Professional Documents
Culture Documents
DB - Seismic Design Codef or Dubai
DB - Seismic Design Codef or Dubai
6(,60,&$1$/<6,6$1''(6,*15(48,5(0(176$
)25%8,/',1*6$
$
*(1(5$/5(48,5(0(176$ $
6&23(127$7,2165()(5(1&(67$1'$5'6$ $
6FRSH$ $
1RWDWLRQV$ $
5HIHUHQFHVWDQGDUGV$ $
6(,60,&*5281'027,21$ $
(DUWKTXDNHOHYHOV$ $
5HSUHVHQWDWLRQRIJURXQGPRWLRQ(ODVWLF5HVSRQVH6SHFWUXP$ $
5HSUHVHQWDWLRQRIJURXQGPRWLRQLQWLPHGRPDLQ$ $
6(,60,&3(5)250$1&(2%-(&7,9(6$ $
&ODVVLILFDWLRQRIEXLOGLQJV$ $
3HUIRUPDQFHOHYHOVDQGUDQJHV$ $
0LQLPXPSHUIRUPDQFHREMHFWLYHIRUORZWRPHGLXPULVHEXLOGLQJV$ $
0XOWLSOHPLQLPXPSHUIRUPDQFHREMHFWLYHVIRUWDOOEXLOGLQJV$ $
*(1(5$/*8,'(/,1(6)25$55$1*(0(172)%8,/',1*$
6758&785$/6<67(06$ $
6WUXFWXUDOVLPSOLFLW\$ $
8QLIRUPLW\V\PPHWU\DQGUHGXQGDQF\$ $
$GHTXDWHUHVLVWDQFHDQGVWLIIQHVV$ $
'LDSKUDJPDFWLRQ$ $
$GHTXDWHIRXQGDWLRQ$ $
5(*8/$5,7<5(48,5(0(176$ $
'HILQLWLRQRI,UUHJXODU%XLOGLQJV$ $
&RQGLWLRQVIRU,UUHJXODU%XLOGLQJV$ $
35,0$5<$1'6(&21'$5<6(,60,&0(0%(56$ $
3ULPDU\PHPEHUV$ $
6HFRQGDU\PHPEHUV$ $
6(,60,&$1$/<6,65(48,5(0(1762)%8,/',1*6$ $
3$5$0(7(562)'(6,*15(63216(63(&7580$ $
,PSRUWDQFH)DFWRUV$ $
6HLVPLF/RDG5HGXFWLRQ)DFWRUV$ $
'HVLJQ5HVSRQVH6SHFWUXP$ $
6(,60,&$1$/<6,6$ $
$SSOLFDEOHDQDO\VLVPHWKRGV$ $
6HOHFWLRQRIDQDO\VLVPHWKRGIRUORZWRPHGLXPULVHEXLOGLQJV$ $
'HILQLWLRQRIVHLVPLFPDVV$ $
&RQVLGHUDWLRQRIYHUWLFDOFRPSRQHQWRIHDUWKTXDNH$ $
(48,9$/(176(,60,&/2$'0(7+2'$ $
'LVSODFHPHQWFRPSRQHQWVDQGDSSOLFDWLRQSRLQWVRIVHLVPLFORDGV$ $
%DVHVKHDU$ $
6WRUH\VHLVPLFORDGV$ $
3UHGRPLQDQWSHULRG$ $
'LUHFWLRQDOFRPELQDWLRQ$ $
08/7,02'(5(63216(63(&7580$1$/<6,60(7+2'$ $
'\QDPLFGHJUHHVRIIUHHGRP$ $
0RGDOVHLVPLFORDGV$ $
1XPEHURIYLEUDWLRQPRGHV$ $
$ L
$
0RGDOFRPELQDWLRQ$ $
6FDOLQJRIUHVSRQVHTXDQWLWLHV$ $
'LUHFWLRQDOFRPELQDWLRQ$ $
5(63216(+,6725<$1$/<6,60(7+2'$ $
/LQHDU5HVSRQVH+LVWRU\$QDO\VLV$ $
1RQOLQHDU5HVSRQVH+LVWRU\$QDO\VLV$ $
6$)(7<9(5,),&$7,21$ $
6WUHQJWKYHULILFDWLRQ$ $
/RDGFRPELQDWLRQVIRUVHLVPLFGHVLJQ$ $
6HFRQGRUGHUHIIHFWV$ $
'$0$*(/,0,7$7,21$ $
/LPLWDWLRQRIVWRU\GULIWV$ $
6HLVPLFMRLQWV$ $
$1$/<6,65(48,5(0(176)251216758&785$/6<67(06$ $
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7($
%8,/',1*6$ $
6&23($1''(6,*1&21&(376$ $
6FRSH$ $
'HVLJQ&RQFHSWV$ $
6WUXFWXUDOW\SHVDQG%HKDYLRXU)DFWRUV$ $
'HVLJQDFWLRQV$ $
&DSDFLW\'HVLJQ5XOHV$ $
0DWHULDOUHTXLUHPHQWV$ $
/RFDOGXFWLOLW\UHTXLUHPHQWV$ $
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7($
%($06$ $
*HRPHWULFDOUHTXLUHPHQWV$ $
'HVLJQVKHDUIRUFHVRIEHDPV$ $
6HLVPLFGHWDLOLQJRIEHDPV$ $
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7($
&2/8016$ $
*HRPHWULFDOUHTXLUHPHQWV$ $
'HVLJQVKHDUIRUFHVRIFROXPQV$ $
6HLVPLFGHWDLOLQJRIFROXPQV$ $
6HLVPLFGHWDLOLQJRIEHDPFROXPQMRLQWV$ $
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7($
6758&785$/:$//6$ $
*HRPHWULFDOUHTXLUHPHQWV$ $
'HVLJQEHQGLQJPRPHQWVDQGVKHDUIRUFHVRIVWUXFWXUDOZDOOV$ $
6HLVPLFGHWDLOLQJRIVWUXFWXUDOZDOOV$ $
5(48,5(0(176)25$1&+25$*($1'63/,&,1*2)5(%$56$ $
*HQHUDO$ $
$QFKRUDJHRIUHEDUV$ $
6SOLFLQJRIUHEDUV$ $
'(6,*1$1''(7$,/,1*2)6(&21'$5<6(,60,&(/(0(176$
6(,60,&'(6,*15(48,5(0(176)25)281'$7,216$ $
*HQHUDO$ $
7LHEHDPVDQGIRXQGDWLRQEHDPV$ $
&RQQHFWLRQRIYHUWLFDOHOHPHQWVZLWKIRXQGDWLRQEHDPVDQGZDOOV$ $
&DVWLQSODFHFRQFUHWHSLOHVDQGSLOHFDSV$ $
$ LL
$
6(,60,&'(6,*15(48,5(0(176)256758&785$/67((/$
%8,/',1*6$ $
6&23($1''(6,*1&21&(376$ $
6FRSH$ $
'HVLJQ&RQFHSWV$ $
6WUXFWXUDOW\SHVDQG%HKDYLRXU)DFWRUV$ $
0DWHULDOUHTXLUHPHQWV$ $
*(1(5$/'(6,*1&5,7(5,$$1''(7$,/,1*58/(6$ $
'HVLJQUXOHVIRUGXFWLOHHOHPHQWVLQFRPSUHVVLRQRUEHQGLQJ$ $
'HVLJQUXOHVIRUGXFWLOHHOHPHQWVLQWHQVLRQ$ $
'HVLJQUXOHVIRUFRQQHFWLRQV$ $
'(6,*1$1''(7$,/,1*58/(6)25020(175(6,67,1*)5$0(6$$
'HVLJQFULWHULD$ $
%HDPV$ $
&ROXPQV$ $
%HDPFROXPQFRQQHFWLRQV$ $
'(6,*1$1''(7$,/,1*58/(6)25)5$0(6:,7+&21&(175,&$
%5$&,1*6$ $
'HVLJQFULWHULD$ $
$QDO\VLV$ $
'LDJRQDOPHPEHUV$ $
%HDPVDQGFROXPQV$ $
'(6,*1$1''(7$,/,1*58/(6)25)5$0(6:,7+(&&(175,&$
%5$&,1*6$ $
'HVLJQFULWHULD$ $
6HLVPLFOLQNV$ $
0HPEHUVQRWFRQWDLQLQJVHLVPLFOLQNV$ $
&RQQHFWLRQVRIVHLVPLFOLQNV$ $
'(6,*158/(6)2567((/%8,/',1*6:,7+&21&5(7(&25(625$
&21&5(7(:$//6$ $
'(6,*158/(6)25,19(57('3(1'8/806758&785(6$ $
6(,60,&'(6,*15(48,5(0(176)2567((/±&21&5(7($
&20326,7(%8,/',1*6$ $
6&23($1''(6,*1&21&(376$ $
6FRSH$ $
'HVLJQFRQFHSWV$ $
6WUXFWXUDOW\SHVDQG%HKDYLRXU)DFWRUV$ $
0DWHULDOUHTXLUHPHQWV$ $
6758&785$/$1$/<6,6$ $
6FRSH$ $
6WLIIQHVVRIVHFWLRQV$ $
'(6,*1&5,7(5,$$1''(7$,/,1*58/(6)25',66,3$7,9($
6758&785$/%(+$9,285&2002172$//6758&785$/7<3(6$$
'HVLJQFULWHULDIRUGLVVLSDWLYHVWUXFWXUHV$ $
3ODVWLFUHVLVWDQFHRIGLVVLSDWLYH]RQHV$ $
'HWDLOLQJUXOHVIRUFRPSRVLWHFRQQHFWLRQVLQGLVVLSDWLYH]RQHV$ $
58/(6)250(0%(56$ $
*HQHUDO$ $
6WHHOEHDPVFRPSRVLWHZLWKVODE$ $
(IIHFWLYHZLGWKRIVODE$ $
$ LLL
$
)XOO\HQFDVHGFRPSRVLWHFROXPQV$ $
3DUWLDOO\HQFDVHGPHPEHUV$ $
)LOOHGFRPSRVLWHFROXPQV$ $
'(6,*1$1''(7$,/,1*58/(6)25020(17)5$0(6$ $
6SHFLILFFULWHULD$ $
$QDO\VLV$ $
5XOHVIRUEHDPVDQGFROXPQV$ $
%HDPWRFROXPQFRQQHFWLRQV$ $
&RQGLWLRQIRUGLVUHJDUGLQJWKHFRPSRVLWHFKDUDFWHURIEHDPVZLWKVODE$ $
'(6,*1$1''(7$,/,1*58/(6)25&20326,7($
&21&(175,&$//<%5$&(')5$0(6$ $
6SHFLILFFULWHULD$ $
$QDO\VLV$ $
'LDJRQDOPHPEHUV$ $
%HDPVDQGFROXPQV$ $
'(6,*1$1''(7$,/,1*58/(6)25&20326,7($
(&&(175,&$//<%5$&(')5$0(6$ $
6SHFLILFFULWHULD$ $
$QDO\VLV$ $
6HLVPLFOLQNV$ $
0HPEHUVQRWFRQWDLQLQJVHLVPLFOLQNV$ $
'(6,*1$1''(7$,/,1*58/(6)256758&785$/6<67(06$
0$'(2)5(,1)25&('&21&5(7(6758&785$/:$//6$
&20326,7(:,7+6758&785$/67((/(/(0(176$ $
6SHFLILFFULWHULD$ $
$QDO\VLV$ $
'HWDLOLQJUXOHVIRUFRPSRVLWHZDOOV$ $
'HWDLOLQJUXOHVIRUFRXSOLQJEHDPV$ $
'(6,*1$1''(7$,/,1*58/(6)25&20326,7($
6758&785$/:$//6$ $
6SHFLILFFULWHULD$ $
$QDO\VLV$ $
'HWDLOLQJUXOHV$ $
3(5)250$1&(%$6('6(,60,&'(6,*15(48,5(0(176)25$
7$//%8,/',1*6$ $
6(,60,&$1$/<6,6352&('85(6)257$//%8,/',1*6$ $
5(48,5(0(176)25$1$/<6,602'(/,1*$ $
3(5)250$1&(%$6('6(,60,&'(6,*167$*(62)7$//$
%8,/',1*6$ $
'HVLJQ6WDJH ,±$ 3UHOLPLQDU\'HVLJQ GLPHQVLRQLQJ ZLWK/LQHDU$
$QDO\VLVIRU&RQWUROOHG'DPDJH/LIH6DIHW\3HUIRUPDQFH2EMHFWLYH$
XQGHU ( /HYHO(DUWKTXDNH$ $
'HVLJQ6WDJH ,±% 'HVLJQZLWK1RQOLQHDU$QDO\VLVIRU/LIH6DIHW\$
&RQWUROOHG'DPDJH3HUIRUPDQFH2EMHFWLYHXQGHU ( /HYHO$
(DUWKTXDNH$ $
'HVLJQ6WDJH ,, 'HVLJQ9HULILFDWLRQZLWK/LQHDU$QDO\VLVIRU0LQLPXP$
'DPDJH,PPHGLDWH2FFXSDQF\3HUIRUPDQFH2EMHFWLYHXQGHU ( /HYHO$
(DUWKTXDNH$
$
$ $
$ LY
$
$ Y
$
&+$37(5$
*(1(5$/5(48,5(0(176$
$
6&23(127$7,2165()(5(1&(67$1'$5'6$
$
6FRSH$
$
± 7KLV VWDQGDUG FRYHUV WKH VHLVPLF DQDO\VLV DQG GHVLJQ UHTXLUHPHQWV RI UHLQIRUFHG$
FRQFUHWH$DQG$VWHHO$EXLOGLQJ$VWUXFWXUHV$WR$EH$FRQVWUXFWHG$ZLWKLQ$ERXQGDULHV$RI$(PLUDWH$RI$
'XEDL$
$
± 7KLV$VWDQGDUG LV$
DSSOLFDEOH WR ORZ WR$
PHGLXP$ ULVH EXLOGLQJV$
DV$
ZHOO$ DV WR WDOO$
EXLOGLQJVDVGHILQHGLQ$
D $OOSDUWVRIWKLVVWDQGDUGH[FOXGLQJ&KDSWHUVDQGDUHDSSOLFDEOHWRORZWRPHGLXP$
ULVHEXLOGLQJV$
E 6SHFLDOVHLVPLFDQDO\VLVDQGGHVLJQUHTXLUHPHQWVDSSOLFDEOHWRWDOOEXLOGLQJVDUHJLYHQLQ$
&KDSWHUVDQG3DUWVRIVHFWLRQVDQGRI&KDSWHUDVZHOODVSDUWVRI&KDSWHU$
WKDWDUHUHIHUUHGWRLQ&KDSWHUDUHDOVRDSSOLFDEOHWRWDOOEXLOGLQJV$
$
±&LYLOHQJLQHHULQJVWUXFWXUHVRWKHUWKDQEXLOGLQJVDUHRXWVLGHWKHVFRSHRIWKLVFRGH$
$
±%DVHLVRODWHGEXLOGLQJVDVZHOODVEXLOGLQJVHTXLSSHGZLWKDFWLYHRUSDVVLYHFRQWURO$
V\VWHPVDQGGHYLFHVDUHRXWVLGHWKHVFRSHRIWKLVFRGH$
$
1RWDWLRQV$
$
$$ *URVVDUHDRIVHLVPLFOLQN$
$F$ 7RWDOHIIHFWLYHDUHDRIVWUXFWXUDOZDOOVLQWKHILUVWVWRUH\IRUHPSLULFDOFDOFXODWLRQRI$
SUHGRPLQDQWSHULRGLQWKHHDUWTXDNHGLUHFWLRQ>P@$
$H$ 0D[LPXPDFFHOHUDWLRQDFWLQJRQQRQVWUXFWXUDOHOHPHQWRUFRPSRQHQW$
$M$ (IIHFWLYHDUHDRIWKHM¶WKVWUXFWXUDOZDOOVLQWKHILUVWVWRUH\IRUHPSLULFDOFDOFXODWLRQ$
RISUHGRPLQDQWSHULRGLQWKHHDUWTXDNHGLUHFWLRQ>P@$
$SO$ +RUL]RQWDODUHDRIWKHSODWH$
$VW$ $UHDRIRQHOHJRIWKHWUDQVYHUVHUHLQIRUFHPHQWDUHDRIVWLIIHQHU$
%H$ $PSOLILFDWLRQIDFWRUIRUQRQVWUXFWXUDOHOHPHQWRUFRPSRQHQW$
E$ :LGWKRIWKHIODQJH$
EE$ :LGWKRIFRPSRVLWHEHDPRUEHDULQJZLGWKRIWKHFRQFUHWHRIWKHVODERQWKH$
FROXPQ$
EF$ &URVVVHFWLRQDOGLPHQVLRQRIFROXPQ$
EH$ 3DUWLDOHIIHFWLYHZLGWKRIIODQJHRQHDFKVLGHRIWKHVWHHOZHE$
EHII$ (IIHFWLYHIODQJHZLGWKRIEHDPLQWHQVLRQDWWKHIDFHRIDVXSSRUWLQJFROXPQWRWDO$
HIIHFWLYHZLGWKRIFRQFUHWHIODQJH$
EL$ 'LVWDQFHEHWZHHQFRQVHFXWLYHEDUVHQJDJHGE\DFRUQHURIDWLHRUDFURVVWLHLQD$
FROXPQ$
ER$ :LGWKRIDFRQILQHGFRUHLQDFROXPQRULQWKHERXQGDU\HOHPHQWRIDZDOO WR$
FHQWHUOLQHRIKRRSV $
EZ$ :LGWKRIWKHZHERIDEHDP$
EZR$ :HEWKLFNQHVVRIZDOO$
&W$ (PSLULFDOIDFWRUIRUWKHFDOFXODWLRQRISUHGRPLQDQWSHULRGLQWKHHDUWKTXDNH$
$
$
GLUHFWLRQ$
'L$ 7RUVLRQDPSOLILFDWLRQIDFWRUDWL¶WKVWRUH\$
'R$ 'LDPHWHURIFRQILQHGFRUHLQDFLUFXODUFROXPQ$
G$ (IIHFWLYHGHSWKRIVHFWLRQ$
GE/$ /RQJLWXGLQDOEDUGLDPHWHU$
GEZ$ 'LDPHWHURIKRRS$
GIL$ )LFWLWLRXVGLVSODFHPHQWVDWL¶WKVWRUH\XVHGLQ5D\OHLJKTXRWLHQW$
GML$ 5HGXFHGVWRUH\GLVSODFHPHQWRIWKHM¶WKYHUWLFDOHOHPHQWDWL¶WKVWRUH\$
(D$ 0RGXOXVRI(ODVWLFLW\RIVWHHO$
(FP$ 0HDQYDOXHRI0RGXOXVRI(ODVWLFLW\RIFRQFUHWHLQDFFRUGDQFHZLWK(1$
$
(G$ 'HVLJQYDOXHRIDQDFWLRQHIIHFW$
(GL$ 'HVLJQYDOXHRIWKHDFWLRQHIIHFWRQWKH]RQHRUHOHPHQWLLQWKHVHLVPLFGHVLJQ$
VLWXDWLRQ$
(($ $FWLRQHIIHFWGXHWRVHLVPLFORDG$
()G$ 'HVLJQYDOXHRIDQDFWLRQHIIHFWRQWKHIRXQGDWLRQ$
(*$ $FWLRQHIIHFWGXHWRGHDGORDG$
()($ $FWLRQHIIHFWIURPWKHDQDO\VLVRIWKHGHVLJQVHLVPLFDFWLRQ$
()*$ $FWLRQHIIHFWGXHWRWKHQRQVHLVPLFDFWLRQVLQFOXGHGLQWKHFRPELQDWLRQRI$
DFWLRQVIRUWKHVHLVPLFGHVLJQVLWXDWLRQ$
(4$ $FWLRQHIIHFWGXHWROLYHORDG$
H$ /HQJWKRIVHLVPLFOLQN$
)IL$ )LFWLWLRXVIRUFHVDWL¶WKVWRUH\XVHGLQ5D\OHLJKTXRWLHQW$
)L$ (TXLYDOHQWVHLVPLFORDGDFWLQJDWL¶WKVWRUH\$
)[LQ$ 0RGDOVHLVPLFORDGLQWKHQ¶WKPRGHDFWLQJDWL¶WKVWRUH\LQ[GLUHFWLRQ$
)\LQ$ 0RGDOVHLVPLFORDGLQWKHQ¶WKPRGHDFWLQJDWL¶WKVWRUH\LQ\GLUHFWLRQ$
)TLQ$ 0RGDOVHLVPLFWRUTXHLQWKHQ¶WKPRGHDFWLQJDWL¶WKVWRUH\DURXQGWKHYHUWLFDOD[LV$
SDVVLQJWKURXJKPDVVFHQWUH$
FG$ 'HVLJQYDOXHRIFRQFUHWHFRPSUHVVLYHVWUHQJWK$
FH$ ([RSHFWHGYDOXHRIFRQFUHWHFRPSUHVVLYHVWUHQJWK$
FN$ &KDUDFWHULVWLFYDOXHRIFRQFUHWHFRPSUHVVLYHVWUHQJWK$
FWP$ 0HDQYDOXHRIFRQFUHWHWHQVLOHVWUHQJWK$
\$ 1RPLQDOYDOXHRIVWHHO\LHOGVWUHQJWK$
\G$ 'HVLJQYDOXHRIVWHHO\LHOGVWUHQJWK$
\H$ ([SHFWHGYDOXHRIVWHHO\LHOGVWUHQJWK$
\GI$ 'HVLJQ\LHOGVWUHQJWKRIVWHHOLQWKHIODQJH$
\GY$ 'HVLJQYDOXHRI\LHOGVWUHQJWKRIWKHYHUWLFDOZHEUHLQIRUFHPHQW$
\GZ$ 'HVLJQVWUHQJWKRIZHEUHLQIRUFHPHQW$
\N$ &KDUDFWHULVWLFYDOXHRIVWHHO\LHOGVWUHQJWK$
\OG$ 'HVLJQYDOXHRI\LHOGVWUHQJWKRIORQJLWXGLQDOUHLQIRUFHPHQW$
\ZG$ 'HVLJQYDOXHRI\LHOGVWUHQJWKRIWUDQVYHUVHUHLQIRUFHPHQW$
H$ (TXLYDOHQWVHLVPLFORDGDFWLQJDWWKHPDVVFHQWUHRIQRQVWUXFWXUDOHOHPHQW$
*L$ 7RWDOGHDGORDGDWL¶WKVWRUH\RIEXLOGLQJ$
J$ $FFHOHUDWLRQRIJUDYLW\ PV $
+L$ 7RWDOKHLJKWRIEXLOGLQJPHDVXUHGIURPWKHWRSIRXQGDWLRQOHYHO$
,QEXLOGLQJVZLWKULJLGSHULSKHUDOEDVHPHQWZDOOVWRWDOKHLJKWRIEXLOGLQJ$
PHDVXUHGIURPWKHWRSRIWKHJURXQGIORRUOHYHO >P@$
+1$ 7RWDOKHLJKWRIEXLOGLQJPHDVXUHGIURPWKHWRSIRXQGDWLRQOHYHO$
,QEXLOGLQJVZLWKULJLGSHULSKHUDOEDVHPHQWZDOOVWRWDOKHLJKWRIEXLOGLQJ$
PHDVXUHGIURPWKHWRSRIWKHJURXQGIORRUOHYHO >P@$
$
$
+Z$ 7RWDOZDOOKHLJKWPHDVXUHGIURPWRSIRXQGDWLRQOHYHORUJURXQGIORRUOHYHO$
K$ &URVVVHFWLRQDOGHSWK$
KE$ 'HSWKRIFRPSRVLWHEHDP$
KF$ &URVVVHFWLRQDOGHSWKRIDFROXPQLQDJLYHQGLUHFWLRQ$
KI$ )ODQJHGHSWK$
KL$ +HLJKWRIL¶WKVWRUH\RIEXLOGLQJ>P@$
KR$ 'HSWKRIFRQILQHGFRUHLQDFROXPQ WRFHQWHUOLQHRIKRRSV $
KZ$ 'HSWKRIEHDP$
,$ %XLOGLQJ,PSRUWDQFH)DFWRU$
,D$ 6HFRQGPRPHQWRIDUHDRIWKHVWHHOVHFWLRQSDUWRIDFRPSRVLWHVHFWLRQZLWK$
UHVSHFWWRWKHFHQWURLGRIWKHFRPSRVLWHVHFWLRQ$
,F$ 6HFRQGPRPHQWRIDUHDRIWKHFRQFUHWHSDUWRIDFRPSRVLWHVHFWLRQZLWKUHVSHFWWR$
WKHFHQWURLGRIWKHFRPSRVLWHVHFWLRQ,HTHTXLYDOHQWVHFRQGPRPHQWRIDUHDRIWKH$
FRPSRVLWHVHFWLRQ$
,H$ (OHPHQW QRQVWUXFWXUDO ,PSRUWDQFH)DFWRU$
,V$ 6HFRQGPRPHQWRIDUHDRIWKHUHEDUVLQDFRPSRVLWHVHFWLRQZLWKUHVSHFWWRWKH$
FHQWURLGRIWKHFRPSRVLWHVHFWLRQ$
NH$ (IIHFWLYHVWLIIQHVVFRHIILFLHQWRIWKHQRQVWUXFWXUDOHOHPHQWRUFRPSRQHQW$
NU$ 5LEVKDSHHIILFLHQF\IDFWRURISURILOHGVWHHOVKHHWLQJ$
NW$ 5HGXFWLRQIDFWRURIGHVLJQVKHDUUHVLVWDQFHRIFRQQHFWRUVLQDFFRUGDQFHZLWK(1$
$
/$ %HDPVSDQ$
OF$ &ROXPQKHLJKW$
OFO$ &OHDUOHQJWKRIDEHDPRUDFROXPQ$
OFU$ /HQJWKRIFULWLFDOUHJLRQ$
OZ$ /HQJWKRIZDOOFURVVVHFWLRQ$
OZM$ 3ODQOHQJWKRIM¶WKVWUXFWXUDOZDOORUDSLHFHRIFRXSOHGZDOODWWKHILUVWVWRU\$
0(G$ 'HVLJQEHQGLQJPRPHQWREWDLQHGIURPDQDO\VLVIRUWKHVHLVPLFGHVLJQVLWXDWLRQ$
0(G($ %HQGLQJPRPHQWGXHWRGHVLJQVHLVPLFDFWLRQ$
0(G*$ %HQGLQJPRPHQWGXHWRQRQVHLVPLFDFWLRQVLQVHLVPLFGHVLJQVLWXDWLRQ$
0(G: 'HVLJQEHQGLQJPRPHQWREWDLQHGIURPDQDO\VLVDWWKHEDVHRIWKHZDOOIRUWKH$
VHLVPLFGHVLJQVLWXDWLRQ$
0L$ L¶WKVWRUH\PDVVRIEXLOGLQJ 0L :LJ $
0LG$ (QGPRPHQWRIDEHDPRUFROXPQIRUFDOFXODWLQJFDSDFLW\GHVLJQVKHDU$
01$ 1RPLQDOSODVWLFPRPHQWRI5&VHFWLRQ$
0 Q$$ 0RGDOPDVVRIWKHQ¶WKQDWXUDOYLEUDWLRQPRGH$
0SO5G 'HVLJQYDOXHRISODVWLFPRPHQWUHVLVWDQFH$
0SO5G$ 'HVLJQYDOXHRISODVWLFPRPHQWUHVLVWDQFHDWHQG$RIDPHPEHU$
0SO5G% 'HVLJQYDOXHRISODVWLFPRPHQWUHVLVWDQFHDWHQG%RIDPHPEHU$
0SO5GF 'HVLJQYDOXHRISODVWLFPRPHQWUHVLVWDQFHRIFROXPQWDNHQDVORZHUERXQGDQG$
FRPSXWHGWDNLQJLQWRDFFRXQWWKHFRQFUHWHFRPSRQHQWRIWKHVHFWLRQDQGRQO\WKH$
VWHHOFRPSRQHQWVRIWKHVHFWLRQFODVVLILHGDVGXFWLOH$
05EL$ 'HVLJQPRPHQWUHVLVWDQFHRIDEHDPDWHQGL$
05FL$ 'HVLJQPRPHQWUHVLVWDQFHRIDFROXPQDWHQGL$
05G$ 'HVLJQEHQGLQJPRPHQWUHVLVWDQFH$
05G: 'HVLJQEHQGLQJPRPHQWUHVLVWDQFHDWWKHEDVHRIWKHZDOO$
0[Q$ (IIHFWLYHSDUWLFLSDWLQJPDVVRIWKHQ¶WKQDWXUDOYLEUDWLRQPRGHRIEXLOGLQJLQ$
WKH[HDUWKTXDNHGLUHFWLRQFRQVLGHUHG$
0\Q$ (IIHFWLYHSDUWLFLSDWLQJPDVVRIWKHQ¶WKQDWXUDOYLEUDWLRQPRGHRIEXLOGLQJLQ$
$
$
WKH\HDUWKTXDNHGLUHFWLRQFRQVLGHUHG$
0W$ 7RWDOPDVVRIEXLOGLQJ 0W :WJ $
085GE 8SSHUERXQGSODVWLFUHVLVWDQFHRIEHDPFRPSXWHGWDNLQJLQWRDFFRXQWWKHFRQFUHWH$
FRPSRQHQWRIWKHVHFWLRQDQGDOOWKHVWHHOFRPSRQHQWVLQWKHVHFWLRQLQFOXGLQJ$
WKRVHQRWFODVVLILHGDVGXFWLOH$
0<$ %HQGLQJPRPHQWFRUUHVSRQGLQJWRWKHVWDWHRIILUVW\LHOGLQ5&VHFWLRQ$
PH$ 1RQVWUXFWXUDOHOHPHQWPDVV$
1$ 7RWDOQXPEHURIVWRULHVRIEXLOGLQJIURPWKHIRXQGDWLRQOHYHO$
,QEXLOGLQJVZLWKULJLGSHULSKHUDOEDVHPHQWZDOOVWRWDOQXPEHURIVWRULHVIURPWKH$
JURXQGIORRUOHYHO $
1(G$ 'HVLJQD[LDOIRUFHREWDLQHGIURPDQDO\VLVIRUWKHVHLVPLFGHVLJQVLWXDWLRQ$
1(G($ $[LDOIRUFHGXHWRGHVLJQVHLVPLFDFWLRQ$
1(G*$ $[LDOIRUFHGXHWRQRQVHLVPLFDFWLRQVLQVHLVPLFGHVLJQVLWXDWLRQ$
1SO5G$ 'HVLJQYDOXHRI\LHOGUHVLVWDQFHLQWHQVLRQRIWKHJURVVFURVVVHFWLRQRIDPHPEHULQ$
DFFRUGDQFHZLWK(1$
Q$ 6WHHOWRFRQFUHWHPRGXODUUDWLRIRUVKRUWWHUPDFWLRQV$
Q$ /LYH/RDG0DVV5HGXFWLRQ)DFWRU$
Q$ /LYH/RDG3DUWLFLSDWLRQ)DFWRU$
4&[$ 5HVSRQVHTXDQWLW\REWDLQHGE\PRGDOFRPELQDWLRQLQ5HVSRQVH6SHFWUXP$
0HWKRGIRUDQHDUWKTXDNHLQ[GLUHFWLRQ$
4&\$ 5HVSRQVHTXDQWLW\REWDLQHGE\PRGDOFRPELQDWLRQLQ5HVSRQVH6SHFWUXP$
0HWKRGIRUDQHDUWKTXDNHLQ\GLUHFWLRQ$
4'$ 'HVLJQUHVSRQVHTXDQWLW\GXHWRVHLVPLFDFWLRQ$
4L$ 7RWDOOLYHORDGDWL¶WKVWRUH\RIEXLOGLQJ$
46[$ 6FDOHGUHVSRQVHTXDQWLW\REWDLQHGE\PRGDOFRPELQDWLRQLQ5HVSRQVH6SHFWUXP$
0HWKRGIRUDQHDUWKTXDNHLQ[GLUHFWLRQ$
46\$ 6FDOHGUHVSRQVHTXDQWLW\REWDLQHGE\PRGDOFRPELQDWLRQLQ5HVSRQVH6SHFWUXP$
0HWKRGIRUDQHDUWKTXDNHLQ\GLUHFWLRQ$
4[$ 5HVSRQVHTXDQWLW\REWDLQHGLQ(TXLYDOHQW6HLVPLF/RDG0HWKRGIRUDQHDUWKTXDNH$
LQ[GLUHFWLRQ$
4\$ 5HVSRQVHTXDQWLW\REWDLQHGLQ(TXLYDOHQW6HLVPLF/RDG0HWKRGIRUDQHDUWKTXDNH$
LQ\GLUHFWLRQ$
T$ %HKDYLRXU)DFWRU$
TH$ %HKDYLRXU)DFWRUIRUQRQVWUXFWXUDOHOHPHQWRUFRPSRQHQW$
T5 7 $ 6HLVPLF/RDG5HGXFWLRQ)DFWRU$
5G$ 'HVLJQUHVLVWDQFHRIDQHOHPHQWUHVLVWDQFHRIFRQQHFWLRQLQDFFRUGDQFHZLWK(1$
$
5GL$ 'HVLJQUHVLVWDQFHRIWKH]RQHRUHOHPHQWLI
5I\$ 3ODVWLFUHVLVWDQFHRIFRQQHFWHGGLVVLSDWLYHPHPEHUEDVHGRQGHVLJQ\LHOGVWUHQJWK$
RIPDWHULDODVGHILQHGLQ(1$
6I ( 7 (ODVWLFVSHFWUDODFFHOHUDWLRQ>PV@$
6I 5 7 $ 'HVLJQ UHGXFHG VSHFWUDODFFHOHUDWLRQ>PV@$
66'$ 6KRUWSHULRG VHFRQG HODVWLFVSHFWUDODFFHOHUDWLRQ>PV@$
6'$ VHFRQGHODVWLFVSHFWUDODFFHOHUDWLRQ>PV@$
V$ 6SDFLQJRIWUDQVYHUVHUHLQIRUFHPHQW>PP@$
7$ 1DWXUDOSHULRGRIYLEUDWLRQ>V@$
7/$ 7UDQVLWLRQSHULRGRIUHVSRQVHVSHFWUXPWRORQJSHULRGUDQJH>V@$
7R$ 5HVSRQVHVSHFWUXPVKRUWFRUQHUSHULRG>V@$
76$ 5HVSRQVHVSHFWUXPORQJFRUQHUSHULRG>V@$
7$ 1DWXUDOSHULRGRISUHGRPLQDQWPRGH ILUVWPRGH >V@$
$
$
7Q$ 1DWXUDOSHULRGRIQ¶WKPRGH>V@$
WI$ )ODQJHWKLFNQHVVRIDVHLVPLFOLQN$
WZ$ :HEWKLFNQHVVRIDVHLVPLFOLQN$
9E$ %DVHVKHDULQWKHHDUWKTXDNHGLUHFWLRQFRQVLGHUHG$
9E[$ %DVHVKHDULQ[HDUWKTXDNHGLUHFWLRQ$
9E&[$ %DVHVKHDUREWDLQHGE\PRGDOFRPELQDWLRQLQ[HDUWKTXDNHGLUHFWLRQ$
9E\$ %DVHVKHDULQ[HDUWKTXDNHGLUHFWLRQ$
9E&\$ %DVHVKHDUREWDLQHGE\PRGDOFRPELQDWLRQLQ\HDUWKTXDNHGLUHFWLRQ$
9(G$ 6KHDUIRUFHREWDLQHGIURPDQDO\VLVIRUWKHVHLVPLFGHVLJQVLWXDWLRQ$
9 (G$ 'HVLJQVKHDUIRUFHGHWHUPLQHGLQDFFRUGDQFHZLWKFDSDFLW\GHVLJQUXOH$
9(G($ 6KHDUIRUFHGXHWRGHVLJQVHLVPLFDFWLRQ$
9(G*$ 6KHDUIRUFHGXHWRQRQVHLVPLFDFWLRQVLQVHLVPLFGHVLJQVLWXDWLRQ$
9(G0$ 6KHDUIRUFHGXHWRDSSOLFDWLRQRISODVWLFPRPHQWUHVLVWDQFHVDWWKHWZR$
HQGV$
9L$ L¶WKVWRUH\VHLVPLFVKHDULQWKHHDUWKTXDNHGLUHFWLRQFRQVLGHUHG$
9LF$ 6XPRIVHLVPLFVKHDUIRUFHVRIDOOFROXPQVDWWKHL¶WKVWRUH\LQWKHHDUWKTXDNH$
GLUHFWLRQFRQVLGHUHG$
9LV$ 6XPRIVHLVPLFVKHDUIRUFHVLQWKHHDUWKTXDNHGLUHFWLRQFRQVLGHUHGDWWKHL¶WKVWRUH\$
FROXPQVZKHUHVWURQJFROXPQ±ZHDNEHDPFRQGLWLRQLVVDWLVILHGDWERWKERWWRP$
DQGWRSMRLQWV$
9SO5G$ 'HVLJQYDOXHRIVKHDUUHVLVWDQFHRIDPHPEHULQDFFRUGDQFHZLWK(1$
$
9ZE5G$ 6KHDUEXFNOLQJUHVLVWDQFHRIWKHZHESDQHO$
9ZS(G$ 'HVLJQVKHDUIRUFHLQZHESDQHOGXHWRGHVLJQVHLVPLFDFWLRQHIIHFWV$
9ZS5G$ 6KHDUUHVLVWDQFHRIWKHZHESDQHOLQDFFRUGDQFHZLWK(1$
:L$ 6HLVPLFZHLJKWRIL¶WKVWRUH\RIEXLOGLQJ$
:W$ 7RWDOVHLVPLFZHLJKWRIEXLOGLQJFRUUHVSRQGLQJWRWRWDOPDVV0W$
D$ &RQILQHPHQWHIIHFWLYHQHVVIDFWRUUDWLRRIWKHVPDOOHUEHQGLQJPRPHQWV0(G$DW$
RQHHQGRIWKHOLQNLQWKHVHLVPLFGHVLJQVLWXDWLRQWRWKHJUHDWHUEHQGLQJPRPHQWV$
0(G%DWWKHHQGZKHUHWKHSODVWLFKLQJHGHYHORSVERWKPRPHQWVEHLQJWDNHQDV$
DEVROXWHYDOXHV$
D*$ &RHIILFLHQWXVHGIRUGHWHUPLQLQJWKHJDSVL]HRIDVHLVPLFMRLQW$
DL$ 5DWLRRI9LV9LFFDOFXODWHGIRUDQ\L¶WKVWRUH\$
ǻML$ 5HGXFHGVWRUH\GULIWRIWKHM¶WKYHUWLFDOHOHPHQWDWL¶WKVWRUH\$
ǻ L DYJ $YHUDJHUHGXFHGVWRUH\GULIWRIWKHL¶WKVWRUH\$
įML$ (IIHFWLYHVWRUH\GULIWRIWKHM¶WKYHUWLFDOHOHPHQWDWL¶WKVWRUH\$
į L PD[ 0D[LPXPHIIHFWLYHVWRUH\GULIWRIWKHL¶WKVWRUH\$
ǻ)1$ $GGLWLRQDOHTXLYDOHQWVHLVPLFORDGDFWLQJRQWKH1¶WKVWRUH\ WRS RIEXLOGLQJ$
H$ 6KHDUDPSOLILFDWLRQIDFWRURIZDOO$
HD$ 7RWDOVWUDLQRIVWHHODW8OWLPDWH/LPLW6WDWH$
İFJ$ 8SSHUOLPLW FDSDFLW\ RIFRQFUHWHFRPSUHVVLYHVWUDLQLQWKHH[WUHPHILEHULQVLGHWKH$
FRQILQHPHQWUHLQIRUFHPHQWI
HFX$ 8OWLPDWHFRPSUHVVLYHVWUDLQRIXQFRQILQHGFRQFUHWH$
İV$ 8SSHUOLPLW FDSDFLW\ RIVWUDLQLQVWHHOUHLQIRUFHPHQW$
HV\G$ 'HVLJQYDOXHRIVWHHOVWUDLQDW\LHOG$
ȘWL$ 7RUVLRQDO,UUHJXODULW\)DFWRUGHILQHGDWL¶WKVWRUH\RIEXLOGLQJ$
ȘFL$ 6WUHQJWK,UUHJXODULW\)DFWRUGHILQHGDWL¶WKVWRUH\RIEXLOGLQJ$
ȘNL$ 6WLIIQHVV,UUHJXODULW\)DFWRUGHILQHGDWL¶WKVWRUH\RIEXLOGLQJ$
ĭ[LQ$ ,QEXLOGLQJVZLWKIORRUVPRGHOOHGDVULJLGGLDSKUDJPVKRUL]RQWDOFRPSRQHQW$
RIQ¶WKPRGHVKDSHLQWKH[GLUHFWLRQDWL¶WKVWRUH\RIEXLOGLQJ$
$
$
ĭ\LQ$ ,QEXLOGLQJVZLWKIORRUVPRGHOOHGDVULJLGGLDSKUDJPVKRUL]RQWDOFRPSRQHQW$
RIQ¶WKPRGHVKDSHLQWKH\GLUHFWLRQDWL¶WKVWRUH\RIEXLOGLQJ$
ĭTLQ$ ,QEXLOGLQJVZLWKIORRUVPRGHOOHGDVULJLGGLDSKUDJPVURWDWLRQDOFRPSRQHQW$
RIQ¶WKPRGHVKDSHDURXQGWKHYHUWLFDOD[LVDWL¶WKVWRUH\RIEXLOGLQJ$
ࢥ\$ <LHOGFXUYDWXUHFRUUHVSRQGLQJWRQRPLQDOSODVWLFPRPHQWI
ࢥ \$ &XUYDWXUHFRUUHVSRQGLQJWRILUVW\LHOG$
ī[Q$ 3DUWLFLSDWLRQ)DFWRURIQ¶WKPRGHIRU[GLUHFWLRQHDUWKTXDNH$
ȖRY$ 0DWHULDORYHUVWUHQJWKIDFWRU$
ȖSE$ )DFWRUDSSOLHGWRGHVLJQYDOXH1SO5GRI\LHOGUHVLVWDQFHLQWHQVLRQRIWKH$
FRPSUHVVLRQEUDFHLQD9EUDFLQJ$
Ȝ $ 1RQGLPHQVLRQDOVOHQGHUQHVVRIDPHPEHUDVGHILQHGLQ(1$
PM$ &XUYDWXUHGXFWLOLW\IDFWRU$
QZ G$$ $[LDOIRUFHLQVHLVPLFGHVLJQVLWXDWLRQQRUPDOLVHGWR$ $IF FG$
$ 9DOXHRI 5GL(GL T,RIWKHHOHPHQWLRIWKHVWUXFWXUHZKLFKKDVWKHKLJKHVW$
LQIOXHQFHRQWKHHIIHFW()XQGHUFRQVLGHUDWLRQ$
Z$ 0HFKDQLFDOUDWLRRIYHUWLFDOZHEUHLQIRUFHPHQW $ Y ȡY$\GY$ FG $
ZG $ 0HFKDQLFDOYROXPHWULFUDWLRRIFRQILQLQJUHLQIRUFHPHQW$
ȡ$ 7HQVLRQUHLQIRUFHPHQWUDWLR$
ȡ $ &RPSUHVVLRQUHLQIRUFHPHQWUDWLR$
ȡPD[$ 0D[LPXPWHQVLRQUHLQIRUFHPHQWUDWLRDOORZHGLQWKHFULWLFDOUHJLRQRIDSULPDU\$
EHDP$
ȡPLQ$ 0LQLPXPWHQVLRQUHLQIRUFHPHQWUDWLRWREHSURYLGHGDORQJDEHDP$
TL$ 6HFRQG2UGHU(IIHFW,QGLFDWRUGHILQHGDWL¶WKVWRUH\RIEXLOGLQJ$
TS$ 5RWDWLRQFDSDFLW\RIWKHSODVWLFKLQJHUHJLRQ$
¦ 0 5E$ 6XPRIGHVLJQYDOXHVRIPRPHQWUHVLVWDQFHVRIEHDPVIUDPLQJLQDMRLQWLQWKH$
GLUHFWLRQFRQVLGHUHG$
¦ 0 5F$ 6XPRIGHVLJQYDOXHVRIPRPHQWUHVLVWDQFHVRIFROXPQVIUDPLQJLQDMRLQWLQWKH$
GLUHFWLRQFRQVLGHUHG$
$
5HIHUHQFH6WDQGDUGV$
$
± 7KH$IROORZLQJ$VWDQGDUGV$DUH$DFFHSWDEOH$UHIHUHQFH$VWDQGDUGV$WR$EH$XWLOL]HG$LQ$
FRPELQDWLRQZLWKWKLVVWDQGDUG$
(1(XURFRGH±%DVLVRIVWUXFWXUDOGHVLJQ$
(1(XURFRGH±'HVLJQRIFRQFUHWHVWUXFWXUHV±3DUW*HQHUDO&RPPRQ$
UXOHVIRUEXLOGLQJDQGFLYLOHQJLQHHULQJVWUXFWXUHV$
(1(XURFRGH±'HVLJQRIVWHHOVWUXFWXUHV±3DUW*HQHUDO*HQHUDOUXOHV$
(1(XURFRGH±'HVLJQRIFRPSRVLWHVWHHODQGFRQFUHWHVWUXFWXUHV±3DUW$
*HQHUDOUXOHVDQGUXOHVIRUEXLOGLQJV$
(1(XURFRGH±*HRWHFKQLFDOGHVLJQ±3DUW*HQHUDOUXOHV$
(1(XURFRGH±'HVLJQRIVWUXFWXUHVIRUHDUWKTXDNHUHVLVWDQFH±3DUW$
)RXQGDWLRQVUHWDLQLQJVWUXFWXUHVDQGJHRWHFKQLFDODVSHFWV$
$
± 5HJDUGLQJ WKH XWLOL]DWLRQ RI WKH DERYHUHIHUHQFHG (XURFRGHV 1DWLRQDO$SSOLFDWLRQ$
'RFXPHQWVRIWKH8QLWHG.LQJGRPPD\EHDSSOLHG$
$
$
6(,60,&*5281'027,21$
$
(DUWKTXDNHOHYHOV$
$
7KHHDUWKTXDNHOHYHOVWREHFRQVLGHUHGLQWKLV&RGHDUHGHILQHGLQWKHIROORZLQJ$
$
± ( (DUWKTXDNH/HYHO7KLVHDUWKTXDNHOHYHOUHSUHVHQWVUHODWLYHO\IUHTXHQWEXWORZ$
LQWHQVLW\HDUWKTXDNHJURXQGPRWLRQVZLWKDKLJKSUREDELOLW\WRRFFXUGXULQJWKHVHUYLFHOLIHRI$
EXLOGLQJV$ZLWKLQ$WKH$VFRSH$RI$WKLV$&RGH$7KH$SUREDELOLW\$RI$H[FHHGDQFH$RI$( $OHYHO$
HDUWKTXDNHLQ\HDUVLVZKLFKFRUUHVSRQGVWRDUHWXUQSHULRGRI\HDUV$
$
± ( (DUWKTXDNH /HYHO 7KLV HDUWKTXDNH OHYHO UHSUHVHQWV WKH LQIUHTXHQW DQG KLJKHU$
LQWHQVLW\HDUWKTXDNHJURXQGPRWLRQVZLWKDORZSUREDELOLW\WRRFFXUGXULQJWKHVHUYLFHOLIHRI$
EXLOGLQJV$ZLWKLQ$WKH$VFRSH$RI$WKLV$&RGH$7KH$SUREDELOLW\$RI$H[FHHGDQFH$RI$( $OHYHO$
HDUWKTXDNHLQ\HDUVLVZKLFKFRUUHVSRQGVWRDUHWXUQSHULRGRI\HDUV$
$
± ( (DUWKTXDNH/HYHO7KLVHDUWKTXDNHOHYHOUHSUHVHQWVWKHKLJKHVWLQWHQVLW\YHU\$
LQIUHTXHQWHDUWKTXDNHJURXQGPRWLRQVWKDWWKHEXLOGLQJVZLWKLQWKHVFRSHRIWKLV&RGHPD\EH$
VXEMHFWHGWR7KHSUREDELOLW\RIH[FHHGDQFHRI ( OHYHOHDUWKTXDNHLQ\HDUVLVZKLFK$
FRUUHVSRQGVWRDUHWXUQSHULRGRI\HDUV$
$
5HSUHVHQWDWLRQRIJURXQGPRWLRQ(ODVWLF5HVSRQVH6SHFWUXP$
$
±:LWKLQWKHERXQGDULHVRI(PLUDWHRI'XEDLGDPSHGKRUL]RQWDOHODVWLFVSHFWUDO$
DFFHOHUDWLRQV$FRUUHVSRQGLQJ$WR$VKRUW$SHULRG$$VHFRQG $66'$$DQG$$VHFRQG$QDWXUDO$
YLEUDWLRQ SHULRG 6' DUH JLYHQ IRU ( ( DQG ( HDUWKTXDNH OHYHOV LQ 7DEOH IRU$
ORFDOVRLOFODVVHVGHILQHGLQ$QQH[$$
$
± (ODVWLF$UHVSRQVH$VSHFWUXP$UHSUHVHQWLQJ$WKH$KRUL]RQWDO$FRPSRQHQW$RI$HDUWKTXDNH$
JURXQGPRWLRQLVGHILQHGDVIROORZV )LJ $
6
6I ( 7 $Z 6I6'$Z$ 6'$7 7IR d 7
7IR$
6I ($7 $Z66'$ 7IR$d 7 d 76$
$ 6 $
6I ($7 $Z '$ 7I6 d 7I d 7/
7I
6 7
6I ( 7 $Z '$ /$ 7/$d 7 $
7I
$
6SHFWUXPFRUQHUSHULRGV7RDQG76DUHGHILQHGDV$
6
7I6$ Z '$7IR Z7I6 $
66'$
7UDQVLWLRQSHULRGWRORQJSHULRGUDQJHVKDOOEHWDNHQIRU(PLUDWHRI'XEDLDV7/ V$
$
$
$
$
$
7DEOH6KRUWSHULRGDQGVHFRQGHODVWLFVSHFWUDODFFHOHUDWLRQV$
(DUWKTXDNH/HYHO$
6RLO$
( $ ( $ ( $
&ODVV$
66'J$ 6'J$ 66'J$ 6'J$ 66'J$ 6'J$
$ $ $ $ $ $ $
%$ $ $ $ $ $ $
&$ $ $ $ $ $ $
'$ $ $ $ $ $ $
($ $ $ $ $ $ $
6LWHVSHFLILFJHRWHFKQLFDOLQYHVWLJDWLRQDQGG\QDPLFVLWH$
)$
UHVSRQVHDQDO\VLVUHTXLUHG VHH$QQH[$ $
$
$ 6 ($
$
$ 66'$
$
$
$ 6'$
BBBB
6I (
7$
$
6'$
$
66'$
$ 7/$
6I ( 6' BBBB$
$ 7
$
$
(XURSHDQ6WURQJ0RWLRQ'DWDEDVHKWWSZZZLVHVGFYLFDFXN(6'IUDPHVHWKWP$
-DSDQ.1(71,('KWWSZZZNQHWERVDLJRMS$
$
$±$,Q$WKH$FDVHV$ZKHUH$VXIILFLHQW$QXPEHU$RI$DFFHOHUDWLRQ$UHFRUGV$FDQQRW$EH$IRXQG$
DUWLILFLDOHDUWKTXDNHJURXQGPRWLRQVJHQHUDWHGDVFRPSDWLEOHZLWKWKHHDUWKTXDNHVLPXODWLRQV$
RU WKH HODVWLF UHVSRQVH VSHFWUXP PD\ EH XVHG 7KH VDPH DFFHOHUDWLRQ UHFRUG DFFHOHURJUDP $
VKDOO QRW EH XVHG IRU ERWK GLUHFWLRQV 7KH JURXQG PRWLRQ VLPXODWLRQV VKDOO EH EDVHG RQ D$
SK\VLFDO PRGHO FRQVLGHULQJ WKH IDXOW PHFKDQLVP UXSWXUH FKDUDFWHULVWLFV DQG WKH JHRORJLFDO$
VWUXFWXUHRIWKHPHGLXPEHWZHHQWKHHDUWKTXDNHVRXUFHDQGUHFRUGLQJVWDWLRQ$
$
±7KHDYHUDJHRIGDPSHGVSHFWUDODPSOLWXGHVFDOFXODWHGDW]HURSHULRGIURPHDFK$
VHWRIHDUWKTXDNH JURXQGPRWLRQVKDOOQRWEHOHVVWKDQ]HURSHULRGVSHFWUDODPSOLWXGHRIWKH$
HODVWLFUHVSRQVHVSHFWUXP 66' $
$
± 7KH GXUDWLRQ EHWZHHQ WKH WZR SRLQWV ZKHUH DFFHOHUDWLRQ DPSOLWXGH ILUVW DQG ODVW$
H[FHHGrJVKDOOQRWEHVKRUWHUWKDQWLPHVWKHGRPLQDQWQDWXUDOYLEUDWLRQSHULRGRIWKH$
EXLOGLQJQRUVHFRQGVIRUHDFKHDUWKTXDNHJURXQGPRWLRQUHFRUG$
$
±7KHUHVXOWDQWVSHFWUXPRIDQHDUWKTXDNHJURXQGPRWLRQVHWVKDOOEHREWDLQHGWKURXJK$
VTXDUHURRWRIVXPRIVTXDUHVRIGDPSHGVSHFWUDRIWKHWZRGLUHFWLRQV7KHDPSOLWXGHVRI$
HDUWKTXDNH$JURXQG$PRWLRQV$VKDOO$EH$VFDOHG$DFFRUGLQJ$WR$D$UXOH$VXFK$WKDW$WKH$DYHUDJH$RI$
DPSOLWXGHV$RI$WKH$UHVXOWDQW$VSHFWUD$RI$DOO$UHFRUGV$EHWZHHQ$WKH$SHULRGV$7$DQG$7$
7 'RPLQDQW QDWXUDO YLEUDWLRQ SHULRG RI WKH EXLOGLQJ VKDOO QRW EH OHVV WKDQ WLPHV WKH$
DPSOLWXGHVRIWKHHODVWLFUHVSRQVHVSHFWUXPDORQJWKHVDPHSHULRGUDQJH7KHVFDOLQJRIERWK$
FRPSRQHQWVVKDOOEHPDGHZLWKWKHVDPHIDFWRUV$
$
± 5HJDUGLQJ WKH VHLVPLF GHVLJQ RI WDOO EXLOGLQJV DFFRUGLQJ WR &KDSWHU LI QHHGHG$
SDUDPHWHUVUHODWHGWRYHUWLFDOFRPSRQHQWRIWKHHDUWKTXDNHJURXQGPRWLRQPD\EHVSHFLILHG$
VXEMHFWWRWKHDSSURYDORIWKH,QGHSHQGHQW5HYLHZ%RDUGZKHUHDSSOLFDEOH$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
6(,60,&3(5)250$1&(2%-(&7,9(6$
$
&ODVVLILFDWLRQRIEXLOGLQJV$
$
)RUWKHSXUSRVHRILGHQWLI\LQJVHLVPLFSHUIRUPDQFHREMHFWLYHVDVZHOODVDQDO\VLVDQGGHVLJQ$
UHTXLUHPHQWV$EXLOGLQJV$VKDOO$EH$FODVVLILHG$LQWR$WZR$JURXSV$QDPHO\$ORZ$WR$PHGLXPULVH$
EXLOGLQJVDQGWDOOEXLOGLQJV$
$
± 7DOO EXLOGLQJV DUH WKRVH RI PLQLPXP PHWHU KHLJKW PHDVXUHG IURP WKH ORZHVW$
JURXQGOHYHOH[FOXGLQJEDVHPHQWVWRULHVFRPSOHWHO\XQGHUJURXQGDQGVXUURXQGHGZLWKKLJK$
VWLIIQHVVSHULSKHUDOZDOOVDOODURXQG$
$
± %XLOGLQJVRWKHUWKDQWKRVHGHVFULEHGLQ DUHGHILQHGDVORZWRPHGLXPULVH$
EXLOGLQJV$
$
3HUIRUPDQFHOHYHOVDQGUDQJHV$
$
3HUIRUPDQFH OHYHOV RI ORZ WR PHGLXPULVH DQGRU WDOO EXLOGLQJV ZKHUHHYHU DSSOLFDEOH DUH$
GHILQHGEHORZZLWKUHVSHFWWRHVWLPDWHGGDPDJHOHYHOVLQHDUWKTXDNHV$
$
±,PPHGLDWH2FFXSDQF\±0LQLPXP'DPDJH ,2±0' 3HU RUPDQFH/HYHOGHVFULEHV$
D$SHUIRUPDQFH$ FRQGLWLRQ$ VXFK$WKDW$QR$VWUXFWXUDO$RU$
QRQVWUXFWXUDO$
GDPDJH$ ZRXOG$RFFXU$LQ$
EXLOGLQJVDQGLQWKHLUHOHPHQWVXQGHUWKHHIIHFWRIDQHDUWKTXDNHRULIDQ\WKHGDPDJHZRXOG$
EH$YHU\$OLPLWHG$,Q$WKLV$FRQGLWLRQ$WKH$EXLOGLQJ$FDQ$EH$RFFXSLHG$XQLQWHUUXSWHGO\$DQG$WKH$
SUREOHPVLIDQ\FDQEHIL[HGLQDIHZGD\VI
$
± /L H 6D HW\ ± &RQWUROOHG 'DPDJH /6 ± &' 3HU RUPDQFH /HYHO GHVFULEHV$D$
SHUIRUPDQFH FRQGLWLRQ ZKHUH OLPLWHG DQG UHSDLUDEOH VWUXFWXUDO DQG QRQVWUXFWXUDO GDPDJH LV$
SHUPLWWHG$LQ$EXLOGLQJV$DQG$LQ$WKHLU$HOHPHQWV$XQGHU$WKH$HIIHFW$RI$DQ$HDUWKTXDNH$,Q$WKLV$
FRQGLWLRQVKRUWWHUP DIHZZHHNVRUPRQWKV SUREOHPVUHODWHGWRRFFXSDQF\RIWKHEXLOGLQJ$
PD\EHH[SHFWHG$
$
±&ROODSVH3UHYHQWLRQ±([WHQVLYH'DPDJH &3±(' 3HU RUPDQFH/HYHOGHVFULEHVD$
SHUIRUPDQFHFRQGLWLRQZKHUHH[WHQVLYHGDPDJHPD\RFFXULQEXLOGLQJVDQGLQWKHLUHOHPHQWV$
XQGHUWKHHIIHFWRIDQHDUWKTXDNHSULRUWRWKHFROODSVHRIWKHEXLOGLQJ,QWKLVFRQGLWLRQORQJ$
WHUP SUREOHPV$ UHODWHG WR$
RFFXSDQF\$ RI WKH EXLOGLQJV$
PD\$RFFXU$RU WKH$
RFFXSDQF\$RI WKH$
EXLOGLQJVPD\EHWHUPLQDWHG$
$
± 7KH$UHJLRQV$LQ$EHWZHHQ$WKH$DERYHGHILQHG$SHUIRUPDQFH$OHYHOV$DUH$LGHQWLILHG$DV$
SHU RUPDQFH UDQJHV DV LQGLFDWHG LQ D VWUHQJWK ± W\SLFDO GHIRUPDWLRQ FXUYH )LJ 7KH$
UHJLRQEHORZ ,2±0' 3HUIRUPDQFH/HYHOLVGHILQHGDV,PPHGLDWH2FFXSDQF\0LQLPXPI
'DPDJH3HU RUPDQFH5DQJHWKHUHJLRQLQEHWZHHQ ,2±0' 3HUIRUPDQFH/HYHODQG /6±$
&' 3HUIRUPDQFH /HYHO LV GHILQHG DV/L H 6D HW\ &RQWUROOHG 'DPDJH 3HU RUPDQFH 5DQJH$
WKH UHJLRQ LQ EHWZHHQ /6 ± &' 3HUIRUPDQFH /HYHO DQG &3 ± (' 3HUIRUPDQFH /HYHO LV$
GHILQHGDV&ROODSVH3UHYHQWLRQ([WHQVLYH'DPDJH3HU RUPDQFH5DQJHDQGWKHUHJLRQDERYH$
WKH &3±(' 3HUIRUPDQFH/HYHOLVGHILQHGDV&ROODSVH5DQJH$
$
$
$
$
$
$
$
$
6WUHQJWK$
/6&'$ &3('$
$ ,20'$
$
$
$
$
$
,PPHGLDWH $ /LIH$ &ROODSVH$
$ 2FFXSDQF\$ 6DIHW\$ 3UHYHQWLRQ$ 7\SLFDO$
0LQLPXP'DPDJH$ &RQWUROOHG'DPDJH$ ([W'DPDJH$
$ 3HUIRUPDQFH$ 3HUIRUPDQFH$ 3HUIRUPDQFH$ &ROODSVH$ 'HIRUPDWLRQ$
5DQJH$ 5DQJH$ 5DQJH$ 5DQJH$
$
$
)LJXUH3HUIRUPDQFHOHYHOVDQGUDQJHV$
$
0LQLPXPSHUIRUPDQFHREMHFWLYHIRUORZWRPHGLXPULVHEXLOGLQJV$
$
$±$0LQLPXP$SHUIRUPDQFH$REMHFWLYH$IRU$ORZ$WR$PHGLXPULVH$EXLOGLQJV$ZLWK$DQ$
,PSRUWDQFH)DFWRURI, DFFRUGLQJWR 7DEOHLVLGHQWLILHGDV/L H6D HW\&RQWUROOHGI
'DPDJH 3HU RUPDQFH 2EMHFWLYH XQGHU ( OHYHO HDUWKTXDNH VSHFLILHG LQ :LWKRXW DQ\$
DQDO\WLFDO YHULILFDWLRQ LW LV LPSOLFLWO\ DVVXPHG WKDW D EXLOGLQJ GHVLJQHG WR WKLV SHUIRUPDQFH$
REMHFWLYHZRXOGDXWRPDWLFDOO\VDWLVI\,PPHGLDWH2FFXSDQF\0LQLPXP'DPDJH3HU RUPDQFHI
2EMHFWLYH XQGHU ( OHYHO HDUWKTXDNH DV ZHOO DV &ROODSVH 3UHYHQWLRQ ([WHQVLYH 'DPDJHI
3HU RUPDQFH2EMHFWLYHXQGHU ( OHYHOHDUWKTXDNH$
$
$±$0LQLPXP$SHUIRUPDQFH$REMHFWLYH$IRU$ORZ$WR$PHGLXPULVH$EXLOGLQJV$ZLWK$DQ$
,PSRUWDQFH)DFWRURI, DFFRUGLQJWR 7DEOHLVLGHQWLILHGDV,PPHGLDWH2FFXSDQF\I
0LQLPXP 'DPDJH 3HU RUPDQFH 2EMHFWLYH XQGHU$( $OHYHO$HDUWKTXDNH$VSHFLILHG$LQ$$
:LWKRXW DQ\ DQDO\WLFDO YHULILFDWLRQ LW LV LPSOLFLWO\ DVVXPHG WKDW D EXLOGLQJ GHVLJQHG WR WKLV$
SHUIRUPDQFH$REMHFWLYH$ZRXOG$DXWRPDWLFDOO\$VDWLVI\$/L HI 6D HW\I I &RQWUROOHGI 'DPDJHI
3HU RUPDQFH2EMHFWLYHXQGHU ( HDUWKTXDNHOHYHOHDUWKTXDNH$
$
$±$0LQLPXP$SHUIRUPDQFH$REMHFWLYH$IRU$ORZ$WR$PHGLXPULVH$EXLOGLQJV$ZLWK$DQ$
,PSRUWDQFH )DFWRU EHWZHHQ , DQG , DFFRUGLQJ WR 7DEOH LV LGHQWLILHG DV LQ$
EHWZHHQ,PPHGLDWH2FFXSDQF\0LQLPXP'DPDJH3HU RUPDQFH2EMHFWLYHDQG/L H6D HW\I
&RQWUROOHG'DPDJH3HU RUPDQFH2EMHFWLYHXQGHU ( OHYHOHDUWKTXDNHVSHFLILHGLQ$
$
± 8SRQWKHUHTXLUHPHQWRIWKH2ZQHURUWKHUHOHYDQW6WDWH$XWKRULW\WKHDERYHJLYHQ$
PLQLPXPSHUIRUPDQFHREMHFWLYHVIRUVSHFLDOORZWRPHGLXPULVHEXLOGLQJVPD\EHHQKDQFHG$
E\DVVLJQLQJKLJKHULPSRUWDQFHIDFWRUVZLWKLQWKHOLPLWVRI7DEOH$
$
0XOWLSOHPLQLPXPSHUIRUPDQFHREMHFWLYHVIRUWDOOEXLOGLQJV$
$
0LQLPXP SHUIRUPDQFH REMHFWLYHV LGHQWLILHG IRU WDOO EXLOGLQJV DUH JLYHQ EHORZ 7DEOH $
GHSHQGLQJXSRQWKHHDUWKTXDNHOHYHOVGHILQHGLQ$
$
± 7KH PXOWLSOH SHUIRUPDQFH REMHFWLYHV RI WDOO EXLOGLQJV LQ1RUPDO 2FFXSDQF\ &ODVV$
UHVLGHQFH KRWHO RIILFH EXLOGLQJ HWF DUH LGHQWLILHG DV ,PPHGLDWH 2FFXSDQF\ 0LQLPXPI
'DPDJHI3HU RUPDQFHI2EMHFWLYHIXQGHU$( $OHYHO$HDUWKTXDNH$/L HI6D HW\II&RQWUROOHGI
$
$
$
$
*(1(5$/*8,'(/,1(6)25$55$1*(0(172)%8,/',1*$
6758&785$/6<67(06$
$
6WUXFWXUDOVLPSOLFLW\$
$
± 6WUXFWXUDO VLPSOLFLW\ LV FKDUDFWHULVHG E\ WKH H[LVWHQFH RI FOHDU DQG GLUHFW SDWKV IRU$
WKHWUDQVPLVVLRQRIWKHVHLVPLFIRUFHV$
$
± 0RGHOLQJ DQDO\VLV GLPHQVLRQLQJ GHWDLOLQJ DQG FRQVWUXFWLRQ RI VLPSOH VWUXFWXUHV$
DUHVXEMHFWWRPXFKOHVVXQFHUWDLQW\DQGWKXVWKHSUHGLFWLRQRIWKHLUVHLVPLFEHKDYLRXULVPXFK$
PRUHUHOLDEOH$
$
8QLIRUPLW\V\PPHWU\DQGUHGXQGDQF\$
$
±8QLIRUPLW\LQSODQLVFKDUDFWHULVHGE\DQHYHQGLVWULEXWLRQRIWKHVWUXFWXUDOHOHPHQWV$
ZKLFKDOORZVGLUHFWWUDQVPLVVLRQRIWKHLQHUWLDIRUFHVFUHDWHGLQWKHGLVWULEXWHGPDVVHVRIWKH$
EXLOGLQJ$,I$QHFHVVDU\$XQLIRUPLW\$PD\$EH$UHDOLVHG$E\$VXEGLYLGLQJ$WKH$HQWLUH$EXLOGLQJ$E\$
VHLVPLF MRLQWV LQWR G\QDPLFDOO\ LQGHSHQGHQW$ XQLWV SURYLGHG WKDW WKHVH MRLQWV DUH GHVLJQHG$
DJDLQVWSRXQGLQJRIWKHLQGLYLGXDOXQLWVLQDFFRUGDQFHZLWK$
$
± 8QLIRUPLW\ LQ WKH GHYHORSPHQW RI WKH VWUXFWXUH DORQJ WKH KHLJKW RI WKH EXLOGLQJ LV$
DOVRHVVHQWLDODVLWWHQGVWRHOLPLQDWHWKHRFFXUUHQFHRIVHQVLWLYH]RQHVZKHUHKLJKVWUHVVRU$
GXFWLOLW\GHPDQGVPLJKWFRQFHQWUDWH$
$
±$VLPLODULW\EHWZHHQWKHGLVWULEXWLRQRIPDVVHVDQGWKHGLVWULEXWLRQRIUHVLVWDQFHDQG$
VWLIIQHVVHOLPLQDWHVODUJHHFFHQWULFLWLHVEHWZHHQPDVVDQGVWLIIQHVV$
$
± ,I WKH EXLOGLQJ FRQILJXUDWLRQ LV V\PPHWULFDO RU TXDVLV\PPHWULFDO D V\PPHWULFDO$
OD\RXWRIVWUXFWXUDOHOHPHQWVZKLFKVKRXOGEHZHOOGLVWULEXWHGLQSODQLVDSSURSULDWHIRUWKH$
DFKLHYHPHQWRIXQLIRUPLW\$
$
± 7KHXVHRIHYHQO\GLVWULEXWHGVWUXFWXUDOHOHPHQWVLQFUHDVHVUHGXQGDQF\DQGDOORZVD$
PRUHIDYRXUDEOHUHGLVWULEXWLRQRIDFWLRQHIIHFWVDQGZLGHVSUHDGHQHUJ\GLVVLSDWLRQDFURVVWKH$
HQWLUHVWUXFWXUH$
$
$GHTXDWHUHVLVWDQFHDQGVWLIIQHVV$
$
± +RUL]RQWDO VHLVPLF PRWLRQ LV D ELGLUHFWLRQDO SKHQRPHQRQ DQG WKXV WKH EXLOGLQJ$
VWUXFWXUH VKDOO EH DEOH WR UHVLVW KRUL]RQWDO DFWLRQV LQ DQ\ GLUHFWLRQ ,Q WKLV UHVSHFW VWUXFWXUDO$
HOHPHQWV$ VKRXOG$EH$ DUUDQJHG$ LQ$DQ$RUWKRJRQDO$ LQSODQ$ VWUXFWXUDO$ SDWWHUQ$ HQVXULQJ$VLPLODU$
UHVLVWDQFHDQGVWLIIQHVVFKDUDFWHULVWLFVLQERWKPDLQGLUHFWLRQV$
$
± ,Q DGGLWLRQ WR ODWHUDO UHVLVWDQFH DQG VWLIIQHVV EXLOGLQJ VWUXFWXUHV VKRXOG SRVVHVV$
DGHTXDWH$WRUVLRQDO$UHVLVWDQFH$DQG$VWLIIQHVV$LQ$RUGHU$WR$OLPLW$WKH$GHYHORSPHQW$RI$WRUVLRQDO$
PRWLRQV ZKLFK WHQG WR VWUHVV WKH GLIIHUHQW VWUXFWXUDO HOHPHQWV LQ D QRQXQLIRUP ZD\ ,Q WKLV$
UHVSHFWDUUDQJHPHQWVLQZKLFKWKHPDLQHOHPHQWVUHVLVWLQJWKHVHLVPLFDFWLRQDUHGLVWULEXWHG$
FORVHWRWKHSHULSKHU\RIWKHEXLOGLQJSUHVHQWFOHDUDGYDQWDJHV$
$
$
$
$
$
$
'LDSKUDJPDFWLRQ$
$
± ,Q EXLOGLQJV IORRUV LQFOXGLQJ WKH URRI SOD\ D YHU\ LPSRUWDQW UROH LQ WKH RYHUDOO$
VHLVPLFEHKDYLRXURIWKHVWUXFWXUH7KH\DFWDVKRUL]RQWDOGLDSKUDJPVWKDWFROOHFWDQGWUDQVPLW$
WKHLQHUWLDIRUFHVWRWKHYHUWLFDOVWUXFWXUDOV\VWHPVDQGHQVXUHWKDWWKRVHV\VWHPVDFWWRJHWKHU$
LQ UHVLVWLQJ WKH KRUL]RQWDO VHLVPLF DFWLRQ 7KH DFWLRQ RI IORRUV DV GLDSKUDJPV LV HVSHFLDOO\$
UHOHYDQW LQ FDVHV RI FRPSOH[ DQG QRQXQLIRUP OD\RXWV RI WKH YHUWLFDO VWUXFWXUDO V\VWHPV RU$
ZKHUHV\VWHPVZLWKGLIIHUHQWKRUL]RQWDOGHIRUPDELOLW\FKDUDFWHULVWLFVDUHXVHGWRJHWKHU HJLQ$
GXDORUPL[HGV\VWHPV $
$
± )ORRUV\VWHPVDQGWKHURRIVKRXOGEHSURYLGHGZLWKLQSODQHVWLIIQHVVDQGUHVLVWDQFH$
DQG ZLWK$ HIIHFWLYH$ FRQQHFWLRQ WR WKH YHUWLFDO VWUXFWXUDO V\VWHPV 3DUWLFXODU$ FDUH VKRXOG EH$
WDNHQ LQ FDVHV RI QRQFRPSDFW RU YHU\ HORQJDWHG LQSODQ VKDSHV DQG LQ FDVHV RI ODUJH IORRU$
RSHQLQJV HVSHFLDOO\ LI WKH ODWWHU DUH ORFDWHG LQ WKH YLFLQLW\ RI WKH PDLQ YHUWLFDO VWUXFWXUDO$
HOHPHQWV$WKXV$KLQGHULQJ$VXFK$HIIHFWLYH$FRQQHFWLRQ$EHWZHHQ$WKH$YHUWLFDO$DQG$KRUL]RQWDO$
VWUXFWXUH$
$
$±$'LDSKUDJPV$VKRXOG$KDYH$VXIILFLHQW$LQSODQH$VWLIIQHVV$IRU$WKH$GLVWULEXWLRQ$RI$
KRUL]RQWDOLQHUWLDIRUFHVWRWKHYHUWLFDOVWUXFWXUDOV\VWHPVLQDFFRUGDQFHZLWKWKHDVVXPSWLRQV$
RI$WKH$DQDO\VLV$SDUWLFXODUO\$ZKHQ$WKHUH$DUH$VLJQLILFDQW$FKDQJHV$LQ$VWLIIQHVV$RU$RIIVHWV$RI$
YHUWLFDOHOHPHQWVDERYHDQGEHORZWKHGLDSKUDJP$
$
±7KHGLDSKUDJPPD\EHWDNHQDVEHLQJULJLGLIZKHQLWLVPRGHOHGZLWKLWVDFWXDOLQ$
SODQH IOH[LELOLW\ LWV KRUL]RQWDO GLVSODFHPHQWV QRZKHUH H[FHHGWKRVH UHVXOWLQJ IURP WKH ULJLG$
GLDSKUDJP$DVVXPSWLRQ$E\$PRUH$WKDQ$$RI$WKH$FRUUHVSRQGLQJ$DEVROXWH$KRUL]RQWDO$
GLVSODFHPHQWVXQGHUVHLVPLFORDGV$
$
$GHTXDWHIRXQGDWLRQ$
$
±:LWKUHJDUGWRWKHVHLVPLFDFWLRQWKHGHVLJQDQGFRQVWUXFWLRQRIWKHIRXQGDWLRQVDQG$
RIWKHFRQQHFWLRQWRWKHVXSHUVWUXFWXUHVKDOOHQVXUHWKDWWKHZKROHEXLOGLQJLVVXEMHFWHGWRD$
XQLIRUPVHLVPLFH[FLWDWLRQ$
$
± )RU EXLOGLQJV ZLWK LQGLYLGXDO IRXQGDWLRQ HOHPHQWV IRRWLQJV RUSLOHV WKH XVH RI D$
IRXQGDWLRQVODERUWLHEHDPVEHWZHHQWKHVHHOHPHQWVLQERWKPDLQGLUHFWLRQVLVUHFRPPHQGHG$
$
$
$
$
$
$
$
$
$
$
$
$
5(*8/$5,7<5(48,5(0(176$
$
5HJXODULW\ UHTXLUHPHQWV RI EXLOGLQJ VWUXFWXUDO V\VWHPV DUH LQGLUHFWO\ VSHFLILHG WKURXJK WKH$
GHILQLWLRQRILUUHJXODUEXLOGLQJV$
$
'HILQLWLRQRI,UUHJXODU%XLOGLQJV$
$
5HJDUGLQJWKHGHILQLWLRQRILUUHJXODUEXLOGLQJVW\SHVRILUUHJXODULWLHVLQSODQDQGLQHOHYDWLRQ$
DUHJLYHQLQ7DEOHDQGUHOHYDQWFRQGLWLRQVDUHJLYHQLQ$
$
&RQGLWLRQVIRU,UUHJXODU%XLOGLQJV$
$
&RQGLWLRQVUHODWHGWRLUUHJXODULWLHVGHILQHGLQ7DEOHDUHJLYHQEHORZ$
$
±,UUHJXODULW\W\SHV$ DQG % JRYHUQWKHVHOHFWLRQRIWKHPHWKRGRIVHLVPLFDQDO\VLV$
DVVSHFLILHGLQ$
$
±,QEXLOGLQJVZLWKLUUHJXODULW\W\SHV$DQG$LWVKDOOEHYHULILHGE\FDOFXODWLRQWKDW$
WKH IORRU V\VWHPV DUH FDSDEOH RI VDIH WUDQVIHU RI VHLVPLF ORDGV EHWZHHQ YHUWLFDO VWUXFWXUDO$
HOHPHQWV$
$
±,QEXLOGLQJVZLWKLUUHJXODULW\W\SH %LQWKHUDQJH d KFL PLQ %HKDYLRXUI
)DFWRUJLYHQLQ &KDSWHU RU&KDSWHUDVDSSURSULDWHVKDOOEHPXOWLSOLHGE\ KFL PLQ$
ZKLFK VKDOO EH DSSOLFDEOH WR WKH HQWLUH EXLOGLQJ LQ ERWK HDUWKTXDNH GLUHFWLRQV ,Q QR FDVH$
KRZHYHU KFL VKDOO EH SHUPLWWHG 2WKHUZLVH VWUHQJWK DQG VWLIIQHVV RI WKH ZHDN VWRUH\$
VKDOOEHLQFUHDVHGDQGWKHVHLVPLFDQDO\VLVVKDOOEHUHSHDWHG$
$
±&RQGLWLRQVUHODWHGWREXLOGLQJVZLWKLUUHJXODULWLHVRIW\SH%DUHJLYHQEHORZ$
D :LWK WKH H[FHSWLRQ RI SDUDJUDSK E EHORZ DOO LQWHUQDO IRUFH FRPSRQHQWV LQGXFHG E\$
VHLVPLF ORDGV VKDOO EH LQFUHDVHG E\ IRU EHDPV DQG FROXPQV VXSSRUWLQJ GLVFRQWLQXRXV$
YHUWLFDOHOHPHQWV$
E 6WUXFWXUDOZDOOVVKDOOLQQRFDVHEHSHUPLWWHGLQWKHLURZQSODQHWRUHVWRQWKHEHDPVSDQ$
RURQVODEVDWDQ\VWRUH\RIWKHEXLOGLQJ$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7DEOH±,UUHJXODU%XLOGLQJV$
$
±,55(*8/$5,7,(6,13/$1 $ 5HODWHG,WHPV$
±7RUVLRQDO,UUHJXODULW\$ $
7KHFDVHZKHUH7RUVLRQDO,UUHJXODULW\)DFWRUKELZKLFKLVGHILQHG$ $
IRUDQ\RIWKHWZRRUWKRJRQDOHDUWKTXDNHGLUHFWLRQVDVWKHUDWLRRI$ $
WKHPD[LPXPVWRUH\GULIWDWDQ\VWRUH\WRWKHDYHUDJHVWRUH\GULIWDW$ $
WKHVDPHVWRUH\LQWKHVDPHGLUHFWLRQLVJUHDWHUWKDQ$ $
>KWL 'L PD[ 'L DYJ!@$
6WRUH\GUL WVVKDOOEHFDOFXODWHGLQDFFRUGDQFHZLWKE\I
FRQVLGHULQJWKHHI HFWVR rDFFLGHQWDOHFFHQWULFLWLHV$
±)ORRU'LVFRQWLQXLWLHV$ $
,QDQ\IORRU$ $
,7KHFDVHZKHUHWKHWRWDODUHDRIWKHRSHQLQJVLQFOXGLQJWKRVHRI$ $
$
VWDLUVDQGHOHYDWRUVKDIWVH[FHHGVRIWKHJURVVIORRUDUHD$
$
,,±7KHFDVHVZKHUHORFDOIORRURSHQLQJVPDNHLWGLIILFXOWWKHVDIH$ $
WUDQVIHURIVHLVPLFORDGVWRYHUWLFDOVWUXFWXUDOHOHPHQWV$
,,,±7KHFDVHVRIDEUXSWUHGXFWLRQVLQWKHLQSODQHVWLIIQHVVDQG$
VWUHQJWKRIIORRUV$
±3URMHFWLRQVLQ3ODQ$
7KHFDVHVZKHUHSURMHFWLRQVEH\RQGWKHUHHQWUDQWFRUQHUVLQERWKRI$
$
WKHWZRSULQFLSDOGLUHFWLRQVLQSODQH[FHHGWKHWRWDOSODQGLPHQVLRQV$
RIWKHEXLOGLQJLQWKHUHVSHFWLYHGLUHFWLRQVE\PRUHWKDQ$
%±,55(*8/$5,7,(6,1(/(9$7,21$ 5HODWHG,WHPV$
%±,QWHUVWRUH\6WUHQJWK,UUHJXODULW\ :HDN6WRUH\ $ $
,QUHLQIRUFHGFRQFUHWHEXLOGLQJVWKHFDVHZKHUHLQHDFKRIWKH$ $
RUWKRJRQDOHDUWKTXDNHGLUHFWLRQV6WUHQJWK,UUHJXODULW\)DFWRUKFL$ $
ZKLFKLVGHILQHGDVWKHUDWLRRIWKHVKHDUVWUHQJWKRIDQ\VWRUH\WR$ $
WKHVKHDUVWUHQJWKRIWKHVWRUH\LPPHGLDWHO\DERYHLVOHVVWKDQ$ $
>KFL 9L9L@$
6KHDUVWUHQJWKR DVWRUH\LVWKHVXPR GHVLJQVKHDUVWUHQJWKVR I
YHUWLFDOHOHPHQWVDFFRUGLQJWR&KDSWHURU&KDSWHUDVI
DSSURSULDWHI
%±,QWHUVWRUH\6WLIIQHVV,UUHJXODULW\ 6R W6WRUH\ $ $
7KHFDVHZKHUHLQHDFKRIWKHWZRRUWKRJRQDOHDUWKTXDNHGLUHFWLRQV$ $
6WLI QHVV,UUHJXODULW\)DFWRUKNLZKLFKLVGHILQHGDVWKHUDWLRRIWKH$ $
$
DYHUDJHVWRUH\GULIWDWDQ\VWRUH\WRWKHDYHUDJHVWRUH\GULIWDWWKH$ $
VWRUH\LPPHGLDWHO\DERYHLVJUHDWHUWKDQ$ $
>KNL 'LKL RUW 'LKL RUW!$
6WRUH\GUL WVVKDOOEHFDOFXODWHGLQDFFRUGDQFHZLWKE\I
FRQVLGHULQJWKHHI HFWVR rDFFLGHQWDOHFFHQWULFLWLHV$
%'LVFRQWLQXLW\RI9HUWLFDO6WUXFWXUDO(OHPHQWV$ $
7KHFDVHVZKHUHFROXPQVDUHUHPRYHGDWVRPHVWRULHVDQGVXSSRUWHG$ $
E\EHDPVRUFROXPQVXQGHUQHDWKRUVWUXFWXUDOZDOOVRIXSSHUVWRULHV$ $
DUHVXSSRUWHGE\FROXPQVRUEHDPVXQGHUQHDWK$ $
$
$
$
$
35,0$5<$1'6(&21'$5<6(,60,&0(0%(56$
$
3ULPDU\PHPEHUV$
$
OOVWUXFWXUDOPHPEHUVQRWGHVLJQDWHGDVEHLQJVHFRQGDU\VHLVPLFPHPEHUVDFFRUGLQJWR$
DUHWDNHQDVEHLQJSULPDU\VHLVPLFPHPEHUV7KH\VKDOOEHWDNHQDVEHLQJSDUWRIWKHODWHUDO$
IRUFHUHVLVWLQJV\VWHPDQGGHVLJQHGDQGGHWDLOHGIRUHDUWKTXDNHUHVLVWDQFHLQDFFRUGDQFHZLWK$
WKHUXOHVRI&KDSWHUVDQG$
$
6HFRQGDU\PHPEHUV$
$
± &HUWDLQ$VWUXFWXUDO$PHPEHUV$HJ$EHDPV$DQGRU$FROXPQV $PD\$EH$GHVLJQDWHG$DV$
VHFRQGDU\ VHLVPLF PHPEHUV RU HOHPHQWV QRW IRUPLQJ SDUW RI WKH VHLVPLF DFWLRQ UHVLVWLQJ$
V\VWHP RI WKH EXLOGLQJ 7KH VWUHQJWK DQG VWLIIQHVV RI WKHVH HOHPHQWV DJDLQVW VHLVPLF DFWLRQV$
VKDOOEHQHJOHFWHG7KH\GRQRWQHHGWRFRQIRUPWRWKHUHTXLUHPHQWVRI &KDSWHUVDQG $
1RQHWKHOHVVWKHVHPHPEHUVDQGWKHLUFRQQHFWLRQVVKDOOEHGHVLJQHGDQGGHWDLOHGWRPDLQWDLQ$
VXSSRUW$RI$JUDYLW\$ORDGLQJ$ZKHQ$VXEMHFWHG$WR$WKH$GLVSODFHPHQWV$FDXVHG$E\$WKH$PRVW$
XQIDYRXUDEOH VHLVPLF GHVLJQ FRQGLWLRQ$ OORZDQFH RI VHFRQGRUGHU HIIHFWV VKDOO EH PDGH LQ$
WKHGHVLJQRIWKHVHPHPEHUV$
$
± 7RWDO FRQWULEXWLRQ WR ODWHUDO VWLIIQHVV RI DOO VHFRQGDU\ VHLVPLF PHPEHUV VKDOO QRW$
H[FHHGRIWKDWRIDOOSULPDU\VHLVPLFPHPEHUV$
$
± 7KH GHVLJQDWLRQ RI VRPH VWUXFWXUDO HOHPHQWV DV VHFRQGDU\ VHLVPLF PHPEHUV LV QRW$
DOORZHGWRFKDQJHWKHFODVVLILFDWLRQRIWKHVWUXFWXUHIURPQRQUHJXODUWRUHJXODUDVGHVFULEHG$
LQ$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
&+$37(5$
6(,60,&$1$/<6,65(48,5(0(1762)%8,/',1*6$
$
3$5$0(7(562)'(6,*15(63216(63(&7580$
$
,PSRUWDQFH)DFWRUV$
$
'HSHQGLQJRQSXUSRVHRIRFFXSDQF\RIEXLOGLQJ%XLOGLQJ,PSRUWDQFH)DFWRUV , DUHGHILQHG$
DVJLYHQLQ7DEOH$
$
7DEOH±%XLOGLQJ,PSRUWDQFH)DFWRUV , $
3XUSRVHRI2FFXSDQF\RI%XLOGLQJ$ , $
D %XLOGLQJVUHTXLUHGWREHXWLOLVHGLPPHGLDWHO\DIWHUWKHHDUWKTXDNH$
+RVSLWDOVGLVSHQVDULHVKHDOWKZDUGVILUHILJKWLQJEXLOGLQJVDQG$
IDFLOLWLHV377DQGRWKHUWHOHFRPPXQLFDWLRQIDFLOLWLHVWUDQVSRUWDWLRQ$
$
VWDWLRQVDQGWHUPLQDOVSRZHUJHQHUDWLRQDQGGLVWULEXWLRQIDFLOLWLHV$
$
JRYHUQRUDWHFRXQW\DQGPXQLFLSDOLW\DGPLQLVWUDWLRQEXLOGLQJVILUVW$
$
DLGDQGHPHUJHQF\SODQQLQJVWDWLRQV $
E %XLOGLQJVFRQWDLQLQJRUVWRULQJWR[LFH[SORVLYHDQGRUIODPPDEOH$
PDWHULDOVHWF$
D 6FKRROVRWKHUHGXFDWLRQDOEXLOGLQJVDQGIDFLOLWLHVGRUPLWRULHV$ $
DQGKRVWHOVPLOLWDU\EDUUDFNVSULVRQVHWF$ $
E 0XVHXPV$ $
6SRUWIDFLOLWLHVFLQHPDWKHDWUHDQGFRQFHUWKDOOVHWF$ $
%XLOGLQJVRWKHUWKDQDERYHGHILQHGEXLOGLQJV 5HVLGHQWLDODQG$
$
RIILFHEXLOGLQJVKRWHOVEXLOGLQJOLNHLQGXVWULDOVWUXFWXUHVHWF $
$
$
6HLVPLF/RDG5HGXFWLRQ)DFWRUV$
$
± (ODVWLF VHLVPLF ORDGV GHWHUPLQHG LQ WHUPV RI VSHFWUDO DFFHOHUDWLRQV GHILQHG LQ $
VKDOO EH GLYLGHG WR EHORZGHILQHG6HLVPLF /RDG 5HGXFWLRQ )DFWRU WR DFFRXQW IRU WKH GXFWLOH$
EHKDYLRXU$RI$WKH$VWUXFWXUDO$V\VWHP$GXULQJ$HDUWKTXDNH$3HULRGGHSHQGHQW$6HLVPLFI /RDGI
5HGXFWLRQ)DFWRU$ T5 7 VKDOOEHGHWHUPLQHGE\ (TV LQWHUPVRI%HKDYLRXU)DFWRUT$
UHSUHVHQWLQJ WKH GXFWLOLW\ FDSDFLW\ RI WKH VWUXFWXUH DQG WKH %XLOGLQJ ,PSRUWDQFH )DFWRU ,I
LQGLFDWLQJWKHSHUIRUPDQFHREMHFWLYHRIWKHEXLOGLQJ$
§ZTI ·Z7I
TI5$7 $̈ $̧Z $ d 7Id 76
$ ©Z,I ¹Z76$ $ $
T
T5 7 $ 76$ 7 $
,I
ZKHUH T, UDWLRVKDOOQRWEHWDNHQOHVVWKDQXQLW\$
$
$
$
$
$
$
$
6(,60,&$1$/<6,6$
$
$SSOLFDEOHDQDO\VLVPHWKRGV$
$
7KH DQDO\VLV PHWKRGV DSSOLFDEOH IRU WKH VHLVPLF DQDO\VLV RI EXLOGLQJ VWUXFWXUDO V\VWHPV DUH$
JLYHQLQWKHIROORZLQJ$
$
± (TXLYDOHQW 6HLVPLF /RDG 0HWKRG GHVFULEHG LQ LV WKH VLPSOLILHG VLQJOHPRGH$
UHVSRQVHVSHFWUXP DQDO\VLV PHWKRG ZKLFK FDQ EH XVHG IRU ORZ WR PHGLXPULVH EXLOGLQJV$
ZLWKFRQGLWLRQVJLYHQLQ$
$
± 0XOWL0RGH 5HVSRQVH 6SHFWUXP $QDO\VLV 0HWKRG GHVFULEHG LQ LV DQ DGYDQFHG$
OLQHDUG\QDPLFDQDO\VLVPHWKRGZKLFKFDQEHXVHGIRUERWKORZWRPHGLXPULVHDVZHOODV$
WDOOEXLOGLQJV$
$
± /LQHDU5HVSRQVH+LVWRU\$QDO\VLV0HWKRGGHVFULEHGLQ LVWKHPRVWDGYDQFHG$
OLQHDUG\QDPLFDQDO\VLVPHWKRGZKLFKFDQEHXVHGIRUERWKORZWRPHGLXPULVHDVZHOODV$
WDOOEXLOGLQJV$
$
± 1RQOLQHDU 5HVSRQVH +LVWRU\ $QDO\VLV 0HWKRG$GHVFULEHG$LQ$ LV$WKH$PRVW$
DGYDQFHG QRQOLQHDU G\QDPLF DQDO\VLV PHWKRG ZKLFK FDQ EH XVHG IRU ERWK ORZ WR PHGLXP$
ULVHDQGWDOOEXLOGLQJV$
$
6HOHFWLRQRIDQDO\VLVPHWKRGIRUORZWRPHGLXPULVHEXLOGLQJV$
$
±(TXLYDOHQW6HLVPLF/RDG0HWKRGFDQEHXVHGIRUVWUXFWXUHVZLWK+1dPSURYLGHG$
WKDWW\SH$ WRUVLRQDOLUUHJXODULW\IDFWRULQDQ\VWRU\GRHVQRWH[FHHG ȘWLd±VHH 7DEOH$
W\SH%LUUHJXODULW\GRHVQRWH[LVWVZLWKUHIHUHQFHWR$
$
± 0XOWL0RGH5HVSRQVH6SHFWUXP$QDO\VLV0HWKRGLVWKHDFFHSWDEOHDQDO\VLVPHWKRG$
IRUDOOORZWRPHGLXPULVHEXLOGLQJV$
$
'HILQLWLRQRIVHLVPLFPDVV$
$
7RWDOVHLVPLFPDVVRIWKHEXLOGLQJ0WVKDOOEHGHWHUPLQHGE\(T $
: 1
$ 0IW$ $ W $ ¦ :L$:L$ *IL ZQI QI 4I$
L$ $
JI JI L $
ZKHUHOLYHORDGPDVVUHGXFWLRQIDFWRU Q DQGOLYHORDGSDUWLFLSDWLRQIDFWRU Q VKDOOEHWDNHQ$
IURP7DEOHDQG7DEOHUHVSHFWLYHO\$
$
7DEOH±/LYHORDGPDVVUHGXFWLRQIDFWRU Q $
7\SHRIRFFXSDQF\$ QI$
6WRUH\VZLWKFRUUHODWHGRFFXSDQFLHV$ $
6WRUH\VZLWKLQGHSHQGHQWRFFXSDQFLHV$ $
$
$
$
$
&RQVLGHUDWLRQRIYHUWLFDOFRPSRQHQWRIHDUWKTXDNH$
$
± 9HUWLFDOFRPSRQHQWRIWKHVHLVPLFDFWLRQDVGHILQHGLQ VKDOOEHWDNHQLQWR$
DFFRXQWIRUWKHFDVHVOLVWHGEHORZ$
D +RUL]RQWDORUQHDUO\KRUL]RQWDOVWUXFWXUDOPHPEHUVVSDQQLQJPRUPRUH$
E +RUL]RQWDORUQHDUO\KRUL]RQWDOFDQWLOHYHUFRPSRQHQWVORQJHUWKDQP$
F +RUL]RQWDORUQHDUO\KRUL]RQWDOSUHVWUHVVHGFRPSRQHQWV$
G %HDPVVXSSRUWLQJFROXPQV$
$
± 7KH DQDO\VLV IRU GHWHUPLQLQJ WKH HIIHFWV RI WKH YHUWLFDO FRPSRQHQW RI WKH VHLVPLF$
DFWLRQPD\EHEDVHGRQDSDUWLDOPRGHORIWKHVWUXFWXUHZKLFKLQFOXGHVWKHHOHPHQWVRQZKLFK$
WKHYHUWLFDOFRPSRQHQWLVFRQVLGHUHGWRDFW HJWKRVHOLVWHGLQ DQGWDNHVLQWRDFFRXQW$
WKHVWLIIQHVVRIWKHDGMDFHQWHOHPHQWV$
$
± 7KH$HIIHFWV$RI$WKH$YHUWLFDO$
FRPSRQHQW$ QHHG$ EH$WDNHQ$ LQWR$DFFRXQW$
RQO\$ IRU$WKH$
HOHPHQWV$XQGHU$FRQVLGHUDWLRQ$HJ$WKRVH$OLVWHG$LQ$ $DQG$WKHLU$GLUHFWO\$DVVRFLDWHG$
VXSSRUWLQJHOHPHQWVRUVXEVWUXFWXUHV$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(48,9$/(176(,60,&/2$'0(7+2'$
$
'LVSODFHPHQW&RPSRQHQWVDQG$SSOLFDWLRQ3RLQWVRI6HLVPLF/RDGV$
$
$±$:KHUH$IORRUV$DFW$DV$ULJLG$KRUL]RQWDO$GLDSKUDJPV$WZR$ODWHUDO$GLVSODFHPHQW$
FRPSRQHQWVDQGWKHURWDWLRQDURXQGWKHYHUWLFDOD[LVVKDOOEHWDNHQLQWRDFFRXQWDWHDFKIORRU$
DV$LQGHSHQGHQW$VWDWLF$GLVSODFHPHQW$FRPSRQHQWV$ W$HDFK$IORRU$HTXLYDOHQW$VHLVPLF$ORDGV$
GHWHUPLQHGLQDFFRUGDQFHZLWK VKDOOEHDSSOLHGWRWKHIORRUPDVVFHQWUHDVZHOODVWRWKH$
SRLQWVGHILQHGE\VKLIWLQJLWDQGRIWKHIORRUOHQJWKLQWKHSHUSHQGLFXODUGLUHFWLRQWR$
WKHHDUWKTXDNHGLUHFWLRQFRQVLGHUHGLQRUGHUWRDFFRXQWIRUWKHDFFLGHQWDOHFFHQWULFLW\HI HFWV$
$
± :KHUH$IORRUV$GR$QRW$DFW$DV$ULJLG$KRUL]RQWDO$GLDSKUDJPV$VXIILFLHQW$QXPEHU$RI$
LQGHSHQGHQW VWDWLF GLVSODFHPHQW FRPSRQHQWV VKDOO EH FRQVLGHUHG WR DFFRXQW IRU WKH LQSODQH$
GHIRUPDWLRQRIIORRUV$
$
%DVH6KHDU$
$
7RWDOHTXLYDOHQWVHLVPLFORDGLHWKHEDVHVKHDU9ELQWKHHDUWKTXDNHGLUHFWLRQFRQVLGHUHG$
VKDOOEHFDOFXODWHGE\(T $
: +
$ )L 9IE ')I1$$1$ L L $ $
¦Z:N + N$
N $
$
$
$
§ KWL$·
$ 'L $
¨ ¸ $ $
© ¹Z
±,QEXLOGLQJVZLWKYHU\VWLIIUHLQIRUFHGFRQFUHWHSHULSKHUDOZDOOVDWWKHLUEDVHPHQWV$
HTXLYDOHQWVHLVPLFORDGVDFWLQJRQVWLIIEDVHPHQWVWRULHVDQGWKRVHDFWLQJRQUHODWLYHO\IOH[LEOH$
XSSHUVWRULHVVKDOOEHFDOFXODWHGVHSDUDWHO\DVJLYHQLQ D DQG E EHORZ6XFKORDGVVKDOOEH$
FRPELQHGIRUWKHDQDO\VLVRIWKHFRPSOHWHVWUXFWXUDOV\VWHP$
D ,Q GHWHUPLQLQJ WKH EDVH VKHDU DQG HTXLYDOHQW VWRUH\ VHLVPLF ORDGV DFWLQJ RQ UHODWLYHO\$
IOH[LEOHXSSHUVWRULHV&ODXVHV DQG VKDOOEHDSSOLHGZLWKVHLVPLFPDVVHVRIXSSHUI
VWRULHVRQO\WDNHQLQWRDFFRXQW)RXQGDWLRQWRSOHYHOFRQVLGHUHGLQWKHUHOHYDQWGHILQLWLRQVDQG$
H[SUHVVLRQV$VKDOO$EH$UHSODFHG$E\$WKH$JURXQG$IORRU$OHYHO$)LFWLWLRXV$ORDGV$XVHG$IRU$WKH$
FDOFXODWLRQRIWKHILUVWQDWXUDOYLEUDWLRQSHULRGLQDFFRUGDQFHZLWK VKDOODOVREHEDVHG$
RQVHLVPLFPDVVHVRIXSSHUVWRULHVRQO\$SSURSULDWHEHKDYLRXUIDFWRUTVKDOOEHVHOHFWHGIURP$
&KDSWHU RU &KDSWHU DV DSSURSULDWH EDVHG RQ WKH VWUXFWXUDO W\SH RI WKH XSSHU VWRULHVI
RQO\$
E ,QFDOFXODWLQJHTXLYDOHQWVHLVPLFORDGVDFWLQJRQWKHVWLIIEDVHPHQWVWRULHVVHLVPLFPDVVHV$
RI$EDVHPHQWV RQO\$VKDOO$EH$WDNHQ$LQWR$DFFRXQW$(TXLYDOHQW$VHLVPLF$ORDGV$DFWLQJ$RQ$HDFK$
EDVHPHQW$VWRUH\$VKDOO$EH$FDOFXODWHG$ZLWK$HODVWLF$VSHFWUDO$DFFHOHUDWLRQ$RI$6'6$WR$EH$
PXOWLSOLHGGLUHFWO\ZLWKWKHUHVSHFWLYHVWRUH\PDVVDQGWKHUHVXOWLQJHODVWLFORDGVVKDOOQRWEH$
UHGXFHG LHT5 $
F $,Q$WKH$DQDO\VLV$RI$WKH$FRPSOHWH$VWUXFWXUDO$V\VWHP$XQGHU$WKH$FRPELQHG$DFWLRQ$RI$WKH$
HTXLYDOHQWVHLVPLFORDGVDVGHILQHGLQ D DQG E DERYHLQWHUDFWLRQZLWKWKHVRLOVXUURXQGLQJ$
EDVHPHQWVWRULHVPD\EHFRQVLGHUHGZLWKDQDSSURSULDWHVRLOPRGHOLQJ$
G ,QSODQH VWUHQJWK RI JURXQG IORRU V\VWHP ZKLFK LV VXUURXQGHG E\ YHU\ VWLII EDVHPHQW$
ZDOOV DQG ORFDWHG LQ WKH WUDQVLWLRQ ]RQH ZLWK WKHXSSHU VWRULHV VKDOO EH FKHFNHG IRU LQWHUQDO$
IRUFHVREWDLQHGIURPWKHDQDO\VLVDFFRUGLQJWR F DERYH$
3UHGRPLQDQWSHULRG$
$
± 3UHGRPLQDQWQDWXUDOYLEUDWLRQSHULRGRIWKHEXLOGLQJLQWKHHDUWKTXDNHGLUHFWLRQ7$
PD\EHDSSUR[LPDWHO\HVWLPDWHGE\WKHIROORZLQJH[SUHVVLRQ$
$
$
§Z1$ $·
¨ L¦Z0 L G IL$
$
¸Z
$ 7 S ¨Z1$ ¸Z $ $
¨¨ ¦Z)IL G IL$¸¸
©ZL $ ¹Z
$
)LFWLWLRXVORDG)ILDFWLQJRQWKHL¶WKVWRUH\PD\EHREWDLQHGIURP(T E\VXEVWLWXWLQJDQ\$
YDOXH $RUH[DPSOHDXQLWYDOXH LQSODFHRI 9E')1 $
$
'LUHFWLRQDO&RPELQDWLRQ$
$
±7KHPD[LPXPYDOXHRIHDFKUHVSRQVHTXDQWLW\GXHWRWZRKRUL]RQWDOFRPSRQHQWVRI$
WKHHDUWKTXDNHPD\EHHVWLPDWHGE\WKHVTXDUHURRWRIWKHVXPRIWKHVTXDUHGYDOXHVRIWKH$
UHVSRQVHTXDQWLWLHVFDOFXODWHGGXHWRHDFKKRUL]RQWDOFRPSRQHQW$
$
±$VDQDOWHUQDWLYHWRWKHFRPELQDWLRQSURFHGXUHJLYHQE\(T PD\EH$
HPSOR\HG$
4I' 4I[$4\
$ $ $
4I'$ 4I[ 4\$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
08/7,02'(5(63216(63(&7580$1$/<6,60(7+2'$
$
,QWKLVPHWKRGPD[LPXPLQWHUQDOIRUFHVDQGGLVSODFHPHQWVDUHGHWHUPLQHGE\WKHVWDWLVWLFDO$
FRPELQDWLRQ RI PD[LPXP FRQWULEXWLRQV REWDLQHG LQ$ VXIILFLHQW QXPEHU RI QDWXUDO YLEUDWLRQ$
PRGHVWREHFRQVLGHUHG$
$
'\QDPLFGHJUHHVRIIUHHGRP$
$
± ,Q EXLOGLQJV ZKHUH IORRUV EHKDYH DV ULJLG KRUL]RQWDO GLDSKUDJPV WZR KRUL]RQWDO$
GHJUHHV$RI$IUHHGRP$LQ$SHUSHQGLFXODU$GLUHFWLRQV$DQG$D$URWDWLRQDO$GHJUHH$RI$IUHHGRP$ZLWK$
UHVSHFWWRWKHYHUWLFDOD[LVSDVVLQJWKURXJKPDVVFHQWUHVKDOOEHFRQVLGHUHGDWHDFKVWRUH\$W$
HDFKIORRUPRGDOVHLVPLFORDGVGHILQHGIRUWKRVHGHJUHHVRIIUHHGRPVKDOOEHDSSOLHGWRWKH$
IORRU PDVV FHQWUH DV ZHOO DV WR WKH SRLQWV GHILQHG E\ VKLIWLQJ LW DQG RI WKH IORRU$
OHQJWK LQ WKH SHUSHQGLFXODU GLUHFWLRQ WR WKH HDUWKTXDNH GLUHFWLRQ FRQVLGHUHG 7KH ODWWHU LV WR$
DFFRXQWIRUWKHDFFLGHQWDOHFFHQWULFLW\HI HFWV$
$
± ,Q EXLOGLQJV ZKHUH WRUVLRQDO LUUHJXODULW\ H[LVWV DQG IORRUV GR QRW EHKDYH DV ULJLG$
KRUL]RQWDOGLDSKUDJPVVXIILFLHQWQXPEHURIG\QDPLFGHJUHHVRIIUHHGRPVKDOOEHFRQVLGHUHG$
WRPRGHOLQSODQHGHIRUPDWLRQRIIORRUV$
$
0RGDOVHLVPLFORDGV$
$
± ,Q D W\SLFDO Q¶WK YLEUDWLRQ PRGH FRQVLGHUHG LQ WKH DQDO\VLV PRGDO VHLVPLF ORDGV$
DFWLQJ$RQ$WKH$ L¶WK$
VWRU\$OHYHO$DW$WKH$
PDVV$ FHQWUH$ RI$
WKH$IORRU$GLDSKJUDP$ LV$H[SUHVVHG$E\$
(TV $
)I[LQ$ 0 L$) [LQ$*Z
[Q$6 5 7IQ$$
$ )I\LQ$ 0IL$)Z
\LQ$*Z
[Q$6I 5 7IQ$ $ $
)TLQ$ 0 TL$) TLQ$*Z
[Q$6I 5$7Q $
ZKHUH$*Z[Q$ UHSUHVHQWV WKH SDUWLFLSDWLRQ IDFWRU RI WKH Q¶WK PRGH XQGHU DQ HDUWTXDNH JURXQG$
PRWLRQLQ[GLUHFWLRQ)RUEXLOGLQJVZLWKULJLGIORRUGLDSKUDJPV *Z [Q$LVGHILQHGDV$
/[Q
I$
$ *Z
[Q$ $ $ $
0IQ$
LQZKLFK/[QDQG 0 Q DUHDVH[SUHVVHGLQ$
$
± ,QEXLOGLQJVZLWKYHU\VWLIIUHLQIRUFHGFRQFUHWHSHULSKHUDOZDOOVDWWKHLUEDVHPHQWV$
XQOHVV D IXOO PRGDO DQDO\VLV RI WKH VWUXFWXUDO V\VWHP LV SHUIRUPHG PRGDO VHLVPLF ORDGV DV$
GHILQHG LQ DFWLQJ RQ VWLII EDVHPHQW VWRULHV DQG WKRVH DFWLQJ RQ UHODWLYHO\ IOH[LEOH$
XSSHUVWRULHVPD\EHFDOFXODWHGVHSDUDWHO\DVJLYHQLQ D DQG E EHORZ$
D ,Q FDOFXODWLQJ PRGDO VHLVPLF ORDGV DFWLQJ RQ UHODWLYHO\ IOH[LEOH XSSHU VWRULHVWKH ORZHVWI
YLEUDWLRQ PRGHV WKDW$ DUH$HIIHFWLYH LQ WKH$
XSSHU$ VWRULHV PD\ EH$ FRQVLGHUHG$ ZKLFK$FDQ EH$
DFKLHYHG E\ WDNLQJ LQWR DFFRXQW WKH VHLVPLF PDVVHV RI WKH XSSHU VWRULHV RQO\ ,Q WKLV FDVH$
DSSURSULDWHEHKDYLRXUIDFWRUTPXVWEHVHOHFWHGIURP&KDSWHURU&KDSWHUDVDSSURSULDWH$
EDVHGRQWKHVWUXFWXUDOW\SHRIWKHXSSHUVWRULHVRQO\$
E ,QGHWHUPLQLQJPRGDOVHLVPLFORDGVDFWLQJRQVWLIIEDVHPHQWVWRULHVWKHKLJKHVWYLEUDWLRQI
PRGHVWKDWDUHHIIHFWLYHLQWKHEDVHPHQWVPD\EHFRQVLGHUHGZKLFKFDQEHDFKLHYHGE\WDNLQJ$
$
$
LQWR DFFRXQW WKH VHLVPLF PDVVHV RI WKH EDVHPHQW VWRULHV RQO\ ,Q WKLV FDVH UHVXOWLQJ HODVWLF$
PRGDOORDGVVKRXOGQRWEHUHGXFHG LHT5 $
F 6LQFH YLEUDWLRQ PRGHV DIIHFWLQJ WKH VWLII EDVHPHQW VWRULHV DQG IOH[LEOH XSSHU VWRULHV DUH$
H[SHFWHGWREHIDUDSDUWWZRVHSDUDWHUHVSRQVHVSHFWUXPDQDO\VHVPD\EHSHUIRUPHGEDVHGRQ$
PRGDOVHLVPLFORDGVGHILQHGLQ D DQG E DERYH,QHDFKRIWKRVHDQDO\VHVLQWHUDFWLRQZLWK$
WKH VRLO VXUURXQGLQJ EDVHPHQW VWRULHV PD\ EH FRQVLGHUHG ZLWK DQ DSSURSULDWH VRLO PRGHOLQJ$
7KHUHVXOWVRIVXFKDQDO\VHVPD\EHGLUHFWO\VXSHULPSRVHG$
G ,QSODQH VWUHQJWK RI JURXQG IORRU V\VWHP ZKLFK LV VXUURXQGHG E\ YHU\ VWLII EDVHPHQW$
ZDOOV DQG ORFDWHG LQ WKH WUDQVLWLRQ ]RQH ZLWK WKHXSSHU VWRULHV VKDOO EH FKHFNHG IRU LQWHUQDO$
IRUFHVREWDLQHGIURPWKHDQDO\VLVH[SODLQHGLQ F DERYH$
$
1XPEHURI9LEUDWLRQ0RGHV$
$
6XI LFLHQW QXPEHU RI YLEUDWLRQ PRGHV 16 WR EH WDNHQ LQWR DFFRXQW LQ WKH DQDO\VLV VKDOO EH$
GHWHUPLQHGWRWKHFULWHULRQWKDWWKHVXPRIHIIHFWLYHSDUWLFLSDWLQJPDVVHVFDOFXODWHGIRUHDFK$
PRGHLQHDFKRIWKHJLYHQ[DQG\ SHUSHQGLFXODUODWHUDOHDUWKTXDNHGLUHFWLRQVVKDOOLQQRFDVH$
EHOHVVWKDQRIWKHWRWDOEXLOGLQJPDVV$
16$ /$
16$ 1$
¦Z0 [Q$ $
¦Z [Q$
$
tZ ¦Z0 L$
Q $ Q $ 0IQ$ L $
$ $
$ $
16$ 16$ /\Q$ 1$
¦Z$ $tZ ¦Z0 L$
¦Z0 \Q$ $
Q $ Q $ 0IQ$ L $
$
$
9E[$
4I6[$ $ 4&[$
9E&[$
$ $
9E\$
4I6\$ $ 4&\$
9E&\$
,QWKHFDVHZKHUH9E&[RU9E&\LVQRWOHVVWKDQRIWKHFRUUHVSRQGLQJEDVHVKHDU9E[RU9E\$
WKHQ46[ 4&[RU46\ 4&\VKDOOEHXVHGLQ$
$
'LUHFWLRQDO&RPELQDWLRQ$
$
'LUHFWLRQDO FRPELQDWLRQ SURFHGXUHV JLYHQ LQ IRU (TXLYDOHQW 6HLVPLF /RDG 0HWKRG DUH$
DSSOLFDEOHZLWK4[DQG4\UHSODFHGE\46[DQG46\UHVSHFWLYHO\$
$
$
$
$
5(63216(+,6725<$1$/<6,60(7+2'$
$
/LQHDU5HVSRQVH+LVWRU\$QDO\VLV$
$
/LQHDU UHVSRQVH KLVWRU\ DQDO\VLVEDVHG RQPRGHVXSHUSRVLWLRQSURFHGXUH PD\ EHSHUIRUPHG$
LQOLHXRIPXOWLPRGHUHVSRQVHVSHFWUXPDQDO\VLVGHVFULEHGLQ$
$
± 7KH$ DQDO\VLV$VKDOO EH EDVHG$RQ$D$
VHW$RI$HDUWKTXDNHV$ FRPSULVLQJ WKUHH$ RU$VHYHQ$
HDUWKTXDNHUHFRUGVZLWKVLPXOWDQHRXVO\DFWLQJWZRKRUL]RQWDOFRPSRQHQWVWREHVHOHFWHGDQG$
VFDOHGDFFRUGLQJWR$
$
±6XIILFLHQWQXPEHURIYLEUDWLRQPRGHVVKDOOEHXVHGDVGHVFULEHGLQ$
$
± ,Q HDFK DQDO\VLV OLQHDU UHVSRQVH KLVWRULHV RI GHVLJQ TXDQWLWLHV REWDLQHG IRU HDFK$
W\SLFDO$PRGH$Q $VKDOO$EH$UHGXFHG$E\$WKH$FRUUHVSRQGLQJ$6HLVPLF$/RDG$5HGXFWLRQ$)DFWRU$
T5$7IQ$ JLYHQE\(TV EDVHGRQHODVWLFVSHFWUXPFRUQHUSHULRG76
$
± ,IWKUHHJURXQGPRWLRQVDUHXVHGLQWKHDQDO\VLVWKHPD[LPDRIWKHUHVXOWVVKDOOEH$
FRQVLGHUHG IRU GHVLJQ ,I DW OHDVW VHYHQ JURXQG$PRWLRQV DUH XVHG WKH PHDQ YDOXHV RI WKH$
UHVXOWVPD\EHFRQVLGHUHGIRUGHVLJQ$
$
1RQOLQHDU5HVSRQVH+LVWRU\$QDO\VLV$
$
1RQOLQHDU$UHVSRQVH$KLVWRU\$DQDO\VLV$PD\$EH$SHUIRUPHG$E\$GLUHFW$LQWHJUDWLRQ$RI$QRQOLQHDU$
HTXDWLRQV RI PRWLRQ LQ OLHX RI PXOWLPRGH UHVSRQVH VSHFWUXP DQDO\VLV GHVFULEHG LQ DQG$
OLQHDU UHVSRQVH KLVWRU\ DQDO\VLV GHVFULEHG LQ 1RQOLQHDU DQDO\VLV UHTXLUHPHQWV VKDOOEH$
WKHVDPHDVWKRVHJLYHQLQ&KDSWHU$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
6$)(7<9(5,),&$7,21$
$
6WUHQJWKYHULILFDWLRQ$
$
7KHIROORZLQJUHODWLRQVKDOOEHVDWLVILHGIRUDOOVWUXFWXUDOHOHPHQWVLQFOXGLQJFRQQHFWLRQVDQG$
WKHUHOHYDQWQRQVWUXFWXUDOHOHPHQWV$
$ (G$dZ5G $ $
ZKHUH (G LV WKH GHVLJQ YDOXH RI WKH DFWLRQ HIIHFW GXH WR ORDG FRPELQDWLRQV GHILQHG LQ $
LQFOXGLQJLIQHFHVVDU\VHFRQGRUGHUHIIHFWVGHILQHGLQDVZHOODVGXHWRFDSDFLW\GHVLJQ$
UXOHV DV GHVFULEHG LQ &KDSWHUV DQG 5G LV WKH FRUUHVSRQGLQJ GHVLJQ UHVLVWDQFH RI WKH$
HOHPHQWFDOFXODWHGLQDFFRUGDQFHZLWKWKHUXOHVVSHFLILFWRWKHPDWHULDOXVHGFRQVLGHULQJWKH$
UHTXLUHPHQWVRI&KDSWHUVDQG$
$
/RDGFRPELQDWLRQVIRUVHLVPLFGHVLJQ$
$
7KHORDGFRPELQDWLRQVJLYHQLQ(T VKDOOEHXVHGWRGHILQHWKHGHVLJQYDOXHVRIDFWLRQ$
HIIHFWV/LYHORDGSDUWLFLSDWLRQIDFWRU Q LVJLYHQLQ7DEOH$
7DEOH±/LYHORDGSDUWLFLSDWLRQIDFWRU Q $
/RDGLQJDUHDV$ QI$
'RPHVWLFUHVLGHQWLDODQGRIILFHDUHDV$ $
6KRSSLQJDQGFRQJUHJDWLRQDUHDV$ $
6WRUDJHDUHDV$ $
7UDIILFDUHDV YHKLFOHZHLJKWdN1 $ $
7UDIILFDUHDV N1YHKLFOHZHLJKWdN1 $ $
5RRIDUHDV$ $
$
6HFRQG2UGHU(IIHFWV$
$
8QOHVV D PRUH UHILQHG DQDO\VLV FRQVLGHULQJ WKH QRQOLQHDU EHKDYLRXU RI VWUXFWXUDO V\VWHP LV$
SHUIRUPHGVHFRQGRUGHUHIIHFWVPD\EHWDNHQLQWRDFFRXQWLQDFFRUGDQFHZLWK$
±,QWKHFDVHZKHUH6HFRQG2UGHU(I HFW,QGLFDWRUTLVDWLVILHVWKHFRQGLWLRQJLYHQE\$
(T IRUWKHHDUWKTXDNHGLUHFWLRQFRQVLGHUHGDWHDFKVWRUH\VHFRQGRUGHUHIIHFWVVKDOOEH$
HYDOXDWHG LQ DFFRUGDQFH ZLWK WKH FXUUHQWO\ HQIRUFHG VSHFLILFDWLRQV RI UHLQIRUFHG FRQFUHWH RU$
VWUXFWXUDOVWHHOGHVLJQ$
§Z1$ ·
'Z$
L$DYJ$¨ ¦ :N$¸
$ TL$ $ © N L$ ¹ dZ $ $
9L K L$
$
$
$
$
'$0$*(/,0,7$7,21$
$
/LPLWDWLRQRIVWRU\GULIWV$
$
± 7KHUHGXFHGVWRUH\GUL W'MLRIDQ\FROXPQRUVWUXFWXUDOZDOOVKDOOEHGHWHUPLQHG$
E\(T DVWKHGLIIHUHQFHRIGLVSODFHPHQWVEHWZHHQWKHWZRFRQVHFXWLYHVWRULHV$
$ ' ML$ G ML$ G M L $$ $
ZKHUH GML DQG GM L UHSUHVHQW ODWHUDO GLVSODFHPHQWV REWDLQHG IURP WKH DQDO\VLV DW WKH M¶WK$
FROXPQRUVWUXFWXUDOZDOODWVWRULHVLDQG L± XQGHUUHGXFHGVHLVPLFORDGV7KHPLQLPXP$
HTXLYDOHQWVHLVPLFORDGFRQGLWLRQGHILQHGE\ (T DQGWKHVFDOLQJSURFHGXUHGHVFULEHGLQ$
PD\QRWEHFRQVLGHUHGLQWKHFDOFXODWLRQRIGMLDQG'ML$
± :KHQ PXOWLPRGH UHVSRQVH VSHFWUXP DQDO\VLV GHVFULEHG LQ RU OLQHDU UHVSRQVH$
KLVWRU\DQDO\VLVGHVFULEHGLQLVXVHG WKHHI HFWLYHVWRUH\GUL WįMLRIWKHM¶WKFROXPQRU$
VWUXFWXUDOZDOODWWKHL¶WKVWRUH\RIDEXLOGLQJVKDOOEHREWDLQHGLQHDFKGLUHFWLRQE\(T $
T
$ GZ
ML$ $ 'Z$
ML$ $
,I
±7KHPD[LPXPYDOXHRIHIIHFWLYHVWRUH\GULIWV įL PD[REWDLQHGLQHDFKGLUHFWLRQIRU$
FROXPQVRUVWUXFWXUDOZDOOVRIDJLYHQL¶WKVWRUH\RIDEXLOGLQJVKDOOVDWLVI\WKHFRQGLWLRQJLYHQ$
E\(T $
GZ
$ L$PD[$
$dZ$
$
$ $
KL$
7KLV OLPLW PD\ EH H[FHHGHG E\ LQ VLQJOH VWRUH\ IUDPHV ZKHUH VHLVPLF ORDGV DUH IXOO\$
UHVLVWHGE\VWHHOIUDPHVZLWKMRLQWVFDSDEOHRIWUDQVIHUULQJF\FOLFPRPHQWV$
$
± 7KH$OLPLW$JLYHQ$E\$(T $PD\$EH$H[FHHGHG$E\$$LI$QRQOLQHDU$DQDO\VLV$
SURFHGXUH LV SHUIRUPHG LQ DFFRUGDQFH ZLWK )RU QRQOLQHDU DQDO\VLV WKH GLVSODFHPHQWV$
GHWHUPLQHGDUHWKRVHREWDLQHGGLUHFWO\IURPWKHDQDO\VLVZLWKRXWIXUWKHUPRGLILFDWLRQ$
$
± ,QWKHFDVHZKHUHWKHFRQGLWLRQJLYHQLQ RU ZKLFKHYHUDSSOLFDEOHLV$
QRW$VDWLVILHG$DW$DQ\$VWRUH\$RI$WKH$EXLOGLQJ$WKH$VHLVPLF$DQDO\VLV$VKDOO$EH$UHSHDWHG$ZLWK$
LQFUHDVHGVWLIIQHVVRIWKHVWUXFWXUDOV\VWHP$
$
6HLVPLF-RLQWV$
$
([FOXGLQJWKHHIIHFWVRIGLIIHUHQWLDOVHWWOHPHQWVDQGURWDWLRQVRIIRXQGDWLRQVDQGWKHHIIHFWVRI$
WHPSHUDWXUHFKDQJHVL]HVRIJDSVWREHUHWDLQHGLQWKHVHLVPLFMRLQWVEHWZHHQEXLOGLQJEORFNV$
RU EHWZHHQ WKH ROG DQG QHZO\ FRQVWUXFWHG EXLOGLQJVVKDOO EH GHWHUPLQHG LQ DFFRUGDQFH ZLWK$
WKHIROORZLQJFRQGLWLRQV$
$
±6L]HVRIJDSVWREHSURYLGHGVKDOOQRWEHOHVVWKDQWKHVTXDUHURRWRIVXPRIVTXDUHV$
RI DYHUDJH VWRUH\ GLVSODFHPHQWV RI WKH DGMDFHQW EXLOGLQJV RU EXLOGLQJEORFNV PXOWLSOLHG E\$
WKH FRHIILFLHQW D* VSHFLILHG EHORZ 6WRUH\ GLVSODFHPHQWV WR EH FRQVLGHUHG DUH WKH DYHUDJH$
YDOXHV RI UHGXFHG GLVSODFHPHQWVGML FDOFXODWHG DW WKH FROXPQ RU VWUXFWXUDO ZDOO MRLQWV RI L¶WK$
VWRUH\,QWKHFDVHVZKHUHWKHVHLVPLFDQDO\VLVLVQRWSHUIRUPHGIRUWKHH[LVWLQJROGEXLOGLQJ$
$
$
WKH VWRUH\ GLVSODFHPHQWV VKDOO QRW EH DVVXPHG WR EH OHVV WKDQ WKRVH REWDLQHG IRU WKH QHZ$
EXLOGLQJDWWKHVDPHVWRULHV$
D D* T, VKDOOEHWDNHQLIDOOIORRUOHYHOVRIDGMDFHQWEXLOGLQJVRUEXLOGLQJEORFNVDUH$
WKHVDPH$
E D* T, VKDOOEHWDNHQLIDQ\RIWKHIORRUOHYHOVRIDGMDFHQWEXLOGLQJVRUEXLOGLQJEORFNV$
DUHQRWWKHVDPH$
$
± 6HLVPLF MRLQWV VKDOO EH DUUDQJHG WR DOORZ WKH LQGHSHQGHQW PRYHPHQW RI EXLOGLQJ$
EORFNVLQDOOHDUWKTXDNHGLUHFWLRQV$
$
$
$
$
$1$/<6,65(48,5(0(176)251216758&785$/6<67(06$
$
±$QDO\VLVUHTXLUHPHQWVIRUQRQVWUXFWXUDOHOHPHQWVLQORZWRPHGLXPULVHEXLOGLQJVDUH$
JLYHQ LQ WKH IROORZLQJ SDUDJUDSKV 7KH UHOHYDQW UHTXLUHPHQWV IRU WDOO EXLOGLQJV DUH JLYHQ LQ$
$
$
± (TXLYDOHQW VHLVPLF ORDGV WR EH DSSOLHG WR VWUXFWXUDO DSSHQGDJHV VXFK DV EDOFRQLHV$
SDUDSHWVFKLPQH\VHWFDQGWRDOODUFKLWHFWXUDOHOHPHQWVVXFKDVIDoDGHDQGSDUWLWLRQSDQHOV$
HWFDVZHOODVWKHVHLVPLFORDGVWREHXVHGIRUWKHFRQQHFWLRQVRIPHFKDQLFDODQGHOHFWULFDO$
HTXLSPHQWWRWKHVWUXFWXUDOV\VWHPHOHPHQWVDUHJLYHQE\(T $
§Z +I ·Z
$ H$ 66' , H PH$¨ $ L$¸ $ $
©Z + 1$¹Z
6HLVPLF ORDG VKDOO EH DSSOLHG KRUL]RQWDOO\ WR WKH PDVV FHQWUH RI WKH HOHPHQW FRQFHUQHG LQ D$
GLUHFWLRQ WR UHVXOW LQ PRVW XQIDYRXUDEOH LQWHUQDO IRUFHV 7KH VHLVPLF ORDGV WR EH DSSOLHG WR$
QRQYHUWLFDOHOHPHQWVVKDOOEHKDOIWKHHTXLYDOHQWVHLVPLFORDGFDOFXODWHGE\(T $
$
±)RUWKHIROORZLQJQRQVWUXFWXUDOHOHPHQWVWKHWKH(OHPHQW,PSRUWDQFH)DFWRU ,H VKDOO$
QRWEHOHVVWKDQ$
D $QFKRUDJHHOHPHQWVRIPDFKLQHU\DQGHTXLSPHQWUHTXLUHGIRUOLIHVDIHW\V\VWHPV$
E 7DQNVDQGYHVVHOVFRQWDLQLQJWR[LFRUH[SORVLYHVXEVWDQFHVFRQVLGHUHGWREHKD]DUGRXVWR$
WKHVDIHW\RIWKHJHQHUDOSXEOLF$
$
,QDOORWKHUFDVHVWKH(OHPHQW,PSRUWDQFH)DFWRU,HPD\EHDVVXPHGWREHHTXDOWRXQLW\$
$
±,QWKHFDVHZKHUHWKHVXPRIPHFKDQLFDORUHOHFWULFDOHTXLSPHQWPDVVHVDVGHQRWHGE\$
PHLQ(T H[FHHGVPLDWDQ\L¶WKVWRUH\HTXLSPHQWPDVVHVDQGVWLIIQHVVSURSHUWLHVRI$
WKHLUFRQQHFWLRQVWRWKHEXLOGLQJVKDOOEHWDNHQLQWRDFFRXQWLQWKHHDUWKTXDNHDQDO\VLVRIWKH$
EXLOGLQJVWUXFWXUDOV\VWHP$
$
±,QWKHFDVHZKHUH$ORRUDFFHOHUDWLRQVSHFWUXPLVGHWHUPLQHGE\DSSURSULDWHPHWKRGVWR$
GHILQHWKHSHDNDFFHOHUDWLRQDWWKHIORRUZKHUHPHFKDQLFDORUHOHFWULFDOHTXLSPHQWLVORFDWHG$
(T PD\QRWEHDSSOLHG$
$
±7ZLFHWKHVHLVPLFORDGFDOFXODWHGE\(T RUGHWHUPLQHGDFFRUGLQJWRVKDOO$
EH FRQVLGHUHG IRU ILUH H[WLQJXLVKLQJ V\VWHPV HPHUJHQF\$
HOHFWULFDO V\VWHPV DV$
ZHOO DV IRU$
HTXLSPHQWVFRQQHFWLQJWRLQILOOZDOOVDQGIRUWKHLUFRQQHFWLRQV$
$
$
$
$
$
$
$
$
$
$
$
$
&+$37(5$
6(,60,&'(6,*15(48,5(0(176$
)255(,1)25&('&21&5(7(%8,/',1*6$
$
6&23($1''(6,*1&21&(376$
$
6FRSH$
$
$±$7KLV$FKDSWHU DSSOLHV$WR$WKH$VHLVPLF$GHVLJQ$RI$HOHPHQWV$RI$UHLQIRUFHG$FRQFUHWH$
EXLOGLQJV$
$
±7KHUXOHVJLYHQLQWKLVFKDSWHUDUHDGGLWLRQDOWRWKRVHJLYHQLQ(1$
$
'HVLJQ&RQFHSWV$
$
$±$'HVLJQ$RI$HDUWKTXDNH$UHVLVWDQW$UHLQIRUFHG$FRQFUHWH$EXLOGLQJV$VKDOO$SURYLGH$WKH$
VWUXFWXUH ZLWK DQ DGHTXDWH HQHUJ\ GLVVLSDWLRQ FDSDFLW\ ZLWKRXW VXEVWDQWLDO UHGXFWLRQ RI LWV$
RYHUDOOUHVLVWDQFHDJDLQVWKRUL]RQWDODQGYHUWLFDOORDGLQJ$GHTXDWHUHVLVWDQFHRIDOOVWUXFWXUDO$
HOHPHQWVVKDOOEHSURYLGHGDQGQRQOLQHDUGHIRUPDWLRQGHPDQGVLQFULWLFDOUHJLRQVVKRXOGEH$
FRPSDWLEOHZLWKWKHRYHUDOOGXFWLOLW\DVVXPHGLQFDOFXODWLRQV$
$
± 5HLQIRUFHG FRQFUHWH EXLOGLQJV PD\ DOWHUQDWLYHO\ EH GHVLJQHG IRU ORZ GLVVLSDWLRQ$
FDSDFLW\ DQG ORZ GXFWLOLW\ E\ DSSO\LQJ RQO\ WKH UXOHV RI (1 IRU WKH VHLVPLF$
GHVLJQVLWXDWLRQDQGQHJOHFWLQJWKHVSHFLILFSURYLVLRQVJLYHQLQWKLVFKDSWHU7KHFODVVRIVXFK$
EXLOGLQJVDUHLGHQWLILHGDV/RZ'XFWLOLW\&ODVV '&/ $
$
± 5HLQIRUFHG FRQFUHWH EXLOGLQJV RWKHU WKDQ WKRVH WR ZKLFK DSSOLHV VKDOO EH$
GHVLJQHG WR SURYLGH$ HQHUJ\ GLVVLSDWLRQ FDSDFLW\ DQG$ DQ RYHUDOO GXFWLOH EHKDYLRXU 2YHUDOO$
GXFWLOHEHKDYLRXULVHQVXUHGLIWKHGXFWLOLW\ GHPDQGLQYROYHV JOREDOO\DODUJHYROXPHRIWKH$
VWUXFWXUH$ VSUHDG WR GLIIHUHQW$HOHPHQWV$ DQG ORFDWLRQV$ RI$DOO LWV$
VWRUH\V 7R WKLV$
HQG GXFWLOH$
PRGHVRIIDLOXUH HJIOH[XUH VKRXOGSUHFHGHEULWWOHIDLOXUHPRGHV HJVKHDU ZLWKVXIILFLHQW$
UHOLDELOLW\ 7KH FODVV RI VXFK EXLOGLQJV DUH LGHQWLILHG DV 1RUPDO 'XFWLOLW\ &ODVV '&1 IRU$
ZKLFKUHLQIRUFHGFRQFUHWHVHLVPLFGHVLJQUHTXLUHPHQWVDUHJLYHQLQWKHUHPDLQGHURI&KDSWHU$
$
$
± 8QOHVV D PRUH DFFXUDWH DQDO\VLV RI WKH FUDFNHG HOHPHQWV LV SHUIRUPHG WKH HODVWLF$
IOH[XUDO DQG VKHDU VWLIIQHVV SURSHUWLHV RI UHLQIRUFHG FRQFUHWH HOHPHQWV PD\ EH WDNHQ WR EH$
HTXDOWRRQHKDOIRIWKHFRUUHVSRQGLQJVWLIIQHVVRIWKHXQFUDFNHGHOHPHQWV$
$
6WUXFWXUDOW\SHVDQG%HKDYLRXU)DFWRUV$
$
±5HLQIRUFHGFRQFUHWHEXLOGLQJVDUHFODVVLILHGZLWKUHVSHFWWRVWUXFWXUDOW\SHVDQGWKHLU$
FRPELQDWLRQVDVIROORZV$
D 0RPHQWUHVLVWLQJI UDPH V\VWHP LV GHILQHG DV D VWUXFWXUDO V\VWHP FRPSRVHG RI PRPHQW$
UHVLVWLQJIUDPHVRQO\$
E &RXSOHG VWUXFWXUDO ZDOO V\VWHP LV GHILQHG DV D VWUXFWXUDO V\VWHP FRPSRVHG RI FRXSOHG$
VWUXFWXUDO$ZDOOV$RQO\$&RXSOHG$VWUXFWXUDO$ZDOOV$DUH$PDGH$IURP$LVRODWHG$VWUXFWXUDO$ZDOOV$
FRQQHFWHGZLWKUHODWLYHO\VWLIIFRXSOLQJEHDPVVXFKWKDWEDVHRYHUWXUQLQJPRPHQWVRILVRODWHG$
ZDOOVDUHUHGXFHGE\DWOHDVWXQGHUWKHVDPHODWHUDOORDGV$
$
$
F 8QFRXSOHGVWUXFWXUDOZDOOV\VWHPLVGHILQHGDVDVWUXFWXUDOV\VWHPFRPSRVHGRIXQFRXSOHG$
LVRODWHG VWUXFWXUDOZDOOVRQO\$
G )UDPHGRPLQDQW GXDO V\VWHP LV GHILQHG$
DV$
D$
VWUXFWXUDO$
V\VWHP$ FRPSRVHG$ RI$
PRPHQW$
UHVLVWLQJ$IUDPHV$ZKLFK$UHVLVW$PRUH$WKDQ$$RI$WKH$WRWDO$FDOFXODWHG$EDVH$VKHDU$LQ$
FRPELQDWLRQZLWKFRXSOHGRUXQFRXSOHGZDOOV$
H :DOOGRPLQDQWGXDOV\VWHP FRXSOHGZDOOV LVGHILQHGDVDVWUXFWXUDOV\VWHPFRPSRVHGRI$
FRXSOHG VWUXFWXUDO ZDOOV ZKLFK UHVLVW PRUH WKDQ RI WKH WRWDO FDOFXODWHG EDVH VKHDU LQ$
FRPELQDWLRQZLWKPRPHQWUHVLVWLQJIUDPHVDQGRUXQFRXSOHGZDOOV$
I :DOOGRPLQDQWGXDOV\VWHP XQFRXSOHGZDOOV LVGHILQHGDVDVWUXFWXUDOV\VWHPFRPSRVHG$
RI XQFRXSOHG LVRODWHG VWUXFWXUDO ZDOOV ZKLFK UHVLVW PRUH WKDQ RI WKH WRWDO FDOFXODWHG$
EDVHVKHDULQFRPELQDWLRQZLWKPRPHQWUHVLVWLQJIUDPHVDQGRUFRXSOHGZDOOV$
J ,QYHUWHGSHQGXOXPV\VWHPLQZKLFKRUPRUHRIWKHPDVVLVLQWKHXSSHUWKLUGRIWKH$
KHLJKWRIWKHVWUXFWXUHRULQZKLFKWKHGLVVLSDWLRQRIHQHUJ\WDNHVSODFHPDLQO\DWWKHEDVHRI$
D VLQJOH EXLOGLQJ HOHPHQW 2QHVWRUH\ IUDPHV ZLWK FROXPQ WRSV FRQQHFWHG DORQJ ERWK PDLQ$
GLUHFWLRQVRIWKHEXLOGLQJDQGZLWKWKHYDOXHRIWKHFROXPQQRUPDOL]HGD[LDOORDGOHVVWKDQ$
DUHH[FOXGHG$
$
±5HLQIRUFHGFRQFUHWHEXLOGLQJVPD\EHFODVVLILHGWRRQHW\SHRIVWUXFWXUDOV\VWHPLQ$
RQHKRUL]RQWDOGLUHFWLRQDQGWRDQRWKHULQWKHRWKHUGLUHFWLRQ$
$
± %HKDYLRXU IDFWRUV IRU DOO VWUXFWXUDO W\SHV RI /RZ 'XFWLOLW\ &ODVV '&/ VKDOO EH$
WDNHQDVT $
$
± %HKDYLRXU IDFWRUV IRU VWUXFWXUDO W\SHV RI 1RUPDO 'XFWLOLW\ &ODVV '&1 VKDOO EH$
WDNHQIURP7DEOH$
$
7DEOH±%HKDYLRXU)DFWRUV T IRUUHLQIRUFHGFRQFUHWHVWUXFWXUDOW\SHV$
6WUXFWXUDOW\SH$ TI
0RPHQWUHVLVWLQJIUDPHV\VWHP$ $
&RXSOHGVWUXFWXUDOZDOOV\VWHP$ $
8QFRXSOHGVWUXFWXUDOZDOOV\VWHP$ $
)UDPHGRPLQDQWGXDOV\VWHP$ $
:DOOGRPLQDQWGXDOV\VWHP FRXSOHGZDOOV $ $
:DOOGRPLQDQWGXDOV\VWHP XQFRXSOHGZDOOV $ $
,QYHUWHGSHQGXOXPV\VWHP$ $
$
$
'HVLJQDFWLRQV$
$
±:LWKWKHH[FHSWLRQRIVWUXFWXUDOZDOOVIRUZKLFKWKHVSHFLDOSURYLVLRQVRI DSSO\$
WKHGHVLJQYDOXHVRIEHQGLQJPRPHQWVDQGD[LDOIRUFHVVKDOOEHREWDLQHGIURPWKHDQDO\VLVRI$
WKHVWUXFWXUHIRUWKHVHLVPLFGHVLJQVLWXDWLRQLQDFFRUGDQFHZLWK$
$
$±$7KH$GHVLJQ$YDOXHV$RI$VKHDU$IRUFHV$RI$EHDPV$FROXPQV$DQG$VWUXFWXUDO$ZDOOV$DUH$
GHWHUPLQHGLQDFFRUGDQFHZLWKDQGUHVSHFWLYHO\$
$
$
&DSDFLW\'HVLJQ5XOHV$
$
± %ULWWOHIDLOXUHRURWKHUXQGHVLUDEOHIDLOXUHPHFKDQLVPV HJFRQFHQWUDWLRQRISODVWLF$
KLQJHV LQ FROXPQV RI$ D VLQJOH VWRUH\ RI D PXOWLVWRUH\ EXLOGLQJ VKHDU IDLOXUH RI VWUXFWXUDO$
HOHPHQWVIDLOXUHRIEHDPFROXPQMRLQWV\LHOGLQJRIIRXQGDWLRQVRURIDQ\HOHPHQWLQWHQGHGWR$
UHPDLQ HODVWLF VKDOO EH SUHYHQWHG E\ GHULYLQJ WKH GHVLJQ DFWLRQ HIIHFWV RI VHOHFWHG UHJLRQV$
IURP HTXLOLEULXP FRQGLWLRQV DVVXPLQJ WKDW SODVWLF KLQJHV ZLWK WKHLU SRVVLEOH RYHUVWUHQJWKV$
KDYHEHHQIRUPHGLQWKHLUDGMDFHQWDUHDV$
$
±$,Q$PRPHQW$UHVLVWLQJ$IUDPH$V\VWHPV$LQFOXGLQJ$IUDPHGRPLQDQW$GXDO$V\VWHPV$DV$
GHILQHGLQWKHIROORZLQJFRQGLWLRQVKRXOGEHVDWLVILHGDWDOOEHDPFROXPQMRLQWV$
$
$
0DWHULDOUHTXLUHPHQWV$
$
± ,QEXLOGLQJVRIERWK/RZ'XFWLOLW\&ODVV '&/ DQG1RUPDO'XFWLOLW\&ODVV '&1 $
UHLQIRUFLQJVWHHORIFODVV%RU&LQ(17DEOH&VKDOOEHXVHG$
$
± 7KHIROORZLQJPDWHULDOUHTXLUHPHQWVVKDOODSSO\IRUEXLOGLQJVRI1RPLQDO'XFWLOLW\I
&ODVV '&1 $
D &RQFUHWHRIDFODVVORZHUWKDQ&VKDOOQRWEHXVHG$
E 2QO\ULEEHGEDUVVKDOOEHXVHGDVUHLQIRUFLQJVWHHO$
F :HOGHG ZLUH PHVKHV PD\ EH XVHG LI WKH\ PHHW WKH UHTXLUHPHQWV LQ E DERYH DQG LQ$
$
$
/RFDOGXFWLOLW\UHTXLUHPHQWV$
$
±)RUWKHUHTXLUHGRYHUDOOGXFWLOLW\RIWKHVWUXFWXUHWREHDFKLHYHGWKHSRWHQWLDOUHJLRQV$
IRUSODVWLFKLQJHIRUPDWLRQWREHGHILQHGODWHUIRUHDFKW\SHRIEXLOGLQJHOHPHQWVKDOOSRVVHVV$
KLJKSODVWLFURWDWLRQDOFDSDFLWLHV$
$
±,QRUGHUWRVDWLVI\WKHUHTXLUHPHQWJLYHQLQWKHIROORZLQJFRQGLWLRQVVKDOOEH$
PHW$
D 7KHFXUYDWXUHGXFWLOLW\IDFWRUȝij RIDOOFULWLFDOUHJLRQVRIHOHPHQWVLQFOXGLQJFROXPQHQGV$
GHSHQGLQJRQWKHSRWHQWLDOIRUSODVWLFKLQJHIRUPDWLRQLQFROXPQV VKDOOEHDWOHDVWHTXDOWR$
WKHIROORZLQJYDOXHV$
§ZT$ ·Z76
PZ
MZ $̈ $̧Z $ d 7I d 76
$ ©Z ,I ¹Z7$ $ $
T
PM $ 76$ 7 $
,I
E $/RFDO$EXFNOLQJ$RI$FRPSUHVVHG$ VWHHO$ZLWKLQ SRWHQWLDO$SODVWLF$
KLQJH$UHJLRQV$ RI$
SULPDU\$
VHLVPLFHOHPHQWVVKDOOEHSUHYHQWHG5HOHYDQWDSSOLFDWLRQUXOHVDUHJLYHQ LQ DQG$
$
$
±$ SSURSULDWH FRQFUHWH DQG VWHHO TXDOLWLHV DUH$
DGRSWHG WR HQVXUH ORFDO GXFWLOLW\$
DV$
IROORZV$
D 6WHHO$XVHG$LQ$FULWLFDO$UHJLRQV$RI$VHLVPLF$HOHPHQWV$VKRXOG$KDYH$KLJK$XQLIRUP$SODVWLF$
HORQJDWLRQ VHH $
E 7HQVLOH VWUHQJWK WR \LHOG VWUHQJWK UDWLR RI WKH VWHHO XVHG LQ FULWLFDO UHJLRQV RI SULPDU\$
VHLVPLF HOHPHQWV VKRXOG EH VLJQLILFDQWO\ KLJKHU WKDQ XQLW\ 5HLQIRUFLQJ VWHHO FRQIRUPLQJ WR$
WKHUHTXLUHPHQWVRIPD\EHGHHPHGWRVDWLVI\WKLVUHTXLUHPHQW$
F &RQFUHWHXVHGLQSULPDU\VHLVPLFHOHPHQWVVKRXOGSRVVHVVDGHTXDWHFRPSUHVVLYHVWUHQJWK$
DQG D IUDFWXUH VWUDLQ ZKLFK H[FHHGV WKH VWUDLQ DW WKH PD[LPXP FRPSUHVVLYH VWUHQJWK E\ DQ$
DGHTXDWH$ PDUJLQ &RQFUHWH$ FRQIRUPLQJ WR WKH$ UHTXLUHPHQWV$ $
RI$ PD\ EH GHHPHG WR$
VDWLVI\WKHVHUHTXLUHPHQWV$
$
±,QFULWLFDOUHJLRQVRIHOHPHQWVZLWKORQJLWXGLQDOUHLQIRUFHPHQWRIVWHHOFODVV%LQ(1$
7DEOH & WKH FXUYDWXUH GXFWLOLW\ IDFWRU ȝij$VKRXOG EH DW OHDVW HTXDO WR $
WLPHVWKHYDOXHJLYHQE\(T $
$
$
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7(%($06$
$
*HRPHWULFDOUHTXLUHPHQWV$
$
± 7KH GLVWDQFH EHWZHHQ WKH FHQWURLGDO D[HV RI D EHDP DQG WKH FROXPQ LQWR ZKLFK LW$
IUDPHVVKDOOEHOLPLWHGWROHVVWKDQEF$
$
±:LGWKEZRIDEHDPVKDOOVDWLVI\WKHIROORZLQJH[SUHVVLRQ$
±7KHHIIHFWLYHIODQJHZLGWKEHIIPD\EHWDNHQDVIROORZV$
D ,Q EHDPV IUDPLQJ LQWR H[WHULRU FROXPQV WKH HIIHFWLYH IODQJH ZLGWK EHII $LV WDNHQ LQ WKH$
DEVHQFH RI D WUDQVYHUVH EHDP DV EHLQJ HTXDO WR WKH ZLGWK EF RI WKH FROXPQ RU LI WKHUH LV D$
WUDQVYHUVH EHDP RI VLPLODU GHSWK HTXDO WR WKLV ZLGWK LQFUHDVHG E\ KI RQ HDFK VLGH RI WKH$
EHDP$
E ,QEHDPVIUDPLQJLQWRLQWHULRUFROXPQVWKHDERYHZLGWKVPD\EHLQFUHDVHGE\KIRQHDFK$
VLGHRIWKHEHDP$
$
± )RU D EHDP VXSSRUWLQJ FROXPQV GLVFRQWLQXHG EHORZ WKH EHDP WKH IROORZLQJ UXOHV$
DSSO\$
D 7KHUHVKDOOEHQRHFFHQWULFLW\RIWKHFROXPQD[LVUHODWLYHWRWKDWRIWKHEHDP$
E 7KHEHDPVKDOOEHVXSSRUWHGE\DWOHDVWWZRGLUHFWVXSSRUWVVXFKDVZDOOVRUFROXPQV$
$
'HVLJQVKHDUIRUFHVRIEHDPV$
$
±,QEHDPVWKHGHVLJQVKHDUIRUFHVVKDOOEHGHWHUPLQHGLQDFFRUGDQFHZLWKWKHFDSDFLW\$
GHVLJQUXOHRQWKHEDVLVRIWKHHTXLOLEULXPRIWKHEHDPXQGHUD WKHWUDQVYHUVHORDGDFWLQJRQ$
LW LQ WKH VHLVPLF GHVLJQ VLWXDWLRQ DQG E HQG PRPHQWV 0LG$ZLWK L GHQRWLQJ WKH HQG$
VHFWLRQV RI WKH EHDP $FRUUHVSRQGLQJ WR SODVWLF KLQJH IRUPDWLRQ IRU SRVLWLYH DQG QHJDWLYH$
GLUHFWLRQVRIVHLVPLFORDGLQJ$
0I Z0
$ 9I(G$ 9I(G*$$ G$ G$$ $
OFO$
7KHSODVWLFKLQJHVVKRXOGEHWDNHQWRIRUPDWWKHHQGVRIWKHEHDPVRU LIWKH\IRUPWKHUHILUVW $
LQWKHYHUWLFDOHOHPHQWVFRQQHFWHGWRWKHMRLQWVLQWRZKLFKWKHEHDPHQGVIUDPH$
$
±(QGPRPHQWV0LGPD\EHGHWHUPLQHGDVIROORZV$
§ ¦0 ·
$ 0 LG$ 0 5EL$PLQ ¨ $ 5F$¸ $ $
©Z ¦ 0 5E$¹Z
7KH YDOXH RI$¦ 0 5F$ VKDOO EH FRPSDWLEOH ZLWK WKH WKH FROXPQ D[LDO IRUFH V LQ WKH VHLVPLF$
GHVLJQVLWXDWLRQIRUWKHFRQVLGHUHGVHQVHRIWKHVHLVPLFDFWLRQ$
$
$
$
±$WDEHDPHQGZKHUHWKHEHDPLVVXSSRUWHGLQGLUHFWO\E\DQRWKHUEHDPLQVWHDGRI$
IUDPLQJLQWRDYHUWLFDOPHPEHUWKHEHDPHQGPRPHQW0LG WKHUHPD\EHWDNHQDVEHLQJHTXDO$
WRWKHDFWLQJPRPHQWDWWKHEHDPHQGVHFWLRQLQWKHVHLVPLFGHVLJQVLWXDWLRQ$
$
$±$(QG$PRPHQWV$0LG$QHHG$QRW$H[FHHG$WKRVH$REWDLQHG$IURP$VHLVPLF$DQDO\VLV$ZLWK$
T, $
$
6HLVPLFGHWDLOLQJRIEHDPV$
$
±7KHUHJLRQVRIDEHDPXSWRDGLVWDQFHOFU KZ ZKHUHKZ GHQRWHVWKHGHSWKRIWKH$
EHDP IURPDQHQGFURVVVHFWLRQZKHUHWKHEHDPIUDPHVLQWRDEHDPFROXPQMRLQWDVZHOODV$
IURPERWKVLGHVRIDQ\RWKHUFURVVVHFWLRQOLDEOHWR\LHOGLQWKHVHLVPLFGHVLJQVLWXDWLRQVKDOO$
EHFRQVLGHUHGDVEHLQJFULWLFDOUHJLRQV$
$
± ,Q EHDPV VXSSRUWLQJ GLVFRQWLQXHG FXWRII YHUWLFDO HOHPHQWV WKH UHJLRQV XS WR D$
GLVWDQFHRIKZ RQHDFKVLGHRIWKHVXSSRUWHGYHUWLFDOHOHPHQWVKRXOGEHFRQVLGHUHGDVEHLQJ$
FULWLFDOUHJLRQV$
$
±7KHIROORZLQJFRQGLWLRQVVKDOOEHPHWDWERWKIODQJHVRIWKHEHDPDORQJWKHFULWLFDO$
UHJLRQV$
D $WWKHFRPSUHVVLRQ]RQHUHLQIRUFHPHQWRIQRWOHVVWKDQKDOIRIWKHUHLQIRUFHPHQWSURYLGHG$
DWWKHWHQVLRQ]RQHVKDOOEHSODFHGLQDGGLWLRQWRDQ\FRPSUHVVLRQUHLQIRUFHPHQWQHHGHGIRU$
WKHYHULILFDWLRQRIWKHEHDPLQWKHVHLVPLFGHVLJQVLWXDWLRQ$
E 7KHUHLQIRUFHPHQWUDWLRRIWKHWHQVLRQ]RQHȡVKDOOQRWH[FHHGDYDOXHȡPD[HTXDOWR$
$ FG$
$ UZ
PD[$ U $ $ $
PMZHV\G$ \G$
±:LWKLQWKHFULWLFDOUHJLRQVRIEHDPVKRRSVVDWLVI\LQJWKHIROORZLQJFRQGLWLRQVVKDOO$
EHSURYLGHG$
D 7KHGLDPHWHUGEZRIKRRSVVKDOOEHQRWOHVVWKDQPP$
E 7KHVSDFLQJVRIKRRSV LQPLOOLPHWUHV VKDOOQRWH[FHHG$
F 7KHILUVWKRRSVKDOOEHSODFHGQRWPRUHWKDQPPIURPWKHEHDPHQGVHFWLRQ$
$
$
$
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7($
&2/8016$
$
*HRPHWULFDOUHTXLUHPHQWV$
$
± 6KRUWHU GLPHQVLRQ RI FROXPQV ZLWK UHFWDQJXODU VHFWLRQ VKDOO QRW EH OHVV WKDQ $
PPDQGVHFWLRQDUHDVKDOOQRWEHOHVVWKDQPP'LDPHWHURIFLUFXODUFROXPQVVKDOOEH$
DW OHDVW PP 0LQLPXP FROXPQ GLPHQVLRQV PD\ EH UHGXFHG WR PP DQG PLQLPXP$
DUHD RI UHFWDQJXODU VHFWLRQ PD\ EH UHGXFHG WR PP LQ EXLOGLQJV ZLWK QR PRUH WKDQ$
WKUHHVWRULHVDERYHJURXQG$
$
±1RUPDOLVHGD[LDOIRUFHRIFROXPQȞGVKDOOVDWLVI\WKHFRQGLWLRQRIȞG$
$
'HVLJQVKHDUIRUFHVRIFROXPQV$
$
±,QFROXPQVWKHGHVLJQYDOXHVRIVKHDUIRUFHVVKDOOEHGHWHUPLQHGLQDFFRUGDQFHZLWK$
WKH FDSDFLW\ GHVLJQ UXOH RQ WKH EDVLV RI WKH HTXLOLEULXP RI WKH FROXPQ XQGHU HQG PRPHQWV$
0LG ZLWK L GHQRWLQJ WKH HQG VHFWLRQV RI WKH FROXPQ FRUUHVSRQGLQJ WR SODVWLF KLQJH$
IRUPDWLRQIRUSRVLWLYHDQGQHJDWLYHGLUHFWLRQVRIVHLVPLFORDGLQJ$
0I Z0
$ 9(G$ $ G$ G$$ $
OFO$
7KHSODVWLFKLQJHVVKRXOGEHWDNHQWRIRUPDWWKHHQGVRIWKHEHDPVFRQQHFWHGWRWKHMRLQWV$
LQWRZKLFKWKHFROXPQHQGIUDPHVRU LIWKH\IRUPWKHUHILUVW DWWKHHQGVRIWKHFROXPQV$
$
±(QGPRPHQWV0LGPD\EHGHWHUPLQHGDVIROORZV$
§ ¦0 ·
$ 0 LG$ 0 5FL$PLQ ¨ $ 5E$¸ $ $
© ¦ 0 5F$¹Z
$
$
± ,Q WKH DEVHQFH RI PRUH SUHFLVH LQIRUPDWLRQ WKH OHQJWK RI WKH FULWLFDO UHJLRQ OFU LQ$
PHWUHV PD\EHFRPSXWHGIURPWKHIROORZLQJH[SUHVVLRQ$
±,IOFKFWKHHQWLUHKHLJKWRIWKHFROXPQVKDOOEHFRQVLGHUHGDVEHLQJDFULWLFDO$
UHJLRQDQGVKDOOEHUHLQIRUFHGDFFRUGLQJO\$
$
± &RQILQHPHQW UHLQIRUFHPHQW IRU WKH FULWLFDO UHJLRQV VKDOO QRW EH OHVV WKDQ JLYHQ E\$
(T $
EIF $
$ DZZG$ P MZQ G$HZ
V\G$ Z $ $
EIR$
ZKHUHDLVWKHFRQILQHPHQWHIIHFWLYHQHVVIDFWRUHTXDOWRD DQDVZLWKFRPSRQHQWVDQDQG$
DVGHILQHGDVIROORZV$
D )RUUHFWDQJXODUFURVVVHFWLRQV$
§Z EL$
$ ·
§Z VI ·§Z VI ·Z
$ DZ
Q ¦ ¨Z ¸ DZ
V ¨ Z ¸¨ ¸Z$ $
ER KIR$¹
Q$©Z ©Z EIR$¹©Z KR$¹Z
ZKHUHQLVWKHWRWDOQXPEHURIORQJLWXGLQDOEDUVODWHUDOO\HQJDJHGE\KRRSVRUFURVVWLHVDQG$
ELLVWKHGLVWDQFHEHWZHHQFRQVHFXWLYHHQJDJHGEDUV$
E )RUFLUFXODUFURVVVHFWLRQVZLWKFLUFXODUKRRSV$
$
§Z VI ·
$ DZ
Q DZ
V$ ¨ Z ¸Z$ $
©Z 'R$¹Z
F )RUFLUFXODUFURVVVHFWLRQVZLWKVSLUDOKRRSV$
§Z VI ·Z
$ DZ
Q DZ
V ¨ ¸ $ $
©Z 'R$¹Z
±$PLQLPXPYDOXHRI$ZG VKDOOEHSURYLGHGZLWKLQWKHFULWLFDOUHJLRQDWWKH$
EDVHRIFROXPQV$
$
±:LWKLQWKHFULWLFDOUHJLRQVRIWKHSULPDU\VHLVPLFFROXPQVKRRSVDQGFURVVWLHVRI$
DWOHDVWPPLQGLDPHWHUVKDOOEHSURYLGHGZLWKWKHIROORZLQJFRQGLWLRQV$
D $7KH$VSDFLQJ$V$RI$WKH$KRRSV$LQ$PLOOLPHWUHV $VKDOO$QRW$H[FHHG$WKH$YDOXH$JLYHQ$E\$
(T $
$ V$dZPLQ ^ER G E/ ` $ $
E 7KHGLVWDQFHEHWZHHQFRQVHFXWLYHORQJLWXGLQDOEDUVHQJDJHGE\KRRSVRUFURVVWLHVVKDOO$
QRWH[FHHGPPWDNLQJLQWRDFFRXQW(1 $
$
6HLVPLFGHWDLOLQJRIEHDPFROXPQMRLQWV$
$
±7KHKRUL]RQWDOFRQILQHPHQWUHLQIRUFHPHQWLQMRLQWVRIEHDPVZLWKFROXPQVVKRXOG$
EHQRWOHVVWKDQWKDWVSHFLILHGLQ ± IRUWKHFULWLFDOUHJLRQVRIFROXPQVZLWKWKH$
H[FHSWLRQRIWKHFDVHOLVWHGLQWKHIROORZLQJSDUDJUDSK$
$
$
$
±,IEHDPVIUDPHLQWRDOOIRXUVLGHVRIWKHMRLQWDQGWKHLUZLGWKLVDWOHDVWWKUHHTXDUWHUV$
RI$WKH$SDUDOOHO$FURVVVHFWLRQDO$GLPHQVLRQ$RI$WKH$FROXPQ$WKH$VSDFLQJ$RI$WKH$KRUL]RQWDO$
FRQILQHPHQWUHLQIRUFHPHQWLQWKHMRLQWPD\EHLQFUHDVHGWRWZLFHWKDWVSHFLILHGLQEXW$
PD\QRWH[FHHGPP$
$
$± $W$OHDVW$RQH$LQWHUPHGLDWH$EHWZHHQ$FROXPQ$FRUQHU$EDUV $YHUWLFDO$EDU$VKDOO$EH$
SURYLGHGDWHDFKVLGHRIDMRLQWRISULPDU\VHLVPLFEHDPVDQGFROXPQV$
$
$
$
$
6(,60,&'(6,*15(48,5(0(176)255(,1)25&('&21&5(7($
6758&785$/:$//6$
$
*HRPHWULFDOUHTXLUHPHQWV$
$
±6WUXFWXUDOZDOOVDUHWKHYHUWLFDOHOHPHQWVRIWKHVWUXFWXUDOV\VWHPZKHUHWKHUDWLRRI$
OHQJWKWRWKLFNQHVVLQSODQLVHTXDOWRDWOHDVW$
$
± :HE WKLFNQHVV RI VWUXFWXUDO ZDOOV EZR LQ PHWUHV VKRXOG VDWLVI\ WKH IROORZLQJ$
H[SUHVVLRQ$
$ EIZR$tZPD[ ^$ $
KI
V ` $ $
$GGLWLRQDO$UHTXLUHPHQWV$DSSO\$ZLWK$UHVSHFW$WR$WKH$WKLFNQHVV$RI$WKH$FRQILQHG$ERXQGDU\$
HOHPHQWVRIZDOOVDVVSHFLILHGLQ$
$
±1RUPDOLVHGD[LDOIRUFHRIFROXPQȞGVKDOOVDWLVI\WKHFRQGLWLRQRIȞG$
$
$±$&RPSRVLWH$ZDOO$VHFWLRQV$FRQVLVWLQJ$RI$FRQQHFWHG$RU$LQWHUVHFWLQJ$UHFWDQJXODU$
VHJPHQWV /78,RUVLPLODUVHFWLRQV VKRXOGEHWDNHQDVLQWHJUDOXQLWVFRQVLVWLQJRID$
ZHE RU ZHEV SDUDOOHO RU DSSUR[LPDWHO\ SDUDOOHO WR WKH GLUHFWLRQ RI WKH DFWLQJ VHLVPLF VKHDU$
IRUFH DQG D IODQJH RU IODQJHV QRUPDO RU DSSUR[LPDWHO\ QRUPDO WR LW )RU WKH FDOFXODWLRQ RI$
IOH[XUDOUHVLVWDQFHWKHHIIHFWLYHIODQJHZLGWKRQHDFKVLGHRIDZHEVKRXOGEHWDNHQWRH[WHQG$
IURPWKHIDFHRIWKHZHEE\WKHPLQLPXPRI D WKHDFWXDOIODQJHZLGWK E RQHKDOIRIWKH$
GLVWDQFHWRDQDGMDFHQWZHERIWKHZDOODQG F RIWKHWRWDOKHLJKWRIWKHZDOODERYHWKH$
OHYHOFRQVLGHUHG$
$
±'LVFRQWLQXHGVWUXFWXUDOZDOOVVKDOOQRWUHO\IRUWKHLUVXSSRUWRQEHDPVRUVODEV$
$
'HVLJQEHQGLQJPRPHQWVDQGVKHDUIRUFHVRIVWUXFWXUDOZDOOV$
$
±,QZDOOVZLWK+Z ƐZ dGHVLJQEHQGLQJPRPHQWVDQGVKHDUVGHWHUPLQHGXVLQJ$
DSSURSULDWHTIDFWRUJLYHQLQ VKDOOEHDPSOLILHGE\DIDFWRURI> +Z ƐZ @+RZHYHU$
WKLVIDFWRUVKDOOH[FHHG$
$
±,QZDOOVVDWLVI\LQJWKHFRQGLWLRQ+Z ƐZ!GHVLJQEHQGLQJPRPHQWVDORQJWKH$
FULWLFDO ZDOO KHLJKW GHWHUPLQHG DFFRUGLQJ WR VKDOO EH WDNHQ DV D FRQVWDQW YDOXH EHLQJ$
HTXDO WR WKH EHQGLQJ PRPHQW FDOFXODWHG DW WKH ZDOO EDVH$ ERYH WKH FULWLFDO ZDOO KHLJKW D$
OLQHDUEHQGLQJPRPHQWGLDJUDPVKDOOEHDSSOLFDEOHZKLFKLVSDUDOOHOWRWKHOLQHFRQQHFWLQJWKH$
PRPHQWVFDOFXODWHGDWWKHEDVHDQGDWWKHWRSRIWKHZDOO$
$
± ,Q ZDOOV VDWLVI\LQJ WKH FRQGLWLRQ +Z ƐZ ! GHVLJQ VKHDU IRUFHV DW DQ\ FURVV$
VHFWLRQVKDOOEHFDOFXODWHGZLWK(T $
$ 9 (G$ $HZ9I(G$$ $
ZKHUHVKHDUDPSOLILFDWLRQIDFWRUHLVGHILQHGDV$
§Z0 ·Z T
$ HZ ¨Z 5G:$¸ dZ $ $
¨0 ¸
©Z (G:$¹Z ,
$
$
$
6HLVPLFGHWDLOLQJRIVWUXFWXUDOZDOOV$
$
±+HLJKWRIWKHFULWLFDOUHJLRQKFUDERYHWKHEDVHRIWKHZDOOLVJLYHQE\(T $
+RZHYHUWKHFULWLFDOZDOOKHLJKWKFUVKDOOVDWLVI\WKHIROORZLQJOLPLWDWLRQV$
KIFU$dZOIZ$
$ KFU$dZKV Q dZVWRUH\V $$ $
KFU$dZKV Q tZVWRUH\V $
±%RXQGDU\HOHPHQWVVKDOOEHDSSURSULDWHO\GHILQHGDWWKHH[WUHPLWLHVRIWKHZDOOFURVV$
VHFWLRQ7KHOHQJWKRIHDFKERXQGDU\HOHPHQWDORQJWKHFULWLFDOZDOOKHLJKWVKDOOQRWEHOHVV$
WKDQ RI WKH WRWDO SODQ OHQJWK RI WKH ZDOO QRU VKDOO LW EH OHVV WKDQ WZR WLPHV WKH ZDOO$
WKLFNQHVV7KHSODQOHQJWKRIHDFKERXQGDU\HOHPHQWDORQJWKHZDOOVHFWLRQDERYHWKHFULWLFDOI
ZDOOKHLJKWVKDOOQRWEHOHVVWKDQRIWKHWRWDOSODQOHQJWKRIWKHZDOOQRUVKDOOLWEHOHVV$
WKDQWKHZDOOWKLFNQHVV$
$
±7KHWKLFNQHVVEZRIWKHFRQILQHGSDUWVRIWKHZDOOVHFWLRQ ERXQGDU\HOHPHQWV VKDOO$
QRW EH OHVV WKDQ PP 0RUHRYHU LI WKH OHQJWK RI WKH FRQILQHG SDUW GRHV QRW H[FHHG WKH$
PD[LPXPRIEZDQGOZEZVKDOOQRWEHOHVVWKDQKV,IWKHOHQJWKRIWKHFRQILQHGSDUW$
H[FHHGVWKHPD[LPXPRIEZDQGOZEZVKDOOQRWEHOHVVWKDQKV$
$
$±$0HFKDQLFDO$YROXPHWULF$UDWLR$RI$WKH$UHTXLUHG$FRQILQLQJ$UHLQIRUFHPHQW$ ZG$LQ$
ERXQGDU\HOHPHQWVLVJLYHQE\(T $
EIF $
$ DZZG$ PZ
MZQ G$Z Y$ HZ
V\G$ Z $ $
EIR$
ZKHUH$YLVWKHPHFKDQLFDOUDWLRRIYHUWLFDOZHEUHLQIRUFHPHQW $Y ȡY$\GY$FG $
$
±7KHORQJLWXGLQDOUHLQIRUFHPHQWUDWLRLQWKHERXQGDU\HOHPHQWVVKDOOEHQRWOHVVWKDQ$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
5(48,5(0(176)25$1&+25$*($1'63/,&,1*2)5(%$56$
$
*HQHUDO$
$
± (1 6HFWLRQ IRU WKH GHWDLOLQJ RI UHLQIRUFHPHQW DSSOLHV ZLWK WKH$
DGGLWLRQDOUXOHVRIWKHIROORZLQJVXEFODXVHV$
$
± )RU KRRSV XVHG DV WUDQVYHUVH UHLQIRUFHPHQW LQ EHDPV FROXPQV RU ZDOOV FORVHG$
VWLUUXSVZLWKKRRNVDQGH[WHQVLRQVRIOHQJWKGEZVKDOOEHXVHG$
$
± 7KHDQFKRUDJHOHQJWKRIEHDPRUFROXPQEDUVDQFKRUHGZLWKLQEHDPFROXPQMRLQWV$
VKDOOEHPHDVXUHGIURPDSRLQWRQWKHEDUDWDGLVWDQFHGE/LQVLGHWKHIDFHRIWKHMRLQWWRWDNH$
LQWRDFFRXQWWKH\LHOGSHQHWUDWLRQGXHWRF\FOLFSRVWHODVWLFGHIRUPDWLRQV$
$
$QFKRUDJHRIUHEDUV$
$
±:KHQFDOFXODWLQJWKHDQFKRUDJHRUODSOHQJWKRIFROXPQEDUVZKLFKFRQWULEXWHWRWKH$
IOH[XUDOVWUHQJWKRIHOHPHQWVLQFULWLFDOUHJLRQVWKHUDWLRRIWKHUHTXLUHGDUHDRIUHLQIRUFHPHQW$
RYHUWKHDFWXDODUHDRIUHLQIRUFHPHQWVKDOOEHDVVXPHGWREHXQLW\$
$
± ,I XQGHU WKH VHLVPLF GHVLJQ VLWXDWLRQ WKH D[LDO IRUFH LQ D FROXPQ LV WHQVLOH WKH$
DQFKRUDJHOHQJWKVVKDOOEHLQFUHDVHGWRORQJHUWKDQWKRVHVSHFLILHGLQ(1$
$
± 7KH$ SDUW$
RI$EHDP$ ORQJLWXGLQDO$ UHLQIRUFHPHQW$ EHQW$LQ$ MRLQWV$IRU$
DQFKRUDJH$ VKDOO$
DOZD\VEHSODFHGLQVLGHWKHFRUUHVSRQGLQJFROXPQKRRSV$
$
± 7R SUHYHQW ERQG IDLOXUH WKH GLDPHWHU RI EHDP ORQJLWXGLQDO EDUV SDVVLQJ WKURXJK$
EHDPFROXPQMRLQWVGE/VKDOOEHOLPLWHGLQDFFRUGDQFHZLWKWKHIROORZLQJH[SUHVVLRQV$
D )RULQWHULRUEHDPFROXPQMRLQWV$
$ QZ
$ G E/$ Z FWP$ G
$ $
\G$ $U UPD[$
E )RUH[WHULRUEHDPFROXPQMRLQWV$
$
$ G E/$ Z FWP$ Q G $ $
\G$
$
$
± 7RSRUERWWRPEDUVSDVVLQJWKURXJKLQWHULRUMRLQWVVKDOOWHUPLQDWHLQWKHPHPEHUV$
IUDPLQJLQWRWKHMRLQWDWDGLVWDQFHQRWOHVVWKDQOFU OHQJWKRIWKHPHPEHUFULWLFDOUHJLRQIURP$
WKHIDFHRIWKHMRLQW VHH $
$
6SOLFLQJRIUHEDUV$
$
± 7KHUH VKDOO EH QR ODSVSOLFLQJ E\ ZHOGLQJ ZLWKLQ WKH FULWLFDO UHJLRQV RI VWUXFWXUDO$
HOHPHQWV$
$
±7KHUHPD\EHVSOLFLQJE\PHFKDQLFDOFRXSOHUVLQFROXPQVDQGZDOOVLIWKHVHGHYLFHV$
DUH FRYHUHG E\ DSSURSULDWH WHVWLQJ XQGHU FRQGLWLRQV FRPSDWLEOH ZLWK WKH VHOHFWHG GXFWLOLW\$
FODVV$
$
±7KHWUDQVYHUVHUHLQIRUFHPHQWWREHSURYLGHGZLWKLQWKHODSOHQJWKVKDOOEHFDOFXODWHG$
LQDFFRUGDQFH ZLWK(1 ,QDGGLWLRQWKHIROORZLQJUHTXLUHPHQWVVKDOODOVREH$
PHW$
D ,I WKH DQFKRUHG DQG WKH FRQWLQXLQJ EDU DUH DUUDQJHG LQ D SODQH SDUDOOHO WR WKH WUDQVYHUVH$
UHLQIRUFHPHQWWKHVXPRIWKHDUHDVRIDOOVSOLFHGEDUVVKDOOEHXVHGLQWKHFDOFXODWLRQRIWKH$
WUDQVYHUVHUHLQIRUFHPHQW$
E ,IWKHDQFKRUHGDQGWKHFRQWLQXLQJEDUDUHDUUDQJHGZLWKLQDSODQHQRUPDOWRWKHWUDQVYHUVH$
UHLQIRUFHPHQWWKHDUHDRIWUDQVYHUVHUHLQIRUFHPHQWVKDOOEHFDOFXODWHGRQWKHEDVLVRIWKHDUHD$
RIWKHODUJHUODSSHGORQJLWXGLQDOEDU$
F 7KH VSDFLQJV RI WKH WUDQVYHUVH UHLQIRUFHPHQW LQ WKHODS ]RQH LQ PLOOLPHWUHV VKDOO QRW$
H[FHHG$
$ VI PLQ ^K ` $ $
± 7KH$UHTXLUHG$DUHD$RI$WUDQVYHUVH$UHLQIRUFHPHQW$$VW$ZLWKLQ$WKH$ODS$]RQH$RI$WKH$
ORQJLWXGLQDOUHLQIRUFHPHQWRIFROXPQVVSOLFHGDWWKHVDPHORFDWLRQ DVGHILQHGLQ(1$
$RU$RI$WKH$ORQJLWXGLQDO$UHLQIRUFHPHQW$RI$ERXQGDU\$HOHPHQWV$LQ$ZDOOV$PD\$EH$
FDOFXODWHGIURPWKHIROORZLQJH[SUHVVLRQ$
G $ \OG$
$ $VW$ VI EO$ $ $
$ \ZG$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*2)6(&21'$5<6(,60,&(/(0(176$
$
±6HFRQGDU\VHLVPLFHOHPHQWVZKLFKDUHGHILQHGLQVKDOOEHGHVLJQHGDQGGHWDLOHG$
WRPDLQWDLQWKHLUFDSDFLW\WRVXSSRUWWKHJUDYLW\ORDGVSUHVHQWLQWKHVHLVPLFGHVLJQVLWXDWLRQ$
ZKHQVXEMHFWHGWRWKHPD[LPXPGHIRUPDWLRQVXQGHUWKHVHLVPLFGHVLJQVLWXDWLRQ$
$
± 0D[LPXP GHIRUPDWLRQV GXH WR WKH VHLVPLF GHVLJQ VLWXDWLRQ DV PHQWLRQHG LQ $
VKDOO EH FDOFXODWHG LQ DFFRUGDQFH ZLWK 7KH\ VKDOO EH FDOFXODWHG IURP DQ DQDO\VLV RI WKH$
VWUXFWXUH$LQ$WKH$VHLVPLF$GHVLJQ$VLWXDWLRQ$LQ$ZKLFK$WKH$FRQWULEXWLRQ$RI$VHFRQGDU\$VHLVPLF$
HOHPHQWVWRODWHUDOVWLIIQHVVLVQHJOHFWHGDQGSULPDU\VHLVPLFHOHPHQWVDUHPRGHOHGZLWKWKHLU$
FUDFNHGIOH[XUDODQGVKHDUVWLIIQHVV$
$
± %HQGLQJPRPHQWVDQGVKHDUIRUFHVRIVHFRQGDU\VHLVPLFHOHPHQWVVKDOOEHFDOFXODWHG$
ZLWKPD[LPXPGHIRUPDWLRQVGHILQHGLQ XVLQJWKHLUFUDFNHGIOH[XUDOVWLIIQHVVHVDQGLI$
QHFHVVDU\VKHDUVWLIIQHVVHV7KH\VKDOOQRWH[FHHGWKHLUGHVLJQIOH[XUDODQGVKHDUUHVLVWDQFHV$
GHWHUPLQHGRQWKHEDVLVRI(1$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
6(,60,&'(6,*15(48,5(0(176)25)281'$7,216$
$
*HQHUDO$
$
±7KHIROORZLQJSDUDJUDSKVDSSO\IRUWKHGHVLJQRIFRQFUHWHIRXQGDWLRQHOHPHQWVVXFK$
DV IRRWLQJV WLHEHDPV IRXQGDWLRQ EHDPV IRXQGDWLRQ VODEV IRXQGDWLRQ ZDOOV SLOH FDSV DQG$
SLOHV$DV$ZHOO$DV$IRU$FRQQHFWLRQV$EHWZHHQ$VXFK$HOHPHQWV$RU$EHWZHHQ$WKHP$DQG$YHUWLFDO$
FRQFUHWH HOHPHQWV 7KH GHVLJQ RI WKHVH HOHPHQWV VKDOO IROORZ WKH UXOHV RI (1 $
$
$
± 'HVLJQ$YDOXHV$RI$WKH$DFWLRQ$HIIHFWV$()G$RQ$WKH$IRXQGDWLRQV$VKDOO$EH$GHULYHG$DV$
IROORZV$
$ ()G$ ()*$ : ()($$ $
±,QER[W\SHEDVHPHQWVRIGLVVLSDWLYHVWUXFWXUHVFRPSULVLQJD DFRQFUHWHVODEDFWLQJ$
DVDULJLGGLDSKUDJPDWEDVHPHQWURRIOHYHOE DIRXQGDWLRQVODERUDJULOODJHRIWLHEHDPVRU$
IRXQGDWLRQ$ EHDPV$DW$IRXQGDWLRQ$OHYHO$DQG$F $SHULSKHUDO$DQGRU$
LQWHULRU$IRXQGDWLRQ$
ZDOOV$
FROXPQV DQG EHDPV LQFOXGLQJ WKRVH DW WKH EDVHPHQW URRI DUH H[SHFWHG WR UHPDLQ HODVWLF$
XQGHU$WKH$VHLVPLF$GHVLJQ$VLWXDWLRQ$6KHDU$ZDOOV$VKRXOG$EH$GHVLJQHG$IRU$SODVWLF$KLQJH$
GHYHORSPHQWDWWKHOHYHORIWKHEDVHPHQWURRIVODE7RWKLVHQGLQZDOOVZKLFKFRQWLQXHZLWK$
WKHVDPHFURVVVHFWLRQDERYHWKHEDVHPHQWURRIWKHFULWLFDOUHJLRQVKRXOGEHWDNHQWRH[WHQG$
EHORZWKHEDVHPHQWURRIOHYHOXSWRDGHSWKRIKFU VHH 0RUHRYHUWKHIXOOIUHHKHLJKW$
RI VXFK ZDOOV ZLWKLQ WKH EDVHPHQW VKRXOG EH GLPHQVLRQHG LQ VKHDU DVVXPLQJ WKDW WKH ZDOO$
GHYHORSVLWVIOH[XUDORYHUVWUHQJWK05G DWWKHEDVHPHQWURRIOHYHODQG]HURPRPHQWDWWKH$
IRXQGDWLRQOHYHO$
$
7LHEHDPVDQGIRXQGDWLRQEHDPV$
$
± 6WXEFROXPQVEHWZHHQWKHWRSRIDIRRWLQJRUSLOHFDSDQGWKHVRIILWRIWLHEHDPVRU$
IRXQGDWLRQVODEVVKDOOEHDYRLGHG7RWKLVHQGWKHVRIILWRIWLHEHDPVRUIRXQGDWLRQVODEVVKDOO$
EHEHORZWKHWRSRIWKHIRRWLQJRUWKHSLOHFDS$
$
± $[LDO IRUFHV LQ$WLHEHDPV$RU$WLH]RQHV$RI IRXQGDWLRQ$VODEV LQ$DFFRUGDQFH ZLWK$
DQG RI(1VKRXOGEHWDNHQLQWKHYHULILFDWLRQWRDFWWRJHWKHUZLWKWKH$
DFWLRQHIIHFWVGHULYHGIRUWKHVHLVPLFGHVLJQVLWXDWLRQ$
$
± 7LHEHDPV DQG IRXQGDWLRQ EHDPV VKRXOG KDYH D FURVVVHFWLRQDO ZLGWK RI DW OHDVW$
EZPLQ PPDQGDFURVVVHFWLRQDOGHSWKRIDWOHDVWKZPLQ PP$
$
± )RXQGDWLRQ VODEV DUUDQJHG LQ DFFRUGDQFH ZLWK (1 IRU WKH$
KRUL]RQWDOFRQQHFWLRQRILQGLYLGXDOIRRWLQJVRUSLOHFDSVVKRXOGKDYHDWKLFNQHVVRIDWOHDVW$
WPLQ PPDQGDUHLQIRUFHPHQWUDWLRRIDWOHDVWȡVPLQ DWWKHWRSDQGERWWRP$
$
± 7LHEHDPVDQGIRXQGDWLRQEHDPVVKRXOGKDYHDORQJWKHLUIXOOOHQJWKDORQJLWXGLQDO$
UHLQIRUFHPHQWUDWLRRIDWOHDVWȡEPLQ DWERWKWKHWRSDQGWKHERWWRP$
$
&RQQHFWLRQVRIYHUWLFDOHOHPHQWVZLWKIRXQGDWLRQEHDPVRUZDOOV$
$
± 7KHFRPPRQ MRLQW UHJLRQRIDIRXQGDWLRQEHDPRUIRXQGDWLRQZDOODQGDYHUWLFDO$
HOHPHQWVKDOOIROORZWKHUXOHVRIDVDEHDPFROXPQMRLQWUHJLRQ$
$
$
±7KHFRQQHFWLRQRIIRXQGDWLRQEHDPVRUIRXQGDWLRQZDOOVZLWKYHUWLFDOHOHPHQWVVKDOO$
IROORZWKHUXOHVRI$
$
± %HQGV RU KRRNV DW WKH ERWWRP RI ORQJLWXGLQDO EDUV RI YHUWLFDO HOHPHQWV VKRXOG EH$
RULHQWHGVRWKDWWKH\LQGXFHFRPSUHVVLRQLQWRWKHFRQQHFWLRQDUHD$
$
&DVWLQSODFHFRQFUHWHSLOHVDQGSLOHFDSV$
$
± 7KHWRSRIWKHSLOHXSWRDGLVWDQFHWRWKHXQGHUVLGHRIWKHSLOHFDSRIWZLFHWKHSLOH$
FURVVVHFWLRQDOGLPHQVLRQGDVZHOODVWKHUHJLRQVXSWRDGLVWDQFHRIGRQHDFKVLGHRIDQ$
LQWHUIDFHEHWZHHQWZRVRLOOD\HUVZLWKPDUNHGO\GLIIHUHQWVKHDUVWLIIQHVV UDWLRRIVKHDUPRGXOL$
JUHDWHUWKDQ VKDOOEHGHWDLOHGDVSRWHQWLDOSODVWLFKLQJHUHJLRQV7RWKLVHQGWKH\VKDOOEH$
SURYLGHG$ZLWK$WUDQVYHUVH$DQG$FRQILQHPHQW$UHLQIRUFHPHQW$IROORZLQJ$WKH$UXOHV$IRU$FROXPQ$
FULWLFDOUHJLRQVJLYHQLQ$
$
± 3LOHV UHTXLUHG WR UHVLVW WHQVLOH IRUFHV RU DVVXPHG DV URWDWLRQDOO\ IL[HG DW WKH WRS$
VKRXOG EH SURYLGHG ZLWK DQFKRUDJH LQ WKH SLOH FDS WR HQDEOH WKH GHYHORSPHQW RI WKH SLOH$
GHVLJQXSOLIWUHVLVWDQFHLQWKHVRLORURIWKHGHVLJQWHQVLOHVWUHQJWKRIWKHSLOHUHLQIRUFHPHQW$
ZKLFKHYHULVORZHU,IWKHSDUWRIVXFKSLOHVHPEHGGHGLQWKHSLOHFDSLVFDVWEHIRUHWKHSLOH$
FDSGRZHOVVKRXOGEHSURYLGHGDWWKHLQWHUIDFHZKHUHWKHFRQQHFWLRQRFFXUV$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
&+$37(5$
6(,60,&'(6,*15(48,5(0(176$
)256758&785$/67((/%8,/',1*6$
$
6&23($1''(6,*1&21&(376$
$
6FRSH$
$
±7KLV&KDSWHUDSSOLHVWRWKHVHLVPLFGHVLJQRIHOHPHQWVRIVWUXFWXUDOVWHHOEXLOGLQJV$
$
±7KHUXOHVJLYHQLQWKLV&KDSWHUDUHDGGLWLRQDOWRWKRVHJLYHQLQ(1$
$
'HVLJQ&RQFHSWV$
$
± 'HVLJQ RI HDUWKTXDNH UHVLVWDQW VWHHO EXLOGLQJV VKDOO SURYLGH WKH VWUXFWXUH ZLWK DQ$
DGHTXDWH HQHUJ\ GLVVLSDWLRQ FDSDFLW\ ZLWKRXW VXEVWDQWLDO UHGXFWLRQ RI LWV RYHUDOO UHVLVWDQFH$
DJDLQVWKRUL]RQWDODQGYHUWLFDOORDGLQJ$GHTXDWHUHVLVWDQFHRIDOOVWUXFWXUDOHOHPHQWVVKDOOEH$
SURYLGHGDQGQRQOLQHDUGHIRUPDWLRQGHPDQGVLQFULWLFDOUHJLRQVVKRXOGEHFRPSDWLEOHZLWK$
WKHRYHUDOOGXFWLOLW\DVVXPHGLQFDOFXODWLRQV$
$
±6WHHOEXLOGLQJVPD\DOWHUQDWLYHO\EHGHVLJQHGIRUORZGLVVLSDWLRQFDSDFLW\DQGORZ$
GXFWLOLW\E\DSSO\LQJRQO\WKHUXOHVRI(1IRUWKHVHLVPLFGHVLJQVLWXDWLRQDQG$
QHJOHFWLQJ$WKH$VSHFLILF$SURYLVLRQV$JLYHQ$LQ$WKLV$FKDSWHU$7KH$FODVV$RI$VXFK$EXLOGLQJV$LV$
LGHQWLILHGDV/RZ'XFWLOLW\&ODVV '&/ $
$
$±$6WHHO$EXLOGLQJV$RWKHU$WKDQ$WKRVH$WR$ZKLFK$$DSSOLHV$VKDOO$EH$GHVLJQHG$WR$
SURYLGH$HQHUJ\$GLVVLSDWLRQ$FDSDFLW\$DQG$DQ$RYHUDOO$GXFWLOH$EHKDYLRXU$2YHUDOO$GXFWLOH$
EHKDYLRXULVHQVXUHGLIWKHGXFWLOLW\GHPDQGLQYROYHVJOREDOO\DODUJHYROXPHRIWKHVWUXFWXUH$
VSUHDG WR GLIIHUHQW HOHPHQWV DQG ORFDWLRQV RI DOO LWV VWRUH\V 7R WKLV HQG GXFWLOH PRGHV RI$
IDLOXUH$VKRXOG$SUHFHGH$EULWWOH$IDLOXUH$PRGHV$ZLWK$VXIILFLHQW$UHOLDELOLW\$7KH$FODVV$RI$VXFK$
EXLOGLQJV$LV$LGHQWLILHG$DV$1RUPDO 'XFWLOLW\ &ODVV$'&1 $IRU$ZKLFK$VWHHO$VHLVPLF$GHVLJQ$
UHTXLUHPHQWVDUHJLYHQLQWKHUHPDLQGHURI&KDSWHU$
$
6WUXFWXUDOW\SHVDQG%HKDYLRXU)DFWRUV$
$
±6WHHOEXLOGLQJVDUHFODVVLILHGZLWKUHVSHFWWRVWUXFWXUDOW\SHVDQGWKHLUFRPELQDWLRQV$
DVIROORZV$
D 0RPHQWUHVLVWLQJI UDPH V\VWHP LV GHILQHG DV D VWUXFWXUDO V\VWHP FRPSRVHG RI PRPHQW$
UHVLVWLQJIUDPHVRQO\$
E &RQFHQWULFEUDFHG UDPHV\VWHPLVGHILQHGDVDVWUXFWXUDOV\VWHPFRPSRVHGRIFRQFHQWULF$
EUDFHGIUDPHVRQO\I
F (FFHQWULF EUDFHGI UDPH V\VWHP LV GHILQHG DV D VWUXFWXUDO V\VWHP FRPSRVHG RI HFFHQWULF$
EUDFHGIUDPHVRQO\$
G )UDPHGRPLQDQW GXDO V\VWHP LV GHILQHG$
DV$
D$
VWUXFWXUDO$
V\VWHP$ FRPSRVHG$ RI$
PRPHQW$
UHVLVWLQJ$IUDPHV$ZKLFK$UHVLVW$PRUH$WKDQ$$RI$WKH$WRWDO$FDOFXODWHG$EDVH$VKHDU$LQ$
FRPELQDWLRQZLWKHFFHQWULFRUFRQFHQWULFEUDFHGIUDPHV$
$
$
6WUXFWXUDOW\SH$ TI
0RPHQWUHVLVWLQJIUDPHV\VWHP$ $
(FFHQWULFEUDFHGIUDPHV\VWHP$ $
&RQFHQWULFEUDFHGIUDPHV\VWHP$ $
)UDPHGRPLQDQWGXDOV\VWHP$ $
%UDFHGIUDPHGRPLQDQWGXDOV\VWHP$ $
HFFHQWULFEUDFLQJ $ $
%UDFHGIUDPHGRPLQDQWGXDOV\VWHP$ $
FRQFHQWULFEUDFLQJ $ $
:DOOGRPLQDQWGXDOV\VWHP FRXSOHGZDOOV $ $
:DOOGRPLQDQWGXDOV\VWHP XQFRXSOHGZDOOV $ $
,QYHUWHGSHQGXOXPV\VWHP$ $
$
0DWHULDO5HTXLUHPHQWV$
$
±6WUXFWXUDOVWHHOVKDOOFRQIRUPWRVWDQGDUGVUHIHUUHGWRLQ(1$
$
$
$
± 7KH WRXJKQHVV RI WKH VWHHOV DQG WKH ZHOGV VKRXOG VDWLVI\ WKH UHTXLUHPHQWV IRU WKH$
VHLVPLF$DFWLRQ$DW$WKH$TXDVLSHUPDQHQW$YDOXH$RI$WKH$VHUYLFH$WHPSHUDWXUH$VHH$(1$$
$
$
± ,QEROWHGFRQQHFWLRQVRISULPDU\VHLVPLFPHPEHUVRIDEXLOGLQJKLJKVWUHQJWKEROWV$
RIEROWJUDGHRUVKRXOGEHXVHG$
$
± ,QWKHFDSDFLW\GHVLJQFKHFNVVSHFLILHGLQ WR WKHSRVVLELOLW\WKDWWKHDFWXDO$
\LHOGVWUHQJWKRIVWHHOLVKLJKHUWKDQWKHQRPLQDO\LHOGVWUHQJWKVKRXOGEHWDNHQLQWRDFFRXQW$
E\DPDWHULDORYHUVWUHQJWKIDFWRUȖRY $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
*(1(5$/'(6,*1&5,7(5,$$1''(7$,/,1*58/(6$
$
'HVLJQUXOHVIRUGXFWLOHHOHPHQWVLQFRPSUHVVLRQRUEHQGLQJ$
$
± 6XIILFLHQW ORFDO GXFWLOLW\$
RI$
PHPEHUV ZKLFK GLVVLSDWH$ HQHUJ\$LQ$FRPSUHVVLRQ$ RU$
EHQGLQJ VKDOO EH HQVXUHG E\ UHVWULFWLQJ WKH ZLGWKWKLFNQHVV UDWLR EW DFFRUGLQJ WR WKH FURVV$
VHFWLRQDOFODVVHVVSHFLILHGLQ(1$
$
± 'HSHQGLQJRQWKHGXFWLOLW\FODVVDQGWKHEHKDYLRXUIDFWRUTXVHGLQWKHGHVLJQWKH$
UHTXLUHPHQWV$UHJDUGLQJ$WKH$FURVVVHFWLRQDO$FODVVHV$RI$WKH$VWHHO$HOHPHQWV$ZKLFK$GLVVLSDWH$
HQHUJ\DUHLQGLFDWHGLQ7DEOH$
$
7DEOH5HTXLUHGFURVVVHFWLRQDOFODVV$
%HKDYLRXU)DFWRU$ &URVVVHFWLRQDO$
T$ FODVV$
Td$ &ODVVRU$
Td$ &ODVVRU$
$
'HVLJQUXOHVIRUGXFWLOHHOHPHQWVLQWHQVLRQ$
$
)RUWHQVLRQPHPEHUVRUSDUWVRIPHPEHUVLQWHQVLRQWKHGXFWLOLW\UHTXLUHPHQWRI(1$
VKRXOGEHPHW$
$
'HVLJQUXOHVIRUFRQQHFWLRQV$
$
±)RUILOOHWZHOGRUEROWHGFRQQHFWLRQV(T VKRXOGEHVDWLVILHG$
$ 5G$$tZ JZ
RY$5II\$$ $
± &DWHJRULHV%DQG&RIEROWHGMRLQWVLQVKHDULQDFFRUGDQFHZLWK(1$
DQGFDWHJRU\(RIEROWHGMRLQWVLQWHQVLRQLQDFFRUGDQFHZLWK(1VKRXOG$
EH XVHG 6KHDU MRLQWV ZLWK ILWWHG EROWV DUH DOVR DOORZHG )ULFWLRQ VXUIDFHV VKRXOG EHORQJ WR$
FODVV$RU%DVGHILQHGLQ(19$
$
± )RU EROWHG VKHDU FRQQHFWLRQV WKH GHVLJQ VKHDU UHVLVWDQFH RI WKH EROWV VKRXOG EH$
KLJKHUWKDQWLPHVWKHGHVLJQEHDULQJUHVLVWDQFH$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25020(175(6,67,1*)5$0(6$
$
'HVLJQFULWHULD$
$
± 0RPHQWUHVLVWLQJIUDPHVVKDOOEHGHVLJQHGVRWKDWSODVWLFKLQJHVIRUPLQWKHEHDPV$
RULQWKHFRQQHFWLRQVRIWKHEHDPVWRWKHFROXPQVEXWQRWLQWKHFROXPQVLQDFFRUGDQFHZLWK$
$
$
± ,Q$PRPHQW$UHVLVWLQJ$IUDPH$V\VWHPV$LQFOXGLQJ$IUDPHGRPLQDQW$GXDO$V\VWHPV$DV$
GHILQHGLQWKHIROORZLQJFRQGLWLRQVKRXOGEHVDWLVILHGDWDOOEHDPFROXPQMRLQWV$
$
$
± )RUSODVWLFKLQJHVLQWKHEHDPVLWVKRXOGEHYHULILHGWKDWWKHIXOOSODVWLFPRPHQWRI$
UHVLVWDQFH DQG URWDWLRQ FDSDFLW\ DUH QRW GHFUHDVHG E\ FRPSUHVVLRQ DQG VKHDU IRUFHV 7R WKLV$
HQG$IRU$VHFWLRQV$EHORQJLQJ$WR$FURVVVHFWLRQDO$FODVVHV$$DQG$$WKH$IROORZLQJ$LQHTXDOLWLHV$
VKRXOGEHYHULILHGDWWKHORFDWLRQZKHUHWKHIRUPDWLRQRIKLQJHVLVH[SHFWHG$
0 (G$
d $
0 SO5G$
1 (G$
$ dZ $ $
1 SO5G$
9(G$
dZ$
9SO5G$
ZKHUH$
0ISO5G$ Z0 SO5G%$
$ 9I(G$ 9I(G*$Z9I(G0$9I(G0$ $ $ $
/I
)RUVHFWLRQVEHORQJLQJWRFURVVVHFWLRQDOFODVV1SO5G0SO5G9SO5GPXVWEHUHSODFHGZLWK$
1HO5G0HO5G9HO5GLQ(T DQG(T $
$
± 7KH FRQGLWLRQ LQ WKH VHFRQG H[SUHVVLRQ RI (T PD\ QRW EH YHULILHG SURYLGHG$
WKDWWKHSURYLVLRQVRI(1DUHVDWLVILHG$
$
&ROXPQV$
$
± 7KH FROXPQV VKDOO EH YHULILHG LQ FRPSUHVVLRQ FRQVLGHULQJ WKH PRVW XQIDYRXUDEOH$
FRPELQDWLRQRIWKHD[LDOIRUFHDQGEHQGLQJPRPHQWV1HG0HG9HGVKDOOEHFDOFXODWHGDV$
1I(G$ 1I(G*$ J RY$: 1 (G($
$ 0I(G$ 0I(G*$ J RY$: 0I(G($$ $
9I(G$ 9I(G*$ J RY$:Z9(G($
± 7KH WUDQVIHU RI WKH IRUFHV IURP WKH EHDPV WR WKH FROXPQV VKRXOG FRQIRUP WR WKH$
GHVLJQUXOHVJLYHQLQ(16HFWLRQ$
$
± 7KH VKHDU$UHVLVWDQFH RI IUDPHG ZHE SDQHOV RI EHDPFROXPQ$ FRQQHFWLRQV VKRXOG$
VDWLVI\WKHIROORZLQJH[SUHVVLRQ$
$
$
9ZS(G$
$ d $ $
9ZS5G$
ZKHUH9ZS(GLVWKHGHVLJQVKHDUIRUFHLQWKHZHESDQHOGXHWRWKHDFWLRQHIIHFWVWDNLQJLQWR$
DFFRXQW$WKH$SODVWLF$UHVLVWDQFH$RI$WKH$DGMDFHQW$EHDPV$RU$FRQQHFWLRQV$9ZS5G$LV$WKH$VKHDU$
UHVLVWDQFHRIWKHZHESDQHOLQDFFRUGDQFHZLWK(1,WLVQRWUHTXLUHG$
WRWDNHLQWR DFFRXQWWKH HIIHFWRIWKHVWUHVVHVRIWKHD[LDOIRUFHDQGEHQGLQJPRPHQWRQWKH$
SODVWLFUHVLVWDQFHLQVKHDU$
$
± 7KH VKHDU EXFNOLQJ UHVLVWDQFH RI WKH ZHE SDQHOV VKRXOG DOVR EHFKHFNHG WR HQVXUH$
WKDWLWFRQIRUPVWR(16HFWLRQ$
9ZS(G$
$ d $ $
9ZE5G$
ZKHUH9ZE5GLVWKHVKHDUEXFNOLQJUHVLVWDQFHRIWKHZHESDQHO$
$
%HDPFROXPQFRQQHFWLRQV$
$
± ,IWKHVWUXFWXUHLVGHVLJQHGWRGLVVLSDWHHQHUJ\LQWKHEHDPVWKHFRQQHFWLRQVRIWKH$
EHDPVWRWKHFROXPQVVKRXOGEHGHVLJQHGIRUWKHUHTXLUHGGHJUHHRIRYHUVWUHQJWKWDNLQJLQWR$
DFFRXQW$ WKH$PRPHQW$ RI$
UHVLVWDQFH$
0SO5G DQG$
WKH$
VKHDU$ IRUFH$9HG*$
$
9HG0 $HYDOXDWHG$LQ$
$
$
± (QHUJ\$GLVVLSDWLQJ$VHPLULJLG$DQGRU$SDUWLDO$VWUHQJWK$FRQQHFWLRQV$DUH$SHUPLWWHG$
SURYLGHGWKDWDOORIWKHIROORZLQJUHTXLUHPHQWVDUHYHULILHG$
D &RQQHFWLRQVKDYHDURWDWLRQFDSDFLW\FRQVLVWHQWZLWKWKHJOREDOGHIRUPDWLRQV$
E 0HPEHUVIUDPLQJLQWRWKHFRQQHFWLRQVDUHGHPRQVWUDWHGWREHVWDEOHDWWKHXOWLPDWHOLPLW$
VWDWH 8/6 $
F (IIHFW RI FRQQHFWLRQ GHIRUPDWLRQ RQ JOREDO GULIW LV WDNHQ LQWR DFFRXQW XVLQJ QRQOLQHDU$
VWDWLF SXVKRYHU JOREDODQDO\VLVRUQRQOLQHDUUHVSRQVHKLVWRU\DQDO\VLV$
$
± 7KHFRQQHFWLRQGHVLJQVKRXOGEHVXFKWKDWWKHFKRUGURWDWLRQFDSDFLW\RIWKHSODVWLF$
KLQJHUHJLRQTSLVQRWOHVVWKDQPUDGIRUVWUXFWXUHVZLWKT!$
$
± ,Q H[SHULPHQWV PDGH WR DVVHVV TS WKH FROXPQ ZHE SDQHO VKHDU UHVLVWDQFH VKRXOG$
FRQIRUP WR (T DQG WKH FROXPQ ZHE SDQHO VKHDU GHIRUPDWLRQ VKRXOGQRW FRQWULEXWH IRU$
PRUHWKDQRIWKHSODVWLFURWDWLRQFDSDELOLW\TS$
$
±7KHFROXPQHODVWLFGHIRUPDWLRQVKRXOGQRWEHLQFOXGHGLQWKHHYDOXDWLRQRITS$
$
± :KHQ SDUWLDO VWUHQJWK FRQQHFWLRQV DUH XVHG WKH FROXPQ FDSDFLW\ GHVLJQ VKRXOG EH$
GHULYHGIURPWKHSODVWLFFDSDFLW\RIWKHFRQQHFWLRQV$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25)5$0(6:,7+&21&(175,&$
%5$&,1*6$
$
'HVLJQFULWHULD$
$
± &RQFHQWULF EUDFHG IUDPHV VKDOO EH GHVLJQHG VR WKDW \LHOGLQJ RI WKH GLDJRQDOV LQ$
WHQVLRQZLOOWDNHSODFHEHIRUHIDLOXUHRIWKHFRQQHFWLRQVDQGEHIRUH\LHOGLQJRUEXFNOLQJRIWKH$
EHDPVRUFROXPQV$
$
± 'LDJRQDO$ HOHPHQWV$ RI EUDFLQJV$VKDOO EH SODFHG LQ$ VXFK$D$
ZD\ WKDW WKH$ VWUXFWXUH$
H[KLELWV VLPLODU ORDG GHIOHFWLRQ FKDUDFWHULVWLFV DW HDFK VWRUH\ LQ RSSRVLWH VHQVHV RI WKH VDPH$
EUDFHGGLUHFWLRQXQGHUORDGUHYHUVDOV,QWKLVUHJDUGWKHIROORZLQJUXOHVKRXOGEHPHWDWHYHU\$
VWRUH\$
$ Z$ Z
$ dZ $ $
$IZZ$I
ZKHUH$DQG$±DUHWKHDUHDVRIWKHKRUL]RQWDOSURMHFWLRQVRIWKHFURVVVHFWLRQVRIWKHWHQVLRQ$
GLDJRQDOV$ZKHQ$WKH$KRUL]RQWDO$VHLVPLF$DFWLRQV$KDYH$D$SRVLWLYH$RU$QHJDWLYH$GLUHFWLRQ$
UHVSHFWLYHO\$
$
$QDO\VLV$
$
±8QGHUJUDYLW\ORDGFRQGLWLRQVRQO\EHDPVDQGFROXPQVVKDOOEHFRQVLGHUHGWRUHVLVW$
VXFKORDGVZLWKRXWWDNLQJLQWRDFFRXQWWKHEUDFLQJPHPEHUV$
$
± 'LDJRQDOV$VKDOO$EH$WDNHQ$LQWR$DFFRXQW$DV$IROORZV$LQ$DQ$HODVWLF$DQDO\VLV$RI$WKH$
VWUXFWXUHIRUWKHVHLVPLFDFWLRQ$
D ,QIUDPHVZLWKGLDJRQDOEUDFLQJVRQO\WKHWHQVLRQGLDJRQDOVVKDOOEHWDNHQLQWRDFFRXQW$
E ,QIUDPHVZLWK9EUDFLQJVERWKWKHWHQVLRQDQGFRPSUHVVLRQGLDJRQDOVVKDOOEHWDNHQLQWR$
DFFRXQW$
$
± 7DNLQJ LQWR DFFRXQW RI ERWK WHQVLRQ DQG FRPSUHVVLRQ GLDJRQDOV LQ WKH DQDO\VLV RI$
DQ\ W\SH RI FRQFHQWULF EUDFLQJ LV DOORZHG SURYLGHG WKDW DOO RI WKH IROORZLQJ FRQGLWLRQV DUH$
VDWLVILHG$
D 1RQOLQHDUVWDWLF SXVKRYHU JOREDODQDO\VLVRUQRQOLQHDUWLPHKLVWRU\DQDO\VLVLVXVHG$
E ERWKSUHEXFNOLQJDQGSRVWEXFNOLQJVLWXDWLRQVDUHWDNHQLQWRDFFRXQWLQWKHPRGHOOLQJRI$
WKHEHKDYLRXURIGLDJRQDOVDQG$
F EDFNJURXQGLQIRUPDWLRQMXVWLI\LQJWKHPRGHOXVHGWRUHSUHVHQWWKHEHKDYLRXURIGLDJRQDOV$
LVSURYLGHG$
$
'LDJRQDOPHPEHUV$
$
± ,QIUDPHVZLWK;GLDJRQDOEUDFLQJVWKHQRQGLPHQVLRQDOVOHQGHUQHVV$Ȝ DVGHILQHG$
LQ(1VKRXOGEHOLPLWHGWR Ȝ $
$
± ,Q IUDPHV ZLWK GLDJRQDO EUDFLQJV LQ ZKLFK WKH GLDJRQDOV DUH QRW SRVLWLRQHG DV ;$
GLDJRQDOEUDFLQJVWKHQRQGLPHQVLRQDOVOHQGHUQHVV Ȝ VKRXOGEHOHVVWKDQRUHTXDOWR$
$
$
±,QIUDPHVZLWK9EUDFLQJVWKHQRQGLPHQVLRQDOVOHQGHUQHVV Ȝ VKRXOGEHOHVVWKDQRU$
HTXDOWR$
$
±,QVWUXFWXUHVRIXSWRWZRVWRUH\VQROLPLWDWLRQDSSOLHVWR Ȝ $
$
±<LHOGUHVLVWDQFH1SO5GRIWKHJURVVFURVVVHFWLRQRIWKHGLDJRQDOVVKRXOGEHVXFKWKDW$
1SO5Gt1(G$
$
± ,Q IUDPHV ZLWK 9 EUDFLQJV WKH FRPSUHVVLRQ GLDJRQDOV VKRXOG EH GHVLJQHG IRU WKH$
FRPSUHVVLRQUHVLVWDQFHLQDFFRUGDQFHZLWK(1$
$
± 7KHFRQQHFWLRQVRIWKHGLDJRQDOVWRDQ\PHPEHUVKRXOGVDWLVI\WKHGHVLJQUXOHVRI$
$
$
± ,QRUGHUWRVDWLVI\DKRPRJHQHRXVGLVVLSDWLYHEHKDYLRXURIWKHGLDJRQDOVLWVKRXOG$
EH FKHFNHG WKDW WKH PD[LPXP RYHUVWUHQJWK ȍL GHILQHG LQ GRHV QRW GLIIHU IURP WKH$
PLQLPXPYDOXH E\PRUHWKDQ$
$
± (QHUJ\$GLVVLSDWLQJ$VHPLULJLG$DQGRU$SDUWLDO$VWUHQJWK$FRQQHFWLRQV$DUH$SHUPLWWHG$
SURYLGHGWKDWDOORIWKHIROORZLQJFRQGLWLRQVDUHVDWLVILHG$
D &RQQHFWLRQVKDYHDQHORQJDWLRQFDSDFLW\FRQVLVWHQWZLWKJOREDOGHIRUPDWLRQV$
E (IIHFW RI FRQQHFWLRQV GHIRUPDWLRQ RQ JOREDO GULIW LV WDNHQ LQWR DFFRXQW XVLQJ QRQOLQHDU$
VWDWLF SXVKRYHU JOREDODQDO\VLVRUQRQOLQHDUWLPHKLVWRU\DQDO\VLV$
$
%HDPVDQGFROXPQV$
$
±%HDPVDQGFROXPQVZLWKD[LDOIRUFHVVKRXOGPHHWWKHIROORZLQJPLQLPXPUHVLVWDQFH$
UHTXLUHPHQW$
$ 1 SO5G$0 (G$$tZ1 (G*$ JZ
RY$: 1 (G($$ $
$
$
± ,QIUDPHVZLWKGLDJRQDOEUDFLQJVZKHUHWHQVLRQDQGFRPSUHVVLRQGLDJRQDOVDUHQRW$
LQWHUVHFWLQJ WKH GHVLJQ VKRXOG WDNH LQWR DFFRXQW WKH WHQVLOH DQG FRPSUHVVLRQ IRUFHV ZKLFK$
GHYHORS$LQ$WKH$FROXPQV$DGMDFHQW$WR$WKH$GLDJRQDOV$LQ$FRPSUHVVLRQ$DQG$FRUUHVSRQG$WR$
FRPSUHVVLRQIRUFHVLQWKHVHGLDJRQDOVHTXDOWRWKHLUGHVLJQEXFNOLQJUHVLVWDQFH$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25)5$0(6:,7+(&&(175,&$
%5$&,1*6$
$
'HVLJQFULWHULD$
$
±)UDPHVZLWKHFFHQWULFEUDFLQJVVKDOOEHGHVLJQHGVRWKDWVSHFLILFHOHPHQWVRUSDUWVRI$
HOHPHQWVFDOOHGVHLVPLFOLQNVDUHDEOHWRGLVVLSDWHHQHUJ\E\WKHIRUPDWLRQRISODVWLFEHQGLQJ$
DQGRUSODVWLFVKHDUPHFKDQLVPV$
$
±6HLVPLFOLQNVPD\EHKRUL]RQWDORUYHUWLFDOFRPSRQHQWV$
$
6HLVPLFOLQNV$
$
± 7KHZHERIDOLQNVKRXOGEHRIVLQJOHWKLFNQHVVZLWKRXWGRXEOHUSODWHUHLQIRUFHPHQW$
DQGZLWKRXWDKROHRUSHQHWUDWLRQ$
$
± 6HLVPLF$OLQNV$DUH$FODVVLILHG$LQWR$$FDWHJRULHV$DFFRUGLQJ$WR$WKH$W\SH$RI$SODVWLF$
PHFKDQLVPGHYHORSHG$
D 6KRUWOLQNVZKLFKGLVVLSDWHHQHUJ\E\\LHOGLQJHVVHQWLDOO\LQVKHDU$
E /RQJOLQNVZKLFKGLVVLSDWHHQHUJ\E\\LHOGLQJHVVHQWLDOO\LQEHQGLQJ$
F ,QWHUPHGLDWHOLQNVLQZKLFKWKHSODVWLFPHFKDQLVPLQYROYHVEHQGLQJDQGVKHDU$
$
±)RU,VHFWLRQVWKHIROORZLQJSDUDPHWHUVDUHXVHGWRGHILQHWKHGHVLJQUHVLVWDQFHVDQG$
OLPLWVRIFDWHJRULHV$
$ 0ISOLQN$ $\ E WII$ G WII$ $ $
± ,I 1(G 1SO5G WKH GHVLJQ UHVLVWDQFH RI WKH OLQN VKRXOG VDWLVI\ ERWK RI WKH$
IROORZLQJUHODWLRQVKLSVDWERWKHQGVRIWKHOLQN$
9I(G$dZ9SOLQN$
$ $ $
0I(G$dZ0 SOLQN$
ZKHUH 1(G 0(G 9(G DUH WKH GHVLJQ D[LDO IRUFH GHVLJQ EHQGLQJ PRPHQW DQG GHVLJQ VKHDU$
UHVSHFWLYHO\DWERWKHQGVRIWKHOLQN$
$
± ,I 1(G 1SO5G ! (TV VKRXOG EH VDWLVILHG ZLWK WKH IROORZLQJ UHGXFHG$
YDOXHV9SOLQNUDQG0SOLQNUXVHGLQVWHDGRI9SOLQNDQG0SOLQN$
±,I1(G1SO5GOLQNOHQJWKHVKRXOGQRWH[FHHG$
$
$
0 SOLQN$
HI d $
$ LI5 Z $
9SOLQN$
$ $ $
0 SOLQN$
HI d $
$ 5 LI5 tZ $
9SOLQN$
ZKHUH$
1I WI G WII
$ 5I $ (G$Z$ $$ $
9(G$$
$
LQZKLFK$LVWKHJURVVDUHDRIWKHOLQN$
$
±7RDFKLHYHDJOREDOGLVVLSDWLYHEHKDYLRXURIWKHVWUXFWXUHLWVKRXOGEHFKHFNHGWKDW$
WKHLQGLYLGXDOYDOXHVRIWKHUDWLRV ȍL GHILQHGLQGRQRWH[FHHGWKHPLQLPXPYDOXH ȍ$
UHVXOWLQJIURPE\PRUHWKDQRIWKLVPLQLPXPYDOXH$
$
±:KHQHTXDOPRPHQWVGHYHORSVLPXOWDQHRXVO\DWERWKHQGVRIWKHOLQNOLQNVPD\EH$
FODVVLILHGDFFRUGLQJWRWKHOHQJWKH)RU,VHFWLRQVWKHFDWHJRULHVDUH$
0 SOLQN$
6KRUWOLQNVHI dZHIV$ $
$
9SOLQN$
0 SOLQN$
$ /RQJOLQNVHI !ZH/ $
$ $
9SOLQN$
,QWHUPHGLDWHOLQNVHIV$ZHI ZH/$
±:KHQRQO\RQHSODVWLFKLQJHGHYHORSVDWRQHHQGRIWKHOLQNWKHYDOXHRIWKHOHQJWK$
HGHILQHVWKHFDWHJRULHVRIWKHOLQNV)RU,VHFWLRQVWKHFDWHJRULHVDUH$
0
6KRUWOLQNVHI dZHV D $ SOLQN$
9SOLQN$
0
$ /RQJOLQNVHI !ZH/ D $ SOLQN$$ $
9SOLQN$
,QWHUPHGLDWHOLQNVHIV$ZHI ZH/$
ZKHUH Į LV WKH UDWLR RI WKH VPDOOHU EHQGLQJ PRPHQWV 0(G$ DW RQH HQG RI WKH OLQN LQ WKH$
VHLVPLF GHVLJQ VLWXDWLRQ WR WKH JUHDWHU EHQGLQJ PRPHQWV 0(G% DW WKH HQG ZKHUH WKH SODVWLF$
KLQJHGHYHORSVERWKPRPHQWVEHLQJWDNHQDVDEVROXWHYDOXHV$
$
±7KHOLQNURWDWLRQDQJOH șS EHWZHHQWKHOLQNDQGWKHHOHPHQWRXWVLGHRIWKHOLQNDV$
GHILQHG LQ VKRXOG EH FRQVLVWHQW ZLWK JOREDO GHIRUPDWLRQV ,W VKRXOG QRW H[FHHG WKH$
IROORZLQJYDOXHV$
S$ TZ
6KRUWOLQNVTZd S5$ UDGLDQ$
$
$
±)XOOGHSWKZHEVWLIIHQHUVVKRXOGEHSURYLGHGRQERWKVLGHVRIWKHOLQNZHEDWWKH$
GLDJRQDO EUDFH HQGV RI WKH OLQN 7KHVH VWLIIHQHUV VKRXOG KDYH D FRPELQHG ZLGWK RI QRW OHVV$
WKDQ EI±WZ DQGDWKLFNQHVVQRWOHVVWKDQWZQRUPPZKLFKHYHULVODUJHU$
$
±/LQNVVKRXOGEHSURYLGHGZLWKLQWHUPHGLDWHZHEVWLIIHQHUVDVIROORZV$
D 6KRUW OLQNV VKRXOG EH SURYLGHG ZLWK LQWHUPHGLDWH ZHE VWLIIHQHUV VSDFHG DW LQWHUYDOV QRW$
H[FHHGLQJ WZ ± G IRU D OLQN URWDWLRQ DQJOH șS$RI UDGLDQV RU WZ ± G IRU OLQN$
URWDWLRQDQJOHV șS RIUDGLDQVRUOHVV/LQHDULQWHUSRODWLRQVKRXOGEHXVHGIRUYDOXHVRI șS$
EHWZHHQDQGUDGLDQV$
E /RQJOLQNVVKRXOGEHSURYLGHGZLWKRQHLQWHUPHGLDWHZHEVWLIIHQHUSODFHGDWDGLVWDQFHRI$
WLPHVEIURPHDFKHQGRIWKHOLQNZKHUHDSODVWLFKLQJHZRXOGIRUP$
F $,QWHUPHGLDWH$OLQNV$VKRXOG$EH$SURYLGHG$ZLWK$LQWHUPHGLDWH$ZHE$VWLIIHQHUV$PHHWLQJ$WKH$
UHTXLUHPHQWVRI D DQG E DERYH$
G ,QWHUPHGLDWHZHEVWLIIHQHUVDUHQRWUHTXLUHGLQOLQNVRIOHQJWKHJUHDWHUWKDQ0S9S$
H LQWHUPHGLDWH ZHE VWLIIHQHUV VKRXOG EH IXOO GHSWK )RU OLQNV WKDW DUH OHVV WKDQ PP LQ$
GHSWKGVWLIIHQHUVDUHUHTXLUHGRQRQO\RQHVLGHRIWKHOLQNZHE7KHWKLFNQHVVRIRQHVLGHG$
VWLIIHQHUVVKRXOGEHQRWOHVVWKDQWZ RUPPZKLFKHYHULVODUJHUDQGWKHZLGWKVKRXOGEH$
QRWOHVVWKDQ E ±WZ )RUOLQNVWKDWDUH PPLQGHSWKRU JUHDWHU VLPLODULQWHUPHGLDWH$
VWLIIHQHUVVKRXOGEHSURYLGHGRQERWKVLGHVRIWKHZHE$
$
± )LOOHW$ZHOGV$FRQQHFWLQJ$ D$OLQN$VWLIIHQHU$ WR$
WKH$ OLQN$ ZHE$ VKRXOG$ KDYH$ D$
GHVLJQ$
VWUHQJWK DGHTXDWH WR UHVLVW D IRUFH RI ȖRY$\$$VW ZKHUH $VW $LV WKH DUHD RI WKH VWLIIHQHU 7KH$
GHVLJQVWUHQJWKRIILOOHWZHOGVIDVWHQLQJWKHVWLIIHQHUWRWKHIODQJHVVKRXOGEHDGHTXDWHWRUHVLVW$
DIRUFHRIȖRY$\$VW$
$
±/DWHUDOVXSSRUWVVKRXOGEHSURYLGHGDWERWKWKHWRSDQGERWWRPOLQNIODQJHVDWWKH$
HQGVRIWKHOLQN(QGODWHUDOVXSSRUWVRIOLQNVVKRXOGKDYHDGHVLJQD[LDOUHVLVWDQFHVXIILFLHQW$
WRSURYLGHODWHUDOVXSSRUWIRUIRUFHVRIRIWKHH[SHFWHGQRPLQDOD[LDOVWUHQJWKRIWKHOLQN$
IODQJHFRPSXWHGDV$\EWI$
$
±,QEHDPVZKHUHDVHLVPLFOLQNLVSUHVHQWWKHVKHDUEXFNOLQJUHVLVWDQFHRIWKHZHE$
SDQHOVRXWVLGHRIWKHOLQNVKRXOGEHFKHFNHGWRFRQIRUPWR(16HFWLRQ$
$
0HPEHUVQRWFRQWDLQLQJVHLVPLFOLQNV$
$
7KH$PHPEHUV$QRW$FRQWDLQLQJ$VHLVPLF$OLQNV$OLNH$WKH$FROXPQV$DQG$GLDJRQDO$PHPEHUV$LI$
KRUL]RQWDO OLQNV LQ EHDPV DUH XVHG DQG DOVR WKH EHDP PHPEHUV LI YHUWLFDO OLQNV DUH XVHG$
VKRXOGEHYHULILHGLQFRPSUHVVLRQFRQVLGHULQJWKHPRVWXQIDYRXUDEOHFRPELQDWLRQRIWKHD[LDO$
IRUFHDQGEHQGLQJPRPHQWV$
$ 1 5G 0 (G 1 (G$$tZ1 (G*$ JZ
RY$: 1 (G($$ $
ZKHUH 15G 0(G$ 1(G LV WKH D[LDO GHVLJQ UHVLVWDQFH RI WKH FROXPQ RU GLDJRQDO PHPEHU LQ$
DFFRUGDQFHZLWK(1WDNLQJLQWRDFFRXQWWKHLQWHUDFWLRQZLWKWKHEHQGLQJPRPHQW0(G$
DQGWKHVKHDU9(G WDNHQDWWKHLUGHVLJQYDOXHLQWKHVHLVPLFVLWXDWLRQ1(G*LVWKHFRPSUHVVLRQ$
IRUFH$LQ$WKH$FROXPQ$RU$GLDJRQDO$PHPEHU$GXH$WR$WKH$QRQVHLVPLF$DFWLRQV$LQFOXGHG$LQ$WKH$
FRPELQDWLRQRIDFWLRQVIRUWKHVHLVPLFGHVLJQVLWXDWLRQ1(G(LVWKHFRPSUHVVLRQIRUFHLQWKH$
FROXPQRUGLDJRQDOPHPEHUGXHWRWKHGHVLJQVHLVPLFDFWLRQ ȖRY LVWKHRYHUVWUHQJWKIDFWRU ȍ$
$
$
LVDPXOWLSOLFDWLYHIDFWRUZKLFKLVWKHPLQLPXPRIWKHIROORZLQJYDOXHVWKHPLQLPXPYDOXH$
RIȍL 9SOLQNL9(GL DPRQJDOOVKRUWOLQNVWKHPLQLPXPYDOXHRIȍL 0SOLQNL0(GL $
DPRQJ DOOLQWHUPHGLDWHDQGORQJOLQNVZKHUH9(GL 0(GL DUHWKHGHVLJQYDOXHVRIWKHVKHDU$
IRUFHDQGRIWKHEHQGLQJPRPHQWLQOLQNLLQWKHVHLVPLFGHVLJQVLWXDWLRQ9SOLQNL 0SOLQNL DUH$
WKHVKHDUDQGEHQGLQJSODVWLFGHVLJQUHVLVWDQFHVRIOLQNLDVLQ$
$
&RQQHFWLRQVRIVHLVPLFOLQNV$
$
±,IWKHVWUXFWXUHLVGHVLJQHGWRGLVVLSDWHHQHUJ\LQWKHVHLVPLFOLQNVWKHFRQQHFWLRQV$
RI WKH OLQNV RU RI WKH HOHPHQW FRQWDLQLQJ WKH OLQNV VKRXOG EH GHVLJQHG IRU DFWLRQ HIIHFWV (G$
FRPSXWHGDVIROORZV$
$ (IG$tZ(IG*$ J RY$: 1IG($$ $
ZKHUH(G*LVWKHDFWLRQHIIHFWLQWKHFRQQHFWLRQGXHWRWKHQRQVHLVPLFDFWLRQVLQFOXGHGLQWKH$
FRPELQDWLRQ$RI$DFWLRQV$IRU$WKH$VHLVPLF$GHVLJQ$VLWXDWLRQ$(G($LV$WKH$DFWLRQ$HIIHFW$LQ$WKH$
FRQQHFWLRQ$GXH$WR$WKH$GHVLJQ$VHLVPLF$DFWLRQ$ȖRY$LV$WKH$RYHUVWUHQJWK$IDFWRU$ȍL$$LV$WKH$
RYHUVWUHQJWKIDFWRUFRPSXWHGLQDFFRUGDQFHZLWKIRUWKHOLQN$
$
±,QWKHFDVHRIVHPLULJLGDQGRUSDUWLDOVWUHQJWKFRQQHFWLRQVWKHHQHUJ\GLVVLSDWLRQ$
PD\EHDVVXPHGWRRULJLQDWHIURPWKHFRQQHFWLRQVRQO\7KLVLVDOORZDEOHSURYLGHGWKDWDOORI$
WKHIROORZLQJFRQGLWLRQVDUHVDWLVILHG$
D $WKH$FRQQHFWLRQV$KDYH$URWDWLRQ$FDSDFLW\$VXIILFLHQW$IRU$WKH$FRUUHVSRQGLQJ$GHIRUPDWLRQ$
GHPDQGV$
E PHPEHUVIUDPLQJLQWRWKHFRQQHFWLRQVDUHGHPRQVWUDWHGWREHVWDEOHDWWKH8/6$
F WKHHIIHFWRIFRQQHFWLRQGHIRUPDWLRQVRQJOREDOGULIWLVWDNHQLQWRDFFRXQW$
$
±:KHQSDUWLDOVWUHQJWKFRQQHFWLRQVDUHXVHGIRUWKHVHLVPLFOLQNVWKHFDSDFLW\GHVLJQ$
RIWKHRWKHUHOHPHQWVLQWKHVWUXFWXUHVKRXOGEHGHULYHGIURPWKHSODVWLFFDSDFLW\RIWKHOLQNV$
FRQQHFWLRQV$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*158/(6)2567((/%8,/',1*6:,7+&21&5(7(&25(625$
&21&5(7(:$//6$
$
± 7KH VWHHO HOHPHQWV VKDOO EH YHULILHG LQ DFFRUGDQFH ZLWK WKLV &KDSWHU DQG (1 $
ZKLOHWKHFRQFUHWHHOHPHQWVVKDOOEHGHVLJQHGLQDFFRUGDQFHZLWK&KDSWHU$
$
$ ±$
7KH$ HOHPHQWV$LQ$
ZKLFK$DQ$ LQWHUDFWLRQ$EHWZHHQ$ VWHHO$DQG$FRQFUHWH$H[LVWV$VKDOO$
EH$
YHULILHGLQDFFRUGDQFHZLWK&KDSWHU$
$
$
$
$
'(6,*158/(6)25,19(57('3(1'8/806758&785(6$
$
±,QLQYHUWHGSHQGXOXPVWUXFWXUHV GHILQHGLQ WKHFROXPQVVKRXOGEHYHULILHGLQ$
FRPSUHVVLRQ FRQVLGHULQJ WKH PRVW XQIDYRXUDEOH FRPELQDWLRQ RI WKH D[LDO IRUFH DQG EHQGLQJ$
PRPHQWV$
$
±,QWKHFKHFNV1(G0(G9(GVKRXOGEHFRPSXWHGDVLQ$
$
±7KHQRQGLPHQVLRQDOVOHQGHUQHVVRIWKHFROXPQVVKRXOGEHOLPLWHGWR Ȝ $
$
$
&+$37(5$
6(,60,&'(6,*15(48,5(0(176)25$
67((/±&21&5(7(&20326,7(%8,/',1*6$
$
6&23($1''(6,*1&21&(376$
$
6FRSH$
$
±7KLV&KDSWHUDSSOLHVWRWKHVHLVPLFGHVLJQRIHOHPHQWVRIFRPSRVLWHVWHHOFRQFUHWH$
EXLOGLQJV$
$
±7KHUXOHVJLYHQLQWKLV&KDSWHUDUHDGGLWLRQDOWRWKRVHJLYHQLQ(1$
$
±([FHSWZKHUHPRGLILHGE\WKHSURYLVLRQVRIWKLV&KDSWHUWKHSURYLVLRQVRI&KDSWHUV$
DQGDSSO\$
$
'HVLJQ&RQFHSWV$
$
±(DUWKTXDNHUHVLVWDQWFRPSRVLWHEXLOGLQJVVKDOOEHGHVLJQHGLQDFFRUGDQFHZLWKRQH$
RIWKHIROORZLQJGHVLJQFRQFHSWV VHH7DEOH $
D &RQFHSW$/RZGLVVLSDWLYHVWUXFWXUDOEHKDYLRXU$
E &RQFHSW%'LVVLSDWLYHVWUXFWXUDOEHKDYLRXUZLWKFRPSRVLWHGLVVLSDWLYH]RQHV$
F &RQFHSW&'LVVLSDWLYHVWUXFWXUDOEHKDYLRXUZLWKVWHHOGLVVLSDWLYH]RQHV$
$
7DEOH'HVLJQFRQFHSWVRIFRPSRVLWHEXLOGLQJV$
6WUXFWXUDO$ %HKDYLRXU$
'HVLJQFRQFHSW$
GXFWLOLW\FODVV$ IDFWRUT$
/RZGLVVLSDWLYHVWUXFWXUDOEHKDYLRXU$ '&/$ $
%RU&'LVVLSDWLYHVWUXFWXUDOEHKDYLRXU$ '&1$ d$
$
±,QFRQFHSW$WKHDFWLRQHIIHFWVPD\EHFDOFXODWHGRQWKHEDVLVRIDQHODVWLFDQDO\VLV$
ZLWKRXWWDNLQJLQWRDFFRXQWQRQOLQHDUPDWHULDOEHKDYLRXUEXWFRQVLGHULQJWKHUHGXFWLRQLQWKH$
PRPHQW RI LQHUWLD GXH WR WKH FUDFNLQJ RI FRQFUHWH LQ SDUW RI WKH EHDP VSDQV LQ DFFRUGDQFH$
ZLWKWKHJHQHUDOVWUXFWXUDODQDO\VLVUXOHVGHILQHGLQDQGWRWKHVSHFLILFUXOHVGHILQHGLQ$
WRUHODWHGWRHDFKVWUXFWXUDOW\SH%HKDYLRXUIDFWRUVKDOOEHWDNHQDVT $
$
$ ±$,Q$FRQFHSW$ $ WKH$
UHVLVWDQFH$RI$WKH$PHPEHUV$ DQG$ RI$
WKH$
FRQQHFWLRQV$ VKRXOG$ EH$
HYDOXDWHGLQDFFRUGDQFHZLWK(1DQG(1ZLWKRXWDQ\DGGLWLRQDOUHTXLUHPHQWV$
$
± ,Q FRQFHSWV % DQG & WKH FDSDELOLW\ RI SDUWV RI WKH VWUXFWXUH GLVVLSDWLYH ]RQHV WR$
UHVLVW HDUWKTXDNH DFWLRQV WKURXJK LQHODVWLF EHKDYLRXU LV WDNHQ LQWR DFFRXQW %HKDYLRU IDFWRU$
VKDOOEHWDNHQIURP7DEOH:KHQDGRSWLQJFRQFHSWV%RU&WKHUHTXLUHPHQWVJLYHQLQ$
WRVKRXOGEHIXOILOOHG$
$
±,QFRQFHSW&VWUXFWXUHVDUHQRWPHDQWWRWDNHDGYDQWDJHRIFRPSRVLWHEHKDYLRXULQ$
GLVVLSDWLYH$]RQHV$WKH$DSSOLFDWLRQ$RI$FRQFHSW$&$LV$FRQGLWLRQHG$E\$D$VWULFW$FRPSOLDQFH$WR$
PHDVXUHV WKDW SUHYHQW LQYROYHPHQW RI WKH FRQFUHWH LQ WKH UHVLVWDQFH RI GLVVLSDWLYH ]RQHV ,Q$
$
$
FRQFHSW & WKH FRPSRVLWH VWUXFWXUH LV GHVLJQHG LQ DFFRUGDQFH ZLWK (1 XQGHU$
QRQVHLVPLF$ORDGV$DQG$LQ$DFFRUGDQFH$ZLWK$&KDSWHU WR$UHVLVW$HDUWKTXDNH$DFWLRQ$7KH$
PHDVXUHVSUHYHQWLQJLQYROYHPHQWRIWKHFRQFUHWHDUHJLYHQLQ$
$
$±$7KH$GHVLJQ$UXOHV$IRU$GLVVLSDWLYH$FRPSRVLWH$VWUXFWXUHV$FRQFHSW$% $DLP$DW$WKH$
GHYHORSPHQWRIUHOLDEOHORFDOSODVWLFPHFKDQLVPV GLVVLSDWLYH]RQHV LQWKHVWUXFWXUHDQGRID$
UHOLDEOH JOREDO SODVWLF PHFKDQLVP GLVVLSDWLQJ DV PXFK HQHUJ\ DV SRVVLEOH XQGHU WKH GHVLJQ$
HDUWKTXDNH$DFWLRQ$)RU$HDFK$VWUXFWXUDO$HOHPHQW$RU$HDFK$VWUXFWXUDO$W\SH$FRQVLGHUHG$LQ$WKLV$
&KDSWHU UXOHV DOORZLQJ WKLV JHQHUDO GHVLJQ REMHFWLYH WR EH DFKLHYHG DUH JLYHQ LQ WR $
ZLWKUHIHUHQFHWRZKDWDUHFDOOHGWKHVSHFLILFFULWHULD7KHVHFULWHULDDLPDWWKHGHYHORSPHQWRI$
DJOREDOPHFKDQLFDOEHKDYLRXUIRUZKLFKGHVLJQSURYLVLRQVFDQEHJLYHQ$
$
±6WUXFWXUHVGHVLJQHGLQDFFRUGDQFHZLWKFRQFHSW%VKDOOEHORQJWRVWUXFWXUDOGXFWLOLW\$
FODVV$LGHQWLILHG$DV$1RUPDOI'XFWLOLW\I&ODVV$'&1 $7KLV$GXFWLOLW\$FODVV$FRUUHVSRQGV$WR$
LQFUHDVHG$DELOLW\$RI$WKH$VWUXFWXUH$WR$GLVVLSDWH$HQHUJ\$LQ$SODVWLF$PHFKDQLVPV$IRU$ZKLFK$
FRPSRVLWHVHLVPLFGHVLJQUHTXLUHPHQWVDUHJLYHQLQWKHUHPDLQGHURI&KDSWHU$
$
6WUXFWXUDOW\SHVDQG%HKDYLRXU)DFWRUV$
$
$±$&RPSRVLWH$VWHHOFRQFUHWH$VWUXFWXUHV$VKDOO$EH$DVVLJQHG$WR$RQH$RI$WKH$IROORZLQJ$
VWUXFWXUDOW\SHVDFFRUGLQJWRWKHEHKDYLRXURIWKHLUSULPDU\UHVLVWLQJVWUXFWXUHXQGHUVHLVPLF$
DFWLRQV$
D &RPSRVLWHPRPHQWUHVLVWLQJIUDPHVDUHWKRVHZLWKWKHVDPHGHILQLWLRQDQGOLPLWDWLRQVDV$
LQ D EXW LQ ZKLFK EHDPV DQG FROXPQV PD\ EH HLWKHU VWUXFWXUDO VWHHO RU FRPSRVLWH$
VWHHOFRQFUHWH$
E &RPSRVLWHFRQFHQWULFDOO\EUDFHG UDPHVDUHWKRVHZLWKWKHVDPHGHILQLWLRQDQGOLPLWDWLRQV$
DV$LQ$ E $&ROXPQV$DQG$EHDPV$PD\$EH$HLWKHU$VWUXFWXUDO$VWHHO$RU$FRPSRVLWH$VWHHO$
FRQFUHWH%UDFHVVKDOOEHVWUXFWXUDOVWHHO$
F $&RPSRVLWHI HFFHQWULFDOO\I EUDFHGI UDPHV$DUH$WKRVH$ZLWK$WKH$VDPH$GHILQLWLRQ$DQG$
FRQILJXUDWLRQV DV LQ F 7KH PHPEHUV ZKLFK GR QRW FRQWDLQ WKH OLQNV PD\ EH HLWKHU$
VWUXFWXUDO$VWHHO$RU$FRPSRVLWH$VWHHOFRQFUHWH$2WKHU$WKDQ$IRU$WKH$VODE$WKH$OLQNV$VKDOO$EH$
VWUXFWXUDO VWHHO (QHUJ\ GLVVLSDWLRQ VKDOO RFFXU RQO\ WKURXJK \LHOGLQJ LQ EHQGLQJ RU VKHDU RI$
WKHVHOLQNV$
G ,QYHUWHGSHQGXOXPVWUXFWXUHVKDYHWKHVDPHGHILQLWLRQDQGOLPLWDWLRQVDVLQ L $
H &RPSRVLWH VWUXFWXUDO V\VWHPV DUH WKRVH ZKLFK EHKDYH HVVHQWLDOO\ DV UHLQIRUFHG FRQFUHWH$
ZDOOV7KHFRPSRVLWHV\VWHPVPD\EHORQJWRRQHRIWKHIROORZLQJW\SHV$
í 7\SH FRUUHVSRQGV WR D VWHHO RU FRPSRVLWH IUDPH ZRUNLQJ WRJHWKHU ZLWK FRQFUHWH LQILOO$
SDQHOVFRQQHFWHGWRWKHVWHHOVWUXFWXUH$
í 7\SH LV$D$UHLQIRUFHG$
FRQFUHWH$ ZDOO LQ$
ZKLFK$ HQFDVHG$VWHHO$VHFWLRQV$FRQQHFWHG WR WKH$
FRQFUHWHVWUXFWXUHDUHXVHGDVYHUWLFDOHGJHUHLQIRUFHPHQW$
í 7\SH VWHHO RU FRPSRVLWH EHDPV DUH XVHG WR FRXSOH WZR RU PRUH UHLQIRUFHG FRQFUHWH RU$
FRPSRVLWHZDOOV$
I &RPSRVLWHVWHHOSODWHVKHDUZDOOVDUHWKRVHFRQVLVWLQJRIDYHUWLFDOVWHHOSODWHFRQWLQXRXV$
RYHUWKHKHLJKWRIWKHEXLOGLQJZLWKUHLQIRUFHGFRQFUHWHHQFDVHPHQWRQRQHRUERWKIDFHVRI$
WKHSODWHDQGRIWKHVWUXFWXUDOVWHHORUFRPSRVLWHERXQGDU\PHPEHUV$
$
$
±,QDOOW\SHVRIFRPSRVLWHVWUXFWXUDOV\VWHPVWKHHQHUJ\GLVVLSDWLRQWDNHVSODFHLQWKH$
YHUWLFDO VWHHO VHFWLRQV DQG LQ WKH YHUWLFDO UHLQIRUFHPHQWV RI WKH ZDOOV ,Q W\SH FRPSRVLWH$
VWUXFWXUDOV\VWHPVHQHUJ\GLVVLSDWLRQPD\DOVRWDNHSODFHLQWKHFRXSOLQJEHDPV$
$
±,ILQFRPSRVLWHVWUXFWXUDOV\VWHPVWKHZDOOHOHPHQWVDUHQRWFRQQHFWHGWRWKHVWHHO$
VWUXFWXUH&KDSWHUVDQGDSSO\$
$
±7KHEHKDYLRXUIDFWRUTVKDOOEHWDNHQIURP7DEOHRU7DEOHDVLQGLFDWHGLQ$
WKHODWWHUSURYLGHGWKDWWKHUXOHVLQWRDUHPHW$
$
7DEOH%HKDYLRXU)DFWRUV T IRUFRPSRVLWHVWUXFWXUDOW\SHV$
6WUXFWXUDOW\SH$ TI
&RPSRVLWHPRPHQWUHVLVWLQJIUDPHV\VWHP$ $
&RPSRVLWHHFFHQWULFDOO\EUDFHGIUDPHV\VWHP$ $
&RPSRVLWHFRQFHQWULFDOO\EUDFHGIUDPHV\VWHP$ $
)UDPHGRPLQDQWGXDOV\VWHP$ $
%UDFHGIUDPHGRPLQDQWGXDOV\VWHP HFFHQWULF$ $
EUDFLQJ $ $
%UDFHGIUDPHGRPLQDQWGXDOV\VWHP FRQFHQWULF$ $
EUDFLQJ $ $
,QYHUWHGSHQGXOXPV\VWHP$ $
&RPSRVLWHZDOOV 7\SHDQG7\SH $ $
&RPSRVLWHRUFRQFUHWHZDOOVFRXSOHGE\VWHHO$ $
RUFRPSRVLWHEHDPV 7\SH $ $
&RPSRVLWHVWHHOSODWHVWUXFWXUDOZDOOV$ $
$
0DWHULDOUHTXLUHPHQWV$
$
±,QGLVVLSDWLYH]RQHVWKHSUHVFULEHGFRQFUHWHFODVVVKRXOGQRWEHORZHUWKDQ&$
,IWKHFRQFUHWHFODVVLVKLJKHUWKDQ&WKHGHVLJQLVQRWZLWKLQWKHVFRSHRI(1$
$
± )RU$GXFWLOLW\$FODVV$'&1$WKH$UHLQIRUFLQJ$VWHHO$WDNHQ$LQWR$DFFRXQW$LQ$WKH$SODVWLF$
UHVLVWDQFHRIGLVVLSDWLYH]RQHVVKDOOEHRIFODVV%RU&LQDFFRUGDQFHZLWK(1$
7DEOH&$
$
±5HLQIRUFLQJVWHHORIFODVV%RU& (17DEOH& VKDOOEHXVHGLQ$
KLJKO\VWUHVVHGUHJLRQVRIQRQGLVVLSDWLYHVWUXFWXUHV7KLVUHTXLUHPHQWDSSOLHVWRERWKEDUVDQG$
ZHOGHGPHVKHV$
$
±([FHSWIRUFORVHGVWLUUXSVRUFURVVWLHVRQO\ULEEHGEDUVDUHDOORZHGDVUHLQIRUFLQJ$
VWHHOLQUHJLRQVZLWKKLJKVWUHVVHV$
$
±:HOGHGPHVKHVQRWFRQIRUPLQJWRWKHUHTXLUHPHQWVRIVKDOOQRWEHXVHGLQ$
GLVVLSDWLYH]RQHV,IVXFKPHVKHVDUHXVHGGXFWLOHUHLQIRUFHPHQWGXSOLFDWLQJWKHPHVKVKRXOG$
EHSODFHGDQGWKHLUUHVLVWDQFHFDSDFLW\DFFRXQWHGIRULQWKHFDSDFLW\DQDO\VLV$
$
$
$
±)RUVWUXFWXUDOVWHHOUHTXLUHPHQWVJLYHQLQDSSO\$
$
$
6758&785$/$1$/<6,6$
$
6FRSH$
$
7KH$IROORZLQJ$UXOHV$DSSO\$WR$WKH$DQDO\VLV$RI$WKH$VWUXFWXUH$XQGHU$HDUWKTXDNH$DFWLRQ$ZLWK$
(TXLYDOHQW 6HLVPLF /RDG 0HWKRG JLYHQ LQ DQG ZLWK WKH 0XOWL0RGH5HVSRQVH 6SHFWUXPI
$QDO\VLV0HWKRGJLYHQLQ$
$
6WLIIQHVVRIVHFWLRQV$
$
±7KHVWLIIQHVVRIFRPSRVLWHVHFWLRQVLQZKLFKWKHFRQFUHWHLVLQFRPSUHVVLRQVKDOOEH$
FRPSXWHGXVLQJDPRGXODUUDWLRQJLYHQLQ(T $
(ID$
$ Q $Z Z $ $
(IFP$
± )RU FRPSRVLWHEHDPV ZLWK VODE LQ FRPSUHVVLRQ WKH VHFRQG PRPHQW RI DUHD RI WKH$
VHFWLRQ UHIHUUHG WR DV , VKDOO EH FRPSXWHG WDNLQJ LQWR DFFRXQW WKH HIIHFWLYH ZLGWK RI VODE$
GHILQHGLQ$
$
± 7KH VWLIIQHVV RI FRPSRVLWH VHFWLRQV LQ ZKLFK WKH FRQFUHWH LV LQ WHQVLRQ VKDOO EH$
FRPSXWHGDVVXPLQJWKDWWKHFRQFUHWHLVFUDFNHGDQGWKDWRQO\WKHVWHHOSDUWVRIWKHVHFWLRQDUH$
DFWLYH$
$
±)RUFRPSRVLWHEHDPVZLWKVODELQWHQVLRQWKHVHFRQGPRPHQWRIDUHDRIWKHVHFWLRQ$
UHIHUUHGWRDV,VKDOOEHFRPSXWHGWDNLQJLQWRDFFRXQWWKHHIIHFWLYHZLGWKRIVODEGHILQHGLQ$
$
$
± 7KH VWUXFWXUH VKRXOG EH DQDO\VHG WDNLQJ LQWR DFFRXQW WKH SUHVHQFH RI FRQFUHWH LQ$
FRPSUHVVLRQ LQ VRPH ]RQHV DQG FRQFUHWH LQ WHQVLRQ LQ RWKHU ]RQHV WKH GLVWULEXWLRQ RI WKH$
]RQHVLVJLYHQLQWRIRUWKHYDULRXVVWUXFWXUDOW\SHV$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1&5,7(5,$$1''(7$,/,1*58/(6)25',66,3$7,9($
6758&785$/%(+$9,285&2002172$//6758&785$/7<3(6$
$
'HVLJQFULWHULDIRUGLVVLSDWLYHVWUXFWXUHV$
$
±'LVVLSDWLYH]RQHVVKDOOKDYHDGHTXDWH GXFWLOLW\ DQGUHVLVWDQFH7KHUHVLVWDQFHVKDOO$
EHGHWHUPLQHGLQDFFRUGDQFHZLWK(1DQG&KDSWHUIRUFRQFHSW&DQGWR(1$
$DQG$&KDSWHU$$IRU$FRQFHSW$%$VHH$ $'XFWLOLW\$LV$DFKLHYHG$E\$
FRPSOLDQFHWRGHWDLOLQJUXOHV$
$
±'LVVLSDWLYH]RQHVPD\EHORFDWHGLQWKHVWUXFWXUDOPHPEHUVRULQWKHFRQQHFWLRQV$
D ,IGLVVLSDWLYH]RQHVDUHORFDWHGLQWKHVWUXFWXUDOPHPEHUVWKHQRQGLVVLSDWLYHSDUWVDQGWKH$
FRQQHFWLRQV$RI$WKH$GLVVLSDWLYH$SDUWV$WR$WKH$UHVW$RI$WKH$VWUXFWXUH$VKDOO$KDYH$VXIILFLHQW$
RYHUVWUHQJWKWRDOORZWKHGHYHORSPHQWRIF\FOLF\LHOGLQJLQWKHGLVVLSDWLYHSDUWV$
E :KHQGLVVLSDWLYH]RQHVDUHORFDWHGLQWKHFRQQHFWLRQVWKHFRQQHFWHGPHPEHUVVKDOOKDYH$
VXIILFLHQWRYHUVWUHQJWKWRDOORZWKHGHYHORSPHQWRIF\FOLF\LHOGLQJLQWKHFRQQHFWLRQV$
$
3ODVWLFUHVLVWDQFHRIGLVVLSDWLYH]RQHV$
$
±7ZRSODVWLFUHVLVWDQFHVRIGLVVLSDWLYH]RQHVDUHXVHGLQWKHGHVLJQRIFRPSRVLWHVWHHO$
FRQFUHWH VWUXFWXUHV D ORZHU ERXQG SODVWLF UHVLVWDQFH LQGH[ SO5G DQG DQ XSSHU ERXQG$
SODVWLFUHVLVWDQFH LQGH[85G $
$
±7KHORZHUERXQGSODVWLFUHVLVWDQFHRIGLVVLSDWLYH]RQHVLVWKHRQHWDNHQLQWRDFFRXQW$
LQ GHVLJQ FKHFNV FRQFHUQLQJ VHFWLRQV RI GLVVLSDWLYH HOHPHQWV HJ 0(G 0SO5G 7KH ORZHU$
ERXQG SODVWLF UHVLVWDQFH RI GLVVLSDWLYH ]RQHV LV FRPSXWHG WDNLQJ LQWR DFFRXQW WKH FRQFUHWH$
FRPSRQHQWRIWKHVHFWLRQDQGRQO\WKHVWHHOFRPSRQHQWVRIWKHVHFWLRQZKLFKDUHFODVVLILHGDV$
GXFWLOH$
$
± 7KH$ XSSHU$ERXQG$ SODVWLF$ UHVLVWDQFH$
RI$GLVVLSDWLYH$ ]RQHV$
LV$WKH$
RQH$ XVHG$ LQ$
WKH$
FDSDFLW\ GHVLJQ$ RI$
HOHPHQWV$ DGMDFHQW WR WKH GLVVLSDWLYH$
]RQH IRU LQVWDQFH LQ WKH$ FDSDFLW\$
GHVLJQYHULILFDWLRQRIWKHGHVLJQYDOXHVRIWKHPRPHQWVRIUHVLVWDQFHRIEHDPVDUHWKH$
XSSHUERXQGSODVWLFUHVLVWDQFHV085GEZKHUHDVWKRVHRIWKHFROXPQVDUHWKHORZHUERXQG$
RQHV0SO5GF$
$
± 7KH XSSHU ERXQG SODVWLF UHVLVWDQFH LV FRPSXWHG WDNLQJ LQWR DFFRXQW WKH FRQFUHWH$
FRPSRQHQWRIWKHVHFWLRQDQGDOOWKHVWHHOFRPSRQHQWVSUHVHQWLQWKHVHFWLRQLQFOXGLQJWKRVH$
WKDWDUHQRWFODVVLILHGDVGXFWLOH$
$
±$FWLRQHIIHFWVZKLFKDUHGLUHFWO\UHODWHGWRWKHUHVLVWDQFHRIGLVVLSDWLYH]RQHVVKDOO$
EH GHWHUPLQHG RQ WKH EDVLV RI WKH XSSHU ERXQG UHVLVWDQFH RI FRPSRVLWH GLVVLSDWLYH VHFWLRQV$
HJWKHGHVLJQVKHDUIRUFHDWWKHHQGRIDGLVVLSDWLYHFRPSRVLWHEHDPVKDOOEHGHWHUPLQHGRQ$
WKHEDVLVRIWKHXSSHUERXQGSODVWLFPRPHQWRIWKHFRPSRVLWHVHFWLRQ$
$
'HWDLOLQJUXOHVIRUFRPSRVLWHFRQQHFWLRQVLQGLVVLSDWLYH]RQHV$
$
±)RUWKHGHVLJQRIZHOGVDQGEROWVDSSOLHV$
$
$
$
± ,Q IXOO\ HQFDVHG IUDPHG ZHE SDQHOV RI EHDPFROXPQ FRQQHFWLRQV WKH SDQHO ]RQH$
UHVLVWDQFH PD\ EH FRPSXWHG DV WKH VXP RI FRQWULEXWLRQV IURP WKH FRQFUHWH DQG VWHHO VKHDU$
SDQHOLIDOOWKHIROORZLQJFRQGLWLRQVDUHVDWLVILHG$
$ KE KF $ $
$ 9IZS(G$$9IZS5G$$ $
ZKHUHKEKFLVWKHDVSHFWUDWLRRIWKHSDQHO]RQHZKHUH9ZS(GLVWKHGHVLJQVKHDUIRUFHLQWKH$
ZHESDQHOGXHWRWKHDFWLRQHIIHFWVWDNLQJLQWRDFFRXQWWKHSODVWLFUHVLVWDQFHRIWKHDGMDFHQW$
FRPSRVLWH GLVVLSDWLYH ]RQHV LQ EHDPV RU FRQQHFWLRQV 9ZS5G LV WKH VKHDU UHVLVWDQFH RI WKH$
FRPSRVLWHVWHHOFRQFUHWHZHESDQHOLQDFFRUGDQFHZLWK(1$
$
±,QSDUWLDOO\HQFDVHGVWLIIHQHGZHESDQHOVDQDVVHVVPHQWVLPLODUWRWKDWLQLV$
SHUPLWWHG LI LQ DGGLWLRQ WR WKH UHTXLUHPHQWV RI RQH RI WKH IROORZLQJ FRQGLWLRQV LV$
IXOILOOHG$
D 6WUDLJKW OLQNV RI WKH W\SH GHILQHG LQ DQG FRPSO\LQJ ZLWK DQG DUH$
SURYLGHGDWDPD[LPXPVSDFLQJVO FLQWKHSDUWLDOO\HQFDVHGVWLIIHQHGZHESDQHOWKHVHOLQNV$
DUH$RULHQWHG$SHUSHQGLFXODUO\$WR$WKH$ORQJHVW$VLGH$RI$WKH$FROXPQ$ZHE$SDQHO$DQG$QR$RWKHU$
UHLQIRUFHPHQWRIWKHZHESDQHOLVUHTXLUHGRU$
E 1RUHLQIRUFHPHQWLVSUHVHQWSURYLGHGWKDWKEEEDQGKFEF$
$
± :KHQ D GLVVLSDWLYH VWHHO RU FRPSRVLWH EHDP LV IUDPLQJ LQWR D UHLQIRUFHG FRQFUHWH$
FROXPQ YHUWLFDO FROXPQ UHLQIRUFHPHQW ZLWK GHVLJQ D[LDO VWUHQJWK DW OHDVW HTXDO WR WKH VKHDU$
VWUHQJWK RI WKH FRXSOLQJ EHDP VKRXOG EH SODFHG FORVH WR WKH VWLIIHQHU RU IDFH EHDULQJ SODWH$
DGMDFHQWWRWKHGLVVLSDWLYH]RQH,WLVSHUPLWWHGWRXVHYHUWLFDOUHLQIRUFHPHQWSODFHGIRURWKHU$
SXUSRVHVDVSDUWRIWKHUHTXLUHGYHUWLFDOUHLQIRUFHPHQW7KHSUHVHQFHRIIDFHEHDULQJSODWHVLV$
UHTXLUHGWKH\VKRXOGEHIXOOGHSWKVWLIIHQHUVRIDFRPELQHGZLGWKQRWOHVVWKDQ EE±W WKHLU$
WKLFNQHVV VKRXOGEH QRW OHVV WKDQ W RU PPEE DQGW DUH UHVSHFWLYHO\ WKHEHDP IODQJH$
ZLGWKDQGWKHSDQHOZHEWKLFNQHVV$
$
± :KHQ$D$GLVVLSDWLYH$VWHHO$RU$FRPSRVLWH$EHDP$LV$IUDPLQJ$LQWR$D$IXOO\$HQFDVHG$
FRPSRVLWH$ FROXPQ$ WKH$
EHDP$ FROXPQ$ FRQQHFWLRQ$PD\ EH$GHVLJQHG$HLWKHU$ DV$D$
EHDPVWHHO$
FROXPQ$FRQQHFWLRQ$RU$D$EHDPFRPSRVLWH$FROXPQ$FRQQHFWLRQ$,Q$WKH$ODWWHU$FDVH$YHUWLFDO$
FROXPQ UHLQIRUFHPHQWV PD\ EH FDOFXODWHG HLWKHU DV LQ RU E\ GLVWULEXWLQJ WKH VKHDU$
VWUHQJWKRIWKHEHDPEHWZHHQWKHFROXPQVWHHOVHFWLRQDQGWKHFROXPQUHLQIRUFHPHQW,QERWK$
LQVWDQFHVWKHSUHVHQFHRIIDFHEHDULQJSODWHVDVGHVFULEHGLQLVUHTXLUHG$
$
± 7KH$YHUWLFDO$FROXPQ$UHLQIRUFHPHQW$VSHFLILHG$LQ$ DQG$ VKRXOG$EH$
FRQILQHGE\WUDQVYHUVHUHLQIRUFHPHQWWKDWPHHWVWKHUHTXLUHPHQWVIRUPHPEHUVGHILQHGLQ$
$
$
$
$
$
$
$
$
$
$
$
58/(6)250(0%(56$
$
*HQHUDO$
$
± &RPSRVLWH PHPEHUV ZKLFK DUH SULPDU\ VHLVPLF PHPEHUV VKDOO FRQIRUP WR (1$
DQGWRDGGLWLRQDOUXOHVGHILQHGLQWKLV6HFWLRQ$
$
±)RUWHQVLRQPHPEHUVRUSDUWVRIPHPEHUVLQWHQVLRQWKHGXFWLOLW\UHTXLUHPHQWRI(1$
VKRXOGEHPHW$
$
± 6XIILFLHQW ORFDO GXFWLOLW\ RI PHPEHUV$ ZKLFK GLVVLSDWH HQHUJ\$XQGHU FRPSUHVVLRQ$
DQGRU EHQGLQJ VKRXOG EH HQVXUHG E\ UHVWULFWLQJ WKH ZLGWKWRWKLFNQHVV UDWLRV RI WKHLU ZDOOV$
6WHHOGLVVLSDWLYH]RQHVDQGWKHQRWHQFDVHGVWHHOSDUWVRIFRPSRVLWHPHPEHUVVKRXOGPHHWWKH$
UHTXLUHPHQWV$ RI$ DQG$ 7DEOH 'LVVLSDWLYH$ ]RQHV$ RI$HQFDVHG$FRPSRVLWH$ PHPEHUV$
VKRXOGPHHWWKHUHTXLUHPHQWVRI7DEOH7KHOLPLWVJLYHQIRUIODQJHRXWVWDQGVRISDUWLDOO\$
RU IXOO\$
HQFDVHG$ PHPEHUV$ PD\ EH$ UHOD[HG LI$
VSHFLDO GHWDLOV$
DUH SURYLGHG$
DV GHVFULEHG LQ$
DQGWR$
$
7DEOH/LPLWVRIZDOOVOHQGHUQHVV$
:DOO$
6HFWLRQW\SH$
VOHQGHUQHVV$
3DUWLDOO\HQFDVHG+RU,VHFWLRQ$ $
)XOO\HQFDVHG+RU,VHFWLRQ$ $
)ODQJHRXWVWDQGOLPLWVFWI$ H$
)LOOHGUHFWDQJXODUVHFWLRQ$ $
KWOLPLWV$ H$
)LOOHGFLUFXODUVHFWLRQ$ $
GWOLPLWV$ H$
$
ZKHUHH $\ $
$
±0RUHVSHFLILFGHWDLOLQJUXOHVIRUGLVVLSDWLYHFRPSRVLWHPHPEHUVDUHJLYHQLQ$
DQG$
$
± ,QWKHGHVLJQRIDOOW\SHVRI FRPSRVLWH FROXPQVWKHUHVLVWDQFH RIWKHVWHHOVHFWLRQ$
DORQH RU WKH FRPELQHG UHVLVWDQFHV RI WKH VWHHO VHFWLRQ DQG WKHFRQFUHWH HQFDVHPHQW RU LQILOO$
PD\EHWDNHQLQWRDFFRXQW$
$
±7KHGHVLJQRIFROXPQVLQZKLFKWKHPHPEHUUHVLVWDQFHLVWDNHQWREHSURYLGHGRQO\$
E\WKHVWHHOVHFWLRQPD\EHFDUULHGRXWLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI&KDSWHU,QWKH$
FDVH$RI$GLVVLSDWLYH$FROXPQV$WKH$FDSDFLW\$GHVLJQ$UXOHV$LQ$ DQG$ VKRXOG$EH$
VDWLVILHG$
$
± )RU IXOO\ HQFDVHG FROXPQV ZLWK FRPSRVLWHEHKDYLRXU WKH PLQLPXP FURVVVHFWLRQDO$
GLPHQVLRQVEKRUGVKRXOGEHQRWOHVVWKDQPP$
$
$
$
± 7KH UHVLVWDQFH LQFOXGLQJ VKHDU UHVLVWDQFH RI QRQGLVVLSDWLYH FRPSRVLWH FROXPQV$
VKRXOGEHGHWHUPLQHGLQDFFRUGDQFHZLWKWKHUXOHVRI(1$
$
±,QFROXPQVZKHQWKHFRQFUHWHHQFDVHPHQWRULQILOODUHDVVXPHGWRFRQWULEXWHWRWKH$
D[LDODQGRUIOH[XUDOUHVLVWDQFHRIWKHPHPEHUWKHGHVLJQUXOHVLQWRDSSO\7KHVH$
UXOHVHQVXUHIXOOVKHDUWUDQVIHUEHWZHHQWKHFRQFUHWHDQGWKHVWHHOSDUWVLQDVHFWLRQDQGSURWHFW$
WKHGLVVLSDWLYH]RQHVDJDLQVWSUHPDWXUHLQHODVWLFIDLOXUH$
$
± )RU HDUWKTXDNHUHVLVWDQW GHVLJQ WKH GHVLJQ VKHDU VWUHQJWK JLYHQ LQ (1 $
7DEOHVKRXOGEHPXOWLSOLHGE\DUHGXFWLRQIDFWRURI$
$
± :KHQ IRU FDSDFLW\ GHVLJQSXUSRVHV WKH IXOO FRPSRVLWH UHVLVWDQFH RI D FROXPQ LV$
HPSOR\HGFRPSOHWHVKHDUWUDQVIHUEHWZHHQWKHVWHHODQGUHLQIRUFHGFRQFUHWHSDUWVVKRXOGEH$
HQVXUHG,ILQVXIILFLHQWVKHDUWUDQVIHULVDFKLHYHGWKURXJKERQGDQGIULFWLRQVKHDUFRQQHFWRUV$
VKRXOGEHSURYLGHGWRHQVXUHIXOOFRPSRVLWHDFWLRQ$
$
±:KHUHYHUDFRPSRVLWHFROXPQLVVXEMHFWHGWRSUHGRPLQDWHO\D[LDOIRUFHVVXIILFLHQW$
VKHDU WUDQVIHU VKRXOGEH SURYLGHG WR HQVXUH WKDW WKH VWHHO DQG FRQFUHWHSDUWV VKDUH WKH ORDGV$
DSSOLHGWRWKHFROXPQDWFRQQHFWLRQVWREHDPVDQGEUDFLQJPHPEHUV$
$
±([FHSWDWWKHLUEDVHLQVRPHVWUXFWXUDOW\SHVFROXPQVDUHJHQHUDOO\QRWGHVLJQHGWR$
EHGLVVLSDWLYH+RZHYHUEHFDXVHRIXQFHUWDLQWLHVLQWKHEHKDYLRXUFRQILQLQJUHLQIRUFHPHQWLV$
UHTXLUHGLQUHJLRQVFDOOHGFULWLFDOUHJLRQVDVVSHFLILHGLQ$
$
± DQG FRQFHUQLQJ DQFKRUDJH DQG VSOLFHV LQ WKH GHVLJQ RI UHLQIRUFHG$
FRQFUHWHFROXPQVDSSO\DOVRWRWKHUHLQIRUFHPHQWVRIFRPSRVLWHFROXPQV$
$
6WHHOEHDPVFRPSRVLWHZLWKVODE$
$
± 7KH GHVLJQ REMHFWLYH RI WKLV VXEFODXVH LV WR PDLQWDLQ WKH LQWHJULW\ RI WKH FRQFUHWH$
VODEGXULQJWKHVHLVPLFHYHQWZKLOH\LHOGLQJWDNHVSODFHLQWKHERWWRPSDUWRIWKHVWHHOVHFWLRQ$
DQGRULQWKHUHEDUVRIWKHVODE$
$
±,ILWLVQRWLQWHQGHGWRWDNHDGYDQWDJHRIWKHFRPSRVLWHFKDUDFWHURIWKHEHDPVHFWLRQ$
IRUHQHUJ\GLVVLSDWLRQVKDOOEHDSSOLHG$
$
± %HDPV$LQWHQGHG$WR$EHKDYH$DV$FRPSRVLWH$HOHPHQWV$LQ$GLVVLSDWLYH$]RQHV$RI$WKH$
HDUWKTXDNH$UHVLVWDQW$VWUXFWXUH$PD\$EH$GHVLJQHG$IRU$IXOO$RU$SDUWLDO$VKHDU$FRQQHFWLRQ$LQ$
DFFRUGDQFHZLWK(17KHPLQLPXPGHJUHHRIFRQQHFWLRQ Ș DVGHILQHGLQ(1$
$ VKRXOG$EH$QRW$OHVV$WKDQ$$DQG$WKH$WRWDO$UHVLVWDQFH$RI$WKH$VKHDU$
FRQQHFWRUV$ ZLWKLQ$ DQ\ KRJJLQJ$ PRPHQW$ UHJLRQ$QRW OHVV WKDQ WKH SODVWLF$
UHVLVWDQFH$RI WKH$
UHLQIRUFHPHQW$
$
±7KHGHVLJQUHVLVWDQFHRIFRQQHFWRUVLQGLVVLSDWLYH]RQHVLVREWDLQHGIURPWKHGHVLJQ$
UHVLVWDQFHSURYLGHGLQ(1PXOWLSOLHGE\DUHGXFWLRQIDFWRURI$
$
±)XOOVKHDUFRQQHFWLRQLVUHTXLUHGZKHQQRQGXFWLOHFRQQHFWRUVDUHXVHG$
$
±:KHQDSURILOHGVWHHOVKHHWLQJZLWKULEVWUDQVYHUVHWRWKHVXSSRUWLQJEHDPVLVXVHG$
WKH UHGXFWLRQ IDFWRU NW RI WKH GHVLJQ VKHDU UHVLVWDQFH RI FRQQHFWRUV JLYHQ E\ (1 $
$
$
VKRXOGEHIXUWKHUUHGXFHGE\PXOWLSO\LQJLWE\WKHULEVKDSHHIILFLHQF\IDFWRUNU IRUWKH$
FDVHRIVWDQGDUGWUDSH]RLGDOULEV$
$
±7RDFKLHYHGXFWLOLW\LQSODVWLFKLQJHVWKHUDWLR[GRIWKHGLVWDQFH[EHWZHHQWKHWRS$
FRQFUHWH$FRPSUHVVLRQ$ILEUH$DQG$WKH$SODVWLF$QHXWUDO$D[LV$WR$WKH$GHSWK$G RI$WKH$FRPSRVLWH$
VHFWLRQVKRXOGFRQIRUPWRWKHIROORZLQJH[SUHVVLRQ$
[$ H
$ $ FX$ $ $
GI HZ
FX$ H D$
ZKHUH HFX LV WKH XOWLPDWH FRPSUHVVLYH VWUDLQ RI FRQFUHWH VHH (1 HD LV WKH$
WRWDOVWUDLQLQVWHHODW8OWLPDWH/LPLW6WDWH$
$
±7KHUXOHLQLVGHHPHGWREHVDWLVILHGZKHQ[GRIDVHFWLRQLVOHVVWKDQWKH$
OLPLWVJLYHQLQ7DEOH$
7DEOH/LPLWYDOXHV[GIRU$
GXFWLOLW\RIEHDPVZLWKVODEV$
[G$
I\ 03D $
XSSHUOLPLW$
$ $
$ $
$
(IIHFWLYHZLGWKRIVODE$
$
± 7KH WRWDO$HIIHFWLYH$
ZLGWK$ EHII RI$
FRQFUHWH IODQJH$ DVVRFLDWHG$ ZLWK$ HDFK$ VWHHO$
ZHE$
VKRXOG EH WDNHQ DV WKH VXP RI WKH SDUWLDO HIIHFWLYH ZLGWKV EH DQG EH RI WKH SRUWLRQ RI WKH$
IODQJHRQHDFKVLGHRIWKHFHQWUHOLQHRIWKHVWHHOZHE7KHSDUWLDOHIIHFWLYHZLGWKRQHDFKVLGH$
VKRXOGEHWDNHQDVEH JLYHQLQ7DEOHEXWQRWJUHDWHUWKDQWKHDFWXDODYDLODEOHZLGWKVE$
DQGEGHILQHGLQ$
$
±7KHDFWXDOZLGWKERIHDFKSRUWLRQVKRXOGEHWDNHQDVKDOIWKHGLVWDQFHIURPWKHZHE$
WRWKHDGMDFHQWZHEH[FHSWWKDWDWDIUHHHGJHWKHDFWXDOZLGWKLVWKHGLVWDQFHIURPWKHZHEWR$
WKHIUHHHGJH$
$
± 7KH SDUWLDO HIIHFWLYH ZLGWK EH$$RI WKH VODE WR EH XVHG LQ WKH GHWHUPLQDWLRQ RI WKH$
HODVWLFDQGSODVWLFSURSHUWLHVRIWKHFRPSRVLWH7VHFWLRQVPDGHRIDVWHHOVHFWLRQFRQQHFWHGWR$
DVODEDUHGHILQHGLQ7DEOH$
$
7DEOH±,3DUWLDOHIIHFWLYHZLGWKEHRIVODEIRUHODVWLFDQDO\VLV$
$
$
7DEOH±,,3DUWLDOHIIHFWLYHZLGWKEHRIVODEIRUHYDOXDWLRQRISODVWLFPRPHQW$
UHVLVWDQFH$
6LJQRIEHQGLQJ $ EHIRU05G$
/RFDWLRQ$ 7UDQVYHUVHHOHPHQW$
PRPHQW0$ SODVWLF $
,QWHULRU$
1HJDWLYH0$ 6HLVPLFUHEDUV$ O$
FROXPQ$
([WHULRU$ OOOD\RXWVZLWKUHEDUVDQFKRUHGWRIDoDGH$
1HJDWLYH0$ O$
FROXPQ$ EHDPRUWRFRQFUHWHFDQWLOHYHUHGJHVWULS$
OOOD\RXWVZLWKUHEDUVQRWDQFKRUHGWR$
([WHULRU$
1HJDWLYH0$ IDoDGHEHDPRUWRFRQFUHWHFDQWLOHYHUHGJH$ $
FROXPQ$
VWULS$
,QWHULRU$
3RVLWLYH0$ 6HLVPLFUHEDUV$ O$
FROXPQ$
6WHHOWUDQVYHUVHEHDPZLWKFRQQHFWRUV$
([WHULRU$ &RQFUHWHVODEXSWRH[WHULRUIDFHRIFROXPQ$
3RVLWLYH0$ O$
FROXPQ$ RI+VHFWLRQZLWKVWURQJD[LVRUEH\RQG$
FRQFUHWHHGJHVWULS 6HLVPLFUHEDUV$
1RVWHHOWUDQVYHUVHEHDPRUVWHHOWUDQVYHUVH$
EHDPZLWKRXWFRQQHFWRUV$ EE$
([WHULRU$
3RVLWLYH0$ &RQFUHWHVODEXSWRH[WHULRUIDFHRIFROXPQ$ $
FROXPQ$
RI+VHFWLRQZLWKVWURQJD[LVRUEH\RQG$ KF$
HGJHVWULS 6HLVPLFUHEDUV$
([WHULRU$ EEdEHPD[$
3RVLWLYH0$ OORWKHUOD\RXWV6HLVPLFUHEDUV$
FROXPQ$ EHPD[ O$
$
)XOO\HQFDVHGFRPSRVLWHFROXPQV$
$
±,QGLVVLSDWLYHVWUXFWXUHVFULWLFDOUHJLRQVDUHSUHVHQWDWERWKHQGVRIDOOFROXPQFOHDU$
OHQJWKV LQ PRPHQW IUDPHV DQG LQ WKH SRUWLRQ RI FROXPQV DGMDFHQW WR OLQNV LQ HFFHQWULFDOO\$
EUDFHGIUDPHV7KHOHQJWKVOFURIWKHVHFULWLFDOUHJLRQV LQPHWUHV DUHVSHFLILHGE\(T $
ZLWKKFLQWKHVHH[SUHVVLRQVGHQRWLQJWKHGHSWKRIWKHFRPSRVLWHVHFWLRQ LQPHWUHV $
$
±7RVDWLVI\SODVWLFURWDWLRQGHPDQGVDQGWRFRPSHQVDWHIRUORVVRIUHVLVWDQFHGXHWR$
VSDOOLQJ RI FRYHU FRQFUHWH WKH IROORZLQJ H[SUHVVLRQ VKRXOG EH VDWLVILHG ZLWKLQ WKH FULWLFDO$
UHJLRQVGHILQHGDERYH$
EIF $
$ DZZG$ P MZQ G$HZ
V\G$ Z $ $
EIR$
LQZKLFKFRQILQHPHQWHIIHFWLYHQHVVIDFWRUDLVDVGHILQHGLQDQGWKHQRUPDOLVHGGHVLJQ$
D[LDOIRUFHȞGLVGHILQHGDV$
1 $ 1 (G$
$ Q G$ $ (G$ $ $ $
1 SO5G$ $ID \G$Z$IF FG$Z$V VG$
± 7KH VSDFLQJ V LQ PLOOLPHWUHV RI FRQILQLQJ KRRSV LQ FULWLFDO UHJLRQV VKRXOG QRW$
H[FHHG$
$ V$dZPLQ ^EIR$ GIE/$̀ $ $
I
$
$
ZKHUH ER LV WKH PLQLPXP GLPHQVLRQ RI WKH FRQFUHWH FRUH WR WKH FHQWUHOLQH RI WKH KRRSV LQ$
PLOOLPHWUHV GE/LVWKHPLQLPXPGLDPHWHURIWKHORQJLWXGLQDOUHEDUV LQPLOOLPHWUHV $
$
±7KHGLDPHWHURIWKHKRRSVVKDOOEHDWOHDVWGEZ PP$
$
±,QFULWLFDOUHJLRQVWKHGLVWDQFHEHWZHHQFRQVHFXWLYHORQJLWXGLQDOEDUVUHVWUDLQHGE\$
KRRSEHQGVRUFURVVWLHVVKRXOGQRWH[FHHGPP$
$
±,QWKHORZHUWZRVWRUH\VRIDEXLOGLQJKRRSVLQDFFRUGDQFHZLWKDQG$
VKDOOEHSURYLGHGEH\RQGWKHFULWLFDOUHJLRQVIRUDQDGGLWLRQDOOHQJWKHTXDOWRKDOIWKH$
OHQJWKRIWKHFULWLFDOUHJLRQV$
$
±,QGLVVLSDWLYHFRPSRVLWHFROXPQVWKHVKHDUUHVLVWDQFHVKRXOGEHGHWHUPLQHGRQWKH$
EDVLVRIWKHVWUXFWXUDOVWHHOVHFWLRQDORQH$
$
± 7KH$UHODWLRQVKLS$EHWZHHQ$WKH$GXFWLOLW\$FODVV$RI$WKH$VWUXFWXUH$DQG$WKH$DOORZDEOH$
VOHQGHUQHVV FWI RIWKHIODQJHRXWVWDQGLQGLVVLSDWLYH]RQHVLVJLYHQLQ7DEOH$
$
±&RQILQLQJKRRSVFDQGHOD\ORFDOEXFNOLQJLQWKHGLVVLSDWLYH]RQHV7KHOLPLWVJLYHQ$
LQ$7DEOH $IRU$IODQJH$VOHQGHUQHVV$PD\$EH$LQFUHDVHG$LI$WKH$KRRSV$DUH$SURYLGHG$DW$D$
ORQJLWXGLQDO VSDFLQJ V ZKLFK LV OHVV WKDQ WKH IODQJH RXWVWDQG VF )RU VF WKH$
OLPLWVJLYHQLQ7DEOHPD\EHLQFUHDVHGE\XSWR)RUYDOXHVRIVFOLQHDU$
LQWHUSRODWLRQPD\EHXVHG$
$
±7KHGLDPHWHUGEZRIFRQILQLQJKRRSVXVHGWRSUHYHQWIODQJHEXFNOLQJVKDOOEHQRW$
OHVVWKDQ$
EWI$$ \GI$
$ G EZ$ $ $ $
$ \GZ$
LQZKLFKEDQGWIDUHWKHZLGWKDQGWKLFNQHVVRIWKHIODQJHUHVSHFWLYHO\DQG$\GIDQG$\GZDUH$
WKHGHVLJQ\LHOGVWUHQJWKVRIWKHIODQJHDQGUHLQIRUFHPHQWUHVSHFWLYHO\$
$
3DUWLDOO\HQFDVHGPHPEHUV$
$
± ,Q GLVVLSDWLYH ]RQHV ZKHUH HQHUJ\ LV GLVVLSDWHG E\ SODVWLF EHQGLQJ RI D FRPSRVLWH$
VHFWLRQ$WKH$ORQJLWXGLQDO$VSDFLQJ$RI$WKH$WUDQVYHUVH$UHLQIRUFHPHQW$V$VKRXOG$VDWLVI\$WKH$
UHTXLUHPHQWVRIRYHUDOHQJWKJUHDWHURUHTXDOWROFUIRUGLVVLSDWLYH]RQHVDWWKHHQGRID$
PHPEHUDQGOFUIRUGLVVLSDWLYH]RQHVLQWKHPHPEHU$
$
±,QGLVVLSDWLYHPHPEHUVWKHVKHDUUHVLVWDQFHVKRXOGEHGHWHUPLQHGRQWKHEDVLVRIWKH$
VWUXFWXUDO$VWHHO$VHFWLRQ$DORQH$XQOHVV$VSHFLDO$GHWDLOV$DUH$SURYLGHG$WR$PRELOLVH$WKH$VKHDU$
UHVLVWDQFHRIWKHFRQFUHWHHQFDVHPHQW$
$
±7KHDOORZDEOHVOHQGHUQHVV FW RIWKHIODQJHRXWVWDQGLQGLVVLSDWLYH]RQHVLVDVJLYHQ$
LQ7DEOH$
$
±6WUDLJKWOLQNVZHOGHGWRWKHLQVLGHRIWKHIODQJHVDVDGGLWLRQDOWRWKHUHLQIRUFHPHQWV$
UHTXLUHGE\(1FDQGHOD\ORFDOEXFNOLQJLQWKHGLVVLSDWLYH]RQHV,QWKLVFDVHWKH$
OLPLWVJLYHQLQ7DEOHIRUIODQJHVOHQGHUQHVVPD\EHLQFUHDVHGLIWKHVHEDUVDUHSURYLGHGDW$
DORQJLWXGLQDOVSDFLQJVZKLFKLVOHVVWKDQWKHIODQJHRXWVWDQGVF)RUVFWKH$
$
$
OLPLWVJLYHQLQ7DEOHPD\EHLQFUHDVHGE\XSWR)RUYDOXHVRIVFOLQHDU$
LQWHUSRODWLRQ PD\ EH XVHG 7KH DGGLWLRQDO VWUDLJKW OLQNV VKRXOG DOVR FRQIRUP WR WKH UXOHV LQ$
DQG$
$
±7KHGLDPHWHUGEZ RIWKHDGGLWLRQDOVWUDLJKWOLQNVUHIHUUHGWRLQVKRXOGEHDW$
OHDVWPP:KHQWUDQVYHUVHOLQNVDUHHPSOR\HGWRGHOD\ORFDOIODQJHEXFNOLQJDVGHVFULEHGLQ$
GEZVKRXOGEHQRWOHVVWKDQWKHYDOXHJLYHQE\(T $
$
±7KHDGGLWLRQDOVWUDLJKWOLQNVUHIHUUHGWRLQVKRXOGEHZHOGHGWRWKHIODQJHVDW$
ERWKHQGVDQGWKHFDSDFLW\RIWKHZHOGVVKRXOGEHQRWOHVVWKDQWKHWHQVLOH\LHOGVWUHQJWKRIWKH$
VWUDLJKWOLQNV$FOHDUFRQFUHWHFRYHURIDWOHDVWPPEXWQRWH[FHHGLQJPPVKRXOGEH$
SURYLGHGWRWKHVHOLQNV$
$
± 7KH$ GHVLJQ$ RI$
SDUWLDOO\HQFDVHG$FRPSRVLWH$ PHPEHUV$ PD\$ WDNH$LQWR$DFFRXQW$WKH$
UHVLVWDQFH RI WKH VWHHO VHFWLRQ DORQH RU WKH FRPSRVLWH UHVLVWDQFH RI WKH VWHHO VHFWLRQ DQG RI$
FRQFUHWHHQFDVHPHQW$
$
±7KHGHVLJQRISDUWLDOO\HQFDVHGPHPEHUVLQZKLFKRQO\WKHVWHHOVHFWLRQLVDVVXPHG$
WR FRQWULEXWH WR PHPEHU UHVLVWDQFH PD\ EH FDUULHG RXW LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI$
&KDSWHUEXWWKHFDSDFLW\GHVLJQSURYLVLRQVRIDQGVKRXOGEHDSSOLHG$
$
)LOOHGFRPSRVLWHFROXPQV$
$
±7KHDOORZDEOHVOHQGHUQHVVGWRUKWLVDVJLYHQLQ7DEOH$
$
±7KHVKHDUUHVLVWDQFHRIGLVVLSDWLYHFROXPQVVKRXOGEHGHWHUPLQHGRQWKHEDVLVRIWKH$
VWUXFWXUDOVWHHOVHFWLRQRURQWKHEDVLVRIWKHUHLQIRUFHGFRQFUHWHVHFWLRQZLWKWKHVWHHOKROORZ$
VHFWLRQWDNHQRQO\DVVKHDUUHLQIRUFHPHQW$
$
$±$,Q$QRQGLVVLSDWLYH$PHPEHUV$WKH$VKHDU$UHVLVWDQFH$RI$WKH$FROXPQ$VKRXOG$EH$
GHWHUPLQHGLQDFFRUGDQFHZLWK(1$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25020(17)5$0(6$
$
6SHFLILFFULWHULD$
$
±DSSOLHV$
$
±7KHFRPSRVLWHEHDPVVKDOOEHGHVLJQHGIRUGXFWLOLW\DQGVRWKDWWKHLQWHJULW\RIWKH$
FRQFUHWHLVPDLQWDLQHG$
$
± 'HSHQGLQJ RQ WKH ORFDWLRQ RI WKH GLVVLSDWLYH ]RQHV HLWKHU D RU E $
DSSOLHV$
$
± 7KH UHTXLUHG KLQJH IRUPDWLRQ SDWWHUQ VKRXOG EH DFKLHYHG E\ REVHUYLQJ WKH UXOHV$
JLYHQLQDQG$
$
$QDO\VLV$
$
±7KHDQDO\VLVRIWKHVWUXFWXUHVKDOOEHSHUIRUPHGRQWKHEDVLVRIWKHVHFWLRQSURSHUWLHV$
GHILQHGLQ$
$
±,QEHDPVWZRGLIIHUHQWIOH[XUDOVWLIIQHVVHVVKRXOGEHWDNHQLQWRDFFRXQW(, IRUWKH$
SDUWRIWKHVSDQVVXEPLWWHGWRSRVLWLYH VDJJLQJ EHQGLQJ XQFUDFNHGVHFWLRQ DQG(, IRUWKH$
SDUWRIWKHVSDQVXEPLWWHGWRQHJDWLYH KRJJLQJ EHQGLQJ FUDFNHGVHFWLRQ $
$
±7KHDQDO\VLVPD\DOWHUQDWLYHO\EHSHUIRUPHGWDNLQJLQWRDFFRXQWIRUWKHHQWLUHEHDP$
DQHTXLYDOHQWVHFRQGPRPHQWRIDUHD,HTFRQVWDQWIRUWKHHQWLUHVSDQ$
$ ,IHT$ ,I Z,I$$ $
±)RUFRPSRVLWHFROXPQVWKHIOH[XUDOVWLIIQHVVLVJLYHQE\$
$ (, F (, D (FP$, F (, V $ $
:KHUH(DQG(FPDUHWKHPRGXOXVRIHODVWLFLW\IRUVWHHODQGFRQFUHWHUHVSHFWLYHO\,D,FDQG,V$
GHQRWH WKH VHFRQG PRPHQW RI DUHD RI WKH VWHHO VHFWLRQ RI WKH FRQFUHWH DQG RI WKH UHEDUV$
UHVSHFWLYHO\$
$
5XOHVIRUEHDPVDQGFROXPQV$
$
± &RPSRVLWH 7 EHDP GHVLJQ VKDOO FRQIRUP WR 3DUWLDOO\ HQFDVHG EHDPV VKDOO$
FRQIRUPWR$
$
±%HDPVVKDOOEHYHULILHGIRUODWHUDODQGODWHUDOWRUVLRQDOEXFNOLQJLQDFFRUGDQFHZLWK$
(1DVVXPLQJWKHIRUPDWLRQRIDQHJDWLYHSODVWLFPRPHQWDWRQHHQGRIWKHEHDP$
$
±DSSOLHV$
$
±&RPSRVLWHWUXVVHVVKRXOGQRWEHXVHGDVGLVVLSDWLYHEHDPV$
$
±DSSOLHV$
$
$
$
± ,Q FROXPQV ZKHUH SODVWLF KLQJHV IRUP DV VWDWHG LQ WKH YHULILFDWLRQ VKRXOG$
DVVXPHWKDW0SO5GLVUHDOLVHGLQWKHVHSODVWLFKLQJHV$
$
±7KHIROORZLQJH[SUHVVLRQVKRXOGDSSO\IRUDOOFRPSRVLWHFROXPQV$
1 (G$
$ Z $ $
1 SO5G$
±7KHUHVLVWDQFHYHULILFDWLRQVRIWKHFROXPQVVKRXOGEHPDGHLQDFFRUGDQFHZLWK(1$
$
$
±7KHFROXPQVKHDUIRUFH9(G IURPWKHDQDO\VLV VKRXOGEHOLPLWHGLQDFFRUGDQFHZLWK$
WKLUGH[SUHVVLRQLQ(T $
$
%HDPWRFROXPQFRQQHFWLRQV$
$
7KHSURYLVLRQVJLYHQLQDSSO\$
$
&RQGLWLRQIRUGLVUHJDUGLQJWKHFRPSRVLWHFKDUDFWHURIEHDPVZLWKVODE$
$
±7KHSODVWLFUHVLVWDQFHRIDEHDPVHFWLRQFRPSRVLWHZLWKVODE ORZHURUXSSHUERXQG$
SODVWLF UHVLVWDQFH RI GLVVLSDWLYH ]RQHV PD\ EH FRPSXWHG WDNLQJ LQWR DFFRXQW RQO\ WKH VWHHO$
VHFWLRQ$GHVLJQ$LQ$DFFRUGDQFH$ZLWK$&RQFHSW$&$DV$GHILQHG$LQ$ $LI$WKH$VODE$LV$WRWDOO\$
GLVFRQQHFWHGIURPWKHVWHHOIUDPHLQDFLUFXODU]RQHDURXQGDFROXPQRIGLDPHWHUEHII ZLWK$
EHIIEHLQJWKHODUJHURIWKHHIIHFWLYHZLGWKVRIWKHEHDPVFRQQHFWHGWRWKDWFROXPQ$
$
± )RU WKH SXUSRVHV RI WRWDOO\ GLVFRQQHFWHG PHDQV WKDW WKHUH LV QR FRQWDFW$
EHWZHHQ$ VODE$DQG$DQ\$ YHUWLFDO$
VLGH$
RI$ DQ\$VWHHO$
HOHPHQW HJ$FROXPQV$ VKHDU$ FRQQHFWRUV$
FRQQHFWLQJSODWHVFRUUXJDWHGIODQJHVWHHOGHFNQDLOHGWRIODQJHRIVWHHOVHFWLRQ $
$
±,QSDUWLDOO\HQFDVHGEHDPVWKHFRQWULEXWLRQRIFRQFUHWHEHWZHHQWKHIODQJHVRIWKH$
VWHHOVHFWLRQVKRXOGEHWDNHQLQWRDFFRXQW$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25&20326,7(&21&(175,&$//<$
%5$&(')5$0(6$
$
6SHFLILFFULWHULD$
$
±DSSOLHV$
$
±&ROXPQVDQGEHDPVVKDOOEHHLWKHUVWUXFWXUDOVWHHORUFRPSRVLWH$
$
±%UDFHVVKDOOEHVWUXFWXUDOVWHHO$
$
±DSSOLHV$
$
$QDO\VLV$
$
7KHSURYLVLRQVJLYHQLQDSSO\$
$
'LDJRQDOPHPEHUV$
$
7KHSURYLVLRQVJLYHQLQDSSO\$
$
%HDPVDQGFROXPQV$
$
7KHSURYLVLRQVJLYHQLQDSSO\$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25&20326,7((&&(175,&$//<$
%5$&(')5$0(6$
$
6SHFLILFFULWHULD$
$
±&RPSRVLWHIUDPHVZLWKHFFHQWULFEUDFLQJVVKDOOEHGHVLJQHGVRWKDWWKHGLVVLSDWLYH$
DFWLRQ$ ZLOO$
RFFXU$ HVVHQWLDOO\ WKURXJK \LHOGLQJ LQ EHQGLQJ$RU$
VKHDU$RI WKH OLQNV$ OO$RWKHU$
PHPEHUVVKDOOUHPDLQHODVWLFDQGIDLOXUHRIFRQQHFWLRQVVKDOOEHSUHYHQWHG$
$
±&ROXPQVEHDPVDQGEUDFHVVKDOOEHHLWKHUVWUXFWXUDOVWHHORUFRPSRVLWH$
$
±7KHEUDFHVFROXPQVDQGEHDPVHJPHQWVRXWVLGHWKHOLQNVHJPHQWVVKDOOEHGHVLJQHG$
WR UHPDLQ HODVWLF XQGHU WKH PD[LPXP IRUFHV WKDW FDQ EH JHQHUDWHG E\ WKH IXOO\ \LHOGHG DQG$
F\FOLFDOO\VWUDLQKDUGHQHGEHDPOLQN$
$
$QDO\VLV$
$
±7KHDQDO\VLVRIWKHVWUXFWXUHLVEDVHGRQWKHVHFWLRQSURSHUWLHVGHILQHGLQ$
$
±,QEHDPVWZRGLIIHUHQWIOH[XUDOVWLIIQHVVHVDUHWDNHQLQWRDFFRXQW(,IRUWKHSDUWRI$
WKHVSDQVVXEPLWWHGWRSRVLWLYH VDJJLQJ EHQGLQJ XQFUDFNHGVHFWLRQ DQG(,IRUWKHSDUWRI$
WKHVSDQVXEPLWWHGWRQHJDWLYH KRJJLQJ EHQGLQJ FUDFNHGVHFWLRQ $
$
6HLVPLFOLQNV$
$
±/LQNVVKDOOEHPDGHRIVWHHOVHFWLRQVSRVVLEO\FRPSRVLWHZLWKVODEV7KH\PD\QRW$
EHHQFDVHG$
$
±7KHUXOHVRQVHLVPLFOLQNVDQGWKHLUVWLIIHQHUVJLYHQLQDSSO\/LQNVVKRXOGEH$
RIVKRUWRULQWHUPHGLDWHOHQJWKZLWKDPD[LPXPOHQJWKH$
D ,QVWUXFWXUHVZKHUHWZRSODVWLFKLQJHVZRXOGIRUPDWOLQNHQGV$
0 SOLQN$
H Z$ $ $
9SOLQN$
E ,QVWUXFWXUHVZKHUHRQHSODVWLFKLQJHZRXOGIRUPDWRQHHQGRIDOLQN$
0 SOLQN$
H Z $ $
9SOLQN$
7KHGHILQLWLRQVRI0SOLQNDQG9SOLQNDUHJLYHQLQ)RU0SOLQNRQO\WKHVWHHOFRPSRQHQWV$
RIWKHOLQNVHFWLRQGLVUHJDUGLQJWKHFRQFUHWHVODEDUHWDNHQLQWRDFFRXQWLQWKHHYDOXDWLRQ$
$
± :KHQ WKH VHLVPLF OLQN IUDPHV LQWR D$
UHLQIRUFHG$ FRQFUHWH$ FROXPQ RU DQ HQFDVHG$
FROXPQ IDFH EHDULQJ SODWHV VKRXOG EH SURYLGHG RQ ERWK VLGHV RI WKH OLQN DW WKH IDFH RI WKH$
FROXPQDQGLQWKHHQGVHFWLRQRIWKHOLQN$
$
±&RQQHFWLRQVVKRXOGPHHWWKHUHTXLUHPHQWVRIWKHFRQQHFWLRQVRIHFFHQWULFDOO\EUDFHG$
VWHHOIUDPHVDVLQ$
$
$
$
$
0HPEHUVQRWFRQWDLQLQJVHLVPLFOLQNV$
$
± 7KH PHPEHUV QRW FRQWDLQLQJ VHLVPLF OLQNV VKRXOG FRQIRUP WR WKH UXOHV LQ $
WDNLQJ LQWR DFFRXQW WKH FRPELQHG UHVLVWDQFH RI VWHHO DQG FRQFUHWH LQ WKH FDVH RI FRPSRVLWH$
HOHPHQWVDQGWKHUHOHYDQWUXOHVIRUPHPEHUVLQDQGLQ(1$
$
$±$:KHUH$D$OLQN$LV$DGMDFHQW$WR$D$IXOO\$HQFDVHG$FRPSRVLWH$FROXPQ$WUDQVYHUVH$
UHLQIRUFHPHQWPHHWLQJWKHUHTXLUHPHQWVRIVKRXOGEHSURYLGHGDERYHDQGEHORZWKHOLQN$
FRQQHFWLRQ$
$
±,QFDVHRIDFRPSRVLWHEUDFHXQGHUWHQVLRQRQO\WKHFURVVVHFWLRQRIWKHVWUXFWXUDO$
VWHHOVHFWLRQVKRXOGEHWDNHQLQWRDFFRXQWLQWKHHYDOXDWLRQRIWKHUHVLVWDQFHRIWKHEUDFH$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)256758&785$/6<67(060$'(2)$
5(,1)25&('&21&5(7(6758&785$/:$//6&20326,7(:,7+$
6758&785$/67((/(/(0(176$
$
6SHFLILFFULWHULD$
$
±7KHSURYLVLRQVLQWKLVVXEFODXVHDSSO\WRFRPSRVLWHVWUXFWXUDOV\VWHPVEHORQJLQJLQ$
RQHRIWKHWKUHHW\SHVGHILQHGLQ H $
$
±6WUXFWXUDOV\VWHP7\SHVDQGVKDOOEHGHVLJQHGWREHKDYHDVVWUXFWXUDOZDOOVDQG$
GLVVLSDWH HQHUJ\ LQ WKH YHUWLFDO VWHHO VHFWLRQV DQG LQ WKH YHUWLFDO UHLQIRUFHPHQW 7KH LQILOOV$
VKDOOEHWLHGWRWKHERXQGDU\HOHPHQWVWRSUHYHQWVHSDUDWLRQ$
$
± ,Q VWUXFWXUDO V\VWHP 7\SH WKH VWRUH\ VKHDU IRUFHV VKDOO EH FDUULHG E\ KRUL]RQWDO$
VKHDULQWKHZDOODQGLQWKHLQWHUIDFHEHWZHHQWKHZDOODQGEHDPV$
$
±6WUXFWXUDOV\VWHP7\SHVKDOOEHGHVLJQHGWRGLVVLSDWHHQHUJ\LQWKHVWUXFWXUDOZDOOV$
DQGLQWKHFRXSOLQJEHDPV$
$
$QDO\VLV$
$
± 7KH DQDO\VLV RI WKH VWUXFWXUH VKDOO EH EDVHG RQ WKH VHFWLRQ SURSHUWLHV GHILQHG LQ$
&KDSWHUIRUFRQFUHWHZDOOVDQGLQIRUFRPSRVLWHEHDPV$
$
±,QVWUXFWXUDOV\VWHPVRI7\SHRU7\SHZKHQYHUWLFDOIXOO\HQFDVHGRUSDUWLDOO\$
HQFDVHGVWUXFWXUDOVWHHOVHFWLRQVDFWDVERXQGDU\PHPEHUVRIUHLQIRUFHGFRQFUHWHLQILOOSDQHOV$
WKHDQDO\VLVVKDOOEHPDGHDVVXPLQJWKDWWKHVHLVPLFDFWLRQHIIHFWVLQWKHVHYHUWLFDOERXQGDU\$
HOHPHQWVDUHD[LDOIRUFHVRQO\$
$
±7KHVHD[LDOIRUFHVVKRXOGEHGHWHUPLQHGDVVXPLQJWKDWWKHVKHDUIRUFHVDUHFDUULHG$
E\WKHUHLQIRUFHGFRQFUHWHZDOODQGWKDWWKHHQWLUHJUDYLW\DQGRYHUWXUQLQJIRUFHVDUHFDUULHG$
E\WKHVKHDUZDOODFWLQJFRPSRVLWHO\ZLWKWKHYHUWLFDOERXQGDU\PHPEHUV$
$
± ,Q VWUXFWXUDO V\VWHP RI 7\SH LI FRPSRVLWH FRXSOLQJEHDPV DUH XVHG DQG$
DSSO\$
$
'HWDLOLQJUXOHVIRUFRPSRVLWHZDOOV$
$
±7KHUHLQIRUFHGFRQFUHWHLQILOOSDQHOVLQ7\SHDQGWKHUHLQIRUFHGFRQFUHWHZDOOVLQ$
7\SHVDQGVKDOOPHHWWKHGHWDLOLQJUHTXLUHPHQWVRI&KDSWHU$
$
± 3DUWLDOO\ HQFDVHG VWHHO VHFWLRQV XVHG DV ERXQGDU\ PHPEHUV RI UHLQIRUFHG FRQFUHWH$
SDQHOVVKDOOEHORQJWRDFODVVRIFURVVVHFWLRQLQGLFDWHGLQ7DEOH$
$
± )XOO\$ HQFDVHG$ VWUXFWXUDO$VWHHO$VHFWLRQV$XVHG$ DV ERXQGDU\$PHPEHUV LQ$ UHLQIRUFHG$
FRQFUHWHSDQHOVVKDOOEHGHVLJQHGLQDFFRUGDQFHZLWK$
$
±3DUWLDOO\ HQFDVHGVWUXFWXUDOVWHHOVHFWLRQVXVHGDVERXQGDU\PHPEHUVRI UHLQIRUFHG$
FRQFUHWHSDQHOVVKDOOEHGHVLJQHGLQDFFRUGDQFHZLWK$
$
$
$
±+HDGHGVKHDUVWXGVRUWLHUHLQIRUFHPHQW ZHOGHGWRDQFKRUHGWKURXJKKROHVLQWKH$
VWHHOPHPEHUVRUDQFKRUHGDURXQGWKHVWHHOPHPEHU VKRXOGEHSURYLGHGWRWUDQVIHUYHUWLFDO$
DQG KRUL]RQWDO VKHDU IRUFHV EHWZHHQ WKH VWUXFWXUDO VWHHO RI WKH ERXQGDU\ HOHPHQWV DQG WKH$
UHLQIRUFHGFRQFUHWH$
$
'HWDLOLQJUXOHVIRUFRXSOLQJEHDPV$
$
±&RXSOLQJEHDPVVKDOOKDYHDQHPEHGPHQWOHQJWKLQWRWKHUHLQIRUFHGFRQFUHWHZDOO$
VXIILFLHQW$WR$
UHVLVW$WKH$PRVW$DGYHUVH$FRPELQDWLRQ$ RI$ PRPHQW$ DQG$VKHDU$JHQHUDWHG$ E\$ WKH$
EHQGLQJDQGVKHDUVWUHQJWKRIWKHFRXSOLQJEHDP7KHHPEHGPHQWOHQJWKOH VKDOOEHWDNHQWR$
EHJLQLQVLGHWKHILUVWOD\HURIWKHFRQILQLQJUHLQIRUFHPHQWLQWKHZDOOERXQGDU\PHPEHU7KH$
HPEHGPHQWOHQJWKOHVKDOOEHQRWOHVVWKDQWLPHVWKHKHLJKWRIWKHFRXSOLQJEHDP$
$
± 7KH YHUWLFDO ZDOO UHLQIRUFHPHQWV GHILQHG LQ DQG ZLWK GHVLJQ D[LDO$
VWUHQJWK$HTXDO$WR$WKH$VKHDU$VWUHQJWK$RI$WKH$FRXSOLQJ$EHDP$VKRXOG$EH$SODFHG$RYHU$WKH$
HPEHGPHQW OHQJWK RI WKHEHDP ZLWK WZRWKLUGVRI WKH VWHHO ORFDWHG RYHU WKH ILUVW KDOI RI WKH$
HPEHGPHQWOHQJWK7KLVZDOOUHLQIRUFHPHQWVKRXOGH[WHQGDGLVWDQFHRIDWOHDVWRQHDQFKRUDJH$
OHQJWK$DERYH$ DQG EHORZ WKH IODQJHV$ RI WKH$
FRXSOLQJ EHDP ,W LV SHUPLWWHG WR$ XVH$YHUWLFDO$
UHLQIRUFHPHQWSODFHGIRURWKHUSXUSRVHVVXFKDVIRUYHUWLFDOERXQGDU\PHPEHUVDVSDUWRIWKH$
UHTXLUHGYHUWLFDOUHLQIRUFHPHQW7UDQVYHUVHUHLQIRUFHPHQWVKRXOGFRQIRUPWR$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
'(6,*1$1''(7$,/,1*58/(6)25&20326,7(67((/3/$7($
6758&785$/:$//6$
$
6SHFLILFFULWHULD$
$
± &RPSRVLWH VWHHO SODWH VKHDU ZDOOV VKDOO EH GHVLJQHG WR \LHOG WKURXJK VKHDU RI WKH$
VWHHOSODWH$
$
± 7KH VWHHO SODWH VKRXOG EH VWLIIHQHG E\ RQH RU WZR VLGHG FRQFUHWH HQFDVHPHQW DQG$
DWWDFKPHQWWRWKHUHLQIRUFHGFRQFUHWHHQFDVHPHQWLQRUGHUWRSUHYHQWEXFNOLQJRIVWHHO$
$
$QDO\VLV$
$
7KHDQDO\VLVRIWKHVWUXFWXUHVKRXOGEHEDVHGRQWKHPDWHULDOVDQGVHFWLRQSURSHUWLHVGHILQHG$
LQDQG$
$
'HWDLOLQJUXOHV$
$
±,WVKDOOEHFKHFNHGWKDW$
9I(G$ Z9I5G$$ $
ZLWKWKHVKHDUUHVLVWDQFHJLYHQE\$
\G$
9I5G$ Z$ISO$ $ $
$
ZKHUH$\GLVWKHGHVLJQ\LHOGVWUHQJWKRIWKHSODWHDQG$SOLVWKHKRUL]RQWDODUHDRIWKHSODWH$
$
±7KHFRQQHFWLRQVEHWZHHQWKHSODWHDQGWKHERXQGDU\PHPEHUV FROXPQVDQGEHDPV $
DVZHOODVWKHFRQQHFWLRQVEHWZHHQWKHSODWHDQGWKHFRQFUHWHHQFDVHPHQWVKDOOEHGHVLJQHG$
VXFKWKDWIXOO\LHOGVWUHQJWKRIWKHSODWHFDQEHGHYHORSHG$
$
± 7KH$VWHHO SODWH$
VKDOO EH$
FRQWLQXRXVO\$FRQQHFWHG$ RQ$DOO$
HGJHV WR$
VWUXFWXUDO$VWHHO$
IUDPLQJDQGERXQGDU\PHPEHUVZLWKZHOGVDQGRUEROWVWRGHYHORSWKH \LHOGVWUHQJWKRIWKH$
SODWHLQVKHDU$
$
±7KHERXQGDU\PHPEHUVVKDOOEHGHVLJQHGWRPHHWWKHUHTXLUHPHQWVRI$
$
±7KHFRQFUHWHWKLFNQHVVVKRXOGEHQRWOHVVWKDQPPZKHQLWLVSURYLGHGRQRQH$
VLGHDQGPPRQHDFKVLGHZKHQSURYLGHGRQERWKVLGHV$
$
±7KHPLQLPXPUHLQIRUFHPHQWUDWLRLQERWKGLUHFWLRQVVKDOOEHQRWOHVVWKDQ$
$
±2SHQLQJVLQWKHVWHHOSODWHVKDOOEHVWLIIHQHGDVUHTXLUHGE\DQDO\VLV$
$
$
$
$
$
$
&+$37(5$
3(5)250$1&(%$6('6(,60,&'(6,*15(48,5(0(176$
)257$//%8,/',1*6$
$
$1$/<6,6352&('85(6)257$//%8,/',1*6$
$
± ,Q WKH OLQHDU HODVWLF DQDO\VLV RI WDOOEXLOGLQJV UHTXLUHG IRU GHVLJQ VWDJHV GHVFULEHG LQ$
DQG0XOWLPRGH5HVSRQVH6SHFWUXP$QDO\VLVSURFHGXUHGHVFULEHGLQRU/LQHDUI
5HVSRQVH+LVWRU\$QDO\VLVSURFHGXUHGHVFULEHGLQVKDOOEHHPSOR\HG$
$
±,QWKHQRQOLQHDUDQDO\VLVRIWDOOEXLOGLQJVUHTXLUHGIRUGHVLJQVWDJHVGHVFULEHGLQ$
DQG'LUHFW,QWHJUDWLRQSURFHGXUHVKDOOEHHPSOR\HGLQWKHWLPHGRPDLQ$
$
±,QQRQOLQHDUDQDO\VLVDPLQLPXPVHYHQHDUWKTXDNHJURXQGPRWLRQVHWVVKDOOEHXVHG$
LQDFFRUGDQFHZLWKDQGWKHDFFHOHUDWLRQUHFRUGVLQWKHWZRSHUSHQGLFXODUGLUHFWLRQVVKDOO$
EH DSSOLHG VLPXOWDQHRXVO\ DORQJ WKH SULQFLSDO D[HV RI WKH VWUXFWXUDO V\VWHP 6XEVHTXHQWO\$
GLUHFWLRQV RI DFFHOHUDWLRQ UHFRUGV VKDOOEH URWDWHGE\ R DQG WKH DQDO\VLV VKDOOEH UHSHDWHG$
'HVLJQEDVLVVHLVPLFGHPDQGVVKDOOEHFDOFXODWHGDVWKHDYHUDJHRIUHVXOWVREWDLQHGIURPWKH$
PLQLPXP DQDO\VLV$
$
± ,Q WKH OLQHDU$ RU$QRQOLQHDU$ DQDO\VLV$ RI WDOO EXLOGLQJV GDPSLQJ$UDWLR$VKDOO EH WDNHQ$
ȟ DVDPD[LPXP6HFRQGRUGHU 3±ǻ HIIHFWVVKDOOEHWDNHQLQWRDFFRXQW$
$
±,QWKHFDVHVZKHUHQHHGHGYHUWLFDOFRPSRQHQWRIWKHHDUWKTXDNHJURXQGPRWLRQPD\$
EHFRQVLGHUHGDVZHOOVXEMHFWWRDSSURYDORIWKH,QGHSHQGHQW5HYLHZHU V $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
5(48,5(0(176)25$1$/<6,602'(/,1*$
$
± 0RGHOLQJ$RI$IUDPH$HOHPHQWV$VKDOO$EH$PDGH$ZLWK$UDPHI LQLWH HOHPHQWV$LQ$OLQHDU$
DQDO\VLV0RGHOLQJLQQRQOLQHDUDQDO\VLVFDQEHPDGHZLWKSODVWLFVHFWLRQV SODVWLFKLQJHV LQ$
WKHIUDPHZRUNRIOXPSHGSODVWLFLW\ DSSURDFKRU WKURXJK$LEHUHOHPHQWVLQWKHIUDPHZRUNRI$
GLVWULEXWHG SODVWLFLW\ DSSURDFK 5HJDUGLQJ WKH SODVWLF KLQJH OHQJWK DQ DSSURSULDWH HPSLULFDO$
UHODWLRQVKLS$PD\$EH$VHOHFWHG$IURP$WKH$OLWHUDWXUH$VXEMHFW$WR$DSSURYDO$RI$WKH$,QGHSHQGHQWI
5HYLHZHU V ,QQRQOLQHDUDQDO\VLVDOWHUQDWLYHPRGHOLQJDSSURDFKHVPD\EHIROORZHGXSRQWKH$
DSSURYDO RI ,QGHSHQGHQW 5HYLHZHU V ,Q OLQHDU DQG QRQOLQHDU PRGHOV RI VWHHO IUDPHV VKHDU$
GHIRUPDWLRQLQWKHEHDPFROXPQSDQHO]RQHVKDOOEHFRQVLGHUHG$
$
±,QOLQHDUDQDO\VLVPRGHOLQJRIUHLQIRUFHGFRQFUHWHZDOOVDQGWKHLUSDUWVVKDOOEHPDGH$
ZLWK VKHOOI LQLWH HOHPHQWV ,Q VLPSOH ZDOOV IUDPH HOHPHQWV PD\ EH XVHG DV DQ DOWHUQDWLYH$
:KHQ VKHOO HOHPHQWV DUH XVHG HODVWLF PRGXOXV ( RI VKHOO HOHPHQWV FDQ EH DSSURSULDWHO\$
UHGXFHGLQEHQGLQJLQRUGHUWREHFRQVLVWHQWZLWKWKHHI HFWLYHEHQGLQJULJLGLWLHVRIWKHIUDPH$
HOHPHQWVZLWKFUDFNHGVHFWLRQV VHH $
$
± ,Q PRGHOLQJ UHLQIRUFHG FRQFUHWH ZDOOV DQG WKHLU SDUWV IRU QRQOLQHDU DQDO\VLV$LEHUI
HOHPHQWV$RU$DOWHUQDWLYH$PRGHOLQJ$RSWLRQV$PD\$EH$XVHG$LQ$WKH$IUDPHZRUN$RI$GLVWULEXWHG$
SODVWLFLW\ DSSURDFK VXEMHFW WR DSSURYDO RI WKH,QGHSHQGHQW5HYLHZHU V 6KHDU VWLIIQHVVHV RI$
UHLQIRUFHGFRQFUHWHZDOOVVKDOOEHFRQVLGHUHG$
$
±(IIHFWLYHEHQGLQJULJLGLWLHVVKDOOEHXVHGIRUUHLQIRUFHGFRQFUHWHIUDPHHOHPHQWVZLWK$
FUDFNHG VHFWLRQV ,Q WKH SUHOLPLQDU\ GHVLJQ VWDJH GHVFULEHG LQ HPSLULFDO UHODWLRQVKLSV$
JLYHQ$LQ$WKH$UHOHYDQW$OLWHUDWXUH$PD\$EH$XWLOL]HG$,Q$RWKHU$GHVLJQ$DQG$YHULILFDWLRQ$VWDJHV$
GHVFULEHG LQ$ HIIHFWLYH EHQGLQJ$ULJLGLW\$ VKDOO EH REWDLQHG IURP WKH$
VHFWLRQ¶V$PRPHQW$
FXUYDWXUHUHODWLRQVKLSDVIROORZV$
0 0
$ (, H$ Z <$ Z 1 $ $
I \$ IZ
\$
ZKHUH$0I< UHSUHVHQWVWKHVWDWHRIILUVW\LHOGLQWKHVHFWLRQ7KHFRUUHVSRQGLQJFXUYDWXUH$ IZ
\$
UHSUHVHQWVDVWDWHZKHUHHLWKHUFRQFUHWHVWUDLQDWWDLQVDYDOXHRIRUVWHHOVWUDLQUHDFKHV$
WKH \LHOG YDOXH ZKLFKHYHU RFFXUV ILUVW 7KH QRPLQDO SODVWLF PRPHQW$0 1$ FRUUHVSRQGLQJ WR$
HIIHFWLYH\LHOGFXUYDWXUH$ IZ\$LVFDOFXODWHGZLWKFRQFUHWHFRPSUHVVLYHVWUDLQUHDFKLQJRU$
VWHHO VWUDLQ DWWDLQLQJ ZKLFKHYHU RFFXUV ILUVW ,Q FDOFXODWLQJ WKH PRPHQW VWUHQJWKV RI$
FROXPQVD[LDOIRUFHVGXHWRJUDYLW\ORDGVRQO\PD\EHFRQVLGHUHG$
$
± ,Q SUHOLPLQDU\ GHVLJQ$ VWDJH GHVFULEHG LQ GHVLJQ$ VWUHQJWKV $G $RI$
FRQFUHWH$
UHLQIRUFLQJ VWHHO DQG VWUXFWXUDO VWHHO DUH GHILQHGDV WKH UHOHYDQW FKDUDFWHULVWLF VWUHQJWKV $N $
GLYLGHG E\ PDWHULDO VDIHW\ IDFWRUV ,Q RWKHU GHVLJQ DQG YHULILFDWLRQ VWDJHV LQ H[SHFWHG$
VWUHQWJKV $H$ VKDOO EH XVHG DV GHVLJQ VWUHQJWKV ZLWKRXW DQ\ PDWHULDO VDIHW\ IDFWRUV 7KH$
IROORZLQJUHODWLRQVKLSVPD\EHFRQVLGHUHGEHWZHHQWKHH[SHFWHGDQGFKDUDFWHULVWLFVWUHQJWKV$
&RQFUHWH$FH$ $FN$
5HLQIRUFLQJVWHHO$\H$ $\N$
$ 6WUXFWXUDOVWHHO 6 $\H$ $\N$ $ $
6WUXFWXUDOVWHHO 6 $\H$ $\N$
6WUXFWXUDOVWHHO 6 $\H$ $\N$
$
$
± %LOLQHDU EDFNERQH FXUYHV PD\ EH FRQVLGHUHG LQ K\VWHUHWLF UHODWLRQVKLSV RI SODVWLF$
VHFWLRQV SODVWLFKLQJHV RIIUDPHHOHPHQWV6WLIIQHVVDQGVWUHQJWKGHJUDGDWLRQHIIHFWVVKDOOEH$
FRQVLGHUHGXSRQWKHDSSURYDORI,QGHSHQGHQW5HYLHZHU V $
$
±$WIORRUOHYHOVZKHUHDEUXSWFKDQJHV LQSDUWLFXODUGRZQZDUGFKDQJHV RFFXULQODWHUDO$
VWLIIQHVV RI YHUWLFDO VWUXFWXUDO HOHPHQWV D VSHFLDO FDUH VKDOO EH SDLG IRU WKH DUUDQJHPHQW RI$
DSSURSULDWHWUDQV HUIORRUVZLWKVXIILFLHQWLQSODQHVWLIIQHVVDQGVWUHQJWK$
$
±7KHVWLIIQHVVRIWKHIRXQGDWLRQDQGWKHVRLOPHGLXPVKDOOEHFRQVLGHUHGE\DSSURSULDWH$
PRGHOVWREHDSSURYHGE\WKH,QGHSHQGHQW5HYLHZHU V :KHQQHHGHGQRQOLQHDUEHKDYLRXURI$
VRLOIRXQGDWLRQ V\VWHP PD\ EH WDNHQ LQWR DFFRXQW LQ GHVLJQ VWDJHV GHVFULEHG LQ DQG$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3(5)250$1&(%$6('6(,60,&'(6,*167$*(62)7$//%8,/',1*6$
$
3HUIRUPDQFHEDVHGGHVLJQVWDJHVRIWDOOEXLOGLQJVDUHGHVFULEHGLQWKHIROORZLQJ$
$
'HVLJQ6WDJH ,±$ 3UHOLPLQDU\'HVLJQ GLPHQVLRQLQJ ZLWK/LQHDU$QDO\VLVIRU$
&RQWUROOHG'DPDJH/LIH6DIHW\3HUIRUPDQFH2EMHFWLYHXQGHU ( /HYHO$
(DUWKTXDNH$
$
± 7KLVGHVLJQVWDJHDLPVDWSUHOLPLQDU\GLPHQVLRQLQJRIWDOOEXLOGLQJIRU/L H6DIHW\I
&RQWUROOHG'DPDJHSHUIRUPDQFHREMHFWLYH VHH7DEOH $
$
±$ OLQHDU DQDO\VLV VKDOO EH SHUIRUPHG LQ WKH IUDPHZRUN RI 6WUHQJWK%DVHG 'HVLJQ$
DSSURDFKZLWKUHGXFHGVHLVPLFORDGVDFFRUGLQJWR &KDSWHUXQGHU ( OHYHOHDUWKTXDNHIRU$
1RUPDO 2FFXSDQF\ %XLOGLQJV DFFRUGLQJ WR 7DEOH DQG XQGHU ( OHYHO HDUWKTXDNH IRU$
6SHFLDO2FFXSDQF\%XLOGLQJV$
$
±0LQLPXPEDVHVKHDUUHTXLUHPHQWJLYHQE\(T VKDOOEHDSSOLHG$
$
± 3UHOLPLQDU\GHVLJQVKDOOQRUPDOO\IROORZWKHGHVLJQUHTXLUHPHQWVRI &KDSWHUV$
RU KRZHYHU GHYLDWLRQV IURP WKRVH UHTXLUHPHQWV PD\ EH SHUPLWWHG XSRQ WKH DSSURYDO RI$
,QGHSHQGHQW5HYLHZHU V $
$
'HVLJQ6WDJH ,±% 'HVLJQZLWK1RQOLQHDU$QDO\VLVIRU/LIH6DIHW\&RQWUROOHG$
'DPDJH3HUIRUPDQFH2EMHFWLYHXQGHU ( /HYHO(DUWKTXDNH$
$
±7KHVWUXFWXUDO V\VWHPRIDWDOOEXLOGLQJZKLFKLVSUHOLPLQDULO\ GHVLJQHGLQ'HVLJQ$
6WDJH$,$±$ $VKDOO$EH$GHVLJQHG$XQGHU$WKH$VDPH$OHYHO$RI$HDUWKTXDNH$IRU$/L H 6DIHW\ I
&RQWUROOHG'DPDJHSHUIRUPDQFHREMHFWLYH$
$
±$ QRQOLQHDU DQDO\VLV VKDOO EH SHUIRUPHG DFFRUGLQJ WR WKH UHTXLUHPHQWV RI VHH$
7DEOH $FFLGHQWDOHFFHQWULFLW\HIIHFWVQHHGQRWWREHFRQVLGHUHGLQWKLVDQDO\VLV$
$
± 7KH VHLVPLF GHPDQGV REWDLQHG DFFRUGLQJ WR DV WKH DYHUDJH RI WKH UHVXOWV RI$
PLQLPXP DQDO\VLVVKDOOEHFRPSDUHGZLWKWKHIROORZLQJFDSDFLWLHV$
D ,QWHUVWRU\GULIWUDWLRRIHDFKYHUWLFDOVWUXFWXUDOHOHPHQWVKDOOQRWH[FHHGDWHDFKVWRU\$
LQHDFKGLUHFWLRQ$
E 8SSHU OLPLWV RI FRQFUHWH FRPSUHVVLYH VWUDLQ DW WKH H[WUHPH ILEHU LQVLGH WKH FRQILQHPHQW$
UHLQIRUFHPHQW$DQG$WKH$UHLQIRUFLQJ$VWHHO$VWUDLQ$DUH$JLYHQ$LQ$WKH$IROORZLQJ$IRU$UHLQIRUFHG$
FRQFUHWHVHFWLRQVVDWLVI\LQJWKHFRQILQHPHQWUHTXLUHPHQWV$
$ HZ
FJ$ HZ
V $ $
F 'HIRUPDWLRQFDSDFLWLHVRIVWUXFWXUDOVWHHOIUDPHHOHPHQWVVKDOOEHWDNHQIURP$6&(6(,$
IRU/L H6DIHW\SHUIRUPDQFHREMHFWLYH$
G 6KHDU FDSDFLWLHV RI UHLQIRUFHG FRQFUHWH VWUXFWXUDO HOHPHQWV VKDOO EH FDOFXODWHG IURP (1$
XVLQJH[SHFWHGVWUHQJWKVJLYHQLQ$
$
BBBBBBBBBBBBBBBBBBBBBBBBB$
$6&(6(,6HLVPLF5HKDELOLWDWLRQRI([LVWLQJ%XLOGLQJV$PHULFDQ6RFLHW\RI&LYLO$
(QJLQHHUVVWHGLWLRQ$
$
$
$
$
F 'HIRUPDWLRQFDSDFLWLHVRIVWUXFWXUDOVWHHOIUDPHHOHPHQWVVKDOOEHWDNHQIURP$6&(6(,$
IRU&ROODSVH3UHYHQWLRQSHUIRUPDQFHREMHFWLYH$
G 6KHDU FDSDFLWLHV RI UHLQIRUFHG FRQFUHWH VWUXFWXUDO HOHPHQWV VKDOO EH FDOFXODWHG IURP (1$
XVLQJH[SHFWHGVWUHQJWKVJLYHQLQ$
H ,QWKHHYHQWZKHUHDQ\RIWKHUHTXLUHPHQWVJLYHQLQ D WKURXJK G DERYHLVQRWVDWLVILHG$
DOOGHVLJQVWDJHVVKDOOEHUHSHDWHGZLWKDPRGLILHGVWUXFWXUDOV\VWHP$
$
7DEOH3HUIRUPDQFHEDVHGGHVLJQVWDJHVRIWDOOEXLOGLQJV$
$
$
'(6,*15(48,5(0(176)251216758&785$/$5&+,7(&785$/$
$1'0(&+$1,&$/(/(&75,&$/(/(0(176&20321(176$
$
*HQHUDO$
$
± ,QGHSHQGHQWO\$UHVSRQGLQJ$DSSHQGDJHV$EDOFRQ\$SDUDSHW$FKLPQH\$HWF $WKDW$DUH$
VXSSRUWHGE\WKHPDLQVWUXFWXUDOV\VWHPRIWKHWDOOEXLOGLQJVIDoDGHDQGSDUWLRQLQJHOHPHQWV$
DUFKLWHFWXUDO FRPSRQHQWV PHFKDQLFDO DQG HOHFWULFDO FRPSRQHQWV DQG WKHLU FRQQHFWLRQV VKDOO$
EHDQDO\VHGIRUWKHVHLVPLFHIIHFWVJLYHQLQWKLV6HFWLRQ$
$
± &RPSRQHQW DWWDFKPHQWV VKDOO EH EROWHG ZHOGHG RU RWKHUZLVH SRVLWLYHO\ IDVWHQHG$
ZLWKRXWFRQVLGHUDWLRQRIIULFWLRQDOUHVLVWDQFHSURGXFHGE\WKHHIIHFWVRIJUDYLW\$FRQWLQXRXV$
ORDG$SDWK$RI$VXIILFLHQW$VWUHQJWK$DQG$VWLIIQHVV$EHWZHHQ$WKH$FRPSRQHQW$DQG$WKH$VXSSRUWLQJ$
VWUXFWXUH VKDOO EH SURYLGHG /RFDO HOHPHQWV RI WKH VWUXFWXUH LQFOXGLQJ FRQQHFWLRQV VKDOO EH$
GHVLJQHG$ DQG$FRQVWUXFWHG IRU WKH$
FRPSRQHQW IRUFHV$ ZKHUH WKH\$FRQWURO WKH GHVLJQ$
RI WKH$
HOHPHQWVRUWKHLUFRQQHFWLRQV$
$
± ( (DUWKTXDNH/HYHO VHH VKDOOEHFRQVLGHUHGIRUWKHIROORZLQJQRQVWUXFWXUDO$
HOHPHQWVDQGWKHLUDWWDFKHPHQWVWRWKHVWUXFWXUH$
D (OHPHQWVDQGFRPSRQHQWVLQEXLOGLQJVRI6SHFLDO2FFXSDQF\&ODVV 7DEOH $
E (OHPHQWVDQGFRPSRQHQWVLQEXLOGLQJVRI1RUPDO2FFXSDQF\&ODVV 7DEOH WKDWDUH$
UHTXLUHGWRUHPDLQRSHUDWLRQDOLPPHDGLDWHO\DIWHUWKHHDUWKTXDNH$
F (OHPHQWVDQGFRPSRQHQWVUHODWHGWRKD]DUGRXVPDWHULDO$
$
± ( (DUWKTXDNH /HYHO VHH VKDOO EH FRQVLGHUHG IRU QRQVWUXFWXUDO HOHPHQWV$
DQGFRPSRQHQWVRWKHUWKDQWKRVHFODVVLILHGLQ$
$
± ,I WKH PDVV RI WKH QRQVWUXFWXUDO HOHPHQW RU FRPSRQHQW LV JUHDWHU WKDQ RI WKH$
VWRUH\ PDVV WKH HOHPHQW RU WKH FRPSRQHQW VKDOO EH FRQVLGHUHG DQ HOHPHQW RI WKH VWUXFWXUDO$
V\VWHPZLWKLWVPDVVDQGVWLIIQHVVFKDUDFWHULVWLFV$
$
(TXLYDOHQW6HLVPLF/RDGV$
$
± 7KHVHLVPLFGHVLJQIRUFH$HDSSOLHGLQWKHKRUL]RQWDOGLUHFWLRQVKDOOEHFHQWHUHGDW$
WKH$FRPSRQHQW¶V$FHQWHU$RI$JUDYLW\$DQG$GLVWULEXWHG$UHODWLYH$WR$WKH$FRPSRQHQW V$PDVV$
GLVWULEXWLRQDQGVKDOOEHGHWHUPLQHGDVIROORZV$
$
PH $H %IH
$ H$ $ $ $
TH$
ZKHUH$ PH UHSUHVHQWV WKH$
PDVV$$H LV WKH$
PD[LPXP$ DFFHOHUDWLRQ$DFWLQJ$
RQ WKH$
HOHPHQW$ RU$
FRPSRQHQW%HUHSUHVHQWVWKHDPSOLILFDWLRQIDFWRUDQGTHUHIHUVWREHKDYLRXUIDFWRUGHILQHGIRU$
WKH HOHPHQW RU FRPSRQHQW %H DQG 5H DUH JLYHQ IRU DUFKLWHFWXUDO DQG PHFKDQLFDOHOHFWULFDO$
FRPSRQHQWVLQ7DEOHDQG7DEOHUHVSHFWLYHO\$
$
± 7KHPD[LPXPDFFHOHUDWLRQDFWLQJRQWKHHOHPHQWRUFRPSRQHQWVKDOOEHGHILQHGDV$
WKHPD[LPXPYDOXHWREHREWDLQHGIURPWKHIROORZLQJ$
$
$
$
D 0D[LPXPYDOXHRIDYHUDJHWRWDODFFHOHUDWLRQVREWDLQHGIURPQRQOLQHDUDQDO\VLVDW6WDJH$
,% IRU 1RUPDO 2FFXSDQF\ &ODVV EXLOGLQJV DQG DW 6WDJH ,,, IRU 6SHFLDO 2FFXSDQF\ &ODVV$
EXLOGLQJVPD\EHGHILQHGDV$H$
E $,Q$SDUWLFXODU$FDVHV$ZKHUH$PDVV$DQG$VWLIIQHVV$FKDUDFWHULVWLFV$RI$FRPSRQHQW$RU$LWV$
DWWDFKHPHQW LV$UHTXLUHG WR EH$
FRQVLGHUHG$ $H PD\ EH$
FDOFXODWHG$
DV$
D$
VSHFWUDO$DFFHOHUDWLRQ$
FRUUHVSRQGLQJ WR$ 7H $
QDWXUDO SHULRG$ RI WKH$FRPSRQHQW IURP WKH$ORRU VSHFWUXP REWDLQHG$
WKURXJKWKHDQDO\VLVLQ E QDWXUDOSHULRG7HPD\EHFDOFXODWHGIURP$
PIH
$ 7H$ SZ $ $
NIH$
ZKHUH$NH$UHSUHVHQWV$WKH$HIIHFWLYH$VWLIIQHVV$FRHIILFLHQW$RI$WKH$QRQVWUXFWXUDO$HOHPHQW$RU$
FRPSRQHQW,QWKLVFDVHDPSOLILFDWLRQIDFWRUGHILQHGLQ(T VKDOOEHWDNHQDV%H $
$
±(TXLYDOHQWVHLVPLFORDGFDOFXODWHGZLWK(T VKDOOQRWEHOHVVWKDQWKHPLQLPXP$
ORDGGHILQHGEHORZ$
$ PLQ$H$ PIH 6I6'$$ $
± (TXLYDOHQW VHLVPLF ORDG JLYHQ LQ (T VKDOO EH DSSOLHG LQGHSHQGHQWO\ LQ ERWK$
KRUL]RQWDO$HDUWKTXDNH$GLUHFWLRQV$LQ$FRPELQDWLRQ$ZLWK$WKH$GHDG$ORDG$VHUYLFH$ORDGV$RI$WKH$
HOHPHQWRUFRPSRQHQWSOXVDYHUWLFDOVHLVPLFORDGHTXDOWR r PH 66'$$
$
± )RU HOHPHQWV RU FRPSRQHQWV VXVSHQGHG IURP WKH VWUXFWXUDO V\VWHP ZLWK FKDLQV$
FDEOHVHWF DVHLVPLFORDGHTXDOWRWLPHVWKHZHLJKWRIWKHHOHPHQWRUFRPSRQHQWVKDOOEH$
DSSOLHGVLPXOWDQHRXVO\LQERWKKRUL]RQWDODQGYHUWLFDOGLUHFWLRQV$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7DEOH$PSOLILFDWLRQDQG%HKDYLRXU)DFWRUVIRUDUFKLWHFWXUDOFRPSRQHQWV$
$
UFKLWHFWXUDOHOHPHQWRUFRPSRQHQW$ %HI THI
$
1RQVWUXFWXUDOSODLQPDVRQU\LQWHUQDOZDOOVDQGSDUWLWLRQV$ $ $
1RQVWUXFWXUDORWKHULQWHUQDOZDOOVDQGSDUWLWLRQV$ $ $
&DQWLOHYHUHOHPHQWVXQEUDFHGRUEUDFHGEHORZWKHLUFHQWUHVRIJUDYLW\$
$ $
SDUDSHWVFDQWLOHYHULQWHUQDOZDOOVODWHUDOO\VXSSRUWHGFKLPQH\VHWF $
&DQWLOHYHUHOHPHQWVEUDFHGDERYHWKHFHQWUHRIJUDYLW\ FDQWLOHYHU$
$ $
LQWHUQDOZDOOVFKLPQH\VHWF $
([WHUQDOZDOOVDQGFRQQHFWLRQV$ $ $
:RRGSDQHOV$ $ $
3HQWKRXVHVLQGHSHQGHQWIURPVWUXFWXUDOV\VWHP$ $ $
6XVSHQGHGFHLOLQJV$ $ $
6WRUDJHFDELQHWVDQGODERUDWRU\HTXLSPHQW$ $ $
FFHVVIORRUV$ $ $
6LJQVDQGELOOERDUGV$ $ $
2WKHUULJLGFRPSRQHQWV$ $ $
2WKHUIOH[LEOHFRPSRQHQWV$ $ $
$
7DEOH$PSOLILFDWLRQDQG%HKDYLRXU)DFWRUVIRUPHFKDQLFDOHOHFWULFDOFRPSRQHQWV$
$
0HFKDQLFDOHOHFWULFDOHOHPHQWRUFRPSRQHQW$ %HI 5HI
$
%RLOHUVDQG)XUQDFHV$ $ $
3UHVVXUHYHVVHOVRQVNLUWVDQGIUHHVWDQGLQJ$ $ $
6WDFNV$ $ $
&DQWLOHYHUHGFKLPQH\V$ $ $
2WKHU$ $ $
3LSLQJ6\VWHPV$ $ $
+LJKGHIRUPDELOLW\HOHPHQWVDQGDWWDFKPHQWV$ $ $
/LPLWHGGHIRUPDELOLW\HOHPHQWVDQGDWWDFKPHQWV$ $ $
/RZGHIRUPDELOLW\HOHPHQWVDQGDWWDFKPHQWV$ $ $
+9$&6\VWHP&RPSRQHQW$ $ $
9LEUDWLRQLVRODWHG$ $ $
1RQYLEUDWLRQLVRODWHG$ $ $
0RXQWHGLQOLQHZLWKGXFWZRUN$ $ $
2WKHU$ $ $
(OHYDWRU&RPSRQHQWV$ $ $
(VFDODWRU&RPSRQHQWV$ $ $
*HQHUDO(OHFWULFDO$ $ $
'LVWULEXWLRQV\VWHPV EXVGXFWVFRQGXLWFDEOHWUD\ $ $ $
(TXLSPHQW$ $ $
/LJKWLQJ)L[WXUHV$ $ $
$
$
$
$
$
$
/LPLWDWLRQRIGLVSODFHPHQWV$
$
± ,QFDVHVZKHUHQRQVWUXFWXUDOHOHPHQWVRUFRPSRQHQWVDUHDWWDFKHGWRWZRGLIIHUHQW$
SRLQWVRIWKHVDPHVWUXFWXUHH[SHULHQFLQJGLIIHUHQWGLVSODFHPHQWVRUDWWDFKHGWRWZRGLIIHUHQW$
VWUXFWXUDO V\VWHPV WKH HIIHFWV RI UHODWLYH GLVSODFHPHQWV EHWZHHQ WKH SRLQWV RI DWWDFKHPHQW$
VKDOOEHFRQVLGHUHG5HODWLYHGLVSODFHPHQWVVKDOOEHFDOFXODWHGIURPWKHUHVXOWVRIQRQOLQHDU$
DQDO\VLVRIWKHVWUXFWXUDOV\VWHPDW'HVLJQ6WDJH,%IRU1RUPDO2FFXSDQF\&ODVVEXLOGLQJV$
VHH RUDW'HVLJQ6WDJH,,,IRU6SHFLDO2FFXSDQF\&ODVVEXLOGLQJV VHH $
$
± 5HODWLYH GLVSODFHPHQWV RI QRQVWUXFWXUDO HOHPHQWV RU FRPSRQHQWV įH$ VKDOO QRW EH$
PRUHWKDQWKHYDOXHJLYHQLQ(T $
į$
H$dZ
KI[ KI\$$ L$ PD[$
į$ $ $
KL$
ZKHUH$K[$DQG$K\$UHSUHVHQW$WKH$YHUWLFDO$GLVWDQFHV$RI$WRS$DQG$ERWWRP$DWWDFKHPHQW$SRLQWV$
UHVSHFWLYHO\ RI WKH QRQVWUXFWXUDO HOHPHQW RU FRPSRQHQW PHDVXUHG IURP WKH UHOHYDQW IORRU$
OHYHO įL PD[ KL LV WKH DOORZDEOH VWRUH\ GULIW UDWLR VSHFLILHG LQ IRU 1RUPDO 2FFXSDQF\I
&ODVVEXLOGLQJVDQGLQIRU6SHFLDO2FFXSDQF\&ODVVEXLOGLQJV$
$
± 5HODWLYH GLVSODFHPHQWV RI QRQVWUXFWXUDO HOHPHQWV RU FRPSRQHQWV DWWDFKHG WR WZR$
GLIIHUHQWVWUXFWXUDOV\VWHPVVKDOOEHFDOFXODWHGDVWKHDEVROXWHVXPRIWKHPD[LPXPUHODWLYH$
GLVSODFHPHQWV$ DW$ SRLQWV$RI$ DWWDFKHPHQW$ DQG$ LW$VKDOO$
QRW$EH$PRUH$ WKDQ$ WKH$
YDOXH$
JLYHQ$
LQ$
(T $
į L$ $ į$
H dZ
PD[$
į$ KI[$ KI\ L%$PD[$$ $
KL$ KL%$
ZKHUH įL$ PD[ KL$YH įL% PD[ KL%UHSUHVHQWWKHDOORZDEOHVWRUH\GULIWUDWLRVRIWKHILUVWDQG$
VHFRQG$VWUXFWXUDO$V\VWHPV$UHVSHFWLYHO\$VSHFLILHG$LQ$ IRU$1RUPDO 2FFXSDQF\ &ODVV$
EXLOGLQJVDQGLQIRU6SHFLDO2FFXSDQF\&ODVVEXLOGLQJV$
$
1RQVWUXFWXUDOIDoDGHHOHPHQWVDQGFRQQHFWLRQV$
$
*ODVVRUFXUWDLQZDOOIDoDGHHOHPHQWVRIWDOOEXLOGLQJVVKDOOEHVXEMHFWHGWRVWDWLFDQGG\QDPLF$
WHVWVGHVFULEHGLQWKHIROORZLQJVWDQGDUGV$
D ³5HFRPPHQGHG 6WDWLF 7HVW 0HWKRGI RU (YDOXDWLQJ &XUWDLQ :DOO DQG 6WRUH URQW 6\VWHPVI
6XEMHFWHGI WRI 6HLVPLFI DQGI :LQGI ,QGXFHGI 6WRU\I 'UL WV´$ 0$$$ PHULFDQ$
UFKLWHFWXUDO0DQXIDFWXULQJ$VVRFLDWLRQ6FKDXPEXUJ,OOLQRLV$
E ³5HFRPPHQGHG '\QDPLF 7HVW 0HWKRGI RU 'HWHUPLQLQJ WKH 6HLVPLF 'UL W &DXVLQJ *ODVVI
)DOORXWI URP D :DOO 6\VWHP´$ 0$ $ PHULFDQ$ UFKLWHFWXUDO$0DQXIDFWXULQJ$
VVRFLDWLRQ6FKDXPEXUJ,OOLQRLV$
$
,1'(3(1'(17'(6,*15(9,(:$
$
'HVLJQ$ RI$
WDOO$
EXLOGLQJV$
DFFRUGLQJ$WR$
WKLV$&RGH$VKDOO$
EH$
SHHU$UHYLHZHG$DQG$HQGRUVHG$E\$
LQGHSHQGHQWUHYLHZHUVLQDOOGHVLJQVWDJHVVWDUWLQJIURPWKHVWUXFWXUDOV\VWHPLQFHSWLRQVWDJH$
7KHDGPLQLVWUDWLYHVWUXFWXUHRIWKHLQGHSHQGHQWGHVLJQUHYLHZSURFHVVZLOOEHHVWDEOLVKHGE\$
'XEDL0XQLFLSDOLW\$
$
$
$
&+$37(5$
6758&785$/+($/7+021,725,1*6<67(06$
)257$//%8,/',1*6$
$
+HDOWKPRQLWRULQJV\VWHPVVKDOOEHHVWDEOLVKHGLQDOOWDOOEXLOGLQJVLQRUGHUWRPRQLWRUWKHUHDO$
EHKDYLRXURIWDOOEXLOGLQJVWUXFWXUDOV\VWHPVWRLPSURYHWKHH[LVWLQJVHLVPLFDQGZLQGFRGHV$
DQGWRSUHGLFWWKHOHYHORIVHLVPLFGDPDJHLQDWDOOEXLOGLQJLPPHGLDWHO\DIWHUWKHRFXUUHQFHRI$
DQ$
HDUWKTXDNH$ $W\SLFDO$ KHDOWK$
PRQLWRULQJ$V\VWHP$ VKDOO$
KDYH$
D$PLQLPXP$ $
DFFHOHUDWLRQ$
VHQVRUVGLVWULEXWHGLQWKHEXLOGLQJDVVKRZQLQ)LJ$
D $ FFHOHUDWLRQ$
VHQVRUV$VKDOO EH$
V\QFURQL]HG$ DQG$FRQQHFWHG WR$
D ELW GLJLWDO$ UHFRUGLQJ$
V\VWHP$HTXLSSHG$ZLWK$D *36$ FDUG 5HFRUGLQJ$V\VWHP VKDOO$
UHFRUG WKH EXLOGLQJ$ YLEUDWLRQV$
FRQWLQXRXVO\DQGWUDQVIHUWKHGDWDLQUHDOWLPHWRDSUHVFULEHGFHQWUHYLDLQWHUQHWPRGHPRU$
VLPLODUFKDQQHOV6XIILFLHQWEDWWHU\DQGGLVNFDSDFLW\VKDOOEHSURYLGHGDJDLQVWHOHFWULFLW\DQG$
FRPPXQLFDWLRQ VKRUWDJHV ZKLFK ZLOO KHOS WKH V\VWHP RSHUDWH DQG VWRUH GDWD IRU DW OHDVW D$
SHULRGRIRQHZHHN$
E 7HFKQLFDO$VSHFLILFDWLRQ$
RI$
VHQVRUV$
DQG$
UHFRUGLQJ$
V\VWHPV$
VKDOO EH SURYLGHG E\ 'XEDL$
0XQLFLSDOLW\$
F 9LEUDWLRQ UHFRUGV VKDOO EH WUDQVIHUUHG LQ UHDO WLPH WR WKH 6WUXFWXUDO +HDOWK 0RQLWRULQJI
&HQWUH RI 'XEDL 0XQLFLSDOLW\ 7KH UHFRUGV VKDOO EH VWRUHG DW WKLV FHQWUH DV ZHOO DV E\ WKH$
EXLOGLQJRZQHU$
+RUL]RQWDOVHQVRUV$
$
$
9HUWLFDOVHQVRUV$
5HFRUGER[$
DWDQ\VWRUH\ $
$
)LJXUH$
$
$
$
$
11(;$$
62,/&/$66,),&$7,21)25$
63(&,),&$7,212)6(,60,&*5281'027,21$
$
6RLOFODVVLILFDWLRQSURFHGXUH$
$
$±$)RU$WKH$SXUSRVH$RI$VSHFLI\LQJ$HODVWLF$UHVSRQVH$VSHFWUXP$WKH$VLWH$VRLO$VKDOO$EH$
FODVVLILHG$DFFRUGLQJ WR$7DEOH$ :KHUH WKH$ VRLO SURSHUWLHV JLYHQ LQ$ 7DEOH$ DUH$ QRW$
NQRZQ LQ VXIILFLHQW GHWDLO WR GHWHUPLQH WKH VRLO FODVV LW VKDOO EH SHUPLWWHG WR DVVXPH 6RLO$
&ODVV'XQOHVV'XEDL0XQLFLSDOLW\GHWHUPLQHVWKDW6RLO&ODVV(RU)FRXOGDSSO\DWWKHVLWHRU$
LQWKHHYHQWWKDW6LWH&ODVV(RU)LVHVWDEOLVKHGE\JHRWHFKQLFDOGDWD$
$
7DEOH$6RLOFODVVLILFDWLRQSDUDPHWHUV$
6RLO&ODVV$ YIV$ PV $ 1 RU1IFK$ VIX$ N3D $
$+DUGURFN$ !$ 1$$ 1$$
%5RFN$ ±$ 1$$ 1$$
&9HU\GHQVHVRLODQGVRIWURFN$ ±$ !$ $
'6WLIIVRLO$ ±$ ±$ ±$
(6RIWFOD\VRLO$ $ $ $
$ RUDQ\SURILOHZLWKPRUHWKDQPRIVRLOZLWK$
3ODVWLFLW\LQGH[3,!$
0RLVWXUHFRQWHQWZt$
8QGUDLQHGVKHDUVWUHQJWK VIX$N3D$
)6RLOVUHTXLULQJVLWHUHVSRQVH$ 6RLOVYXOQHUDEOHWRSRWHQWLDOIDLOXUHRUFROODSVH$
DQDO\VLV$ XQGHUVHLVPLFORDGLQJVXFKDVOLTXHILDEOHVRLOV$
TXLFNDQGKLJKO\VHQVLWLYHFOD\VFROODSVLEOH$
ZHDNO\FHPHQWHGVRLOV$
3HDWDQGRUKLJKO\RUJDQLFFOD\VZLWKPRUH$
WKDQP$
9HU\KLJKSODVWLFLW\FOD\VZLWKPRUHWKDQP
DQG3,!$
9HU\WKLFNVRIWPHGLXPVWLIIFOD\VZLWKPRUH$
WKDQPDQGVXN3D$
$
$
±7KHSDUDPHWHUVXVHGLQ 7DEOH$WRGHILQHWKH6RLO&ODVVDUHEDVHGRQWKHXSSHU$
P$ RI WKH$
VLWH SURILOH 3URILOHV$
FRQWDLQLQJ GLVWLQFWO\ GLIIHUHQW$
VRLO$
DQG$
URFN OD\HUV$ VKDOO EH$
VXEGLYLGHG LQWR WKRVH OD\HUV GHVLJQDWHG E\ D QXPEHU WKDW UDQJHV IURP WR Q DW WKH ERWWRP$
ZKHUHWKHUHDUHDWRWDORIQGLVWLQFWOD\HUVLQWKHXSSHUP7KHV\PEROLWKHQUHIHUVWRDQ\$
RQH$RI$WKH$OD\HUV$EHWZHHQ$$DQG$Q$3DUDPHWHUV$FKDUDFWHUL]LQJ$XSSHU$$P$LV$GHILQHG$DV$
IROORZV$
Q$
¦Z
G L$
D $ YV$ ZQ$
L $
$ $ I
GL
¦Z
L $ YVL$
$
ZKHUHYVL VKHDUZDYHYHORFLW\LQPV$
$
$
Q$
GL WKLFNQHVVRIDQ\OD\HU EHWZHHQDQGP ¦Z
G L LVHTXDOWRP$
L $
$
Q
¦Z
G L$
E $ 1I ZQ$
L $
$ $ I
G L
¦Z
L $1 L$
I
ZKHUH$1L $6WDQGDUG$3HQHWUDWLRQ$5HVLVWDQFH$DV$GLUHFWO\$PHDVXUHG$LQ$WKH$ILHOG$ZLWKRXW$
FRUUHFWLRQVDQGVKDOOQRWEHWDNHQJUHDWHUWKDQEORZVIW:KHUHUHIXVDOLVPHWIRUDURFN$
1L VKDOO EH WDNHQ$
OD\HU$ DV EORZVIW$
1L DQG$ (T $ DUH IRU$
GL LQ$ FRKHVLRQOHVV$
VRLO$
FRKHVLYHVRLODQGURFNOD\HUV$
$
GI
F $ 1 FK$ ZP$ V$ $ $ I
GL
¦Z
L $ 1 L$
$
ZKHUH1LDQGGLLQ(T $ DUHIRUFRKHVLRQOHVVVRLOOD\HUVRQO\$
P$
GV WRWDOWKLFNQHVVRIFRKHVLRQOHVVVRLOOD\HUVLQWKHWRSP ¦ GL$ ZGV $
L $
$
GI
G $ VX$ ZN$ F$ $ I
G L
¦Z
L $VXL$
$
ZKHUHVXL XQGUDLQHGVKHDUVWUHQJWKLQN3DDQGVKDOOQRWEHWDNHQJUHDWHUWKDQN3D$
N$
GF WRWDOWKLFNQHVVRIFRKHVLYHVRLOOD\HUVLQWKHWRSP ¦ G L$ ZG F $
L $
6WHSVIRUFODVVLI\LQJ6RLO&ODVVHV&'()$
$
6WHS &KHFNIRUWKHIRXUFDWHJRULHVRI6RLO&ODVV) VHH 7DEOH$ UHTXLULQJVLWHVSHFLILF$
HYDOXDWLRQ,IWKHVLWHFRUUHVSRQGVWRDQ\RIWKHVHFDWHJRULHVFODVVLI\WKHVLWHDV6RLO&ODVV)$
DQGFRQGXFWDVLWHVSHFLILFHYDOXDWLRQ$
$
6WHS &KHFNIRUWKHH[LVWHQFHRIDWRWDOWKLFNQHVVRIVRIWFOD\!PZKHUHDVRIWFOD\OD\HU$
LVGHILQHGE\VXN3DZDQG3,!,IWKHVHFULWHULDDUHVDWLVILHGFODVVLI\WKHVLWH$
DV6RLO&ODVV($
$
6WHS &DWHJRUL]H WKH VLWH XVLQJ RQH RI WKH IROORZLQJ WKUHH PHWKRGV ZLWK$YV 1 DQG$VX I
FRPSXWHGLQDOOFDVHVDVVSHFLILHGLQ$$
$
D YV IRUWKHWRSP YV PHWKRG $
E 1 IRUWKHWRSP $ 1 PHWKRG $
F 1 FK$IRUFRKHVLRQOHVVVRLOOD\HUV 3, LQWKHWRSPDQGDYHUDJH VX IRUFRKHVLYHVRLO$
OD\HUV 3,! LQWKHWRSP VX PHWKRG $
$
$
,I$VIX$PHWKRGLVXVHGDQG$1IFK$ DQG$
VX$ FULWHULDGLIIHUWKHFDWHJRU\ZLWKWKHVRIWHUVRLOVVKDOOEH$
VHOHFWHG IRUH[DPSOHXVH6RLO&ODVV(LQVWHDGRI' $
$
&ODVVLI\LQJ6RLO&ODVVHV$%$
$
±$ VVLJQPHQWRI6RLO&ODVV%VKDOOEHEDVHGRQWKHVKHDUZDYHYHORFLW\IRUURFN)RU$
FRPSHWHQW$URFN$ZLWK$PRGHUDWH$IUDFWXULQJ$DQG$ZHDWKHULQJ$HVWLPDWLRQ$RI$WKLV$VKHDU$ZDYH$
YHORFLW\ VKDOO EH SHUPLWWHG )RU PRUH KLJKO\ IUDFWXUHG DQG ZHDWKHUHG URFN WKH VKHDU ZDYH$
YHORFLW\VKDOOEHGLUHFWO\PHDVXUHGRUWKHVLWHVKDOOEHDVVLJQHGWR6RLO&ODVV&$
$
±$ VVLJQPHQW$RI$6RLO$&ODVV$ VKDOO$EH$VXSSRUWHG$E\$HLWKHU$VKHDU$ZDYH$YHORFLW\$
PHDVXUHPHQWVRQVLWHRUVKHDUZDYHYHORFLW\PHDVXUHPHQWVRQSURILOHVRIWKHVDPHURFNW\SH$
LQ WKH VDPH IRUPDWLRQ ZLWK DQ HTXDO RU JUHDWHU GHJUHH RI ZHDWKHULQJ DQG IUDFWXULQJ :KHUH$
KDUG URFN FRQGLWLRQV DUH NQRZQ WR EH FRQWLQXRXV WR D GHSWK RI P VXUILFLDO VKHDU ZDYH$
YHORFLW\PHDVXUHPHQWVPD\EHH[WUDSRODWHGWRDVVHVV YV I
I
± 6RLO&ODVVHV$DQG%VKDOOQRWEHXVHGZKHUHWKHUHLVPRUHWKDQPRIVRLOEHWZHHQ$
WKHURFNVXUIDFHDQGWKHERWWRPRIWKHVSUHDGIRRWLQJRUPDWIRXQGDWLRQ$
$
$
$