LQJ VWDWLRQV DUH VFDQQHG LQ WKH GLUHFWLRQ RI ORZ IUH TXHQFLHVWRKLJKIUHTXHQFLHVRQO\ $XWRPDWLFWXQLQJPD\QRWIXQFWLRQSURSHUO\LIWKHVWD WLRQUHFHSWLRQLVZHDNHQHGE\GLVWDQFHIURPWKHVWD WLRQRUSUR[LPLW\WRWDOOEXLOGLQJVDQGKLOOV
T 6HOHFWLQJSUHVHWVWDWLRQV 3UHVHWWLQJDVWDWLRQZLWKDSUHVHWEXWWRQDOORZV\RX WR VHOHFW WKDW VWDWLRQ LQ D VLQJOH RSHUDWLRQ 8S WR VL[ $0)0DQG)0VWDWLRQVHDFKPD\EHSUHVHW
T +RZWRSUHVHWVWDWLRQV 3UHVVWKH ³)0$0´VHOHFWLRQEXWWRQWR VHOHFW$0 )0RU)0UHFHSWLRQ 3UHVVWKH³6&$1´EXWWRQRUWXQHWKHUDGLRPDQ XDOO\XQWLOWKHGHVLUHGVWDWLRQIUHTXHQF\LVGLVSOD\HG 3UHVVRQHRIWKHSUHVHWEXWWRQVIRUDWOHDVW ±&217,18('±
$XGLR
VHFRQGVWRVWRUHWKHIUHTXHQF\7KHIUHTXHQF\RIWKH VWDWLRQZLOOIODVKRQFHRQWKHGLVSOD\DWWKLVWLPH,IWKH EXWWRQLVSUHVVHGIRUOHVVWKDQVHFRQGVWKHSUH FHGLQJVHOHFWLRQZLOOUHPDLQLQPHPRU\
127( y ,IWKHFRQQHFWLRQEHWZHHQWKHUDGLRDQGEDWWHU\ LVEURNHQIRUDQ\UHDVRQVXFKDVYHKLFOHPDLQWH QDQFHRUUDGLRUHPRYDODOOVWDWLRQVVWRUHGLQWKH SUHVHWEXWWRQVDUHFOHDUHG,IWKLVRFFXUVLWLVQHF HVVDU\WRUHVHWWKHSUHVHWEXWWRQV y ,IDPRELOHWHOHSKRQHLVSODFHGQHDUWKHUDGLRLW PD\FDXVHWKHUDGLRWRHPLWQRLVHZKHQLWUHFHLYHV FDOOV7KLVQRLVHGRHVQRWLQGLFDWHDUDGLRIDXOW
„ %XLOWLQ&'FKDQJHURSHUDWLRQ
(9) (9)
(10) (10)
(11) (11)
(12) (12)
(13) (13)
(14) (14)
(17) (17)
(16) (16)
(15) (15)
UB5072CB UB5072CB
$XGLR
(MHFWEXWWRQ 'LVFVORW &'&'SOD\HUVHOHFWLRQEXWWRQ 5HSHDWEXWWRQ 5DQGRPEXWWRQ /2$'EXWWRQ 'LVFVHOHFWEXWWRQV 7UDFNVHOHFWLRQEXWWRQV 6&$1EXWWRQ
±&217,18('±
$XGLR
127( 0DNH VXUH WR DOZD\V LQVHUW D GLVF ZLWK WKH ODEHO VLGH XS ,I D GLVF LV LQVHUWHG ZLWK WKH ODEHO VLGH GRZQLWPLJKWEHHMHFWHGRUWKHSOD\HUPLJKWVKXW RII
T +RZWRLQVHUWD&'V
V ,QVHUWLQJD&' 3UHVV ³/2$'´ EXWWRQ ,I WKH PDJD]LQH LQ WKH SOD\HUKDVDQLGOHSRVLWLRQZKHUH\RXFDQLQVHUWDGLVF WKH³',6&´LQGLFDWRUDVVRFLDWHGZLWKWKHLGOHSRVLWLRQ ZLOOEOLQN ,IQRLQGLFDWRUEOLQNVLWPHDQVWKDWWKHUHLVQRLGOHSR VLWLRQLQWKHPDJD]LQH $VVRRQDVWKH³',6&´LQGLFDWRUEHJLQVWREOLQNWKH ³,1´ZLOODSSHDURQGLVSOD\IRUDSHULRGRIVHFRQGV ,QVHUWDGLVFGXULQJWKHSHULRG 7KHGLVFZLOO EHWKHQ DXWRPDWLFDOO\ GUDZQ LQ DQG WKH SOD\HU ZLOO EHJLQ WR SOD\EDFNWKHILUVWQXPEHURIWKHGLVF
y 7RLQVHUWPRUHGLVFVLQVXFFHVVLRQUHSHDW6WHSV DQG7KHPDJD]LQHZLOOEHORDGHGZLWKGLVFVLQWKH DVFHQGLQJRUGHURISRVLWLRQQXPEHU ,I\RXGRQRWLQVHUWDQ\GLVFLQVHFRQGVDIWHU\RX KDYHSUHVVHGWKH³/2$'´EXWWRQWKHSOD\HUZLOOEHJLQ WRSOD\EDFNWKHILUVWQXPEHURIWKHODVWGLVF\RXKDYH LQVHUWHG
y 7KH GLVF LQGLFDWRU VWHDGLO\ OLJKWV XS LI D GLVF LV DO UHDG\ LQVHUWHG LQ WKH FRUUHVSRQGLQJ SRVLWLRQ RI WKH PDJD]LQH y :KLOHWKHSOD\HULVLQWKHORDGLQJPRGHLI\RXSUHVV WKH³)0´VHOHFWLRQEXWWRQRU³$0´VHOHFWLRQEXWWRQ WKHSOD\HUZLOOHQWHUWKHVWDQGE\PRGH3UHVVWKH ³&'´EXWWRQWRVWDUWSOD\EDFN
V ,QVHUWLQJDGLVFLQDGHVLUHGSRVLWLRQ 3UHVV WKH ³/2$'´ EXWWRQ ,I WKH PDJD]LQH LQ WKH SOD\HUKDVDQLGOHSRVLWLRQZKHUH\RXFDQLQVHUWDGLVF WKH³',6&´LQGLFDWRUDVVRFLDWHGZLWKWKHLGOHSRVLWLRQ ZLOOEOLQN 7KHSRVLWLRQVLQWKH PDJD]LQH WKHLQGLFDWRU RIZKLFK VWHDGLO\OLJKWVXSDUHDOUHDG\ORDGHGZLWKGLVFV 3UHVV WKH GLVF VHOHFW EXWWRQ DW WKH SRVLWLRQ ZKHUH \RX ZDQW WR LQVHUW D GLVF 7KH DVVRFLDWHG ³',6&´ LQGLFDWRU ZLOO EOLQN DQG WKH ³,1´ ZLOO EH GLV SOD\HG ,I \RX LQVHUW D GLVF GXULQJ WKH VHFRQG SHULRG ZKLOHWKH³,1´LVRQGLVSOD\WKHGLVFZLOOEHDXWRPDWL FDOO\GUDZQLQDQGWKHSOD\HUZLOOVWDUWSOD\EDFNRIWKH GLVFEHJLQQLQJZLWKWKHILUVWQXPEHU
y 7RLQVHUWPRUHGLVFVLQVXFFHVVLRQUHSHDW6WHSV DQG y :KLOHWKHSOD\HULVLQWKHORDGLQJPRGHLI\RXSUHVV WKH³)0´VHOHFWLRQEXWWRQRU³$0´VHOHFWLRQEXWWRQ
WKHSOD\HUZLOOHQWHUVWDQGE\PRGH3UHVVWKH³&'´ EXWWRQWRVWDUWSOD\EDFN
V /RDGLQJDOOWKHPDJD]LQH)XOOGLVFORDGLQJ
PRGH
,I\RXFRQWLQXHWRSUHVVWKH³/2$'´EXWWRQIRUPRUH WKDQVHFRQGVWKHSOD\HUZLOOSURGXFHEHHSVRXQG DQGZLOOHQWHUWKHIXOOGLVFORDGLQJPRGH $³',6&´LQGLFDWRUZLOOEOLQNDQGWKH³,1´ZLOOEHRQ GLVSOD\IRUDSHULRGRIVHFRQGV,IDGLVFLVVXFFHVV IXOO\ORDGHGGXULQJWKLVSHULRGWKH³',6&´LQGLFDWRUZLOO VWRSEOLQNLQJDQGZLOOVWHDGLO\OLJKW :KHQ WKH ORDGLQJ RI D GLVF LV FRPSOHWH WKH QH[W ³',6&´LQGLFDWRUZLOOEOLQN7KHQUHSHDW6WHS :KHQWKHPDJD]LQHLVILOOHGZLWKGLVFVE\UHSHDWLQJ 6WHSV DQG WKH SOD\HU ZLOO VWDUW SOD\EDFN RI WKH GLVFVEHJLQQLQJZLWKWKHRQHLQVHUWHGILUVW ,I\RXIDLOWRLQVHUWDQ\GLVFGXULQJHDFKVHFRQGLQ WHUYDOWKHIXOOGLVFORDGLQJPRGHZLOOEHFDQFHOHGDQG WKHSOD\HUZLOOVWDUWSOD\EDFNRIWKHGLVFLQVHUWHGILUVW
T +RZWRSOD\EDFND&'RUPDNHDSDXVH
V :KHQWKHUHLVQR&'LQVHUWHG ,QVHUWD&'E\UHIHUULQJWR³+RZWRLQVHUWD&'V´ :KHQD&'LVORDGHGWKHSOD\HUZLOOVWDUWSOD\EDFNRI WKH&'EHJLQQLQJZLWKWKHILUVWQXPEHU
$XGLR
V :KHQWKHUHDUH&'VORDGHG 3UHVVDGHVLUHGRQHRIWKHGLVFVHOHFWEXWWRQVWKH ³',6&´LQGLFDWRURIZKLFKVWHDGLO\OLJKWVXS7KHSOD\HU ZLOOWKHQVWDUWSOD\EDFNRIWKHVHOHFWHG&'EHJLQQLQJ ZLWKWKHILUVWQXPEHU
T 7RVHOHFWDVRQJIURPLWVEHJLQQLQJ
V )RUZDUGGLUHFWLRQ ´EXWWRQWRVNLSWRWKHEHJLQ %ULHIO\SUHVVWKH³ QLQJRIWKHQH[WWUDFN(DFKWLPHWKHEXWWRQLVSUHVVHG WKHLQGLFDWHGWUDFNQXPEHUZLOOLQFUHDVH
V %DFNZDUGGLUHFWLRQ %ULHIO\SUHVVWKH³ ´EXWWRQWRVNLSWRWKHEHJLQ QLQJ RI WKH FXUUHQW WUDFN (DFK WLPH WKH EXWWRQ LV SUHVVHGWKHLQGLFDWHGWUDFNQXPEHUZLOOGHFUHDVH
T )DVWIRUZDUGLQJDQGIDVWUHYHUVH
V )DVWIRUZDUGLQJ 3UHVVWKH³ VHFRQGWRIDVWIRUZDUGWKHGLVF 5HOHDVHWKHEXWWRQWRVWRSIDVWIRUZDUGLQJ
´EXWWRQFRQWLQXRXVO\IRUPRUHWKDQ
V )DVWUHYHUVH 3UHVVWKH³ VHFRQGWRIDVWUHYHUVHWKHGLVF 5HOHDVHWKHEXWWRQWRVWRSIDVWUHYHUVH
´EXWWRQFRQWLQXRXVO\IRUPRUHWKDQ
±&217,18('±
$XGLR
T 5HSHDWSOD\EDFN 3UHVVWKH³537´EXWWRQZKLOHDVRQJLVSOD\LQJWR SOD\ WKH VRQJ UHSHDWHGO\ 7KH ³537´ LQGLFDWRU ZLOO FRPHRQDQGWKHVRQJZLOOEHSOD\HGFRQWLQXRXVO\7R FDQFHOWKHUHSHDWPRGHSUHVVWKHEXWWRQDJDLQ7KHQ WKH ³537´ LQGLFDWRU JRHV RXW DQG QRUPDO SOD\EDFN PRGHLVUHVWRUHG
T 5DQGRPSOD\EDFN 3UHVV WKH ³5$1'´ EXWWRQ ZKLOH D GLVF LV EHLQJ SOD\HGEDFNWRSOD\DOOVRQJVRQWKHGLVFLQDUDQGRP RUGHU 7KH ³5$1'´ LQGLFDWRU ZLOO FRPH RQ DQG DOO VRQJVRQWKHGLVFZLOOEHSOD\HGLQDUDQGRPRUGHU 7RFDQFHOWKHUDQGRPPRGHSUHVVWKHEXWWRQDJDLQ 7KHQWKH³5$1'´LQGLFDWRUJRHVRXWDQGQRUPDOSOD\ EDFNPRGHLVUHVWRUHG
T 6FDQ :KHQWKH³6&$1´EXWWRQLVSUHVVHGZKLOHWKHGLVF LVEHLQJSOD\HGEDFN\RXFDQKHDUWKHILUVWVHFRQGV RI HDFK WUDFN WR VHDFK IRU WKH GHVLUHG SURJUDP 7R FRQWLQXH OLVWHQLQJ WR WKH SURJUDP SUHVV WKH ³6&$1´ EXWWRQ DJDLQ $IWHU DOO WUDFNV RQ WKH GLVF KDYH EHHQ VFDQQHGQRUPDOSOD\EDFNPRGHLVUHVWRUHG
T +RZWRXQORDG&'VIURPWKHSOD\HU
V (MHFWLQJD&'IURPWKHSOD\HU 2IWKHGLVFVORDGHG\RXFDQVHOHFWDQGUHPRYHRQO\ RQHGLVF 3UHVVWKHGLVFVHOHFWEXWWRQRIWKHGLVFZKRVH ³',6&´LQGLFDWRULV21 3UHVVWKHHMHFWEXWWRQ7KHQWKH³',6&´LQGLFD WRU DVVRFLDWHG ZLWK WKH GLVF \RX KDYH VHOHFWHG ZLOO EOLQNDQGWKHGLVFZLOOEHHMHFWHG 7RUHPRYHPRUHGLVFVLQVXFFHVVLRQUHSHDW6WHSV DQG
V (MHFWLQJDOOGLVFVIURPWKHSOD\HU$OOGLVFHMHF
WLRQPRGH
,I \RX FRQWLQXH WR SUHVV WKH HMHFW EXWWRQ WKH SOD\HUZLOOSURGXFHEHHS VRXQGDQGZLOOHQWHUWKHDOO GLVFHMHFWLRQPRGH 5HPRYHWKHGLVFWKDWKDVEHHQHMHFWHG7KHRWKHU GLVFVORDGHGZLOOWKHQEHHMHFWHGRQHDIWHUDQRWKHU,I \RXGRQRWUHPRYHWKHGLVFWKDWKDVEHHQHMHFWHGWKH ³$OOGLVFHMHFWLRQPRGH´ZLOOEHFDQFHOHG
127( $YRLG GULYLQJ WKH YHKLFOH ZLWK D &' VWLFNLQJ RXW EHFDXVHYLEUDWLRQPLJKWPDNHLWIDOORXW
,QGDVK&'DXWRFKDQJHULIHTXLSSHG
(1)
(2)
$XGLR
'LVFVORW 'LVFLQGLFDWRUVGLVF1RWR 'LVFVHOHFWEXWWRQVGLVF1RWR
(MHFWEXWWRQ
(4)
(3)
HS5016BB
±&217,18('±
$XGLR
PDUN
LGHQWLILHG E\
y 'R QRW DWWHPSW WR LQVHUW WZR RU PRUH GLVFV LQWRWKHVORWDWDWLPH'RLQJVRFDQFDXVHPH FKDQLFDOGDPDJHWRWKH&'FKDQJHU y 8VH RQO\ PXVLF &'V y 'R QRW XVH &'V OLVWHG EHORZ ZKLFK FRXOG FDXVHGDPDJHWRWKH&'SOD\HU y LQFKFPFRPSDFWGLVF y $Q\GLVFZLWKDSHHORIIRUVHDORQLW y $Q\GLVFZLWKVFUDWFKHVDQGRUGXVW y %HQWGLVF y &OHDQLQJGLVF y &' DFFHVVRU\ (J LQFK FP GLVF DGDSWHU
y 'R QRW LQVHUW RU UHPRYH DQ\ GLVF ZKHQ WKH
DXWRPDWLFWUDQVPLVVLRQVHOHFWRUOHYHULVLQWKH
SDUNSRVLWLRQWKHVHOHFWRUOHYHULQWKDWSRVLWLRQ
FDQ LQWHUIHUH ZLWK GLVF LQVHUWLRQ RU UHPRYDO
FDXVLQJ VFUDWFKHV RQ WKH GLVF VXUIDFH IRU $7
YHKLFOHV
T 7RLQVHUWDGLVF 3UHVVRQHRIWKHGLVFVHOHFWEXWWRQVQXPEHUHG IURP WR IRU ZKLFK WKH GLVF LQGLFDWRU OLJKW LV
³2))´ 7KHGLVFLQGLFDWRUOLJKWVDUHORFDWHGGLUHFWO\DERYHWKH FRUUHVSRQGLQJGLVFVHOHFWEXWWRQV 7KH LQGLFDWRU ZLOO EHJLQ EOLQNLQJ 7KH EOLQNLQJ ZLOO ODVWIRUVHFRQGV 'XULQJWKLVSHULRGLQVHUWDGHVLUHGGLVFDQGWKHGLVF ZLOOEHJLQWRSOD\,IDQ\GLVFLVQRWLQVHUWHGGXULQJWKLV SHULRGWKH³'LVFVORW´GRRUZLOOFORVH5HSHDWVWHS %H VXUH WR KROG D GLVF ZLWK WKH ODEHO VLGH WKH VLGH ZKHUHWLWOHVDUHSULQWHGXS 7RLQVHUWDQRWKHUGLVFUHSHDWVWHSDQGFKRRV LQJDGLIIHUHQWGLVFVHOHFWEXWWRQ
T 7RLQVHUWVL[GLVFVDWDWLPH 3UHVVDQGKROGWKHGLVFVHOHFWEXWWRQQXPEHUXQ WLO DOO GLVF LQGLFDWRUV EHJLQ EOLQNLQJ DERXW VHF RQGV 7KHLQGLFDWRUVZLOOEOLQNIRUVHFRQGV'XULQJWKLV SHULRGLQVHUWGHVLUHGVL[GLVFV :KHQDOOGLVFVDUHORDGHGWKHILUVWGLVFZLOOEHJLQWR SOD\,IQRGLVFLVLQVHUWHGZLWKLQWKLVVHFRQGVWKH HQWLUHGLVFORDGVHTXHQFHZLOOEHFDQFHOHG
T 7RUHPRYHDGLVF 3UHVVWKHGHVLUHGRQHRIWKHGLVFVHOHFWEXWWRQV QXPEHUHG IURP WR IRU ZKLFK WKH GLVF LQGLFDWRU OLJKWLVRQ
3UHVVWKHHMHFWEXWWRQ7KHVHOHFWHGGLVFZLOOEH HMHFWHGDQGWKHLQGLFDWRUOLJKWZLOOEHJLQEOLQNLQJ 7R UHPRYH DQRWKHU GLVF UHSHDW VWHS DQG FKRRVLQJDGLIIHUHQWGLVFVHOHFWEXWWRQ 7R UHPRYH GLVFV ZKHQ WKH LJQLWLRQ VZLWFK LV LQ WKH ³/RFN´ SRVLWLRQ SUHVV WKH HMHFW EXWWRQ DQG WKH ILUVW GLVFZLOOEHHMHFWHG3UHVVWKHHMHFWEXWWRQDJDLQDQG WKHQH[WGLVFZLOOEHHMHFWHGDQGVRRQ$WWKLVWLPHWKH GLVFVHOHFWEXWWRQVDUHGLVDEOHG
T 7RUHPRYHDOOGLVFVDWRQHWLPH 3UHVVDQGKROGWKHHMHFWEXWWRQXQWLODOO³'LVF´LQ GLFDWRUV EHJLQ EOLQNLQJ DERXW VHFRQGV DQG WKH ILUVWGLVFZLOOEHHMHFWHG :KHQ WKH GLVF LV UHPRYHG WKH QH[W RQH ZLOO EH HMHFWHGDQGVRRQ
T 7RUHSODFHDSOD\LQJGLVFZLWKDQRWKHU 6LPSO\SUHVVWKHGHVLUHGRQHRIGLVFVHOHFWEXWWRQV QXPEHUHG IURP WR RU SUHVV WKH ³',6& 83´ RU ³',6& '2:1´ EXWWRQ RQ WKH UDGLR XQLW WR VHOHFW WKH GHVLUHGGLVFDQGWKHGLVFZLOOEHJLQWRSOD\
T 'LVFLQGLFDWRUV /LWZKHQWKHFRUUHVSRQGLQJVWRUDJHWUD\LVRFFXSLHG E\DGLVF %OLQNLQJ 'LVF SOD\HU LV HLWKHU LQ ORDGLQJ HMHFW RU FKDQJLQJPRGH
$XGLR
2))1RGLVFLVORDGHGRUWKHLJQLWLRQVZLWFKLVLQWKH ³/2&.´SRVLWLRQ
T )XQFWLRQFRQWURO 5HIHUWR&'SOD\HUFRQWURORSHUDWLQJLQVWUXFWLRQVGH VFULEHGLQWKH³$0)0UDGLRZLWK&'SOD\HU´VHFWLRQ
±&217,18('±
y 7RUHPRYHDGLVFIURPWKHFDVHSUHVVWKHFHQWHURI WKHFDVHDQGKROGERWKHGJHVRIWKHGLVF,IWKHGLVF VXUIDFHLVWRXFKHGGLUHFWO\FRQWDPLQDWLRQFRXOGFDXVH SRRUWRQHTXDOLW\'RQRWWRXFKWKHGLVFVXUIDFH y 8VHDFOHDQGLVFZKHQHYHUSRVVLEOH,IWKHUHDUHGH SRVLWVZLSHWKHGLVFVXUIDFHIURPWKHFHQWHURXWZDUG ZLWKDGU\VRIWFORWK%HVXUHQRWWRXVHDKDUGFORWK WKLQQHUEHQ]HQHDOFRKROHWF y 'RQRWXVHDQ\GLVFWKDWLVVFUDWFKHGGHIRUPHGRU FUDFNHG$OVRGRQRWXVHDQ\GLVFWKDWKDVDQRQVWDQ GDUGVKDSHIRUH[DPSOHDKHDUWVKDSH0DOIXQFWLRQV RUSUREOHPVPLJKWUHVXOW y $GLVFLVYXOQHUDEOHWRKHDW1HYHUNHHSLWHLWKHULQ SODFHVH[SRVHGWR GLUHFW VXQOLJKW QHDU KHDWHUV RU LQ YHKLFOHVSDUNHGLQWKHVXQRUKRWGD\V
$XGLR
3UHFDXWLRQVWRREVHUYHZKHQKDQ GOLQJDFRPSDFWGLVF&'
8VH RQO\ FRPSDFW GLVFV &'V WKDW KDYH WKH PDUN VKRZQ EHORZ &'5:V FDQQRW EH XVHG $OVR VRPH &'5VFDQQRWEHSOD\HG
HS5017AA
y ,Q FROG DQGRU UDLQ\ ZHDWKHU GHZ FDQ IRUP LQVLGH WKH &' SOD\HU SUHYHQWLQJ QRUPDO RSHUDWLRQ ,I WKLV KDSSHQV HMHFWWKH &'DQGZDLWIRU WKHSOD\HUWRGU\ RXW y 6NLSSLQJPD\RFFXUZKHQWKH&'SOD\HULVVXEMHFW HGWRVHYHUHYLEUDWLRQIRUH[DPSOHZKHQWKHYHKLFOH LVGULYHQRQDURXJKVXUIDFH
$XGLR
±&217,18('±
HS5018BA
,QWHULRUDQGH[WHULRUHTXLSPHQWV
,QWHULRUOLJKW 'RPHOLJKW 0DSOLJKW 6XQYLVRUV 9DQLW\PLUURULIHTXLSSHG 6WRUDJHFRPSDUWPHQW *ORYHER[ &HQWHUFRQVROH 5HDUFHQWHUFRQVROH &RLQFRPSDUWPHQW &XSKROGHU )URQWFXSKROGHU 5HDUSDVVHQJHU¶VFXSKROGHU &LJDUHWWHOLJKWHUVRFNHW 8VHZLWKDFLJDUHWWHOLJKWHU 8VLQJDVDQDFFHVVRU\SRZHURXWOHW $VKWUD\ &RQYHQLHQFHKRRN &RDWKRRN &DUJRQHWKRRNV )ORRUPDWLIHTXLSSHG &DUJREHG &DUJRWLHGRZQKRRNV %HGH[WHQGHULIHTXLSSHG 2SHUDWLRQ %HGH[WHQGHUUHPRYDO &DUJRODPS %HGFRYHULIHTXLSSHG 6HFXULQJWKHFRYHU
&RYHUUHPRYDO &RYHUUHLQVWDOODWLRQ
5RRIUDLODQGFURVVEDU
,QVWDOOLQJFDUU\LQJDWWDFKPHQWVRQ
WKHFURVVEDUV 5HPRYDODQGLQVWDOODWLRQRIWKHFURVVEDUV
6SRUWDFWLYLW\OLJKWVLIHTXLSSHG
:KHQOHDYLQJ\RXUYHKLFOHPDNHVXUHWKHOLJKWJRHV RXWWRDYRLGEDWWHU\GLVFKDUJH
,QWHULRUDQGH[WHULRUHTXLSPHQWV
,QWHULRUDQGH[WHULRUHTXLSPHQWV
,QWHULRUOLJKW
„ 'RPHOLJKW
ON
DOOR
OFF
HS6025BB
7KHGRPHOLJKWVZLWFKKDVWKUHHSRVLWLRQV 217KHOLJKWVWD\VRQFRQWLQXRXVO\ '225PLGGOHSRVLWLRQ7KHOLJKWFRPHV RQZKHQ DQ\RIWKHGRRUVLVRSHQ7KHOLJKWUHPDLQVRQIRUVHY HUDOVHFRQGVDQGJUDGXDOO\JRHVRXWDIWHUDOOGRRUVDUH FORVHG
7KHOLJKWDOVRFDQEHWXUQHGRQE\XVHRIWKHNH\OHVV HQWU\WUDQVPLWWHU6HHWKH³5HPRWHNH\OHVVHQWU\V\V WHPLIHTXLSSHG´LQFKDSWHUIRUGHWDLOHGLQIRUPDWLRQ 2))7KHOLJKWVWD\VRII
0DSOLJKW
6XQYLVRUV
,QWHULRUDQGH[WHULRUHTXLSPHQWV
UG6021CB
UB7001BA
6ZLWFKHV 0DSOLJKWV
7RWXUQRQWKHPDSOLJKWSXVKWKHVZLWFK7RWXUQLWRII SXVKWKHVZLWFKDJDLQ
:KHQOHDYLQJWKHYHKLFOHPDNHVXUHWKHOLJKWLVWXUQHG RIIWRDYRLGEDWWHU\GLVFKDUJH
7REORFNRXWJODUHVZLQJGRZQWKHYLVRUV7RXVHWKH VXQYLVRUDWDVLGHZLQGRZVZLQJLWGRZQDQGPRYHLW VLGHZD\V
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
„ 9DQLW\PLUURULIHTXLSSHG
6WRUDJHFRPSDUWPHQW
y $OZD\V NHHS WKH VWRUDJH FRPSDUWPHQW FORVHGZKLOHGULYLQJWRUHGXFHWKHULVNRILQMXU\ LQWKHHYHQWRIVXGGHQVWRSVRUDQDFFLGHQW y 'R QRW VWRUH VSUD\ FDQV FRQWDLQHUV ZLWK IODPPDEOH RU FRUURVLYH OLTXLGV RU DQ\ RWKHU GDQJHURXVLWHPVLQWKHVWRUDJHFRPSDUWPHQW
UB6017AA
7RXVHWKHYDQLW\PLUURUVZLQJGRZQWKHVXQYLVRUDQG RSHQWKHYDQLW\PLUURUFRYHU
7KHOLJKWEHVLGHWKHYDQLW\PLUURUFRPHVRQZKHQWKH LJQLWLRQVZLWFKLVHLWKHULQWKH³$&&´RU³21´SRVLWLRQ DQGWKHPLUURUFRYHULVRSHQHG
„ *ORYHER[
„ &HQWHUFRQVROH
,QWHULRUDQGH[WHULRUHTXLSPHQWV
HS6030BB
/RFN 8QORFN
7R RSHQ WKH JORYH ER[ SXOO WKH KDQGOH 7R FORVH LW SXVKWKHOLGILUPO\XSZDUG 7RORFNWKHJORYHER[LQVHUWWKHNH\DQGWXUQLWFORFN ZLVH
7RRSHQWKHOLGSXOOXSWKHORFNUHOHDVH
UB6022BA
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
„ 5HDUFHQWHUFRQVROH
„ &RLQFRPSDUWPHQW
7RRSHQWKHOLGSXVKWKHEXWWRQ
7RRSHQWKHFRLQFRPSDUWPHQWSXOOWKHXSSHUHGJHRI WKHOLG
UB6028BA
HS6055BA
&XSKROGHU
„ )URQWFXSKROGHU
,QWHULRUDQGH[WHULRUHTXLSPHQWV
y 'RQRWSLFNXSDFXSIURPWKHFXSKROGHURU SXWDFXSLQWKHKROGHUZKLOH\RXDUHGULYLQJDV WKLVPD\GLVWUDFW\RXDQGOHDGWRDQDFFLGHQW y 7DNH FDUH WR DYRLG VSLOOV %HYHUDJHV LI KRW PLJKW EXUQ \RX RU \RXU SDVVHQJHUV 6SLOOHG EHYHUDJHV PD\ DOVR GDPDJH XSKROVWHU\ FDU SHWVRUDXGLRHTXLSPHQW
$GXDOFXSKROGHULVEXLOWLQWKHFHQWHUFRQVROHEHVLGH WKHSDUNLQJEUDNHOHYHU
UB6030BA
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
„ 5HDUSDVVHQJHU¶VFXSKROGHU
&LJDUHWWHOLJKWHUVRFNHW
y 7KH HOHFWULFDO SRZHU VRFNHW ORFDWHG RQ WKH ORZHUSDUWRIWKHLQVWUXPHQWSDQHOLVRULJLQDOO\ GHVLJQHG WR XVH D 68%$58 JHQXLQH FLJDUHWWH OLJKWHUSOXJ'RQRWXVHQRQJHQXLQHFLJDUHWWH OLJKWHUSOXJVLQWKHVRFNHW'RLQJVRPD\FDXVH D VKRUWFLUFXLW DQG RYHUKHDWLQJ UHVXOWLQJ LQ D ILUH y ,IWKHVRFNHWLVHYHUXVHGIRUDSOXJLQDFFHV VRU\VXFKDVDPRELOHSKRQHWKH\PD\GDPDJH WKHSRUWLRQRIWKHVRFNHW¶VLQWHUQDOPHFKDQLVP WKDWFDXVHVDFLJDUHWWHOLJKWHUSOXJWR³SRSRXW´ DIWHULWVOLJKWHUHOHPHQWLVKHDWHG7KHUHIRUHGR QRW SODFH D FLJDUHWWH OLJKWHU SOXJ LQ D VRFNHW WKDWKDVEHHQXVHGHYHQRQFHWRSRZHUDSOXJ LQDFFHVVRU\'RLQJVRPD\FDXVHWKHSOXJWR VWLFNDQGRYHUKHDWFUHDWLQJDSRWHQWLDOILUHKD] DUG y 'RQRWSODFHDQ\ IRUHLJQREMHFWV HVSHFLDOO\ PHWDORQHVVXFKDVFRLQVRUDOXPLQXPIRLOLQWR WKHVRFNHW7KDWFRXOGFDXVHDVKRUWFLUFXLW
$GXDOFXSKROGHULVEXLOWLQWKHUHDUFHQWHUFRQVROH
UB6029BA
,QWHULRUDQGH[WHULRUHTXLSPHQWV
WKHKHDWLQJHOHPHQW
'R QRW KROG WKH OLJKWHU SXVKHG LQ EHFDXVH LW ZLOORYHUKHDW
UB6011BA
7KHHOHFWULFDOSRZHUVRFNHWORFDWHGRQWKHORZHUSDUW RIWKHLQVWUXPHQWSDQHOFDQEHXVHGDVFLJDUHWWHOLJKW HUVRFNHW$FLJDUHWWHOLJKWHUSOXJLVDQRSWLRQDODFFHV VRU\,WLVDYDLODEOHIURP\RXU68%$58GHDOHU 7KH FLJDUHWWH OLJKWHU VRFNHW PD\ DOVR EH XVHG DV D SRZHUVRXUFHIRUDQLQFDUXVHHOHFWULFDODSSOLDQFH
„ 8VHZLWKDFLJDUHWWHOLJKWHU
7RDYRLGEHLQJEXUQHGQHYHUJUDVSWKHOLJKWHU E\WKHHQGZLWKWKHKHDWLQJHOHPHQW'RLQJVR FRXOG UHVXOW LQ LQMXU\ DQG FRXOG DOVR GDPDJH
UB6011DA
7KH FLJDUHWWH OLJKWHU RSHUDWHV RQO\ ZKHQ WKH LJQLWLRQ VZLWFKLVLQWKH³21´DQG³$&&´SRVLWLRQV 7RXVHWKHFLJDUHWWHOLJKWHUSXVKLQWKHNQREDQGZDLW D IHZ PRPHQWV ,W ZLOO DXWRPDWLFDOO\ VSULQJ XS ZKHQ UHDG\IRUXVH
±&217,18('±
DQGRSHUDWLQJWKHDFFHOHUDWRUDQGEUDNHSHGDOV ,I WKH\ GR GR QRW XVH WKH HOHFWULFDO DSSOLDQFH ZKLOHGULYLQJ
,IWKHVRFNHWKDVEHHQXVHGIRUHOHFWULFDODSSOLDQFHV GDPDJHPD\KDYHEHHQGRQHWRWKHLQWHUQDOPHFKD QLVPWKDWFDXVHDFLJDUHWWHOLJKWHUWR³SRSRXW´DIWHULWV HOHPHQWKDVEHHQKHDWHG)RUWKDWUHDVRQDFLJDUHWWH OLJKWHUHYHQLILWLVDJHQXLQHSDUWVKRXOGQRWEHXVHG LQWKHVRFNHW,I\RXZDQWWRXVHWKHVRFNHWIRUDFLJD UHWWHOLJKWHUDJDLQRUWRSURWHFW\RXUSXUFKDVHUEHIRUH \RXVHOO\RXUFDUKDYH\RXU68%$58GHDOHUUHSODFH WKHVRFNHWZLWKDQHZRQH
,QWHULRUDQGH[WHULRUHTXLSPHQWV
„ 8VLQJDVDQDFFHVVRU\SRZHURXWOHW (OHFWULFDOSRZHU9'&IURPWKHEDWWHU\LVRQWDSDW WKH VRFNHW ZKHQ WKH LJQLWLRQ VZLWFK LV HLWKHU LQ WKH ³$&&´RU³21´SRVLWLRQ ,I \RX XVH WKH VRFNHW DV DQ DFFHVVRU\ SRZHU RXWOHW WDNHWKHIROORZLQJSUHFDXWLRQV :KHQWKHVRFNHWLVQRWLQXVHDOZD\VSXWWKHFDSRQ WKHVRFNHWWRSUHYHQWDQ\IRUHLJQREMHFWIURPHQWHULQJ LW
y 8VH RQO\ LQFDU XVH HOHFWULFDO DSSOLDQFHV ZKLFKDUHGHVLJQHGIRU9'&DQGZKLFKFRQ VXPH OHVV WKDQ : 2YHUORDGLQJ WKH VRFNHW FDQ FDXVH D VKRUW FLUFXLW 'R QRW XVH GRXEOH DGDSWHUVRUPRUHWKDQRQHHOHFWULFDODSSOLDQFH y ,IWKHSOXJRQ\RXUHOHFWULFDSSOLDQFHLVHLWKHU WRRORRVHRUWRRWLJKWIRUWKHVRFNHWWKLVFDQUH VXOWLQDSRRUFRQWDFWRUFDXVHWKHSOXJWRJHW VWXFN2QO\XVHSOXJVWKDWILWSURSHUO\ y 8VHRIDQHOHFWULFDSSOLDQFHLQWKHVRFNHWIRU D ORQJ SHULRG RI WLPH ZKLOH WKH HQJLQH LV QRW UXQQLQJFDQFDXVHEDWWHU\GLVFKDUJH y %HIRUH GULYLQJ \RXU YHKLFOH PDNH VXUH WKDW WKHSOXJDQGWKHFRUGRQ\RXUHOHFWULFDODSSOL DQFHZLOOQRWLQWHUIHUHZLWK\RXUVKLIWLQJJHDUV
$VKWUD\
RXWZKLOHSXVKLQJWKHLQQHUSODWHGRZQ
,QWHULRUDQGH[WHULRUHTXLSPHQWV
'R QRW XVH DVKWUD\V DV ZDVWH UHFHSWDFOHV RU OHDYH D OLJKWHG FLJDUHWWH LQ DQ DVKWUD\ 7KLV FRXOGFDXVHDILUH
)XOO\FORVHWKHDVKWUD\DIWHUXVLQJLWWRKHOSUHGXFHUH VLGXDOVPRNH
7RRSHQWKHDVKWUD\SXOOWKHOLGRXW
7RUHPRYHWKHDVKWUD\IRUFOHDQLQJRSHQLWDQGSXOOLW
UB6011CA
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
&RQYHQLHQFHKRRN
„ &RDWKRRN
KDQGJULS
„ &DUJRQHWKRRNV
1HYHU KDQJ DQ\WKLQJ RQ WKH FRDW KRRN WKDW PLJKW REVWUXFW WKH GULYHU¶V YLHZ RU WKDW FRXOG FDXVHLQMXU\LQVXGGHQVWRSVRULQDFROOLVLRQ $QG GR QRW KDQJ LWHPV RQ WKH FRDW KRRN WKDW ZHLJKOEVNJRUPRUH
UB6031BA
7KH FRDW KRRN LV DWWDFKHG WR HDFK UHDU SDVVHQJHU¶V
HS6040BA
,QWHULRUDQGH[WHULRUHTXLSPHQWV
$IWHUUHWXUQLQJWKHVHDWEDFNWRLWVRULJLQDOSRVL WLRQPDNHVXUHWKDWWKHUHDUVHDWEDFNKDVEHHQ VHFXUHO\ORFNHG:KHQVHFXUHO\ORFNHGWKHUHG PDUNVRQWKHORFNLQJNQREVDUHQRORQJHUYLVL EOH
±&217,18('±
UB6054BA
7KHUH DUH IRXU KRRNV RQ WKH EDFN SDQHO EHKLQG WKH UHDUVHDWEDFN 7KHVHKRRNVFDQEHXVHGIRULQVWDOOLQJDFDUJRQHWVR WKDWVPDOODQGOLJKWLWHPVFDQEHKHOGQH[WWRWKHEDFN SDQHOZKHQWKHUHDUVHDWEDFNLVLQWKHGRZQSRVLWLRQ
)ROGWKHUHDUVHDWEDFNIRUZDUGE\SXOOLQJWKHUHOHDVH NQREXSIRUDFFHVVWRWKHKRRNV
7KHUHDUHWZRKRRNVRQWKHEDFNRIWKHUHDUVHDWEDFN 8VLQJWKHVHKRRNVDQGWKHWZRKRRNVDWWKHERWWRPRI WKHEDFNSDQHOLWLVSRVVLEOHWRXVHDFDUJRQHWWRUH WDLQOXJJDJHRQWKHIROGHGGRZQUHDUVHDWEDFN
,QWHULRUDQGH[WHULRUHTXLSPHQWV
)ORRUPDWLIHTXLSSHG
0DNHVXUHWKHGULYHU¶VIORRUPDWLVSODFHGEDFN LQLWVSURSHUORFDWLRQDQGFRUUHFWO\VHFXUHGRQ LWV UHWDLQLQJ SLQ ,I WKH IORRU PDW VOLSV IRUZDUG DQGLQWHUIHUHVZLWKWKHPRYHPHQWRIWKHSHGDOV GXULQJGULYLQJLWFRXOGFDXVHDQDFFLGHQW
HS6039BA
HS6038BA
$UHWDLQLQJSLQLVORFDWHGRQWKHGULYHU¶VVLGHRIWKHYH KLFOH7KHIORRUPDWLVVHFXUHGXVLQJWKHEXLOWLQJURP PHWE\SODFLQJWKHJURPPHWRYHUWKHSLQDQGSXVKLQJ GRZQZDUG
&DUJREHG
WR VXIIHU VHULRXV LQMXU\ RU GHDWK LQ D VXGGHQ EUDNLQJRULQDFROOLVLRQ
,QWHULRUDQGH[WHULRUHTXLSPHQWV
UB1149BA
y 1HYHU ILOO JDVROLQH FRQWDLQHUV RQ WKH FDUJR EHG6WDWLFHOHFWULFLW\PD\LJQLWHJDVROLQHYDSRU ZKHQ ILOOLQJ SRUWDEOH FRQWDLQHUV $SSURYHG FRQWDLQHUV PXVW EH UHPRYHG IURP WKH YHKLFOH DQGSODFHGRQWKHJURXQGZKHQILOOLQJ 'RQRWILOODQ\SRUWDEOHFRQWDLQHURQDYHKLFOH y 1HYHUDOORZDQ\RQHWRULGHLQWKHFDUJREHG ,WLVQRWGHVLJQHGIRUSDVVHQJHUV7KH\VKRXOG ULGH LQ WKH VHDWV ZLWK WKH VHDW EHOWV VHFXUHO\ IDVWHQHG2WKHUZLVHWKH\DUHPXFKPRUHOLNHO\
y 'RQRWH[FHHGWKHFDUJRORDGUDWLQJRI\RXU YHKLFOH 5HIHU WR WKH ³/RDGLQJ \RXU YHKLFOH´ VHFWLRQLQ&KDSWHU y %H VXUH FDUJR LV VHFXUHG SURSHUO\ 8QVH FXUHG FDUJR LQ WKH FDUJR EHG FDQ EH WKURZQ DURXQGGXULQJVXGGHQEUDNLQJLQDVKDUSWXUQ RU GXULQJ UDSLG DFFHOHUDWLRQ ZKLFK FRXOG FUH DWHDGDQJHURXVURDGKD]DUG y 7RDYRLGFUHDWLQJDGDQJHURXVURDGKD]DUGRU FDXVLQJ SHUVRQDO LQMXU\ FDUJR PXVW QRW VWLFN RXWEH\RQGWKHWDLOJDWH y 1HYHUGULYHWKHYHKLFOHZLWKWKHWDLOJDWHRSHQ XQOHVV WKH RSWLRQDO 68%$58 %HG ([WHQGHU LV XVHG
&DUJRVKRXOGEHSODFHGLQWKHFDUJREHG0DNHVXUH DOOLWHPVDUHVHFXUHGLQSODFH %HFDUHIXOWRNHHSWKHYHKLFOHEDODQFHG/RFDWLQJWKH ZHLJKWDVORZDQGIDUIRUZDUGDVSRVVLEOHKHOSVPDLQ WDLQEDODQFH 7KHUH DUHWZRZDWHU GUDLQKROHV DWERWK VLGHV RIWKH ±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
IURQWHQGRIWKHFDUJREHG.HHSWKRVHKROHVFOHDUDQG IUHHIURPREVWUXFWLRQV
%HGH[WHQGHULIHTXLSSHG
„ &DUJRWLHGRZQKRRNV
7KHEHGH[WHQGHULVGHVLJQHGWRLQFUHDVHWKHXVDEOH FDUJRDUHDRIWKHEHG
y :KHQWKHWDLOJDWHDQGEHGH[WHQGHUDUHLQWKH ³RSHQRXWZDUG´ SRVLWLRQ WKH OLFHQVH SODWH EUDFNHWPXVWEHORZHUHGDQGORFNHGLQWRSRVL WLRQ EHIRUH WKH YHKLFOH LV GULYHQ VHH VHFWLRQ ³/LFHQVH SODWH EUDFNHW´ XQGHU WKH KHDGLQJ RI ³7DLOJDWH´LQ&KDSWHUIRUPRUHLQIRUPDWLRQRQ WKHIXQFWLRQRIWKHOLFHQVHSODWHEUDFNHW,QRU GHUWRDYRLGGDPDJLQJWKHOLFHQVHSODWHEUDFNHW RU WKH EXPSHU PDNH FHUWDLQ WKDW WKH OLFHQVH SODWH EUDFNHW LV LQ LWV IXOO\ ORZHUHGRSHQ SRVL WLRQEHIRUHWKHWDLOJDWHLVORZHUHG y 'RQRWH[FHHGWKHFDUJRORDGUDWLQJRI\RXU YHKLFOH 5HIHU WR ³/RDGLQJ \RXU YHKLFOH´ VHF WLRQLQ&KDSWHU y /RFNLQJ EXFNOHV PXVW EH HQJDJHG LQWR WKH WDLOJDWHODWFKZKLOHWKHYHKLFOHLVLQPRWLRQ y :KHQWKHEHGH[WHQGHULVQRWLQXVHWKHWDLO JDWHVKRXOGEHFORVHG y 'RQRWXVHWKHEHGH[WHQGHURUWDLOJDWHWRVH FXUHFDUJR
7KHFDUJREHGLVHTXLSSHGZLWKIRXUWLHGRZQKRRNVVR WKDWFDUJRFDQEHVHFXUHGZLWKDOXJJDJHQHWRUURSHV
UB6032BA
,QWHULRUDQGH[WHULRUHTXLSPHQWV
2SHQ2XWZDUG3RVLWLRQ±7RXVHWKHEHGH[WHQGHULQ WKHRSHQRXWZDUG SRVLWLRQVLPSO\ ORZHU\RXUOLFHQVH SODWHEUDFNHWVHHVHFWLRQ³/LFHQVHSODWHEUDFNHW´XQ GHUKHDGLQJRI³7DLOJDWH´LQ&KDSWHURSHQ\RXUWDLO JDWHDQGURWDWHWKHEHGH[WHQGHUXQWLOLWVLWVRQWKHWDLO JDWH
y 5HPRYH WKH EHG H[WHQGHU IRU YHKLFOH ³2II 5RDG´XVH y 7RDYRLGFUHDWLQJDGDQJHURXVURDGKD]DUGRU FDXVLQJ SHUVRQDO LQMXU\ FDUJR PXVW QRW VWLFN RXWEH\RQGWKHEHGH[WHQGHU y 7R DYRLG GDPDJH WKH WDLOJDWH DQG EHG H[ WHQGHUPXVWUHPDLQLQWKHFORVHGLQZDUGSRVL WLRQZKHQWRZLQJZLWKDWUDLOHUKLWFK y 7R DYRLG GDPDJH FOHDQ WKH EHG H[WHQGHU RQO\ZLWKVRDSZDWHUDQGDVRIWEUXVK
„ 2SHUDWLRQ
UB8033AA
$IWHU\RXKDYHURWDWHGWKHEHGH[WHQGHUORFNWKHEODFN EXFNOHSLQLQWRWKHWDLOJDWHODWFKE\SXVKLQJGRZQZDUG XQWLO \RX KHDU WZR FOLFNV 7KHQ WLJKWHQ WKH WHWKHU VWUDSV5HSHDWWKLVSURFHVVIRUWKHRWKHUVLGH:KHQ \RXZDQWWRUHWXUQWKHWDLOJDWHDQGWKHEHGH[WHQGHUWR WKHFORVHGLQZDUGSRVLWLRQSXOORQWKHWDLOJDWHUHOHDVH KDQGOHWRGLVHQJDJHWKHWHWKHUV
UB8032AA
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
127( 8VHFDUHZKHQURWDWLQJEHGH[WHQGHU'RQRWSHU PLW WKH EXFNOHV WR FRPH LQ FRQWDFW ZLWK YHKLFOH VKHHWPHWDODQGEHGWULP
&ORVHG,QZDUG 3RVLWLRQ ± :LWK WKH WDLOJDWH FORVHG DQG WKH EHG H[WHQGHU LQ WKH LQZDUG SRVLWLRQ VPDOO ORDGV FDQ EH SODFHG LQVLGH WKH YHKLFOH EHG EHWZHHQ WKH WDLOJDWH DQG WKH H[WHQGHU JURFHULHV LFH FKHVWV HWF
SUHVVWKHODWFKSLQ
„ %HGH[WHQGHUUHPRYDO
7KHEHGH[WHQGHUFDQEHUHPRYHGIURPWKHYHKLFOHE\ URWDWLQJWKHH[WHQGHULQWRDYHUWLFDOSRVLWLRQWKHQOLIWLQJ VWUDLJKWXS
UB8036BA
UB8035AA
7KHEHGH[WHQGHUVKRXOGEHVHFXUHGWRWKHUHDUVHWRI YHKLFOH FDUJR KRRNV /DWFK WKH EXFNOH RQWR WKH UHDU FDUJRKRRNVDQGWKHQWLJKWHQWKHWHWKHUVWUDSV7RGLV HQJDJHWKHWHWKHUVORRVHQWKHWHWKHUVWUDSVDQGGH
&DUJRODPS
,QWHULRUDQGH[WHULRUHTXLSPHQWV
UB3018AA
UB7023DA
7KHFDUJRODPSFRPHVRQDQGJRHVRIIZKHQHYHUWKH FDUJRODPSVZLWFKLVSXVKHGUHJDUGOHVVRIWKHSRVLWLRQ RIWKHLJQLWLRQVZLWFK7KHFDUJRODPSLQGLFDWRUOLJKWOR FDWHGLQWKHPHWHUSDQHOZLOOLOOXPLQDWHZKHQWKHFDUJR ODPSLVRQ :KHQ OHDYLQJ \RXU YHKLFOH PDNH VXUH WKH ODPS LV WXUQHGRIIWRDYRLGEDWWHU\GLVFKDUJH
'RQRWVZLWFKRQWKHFDUJRODPSZKLOHGULYLQJ WRDYRLGGLVWUDFWLQJRWKHUGULYHUV
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
%HGFRYHULIHTXLSSHG
„ 6HFXULQJWKHFRYHU
7KHEHGFRYHULVGHVLJQHGWRFRYHUWKHFDUJRDUHDRI WKHEHG7KHEHGFRYHULVZDWHUUHVLVWDQWEXWQRWZD WHUSURRI
y 'RQRWSODFHFDUJRRQWRSRIWKHEHGFRYHU y 'R QRW XVH WKH KDUG EHG FRYHU VHFWLRQ DV D VWHS y 'RQRWXVHWKHEHGFRYHUWRVHFXUHFDUJR y 7R DYRLG GDPDJH FOHDQ WKH EHG FRYHU ZLWK RQO\VRDSZDWHUDQGDVRIWEUXVK y 5HPRYHWKHVRIWSRUWLRQRIWKHEHGFRYHUEH IRUHWDNLQJWKHYHKLFOHWKURXJKDFDUZDVK
UB6033AA
UB6034BA
,QWHULRUDQGH[WHULRUHTXLSPHQWV
7RVHFXUHWKHVRIWSRUWLRQRIWKHEHGFRYHUWRWKHEHG
VLPSO\VWDUWIURPHLWKHUVLGHRIWKHYHKLFOHDQGSODFH
WKHSODVWLFVWULSXQGHUWKHUDLO6OLGH\RXUKDQGGRZQ
WKHVLGHRIWKHYHKLFOHSXVKLQJWKHSODVWLFVWULSXQGHU
WKH UDLO DV \RX JR &RQWLQXH WKLV DURXQG WKH HQWLUH
OHQJWK RI WKH EHG )DVWHQ ERWK FORVHRXW ZUDSV ZLWK
9HOFURDURXQGWKHUHDUFKURPHEDUVVRWKDWWKH\DUH
VHFXUH
„ &RYHUUHPRYDO
UB6036BA
7KHVRIWSRUWLRQRIWKHEHGFRYHUFDQEHUHPRYHGIURP WKHEHGFRYHU¶VKDUGVHFWLRQIRUFOHDQLQJRUVWRUDJH 8QIDVWHQWKH9HOFURRQ WKHWXEHFORVHRXWZUDSV DQG ILUPO\SXOOWKHFRYHURXWWRRQHVLGH
UB6035BA
±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
„ &RYHUUHLQVWDOODWLRQ
UB6037BA
7KH VRIW SRUWLRQ RI WKH EHG FRYHU FDQ EH UHLQVWDOOHG RQWR WKH EHG FRYHU¶V KDUG VHFWLRQ 6WDUW E\ LQVHUWLQJ WKHOHIWIURQWHGJHRIWKHVRIWSRUWLRQLQWRWKHULJKWVLGH RIWKHKDUGFRYHU7KLVDUHDLVIODUHGRXWWRHDVHLQVWDO ODWLRQ
UB6038BA
$V\RXLQVHUWDQGSXOOWKHVRIWSRUWLRQRIWKHEHGFRY HU LQWR WKH EHG FRYHU¶V KDUG VHFWLRQ PDNH VXUH WKH QH[WWRLQFKHVWRPPRIWKHVRIWSRU WLRQDUHVWUDLJKWDQGUHDG\WRHQWHUWKHIODUHGRXWSRU WLRQRIWKHKDUGVHFWLRQ
2QFH\RXKDYHSXOOHGWKHVRIWSRUWLRQRIWKHEHGFRYHU RQWRWKHEHGFRYHU¶VKDUGVHFWLRQPDNHVXUHWKHVRIW SRUWLRQLVHTXDOO\FHQWHUHGRQERWKVLGHV7RFRPSOHWH WKHLQVWDOODWLRQUHIHUWR³6HFXULQJWKHFRYHU´
5RRIUDLODQGFURVVEDU
y )RU FDUJR FDUU\LQJ SXUSRVHV WKH URRI UDLO PXVWEHXVHGWRJHWKHUZLWKDURRIFURVVEDUNLW DQG WKH DSSURSULDWH FDUU\LQJ DWWDFKPHQW 7KH URRIUDLOPXVWQHYHUEHXVHGDORQHWRFDUU\FDU JR2WKHUZLVHGDPDJHWRWKHURRIRUSDLQWRUD GDQJHURXV URDG KD]DUG GXH WR ORVV RI FDUJR FRXOGUHVXOW y :KHQXVLQJWKHURRIFURVVEDUNLWPDNHVXUH WKDWWKHWRWDOZHLJKWRIWKHFURVVEDUVFDUU\LQJ DWWDFKPHQW DQG FDUJR GRHV QRW H[FHHG WKH PD[LPXP ORDG OLPLW 2YHUORDGLQJ PD\ FDXVH GDPDJHWRWKHYHKLFOHDQGFUHDWHDVDIHW\KD] DUG
,QWHULRUDQGH[WHULRUHTXLSPHQWV
UB8037BB
&URVVEDUNLW
7KH URRI UDLO LV QRW GHVLJQHG WR FDUU\ FDUJR E\ LWVHOI &DUJRFDQEHFDUULHGDIWHUVHFXULQJWKHURRIFURVVEDU NLWWRWKHURRIUDLODQGLQVWDOOLQJWKHDSSURSULDWHFDUU\ LQJDWWDFKPHQW:KHQLQVWDOOLQJWKHURRIFURVVEDUNLW IROORZWKHPDQXIDFWXUHU¶VLQVWUXFWLRQV
:KHQ\RXFDUU\FDUJRRQWKHURRIXVLQJWKHURRIFURVV
EDU NLW DQG D FDUU\LQJ DWWDFKPHQW QHYHU H[FHHG WKH
PD[LPXPORDGOLPLWH[SODLQHGEHORZ
„ 5HPRYDODQGLQVWDOODWLRQRIWKHFURVV
EDUV
'RQRWFDUU\FDUJRRQWKHURRIZKHQWKHFURVV EDUVDUHUHPRYHG/XJJDJHRQWKHURRIZLOOEH WKURZQIRUZDUGRUEDFNZDUGLQVXGGHQVWRSVRU UDSLG DFFHOHUDWLRQV UHVXOWLQJ LQ D GDQJHURXV URDGKD]DUG
7KHFURVVEDUVFDQEHUHPRYHGZKHQ\RXGRQRWXVH WKHURRIWRFDUU\FDUJR
,QWHULRUDQGH[WHULRUHTXLSPHQWV
ORDGLQJFDUJRLQWRRURQWR\RXUYHKLFOH7KHPD[LPXP ORDGOLPLWRIWKHFDUJRFURVVEDUVDQGFDUU\LQJDWWDFK PHQW PXVW QRW H[FHHG OEV NJ 3ODFH WKH KHDYLHVW ORDG DW WKH ERWWRP QHDUHVW WKH URRI DQG HYHQO\GLVWULEXWHWKHFDUJR$OZD\VSURSHUO\VHFXUHDOO FDUJR
„ ,QVWDOOLQJFDUU\LQJDWWDFKPHQWVRQWKH
FURVVEDUV
:KHQ LQVWDOOLQJ DQ\ FDUU\LQJ DWWDFKPHQW VXFK DV D ELNH FDUULHU VNL FDUULHU ND\DN FDUULHU FDUJR EDVNHW HWF RQ WKH FURVVEDUV IROORZ WKH PDQXIDFWXUHU¶V LQ VWUXFWLRQV DQG PDNH VXUH WKDW WKH DWWDFKPHQW LV VH FXUHO\ IL[HG WR WKH FURVVEDUV 8VH RQO\ DWWDFKPHQWV GHVLJQHG VSHFLILFDOO\ IRU WKH FURVVEDUV $ VHW RI WKH FURVVEDUV LV GHVLJQHG WR FDUU\ ORDGV FDUJR DQG DW WDFKPHQW RI QRW PRUH WKDQ OEV NJ %HIRUH RSHUDWLQJ WKH YHKLFOH PDNH VXUH WKDW WKH FDUJR LV SURSHUO\VHFXUHGRQWKHDWWDFKPHQW
127( 5HPHPEHUWKDWWKHYHKLFOH¶VFHQWHURIJUDYLW\LVDO WHUHGZLWKWKHZHLJKWRIWKHORDGRQWKHURRIWKXV DIIHFWLQJWKHGULYLQJFKDUDFWHULVWLFV 'ULYHFDUHIXOO\$YRLGUDSLGVWDUWVKDUGFRUQHULQJ DQG DEUXSW VWRSV &URVVZLQG HIIHFWV ZLOO EH LQ FUHDVHG
T 7RUHPRYHWKHFURVVEDU
,QWHULRUDQGH[WHULRUHTXLSPHQWV
/RRVHQ DQG UHPRYH WKH 7 WRU[Š KHDG VFUHZ IURPWKHVLGHRIHDFKFURVVEDUHQGVXSSRUW 0RYHWKHHQGVXSSRUWDQGLQQHUFODPSWRXQKRRN HDFKVLGHRIWKHFURVVEDUIURPWKHURRIUDLO &DUHIXOO\UDLVHWKHFURVVEDUIURPURRIUDLOV
127( ,W PD\ EH QHFHVVDU\ WR PRYH WKH )URQW FURVVEDU UHDUZDUGQHDUWKHFHQWHURIWKHURRIUDLOIRUHDVLHU UHPRYDO8VHFDUHQRWWRFURVVWKUHDGWKHVFUHZLQ WKHLQVHUWLILWKDVEHHQUHPRYHG
T 7RLQVWDOOWKHFURVVEDU
127( %RWK&URVVEDUVKDYHDODEHOLQGLFDWLQJWKHGLUHF WLRQRIPRXQW,IWKH\DUHQRWSUHVHQWRULHQWZLWK WKH ODUJHU VHFWLRQ RI WKH &URVVEDU WRZDUGV WKH IURQW RI YHKLFOH VHH EHORZ 7KH )URQW &URVVEDU DOVRKDVD0$;,080/2$'/DEHODIIL[HGWRLW
±&217,18('±
UB6047BA
UB6048BA
,QWHULRUDQGH[WHULRUHTXLSPHQWV
)URQWFURVVEDU )URQWFURVVEDUKDV/%6/RDG/DEHORQOHIWKDQG VLGH
)URQW 5HDU &URVVEDUVHFWLRQ
UB6055BB
/RDGODEHO
UB6051BB
,QWHULRUDQGH[WHULRUHTXLSPHQWV
YLGHG LQWR WKH WKUHDGHG LQVHUW LQ WKH LQQHU FODPS RQ HDFKHQGRIWKHFURVVEDU
127( ,WPD\EHQHFHVVDU\WR VWDUWWKH LQQHUFODPSDQG HQGVXSSRUWDWWKHFHQWHURIWKHURRIUDLOIRUHDVLHU LQVWDOODWLRQWKHQPRYHWKHFURVVEDUIRUZDUG8VH FDUHQRWWRFURVVWKUHDGWKHVFUHZLQWKHLQVHUWLILW KDVEHHQUHPRYHG
UB6053BA
$GMXVW WKH DOLJQPHQW RI WKH FURVVEDU RQ WKH URRI UDLOVDQGLIDYDLODEOHXVHD7WRU[ŠELWDQGWRUTXH ZUHQFKDQGWLJKWHQWKH7WRU[ŠKHDGVFUHZVWR WR OEIÂLQ WR 1ÂP WR NJIÂP RI WRUTXHRUWLJKWHQVHFXUHO\ZLWKWKHWRU[ŠZUHQFKSUR ±&217,18('±
7 in (180 mm)
UB6052BB
%HIRUHSODFLQJWKHFURVVEDURQWKHURRIUDLOVPDNH VXUHWKDWWKH7WRU[ŠKHDGVFUHZLVIXOO\ORRVHQHG IURPHDFKHQGVXSSRUW 6SUHDGWKHLQQHUFODPSDQGWKHHQGVXSSRUWDVIDU DSDUWDVSRVVLEOH :LWKWKHIURQWGLUHFWLRQDUURZODEHORQWKHWRSULJKW VLGHRIWKHFURVVEDUSRLQWLQJWRZDUGWKHIURQWRIWKHYH KLFOHFDUHIXOO\SODFHWKHFURVVEDUDFURVVWKHWRSRIWKH YHKLFOHVRWKDWWKHFURVVEDUHQGVXSSRUWVUHVWRQWKH WRSRIWKHURRIUDLOVLQFKHVPPUHDUZDUGLQWKH IURQWUDGLXVRIWKHURRIUDLO 0RYHWKHHQGVXSSRUWDQGLQQHUFODPSWRKRRNXQ GHUWKHHQGRIWKHURRIUDLORQERWKVLGHVDQGORRVHO\ DVVHPEOHWKH7WRU[ŠKHDGVFUHZZLWKWKHWRROSUR
,QWHULRUDQGH[WHULRUHTXLSPHQWV
YLGHG
5HDUFURVVEDU
0 in
(0 mm)
UB6049BB
,QVWDOO WKH UHDU FURVVEDU LQ WKH VDPH PDQQHU DV WKH IURQWFURVVEDU
UB6050BA
127( 7KH UHDU FURVVEDU VKRXOG EH SRVLWLRQHG MXVW LQ IURQWRIWKHUHDUUDGLXVLQWKHURRIUDLO
127( %HIRUH HDFK XVHRIWKHURRIFURVVEDU PDNH VXUH WKH IRXU 7 FURVVEDU FODPS VFUHZV KDYH EHHQ FKHFNHGDQGUHWLJKWHQHGLIQHFHVVDU\WROEIÂLQ 1ÂPNJIÂPDVRXWOLQHGLQ6WHSDERYH
6SRUWDFWLYLW\OLJKWVLIHTXLSSHG
,QWHULRUDQGH[WHULRUHTXLSPHQWV
RSHUDWHGRQSXEOLFURDGV y ,QPRVWVWDWHVWKHVSRUWDFWLYLW\OLJKWVPD\QRW EH RSHUDWHG ZKHQ WKH YHKLFOH LV LQ PRWLRQ RQ D SXEOLFURDG
UB6041BB
,QGLFDWRUOLJKW
7KH VSRUW DFWLYLW\ OLJKWV ZLOO RSHUDWH RQO\ ZKHQ WKH SDUNLQJEUDNHLVHQJDJHG3XVKWKH³63257/,*+76´ VZLWFKWRWXUQWKHVSRUWDFWLYLW\OLJKWVRQ 3UHVVWKHVZLWFKDJDLQWRWXUQWKHPRII
7KHLQGLFDWRUOLJKWORFDWHGRQWKHVZLWFKZLOOLOOXPLQDWH ZKHQWKHVSRUWDFWLYLW\OLJKWVDUHRQ
127( y ,Q PRVW VWDWHV WKH VSRUW DFWLYLW\ OLJKWV PXVW KDYH VWRQH VKLHOGV LQVWDOOHG ZKHQ WKH YHKLFOH LV
UB3019AA
7KH VSRUW DFWLYLW\ OLJKWV PRXQW WR WKH YHKLFOH IURQW FURVVEDU7KHVSRUWDFWLYLW\OLJKWVFURVVEDUZLUHKDU QHVVFRQQHFWVWRWKHURRIZLUHKDUQHVVDQGWKHQWRWKH YHKLFOH¶VHOHFWULFDOV\VWHP
$WRROLVSURYLGHGZKLFKZLOOHQDEOHWKHVSRUWDFWLYLW\ OLJKWV¶ SRVLWLRQLQJ WR EH PRGLILHG VR WKDW HDFK ODPS FDQEHDLPHGRUURWDWHG7KHODPSVFDQEHPRXQWHG LQ WZR SRVLWLRQV XSULJKW QRUPDO RU IRUZDUG GRZQ ZDUG 7KH ODPSV VKRXOG EH URWDWHG WR WKH IRUZDUG ±&217,18('±
,QWHULRUDQGH[WHULRUHTXLSPHQWV
GRZQZDUGSRVLWLRQZKHQZDVKLQJ\RXUYHKLFOH ,I\RXFKRRVHWRUHPRYHVSRUWDFWLYLW\OLJKWVWKHIROORZ LQJVHTXHQFHVKRXOGEHXWLOL]HG
'LVFRQQHFWWKHURRIKDUQHVVIURPWKHFURVVEDUKDU QHVVFRQQHFWRU $WWDFK WKH ZDWHU SURRI FRQQHFWRU FDS WR WKH URRI KDUQHVVFRQQHFWRU &DUH VKRXOG EH XVHG ZKHQ UHPRYLQJ RU LQVWDOOLQJ WKLVHOHFWULFDOSURGXFW
)XHO )XHOUHTXLUHPHQWV )XHOILOOHUGRRUDQGFDS 6WDWHHPLVVLRQWHVWLQJ86RQO\ 3UHSDULQJWRGULYH 6WDUWLQJWKHHQJLQH
6WDUWLQJWKHHQJLQHIRUDPDQXDO
WUDQVPLVVLRQYHKLFOH
6WDUWLQJWKHHQJLQHIRUDQDXWRPDWLF
WUDQVPLVVLRQYHKLFOH
6WDUWLQJWKHHQJLQHGXULQJFROGZHDWKHU
EHORZ±°)±°& 6WDUWLQJDIORRGHGHQJLQH 6WRSSLQJWKHHQJLQH 0DQXDOWUDQVPLVVLRQ 6KLIWLQJVSHHGV 'ULYLQJWLSV
$XWRPDWLFWUDQVPLVVLRQ
%$-$%$-$6SRUW 6HOHFWRUOHYHU 'ULYLQJWLSV 6KLIWORFNUHOHDVH
$XWRPDWLFWUDQVPLVVLRQ
ZLWK632576+,)7PRGH±%$-$7XUER 6HOHFWRUOHYHU 6HOHFWLRQRI632576+,)7PRGH
PDQXDOPRGH 'ULYLQJWLSV 6KLIWORFNUHOHDVH /LPLWHGVOLSGLIIHUHQWLDO/6'
6WDUWLQJDQGRSHUDWLQJ
%UDNLQJWLSV %UDNHV\VWHP 'LVFEUDNHSDGZHDUZDUQLQJLQGLFDWRUV
3RZHUVWHHULQJ %UDNLQJ $%6$QWLORFN%UDNH6\VWHP 3DUNLQJ\RXUYHKLFOH &UXLVHFRQWURO
7RVHWFUXLVHFRQWURO 7RWHPSRUDULO\FDQFHOWKHFUXLVHFRQWURO 7RWXUQRIIWKHFUXLVHFRQWURO 7RFKDQJHWKHFUXLVLQJVSHHG
$%6V\VWHPVHOIFKHFN $%6ZDUQLQJOLJKW
6WDUWLQJDQGRSHUDWLQJ
6WDUWLQJDQGRSHUDWLQJ)XHO
8VHRIDIXHOZKLFKLVORZLQTXDOLW\RUXVHRIDQ LQDSSURSULDWH IXHO DGGLWLYH PD\ FDXVH HQJLQH GDPDJH
„ )XHOUHTXLUHPHQWV
T 1RQWXUERPRGHOV 7KH/LWHUHQJLQHLVGHVLJQHGWRRSHUDWHXVLQJXQ OHDGHG JDVROLQH ZLWK DQ RFWDQH UDWLQJ RI $., RU KLJKHU
T 7XUERPRGHOV 7KH/LWHUWXUERHQJLQHLVGHVLJQHGWRRSHUDWHXVLQJ SUHPLXP XQOHDGHG JDVROLQH ZLWK DQ RFWDQH UDWLQJ RI $.,RUKLJKHU,ISUHPLXPXQOHDGHGJDVROLQHLVQRW DYDLODEOH UHJXODU XQOHDGHG JDVROLQH ZLWK DQ RFWDQH UDWLQJ RI $., RU KLJKHU PD\ EH WHPSRUDULO\ XVHG )RURSWLPXPHQJLQHSHUIRUPDQFHDQGGULYHDELOLW\LWLV UHTXLUHGWKDW\RXXVHSUHPLXPJUDGHXQOHDGHGJDVR OLQH
T )XHORFWDQHUDWLQJ 7KLVRFWDQHUDWLQJLVWKHDYHUDJHRIWKH5HVHDUFK2F WDQHDQG0RWRU2FWDQHQXPEHUVDQGLVFRPPRQO\UH IHUUHGWRDVWKH$QWL.QRFN,QGH[$., 8VLQJDJDVROLQHZLWKDORZHURFWDQHUDWLQJFDQFDXVH SHUVLVWHQWDQGKHDY\NQRFNLQJZKLFKFDQGDPDJHWKH HQJLQH 'R QRW EH FRQFHUQHG LI \RXU YHKLFOH VRPH WLPHVNQRFNVOLJKWO\ZKHQ\RXGULYHXSDKLOORUZKHQ \RXDFFHOHUDWH6HH\RXUGHDOHURUDTXDOLILHGVHUYLFH WHFKQLFLDQLI\RXXVHDIXHOZLWKWKHVSHFLILHGRFWDQH UDWLQJDQG\RXUYHKLFOHNQRFNVKHDYLO\RUSHUVLVWHQWO\
T 8QOHDGHGJDVROLQH 7KH QHFN RI WKH IXHO ILOOHU SLSHLVGHVLJQHG WR DFFHSW RQO\DQXQOHDGHGJDVROLQHILOOHUQR]]OH8QGHUQRFLU FXPVWDQFHVVKRXOGOHDGHGJDVROLQHEHXVHGEHFDXVH LW ZLOO GDPDJH WKH HPLVVLRQ FRQWURO V\VWHP DQG PD\ LPSDLUGULYHDELOLW\DQGIXHOHFRQRP\
T *DVROLQHIRU&DOLIRUQLDFHUWLILHG/(9
&DOLIRUQLD LV SHUPLWWHG WR KDYH KLJKHU VXOIXU OHYHOV ZKLFK PD\ DIIHFW WKH SHUIRUPDQFH RI \RXU YHKLFOH¶V FDWDO\WLFFRQYHUWHUDQGPD\SURGXFHDVXOIXUH[KDXVW RGRU RU VPHOO 68%$58 UHFRPPHQGV WKDW \RX WU\ D GLIIHUHQWEUDQGRIXQOHDGHGJDVROLQHKDYLQJORZHUVXO IXUWRGHWHUPLQHLIWKHSUREOHPLVIXHOUHODWHGEHIRUHUH WXUQLQJ \RXU YHKLFOH WR DQ DXWKRUL]HG GHDOHU IRU VHU YLFH
T *DVROLQHIRUFOHDQHUDLU
0DQ\JDVROLQHVDUHQRZEOHQGHGZLWKPDWHULDOVFDOOHG R[\JHQDWHV8VHRIWKHVHIXHOVFDQDOVRKHOSNHHSWKH DLU FOHDQHU 2[\JHQDWHG EOHQG IXHOV VXFK DV 07%( 0HWK\O7HUWLDU\%XW\OHWKHURUHWKDQROHWK\ORUJUDLQ DOFRKROPD\EHXVHGLQ\RXUYHKLFOHEXWVKRXOGFRQ WDLQQRPRUHWKDQ07%(RUHWKDQROIRUWKH SURSHURSHUDWLRQRI\RXU68%$58
,QDGGLWLRQVRPHJDVROLQHVXSSOLHUVDUHQRZSURGXF
6WDUWLQJDQGRSHUDWLQJ
LQJUHIRUPXODWHGJDVROLQHZKLFKLVGHVLJQHGWRUHGXFH YHKLFOHHPLVVLRQV68%$58DSSURYHVWKHXVHRIUH IRUPXODWHGJDVROLQH
,I\RXDUHQRWVXUHZKDWWKHIXHOFRQWDLQV\RXVKRXOG DVN\RXUVHUYLFHVWDWLRQRSHUDWRUVLIWKHLUJDVROLQHFRQ WDLQV GHWHUJHQWV DQG R[\JHQDWHV DQG LI WKH\ KDYH EHHQUHIRUPXODWHGWRUHGXFHYHKLFOHHPLVVLRQV
$VDGGLWLRQDOJXLGDQFHRQO\XVHIXHOVVXLWHGIRU\RXU YHKLFOHDVH[SODLQHGEHORZ y )XHOVKRXOGEHXQOHDGHGDQGKDYHDQRFWDQHUDWLQJ QRORZHUWKDQWKDWVSHFLILHGLQWKLVPDQXDO y 0HWKDQRO PHWK\O RU ZRRG DOFRKRO LV VRPHWLPHV PL[HGZLWKXQOHDGHGJDVROLQH0HWKDQROFDQEHXVHG LQ\RXUYHKLFOH21/<LILWGRHVQRWH[FHHGRIWKH IXHO PL[WXUH $1' LI LW LV DFFRPSDQLHG E\ VXIILFLHQW TXDQWLWLHVRIWKHSURSHUFRVROYHQWDQGFRUURVLRQLQKLE LWRUV UHTXLUHG WR SUHYHQW GDPDJH WR WKH IXHO V\VWHP 'RQRWXVHIXHO FRQWDLQLQJPHWKDQRO(;&(37XQGHU WKHVHFRQGLWLRQV y ,IXQGHVLUDEOHGULYHDELOLW\SUREOHPVDUHH[SHULHQFHG DQG\RXVXVSHFWWKH\PD\EHIXHOUHODWHGWU\DGLIIHU HQWEUDQGRIJDVROLQHEHIRUHVHHNLQJVHUYLFHDW \RXU 68%$58GHDOHU y )XHOV\VWHPGDPDJHRUGULYHDELOLW\SUREOHPVZKLFK UHVXOW IURP WKH XVH RI LPSURSHU IXHO DUH QRW FRYHUHG XQGHUWKH68%$58/LPLWHG:DUUDQW\
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
„ )XHOILOOHUGRRUDQGFDS
T 5HIXHOLQJ
y *DVROLQH YDSRU LV KLJKO\ IODPPDEOH %HIRUH UHIXHOLQJDOZD\VILUVWVWRSWKHHQJLQHDQGPDNH VXUHWKDWWKHUHDUHQROLJKWHGFLJDUHWWHVRSHQ IODPHVRUHOHFWULFDOVSDUNVLQWKHDGMDFHQWDUHD y :KHQ RSHQLQJ WKH FDS GR QRW UHPRYH WKH FDS TXLFNO\ )XHO PD\ EH XQGHU SUHVVXUH DQG VSUD\RXWRIWKHIXHOILOOHUQHFNHVSHFLDOO\LQKRW ZHDWKHUZKLFKPD\FDXVHLQMXU\ y 1HYHU ILOO JDVROLQH FRQWDLQHUV RQ WKH FDUJR EHG6WDWLFHOHFWULFLW\PD\LJQLWHJDVROLQHYDSRU ZKHQ ILOOLQJ SRUWDEOH FRQWDLQHUV $SSURYHG FRQWDLQHUV PXVW EH UHPRYHG IURP WKH YHKLFOH DQGSODFHGRQWKHJURXQGZKHQILOOLQJ 'RQRWILOODQ\SRUWDEOHFRQWDLQHURQDYHKLFOH
FOLFNVWRSUHYHQWIXHOVSLOODJHLQWKHHYHQWRIDQ DFFLGHQW y 'RQRWOHWIXHOVSLOORQWKHH[WHULRUVXUIDFHVRI WKH YHKLFOH )XHOV PD\ FDXVH SDLQW GDPDJH ZKLFKLVQRWFRYHUHGXQGHUWKH68%$58/LPLW HG:DUUDQW\ y $OZD\VXVHDJHQXLQH68%$58IXHOILOOHUFDS ,I\RXXVHWKHZURQJFDSLWPD\QRWILWRUKDYH SURSHU YHQWLQJ DQG \RXU IXHO WDQN DQG HPLV VLRQFRQWUROV\VWHPPLJKWEHGDPDJHG
y 1HYHU DGG DQ\ FOHDQLQJ DJHQWV WR WKH IXHO WDQN 7KH DGGLWLRQ RI D FOHDQLQJ DJHQW PD\ FDXVHGDPDJHWRWKHIXHOV\VWHP y 0DNH VXUH WKDW WKH FDS LV WLJKWHQHG XQWLO LW
7RRSHQWKHIXHOILOOHUGRRUSXOOLWRXWZDUG
UB7034BA
6WDUWLQJDQGRSHUDWLQJ
127(
UB7030BB
2SHQ &ORVH
5HPRYHWKHIXHOILOOHUFDSE\WXUQLQJLWVORZO\FRXQ WHUFORFNZLVH 6WRSILOOLQJWKHWDQNDIWHUWKHIXHOILOOHUSXPSDXWR PDWLFDOO\FOLFNVRII'RQRWDGGDQ\PRUHIXHO 3XWWKHFDSEDFNRQWXUQLWFORFNZLVHXQWLO\RXKHDU DFOLFNLQJVRXQG%HFHUWDLQQRWWRFDWFKWKHWHWKHUXQ GHUWKHFDSZKLOHWLJKWHQLQJ &ORVHWKHIXHOILOOHUGRRUFRPSOHWHO\ ,I\RXVSLOODQ\IXHORQWKHSDLQWHGVXUIDFHULQVHLWRII LPPHGLDWHO\2WKHUZLVHWKHSDLQWHGVXUIDFHFRXOGEH GDPDJHG
HS3023AA
y
6WDUWLQJDQGRSHUDWLQJ
GDPDJHWRWKHWXUERFKDUJHU
6WDWHHPLVVLRQWHVWLQJ86RQO\
7HVWLQJ RI DQ $OO:KHHO 'ULYH YHKLFOH PXVW 1(9(5EHSHUIRUPHGRQDVLQJOHWZRZKHHOG\ QDPRPHWHU $WWHPSWLQJ WR GR VR ZLOO UHVXOW LQ XQFRQWUROOHGYHKLFOHPRYHPHQWDQGPD\FDXVH DQDFFLGHQWRULQMXULHVWRSHUVRQVQHDUE\
5HVXOWDQWYHKLFOHGDPDJHGXHWRLPSURSHUWHVW LQJLVQRWFRYHUHGXQGHUWKH68%$58/LPLWHG :DUUDQW\DQGLV WKH UHVSRQVLELOLW\RI WKH VWDWH LQVSHFWLRQSURJUDPRULWVFRQWUDFWRUVRUOLFHQV HHV
$WVWDWHLQVSHFWLRQWLPHUHPHPEHUWRWHOO\RXULQ VSHFWLRQRUVHUYLFHVWDWLRQLQDGYDQFHQRWWRSODFH \RXU68%$58$:'YHKLFOHRQDWZRZKHHOG\QD PRPHWHU 2WKHUZLVH VHULRXV WUDQVPLVVLRQ GDP DJHZLOOUHVXOW
6RPH VWDWHV KDYH VWDUWHG XVLQJ G\QDPRPHWHUV LQ WKHLUVWDWHLQVSHFWLRQSURJUDPVLQRUGHUWRPHHWWKHLU
REOLJDWLRQXQGHUIHGHUDOODZWRLPSOHPHQWVWULFWHUYHKL
FOH HPLVVLRQ VWDQGDUGV WR UHGXFH DLU SROOXWLRQ IURP
FDUV$G\QDPRPHWHULVDWUHDGPLOORUUROOHUOLNHWHVWLQJ
GHYLFHWKDWDOORZV\RXUFDU¶VZKHHOVWRWXUQZKLOHWKH
FDUUHPDLQVLQRQHSODFH'HSHQGLQJRQWKHVHYHULW\RI
DVWDWH¶VDLUSROOXWLRQSUREOHPVWKHVWDWHVPXVWDGRSW
HLWKHU D ³EDVLF´ RU ³HQKDQFHG´ YHKLFOH HPLVVLRQ LQ
VSHFWLRQWHVW1RUPDOO\DSRUWLRQRIWKHEDVLFHPLVVLRQ
WHVWFRQVLVWVRIDQHPLVVLRQLQVSHFWRULQVHUWLQJDQDQ
DO\]HUSUREHLQWRWKHH[KDXVWSLSHRIDQLGOLQJYHKLFOH
IRUDVKRUWSHULRGRIWLPH6WDWHVZLWKPRUHVHYHUHDLU
SROOXWLRQSUREOHPVDUHUHTXLUHGWRDGRSWDQHQKDQFHG
YHKLFOHHPLVVLRQWHVW7KLVWHVWVLPXODWHVDFWXDOGULY
LQJ FRQGLWLRQV RQ D G\QDPRPHWHU DQG SHUPLWV PRUH
DFFXUDWH PHDVXUHPHQW RI WDLOSLSH HPLWWHG SROOXWLRQ
WKDQWKHEDVLFHPLVVLRQWHVW
7KH86(QYLURQPHQWDO3URWHFWLRQ$JHQF\(3$DQG
VWDWHV XVLQJ WZRZKHHO G\QDPRPHWHUV LQ WKHLU HPLV
VLRQ WHVWLQJ SURJUDPV KDYH (;(037(' 68%$58
$:'YHKLFOHVIURPWKHSRUWLRQRIWKHWHVWLQJSURJUDP
WKDWLQYROYHVDWZRZKHHOG\QDPRPHWHU
7KHUHDUHVRPHVWDWHVWKDWXVHIRXUZKHHOG\QDPRP HWHUVLQWKHLU WHVWLQJ SURJUDPV :KHQSURSHUO\ XVHG WKDWHTXLSPHQWZLOOQRWGDPDJHDQ$:'68%$58YH KLFOH
8QGHU QR FLUFXPVWDQFHV VKRXOG WKH UHDU ZKHHOV EH
6WDUWLQJDQGRSHUDWLQJ
MDFNHGRIIWKHJURXQGQRUVKRXOGWKHGULYHVKDIWEHGLV FRQQHFWHGIRUVWDWHHPLVVLRQWHVWLQJ
7KH(3$KDVLVVXHGUHJXODWLRQVIRULQVSHFWLQJWKH2Q %RDUG 'LDJQRVWLF 2%' V\VWHP DV SDUW RI WKH VWDWH HPLVVLRQVLQVSHFWLRQ7KH2%'V\VWHPLVGHVLJQHGWR GHWHFW HQJLQH DQG WUDQVPLVVLRQ SUREOHPV WKDW PLJKW FDXVH YHKLFOH HPLVVLRQV WR H[FHHG DOORZDEOH OLPLWV 7KHVH LQVSHFWLRQV DSSO\ WR DOO PRGHO \HDU DQG QHZHUSDVVHQJHUFDUVDQGOLJKWWUXFNV
y 7KHLQVSHFWLRQRIWKH2%'V\VWHPFRQVLVWVRIDYL VXDO RSHUDWLRQDO FKHFN RI WKH ³&+(&. (1*,1(´ ZDUQLQJOLJKWPDOIXQFWLRQLQGLFDWRUODPS0,/DQGDQ H[DPLQDWLRQ RI WKH 2%' V\VWHP ZLWK DQ HOHFWURQLF VFDQWRROZKLOHWKHHQJLQHLVUXQQLQJ y $ YHKLFOH SDVVHV WKH 2%' V\VWHP LQVSHFWLRQ LI SURSHUWKH³&+(&.(1*,1(´ZDUQLQJOLJKW0,/LOOX PLQDWLRQ LV REVHUYHG WKHUH LV QR VWRUHG GLDJQRVWLF WURXEOHFRGHVDQGWKH2%'V\VWHPUHDGLQHVVPRQL WRUVDUHFRPSOHWH y $ YHKLFOH IDLOV WKH 2%' LQVSHFWLRQ LI WKH ³&+(&. (1*,1(´ZDUQLQJOLJKW0,/LVQRWSURSHUO\RSHUDWLQJ RUWKHUHLVRQHRUPRUHGLDJQRVWLFWURXEOHFRGHVVWRUHG LQ YHKLFOH¶V FRPSXWHU ZLWK WKH ³&+(&. (1*,1(´ ZDUQLQJOLJKW0,/LOOXPLQDWHG y $VWDWHHPLVVLRQLQVSHFWLRQPD\UHMHFWQRWSDVVRU IDLODYHKLFOHLIWKHQXPEHURI2%'V\VWHPUHDGLQHVV
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
PRQLWRUV ³1RW 5HDG\´ LV JUHDWHU WKDQ WKUHH 8QGHU WKLVFRQGLWLRQWKHYHKLFOHRSHUDWRUVKRXOGEHLQVWUXFW HG WR GULYH KLVKHU YHKLFOH IRU D IHZ GD\V WR VHW WKH PRQLWRUVDQGUHWXUQIRUDQHPLVVLRQUHLQVSHFWLRQ y 2ZQHUVRIUHMHFWHGRUIDLOLQJYHKLFOHVVKRXOGFRQWDFW WKHLU68%$58'HDOHUIRUVHUYLFH
3UHSDULQJWRGULYH
&KHFN WKDW DOO ZLQGRZV PLUURUV DQG OLJKWV DUH FOHDQDQGXQREVWUXFWHG &KHFN WKH DSSHDUDQFH DQG FRQGLWLRQ RI WKH WLUHV $OVRFKHFNWLUHVIRUSURSHULQIODWLRQ /RRNXQGHUWKHYHKLFOHIRUDQ\VLJQRIOHDNV &KHFNWKDWWKHKRRGLVIXOO\FORVHG &KHFNWKHDGMXVWPHQWRIWKHVHDW &KHFNWKHDGMXVWPHQWRIWKHLQVLGHDQGRXWVLGHPLU URUV )DVWHQ\RXUVHDWEHOW&KHFNWKDW\RXUSDVVHQJHUV KDYHIDVWHQHGWKHLUVHDWEHOWV &KHFN WKH RSHUDWLRQ RI WKH ZDUQLQJ DQG LQGLFDWRU OLJKWVZKHQWKHLJQLWLRQVZLWFKLVWXUQHGWRWKH³21´SR VLWLRQ &KHFNWKHJDXJHVLQGLFDWRUDQGZDUQLQJOLJKWVDI WHUVWDUWLQJWKHHQJLQH
127( (QJLQHRLOHQJLQHFRRODQWEUDNHIOXLGZDVKHUIOX LGDQGRWKHUIOXLGOHYHOVVKRXOGEHFKHFNHGGDLO\ ZHHNO\RUDWIXHOVWRSV
6WDUWLQJWKHHQJLQH
'RQRWRSHUDWHWKHVWDUWHUPRWRUFRQWLQXRXVO\ IRUPRUHWKDQWHQVHFRQGV,IWKHHQJLQHIDLOVWR VWDUW DIWHU RSHUDWLQJ WKH VWDUWHU IRU ILYH WR WHQ VHFRQGV ZDLW IRU WHQ VHFRQGV RU PRUH EHIRUH WU\LQJDJDLQ
„ 6WDUWLQJWKHHQJLQHIRUDPDQXDOWUDQV
PLVVLRQYHKLFOH
$SSO\WKHSDUNLQJEUDNH 7XUQRIIXQQHFHVVDU\OLJKWVDQGDFFHVVRULHV 3UHVVWKHFOXWFKSHGDOWRWKHIORRUDQGVKLIWWKHVKLIW OHYHULQWRQHXWUDO +ROGWKHFOXWFKSHGDOWRWKHIORRUZKLOHVWDUWLQJWKHHQ JLQH 7KH VWDUWHU PRWRU ZLOO RQO\ RSHUDWH ZKHQ WKH FOXWFKSHGDOLVSUHVVHGIXOO\WRWKHIORRU 7XUQ WKH LJQLWLRQ VZLWFK WR WKH ³21´ SRVLWLRQ DQG FKHFNWKHRSHUDWLRQRIWKHZDUQLQJDQGLQGLFDWRUOLJKWV 5HIHU WR WKH ³:DUQLQJ DQG LQGLFDWRU OLJKWV´ VHFWLRQ FKDSWHU 7XUQ WKH LJQLWLRQ VZLWFK WR WKH ³67$57´ SRVLWLRQ ZLWKRXW GHSUHVVLQJ WKH DFFHOHUDWRU SHGDO 5HOHDVH
6WDUWLQJDQGRSHUDWLQJ
WKHNH\LPPHGLDWHO\DIWHUWKHHQJLQHKDVVWDUWHG
,IWKHHQJLQHGRHVQRWVWDUWZLWKLQWHQVHFRQGVZDLWD ZKLOHDQGWKHQWXUQWKHLJQLWLRQVZLWFKWRWKH³67$57´ SRVLWLRQDJDLQZKLOHGHSUHVVLQJWKHDFFHOHUDWRUSHGDO KDOIZD\GRZQ &RQILUP WKDW DOO ZDUQLQJ DQG LQGLFDWRU OLJKWV KDYH JRQHRIIDIWHUWKHHQJLQHKDVVWDUWHG7KHIXHOLQMHFWLRQ V\VWHPDXWRPDWLFDOO\ORZHUVWKHLGOHVSHHGDVWKHHQ JLQHZDUPVXS
127(IRU%$-$7XUER 7KHHQJLQHPD\EHGLIILFXOWWRVWDUWZKHQWKHEDW WHU\KDVEHHQGLVFRQQHFWHGDQGUHFRQQHFWHGIRU PDLQWHQDQFHRURWKHUSXUSRVHV7KLVGLIILFXOW\LV FDXVHG E\ WKH HOHFWURQLFDOO\ FRQWUROOHG WKURWWOH¶V VHOIGLDJQRVLVIXQFWLRQ7RRYHUFRPHLWNHHSWKH LJQLWLRQ VZLWFK LQ WKH ³21´ SRVLWLRQ IRU DSSUR[L PDWHO\VHFRQGVEHIRUHVWDUWLQJWKHHQJLQH
„ 6WDUWLQJWKHHQJLQHIRUDQDXWRPDWLF
WUDQVPLVVLRQYHKLFOH
,I \RX UHVWDUW WKH HQJLQH ZKLOH WKH YHKLFOH LV PRYLQJVKLIWWKHVHOHFWRUOHYHULQWRWKH³1´SR VLWLRQ'RQRWDWWHPSWWRSODFHWKHVHOHFWRUOHYHU ±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
RIDPRYLQJYHKLFOHLQWRWKH³3´SRVLWLRQ
$SSO\WKHSDUNLQJEUDNH 7XUQRIIXQQHFHVVDU\OLJKWVDQGDFFHVVRULHV 6KLIW WKH VHOHFWRU OHYHU WR WKH ³3´ RU ³1´ SRVLWLRQ SUHIHUDEO\³3´SRVLWLRQ7KHVWDUWHUZLOORQO\RSHUDWH ZKHQWKHVHOHFWOHYHULVDWWKH³3´RU³1´SRVLWLRQ 7XUQ WKH LJQLWLRQ VZLWFK WR WKH ³21´ SRVLWLRQ DQG FKHFNWKHRSHUDWLRQRIWKHZDUQLQJDQGLQGLFDWRUOLJKWV 5HIHU WR WKH ³:DUQLQJ DQG LQGLFDWRU OLJKWV´ VHFWLRQ FKDSWHU 7XUQ WKH LJQLWLRQ VZLWFK WR WKH ³67$57´ SRVLWLRQ ZLWKRXW GHSUHVVLQJ WKH DFFHOHUDWRU SHGDO 5HOHDVH WKHNH\LPPHGLDWHO\DIWHUWKHHQJLQHKDVVWDUWHG ,IWKHHQJLQHGRHVQRWVWDUWZLWKLQWHQVHFRQGVZDLWD ZKLOHDQGWKHQWXUQWKHLJQLWLRQVZLWFKWRWKH³67$57´ SRVLWLRQDJDLQZKLOHGHSUHVVLQJWKHDFFHOHUDWRUSHGDO KDOIZD\GRZQ &RQILUP WKDW DOO ZDUQLQJ DQG LQGLFDWRU OLJKWV KDYH JRQHRXWDIWHUWKHHQJLQHKDVVWDUWHG7KHIXHOLQMHF WLRQV\VWHPDXWRPDWLFDOO\ORZHUVWKHLGOHVSHHGDVWKH HQJLQHZDUPVXS
:KLOH WKH HQJLQH LV ZDUPLQJ XS PDNH VXUH WKDW WKH VHOHFWRUOHYHULVDWWKH³3´RU³1´SRVLWLRQDQGWKDWWKH SDUNLQJEUDNHLVDSSOLHG
127(IRU%$-$7XUER 7KHHQJLQHPD\EHGLIILFXOWWRVWDUWZKHQWKHEDW WHU\KDVEHHQGLVFRQQHFWHGDQGUHFRQQHFWHGIRU PDLQWHQDQFHRURWKHUSXUSRVHV7KLVGLIILFXOW\LV FDXVHG E\ WKH HOHFWURQLFDOO\ FRQWUROOHG WKURWWOH¶V VHOIGLDJQRVLVIXQFWLRQ7RRYHUFRPHLWNHHSWKH LJQLWLRQ VZLWFK LQ WKH ³21´ SRVLWLRQ IRU DSSUR[L PDWHO\VHFRQGVEHIRUHVWDUWLQJWKHHQJLQH
„ 6WDUWLQJWKHHQJLQHGXULQJFROGZHDWK
HUEHORZ±°)±°&
,IWKHHQJLQHLVGLIILFXOWWRVWDUWXVLQJWKHQRUPDOPHWK RGZLWKRXWGHSUHVVLQJWKHDFFHOHUDWRUSHGDOWXUQWKH LJQLWLRQ VZLWFK WR WKH ³67$57´ SRVLWLRQ ZKLOH VOLJKWO\ GHSUHVVLQJWKHDFFHOHUDWRUSHGDO
„ 6WDUWLQJDIORRGHGHQJLQH ,IWKHHQJLQHGRHVQRWVWDUWLWPD\EHIORRGHGH[FHV VLYHIXHOLQWKHHQJLQH ,QFDVHRIDIORRGHGHQJLQHWXUQWKHVWDUWHUPRWRUIRU ILYH VHFRQGV ZLWK WKH DFFHOHUDWRU SHGDO IXOO\ GH SUHVVHG5HSHDWWKLVWZRRUWKUHHWLPHVXQWLOWKH HQ JLQHVWDUWV5HOHDVHWKHLJQLWLRQVZLWFKDQGDFFHOHUD WRUSHGDODVVRRQDVWKHHQJLQHVWDUWV
6WRSSLQJWKHHQJLQH
0DQXDOWUDQVPLVVLRQ
6WDUWLQJDQGRSHUDWLQJ
'RQRWVWRSWKHHQJLQHZKHQWKHYHKLFOHLVPRY LQJ7KLVZLOOFDXVHORVVRISRZHUWRWKHSRZHU VWHHULQJ DQG WKH EUDNH ERRVWHU PDNLQJ VWHHU LQJDQGEUDNLQJPRUHGLIILFXOW,WFRXOGDOVRUH VXOWLQDFFLGHQWDODFWLYDWLRQRIWKH³/2&.´SR VLWLRQRQWKHLJQLWLRQVZLWFKFDXVLQJWKHVWHHU LQJZKHHOWRORFN
'RQRWGULYHWKHYHKLFOHZLWKWKHFOXWFKGLVHQ JDJHGLHZKHQWKHFOXWFKSHGDOLVGHSUHVVHG RU ZLWK WKH VKLIW OHYHU LQ WKH QHXWUDO SRVLWLRQ (QJLQHEUDNLQJKDVQRHIIHFWLQHLWKHURIWKHVH FRQGLWLRQVDQGWKHULVNRIDQDFFLGHQWLVFRQVH TXHQWO\LQFUHDVHG
7KHLJQLWLRQVZLWFKVKRXOGEHWXUQHGRIIRQO\ZKHQWKH HQJLQHLVLGOLQJ
6KLIW LQWR UHYHUVH 21/< ZKHQ WKH YHKLFOH KDV FRPSOHWHO\ VWRSSHG ,W PD\ FDXVH GDPDJH WR WKH WUDQVPLVVLRQ WR WU\ VKLIWLQJ LQWR UHYHUVH ZKHQWKHYHKLFOHLVPRYLQJ
7KHPDQXDOWUDQVPLVVLRQLVDIXOO\V\QFKURPHVKHG IRUZDUGDQGUHYHUVHVSHHGWUDQVPLVVLRQ
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
HS7008BA
7KH VKLIW SDWWHUQ LV VKRZQ RQ WKH VKLIW OHYHU NQRE :KHQVKLIWLQJIURPWKJHDUWRUHYHUVHJHDUILUVWUH WXUQWKHVKLIWOHYHUWRWKHQHXWUDOSRVLWLRQWKHQVKLIWLQWR UHYHUVHJHDU
7RFKDQJHJHDUVIXOO\GHSUHVVWKHFOXWFKSHGDOPRYH WKHVKLIWOHYHUDQGJUDGXDOO\OHWXSRQWKHFOXWFKSHGDO ,ILWLVGLIILFXOWWRVKLIWLQWRJHDUSXWWKHWUDQVPLVVLRQLQ QHXWUDO UHOHDVH WKH FOXWFK SHGDO PRPHQWDULO\ DQG WKHQWU\DJDLQ
„ 6KLIWLQJVSHHGV
T 5HFRPPHQGHGVKLIWLQJVSHHGV 7KHEHVWFRPSURPLVHEHWZHHQIXHOHFRQRP\DQGYH KLFOHSHUIRUPDQFHGXULQJQRUPDOGULYLQJLVHQVXUHGE\ VKLIWLQJXSDWWKHVSHHGVOLVWHGLQWKHIROORZLQJWDEOH
6KLIWXS
VWWRQG
QGWRUG
UGWRWK
WKWRWK
PSKNPK
T 0D[LPXPDOORZDEOHVSHHGV
:KHQVKLIWLQJGRZQDJHDUHQVXUHWKDWWKHYH KLFOHLVQRWWUDYHOOLQJDWDVSHHGH[FHHGLQJWKH 0D[LPXP $OORZDEOH 6SHHG IRU WKH JHDU ZKLFK LVDERXWWREHVHOHFWHG)DLOXUHWRREVHUYHWKLV SUHFDXWLRQFDQOHDGWRHQJLQHRYHUUHYYLQJDQG WKLVLQWXUQFDQUHVXOWLQHQJLQHGDPDJH ,Q DGGLWLRQ VXGGHQ DSSOLFDWLRQ RI HQJLQH EUDNHVZKHQWKHYHKLFOHLVWUDYHOOLQJRQDVOLS
SHU\ VXUIDFH FDQ OHDG WR ZKHHO ORFNLQJ DV D FRQVHTXHQFHFRQWURORIWKHYHKLFOHPD\EHORVW DQGWKHULVNRIDQDFFLGHQWLQFUHDVHG
7KHIROORZLQJWDEOHVKRZVWKHPD[LPXPVSHHGVWKDW DUHSRVVLEOHZLWKHDFKGLIIHUHQWJHDU
1HYHUH[FHHGWKHVSHHGOLPLWEHORZIRUHDFKJHDUSR VLWLRQ H[FHSW IRU EULHI DFFHOHUDWLRQ LQ DQ HPHUJHQF\ 7KHWDFKRPHWHU¶VQHHGOHLIVRHTXLSSHGZLOOHQWHUWKH UHGDUHDLIWKHVHVSHHGVDUHH[FHHGHG)DLOXUHWRRE VHUYH WKLV SUHFDXWLRQ FDQ OHDG WR H[FHVVLYH HQJLQH ZHDUDQGSRRUIXHOHFRQRP\
PSKNPK
*HDU
%$-$DQG%$-$6SRUW
%$-$7XUER
VW
QG
UG
1HYHUH[FHHGSRVWHGVSHHGOLPLWV
„ 'ULYLQJWLSV 'RQRWGULYHZLWK\RXUIRRWUHVWLQJRQWKHFOXWFKSHGDO
6WDUWLQJDQGRSHUDWLQJ
DQG GR QRW XVH WKH FOXWFK WR KROG \RXU YHKLFOH DW D VWDQGVWLOORQDQXSJUDGH(LWKHURIWKRVHDFWLRQVPD\ FDXVHFOXWFKGDPDJH 'RQRWGULYHZLWK\RXUKDQGUHVWLQJRQWKHVKLIWOHYHU 7KLV PD\ FDXVH ZHDU RQ WKH WUDQVPLVVLRQ FRPSR QHQWV
:KHQLWLVQHFHVVDU\WRUHGXFHYHKLFOHVSHHGGXHWR VORZWUDIILFWXUQLQJFRUQHUVRUGULYLQJXSVWHHSKLOOV GRZQVKLIWWRDORZHUJHDUEHIRUHWKHHQJLQHVWDUWVWR ODERU
2QVWHHSGRZQJUDGHVGRZQVKLIWWKHWUDQVPLVVLRQWR WKUGRUQGJHDUDVQHFHVVDU\WKLVKHOSVWRPDLQ WDLQDVDIHVSHHGDQGWRH[WHQGEUDNHSDGOLIH ,QWKLVZD\WKHHQJLQHSURYLGHVDEUDNLQJHIIHFW5H PHPEHULI\RX³ULGH´RYHUXVHWKHEUDNHVZKLOHGH VFHQGLQJDKLOOWKH\PD\RYHUKHDWDQGQRWZRUNSURS HUO\
7KHHQJLQHPD\RQUDUHRFFDVLRQVNQRFNZKHQWKH YHKLFOHUDSLGO\DFFHOHUDWHVRUUDSLGO\SXOOVDZD\IURP D VWDQGVWLOO 7KLV SKHQRPHQRQ GRHV QRW LQGLFDWH D IDXOW
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
$XWRPDWLFWUDQVPLVVLRQ%$-$ %$-$6SRUW
VLRQ
7KHDXWRPDWLFWUDQVPLVVLRQLVHOHFWURQLFDOO\FRQWUROOHG ZLWKIRUZDUGVSHHGVDQGUHYHUVHVSHHG
127( ,PPHGLDWHO\DIWHUDGLVFRQQHFWHGEDWWHU\LVUHFRQ QHFWHGRU$7)DXWRPDWLFWUDQVPLVVLRQIOXLGLVUH SODFHG\RXPD\IHHOWKDWWKHDXWRPDWLFWUDQVPLV VLRQRSHUDWLRQLVVRPHZKDWXQXVXDO 7KLV UHVXOWV IURP HUDVXUH RU LQYDOLGDWLRQ RI GDWD WKHRQERDUGFRPSXWHUKDVFROOHFWHGDQGVWRUHGLQ PHPRU\ WR DOORZ WKH WUDQVPLVVLRQ WR VKLIW DW WKH PRVW DSSURSULDWH WLPHV IRU WKH FXUUHQW FRQGLWLRQ RI\RXUYHKLFOH2SWLPL]HGVKLIWLQJZLOOEHUHVWRUHG DVWKHYHKLFOHFRQWLQXHVWREHGULYHQIRUDZKLOH
'R QRW VKLIW IURP WKH ³3´ RU ³1´ SRVLWLRQ LQWR WKH³'´³´³´³´RU³5´SRVLWLRQZKLOHGH SUHVVLQJWKHDFFHOHUDWRUSHGDO7KLVPD\FDXVH WKHYHKLFOHWRMXPSIRUZDUGRUEDFNZDUG
y 6KLIW LQWR WKH ³3´ RU ³5´ SRVLWLRQ RQO\ DIWHU WKH YHKLFOH LV FRPSOHWHO\ VWRSSHG 6KLIWLQJ ZKLOHWKHYHKLFOHLVPRYLQJPD\FDXVHGDPDJH WRWKHWUDQVPLVVLRQ y 'RQRWUDFHWKHHQJLQHIRUPRUHWKDQILYHVHF RQGVLQDQ\SRVLWLRQH[FHSWWKH³1´RU³3´SR VLWLRQZKHQWKHEUDNHLVVHWRUWKHWLUHVDUHRQ EORFNV7KLVPD\FDXVHWKHDXWRPDWLFWUDQVPLV VLRQIOXLGWRRYHUKHDW y $YRLGVKLIWLQJIURPRQHRIWKHIRUZDUGGULYLQJ SRVLWLRQVLQWRWKH³5´SRVLWLRQRUYLFHYHUVDXQ WLO WKH YHKLFOH KDV FRPSOHWHO\ VWRSSHG 6XFK VKLIWLQJ PD\ FDXVH GDPDJH WR WKH WUDQVPLV
„ 6HOHFWRUOHYHU
6WDUWLQJDQGRSHUDWLQJ
HS7009AA
:LWKWKHEUDNHSHGDOGHSUHVVHGPRYHWKHOHYHU
DORQJWKHJDWH
0RYHWKHOHYHUDORQJWKHJDWH
HS7010BA
7KHVHOHFWRUOHYHUKDVVHYHQSRVLWLRQV
T 33DUN 7KLVSRVLWLRQLVIRUSDUNLQJWKHYHKLFOHDQGVWDUWLQJWKH HQJLQH
,Q WKLV SRVLWLRQ WKH WUDQVPLVVLRQ LV PHFKDQLFDOO\ ORFNHGWRSUHYHQWWKHYHKLFOHIURPUROOLQJIUHHO\
:KHQ\RXSDUNWKHYHKLFOHILUVWVHWWKHSDUNLQJEUDNH IXOO\WKHQVKLIWLQWRWKH³3´SRVLWLRQ'RQRWKROGWKHYH KLFOHZLWKRQO\WKHWUDQVPLVVLRQ
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
$VKLIWLQWHUORFNIXQFWLRQLVHPSOR\HGLQWKHDXWRPDWLF WUDQVPLVVLRQV\VWHPWRHQVXUHVDIHVWDUWLQJRIWKHYH KLFOH
7RVKLIWWKHVHOHFWRUOHYHUIURPWKH³3´WRWKHDQ\RWKHU SRVLWLRQ \RX KDYH WR GHSUHVV WKH EUDNH SHGDO IXOO\ ZKHQWKHLJQLWLRQVZLWFKLV LQWKH³21´ SRVLWLRQ 7KLV SUHYHQWVWKHYHKLFOHIURPOXUFKLQJZKHQLWLVVWDUWHG
,IWKHVKLIWOHYHUGRHVQRWPRYHIURPWKH³3´SRVLWLRQ ZLWKWKHEUDNHSHGDOGHSUHVVHGUHIHUWRWKH³6KLIWORFN UHOHDVH´VHFWLRQLQWKLVFKDSWHU
T 55HYHUVH 7KLVSRVLWLRQLVIRUEDFNLQJWKHYHKLFOH
7RVKLIWIURP³1´WR³5´SRVLWLRQILUVWVWRSWKHYHKLFOH FRPSOHWHO\WKHQPRYHWKHOHYHUWR³5´SRVLWLRQ
T 11HXWUDO
'RQRWGULYHWKHYHKLFOHZLWKWKHVHOHFWRUOHYHU LQ WKH ³1´ QHXWUDO SRVLWLRQ (QJLQH EUDNLQJ KDVQRHIIHFWLQWKLVFRQGLWLRQDQGWKHULVNRIDQ DFFLGHQWLVFRQVHTXHQWO\LQFUHDVHG
7KLVSRVLWLRQLVIRUUHVWDUWLQJDVWDOOHGHQJLQH
,Q WKLV SRVLWLRQ WKH ZKHHOV DQG WUDQVPLVVLRQ DUH QRW ORFNHG,QWKLVSRVLWLRQWKHWUDQVPLVVLRQLVQHXWUDOWKH YHKLFOHZLOOUROOIUHHO\HYHQRQWKHVOLJKWHVWLQFOLQHXQ OHVVWKHSDUNLQJEUDNHRUIRRWEUDNHLVRQ $YRLGFRDVWLQJZLWKWKHWUDQVPLVVLRQQHXWUDO 'XULQJFRDVWLQJWKHHQJLQHEUDNLQJGRHVQRWDFW
T ''ULYH 7KLVSRVLWLRQLVIRUQRUPDOGULYLQJ 7KH WUDQVPLVVLRQ DXWRPDWLFDOO\ VKLIWV LQWR D VXLWDEOH JHDU IURP VW WR WK DFFRUGLQJ WR WKH YHKLFOH VSHHG DQGWKHDFFHOHUDWLRQ\RXUHTXLUH
:KHQ PRUH DFFHOHUDWLRQ LV UHTXLUHG LQ WKLV SRVLWLRQ SUHVVWKHDFFHOHUDWRUSHGDOIXOO\WRWKHIORRUDQGKROG WKDW SRVLWLRQ 7KH WUDQVPLVVLRQ ZLOO DXWRPDWLFDOO\ GRZQVKLIWWRUGQGRUVWJHDU:KHQ\RXUHOHDVH WKH SHGDO WKH WUDQVPLVVLRQ ZLOO UHWXUQ WR WKH RULJLQDO JHDUSRVLWLRQ
V :KLOHFOLPELQJDJUDGH :KHQGULYLQJXSDKLOOXQGHVLUHGXSVKLIWWRWKJHDULV SUHYHQWHG IURP WDNLQJ SODFH ZKHQ WKH DFFHOHUDWRU LV UHOHDVHG 7KLV PLQLPL]HV WKH FKDQFH RI VXEVHTXHQW GRZQVKLIWLQJWRDORZHUJHDUZKHQDFFHOHUDWLQJDJDLQ 7KLVSUHYHQWVUHSHDWHGXSVKLIWLQJDQGGRZQVKLIWLQJUH VXOWLQJLQDVPRRWKHURSHUDWLRQRIWKHYHKLFOH
127( 7KH WUDQVPLVVLRQ PD\ GRZQVKLIW WR QG RU VW JHDUGHSHQGLQJRQWKHZD\WKHDFFHOHUDWRUSHGDO LVSUHVVHGWRDFFHOHUDWHWKHYHKLFOHDJDLQ
V :KLOHJRLQJGRZQDKLOO :KHQ GHVFHQGLQJ D VWHHS KLOO GHSUHVVLQJ WKH EUDNH SHGDOZLOOFDXVHWKHWUDQVPLVVLRQWRGRZQVKLIWWRUG JHDUWKXVDSSO\LQJHQJLQHEUDNLQJ5HDFFHOHUDWLRQIRU DVKRUWWLPHZLOOFDXVHWKHWUDQVPLVVLRQWRXSVKLIWQRU PDOO\
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
6WDUWLQJDQGRSHUDWLQJ
T 7KLUG 7KLV SRVLWLRQLV IRUXVLQJ HQJLQHEUDNLQJZKHQJRLQJ GRZQDKLOORUIRUFOLPELQJDJUDGH 7KH WUDQVPLVVLRQ DXWRPDWLFDOO\ VKLIWV LQWR D VXLWDEOH JHDU IURP VW WR UG DFFRUGLQJ WR WKH YHKLFOH VSHHG DQGWKHDFFHOHUDWLRQ\RXUHTXLUH
:KHQ PRUH DFFHOHUDWLRQ LV UHTXLUHG LQ WKLV SRVLWLRQ SUHVVWKHDFFHOHUDWRUSHGDOIXOO\WRWKHIORRUDQGKROG WKDW SRVLWLRQ 7KH WUDQVPLVVLRQ ZLOO DXWRPDWLFDOO\ GRZQVKLIW WR QG RU VW JHDU :KHQ \RX UHOHDVH WKH SHGDOWKHWUDQVPLVVLRQZLOOUHWXUQWRWKHRULJLQDOJHDU SRVLWLRQ
T 6HFRQG 7KLV SRVLWLRQLV IRUXVLQJ HQJLQHEUDNLQJZKHQJRLQJ GRZQDKLOORUIRUFOLPELQJDVWHHSJUDGH ,QWKLVSRVLWLRQWKHWUDQVPLVVLRQKROGVLQWKHQGJHDU 8VHWKLVSRVLWLRQZKHQVWDUWLQJRIIIURPDVWDQGVWLOORQ VOLSSHU\URDGVXUIDFHVVXFKDVPXGRUVQRZ,WZLOOHQ VXUHJUHDWHUWUDFWLRQ
T )LUVW 7KLV SRVLWLRQ LV IRU GULYLQJ XS RU GRZQ YHU\ VWHHS JUDGHVRUGULYLQJWKURXJKPXGRUVDQGRURQVOLSSHU\ VXUIDFHV,QWKLVSRVLWLRQWKHWUDQVPLVVLRQKROGVLQWKH VWJHDU
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ
T 0D[LPXPVSHHGV
:KHQVKLIWLQJGRZQDJHDUHQVXUHWKDWWKHYH KLFOHLVQRWWUDYHOOLQJDWDVSHHGH[FHHGLQJWKH 0D[LPXP $OORZDEOH 6SHHG IRU WKH JHDU ZKLFK LVDERXWWREHVHOHFWHG)DLOXUHWRREVHUYHWKLV SUHFDXWLRQFDQOHDGWRHQJLQHRYHUUHYYLQJDQG WKLVLQWXUQFDQUHVXOWLQHQJLQHGDPDJH ,Q DGGLWLRQ VXGGHQ DSSOLFDWLRQ RI HQJLQH EUDNHVZKHQWKHYHKLFOHLVWUDYHOOLQJRQDVOLS SHU\ VXUIDFH FDQ OHDG WR ZKHHO ORFNLQJ DV D FRQVHTXHQFHFRQWURORIWKHYHKLFOHPD\EHORVW DQGWKHULVNRIDQDFFLGHQWLQFUHDVHG
7KHIROORZLQJWDEOHVVKRZWKHPD[LPXPVSHHGVWKDW DUHSRVVLEOHZLWKHDFKGLIIHUHQWJHDU
:KHQVKLIWLQJGRZQDJHDULWLVLPSRUWDQWWRFRQILUP WKDWWKHFXUUHQWYHKLFOHVSHHGLVQRWLQH[FHVVRIWKH 0D[LPXP$OORZDEOH6SHHGRIWKHJHDUZKLFKLVDERXW WREHVHOHFWHG
3RVLWLRQ
%$-$%$-$6SRUW
PSKNPK
1HYHUH[FHHGSRVWHGVSHHGOLPLWV
127( ,QRUGHUWRSUHYHQWRYHUUHYYLQJGXULQJGHFHOHUD WLRQRIWKHYHKLFOHWKHWUDQVPLVVLRQZLOOUHPDLQLQ WKHFXUUHQWJHDULIWKHVSHHGRIWKHYHKLFOHLVLQH[ FHVVRIWKH0D[LPXP$OORZDEOH6SHHGIRUWKHJHDU WRZKLFKWKHVHOHFWRUOHYHUKDVEHHQPRYHG
„ 'ULYLQJWLSV y $OZD\VDSSO\WKHIRRWRUSDUNLQJEUDNHZKHQWKHYH KLFOHLVVWRSSHGLQWKH³'´³´³´³´RU³5´SRVLWLRQ y $OZD\VVHWWKHSDUNLQJEUDNHZKHQSDUNLQJ\RXUYH KLFOH'RQRWKROGWKHYHKLFOHZLWKRQO\WKHWUDQVPLV VLRQ y 'RQRWNHHSWKHYHKLFOHLQDVWDWLRQDU\SRVLWLRQRQ DQXSKLOOJUDGHE\XVLQJWKH³'´³´³´RU³´SRVLWLRQ 8VHWKHEUDNHLQVWHDG
7KHHQJLQHPD\RQUDUHRFFDVLRQVNQRFNZKHQWKH YHKLFOHUDSLGO\DFFHOHUDWHVRUUDSLGO\SXOOVDZD\IURP D VWDQGVWLOO 7KLV SKHQRPHQRQ GRHV QRW LQGLFDWH D IDXOW
„ 6KLIWORFNUHOHDVH ,IWKHVHOHFWRUOHYHUGRHVQRWPRYHIURPWKH³3´SRVL WLRQ ZLWK WKH EUDNH SHGDO GHSUHVVHG DQG WKH LJQLWLRQ VZLWFK LQ WKH ³21´ SRVLWLRQ SHUIRUP WKH IROORZLQJ VWHSV 7RRYHUULGHWKHVKLIWORFN 6HWWKHSDUNLQJEUDNHDQGVWRSWKHHQJLQH 7DNHRXWWKHVFUHZGULYHUIURPWKHWRROEDJ 5HPRYHWKHFRYHUE\SU\LQJRQWKHHGJHZLWKWKH UHJXODUVFUHZGULYHU
6WDUWLQJDQGRSHUDWLQJ
HS7009BA
,QVHUWWKHVFUHZGULYHULQWRWKHKROH
HS7011BA
±&217,18('±
6WDUWLQJDQGRSHUDWLQJ