You are on page 1of 102

BRITISH STANDARD |

| BS EN
|
|
|
1594:2000
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas supply systems Ð |
|
|
|
|
|
Pipelines for maximum |
|
|
|
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

|
|
operating pressure over |
|
|
|
|
|
16 bar Ð Functional |
|
|
|
|
|
requirements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The European Standard EN 1594:2000 has the status of a |
British Standard |
|
|
|
|
|
|
|
|
ICS 75.200; |
|
|
|
|
|
|
|
|
NO COPYING WITHOUT BSI PERMISSION EXCEPT AS PERMITTED BY COPYRIGHT LAW
|
|
|
|
BS EN 1594:2000

National foreword
This British Standard is the official English language version of EN 1594:2000.
EN 1594 recognises the need for more detailed national standards and codes of
practice in the CEN member countries. For the UK additional guidance of this
nature can be found in BS 8010-1 and BS 8010-2-2.8. In due course BS 8010-2-2.8 will
be revised and reissued.
The UK participation in its preparation was entrusted by Technical Committee
GSE/33, Gas Supply, to Subcommittee GSE/33/3, Gas Supply: Transmission, which
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

has the responsibility to:

Ð aid enquirers to understand the text;


Ð present to the responsible European committee any enquiries on the
interpretation, or proposals for change, and keep the UK interests informed;
Ð monitor related international and European developments and promulgate
them in the UK.

A list of organizations represented on this subcommittee can be obtained on request


to its secretary.
Cross-references
The British Standards which implement international or European publications
referred to in this document may be found in the BSI Standards Catalogue under the
section entitled ªInternational Standards Correspondence Indexº, or by using the
ªFindº facility of the BSI Standards Electronic Catalogue.
A British Standard does not purport to include all the necessary provisions of a
contract. Users of British Standards are responsible for their correct application.
Compliance with a British Standard does not of itself confer immunity
from legal obligations.

Summary of pages
This document comprises a front cover, an inside front cover, the EN title page,
pages 2 to 98, an inside back cover and a back cover.
The BSI copyright notice displayed in this document indicates when the document
was last issued.

This British Standard, having Amendments issued since publication


been prepared under the
direction of the Engineering Amd. No. Date Comments
Sector Committee, was published
under the authority of the
Standards Committee and comes
into effect on 15 June 2000

 BSI 06-2000

ISBN 0 580 35871 2


(8523($167$1'$5' (1
1250((8523e(11(
(8523b,6&+(1250 0DUFK

,&6

(QJOLVKYHUVLRQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

*DVVXSSO\V\VWHPV3LSHOLQHVIRUPD[LPXPRSHUDWLQJSUHVVXUH
RYHUEDU)XQFWLRQDOUHTXLUHPHQWV

6\VWqPHG
DOLPHQWDWLRQHQJD]&DQDOLVDWLRQVSRXU *DVYHUVRUJXQJVV\VWHPH5RKUOHLWXQJHQPLWHLQHQ
SUHVVLRQPD[LPDOHGHVHUYLFHVXSpULHXUHjEDU PD[LPDO]XOlVVLJHQ%HWULHEVGUXFNEHUEDU
3UHVFULSWLRQVIRQFWLRQHOOHV )XQNWLRQDOH$QIRUGHUXQJHQ

7KLV(XURSHDQ6WDQGDUGZDVDSSURYHGE\&(1RQ2FWREHU

&(1PHPEHUVDUHERXQGWRFRPSO\ZLWKWKH&(1&(1(/(&,QWHUQDO5HJXODWLRQVZKLFKVWLSXODWHWKHFRQGLWLRQVIRUJLYLQJWKLV(XURSHDQ
6WDQGDUGWKHVWDWXVRIDQDWLRQDOVWDQGDUGZLWKRXWDQ\DOWHUDWLRQ8SWRGDWHOLVWVDQGELEOLRJUDSKLFDOUHIHUHQFHVFRQFHUQLQJVXFKQDWLRQDO
VWDQGDUGVPD\EHREWDLQHGRQDSSOLFDWLRQWRWKH&HQWUDO6HFUHWDULDWRUWRDQ\&(1PHPEHU

7KLV(XURSHDQ6WDQGDUGH[LVWVLQWKUHHRIILFLDOYHUVLRQV (QJOLVK)UHQFK*HUPDQ $YHUVLRQLQDQ\RWKHUODQJXDJHPDGHE\WUDQVODWLRQ


XQGHUWKHUHVSRQVLELOLW\RID&(1PHPEHULQWRLWVRZQODQJXDJHDQGQRWLILHGWRWKH&HQWUDO6HFUHWDULDWKDVWKHVDPHVWDWXVDVWKHRIILFLDO
YHUVLRQV

&(1PHPEHUVDUHWKHQDWLRQDOVWDQGDUGVERGLHVRI$XVWULD%HOJLXP&]HFK5HSXEOLF'HQPDUN)LQODQG)UDQFH*HUPDQ\*UHHFH
,FHODQG,UHODQG,WDO\/X[HPERXUJ1HWKHUODQGV1RUZD\3RUWXJDO6SDLQ6ZHGHQ6ZLW]HUODQGDQG8QLWHG.LQJGRP

(8523($1 &200,77(( )25 67$1'$5',=$7,21


&20,7e (8523e(1 '( 1250$/,6$7,21
(8523b,6&+(6 .20,7(( )h5 125081*

&HQWUDO6HFUHWDULDWUXHGH6WDVVDUW%%UXVVHOV

‹&(1 $OOULJKWVRIH[SORLWDWLRQLQDQ\IRUPDQGE\DQ\PHDQVUHVHUYHG 5HI1R(1(


ZRUOGZLGHIRU&(1QDWLRQDO0HPEHUV
3DJH
(1

&RQWHQWV
3DJH

)RUHZRUG  

,QWURGXFWLRQ  

 6FRSH 
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

 1RUPDWLYHUHIHUHQFHV 

 'HILQLWLRQVV\PEROVDQGDEEUHYLDWLRQV  

 4XDOLW\V\VWHP 

 6DIHW\DQGWKHHQYLURQPHQW  

 ,QWURGXFWLRQ 
 $SSURSULDWHVDIHW\PHDVXUHV  
 5RXWLQJFRQVLGHUDWLRQV 
 /LQHYDOYHVSDFLQJ 

 3UHVVXUHVDIHW\ 

 3UHVVXUHOHYHOV 
 1RUPDORSHUDWLRQ 
 5HTXLUHPHQWVIRULQVWDOODWLRQRISUHVVXUHVDIHW\GHYLFHV  
 3LSHOLQHZLWK'3HTXDOWRRUOHVVWKDQEDUDQGKRRSVWUHVVHTXDOWRRUOHVVWKDQ5W  
 3LSHOLQHZLWK'3HTXDOWRRUOHVVWKDQEDUDQGKRRSVWUHVVHTXDOWRRUOHVVWKDQ5W  

 'HVLJQ  

 *HQHUDO 
 :DOOWKLFNQHVVGHWHUPLQDWLRQ 
 $GGLWLRQDOGHVLJQUHTXLUHPHQWV  
 $QDO\VLVRIVWUHVVDQGVWUDLQ 
 'HVLJQUHSRUW 
 /DQGPDQDJHPHQWDQGJHRWHFKQLFDOVWXGLHV 
 'HSWKRIFRYHU  
 &DVLQJSLSHV 
 6WDWLRQGHVLJQ 
 3LSHOLQHFRPSRQHQWV  
 3LJJLQJVXLWDELOLW\ 
 $UUDQJHPHQWVIRUYHQWLQJ  
 &RUURVLRQSURWHFWLRQ  

 0DWHULDOV 

 *HQHUDOUHTXLUHPHQWV 
 3LSHV  
 )LWWLQJV 
 )ODQJHGFRQQHFWLRQV  
 ,QVXODWLQJFRQQHFWLRQV 
 9DOYHV 
 ([WHUQDODQGLQWHUQDOFRDWLQJV  

‹%6,
3DJH
(1

 &RQVWUXFWLRQ  

 *HQHUDO 
 ([HFXWLRQRIZRUN  
 6SHFLDOFURVVLQJV  
 &OHDQLQJ  
 7HVWLQJ 
 $FFHSWDQFH 
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

 2SHUDWLRQDQGPDLQWHQDQFH  

 *HQHUDO 
 2UJDQLVDWLRQ  
 2SHUDWLQJDQGPDLQWHQDQFHLQVWUXFWLRQV 
 (PHUJHQF\SODQ  
 5HFRUGVDQGGRFXPHQWDWLRQ  
 &RPPLVVLRQLQJ 
 'HFRPPLVVLRQLQJ  
 5HFRPPLVVLRQLQJ  
 0DLQWHQDQFHPRGLILFDWLRQDQGUHSDLU  
 $EDQGRQPHQW  

$QQH[$ LQIRUPDWLYH %LEOLRJUDSK\  

$QQH[% LQIRUPDWLYH 6HWWOHPHQWDUHDV  

$QQH[& LQIRUPDWLYH 0LQLQJVXEVLGHQFH 

$QQH[' LQIRUPDWLYH )URVWKHDYH  

$QQH[( LQIRUPDWLYH /DQGVOLGHDUHDV  

$QQH[) LQIRUPDWLYH $UHDVZLWKKLJKVHLVPLFULVN  

$QQH[* LQIRUPDWLYH ([WHQGHGHODVWLFDQGOLPLWVWDWHGHVLJQ 

$QQH[+ LQIRUPDWLYH 6RLOPHFKDQLFVSDUDPHWHUV  

$QQH[, LQIRUPDWLYH %RUHGMDFNHGFURVVLQJV  

$QQH[- LQIRUPDWLYH $OORZDEOHSXOVDWLRQDQGYLEUDWLRQOHYHOV  

$QQH[. LQIRUPDWLYH $OORZDEOHYLEUDWLRQOHYHOVIURPFRQVWUXFWLRQZRUNEODVWLQJ 

$QQH[/ LQIRUPDWLYH :DOOWKLFNQHVVFDOFXODWLRQIRUWHHVDQGRWKHURSHQLQJV  

$QQH[0 LQIRUPDWLYH :DOOWKLFNQHVVFDOFXODWLRQIRUFDSV GRPHGHQGV  

‹%6,
3DJH
(1

)RUHZRUG

7KLV(XURSHDQ6WDQGDUGKDVEHHQSUHSDUHGE\7HFKQLFDO&RPPLWWHH&(17&*DVVXSSO\WKH6HFUHWDULDWRI
ZKLFKLVKHOGE\',1

7KLV(XURSHDQ6WDQGDUGVKDOOEHJLYHQWKHVWDWXVRIDQDWLRQDOVWDQGDUGHLWKHUE\SXEOLFDWLRQRIDQLGHQWLFDOWH[WRU
E\HQGRUVHPHQWDWWKHODWHVWE\6HSWHPEHUDQGFRQIOLFWLQJQDWLRQDOVWDQGDUGVVKDOOEHZLWKGUDZQDWWKH
ODWHVWE\6HSWHPEHU

7KHUHLVDFRPSOHWHVXLWHRIIXQFWLRQDOVWDQGDUGVSUHSDUHGE\&(17&*DVVXSSO\WRFRYHUDOOSDUWVRIWKH
JDVVXSSO\V\VWHPIURPWKHLQSXWRIJDVWRWKHWUDQVPLVVLRQV\VWHPXSWRWKHLQOHWFRQQHFWLRQRIWKHJDV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

DSSOLDQFHVZKHWKHUIRUGRPHVWLFFRPPHUFLDORULQGXVWULDOSXUSRVHV

$OLVWRIWKHUHOHYDQWIXQFWLRQDOVWDQGDUGVSUHSDUHGE\&(17&LVLQFOXGHGLQFODXVHDQG$QQH[$WRWKLV
GRFXPHQW

&(17&ZLOOFRQWLQXHLWVZRUNXSGDWLQJWKLVVWDQGDUGWRWKHODWHVWGHYHORSPHQWVDWUHJXODULQWHUYDOV

,QSUHSDULQJWKLVVWDQGDUGDEDVLFXQGHUVWDQGLQJRIJDVVXSSO\E\WKHXVHUKDVEHHQDVVXPHG

*DVVXSSO\V\VWHPVDUHFRPSOH[DQGWKHLPSRUWDQFHRQVDIHW\RIWKHLUFRQVWUXFWLRQDQGXVHKDVOHGWRWKH
GHYHORSPHQWRIYHU\GHWDLOHGFRGHVRISUDFWLFHDQGRSHUDWLQJPDQXDOVLQWKHPHPEHUFRXQWULHV7KHVHGHWDLOHG
VWDWHPHQWVHPEUDFHUHFRJQL]HGVWDQGDUGVRIJDVHQJLQHHULQJDQGWKHVSHFLILFUHTXLUHPHQWVLPSRVHGE\WKHOHJDO
VWUXFWXUHVRIWKHPHPEHUFRXQWULHV

7KLV(XURSHDQ6WDQGDUGKDVEHHQSUHSDUHGXQGHUPDQGDWH0JLYHQWR&(1E\WKH&RPPLVVLRQRIWKH
(XURSHDQ&RPPXQLWLHVDQGWKH(XURSHDQ)UHH7UDGH$VVRFLDWLRQ

$FFRUGLQJWRWKH&(1&(1(/(&,QWHUQDO5HJXODWLRQVWKHQDWLRQDOVWDQGDUGVRUJDQL]DWLRQVRIWKHIROORZLQJ
FRXQWULHVDUHERXQGWRLPSOHPHQWWKLV(XURSHDQ6WDQGDUG$XVWULD%HOJLXP&]HFK5HSXEOLF'HQPDUN)LQODQG
)UDQFH*HUPDQ\*UHHFH,FHODQG,UHODQG,WDO\/X[HPERXUJ1HWKHUODQGV1RUZD\3RUWXJDO6SDLQ6ZHGHQ
6ZLW]HUODQGDQGWKH8QLWHG.LQJGRP

‹%6,
3DJH
(1

,QWURGXFWLRQ

7KLV(XURSHDQ6WDQGDUGGHVFULEHVWKHJHQHUDOIXQFWLRQDOUHTXLUHPHQWVIRUJDVVXSSO\WKURXJKSLSHV\VWHPVDQG
FRYHUVWKHSUHVVXUHUDQJHJUHDWHUWKDQEDUPD[LPXPRSHUDWLQJSUHVVXUH 023 IRUVWHHOV\VWHPV,WJLYHV
QRUPDWLYHDQGLQIRUPDWLYHUHIHUHQFHVIRUVDIHDQGVHFXUHJDVVXSSO\V\VWHPV,WDSSOLHVWRWKHLUGHVLJQ
FRQVWUXFWLRQRSHUDWLRQDQGWKHUHODWHGDVSHFWVRIVDIHW\HQYLURQPHQWDQGSXEOLFKHDOWKDOOLQRUGHUWRSURYLGHD
VDIHDQGVHFXUHVXSSO\RIJDV

7KHUHTXLUHPHQWVRIWKLVVWDQGDUGDUHEDVHGRQVDIHJDVHQJLQHHULQJSUDFWLFHXQGHUFRQGLWLRQVQRUPDOO\
HQFRXQWHUHGLQWKHJDVLQGXVWU\5HTXLUHPHQWVIRUDOOXQXVXDOFRQGLWLRQVFDQQRWEHVSHFLILFDOO\SURYLGHGIRUQRU
DUHDOOHQJLQHHULQJDQGFRQVWUXFWLRQGHWDLOVSUHVFULEHG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

([LVWLQJLQGXVWULDOVDIHW\UHJXODWLRQVDSSO\LQJWRZRUNDUHDVVDIHW\GHYLFHVDQGVDIHZRUNSUDFWLFHVDUHQRW
LQWHQGHGWREHVXSSODQWHGE\WKLVVWDQGDUG

0DQDJHUVZLWKUHVSRQVLELOLWLHVIRUWKHGHVLJQFRQVWUXFWLRQDQGRSHUDWLRQRIJDVVXSSO\V\VWHPVVKRXOGKDYH
UHJDUGWRWKHJXLGDQFHJLYHQLQWKLVGRFXPHQWDQGWRRWKHUUHOHYDQWVWDQGDUGV,WLVWKHUHVSRQVLELOLW\RIWKHVH
PDQDJHUVDQGHQJLQHHUVWRDSSO\WKHVHIXQFWLRQDOUHTXLUHPHQWVVXSSOHPHQWHGZLWKRWKHUSURYHQJRRGSUDFWLFHWR
WKHSDUWLFXODUFLUFXPVWDQFHVRIHDFKJDVVXSSO\V\VWHP

7KHGHVLJQHUFRQVWUXFWRURURSHUDWRURISLSHOLQHV\VWHPVLVFDXWLRQHGWKDWWKLVVWDQGDUGLVQRWDGHVLJQKDQGERRN
RUFRGHRISUDFWLFH$GGLWLRQDOQDWLRQDORUFRPSDQ\VWDQGDUGVGHVFULELQJWKHGHWDLOVDUHQHHGHG7KHVHGHWDLOHG
VWDQGDUGVVKRXOGEHLQOLQHZLWKWKHEDVLFSULQFLSOHVRIWKLVVWDQGDUG

,QSUHSDULQJWKHVWDQGDUGLWZDVUHFRJQL]HGWKDWWKHVXLWHRIUHOHYDQW(XURSHDQVWDQGDUGVLVLQFRPSOHWH5HIHUHQFH
PD\EHPDGHZKHUHDSSURSULDWHWRLQWHUQDWLRQDOQDWLRQDORURWKHUVWDQGDUGVXQWLOUHOHYDQW(XURSHDQ6WDQGDUGV
DUHDYDLODEOH

‹%6,
3DJH
(1

 6FRSH

7KLV(XURSHDQ6WDQGDUGLVDSSOLFDEOHWRSLSHOLQHVZLWKDPD[LPXPRSHUDWLQJSUHVVXUH 023 RYHUEDUIRUWKH


FDUULDJHRISURFHVVHGQRQWR[LFDQGQRQFRUURVLYHQDWXUDOJDVDFFRUGLQJWR,62LQRQODQGJDVVXSSO\
V\VWHPVZKHUH

± WKHSLSHOLQHHOHPHQWVDUHPDGHRIXQDOOR\HGRUORZDOOR\HGFDUERQVWHHO
± WKHSLSHOLQHHOHPHQWVDUHMRLQHGE\ZHOGVIODQJHVRUPHFKDQLFDOFRXSOLQJV
± WKHSLSHOLQHLVQRWORFDWHGZLWKLQFRPPHUFLDORULQGXVWULDOSUHPLVHVDVDQLQWHJUDOSDUWRIWKHLQGXVWULDO
SURFHVVRQWKHVHSUHPLVHVH[FHSWIRUDQ\SLSHOLQHVDQGIDFLOLWLHVVXSSO\LQJVXFKSUHPLVHV
± WKHGHVLJQWHPSHUDWXUHRIWKHV\VWHPLVEHWZHHQƒ&DQGƒ&LQFOXVLYH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KLV(XURSHDQ6WDQGDUGGRHVQRWDSSO\WRH[LVWLQJSLSHOLQHVLQXVHSULRUWRWKHSXEOLFDWLRQRIWKLVVWDQGDUGQRUWR
PRGLILFDWLRQVWRH[LVWLQJSLSHOLQHV

*DVVXSSO\V\VWHPVFRYHUHGE\WKLVVWDQGDUGEHJLQDIWHUWKHJDVSURGXFHU
VPHWHULQJVWDWLRQ7KHIXQFWLRQDO
GHPDUFDWLRQRIWKHSLSHOLQHV\VWHPZLWKLQDSODQWDUHDZLOOEHGHWHUPLQHGIURPFDVHWRFDVH*HQHUDOO\VSHDNLQJ
WKLVZLOOEHGLUHFWO\DIWHUWKHILUVWLVRODWLQJYDOYHRIWKHLQVWDOODWLRQ

7KLVVWDQGDUGDOVRGHVFULEHVWKHPHFKDQLFDOUHTXLUHPHQWVIRUSLSHZRUNLQVWDWLRQVZLWKDPD[LPXPRSHUDWLQJ
SUHVVXUHJUHDWHUWKDQEDU:HOGLQJUHTXLUHPHQWVDUHGHVFULEHGLQDVSHFLDODSSOLFDWLRQVWDQGDUGRQZHOGLQJIRU
JDVVXSSO\V\VWHPV(1)XQFWLRQDOUHTXLUHPHQWVIRUVWDWLRQVDUHJLYHQLQ

(1 *DVVXSSO\V\VWHPV1DWXUDOJDVPHDVXULQJVWDWLRQV)XQFWLRQDOUHTXLUHPHQWV
(1 *DVVXSSO\V\VWHPV8QGHUJURXQGJDVVWRUDJH3DUW)XQFWLRQDOUHFRPPHQGDWLRQVIRUVXUIDFH
IDFLOLWLHV
(1 *DVVXSSO\V\VWHPV*DVSUHVVXUHUHJXODWLQJVWDWLRQVIRUWUDQVPLVVLRQDQGGLVWULEXWLRQ
)XQFWLRQDOUHTXLUHPHQWV
(1 *DVVXSSO\V\VWHPV&RPSUHVVRUVWDWLRQV)XQFWLRQDOUHTXLUHPHQWV

7KLV(XURSHDQ6WDQGDUGVSHFLILHVFRPPRQEDVLFSULQFLSOHVIRUJDVVXSSO\V\VWHPV8VHUVRIWKLV(XURSHDQ
6WDQGDUGVKRXOGEHDZDUHWKDWWKHUHPD\H[LVWPRUHGHWDLOHGQDWLRQDOVWDQGDUGVDQGFRGHVRISUDFWLFHLQWKH&(1
PHPEHUFRXQWULHV

7KLV(XURSHDQ6WDQGDUGLVLQWHQGHGWREHDSSOLHGLQDVVRFLDWLRQZLWKWKHVHQDWLRQDOVWDQGDUGVDQGRUFRGHVRI
SUDFWLFHVHWWLQJRXWWKHDERYHPHQWLRQHGSULQFLSOHV

,QWKHHYHQWRIFRQIOLFWVLQWHUPVRIPRUHUHVWULFWLYHUHTXLUHPHQWVLQWKHQDWLRQDOOHJLVODWLRQUHJXODWLRQZLWKWKH
UHTXLUHPHQWVRIWKLVVWDQGDUGWKHQDWLRQDOOHJLVODWLRQUHJXODWLRQVKDOOWDNHSUHFHGHQFH

5HIHUHQFHLVPDGHLQWKLVVWDQGDUGWRUHOHYDQW(XURSHDQDQGRWKHUUHFRJQL]HGVWDQGDUGVIRUSURGXFWVXVHGWR
FRQVWUXFWDQGRSHUDWHJDVVXSSO\V\VWHPV

$VFKHPDWLFUHSUHVHQWDWLRQRISLSHOLQHVIRUJDVWUDQVPLVVLRQLVJLYHQLQ)LJXUH

‹%6,
3DJH
(1
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)LJXUH6FKHPDWLFUHSUHVHQWDWLRQRISLSHOLQHVIRUJDVVXSSO\RYHUEDU

‹%6,
3DJH
(1

 1RUPDWLYHUHIHUHQFHV

7KLV(XURSHDQ6WDQGDUGLQFRUSRUDWHVE\GDWHGRUXQGDWHGUHIHUHQFHSURYLVLRQVIURPRWKHUSXEOLFDWLRQV7KHVH
QRUPDWLYHUHIHUHQFHVDUHFLWHGDWWKHDSSURSULDWHSODFHVLQWKHWH[WDQGWKHSXEOLFDWLRQVDUHOLVWHGKHUHDIWHU)RU
GDWHGUHIHUHQFHVVXEVHTXHQWDPHQGPHQWVWRRUUHYLVLRQVRIDQ\RIWKHVHSXEOLFDWLRQVDSSO\WRWKLV(XURSHDQ
6WDQGDUGRQO\ZKHQLQFRUSRUDWHGLQLWE\DPHQGPHQWRUUHYLVLRQ)RUXQGDWHGUHIHUHQFHVWKHODWHVWHGLWLRQRIWKH
SXEOLFDWLRQUHIHUUHGWRDSSOLHV

(1 0HWDOOLFPDWHULDOV7HQVLOHWHVWLQJ3DUW0HWKRGRIWHVW
(1 0HWDOOLFSURGXFWV7\SHVRILQVSHFWLRQGRFXPHQWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

(1 6WHHOSLSHVIRUSLSHOLQHVIRUFRPEXVWLEOHIOXLGV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW3LSHVRI
UHTXLUHPHQWFODVV%
SU(1 6HDPOHVVVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW1RQDOOR\
VWHHOWXEHVZLWKVSHFLILHGURRPWHPSHUDWXUHSURSHUWLHV
SU(1 6HDPOHVVVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW1RQDOOR\
DQGDOOR\VWHHOWXEHVZLWKVSHFLILHGHOHYDWHGWHPSHUDWXUHSURSHUWLHV
SU(1 6HDPOHVVVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW1RQDOOR\
DQGDOOR\ILQHJUDLQVWHHOWXEHV
SU(1 6HDPOHVVVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW1RQDOOR\
DQGDOOR\VWHHOWXEHVZLWKVSHFLILHGORZWHPSHUDWXUHSURSHUWLHV
SU(1 :HOGHGVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW1RQDOOR\VWHHO
WXEHVZLWKVSHFLILHGURRPWHPSHUDWXUHSURSHUWLHV
SU(1 :HOGHGVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW(OHFWULFZHOGHG
QRQDOOR\DQGDOOR\VWHHOWXEHVZLWKVSHFLILHGHOHYDWHGWHPSHUDWXUHSURSHUWLHV
SU(1 :HOGHGVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW1RQDOOR\DQG
DOOR\ILQHJUDLQVWHHOWXEHV
SU(1 :HOGHGVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW(OHFWULFZHOGHG
QRQDOOR\DQGDOOR\VWHHOWXEHVZLWKVSHFLILHGORZWHPSHUDWXUHSURSHUWLHV
SU(1 :HOGHGVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW6XEPHUJHGDUF
ZHOGHGQRQDOOR\DQGDOOR\VWHHOWXEHVZLWKVSHFLILHGHOHYDWHGWHPSHUDWXUHSURSHUWLHV
SU(1 :HOGHGVWHHOWXEHVIRUSUHVVXUHSXUSRVHV7HFKQLFDOGHOLYHU\FRQGLWLRQV3DUW6XEPHUJHGDUF
QRQDOOR\DQGDOOR\VWHHOWXEHVZLWKVSHFLILHGORZWHPSHUDWXUHSURSHUWLHV
SU(1 6WHHOWXEHVDQGILWWLQJVIRURQDQGRIIVKRUHSLSHOLQHV([WHUQDOWKUHHOD\HUH[WUXGHGSRO\HWK\OHQH
EDVHGFRDWLQJV
SU(1 6WHHOWXEHVDQGILWWLQJVIRURQDQGRIIVKRUHSLSHOLQHV([WHUQDOWKUHHOD\HUH[WUXGHGSRO\SURS\OHQH
EDVHGFRDWLQJV
SU(1 6WHHOWXEHVDQGILWWLQJVIRURQDQGRIIVKRUHSLSHOLQHV([WHUQDOIXVHGSRO\HWK\OHQHEDVHGFRDWLQJV
SU(1 6WHHOWXEHVDQGILWWLQJVIRURQDQGRIIVKRUHSLSHOLQHV([WHUQDOWZROD\HUH[WUXGHGSRO\HWK\OHQH
EDVHGFRDWLQJV
SU(1 6WHHOWXEHVDQGILWWLQJVIRURQDQGRIIVKRUHSLSHOLQHV([WHUQDOOLTXLGDSSOLHGHSR[\DQGHSR[\
PRGLILHGFRDWLQJV
SU(1 6WHHOWXEHVDQGILWWLQJVIRURQDQGRIIVKRUHSLSHOLQHV([WHUQDOOLTXLGDSSOLHGSRO\XUHWKDQHDQG
SRO\XUHWKDQHPRGLILHGFRDWLQJV
(1 *DVVXSSO\V\VWHPV3LSHOLQHVIRUPD[LPXPRSHUDWLQJSUHVVXUHXSWRDQGLQFOXGLQJEDU3DUW
*HQHUDOIXQFWLRQDOUHFRPPHQGDWLRQV
(1 *DVVXSSO\V\VWHPV3LSHOLQHVIRUPD[LPXPRSHUDWLQJSUHVVXUHXSWRDQGLQFOXGLQJEDU
3DUW6SHFLILFIXQFWLRQDOUHFRPPHQGDWLRQVIRUVWHHO
(1 &DWKRGLFSURWHFWLRQ([WHUQDORUJDQLFFRDWLQJVIRUWKHFRUURVLRQSURWHFWLRQRIEXULHGRULPPHUVHG
VWHHOSLSHOLQHVXVHGLQFRQMXQFWLRQZLWKFDWKRGLFSURWHFWLRQ7DSHVDQGVKULQNDEOHPDWHULDOV
(1 *DVSUHVVXUHUHJXODWLQJVWDWLRQVIRUWUDQVPLVVLRQDQGGLVWULEXWLRQ
(1 3UHVVXUHWHVWLQJFRPPLVVLRQLQJDQGGHFRPPLVVLRQLQJSURFHGXUHVIRUJDVVXSSO\V\VWHPV

‹%6,
3DJH
(1

(1 *DVVXSSO\V\VWHPV&RPSUHVVRUVWDWLRQV)XQFWLRQDOUHTXLUHPHQWV
SU(1 )ODQJHVDQGWKHLUMRLQWV'LPHQVLRQVRIJDVNHWVIRU&ODVVGHVLJQDWHGIODQJHV3DUW1RQ
PHWDOOLFIODWJDVNHWVZLWKRUZLWKRXWLQVHUWV
SU(1 )ODQJHVDQGWKHLUMRLQWV'LPHQVLRQVRIJDVNHWVIRU&ODVVGHVLJQDWHGIODQJHV3DUW6SLUDO
ZRXQGJDVNHWVIRUXVHZLWKVWHHOIODQJHV
SU(1 )ODQJHVDQGWKHLUMRLQWV'LPHQVLRQVRIJDVNHWVIRU&ODVVGHVLJQDWHGIODQJHV3DUW1RQ
PHWDOOLF37)(HQYHORSHJDVNHWV
SU(1 )ODQJHVDQGWKHLUMRLQWV'LPHQVLRQVRIJDVNHWVIRU&ODVVGHVLJQDWHGIODQJHV3DUW
&RUUXJDWHGIODWRUJURRYHGPHWDOOLFDQGILOOHGPHWDOOLFJDVNHWVIRUXVHZLWKVWHHOIODQJHV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

(1 *DVVXSSO\V\VWHPV:HOGLQJVWHHOSLSHZRUN)XQFWLRQDOUHTXLUHPHQWV
(1 *HQHUDOFULWHULDIRUWKHRSHUDWLRQRIYDULRXVW\SHVRIERGLHVSHUIRUPLQJLQVSHFWLRQ
(1 *HQHUDOUHTXLUHPHQWVIRUERGLHVRSHUDWLQJSURGXFWFHUWLILFDWLRQV\VWHPV
,62,(&*XLGH 

 'HILQLWLRQVV\PEROVDQGDEEUHYLDWLRQV

)RU WKH SXUSRVHV RI WKLV VWDQGDUG WKH IROORZLQJ GHILQLWLRQV DSSO\ 6\PEROV XVHG LQ IRUPXODH DUH GHILQHG ZKHUH
WKH\RFFXU


FRPPLVVLRQLQJ
WKHDFWLYLWLHVUHTXLUHGWRSUHVVXUL]HSLSHZRUNVWDWLRQVHTXLSPHQWDQGDVVHPEOLHVZLWKJDVDQGWRSXWWKHPLQWR
RSHUDWLRQ


FRQWURO]RQH
WKHVWULSRIODQGRYHUZKLFKWKHSLSHOLQHRSHUDWRUKDVDULJKWWRFRQWURODFWLYLWLHV


GHFRPPLVVLRQLQJ
WKHDFWLYLWLHVUHTXLUHGWRWDNHRXWRIVHUYLFHDQ\SLSHZRUNVWDWLRQHTXLSPHQWRUDVVHPEOLHVILOOHGZLWKJDVDQGWR
GLVFRQQHFWWKHPIURPWKHV\VWHP


GHVLJQIDFWRU
IR
DIDFWRUDSSOLHGZKHQFDOFXODWLQJWKHZDOOWKLFNQHVVRUSUHVVXUH


GHVLJQSUHVVXUH
'3
WKHSUHVVXUHRQZKLFKGHVLJQFDOFXODWLRQVDUHEDVHG


GHVLJQWHPSHUDWXUH
WKHWHPSHUDWXUHRQZKLFKGHVLJQFDOFXODWLRQVDUHEDVHG


HPHUJHQF\
DVLWXDWLRQZKLFKFRXOGDIIHFWWKHVDIHRSHUDWLRQRIWKHJDVVXSSO\V\VWHPDQGRUWKHVDIHW\RIWKHVXUURXQGLQJ
DUHDUHTXLULQJXUJHQWDFWLRQ


JDV
WKHJDVHRXVIXHOZKLFKLVLQJDVHRXVVWDWHDWDWHPSHUDWXUHRI•&XQGHUDWPRVSKHULFSUHVVXUH EDU
DEVROXWH

‹%6,
3DJH
(1


JDVGLVWULEXWLRQV\VWHP
WKHSLSHOLQHV\VWHPLQFOXGLQJSLSLQJDERYHDQGEHORZJURXQGDQGDOORWKHUHTXLSPHQWQHFHVVDU\WRVXSSO\WKHJDV
WRWKHFRQVXPHUV


JDVGLVWULEXWRU
WKHSULYDWHRUSXEOLFRUJDQL]DWLRQDXWKRUL]HGWRGLVWULEXWHJDVWRFRQVXPHUVWKURXJKDJDVGLVWULEXWLRQV\VWHP


JDVWUDQVPLVVLRQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

WKHDFWLYLW\LQWHQGHGWRFRQYH\JDVIURPRQHSODFHWRDQRWKHUWKURXJKSLSHOLQHVLQRUGHUWRVXSSO\JDVWR
GLVWULEXWLRQV\VWHPVRUWRLQGXVWULDOFRQVXPHUV


LQFLGHQW
DQXQH[SHFWHGRFFXUUHQFHZKLFKFRXOGOHDGWRDQHPHUJHQF\VLWXDWLRQ

7KLVLQFOXGHVDOHDNDJHRIJDVRUSODQWIDLOXUH


LQFLGHQWDOSUHVVXUH
,3
WKHSUHVVXUHZKLFKRFFXUVLQFLGHQWDOO\ZLWKLQDV\VWHPDWZKLFKDVDIHW\GHYLFHEHFRPHVRSHUDWLYH


LQVSHFWLRQ
WKHSURFHVVRIPHDVXULQJH[DPLQLQJWHVWLQJJDXJLQJRURWKHUZLVHGHWHUPLQLQJWKHVWDWXVRILWHPVRIWKHSLSHOLQH
V\VWHPRULQVWDOODWLRQDQGFRPSDULQJLWZLWKWKHDSSOLFDEOHUHTXLUHPHQWV


LQVWDOODWLRQ
HTXLSPHQWDQGIDFLOLWLHVIRUWKHH[WUDFWLRQSURGXFWLRQFKHPLFDOWUHDWPHQWPHDVXUHPHQWFRQWUROVWRUDJHRU
RIIWDNHRIWKHWUDQVSRUWHGJDV


LQVWDOODWLRQWHPSHUDWXUH
WKHWHPSHUDWXUHDULVLQJIURPDPELHQWRULQVWDOODWLRQFRQGLWLRQVGXULQJOD\LQJRUGXULQJFRQVWUXFWLRQ


PDLQWHQDQFH
WKHFRPELQDWLRQRIDOOWHFKQLFDODQGDVVRFLDWHGDGPLQLVWUDWLYHDFWLRQVLQWHQGHGWRNHHSDQLWHPLQRUUHVWRUHLWWRD
VWDWHLQZKLFKLWFDQSHUIRUPLWVUHTXLUHGIXQFWLRQ


PD[LPXPLQFLGHQWDOSUHVVXUH
0,3
WKHPD[LPXPSUHVVXUHZKLFKDJDVV\VWHPFDQH[SHULHQFHGXULQJDVKRUWWLPHOLPLWHGE\WKHVDIHW\GHYLFHV


PD[LPXPRSHUDWLQJSUHVVXUH
023
WKHPD[LPXPSUHVVXUHDWZKLFKDV\VWHPFDQEHRSHUDWHGFRQWLQXRXVO\XQGHUQRUPDOFRQGLWLRQV

127( 1RUPDOFRQGLWLRQVDUHQRIDXOWLQDQ\GHYLFHRUVWUHDP


QDWLRQDOUHTXLUHPHQWV
UHTXLUHPHQWVIROORZLQJIURPQDWLRQDOOHJLVODWLRQRUPRUHGHWDLOHGRUVWULQJHQWQDWLRQDOVWDQGDUGV

‹%6,
3DJH
(1


RQVKRUHSLSHOLQH
DEXULHGDQGRUDERYHJURXQGSLSHOLQHLQFOXGLQJWKRVHVHFWLRQVODLGLQRUDFURVVLQODQGODNHVRUZDWHUFRXUVHV


RSHUDWLQJSUHVVXUH
23
WKHSUHVVXUHZKLFKRFFXUVZLWKLQDV\VWHPXQGHUQRUPDORSHUDWLQJFRQGLWLRQV


RSHUDWLQJWHPSHUDWXUH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

27
WKHWHPSHUDWXUHZKLFKRFFXUVZLWKLQDV\VWHPXQGHUQRUPDORSHUDWLQJFRQGLWLRQV


SLJ
DGHYLFHZKLFKLVGULYHQWKURXJKDSLSHOLQHE\WKHIORZRIIOXLGIRUSHUIRUPLQJYDULRXVLQWHUQDODFWLYLWLHV GHSHQGLQJ
RQSLJW\SH VXFKDVVHSDUDWLQJIOXLGVFOHDQLQJRULQVSHFWLQJWKHSLSHOLQH


SLSHOLQH
DV\VWHPRISLSHZRUNZLWKDOODVVRFLDWHGHTXLSPHQWDQGVWDWLRQVXSWRWKHSRLQWRIGHOLYHU\7KLVSLSHZRUNLV
PDLQO\EHORZJURXQGEXWDOVRLQFOXGHVDERYHJURXQGSDUWV


SLSHOLQHFRPSRQHQWV
WKHHOHPHQWVIURPZKLFKWKHSLSHOLQHLVFRQVWUXFWHG7KHIROORZLQJDUHGLVWLQFWSLSHOLQHHOHPHQWV
± SLSHLQFOXGLQJFROGIRUPHGEHQGV
± ILWWLQJV
(;$03/( 5HGXFHUVWHHVIDFWRU\PDGHHOERZVDQGEHQGVIODQJHVFDSVZHOGLQJVWXEVPHFKDQLFDOMRLQWV
± IDEULFDWLRQVPDQXIDFWXUHGIURPWKHHOHPHQWVUHIHUUHGWRDERYH
(;$03/( 0DQLIROGVVOXJFDWFKHUVSLJODXQFKLQJUHFHLYLQJVWDWLRQVPHWHULQJDQGFRQWUROUXQV
± HTXLSPHQW
(;$03/( 9DOYHVH[SDQVLRQMRLQWVLQVXODWLRQMRLQWVSUHVVXUHUHJXODWRUVSXPSVFRPSUHVVRUV
± SUHVVXUHYHVVHOV


SLSHOLQHRSHUDWRU
WKHSULYDWHRUSXEOLFRUJDQL]DWLRQDXWKRUL]HGWRGHVLJQFRQVWUXFWDQGRURSHUDWHDQGPDLQWDLQWKHJDVVXSSO\
V\VWHP


SLSHZRUN
DQDVVHPEO\RISLSHVDQGILWWLQJV


SRLQWRIGHOLYHU\
WKHSRLQWRIWUDQVIHURIRZQHUVKLSRIJDVIURPVXSSOLHUWRWKHFXVWRPHU
127( 7KLVFDQEHDWDYDOYHRUDWWKHPHWHURXWOHWFRQQHFWLRQ


SUHFRPPLVVLRQLQJ
DVHULHVRIDFWLYLWLHVLQFOXGLQJFOHDQLQJDQGSRVVLEOHGU\LQJH[HFXWHGSULRUWRSLSHOLQHFRPPLVVLRQLQJ


SUHVVXUH
WKHJDXJHSUHVVXUHRIWKHIOXLGLQVLGHWKHV\VWHPPHDVXUHGLQVWDWLFFRQGLWLRQV

‹%6,
3DJH
(1


SUHVVXUHFRQWUROV\VWHP
DFRPELQHGV\VWHPLQFOXGLQJSUHVVXUHUHJXODWLQJSUHVVXUHVDIHW\DQGHYHQWXDOO\SUHVVXUHUHFRUGLQJDQGDODUP
V\VWHPV


SUHVVXUHUHJXODWLQJV\VWHP
WKHV\VWHPZKLFKHQVXUHVWKDWDSUHVVXUHLVPDLQWDLQHGDWWKHRXWOHWV\VWHPZLWKLQUHTXLUHGOLPLWV


SUHVVXUHVDIHW\V\VWHP
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

DV\VWHPZKLFKLQGHSHQGHQWRIWKHSUHVVXUHUHJXODWLQJV\VWHPHQVXUHVWKDWWKHRXWOHWSUHVVXUHRIWKHUHJXODWRU
GRHVQRWH[FHHGWKHSUHVHWYDOXH


UHFRPPLVVLRQLQJ
WKHDFWLYLWLHVUHTXLUHGWRSXWDGHFRPPLVVLRQHGSLSHOLQHDVVRFLDWHGVWDWLRQVDQGHTXLSPHQWLQWRVHUYLFHDJDLQ


VSHFLDOFURVVLQJ
DSRLQWDWZKLFKWKHSLSHOLQHKDVWRSDVVDVSHFLDOIHDWXUH
(;$03/( 0DMRUURDGUDLOZD\ULYHUFDQDOG\NH


VWDWLRQ
DSODQWRUIDFLOLW\IRUWKHRSHUDWLRQDQGRUSURFHVVLQJRIJDVVXSSO\V\VWHPV


VWUHQJWKWHVW
DVSHFLILFSURFHGXUHWRYHULI\WKDWWKHSLSHZRUNDQGRUVWDWLRQPHHWVWKHUHTXLUHPHQWVIRUPHFKDQLFDOVWUHQJWK


VWUHQJWKWHVWSUHVVXUH
673
WKHSUHVVXUHDSSOLHGWRDV\VWHPGXULQJVWUHQJWKWHVWLQJ


WHVWSUHVVXUH
73
WKHSUHVVXUHWRZKLFKWKHJDVVXSSO\V\VWHPLVVXEMHFWHGWRHQVXUHWKDWLWFDQRSHUDWHVDIHO\


WLJKWQHVVWHVW
DVSHFLILFSURFHGXUHWRYHULI\WKDWWKHSLSHZRUNDQGRUVWDWLRQPHHWVWKHUHTXLUHPHQWVIRUOHDNWLJKWQHVV


WLJKWQHVVWHVWSUHVVXUH
7KHSUHVVXUHDSSOLHGWRDV\VWHPGXULQJWLJKWQHVVWHVWLQJ


YROXPHXQGHUQRUPDOFRQGLWLRQV
DTXDQWLW\RIJDVZKLFKLQWKHGU\VWDWHRFFXSLHVDYROXPHRIPDWDWPRVSKHULFSUHVVXUH EDUDEVROXWH
DWDWHPSHUDWXUHRI•&


YROXPHXQGHUVWDQGDUGFRQGLWLRQV
DTXDQWLW\RIJDVZKLFKLQWKHGU\VWDWHRFFXSLHVDYROXPHRIPDWDWPRVSKHULFSUHVVXUH EDUDEVROXWH
DWDWHPSHUDWXUHRI•&

‹%6,
3DJH
(1

 4XDOLW\V\VWHP

7KHOLIHRIDSLSHOLQHIRUWUDQVPLVVLRQRIJDVFDQEHGLYLGHGLQWRWKUHHSKDVHV
± WKHGHVLJQ
± WKHFRQVWUXFWLRQDQGWHVWLQJ
± WKHRSHUDWLRQDQGPDLQWHQDQFH

$TXDOLW\V\VWHPVKRXOGEHDSSOLHGWRWKHGHVLJQFRQVWUXFWLRQWHVWLQJRSHUDWLRQDQGPDLQWHQDQFHDFWLYLWLHVLQ
DFFRUGDQFHZLWKWKLVVWDQGDUG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

5HIHUHQFHPD\EHPDGHWRWKH(1,62VHULHVRIVWDQGDUGVRUWRHTXLYDOHQWTXDOLW\DVVXUDQFHV\VWHPV

$IWHUWKHSLSHOLQHKDVEHHQFRPPLVVLRQHGWKHLQWHJULW\VKRXOGEHPDLQWDLQHGE\DSUHFLVHO\GHILQHGSURJUDPPHRI
RSHUDWLRQPDLQWHQDQFHDQGFRQGLWLRQPRQLWRULQJ DSLSHOLQHLQWHJULW\PDQDJHPHQWV\VWHP 

&RPSHWHQWSHUVRQQHOFDSDEOHRIDVVHVVLQJWKHTXDOLW\RIWKHZRUNZLWKLQWKHVFRSHRIWKLVVWDQGDUGVKDOOEH
HPSOR\HGLQDOODFWLYLWLHVLQWKHGHVLJQFRQVWUXFWLRQWHVWLQJDQGRSHUDWLQJSKDVHV

 6DIHW\DQGWKHHQYLURQPHQW

 ,QWURGXFWLRQ

9DULRXVVDIHW\PHDVXUHVDUHUHTXLUHGWRHQVXUHDVDIHSLSHOLQH0HDVXUHVWKDWDUHDSSURSULDWHWRWKHVSHFLILF
FLUFXPVWDQFHVVKDOOEHDGRSWHG

 $SSURSULDWHVDIHW\PHDVXUHV

3RVVLEOHPHDVXUHVWRHQVXUHVDIHW\LQGHVLJQFRQVWUXFWLRQDQGRSHUDWLRQDUHOLVWHGEHORZ7KHOLVWLVQRWLQWHQGHG
WREHH[KDXVWLYHQRUZLOOLWEHQHFHVVDU\WRLQFRUSRUDWHDOOWKHPHDVXUHVRQHDFKRFFDVLRQ

:KHQVHOHFWLQJPHDVXUHVFRQVLGHUDWLRQVKDOOEHJLYHQWRWKHVDIHW\DQGHQYLURQPHQWDOFRQGLWLRQVH[LVWLQJDWWKH
WLPHRIFRQVWUXFWLRQIRUZKLFKILUPGHWDLOVDUHNQRZQ
± $FRQWURO]RQHVKRXOGEHHVWDEOLVKHGWRFRQWURODOOWKLUGSDUW\DFWLYLWLHVLQRUGHUWRVDIHJXDUGWKHSLSHOLQH
DJDLQVWLQWHUIHUHQFH
± ,IDV\VWHPRIDUHDFODVVLILFDWLRQLVXVHGGHVLJQIDFWRUVVKRXOGEHFKRVHQUHOHYDQWWRWKHFODVVLILFDWLRQ
OHYHOV
7KLVGHVLJQIDFWRUPD\EHLQFUHDVHGLIDGGLWLRQDOPHDVXUHVDUHWDNHQDJDLQVWWKLUGSDUW\LQWHUIHUHQFH IRU
OLPLWDWLRQRQWKHGHVLJQIDFWRUUHIHUHQFHLVPDGHWR 
± 7KHURXWHRIWKHSLSHOLQHVKRXOGEHDWDQDSSURSULDWHGLVWDQFHIURPEXLOGLQJV7KHGLVWDQFHVKRXOGEHIL[HG
E\WKHSDUWLFXODUSDUDPHWHUVDQGRUQDWLRQDOUHTXLUHPHQWV
± )RUKLJKVWUHQJWKSLSHVWHHOVDSSURSULDWHWRXJKQHVVSURSHUWLHVIRUIUDFWXUHDUUHVWFDSDELOLW\VKRXOGEH
VHOHFWHG
± 7KHPLQLPXPGHSWKIRUWKHSLSHOLQHVKDOOEHJUHDWHUWKDQWKDWRIQRUPDODJULFXOWXUDOKRUWLFXOWXUDODFWLYLWLHV
H[SHFWHGLQWKHDUHD7KHSUREDELOLW\RIWKLUGSDUW\LQWHUIHUHQFHWRWKHSLSHOLQHZLOOGHFUHDVHLIDGHSWK
JUHDWHUWKDQWKHPLQLPXPVSHFLILHGLQLVDGRSWHG
± $GGLWLRQDOIRUPVRIPHFKDQLFDOSURWHFWLRQFDQUHGXFHLQWHUIHUHQFHE\WKLUGSDUW\DFWLYLW\'HVLJQHUVVKDOO
FDUHIXOO\VHOHFWWKHIRUPVRIWKHDGGLWLRQDOSURWHFWLRQWRPLQLPL]HDQ\DGYHUVHHIIHFWVRQWKHHIILFLHQF\RIWKH
FDWKRGLFSURWHFWLRQ
± 7KHURXWHRIWKHSLSHOLQHVKRXOGEHLGHQWLILHGE\DORFDWLQJV\VWHPVXFKDVPDUNHUV
± 3LSHOLQHVDIHW\FDQIXUWKHUEHLQFUHDVHGE\HQVXULQJDQDGHTXDWHIUHTXHQF\RIVXUYHLOODQFH

‹%6,
3DJH
(1

 5RXWLQJFRQVLGHUDWLRQV

 ,QWURGXFWLRQ

6DIHW\HQYLURQPHQWDODQGWHFKQLFDOFRQVLGHUDWLRQVDUHWKHSULPDU\IDFWRUVJRYHUQLQJWKHSLSHOLQHURXWH

7KHVKRUWHVWURXWHQHHGQRWWREHWKHPRVWVXLWDEOH3K\VLFDODQGHQYLURQPHQWDOREVWDFOHVKLJKYROWDJHFDEOHV
DQGLQVWDOODWLRQVDQGRWKHUIDFWRUVVKDOOEHFRQVLGHUHG

7KHIDFWRUVFDQEHEURDGO\VHSDUDWHGLQWRDERYHJURXQG WRSRJUDSKLFDO DQGEHORZJURXQG VXEWHUUDQHDQ IDFWRUV


,WLVXVXDOO\FRQYHQLHQWWRFRQVLGHUERWKQDWXUDODQGPDQPDGHIHDWXUHVXQGHUWKHVHWZRKHDGLQJV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

 6XUYH\V

$QHVVHQWLDOSUHOXGHWRSLSHOLQHSURMHFWVLVWRDFTXLUHIURPUHFRUGVPDSVDQGSK\VLFDOVXUYH\DVHWRIGDWDWKDWLV
UHOHYDQWIRUWKHGHVLJQFRQVWUXFWLRQDQGVDIHDQGUHOLDEOHRSHUDWLRQRIWKHSLSHOLQH7KHDGRSWLRQRIDSUHOLPLQDU\
URXWHVKDOOEHSUHFHGHGE\DGHVNVWXG\PDNLQJXVHRIDOODYDLODEOHLQIRUPDWLRQ

%HIRUHDURXWHLVILQDOO\DGRSWHGIRUFRQVWUXFWLRQDSK\VLFDOVXUYH\VKDOOEHPDGHDLGHGDVQHFHVVDU\E\DHULDO
SKRWRJUDSK\VRLOVXUYH\VXQGHUZDWHUREVHUYDWLRQDQGDUHYLHZRIJHRJUDSKLFDOJHRWHFKQLFDOWRSRJUDSKLFDODQG
HQYLURQPHQWDOIHDWXUHVDVZHOODVVDIHW\UHODWHGDVSHFWVLQFRQQHFWLRQZLWKRWKHUDFWLYLWLHVDORQJWKHSLSHOLQH
URXWH7KHURXWHVXUYH\VKDOOFRYHUDVXIILFLHQWZLGWKDQGEHVXIILFLHQWO\DFFXUDWHWRLGHQWLI\IHDWXUHVWKDWFRXOG
DGYHUVHO\LQIOXHQFHWKHLQVWDOODWLRQDQGRSHUDWLRQRIWKHSLSHOLQH

 (QYLURQPHQWDOLPSDFW

7KHSODQQLQJRIDQ\SURSRVHGSLSHOLQHURXWHVKDOOEHDSSURDFKHGV\VWHPDWLFDOO\WRLGHQWLI\DQGUHFRUG
HQYLURQPHQWDOLVVXHVZKLFKFRXOGEHDIIHFWHG'HWDLOHGDVVHVVPHQWVPD\QHHGWREHXQGHUWDNHQWRDVFHUWDLQWKH
LPSDFWRIWKHSLSHOLQHRQHQYLURQPHQWDOO\VHQVLWLYHDUHDV$PRQJHQYLURQPHQWDOIDFWRUVWREHFRQVLGHUHGLQ
VHOHFWLQJURXWHDQGVWDWLRQORFDWLRQVFDUHVKDOOEHWDNHQWRLGHQWLI\WKHSRVVLEOHHIIHFWVRQWKHIROORZLQJ
± DUHDVRIRXWVWDQGLQJQDWXUDOEHDXW\
± DQFLHQWPRQXPHQWVDUFKDHRORJLFDODQGRUQDPHQWDOVLWHV
± QDWXUDOUHVRXUFHVVXFKDVZDWHUFDWFKPHQWDUHDVIRUHVWU\
± IORUDDQGIDXQD
$OVRWKHIROORZLQJDVSHFWVVKDOOEHFRQVLGHUHG
± WKHUHGXFWLRQRIQRLVHDQGYLEUDWLRQ
± WKHDYRLGDQFHRIRGRXUDQGGXVWDQGGHWHULRUDWLRQRIDLUTXDOLW\
2WKHUFRQVLGHUDWLRQVDSSO\LQJWRSLSHOLQHVODLGXQGHULQODQGZDWHUFRXUVHVLQFOXGH
± WKHXQGHUZDWHUHQYLURQPHQW
± XQGHUZDWHUGHYHORSPHQW
± EHGFRQGLWLRQV

 *URXQGFRQGLWLRQV

7KHIROORZLQJJURXQGFRQGLWLRQVVKDOOEHFRQVLGHUHGDQGFDUHIXOO\LQYHVWLJDWHGGXULQJWKHURXWHSODQQLQJVWDJH
± DUHDVRIJHRWHFKQLFDOLQVWDELOLW\LQFOXGLQJIDXOWVDQGILVVXULQJ
± VRIWRUZDWHUORJJHGJURXQG
± FRUURVLYHQDWXUHRIWKHVRLO
± URFNDQGKDUGJURXQG
± IORRGSODLQV
± DUHDVZLWKKLJKVHLVPLFULVN
± PRXQWDLQRXVDUHDV
± H[LVWLQJRUSRWHQWLDODUHDVRIODQGVOLSSDJHVXEVLGHQFHDQGGLIIHUHQWLDOVHWWOHPHQW

‹%6,
3DJH
(1

± PLQLQJDUHDVDQGTXDUU\LQJ
± LQILOOODQGDQGZDVWHGLVSRVDOVLWHVLQFOXGLQJWKRVHFRQWDPLQDWHGE\GLVHDVHRUUDGLRDFWLYLW\
,IDQ\RIWKHVHFRQGLWLRQVDUHH[SHFWHGGXULQJWKHOLIHWLPHRIWKHSLSHOLQHPRQLWRULQJRIWKHVHDVSHFWVVKDOOEH
LQFRUSRUDWHGLQWRWKHUHJXODUVXUYHLOODQFHSURFHGXUHV7KLVFDQLQFOXGHPHDVXUHPHQWRIORFDOJURXQGPRYHPHQWV
DQGFKDQJHVLQSLSHOLQHVWUHVVHV

 /LQHYDOYHVSDFLQJ

3LSHOLQHV\VWHPVVKRXOGEHVHFWLRQDOL]HGXVLQJOLQHYDOYHV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

,QGHWHUPLQLQJWKHVSDFLQJRIOLQHYDOYHVFRQVLGHUDWLRQVKRXOGEHJLYHQWRRSHUDWLQJSUHVVXUHSLSHOLQHGLDPHWHU
WLPHWDNHQWRDUULYHDWWKHYDOYHVLWHWKHQHHGIRUOLQHYDOYHVIRURSHUDWLRQDOSXUSRVHVWKHSRVLWLRQRIWKHQHDUHVW
RIIWDNHVDQGRWKHUH[LVWLQJYDOYHV

 3UHVVXUHVDIHW\

 3UHVVXUHOHYHOV

6WUHVVDQGVWUDLQFDOFXODWLRQVRQWKHSLSHOLQHGXULQJWKHGHVLJQSKDVHVKDOOEHEDVHGRQWKHGHVLJQSUHVVXUH '3
RIWKHSLSHOLQH

7KHSLSHOLQHVKDOOEHSUHVVXUHWHVWHGDIWHUFRQVWUXFWLRQDQGSULRUWRRSHUDWLRQ7KHWHVWSUHVVXUH 73 VKDOOEH
FKRVHQLQDFFRUGDQFHZLWK

7KHPD[LPXPRSHUDWLQJSUHVVXUH 023 VKDOOQRWH[FHHGWKHGHVLJQSUHVVXUH '3 

 1RUPDORSHUDWLRQ

$SUHVVXUHFRQWUROV\VWHPVKDOOEHSURYLGHGWRHQVXUHWKDWGXULQJQRUPDORSHUDWLRQWKHVXVWDLQHGRSHUDWLQJ
SUHVVXUHGRHVQRWH[FHHGWKHPD[LPXPRSHUDWLQJSUHVVXUH 023 DWDQ\SRLQWLQWKHSLSHOLQH7KHSUHVVXUH
UHJXODWRUVVKDOOEHVL]HGIRUWKHQRUPDORSHUDWLQJFRQGLWLRQVH[SHFWHG

7KHVXVWDLQHGRSHUDWLQJSUHVVXUHLVWKHPD[LPXPVHWSUHVVXUHIRUWKHSUHVVXUHUHJXODWLRQGHYLFHV+RZHYHU
ZKHQRSHUDWLQJDWRUQHDUWKHPD[LPXPRSHUDWLQJSUHVVXUHWKLVSUHVVXUHPD\EHH[FHHGHGE\QRPRUHWKDQ
RILWVYDOXHGXHWRWKHYDULDWLRQVRISUHVVXUHUHJXODWLRQGHYLFHV

 5HTXLUHPHQWVIRULQVWDOODWLRQRISUHVVXUHVDIHW\GHYLFHV

7KURXJKRXWDJDVVXSSO\V\VWHPSUHVVXUHFDQEHUHGXFHGRULQFUHDVHGDWRQHRUPRUHVWDWLRQV

$SDUWIURPSUHVVXUHUHJXODWLRQGHYLFHVFRQVLGHUDWLRQVKDOOEHJLYHQWRVDIHW\GHYLFHVZKLFKSURWHFWWKH
GRZQVWUHDPSLSHOLQHVHFWLRQDJDLQVWIDLOXUHRIWKHSUHVVXUHUHJXODWLRQV\VWHP,ILQVWDOOHGWKHVDIHW\GHYLFHVKDOO
RSHUDWHLQGHSHQGHQWO\RIWKHDFWLYHSUHVVXUHUHJXODWLRQGHYLFH

$QLQFLGHQWDOSUHVVXUHULVHLVDFFHSWDEOHSURYLGHGV\VWHPVH[LVWWRDXWRPDWLFDOO\OLPLWWKHH[WHQWRIWKHH[FHVVWR
DERYHWKHPD[LPXPRSHUDWLQJSUHVVXUH DORZHUYDOXHPD\EHVHOHFWHGIRUWKLVSUHVVXUHZKLFKLVWKH
PD[LPXPLQFLGHQWDOSUHVVXUHRU0,3 7KHPD[LPXPRSHUDWLQJSUHVVXUHVKDOOQRWEHH[FHHGHGIRUORQJHUWKDQLV
VWULFWO\QHFHVVDU\WRFKHFNWKHPDOIXQFWLRQDQGWRUHVHWWKHQRUPDORSHUDWLQJFRQGLWLRQV7KHVDIHW\GHYLFH V VKDOO
EHVHWVXFKWKDWWKHPD[LPXPLQFLGHQWDOSUHVVXUHLVQRWH[FHHGHG VHH)LJXUH 

7KHLQVWDOODWLRQRISUHVVXUHVDIHW\GHYLFHVIRUSUHVVXUHUHJXODWLQJV\VWHPVVKDOOEHLQDFFRUGDQFHZLWK(1
DQGIRUFRPSUHVVRUVWDWLRQVLQDFFRUGDQFHZLWK(1

 3LSHOLQHZLWK'3HTXDOWRRUOHVVWKDQEDUDQGKRRSVWUHVVHTXDOWRRUOHVVWKDQ5W

)RUSLSHOLQHVZLWKDGHVLJQSUHVVXUHHTXDOWRRUOHVVWKDQEDUDQGDKRRSVWUHVVOHYHODWWKHGHVLJQSUHVVXUH
FDOFXODWHGDFFRUGLQJWRWKHIRUPXODLQHTXDOWRRUOHVVWKDQVSHFLILHGPLQLPXP\LHOGVWUHQJWK 5W WKH
LQFLGHQWDOSUHVVXUHULVHUHIHUUHGWRLQPD\EHLQFUHDVHGWRDERYHWKHPD[LPXPRSHUDWLQJSUHVVXUH

‹%6,
3DJH
(1

 3LSHOLQHZLWK'3HTXDOWRRUOHVVWKDQEDUDQGKRRSVWUHVVHTXDOWRRUOHVVWKDQ5W

3LSHOLQHVZLWKDGHVLJQSUHVVXUHHTXDOWRRUOHVVWKDQEDUDQGDKRRSVWUHVVOHYHODWWKHGHVLJQSUHVVXUH
FDOFXODWHGDFFRUGLQJWRWKHIRUPXODLQHTXDOWRRUOHVVWKDQVSHFLILHGPLQLPXP\LHOGVWUHQJWK 5W PD\
EHGHVLJQHGDQGRSHUDWHGLQDFFRUGDQFHZLWK(1DQG(1+RZHYHUFRQVWUXFWLRQDQGWHVWLQJ
VKDOOEHFDUULHGRXWLQDFFRUGDQFHZLWKWKLVVWDQGDUG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

‹%6,
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

3DJH
(1

)LJXUH*XLGHWRSUHVVXUHOLPLWLQJV\VWHPV

‹%6,
3DJH
(1

 'HVLJQ

 *HQHUDO

 'HVLJQSULQFLSOHV

7KHGHVLJQRIWKHSLSHOLQHVKDOOOHDGWRDVDIHV\VWHPIRUWUDQVPLVVLRQRIJDV

7KHGHVLJQVKDOOFRQVLGHUDOOWHFKQLFDOLVVXHVWRJHWKHUZLWKWKHHQYLURQPHQWDODQGVDIHW\DVSHFWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHGHVLJQVKDOOWDNHLQWRDFFRXQWWKHFRQWUROOHGUHOHDVHRIJDVRURWKHUPDWHULDOVGXULQJFRQVWUXFWLRQRSHUDWLRQRU
PDLQWHQDQFHRIWKHSLSHOLQH

7KHGHVLJQSULQFLSOHVVKDOOEHGRFXPHQWHGWRJHWKHUZLWKSURFHGXUHVLQWKHGHVLJQUHSRUW VHH 

 %DVLVRIGHVLJQ

3LSHOLQH

7KHSLSHOLQHVKDOOEHOHDNWLJKWDQGVKDOOKDYHWKHQHFHVVDU\UHVLVWDQFHWRVDIHO\ZLWKVWDQGDOOWKHIRUFHVWRZKLFK
LWLVH[SHFWHGWREHH[SRVHGGXULQJFRQVWUXFWLRQWHVWLQJDQGRSHUDWLRQ

7KHSLSHOLQHFRQVLVWVRISLSHOLQHVHFWLRQV VHHH[DPSOH DQGVWDWLRQV VHHH[DPSOH 'XULQJWKHGHVLJQSKDVH


WKHVHSDUWVRIWKHSLSHOLQHFDQEHFRQVLGHUHGVHSDUDWHO\DVORQJDVWKHLQWHUDFWLRQRIIRUFHVEHWZHHQWKH
FRQQHFWHGSDUWVLVDOVRFRQVLGHUHG

(;$03/(6 %XULHGVXEPHUJHGDERYHJURXQGWUHQFKOHVV

(;$03/(6 &RPSUHVVLRQSUHVVXUHUHJXODWLQJPHWHULQJ

&URVVLQJVZLWKUDLOZD\VPDMRUURDGVDQGZDWHUZD\VVKDOOEHGHVLJQHGLQFRQVXOWDWLRQZLWKWKHRZQHUVDQGRU
DXWKRULWLHV

)RUFURVVLQJVZLWKG\NHVDQGIORRGGHIHQFHVH[WUDPHDVXUHVFDQEHUHTXLUHGWRSUHYHQWSRVVLEOHIORRGLQJRIWKH
KLQWHUODQG

 3LSHOLQHVHFWLRQV

3LSHOLQHVHFWLRQVVKDOOEHVXSSRUWHGDQFKRUHGRUEXULHGVXFKWKDWGXULQJLWVOLIHWLPHWKHSLSHOLQHVHFWLRQZLOOQRW
PRYHZLWKUHVSHFWWRLWVLQVWDOOHGSRVLWLRQH[FHSWIRUSHUPLWWHGGLVSODFHPHQWGXHWRSUHVVXUHORDGVWKHUPDOORDGV
DQGGLVSODFHPHQWVH[SHFWHGDIWHULQVWDOODWLRQ

,IDVXEPHUJHGSLSHOLQHVHFWLRQLVQRWEXULHGFRYHUHGRUDQFKRUHGWKHSLSHZRUN
VRZQZHLJKWXQGHUDOOFRQGLWLRQV
ZKHWKHUHPSW\ILOOHGZLWKPHGLXPRUILOOHGZLWKWHVWPHGLXPVKDOOEHVXFKDVWRJXDUDQWHHKRUL]RQWDODQGYHUWLFDO
VWDELOLW\GXULQJERWKWKHFRQVWUXFWLRQDQGRSHUDWLQJSKDVHV

127( 7KHGHVLJQSUHVVXUHDQGGLDPHWHUUHTXLUHGIRUDSLSHOLQHDUHGHWHUPLQHGE\JDVIORZUHTXLUHPHQWVDQG
HFRQRPLFVDQGWKLVGHWHUPLQDWLRQIDOOVRXWVLGHWKHVFRSHRIWKLVVWDQGDUG

,QLWLDOGHVLJQWRGHWHUPLQHWKHZDOOWKLFNQHVVRIWKHSLSHOLQHVHFWLRQLVEDVHGRQLQWHUQDOSUHVVXUHDQGDGHVLJQ
IDFWRU$GGLWLRQDOPHDVXUHVFDQEHUHTXLUHGWRSURYLGHSURWHFWLRQDJDLQVWWKLUGSDUW\LQWHUIHUHQFHDVUHIHUUHGWRLQ


:KHUHDVHFWLRQRIWKHSLSHOLQHSDVVHVWKURXJKDUHDVZKLFKFDQLPSRVHVLJQLILFDQWH[WHUQDOORDGVLWLVQHFHVVDU\
IRUDPRUHFRPSUHKHQVLYHGHVLJQSURFHVVWREHIROORZHGDVVHWRXWLQ7RGHFLGHZKHWKHUWKHVHDGGLWLRQDO
UHTXLUHPHQWVDUHQHFHVVDU\DQDQDO\VLVRIDOOH[SHFWHGIRUFHVVKDOOEHXQGHUWDNHQRUUHIHUHQFHPDGHWRD
SUHYLRXVDQDO\VLVXQGHUWDNHQIRUDVLPLODUSLSHOLQH

‹%6,
3DJH
(1

 6WDWLRQSLSHZRUN

7KHSUHVVXUHVWUHQJWKRIVWDWLRQSLSHZRUNVKRXOGEHDFKLHYHGE\VHOHFWLQJVXLWDEOHSLSHDQGFRPSRQHQWVIURPD
OLPLWHGUDQJHRISUHVVXUHUDWLQJV

%HFDXVHVWDWLRQSLSHZRUNHLWKHUEXULHGRUDERYHJURXQGLVRIWHQVXEMHFWWRJUHDWHUH[WHUQDOIRUFHVGXHWR
WHPSHUDWXUHYLEUDWLRQDQGUHVWUDLQWIRUFHVWKDQWKHWUDQVPLVVLRQSLSHOLQHLWFDQEHQHFHVVDU\WRLPSRVHDGGLWLRQDO
UHTXLUHPHQWV

 :DOOWKLFNQHVVGHWHUPLQDWLRQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

,IQRDGGLWLRQDOUHTXLUHPHQWVDUHLPSRVHGIRUVWUDLJKWSLSHWKHPLQLPXPZDOOWKLFNQHVVWRZLWKVWDQGWKHLQWHUQDO
SUHVVXUHLVFDOFXODWHGDVIROORZV
'3 ™ '
7 PLQ 
s S
ZLWKWKHUHTXLUHPHQW

s S ˆI R 5 W  q
ZKHUH
7PLQ LVWKHFDOFXODWHG PLQLPXPZDOOWKLFNQHVVLQ
PLOOLPHWUHV PP 
'3 LVWKHGHVLJQSUHVVXUHLQEDU
' LVWKHRXWVLGHGLDPHWHURIWKHSLSHLQDFFRUGDQFHZLWK(1LQPLOOLPHWUHV PP 
,I'LLVSUHVHW'VKDOOHTXDO'L7PLQ'LEHLQJWKHLQVLGHGLDPHWHULQPLOOLPHWUHV PP 
S LVWKHKRRSVWUHVVLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
IR LVWKHGHVLJQIDFWRU
5W LVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKDWWKHGHVLJQWHPSHUDWXUHLQQHZWRQVSHUVTXDUH
PLOOLPHWUH 1PP 
7HPSHUDWXUHOHVVWKDQRUHTXDOWR•& 5W  5W
7HPSHUDWXUHRYHU•& WKHYDOXHRIWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWK
KDVWREHFRUUHFWHGIRUWKHWHPSHUDWXUH
5W LVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKDWDPELHQWWHPSHUDWXUHLQQHZWRQVSHUVTXDUH
PLOOLPHWUH 1PP  UHI(1 

7KHPD[LPXPGHVLJQIDFWRU IR IRULQWHUQDOSUHVVXUHWREHXVHGIRUWKHSLSHOLQHVHFWLRQLQTXHVWLRQLVDVIROORZV

± XQGHUJURXQGVHFWLRQVH[FHSWVWDWLRQV ”

± SLSHOLQHVLQWXQQHOVFRQWLQXRXVO\VXSSRUWHG ”

± VWDWLRQV ”D
D
ZLWKWKHIXUWKHUZDOOWKLFNQHVVUHTXLUHPHQWVLQ

127( 7KHZDOOWKLFNQHVVWREHVSHFLILHGDFFRUGLQJWR(1LVWKHFDOFXODWHGPLQLPXPZDOOWKLFNQHVVSOXVWKH
VSHFLILHGXQGHUZDOOWKLFNQHVVWROHUDQFH

)RUEHQGVDQGHOERZVWKHPLQLPXPZDOOWKLFNQHVVWRZLWKVWDQGWKHLQWHUQDOSUHVVXUHLVFDOFXODWHGDFFRUGLQJ
WR

 $GGLWLRQDOGHVLJQUHTXLUHPHQWV

 )RUFHV
$SLSHOLQHVKDOOEHGHVLJQHGVRWKDWLWFDQZLWKVWDQGWKHHIIHFWVRIWKHSUHGLFWDEOHIRUFHVRQLWUHVXOWLQJIURP
± LQWHUQDOSUHVVXUH
± WKHDQFKRULQJRUEDFNILOOLQJRIWKHSLSHOLQHURDGDQGUDLOWUDIILFDQGORDGVQHFHVVDU\IRUWKHLQVWDOODWLRQDQG
SUHVVXUHWHVWLQJRIWKHSLSHOLQH
± WKHZHLJKWORDGLQJLPSRVHGGXULQJK\GURVWDWLFWHVWLQJ
± WKHDWWDFKPHQWRIEUDQFKFRQQHFWLRQV
± WKHDWWDFKPHQWRIQRQSUHVVXUHFRQWDLQLQJFRPSRQHQWV

‹%6,
3DJH
(1

± WKHDWWDFKPHQWRIQRQSUHVVXUHFRQWDLQLQJFRPSRQHQWV
± EXR\DQF\
± DQ\RWKHUEXULHGVWUXFWXUHVXFKDVDSLSHOLQHJDVPDLQRUVHUYLFHSLSHZRUN
± HQYLURQPHQWDOORDGVVXFKDVIORRGLQJLFHVQRZZLQG
± VHWWOHPHQW
± PLQLQJVXEVLGHQFH
± IURVWKHDYH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± ODQGVOLGH
± DUHDVZLWKKLJKVHLVPLFULVN
± DUHDVRIIXWXUHSODQQHGLQFUHDVHVLQVRLOFRYHUORFDOHPEDQNPHQWVHWF
± VRLOHURVLRQ
± DERYHJURXQGVHFWLRQV
7KHGHVLJQHUVKDOOWDNHLQWRDFFRXQWDOORWKHUFLUFXPVWDQFHVWKDWFDQUHTXLUHFDOFXODWLRQVWREHFDUULHGRXWIRUWKH
SLSHOLQHVHFWLRQRUWKHVWDWLRQSLSHZRUNVXFKDV
± KLJKHUSLSHWHPSHUDWXUHDQGRUODUJHWHPSHUDWXUHGLIIHUHQFHVLQUHODWLRQWRVSHFLDOSLSHFRQILJXUDWLRQV
± DQ\FLUFXPVWDQFHVWKDWFDQOHDGWRH[FHVVLYHFRQVWUXFWLRQVHWWOHPHQWGLIIHUHQFHVDVDUHVXOWRIWKH
FRQVWUXFWLRQWHFKQLTXHVHPSOR\HG
± DERYHJURXQGSLSHOLQHVHFWLRQVORFDOO\VXSSRUWHG
7KHFDOFXODWLRQVFRPSULVHRIDQDQDO\VLVRIWKHORDGVDQGGLVSODFHPHQWVDQGDQDQDO\VLVRIWKHVWUHVVHVDQG
VWUDLQVZKLFKFDQRFFXU7KHGHJUHHWRZKLFKHDFKRIWKHVHVWDJHVLVLQYROYHGLQWKHDQDO\VLVGHSHQGVRQWKH
FRPSOH[LW\RIWKHGHVLJQDQGWKHSK\VLFDOSDUDPHWHUVRIWKHSLSHOLQHVHFWLRQ

:KHUHWKHDVVHVVPHQWVKRZVWKDWDGGLWLRQDOGHVLJQUHTXLUHPHQWVVKRXOGEHLPSRVHGRQWKHVHFWLRQXQGHU
FRQVLGHUDWLRQDQHVWDEOLVKHGPHWKRGRIDQDO\VLVVKDOOEHXVHGWRGHWHUPLQHWKHVWUHVVHVDQGVWUDLQVDQGHIIHFWVRI
DOOORDGLQJVRQWKHSLSHOLQHVHFWLRQ

 6RLOHQJLQHHULQJGDWDUHTXLUHG

,IVXIILFLHQWLQIRUPDWLRQLVDYDLODEOHRQWKHQDWXUHRIWKHVRLOWKHDQDO\VLVIRUFHUWDLQSLSHOLQHVHFWLRQVFDQEHEDVHG
RQW\SLFDOVRLOSDUDPHWHUVZKHUHQHFHVVDU\LQFRPELQDWLRQZLWKDGGLWLRQDOVRLOPHFKDQLFDOLQYHVWLJDWLRQVXFKDV
VRLOVDPSOLQJRUFRQHSHQHWUDWLRQWHVWV

,QWKHFDVHRIVSHFLDOVWUXFWXUHVDQGRUZLGHO\YDU\LQJVRLOSURSHUWLHVRULQVLWXDWLRQVZKHUHVXEVWDQWLDOSHUPDQHQW
VRLOGLVSODFHPHQWVDUHH[SHFWHGWKHVHSDUDPHWHUVVKDOOEHHVWDEOLVKHGRQWKHEDVLVRIDVRLODQDO\VLV

 6WUXFWXUDOPRGHOVIRUSLSHOLQHVHFWLRQV

7KUHHGLIIHUHQWPRGHOVFDQEHXVHGWRDQDO\]HERWKVXSSRUWHG DERYHJURXQG SLSHOLQHVHFWLRQVVXEMHFWHGWR


W\SLFDORSHUDWLQJORDGVDQGEXULHGSLSHOLQHVHFWLRQVLQWKHFRQWH[WRISLSHVRLOLQWHUDFWLRQSUREOHPV
D  SLSHFRQVLGHUHGDVDULQJ7KLVPRGHOLVXVHGIRUFDOFXODWLQJWKHFLUFXPIHUHQWLDOVWUHVVHVDQGVWUDLQVLQ
WKHFURVVVHFWLRQRIWKHSLSH
E  SLSHFRQVLGHUHGDVDEHDP7KLVPRGHOLVXVHGIRUFDOFXODWLQJWKHORQJLWXGLQDOVWUHVVHVDQGVWUDLQVLQ
WKHSLSHOLQHVHFWLRQV8VLQJWKLVPRGHOWKHUHDFWLRQIRUFHVSHUSHQGLFXODUWRWKHSLSHFDQEHXVHGLQWKH
FDOFXODWLRQRIVWUHVVDQGVWUDLQLQWKHFURVVVHFWLRQRIWKHSLSH
F  SLSHFRQVLGHUHGDVDVKHOO3LSHEHKDYLRXUFDQEHPRGHOOHGSUHFLVHO\XVLQJVKHOOHOHPHQWVLQILQLWH
HOHPHQWDQDO\VLV7KLVPRGHOFDQEHXVHGWRVROYHSUREOHPVRIVWUHVVFRQFHQWUDWLRQWRFRPSRQHQWVVXFK
DVWHHVEHQGVQR]]OHVVXSSRUWVRUORFDOEHKDYLRXURIWKHSLSHZDOO ZULQNOLQJRYDOLW\HWF
)RUEXULHGSLSHOLQHVHFWLRQVWKHSLSHVRLOLQWHUDFWLRQFDQEHPRGHOOHGHLWKHUE\ILQLWHHOHPHQWVRUE\
VLPSOLILHGPHWKRGV

‹%6,
3DJH
(1

 $QDO\VLVRIVWUHVVDQGVWUDLQ

 (ODVWLFDQGH[WHQGHGHODVWLFGHVLJQ

 *HQHUDO

7KHFDOFXODWLRQPHWKRGLVEDVHGRQGHWHUPLQDWLRQRIVWUHVVHVFDXVHGE\ORDGVGXULQJWKHFRQVWUXFWLRQDQG
RSHUDWLRQSKDVHV7KHVWUHVVHVDUHFRPELQHGWRUHVXOWDQWVWUHVVHV Y 1RUHVXOWDQWVWUHVVVKDOOH[FHHGWKH
UHOHYDQWDOORZDEOHVWUHVV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

5HVXOWDQWVWUHVV Y

7KHVWDWHRIVWUHVVDWDQ\SRLQWLVFRPSOHWHO\GHVFULEHGE\WKHQRUPDOVWUHVVHV [ \DQG ]DQGWKHVKHDU


VWUHVVHVt[t\DQGt]LQDWULD[LDOV\VWHPZLWKPXWXDOO\SHUSHQGLFXODUD[HV[\DQG]RUE\WKHSULQFLSDOVWUHVVHV
 DQG DQGWKHLUGLUHFWLRQV

7KHUHVXOWDQWVWUHVVLVDSDUDPHWHUZKLFKLVFRQVLGHUHGWREHFKDUDFWHULVWLFRIWKHVWDWHRIVWUHVVDWDSRLQW7KH
UHVXOWDQWVWUHVVFDQEHFDOFXODWHGHLWKHUE\WKHVKHDUVWUHVVK\SRWKHVLVRUWKH\LHOGFULWHULRQ

$FFRUGLQJWRWKHVKHDUVWUHVVK\SRWKHVLVWKLVLV Y  PD[ PLQ


ZKHUH
PD[ LVWKHPD[LPXPSULQFLSDOVWUHVVLQRQHRIWKHWKUHHGLUHFWLRQV
PLQ LVWKHPLQLPXPSULQFLSDOVWUHVVLQRQHRIWKHRWKHUWZRGLUHFWLRQV

$FFRUGLQJWRWKH9RQ0LVHV+XEHU+HQFN\\LHOGFULWHULRQWKHUHVXOWDQWVWUHVVLVJLYHQE\

     
s Y  s [s \s ]s [ s \s ] s [s \ s ] t [t \t ]

,QDELD[LDOV\VWHP

  
s Y  s [s \s [ s \ t

+HUHHLWKHU ] RUPD\EHGLVUHJDUGHGLQWHUPVRIDEVROXWHYDOXHFRPSDUHGZLWK [DQG \

7KLVDOVRDSSOLHVWRWKHWZRVKHDUVWUHVVHVFRPSDUHGZLWKWKHVKHDUVWUHVVXQGHUFRQVLGHUDWLRQ

$ELD[LDOVWDWHRIVWUHVVFDQEHDVVXPHGLQSLSHOLQHVHFWLRQVZKLFKFRQWDLQQRDQFLOODULHVEUDQFKHVHWF

 $OORZDEOHVWUHVV

8QGHUORDGLQJFRQGLWLRQVZKHUHDOOVWUHVVHVDUHFRQVLGHUHGDVSULPDU\VWUHVVHVDQGWKHFDOFXODWLRQLVFDUULHGRXW
ZLWKFKDUDFWHULVWLFYDOXHVIRUWKHORDGVWKHPD[LPXPUHVXOWDQWVWUHVVVKDOOQRWH[FHHGWKHDOORZDEOHVWUHVV

7KHDOORZDEOHVWUHVVLV5W
7HPSHUDWXUHOHVVWKDQRUHTXDOWR•& 5W  5W
7HPSHUDWXUHRYHU•& WKHYDOXHRIWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKKDVWREHFRUUHFWHG
IRUWKHWHPSHUDWXUH

$KLJKHUDOORZDEOHVWUHVVFDQEHXVHGZKHUHWKHVWUHVVHVDUHGLYLGHGLQWRSULPDU\ HJGLUHFWHTXLOLEULXP DQG


VHFRQGDU\ HJGLVSODFHPHQWFRQWUROOHG 

$QH[DPSOHRIWKLVPHWKRG ³H[WHQGHGHODVWLFGHVLJQ´ LVJLYHQLQ$QQH[*EXWRWKHUHVWDEOLVKHGPHWKRGVPD\


EHXVHG

‹%6,
3DJH
(1

 /LPLWVWDWHGHVLJQ

 *HQHUDO

7KHFDOFXODWLRQSURFHGXUHLVEDVHGRQWKHPHWKRGRI SDUWLDO ORDGIDFWRUVDQGFDOFXODWLRQORDGV7KHFDOFXODWLRQ


ORDGVDUHREWDLQHGE\PXOWLSO\LQJWKHUHOHYDQW FKDUDFWHULVWLF ORDGVDULVLQJGXULQJWKHFRQVWUXFWLRQDQGRSHUDWLQJ
SKDVHVE\WKHUHOHYDQWORDGIDFWRU

7KHORDGIDFWRUWDNHVDFFRXQWRIXQFHUWDLQW\DVWRWKHPDJQLWXGHRIWKHORDGVWKHVWUHQJWKRIWKHPDWHULDODQGWKH
FRQVWUXFWLRQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHHIIHFWRIWKHFDOFXODWLRQORDGVVKDOOQRWH[FHHGWKHOLPLWYDOXHDVVRFLDWHGZLWKWKHUHOHYDQWOLPLWVWDWH

,QWKHOLPLWVWDWHGHVLJQDFOHDUGLVWLQFWLRQVKDOOEHPDGHEHWZHHQORDGFRQWUROOHGVWUDLQVDQGGHIRUPDWLRQ
FRQWUROOHGVWUDLQV

 5HOHYDQWOLPLWVWDWHV

7KHUHOHYDQWOLPLWVWDWHVDUH

D VWUHVV7KHOLPLWVWDWHLQZKLFKWKHOLPLWVWUHVVLVH[FHHGHG

E VWUDLQ7KHOLPLWVWDWHLQZKLFKWKHOLPLWVWUDLQLVH[FHHGHG

,QHYDOXDWLQJWKLVOLPLWVWUDLQWKHSUHVHQFHRILPSHUIHFWLRQVLQWKHSLSHPDWHULDODQGWKHMRLQWVVKDOOEH
WDNHQLQWRDFFRXQW

F DOWHUQDWLQJ\LHOG7KHOLPLWVWDWHLQZKLFKWKHYDULDWLRQVLQWKHVWUDLQVGXHWRF\FOLFORDGVDUHVRJUHDW
WKDWSODVWLFGHIRUPDWLRQRFFXUVRQHDFKORDGUHYHUVDO SODVWLFIDWLJXH 

G IDWLJXH7KHOLPLWVWDWHIRUIDLOXUHGXHWRF\FOLFORDGLQJRYHUWLPH

H UHVRQDQFHDQGYRUWH[VKHGGLQJ7KHOLPLWVWDWHIRUH[FHVVLYHH[FXUVLRQVE\WKHSLSHOLQHRULWV
FRPSRQHQWSDUWV

7KHVHH[FXUVLRQVDULVHZKHQWKHIUHTXHQF\RIH[FLWDWLRQFRLQFLGHVZLWKWKHSLSHOLQH
VQDWXUDOIUHTXHQF\

)RUSLSHOLQHVHFWLRQVZKLFKDUHORFDOO\XQVXSSRUWHGE\VRLODQGH[SRVHGWRZDYHVDQGFXUUHQWVDVWXG\
VKRXOGEHPDGHRIWKHSRVVLELOLWLHVRIYLEUDWLRQGXHWRYRUWH[VKHGGLQJDQGRWKHULQVWDELOLW\SKHQRPHQD

I GHIRUPDWLRQ7KHOLPLWVWDWHIRUH[FHVVLYHGHIRUPDWLRQWDNLQJWKHIRUPIRUH[DPSOHRIH[FHVVLYHRYDOLW\
ORFDOEXFNOLQJLPSORVLRQRURYHUDOOIOH[XUDOEXFNOLQJRIWKHSLSHOLQH

*HQHUDOO\VSHDNLQJH[FHVVLYHGHIRUPDWLRQVRIWKLVNLQGZLOORFFXULQWKHSODVWLFUDQJHDQGWKHUHIRUH
FRQVLVWFKLHIO\RISODVWLFGHIRUPDWLRQV6LWXDWLRQVFDQDULVHKRZHYHULQZKLFKH[FHVVLYHHODVWLF
GHIRUPDWLRQVRFFXUWKDWKDYHDGHOHWHULRXVHIIHFWRQVDIHW\

(;$03/( ,QFOXGHVHL]XUHRIFORVHWROHUDQFHPRYLQJSDUWV YDOYHV DQGGLVWRUWLRQRIIODQJHVZKLFKLPSDLUV


WKHLULQWHJULW\

J 'LVSODFHPHQWODWHUDOVWDELOLW\

‹%6,
3DJH
(1

 'HVLJQUHSRUW

2QFRPSOHWLRQRIWKHGHVLJQDFRPSUHKHQVLYHGHVLJQUHSRUWVKDOOEHSURGXFHGFRQWDLQLQJWKH
IROORZLQJLQIRUPDWLRQ

D  DGHVFULSWLRQRIWKHSLSHOLQH
 JHQHUDOGDWDUHODWLQJWRWKHSURMHFWGHVFULSWLRQRIWKHSUHVVXUHFRQWDLQPHQWV\VWHPGHPDUFDWLRQ
RIWKHERXQGDULHVRIWKHWUDQVPLVVLRQSLSHOLQHVDIHW\GHYLFHV
  GDWDUHODWLQJWRWKHJDVDQGGHVLJQFRQGLWLRQVWKHGHVLJQSUHVVXUHDQGGHVLJQWHPSHUDWXUHWKH
YDOXHVDWFULWLFDOGHVLJQFRQGLWLRQVRI
± PDVVIORZUDWH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± GHQVLW\
± YLVFRVLW\ G\QDPLF 
E GUDZLQJV
  JHRJUDSKLFDOPDSVZLWKZKHUHDSSOLFDEOHDQLQGLFDWLRQRIWKHDUHDFRYHUHGE\WKHLQGLYLGXDOURXWH
PDSV
  URXWHPDSVRUVLPLODUGUDZLQJV
  GHWDLODQGVWDQGDUGPDSVLQGLFDWLQJWKHURXWHPDSVWRZKLFKWKH\DSSO\DQGSURYLGLQJDOO
LQIRUPDWLRQQHHGHGIRUHYDOXDWLRQRIWKHGHVLJQDQGFRQVWUXFWLRQ

F GDWDRISLSHOLQHFRPSRQHQWVDQGVWUXFWXUHV
  RXWVLGHRULQVLGHGLDPHWHU V 
  ZDOOWKLFNQHVV HV 
  ZDOOWKLFNQHVVWROHUDQFHV
  UHOHYDQWGDWDRQILWWLQJVLQFOXGLQJEHQGUDGLLRURWKHULQIRUPDWLRQUHODWLQJWRWKHSLSHOLQHHOHPHQWV
(;$03/( 5HGXFHUVWHHV
  GDWDRQDEXWWLQJVWUXFWXUHVDQGVXSSRUWVZKLFKDIIHFWWKHIRUFHVDQGPRPHQWVDFWLQJRQWKHFDUULHU
SLSHZRUN
  VWHHOJUDGHDQGVSHFLILFDWLRQ
  WKLFNQHVVDQGW\SHRIFRDWLQJ
  WKLFNQHVVDQGGHQVLW\RIZHLJKWFRDWLQJLIUHTXLUHG

G FRQVWUXFWLRQLQIRUPDWLRQLIUHTXLUHG
  HODVWLFEHQGLQJUDGLLWREHDSSOLHGWRWKHSLSHOLQHVHFWLRQERWKSHUPDQHQWDQGWHPSRUDU\
  WHVWSUHVVXUHLQFOXGLQJWKHQDWXUHDQGZHLJKWRIWKHWHVWPHGLXP
  LQVWDOODWLRQWHPSHUDWXUH
  VSHFLILFDWLRQRISURFHGXUHVWREHHPSOR\HGLQWKHLQVWDOODWLRQRIWKHSLSHOLQHVHFWLRQVWRJHWKHUZLWK
UHOHYDQWGDWDGHVLJQGHWDLOVDQGFRQVWUXFWLRQVSHFLILFDWLRQV
(;$03/(

± ,QVWDOODWLRQVSHFLILFDWLRQVIRUSLSHOLQHVHFWLRQVRSHQWUHQFK GU\ZHW MDFNLQJERULQJKRUL]RQWDO


GLUHFWLRQDOGULOOLQJWXQQHOOLQJ
± GDWDGHVLJQGHWDLOVDQGFRQVWUXFWLRQVSHFLILFDWLRQVSUHSDUDWLRQRIWKHWUHQFKERWWRPPHWKRGRI
EDFNILOOLQJDQGFRPSDFWLQJWKHWUHQFK

  ODQGPDQDJHPHQWDQGVRLOHQJLQHHULQJGDWD
(;$03/(

± 6RLOKDQGOLQJZHOOSRLQWGUDLQDJHVXUIDFHUHLQVWDWHPHQW

‹%6,
3DJH
(1

 /DQGPDQDJHPHQWDQGJHRWHFKQLFDOVWXGLHV

7KHSXUSRVHRIWKHODQGPDQDJHPHQWVWXG\LVWRJDWKHUGDWDQHHGHGIRUUHSRUWLQJRQODQGDQGZDWHUPDQDJHPHQW
DQGDJULFXOWXUDOKRUWLFXOWXUDODVSHFWVRIWKHSLSHOLQHURXWH

7KHVHGDWDDUHXVHGWRSURYLGHDSSURSULDWHVXSSRUWLQODQGPDQDJHPHQWDQGDJULFXOWXUDOKRUWLFXOWXUDOPDWWHUV
UHODWLQJWRWKHFRQVWUXFWLRQRIWKHSLSHOLQHDQGWROLPLWGDPDJH

7KHSXUSRVHRIWKHJHRWHFKQLFDOVWXG\LVWRJDWKHUGDWDIRUDUHSRUWRQJHRK\GURORJLFDOZDWHUPDQDJHPHQWDQG
JHRPHFKDQLFDODVSHFWVUHODWLQJWRWKHSLSHOLQHURXWH 6HHDOVR
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

 'HSWKRIFRYHU

%XULHGSLSHZRUNDQGFDVLQJVVKDOOLQJHQHUDOKDYHDPLQLPXPGHSWKRIFRYHURIP$UHGXFHGGHSWKRIFRYHU
PD\EHDSSOLHG([DPSOHVRIFDVHVRIUHGXFHGGHSWKDUH
± URFN\WHUUDLQ
± ZKHUHWKHSLSHFURVVHVGLWFKHVRUZDWHUFRXUVHV

127( $SSURSULDWHSURWHFWLYHPHDVXUHVFDQEHUHTXLUHG

$QLQFUHDVHGGHSWKRIFRYHUVKDOOEHDSSOLHGLQWKHIROORZLQJFDVHV
± VLWXDWLRQVZKHUHIURVWKHDYHFDQRFFXU
± DUHDVZKHUHDJULFXOWXUDORUKRUWLFXOWXUDOSUDFWLFHVUHTXLUHDJUHDWHUGHSWK
± DUHDVZKLFKFDQEHVXEMHFWWRHURVLRQ
± ZDWHUZD\V7KHORZHVWH[SHFWHGEHGSURILOHRIWKHFURVVLQJVKRXOGEHGHWHUPLQHG,IWKHZDWHUZD\LV
QDYLJDEOHFRQVLGHUDWLRQVKDOOEHJLYHQWRSURWHFWLRQRIWKHSLSHOLQHDJDLQVWGDPDJHIURPVKLSV
DQFKRUV

 &DVLQJSLSHV

7KHXVHRIFDVHGFURVVLQJVVKRXOGEHPLQLPL]HGDVWKH\FDQFDXVHDGYHUVHHIIHFWVRQFDWKRGLFSURWHFWLRQ
V\VWHPV

:KHQFDVLQJVDUHXVHGWKH\VKDOOEHGHVLJQHGVXFKWKDW
± WKH\DUHFDSDEOHRIZLWKVWDQGLQJDOOH[WHUQDOORDGV
± WKHFDUULHUSLSHLVHDVLO\LQVWDOOHG
± FDWKRGLFSURWHFWLRQRIWKHFDUULHUSLSHFDQEHSURYLGHGLIQHFHVVDU\
± WKH\FDQEHVHDOHGHIIHFWLYHO\RUFDQEHILOOHGZLWKDVXLWDEOHPDWHULDOWRPLQLPL]HZDWHUFLUFXODWLRQDQG
WKXVUHGXFHWKHR[\JHQVXSSO\WRDPLQLPXP
± WKHFDUULHUSLSHLVSURYLGHGZLWKDQDGHTXDWHQXPEHURIVXLWDEOHVXSSRUWVDWUHJXODULQWHUYDOVDQG
SURYLVLRQLVPDGHHVSHFLDOO\DWWKHH[WUHPLWLHVRIWKHFDVLQJWRDYRLGWKHSRVVLELOLW\RIFRQWDFWEHWZHHQ
WKHFDUULHUSLSHDQGWKHFDVLQJ
± WKHVXSSRUWULQJVDUHVSDFHGDQGFDOFXODWHGRQWKHEDVLVRIWKHZHLJKWRIWKHSLSHILOOHGZLWKZDWHUDQG
DGGLWLRQDOFURVVVHFWLRQDOIRUFHVFDXVHGE\FRQVWUXFWLRQVHWWOHPHQWDWWKHH[WUHPLWLHVZKLFKPDUND
WUDQVLWLRQEHWZHHQWZRPHWKRGVRILQVWDOODWLRQ

 6WDWLRQGHVLJQ

 /D\RXW

7KHSRLQWRIGHPDUFDWLRQEHWZHHQWKHSLSHOLQHVHFWLRQDQGWKHVWDWLRQVKRXOGEHLPPHGLDWHO\XSVWUHDPRIWKHILUVW
LQOHWYDOYHDQGLPPHGLDWHO\GRZQVWUHDPRIWKHODVWRXWOHWYDOYH$OWHUQDWLYHO\WKHVWDWLRQIHQFHRUWKHLVRODWLQJ
YDOYHVFDQEHWDNHQDVWKHSRLQWRIGHPDUFDWLRQ

7KHUHTXLUHPHQWVDSSOLFDEOHWRWKHOD\RXWRIWKHVWDWLRQGHSHQGRQWKHVXUURXQGLQJDUHDDQGWKHW\SHRIVWDWLRQ

‹%6,
3DJH
(1

+RZHYHUHDFKVWDWLRQVKDOOEHGHVLJQHGVXFKWKDW
± WKHVWDWLRQRUSDUWVRIWKHVWDWLRQFDQEHWDNHQRXWRIVHUYLFHE\RSHUDWLQJDQXPEHURIYDOYHV7KLVLVQRW
UHTXLUHGIRUYDOYHVWDWLRQV
± HIILFLHQWORQJWHUPRSHUDWLRQLVJXDUDQWHHGXQGHUDOOZHDWKHUFRQGLWLRQV
± WKHVWDWLRQVXIIHUVQRDGYHUVHHIIHFWVGXHWRVXEVLGHQFHVHWWOHPHQWFRUURVLRQRUDQ\RWKHUFDXVH
± PDLQWHQDQFHFDQEHFDUULHGRXWZLWKRXWLQWHUUXSWLQJWKHJDVIORZ
± XQDXWKRUL]HGRSHUDWLRQRIFRPSRQHQWVLVSUHYHQWHG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

:LWKLQVWDWLRQVFHUWDLQUHTXLUHPHQWVVKDOOEHLPSRVHGZLWKUHVSHFWWRWKHPLQLPXPVSDFLQJEHWZHHQFRPSRQHQWV
IRUH[DPSOHWRIDFLOLWDWHPDLQWHQDQFHDQGILUHILJKWLQJ

,IFLUFXPVWDQFHVUHTXLUHVWDWLRQVVKDOOEHIHQFHGWRSUHYHQWXQDXWKRUL]HGHQWU\&RQVLGHUDWLRQVKDOOEHJLYHQWR
SURYLVLRQVWRIDFLOLWDWHWKHHYDFXDWLRQRISHUVRQQHOIURPWKHVWDWLRQLQFDVHRIHPHUJHQF\

'HSHQGLQJRQWKHVL]HRIWKHVWDWLRQJDWHVVKDOOEHGLPHQVLRQHGDQGFRQVWUXFWHGWRSHUPLWHDV\DFFHVVWR
ILUHILJKWLQJHTXLSPHQWDQGDPEXODQFHV

,IWKHVWDWLRQLVLQVWDOOHGLQDEXLOGLQJWKHEXLOGLQJVKDOOEHVXEMHFWWRWKHHYDFXDWLRQUHTXLUHPHQWV

7KHHOHFWULFDOLQVWDOODWLRQVKDOOEHLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKHUHOHYDQW(1VWDQGDUGV

7KHHOHFWULFOLJKWLQJV\VWHPZKHUHILWWHGVKDOOEHGHVLJQHGVRWKDWH[LWVDQGFULWLFDODUHDVLQVLGHDQGRXWVLGHWKH
VWDWLRQDUHFOHDUO\YLVLEOHDWQLJKWDQGLQIRJ

7KHFRQVWUXFWLRQRIHOHFWULFDOLQVWDOODWLRQVLQDUHDVZKHUHWKHUHDUHSRWHQWLDOJDVDWPRVSKHUHVVKDOOFRPSO\ZLWK
WKHUHOHYDQW(1VWDQGDUGV

&RQVLGHUDWLRQVKDOOEHJLYHQWRPHDVXUHVIRUWKHSURWHFWLRQDJDLQVWOLJKWQLQJVWULNHV7KHVHPHDVXUHVVKDOOVDWLVI\
UHOHYDQWVWDQGDUGV

)RUSUHVVXUHUHJXODWLQJV\VWHPVWKHVWDWLRQOD\RXWVKDOOEHLQDFFRUGDQFHZLWK(1DQGIRUFRPSUHVVRU
VWDWLRQVLQDFFRUGDQFHZLWK(1

 &RPSRQHQWV

(DFKLQGLYLGXDOFRPSRQHQWRIDVWDWLRQVKDOOEHFDSDEOHRISHUIRUPLQJWKHIXQFWLRQUHTXLUHGRILWDQGVKDOOVDWLVI\
WKHVWDQGDUGVWRZKLFKWKHFRPSRQHQWLQTXHVWLRQKDVEHHQGHVLJQHG

7KHVHLQFOXGHPHFKDQLFDOFRPSRQHQWV VHHH[DPSOH HOHFWULFDOFRPSRQHQWV VHHH[DPSOH DQGSLSHZRUN


DQGSLSHOLQHFRPSRQHQWV VHHH[DPSOH 7KHUHTXLUHPHQWVUHODWLQJWRIODQJHVJDVNHWVEROWVQXWVYDOYHVDQG
RWKHUILWWLQJVDUHVSHFLILHGLQDQGFODXVH

(;$03/( &RPSUHVVRUVDQGSXPSV

(;$03/( *HQHUDWRUVEDWWHULHV

(;$03/( )LWWLQJVIODQJHVJDVNHWVYDOYHV

7KHVSHFLILHGZDOOWKLFNQHVV7RISLSHZRUNVKDOOQRWEHOHVVWKDQWKHYDOXHVVWDWHGLQ7DEOHDQGVKDOOEH
VXIILFLHQWIRUWKHORDGVLPSRVHGLQFOXGLQJLQWHUQDOSUHVVXUHZLWKDGHVLJQIDFWRUIR”

7DEOH6PDOOHVWZDOOWKLFNQHVVWREHVSHFLILHG

' PP ”         !

7 PP          '

‹%6,
3DJH
(1

&RPSRQHQWVZLWKLQVWDWLRQVDUHJHQHUDOO\FRQQHFWHGE\SLSHZRUNLQFOXGLQJRLOJDVFRPSUHVVHGDLUDQGZDWHU
SLSLQJDQGLQVWUXPHQWDWLRQFRQWUROSRZHUJDVDQGVDPSOLQJSLSHZRUN7KLVSLSHZRUNDQGWKHDVVRFLDWHGYDOYHV
IODQJHVUHGXFHUVEHQGVDQGRWKHUFRPSRQHQWVVKDOOEHPDGHRIVXLWDEOHPDWHULDODQGVKDOOEHFDSDEOHRI
ZLWKVWDQGLQJWKHPD[LPXPDQGPLQLPXPSUHVVXUHVDQGWHPSHUDWXUHV

7KHLQVWDOODWLRQDVDZKROHVKDOOVDWLVI\VDIHW\DQGUHOLDELOLW\UHTXLUHPHQWVIRUWKHVWDWLRQLQTXHVWLRQ

 ,QWHUDFWLRQZLWKRQODQGSLSHOLQHVHFWLRQ

,QWKHGHVLJQRIWKHFRQQHFWLRQVEHWZHHQWKHRQODQGVHFWLRQRIWKHSLSHOLQHDQGWKHVWDWLRQGXHDFFRXQWVKDOOEH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

WDNHQRIWKHLULQWHUDFWLRQ

$QH[SDQVLRQFDOFXODWLRQLVUHTXLUHGIRURXWOHWOLQHVIURPFRPSUHVVRUVWDWLRQVODLGLQVRIWSHDWRUFOD\VRLOV

'XHDFFRXQWVKDOOEHWDNHQRISXOVDWLRQV

(;$03/( )ORZLQGXFHGSXOVDWLRQV

([SDQVLRQDQGFRQWUDFWLRQRIWKHSLSHOLQHGXHWRWHPSHUDWXUHDQGSUHVVXUHFKDQJHVVKDOOEHWDNHQLQWRDFFRXQWLQ
WKHGHVLJQRIWKHVWDWLRQ,IQHFHVVDU\WKHSLSHOLQHVKDOOEHDQFKRUHGRUVXLWDEO\FRQILJXUHGVRWKDWWHPSHUDWXUH
DQGSUHVVXUHYDULDWLRQVGRQRWJLYHULVHWRVWUHVVHVZLWKLQFRPSRQHQWVZKLFKH[FHHGSHUPLWWHGOHYHOV

&RPSRQHQWVRIVWDWLRQVDQGDGMDFHQWSLSHOLQHVHFWLRQVVKDOOEHGHVLJQHGVXFKWKDWVWUHVVHVGXHWRQRQXQLIRUP
VHWWOHPHQWUHPDLQZLWKLQDFFHSWDEOHOLPLWV

 3LSHOLQHFRPSRQHQWV

 *HQHUDO

5XOHVUHODWLQJWRWKHGHVLJQRISLSHOLQHFRPSRQHQWVDUHVHWRXWLQWRLQFOXVLYH6SHFLILFDWLRQVIRUWKH
PDWHULDORIWKHSLSHOLQHFRPSRQHQWVDUHJLYHQLQFODXVH

&RPSRQHQWVVKDOOEHRIWKHVDPHRUHTXLYDOHQWPDWHULDODVUHTXLUHGIRUWKHSLSHV

 %HQGVDQGHOERZV

&KDQJHVLQSLSHOLQHGLUHFWLRQFDQEHDFKLHYHGHLWKHUE\EHQGLQJWKHSLSH VHH RUE\LQVWDOOLQJDIDFWRU\


PDGHEHQGRUHOERZLQWKHSLSHOLQH

,QWKHFDVHRIEHQGVZLWKDEHQGUDGLXVVPDOOHUWKDQ'WKHPD[LPXPKRRSVWUHVVUHTXLUHPHQWLQDFFRUGDQFH
ZLWKVKDOOEHFRPH

,QVLGHRIWKHEHQG

5 - '
s S ˆ I R 5 W  (q )
5 - '

2XWVLGHRIWKHEHQG

5 + '
s S ˆ I R 5 W  (q )
5 + '

‹%6,
3DJH
(1

ZKHUH

5 LVWKHEHQGUDGLXVDORQJWKHFHQWUHOLQHRIEHQGLQPLOOLPHWUHV PP 

' LVWKHRXWVLGHGLDPHWHULQPLOOLPHWUHV PP 

S LVWKHKRRSVWUHVVLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  D

5W LVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKDWWKHGHVLJQWHPSHUDWXUHLQQHZWRQVSHUVTXDUH
PLOOLPHWUH 1PP 
7HPSHUDWXUHOHVVWKDQRUHTXDOWR•& 5W  5W
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7HPSHUDWXUHRYHU•& WKHYDOXHRIWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWK
KDVWREHFRUUHFWHGIRUWKHWHPSHUDWXUH

5W LVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKDWDPELHQWWHPSHUDWXUHLQQHZWRQVSHUVTXDUH
PLOOLPHWUH 1PP  UHI(1 

IR LVWKHGHVLJQIDFWRU
D
LQWKHFDOFXODWLRQRIWKHKRRSVWUHVVWKHPLQLPXPZDOOWKLFNQHVVDIWHUEHQGLQJVKDOOEH
FRQVLGHUHG

 7HHV

7HHVVKDOOKDYHVXIILFLHQWVWUHQJWKDJDLQVWLQWHUQDOSUHVVXUH$QH[DPSOHRIDZDOOWKLFNQHVVFDOFXODWLRQPHWKRGLV
GHVFULEHGLQ$QQH[/(TXLYDOHQWFDOFXODWLRQPHWKRGVPD\EHXVHG

 )ODQJHV

)ODQJHVVKDOOEHGHVLJQHGWRDFFRPPRGDWHWKHRSHUDWLQJDQGFOLPDWLFFRQGLWLRQVDQGWKHDVVRFLDWHGSHUPLVVLEOH
RSHUDWLQJSUHVVXUHV7KHGLPHQVLRQVDQGGULOOLQJSDWWHUQIRUDOOIODQJHVVKDOOVDWLVI\WKHUHTXLUHPHQWVRIWKH
DSSOLFDEOHVWDQGDUGV

 &DSV

&DSVVKDOOKDYHVXIILFLHQWVWUHQJWKDJDLQVWLQWHUQDOSUHVVXUH$QH[DPSOHRIDZDOOWKLFNQHVVFDOFXODWLRQPHWKRGLV
GHVFULEHGLQ$QQH[0(TXLYDOHQWFDOFXODWLRQPHWKRGVPD\EHXVHG

 %ROWVDQGQXWV

%ROWVDQGQXWVVKDOOEHGHVLJQHGLQDFFRUGDQFHZLWKWKHUHOHYDQWVWDQGDUG1XWVVKDOOEHWLJKWHQHGRQWREROWVRU
VWXGVVXIILFLHQWO\IRUWKHWKUHDGWRSURMHFWDERYHWKHQXW

$WSRLQWVZKHUHYLEUDWLRQFDQRFFXUWKHQXWVVKDOOEHHIIHFWLYHO\VHFXUHG

 *DVNHWV

*DVNHWVVKDOOEHPDGHRIDPDWHULDOZKLFKLVFRPSDWLEOHZLWKWKHJDVFRQYH\HGE\WKHSLSHOLQHDQGVKDOOEH
FDSDEOHRIZLWKVWDQGLQJWKHRSHUDWLQJWHPSHUDWXUHDQGSUHVVXUH*DVNHWVVKDOOEHGHVLJQHGLQFRQMXQFWLRQZLWK
WKHGHVLJQRIWKHIODQJHDQGLQDFFRUGDQFHZLWKWKHUHOHYDQWSDUWRISU(1*DVNHWVFRQWDLQLQJDVEHVWRV
VKDOOQRWEHXVHG

 2WKHUILWWLQJV

2WKHUILWWLQJVVKDOOEHGHVLJQHGLQDFFRUGDQFHZLWKWKHUHOHYDQWVWDQGDUG7KHOHYHORIVWUHVVDWILWWLQJVVKDOOEH
ORZHUWKDQRUHTXDOWRWKDWRIWKHDGMDFHQWSLSHVDWWKHVDPHSUHVVXUHDQGWHPSHUDWXUH

(;$03/( 2WKHUILWWLQJVFDQEHUHGXFHUVLQVXODWLQJMRLQWV

,QVXODWLQJFRXSOLQJVDUHFRQVLGHUHGSUHIHUDEOHWRLQVXODWLQJIODQJHV

‹%6,
3DJH
(1

 3LJJLQJVXLWDELOLW\

$SLSHOLQHVKRXOGEHGHVLJQHGWRDOORZIRULQLWLDODQGSHULRGLFSLJJLQJ&RQVLGHUDWLRQVKDOOEHJLYHQWRWKH
PD[LPXPDOORZDEOHYDULDWLRQRIWKHSLSHLQVLGHGLDPHWHUSHUPLWWHGRYDOLW\PLQLPXPEHQGUDGLXVDQGWKHVHOHFWLRQ
RIEHQGVWHHV ZLWKJXLGHEDUVILWWHGLIQHFHVVDU\ DQGRWKHUFRPSRQHQWVWRSHUPLWVDIHDQGHIIHFWLYHSLJJLQJ3LJ
ODXQFKDQGUHFHLYLQJVWDWLRQVDUHUHTXLUHGDWLQWHUYDOVZLWKWKHDSSURSULDWHHTXLSPHQWIRUORDGLQJXQORDGLQJGXVW
FDWFKLQJDQGFROOHFWLRQRIZDWHURUFRQGHQVDWH VHHDOVR)LJXUH 

 $UUDQJHPHQWVIRUYHQWLQJ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7RSHUPLWGHSUHVVXUL]DWLRQRIDSLSHOLQHVHFWLRQIDFLOLWLHVVKDOOEHSURYLGHGIRUUHPRYLQJWKHJDVIURPWKHVHFWLRQ
$QH[DPSOHRIDSLSHOLQHZLWKWKHDSSURSULDWHIDFLOLWLHVLVJLYHQLQ)LJXUH

‹%6,
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

3DJH
(1

)LJXUH±([DPSOHRIDYDOYHVWDWLRQOD\RXWLQSLJJDEOHSLSHOLQH

‹%6,
3DJH
(1

 &RUURVLRQSURWHFWLRQ

*HQHUDO

$ERYHJURXQGVHFWLRQVRISLSHOLQHVVKDOOEHSURWHFWHGDJDLQVWDWPRVSKHULFFRUURVLRQE\PHDQVRIDVXLWDEOH
FRDWLQJV\VWHP

%XULHGRUVXEPHUJHGSLSHOLQHVHFWLRQVVKDOOEHSURWHFWHGE\PHDQVRIDVXLWDEOHH[WHUQDOFRDWLQJDQGDQHIIHFWLYH
FDWKRGLFSURWHFWLRQV\VWHP,IFDWKRGLFSURWHFWLRQZLOOQRWEHHIIHFWLYHRQRULVQRWDSSOLFDEOHWRPLQRUSDUWVRIWKH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

SLSHOLQHVHFWLRQH[WUDFDUHVKDOOEHWDNHQWRH[FOXGHFRDWLQJGHIHFWVRQWKHVHSDUWV

&RQVLGHUDWLRQVKDOOEHJLYHQGXULQJWKHGHVLJQDQGFRQVWUXFWLRQRIWKHSLSHOLQHWRWKHUHOHYDQW(1VWDQGDUGVIRU
H[WHUQDOFRDWLQJVDQGFDWKRGLFSURWHFWLRQZKHQVHOHFWLQJDQDSSURSULDWHFRUURVLRQSURWHFWLRQV\VWHP:KHUHYHU
SRVVLEOHDOOFRPSRQHQWVRIWKHSLSHOLQHVKDOOEHIDFWRU\FRDWHGEHIRUHGHOLYHU\WRVLWH

 ([WHUQDOFRDWLQJ

 ([WHUQDOFRDWLQJIRUDERYHJURXQGSLSHOLQHVHFWLRQV

7KHH[WHUQDOFRDWLQJRIDERYHJURXQGSLSHOLQHVHFWLRQVDQGWKHPHWKRGRIDSSOLFDWLRQVKDOOEHVHOHFWHGLQ
DFFRUGDQFHZLWKWKHDSSURSULDWH(1VWDQGDUGV

 ([WHUQDOFRDWLQJIRUEXULHGSLSHOLQHVHFWLRQV

7KHH[WHUQDOFRDWLQJRIEXULHGSLSHOLQHVHFWLRQVDQGWKHPHWKRGRIDSSOLFDWLRQVKDOOEHVHOHFWHGLQDFFRUGDQFHZLWK
WKHDSSURSULDWH(1VWDQGDUGV

(;$03/( SU(1SU(1SU(1SU(1SU(1DQGSU(1

D  3URSHUWLHVDQGERQGLQJ
([WHUQDOFRDWLQJVIRUXQGHUJURXQGDSSOLFDWLRQVVKDOOKDYHJRRGPHFKDQLFDODQGHOHFWULFDOSURSHUWLHVLQ
UHODWLRQWRWKHHQYLURQPHQW IRUH[DPSOHW\SHRIVRLO DQGRSHUDWLQJFRQGLWLRQV7KHFRDWLQJVKDOOERQG
VWURQJO\WRWKHVWHHOVXUIDFHDQGVKDOOSRVVHVVDGHTXDWHUHVLVWDQFHWRGLVERQGLQJDGMDFHQWWRDUHDVRI
FRDWLQJGDPDJHDQGDGHTXDWHUHVLVWDQFHWRFDWKRGLFGLVERQGLQJ

E  6HOHFWLRQ
,QVHOHFWLQJWKHFRDWLQJV\VWHPDFFRXQWVKDOOEHWDNHQRIWKHOLNHO\PD[LPXPWHPSHUDWXUHRIWKHPHGLXP
WKHPLQLPXPFOLPDWLFWHPSHUDWXUHVDQGWKHPHWKRGRIFRQVWUXFWLRQ

F  3UHSDUDWLRQRIVWHHOVXUIDFHDQGDSSOLFDWLRQ
7KHVWHHOVXUIDFHVKDOOEHSUHSDUHGDQGWKHFRDWLQJDSSOLHGXQGHUFRQWUROOHGFRQGLWLRQVLQRUGHUWRHQVXUH
RSWLPXPUHVXOWV

G  ³7UHQFKOHVV´FURVVLQJV
5HVLVWDQFHWRPHFKDQLFDOGDPDJHDQGDEUDVLRQVKDOOEHWDNHQLQWRDFFRXQWZKHQVHOHFWLQJWKHFRDWLQJIRU
³WUHQFKOHVV´SLSHOLQHFURVVLQJVRIIHDWXUHV

(;$03/( &URVVLQJVRIURDGVDQGZDWHUZD\V

H  )LHOGDSSOLHGFRDWLQJ
7KHILHOGDSSOLHGFRDWLQJVKDOOJLYHDGXUDEOHERQGERWKZLWKWKHIDFWRU\DSSOLHGFRDWLQJZKHUHSUHVHQWDQG
WKHVWHHOVXUIDFH7KHDVSHFWVGHVFULEHGLQD WRG VKDOOEHFRQVLGHUHGUHJDUGLQJFKRLFHRIPDWHULDODQG
DSSOLFDWLRQPHWKRGWRJHWKHUZLWKWKHUHTXLUHPHQWVRIWKHDSSURSULDWH(1VWDQGDUGV

‹%6,
3DJH
(1

 &DWKRGLFSURWHFWLRQ

 %DVLFUHTXLUHPHQW

7KHSLSHOLQHVHFWLRQWREHFDWKRGLFDOO\SURWHFWHGVKDOOEHHOHFWULFDOO\FRQWLQXRXVDQGVKDOOKDYHDGHTXDWH
ORQJLWXGLQDOFRQGXFWLYLW\

&DWKRGLFSURWHFWLRQVKDOOEHE\PHDQVRIDQLPSUHVVHGFXUUHQWV\VWHPRUVDFULILFLDODQRGHV

 (OHFWULFDOLQWHUIHUHQFH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHSLSHZRUNVKDOOEHSURWHFWHGDJDLQVWHIIHFWVRIVWUD\FXUUHQWVE\DSSURSULDWHPHDVXUHV

(;$03/( 6WUD\FXUUHQWVFDXVHGE\UDLOZD\V

,QIOXHQFHVDVVRFLDWHGZLWKWKHSUR[LPLW\RIKLJKYROWDJHSRZHUWUDQVPLVVLRQFDEOHVVKDOOEHWDNHQLQWRDFFRXQW
EHFDXVHRIVDIHW\UHDVRQV

(;$03/( )RUWKHSURWHFWLRQRIWKHSLSHOLQHDQGWKHVDIHW\RILQGLYLGXDOV

 $GYHUVHHIIHFWVRQRWKHUEXULHGVWUXFWXUHV

7KHFDWKRGLFSURWHFWLRQV\VWHPVKDOOEHGHVLJQHGDQGWKHSLSHZRUNLQVWDOOHGLQVXFKDZD\DVWRUHGXFHDGYHUVH
HIIHFWVRQRWKHUEXULHGPHWDOVWUXFWXUHV

 ,QVXODWLRQMRLQWV

,QVXODWLRQMRLQWVVKRXOGEHLQVWDOOHGDWVXLWDEOHORFDWLRQVWRFRQILQHFDWKRGLFSURWHFWLRQWRWKHSLSHOLQHV\VWHP

 3XWWLQJLQWRRSHUDWLRQ

7KHFDWKRGLFSURWHFWLRQV\VWHPVKDOOEHEURXJKWLQWRRSHUDWLRQDVVRRQDVSRVVLEOHIROORZLQJSLSHOLQHFRQVWUXFWLRQ
DQGZKHUHGHOD\VDUHXQDYRLGDEOHWKHXVHRIWHPSRUDU\FDWKRGLFSURWHFWLRQV\VWHPVVXFKDVVDFULILFLDODQRGHV
VKRXOGEHFRQVLGHUHGSDUWLFXODUO\LQDUHDVZLWKFRUURVLYHJURXQGFRQGLWLRQV

 0DWHULDOV

 *HQHUDOUHTXLUHPHQWV

3LSHVDQGSLSHOLQHFRPSRQHQWVVKDOOFRQIRUPWRWKHUHOHYDQW(1VWDQGDUGV

,QWKHDEVHQFHRIVXFKVWDQGDUGVRUZKHUHVXFKVWDQGDUGVDUHLQFRPSOHWHWKHLUFKDUDFWHULVWLFVVKDOOEHVXEMHFWRI
DJUHHPHQWEHWZHHQSXUFKDVHUDQGPDQXIDFWXUHU

(;$03/( &KDUDFWHULVWLFVVXFKDVFKHPLFDODQGPHFKDQLFDOSURSHUWLHVRUGLPHQVLRQVRIWKHILQDOSURGXFWRU
PDQXIDFWXULQJRUWHVWSURFHGXUHV

 %DVHPDWHULDO

3LSHDQGSLSHOLQHFRPSRQHQWVVKDOOEHPDQXIDFWXUHGIURPIXOO\NLOOHGVWHHO

6WHHOPDGHE\WKH0DUWLQSURFHVVVKDOOQRWEHXVHGIRUSLSHV

‹%6,
3DJH
(1

 0DQXIDFWXULQJ

7KHPDQXIDFWXULQJSURFHGXUHVKDOOEHDSSURYHGE\WKHSXUFKDVHURUKLVUHSUHVHQWDWLYH

,IDQ\FKDQJHVDUHPDGHWRWKHDSSURYHGPDQXIDFWXULQJSURFHGXUHUHDSSURYDOVKDOOEHUHTXLUHG

 :HOGDELOLW\

 *HQHUDO
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

3LSHDQGRWKHUSLSHOLQHFRPSRQHQWVLQWHQGHGIRUZHOGLQJVKDOOEHFDSDEOHRIEHLQJZHOGHGUHOLDEO\XQGHUVLWH
FRQGLWLRQV

7KHPDQXIDFWXUHUVKDOOSURYLGHGDWDRQWKHZHOGDELOLW\RIWKHPDWHULDO7KHSXUFKDVHUPD\VSHFLI\DZHOGDELOLW\
WHVWLIKHVKHFRQVLGHUVWKHGDWDLQDGHTXDWH

 3LSH

7RPHHWWKHFRQGLWLRQVJLYHQLQWKHPD[LPXPFDUERQHTXLYDOHQW&(9PD[VKDOOEHLQDFFRUGDQFHZLWK
(1

 2WKHUSLSHOLQHFRPSRQHQWV

7RPHHWWKHFRQGLWLRQVJLYHQLQWKHPD[LPXPFDUERQHTXLYDOHQW&(9PD[VKDOOQRWH[FHHG

&(9PD[ IRUJUDGHVZLWKVSHFLILHGPLQLPXP\LHOGVWUHQJWKQRWH[FHHGLQJ1PP 

&(9PD[ IRUJUDGHVZLWKVSHFLILHGPLQLPXP\LHOGVWUHQJWKDERYH1PP

XQOHVVRWKHUZLVHDJUHHGEHWZHHQSXUFKDVHUDQGPDQXIDFWXUHU

0Q &U0R9 &X1L


&(9  &  
  

ZKHUHLVWKHSHUFHQWDJHE\ZHLJKWRIWKHODGOHFRQWHQWRI

& &DUERQ
0Q 0DQJDQHVH
&U &KURPLXP
0R 0RO\EGHQXP
9 9DQDGLXP
&X &RSSHU
1L 1LFNHO

)XUWKHUPRUHXQOHVVRWKHUZLVHDJUHHGEHWZHHQPDQXIDFWXUHUDQGSXUFKDVHUWKHFDUERQFRQWHQWVKDOOQRW
H[FHHG

7KHVXOIXUFRQWHQWVKDOOQRWH[FHHGDQGWKHSKRVSKRUXVFRQWHQWVKDOOQRWH[FHHG7KHVXPRI
VXOIXUDQGSKRVSKRUXVDVDWRWDORIWKHODGOHDQDO\VLVVKDOOEHVPDOOHUWKDQRUHTXDOWR

,ISLSHLVXVHGIRUPDQXIDFWXULQJSLSHOLQHFRPSRQHQWVWKHFKHPLFDOFRPSRVLWLRQRIWKHSLSHVKDOOFRPSO\ZLWKWKH
UHOHYDQW(1VWDQGDUGV

‹%6,
3DJH
(1

 0HFKDQLFDOSURSHUWLHV

 ,PSDFWHQHUJ\

3LSHVKDOODWOHDVWPHHWWKHUHTXLUHPHQWVIRULPSDFWUHVLVWDQFHJLYHQLQ(1)RURWKHUSLSHOLQH
FRPSRQHQWVDERYHQRPLQDOVL]H'1WKHIROORZLQJPLQLPXPLPSDFWHQHUJ\YDOXHVIRUIXOOVL]H&KDUS\9
VSHFLPHQVVKDOOEHREWDLQHGIRUILQLVKHGPDWHULDODQGSURGXFWLRQZHOGVDVIROORZV

± -RXOH DYHUDJH -RXOH LQGLYLGXDO


IRUEHQGVDQGILWWLQJVIURPVWHHOJUDGHVZLWKVSHFLILHGPLQLPXP\LHOGVWUHQJWKQRWH[FHHGLQJ
1PPDQGDOORWKHUFRPSRQHQWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

(;$03/( 9DOYHVIODQJHV

± -RXOH DYHUDJH -RXOH LQGLYLGXDO


IRUEHQGVDQGILWWLQJVIURPVWHHOJUDGHVZLWKVSHFLILHGPLQLPXP\LHOGVWUHQJWKDERYH1PP 

:KHUHIXOOVL]HVSHFLPHQVFDQQRWEHREWDLQHGWKHLPSDFWYDOXHVVKDOOEHDVVHVVHGLQDFFRUGDQFHZLWKWKH
IROORZLQJIRUPXOD

 ™  ™ .9S
.9  
6S

ZKHUH

.9 LVWKHLPSDFWHQHUJ\UHTXLUHPHQWIRUDIXOOVL]HVSHFLPHQLQMRXOH - 
.93 LVWKHPHDVXUHGLPSDFWHQHUJ\LQMRXOH - 
63 LVWKHWHVWSLHFHFURVVVHFWLRQPHDVXUHGXQGHUWKHQRWFKLQVTXDUHPLOOLPHWUHV PP  

6XEVL]HVSHFLPHQVVKDOOEHWDNHQZLWKDWKLFNQHVVJUHDWHUWKDQRUHTXDOWRPPZLWKRXWIODWWHQLQJ

 ,PSDFWWHVWWHPSHUDWXUH

7KHVWDQGDUGLPSDFWWHVWWHPSHUDWXUHIRUSLSHDQGSLSHOLQHFRPSRQHQWVLV•&:KHQUHTXLUHGE\WKHGHVLJQDQ
LPSDFWWHVWWHPSHUDWXUHEHORZ•&VKDOOEHDJUHHGEHWZHHQSXUFKDVHUDQGPDQXIDFWXUHU

 7HQVLOHSURSHUWLHV

3LSHVVKDOOPHHWWKHUHTXLUHPHQWVIRUWHQVLOHSURSHUWLHVJLYHQLQ(1

)RURWKHUSLSHOLQHFRPSRQHQWVRWKHUWKDQFDVWVWHHOWKHHORQJDWLRQDWUXSWXUHRIWKHSURSRUWLRQDOWHQVLOHVSHFLPHQ
LQDFFRUGDQFHZLWK(1VKDOOEHDWOHDVW)RUFDVWVWHHOFRPSRQHQWVWKHPLQLPXPHORQJDWLRQVKDOOEH
DWOHDVW

7KHUDWLREHWZHHQWKH\LHOGVWUHQJWKDQGWKHUXSWXUHVWUHQJWKVKDOOQRWH[FHHG

 +DUGQHVVRIZHOGV

7KHKDUGQHVVRISURGXFWLRQZHOGVLQSLSHOLQHFRPSRQHQWVVKDOOQRWH[FHHGSRLQWV9LFNHUVKDUGQHVV +9 DW
DQ\SRLQWLQFOXGLQJWKHKHDWDIIHFWHG]RQH +$= 

‹%6,
3DJH
(1

 ,QVSHFWLRQGRFXPHQWV

 0DQXIDFWXULQJXQGHUDFRPSUHKHQVLYHTXDOLW\V\VWHP

3LSHDQGRWKHUSLSHOLQHFRPSRQHQWVRIDOOVL]HVPDQXIDFWXUHGXQGHUDFRPSUHKHQVLYHTXDOLW\V\VWHPIRUH[DPSOH
(1,62DSSURYHGE\DQGVXEMHFWWRUHJXODUVXSHUYLVLRQE\FRPSHWHQWDXWKRULWLHVVKDOOEHVXSSOLHGZLWK
LQVSHFWLRQFHUWLILFDWH%LQDFFRUGDQFHZLWK(1XQOHVV$RU&RULVVSHFLILHGE\WKH
SXUFKDVHU

7KHPDQXIDFWXUHUVKDOORQUHTXHVWSUHVHQWGRFXPHQWDWLRQWKDWGHPRQVWUDWHVWRWKHVDWLVIDFWLRQRIWKHSXUFKDVHU
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

WKDWDQDSSURYHGTXDOLW\V\VWHPLVLQXVH

 0DQXIDFWXULQJQRWXQGHUDFRPSUHKHQVLYHTXDOLW\V\VWHP

3LSHDQGRWKHUSLSHOLQHFRPSRQHQWVJUHDWHUWKDQ'1RUPDGHIURPJUDGHVZLWKVSHFLILHGPLQLPXP\LHOG
VWUHQJWKJUHDWHUWKDQ1PPZKLFKDUHQRWPDQXIDFWXUHGLQDFFRUGDQFHZLWKVKDOOEHVXSSOLHGZLWKDQ
LQVSHFWLRQFHUWLILFDWH&LQDFFRUGDQFHZLWK(1XQOHVVLVVSHFLILHGE\WKHSXUFKDVHU6PDOOHUSLSHV
DQGSLSHOLQHFRPSRQHQWVDQGORZHUVSHFLILHGPLQLPXP\LHOGVWUHQJWKPD\EHVXSSOLHGZLWKLQVSHFWLRQFHUWLILFDWH
%

 6PDOOFRPSRQHQWV

,QVWUXPHQWSLSHZRUNLQVWUXPHQWVZHOGILWWLQJVDQGVLPLODUFRPSRQHQWVSURGXFHGDVEXONPDWHULDOVZKHUHLWLV
LPSUDFWLFDEOHWREHPDUNHGZLWKSURGXFWLGHQWLILFDWLRQQXPEHUVPD\EHVXSSOLHGZLWKDWHVWUHSRUWFRQIRUPLQJWR
OHYHORI(1

 2WKHUVWHHOW\SHVRUJUDGHV

6WHHOW\SHVRUJUDGHVRWKHUWKDQWKRVHOLVWHGLQWKHVWDQGDUGVUHIHUUHGWRLQWKLVFODXVHFDQDOVREHXVHGZKHQ
WKHLUVXLWDELOLW\KDVEHHQDSSURYHGE\GHPRQVWUDWLRQWRDQLQVSHFWLRQERG\ZKLFKKDVEHHQDFFUHGLWHGIRUWKLV
SXUSRVHDFFRUGLQJWR(1RU(17KHUHTXLUHPHQWVRIWKHVHUHOHYDQWVWDQGDUGVUHIHUUHGWRVKRXOGEH
XVHGIRUJXLGDQFHLQHVWDEOLVKLQJPDWHULDOSURSHUWLHV

7KHUHTXLUHPHQWVRIWRVKDOOEHREVHUYHG

 3LSHV

3LSHVKDOOEHLQDFFRUGDQFHZLWK(1

)RUGLPHQVLRQVQRWFRYHUHGE\(1DJUHHPHQWVKDOOEHUHDFKHGEHWZHHQSXUFKDVHUDQGPDQXIDFWXUHU
FRQFHUQLQJUHTXLUHPHQWV

(;$03/( 5HTXLUHPHQWVVXFKDVPLQLPXPYDOXHVIRULPSDFWHQHUJ\

)RUIDFLOLWLHVZKHUHVPDOOHUDPRXQWVRISLSHPDWHULDOVDUHQHHGHGSLSHVFRQIRUPLQJWRDQ\UHOHYDQWSDUWRI
SU(1RUSU(1PD\EHVSHFLILHGE\WKHSXUFKDVHU

(;$03/( )DFLOLWLHVVXFKDVSUHVVXUHFRQWUROVWDWLRQV

‹%6,
3DJH
(1

 )LWWLQJV

 *HQHUDO

)LWWLQJVDUHXQGHUVWRRGDVIDFWRU\PDGH
± EHQGVDQGHOERZV
± WHHVDQG<FRQQHFWLRQV
± UHGXFHUV
± FDSV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± VHWRQDQGVHWLQEUDQFKFRQQHFWLRQV
± UHODWHGLWHPV

:KHUHWKHWHQVLOHSURSHUWLHVRIDILWWLQJGRQRWPHHWWKHPLQLPXPUHTXLUHPHQWVIRUWKHUHOHYDQWJUDGHWKH
FRQGLWLRQVDUHDOVRIXOILOOHGLIWKHWHUP³DFWXDO\LHOGWLPHVPHDVXUHGZDOOWKLFNQHVV´LVHTXDOWRRUJUHDWHUWKDQWKH
WHUPFDOFXODWHGZLWKWKHVSHFLILHGPLQLPXPYDOXHV7KLVWHUPKDVWREHREWDLQHGE\WHVWLQJ

7KHPLQLPXPUHTXLUHGLPSDFWHQHUJ\YDOXHVDFFRUGLQJWRVKDOOEHPHW

7KHPDQXIDFWXULQJSURFHVVVKDOOEHVXEMHFWWRDPDQXIDFWXULQJSURFHGXUHTXDOLILFDWLRQWHVW

 0DQXIDFWXULQJ

 %HQGLQJRISLSHV

:KHUHORQJLWXGLQDOO\ZHOGHGSLSH 6$: LVXVHGWKHVHDPVKRXOGEHSODFHGFORVHWRWKHQHXWUDOD[LV

7KHPDQXIDFWXULQJSURFHVVVKDOOEHDJUHHGEHWZHHQWKHPDQXIDFWXUHUDQGWKHSXUFKDVHU:KHUHWKHSURFHVV
HPSOR\VKHDWWUHDWPHQWWKHHIIHFWRIWKHSURFHVVRQWKHPDWHULDOSURSHUWLHVVKRXOGEHJLYHQGXHFRQVLGHUDWLRQ

 %UDQFKFRQQHFWLRQV

7HHVDQG<FRQQHFWLRQVDUHPDQXIDFWXUHG
± IURPSLSHZLWKZHOGHGRQQR]]OHVRUSLSHZLWKH[WUXGHGRXWOHW
± LIXVLQJZHOGHGSLSHFDUHVKDOOEHWDNHQWRHQVXUHWKDWWKHRXWOHWGRHVQRWLQWHUIHUHZLWKWKHSLSHVHDP
± E\ZHOGLQJSUHVVHGRUUROOHGVKHOOVZLWKH[WUXGHGRUZHOGHGRXWOHW

 5HGXFHUV

5HGXFHUVDUHPDQXIDFWXUHG
± E\H[SDQGLQJDQGRUUHGXFLQJRISLSH
± E\ZHOGLQJSUHVVHGVKHOOVRUUROOHGSODWH
± E\H[WUXGLQJDQRXWOHWLQDFDS

 &DSV

&DSVDUHPDQXIDFWXUHGE\SUHVVLQJ

 'LPHQVLRQVDQGWROHUDQFHV

'LPHQVLRQVDQGWROHUDQFHVVKDOOFRQIRUPWRWKHUHOHYDQW(1VWDQGDUGXQOHVVRWKHUZLVHVSHFLILHGE\WKH
SXUFKDVHU

‹%6,
3DJH
(1

 (QGSUHSDUDWLRQ

(QGSUHSDUDWLRQLQFOXGLQJEHYHOOLQJVKDOOFRQIRUPWRWKHUHOHYDQW(1VWDQGDUGXQOHVVRWKHUZLVHVSHFLILHGE\WKH
SXUFKDVHU

 7HVWLQJ

7HVWLQJRISK\VLFDOSURSHUWLHVVKDOOEHFRQGXFWHGDIWHUDOOIRUPLQJDQGKHDWWUHDWPHQWRSHUDWLRQVKDYHEHHQ
FRPSOHWHG7HVWVSHFLPHQVKDOOEHUHPRYHGIURPDGGLWLRQDOILWWLQJVRUIURPH[FHVVOHQJWK7HVWZHOGVPDGHXVLQJ
WKHZHOGLQJSURFHGXUHDSSURYHGIRUWKHPDQXIDFWXULQJSURFHVVMRLQWLQJVHSDUDWHSODWHPD\EHXVHGWR
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

GHPRQVWUDWHWKHSURSHUWLHVRIORQJLWXGLQDOVHDPV7KHSODWHKDVWREHVXEPLWWHGWRWKHVDPHKHDWWUHDWPHQWDVWKH
ILWWLQJ

)RUWHVWLQJSXUSRVHVWKHILWWLQJVVKDOOEHGLYLGHGXSLQWRWHVWXQLWV$WHVWXQLWVKDOOFRQVLVWRIILWWLQJVIURPWKHVDPH
KHDWWKHVDPHVL]HDQGHTXLYDOHQWKHDWWUHDWPHQW

7KHFRQIRUPLW\RIKHDWWUHDWPHQWKDVWREHGHPRQVWUDWHGE\KDUGQHVVWHVWV

 0DUNLQJ

$OOILWWLQJVVKDOOEHPDUNHGH[WHUQDOO\ZLWKORZVWUHVVGLHVWDPSVDVIROORZV
± PDQXIDFWXUHU
VQDPHRUV\PERO
± XQLTXHLGHQWLILFDWLRQRUVHULDOQXPEHU
± LQVSHFWRU
VVWDPS

 )ODQJHGFRQQHFWLRQV

)ODQJHVVKDOOEHFODVVGHVLJQDWHG)ODQJHVJDVNHWVDQGEROWLQJVKDOOFRQIRUPWRWKHUHOHYDQW(1VWDQGDUGV

 ,QVXODWLQJFRQQHFWLRQV

 7\SHWHVW

,QVXODWLQJFRXSOLQJVDQGIODQJHGFRQQHFWLRQVVKDOOEHW\SHWHVWHG

 6WUHQJWKWHVW

(DFKLQVXODWLQJFRXSOLQJVKDOOEHK\GURVWDWLFDOO\SUHVVXUHWHVWHGIRUDWOHDVWILYHPLQXWHVDQGDPLQLPXPRI'3
(QGVHDOLQJPHWKRGVZKLFKVXEMHFWWKHFRXSOLQJWRD[LDOFRPSUHVVLRQVKDOOQRWEHXVHGIRUWKLVWHVW

7KHK\GURVWDWLFWHVWVHTXHQFHVKDOOEHDJUHHGEHWZHHQSXUFKDVHUDQGPDQXIDFWXUHU

 (OHFWULFDOWHVW

(DFKLQVXODWLQJFRXSOLQJVKDOOEHWHVWHGLQGU\FRQGLWLRQIRURQHPLQXWHDWDPLQLPXPYROWDJHRI9$&
+] 7KLVVKDOOQRWJLYHULVHWRDQ\FRURQDHIIHFWVRULQVXODWLRQSURSHUW\EUHDNGRZQ

$IWHUWKHK\GURVWDWLFSUHVVXUHWHVWWKHUHVLVWDQFHLQWKHGU\FRQGLWLRQVKDOOEHQRWOHVVWKDQ0 ZKHQWHVWHG
ZLWKDPLQLPXPYROWDJHRI9'&

 9DOYHV

9DOYHVVKDOOEHW\SHWHVWHGDQGFRQIRUPWRWKHDSSURSULDWH(1VWDQGDUGV

 ([WHUQDODQGLQWHUQDOFRDWLQJV

&RDWLQJVRQSLSHDQGZKHUHDSSOLFDEOHRWKHUSLSHOLQHFRPSRQHQWVVKDOOFRQIRUPWRWKHUHOHYDQW(1VWDQGDUGV

‹%6,
3DJH
(1

 &RQVWUXFWLRQ

 *HQHUDO

7KHZRUNRQWKHSLSHOLQHVWUXFWXUHVVKDOOEHFDUULHGRXWLQFRPSOLDQFHZLWKWKHOHJLVODWLRQLQIRUFHLQWKHFRXQWU\
FRQFHUQHGDQGWKHUHJLRQLQZKLFKWKHVWUXFWXUHLVEXLOW

:RUNVKDOOEHFDUULHGRXWLQVXFKDZD\DVWRHQVXUHWKHVDIHW\RIWKHZRUNIRUFHDQGWKLUGSDUWLHVDQGSURWHFWLRQRI
SURSHUW\
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

&RPSHWHQWSHUVRQQHOFDSDEOHRIDVVHVVLQJWKHTXDOLW\RIWKHZRUNZLWKLQWKHVFRSHRIWKLVVWDQGDUGVKDOOEH
HPSOR\HGRQWKHVXSHUYLVLRQDQGH[HFXWLRQRIWKHFRQVWUXFWLRQSURMHFW&RQWUDFWRUVDSSRLQWHGE\WKHRSHUDWRUVKDOO
SRVVHVVWKHTXDOLILFDWLRQVQHFHVVDU\IRUWKHH[HFXWLRQRIWKHZRUN7KHRSHUDWRUVKDOOVDWLVI\LWVHOIWKDWWKH
QHFHVVDU\TXDOLILFDWLRQVDUHKHOG

 ([HFXWLRQRIZRUN

7KHHDVHPHQWVUHODWLQJWRWKHZRUNLQJVWULSVKDOOEHREWDLQHGEHIRUHZRUNFRPPHQFHV

 0DUNLQJRXWWKHVLWH

7KHZRUNLQJVWULSVKDOOEHPDUNHGRXWDQGWKHSURMHFWHGSLSHOLQHURXWHVWDNHGRXWEXULHGRURYHUKHDGVWUXFWXUHV
VKDOOEHPDUNHGJLYLQJWKHORFDWLRQW\SHGHSWKDQGFKDUDFWHULVWLFVRIWKHVWUXFWXUH

(;$03/( %\VLJQVRUJURXQGPDUNLQJ

2YHUKHDGEDUULHUVRUZDUQLQJVVKRXOGEHLQVWDOOHGPPLQLPXPHLWKHUVLGHRIRYHUKHDGSRZHUOLQHVZKHUHWKH
ZRUNLQJVWULSSDVVHVXQGHU

7KHPDUNLQJV\VWHPVKDOOEHPDLQWDLQHGLQJRRGFRQGLWLRQGXULQJWKHFRQVWUXFWLRQSHULRG

 ,QLWLDOVLWHLQVSHFWLRQV

,QLWLDOVLWHLQVSHFWLRQVVKDOOEHFDUULHGRXWEHIRUHDQ\DFWXDOZRUNFRPPHQFHV,QVSHFWLRQUHSRUWVVKDOOEHGUDZQ
XSZLWKWKHPXWXDODJUHHPHQWRIDOOSDUWLHVFRQFHUQHG

7KHLQVSHFWLRQUHSRUWVVKDOOVWDWHWKHUHTXLUHPHQWVRIWKHXVHUVRZQHUVRIWKHODQGGXULQJFRQVWUXFWLRQDQGVHWRXW
WKHSURFHGXUHVIRUUHLQVWDWHPHQWRIWKHVLWHRQFRPSOHWLRQRIWKHZRUNDQGFRPSHQVDWLRQWRWKHXVHUVRZQHUV

 :RUNLQJVWULS

7KHZLGWKRIWKHZRUNLQJVWULSVKDOOEHGHWHUPLQHGEHIRUHZRUNEHJLQVEDVHGRQWKHH[WHQWRIWKHZRUNWKHW\SHRI
WHUUDLQFURVVHGWKHW\SHRIFURSVDQGDQ\ORFDOFRQVWUDLQWVGXHWRWKHHQYLURQPHQW

7KHZRUNLQJVWULSVKDOOEHIHQFHGLIQHFHVVDU\SDUWLFXODUO\RQJUD]LQJODQGWRSUHYHQWDQLPDOVIURPVWUD\LQJ

$Q\IHOOLQJRIWUHHVRQWKHZRUNLQJVWULSVKDOOEHFDUULHGRXWLQFRPSOLDQFHZLWKDJUHHPHQWVGUDZQXSZLWKWKH
RZQHUVRSHUDWRUVDQGRWKHUVFRQFHUQHG

,IUHTXLUHGE\WKHEHDULQJFDSDFLW\RIWKHJURXQGDURDGVKDOOEHFRQVWUXFWHGZLWKLQWKHZRUNLQJVWULSIRUWKH
PRYHPHQWRIPDWHULDOVDQGHTXLSPHQWDORQJWKHSLSHOLQHURXWH

 6HSDUDWLRQRIWRSVRLO

%HIRUHGLJJLQJWKHWUHQFKHVWKHWRSVRLOVKDOOEHFDUHIXOO\UHPRYHGDQGVHSDUDWHGWRHQDEOHWKHRULJLQDOWRSVRLOWR
EHUHLQVWDWHGZKHQEDFNILOOLQJ

7RSVRLOVKDOOQRWEHPL[HGZLWKVXEVRLOH[WUDFWHGIURPWKHWUHQFKHV

7KHZLGWKDQGWKHGHSWKRIWRSVRLOUHPRYHGVKDOOEHGHWHUPLQHGRQWKHEDVLVRIWKHW\SHRIWHUUDLQ

‹%6,
3DJH
(1

 7UHQFKHV

7KHGHSWKRIWKHWUHQFKVKDOOEHGHWHUPLQHGVXFKWKDWWKHSLSHFRYHUFRPSOLHVZLWKWKHGUDZLQJVDQGGRFXPHQWV
HVWDEOLVKHGDWWKHGHVLJQDQGVXUYH\VWDJHWDNLQJLQWRFRQVLGHUDWLRQWKHDGGLWLRQRIDQ\SURWHFWLRQ

(;$03/( 3URWHFWLRQE\WKHXVHRIDSURWHFWLYHPDWHULDOWKHLQVWDOODWLRQRIDEDOODVWV\VWHPDQ\GUDLQDJH
QHWZRUNV

7KHZLGWKRIWKHWUHQFKVKDOOEHGHWHUPLQHGDVDIXQFWLRQRIGHSWKLQRUGHUWRDYRLGDQ\LQVWDELOLW\,WVKDOOHQDEOH
HDV\LQVWDOODWLRQRIWKHSLSHZLWKRXWGDPDJLQJWKHH[WHUQDOFRDWLQJ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHWUHQFKZDOOVFDQEHYHUWLFDOVORSLQJRUEDWWHUHGGHSHQGLQJRQWKHGHSWKZLGWKDQGW\SHRIWHUUDLQDQGVRLO
7KHZDOOVVKDOOEHVKRUHGLIQHFHVVDU\SDUWLFXODUO\LIWKHZRUNIRUFHLVWRGHVFHQGLQWRWKHWUHQFK

7KHWUHQFKERWWRPVKRXOGEHIODWDQGIUHHRIDQ\VKDUSHGJHVRUREMHFWVOLDEOHWRGDPDJHWKHSLSHOLQHRULWV
H[WHUQDOFRDWLQJ,IQHFHVVDU\WKHSLSHVKDOOEHSURWHFWHGE\VXLWDEOHPHDQVDVDSSURSULDWH

(;$03/( 3URWHFWLRQE\VDQGDQGRUPHFKDQLFDOPHDQV

:KHUHZHOGVDUHWREHPDGHLQWKHERWWRPRIWKHWUHQFKWKHWUHQFKVKDOOEHZLGHQHGGHHSHQHGDQGNHSWIUHHRI
ZDWHUWRIDFLOLWDWHZHOGLQJDQGHQVXUHVDIHW\RIWKHZRUNIRUFH

3UHFDXWLRQVVKDOOEHWDNHQWRHQVXUHWKHVDIHW\RIDQGDYRLGGDPDJHWREXULHGVWUXFWXUHVGXULQJWUHQFKZRUN

$OOH[FDYDWLRQZRUNRWKHUHDUWKPRYLQJZRUNDQGEDFNILOOLQJVKRXOGLISRVVLEOHEHFDUULHGRXWLQGU\WUHQFKHVLI
QHFHVVDU\E\HPSOR\LQJZHOOSRLQWGHZDWHULQJ

$VWXG\VKDOOEHPDGHWRGHWHUPLQHWKHGHZDWHULQJSURFHGXUHDQGWKHTXDQWLW\DQGTXDOLW\RIWKHZDWHUUHPRYHG

3UHFDXWLRQVVKDOOEHWDNHQWRSUHYHQWWKHSLSHWUHQFKDFWLQJDVDGUDLQLQLQFOLQHGVHFWLRQV

:KHUHH[FDYDWLRQVSDVVXQGHUDURDGRUIRRWSDWKWKHGDPDJHGDUHDVKDOOEHNHSWWRDPLQLPXPDQGDQ\
UHTXLUHPHQWVRIWKHORFDODXWKRULWLHVVKDOOEHFRPSOLHGZLWK

:KHUHH[SORVLYHVDUHXVHGWKH\VKDOOEHXVHGDQGVWRUHGLQDFFRUGDQFHZLWKORFDOOHJLVODWLRQDQGFDQEHVXEMHFW
WRSULRUDXWKRUL]DWLRQV$GHWDLOHGEODVWLQJSODQVKDOOEHGUDZQXSIRUWKLVSXUSRVH

&URVVLQJVWKURXJKGUDLQHGDQGLUULJDWHGDUHDVVKDOOFDXVHDVOLWWOHQXLVDQFHDVSRVVLEOHWRWKHXVHUVRIWKH
GUDLQDJHDQGLUULJDWLRQQHWZRUNV

7KHVHOHFWLRQRIHTXLSPHQWDQGDVVRFLDWHGZRUNLQJPHWKRGVVKDOOWDNHLQWRFRQVLGHUDWLRQWKHQDWXUHRIJURXQG
FRQGLWLRQVZLWKUHVSHFWWRVDIHW\FRGHV

 &URVVLQJDQGSUR[LPLW\RIEXULHGVWUXFWXUHV FDEOHVDQGSLSHV

7KHPHWKRGRIH[FDYDWLRQFORVHWRDQXQGHUJURXQGVWUXFWXUHVKDOOEHGHILQHGVXEMHFWWRWKHDSSURYDORIWKHRZQHU
RIWKHVWUXFWXUH6SHFLDOSUHFDXWLRQVVKDOOEHWDNHQWRSUHYHQWGDPDJHWRWKHVWUXFWXUH,IQHFHVVDU\WKHWUHQFK
VKDOOEHH[FDYDWHGE\KDQG

:KHUHWKHSLSHOLQHLVWREHFRQVWUXFWHGQHDUSRZHUFDEOHVRURWKHUPHWDOOLFVWUXFWXUHVVWHSVVKDOOEHWDNHQWR
PLQLPL]HDQ\LQWHUIHUHQFHFDXVHGE\WKHFDWKRGLFSURWHFWLRQV\VWHP7KHGLVWDQFHEHWZHHQH[LVWLQJVWUXFWXUHVDQG
WKHSLSHOLQHXQGHUFRQVWUXFWLRQVKDOOKRZHYHUEHLQDFFRUGDQFHZLWKSUHYDLOLQJUHJXODWLRQVWKHGHVLJQUHSRUWDQG
WKHRZQHU
VUHTXLUHPHQWV

5HGXFHGGLVWDQFHVPD\EHSHUPLWWHGSURYLGHGH[WUDPHDVXUHVDUHWDNHQWRDYRLGGDPDJHWRWKHH[LVWLQJVWUXFWXUH
DQGWKHSLSHOLQHXQGHUFRQVWUXFWLRQ

‹%6,
3DJH
(1

 +DQGOLQJDQGVWULQJLQJ

+DQGOLQJWUDQVSRUWVWRUDJHGLVWULEXWLRQDQGVWULQJLQJRIWKHSLSHVDQGDFFHVVRULHVVKDOOEHSHUIRUPHGZLWKWKH
XWPRVWFDUHLQRUGHUQRWWRGDPDJHWKHSLSHWKHH[WHUQDOFRDWLQJVDQGWKHEHYHOV7KHHTXLSPHQWXVHGVKDOOEHRI
DIOH[LEOHPDWHULDORIVXIILFLHQWVWUHQJWKDQGVKDOOEHDYDLODEOHLQVXIILFLHQWQXPEHU,IDQHOHFWURPDJQHWLVXVHGWKH
UHVLGXDOPDJQHWLVPVKDOOEHYHULILHG,IUHVLGXDOPDJQHWLVPH[LVWVLWVKDOOEHFRQVLGHUHGWKDWSUREOHPVFDQRFFXU
ZKHQDUFZHOGLQJLVXVHG

(;$03/( (TXLSPHQWVXFKDVVOLQJVDQGFDSV

'XULQJVWRUDJHWKHSLSHVVKDOOEHSURWHFWHGDJDLQVWFRUURVLRQVXSSRUWHGRIIWKHJURXQGDQGZKHUHUHTXLUHG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

VHSDUDWHGIURPRQHDQRWKHUE\VXLWDEOHPHDQV

(;$03/( 6XLWDEOHPHDQVFDQEHEUDFNHWVRUVDQGEDJV

0HDVXUHVVKDOOEHWDNHQWRSUHYHQWUROOLQJDQGHQVXUHVWDELOLW\RISLSHVWRUDJH

 %HQGV

 (ODVWLFEHQGV

7KHSHUPLWWHGUDGLXVRIFXUYDWXUHRQEHQGVREWDLQHGE\GHIOHFWLRQGHSHQGVRQWKHPDWHULDOJUDGHDQGVL]HRIWKH
SLSHVDQGVKDOOEHVSHFLILHGLQWKHGHVLJQSKDVH

 )LHOGEHQGV

3LSHVFDQEHEHQWFROGLQWKHILHOGWRVXLWWKHOLQHGUDZLQJVDQGWRSRJUDSKLFDOVXUYH\7KLVZRUNVKDOORQO\EH
XQGHUWDNHQE\H[SHULHQFHGRSHUDWRUVXVLQJVXLWDEOHHTXLSPHQW

7KHPLQLPXPUDGLXVIRUILHOGEHQGVVKRXOGEH
± ;SLSHRXWVLGHGLDPHWHUVIRUSLSHVZLWKQRPLQDOVL]H'1RUOHVV
± ;SLSHRXWVLGHGLDPHWHUVIRUSLSHVZLWKQRPLQDOVL]HRYHU'1XSWR
± ;SLSHRXWVLGHGLDPHWHUVIRUSLSHVZLWKQRPLQDOVL]H'1RUJUHDWHU

%HQGLQJVKDOOFDXVHQRGDPDJHWRWKHSLSHRUWKHFRDWLQJ7KHRYDOLW\WROHUDQFHRIEHQGVVKDOOEHRIWKH
SLSHRXWVLGHGLDPHWHU,IZULQNOLQJRFFXUVWKHSHUPLVVLEOHIDXOWGHSWKVVKDOOEHOHVVWKDQWLPHVWKHGLVWDQFH
EHWZHHQWZRFRQVHFXWLYHSHDNV

,IQHFHVVDU\DJDXJLQJSODWHRIVRIWVWHHOVKRXOGEHSXOOHGWKURXJKWKHILHOGEHQGVWRFKHFNFRPSOLDQFHZLWKWKH
DERYHUHTXLUHPHQWV7KHSODWHGLPHQVLRQVZLOOGHSHQGRQWKHFKDUDFWHULVWLFVRIWKHSLSHDQGWKHGLIIHUHQW
SHUPLVVLEOHWROHUDQFHV$QRWKHUDSSURSULDWHPHDVXUHPHQWPHWKRGPD\EHXVHG

)RUFROGEHQWSLSHVDEHQGLQJWHVWVKDOOEHSHUIRUPHGEHIRUHWKHVWDUWRIWKHZRUN

:HOGVRQORQJLWXGLQDOO\ZHOGHGSLSHVVKDOOEHSRVLWLRQHGQHDUWKHQHXWUDO]RQH&LUFXPIHUHQWLDOZHOGVDUHQRW
SHUPLWWHGLQWKHEHQGLQJDUHD$VWUDLJKWOHQJWKRIDWOHDVWRQHSLSHGLDPHWHUZLWKDPLQLPXPRIPVKDOOEHOHIW
DWHLWKHUHQGRIWKHEHQG,IQHFHVVDU\DPDQGUHOVKRXOGEHXVHG

6SLUDOZHOGHGSLSHVPD\EHXVHGIRUILHOGEHQGLQJ

 )DFWRU\EHQGV

)RUIDFWRU\EHQGVVHHFODXVHVDQG

‹%6,
3DJH
(1

 :HOGLQJDQGZHOGH[DPLQDWLRQ

:HOGLQJRISLSHOLQHV\VWHPVVKDOOEHFDUULHGRXWLQDFFRUGDQFHZLWK(1DQGDSSURYHGSURFHGXUHV,WVKDOO
EHSHUIRUPHGE\VXLWDEO\WUDLQHGDQGTXDOLILHGRSHUDWRUV

&LUFXPIHUHQWLDOZHOGVH[DPLQDWLRQLQSLSHOLQHV\VWHPVVKDOOEHSHUIRUPHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI
WKHVWDQGDUGVHOHFWHGIRUWKHZHOGLQJDQGH[FHSWDVDOORZHGIRUWHVWVHFWLRQVWLHLQZHOGVEHFDUULHGRXWEHIRUH
SUHVVXUHWHVWLQJ

7KHPLQLPXPSHUFHQWDJHRIZHOGVWRH[DPLQHLVGHILQHGLQ(1,QFDVHVRIEXLOWXSDUHDVVSHFLDO
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

FRQVWUXFWLRQVSLSHOLQHVHFWLRQVDERYHJURXQGRUWHVWVHFWLRQWLHLQZHOGVDOOZHOGVVKDOOEHH[DPLQHGE\DQ
DSSURSULDWHQRQGHVWUXFWLYHPHWKRG

:HOGVVKDOOPHHWWKHDFFHSWDQFHFULWHULDVSHFLILHGLQ(1DSSOLHGIRUZHOGLQJIRUWKHVHOHFWHGLQVSHFWLRQ
PHWKRG:HOGVQRWPHHWLQJWKHVHFULWHULDVKDOOHLWKHUEHUHSDLUHGDQGUHLQVSHFWHGLISHUPLWWHGRUUHPRYHG

 ([WHUQDOFRDWLQJ

)RUFRDWLQJRISLSHVDQGFRPSRQHQWVVHHDOVRFODXVHVDQG

7KHFKRLFHRIV\VWHPDQGPHWKRGRIDSSOLFDWLRQVKDOOEHLQDFFRUGDQFHZLWKRQHRIWKHIROORZLQJVWDQGDUGV
± SU(1
± SU(1
± SU(1
± SU(1
± SU(1
± SU(1
± (1
± DQGRWKHUDSSURSULDWH(1VWDQGDUGV

 6XUIDFHSUHSDUDWLRQDSSOLFDWLRQFRQGLWLRQV

:KHQWKHVXUIDFHRIILHOGMRLQWVDQGFRDWLQJUHSDLUDUHDVLVGU\DQGIUHHRIDOOGHSRVLWVLWVKDOOEHFOHDQHGLQ
DFFRUGDQFHZLWKWKHVSHFLILFDWLRQ

7KHHQGVRIWKHIDFWRU\DSSOLHGFRDWLQJVKDOOEHEHYHOOHGEHIRUHWKHILHOGFRDWLQJLVDSSOLHG

7KHILHOGFRDWLQJVKDOOEHDSSOLHGLQDFFRUGDQFHZLWKWKHVSHFLILFDWLRQDQGRUPDQXIDFWXUHU
VLQVWUXFWLRQV

 &RDWLQJZHOGHGMRLQWVDQGXQFRDWHGSDUWVRISLSHV

9DULRXVWHFKQLTXHVFDQEHXVHGWRVXLWIDFWRU\DSSOLHGRUH[LVWLQJFRDWLQJVVXFKDV
± WDSHZUDSSLQJ
7KHWDSHVVKDOOEHZUDSSHGZLWKWKHVSHFLILHGODSDQGVKDOORYHUODSWKHSLSHIDFWRU\FRDWLQJ,IDPDFKLQHLV
XVHGLWVKDOOQRWGDPDJHWKHFRDWLQJ
± KHDWVKULQNDEOHVOHHYH
7KLVW\SHLVILWWHGDIWHUKHDWLQJWKHSLSHDQGWKHDGMDFHQWFRDWLQJ
± OLTXLGRUIXVLRQERQGHGHSR[\UHVLQFRDWLQJ
)RUSLSHVZLWKDIDFWRU\HSR[\FRDWLQJWKHDUHDWREHFRDWHGDQGWKHDGMDFHQWFRDWLQJVKDOOEHKHDWHG
EHIRUHDSSOLFDWLRQ
± K\GURFDUERQEDVHGFRDWLQJIRUSLSHVIDFWRU\FRDWHGZLWKDK\GURFDUERQELQGLQJSURGXFW

,QDOOFDVHVFRPSDWLELOLW\EHWZHHQWKHSURGXFWVXVHGDQGWKHSLSHFRDWLQJVKDOOEHYHULILHG7KHUHVKDOOEHD
VXIILFLHQWRYHUODSZLWKWKHRULJLQDOFRDWLQJ

‹%6,
3DJH
(1

 5HSDLULQJWKHFRDWLQJ

$IWHUUHPRYDORIWKHGDPDJHGFRDWLQJIDXOWVVKDOOEHUHSDLUHGXVLQJDV\VWHPFRPSDWLEOHZLWKWKHRULJLQDODQG
KDYLQJLGHQWLFDOFKDUDFWHULVWLFV

 &RDWLQJYDOYHVILWWLQJVDQGFDWKRGLFSURWHFWLRQFRQQHFWLRQSRLQWV

7KHFRDWLQJPDWHULDOIRUEXULHGYDOYHVILWWLQJVDQGFDWKRGLFSURWHFWLRQFRQQHFWLRQSRLQWVVKDOOEHVXLWDEOHIRUWKLV
SXUSRVH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KLVFRDWLQJFDQEHDSSOLHGLQWKHZRUNVKRSRURQVLWH,QWKHZRUNVKRSWKHILWWLQJVFDQEHFRDWHGE\HJ
± PRXOGLQJK\GURFDUERQEDVHGSURGXFWVRUHSR[\UHVLQV
± VSUD\LQJFRDWVRIHSR[\UHVLQEDVHGRUSRO\XUHWKDQHSURGXFWVZLWKDKLJKFRDOWDUHQDPHOFRQWHQW
± GLSSLQJLQDIOXLGL]HGHSR[\UHVLQRUSRZGHUHGSRO\DPLGHEDWK

6LWHFRDWLQJUHTXLUHVPDWHULDOVWKDWFRQIRUPHDVLO\WRWKHJHRPHWU\RIWKHILWWLQJV7KHIROORZLQJPD\EHXVHG
± K\GURFDUERQEDVHGELQGHUPDWHULDOVZKLFKDUHDSSOLHGHLWKHUE\PRXOGLQJRUE\FRDWLQJXVLQJDQ
LPSUHJQDWHGJODVVILEUHVXUIDFHPDW
± ZUDSSLQJLQFRPELQDWLRQZLWKDILOOHUSURGXFW7KHUDWHRIRYHUODSVKDOOEHDPLQLPXPRIWRJLYH
GRXEOHZUDSSLQJDWDOOSRLQWV
± FROGSRO\PHUL]DEOHUHVLQEDVHG HSR[\ SURFHVVHV

)L[LQJSRLQWVIRUFDWKRGLFSURWHFWLRQFDEOHVVKDOOEHSURWHFWHGXVLQJK\GURFDUERQEDVHGSURGXFWVELWXPHQ
ZUDSSLQJDSSOLHGKRWSUHIRUPHGSRO\HWK\OHQHDQGDGKHVLYHEDVHGV\VWHPVRUSURWHFWLYHZUDSSLQJV\VWHPVZLWK
ILOOHUSURGXFWV

 ,QVSHFWLRQV

7KHLQWHJULW\RIWKHSLSHFRDWLQJDQGWKHFRDWLQJRIMRLQWVVKDOOEHFKHFNHGE\DGHWHFWRURUHOHFWULFVFDQQHUWKH
YROWDJHRIZKLFKLVVHWWRVXLWWKHFKDUDFWHULVWLFVRIWKHFRDWLQJ7KHGHWHFWRUVKDOOEHXVHGDIWHUOLIWLQJWKHSLSHDQG
EHIRUHORZHULQJLQWRWKHWUHQFK7KHSDVVVSHHGVKDOOHQDEOHHDV\GHWHFWLRQRIIDXOWV)DXOWVGHWHFWHGVKDOOEH
UHSDLUHGLPPHGLDWHO\LQFRPSOLDQFHZLWK(DFKUHSDLUVKDOOEHUHWHVWHGZLWKWKHGHWHFWRU

7HVWVRQILHOGFRDWHGFRPSRQHQWVVKDOOEHFDUULHGRXWLQDFFRUGDQFHZLWKWKHDSSURSULDWHVWDQGDUGVRUWKH
VSHFLILFDWLRQV

 0HFKDQLFDOSURWHFWLRQ

$WFHUWDLQSRLQWVRQWKHOLQHDVGHWHUPLQHGLQWKHGHVLJQDVDUHVXOWRIWKHVXUYH\RUGXULQJWKHZRUNWKHFRDWLQJ
VKDOOEHSURWHFWHGPHFKDQLFDOO\IURPH[WHUQDOLQWHUIHUHQFH7KHW\SHRISURWHFWLRQFKRVHQVKDOOWDNHLQWR
FRQVLGHUDWLRQWKHFRDWLQJRIWKHSLSHVDQGZHOGHGMRLQWV,WVKDOOQRWGLVWXUEWKHIXQFWLRQLQJRIWKHFDWKRGLF
SURWHFWLRQV\VWHP

(;$03/( $VSURWHFWLRQVDQGIHOWRUFRQFUHWHFDVLQJFDQEHXVHG

 5RFN\JURXQG

,QURFN\JURXQGWKHSLSHFRDWLQJVKDOOEHDGHTXDWHO\SURWHFWHGE\DEDFNILOOFRPSRVHGRIVDQGVRIWHDUWKRU
FUXVKHGPDWHULDOVDQGRUWKHLQVWDOODWLRQRIPHFKDQLFDOSURWHFWLRQ

6KDUSHGJHGFUXVKLQJVVODJRUFOLQNHUVKDOOQRWEHXVHG6DOLQHVDQGVVKRXOGRQO\EHXVHGLISUHFDXWLRQVDUH
WDNHQ

‹%6,
3DJH
(1

 /RZHULQJLQWRWKHWUHQFK

7KHWUHQFKERWWRPVKDOOEHFRQVWUXFWHGLQVXFKDZD\DVWRSURYLGHXQLIRUPVXSSRUWWRWKHSLSHOLQH

&DUHVKDOOEHWDNHQWRHQVXUHWKDWWKHWUHQFKZDOOVDQGERWWRPDUHIUHHIURPSURWUXVLRQVRUDQ\REMHFWOLNHO\WR
FDXVHGDPDJHWRWKHSLSHFRDWLQJ

,PPHGLDWHO\EHIRUHORZHULQJWKHSLSHOLQHLQWRWKHWUHQFKWKHZKROHRIWKHSLSHFRDWLQJVKDOOEHLQVSHFWHGDQGDQ\
GHIHFWVUHSDLUHG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

(TXLSPHQWXVHGIRUOLIWLQJDQGORZHULQJWKHSLSHOLQHVKDOOQRWGDPDJHWKHSLSHRULWVFRDWLQJ7KHSLSHVKDOOEH
LQVSHFWHGZKHUHVXFKHTXLSPHQWKDVEHHQLQFRQWDFWZLWKWKHSLSHOLQH

&DUHVKDOOEHWDNHQWRHQVXUHWKDWRYHUVWUHVVLQJRIWKHSLSHOLQHGRHVQRWRFFXUGXULQJOLIWLQJRUORZHULQJRSHUDWLRQV
DQGWKDWDIWHUORZHULQJWKHSLSHOLQHLVQRWOHIWLQDVWUHVVHGFRQGLWLRQ

:HWLQVWDOODWLRQ IORDWLQJDQGVLQNLQJWKHSLSHOLQHVHFWLRQ VKRXOGEHFRQVLGHUHGLQDUHDVZLWKYHU\VRIWVRLOVDQGRU


DUHDVZKHUHGHZDWHULQJLVQRWSUDFWLFDEOH

 %DOODVWLQJDQFKRULQJ

7KHSLSHVKDOOEHEDOODVWHGRUDQFKRUHGLIQHFHVVDU\LQDUHDVZKHUHWKHSLSHWHQGVWRIORDWEHFDXVHRIWKHKLJK
JURXQGZDWHUWDEOH

7KHEDOODVWLQJGHYLFHVLQFOXGHVDQFKRUVDFRQWLQXRXVFRQFUHWHFRDWLQJDSSOLHGRQVLWHRULQWKHZRUNVKRS
FRQFUHWHVHWRQZHLJKWVVDQGDQGFOD\EDFNILOOZLWKRUZLWKRXWDJHRIDEULFRUDQ\RWKHUHTXLYDOHQWV\VWHP

,QVORSLQJJURXQGWKHWUHQFKEDFNILOOVKDOOEHVWDELOL]HGZLWKHURVLRQEDUULHUVWRSUHYHQWZDVKRXW

(;$03/( 6DQGEDJVRUZDOOLQJ

 7LHLQV

7LHLQVVKDOOEHPDGHVRWKDWDIWHUZHOGLQJWKHSLSHLVDVIUHHDVSRVVLEOHRIDQ\VWUHVVHV

%HIRUHFRDWLQJWKHMRLQWZHOGVVKDOOEHLQVSHFWHGDFFRUGLQJWRSU(17KHFRDWLQJVKDOOEHFKHFNHGZLWKD
GHWHFWRUEHIRUHWKHSLSHLVEXULHG

 %DFNILOO

7KHSRVLWLRQRIWKHSLSHLQWKHWUHQFKVKDOOEHVXUYH\HGWRHVWDEOLVKWKHDVEXLOWORFDWLRQEHIRUHWKHEDFNILOO

7RDYRLGDQ\GDPDJHWRWKHSLSHDQGWKHFRDWLQJDSUHEDFNILOOVKRXOGEHSODFHGRYHUWKHSLSHLPPHGLDWHO\DIWHU
WKHSLSHLVODLGLQWKHWUHQFK7KLVSUHEDFNILOOVKRXOGFRQWDLQQRPDWHULDOVOLNHO\WRGDPDJHWKHSLSHFRDWLQJ

(;$03/( 'DPDJHE\VWRQHVRUFRQFUHWH

%DFNILOOLQJVKDOOEHFDUULHGRXWDVVRRQDVSRVVLEOHDIWHUORZHULQJHLWKHUZKROO\RUSDUWO\WRSUHYHQWGDPDJH

,IUHTXLUHGWKHSLSHORFDWLRQVKRXOGEHPDUNHGE\DVWDQGDUG\HOORZZDUQLQJPDUNHUVWULSODLGDWDPLQLPXPRI
PDERYHWKHSLSH

%DFNILOOLQJLVJHQHUDOO\SHUIRUPHGPHFKDQLFDOO\6SHFLDOSUHFDXWLRQVVKDOOEHDGRSWHGLQGUDLQHGDUHDV

5RDGVIRRWSDWKVVKRXOGHUVEDQNVHWFVKDOOEHEDFNILOOHGZLWKPDWHULDOVZKLFKHQVXUHWKHVWDELOLW\RIWKHVH
VWUXFWXUHV

,IFRPSDFWLRQLVQHFHVVDU\LQSDUWLFXODUIRUSLSHOLQHVODLGLQEXLOWXSDUHDVDQGSLSHOLQHVURXWHGRQSXEOLFURDGVRU
IRRWSDWKVLWVKDOOEHSHUIRUPHGZLWKWKHDSSURSULDWHHTXLSPHQWZKLFKGRHVQRWFDXVHGDPDJHWRWKHSLSH

‹%6,
3DJH
(1

 5HLQVWDWHPHQW

7KHJURXQGRFFXSLHGGXULQJWKHZRUNVKDOOEHUHLQVWDWHGWRLWVRULJLQDOFRQGLWLRQDVTXLFNO\DVSRVVLEOHDIWHU
EDFNILOOLQJWKHWUHQFK

$FFHVVHVWRSURSHUW\IHQFHVGLWFKHVUHWDLQLQJZDOOVLUULJDWLRQV\VWHPVDQGRWKHUVWUXFWXUHVVKDOOEHUHLQVWDWHGLQ
FRPSOLDQFHZLWKWKHDJUHHPHQWVGUDZQXSDWWKHWLPHRILQLWLDOVXUYH\

/DQGUHJLVWHUPDUNVPRYHGIRUWKHZRUNVKDOOEHUHSODFHGE\DQDXWKRUL]HGVXUYH\RU
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

:KHUHQHFHVVDU\GHYLFHVWRSUHYHQWHURVLRQRIWKHEDFNILOOPDWHULDOVVKDOOEHLQVWDOOHGZKHQUHLQVWDWLQJ
HPEDQNPHQWVDQGVORSHV

5HLQVWDWHPHQWRIIRRWSDWKVURDGVXUIDFHVEDQNVVKRXOGHUVHWFVKDOOEHSHUIRUPHGZLWKWKHDJUHHPHQWRIWKH
DXWKRULWLHVFRQFHUQHG

 0DUNLQJV

7KHORFDWLRQRIWKHSLSHVKDOOEHFOHDUO\PDUNHGE\VXLWDEOHPHDQV

(;$03/( <HOORZZDUQLQJPDUNHUVRYHUKHDGPDUNHUVVLJQV

7KHVHPDUNHUV\VWHPVVKDOOEHILUPO\DQFKRUHGWRHQVXUHSHUPDQHQWIL[WXUH:KHUHDHULDOVXUYHLOODQFHLVLQWHQGHG
VXIILFLHQWPDUNHUVVKDOOEHYLVLEOHIURPWKHDLUWRLQGLFDWHWKHSLSHOLQHURXWH

 )LQDOVLWHLQVSHFWLRQZLWKRZQHUVDQGXVHUV

:KHQUHLQVWDWHPHQWDQGPDUNLQJLVFRPSOHWHGWKHVLWHDIIHFWHGE\WKHZRUNVKDOOEHVXEMHFWHGWRDILQDO
LQVSHFWLRQDWWHQGHGE\WKHSDUWLHVFRQFHUQHG

 6SHFLDOFURVVLQJV

 *HQHUDO

6SHFLDOFURVVLQJVVKDOOEHVXEMHFWWRWKHDSSURYDORIWKHDXWKRULWLHVFRQFHUQHG

6SHFLDOFURVVLQJVVKDOOEHLQFRPSOLDQFHZLWKWHFKQLFDOSURYLVLRQVUHJDUGLQJSXEOLFSURSHUW\FXUUHQWOHJLVODWLRQDQG
QRUPDOGHVLJQSUDFWLFHV

&URVVLQJVFDQEHRSHQWUHQFKLIQHFHVVDU\ZLWKDSURWHFWLYHFDVLQJRUVODERUWKH\FDQEH³WUHQFKOHVV´

 2SHQWUHQFKURDGRUSDWKFURVVLQJV

2SHQWUHQFKFURVVLQJVRIWDUUHGURDGVRUSDWKVVKDOOEHPDGHE\FXWWLQJWKHVXUIDFHRYHUWKHIXOOZLGWKRULQ
VHFWLRQVVXEMHFWWRWKHDSSURYDORIWKHDXWKRULWLHVFRQFHUQHG&DVLQJVLIUHTXLUHGVKDOOEHODLGRQDVWDEOHEHG

 ³7UHQFKOHVV´FURVVLQJV

7KHUHDUHVHYHUDOWHFKQLTXHVDYDLODEOHIRUFURVVLQJIHDWXUHVVXFKDVUDLOZD\VURDGVDQGZDWHUZD\VZLWKRXW
H[FDYDWLQJDQRSHQWUHQFK

'HSHQGLQJRQVRLOFRQGLWLRQVDQGJHRK\GURORJ\WKHDSSURSULDWHWHFKQLTXHFDQEHVHOHFWHGIURPWKHIROORZLQJ

± H[FDYDWLRQHLWKHUPHFKDQLFDORUPDQXDO
± MHWWLQJ
± GULYLQJE\GLVSODFLQJ
± UDPPLQJ
± PLFURWXQQHOOLQJ
± GLUHFWLRQDOGULOOLQJ VHH 

‹%6,
3DJH
(1

:KHQGHFLGLQJZKLFKRIWKHGLIIHUHQWWHFKQLTXHVWRXVHWKHIROORZLQJDVSHFWVVKDOOEHFRQVLGHUHG

± WKHSURFHVVRIH[FDYDWLQJWKHKROH
± WKHVXSSRUWQHFHVVDU\IRUWKHIDFHRIWKHERUH
± WKHVXSSRUWUHTXLUHGWRPDLQWDLQWKHKROH
± LQVHUWLRQRIWKHSLSH
± UHPRYDORIWKHVRLO
± GLUHFWLRQDOFRQWURO

7KHGLIIHUHQWSDUDPHWHUVIRUWKHVH³WUHQFKOHVV´WHFKQLTXHVDUHJLYHQLQ7DEOH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7DEOH2YHUDOOSURFHVVSDUDPHWHUVLQ³WUHQFKOHVV´WHFKQLTXHV

     
3URFHVVRI 6XSSRUW 6XSSRUW ,QVHUWLRQRISLSH 5HPRYDORI 'LUHFWLRQDO
H[FDYDWLQJ IRUIDFHRI WRPDLQWDLQERUH VRLO FRQWURO
KROH ERUH

RSWLRQV RSWLRQV RSWLRQV RSWLRQV RSWLRQV

$
([FDYDWLRQ ±1RVXSSRUW ±1RVXSSRUW ±6WDWLF ±7KURXJKWKH ±<HV
PHFKDQLFDORU ±+\GUDXOLF ±+\GUDXOLF ±'\QDPLF SLSH
PDQXDO ±3QHXPDWLF ±0HFKDQLFDO
±0HFKDQLFDO

%
-HWWLQJ ±+\GUDXOLF ±+\GUDXOLF ±'\QDPLF ±7KURXJKWKH ±<HV
SLSH

&
'ULYLQJDQG ±0HFKDQLFDO ±0HFKDQLFDO ±'\QDPLF ±7RWKH ±<HV
GLVSODFLQJ VXUURXQGLQJ
VRLO

'
5DPPLQJ ±1RQH ±0HFKDQLFDO ±'\QDPLF ±7KURXJKWKH ±1R
SLSH

(
0LFURWXQQHOOLQJ ±0HFKDQLFDO ±0HFKDQLFDO ±'\QDPLF ±7KURXJKWKH ±<HV
±+\GUDXOLF ±+\GUDXOLF SLSHZLWK
WUDQVSRUW
V\VWHP

7KHHIIHFWRQWKHVXUURXQGLQJVRLODQGWKHFURVVHGIHDWXUHGHSHQGVODUJHO\RQWKHPHWKRGVHOHFWHG$FRPELQDWLRQ
RISURFHVVDQGFRQWUROPHWKRGVKRXOGEHFKRVHQZKLFKLVPRVWDSSURSULDWHWRWKHLQVWDOOHGSLSHWKHFURVVHG
IHDWXUHDQGWKHVXUURXQGLQJDUHD

7KHEDVLFWHFKQLTXHVDUHVKRZQLQ)LJXUH

‹%6,
3DJH
(1
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)LJXUH2YHUYLHZRIVRPHRIWKHWHFKQLTXHVIRUFURVVLQJV

‹%6,
3DJH
(1

 5HTXLUHPHQWVIRUFDVLQJV

&DVLQJVFDQEHRIYDULRXVPDWHULDOVDQGVKDOOEHLQDFFRUGDQFHZLWK

$OOFDVLQJVVKDOOEHVWUDLJKW:HOGHGVWHHOFDVLQJVVKDOOKDYHQRLQWHUQDOEXUUV7KHLUHQGVVKDOOKDYHQRVKDUS
HGJHV

%HIRUHLQVHUWLQJWKHFDUULHUSLSHVHFWLRQLQWRWKHFDVLQJLWVKDOOEHILWWHGZLWKLQVXODWLQJVXSSRUWULQJV)RUVXSSRUW
ULQJVVHH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHFRQGLWLRQRIWKHFDUULHUSLSHFRDWLQJVKDOOEHLQVSHFWHGDQGWKHLQVLGHRIWKHFDVLQJSLSHVKDOOEHFOHDQHG
EHIRUHWKHLQVHUWLRQRSHUDWLRQFRPPHQFHV7KHSLSHVKDOOEHLQVHUWHGJUDGXDOO\DQGLQDFRQWUROOHGPDQQHUDQG
NHSWSHUIHFWO\LQOLQHZLWKWKHFDVLQJLQRUGHUWRDYRLGDQ\FRQWDFWGXULQJWKHLQVHUWLRQ([WUDSUHFDXWLRQVVKDOOEH
WDNHQLIQHFHVVDU\

(;$03/( 8VHRISLOHGXSEDJVRIVDQGRUFHPHQWRUFRQFUHWHEORFNV

&RUUHFWH[HFXWLRQRIWKHZRUNFDQEHFKHFNHGE\YLVXDOLQVSHFWLRQDQGE\HOHFWULFDOLQVXODWLRQPHDVXUHPHQWV

 2SHQWUHQFKPDMRUZDWHUFURVVLQJV

,IWKHFKDUDFWHULVWLFVRIWKHWUHQFKDUHOLNHO\WRFDXVHLQGHQWDWLRQVDQ\XQHYHQQHVVVKDOOEHHOLPLQDWHGE\ILOOLQJWKH
WUHQFKERWWRP$GGLWLRQDOSURWHFWLRQWRWKHSLSHOLQHIRUH[DPSOHFRQFUHWHFRDWLQJVKRXOGEHFRQVLGHUHG7KHILOOHU
PDWHULDOVKDOOEHWLSSHGLQDQGGUHGJHGOHYHOLPPHGLDWHO\EHIRUHOD\LQJWKHSLSHLQWKHWUHQFK7KHGHSWKRIWKH
WUHQFKVKDOOWDNHWKHDGGLWLRQDOILOOLQWRDFFRXQWLQRUGHUWRPDLQWDLQWKHPLQLPXPFRYHUGHSWK

7KHSLSHVKDOOEHORZHUHGLQWRWKHWUHQFKJUDGXDOO\DQGHYHQO\VRDVWRDYRLGDQ\LPSDFWVDEQRUPDOVWUHVVHVRU
GLVWRUWLRQRIWKHSLSH

$VVRRQDVWKHSLSHKDVEHHQORZHUHGLQLWVKDOOEHFKHFNHGIRUGHSWKDQGDOLJQPHQW

$IWHUOD\LQJWKHSLSHVKDOOQRWEHVXEMHFWHGWRDQ\XQDFFHSWDEOHSHUPDQHQWVWUHVV

%HIRUHSODFLQJDQGWLHLQJLQWKHSLSHDOHDNWLJKWEODQNLQJGHYLFHVKDOOEHILWWHGWRHDFKHQG

$IWHUUHPRYDORIWKHYDULRXVSLSHOD\LQJGHYLFHVWKHWUHQFKDQGH[FDYDWLRQVVKDOOEHEDFNILOOHGFRPSOHWHO\DQGWKH
SURILOHVRIWKHEHGEDQNVDQGVXUURXQGLQJWHUUDLQUHLQVWDWHG

%DFNILOOLQJZLWKGLIIHUHQWPDWHULDOVVKDOOEHLQFRPSOLDQFHZLWKWKHLQVWUXFWLRQVJLYHQIRUWKHORQJLWXGLQDODQGODWHUDO
SURILOHLQWKHGHVLJQ

%DQNVORSHVVKDOOEHFRQVROLGDWHGE\DQ\DSSURSULDWHGHYLFH

7KHLPSHUPHDELOLW\RIWKHEDQNVVKDOOEHUHLQVWDWHG7KHWHUUDLQDQGDOOVWUXFWXUHVORFDWHGZLWKLQWKHVLWHOLPLWVVKDOO
EHUHVWRUHGWRDVWDWHLGHQWLFDOWRWKDWUHSRUWHGSULRUWRWKHZRUN

7KHSLSHVKDOOEHVXEMHFWHGWRWKHWHVWVVHWRXWLQ

 'LUHFWLRQDOGULOOLQJ

%HIRUHZRUNFRPPHQFHVDUHSRUWVKDOOEHGUDZQXSVHWWLQJRXW

± WKHWRWDOH[WHQWRIWKHZRUNVLWH
± WKHSURILOHRIWKHODXQFKLQJVWDQGLQFOXGLQJWKHSRVLWLRQRIVXSSRUWVDQGWKHGLVWDQFHEHWZHHQOLIWLQJ
PDFKLQHU\
± WKHSXOOLQJIRUFHRQWKHSLSHDWWKHEHJLQQLQJGXULQJDQGDWWKHHQGRIWKHSURFHVVDQGWKHUDWHRI
SURJUHVVRIWKHSLSH
± WKHWKHRUHWLFDOGULOOLQJSURILOH

‹%6,
3DJH
(1

$QLQLWLDOVLWHLQVSHFWLRQUHSRUWVKDOOEHGUDZQXSIRUDOOWKHODQGRFFXSLHGIRUWKHGULOOLQJRSHUDWLRQDQGFRQVWUXFWLRQ
DQGOD\LQJRIWKHSLSHOLQH

7KHWRSVRLOVKRXOGEHUHPRYHGIURPWKHDUHDRFFXSLHGE\WKHZRUNDQGVWRUHGVHSDUDWHO\

7KLVSORWDQGWKHGULOOLQJVWDUWDQGHQGSRLQWVVKDOOEHVWDNHGRXW

$OOZHOGVVKDOOEHLQVSHFWHGQRQGHVWUXFWLYHO\LQDFFRUGDQFHZLWK(1

7KHSLSHOLQHVHFWLRQVKDOOEHSODFHGRQVXSSRUWVWRHQDEOHLWWRPRYHGXULQJWKHSXOOLQJRSHUDWLRQ7KHVXSSRUWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

VKDOOEHGHVLJQHGVRDVQRWWRGDPDJHWKHSLSHFRDWLQJ
7KHPLQLPXPUDGLXVVKRXOGEH'1XQOHVVRWKHUZLVHUHTXLUHG

,QDGGLWLRQORQJLWXGLQDOVWUHVVHVVKDOOEHORZHUWKDQWKRVHSHUPLWWHGE\WKHGHVLJQ

%HIRUHLQVWDOODWLRQRIWKHSLSHOLQHDQLQVXODWLRQWHVWVKDOOEHFDUULHGRXWRQWKHFRDWLQJXVLQJDKROLGD\GHWHFWRU

7KHSUHGHWHUPLQHGWKHRUHWLFDOSURILOHVKDOOEHDGKHUHGWRFORVHO\ZKHQGULOOLQJWKHSLORWKROH7KHSHUPLWWHG
GHYLDWLRQVKDOOEHPODWHUDOO\DQGPYHUWLFDOO\IURPWKHDSSURYHGWKHRUHWLFDOSURILOH

$OOSUHFDXWLRQVVKDOOEHWDNHQWRSUHYHQWGULOOLQJPXGVSUHDGLQJRYHUWKHDUHD

7KHSDUDPHWHUVXVHGWRFDOFXODWHWKHSXOOLQJORDGDQGWKHPXGSUHVVXUHGXULQJLQVWDOODWLRQVKDOOEHFRQWLQXRXVO\
UHFRUGHG

'XULQJWKHRSHUDWLRQWKHSLSHVKDOOEHVHDOHGRQERWKHQGVXQWLOWLHLQ

$IWHUWKHZRUNWKHVLWHVKDOOEHUHLQVWDWHGLQFRPSOLDQFHZLWK,QSDUWLFXODUWKHGULOOLQJPXGVKDOOEH
UHPRYHGEHIRUHUHLQVWDWHPHQWRIWKHWRSVRLO

$UHSRUWVKDOOEHSURGXFHGXSRQFRPSOHWLRQZKLFKLQFOXGHV
± WKHORQJLWXGLQDOSURILOHRIWKHSLSHZLWKUHOHYDQWGLPHQVLRQVRIWKHFXUYHDQGUDGLXV
± WKHPHDVXUHPHQWVRIPXGSUHVVXUHPXGIORZUDWHSXOOLQJIRUFH[\]FRRUGLQDWHVRIWKHGULOOKHDG
UHFRUGHGGXULQJGULOOLQJDQGDQ\RWKHUUHOHYDQWVWDWLVWLFV

 &OHDQLQJ

%HIRUHWHVWLQJDQGFRPPLVVLRQLQJWKHSLSHOLQHVHFWLRQVKDOOEHFKHFNHGIRUFOHDQOLQHVVDQGLIQHFHVVDU\IRU
RYDOLW\

7KHSLSHOLQHVHFWLRQVKDOOEHFOHDQHGZLWKDSLJRUIRDPVSKHUH

7RFOHDQWKHSLSHDQGLIQHFHVVDU\FKHFNIRURYDOLW\DSLJRUDVSKHUHVKDOOEHUXQVHYHUDOWLPHVWKURXJKHDFK
EDFNILOOHGVHFWLRQ

7KHSLJWUDYHOVSHHGVKDOOEHFRQWUROOHGDQGPRQLWRUHGRQDSUHVVXUHJDXJH

7RSUHYHQWLQJUHVVRIIRUHLJQPDWWHUWKHVHFWLRQVVKDOOEHFDSSHGEHIRUHDQGDIWHUWKHWHVWV

 7HVWLQJ

 *HQHUDO

7KHSUHVVXUHWHVWVVKDOOSURYHWKHVWUHQJWKDQGWLJKWQHVVRIWKHSLSHOLQH7HVWLQJVKDOOEHSHUIRUPHGLQDFFRUGDQFH
ZLWKDSSOLFDEOHVHFWLRQVRI(1

‹%6,
3DJH
(1

 7HVWSUHSDUDWLRQ

7KHIOXLGXVHGIRUWKHWHVWVVKRXOGQRUPDOO\EHZDWHU

7KHZDWHUVKDOOEHFOHDQZLWKDFRUURVLRQLQKLELWRUDGGHGLIQHFHVVDU\

7KHSLSHVKDOOEHILOOHGXVLQJSLJVWRSUHYHQWWKHIRUPDWLRQRIDLUSRFNHWV

7KHWHVWVVKRXOGQRUPDOO\EHFDUULHGRXWZLWKWKHWUHQFKDGHTXDWHO\EDFNILOOHGWRDYRLGWKHLQIOXHQFHRIWHPSHUDWXUH
FKDQJHV,IWKHJURXQGWHPSHUDWXUHLQWKHLPPHGLDWHYLFLQLW\RIWKHSLSHVLVOHVVWKDQR&DQWLIUHH]HVKDOOEH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

DGGHG

2QFRPSOHWLRQRIILOOLQJRSHUDWLRQVWLPHVKRXOGEHDOORZHGIRUWKHZDWHULQWKHVHFWLRQVWRVWDELOL]H7KHZDWHU
SUHVVXUHVWREHPDLQWDLQHGDQGWKHORFDWLRQDQGFKDUDFWHULVWLFVRIWKHPHDVXULQJDSSDUDWXVVKDOOEHGHILQHG
EHIRUHWHVWLQJFRPPHQFHV

(;$03/( 0HDVXULQJDSSDUDWXVVXFKDVWKHUPRPHWHUVGHDGZHLJKWSUHVVXUHJDXJHV

7KHPHDVXULQJLQVWUXPHQWVVKDOOKDYHXQGHUJRQHFHUWLILHGSHULRGLFFDOLEUDWLRQ3UHVVXUHUHFRUGLQJLQVWUXPHQWV
VKDOOEHLQVWDOOHGLQDVKHOWHUHGSODFH

 6WUHQJWKWHVW

7KHPLQLPXPGXUDWLRQIRUVWUHQJWKWHVWLQJVKDOOEHPLQXWHV

6WUHQJWKWHVWLQJVKDOOEHFDUULHGRXWVWDUWLQJDWDQDFWXDOSUHVVXUHRIDWOHDVWWLPHVWKHGHVLJQSUHVVXUH '3
DERYHWKHPD[LPXPLQFLGHQWDOSUHVVXUH 0,3 DWWKHORZHVWSRLQWRIWKHWHVWHGSLSHOLQHVHFWLRQ

$WQRSRLQWLQWKHWHVWHGSLSHOLQHVHFWLRQVKDOOWKHDFWXDOSUHVVXUHIRUVWUHQJWKWHVWLQJEHOHVVWKDQWLPHV'3
DERYH0,3DWWKHVWDUWRIWKHWHVW

7KHVWUHQJWKWHVWSUHVVXUHVKDOOQRWH[FHHGWKHSUHVVXUHWKDWFDXVHVH[WHQVLYH\LHOGLQJ

7KHPRQLWRUHGSUHVVXUHVKDOOQRWVKRZDQ\VLJQLILFDQWGURSGXULQJWKHWHVW

7KHWHVWFDQEHSHUIRUPHGGXULQJWKHVWDELOL]DWLRQSHULRGSULRUWRWKHWLJKWQHVVWHVW

+\GURVWDWLFWHVWLQJLVUHFRPPHQGHG$LURULQHUWJDVLVDFFHSWDEOHDVDWHVWPHGLXPSURYLGHGDSSURSULDWHVDIHW\
SUHFDXWLRQVDUHWDNHQDQGSUHVVXUHWLPHVYROXPHLVOLPLWHG

(;$03/( $FWXDOSUHVVXUHIRUVWUHQJWKWHVWLQJDWWKHVWDUWRIWKHWHVW
D LI0,3 023DQG023 '3WKHQ
± LQIODWDUHDVWKHDFWXDOSUHVVXUHVKDOOEHJUHDWHUWKDQRUHTXDOWR'3
± LQPRXQWDLQRXVDUHDVWKHDFWXDOSUHVVXUHVKDOOEHDWRQHSRLQWJUHDWHUWKDQRUHTXDO
WR'3DQGDWQRSRLQWVPDOOHUWKDQRUHTXDOWR'3
E LI0,3 023DQG023 '3WKHQ
± LQPRXQWDLQRXVDUHDVWKHDFWXDOSUHVVXUHVKDOOEHDWRQHSRLQWJUHDWHUWKDQRUHTXDO
WR'3DQGDWQRSRLQWVPDOOHUWKDQRUHTXDOWR'3

 7LJKWQHVVWHVW

7KHWLJKWQHVVWHVWPD\EHFRPELQHGZLWKWKHVWUHQJWKWHVW

7KHWLJKWQHVVWHVWSUHVVXUHVKDOOQRWEHKLJKHUWKDQWKHVWUHQJWKWHVWSUHVVXUH7KHSUHVVXUHVKDOOQRWEHOHVVWKDQ
'3DWWKHVWDUWRIWKHWLJKWQHVVWHVW

7KHWHVWGXUDWLRQVKDOOEHGHWHUPLQHGRQWKHEDVLVRIWKHFKDUDFWHULVWLFVRIWKHVWUXFWXUHDQGWKHDFFXUDF\RIWKH
PHDVXULQJLQVWUXPHQWV,WVKDOOQRWEHOHVVWKDQKRXUV)RUYROXPHVRIOHVVWKDQPRUIRUXQFRYHUHG
VHFWLRQVZKLFKFDQEHIXOO\LQVSHFWHGYLVXDOO\WKLVGXUDWLRQPD\EHUHGXFHG

‹%6,
3DJH
(1

+\GURVWDWLFWHVWLQJLVUHFRPPHQGHG$LURULQHUWJDVLVDFFHSWDEOHDVDWHVWPHGLXPSURYLGHGDSSURSULDWHVDIHW\
SUHFDXWLRQVDUHWDNHQDQGSUHVVXUHWLPHVYROXPHLVOLPLWHG,QVXFKFDVHDQDSSURSULDWHWHVWSUHVVXUHVKDOOEH
XVHG

%HIRUHFDUU\LQJRXWWKHWLJKWQHVVWHVWLWVKDOOEHDVFHUWDLQHGWKDWWKHTXDQWLW\RIDLULQWKHSLSHLVVXIILFLHQWO\VPDOO
QRWWRDIIHFWWKHWHVWUHVXOWV

7KHSLSHLVFRQVLGHUHGOHDNWLJKWLIWKHWHPSHUDWXUHDQGSUHVVXUHPHDVXUHPHQWVVKRZWKDWWKHYROXPHRIWHVW
PHGLXPLVPDLQWDLQHGWKURXJKRXWWKHWHVW
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

 3UHWHVWLQJ

3LSHDQGILWWLQJVVKDOOEHSUHWHVWHGLQIROORZLQJFLUFXPVWDQFHV

± ZKHQWKH\FDQQRWEHWHVWHGDIWHULQVWDOODWLRQLQVXEDVVHPEOLHVWREHLQFRUSRUDWHGLQWRDQH[LVWLQJ
LQVWDOODWLRQ
± ZKHQWKH\DUHWREHLQVWDOOHGLQFORVHSUR[LPLW\WRRSHUDWLQJSODQWZKLFKFDQQRWEHSURWHFWHGDJDLQVWWHVW
IDLOXUH
± ZKHQLWLVFRQVLGHUHGWKDWWKHFRQVHTXHQFHVRIDWHVWIDLOXUHMXVWLI\SUHWHVWLQJ

 'HZDWHULQJ

2QFHWKHWHVWUHVXOWVKDYHEHHQGHFODUHGVDWLVIDFWRU\WKHSLSHOLQHVKDOOEHGHZDWHUHG

7KHSLJJLQJHTXLSPHQWVKDOOEHUXQWKURXJKWKHSLSHOLQHDVPDQ\WLPHVDVQHFHVVDU\WRGHZDWHULWVDWLVIDFWRULO\

 $FFHSWDQFH

 $VEXLOWUHFRUGV

$VZRUNDGYDQFHVWKHSRVLWLRQRIWKHSLSHVKDOOEHVXUYH\HGDQGSORWWHGRQWKHGUDZLQJV

$QDUFKLYHFRQWDLQLQJDOOGRFXPHQWV GUDZLQJVGHVLJQFDOFXODWLRQVZHOGLQJORJHWF ZKLFKHQDEOHORFDWLRQDQG


GHVFULSWLRQRIWKHSLSHVKDOOEHFRPSLOHGRQFRPSOHWLRQRIWKHZRUN

 3UHFRPPLVVLRQLQJ

3UHFRPPLVVLRQLQJVKDOOWDNHSODFHSULRUWRWKHLQWURGXFWLRQRIJDVIRUQRUPDORSHUDWLQJSXUSRVHV

7KHV\VWHPVKDOORQO\EHFRPPLVVLRQHGZKHQLWLVFRPSOHWHO\LQVWDOOHGWHVWHGDQGFOHDQHGDQGZKHUHDSSOLFDEOH
FRQQHFWHGWRDPDLQQHWZRUN

,IQHFHVVDU\GU\LQJFDQEHFRPSOHWHGE\YDFXXPGU\LQJEODVWLQJZLWKGU\DLURUDQ\RWKHUVXLWDEOHPHWKRGLQ
DGGLWLRQWRGU\LQJE\SLJJLQJ

,IRSHUDWLRQRIWKHSLSHOLQHLVQRWWRFRPPHQFHVRRQDIWHUSUHFRPPLVVLRQLQJLWVKDOOEHILOOHGZLWKDIOXLGWRSURWHFW
DJDLQVWLQWHUQDOFRUURVLRQ

 +DQGRYHUDQGGRFXPHQWDWLRQ

7KHSLSHOLQHV\VWHPVKDOOEHKDQGHGRYHUDIWHUSUHFRPPLVVLRQLQJRQILQDODQGFRXQWHUVLJQHGLQVSHFWLRQRIWKHVLWH
DQGRQVXEPLVVLRQRIWKHFRQVWUXFWLRQFRPSOHWLRQUHSRUWLQFOXGLQJDUFKLYHVFRQVWUXFWLRQGUDZLQJVVSHFLILFDWLRQV
DQGDOOGRFXPHQWVUHODWHGWRWKHGHVLJQDQGFRQVWUXFWLRQZKLFKVKDOOEHWUDQVIHUUHGWRWKHSLSHOLQHRSHUDWRU

‹%6,
3DJH
(1

 2SHUDWLRQDQGPDLQWHQDQFH

 *HQHUDO

 3ROLF\

7KHSLSHOLQHRSHUDWRULVUHVSRQVLEOHIRUIRUPXODWLQJWKHSROLF\ZLWKUHJDUGWRSLSHOLQHRSHUDWLRQDQGPDLQWHQDQFH
DFWLYLWLHV7KHREMHFWRIWKHSROLF\LVWRHQVXUHWKDWWKHV\VWHPFDUULHVWKHJDVVDIHO\HFRQRPLFDOO\DQGZLWKRXW
LQWHUUXSWLRQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHVWDWXVRIWKHSLSHOLQHV\VWHPFDQKRZHYHUEHLQIOXHQFHGE\WKHUHOLDELOLW\RIWKHLQGLYLGXDOLWHPVRIHTXLSPHQW
DQGRUE\WKHRSHUDWLRQDQGWKHPDLQWHQDQFHRIWKHSLSHOLQHV,QRUGHUWRPHHWJRRGSHUIRUPDQFHVWDQGDUGVDOO
QHFHVVDU\SUHFDXWLRQVDQGSURYLVLRQVVKDOOEHWDNHQWR

± HQVXUHVDIHRSHUDWLRQRIWKHSLSHOLQHV\VWHP
± PRQLWRULWVFRQGLWLRQ
± FDUU\RXWPDLQWHQDQFHVDIHO\DQGHIIHFWLYHO\
± GHDOHIIHFWLYHO\DQGUHVSRQVLEO\ZLWKLQFLGHQWVDQGHPHUJHQFLHV

7KHVHSUHFDXWLRQVDQGSURYLVLRQVVKDOOEHLQFRUSRUDWHGLQWRWKHPDQDJHPHQWV\VWHP

 6DIHW\DQGHQYLURQPHQW

$OORSHUDWLRQVDQGPDLQWHQDQFHVKDOOEHFDUULHGRXWVDIHO\LQVXFKDZD\DVWRPLQLPL]HWKHLPSDFWRQWKH
HQYLURQPHQWDVIDUDVUHDVRQDEO\SUDFWLFDEOHDQGVKDOOEHFRQVLVWHQWZLWKWKHUHTXLUHPHQWVRIQDWLRQDOOHJLVODWLRQV
RUUHOHYDQWUXOHV

$OOUHDVRQDEOHSUHFDXWLRQVVKDOOEHWDNHQWRHQVXUHWKHVDIHW\RIWKHSHUVRQQHODQGWKHSXEOLFDWODUJHDQGWR
SURWHFWSURSHUW\SODQWDQGWKHHQYLURQPHQW

 2UJDQL]DWLRQ

2QHRIWKHSULPDU\WDVNVRIDPDLQWHQDQFHDQGRSHUDWLQJRUJDQL]DWLRQLVWRPDWFKUHVRXUFHVWRWKHZRUNORDG7KH
REMHFWLYHRIVXFKPDWFKLQJLVWRDFKLHYHWKHDJUHHGSLSHOLQHSHUIRUPDQFHDWRSWLPXPUHVRXUFHFRVWV7KLV
REMHFWLYHFDQEHDFKLHYHGLQPDQ\ZD\VDQGGHSHQGVRQWKHSROLF\RIWKHSLSHOLQHRSHUDWRU$VUHJDUGVWKH
RUJDQL]DWLRQRIRSHUDWLRQDQGPDLQWHQDQFHRIDSLSHOLQHV\VWHPWKHPLQLPXPUHTXLUHPHQWVDUH
± RUJDQL]DWLRQFKDUW
7KHSLSHOLQHRSHUDWRUVKDOONHHSDQXSWRGDWHFKDUWRILWVPDQDJHPHQWDQGPDLQWHQDQFHRUJDQL]DWLRQ
± UHVSRQVLEOHSHUVRQV
7KHSLSHOLQHRSHUDWRUVKDOOLGHQWLI\WKHUHVSRQVLEOHSHUVRQVDQGWKHLUGHSXW\RUGHSXWLHVIRUVSHFLILFILHOGVRI
DFWLYLW\LQFOXGLQJLIDSSOLFDEOHDXWKRUL]DWLRQRISHUPLWVWRZRUN
± SHUVRQQHODQGWUDLQLQJ
7KHUHOHYDQWSHUVRQQHOVKDOOEHIDPLOLDUL]HGZLWKDQGKDYHDFFHVVWRWKHRSHUDWLQJLQVWUXFWLRQV7KHSLSHOLQH
RSHUDWRUVKDOOSURYLGHDGHTXDWHWUDLQLQJIRULWWRHQVXUHWKHVDIHRSHUDWLRQDQGPDLQWHQDQFHRIWKHSLSHOLQH
± VWDQGE\RUJDQL]DWLRQ
7KHSLSHOLQHRSHUDWRUVKDOOKDYHDVWDQGE\RUJDQL]DWLRQZKLFKLVUHDG\DWDOOWLPHVWRUHFWLI\EUHDNGRZQV
DQGWRGHDOHIIHFWLYHO\DQGUHVSRQVLEO\ZLWKLQFLGHQWVDQGHPHUJHQFLHV

7KLVRUJDQL]DWLRQVKDOOEHSURYLGHGZLWKWKHQHFHVVDU\PDWHULDOVHTXLSPHQWDQGWRROVWRUHVSRQGWR
HPHUJHQF\VLWXDWLRQVHIIHFWLYHO\

$QHIIHFWLYHFRPPXQLFDWLRQV\VWHPVKDOOEHSURYLGHGWRWKHSHUVRQQHODWWKHORFDWLRQZKHUHWKHZRUNLV
EHLQJFDUULHGRXW

‹%6,
3DJH
(1

 2SHUDWLQJDQGPDLQWHQDQFHLQVWUXFWLRQV

7KHSLSHOLQHRSHUDWRUVKDOOSURYLGHWKHLQIRUPDWLRQQHHGHGIRUVDIHRSHUDWLRQDQGPDQDJHPHQWRIWKHSLSHOLQH
V\VWHPLQWKHIRUPRIUXOHVJXLGHOLQHVDQGSURFHGXUHVHPERGLHGLQRSHUDWLQJLQVWUXFWLRQV7KHVHLQVWUXFWLRQVIRUP
SDUWRIWKHPDQDJHPHQWV\VWHPDQGVKDOOEHFKHFNHGDWUHJXODULQWHUYDOVWRHQVXUHPD[LPXPHIIHFWLYHQHVVDQG
DPHQGHGDVQHFHVVDU\

7KLVLQIRUPDWLRQVKDOOFRPSULVHDVDPLQLPXP
± WKHRSHUDWLQJFRQGLWLRQV
(;$03/( 3UHVVXUHWHPSHUDWXUHJDVTXDOLW\
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± OLPLWVDQGSHUPLWWHGGHSDUWXUHVIURPOLPLWV
± LQVWUXFWLRQVIRUWKHFRQWUROFHQWUH V 
± UHTXLUHPHQWVIRUSHUPLWVWRZRUN
± SURFHGXUHVIRUDQGIUHTXHQF\RIDOOLQVSHFWLRQDQGPDLQWHQDQFHDFWLYLWLHV
± HTXLSPHQWGHVFULSWLRQVGUDZLQJVPDSVDQGDOORWKHUJHQHUDODUUDQJHPHQWV
± UHTXLUHPHQWVRIUHOHYDQWOHJLVODWLRQRUUHFRPPHQGDWLRQVRIUHJXODWRU\ERGLHV

6HSDUDWHSURFHGXUHVVKDOOEHODLGGRZQIRUVSHFLDODFWLYLWLHV

 (PHUJHQF\SODQ

,QWKHHYHQWRIDQHPHUJHQF\DOOQHFHVVDU\PHDVXUHVVKDOOEHWDNHQZLWKRXWGHOD\WRUHFWLI\WKHIDXOWRUUHVWRUHWKH
SLSHOLQHDQGRUVXUURXQGLQJDUHDWRDVDIHFRQGLWLRQ3RWHQWLDOIDXOWVDQGWKHSURFHGXUHVWREHIROORZHGLQWKHHYHQW
RIWKHLURFFXUUHQFHVKDOOEHLQFOXGHGLQDQHPHUJHQF\SODQ

7RWKLVHQGHDFKSLSHOLQHRSHUDWRUVKDOOKDYHDZULWWHQHPHUJHQF\SODQZKLFKSURYLGHVWKHEDVLVIRUSURFHGXUHV
DQGLQVWUXFWLRQVWRDSSURSULDWHRSHUDWLQJDQGPDLQWHQDQFHSHUVRQQHO7KHSODQVKDOODVDPLQLPXPFRQWDLQWKH
IROORZLQJLQIRUPDWLRQ

± DOLVWRILQWHUQDODQGH[WHUQDOLQGLYLGXDOVZKRDQGVHUYLFHVDQGDJHQFLHVZKLFKKDYHWREHQRWLILHGLQWKH
HYHQWRIDQLQFLGHQW
± SURFHGXUHVGHILQLQJUHVSRQVLELOLWLHVLQWKHHYHQWRIDQLQFLGHQW
± SURFHGXUHVIRUOLPLWLQJWKHHIIHFWRIOHDNVGHDOLQJZLWKKD]DUGRXVVLWXDWLRQVDQGUHFWLI\LQJDQ\GDPDJH
FDXVHG
± SURFHGXUHVIRUDOHUWLQJWKHVWDQGE\RUJDQL]DWLRQRUHPHUJHQF\FRQWUDFWRUDQGPRELOL]LQJHPHUJHQF\
HTXLSPHQWDQGPDWHULDOV
± DOLVWRIHPHUJHQF\HTXLSPHQWDQGPDWHULDOVDYDLODEOHIRUXVHLQGDPDJHOLPLWDWLRQDQGZKHQXQGHUWDNLQJ
UHSDLUV

7KHHPHUJHQF\SODQVKDOOEHFKHFNHGRQDUHJXODUEDVLVDQGDPHQGHGDVQHFHVVDU\

,IWKHH[LVWHQFHRIDOHDNIURPWKHSLSHOLQHLVVXVSHFWHGRUFRQILUPHGDFWLRQVKDOOEHWDNHQZLWKRXWGHOD\WRSUHYHQW
RUOLPLWWKHGDPDJHRUHIIHFWVWRWKHVXUURXQGLQJDUHDIURPDQ\OHDNDJH

/HDNVVKDOOEHQRWLILHGZLWKRXWGHOD\WRWKHDSSURSULDWHDJHQFLHVOLVWHGLQWKHHPHUJHQF\SODQLIWKHUHLVDGDQJHU
WRWKHSXEOLFDWODUJH

7KHFDXVHRIWKHLQFLGHQWVKDOOEHLQYHVWLJDWHGDQGDQ\SUHFDXWLRQVZKLFKQHHGWREHWDNHQWRSUHYHQWUHFXUUHQFH
VKDOOEHLGHQWLILHGDQGLPSOHPHQWHGZLWKRXWGHOD\7KHFDXVHVLGHQWLILHGWKHFRQFOXVLRQVGUDZQDQGWKHPHWKRGRI
UHSDLUVKDOOEHUHFRUGHGLQDQLQFLGHQWUHSRUW

 5HFRUGVDQGGRFXPHQWDWLRQ

7KHSODQVDQGGRFXPHQWDWLRQUHTXLUHGIRUWKHSLSHOLQHV\VWHPVKDOOLQHDFKFDVHEHNHSWXSWRGDWH

7KHUHFRUGVRIDOOPDLQWHQDQFHDQGHPHUJHQF\DFWLYLWLHVVKDOOEHUHWDLQHGIRUDIL[HGSHULRGRIWLPHWREH
GHWHUPLQHGE\WKHSLSHOLQHRSHUDWRURUDVUHTXLUHGE\OHJLVODWLRQ

‹%6,
3DJH
(1

 &RPPLVVLRQLQJ

&RPPLVVLRQLQJVKDOOEHFDUULHGRXWLQDFFRUGDQFHZLWK(1,QDGGLWLRQVSHFLDOFRQVLGHUDWLRQVKDOOEHJLYHQ
WRWKHQHHGWRGU\WKHSLSHOLQHSULRUWRRUDVSDUWRIFRPPLVVLRQLQJ

7KHFRPPLVVLRQLQJRSHUDWLRQVKDOOEHFRQGXFWHGLQVXFKDZD\WKDWDQ\JDVDLUPL[WXUHVSURGXFHGDUHUHPRYHG
VDIHO\DQGQRDLUUHPDLQVLQWKHSLSHOLQH7KHSLSHOLQHSUHVVXUHVKDOOWKHQEHLQFUHDVHGWRRSHUDWLQJOHYHOLQD
FRQWUROOHGPDQQHU

$IWHUFRQVWUXFWLRQDQGDIWHUVXIILFLHQWWLPHKDVHODSVHGWRDOORZSRODUL]DWLRQRIWKHSLSHOLQHWKHHIIHFWLYHQHVVRIWKH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

FDWKRGLFSURWHFWLRQV\VWHPRQWKHSLSHOLQHVKDOOEHWHVWHGWRHQVXUHDFFHSWDELOLW\

 'HFRPPLVVLRQLQJ

'HFRPPLVVLRQLQJVKDOOEHFDUULHGRXWLQDFFRUGDQFHZLWK(13LSHOLQHVHFWLRQVZKLFKDUHWDNHQRXWRI
VHUYLFHIRUDQH[WHQGHGSHULRGVKDOOLIQHFHVVDU\EHGHFRPPLVVLRQHG

 5HFRPPLVVLRQLQJ

5HFRPPLVVLRQLQJVKDOOEHFDUULHGRXWLQDFFRUGDQFHZLWK(1%HIRUHRUGXULQJWKHUHFRPPLVVLRQLQJRID
SLSHOLQHLWLVHVVHQWLDOWRYHULI\WKDWWKHZRUNKDVEHHQFRUUHFWO\H[HFXWHGDQGWHVWHG6SHFLDODWWHQWLRQVKDOOEH
SDLGWRZHOGLQJZRUNWLJKWQHVVFRDWLQJLQWHJULW\DQGFDWKRGLFSURWHFWLRQ

7KHSUHVVXUHVKDOOQRWEHDOORZHGWRH[FHHGSHUPLWWHGOLPLWVGXULQJUHILOOLQJRIWKHSLSHOLQH

'XULQJUHILOOLQJYDOYHVVKDOOEHRSHUDWHGLQDFFRUGDQFHZLWKDQDSSURYHGSURFHGXUHDQGLQFRRUGLQDWLRQZLWKWKH
DSSURSULDWHFRQWUROFHQWUHRUWKHORFDOVXSHUYLVRU

 0DLQWHQDQFHPRGLILFDWLRQDQGUHSDLU

 *HQHUDO

7KHSLSHOLQHRSHUDWRUVKDOOOD\GRZQSURFHGXUHVIRUPDLQWHQDQFHUHSDLUDQGPRGLILFDWLRQZRUNFDUULHGRXWRQWKH
SLSHOLQHV\VWHP

:RUNVKDOORQO\EHFDUULHGRXWRQWKHSLSHOLQHV\VWHPE\RUXQGHUWKHVXSHUYLVLRQRISHUVRQQHODXWKRUL]HGE\
SHUPLWVWRZRUN

7KHPDLQWHQDQFHLQWHUYDOVIUHTXHQFLHVVKDOOEHGHWHUPLQHGE\WKHRZQHURURSHUDWRUEDVHGRQLWVH[SHULHQFHRI
WKHSLSHOLQHFRQGLWLRQVDQGSDUWLFXODUFLUFXPVWDQFHVDQGEHDULQJLQPLQGWKHOHJLVODWLYHUHTXLUHPHQWV7KH
PDLQWHQDQFHLQWHUYDOVIUHTXHQFLHVVKDOODOVREHGHWHUPLQHGZLWKUHIHUHQFHWRWKHSDUWLFXODUORFDOVLWXDWLRQVDQG
GDPDJHSUREDELOLWLHV

$OOFRPSRQHQWVZKLFKDUHHVVHQWLDOWRWKHVDIHRSHUDWLRQRIWKHSLSHOLQHV\VWHPVKDOOEHLQVSHFWHGPDLQWDLQHG
FKHFNHGDQGRSHUDWHGLQDZD\WKDWVDIHJXDUGVWKHLUFRQGLWLRQDQGHQVXUHVSURSHUIXQFWLRQLQJ

(;$03/( %ORFNYDOYHVFKHFNYDOYHVDQGVDIHW\GHYLFHV

'XULQJWKHFRXUVHRIWKHZRUNGXHDFFRXQWVKDOOEHWDNHQRIDQ\WKLUGSDUW\VHUYLFHVLQWKHYLFLQLW\

‹%6,
3DJH
(1

 3LSHOLQHPRQLWRULQJDQGVXUYHLOODQFHRIWKLUGSDUW\DFWLYLWLHV

7KHSLSHOLQHVKDOOEHFRQWLQXRXVO\PRQLWRUHGDQGWKHGDWDUHFRUGHGZKHUHDSSURSULDWHDQGQHFHVVDU\
D  SLSHOLQHURXWHLQVSHFWLRQ
3LSHOLQHURXWHVVKDOOEHLQVSHFWHGDWUHJXODULQWHUYDOVHJWRFKHFNRQWKHFRQGLWLRQRIWKHSLSHOLQH
HDVHPHQWDQGWKHFRQGLWLRQRIWKHURXWHPDUNLQJV$Q\WKLUGSDUW\DFWLYLW\RQRUDGMDFHQWWRWKHSLSHOLQH
HDVHPHQWZKLFKFRXOGDIIHFWWKHLQWHJULW\RIWKHSLSHOLQHVKDOOEHLQYHVWLJDWHG
3LSHOLQHVVKDOOEHSK\VLFDOO\LQVSHFWHGLIWKHSLSHOLQHURXWHLQVSHFWLRQGHWHFWVFRQVWUXFWLRQRURWKHUDFWLYLW\
ZKLFKFDQKDYHMHRSDUGL]HGWKHVDIHW\RIWKHSLSHOLQHRUWKHVXUIDFHHTXLSPHQWRUGHWHFWVOHDNDJHIURPRU
GDPDJHWRWKHSLSHOLQHDQGWKHHTXLSPHQW7KHDSSURSULDWHDFWLRQVKDOOEHWDNHQZLWKRXWGHOD\
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

E  WLJKWQHVVRIWKHSLSHOLQH
7KHSLSHOLQHV\VWHPVKDOOEHFKHFNHGIRUJDVOHDNVDWUHJXODULQWHUYDOV
F  SLSHOLQHFRPSRQHQWV
3LSHOLQHFRPSRQHQWVDQGDVVRFLDWHGFRQWUROV\VWHPVZKLFKDUHHVVHQWLDOWRWKHVDIHRSHUDWLRQRIWKH
SLSHOLQHV\VWHPVKDOOEHFKHFNHGUHJXODUO\DQGDQ\SUREOHPVZKLFKDUHLGHQWLILHGVKDOOEHUHFWLILHGZLWKRXW
GHOD\
G  FRUURVLRQSUHYHQWLRQ
5HJXODUFKHFNVVKDOOEHFDUULHGRXWWRHQVXUHWKDWWKHFRUURVLRQSUHYHQWLRQV\VWHPVIRUEXULHGDQGDERYH
JURXQGSLSHZRUNDUHIXQFWLRQLQJVDWLVIDFWRULO\6SHFLDODWWHQWLRQVKDOOEHSDLGWRSLSHOLQHVZKLFKDUHVXEMHFW
WRLQWHUIHUHQFHRUVWUD\FXUUHQWV$Q\IDXOWVLQWKHFDWKRGLFSURWHFWLRQV\VWHPVKDOOEHUHFWLILHGRQFHWKHLU
FDXVHKDVEHHQGHWHUPLQHG
H  SUHVVXUHPRQLWRULQJ
)RUVDIHW\UHDVRQVWKHSLSHOLQHSUHVVXUHVKDOOEHUHFRUGHGDWUHSUHVHQWDWLYHSRLQWVRQWKHSLSHOLQH

 ([HFXWLRQRIUHSDLUVDQGPRGLILFDWLRQV

&DUHVKDOOEHWDNHQZKLOHWKHZRUNLVLQSURJUHVVWRHQVXUHWKDWQRKD]DUGRXVJDVPL[WXUHVDUHIRUPHG,IWKLV
FDQQRWEHJXDUDQWHHGDSSURSULDWHSUHFDXWLRQVVKDOOEHWDNHQWRSUHYHQWKD]DUGWRSHUVRQVDQGWKHVXUURXQGLQJ
DUHD

:HOGLQJFXWWLQJJULQGLQJDQGVLPLODUZRUNVPD\EHSHUIRUPHGRQDQLQVHUYLFHSLSHOLQHSURYLGHGWKHSLSHOLQH
GHVLJQWKHSLSHPDWHULDODQGWKHHVWDEOLVKHGWHFKQLTXHVSHUPLWVXFKZRUNWREHFDUULHGRXWVDIHO\

2QFRPSOHWLRQRIWKHZRUNWKHFRUURVLRQSURWHFWLRQ FRDWLQJFDWKRGLFSURWHFWLRQ VKDOOEHFDUHIXOO\UHLQVWDWHG

 :RUNLQYROYLQJFXWWLQJRIWKHSLSHOLQH

%HIRUHFXWWLQJWKHSLSHOLQHDSSURSULDWHWHFKQLFDOSUHFDXWLRQVVKDOOEHWDNHQWRHQVXUHWKDWWKHUHLVQRSRVVLELOLW\RI
DQXQFRQWUROOHGJDVLJQLWLRQ

%HIRUHZRUNFRPPHQFHVWKHVHFWLRQRISLSHOLQHVKDOOEHLVRODWHGGHSUHVVXUL]HGDQGLIQHFHVVDU\SXUJHG&DUH
VKDOOEHWDNHQWRHQVXUHWKDWQRJDVFDQHQWHUDQ\VHFWLRQRISLSHOLQHZKLFKKDVEHHQSXUJHG

 :RUNRQLQVHUYLFHSLSHOLQHV

:KHQZRUNLQJRQLQVHUYLFHSLSHOLQHVLQFOXGLQJZRUNLQYROYLQJWKHJHQHUDWLRQRIKHDWVXLWDEOHSUHFDXWLRQVVKDOO
EHWDNHQWRSUHYHQWWKHHVFDSHRIJDVDQGRWKHUKD]DUGV

,IWKHFKRVHQSURFHGXUHFDQQRWEHFDUULHGRXWRQWKHSLSHOLQHDWLWVQRUPDORSHUDWLQJSUHVVXUHWKHSUHVVXUHLQWKH
SLSHOLQHVHFWLRQLQTXHVWLRQVKDOOEHUHGXFHGLQDFRQWUROOHGPDQQHUWRWKHUHTXLUHGOHYHODQGVKDOOEHPDLQWDLQHG
LQWKDWVWDWHZKLOHWKHZRUNSURFHHGV

‹%6,
3DJH
(1

 2WKHUDQGVSHFLDOPDLQWHQDQFHDFWLYLWLHV

3LSHOLQHV\VWHPVFDQKDYHVHFWLRQVZKLFKUHTXLUHVSHFLDOPDLQWHQDQFHDWFHUWDLQSRLQWV2IWHQIXUWKHUSRLQWVDUH
LGHQWLILHGLQWHUPVRIWKHORFDOHQYLURQPHQWZKLFKLPSRVHVVSHFLDOGHVLJQUHTXLUHPHQWV

7KHVHVSHFLDOSRLQWVLQFOXGHDPRQJRWKHUV
± RYHUKHDGFURVVLQJV
± ZDWHUFURVVLQJV
± FDVLQJSLSHV
(;$03/( 8QGHUURDGVUDLOZD\VRURWKHUIHDWXUHV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± VHWWOHPHQWDUHDVODQGVOLGHV
± SLSHOLQHVLQPLQLQJVXEVLGHQFHDUHDV

D  2YHUKHDGFURVVLQJV
7KHSXUSRVHRIWKLVLQVSHFWLRQDFWLYLW\LVWRYHULI\
± WKHFRQGLWLRQRIWKHPHFKDQLFDOSURWHFWLRQRIWKHFURVVLQJ
± WKHFRQGLWLRQRIWKHSDLQWLQJRUFRDWLQJRIWKHSLSHOLQH
± WKHFRQGLWLRQRIWKHSLSHVXSSRUWV\VWHP

(;$03/( 6WDELOLW\LQWHJULW\SURWHFWLYHSDLQWLQJ

0DLQWHQDQFHDFWLYLWLHVDQGWKHLUIUHTXHQF\VKDOOEHFDUULHGRXWLQVXFKDZD\WKDWDOORYHUKHDGSDUWVRIWKH
SLSHOLQHDUHLQVSHFWHG6SHFLDODWWHQWLRQVKDOOEHJLYHQWRWKHWUDQVLWLRQDUHDEHWZHHQDWPRVSKHUHDQG
JURXQGZKLFKFDQEHVXEMHFWWRFRUURVLRQ

7KHLQVSHFWLRQDFWLYLWLHVDQGWKHLUIUHTXHQF\VKDOOWDNHLQWRDFFRXQWWKHSUHYDLOLQJDWPRVSKHULFFRQGLWLRQV

(;$03/( ,QFRDVWDORULQGXVWULDODUHDV

E  :DWHUFURVVLQJV
7KHSXUSRVHRIWKLVLQVSHFWLRQDFWLYLW\LVWRYHULI\
± WKHVWDELOLW\RIWKHEHGDQGEDQNV
± EDQNHURVLRQRUGHSRVLWLRQRIPDWHULDO
± WKHFRQGLWLRQRIWKHSLSHOLQHDQGLWVFRYHULQJ

7KHLQVSHFWLRQVKDOOLQFOXGHPRQLWRULQJWKHZDWHUGHSWKDQGUHFRUGLQJVXFKHYHQWVDVIORRGLQJDQGLWV
HIIHFWVRQWKHEDQNV

,QVSHFWLRQDQGPDLQWHQDQFHZRUNVKRXOGEHGHILQHGLQFRQVXOWDWLRQZLWKWKHQDWLRQDOORFDODJHQFLHVRUWKH
OLFHQVLQJDXWKRULW\

F  &DVLQJSLSHV
7KHSXUSRVHRIWKLVLQVSHFWLRQDFWLYLW\LVWRYHULI\
± WKHFRQGLWLRQRIWKHFDVLQJSLSH JURXQGPRYHPHQW DQGZKHUHUHOHYDQWWKHLQWHUQDOSLSH
± WKHDEVHQFHRIHOHFWULFDOFRQWDFWEHWZHHQWKHFDVLQJDQGSLSH

G 6HWWOHPHQWODQGVOLGHDUHDV
6SHFLDOFDUHVKDOOEHWDNHQDWSRLQWVZKHUHWKHSLSHOLQHURXWLQJUHSRUWVLQGLFDWHRULWLVVXEVHTXHQWO\
GHWHUPLQHGWKDWLQFUHDVHGORDGVFDQRFFXUEHFDXVHRIVHWWOHPHQWRUPRYHPHQWVRIJURXQG7KLVPRYHPHQW
FDQEHGHWHFWHGE\VXUYH\LQJWKHSLSHOLQHURXWHDQGLIQHFHVVDU\E\LQVWUXPHQWEDVHGPRQLWRULQJRIWKH
SLSHOLQHDQGRUWKHJURXQG6XLWDEOHSUHFDXWLRQVVKDOOEHWDNHQWRHQVXUHWKDWSHUPLWWHGOLPLWVDUHQRW
H[FHHGHG

H  3LSHOLQHVLQPLQLQJVXEVLGHQFHDUHDV
,QWKHFDVHRISLSHOLQHVLQPLQLQJVXEVLGHQFHDUHDVWKHSLSHOLQHRSHUDWRUVKDOOPDNHUHJXODUFKHFNVWR
LGHQWLI\DQ\GHWULPHQWDOHIIHFWVRQSLSHOLQHRSHUDWLRQ,IDQ\GHWULPHQWDOHIIHFWLVH[SHFWHGWKHSLSHOLQH
RSHUDWRUVKDOOGHWHUPLQHWKHDFWLRQUHTXLUHGDIWHUWDNLQJWKHRSLQLRQRIDFRPSHWHQWHQJLQHHU

‹%6,
3DJH
(1

 $EDQGRQPHQW

7RSUHYHQWDQDEDQGRQHGSLSHOLQH RUVHFWLRQ EHFRPLQJDVRXUFHRIGDQJHURUQXLVDQFHLWVKDOOEH


GHFRPPLVVLRQHGDQGLVRODWHGIURPWKHSLSHOLQHV\VWHP7KHDEDQGRQHGSLSHOLQHRUVHFWLRQFDQEHILOOHGZLWKDQ
LQHUWJDVRURWKHUDSSURSULDWHVXEVWDQFH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

‹%6,
3DJH
(1

$QQH[$ LQIRUPDWLYH

%LEOLRJUDSK\

(1 *DVVXSSO\V\VWHPV1DWXUDOJDVPHDVXULQJVWDWLRQV)XQFWLRQDOUHTXLUHPHQWV
(1 *DVVXSSO\V\VWHPV±8QGHUJURXQGJDVVWRUDJH3DUW)XQFWLRQDOUHFRPPHQGDWLRQVIRU
VXUIDFHIDFLOLWLHV
(1,62 4XDOLW\V\VWHPV0RGHOIRUTXDOLW\DVVXUDQFHLQGHVLJQGHYHORSPHQWSURGXFWLRQLQVWDOODWLRQDQG
VHUYLFLQJ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

(1,62 4XDOLW\V\VWHPV0RGHOIRUTXDOLW\DVVXUDQFHLQSURGXFWLRQLQVWDOODWLRQDQGVHUYLFLQJ
(1,62 4XDOLW\V\VWHPV0RGHOIRUTXDOLW\DVVXUDQFHLQILQDOLQVSHFWLRQDQGWHVW
(1,62 4XDOLW\PDQDJHPHQWDQGTXDOLW\V\VWHPHOHPHQWV3DUW*XLGHOLQHV
(1 *DVVXSSO\V\VWHPV3LSHOLQHVIRUDPD[LPXPRSHUDWLQJSUHVVXUHXSWRDQGLQFOXGLQJEDU
3DUW6SHFLILFIXQFWLRQDOUHFRPPHQGDWLRQVIRUSRO\HWK\OHQH 023XSWRDQGLQFOXGLQJEDU
(1 *DVVXSSO\V\VWHPV3LSHOLQHVIRUPD[LPXPRSHUDWLQJSUHVVXUHXSWRDQGLQFOXGLQJEDU
3DUW5HQRYDWLRQ
(1 *DVVXSSO\V\VWHPV*DVSUHVVXUHUHJXODWLQJLQVWDOODWLRQVRQVHUYLFHOLQHV)XQFWLRQDO
UHTXLUHPHQWV
,62 1DWXUDOJDV4XDOLW\GHVLJQDWLRQ

‹%6,
3DJH
(1

$QQH[% LQIRUPDWLYH

6HWWOHPHQWDUHDV

% *HQHUDO

6HWWOHPHQWDUHDVDUHFKDUDFWHUL]HGE\WKHRFFXUUHQFHRIKRORFHQHVWUDWDEHQHDWKWKHSLSHOLQH

$SLSHOLQHFDQEHVXEMHFWWRVHWWOHPHQWZKHUHLWFURVVHVDQHOHYDWHGVHFWLRQZKLFKKDVXQGHUO\LQJOD\HUVRIVRIW
VRLO7KHDPRXQWRIVHWWOHPHQWGHSHQGVXSRQWKHWKLFNQHVVGHSWKDQGW\SHRIWKHVRIWVRLOOD\HUVWRJHWKHUZLWKWKH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

KHLJKWDQGDJHRIWKHHOHYDWHGVHFWLRQ7KHFRQVROLGDWLRQSURFHVVFDQWDNHPDQ\\HDUV

(;$03/( $QHOHYDWHGVHFWLRQFDQEHDG\NHRUURDG

)XUWKHUUDLVLQJDQGRUH[WHQVLRQRIWKHHOHYDWHGVHFWLRQRUORZHULQJRIWKHJURXQGZDWHUOHYHOLQLWLDWHVDQHZ
FRQVROLGDWLRQSURFHVV

6HWWOHPHQWLQWKHFDVHRIHOHYDWHGVHFWLRQVZLWKVRIWVRLOOD\HUVEHQHDWKOHDGVWRKLJKVWUHVVHVDWWKHWUDQVLWLRQWR
WKHHOHYDWHGVHFWLRQRUDWWKHWUDQVLWLRQIURPIL[HGVXSSRUW IRUH[DPSOHDWVWDWLRQV WRDILHOGVHFWLRQ

% 3URFHGXUH

3LSHOLQHVHFWLRQVZKHUHGLIIHUHQWLDOVHWWOHPHQWFDQEHH[SHFWHGVKRXOGEHLGHQWLILHG

(;$03/( &URVVLQJVZLWKG\NHVDQGHOHYDWHGDUHDV

7KHIROORZLQJLQIRUPDWLRQVKRXOGEHDYDLODEOH

± JHQHUDOJHRWHFKQLFVGDWDDQGRFFXUUHQFHQDWXUHSURSHUWLHVGHSWKDQGWKLFNQHVVRIVRIWVRLOOD\HUV
± JHQHUDOJHRK\GURORJLFDODQGSLs]RPHWULFGDWD
± LQIRUPDWLRQIURPORFDODJHQFLHVDXWKRULWLHVRQVHWWOHPHQW

7KHGLIIHUHQWLDOVHWWOHPHQWIRUWKHFURVVLQJVKRXOGEHDVVHVVHGRQWKHEDVLVRIWKHDYDLODEOHGDWD,QFDVHRIGRXEW
FRQVROLGDWLRQWHVWVVKRXOGEHSHUIRUPHGRQUHSUHVHQWDWLYHVRLOVDPSOHV

7KHVHWWOHPHQWRIWKHVRLOOD\HUVFDQEHFDOFXODWHGXVLQJFRQYHQWLRQDOIRUPXODH OLWHUDWXUH>@>@DQG>@ 

% &RQVWUXFWLRQVHWWOHPHQW

,QDGGLWLRQWRVHWWOHPHQWGXHWRFRQVROLGDWLRQDOORZDQFHVKRXOGDOVREHPDGHIRUVHWWOHPHQWGXHWRFRQVWUXFWLRQ
DVDUHVXOWRIERWKGLVWXUEDQFHRIWKHVRLODQGWKHXVHRIGLIIHUHQWFRQVWUXFWLRQPHWKRGV

± ,QWKHFDVHRIERUHGMDFNHGFURVVLQJVDQDEUXSWGLIIHUHQFHLQVHWWOHPHQWDWWKHSRLQWRIWUDQVLWLRQIURP
ERULQJWRRSHQWUHQFKFDQEHDVVXPHG7KHSLSHODLGLQWKHWUHQFKZLOOEHVXEMHFWWRJUHDWHUFRQVWUXFWLRQ
VHWWOHPHQWWKDQWKHERUHGMDFNHGSLSH7KHGLIIHUHQFHLQVHWWOHPHQWLVGHVLJQDWHGDV;
± ,QWKHFDVHRISLSHOLQHVODLGLQRSHQWUHQFKHVLWFDQEHDVVXPHGWKDWGLIIHUHQFHVLQFRQVWUXFWLRQVHWWOHPHQW
ZLOORFFXUGXHWRQRQXQLIRUPVRLOKDQGOLQJDORQJWKHWUHQFK)RUFDOFXODWLRQSXUSRVHVLWLVDVVXPHGWKDWWKLV
FRQVWUXFWLRQVHWWOHPHQWLQFUHDVHVJUDGXDOO\IURPWR;PPRYHUDGLVWDQFH/DQGEDFNWR7KHGLVWDQFH
FRYHUHGE\WKHFDOFXODWLRQLVWKHUHIRUHHTXDOWR/
± 7KHYDOXHVIRU;GHSHQGRQVRLOW\SH FOD\SHDWRUVDQGGHJUHHRIFRQVROLGDWLRQFRPSDFWLRQ FRQVWUXFWLRQ
PHWKRG GU\ZHW DQGSLSHOLQHGLDPHWHU

9DOXHVIRU;FDQEHWDNHQIURPOLWHUDWXUH>@

,IFRQVLGHUDEOHVZHOOLQJRFFXUVGXULQJH[FDYDWLRQWKHYDOXHVRI;JLYHQIRUFRQVWUXFWLRQVHWWOHPHQWDUH
LQFUHDVHGE\WKHDPRXQWRIVZHOOLQJ

(;$03/( ,QWKHFDVHRIDERUHGMDFNHGFURVVLQJ

‹%6,
3DJH
(1

± /HQJWK/VKRXOGQRWEHOHVVWKDQPRUPRUHWKDQP%HWZHHQWKHVHYDOXHV/ LQPP FDQEH


FDOFXODWHGE\PHDQVRIWKHIRUPXOD

(O
/  ™ 
'N Y

ZKHUH
' LVWKHRXWVLGHGLDPHWHULQPLOOLPHWUHV PP 
, LVWKHPRPHQWRILQHUWLDRIWKHSLSHOLQHLQPLOOLPHWUHVWRWKHSRZHURIIRXU PP 
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

( LVWKHPRGXOXVRIHODVWLFLW\IRUWKHSLSHPDWHULDOLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
NY LVWKHYHUWLFDOPRGXOXVRIVXEJUDGHUHDFWLRQLQQHZWRQVSHUFXELFPLOOLPHWUH 1PP  

( NY
s E =  ; 
7 QRP

4U =  ;' N Y

4 ] =  ;' N Y

ZKHUH
E LVWKHORQJLWXGLQDOEHQGLQJVWUHVVLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
4U LVWKHVRLOUHDFWLRQLQQHZWRQVSHUPLOOLPHWUH 1PP  )LJXUH% 
4] LVWKHVHWWOHPHQWORDGLQQHZWRQVSHUPLOOLPHWUH 1PP  )LJXUH% 
7QRP LVWKHQRPLQDOZDOOWKLFNQHVVLQPLOOLPHWUHV PP 

% 6WUHQJWKFDOFXODWLRQ

7KHDQDO\VLVFDUULHGRXWRQEXULHGSLSHOLQHVHFWLRQVFDQWDNHRQHRIWZRIRUPV

± VWUHQJWKFDOFXODWLRQLQDFFRUGDQFHZLWKWKHEHDPPRGHO % 
± VLPSOLILHGVWUHQJWKFDOFXODWLRQ % 

% ,QWHUDFWLRQEHWZHHQSLSHDQGVRLOSLSHOLQHFRQVLGHUHGDVEHDP

7KHSLSHOLQHEHKDYHVDVDEHDPLIWKHVRLOLVVXEMHFWWRGLIIHUHQWLDOVHWWOHPHQWRUVHWWOHPHQWDVDUHVXOWRI
FRQVWUXFWLRQDFWLYLW\ )LJXUH% 

‹%6,
3DJH
(1
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)LJXUH%3LSHOLQHFRQVLGHUHGDVEHDP

$VDUHVXOWRIVHWWOHPHQWRIWKHVRLOEHQHDWKWKHSLSHOLQHWKHVRLODERYHWKHSLSHOLQHZLOOIRUFHLWWRIROORZWKHVRLO
PRYHPHQWIXOO\RUSDUWLDOO\GHSHQGLQJRQWKHVWLIIQHVVRIWKHSLSHOLQHVHFWLRQ

7KHORDGUHTXLUHGWRDFKLHYHWKLVLVGHVLJQDWHGDV´VHWWOHPHQWORDG´ 4] LWLVQRWWUDQVPLWWHGGLUHFWO\ E\WDQJHQWLDO


PRPHQWVDQGIRUFHVLQWKHSLSHZDOO WRWKHVXEVRLOEXWLVLQVWHDGWUDQVPLWWHGWREHGGLQJ]RQHVWROHIWDQGULJKWRI
WKHVHWWOHPHQW]RQH

,QWKHSLSHWKLVFUHDWHVD[LDOEHQGLQJPRPHQWVDQGWUDQVYHUVHIRUFHV,WFDQDOVRJLYHULVHWRWHQVLOHIRUFHVLQWKH
D[LDOGLUHFWLRQ FDWHQDU\HIIHFW 

,QWKHEHGGLQJ]RQHVWKLVJLYHVULVHWRKLJKHUVRLOUHDFWLRQVWRDFFRPPRGDWHWKHVHWWOHPHQWORDG

7KHPDJQLWXGHRIWKHVHWWOHPHQWORDGDQGVRLOUHDFWLRQVLVOLPLWHGE\WKHDPRXQWRIVHWWOHPHQWWKHVWLIIQHVVRIWKH
SLSHOLQHDQGWKHVWLIIQHVVRIWKHVRLO

7KHXSSHUOLPLWIRUWKHVHWWOHPHQWORDG4]LVHTXDOWRWKHVXPRIWKHXSSHUOLPLWVRIWKHHDUWKSUHVVXUHDFWLQJRQWKH
SLSH SDVVLYHHDUWKSUHVVXUH DQGWKHZHLJKWRIWKHSLSHOLQH 4S4Z 

$VORQJDV4]LVEHORZWKHQHXWUDOHDUWKSUHVVXUH4QWKHQLQDGGLWLRQWRWKHLQGLUHFWWUDQVIHURI4] DVVKRZQLQ
)LJXUH% WRWKHEHGGLQJ]RQHV 4ULQ)LJXUH% WKHUHPDLQGHURIWKHORDG 4Q4Z4] LVWUDQVPLWWHGGLUHFWO\
WRWKHVRLOEHQHDWKWKHSLSHOLQH

‹%6,
3DJH
(1
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)LJXUH%6HWWOHPHQWORDGDQGVRLOUHDFWLRQ

6WUHQJWKFDOFXODWLRQVVKRXOGEHFDUULHGRXWLQDFFRUGDQFHZLWKDQGXVLQJWKHUHOHYDQWVRLOGDWDLQFOXGLQJ
WKHFRQWLQJHQF\IDFWRUVDFFRUGLQJWR7DEOH*

7KHFRQWLQJHQF\IDFWRUIRUFRQVROLGDWLRQVHWWOHPHQW PHDQYDOXH LVLIWKHSUHGLFWHGVHWWOHPHQWLVEDVHGRQWZR


UHSUHVHQWDWLYHVDPSOHV,ILWLVEDVHGRQWKUHHUHSUHVHQWDWLYHVDPSOHVRIHDFKFRPSUHVVLEOHVRLOOD\HUWKH
FRQWLQJHQF\IDFWRULV,IWKHUDWHRIVHWWOHPHQWLVPRQLWRUHGZLWKUHIHUHQFHWRIL[HGPDUNHUVWKHFRQWLQJHQF\
IDFWRUPD\EHDGMXVWHGWR,IWKHJHRWHFKQLFVRIWKHDUHDDQGWKHYDULDWLRQRIWKHVRLOPHFKDQLFVSURSHUWLHVDUH
ZHOONQRZQLWLVQRWQHFHVVDU\WREDVHWKHFRQWLQJHQF\IDFWRURQWKHQXPEHURIVDPSOHVWDNHQ,WVKRXOGEHFOHDUO\
VWDWHGZKHWKHUWKHSUHGLFWHGVHWWOHPHQWVDUHPHDQYDOXHVRUFKDUDFWHULVWLFYDOXHV VHHDOVR$QQH[*FODXVH* 

% 6LPSOLILHGFDOFXODWLRQPHWKRG

2QWKHEDVLVRIWKHUHVXOWVRIHDUOLHUUHVHDUFKIXOOFDOFXODWLRQFDQEHGLVSHQVHGZLWKIRUFHUWDLQSLSHOLQHVHFWLRQV
SURYLGHGDQXPEHURIFRQGLWLRQVDUHPHW DQGLWLVVXIILFLHQWWRFDOFXODWHWKHKRRSVWUHVVGXHWRLQWHUQDOSUHVVXUH
LQDFFRUGDQFHZLWKZLWK

D IRUFURVVFRXQWU\VHFWLRQV IR 
E IRUFURVVLQJVZLWKURDGVGLWFKHVFDQDOVDQGQDWXUDOZDWHUFRXUVHVZLWKRXWIORRGGHIHQFHV
± RSHQH[FDYDWLRQ IR 
± ERULQJMDFNLQJ IR 

7KHVLPSOLILHGFDOFXODWLRQPHWKRGFDQEHXVHGLIWKHIROORZLQJFRQGLWLRQVDUHPHW

± '7PLQUDWLR
5W 1PP '7PLQ”
5W 1PP '7PLQ”
5W 1PP '7PLQ”
5W 1PP '7PLQ”
± 'HSWKRIFRYHURYHUWRSRISLSHOLQHPD[LPXPP7KHUHTXLUHPHQWVUHODWLQJWRGHSWKRIFRYHUDUHQRW
DSSOLFDEOHLILWFDQEHGHPRQVWUDWHGWKDWWKHHIIHFWLYHVWUHVVDWWKHGHSWKRIWKHWRSRIWKHSLSHGRHVQRW
H[FHHGN1P
± 7KHVSHFLILHGZDOOWKLFNQHVVXVHGLQWKHVHFWLRQLVHTXDOWRRUJUHDWHUWKDQPP
± 'LIIHUHQWLDOVHWWOHPHQWIURPFRQVROLGDWLRQGRHVQRWH[FHHGPP7KLVGLIIHUHQWLDOVHWWOHPHQWVKRXOG
LQFUHDVHJUDGXDOO\IURP]HURWRWKHPD[LPXPYDOXHDQGEDFNWR]HURRYHUDGLVWDQFHRIDWOHDVW™P
DQGWKHFRQVWUXFWLRQVHWWOHPHQWGRHVQRWH[FHHGWKHYDOXHVWKDWFDQEHH[SHFWHGLQQRUPDOSLSHOLQH
FRQVWUXFWLRQSUDFWLFHZKHUHQRVSHFLDOPHDVXUHVDUHWDNHQ
± 7KHSLSHOLQHGRHVQRWFURVVSRWHQWLDOIUDFWXUHSODQHVRUDUHDVRIPLQLQJVXEVLGHQFH
± 7KHSLSHOLQHVHFWLRQLQYROYHGGRHVQRWLQFOXGHEHQGVVPDOOHUWKDQ'

‹%6,
3DJH
(1

± 7KHPD[LPXPGLIIHUHQFHEHWZHHQLQVWDOODWLRQWHPSHUDWXUHDQGPD[LPXPRUPLQLPXPWHPSHUDWXUHDV
DSSOLFDEOHVKRXOGQRWH[FHHG•&
7KHRYHUDOOWHPSHUDWXUHUDQJHOLHVEHWZHHQ±•&DQG•&:LWKUHJDUGWRIURVWKHDYHUHIHUHQFHLV
PDGHWR$QQH['

:KHUHEHQGVRIOHVVWKDQ'DUHXVHGWKHIROORZLQJDGGLWLRQDORUDOWHUQDWLYHFULWHULDDSSO\

± 7KHPD[LPXPGLIIHUHQFHEHWZHHQLQVWDOODWLRQWHPSHUDWXUHDQGPD[LPXPRUPLQLPXPWHPSHUDWXUHZKHQ
KRUL]RQWDOEHQGVDUHSUHVHQWGRHVQRWH[FHHG•& LQVWHDGRI•& IRUGLDPHWHUVVPDOOHUWKDQRU
HTXDOWRPP
± 7KHPLQLPXPGLVWDQFHEHWZHHQKRUL]RQWDOEHQGV'VPDOOHUWKDQPPLVP
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)RUERUHGMDFNHGFURVVLQJVLQVWDOOHGIURPZRUNLQJSLWVDQGZKHUHEHQGVRIOHVVWKDQ'ZLOOEHLQVWDOOHGLQWKH
ZRUNLQJSLWWKHIROORZLQJDGGLWLRQDORUDOWHUQDWLYHFULWHULDDSSO\

± :DOOWKLFNQHVVFDOFXODWLRQIRUEHQGVDVGHVFULEHGLQZLWKIR DVIRUWKHFURVVLQJ
± '7PLQUDWLR VWUDLJKWSLSH
5W 1PP '7PLQ”
5W 1PP '7PLQ”
5W 1PP '7PLQ”
5W 1PP '7PLQ”
± :KHUH'VPDOOHUWKDQPPWKHEHQGLVORFDWHGRQWKHILHOGVLGHRIWKHZRUNLQJSLW

% 0RQLWRULQJ

7KHSLSHOLQHVKRXOGEHSHULRGLFDOO\FKHFNHGIRUVHWWOHPHQWLQDUHDVZKHUHVHWWOHPHQWQHFHVVLWDWHVWKHUDLVLQJRI
G\NHVRUWKHUHGXFWLRQLQJURXQGZDWHUOHYHOVDQGDWURDGRURWKHUFURVVLQJV7KHUHVXOWVVKRXOGEHFRPSDUHG
DJDLQVWWKRVHSUHGLFWHGLQWKHRULJLQDOJHRWHFKQLFDOVWXG\

% $FWLRQLQWKHHYHQWRIWKHDOORZDEOHOLPLWYDOXHVEHLQJH[FHHGHG

,IWKHDOORZDEOHOLPLWYDOXHVDUHH[FHHGHGWKHIROORZLQJDFWLRQLVSRVVLEOH

± GXULQJGHVLJQ
‡ SUHORDGWKHVWULSDUHDXQGHUFRQVLGHUDWLRQEHIRUHFRQVWUXFWLRQWRJLYHSUHVHWWOHPHQW
‡ LQWKHFDVHRIUDLVHGDUHDVDYRLGSLOHGVXSSRUWVLISRVVLEOH
± GXULQJDIWHULQVWDOODWLRQ
‡ H[FDYDWHWKHSLSHOLQHVHFWLRQXQGHUFRQVLGHUDWLRQOLIWLWSODFHVRLOXQGHUQHDWKWKHSLSHOLQHDQG
FRPSDFWLW
‡ UHSODFHWKHVRLOLQWKHH[FDYDWLRQZLWKDOLJKWZHLJKWPDWHULDOWRUHGXFHVHWWOHPHQW

% /LWHUDWXUH

>@ .7HU]DJKL5%3HFN³6RLO0HFKDQLFVLQ(QJLQHHULQJ3UDFWLFH´-RKQ:LOH\ 6RQV,QF1HZ<RUN



>@ +):LQWHUNRUQ+VDL<DQJ³)RXQGDWLRQ(QJLQHHULQJ+DQGERRN´9DQ1RVWUDQG5HLQKROG1HZ<RUN
/RQGRQ
>@ $:.RSSHMDQ³$)RUPXODFRPELQLQJWKH7HU]DJKL/RDG&RPSUHVVLRQ5HODWLRQVKLSDQGWKH%XLVPDQ
6HFXODU7LPH(IIHFW´3URF6HFRQG&RQJUHVVRIWKH,QWHUQDWLRQDO6RFLHW\IRU6RLO0HFKDQLFVDQG
)RXQGDWLRQ(QJLQHHULQJ
>@ +-$0+HUJDUGHQ³(QNHOHJHRWHFKQLVFKHDVSHFWHQELMGHDDQOHJYDQOHLGLQJHQ6RPHJHRWHFKQLFDO
DVSHFWVRISLSHOLQHFRQVWUXFWLRQ´ LQ'XWFK 5HSRUW&2'HOIW*HRWHFKQLFV0DUFK
>@ '3RXOXV³(ODVWLFVROXWLRQVIRUVRLODQGURFNPHFKDQLFV´-RKQ:LOH\ 6RQV,QF1HZ<RUN
>@ &'HVDL³1XPHULFDOPHWKRGVLQJHRWHFKQLFDOHQJLQHHULQJ´0F*UDZ+LOO%RRN&RPSDQ\1HZ<RUN


‹%6,
3DJH
(1

$QQH[& LQIRUPDWLYH

0LQLQJVXEVLGHQFH

& *HQHUDO

/DQGVXUIDFHVXEVLGHQFHRFFXUVZKHQPDWHULDOLVUHPRYHGIURPWKHXQGHUO\LQJVWUDWDDVGXULQJORQJZDOOPLQLQJ

7KHPD[LPXPVXEVLGHQFHLVOHVVWKDQWKHSODQQHGVHDPKHLJKWEHFDXVH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± WKHRYHUO\LQJURFNIUDFWXUHVDVLWVXEVLGHVFUHDWLQJYRLGVZKLFKUHGXFHWKHYROXPHRIPDWHULDOUHTXLUHGWR
UHSODFHWKHH[FDYDWHGPLQHUDOV
± PDWHULDOLV³GUDZQ´IURPRXWVLGHWKHPLQHGDUHD7KLV³GUDZ´H[WHQGVWKHDUHDDIIHFWHGE\VXEVLGHQFH

%XULHGSLSHOLQHVIROORZWKHVHPRYHPHQWVZLWKLQOLPLWVDVRYHUEXUGHQSUHVVXUHFKDQJHVDQGIULFWLRQEHWZHHQWKH
SLSHVXUIDFHDQGWKHEDFNILOOWUDQVIHUVODWHUDOHDUWKSUHVVXUH

& 3URFHGXUH

3URMHFWHGPLQLQJRSHUDWLRQVDORQJWKHJHQHUDOURXWHRIWKHSLSHOLQHVKRXOGEHLGHQWLILHG

7KHIROORZLQJLQIRUPDWLRQVKRXOGEHFRPHDYDLODEOH

± SDQHOGLPHQVLRQV ZLGWKGHSWKDQGWKLFNQHVV DQGRULHQWDWLRQLQUHODWLRQWRWKHSLSHOLQH


± JHRORJLFDOGHWDLOV
± SHULRGFRYHUHGE\PLQLQJSURJUDPPH
± ROGZRUNLQJV&RQVLGHUDWLRQVKRXOGEHJLYHQWRDVVHVVLQJUHVLGXDOVWUHVVOHYHOVIURPSUHYLRXVJURXQG
PRYHPHQWV

%DVHGRQWKHLQIRUPDWLRQDYDLODEOHWKHHIIHFWRIDOOSURMHFWHGPLQLQJRSHUDWLRQV ODQGVXUIDFHVXEVLGHQFHDQG
KRUL]RQWDOJURXQGGLVSODFHPHQW VKRXOGEHDVVHVVHG

$OOUHVWUDLQWVZKLFKUHVWULFWUHODWLYHPRYHPHQWEHWZHHQWKHSLSHDQGWKHJURXQGVKRXOGEHGHWHUPLQHG

& 6WUHQJWKFDOFXODWLRQ

'HVLJQFDOFXODWLRQVVKRXOGEHFDUULHGRXWLQDFFRUGDQFHZLWKDQGXVLQJWKHUHOHYDQWGDWD

5HVLGXDOVWUHVVHVIURPSUHYLRXVORDGLQJRUSUHYLRXVVXEVLGHQFHVKRXOGEHDVVHVVHGDQGPD\QHHGWREHDGGHG
7KHGHWHUPLQDWLRQRIWKHUHVXOWDQWVWUHVVVKRXOGEHFDUULHGRXWIRUWKHZKROHVHFWLRQRISLSHOLQHWRDSRLQWEH\RQG
WKHPLQHGDUHDFRYHULQJERWKFRPSUHVVLYHDQGWHQVLOHVWUHVVHV

& $FWLRQLQWKHHYHQWRIWKHDOORZDEOHOLPLWYDOXHVEHLQJH[FHHGHG

,IWKHDOORZDEOHOLPLWYDOXHVDUHH[FHHGHGRULIWKHUHLVDSRVVLELOLW\RIWKHLUEHLQJH[FHHGHGGXULQJWKHPLQLQJ
RSHUDWLRQVWKHIROORZLQJDFWLRQLVSRVVLEOH

± UHSODFHPHQWRIEDFNILOOZLWKVHOHFWHGORZIULFWLRQPDWHULDO
± XVHRIH[SDQVLRQEHQGVRUVOLGLQJMRLQWV
± UHILQHPHQWRISLSHJHRPHWU\
± H[FDYDWLRQRIORQJOHQJWKVRISLSHOLQHOHDYLQJWKHPRSHQIRUWKHGXUDWLRQRIPLQLQJRSHUDWLRQVWRLVRODWH
WKHSLSHIURPWKHJURXQGPRYHPHQWVFDXVLQJWKHSUREOHP7KLVDFWLRQVKRXOGRQO\EHUHJDUGHGDVD
VKRUWWHUPPHDVXUHEHDULQJLQPLQGWKHHQYLURQPHQWDODQGVHFXULW\SUREOHPVDQGWKHHIIHFWVRIFKDQJHV
LQSLSHOLQHRSHUDWLQJWHPSHUDWXUH
± UHYLVLRQRIWKHRSHUDWLQJGDWD
± VWUDLQPHDVXUHPHQWDQGFXWWLQJWRUHOHDVHVWUHVV

‹%6,
3DJH
(1

& 0RQLWRULQJ

:KHUHPLQLQJDFWLYLWLHVDUHNQRZQWRDIIHFWSLSHOLQHVRUVWDWLRQVWKHUHVKRXOGEHIUHTXHQWFRQWDFWZLWKWKHPLQLQJ
FRPSDQ\

,WLVLPSRUWDQWWRKDYHSUHFLVHLQIRUPDWLRQRQWKHDVEXLOWSRVLWLRQRIWKHSLSHOLQHVHFWLRQLQUHODWLRQWRWKHVWUHVVHV
DOUHDG\SUHVHQWLQWKHSLSHOLQHVHFWLRQ

,IKLJKVWUHVVHVDUHSUHGLFWHGDQGJLYHQWKHXQFHUWDLQWLHVLQKHUHQWLQPLQLQJRSHUDWLRQVWUHVVPHDVXUHPHQWV
VKRXOGEHSHUIRUPHGDWSRLQWVRIKLJKVWUHVVDQGJURXQGPRYHPHQWVVKRXOGEHPRQLWRUHGWRDVVHVVWKHHIIHFWVDV
PLQLQJSURFHHGV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

& /LWHUDWXUH

>@ %1:KLWWDNHU'-5HGGLVK³6XEVLGHQFH2FFXUUHQFH3UHGLFWLRQDQG&RQWURO´'HYHORSPHQWLQ
*HRWHFKQLFDO(QJLQHHULQJ(OVHYLHU
>@ 6XEVLGHQFH(QJLQHHU
V+DQGERRN1DWLRQDO&RDO%RDUG6HFRQG 5HYLVHG (GLWLRQ0LQLQJ'HSDUWPHQW
8. 
>@ '5&ROH1&5RJHUV³0LQLQJRSHUDWLRQDOH[SHULHQFH´SUHVHQWHGWRWKH0LGODQGV*DV$VVRFLDWLRQ

>@ *'UDVGR³$XVZLUNXQJHQGHVXQWHUWlJLJHQ%HUJEDXVDXI:DVVHUOHLWXQJ´5,QWHUQDWLRQDO  
+HIW$SULO
>@ 5+QLQJ+*HLVVPDQQ³8EHUOHJXQJHQ]XP(LQVDW]YRQ*DVGUXFNOHLWXQJHQDXV3(KDUWLQ
%HUJVHQNXQJVJHELHWHQ´JZIJDVHUGJDV  1U6
>@ +*HLOHQNHXVHU³8QWHUVXFKXQJHQEHUGLH%HZHJXQJYRQ5RKUOHLWXQJHQLQGHU(UGHXQWHUGHP(LQIOX‰
YRQlX‰HUHQ.UlIWHQ´*HVDPPHOWH%HULFKWHDXV%HWULHEXQG)RUVFKXQJGHU5XKUJDV$NWLHQJHVHOOVFKDIW
1U
>@ :.LZLWW³hEHUGDV9HUKDOWHQYRQHUGYHUOHJWHQ5RKUOHLWXQJHQXQWHUDNXWHU%HUJEDXHLQZLUNXQJ´
'LVVHUWDWLRQ7HFKQLVFKH8QLYHUVLWlW&ODXVWKDO

‹%6,
3DJH
(1

$QQH[' LQIRUPDWLYH

)URVWKHDYH

' *HQHUDO

)URVWKHDYHRFFXUVLIWKHWHPSHUDWXUHRIWKHVRLODWWKHGHSWKRIWKHSLSHOLQHVHFWLRQXQGHUFRQVLGHUDWLRQIDOOVEHORZ
•&RULIWKHVRLOLVRWKHUZLVHVXVFHSWLEOHWRIURVWKHDYH

(;$03/( *DVWHPSHUDWXUHLVEHORZ•&RUIURVWSHQHWUDWLRQGHSWKH[FHHGVWKHGHSWKRIFRYHU
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

'LIIHUHQWLDOKHDYHDORQJWKHSLSHOLQHUHVXOWVLQVWUHVVHVDPRQJRWKHUV

± DWFURVVLQJVZKHUHIURVWSHQHWUDWLRQLVGHHSHVWDVDWVPDOOIRUHVWSDWKVZKHUHXQHYHQIURVWKHDYHFRXOG
RFFXUGXULQJVQRZFOHDULQJ
± ZKHUHWKHUHDUHZLGHO\YDU\LQJVRLOSURSHUWLHV
± DWWKHWUDQVLWLRQIURPDIL[HGVXSSRUWWRDILHOGVHFWLRQ

(;$03/( ,QIURQWRIDQGEHKLQGVWDWLRQV

7KHORDGLVLPSRVHGE\WKHLQFUHDVHLQYROXPHDQGE\WKHULJLGLW\RIWKHIUR]HQVRLO7KLVYROXPHLQFUHDVHFDQEH
VLPXODWHGE\GHWHUPLQLQJDIURVWKHDYHSURILOH

' 3URFHGXUH

7KHVXVFHSWLELOLW\WRIURVWKHDYHVKRXOGEHGHWHUPLQHGIURPWKHJHRWHFKQLFDOLQYHVWLJDWLRQ7KHIURVWKHDYHDWWKH
OHYHORIWKHSLSHVKRXOGEHGHWHUPLQHGXVLQJDQDSSURSULDWHIURVWKHDYHPRGHO

(;$03/( /LWHUDWXUH>@

7KHVRLOSURSHUWLHVVKRXOGEHLQGLFDWHGIRUWKHQRQIUR]HQDQGIUR]HQFRQGLWLRQ

,WVKRXOGEHFOHDUO\VWDWHGZKHWKHUWKHFDOFXODWHGIURVWKHDYHLVDFKDUDFWHULVWLFYDOXHRUDPHDQYDOXH

' 6WUHQJWKFDOFXODWLRQ

7KHDQDO\VLVVKRXOGEHFDUULHGRXWLQDFFRUGDQFHZLWKDQG7KHPRGXOLRIVXEJUDGHUHDFWLRQDORQJWKH
SLSHOLQHVHFWLRQLQWKHFDOFXODWLRQPRGHOVKRXOGUHSUHVHQWWKHVLWXDWLRQZLWKQRQIUR]HQDQGIUR]HQVRLO

' 2WKHUSRVVLEOHPHDVXUHV

,IWKHVWUHQJWKRIWKHSLSHOLQHVHFWLRQXQGHUFRQVLGHUDWLRQFDQQRWPHHWWKHFULWHULDRWKHUWHFKQLTXHVVKRXOGEH
XVHGWRFRXQWHUWKHHIIHFWRIIURVWDFWLRQRUWRRYHUFRPHWKHPHFKDQLVPWKDWSURPRWHVLW

± VHOHFWLYH VRLOUHSODFHPHQW
± PRGLILFDWLRQRIWKHVRLOZLWKDGGLWLYHV
± GUDLQDJH
± LQVXODWLRQWRDOOHYLDWHIURVWKHDYHRUWRVKLIWLWWRDOHVVFULWLFDOORFDWLRQ

127( 2WKHUDVVRFLDWHGIURVWDFWLRQPHFKDQLVPVFDQEHWDNHQLQWRDFFRXQWVXFKDVWKDZZHDNHQLQJDQGIURVWJULS

‹%6,
3DJH
(1

' /LWHUDWXUH

>@ ³6RLOPHFKDQLFVIRUURDGHQJLQHHUV´'HSDUWPHQWRIWKH(QYLURQPHQW7UDQVSRUWDQG5RDG5HVHDUFK
/DERUDWRU\+HU0DMHVW\
V6WDWLRQDU\2IILFH/RQGRQ7HQWKLPSUHVVLRQ
>@ -)1L[RQ³3LSHOLQHIURVWKHDYHSUHGLFWLRQVXVLQJWKHVHJUHJDWLRQSRWHQWLDOIURVWKHDYHPHWKRG´
3URFHHGLQJVWK,QWHUQDWLRQDO&RQIHUHQFHRQ6XEVHD0HFKDQLFVDQG$UFWLF(QJLQHHULQJ+RXVWRQ
>@ /(&DUOVRQ-)1L[RQ³6XEVRLOLQYHVWLJDWLRQRILFHOHQVLQJDWWKH&DOJDU\&DQDGDIURVWKHDYHWHVW
IDFLOLW\´&DQ*HRWHFK-SSYRO
>@ ³$JURXQGIUHH]LQJWHVWIDFLOLW\´*HRWHFKQLFDO6FLHQFH/DERUDWRULHV&DUOHWRQ8QLYHUVLW\2WWDZD
&DQDGD
>@ 1\PDQQ³7KDZVHWWOHPHQWDQDO\VLVIRUEXULHGSLSHOLQHVLQSHUPDIURVW´3LSHOLQHVLQDGYHUVHHQYLURQPHQWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI



‹%6,
3DJH
(1

$QQH[( LQIRUPDWLYH

/DQGVOLGHDUHDV

( *HQHUDO

/DQGVOLGHVDUHPDVVPRYHPHQWVRIWKHJURXQGWKDWFDQEHWULJJHUHGE\UHGXFWLRQRIVKHDUVWUHQJWKRIWKHVRLORU
E\VHLVPLFVKDNLQJ

,WLVXQOLNHO\WKDWSLSHOLQHVFDQVXUYLYHWKHODUJHGHIRUPDWLRQVDVVRFLDWHGZLWKGHHSWUDQVODWLRQDODQGURWDWLRQDO
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

VOLGHVEXWLWLVSRVVLEOHWRGHVLJQIRULWLILQVWDELOLW\LQYROYHVVOXPSVDQGVKDOORZVOLGHV

/DQGVOLGHVDUHFKDUDFWHUL]HGE\WKHH[WHQVLRQDQGGHSWKRIWKHVOLGLQJDUHDDQGWKHUDWHDQGGLUHFWLRQRI
PRYHPHQW7KHFODVVLILFDWLRQE\9DUQHV OLWHUDWXUH>@ LVWKHFXUUHQWUHIHUHQFHIRUJUDYLWDWLRQDOPRYHPHQWV

6RPHFRQILJXUDWLRQVFDQEHSDUWLFXODUO\GDQJHURXVGXHWRWKHSUHVHQFHRIIL[HGSRLQWVDWZKLFKWKHVWUDLQVDUH
FRQFHQWUDWHGE\SLSHOLQHGLVSODFHPHQWVLPSRVHGE\ODQGVOLGHPRYHPHQW%HQGVDQGRWKHUFRQVWUDLQWVLQWKH
SLSHOLQHJLYHULVHWRGLIIHUHQWOHYHOVRIIOH[LELOLW\FDXVLQJWKHEHQGVWRFORVHDQGHYHQWXDOO\FROODSVH

(;$03/( ,IWKHSLSHOLQHLVSDUDOOHOWRWKHGLUHFWLRQRIVOLSWKHEHQGGRZQKLOO RIWHQDGMDFHQWWRDULYHURUURDG


FURVVLQJ LVWKHPDLQSRWHQWLDOGDQJHUSRLQW

( 3URFHGXUH

3URJUDPPHVIRUTXDQWLI\LQJODQGVOLGHKD]DUGVVKRXOGLQFOXGHLGHQWLILFDWLRQDQGLQYHVWLJDWLRQRI]RQHVGLVSOD\LQJ
VLJQVRIPRYHPHQWDQGVORSHVZKLFKDUHSRWHQWLDOO\XQVWDEOH

$HULDOSKRWRJUDSKVDUHRIJUHDWDVVLVWDQFHLQLGHQWLI\LQJ]RQHVRIUHFHQWGLVSODFHPHQWDQGLQIUDUHGLPDJHU\LV
RIWHQDYDOXDEOHVXSSOHPHQW

$SDUWIURPW\SLFDOJHRPRUSKRORJLFDOVLJQVRIVRLOPRYHPHQWDOORWKHUQRWVWULFWO\JHRORJLFDOHOHPHQWVZKLFKFDQ
LQGLFDWHVOLGLQJDFWLYLW\VKRXOGEHFRQVLGHUHGZLWKWKHJHRWHFKQLFDOVXUYH\WRREWDLQWKHIROORZLQJLQIRUPDWLRQ

± GHSWKDQGH[WHQVLRQRIWKHODQGVOLGH
± GLVSODFHPHQWYHFWRU UDWHDQGGLUHFWLRQRIPRYHPHQW 
± YDULDWLRQLQVWUDWXPOHYHO
± ZDWHUWDEOHOHYHO
± JHRWHFKQLFDOSDUDPHWHUVRIWKHVRLO

(;$03/( &UDFNVLQEXLOGLQJVRUURDGVEHQWSROHVDQGWUHHV

7KHSRVLWLRQRIWKHSLSHD[LVUHIHUUHGWRWKHPRYHPHQWDQGWKHSRVLWLRQRIWKHSLSHLQWKHODQGVOLGHDQGJHRPHWULFDO
SDUDPHWHUVHVSHFLDOO\KRUL]RQWDODQGYHUWLFDOEHQGVVKRXOGEHGHWHUPLQHG6ORSHVWDELOLW\DQDO\VHVVKRXOGEH
SHUIRUPHGZKHQWKHUHLVSRWHQWLDOLQVWDELOLW\LQVHLVPLF]RQHV

(;$03/( 'LVMXQFWLRQDUHDDQLQWHUPHGLDWHDUHDRUDVWDFNDUHD

( 6WUHQJWKFDOFXODWLRQ

7KHPDJQLWXGHRIWKHVWUHVVLQWKHSLSHGHSHQGVRQWKHZLGWKRIWKHVOLGLQJVRLOPDVVWKHPDJQLWXGHDQGGLUHFWLRQ
RIVRLOPRYHPHQWWKHVRLOVKHDUVWUHQJWKWKHIULFWLRQEHWZHHQVRLODQGSLSHDQGWKHGHSWKRIEXULDO

7KHDQJOHRILQFLGHQFHEHWZHHQSLSHDQGVRLOPRYHPHQWLVYHU\LPSRUWDQWEHFDXVHLWFDQDOVROHDGWRGLIIHUHQW
IDLOXUHPRGHVIRUWKHSLSHDQGSRVVLEO\WRGLIIHUHQWW\SHVRIDQDO\VHV

'\QDPLFHIIHFWVGXULQJWKHVOLGHPD\EHLJQRUHG

,QRUGHUWRREWDLQWKHVWUHVVDQGVWUDLQRIWKHSLSHOLQHWKHSLSHDQGLWVVXUURXQGLQJVRLOPD\EHLGHDOL]HGWKURXJKD
VWUXFWXUDOPRGHOHLWKHUIRUVSHFLILFDQDO\VLVVHFWLRQVRUIRUWKHHQWLUHSLSHOLQHV\VWHP

‹%6,
3DJH
(1

,QVLGHWKHVOLGLQJVRLOPDVVWKHHIIHFWVRIWKHVRLOFDQEHGHVFULEHGE\GLVWULEXWHGORDGVE\LPSRVHG
GLVSODFHPHQWVRUE\LQWHUPHGLDWHFRQGLWLRQV

2XWVLGHWKHVOLGHWKHVRLOUHVWUDLQVWKHPRYHPHQWRIWKHSLSH VHHOLWHUDWXUH>@ 

,QWKLVVLWXDWLRQSLSHVRLOLQWHUDFWLRQSOD\VDGHWHUPLQLQJUROH

,QWKHDQDO\VLVRISLSHVRLOLQWHUDFWLRQLWVKRXOGEHVHOHFWHGDIRUPXODIRUWKHFDOFXODWLRQRIWKHIRUFHVDQGWKH
UHVWUDLQWVH[HUWHGE\WKHVRLORQWKHSLSHV\VWHP
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHDPRXQWRIUHVWUDLQWDQGORDGH[HUWHGRQWKHSLSHOLQHLVDQRQOLQHDUIXQFWLRQRIWKHDPRXQWRIUHODWLYH
GLVSODFHPHQWEHWZHHQWKHVRLODQGWKHSLSHOLQH,QDWUDQVYHUVHODQGVOLGHVRLOORDGLQJZLOOLQGXFHODWHUDO
GLVSODFHPHQWVLHGLVSODFHPHQWVWUDQVYHUVHWRWKHSLSHOLQHD[LVWKDWFDQEHFRPHTXLWHODUJH VHHOLWHUDWXUH>@ 

,QWKHVHFDVHVFRQYHQWLRQDOVPDOOGLVSODFHPHQWEHDPEHQGLQJWKHRU\LVJHQHUDOO\LQDSSURSULDWH

$QDFFXUDWHDQDO\VLVRIWKHHIIHFWVRIODUJHWUDQVYHUVHJURXQGGLVSODFHPHQWVUHOLHVRQWKHXVHRISURFHGXUHVWKDW
FDQDFFRXQWIRUQRQOLQHDUEHKDYLRXURIWKHSLSHOLQHQRQOLQHDUEHKDYLRXURIWKHVRLODQGODUJHGLVSODFHPHQW
WKHRU\

)LQLWHHOHPHQWWHFKQLTXHVZLWKVLPSOLILHGPRGHOVIRULQWHUDFWLRQFDQEHHPSOR\HGIRUWKHVHDQDO\VHV

,QORQJLWXGLQDOODQGVOLGHVWKDWPHDQVZKHQWKHSLSHOLQHLVSDUDOOHOWRWKHGLUHFWLRQRIVOLSDILHOGRID[LDOVWUDLQLV
JHQHUDWHGE\WKHIULFWLRQDOIRUFHEHWZHHQVRLODQGSLSH

,QWKLVFDVHWKHSLSHOLQHFDQEHVHYHUHO\FRPSUHVVHG7ZRPRGHVRIGHIRUPDWLRQDUHSRVVLEOH

± WKHSLSHOLQHFDQEUHDNIUHHRIWKHVRLODQGEXFNOHXSZDUGDVDEHDP
± WKHSLSHOLQHFDQEXFNOHDVDVKHOOZLWKORFDOZDUSLQJDQGZULQNOLQJRILWVZDOO

6WUHQJWKFDOFXODWLRQVVKRXOGEHFDUULHGRXWLQDFFRUGDQFHZLWKXVLQJWKHUHOHYDQWVRLOGDWD

( 3RVVLEOHDFWLRQWRSUHYHQWWKHDOORZDEOHOLPLWYDOXHVEHLQJH[FHHGHG

,QWKHSLSHOLQHGHVLJQSURFHVVLWVKRXOGEHDSSUHFLDWHGWKDWWKHFKDQFHRIVXUYLYDORIWKHSLSHOLQHLVJUHDWHVWLIWKH
IDLOXUHPRGHLVRQHRIWHQVLRQZKHQWKHSLSHOLQHLVVHYHUHO\FRPSUHVVHGWKHFKDQFHRIVXUYLYDOLVVLJQLILFDQWO\
OHVVHQHG VHHOLWHUDWXUH>@ 

,QHLWKHUFDVHWKHIROORZLQJDFWLRQVFDQEHWDNHQWRUHGXFHWKHVWDWHRIVWUHVVRIWKHSLSHOLQH

± PLQLPL]HODWHUDOVRLOIRUFHVRQWKHSLSHOLQHE\FRQWUROOLQJWKHW\SHRIEDFNILOOPDWHULDOGHJUHHRI
FRPSDFWLRQDQGGHSWKRIFRYHU
± PLQLPL]HORQJLWXGLQDOIULFWLRQIRUFHDVDERYHSD\LQJSDUWLFXODUDWWHQWLRQWRSLSHOLQHFRDWLQJV
± PD[LPL]HWKHVOLGHPRYHPHQWFDSDFLW\RIWKHSLSHOLQHE\HOLPLQDWLQJSRWHQWLDODQFKRULQJHOHPHQWVZLWKLQ
WKHDQFKRULQJDUHDHLWKHUVLGHRIWKHVOLGLQJVRLO

(;$03/( $QFKRULQJHOHPHQWVFDQEHDPRQJVWRWKHUVEHQGVWHHYDOYHV

± DYRLGSDUWLFXODUJHRPHWU\RIWKHSLSHOLQHWKDWFDQFDXVHKLJKVWUHVVFRQFHQWUDWLRQV

:KHQPRQLWRULQJLQGLFDWHVWKDWVWUHVVHVDUHQHDULQJWKHDOORZDEOHOLPLWYDOXHVRUDUHIROORZLQJDVWHDG\WUHQGWKH
IROORZLQJPLWLJDWLQJDFWLRQVDUHSRVVLEOH

± GLJJLQJDWUHQFKDURXQGWKHSLSHOLQHVHFWLRQWRUHOD[LW
± FXWWLQJWKHSLSHWRHOLPLQDWHWKHVWUHVV
± VWDELOL]LQJVRLOZLWKVXLWDEOHZRUNVDQGRULQVWDOODWLRQRIDGUDLQDJHV\VWHP VHHOLWHUDWXUH>@ 

(;$03/( %\UHLQIRUFHPHQWRIWKHVORSHE\ZDOOVUHLQIRUFHGFRQFUHWHWLHVUHLQIRUFHGHPEDQNPHQWV

‹%6,
3DJH
(1

( 0RQLWRULQJ

'HSHQGLQJRQKRZFULWLFDOWKHFURVVHGDUHDLVPRQLWRULQJFDQUDQJHIURPVLPSOHSHULRGLFDOVXUYH\LQJWHFKQLTXHV
WRLQVWUXPHQWEDVHGPRQLWRULQJRIERWKWKHDUHDDQGWKHSLSHOLQH

7ZRIXQGDPHQWDOSUREOHPVDUHLQKHUHQWLQPHWKRGVRIPRQLWRULQJWKHSLSHOLQHLQXQVWDEOHDUHDV

± VWUDWHJLFSRVLWLRQLQJRILQVWUXPHQWDWLRQ VWUDLQJDXJHV 6HFWLRQVZKHUHKLJKVWUHVVHVDUHSUHGLFWHGDQG


SRLQWVZLWKKLJKVWUHVVFRQFHQWUDWLRQVLQSDUWLFXODUVKRXOGEHPRQLWRUHG
± GHWHUPLQDWLRQRIDOORZDEOHOLPLWYDOXHVWKDWZKHQH[FHHGHGLQGLFDWHWKHQHHGIRUPLWLJDWLQJPHDVXUHV,Q
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

WKLVFDVHLWLVLPSRUWDQWWRNQRZLQGHWDLOWKHDVEXLOWSRVLWLRQRIWKHSLSHOLQHLQUHODWLRQWRWKHVWUHVVHV
DOUHDG\SUHVHQWLQWKHSLSHOLQH

,QFOLQRPHWHUVVKRXOGEHXVHGWRPHDVXUHWKHGLVSODFHPHQWVDQGGLUHFWLRQVDQGSLs]RPHWHUVWRPRQLWRUWKHZDWHU
OHYHO

( /LWHUDWXUH

>@ '-9DUQHV³6ORSHPRYHPHQWW\SHVDQGSURFHVVHV/DQGVOLGHDQDO\VLVDQGFRQWURO´6SHFLDOUHSRUW
1DW$FDGRI6FLHQFHV:DVKLQJWRQ
>@ 9HQ]L0DOODUGL³&RQWURORISLSHOLQHVVXEMHFWWRODQGVOLGHV´WK:RUOG*DV&RQIHUHQFH/DXVDQQH
6ZLW]HUODQG-XQH
>@ .HQQHG\1\PDQQ$XGLEHUW³$QDO\VLVRIEXULHGSLSHOLQHVIRUVHLVPLFLQGXFHGJURXQGGLVWRUWLRQV´$60(
WK1DWLRQDO&RQJUHVVRQ3UHVVXUH9HVVHODQG3LSLQJ7HFKQRORJ\3RUWODQG2UHJRQ-XQH
>@ <HK³/DQGVOLGHHIIHFWVWREXULHGSLSHOLQHV´1XPHULFDOPHWKRGVLQJHRPHFKDQLFV,QQVEUXFN
>@ %HD$XURUD³'HVLJQRISLSHOLQHVLQPXGVOLGHDUHDV´-RXUQDORI3HWUROHXP7HFKQRORJ\1RYHPEHU
>@ -+*UHHQZRRG0%%XNRYDQVN\*0DMRU³/LQHPRQLWRULQJLQVWUXPHQWVSURYHHIIHFWLYHIRU:HVWHUQ
86DUHDVVXEMHFWWRODQGVOLGHV´2LO *DV-RXUQDOSS)HE
>@ $2OFHVH&9HVFRYR0%DGDOLQH3%DOGHOOL*3DOORQL³0RQLWRULQJRIULVNDUHDVDORQJSLSHOLQHVLQ
,WDO\´,QWHUSUDHYHQW%HUQ
>@ *6WHOOD$2OFHVH³7KH,WDOLDQH[SHULHQFHLQFURVVLQJWKH$OSVDQG$SHQQLQHV´WK:RUOG*DV
&RQIHUHQFH%HUOLQ,*8&
>@ &XVFXQj'DOODWRUUH%RO]RQL³&RQWUROORGLPHWDQRGRWWLLQDUHHLQVWDELOLSHUPH]]RGLHVWHQVLPHWULDFRUGH
YLEUDQWLLQIOXHQ]DGHOODJHRPHWULDGHOODWXED]LRQH´•&RQJUHVVR1D]LRQDOHGHO$VVRFLD]LRQH,WDOLDQD
3URYH1RQ'LVWUXWWLYH0LODQ ,WDOLDQYHUVLRQ 

‹%6,
3DJH
(1

$QQH[) LQIRUPDWLYH

$UHDVZLWKKLJKVHLVPLFULVN

) *HQHUDO

2QODQGVHLVPLFKD]DUGVWKDWDIIHFWSLSHOLQHVDUH

± YLEUDWRU\JURXQGPRWLRQGXHWRWUDYHOOLQJVHLVPLFZDYHV VKDNLQJ 
± SHUPDQHQWJURXQGPRYHPHQWVZKLFKLQFOXGHIDXOWLQJOLTXHIDFWLRQDQGODQGVOLGHV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

*URXQGVKDNLQJLVDPDMRUGHVLJQFRQVLGHUDWLRQIRUDERYHJURXQGVHFWLRQVRISLSHOLQHV

7KHVHLVPLFUHVSRQVHRIEXULHGSLSHOLQHVLVVWURQJO\LQIOXHQFHGE\ODUJHSHUPDQHQWVRLOGLVSODFHPHQWV6KDNLQJ
GRHVQRWFDXVHVHULRXVVWUHVVHVLQVWUDLJKWEXULHGSLSHOLQHVH[FHSWQHDUWKHHSLFHQWUHRULQ]RQHVRIVWURQJVHLVPLF
DPSOLILFDWLRQ%HQGVDQGWHHVDUHPRUHYXOQHUDEOH

) 3URFHGXUH

,IMXVWLILHGE\WKHVHLVPLFDFWLYLW\LQWKHDUHDLWFDQEHQHFHVVDU\WRTXDQWLI\VHLVPLFKD]DUGV

7KHSULQFLSDOSKDVHVRIDVHLVPLFKD]DUGDQDO\VLVDUHLOOXVWUDWHGLQ)LJXUH)

,GHQWLILFDWLRQDQG
FKDUDFWHUL]DWLRQRI $WWHQXDWLRQODZV
VHLVPLFVRXUFHV

6HLVPLFKD]DUG
DQDO\VLV

9LEUDWRU\JURXQG 3HUPDQHQWJURXQG
PRYHPHQWVDWVLWH PRYHPHQWVDWVLWH

)LJXUH)6HLVPLFKD]DUGDQDO\VLV

7KHLGHQWLILFDWLRQDQGFKDUDFWHUL]DWLRQRISRWHQWLDOVHLVPLFVRXUFHVLQWKHQHLJKERXUKRRGRIDVLWHLQYROYHERWK
JHRORJLFDODQGVHLVPRORJLFDOLQYHVWLJDWLRQVDQGKLVWRULFDOVHLVPLFGDWDDQDO\VLV

,QIRUPDWLRQRQWKHFKDUDFWHULVWLFVRIVHLVPLFVRXUFHVWKHJHRORJLFDODQGJHRWHFKQLFDOFRQGLWLRQVDQGVLWHWR
VRXUFHDWWHQXDWLRQVKRXOGEHLQWHJUDWHGLQWRSUREDELOLVWLFRUGHWHUPLQLVWLFPRGHOVWRREWDLQWKHPHDVXUHVRI
VHLVPLFLQWHQVLW\DWVLWH VHHOLWHUDWXUH>@ 

‹%6,
3DJH
(1

) 6WUHQJWKFDOFXODWLRQ

) 9LEUDWRU\JURXQGPRWLRQ VKDNLQJ

'HSHQGLQJRQWKHW\SHRIDQDO\VLVWKHIROORZLQJDSSURDFKHVFDQEHXVHGIRUGHILQLQJVHLVPLFLQSXWFULWHULD VHH
OLWHUDWXUH>@DQG>@ 

± UHVSRQVHVSHFWUD7KHVHJLYHWKHSUREDELOLW\RIYDULRXVOHYHOVRIJURXQGPRWLRQEHLQJH[FHHGHGLQJLYHQ
SHULRGVRIWLPH
± VHLVPLFUHJLRQDOL]DWLRQPDSV7KHVHSURYLGHUHSUHVHQWDWLYHLQWHQVLWLHVRIVKDNLQJIRUWKHUHVSRQVH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

XQGHUFRQVLGHUDWLRQEDVHGRQWKHLUVHLVPRORJLFDODQGJHRORJLFDOFKDUDFWHULVWLFV
± JURXQGPRWLRQWLPHKLVWRULHV7KHVHDUHXVHGIRUWKHDQDO\VLV0RUHWKDQRQHWLPHKLVWRU\VKRXOGEH
XVHGZKHWKHUUHDORUV\QWKHWLF7KH\VKRXOGEHUHSUHVHQWDWLYHRIWKHVKDNLQJH[SHFWHGWRRFFXUDWWKH
VLWHDQGVKRXOGKDYHWKHVDPHRYHUDOOLQWHQVLW\DQGIUHTXHQF\FRQWHQWV

7KUHHEDVLFPHWKRGVDUHDYDLODEOHIRUVHLVPLFUHVSRQVHDQDO\VLVRIDERYHJURXQGSLSHOLQHVDQGUHODWHGIDFLOLWLHV
VHHOLWHUDWXUH>@ 

± DTXDVLVWDWLF FRGHW\SH ORDGDSSURDFK


± DPRGDOUHVSRQVHVSHFWUXPDSSURDFK
± DWLPHKLVWRU\DQDO\VLV

,IDQDERYHJURXQGSLSHOLQHH[WHQGVRYHUUHODWLYHO\ORQJGLVWDQFHVWKHVSDWLDOYDULDWLRQRILQFLGHQWVHLVPLFZDYHV
VKRXOGEHFRQVLGHUHG'LIIHUHQWVXSSRUWSRLQWVDORQJWKHSLSHOLQHZLOOEHVXEMHFWHGWRH[FLWDWLRQVWKDWGLIIHUERWKLQ
DPSOLWXGHDQGSKDVH

7ZRDQDO\VHVVKRXOGEHFDUULHGRXWIRUSLSHOLQHEULGJHV

± GHVLJQRIEULGJHVWRUHVLVWWKHHIIHFWVRIHDUWKTXDNH
± GHVLJQRIWKHSLSHOLQHLQDPDQQHUVLPLODUWRWKDWIRUDERYHJURXQGVXSSRUWHGSLSHOLQHV

)RUDEXULHGSLSHOLQHWKHUHVWUDLQWDQGGDPSLQJFKDUDFWHULVWLFVRIWKHVXUURXQGLQJVRLOPHDQWKDWG\QDPLF
DPSOLILFDWLRQGRHVQRWSOD\DQLPSRUWDQWUROHLQWKHVHLVPLFUHVSRQVHRIWKHSLSH7KHVHLVPLFORDGLQJFDQ
WKHUHIRUHEHFRQVLGHUHGDVDSVHXGRVWDWLFORDG

7KHHIIHFWVLQGXFHGRQDEXULHGSLSHOLQHE\WKHVHLVPLFHODVWLFGHIRUPDWLRQZDYHFDQEHHYDOXDWHGXVLQJVLPSOLILHG
DQDO\WLFDODSSURDFKHVRUQXPHULFDOPHWKRGV VHHOLWHUDWXUH>@>@DQG>@ 7KHVHOHFWLRQRIDSSURSULDWHPRGHOOLQJ
VKRXOGEHPDGHRQWKHEDVLVRIWKHW\SHDQGLPSRUWDQFHRIWKHSLSHOLQHEHLQJGHVLJQHGDQGWKHTXDOLW\RIWKH
DYDLODEOHDQGREWDLQDEOHJHRWHFKQLFDOGDWD6LPSOLILHGPHWKRGVDUHJHQHUDOO\DGHTXDWHLQSUHOLPLQDU\GHVLJQ
:KHUHWKHUHVXOWVRIWKLVHYDOXDWLRQVXJJHVWWKDWVSHFLDOSUHFDXWLRQVZLOOEHUHTXLUHGWRHQVXUHDFFHSWDEOH
SHUIRUPDQFHRUZKHUHWKHSLSHOLQHLVWRRLPSRUWDQWRUWRRFRPSOH[WKHPRUHULJRURXVDQDO\VHVVKRXOGEH
FRQVLGHUHG

6WUDLJKWEXULHGSLSHOLQHVFDQEHFRQVLGHUHGDVULJLGO\ERQGHGWRWKHVXUURXQGLQJVRLOWKHUHLVQRUHODWLYH
GLVSODFHPHQWEHWZHHQWKHSLSHDQGVRLOVRWKDWERWKKDYHWKHVDPHVWUDLQVLHWKH³IUHHILHOG´GHIRUPDWLRQVRIWKH
VRLO VHHOLWHUDWXUH>@ ,QVRIWVRLOZKHUHWKHSLSHLVYHU\VWLIILQUHODWLRQWRLWWKHDERYHDSSURDFKFDQOHDGWRD
YHU\FRQVHUYDWLYHGHVLJQDQGDQDQDO\VLVRISLSHVRLOLQWHUDFWLRQLVLPSRUWDQW3LSHVRLOLQWHUDFWLRQVKRXOGDOVREH
FRQVLGHUHGLQWKHDQDO\VLVRIEXULHGSLSHOLQHVZLWKEHQGVDQGWHHV,QQRFDVHVKRXOGWKHVWUHVVHVVWUDLQVLQ
DFFRUGDQFHZLWKEHH[FHHGHG

) 3HUPDQHQWJURXQGPRYHPHQW

3HUPDQHQWJURXQGHIIHFWVRQEXULHGSLSHOLQHVDUHHYDOXDWHGE\

± ORFDWLQJDUHDVRIJHRWHFKQLFDOKD]DUG
± HVWLPDWLQJWKHOLNHO\VRLOGLVSODFHPHQWSDWWHUQV
± GHWHUPLQLQJSLSHOLQHVWUHVVHVDQGVWUDLQVE\PHDQVRIPRGHOVRISLSHVRLOLQWHUDFWLRQ

7KHDQDO\VLVRISLSHVRLOLQWHUDFWLRQUHTXLUHVDSURFHGXUHWKDWFDQDFFRXQWIRUWKHQRQOLQHDUEHKDYLRXURIWKH
VXUURXQGLQJVRLOPDVVODUJHGLVSODFHPHQWHIIHFWVDQGLQHODVWLFSLSHEHKDYLRXU

‹%6,
3DJH
(1

$QDO\WLFDOSURFHGXUHVIRUVWUDLJKWJHRPHWU\RISLSHVDUHSUHVHQWHGLQOLWHUDWXUH>@>@DQG>@:KHUHWKHSLSHOLQH
FRQILJXUDWLRQLVFRPSOH[ IRUH[DPSOHWKUHHGLPHQVLRQDO ILQLWHHOHPHQWFRPSXWHUDQDO\VLVLVDXVHIXOWHFKQLTXH
7KHSLSHOLQHLVLGHDOL]HGDVDEHDP VHHOLWHUDWXUH>@ RUDVDVKHOO VHHOLWHUDWXUH>@ 3LSHVRLOLQWHUDFWLRQLV
PRGHOOHGE\VLPSOLILHGPHWKRGV

7KHSUHGLFWHGGLVSODFHPHQWVKRXOGQRWOHDGWRVWUHVVHVVWUDLQVLQWKHSLSHZKLFKH[FHHGWKHYDOXHVLQDFFRUGDQFH
ZLWK

) 3RVVLEOHDFWLRQWRSUHYHQWWKHDOORZDEOHOLPLWYDOXHVEHLQJH[FHHGHG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

'XULQJWKHGHVLJQSURFHVVWKHHQJLQHHUVKRXOGFRQVLGHUWKHIROORZLQJUHFRPPHQGDWLRQVWRSUHYHQWWKH
DOORZDEOHOLPLWYDOXHVEHLQJH[FHHGHG

)RUDERYHJURXQGSLSHOLQHV

± SURYLGHGXFWLOLW\DWWKHMRLQWVDQGFRQQHFWLRQV

)RUEXULHGSLSHOLQHV

± DYRLGFURVVLQJVRLOVZKLFKFRXOGFDXVHVWURQJDPSOLILFDWLRQRIVHLVPLFZDYHVDQGKRUL]RQWDOGLVFRQWLQXLW\
IURPILUPWRVRIWVRLO
± SODFHWKHSLSHOLQHLQDQRYHUVL]HGWUHQFKVXUURXQGHGE\ORRVHWRPHGLXPGHQVHFRKHVLRQOHVVJUDQXODU
EDFNILOO
± UHGXFHWKHLQWHUIDFHIULFWLRQDOUHVLVWDQFHEHWZHHQVRLODQGSLSH
± VHOHFWDSLSHDOLJQPHQWDWDIDXOWFURVVLQJVXFKWKDWFRPSUHVVLRQLVDYRLGHG
± GRQRWORFDWHSRWHQWLDODQFKRULQJHOHPHQWV WHHVVKDUSEHQGVIODQJHV ZLWKLQWKHDQFKRULQJDUHDVRQ
HLWKHUVLGHRIWKHIDXOW]RQHV

) /LWHUDWXUH

>@ &RUQHOO³(QJLQHHULQJVHLVPLFULVNDQDO\VLV´%XOOHWLQRIWKH6HLVPRORJLFDO6RFLHW\RI$PHULFDYRO

>@ &RPPLWWHHRQ*DVDQG/LTXLG)XHO3LSHOLQHV³*XLGHOLQHVIRUWKHVHLVPLFGHVLJQRIRLODQGJDVV\VWHPV´
$6&(1HZ<RUN
>@ 6W-RKQ=DKUDK³$VHLVPLFGHVLJQRIXQGHUJURXQGVWUXFWXUHV´7XQQHOOLQJDQG8QGHUJURXQG6SDFH
7HFKQRORJ\YROQR
>@ 2
5RXUNH*ULJRULX.KDWHU³6HLVPLFUHVSRQVHRIEXULHGSLSHOLQHV´3UHVVXUHYHVVHODQGSLSLQJ
WHFKQRORJ\$GHFDGHRISURJUHVV
>@ /5/:DQJ<+<HK³$UHILQHGVHLVPLFDQDO\VLVDQGGHVLJQRIEXULHGSLSHOLQHIRUIDXOWPRYHPHQW´
((6'YROSS-DQXDU\)HEUXDU\
>@ 7DZILN2
5RXUNH³$QDO\VLVRISLSHOLQHVXQGHUODUJHVRLOGHIRUPDWLRQ´&RUQHOO*HRWHFKQLFDO(QJLQHHULQJ
,WKDFD1HZ<RUN
>@ 0$LTEDO('*RRGOLQJ-U³6HLVPLFGHVLJQRIEXULHGSLSLQJ´QG$6&(6SHFLDO&RQIHUHQFHRQ
6WUXFWXUDO'HVLJQRI1XFOHDU3ODQW)DFLOLWLHV1HZ2UOHDQV'HFHPEHU
>@ 101HZPDUN³3LSHOLQHGHVLJQWRUHVLVWODUJHIDXOWGLVSODFHPHQWV´3URFHHGLQJVRIWKHVW861&((
((5-2DNODQG&DOLIRUQLD
>@ 53.HQQHG\&KRZ:LOOLDPVRQ³)DXOWPRYHPHQWHIIHFWVRQEXULHGRLOSLSHOLQHV´7UDQVSRUWDWLRQ(QJ
-RXUQDORI$6&(YROQR7(
>@ 53.HQQHG\$&'DUURZ6$6KRUW³*HQHUDOFRQVLGHUDWLRQVIRUVHLVPLFGHVLJQRIRLOSLSHOLQH
V\VWHPV´$6&(&6./(*/RV$QJHOHV
>@ 7RNL)XNXPRUL6DNR7VXEDNLPRWR³5HFRPPHQGHGSUDFWLFHIRUHDUWKTXDNHUHVLVWDQWGHVLJQRIKLJK
SUHVVXUHJDVSLSHOLQHV´,QWHUQDWLRQDO6\PSRVLXPRQ3LSHOLQH(DUWKTXDNH(QJLQHHULQJWK&RQJUHVVRQ
3UHVVXUH9HVVHODQG3LSLQJ7HFKQRORJ\3RUWODQG2UHJRQ-XQHHGLWHGE\7HRPDQ$ULPDQ
8QLYHUVLW\RI7XOVD$60(
>@ 6DLWR1LVKLR.DWD\DPD³5HFRPPHQGHGSUDFWLFHIRUHDUWKTXDNHUHVLVWDQWGHVLJQRIPHGLXPDQGORZ
SUHVVXUHJDVSLSHOLQHV´(DUWKTXDNHEHKDYLRXUDQGVDIHW\RIRLODQGJDVVWRUDJHIDFLOLWLHVEXULHGSLSHOLQHV
DQGHTXLSPHQWYRO
>@ &/7D\ORU/6&OXII³)DXOWGLVSODFHPHQWDQGJURXQGGHIRUPDWLRQDVVRFLDWHGZLWKVXUIDFHIDXOWLQJ´
$6&(&6./(*/RV$QJHOHV

‹%6,
3DJH
(1

>@ 67DNDGD³(DUWKTXDNHUHVLVWDQWGHVLJQRIXQGHUJURXQGSLSHOLQHV´1HZ'HOKL
>@ -%%HUULO³%XLOGLQJRYHUIDXOWVDSURFHGXUHIRUHYDOXDWLQJULVN´((6'YROQRSS
0D\-XQH
>@ $6.LUHPLGMLDQ³5HOLDELOLW\RIVWUXFWXUHVVXEMHFWHGWRGLIIHUHQWLDOIDXOWVOLS´((6'YROQRSS
6HSWHPEHU2FWREHU
>@ -$:KLWHODZ':5HSSRQG³'HVLJQIRUEXULHGSLSHOLQHFDQUHGXFHVHLVPLFKD]DUGV´2LO *DV
-RXUQDOSS2FWREHU
>@ +LQG\1RYDN³(DUWKTXDNHUHVSRQVHRIXQGHUJURXQGSLSHOLQHV´(DUWKTXDNH(QJLQHHULQJDQG6WUXFWXUDO
'\QDPLFVYRO
>@ 11LVKLR$+DPXUD76DVH³(IIHFWRIJURXQGFRQGLWLRQVRQVHLVPLFGHIRUPDWLRQLQEXULHGSLSHOLQHV´
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

,QWHUQDWLRQDO*DV5HVHDUFK&RQIHUHQFH

‹%6,
3DJH
(1

$QQH[* LQIRUPDWLYH

([WHQGHGHODVWLFDQGOLPLWVWDWHGHVLJQ

* 3URFHGXUH

*HQHUDOO\VSHDNLQJRQO\WKHOLPLWVWDWHRIVWUHVVDQGDOWHUQDWLQJ\LHOGDUHWDNHQLQWRDFFRXQWLQWKHH[WHQGHG
HODVWLFGHVLJQ,QWKHOLPLWVWDWHGHVLJQDOOOLPLWVWDWHVKDYHWREHFRQVLGHUHG

,QWKHVWUHVVDQGVWUDLQFDOFXODWLRQVLQH[WHQGHGHODVWLFDQGOLPLWVWDWHGHVLJQFDOFXODWLRQORDGVDUHXVHGZKLFKDUH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

EDVHGRQWKHFKDUDFWHULVWLFORDGV

&KDUDFWHULVWLFYDOXHVIRUWKHORDGVDUHYDOXHVIRUZKLFKWKHSUREDELOLW\RIWKHLUEHLQJH[FHHGHGLVOHVVWKDQDERXW


(;$03/( ,QWHUQDOSUHVVXUHVRLOORDGVGLIIHUHQWLDOVHWWOHPHQWWKHUPDOORDGV

&KDUDFWHULVWLFYDOXHVIRUWKHPDWHULDOSURSHUWLHVRIWKHSLSHOLQHDUHYDOXHVIRUZKLFKWKHSUREDELOLW\RIWKHDFWXDO
YDOXHVEHLQJOHVVWKDQWKHFKDUDFWHULVWLFYDOXHVLVOHVVWKDQDERXW

(;$03/( <LHOGVWUHQJWKWHQVLOHVWUHQJWK

&KDUDFWHULVWLFYDOXHVIRUVRLOHQJLQHHULQJSDUDPHWHUVDUHREWDLQHGE\PXOWLSO\LQJRUGLYLGLQJWKHPHDQYDOXHVE\
WKHFRQWLQJHQF\IDFWRUVJLYHQLQ7DEOH*

7KHFKDUDFWHULVWLFORDGVDUHWKHQEHPXOWLSOLHGE\WKHORDGIDFWRUVJLYHQLQ7DEOH*WRREWDLQWKHFDOFXODWLRQ
ORDGV

* /LPLWVWDWHVOLPLWYDOXHVDQGDVVHVVPHQW

* *HQHUDO

7KHFDOFXODWLRQORDGVDUHXVHGWRFDOFXODWHVWUHVVHVVWUDLQVDQGRWKHUYDOXHVIRUWKHYDULRXVOLPLWVWDWHV7KHVH
FDOFXODWHGYDOXHVVKRXOGQRWH[FHHGWKHOLPLWYDOXHVDVVRFLDWHGZLWKWKHUHOHYDQWOLPLWVWDWHVJLYHQLQ*)RU
SLSHOLQHVWKHWHUP³OLPLWVWDWH´FDQEHGHILQHGDV³DOLPLWVWDWHLVDFRQGLWLRQLQZKLFKWKHSLSHOLQHFDQEH
FRQVLGHUHGXQVHUYLFHDEOHRUXQVDIH´

7KHIROORZLQJIXQGDPHQWDOOLPLWVWDWHVFDQEHGLVWLQJXLVKHG

± OLPLWVWDWHIRUIUDFWXUH
± OLPLWVWDWHIRUGHIRUPDWLRQ

)RUSUDFWLFDODQGGHVLJQFRQVLGHUDWLRQVWKHIXQGDPHQWDOOLPLWVWDWHIRUIUDFWXUHKDVEHHQEURNHQGRZQLQWRUHODWHG
OLPLWVWDWHV LQ*D E F G DQGH 7KHOLPLWVWDWHIRUGHIRUPDWLRQLVGLVFXVVHGLQ*I DQGJ 

* $VVHVVPHQWFULWHULDIRUDQDO\VLVEDVHGRQHODVWLFLW\WKHRU\

:KHUHWKHDQDO\VLVLVEDVHGRQHODVWLFLW\WKHRU\WKHOLPLWVWDWHIRUVWUHVVLVJHQHUDOO\WKHGHFLGLQJIDFWRULQWKH
DVVHVVPHQW7KHVSHFLILHGPLQLPXP\LHOGVWUHVVDWWKHGHVLJQWHPSHUDWXUH 5W LVWDNHQDVWKHOLPLWYDOXHIRU
VWUHVV

,QFHUWDLQFDVHVKRZHYHUWKHRWKHUOLPLWVWDWHVFDQDOVRSOD\DUROHDQGLQSULQFLSOHDOOWKHOLPLWVWDWHVUHIHUUHGWRLQ
*VKRXOGEHLQFOXGHGLQWKHDVVHVVPHQW

‹%6,
3DJH
(1

* $VVHVVPHQWFULWHULDIRUDQDO\VLVEDVHGRQOLPLWVWDWHWKHRU\

:KHUHWKHDQDO\VLVLVEDVHGRQWKHOLPLWVWDWHWKHRU\WKHVWUHVVHVVWUDLQVDQGRWKHUYDOXHVVKRXOGEHFDOFXODWHG
IRUDOOWKHOLPLWVWDWHVUHIHUUHGWRLQ*7KHVHFDOFXODWHGYDOXHVVKRXOGQRWH[FHHGWKHOLPLWYDOXHVVHWIRUWKLQ
*

* 5HOHYDQWOLPLWVWDWHV

7KHUHOHYDQWOLPLWVWDWHVDUH VHHDOVR 

D  VWUHVV7KHOLPLWVWDWHLQZKLFKWKHOLPLWVWUHVVLVH[FHHGHG
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

E VWUDLQ7KHOLPLWVWDWHLQZKLFKWKHOLPLWVWUDLQLVH[FHHGHG
F DOWHUQDWLQJ\LHOG7KHOLPLWVWDWHLQZKLFKWKHYDULDWLRQVLQWKHVWUDLQVGXHWRF\FOLFORDGVDUHVRJUHDWWKDW
SODVWLFGHIRUPDWLRQRFFXUVRQHDFKORDGUHYHUVDO SODVWLFIDWLJXH 
G IDWLJXH7KHOLPLWVWDWHIRUIUDFWXUHGXHWRF\FOLFORDGLQJRYHUWLPH
H UHVRQDQFHDQGYRUWH[VKHGGLQJ7KHOLPLWVWDWHIRUH[FHVVLYHH[FXUVLRQVE\WKHSLSHOLQHRULWV
FRPSRQHQWSDUWV

7KHVHH[FXUVLRQVDULVHZKHQWKHIUHTXHQF\RIH[FLWDWLRQFRLQFLGHVZLWKWKHSLSHOLQH
VQDWXUDOIUHTXHQF\

)RUSLSHOLQHVHFWLRQVZKLFKDUHORFDOO\XQVXSSRUWHGE\VRLODQGH[SRVHGWRZDYHVDQGFXUUHQWVDVWXG\
VKRXOGEHPDGHRIWKHSRVVLELOLWLHVRIYLEUDWLRQGXHWRYRUWH[VKHGGLQJDQGRWKHULQVWDELOLW\SKHQRPHQD
I GHIRUPDWLRQ7KHOLPLWVWDWHIRUH[FHVVLYHGHIRUPDWLRQWDNLQJWKHIRUPIRUH[DPSOHRIH[FHVVLYHRYDOLW\
ORFDOEXFNOLQJLPSORVLRQRURYHUDOOIOH[XUDOEXFNOLQJRIWKHSLSHOLQH
*HQHUDOO\VSHDNLQJH[FHVVLYHGHIRUPDWLRQVRIWKLVNLQGZLOORFFXULQWKHSODVWLFUDQJHDQGWKHUHIRUH
FRQVLVWFKLHIO\RISODVWLFGHIRUPDWLRQV6LWXDWLRQVFDQDULVHKRZHYHULQZKLFKH[FHVVLYHHODVWLF
GHIRUPDWLRQVRFFXUWKDWKDYHDGHOHWHULRXVHIIHFWRQVDIHW\

(;$03/( 7KHVHL]XUHRIFORVHWROHUDQFHPRYLQJSDUWV YDOYHV DQGGLVWRUWLRQRIIODQJHVZKLFKLPSDLUV


WKHLULQWHJULW\
J GLVSODFHPHQWODWHUDOVWDELOLW\

* /LPLWYDOXHV

7KHOLPLWYDOXHVJLYHQLQWKHIROORZLQJDSSO\WRWKHDVVHVVPHQWRIUHVXOWVREWDLQHGZLWKHODVWLFLW\WKHRU\DVVXPLQJ
WKDWWKHVWHHOFDQXQGHUJRVRPHSODVWLFGHIRUPDWLRQDQGUHVXOWVJLYHQE\OLPLWVWDWHWKHRU\,QFDVHVZKHUHDOLPLW
YDOXHGHSHQGVRQWKHWKHRUHWLFDODSSURDFKHPSOR\HGWKLVLVLQGLFDWHG

D  VWUHVV7KHOLPLWYDOXHIRUKRRSVWUHVVLVHTXDOWR5W 7KHIRUPXODIRUWKHKRRSVWUHVVLVJLYHQEHORZ

SF ' J
s =
7PLQ

ZKHUH

LVWKHKRRSVWUHVVLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
SF LVWKHFDOFXODWLRQSUHVVXUH GHVLJQSUHVVXUHWLPHVORDGIDFWRU LQEDU
'J LVWKHPHDQGLDPHWHURISLSHLQPLOOLPHWUHV PP 
'J LV'7PLQLI'LVSUHVHW
'J LV'L7PLQLI'LLVSUHVHW
' LVWKHRXWVLGHGLDPHWHULQDFFRUGDQFHZLWK(1LQPLOOLPHWUHV PP 
'L LVWKHLQVLGHGLDPHWHULQPLOOLPHWUHV PP 
7PLQ LVWKHPLQLPXPZDOOWKLFNQHVVLQPLOOLPHWUHV PP

127( 7KHZDOOWKLFNQHVVWREHVSHFLILHGLQDFFRUGDQFHZLWK(1LVWKHFDOFXODWHGPLQLPXPZDOO
WKLFNQHVVSOXVWKHVSHFLILHGXQGHUZDOOWKLFNQHVVWROHUDQFH

‹%6,
3DJH
(1

,QELD[LDORUWULD[LDOV\VWHPVWKHOLPLWYDOXHIRUWKHUHVXOWDQWVWUHVVFDOFXODWHGLQDFFRUGDQFHZLWK+XEHU
+HQFN\DQG9RQ0LVHVRUWKHVKHDUVWUHVVK\SRWKHVLVLVDOVRHTXDOWR5W 

$WHOHYDWHGRSHUDWLQJWHPSHUDWXUHVWKHIROORZLQJ\LHOGVWUHQJWKYDOXHVDSSO\

XSWR•& 5W  5W


RYHU•& WKHYDOXHRIWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKKDVWREHFRUUHFWHGIRUWKH
WHPSHUDWXUH

7RDOORZIRUWKHHIIHFWRISODVWLFUHVHUYHZKHUHWKHDQDO\VLVLVEDVHGRQHODVWLFLW\WKHRU\WKHVWUHVV
FRUUHFWLRQIDFWRUVLQDFFRUGDQFHZLWK7DEOH*FDQEHDSSOLHGLQWKHDVVHVVPHQWRIWKHOLPLWVWDWHIRU
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

VWUHVV

E VWUDLQ,IWKHWUDQVPLVVLRQSLSHOLQHDQDO\VLVLVEDVHGRQHODVWLFLW\WKHRU\RUXVHVWKHVWUHVVFRUUHFWLRQ
IDFWRUV H[WHQGHGHODVWLFPHWKRG VWUDLQQHHGQRWEHFRQVLGHUHG

,ILWFDQEHGHPRQVWUDWHGWKDWWKHDFWXDOVWUDLQFDSDFLW\LVJUHDWHUWKDQWKLVKLJKHUYDOXHPD\EH
XVHGDVWKHOLPLWYDOXH,QGHWHUPLQLQJVWUDLQFDSDFLW\GXHDFFRXQWVKRXOGEHWDNHQRIWKHGXFWLOLW\RIWKH
SODWHPDWHULDODQGZHOGVDQGDQ\LPSHUIHFWLRQVZKLFKWKH\FDQFRQWDLQ

127( )RUWKHDVVHVVPHQWRIWKHOLPLWVWDWHIRUIUDFWXUHUHIHUHQFHLVPDGHWRWKHIROORZLQJOLWHUDWXUH

*HQHUDO
>@ 3'³*XLGDQFHRQPHWKRGVIRUDVVHVVLQJWKHDFFHSWDELOLW\RIIODZVLQIXVLRQ
ZHOGHGVWUXFWXUHV´%ULWLVK6WDQGDUGV,QVWLWXWLRQ
3LSHOLQHRULHQWDWHGOLWHUDWXUH
>@ 6-*DUZRRG$$:LOORXJKE\35LHWMHQV³7KHDSSOLFDWLRQRI&72'PHWKRGVIRUVDIHW\
DVVHVVPHQWLQGXFWLOHSLSHOLQHVWHHOV´&RQIHUHQFHRQ)LWQHVVIRU3XUSRVH9DOLGDWLRQRI:HOGHG
&RQVWUXFWLRQV1RYHPEHU/RQGRQ
>@ -6SLHNKRXW³)LWQHVVIRU3XUSRVH$VVHVVPHQWRI:HOG)ODZV$SSOLFDWLRQRI9DULRXV
)UDFWXUH0HFKDQLFV&RGHV´:HOGLQJ-RXUQDO6HSWHPEHU

7KHUHVXOWVRIUHFHQWUHVHDUFKFDQEHXVHGLQWKHDVVHVVPHQW

F DOWHUQDWLQJ\LHOG7KHOLPLWYDOXHIRUDOWHUQDWLQJ\LHOGLVGLFWDWHGE\WKHFRQGLWLRQWKDWWKHVWUHVVYDULDWLRQV
VKRXOGILWZLWKLQWKH\LHOGHOOLSVH +XEHU+HQFN\DQG9RQ0LVHV\LHOGFULWHULRQ 

7KHVKHDUVWUHVVK\SRWKHVLVFDQDOVREHXVHGIRUDOWHUQDWLQJ\LHOGDVIROORZVWKHOLPLWYDOXHIRUKDOIRIWKH
YDULDWLRQRIWKHPD[LPXPGLIIHUHQFHEHWZHHQDQ\WZRRIWKHWKUHHSULQFLSDOVWUHVVHVGXULQJDORDGF\FOHLV
5W 

G IDWLJXH5HVXOWVRIUHFHQWUHVHDUFKVKRXOGEHDSSOLHGIRUIDWLJXHDQDO\VLV

H UHVRQDQFHDQGYRUWH[VKHGGLQJ7KHQDWXUDOIUHTXHQF\RIWKHSLSHOLQHLVFRPSDUHGDJDLQVWWKHUDQJHRI
H[FLWDWLRQIUHTXHQFLHV

2VFLOODWLRQFDQEHDYRLGHGE\GHVLJQLQJWKHSLSHOLQHVRWKDWWKHIXQGDPHQWDOIUHTXHQF\OLHVRXWVLGHWKH
EDQGRIH[FLWDWLRQIUHTXHQFLHVDQGKLJKHURUGHUYLEUDWLRQV KDUPRQLFV DUHDYRLGHG

I GHIRUPDWLRQ)RXUW\SHVRIGHIRUPDWLRQFDQEHGLVWLQJXLVKHGRYDOLW\IOH[XUDOEXFNOLQJLPSORVLRQDQG
ORFDOEXFNOLQJ

127( )RUWKHOLPLWYDOXHVUHIHUHQFHLVPDGHWR

$0*UHVQLJW³3ODVWLFGHVLJQRIEXULHGVWHHOSLSHOLQHVLQVHWWOHPHQWDUHDV´+(5219ROXPHQR


‹%6,
3DJH
(1

J GLVSODFHPHQWODWHUDOVWDELOLW\7KHSLSHOLQHVKRXOGEHVXSSRUWHGDQFKRUHGRUEXULHGVXFKWKDWXQGHUDOO
SRVVLEOHFRQGLWLRQVWKHSLSHOLQHZLOOQRWPRYHZLWKUHVSHFWWRLWVLQVWDOOHGSRVLWLRQH[FHSWIRUSHUPLWWHG
GLVSODFHPHQWGXHWRSUHVVXUHORDGVWKHUPDOORDGVDQGGLVSODFHPHQWVH[SHFWHGDIWHULQVWDOODWLRQ

,IDQXQGHUZDWHUSLSHOLQHLVQRWEXULHGFRYHUHGRUDQFKRUHGWKHSLSHOLQH
VRZQZHLJKWXQGHUDOO
FRQGLWLRQVZKHWKHUHPSW\ILOOHGZLWKPHGLXPRUILOOHGZLWKWHVWPHGLXPVKRXOGEHVXFKDVWRJXDUDQWHH
KRUL]RQWDODQGYHUWLFDOVWDELOLW\ERWKGXULQJFRQVWUXFWLRQDQGLQWKHRSHUDWLQJSKDVH

* &RQWLQJHQF\ORDGDQGVWUHVVFRUUHFWLRQIDFWRUV

)RUWKHFRQWLQJHQF\IDFWRUVIRUVRLOHQJLQHHULQJSDUDPHWHUVVHH7DEOH*
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7DEOH*&RQWLQJHQF\IDFWRUVIRUVRLOHQJLQHHULQJSDUDPHWHUVUHIHUUHGWRPHDQYDOXH

3DUDPHWHU )DFWRUV

1HXWUDOHDUWKSUHVVXUH 
3DVVLYHHDUWKSUHVVXUH 
/DWHUDOPRGXOXVRIVXEJUDGHUHDFWLRQ NO
± IRUVDQGDQGFOD\ 
± IRUSHDW 
8OWLPDWHEHDULQJFDSDFLW\
± IRUVDQGDQGFOD\ 
± IRUSHDW 
+RUL]RQWDOSDVVLYHHDUWKSUHVVXUH FRQWDFWDQJOH • DQGKRUL]RQWDOQHXWUDOVRLO
UHVLVWDQFH FRQWDFWDQJOH •
± IRUVDQG D
± IRUFOD\ 
± IRUSHDW 
6RLOIULFWLRQ 
5HODWLYHGLVSODFHPHQWUHTXLUHGIRUPD[LPXPVRLOIULFWLRQ IULFWLRQDOHODVWLFLW\ 
)ULFWLRQDOEHGGLQJFRQVWDQW NZ E
D
7KHVHFRQWLQJHQF\IDFWRUVDUHSDUWO\EDVHGRQFXUUHQWSLSHOD\LQJSUDFWLFH
E
6RLOIULFWLRQ Z DQGGLVSODFHPHQW WRJHWKHUJLYHWKHIULFWLRQDOEHGGLQJFRQVWDQWNZ Z IRUZKLFKWKH
FRQWLQJHQF\IDFWRULV

7KHVRLOHQJLQHHULQJSDUDPHWHUVUHIHUWRPHDQYDOXHV'HSHQGLQJRQWKHVLWXDWLRQWKHVRLOHQJLQHHULQJ
SDUDPHWHUVDUHPXOWLSOLHGRUGLYLGHGE\WKHIDFWRU(VVHQWLDOO\WKLVPHDQVWKDWWKHFULWLFDOFRPELQDWLRQVKLJKKLJK
KLJKORZORZKLJKDQGORZORZRINODQGNZDUHGHWHUPLQHG,QPRVWFDVHVLWLVRQO\QHFHVVDU\WRFDOFXODWHWKH
KLJKKLJKFRPELQDWLRQH[FHSWIRUVPDOOGLDPHWHUV7KHFRPELQDWLRQVKLJKORZRUORZKLJKDUHSK\VLFDO
LPSRVVLELOLWLHV

)RUORDGIDFWRUVDVDIXQFWLRQRIORDGW\SHVHH7DEOH*

‹%6,
3DJH
(1

7DEOH*/RDGVSDUWLDOORDGIDFWRUV

&KDUDFWHULVWLFORDGV /RDGIDFWRUV

&RQVWUXFWLRQSKDVH 2SHUDWLRQDOSKDVH

SLSHOLQHVHFWLRQV SLSHOLQH VWDWLRQV


VWDWLRQV VHFWLRQV

,QWHUQDOSUHVVXUH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± SHUPDQHQW  

± LQFLGHQWDO  

([WHUQDOSUHVVXUH   

6HOIZHLJKW
± SLSHOLQHFRPSRQHQWV
± FRDWLQJ IRUFRUURVLRQZHLJKWLQVXODWLRQ  
± FRQWHQWV
± EXR\DQF\

6RLOORDGV   

7UDIILFORDGV  

7HPSHUDWXUHYDULDWLRQV  

,PSRVHGGHIRUPDWLRQ

± GLIIHUHQWLDOVHWWOHPHQW  


± WUHQFKIORRULUUHJXODULWLHV
± GHIRUPDWLRQGXULQJKRUL]RQWDOGLUHFWLRQDO
GULOOLQJ
± WRZLQJRXWFURVVLQJV

± HODVWLFEHQGV    

0HWHRURORJLFDOORDGV

± ZLQG    


± VQRZ
± LFLQJWKDZLQJLFHEUHDNXSIURVWKHDYH

&RQVWUXFWLRQORDGV  
127(6RLOORDGVGHWHUPLQHGLQDGYDQFHDSSO\LQJFRQWLQJHQF\IDFWRUVLQDFFRUGDQFHZLWK7DEOH*
127(7KHORDGIDFWRUIRUWKHPRGXOXVRIVXEJUDGHUHDFWLRQDQGIULFWLRQDOEHGGLQJFRQVWDQWLV

‹%6,
3DJH
(1

7DEOH*±&RPELQLQJVWUHVVHVWRREWDLQUHVXOWDQWVWUHVVIRUH[WHQGHGHODVWLFGHVLJQ

6WUHVVFDWHJRU\ 6WDWHRIVWUHVV $VVRFLDWHGUHVXOWDQWVWUHVVWREH


DVVHVVHG VHH7DEOH*

3ULPDU\PHPEUDQHVWUHVV SP  Y
3ULPDU\EHQGLQJVWUHVV SE D
6HFRQGDU\PHPEUDQHVWUHVV VP D
6HFRQGDU\EHQGLQJVWUHVV VE D
7RWDOSULPDU\VWUHVV SP SE  Y
7RWDOPHPEUDQHVWUHVV SP VP  Y
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

5HVXOWDQWRISULPDU\DQG
VHFRQGDU\VWUHVVHVH[FOSHDN U  SP SE VP VE  Y
VWUHVV
6HFRQGDU\SHDNVWUHVV VD E
7RWDOVWUHVV W  U VD E
D
7KHVHVWDWHVRIVWUHVVKDYHQRLQGLYLGXDOVLJQLILFDQFHLQDVVHVVPHQWXQGHUHODVWLFLW\WKHRU\
E
7KHVHVWDWHVRIVWUHVVDUHUHOHYDQWRQO\WRDVVHVVPHQWRIWKHOLPLWVWDWHIRUIDWLJXH
)RUVWUDLJKWSLSHDQGVPRRWKEHQGVWKH\QHHGQRWEHLQYHVWLJDWHGVHSDUDWHO\LIWKHIDWLJXHFKHFN
DFFRUGLQJWR*GLVFDUULHGRXW

7DEOH*LQGLFDWHVWKHFDWHJRULHVZKLFKSOD\DGRPLQDQWUROHLQWKHHYDOXDWLRQSURFHVVIRUDQXPEHURIFRPPRQO\
RFFXUULQJVLWXDWLRQV

7DEOH*RXWOLQHVWKHSURFHGXUHIRUDVVHVVLQJWKHH[WHQGHGHODVWLFGHVLJQ

6WUHVVHVDFWLQJRQWKHVDPHSRLQWDWWKHVDPHWLPHDQGLQWKHVDPHGLUHFWLRQFDQJHQHUDOO\EHFRPELQHG

7KHFRPSRVLWHVWUHVVHVDQGWKHUHVXOWDQWVWUHVV YGHULYHGIURPWKHPDUHREWDLQHGE\FRPELQLQJWKHVWUHVV
FDWHJRULHV 7DEOH* 

,QRUGHUWRWDNHDFFRXQWRIWKHSRVVLEOHUHGLVWULEXWLRQRIVWUHVVHVGXHWRWKHSODVWLFUHVHUYHRIWKHPDWHULDOWKH
UHVXOWDQWVWUHVVHVFDOFXODWHGE\HODVWLFLW\WKHRU\DUHGLYLGHGE\VWUHVVFRUUHFWLRQIDFWRUVZKHQDVVHVVLQJWKHP
DJDLQVWWKHOLPLWVWDWHYDOXHV 7DEOH* 

‹%6,
3DJH
(1

7DEOH*&DWHJRUL]DWLRQDQGTXDOLILFDWLRQRIVWUHVVHVUHODWHGWRRULJLQDWLQJORDGFRPSRQHQWDQGFULWHULD

/RDG &ULWHULDDQGSLSHVRLO 3LSHOLQH 6WUHVVHV


LQWHUDFWLRQ VHFWLRQ

FDW D[LDO WDQJ


,QWHUQDOH[WHUQDO VWUDLJKW S P P
SUHVVXUH EHQG S PE PED
6HOIZHLJKWSUHVVXUH 'RHVQRWIROORZVRLO VWUDLJKW S P E E
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

VHWWOHPHQWRUWUHQFKSURILOHRU EHQG S PE ED


IUHHVSDQ
)ROORZVVRLOVHWWOHPHQWRU VWUDLJKW V P E E
WUHQFKSURILOH EHQG V PE ED
6RLOORDGV )ROORZVVRLOVHWWOHPHQWRU VWUDLJKW S E E
GLUHFWO\WUDQVPLWWHG WUHQFKSURILOH EHQG S E E
7UDIILFORDGV VWUDLJKW S E E
GLUHFWO\WUDQVPLWWHG EHQG S E E
7HPSHUDWXUH VWUDLJKW V P QD
YDULDWLRQV EHQG V PE ED
,PSRVHGGHIRUPDWLRQ 'RHVQRWIROORZVRLO VWUDLJKW S P E E
±GLIIVHWWOHPHQW VHWWOHPHQWRUWUHQFKSURILOHRU EHQG S PE ED
IUHHVSDQ
±WUHQFKLUUHJXODULWLHV
)ROORZVVRLOVHWWOHPHQWRU VWUDLJKW V P E E
WUHQFKSURILOH EHQG V P E E
±HODVWLFEHQGV VWUDLJKW V P E E
0HWHRURORJLFDOORDGV )ROORZVWUHQFKSURILOH VWUDLJKW V P E E
EHQG V PE ED
)UHHVSDQ VWUDLJKW S P E E
EHQG S PE ED
127( 7KHFRPSRQHQWVEHWZHHQEUDFNHWVXQGHUWKHKHDGLQJ³D[LDO´DUHFRPSRQHQWVJHQHUDWHGE\WKHUHVWUDLQWRI
ODWHUDOFRQWUDFWLRQE\WDQJHQWLDOEHQGLQJ
127( 6WUHVVFRQFHQWUDWLRQVDWGLVFUHWHVXSSRUWVDUHQRWLQFOXGHGLQWKHDERYHWDEOH
D
7KLVWDEOHUHIHUVRQO\WRWKHUHOHYDQWVWUHVVHV)RUGHWDLOHGH[SODQDWLRQDQGDQDO\VLVRIVWUHVVHVDWEHQGV
UHIHUHQFHLVPDGHWR$60(%RLOHUDQG3UHVVXUH9HVVHO&RGHVHFWLRQ,,,GLYLVLRQ,VXEVHFWLRQ1%

‹%6,
3DJH
(1

7DEOH*$VVHVVPHQWRIOLPLWVWDWHVIRUH[WHQGHGHODVWLFDQDO\VLVVWUHVVFRUUHFWLRQIDFWRUV

&DOFXODWLRQORDGV &KDUDFWHULVWLFORDG[SDUWLDOORDGIDFWRU
 VHH7DEOH*

&DOFXODWLRQ 5LQJFDOFXODWLRQ!KRRSVWUHVV S
%HDPFDOFXODWLRQD!IRUFHVDQGPRPHQWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

&DOFXODWLRQVWUHVVHV 6WUHVVFRPELQDWLRQVDQGUHVXOWDQWVWUHVVHV
VHH7DEOH*

$VVHVVPHQW

5HVXOWDQWVWUHVV 6WUHVVFRUUHFWLRQIDFWRU /LPLWVWUHVV

S KRRSVWUHVV 

Y SP 

Y SPSE  5W

Y SPVP 

Y SPSEVPVE 

D
%HDPFDOFXODWLRQFDQEHEDVHGRQWKHVSHFLILHGZDOOWKLFNQHVVDFFRUGLQJWR(1
LQVWHDGRIPLQLPXPZDOOWKLFNQHVV
5W VSHFLILHGPLQLPXP\LHOGVWUHQJWKDW•&
5W PLQLPXP\LHOGVWUHQJWKDWq•&

‹%6,
3DJH
(1

$QQH[+ LQIRUPDWLYH

6RLOPHFKDQLFVSDUDPHWHUV

+ 3DUDPHWHUV

'HSHQGLQJRQWKHVFRSHRIWKHDQDO\VLVGLIIHUHQWVRLOHQJLQHHULQJSDUDPHWHUVFDQEHUHOHYDQW

D DQDO\VLVRIORDGVRQWKHSLSHOLQHGXHWRJURXQG DWUHVWFRQGLWLRQV 
± QHXWUDOYHUWLFDOHDUWKSUHVVXUH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± QHXWUDOKRUL]RQWDOHDUWKSUHVVXUH
7KHVHORDGVDFWXSRQWKHSLSHZKHQWKHUHLVQRPRYHPHQWEHWZHHQWKHSLSHDQGWKHVXUURXQGLQJVRLORU
ZKHQWKHPRYHPHQWVLQYHUWLFDODQGKRUL]RQWDOGLUHFWLRQVDUHGLVUHJDUGHG

E DQDO\VLVRILQWHUDFWLRQEHWZHHQSLSHDQGVXUURXQGLQJVRLO
± SDVVLYHYHUWLFDOHDUWKSUHVVXUH
± XOWLPDWHYHUWLFDOEHDULQJFDSDFLW\
± XOWLPDWHKRUL]RQWDOEHDULQJFDSDFLW\
± DFWLYHKRUL]RQWDOHDUWKSUHVVXUH
± PD[LPXPIULFWLRQUHVLVWDQFH
± VRLOVWLIIQHVV
7KHUHLVLQWHUDFWLRQ H[FKDQJHRIDFWLRQV EHWZHHQWKHSLSHOLQHDQGWKHVXUURXQGLQJVRLOZKHQWKHSLSHOLQH
RIIHUVUHVLVWDQFHHYHQLIRQO\VOLJKWWRJURXQGPRYHPHQWVRUZKHQWKHSLSHOLQHPRYHVGXHWRWKHHIIHFWVRI
WKHORDGVLPSRVHGRQLW

1HXWUDOYHUWLFDOHDUWKSUHVVXUH7KLVLVHTXDOWRWKHZHLJKWRIWKHYHUWLFDOFROXPQRIVRLODERYHWKHSLSH VHH
OLWHUDWXUH>@ 

1HXWUDOKRUL]RQWDOHDUWKSUHVVXUH7KLVLVHTXDOWRWKHQHXWUDOYHUWLFDOHDUWKSUHVVXUHPXOWLSOLHGE\WKHFRHIILFLHQW
RIHDUWKSUHVVXUHDWUHVW VHHOLWHUDWXUH>@ 

3DVVLYHYHUWLFDOHDUWKSUHVVXUH7KLVORDGDFWVRQWKHWRSRIWKHSLSHOLQHLILWLVXQDEOHWRIROORZYHUWLFDO
GRZQZDUGPRYHPHQWVRIWKHVXUURXQGLQJPDVVRIVRLORULVRQO\DEOHWRIROORZVXFKPRYHPHQWVSDUWLDOO\

7KLVLVDOVRWKHXSSHUOLPLWRIUHVLVWDQFHIRUXSZDUGPRYHPHQWRIWKHSLSHOLQH VHHOLWHUDWXUH>@>@DQG>@IRU
VDQGVDQGOLWHUDWXUH>@IRUFOD\V 

8OWLPDWHYHUWLFDOEHDULQJFDSDFLW\7KLVLVWKHXSSHUOLPLWRIUHVLVWDQFHWRGRZQZDUGSLSHOLQHPRYHPHQWDQGLV
WKHORDGQHHGHGWRFDXVHWKHVRLOXQGHUWKHSLSHOLQHWRIDLORYHUWKHIXOOSLSHOLQHZLGWK VHHOLWHUDWXUH>@ 

8OWLPDWHKRUL]RQWDOEHDULQJFDSDFLW\$VVRRQDVWKHSLSHOLQHPRYHVKRUL]RQWDOO\DWULJKWDQJOHVWRLWVD[LVWKH
ODWHUDOHDUWKSUHVVXUHFKDQJHVIURPWKHQHXWUDOHDUWKSUHVVXUHWRWKHXSSHUOLPLWRIODWHUDOKRUL]RQWDOVRLO
UHVLVWDQFH7KLVLVWKHORDGQHHGHGWRFDXVHWKHVRLOODWHUDOWRWKHSLSHOLQHWRIDLORYHUWKHIXOOSLSHOLQHZLGWK VHH
OLWHUDWXUH>@IRUVDQGVDQGOLWHUDWXUH>@IRUFOD\V 

&RQVROLGDWHGVDQGZLOOJLYHWKLVUHDFWLRQEXWZLWKFRPSUHVVLEOHVRLOVWKHLQFUHDVHLQKRUL]RQWDOVWUHVVLQWKHVRLOZLOO
LQLWLDWHDFRQVROLGDWLRQSURFHVVZKLFKZLOOYLUWXDOO\FDQFHORXWWKHLQLWLDODFWLRQUHDFWLRQ7KHXSSHUOLPLWRIKRUL]RQWDO
HDUWKSUHVVXUHLVGHWHUPLQHGE\WKHKRUL]RQWDOXOWLPDWHEHDULQJFDSDFLW\

(;$03/( &OD\DQGSHDW

$FWLYHKRUL]RQWDOHDUWKSUHVVXUH7KLVLVWKHPLQLPXPHDUWKSUHVVXUHZKHQWKHEXULHGSLSHOLQHPRYHVDZD\
IURPWKHHDUWKSUHVVXUH VHHOLWHUDWXUH>@ 

0D[LPXPIULFWLRQDOUHVLVWDQFH7KLVLVWKHXSSHUOLPLWUHVLVWDQFHIRUD[LDOGLVSODFHPHQWRUURWDWLRQRIWKHSLSHOLQH
LQWKHVRLO VHHOLWHUDWXUH>@>@DQG>@ 

6RLOVWLIIQHVV7KLVLVWKHUHDFWLRQRIWKHVRLOWRGLVSODFHPHQWRIWKHSLSHOLQH PRGXOXVRIVXEJUDGHUHDFWLRQ ,WFDQ


EHUHJDUGHGDVWKHWDQJHQWPRGXOXVRIWKHIRUFHGLVSODFHPHQWGLDJUDP VHHOLWHUDWXUH>@DQG>@  7KHPRGXOXV
RIVXEJUDGHUHDFWLRQLVDIXQFWLRQSULQFLSDOO\RIWKHPRGXOXVRIHODVWLFLW\RIWKHVRLODQGWKHSLSHOLQHGLDPHWHU

‹%6,
3DJH
(1

+ 6RLOHQJLQHHULQJVWXG\

7KHSXUSRVHRIWKHVRLOHQJLQHHULQJVWXG\LVWRGHWHUPLQHWKHSURSHUWLHVRIWKHVRLOZKLFKDUHUHOHYDQWWRWKH
VWUHQJWKDQDO\VLV$OORZDQFHVKRXOGEHPDGHIRUYDULRXVVRXUFHVRIXQFHUWDLQW\

7ZRSULQFLSDOVRXUFHVRIXQFHUWDLQW\DUH

± 7KHIDFWWKDWWKHH[DPLQDWLRQVDUHFDUULHGRXWDWDOLPLWHGQXPEHURISRLQWVDORQJWKHSLSHOLQHD[LVDQGWKH
VRLOSURSHUWLHVEHWZHHQWKHVHSRLQWVFDQEHGLIIHUHQW
± 7KHIDFWWKDWVRLODQDO\VLVLQYROYHVGHULYLQJWKHVRLOPHFKDQLFVSDUDPHWHUVUHTXLUHGIRUSLSHOLQHDQDO\VLV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

IURPWKHUHVXOWVRISHQHWUDWLRQWHVWVDQGVRLOVDPSOHV7KHVDPSOLQJSURFHGXUHDQGWKHPRGHOVXVHGIRUWKLV
SXUSRVHVKRXOGPDNHDOORZDQFHIRUWKHXQFHUWDLQWLHVZKLFKDUHLQWURGXFHG

7KHUHVXOWVRIWKHVRLOHQJLQHHULQJVWXG\VKRXOGWKHUHIRUHEHUHJDUGHGDVPHDQYDOXHV,QUHDOLW\WKHVRLO
HQJLQHHULQJSDUDPHWHUVFDQEHJUHDWHURUVPDOOHUWKDQWKRVHREWDLQHGIURPWKHVRLOHQJLQHHULQJVWXG\6LQFHWKH
SLSHOLQHDQDO\VLVKDVWREHEDVHGRQFKDUDFWHULVWLFYDOXHVIRUORDGVDQGPDWHULDOSURSHUWLHVWKHPHDQVRLO
HQJLQHHULQJSDUDPHWHUVVKRXOGEHPXOWLSOLHGRUGLYLGHGE\FRQWLQJHQF\IDFWRUVWRDUULYHDWWKHVHFKDUDFWHULVWLF
YDOXHV VHH7DEOH* 

7KHVRLOHQJLQHHULQJUHSRUWVKRXOGFOHDUO\VWDWHZKHWKHUWKHVHFRQWLQJHQF\IDFWRUVKDYHEHHQWDNHQLQWRDFFRXQW

+ /LWHUDWXUH

>@ 7HU]DJKL³)XQGDPHQWDOVRIVRLOPHFKDQLFV´-RKQ:LOH\DQG6RQV1HZ<RUN
>@ &ODUNH³%XULHGSLSHOLQHV´0F/DUHQDQG6RQV/RQGRQ
>@ 0*6SDQJOHU³6RLO(QJLQHHULQJ´,QWHUQDWLRQDO7H[WERRN&RPSDQ\6FUDQWRQ
>@ 7UDXWPDQQ2
5RXUNH.XOKDZ\³8SOLIWIRUFHGLVSODFHPHQWUHVSRQVHRIEXULHGSLSH´-RXUQDORI
*HRWHFKQLFDO(QJLQHHULQJYRO,,,QR6HSWHPEHU
>@ $6&(³*XLGHOLQHVIRUWKHVHLVPLFGHVLJQRIRLODQGJDVSLSHOLQHV´1HZ<RUN
>@ -%ULQFK+DQVHQ³$UHYLVHGDQGH[WHQGHGIRUPXODIRUEHDULQJFDSDFLW\´%XOOHWLQ1R'DQLVK
*HRWHFKQLFDO,QVWLWXWHSS&RSHQKDJHQ
>@ 7UDXWPDQQ2
5RXUNH³/DWHUDOIRUFHGLVSODFHPHQWUHVSRQVHRIEXULHGSLSH´-RXUQDORI*HRWHFKQLFDO
(QJLQHHULQJYRO,,,QR6HSWHPEHU
>@ -*3RW\RQG\³6NLQIULFWLRQEHWZHHQYDULRXVVRLOVDQGFRQVWUXFWLRQPDWHULDOV´*pRWHFKQLTXH;QR
>@ ,/LWWOHWRQ³$QH[SHULPHQWDOVWXG\RIWKHDGKHVLRQEHWZHHQFOD\DQGVWHHO´-RXUQDORI7HUUDPHFKDQLFVYRO
QR
>@ $XGLEHUW1\PDQQ³6RLOUHVWUDLQWDJDLQVWKRUL]RQWDOPRWLRQRISLSHV´-RXUQDORIWKH*HRWHFKQLFDO
(QJLQHHULQJ'LYLVLRQ$6&(YROQR*72FWREHU
>@ 7KRPDV³'LVFXVVLRQRIVRLOUHVWUDLQWDJDLQVWKRUL]RQWDOPRWLRQRISLSHV´-RXUQDORIWKH*HRWHFKQLFDO
(QJLQHHULQJ'LYLVLRQ$6&(YROQR*76HSWHPEHU
>@ 67LPRVKHQNRDQG-1*RRGLHU³7KHRU\RIHODVWLFLW\´0F*UDZ+LOO
>@ %%%URPV³&RHIILFLHQWRIODWHUDOVXEJUDGHUHDFWLRQ´-RXUQDORIWKH6RLO0HFKDQLFVDQG)RXQGDWLRQ
'LYLVLRQ$6&(6HSWHPEHUDQG0DUFK
>@ -%ULQFK+DQVHQ³7KHXOWLPDWHUHVLVWDQFHRIULJLGSLOHVDJDLQVWWUDQVYHUVDOIRUFHV´'DQLVK*HRWHFKQLFDO
,QVWLWXWH%XOOHWLQ&RSHQKDJHQ
>@ $.r]GL³(UGGUXFNWKHRULHQ´6SULQJHU9HUODJ
>@ 9HVLF³%UHDNRXWUHVLVWDQFHRIREMHFWVHPEHGGHGLQRFHDQERWWRP´-RXUQDORIWKH6RLO0HFKDQLFVDQG
)RXQGDWLRQV'LYLVLRQ$6&(YROQR606HSWHPEHU
>@ 5RZH'DYLV³7KHEHKDYLRXURIDQFKRUSODWHVLQVDQG´*pRWHFKQLTXHYROQR0DUFK
>@ 2YHVHQ³$QFKRUVODEFDOFXODWLRQPHWKRGVDQGPRGHOWHVWV´'DQLVK*HRWHFKQLFDO,QVWLWXWH%XOOHWLQ
&RSHQKDJHQ
>@ 0DW\DV'DYLV³3UHGLFWLRQRIWKHYHUWLFDOHDUWKORDGVRQULJLGSLSHV´-RXUQDORIWKH*HRWHFKQLFDO
(QJLQHHULQJ'LYLVLRQ$6&(YROQR)HEUXDU\
>@ +-$0+HUJDUGHQ$+5RO³*URQGRQGHU]RHNJHGUDJEXLVOHLGLQJLQNOHL2QGHU]RHNXLWJHYRHUGWH
.HVWHUHQLQ %HKDYLRXURISLSHOLQHVLQFOD\WHVWVFDUULHGRXWLQ.HVWHUHQ ´ LQ'XWFK 5HSRUW
&2'HOIW*HRWHFKQLFV
>@ 6HOYDGXUDL/HH7RGHVFKLQL6RPHV³/DWHUDOVRLOUHVLVWDQFHLQSLSHVRLOLQWHUDFWLRQ´3URFHHGLQJVRIWKH
&RQIHUHQFHRQ3LSHOLQHVLQ$GYHUVH(QYLURQPHQWV,,$6&(HGLWHGE\0%3LFNHOO6DQ'LHJR&DOLIRUQLD


‹%6,
3DJH
(1

$QQH[, LQIRUPDWLYH

%RUHGMDFNHGFURVVLQJV

, *HQHUDO

,PSRUWDQWDVSHFWVWREHFRQVLGHUHGZKHQVHOHFWLQJWKHERULQJPHWKRG IRUERULQJPHWKRGVVHH³7UHQFKOHVV
FURVVLQJV´LQFODXVHIXUWKHULQIRUPDWLRQFDQEHIRXQGLQOLWHUDWXUH>@ DUH

± WKHH[FDYDWLRQRIWKHZRUNLQJSLWV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± ZHOOSRLQWLQJIRUGHZDWHULQJ
± SRVVLEOHVHHSDJHDORQJWKHSLSHOLQHVHFWLRQ
± JHRWHFKQLFDOVLWXDWLRQDWWKHORFDWLRQRIWKHFURVVLQJ
± WKHUHTXLUHGDFFXUDF\RILQVWDOODWLRQ
± DOORZDEOHVXUIDFHVHWWOHPHQWRUKHDYHIURPFRQVWUXFWLRQRIWKHFURVVLQJ
± HQYLURQPHQWDODVSHFWV

7KHDOORZDEOHPXGSUHVVXUHLQUHODWLRQWRFRYHUIRUERULQJPHWKRGVZKLFKXVHGULOOLQJPXGIRUMHWWLQJWKHVRLODQG
UHPRYLQJDQGWUDQVSRUWLQJWKHFXWWLQJVVKRXOGEHFDOFXODWHGLQDFFRUGDQFHZLWKOLWHUDWXUH>@

, 6WUHQJWKFDOFXODWLRQ

, +RUL]RQWDOGLUHFWLRQDOGULOOLQJ

7KHIROORZLQJSKDVHVVKRXOGEHDQDO\]HGLQWKHSLSHOLQHGHVLJQSURFHVV

D  SUHGLVSRVLWLRQRIWKHODXQFKLQJFDWHQDU\%HIRUHWKHSXOOLQJRSHUDWLRQWKHSLSHOLQHLVRXWVLGHWKH
ERUHKROHDQGKDVDFRQILJXUDWLRQZKLFKDOORZVLWWRHQWHUWKHKROH'XULQJWKLVSKDVHWKHRQO\EHQGLQJ
PRPHQWLVGXHWRWKHFXUYDWXUHRIWKHFDWHQDU\DQGWKHZHLJKW
7KHSLSHOLQHVKRXOGEHGHVLJQHGVRWKDWLWEHKDYHVHODVWLFDOO\
E  SXOOEDFNRSHUDWLRQ,QWKLVSKDVHWKHSLSHOLQHZLOOEHSXOOHGEDFNWKURXJKWKHERUHKROH
7KHIROORZLQJIRUFHVVKRXOGEHFRQVLGHUHG
± EHQGLQJPRPHQWGXHWRFXUYDWXUHRIWKHKROH
± IULFWLRQIRUFHEHWZHHQWKHSLSHDQGGULOOLQJPXG
± IULFWLRQIRUFHLQVLGHWKHKROHDWWKHORFDWLRQZKHUHWKHVRLOUHDFWLRQRFFXUV
± VWUHVVGXHWRVRLOUHDFWLRQ
7KHUHVXOWDQWVWUHVVVKRXOGEHFDOFXODWHGDQGWKHSLSHOLQHGHVLJQHGWREHKDYHHODVWLFDOO\
F  RSHUDWLQJFRQGLWLRQV,QWKLVSKDVHWKHORDGVDFWLQJRQWKHSLSHOLQHDUH
± EHQGLQJPRPHQWGXHWRFXUYDWXUHRIWKHKROH
± LQWHUQDOSUHVVXUHRIWKHJDV
± WHPSHUDWXUHGLIIHUHQFHRIWKHOLQHEHWZHHQWKHSLSHOD\LQJDQGRSHUDWLQJFRQGLWLRQV
± GHDGORDGV VHH 
9HUWLFDOVRLOORDGDWWKHWRSRIWKHSLSHFDQEHFDOFXODWHGIRUGLIIHUHQWSLSHOD\LQJFRQGLWLRQV VHH
OLWHUDWXUH>@DQG>@ 
± OLYHORDGV VHH 
9HUWLFDOVRLOORDGDWWKHWRSRIWKHSLSHFDQEHFRPSXWHGE\PHDQVRI%RXVVLQHVTDQG1HZPDUN
DQDO\VLV VHHOLWHUDWXUH>@ ,PSDFWIDFWRUVVKRXOGEHLQFOXGHG

7KHIROORZLQJHIIHFWVVKRXOGEHFRPELQHGIRUWKHSXUSRVHVRIFDOFXODWLQJWKHUHVXOWDQWVWUHVV

± FDOFXODWHGORQJLWXGLQDOHIIHFWVRQWKHHQWLUHSLSHOLQHV\VWHP
± FDOFXODWHGHIIHFWVRQWKHFURVVVHFWLRQRIWKHSLSHOLQH

7KHVWUHVVVWUDLQYDOXHVJLYHQLQVKRXOGQRWEHH[FHHGHG

7KHHIIHFWVRIVRLOORDGRQWKHFURVVVHFWLRQRIWKHSLSHFDQEHREWDLQHGE\PHDQVRIWKHIROORZLQJDQDO\VLV7KLV
DQDO\VLVVKRXOGEHFDUULHGRXWDWWKHGHHSHVWSRLQWUHDFKHGLQGULOOLQJ

‹%6,
3DJH
(1

7KHPD[LPXPEHQGLQJPRPHQWRQWKHSLSHZDOO ERWWRP GXHWRYHUWLFDOVRLOORDGLV

0 4 = T' 

ZKHUH

04 LVDEHQGLQJPRPHQWLQQHZWRQPLOOLPHWUHV 1PP 
T LVWKHYHUWLFDOORDGDWWKHWRSRIWKHSLSHGXHWRGHDGDQGOLYHORDGVLQQHZWRQVSHUVTXDUH
PLOOLPHWUH 1PP 
' LVWKHRXWVLGHSLSHGLDPHWHULQDFFRUGDQFHZLWK(1LQPLOOLPHWUHV PP 
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHHODVWLFEHQGLQJRIWKHSLSHLQVLGHWKHKROHFDXVHVDUHDFWLRQE\WKHVRLOTU7KHPD[LPXPEHQGLQJPRPHQWRQ
WKHSLSHZDOO ERWWRP GXHWRVRLOLV

0 4U =  T U ' 

T U = \. R

LQZKLFK

0l 
\ =
. R'

(O
0=
5

. R'
l =  PP - 
(,

ZKHUH

TU LVWKHVRLOUHDFWLRQLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
.R LVWKHPRGXOXVRIVXEJUDGHUHDFWLRQLQQHZWRQVSHUFXELFPLOOLPHWUH 1PP  
5 LVWKHEHQGLQJUDGLXVLQPLOOLPHWUHV PP 
, LVWKHPRPHQWRILQHUWLDLQPLOOLPHWUHVWRWKHSRZHURIIRXU PP 
( LVWKHPRGXOXVRIHODVWLFLW\LQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  

,IDUFKLQJSOD\VDSDUW LQJHQHUDOIRUVRLOGHSWKVJUHDWHUWKDQ%EXWWKLVFDQDOVREHWKHFDVHDWOHVVHUGHSWKV 
WKHDVVXPSWLRQRIQHXWUDOVRLOORDGLVFRQVHUYDWLYH,QVXFKFDVHVWKHYHUWLFDOVRLOORDGFDQEHUHGXFHGDVIROORZV
VHHOLWHUDWXUH>@>@>@DQG>@ 

% (g ‡ - F  % )
T=
. WDQf
(
 - H .KWDQf  % )
ZKHUH

% = ' + 'WDQ(• - f ) ˜ U

ZKHUH

T LVWKHUHGXFHGYHUWLFDOVRLOORDGRQWKHSLSHLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
' LVWKHRXWVLGHSLSHGLDPHWHULQPLOOLPHWUHV PP 
U LVWKHKROHUDGLXVLQPLOOLPHWUHV PP 
. LVWKHFRHIILFLHQWRIKRUL]RQWDOHDUWKSUHVVXUH . VLQ 
K LVWKHGHSWKRIWKHKROHEHORZWKHVXUIDFHLQPLOOLPHWUHV PP 
F LVWKHFRKHVLRQLQQHZWRQVSHUVTXDUHPLOOLPHWUH LIF!%
XVHF %

LVWKHDQJOHRIVKHDULQJUHVLVWDQFHLQGHJUHHV

LVWKHHIIHFWLYHXQLWZHLJKWRIWKHVRLOLQQHZWRQVSHUFXELFPLOOLPHWUH 1PP  

‹%6,
3DJH
(1

,QFRPSUHVVLEOHVRLOVVXFKDVSHDWDQGVRIWFOD\WKHIRUPXODLVYDOLGRQO\IRUWKHVLWXDWLRQLPPHGLDWHO\DIWHU
FRQVWUXFWLRQ7KHLQLWLDOO\YHUWLFDOVKHDUVWUHVVHV SRVLWLYHIULFWLRQ ZKLFKUHGXFHWKHYHUWLFDOVRLOORDGRQWKHSLSH
GHFUHDVHGXHWRVHWWOHPHQW FRQVROLGDWLRQ RIWKHDGMDFHQWVRLOFROXPQVFDXVHGE\WKHVDPH KHUHQHJDWLYH
IULFWLRQ

7KHPD[LPXPPRELOL]DEOHSRVLWLYHQHJDWLYHIULFWLRQIROORZVIURP

)PD[ = (Kg ‡ - T )%


Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHXQFRUUHFWHGDFWXDOO\PRELOL]HGIULFWLRQLV

)PD[
)UX =
% (+ - K )a
+
Ë ) Û
&+ ÌÌ PD[ + d G ÜÜ
Í %N Y Ý

ZKHUH

+ LVWKHWKLFNQHVVRIWKHFRPSUHVVLEOHVRLOVWUDWXPLQPLOOLPHWUHV PP 
LVDGLPHQVLRQOHVVIDFWRU  OQ KKUHI ZLWKKUHI P
& LVWKHFRPSUHVVLRQLQGH[
NY LVWKHPRGXOXVRIVXEJUDGHUHDFWLRQRIWKHEHQWRQLWHVRLOPL[WXUHDIWHUVWLIIHQLQJLQQHZWRQV
SHUFXELFPLOOLPHWUH 1PP 
G LVWKHUHODWLYHGLVSODFHPHQWEHWZHHQVRLOFROXPQVUHTXLUHGIRUIXOOGHYHORSPHQWRIIULFWLRQLQ
PLOOLPHWHUV PP

7KHFRUUHFWLRQIDFWRULVIF 

7KHFRUUHFWHG DFWXDOO\ PRELOL]HGIULFWLRQIROORZVIURP)U )UXIF

7KHUHVXOWLQJVRLOORDGDIWHUFRQVROLGDWLRQLV

(Kg ‡% - )U )
T=
%

7KHKRUL]RQWDOVXSSRUWSUHVVXUHLV

T K = WDQ [ 
( • -  f )T ]
-  F  WDQ ( • -  f )  VLQ •

ZKHUH

TK LVWKHKRUL]RQWDOVXSSRUWSUHVVXUHLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  

7KLVKRUL]RQWDOVXSSRUWSUHVVXUHLVUHOHYDQWRQO\IRUWKHVLWXDWLRQZLWKRXWLQWHUQDOSUHVVXUH

2WKHUPHWKRGVIRUUHGXFLQJWKHYHUWLFDOVRLOORDGFDQEHGHULYHGIURPOLWHUDWXUH>@

‹%6,
3DJH
(1

, -DFNHGERUHGFURVVLQJV

7KHIROORZLQJSKDVHVVKRXOGEHDQDO\]HGLQWKHGHVLJQSURFHVV

D SXVKLQJRSHUDWLRQV'XULQJWKLVSKDVHWKHSLSH RUFDVLQJ LVSXVKHGLQWRWKHJURXQG


7KHORDGVDFWLQJDUH
± SXVKLQJIRUFH
± DQ\EHQGLQJPRPHQWGXHWRFXUYDWXUHRIWKHKROH

E OD\LQJFRQGLWLRQV7KHSLSH FDVLQJ VKRXOGEHGHVLJQHGWRZLWKVWDQGWKHVXSHULPSRVHGORDGV


Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± GHVLJQSUHVVXUHDQGGHVLJQWHPSHUDWXUH
± GHDGORDGV
± OLYHORDGV
± DQ\EHQGLQJPRPHQWGXHWRFXUYDWXUHRIWKHKROH

,IWKHFULWHULDIRUVHWWOHPHQWDUHDVJLYHQLQ$QQH[% XQGHU% DUHQRWPHWWKHFDOFXODWLRQVKRXOGEHSHUIRUPHG


WDNLQJLQWRDFFRXQWWKHFRQVWUXFWLRQVHWWOHPHQWVDWWKHHQGVRIWKHERULQJDVUHIHUUHGWRLQ$QQH[%XQGHU%7KH
DQJOHRIVXSSRUWIRUERULQJVFDQEHWDNHQDV•)RUFDVLQJVVHHDOVR

, /LWHUDWXUH

>@ '6WHLQ.0|OOHUV5%LHOHFNL³0LFURWXQQHOOLQJ´(UVW 6RKQ%HUOLQ


>@ +-/XJHU+-$0+HUJDUGHQ³'LUHFWLRQDOGULOOLQJLQVRIWVRLO,QIOXHQFHRIPXGSUHVVXUHV´
1R'LJ
>@ &ODUNH³%XULHGSLSHOLQHV´0F/DUHQDQG6RQV/RQGRQ
>@ .7HU]DJKL³7KHRUHWLFDOVRLOPHFKDQLFV´SSQGHGLWLRQ
>@ 7D\ORU³)XQGDPHQWDOVRIVRLOPHFKDQLFV´-RKQ:LOH\DQG6RQV1HZ<RUN
>@ *LRYDQQL)DOFKL'HOLWDOD³&DOFRORGHLULYHVWLPHQWLGHOOHJDOOHULH &DOFXOGHVUHYrWHPHQWVGHWXQQHOV ´9LWDOL
*KLDQGD*HQRYD
>@ 30H\HUV³5HYLHZRIDFDOFXODWLRQPHWKRGIRUHDUWKSUHVVXUHRQSLSHOLQHVLQVWDOOHGE\GLUHFWLRQDOGULOOLQJ´
5HSRUW&2'HOIW*HRWHFKQLFV0DUFK
>@ 30H\HUV5$-GH.RFN³$FDOFXODWLRQPHWKRGIRUHDUWKSUHVVXUHRQGLUHFWLRQDOO\GULOOHGSLSHOLQHV´
3LSHOLQHWHFKQRORJ\FRQIHUHQFH2VWHQG

‹%6,
3DJH
(1

$QQH[- LQIRUPDWLYH

$OORZDEOHSXOVDWLRQDQGYLEUDWLRQOHYHOV

- ,QWURGXFWLRQ

3LSHOLQHGDPDJHLVRIWHQGXHWRF\FOLFVWUHVVHVFDXVHGE\JDVSUHVVXUHSXOVDWLRQVDQGYLEUDWLRQV'XULQJWKH
GHVLJQSKDVHWKHSXOVDWLRQDQGYLEUDWLRQVRXUFHVVKRXOGEHWDNHQLQWRDFFRXQWLQRUGHUWRLQYHVWLJDWHDQGFDOFXODWH
RUSUHGLFWWKHSXOVDWLRQDQGYLEUDWLRQOHYHOV7KHVHLQYHVWLJDWLRQVDQGFDOFXODWLRQVDUHLQJHQHUDOYHU\FRPSOLFDWHG
EXWQRZDGD\VFRPSXWHUSURJUDPVDQGVLPXODWLRQWHFKQLTXHVDUHDYDLODEOHWRVROYHWKLVSUREOHP7KHUHDUHDOVR
VRPHJHQHUDOO\DFFHSWHGUXOHVWKDWFDQKHOSWKHHQJLQHHUWRDYRLGWKHRFFXUUHQFHRIWKHPRVWVHYHUHSXOVDWLRQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

DQGYLEUDWLRQSKHQRPHQD

- 3XOVDWLRQV

- *HQHUDO

3XOVDWLRQVDUHFDXVHGE\WXUEXOHQWIORZSKHQRPHQDFRPSUHVVRUVDQGSUHVVXUHUHGXFWLRQGHYLFHV

$YHU\LPSRUWDQWG\QDPLFIORZSKHQRPHQRQLVWKH³IORZLQGXFHGSXOVDWLRQ´'HVLJQUXOHVIRUSLSHOLQHV\VWHPVWR
DYRLGWKHVHW\SHVRISXOVDWLRQVKRXOGEHGHULYHGIURPOLWHUDWXUH>@>@DQG>@

&RPSUHVVRUV HVSHFLDOO\UHFLSURFDWLQJFRPSUHVVRUV VKRXOGEHGHVLJQHGVXFKWKDWWKHSXOVDWLRQOHYHOVDUHNHSW


EHORZDFHUWDLQOLPLW7RWKLVHQGG\QDPLFVLPXODWLRQVWXGLHVDUHXVXDOO\FDUULHGRXW

- $OORZDEOHSXOVDWLRQOHYHOV

- 6DIHW\

)RUPXODHIRUDOORZDEOHSXOVDWLRQOHYHOVDUHJLYHQLQOLWHUDWXUH>@DQG>@

- *DVIORZPHWHULQJ

)RUPXODHIRURULILFHPHWHUHUURUVGXHWRIORZSXOVDWLRQVDUHJLYHQLQIRUH[DPSOHOLWHUDWXUH>@DQG>@

)RUPXODHIRUWXUELQHPHWHUHUURUVGXHWRIORZSXOVDWLRQVFDQEHGHULYHGIURPOLWHUDWXUH>@>@DQG>@

- 3LSHYLEUDWLRQV

- *HQHUDO

6HYHUHSUREOHPVDULVHZKHQWKHPHFKDQLFDO³HLJHQ´IUHTXHQF\RIDSLSHV\VWHPLVHTXDORUYHU\FORVHWRWKH
H[FLWDWLRQIUHTXHQF\FDXVHGIRUH[DPSOHE\UHFLSURFDWLQJFRPSUHVVRUVDQGIORZLQGXFHGSXOVDWLRQV7KH³VHOI
VXVWDLQHG´IUHTXHQFLHVRIVLPSOHSLSHV\VWHPVZLWKVLPSOHVXSSRUWVVKRXOGEHFDOFXODWHGIURPVWDQGDUGIRUPXODH
OLWHUDWXUH>@ )RUPRUHFRPSOH[V\VWHPVFRPSXWHUSURJUDPVXVXDOO\EDVHGRQILQLWHHOHPHQWPHWKRGVFDQEH
XVHGWRGHWHUPLQHWKH³VHOIVXVWDLQHG´IUHTXHQFLHVDQGWKHYLEUDWLRQOHYHOV

- &ULWHULDIRUYLEUDWLRQOHYHOV

9LEUDWLRQFULWHULDGHULYHGIURPILHOGPHDVXUHPHQWVDUHJLYHQLQOLWHUDWXUH>@/LWHUDWXUH>@DQG>@VKRXOGDOVREH
FRQVXOWHG

- ,QGXFHGHIIHFWV

,QWKHFDVHRIEXULHGSLSHOLQHVSRVVLEOHVLGHHIIHFWVDUHOLTXHIDFWLRQRUFRPSDFWLRQRIVDQG\VRLOV

‹%6,
3DJH
(1

- /LWHUDWXUH

>@ -&%UXJJHPDQ$+LUVFKEHUJ0(+YDQ'RQJHQ$3-:LMQDQGV-*RUWHU³6HOIVXVWDLQHGDHUR
DFRXVWLFSXOVDWLRQVLQJDVWUDQVSRUWV\VWHPVH[SHULPHQWDOVWXG\RIWKHLQIOXHQFHRIFORVHGVLGHEUDQFKHV´
-RXUQDORI6RXQGDQG9LEUDWLRQ  SS
>@ -*RUWHU³)ORZLQGXFHGSXOVDWLRQVLQJDVWUDQVSRUWV\VWHPV´,QWHUQDWLRQDO*DV5HVHDUFK&RQIHUHQFH
7RN\R-DSDQ1RYHPEHU
>@ -&%UXJJHPDQ³)ORZLQGXFHGSXOVDWLRQVLQSLSHV\VWHPV´7KHVLV(LQGKRYHQ8QLYHUVLW\1HWKHUODQGV
-XQH
>@ ::YRQ1LPLW]³5HOLDELOLW\DQGSHUIRUPDQFHDVVXUDQFHLQWKHGHVLJQRIUHFLSURFDWLQJFRPSUHVVRUDQG
SXPSLQVWDOODWLRQV´3URFHHGLQJVRIWKH3XUGXH&RPSUHVVRU7HFKQRORJ\&RQIHUHQFH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

>@ -$:DFKHODQG::YRQ1LPLW]³(QVXULQJWKHUHOLDELOLW\RIVXEVHDJDVFRPSUHVVLRQV\VWHPV´-RXUQDORI
3HWUROHXP7HFKQRORJ\1RYHPEHU
>@ -&:DFKHODQG&/%DWHV³7HFKQLTXHVIRUFRQWUROOLQJSLSLQJYLEUDWLRQVDQGIDLOXUHV´$60(SXEOLFDWLRQ
3HW
>@ -3GHQ+DUWRJ³0HFKDQLFDOYLEUDWLRQV´0F*UDZ+LOO%RRN&RPSDQ\
>@ ³5HFLSURFDWLQJFRPSUHVVRUVIRUJHQHUDOUHILQHU\VHUYLFHV´$3,6WDQGDUGWKLUGHGLWLRQ)HEUXDU\
>@ &56SDUNV³$VWXG\RISXOVDWLRQHIIHFWVRQRULILFHPHWHULQJRIFRPSUHVVLEOHIORZ´3URFHHGLQJVRI$60(
)ORZ0HDVXUHPHQW6\PSRVLXP6HSWHPEHU
>@ 93+HDG³$SUDFWLFDOSXOVDWLRQWKUHVKROGIRUIORZPHWHUV´7UDQVDFWLRQVRI$60(YRO
2FWREHU
>@ -$%RQQHU³3XOVDWLRQHIIHFWVRQWXUELQHPHWHUV´3LSH/LQH,QGXVWU\0DUFK
>@ $+DDOPDQ³3XOVDWLRQHUURUVLQWXUELQHIORZPHWHUV´&RQWURO(QJLQHHULQJ0D\
>@ 5-0FNHH³'HWHFWLRQRISXOVDWLRQHIIHFWVLQWXUELQHPHWHUJDVIORZPHDVXUHPHQWV´,QWHUQDWLRQDO*DV
5HVHDUFK&RQIHUHQFH2UODQGR)ORULGD1RYHPEHU

‹%6,
3DJH
(1

$QQH[. LQIRUPDWLYH

$OORZDEOHYLEUDWLRQOHYHOVIURPFRQVWUXFWLRQZRUNEODVWLQJ

. *HQHUDO

:RUNLQWKHYLFLQLW\FDQKDYHHIIHFWVRQWKHSLSHOLQHGXHWRJURXQGYLEUDWLRQV

7KLVZRUNLQFOXGHV
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± SLOHGULYLQJ
± LQVWDOODWLRQRUH[WUDFWLRQRIVKHHWSLOHZDOOV
± XVHRIH[SORVLYHV
± XVHRIYLEUDWRUVIRUVHLVPLFVXUYH\
± VRLOFRPSDFWLRQE\YLEUDWLRQ VDQG RUVWDPSLQJ FOD\ 
± EODVWLQJ

7KHHIIHFWVFDQEH

± GLUHFWHIIHFWVGXHWRJURXQGYLEUDWLRQ
± LQGXFHGHIIHFWVVXFKDVOLTXHIDFWLRQRUFRPSDFWLRQRIVDQG\VRLOVRUVHWWOHPHQWRIFOD\VRLOV

. 3URFHGXUH

'DWDRQWKHW\SHRIZRUNVKRXOGEHREWDLQHGZKLFKFDQEHXVHGLQWKHDQDO\VLV

*HRWHFKQLFDODVSHFWVVKRXOGEHFRQVLGHUHG

127( ,QWKHFDVHRIORRVHILOOVZLWKKLJKZDWHUFRQWHQWOLTXHIDFWLRQFDQEHLQGXFHG

. 6WUHQJWKFDOFXODWLRQ

7KHLQFUHDVHLQORQJLWXGLQDODQGFLUFXPIHUHQWLDOVWUHVVGXHWRWKHHIIHFWVRIYLEUDWLRQVKRXOGEHDGGHGWRWKH
VWUHVVHVFDOFXODWHGLQDFFRUGDQFHZLWK DWWKHRSHUDWLQJSUHVVXUH 7KHFRQGLWLRQRISLSHOLQHVHFWLRQVKRXOGEH
JLYHQSURSHUFRQVLGHUDWLRQLQGHWHUPLQLQJWKHDOORZDEOHLQFUHDVHLQVWUHVVHV

)RUH[SORVLYHVWKHVWUHVVHVFDQEHFDOFXODWHGLQDFFRUGDQFHZLWKOLWHUDWXUH>@

)RUEODVWLQJLQURFNVHHOLWHUDWXUH>@DQG>@

$VSHFLILFFULWHULRQIRUDSDUWLFXODUVLWHFDQEHGHYHORSHGRQWKHEDVLVRIWHVWV

:KHQFRQGXFWLQJVHLVPLFVXUYH\VXVLQJVKDNHUVORZIUHTXHQFLHVVKRXOGEHDYRLGHG ”+] 

,IDGHWDLOHGDQDO\VLVLVQRWPDGHWKHPLQLPXPGLVWDQFHEHWZHHQVKDNHUVDQGSLSHOLQHLVP,QWKHFDVHRI
IUR]HQVRLORUURFNDPLQLPXPGLVWDQFHRIPFDQEHLQVXIILFLHQWDQGVKRXOGEHGHWHUPLQHGE\DQDO\VLV IRU
H[DPSOHWKHW\SHRIDQDO\VLVUHIHUUHGWRLQ$QQH[) RUE\PHDQVRIVLWHWHVWV VHHIRUH[DPSOHOLWHUDWXUH>@ 

)RUSLOHGULYLQJ)LJXUH.VKRXOGEHXVHG7KHPD[LPXPDOORZDEOHDPSOLWXGHIRUWKHSLSHOLQHVHFWLRQXQGHU
FRQVLGHUDWLRQLVGHULYHGZLWKWKHDLGRI$QQH[-³$OORZDEOHSXOVDWLRQDQGYLEUDWLRQOHYHOV´:KHUHVPDOOHU
DOORZDEOHGLVWDQFHVDUHUHTXLUHGDVLWHVSHFLILFFULWHULRQVKRXOGEHGHYHORSHGZKLFKWDNHVLQWRDFFRXQWWKH
GLIIHUHQWVRLOOD\HUVDQGWKHGLIIHUHQFHLQYLEUDWLRQDPSOLWXGHEHWZHHQWKHVRLOLWVHOIDQGWKHSLSHOLQHVHFWLRQ

‹%6,
3DJH
(1
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)LJXUH.±$OORZDEOHGLVWDQFHIRUSLOHGULYLQJ

. /LWHUDWXUH

>@ ('(VSDU]D36:HVWLQH$%:HQ]HO³3LSHOLQHUHVSRQVHWREXULHGH[SORVLYHGHWRQDWLRQV9RODQG
9RO´$PHULFDQ*DV$VVRFLDWLRQ$UOLQJWRQ 9D 86$$XJXVW
>@ ('(VSDU]D³3LSHOLQHUHVSRQVHWREODVWLQJLQURFN´$*$3URMHFW35$PHULFDQ*DV$VVRFLDWLRQ
$UOLQJWRQ 9$ 86$6HSWHPEHU
>@ '$&ODUN³5HODWLRQVKLSVEHWZHHQSLSHVWUHVVJURXQGSDUWLFOHYHORFLW\DQGVFDOHIDFWRUVLQEODVWLQJ
GRORPLWH´QG&RQIHUHQFHRQ([SORV6RF([SO(QJ/RXLVYLOOH86$
>@ *37VFKHERWDULRII³)RXQGDWLRQVUHWDLQLQJDQGHDUWKVWUXFWXUHV´6HFRQG(GLWLRQ0F*UDZ+LOO.RJDNXVND
FODXVH´6RLOYLEUDWLRQVDQGIRXQGDWLRQGHVLJQ9LEUDWRU\SLOHGULYLQJ´ 

‹%6,
3DJH
(1

$QQH[/ LQIRUPDWLYH

:DOOWKLFNQHVVFDOFXODWLRQIRUWHHVDQGRWKHURSHQLQJV

/ ,QWURGXFWLRQ

7KLVDQQH[SUHVHQWVDPHWKRGIRUFDOFXODWLQJWHHVDQGRWKHURSHQLQJV

2WKHUPHWKRGVPD\EHXVHGSURYLGHGWKHUHLVDVDIHW\IDFWRURIDWOHDVWDJDLQVWVLJQLILFDQWJHQHUDOSODVWLF
VWUDLQ
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

(;$03/(
± ([SHULPHQWDOGHWHUPLQDWLRQRIWKHGHVLJQSUHVVXUHIURPK\GUDXOLFSURRIWHVWUHVXOWV
± )LQLWHHOHPHQWFRPSXWHUPRGHOOLQJWRFDOFXODWHVWUHVVHVDQGVWUDLQV

/ :DOOWKLFNQHVV

7KHIROORZLQJHTXDWLRQVKRXOGEHXVHGWRFDOFXODWHPLQLPXPZDOOWKLFNQHVV7PLQ

'3 ™ '
7PLQ =
]s

ZKHUH

7PLQ LVWKHPLQLPXPFDOFXODWHGZDOOWKLFNQHVVLQPLOOLPHWHU PP 
'3 LVWKHGHVLJQSUHVVXUHLQEDU
' LVWKHRXWVLGHGLDPHWHURIWKHUXQLQPLOOLPHWUHV PP 
LVWKHQRPLQDOGHVLJQVWUHVVLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
] LVWKHVWUHQJWKUHGXFWLRQIDFWRUDFFRUGLQJWRWKHHTXDWLRQ

' $
]= ™
7PLQ  $S + $

ZKHUH

$S LVWKHDUHDRQZKLFKWKHSUHVVXUHDFWVLQVTXDUHPLOOLPHWUHV PP 
$ LVWKHUHLQIRUFHPHQWDUHDDFFRUGLQJWRWKHHTXDWLRQLQVTXDUHPLOOLPHWUHV PP  

s s
$ = $R + $ + N  $
s s

ZKHUH

$R LVWKHFURVVVHFWLRQDODUHDRIWKHPDWHULDOZLWKDGHVLJQVWUHVVDWOHDVWHTXDOWRWKDWRIWKHUXQ
ZDOOLQVTXDUHPLOOLPHWUHV PP 
$ LVWKHFURVVVHFWLRQDODUHDRIWKHPDWHULDOZLWKDGHVLJQVWUHVV OHVVWKDQWKHGHVLJQVWUHVV
RIWKHUXQZDOOLQVTXDUHPLOOLPHWUHV PP 
$ LVWKHFURVVVHFWLRQDODUHDRIDGGLWLRQDOUHLQIRUFLQJPDWHULDOZLWKDUHLQIRUFHPHQWHIILFLHQF\
IDFWRUNDQGDGHVLJQVWUHVV  PP 

(;$03/( )RUIDFWRUNVHH66FKZDLJHUHU³5RKUOHLWXQJHQ7KHRULHXQG3UD[LV´6SULQJHU9HUODJ
SDJH

‹%6,
3DJH
(1

/ 6WUHVVOLPLWV

7KHVWUHVVOLPLWVVKRXOGEHDVIROORZV

±  DQG VKRXOGQRWH[FHHG5WIRUWKHPDWHULDOXQGHUFRQVLGHUDWLRQ UXQZDOOEUDQFKZDOO


UHLQIRUFHPHQW ZKHUH5WLVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKLQQHZWRQVSHUVTXDUHPLOOLPHWUH
1PP
±  VKRXOGEHVPDOOHUWKDQRUHTXDOWR7KHDUHDV$SDQG$DUHVKRZQLQ)LJXUH/$FDQEHFDOFXODWHG
ZLWKLQWKHERXQGDU\OLQHVLQGLFDWHGLQWKLVILJXUH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

127( )RULUUHJXODUVKDSHVWKHDUHDVFDQEHGHWHUPLQHGE\PHDVXUHPHQW IRUH[DPSOHSODQLPHWU\ $VWKHILJXUH


VKRZVWKHORFDWLRQRIWKHERXQGDU\OLQHVLVGHWHUPLQHGE\WKHGLDPHWHUDQGZDOOWKLFNQHVVDWWKHERXQGDU\OLQHV

:KHUHZDOOWKLFNQHVVGHFUHDVHVSUHFLVHORFDWLRQRIWKHERXQGDU\OLQHVLQ)LJXUH/LVSRVVLEOHRQO\E\WULDODQG
HUURU)RUWKHVDNHRIVLPSOLFLW\KRZHYHULWZLOODOVRVXIILFHWRGHWHUPLQHWKHERXQGDU\OLQHVRQWKHEDVLVRIWKH
PLQLPXPGLDPHWHUVDQGWKLFNQHVVHVRIWKHZDOODQGEUDQFK

+DQG/PHQWLRQHGLQ)LJXUH/E FDQEHFDOFXODWHGZLWKWKHIROORZLQJIRUPXODV

(
+ =  7 'L  + 7 )
(
/ = 7 'L + 7 )
ZKHUH

+ LVWKHKHLJKWIRUFDOFXODWLRQSXUSRVHVLQPLOOLPHWUHV PP 
/ LVWKHOHQJWKIRUFDOFXODWLRQSXUSRVHVLQPLOOLPHWUHV PP 
7 LVWKHZDOOWKLFNQHVVRIWKHEUDQFKLQPLOOLPHWUHV PP 
'L LVWKHLQWHUQDOGLDPHWHURIWKHEUDQFKLQPLOOLPHWUHV PP 
7 LVWKHZDOOWKLFNQHVVRIWKHUXQSLSHLQPLOOLPHWUHV PP 
'L LVWKHLQWHUQDOGLDPHWHURIWKHUXQSLSHLQPLOOLPHWUHV PP 

/ 5HLQIRUFHPHQW

$OOWKHGLPHQVLRQVXVHGIRUZDOOVDQGUHLQIRUFHPHQWVDUH³IRUPXODVL]HV´LHGLPHQVLRQVLQDFFRUGDQFHZLWK
GUDZLQJVRUGLPHQVLRQWDEOHVOHVVDQ\IDEULFDWLRQDOORZDQFHV7KHPDWHULDORIWKHUHLQIRUFHPHQWVKRXOGEH
HIIHFWLYHO\ERQGHGWRWKHZDOO

)LJXUH/D

‹%6,
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

‹%6,
)LJXUH/F
)LJXUH/E
(1
3DJH
3DJH
(1
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

)LJXUH/G

)LJXUH/'HWHUPLQDWLRQRI$DQG$S

‹%6,
3DJH
(1

$QQH[0 LQIRUPDWLYH

:DOOWKLFNQHVVFDOFXODWLRQIRUFDSV GRPHGHQGV

0 ,QWURGXFWLRQ

7KLVDQQH[SUHVHQWVDPHWKRGIRUWKHFDOFXODWLRQRIFDSV GRPHGHQGV 2WKHUPHWKRGVPD\EHXVHGSURYLGHG


WKHUHLVDVDIHW\IDFWRURIDWOHDVWDJDLQVWVLJQLILFDQWJHQHUDOVWUDLQ

(;$03/(
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

± ([SHULPHQWDOGHWHUPLQDWLRQRIWKHGHVLJQSUHVVXUHIURPK\GUDXOLFSURRIWHVWUHVXOWV
± )LQLWHHOHPHQWFRPSXWHUPRGHOOLQJWRFDOFXODWHVWUHVVHVDQGVWUDLQV

)RUWKHGHWHUPLQDWLRQRIWKHZDOOWKLFNQHVV7RIDVHPLHOOLSVRLGDOHQG KHPLVSKHULFDOWRULVSKHULFDODQGHOOLSVRLGDO
HQGVZLWK7VPDOOHUWKDQRUHTXDOWR'DQGULJUHDWHUWKDQRUHTXDOWRUL WKHVKDSHRIDQHOOLSVRLGDOFDSLV
DSSUR[LPDWHGE\DWRULVSKHULFDOHQG7KHIROORZLQJLQVLGHGLDPHWHURINQXFNOHLVWKHUHIRUHXVHGLQWKHZDOO
WKLFNQHVVHTXDWLRQVIRUWKHNQXFNOHDQGGLVK


UL = (' - 7PLQ ) ÎÏ + N - ( - N)  + N Þß
 Ð à

ZKHUH

7PLQ LVWKHPLQLPXPFDOFXODWHGWKLFNQHVVDIWHUGLVKLQJLQPLOOLPHWUHV
' LVWKHRXWVLGHGLDPHWHURIWKHHQGLQPLOOLPHWUHV
UL LVWKHLQVLGHGLDPHWHURIWKHNQXFNOHLQPLOOLPHWUHV


UL = (' - 7PLQ ) ÎÏ + N - ( - N)  + N Þß
N Ð à

ZKHUH

UL LVWKHLQVLGHGLDPHWHURIWKHGLVKHGFHQWUDOSDUWLQPLOOLPHWUHVLQZKLFK VHH)LJXUH0 

(KH - 7PLQ )
N =
' - 7PLQ

ZKHUH

KH LVWKHRXWVLGHKHDGKHLJKWLQPLOOLPHWUHV

)LJXUH0.QXFNOHDQGGLVK

‹%6,
3DJH
(1

0 0LQLPXPZDOOWKLFNQHVV

7KHZDOOWKLFNQHVVDWWKHNQXFNOHDQGWKHGLVKHGFHQWUDOSDUWVKRXOGQRWEHOHVVWKDQPP7KHGLVKHGFHQWUDO
SDUWVKRXOGQRWEHWKLQQHUWKDQWKHUHTXLUHGWKLFNQHVVRIWKHNQXFNOHEXWPD\EHWKLFNHU

0 &DOFXODWLRQRIZDOOWKLFNQHVVLQWKHNQXFNOHUHJLRQIRUSUHVVXUHORDGLQJ

7KHPLQLPXPZDOOWKLFNQHVV7PLQLVFDOFXODWHGLQDFFRUGDQFHZLWKWKHH[SUHVVLRQEHORZ

'3 ™ ' ™ & ™ & 


7PLQ =
&  s
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

LQZKLFK

'3 LVWKHGHVLJQSUHVVXUHLQEDU
LVWKHQRPLQDOGHVLJQVWUHVVLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  
& VHHWKHIROORZLQJ
& VHHWKHIROORZLQJ
& LVWKHORZHURI»&DQG
XVLQJIRUWKHGHVLJQVWUHVV  5W
ZKHUH
5WLVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKLQQHZWRQVSHUVTXDUHPLOOLPHWUH 1PP  

)DFWRUV&DQG&GHSHQGRQWKHZDOOWKLFNQHVV 7LVGHWHUPLQHGE\WULDODQGHUURU 

UL
IRU ˆ ˆ  & =   ( -OJ UL  UL )(-7  UL )
U L

(;$03/(

7 Þ
=  ß
UL
ß& = 
UL ß 
=  ß
U L à
UL
IRU < ˆ & =  - ( + ( -7  UL )OJUL  UL )
U L

(;$03/(

7 Þ
=  ß
UL
ß& = 
UL ß 
= ß
U L à
Ë 7 Û Ë 7 Û
&  =  +  OQ ÌÌ + ÜÜ +  OQ  ÌÌ + ÜÜ
Í U L Ý Í U L Ý

‹%6,
3DJH
(1

0 &DOFXODWLRQRIWKHZDOOWKLFNQHVVLQWKHGLVKHGFHQWUDOSDUWIRUSUHVVXUHORDGLQJ

7KHPLQLPXPZDOOWKLFNQHVV7LVFDOFXODWHGLQDFFRUGDQFHZLWKWKHIROORZLQJH[SUHVVLRQ

'3 ™ UL
7PLQ =
s - '3

XVLQJIRUWKHGHVLJQVWUHVV  5W

0 ([SODQDWLRQVWUHQJWKRIWKHNQXFNOH
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

%HQGLQJDQGSHDNVWUHVVHVRFFXUDWDQGQHDUWKHNQXFNOHRIDKHDGLQDGGLWLRQWRPHPEUDQHVWUHVVHV7KH
IROORZLQJFRQGLWLRQVDSSO\

± WKHPHPEUDQHVWUHVVHVVKRXOGEHOLPLWHGWRSUHYHQWRYHUDOOSODVWLFGHIRUPDWLRQ
± LWLVDFFHSWDEOHIRUWKHFRPELQHGPHPEUDQHDQGEHQGLQJVWUHVVHVWRH[FHHGWKH\LHOGVWUHVVRQFHWKLV
FDXVHVQRRYHUDOOGHIRUPDWLRQRIWKHYHVVHODQGE\UHOLHYLQJVWUHVVHVSURGXFHVDFRPSHQVDWLQJUHVLGXDO
VWUHVVV\VWHPWKHFULWHULRQLVQRWWKHUHIRUHWKHDEVROXWHPDJQLWXGHRIWKHVWUHVVEXWWKHVWUHVVUDQJH,IWKLV
LVUHVWULFWHGWRWZLFHWKH\LHOGVWUHVV ORFDO SODVWLFGHIRUPDWLRQZLOOQRWRFFXUPRUHWKDQRQFH

7KHVWUHVVUDQJH HLVGHWHUPLQHGE\

'3 ™ ' ™ & ™ &


sH =
7

+HUHPHPEUDQHDQGEHQGLQJVWUHVVHVKDYHEHHQLQFRUSRUDWHGLQWR&WKHORFDOSHDNVWUHVVKDVEHHQ
LQFRUSRUDWHGLQWR&

$WDORZ&WKHPHPEUDQHVWUHVVSUHGRPLQDWHVDQGWKHILUVWGHVLJQFRQGLWLRQLVWKHUHIRUHGHFLVLYH$WDKLJK&
WKHEHQGLQJVWUHVVSUHGRPLQDWHVDQGWKHVHFRQGFRQGLWLRQLVWKHUHIRUHGHFLVLYH

&RPELQHGWKHGHVLJQVWUHVVILVWDNHQDVIROORZV

s = 5W  & ˆ 5W 

7KHYDOXHVIRU&LQWKHDERYHHTXDWLRQIRUWKHUDQJHLQGLFDWHGDUHEDVHGRQWKHUHVXOWVRIVWUHVVPHDVXUHPHQWV
RQGLVKHGFDSVSXEOLVKHGLQ

:%&DUOVRQ-'0F.HDQ³&\OLQGULFDOSUHVVXUHYHVVHOVVWUHVVV\VWHPVLQSODLQF\OLQGULFDOVKHOOVDQGLQSODLQ
DQGSLHUFHGGUXPKHDGV´3URFHHGLQJVRIWKH,QVWLWXWHRI0HFKDQLFDO(QJLQHHUV  SS

,QWKLVUDQJHWKHNQXFNOHWRGLVKWUDQVLWLRQLVGHFLVLYH

)RU

UL
= (KHPLVSKHUH )
U L

&FDQEHGHULYHGWKHRUHWLFDOO\KHUHWKHWUDQVLWLRQWRWKHDGMRLQLQJ HTXDOO\WKLFN SDUWRIWKHVKHOOLVGHFLVLYH

‹%6,
3DJH
(1

,QWKHLQWHUPHGLDWHDUHD

UL
 < <
U L

QRUHOLDEOHYDOXHVDUHNQRZQLWLVFOHDUWKDWWKHFRXUVHRI&ZLOOVKRZDGLVFRQWLQXLW\ZKHUHWKHWUDQVLWLRQVIURP
NQXFNOHWRVKHOODUHHTXDOO\GHFLVLYH$VDVDIHDSSURDFKLIQRIXUWKHUGDWDDUHNQRZQWKLVGLVFRQWLQXLW\LVSXWDW

UL
= 
UL
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

7KHDSSUR[LPDWLRQRIDVHPLHOOLSWLFDOKHDGE\DGLVKHGKHDGZLWKNQXFNOHLVDOVREDVHGRQVWUHVVPHDVXUHPHQWV
IRUD[LVUDWLR,WFDQDOVREHDVVXPHGIRURWKHUD[LVUDWLRVWKDWWKHDSSUR[LPDWLRQLQWKHUDQJH7'JUHDWHU
WKDQDJUHHVVXIILFLHQWO\ZLWKIXQGDPHQWDOVWUHVVFDOFXODWLRQVEDVHGRQHODVWLFLW\WKHRU\

7KHVWUHVVFRQFHQWUDWLRQIDFWRU&KDVEHHQGHULYHGIURPWKHWKHRU\RIVKDUSO\FXUYHGEDUV

‹%6,
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

blank
BS EN |
|
1594:2000 |
|
|
|
|
|
|
BSI Ð British Standards Institution
|
|
|
|
|
|
| BSI is the independent national body responsible for preparing British Standards. It
|
| presents the UK view on standards in Europe and at the international level. It is
| incorporated by Royal Charter.
|
|
| Revisions
|
|
| British Standards are updated by amendment or revision. Users of British Standards
|
| should make sure that they possess the latest amendments or editions.
Licensed Copy: :FULLNAME, : DATE, Uncontrolled Copy, (c) BSI

|
|
| It is the constant aim of BSI to improve the quality of our products and services. We
|
| would be grateful if anyone finding an inaccuracy or ambiguity while using this
| British Standard would inform the Secretary of the technical committee responsible,
|
| the identity of which can be found on the inside front cover. Tel: 020 8996 9000.
|
| Fax: 020 8996 7400.
|
|
| BSI offers members an individual updating service called PLUS which ensures that
|
| subscribers automatically receive the latest editions of standards.
|
|
| Buying standards
|
| Orders for all BSI, international and foreign standards publications should be
|
| addressed to Customer Services. Tel: 020 8996 9001. Fax: 020 8996 7001.
|
|
| In response to orders for international standards, it is BSI policy to supply the BSI
|
| implementation of those that have been published as British Standards, unless
|
| otherwise requested.
|
|
| Information on standards
|
| BSI provides a wide range of information on national, European and international
|
| standards through its Library and its Technical Help to Exporters Service. Various
|
| BSI electronic information services are also available which give details on all its
|
| products and services. Contact the Information Centre. Tel: 020 8996 7111.
|
| Fax: 020 8996 7048.
|
|
| Subscribing members of BSI are kept up to date with standards developments and
| receive substantial discounts on the purchase price of standards. For details of
|
| these and other benefits contact Membership Administration. Tel: 020 8996 7002.
|
| Fax: 020 8996 7001.
|
|
| Copyright
|
|
| Copyright subsists in all BSI publications. BSI also holds the copyright, in the UK, of
|
| the publications of the international standardization bodies. Except as permitted
| under the Copyright, Designs and Patents Act 1988 no extract may be reproduced,
|
| stored in a retrieval system or transmitted in any form or by any means ± electronic,
|
| photocopying, recording or otherwise ± without prior written permission from BSI.
|
|
| This does not preclude the free use, in the course of implementing the standard, of
|
| necessary details such as symbols, and size, type or grade designations. If these
|
| details are to be used for any other purpose than implementation then the prior
| written permission of BSI must be obtained.
|
|
| If permission is granted, the terms may include royalty payments or a licensing
|
| agreement. Details and advice can be obtained from the Copyright Manager.
|
| Tel: 020 8996 7070.
|
|
|
|
|
|
|
|
|
BSI |
|
389 Chiswick High Road |
|
London |
|
W4 4AL |
|
|
|
|
|
|

You might also like