6&$/(;B&20B%$6(%DXG5DWH'LYLVRU8SSHU%\WH
RXWEBS[F6&$/(;B&20B%$6(%DXG%5'/RZHU%\WH
RXWEBS6&$/(;B&20B%$6(
3XWEDFNELWDQGPDNHSDULW\1
F LQEBS6&$/(;B&20B%$6(0RGHP&RQWURO5HJLVWHU
RXWEBS6&$/(;B&20B%$6(,QWHUUXSW(QDEOH5HJLVWHU
7UDQVPLWDQG5HFHLYH5HDG\2QO\
F F_
RXWEBSF6&$/(;B&20B%$6((QDEOHLQWHUUXSWV
UHWXUQ
`
VWDWLFLQWVFDOH[BUHOHDVHVWUXFWLQRGHLQRGHVWUXFWILOHILOH
^
XQVLJQHGLQWPLQRU 0,125LQRGH!LBUGHY
FKDUF
LIPLQRU!
UHWXUQ(12'(9
NIUHHBVVFDOH[BDUHDUHDGBEXIIHU6&$/(;B5($'B%8))(5B6,=(
NIUHHBVVFDOH[BDUHDZULWHBEXIIHU6&$/(;B:5,7(B%8))(5B6,=(
VFDOH[BDUHDUHDGBEXIIHU 18//
VFDOH[BDUHDZULWHBEXIIHU 18//
VFDOH[BDUHDIODJV VFDOH[BDUHDIODJV6&$/(;B%86<
F LQEBS6&$/(;B&20B%$6('LVDEOHLQWHUUXSWV
F F[I
RXWEBSF6&$/(;B&20B%$6(
UHWXUQ
`
VWDWLFLQWVFDOH[BLRFWOVWUXFWLQRGHLQRGHVWUXFWILOHILOH
XQVLJQHGLQWFPGXQVLJQHGORQJDUJ
^
XQVLJQHGLQWPLQRU 0,125LQRGH!LBUGHY
LQWVWDWXV
LQWUHWYDO
LIPLQRU!
UHWXUQ(12'(9
LIVFDOH[BDUHDIODJV6&$/(;B(;,67
UHWXUQ(12'(9
VZLWFKFPG^
FDVH6&$/(;5(6(7
VFDOH[BUHVHW
EUHDN
FDVH6&$/(;*(7)/$*6
VWDWXV VFDOH[BDUHDIODJV
LIFRS\BWRBXVHULQWDUJVWDWXVVL]HRILQW
UHWXUQ()$8/7
EUHDN
GHIDXOW
UHWYDO (,19$/
`
UHWXUQUHWYDO
`
VWDWLFVWUXFWILOHBRSHUDWLRQVVFDOH[BIRSV ^
VFDOH[BOVHHN
VFDOH[BUHDG
VFDOH[ZULWH
18//VFDOH[BUHDGGLU
18//VFDOH[BSROO
VFDOH[BLRFWO
18//VFDOH[BPPDS
VFDOH[BRSHQ
18//IOXVK
VFDOH[BUHOHDVH
`
LQWVFDOH[BLQLWYRLG
^
LIUHJLVWHUBFKUGHY6&$/(;B0$-25VFDOH[VFDOH[BIRSV
^
SULQWNVFDOH[XQDEOHWRJHWPDMRUG?Q6&$/(;B0$-25
UHWXUQ(,2
`
LIUHTXHVWBLUTVFDOH[BLQWHUUXSWVFDOH[18//
^
SULQWNVFDOH[XQDEOHWRJHWLUTG?Q
UHWXUQ(,2
`
VFDOH[BDUHDIODJV 6&$/(;B(;,67
UHWXUQ
`
3URJUDP
GHILQH6&$/(;B(;,67[
GHILQH6&$/(;B%86<[
GHILQH6&$/(;B53(1'[
GHILQH6&$/(;B5)8//[
GHILQH6&$/(;B5(55[
GHILQH6&$/(;B&20B%$6([)
GHILQH6&$/(;B&20B%$6([)
GHILQH6&$/(;B,,5B'$7$B,1B)8//
GHILQH6&$/(;B,,5B'$7$B287B(037<
GHILQH6&$/(;B/65B'$7$B,1B)8//
GHILQH6&$/(;B/65B'$7$B287B(037<
GHILQH6&$/(;B:5,7(B6,=(
GHILQH6&$/(;B:5,7(B%8))(5B6,=(
GHILQH6&$/(;B5($'B%8))(5B6,=(
GHILQH6&$/(;B5($'B675,1*B7(50,1$/
,2&7/QXPEHUV
GHILQH6&$/(;5(6(7[FUHVHWVFDOH[
GHILQH6&$/(;*(7)/$*6[HJHWVWDWXVIODJV
GHILQH6&$/(;B:5,7(B%8))(5B6,=(
GHILQH6&$/(;B5($'B%8))(5B6,=(
IXQFWLRQSURWRW\SHV
H[WHUQLQWVFDOH[BLQLWYRLG
)XUWKHU5HDGLQJ
:ULWLQJ8QL['HYLFH'ULYHUV*HRUJH3DMDUL$GGLVRQ:HVOH\
/LQX['HYLFH'ULYHUV$OHVVDQGUR5XELQL25HLOO\
&KDSWHU'26352*5$06
/LQX[ZDVZULWWHQIRUWKH7KHUHWDLQVPDQ\RIWKHIHDWXUHVRIWKH6LQFH'26ZDVZULWWHQIRU
WKHWKHUHLVPXFKWREHOHDUQHGDERXWWKHIURPWKHVWXG\RI'26SURJUDPV
7KHHQYLURQPHQWLQZKLFKD'26SURJUDPRSHUDWHVLVYHU\GLIIHUHQWIURPWKHHQYLURQPHQWRID8QL[XVHU
SURJUDP,WLVUHPDUNDEOHWKDWRQHDQGWKHVDPHSURFHVVRUFDQVXVWDLQERWKRIWKHVHHQYLURQPHQWV7KUHH
PDLQGLIIHUHQFHVEHWZHHQWKH'26HQYLURQPHQWDQGWKH8QL[XVHUSURJUDPHQYLURQPHQWDUH
0HPRU\UHIHUHQFLQJ,Q8QL[PHPRU\DFFHVVLVFRQWUROOHGXVLQJDYLUWXDOPHPRU\V\VWHP,Q/LQX[
YLUWXDOPHPRU\LVEDVHGRQSDJLQJ7KHDSSOLFDWLRQVSURJUDPPHUKDVQRGLUHFWDFFHVVWRSK\VLFDO
PHPRU\,Q'26WKHUHLVQRSDJLQJ.QRZLQJWKHSK\VLFDODGGUHVVRIDPHPRU\ORFDWLRQHQDEOHVWKH
SURJUDPPHUWRZULWHGLUHFWO\WRWKDWORFDWLRQ,WUHTXLUHVPDQLSXODWLRQRIWKHVHJPHQWDWLRQSURFHVVDV
LVH[SODLQHGLQ
FKDSWHU
VHFWLRQ
,Q8QL[WKHDSSOLFDWLRQVSURJUDPPHUPD\LJQRUHWKH
VHJPHQWDWLRQSURFHVVVLQFHIRUXVHUVWKHUHLVMXVWRQHELJVHJPHQWDQGLWLVDOZD\VWKHVDPH
3ULYLOHJHOHYHO,Q8QL[RQO\V\VWHPSURJUDPVKDYHV\VWHPOHYHOSULYLOHJH8VHUSURJUDPVGRQRW
6WULFWO\VSHDNLQJ'26KDVQRSULYLOHJHOHYHOV%XWDFWXDOO\ZKHQ'26LVUXQQLQJDOOSURJUDPV
H[HFXWHDWHIIHFWLYHO\V\VWHPOHYHOSULYLOHJH/LQX[XVHUSURJUDPVGRQRWFDUU\V\VWHPOHYHOSULYLOHJH
2QHFRQVHTXHQFHRIWKLVLVWKDWWKH\GRQRWKDYHGLUHFW,2DFFHVV7KDWLVWKH\DUHQRWDOORZHGWRXVH
HLWKHUWKH
,1
RUWKH
287
LQVWUXFWLRQV3ULYLOHJHOHYHOVDUHGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
&RGLQJGHIDXOW[/LQX[SURJUDPVH[HFXWHZLWKDELWFRGLQJGHIDXOW'26SURJUDPVH[HFXWH
ZLWKDELWFRGLQJGHIDXOW&RGLQJGHIDXOWVDUHGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
:KHQ[SURFHVVRUVVWDUWLQJZLWKWKHFUHDWHD'26HQYLURQPHQWWKH\DUHVDLGWREHRSHUDWLQJLQ
UHDOPRGH:KHQQRWLQUHDOPRGHWKH\DUHVDLGWREHLQSURWHFWHGPRGH,Q/LQX[XVHUSURJUDPVDQGPRVW
NHUQHOSURJUDPVUXQLQSURWHFWHGPRGH/LQX[RQO\XVHVUHDOPRGHIRUERRWLQJDQGWKLVLVQHFHVVDU\VLQFH
WKHRQO\ZD\DQ[SURFHVVRUFDQERRWLVLQUHDOPRGH
3ULYLOHJHOHYHOVDQGFRGLQJGHIDXOWVKDYHDOUHDG\EHHQGLVFXVVHGEXWVHJPHQWDWLRQKDVEHHQWRWDOO\LJQRUHG
WRWKLVSRLQW+RZHYHU'26SURJUDPVUHTXLUHLW:HEHJLQRXUGLVFXVVLRQRIVHJPHQWDWLRQZLWKUHDOPRGH
WRWKLVSRLQW+RZHYHU'26SURJUDPVUHTXLUHLW:HEHJLQRXUGLVFXVVLRQRIVHJPHQWDWLRQZLWKUHDOPRGH
VHJPHQWDWLRQ6HJPHQWDWLRQLQSURWHFWHGPRGHLVGLVFXVVHGLQ
FKDSWHU
VHFWLRQ
5HDO0RGH6HJPHQWDWLRQ
7KHWHUPVVHJPHQWDQGVHJPHQWDWLRQDUHXVHGLQPDQ\RYHUODSSLQJDQGFRQIOLFWLQJZD\V&RQVHTXHQWO\LW
ZRXOGEHZHOOWRPDNHDSUHOLPLQDU\DWWHPSWDWFODULI\LQJWHUPLQRORJ\,Q'26FRGHDQGGDWDVHJPHQWVRID
SURJUDPPD\EHVWRUHGLQFRGHDQGGDWDVHJPHQWVRIPHPRU\EXWDUHQWQHFHVVDULO\,Q/LQX[WKH\QHYHU
DUH7H[WDQGGDWDVHJPHQWVRIDSURJUDPDUHVWRUHGRQVHSDUDWHSDJHVRIPHPRU\QRWVHSDUDWHVHJPHQWVRI
PHPRU\,Q[/LQX[WKHHUURUPHVVDJH6HJPHQWDWLRQ)DXOWGRHVQRWUHIHUWRDVHJPHQWDWLRQIDXOWLW
UHIHUVDSDJHSURWHFWLRQIDXOW:RUVWRIDOOLVWKHWHUPORJLFDOVHJPHQWZKLFKDFFXUDWHO\VSHFLILHVQRWKLQJDW
DOO
7RDYRLGZDQWRQO\PXGG\LQJWKLQJVIXUWKHUWKLVERRNZLOOGRJJHGO\DGKHUHWRWKHIROORZLQJGLVWLQFWLRQV
EHWZHHQSURJUDPVHJPHQWVPHPRU\VHJPHQWVDQGVHJPHQWDWLRQ
6HJPHQWVDQG6HJPHQWDWLRQ
z
3URJUDPVHJPHQW6LQFH
FKDSWHU
ZHKDYHDSSOLHGWKHWHUPVHJPHQWWRDFKXQNRIDQH[HFXWDEOHILOH
7KLVLVVWDQGDUGXVDJH3URJUDPVW\SLFDOO\KDYHWH[WDQGGDWDVHJPHQWV
z
6HJPHQWDWLRQSURFHVV,QWKLVERRNWKHWHUPVHJPHQWDWLRQLVDSSOLHGRQO\WRDQDGGUHVVSURFHVVLQJ
PHFKDQLVPZKLFKKDVWKHHIIHFWRIGLYLGLQJPHPRU\LQWRFKXQNV
z
0HPRU\VHJPHQW,WLVFXVWRPDU\WRDSSO\WKHWHUPVHJPHQWWRWKHFKXQNVRIPHPRU\SURGXFHGE\WKH
VHJPHQWDWLRQSURFHVV,QWKLVERRNPHPRU\VHJPHQWVZLOODOZD\VEHUHIHUUHGWRLQFRQQHFWLRQZLWKD
VSHFLDONLQGRIUHJLVWHUFDOOHGVHJPHQWUHJLVWHU
2QDQ[SURFHVVRUVHJPHQWDWLRQLVFRQWUROOHGE\VHJPHQWUHJLVWHUV
6HJPHQW5HJLVWHUV
2QWKHIRXURIWKHJHQHUDOUHJLVWHUVFDQEHXVHGIRUDGGUHVVHV%;%36,DQG',7KDWLVWKH\FDQEH
XVHGLQEUDFNHWVWRUHIHUWRPHPRU\)RUH[DPSOHWKHFRPPDQGV
029%;+
029$/>%;@
ZRXOGFRS\WKHFRQWHQWVRIRQHPHPRU\ORFDWLRQLQWRWKH$/UHJLVWHU%XW%;%36,DQG',DUHELW
UHJLVWHUVDQGWKHKDVDELWDGGUHVVEXV6RDQDGGUHVVUHJLVWHUFDQRQO\DGGUHVV.RIWKHDYDLODEOH
0HJRIPHPRU\7RJHWDURXQGWKLVSUREOHPWKHGHVLJQHUVRIWKHFUHDWHGVSHFLDOELWUHJLVWHUV
FDOOHGVHJPHQWUHJLVWHUVZKLFKRQWKHVSHFLI\WKHILUVWDGGUHVVRUEDVHDGGUHVVRID.FKXQNRI
PHPRU\2QWKHD.FKXQNRIPHPRU\VSHFLILHGE\DVHJPHQWUHJLVWHULVFDOOHGDPHPRU\VHJPHQW
$QPHPRU\VHJPHQWPD\EHJLQRQDQ\ILYHGLJLWKH[DGGUHVVZKLFKHQGVLQD]HUR7KHILUVWIRXU
GLJLWVRIWKLVDGGUHVVDUHVWRUHGLQWKHDVVRFLDWHGVHJPHQWUHJLVWHU7KHVHJPHQWUHJLVWHUVDUH&6'6
(6DQG667KHPHPRU\VHJPHQWVSHFLILHGE\WKH&6UHJLVWHUIRUH[DPSOHLVFDOOHGWKH&6VHJPHQWFRGH
VHJPHQW2QDQ[SURFHVVRUFRGHLVDOZD\VIHWFKHGIURPWKH&6VHJPHQW/LNHZLVHWKHVWDFNLVDOZD\V
ORFDWHGLQWKH66VHJPHQWVWDFNVHJPHQW7KHDQGVXEVHTXHQW[SURFHVVRUVKDYHWZRDGGLWLRQDO
VHJPHQWUHJLVWHUV)6DQG*6
6HJPHQWUHJLVWHUVPD\EHDFFHVVHGXVLQJWKHFRPPDQG
029UHJUHJ
ZKHUHRQHUHJLVWHULVDQ\ELWJHQHUDOUHJLVWHUDQGWKHRWKHUPD\EHDQ\VHJPHQWUHJLVWHU$QH[FHSWLRQLV
WKDW&6PD\QRWEHXVHGDVWKHGHVWLQDWLRQUHJLVWHU6LQFHLQVWUXFWLRQVDUHIHWFKHGIURPWKH&6VHJPHQW
VWRULQJDQHZYDOXHLQ&6ZRXOGKDYHWKHGUDVWLFHIIHFWRIFKDQJLQJWKHVHJPHQWWKDWFRGHLVEHLQJIHWFKHG
IURP$MXPSWRDGLIIHUHQWVHJPHQWLVFDOOHGDIDUMXPS&DUU\LQJRXWDIDUMXPSUHTXLUHVDVSHFLDO
FRPPDQG,QWUDVHJPHQWMXPSVDUHFDOOHGQHDUMXPSV
FRPPDQG,QWUDVHJPHQWMXPSVDUHFDOOHGQHDUMXPSV
7KHUHLVQRORDGLPPHGLDWHFRPPDQGIRUVHJPHQWUHJLVWHUV7KHIROORZLQJFRPPDQGIRUH[DPSOHLV
LOOHJDO
029'6+
6XSSRVHWKDW'6(6DQG66KDYHYDOXHVVWRUHGLQWKHPYLDWKHIROORZLQJFRPPDQGV
029$;+
029'6$;
029$;+
029(6$;
029$;&+
02966$;
6RWKHQ'6KROGV+(6KROGV+DQG66KROGV&+
)LJXUH
VKRZVWKHWKUHHVHJPHQWV
ZKLFKDUHHQDEOHGE\WKHVHWKUHHUHJLVWHUORDGV7KHHQWLUHPHPRU\FRQVLVWVRIWKHDGGUHVVHVIURPWKURXJK
)))))+7KH'6VHJPHQWFRQVLVWVRIWKHDGGUHVVHVIURP+WKURXJK))))+7KH(6VHJPHQWUDQJHV
IURP+WKURXJK))))+7KH66VHJPHQWJRHVIURP&+WKURXJK')))+
)LJXUH0HPRU\ZLWK7KUHH'LVWLQJXLVKHG6HJPHQWV
6HJPHQW2IIVHW1RWDWLRQ
6XSSRVHQRZWKDWZHZRXOGOLNHWRUHIHUWRWKHPHPRU\ZKRVHDGGUHVVLV+LQDQDVVHPEOHU
FRPPDQG7KLVDGGUHVVOLHVLQWKH'6VHJPHQW7KLVLVEHFDXVH+ZDVMXVWVWRUHGLQWKH'6UHJLVWHU,W
LV+E\WHVIURPWKHEDVHDGGUHVV7KLVGLIIHUHQFHWKHDGGUHVVPLQXVWKHEDVHDGGUHVVLVFDOOHGWKH
RIIVHW7KHVHJPHQWRIIVHWSDLULVRIWHQXVHGLQWKHDVVHPEO\ODQJXDJHDVIROORZV
029%/'6>+@
,Q1$60WKHV\QWD[LV
029%/>'6+@
7KLVFRPPDQGORDGVWKHFRQWHQWVRIPHPRU\ORFDWLRQ+LQWR%/+ ++1RWH
WKDWWKHEDVHDGGUHVVLWVHOILVDILYHGLJLWKH[QXPEHUHYHQWKRXJK'6RQO\KROGVIRXUGLJLWVLQWKLVFDVH
+
7KHDGGUHVV+LVDSK\VLFDODGGUHVVQRWDYLUWXDODGGUHVV7KHELWVZKLFKWKHSURFHVVRUSXPSVRXW
RQWRWKHDGGUHVVEXVPD\EHUHDGRIIWKHELQDU\QXPEHU
7KHVDPHPHPRU\UHDGFRXOGEHDFFRPSOLVKHGXVLQJDELWDGGUHVVUHJLVWHUDVIROORZV
029%;+
029%/>'6%;@
%;%36,DQG',PD\EHXVHGIRUDGGUHVVLQJLQWKLVZD\EXW63$;&;DQG';PD\QRW
'HIDXOW6HJPHQWV
6HJPHQWGHVLJQDWLRQVPD\EHRPLWWHG7KHUHLVDOZD\VDGHIDXOWVHJPHQW5HIHUULQJWR
7DEOH
ZHVHH
WKDWWKHGHIDXOWVHJPHQWIRUDQLPPHGLDWHDGGUHVVLVWKH'6VHJPHQW+HQFHWKHFRPPDQG
029%/>+@
DOVRDFFRPSOLVKHVWKHVDPHORDGDVWKH
029%/>'6%;@
LQVWUXFWLRQ6RGRWKHFRPPDQGV
029%;+
029%/>%;@
7DEOH'HIDXOW6HJPHQWV
ELWDGGUHVV
ELWDGGUHVV
>LPP@
'6
>LPP@
'6
>($;@
'6
>$;@
LOOHJDO
>@
(6ZLWKVWULQJLQVWUXFWLRQV
7KHGHIDXOWVHJPHQWIRUERWKLPPHGLDWHDGGUHVVHVDQGIRUDGGUHVVHVVWRUHGLQWKH%;UHJLVWHULVWKH'6
VHJPHQW
'HIDXOWVHJPHQWVH[LVWLQELWFRGHDVZHOO,QIDFWWKDWLVZKDWPDNHVLWSRVVLEOHWRGRSURJUDPPLQJ
ZLWKRXWUHIHUHQFHWRVHJPHQWVDVLVGRQHLQ
FKDSWHU
7KH/LQX[SURJUDPVWKHUHDOOPDNHXVHRIDGHIDXOW
VHJPHQW,WLVDFWXDOO\D*LJVHJPHQW6HWWLQJXSELJVHJPHQWVOLNHWKLVLVGLVFXVVHGLQ
FKDSWHU
,Q[
/LQX[WKH&6'6(6DQG66VHJPHQWVDOOUHIHUWRWKHVDPH*LJVHJPHQW6RWKHSURJUDPPHUKDVQR
RSWLRQVDQGWKHGHIDXOWVHJPHQWLVDOZD\VRND\
(GOLQDV(QYLURQPHQW9DULDEOHV
0DQ\DVVHPEOHUVKDYHGLUHFWLYHVZKLFKDOORZYDULDEOHVWREHGHILQHGDQGWKHQXVHGLQVXEVHTXHQW
H[SUHVVLRQV,Q1$60WKHV\QWD[IRUVXFKDGLUHFWLYHLV
,Q(GOLQDVLWLV
,Q(GOLQDVWKHUHDUHEXLOWLQYDULDEOHVZKRVHYDOXHVFRQWUROWKHEHKDYLRURIWKHDVVHPEOHUDQGWKHVLPXODWRU
2QHRIWKHVHLV86(ZKLFKGHWHUPLQHVZKHWKHUWKHDVVHPEOHUXVHVELWRUELWFRGLQJ7KHGHIDXOWLV
'26SURJUDPVUHTXLUH
1$60XVHVDGLUHFWLYHFDOOHG
%,76
)RUH[DPSOHWRVSHFLI\ELWFRGHLQ1$60WKHOLQH
%,76
GRHVWKHWULFN$QRWKHUHQYLURQPHQWYDULDEOHLV
'272
,WGHWHUPLQHVWKHIRUPDWRI
R
ILOHVVDYHGE\(GOLQDV
7KHGHIDXOWLV
(/)'26
QHHGVWKH
&20
IRUPDW
1$60JRYHUQVWKHIRUPDWRIWKHRXWSXWILOHXVLQJDFRPPDQGOLQHVZLWFK7RJHWD
&20
IRUPDWLQ1$60
WKH
IELQ
VZLWFKZRUNV,WLVDOVRWKHGHIDXOWVRWKDWQRVZLWFKDWDOOZLOOGRWKHVDPHWKLQJ$ILOHZLWKWKLV
IRUPDWKDVHVVHQWLDOO\QRH[WUDFRGHDWDOO,WLVMXVWDSODLQELQDU\ILOH
(GOLQDVHQYLURQPHQWYDULDEOHVPD\DOVREHGHILQHGLQDQ('/,1,ILOHRUIURPWKH!SURPSW
)L[HG0HPRU\$UHDV
>($;@
'6
>$;@
LOOHJDO
>(%;@
'6
>%;@
'6
>(&;@
'6
>&;@
LOOHJDO
>(';@
'6
>';@
LOOHJDO
>(6,@
'6
>6,@
'6
>(',@
'6
>@
>',@
'6
>@
>(63@
66
>63@
66
>(%3@
66
>%3@
66
)L[HG0HPRU\$UHDV
5HDOPRGHDOORZVWKHSURJUDPPHUWRXVHSK\VLFDOPHPRU\DGGUHVVHV0HPRU\DGGUHVVHVVSHFLILHGLQUHDO
PRGHDUHXVHGRQWKHDGGUHVVEXVMXVWOLNH,2DGGUHVVHV7KLVJLYHVWKHSURJUDPPHUXQLPSHGHGDFFHVVWR
PHPRU\,QWKLVVHFWLRQDVDQH[HUFLVHLQWKHXVHRIUHDOPRGHDGGUHVVHVZHFRQVLGHUWZRDUHDVRIPHPRU\
ZKLFKDUHGHILQHGE\IL[HGSK\VLFDODGGUHVVHVWKHYLGHREXIIHUDQGWKHNH\ERDUGEXIIHU7KHORFDWLRQRIWKH
YLGHREXIIHULVIL[HGLQWKHKDUGZDUH%XWWKHNH\ERDUGEXIIHULVRQO\IL[HGE\'26DQGKHQFHLWFDQEH
PRYHG5HIHUULQJWR
)LJXUH
SURJUDPVZKLFKDFFHVVWKHVHSK\VLFDOPHPRU\DUHDVGLUHFWO\DUHGHILQLWHO\
UXGHSURJUDPVDVRSSRVHGWRSROLWHSURJUDPV
)LJXUH8QSURWHFWHG2SHUDWLQJ6\VWHPVXFKDV'26
9LGHR%XIIHU
2QVWDQGDUG3&VWKHUHLVDUHJLRQRIPHPRU\VWDUWLQJDWWKHDGGUHVV%+FDOOHGWKHYLGHREXIIHU,QWKH
PRVWFRPPRQO\XVHGYLGHRWH[WPRGHWKHYLGHREXIIHUKROGVWKHWH[WLQIRUPDWLRQZKLFKLVGLVSOD\HGRQWKH
VFUHHQ$YHU\VLPSOHEXWVRPHZKDWWHGLRXVZD\WRRXWSXWLQIRUPDWLRQRQD3&LVWRVWRUH$6&,,FRGHVLQ
WKLVEXIIHU6HH
7DEOH
7KHDGGUHVV%+LVWKHDFWXDOO\DGGUHVVRIWKH$6&,,FRGHIRUWKHFKDUDFWHULQWKHXSSHUOHIWKDQGFRUQHU
RIWKHVFUHHQ6HH
)LJXUH
7KHQH[WE\WHZKLFKLVDW%+FRQWDLQVWKHDWWULEXWHLQIRUPDWLRQIRUWKLV
VDPHFKDUDFWHU
7DEOH
VKRZVKRZWKHHLJKWELWVRIDQDWWULEXWHE\WHDUHXVHG%+LVWKH$6&,,FRGH
RIWKHVHFRQGFKDUDFWHULQWKHILUVWURZ%+LVLWVDWWULEXWHE\WHDQGVRRQ7KHWRSURZFRQVLVWVRI
FKDUDFWHUVRUE\WHVVLQFHHDFKFKDUDFWHUWDNHVWZRE\WHVRIVWRUDJH2QHVFUHHQIXOLVURZVî
FROXPQVîE\WHVSHUFKDUDFWHU E\WHV7KHEXIIHUDFWXDOO\FRQWDLQVE\WHV +
)LJXUH8SSHU/HIWDW%WKURXJK/RZHU5LJKWDW%)(
3URJUDP
SULQWV+HOORRQWKHVFUHHQE\VWRULQJILYH$6&,,FRGHVLQWRWKHYLGHREXIIHU)LJXULQJWKH
DGGUHVVRIWKHWKLUW\VHYHQWKFKDUDFWHURQOLQHLQKH[
3URJUDP
LVDOLWWOHE\WHSURJUDPZKLFKFRORUVWKHVFUHHQ\HOORZRQEOXHE\ZULWLQJWRDOOWKH
DWWULEXWHE\WHVLQWKHYLGHREXIIHU,WEHJLQVDW)))+DQGFRXQWVGRZQE\WZRV
.H\ERDUG%XIIHU
:KHQDNH\LVHLWKHUSUHVVHGRUUHOHDVHGDQLQWHUUXSWLVJHQHUDWHG2QDQ,6$PDFKLQHWKLVLQWHUUXSWLV
DOORWWHG,54ZKLFKLQWXUQLVUHSRUWHGE\WKHLQWHUUXSWFRQWUROOHUDVLQWHUUXSWQXPEHU6HH
7DEOH
7KH'26LQWHUUXSWVHUYLFHURXWLQHLQWHUURJDWHVWKHNH\ERDUGDW,2SRUW+DQGGHSRVLWVFKDUDFWHUVLW
UHFHLYHVIURPWKHUHLQDWLQ\EXIIHUORFDWHGDW(+7KH
FKDUDFWHUVFRPHLQIURPWKHNH\ERDUGDVVFDQFRGHV7KH,65FRQYHUWVHDFKVFDQFRGHWRDQ$6&,,FKDUDFWHU
DQGVWRUHVERWKDVFDQFRGHDQGDQ$6&,,FRGHLQWKH
3URJUDP
86(
'272 &20
:ULWH+HOORE\VWRULQJ$6&,,FRGHVLQWRWKHYLGHREXIIHU
029$;2%+)LUVWGLJLWVRI%+
029'6$;
029',/DVWGLJLWRI%+
029$+$6&,,IRU+
029>',@$+6WRUHWKHFKDUDFWHU
$''',1H[WRGGDGGUHVV
029$+$6&,,IRUH
029>',@$+6WRUHWKHFKDUDFWHU
$''',
029$+$6&,,IRU
029>',@$+6WRUHWKHFKDUDFWHU
$''',
029$+$6&,,IRU
029>',@$+6WRUHWKHFKDUDFWHU
$''',
029$+$6&,,IRUR
029>',@$+6WRUHWKHFKDUDFWHU
5(75HWXUQWR'26
EXIIHU)URPWKLVEXIIHUWKHNH\VDUHSLFNHGXSE\WKHDSSOLFDWLRQSURJUDPRUWKHFRPPDQGOLQHLQWHUSUHWHU
7KHWZRE\WHVVWRUHGDW$SRLQWWRWKHQH[WGHSDUWLQJE\WHV,Q
)LJXUH
WKHUHLVRQHNH\ZDLWLQJWREH
SLFNHGXS,WLVWKHOHWWHU&ZKRVH$6&,,FRGHLV+(LVLWVVFDQFRGH7KHWZRE\WHVVWRUHGDW&SRLQW
WRWKHORFDWLRQZKHUHWKHQH[WDUULYLQJE\WHVZLOOEHVWRUHG6LQFHWKHGHSDUWLQJSRLQWHULVRQO\WZRE\WHV
EHKLQGWKHDUULYDOSRLQWHUWKLVPHDQVWKHUHLVRQO\RQHFKDUDFWHULQWKHEXIIHU&LQWKLVFDVH%RWKSRLQWHUV
ZUDSDURXQGZKHQWKH\UHDFK()RUWKLVUHDVRQWKHEXIIHULVFDOOHGDFLUFXODUEXIIHU
)LJXUH'26.H\ERDUG%XIIHU
3URJUDP
VWRUHVWKHVWULQJ
',5
LQWRWKHNH\ERDUGEXIIHU
5HDO0RGH,QWHUUXSWV
:KHQSROLWHXVHUSURJUDPVZDQWDFFHVVWRSHULSKHUDOVWKH\FDOOWKHRSHUDWLQJV\VWHP,QDSURWHFWHG
RSHUDWLQJV\VWHPWKHUHLVQRFKRLFHDERXWWKLV,QDQXQSURWHFWHGRSHUDWLQJV\VWHPOLNH'26WKHFDOOWRWKH
RSHUDWLQJV\VWHPLVRSWLRQDO6HH
)LJXUH
-XVWDVWKHSURJUDPVLQ
VHFWLRQ
DFFHVVHGSHULSKHUDOVE\
EDUJLQJ
3URJUDP
86(
'272 &20
029$;2%+9LGHREXIIHUEHJLQVDW%+
029'6$;
029%;2)))+2GGDGGUHVVHQGLQJWKH.EXIIHU
029$+(+<HOORZRQEOXH
$*1029>%;@$+$WWULEXWHJRHVLQWRRGGDGGUHVV
'(&%;*HWQH[W
'(&%;RGGDGGUHVV
-16$*1&RQWLQXHWLOOWKHEHJLQQLQJRIWKHEXIIHU
5(75HWXUQWR'26
LQRQWKHLUSULYDWHPHPRU\VSDFHUXGHSURJUDPVFDQDOVRDFFHVVSHULSKHUDOVE\XVLQJXVLQJ
,1
DQG
287
LQVWUXFWLRQV
/LNH/LQX[WKH'26RSHUDWLQJV\VWHPLVDFFHVVHGXVLQJVRIWZDUHLQWHUUXSWV7KHLQWHUUXSWPRVWXVHGIRU
DFFHVVWR'26LV
,17+
7RFDOORQHRIWKHIXQFWLRQVDYDLODEOHXQGHU
,17+
LWVQXPEHULVVWRUHGLQWKH
$+UHJLVWHUEHIRUHWKHLQWHUUXSWLVFDOOHG
'26,QWHUUXSWV
7RFDOOWKH'26IXQFWLRQZKLFKRXWSXWVDFKDUDFWHUWRWKHFXUVRUORFDWLRQRQWKHVFUHHQWKHIXQFWLRQQXPEHU
LVVWRUHGLQWKH$+UHJLVWHUDQGWKH$6&,,FRGHRIWKHFKDUDFWHUWREHSULQWHGLVVWRUHGLQWKH'/UHJLVWHU
7DEOH
VKRZVWKH$6&,,FRGH)RUH[DPSOHWKHIROORZLQJFRGHZRXOGSULQWWKHOHWWHU+
3URJUDP
029$+
029'/$6&,,FRGHIRU+
,17+
86(
'272 &20
029$;+0DNH+WKHEDVHDGGUHVV
029'6$;RIWKH'6VHJPHQW
029'/K$6&,,FRGHIRU'
7DEOH$WWULEXWH%\WH<HOORZRQ%OXHLV(+
%LW
8VDJH
([DPSOH
%OLQNLQJ
%DFNJURXQG5HG
%DFNJURXQG*UHHQ
%DFNJURXQG%OXH
)RUHJURXQG,QWHQVLW\
)RUHJURXQG5HG
)RUHJURXQG*UHHQ
)RUHJURXQG%OXH
029'/K$6&,,FRGHIRU'
&$//&67
029'/+$6&,,FRGHIRU,
&$//&67
029'/+$6&,,FRGHIRU5
&$//&67
5(7
&670296,>&+@3RLQWHUWRHQGRINH\ERDUGEXIIHU
029>6,@'/6WRUHWKHFKDUDFWHULQWRWKHEXIIHU
68%6,&+
$1'6,$GGPRGWR6,(+
$''6,(+
029>&+@6,6WRUHWKHUHYLVHGSRLQWHU
5(7
$UHODWHG'26IXQFWLRQZKLFKRXWSXWVDVWULQJRIFKDUDFWHUVFDQEHFDOOHGXVLQJ$+ 7KHVHJPHQWRIIVHW
DGGUHVVRIWKHVWULQJLVVWRUHGLQ'6';7KHVWULQJPXVWEHWHUPLQDWHGE\DGROODUVLJQFKDUDFWHU$6&,,
+
0DQ\RIWKHVH'26IXQFWLRQVFDOOSURJUDPVVWRUHGLQ5207KH\DUHRIWHQFDOOHG%,26SURJUDPV0DQ\
%,26LQWHUUXSWVDUHDFFHVVHGXVLQJ
,17+
RU
,17+
%,26,QWHUUXSWV
7RFDOOWKH%,26IXQFWLRQWRRXWSXWDFKDUDFWHUWRWKHFXUVRUORFDWLRQRQWKHVFUHHQWKHIXQFWLRQQXPEHU
$+LVVWRUHGLQWKH$+UHJLVWHUDQGWKH$6&,,FRGHRIWKHFKDUDFWHUWREHSULQWHGLVVWRUHGLQ'/7KH
QXPEHURIWLPHVWKHFKDUDFWHULVWREHZULWWHQLVVWRUHGLQ&;
029$+
029'/$6&,,FRGHIRU+
029&;1XPEHURIWLPHV+LVSULQWHG
029%+&XUUHQWSDJH
,17+
7KH%+UHJLVWHUQHHGVDLQRUGHUWRVHQGWKHRXWSXWWRWKHYLGHREXIIHUGHVFULEHGLQ
VHFWLRQ
7KHUHLV
XVXDOO\DQRWKHU.YLGHREXIIHUVWDUWLQJDW%+7RDFFHVVWKLVEXIIHUDVKRXOGEHVWRUHGLQ%+(DFK
RIWKHVHEXIIHUVLVFDOOHGDSDJH
7KHVHSDJHVPDNHLWSRVVLEOHWRIOLSIURPRQHVFUHHQWRDQRWKHUZLWKRXWFRS\LQJ.RIPHPRU\7KH'26
IXQFWLRQFDOOWDNHVUHVSRQVLELOLW\IRUDFFHVVLQJWKHFXUUHQWSDJHWKH%,26FDOOGRHVQRW
)LJXUH
LOOXVWUDWHVWKHW\SLFDOVHTXHQFHRIIXQFWLRQFDOOV7KHIDFWWKDW'26SURJUDPVFDOO%,26
SURJUDPVDQGQRWGLUHFWO\WRWKHKDUGZDUHOHDYHVKDUGZDUHGHVLJQHUVIUHHWRPDNHDWOHDVWPLQRUFKDQJHVLQ
WKHLUKDUGZDUHZLWKRXWWKHQHFHVVLW\IRUFKDQJHVLQ'26%\UHYLVLQJWKH%,26SURJUDPVVRDVWRPDLQWDLQ
WKHVDPHIXQFWLRQDOLW\RI%,26LQWHUUXSWVFKDQJHVLQ'26EHFRPHXQQHFHVVDU\6LPLODUO\FKDQJHVLQ'26
FDQEHDFFRPSOLVKHGZLWKRXWGLVUXSWLQJDSSOLFDWLRQVSURJUDPVSURYLGHGWKDWWKH'26LQWHUUXSWLVUHZULWWHQ
VRWKDWLWDIIRUGVWKHVDPHIXQFWLRQDOLW\WRWKHDSSOLFDWLRQVSURJUDP7KHVHOD\HUVDIIRUGDSSOLFDWLRQV
SURJUDPPHUVV\VWHPVSURJUDPPHUVDQGKDUGZDUHGHVLJQHUVDPRGHVWGHJUHHRILQGHSHQGHQFHIURPRQH
DQRWKHU
)LJXUH'260HPRU\DQG3HULSKHUDO$FFHVV
8VHUSURJUDPVZKLFKE\SDVVRQHRUPRUHRIWKHVHOD\HUVULVNDORVVLQSRUWDELOLW\$SURJUDPZKLFKFDOOV
GLUHFWO\WRWKHKDUGZDUHPD\QRWUXQRQDPDFKLQHZLWKGLIIHUHQWKDUGZDUH7KHVWURQJHVWUHDVRQDVRIWZDUH
GHYHORSHUKDVIRUVDFULILFLQJSRUWDELOLW\LVWKDWE\SDVVLQJVRIWZDUHOD\HUVUHGXFHVH[HFXWLRQWLPH([HFXWLRQ
WLPHLVVWLOODSUREOHPLQFRQQHFWLRQZLWKYLGHRSURFHVVLQJ7KDWLVRQHUHDVRQWKDWWKHYLGHREXIIHUEHFDPH
VWDQGDUGL]HG6RPXFKVRIWZDUHZURWHWRLWGLUHFWO\WKDWPRYLQJLWZRXOGKDYHPDGHWKHJUDSKLFVKDUGZDUH
ZLWKWKHROGYLGHREXIIHUPLVVLQJGLIILFXOWWRVHOO
7KH5HDO0RGH,QWHUUXSW7DEOH
:KHQDQLQWHUUXSWRFFXUVWKHLQWHUUXSWQXPEHULVXVHGDVDQLQGH[LQWRWKHLQWHUUXSWWDEOH7KHLQWHUUXSW
WDEOHFRQWDLQVWKHORFDWLRQVRIDOOWKHVHUYLFHURXWLQHV7KHILUVWHQWU\LQWKHWDEOHLVIRULQWHUUXSWQXPEHU
WKHVHFRQGLVIRULQWHUUXSWQXPEHUHWF7KH/LQX[LQWHUUXSWWDEOHLVGHVFULEHGEULHIO\LQ
FKDSWHU
VHFWLRQ
7KHUHDOPRGHLQWHUUXSWWDEOHGLIIHUVIURPWKHSURWHFWHGPRGHLQWHUUXSWWDEOHXVHGE\/LQX[LQVHYHUDO
UHVSHFWV
)LJXUH5HDO0RGH,QWHUUXSW7DEOH
(YHU\HQWU\LQWKHUHDOPRGHLQWHUUXSWWDEOHRFFXSLHVIRXUE\WHV7KHILUVWWZRE\WHVDUHDOLWWOHHQGLDQRIIVHW
YDOXHDQGWKHQH[WWZRDUHDOLWWOHHQGLDQVHJPHQWYDOXHGHVLJQDWLRQ
YDOXHDQGWKHQH[WWZRDUHDOLWWOHHQGLDQVHJPHQWYDOXHGHVLJQDWLRQ
,QUHDOPRGHWKHWDEOHLVFXVWRPDULO\ORFDWHGVWDUWLQJDWDGGUHVV]HURLQPHPRU\6RWKHDGGUHVVRIWKH
LQWHUUXSWVHUYLFHURXWLQHIRULQWHUUXSWLVVWRUHGLQE\WHVWKURXJK7KHDGGUHVVRIWKHURXWLQHIRULQWHUUXSW
LVVWRUHGLQE\WHVWKURXJK,QJHQHUDOLIQLVWKHQXPEHURIDQLQWHUUXSWWKHQWKHDGGUHVVRIWKHHQWU\
QXPEHUQLQWKHLQWHUUXSWWDEOHLVîQ)RUH[DPSOHLIWKHLQWHUUXSWQXPEHULV+WKHQWKHDGGUHVVRIWKH
,65LVWREHIRXQGLQE\WHV&&+WR&)+7KHODUJHVWYDOLGLQWHUUXSWQXPEHULV7KHDGGUHVVIRUWKDW
URXWLQHLVVWRUHGLQE\WHVWKURXJKRU)&+WKURXJK))+î
,QWHUUXSW9HFWRUV
7KHWHUPLQWHUUXSWYHFWRULVRIWHQXVHGLQFRQQHFWLRQZLWKWKLVWDEOH8QIRUWXQDWHO\PDQ\FRQIOLFWLQJ
PHDQLQJVRIWKHWHUPDUHLQXVH7KHWHUPKDVEHHQXVHGWRPHDQ
z
WKHLQWHUUXSWWDEOHLWVHOI
z
RQHRIWKHHQWULHVFRQWDLQHGLQWKHWDEOH
z
DPHPRU\ORFDWLRQFRQWDLQLQJDQHQWU\LQWKHWDEOH
z
DQXPEHULQWKHUDQJHXVHGDVDQLQGH[LQWRWKHWDEOH
7KHWHUPKDVEHHQGDPDJHGEH\RQGUHSDLUDQGLWLVEHVWWRMXVWQRWXVHLWDQ\PRUH
.QRZOHGJHRIWKLVWDEOHPDNHVLWSRVVLEOHWRZULWHDSURJUDPZKLFKVXSHUFHGHVD'26RU%,26LQWHUUXSW
%\FKDQJLQJWKHVWRUHG,65DGGUHVVIURPWKDWRIWKH'26RU%,26LQWHUUXSWWKHQHZSURJUDPFDQWDNHWKH
SODFHRIWKHROGRQH$QHZSURJUDPFDQDOVRLQVHUWLWVHOIDVDOD\HUE\FDOOLQJWKHROGSURJUDPDIWHULWKDV
GRQHZKDWHYHULWZDQWVZLWKWKHRULJLQDOIXQFWLRQFDOO
&KHFNLQJ'260HPRU\
2QHVLPSOHEXWXVHIXODSSOLFDWLRQRIWKHVKLIWFRPPDQGVLVWKHFRQYHUVLRQRIWKHFRQWHQWVRIDUHJLVWHULQWRD
IRXUGLJLWVHTXHQFHRIKH[FKDUDFWHUV)RUH[DPSOHWRSULQWRXWWKHILUVWGLJLWRIWKHQXPEHUVWRUHGLQ%;
VD\&'+ZHFDQPDNHDFRS\RI%;DQGVKLIWLWELWVWRWKHULJKWDQGJHW+7KH$6&,,FRGHIRU
LV+ +:HFDQWKHQVHQGWKLVFRGHWRWKHVFUHHQHLWKHUGLUHFWO\XVLQJWKHYLGHREXIIHUDVLQ
VHFWLRQ
RUDVDQLQWHUUXSWDVLQ
VHFWLRQ
7RJHWWKHVHFRQGGLJLWZHFDQVKLIWDFRS\RI%;HLJKW
ELWVWRWKHULJKWDQGJHW&+7RPDVNRXWDOOEXWWKHERWWRPIRXUELWVZHFDQ$1'ZLWK)+
3URJUDP
XVHVWKLVVLPSOHUHJLVWHUFRQYHUVLRQWRGLVSOD\WKHUHJLRQVRIWKH0HJ'26PHPRU\ZKLFK
DUH520,WZRUNVE\FKHFNLQJHYHU\WKE\WHLQPHPRU\7KHIDFWWKDWWKHSURJUDPVZHHSVWKURXJKWKH
HQWLUHPHPRU\PHDQVWKDWDWVRPHSRLQWLWEHFRPHVVHOIPRGLI\LQJFRGH7KHFULWLFDOOLQHVZKHUHFRGHLV
PRGLILHGLQ
3URJUDP
VSDQIURPWKHLQVWUXFWLRQV
029>',@'/
WRWKH
'(&%<7(>',@
LQVWUXFWLRQ7KH
YDOXHVWRUHGLQ',DWWKHEHJLQQLQJPXVWEHFKRVHQVRWKDWWKHPRGLILHGE\WHVVNLSRYHUWKLVFULWLFDOVHFWLRQ
RIFRGH,WVRKDSSHQVWKDWZRUNVZLWKWKLVFRGH7RVHHZK\\RXFDQFKHFNWKHKH[FRGHWRILQGWKH
DGGUHVVHVRIWKLVFULWLFDOVHFWLRQRIFRGH<RXFDQXVH(GOLQDVWRGRWKLVRUWKH'26SURJUDP'(%8*RUD
KH[HGLWRU%RWK(PDFVDQGWKHWKH
HOYLV
FORQHRI
YL
FDQEHXVHGDVKH[HGLWRUV,QWKLVFDVHWKHDGGUHVVHV
DUHIURP+WR%+VRZRUNVILQH
3URJUDP
SULQWVRXW520DQG5$0RQHOHWWHUDWDWLPH7KH\FDQDOVREHSULQWHGRXWDVVWULQJV'26
LQWHUUXSW+XVLQJ$+ ZLOOSULQWRXWDVWULQJZKLFKHQGVLQDFKDUDFWHUDQGZKRVHVWDUWLQJDGGUHVVLV
VWRUHGLQ';,QVWHDGRIXVLQJ
029';$%&
$%&GE5$0
WRVWRUHDSRLQWHUWRWKHVWULQJZHQHHGWRDGGWKHRIIVHWRIWKHEHJLQQLQJRIWKHSURJUDPWR';'26
ORDGV&20SURJUDPVDWDQRIIVHWRI+6RWKHFRGHVKRZQZRUNVLIWKH
029
LQVWUXFWLRQLVIROORZHGE\
$''';+
$''';+
$VDPSOHUXQRI
3URJUDP
SURGXFHVDQRXWSXWVXFKDV
3URJUDP
5$0
520$
5$0%
520&
0DS5$0YV520LQ'26V0HJ
%,76'26SURJUDPVXVHDELWFRGLQJGHIDXOW
029$+$+ IRU'26YLGHRRXWSXWLQWHUUXSW
;25%/%/%/ 5$0520FKHFN 5$0 520
029',',LVZKLFKE\WHRXWRIHDFKWRFKHFN
;256,6,6, 6WDUWDWWKHEHJLQQLQJRIPHPRU\
723029'66,
029%+%/6DYHSUHYLRXV5$0520LQGLFDWLRQLQ%+
;25%/%/%/ XQOHVVLQFUHPHQWHGEHORZ
029'/>',@*HWPHPRU\YDOXH
,1&'/&KDQJHLW
029>',@'/7U\VWRULQJWKHFKDQJHGYDOXH
&03>',@'/6HHLILWZRUNHG
-1(520,IWKH\UHQRWHTXDOLWV520
'(&%<7(>',@4XLFN3XWEDFNRULJLQDOYDOXH
,1&%/ 5$0 520
520&03%+%/&RPSDUHROGZLWKQHZYDOXH
-*352&KDQJHGIURP5$0WR520VRSULQW520
-/35$&KDQJHGIURP520WR5$0VRSULQW5$0
,1&6,,QFUHPHQWPDLQORRSFRXQWHU
%27-1=723
'815(7$OOGRQH
352029'/553ULQWVWDUWRI520
,17+
029'/2
,17+
-0305*
35$029'/553ULQWVWDUWRI5$0
,17+
029'/$$
,17+
05*029'/00
,17+
029'/VSDFH!
,17+
029&/3UHSDUHWRSULQWIRXUGLJLWV
35/029';',
6+5';&/
$1'';0DVNHYHU\WKLQJH[FHSWKH[RQHVGLJLW
&03'/'RHVWKLVSULQWDVDQXPHUDORUDVDOHWWHU"
-/10/
$'''//HWWHUVQHHGDQH[WUDVHYHQ
10/$'''/+
,17+3ULQWKH[GLJLW
68%&/
-*(35/
029'/)LIWKGLJLWLV
,17+
029'/&DUULDJHUHWXUQ
,17+
029'/1HHGDQ(2/WRR
,17+
5(7
)XUWKHU5HDGLQJ
$GYDQFHG$VVHPEO\/DQJXDJH3URJUDPPLQJ$OLHQ:\DWW6U4XH
&KDSWHU/,18;%2277,0(352*5$06
,Q
FKDSWHU
ZHGLVFXVVHGWKHPDLQGLIIHUHQFHVEHWZHHQWKHHQYLURQPHQWSURYLGHGWRXVHUSURJUDPVZKLFK
UXQXQGHU/LQX[DQGWKHHQYLURQPHQWXQGHUZKLFK'26SURJUDPVUXQ:HVDZKRZYHU\GLIIHUHQWWKHVHWZR
HQYLURQPHQWVDUH0XFKRIWKHGLIIHUHQFHEHWZHHQWKHVHWZRHQYLURQPHQWVLVGXHWRWKHIDFWWKDWDGLIIHUHQW
RSHUDWLQJV\VWHPLVUXQQLQJLQHDFK%XWWKHUHLVDOVRDGLIIHUHQFHDWWKHKDUGZDUHOHYHO'26ZDVZULWWHQIRU
WKHSURFHVVRU,QRUGHUIRU'26WRUXQRQDPDFKLQHWKDWPDFKLQHPXVWDFWOLNHDQ/LQX[LVD
PXOWLWDVNLQJV\VWHP,QRUGHUIRULWWRUXQRQDPDFKLQHWKDWPDFKLQHPXVWKDYHKDUGZDUHVXSSRUWIRUWKH
SURWHFWLRQRIRQHWDVNIURPDQRWKHU7KH[SURFHVVRUVIURPWKHRQVXSSRUWERWKRIWKHVHRSHUDWLQJ
V\VWHPVE\UXQQLQJLQWZRGLVWLQFWRSHUDWLQJPRGHVUHDOPRGHZKLFKHPXODWHVDQDQGSURWHFWHGPRGH
ZKLFKKDVPXOWLWDVNLQJVXSSRUW
&KDQJLQJWR3URWHFWHG0RGH
:KHWKHUDQ[SURFHVVRUUXQVLQUHDORUSURWHFWHGPRGHLVGHWHUPLQHGE\WKHERWWRPELWRIWKH&5
UHJLVWHU7KLVUHJLVWHULVDELWH[WHQVLRQRIWKHELW0DFKLQH6WDWXV:RUGUHJLVWHURQWKH7KH
OHDVWVLJQLILFDQWELWLQWKLVUHJLVWHULVDFWXDOO\WKHPRVWVLJQLILFDQWELWRQWKHHQWLUHSURFHVVRU,ILWLVFOHDUHG
WKHSURFHVVRURSHUDWHVLQUHDOPRGH,ILWLVVHWWKHSURFHVVRURSHUDWHVLQSURWHFWHGPRGH
7DEOH
VKRZVWKHELWDOORFDWLRQVRIWKH&5UHJLVWHULQWKH
7RFKDQJHWRSURWHFWHGPRGHIURP'26LVHDV\
3URJUDP
029($;&5
25($;0DNHWKHOHDVWVLJQLILFDQWELW
029&5($;+HUHJRHV
%XWFKDQJLQJWRSURWHFWHGPRGHVKRXOGQRWEHDWWHPSWHGZLWKRXWSUHSDUDWLRQ7KH
PDFKLQHZLOOSURPSWO\FUDVKLI
3URJUDP
LVUXQEHIRUHWKHIROORZLQJVWHSVDUHWDNHQ
6WHS
,QSURWHFWHGPRGHDOOPHPRU\UHIHUHQFHVGHSHQGRQPHPRU\VHJPHQWGHVFULSWRUWDEOHVSDUWLFXODUO\
RQWKHJOREDOGHVFULSWRUWDEOH0HPRU\UHIHUHQFHVLQFOXGLQJWKRVHXVHGLQFRGHIHWFKLQJZLOOQRW
ZRUNXQWLOWKHVHWDEOHVDUHVHWXS7KHVHWDEOHVDUHGLVFXVVHGLQ
VHFWLRQ
7DEOH&55HJLVWHU
%LWV
/DEHO
)XOO1DPH
3*
3DJLQJ(QDEOH
&'
&DFKH'LVDEOH
1:
1R:ULWH7KURXJK
$0
$OLJQPHQW0DVN
:3
:ULWH3URWHFW
1(
1XPHULF(UURU(QDEOH
(7
([WHQVLRQ7\SHYV
76
7DVN6ZLWFKHG
(0
(PXODWH0DWK&KLS
03
0DWK&KLS3UHVHQW
3(
3URWHFWHG0RGH(QDEOH
ZRUNXQWLOWKHVHWDEOHVDUHVHWXS7KHVHWDEOHVDUHGLVFXVVHGLQ
VHFWLRQ
6WHS
,QSURWHFWHGPRGHWKHXVHRIDUDGLFDOO\GLIIHUHQWDGGUHVVLQJV\VWHPPHDQVWKDWLQVWUXFWLRQVZLOOEH
IHWFKHGIURPDGLIIHUHQW&6VHJPHQW&RGHPXVWEHVWRUHGLQWKHQHZ&6VHJPHQW
6WHS
,QSURWHFWHGPRGHHDFKHQWU\LQWKHLQWHUUXSWWDEOHLVDVSHFLDOO\IRUPDWWHGHLJKWE\WHHQWU\6RWKH
'26LQWHUUXSWWDEOHZKHUHHDFKHQWU\LVMXVWDIRXUE\WHDGGUHVVZLOOQRWZRUN%HIRUHJRLQJLQWR
SURWHFWHGPRGHDQHZLQWHUUXSWWDEOHPXVWEHFUHDWHG
7KLVLVZK\DOO[SURFHVVRUVERRWLQUHDOPRGH
1RWHWKDWVZLWFKLQJWRSURWHFWHGPRGHGRHVQRWVWDUWSDJLQJ$VFKHFNLQJ
7DEOH
VKRZVSDJLQJLVWXUQHG
RQXVLQJWKHWRSELWRI&5
3URWHFWHG0RGH6HJPHQWDWLRQ
$QDVVHPEOHUSURJUDPPHUZRUNLQJRQDQKDVDFFHVVWRZKDWHYHUPHPRU\WKHPDFKLQHKDV$OO
DGGUHVVHVDUHDFFHVVLEOH7RJHWDURXQGSUREOHPVFDXVHGE\WKHPLVILWRIWKHELWDGGUHVVHVDQGELW
DGGUHVVVUHJLVWHUVDGGUHVVLQJRQWKHXVHV.PHPRU\VHJPHQWV7KHORFDWLRQRIWKHVHPHPRU\
VHJPHQWVLVVSHFLILHGE\WKHVHJPHQWUHJLVWHUV2QFHDVHJPHQWUHJLVWHULVORDGHGRQHFDQUHDGWRRUZULWH
IURPWKHVSHFLILHGPHPRU\VHJPHQW6LQFHRQDQWKHSURJUDPPHUFDQZULWHWRDQ\VHJPHQWUHJLVWHUDW
ZLOODSURJUDPPHUFDQUHDGIURPRUZULWHWRDQ\ORFDWLRQLQPHPRU\H[FHSWIRUSK\VLFDOO\UHDGRQO\
PHPRU\7KLVPHDQVWKDWPHPRU\SURWHFWLRQRQDQLVLPSRVVLEOH
%HJLQQLQJZLWKWKHWKHVHJPHQWDWLRQPHFKDQLVPZDVFRPSOHWHO\UHGHVLJQHGIRUWKHSXUSRVHRI
WXUQLQJLWLQWRDPHPRU\SURWHFWLRQPHFKDQLVP0HPRU\VHJPHQWVRQDKDYHDFFHVVSHUPLVVLRQV
VRPHZKDWOLNH8QL[ILOHSHUPLVVLRQV7KH\DOVRKDYHDQDFFHVVSULYLOHJHOHYHO0HPRU\VHJPHQWVDUHQR
ORQJHUUHTXLUHGWREH.LQOHQJWKEXWFDQEHZKDWHYHUOHQJWKWKHRSHUDWLQJV\VWHPVSURJUDPPHUGHFLGHV
XSRQ0HPRU\VHJPHQWVDUHGHILQHGE\HLJKWE\WHGDWDVWUXFWXUHVFDOOHGDVHJPHQWGHVFULSWRUVRUVRPHWLPHV
MXVWDGHVFULSWRUV7KHVHGHVFULSWRUVDUHVWRUHGLQWDEOHVFDOOHGGHVFULSWRUWDEOHV'HVFULSWRUWDEOHVDUH
ORFDWHGLQPHPRU\MXVWOLNHWKHLQWHUUXSWWDEOH6HH
FKDSWHU
VHFWLRQ
6HJPHQWUHJLVWHUVDUHXVHGWRVWRUHSRLQWHUVLQWRWKHVHGHVFULSWRUWDEOHV7KHVHSRLQWHUVDUHFDOOHGVHOHFWRUV
7KH\VHOHFWVHJPHQWGHVFULSWRUVIURPWKHGHVFULSWRUWDEOHV6HH
)LJXUH
)LJXUH6HOHFWRU3LFNV6HJPHQW'HVFULSWRUIURPWKH'HVFULSWRU7DEOH
3URWHFWHG0RGH0HPRU\6HJPHQWV
7KHPRVWLPSRUWDQWFKDUDFWHULVWLFVRIDSURWHFWHGPRGHPHPRU\VHJPHQWDUHLWVEDVHDGGUHVVDQGLWVOLPLW
6HH
)LJXUH
IRUDQH[DPSOHRID0HJVHJPHQWVLWXDWHGDWWKHKDOIZD\SRLQWRID0HJPHPRU\
6XSSRVHWKDWWKH'6UHJLVWHUFRQWDLQVDVHOHFWRUVHOHFWLQJDGHVFULSWRUIRUWKLVPHPRU\VHJPHQW7KHQWKH
FRPPDQG
)LJXUH$3URWHFWHG0RGH0HPRU\6HJPHQW
029($;>'6+@
ZRXOGDFFHVVWKHIRXUE\WHVORFDWHGDWWKHDGGUHVVHV+WKURXJK+2QWKHRWKHUKDQGWKH
FRPPDQG
029($;>'6+@
ZRXOGFDXVHDJHQHUDOSURWHFWLRQIDXOWDKDUGZDUHH[FHSWLRQZKLFKJHQHUDWHVLQWHUUXSWQXPEHU6HH
FKDSWHU
VHFWLRQ
7KLVLVEHFDXVHWKHDOOIRXURIIVHWDGGUHVVHVUHIHUHQFHGE\WKHFRPPDQGH[FHHGWKH
OLPLW)RUH[DPSOH
+!)))))+
7KHFRPPDQGLVWU\LQJWRUHDGIURPDORFDWLRQ0HJIURPWKHEHJLQQLQJRIDVHJPHQWZKLFKLVRQO\
0HJLQOHQJWK%HFDXVHWKHKDUGZDUHHQIRUFHVWKHVHVHJPHQWERXQGDULHVWKHVHJPHQWDWLRQV\VWHPFDQEH
XVHGWRSURWHFWRQHWDVNVPHPRU\IURPDQRWKHUV,WZDVXVHGWRSURWHFWNHUQHOPHPRU\IURPXVHUSURFHVVHV
LQYHUVLRQVRI/LQX[EHIRUHYHUVLRQEXWLVQRORQJHUXVHGIRUPHPRU\SURWHFWLRQLQ/LQX[6HJPHQWV
LQ/LQX[QRZXVHDEDVHDGGUHVVRIDQGDOLPLWRI))))))))+LHDOO*LJ
$PRUHFRPSOHWHOLVWRIWKHFKDUDFWHULVWLFVRIDSURWHFWHGPRGHPHPRU\VHJPHQWLVDVIROORZV
%DVH7KLVLVWKHDGGUHVVRIWKHILUVWE\WHRIWKHVHJPHQW,WLVWKHDGGUHVVFRUUHVSRQGLQJWRWKHRIIVHW
RI]HUR>@,QUHDOPRGHWKHEDVHDGGUHVVLVREWDLQHGE\MXVWDSSHQGLQJD]HURWRWKHIRXUKH[GLJLWV
VWRUHGLQWKHVHJPHQWUHJLVWHU
/LPLW7KLVLVWKHODVWYDOLGRIIVHWDGGUHVV,WLVRQHOHVVWKDQWKHQXPEHURIE\WHVLQWKHVHJPHQW,WLV
WKDQNVWRWKLVSDUDPHWHUWKDWVHJPHQWVDUHQRWQHFHVVDULO\.DQ\PRUH7KHOLPLWQHHGHGWRVSHFLI\
D0HJVHJPHQWIRUH[DPSOHLV)))))+
D0HJVHJPHQWIRUH[DPSOHLV)))))+
$FFHVV3HUPLVVLRQV3HUPLVVLRQVWRUHDGZULWHDQGH[HFXWHFDQEHVSHFLILHG
$FFHVV3ULYLOHJH/HYHO7KLVSULYLOHJHOHYHOLVWKHOHDVWSULYLOHJHGYDOXHWKH&3/PD\KDYHLQRUGHU
IRUDFFHVVWREHJUDQWHG
0LVFHOODQHRXV7KHUHDUHIRXURUILYHIXQFWLRQDOELWVLQWKHGHVFULSWRUXQXVHGE\LWHPVWKURXJK,Q
WKHFDVHRIH[HFXWDEOHVHJPHQWVRQHRIWKHVHELWVGHWHUPLQHVZKHWKHUWKHFRGHVWRUHGLQWKHVHJPHQW
ZLOOEHH[HFXWHGXVLQJDELWRUDELWGHIDXOWVHH
VHFWLRQ
,QRUGHUWRFDUU\RXWEDVHSOXVRIIVHWFRPSXWDWLRQVDQGRIIVHWYHUVXVOLPLWFRPSDULVRQVZLWKRXWWKHGHOD\
ZKLFKZRXOGEHFDXVHGE\DPHPRU\DFFHVVHDFKVHJPHQWUHJLVWHUKDVDVVRFLDWHGZLWKLWEDVHDQGOLPLW
UHJLVWHUVZKLFKDUHUHORDGHGHYHU\WLPHWKHVHJPHQWUHJLVWHULVFKDQJHGWRUHIHUHQFHDGLIIHUHQWVHJPHQW
)LJXUH
VKRZVWKHVHUHJLVWHUV$OWKRXJK
)LJXUH
VKRZVRQO\EDVHDGGUHVVDQGOLPLWUHJLVWHUVWKHUH
DUHDOVRUHJLVWHUVIRUDOOWKHRWKHUSHUPLVVLRQDQGSULYLOHJHELWVGHILQHGE\WKHVHJPHQWGHVFULSWRU
)LJXUH6HOHFWRU%DVHDQG/LPLW5HJLVWHUV
6SHFLDO0HPRU\6HJPHQWVWKH*'7DQGWKH,'7
6KRZQLQ
)LJXUH
DUHUHJLVWHUVIRUWKHWDVNVWDWHVHJPHQWWKHORFDODQGJOREDOGHVFULSWRUWDEOHVDQGWKH
LQWHUUUXSWGHVFULSWRUWDEOHWKH766/'76*'7DQG,'71RQHRIWKHVHDUHPHPRU\VHJPHQWVLQWKHVHQVH
WKDWWKH\FDQEHXVHGLQDQRUGLQDU\PHPRU\DFFHVVFRPPDQG)RUH[DPSOH
029($;>766+@
LVQRWYDOLGFRGH%XWWKH\DUHFKXQNVRIPHPRU\WKDWKDYHEDVHDGGUHVVHVDQGOLPLWV6LQFHWKH*'7DQG
WKH,'7DUHQRWDFFHVVHGYLDVHOHFWRUVWKH\DUHQRWFDOOHGPHPRU\VHJPHQWV7KH766DQGWKH/'7DUH
UHIHUUHGWRDVVSHFLDOPHPRU\VHJPHQWV
7KHWDVNVWDWHVHJPHQWLVXVHGLQWDVNVZLWFKHV7KHWDVNEHLQJH[LWHGVDYHVLWVUHJLVWHUVLQLWVWDVNVWDWH
VHJPHQW7KHEDVHDGGUHVVDQGOLPLWRIWKH766LVGHILQHGE\DVHJPHQWGHVFULSWRUMXVWOLNHRWKHUPHPRU\
VHJPHQWV
7KHORFDOGHVFULSWRUWDEOHVHJPHQW/'76LVXVHGWRVWRUHGHVFULSWRUVRIVHJPHQWVZKLFKDUHQRWVKDUHG
ZLWKDOORWKHUWDVNVRQWKHV\VWHP
ZLWKDOORWKHUWDVNVRQWKHV\VWHP
7KHJOREDOGHVFULSWRUWDEOHLVXVHGIRUVWRULQJGHVFULSWRUVRIPHPRU\VHJPHQWVZKLFKDUHDFFHVVHGE\DOO
WDVNVRQWKHV\VWHPDVZHOODVDOO/'76DQG766GHVFULSWRUV
$VZHFDQVHHIURP
)LJXUH
WKHUHFDQEHRQO\RQHJOREDODQGRQHORFDOGHVFULSWRUWDEOHLQHIIHFWDWDQ\
JLYHQWLPH:KHQDWDVNVZLWFKRFFXUVWKHORFDOGHVFULSWRUWDEOHLVFKDQJHGMXVWOLNHWKHSDJHWDEOHVDUH
FKDQJHG%XWWKHJOREDOGHVFULSWRUWDEOHVWD\VWKHVDPH
7KH,'7WKHLQWHUUXSWGHVFULSWRUWDEOHDQGLWVHQWULHVDUHGHVFULEHGLQ
FKDSWHU
7KHJOREDOGHVFULSWRUWDEOHDQGLQWHUUXSWGHVFULSWRUWDEOHDOVRKDYHEDVHDGGUHVVHVDQGOLPLWVDQGKHQFH
WKHUHDUHUHJLVWHUVIRUWKHP%XWWKHVHDGGUHVVHVDUHQHYHUFRGHGLQWRGHVFULSWRUVVRWKHUHLVQRSRLQWLQ
KDYLQJVHOHFWRUVIRUWKHP,QWHOGRHVQRWFRQVLGHUWKHJOREDOGHVFULSWRUWDEOHRUWKHLQWHUUXSWGHVFULSWRUWDEOH
WREHVHJPHQWVEHFDXVHWKH\DUHQRWDFFHVVHGXVLQJVHOHFWRUV
6HOHFWRUV
,QUHDOPRGHVHJPHQWUHJLVWHUVVXFKDV'6VSHFLI\VHJPHQWVE\KROGLQJWKHILUVWIRXUKH[GLJLWVRIWKHEDVH
DGGUHVVRIWKHVHJPHQW,QSURWHFWHGPRGHVHJPHQWUHJLVWHUVVSHFLI\VHJPHQWVE\KROGLQJSRLQWHUVWRWKHLU
GHVFULSWRUV(DFKGHVFULSWRUFRQVLVWVRIDFRPSOHWHGHILQLWLRQRIWKHVHJPHQW7KHSRLQWHUSRLQWVLQWRD
GHVFULSWRUWDEOH7KHWDEOHPD\HLWKHUEHWKHJOREDOGHVFULSWRUWDEOHRUWKHORFDOGHVFULSWRUWDEOH
$YHU\VLPSOHZD\WRLPSOHPHQWDSRLQWHUOLNHWKLVZRXOGEHWRXVHWKHRIIVHWIURPWKHEHJLQQLQJRIWKH
GHVFULSWRUWDEOH7KLVLVZKDWLVVKRZQLQ
)LJXUH
$OWKRXJKWKHYDOXHVKRZQLQWKHILJXUHZRXOG
ZRUNMXVWDVLOOXVWUDWHGLWLVQRWWKHFDVHWKDWWKHVHOHFWRULVVLPSO\DQRIIVHW
6XSSRVHWKDWDGHVFULSWRUZHZDQWWRSRLQWWRZHUHORFDWHGE\WHVIURPWKHEHJLQQLQJRIDGHVFULSWRUWDEOH
,QWKDWFDVHWKHRIIVHWZRXOGPDNHDYHU\JRRGSRLQWHUWRWKDWGHVFULSWRUDVVXPLQJZHNQRZZKLFKWDEOH
WKHGHVFULSWRULVORFDWHGLQ6LQFHHDFKGHVFULSWRURFFXSLHVHLJKWE\WHVRIVWRUDJHDOOVXFKRIIVHWVDUH
PXOWLSOHVRI+HQFHLQELQDU\WKHWKUHHOHDVWVLJQLILFDQWELWVRIHDFKRIIVHWDUH]HUR7KH[WDNHV
DGYDQWDJHRIWKLVIDFWDQGSXWVWKRVHWKUHHELWVRIWKHVHOHFWRUWRZRUNFDUU\LQJRWKHULQIRUPDWLRQ%LWVDQG
FDUU\DSULYLOHJHOHYHO%LWLVWKHWDEOHLQGLFDWRUELWZKLFKGHWHUPLQHVZKHWKHUWKHVHOHFWRULVDSRLQWHU
LQWRWKHJOREDOWDEOHRUWKHORFDOWDEOH ORFDO JOREDO7RUHFRYHUWKHRIIVHWIURPWKHVHOHFWRUWKH
ERWWRPWKUHHELWVPXVWEH]HURHGEDFNRXWDJDLQ
)LJXUH
LOOXVWUDWHVWKHH[DPSOHZKHUH'6FRQWDLQV
RU+$VDELWELQDU\QXPEHULWLV7KHSRLQWHULQWRWKHGHVFULSWRUWDEOHLVWKHWDEOHRIIVHWLQWKLV
FDVHRU+
)LJXUH6HOHFWRU(QFRGLQJ
7KHWKUHHOHDVWVLJQLILFDQWELWVDUH]HURHGRXW7RORFDWHWKHGHVFULSWRUIRUWKH'6VHJPHQWZHZRXOGJHWWKH
DGGUHVVRIWKHJOREDOGHVFULSWRUWDEOHIURPWKH*'7EDVHDGGUHVVUHJLVWHUDQGDGG+
7KHUHLVRQHVHOHFWRUZKLFKGRHVQRWXVHWKHIRUPDWMXVWGHVFULEHG
,WLVGHVLUDEOHWKDWRQHVHOHFWRUYDOXHEHDQXOOYDOXH7KDWPDNHVLWSRVVLEOHWRVKXWGRZQXQXVHGVHJPHQWV
$VHOHFWRUZKLFKSRLQWVWRRIIVHW]HURLQWKHJOREDOWDEOHLVE\GHILQLWLRQDQXOOVHOHFWRU6WRULQJDQXOO
VHOHFWRULQDVHJPHQWUHJLVWHUGLVDOORZVWKHXVHRIWKDWVHJPHQW$OODWWHPSWVWRDFFHVVDVHJPHQWPDUNHG
ZLWKDQXOOVHOHFWRUFDXVHDJHQHUDOSURWHFWLRQIDXOW7KLVLQFLGHQWDOO\PDNHVLWLPSRVVLEOHIRUDQ\VHOHFWRU
WRDFWXDOO\SRLQWWRWKHILUVWHQWU\LQWKHJOREDOWDEOH6RLWGRHVQWPDWWHUZKDWWKLVHQWU\FRQWDLQV
WRDFWXDOO\SRLQWWRWKHILUVWHQWU\LQWKHJOREDOWDEOH6RLWGRHVQWPDWWHUZKDWWKLVHQWU\FRQWDLQV
6HJPHQW2SHUDWLRQV
7KH*'7KDVWREHWKHUHIRUPHPRU\UHIHUHQFHVWRZRUNLQSURWHFWHGPRGHDQGWKH,'7KDVWREHWKHUHIRU
LQWHUUXSWVWRZRUN7KHORDGFRPPDQGVIRUWKHVHWDEOHVDUH
/*'7PHP
DQG
/,'7PHP
ZKHUHPHPSRLQWVWRVL[E\WHVRIPHPRU\FRQWDLQLQJDWZRE\WHOLPLWIROORZHGE\DIRXUE\WHEDVHDGGUHVV
7KHVHFRPPDQGVZRXOGRUGLQDULO\EHH[HFXWHGMXVWRQFHZKLOHWKHV\VWHPZDVERRWLQJLQUHDOPRGH
2WKHUVHJPHQWUHJLVWHUVDUHORDGHGXVLQJVHOHFWRUV
)LJXUH
VKRZVWKHFRPPDQGVIRUORDGLQJDQGVDYLQJ
VHJPHQWUHJLVWHUVDVZHOODVWKHFRPPDQGVIRUORDGLQJDQGVDYLQJWKH*'7DQG,'7EDVHDQGOLPLW
UHJLVWHUV:KHQVHJPHQWUHJLVWHUVDUHORDGHGDOOWKHRWKHUUHJLVWHUVDVVRFLDWHGZLWKWKHPDUHORDGHGDVZHOO
XQOHVVWKHQXOOVHOHFWRULVXVHGRUXQOHVVVRPHDFFHVVYLRODWLRQRFFXUV
)LJXUH6HJPHQW/RDGDQG6WRUH&RPPDQGV
7KHVHHLJKWE\WHVZRXOGLQFOXGHWKHEDVHDGGUHVVDQGVL]HRIWKH'6VHJPHQW7KHVHHLJKWE\WHVZRXOGDOVR
LQFOXGHDSULYLOHJHOHYHO6LQFHWKHSULYLOHJHFDUULHGLQ'6LVRQO\DWKHSULYLOHJHOHYHOLQWKHVHJPHQW
GHVFULSWRUZRXOGQHHGWREHDRUWKHSURFHVVRUZRXOGQDLOXVZLWKDQHUURU,QSURWHFWHGPRGHDFRPPDQG
VXFKDV
029'6$;
ZLOOFDXVHDSURWHFWLRQIDXOWZKHQHYHUWKHSULYLOHJHOHYHOFDUULHGE\WKHWZROHDVWVLJQLILFDQWELWVRIWKH
VHOHFWRULQ$;LVLQIHULRUWRWKHSULYLOHJHOHYHOZULWWHQLQWRWKHGHVFULSWRURIWKHVHJPHQW%HFDXVHWKHORFDO
GHVFULSWRUWDEOHLVLPSOHPHQWHGDVDVHJPHQWDFFHVVWRLWUHTXLUHVWKDWDVHOHFWRUIRULWEHORDGHGLQWRD
VHJPHQWUHJLVWHU6LQFHWKHORFDOGHVFULSWRUWDEOHLVDVSHFLDOVHJPHQWQRWMXVWDQ\VHJPHQWUHJLVWHUZLOOGR
7KHUHLVDVHJPHQWUHJLVWHUGHGLFDWHGWRWKHORFDOGHVFULSWRUWDEOHWKH/'7UHJLVWHU7RORDGWKH/'7
UHJLVWHUWKHIROORZLQJFRPPDQGLVXVHG
//'7UP
ZKHUHUPPXVWEHDWZRE\WHUHJLVWHURUPHPRU\ORFDWLRQFRQWDLQLQJDVHOHFWRUUHIHUHQFLQJDQHQWU\LQWKH
JOREDOGHVFULSWRUWDEOH7KLVHQWU\VKRXOGEHDGHVFULSWRUIRUDORFDOGHVFULSWRUWDEOH%HFDXVHWKHFRPPDQG
XVHVWKHJOREDOWDEOHLWRQO\ZRUNVLQSURWHFWHGPRGH)RUH[DPSOHLI$;FRQWDLQVDVHOHFWRUZKLFKSRLQWV
DWDGHVFULSWRUORFDWHGLQWKHJOREDOGHVFULSWRUWDEOHDQGWKLVGHVFULSWRUGHVFULEHVDORFDOWDEOHWKHQ
//'7$;
6XSSRVHZHKDYHDFRPSXWHUZLWK0HJRIPHPRU\DQGZHZDQWD0HJVHJPHQWVWDUWLQJDWWKH
EHJLQQLQJDWWKHKDOIZD\SRLQWLHDWWKHDGGUHVV0HJ
%DVH+6WDUWDW0HJ
/LPLW)))))+0HJ6HJPHQW
3HUPLVVLRQV5HDGDQG:ULWH
3ULYLOHJH/HYHO8VHU
7KLVLQIRUPDWLRQFDQEHFRGHGLQWRDQHLJKWE\WHGHVFULSWRU7KLVGHVFULSWRUFDQWKHQEHDGGHGWRD
GHVFULSWRUWDEOH)RUDXVHUSURJUDPWRDFFHVVWKLVVHJPHQWLWPXVWKDYHWKHLQGH[RUVHOHFWRURIWKLV
GHVFULSWRUVWRUHGLQDVHJPHQWUHJLVWHUVXFKDV'67KHRIIVHWDGGUHVVXVHGLQDFFHVVLQJWKHVHJPHQWPXVWEH
OHVVWKDQWKHOLPLWGHILQHGLQWKHGHVFULSWRU
'HVFULSWRU(QFRGLQJ
)LJXUH6HJPHQW'HVFULSWRU/D\RXW
7KHWZRPDLQLWHPVWKDWQHHGWREHHQFRGHGLQWRWKHPHPRU\VHJPHQWGHVFULSWRUDUHWKHEDVHDQGWKHOLPLW
6LQFHWKHVHDUHERWKIRXUE\WHQXPEHUVDQGWKHGHVFULSWRULVDQHLJKWE\WHVWUXFWXUHLWZRXOGDSSHDUWKDWWKH
VSDFHDYDLODEOHLVDOOXVHGXSE\MXVWWKHVHWZRLWHPV%\VTXHH]LQJRQWKHOLPLWHQFRGLQJKRZHYHUH[WUD
ELWVDUHIUHHGXS,QVWHDGRIDOORZLQJDOOHLJKWKH[GLJLWVRIWKHIRXUE\WHOLPLWYDOXHWREHFRQILJXUDEOHWKH
VHJPHQWGHVLJQHULVDOORZHGRQO\ILYHGLJLWVWRSOD\ZLWK7KLVVDYHVWKUHHKH[GLJLWVRUELWV7KHVHWKUHH
KH[GLJLWVDUHDOORZHGWREHHLWKHUVWDFNHGRQDWWKHIURQWRU)VWDFNHGRQDWWKHHQG7KHILUVWLVFDOOHGE\WH
JUDQXODULW\DQGWKHVHFRQGLVFDOOHGSDJHJUDQXODULW\6SHFLI\LQJZKLFKRIWKHVHWZRJUDQXODULWLHVLVXVHG
FRVWVRQHPRUHELW7KLVELWLVFDOOHGWKHJUDQXODULW\ELW$VDQH[DPSOHRIKRZWKLVGHVFULSWRUIRUPDWLV
XVHGOHWXVHQFRGHWKHVDPSOH0HJVHJPHQWMXVWGHVFULEHG7KHIRXUE\WHEDVHYDOXH+ZRXOG
EHVWRUHGLQELWVDQGELWVSOXVHLJKWELWV7KLVRGGIUDFWXUHLVDYHVWLJHRIWKHELW
DGGUHVVLQJXVHGRQWKH'LVSOD\LQJDOOHLJKWE\WHVDVDGLJLWKH[QXPEHUXVLQJ;IRU
XQGHWHUPLQHGGLJLWV\LHOGV
;;;;;;;;
7KHELWOLPLWYDOXHVDUHFRGHGLQWRELWVE\UHVWULFWLQJWKHQXPEHURIDOORZDEOHOLPLWYDOXHV7KHELWV
IURPDQGHQFRGHILYHKH[GLJLWV%LW*IRUJUDQXODULW\GHWHUPLQHVZKHWKHUWKHWKUHH
UHPDLQLQJKH[GLJLWVZLOOEHVDGGHGWRWKHWRSHQGRU)VDGGHGWRWKHERWWRP7KHYDOXH)))))+PD\
UHPDLQLQJKH[GLJLWVZLOOEHVDGGHGWRWKHWRSHQGRU)VDGGHGWRWKHERWWRP7KHYDOXH)))))+PD\
EHHQFRGHGXVLQJHLWKHUVFKHPH,IZHXVH* IRUE\WHJUDQXODULW\WKHQLQVHUWLQJWKHOLPLWELWV
)))))+JLYHVXV
;);;))))
,QWKH&6VHJPHQWVWKH'ELWLVH[WUHPHO\LPSRUWDQW,Q[FRGHWKHUHLVDFRGLQJGHIDXOWZKLFKPD\HLWKHU
EHIRUELWFRGHRUELWFRGH6HH
FKDSWHU
VHFWLRQ
IRUGHWDLOVRQKRZWKLVZRUNV,QSURWHFWHG
PRGHWKHGHIDXOWLVGHWHUPLQHGE\WKH'ELWRIWKH&6VHJPHQWGHVFULSWRU' PHDQVWKDWWKHGHIDXOWLV
ELWFRGH' PHDQVLWLV,QUHDOPRGHWKHGHIDXOWLVDOZD\VELWFRGH:LWK* ' DQGELWV
DQGDVZHJHW
);;))))
%LW3IRUSUHVHQWVKRXOGEHPDUNHG,IWKLVLVWREHDXVHUDFFHVVLEOHVHJPHQWWKHQWKH'3/ELWVPXVW
EH'3/VWDQGVIRUGHVFULSWRUSULYLOHJHOHYHO,IWKLVLVDGDWDVHJPHQWWKHQ( LHLWLVQRW
H[HFXWHDEOHDQG: LHLWLVZULWHDEOH0DNLQJWKHUHPDLQLQJWZRELWVDQG\LHOGV
))))))
7DVN,VRODWLRQYLD/RFDO'HVFULSWRU7DEOHV
$SURFHVVFDQRQO\DFFHVVPHPRU\VHJPHQWVWKDWDUHOLVWHGLQWZRWDEOHVLWVRZQWDEOHFDOOHGWKHORFDO
GHVFULSWRUWDEOHDQGDQRWKHUWDEOHFDOOHGWKHJOREDOGHVFULSWRUWDEOH7KHV\VWHPKDVRQO\RQHJOREDO
GHVFULSWRUWDEOH$OOSURFHVVHVKDYHDFFHVVWRWKHJOREDOWDEOHEXWORFDOWDEOHVQHHGQRWEHVKDUHG
&RQVHTXHQWO\RQHPHWKRGWKHRSHUDWLQJV\VWHPFRXOGXVHWRLVRODWHWDVNVIURPRQHDQRWKHUZRXOGEHWRKDQG
RXWGLIIHUHQWORFDOGHVFULSWRUWDEOHVWRGLIIHUHQWSURFHVVHV,IDVHJPHQWLVQRWOLVWHGLQHLWKHUWKHJOREDO
GHVFULSWRUWDEOHRUWKHSURFHVVVRZQORFDOGHVFULSWRUWDEOHWKHQWKHSURFHVVFDQWJHWWRLW%HIRUHGLVFXVVLQJ
SURWHFWLRQIXUWKHUZHQHHGWRORRNDWVRPHRIWKHGHWDLOVRIGHVFULSWRUVVHOHFWRUVDQGWKHGHVFULSWRUWDEOHV
6HJPHQWDWLRQRQWKHZDVGHVLJQHGWRDOORZGLIIHUHQWWDVNVWRKDYHWKHLURZQPHPRU\VHJPHQWVWR
ZKLFKRWKHUWDVNVZRXOGQRWKDYHDFFHVV(DFKWDVNFDQKDYHLWVRZQORFDOGHVFULSWRUWDEOH'HVFULSWRUVRI
SULYDWHPHPRU\VHJPHQWVFDQEHVWRUHGLQWKHVHORFDOWDEOHV7KH[DUFKLWHFWXUHLPSOHPHQWVORFDO
GHVFULSWRUWDEOHVDVVHJPHQWVFRPSOHWHZLWKGHVFULSWRUVLQWKHJOREDOWDEOH,QWKHPHPRU\VKRZQLQ
)LJXUH
WKHUHDUHHLJKWPHPRU\VHJPHQWV(DFKRIWKHVHPHPRU\VHJPHQWVLVGHILQHGE\DGHVFULSWRUVLWXDWHG
LQDGHVFULSWRUWDEOH$OWKRXJKWKHJOREDOWDEOHLVOLNHDVHJPHQWLWLVQRWDVHJPHQW7KHUHLVQRGHVFULSWRU
IRULWDQ\ZKHUHLQPHPRU\DQGQRVHOHFWRUIRULWDQ\ZKHUHLQWKHSURFHVVRU
)LJXUH0HPRU\ZLWK3URWHFWHG6HJPHQWV
5HYLHZLQJEULHIO\WKHRSHUDWLQJV\VWHPSURWHFWVWKHPHPRU\EHORQJLQJWRRQHWDVNIURPDFFHVVE\DQRWKHU
WDVNE\XVLQJORFDOGHVFULSWRUWDEOHV$QHZWDVNZRXOGUHFHLYHDORFDOGHVFULSWRUWDEOHFRQWDLQLQJ
GHVFULSWRUVRIDOOWKHVHJPHQWVWRZKLFKWKDWWDVNLVDOORZHGDFFHVV6RORQJDVWKHRSHUDWLQJV\VWHPGLGQRW
SXWWKHVDPHGHVFULSWRULQWKHORFDOWDEOHEHORQJLQJWRVRPHRWKHUWDVNWKDWVHJPHQWZRXOGWKHQEHSULYDWH
$WDVNFDQRQO\DFFHVVDVHJPHQWLIDGHVFULSWRUIRUWKDWVHJPHQWLVLQWKHJOREDOWDEOHRULWVRZQORFDOWDEOH
7KLVV\VWHPRISURWHFWLRQLVLQFRPSOHWHKRZHYHU/RFNLQJWKHIURQWGRRUWR\RXUKRXVHGRHVQWORFNWKH
KRXVHLIWKHEDFNGRRULVXQORFNHG6LQFHDOOWDVNVFDQDFFHVVWKHJOREDOWDEOHWKHUHPXVWEHVRPHWKLQJWR
SUHYHQWDURJXHWDVNIURPUHDGLQJWKHGHVFULSWRUVGHILQLQJWKHORFDOGHVFULSWRUWDEOHVEHORQJLQJWRRWKHU
WDVNV
&RQVLGHUWKLVFRGH
3URJUDP
029$;
$;LVDELWVHOHFWRU
%LWLV:HUHSRLQWLQJLQWRWKHJOREDOWDEOH
%LWVDQGDUH
7KDWVV\VWHPOHYHOSULYLOHJH
+$.//'7$;
$;LVSRLQWLQJDWVRPHGHVFULSWRU
,WFRXOGEHDORFDOWDEOHGHVFULSWRU
,IVRLWVSUREDEO\QRWRXURZQORFDOWDEOH
$QGLQWKDWFDVHZHKDYHMXVWERUURZHGVRPHRQH
HOVHVSULYDWHGHVFULSWRUWDEOHDQGZHFDQ
DFFHVVDQ\WKLQJOLVWHGLQWKHUH
DFFHVVDQ\WKLQJOLVWHGLQWKHUH
$''$;0D\EHQRW
*RWRWKHQH[WGHVFULSWRU
-03+$.7KHORFDOWDEOHVDUHLQKHUH
:HOOILQGWKHP
0HPRU\SURWHFWLRQE\LWVHOIGRHVQWZRUN8VHUSURFHVVHVPXVWQRWEHDOORZHGWRH[HFXWHFRGHOLNHWKH
DERYHFRGH
6HWWLQJ8SWKH*OREDO'HVFULSWRU7DEOH
:KHQDQ[SURFHVVRULVWXUQHGRQRUUHVWDUWHGLWGRHVQRWFUHDWHDJOREDOGHVFULSWRUWDEOHDXWRPDWLFDOO\
+HQFHXQOHVVDPDQXIDFWXUHUSXWVRQHLQ520QRQHH[LVWVDWERRWWLPH6LQFHWKHSURFHVVRUFDQWXVH
PHPRU\LQSURWHFWHGPRGHZLWKRXWDJOREDOWDEOHWKHSURFHVVRUPXVWERRWXSLQUHDOPRGH7KHSURFHVVRU
FDQVXEVHTXHQWO\EHVZLWFKHGLQWRSURWHFWHGPRGHEXWRQO\DIWHUWKHJOREDOWDEOHKDVEHHQVHWXS
7KHSURFHVVRUKDVEDVHDGGUHVVDQGOLPLWUHJLVWHUVIRUWKHJOREDOGHVFULSWRUWDEOH*'77KHVHUHJLVWHUVDUH
ORDGHGXVLQJWKHFRPPDQG
/*'7PHP
ZKHUHPHPSRLQWVWRVL[E\WHVRIPHPRU\FRQWDLQLQJDWZRE\WHOLPLWDQGDIRXUE\WHEDVHDGGUHVVIRUWKH
JOREDOWDEOH$OWKRXJKDUHJLVWHU
029
FRPPDQGPLJKWKDYHEHHQDPRUHFRQYHQLHQWZD\RIGRLQJWKLVWKHUH
DUHQRVL[E\WHUHJLVWHUVDYDLODEOH
$VDQH[DPSOHRIKRZZHPLJKWXVHWKH
/*'7
FRPPDQGVXSSRVHWKDWWHQGHVFULSWRUVWKDWZHZDQWWRXVHDV
RXUJOREDOWDEOHKDYHEHHQVWRUHGVWDUWLQJDWDGGUHVV+2XUJOREDOWDEOHZLOOWKHUHIRUHEHHLJKW\E\WHV
ORQJDQGVWDUWDW+7KHOLPLWLVRQHOHVVWKDQHLJKW\RU)+,QRUGHUWRXVHWKH/*'7FRPPDQGZH
QHHGWRVWRUHWKHVHYDOXHVLQPHPRU\VRPHZKHUH6XSSRVHZHVHWXSDVFUDWFKPHPRU\DUHDDW+
DQGSXWRXU*'7YDOXHVWKHUH$IWHUWKLVFRGH
3URJUDP
029$;+6HWXSDVHJPHQWIRUWKHVFUDWFKDUHD
029'6$;
029$;)+*'7VOLPLWLVDE\WHYDOXH
029>'6@$;6WRUHLQWRWKHILUVWE\WHVRI
VFUDWFK
029($;+*'7VEDVHDGGUHVVLVDE\WHYDOXH
029>'6@($;6WRUHWKLVE\WHDGGUHVV
E\WHVLQWRWKHVFUDWFK
'RQWRYHUZULWHWKHILUVWWZRE\WHV
/*'7>'6@
7KLVORDGVWKHERWKWKH*'7EDVHDGGUHVVUHJLVWHU
DQGWKH*'7OLPLWUHJLVWHU
LHORDGDOOE\WHV
KDVH[HFXWHGWKH*'7EDVHVDGGUHVVDQGOLPLWUHJLVWHUVZLOOEHORDGHG7KHJOREDOWDEOHKDVQRWEHHQXVHG
IRUDQ\WKLQJ\HW,QIDFWZHFRXOGHYHQUXQWKLVFRGHILUVWDQGWKHQVWRUHWKRVHHLJKW\E\WHVQH[W7KHJOREDO
WDEOHZLOOQRWJRLQWRRSHUDWLRQXQWLOWKHSURFHVVRULVVZLWFKHGLQWRSURWHFWHGPRGH
&ORVLQJ
7KHVXUIDFHKDVEDUHO\EHHQVFUDWFKHG%XWWKHZD\IRUZDUGLVRSHQ