Professional Documents
Culture Documents
ɊɍɄɈȼɈȾɋɌȼɈɉɈɅɖɁɈȼȺɌȿɅə
&RORU3ODVPD7HOHYLVLRQ
0RGHO1DPH
3'7$
7KLVLVWKHLPDJHRIWKHPRGHO3'7$
'HVNWRSVWDQGVKRZQDERYHLVRSWLRQDO
5($'7+(,16758&7,216,16,'(&$5()8//<
.((37+,686(50$18$/)25)8785(5()(5(1&(
)RUIXWXUHUHIHUHQFHUHFRUGWKHVHULDOQXPEHURI\RXUWHOHYLVLRQ
6(5,$/12
7KLVVHULDOQXPEHULVORFDWHGRQWKHUHDURIWKHWHOHYLVLRQ
7KDQN\RXIRUSXUFKDVLQJWKH+LWDFKL3ODVPD7HOHYLVLRQ
3OHDVHUHDGWKLVXVHUPDQXDOFDUHIXOO\EHIRUHRSHUDWLQJ
WKLVSURGXFW
7RHQVXUHSURSHURSHUDWLRQSOHDVHUHDGDQGIROORZ$//
WKHLQVWUXFWLRQVHVSHFLDOO\WKH,03257$176$)(7<
,16758&7,216DQG6$)(7<35(&$87,216
3OHDVHNHHSWKLVXVHUPDQXDOIRUIXWXUHUHIHUHQFH
,03257$176$)(7<,16758&7,216 0(1823(5$7,21
,1752'8&7,21 +RZWRXVHWKH2Q6FUHHQ'LVSOD\
$ERXW7KLV0DQXDO 26'V\VWHP
7UDGHPDUN&UHGLWV /DQJXDJH0HQX
$ERXW6RIWZDUH 6HWXS0HQX79PRGH
6$)(7<35(&$87,216 6HWXS0HQX$9PRGH
$ERXWWKH6\PEROV 6HWXS0HQX5*%PRGH
&OHDQLQJDQG0DLQWHQDQFH )XQFWLRQ0HQX
$%2873/$60$',63/$<3$1(/ 3LFWXUH0HQX79$9PRGH
,PDJH5HWHQWLRQRI3ODVPD'LVSOD\ 3LFWXUH0HQX5*%PRGH
&RPPRQ&KDUDFWHULVWLFVRI $XGLR0HQX
3ODVPD'LVSOD\3DQHOV 7LPHU0HQX
)($785(6 )81&7,21
6833/,('$&&(6625,(6 $ERXW7HOHWH[W
237,21 6L]H6ZLWFKLQJ
&20321(171$0(6 3LFWXUH)UHH]LQJ
0DLQ8QLW $XGLR6ZLWFKLQJ
5HPRWH&RQWURO 3RZHU6DYH0RGH
35(3$5$7,21
'9'3OD\HU67%6HOHFWLRQ
5HPRWH&RQWURO%DWWHULHV,QVWDOODWLRQ 7528%/(6+227,1*
+DQGOLQJWKH5HPRWH&RQWURO :KHQ)ROORZLQJ0HVVDJHV$SSHDU
&DXWLRQ:KHQ0RYLQJWKH0DLQ8QLW RQWKH6FUHHQ
6DIHW\3UHFDXWLRQRQ0DLQ8QLW,QVWDOODWLRQ 6\PSWRPDQG&KHFN/LVW
$QWL7XPEOH0HDVXUHV 352'8&763(&,),&$7,216
&211(&7,21 6LJQDO,QSXW
7HUPLQDO3RVLWLRQV 5HFRPPHQGHG6LJQDO/LVW
&RQQHFWLQJ3URFHGXUH
%$6,&23(5$7,21
3RZHU2Q2II
)LUVW7LPH6HWXS
9ROXPH83'2:1
0XWH
,QSXW6ZLWFKLQJWR79$9a
+'0,DQG5*%
,QSXW6LJQDO6FUHHQ'LVSOD\
,03257$176$)(7<,16758&7,216
5HDGWKLVLQVWUXFWLRQWKRURXJKO\
5HWDLQWKLVLQVWUXFWLRQIRUIXWXUHUHIHUHQFH
+HHGDOOZDUQLQJVDQGFDXWLRQVWRSUHYHQWSRVVLEOHGDQJHU
)ROORZDOOLQVWUXFWLRQV,PSURSHUKDQGOLQJFRXOGFDXVHSHUVRQDOLQMXU\DQGRUVHULRXVGDPDJHWRWKHXQLWWKDWPD\
VKRUWHQLWVVHUYLFHWLPH
'RQRWEORFNDQ\YHQWLODWLRQRSHQLQJV
,QVWDOOWKHSURGXFWLQDFFRUGDQFHZLWKWKHPDQXIDFWXUH¶VLQVWUXFWLRQV
7KDQN\RXIRUSXUFKDVLQJWKH+LWDFKL3ODVPD7HOHYLVLRQ:HKRSHWKDW\RXZLOOHQMR\WKHJUHDWSHUIRUPDQFHZLWKWKLV
(1*/,6+
SURGXFW
7KLV3ODVPDWHOHYLVLRQKDVEHHQGHVLJQHGWRPHHWWKHLQWHUQDWLRQDOVWDQGDUGV+RZHYHULWFRXOGFDXVHSHUVRQDO
LQMXULHVDQGSURSHUW\GDPDJHLILPSURSHUO\KDQGOHG,QRUGHUWRSUHYHQWSRWHQWLDOGDQJHUDQGREWDLQPD[LPXPEHQH¿W
IURP\RXUVHWSOHDVHREVHUYHWKHIROORZLQJLQVWUXFWLRQVZKHQLQVWDOOLQJRSHUDWLQJDQGFOHDQLQJWKHSURGXFW
.HHSWKLVPDQXDOIRUIXWXUHUHIHUHQFHDQGUHFRUGWKHVHULDOQXPEHURI\RXUVHWLQWKHVSDFHSURYLGHGRQWKHIURQW
FRYHUSDJHRIWKLVPDQXDO
$ERXW7KLV0DQXDO
7KHLQIRUPDWLRQLQWKLVPDQXDOLVVXEMHFWWRFKDQJHZLWKRXWQRWLFH
7KLVPDQXDOKDVEHHQFUHDWHGZLWKH[WUDFDUH,QFDVHWKDW\RXKDYHDQ\FRPPHQWVRUTXHVWLRQVUHJDUGLQJWKLV
PDQXDOSOHDVHFRQWDFW\RXUORFDOGHDOHURURXU&XVWRPHU6HUYLFH&HQWHU
%HIRUHRSHUDWLQJWKLVVHWSOHDVHIXOO\XQGHUVWDQGWKHSUHUHTXLVLWHVXFKDVVSHFL¿FDWLRQVRUFRQVWUDLQWVRIWKH
KDUGZDUHDQGVRIWZDUH:HDUHQRWUHVSRQVLEOHDQGKDYHQROLDELOLW\IRUDQ\ORVVGDPDJHRULQMXU\DVDUHVXOWRI
PLVXVH
5HSURGXFWLRQFRS\LQJXVHPRGL¿FDWLRQDQGRUWUDQVPLVVLRQLQZKROHRULQSDUWRIWKLVPDQXDODUHSURKLELWHG
ZLWKRXWDQ\SULRUZULWWHQSHUPLVVLRQ
$OORWKHUSURGXFWVDQGFRPSDQ\QDPHVXVHGLQWKLVPDQXDODUHWUDGHPDUNVRUUHJLVWHUHGWUDGHPDUNVRIWKHLU
UHVSHFWLYHRZQHUV
7UDGHPDUN&UHGLWV
9*$DQG;*$DUHWUDGHPDUNVRI,QWHUQDWLRQDO%XVLQHVV0DFKLQHV&RUSRUDWLRQ
9(6$LVDUHJLVWHUHGWUDGHPDUNRIWKH9LGHR(OHFWURQLFV6WDQGDUG$VVRFLDWLRQ
/LFHQVHGE\%%(6RXQG,QFXQGHU863DQG
%%(DQG%%(V\PERODUHUHJLVWHUHGWUDGHPDUNVRI%%(6RXQG,QF
0DQXIDFWXUHGXQGHUOLFHQVHIURP%%(6RXQG,QF
:2:656DQGzV\PERODUHWUDGHPDUNVRI656/DEV,QF
:2:WHFKQRORJ\LVLQFRUSRUDWHGXQGHUOLFHQVHIURP656/DEV,QF
+'0,WKH+'0,ORJRDQG+LJK'H¿QLWLRQ0XOWLPHGLD,QWHUIDFHDUHWUDGHPDUNVRUUHJLVWHUHGWUDGHPDUNVRI+'0,
/LFHQVLQJ//&
(YHQLIQRVSHFLDOQRWDWLRQKDVEHHQPDGHRIFRPSDQ\RUSURGXFWWUDGHPDUNVWKHVHWUDGHPDUNVKDYHEHHQIXOO\
UHVSHFWHG
$ERXW6RIWZDUH
<RXPD\QRWDOWHUGHFRPSLOHGLVDVVHPEOHGHFU\SWRURWKHUZLVHUHYHUVHHQJLQHHUWKH6RIWZDUHLQVWDOOHGLQWKLV
SURGXFWZKLFKDUHSURKLELWHGE\ODZ
)RU\RXUVDIHW\SOHDVHUHDGWKHIROORZLQJSUHFDXWLRQVFDUHIXOO\EHIRUHXVLQJWKLVSURGXFW,PSURSHUXVHZRXOGFDXVHVHULRXVSHUVRQDOLQMXULHV
DQGRUGDPDJHWR\RXUSURSHUW\RUWKLVSURGXFW
$ERXWWKH6\PEROV
7KHIROORZLQJDUHWKHV\PEROVXVHGLQWKLVPDQXDODQGDI¿[HGRQWKHXQLWLWVHOI3OHDVHIXOO\XQGHUVWDQGWKHPHDQLQJVRIWKHV\PEROVEHIRUH
UHDGLQJWKHLQVWUXFWLRQVLQWKLVVHFWLRQ
:$51,1* 1HYHULJQRUHWKHLQVWUXFWLRQ7KHUHDUHULVNVRIVHULRXVLQMXULHVRUSRVVLEOHGHDWKWRWKHXVHU
&$87,21 'RQRWLJQRUHWKHLQVWUXFWLRQ7KHUHDUHSRVVLELOLWLHVRISHUVRQDOLQMXULHVDQGRUSURSHUW\GDPDJH
2WKHU6\PEROV
7KHWULDQJOHZLWKLOOXVWUDWLRQLVLQWHQGHGWRDOHUWWKHXVHUVWKDWWKHUHDUHSRVVLELOLWLHVRI¿UHH[SORVLRQRUKLJK
WHPSHUDWXUHVLIWKHSURGXFWLVKDQGOHGLPSURSHUO\
(DFKLOOXVWUDWLRQZLWKLQWKHWULDQJOHVSHFL¿HVWKHFRQWHQWVLQGHWDLO7KH¿JXUHRQWKHOHIWLVDQH[DPSOH
7KHFLUFOHZLWKGLDJRQDOOLQHDQGLOOXVWUDWLRQLQGLFDWHVDSURKLELWHGDFWLRQWKHV\PEROWRWKHOHIWLQGLFDWHVWKDW
GLVDVVHPEO\LVSURKLELWHG
7KLVV\PEROLQGLFDWHVDFRPSXOVRU\DFWLRQ
7KHFRQWHQWVZLOOEHFOHDUO\LQGLFDWHGLQDQLOOXVWUDWLRQRUQHDUE\WKHV\PEROWRWKHOHIWLQGLFDWHVWKDWWKHSRZHUSOXJ
VKRXOGEHGLVFRQQHFWHGIURPWKHSRZHURXWOHW
:$51,1*
7KHUHLVDULVNRIÀUHHOHFWULFVKRFNRUVHULRXVLQMXU\
ʄ8QSOXJWKHSRZHUFRUGLPPHGLDWHO\ZKHQVHULRXVSUREOHPVRFFXU
6HULRXVSUREOHPVVXFKDV
6PRNHDEQRUPDORGRURUQRLVHFRPHVRXWIURPWKHSURGXFW
'LVFRQQHFWWKH
1RSLFWXUHQRVRXQGRUGLVWRUWHGSLFWXUHRQWKHGLVSOD\ SOXJIURPWKH
)RUHLJQREMHFWVVXFKDVZDWHUPHWDOVHWFJHWLQVLGHWKHXQLW SRZHURXWOHW
'RQRWFRQWLQXHXVLQJWKHSURGXFWXQGHUWKHVHDEQRUPDOFRQGLWLRQV
7XUQRIIWKH0DLQ3RZHUXQSOXJWKH3RZHU&RUGDQGFRQWDFW\RXUGHDOHULPPHGLDWHO\
)RU\RXUVDIHW\QHYHUWU\WRUHSDLUWKHSURGXFWE\\RXUVHOI
ʄ'RQRWUHPRYHFRYHURUPRGLI\WKHSURGXFW
+LJKYROWDJHFRPSRQHQWVDUHLQVWDOOHGLQVLGHRIWKHXQLW5HPRYLQJFRYHUVFDQH[SRVH\RXWRKLJK
YROWDJHHOHFWULFDOVKRFNDQGRWKHUGDQJHURXVFRQGLWLRQV 'RQRW
&RQWDFW\RXUORFDOGHDOHUWRSHUIRUPVHUYLFLQJVXFKDVLQVSHFWLRQDGMXVWPHQWRUUHSDLUZRUN GLVDVVHPEOH
(1*/,6+
:$51,1*
7KHUHLVDULVNRIÀUHHOHFWULFVKRFNRUVHULRXVLQMXU\
ʄ,QVWDOOWKHXQLWDWDSURSHUDUHDZKHUHLWGRHVQRWH[SRVHDQ\RQHWRDQ\GDQJHU
,I\RXKLWDJDLQVWWKHHGJHRIWKHXQLW\RXPD\EHLQMXUHG
ʄ'RQRWSODFHDQ\REMHFWVRQWRSRIWKHXQLW
2EMHFWVVXFKDV
/LTXLGFRQWDLQHUVYDVH¿VKWDQNÀRZHUSRWFRVPHWLFVRUOLTXLGPHGLFLQH
,IZDWHURUDQ\OLTXLGVSLOORQWRWKHXQLWLWPD\FDXVHVKRUWFLUFXLWDQGUHVXOWLQ¿UHRUHOHFWULFDOVKRFN
,QFDVHWKDWLWKDSSHQVWXUQRIIWKH0DLQ3RZHUXQSOXJWKH3RZHU&RUGDQGFRQWDFW\RXUGHDOHULPPHGLDWHO\
'RQRWSODFHDQ\WKLQJKHDY\RQWRSRIWKHXQLW
'RQRWFOLPERQRUKDQJIURPWKHXQLW
'RQRWOHW\RXUSHWVJHWRQWRSRIWKHXQLW
ʄ'RQRWH[SRVHWKLVXQLWWRUDLQRUPRLVWXUH
1HYHUXVHWKLVXQLWLQWKHEDWKURRPRUVKRZHUURRP
%HZDUHZKHQ\RXXVHWKLVSURGXFWRXWVLGHHVSHFLDOO\LQUDLQ\RUVQRZ\ZHDWKHUDQGDWWKHEHDFKRU
ZDWHUIURQW
:KHQWKHSURGXFWJHWVZHWLWFRXOGFDXVH¿UHRUHOHFWULFDOVKRFN
ʄ8QSOXJWKLVXQLWGXULQJOLJKWQLQJVWRUP
7RUHGXFHWKHULVNRIHOHFWULFDOVKRFNGRQRWWRXFKWKHSURGXFWZKHQVWDUWVOLJKWQLQJ 'LVFRQQHFWWKH
SOXJIURPWKH
SRZHURXWOHW
ʄ'RQRWGRDQ\WKLQJWKDWPD\GDPDJHWKH3RZHU&RUG
'RQRWGDPDJHPRGLI\WZLVWIRUFLEO\EHQGKHDWRUSXOOH[FHVVLYHO\WKH3RZHU&RUG
'RQRWSODFHKHDY\REMHFWVLQFOXGLQJWKHXQLWLWVHOIRQWRSRIWKH3RZHU&RUG
,IWKH3RZHU&RUGLVGDPDJHGFRQWDFW\RXUGHDOHUIRUUHSDLUVRUH[FKDQJH
ʄ8VHRQO\ZLWKGHVLJQDWHGSRZHUVXSSO\YROWDJH
7RSUHYHQWWKHULVNRI¿UHDQGHOHFWULFDOVKRFNRSHUDWHWKLVSURGXFWRQO\ZLWKWKHSRZHUVXSSO\YROWDJHLQGLFDWHGRQWKH
XQLW
ʄ%HZDUHQRWWRGURSRUKDYHDQ\LPSDFWRQWKHXQLW
7DNHH[WUDFDUHZKLOHPRYLQJWKHXQLW
7KHSODVPDGLVSOD\SDQHOLVPDGHRIJODVV,QFDVHWKDWLWEUHDNV\RXPD\EHLQMXUHGE\WKHEURNHQSLHFHV
,QFDVHWKDW\RXGURSWKHXQLWRUWKHFDELQHWLVGDPDJHGWXUQRIIWKH0DLQ3RZHUXQSOXJWKH3RZHU&RUGDQGFRQWDFW
\RXUORFDOGHDOHULPPHGLDWHO\
&RQWLQXLQJXVHRIWKHSURGXFWZLWKDERYHFRQGLWLRQVPD\FDXVH¿UHRUHOHFWULFDOVKRFN
ʄ&OHDQGXVWRUPHWDOVRQRUDURXQGWKHEODGHRIWKHSRZHUSOXJUHJXODU\
&RQWLQXLQJXVHRIWKHSURGXFWZLWKDERYHFRQGLWLRQPD\FDXVH¿UHRUHOHFWULFDOVKRFN
$OZD\VXQSOXJWKH3RZHU&RUG¿UVWDQGFOHDQWKHEODGHVZLWKDGU\FORWK
ʄ'RQRWSODFHWKHXQLWRQDQXQVWDEOHVXUIDFH
8QVWDEOHSODFHVVXFKDV
7LOWHGVXUIDFHRUVKDN\UDFNWDEOHVWDQGRUWUROO\
,IWKHXQLWIDOOVGRZQLWFRXOGFDXVHSHUVRQDOLQMXU\
ʄ'RQRWSODFH\RXUÀQJHUVLQWRWKHJDSDWWKHRSHQHGIURQWGRRURIWKHXQLW
,I\RXU¿QJHUVDUHFDXJKWLQWKHIURQWGRRU\RXPD\EHLQMXUHG
'RQRWDOORZFKLOGUHQWRWRXFKWKHIURQWGRRURUSOD\QHDULW
&$87,21
ʄ'RQRWSODFHWKHXQLWDWDGXVW\SODFH
,WFRXOGFDXVHPDOIXQFWLRQ
ʄ'RQRWFRYHURUEORFNDQ\YHQWLODWLRQKROHVRQWKHSURGXFW
7KHXQLWZRXOGRYHUKHDWDQGLWFRXOGFDXVH¿UHRUGDPDJHWKHSURGXFWZKLFKPD\VKRUWHQLWVVHUYLFHOLIH
,QVWDOOWKHSURGXFWLQDFFRUGDQFHZLWKWKHLQVWUXFWLRQVLQWKLVPDQXDO
'RQRWSODFHWKHXQLWZLWKYHQWLODWLRQVLGHGRZQ
'RQRWLQVWDOOWKHXQLWRQWKHFDUSHWRUEHGFORWKHV
'RQRWFRYHUWKHXQLWZLWKWDEOHFORWKHWF
ʄ%HVXUHWRJURXQGWKHHDUWKFDEOHFRUUHFWO\
(VSHFLDOO\ZKHQ\RXXVH3RZHU&RUGDGDSWHUEHVXUHWRFRQQHFWWKHHDUWKFDEOHWRWKHJURXQGWHUPLQDO,QFRUUHFW
FRQQHFWLRQZRXOGFDXVH¿UHRUHOHFWULFDOVKRFN
6XSSO\FRQQHFW
)RU\RXUVDIHW\DOZD\VPDNHVXUHWRXQSOXJWKH3RZHU&RUGEHIRUHFRQQHFWRUGLVFRQQHFWWKHHDUWKFDEOH WKHJURXQGZLUH
ʄ)ROORZWKH$QWLWXPEOHPHDVXUHVLQWKLVPDQXDO
,IWKHXQLWWXPEOHVRYHUWKHUHLVDULVNRISHUVRQDOLQMXU\DQGSRVVLEOHGHDWK$OVRLWZRXOGGDPDJHWKHSURGXFW
VHULRXVO\
ʄ'RQRWLQVWDOOWKHXQLWQHDUWKHPHGLFDOGHYLFHV
7RSUHYHQWPDOIXQFWLRQRIWKHPHGLFDOGHYLFHVGRQRWXVHWKLVSURGXFWDQGPHGLFDOGHYLFHVLQWKHVDPHURRP
ʄ'RQRWSODFHD&57EDVHGWHOHYLVLRQQHDUWKHVSHDNHUVRIWKH3ODVPD7HOHYLVLRQ
,WFRXOGFDXVHWKHSDUWLDOGLVFRORUDWLRQRUEOXUULQJRIWKHLPDJHRQWKH&57EDVHGWHOHYLVLRQ
3OHDVHLQVWDOOLWDZD\IURPWKHVSHDNHUVRIWKHXQLW
ʄ'LVFRQQHFWDOORIWKHH[WHUQDOFRQQHFWLRQFDEOHVDQGGHWDFKWKHDQWLWXPEOHPHDVXUHVEHIRUH
PRYLQJWKHXQLW
,WPD\FDXVH¿UHHOHFWULFDOVKRFNRUSHUVRQDOLQMXULHV
ʄ&RQQHFWWKHSRZHUSOXJVHFXUHO\
,PSURSHUFRQQHFWLRQZLOOFDXVHRYHUKHDWLQJDQGPD\UHVXOWLQ¿UH
'RQRWWRXFKWKHEODGHVRIWKHSOXJZKLOHFRQQHFWLQJLWWRWKHZDOOVRFNHW,WFRXOGFDXVHHOHFWULFDOVKRFN
,IWKHSOXJLVQRW¿WWHGIRUWKHZDOOVRFNHWFRQWDFW\RXUGHDOHUIRUUHSODFHPHQW
ʄ'RQRWKDQGOHWKH3RZHU&RUGZLWKZHWKDQGV
,WFRXOGUHVXOWLQHOHFWULFDOVKRFN
ʄ'RQRWSXOOWKHFRUGZKHQ\RXXQSOXJWKH3RZHU&RUG
,WPD\GDPDJHWKHFRUGDQGFRXOGUHVXOWLQ¿UHRUHOHFWULFDOVKRFN
+ROGWKHSOXJZKHQGLVFRQQHFWLQJLW
ʄ8QSOXJWKH3RZHU&RUGZKHQ\RXGRQRWLQWHQGWRXVHWKHSURGXFWIRUORQJSHULRGVRIWLPH
ʄ+DQGOHWKHEDWWHULHVSURSHUO\
,PSURSHURULQFRUUHFWXVHRIWKHEDWWHULHVPD\FDXVHFRUURVLRQRUEDWWHU\OHDNDJHZKLFKFRXOGFDXVH¿UHSHUVRQDO
LQMXU\RUGDPDJHWRWKHSURSHUW\
8VHRQO\WKHW\SHVRIWKHEDWWHULHVZKLFKDUHLQGLFDWHGLQWKLVPDQXDO
'RQRWLQVWDOOQHZEDWWHULHVZLWKXVHGRQHV
,QVWDOOWKHEDWWHULHVFRUUHFWO\E\IROORZLQJWKHSRODULW\DQGLQGLFDWLRQVRQWKHEDWWHU\FRPSDUWPHQW
'RQRWGLVSRVHRIWKHXVHGEDWWHULHVDVGRPHVWLFZDVWH'LVSRVHRIWKHPLQDFFRUGDQFHZLWKWKHORFDOUHJXODWLRQV
35(&$87,216
(1*/,6+
ʄ'RQRWLQVWDOOWKHXQLWDWDUHDVZKHUHLWZLOOEHVXEMHFWHGWRKLJKWHPSHUDWXUHV
,WFRXOGGDPDJHWKHFDELQHWRUSDUWVRIWKHSURGXFW
'RQRWLQVWDOOQHDUDQ\KHDWVRXUFHVVXFKDVUDGLDWRUVKHDWUHJLVWHUVVWRYHVRURWKHUDSSDUDWXVWKDWSURGXFHKHDW
.HHSWKHXQLWRXWRIGLUHFWVXQOLJKW,WFRXOGLQFUHDVHWKHWHPSHUDWXUHRIWKHXQLWDQGFDXVHPDOIXQFWLRQ
ʄ0RWRU)DQ
7KH79KDVPRWRUIDQWRORZHULWVWHPSHUDWXUHDQGWKHIDQPD\SURGXFHQRLVHGXULQJLWVRSHUDWLRQ7KLVLVQRWDPDOIXQFWLRQ
ʄ9LHZLQJ$GYLFH
7KHOLJKWLQJRIWKHHQYLURQPHQWLQZKLFKWKHSURGXFWLVXVHGVKRXOGEHDSSURSULDWH7RREULJKWGDUNHQYLURQPHQWVDUHQRWJRRGIRU
\RXUH\HV
7DNHWLPHWRUHOD[\RXUH\HVRFFDVLRQDOO\
:KHQ\RXXVHWKLVSURGXFWYLHZIURPDGLVWDQFHHTXDOWRWRWLPHVWKHKHLJKWRIWKHVFUHHQ7KLVLVWKHEHVWYLHZLQJGLVWDQFHLQ
RUGHUWRSURWHFW\RXUH\HVDJDLQVWH\HVWUDLQ
$GMXVWWKHYROXPHWRDQDSSURSULDWHOHYHOHVSHFLDOO\GXULQJWKHQLJKW
ʄ:KHQWUDQVSRUWLQJWKLVSURGXFW
:KHQWKHSURGXFWQHHGVWREHWUDQVSRUWHGGXHWRPRYLQJRUUHSDLUXVHWKHFDUWRQER[DQGEXIIHUPDWHULDOWKDWFDPHZLWK
WKLVSURGXFW
'RQRWWUDQVSRUWWKLVSURGXFWRQLWVVLGH,WFRXOGGDPDJHWKHSDQHOJODVVRUGHJUDGHWKHSKRVSKRUVRIWKHSDQHO
ʄ.HHSUDGLRVDZD\IURPWKHXQLWZKLOHLQXVH
7KLVXQLWLVGHVLJQHGWRPHHWWKHLQWHUQDWLRQDO(0,VWDQGDUGVGXHWRSUHYHQWUDGLRLQWHUIHUHQFH+RZHYHUWKHXQLW
PD\JHQHUDWHQRLVHLQWKHUDGLR
,IWKHQRLVHLVKHDUGRQWKHUDGLRSOHDVHWU\WKHIROORZLQJDFWLRQV
$GMXVWWKHGLUHFWLRQRIWKHUDGLRDQWHQQDLQRUGHUQRWWRUHFHLYHWKHLQWHUIHUHQFHIURPWKHXQLW
.HHSWKHUDGLRDZD\IURPWKHXQLW
8VHFRD[LDOFDEOHIRUWKHDQWHQQD
ʄ$ERXWLQIUDUHGFRPPXQLFDWLRQGHYLFHV
7KHLQIUDUHGFRPPXQLFDWLRQGHYLFHVVXFKDVFRUGOHVVPLFURSKRQHVRUFRUGOHVVKHDGSKRQHVPD\QRWRSHUDWHSURSHUO\DURXQGWKH
XQLW,WLVEHFDXVHRIFRPPXQLFDWLRQIDLOXUH3OHDVHQRWHWKDWWKLVLVQRWPDOIXQFWLRQ
ʄ:KHQ\RXGLVSRVHRIWKLVSURGXFWDWWKHHQGRILWVOLIHIROORZWKHUHJXODWLRQVLQ\RXUUHVLGHQWLDODUHD
)RUPRUHLQIRUPDWLRQFRQWDFWWKHORFDODXWKRULW\RUWKHGHDOHUZKHUH\RXSXUFKDVHGWKHSURGXFW
&OHDQLQJDQG0DLQWHQDQFH
3OHDVHPDNHVXUHWRXQSOXJWKHSRZHUFRUGEHIRUHFOHDQLQJWKHXQLW
ʄ+RZWRFOHDQWKHSODVPDVFUHHQSDQHORIWKHXQLW
7KHSDQHOVXUIDFHLVVSHFLDOO\FRDWHGWRUHGXFHWKHUHÀHFWLRQDQGFXWLQIUDUHGUDGLDWLRQWKXVZLSHWKHSDQHOZLWKDOLQWIUHHDQGGU\
FORWKLQRUGHUWRSUHYHQWGDPDJHWRWKHFRDWLQJ
'RQRWXVHDFKHPLFDOFORWKRUFOHDQHU'HSHQGLQJRQWKHLQJUHGLHQWVLWPD\FDXVHGLVFRORUDWLRQDQGGDPDJHRQWKHFRDWLQJ
'RQRWZLSHZLWKDKDUGFORWKRUUXEKDUG,WPD\KXUWWKHFRDWLQJ
,QFDVHRIWKHJUHDV\GLUWVXFKDV¿QJHUSULQWZLSHZLWKDOLQWIUHHFORWKPRLVWHQHGE\DGLOXWHGQHXWUDOGHWHUJHQWVROXWLRQDQGWKHQ
ZLSHZLWKDVRIWDQGGU\FORWK
'RQRWXVHDVSUD\FOHDQHU,WFRXOGUHPRYHWKHFRDWLQJRUFDXVHPDOIXQFWLRQE\HQWHULQJLQVLGHRIWKHXQLW
ʄ+RZWRFOHDQWKHFDELQHWRIWKHXQLW
7KHIROORZLQJPD\FDXVHFUDFNGHIRUPDWLRQDQGSDLQWSHHOLQJ
'RQRWZLSHWKHFDELQHWZLWKEHQ]HQHWKLQQHUDQGRWKHUFKHPLFDOSURGXFWV
'RQRWVSUD\YRODWLOHVROXWLRQVVXFKDVLQVHFWLFLGHRYHUWKHFDELQHW
'RQRWOHDYHWKHFDELQHWLQSURORQJHGFRQWDFWZLWKSODVWLFRUUXEEHUPDWHULDOV
'RQRWXVHDFKHPLFDOFORWKFOHDQHURUZD['HSHQGLQJRQWKHLQJUHGLHQWVLWPD\FDXVHFUDFNDQGGHIRUPDWLRQ
8VHDOLQWIUHHFORWKWRFOHDQWKHFDELQHWDQGFRQWUROSDQHORIWKHXQLW,QFDVHRIWKHKHDY\GLUWZLSHZLWKDVRIWFORWKPRLVWHQHGE\
DGLOXWHGQHXWUDOGHWHUJHQWVROXWLRQDQGWKHQZLSHZLWKDVRIWDQGGU\FORWK
1HYHUXVHWKHIROORZLQJGHWHUJHQWV,WFRXOGFDXVHFUDFNGLVFRORUDWLRQDQGVFUDWFK
$FLGDONDOLQHGHWHUJHQWDOFRKROLFGHWHUJHQWDEUDVLYHFOHDQHUSRZGHUVRDS2$FOHDQHUFDUZD[JODVVFOHDQHUHWF
,PDJH5HWHQWLRQRI3ODVPD'LVSOD\
7KHSODVPDGLVSOD\KDVRQHRIFKDUDFWHULVWLFVWKDWUHVXOWVLQSDQHOLPDJHUHWHQWLRQGHSHQGLQJRQKRZWKHSODVPDGLVSOD\
LVXVHG7KHIROORZLQJDUHWKHFRPPRQUHDVRQVIRUDQGHIIHFWLYHSUHYHQWLYHPHDVXUHVDJDLQVWWKHLPDJHUHWHQWLRQ
&KDUDFWHULVWLFVRI,PDJH5HWHQWLRQ
,PDJHUHWHQWLRQLVFDXVHGE\SDUWLDOGHJUDGLQJWKHSKRVSKRUGXH
WRWKHSDUWLDOGLVSOD\RIFKDUDFWHUDQG¿JXUH
)RUH[DPSOHZKHQWKHFKDUDFWHUVDVVKRZQLQ)LJ$DUHGLVSOD\HG
FRQWLQXRXVO\IRUDORQJSHULRGRIWLPHRQO\WKHSKRVSKRUV5HG*UHHQ
%OXHGLVSOD\LQJWKHFKDUDFWHUVDUHGHJUDGHG&RQVHTXHQWO\ZKHQ
GLVSOD\LQJDQDOOZKLWHLPDJHRQWKHHQWLUHVFUHHQDVVKRZQLQ)LJ >)LJ$@ >)LJD@
DWKHPDUNVUHPDLQLQJE\WKHFKDUDFWHUVZLOOVKRZFRORUGLIIHUHQFHV
WKHUHIRUHQRWHWKDWLWLVQRWEXUQWUHPDLQVRIWKHSKRVSKRUV
7KHGHJUHHRILPDJHUHWHQWLRQLVSURSRUWLRQDOWRWKH%ULJKWQHVV
DQG'LVSOD\7LPHIRUWKHFKDUDFWHUVDQGRU¿JXUHV
7KHEULJKWHUWKHFKDUDFWHUVDQG¿JXUHWKHPRUHSKRVSKRULV
GHJUDGHG$VVKRZQLQ)LJ%LQFDVHRIGLVSOD\LQJLPDJHVWKDW >)LJ%@ >)LJE@
KDYHGLIIHUHQWEULJKWQHVVHDFKIRUDORQJWLPH)LJEVKRZVWKDW
WKHEULJKWHUWKHLPDJHWKHPRUHLWWHQGVWRUHPDLQ
7KHLOOXVWUDWLRQVDUHLPDJHVWRH[SODLQLPDJHUHWHQWLRQ7KHDFWXDOPDQQHUVRQWKHLPDJHUHWHQWLRQYDU\GHSHQGLQJ
RQVXFKFRQGLWLRQVDVRSHUDWLRQWLPHDQGEULJKWQHVV
0HWKRGWR5HGXFH,PDJH5HWHQWLRQ
8VH³6FUHHQ:LSH´IXQFWLRQRQWKHGLVSOD\ZKLFKDUHDYDLODEOHIURP)XQFWLRQ0HQX5HIHUWR
$IWHUGLVSOD\LQJFHUWDLQLPDJHVVXFKDVVWLOOLPDJHIRUDORQJWLPH³6FUHHQ:LSH´FDQEHXVHGWRUHGXFHWKHLPDJH
UHWHQWLRQE\GLVSOD\LQJDFRPSOHWHO\ZKLWHVFUHHQIRUDERXWaKRXUV
8VHLQFRPELQDWLRQZLWKPRYLQJLPDJHV
6LQFHWKHHQWLUHVFUHHQKDVUHODWLYHO\HYHQGHJUDGDWLRQRIWKHSKRVSKRULQPRYLQJLPDJHVLWFDQUHGXFHWKHSDUWLDO
LPDJHUHWHQWLRQ:HUHFRPPHQGWRXVHWRJHWKHUZLWKVXFKPRYLQJLPDJHVDV'9'
3OHDVHEHFDUHIXOWKDWOHDYLQJWKHLPDJHVLQIUHH]HPRGHIRUDORQJSHULRGRIWLPHFDQFDXVHLPDJHUHWHQWLRQ
6RPHWHOHYLVLRQEURDGFDVWVFRQWDLQLPDJHVRIZKLFKFXWWKHOHIWULJKWRUWRSERWWRPDQGLQZKLFKEURDGFDVWVWDWLRQ
LGHQWLW\RUDFORFNLVGLVSOD\HGIRUDORQJWLPHDWWKHVDPHSRVLWLRQ3OHDVHEHDZDUHWKDWLWPD\FDXVHLPDJHUHWHQWLRQ
&RPPRQ&KDUDFWHULVWLFVRI3ODVPD'LVSOD\3DQHOV
7KHIROORZLQJDUHWKHFRPPRQFKDUDFWHULVWLFVRI3ODVPD'LVSOD\3DQHOVGXHWRVWUXFWXUDOUHDVRQV3OHDVHQRWHWKDW
WKH\DUHQRWPDOIXQFWLRQV
5HVLGXDOLPDJH
:KHQDVWLOOLPDJHRUPHQXLVGLVSOD\HGRQWKHVFUHHQIRUDVKRUWWLPHDERXWDPLQXWHDQGWKHQVZLWFKHVWRDQRWKHU
LPDJHLWPD\OHDYHDQ³DIWHULPDJH´RQWKHVFUHHQ
7KHUHVLGXDOLPDJHZLOOGLVDSSHDURQLWVRZQ
6XUIDFHRQ3DQHO
7KHSODVPDSDQHOGLVSOD\VLPDJHVE\JHQHUDWLQJGLVFKDUJHVLQWHUQDOO\7KLVFRXOGUDLVHWKHWHPSHUDWXUHRIWKHGLVSOD\VXUIDFH
,QDGGLWLRQGRQRWDOORZDQ\IRUFHIXOLPSDFWWRWKHVXUIDFHRISDQHOEHFDXVHSODVPDSDQHOLV¿QHSURFHVVLQJJODVV
HYHQWKRXJKWKHSDQHOVWUHQJWKHQVE\WKHIURQW¿OWHUPDGHRIWHPSHUHGJODVV
'HIHFWLYH3L[HOVRQ3DQHO
7KHSODVPDGLVSOD\SDQHOLVPDQXIDFWXUHGZLWKKLJKSUHFLVLRQWHFKQRORJ\+RZHYHUWKHUHPLJKWEHVRPHSL[HOVWKDW
GRQRWOLJKWDUHEULJKWHUWKDQWKHRWKHUVRULQGLIIHUHQWFRORUVHWF
(QMR\QRWRQO\EHDXWLIXODQGKLJKTXDOLW\SLFWXUHVRQWKHGLVSOD\EXWDOVRYDULRXVNLQGVRIXVHIXODQGFRQYHQLHQW
(1*/,6+
IXQFWLRQVLQ\RXUGDLO\OLIH
/DUJHVFUHHQDQGKLJKGH¿QLWLRQSODVPDGLVSOD\
(QMR\KLJKUHVROXWLRQGLVSOD\ZLWK+[9SL[HOV
,PSURYHG'LJLWDOVLJQDOSURFHVVRU
+LJKTXDOLW\VRXQGZLWKGHHSHUULFKHUDQGG\QDPLFEDVVWRQHV
$FFHSWPRUHGLJLWDOLQSXWGHYLFHVZLWK+'0,WHUPLQDOV
*UHDWGLYHUVLW\RIFRQQHFWLQJWHUPLQDOVWRFRYHUZLGHUDQJHRIDXGLRYLVXDOHTXLSPHQWV
(QMR\WKHLPDJHIURP3&ZLWKODUJHKLJKGH¿QLWLRQ3ODVPDVFUHHQ
(DV\WRXVH2Q6FUHHQ'LVSOD\V\VWHPRSHUDWLQJZLWK5HPRWHFRQWURO
/RZSRZHUFRQVXPSWLRQZLWK3RZHU6DYLQJIHDWXUH
6833/,('$&&(6625,(6
&KHFNWKHVXSSOLHGDFFHVVRULHVEHIRUHLQVWDOODWLRQ
,QFDVHRIPLVVLQJRUGDPDJHGSOHDVHFRQWDFWWKHGHDOHULPPHGLDWHO\
7KHW\SHRISRZHUSOXJSURYLGHGPD\EHGLIIHUHQWIURPWKLVGUDZLQJIRUVRPHFRXQWULHV
237,21
$VN\RXUORFDOGHDOHUIRUIXUWKHUGHWDLOV
'HVNWRS6WDQG6'*
0DLQ8QLW
)URQW3DQHO .&DELQHW
33DQHO
$5HPRWH&RQWURO5HFHLYHU
. /,QGLFDWLQJ/DPS
3 10DLQ3RZHU6ZLWFKRQWKHERWWRPVXUIDFH
4&RQWURO3DQHODQG)URQW,QSXWVHHEHORZIRUGHWDLOV
( 2'HVNWRS6WDQGRSWLRQ
(6SHDNHU
4 2 1 / $
5HDU3DQHO
/ .7HUPLQDO%RDUG([WHUQDO'HYLFH&RQQHFWLRQ
33RZHU&RUG6RFNHW
$+DQGJULSV
/0RWRU)DQ
$
3OHDVHUHIHUWR a IRUWKHGHWDLOHGLQIRUPDWLRQ
IRUWKHFRQQHFWLRQV
3 .
&RQWURO3DQHOLQFOXGLQJIURQWLQSXW
&$87,21
$ 'RQRWSODFH\RXU¿QJHUVLQWRWKH
JDSDWWKHRSHQHGGRRU,I\RXU
¿QJHUVDUHFDXJKWLQWKHIURQW
3XVKKHUHWRRSHQWKHGRRU GRRU\RXPD\EHLQMXUHG
$3XVKWKHERWWRPFHQWHURI
% WKHIURQWGRRUWRXQORFN .)URQW,QSXW$9
%/LIWLWXSIURPWKHXQGHUVLGH 30HQX5HWXUQEXWWRQ
RIWKHGRRU $,QSXW6HOHFW2.EXWWRQ
/9ROXPH'RZQŻEXWWRQ
19ROXPH8SŹEXWWRQ
4&KDQQHO'RZQźEXWWRQ
2&KDQQHO8SŸEXWWRQ
. 3$/142( (6XE3RZHUEXWWRQ
5HPRWH&RQWURO
(1*/,6+
.6XE3RZHU
3)XQFWLRQ6HOHFW79'9'67%
3UHVVWKLVEXWWRQWRVHOHFWIXQFWLRQPRGH
LQGLFDWLQJ/('ODPS
1RUPDOO\VHOHFW³79´
. * $,QSXW6HOHFW'9'&RQWURO
3UHVVWKLVEXWWRQWRFKDQJHLQSXWPRGH
,QDGGLWLRQ\RXFDQXVHWKHVHEXWWRQVZKLOH
3 RSHUDWLQJWKHVHOHFWHGEUDQGRI'9'SOD\HU
/0HQX
1&XUVRU
42.
$ 26RXQG0RGH
6RXQGPRGHFDQEHFKDQJHGHDFKWLPHSUHVVHG
LQWKHIROORZLQJVHTXHQFH0RYLHĺ0XVLFĺ
6SHHFKĺ)DYRULWH
/ + (&+,,,
7KLVLVH[FOXVLYHO\IRU79DXGLR$1,&$0PRGH
,9ROXPH8S'RZQ
1 "3URJUDP6HOHFW>3DJH6HOHFW@
3UHVVWKHVHEXWWRQVWRVHOHFWD79SURJUDP
4 GLUHFWO\)RURUGLJLWVFKDQQHOVHOHFWLRQ
SUHVV EXWWRQLQDGYDQFH
5HIHUWR IRUGHWDLOV
0)UHH]H>+ROG@
2 3UHVVWKLVEXWWRQWRFKDQJHWKHSLFWXUHWRIUHH]H
PRGH3UHVVLWDJDLQWRUHWXUQWRQRUPDOSLFWXUH
( $OVRLWKROGVWKHSDJHLQWHOHWH[WPRGH
, #>&RORU5HG*UHHQ<HOORZ%OXH@
%>,QGH[@
&7LPH>&DQFHO@
3UHVVWKLVEXWWRQWRGLVSOD\WKHWLPHZKHQ
UHFHLYLQJD79SURJUDP
7KHWLPHLVQRWGLVSOD\HGLIWKHVLJQDOUHFHLYHG
GRHVQRWKDYHDQ\WLPHLQIRUPDWLRQ
'797H[W>79Ù7H[W@
" 7KLVVZLWFKHVEHWZHHQWKH79PRGHDQGWKH
7HOHWH[WPRGH
)=RRP>7H[WÙ797H[W@
3UHVVWKLVEXWWRQWRFKDQJHSLFWXUHVL]H
*5HFDOO
3UHVVWKLVEXWWRQWRVKRZWKHLQSXWVLJQDOVWDWXV
+5HWXUQ
0 <RXFDQXVHWKLVWRUHWXUQWRWKHSUHYLRXVPHQX
3LFWXUH0RGH
3LFWXUHPRGHFDQEHFKDQJHGHDFKWLPHSUHVVHG
# LQWKHIROORZLQJVHTXHQFH'\QDPLFĺ1DWXUDOĺ
&LQHPD
&KDQQHO8S'RZQ>3DJH6HOHFW@
% 0XWH
& 1RW$YDLODEOH
' >5HYHDO@
>6XEWLWOH@
) 1RW$YDLODEOH
1RW$YDLODEOH
6RPHEXWWRQVDUHRQO\IRU7HOHWH[WPRGHDQGRWKHUEXWWRQVKDYHGLIIHUHQWIXQFWLRQVLQ7HOHWH[WPRGHIURP
WKHXVHRI79PRGH7KRVHEXWWRQVDUHLQGLFDWHGE\>@5HIHUWR$ERXW7HOHWH[WRQ
5HPRWH&RQWURO%DWWHULHV,QVWDOODWLRQ +DQGOLQJWKH5HPRWH&RQWURO
7KLVUHPRWHFRQWURORSHUDWHVRQ³$$´EDWWHULHV 8VHWKHUHPRWHFRQWUROZLWKLQDERXWPIURP
IURQWRIWKHXQLW¶VUHPRWHFRQWUROVHQVRUDQG
2SHQWKHEDWWHU\FRPSDUWPHQWFRYHU ZLWKLQGHJUHHVRQERWKVLGHV
6OLGHRSHQWKHEDWWHU\
FRPSDUWPHQWFRYHURQWKH
EDFNVLGHRIWKHUHPRWHFRQWUROLQ
WKHGLUHFWLRQRIDQDUURZ
,QVWDOOWKHEDWWHULHV
,QVWDOO³$$´EDWWHULHVLQFOXGHGPDNLQJ
VXUHWKHSRODULWLHVPDWFKWKHLQGLFDWLRQ
LQVLGHWKHFRPSDUWPHQW
&ORVHWKHEDWWHU\FRPSDUWPHQWFRYHU
7RFORVHWKHEDWWHU\FRPSDUWPHQW
FRYHUVOLGHWKHFRYHULQWKH
GLUHFWLRQRIDQDUURZWLOOLWFOLFNV
VKXW
&$87,21
,WFRXOGFDXVHFRUURVLRQRUEDWWHU\OHDNDJHDQGPD\UHVXOWLQSK\VLFDOLQMXU\
DQGRUSURSHUW\GDPDJHLQFOXGLQJÀUH
1HYHUPL[XVHGDQGQHZEDWWHULHVLQWKHGHYLFH
5HSODFHDOOWKHEDWWHULHVLQDGHYLFHDWWKHVDPHWLPH
5HPRYHWKHEDWWHULHVLIWKHUHPRWHFRQWUROLVQRWJRLQJWREHXVHGIRUDQH[WHQGHGSHULRGRIWLPH
7RDYRLGSRVVLEOHIDLOXUHUHDGWKHIROORZLQJLQVWUXFWLRQVDQGKDQGOHWKH
UHPRWHFRQWUROSURSHUO\
'RQRWGURSRUFDXVHLPSDFWWRWKHUHPRWHFRQWURO
'RQRWVSLOOZDWHURUDQ\OLTXLGRQWKHUHPRWHFRQWURO
'RQRWSODFHWKHUHPRWHFRQWURORQDZHWREMHFW
'RQRWSODFHWKHUHPRWHFRQWUROXQGHUWKHGLUHFWVXQOLJKWRUQHDUVRXUFHVRIH[FHVVLYHKHDW
&DXWLRQ:KHQ0RYLQJWKH0DLQ8QLW
$VWKLVSURGXFWLVKHDY\ZKHQHYHULWLVPRYHGWZRSHRSOHDUHUHTXLUHGWRWUDQVSRUWLWVDIHO\
:KHQWUDQVIHUULQJWKHXQLWKROGWKHXQLWE\XVLQJWKHKDQGJULSVDWWKHEDFNVLGHRIWKHSDQHO6HHWKH¿JXUHEHORZIRUGHWDLOV
+DQGJULSV
6DIHW\3UHFDXWLRQRQ0DLQ8QLW,QVWDOODWLRQ
(1*/,6+
5HDG6$)(7<35(&$87,216 WR FDUHIXOO\EHVLGHVWKLVSDJH
:KHQLQVWDOOLQJWKHXQLWXVHWKHRSWLRQDO'HVNWRS6WDQG6'*3OHDVHUHIHUWRWKHXVHUPDQXDORIWKHVWDQG
7KH'HVNWRS6WDQG2SWLRQKDVEHHQXVHGIRUWKHLOOXVWUDWLRQLQWKLVPDQXDO
:KHQLQVWDOOLQJWKHPDLQXQLWEHVXUHWRXVHWKHVSHFL¿HGPRXQWXQLWVLQRUGHUWRREWDLQPD[LPXPSHUIRUPDQFH
DQGPDLQWDLQWKHVDIHW\
:HDVVXPHQRUHVSRQVLELOLW\RUOLDELOLW\IRUSHUVRQDOLQMXULHVRUSURSHUW\GDPDJHVFDXVHGE\XVHRIRWKHUPRXQW
XQLWVRULPSURSHULQVWDOODWLRQ
$VIRUWKHLQVWDOODWLRQLQVWUXFWLRQSOHDVHUHDGHDFKXVHUPDQXDORIWKHPRXQWXQLWVIRU'HVNWRS6HWXS:DOO
0RXQWLQJDQG&HLOLQJ0RXQWLQJ
,QFDVHRIXVLQJ:DOORU&HLOLQJ0RXQWLQJXQLWE\FRQWDFWLQJ\RXUORFDOGHDOHUDVNWKHVSHFL¿HGLQVWDOODWLRQ
VSHFLDOLVWWRVHWXS1HYHUDWWHPSWWRLQVWDOOLWE\\RXUVHOI,WFRXOGFDXVHLQMXULHVRUGDPDJHV
3OHDVHOHDYHWKHDGHTXDWHVSDFHDURXQGWKLVXQLWLQRUGHU FPRUPRUH
WRDYRLGLQFUHDVLQJWKHLQWHUQDOWHPSHUDWXUHDQGNHHS
VDIHW\
0DNHVXUHQRWWREORFNDQ\YHQWLODWLRQKROHV &RUG
RU
'RQRWLQVWDOOWKHXQLWLQWKHVPDOOVSDFHVXFKDVLQVLGH FKDLQ
WKHUDFNFORVHWRUWKHER[
&ODPS
/HDYHPRUHWKDQFPRIFOHDUDQFHIURPHDFKVLGHRI
XQLWDQGFPIURPWKHWRSRIXQLWWRZDOO
/HDYHDWOHDVWFPRIFOHDUDQFHEHKLQGUHDUXQLW
$QWL7XPEOH0HDVXUHV
,QVWDOOLQDVWDEOHSODFHDQGLPSOHPHQWVDIHW\PHDVXUHDJDLQVWRYHUWXUQLQJ
6HFXULQJWRDZDOORUSLOODU FRUGRUFKDLQ
8VLQJDFRPPHUFLDOO\DYDLODEOHFRUGFKDLQDQGFODPS
FRUGRUFKDLQ
VHFXUHWKHVHWWRDZDOORUSLOODU
KRRN
VFUHZ :DOORU3LOODU
FODPS
6HFXULQJWRFHLOLQJ
8VLQJDFRPPHUFLDOO\DYDLODEOHFRUGFKDLQDQGFODPSVHFXUHWKHVHWWRDFHLOLQJ
)RUPRUHLQIRUPDWLRQUHJDUGLQJWKHPRXQWLQJRIWKHXQLWSOHDVHFRQWDFW\RXUGHDOHU
3OHDVHLQVWDOOWKHXQLWDWDSURSHUDUHDZKHUHLWGRHVQRWH[SRVHDQ\RQHWRWKHGDQJHURIKLWWLQJWKHPVHOYHVIRU
H[DPSOHWKHLUKDQGVKHDGRUIDFHHWFDJDLQVWWKHHGJHRIWKHXQLWDQGFDXVHSHUVRQDOLQMXU\
7HUPLQDO3RVLWLRQV
5HDU
3 .3RZHU&RUG6RFNHW
, 3$HULDO6RFNHW
$/142
" $$9
(#%,/%$"2-1,$,#1,$%.
!,$
0 1$9
40RQLWRU2XWDQG6XE:RRIHU
!,$/2+"-*!.%.%'(/0%.%$0.!$%+!.)/-&-1,$,#
6HH
(6HUYLFH8VHRQO\
,6HUYLFH8VHRQO\
. "3&&RQQHFWLRQ7HUPLQDO
'VXE3LQ
0+'0,DQG+'0,
)URQW
#$9
%+HDGSKRQH7HUPLQDO
% #
&RQQHFWLQJ3URFHGXUH
7KLVXQLWLVUHDG\IRUYDULRXVNLQGVRIFRQQHFWLRQV0DNHDFRQQHFWLRQLQWKHIROORZLQJVWHSV%HVXUHWRWXUQRIIWKH
0DLQ3RZHU¿UVWZKHQFRQQHFWLQJH[WHUQDOHTXLSPHQWV
&RQQHFW3RZHU&RUGWRWKHUHDUSDQHO
&RQQHFW$HULDO/HDG
&RQQHFW\RXUH[WHUQDOHTXLSPHQWVWRWKHXQLWLIDQ\
&RQQHFWWKH3RZHU3OXJWRWKH:DOO6RFNHW
&RQQHFWLQJ3RZHU&RUGWRWKH5HDU3DQHO
&RQQHFW3RZHU&RUGWRWKHXQLW
0DNHVXUHQRWWRFRQQHFWWKH3RZHU3OXJWRWKH:DOO6RFNHW
XQWLODOOFRQQHFWLRQVDUHFRPSOHWHG
&RQQHFWLQJ$HULDO/HDG
7KHUHDUHWZRZD\VWRFRQQHFW$HULDO/HDG
.:KHQ\RXGRQRWKDYHDQ\RWKHUH[WHUQDOHTXLSPHQW
&RQQHFWWKH$HULDO/HDGGLUHFWO\LQWRWKH6RFNHWDWUHDUSDQHO
3:KHQ\RXKDYHRQHRUPRUHH[WHUQDOGHYLFHVWRFRQQHFW
8VH5)FDEOHWRFRQQHFWEHWZHHQHDFKHTXLSPHQWDQG
$QWHQQD >([DPSOH&RQQHFWLQJ$QWHQQD
&RQQHFWWKH$HULDO/HDGWRDQHTXLSPHQWµ,Q¶6RFNHW WKURXJK67%DQG9&5@
PDUNHG
&RQQHFWWKH5)FDEOHIURPWKHHTXLSPHQWµ2XW¶WRWKHRWKHUHTXLSPHQWµ,Q¶
7KHQFRQQHFWIURPWKHHTXLSPHQWµ2XW¶WR³$17´RQWKHSODVPDVFUHHQ6RFNHWRQPDUNHG
3UHFDXWLRQVZKHQFRQQHFWLQJWKHDHULDO
3OHDVHXVHDFRD[LDOFDEOHZKLFKLVIUHHIURPLQWHUIHUHQFHWRFRQQHFWWKHDHULDO$YRLGXVLQJDSDUDOOHOÀDWIHHGHU
ZLUHDVLQWHUIHUHQFHPD\RFFXUFDXVLQJUHFHSWLRQWREHXQVWDEOHDQGVWULSHQRLVHWRDSSHDURQWKHVFUHHQ
$YRLGXVLQJLQGRRUDHULDODVWKLVPD\EHDIIHFWHGE\LQWHUIHUHQFH3OHDVHXVH&$79QHWRURXWGRRUDHULDO
)RUVDIHW\LQVWDOODQH[WHUQDODHULDOFRQIRUPLQJWR$6DSSOLFDEOHIRU$XVWUDOLDRQO\
,IQRLVHDSSHDUVLQWKHSLFWXUHRI9+)/RZEDQGFKDQQHOSOHDVHXVHDGRXEOHVKLHOGHGFDEOHQRWSURYLGHGIRU
5)/($'6WRUHGXFHWKHQRLVH
&RQQHFWLQJ3URFHGXUHFRQWLQXHG
(1*/,6+
&RQQHFWLQJWR([WHUQDO(TXLSPHQW
7HUPLQDOVRQ5HDU
$9DQG$9FDQEHFRQQHFWHGWRWKHHTXLSPHQWZLWKHLWKHU&RPSRQHQWRU&RPSRVLWHRXWSXW'HSHQGLQJRQZKHWKHUWKH
<9,'(2LQSXWRI\RXUVHOHFWHGHTXLSPHQWLV<VLJQDORU9LGHRVLJQDOLWDXWRPDWLFDOO\UHJDUGVDV&RPSRQHQWRU&RPSRVLWH
:KHQXVLQJDV&RPSRVLWHGRQRWLQVHUWWKHMDFNVLQWR3%RU35
,1 287
>([DPSOH@
,I\RXUH[WHUQDOGHYLFHKDVD&RPSRQHQWWHUPLQDO&20321(17FRQQHFWLRQLVUHFRPPHQGHGIRUKLJKHUTXDOLW\SLFWXUH
$9FDQEHFRQQHFWHGWRWKHHTXLSPHQWZLWKDQ69LGHRRXWSXWDQG&RPSRVLWHRXWSXW
>([DPSOH@
,1 287
,I\RXUH[WHUQDOGHYLFHKDVD6YLGHRWHUPLQDO69,'(2FRQQHFWLRQLVUHFRPPHQGHGIRUKLJKHUTXDOLW\SLFWXUH
,IERWK6YLGHRDQGYLGHRLQSXWWHUPLQDOVRI$9DUHFRQQHFWHGDWWKHVDPHWLPH6YLGHRZLOOKDYHLWVSULRULW\
0RQLWRU2XWFDQEHXVHGWRGLVSOD\VDPHLPDJHDVPDLQXQLWRQDQRWKHUPRQLWRU
:KHQWKLVRXWSXWWHUPLQDOLVFRQQHFWHGWRDQH[WHUQDOPRQLWRUZLWKD2KPWHUPLQDOWKHVDPHLPDJHIURP
FRPSRVLWH$9a69LGHR$9RU5)VLJQDOFDQEHGLVSOD\HGWRWKHH[WHUQDOPRQLWRU
287 ,1
>([DPSOH@
9LGHRRXWSXWLVQRWDYDLODEOHIURPFRPSRQHQW5*%RU+'0,LQSXW
$XGLRRXWSXWLVQRWDYDLODEOHZKHQ+'0,+'0,FDEOHLVFRQQHFWHG
6XE:RRIHUWHUPLQDOFDQEULQJWKHGHHSEDVVVRXQGIURPWKHH[WHUQDOVSHDNHU
>([DPSOH@
287 ,1
RU
&RQQHFWLQJ3URFHGXUHFRQWLQXHG
>([DPSOH@
RU
+'0, WHUPLQDOVFDQEHFRQQHFWHGWRWKHGHYLFHVZLWK+'0,RXWSXW
,IWKHH[WHUQDOGHYLFHKDV'9,RXWSXWWKLVFDQEHDYDLODEOHZLWK+'0,'9,FDEOH,QFDVHRIXVLQJWKH+'0,'9,FDEOHFRQQHFWDQDORJ
DXGLRVLJQDOWR3&5*%+'0,$QDORJ$XGLR,QSXWWHUPLQDO
,1 287 >([DPSOH@
+'0, '9,
+'0, +'0,
,QIRUPDWLRQ
+'0,+LJK'H¿QLWLRQ0XOWLPHGLD,QWHUIDFHLVQH[WJHQHUDWLRQPXOWLPHGLD,2LQWHUIDFH2QO\RQHFDEOHLVXVHGWR
WUDQVPLWDOOYLGHRDXGLRFRQWUROVLJQDOVZKLFKFUHDWHVHDV\FRQQHFWLRQ
0RUHRYHUWKRVHGLJLWDOVLJQDOVFDQSURGXFHKLJKTXDOLW\GDWDZLWKRXWDQ\GHJUDGDWLRQ
<RXDUHSURYLGHGZLWKWZR+'0,WHUPLQDOVRQHRIWKHPRVWUHPDUNDEOHIHDWXUHV
,I\RXUH[WHUQDOGHYLFHKDVD+'0,WHUPLQDO+'0,FRQQHFWLRQLVUHFRPPHQGHGIRUKLJKHUTXDOLW\SLFWXUHDQGVRXQG
3&5*%+'0,DQDORJDXGLRLQSXWWHUPLQDO
7KLVWHUPLQDOFDQEHXVHGLQRQHRIWKHIROORZLQJFDVHVRQO\
3&5*%7HUPLQDO
.7KHH[WHUQDOGHYLFHLVFRQQHFWHGWRWKH3&5*%WHUPLQDO
RIWKH79
" "
!,$/2+"-*!.%0.!$%+!.)/-&!"/,#
+'0,7HUPLQDO
37KH'9,RXWSXWRIDQH[WHUQDOGHYLFHLVFRQQHFWHGWRWKH
!
(#%,/%$"2-1,$,#1,$%.
!,$
+'0,7HUPLQDO
!,$/2+"-*!.%.%'(/0%.%$0.!$%+!.)/-&-1,$,#
$7KH'9,RXWSXWRIDQH[WHUQDOGHYLFHLVFRQQHFWHGWRWKH
+'0,WHUPLQDOXVLQJWKH+'0,'9,FDEOH
0DNHVXUHWKDWWKHYLGHRDQGDXGLRWHUPLQDOVDUHFRQQHFWHG
WRWKHVDPHH[WHUQDOGHYLFH
3&5*%+'0,$QDORJ$XGLR
$ERXWWKHRXWSXWIRUPDWRIDQH[WHUQDOGHYLFHUHIHUWR ,QSXW7HUPLQDO
5HFRPPHQGHG6LJQDO/LVWRQ
&RQQHFWLQJ3URFHGXUHFRQWLQXHG
(1*/,6+
7HUPLQDOVRQ)URQW
6LQFHWKHIROORZLQJWHUPLQDOVDUHORFDWHGRQWKHIURQWLWLVYHU\FRQYHQLHQWWRFRQQHFWDQH[WUDGHYLFHRQDWHPSRUDU\
EDVLVDIWHUFRPSOHWLQJWKHFRQQHFWLRQVRQWKHUHDUSDQHO
$9FDQEHFRQQHFWHGWRWKHHTXLSPHQWZLWK69LGHRRXWSXWDQGFRPSRVLWHRXWSXW
>([DPSOH@
287 !!
,1
,I\RXUH[WHUQDOGHYLFHKDV6YLGHRWHUPLQDO69,'(2FRQQHFWLRQLVUHFRPPHQGHGIRUKLJKHUTXDOLW\SLFWXUH
,IERWK6YLGHRDQGYLGHRLQSXWWHUPLQDOVRI$9DUHFRQQHFWHGDWWKHVDPHWLPH6YLGHRZLOOKDYHLWVSULRULW\
+HDGSKRQH7KHGHWDLOVHWWLQJVFDQEHDGMXVWHGIURP$XGLR0HQXRQSDJH
0LQL6WHUHRSOXJ
7KHDXGLRIURPWKHVSHDNHUZLOOEHPXWHGZKHQFRQQHFWLQJWKHKHDGSKRQHWRWKLVWHUPLQDO
&RQQHFWLQJ3URFHGXUHFRQWLQXHG
&RQQHFWLQJWKHSOXJLQWRWKHZDOOVRFNHW
&RQQHFWWKH3RZHU&RUGDIWHUFRPSOHWLQJDOORWKHUFRQQHFWLRQV
7KHW\SHRISOXJLVGLIIHUHQWIURPWKLVGUDZLQJIRUVRPHFRXQWULHV
&$87,21
8VHRQO\WKH3RZHU&RUGSURYLGHG
'RQRWXVHDSRZHUVXSSO\YROWDJHRWKHUWKDQWKDWLQGLFDWHG$&9+],WPD\FDXVH¿UHRUHOHFWULFVKRFN
)RUWKHSODVPDWHOHYLVLRQDWKUHHFRUHSRZHUFRUGZLWKDJURXQGWHUPLQDOLVXVHGIRUHI¿FLHQF\SURWHFWLRQ$OZD\VEH
VXUHWRFRQQHFWWKH3RZHU&RUGWRDWKUHHSURQJHGJURXQGHGRXWOHWDQGPDNHVXUHWKDWWKHFRUGLVSURSHUO\JURXQGHG
,I\RXXVHDSRZHUVRXUFHFRQYHUWHUSOXJXVHDQRXWOHWZLWKDJURXQGWHUPLQDODQGVFUHZGRZQWKHJURXQGOLQH
(QVXUHWKDWERWKHQGVRISRZHUFRUGDUHHDVLO\DFFHVVLEOH
,I\RXKDYHWRFKDQJHWKHSRZHUFRUGSOHDVHXVHWKHFHUWL¿HGSRZHUFRUGWKDWPHHWV\RXUUHJLRQ¶VVDIHW\VWDQGDUG
,QIRUPDWLRQ
+RZWRVHFXUHWKHFDEOHV
$IWHUFRQQHFWLQJDOORIWKHFDEOHVWRWKHWHUPLQDOVVHFXUHWKHPZLWKWKHFODPS
:KHQ\RXVHFXUHWKHFDEOHVSOHDVHEHFDUHIXOQRWWRWLJKWHQWRRPXFK
+RZWRFODPS
7RVHW
6HWWKHFODPSLQWKH
GLUHFWLRQRIWKHDUURZ
" "
!,$/2+"-*!.%0.!$%+!.)/-&!"/,#
!
(#%,/%$"2-1,$,#1,$%.
!,$
!,$/2+"-*!.%.%'(/0%.%$0.!$%+!.)/-&-1,$,#
7RXQIDVWHQ
/RRVHQWKHKRRNDQG
SXOOLQWKHGLUHFWLRQRI
WKHDUURZ
+RRN
:LWKODUJHFODPS
3RZHU2Q2II
(1*/,6+
1RZWXUQ2QWKHPDLQSRZHUWRWKHXQLW0DNHVXUHWKDWWKH3RZHU&RUG
KDVSOXJJHGLQWRWKHZDOOVRFNHW
7RWXUQ2QWKHSRZHURIWKHXQLW
3UHVVWKH0DLQ3RZHUVZLWFKRQWKHXQLW
7KH,QGLFDWLQJ/DPSZLOOLOOXPLQDWHVLQ5HG6WDQGE\PRGH 0DLQ3RZHUVZLWFKRQWKHERWWRPVXUIDFH
6XE3RZHUEXWWRQ
3UHVV6XE3RZHUEXWWRQHLWKHURQWKHFRQWUROSDQHORURQWKHUHPRWHFRQWURO
7KHFRORURIWKH,QGLFDWLQJ/DPSWXUQVLQWR*UHHQDQGWKHLPDJHZLOO
GLVSOD\RQWKHVFUHHQ
7RWXUQ2IIWKHSRZHURIWKHXQLW
3UHVV6XE3RZHUEXWWRQHLWKHURQWKHFRQWUROSDQHORURQWKHUHPRWHFRQWURO
7KHLPDJHGLVDSSHDUVIURPWKHVFUHHQDQGWKH,QGLFDWLQJ/DPSWXUQV
LQWR5HG6WDQGE\PRGH
3UHVV0DLQ3RZHUVZLWFKWRFRPSOHWHO\WXUQ2IIWKHSRZHURIWKHXQLW 6XE3RZHUEXWWRQ
7KH,QGLFDWLQJ/DPS6WDWXV&KHFN
,QGLFDWLQJ/DPS
3RZHU6WDWXV 3RZHU6ZLWFK6WDWXV
6WDWXV
2II 2II 0DLQSRZHUĺ2II
0DLQSRZHUĺ2Q
5HG 6WDQGE\PRGH
6XE3RZHUEXWWRQĺ2II
0DLQSRZHUĺ2Q
*UHHQ 2Q
6XESRZHUEXWWRQĺ2Q
0DLQSRZHUĺ2Q
2UDQJH 3RZHU6DYHPRGH
6XE3RZHUEXWWRQĺ2Q
$ERXW3RZHU6DYHPRGHVHH³3RZHU6DYH0RGH´DQG³:KHQ)ROORZLQJ0HVVDJHV$SSHDURQWKH6FUHHQ´RQ
DQG IRUGHWDLOV
,IWKHLPDJHGRHVQRWDSSHDURQWKHVFUHHQDWDOORUKDYHDQ\SUREOHPVHH7528%/(6+227,1*RQ a ,W
PD\KHOS\RXWRVROYHWKHSUREOHPV
<RXFDQWXUQ21WKHSRZHURQO\E\SUHVVLQJWKH6XE3RZHUEXWWRQGXULQJWKH6WDQGE\PRGH
'RQRWVZLWFKWKHSRZHU2Q2IIUHSHDWHGO\LQDVKRUWSHULRGRIWLPH,WFRXOGFDXVHPDOIXQFWLRQ
7RDYRLGVXGGHQVXUJHVRIHOHFWULFLW\ZKHQWKHSRZHUFRPHVEDFNRQWXUQ2IIWKHPDLQSRZHURIWKHXQLWEHIRUH\RX
OHDYHLIWKHUHLVDSRZHUFXWGXULQJXVHRIWKHXQLW
)LUVW7LPH6HWXS
:KHQ\RXWXUQ21WKH79IRUWKH¿UVWWLPH\RXU79DXWRPDWLFDOO\OHDGVWRWKHVHWWLQJV
RI³/DQJXDJH´DQG³$XWR7XQLQJ´ ޓޓޓޓޓ
ޓޓޓޓޓޓਛᢥ
❥ޓޓޓޓޓ㜚ਛᢥ
ޓޓޓޓޓ
7KH¿UVWVFUHHQDSSHDUHGZLOODVN\RXWRFKRRVHWKHODQJXDJHRI\RXU79¶VGLVSOD\ ޓޓޓޓޓ
6HOHFWWKHODQJXDJH\RXSUHIHUUHGIURPWKHOLVWDQGSUHVV EXWWRQ
2QFHVHOHFWLQJWKHODQJXDJH³$XWR7XQLQJ´VFUHHQDSSHDUVWRVWDUWVFDQQLQJ
FKDQQHOV
6HWXS
$XWR7XQLQJ
,I\RXZDQWWRFKDQJHWKHVHWWLQJDIWHUFRPSOHWLQJWKLV¿UVWWLPHVHWXSSUHVV 6FDQQLQJ&KDQQHO1XPEHU
EXWWRQDQGVHWXSLQGLYLGXDOO\5HIHUWR &DQFHO
&DQFHO
2.
9ROXPH83'2:1
7RLQFUHDVHWKHVRXQGYROXPHSUHVV EXWWRQRQWKHUHPRWHFRQWURO
RU9ROXPH8SEXWWRQRQWKHFRQWUROSDQHO
7KH9ROXPH,QGLFDWRUYDOXHRQWKHVFUHHQZLOOVKLIWULJKW
7RGHFUHDVHWKHVRXQGYROXPHSUHVV EXWWRQRQWKH
UHPRWHFRQWURORU9ROXPH'RZQEXWWRQRQWKHFRQWUROSDQHO
7KH9ROXPH,QGLFDWRUYDOXHRQWKHVFUHHQZLOOVKLIWOHIW
0XWHEXWWRQ
9ROXPH8S'RZQEXWWRQ
0XWH
7RPXWHWKHVRXQGSUHVV EXWWRQRQWKHUHPRWHFRQWURO
7KHVRXQGRIWKHXQLWLVWHPSRUDULO\WXUQHG2II
7KHFRORURIWKH9ROXPH,QGLFDWRUZLOOWXUQLQWRPDJHQWD
ZKLOHPXWLQJWKHYROXPH
7RWXUQWKHVRXQGEDFNSUHVV EXWWRQDJDLQRU9ROXPH8SEXWWRQRQ
HLWKHUUHPRWHFRQWURORUWKHFRQWUROSDQHO
7KHFRORURIWKH9ROXPH,QGLFDWRUZLOOWXUQEDFNWRJUHHQ
9ROXPH8S'RZQ
<RXFDQGHFUHDVHWKHYROXPHE\SUHVVLQJ EXWWRQ EXWWRQ
ZKLOHWKHVRXQGLVPXWHG
7KH9ROXPH,QGLFDWRU
,QSXW6ZLWFKLQJWR79$9a+'0,DQG5*%
(1*/,6+
%\SUHVVLQJ,QSXW6HOHFWEXWWRQ\RXFDQVZLWFKWKHLQSXW ,QSXW6HOHFWEXWWRQV
7RZDWFKDFWXDOEURDGFDVWSUHVV,QSXW6HOHFWEXWWRQRQWKHFRQWUROSDQHO
WKHQXPHULFEXWWRQVRU&KDQQHO8S'RZQEXWWRQRQWKHUHPRWHFRQWURO
7RGLVSOD\WKHLPDJHRXWSXWWLQJIURPWKHH[WHUQDOHTXLSPHQWV
FRQQHFWHGWRHDFKWHUPLQDO79$9a+'0,DQG5*%VHOHFW
FRUUHVSRQGLQJPRGH
3UHVV,QSXW6HOHFWEXWWRQVRQWKHUHPRWHFRQWURO
&KDQQHO
8S'RZQEXWWRQ
7KH,QSXWPRGHVFDQEHDOVRVZLWFKHGE\XVLQJ,QSXW6HOHFWEXWWRQ
RQWKHFRQWUROSDQHO
(DFKWLPHWKLVEXWWRQLVSUHVVHGWKHVFUHHQGLVSOD\VFRUUHVSRQGLQJ
PRGHE\IROORZLQJRUGHU
,QSXW6HOHFW &KDQQHO8S'RZQ
EXWWRQ
7RGLUHFWO\JREDFNWR79PRGHSUHVVLQJFKDQQHO8S'RZQEXWWRQVRQ
HLWKHUUHPRWHFRQWURORUWKHFRQWUROSDQHO
$OVR\RXFDQXVHWKHQXPHULFEXWWRQVRQWKHUHPRWHFRQWURO
,QSXW6LJQDO6FUHHQ'LVSOD\
5(&$//
7KH LQSXW VLJQDO VWDWXV FDQ EH GLVSOD\HG RQ WKH VFUHHQ E\
EXWWRQ
SUHVVLQJWKH EXWWRQRIWKHUHPRWHFRQWURO
7KHGLVSOD\ZLOOJRRXWLQDSSUR[LPDWHO\VHFRQGV
79 79SRVLWLRQ
1DPH
6RXQGPRGH
2IIWLPHU
2QWLPHU
9,'(2 ,QSXWPRGH
6LJQDOPRGH
R 6LJQDOIRUPDW
5*%
,QSXWPRGH
,QSXWKRUL]RQWDOIUHTXHQF\
,QSXWYHUWLFDOIUHTXHQF\
2IIWLPHU
:LWKWKH2Q6FUHHQ'LVSOD\V\VWHP\RXFDQDFFHVVWKHYDULRXVNLQGVRIWKHIHDWXUHVDQGIXQFWLRQVLQWKLVSURGXFW
%DVLF2SHUDWLRQ
3UHVV EXWWRQRQWKHUHPRWHFRQWURORU0HQXEXWWRQRQWKHFRQWUROSDQHO
RIWKHXQLW7KH0DLQ0HQXLVGLVSOD\HGRQWKHVFUHHQDVVKRZQRQWKHULJKW
7RVHOHFWWKHLWHPSUHVV EXWWRQ
7KHVHOHFWHGLWHPZLOOEHKLJKOLJKWHGLQ*UHHQ 0DLQ0HQX!
3UHVV EXWWRQWRVHW\RXUVHOHFWLRQ
7KHVHOHFWHGPHQXSDJHZLOOEHGLVSOD\HGRQWKHVFUHHQ
0HQXEXWWRQ
8VH EXWWRQWRFKRRVHWKHLWHPRQWKH0(18SDJH
3UHVV EXWWRQWRVHW\RXUVHOHFWLRQ
8VH EXWWRQWRDGMXVWWKHLWHPYDOXHVRUFKRRVHRSWLRQV
3UHVV EXWWRQWRVHW\RXUVHOHFWLRQ
7RH[LWIURPWKHPHQXSUHVV EXWWRQ
7KH26'PHQXVFUHHQZLOOEHFORVHGDXWRPDWLFDOO\ZKHQQRRSHUDWLRQKDV
EHHQPDGHIRUDERXWRQHPLQXWH
,IWKHLWHPLQPHQXLVVKRZQLQJUD\LWPHDQVWKDWLWFDQQRWEHVHOHFWHGRU
DGMXVWHG
0HQXEXWWRQ
/DQJXDJH0HQX
6HOHFWWKHODQJXDJHIURPWKHOLVWVRWKDW\RXFDQGLVSOD\WKH26'PHQXLQWKHVHOHFWHGODQJXDJH
+RZWRVHW/DQJXDJH
ޓޓޓޓޓ
ޓޓޓޓޓޓਛᢥ
(QWHUWKH³/DQJXDJH´PHQXIURPWKH0DLQ0HQX ❥ޓޓޓޓޓ㜚ਛᢥ
ޓޓޓޓޓ
ޓޓޓޓޓ
6HOHFWWKHDSSURSULDWHODQJXDJHZLWK EXWWRQIURPWKHOLVW
7KHVHOHFWHGLWHPZLOOEHKLJKOLJKWHGLQ*UHHQ
3UHVV EXWWRQWRVHW\RXUVHOHFWLRQ
7KHEODFNGRWLVPDUNHGLQVLGHRIWKHFLUFOHZKHQWKHVHOHFWLRQLV¿[HG
3UHVV EXWWRQWRH[LWIURPWKHHQWLUH26'PHQX
6HWXS0HQX79PRGH
(1*/,6+
:LWKWKLVPHQX\RXFDQDFFHVVYDULRXVNLQGVRIIHDWXUHVUHODWLQJWR79FKDQQHOVHWWLQJV
6HOHFWHG,WHPV 6HWXSKLQW
6HOHFWWKHZD\WRGLVSOD\WKHFKDQQHOVRQWKHVFUHHQ
EHWZHHQ³´³´³´DQG$9E\XVLQJ EXWWRQ
³´LVIRUGLJLWVFKDQQHOVHOHFWLRQ
³´LVIRUGLJLWVFKDQQHOVHOHFWLRQDQG
3RVLWLRQ
³´LVIRUGLJLWFKDQQHOVHOHFWLRQ
0RGH 7KHSRVLWLRQQXPEHUVDUHGLVSOD\HGRQWKHXSSHUULJKW
$XWR7XQLQJ FRUQHURIVFUHHQ
a$9
7KHFKDQQHOQXPEHUaDUHGLVSOD\HGDV& DQGWKH
'LUHFW
FKDQQHOQXPEHUaDUHGLVSOD\HGDV6
7XQHWKHORFDOFKDQQHOVDXWRPDWLFDOO\
6HDUFK
3UHVV EXWWRQWRVWDUWVHDUFKLQJ
0RYHWKHFXUVRUWRWKH¿UVWGLJLWDQGVHOHFWWKHOHWWHUV
ZLWK EXWWRQ
0DQXDO7XQLQJ 0RYHWRWKHQH[WGLJLWZLWKŹEXWWRQ
1DPH 3UHVV EXWWRQDJDLQZKHQ\RX¿QLVKLQSXWWLQJDOOWKH
OHWWHUV
7KHVHOHFWDEOHOHWWHUVDUHDVIROORZV³´a´´³$´a´=´³´
³´EODQN³´GLVSOD\HGDVEODQNDQG³´SHULRG
$XWR
0
6RXQG
%* 6HOHFWWKHVRXQGV\VWHPIURPGLIIHUHQWPRGHV
6\VWHP
,
'.
,QIRUPDWLRQ
8VH$9ZKHQFRQQHFWLQJHTXLSPHQWVXFKDVD9&5YLDDQ5)DHULDOW\SHFDEOH
6HOHFWHG,WHPV 6HWXSKLQW
$XWR
3$/
&RORU
6\VWHP 6(&$0 6HOHFWFRORUV\VWHPIURPGLIIHUHQWPRGHV
176&
176&
0DQXDO7XQLQJ ,WDOORZV\RXWRVNLSXQUHJLVWHUHGFKDQQHOVDXWRPDWLFDOO\
2II ZKHQ\RXXVHFKDQQHOXSGRZQEXWWRQVWRVHOHFW
6NLS FKDQQHOV
2Q 7KLVIXQFWLRQZLOODXWRPDWLFDOO\VNLSXQDYDLODEOHFKDQQHOV
ZKHQVHWWRRQ
2II 7KHQRLVHRQWKHVFUHHQRULQWHUIHUHQFHFRXOGEHUHGXFHG
15
2Q HVSHFLDOO\DWWKHDUHDRIZHDNHOHFWULF¿HOG
Ź,QFUHDVHWKHIUHTXHQF\GDWDIRUWKHPDLQWXQHU
)LQH7XQLQJ a
Ż'HFUHDVHWKHIUHTXHQF\GDWDIRUWKHPDLQWXQHU
<RXFDQFKDQJHWKHRUGHURIFKDQQHOVDVIROORZV
0RYHWKHFXUVRUWRWKHFKDQQHOURZ\RXZDQWWRFKDQJH
RUGHUDQGWKHQSUHVV EXWWRQ
7KHFRORURIWKHOHWWHUVRQWKHGHVLJQDWHGOLQHZLOOEH
6RUW WXUQHGLQWRJUHHQEUDFNHWDQGZLWK>@
0RYHWKHGHVLJQDWHGURZE\XVLQJ EXWWRQ
3UHVV EXWWRQWR¿[WKHSRVLWLRQ
7KLVIXQFWLRQLVQRWDYDLODEOHJUD\HGRXWZKHQWKH$XWR
7XQLQJ0RGHLVVHWWR>'LUHFW@
6HOHFW7HOHWH[W/DQJXDJHIURPGLIIHUHQWFDWHJRULHV
:HVW(XURSH(DVW(XURSH5XVVLDQ$UDELFDQG)DUVL
DFFRUGLQJWRWKHDUHD
([DPSOH
:HVW(XURSH $VLDQFRXQWULHVZKHUHWKH7HOHWH[W
7HOHWH[W/DQJXDJH LVEURDGFDVWLQJLQ(QJOLVKVXFKDV
6LQJDSRUH$XVWUDOLDDQG0DOD\VLD
(DVW(XURSH 3RODQG6ZHGHQ+XQJDU\
5XVVLDQ 5XVVLD
$UDELF $UDEFRXQWULHV
)DUVL ,UDQ
2II :KHQQRDLUZDYHKDVEHHQUHFHLYHGDQGQRRSHUDWLRQ
$XWR2II KDVEHHQPDGHIRUPLQXWHVLQ79PRGHLWWXUQVWR
2Q VWDQGE\PRGHDXWRPDWLFDOO\
6HWXS0HQX$9PRGH
(1*/,6+
:LWKWKLVPHQX\RXFDQVHOHFWRUDGMXVWWKHFRQGLWLRQRIWKHLQSXWVLJQDOVIURPHDFKWHUPLQDO
6HOHFWHG,WHPV 6HWXSKLQW
6\VWHP 'RQRWFKDQJHWKHRULJLQDOVHWWLQJ
6\VWHP 6\VWHP(XURSH$VLD6\VWHP6RXWK$PHULFD
6\VWHP &RPSRVLWHDQG6YLGHRLQSXWRQO\
$XWR
3$/
6(&$0 6HOHFWWKHFRORUV\VWHPGHSHQGLQJRQWKHLQSXWVLJQDO
6\VWHP *HQHUDOO\VHOHFW>$XWR@WRUHFHLYHDOOVLJQDOVIRUERWK
176&
6\VWHPDQG6\VWHP
&RORU 176& ,QFDVHWKDWWKHLQSXWVLJQDOKDVWRRPXFKQRLVHWKH
$9a$9
6\VWHP 3$/ VLJQDOOHYHOLVWRRORZRUWKHRSHUDWLRQLVXQVWDEOHLQ
>$XWR@VHOHFWWKHV\VWHPDFFRUGLQJWRWKHFRORUV\VWHP
$XWR RIWKHLQSXWVLJQDO
176&0 &RPSRVLWHDQG6YLGHRLQSXWRQO\
6\VWHP
3$/0
3$/1
6HWXS0HQX5*%PRGH
:LWKWKLVPHQX\RXFDQDGMXVWWKHGLVSOD\FRQGLWLRQRIWKHLPDJHZKLFKLVLQSXWWLQJIURPWKH5*%WHUPLQDOV
%\SUHVVLQJźEXWWRQDWWKHERWWRPRIWKHVW6HWXSPHQXSDJHWKHQG6HWXSPHQXSDJHZLOODSSHDURQWKHVFUHHQ
6HOHFWHG,WHPV 6HWXSKLQW
$GMXVW+RUL]RQWDO3RVLWLRQ9HUWLFDO3RVLWLRQ+RUL]RQWDO
&ORFNDQG&ORFN3KDVHDXWRPDWLFDOO\
3UHVV EXWWRQWRVWDUWDXWRDGMXVWPHQW
$XWR$GMXVW 7KHPHVVDJH³$XWR$GMXVWLQJ´LVGLVSOD\HG
'HSHQGLQJRQWKHW\SHRIWKHVLJQDOWKHUHLVDSRVVLELOLW\WKDW
WKHGLVSOD\PD\QRWEHDGMXVWHGLQLWVRSWLPXPFRQGLWLRQZLWK
WKLVIXQFWLRQ,QWKDWFDVHSOHDVHDGMXVWHDFKLWHPPDQXDOO\
$GMXVWWKHGLVSOD\SRVLWLRQKRUL]RQWDOO\
+RUL]RQWDO3RVLWLRQ
a :KHQWKHSRVLWLRQH[FHHGVWKHSRVVLEOHUDQJHWKH
GLVSOD\FRORUZLOOWXUQLQWR0DJHQWD
$GMXVWWKHGLVSOD\SRVLWLRQYHUWLFDOO\
9HUWLFDO3RVLWLRQ
a :KHQWKHSRVLWLRQH[FHHGVWKHSRVVLEOHUDQJHWKH
GLVSOD\FRORUZLOOWXUQLQWR0DJHQWD
+RUL]RQWDO&ORFN
a 0LQLPL]HWKHYHUWLFDOVWULSHVRQWKHVFUHHQ
0LQLPL]HWKHEOXUULQJRIWKHOHWWHUVDQGVWULSHVRQKRUL]RQWDOURZ
&ORFN3KDVH
a 0DNHVXUHWRDGMXVW+RUL]RQWDO&ORFN¿UVWEHIRUH
DGMXVWLQJ&ORFN3KDVH
5HVHWDOOWKHVHWYDOXHVRQWKLV0HQXSDJHWRRULJLQDOIDF
5HVHW
WRU\VHWWLQJV
2II 6HOHFWZKHWKHULQGLFDWLQJWKH3&VLJQDOIUHTXHQF\LQIRU
)UHTXHQF\'LVSOD\
2Q PDWLRQRQ,QSXW6LJQDO6FUHHQ'LVSOD\RUQRW
2II
7KLVIXQFWLRQLVDYDLODEOHRQO\IRU:;*$VLJQDO
:;*$0RGH [
5HIHUWR³5HFRPPHQGHG6LJQDO/LVW´RQ
[
,QIRUPDWLRQ
7KHLWHPVLQGLFDWHGE\³ ´FDQEHDXWRPDWLFDOO\VWRUHGGHSHQGLQJRQWKHVLJQDOPRGH
7KHVLJQDOPRGHLVLGHQWL¿HGE\WKH+RUL]RQWDO9HUWLFDOIUHTXHQF\DQGWKHV\QFVLJQDOSRODULW\ZKLFKKDVDOPRVW
VDPHYDOXHVLQDOOWKHDERYHLWHPVPLJKWEHUHJDUGHGDVWKHVDPHVLJQDO
7KHLWHP³$XWR$GMXVW´FDQQRWEHVWRUHG3UHVV WRVWDUWDXWRDGMXVWPHQWDVQHHGHG
)XQFWLRQ0HQX
(1*/,6+
7KLVPHQXSURYLGHVYDULRXVZD\VWRSURWHFW\RXUSDQHOUHGXFHSRZHUFRQVXPSWLRQDQGVHWXSXWLOL]LQJWKHXVHIXO
IXQFWLRQVVXFKDV)UHH]H0RGH
!
"
#"
$
!
!$
6HOHFWHG,WHPV 6HWXSKLQW
2II
0LQ 7KLVKHOSVWRUHGXFHLPDJHUHWHQWLRQE\VKLIWLQJWKH
0LQ ZKROHSLFWXUHLQVPDOODPRXQWVDURXQGWKHVFUHHQDWVHW
6FUHHQ6DYHU
0LQ LQWHUYDOV
0LQ <RXFDQVHOHFWWKHLQWHUYDOEHWZHHQHDFKVKLIW
0LQ
2Q 7KLVGLVSOD\VWKHZKLWHSDWWHUQWRUHGXFHWKHLPDJH
UHWHQWLRQ
6FUHHQ:LSH 2Q&RQWLQXRXV2SHUDWLRQ
0LQ
0LQ/LPLWHG2SHUDWLRQIRUPLQXWHV$IWHU
PLQXWHV79JRHVWRVWDQGE\PRGH
2II 7KLVFDQFKDQJHWKHFRORURIVLGHEDUVVKRZLQJXSLQ
QRUPDOPRGH2IIJUD\2QEODFN
%ODFN6LGH3DQHO
,WLVUHFRPPHQGHGWRVHW2IIWRUHGXFHLPDJHUHWHQWLRQ
2Q 7KLVFDQQRWEHVWRUHG7KHGHIDXOWVHWWLQJLVRII
'XULQJ$9LQSXWWKLVKHOSVWRUHGXFHSRZHUFRQVXPSWLRQ
2II ZKHQWKHUHLVQRYLGHRVLJQDO,QFDVHRIVHOHFWLQJ$9
9LGHR3RZHU6DYH LQSXWWHUPLQDOZKLFKGRHVQRWKDYHVLJQDOLQSXWLWFKDQJHV
2Q WKHSRZHUVWDWXVWRSRZHUVDYHPRGHLQ$9$9DQG
VWDQGE\PRGHLQRWKHU$9LQSXW6HH LQGHWDLOV
6LQJOH 7KLVLVWKHXVHIXOIXQFWLRQWRZDWFKWKHSURJUDPLQDVWLOO
SLFWXUH6HH LQGHWDLOV
)UHH]H0RGH
6SOLW 6LQJOHIXOOVL]HGLPDJH
6SOLWKDOIVL]HGLPDJHV2QHLVVWLOOZKLOHWKHRWKHULVDFWLYH
3DQRUDPLF
3DQRUDPLF <RXFDQVHWWKHGLVSOD\VL]HIRU79LQSXWVFUHHQDSSHDULQJ
'HIDXOW=RRP
¿UVWZKHQWXUQLQJWKHPDLQSRZHU2Q
)XOO
2II
(FR0RGH 7KLVFDQUHGXFHWKHSRZHUFRQVXPSWLRQ
2Q
,QIRUPDWLRQ
7KHLWHP³6FUHHQ:LSH´FDQQRWEHVWRUHG
6HOHFW³2Q´RU³0LQ´WRFRQGXFWWKLVIXQFWLRQDVQHHGHG
5HIHUWR DERXWLPDJHUHWHQWLRQ
)XQFWLRQ0HQXFRQWLQXHG
6HOHFWHG,WHPV 6HWXSKLQW
3LFWXUH0HQX79$9PRGH
(1*/,6+
,QWKLVPHQX\RXFDQPDNHVSHFL¿FDGMXVWPHQWVIRUWKHSLFWXUHEDVHGRQ\RXUSUHIHUHQFH
%\SUHVVLQJźEXWWRQDWWKHERWWRPRIHDFKPHQXSDJHWKHQH[W3LFWXUHPHQXSDJHZLOODSSHDURQWKHVFUHHQ
6HOHFWHG,WHPV 6HWXSKLQW
'\QDPLF <RXFDQPDNHWKHEHVWVHOHFWLRQIURPPRGHVGHSHQGLQJ
RQWKHOLJKWLQJFRQGLWLRQDQGLQWHQGHGXVH
3LFWXUH0RGH 1DWXUDO '\QDPLF6XLWDEOHIRUWKHEULJKWHUFRQGLWLRQV
1DWXUDO6XLWDEOHIRUWKHQRUPDOOLJKWLQJFRQGLWLRQ
&LQHPD &LQHPD6XLWDEOHIRUZDWFKLQJPRYLH
7KLVDGMXVWVWKHFRQWUDVWWRPHHWWKHOLJKWLQJHQYLURQPHQW
E\XVLQJ EXWWRQ
7KHPD[LPXPYDOXHFDQEHH[WHQGHGWR>@E\
SUHVVLQJDQGKROGLQJŹEXWWRQDW>@ZKLFKFKDQJHV
&RQWUDVW
WKHFRORUEHWZHHQWKRVHQXPEHUVIURPJUHHQWR
PDJHQWD7KLVLVWKHVSHFLDOIHDWXUHSUHSDUHGIRUWKH
GDUNVFHQH$WWKHQRUPDOFRQGLWLRQLWLVUHFRPPHQGHG
WRVHWWKHYDOXHOHVVWKDQ>@
:LWKWKLVIXQFWLRQEODFNLVDGMXVWHGWRFKDQJHWKHRYHUDOO
%ULJKWQHVV
EULJKWQHVVE\XVLQJ EXWWRQ
,WFDQDGMXVWFRORUGHQVLW\EDVHGRQ\RXUSUHIHUHQFHE\
&RORU
XVLQJ EXWWRQ
3UHIHUUHGVKDUSQHVVFDQEHDGMXVWHGE\SUHVVLQJŻ
6KDUSQHVV
EXWWRQIRU6RIWHULPDJHRUŹEXWWRQIRU6KDUSHULPDJH
3UHVVLQJŻEXWWRQHQKDQFHVUHGDQGZHDNHQVJUHHQ
ZKLOHSUHVVLQJŹEXWWRQZHDNHQVUHGDQGHQKDQFHV
7LQW
JUHHQ7KHVHWXSKLQWLVDGMXVWLQJIRUWKHUHDOLVWLFVNLQ
FRORU
6HOHFWHG,WHPV 6HWXSKLQW
2II 2Q,WDXWRPDWLFDOO\DGMXVWVWKHVXLWDEOHWLQWFRORUGHQVLW\
'&RORU0DQDJHPHQW
DQGEULJKWQHVVRQLPDJHV
2Q 2II6HWLWRIILIWKHLPDJHGRHVQRWORRNQDWXUDO
2II
/RZ
%ODFN(QKDQFHPHQW
$GMXVWVWKHEODFNOHYHOFRPSHQVDWLRQ
0LGGOH
+LJK
2II
/RZ
'15
7KLVLVDQRLVHUHGXFWLRQV\VWHPIRUSLFWXUHVLJQDO
0LGGOH
+LJK
2II
7KLVLVDQRLVHUHGXFWLRQV\VWHPIRU03(*SLFWXUHVLJQDO
03(*15
/RZ
H[DJDLQVWPRVTXLWRQRLVHDQGEORFNQRLVH
+LJK
2II 2Q$XWRPDWLFDOO\LGHQWLI\LILWLVWKHPRYLH¿OPDQG
)LOP0RGH
IDLWKIXOO\UHSURGXFHVWKHRULJLQDO¿OPLPDJHV
2Q 2II6HWWR2IILIWKHLPDJHGRHVQRWORRNQDWXUDO
2II 7KLVLVDYDLODEOHRQO\ZKHQUHFHLYLQJ176&3$/
/RZ FRPSRVLWHVLJQDO7KLVUHGXFHVWKHGRWDQGFRORUEOXUULQJ
'&RPE)LOWHU
LQPLQXWHVFDOHVVRWKDWLWFDQUHSURGXFHSXUHUFRORU
0LGGOH 7KLVLVQRWDYDLODEOHIRU176&3$/3$/1DQG
+LJK 3$/0V\VWHP
(DFKLWHPRQWKLVPHQXVFUHHQFDQEHUHVWRUHGWRWKH
5HVHW
RULJLQDOIDFWRU\VHWWLQJVE\SUHVVLQJ EXWWRQ
(1*/,6+
6HOHFWHG,WHPV 6HWXSKLQW
$PSOLWXGH
2Q:KHQ\RXZDQWWRVHWVSHFL¿FDGMXVWPHQWVLQHDFKRI
5HG
WKH&RORU7HPSHUDWXUHPRGHV<RXFDQDGMXVWRQ
*UHHQ
WKHDPSOLWXGHDQGFXWRII7KHVHWWLQJVUHÀHFWRQWKH
&RORU7HPSHUDWXUH
%OXH
$PSOLWXGHVXEGXHWKHIROORZLQJFRORUVRQWKHEULJKWHU
2Q
&RORU7HPS$GMXVW
&XWRII SDUWVa
5HG
&XWRIIVXEGXHWKHIROORZLQJFRORUVRQWKHGDUNHU
SDUWVa
*UHHQ
%OXH
2II5HPDLQVDVGHIDXOWVHWWLQJ
2II
,QIRUPDWLRQ
7KHLWHPVLQGLFDWHGE\³ ´FDQEHVWRUHGIRUHDFKRILQSXWVDQGSLFWXUHPRGHV'\QDPLF1DWXUDO&LQHPD
<RXFDQHQMR\GLIIHUHQWVHWWLQJGHSHQGLQJRQWKHVHOHFWHGLQSXWVXFKDV9&5LQ$9
,QDGGLWLRQWKHLWHPLQGLFDWHGE\³
´FDQEHVWRUHGIRUHDFKRIFRORUWHPSHUDWXUHPRGHV
3LFWXUH0HQX5*%PRGH
,QWKLVPHQX\RXFDQPDNHVSHFL¿FDGMXVWPHQWVIRUWKH5*%SLFWXUHEDVHGRQ\RXUSUHIHUHQFH
!"
! !
! #
!
!"
" !
! !
!
!!"
6HOHFWHG,WHPV 6HWXSKLQW
7KLVDGMXVWVWKHFRQWUDVWWRPHHWWKHOLJKWLQJHQYLURQPHQW
E\XVLQJ EXWWRQ
7KHPD[LPXPYDOXHFDQEHH[WHQGHGWR>@E\
a SUHVVLQJDQGKROGLQJŹEXWWRQDW>@ZKLFKFKDQJHV
&RQWUDVW
a WKHFRORUEHWZHHQWKRVHQXPEHUVIURPJUHHQWR
PDJHQWD7KLVLVWKHVSHFLDOIHDWXUHSUHSDUHGIRUWKH
GDUNVFHQH$WQRUPDOFRQGLWLRQLWLVUHFRPPHQGHGWR
VHWWKHYDOXHOHVVWKDQ>@
(1*/,6+
6HOHFWHG,WHPV 6HWXSKLQW
$PSOLWXGH
2Q:KHQ\RXZDQWWRVHWVSHFL¿FDGMXVWPHQWVLQHDFKRI
5HG
WKH&RORU7HPSHUDWXUHPRGHV<RXFDQDGMXVWRQ
*UHHQ
WKHDPSOLWXGHDQGFXWRII7KHVHWWLQJVUHÀHFWRQWKH
&RORU7HPSHUDWXUH
%OXH
2Q $PSOLWXGH6XEGXHWKHIROORZLQJFRORUVRQWKH
&RORU7HPS$GMXVW &XWRII EULJKWHUSDUWVa
5HG
&XWRII6XEGXHWKHIROORZLQJFRORUVRQWKHGDUNHU
SDUWVa
*UHHQ
%OXH
2II5HPDLQVDVGHIDXOWVHWWLQJ
2II
(DFKLWHPRQWKLVPHQXVFUHHQFDQEHUHVWRUHGWRWKHRULJLQDOIDFWRU\VHWWLQJV
5HVHW
E\SUHVVLQJ EXWWRQ
,QIRUPDWLRQ
7KHLWHPLQGLFDWHGE\³ ´FDQEHVWRUHGIRUHDFKRIFRORUWHPSHUDWXUHPRGHV
$XGLR0HQX
:LWKWKLVPHQX\RXFDQDGMXVWDQGFXVWRPL]HWKHDXGLRFRQGLWLRQDV\RXOLNH
<RXFDQPRYHRQWRWKHQH[WPHQXVFUHHQE\SUHVVLQJźEXWWRQDWWKHERWWRP
&!
&!! !'
#
$$ )
#& $$
!(
!(
#%!&
%# "#
"! !&
$% $%
%%%&#
6HOHFWHG,WHPV 6HWXSKLQW
0RYLH RXFDQVHOHFWWKHPRVWVXLWDEOHVRXQGFRQGLWLRQIURP
<
0XVLF DOWHUQDWLYHVDFFRUGLQJWRWKHFRQWHQWV
$XGLR0RGH
6SHHFK ,I\RXZDQWWRDGMXVWHDFKLWHPYDOXHEDVHGRQ\RXU
)DYRULWH SUHIHUHQFHVHOHFW³)DYRULWH´
7UHEOH
a $GMXVWWKH7UHEOH
%DVV
a $GMXVWWKH%DVV
2II
656
7KLVV\VWHPJLYHV\RXWKHG\QDPLF'VRXQG
2Q
2II
7UX%DVVJLYHV\RXWKHHQFKDQFHGEDVVVRXQG
7UX%DVV
/RZ
6HOHFWLWGHSHQGLQJRQ\RXUSUHIHUHQFH
+LJK
2II %%(+LJK'H¿QLWLRQ6RXQGUHVWRUHVFODULW\DQGSUHVHQFH
%%(
/RZ IRUEHWWHUVSHHFKLQWHOOLJLELOLW\DQGPXVLFDOUHDOLVP
+LJK 6HOHFWLWGHSHQGLQJRQ\RXUSUHIHUHQFH
2II ,WZLOODXWRPDWLFDOO\DGMXVWWKHYROXPHWRLWVDYHUDJHOHYHO
3HUIHFW9ROXPH
HDFKWLPH\RXFKDQJHWKHFKDQQHO
2Q
2II 7KLVQHHGVWREHVZLWFKHGWR2IIZKHQ\RXZDQWWRWDNH
DXGLRIURPH[WHUQDOHSXLSPHQW
,QWHUQDO6SHDNHU
,WLVQRUPDOO\VHWWR2QZKHQ\RXRSHUDWHWKHVHWXVLQJ
2Q WKHEXLOWLQVSHDNHUV
,WDOORZV\RXWRDGMXVWWKHYROXPHRIWKHKHDGSKRQH
+HDGSKRQH9ROXPH a 7KHVRXQGIURPWKHVSHDNHUZLOODXWRPDWLFDOO\VHWWR
087(ZKHQWKHKHDGSKRQHLVFRQQHFWHGWRWKHWHUPLQDO
5HVHWDOOWKHVHWYDOXHVRQWKLV0HQX3DJHWRWKHRULJLQDO
5HVHW
IDFWRU\VHWWLQJV
,QIRUPDWLRQ
7KHLWHPVLQGLFDWHGE\³ ´FDQEHVWRUHGIRUHDFKRI$XGLR0RGH
7LPHU0HQX
(1*/,6+
7KLVDOORZVWKHXQLWWRWXUQ2II6WDQGE\PRGHRU2QDWVHWWLPHDXWRPDWLFDOO\ZKLFK\RXPD\¿QGXVHIXO
6HOHFWHG,WHPV 6HWXSKLQW
0LQ
0LQ
7KLVIXQFWLRQDXWRPDWLFDOO\VHWVWKHSRZHUWR6WDQGE\
2II7LPHU 0LQ
PRGHZKHQWKHVHOHFWHGWLPHSHULRGKDVHODSVHG
0LQ
0LQ
7KLVIXQFWLRQDXWRPDWLFDOO\VHWVWKHSRZHUIURPVWDQGE\
PRGHWR2QZKHQWKHVSHFL¿HGWLPHSHULRGKDVHODSVHG
$IWHUWKH³2Q7LPHU´LVVHWWKHLQGLFDWLQJODPSZLOOVWDUW
2Q7LPHU EOLQNLQJ
,QSXWWKHGHVLUHGWLPHZLWKLQWKHUDQJHRIWR
E\XVLQJ EXWWRQRQWKHUHPRWHFRQWURO
$ERXW7HOHWH[W
:KDWLV´7HOHWH[Wµ
7HOHWH[WLVWKHZULWWHQLQIRUPDWLRQVHUYLFHVSURYLGHGE\HDFK79FKDQQHO
0RVW79FKDQQHOVSURYLGHLQIRUPDWLRQYLD7HOHWH[WVXFKDV
79SURJUDPVFKHGXOH
:HDWKHUIRUHFDVWV
6SRUWVUHVXOWV
1HZVÀDVK
2SHUDWLRQ 3UHVV
7RDFWLYDWH7HOHWH[WPRGH
7RH[LWIURPWKH7HOHWH[WPRGH >79Ù7H[W@
7RPRYHWRWKHQH[WRUSUHYLRXVSDJH
>3DJH6HOHFW@
a
7RMXPSWRWKHLQGLFDWHGSDJH
>3DJH6HOHFW@
7RVSOLWWKHVFUHHQLQWRWZRDQGZDWFKERWK7HOHWH[WLQIRUPDWLRQ
DQGDFWXDOEURDGFDVWDWWKHVDPHWLPH
3UHVVDJDLQWRZDWFK7HOHWH[WRQDVLQJOHVFUHHQ >7H[WÙ797H[W@
7RGLVSOD\,QGH[SDJH
>,QGH[@
7RDFFHVV6XEWLWOHVHUYLFHGLUHFWO\LIWKHFKDQQHOKDVWKH6XEWLWOH
VHUYLFHEURDGFDVWLQJ >6XEWLWOH@
7RGLVSOD\+LGGHQWH[W
H[7KHDQVZHUVRIWKH4XL]RUWKH*DPHSDJH
3UHVVDJDLQWRFORVHWKHUHYHDOHGDQVZHU >5HYHDO@
7RUHWXUQWRDFWXDOEURDGFDVWWHPSRUDULO\ZKLOHVHDUFKLQJIRUWKH
7HOHWH[WSDJH\RXUHTXHVW
:KHQWKHVHDUFKLVGRQHWKHGHVLJQDWHGSDJHZLOOEHGLVSOD\HG
RQWKHXSSHUOHIWRIWKHVFUHHQ >&DQFHO@
3UHVVDJDLQWRUHWXUQWR7HOHWH[WSDJH
7RDFFHVVWKHOLQNSDJHVZKLFKDUHGLVSOD\HGDWWKHERWWRPRIWKHSDJH
6HOHFWWKHEXWWRQVFRUUHVSRQGLQJWRWKHFRORUVRIWKHOHWWHUVRQVFUHHQ >&RORU@
7RKROGWKHWH[WSLFWXUH
>+ROG@
,QIRUPDWLRQ
(DFKWLPHWKH EXWWRQLVSUHVVHGWKHVFUHHQZLOOEHVZLWFKHGIURPGRXEOHVFUHHQWRVLJQDOVFUHHQ
6RPH7HOHWH[WSDJHVGRQRWGLVSOD\/LQN3DJHVDWWKHERWWRPRIWKHVFUHHQ3UHVV EXWWRQWRGLVSOD\WKHP
6L]H6ZLWFKLQJ
(1*/,6+
(DFKWLPH EXWWRQRIWKHUHPRWHFRQWUROLVSUHVVHGWKHVFUHHQGLVSOD\VL]HLV
VZLWFKHGLQVHTXHQFHDQGWKHVWDWXVZLOOEHGLVSOD\HGDWWKHERWWRPRIWKHVFUHHQ
79$9VLJQDOLQSXW =220EXWWRQ
:DWFKLQJ6WDQGDUG'HÀQLWLRQ3LFWXUHVLSLS
79$9$9$9$9+'0,+'0,
<RXFDQGLVSOD\WKHLPDJHDWRSWLPXPFRQGLWLRQE\VHOHFWLQJGLVSOD\VL]HGHSHQGLQJRQWKHFXUUHQWRXWSXWLPDJHDVVKRZQEHORZ
'LVSOD\
,QSXW6LJQDO 'LVSOD\6L]H 7RGLVSOD\VXLWDEOHVFUHHQDVIROORZV
6FUHHQ
:KHQ:DWFKLQJ6'3LFWXUHV
3OD\DLPDJHRQVFUHHQIDLWKIXOO\%ODQNLQJRFFXUVRQERWK
VLGHV
3OD\DLPDJHZKLFKHQODUJHVKRUL]RQWDODQGYHUWLFDOVL]HRI
3DQRUDPLF WKHPLGGOHLQHTXDOVFDOHVDQGGLVSOD\VERWKVLGHVDSSHDULQJ
6LJQDO PXFKZLGHU
7KHYHUWLFDOVL]HRI3DQRUDPLFLVUHGXFHGVRWKDW\RXFDQ
3DQRUDPLF VHHWKHZKROHLPDJHLQFOXGLQJDQ\VXEWLWOHVWKDWPLJKW
RWKHUZLVHQRWEHIXOO\YLVLEOHRQWKHVFUHHQ
3OD\DLPDJHLQIUDPH9LVWDVL]HIDLWKIXOO\
=RRP
,QVRPHFDVHVOLJKWEODQNLQJPD\UHPDLQDWWKHWRSDQG
9LVWD ERWWRP
3OD\DLPDJHLQIUDPH&LQHPDVL]HH[SDQGLQJ
YHUWLFDOO\
&LQHPD
,QVRPHFDVHVOLJKWEODQNLQJPD\UHPDLQDWWKHWRSDQG
&LQHPD ERWWRP
3OD\DLPDJHIDLWKIXOO\LQWKHVWDQGDUGYHUWLFDOVL]HDQG
)XOO
KRUL]RQWDOO\VTXHH]HG
6TXHH]H
:KHQ:DWFKLQJ+'3LFWXUHV
)XOO 3OD\DLPDJHIDLWKIXOO\VKRZLQJRIWKHVL]H
3OD\DLPDJHIDLWKIXOO\VKRZLQJRIWKHVL]H
6LJQDO )XOO
,QVRPHFDVHWKHVFUHHQGLVSOD\KDVXQQHFHVVDU\EODQNLQJ
RUQRLVHDWWKHHGJHV
3OD\DLPDJHLQIUDPHZKLFKHQODUJHVKRUL]RQWDODQG
3DQRUDPLF YHUWLFDOVL]HRIWKHPLGGOHLQHTXDOVFDOHVDQGGLVSOD\VERWK
,PDJHLQ VLGHVDSSHDULQJPXFKZLGHU
)UDPH
,QIRUPDWLRQ
$VSHFWUDWLRUHSUHVHQWVKRUL]RQWDOYHUWLFDOUDWLRRQVFUHHQ
)RUH[DPSOHYLVWDLPDJHLVLQLPDJH
6L]H6ZLWFKLQJFRQWLQXHG
79$9VLJQDOLQSXWFRQWLQXHG
3RVLWLRQ$GMXVWPHQW
9HUWLFDOSLFWXUHSRVLWLRQFDQEHDGMXVWHGIRU3DQRUDPLF=RRP&LQHPDDQG)XOOPRGHDVIROORZV
3UHVV EXWWRQZKLOHRSHUDWLQJWKHSLFWXUHVL]HGLVSOD\
³3RVLWLRQ´GLVSOD\ZLOODSSHDU
$GMXVWWKHSRVLWLRQE\ EXWWRQ
$GMXVWPHQWUDQJHRIHDFKSLFWXUHVL]HDUHDVVKRZQEHORZ
3RVLWLRQ 3RVLWLRQ
3UHVVŸ 3UHVVź
&$87,21
8VLQJDZLGHVFUHHQWHOHYLVLRQ
7KLVWHOHYLVLRQKDVDVFUHHQPRGHVHOHFWLRQIHDWXUH,IDQLQFRPSDWLEOHVFUHHQPRGHLVVHOHFWHGWRSOD\FHUWDLQ
VRIWZDUHVXFKDVD79SURJUDPWKHLPDJHZRXOGDSSHDUGLIIHUHQWIRUPWKHRULJLQDO7DNHWKLVLQWRFRQVLGHUDWLRQ
ZKHQPDNLQJVFUHHQPRGHFKRLFHV
8VHRIWKHZLGHIHDWXUHGLVSOD\LQJHQODUJHGSLFWXUHVLQFRIIHHVKRSVKRWHODQGRWKHUHVWDEOLVKPHQWVIRU
FRPPHUFLDORUSXEOLFYLHZLQJSXUSRVHVFRXOGLQIULQJHRQWKHFRS\ULJKWKROGHU¶VULJKWSURWHFWHGE\&RS\ULJKW/DZ
:KHQDQRUPDOLPDJHQRWZLGHVFUHHQLVGLVSOD\HGRYHUWKHHQWLUHVFUHHQLQWKH3DQRUDPLFPRGHWKH
SHULSKHUDOLPDJHPD\GLVDSSHDUSDUWO\DQGRUDSSHDUGLVWRUWHGLQVRPHFDVHV8VHPRGHWRYLHZWKHLPDJH
UHÀHFWLQJRULJLQDOLQWHQWLRQ
6L]H6ZLWFKLQJFRQWLQXHG
(1*/,6+
5*%VLJQDOLQSXW
<RXFDQVHOHFWVXLWDEOHVL]HGHSHQGLQJRQWKHUHVROXWLRQ
'LVSOD\$UHD6HOHFWLRQ'LDJUDP
5HVROXWLRQ ,QSXWVLJQDO )XOOGLVSOD\ &LUFXODUGLVSOD\
'LVSOD\ )XOO 1RUPDO =RRP
;9*$
;69*$
;;*$
;6;*$
;9*$
;:;*$
;:;*$ ņ¼ ņ¼
,QWKHVLJQDOGLVSOD\FKDUWVKRZQDERYHVRPHFRPSUHVVLRQRUVWUHWFKLQJKDVWDNHQSODFH)OLFNHUPD\EHQRWLFHDEOH
LQ=RRPPRGHGHSHQGLQJRQFRQWHQW
¼;:;*$LVDYDLODEOHRQO\LQ)XOOPRGH
3LFWXUH)UHH]LQJ
%\SUHVVLQJ EXWWRQ\RXFDQFKDQJHWRIUHH]HPRGHHDVLO\DQ\WLPH\RX
OLNH3UHVVLWDJDLQWRUHWXUQWRQRUPDOSLFWXUH
)5((=(EXWWRQ
7KHUHDUHWZRW\SHVRIIUHH]HPRGH<RXFDQVHOHFWWKHVHLQWKH³)UHH]H
0RGH´IURP)XQFWLRQ0HQX
6LQJOH
,WIUHH]HVDSLFWXUHRQDVLQJOHIUDPH
6SOLW
,WGLVSOD\VSLFWXUHVIURPWKHVDPHVRXUFH2QHLVDFWLYHOHIWZKLOHWKHRWKHU
LVVWLOOSLFWXUHULJKW7KLVLVYHU\XVHIXOLQRUGHUWRDYRLGPLVVLQJVRPHWKLQJRU
WRPDNHDQRWHRIVRPHWKLQJVXFKDVDUHFLSH
7KHVL]HRIWKHSLFWXUHVGLIIHUV
GHSHQGLQJRQWKHVLJQDOIRUPDW
UHFHLYHG
7KLVIXQFWLRQLVQRWDYDLODEOHLQ5*%LQSXW
$XGLR6ZLWFKLQJ
(1*/,6+
1,&$06RXQG0XOWLSOH[LQFOXGLQJ$79PRGH
<RXFDQPDNHRSWLPXPXVHRIDYDLODEOHDXGLRE\SUHVVLQJ EXWWRQRIUHPRWHFRQWURO$XGLRFDQEHVZLWFKHGRQO\LI
UHFHLYLQJ1,&$0DQGVRXQGPXOWLSOH[VLJQDOVRWKHUZLVHSUHVVLQJWKLVEXWWRQZLOOKDYHQRHIIHFWVXFKDVZKHQRQO\
PRQRVRXQGLVUHFHLYHG
7KHVHFDQEHGLYLGHGLQWRWZRPDLQFDWHJRULHV%LOLQJXDO'XDO6RXQGEURDGFDVWDQG6WHUHREURDGFDVW
%LOLQJXDO'XDO6RXQGEURDGFDVW
%LOLQJXDOEURDGFDVWLVWKHEURDGFDVWDYDLODEOHRQWKHPDLQDQGVXEODQJXDJHVZKLOHGXDOVRXQGEURDGFDVWLV
DYDLODEOHRQWKHSULPDU\DQGVHFRQGDU\VRXQGVIRUH[DPSOHVRPHVSRUWVSURJUDPVFRQWDLQEURDGFDVWFRPPHQWDU\
RQDJDPHDVSULPDU\VRXQGDQGDFRPPHQWDU\DERXWDWHDPDVWKHVHFRQGDU\
:KHQELOLQJXDOSURJUDPLVUHFHLYHGVRXQGPRGHGLVSOD\DSSHDUVLQ\HOORZDVVKRZQ$OVRZKHQUHFHLYLQJ1,&$0
VLJQDOV1,&$0GLVSOD\ZLOODSSHDU
(DFKWLPH EXWWRQLVSUHVVHGWKHGLVSOD\LVVZLWFKHGLQWKHVHTXHQFHRIIROORZLQJ
>,@«0DLQODQJXDJH3ULPDU\6RXQG
>,,@6XEODQJXDJH6HFRQGDU\6RXQG
ź«IRUFHPRQR7KLVVHOHFWVPDLQODQJXDJHRUSULPDU\VRXQG
6WHUHREURDGFDVW
:LWKVWHUHREURDGFDVW\RXFDQHQMR\GLIIHUHQWVRXQGIURPHLWKHUVLGH
:KHQDVWHUHRSURJUDPLVUHFHLYHGVRXQGPRGHGLVSOD\ZLOODSSHDULQUHGDVVKRZQ
$OVRZKHQUHFHLYLQJ1,&$0VLJQDOV1,&$0GLVSOD\ZLOODSSHDU
3UHVV EXWWRQWRVZLWFKEHWZHHQVWHUHRDQGPRQRVRXQG
3OHDVHVHOHFWźIRUFHPRQRLQFDVHRISRRUUHFHSWLRQQRLVHSRRUVWHUHRVRXQGGXHWRVLJQDOFRQGLWLRQVRWKDW
\RXFDQUHFHLYHDFOHDUPRQRVRXQG
VUHSUHVHQWVWKH0RQREURDGFDVW
3RZHU6DYH0RGH
:KHQ$9LQSXWLVVHOHFWHG
<RXDUHSURYLGHGWKHIXQFWLRQWRVDYHSRZHUFRQVXPSWLRQZKHQQRVLJQDOLVGHWHFWHGLQ$9LQSXW6HWWR2QLQ³9LGHR
3RZHU6DYH´IURP)XQFWLRQ0HQXZKLFKOHDGVWRWKHSRZHUVDYHPRGHLQ$9$9+'0,+'0,DQGWKH
6WDQGE\PRGHLQRWKHU$9LQSXW3OHDVHVHHWKHWDEOHEHORZIRUGHWDLOV5HIHUWR DERXW³9LGHR3RZHU6DYH´
:KHQQRVLJQDOLVGHWHFWHG :KHQVLJQDOLVLQSXWGXULQJ
&RQGLWLRQ ,QGLFDWLQJ/DPS 2QLQ´9LGHR3RZHU6DYHµ
$9$9
3RZHU6DYH 2UDQJH 7XUQV2QDXWRPDWLFDOO\
+'0,+'0,
$9$9 6WDQGE\ 5HG 5HPDLQVDV6WDQGE\PRGH
:KHQWKH5*%LQSXWLVVHOHFWHG
:KHQWKLVXQLWLVFRQQHFWHGWRD9(6$'306FRPSXWHUWKH3RZHU6DYHPRGH2SHUDWLRQPRGH2IIFDQEHVHW
WREHDFWLYDWHGDXWRPDWLFDOO\ZKHQWKHFRPSXWHULVQRWEHLQJXVHGWRUHGXFHSRZHUFRQVXPSWLRQE\WKLVXQLW
5HWXUQLQJWRRSHUDWLQJVWDWXV
2SHUDWHWKHSHUVRQDOFRPSXWHURUSUHVVHLWKHUWKH,13876(/(&7EXWWRQRIWKHFRQWUROSDQHORUWKH5*%EXWWRQ
RIWKHUHPRWHFRQWURO
'9'3OD\HU67%6HOHFWLRQ
(1*/,6+
<RXFDQXVHWKLVUHPRWHFRQWUROWRRSHUDWH'9'3OD\HUDQG6HW7RS%R[RIRWKHU
PDNHUVDVZHOODVWKLVVHW$IWHUSUHVVLQJ EXWWRQSUHVVRUKROGWKHUHTXLUHG
EXWWRQVWRVHOHFWWKHPDNHUDQGW\SHDVVKRZQEHORZ
6HWXS
([DPSOH+,7$&+,'9'3
6HWXSWKHPDNHU
3UHVV EXWWRQWRLQGLFDWHWKH'9'/('RQWKHUHPRWHFRQWURO:KLOHWKH'9'
/('LVEOLQNLQJ$SSUR[6HFRQGVSUHVV DQG.EXWWRQV
6HWXSWKHPDNHUW\SH
5HOHDVHWKH.EXWWRQZKLOHNHHSLQJ
EXWWRQGHSUHVVHG7KHQSUHVV3EXWWRQ
&RQ¿UPWKHVHWWLQJ
$IWHUVHWWLQJWKHPDNHUDQGW\SHSUHVVWKH68%32:(5EXWWRQRQWKHUHPRWH
FRQWURO,IWKH'9'GRHVQRWVZLWFK21UHSHDWVWHSDQGXVLQJRWKHUPDNHU
W\SHVDVOLVWHG
´'9'µ6HOHFWLRQ!
0DNHUVRI'9'3OD\HU 6HW0DNHU 6HWW\SH 0DNHUVRI'9'3OD\HU 6HW0DNHU 6HWW\SH
+,7$&+,
. .a$ 5&$
-
.
)81$,
3 . 0LWVXELVKL
.
3LRQHHU
$ .a4 21.<2
5('
.a$
3DQDVRQLF
/ .a/ =(1,7+
*5((1
.
726+,%$
1 .a/ 7+20621
<(//2:
.
3KLOLSV
4 .a3 6+,1&2
%/8(
.
-9&
2 . 6.<:257+
.
6$0681*
( . %8%8.2
.
6RQ\
, .a/ '(121
.a3
6KDUS
.a3 <$0$+$
.a3
´67%µ6HOHFWLRQ!
0DNHUVRI67%3OD\HU 6HW0DNHU 6HWW\SH
+,7$&+,
.
.a3
726+,%$
3
.
'*7(&
$
.
3DQDVRQLF
/
.
3OHDVHQRWHWKDWQRWDOOPRGHOVRIWKHOLVWHGPDNHUVFDQEHRSHUDWHGXVLQJWKLVUHPRWHFRQWURO
%HIRUHFDOOLQJVHUYLFHWHFKQLFLDQFKHFNWKHIROORZLQJWDEOHV¿UVW,IWKHSUREOHPLVQRWEHVROYHGZLWKWKHVXJJHVWHGSURFHGXUHVFRQWDFW\RXUORFDO
GHDOHU)RU\RXUVDIHW\1(9(5WU\WRUHSDLUWKHSURGXFWE\\RXUVHOI
:KHQ)ROORZLQJ0HVVDJHV$SSHDURQWKH6FUHHQ
7KLVLQGLFDWHVLWLVLQ3RZHU6DYHPRGHLQ$95*%PRGH
3RZHU6DYH
7KHLQGLFDWLQJODPSOLJKWVLQRUDQJH
7KHXQLWFDQQRWGHWHFWDQ\VLJQDOVIURPDQ\LQSXWWHUPLQDOV
&KHFNLIWKHFDEOHLVFRQQHFWHGFRUUHFWO\DQG¿UPO\
1R6\QF6LJQDO &KHFNLIWKHSRZHURIDQ\H[WHUQDOHTXLSPHQWLV21 a
&KHFNLIWKHLQSXWVHOHFWLRQPDWFKHVWKHFRQQHFWLRQWHUPLQDO
&KHFNLIWKH3&LVLQ3RZHU6DYHPRGHRUQRW
7KHXQLWUHFHLYHVXQVXSSRUWHGVLJQDOV
,QYDOLG6FDQ)UHT &KHFNLIWKHFDEOHLVFRQQHFWHGFRUUHFWO\DQG¿UPO\
&KHFNLIWKHLQSXWVLJQDOLVFRPSDWLEOHZLWKWKHVSHFL¿FDWLRQRIWKHWHOHYLVLRQ
1RW$YDLODEOH 7KLVVKRZVZKHQWKHVHOHFWHGRSHUDWLRQLVQRWDYDLODEOH
7KLVPHVVDJHDSSHDUVZKHQ\RXVHOHFWRWKHUWKDQ EXWWRQZKLOH6FUHHQ:LSHLV21
3OHDVH3XVK>5HWXUQ@EXWWRQ
3UHVV EXWWRQZKHQWKLVPHVVDJHDSSHDUV
&KHFN$QWHQQD &KHFNWKHFRQQHFWLRQVWDWXVZKHQWKLVPHVVDJHDSSHDUV
6\PSWRPDQG&KHFN/LVW
&KHFNWKH,QGLFDWLQJODPSVWDWXV2II5HG*UHHQRU2UDQJH
&KHFNWKHFRQQHFWLRQRIWKH3RZHU&RUGDQGRURWKHUFDEOHV
&KHFNLIWKH0DLQ3RZHURIWKHXQLWRUH[WHUQDOHTXLSPHQWVLV21 a
1RSLFWXUHQRVRXQG
&KHFNLIWKH79PRGHLVVHOHFWHG
&KHFNLIWKH79LVLQ³6WDQGE\PRGH´RU³3RZHU6DYHPRGH´
$GMXVWWKHYDOXHVLQ³3LFWXUHPHQX´DQG³$XGLRPHQX´
&KHFNWKHDQWHQQDFRQQHFWLRQDQGGLUHFWLRQ
6QRZ\SLFWXUHSRRUVRXQG 7KH79VWDWLRQPD\KDYHEURDGFDVWGLI¿FXOWLHV
7U\DQRWKHUFKDQQHO
&KHFNWKHDQWHQQDFRQQHFWLRQDQGGLUHFWLRQ
)LQHWXQLQJWKH79
0XOWLSOHLPDJHVQRUPDOVRXQG
&KHFNWKHFRQQHFWLRQRIWKHH[WHUQDOHTXLSPHQWV
7KH79VWDWLRQPD\KDYHEURDGFDVWGLI¿FXOWLHV7U\DQRWKHUFKDQQHO
&KHFNLIWKHVRXUFHRILQWHUIHUHQFHLVVKLHOGHGZHOO
,QWHUPLWWHQWLQWHUIHUHQFH
5HPRYHWKRVHNLQGVRIHOHFWULFDOGHYLFHVDZD\IURPWKH79
&KHFNWKHYROXPHOHYHO
&KHFNLIWKH EXWWRQKDVEHHQSUHVVHGRUQRW
1RUPDOSLFWXUHEXWQRVRXQG
0DNHVXUHWKDWWKHKHDGSKRQHLV127FRQQHFWHG
&KHFNWKHFRQQHFWLRQRIWKHH[WHUQDOHTXLSPHQWV
&KHFNWKHYDOXHOHYHORI³%ULJKWQHVV´DQG³&RQWUDVW´LQ
1RSLFWXUHQRUPDOVRXQG
³3LFWXUH0HQX´
&KHFNLIWKHEDWWHULHVDUHLQVWDOOHGFRUUHFWO\
7KHEDWWHULHVPLJKWEHH[KDXVWHG5HSODFHWKHPZLWKQHZRQHV
5HPRYHDOOWKHREVWUXFWLRQVLQIURQWRIWKHVHQVRUZLQGRZRQWKHXQLW
7KHUHPRWHFRQWUROGRHVQRWZRUN
&KHFNLI\RXVHOHFWWKHFRUUHFWIXQFWLRQE\ EXWWRQRQWKH
UHPRWHFRQWURO
&KHFNLIWKHEXWWRQVRIWKHFRQWUROSDQHOFDQZRUN
&KHFNWKHFRQQHFWLRQRIWKHH[WHUQDOHTXLSPHQWV a
1RUPDOSLFWXUHEXWQRFRORUQRUPDOVRXQG &KHFNWKH³6RXQG6\VWHP´DQG³&RORU6\VWHP´LQ³6HWXS
0HQX´ a
6\PSWRPDQG&KHFN/LVWFRQWLQXHG
(1*/,6+
6\PSWRPV &KHFNOLVW 3DJH
1RSLFWXUH &KHFNLIWKH3RZHU&RUGLVSOXJJHGLQWRWKHVRFNHW¿UPO\
7KH,QGLFDWLQJODPSĺ2II &KHFNLIWKH0DLQ3RZHULV21
&KHFNLIDOOWKHFDEOHVRIWKHH[WHUQDOHTXLSPHQWVDUHFRQQHFWHG
FRUUHFWO\DQG¿UPO\
1RSLFWXUH
&KHFNLIWKHSRZHURIWKHH[WHUQDOHTXLSPHQWVLV21
7KH,QGLFDWLQJODPSĺ2UDQJH
&KHFNLIWKH79$9PRGHKDVEHHQVHOHFWHGFRUUHFWO\
,WPHDQVWKDWWKHXQLWLVLQ³3RZHU6DYH
&KHFNLIWKH3&LVLQ3RZHU6DYHPRGHRUQRW
PRGH´
5HIHUWR³3RZHU6DYHPRGH´DQG³:KHQIROORZLQJPHVVDJHVDSSHDUVRQ
WKHVFUHHQ´
1RSLFWXUH &KHFNLIWKHVLJQDOFDEOHLVFRQQHFWHGFRUUHFWO\DQG¿UPO\
a
7KHLQGLFDWLQJODPSĺ*UHHQ $GMXVWWKHOHYHORI%ULJKWQHVVDQG&RQWUDVWORZHU
7KHUHDURIWKH79PDNHVDEX]]LQJ 7KLVFRXOGEHWKHVRXQGSURGXFHGE\WKHPRWRUIDQZKHQLWURWDWHV
VRXQG 7KLVLVQRWDPDOIXQFWLRQ
7KHWRSRIWKHXQLWDQGVXUIDFHRIWKH ,WPD\KDSSHQZKHQ\RXXVHWKHXQLWIRUORQJKRXUV7XUQRIIWKH0DLQ
SDQHOKHDWXS 3RZHURIWKHXQLWIRUDZKLOH3OHDVHQRWHWKDWWKLVLVQRWPDOIXQFWLRQ
,PDJHFDQQRWEHGLVSOD\HGLQWKHFRUUHFW UHVV
3 EXWWRQWRFKHFNLIWKHLQSXWVLJQDORIWKHGLVSOD\HGLPDJHLV
SRVLWLRQ FRPSDWLEOHZLWKWKHVSHFL¿FDWLRQRIWKHWHOHYLVLRQ
:KHQWKH9&5LVLQVSHFLDOSOD\EDFN
,WFRXOGKDSSHQZKHQWKH9&5LVFRQQHFWHGWR&RPSRQHQWRXWSXWVXFK
IHDWXUHV)DVW)RUZDUGRU5HZLQGWKH
DVL7KLVLVQRWPDOIXQFWLRQ
VFUHHQJHWVGDUNDQGFDQQRWVHHWKH 7U\&RPSRVLWHRXWSXWRU6YLGHRRXWSXWDQGFKHFNWKHSLFWXUHDJDLQ
LPDJHDWDOO
&KHFNWKHVLJQDOVWDWXVE\SUHVVLQJWKH EXWWRQRQWKHUHPRWH
6RPHVFUHHQGLVSOD\VL]HFDQQRWEH
VZLWFKHG FRQWURO7KHDYDLODEOHVFUHHQGLVSOD\VL]HLVGLIIHUHQWGHSHQGLQJRQWKH
a
FXUUHQWVLJQDOVWDWXV
&KHFNLIWKHFDEOHVDUHFRQQHFWHGFRUUHFWO\
&DQQRWEHGLVSOD\HGWKHLPDJHIURP &KHFNWKHRXWSXWIRUPDWRIWKHHTXLSPHQWV
a
+'0,RU 3OHDVHUHIHUWR³&RQQHFWLQJ3URFHGXUH´DQG³5HFRPPHQGHG6LJQDO
/LVW´
6\PSWRPDQG&KHFN/LVWFRQWLQXHG
7KHLPDJHRQWKHVFUHHQLVPRYLQJLQ
DQREOLTXHGLUHFWLRQ $GMXVW³+RUL]RQWDO&ORFN´DQG³&ORFN3KDVH´
3&LQSXWPRGHRQO\
7KHFRDUVHKRUL]RQWDOVWULSHVFRXOGEH
VHHQLQIXOOGLVSOD\PRGH $GMXVW³+RUL]RQWDO&ORFN´
3&LQSXWPRGHRQO\
7KHSDUWRIWKHLPDJHLVODFNLQJ &KHFNLIWKH³6FUHHQ6DYHU´LV2))
3&LQSXWPRGHRQO\ 7U\³$XWR$GMXVW´
7KHKRUL]RQWDOVWULSHVDUHPRYLQJ
&KHFNWKH6LJQDOVWDWXVRIWKH3&E\SUHVVLQJ EXWWRQ
YHUWLFDOO\ZLWKÀLFNHULQJVFUHHQ
3&LQSXWPRGHRQO\ RQWKHUHPRWHFRQWURO
:KHQWKHFKDUDFWHUVDUHGLVSOD\HG
RQWKHZKROHVFUHHQWKHYHUWLFDO
7U\³$XWR$GMXVW´
VWULSHVDSSHDUDQGVRPHRIWKH
,IWKHGLVSOD\FRQGLWLRQLVQRWLPSURYHGZLWK$XWR$GMXVW
FKDUDFWHUVDUHEOXUUHG
DGMXVW³+RUL]RQWDO&ORFN´
3&LQSXWPRGHRQO\
:KHQWKHOHWWHUVWULQJLVGLVSOD\HGLQ
7U\³$XWR$GMXVW´
IXOOVFUHHQDOORIWKHFKDUDFWHUVRQ
,IWKHFRQGLWLRQLVQRWLPSURYHGZLWK$XWR$GMXVWDGMXVW
WKHVFUHHQDUHEOXUUHG
³&ORFN3KDVH´WLOO\RXJHWFOHDUHVWLPDJH
3&LQSXWPRGHRQO\
:KHQWKHVPDOOSDWWHUQVDUH
7U\³$XWR$GMXVW´
GLVSOD\HGRQWKHVFUHHQWKHHQWLUH
,IWKHFRQGLWLRQLVQRWLPSURYHGZLWK$XWR$GMXVWDGMXVW
VFUHHQLVÀLFNHULQJ
³&ORFN3KDVH´WLOO\RXJHWÀLFNHUIUHHGLVSOD\
3&LQSXWPRGHRQO\
7KHWKLFNQHVVRIWKHOHWWHUVOLQHVHWF ,WFRXOGKDSSHQZKHQWKHLPDJHZLWKPRUHWKDQOLQHV
LVQRWGLVSOD\HGHYHQO\ RIYHUWLFDOUHVROXWLRQLVGLVSOD\HG
3&LQSXWPRGHRQO\ 3OHDVHQRWHWKLVLVQRWPDOIXQFWLRQ
(1*/,6+
63(&,),&$7,21
'LVSOD\GLPHQVLRQV $SSUR[LQFKHV+[9PPGLDJRQDOPP
3DQHO
5HVROXWLRQ +[9SL[HOV
LQFOXGLQJ2SWLRQDO6WDQG:[+['PP
1HWGLPHQVLRQV
H[FOXGLQJ2SWLRQDO6WDQG:[+['PP
LQFOXGLQJ2SWLRQDO6WDQGNJ
1HWZHLJKW
H[FOXGLQJ2SWLRQDO6WDQGNJ
$9FRPSRVLWHYLGHRLQSXWWHUPLQDO5&$
FRPSRQHQWYLGHRLQSXWWHUPLQDO5&$
/5DXGLRLQSXWWHUPLQDO5&$
$9FRPSRVLWHYLGHRLQSXWWHUPLQDO5&$
,QSXWWHUPLQDOV
6YLGHRLQSXWWHUPLQDO
/5DXGLRLQSXWWHUPLQDO5&$
+'0,+'0,LQSXWWHUPLQDO
$XGLRLQSXWWHUPLQDO/5DXGLRLQSXWWHUPLQDO5&$
&RPSRVLWHYLGHR3$/6(&$0176&176&3$/
&RPSRQHQWYLGHRLLSSSSLL
,QSXWVLJQDOV +'0,9*$LLSSSSLL
SS
5)LQSXW
,QSXWWHUPLQDO5HFHLYLQJUDQJH $178QEDODQFHGa0+]
3$/%*+,'.
5)9LGHR6\VWHP 6(&$0%*'..
176&0
5*%LQSXW
$QDORJ5*%LQSXWWHUPLQDO'VXESLQ
,QSXWWHUPLQDOV
$XGLRLQSXWWHUPLQDO/5DXGLRLQSXWWHUPLQDO5&$
6\QFVLJQDOV +9VHSDUDWH77/OHYHO>.@
7KHXQLWWDNHVDWOHDVWPLQXWHVWRDWWDLQWKHVWDWXVRIRSWLPDOSLFWXUHTXDOLW\
7KLVDQDORJDXGLRLQSXWWHUPLQDOFDQEHXVHGIRU3&5*%RU+'0,RQO\
6LJQDO,QSXW
5*%WHUPLQDO'VXESLQFRQQHFWRU
3LQ ,QSXWVLJQDO
5
*
%
1RFRQQHFWLRQ
1RFRQQHFWLRQ
5*1'
**1'
%*1'
1RFRQQHFWLRQ
*1'
1RFRQQHFWLRQ
>6'$@
+V\QF
9V\QF>9&/.@
>6&/@
6LQSXWFRQQHFWRUSLQVSHFLÀFDWLRQV
3LQ ,QSXWVLJQDO
<
<*1'
&
&*1'
)UDPH *1'
+'0,FRQQHFWRUSLQVSHFLÀFDWLRQV
3LQ ,QSXWVLJQDO 3LQ ,QSXWVLJQDO
70'6'DWD 70'6&ORFN6KLHOG
70'6'DWD6KLHOG 70'6&ORFN
70'6'DWD &(&
70'6'DWD 5HVHUYHG1&RQGHYLFH
70'6'DWD6KLHOG 6&/
70'6'DWD 6'$
70'6'DWD ''&&(&*URXQG
70'6'DWD6KLHOG 93RZHU
70'6'DWD +RW3OXJ'HWHFW
70'6&ORFN
5HFRPPHQGHG6LJQDO/LVW
(1*/,6+
:LWK+'0,LQSXW
6LJQDOPRGH +RUL]RQWDO 'RWFORFN
1R 6LJQDO 9HUWLFDO IUHTXHQF\ IUHTXHQF\ 5HPDUNV
5HVROXWLRQ
1DPH IUHTXHQF\+] N+] 0+]
9*$ ; (,$&($%
L ; (,$&($%
L ; (,$&($%
S ; (,$&($%
S ; (,$&($%
L ; (,$&($%
L ; (,$&($%
S ; (,$&($%
S ; (,$&($%
S ; (,$&($%
S ; (,$&($%
:LWK5*%LQSXW
6LJQDOPRGH +RUL]RQWDO 'RWFORFN
1R 6LJQDO 9HUWLFDO IUHTXHQF\ IUHTXHQF\ 5HPDUNV
5HVROXWLRQ N+] 0+]
1DPH IUHTXHQF\+]
;
9*$
;
;
9(6$ ;
;
; :;*$0RGH[
:;*$
; :;*$0RGH[
7KHW\SHRIYLGHRERDUGRUFRQQHFWLQJFDEOHXVHGPD\QRWDOORZIRUFRUUHFWGLVSOD\VDGMXVWPHQWRI+RUL]RQWDO3RVLWLRQ9HUWLFDO
3RVLWLRQ+RUL]RQWDO&ORFNDQG&ORFN3KDVH
7KHXQLWGLIIHUHQWLDWHVWKHVLJQDOPRGHVDFFRUGLQJWRWKHKRUL]RQWDODQGYHUWLFDOIUHTXHQFLHVDQGWKHKRUL]RQWDODQGYHUWLFDOV\QF
VLJQDOSRODULWLHV1RWHWKDWGLIIHUHQWVLJQDOVKDYLQJDOOWKHVHHOHPHQWVDOLNHPD\EHKDQGOHGDVWKHVDPHVLJQDO
'LVSOD\LQJLPDJHVZLWKPRUHWKDQOLQHVRIYHUWLFDOUHVROXWLRQDW)XOOGLVSOD\FRPSUHVVHGGLVSOD\FDQUHVXOWLQWKH
LQWHUSRODWLRQRIVWULSHV