KAM XL - Kantronics

Transcription

KAM XL - Kantronics
.$17521,&6
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
.$0;/
*HWWLQJ6WDUWHG
$QG
5HIHUHQFH0DQXDOV
.DQWURQLFV&R,QF
(UG 6WUHHW
/DZUHQFH.DQVDV
ZZZNDQWURQLFVFRP
7DEOHRI&RQWHQWV
&RQWDFW,QIRUPDWLRQ
6DOHV,QTXLULHV
7HFKQLFDO6XSSRUW
'LVFODLPHU1RWLFH .DQWURQLFV:DUUDQW\5HJLVWUDWLRQ :DUUDQW\5HJLVWUDWLRQ
/DVW1DPHBBBBBBBBBBBBBBBBBBBBBBBB
&LW\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7HOHSKRQHBBBBBBBBBBBBBBBBBB
'DWHRI3XUFKDVHBBBBBBBBBBBBBBBB
'HDOHUBBBBBBBBBBBBBB /LFHQVH$JUHHPHQW /LPLWHG:DUUDQW\
$SSOLFDEOH:DUUDQW\3HULRG2QH\HDUIURPGDWHRISXUFKDVH
5HWXUQ5HSDLU3URFHGXUHV
&KHFN/LVWIRU3RVVLEOH3UREOHPV
5HWXUQ3URFHGXUHV
5HSDLU6HUYLFH&KDUJHV
,QWHUQDWLRQDO5HWXUQV
5DGLR)UHTXHQF\,QWHUIHUHQFH6WDWHPHQW
5),6XSSUHVVLRQ
,QWURGXFWLRQ
$356GLJLSHDWHU /DUJH3%%6 (PDLO 6RIWZDUHFRQWURO
&RQILJXUDWLRQV 8VHUV*XLGH ,QVWDOODWLRQ 3DFNDJH&RQWHQWV
$GGLWLRQDO3DUWV5HTXLUHGIRUD0XOWL0RGH5DGLR6WDWLRQ 7KH0DMRU&RPSRQHQWVRIWKH6WDWLRQ
7KH)URQWSDQHORIWKH.$0;/
7KHUHDUSDQHORIWKH.$0;/ &211(&7,1*7+(.$0;/ 72$32:(56285&( &211(&7,1*7+(.$0;/ 72$&20387(5 7KH&RPSXWHU 7KH6HULDO3RUWRIWKH&RPSXWHU 7KH6HULDO&DEOH ,QVWDOOLQJWKH56&DEOH
7KH7HUPLQDO3URJUDP
&211(&7,1*7+(.$0;/ 7275$16&(,9(56
.$0;/ 5DGLRSRUWV
7KH7UDQVFHLYHUV 3DUWVIRUFRQQHFWLQJWKH7UDQVFHLYHU
7+($8;3257
&211(&7,1*$*36'(9,&(
,QWHUIDFH&RPPXQLFDWLRQPRGHVRIWKH.$0;/ 7HUPLQDO0RGH .DQWURQLFV+RVW0RGH
([LWLQJ+RVWPRGH .,660RGH ([LWLQJ.,66PRGH 5HIHUHQFHVRQ.,660RGH
;.,66([WHQGHG.,660RGH &20081,&$7,2102'(6,17+(.$0;/
3DFNHW0RGH 3URWRFROIRU$PDWHXU3DFNHW5DGLR$; &RQQHFWHGYV8QSURWR 0RQLWRULQJDQG&DOOLQJ&4 $6LPSOH&RQQHFW
'LJLSHDWLQJ *DWHZD\V
0XOWL&RQQHFWV 5RXQG7DEOH'LVFXVVLRQV
6HOHFWLYH0RQLWRULQJ
7LPLQJ
7;'(/$< )5$&.)UDPH$FNQRZOHGJPHQW7LPH
)5$&.QVHFRQGV
5HWULHVLQ$;/HYHO9HUVLRQYV9HUVLRQ
&RQYHUV0RGHYV7UDQVSDUHQW0RGH
([LWLQJ7UDQVSDUHQW0RGH )ORZ&RQWURO
6RIWZDUH)ORZ&RQWURO
+DUGZDUH)ORZ&RQWURO 5HPRWH$FFHVV
2WKHU3DFNHW0RGHVRI2SHUDWLRQ
3%%63HUVRQDO0DLOER[
8VLQJWKH3%%6 (QWHULQJ0HVVDJHV 3%%6&RPPDQGV 6HQGLQJ0HVVDJHV
/LVWLQJ0HVVDJHV
(GLWLQJ0HVVDJH+HDGHUV
5HYHUVH)RUZDUGLQJ0HVVDJHVIURPWKH0DLOER[ +LHUDUFKLFDO$GGUHVVHV $GYDQFHG&RQILJXUDWLRQRIWKH3%%6
5HPRWH6<623$FFHVVWRWKH3%%6
5RXWLQJ/LQHV
.$12'( &RQILJXULQJ7KH.$1RGH
8VLQJD.$1RGH 8VLQJWKH;&211(&7&RPPDQG
'HWHUPLQLQJ:KLFK3RUW<RX+DYH&RQQHFWHG7R 'HWHUPLQLQJ:KLFK3RUW<RX+DYH&RQQHFWHG7R .$1RGH&RPPDQGVIRU5HPRWH8VH .1(7 .1HW&RQILJXUDWLRQ
1HWZRUNLQJWHUPV .1HW6<623FRPPDQGV
.1HW86(5FRPPDQGV
*3610($,QWHUIDFLQJ
*36(TXLSPHQW5HTXLUHPHQWV &DEOLQJD*368QLWWRWKH.$0;/ &RQILJXULQJWKH*36&RPPDQGV
2WKHU*36)HDWXUHV *36&RPPDQG6XPPDU\
*36'HYLFH0DQXIDFWXUHVDQGYHQGRUV
$GYDQFHG*36$356'LJLSHDWLQJ
,PSURYLQJ(IILFLHQFLHVRI$GYDQFHG'LJLSHDWLQJ 2YHUYLHZRI8,'LJLSHDWLQJ&RPPDQGV &RQILJXULQJ'LJLVIRU+)9+)*DWHZD\2SHUDWLRQV
%LEOLRJUDSK\ *HQHUDO,QIRUPDWLRQ
7HFKQLFDO,QIRUPDWLRQ
27+(5)81&7,216
7(/(0(75<
5HPRWH&RQWURO
&RS\LQJ1:6(0:,1:HDWKHU%URDGFDVWV
'$0$ %LEOLRJUDSK\ +)0RGHV1RQ3DFNHW
7XQLQJLQWRUHFHLYHGVLJQDOV ([LWLQJQRQSDFNHWPRGHV
&:
5HFHLYLQJ&:
7XQLQJLQDUHFHLYHGVLJQDO
7UDQVPLWWLQJ&: &:'LUHFWLYHV 577<
5HFHLYLQJ577<
7XQLQJ577<VLJQDOV 7UDQVPLWWLQJ577< 577<'LUHFWLYHV
0$56)HDWXUH $6&,,
5HFHLYLQJ$6&,,
7XQLQJ$6&,,VLJQDOV 7UDQVPLWWLQJ$6&,, $6&,,'LUHFWLYHV
$0725LQFOXGHV/$0725)(&6(/)(&1$97(; $07252SHUDWLRQ
&DOOLQJ&4 $QVZHULQJD&4
0RGH%)(&2SHUDWLRQ 0RGH%6(/)(&2SHUDWLRQ 5HFHLYLQJ0RGH%6(/)(&
7UDQVPLWWLQJ0RGH%6(/)(& /LVWHQ$0725RSHUDWLRQ
1RWHVRQ$0725RSHUDWLRQ
$0725GLUHFWLYHV 1$97(;GLUHFWLYHV 3DFWRU2SHUDWLRQ 7XQLQJ3DFWRUVLJQDOV
0RQLWRULQJ3DFWRU)(&
&DOOLQJ&4RU7UDQVPLWWLQJ)(&
/LQNLQJWRDQRWKHUVWDWLRQ 37/,67(10RGH
*725DQG*021
7XQLQJ*725
0RQLWRULQJ*725
/LQNLQJWRDQRWKHUVWDWLRQLQ*725
6SHHGFKDQJHV
*725PDLOER[ )RUPDWWLQJ'DWD +LQWVIRU*7252SHUDWLRQ
%LQDU\)LOHVDQG*725
6XPPDU\RI*725'LUHFWLYHV 36.
7XQLQJ36.6LJQDOV
7UDQVPLWWLQJ36. ([LWLQJ36.PRGH 36.'LUHFWLYHV
.DQWURQLFV.$0;/ &RPPDQG6HW $SSHQGL[$,QVWDOODWLRQ
&RQQHFWLQJWR5DGLRV
,QWHUIDFLQJ+DQG+HOG5DGLRV 3RUW+)DQG3DFNHW 7UDQVPLWOHYHO $SSHQGL[%$GYDQFHG,QIRUPDWLRQ
'LVDVVHPEO\DQG$VVHPEO\ +DUG5HVHW 8SGDWLQJ8SORDGLQJQHZ)LUPZDUH &DOLEUDWLRQ 3RUW 3RUW 3773XVKWR7DON:DWFKGRJ7LPHU
-XPSHUV
-XPSHU'HVFULSWLRQV $SSHQGL[&
5HSODFLQJWKH/LWKLXP%DWWHU\
$SSHQGL[',Q&DVHRI'LIILFXOW\
$SSHQGL[($GGLWLRQDO,QIRUPDWLRQ
&RQWDFW,QIRUPDWLRQ
.DQWURQLFV
(UG6WUHHW
/DZUHQFH.DQVDV
6DOHV,QTXLULHV
3KRQHDPWRSP&HQWUDO6WDQGDUG7LPH0)
)D[
(PDLOVDOHV#NDQWURQLFVFRP
ZZZNDQWURQLFVFRP
7HFKQLFDO6XSSRUW
3KRQHSP&HQWUDO6WDQGDUG7LPH0)
)D[
(PDLOVHUYLFH#NDQWURQLFVFRP
7KH.DQWURQLFV.$0;/ LVPDQXIDFWXUHGLQWKH86$
$OOEUDQGVDQGSURGXFWQDPHVDUHWUDGHPDUNVRIWKHUHVSHFWLYHFRPSDQLHV
7KH.$0;/ LVD.DQWURQLFVKDUGZDUHDQGVRIWZDUHGHVLJQLQFRUSRUDWLQJWKH$;3DFNHWSURWRFRO
DVDGRSWHGE\WKH$PHULFDQ5DGLR5HOD\/HDJXH
.$0;/DQG3DFWHUP.1(7DQG*725DUHWUDGHPDUNVRI.DQWURQLFV&R,QF
1(7520LVDUHJLVWHUHGWUDGHPDUNRI62)7:$5(
$356LVDUHJLVWHUHGWUDGHPDUNRI%RE%UXQLQJD:%$35
36.LVDGHVLJQRI3HWHU0DUWLQH]*3/;
$63(&,$/7+$1.672
3HWHU0DUWLQH]*3/;IRUKLVFRQVXOWDWLRQDQGGLUHFWLRQRILPSOHPHQWDWLRQRIWKH36.LQ
WKH.$0 ;/ 71&
.DQWURQLFV%HWD7HVWHUVIRUWKH.$0 ;/
%HUW$PHUR9($0$
+DUYH\1LGD\.78(
5LFN5XKO:3&
'LVFODLPHU1RWLFH
:HKDYHDWWHPSWHGWRPDNHWKLVPDQXDOWHFKQLFDOO\DQGW\SRJUDSKLFDOO\FRUUHFWDVRIWKHGDWHRIWKH
FXUUHQWSULQWLQJ3URGXFWLRQFKDQJHVWRWKH.$0;/ PD\DGGFKDQJHVWRWKHPDQXDODWDODWHUGDWH
6HQGFRPPHQWVRUVXJJHVWFRUUHFWLRQVWR.DQWURQLFV&R,QF(UG6WUHHW/DZUHQFH.6
RUHPDLOVDOHV#NDQWURQLFVFRP
,QIRUPDWLRQLQWKLVGRFXPHQWLVVXEMHFWWRFKDQJHZLWKRXWQRWLFH
&RQWHQWVRIWKLVSXEOLFDWLRQRUWKHILUPZDUHZLWKLQWKH.$0;/ PD\QRWEHUHSURGXFHGLQDQ\IRUP
ZLWKRXWWKHZULWWHQSHUPLVVLRQRIWKHFRS\ULJKWRZQHU
3ULQWHGLQWKH8QLWHG6WDWHVRI$PHULFD
.DQWURQLFV:DUUDQW\5HJLVWUDWLRQ
3OHDVHWDNHWKHWLPHWRILOORXWWKHZDUUDQW\UHJLVWUDWLRQIRUPRUDFRS\RIWKHIRUPDQGPDLOLWWR
.DQWURQLFVLQFOXGLQJDFRS\RI\RXUVDOHVUHFHLSWWRUHJLVWHU\RXUSXUFKDVH.DQWURQLFVPXVWUHFHLYH
ZDUUDQW\UHJLVWUDWLRQZLWKLQGD\VRISXUFKDVHRIWKH.DQWURQLFV.$0;/ WREHYDOLG%RWKPXVWEH
RQILOHDW.DQWURQLFVLQRUGHUIRU\RXWRUHFHLYHZDUUDQW\VHUYLFH5HIHUWRWKHZDUUDQW\SROLF\LQWKLV
PDQXDOIRUIXUWKHULQIRUPDWLRQ
0DLOIRUPDQGVDOHVUHFHLSWWR
.DQWURQLFV
(UG 6WUHHW
/DZUHQFH.6
:DUUDQW\5HJLVWUDWLRQ
/DVW1DPHBBBBBBBBBBBBBBBBBBBBBBBB
)LUVW1DPHBBBBBBBBBBBBBBBBBBBBBBBB
0DLOLQJ$GGUHVV
&DOO6LJQBBBBBBBBBBBBBBBBBBB
&LW\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBB7HOHSKRQHBBBBBBBBBBBBBBBBBB
6WDWHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
=LS3RVWDO&RGHBBBBBBBBBBBBBBBBBBBBB
(0DLOBBBBBBBBBBBBBBBBBBBBBBBBB
&RXQWU\BBBBBBBBBBBBBBBBBBBBBBBBBBBB
3URGXFW.DP;/
6HULDOBBBBBBBBBBBBB
'DWHRI3XUFKDVHBBBBBBBBBBBBBBBB
'HDOHUBBBBBBBBBBBBBB
,03257$175($'7+,63$*(%()25(,167$//,1*7+,6
.$17521,&6352'8&7
7KLVSURGXFWFRQWDLQV62)7:$5(RQ3URJUDPPDEOH0HPRU\520DQGRUGLVNHWWHZKLFKLV
SURWHFWHGE\ERWK8QLWHG6WDWHVFRS\ULJKWODZDQGLQWHUQDWLRQDOWUHDW\SURYLVLRQV
,I\RXLQVWDOORUXVHWKLVSURGXFW\RXZLOOEHGHHPHGWREHERXQGE\WKHWHUPVRIWKH62)7:$5(
OLFHQVHVKRZQEHORZ,I\RXGRQRWZLVKWREHERXQGE\VXFKOLFHQVHUHWXUQWKHXQXVHGFRPSOHWH
SURGXFWSDFNDJHWR\RXUVXSSOLHUIRUUHIXQG7KHVXSSOLHUPD\GHGXFWUHVWRFNLQJUHSDFNDJLQJFRVWV
/LFHQVH$JUHHPHQW
/LFHQVH,QFRQVLGHUDWLRQRISD\PHQWRIWKH/LFHQVH)HHZKLFKLVLQFOXGHGLQWKHSULFHRIWKH
SURGXFWWKH/LFHQVHH\RXLVJUDQWHGE\WKH/LFHQVRU.DQWURQLFV&RPSDQ\,QF.DQWURQLFVDQRQ
H[FOXVLYHULJKWWRXVHWKH62)7:$5(DQGDVVRFLDWHGGRFXPHQWDWLRQ1RRZQHUVKLSULJKWVWRWKH
62)7:$5(RULWV'RFXPHQWDWLRQDUHWUDQVIHUUHGIURP.DQWURQLFVWR\RX
7HUP7KLV/LFHQVH$JUHHPHQWLVHIIHFWLYHXQWLOWHUPLQDWHG<RXPD\WHUPLQDWHWKLV$JUHHPHQWE\
GHVWUR\LQJWKH3520RUGLVNHWWHDQGGRFXPHQWDWLRQ<RXPD\QRWUHQWRUOHDVHWKH62)7:$5(EXW
\RXPD\WUDQVIHUWKH62)7:$5(DQGDFFRPSDQ\LQJZULWWHQPDWHULDOVRQDSHUPDQHQWEDVLVSURYLGHG
\RXUHWDLQQRFRSLHVDQGWKHUHFLSLHQWDJUHHVWRWKHWHUPVRIWKLV$JUHHPHQW.DQWURQLFVPD\WHUPLQDWH
WKLV$JUHHPHQWZLWKRXWQRWLFHLI\RXYLRODWHDQ\WHUPVRUFRQGLWLRQVRIWKHDJUHHPHQW,QWKHHYHQWRI
WHUPLQDWLRQRIWKH$JUHHPHQWSURYLVLRQVUHODWLQJWR.DQWURQLFV
GLVFODLPHUVRIZDUUDQWLHVOLPLWDWLRQ
RIOLDELOLW\UHPHGLHVRUGDPDJHVDQG.DQWURQLFV
SURSULHWDU\ULJKWVVKDOOVXUYLYH
2EMHFW&RGH7KH62)7:$5(LVGHOLYHUHGLQREMHFWFRGHRQO\<RXVKDOOQRWUHYHUVHFRPSLOHRU
RWKHUZLVHUHYHUVHHQJLQHHUWKH62)7:$5(
/LPLWHG:DUUDQW\7KLVSURGXFWLVFRYHUHGE\WKHVWDQGDUG.DQWURQLFV&R,QF/LPLWHG:DUUDQW\
ZKLFKLVHQFORVHG
*HQHUDO7KLV/LFHQVH$JUHHPHQWFRQVWLWXWHVWKHFRPSOHWH$JUHHPHQWEHWZHHQ\RXDQG.DQWURQLFV
7KH62)7:$5(DQGRU'RFXPHQWDWLRQPD\QRWEHH[SRUWHGRUUHH[SRUWHGLQYLRODWLRQRIDQ\
H[SRUWODZVRUUHJXODWLRQVRIWKH8QLWHG6WDWHVRI$PHULFDRUDQ\RWKHUDSSOLFDEOHMXULVGLFWLRQ7KLV
$JUHHPHQWVKDOOEHJRYHUQHGE\DQGLQWHUSUHWHGXQGHUWKHODZVRIWKH6WDWHRI.DQVDV8QLWHG6WDWHV
RI$PHULFD8VHGXSOLFDWLRQRUGLVFORVXUHE\WKH*RYHUQPHQWRIWKH8QLWHG6WDWHVLVVXEMHFWWR
UHVWULFWLRQVDVVHWIRUWKLQVXESDUDJUDSKFLLRIWKH5LJKWVLQ7HFKQLFDO'DWDDQG&RPSXWHU
62)7:$5(FODXVHRI')$56.DQWURQLFVPD\LQLWVVROHGLVFUHWLRQSURYLGH\RXZLWK
XSJUDGHVRIWKH62)7:$5(DQGRU'RFXPHQWDWLRQLI\RXKDYHSURYLGHG.DQWURQLFV\RXUFRPSOHWHG
:DUUDQW\UHJLVWUDWLRQZLWKDFRS\RI\RXUUHFHLSWVKRZLQJWKHDPRXQW\RXSDLG
/,&(16(($&.12:/('*(6+$9,1*5($'$1'81'(56722'7+,6$*5((0(17
$1'$*5((672%(%281'%<,767(506/,&(16(()857+(5$*5((67+$77+,6
$*5((0(17,67+(&203/(7($1'(;&/86,9(67$7(0(172)7+($*5((0(17
%(7:((1/,&(16(($1'/,&(1625$1'683(56('(6$1<352326$/2535,25
$*5((0(1725$/25:5,77(1$1'$1<27+(5&20081,&$7,2165(/$7,1*72
7+(68%-(&70$77(52)7+,6$*5((0(17
/LPLWHG:DUUDQW\
.$17521,&6&2,1&
(IIHFWLYH1RYHPEHU
7RUHFHLYHQRWLFHRIIXWXUHXSGDWHVRUIUHHFRS\RIWKLVPDQXDOSOHDVHJRWRZZZNDQWURQLFVFRP
127(5HWXUQRIWKH:DUUDQW\5HJLVWUDWLRQFDUGDQGSURRIRISXUFKDVHLVDSUHFRQGLWLRQWRZDUUDQW\
FRYHUDJH
:$55$17<.DQWURQLFV&R,QF.DQWURQLFVZDUUDQWVWRWKHILUVWFRQVXPHUSXUFKDVHU
\RXIRUWKH$SSOLFDEOH:DUUDQW\3HULRGDVGHVFULEHGEHORZWKDWWKH$SSOLFDEOH3URGXFWDV
GHVFULEHGEHORZZLOOEHIUHHIURPGHIHFWVLQPDWHULDODQGZRUNPDQVKLS
5(0('<.DQWURQLFVDJUHHVWKDWIRUDQ\$SSOLFDEOH3URGXFWIRXQGE\.DQWURQLFVWREHLQ
YLRODWLRQRIWKHZDUUDQW\RI6HFWLRQKHUHRIZLWKLQWKH$SSOLFDEOH:DUUDQW\3HULRGLWZLOODWLWV
RSWLRQUHSDLURUUHSODFHWKHGHIHFWLYH$SSOLFDEOH3URGXFWDWQRFKDUJHWR\RXH[FOXGLQJLQERXQG
VKLSSLQJFKDUJHV
(;&/86,9(5(0('<5HSDLURUUHSODFHPHQWRIWKH$SSOLFDEOH3URGXFWDVSURYLGHGKHUHLQLV
WKHVROHUHPHG\DYDLODEOHWR\RXDJDLQVW.DQWURQLFVDQGLQQRHYHQWZLOO.DQWURQLFVEHUHVSRQVLEOH
IRUDQ\RWKHUOLDELOLW\RUGDPDJHVRUIRULQFLGHQWDOVSHFLDORUFRQVHTXHQWLDOGDPDJHVUHJDUGOHVVRI
ZKHWKHUSXUSRUWHGOLDELOLW\LVSUHGLFDWHGXSRQQHJOLJHQFHVWULFWWRUWFRQWUDFWRURWKHUSURGXFWV
OLDELOLW\WKHRU\DQGZKHWKHURUQRW.DQWURQLFVLVZDUQHGDERXWWKHSRVVLELOLW\RIVXFKOLDELOLW\RU
GDPDJHV620(67$7(6'2127$//2:7+((;&/86,2125/,0,7$7,212)
,1&,'(17$/25&216(48(17,$/'$0$*(6627+($%29(/,0,7$7,2125
(;&/86,210$<127$33/<72<28
',6&/$,0(57KLV/LPLWHG:DUUDQW\LVLQOLHXRIDOORWKHUZDUUDQWLHVH[SUHVVHGRULPSOLHGDQGQR
UHSUHVHQWDWLYHRUSHUVRQLVDXWKRUL]HGWRDVVXPHIRU.DQWURQLFVDQ\RWKHUOLDELOLW\LQFRQQHFWLRQZLWK
WKHVDOHRILWVSURGXFWV.$17521,&663(&,),&$//<',6&/$,067+(,03/,('
:$55$17<2)0(5&+$17$%,/,7<$1',03/,(':$55$17<2)),71(66)25$
3$57,&8/$5385326()25$1<$33/,&$%/(352'8&7,)+2:(9(5<28$5($
&21680(5:,7+,17+(0($1,1*2)86&7+($%29(',6&/$,0(52)
,03/,(':$55$17,(6,6())(&7,9(21/<)253(5,2'62876,'(7+($33/,&$%/(
:$55$17<3(5,2'620(67$7(6'2127$//2:/,0,7$7,21621+2:/21*$1
,03/,(':$55$17</$676627+($%29(/,0,7$7,210$<127$33/<72<28
$33/,&$%/(352'8&76$1'3(5,2'6.DQWURQLFVSURGXFWVDUHRIWZRW\SHVKDUGZDUH
XQLWVDQGILUPZDUHDQGVRIWZDUHIRURSHUDWLRQRIWKHVHXQLWVZKHWKHULQFRUSRUDWHGLQWRWKHXQLWV
WKHPVHOYHVRUVHSDUDWHIURPWKHXQLWVDVDGMXQFWVRUDFFHVVRULHVWRWKHXQLWV+DUGZDUHXQLWVDQGWKH
PHGLDFRQWDLQLQJILUPZDUHVRIWZDUHDQGGRFXPHQWDWLRQDUHVROGWRWKHFRQVXPHUSXUFKDVHUDQG
EHFRPHSURSHUW\RIWKHSXUFKDVHU)LUPZDUHDQGVRIWZDUHDUHOLFHQVHGIRUXVHE\WKHFRQVXPHU
SXUFKDVHULQUHWXUQIRUDIHHLQFOXGHGLQWKHSXUFKDVHSULFHRIWKHXQLWVDQGGRQRWEHFRPHWKHSURSHUW\
RIWKHFRQVXPHU6HHVHSDUDWH/LFHQVH$JUHHPHQWSURYLGHGZLWKWKHVHSURGXFWV7KHSURGXFWWR
ZKLFKWKLVZDUUDQW\RI6HFWLRQKHUHRIDSSOLHVKHUHLQ$SSOLFDEOH3URGXFWVDQGWKHSHULRGGXULQJ
ZKLFKWKHZDUUDQW\VKDOODSSO\KHUHLQ$SSOLFDEOH:DUUDQW\3HULRGDUHDVIROORZV
$SSOLFDEOH:DUUDQW\3HULRG2QH\HDUIURPGDWHRISXUFKDVH
(;&/86,2167KLV/LPLWHG:DUUDQW\GRHVQRWDSSO\WRWKHFRVPHWLFDSSHDUDQFHRIWKH
$SSOLFDEOH3URGXFWWREURNHQRUFUDFNHGFDELQHWVWRDQ\DFFHVVRU\QRWVXSSOLHGE\.DQWURQLFVZKLFK
LVXVHGZLWKWKH$SSOLFDEOH3URGXFWWRDQ\SURGXFWWKDWKDVEHHQVXEMHFWWRPLVXVHDEXVHRURYHU
YROWDJHWRDQ\SURGXFWWKDWKDVEHHQPRGLILHGE\QRQ.DQWURQLFVSHUVRQQHOXQOHVVVSHFLILFDOO\
DXWKRUL]HGLQZULWLQJE\.DQWURQLFVRUWRDQ\SURGXFWGDPDJHGRULPSDLUHGE\VKLSSLQJZKHWKHURU
QRWFDXVHGE\SRRUSDFNDJLQJQHJOHFWDFFLGHQWZLULQJQRWLQVWDOOHGE\.DQWURQLFVLPSURSHU
SDUDPHWHUVHWWLQJVZKLFKDUHFOHDUHGE\SHUIRUPLQJDKDUGUHVHWRUXVHLQYLRODWLRQRILQVWUXFWLRQV
IXUQLVKHGE\.DQWURQLFVRURIJHQHUDOO\DFFHSWHGLQGXVWU\SUDFWLFH.DQWURQLFVGRHVQRWZDUUDQWWKDW
WKHIXQFWLRQVFRQWDLQHGLQDQ\VRIWZDUHZLOOPHHW\RXUUHTXLUHPHQWVRUDFKLHYH\RXULQWHQGHGUHVXOWV
RUWKDWRSHUDWLRQRIDQ\VRIWZDUHZLOOEHXQLQWHUUXSWHGRUHUURUIUHHRUZLWKRXWHIIHFWXSRQRWKHU
VRIWZDUHXVHGZLWKLW5HVSRQVLELOLW\IRUWKHVHOHFWLRQRIWKHKDUGZDUHDQGVRIWZDUHSURJUDPWR
DFKLHYH\RXULQWHQGHGUHVXOWVUHVWVZLWK\RX
5(0('<352&('85(6KRXOG\RXQHHGWRPDNHDZDUUDQW\FODLPILUVWFRQWDFWWKHGHDOHUIURP
ZKRP\RXSXUFKDVHGWKHSURGXFW,IWKHGHDOHULVXQDEOHWRDVVLVW\RXFRQWDFW.DQWURQLFV&R,QFE\
PDLODW(DVWUG6WUHHW/DZUHQFH.DQVDV86$E\ID[DWRUE\SKRQHDW
RXU&XVWRPHU6XSSRUWQXPEHU+RXUVSPWRSP&67&RQWDFWXVSULRUWR
UHWXUQLQJDQ$SSOLFDEOH3URGXFWWRUHFHLYHD5HWXUQ$XWKRUL]DWLRQ1XPEHU$VDSUDFWLFDOPDWWHU
SUREOHPVFDQRIWHQEHVROYHGLQVXFKDPDQQHUZLWKRXWWKHSURGXFWKDYLQJWREHUHWXUQHGWR
.DQWURQLFVIRUUHSDLURUUHSODFHPHQW5HWXUQRIDQ\$SSOLFDEOH3URGXFWIRUWKHHQIRUFHPHQWRIULJKWV
XQGHUWKLV/LPLWHG:DUUDQW\VKDOOEHDW\RXUH[SHQVH$Q\SURGXFWUHWXUQHGIRUZDUUDQW\VHUYLFH
ZKLFK.DQWURQLFVGHWHUPLQHVWREHZLWKRXWGHIHFWRUQRWFRYHUHGE\WKLV/LPLWHG:DUUDQW\VKDOOEH
VXEMHFWWRDPLQLPXPODERUFKDUJHDQGWKHSURGXFWZLOOEHUHWXUQHGWR\RXDW\RXUVROHH[SHQVH
3OHDVHQRWHQRZDUUDQW\VHUYLFHZLOOEHSURYLGHGXQWLO.DQWURQLFVKDVEHHQIXUQLVKHGZLWK\RXU
:DUUDQW\5HJLVWUDWLRQFDUGDQGFRS\RISURRIRISXUFKDVHHVWDEOLVKLQJSXUFKDVHGDWH
121$66,*10(177KLV/LPLWHG:DUUDQW\LVQRWDVVLJQDEOHE\\RX$Q\DWWHPSWWRDVVLJQRU
WUDQVIHUDQ\RIWKHULJKWVGXWLHVRUREOLJDWLRQVKHUHRILVYRLG
27+(55,*+767KLV/LPLWHG:DUUDQW\JLYHV\RXVSHFLILFOHJDOULJKWVDQG\RXPD\DOVRKDYH
RWKHUULJKWVZKLFKYDU\IURPMXULVGLFWLRQWRMXULVGLFWLRQ
5HWXUQ5HSDLU3URFHGXUHV
,PSRUWDQW2XUUHSDLUVWDWLVWLFVVKRZWKDWDODUJHSHUFHQWDJHRIXQLWVUHWXUQHGIRUVHUYLFHGRQRWLQ
IDFWUHTXLUHDQ\VHUYLFH7KHUHIRUHZHDGYLVH\RXWRSOHDVHGRXEOHFKHFNWKHIROORZLQJOLVWRI
FRPPRQXVHUVROYDEOHVRXUFHVRIGLIILFXOW\EHIRUHFRQWDFWLQJ.DQWURQLFVDERXWUHWXUQLQJ\RXUXQLW
IRUVHUYLFH$50$5HWXUQ0HUFKDQGLVH$XWKRUL]DWLRQQXPEHUPXVWEHUHTXHVWHGDQGUHFHLYHGDQG
LQFOXGHGZLWKWKHXQLWUHWXUQHGIRUUHSDLU,IDXQLWLVUHFHLYHGZLWKRXWDQ50$QXPEHUWKHVKLSPHQW
ZLOOEHGHQLHG
&KHFN/LVWIRU3RVVLEOH3UREOHPV
,IHQFRXQWHULQJGLIILFXOW\LQJHWWLQJWKLVHTXLSPHQWWRWDONWR\RXUFRPSXWHUSOHDVHSHUIRUPDWOHDVW
WKHIROORZLQJOLPLWHGFKHFNVEHIRUHFDOOLQJRUZULWLQJ
&DUHIXOO\FKHFNWKHZLULQJFRQQHFWLRQVEHWZHHQWKHFRPSXWHUVHULDO56SRUWDQGWKH.$0;/
,IWKHFDEOHVZHUHSXUFKDVHGIURPDWKLUGSDUW\VRXUFHGRXEOHFKHFNWREHVXUHWKDWWKH\FRQIRUPWR
WKHZLULQJLQVWUXFWLRQVLQWKLVPDQXDO
9HULI\WKHVHULDOEDXGUDWHVHWWLQJLQWKHWHUPLQDOSURJUDPV
,WPD\EHXVHIXOWRSHUIRUPD+DUG5HVHW6HH+DUG5HVHWVHFWLRQ
,IVHUYLFHRUUHSDLUVVWLOODSSHDUQHFHVVDU\DIWHUFKHFNLQJWKHLWHPVOLVWHGDERYHLWPD\EHZLVHWRFDOO
ID[HPDLORUZULWH.DQWURQLFVWRGHWHUPLQHLIWKHSUREOHPFDQEHVROYHGZLWKRXWUHWXUQLQJWKHXQLW
7KH.DQWURQLFVZHESDJHDOVRLQFOXGHVD)$4VHFWLRQZLWKDOLVWRIFRPPRQSUREOHPVDQGVROXWLRQV
5HWXUQ3URFHGXUHV
:KHQFDOOLQJWKHVHUYLFHGHSDUWPHQWKDYHWKHIROORZLQJLQIRUPDWLRQDYDLODEOH
7KHXQLWQDPHDQGVHULDOQXPEHUWKHVHULDOQXPEHULVIRXQGRQWKHERWWRPRIWKHXQLW
7KHILUPZDUHYHUVLRQQXPEHUWKHYHUVLRQQXPEHULVGLVSOD\HGLQUHVSRQVHWRWKH9(56,21
FRPPDQG
7KHVWHSVWKDWKDYHEHHQWDNHQWRGHWHUPLQHWKDWWKHSUREOHPLVZLWKWKH.$0;/
$QGLISRVVLEOHKDYHWKH.$0;/ DQGFRPSXWHUDYDLODEOHWRSHUIRUPWURXEOHVKRRWLQJ
RSHUDWLRQV
7KH6HUYLFH'HSDUWPHQWWHOHSKRQHKRXUVDUHSPSP&HQWUDO7LPH0RQGD\WKURXJK
)ULGD\7HOHSKRQHDFFHVVWRWKHVHUYLFHGHSDUWPHQWLVQRWDYDLODEOHRXWVLGHWKHVWDWHGKRXUV
6HUYLFHGHSDUWPHQWFRQWDFWLQIRUPDWLRQ
.DQWURQLFV&R,QF
(UG6WUHHW
/DZUHQFH.6
3KRQHWRSPFHQWUDOWLPH
)D[
HPDLODGGUHVVVHUYLFH#NDQWURQLFVFRP
ZHEVLWHKWWSZZZNDQWURQLFVFRP
:KHQZULWLQJID[LQJRUVHQGLQJHPDLOWR.DQWURQLFVLQFOXGHDFOHDUGHVFULSWLRQRIWKHSUREOHPXQLW
QDPHILUPZDUHYHUVLRQFRPSXWHUW\SHFRPPXQLFDWLRQVRIWZDUHXVHGDQGLISRVVLEOHDOLVWRIFXUUHQW
SDUDPHWHUVHWWLQJVLQWKHXQLWDVVKRZQLQUHVSRQVHWRD',63/$<FRPPDQG
%HVXUHWRLQFOXGHDUHWXUQID[QXPEHUPDLOLQJDGGUHVVDQGRUHPDLODGGUHVV
5HWXUQVGLUHFWWRWKHIDFWRU\IRUUHIXQGRUH[FKDQJHDUHVWULFWO\UHJXODWHG7KHVDOHVGHSDUWPHQWPXVW
DSSURYHDQ\UHWXUQIRUUHIXQGRUH[FKDQJH
,IWKHXQLWZDVUHFHQWO\SXUFKDVHGIURPRQHRIRXUDXWKRUL]HGGHDOHUVFRQWDFWWKDWGHDOHUILUVW
5HSDLU6HUYLFH&KDUJHV
&RQVXOWWKHOLPLWHGZDUUDQW\SROLF\LQWKLVPDQXDOIRUWKHVHUYLFHSURYLVLRQVRIIHUHGE\.DQWURQLFVDW
QRFKDUJH7KLVZDUUDQW\LVFRQVLGHUHGWREHLQIRUFHRQO\ZKHQWKHFXVWRPHUKDVVXEPLWWHGD
FRPSOHWHGZDUUDQW\UHJLVWUDWLRQZLWKLQGD\VRISXUFKDVHDQGZKHQWKHVWLSXODWLRQVRIWKHZDUUDQW\
KDYHEHHQPHW
9LRODWLRQVRIZDUUDQW\FODXVHVZLOODXWRPDWLFDOO\YRLGWKHZDUUDQW\DQGFRVWRIVHUYLFHRUUHSDLUVZLOO
EHFKDUJHGWRWKHRZQHU6HUYLFHRXWVLGHWKHZDUUDQW\SHULRGZLOOEHFKDUJHGDWWKHFRVWRISDUWVODERU
DQGUHWXUQVKLSSLQJDWWKHWLPHRIWKHUHSDLURUVHUYLFH8QLWVVHQWIRUVHUYLFHRUUHSDLUZLWKRXWSULRU
5HWXUQ$XWKRUL]DWLRQZLOOEHVXEMHFWWRWKHPLQLPXPFKDUJHIRUODERUSOXVFRVWRIUHWXUQVKLSSLQJDQG
KDQGOLQJ
5HSDLURU'$0$*(WRDXQLWZKHWKHUDFFLGHQWDORURWKHUZLVHLVQRWFRYHUHGE\DQ\ZDUUDQW\
SURYLGHGE\.DQWURQLFVLQZKLFKFDVHQRUPDOUHSDLUFKDUJHVZLOODSSO\
&RQWDFWWKH6HUYLFH'HSDUWPHQWDW+RXUVSP±SP&67WRREWDLQD5HWXUQ
$XWKRUL]DWLRQQXPEHU5HSDLUHGXQLWVZLOOEHUHWXUQHGYLD836RU)HG(;&2'LIRWKHU
SD\PHQWDUUDQJHPHQWVKDYHQRWDOUHDG\EHHQDUUDQJHG&2'FKDUJHVFDQEHDYRLGHGE\SURYLGLQJ
SD\PHQWLQIRUPDWLRQ9,6$0DVWHU&DUGRU'LVFRYHUHLWKHUDWWKHWLPHRIWKHUHWXUQDXWKRUL]DWLRQ
UHTXHVWRULQFOXGHGZLWKWKHXQLWZKHQLWLVVHQWWREHUHSDLUHG
,QWHUQDWLRQDO5HWXUQV
7KLVVHFWLRQDSSOLHVWRLQWHUQDWLRQDOUHWXUQVRQO\QRWWRGRPHVWLFUHWXUQV
,QFDVHRIXQLWSUREOHPVILUVWFRQWDFWWKHGHDOHUIURPZKRPWKHSURGXFWZDVSXUFKDVHG,ID
.DQWURQLFVSURGXFWPXVWEHUHWXUQHGSOHDVHREVHUYHWKHVWHSVRXWOLQHGEHORZ7KLVZLOOSUHYHQW
XQQHFHVVDU\GLIILFXOWLHVDQGH[SHQVHIRUERWKWKHVKLSSHUDQG.DQWURQLFV
$OOUHWXUQVPXVWEHVKLSSHGWRWKHIDFWRU\DW(DVWUG6WUHHW/DZUHQFH.686$
$OOH[SHQVHVRIUHWXUQLQJLWHPVWR.DQWURQLFVPXVWEHSDLGE\WKHVKLSSHU7KLVLQFOXGHVDQ\
GXW\HQWU\IHHVZKHWKHUWKHUHWXUQLVIRUZDUUDQW\RUQRQZDUUDQW\UHSDLU8VXDOO\WKHEHVWZD\WR
UHWXUQLWHPVWRXVLVE\PDLO+RZHYHULIXVLQJDFRXULHUVHUYLFHVXFKDV'+/836([SHGLWHG
)HGHUDO([SUHVVHWFEHVXUHWRXVH'22572'225VHUYLFH:KHQXVLQJRQHRIWKHVHVHUYLFHVD
FRPPHUFLDOLQYRLFHPD\EHUHTXLUHG3OHDVHFKHFNZLWKWKHFDUULHUEHIRUHVKLSSLQJ
,QFOXGHLQWKHGHVFULSWLRQRIWKHLWHPVRQWKHSDSHUZRUNZKHWKHUSRVWDORUFRXULHUWKHZRUGV86
*22'65(7851(')255(3$,55(3/$&(0(17$QDGGLWLRQDOGHVFULSWLRQRI$PDWHXU
UDGLRSHULSKHUDOHTXLSPHQWRU'DWDFRPPXQLFDWLRQVHTXLSPHQWZRXOGEHKHOSIXO,WZRXOGDOVREH
KHOSIXOEXWQRWUHTXLUHGWRLQFOXGHWKHFRGHQXPEHUZKLFKWHOOV86&XVWRPVDJHQWV
WKDWWKHSDFNDJHFRQWDLQV86JRRGVUHWXUQHGZLWKRXWLPSURYHPHQWHQKDQFHPHQW+RZHYHULIWKH
ZRUGV86JRRGVUHWXUQHGIRUUHSDLUUHSODFHPHQWDUHRQWKHSDSHUZRUNWKHQXPEHULVQRWUHDOO\
QHFHVVDU\
3URYLGHDYDOXHIRUFXVWRPVSXUSRVHV7KLVLVXVXDOO\WKHYDOXHRIWKHLWHPVLQWKHLUFXUUHQW
FRQGLWLRQ$YDOXHLVQRWDFFHSWDEOHIRU86&XVWRPV
,QVLGHWKHSDFNDJHZLWKWKHLWHPVLQFOXGH
$ID[QXPEHUGD\WLPHWHOHSKRQHQXPEHUPDLOLQJDGGUHVVDQGRUHPDLODGGUHVVLIDYDLODEOH
LQFDVHZHQHHGWRFRQWDFW\RX
$FRUUHFWDQGIXOOVKLSSLQJDGGUHVVIRUUHWXUQ
0HWKRGRISD\PHQWWREHXVHGIRUDQ\FKDUJHVLI9,6$0DVWHU&DUGRU'LVFRYHULQFOXGH
H[SLUDWLRQGDWH
$EULHIGHVFULSWLRQRIWKHSUREOHP
$UHIHUHQFHWRDQ\FRQYHUVDWLRQVZLWKWKHWHFKQLFDOVDOHVVWDIIDERXWWKHSUREOHP
5HWXUQ$XWKRUL]DWLRQQXPEHU
)RUZDUUDQW\UHSDLUVZHZLOOSD\WKHVKLSSLQJFKDUJHVWRUHWXUQWKHLWHPVYLDDLUSDUFHOSRVW,I\RX
ZLVKUHWXUQE\FRXULHUVHUYLFHLQFOXGH\RXUDFFRXQWQXPEHU7REHHOLJLEOHIRUUHSDLUXQGHUZDUUDQW\
ZHPXVWKDYHDUHFRUGWKDW\RXVHQW\RXU:DUUDQW\5HJLVWUDWLRQFDUGDQGSURRIRISXUFKDVHWR
.DQWURQLFVDQGWKHLWHPVPXVWVWLOOEHZLWKLQWKHDSSOLFDEOHZDUUDQW\SHULRGDWWKHWLPHWKHUHWXUQLV
DXWKRUL]HG
)RUQRQZDUUDQW\UHSDLUV\RXPXVWSD\WKHUHWXUQVKLSSLQJFKDUJHVLQDGGLWLRQWRDSSOLFDEOHUHSDLU
FKDUJHV
5DGLR)UHTXHQF\,QWHUIHUHQFH6WDWHPHQW
127(7KLVHTXLSPHQWKDVEHHQWHVWHGDQGIRXQGWRFRPSO\ZLWKWKHOLPLWVIRUD&ODVV%GLJLWDO
GHYLFHSXUVXDQWWR3DUWRIWKH)&&5XOHV7KHVHOLPLWVDUHGHVLJQHGWRSURYLGHUHDVRQDEOH
SURWHFWLRQDJDLQVWKDUPIXOLQWHUIHUHQFHLQDUHVLGHQWLDOLQVWDOODWLRQ7KLVHTXLSPHQWJHQHUDWHVXVHVDQG
FDQUDGLDWHUDGLRIUHTXHQF\HQHUJ\DQGLIQRWLQVWDOOHGDQGXVHGLQDFFRUGDQFHZLWKWKHLQVWUXFWLRQV
PD\FDXVHKDUPIXOLQWHUIHUHQFHWRUDGLRFRPPXQLFDWLRQV
+RZHYHUWKHUHLVQRJXDUDQWHHWKDWWKHLQWHUIHUHQFHZLOOQRWRFFXULQDSDUWLFXODULQVWDOODWLRQ,IWKLV
HTXLSPHQWGRHVFDXVHKDUPIXOLQWHUIHUHQFHWRUDGLRRUWHOHYLVLRQUHFHSWLRQZKLFKFDQEHGHWHUPLQHG
E\WXUQLQJWKHHTXLSPHQWRIIDQGRQWKHXVHULVHQFRXUDJHGWRWU\WRFRUUHFWWKHLQWHUIHUHQFHE\RQHRU
PRUHRIWKHIROORZLQJPHDVXUHV
5HRULHQWRUUHORFDWHWKHUHFHLYLQJDQWHQQD
,QFUHDVHWKHVHSDUDWLRQEHWZHHQWKHHTXLSPHQWDQGUHFHLYHU
&RQQHFWWKHHTXLSPHQWLQWRDQRXWOHWRQDFLUFXLWGLIIHUHQWIURPWKDWWRZKLFKWKHUHFHLYHULV
FRQQHFWHG
&RQVXOWWKHGHDOHURUDQH[SHULHQFHG5DGLR79WHFKQLFLDQIRUKHOS
7KHXVHULVFDXWLRQHGWKDWDQ\FKDQJHVRUPRGLILFDWLRQVQRWH[SUHVVO\DSSURYHGE\WKHSDUW\
UHVSRQVLEOHIRUFRPSOLDQFHFRXOGYRLGWKHXVHU
VDXWKRULW\WRRSHUDWHWKHHTXLSPHQW7KHXVHULVDOVR
FDXWLRQHGWKDWDQ\SHULSKHUDOGHYLFHLQVWDOOHGZLWKWKLVHTXLSPHQWPXVWEHFRQQHFWHGZLWKDKLJK
TXDOLW\VKLHOGHGFDEOHWRLQVXUHFRPSOLDQFHZLWK)&&OLPLWV
5),6XSSUHVVLRQ
,QPRYLQJWRWKHZRUOGRIGLJLWDOFRPPXQLFDWLRQVYLDFRPSXWHUVDQHZGLPHQVLRQRI5),PD\EH
HQFRXQWHUHG,QVSLWHRIWKHHTXLSPHQWPDQXIDFWXUHUV
GLOLJHQFHHDFKQHZSLHFHRIHOHFWURQLF
HTXLSPHQWZLOOUHDFWGLIIHUHQWO\LQHDFKVHSDUDWHHQYLURQPHQW(YHU\DPDWHXUVWDWLRQZLOOKDYHLWVRZQ
XQLTXHOD\RXWHTXLSPHQWYDULDWLRQDQGDQWHQQDLQVWDOODWLRQV([SHULHQFHKDVVKRZQWKDWWKHVH
GLIIHUHQFHVDUHUHODWHGWRWKHWRWDO5)HQYLURQPHQWDQGPD\EHFDXVDWLYHIDFWRUVLQ5),LQGXFHG
SUREOHPV7KHVXJJHVWLRQVJLYHQKHUHPD\DVVLVWLQUHVROYLQJ5),SUREOHPV
8VHVKLHOGHGFDEOHIRUDOOFRQQHFWLRQVEHWZHHQHTXLSPHQW
0DNHDOOLQWHUFRQQHFWLQJFDEOHVDVVKRUWDVSUDFWLFDO
$EDODQFHVKRXOGEHPDLQWDLQHGEHWZHHQFDEOHOHQJWKDQGHTXLSPHQWSUR[LPLW\$WWLPHV
VLPSO\URXWLQJLQWHUIDFHFDEOHVDZD\IURPWKHYLGHRPRQLWRURURWKHUGHYLFHVZLOOVROYHD
VFUHHQKDVKRUHOHFWULFDOQRLVHSUREOHP
)HHGOLQHVWRDQWHQQDVVKRXOGEHNHSWDZD\IURPHTXLSPHQWFRQWUROOLQHVDQGRU
LQWHUFRQQHFWLQJFDEOHV,ILWLVQHFHVVDU\IRUVXFKOLQHVWRFURVVHDFKRWKHUWKH\VKRXOGGRVRDW
GHJUHHDQJOHV
*URXQGOHDGVVKRXOGEHDVVKRUWDVSRVVLEOHDQGJRWRDQ($57+*5281'
)&&'HFODUDWLRQRI&RQIRUPLW\
127(7KLVHTXLSPHQW.DQWURQLFV
.$0;/KDVEHHQWHVWHGDQGIRXQGWRFRPSO\ZLWKWKHHVVHQWLDO
HPLVVLRQDQGLPPXQLW\UHTXLUHPHQWVRIWKH(0&'LUHFWLYH)&&7LWOH3DUW6XESDUW%7KHWHVW
UHVXOWVDUHRQILOHDWWKHFRUSRUDWHRIILFHVRI.DQWURQLFV
7\SHRI(TXLSPHQW,QIRUPDWLRQ7HFKQRORJ\(TXLSPHQW
&ODVVRI(TXLSPHQW&ODVV%
,QWURGXFWLRQ
7KH.DQWURQLFV.$0;/ LVDGXDOSRUWPXOWLPRGHFRQWUROOHUIRUZLUHOHVV5)GLJLWDO
FRPPXQLFDWLRQZLWKFRQQHFWRUVIRU*36DQGRWKHUGDWDIXQFWLRQVDWHOHPHWU\FRQQHFWRUIRUUHPRWH
VHQVLQJDQGFRQWURODQGUDGLRSRUWFRQQHFWRUV
7KH.$0;/ DGYDQFHVWKHVWDWHRIWKHDUWEH\RQGWKHSLRQHHULQJ.DQWURQLFV
.$0.$03OXVDQG
.$0 ;/ SURGXFWVLQDQXPEHURIZD\VLQFOXGLQJLQFUHDVHGSURFHVVLQJSRZHUODUJHUDPRXQWRI
5$0PRUHDYDLODEOHRSHUDWLQJPRGHVDQG'63PRGHPV
.$0;/ IHDWXUHVLQFOXGH
&RPPRQO\XVHG+)PRGHVVXFKDV&:577<$6&,,$07253$&725*72536.
EDXGSDFNHWDQGUHFHLYH:()$;
RUEDXGSDFNHWZLWKD9+)RU8+)WUDQVFHLYHU
&DSWXUHDQGEHDFRQRILQIRUPDWLRQIURPD*36UHFHLYHUZHDWKHUVWDWLRQRURWKHUVLPLODUW\SH
GHYLFHVZLWK10($RUFRPSDWLEOHGDWDRXWSXWIRUPDW
$VD',*,3($7(5DSDFNHWUHSHDWHUFDQUHWUDQVPLWSDFNHWVIURPRWKHUVWDWLRQVDQGFDQEH
FRQILJXUHGDVDQDGYDQFHG$356GLJLSHDWHUVWDWLRQ
2SHUDWLRQDVDQHWZRUNQRGHFRPSDWLEOHZLWK1(7520RU7+(1(7XVLQJWKH.DQWURQLFV
.1(7QRGH
*DWKHULQJRIWHOHPHWU\GDWDIURPPXOWLFKDQQHODQDORJLQSXWVDQGEHDFRQLQJSDFNHWV
FRQWDLQLQJWKDWGDWD
3DFNHWFRPPXQLFDWLRQLVGHVFULEHGEULHIO\LQWKLVFKDSWHUDQGFRYHUHGLQGHWDLOLQWKHFKDSWHURQ
SDFNHWPRGHVRIRSHUDWLRQ&RPPDQGVIRUSDFNHWPRGHDUHGRFXPHQWHGLQWKH&RPPDQGVFKDSWHU
*36FRPSDWLELOLW\
$*36RURWKHUGDWDUHSRUWLQJGHYLFHZLWK10($RUFRPSDWLEOHGDWDRXWSXWIRUPDWFDQEH
FRQQHFWHGWRFROOHFWDQGEHDFRQLQIRUPDWLRQUHSRUWVDWVSHFLILFLQWHUYDOVXVLQJWKHSDFNHWPRGH$
VWRUDJHEXIIHUFDQDOVREHFRQILJXUHGWRVWRUHWKHUHSRUWVLQWHUQDOO\DQGEHDFFHVVHGWKURXJKWKH
3%%6
$356GLJLSHDWHU
$3568,GLJLSHDWHUIXQFWLRQVDUHLQFOXGHGZLWKDGYDQFHGIHDWXUHVVXFKDV8,':$,78,)/22'
DQG8,75$&(
/DUJH3%%6
$QH[WHQVLYHVHWRIFRPPDQGVIRUFRQILJXULQJDQGFRQWUROOLQJWKHPDLOER[DUHLQFOXGHG,WVGHIDXOW
VL]HLV.EXWFDQEHVHWWRDQ\VPDOOHUVL]HRUHYHQGLVDEOHGLIPHPRU\LVQHHGHGIRURWKHU
IXQFWLRQVRUVHWWRDODUJHUVL]HLIPHPRU\LVDYDLODEOH,WLQFOXGHVDGYDQFHGIHDWXUHVVXFKDVPHVVDJH
IRUZDUGLQJWRDIXOOVHUYLFH%%6RURWKHUPDLOER[
(PDLO
:LWKVSHFLDOSXUSRVHFRPSXWHUVRIWZDUHFRPPHUFLDORUDPDWHXUHPDLOPHVVDJHVFDQEHUHOD\HGYLD
UDGLRWHOH[$0725RU3$&725WRDQRWKHUVWDWLRQIRUWUDQVIHUWRWKHLQWHUQHW
&RQWURODQG6HQVLQJ
$WHOHPHWU\SRUWLVDYDLODEOHIRUVHQVLQJYROWDJHVWRYROWV5HSRUWVRIVDPSOHVRIWKHVHLQSXWV
DUHDYDLODEOHRQFRPPDQGRUFDQEHWUDQVPLWWHGLQDSDFNHWDWVSHFLILHGLQWHUYDOV
&RQWURORXWSXWVDUHDYDLODEOHDQGDUHVZLWFKHGRQRURIIE\FRPPDQG
5HPRWHDFFHVV
7KH.$0;/ FDQEHDFFHVVHGDQGFRQWUROOHGIURPDUHPRWHORFDWLRQYLDSDFNHWPRGHZLWKSDVVZRUG
FRQWURO0RVWFRPPDQGVDQGSDUDPHWHUVFDQEHVHQWIURPDUHPRWHVWDWLRQFRQQHFWHGLQWKLVZD\
&RQWURORXWSXWVFDQEHVZLWFKHGDQGWHOHPHWU\VHQVLQJRSHUDWLRQVFDQDOVREHGRQHUHPRWHO\
2WKHURSHUDWLRQV
5HFHSWLRQRI+):()$;VLJQDOVZLWKJUD\OHYHOVSRVVLEOH
5HFHSWLRQDQGGLVSOD\RIEDXG(0:,1VLJQDOV
6WDQGDUG7(50,1$/+267DQG.,66DQG1(7520VHULDOSRUWLQWHUIDFHPRGHV
6RIWZDUHFRQWURO
7KH.$0;/ FDQEHFRQWUROOHGZLWKWHUPLQDOFRPPXQLFDWLRQSURJUDPVLQFOXGLQJ.DQWURQLFV
'26
EDVHG3DFWHUPZKLFKLVLQFOXGHGWHUPLQDOSURJUDPVLQFOXGHGZLWK:LQGRZV7(50,1$/
DQG:LQGRZV170(+<3(57(50DQGSURJUDPVIURP UG SDUWLHVZULWWHQVSHFLILFDOO\IRU
.DQWURQLFV71&V
&RQILJXUDWLRQV
7KH.$0;/ LVHDV\DQGIOH[LEOHWRFRQILJXUHWRRSHUDWHLQVHOHFWHGPRGHVZLWKDZLGHUDQJHRI
H[WHUQDOGHYLFHVLQFOXGLQJUHPRWH71&V*36GHYLFHVH[WHUQDOPRGHPVDQGUHPRWHVHQVLQJDQG
FRQWUROGHYLFHV&RQILJXUDWLRQLVGRQHE\FRPPDQGHQWU\IURPDWHUPLQDOSURJUDPH[WHUQDOSRUW
VHOHFWLRQDQGLQWHUQDOMXPSHUVHWWLQJV
7KHLQWHUQDORSHUDWLQJSURJUDPILUPZDUHLQWKH.$0;/ LVVWRUHGLQ)/$6+5208SGDWHRU
8SJUDGHILUPZDUHFDQEHORDGHGIURPDILOHZLWKDVLPSOH$6&,,ILOHWUDQVIHUIURPDWHUPLQDO
SURJUDP
)XOOGHWDLOVRIWKH.$0;/¶VLQWHUQDOMXPSHUVDQGRWKHUWHFKQLFDOVSHFLILFDWLRQVDUHORFDWHGODWHULQ
WKHPDQXDO$GGLWLRQDOGRFXPHQWDWLRQDQGVXSSRUWLQJPDWHULDOLVDYDLODEOHDWWKH.DQWURQLFVZHEVLWH
ZZZNDQWURQLFVFRP
8VHUV*XLGH
,QVWDOODWLRQ
0RGHVRI2SHUDWLRQ
&RPPDQG5HIHUHQFHDQG
+DUGZDUH6SHFLILFDWLRQV
,QVWDOODWLRQ
7KLVFKDSWHUFRYHUVWKHKDUGZDUHVLGHRIVHWWLQJXSDSDFNHWUDGLRVWDWLRQ
7KH.$0;/ LVDPXOWLSRUWGHYLFH5DGLR3RUWLVIRUORZVSHHGSDFNHWDQG+)QRQSDFNHWPRGHV
DQG3RUWLVDSDFNHWSRUWZLWKHDFKSRUWFRQQHFWHGWRGLIIHUHQWWUDQVFHLYHUV8QOHVVRWKHUZLVHQRWHG
WKHVWHSVLQYROYHGIRULQVWDOOLQJWKHWZRUDGLRWRWUDQVFHLYHUFRQQHFWLRQVDUHWKHVDPH
7KHPDMRUVWHSVLQYROYHGLQLQVWDOOLQJLHFRQQHFWLQJWKHSDUWVDSDFNHWUDGLRVWDWLRQDUHDVIROORZV
&RQQHFWWKH.$0;/ WRDSRZHUVRXUFHDQGFRQILUPWKDWWKHXQLWSRZHUVRQZKHQLWVKRXOG
&RQQHFWWKH&RPSXWHUSRUWRIWKH.$0;/ WRDVHULDOSRUWRQDFRPSXWHU
,QVWDOODQGRUFRQILJXUHWHUPLQDOFRPPXQLFDWLRQVRIWZDUHLQWKHFRPSXWHUWRDFFHVVWKHVHULDO
SRUWRQWKHFRPSXWHU
&RQQHFW5DGLRSRUWRQ \RXU.$0;/ WRDWUDQVFHLYHUDQGDGMXVWWKHYROXPHRIWKH
WUDQVFHLYHUVRWKH.$0;/ FDQUHFHLYHWUDQVPLWSDFNHWVLJQDOVIURPWRWKHWUDQVFHLYHU
$IWHUOHDUQLQJKRZWRFRQQHFWUDGLRSRUWWRDWUDQVFHLYHUWKHVDPHVWHSVFDQEHXVHGWRFRQQHFWUDGLR
SRUWWRDQRWKHUWUDQVFHLYHU
3DFNDJH&RQWHQWV
9HULI\WKDWWKHLWHPVOLVWHGEHORZKDYHEHHQLQFOXGHG
7KH.$0;/ XQLW
3DUWVWRXVHLQDVVHPEOLQJFDEOHVPDOH'%FRQQHFWRUVDQGVKHOOVWZRPLQLSOXJFDEOHVIRU
UHFHLYHDXGLRIURPDUDGLRWZRIRRWSLHFHVRIFRQGXFWRUVKLHOGHGFDEOH
PPSRZHUFRQQHFWRU
&'ZKLFKZLOOLQFOXGH
.$0 ;/ 0DQXDO
3$&7(50±'26EDVHG3&WHUPLQDOSURJUDPFRS\ULJKW.DQWURQLFV,QF
.$0 ;/ 6FKHPDWLF
%,26:L]DUGIRU.DQWURQLFV.$0 ;/ IODVKGRZQORDG
'(02YHUVLRQ3DFWHUPIRU:LQGRZV
7RRUGHUIXOORSHUDWLQJFRS\RI3DFWHUPIRU:LQGRZVFRQWDFW&66,QFDW
VDOHV#FVVLQFRUSFRP
1RWH 7KH.DQWURQLFVVXSSOLHG3$&7(50SURJUDPIRU'26LV127WKHVDPHSURJUDPDV
3DF7HUPIRU:LQGRZVV\VWHPVVXSSOLHGE\&66,QF
$GGLWLRQDO3DUWV5HTXLUHGIRUD0XOWL0RGH5DGLR6WDWLRQ
,QDGGLWLRQWRWKH.$0;/ XQLWWKHIROORZLQJSDUWVDUHQHHGHGWRVHWXSDPXOWLPRGHGLJLWDO
FRPPXQLFDWLRQVUDGLRVWDWLRQ
+)DQGRU9+)WUDQVFHLYHUVZLWKPLFURSKRQH0LFDQGH[WHUQDOVSHDNHURUDFFHVVRU\MDFN
FRQQHFWRUV
$FRPSXWHUDQGWHUPLQDOSURJUDPRURWKHU56WHUPLQDOGHYLFH
$Q56VHULDOFDEOHXVHGWRFRQQHFWWKH.$0;/ WRDFRPSXWHU
$9GFSRZHUVXSSO\RUSRZHUDGDSWHU
7KH0DMRU&RPSRQHQWVRIWKH6WDWLRQ
7KH.$0;/
7KH)URQWSDQHORIWKH.$0;/
7KH.$0;/KDVVHYHUDO/('LQGLFDWRUVDQGDSRZHUVZLWFK
$URZRIFORVHO\VSDFHGJUHHQOHGVORFDWHGLQWKHXSSHUOHIWSDUWRIWKHSDQHOLVWKHWXQLQJLQGLFDWRU
³%$5*5$3+´,WZLOOLQGLFDWHZKHQWKHUHFHLYHULVWXQHGSURSHUO\IRUGHFRGLQJDUHFHLYHGVLJQDO
6WDUWLQJDWWKHOHIWWKHORZHUURZRIOHGVIXQFWLRQVDUH
32577UDQVPLW5('32575HFHLYH*5((1/RFN&RQQHFWWULFRORU9DOLG67$
*5((16SHHGWULFRORU0DLO<(//2:32577UDQVPLW5('32575HFHLYH*5((1
&RQQHFW*5((167$*5((132:(5*5((1
7KH3RZHUVZLWFKLVORFDWHGQHDUWKHULJKWHQGRIWKHIURQWSDQHO
7KHUHDUSDQHORIWKH.$0;/
7KH.$0;/UHDUSDQHOKDVVL[FRQQHFWRUVZKLFKDUH
3RZHUMDFNPPIRUH[WHUQDOSRZHUVXSSOLHGIURPD'&SRZHUVRXUFHWRYROWV'&
FHQWHUSRVLWLYH
5DGLR3RUW'%IHPDOHDFFHSWVWKHFDEOHIURPDUDGLRIRUEDXGSDFNHWRSHUDWLRQ
5DGLR3RUW'%IHPDOHDFFHSWVWKHFDEOHIURPDUDGLRIRU+)RUSDFNHWRSHUDWLRQ
7HOHPHWU\'%IHPDOHDQDQDORJLQSXWSRUWIRUFRQQHFWLRQWRH[WHUQDOVHQVLQJGHYLFHVZKLFK
SURYLGHYROWDJHVIURPWRYROWV7ZRFRQWUROOLQHRXWSXWVDUHDOVRDYDLODEOHRQWKLVSRUW
$8;'%PDOHDQ56'7(W\SHSRUWIRU'$7$LQSXWIURPD*36UHFHLYHURUVLPLODU
GHYLFHRUIRU56FRPPXQLFDWLRQWRDQRWKHUGHYLFH
&20387(5'%IHPDOH56'&(IRUFRQQHFWLRQWRDFRPSXWHUVHULDOSRUWIRUFRQWURORI
DQGFRPPXQLFDWLRQZLWKWKH.$0;/
&211(&7,1*7+(.$0;/ 72$32:(56285&(
$VXLWDEOHSRZHUVXSSO\VXFKDVDUHJXODWHG'&SRZHUVXSSO\DQ$&WR'&SRZHUDGDSWHURUD
EDWWHU\VKRXOGSURYLGHWRYROWV'&DWPDRUPRUH
7KHSRZHUMDFNDFFHSWVDFRD[LDOW\SHSOXJZLWKDPPFHQWHU7KHFHQWHURIWKHSOXJLVWKHSRVLWLYH
SRZHUFRQQHFWLRQ
&DXWLRQ
([FHHGLQJWKHPD[LPXPLQSXWYROWDJHRUDSSO\LQJSRZHUZLWKUHYHUVHGSRODULW\FDQFDXVHSUREOHPV
RSHUDWLQJWKH.$0;/ RUPD\FDXVHGDPDJHWRWKHXQLWRUWKHSRZHUVXSSO\:KHQXVLQJDIXVHG
SRZHUOHDGGRQRWXVHDIXVHODUJHUWKDQPD
&211(&7,1*7+(.$0;/ 72$&20387(5
7RRSHUDWHWKH.$0;/WKHIROORZLQJLVUHTXLUHG
$WHUPLQDOGHYLFHRUFRPSXWHUZLWKDQ56RUFRPSDWLEOHVHULDOSRUWWKDWLVDYDLODEOHQRWLQXVH
E\DQ\RWKHUGHYLFHV
$WHUPLQDOFRPPXQLFDWLRQSURJUDPWKDWZLOOORDGDQGUXQLQWKHFRPSXWHUVRSHUDWLQJV\VWHPDQGFDQ
EHFRQILJXUHGWRFRPPXQLFDWHWKURXJKDVHULDOSRUWRQWKDWFRPSXWHU
1RWH ,IXQVXUHDERXWKRZWRGHWHUPLQHZKDWVHULDO&20SRUWVWKHFRPSXWHUKDVRUKRZWRPDNHD
VHULDOSRUWDYDLODEOHFRQVXOWWKHFRPSXWHUGRFXPHQWDWLRQDQGRUFRPSXWHUGHDOHU
7KH.$0;/ GRHVQRWUHTXLUHDQ\VSHFLILFFRPSXWHUSURJUDPDQGPDQ\GLIIHUHQW
FRPPXQLFDWLRQSURJUDPVZLOOZRUN
$VLPSOH'26WHUPLQDOSURJUDPFDOOHG3$&7(50LVDYDLODEOHIURPWKH.DQWURQLFVZHESDJHV,WLV
EHVWXVHGLQ'26RQO\E\H[LWLQJZLQGRZVWR'26DQGFDQEHXVHGZLWKVWDQGDUG&20RU&20
VHULDOSRUWV
8VHUVRIFRPSXWHUVZLWK:LQGRZVRSHUDWLQJV\VWHPVKDYHRWKHUDOWHUQDWLYHVVXFKDV7(50,1$/LQ
:LQGRZV+<3(57(50LQ:LQGRZV0HDQG:LQGRZV17;3V\VWHPV
7KH&RPSXWHU
$Q\FRPSXWHUWKDWKDVDQDYDLODEOHQRWXVHGE\DQ\RWKHUGHYLFH56VHULDOSRUWDQGDWHUPLQDO
SURJUDPWKDWFDQDFFHVVWKDWVHULDOSRUWFDQEHXVHG
7HFKQLFDOQRWHPDNHVXUHWKHVHULDOFDEOHLVZLUHGDVVKRZQLQWKHLQVWDOODWLRQVHFWLRQEHORZ
6WDQGDUGW\SHVHULDOFDEOHVVXFKDVWKRVHXVHGWRFRQQHFWDQH[WHUQDOWHOHSKRQHPRGHPWRWKH
FRPSXWHUVHULDOSRUWDUHFRUUHFWO\ZLUHG,IQHFHVVDU\DFDEOHFDQEHDVVHPEOHGZLUHGDVLQGLFDWHG
XVLQJVKLHOGHGFDEOH
7KH6HULDO3RUWRIWKH&RPSXWHU
2QFXUUHQWPRGHOVRI3&W\SHFRPSXWHUVWKHVHULDOSRUWLVXVXDOO\D0$/('%VW\OHFRQQHFWRUZLWK
RUSLQV$)(0$/(FRQQHFWRULVQHHGHGRQWKHFRPSXWHUHQGRIWKHVHULDOFDEOHWRFRQQHFW
WRWKHFRPSXWHU
VVHULDOSRUW
7RXVHWKH.$0;/ ZLWKDQRQ3&W\SHRIFRPSXWHUXVHDVHULDOFRPPXQLFDWLRQSURJUDPDQGDVHULDO
PRGHPFDEOHQRUPDOO\XVHGWRFRQQHFWD³+$<(6´W\SHKLJKVSHHGWHOHSKRQHPRGHPWRWKDW
FRPSXWHU
,IWKHFRPSXWHUGRHVQRWKDYHDQ56VHULDOSRUWDYDLODEOHRUGRHVQRWKDYHRQHLQVWDOOHG
EXWGRHVKDYH86%SRUWVDGDSWHUGHYLFHVFDQEHIRXQGWKDWZLOODGGDQ56SRUWWKURXJKWKH
86% FRQQHFWLRQ +RZHYHUWKLVUHTXLUHV:LQGRZV265ZLWK86%VXSSRUW:LQGRZV0(
:LQGRZV;3RU0DFLQWRVKV\VWHPV
:KHQUHTXHVWLQJKHOSIURPFRPSXWHUGHDOHUVRURWKHUVZKRPD\QRWEHIDPLOLDUZLWKDSDFNHWUDGLR
PRGHPUHIHUWR\RXU.$0;/ DVDQH[WHUQDOPRGHPGHYLFHQRWDVD71&DOHVVIDPLOLDUWHUP
7KH6HULDO&DEOH
8VHDVWDQGDUG56&VHULDOFDEOHWKHVDPHFDEOHWKDWZRXOGEHXVHGWRFRQQHFWDQH[WHUQDOW\SH
WHOHSKRQHPRGHPWRWKHFRPSXWHUVHULDOSRUWRUPDNHDFDEOHZLWKWKHVDPHZLULQJWRFRQQHFWWKH
.$0;/ WRDVHULDO&20SRUWRQWKHFRPSXWHU
:KHQSXUFKDVLQJDFDEOH\RXVKRXOGVSHFLI\WKDW
7KHVHULDOFDEOH56&VKRXOGEHVKLHOGHGZLWKDWOHDVWZLUHVFRQQHFWHGDQGQRWORQJHUWKDQ
IHHW
7KHPRGHPHQGRIWKHFDEOHVKRXOGKDYHDPDOH'%FRQQHFWRUWRFRQQHFWWRWKH.$0;/DQGWKH
FRPSXWHUHQGRIWKHFDEOHVKRXOGEHDIHPDOH'%RU'%FRQQHFWRUGHSHQGLQJXSRQZKHWKHUWKH
FRPSXWHUVVHULDO&20SRUWKDVDPDOH'%RU'%FRQQHFWRU
SLQWRSLQDGDSWHUVDUHDOVRFRPPRQO\DYDLODEOHLIDFDEOHZLWKWKHSURSHUHQGVLVQRWIRXQG
:KHQPDNLQJDVHULDOFDEOHWKHVHSDUWVDUHQHHGHG
$PDOH'%FRQQHFWRUDVVHPEO\FRQQHFWRUSOXJDQGVKHOO
$OHQJWKRIVKLHOGHGFDEOHOHVVWKDQIHHWFRQWDLQLQJDWOHDVWILYHZLUHV
(LWKHUDIHPDOH'%RU'%FRQQHFWRUDVVHPEO\GHSHQGVRQWKHFRQQHFWRURQ\RXU
FRPSXWHU
VVHULDO&20SRUW
6HULDO&DEOHZLULQJ
,IWKHFRPSXWHUVHULDOSRUWKDVDSLQFRQQHFWRUPDNHWKHVHSLQWRSLQFRQQHFWLRQV
&RPSXWHUHQG0RGHPHQG
)XQFWLRQ
'&'
5;'
!! 7;'
!! '75
'65
!! 576
&76
6*VLJQDOJURXQG
,IWKHFRPSXWHUVHULDOSRUWKDVDSLQFRQQHFWRUPDNHWKHVHSLQWRSLQFRQQHFWLRQV
&RPSXWHUHQG0RGHPHQG
)XQFWLRQ
!! 7;'
5;'
!! 576
&76
'65
6*VLJQDOJURXQG
'&'
!! '75
7;'LVGDWDIURPWKHFRPSXWHUWRWKHPRGHP
5;'LVGDWDIURPWKHPRGHPWRWKHFRPSXWHU
576LVDIORZFRQWUROVLJQDOIURPFRPSXWHUWRPRGHP
&76LVDIORZFRQWUROVLJQDOIURPPRGHPWRFRPSXWHU
'65LVDFRQWUROVLJQDOIURPPRGHPWRFRPSXWHU
'&'LVDFRQWUROVLJQDOIURPPRGHPWRFRPSXWHU
'75LVDFRQWUROVLJQDOIURPFRPSXWHUWRPRGHP
6*LVVLJQDOJURXQG
7KHSXUSRVHVRIWKHSLQVE\QDPH
)*)5$0(*5281'7KLVSLQLVDWWDFKHGWRWKHFKDVVLVRIWKHHTXLSPHQWDVDVDIHW\JURXQG
7;'75$160,7'$7$7KLVOLQHFDUULHVGDWDRXWSXWIURPWKHFRPSXWHUWRWKH.$0;/
5;'5(&(,9('$7$7KLVOLQHFDUULHVGDWDLQSXWWRWKHFRPSXWHUIURPWKH.$0;/
5765(48(67726(1'7KLVKDUGZDUHIORZFRQWUROOLQHLVFRQWUROOHGE\WKHWHUPLQDOSURJUDPLQ
WKHFRPSXWHUDQGLVXVHGWRVLJQDOZKHQLWFDQRUFDQQRWDFFHSWVHULDOGDWDIURPWKH.$0;/
&76&/($5726(1'7KLVKDUGZDUHIORZFRQWUROOLQHLVFRQWUROOHGE\WKH.$0;/WRVLJQDO
ZKHQLWFDQRUFDQQRWDFFHSWVHULDOGDWDIURPWKHFRPSXWHU
'65'$7$6(75($'<7KLVOLQHLVVHWKLJKE\WKH.$0;/ WRLQGLFDWHWKDWLWLVSRZHUHG21
'&''$7$&$55,(5'(7(&77KLVOLQHLVXVHGE\WKH.$0;/ WRVLJQDOWKHVWDWXVRIWKH
FXUUHQW,2VWUHDPWRWKHFRPSXWHU,IDFRQQHFWLRQWRDQRWKHUSDFNHWVWDWLRQH[LVWVRQWKHFXUUHQW,2
VWUHDPWKLVOLQHZLOOEHDFWLYHSRVLWLYHYROWDJH,IWKHFXUUHQW,2VWUHDPLVQRWFRQQHFWHGWRDQRWKHU
VWDWLRQWKHOLQHZLOOEHLQDFWLYHQHJDWLYH
'75'$7$7(50,1$/5($'<$OWKRXJKLQWHUFRQQHFWHGYLDDEXIIHU,&WRWKHSURFHVVRUWKLV
OLQHLVFXUUHQWO\LJQRUHG
6RPHWHUPLQDOSURJUDPVXVHRUFDQEHFRQILJXUHGWRXVHVRIWZDUHIORZFRQWURODQGRQO\WKUHHRIWKH
FRQQHFWLRQVDUHXVHG7;'5;'DQG6*VLJQDOJURXQG+RZHYHUDOOWHUPLQDOSURJUDPVZKHWKHU
XVLQJVRIWZDUHIORZFRQWUROXVLQJ;21DQG;2))RUKDUGZDUHIORZFRQWUROXVLQJ576DQG&76
OLQHVLQWKHFDEOHVKRXOGZRUNZLWKWKHILYHZLUHFRQQHFWLRQLQWKHFDEOHDVGHVFULEHGDERYH
7KHFRPSXWHURUWHUPLQDOLVXVXDOO\UHIHUUHGWRDV'7(GDWDWHUPLQDOHTXLSPHQW$WWKLVHQGRID
VHULDOFDEOH7;'DQG576DUHRXWSXWOLQHVDQG5;'DQG&76DUHLQSXWOLQHV
7KHPRGHPLVUHIHUUHGWRDV'&(GDWDFRPPXQLFDWLRQHTXLSPHQW$WWKLVHQGRIWKHVHULDOFDEOH
7;'DQG576DUHLQSXWOLQHV5;'DQG&76DUHRXWSXWOLQHV
)RUGDWDWRIORZIURPRQHGHYLFHWRDQRWKHU'7(WR'&(RXWSXWOLQHVRIRQHGHYLFHDUHFRQQHFWHG
WRLQSXWOLQHVRQWKHRWKHUDQGYLVHYHUVD
,QVWDOOLQJWKH56&DEOH
:LWKDQDSSURSULDWHVHULDOFDEOHFRQQHFWDVIROORZV
6WHS0DNHVXUHWKDWERWKWKHFRPSXWHUDQG.$0;/ DUHSRZHUHG2))
6WHS3OXJWKHPDOH'%HQGRIWKHVHULDOFDEOHLQWRWKH&RPSXWHUSRUWRIWKH.$0;/
6WHS3OXJWKHIHPDOH'%RU'%FRQQHFWRUHQGRIWKHVHULDOFDEOHLQWRDVHULDOSRUWRQ
WKHFRPSXWHU7KHFRQQHFWRUVFDQWKHQEHORFNHGLQSODFHZLWKWKHLUPRXQWLQJVFUHZV
&DXWLRQ 'RQRWFRQQHFWWKHVHULDOFDEOHIURPWKH.$0;/ WRWKHFRPSXWHUVSDUDOOHOSRUW$SDUDOOHO
SRUWLHSULQWHURU/37SRUWXVXDOO\KDVIHPDOH'%FRQQHFWRUV7KH.$0;/ FDQQRW
FRPPXQLFDWHWKURXJKDSDUDOOHOSRUW
2QFHWKHFDEOHVKDYHEHHQFRQQHFWHGDQGVHFXUHGWKHHTXLSPHQWFDQEHSRZHUHGEDFNRQ
7RYHULI\WKDWWKHVHULDOFDEOHLVFRUUHFWO\ZLUHGDQGFRQQHFWHGXVHDWHUPLQDOSURJUDPRURWKHU
FRPPXQLFDWLRQVRIWZDUHLQWKHFRPSXWHUDQGFRQILJXUHLWWRFRPPXQLFDWHWKURXJKWKHDSSURSULDWH
VHULDOSRUWWRHVWDEOLVKFRPPXQLFDWLRQZLWKWKH.$0;/
7KH7HUPLQDO3URJUDP
7KHVHULDOSRUWFRQILJXUDWLRQLQWKHWHUPLQDOSURJUDPVKRXOGEHVHWIRUGDWDELWVQRSDULW\DQGRQH
VWRSELW7HUPLQDOLQWHUIDFHEDXGUDWHVVXSSRUWHGE\WKH.$0;/ DUH
DQG,QJHQHUDOXVHWKHIDVWHVWEDXGUDWHWKDWWKHWHUPLQDOSURJUDPWKHFRPSXWHU
VHULDOSRUWDQG.$0;/ ZLOOVXSSRUW7KHWHUPLQDOSURJUDPVKRXOGEHVHWIRUIXOOGXSOH[
FRPPXQLFDWLRQ
)RURSHUDWLRQZLWKWHUPLQDOSURJUDPVXVLQJ³KDOIGXSOH[´FRPPXQLFDWLRQVHWWKH71&FRPPDQG
FDOOHG(&+2WR2))
0RVWFXUUHQWPRGHO3&W\SHFRPSXWHUVFRPHZLWKKLJKVSHHGVHULDOSRUWVDOUHDG\LQVWDOOHG,QROGHU
W\SHFRPSXWHUVDVHULDOSRUWFDUGZLWKKLJKVSHHGEXIIHUHG8$576VKRXOGEHLQVWDOOHGWRXVHEDXG
UDWHVDERYHEDXG6HULDOSRUWFDUGVZLWKKLJKVSHHGEXIIHUHG8$576DUHDYDLODEOHWKURXJKPDQ\
SDUWVVXSSOLHUVDQGZLOOLPSURYHWKHUHOLDELOLW\RIKLJKVSHHGFRPPXQLFDWLRQV5HTXHVWDVHULDOSRUW
FDUGZLWKKLJKVSHHGEXIIHUHG8$576LGHQWLILHGDVRUHTXLYDOHQWZKHQRUGHULQJIURPD
VXSSOLHU
&211(&7,1*7+(.$0;/ 7275$16&(,9(56
7RFRPPXQLFDWHZLWKRWKHUVWDWLRQVWKHUDGLRSRUWVRIWKH.$0;/ PXVWEHFRQQHFWHGWRDQ+)RU
9+)UDGLRRUERWKGHSHQGLQJRQWKHW\SHRIFRPPXQLFDWLRQGHVLUHG5DGLR3RUWLVIRU+)SDFNHW
DQGWKHRWKHUQRQSDFNHWPRGHVDQGLVQRUPDOO\FRQQHFWHGWRDQ+)66%WUDQVFHLYHU3RUWRQLVIRU
3DFNHWRQO\PRGHDQGLVQRUPDOO\XVHGZLWKDQ)0WUDQVFHLYHU9+)8+)RU+)PHWHU
.$0;/ 5DGLRSRUWV
3RUW
3RUWZLOOW\SLFDOO\EHFRQQHFWHGWRDQ+)66%&:RU)0WUDQVFHLYHUEXWFRXOGEHXVHGZLWKD
9+))0WUDQVFHLYHU
,QDFDEOHEHWZHHQ3RUWDQGDUDGLRDWOHDVWIRXUSLQVPXVWEHFRQQHFWHGWUDQVPLWDXGLRUHFHLYH
DXGLR377DQGJURXQG
7UDQVPLWDXGLRRXWSXWVKRXOGEHFRQQHFWHGWRWKHPLFURSKRQHLQSXWRUWUDQVPLWGDWDLQSXWRQWKH
PLFURSKRQHMDFNRIWKHUDGLR
5HFHLYHDXGLRLQSXWVKRXOGEHFRQQHFWHGWRWKHH[WHUQDOVSHDNHURXWSXWRUUHFHLYHGDWDRXWSXWIURP
WKHUDGLR
377VKRXOGEHFRQQHFWHGWRWKHWUDQVPLWWHUNH\LQJOLQHRQWKHPLFURSKRQHMDFN
*URXQGVKRXOGEHFRQQHFWHGWRDFKDVVLVJURXQGRIWKHUDGLR
,I&:ZLOOEHWUDQVPLWWHGIURPWKH.$0;/LWV&:NH\RXWSXWOLQHSLQVKRXOGEHFRQQHFWHGWR
WKH&:NH\LQSXWRQWKHUDGLRWKHVDPHFRQQHFWLRQZKHUHDKDQGRSHUDWHGNH\ZRXOGEHFRQQHFWHG
3RUW
3RUWZLOOXVXDOO\EHFRQQHFWHGWRD9+)RU8+))0WUDQVFHLYHU
,QDFDEOHIURP3RUWWRD9+)UDGLRWKHVDPHFRQQHFWLRQVDSSO\DVIURP3RUWWUDQVPLWDXGLR
UHFHLYHDXGLR377DQGJURXQG1RWHWKDW&:RXWSXWLVRQO\DYDLODEOHRQSRUW
'HWDLOHGGHVFULSWLRQVRIWKHUDGLRSRUWVRQWKH.$0;/ DUHORFDWHGLQWKHDSSHQGL[VHFWLRQV
7KH7UDQVFHLYHUV
7KHUHDUHKXQGUHGVRIPRGHOVRI)0WUDQVFHLYHUVZLWKPDQ\GLIIHUHQWZLULQJFRQILJXUDWLRQVDQG
FRQQHFWLRQV5HIHUWRWKHGRFXPHQWDWLRQIRUWKHWUDQVFHLYHUWRGHWHUPLQHKRZLWFDQEHFRQQHFWHGWR
RWKHUGHYLFHVRU71&VVXFKDVWKH.$0;/
6SHFLILFDOO\GHWHUPLQHZKDWW\SHRIPLFURSKRQHFRQQHFWRURUGDWDSOXJWRXVHDQGZKLFKSLQVVKRXOG
EHFRQQHFWHGLQDFDEOHEHWZHHQWKHUDGLRDQGRWKHUGHYLFHV
3DUWVIRUFRQQHFWLQJWKH7UDQVFHLYHU
)RUWKHFRQVWUXFWLRQRIDFDEOHDVVHPEO\IURPWKH.$0;/ WRDUDGLRFDEOHNLWVDUHLQFOXGHG
FRQWDLQLQJDPDOH'%FRQQHFWRUSOXJDQGVKHOODOHQJWKRIVKLHOGHGPXOWLFRQGXFWRUFDEOHDQGDQ
H[WHUQDOVSHDNHUFDEOHZLWKDPLQLSOXJLQVWDOOHG
&RQQHFWRUVIRUWKHUDGLRHQGRIWKHFDEOHDUHQRWLQFOXGHGZLWKWKH.$0;/
7+($8;3257
7KH$8;SRUWLVDQ56VHULDOSRUWIRUFRQQHFWLRQIURPWKH.$0;/WRRWKHUGHYLFHV,WLV
FRQILJXUHGDVD'7(SRUWWKHVDPHDVDFRPSXWHUVVHULDOSRUW
,WFDQEHXVHGIRULQSXWIURPD*36GHYLFHIRULQWHUFRQQHFWLRQWRDQRWKHU71&FRPPXQLFDWLQJLQ
1(7520PRGHLQDQRGHVWDFNRUIRUFRPPXQLFDWLQJZLWKRWKHUGHYLFHVZLWK56VHULDOSRUWV
,IWKHFRPPDQG*363257LVVHWWRDEDXGUDWHJUHDWHUWKDQ]HURWKH$8;SRUWDFWVDVLQSXWIRU
10($W\SHGDWDIURPD*36UHFHLYHURURWKHUGHYLFH
,IWKHFRPPDQG1%$8'LVVHWWRDEDXGUDWHJUHDWHUWKDQ]HURWKH$8;SRUWLVXVHGWRLQWHUFRQQHFW
ZLWKRWKHU71&VLQ1(7520PRGHDWWKHVSHFLILHGEDXGUDWH
&211(&7,1*$*36'(9,&(
7RFDSWXUHGDWDIURPD*36GHYLFHFRQQHFWLWV'$7$RXWSXWWRWKH$8;SRUWRQWKHEDFNRIWKH
.$0;/
,IWKH*36UHFHLYHUKDVDFDEOHWKDWFDQEHFRQQHFWHGWRDFRPSXWHUVHULDOSRUWWRUHSRUWLWVSRVLWLRQ
GDWDWKHVDPHVHULDOFDEOHFDQEHFRQQHFWHGGLUHFWO\WRWKH$8;VHULDOSRUWRIWKH.$0;/ZLWKRXW
FKDQJHV
6LQFHFDEOLQJPD\YDU\IURPRQH*36YHQGRUWRDQRWKHUWKDWFDEOHLVQRWVXSSOLHGZLWKWKH.$0;/
7RPDNHDFDEOHIRUFRQQHFWLQJD*36GHYLFHWRWKH.$0;/DWOHDVWFRQQHFWLRQVDUHUHTXLUHG
*36GDWDRXWSXWDQGVLJQDOJURXQG
&RQQHFW*36GDWDRXWSXWWRSLQRQWKH.$0;/ $8;FRQQHFWRU
&RQQHFW*36GDWDJURXQGWRSLQRQWKH.$0;/ $8;FRQQHFWRU
7KH*36GDWDLQSXWWRWKH$8;SRUWRQWKH.$0;/ LVHQDEOHGZLWKLWV*363257FRPPDQG
,QWHUIDFH&RPPXQLFDWLRQPRGHVRIWKH.$0;/
7HUPLQDO0RGH
7HUPLQDOPRGHLVWKHWH[WEDVHGFRPPDQGLQWHUIDFHWKDWDOORZVRSHUDWLRQRIDQGFRPPXQLFDWLRQZLWK
WKH.$0;/ IURPDWHUPLQDOSURJUDPRU³GXPE´WHUPLQDOXQLW,QWKLVPRGHRQO\RQHFRPPXQLFDWLRQ
PRGHFDQEHXVHGDWDQ\WLPHZKLFKFRXOGEH3DFNHWPRGHRQHLWKHURUERWKUDGLRSRUWVRURQHRIWKH
QRQSDFNHW+)PRGHVLQVWHDG
+RZHYHUZKHQDQRQSDFNHWPRGHLVEHLQJXVHGRQWKH+)SRUWWKH9+)SRUWFDQVWLOOEHDFFHVVHG
E\RWKHUVWDWLRQVWRXVHDQ\RIWKHDFWLYHIXQFWLRQVVXFKDVWKH$356GLJLSHDWHU*36GDWDEHDFRQ
3%%6.$1RGHRU.1HWQRGH
.DQWURQLFV+RVW0RGH
+RVWPRGHSURYLGHVDZD\RIKDYLQJPRUHFRQWURORI.$0;/IURPDSURJUDPWKDWPDNHVRSHUDWLRQ
HDVLHUDQGZLWKPRUHIXQFWLRQDOLW\WKDQZKHQXVLQJDVLPSOHWHUPLQDOSURJUDP7KLVDOORZVVHQGLQJ
FRPPDQGVDQGUHFHLYLQJFRPPDQGUHVSRQVHVFRPPXQLFDWLQJRYHUWKHUDGLRSRUWVLQWZRPRGHVDW
RQFHFRQQHFWHGDQGPRQLWRUHGEDXGSDFNHWVDQGDQRQSDFNHW+)PRGH
&RPPXQLFDWLRQEHWZHHQDSURJUDPDQGWKH.$0;/ LQ+267PRGHXVHVIUDPHVRIGDWD(DFKGDWD
IUDPHKDVDKHDGHUZKLFKLQGLFDWHVWKHIUDPHW\SHFRPPDQGGDWDHWFWKHUDGLRSRUWWKDWGDWDLV
LQWHQGHGIRURUIURPDQGVHQWRUUHFHLYHGGDWD7KH.$0;/ UHWDLQVDOORILWVFRPPDQGVDQG
IXQFWLRQVLQ+RVWPRGH
+RVWPRGHXVHV+DUGZDUHIORZFRQWURORQO\DQGUHTXLUHVWKDWWKHVHULDOFDEOHWKDWFRQQHFWVWKH.$0
;/ WRWKHFRPSXWHULQFOXGHWKH576DQG&76OLQHVDVZHOODV7;'5;'DQGVLJQDOJURXQG
([LWLQJ+RVWPRGH
,ID+RVWPRGHSURJUDPKDVEHHQXVHGWRRSHUDWHWKH.$0;/LWPD\OHDYHWKH.$0LQ+RVWPRGH
ZKHQLWH[LWV,IDVWDQGDUGWHUPLQDOSURJUDPLVWKHQXVHGVHWWRWKHVDPHLQWHUIDFHEDXGUDWHWR
FRPPXQLFDWHZLWKWKH.$0;/LQVWHDGRID³VLJQRQ´PHVVDJHVRPHFKDUDFWHUVDQG6‘‘ZLOOEH
GLVSOD\HG7KLVLVWKH+RVWPRGHFXUUHQWVWDWXVPHVVDJH
7KH+RVWPRGHSURJUDPVKRXOGKDYHDQRSWLRQWRUHWXUQWKH71&WR&200$1'RU7(50,1$/
PRGHZKHQWKDWSURJUDPH[LWV,IWKHSURJUDPLVVHWWRGRWKLVRWKHU³VWDQGDUG´WHUPLQDOSURJUDPV
FDQWKHQEHXVHG
,IWKHWHUPLQDOSURJUDPDOORZVHQWU\RIKLJKQXPEHUHG$6&,,FKDUDFWHUVDVHTXHQFHRIFKDUDFWHUVFDQ
EHVHQWWRH[LW+RVWPRGHVRWKHWHUPLQDOSURJUDPFDQWKHQEHXVHG)LUVWVHQGD)(1'IUDPHHQG
FKDUDFWHU$6&,,FRGHWKHQWKHOHWWHUTXSSHURUORZHUFDVHLVRNDQGILQDOO\DQRWKHU)(1'
FKDUDFWHU$)(1'FKDUDFWHUFDQEHHQWHUHGPDQXDOO\E\SUHVVLQJDQGKROGLQJWKH$/7NH\HQWHULQJ
IURPWKHQXPEHUNH\SDGRQWKHULJKWVLGHRIWKHNH\ERDUGRULQ+\SHUWHUPXQGHU:LQGRZV
KROGLQJWKH$/7NH\DQGHQWHULQJDQGWKHQUHOHDVLQJWKH$/7NH\7KH.$0;/ ZLOOH[LW
+RVW0RGHZLOOUHWXUQWR7(50,1$/LQWHUIDFHPRGHDQGZLOOGLVSOD\WKHXVXDO.DQWURQLFV³VLJQ
RQ´PHVVDJH
.,660RGH
$PDWHXUSDFNHWUDGLRFRPPXQLFDWLRQVFDQXVHWKH7&3,3VXLWHRISURWRFROVLQVWHDGRI$;E\
VZLWFKLQJWR71&WR.,66LQWHUIDFHPRGHDQGUXQQLQJVRIWZDUHWKDWVXSSRUWVWKH.,66FRGHGHVLJQHG
E\3KLO.DUQVHHUHIHUHQFHVDWHQGRIWKLVVHFWLRQ7KH.,66SURWRFROVSHFLILHVWKHFRPPXQLFDWLRQ
EHWZHHQD71&DQGDKRVWHJFRPSXWHU
.,660RGHDOORZVWKH71&WRDFWDVDPRGHPDQGSDFNHWDVVHPEOHUGLVDVVHPEOHU3$',Q.,66
0RGHGDWDSURFHVVLQJLVVKLIWHGIURPWKH71&WRDFRPSXWHUUXQQLQJVSHFLDOVRIWZDUHVXSSRUWLQJWKH
.,66FRGHGHVLJQHGE\3KLO.DUQ9HU\IHZRIWKH.$0;/¶VFRPPDQGVDQGQRQHRILWVRWKHU
IXQFWLRQVDUHDYDLODEOHZKHQLWLVLQ.,66PRGH7KHRSHUDWLQJIXQFWLRQVWKDWDUHDYDLODEOHGHSHQG
VROHO\RQWKHFRPSXWHUSURJUDPXVHG
.,66FRGHVXSSRUWVKLJKHUOHYHOSURWRFROVLH7&3,3IRUVKDULQJFRPSXWHUUHVRXUFHVLQDQHWZRUN
IDVKLRQ([DPSOHVRI7&3,3SURJUDPVDUH1(7126DQG-126$OVRVRPHQHWZRUNLQJVRIWZDUH
*%34UHTXLUHVWKH.,660RGHRIRSHUDWLRQ
7HFKQLFDO1RWH,QWKH.,660RGHWKH71&VLPSO\SDVVHVDOOUHFHLYHGGDWDWRWKHFRPSXWHUDQGWKH
FRPSXWHUSURJUDPLVUHVSRQVLEOHIRUDOOSURFHVVLQJRIWKDWGDWDLQFOXGLQJGHFLVLRQVFRQFHUQLQJ
URXWLQJGLJLSHDWLQJDQGRWKHUFRQWUROGHFLVLRQV
7KH71&FRQYHUWVWKHSDFNHWVRIV\QFKURQRXVGDWDEHLQJUHFHLYHGIURPWKHUDGLROLQNLQWRSDFNHWVRI
DV\QFKURQRXVGDWDWREHSDVVHGWRWKHFRPSXWHURYHUWKHVHULDOSRUWDQGFRQYHUWVWKHSDFNHWVRI
DV\QFKURQRXVGDWDIURPWKHFRPSXWHULQWRWKHV\QFKURQRXVIRUPDWVXLWDEOHIRUUDGLRWUDQVPLVVLRQ7KH
71&UHWDLQVWKHUHVSRQVLELOLW\RIGHWHUPLQLQJSURSHUWLPLQJIRUFKDQQHODFFHVV
7RSODFHWKH.$0;/ LQ.,660RGHDWWKHFRPPDQGSURPSWFPGW\SH,17)$&(.,66DQGSUHVV
UHWXUQ7KHQVHQGD5(6(7FRPPDQGRUF\FOHSRZHURIIRQWRWKH.$0
7KH.$0;/ ZLOOUHPDLQLQ.,66LQWHUIDFHPRGHXQWLOLWUHFHLYHVWKH.,66H[LWFRGHRULWKDVEHHQ
KDUGUHVHW
([LWLQJ.,66PRGH
7KH7&3,3SURJUDPVKRXOGLQFOXGHWKHFRPPDQGWR(;,7.,66PRGHLQWKH71&6HHWKDWSURJUDPV
GRFXPHQWDWLRQIRUWKHSURSHUFRPPDQG
7RHQWHUWKH(;,7.,66FRPPDQGPDQXDOO\IURPDUHJXODUWHUPLQDOSURJUDPVHQGDWKUHHFKDUDFWHU
VHTXHQFHZKLFKLQFOXGHVD)(1'IUDPHHQGFKDUDFWHU$6&,,FRGH))$6&,,FRGHWKHQ
DQRWKHU)(1'FKDUDFWHU$)(1'FKDUDFWHUFDQEHHQWHUHGPDQXDOO\E\SUHVVLQJDQGKROGLQJWKH
$/7NH\HQWHULQJIURPWKHQXPEHUNH\SDGRQWKHULJKWVLGHRIWKHNH\ERDUGDQGWKHQUHOHDVLQJ
WKH$/7NH\7KH$6&,,FRGHFDQEHHQWHUHGE\SUHVVLQJDQGKROGLQJWKH$/7NH\HQWHULQJ
IURPWKHQXPEHUNH\SDGRQWKHULJKWVLGHRIWKHNH\ERDUGDQGWKHQUHOHDVLQJWKH$/7NH\
7KH.$0;/ ZLOOH[LW.,660RGHZLOOUHWXUQWR7(50,1$/LQWHUIDFHPRGHDQGZLOOGLVSOD\WKH
XVXDO.DQWURQLFV³VLJQRQ´PHVVDJH
2WKHUZLVHSHUIRUPD+$5'5(6(7 7KLVZLOOUHVHWDOOFRPPDQGVWRWKHLUIDFWRU\GHIDXOWVHWWLQJV
DQGDOORZWKH.$0;/ WREHUHLQLWLDOL]HGDVDQHZXQLW
5HIHUHQFHVRQ.,660RGH
.DUQ37&3,3$3URSRVDOIRU$PDWHXU3DFNHW5DGLR/HYHOVDQGSS$55/
$PDWHXU5DGLR&RPSXWHU1HWZRUNLQJ&RQIHUHQFHV1HZLQJWRQ&7$55/
&KHSSRQLV0DQG.DUQ37KH.,6671&$6LPSOH+RVWWR71&&RPPXQLFDWLRQV3URWRFROSS
WK&RPSXWHU1HWZRUNLQJ&RQIHUHQFH1HZLQJWRQ&7$55/
;.,66([WHQGHG.,660RGH
7KH.$0;/ DOVRVXSSRUWVWKH*%34PXOWLGURS.,660RGHFDOOHGH[WHQGHG.,66;.,66:LWK
WKLVPRGHWKH71&FDQEHFRQQHFWHGWRD*%34QRGHDORQJZLWKRWKHU71&VRQWKHVDPHVHULDO
SRUWWRSURYLGHPXOWLSOHUDGLRSRUWVWRWKHQRGH2WKHUZLVH;.,66ZRUNVWKHVDPHDV.,66)RU
LQIRUPDWLRQRQWKLVPRGHRIRSHUDWLRQVHHWKHGRFXPHQWDWLRQIRUWKH;.,66VRIWZDUHXVHG
&20081,&$7,2102'(6,17+(.$0;/
3DFNHW0RGH
7KH.$0;/ LVD7HUPLQDO1RGH&RQWUROOHU71&
3DFNHWUDGLRPRGHPVRUSDFNHWPRGHPVDUHJHQHUDOO\UHIHUUHGWRDV71&V7KLVODEHORUPRQLNHU
ZDVDGRSWHGZKHQWKH7XFVRQ$UHD3DFNHW5DGLR*URXS7$35GHYHORSHGWKHLUILUVW71&SDFNHW
UDGLRPRGHPNLWLQWKHHDUO\V7KH71&LVWKHZRUNKRUVHRISDFNHWUDGLR$VDOLVWHQLQJGHYLFHLW
KHDUVDQDXGLRVLJQDOIURPWKHUDGLRFKDQJHVWKHGDWDWRGLJLWDOIRUPGHWHUPLQHVLIWKHGDWDLVDJRRG
SDFNHWDQGVHQGVLWWRZKDWHYHUGHYLFHLVDWWDFKHGXVXDOO\DFRPSXWHU$VDUHOD\GHYLFHLWDOVRFKHFNV
WKHSDFNHWVLWUHFHLYHVDQGGHWHUPLQHVLIWKHSDFNHWVQHHGWREHUHVHQWWKHQGRHVVRLIDSSURSULDWH$VD
VHQGLQJGHYLFHLWUHFHLYHVGLJLWDOGDWDIURPWKHFRPSXWHUSDFNHWL]HVWKHGDWDDQGFRQYHUWVLWLQWR
DXGLRWRQHVZKLFKDUHVHQWRXWWRWKHUDGLR7KHVHWRIUXOHVWKDWDOOSDFNHW71&VIROORZLVFDOOHGWKH
$;SURWRFRO
3URWRFROIRU$PDWHXU3DFNHW5DGLR$;
7KHPRVWFRPPRQO\XVHGSURWRFROLQDPDWHXUSDFNHWUDGLRLV$;7KHGHWDLOVRILWVLQQHUZRUNLQJV
FDQEHIRXQGLQDERRNWLWOHG$;$PDWHXU3DFNHW5DGLR/LQN/D\HU3URWRFROZKLFKLVDYDLODEOH
IURPWKH$55/
&RQQHFWHGYV8QSURWR
7KHUHDUHWZRZD\VWRVHQGGDWDLQSDFNHWUDGLRFRQQHFWHGRUXQSURWRXQFRQQHFWHG
,QWKH&RQQHFWHG0RGHD³FRQQHFWLRQ´LVHVWDEOLVKHGWRDQRWKHUVWDWLRQ3DFNHWVDUHVHQWWRWKDW
VSHFLILFVWDWLRQDQGDFNQRZOHGJPHQWVDUHH[SHFWHGLQUHWXUQWKDWWKHSDFNHWVZHUHUHFHLYHGFRUUHFWO\
,IDQDFNQRZOHGJPHQWLVQRWUHFHLYHGWKH71&ZLOOUHVHQGWKHGDWDGHSHQGLQJRQWKHVHWWLQJRI
$;/9LWPD\VHQGDSROOILUVW7KH5(75<SDUDPHWHUZLOOGHWHUPLQHKRZPDQ\WLPHVWKLVLV
GRQHEHIRUHWKHFRQQHFWLRQLVDERUWHGGXHWREDGFRQGLWLRQV
:KHQDFNQRZOHGJPHQWLVUHFHLYHGWKH71&FDQWKHQVHQGPRUHGDWD7KHUHIRUHWKH&RQQHFWHG
0RGHEDUULQJLPSRVVLEOHFRQGLWLRQVDVVXUHVWKDWWKHRWKHUVWDWLRQZLOOUHFHLYHDOOFKDUDFWHUVFRUUHFWO\
DQGLQWKHSURSHURUGHU
:KHQWKH71&VHQGVDSDFNHWLQWKH8QSURWR0RGHQRDFNQRZOHGJPHQWLVH[SHFWHGRUUHTXLUHGDQG
QRUHWULHVDUHDWWHPSWHG7KLVPRGHLVRIWHQXVHGIRUFDOOLQJ&4IRUWUDQVPLWWLQJEHDFRQVDQGIRU
LQIRUPDOURXQGWDEOHFKDWV
0RQLWRULQJDQG&DOOLQJ&4
:KHQWKH021,725FRPPDQGLV21SDFNHWVKHDUGIURPRWKHUVWDWLRQVFDQEHGLVSOD\HG7KH
GLVSOD\RIPRQLWRUHGSDFNHWVLQFOXGHV³KHDGHU´DQG³GDWD´SDUWV$WWKHEHJLQQLQJRIWKHKHDGHUWZR
FDOOVLJQVDUHGLVSOD\HGVHSDUDWHGE\D!7KHILUVWFDOOVLJQLVWKHVWDWLRQWKDWWUDQVPLWWHGWKHSDFNHW
DQGWKHVHFRQGFDOOVLJQLVWKHGHVWLQDWLRQVWDWLRQWKDWWKHSDFNHWLVLQWHQGHGIRU8QSURWRSDFNHWVPD\
KDYHDQ\GHVWLQDWLRQEXWW\SLFDOO\XVH&4
:KHQWUDQVPLWWLQJ8135272SDFNHWVWKH8135272FRPPDQGVHWVWKHGHVWLQDWLRQRU³WR´DGGUHVV
RIWKRVHSDFNHWV,WVGHIDXOWVHWWLQJLV&4(QWHUWKH&RQYHUV0RGHWRVHQGD&4PHVVDJHE\HQWHULQJ
WKHFRPPDQG&219&5!RU.&5!7KHQW\SHGDQGHQWHUHGFKDUDFWHUVZLOOEHSDFNHWL]HGDQG
WUDQVPLWWHGDVGDWDDQGQRWEHLQWHUSUHWHGDVFRPPDQGV
7RH[LW&RQYHUVPRGHDQGUHWXUQWR&RPPDQG0RGHHQWHUD&WUO&!E\KROGLQJGRZQWKH&RQWURO
NH\DQGSUHVVLQJWKH&NH\
$6LPSOH&RQQHFW
7RFRQQHFWWRDQRWKHUVWDWLRQVWDUWIURPFRPPDQGSURPSWDQGHQWHUDFRQQHFWUHTXHVW)RUH[DPSOH
&211(&7FDOOVLJQ&5!
:KHUH&211(&7LVWKH71&FRPPDQGWRHVWDEOLVKDSDFNHWOLQNZLWKDQGDQRWKHUVWDWLRQDQG
FDOOVLJQLVWKHFDOOVLJQRIWKHRWKHUVWDWLRQ,IWKHFRQQHFWUHTXHVWIDLOVWKH71&ZLOOGLVSOD\WKH
IROORZLQJPHVVDJHV
5(75<&2817(;&(('('
',6&211(&7('
:KHQWKH71&GRHVUHFHLYHDQDFNQRZOHGJPHQWIRUDFRQQHFWUHTXHVWSDFNHWLWZLOOGLVSOD\WKH
PHVVDJH
&211(&7('72FDOOVLJQ
DQGZLOOWKHQFKDQJHWRWKH&RQYHUV0RGHRUWKHFRPPXQLFDWLRQPRGHGHILQHGE\WKHVHWWLQJVRIWKH
1202'(DQG&2102'(FRPPDQGV
7ZRFRPPDQGVGHWHUPLQHZKHQHQWHUHGGDWDZLOOEHSDFNHWL]HGDQGWUDQVPLWWHG7KHFRPPDQG
6(1'3$&GHILQHVWKHNH\RUFKDUDFWHUWKDWFDXVHVDSDFNHWWREHWUDQVPLWWHG,WVGHIDXOWVHWWLQJLVWKH
(17(5RU5(7851NH\:KHQHYHUWKDWNH\LVSUHVVHGDQHZSDFNHWZLOOEHWUDQVPLWWHG
$VHFRQGFRPPDQGFDOOHG3$&/(1GHWHUPLQHVWKHPD[LPXPQXPEHURIFKDUDFWHUVWRLQFOXGHLQD
WUDQVPLWWHGSDFNHW:KHQWKHQXPEHURIW\SHGFKDUDFWHUVLVHTXDOWRWKHQXPEHUGHILQHGE\3$&/(1
DSDFNHWZLOOEHPDGHDQGWUDQVPLWWHGHYHQLIWKH(17(5NH\KDVQRW\HWEHHQSUHVVHG
:KHQWKHFRQYHUVDWLRQZLWKWKHRWKHUVWDWLRQKDVHQGHGWKHSDFNHWOLQNWRWKHVWDWLRQFDQEH
³GLVFRQQHFWHG´7RGLVFRQQHFWUHWXUQWR&RPPDQG0RGHZLWK&WUO&!DQGW\SHD'IRU
'LVFRQQHFW3UHVVWKHUHWXUQRUHQWHUNH\DIWHUDQ\FRPPDQGWRWKH71&$'LVFRQQHFWUHTXHVWSDFNHW
ZLOOEHVHQWWRWKHRWKHUVWDWLRQDQGZKHQDQDFNQRZOHGJHPHQWKDVEHHQUHFHLYHGEDFNWKH71&ZLOO
GLVSOD\WKLVPHVVDJH
',6&211(&7('
DQGZLOOUHWXUQWRFRPPDQGPRGH
(LWKHUVWDWLRQFDQLVVXHWKHGLVFRQQHFWFRPPDQGQRPDWWHUZKLFKVWDWLRQRULJLQDWHGWKHFRQQHFW
:KLOHFRQQHFWHGWRDQRWKHUVWDWLRQWKHGLVSOD\RIPRQLWRUHGSDFNHWVZLOOVWRS7RFRQWLQXHWKHGLVSOD\
RIPRQLWRUHGSDFNHWVZKLOHFRQQHFWHGWRRWKHUVWDWLRQVVHWWKHFRPPDQG0&21WR21
'LJLSHDWLQJ
71&VFDQGLJLWDOO\UHSHDWRU³GLJLSHDW´SDFNHWVWRKHOSRWKHUVWDWLRQVUHDFKDGHVWLQDWLRQVWDWLRQWKDW
WKH\FDQQRWKHDUGLUHFW,Q.DQWURQLFV71&VWKHFRPPDQGWKDWFRQWUROVWKLVIXQFWLRQLVFDOOHG
',*,3($7DQGLWVGHIDXOWVHWWLQJLV21,QPDQ\DUHDVDGHGLFDWHG³',*,´FRQVLVWLQJRIDSURSHUO\
FRQILJXUHG71&DUDGLRDQGDQWHQQDDUHLQVWDOOHGLQDKLJKORFDWLRQWRSURYLGHGLJLSHDWHUFDSDELOLWLHV
IRUPDQ\ORFDOVWDWLRQV
:KHQWKHFRPPDQG0537LVVHWWR21SDFNHWVKHDUGIURPGLJLSHDWHUVWDWLRQVZLOOLQFOXGHFDOOVLJQV
RIWKHVHQGLQJVWDWLRQDQGWKHLQWHQGHGUHFLSLHQWRIWKHSDFNHWDQGWKHFDOOVLJQVRIDQ\GLJLVXVHGWR
UHOD\WKRVHSDFNHWV7KHOLVWRIGLJLVXVHGLVRIWHQFDOOHGWKH³SDWK´
7KHFRPPDQGFDOOHG0<$/,$6GHILQHVDQDOWHUQDWHFDOOVLJQRUDOLDVQDPHRIWKHGLJLSHDWHU,WLV
W\SLFDOO\VHWWRDQDPHWKDWLQGLFDWHVDORFDWLRQRUDUHDRIFRYHUDJHRIWKHGLJLZKLFKLVRIWHQHDVLHUWR
UHPHPEHUWKDQDFDOOVLJQ
$VWDWLRQWKDWQHHGVWRVHQGDSDFNHWWRDQRWKHUVWDWLRQLWFDQQRWKHDUGLUHFWZRXOGDGGUHVVWKDWSDFNHW
³9,$´DGLJLVWDWLRQVFDOOVLJQRUDOLDV8SWRGLJLVFDQEHXVHGWRUHOD\SDFNHWVWRUHDFKDGHVLUHG
VWDWLRQ
7RFRQQHFWWRDQRWKHUVWDWLRQ9,$DGLJLSHDWHUDFRPPDQGZRXOGEHHQWHUHGVXFKDV
&211(&7.&‘.219,$/51&(
RULIVHYHUDOGLJLVDUHUHTXLUHG
&211(&7.&‘.219,$/51&(/91.&,
7RVHQGXQFRQQHFWHGW\SHSDFNHWVOLNH&4PHVVDJHVRU%($&21V9,$DGLJLWKH8135272
FRPPDQGLVXVHGWRVHWWKHSDWK
8135272&49,$/:51&(
:KHQGLJLSHDWLQJDSDFNHWLVWUDQVPLWWHGE\WKHRULJLQDWLQJVWDWLRQLVUHWUDQVPLWWHGE\DOOUHOD\
VWDWLRQVVSHFLILHGWRUHDFKWKHGHVWLQDWLRQVWDWLRQ7KDWVWDWLRQZRXOGWKHQUHVSRQGWKDWLWUHFHLYHGWKH
SDFNHWE\UHWXUQLQJDQDFNQRZOHGJHPHQWSDFNHWE\WKHVDPHSDWKWRWKHRULJLQDOVWDWLRQ7KLVLVRIWHQ
FDOOHGHQGWRHQGDFNQRZOHGJPHQW
$VSHFLDOW\SHRIGLJLSHDWHUIXQFWLRQIRU8,SDFNHWVXVHGE\$356VWDWLRQVLVDOVRDYDLODEOH
FRQILJXUHGE\LWVRZQVHWRIFRPPDQGV,WLVGHVFULEHGLQDQRWKHUVHFWLRQFDOOHG$GYDQFHG
*36$356GLJLSHDWLQJ
*DWHZD\V
$*DWHZD\'LJLLVDGXDOSRUW71&ZKLFKDOORZVSDFNHWVKHDUGRQRQHRILWVUDGLRSRUWVWREH
UHOD\HGRXWIURPLWVRWKHUUDGLRSRUW7KHUDGLRVDWWDFKHGWRWKHSRUWVRIWKH71&DUHXVXDOO\RQ
GLIIHUHQWIUHTXHQFLHVRUEDQGVVXFKDV9+)8+)RU9+)+)
8VLQJDJDWHZD\GLJLLVQHDUO\WKHVDPHDVXVLQJDUHJXODUW\SHGLJL7UDQVPLWWHGSDFNHWV9,$D
*DWHZD\DUHKHDUGRQRQHSRUWRIWKDW71&DQGDUHUHWUDQVPLWWHGRXWIURPWKH71&VRWKHUSRUW
0XOWL&RQQHFWV
7KH.$0 ;/ DOORZVSDFNHW³FRQQHFW´OLQNVRUVWUHDPVWRDVPDQ\DVRWKHUVWDWLRQVRQHDFKRILWV
UDGLRSRUWVDWWKHVDPHWLPH
7KHFRPPDQG0$;86(56GHWHUPLQHVKRZPDQ\VWUHDPVSHUSRUWPD\EHXVHGDWRQHWLPHDQGWKH
FRPPDQG86(56GHWHUPLQHVKRZPDQ\FRQQHFWOLQNVIURPRWKHUVWDWLRQVZLOOEHDFFHSWHG(DFK
LQFRPLQJFRQQHFWLVDVVLJQHGWRWKHQH[WDYDLODEOHVWUHDP,IWKHQXPEHURIVWUHDPVDOORZHGE\
86(56LVIXOODEXV\PHVVDJHZLOOEHUHWXUQHGWRWKHQH[WVWDWLRQDWWHPSWLQJWRFRQQHFWLQVWHDGRID
FRQQHFWDFNQRZOHGJHPHQW
%\VHWWLQJWKH86(56FRPPDQGWRDORZHUQXPEHUWKDQ0$;86(56WKHQXPEHURIVWUHDPV
EHWZHHQWKHPZLOOQRWEHDVVLJQHGWRFRQQHFWUHTXHVWVIURPRWKHUVWDWLRQVDQGDUHUHVHUYHGIRU
RXWJRLQJFRQQHFWV
7RGHWHUPLQHZKLFKSRUWDQGVWUHDPDUHWKHFXUUHQW³,2´WRZKLFKNH\ERDUGLQSXWZLOOEHGLUHFWHG
XVHWKH67$786FRPPDQG7KHUHSRUWLQGLFDWHVZKLFKVWUHDPVDUHFXUUHQWO\DFWLYHDQGWKHFXUUHQW
³,2´VWUHDPDQGEXIIHUVWDWXV
7RFKDQJHVWUHDPVWRPDNHDQRWKHUFRQQHFWRUWRGLUHFWGDWDWRDQRWKHUFRQQHFWHGVWDWLRQRQD
GLIIHUHQWVWUHDPW\SHWKH675($06:FKDUDFWHUWKHQXPEHURIWKHSRUWLIGLIIHUHQWWKDQWKHFXUUHQW
³,2´SRUWDQGWKHOHWWHUGHVLJQDWLRQRIWKHGHVLUHGVWUHDP1RUHWXUQRUHQWHUNH\LVQHFHVVDU\
7KHVHWWLQJRI675($0(9ZLOOWKHQGHWHUPLQHKRZRIWHQWKHVWUHDPGHVLJQDWRULVGLVSOD\HGZLWK
UHFHLYHGGDWD6HWWLQJLWWR21ZLOOPDNHWKHVWUHDPGHVLJQDWRUVVKRZRQHYHU\FRQQHFWHGSDFNHW
UHFHLYHG6HWWLQJ675($0&$DOVRWR21ZLOODGGWKHFDOOVLJQRIWKHIURPVWDWLRQEHVLGHWKH
VWUHDPGHVLJQDWRU
5RXQG7DEOH'LVFXVVLRQV
6HYHUDOVWDWLRQVWDONLQJWRJHWKHUSUHVHQWVDGLIILFXOWVLWXDWLRQIRUSDFNHWUDGLRVLQFHWKHSURWRFRO
UHTXLUHVWZRVWDWLRQVWRFRQQHFWWRHDFKRWKHULQRUGHUWRPDNHVXUHWKH\UHFHLYHHDFKRWKHUVSDFNHWV
7REHDEVROXWHO\VXUHWKDWHDFKVWDWLRQUHFHLYHVDOOWUDQVPLWWHGGDWDDFRQQHFWOLQNZRXOGKDYHWREH
HVWDEOLVKHGWRHDFKVWDWLRQDQGWKDWGDWDVHQWWRHDFKVWDWLRQLQWXUQ
6HOHFWLYH0RQLWRULQJ
:LWK021,72521WKH%8'/,67FRPPDQGFDQEHXVHGWROLPLWWKHGLVSOD\RIPRQLWRUHGSDFNHWV
IURPRWKHUVWDWLRQVWRRQO\WKRVHSDFNHWV)520RU72RUERWKDVSHFLILFVWDWLRQRUDQ\RIWR
FDOOVLJQVOLVWHG
7LPLQJ
'ZDLWYV3HUVLVWHQFHDQG6ORWWLPH
:KHQWKH71&DFWVDVDGLJLSHDWHUUHFHLYHGSDFNHWVWKDWQHHGWREHUHOD\HGDUHUHWUDQVPLWWHGDVVRRQ
DVWKHIUHTXHQF\LVFOHDU2WKHU71&VRQIUHTXHQF\VKRXOGKROGRIIRUZDLWWKHLUWXUQXVLQJD
3(56,67(1&(6/277,0(DOJRULWKPRU':$,7PHWKRGWRGHWHUPLQHZKHQWRWUDQVPLW7KLV
SUDFWLFHKDVEHHQDGRSWHGWRUHGXFHFROOLVLRQVZLWKSDFNHWVEHLQJGLJLSHDWHGVLQFHWKHVHSDFNHWVPXVW
E\WKH$;SURWRFROEHDFNQRZOHGJHGHQGWRHQG7KHXVHRIWKH3(56,676/277,0(DOJRULWKP
WRJDLQFKDQQHODFFHVVLVVWDQGDUGLQ.DQWURQLFV¶71&V7KHGHIDXOWYDOXHIRU':$,7LVVHWWR]HUR,I
WKH':$,7PHWKRGLVXVHGWKH71&VHQGLQJQRQGLJLSHDWSDFNHWVZLOOZDLWIRU':$,7WLPHV
PLOOLVHFRQGVWLPHRIFOHDUFKDQQHOEHIRUHEHJLQQLQJWRNH\XSWKHUDGLRWRWUDQVPLW
7KHDOJRULWKPXVHGZLWKWKHVHWWLQJVRIWKH3(56,67DQG6/277,0(SDUDPHWHUVKHOSVDYRLGSDFNHW
FROOLVLRQVE\UDQGRPL]LQJWKHZDLWWLPHEHIRUHWUDQVPLWWLQJ%\XVLQJWKLVUDQGRPWLPLQJLWLVOHVV
OLNHO\WKDWDQ\WZR71&VZLOOWUDQVPLWDWWKHVDPHWLPHDQGFDXVLQJDSDFNHWFROOLVLRQ:KHQD71&
KDVDSDFNHWWRWUDQVPLWDQGGHWHFWVWKDWWKHFKDQQHOLVFOHDULWZLOOZDLW6/277,0(WLPHV
PLOOLVHFRQGVDQGJHQHUDWHDUDQGRPQXPEHU,IUHVXOWLQJQXPEHULVVPDOOHUWKDQWKHQXPEHU
VSHFLILHGE\WKHVHWWLQJRI3(56,67WKH71&ZLOOWUDQVPLW,IWKHQXPEHULVODUJHULWZLOOZDLW
DQRWKHU6/277,0(DQGWKHQJHQHUDWHDQRWKHUUDQGRPQXPEHUDQGDJDLQGHFLGHZKHWKHUWRWUDQVPLW
RUQRW
:KHQXVLQJ3(56,676/277,0(':$,7VKRXOGEHVHWWRVLQFHERWKZLOOEHXVHGLIVSHFLILHG
$VDQH[DPSOHDVVXPHWKDW3(56,67LVVHWWRDQG6/277,0(LVVHWWR7KLVYDOXHRI
6/277,0(UHVXOWVLQDUDQGRPQXPEHUEHLQJJHQHUDWHGHYHU\PLOOLVHFRQGV:KHQWKH71&VHHV
WKDWWKHFKDQQHOLVFOHDULWZDLWVPVWKHQJHQHUDWHVDUDQGRPQXPEHUEHWZHHQDQG
LQFOXVLYH,ILQWKLVH[DPSOHWKHQXPEHUZDVWKHQWKH71&ZRXOGQRWVWDUWWKHNH\XSRIWKH
WUDQVPLWWHUVLQFHLVJUHDWHUWKDQWKH3(56,67YDOXH,QVWHDGLWZRXOGZDLWDQDGGLWLRQDOPV
DQGLIWKHFKDQQHOLVVWLOOFOHDUJHQHUDWHDQHZUDQGRPQXPEHU7KLVWLPHOHW
VVD\LWFRPHVXSZLWK
WKHQXPEHU6LQFHWKLVLVOHVVWKDQWKH3(56,67YDOXHWKHNH\XSRIWKHWUDQVPLWWHUWRVHQGWKH
SDFNHWZLOOEHJLQ
7;'(/$<
7;'(/$<VKRXOGEHDGMXVWHGWRDOORZVXIILFLHQWWLPHIRUWKHUDGLRWRVZLWFKIURPUHFHLYHWRWUDQVPLW
DQGGHYHORSIXOOSRZHURXWSXW,IWKH71&VWDUWVVHQGLQJSDFNHWGDWDEHIRUHWKHWUDQVPLWWHUKDV
UHDFKHGIXOOSRZHUWKHEHJLQQLQJRIWKHSDFNHWZRQ
WEHKHDUGE\RWKHUVWDWLRQVDQGWKHSDFNHWZLOOEH
ORVW7;'(/$<DOVRDOORZVVXIILFLHQWWLPHIRURWKHUVWDWLRQVUHFHLYHUDQG71&WREHFRPHDFWLYHDQG
GHWHFWDUHFHLYHGSDFNHWVLJQDO
7KH71&VHQGVRQO\IODJVGXULQJWKH7;'(/$<SHULRG)ODJVDUHQRWSDUWRIDSDFNHWRUGDWDWREH
GHFRGHG:KHQ7;'(/$<LVVHWH[WUDORQJWKHIODJVSUHFHGLQJDSDFNHWFDQEHKHDUG
)5$&.)UDPH$FNQRZOHGJPHQW7LPH
,IWKH71&H[SHFWVDQDFNQRZOHGJPHQWRIDSDFNHWLWKDVVHQWLWZLOOZDLW)5$&.VHFRQGVIRUWKH
DFNQRZOHGJPHQW,IWKHDFNQRZOHGJPHQWLVQRWUHFHLYHGLWZLOOHLWKHUVHQGDSROORUUHWUDQVPLWWKH
SDFNHWGHSHQGLQJRQWKHVHWWLQJRI$;/9:KHQGLJLVDUHXVHGH[WUDWLPHLVDOORZHGIRUHDFK
WUDQVPLVVLRQXVLQJWKHIROORZLQJHTXDWLRQ
)5$&.QVHFRQGV
ZKHUHQLVWKHQXPEHURIGLJLSHDWHUV7KHORZHUWKHEDXGUDWH+%$8'WKHKLJKHUWKLVSDUDPHWHU
VKRXOGEHVHWEHFDXVHHYHU\WKLQJLVVORZHU7KHOHQJWKRIWKHWUDQVPLVVLRQGHWHUPLQHGE\3$&/(1
DQG0$;)5$0(DOVRQHHGVWREHWDNHQLQWRDFFRXQWZKHQGHFLGLQJKRZWRVHW)5$&./RQJHU
SDFNHWVDQGPRUHRIWKHPUHTXLUHPRUHWLPHWREHWUDQVPLWWHGPRUHWLPHWREHUHSHDWHGE\WKH
GLJLSHDWHUDQGVRRQGRZQWKHOLQH7KH)5$&.WLPHUEHJLQVZKHQ377LVUHOHDVHGWKHSDFNHWKDV
EHHQVHQWDQGLVVXVSHQGHGZKHQGDWDFDUULHUIURPWKHUDGLRLVSUHVHQWRUZKHQ\RXUVWDWLRQLV
WUDQVPLWWLQJ
5HWULHVLQ$;/HYHO9HUVLRQYV9HUVLRQ
7KHZD\UHWULHVDUHDFFRPSOLVKHGGHSHQGVRQ$;/9EHLQJ2))RU21,IDSDFNHWLVWUDQVPLWWHG
WRDFRQQHFWHGVWDWLRQDQGDQDFNQRZOHGJHPHQWLVQRWUHFHLYHGEDFNWKHHQWLUHSDFNHWLVUHWUDQVPLWWHG
ZLWKWKHVDPHIUDPHQXPEHUXSWRWKHQXPEHURIWULHVVSHFLILHGE\WKH5(75,(6FRPPDQGXQWLODQ
DFNQRZOHGJHPHQWLVUHFHLYHG,IDFNQRZOHGJHPHQWLVVWLOOQRWUHFHLYHGDGLVFRQQHFWVHTXHQFHLV
VWDUWHGXSWRWKHQXPEHURI5(75,(6DJDLQ,IWKHUHLVVWLOOQRUHVSRQVHIURPWKHRWKHUVWDWLRQWKHXQ
DFNQRZOHGJHGSDFNHWLVGLVFDUGHG,QOHYHOW\SHUHVSRQVHVVLQJOHSDLUVRIDQJOHEUDFNHWVDUHXVHG
VXFKDVUU!
8QGHUYHUVLRQ$;/921ZKHQDQDFNQRZOHGJHPHQWKDVQRWEHHQUHWXUQHGD32//RQO\LV
VHQWQRWWKHHQWLUHSDFNHWXSWRWKHQXPEHURIWLPHVVSHFLILHGE\5(75,(6,QOHYHOW\SH
UHVSRQVHVWZRSDLUVRIDQJOHEUDFNHWVDUHXVHVXFKDVUU!!
&RQYHUV0RGHYV7UDQVSDUHQW0RGH
,QWKH&RQYHUV0RGHVSHFLDOFKDUDFWHUVDUHUHFRJQL]HGE\WKH71&7KH\DUHXVHGWRHGLWW\SHGGDWD
EHIRUHWUDQVPLWWLQJLWWRSDVVWKURXJKVSHFLDOFKDUDFWHUVDVGDWDWRDQRWKHUVWDWLRQRUWRFDXVHDSDFNHW
WREHWUDQVPLWWHG
7UDQVSDUHQW0RGHZDVGHVLJQHGIRUVHQGLQJILOHVZKHWKHU$6&,,GDWDILOHVRUSURJUDPILOHV6SHFLDO
FKDUDFWHUVRWKHUWKDQ75)/2:DQG7;)/2:ZKHQ21KDYHQRPHDQLQJWRWKH71&LQWUDQVSDUHQW
PRGHWKH\DUHMXVWFKDUDFWHUVWREHSXWLQDSDFNHWDQGVHQWWRWKHUDGLR
,Q7UDQVSDUHQW0RGHWKH3$&7,0(FRPPDQGGHILQHVZKHQSDFNHWVDUHWUDQVPLWWHG7KHUHLVQR
021,725IXQFWLRQZKLOHLQ75$163$5(17PRGH2QO\GDWDIURPDFRQQHFWHGVWDWLRQFDQEH
UHFHLYHG
([LWLQJ7UDQVSDUHQW0RGH
6LQFH7UDQVSDUHQW0RGHDOORZVWKHVHQGLQJRIDOOFKDUDFWHUVRQO\DVSHFLDOVHTXHQFHRIFKDUDFWHUVRU
DPRGHPEUHDNZLOOH[LW7UDQVSDUHQW0RGH7KHFRPPDQGFDOOHG&0'7,0(VHWVDWLPLQJRI
FKDUDFWHUHQWU\WKDWZLOODOORZVWKHXVHRIWKH&200$1'FKDUDFWHULQWKHVSHFLDOFKDUDFWHU
VHTXHQFH7KUHH&200$1'&WUO&!FKDUDFWHUVPXVWEHHQWHUHGZLWKLQ&0'7,0(RIHDFK
RWKHUZLWKDWOHDVWRQH&0'7,0(EHIRUHDQGDIWHUWKHVSHFLDOVHTXHQFH
6RPHWHUPLQDOSURJUDPVFDQVHQGD02'(0%5($.VLJQDOZKLFKWRJJOHVWKH7;'OLQHIRUD
VSHFLILFSHULRGRIWLPHWKDWLVORQJHUWKDQDVWDQGDUGFKDUDFWHUELWWLPH7KLVZLOODOVRFDXVHWKH71&
WRH[LW75$163$5(17PRGHDVORQJDVLWVFRPPDQG%5($.KDVQRWEHHQVHWWR2))
)ORZ&RQWURO
%RWKWKHFRPSXWHUDQGWKH71&KDYHIL[HGDPRXQWVRILQSXWDQGRXWSXWEXIIHUVSDFH)ORZFRQWURO
SUHYHQWVWKHORVVRIGDWDLQFRPPXQLFDWLRQEHWZHHQWKHFRPSXWHUDQGD71&,IRQHRIWKHGHYLFHVKDV
DQHDUO\IXOOLQSXWEXIIHULWFDQVLJQDOWKHRWKHUGHYLFHWRVWRSVHQGLQJGDWDXQWLOLWKDVEHHQDEOHWR
SURFHVVWKHGDWDLWKDVDOUHDG\UHFHLYHG
6RIWZDUH)ORZ&RQWURO
6RIWZDUHIORZFRQWUROXVHVVSHFLDOFKDUDFWHUVDVGHILQHGE\WKHFRPPDQGV;2));216723DQG
67$57ZKLFKDUHLQVHUWHGLQWRGDWDRQWKH7;'DQG5;'OLQHVEHWZHHQWKHFRPSXWHUDQG71&2QH
RIWKHGHYLFHVZLOOVHQGD&WUO6!WRVLJQDOWKHRWKHUGHYLFHWRVWRSVHQGLQJGDWDDQGD&WUO4!WR
VLJQDOWKDWLWFDQUHVXPHVHQGLQJGDWD6RIWZDUHIORZFRQWUROFDQEHGLVDEOHGE\VHWWLQJWKHFRPPDQG
;)/2:WR2))7KHFRPPDQGV75)/2:DQG7;)/2:DUHXVHGWRHQDEOHVRIWZDUHIORZFRQWUROLQ
75$163$5(17PRGH
+DUGZDUH)ORZ&RQWURO
+DUGZDUHIORZFRQWUROXVHVWKH576DQG&76OLQHVLQWKH56FDEOH7KH71&ZLOOGHDFWLYDWHWKH
&76OLQHWRWKHFRPSXWHUWRVLJQDOLWWRVWRSVHQGLQJGDWD7KHFRPSXWHUZLOOGHDFWLYDWHWKH576OLQH
WRVLJQDOWKH71&WRVWRSVHQGLQJGDWD
5HPRWH$FFHVV
7KHFRPPDQGVRIWKH.$0;/ FDQEHDFFHVVHGUHPRWHO\IURPDQRWKHU71&DVORQJDVLWVFRPPDQGV
0<5(027(DQG57(;7KDYHEHHQVHW0<5(027(GHILQHVWKHFDOOVLJQRUQDPHIRUWKHUHPRWH
DFFHVVIHDWXUHDQG57(;7LVDSDVVZRUGFKDUDFWHUVWULQJ
,QDORFDO71&FRPPDQGLWWRFRQQHFWWRWKH0<5(027(FDOOVLJQLQWKHUHPRWH.$0;/,WZLOO
UHVSRQGWRWKHFRQQHFWUHTXHVWZLWKWKUHHOLQHVRIVL[QXPEHUVSHUOLQH3LFNRQHRIWKHOLQHVDQGHQWHU
WKHFKDUDFWHUVDWWKHSRVLWLRQVLQGLFDWHGLQWKHOLQHDVHQWHUHGLQ57(;7
$VDVLPSOHH[DPSOHHQWHUWKHFRPPDQG57(;7D%F'6LQFHWKHUHDUHRQO\FKDUDFWHUVLQWKHOLQH
WKHQXPEHUVUHWXUQHGLQWKHWKUHHOLQHVRIVL[QXPEHUVLQUHVSRQVHWRDFRQQHFWUHTXHVWWRWKH
0<5(027(ZLOORQO\EHWRVXFKDV
6HOHFWLQJWKHILUVWOLQHWKHUHWXUQHQWU\ZRXOGEH
DDF%'%
8SSHUDQGORZHUFDVHFKDUDFWHUVPXVWEHHQWHUHGH[DFWO\WKHVDPHDVWKH\ZHUHLQ57(;7QXPEHUV
DQGVSDFHVDOVRFRXQWDVDFKDUDFWHU
:KHQUHPRWHFRPPDQGDFFHVVKDVEHHQJUDQWHGDSURPSWLQVWHDGRIFPGZLOOEHUHWXUQHGDQG
FRPPDQGVWRWKHUHPRWH71&FDQWKHQEHVHQW$Q\FRPPDQGWKDWFDXVHVDUHVHWWRRFFXUZLOOORVH
WKHFRQQHFWLRQLQWKHUHPRWH71&WKHVDPHDVZKHQF\FOLQJLWVSRZHURIIDQGEDFNRQOHDYLQJWKH
ORFDO71&VWLOOWKLQNLQJLWLVFRQQHFWHGWRWKDWUHPRWHVWDWLRQ
3URSHUFDUHVKRXOGEHXVHGZKHQFKDQJLQJFRPPDQGVUHPRWHO\DVVRPHFRPPDQGVFDQFDXVHWKDW
UHPRWH71&RUDQ\71&IRUWKDWPDWWHUWRVWRSFRPPXQLFDWLQJFRPSOHWHO\
,IWKUHHSDVVZRUGDWWHPSWVDUHPDGHDQGIDLOHGZKHQOLQNHGWRWKH0<5(027(FDOOVLJQLWZLOO
GLVFRQQHFWDQGZLOOQRWUHVSRQGWRFRQQHFWUHTXHVWVIRUPLQXWHV
7KHUHLVDOLPLWDWLRQRQWKHDPRXQWRIGDWDWKDWFDQEHUHWXUQHGIURPWKHUHPRWH71&ZKLOHXVLQJLWV
UHPRWHDFFHVV5HVSRQVHVDUHOLPLWHGWRFKDUDFWHUVRUOHVVVRVRPHFRPPDQGVZLOOQRWIXOO\
GLVSOD\WKHLUUHVSRQVH,QUHVSRQVHWRWKHFRPPDQG',63/$<RQO\WKHILUVWFKDUDFWHUVRIWKHIXOO
GLVSOD\OLVWLQJZLOOEHUHWXUQHG%XWWKHVHWWLQJRIDQ\VLQJOHFRPPDQGFDQEHGLVSOD\HGLQLWVHQWLUHW\
:KHQILQLVKLQJDUHPRWHDFFHVVVHVVLRQVHQGWKHFRPPDQGWRWKHUHPRWH71&
',6&0<5(027(
7KHUHPRWH71&ZLOOWKHQVHQGDGLVFRQQHFWSDFNHWEDFNWRWKHORFDO71&7KHORFDO71&FDQDOVREH
FRPPDQGHGWRGLVFRQQHFWIURPWKHUHPRWH71&E\UHWXUQLQJLWWRLWVFRPPDQGSURPSWDQGHQWHULQJ
WKH',6&FRPPDQG
7KHVDPHSDVVZRUGHQWU\VHTXHQFHLVDOVRSUHVHQWHGZKHQFRQQHFWLQJDQGUHTXHVWLQJ6<623DFFHVV
WRWKH3%%6RU.1(7QRGHIURPDQRWKHUVWDWLRQ
2WKHU3DFNHW0RGHVRI2SHUDWLRQ
3%%63HUVRQDO0DLOER[
7KH.$0;/ LQFOXGHVD3HUVRQDO%XOOHWLQ%RDUG6\VWHP3%%6RUPDLOER[ZKLFKLVFDSDEOHRI
VWRULQJPHVVDJHVIRUORFDOGLVSOD\DQGRUIRUZDUGLQJPHVVDJHVWRDQRWKHU3%%6RU%%6IRURWKHU
XVHUV7KLV3%%6SURYLGHVPDQ\RIWKHVDPHPHVVDJHKDQGOLQJIXQFWLRQVDVDFRPSXWHUEDVHGSDFNHW
UDGLRIXOOVHUYLFH%%6LQFOXGLQJWKHIRUZDUGLQJRI%XOOHWLQV3ULYDWHPDLODQG176WUDIILFIRUPRUH
LQIRUPDWLRQRQWKHQDWLRQDOQHWZRUNRIIXOOVHUYLFH3&EDVHGSDFNHW%%6V\VWHPVVHHDFXUUHQW
$55/RSHUDWLRQVPDQXDO
7KHSHUVRQDOPDLOER[LVFRPSDWLEOHZLWKWKHODUJHFRPPXQLW\EXOOHWLQERDUGV\VWHPV5/,0%/HWF
DQGZLOODOORZWKHPWRIRUZDUGPHVVDJHVGLUHFWO\LQWR\RXU71&0HVVDJHVWRRWKHUVWDWLRQVFDQEH
SODFHGPHVVDJHVLQWKHPDLOER[DQGLIWKHORFDO&RPPXQLW\%%6V\VWHPDOORZVZLOOEHSLFNHGXS
UHYHUVHIRUZDUGHGIURPWKHSHUVRQDOPDLOER[LQWRWKH%%6V\VWHPRQUHTXHVW
7KH3%%6FDQDOVREHFRQILJXUHGWRDXWRPDWLFDOO\FRQQHFWWRWKHFRPPXQLW\%%6DJDLQLIWKDW
V\VWHPDOORZVDQGIRUZDUGDQ\PHVVDJHVWRRUWKURXJKWKDWV\VWHP
8VLQJWKH3%%6
,QRUGHUWRXVHDQ\.DQWURQLFV71&3%%6HYHQ\RXURZQILUVWJHWWKHFPGSURPSWDQGWKHQ
FRQQHFWWRWKHFDOOVLJQRIWKH3%%6)RULQVWDQFHLIWKH0<3%%6LVVHWWRXVHWKHFDOOVLJQ1‘.1
FRQQHFWWRLWE\W\SLQJ&211(&71‘.1,QWKLVH[DPSOHWKH3%%6LVLQWKLV71&DQGZLOO
UHVSRQGWRWKHORFDOWHUPLQDOWKHVDPHZD\LWZRXOGUHVSRQGWRDQ\RWKHUVWDWLRQFRQQHFWLQJWRLWRYHU
WKHUDGLR
7KH71&ZLOOGLVSOD\DPHVVDJHLQGLFDWLQJWKDWDFRQQHFWLRQKDVEHHQPDGHWRWKHFDOOVLJQRIWKH
3%%6
&211(&7('WR1‘.1
7KH3%%6ZLOOWKHQGLVSOD\LWV6,'DQGLQLWLDOVLJQRQPHVVDJH7KH6,'LVHQFORVHGLQVTXDUH
EUDFNHWVDQGFRQVLVWVRIWKHXQLWQDPHILUPZDUHYHUVLRQDQGWKHVXSSRUWHGIHDWXUHVLH+07KH
VXSSRUWHGIHDWXUHVLQWKH3%%6RIWKH.$0 ;/ DUH+LHUDUFKLFDOIRUZDUGLQJ0HVVDJH,'DQG%,'
7KHVHLGHQWLILHUVDUHWKH6,'GHILQLWLRQVSXEOLVKHGE\+DQN2UHGVRQ:‘5/,ZLWKKLV&RPPXQLW\
%%6V\VWHP
,ID37(;7KDVEHHQGHILQHGWKH71&ZLOOVHQGLWDVWKHQH[WOLQHDQGWKHQVHQGWKH3%%6FRPPDQG
SURPSW)RUH[DPSOHWKH3%%6LQWKH.$0 ;/ ZLOOUHVSRQGZLWKWKHIROORZLQJ
>.$0;/+0@
%<7(6$9$,/$%/(
37(;7ZRXOGEHKHUHLILWKDVEHHQHQWHUHG
(17(5&200$1'%-./56RU+HOS!
&RQQHFWLQJWRDQ\.DQWURQLFV71&EDVHG3%%6ZRXOGUHVXOWLQDVLPLODUSURPSWVHTXHQFH
$WWKLVSRLQWWKH3%%6LVUHDG\WRGLVSOD\PHVVDJHVDFFHSWPHVVDJHVWRRWKHUXVHUVDOORZHGLWLQJRI
PHVVDJHVDOUHDG\HQWHUHGGLVSOD\KHOSLQIRUPDWLRQHWF
(QWHULQJ0HVVDJHV
7RHQWHUDPHVVDJHDGGUHVVHGVSHFLILFDOO\WRDQRWKHUXVHUZKRFDQFRQQHFWWRWKH3%%6DQGUHDGWKH
PHVVDJHODWHUXVHWKH6HQG3ULYDWHFRPPDQG
63.%‘1<.
DQGWKH71&UHVSRQGVZLWK
68%-(&7
HQWHUDVKRUWVXEMHFWOLQH
-XVWDTXLFNTXHVWLRQ«
7KH71&UHVSRQGVZLWK
(17(50(66$*(Q(1':,7+&75/=25(;21$6,1*/(/,1(
ZKHUHQLVWKHQH[WDYDLODEOHPHVVDJHQXPEHULQWKHPDLOER[(QWHUWKHWH[WRIWKHPHVVDJH$WWKH
HQGRIWKHPHVVDJHSUHVVWKHUHWXUQNH\WREHJLQDQHZOLQHDQGW\SHD&WUO=!RU(;WRHQGDQG
VDYHWKHPHVVDJH7KH&WUO=!RU(;PXVWEHRQDOLQHE\LWVHOI:KHQWKHPHVVDJHKDVEHHQHQGHG
SURSHUO\WKH3%%6UHVSRQGVZLWK
0(66$*(6$9('
(17(5&200$1'%-./56RU+HOS!
7KH3%%6LVDJDLQUHDG\WRDFFHSWFRPPDQGV
:KHQWKH3%%6LVFRQQHFWHGWRDQ\VWDWLRQWKH0DLO/('RQWKHIURQWSDQHOZLOOEHOLJKWHG:KHQ
WKH3%%6LVQRWFRQQHFWHGDQGFRQWDLQVXQUHDGPHVVDJHVDGGUHVVHGWRWKH0<&$//0<3%%6RU
DQ\RIWKHFDOOVLJQVRUQDPHVHQWHUHGLQWKH3%/,67FRPPDQGWKH0DLO/('ZLOOEOLQN
7KH3%/,67LVDOVRXVHGZLWKWKH3%3(5621FRPPDQGDQGWKHIROORZLQJ3%%6FRPPDQGV
/0,1(.0,1(DQG50,1(
3%%6&RPPDQGV
7KHFRPPDQGVDYDLODEOHWRXVHUVFRQQHFWHGWRWKH3%%6DUHDVIROORZV
%\H
&DXVHVWKH3%%6WRGLVFRQQHFW
(GLWQ>%37<1)+@>!WRFDOO@>IURPFDOO@>#%%6@ROGQHZ
+HOS
$YDLODEOHRQO\WRWKHV\VWHPRSHUDWRU6<623RUWRDXVHUDWWKHNH\ERDUGRIDFRPSXWHU
FRQQHFWHGGLUHFWO\WRWKH71&LHQRWWRDUHPRWHFRQQHFWLRQH[FHSWIRUWKH6<623)RUDQ
H[SODQDWLRQRIWKLVFRPPDQGVHHWKHVHFWLRQEHORZRQ(GLWLQJ0HVVDJH+HDGHUV
'LVSOD\VD+(/3PHQX
-KHDUG
'LVSOD\VDOLVWRIVWDWLRQVUHFHQWO\KHDUGE\WKLV71&7KHOLVWZLOOLQFOXGHDGDWHDQGWLPH
VWDPSLQGLFDWLQJZKHQHDFKVWDWLRQZDVKHDUG
-KHDUG6KRUW
'LVSOD\VRQO\WKHFDOOVLJQVRIVWDWLRQVKHDUG
-KHDUG/RQJ
'LVSOD\VWKHFDOOVLJQVRIVWDWLRQVKHDUGDQGDQ\GLJLSHDWHUVXVHGDQGWKHGHVWLQDWLRQFDOOVLJQ
/LVW>[>\@@>@
/LVWVDOOPHVVDJHVLQWKHPDLOER[DOORZHGWREHUHDG7KLVZLOOLQFOXGHDOO%8//(7,1DQG
75$)),&PHVVDJHVDQGDQ\35,9$7(PHVVDJHVDGGUHVVHG72WKH71&VFDOOVLJQRU
PHVVDJHVWKDWZHUHVHQWIURPWKLV71&7KH6<623RIWKH3%%6NH\ERDUGRUUHPRWHFDQ
OLVWDQGUHDG$//PHVVDJHV2SWLRQDOO\WKHOLVWFDQEHVWDUWHGIURPDVSHFLILFPHVVDJH
QXPEHUDQGHQGZLWKDWDQRWKHUVSHFLILFPHVVDJHQXPEHULH[ 67$57DQG\ (1'
$OVRLQFOXGLQJWKHRSWLRQDOVHPLFRORQLQDQ\/LVWFRPPDQGZLOODOVRVKRZWKH#%%6DQG
%,'%8//(7,1,'VHHVHFWLRQRQ6HQGLQJ0HVVDJHVRIWKHPHVVDJHVLIDQ\
/LVW_!FDOO>@
/LVWVRQO\WKRVHPHVVDJHVLQWKHPDLOER[ZKLFKDUHDGGUHVVHGWRDVSHFLILFFDOOVLJQ!RU
ZKLFKZHUHVHQWE\DVSHFLILFFDOOVLJQ7ROLVWRQO\WKRVHEXOOHWLQPHVVDJHVDGGUHVVHGWR
$06$7IRULQVWDQFHHQWHUWKHFRPPDQG/!$06$7
/%>@
/LVWVDOO%8//(7,16LQWKHPDLOER[
/&>FDW>@@
7KH/&FRPPDQGE\LWVHOIZLOOFDXVHWKH3%%6WROLVWRQO\WKH72ILHOGRIDOO%8//(7,16
LQWKHPDLOER[,IDFDWHJRU\LVVSHFLILHGLH/&5$&(6WKH3%%6ZLOOOLVWWKHIXOOPHVVDJH
KHDGHUVRIDOO%8//(7,16DGGUHVVHG72WKDWFDWHJRU\
//Q>@
/LVWVWKHPRVWUHFHQWQQXPEHURIPHVVDJHVLQWKHPDLOER[WKDWWKHFXUUHQWXVHULVDOORZHGWR
UHDG
/0LQH>@
/LVWVDOOPHVVDJHVLQWKHPDLOER[ZKLFKDUHDGGUHVVHGWRWKHXVHUFXUUHQWO\FRQQQHFWHG
/2>_@
6HWVWKHRUGHULQZKLFKPHVVDJHVDUHOLVWHG:KHQVHWWRWKHPHVVDJHVDUHOLVWHGLQDVFHQGLQJ
QXPHULFDORUGHUROGHVWWRQHZHVW:KHQVHWWRWKHPHVVDJHVZLOOEHOLVWHGVWDUWLQJZLWK
WKHKLJKHVWPHVVDJHQXPEHUQHZHVWWRROGHVW7KHOLVWLQJRUGHUFDQQRWEHFKDQJHGLIWKH
3%/2FRPPDQGLVVHWWR),;('
/7>@
.LOOQ
/LVWVDOO75$)),&PHVVDJHV
'HOHWHVPHVVDJHQXPEHUQIURPWKHPDLOER[<RXPD\RQO\GHOHWH75$)),&PHVVDJHV
35,9$7(PHVVDJHVDGGUHVVHG72RU)520\RXRU%8//(7,16\RXVHQW7KH6<623PD\
GHOHWHDQ\PHVVDJHLQFOXGLQJ%8//(7,16
.0LQH
'HOHWHVDQ\PHVVDJHVPDUNHGDV5($'DGGUHVVHGWRWKHFXUUHQWXVHU0HVVDJHVPDUNHGDV
1275($'ZLOOQRWEHGHOHWHG
5HDGQ
5HDGVDVSHFLILFPHVVDJHE\QXPEHU2QO\35,9$7(PHVVDJHVDGGUHVVHG72RUVHQWIURPWKH
FXUUHQWXVHUDQGDQ\%8//(7,1RU75$)),&PHVVDJHVPD\EHUHDG35,9$7(PHVVDJHV
DGGUHVVHGWRWKHFXUUHQWXVHUZLOOKDYHWKH67$786IODJVHWWR<ZKHQUHDG
8VLQJ5+LQVWHDGRI5ZLOOLQFOXGHWKHPHVVDJHKHDGHUVDVZHOODVWKHRWKHULQIRUPDWLRQ
SURYLGHGE\WKH5HDGFRPPDQG7KHPHVVDJHKHDGHUFRQWDLQVWKHGDWHWLPHWKHPHVVDJHZDV
UHFHLYHGDWHDFKIRUZDUGLQJ%%6WKDWIRUZDUGHGWKHPHVVDJH
50LQH
'LVSOD\VDOOXQUHDGPHVVDJHVDGGUHVVHGWRWKHFXUUHQWXVHU
6HQGFDOO
6HQGVD35,9$7(PHVVDJHWRWKHFDOOVLJQVSHFLILHG8VLQJ6HQGLVWKHVDPHDVXVLQJWKH63
FRPPDQG
6%FDW
63FDOO
67]LS
7KH6%6HQG%XOOHWLQFRPPDQGLVXVHGWRVHQGD%8//(7,1DGGUHVVHGWRWKHVSHFLILHG
FDWHJRU\
7KH636HQG3ULYDWHFRPPDQGLVXVHGWRVHQGD35,9$7(PHVVDJHWRDVSHFLILHGFDOOVLJQ
8VLQJWKLVFRPPDQGLVWKHVDPHDVXVLQJWKH6HQGFRPPDQG
7KH676HQG7UDIILFFRPPDQGLVXVHGWRVHQG176W\SHWUDIILFPHVVDJHVWRWKH3%%6
6RPHRIWKHVHFRPPDQGVDUHGHVFULEHGLQPRUHGHWDLOEHORZ
6HQGLQJ0HVVDJHV
7KH6(1'FRPPDQGDQGLWVPDQ\IRUPVDOORZVWKHIROORZLQJV\QWD[
6FDOO>#EEFDOO>KDGGU@@>PLG@
63FDOO>#EEFDOO>KDGGU@@>PLG@
67]LS>#ORFDWLRQ>KDGGU@@
6%FDW>#ORFDWLRQ>KDGGU@@>ELG@
:KHUH
FDOO LVWKHFDOOVLJQRIWKHVWDWLRQWKHPHVVDJHLVDGGUHVVHGWR
EEFDOO LVWKHFDOOVLJQRIDIXOOVHUYLFH%%6WRGHOLYHUWKHPHVVDJHWR
KDGGU LVWKHFRPSOHWH+LHUDUFKLFDODGGUHVVGHVLJQDWRUIRUWKH%%6V\VWHPRUGHVWLQDWLRQRIWKH
PHVVDJHVHHWKHVHFWLRQEHORZRQ+LHUDUFKLFDO$GGUHVVHVIRUPRUHGHWDLOHGLQIRUPDWLRQ&RQWDFWD
ORFDOFRPPXQLW\%%66<623IRUFRPSOHWHLQIRUPDWLRQRQORFDO+LHUDUFKLFDODGGUHVVLQJ
ORFDWLRQ LVWKHGHVLJQDWRUXVHGIRUGLVWULEXWLRQRIWKHPHVVDJH)RU75$)),&WKLVVKRXOGEH176[[
ZKHUH[[LVWKHWZROHWWHU3267$/FRGHIRUWKHVWDWH
PLG LVWKH0(66$*(,'DVVLJQHGWRWKHPHVVDJHE\WKHRULJLQDWRU
ELG LVWKH%8//(7,1,'DVVLJQHGWRWKHPHVVDJHE\WKHRULJLQDWRU
]LS LVWKHGLJLWSRVWDO]LSFRGHRUSRVWDOFRGH
FDW LVWKHPHVVDJHFDWHJRU\)RULQVWDQFHDPHVVDJHUHTXHVWLQJKHOSRQDVXEMHFWPD\EHVHQWWRWKH
FDWHJRU\+(/3LQIRVHQWWR,1)2LWHPVIRUVDOHWR6$/(HWF
&RQWDFWDORFDOFRPPXQLW\%%66<623IRUVRPHRWKHUH[DPSOHVDQGVXJJHVWLRQV
:KHQVHQGLQJDPHVVDJHWRWKH3%%6LWPXVWLQFOXGHWKH#%%6EEFDOO>KDGGU@ILHOGLIWKH
PHVVDJHLVWREHIRUZDUGHGIURPWKH3%%6WRDIXOOVHUYLFH%%6V\VWHP$Q\PHVVDJHHQWHUHGLQWR
WKH3%%6RYHUWKHUDGLRZLOOLQLWLDOO\EHPDUNHGZLWKDVWDWXVRI+KHOGDQGZLOOQRWEHDOORZHGWREH
IRUZDUGHGXQWLOWKH6<623KDVHGLWHGWKHPHVVDJHKHDGHUDQGFKDQJHGWKH+IODJ7KLVJLYHVWKH
6<623IXOOFRQWURORYHUWKHUHOD\HGPHVVDJHVIURPWKH3%%60HVVDJHVHQWHUHGIURPWKHORFDO
NH\ERDUGFRQQHFWHGWRWKH71&GRQRWUHTXLUHHGLWLQJLQRUGHUWREHDOORZHGWREHIRUZDUGHGEXW
PXVWLQFOXGHDWOHDVWDQ#%%6ILHOGWRHQDEOHWKHUHYHUVHIRUZDUGLQJ
/LVWLQJ0HVVDJHV
:KHQOLVWLQJPHVVDJHVZLWKDQ\RIWKH/,67FRPPDQGVDGLVSOD\ZLOOEHVLPLODUWRWKHRQHVKRZQ
EHORZ,IWKHRSWLRQDOVHPLFRORQLVVSHFLILHGLQWKHOLVWFRPPDQGWKHGLVSOD\ZLOODOVRLQFOXGHWKH
#%%6ILHOGLILWH[LVWVLQVTXDUHEUDFHVDIWHUHDFKOLQH
06* 67
6,=( 72
)520
%
.(36 :,:,
%
+(/3 :%%%:
7
:‘288
31 1‘$3-:‘6&
%
$// .&‘.21
%<7(6$9$,/$%/(
1(;70(66$*(180%(5
(17(5&200$1'%-./56RU+HOS
'$7(
68%-(&7
/LQH(OHPHQWVHW
;HUR[
47&/DZUHQFH
$0725
1HHGKHOSRQ$0725
7KHPHVVDJHQXPEHU06*LVOLVWHGIROORZHGE\WKH67$786RIWKHPHVVDJH7KLVVWDWXVLQFOXGHV
WKHPHVVDJHW\SH% %XOOHWLQ7 176WUDIILFDQG3 3HUVRQDOPHVVDJH7KHVHFRQGFKDUDFWHULQWKH
67FROXPQLVWKHFXUUHQWVWDWXVRIWKHPHVVDJH
$%XOOHWLQVWDWXVW\SH%FDQEH
) LWKDVDOUHDG\EHHQIRUZDUGHGWRDQRWKHUIXOOVHUYLFH%%6
+ LWLVEHLQJKHOGIRUUHYLHZE\WKH6<623EHFDXVHLWZDVHQWHUHGLQWRWKH3%%6RYHUWKH
UDGLR
$Q176WUDIILFPHVVDJHW\SH7PD\KDYHDVWDWXVRI
+ LQGLFDWLQJWKDWLWLVEHLQJKHOGIRUUHYLHZE\WKH6<623EHIRUHLWPD\EHIRUZDUGHG
7KH3ULYDWHPHVVDJHW\SH3FDQKDYHWKHIROORZLQJVWDWXVFKDUDFWHUVLQWKHVHFRQGSRVLWLRQ
+ 7KLVLVDSHUVRQDOPHVVDJHWKDWKDVDQ#%%6ILHOGEXWLVEHLQJKHOGIRUUHYLHZE\WKH
6<623EHIRUHLWPD\EHIRUZDUGHG
1 7KLVPHVVDJHLVD3HUVRQDOPHVVDJHWKDWKDVQRWEHHQIRUZDUGHGDQGKDVQRWEHHQUHDGE\
WKHVWDWLRQLWLVDGGUHVVHGWR,ILWLVIRUZDUGHGWRDIXOOVHUYLFH%%6LWZLOOEHGHOHWHGLI
3%.,//):LV21
< 7KLVPHVVDJHKDVEHHQUHDGE\WKHVWDWLRQLWLVDGGUHVVHGWREXWKDVQRWEHHQNLOOHG,WZLOO
QRWEHIRUZDUGHGHYHQLILWKDVDQ#%%6VLQFHLWKDVDOUHDG\EHHQUHDG
(GLWLQJ0HVVDJH+HDGHUV
7KHIROORZLQJFRPPDQGFDQEHXVHGWRHGLWPHVVDJHKHDGHUV
(GLWQ>%37<1)+@>!WRFDOO@>IURPFDOO@>#%%6@ROGQHZ
7KLVFRPPDQGDYDLODEOHRQO\WRXVHUVZLWK6<623DFFHVVDOORZVWKHHGLWLQJRIKHDGHUVDQGFRQWHQW
RIDQ\PHVVDJHLQWKHPDLOER[6\VRSDFFHVVLVDXWRPDWLFZKHQFRQQHFWLQJIURPDORFDOWHUPLQDORU
FDQEHJUDQWHGWRUHPRWHXVHUVFRQQHFWLQJWRWKH3%%6RYHUWKHUDGLRE\SDVVZRUGFRQWURO6HHWKH
VHFWLRQWLWOHG5HPRWH6\VRS$FFHVVWRWKH3%%6IRUPRUHGHWDLO
7KH7<3( RIWKHPHVVDJH
% %XOOHWLQ
3 3ULYDWH
7 7UDIILF
7KH67$786 RIWKHPHVVDJH
< <HV>LWKDVEHHQUHDG@
1 1R>LWKDVQRWEHHQUHDG@
) )RUZDUGHG>LWKDVEHHQIRUZDUGHG@
+ +HOG>LWLVQRWDYDLODEOHIRUUHYHUVHIRUZDUGLQJ@
1RWH ) DQG+ DUHWRJJOHV(QWHULQJ) VZLWFKHVWKHVWDWXVRIWKHPHVVDJHIURP) WR127) RUIURP
127) WR)6LPLODUO\HQWHULQJ+ VZLWFKHVWKHVWDWXVRIWKHPHVVDJHIURP+ WR127+ RUIURP
127+ WR+
:KRWKHPHVVDJHLVWRRUIURP
!WRFDOO
IURPFDOO
7KHGHVWLQDWLRQPDLOER[#%%6
#%%6>KDGGU@
$QGWKHVXEMHFWRUWH[WRIWKHPHVVDJH
,QWKHPHVVDJHUHSODFHWKH),567RFFXUUHQFHRIWKHVWULQJROGZLWKWKHVWULQJQHZ:KHQD
PHVVDJHLVOLVWHGWKHWRFDOODQGIURPFDOODSSHDULQWKH72DQG)520FROXPQVUHVSHFWLYHO\,ID
PHVVDJHKDVEHHQHQWHUHGZLWKDQ#%%6IRUIRUZDUGLQJWKHFRPSOHWHKLHUDUFKLFDODGGUHVVLVVKRZQ
ZKHQWKHPHVVDJHLVUHDG
06*)520.%‘1<.72+(/3#:$(:967;7;86$12$0
7KH#%%6LVDOVROLVWHGZKHQXVLQJWKHVHPLFRORQRSWLRQZLWKDQ\RIWKHOLVWFRPPDQGV
7KH(GLWFRPPDQGFDQEHDFFHVVHGE\FRQQHFWLQJWRWKHPDLOER[IURPWKHDWWDFKHGWHUPLQDORUE\
FRQQHFWLQJRYHUWKHUDGLR:KHQFRQQHFWLQJRYHUWKHUDGLR6<623SULYLOHJHPXVWJDLQHGE\JLYLQJ
WKH6<623FRPPDQGDVWKHILUVWFRPPDQGVHQWWRWKH3%%6:KHQJLYLQJWKH6<623FRPPDQGWKH
3%%6ZLOOUHWXUQDSDVVZRUGYHULILFDWLRQVWULQJWRZKLFKWKHSURSHUUHVSRQVHPXVWEHJLYHQLQRUGHU
WRJDLQ6<623DFFHVV7KLVLVH[SODLQHGLQGHWDLOODWHU
5HYHUVH)RUZDUGLQJ0HVVDJHVIURPWKH0DLOER[
7KH71&PDLOER[ZLOODOORZHQWU\RIPHVVDJHVWREHIRUZDUGHGWRDIXOOVHUYLFH%%65/,0%/
HWF7KHVHPHVVDJHVKDYHDVSHFLDOIRUPDWDQGFDQEHHQWHUHGLQDQ\SHUVRQDOPDLOER[
(QWHULQJDQ#%%6LQWKHDGGUHVVRIDPHVVDJHZLOOPDNHWKDWPHVVDJHDYDLODEOHWREHIRUZDUGHGRU
UHYHUVHIRUZDUGHGWRDIXOOVHUYLFH%%6,QFOXGLQJWKH+,(5$5&+,&$/DGGUHVVRIWKHGHVWLQDWLRQ
%%6ZLOOLPSURYHWKHFKDQFHVRIWKHPHVVDJHWREHGHOLYHUHGSURSHUO\
)RUZDUGLQJDPHVVDJHLVZKHQWKH71&3%%6DXWRPDWLFDOO\FRQQHFWVWRDIXOOVHUYLFH%%6DQGVHQGV
PHVVDJHVWREHSDVVHGWKURXJKWKH%%6V\VWHPWRDQRWKHUVWDWLRQ
5HYHUVHIRUZDUGLQJKDSSHQVZKHQDIXOOVHUYLFH%%6FRQQHFWVDQGVHQGVPHVVDJHVWRD71&3%%6
WKHQDVNVIRUDQGUHFHLYHVDQ\PHVVDJHVIURPWKH3%%6WREHSDVVHGWRDQRWKHUVWDWLRQYLDWKH%%6
IRUZDUGLQJV\VWHP
,IWKHFRPPDQG3%.,//):KDVEHHQVHWWR21VXFFHVVIXOO\IRUZDUGHGPHVVDJHVZLOOEHGHOHWHG
IURPWKH3%%6
%XOOHWLQW\SHPHVVDJHVZLOOEHPDUNHGZLWKDVWDWXVRI)DQGZLOOUHPDLQLQWKH3%%6
1RWH 7RHQDEOHIRUZDUGLQJRUUHYHUVHIRUZDUGLQJIURPWKH3%%6WKH+LHUDUFKLFDODGGUHVVRIWKH
3%%6PXVWEHHQWHUHGLQWKH+7(;7FRPPDQGZKLFKLVUHTXLUHGIRUFRPSOHWHUHWXUQDGGUHVVLQJ
FDSDELOLW\LQIRUZDUGHGPHVVDJHV
+LHUDUFKLFDO$GGUHVVHV
+LHUDUFKLFDODGGUHVVHVDUHXVHGWRDFFRPPRGDWHWKHQDWLRQDOSDFNHWWUDIILFV\VWHPLQFOXGLQJ
PHVVDJHVSURFHVVHGE\3&EDVHGSDFNHWUDGLR%%6V
7KH+7(;7FRPPDQGVHWVWKH+LHUDUFKLFDODGGUHVVRIWKH71&V3%%67KLVLVXVHGZKHQHYHUWKH
3%%6IRUZDUGVPDLOWRDQRWKHU%%6WRSURYLGHFRPSOHWHUHWXUQDGGUHVVLQJFDSDELOLW\$KLHUDUFKLFDO
DGGUHVVFRQVLVWVRIVWDWHFRXQWU\DQGFRQWLQHQWFRGHVVHSDUDWHGE\SHULRGV6RPHDUHDVSDUWLFXODUO\
LQODUJHVWDWHVPD\DOVRXVHVXEVWDWHGHVLJQDWRUV
&RPSOHWHLQIRUPDWLRQRQ+LHUDUFKLFDOIRUZDUGLQJFDQEHREWDLQHGIURPDORFDO%%6VWDWLRQRUV\VWHP
RSHUDWRU%DVLFDOO\WKHILUVWILHOGDIWHUWKH#V\PEROLVWKH+20(%%6RIWKHGHVWLQDWLRQVWDWLRQWR
ZKLFKWKHPHVVDJHLVEHLQJVHQW7KHQH[WVHYHUDOILHOGVDUHWKH+LHUDUFKLFDODGGUHVV7KH\LQFOXGH
GHVLJQDWRUVIRUVXEVWDWHVWDWHFRXQWU\DQGFRQWLQHQW
2WKHU3%%6IHDWXUHVLQFOXGHWKHDELOLW\WRVHOHFWZKHWKHURUQRWWRNLOOSULYDWHDQGWUDIILFPHVVDJHV
DIWHUWKH\KDYHEHHQIRUZDUGHGDQGZKHWKHURUQRWWR+2/'PHVVDJHVUHFHLYHGRYHUWKHUDGLR
7KH3+($5'FRPPDQGZLOOVKRZWKHFDOOVLJQVRIVWDWLRQVWKDWUHFHQWO\FRQQHFWHGWRWKHPDLOER[
DORQJZLWKWKHLUVWDUWDQGVWRSWLPHV
$GYDQFHG&RQILJXUDWLRQRIWKH3%%6
:KHQWKH71&LVILUVWLQLWLDOL]HGDQGLWVFDOOVLJQKDVEHHQVHWWKH3%%6ZLOODXWRPDWLFDOO\EH
HQDEOHGDQGWKH3%%6LVDOORFDWHG.E\WHVRI5$07KH0<3%%6FDOOVLJQLVVHWWREHWKHVDPH
DVWKH71&FDOOVLJQEXWZLWKDGLIIHUHQW66,'RI
7KHVL]HRIWKH3%%6PD\EHFKDQJHGXVLQJWKH3%%6FRPPDQG7KHPD[LPXPDPRXQWRIPHPRU\
DYDLODEOHWRDOORFDWHWRWKH3%%6ZLOOGHSHQGRQWKHDPRXQWRIIUHHPHPRU\DYDLODEOH18012'(6
0$;86(56DQG0<5(027(HWFZLOODIIHFWWKHDPRXQWRIDYDLODEOHPHPRU\
&KDQJLQJWKHVL]HRIWKH3%%6ZLOOQRWFDXVHH[LVWLQJPHVVDJHVWREHUHQXPEHUHG,IWKHQHZ3%%6
VL]HLVVWLOOODUJHHQRXJKWRFRQWDLQH[LVWLQJPHVVDJHVQRQHRIWKHPZLOOEHORVW
7RUHQXPEHUDOOH[LVWLQJPHVVDJHVLQWKH3%%6EHJLQQLQJDWQXPEHUUHHQWHUWKH3%%6VL]HWRWKH
VDPHDVWKHFXUUHQWVL]H(QWHUWKH3%%6FRPPDQGDORQHILUVWWRILQGLWVFXUUHQWVL]H
0RVWRIWKH71&IXQFWLRQVUHPDLQDFWLYHHYHQZKHQWKHWHUPLQDOLVWXUQHGRIIRUGLVFRQQHFWHGIURP
WKH.$0;/:KHQWKLVLVWKHFDVHRWKHUVWDWLRQVFRQQHFWLQJWRWKH0<&$//RIWKH.$0;/ FDQEH
VHQWWRWKHPDLOER[DXWRPDWLFDOO\WROHDYHDPHVVDJHRUUHDGPHVVDJHVDGGUHVVHGWRWKHP
%HIRUHH[LWLQJWKHWHUPLQDOSURJUDPVHWWKHFRPPDQG&06*WR3%%67KH&7(;7FRPPDQGFDQ
DOVREHVHWWRLQIRUPWKHFRQQHFWLQJVWDWLRQWKDWWKHXVHURIWKH71&LVQRWDYDLODEOHDWWKLVWLPHDQG
WKHPDLOER[ZLOODQVZHULQVWHDG
$FXVWRPJUHHWLQJPHVVDJHDVVSHFLILHGE\WKH37(;7FRPPDQGFDQEHLQFOXGHGLQWKHVLJQRQRI
WKH3%%6DQGVHQWWRXVHUVFRQQHFWLQJWRWKH3%%67KH37(;7PHVVDJHFDQFRQWDLQDWH[WVWULQJRI
XSWRFKDUDFWHUV
7KH71&RZQHUFDQVHQGWKH',6&211(&70<3%%6FRPPDQGWKDWZLOOFDXVHWKH3%%6WR
LPPHGLDWHO\GLVFRQQHFWIURPDFRQQHFWHGVWDWLRQ
,IDVWDWLRQKDVFRQQHFWHGWRWKH3%%6EXWQRDFWLYLW\RFFXUVRQWKHFRQQHFWLRQIRUPLQXWHVWKH
3%%6WLPHRXWWLPHUZLOODXWRPDWLFDOO\GLVFRQQHFWWKHXVHUWRPDNHWKH3%%6DYDLODEOHWRRWKHU
VWDWLRQV
,IDFRPPXQLW\EXOOHWLQERDUGIRUZDUGVPHVVDJHVLQWRWKH3%%6LWZLOOLQFOXGHWKHURXWLQJKHDGHUV
ZKLFKDUHWKHOLQHVEHJLQQLQJZLWK57KHURXWLQJKHDGHUVVKRZWKHFRPSOHWHSDWKWDNHQE\WKH
PHVVDJH%\GHIDXOWWKHVHKHDGHUVZLOOEHVWRUHGZLWKHDFKPHVVDJH7RFRQVHUYHPDLOER[VSDFHDOO
EXWWKHODVWURXWLQJKHDGHUFDQEHWKURZQDZD\E\VHWWLQJWKHFRPPDQG3%+($'(5WR2))
7RVHWWKH3%%6WRDFFHSWRQO\WKRVHPHVVDJHVDGGUHVVHGWRWKH71&V0<&$//RU0<3%%6RU
FDOOVRUQDPHVLQWKH3%/,67VHWWKH3%3(5621FRPPDQG21
)LQDOO\WKH3%/2FRPPDQGLVXVHGWRGHWHUPLQHWKHRUGHULQZKLFKPHVVDJHVDUHOLVWHGWRDXVHU
:KHQVHWWR2/'OLVWHGPHVVDJHVZLOOEHVHQWLQWKHRUGHURIROGHVWWRQHZHVW:KHQVHWWR1(:WKH
OLVWZLOOEHQHZHVWWRROGHVW:KHQWKHRSWLRQRI),;('LVDGGHGWKHXVHUFDQQRWFKDQJHWKHOLVWLQJ
RUGHUDQGZKHQVHWWR9$5,$%/(WKHXVHUPD\FKDQJHWKHRUGHUE\VHQGLQJWKH/2FRPPDQG
5HPRWH6<623$FFHVVWRWKH3%%6
8VHUVRIWKH3%%6WKURXJKDUDGLRFRQQHFWLRQFDQJDLQUHPRWH6<623DFFHVVE\HQWHULQJWKH6<623
FRPPDQGDVWKHILUVWFRPPDQGDIWHUFRQQHFWLQJWRWKH3%%6
8SRQUHFHLYLQJWKH6<623FRPPDQGIURPDUHPRWHXVHUWKH3%%6ZLOOUHWXUQWKUHHOLQHVRIILYH
QXPEHUVHDFK7KHVHQXPEHUVLQGLFDWHWKHFKDUDFWHUSRVLWLRQVLQWKH57(;7FRPPDQG7KLVLVWKH
VDPHSDVVZRUGDFFHVVTXHU\DVZKHQDUHPRWHXVHUFRQQHFWVWRWKH0<5(027(FDOOVLJQ
5RXWLQJ/LQHV
8QGHUFXUUHQW)&&UHTXLUHPHQWV%%6V\VWHPVWKDWFDQVWRUHDQGIRUZDUGPHVVDJHVZLWKRXWDQ
RSHUDWRUEHLQJSUHVHQWPXVWKDYHWKHFDSDELOLW\WRSURYLGHDUHFRUGRIWKHSDWKWKHPHVVDJHKDVWDNHQ
IURPLWVRULJLQDWLRQ7RDFFRPSOLVKWKLV%%6VLQFOXGHDURXWLQJOLQHEHJLQQLQJZLWK57KLV5
OLQHLQFOXGHVWKHGDWHDQGWLPHWKHPHVVDJHZDVUHFHLYHGPHVVDJHQXPEHU%%6FDOOVLJQDQG
KLHUDUFKLFDOURXWLQJLQIRUPDWLRQ
:KHQUHDGLQJPHVVDJHVXVLQJWKH5+FRPPDQGWKHFRPSOHWHKHDGHURIWKHPHVVDJHLVGLVSOD\HG
LQFOXGLQJWKHURXWLQJOLQHV,IWKHFRPPDQG3%+($'(5KDVEHHQVHWWR2))RQO\WKHODVWURXWLQJ
OLQHLVVDYHGZLWKIRUZDUGHGPHVVDJHV
.$12'(
2YHUYLHZ
7KH.$1RGHLVDVLPSOHSDFNHWQHWZRUNLQJQRGH:KHQHQDEOHGWKLVVWDWLRQFDQEHXVHGE\RWKHU
VWDWLRQVQRWRQO\DVDGLJLSHDWHUEXWDOVRDVDQRGHKHOSLQJWKHPWRILQGSDWKZD\VWRRWKHUVWDWLRQV
WKDWWKH\FDQQRWUHDFK
.$1RGHVOLNHRWKHUQHWZRUNLQJQRGHVVXFKDV1(7520RSHUDWHPRUHHIILFLHQWO\WKDQGR
GLJLSHDWHUVDVDOLQNEHWZHHQWZRVWDWLRQV(QGWRHQGDFNQRZOHGJHPHQWRIUHFHLYHGSDFNHWVLVQRW
UHTXLUHGZLWKWKHQRGHVLQVWHDGWKH\KDQGOHHUURUVEHWZHHQHDFKRWKHUUDWKHUWKDQIURPHQGWRHQG
ZKLFKFDQFDXVHH[WUDWUDIILFZKHQHUURUVRULQWHUIHUHQFHRFFXUV$.$1RGHKRZHYHULVVLOHQWLQ
WKDWLWGRHVQRWDXWRPDWLFDOO\FRQQHFWWRDQGH[FKDQJHURXWLQJGDWDZLWKDGMDFHQWQRGHVDVGRIXOO\
IHDWXUHVQRGHVVXFKDV1(7520;-RU.DQWURQLFV.1HW
&RQVHTXHQWO\XVHUVFDQQRWLVVXHDFRQQHFWWRDGLVWDQWVWDWLRQZLWKRXWNQRZLQJWKHSDWKDVWKH\
VRPHWLPHVFDQZLWKDIXOO\IHDWXUHGQRGH$WWKHVDPHWLPH.$1RGHVDUHXVHIXOLQWKDWWKH\DUH
PRUHHIILFLHQWWKDQGLJLSHDWHUVLQXVLQJFKDQQHOWLPHZKLOHQRWUHTXLULQJWKHHIIRUWDQGWLPHUHTXLUHG
WRPDLQWDLQDIXOOIXQFWLRQQHWZRUNQRGH
&RQILJXULQJ7KH.$1RGH
7KHIROORZLQJFRPPDQGVDUHXVHGWRFRQILJXUHWKH.$1RGH18012'(60<12'(1':,/'
.17,0(5DQG.1;&21
7KHFRPPDQG18012'(6ZKHQVHWWRDQXPEHUJUHDWHUWKDQ]HURHQDEOHVWKH.$1RGH7KH
QXPEHUVHWVWKHQXPEHURIFLUFXLWVFKDQQHOVDOORZHGWKURXJKWKH.$1RGH(DFKFLUFXLWFRQVLVWVRI
DFRQQHFW,1IURPDVWDWLRQWRWKHQRGHDQGDFRQQHFW287IURPWKHQRGHWRDQRWKHUVWDWLRQ(DFK
.$1RGHFLUFXLWDOORZHGZLOOUHTXLUHDSSUR[LPDWHO\.RIPHPRU\
,IDQDWWHPSWLVPDGHWRVHW18012'(6WRDYDOXHUHTXLULQJPRUHPHPRU\WKDQDYDLODEOHDPHVVDJH
LQGLFDWLQJWKDWWKHYDOXHLVRXWRIUDQJHZLOOEHGLVSOD\HG7KHWRWDOQXPEHURIFLUFXLWVWKDWFDQEH
DOORFDWHGZLOOEHDIIHFWHGE\WKHDPRXQWRIPHPRU\DOORFDWHGWRWKH3HUVRQDO0DLOER[DQGRWKHU71&
IXQFWLRQV
7KHFDOOVLJQDVVLJQHGWRWKH.$1RGHE\WKH0<12'(FRPPDQGPXVWEHGLIIHUHQWIURPWKH
FDOOVLJQVXVHGIRUWKH71&VRWKHUIXQFWLRQVVXFKDV0<&$//0<$/,$60<3%%6
0<5(027(%\GHIDXOWWKH71&VHWVWKH0<12'(WRWKHFDOOVLJQWKDWZDVXVHGWRLQLWLDOL]HWKH
71&ZLWKDQ66,'RI
,IWKHFRPPDQG1':,/'KDVEHHQVHWWR21WKH.$1RGHZLOODFFHSWFRQQHFWUHTXHVWVWRDQ\66,'
RILWVFDOOVLJQ0<12'(H[FHSWWKRVHDOUHDG\DVVLJQHGWRWKH71&VRWKHUIXQFWLRQV
3DFNHWVSDVVLQJWKURXJKWKH.$1RGHDUHPRQLWRUHGDQGGLVSOD\HGXQOHVVWKH0<12'(FDOOVLJQLV
LQFOXGHGLQWKH683/,67FRPPDQG
,ILWEHFRPHVQHFHVVDU\WRGLVFRQQHFWDVWDWLRQIURPWKH.$1RGHLVVXHWKHFRPPDQG',6&211(&7
0<12'([ZKHUH[LVWKHQXPEHURIWKHFKDQQHOWRGLVFRQQHFW
7KHFRPPDQG.17,0(5VHWVDWLPHRXWWRFOHDULQDFWLYHFRQQHFWLRQV,IQRGDWDSDVVHVWKURXJKD
FLUFXLWIRUQPLQXWHVWKHQWKDWFLUFXLWFRQQHFWLQDQGRXWZLOOEHGLVFRQQHFWHG7KHGHIDXOWWLPHLV
PLQXWHV7KHWLPHRXWIXQFWLRQFDQEHGLVDEOHGE\VHWWLQJQWR
7KHVHWWLQJRIWKHFRPPDQG.1;&21ZKHQVHWWR21DOORZVFRQQHFWLQJVWDWLRQVWRFRQQHFWRXWRQ
WKHRSSRVLWHSRUWRIWKH71&
8VLQJD.$1RGH
7KH.$1RGHIXQFWLRQLVIRUXVHE\RWKHUVWDWLRQV:KHQDVWDWLRQFRQQHFWVWKH.$1RGHZLOOUHWXUQ
LWVFRPPDQGOLQHZKLFKLVVLPLODUWRWKHFRPPDQGOLQHRIWKH3%%67KHFRPPDQGVDYDLODEOHDUH%
&-1RU+HOS";ZLOOEHLQFOXGHGLIWKH.1;&21FRPPDQGLV213UHFHGLQJWKHFRPPDQGOLQH
ZLOOWKHWH[WVSHFLILHGLQWKHFRPPDQG17(;7LIHQWHUHG
7KHFRPPDQG%LVIRU%<(:KHQLWLVUHFHLYHGWKH.$1RGHZLOOGLVFRQQHFW
7KHFRPPDQG&LVIRU&211(&7,WLVHQWHUHGZLWKWKHFDOOVLJQRIDGHVWLQDWLRQVWDWLRQWRZKLFKWKH
QRGHLVWRFRQQHFW,IWKHRSWLRQDO6IRU67$<LVLQFOXGHGDIWHUWKHFDOOVLJQWKH.$1RGHZLOO
UHPDLQFRQQHFWHGWRWKHVWDWLRQWKDWFRQQHFWHG,1DIWHUWKHGHVWLQDWLRQVWDWLRQKDVEHHQGLVFRQQHFWHG
7KHFRPPDQG-LVIRU-+($5'VWDWLRQVKHDUG:KHQUHFHLYHGDOLVWRIFDOOVLJQVRIVWDWLRQVIURP
ZKLFKSDFNHWVZHUHUHFHQWO\KHDUGE\WKH71&ZKLFKFRQWDLQVWKH.$1RGHZLOOEHUHWXUQHG,IWKH
RSWLRQDO/IRU/21*LVLQFOXGHGZLWKWKH-FRPPDQGWKHOLVWZLOOLQFOXGHGDWHVDQGWLPHVWKH
SDFNHWVIURPWKRVHVWDWLRQVZHUHKHDUGWKHGHVWLQDWLRQFDOOVLJQVLQWKHSDFNHWVWKH\VHQWDQGDQ\
GLJLSHDWHUVXVHG7KHIRUPDWRIWKHGDWHDQGWLPHVLQWKHOLVWZLOOEHDVVSHFLILHGE\WKH71&V
'$<675,1*FRPPDQG
7KHFRPPDQG1LVIRU12'(6KHDUG:KHQWKH71&KHDUV,'SDFNHWVIURPRWKHUVWDWLRQVWKDW
LQFOXGHDFDOOVLJQZLWKD1WKDWFDOOVLJQLVLQFOXGHGLQWKH1RGHVKHDUGOLVW,IQR1FDOOVLJQVKDYH
EHHQKHDUGLQDQ\,'SDFNHWVWKHUHVSRQVHZLOOEH12.12:112'(6$VZLWKWKH-FRPPDQG
WKHRSWLRQDO/ZLOOUHWXUQPRUHLQIRUPDWLRQDERXWWKRVHVWDWLRQVKHDUG
8VLQJWKH;&211(&7&RPPDQG
7KH;FRPPDQGIRUFURVVFRQQHFWLVDXQLTXHIHDWXUHRIWKH.$1RGH,WDOORZVFURVVOLQNLQJ
EHWZHHQWZRIUHTXHQFLHVWKURXJKWKHQRGHLQPXFKWKHVDPHPDQQHUDVWKH.DQWURQLFVXQLTXH
JDWHZD\EXWZLWKORFDODFNQRZOHGJPHQWRISDFNHWV
'HWHUPLQLQJ:KLFK3RUW<RX+DYH&RQQHFWHG7R
:KHQFRQQHFWHGWRDPXOWLSRUWQRGHWKH-+($5'FRPPDQGFDQEHXVHGWRGHWHUPLQHZKLFKSRUWRI
WKHQRGH\RXKDYHFRQQHFWHGWR$W\SLFDOQRGHUHVSRQVHWRWKH-+($5'FRPPDQGPD\EHGLVSOD\HG
DVVKRZQD.$03OXVZRXOGXVH+DQG9LQVWHDGRIDQG
1
1‘.1
:‘;,
.&‘.21
,QWKLVLOOXVWUDWLRQWKHQXPEHUIROORZLQJWKHVODVKLQGLFDWHVWKHSRUWWKHVWDWLRQZDVKHDUGRQ<RXU
FDOOVLJQZLOOXVXDOO\EHWKHODVWRQHLQWKLVOLVW
<RXFDQQRZVHHWKDWE\FRPSDULQJWKHSRUWRQZKLFK\RXUFDOODSSHDUVLQWKH-+($5'OLVWWRWKHSRUW
LQGLFDWHGIRURWKHUVWDWLRQV\RXFDQGHWHUPLQHZKHWKHUWR&211(&7RU;&211(&7WRWKHVWDWLRQ
RI\RXUFKRLFH
7KH;FRPPDQGIRUFURVVFRQQHFWLVDXQLTXHIHDWXUHRIWKH.$1RGH,WDOORZVFURVVOLQNLQJ
EHWZHHQWZRIUHTXHQFLHVWKURXJKWKHQRGHLQPXFKWKHVDPHPDQQHUDVWKH.DQWURQLFVXQLTXH
JDWHZD\EXWZLWKORFDODFNQRZOHGJPHQWRISDFNHWV
'HWHUPLQLQJ:KLFK3RUW<RX+DYH&RQQHFWHG7R
:KHQFRQQHFWHGWRDPXOWLSRUWQRGH\RXFDQGHWHUPLQHZKLFKSRUW\RXDUHRQDWWKHQRGHE\XVLQJ
WKH-+($5'FRPPDQG$W\SLFDOQRGHUHVSRQVHWRWKH-+($5'FRPPDQGPD\DSSHDURQ\RXU
GLVSOD\DVVKRZQ
1
1‘.1
:‘;,
.&‘.21
,QWKLVLOOXVWUDWLRQWKHQXPEHUIROORZLQJWKHVODVKLQGLFDWHVWKHSRUWWKHVWDWLRQZDVKHDUGRQ<RXU
FDOOVLJQZLOOXVXDOO\EHWKHODVWRQHLQWKLVOLVW
<RXFDQQRZVHHWKDWE\FRPSDULQJWKHSRUWRQZKLFK\RXUFDOODSSHDUVLQWKH-+($5'OLVWWRWKHSRUW
LQGLFDWHGIRURWKHUVWDWLRQV\RXFDQGHWHUPLQHZKHWKHUWR&211(&7RU;&211(&7WRWKHVWDWLRQ
RI\RXUFKRLFH
.$1RGH&RPPDQGVIRU5HPRWH8VH
:KHQDFFHVVHGE\UDGLRWKH.$1RGHKDVVHYHUDOFRPPDQGVDYDLODEOH7KHVHFRPPDQGVDUHOLVWHG
KHUHIRUUHIHUHQFHZLWKDGHVFULSWLRQRIHDFKFRPPDQG,QWKHVHGHVFULSWLRQVWKH833(5FDVH
FKDUDFWHUVRIWKHFRPPDQGDUHUHTXLUHGZKLOH/2:(5FDVHFKDUDFWHUVDUHRSWLRQDO7KRVHLWHPV
OLVWHGZLWKLQ>@ DUHRSWLRQDODQGLIXVHGWKH833(5/2:(5FDVHFRQYHQWLRQDSSOLHV
$%257
$ERUWVD.$1RGH&RQQHFWRU;FRQQHFWUHTXHVWLILWLVWKHILUVWGDWDVHQWDIWHUWKHFRQQHFWUHTXHVW,W
PXVWEHVSHOOHGRXWHQWLUHO\
%\H
&DXVHVWKH.$1RGHWRLQLWLDWHDGLVFRQQHFW
&RQQHFW FDOOVLJQ>6WD\@
&DXVHVWKHQRGHWRLVVXHDFRQQHFWUHTXHVWWRFDOOVLJQLQWKHXVXDO$;PRGH,IWKHFRQQHFWLV
VXFFHVVIXODOLQNZLOOEHPDGHWRWKHQH[WQRGHRUHQGXVHUVWDWLRQFDOOHG7KHRSWLRQDO6WD\IHDWXUH
SURYLGHVDZD\WRGLVFRQQHFWZLWKRXWORRVLQJWKHHQWLUHOLQN1RUPDOO\ZKHQDGLVFRQQHFWRFFXUV
ZKHWKHULVVXHGE\\RXRUE\WKHUHPRWHVWDWLRQWKHFRQQHFWLRQWRWKH.$1RGHLVDOVRORVW8VLQJWKH
6WD\RSWLRQDOORZV\RXWRVWD\FRQQHFWHGWRWKH.$1RGHZKHQWKHUHPRWHVWDWLRQLVVXHVDGLVFRQQHFW
+HOS
&DXVHVWKH.$1RGHWRVHQGDEULHIKHOSOLVWVKRZLQJDOOFRPPDQGVDYDLODEOHZLWKWKHRSWLRQVDQGD
VKRUWGHVFULSWLRQRIHDFKFRPPDQG
-KHDUG >6KRUW_/RQJ@
&DXVHVWKH.$1RGHWRUHWXUQLWV0+($5'VWDWLRQVKHDUGORJ
7KHVKRUW-+($5'6YHUVLRQRIWKLVFRPPDQGZRXOGSURGXFHWKHVDPHOLVWZLWKRXWGDWHVDQG
WLPHV
7KHORQJ-+($5'/YHUVLRQRIWKLVFRPPDQGZLOOLQFOXGHGDWHWLPHVWDPSWKHGHVWLQDWLRQILHOG
DQGDQ\GLJLSHDWHUVXVHG
1RGHV >6KRUW_/RQJ@
&DXVHVWKHQRGHWRUHWXUQDOLVWRI.$1RGHVLWKDVKHDUGDVZHOODV.1HW*%341(7520DQG
7KH1HWQRGHV7KHIRUPDWRIWKHOLVWLVVLPLODUWRWKDWRIWKH-+($5'OLVWDERYH
;FRQQHFW FDOOVLJQ
&DXVHVWKHQRGHWRLVVXHDFRQQHFWUHTXHVWWRWKHVSHFLILHGFDOOVLJQRQWKHRSSRVLWHSRUWRIWKH.$
1RGH
.1(7
7KH.1(7QRGHLVDQDGYDQFHGQHWZRUNQRGHFRPSDWLEOHZLWKRWKHUQHWZRUNQRGHVVXFKDV
1(75207+(1(7DQG*%34
:KHQWKH.1(7IXQFWLRQLVHQDEOHGRWKHUVWDWLRQVFDQFRQQHFWWKURXJKLWWRRWKHUQHWZRUNQRGHVRU
GLUHFWWRDGHVWLQDWLRQVWDWLRQ
1HWZRUNQRGHVZRUNWRJHWKHUWRFRQILJXUHDFRQVWDQWO\XSGDWLQJQHWZRUNV\VWHPWRDLGLQGLYLGXDO
SDFNHWVWDWLRQVLQPDNLQJFRQWDFWVZLWKGLVWDQWVWDWLRQVWKH\FDQQRWUHDFKGLUHFWO\
7KHDGYDQWDJHRIDQHWZRUNQRGHV\VWHPLVWZRIROGDXWRPDWLFURXWLQJRIFRQQHFWLRQVWRRWKHU
QHWZRUNQRGHVDQGLQFUHDVHGGDWDWKURXJKSXW$QHWZRUNQRGHNQRZVKRZWRDXWRPDWLFDOO\URXWH
GDWDWKURXJKQHLJKERULQJQRGHVWRGLVWDQWQRGHVRQWKHQHWZRUN7KH\GRWKLVE\KHDULQJRWKHUQRGHV
EURDGFDVWWKLVLQIRUPDWLRQ7KLVPHDQVWKDWDXVHUFRQQHFWHGWRDQRGHGRHVQRWQHHGWRVSHFLI\WKH
SDUWLFXODUURXWHWRWDNHLQRUGHUWRUHDFKDGLVWDQWQRGHDVORQJDVWKHORFDOQRGHFRQWDLQVDOLVWLQJIRU
WKDWGLVWDQWQRGH8VLQJDQHWZRUNQRGHFDQDOVRGUDPDWLFDOO\LQFUHDVHWKHGDWDWKURXJKSXWWRGLVWDQW
ORFDWLRQV7KHSDFNHWGDWDDQGWKHDFNQRZOHGJHPHQWVWUDYHOIURPQRGHWRQRGHUDWKHUWKDQIURPHQG
WRHQGJUHDWO\UHGXFLQJWKHLQHYLWDEOHGDWDFROOLVLRQVWKDWZLOORFFXUZKHQDWWHPSWLQJWR
FRPPXQLFDWHRYHUORQJGLVWDQFHV
7KHGHIDFWRVWDQGDUGQHWZRUNLQJSURWRFRO1(7520ZDVGHYHORSHGLQWKHODWH
VE\6RIWZDUH
,QF6LQFHWKHQRWKHUQRGHGHULYDWLYHVVXFKDV7KH1(77KH1(73OXV7KH1(7;-DQG
*%34HYROYHG$OWKRXJKWKHVHYDULDQWVGLIIHULQWKHLUIHDWXUHVWKH\DOOXWLOL]HWKHVDPHEDVLF
QHWZRUNLQJSURWRFRO
7KH.1HWIHDWXUHDGGVWKHIXQFWLRQRIDGXDOSRUWQHWZRUNQRGHWRWKHRSHUDWLRQRIWKH.$0;/$OO
QRUPDOIXQFWLRQVRIWKH.$0;/ FDQUHPDLQDFWLYHLQFOXGLQJ3%%6RSHUDWLRQGXDOSRUWSDFNHW
RSHUDWLRQVDQGUHPRWHDFFHVV7KLVPHDQVWKDWWKH.$0;/ FDQVWLOOEHXVHGLQQRUPDORSHUDWLRQ
ZKLOHDOVRSURYLGLQJWKHORFDODUHDZLWKDGXDOSRUWQHWZRUNQRGHWKDWRSHUDWHVLQWKHEDFNJURXQGRI
QRUPDO71&SDFNHWRSHUDWLRQV
.1HWLVIXOO\FRPSDWLEOHZLWKWKHEDVLFQHWZRUNSURWRFROVDQGSURYLGHVWZRSRUWVWKDWFDQEHDGGHG
WRH[LVWLQJQHWZRUNV,WDOVRVXSSRUWVWKH1(7520LQWHUIDFHFRPPXQLFDWLRQWKURXJKWKH$8;
FRQQHFWRUDQGFDQEHFRQQHFWHGWRDQRGHVWDFN
.1HW&RQILJXUDWLRQ
7KHIDFWRU\GHIDXOWYDOXHVLQWKH.$0;/ KDYHWKHQHWZRUNQRGHIXQFWLRQGLVDEOHG7RHQDEOHWKH.
1HWQRGHWKH1(7$/,$6DQG1(7&$//FRPPDQGVPXVWEHHQWHUHG1(7$/,$6LVXVXDOO\VHWWRD
PQHPRQLFWKDWJLYHVXVHUVDQLGHDDERXWZKHUHWKHQRGHLVORFDWHGRWKHUQHWZRUNQRGHVGRQRWFDUH
ZKDWWKHDOLDVQDPHLV
)RUH[DPSOH/$:LVDJRRG1(7$/,$6IRUDQHWZRUNQRGHLQVWDOOHGLQDQDUHDLQFOXGLQJWKHFLW\RI
/DZUHQFH.DQVDV7KH1(7&$//LVWKHFDOOVLJQRIWKHQHWZRUNQRGH,WFRQVLVWVRIDYDOLGFDOOVLJQ
DQG66,'VXFKDV1‘.1DQGPXVWEHGLIIHUHQWIURPDQ\RWKHUFDOOVLJQXVHGLQWKH.$0;/ IRU
LWVRWKHUIXQFWLRQV(QWHULQJDFDOOVLJQLQWKH1(7&$//FRPPDQGZLOOFDXVHDVRIWUHVHWDVPHPRU\LV
DOORFDWHGIRUWKHQRGHRSHUDWLRQ
6HYHUDORIWKHQHWZRUNQRGHFRQILJXUDWLRQFRPPDQGVFDQRQO\EHFKDQJHGZKLOHLQFRPPDQGPRGH
&KDQJLQJWKHSDUDPHWHUYDOXHVRIDQ\RIWKHVHFRPPDQGV1(7%8))61(7&,5&61(7'(676
(7/,1.61(75287(DQG1(786(56ZLOODOVRFDXVHDVRIWUHVHWDVPHPRU\LVDOORFDWHGIRU
WKHLUXVH7KHLUIXQFWLRQVDQGSDUDPHWHUYDOXHUDQJHVDUHOLVWHGLQWKHFRPPDQGVHFWLRQ
2WKHU.1HWQRGHSDUDPHWHUVFDQRQO\EHDFFHVVHGRUFKDQJHGZKLOHFRQQHFWHGWRWKHQRGHDVV\VRS
8QOLNHWKH.$1RGHZKLFKFDQQRWEHDFFHVVHGIURPWKHORFDOWHUPLQDOD.1HWQRGHZLOODFFHSWD
FRQQHFWUHTXHVWIURPWKHORFDOWHUPLQDODOORZLQJV\VRSDFFHVVWRFKDQJHWKHQHWZRUNQRGHSDUDPHWHU
VHWWLQJV-XVWVHQGD&211(&7FRPPDQGWRWKH1(7$/,$6RU1(7&$//FDOOVLJQVDQGWKH
QHWZRUNQRGHZLOOUHVSRQGLQWKHVDPHZD\LWZRXOGUHVSRQGWRDXVHUIURPDQRWKHU71&
7RJDLQ6<623DFFHVVZKHQFRQQHFWLQJWRWKHQRGHIURPDQRWKHU71&WKHILUVWFRPPDQGVHQWWRWKH
QRGHPXVWEHWKH6<623FRPPDQG7KHVDPHSDVVZRUGHQWU\PXVWWKHQEHVHQWLQWKHVDPHZD\DV
ZKHQUHTXHVWLQJ6<623DFFHVVWRWKH3%%6RU0<5(027(
8SRQFRQQHFWLQJWRWKHQRGHLWZLOOQRWUHWXUQDFRPPDQGOLQHRUQRGHSURPSWEXWVLPSO\VHQGLQJD
FDUULDJHUHWXUQSUHVVLQJWKH(17(5NH\ZLOOFDXVHDGLVSOD\RIWKHQRGHFRPPDQGVDYDLODEOH7R
VHHWKHFXUUHQWVHWWLQJRIDQ\QRGHFRPPDQGW\SHWKDWFRPPDQGQDPHDQG(17(5
$VKRUWGHVFULSWLRQRIDQ\FRPPDQGLVDYDLODEOHE\HQWHULQJ+HOSRU"DQGWKHFRPPDQGQDPH
6KRUWGHVFULSWLRQVRIDOODYDLODEOHQRGHFRPPDQGVZLOOEHUHWXUQHGE\WKH+(/3+(/3FRPPDQG
2QFHWKHQRGHKDVEHHQHQDEOHGVRPHRILWVWH[WPHVVDJHVVKRXOGEHVHWWRSURYLGHRWKHUXVHUVZLWK
KHOSIXOLQIRUPDWLRQDERXWWKH.1HWQRGH)LUVWFRQQHFWWRWKHQRGHDVV\VRSDQGHQWHUHDFK
FRPPDQG&7(;7,1)2RU32576IROORZHGE\WH[WPHVVDJHV
&7(;7IRUFRQQHFWWH[WLVVHQWZKHQDVWDWLRQFRQQHFWVWRWKHQHWZRUNQRGH,WPD\EHDJUHHWLQJ
PHVVDJHIROORZHGE\VKRUWLQVWUXFWLRQVDERXWKRZWRJHWPRUHKHOSDERXWWKHQRGHRSHUDWLRQ
,1)2RUQRGHLQIRUPDWLRQFRXOGEHD PHVVDJHLQGLFDWLQJWKHORFDWLRQRIWKHQRGHRULWVFRYHUDJH
DUHDDQGQRGHHTXLSPHQWVXFKDV71&W\SHUDGLRVHWF
32576RUSRUWLQIRUPDWLRQFRXOGEHDPHVVDJHLQGLFDWLQJWKHFKDQQHOVLQXVHE\WKHUDGLRVWKDWDUH
FRQQHFWHGWRHDFKSRUWRIWKH71&DQGEDXGUDWHVDYDLODEOH
1RWH ,QRUGHUWRVXFFHVVIXOO\LQWHJUDWHDQ\QHZQHWZRUNQRGHLQWRDQH[LVWLQJQHWZRUNV\VWHPHIIRUWV
VKRXOGEHPDGHWRFRRUGLQDWHZLWKQHLJKERULQJQHWZRUNQRGHV\VRSV0DQ\RIWKHSDUDPHWHUVHWWLQJV
RIHDFKLQGLYLGXDOQRGHZLOODIIHFWWKHRSHUDWLRQRIWKHHQWLUHQHWZRUNV\VWHPDQGLIVHWWRFRQIOLFWLQJ
YDOXHVFDQGHJUDGHSHUIRUPDQFHRIWKHQRGHQHWZRUN
1HWZRUNLQJWHUPV
12'( 7KHWHUPQRGHUHIHUVWRDQHWZRUNQRGHVXFKDVD*%34;-RU1(7520QRGH1RQ
QHWZRUNQRGHVVXFKDVD.$1RGHFRQIHUHQFHEULGJHVDQGGLJLSHDWHUVGRQRWDSSO\WRWKLVFRQFHSW
RIRSHUDWLRQ
86(5 $XVHULVHLWKHUDUHDOOLYHSHUVRQXVLQJD71&WRFRQQHFWWRDQGXVHWKHQHWZRUNQRGHRUD
VHUYHU%%6WKDWLVEDVLFDOO\GRLQJWKHVDPHWKLQJXQGHUFRPSXWHUFRQWURO
1(,*+%2512'( $QHLJKERU1RGHLVDQRWKHUQHDUE\QRGHWKDWFDQEHKHDUGDQGFRQQHFWHGWR
GLUHFWZLWKRXWXVLQJDQLQWHUPHGLDWHQRGH1RWHWKDWGLJLSHDWHURSHUDWLRQLVDOORZHGPD[7KLV
PHDQVWKDWDQRGHFDQEHRXWRIUDQJHEXWFDQVWLOOEHFRQVLGHUHGDQHLJKERUVLQFHWKHFRQQHFWSDWK
GRHVQRWXVHDQ\RWKHUQRGHV$OONQRZQQHLJKERUQRGHVWKRVHQRGHVIURPZKLFKQRGHVEURDGFDVWV
DUHKHDUGGLUHFWDUHGLVSOD\HGZLWKWKH5287(6FRPPDQG
',67$1712'( $GLVWDQWQRGHLVDQRGHWKDWLVWRRIDUDZD\WRFRQQHFWWRGLUHFWDQGUHTXLUHV
WKHXVHRIRQHRUPRUHQHWZRUNQRGHVWRUHDFK'LVWDQWQRGHVZLOOQRWEHGLVSOD\HGE\WKH5287(6
FRPPDQG
'(67,1$7,2112'( $GHVWLQDWLRQQRGHLVDQRGHWKDW\RXUQRGHNQRZVKRZWRFRQQHFWWR
HLWKHUGLUHFWO\DVDQHLJKERUQRGHRUE\XVLQJRQHRUPRUHLQWHUPHGLDWHQRGHV$OONQRZQGHVWLQDWLRQ
QRGHVQHLJKERUQRGHVDQGGLVWDQWQRGHVDUHGLVSOD\HGZLWKWKH12'(6FRPPDQG
$OOQHLJKERUQRGHVDUHGHVWLQDWLRQQRGHVEXWDOOGHVWLQDWLRQQRGHVDUHQRWQHFHVVDULO\QHLJKERUV
'HVWLQDWLRQQRGHVZLOODXWRPDWLFDOO\DSSHDULQWKHQRGHVWDEOHE\YLUWXHRIPRQLWRULQJWKHLUQRGHV
EURDGFDVWV$QHLJKERUQRGHZLOODXWRPDWLFDOO\EHOLVWHGLQWKHQRGHVWDEOHDQGURXWHVWDEOH1HLJKERU
QRGHEURDGFDVWVDOVRFRQWDLQLQIRUPDWLRQDERXWRWKHUQRGHVWKDWWKH\FDQKHDU7KHVHGLVWDQWQRGHV
ZLOODOVREHOLVWHGLQ\RXUQRGHVWDEOHLIWKH\SDVVWKHFULWHULDIRUEHLQJOLVWHGE\WKHVHWWLQJRIWKH
0,148$/FRPPDQGDQGLIWKHUHLVVXIILFLHQWURRPIRUWKHPWREHOLVWHGDVVHWE\WKH1(7'(67
FRPPDQG
.1HW6<623FRPPDQGV
6<623FRPPDQGV
$''12'(>DOLDV@FDOOSRUWQHLJKERU>9,$GLJL>GLJL@@TXDOLW\>REVFHQW@
$GGVWKHVSHFLILHGQHZGHVWLQDWLRQQRGHRUPRGLILHVWKHHQWU\RIDQH[LVWLQJGHVWLQDWLRQQRGHLQWKH
QRGHVWDEOH,IWKHRSWLRQDOREVFHQW2EVROHVFHQVH&RXQWLVVHWWR]HURWKHQRGHZLOOEH
SHUPDQHQWO\OLVWHGLQWKHQRGHVWDEOHDQGZLOOQRWEHXSGDWHGRUGURSSHGIURPWKHQRGHVWDEOHE\WKH
.1HWDXWRURXWLQJORJLF,IWKHQHLJKERUQRGHFDOOVLJQHQWHUHGLVQRWLQWKHQHLJKERUURXWHVWDEOHLWLV
DGGHGZLWKWKHGHIDXOWTXDOLW\IRUWKHVSHFLILHGSRUW$VORQJDV0,148$/LVHTXDOWRRUOHVVWKDQ
48$/,7<GHVWLQDWLRQQRGHVQHLJKERUQRGHVDVZHOODVGLVWDQWQRGHVZLOOEHDGGHGDXWRPDWLFDOO\WR
\RXUQRGHVWDEOHDVQHLJKERUQRGHEURDGFDVWVDUHUHFHLYHG
([DPSOH$''12'(.6/$:1‘.1.&‘.21
.1HWQRGHUHVSRQGV12'($''(':,7+1(:5287(
$''5287(SRUWFDOO>YLDGLJL>GLJL@@TXDOLW\>@
$GGVRUPRGLILHVWKHVSHFLILHG1(7&$//RIDQHLJKERUQRGHLQWKHURXWHVWDEOH,IWKHRSWLRQDOLV
LQFOXGHGWKHURXWHHQWU\LVHLWKHUORFNHGLIXQORFNHGRUXQORFNHGLIORFNHGLHWRJJOH$QH[LVWLQJ
ORFNHGURXWHGRHVQRWKDYHWREHXQORFNHGEHIRUHLWFDQEHPRGLILHG/RFNLQJDQHLJKERU
VURXWHLV
XVHGWRDVVXUHWKDWDQDVVLJQHGTXDOLW\ZLOODOZD\VH[LVWIRUWKDWQHLJKERU7KHORFNHGTXDOLW\ZLOODOVR
EHXVHGLQWKHDXWRPDWLFTXDOLW\FRPSXWDWLRQRIRWKHUGLVWDQWQRGHVFRQWDLQHGLQWKLVQHLJKERU
VQRGH
EURDGFDVWVWRGHWHUPLQHLIWKH\VKRXOGDOVREHDGGHGWR\RXUQRGHVWDEOH,QWKHHYHQWWKDWWKLVORFNHG
QHLJKERUGLVDSSHDUVIURPWKHQHWZRUNIRUZKDWHYHUUHDVRQDQGWKHQUHWXUQVLWZLOODXWRPDWLFDOO\EH
DVVLJQHGWKHORFNHGTXDOLW\'XULQJWKHWLPHWKDWWKLVQHLJKERULVDEVHQWLWDQGGLVWDQWQRGHV
DVVRFLDWHGZLWKWKLVQHLJKERUPD\HYHQWXDOO\EHUHPRYHGIURPWKHQRGHVWDEOHHYHQLIWKHURXWHLV
ORFNHGEHFDXVHWKHREVROHVFHQFHFRXQWIRUWKLVQHLJKERUQRGHFRXOGGURSWR]HUR,IWKLVQHLJKERU
V
URXWHLVORFNHGLWZLOOVWLOOEHOLVWHGLQWKHURXWHVWDEOHEXWZLWKD]HURFRXQWIRUGHVWLQDWLRQQRGHV
XVLQJWKDWURXWH
(;$03/(±HQWHULQJWKHFRPPDQG$''5RXWH:'(05
.1HWUHVSRQGV5RXWHDGGHGDQGORFNHG
7KLVDGGVWKHURXWHWRWKH:'(05OQRGHWRWKHURXWHVWDEOHLQWKH.1HWQRGH7KHURXWHLVORFNHG
LQDQGDVVLJQHGWRSRUWZLWKDTXDOLW\RI
/RFNLQJDURXWHDVVLJQVDIL[HGTXDOLW\WRDQHLJKERUQRGH7KLVFDQDVVXUHWKDWDQ\FRQQHFWVWRD
GLVWDQWQRGHXVLQJWKLVQHLJKERUQRGHDVDURXWHZLOOWDNHWKHKDUGFRGHGURXWHHYHQLIWKHURXWH
DXWRPDWLFDOO\JHQHUDWHGE\WKH.1HWQRGHLVGLIIHUHQWVXFKDVPD\RFFXUGXULQJEDQGRSHQLQJV
&4%&>21_2))21_2))@
'HIDOXW2121
:KHQVHWWR21IRUHLWKHURUERWKUDGLRSRUWVDOORZVXVHUVWRVHQG&4EURDGFDVWVIURPWKHQRGH
&7(;7>WH[W@XSWRFKDUDFWHUV
7KHFRQQHFWPHVVDJHWH[WVHQWWRVWDWLRQVXSRQFRQQHFWLQJWRWKH1(7$/,$6FDOOVLJQEXWQRWZKHQ
FRQQHFWLQJWRWKH1(7&$//&DQEHFOHDUHGE\HQWHULQJ&7(;7
'(/12'(>DOLDV@FDOOSRUWQHLJKERU>YLDGLJL>GLJL@@
'HOHWHVWKHVSHFLILHGGHVWLQDWLRQQRGHIURPWKHQRGHVWDEOH7KHHQWU\PXVWPDWFKWKHFXUUHQWHQWU\LQ
WKHOLVWH[DFWO\RUWKHQRGHZLOOQRWEHGHOHWHG
'(/5287(SRUWFDOO>YLDGLJL>GLJL@@TXDOLW\
'HOHWHVWKHVSHFLILHGQHLJKERUQRGHIURPWKHURXWHVWDEOH7KHHQWU\PXVWPDWFKWKHFXUUHQWHQWU\LQ
WKHOLVWH[DFWO\RUWKHQRGHZLOOQRWEHGHOHWHG$QHLJKERUQRGHFDQQRWEHGHOHWHGLIWKHUHDUHDQ\
RWKHUQRGHVLQWKHQRGHVWDEOHXVLQJWKLVQHLJKERUDVDURXWH
,1)2
>WH[W@XSWRFKDUDFWHUV
(QWHUVDQLQIRUPDWLRQPHVVDJHZKLFKLVXVXDOO\DGHVFULSWLRQRIWKHQRGHORFDWLRQRUDUHDRIFRYHUDJH
DQGRUHTXLSPHQWOLVW,WFDQEHFOHDUHGE\HQWHULQJ,1)2
,',17QQQ 'HIDXOW
6HWVWKHLQWHUYDOLQQXPEHURIPLQXWHVRIWKHQRGH,'EHDFRQIURPHDFKSRUWRIWKHQRGH7KLVLVQRW
DQRGHVEURDGFDVWMXVWDQ,'6HWWLQJHLWKHURUERWKQXPEHUVWR]HURWXUQVRIIWKH,'EHDFRQ
/77/ QQ ±
'HIDXOW
6HWVDOLPLWRQWKHPD[LPXPQXPEHURIWLPHVDSDFNHWRULJLQDWHGE\DQXSOLQNVWDWLRQQRUPDOO\DQ
HQGXVHUDWWKLVQRGHPD\EHWUDQVIHUUHGWKURXJKRWKHUQRGHV(DFKWLPHDPHVVDJHLVKDQGOHGE\D
QRGHWKHWLPHWROLYHIRUWKDWPHVVDJHLVGHFUHPHQWHG,IWKH/77/FRXQWHUUHDFKHV]HURWKH
PHVVDJHLVGLVFDUGHG,WLVSRVVLEOHIRUQHWZRUNQRGHVWRFUHDWHFLUFXODUSDWKVDQGWKHUHIRUHDOLPLWLV
UHTXLUHGWRSUHYHQWDSDFNHWIURPUHOD\LQJLQWKHQRGHV\VWHPIRUHYHU
/'(/$<QQ ±
'HIDXOW
6HWVWKHGHOD\WLPHLQQXPEHURIVHFRQGVDIWHUWKHQRGHKDVUHFHLYHGDOHYHOIUDPHIURPDQRWKHU
QRGHEHIRUHDQ$&.LVUHWXUQHG7KLVDOORZVDFRPELQHGSDFNHWRIWKH$&.DQGDQ\GDWDWKDWPD\
EHUHDG\WREHVHQWWRWKHVDPHGHVWLQDWLRQWREHVHQWWRJHWKHU7KXVVHQGLQJRQO\RQHIUDPHLQVWHDG
RIWZRRUPRUH
//,0,7QQ 'HIDXOW
6HWVD³QRDFWLYLW\´WLPHRXWWLPHULQQXPEHURIVHFRQGVRQDQRGHFURVVOLQN:KHQDXVHUFRQQHFWV
WRDQRWKHUQRGHWKHQRGHILUVWHVWDEOLVKHVDOHYHO$;FRQQHFWZLWKWKDWQRGHDQGWKHQ
HVWDEOLVKHVDOHYHOFLUFXLWRQEHKDOIRIWKHXVHU:KHQWKHXVHULVILQLVKHGWKHOHYHOFURVVOLQNLV
FORVHGEXWWKHOHYHOFRQQHFWLRQUHPDLQVXQWLOWKH//,07LVUHDFKHGDWZKLFKSRLQWLVWHUPLQDWHG
:KHQDXVHUGLVFRQQHFWVWKHOHYHOFRQQHFWLRQEHWZHHQWKHQRGHVUHPDLQVLQWDFWDQGWKH//,0,7
WLPHLVUHVWDUWHG7KLVGHFUHDVHVGDWDFRQJHVWLRQLIDQRWKHUFURVVOLQNUHTXHVWXVLQJWKHVDPHSDWK
RFFXUVEHIRUHWKH//,0,7H[SLUHVVLQFHWKHQRGHZLOOQRWKDYHWRUHHVWDEOLVKWKHOHYHOFRQQHFW
/1QQ ±
'HIDXOW
6HWVWKHQXPEHURIUHWULHVXVHGWRSDVV/HYHOGDWDEHWZHHQQRGHVLQWKHV\VWHP$IWHUWKH/1
FRXQWUHDFKHV]HURDOWHUQDWHSDWKVZLOOEHWULHG
/7QQ ±
'HIDXOW
6HWVWKHWLPHLQQXPEHURIVHFRQGVWKDWWKHRULJLQDWLQJQRGHZLOOZDLWEHIRUHUHVHQGLQJDOHYHOGDWD
SDFNHWLIQRDFNQRZOHGJPHQWLVUHFHLYHGIURPWKHGHVWLQDWLRQQRGHHQGWRHQGLQIR$&.,IVHWWR
VPDOOPXOWLSOHFRSLHVRIWKHVDPHSDFNHWFDQH[LVWZLWKLQWKHQRGHV\VWHPHYHQLIWKHILUVWSDFNHWZDV
UHFHLYHGFRUUHFWO\
/:,1'2:QQ ±
'HIDXOW
6HWVWKHPD[LPXPQXPEHURIRXWVWDQGLQJIUDPHVWKDWPD\H[LVWLQWKHQHWZRUNIRUDJLYHQFLUFXLW
:KHQWKHQRGHKDV/:,1'2:XQDFNQRZOHGJHGIUDPHVLWZLOOQRWWUDQVPLWDQ\PRUHIUHDPHVXQWLO
DOHYHOLQIR$&.LVUHFHLYHG1HWZRUNQRGHVPD\DOORZXSWRRXWVWDQGLQJIUDPHVDFURVVWKH
V\VWHP7KH/:,1'2:VL]HLVQHJRWLDWHGEHWZHHQQRGHVZKHQDFURVVOLQNLVUHTXHVWHGWKHUHIRUHLWV
VL]HVKRXOGEHVWDQGDUGL]HGQHWZRUNZLGH
0,148$/QQ ±
'HIDXOW
6HWVWKHPLQLPXPTXDOLW\UHTXLUHGWRDGGDGHVWLQDWLRQQRGHWRWKHQRGHVWDEOH
12'(6,17QQ ±
'HIDXOW
6HWVWKHWLPHLQWHUYDOLQQXPEHURIPLQXWHVEHWZHHQQRGHEURDGFDVWV,WVKRXOGEHVHWWRDQDJUHHGRQ
LQWHUYDOWKHVDPHDVDOOQRGHVLQWKHQHWZRUNV\VWHP
2%6,1,7QQ ±
'HIDXOW
6HWVWKHLQLWLDOREVROHVFHQFHYDOXHWKDWLVDVVLJQHGWRGHVWLQDWLRQQRGHV:KHQDQRGHVEURDGFDVWLV
WUDQVPLWWHGWKHREVROHVFHQFHYDOXHIRUHDFKOLVWHGGHVWLQDWLRQQRGHLVGHFUHDVHGE\RQH:KHQDQRGH
LVOLVWHGLQDQRGHVEURDGFDVWKHDUGIURPDQRWKHUQRGHWKHREVROHVFHQFHYDOXHIRUWKDWQRGHLV
LQFUHDVHGE\RQH,IWKHREVROHVFHQFHYDOXHIRUDOLVWHGGHVWLQDWLRQQRGHGURSVEHORZWKH2%60,1
OLPLWWKDWQRGHZLOOQRWEHLQFOXGHGLQQRGHVEURDGFDVWV,IWKHYDOXHGURSVWR]HURWKHQRGHZLOOEH
UHPRYHGIURPWKHQRGHVWDEOHXQOHVVLWKDGEHHQDGGHGE\$''12'(WRWKHQRGHVWDEOHZLWKDQ
REVROHVFHQFHYDOXHRI]HUR
2%60,1QQ ±
'HIDXOW
6HWVWKHPLQLPXPREVROHVFHQFHYDOXHZKLFKZLOODOORZDGHVWLQDWLRQQRGHWREHLQFOXGHGLQQRGHV
EURDGFDVWV
48$/,7<QQQQ ±
'HIDXOW
6HWVWKHTXDOLW\DVVLJQHGWRQHLJKERUQRGHVZKHQWKHLUQRGHVEURDGFDVWVDUHKHDUGRQHDFKSRUW7KH
ILUVWQXPEHULVIRUQRGHVEURDGFDVWVKHDUGWKRXJKWKH$8;SRUWZKHQLWLVFRQQHFWHGGLUHFWO\WR
DQRWKHU71&DQGFRPPXQLFDWLQJLQ1(7520PRGH1%$8'!7KHVHFRQGQXPEHULVIRUQRGHV
EURDGFDVWVKHDUGWKURXJKSRUWDQGWKHWKLUGQXPEHULVIRUSRUW
.1HW86(5FRPPDQGV
%<(
&DXVHVWKHQRGHWRGLVFRQQHFWIURPWKHXVHUWKDWLVVXHGWKHFRPPDQG
%%6
>6@
&DXVHVDQLQWHUQDOFRQQHFWWRWKH3%%6LQWKLV71&:KHQWKH6RSWLRQLVLQFOXGHGZLOOUHPDLQ
FRQQHFWHGWRWKHQRGHDIWHUH[LWLQJWKH3%%6
&211(&7>>SRUW@FDOO_DOLDV>6@@
&RPPDQGVWKHQRGHWRFRQQHFWWRDQRWKHUQRGHRUHQGXVHU:KHQWKH6RSWLRQLVLQFOXGHGZLOO
UHPDLQFRQQHFWHGWRWKHQRGHDIWHUGLVFRQQHFWLQJWKHFXUUHQWOLQN
&4
>8,WH[W@
&RPPDQGVWKHQRGHWREURDGFDVWWKHVSHFLILHGWH[W
',63/$<
'LVSOD\VDOLVWRIFXUUHQWQRGHSDUDPHWHUVHWWLQJV
+(/3
:KHQHQWHUHGDORQHGLVSOD\VDOLVWRIDOOFRPPDQGVDYDLODEOHWRWKHFRQQHFWHGXVHU:KHQHQWHUHG
IROORZHGE\WKHQDPHRIDVSHFLILFFRPPDQGZLOOGLVSOD\DVKRUWGHVFULSWLRQRIWKDWFRPPDQG
(QWHULQJ+(/3+(/3ZLOOGLVSOD\VKRUWGHVFULSWLRQVRIDOODYDLODEOHFRPPDQGV
,1)2
'LVSOD\VWKHLQIRUPDWLRQPHVVDJHWKDWZDVHQWHUHGE\WKH6<623,WLVXVXDOO\DGHVFULSWLRQRIWKH
QRGHORFDWLRQRUDUHDRIFRYHUDJHDQGRUHTXLSPHQWOLVW
/,1.6
'LVSOD\VDOLVWRIFXUUHQW$;OLQNVH[LVWLQJLQWKHQRGHLQFOXGLQJWKHFDOOVLJQVRIWKHOLQNHG
VWDWLRQVWKH$;67$7(WKHSRUWQXPEHUWKH7<3(RIOLQNDQGWKH$;YHUVLRQ
7KH$;67$7(VDUHIRU',6&211(&7('IRU&211(&7,1352*5(66IRU)505
&21',7,21'(7(&7('IRU',6&211(&7$77(037,1352*5(66IRU&211(&7('
IRU:$,7,1*$&.12:/('*(0(17IRU'(9,&(%86<IRU5(027('(9,&(%86<
IRU%27+'(9,&(6%86<IRU:$,7,1*$&.12:/('*(0(17DQG'(9,&(%86<
IRU:$,7,1*$&.12:/('*(0(17DQG5(027('(9,&(%86<DQGIRU:$,7,1*
$&.12:/('*(0(17DQG%27+'(9,&(6%86<
7KH7<3(VRIOLQNVDUH8IRU83/,1.'IRU'2:1/,1.RU;IRU&5266/,1.
0+($5'>/21*_6+257@
'LVSOD\VOLVWRIFDOOVLJQVUHFHQWO\KHDUGRQHDFKUDGLRSRUWRIWKHQRGH,QFOXGLQJWKH/21*RSWLRQ
ZLOODOVRLQFOXGHWKHGHVWLQDWLRQFDOOVLJQVDQGDQ\GLJLSHDWHUVXVHGDQGWKHWLPHVWDPS
12'(6>^_DOLDV_FDOO`@
'LVSOD\VWKHOLVWRIDOONQRZQGHVWLQDWLRQQRGHV7KHOLVWLQFOXGHVWKH$/,$6DQG&$//6,*1RIHDFK
QRGH,IWKHRSWLRQDOLVLQFOXGHGZLWKWKHFRPPDQGKLGGHQQRGHVDUHDOVRVKRZQDQGDUHPDUNHG
ZLWK(QWHULQJWKHFRPPDQGDQGDQGVSHFLI\LQJDQRGHDOLDVRUFDOOVLJQZLOOGLVSOD\XSWRWKUHH
SRVVLEOHURXWHVQHLJKERUQRGHVRIGHVFHQGLQJTXDOLW\WKDWZLOOEHXVHGWRHVWDEOLVKDOLQNZLWKD
VSHFLILHGGHVWLQDWLRQ
32576
'LVSOD\VWHVWPHVVDJHVDERXWWKHUDGLRSRUWVWKDWZHUHHQWHUHGE\WKHV\VRS
5287(6
'LVSOD\VDOLVWRIQHLJKERUQRGHVLQFOXGLQJUDGLRSRUWQXPEHUQRGHFDOOVLJQTXDOLW\YDOXHWKH
QXPEHURIGHVWLQDWLRQQRGHVLIWKHURXWHLVLQXVHDQGLIWKHURXWHKDVEHHQORFNHGLQE\WKHV\VRS
67$76
'LVSOD\VDVXPPDU\RIVWDWLVWLFVFRQFHUQLQJOHYHODQGOHYHODFWLYLW\RQWKLVQRGH
6<623
&RPPDQGWRUHTXHVW6<623DFFHVVWRWKHQRGH8VHUPXVWUHVSRQGWRWKHSDVVZRUGTXHU\XVLQJWKH
SDVVZRUGFKDUDFWHUVGHILQHGE\57(;76HHWKHUHPRWHDFFHVVVHFWLRQ
86(56
'LVSOD\VDOLVWRIXVHUVFXUUHQWO\FRQQHFWHGWRQRGHWKHQXPEHURIEXIIHUVFXUUHQWO\DYDLODEOHXSOLQNV
GRZQOLQNVDQGFURVVOLQNV
1RGH6WDFNLQJ
0RUHUDGLRSRUWVFDQEHDGGHGWRWKLVQHWZRUNQRGH7KHDGGHG71&PXVWEHVHWWRFRPPXQLFDWH
WKURXJKLWVVHULDOSRUWLQ1HWURPPRGHDWWKHVDPHEDXGUDWH7KH.$0 ;/ FRPPXQLFDWHVLQ
1HWURPPRGHWKURXJKLWV$8;SRUW7KH1HWURPLQWHUIDFHPRGHLVDFWLYDWHGE\VHWWLQJWKH71&
FRPPDQG1%$8'WRDEDXGUDWHPDWFKLQJWKHVHULDOSRUWEDXGRIWKHRWKHU71&
:KHQFRQQHFWLQJWRMXVWRQHRWKHU71&DVWDQGDUGVHULDOFDEOHLVDOOWKDWLVQHHGHG:KHQFRQQHFWLQJ
WRDQRGHVWDFNDGLRGHPDWUL[LVUHTXLUHG
127(1%$8'DQG*363257FDQQRWERWKEHHQDEOHGDWWKHVDPHWLPH7KH$8;SRUWRIWKH
.$0 ;/ FDQEHXVHGIRURQO\RQHIXQFWLRQDWDWLPH$WWHPSWVWRHQDEOHERWKIXQFWLRQVDWWKHVDPH
WLPHZLOOUHWXUQDQHUURUPHVVDJH
*3610($,QWHUIDFLQJ
7KH.$0 ;/ FDQEHLQWHUIDFHGZLWKD*36GHYLFHWKDWSURYLGHVGDWDLQWKH1(0$LQWHUIDFH
VWDQGDUG,WKDVDFRPSOHWHVHWRIFRPPDQGVWRFRQILJXUHDQGFRQWUROXQSURWRSDWKUHWUDQVPLVVLRQVRI
WKH1(0$VWULQJVDQGFDQSURYLGH5$0VWRUDJHIRUORFDWLRQPHVVDJHVVWULQJVIRUODWHUUHWULHYDO
2YHUYLHZ
7KH86'HSDUWPHQWRI'HIHQVHWRSURYLGHZRUOGZLGHSRVLWLRQLQJDQGQDYLJDWLRQDOLQIRUPDWLRQIRU
86PLOLWDU\IRUFHVGHYHORSHGWKH*OREDO3RVLWLRQLQJ6\VWHP*36LQLWLDOO\IRUPLOLWDU\XVH6LQFH
WKHQDEURDGUDQJHRIFRPPHUFLDOFLYLOLDQDQGDPDWHXUUDGLRDSSOLFDWLRQVKDVEHHQGHYHORSHGEDVHG
RQWKH*36
7KH*36FRQVLVWVRIVDWHOOLWHVHDFKRIZKLFKWUDQVPLWVSRVLWLRQLQJLQIRUPDWLRQFRQWLQXRXVO\*36
UHFHLYLQJXQLWVGHYLFHVWKDWFRQWDLQDUHFHLYHU/&'GLVSOD\DQGXVXDOO\DGDWDSRUWFROOHFWWKLV
SRVLWLRQDOLQIRUPDWLRQDQGXVHLWWRFRPSXWHSRVLWLRQ7KLVLQIRUPDWLRQFDQWKHQEHUHWUDQVPLWWHGE\
DQ\PHDQVSRVVLEOHWRUHSRUWWKHSRVLWLRQRIWKH*36GHYLFHDQGLWVYHKLFOH
0RVW*36XQLWVVROGWRGD\DUH10($FRPSDWLEOH7KDWPHDQVWKDWQRWRQO\FDQWKH\GLVSOD\ODWLWXGH
ORQJLWXGHDQGWLPHRQDQ/&'VFUHHQEXWWKDWLQIRUPDWLRQFDQEHRXWSXWWKURXJKDQ56RU
FRPSDWLEOHSRUW7KLVSRUWFDQWKHQEHFRQQHFWHGWRWKHVHULDOSRUWRIDFRPSXWHURU71&
7KH*36SRVLWLRQLQIRUPDWLRQLVSUHVHQWHGLQDVSHFLDOIRUPDWRIVHQWHQFHVRI$6&,,FKDUDFWHUVDV
VSHFLILHGE\DSURWRFROFDOOHG10($$QXPEHURIWKHVHVHQWHQFHVDUHDYDLODEOHZLWKYDU\LQJ
NLQGVRILQIRUPDWLRQEXWWKHRQHVXVHGPRVWRIWHQIRUDPDWHXUUDGLRDFWLYLWLHVDUH*3**$DQG
*350&7KHVHVHQWHQFHVFRQWDLQLQIRUPDWLRQVXFKDVODWLWXGHORQJLWXGHDOWLWXGHDQGWLPHLQ87&
GHULYHGIURPWKHVDWHOOLWHFORFNV7KH71&LQ*360RGHFDQFDSWXUHWKLVGDWDDQGVWRUHLWLQD
EXIIHUDQGUHWUDQVPLWLWLQEHDFRQVDQGRUUHFRUGWKHPLQDODUJHWUDFNLQJEXIIHUIRUODWHUUHWULHYDO
7KH71&ZKLOHLQ*360RGHFDQDOVRXSGDWHLWVLQWHUQDOGDWHWLPHFORFNWR87&GHULYHGIURPWKH
VDWHOOLWHV
*36(TXLSPHQW5HTXLUHPHQWV
7RVHWXSDSDFNHW*36VWDWLRQWREHDFRQ*36GDWDIRUPRELOHSRVLWLRQUHSRUWLQJWKHIROORZLQJ
HTXLSPHQWZRXOGEHQHHGHG
$WUDQVFHLYHUDQGDQWHQQD
7KH.$0 ;/
$*36XQLWZLWKDQDWWDFKHGRUH[WHUQDODQWHQQDWKHKDVDQ56RUFRPSDWLEOHGDWDRXWSXWLQ
10($IRUPDWZLWKDFDEOHWRFRQQHFWWRDQRWKHUGHYLFH
&DEOLQJD*368QLWWRWKH.$0;/
7KH10($VWDQGDUGVSHFLILHVWKDWWKHVLJQDOVLQWKH*36UHFHLYHUGDWDSRUWIROORZWKH(,$
VWDQGDUG
7HFKQLFDOQRWH 0DQ\*36YHQGRUVVLPSO\XVH77/YROWDJHOHYHOVYROWVDQGYROWVEXWXVH
WKHVDPHSRODULW\DV56VLJQDOV7KHVHXQLWVDUHFDSDEOHRIVXSSO\LQJSURSHULQSXWWRWKH$8;
SRUWRIWKH.$0 ;/+RZHYHUVRPH*36YHQGRUVLQYHUWWKHVHQVHRIWKLVVLJQDOWUXH77/DQGWKHVH
XQLWVZLOOQRWGLUHFWO\LQWHUIDFHZLWKDQ56SRUW
:DUQLQJ 7KH.$0 ;/ VHULDOSRUWVXVH56YROWDJHVZKLFKDUHDQGDSSUR[LPDWHO\YROWV
&KHFNWKH*36GHYLFHPDQXDOEHIRUHDWWHPSWLQJWRFRQQHFWLWDQRWKHUGHYLFH,ILWLQFOXGHVDFDEOH
DQGRULQGLFDWHVWKDWLWFDQEHFRQQHFWHGGLUHFWO\WRWKHFRPSXWHUVVHULDOSRUWLWFDQEHFRQQHFWHG
GLUHFWO\WRWKH$8;SRUWRIWKH.$0 ;/ ZLWKWKHVDPHFDEOH.DQWURQLFVLVQRWUHVSRQVLEOHIRU
GDPDJHWRWKH71&E\LQFRUUHFWFRQQHFWLRQVWRRWKHUGHYLFHVRUFRQQHFWLRQWRLQFRPSDWLEOHGHYLFHV
7RFRQQHFWWKHGDWDSRUWRID*36XQLWWRWKH.$0 ;/DFDEOHZLWKDWOHDVWWZRZLUHVLVUHTXLUHG$
VKLHOGHGFDEOHLVSUHIHUUHG5HIHUWRWKH*36PDQXDOWRGHWHUPLQHZKLFKSLQVDUHXVHGIRUVLJQDO
JURXQGDQGGDWDRXWSXW,IWKH*36GHYLFHUHTXLUHVDQLQLWLDOL]DWLRQVWULQJLQSXWDWKLUGZLUHIRUGDWD
LQSXWWRWKH*36ZRXOGDOVREHQHHGHG
&RQQHFWWKHVLJQDOJURXQGZLUHRIWKH*36GDWDSRUWWRSLQRIWKH.$0 ;/ $8;SRUW7KLVZLUH
PD\EHLGHQWLILHGDV10($E\VRPH*36YHQGRUV
&RQQHFWWKHGDWDRXWSXWRIWKH*36GDWDSRUWWRSLQRIWKH71&VHULDOSRUW7KHGDWDRXWSXWSLQPD\
EHLGHQWLILHGDV10($E\VRPH*36YHQGRUV7KLVOLQHVXSSOLHVWKH*3610($VHQWHQFHVWRWKH
71&
6RPH*36XQLWVPD\KDYHDGDWDLQSXWWRDOORZIRUFRQILJXULQJWKHLUGDWDRXWSXW,IVRWKLVLV
DFFRPSOLVKHGE\SDVVLQJFRPPDQGVWRWKH*36XQLWIURPDWHUPLQDORU71&YLDDQDGGLWLRQDOZLUHLQ
WKHGDWDFDEOH,IWKLVLVWKHFDVHFRQQHFWWKHWKLUGZLUHRIWKHGDWDFDEOHIURPWKHLQSXWGDWDSLQRIWKH
*36GDWDSRUWWRSLQRIWKH$8;SRUW$JDLQFRQVXOWWKH*36PDQXDOIRUWKHQDPHRIWKLVSLQDV
SLQQDPHVDQGIXQFWLRQVYDU\E\YHQGRU$OVRPDNHVXUHWKLVSLQZLOODFFHSWDQ56VLJQDODQG
YROWDJHV
0RVW*36GHYLFHVWKDWKDYHDGDWDRXWSXWKDYHDGHIDXOWFRQILJXUDWLRQZLWKVWDQGDUGW\SHRXWSXW
VHQWHQFHV7KH\PD\QHYHUQHHGDQ\GDWDLQSXWRUFRQILJXUDWLRQ,QWKLVFDVHDWZRZLUHFDEOHLV
VXIILFLHQWWRFRQQHFWWKHPWRWKH.$0 ;/
&RQILJXULQJWKH*36&RPPDQGV
6HYHUDOFRPPDQGVDUHXVHGWRFRQILJXUHWKH.$0 ;/ WRFDSWXUHDQGEHDFRQRUVWRUH*36GDWD
*36+($' VHOHFWVWKH*36VWULQJRUXSWRIRXUGLIIHUHQWVWULQJVWREHFDSWXUHGDQGVWRUHGLQWKH
/RFDWLRQ7H[W/7EXIIHUV7KHHQWU\LVFDVHVHQVLWLYHVREHVXUHWRHQWHUWKHVHQWHQFHKHDGHULQWKH
FRUUHFWFDVH0RVWLIQRWDOO10($VHQWHQFHKHDGHUVDUHLQ&$3,7$/OHWWHUV7KH*36+($'IRU/7
EXIIHULVVHWWR*3**$E\GHIDXOW7RFRQILJXUHEXIIHUWRVWRUHWKHVHQWHQFHEHJLQQLQJZLWK
*350&IRUH[DPSOHHQWHUWKHFRPPDQGDV*36+($'*350&
%/7 VHWVWKHEHDFRQLQWHUYDOUDWHVIRUHDFKRIWKHIRXU/7EXIIHUV7REHDFRQ/7EXIIHUDWHYHU\
PLQXWHLQWHUYDOHQWHUWKHFRPPDQGDV%/7(7RFOHDUWKHEXIIHUHYHU\WLPHLWKDVEHHQ
EHDFRQHGVRWKDWROGQRQXSGDWHGGDWDLVQRWWUDQVPLWWHGPRUHWKDQRQFHLQFOXGHWKHRSWLRQDO
SDUDPHWHU&/($5DIWHUWKHWLPHLQWHUYDO,IERWKSRUWVRIWKH.$0 ;/ KDYHEHHQHQDEOHGDQGDUH
FXUUHQWO\LQ3DFNHWPRGHWKH/7EXIIHUVFDQEHEHDFRQHGIURPHLWKHURQHRUERWKUDGLRSRUWVDQGDW
GLIIHUHQWLQWHUYDOVLIGHVLUHG
/73 VHWVWKHGLJLSHDWHUSDWKVIRUHDFKRIWKH/7EXIIHUV0DQ\GLJLSHDWHUVWKDWUHWUDQVPLW8,W\SH
SDFNHWVWRRWKHU$356PRQLWRULQJVWDWLRQVXVHFDOOVLJQVVXFKDV5(/$<RU:,'(7RVHW/7EXIIHU
WREHUHWUDQVPLWWHGE\DQ\:,'(GLJLSHDWHUHQWHUWKHFRPPDQGDV/73$3569,$:,'(
*363257 HQDEOHVWKH$8;SRUWIRU*36GDWDLQSXWDQGRXWSXWDWWKHVSHFLILHGEDXGUDWH0DQ\
*36GHYLFHVKDYHDGDWDRXWSXWEDXGUDWHRI
/75$&. DOORFDWHV71&PHPRU\IRUD*36GDWDVWRUDJHEXIIHU$Q\RQHRUXSWRDOOIRXU/7EXIIHUV
FDQEHVWRUHGIRUODWHUUHWULHYDO7KH/75$&.EXIIHULVWKHQDFFHVVHGWKURXJKFRQQHFWLRQWRWKH
3%%6,IPRUHPHPRU\LVGHVLUHGIRUDODUJHU/75$&.EXIIHURUIRURWKHUIXQFWLRQVWKH3%%6VL]H
FDQEHGHFUHDVHG%XWLWWKH3%%6PXVWUHPDLQHQDEOHGZLWKDWOHDVW.RIPHPRU\DOORFDWHGWRLWVR
WKDWWKH/75$&.EXIIHUFDQEHDFFHVVHG
,IWKH*36+($'VWULQJIRUDQ\/7EXIIHULVHPSW\WKDW/7EXIIHUFDQEHVHWXSDVDQDX[LOLDU\
EHDFRQPDQXDOO\HQWHULQJWH[WLQWKHWKDWEXIIHUDQGVHWWLQJ%/7DQG/73WREHDFRQWKDWWH[WDWWKH
VSHFLILHGLQWHUYDOYLDWKHGHVLJQDWHGSDWK
*36'HYLFH,QLWLDOL]DWLRQIURPWKH71&
6RPH*36UHFHLYHUVUHTXLUHLQSXWRIDVSHFLDOVWULQJRIFKDUDFWHUVIRULQLWLDOL]DWLRQEHIRUHWKH\ZLOO
RXWSXWDQ\LQIRUPDWLRQ7KH71&FDQEHFRQILJXUHGWRVHQGWKHLQLWLDOL]DWLRQVWULQJWRWKH*36XQLWE\
HQWHULQJWKHUHTXLUHGVWULQJXVLQJWKH*36,1,7FRPPDQG)RULQVWDQFHLIWKH*36UHFHLYHUUHTXLUHV
WKHLQLWLDOL]DWLRQVWULQJ3*502*3**$WKHFRPPDQGZRXOGEHHQWHUHGDV
*36,1,73*502*3**$
8SRQSRZHUXSRIWKH71&RUDIWHUDVRIWUHVHWKDVEHHQSHUIRUPHGWKDWVWULQJLVRXWSXWIURPLWV
$8;SRUWWRWKH*36XQLW
2WKHU*36)HDWXUHV
6ORWWHG%HDFRQV
7KH%/7FRPPDQGSURYLGHVIRUWKHDELOLW\WRVSHFLI\QRWRQO\WKHLQWHUYDOEHWZHHQEHDFRQVEXWDOVRD
VWDUWLQJWLPHIRUWKHEHDFRQV7KLVSHUPLWVDVORWWHGV\VWHPRIEHDFRQVE\QXPHURXVVWDWLRQV)RU
LQVWDQFHLIWKHORFDODUHDKDVVWDWLRQVWKDWHDFKVKRXOGEHDFRQWKHLUORFDWLRQHYHU\PLQXWHV$
EHDFRQZRXOGEHWUDQVPLWWHGHYHU\QPLQXWHVIURPWKHWLPHWKHXVHUVHWVWKHWLPHWKDWWKHEHDFRQ
VKRXOGEHWUDQVPLWWHG$VDQH[DPSOHLI%/7KDVEHHQVHWDV
%/7(9(5<67$57
7KHEHDFRQZRXOGQRWVWDUWWUDQVPLWWLQJXQWLODIWHUPLGQLJKWDQGWKHQHYHU\PLQXWHVDIWHU
WKDW$VHFRQGXVHUFRXOGVHWWKH%/7ZLWKWKHFRPPDQG
%/7(9(5<67$57
,QWKLVFDVHWKHVHWZRXVHUVEHDFRQVZRXOGQHYHUEHWUDQVPLWWHUDWWKHVDPHWLPHEXWZRXOGEHDFRQ
PLQXWHDSDUW8VLQJWKLVV\VWHPDVDQH[DPSOHLWZRXOGEHSRVVLEOHWRVHWDOOWKLUW\XVHUVWREHDFRQ
RQHPLQXWHDSDUWDYRLGLQJFROOLVLRQV
7UDFNLQJ:LWKRXW%HDFRQV
7RFRQILJXUHWKH71&WRRQO\VWRUHWKH/7EHDFRQVLQWKH/75$&.EXIIHUZLWKRXWWUDQVPLWWLQJWKHP
VHWWKH/73WR121(IRUWKHDVVRFLDWHG/7EXIIHU$VLQ
/73121(
:KHQWKHGHVWLQDWLRQFDOOSDWKLVVHWWR121(WKH71&ZLOOQRWWUDQVPLWWKHEHDFRQEXWVLQFHWKH
%/7FRPPDQGLVVWLOODFWLYHWKHGDWDZLOOEHVWRUHGLQWKH/75$&.EXIIHUDWWKH%/7VSHFLILHG
LQWHUYDO
5HPRWH$FFHVVDQG*36
:KHQFRQQHFWHGUHPRWHO\WRWKH71&WKURXJKLWV0<5(027(FDOOVLJQDQGKDYHSURSHUO\
UHVSRQGHGWRWKHSDVVZRUGVHFXULW\FKHFNDQ\SDUDPHWHUVFDQEHFKDQJHGLQFOXGLQJWKH*36
SDUDPHWHUV
,IWKH*363257FRPPDQGKDVEHHQHQDEOHGE\VHWWLQJLWWRDEDXGUDWHJUHDWHUWKDQ]HURWH[WFDQ
VHQWRXWWKURXJKWKH$8;SRUWDWLWVFRQILJXUHGEDXGUDWHE\VHQGLQJWKH535,17FRPPDQG
)RUH[DPSOHWRVHQGWKHFRQILJXUDWLRQVWULQJ³3*502*3*6$´WRD*36XQLWWKDWLVFRQQHFWHGWR
WKH$8;SRUWHQWHUWKHFRPPDQG
535,173*502*3*6$
7KLVUHTXLUHVWKDWWKH'$7$LQSXWWRWKH*36GHYLFHEHFRQQHFWHGWRWKHGDWDRXWSXWIURPWKH$8;
SRUW7KHVWULQJGRHVQRWLQIDFWKDYHWREHGHVWLQHGIRUD*36GHYLFH7KHGHYLFHDWWDFKHGWRWKH
$8;SRUWFRXOGEHDQ\W\SHRIGHYLFHWKDWDFFHSWV56LQSXW
2WKHU1RWHV
7KH/7EXIIHUV/7EHDFRQVDQG/75$&.EXIIHUFDQEHXVHGHYHQZLWKRXWD*36XQLWDWWDFKHG$Q\
WH[WFDQPDQXDOO\EHHQWHUHGLQWKH/7EXIIHUVXSWRFKDUDFWHUVWRWDOXVLQJWKH/7FRPPDQGDV
LQ
/77KLVLV/7H[WEXIIHUQXPEHU
7KH/7EXIIHUVZLOOEHWUDQVPLWWHGEDVHGRQWKH%/7DQG/73FRPPDQGVDQGVWRUHGDFFRUGLQJWRWKH
/75$&.FRPPDQGHYHQZKHQWKH71&*363257KDVQRWEHHQHQDEOHG
2WKHUWH[WFDQEHVSHFLILHGLQWKH*36+($'FRPPDQG,IWKHGDWDLQSXWWRWKH$8;SRUWLVLQWKH
VDPHIRUPDWDV10($GDWDWKDWEHJLQVZLWKDVSHFLILFFKDUDFWHURUZRUGDQGHQGVLQD&5/)
FDUULDJHUHWXUQOLQHIHHGVHTXHQFHLWFDQEHVWRUHGLQWKH/7EXIIHUV6RPHZHDWKHUVWDWLRQGHYLFHV
RSHUDWHLQWKLVPDQQHUWRUHSRUWZHDWKHULQIRUPDWLRQ
*36&RPPDQG6XPPDU\
7KHIROORZLQJ*36FRPPDQGVDUHOLVWHGKHUHIRUFRQYHQLHQFHDQGH[SODLQHGLQGHWDLOLQWKH&RPPDQG
5HIHUHQFHVHFWLRQ
%/7Q^(9(5<_$)7(5`KKPPVV>67$57KKPPVV@^(9(5<_$)7(5`KKPPVV
>67$57KKPPVV@Q 6HWVWKHLQWHUYDOEHWZHHQEHDFRQVIRUWKHDVVRFLDWHG/7VWULQJIRUHLWKHURUERWKUDGLRSRUWV
*36+($'QVWULQJQ XSWRFKDUV
'HWHUPLQHVZKLFK*3610($VHQWHQFHVZLOOEHVWRUHGLQWKH/7EXIIHUV
*36,1,7VWULQJXSWRFKDUDFWHUV
6SHFLILHVDWH[WVWULQJWKDWZLOOEHVHQWWRWKHDWWDFKHG*36XQLWXSRQSRZHUXS
/7QWH[WQ XSWRFKDUV
(QWHUVWKHVSHFLILHGWH[WLQWKHDVVRFLDWHG/7EXIIHU
/73QGHVW>YLDFDOO>FDOO@@GHVW>YLDFDOO>FDOO@@Q 6HWVWKHGHVWLQDWLRQFDOOVLJQDQGDQ\GLJLSHDWHUVWREHXVHGZKHQWUDQVPLWWLQJWKH/7EXIIHUV
/75$&.Q>/7@>/7@>/7@>/7@>6<623@>7,0(@
$OORFDWHVPHPRU\IRUDVSHFLDOWUDFNLQJEXIIHUXVHGWRVWRUH/7PHVVDJHV
535,17WH[WXSWRFKDUDFWHUV
7KLVLVDQLPPHGLDWHFRPPDQGZKLFKVHQGVWKHVSHFLILHGWH[WVWULQJIURPWKH$8;SRUWWRWKH
DWWDFKHGGHYLFHHJ*36XQLW
*36'HYLFH0DQXIDFWXUHVDQGYHQGRUV
*DUPLQ(VW6W2ODWKH.6
,&20$PHULFD,QFWK$YH1(%HOOHYXH:$
0DJHOODQ6\VWHPV&RUS2YHUODQG&W6DQ'LPDV&$
6RQ\(OHFWURQLFV,QF6RQ\'U3DUN5LGJH1-
7ULPEOH0RELOH&RPSXWLQJ3URGXFWV10DU\$YH32%R[
6XQQ\YDOH&$
$GYDQFHG*36$356'LJLSHDWLQJ
$FRPPRQJRDORIPRELOHSRVLWLRQUHSRUWLQJVWDWLRQVLVWRKDYHWKHLU8,SDFNHWVGLJLSHDWHGRYHUD
ZLGHDUHDRUORQJGLVWDQFHZKLOHPRYLQJWKRXJKDUHDVZKHUHWKHORFDOGLJLSHDWHUFDOOVLJQVPD\EH
XQNQRZQ$QHIIHFWLYHVROXWLRQIRUQRWNQRZLQJORFDOFDOOVLJQVLVWRHVWDEOLVKVWDQGDUGJHQHULF
FDOOVLJQVIRUGLJLSHDWLQJVWDWLRQVDQGWKHQXVHWKHVHQDPHVLQGLJLSHDWLQJSDWKV2IFRXUVHWKLV
UHTXLUHVWKHDFFHSWDQFHDQGXVHRIVWDQGDUGVIRUQDPLQJDQGXVLQJGLJLSHDWLQJVWDWLRQVE\ERWKWKH
SRVLWLRQUHSRUWLQJVWDWLRQVDQGWKHGLJLSHDWLQJVWDWLRQV
&RPPRQVWDQGDUGVKDYHEHHQHVWDEOLVKHGE\VRPHORFDO$356JURXSVWRXVHGLJLSHDWHUQDPHVVXFKDV
5(/$<:,'(75$&(DQG*$7(&KHFNZLWKDORFDO*36RU$356JURXSEHIRUHFRQILJXULQJWKH
71&ZLWKLWV8,GLJLSHDWHUFDSDELOLWLHV'LJLSHDWHUQDPLQJFRQYHQWLRQVDQGIUHTXHQF\XVDJHPD\
YDU\E\DUHD
,PSURYLQJ(IILFLHQFLHVRI$GYDQFHG'LJLSHDWLQJ
$VGHVFULEHGDERYHPRELOHORFDWLRQUHSRUWLQJVWDWLRQVXVHGLJLSHDWLQJSDWKVFRQWDLQLQJJHQHULF
GLJLSHDWLQJQDPHVHJ5(/$<:,'(75$&(WRH[WHQGWKHLUUDQJHRIUHSRUWLQJ8VLQJJHQHULF
GLJLSHDWLQJHQDEOHVDPRELOHVWDWLRQWRXVHWKHVDPHGLJLSHDWLQJSDWKDVLWPRYHVDURXQGVLQFHWKHUH
ZLOOSUHVXPDEO\DOZD\VEHQHDUE\*36$356GLJLSHDWLQJVWDWLRQVZLWKRQHRUPRUHRIWKHVHJHQHULF
QDPHVWRSLFNXSWUDQVPLVVLRQVRI8,SDFNHWVDQGUHWUDQVPLWWKHPWRDZLGHUDUHDRURQDGLIIHUHQW
UDGLRFKDQQHO
8VLQJJHQHULFDOO\QDPHGGLJLSHDWHUVGRHVUHVXOWLQZLGHUFRYHUDJHRI*36VWDWLRQVEXWVHYHUDO
LQHIILFLHQFLHVPD\DULVHIURPWKLVFRPPRQSUDFWLFHGHSHQGLQJXSRQWKHDYDLODELOLW\DQGQDPHVRIWKH
GLJLSHDWHUV
$PRQJWKHSUREOHPVWKDWPD\DULVHLQWKLVVLWXDWLRQDUH
8,SDFNHWVFDQEHUHSHDWHGPXFKPRUHWKDQQHFHVVDU\E\WKHVDPHRUE\GLIIHUHQWGLJLSHDWLQJ
VWDWLRQVZLWKWKHFDOOVLJQV5(/$<:,'(RU75$&(FORJJLQJXSWKHDLUZDYHVDQGWKDW
VHYHUDOVWDWLRQVPD\UHWUDQVPLWWKHVDPHSDFNHWDWWKHVDPHWLPHUHVXOWLQJLQDPXOWLSOH
WUDQVPLVVLRQVWKDWFDQQRWEHFRSLHGE\RWKHUVWDWLRQV
.DQWURQLFV
71&VKDYHDVXLWHRI8,GLJLSHDWLQJFRPPDQGVWKDWFDQEHXVHGWRGHDOZLWKLQHIILFLHQFLHV
WKDWFDQDULVHZKHQDQXPEHURIGLJLSHDWHUVXVLQJWKHVDPHJHQHULFQDPHVDUHORFDWHGLQWKHVDPH
DUHDDQGFDQWUDQVPLWDWWKHVDPHWLPH
2YHUYLHZRI8,'LJLSHDWLQJ&RPPDQGV
7KHIROORZLQJ8,GLJLSHDWLQJFRPPDQGVVXSSRUWDGYDQFHG*36$356GLJLSHDWLQJFDSDELOLWLHV
7KH8,',*,FRPPDQGPD\EHXVHGWRVHWXSWRIRXUDGGLWLRQDODOLDVHVFDOOVLJQVIRUVSHFLDO
GLJLSHDWLQJVHUYLFH7REHGLJLSHDWHGSDFNHWVUHFHLYHGFRQWDLQLQJRQHRIWKHVHDOLDVHVZLOOEHUHSHDWHG
RQFHZLWKWKHFDOOVLJQ0<&$//RIWKHGLJLSHDWHUVXEVWLWXWHGIRUWKHDOLDVLQWKHGLJLSHDWHGIUDPH
8,)/22'DQG8,75$&(DUHDELWPRUHH[RWLF(DFKSURYLGHVIRUPXOWLKRSGLJLSHDWLQJZLWKMXVWRQH
GLJLSHDWHUDGGUHVVSHUSDFNHWWKHUHE\NHHSLQJWKHWUDQVPLVVLRQWLPHVKRUW7RGLJLSHDWWKURXJKWKUHH
71&VVXSSRUWLQJWKH8,)/22'FRPPDQGDUHSRUWLQJVWDWLRQPLJKWVHWD*36SRVLWLRQSDWKDV
/73*36YLDZLGH
$GLJLSHDWHU71&VXSSRUWLQJZLGHVHWE\WKH81,)/22'FRPPDQGDQGKHDULQJWKHUHSRUWLQJ
VWDWLRQ
VWUDQVPLVVLRQZRXOGWKHQGLJLWKH8,ORFDWLRQSDFNHWDVVXPLQJLWKDGQRWGRQHVRDOUHDG\
ZLWKLQDSUHVHWWLPHXVLQJDQDGGUHVVRIZLGH,QWXUQHDFKVLPLODUGLJLSHDWHUGRZQOLQHZRXOG
GLJLWKHUHSRUWLQJVWDWLRQ
V8,SDFNHWDQGUHGXFHGHFUHPHQWWKH66,'RIWKHGLJLSHDWHUDGGUHVVDJDLQ
$71&XVLQJ8,)/22'KDVWKHRSWLRQRILQVHUWLQJ0<&$//FUHDWLQJWZRGLJLSHDWHUDGGUHVVHV
UDWKHUWKDQRQHLQHDFKWUDQVPLWWHGGLJLSDFNHW
(DFKWLPHD8,75$&(SDFNHWLVGLJLSHDWHGHDFKGLJLDGGVLWV0<&$//WKXVFUHDWLQJDWUDFHRU
UHWXUQSDWK,QHIIHFWWKHVL]HRIWKHSDFNHWJURZVE\RQHGLJLSHDWHGDGGUHVVZLWKHDFKKRS
7KHFXUUHQWVHWWLQJRI8,':$,7GHWHUPLQHVZKHWKHURUQRWDGHOD\LVDGGHGWR8,GLJLSHDWSDFNHWV
WKRVHIRUPHGE\8,',*,8,)/22'RU8,75$&(EHIRUHWUDQVPLVVLRQRQFHWKHFKDQQHOLVFOHDU,I
8,':$,7LV21WKHGHOD\LVGHWHUPLQHGE\6/277,0(DQG3(56,67VHWWLQJV
7KHSXUSRVHRIWKH8,*$7(ZKLFKLVLQPXOWLSRUWGHYLFHVRQO\LVWRSUHYHQWKHDY\KLJKVSHHG8,
IUDPHDFWLYLW\IURPFRQJHVWLQJIORRGLQJWKHORZVSHHGSRUWIUHTXHQF\
1RWH 'LJLSHDWHUSULRULW\IRUFDOOVLJQVLVDVIROORZV0<&$//0<12'(0<$/,$68,',*,
8,)/22'8,75$&(HJLIWKHVDPHFDOOVLJQKDVEHHQDVVLJQHGWR0<$/,$6DQG8,',*,DWR
EHGLJLSHDWHGIUDPHZLWKWKDWFDOOVLJQZLOOEHGLJLSHDWHGDFFRUGLQJWRWKHUXOHVWKDWDSSO\WR
0<$/,$6
&RQILJXULQJ'LJLVIRU+)9+)*DWHZD\2SHUDWLRQV
7KHFRPPDQGV0<*$7(DQG8,*$7(DUHXVHGWRFRQILJXUHWKH.$0 ;/ DVDFURVVSRUWGLJLIRU8,
SDFNHWV0<*$7(VHWVWKHFDOOVLJQRIWKHFURVVSRUWGLJLDQG8,*$7(HQDEOHVRUGLVDEOHVWKH
GLUHFWLRQRIWKHJDWHZD\)RUH[DPSOHLI8,*$7(KDVEHHQVHWWR2))21LWFDQJDWHZD\IURPSRUW
WRSRUWEXW127IURPSRUWWRSRUW
%LEOLRJUDSK\
)RUGHWDLOVDERXW$356$3DFNHW5HSRUWLQJ6\VWHPGHYHORSHGE\%RE%UXQLQJD:%$35
FRQVLGHUREWDLQLQJDFRS\RI*HWWLQJ2Q7UDFNZLWK$356E\6WDQ+RU]HSDSDJHSDSHUEDFN
SXEOLVKHGLQE\WKH$55/0DLQ6WUHHW1HZLQJWRQ&7
)RUPRUHLQIRUPDWLRQRQWKH*OREDO3RVLWLRQLQJ6\VWHPZHUHFRPPHQGWKHIROORZLQJUHVRXUFHV
*HQHUDO,QIRUPDWLRQ
%UXQLQJD%RE:%$35$XWRPDWLFSDFNHWUHSRUWLQJV\VWHP$356WK
$55/'LJLWDO&RPPXQLFDWLRQV&RQIHUHQFH3URFHHGLQJVDYDLODEOHIURP$55/
0DLQ6WUHHW1HZLQJWRQ&7
6SURXO.HLWK:8=0DF$356WK$55/'LJLWDO&RPPXQLFDWLRQV&RQIHUHQFH
3URFHHGLQJV
7HFKQLFDO,QIRUPDWLRQ
&ROOLQV-HWDO*367KHRU\DQG3UDFWLFH6HFRQG(GLWLRQ6SULQJHU9HUODJ
(WKHULQJWRQ0LFKDHO)0VXEFDUULHUQHWZRUNH[WHQGVGLIIHUHQWLDO*36QDWLRQZLGH
0RELOH5DGLR7HFKQRORJ\)HEUXDU\
.DSODQ(OOLRW7KHJOREDOSRVLWLRQLQJV\VWHP*36&RPPXQLFDWLRQV4XDUWHUO\6XPPHU
/DQJOH\57KHPDWKHPDWLFVRI*36*36:RUOG0DJD]LQH-XO\$XJXVW
10($$6&,,,QWHUIDFH6WDQGDUG10($YHUVLRQ10($32%R[
0RELOH$/
27+(5)81&7,216
6RPHRIWKHIROORZLQJPRGHVRIRSHUDWLRQUHTXLUHVSHFLDOVRIWZDUHVRWKH\PD\QRWEHDYDLODEOHZKHQ
XVLQJVWDQGDUGWHUPLQDOSURJUDPVVXFKDV3DFWHUPRU3URFRPP3OXV
7(/(0(75<
$QDORJ,QSXWV
7KHHLJKWDQDORJLQSXWVDUHDYDLODEOHLQWKH7(/(0(75<FRQQHFWRU7KHVHLQSXWVFDQEHXVHGWR
PHDVXUHH[WHUQDO'&YROWDJHVIURP9WR9'&ZLWKXSWRELWDFFXUDF\
$QLPPHGLDWHUHDGLQJRIWKHDQDORJLQSXWVLVWDNHQDQGWKHPHDVXUHPHQWVGLVSOD\HGZKHQWKH
$1$/2*FRPPDQGLVJLYHQ
5$1*(VHWVWKHUDQJHRIYDOXHVWKDWDUHGLVSOD\HGIRUHDFKLQSXW)RUH[DPSOHWRVHWWKHUDQJHRIWKH
GLVSOD\WRGLUHFWO\PDWFKWKHYROWDJHLQSXWVHWWKH5$1*(FRPPDQGWR±7KHUDQJHRIHDFK
RIWKHHLJKWDQDORJLQSXWVDUHVHWLQGHSHQGHQWO\
7KH7(/(0(75<FRPPDQGVHWVXSDEHDFRQWKDWFRQWDLQVPHDVXUHPHQWVRIVHOHFWHGLQSXWVDW
VSHFLILHGLQWHUYDOV
1RWH 7RPHDVXUHYROWDJHVJUHDWHUWKDQ9'&WKHVLJQDOVVKRXOGEHDWWHQXDWHGWRGLYLGHWKHP
GRZQLQYROWDJH&KRRVHUHVLVWDQFHYDOXHVWRVFDOHWKHGHVLUHGLQSXWYROWDJHVWRDPD[LPXPRI
9'&DWWKHPLFURSURFHVVRUSLQ([WHUQDOYROWDJHVVKRXOGQHYHUEHDOORZHGWRH[FHHG9'&
5HPRWH&RQWURO
6L[FRQWURORXWSXWOLQHVDUHDOVRDYDLODEOH7KH\DUHRSHQGUDLQ)(7WUDQVLVWRUVZLWFKHVDQGDUH
FRQWUROOHGE\WKHFRPPDQG&75/7KH7(/(0(75<3257DQG3257FRQQHFWRUVHDFK
FRQWDLQWZRFRQWUROOLQHV2QHRIWKHFRQWUROOLQHVLQ3RUW+)LVXVHGLQ&:PRGHIRU&:NH\
RXWSXWZKHQWKH&:287387FRPPDQGLVVHWWR.(<,IWKH&:287387FRPPDQGLVVHWWR
$8',2WKDWFRQWUROOLQHLVDYDLODEOHDQGRSHUDWHVWKHVDPHDVWKHRWKHUFRQWUROOLQHV
&RS\LQJ1:6(0:,1:HDWKHU%URDGFDVWV
(0:,1VLJQDOVDUHVLPSO\DVWUHDPRI$6&,,FKDUDFWHUVVHQWDWEDXG8VLQJWKH+)$6&,,
PRGHZLWKDEDXGVHWWLQJWKHVHVLJQDOVFDQEHUHFHLYHGDQGGHPRGXODWHGWKRXJKSRUW$
VSHFLDOFRPSXWHUSURJUDPLVUHTXLUHGWRGLVSOD\VRPHRIWKH(0:,1GDWD)RUFXUUHQWLQIRUPDWLRQ
DERXW(0:,1DQGVRIWZDUHWRGLVSOD\LWVGDWDUHIHUWRVRXUFHVRQWKH,QWHUQHW
'$0$
'$0$6ODYH0RGHDVXVHGE\PDQ\DPDWHXUUDGLRRSHUDWRUVLQ*HUPDQ\%HOJLXP/X[HPERXUJ
WKH1HWKHUODQGV)UDQFH6ZLW]HUODQGDQGRWKHUSDUWVRI(XURSHLQLQFOXGHG
1RWH7RWKHEHVWRIRXUNQRZOHGJHWKHUHDUHQR'$0$QRGHVLQRSHUDWLRQLQWKH86RUDQ\ZKHUH
HOVHRXWVLGHRI(XURSH
:KDWLV'$0$"
'$0$'HPDQG$VVLJQHG0XOWLSOH$FFHVVLVDQHWZRUNSURWRFROIRUUHJXODWLQJSDFNHWWUDIILFWR
HOLPLQDWHRUGUDPDWLFDOO\UHGXFHFROOLVLRQVDPRQJXVHUVRQWKHFURZGHGFKDQQHOVDYDLODEOHWR
DPDWHXUVLQGHQVHO\SRSXODWHGQRUWKHUQ(XURSH
$VWKH(XURSHDQFKDQQHOVKDYHEHFRPHPRUHDQGPRUHFURZGHGDQGPRUHDQGPRUH'$0$V\VWHPV
KDYHEHHQHVWDEOLVKHGLWKDVEHFRPHDQHFHVVLW\IRU71&VWREHHTXLSSHGZLWKWKH'$0$VODYH
SURWRFROLQRUGHUWRXVHWKHORFDOQHWZRUNV
,QWKH'$0$V\VWHPDPDVWHUQRGHLVVHWXSLQHDFKORFDODUHDWRFRQWUROWUDQVPLVVLRQVIURPDOO
VWDWLRQVFRQQHFWHGWRWKHQRGH%\ORFDODJUHHPHQWXVHUVGRQRWFRQQHFWGLUHFWO\WRHDFKRWKHUWKH\
FRQQHFWRQO\WKURXJKWKHPDVWHU
'$0$ZDVGHYHORSHGLQ*HUPDQ\E\125'!/,1.5HIHUHQFHVWRPRUHLQIRUPDWLRQRQ'$0$
DUHSURYLGHGLQWKHELEOLRJUDSK\DWWKHHQGRIWKLVVHFWLRQ
:KDW'RHVD'$0$6\VWHP/RRN/LNH"
7KH'$0$PDVWHUQRGHUHTXLUHVDFRPSXWHUUXQQLQJVSHFLDOL]HG'$0$VRIWZDUH
7KH1HW1RGH711VRIWZDUHGHYHORSHGE\125'!/,1.LVRQHVXFKVSHFLDOL]HGSURJUDPZKLFKLV
XVHGLQWKHFRPSXWHURID'$0$PDVWHUDORQJZLWKRQH71&ZLWKDVSHFLDO(3520IRUHDFKUDGLR
IUHTXHQF\XVHGRQWKHV\VWHP
501&)OH[1HWVRIWZDUHLVDQRWKHUSURJUDPZKLFKLVYHU\SRSXODULQ*HUPDQ\:LWKLQHDFK/RFDO
$UHD1HWZRUN/$1HQGXVHUVVHWWKHPVHOYHVXSDV'$0$VODYHVXVLQJVSHFLDOO\HTXLSSHG
71&VZKLFKFRQWDLQILUPZDUH(3520WKDWFDQRSHUDWHLQD'$0$VODYHPRGHVXFKDVWKH
.DQWURQLFV71&VZLWK'$0$VODYHPRGHVXSSRUW7KHVODYHVPD\XVHDVWDQGDUGWHUPLQDORUKRVW
PRGHSURJUDPRUDQ\RIDYDULHW\RIVSHFLDOO\ZULWWHQ(XURSHDQSURJUDPVVXFKDV63*UDILN3DFNHW
DQG(6.$<VRPHRIZKLFKPDNHXVHRIWKH.,66PRGHIHDWXUHRIWKH71&
7RXVHWKH'$0$V\VWHPWKHXVHUFRQQHFWVWRWKH'$0$PDVWHUZLWKDQRUPDOFRQQHFWIUDPH
:KHQWKHPDVWHUUHVSRQGVWRWKHFRQQHFWIUDPHWKH71&LVDXWRPDWLFDOO\SODFHGLQWR'$0$VODYH
PRGH7KH'$0$PDVWHUSROOVHDFKVODYHZLWKLQWKH/$1LQDURXQGURELQIDVKLRQVRPHZKDWOLNH
WKHWRNHQSDVVLQJPHWKRGDQGWKHVODYH71&VWUDQVPLWSDFNHWVZKHQWKHPDVWHUKDVJUDQWHG
SHUPLVVLRQWRGRVR7KHVODYH71&VFRQWLQXHWREHSROOHGZLWKSULRULW\DPRQJWKHVODYHVDVVLJQHG
DFFRUGLQJWRWKHQXPEHURIWLPHVHDFKUHVSRQGVZLWKLQIRUPDWLRQIUDPHVDVRSSRVHGWRUUIUDPHV
LHQRGDWDWRVHQG3ULRULW\LVG\QDPLFDOO\DVVLJQHGVRWKDWWKRVHVWDWLRQVWKDWDUHVHQGLQJ
LQIRUPDWLRQDUHSROOHGPRUHIUHTXHQWO\WKDQLGOHVWDWLRQV+RZHYHURQFHDQLGOHVWDWLRQUHVSRQGV
ZLWKLQIRUPDWLRQLWVSULRULW\LVXSJUDGHG
&RPPXQLFDWLRQRYHUWKHZLGHUDUHDLVKDQGOHGEHWZHHQWKH'$0$PDVWHUQRGHVZKLFKDUH
FRQQHFWHGWRHDFKRWKHUXVLQJDVWDQGDUG1(7520WPW\SHSURWRFRO)RUWKH'$0$V\VWHPWR
ZRUNHIIHFWLYHO\HDFKVODYHDVVRFLDWHVZLWKRQO\RQHPDVWHUQRGHDQGFRQQHFWVRQO\WRWKDWPDVWHU,I
DQHQGXVHULVFRQQHFWHGWRPRUHWKDQRQHPDVWHUHDFKPDVWHUZLOOSROOWKHVODYH71&DFFRUGLQJWRLWV
SROOLQJVFKHGXOH:KHQSROOHGWKHVODYH71&ZLOOWUDQVPLWDOOIUDPHVLWKDVDYDLODEOHWRZKLFKHYHU
PDVWHUSROOVLW7KLVZRXOGLQFUHDVHWKHSUREDELOLW\RIFROOLVLRQVZLWKRWKHUXVHUVWKXVGHIHDWLQJWKH
SXUSRVHRIWKH'$0$V\VWHP
7KHIROORZLQJFRPPDQGVHQDEOHDQGFRQILJXUH'$0$PRGHLQWKH.$0;/'$0$DQG
'$0$&+&.
6HW'$0$WR21WRRSHUDWHDVD'$0$VODYHVWDWLRQRQFHDFRQQHFWLRQLVHVWDEOLVKHGZLWKD
'$0$PDVWHUVWDWLRQ
6HWVDWLPHRXWWLPHULQVHFRQGLQFUHPHQWVWRVSHFLI\KRZORQJWRZDLWWREHSROOHGE\D
FRQQHFWHG'$0$PDVWHUVWDWLRQEHIRUHGLVFRQQHFWLQJDQGUHYHUWLQJWR&60$RSHUDWLRQ
%LEOLRJUDSK\
%HUWUHP(ULF)3-(501&)OH[1HW7KH1HWZRUNRI&KRLFHLQ:HVWHUQ(XURSH,Q3DFNHW
3HUVSHFWLYHFRQGXFWHGE\6WDQ+RU]HSD:$/28467$SULO
-RVW*XQWHU'.:-6RQQDEHQG-RDFKLP'*)%/DQG)OH[1HW*URXS)OH[1HW7KH(XURSHDQ
6ROXWLRQ3URFHHGLQJVRIWKHWK&RPSXWHU1HWZRUNLQJ&RQIHUHQFH$PHULFDQ5DGLR5HOD\/HDJXH
1HZLQJWRQ&786$
0HGFDOI.DUO:.0'$0$$QRWKHU1HWZRUN6ROXWLRQ3URFHHGLQJVRIWKHWK&RPSXWHU
1HWZRUNLQJ&RQIHUHQFH$PHULFDQ5DGLR5HOD\/HDJXH1HZLQJWRQ&786$
5HFK:ROI+HQQLQJ1(2:'),&DQG.QHLS-RKDQQHV'*5%87KH*HUPDQ&HQWUDO
(XURSHDQ3DFNHW5DGLR1HWZRUN$Q2YHUYLHZ3URFHHGLQJVRIWKHWK&RPSXWHU1HWZRUNLQJ
&RQIHUHQFH$PHULFDQ5DGLR5HOD\/HDJXH1HZLQJWRQ&786$
6FKPLG'HWOHI-'.(*'$0$$1HZ0HWKRGRI+DQGOLQJ3DFNHWV"7UDQV0DUN
%LWWHUOLFK:$-3<3URFHHGLQJVRIWKHWK&RPSXWHU1HWZRUNLQJ&RQIHUHQFH$PHULFDQ5DGLR
5HOD\/HDJXH1HZLQJWRQ&786$3XEOLVKHGLQ*HUPDQDV'$0$HLQQHXHV9HUIDKUHQ
IU3DFNHW5DGLR"FT'/$SULO
7KH1HW1RGH711&RS\ULJKW125'!/,1.H9FR.ODXV'LHWHU9LHWK*RHUJHVVWUDVVH
'%UDXQVFKZHLJ*HUPDQ\1(7520LVDWUDGHPDUNRI6RIWZDUH,QF
&$87,217KH'$0$ILUPZDUHLQ.DQWURQLFV
71&LVEDVHGRQGRFXPHQWDWLRQSXEOLVKHGLQWKH
$55/&RPSXWHU1HWZRUNLQJ&RQIHUHQFHSDSHUVVHH%LEOLRJUDSK\DQGGRFXPHQWDWLRQSURYLGHGE\
125'!/,1.WKHGHYHORSHUVRI'$0$7KLVILUPZDUHZDVWHVWHGZLWK7KH1HW1RGHILUPZDUH
9HUVLRQ7).,669HUVLRQDQGE\YROXQWHHUWHVWHUVLQ(XURSHZLWKILUPZDUHXVHGLQ
H[LVWLQJ'$0$QHWZRUNV
.DQWURQLFVFDQQRWEHUHVSRQVLEOHIRUVXEVHTXHQWFKDQJHVWRWKH'$0$SURWRFROZKLFKPD\UHQGHU
WKLVILUPZDUHREVROHWHQRUJXDUDQWHHVDWLVIDFWRU\RSHUDWLRQVZLWKQHZHUYHUVLRQVRIWKHSURWRFRO
DQGRUFRPSOHPHQWDU\VRIWZDUH
+)0RGHV1RQ3DFNHW
7XQLQJLQWRUHFHLYHGVLJQDOV
0RVWRIWKHQRQSDFNHW+)PRGHVXVHWZRWRQHVD0$5.DQGD63$&(WRVHQGDQGUHFHLYHGDWD
7KLVLQFOXGHV577<$6&,,$0725DQGLWVYDULDWLRQV3$&725DQG*725&:DQG36.
PRGHVDUHWXQHGLQDGLIIHUHQWPDQQHU
7KH%$5*5$3+GLVSOD\RQWKHIURQWSDQHORIWKH.$0;/ LVDWXQLQJDLGWRSURSHUO\DGMXVWWKH
UHFHLYHUIUHTXHQF\WRGHFRGHVLJQDOV7KHULJKWHQGRIWKH%$5*5$3+LV0$5.DQGWKHOHIWHQGLV
63$&(
$GMXVWWKHUHFHLYHUIUHTXHQF\VRWKDWWKHWXQLQJ%$5*5$3+LVOLJKWHGEULJKWHVWDWERWKHQGV
,Q&:PRGHWKH%$5*5$3+ZLOOUHVWWRWKHULJKWHQG$GMXVWWKHUHFHLYHUVRWKDWUHFHLYHGVLJQDOV
FDXVHWKH%$5*5$3+WRGHIOHFWWRWKHOHIW
([LWLQJQRQSDFNHWPRGHV
:KHQVHQGLQJWKH&WUO&!;FRPPDQGGLUHFWLYHWRH[LWWKHPRGHDQ\GDWDOHIWLQLWVWUDQVPLWEXIIHU
GDWDQRW\HWWUDQVPLWWHGZLOOEHGLVFDUGHG
,I3DFNHWPRGHLQWKH+)SRUWKDVEHHQHQDEOHGE\VHWWLQJ+%$8'IRUSRUWWRDQXPEHUJUHDWHU
WKDQ]HURH[LWLQJWKHQRQSDFNHW+)PRGHUHWXUQVWRFRPPDQGPRGHDQG3DFNHWPRGH
&:
$WWKHFRPPDQGSURPSWW\SH&:DQGSUHVVUHWXUQ7KH.$0;/ ZLOOHQWHUWKH&:PRGHUHDG\WR
UHFHLYH0RUVHFRGHDWWKHVSHHGVSHFLILHGE\WKH&:63(('FRPPDQG7RHQWHU&:PRGHDWDVSHHG
RWKHUWKDQDVVSHFLILHGE\&:63(('HQWHUWKHFRPPDQG&:DQGWKHGHVLUHGVSHHG$PHVVDJH
LQGLFDWLQJWKHFXUUHQW&:VSHHGZLOOEHGLVSOD\HG
²²
DQGWKH.$0 ;/ ZLOOEHUHDG\WRUHFHLYHDQGGHFRGH&:VLJQDOVDWWKHLQGLFDWHGZSPUDWH
5HFHLYLQJ&:
,IWKHVSHHGRIWKH&:VLJQDOEHLQJUHFHLYHGIURPDQRWKHUVWDWLRQLVPRUHWKDQZSPGLIIHUHQWWKDQ
WKHFXUUHQWVHWWLQJ&:63(('WKHDXWRPDWLFVSHHGWUDFNLQJZLOOQRWEHDEOHORFNRQDQGGHFRGHWKH
UHFHLYHGVLJQDO7KH&WUO&!8GLUHFWLYHZLOOXQORFNWKHWUDFNLQJDOORZLQJDPXFKJUHDWHUVSHHG
UDQJHWREHWUDFNHG5HVHQGLQJWKH&WUO&!8GLUHFWLYHZLOOGLVSOD\WKHFXUUHQWWUDFNLQJVSHHG7R
ORFNWKH&:WUDQVPLWVSHHGWREHWKHVDPHDVWKHQHZUHFHLYHVSHHGVHQGWKH&WUO&!/GLUHFWLYH
7XQLQJLQDUHFHLYHGVLJQDO
:KHQLQ&:PRGHDQGQRVLJQDOVDUHEHLQJUHFHLYHGWKHWXQLQJEDUJUDSKZLOOUHVWWRWKHOHIWVLGH
$GMXVWWKHUHFHLYHUIUHTXHQF\RQWKHUDGLRVRWKDWDUHFHLYHG&:VLJQDOFDXVHVWKH.$0;/WXQLQJ
%$5*5$3+WRPRYHDOOWKHZD\IURPWKHOHIWWRWKHULJKW7KH&:721(FRPPDQGVHWVWKHDXGLR
WRQHIUHTXHQF\WREHGHWHFWHG,WVLQLWLDOVHWWLQJLV+=ZKLFKZLOOPDWFKRUZLOOEHYHU\FORVHWR
WKHRIIVHWEHWZHHQUHFHLYHDQGWUDQVPLWLQPDQ\PRGHOVRIWUDQVFHLYHUV
7KHUHFHLYHVSHHGLQ&:ZLOODXWRPDWLFDOO\DGMXVWRUWUDFNWRPDWFKWKHVSHHGRIDUHFHLYHGVLJQDO
ZLWKLQDSSUR[LPDWHO\ZRUGVSHUPLQXWHFHQWHUHGDWWKH&:63(('VHWWLQJRUWKHVSHHGHQWHUHG
ZLWKWKH&:FRPPDQG
,I(VDQG7VDUHGLVSOD\HGZKLOHUHFHLYLQJWU\VHWWLQJWKH&:%$1'FRPPDQGWRDVPDOOHUYDOXH
7KLVQDUURZVWKHLQSXWEDQGSDVVILOWHUZKLOHLWPDNHVWXQLQJDELWPRUHGLIILFXOWLWHOLPLQDWHVPXFKRI
WKHQRLVHRQQHDUE\IUHTXHQFLHVWKDWUHVXOWVLQSRRUFRS\,IDSURSHUO\WXQHG&:VLJQDOUHVXOWVLQWKH
WRQHEHLQJUHFHLYHGDWVRPHDXGLRIUHTXHQF\RWKHUWKDQ+]WKH&:721(FRPPDQGFDQEH
DGMXVWHGWRPDWFKWKHFHQWHUIUHTXHQF\RIWKHUHFHLYHU¶VILOWHUV
7UDQVPLWWLQJ&:
7RWUDQVPLW&:WKH.(<287SLQSLQIURPWKH+)UDGLRSRUWRI.$0 ;/ PXVWEHZLUHGWRWKH
&:NH\MDFNRQWKHWUDQVFHLYHU$Q)(7VZLWFKLQJWUDQVLVWRUDSSOLHVDFRQQHFWLRQWRJURXQGRQWKLV
SLQZKHQVHQGLQJ&:0DNHVXUHWKDWWKHWUDQVFHLYHULVFRQILJXUHGIRUDVWUDLJKWNH\LQSXWDQGLVQRW
XVLQJLWVRZQLQWHUQDOHOHFWURQLFNH\HU7KHUDGLRVKRXOGEHVHWWRWKH&:PRGHDQGFRQILJXUHGWKH
VDPHZD\DVZKHQVHQGLQJ&:ZLWKDVWUDLJKWNH\,WPD\QHHGWREHVHWIRU92;RSHUDWLRQWR
WUDQVPLWZKHQDFWLYDWLQJWKHNH\
,IDFRQQHFWLRQKDVDOVREHHQPDGHIURPWKH+)SRUWWRWKHPLFURSKRQHMDFNRQWKHUDGLRWKH377
VLJQDOFDQEHXVHGWRSXWWKHUDGLRLQWRWUDQVPLWPRGH6HWWKHFRPPDQG&:287387WR.(<377
:KHQFRQILJXUHGWKLVZD\WKH377ZLOOJRWRDFWLYHVWDWHZKHQWKH.$0 ;/ LVWUDQVPLWWLQJDQG&:
ZLOOEHVHQWE\WKH&:.(<OLQH
,WLVDOVRSRVVLEOHWRJHQHUDWHDXGLRWRQH&:DXGLRWRQHVDSSOLHGWRWKHPLFURSKRQHLQSXWRIWKH
UDGLR7KLVLVXVHIXOWRVHQG&:ZLWKDQ)0UDGLRLHPHWHUVIRUFRGHSUDFWLFHRUZKHQ
FRQQHFWLQJWKH.$0 ;/ WRDQDXGLRDPSOLILHUDQGVSHDNHUIRUORFDOFRGHSUDFWLFH7RXVHWKLVPRGH
WKH&:287387FRPPDQGPXVWEHVHWWR$8',23777KHIUHTXHQF\RIWKH&:DXGLRWRQHLV
FRQWUROOHGE\WKH&:721(FRPPDQG
7REHJLQWUDQVPLWWLQJ&:HQWHUWKH&WUO&!7GLUHFWLYH7\SHWKHPHVVDJHRQWKHNH\ERDUG
IROORZHGE\&WUO&!(7KLVZLOOUHWXUQWRUHFHLYHPRGHZKHQWKHPHVVDJHKDVEHHQWUDQVPLWWHG7R
UHWXUQWRUHFHLYHPRGHLPPHGLDWHO\VHQG&WUO&!5&KDUDFWHUVWKDWKDYHQRW\HWEHHQWUDQVPLWWHG
ZLOOUHPDLQLQWKHWUDQVPLWEXIIHUXQWLOWKH\KDYHEHHQWUDQVPLWWHGRUZLOOEHGLVFDUGHGZKHQH[LWLQJ
&:PRGH
,Q&:RSHUDWLRQVHYHUDOSURVLJQVFKDUDFWHUFRPELQDWLRQVDUHXVHGWRLQGLFDWHHQGRIPHVVDJH
EUHDNZDLWDQGPDQ\RWKHUFRPPRQSKUDVHV7RWUDQVPLWWKHVHSKUDVHVW\SHWKHNH\VWURNHVKRZQWR
VHQGWKHSUHGHILQHG3526,*1
.H\VWURNH
3URVLJQ
$5
%7
0HDQLQJ
(QGRI0HVVDJH
%UHDNRU3DXVH
$6
.$
6.
.1
$$
61
:DLW
$WWHQWLRQ
(QGRI7UDQVPLVVLRQ
,QYLWDWLRQWR7UDQVPLW
$OO$IWHU
$WWHQWLRQ
2WKHUFKDUDFWHUVFDQEHFRPELQHGLQWRDSURVLJQE\SUHFHGLQJWKHPZLWKWKH3526,*1FKDUDFWHU
ZKLFKLVVHWE\WKH3526,*1FRPPDQGWREHWKH?
,QDGGLWLRQWKH0256(FRPPDQGDOORZVVHYHUDOVSHFLDOFRGHFRPELQDWLRQVWREHGHILQHG$W\SHG
FKDUDFWHUFDQEHGHILQHGDVRQHRIWKH&:FKDUDFWHUVLQWKHFKDUWWREHWUDQVPLWWHGZKHQWKDWNH\LV
W\SHG$OVRWKH&:FKDUDFWHUVLQWKHFKDUWFDQEHGHILQHGWRGLVSOD\DVSHFLILFFKDUDFWHUZKHQWKDW
&:FKDUDFWHULVUHFHLYHG
,IWKH&:287387FRPPDQGGRHVQRWLQFOXGHWKH377RSWLRQWKH7UDQVPLW/('RQWKHIURQWSDQHO
RIWKH.$0 ;/ ZLOOQRWOLJKWZKHQWUDQVPLWWLQJLQ&:DQGWKH377OLQHZLOOQRWEHDFWLYDWHG
&:'LUHFWLYHV
:KLOHLQ&:PRGHVHYHUDOFRPPDQGIXQFWLRQVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!(5HWXUQWRUHFHLYHPRGHZKHQWUDQVPLWEXIIHULVHPSW\
&WUO&!//RFNWUDQVPLWDQGUHFHLYHVSHHGWRFXUUHQWUHFHLYHVSHHG
&WUO&!55HWXUQWRUHFHLYHPRGHLPPHGLDWHO\,IWKHWUDQVPLWEXIIHULVQ¶WHPSW\WKHUHPDLQLQJ
GDWDZLOOVWD\LQWKHEXIIHU
&WUO&!7(QWHUWUDQVPLWPRGH
&WUO&!88QORFNUHFHLYHVSHHGWRDOORZWUDFNLQJRILQFRPLQJVLJQDO7UDQVPLWVSHHGVWD\VDW
FXUUHQWVHWWLQJ
&WUO&!;([LW&:GLVFDUGDQ\GDWDLQWKHWUDQVPLWEXIIHUDQGUHWXUQWR&RPPDQGPRGH
&WUO&!Q&KDQJHRSHUDWLQJVSHHGWKHQXPEHUQ ZSP
Q
VSHHG
Q
VSHHG
7RH[LW&:PRGHDQGUHWXUQWRWKH&RPPDQGPRGHW\SH&WUO&!;
577<
7RRSHUDWHLQWKHUDGLRWHOHW\SH577<PRGHDWWKHFRPPDQGSURPSWHQWHUWKHFRPPDQG577<
DQGUHWXUQ7KHEDXGUDWHXVHGZLOOEHDVVSHFLILHGE\WKHFRPPDQG5%$8'$PHVVDJHLQGLFDWLQJ
WKHPRGHDQGEDXGUDWHZLOOEHGLVSOD\HG
²577<²
DQGWKH.$0 ;/ ZLOOEHUHDG\WRUHFHLYH577<VLJQDOVDWWKHLQGLFDWHGEDXGUDWH
7RHQWHU577<DWDEDXGUDWHGLIIHUHQWWKDQWKDWVSHFLILHGE\5%$8'HQWHUWKH577<FRPPDQGDQG
WKHGHVLUHGEDXGUDWHHJ577<
5HFHLYLQJ577<
577<XVHVVLJQDOOHYHOVDVGRPDQ\+)PRGHVWRWUDQVIHULQIRUPDWLRQ7KHVHWZRVLJQDOOHYHOVDUH
UHFHLYHGDVWRQHVXVXDOO\FDOOHGD0$5.DQG63$&(,QWKH.$0;/WKHGHIDXOW0$5.WRQH
IUHTXHQF\LV+=DQGWKH63$&(IUHTXHQF\LV+=7KHGLIIHUHQFHEHWZHHQWKH0$5.DQG
63$&(WRQHVLV+=XVXDOO\UHIHUUHGWRDVWKH6+,)77KHFRPPDQG6+,)7VHWVWKHGLIIHUHQFH
EHWZHHQWKH0$5.DQG63$&(,I6+,)7LVVHWWR02'(0DQ\WRQHIUHTXHQFLHVEHWZHHQ+=
DQG+=FDQEHXVHGIRU0$5.DQG63$&(DVORQJDVWKHIUHTXHQF\RI0$5.LVOHVVWKDQ
63$&(
7XQLQJ577<VLJQDOV
:KHQWXQLQJLQDQ577<VLJQDODGMXVWWKHUHFHLYHUVRSHUDWLQJIUHTXHQF\VRWKDWWKHWXQLQJEDUJUDSK
RQWKH.$0;/OLJKWVEULJKWHVWDWERWKHQGV,IWKHUHFHLYHGVLJQDOLV577<EXWLVGLVSOD\HGDV
JDUEOHGFKDUDFWHUVWKHVLJQDOPD\EHLQYHUWHGVSDFHPDUNLQVWHDGRIPDUNVSDFH,IWKLVLVWKHFDVH
VHQGWKHGLUHFWLYH&WUO&!,WRLQYHUWWKHGHPRGXODWRULQWKH.$0;/RUVHWWKHUHFHLYHUWRWKH
RSSRVLWHVLGHEDQGDQGUHWXQHLWWRUHFHLYHWKHVLJQDODJDLQ
1RWH ,)WKHFRPPDQG$8726757LV21UHFHLYHG577<GDWDZLOOQRWEHGLVSOD\HGXQWLOWKH
FKDUDFWHUVVSHFLILHGLQWKH0<$87267FRPPDQGKDYHEHHQUHFHLYHG
7UDQVPLWWLQJ577<
7RWUDQVPLW577<W\SH&WUO&!77KLVFDXVHVWKH.$0 ;/ WRNH\\RXUWUDQVPLWWHUWKHEDUJUDSKLQ
WKH.$0 ;/ JRHVGDUNDQGWKHWUDQVPLW/('OLJKW7\SHWKHPHVVDJH\RXZLVKWRVHQGDQGZKHQ\RX
DUHWKURXJKW\SH&WUO&!(7KH.$0 ;/ ZLOOWUDQVPLW\RXUPHVVDJHDQGZKHQWKHGDWDKDVEHHQ
WUDQVPLWWHGUHWXUQWRWKHUHFHLYHPRGH
8VHWKH&WUO&!QGLUHFWLYHVOLVWHGEHORZWRFKDQJHVSHHGVZKLOHRSHUDWLQJWKH577<PRGH
7ROHDYHWKH577<PRGHDQGUHWXUQWR&RPPDQGPRGHW\SH&WUO&!;
577<'LUHFWLYHV
:KLOHLQ577<PRGHVHYHUDOFRPPDQGIXQFWLRQVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!(5HWXUQWRUHFHLYHPRGHZKHQWKHWUDQVPLWEXIIHULVHPSW\
&WUO&!,,QYHUWUHFHLYHG0$5.63$&(VLJQDOVDQGLQYHUWWUDQVPLWWHG0$5.63$&(LIXVLQJ
$)6.66%
&WUO&!/6HQG/(77(56VKLIWFKDUDFWHU
&WUO&!16HQG),*85(6VKLIWFKDUDFWHU
&WUO&!55HWXUQWRUHFHLYHPRGHLPPHGLDWHO\,IWKHWUDQVPLWEXIIHULVQ¶WHPSW\UHPDLQLQJGDWD
ZLOOVWD\LQWKHEXIIHU
&WUO&!7(QWHUWUDQVPLWPRGH
&WUO&!;([LW577<GLVFDUGDQ\GDWDLQWKHWUDQVPLWEXIIHUDQGUHWXUQWR&RPPDQGPRGH
&WUO&!Q&KDQJHRSHUDWLQJVSHHGQ VSHHGEDXG(QWHULQJD]HURVHOHFWVWKHGHIDXOWEDXGDV
VSHFLILHGLQ5%$8'
Q
EDXGUDWH
5%$8'
0$56)HDWXUH
:KHQWKHFRPPDQG&2'(577<0$56KDVEHHQVHWVHYHUDOVSHFLDOIXQFWLRQVDUHHQDEOHGZKLOHLQ
577<PRGH
$ 7\SLQJ&WUO*!RQWKHNH\ERDUGDXWRPDWLFDOO\VHQGV),*6-----66666/756RYHUWKHUDGLR
7KLVLVDQDWWHQWLRQVLJQDO
% 8SRQWUDQVPLWLQJZLWK&WUO&!763$&(6IROORZHGE\&5!&5!/)!DUHWUDQVPLWWHG
EHIRUHDQ\RWKHUGDWD
& 7\SLQJ&WUO3!ZLOOVLJQLI\DSDJHEUHDNLQDORQJPHVVDJHE\WUDQVPLWWLQJ
&5!&5!/)!/)!/)!/)!
' 7\SLQJ&WUO=!ZLOOWUDQVPLWWKHHQGRIPHVVDJHVLJQDO
&5!&5!/)!/)!/)!/)!1111DQG/756VKLIWFKDUDFWHUV
7RIXOO\FRPSO\ZLWKWKH0$56577<JXLGHOLQHVSXEOLVKHGLQ)0WKHVHFRPPDQGVDOVR
QHHGWREHVHW&5$''21/)$''21$872&5$872/)2))&56832))DQG/)683
2))
:KHQ&5$''DQG/)$''DUHVHWWR21&5!&5!/)!DUHWUDQVPLWWHGZKHQWKHUHWXUQNH\LV
SUHVVHGRQWKHWHUPLQDO$872&5VHWWRFDXVHV&5!&5!/)!WREHLQVHUWHGLQWRWUDQVPLWWHG
WH[WDIWHUFKDUDFWHUVKDYHEHHQUHFHLYHGIURPWKHWHUPLQDOZLWKRXWDFDUULDJHUHWXUQ7KHVH
FRPPDQGVLQVXUHWKDWWUDQVPLWWHGGDWDPHHWVWKHJXLGHOLQHV
7RGLVSOD\H[DFWO\ZKDWLVUHFHLYHGIURPWKHRWKHUVWDWLRQVHW&56832))DQG/)683
2))VRWKDWWKH.$0;/ GRHVQRWVXSSUHVVDQ\RIWKHUHFHLYHGFDUULDJHUHWXUQRUOLQHIHHGFKDUDFWHUV
$6&,,
(QWHULQJWKHFRPPDQG$6&,,SODFHVWKH.$0 ;/ LQ$6&,,UHFHLYHPRGHDWWKHEDXGUDWHVSHFLILHG
LQWKH$6&%$8'FRPPDQGDQGZLOOEHUHDG\WRGHFRGHDSURSHUO\WXQHG$6&,,VLJQDODQGGLVSOD\
WKHLQIRUPDWLRQRQWKHWHUPLQDO
7KHPRGHDQGEDXGUDWHZLOOEHGLVSOD\HGWRWKHWHUPLQDO
²$6&,,²
7RRSHUDWH$6&,,DWDGLIIHUHQWEDXGUDWHHQWHUWKH$6&,,FRPPDQGZLWKDGHVLUHGEDXGUDWHHJ
$6&,,7KHEDXGUDWHVDYDLODEOHDUHWREDXG
5HFHLYLQJ$6&,,
/LNH577<$6&,,XVHVVLJQDOOHYHOVWRWUDQVIHULQIRUPDWLRQ7KHVHWZRVLJQDOOHYHOVDUHUHFHLYHGDV
WRQHVXVXDOO\FDOOHGD0$5.DQG63$&(7KHGHIDXOW0$5.WRQHIUHTXHQF\LV+=DQGWKH
63$&(IUHTXHQF\LV+=7KHGLIIHUHQFHEHWZHHQWKH0$5.DQG63$&(WRQHVLV+=
XVXDOO\UHIHUUHGWRDVWKH6+,)7
7KHFRPPDQG6+,)7VHWVWKHGLIIHUHQFHEHWZHHQWKH0$5.DQG63$&(,I6+,)7LVVHWWR
02'(0DQ\WRQHIUHTXHQFLHVEHWZHHQ+=DQG+=FDQEHXVHGIRU0$5.DQG63$&(DV
ORQJDVWKHIUHTXHQF\RI0$5.LVOHVVWKDQ63$&(:KHQ6+,)7LVVHWWRRUWKH0DUN
WRQHLV+=DQGWKH63$&(WRQHZLOOEHWKHVSHFLILHG6+,)7YDOXH
7XQLQJ$6&,,VLJQDOV
:KHQWXQLQJLQDQ$6&,,VLJQDODGMXVWWKHUHFHLYHUVRSHUDWLQJIUHTXHQF\VRWKDWWKHWXQLQJEDUJUDSK
RQWKH.$0;/OLJKWVEULJKWHVWDWERWKHQGV,IWKHUHFHLYHGVLJQDOLV$6&,,EXWLVGLVSOD\HGDV
JDUEOHGFKDUDFWHUVWKHVLJQDOPD\EHLQYHUWHGVSDFHPDUNLQVWHDGRIPDUNVSDFH,IWKLVLVWKHFDVH
VHQGWKHGLUHFWLYH&WUO&!, WRLQYHUWWKHGHPRGXODWRULQWKH.$0;/RUVHWWKHUHFHLYHUWRWKH
RSSRVLWHVLGHEDQGDQGUHWXQHLWWRUHFHLYHWKHVLJQDODJDLQ
1RWH ,I$8726757LV21UHFHLYHG$6&,,ZLOOQRWEHGLVSOD\HGXQWLOWKHFKDUDFWHUVVSHFLILHGE\WKH
FRPPDQG0<$87267KDYHEHHQUHFHLYHG
7RGHFRGHDQGGLVSOD\(0:,1VLJQDOVVHWWKH$6&,,EDXGUDWHWREDXGZKHQHQWHULQJWKH
$6&,,PRGHLH$6&,,
7UDQVPLWWLQJ$6&,,
7RWUDQVPLW$6&,,W\SH&WUO&!77KHWUDQVPLWWHUZLOOEHNH\HGWKHWXQLQJEDUJUDSKZLOOJRGDUN
DQGWKHWUDQVPLW/('ZLOOOLJKW(QWHUWKHPHVVDJHWREHWUDQVPLWWHGWKHQW\SH&WUO&!(7UDQVPLW
ZLOOVWRSZKHQWKHGDWDKDVDOOEHHQVHQWUHWXUQLQJWRWKHUHFHLYHPRGH
:KLOHLQ$6&,,PRGHWKHEDXGUDWHFDQEHFKDQJHGE\XVLQJWKH&WUO&!QGLUHFWLYHVOLVWHGEHORZ
7ROHDYHWKH$6&,,PRGHDQGUHWXUQWR&RPPDQGPRGHW\SH&WUO&!;
$6&,,'LUHFWLYHV
:KLOHLQ$6&,,PRGHVHYHUDOFRPPDQGIXQFWLRQVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!(5HWXUQWRUHFHLYHPRGHZKHQWUDQVPLWEXIIHULVHPSW\
&WUO&!,,QYHUWUHFHLYHG0$5.63$&(VLJQDOVDQGLQYHUWWUDQVPLWWHG0$5.63$&(LIXVLQJ
$)6.66%
&WUO&!55HWXUQWRUHFHLYHPRGHLPPHGLDWHO\,IWKHWUDQVPLWEXIIHULVQ¶WHPSW\WKHUHPDLQLQJ
GDWDZLOOVWD\LQWKHEXIIHU
&WUO&!7(QWHUWUDQVPLWPRGH
&WUO&!;([LW$6&,,GLVFDUGDQ\GDWDLQWKHWUDQVPLWEXIIHUDQGUHWXUQWR&RPPDQGPRGH
&WUO&!Q&KDQJHRSHUDWLQJVSHHGQ EDXGUDWH(QWHULQJD]HURVHOHFWVWKHGHIDXOWEDXGDV
VSHFLILHGLQ$6&%$8'
Q
VSHHGEDXG
$6&%$8'
$0725LQFOXGHV/$0725)(&6(/)(&1$97(;
$07252SHUDWLRQ
6HYHUDOPRGHVRI$0725RSHUDWLRQDUHSRVVLEOH(DFK$0725VWDWLRQLVLGHQWLILHGE\D6(/&$/
6HOHFWLYH&DOOZKLFKLVGHULYHGIURPDQDPDWHXUFDOOVLJQ7KHDFFHSWHGSUDFWLFHLQ$0725LVWRXVH
WKHILUVWOHWWHUDQGWKHODVWWKUHHOHWWHUVRIDFDOOVLJQDVDQ$07256(/&$/7KH6(/&$/LV
DXWRPDWLFDOO\JHQHUDWHGZKHQWKH.$0 ;/ LVILUVWLQLWLDOL]HGXVLQJWKHFDOOVLJQHQWHUHG7KH
6(/&$/FDQEHFKDQJHGDWDQ\WLPHZLWKWKH0<6(/&$/FRPPDQG
,QDGGLWLRQWKH.$0 ;/ VXSSRUWVDFKDUDFWHU6(/&$/DQGJHQHUDWHVDXQLTXH6(/&$/IRUWKLV
PRGHIURPLWVFDOOVLJQ7KH.$0 ;/ ZLOODFFHSWDOLQNIURPDQRWKHUVWDWLRQZLWKHLWKHUWKH
FKDUDFWHURUFKDUDFWHU6(/&$/
0RGH$$0725LVFDOOHG$54DQGLVDFRQQHFWHGPRGHDOORZLQJFRPPXQLFDWLRQZLWKMXVW21(
RWKHUVWDWLRQDWDWLPH7KHWZRVWDWLRQVVHQGGDWDEDFNDQGIRUWKDWDUDSLGLQWHUYDOHYHU\
PLOOLVHFRQGVWKHUHIRUHWKLVPRGHUHTXLUHVUDGLRVFDSDEOHRIVZLWFKLQJIURPUHFHLYHWRWUDQVPLWDQG
EDFNYHU\UDSLGO\
5DGLRVWKDWXVHPHFKDQLFDOUHOD\VWRVZLWFKEHWZHHQUHFHLYHDQGWUDQVPLWW\SLFDOO\GRQRWVZLWFKIDVW
HQRXJKWRRSHUDWH0RGH$$0725
0RGH%$0725LVQRUPDOO\FDOOHG)(&7KLVLVDEURDGFDVWPRGHDOORZLQJVLPXOWDQHRXVUHFHSWLRQ
E\VHYHUDOVWDWLRQV6LQFHWKHUHLVQREDFNDQGIRUWKWUDQVPLVVLRQEHWZHHQVWDWLRQVDVLQ$0725
PRGH$WKHVZLWFKLQJVSHHGRIWKHUDGLRLVQRWVLJQLILFDQW$VXEVHWRI)(&LVFDOOHG6(/)(&²
6HOHFWLYH)(&,QWKLVPRGHWKHGLVSOD\RIUHFHLYHGPHVVDJHVFDQEHOLPLWHGWRRQO\WKRVHEHJLQQLQJ
ZLWKWKHFDOOVLJQRUQDPHDVVSHFLILHGLQWKH0<6(/&$/DQG0<*5283FRPPDQGV
/$0725PRGHLVOLVWHQRQO\$0725,QWKLVPRGHGDWDIURPRWKHUVWDWLRQVFRPPXQLFDWLQJZLWK
HDFKRWKHUXVLQJ0RGH$$0725$540RGH%$0725)(&6(/)(&RU1$97(;
EURDGFDVWVFDQEHGLVSOD\HG
)RUPRUHLQIRUPDWLRQRQ$0725WKHRU\UHDGWKH$PHULFDQ5DGLR5HOD\/HDJXH2SHUDWLQJ0DQXDO
0RGH$$542SHUDWLRQ
7RRSHUDWH0RGH$$0725VWDUWIURP&RPPDQG0RGHFPG7\SHWKHFRPPDQG$0725DQG
SUHVVUHWXUQ7KLVHQWHUVWKH$0725VWDQGE\PRGHDQGWKHPHVVDJH³$072567$1'%<´ZLOOEH
GLVSOD\HG,QWKLVPRGH\RXFDQPRQLWRURWKHUVWDWLRQVWUDQVPLWWLQJ)(&FDOOLQJ&4WUDQVPLW)(&WR
FDOO&4DQGUHVSRQGWRD0RGH$OLQNUHTXHVWIURPDQRWKHUVWDWLRQ127(<RXZLOOQRWEHDEOHWR
PRQLWRURUWUDQVPLW)(&IURPWKLVPRGHLI$54%%6LV21,I$8726757LV21\RXZLOORQO\
FRS\6(/)(&WUDQVPLVVLRQVIURPRWKHUVWDWLRQVLIWKH\FRQWDLQ\RXU6(/&$/LQWKHWUDQVPLVVLRQ
&DOOLQJ&4
7RFDOO&4W\SH&WUO&!77KHWUDQVPLWWHUZLOOEHNH\HGWKHWXQLQJEDUJUDSKZLOOJRGDUNDQGWKH
WUDQVPLW/('ZLOOOLJKW7\SHDW\SLFDO&4PHVVDJHVXFKDV
&4&4&4&4'(1‘.11‘.111.1
&4&4&4&4'(1‘.11‘.111.1
&4&4&4&4'(1‘.11‘.111.1
6(/&$/11.111.1
36(...
:KHQILQLVKHGW\SLQJWKH&4PHVVDJHHQGZLWK&WUO&!(7KLVFDXVHVDUHWXUQWR$0725VWDQGE\
PRGHDIWHUWKHPHVVDJHKDVEHHQVHQW$QGWKH$072567$1'%<PHVVDJHZLOOEHGLVSOD\HGWRWKH
WHUPLQDODQGPRQLWRULQJIRUOLQNUHTXHVWVRUPRGH%WUDQVPLVVLRQVIURPRWKHUVWDWLRQVZLOOUHVXPH
:KHQDVWDWLRQOLQNVWRWKH.$0 ;/LWEHFRPHVWKH,QIRUPDWLRQ5HFHLYLQJ6WDWLRQ,56DQGWKH
VWDWLRQWKDWFDOOHGLVWKH,QIRUPDWLRQ6HQGLQJ6WDWLRQ,66:KHQWKHRWKHUVWDWLRQWUDQVPLWVGDWDLW
ZLOOEHUHFHLYHGDQGGLVSOD\HGWRWKHWHUPLQDO
$WVRPHSRLQWLQWKHFRQYHUVDWLRQWKHRWKHUVWDWLRQZLOOVHQGDFKDQJHRYHUUHTXHVWWRWKHQEHFRPH
WKH,56RUUHFHLYLQJVWDWLRQ1RUPDOO\WKHRWKHUVWDWLRQZLOOPDNHVRPHNLQGRIVWDWHPHQWLQWKH
PHVVDJHWRLQGLFDWHWKDWKHLVJRLQJWROHW\RXVHQGGDWD1RZDVWKH,66VWDWLRQ\RXFDQVHQGGDWDWR
KLP)RULQVWDQFHKHPLJKWVD\³62+2:&23<"´WKHQW\SHVD"FKDQJHRYHUZKLFKLV
WUDQVPLWWHGWR\RX
:KHQWKH.$0 ;/ UHFHLYHVDQGGLVSOD\VWKH"LWEHFRPHVWKH,66DQGFDQQRZVHQGGDWDWRWKH
RWKHUVWDWLRQ:KHQ\RXZDQWWKHRWKHUVWDWLRQWRDJDLQVHQGGDWDWR\RXW\SHWKH"RQ\RXU
NH\ERDUG7KH"FKDQJHRYHULVVHQWWRWKHRWKHUVWDWLRQZKLFKQRZEHFRPHVWKH,66VWDWLRQ
$WWKHHQGRIWKHFRQWDFW462RQHRIWKHWZRVWDWLRQVPXVW³EUHDNWKHOLQN´
7KLVLVHTXLYDOHQWWRKDQJLQJXSDSKRQHDWWKHHQGRIDFRQYHUVDWLRQ7REUHDNWKHOLQNIURPWKH.$0
;/W\SHWKHGLUHFWLYH&WUO&!'7KH$0725VKXWGRZQVHTXHQFHZLOOWKHQEHVHQWWRWKHRWKHU
VWDWLRQERWKVWDWLRQVZLOOVWRSWUDQVPLWWLQJDQGD&:,'ZLOOEHWUDQVPLWWHGLIWKHFRPPDQG$54,'
LVVHWWRDQXPEHUJUHDWHUWKDQ]HUR
&RPPRQSUDFWLFHDPRQJRSHUDWRUVLVWKDWWKH,66VWDWLRQVHQGVDVKRUWPHVVDJHLQGLFDWLQJWKDWKHLV
JRLQJWREUHDNWKHOLQN8VXDOO\WKLVFRQVLVWVRIVRPHWKLQJOLNH³/LQN'RZQ²6.´
$QVZHULQJD&4
:KLOHLQWKH$07256WDQGE\PRGH\RXPD\VHHDQRWKHUVWDWLRQFDOOLQJ&4DQGZDQWWRFDOOWKDW
VWDWLRQ<RXPXVWNQRZWKHVWDWLRQ¶V6(/&$/DQGWKLVLQIRUPDWLRQLVQRUPDOO\VHQWLQWKH&4
PHVVDJH,QWKHH[DPSOHDERYHWKHVWDWLRQ¶V6(/&$/LV11.1,I\RXZDQWWRFDOOWKLVVWDWLRQ\RX
PXVWILUVWOHDYHWKH$07256WDQGE\PRGHDQGJHWWKHFRPPDQGSURPSWFPGIURP\RXU.$0 ;/
7RGRVRW\SH&WUO&!;
)URPWKHFRPPDQGSURPSWW\SH$072511.1DQGSUHVVUHWXUQ<RXU.$0 ;/ EHJLQVVHQGLQJWKH
OLQNUHTXHVWWRWKHRWKHUVWDWLRQDQGDIWHUUHFHLYLQJWKHSURSHUDFNQRZOHGJHPHQWVWKHPHVVDJH³
/,1.('7211.1´ZLOODSSHDURQWKHVFUHHQ<RXDUHQRZWKH,66DQG\RXPD\EHJLQW\SLQJ\RXU
PHVVDJHWREHWUDQVPLWWHG
)URPWKLVSRLQWRQ\RXZLOOVZLWFKEDFNDQGIRUWKIURPVHQGLQJVWDWLRQWRUHFHLYLQJVWDWLRQZLWKWKH
FKDQJHRYHUVDVGHVFULEHGDERYHLQ³&DOOLQJ&4´:KHQWKHFRQYHUVDWLRQLVILQLVKHG\RXRUWKHVWDWLRQ
\RXDUHWDONLQJWRPXVWEUHDNWKHOLQN
,I\RXZDQWWREUHDNWKHOLQNW\SH&WUO&!'
:KLOHUHFHLYLQJGDWDIURPDQRWKHUVWDWLRQDVWKH,56VWDWLRQ\RXFDQ³VHL]H´WKHOLQNDQGEHFRPHWKH
,66VWDWLRQE\HQWHULQJWKHGLUHFWLYH&WUO&!7:KHQXVHWKHQRUPDO"FKDQJHRYHUVHTXHQFHWR
DJDLQEHFRPHWKH,56
0RGH%)(&2SHUDWLRQ
7RRSHUDWH0RGH%$0725LQ&RPPDQGPRGHFPGW\SH)(&DQGSUHVVUHWXUQ1RPHVVDJHZLOO
EHGLVSOD\HGZKHQHQWHULQJ)(&,QWKLVPRGHDQ\)(&WUDQVPLVVLRQVIURPRWKHUVWDWLRQFDQEH
UHFHLYHGRU)(&FDQEHWUDQVPLWWHG6LQFH)(&LVDEURDGFDVWPRGHWUDQVPLVVLRQVFDQEHFRSLHGE\
VHYHUDOVWDWLRQVDWWKHVDPHWLPH
7RWUDQVPLW)(&HQWHUWKH&WUO&!7GLUHFWLYH7KLVNH\V\RXUUDGLRWKHEDUJUDSKRQWKH.$0 ;/
JRHVGDUNDQGWKHUHGWUDQVPLW/('OLJKWV7\SHWKHPHVVDJH\RXZDQWWRVHQG$WWKHFRQFOXVLRQRI
\RXUPHVVDJHW\SH&WUO&!(<RXU.$0 ;/ ZLOOWUDQVPLW\RXUPHVVDJHLQ)(&PRGHDQGUHWXUQWR
WKHUHFHLYHPRGHZKHQDOORIWKHGDWDKDVEHHQWUDQVPLWWHG
0RGH%6(/)(&2SHUDWLRQ
5HFHLYLQJ0RGH%6(/)(&
7RUHFHLYHRQO\DGGUHVVHG)(&PHVVDJHVVHWWKH$8726757FRPPDQG21WKHQHQWHUWKH$0725
6WDQGE\PRGHRUWKH)(&PRGHDVGHVFULEHGDERYH7KH.$0 ;/ ZLOOQRZFRS\RQO\0RGH%
6(/)(&WUDQVPLVVLRQVWKDWEHJLQZLWKWKHVSHFLILHG6(/&$/
:KHQDFDOOVLJQZDVHQWHUHGGXULQJDXWREDXGVHWXSD6(/&$/EDVHGRQWKDWFDOOVLJQZDV
DXWRPDWLFDOO\FDOFXODWHGDQGVWRUHG6HHWKH0<6(/&$/FRPPDQGIRUGHWDLOV
7UDQVPLWWLQJ0RGH%6(/)(&
7RWUDQVPLWD0RGH%6(/)(&EURDGFDVWW\SH)(&IROORZHGE\WKH6(/&$/RIWKHGHVLUHG
UHFHLYLQJVWDWLRQDQGSUHVVUHWXUQ7KH.$0 ;/ NH\VWKHUDGLRWKHEDUJUDSKJRHVGDUNDQGWKHUHG
WUDQVPLW/('OLJKWV7KHHQWHUHG6(/&$/ZLOOEHVHQWDVWKHSUHDPEOHWRWKHWUDQVPLVVLRQIROORZHG
E\DQ\PHVVDJHHQWHUHGRQWKHNH\ERDUG7RUHWXUQWRUHFHLYHDIWHUDOORIWKHGDWDKDVEHHQWUDQVPLWWHG
W\SH&WUO&!(7KH.$0 ;/ ZLOOXQNH\WKHWUDQVPLWWHUDQGZLOOEHUHDG\WRUHFHLYH$1<)(&
WUDQVPLVVLRQ
:KHQUHDG\WRWUDQVPLWDJDLQW\SH&WUO&!77KH.$0 ;/ ZLOOILUVWVHQGWKH6(/&$/HQWHUHG
SUHYLRXVO\DQGWKHQH[WW\SHGPHVVDJH7KH6(/&$/LVWUDQVPLWWHGHDFKWLPHDQHZWUDQVPLVVLRQLV
VWDUWHGZKLOHLQ6(/)(&PRGH7RH[LW6(/)(&PRGHW\SH&WUO&!;WRUHWXUQWRWKH&RPPDQG
PRGH
/LVWHQ$0725RSHUDWLRQ
7RHQWHU/LVWHQ$0725PRGHLQ&RPPDQGPRGHFPGW\SH/$0725DQGSUHVVUHWXUQ7KLV
SODFHVWKH.$0 ;/ LQDPRQLWRURQO\PRGHHQDEOLQJGLVSOD\RI0RGH$0RGH%6(/)(&RU
1$97(;$07(;WUDQVPLVVLRQV
:KLOHPRQLWRULQJD0RGH$OLQNEHWZHHQWZRRWKHUVWDWLRQVSDUWVRIWKRVHWUDQVPLVVLRQVPD\EH
PLVVHGRUUHSHDWHG7KLVRFFXUVEHFDXVHWKRVHOLQNHGVWDWLRQVDUHYHULI\LQJWKDWWKHLUGDWDLVWUDQVIHUUHG
FRUUHFWO\WRHDFKRWKHU7KHUHLVQRZD\ZKHQMXVWPRQLWRULQJWRKDYHWKHVDPHYHULILFDWLRQ
,IZKLOHPRQLWRULQJ0RGH$VLJQDOVUHFHLYHGFKDUDFWHUVVHHPWREHJDUEOHGWKH&WUO&!5GLUHFWLYH
ZLOOIRUFHWKH.$0 ;/ WRDWWHPSWWRUHV\QFKURQL]HWRWKHVLJQDO
127( 7KH/$0725PRGHLVUHFHLYHRQO\DQGWUDQVPLWFDQQRWEHHQDEOHG
1RWHVRQ$0725RSHUDWLRQ
$QDXWRPDWLF&:,'FRQWDLQLQJWKHWH[WDVVSHFLILHGE\WKH&:,'7(;7FRPPDQGFDQEHVHQWGXULQJ
D0RGH$OLQNLIGHVLUHG6HW$54,'WRWKHGHVLUHGQXPEHURIPLQXWHVEHWZHHQ&:,'V
7KH&:,'VSHHGLVVHWE\WKH&:63(('FRPPDQG
$0725LVFRPSDWLEOHZLWKWKH6,725PRGHXVHGE\VRPHFRPPHUFLDOVWDWLRQV
$0725GLUHFWLYHV
:KLOHLQ$0725PRGHVHYHUDOFRPPDQGGLUHFWLYHVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!$$ERUWOLQN
&WUO&!'%UHDNOLQNDQGUHPDLQLQ$07256WDQGE\
&WUO&!(5HWXUQWRUHFHLYHPRGHZKHQWUDQVPLWEXIIHULVHPSW\
&WUO&!,,QYHUWUHFHLYHG0$5.63$&(VLJQDOVDQGLQYHUWWUDQVPLWWHG0$5.63$&(LIXVLQJ
$)6.66%
&WUO&!55HWXUQWRUHFHLYHPRGHLPPHGLDWHO\LQ)(&WUDQVPLW,IWKHWUDQVPLWEXIIHULVQ¶WHPSW\
WKHUHPDLQLQJGDWDZLOOUHPDLQLQWKHEXIIHU5HV\QFLIPRQLWRULQJ,IOLQNHGLQVHUWV"FKDQJHRYHU
LPPHGLDWHO\,IWKHWUDQVPLWEXIIHULVQ¶WHPSW\WKHUHPDLQLQJGDWDZLOOUHPDLQLQWKHEXIIHU
&WUO&!7(QWHUWUDQVPLWPRGH²VHL]H,66VWDWXV
&WUO&!&WUO7!7RJJOH75$&(PRGH212))
&WUO:!6HQG:KR$UH<RXLQTXLU\
&WUO&!;([LW$0725GLVFDUGDQ\GDWDLQWKHWUDQVPLWEXIIHUDQGUHWXUQWR&RPPDQGPRGH
1$97(;
1$97(;$07(;7KHRU\
1DYWH[WUDQVPLVVLRQVDUHLQUHDOLW\0RGH%$0725)(&:KDWPDNHV1DYWH[XQLTXHKRZHYHU
LVWKHDFWXDOPHVVDJHIRUPDW1DYWH[VWDWLRQVDOZD\VWUDQVPLWRQN+]/6%DQGDUHJHQHUDOO\
ORFDWHGRQWKHFRDVWOLQHV7KHVDPHIRUPDWLVQRZEHLQJXVHGE\WKH$PHULFDQ5DGLR5HOD\/HDJXH
$55/WRWUDQVPLWEXOOHWLQVRQDGDLO\EDVLV7KHVHEXOOHWLQVDUHWUDQVPLWWHGGXULQJVFKHGXOHG
WHOHSULQWHUEXOOHWLQV
$WWKHEHJLQQLQJRID1$97(;RU$07(;WUDQVPLVVLRQWKHVHQGLQJVWDWLRQZLOOVHQGDSUHDPEOH
LGHQWLI\LQJWKHVWDWLRQWKDWLVWUDQVPLWWLQJWKHW\SHRIPHVVDJHDQGWKHPHVVDJHVHTXHQFHQXPEHU
7KHSUHDPEOHORRNVOLNHWKLV
=&=&$*
7KH=&=&LVDOZD\VSUHVHQWDQGLQGLFDWHVWKHEHJLQQLQJRID1DYWH[PHVVDJH7KHUHFHLYLQJXQLWVHHV
WKLVDVWKHLQGLFDWLRQWKDWWKHLGHQWLILHULVFRPLQJQH[W7KHFRPSRQHQWVRIWKHLGHQWLILHUDVGHILQHGLQ
WKH1$97(;GRFXPHQWDWLRQDUH
%%%%
%LVXVHGWRLGHQWLI\WKHVWDWLRQWKDWLVWUDQVPLWWLQJDQGFRQVLVWVRIWKHOHWWHUV$WKURXJK=%
LQGLFDWHVWKHPHVVDJHVFODVV$WKURXJK=1RWHWKDWFODVV$%DQG'PHVVDJHVPXVWDOZD\VEH
SULQWHGRQFH%DQG%DUHWKHVHTXHQFHQXPEHUIRUWKHPHVVDJHDQGZLOOKDYHYDOXHVIURP
WKURXJK0HVVDJHVZLWKVHTXHQFHQXPEHUDUHDOZD\VSULQWHG:KHQWKHPHVVDJHQXPEHUVUHDFK
WKH\ZUDSWRDVWKHQH[WQXPEHU
7KHIROORZLQJVWDWLRQVPD\EHRQWKHDLUDQGWUDQVPLWWLQJ1$97(;
+DOLID[1RYD6FRWLD
*XDP
%RVWRQ0$
+RQROXOX+,
1HZ2UOHDQV/$
.RGLDN$.
0LDPL)/
$VWRULD25
6DQ-XDQ3XHUWR5LFR
/RQJ%HDFK&$
&KHVDSHDNH9$
6DQ)UDQFLVFR&$
)RU1$97(;PHVVDJHVWKHFXUUHQWO\DVVLJQHGPHVVDJHFODVVHVDUHDVIROORZV
$1DYLJDWLRQDOZDUQLQJV
%0HWHRURORJLFDOZDUQLQJVVWRUPZDUQLQJV
&,FHUHSRUWV
'6HDUFKDQG5HVFXH,QIRUPDWLRQ
(0HWHRURORJLFDOIRUHFDVWV
)3LORWPHVVDJHV
*'HFFDPHVVDJH
+/25$1&PHVVDJH
,2PHJDPHVVDJH
-'LIIHUHQWLDO2PHJDPHVVDJH
=458QRPHVVDJHRQKDQG
.<5HVHUYHG
127( .KDVEHHQSURSRVHGIRU³RWKHUHOHFWURQLFQDYLJDWLRQDODLGV\VWHPPHVVDJH´
2QFHDPHVVDJHKDVEHHQUHFHLYHGIURPDSDUWLFXODUVWDWLRQZLWKOHVVWKDQDVSHFLILHGDPRXQWRIHUURUV
LWZLOOQRWEHSULQWHGDJDLQDVWKHUHFHLYLQJV\VWHPNHHSVWUDFNRIWKHPHVVDJHQXPEHUVLWKDV
UHFHLYHG,ILWWKHQVHHVWKHVDPHPHVVDJHFODVVDQGQXPEHUIURPWKHVDPHWUDQVPLWWLQJVWDWLRQLWZLOO
QRWRXWSXWWKHPHVVDJHWRWKHWHUPLQDO
)RU$55/$07(;EXOOHWLQVWKHGHILQHG%FRGHVDUHDVIROORZV
$
&
,
6
;
$55/LVVXHGEXOOHWLQV
&55/LVVXHGEXOOHWLQV&DQDGLDQ
,$58LVVXHGEXOOHWLQV
-$5/LVVXHGEXOOHWLQV
$06$7LVVXHGEXOOHWLQV
0LVFHOODQHRXV
$
%
'
(
*
.
3
6
;
(PHUJHQF\EXOOHWLQV
3ULRULW\EXOOHWLQV
5HVHUYHG
';EXOOHWLQV
*HQHUDOEXOOHWLQV
.HSODULDQEXOOHWLQV
3URSDJDWLRQIRUHFDVWV
6DWHOOLWHEXOOHWLQV
0LVFHOODQHRXVEXOOHWLQV
7KHFXUUHQWO\DVVLJQHGPHVVDJHFODVVHVDUHDVIROORZV
1$97(;$07(;2SHUDWLRQ
$VLQWKH/$0725PRGH1DYWH[LVDUHFHLYHRQO\PRGHWRUHFHLYHDQGGLVSOD\PHVVDJHEURDGFDVWV
7RHQWHUWKH1$97(;$07(;PRGHVLPSO\W\SH1$97(;IURPWKHFRPPDQGSURPSWDQGSUHVV
UHWXUQ$WWKLVSRLQWQRWKLQJZLOOEHGLVSOD\HGWRWKHWHUPLQDOXQWLODYDOLG1$97(;PHVVDJHLV
UHFHLYHG
6HYHUDOFRPPDQGVDIIHFWWKHGLVSOD\RI1DYWH[PHVVDJHV7KH\DUH1$967$1$906*
1$9(55DQG1$9&/5
1$967$VHOHFWVZKLFKVWDWLRQVWRGLVSOD\PHVVDJHVIURPRQO\WKRVHVHOHFWHGRU$//
1$906*VHOHFWVZKLFKPHVVDJHFODVVHVWRGLVSOD\RQO\WKRVHVHOHFWHGRU$//
1$9(55VSHFLILHVWKHSHUFHQWRIHUURUVDOORZHGLQDUHFHLYHGPHVVDJHEHIRUHFRQVLGHULQJWKH
PHVVDJHDVQRWEHLQJUHFHLYHGSURSHUO\DQGGLVFDUGLQJLW,IPHVVDJHFODVVHV$%RU'DUHOHIWRXWRI
WKHOLVWRIYDOLGPHVVDJHFODVVHVWREHUHFHLYHGD:$51,1*PHVVDJHZLOOEHGLVSOD\HGVLQFHWKH
1$97(;VSHFLILFDWLRQUHTXLUHVWKDWWKHVHFODVVHVPXVWEHSULQWHGDWOHDVWRQFH
1$9&/5ZLOOFOHDUWKHEXIIHUZKLFKVWRUHVPHVVDJHVHTXHQFHQXPEHUVWKDWKDYHEHHQUHFHLYHG
DOORZLQJDOOPHVVDJHVWREHUHFHLYHGDJDLQ,IWKH1DYWH[PRGHLVXVHGLQIUHTXHQWO\LWLVDGYLVDEOHWR
FOHDUWKHQXPEHUVVLQFHWKHWUDQVPLWWLQJVWDWLRQPD\KDYHDOUHDG\ZUDSSHGVHTXHQFHQXPEHUVEDFN
DURXQGWRWKRVHWKDWKDYHEHHQUHFHLYHGEHIRUH
7RH[LWWKH1$97(;PRGHDQGUHWXUQWRWKHFRPPDQGSURPSWW\SH&WUO&!;'RQRWKROGWKH
&RQWURONH\ZKHQ\RXW\SHWKH;
1$97(;GLUHFWLYHV
:KLOHLQ1$97(;PRGHDIHZFRPPDQGGLUHFWLYHVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!,,QYHUWUHFHLYHG0$5.63$&(VLJQDOV
&WUO&!;([LW1$97(;DQGUHWXUQWR&RPPDQGPRGH
3$&72537/37)(&
3DFWRU2SHUDWLRQ
3DFWRURSHUDWLRQLVSRVVLEOHLQWZRPRGHV7KHILUVWPRGHQRUPDOO\UHIHUUHGWRDV$54PRGHLVD
³FRQQHFWHG´RUOLQNHGPRGHZKHUHWZRVWDWLRQVDUHLQFRQYHUVDWLRQZLWKHDFKRWKHU&RPSOHWHHUURU
FKHFNLQJRFFXUVLQWKLVPRGHDQGWKHUHFHLYLQJVWDWLRQZLOOUHTXHVWUHWUDQVPLVVLRQRIDQ\GDWDIUDPHV
FRQWDLQLQJHUURUV7KH.$0 ;/ XVHVPHPRU\$54LQWKLVPRGHWRLPSURYHUHFHSWLRQ
7KHVHFRQGPRGHRIRSHUDWLRQWUDQVPLWVGDWDLQDQXQFRQQHFWHGRUXQOLQNHGVWDWHDOORZLQJVHYHUDO
VWDWLRQVWRFRS\WKHWUDQVPLVVLRQ7KLVLVUHIHUUHGWRDVWKH)(&PRGHDQGLVWKHPRGHXVHGIRUFDOOLQJ
&4RUIRURWKHU3DFWRU)(&EURDGFDVWWUDQVPLVVLRQV
5HFHLYLQJVWDWLRQVGRQRWXVHPHPRU\$54WRFRS\)(&WUDQVPLVVLRQVWKHUHIRUHDIUDPHPXVWEH
FRSLHGZLWKRXWDQ\HUURUVLQRUGHUWREHSULQWHG,WLVSRVVLEOHWKDWFRPSOHWHIUDPHVPD\EHPLVVHG
ZKHQUHFHLYLQJ)(&EURDGFDVWV
7XQLQJ3DFWRUVLJQDOV
:KHQWXQLQJLQD3DFWRUVLJQDODGMXVWWKHUHFHLYHUVRSHUDWLQJIUHTXHQF\VRWKDWWKHWXQLQJEDUJUDSKRQ
WKH.$0;/ OLJKWVEULJKWHVWDWERWKHQGV
0RQLWRULQJ3DFWRU)(&
(QWHULQJWKHFRPPDQG3$&725HQWHUVWKH3DFWRU6WDQGE\PRGHDQGGLVSOD\VWKHPHVVDJH
3$&72567$1'%<!
127( 6LQFHWKH021,725FRPPDQGLV21E\GHIDXOW3DFWRU)(&RU$54WUDQVPLVVLRQVIURP
RWKHUVWDWLRQVFDQEHPRQLWRUHGDQGGLVSOD\HG
&DOOLQJ&4RU7UDQVPLWWLQJ)(&
7RFDOO&4VWDUWIURPWKH3DFWRU6WDQGE\PRGHDVLQWKHGLUHFWLRQVDERYH7REHJLQWUDQVPLWWLQJ
W\SH&WUO&!77KHWUDQVPLWWHUZLOOWXUQRQDQGW\SHGFKDUDFWHUVDUHWUDQVPLWWHGLQ3DFWRU)(&
PRGH7\SHD&4PHVVDJHWKHQW\SH&WUO&!(:KHQWKHPHVVDJHKDVEHHQWUDQVPLWWHGWKH.$0
;/ ZLOOUHWXUQWRWKH6WDQGE\PRGHDQGZLOOEHUHDG\WRUHVSRQGDXWRPDWLFDOO\LIDQRWKHUVWDWLRQ
DWWHPSWVWROLQN$W\SLFDO3DFWRU&4PLJKWEH
&4&4&4GH1‘.11‘.11‘.1
&4&4&4GH1‘.11‘.11‘.1
&4&4&4GH1‘.11‘.11‘.1
...
/LQNLQJWRDQRWKHUVWDWLRQ
:KHQPRQLWRULQJ3DFWRUVLJQDOVVWDWLRQVPD\EHVHHQWUDQVPLWWLQJ&4PHVVDJHV7RLVVXHDOLQN
UHTXHVWWRWKDWVWDWLRQILUVWUHWXUQWR&RPPDQGPRGHE\W\SLQJ&WUO&!;
1H[WHQWHUWKH3$&725FRPPDQGDQGLQFOXGHWKHFDOOVLJQRIWKHVWDWLRQKHDUGWUDQVPLWWLQJWKH&4
PHVVDJH7KH.$0 ;/ ZLOOVWDUWWUDQVPLWWLQJDOLQNUHTXHVWWRWKHRWKHUVWDWLRQ,IWKHRWKHUVWDWLRQKDV
SURSHUO\DFNQRZOHGJHGWKHOLQNUHTXHVWPHVVDJH³/,1.('72[[[[[[´ZLOOEHGLVSOD\HG6LQFH
\RXLQLWLDWHGWKHOLQN\RXDUHWKH,QIRUPDWLRQ6HQGLQJ6WDWLRQ,66DQGPD\EHJLQHQWHULQJD
PHVVDJH:KHQILQLVKHGDQGUHDG\WRUHFHLYHIURPWKHRWKHUVWDWLRQW\SH&WUO&!($FKDQJHRYHU
UHTXHVWZLOOEHVHQWWRWKHRWKHUVWDWLRQDOORZLQJWKHPWREHFRPHWKH,66VWDWLRQVRWKDWPHVVDJHV
WKH\VHQGFDQEHUHFHLYHGDQGGLVSOD\HG
:KHQWKHFRQYHUVDWLRQZLWKWKHRWKHUKDVEHHQFRPSOHWHGRQHRIWKHWZRVWDWLRQVPXVW³EUHDNWKH
OLQN´RUGLVFRQQHFW7RGLVFRQQHFWW\SH&WUO&!',WFDQEHHQWHUHGZKHQ\RXDUHHLWKHUWKH,56RU
WKH,66,I\RXDUHWKH,56DWWKHWLPHWKHGLVFRQQHFWFRPPDQGLVHQWHUHGDFKDQJHRYHUUHTXHVWZLOO
EHVHQWILUVWDQGWKHQSHUIRUPWKHGLVFRQQHFWVHTXHQFH
127( :KHQDWWHPSWLQJWROLQNZLWKDVWDWLRQZKLFKLVDORQJGLVWDQFHDZD\WKH3DFWRUORQJSDWK
OLQNRSWLRQPD\QHHGWREHXVHG,WLVXVXDOO\RQO\EHUHTXLUHGZKHQWKHRWKHUVWDWLRQLVPRUHWKDQ
DERXWPLOHVDZD\7RLVVXHDORQJSDWK3DFWRUOLQNSUHFHGHWKHFDOOVLJQRIWKHVWDWLRQZLWKDQ
H[FODPDWLRQSRLQWHJ3$&725.%‘1<.
37/,67(10RGH
(QWHUWKH3/,67(1FRPPDQGWRHQWHU3$&725PRQLWRURQO\PRGH,WDOORZVUHFHSWLRQRI3$&725
)(&RU$543DFWRUVLJQDOVEXWZLOOQRWDOORZWUDQVPLWWLQJDQGQRUHVSRQVHZLOOEHVHQWWRDQ\3DFWRU
OLQNUHTXHVWV
7RH[LWDQGUHWXUQWRFRPPDQGPRGHW\SH&WUO&!;
3DFWRU'LUHFWLYHV
:KLOHLQ3DFWRUPRGHVHYHUDOFRPPDQGGLUHFWLYHVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!$$ERUWDOLQNRUDERUWDQDWWHPSWWROLQNDIWHUWKHILUVWLQYDOLGUHVSRQVHFRGH
&WUO&!''LVFRQQHFW
&WUO&!(&KDQJHRYHUIURP,66WR,56$54PRGHZKHQWUDQVPLWEXIIHULVHPSW\5HWXUQWR
UHFHLYHZKHQWUDQVPLWEXIIHULVHPSW\)(&0RGH
&WUO&!5&KDQJHRYHUIURP,66WR,56$54PRGH&KDQJHRYHULVLPPHGLDWHLIGDWDKDVQRWDOO
EHHQWUDQVPLWWHGLWVWD\VLQWKHWUDQVPLWEXIIHU
&WUO&!76HL]HWKHOLQNLI,56$54PRGH(QWHUWUDQVPLWPRGH)(&PRGH
&WUO&!;'LVFRQQHFWWKHOLQNLIOLQNHGGLVFDUGDQ\GDWDLQWKHWUDQVPLWEXIIHUDQGUHWXUQWR
FRPPDQGPRGH
&WUO&!6HWDXWRPDWLFEDXGUDWH
&WUO&!6ZLWFKWREDXG
&WUO&!6ZLWFKWREDXG
&WUO&!&WUO7!7RJJOH75$&(PRGH212))
*725DQG*021
*725RSHUDWHVDVDV\QFKURQRXV$54PRGHOLNH$0725DQG3DFWRUZLWKDQ$54F\FOHRI
VHFRQGVDQGEDXGUDWHVRIRUEDXG$OOGDWDIUDPHVDUHVHFRQGVLQGXUDWLRQDQG
FRQWDLQRQHFRQWUROE\WHDQGWZRFKHFNVXPE\WHV&5&'DWDIUDPHVFRQWDLQGDWDE\WHVDW
EDXGGDWDE\WHVDWEDXGDQGGDWDE\WHVDWEDXG$FNQRZOHGJHPHQWVDUHVHFRQGV
LQGXUDWLRQ7KHHIIHFWLYHSHUIRUPDQFHRIWZRVWDWLRQVOLQNHGLQ*725UHOLHVRQWKHFRPELQHGXVHRI
IRUZDUGHUURUFRUUHFWLRQGDWDLQWHUOHDYLQJDQGLWV$54F\FOHZLWK&5&FKHFNLQJ
*725DFWLYLW\FDQEHIRXQGRQDOOWKH+)EDQGVRQIUHTXHQFLHVZKHUH$0725DQG3DFWRUPRGHV
DUHXVHG)RUH[DPSOHRQPHWHUVDFWLYLW\FDQJHQHUDOO\EHIRXQGDVOLVWHGEHORZ
1RWHWKDW*7253DFWRUDQG$0725PD\WHQGWRRYHUODS
&:0+]
$0725*7253DFWRU0+]
577<0+]
3DFNHW0+]
*7252SHUDWLRQ
7KH*725SURWRFROLVDOLQNHGPRGHZKHUHWZRVWDWLRQVFRPPXQLFDWHZLWKHDFKRWKHU$OWKRXJKWKH
*725PRGHGRHVQRWLQFRUSRUDWHDEURDGFDVWPRGH*725XVHV$0725)(&IRULWVEURDGFDVWV
IURP*7256WDQGE\VXFKDVZKHQFDOOLQJ&4,IWKH021,725FRPPDQGLV21ZKHQHQWHULQJ
WKH*725PRGH$0725)(&WUDQVPLVVLRQVFDQEHPRQLWRUHG
7KH*725PRGHXVHVWKH0$5.DQG63$&(WRQHV7KHGHIDXOWYDOXHVIRUWKHPDUH0$5.
DQG63$&(7KH\FDQEHFKDQJHGWRPDNHEHWWHUXVHRIILOWHULQJDQGRU,)VKLIWWXQLQJLQWKH
UDGLR
(QWHULQJWKHFRPPDQG*725HQWHUVWKH*7256WDQGE\PRGHDQGGLVSOD\VWKHPHVVDJH
*72567$1'%<!
DQGZLOOEHUHDG\WRUHVSRQGWROLQNUHTXHVWVDGGUHVVHGWRWKH0<*7&$//FDOOVLJQ
,I\RXQRZWXQH\RXU.$0 ;/ WRDVWDWLRQWUDQVPLWWLQJ$0725)(&\RX¶OOEHDEOHWRFRS\WKDW
WUDQVPLVVLRQ<RX¶OODOVREHUHDG\WRUHFHLYHDOLQNUHTXHVWLQ*725PRGHIURPDQRWKHUVWDWLRQ
7RFDOO&4W\SH&WUO&!77KH.$0 ;/ ZLOOHQWHUWKH$0725)(&WUDQVPLWPRGHZLOONH\WKH
UDGLRDQGVWDUWWUDQVPLWWLQJ(QWHUD&4PHVVDJHLQFOXGLQJ\RXUFDOOVLJQDVVHWE\0<*7&$//RQ
WKHNH\ERDUG,WLVLPSRUWDQWWRLQGLFDWHLQWKHPHVVDJHWKDW\RXDUHDVNLQJIRUD*725FRQWDFW)RU
LQVWDQFH\RXPLJKWVHQG
&4&4&4'(.%‘1<..%‘1<.²*725
&4&4&4'(.%‘1<..%‘1<.²*725
36($54,1*72502'(
...
$IWHUFRPSOHWLQJWKH&4PHVVDJHW\SH&WUO&!(7KLVZLOOUHWXUQWKH.$0 ;/ WR*7256WDQGE\
PRGHDIWHUDOORIWKHPHVVDJHKDVEHHQWUDQVPLWWHG
7KH$54%%6FRPPDQGPXVWEHVHWWR2))WREHDEOHWRPDQXDOO\LQLWLDWHWUDQVPLWWLQJLQ*725
PRGH,I$54%%6LV21WKH3%%6KDVFRQWURORIWUDQVPLWWLQJDQGOLQNLQJVWDWLRQVZLOOEH
DXWRPDWLFDOO\FRQQHFWHGWRWKH3%%6
7XQLQJ*725
*725VLJQDOVDUHVLPLODUWR$0725RU3DFWRUVLJQDOVLQWKDW0$5.DQG63$&(WRQHVDUHXVHG
7KH%$5*5$3+LQGLFDWRUZLOOEHOLWDWERWKHQGVZKHQWKHUHFHLYHULVSURSHUO\WXQHG:KHQOLQNHG
WRDQRWKHU*725VWDWLRQWKH&21/('ZLOOEHOLJKWHG7KHVSHHG/('LVXVHGLQ*725WRLQGLFDWH
*725VSHHGJUHHQIRUEDXG\HOORZIRUEDXGDQGUHGIRUEDXG
0RQLWRULQJ*725
,QWKH*7256WDQGE\PRGH*725&4FDOOVRURWKHU*725)(&EURDGFDVWVZKLFKXVHWKH
$0725)(&PRGHFDQEHPRQLWRUHG,QRUGHUWRPRQLWRUWZRVWDWLRQVWKDWDUHOLQNHGWRHDFKRWKHU
LQ*725PRGHXVHWKH*021FRPPDQG
/LQNLQJWRDQRWKHUVWDWLRQLQ*725
:KHQPRQLWRULQJ*725VLJQDOVVWDWLRQVPD\EHVHHQWUDQVPLWWLQJ&4PHVVDJHV7RLVVXHDOLQN
UHTXHVWWRWKDWVWDWLRQILUVWUHWXUQWR&RPPDQGPRGHE\W\SLQJ&WUO&!;
1H[WHQWHUWKH*725FRPPDQGDQGLQFOXGHWKHFDOOVLJQRIWKHVWDWLRQKHDUGWUDQVPLWWLQJWKH&4
PHVVDJH7KH.$0 ;/ ZLOOVWDUWWUDQVPLWWLQJDOLQNUHTXHVWWRWKHRWKHUVWDWLRQ,IWKHRWKHUVWDWLRQKDV
SURSHUO\DFNQRZOHGJHGWKHOLQNUHTXHVWPHVVDJH³/,1.('72[[[[[[´ZLOOEHGLVSOD\HG6LQFH
\RXLQLWLDWHGWKHOLQN\RXDUHWKH,QIRUPDWLRQ6HQGLQJ6WDWLRQ,66DQGPD\EHJLQHQWHULQJD
PHVVDJH:KHQILQLVKHGDQGUHDG\WRUHFHLYHIURPWKHRWKHUVWDWLRQW\SH&WUO&!($FKDQJHRYHU
UHTXHVWZLOOEHVHQWWRWKHRWKHUVWDWLRQDOORZLQJWKHPWREHFRPHWKH,66VWDWLRQVRWKDWPHVVDJHV
WKH\VHQGFDQEHUHFHLYHGDQGGLVSOD\HG
:KHQWKHFRQYHUVDWLRQZLWKWKHRWKHUKDVEHHQFRPSOHWHGRQHRIWKHWZRVWDWLRQVPXVW³EUHDNWKH
OLQN´RUGLVFRQQHFW7RGLVFRQQHFWW\SH&WUO&!',WFDQEHHQWHUHGZKHQ\RXDUHHLWKHUWKH,56RU
WKH,66,I\RXDUHWKH,56DWWKHWLPHWKHGLVFRQQHFWFRPPDQGLVHQWHUHGDFKDQJHRYHUUHTXHVWZLOO
EHVHQWILUVWDQGWKHQSHUIRUPWKHGLVFRQQHFWVHTXHQFH
6SHHGFKDQJHV
7KHGDWDUDWHLVDXWRPDWLFDOO\VHOHFWHGLQ*725EDVHGRQWKHTXDOLW\RIWKHOLQNEHWZHHQWKHWZR
VWDWLRQV$OLQNZLOODOZD\VEHJLQDWEDXG,IWKHUHFHLYLQJVWDWLRQWKHQGHWHFWVDQXPEHURI
FRUUHFWO\UHFHLYHGIUDPHVDVVHWE\*783LWZLOOUHTXHVWDVSHHGFKDQJHXSWREDXG:KHQ
RSHUDWLQJDWEDXGRUEDXGWKHUHFHLYLQJVWDWLRQZLOOUHTXHVWDORZHUVSHHGZKHQLWUHFHLYHVD
QXPEHURILQFRUUHFWIUDPHVLQDURZDVVHWE\*7'2:1
:KLOHOLQNHGWRDQRWKHUVWDWLRQWKHUHFHLYLQJVWDWLRQ,56FRQWUROVWKHVSHHGRIWKHOLQN,I\RXDUHWKH
,56\RXFDQIRUFHWKHRWKHUVWDWLRQWRVHQGDWEDXGE\XVLQJWKH&WUO&!GLUHFWLYH7KHVSHHG
FKDQJHUHTXHVWZLOOEHVHQWWRWKHRWKHUVWDWLRQLQWKHUHFHLYHDFNQRZOHGJPHQWV2QFHWKHVSHHG
FKDQJHRFFXUVWKH.$0 ;/ ZLOOQRWGLUHFWWKHRWKHUVWDWLRQWRVSHHGXSDJDLQXQWLOWKHQH[W
FKDQJHRYHUKDVRFFXUUHGRUWKHDXWRVSHHGGLUHFWLYH&WUO&!KDVEHHQHQWHUHG
,IWKHVSHHGFKDQJHIDLOVWRRFFXUIRUDQ\UHDVRQWKHVSHHGZLOOUHYHUWWRWKHRQHXVHGSULRUWRWKH
&WUO&!GLUHFWLYH
,I\RXDUHWKH,56DQGZLVKWRLQFUHDVHWKHGDWDVSHHGXVHWKH&WUO&!GLUHFWLYHWRVZLWFKWR
EDXGRUWKH&WUO&!GLUHFWLYHWRVZLWFKWREDXG7KHVSHHGFKDQJHUHTXHVWZLOOEHVHQWWRWKH
RWKHUVWDWLRQDQGLIWKHUHTXHVWLVVXFFHVVIXODUHTXHVWGHFUHDVHWKHGDWDVSHHGZLOOQRWDXWRPDWLFDOO\
EHVHQWHYHQLIWKHEDQGFRQGLWLRQVFKDQJHXQOHVVWKHDXWRVSHHGGLUHFWLYH&WUO&!KDVEHHQ
HQWHUHG,WLVUHFRPPHQGHGWKDWWKHDXWRVSHHGPRGHEHXVHGVRWKDWWKHOLQNZRQ¶WIDLOLPPHGLDWHO\
GXHWRFKDQJHVLQEDQGFRQGLWLRQV:KHQGDWDEHWZHHQVWDWLRQVLVQRWIORZLQJDWDKLJKHUVSHHGLWZLOO
DXWRPDWLFDOO\EHGHFUHDVHGWRUHWDLQWKHOLQNDQGSDVVWKHGDWDDWDORZHUVSHHG
*725PDLOER[
7KH.$0 ;/ DOORZVRWKHUVWDWLRQVWRDFFHVVLWV3%%6PDLOER[LQ*725PRGHZKHQLWV$54%%6
FRPPDQGKDVEHHQVHWWR21DQGLWLVLQ*7256WDQGE\PRGH:KHQ$54%%6LVRQWKH3%%6
FRQWUROVWUDQVPLWWLQJDQGDQ\UHFHLYHGOLQNUHTXHVWVZLOOEHDQVZHUHGE\WKH3%%6
)RUPDWWLQJ'DWD
:KHQRSHUDWLQJ*725WKHIROORZLQJFRPPDQGVZLOODSSO\LQIRUPDWWLQJWUDQVPLWWHGGDWD
&5$''DGGVD&5DIWHUHYHU\&5VHQWIURPWKHWHUPLQDO
/)$''DGGVD/)DIWHUHYHU\&5VHQWIURPWKHWHUPLQDO
&5683VXSSUHVVHV(9(5<27+(5FRQVHFXWLYH&5
/)683VXSSUHVVHVDOO/)FKDUDFWHUVLQGDWDVHQWWRWKHWHUPLQDO
5HPHPEHUWKDWWRVHQGVSHFLDOFKDUDFWHUVWRDQRWKHUVWDWLRQWKRVHWKDWDUHGHILQHGDVFRQWURO
FKDUDFWHUVLQWKH.$0;/WKH\PXVWEH³SDVVHG´DVGDWDE\SUHFHGLQJWKHPZLWK&WUO9!LQRUGHU
WRWUDQVPLWWKHP
+LQWVIRU*7252SHUDWLRQ
:KHQFKRRVLQJWRXVHWKH)6.PRGHRIDWUDQVFHLYHUWKH)6.RXWSXWIURPWKH.$0 ;/ PXVWEH
FRQQHFWHGWRWKH)6.LQSXWRIWKHWUDQVPLWWHU7KHDFWXDOWRQHVWUDQVPLWWHGDUHFRQWUROOHGE\UDGLRLQ
WKLVPRGHDQGWKH0$5.DQG63$&(FRPPDQGVLQWKH.$0 ;/ PXVWEHVHWWRPDWFKWKHWRQHV
UHFHLYHG)RULQVWDQFHWKHGHIDXOW0$5.DQG63$&(LQWKH<DHVX)7DUH+]IRU0$5.
DQG+]IRU63$&(
&DXWLRQ:KHQOLQNHGWRDQRWKHUVWDWLRQDQGGHVLUHWREUHDNWKHOLQNXVHWKH&WUO&!$GLUHFWLYH
7KLVGLUHFWLYHZLOODWWHPSWWRVHQGWKHSURSHU457VHTXHQFHWRWKHRWKHUVWDWLRQEXWLIWKH.$0 ;/
UHFHLYHVDQLQYDOLGUHVSRQVHVHTXHQFHXQUHFRJQL]HG&6FRGHLWZLOOLPPHGLDWHO\UHWXUQWR*725
6WDQGE\DQGGLVFDUGDQ\SHQGLQJGDWD:KHQDWWHPSWLQJWREUHDNWKHOLQNZLWKWKH&WUO&!;
GLUHFWLYHWKH.$0 ;/ ZLOODWWHPSWWKH457VHTXHQFHEXWZLOORQO\UHWXUQWRSDFNHWPRGHDIWHU
UHFHLYLQJWKHSURSHUDFNQRZOHGJHPHQW&6FRGHRUDIWHU*7(556DWWHPSWVWREUHDNWKHOLQN7KLV
FRXOGWDNHDORQJWLPH
:KHQDWWHPSWLQJWROLQNWRDQHDUE\VWDWLRQLWLVSRVVLEOHWKDWWKHWUDQVFHLYHUV\RXUVDQGWKHRWKHU
VWDWLRQ¶VPD\QRWVZLWFKIDVWHQRXJKWRSHUPLWDOLQNWRRFFXU
,QWKLVFDVHERWKVWDWLRQVVKRXOGVHWWKHLU7;'725FRPPDQGWRDKLJKHUYDOXHWU\RU7KLV
KDVEHHQSURYHQWRDOORZOLQNVRQYHU\VKRUWSDWKVZLWKYHU\VORZVZLWFKLQJUDGLRV
127( 'RQRWFKDQJH7;'725ZKLOHOLQNHG7KLVLVRQO\SRVVLEOHZLWK+RVWPRGHSURJUDPVEXW
FKDQJLQJWKHVHYDOXHVZKLOHOLQNHGZLOOFDXVHWKHOLQNWRIDLO
%LQDU\)LOHVDQG*725
7KH*725PRGHSURYLGHVFRPSOHWHGDWDWUDQVSDUHQF\DOORZLQJELQDU\ILOHWUDQVIHUVEHWZHHQ*
725VWDWLRQV7KHDELOLW\WRVHQGDQGUHFHLYHELQDU\ILOHVLQWKLVPRGHZLOOGHSHQGRQWKHWHUPLQDO
SURJUDPXVHG6LQFH*725SURYLGHVFRPSOHWHHUURUGHWHFWLRQDQGFRUUHFWLRQELQDU\ILOHVVKRXOGEH
VHQWIURPWKHWHUPLQDOSURJUDPLQDUDZGDWDPRGH²WKDWLVQRHUURUFRUUHFWLRQSURWRFROVXFKDV;
PRGHP
+RVWPRGHSURJUDPVVLPSO\LQFOXGHWKHUDZELQDU\GDWDLQWKHGDWDVWUHDPKRZHYHULIXVLQJD
VWDQGDUGWHOHSKRQHPRGHPW\SHRIFRPPXQLFDWLRQVSURJUDPLWLVSRVVLEOHWRDOORZWKH.$0 ;/ WR
VHQGUDZELQDU\GDWD7RGRWKLVRQFHOLQNHGWRDQRWKHUVWDWLRQLQ*725W\SHWKH&WUO&!%
GLUHFWLYH7KLVSODFHVWKH.$0 ;/ LQDGDWDWUDQVSDUHQWPRGHDOORZLQJ$//FKDUDFWHUVWREH
WUDQVPLWWHG$6&,,RU%,1$5<IURPWKHFRPSXWHU
&$87,21 :KHQWKLVKDVEHHQGRQHQRVSHFLDOFKDUDFWHUVDUHUHFRJQL]HGE\WKH.$0 ;/DQGQR
GLUHFWLYHVDUHDYDLODEOH7KXVW\SLQJ&WUO&!(IRULQVWDQFHZLOO127FDXVHDFKDQJHRYHULWZLOO
VLPSO\WUDQVPLWWKH&WUO&!DQG(DVFKDUDFWHUVWRWKHRWKHUVWDWLRQ7RH[LWWKLVGDWDWUDQVSDUHQF\
PRGHVHQGDPRGHPEUHDNVLJQDO0RVWWHOHSKRQHFRPPXQLFDWLRQVSURJUDPVVXSSRUWWKLVIHDWXUH
3URFRPP3OXVIRULQVWDQFHVHQGVDPRGHPEUHDNZKHQHQWHULQJ$OW%!,I\RXUFRPPXQLFDWLRQV
SURJUDPGRHVQRWVXSSRUWWKHPRGHPEUHDN\RXZLOOQRWEHDEOHWROHDYHWKHGDWDWUDQVSDUHQF\PRGH
7KH.$0 ;/ ZLOODXWRPDWLFDOO\H[LWGDWDWUDQVSDUHQF\LIWKHRWKHUVWDWLRQEUHDNVWKHOLQNRUDQ\WLPH
WKHOLQNHGVWDWHLVH[LWHGGXHWRHUURUVRUWRRPDQ\UHWULHV
6XPPDU\RI*725'LUHFWLYHV
:KLOHLQ*725PRGHVHYHUDOFRPPDQGGLUHFWLYHVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!$$ERUWDOLQNRUDERUWDQDWWHPSWWROLQNDIWHUWKHILUVWLQYDOLGUHVSRQVHFRGH
&WUO&!%(QWHUGDWDWUDQVSDUHQF\PRGHIRUELQDU\ILOHWUDQVIHU
&WUO&!''LVFRQQHFWIURPWKHVWDWLRQ\RXDUHOLQNHGWR$FKDQJHRYHUZLOOEHSHUIRUPHGLIUHTXLUHG
DQGWKH.$0 ;/ ZLOOUHWXUQWR*7256WDQGE\PRGH
&WUO&!($54PRGH&KDQJHRYHUIURP,66WR,56ZKHQDOOSHQGLQJGDWDKDVEHHQWUDQVPLWWHG
)(&PRGH²$0725)(&5HWXUQWRUHFHLYHZKHQWUDQVPLWEXIIHULVHPSW\XVHGZKHQFDOOLQJ&4
&WUO&!5:KHQOLQNHGFKDQJHRYHUIURP,66WR,56LPPHGLDWHO\5HWXUQWRUHFHLYHLPPHGLDWHO\LQ
)(&PRGH
&WUO&!76HL]HWKHOLQNLI,56$54PRGH(QWHU$0725)(&WUDQVPLWPRGH
&WUO&!;'LVFRQQHFWWKHOLQNLIOLQNHG:KHQLQ67$1'%<PRGHGLVFDUGDQ\GDWDLQWKH
WUDQVPLWEXIIHUDQGUHWXUQWRFRPPDQGPRGH
&WUO&!6HWDXWRPDWLFEDXGUDWHVHOHFWLRQ
&WUO&!)RUFHEDXGRSHUDWLRQ,56RQO\
&WUO&!)RUFHEDXGRSHUDWLRQ,56RQO\
&WUO&!)RUFHEDXGRSHUDWLRQ,56RQO\
&WUO&!&WUO7!7RJJOH75$&(PRGH212))
02'(0%5($.([LWGDWDWUDQVSDUHQF\PRGH
36.
$WWKHFRPPDQGSURPSWW\SH36.DQG(17(5
8SRQHQWHULQJ36.PRGHWKHPRGHLQGLFDWLRQLVGLVSOD\HG
!
7KH.$0 ;/ LVQRZLQUHFHLYHPRGHFDQGHFRGHDSURSHUO\WXQHG36.VLJQDODQGZLOOGLVSOD\
PRQLWRUHGLQIRUPDWLRQRQWKHWHUPLQDO
7KHGHIDXOWPRGXODWLRQW\SHLV36.7RVZLWFKWR436.HQWHUWKH&WUO&!4GLUHFWLYH7RUHWXUQWR
36.PRGXODWLRQHQWHU&WUO&!3
7XQLQJ36.6LJQDOV
:KHQILUVWHQWHULQJ36.PRGHWKHWXQLQJEDUJUDSKZLOOGLVSOD\DQDXGLREDQGZLGWKIURP+]WR
+]FHQWHUHGDW+],QWKLVDXGLREDQGZLGWKVHYHUDO36.VLJQDOVPD\EHGHWHFWHG
,IDVLJQDOLVLQGLFDWHGE\WKHOLJKWLQJRI/('QXPEHURQWKHWXQLQJ%$5*5$3+HQWHU&WUO&!
WR]RRPLQWRWKDWVLJQDO7KHDXGLRFHQWHUIUHTXHQF\ZLOOEHDGMXVWHGDFFRUGLQJO\DQGWKHQHZDXGLR
EDQGZLGWKDQGFHQWHUIUHTXHQF\ZLOOEHGLVSOD\HG7KHEDQGZLGWKRIWKH%$5*5$3+GLVSOD\ZLOOEH
QDUURZHGE\DERXWKDOIDIWHUHDFK]RRPLQ,IWKDWVLJQDOLVFHQWHUHGHQWHU&WUO&!WR]RRPLQ
FORVHUWRWKDWVLJQDO
5HFHLYHG36.VLJQDOVFDQDOVREHWXQHGLQE\PDQXDOO\DGMXVWLQJWKHUHFHLYHU6LQFH36.LVD
YHU\QDUURZVLJQDODILQHWXQLQJUDWHRQWKHUHFHLYHUDQGDVWHDG\KDQGLVYHU\KHOSIXO
$36.VTXHOFKFRQWUROLVDFWLYDWHGE\WKH&WUO&!DQG!RUNH\V,QFUHDVHWKHVTXHOFKOHYHOZLWK
&WUO&!!RUGHFUHDVHLWZLWK&WUO&!$GHIDXOWVTXHOFKVHWWLQJLVFRQWUROOHGE\WKHVHWWLQJRIWKH
648(/&+FRPPDQG
7UDQVPLWWLQJ36.
7RWUDQVPLWW\SH&WUO&!77KLVNH\VWKHWUDQVPLWWHUEODQNVWKHEDUJUDSKZKLOHWKH%$5*5$3+
FRPPDQGLVVHWWR5&9DQGWKHWUDQVPLW/('LVOLJKWHG7\SHWKHPHVVDJHWRVHQGDQG&WUO&!(
WRUHWXUQWRUHFHLYHPRGHZKHQWKHPHVVDJHKDVEHHQWUDQVPLWWHG
([LWLQJ36.PRGH
7ROHDYHWKH36.PRGHDQGUHWXUQWR&RPPDQGPRGHW\SH&WUO&!;
36.'LUHFWLYHV
:KLOHLQ36.PRGHVHYHUDOFRPPDQGGLUHFWLYHVDUHDFWLYHDQGFDXVHWKHVHDFWLRQVDVLQGLFDWHG
&WUO&!(5HWXUQWRUHFHLYHPRGHZKHQWKHWUDQVPLWEXIIHULVHPSW\
&WUO&!36HOHFWV36.PRGXODWLRQ
&WUO&!46HOHFWV436.PRGXODWLRQ
&WUO&!55HWXUQWRUHFHLYHPRGHLPPHGLDWHO\,IWKHWUDQVPLWEXIIHULVQ¶WHPSW\UHPDLQLQJGDWD
ZLOOVWD\LQWKHEXIIHU,IVHQWZKLOHVWLOOLQUHFHLYHPRGHZLOOFDXVHDUHV\QFWRWKHVLJQDOFXUUHQWO\
LQWKHFHQWHURIWKHWXQLQJ%$5*5$3+
&WUO&!7(QWHUWUDQVPLWPRGH
&WUO&!&WUO&!&WUO&!&WUO&!&WUO&!&WUO&!&WUO&!&WUO&!
&WUO&!7XQLQJ%$5*5$3+/('SRVLWLRQVWR]RRPLQWRZKHQWXQLQJLQGLYLGXDOVLJQDOV
&WUO&!=RRP,1ZKHQWKHGHVLUHGVLJQDOLVQHDUWKHFHQWHURIWKHWXQLQJEDUJUDSK
&WUO&!;([LWDQGUHWXUQWR&RPPDQGPRGHSDFNHW$Q\GDWDOHIWLQWKHWUDQVPLWEXIIHUDWWKLV
WLPHLVWKURZQDZD\
&WUO&!==RRP287WRVKRZDODUJHUIUHTXHQF\EDQGZLGWKLQWKHWXQLQJ%$5*5$3+
&WUO&!'HFUHDVHVTXHOFKOHYHO
&WUO&!!,QFUHDVHVTXHOFKOHYHO
.DQWURQLFV.$0;/ &RPPDQG6HW
$OO71&FRPPDQGVDUHGRFXPHQWHGEHORZLQDOSKDEHWLFDORUGHU7KHXQGHUOLQHGFKDUDFWHUVLQD
FRPPDQG
VQDPHVKRZWKHVKRUWFXWYHUVLRQRIWKHFRPPDQG5HTXLUHGRURSWLRQDOSDUDPHWHUVDUH
VKRZQDIWHUWKHFRPPDQGQDPHDVDUHDOORZDEOHUDQJHVRIYDOXHVZKHUHDSSURSULDWH
%,7&219^21_2))`
'HIDXOW21
:KHQ21WUDQVPLVVLRQRIELWGDWDLQ&219(56 0RGHLVDOORZHG
:KHQ2))WKHWKGDWDELWLVVWULSSHGVHWWRLQDOOWUDQVPLWWHGDQGUHFHLYHGGDWD
.$1RGH',*,3($7DQG3%%6RSHUDWLRQVDUHXQDIIHFWHGE\WKLVFRPPDQG
6HHDOVR75$16
$%$8'QQ ________
'HIDXOW
6HWVWKHEDXGUDWHXVHGIRUGDWDWKURXJKWKH71&VHULDOSRUW
:KHQVHWWRWKH$872%$8' URXWLQHZLOOUXQXSRQSRZHUXS7KLVURXWLQHORRNVIRUDQDVWHULVN
FKDUDFWHUIURPWKHDWWDFKHGFRPSXWHUWRVHWWKH$%$8'SDUDPHWHU:KHQWKHDVWHULVNLVUHFHLYHG
IURPWKHFRPSXWHURUWHUPLQDO$%$8'ZLOOEHVHWWRPDWFKWKHEDXGUDWHRIWKHWHUPLQDO
:KHQ$%$8'LVFKDQJHGIURPRQHEDXGUDWHWRDQRWKHUD62)7UHVHWLVUHTXLUHGWRHQDEOHWKHQHZ
VHWWLQJ7KLVLVGRQHHLWKHUE\VHQGLQJD5(6(7FRPPDQGRUSRZHULQJWKHXQLW2))DQGEDFN21
7RPDNHDFKDQJHRIWKHFRPPXQLFDWLRQEDXGUDWHEHWZHHQWKHWHUPLQDODQGWKH.$0 ;/FKDQJHWKH
$%$8'VHWWLQJILUVWWKHQFKDQJHWKHEDXGUDWHVHWWLQJLQWKHWHUPLQDOSURJUDPLQWKHFRPSXWHU
,IDIWHUFKDQJLQJWKH$%$8'VHWWLQJWKHWHUPLQDOFDQQRWEHVHWWRWKHVDPHEDXGUDWHDKDUGUHVHW
ZLOOEHUHTXLUHGZKLFKZLOOHUDVH$//SDUDPHWHUFKDQJHVUHWXUQLQJWKHPWRIDFWRU\GHIDXOWYDOXHV
WRDOORZWKH.$0 ;/ WREHUHLQLWLDOL]HG6HH+$5'5(6(7VHFWLRQ
6HHDOVR5(6(75(6725(
$0725^[[[[^[[[[[``
,PPHGLDWH
(QWHULQJWKH$0725FRPPDQGDORQHHQWHUVWKH$072567$1'%<PRGH,Q67$1'%<PRGH
WKH.$0 ;/ FDQUHVSRQGWRDOLQNUHTXHVWIURPDQRWKHUVWDWLRQZKHQWKHUHTXHVWLVDGGUHVVHGWRDQ\
RILWV0<6(/&$/YDULDEOHV,WFDQGLVSOD\UHFHLYHG02'(%)(&VLJQDOVRUFDQWUDQVPLW02'(
%LI$54%%6LV2))67$1'%< PRGHFDQDOVREHXVHGWRPRQLWRUIRULGOH)5((VLJQDOVIURP
FRPPHUFLDO6,725VKRUHVWDWLRQVVXFKDV:/2RU*OREH:LUHOHVV
(QWHULQJ$0725DQGWKH6(/&$/RIDQRWKHUVWDWLRQDWWKHFRPPDQGSURPSWFPGZLOOVWDUWDOLQN
VHTXHQFHWRWKDWVWDWLRQ
7KH$0725PRGHLQWKH.$0 ;/ LVFRPSDWLEOHZLWKLWVFRPPHUFLDOFRXVLQFDOOHG6,725
6HHDOVR$54%%6$54,'$547,0($8726757&$1/,1(&:,')(&)5((48$/
/$07250,66&+$50<*528360<6(/&$/302'(5(3+$6(7;'7257;')(&
DQGWKH$0725DQG+)(0$,/VHFWLRQVRIWKH23(5$7,1*02'(6FKDSWHU
$1$/2*
,PPHGLDWH
7KHUHVSRQVHWRWKH$1$/2*FRPPDQGLVLQWKHIROORZLQJIRUP
$1$1$1$1$1$1$1$1
'LVSOD\VDGHFLPDOQXPEHUDVVSHFLILHGLQWKHFRPPDQG5$1*(IRUHDFKRIHLJKWDQDORJLQSXWVWR
WKH7(/(0(75<SRUW
7KHGHFLPDOYDOXHFRUUHVSRQGVWRDQLQSXWYROWDJHLQWKHUDQJHRIWRYROWV7KHGHFLPDO
YDOXHUDQJHRIHDFKDQDORJLQSXWFDQEHVHWZLWKWKH5$1*(FRPPDQG
'DWDFDQEHJDWKHUHGIURPDUHPRWHVLWHE\VXFFHVVIXOO\FRQQHFWLQJWR0<5(027(DQGWKHQ
LVVXLQJWKH$1$/2*FRPPDQG
$SDFNHWEHDFRQFRQWDLQLQJVDPSOHVRIWKH$1$/2*LQSXWVFDQEHWUDQVPLWWHGLQDWUHJXODU
LQWHUYDOVDVSHFLILHGE\WKH7(/(0(75<FRPPDQG
6HHDOVR0<5(027(7(/(0(75<5$1*(DQG5(027($&&(66LQWKH23(5$7,1*
02'(6FKDSWHU
$54%%6^21_2))`
'HIDXOW2))
:KHQVHWWR21WKH3%%6ZLOODXWRPDWLFDOO\UHVSRQGZKHQRWKHUVWDWLRQVOLQNWRWKH.$0 ;/ZKHQ
LWLVLQ67$1'%<VWDWHLQWKH$0725*7253$&725RU725$54PRGHV
:KHQ2))WKH3%%6FDQRQO\EHDFFHVVHGLQSDFNHWPRGH
1RWHLI$54%%6LV21WUDQVPLWWLQJLVFRQWUROOHGE\WKH3%%6DQGFDQQRWEHHQDEOHGPDQXDOO\
IURPWKHWHUPLQDO
6HHDOVR$54,'3%%6
$54,'QQ PLQXWHV
'HIDXOW
6HWVWKHWLPHLQWHUYDOIRUDQDXWRPDWLF&:,'ZKHQRSHUDWLQJ$0725*725RU3$&725$54
PRGHV
7KH&:,'FRQWDLQVWKHWH[WDVVHWLQWKH&:,'7(;7FRPPDQGDQGLVWUDQVPLWWHGDWWKHVSHHGVHW
E\WKH&:63(('FRPPDQG
6HWWLQJ$54,'WRGLVDEOHVWKHDXWRPDWLF,'
6HHDOVR$54%%6&:,'&:,'7(;7
$547,0(QQ 'HIDXOW
6HWVWKHWLPHRXWLQWHUYDOZKHQDWWHPSWLQJWROLQNWRDQRWKHUVWDWLRQLQ$0725$54PRGH7KH
LQWHUYDOLVVHWLQLQFUHPHQWVRI$54F\FOHVDSSUR[LPDWHO\VHFRQGV
6HHDOVR$0725
$6&%$8'QQ EDXG
'HIDXOW
6HWVWKHGHIDXOWEDXGUDWHLQ$6&,,PRGHZKHQWKH$6&,,FRPPDQGLVHQWHUHGZLWKQREDXGUDWH
VSHFLILHG
6HHDOVR$6&,,
$6&,,>Q@Q EDXG
,PPHGLDWH
(QWHUV$6&,,PRGH,IWKHRSWLRQDOYDOXHQLVVSHFLILHG$6&,,PRGHLVVWDUWHGDWWKDWEDXGUDWH
:KHQWKH$6&,,FRPPDQGLVHQWHUHGDORQHWKHEDXGUDWHVSHFLILHGLQWKH$6&%$8'FRPPDQGLV
XVHG
6HHDOVR$6&%$8'$8726757&$1/,1(302'(DQGWKH$6&,,VHFWLRQRIWKH23(5$7,1*
02'(6FKDSWHU
$872&5QQ FKDUDFWHUV
'HIDXOW
$FDUULDJHUHWXUQ&5!FKDUDFWHULVDXWRPDWLFDOO\LQVHUWHGDIWHUQFKDUDFWHUVDUHWUDQVPLWWHGLQWKH
577<$6&,,$0725*725RU3$&725PRGHV6HWWLQJ$872&5WRGLVDEOHVDXWRPDWLF
FDUULDJHUHWXUQV
$872/)^21_2))`
'HIDXOW21
:KHQVHWWR21DOLQHIHHGLVDGGHGDIWHUHDFKFDUULDJHUHWXUQLQGDWDVHQWWRWKHWHUPLQDO
:KHQVHWWR2))OLQHIHHGFKDUDFWHUVZLOOQRWEHDGGHG
,IWKHWHUPLQDOGRHVQRWDXWRPDWLFDOO\DGYDQFHWRDQHZOLQHDIWHUDFDUULDJHUHWXUQLVUHFHLYHGDQGOLQH
RYHUSULQWLQJRFFXUVVHWWKLVFRPPDQGWR21
7KLVFRPPDQGDIIHFWVRQO\WKHGDWDVHQWWRWKHWHUPLQDOQRWGDWDVHQWWRWKHUDGLR
6HHDOVR&5/)$''
$8726757^21_2))`
'HIDXOW2))
:KHQVHWWR21DQGRSHUDWLQJLQ577<RU$6&,,PRGHGLVSOD\RIUHFHLYHGLQIRUPDWLRQZLOORQO\
VWDUWDIWHUWKHFKDUDFWHUVVSHFLILHGLQWKH0<$87267FRPPDQGKDYHEHHQUHFHLYHG'LVSOD\ZLOO
FRQWLQXHXQWLOIRXU1VDUHUHFHLYHGWRVLJQLI\WKHHQGRIWKHPHVVDJHRUZKHQWKHUHFHLYHVLJQDOKDV
EHHQORVWIRUVHFRQGV
,QWKH$0725RU)(&PRGHVRQO\$07256(/)(&PHVVDJHVFRQWDLQLQJDQ\RIWKH6(/&$/VDV
VSHFLILHGLQWKH0<6(/&$/RU0<*5283FRPPDQGVZLOOEHGLVSOD\HG$ORVVRIORFNZLOOFDXVH
GLVSOD\RIUHFHLYHGGDWDWRVWRS
:KHQVHWWR2))DOOFKDUDFWHUVDUHGLVSOD\HGZKHQUHFHLYHG
6HHDOVR)(&0<$872670<*52830<6(/&$/
$;/9^21_2))`
0XOWL3RUW
'HIDXOW2121
3URYLGHVFRPSDWLELOLW\ZLWKDOONQRZQSDFNHWXQLWVLPSOHPHQWLQJWKH$;SURWRFRO
:KHQVHWWR21/HYHO9HUVLRQSURWRFROLVLPSOHPHQWHGDQGWKH71&ZLOODXWRPDWLFDOO\DGDSWWR
ZKLFKHYHUYHUVLRQWKHFRQQHFWLQJVWDWLRQLVXVLQJ
:KHQVHWWR2))/HYHO9HUVLRQLVLPSOHPHQWHG6HWWKLVFRPPDQGWR2))ZKHQGLJLSHDWLQJ
WKURXJKRWKHUXQLWVZKLFKGRQRWGLJLSHDWYHUVLRQSDFNHWV6HWWKLVFRPPDQG2))ZKHQXVLQJ
VHYHUDOGLJLSHDWHUVQRWQRGHVWRVHQGSDFNHWVRUZKHQFRQGLWLRQVDUHPDUJLQDOEHWZHHQWKHWZR
VWDWLRQVLQYROYHG
127( &KDQJLQJWKLVVHWWLQJDIWHUFRQQHFWLQJWRDQRWKHUVWDWLRQZLOOKDYHQRHIIHFWRQWKHFXUUHQW
FRQQHFWLRQ
7KHPDMRUGLIIHUHQFHLQ9DQG9SURWRFROLVWKHPHWKRGXVHGWRKDQGOHUHWULHV,QWKHFRQQHFWHG
PRGHLIDSDFNHWLVVHQWDQGQRWDFNQRZOHGJHG9HUVLRQZLOOUHVHQGWKHHQWLUHSDFNHWDQGWKHQ
GLVFRQQHFWLIWKH5(75<FRXQWLVUHDFKHG9HUVLRQZLOOILUVWVHQGDSROOWKHUHVSRQVHWRWKLVSROO
ZLOOGHWHUPLQHLIWKHSDFNHWZDVUHFHLYHG,WLVSRVVLEOHWKDWWKH$&.ZDVFROOLGHGZLWKDQGWKHUHIRUH
WKHGDWDSDFNHWGRHVQRWQHHGWREHUHVHQW,IWKH$&.VKRZVWKDWWKHGDWDSDFNHWZDVQRWUHFHLYHGLW
ZLOOEHUHWUDQVPLWWHG(DFKWLPHDSROOLVDQVZHUHGWKH75,(6FRXQWLVUHVHWWR,IWKH5(75<FRXQW
LVUHDFKHGYHUVLRQZLOODWWHPSWWRUHFRQQHFWXQOHVV5(/,1.LV2)),IWKHUHFRQQHFWDWWHPSWLV
XQVXFFHVVIXOWKHQYHUVLRQZLOOLVVXHDGLVFRQQHFW
6HHDOVR5(/,1.5(75<75,(6
)RUPRUHLQIRUPDWLRQVHHWKHERRN$;³$PDWHXU3DFNHW5DGLR/LQN/D\HU3URWRFRO9HUVLRQ´
2FWREHUZKLFKFDQEHREWDLQHGIURPWKH$55/
$;'(/$<QQQ 0XOWL3RUW
'HIDXOW
7KHYDOXHRIQLVWKHQXPEHURIPLOOLVHFRQGLQWHUYDOVWRZDLWLQDGGLWLRQWR7;'(/$<DIWHU
NH\LQJWKHWUDQVPLWWHUDQGEHIRUHGDWDLVVHQW
7KLVDGGLWLRQDONH\XSGHOD\PD\EHQHHGHGZKHQRSHUDWLQJSDFNHWWKURXJKDVWDQGDUGYRLFHDXGLR
UHSHDWHU
6HHDOVR$;+$1*
$;+$1*QQQ 0XOWL3RUW
'HIDXOW
:KHQDXGLRUHSHDWHUVZLWKDORQJKDQJWLPHDUHXVHGLQWKHSDFNHWSDWKWKLVFRPPDQGFDQEHXVHGWR
E\SDVVDGGHGNH\XSGHOD\VSHFLILHGE\WKH$;'(/$<FRPPDQG,IDSDFNHWKDVEHHQKHDUGZLWKLQ
WKH$;+$1*SHULRGLQGLFDWLQJWKDWWKHUHSHDWHULVVWLOOWUDQVPLWWLQJLWZLOOQRWDGGWKH$;'(/$<
WRWKHNH\XSWLPHRILWVUHVSRQVHSDFNHW
(DFKQLQFUHPHQWVSHFLILHVPLOOLVHFRQGRIGHOD\
6HHDOVR$;'(/$<
%$5*5$3+^21_2))_5&9`
'HIDXOW5&9
:KHQVHWWR21WKHWXQLQJEDUJUDSKLVDFWLYHGXULQJUHFHLYHDQGWUDQVPLW
:KHQVHWWR2))WKHWXQLQJEDUJUDSKLVGLVDEOHGDQGZLOOQRWOLJKW
:KHQVHWWR5&9WKHWXQLQJEDUJUDSKOLJKWVLQUHFHLYHPRGHRQO\
1RWH ,I+%$8'LVVHWWR]HURIRUSRUWWKHWXQLQJEDUJUDSKZLOOQRWOLJKWLQSDFNHWPRGH,WZLOO
RQO\OLJKWZKHQDQRQSDFNHW+)PRGHKDVEHHQVHOHFWHG
6HHDOVR+%$8'
%($&21>(9(5<_$)7(5@Q>(9(5<_$)7(5@QQ PLQXWHV
0XOWL3RUW
'HIDXOW(9(5<(9(5<
6HWVWKHLQWHUYDORIWLPHLQPLQXWHVWRWUDQVPLWDEHDFRQSDFNHWFRQWDLQLQJWKHWH[WDVVSHFLILHGLQ
WKH%7(;7FRPPDQG7KHEHDFRQZLOOEHWUDQVPLWWHG9,$DQ\GLJLSHDWHUVVSHFLILHGE\WKH
8135272FRPPDQG
:KHQWKHNH\ZRUG³(9(5<´LVXVHGDEHDFRQSDFNHWZLOOEHVHQWHYHU\QPLQXWHVZKHQWKHFKDQQHO
LVDYDLODEOH
:KHQWKHNH\ZRUG$)7(5LVXVHGDEHDFRQSDFNHWZLOOEHVHQW21&(DIWHUWKHVSHFLILHGLQWHUYDO
ZKHQQRFKDQQHODFWLYLW\KDVEHHQGHWHFWHG7KLV$)7(5RSWLRQFDQEHXVHGWRPDLQWDLQVRPHSDFNHW
DFWLYLW\RQDFKDQQHOEXWZLOOQRWFRQWLQXHWRWUDQVPLWEHDFRQVZKLOHWKHFKDQQHOLVEXV\ZLWKQRUPDO
SDFNHWFRPPXQLFDWLRQV
$YDOXHRIWXUQVWKHEHDFRQ2))
6HHDOVR%7(;78135272
%,76QQ ))
'HIDXOW
6SHFLILHVWKHELWVWREHLQYHUWHGZKHQUHFHLYLQJDELW577<RUELW$6&,,VLJQDO
7KLVPD\HQDEOHFRUUHFWGHFRGLQJRI577<RU$6&,,VLJQDOVWKDWKDYHVRPHELWVLQYHUWHG
)RUH[DPSOHVHWWLQJ%,76)ELWSDWWHUQZRXOGLQYHUWWKHILUVWIRXUELWVRIUHFHLYHG$6&,,
RU577<VLJQDOV
'DWDWUDQVPLWWHGLQWKH577<DQG$6&,,PRGHVDUHQRWDIIHFWHGE\WKLVFRPPDQG
%.21'(/^21_2))`
'HIDXOW21
:KHQVHWWR21WKHVHTXHQFHEDFNVSDFHVSDFHEDFNVSDFHLVVHQWWRWKHDWWDFKHGWHUPLQDOZKHQWKH
FKDUDFWHUVSHFLILHGE\WKH'(/(7(FRPPDQGLVHQWHUHG
:KHQVHWWR2))WKHEDFNVODVKFKDUDFWHU?LVVHQWWRWKHWHUPLQDOZKHQWKH'(/(7(FKDUDFWHULV
HQWHUHG
6HHDOVR'(/(7(5(',63/$<
%/7Q^(9(5<_$)7(5`KKPPVV>67$57KKPPVV@^(9(5<_$)7(5`KKPPVV>67$57
KKPPVV@
Q 0XOWL3RUW
'HIDXOW(9(5<(9(5<
)RUHDFKRIWKH/7EXIIHUV
6HWVWKHEHDFRQLQWHUYDOIRUWKHDVVRFLDWHG/7/RFDWLRQ7H[WEXIIHU
QVSHFLILHVWKH/7EXIIHUQXPEHU
:KHQWKHNH\ZRUG(9(5<LVXVHGWKH/7EXIIHUZLOOEHWUDQVPLWWHGDWWKHLQWHUYDOVSHFLILHGE\WKH
KKPPVVSDUDPHWHULQKRXUVPLQXWHVVHFRQGV
,IWKHRSWLRQDO67$57SDUDPHWHUIROORZHGE\DWLPHKKPPVVLQKRXUIRUPDWLVXVHGWKH%/7
EHDFRQZLOOQRWVWDUWXQWLOWKHVSHFLILHGWLPH7KHEHDFRQZLOOWKHQEHWUDQVPLWWHGDFFRUGLQJWRWKH
%/7LQWHUYDOVSHFLILHG,IWKHFXUUHQWWLPHLVSDVWWKHVSHFLILHG67$57WLPHWKHEHDFRQZLOOVWDUWDW
WKHQH[WVFKHGXOHGLQWHUYDO
:KHQWKHNH\ZRUG$)7(5LVXVHGWKHEHDFRQZLOOEHWUDQVPLWWHGRQFHDIWHUQRDFWLYLW\LVGHWHFWHGRQ
WKHFKDQQHOIRUKKPPVVWLPH7KHRSWLRQDO67$57SDUDPHWHULVQRWDOORZHGZKHQ$)7(5LVXVHG
%/7EHDFRQVDUHWUDQVPLWWHG9,$DQ\GLJLSHDWHUVVSHFLILHGE\WKH/73FRPPDQG
6HHDOVR/73
%5($.^21_2))`
'HIDXOW2))
:KHQVHWWR21DPRGHPEUHDNVLJQDOIURPWKHWHUPLQDOZLOOFDXVHDUHWXUQWR&200$1'PRGH
IURP&RQYHUVHRU7UDQVSDUHQW0RGH
:KHQVHWWR2))DPRGHPEUHDNVLJQDOKDVQRHIIHFW6HHDOVR&200$1'
%7(;7WH[WWH[WFKDUDFWHUV
0XOWL3RUW
'HIDXOWEODQNEODQN
%7(;7VSHFLILHVWKHWH[WWREHWUDQVPLWWHGLQD%($&21SDFNHW$Q\FRPELQDWLRQRIFKDUDFWHUVDQG
VSDFHVPD\EHXVHGXSWRDPD[LPXPRI&RQWUROFKDUDFWHUVVXFKDVDFDUULDJHUHWXUQFDQEH
HQWHUHGLQWKHWH[WE\SUHFHGLQJWKHPZLWKWKH3$66FKDUDFWHU
(QWHULQJ³%7(;7ZLOOFOHDU%7(;7
6HHDOVR%($&213$66
%8'/,67>21_2))@>121(_^_`^_!`FDOO_FDOOFDOO@
'HIDXOW2))121(
8VHGWRGHWHUPLQHZKLFKUHFHLYHGSDFNHWVZLOOEHGLVSOD\HG
:KHQVHWWR2))RU121(%8'/,67DOORZVGLVSOD\RIPRQLWRUHGSDFNHWVIURPDOOVWDWLRQVHYHQLI
WKHFDOOVLJQRIWKDWVWDWLRQLVOLVWHG
:KHQVHWWR21RQO\WKRVHSDFNHWVPRQLWRUHGIURPDQ\RIWKHFDOOVLJQVLQWKHOLVWZLOOEHGLVSOD\HG
7KHPD[LPXPQXPEHURIFDOOVLJQVDOORZHGLQ%8'/,67LV8SWRFDOOVLJQVPD\EHHQWHUHGDW
RQFHXVLQJWKHIRUPDWVKRZQDIWHUWKHFRPPDQGQDPHDQGWKHQHZOLVWRIIURPWRFDOOVLJQVZLOO
UHSODFHZKDWHYHUOLVWZDVWKHUHEHIRUH
6LQJOHFDOOVLJQVFDQEHDGGHGWRRUUHPRYHGIURPWKHOLVWZLWKWKHDSSURSULDWHFRPPDQGHQWU\
%8'/,67FDOOVLJQRU%8'/,67±FDOOVLJQ
$FDOOVLJQHQWHUHGZLWKRXWD66,'ZLOOPDWFKDQ\66,'RIWKDWFDOOVLJQ7RPDWFKDVSHFLILF66,'
RQO\HQWHUWKHFDOOVLJQZLWKWKDW66,'IRUH[DPSOHFDOOVLJQQZKHUHQ 0RUHVHOHFWLYHPRQLWRULQJLVHQDEOHGZKHQWKHFRPPDQGHQWU\LQFOXGHVDFDOOVLJQRUWZRFDOOVLJQV
FRPELQHGZLWK!DQGRUFKDUDFWHUV)RUH[DPSOHHQWHULQJ!FDOOVLJQZLOOHQDEOHPRQLWRULQJRI
SDFNHWV72WKDWFDOOVLJQDVVXPLQJ%8'/,67LV21(QWHULQJFDOOVLJQZLOOHQDEOHPRQLWRULQJRI
SDFNHWV)520WKHFDOOVLJQHQWHULQJFDOOVLJQ!FDOOVLJQZLOOHQDEOHPRQLWRULQJRISDFNHWVIURP
FDOOVLJQWRFDOOVLJQDQGHQWHULQJFDOOVLJQ!FDOOVLJQZLOOHQDEOHPRQLWRULQJRISDFNHWVIURP
FDOOVLJQWRFDOOVLJQDQGYLFHYHUVD
1RWHWKDWDQHQWU\RIFDOOVLJQ!FDOOVLJQRUFDOOVLJQ!FDOOVLJQFRXQWVDVRIWKHDOORZHG
FDOOVLJQV
6HHDOVR021,725683/,67
&$/,%5$7H
,PPHGLDWH
8VHGWRWUDQVPLWWHVWVLJQDOVRQUDGLRSRUWVRU
8VHWKH67$786FRPPDQGILUVWWRGHWHUPLQHWKHFXUUHQWUDGLRSRUW7RXVHWKHRWKHUUDGLRSRUWXVH
WKH675($06:FRPPDQGFKDUDFWHURUWKH3257FRPPDQGD3257FRPPDQGFKDQJHUHTXLUHVD
VRIWUHVHWWRHQDEOHWKHFKDQJHWRFKDQJHSRUWV
:KHQWUDQVPLWWLQJLQ&$/,%5$7HPRGHWKHWUDQVPLWDXGLRRXWSXWOHYHOFDQEHDGMXVWHGWRSURYLGH
WKHSURSHUDPRXQWRIWUDQVPLWDXGLRWRWKHUDGLR
7KHXVHVRIWKH&$/,%5$7(FRPPDQGDUHH[SODLQHGLQWKH&DOLEUDWLRQVHFWLRQ
1RWHWKDWWKH&$/,%5$7(IXQFWLRQLVQRWDYDLODEOHZKHQLQ+267PRGH
6HHDOVR325767$786675($06:;0,7/9/DQGWKH&$/,%5$7HVHFWLRQLQWKHDSSHQGL[
&$1/,1(QQ ))
'HIDXOW&WUO;!
6HWVWKHFKDUDFWHUXVHGWRFDQFHOWKHFXUUHQWXQ(17(5HGOLQH
:KHQLQ&RQYHUVRU&RPPDQG0RGHHQWHULQJWKH&$1/,1(FKDUDFWHUZLOOFDQFHOGHOHWHDOO
FKDUDFWHUVLQSXWIURPWKHNH\ERDUGEDFNWRWKHODVWXQ3$66HGFDUULDJHUHWXUQXQOHVVLQ&RQYHUV
0RGHZLWK&3$&7,0(WXUQHG21DQG3$&7,0(KDVH[SLUHGRU3$&/(1KDVEHHQUHDFKHG
:KHQLQ75$163$5(17PRGHWKH&$1/,1(FKDUDFWHULVWUDQVPLWWHGDVGDWD
6HHDOVR&$13$&&3$&7,0(3$&/(13$666(1'3$&75$16
&$13$&QQ ))
'HIDXOW&WUO<!
6HWVWKHFKDUDFWHUXVHGWRFDQFHOWKHODVWXQWUDQVPLWWHGSDFNHW:KHQLQWKH&RQYHUV0RGHHQWHULQJ
WKH&$13$&FKDUDFWHUZLOOFDQFHODOONH\ERDUGLQSXWEDFNWRWKHODVWXQ3$66HG6(1'3$&
FKDUDFWHUXQOHVV&3$&7,0(LVWXUQHG21DQG3$&7,0(KDVH[SLUHGRU3$&/(1KDVEHHQ
UHDFKHG
:KHQLQ&RPPDQG0RGHHQWHULQJWKH&$13$&FKDUDFWHUZLOOVWRSRXWSXWEDFNWRWKHWHUPLQDO
(QWHULQJWKHFKDUDFWHUDVHFRQGWLPHUHHQDEOHVQRUPDORXWSXW
:KHQLQ75$163$5(17PRGHWKH&$13$&FKDUDFWHULVWUDQVPLWWHGDVGDWD
6HHDOVR&$1/,1(&3$&7,0(3$&/(16(1'3$&75$16
&' ^,17(51$/_(;7(51$/,17(51$/_(;7(51$/`
0XOWL3RUW
'HIDXOW,17(51$/,17(51$/
6HOHFWVWKHW\SHRIFDUULHUGHWHFWWRXVHIRUGHWHFWLQJUHFHLYHGVLJQDOVWKURXJKWKHUDGLRSRUWV
:KHQVHWWR,17(51$/HQHUJ\DQGGDWDW\SHFDUULHUGHWHFWVDUHXVHG5HFHLYHDXGLRFDQEHIURP
HLWKHUDVSHDNHUW\SHRXWSXWRUIL[HGOHYHOXQVTXHOFKHGRXWSXWIURPDUDGLR7KH;&'IXQFWLRQ
UHPDLQVDFWLYHDQGFDQEHXVHGWRSUHYHQWSDFNHWWUDQVPLVVLRQ
:KHQVHWWR(;7(51$/DFDUULHUGHWHFWVLJQDOPXVWEHVXSSOLHGE\DQH[WHUQDOGHYLFHWKURXJKWKH
;&'SLQRQWKHUDGLRSRUW$FRQQHFWLRQWRJURXQGLQGLFDWHVDFWLYHFDUULHUGHWHFW
6HHDOVR6:3
&+(&.QQQ 0XOWL3RUW
'HIDXOWGLVDEOHG
:KHQVHWWRQXPEHUJUHDWHUWKDQWKLVWLPHRXWFRPPDQGLVXVHGWRVHQGDSDFNHWUHTXLULQJ
DFNQRZOHGJHPHQWDSROOQVHFRQGVDIWHUWKHUHKDVEHHQQRGDWDH[FKDQJHZLWKDFRQQHFWHG
VWDWLRQ,IDQDFNQRZOHGJHPHQWKDVQRWEHHQUHFHLYHGDIWHUDQXPEHURISROOVVHWE\5(75<D
VWDQGDUGGLVFRQQHFWVHTXHQFHZLOOEHLQLWLDWHG
2QHSXUSRVHRIWKLVFRPPDQGLVWRLQVXUHWKDWWKH71&ZLOOGLVFRQQHFWIURPDQRWKHUVWDWLRQDIWHUD
JLYHQWLPHLIWKHOLQNWRWKDWVWDWLRQKDVIDLOHGIRUZKDWHYHUUHDVRQ
:KHQXVLQJ9HUVLRQ$;/92))D&+(&. WLPHRXWZLOOLQLWLDWHDQLPPHGLDWHGLVFRQQHFW
6HHDOVR$;/9.17,0(55(/,1.5157,0(75,(6
&0'7,0(QQ VHFRQGV
'HIDXOW
6HWVWKHJXDUGWLPHIRUHQWU\RIWKHUHTXLUHGFKDUDFWHUVDVGHILQHGLQ&200$1'WRH[LW7UDQVSDUHQW
LQWHUIDFHPRGHDQGELQDU\WUDQVIHULQ*725PRGHDQGUHWXUQWRFRPPDQGPRGH
,I&0'7,0(LVVHWWR]HURWKHRQO\ZD\WRH[LWIURP7UDQVSDUHQW0RGHLVDPRGHPEUHDNVLJQDO
DVVXPLQJ%5($.LVVHWWR21DQGHQWHULQJWKH&200$1'FKDUDFWHUZLOOFDXVHWKDWFKDUDFWHUWREH
WUDQVPLWWHGDVGDWD,I%5($.LVDOVRVHWWR2))D+DUG5HVHWPXVWEHSHUIRUPHGWRFOHDUDOOFXUUHQW
SDUDPHWHUFKDQJHVDQGDOORZWKHXQLWWREHUHLQLWLDOL]HG
6HHDOVR&200$1'75$16%5($.
&06*^21_2))_',6&_3%%6`
0XOWL3RUW
'HIDXOW2))2))
:KHQVHWWR21WKHWH[WGHILQHGLQWKH&7(;7FRPPDQGZLOOEHVHQWWRWKHVWDWLRQFRQQHFWLQJWR
0<&$//
:KHQVHWWR',6&&7(;7ZLOOEHVHQWWRWKHFRQQHFWLQJVWDWLRQDQGWKHQGLVFRQQHFWHG
:KHQVHWWR3%%6WKH&7(;7ZLOOEHVHQWWRWKHFRQQHFWLQJVWDWLRQDQGWKHQWKHFRQQHFWLRQZLOO
DXWRPDWLFDOO\EHWUDQVIHUUHGWRWKH3%%6LIWKHPDLOER[KDVEHHQHQDEOHGDQGLVQRWDOUHDG\
FRQQHFWHGWRDQRWKHUVWDWLRQ,IWKH3%%6LVQRWDYDLODEOHD%86<PHVVDJHZLOOEHVHQWDQGWKH
VWDWLRQZLOOEHGLVFRQQHFWHG
:KHQVHWWR2))&7(;7ZLOOQRWEHVHQWWRWKHFRQQHFWLQJVWDWLRQ
6HHDOVR&7(;73%%6
&2'(>,7$_86_/&577<_$3/,1._0$56@
'HIDXOW,7$
,PPHGLDWH
6HOHFWVWKHFKDUDFWHUVHWXVHGLQWKH577<DQG$0725PRGHV
,7$VHOHFWVWKH,QWHUQDWLRQDO7HOHJUDSK$OSKDEHW1XPEHU86VHOHFWVWKH86FKDUDFWHUVHW
/&577<SURYLGHVDFRPSOHWHXSSHUORZHUFDVHFKDUDFWHUVHWDQG$3/,1.XVHVWKHIXOOSULQWDEOH
FKDUDFWHUVHWGHYHORSHGE\*3/;DQG:600FXUUHQWO\XVHGRQ$3/,1.%%6V\VWHPV
:KHQVHWWR0$56VSHFLDOFKDUDFWHUVFDQEHXVHGDVUHTXLUHGE\WKH0LOLWDU\$IILOLDWH5DGLR6\VWHP
6HHWKH0$56)HDWXUHVHFWLRQRIWKLVPDQXDO
&200$1'QQ ))
'HIDXOW&WUO&!
'HILQHVWKH&RPPDQG0RGHHQWU\FKDUDFWHU
:KHQLQFRQYHUVHPRGHHQWHULQJDVLQJOH&200$1'FKDUDFWHUZLOOFDXVHDUHWXUQWRFRPPDQG
PRGH
:KHQLQ75$163$5(17RU*36LQWHUIDFHPRGHVWKUHH&200$1'FKDUDFWHUVPXVWEHVHQWZLWKLQ
&0'7,0(WRUHWXUQWRFRPPDQGPRGH
6HHDOVR&0'7,0(&219(5675$16
&21/,67>21_2))@>121(_^_`FDOOVLJQ_FDOOVLJQFDOOVLJQ@
'HIDXOW2))121(
&21/,67LVXVHGWRGHWHUPLQHZKLFKVWDWLRQVFDOOVLJQVPD\XVH\RXUVWDWLRQIRU$1<SXUSRVH
LQFOXGLQJGLJLSHDWLQJ7KHPD[LPXPQXPEHURIFDOOVLJQVDOORZHGLQ&21/,67LV
$OLVWRIXSWRFDOOVLJQVPD\EHHQWHUHGDWRQFHE\HQWHULQJWKH&21/,67FRPPDQGDQGDOLVWRI
FDOOVLJQV$FDOOVLJQHQWHUHGZLWKRXWD66,'ZLOOPDWFKDQ\66,'RIWKDWFDOOVLJQ7RPDWFKDVSHFLILF
FDOOVLJQDQG66,'RQO\HQWHUWKDWFDOOVLJQZLWKWKDW66,'
6LQJOHFDOOVLJQVFDQEHDGGHGWRWKHOLVWE\HQWHULQJWKH&21/,67FRPPDQGZLWKFDOOVLJQDVORQJ
DVWKHUHLVURRPIRUWKHQHZFDOOVLJQLQWKHOLVWRUUHPRYHGIURPWKHOLVWZLWKWKH&21/,67
FRPPDQGDQG±FDOOVLJQ
:KHQ21DQGDFDOOVLJQRUOLVWRIFDOOVLJQVKDVEHHQHQWHUHGWKH71&ZLOOUHFRJQL]HRQO\WKRVH
SDFNHWVUHFHLYHGZLWKDFDOOVLJQWKDWDSSHDUVLQWKHOLVWDQGFRQQHFWLRQVWRDQ\FDOOVLJQWKDWLVQRWLQ
WKHOLVWZLOOQRWEHDOORZHG
:KHQ2))WKH71&ZLOOSURFHVVDOOSDFNHWV
7RUHPRYHDOOLWHPVIURPWKHFXUUHQWOLVWHQWHU&21/,67121(
&2102'(^&219(56_75$16`
'HIDXOW&219(56
&RQWUROVWKHFRPPXQLFDWLRQPRGHRIFRQQHFWHGSDFNHWOLQNVWRRWKHUVWDWLRQVLIWKH1202'(
FRPPDQGLVVHWWR2))
,IDOUHDG\LQ&RQYHUVRU7UDQVSDUHQW0RGHZKLFKPD\EHVHWE\WKH302'(FRPPDQGZKHQWKH
FRQQHFWLRQLVFRPSOHWHGWKHFRPPXQLFDWLRQPRGHZLOOQRWEHFKDQJHG,ISDUWRIDFRPPDQGKDVEHHQ
HQWHUHGZKHQWKHFRQQHFWLRQLVFRPSOHWHGWKHPRGHFKDQJHZLOOQRWWDNHSODFHXQWLOWKHFRPPDQGRU
&$1/,1(KDVEHHQHQWHUHG
6HHDOVR&$1/,1(&211(&7&219(561202'(75$16
&211(&7FDOO>9,$FDOOFDOOFDOO@
,PPHGLDWH
8VHGWRHVWDEOLVKDFRQQHFWOLQNZLWKDQRWKHUVWDWLRQLQSDFNHWPRGHXVLQJWKHFXUUHQWVHOHFWHGUDGLR
SRUW$67$786FRPPDQGFDQEHVHQWWRGHWHUPLQHZKLFKUDGLRSRUWDQGVWUHDPLVFXUUHQWO\VHOHFWHG
FDOO FDOOVLJQWREHFRQQHFWHGWRDQGDQ\FDOOVLJQVHQWHUHGDIWHU9,$DUHGLJLSHDWHUVWDWLRQVWRXVH
ZKHQQHHGHGWRUHDFKWKHRWKHUVWDWLRQ$PD[LPXPRIGLJLSHDWHUDGGUHVVHVFDOOVLJQVRUDOLDVHV
FDQEHVSHFLILHG
(DFKFDOOVLJQPD\DOVRKDYHDQRSWLRQDO6HFRQGDU\6WDWLRQ,GHQWLILHU66,'VSHFLILHGDVQZKHUHQ
7KHGLJLSHDWFDOOVLJQVDUHVSHFLILHGLQWKHRUGHULQZKLFKWKH\DUHWRUHOD\WUDQVPLWWHGSDFNHWV
8SRQVXFFHVVIXOFRQQHFWWKHPRGHVHWE\&2102'(ZLOOEHHQWHUHGLI1202'(LV2))
&RQQHFWUHTXHVWVPD\RQO\EHLQLWLDWHGLQWKH&RPPDQG0RGHDQGWKHFXUUHQWVWUHDPZLOOEHXVHG
,IDFRQQHFWLVLQSURJUHVVRUDOUHDG\HVWDEOLVKHGWKHFRQQHFWSDWKPD\EHFKDQJHGE\VLPSO\UH
LVVXLQJWKH&211(&7FRPPDQGZLWKWKHQHZSDWK7KLVPXVWEHGRQHRQWKHVDPHVWUHDPDVWKH
RULJLQDOFRQQHFW&$87,21SDFNHWVHQURXWHEHWZHHQ\RXUVWDWLRQDQGWKHUHFRQQHFWHGVWDWLRQPD\
EHORVW
(QWHULQJWKH&211(&7FRPPDQGDORQHZLOOGLVSOD\WKHVWDWXVRIWKHFXUUHQWVWUHDP
6HHDOVR&2102'(&212.'%/',6&0$;86(561202'(5(75<5,1*67$786
675($06:DQG3257
&212.^21_2))21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQVHWWR21FRQQHFWUHTXHVWVIURPRWKHU71&VFDQEHDXWRPDWLFDOO\DFNQRZOHGJHG
:KHQVHWWR2))FRQQHFWVIURPRWKHU71&VDUHQRWDOORZHG7KHUHTXHVWLQJVWDWLRQZLOOEHVHQWD
'0!SDFNHWDQGDPHVVDJHFRQQHFWUHTXHVWFDOOVLJQRIVWDWLRQDWWHPSWLQJWRFRQQHFWZLOOEH
RXWSXWWRWKHWHUPLQDO
:KHQ&212.LV2))WKHLQWHUQDO3%%6ZLOOVWLOODFNQRZOHGJHDFRQQHFWUHTXHVWIURPWKHORFDO
WHUPLQDO
6HHDOVR&2102'(&211(&7,17)$&(0$;86(56021,7251202'(86(56
&213(50^21_2))`
'HIDXOW2))
6HWWLQJ&213(50WR21IRUFHVWKHFRQQHFWLRQRQWKHFXUUHQWVWUHDPWREHFRPHSHUPDQHQWDQG
FDXVHVWKH71&WRDWWHPSWWRUHFRQQHFWZKHQLWLVUHVWDUWHG&213(50('FRQQHFWLRQVDUHVKRZQ
ZLWK3LQWKHVWDWXVGLVSOD\ZKLFKLVJHQHUDWHGE\WKH67$786FRPPDQG
(QWHULQJWKH&213(50FRPPDQGZKHQQRFRQQHFWLRQWRDQRWKHUH[LVWVZLOOGRQRWKLQJ6HHDOVR
67$786
&219(56
,PPHGLDWH
(QWHULQJWKH&219(56FRPPDQGZLOOFDXVHHQWU\LQWR&RQYHUVDWLRQDO0RGHRQWKHFXUUHQW,2
VWUHDP,IDFRQQHFWLRQWRDQRWKHUVWDWLRQH[LVWVRQWKHFXUUHQWVWUHDPFKDUDFWHUVFDQEHVHQWWRWKDW
VWDWLRQ,IWKHFXUUHQWVWUHDPLVQRWFRQQHFWHGW\SHGFKDUDFWHUVDUHWUDQVPLWWHGLQDQXQFRQQHFWHG
LQIRUPDWLRQSDFNHW
+LQW.LVWKHVDPHDV&219(56IRUTXLFNHUHQWU\
7RUHWXUQWRFRPPDQGPRGHHQWHUWKH&200$1'FKDUDFWHU&75/&!
6HHDOVR.&200$1'
&3$&7,0(^21_2))`
'HIDXOW2))
'HWHUPLQHVZKHQDSDFNHWLVWUDQVPLWWHGLQ&219(56PRGH
:KHQVHWWR2))SDFNHWVDUHWUDQVPLWWHGZKHQWKH6(1'3$&FKDUDFWHULVHQWHUHGRUZKHQ3$&/(1
LVDFKLHYHG
:KHQVHWWR21SDFNHWVDUHWUDQVPLWWHGDWLQWHUYDOVGHWHUPLQHGE\3$&7,0(DVLQ
75$163$5(17PRGHEXWWKHORFDOHGLWLQJDQGHFKRLQJIHDWXUHVRI&219(560RGHUHPDLQ
HQDEOHG
6HHDOVR&219(56&5.3$&/(13$&7,0(6(1'3$&75$16
&5 ^21_2))`
'HIDXOW21
:KHQVHWWR21WKH6(1'3$&FKDUDFWHUQRUPDOO\FDUULDJHUHWXUQLVDSSHQGHGWRDOOSDFNHWVVHQWLQ
&RQYHUV0RGHH[FHSWZKHQ3$&/(1LVH[FHHGHG6HWWLQJ&521DQG6(1'3$&WR'UHVXOWVLQD
QDWXUDOFRQYHUVDWLRQPRGH(DFKOLQHLVVHQWZKHQD&5LVHQWHUHGDQGDUULYHVDWLWVGHVWLQDWLRQZLWK
WKH&5DSSHQGHGWRWKHHQGRIWKHOLQH7RDYRLGRYHUSULQWLQJ$872/)PD\QHHGWREH21DWWKH
UHFHLYLQJHQG
6HHDOVR$872/)/)$''6(1'3$&
&5$''^21_2))`
'HIDXOW2))
:KHQVHWWR21DQGLQ577<$6&,,*725RU3$&725PRGHVDFDUULDJHUHWXUQZLOOEHDGGHGWR
HYHU\FDUULDJHUHWXUQUHFHLYHGIURPWKHWHUPLQDOWREHWUDQVPLWWHG
:KHQ2))QRH[WUDFDUULDJHUHWXUQVDUHDGGHGWRWUDQVPLWWHGGDWD6HHDOVR/)$''
&5683^21_2))`
'HIDXOW2))
:KHQ21HYHU\RWKHUFDUULDJHUHWXUQLQUHFHLYHGGDWDLVVXSSUHVVHGZKHQQRGDWDLVEHWZHHQWKHP
EHIRUHVHQGLQJWKHGDWDWRWKHWHUPLQDO
:KHQ2))DOOFDUULDJHUHWXUQFKDUDFWHUVDUHOHIWLQWKHUHFHLYHGGDWDDVLWLVVHQWWRWKHWHUPLQDO
:KHQPHFKDQLFDOWHOHSULQWHUPDFKLQHVZHUHXVHGLWZDVQRUPDOSUDFWLFHWRWUDQVPLWWZRFDUULDJH
UHWXUQFKDUDFWHUVWRDOORZWLPHIRUWKHPHFKDQLFDOFDUULDJHWRUHWXUQWRLWVVWDUWLQJSRVLWLRQ7KLV
FRPPDQGFDQEHWXUQHGRQWRILOWHURXWWKDW³H[WUD´FDUULDJHUHWXUQ
6HHDOVR$872/)/)683
&67$03^21_2))`
'HIDXOW2))
:KHQ21WKHGD\WLPHVWDPSLVSULQWHGZLWKDOO&211(&7('72DQG
',6&211(&7('PHVVDJHVGLVSOD\HGWRWKHWHUPLQDO
6HHDOVR&211(&7'$<7,0(',6&211(&7067$03
&7(;7WH[WFKDUDFWHUV
'HIDXOWEODQN
6SHFLILHVWKHWH[WWREHVHQWLQWRDFRQQHFWLQJVWDWLRQLQUHVSRQVHWRDFRQQHFWUHTXHVWSURYLGHGWKDW
WKHSDUDPHWHU&06*LVQRW2))
(QWHUDQ\FRPELQDWLRQRIFKDUDFWHUVDQGVSDFHVXSWRPD[LPXPOHQJWKRI&RQWUROFKDUDFWHUVFDQ
EHHQWHUHGE\XVLQJWKH3$66FKDUDFWHU
(QWHULQJDVLQJOHZLOOFOHDU&7(;7'RHVQRWDSSO\WRWKH&7(;7IRUWKH.1(7QRGH
6HHDOVR&06*&211(&73$66
&75/>DEFGHIJ@^2))_21_/21*_Q_087(P`Q P ,PPHGLDWH
&RQWUROVWKHVWDWXVRIWZRRXWSXWFRQWUROOLQHVVZLWFKHVLQWKH7(/(0(75<SRUWUDGLRSRUWDQG
UDGLRSRUW
(DFKFRQWUROOLQHPD\EHWXUQHG21FRQQHFWLRQWRJURXQGWXUQHG2))RSHQFRQQHFWLRQSXOVHG
21IRUVHFRQGVRUSXOVHG21QWLPHVZKHUHHDFKSXOVHLVVHFRQGLQGXUDWLRQ
:LWKWKH087(RSWLRQWKDWFRQWUROOLQHFDQEHXVHGWRPXWHYRLFHUHSHDWHURXWSXWV7KLVSDUDPHWHULV
VDYHGLQEDWWHU\EDFNHG5$0:KHQ087(LVVSHFLILHGWKHRXWSXWFRQWUROOLQHZLOOEHDILOWHUHG
YHUVLRQRIWKH5&9OHGZLWKDERXWDPPVHFDWWDFNWLPH,IWKH5&9OHGLVDFWLYHIRUP
FRQVHFXWLYHVDPSOHVDWPVHFLQWHUYDOVWKH&75/OLQHZLOODFWLYDWHLIWKH5&9OHGLVRIIDWDQ\
VDPSOHWKH&75/OLQHZLOORSHQ7KHVHDUHRSHQGUDLQRXWSXWVDQGDUHSXOOHGWRJURXQGZKHQDFWLYH
)RUPRUHLQIRUPDWLRQVHHWKHVHFWLRQRQ&RQQHFWLQJWR\RXU5DGLRLQWKLVPDQXDO
'RQRWDOORZPRUHWKDQP$RIFXUUHQWLQWKLVFLUFXLWRUDYROWDJHH[FHHGLQJ9'&
&: >Q@Q ZSP
'HIDXOW
,PPHGLDWH
(QWHULQJ&:DORQHHQWHUVWKH&:PRGH
,IQLVQRWVSHFLILHGWKHVSHHGVHWLQ&:63(('ZLOOEHXVHGIRUWUDQVPLWDQGUHFHLYH
6SHFLI\LQJQZLOOHQWHUWKH&:PRGHDWWKHGHVLUHGVSHHG:KHQUHFHLYLQJ&:VLJQDOVZLOOEH
GHFRGHGDXWRPDWLFDOO\ZLWKLQDSSUR[LPDWHO\:30IURPWKHFXUUHQWVHOHFWHGVSHHG
6HHDOVR&$1/,1(&:$8',2&:%$1'&:63(('&:721(0256(302'(DQG
3526,*1
&:%$1'QQ +]
'HIDXOW
6HWVWKHDXGLREDQGZLGWKILOWHUIRU&:UHFHSWLRQ
&:)$516:QQ ZSP
'HIDXOWZSP
6HWVWKHFKDUDFWHUVSHHGXVHGZKHQRSHUDWLQJ&:DQGWKH&:63(('LVOHVVWKDQ&:)$516:
&KDUDFWHUVDUHWUDQVPLWWHGDWWKLVVSHHGZLWKDGGLWLRQDOWLPHDGGHGEHWZHHQFKDUDFWHUVWRORZHUWKH
&:ZRUGUDWHWR\RXUVHOHFWHGVSHHG
6HHDOVR&:63(('
&:,'>(9(5<_$)7(5(9(5<_$)7(5@QQ PLQXWHV
0XOWL3RUW
'HIDXOW(9(5<(9(5<
6SHFLILHVWKHLQWHUYDOIRUDXWRPDWLF&:VWDWLRQLGHQWLILFDWLRQFRQWDLQLQJWKHWH[WFKDUDFWHUVGHILQHGLQ
WKH&:,'7(;7FRPPDQG
6HWWLQJDYDOXHJUHDWHUWKDQDFWLYDWHVWKH&:,'XQGHUWKHFRQGLWLRQVVSHFLILHG(DFKLQFUHPHQW
VSHFLILHVDPLQXWHLQWHUYDO
,IWKHRSWLRQDONH\ZRUG(YHU\LVXVHGD&:,'ZLOOEHWUDQVPLWWHGHYHU\QPLQXWHV
,IWKHRSWLRQDONH\ZRUG$)7(5LVXVHGD&:,'ZLOOEHWUDQVPLWWHG21&(DIWHUWKHVSHFLILHGLQWHUYDO
ZLWKQRFKDQQHODFWLYLW\
6HWWLQJDYDOXHRIGLVDEOHVWKH&:,'
6HHDOVR0<&$//&:,'7(;7
&:,'7(;7WH[WFKDUDFWHUV
'HIDXOW'(0<&$//
6HWVWKHWH[WWREHWUDQVPLWWHGGXULQJDXWRPDWLF&:,'RUGXULQJDQ$54,'LQ$0725*725
DQG3$&725PRGHV
7KHWH[WZLOOEHWUDQVPLWWHGDWLQWHUYDOVVSHFLILHGE\WKH&:,'RU$54,'FRPPDQGV
6HHDOVR$54,'&:,'
&:287387^2))_^.(<`^377`^$8',2``
'HIDXOW.(<
:KHQVHWWR.(<WKH&:.(<RXWSXWOLQHSRUWSLQLVXVHGWRWUDQVPLWWKH&:VLJQDO
:KHQVHWWR$8',2WKH&:VLJQDOZLOOEHWUDQVPLWWHGE\$)6.LQVWHDGRIXVLQJWKH&:.(<OLQH
RXWSXW7KLVVHWWLQJLVXVHGWRWUDQVPLWDQDXGLR&:VLJQDOZLWK)0RU66%UDGLRVWKDWGRQRWKDYHD
&:PRGHRU&:NH\FRQQHFWLRQ
:KHQWKHRSWLRQ377LVHQWHUHGWKH377OLQHZLOOEHNH\HG21ZKLOHWUDQVPLWWLQJ&:7KLVLV
UHTXLUHGZKHQWUDQVPLWWLQJ&:E\DXGLRWRQH$)6.
:KHQVHWWR2))WKHUHLVQRWUDQVPLW&:RXWSXWVLJQDOEXWUHFHLYHLQWKH&:PRGHLVXQDIIHFWHG
&:63(('QQ ZSP
'HIDXOWZSP
6HWVWKH&:VSHHGLQ&:PRGHDQGGXULQJD&:,',IVHWWRDYDOXHOHVVWKDQ&:)$516
)DUQVZRUWKZRUGVSDFLQJLVXVHGZKHQWUDQVPLWWLQJ
6HHDOVR&:&:)$516
&:721(Q1 +]
'HIDXOW+]
6HWVWKHFHQWHUIUHTXHQF\RIWKH&:UHFHLYHILOWHUDQGVHWVWKHWUDQVPLWWHG$)6.&:WRQHIUHTXHQF\
ZKHQ&:287387LVVHWWR$8',2
6HHDOVR&:287387
&::(,*+7QQ 'HIDXOW
$GGVZHLJKWLQJWRDWUDQVPLWWHG&:VLJQDO
7KHQRUPDO'$6+LVWKUHHWLPHVWKHOHQJWKRIWKH'27,IQLVVHWWRDQXPEHUKLJKHUWKDQWKH
'$6+ZLOOEHWKUHHWLPHVWKHOHQJWKRID'273/86Q'27WLPHVORQJHUWKDQQRUPDO
)RUH[DPSOHLIQLVVHWWRWKHQRUDQGWKH'$6+ZRXOGEHWLPHVWKHOHQJWKRIWKH
'27
'$0$^21_2))`
'HIDXOW2))
:KHQ21WKH71&FDQRSHUDWHDVD'$0$VODYHVWDWLRQRQFHFRQQHFWLRQLVHVWDEOLVKHGZLWKD
'$0$PDVWHUVWDWLRQ
:KHQ2))'$0$LVGLVDEOHGDQGWKH71&RSHUDWHVLQVWDQGDUG3DFNHWPRGHLH&60$&DUULHU
6HQVH0XOWLSOH$FFHVV
6HHDOVR'$0$&+&.'$0$VHFWLRQLQWKH2SHUDWLQJ0RGHVFKDSWHU
'$0$&+&.QQ WR
0XOWL3RUW
'HIDXOW
6HWVWKH'$0$WLPHRXWWLPHULQVHFRQGLQFUHPHQWV,IFRQQHFWHGWRD'$0$PDVWHUVWDWLRQWKDW
LVRSHUDWLQJLQ'$0$VODYHPRGHDQGWKHPDVWHUGRHVQRWSROOIRUGDWDEHIRUHWKH'$0$&+&.
WLPHUH[SLUHVWKH71&ZLOOUHYHUWWR&60$RSHUDWLRQDQGGLVFRQQHFWIURPWKH'$0$PDVWHU
6HHDOVR'$0$
'$<675^GDWHWLPHGLVSOD\IRUPDWDQGRUWH[W`
'HIDXOWPPGG\\KKPPVV
6HWVWKH)250$7RIWKHGDWHWLPHGLVSOD\DQGIRUDOOWLPHVWDPSVLQFOXGLQJWKH3%%6.$1RGH
0+($5'OLVWHWFXVLQJWKHORZHUFDVHOHWWHUVPGK\DQGVDVGHVFULEHGEHORZ
7KHORZHUFDVHFKDUDFWHUVPG\KDQGVZLOOEHUHSODFHGZLWKWKHFRUUHVSRQGLQJGDWHWLPHGDWD
IURPWKHLQWHUQDOFORFN
7KHORZHUFDVHPZLOOEHUHSODFHGZLWKWKHPLQXWHVWKHILUVWWLPHLWDSSHDUVDIWHUDORZHUFDVHK
,IKP\GRUVLVVSHFLILHGDVDVLQJOHFKDUDFWHUDQGWKHGD\WLPHYDOXHLVOHVVWKDQLWZLOOEH
GLVSOD\HGDVDVLQJOHGLJLW,IVSHFLILHGDVWZRFKDUDFWHUVWKHUHVXOWZLOOEHDWZRGLJLWGLVSOD\IRU
YDOXHVXQGHU
,IWKHPRQWKLVHQWHUHGDVWKUHHORZHUFDVHPFKDUDFWHUVLWZLOOEHGLVSOD\HGDVWKHILUVWWKUHH
FKDUDFWHUVRIWKHPRQWKQDPH-8/
,IWKH\HDULVVSHFLILHGDVIRXUORZHUFDVH\FKDUDFWHUVLWZLOOEHGLVSOD\HGDVGLJLWV
$VPDOOQXPEHURIRWKHU833(5&$6(WH[WFKDUDFWHUVVXFKDVDWLPH]RQHRUQXPEHUVPD\EH
HQWHUHGDQGZLOOEHGLVSOD\HGDVDQGZKHUHHQWHUHG
5HPHPEHUWKDW$//ORZHUFDVHPG\KDQGVFKDUDFWHUVZLOOEHUHSODFHGE\DFWXDOYDOXHV6RPH
H[DPSOHVWKHILUVWOLQHLVWKHGHIDXOWHQWU\RIVHWWLQJWKH'$<675FRPPDQGDQGWKHUHVXOWLQJ
WLPHGDWHGLVSOD\DUH
'$<675VHWWLQJ
'LVSOD\HG'DWH7LPH
PG\KPPVV
PPGG\\KKPPVV
GPP\\KPP
PPPG\\\\KPP&67
7,0(KKPP'$7(PPPG\\\\
-8/&67
7,0('$7(-8/
'2127HQWHUDQDFWXDOGDWHRUWLPHLQ'$<675XVH'$<7,0(WRVHWRUFKDQJHWKHGDWHDQGWLPH
,IDFWXDOGDWHDQGWLPHQXPEHUFKDUDFWHUVDUHHQWHUHGZLWKWKH'$<675FRPPDQGRQO\WKRVH
FKDUDFWHUVZLOOEHGLVSOD\HGDQGWKHFORFNZLOODSSHDUWRVWRS,IWKLVKDVKDSSHQHGVLPSO\UHHQWHUWKH
'$<675ZLWKWKHORZHUFDVHFKDUDFWHUVDVVKRZQLQRQHRIWKHOLQHVLQWKHOHIWFROXPQDERYH
6HHDOVR'$<7,0(
'$<7,0(\\PPGGKKPP>VV@
'$<7,0(LVXVHGWRVHWRUFKDQJHWKHGDWHDQGWLPH
:KHQGDWHDQGWLPHLVHQWHUHGLQWKHVSHFLILHGLQSXWIRUPDWWKHYDOXHVHQWHUHGDUHXVHGWRVHWWKH
VRIWZDUHFORFNFDOHQGDU
7KHVRIWZDUHFORFNFDOHQGDULVWKHQXVHGIRUWKHYDULRXV³KHDUG´OLVWV³VWDPS´IXQFWLRQVDQGIRU
PHVVDJHVUHFHLYHGLQWKH3%%6
:KHQHQWHULQJWKHGD\WLPHGLJLWVHQWHUWKHPZLWKWZRGLJLWVHDFKIRUWKH\HDUPRQWKGD\KRXU
PLQXWHDQGRSWLRQDOO\VHFRQGVZLWKQRVSDFHVGDVKHVRUVODVKHVDQGLQWKDWRUGHU
,I'$<7,0(LVHQWHUHGDORQHWKHGDWHDQGWLPHLVGLVSOD\HGXVLQJWKHIRUPDWGHILQHGE\WKH
'$<675FRPPDQG
6HHDOVR&67$03'$<7:($.'$<6750+($5'067$033%+($5'
'$<7:($.QQ 'HIDXOW
$GMXVWVWKHVRIWZDUHFORFNLIQHHGHGIRUDFFXUDWHWLPHNHHSLQJ
,QFUHDVLQJWKHSDUDPHWHUZLOOVORZWKHFORFNGHFUHDVLQJWKHSDUDPHWHUZLOOVSHHGXSWKHFORFN(DFK
FRXQWFRUUHVSRQGVWRVHFRQGVLQFUHDVHRUGHFUHDVHSHUKRXUV$PELHQWWHPSHUDWXUHZLOODIIHFW
WKHFORFNWRVRPHGHJUHH
'$<7:($.KDVQRHIIHFWRQWKHEDWWHU\EDFNHGFORFN%%&WKDWFORFNLVVHWRQO\E\XVLQJWKH
'$<7,0(FRPPDQG7KHVRIWZDUHFORFNVWRSVZKHQDVRIWUHVHWRUSRZHULQJRIIRFFXUVDQGXSRQ
SRZHURQWKHVRIWZDUHFORFNLVVHWWRWKHYDOXHRIWKH%%&
'%/',6&^21_2))`
'HIDXOW2))
'HWHUPLQHVKRZPDQ\GLVFRQQHFWVZLOOEHLVVXHGZKHQWKH'LVFRQQHFW',6&FRPPDQGLVXVHG
:KHQVHWWR2))RQO\RQHGLVFRQQHFWZLOOEHVHQWZKHQ',6&LVLVVXHG
:KHQVHWWR21DOORZV\RXUVWDWLRQWRGLVFRQQHFWIURPDGLVWDQWVWDWLRQLPPHGLDWHO\ZKHQ\RXLVVXH
WKH'LVFRQQHFW'FRPPDQG%\LVVXLQJWZR'LVFRQQHFWVLQVWHDGRIRQHZLWK\RXU'LVFRQQHFW'
FRPPDQG\RXUVWDWLRQZLOOQRWZDLWIRUWKHGLVWDQWVWDWLRQWRDFNQRZOHGJHD'LVFRQQHFW'FRPPDQG
LHWKHILUVWRQHVHQWEHIRUHGLVFRQQHFWLQJ
6HHDOVR',6&211(
'(/(7(QQ ))
'HIDXOW&WUO+!
6HWVWKHFKDUDFWHUWREHXVHGDVWKHGHOHWHFKDUDFWHU:KHQWKLVFKDUDFWHULVW\SHGWKHODVWLQSXW
FKDUDFWHULVGHOHWHG7KHPRVWFRPPRQVHWWLQJVDUHEDFNVSDFHDQG)GHOHWH
6HHDOVR%.21'(/
',''/(^21_2))`
'HIDXOW21
:KHQ21DGLGGOHFKDUDFWHULVVHQWZKHQQRFKDUDFWHUVDUHDYDLODEOHIURPWKHNH\ERDUGRUEXIIHU
GXULQJWUDQVPLVVLRQLQ577<RU$6&,,PRGH,Q577<WKHGLGGOHFKDUDFWHULVWKH/756FKDUDFWHULQ
$6&,,WKHGLGGOHFKDUDFWHULVDQXOO
:KHQ2))DQGQRFKDUDFWHUVDUHLQWKHWUDQVPLWEXIIHUDFRQVWDQW0$5.IUHTXHQF\LVWUDQVPLWWHG
',*,3($7^21_8,21/<_2))`
'HIDXOW21
:KHQ21DQ\UHFHLYHGSDFNHWVSHFLI\LQJDGLJLSHDWHUFDOOVLJQWKDWPDWFKHV0<&$//0<$/,$6
RU0<12'(LI.$1RGHLVDFWLYHDVWKHQH[WGLJLSHDWHULQOLQHZLOOEHUHWUDQVPLWWHG
(DFKVWDWLRQLQFOXGHGLQWKHGLJLSHDWOLVWUHOD\VWKHSDFNHWLQWKHRUGHUVSHFLILHGLQWKHDGGUHVVILHOG
'LJLSHDWLQJWDNHVSODFHFRQFXUUHQWO\ZLWKRWKHU71&RSHUDWLRQVDQGGRHVQRWLQWHUIHUHZLWKQRUPDO
FRQQHFWHGRSHUDWLRQRIWKHVWDWLRQ
:KHQ2))GLJLSHDWRSHUDWLRQVYLD0<&$//0<$/,$6RU0<12'(DUHGLVDEOHG
:KHQVHWWR8,21/<RQO\8,IUDPHVIURPRWKHUVWDWLRQVFDQEHGLJLSHDWHGFRQQHFWUHTXHVWVDQG
FRQQHFWHGW\SHSDFNHWVDUHLJQRUHG
6HHDOVR+,'0<$/,$60<&$//0<12'(
',6&211(>0<3%%6_0<5(027(_0<12'([@
[ .$1RGH
,PPHGLDWH
:KHQHQWHUHGZLWKRXWRSWLRQV',6&211(ZLOOLQLWLDWHDQLPPHGLDWHGLVFRQQHFWUHTXHVWRQWKH
FXUUHQW,2VWUHDP$VXFFHVVIXOGLVFRQQHFWUHVXOWVLQWKHGLVSOD\RI',6&211(&7('
,IWKH5(75<FRXQWLVH[FHHGHGZKLOHZDLWLQJIRUWKHFRQQHFWHGVWDWLRQWRDFNQRZOHGJHWKH71&
PRYHVWRWKHGLVFRQQHFWHGVWDWHRQWKDWVWUHDP(QWHULQJDVHFRQG'LVFRQQHFWFRPPDQGEHIRUH
5(75<KDVH[SLUHGZLOOUHVXOWLQDQLPPHGLDWHGLVFRQQHFWEXWPD\OHDYHWKHRWKHUVWDWLRQWKLQNLQJLW
LVVWLOOFRQQHFWHG'LVFRQQHFWPHVVDJHVDUHQRWGLVSOD\HGZKHQWKH71&LVLQ7UDQVSDUHQW0RGH
,I',6&211(0<3%%6LVHQWHUHGWKHSHUVRQDOPDLOER[ZLOOGLVFRQQHFWWKHFXUUHQWXVHURIWKH
PDLOER[
,I',6&211(0<12'([[ .$1RGHFLUFXLW$%&HWFLVHQWHUHGWKHQRGHZLOOGLVFRQQHFW
WKHVWDWLRQVOLQNHGWKURXJKWKHQRGHRQWKHFLUFXLWVSHFLILHG
,I',6&211(0<5(027(LVHQWHUHGWKHVWDWLRQFRQQHFWHGWRWKH0<5(027(FDOOVLJQZLOOEH
GLVFRQQHFWHG7KLVLVDOVRDYDOLGUHPRWHFRPPDQGDQGFDQEHXVHGWRHQG\RXURZQUHPRWH
FRQQHFWLRQ
6HHDOVR'%/',6&1(:02'(5(75<67$786
',63/$<>F@^$6<1&_$0725_$6&,,_&+$5_&:_*36_*7_,'_/,1._021,725
_1(7_3%%6_37_577<_7,0,1*_;75$`
,PPHGLDWH
:KHQHQWHUHGDORQHDOLVWRIDOOFRPPDQGDQGSDUDPHWHUVHWWLQJVZLOOEHGLVSOD\HG
:KHQHQWHUHGZLWKDVSHFLILFVXEJURXSDGLVSOD\RIFRPPDQGDQGSDUDPHWHUVHWWLQJVUHODWLQJWRWKDW
JURXSZLOOEHGLVSOD\HG
6XEFODVVHVRIUHODWHGSDUDPHWHUVDUH
$6<1&DV\QFKURQRXVSRUWSDUDPHWHUV71&WRFRPSXWHU
$0725SDUDPHWHUVDIIHFWLQJ$0725$54DQG)(&DQG1$97(;$07(;PRGHV
$6&,,SDUDPHWHUVDIIHFWLQJ$6&,,PRGH
&+$5VSHFLDO71&FKDUDFWHUV
&:SDUDPHWHUVDIIHFWLQJ&:PRGH
*36SDUDPHWHUVUHODWHGWR*36RSHUDWLRQV
*7SDUDPHWHUVDIIHFWLQJ*725PRGH
,','SDUDPHWHUV
/,1.SDUDPHWHUVDIIHFWLQJSDFNHWOLQN71&WR71&
021,725PRQLWRUSDUDPHWHUV
3%%6PDLOER[FRPPDQGV
37SDUDPHWHUVDIIHFWLQJ3DFWRUPRGH
577<SDUDPHWHUVDIIHFWLQJ577<PRGH
7,0,1*WLPLQJSDUDPHWHUV
;75$VRPHWUDQVPLVVLRQUHODWHGSDUDPHWHUVVXFKDV)6.,19
:KHQHQWHULQJ',63/$<DQGDVLQJOHFRPPDQGQDPHWKHFXUUHQWVHWWLQJIRUWKDWFRPPDQGZLOOEH
GLVSOD\HG
6HHDOVR'LVSOD\/LVWLQJVVHFWLRQ
':$,7QQ 0XOWL3RUW
'HIDXOW
'HILQHVDGHOD\WREHXVHGWRDYRLGFROOLVLRQVZLWKGLJLSHDWHGSDFNHWV
7KHYDOXHHQWHUHGIRUQLVWKHQXPEHURIPVLQWHUYDOVDIWHUODVWKHDULQJGDWDRQWKHFKDQQHOWR
ZDLWEHIRUHWUDQVPLWWLQJSDFNHWV
,WLVXVHGWRDOORZRWKHUGLJLSHDWHUVWDWLRQVWRKDYHKLJKHUSULRULW\DFFHVVWRWKHFKDQQHO+RZHYHU
XVLQJWKHFRPPDQGV3(56,67DQG6/277,0(LQVWHDGRI':$,7FDQSURYLGHDEHWWHUZD\WR
DYRLGSDFNHWFROOLVLRQV
6HHDOVR',*,3($73(56,676/277,0(
(&+2^21_2))`
'HIDXOW21
:KHQ21FKDUDFWHUVVHQWIURPWKHWHUPLQDODUHHFKRHGEDFNDQGGLVSOD\HG
,IHDFKW\SHGFKDUDFWHULVGLVSOD\HGWZLFHVHW(&+2WR2))
6HHDOVR%.21'(/)/2:
(6&$3(^21_2))`
'HIDXOW2))
6SHFLILHVWKHFKDUDFWHUGLVSOD\HGZKHQDQHVFDSHFKDUDFWHU%LVUHFHLYHGLQDSDFNHW
:KHQ2))%LVGLVSOD\HGXVXDOO\DVDOHIWSRLQWLQJDUURZ7KLVLVXVHIXOLI\RXUWHUPLQDOSURJUDP
LQWHUSUHWV(6&FKDUDFWHUVDVVFUHHQSRVLWLRQLQJFRPPDQGV$16,
:KHQ21DUHFHLYHGHVFDSHFKDUDFWHULVGLVSOD\HGDVDGROODUVLJQ
)(&>[[[[>[[[[[@>FDOOVLJQ@@
,PPHGLDWH
:KHQHQWHUHGDORQHVWDUWVWKH)(&UHFHLYHPRGH
:KHQDQRSWLRQDO[[[[>[[[[[@VHOFDOLVVSHFLILHGD6/()(&WUDQVPLVVLRQLVLQLWLDWHG7KHRSWLRQDO
[[[[>[[[[[`FDQEHDQ\RIWKHIROORZLQJ
$07256(/&$/FKDUDFWHUVGLJLWVRUGLJLWV
$07256(/&$/FKDUDFWHUVRUGLJLWV
6HHDOVR$0725$8726757&$1/,1(/$0725302'(7;')(&
),/7(5^21_2))`
0XOWL3RUW
'HIDXOW2))2))
:KHQ21FRQWUROFKDUDFWHUVKH[)ZKLFKPD\EHSUHVHQWLQPRQLWRUHGSDFNHWVDUHQRW
GLVSOD\HG$OOFRQWUROFKDUDFWHUVH[FHSWFDUULDJHUHWXUQ'DQGOLQHIHHG$ZLOOEHILOWHUHG
:KHQ2))DOOPRQLWRUHGFKDUDFWHUVFDQEHGLVSOD\HGZKLFKFDQFDXVHDQHUUDWLFGLVSOD\ZKHQ
PRQLWRULQJSDFNHWVIURPVWDWLRQVSHUIRUPLQJILOHWUDQVIHUVQRGHWRQRGHSDFNHWVRU%%6WR%%6
SDFNHWV
'2(6127DIIHFWUHFHLSWRIFRQWUROFKDUDFWHUVLQSDFNHWVUHFHLYHGIURPDFRQQHFWHGVWDWLRQ
6HHDOVR021,725
)/2:^21_2))`
'HIDXOW21
:KHQ21DQ\FKDUDFWHUHQWHUHGIURPWKHWHUPLQDOZLOOKDOWRXWSXWWRWKHWHUPLQDOXQWLOWKHFXUUHQW
SDFNHWRUFRPPDQGLVFRPSOHWHGE\6(1'3$&3$&/(1RU3$&7,0(&DQFHOLQJWKHFXUUHQWLQSXW
ZLWK&$1/,1(RUE\W\SLQJWKH5(',63/$<OLQHFKDUDFWHUZLOODOVRFDXVHWKHGLVSOD\WRUHVXPH
:KHQ2))GLVSOD\RIUHFHLYHGGDWDZLOOFRQWLQXHZKLOHVHQGLQJIURPWKHNH\ERDUG:KHQXVLQJD
VSOLWVFUHHQWHUPLQDOSURJUDPZLWKVHSDUDWHGRXWJRLQJDQGLQFRPLQJGDWDDUHDVVHW)/2:DQG
(&+2ERWKWR2))WRDOORZUHFHLYHGGDWDWREHGLVSOD\HGZKLOHGDWDLVVHQWWRWKH71&
VWUDQVPLW
EXIIHU
6HHDOVR&$1/,1(&$13$&&3$&7,0((&+23$&/(15(',63/$<6(1'3$&
)5$&.QQ VHFRQGV
0XOWL3RUW
'HIDXOW
6HWVDGHOD\RIQVHFRQGVEHIRUHUHVHQGLQJDQXQDFNQRZOHGJHGSDFNHW
(DFKLQFUHPHQWVSHFLILHVVHFRQGLQWHUYDOV$IWHUWUDQVPLWWLQJDSDFNHWZKLFKUHTXLUHV
DFNQRZOHGJPHQWWKH71&ZDLWV)5$&.VHFRQGVEHIRUHLQFUHPHQWLQJWKHUHWU\FRXQWHUDQGVHQGLQJ
WKHSDFNHWDJDLQ,IWKHUHWU\FRXQWVSHFLILHGE\WKH5(75<FRPPDQGLVH[FHHGHGWKHFXUUHQW
RSHUDWLRQLVDERUWHG,IWKHSDFNHWDGGUHVVLQFOXGHVGLJLSHDWHUVWKHWLPHEHWZHHQUHWULHVLVDGMXVWHGWR
)5$&.PZKHUHPLVWKHQXPEHURIGLJLSHDWHUVWDWLRQVVSHFLILHG:KHQWKHUHWULHG
SDFNHWLVVHQWDUDQGRPZDLWWLPHLVDOVRDGGHGWRDYRLGFRQGLWLRQVZKHUHWZRXQLWVUHSHDWHGO\FROOLGH
ZLWKHDFKRWKHU
7KH)5$&.WLPHUEHJLQVZKHQ377LVUHOHDVHGWKHSDFNHWKDVEHHQVHQWDQGLVVXVSHQGHGZKHQ
GDWDFDUULHUIURPWKHUDGLRLVSUHVHQWRUZKHQWUDQVPLWWLQJ
6HHDOVR&211(&75(75<
)5((48$/QQ 'HIDXOW
6HWVWKHPD[LPXPQXPEHURIELWVLQHUURUDOORZHGZKHQVFDQQLQJIRUIUHHVLJQDOV$0725VWDQGE\
PRGHRQO\DQGLVXVHGWRGHWHFWFRPPHUFLDOVKRUHVWDWLRQVIUHHVLJQDOWUDQVPLVVLRQVLQ6,725
:KHQPRUHWKDQQHUURUVDUHGHWHFWHGQRWKLQJLVRXWSXW:KHQOHVVWKDQRUHTXDOWRQHUURUVDUH
GHWHFWHG)5((6,*!LVGLVSOD\HG
:KHQVHWWRVFDQQLQJIRUIUHHVLJQDOVLVGLVDEOHG
)RUPRUHGHWDLOVHH+)(0DLOLQWKHQRQSDFNHWPRGHVRIRSHUDWLRQVHFWLRQ
)6.,19^21_2))`
'HIDXOW2))
&RQWUROVWKHSRODULW\RIWKH)6.RXWSXW
:KHQ2))0$5.LVRSHQFROOHFWRUDQG63$&(LVJURXQG
:KHQ21WKHSRODULW\RI0$5.DQG63$&(LVUHYHUVHG
)8//'83^21_2))_/223%$&.`
0XOWL3RUW
'HIDXOW2))2))
:KHQ2))LHKDOIGXSOH[FDUULHUGHWHFWVWDWXVLVXVHGWRGHWHUPLQHFKDQQHODYDLODELOLW\
:KHQ21WKHFDUULHUGHWHFWVWDWXVGRHVQRWLQKLELWWUDQVPLVVLRQ
)XOOGXSOH[RSHUDWLRQLVXVXDOO\XVHGZLWKDVHSDUDWHUHFHLYHUDQGWUDQVPLWWHURQGLIIHUHQWFKDQQHOV
:KHQVHWWR/223%$&.RSHUDWLRQLVWKHVDPHDVKDOIGXSOH[LH)8//'832))EXWWKHUHFHLYH
FLUFXLWUHPDLQVDFWLYHZKLOHWUDQVPLWWLQJ7KLVDOORZVVLPSOHWHVWLQJRIWKHPRGHPE\FRQQHFWLQJ
ZLUHEHWZHHQWKHWUDQVPLWDQGUHFHLYHDXGLRSLQVRQWKHUDGLRFRQQHFWRUWRYHULI\RSHUDWLRQRIWKH
PRGHPFLUFXLWU\
*021
,PPHGLDWH
(QWHUVWKH*725PRQLWRUPRGHDQGDOORZVPRQLWRULQJ*725462VEHWZHHQRWKHUVWDWLRQV
(QWHU&WUO&!;WRUHWXUQWRFRPPDQGPRGH
*36+($'QVWULQJQ VWULQJXSWRFKDUV
'HIDXOW*3**$VWULQJDQG EODQN!
'HILQHVZKLFK*3610($VHQWHQFHW\SHVZLOOEHVWRUHGLQWKH/7EXIIHUVQGHWHUPLQHVZKLFK
EXIIHUZLOOEHXVHGWRVWRUHWKHGDWDDQGVWULQJLVD10($VHQWHQFHKHDGHU
:KHQDPDWFKLQJKHDGHULVGHWHFWHGLQ*36GDWDWKDWVHQWHQFHXSWRFKDUDFWHUVLVVWRUHGLQWKH
DVVRFLDWHG/7EXIIHU
7RFOHDURQHRIWKHIRXUVWULQJVHQWHUWKH*36+($'FRPPDQGDQGEXIIHUQXPEHUDQGQRWKLQJHOVH
WKHQSUHVVWKH(17(5NH\
6HHDOVR%/7/7/73/75$&.
*36,1,7VWULQJVWULQJXSWRFKDUDFWHUV
'HIDXOWEODQN
'HILQHVDVWULQJZKLFKZLOOEHVHQWWRWKHDWWDFKHG*36XQLWXSRQSRZHUXS7KLVPD\EHXVHGWR
LQLWLDOL]HRUFRQILJXUHD*36XQLWWRSURYLGHRQO\VHOHFWHGLQIRUPDWLRQ
7RVHQGPRUHWKDQRQHVWULQJHQWHUD&WUO1!DWWKHHQGRIHDFKVHQWHQFHDQGWKH71&ZLOOVHQGD
&5/)VHTXHQFHWRWKH*36XQLW
(QWHUWKH*36,1,7FRPPDQGDQGDVLQJOHWRFOHDUWKHVWULQJ
6HHDOVR*36+($',17)$&(
*363257>EDXG@>1250$/_,19(57('@>&+(&.680_12&+(&.@
'HIDXOW1250$/&+(&.680
:KHQVHWWRDQRQ]HURYDOXHWKH$8;SRUWLVXVHGDVD*36,2SRUWDWWKHVSHFLILHGEDXGUDWH
9DOLGEDXGUDWHVDUHRU
:KHQ1250$/LVVSHFLILHGWKHVHQVHSRODULW\RIWKHLQSXWLV5656YROWDJHVRUYRI
WKHVDPHSRODULW\0RVW*36GHYLFHVZLWKGDWDRXWSXWKDYH56RUFRPSDWLEOHRXWSXW
:KHQ,19(57('LVVSHFLILHGWKHLQSXWSRODULW\LVRSSRVLWHRI56VXFKDVLQWUXH77/VLJQDOV
:KHQ&+(&.680LVVSHFLILHGRQO\*36VHQWHQFHVKDYLQJYDOLGFKHFNVXPVZLOOEHEHDFFHSWHG
:KHQ12&+(&.LVVSHFLILHGDOO*36VHQWHQFHVZLWKRUZLWKRXWYDOLGFKHFNVXPVFDQEHDFFHSWHG
1RWDOO*36XQLWVZLOODSSHQGFKHFNVXPVWRWKH*36VHQWHQFHVWKDWWKH\VHQG6RPH*36VHQWHQFHV
DUHUHTXLUHGWRLQFOXGHDFKHFNVXPZKLOHRWKHUVGRQRW
6HHDOVR*36,1,7
*367,0(^2))_9$/,'_21`^**$_*//_50&_='$`
'HIDXOW9$/,'50&
6SHFLILHVKRZWKHLQWHUQDOUHDOWLPHFORFNZLOOEHVHWIURPD*36GHYLFH
:KHQVHWWR2))WKHLQWHUQDOUHDOWLPHFORFNLVQRWVHWIURP*3610($VWULQJV
:KHQVHWWR9$/,'WKHLQWHUQDOUHDOWLPHFORFNFDQRQO\EHVHWLIWKHYDOLGELWLQWKHVSHFLILHGVWULQJ
LVVHWPHDQLQJWKDWSRVLWLRQKDVEHHQDFTXLUHG
:KHQVHWWR21WLPHDQGGDWHLVDFTXLUHGIURPWKHVSHFLILHGVWULQJ
,QDQ\FDVHWKHVSHFLILHGVWULQJPXVWLQFOXGHDYDOLGFKHFNVXP7KHUHDOWLPHFORFNZLOOQRWEH
XSGDWHGLIWKHWLPHUHFHLYHGLQDVWULQJLVWKHVDPHDVWKHODVWWLPHUHFHLYHG7KH
**$DQG*//VWULQJVGRQRWLQFOXGHDGDWHWKH='$VWULQJGRHVQRWLQFOXGHDYDOLGELWDQGVRPH
*36XQLWVGRQRWLQFOXGHDYDOLGELWLQWKH*//VWULQJ
*7'2:1QQ 'HIDXOW
6HWVWKHQXPEHURIFRQVHFXWLYHEDG*725IUDPHVUHFHLYHGEHIRUHGHFUHDVLQJVSHHGWRWKHQH[W
ORZHUEDXGUDWHIURPWRRUWR
*7(556QQ 'HIDXOW
6HWVWKHWLPHRXWDWWHPSWVIRU*725:KHQDWWHPSWLQJWROLQNZLWKDQRWKHUVWDWLRQWKHXQLWWLPHVRXW
DQGUHWXUQVWRVWDQGE\PRGHDIWHUQDWWHPSWVZLWKRXWDUHVSRQVH
:KHQDOUHDG\OLQNHGUHFHSWLRQRIQFRQVHFXWLYHIDXOW\IUDPHVUHVXOWVLQDWLPHRXW
*7)8==<QQ 'HIDXOW
6HWVWKHPD[LPXPQXPEHURIELWVLQD*725GDWDDFNQRZOHGJHPHQWWKDWPD\EHFRUUXSWHG
*725>[[[[[[[[[[@
,PPHGLDWH
(QWHULQJWKH*725FRPPDQGDORQHZLOOHQWHU*7256WDQGE\PRGHWRPRQLWRUIRUDQLQFRPLQJ
OLQNUHTXHVWWRWKH0<*7&$//WRWUDQVPLWDQ)(&EURDGFDVWDVZKHQVHQGLQJD&4PHVVDJHRU
PRQLWRU)(&EURDGFDVWVIURPRWKHUVWDWLRQVLI021,725LVVHWWR21
(QWHULQJWKH*725FRPPDQGZLWKDFDOOVLJQZLOOLQLWLDWHDOLQNDWWHPSWZLWKVWDWLRQ[[[[[[[[[[
7RGLVFRQWLQXHDOLQNDWWHPSWRUEUHDNDQH[LVWLQJOLQNXVHWKH&WUO&!'GLUHFWLYHZKLFKZLOOFDXVH
DUHWXUQWR*7256WDQGE\PRGHRUXVHWKH&WUO&!;GLUHFWLYHZKLFKZLOOH[LW*725DQGUHWXUQ
WRFRPPDQGPRGHFPGSURPSW
127(,I$54%%6LV21WKH3%%6KDVFRQWURORIWUDQVPLWWLQJSUHYHQWLQJPDQXDOWUDQVPLWFRQWURO
$OVRVHH$54%%6$54,'&:,'7(;7
*775,(6QQ 'HIDXOW
6HWVWKHPD[LPXPQXPEHURIDWWHPSWVWRLQFUHDVHVSHHG
,IXQVXFFHVVIXODIWHUQDWWHPSWVZLOOUHWXUQWRWKHSUHYLRXV*725VSHHGXQWLOUHFHLYLQJ*783
FRQVHFXWLYHJRRGIUDPHV
*783QQ 'HIDXOW
6HWVWKHUHTXLUHGQXPEHURIFRQVHFXWLYHJRRGIUDPHVWREHUHFHLYHGEHIRUHWU\LQJWRLQFUHDVHVSHHG
IURPWRRUWREDXG
6HHDOVR*775,(6
+%$8'QQQ 0XOWL3RUW
'HIDXOW
6SHFLILHVWKHSDFNHWGDWDEDXGUDWHIRUHDFKUDGLRSRUW
7KHYDOXHHQWHUHGILUVWEHIRUHWKHVODVKFKDUDFWHULVIRUSRUWWKHYDOXHDIWHUWKHVODVKLVIRUSRUW
+%$8'DIIHFWVRQO\WKHUDGLRSRUWEDXGUDWHVDQGLVLQGHSHQGHQWRIWKHWHUPLQDOEDXGUDWHVSHFLILHG
ZLWK$%$8'
+($'(5/1^21_2))`
'HIDXOW21
6HWVWKHGLVSOD\IRUPDWIRUPRQLWRUHGSDFNHWV
:KHQ21DFDUULDJHUHWXUQLVLQVHUWHGEHWZHHQWKHKHDGHUDQGWKHWH[WLQWKHGLVSOD\RIPRQLWRUHG
SDFNHWV7KLVFDXVHVWKHSDFNHWKHDGHUDQGWLPHVWDPSLIRQWREHGLVSOD\HGRQRQHOLQHZLWKWKH
SDFNHWWH[WGLVSOD\HGEHORZLWRQWKHQH[WOLQH
:KHQ2))PRQLWRUHGSDFNHWGDWDZLOOIROORZWKHKHDGHURQWKHVDPHOLQH
6HHDOVR&67$030&21021,725067$03
+(/3>FRPPDQG@
,PPHGLDWH
(QWHULQJWKH+(/3FRPPDQGDORQHRU"ZLOOGLVSOD\DOLVWLQJRIDOORIWKHFRPPDQGQDPHV
(QWHULQJ+(/3DQGDVLQJOHFRPPDQGQDPHZLOOGLVSOD\DEULHIGHVFULSWLRQRIWKDWFRPPDQG
8VLQJDZLOGFDUGLQWKH+(/3FRPPDQGVXFKDV+HOS&ZLOOGLVSOD\EULHIGHVFULSWLRQVRIDOO
FRPPDQGVEHJLQQLQJZLWK&
(QWHULQJ+(/3+(/3ZLOOGLVSOD\EULHIGHVFULSWLRQVRIDOOFRPPDQGV
6HHDOVR',63/$<
+,'^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQVHWWR21DQ,'SDFNHWZLOOEHVHQWHYHU\PLQXWHVZKLOHDQ\SDFNHWVDUHWUDQVPLWWHGIURP
\RXUVWDWLRQ
:KHQVHWWR2))SHULRGLFLGHQWLILFDWLRQSDFNHWVZLOOQRWEHVHQW
7KLVFRPPDQGVKRXOGEH21LIGLJLSHDWLQJZLWKDQDOLDVFDOOVLJQLVHQDEOHGRULIWKH.$1RGHRU
3%%6DUHHQDEOHG7KHVHIXQFWLRQVFDQXVHDFDOOVLJQRUDQDOLDVQDPH
7KH+,'WUDQVPLVVLRQZLOOLQFOXGHWKHYDOLGFDOOVLJQDVVHWLQ0<&$//DVZHOODVWKHFDOOVLJQVDQG
DOLDVHVRIDOORWKHUHQDEOHGIXQFWLRQV
6HHDOVR',*,3($7,'0<$/,$60<&$//0<12'(0<3%%618012'(63%%6
+7(;7WH[W
'HIDXOWEODQN
'HILQHVWKHKLHUDUFKLFDOURXWLQJLQIRUPDWLRQXVHGE\WKH3%%6LQPHVVDJHVIRUZDUGHGIURPWKH3%%6
WRDQRWKHU%%6RUPDLOER[
$KLHUDUFKLFDODGGUHVVFRQVLVWVRI\RXUVXEVWDWHLIXVHGVWDWHFRXQWU\DQGFRQWLQHQWFRGHV
VHSDUDWHGE\SHULRGV'RQRWHQWHU\RXUFDOOVLJQRUWKHILUVWSHULRGRI\RXUSDFNHWDGGUHVV
6HHWKH3%%6PDLOER[VHFWLRQRIWKH0RGHVRI2SHUDWLRQFKDSWHUIRUPRUHGHWDLOV
(QWHULQJ+7(;7ZLOOFOHDUDQ\SUHYLRXVO\HQWHUHGWH[W
1RWH7KH3%%6ZLOOQRWEHDEOHWRIRUZDUGRUUHYHUVHIRUZDUGPHVVDJHVIURPRWKHUPDLOER[HVRU
%%6VXQOHVV+7(;7KDVEHHQVHW6HHDOVR3%)25:5'
,'
,PPHGLDWH
:KHQHQWHUHGDQLGHQWLILFDWLRQ,'SDFNHWLVWUDQVPLWWHG
7KH,'SDFNHWLVWUDQVPLWWHGDVDQXQQXPEHUHGLQIRUPDWLRQ8,!SDFNHWDGGUHVVHGWR,'DQG
FRQWDLQVWKHVWDWLRQLGHQWLILFDWLRQDVVHWLQ0<&$//DQGWKHFDOOVLJQVRUDOLDVHVRIDOOHQDEOHG
IXQFWLRQV0<$/,$60<*$7(0<12'(0<3%%6,WZLOOEHGLJLSHDWHGYLDDQ\DGGUHVVHV
VSHFLILHGLQWKH8135272FRPPDQG
7KH0<&$//ZLOOLQFOXGHD5LI',*,3($7LV210<$/,$6'LIDGLJLSHDWHUDOLDVLVHQWHUHG
0<*$7(*LIWKHGLJLSHDWJDWHZD\LVHQDEOHG0<12'(1LIWKH.$1RGHLVHQDEOHGDQG
0<3%%6%LIWKH3%%6LVHQDEOHG
6HHDOVR+,'8135272
,17)$&(^7(50,1$/_+267_%%6_.,66_;.,66`
'HIDXOW7(50,1$/
6HWVWKHPRGHRIRSHUDWLRQIRUWKH56SRUWXSRQSRZHUXSRUDIWHUDUHVHW
:KHQVHWWR7(50,1$/WKHIXOOFRPPDQGVHWRIWKH71&LVDYDLODEOH
:KHQVHWWR%%6FRPPXQLFDWLRQLVWKHVDPHDVLQ7(50,1$/PRGHEXWFHUWDLQPHVVDJHVDUHQRW
GLVSOD\HGLHFRQQHFWUHTXHVW)505HWFIRUJUHDWHUFRPSDWLELOLW\ZLWKIXOOVHUYLFH%%6
SURJUDPVVXFKDV:‘5/,:$0%/&%%6HWF
:KHQVHWWR+267FRPPXQLFDWLRQLVLQ+267IUDPHVRQO\$OOFRPPDQGVUHPDLQDYDLODEOHDQG
RSHUDWLRQRIWZRPRGHVDWRQFHWKURXJKWKHUDGLRSRUWVDUHSRVVLEOHSDFNHWRQRQHSRUWDQGDQRQ
SDFNHW+)PRGHRQWKHRWKHUSRUW)RUPRUHLQIRUPDWLRQVHHWKH+2672SHUDWLRQVHFWLRQ
:KHQVHWWR.,66FRPPXQLFDWLRQLVLQ.,66IUDPHVRQO\XVLQJVRIWZDUHWKDWLPSOHPHQWVWKH.,66
FRGHVSHFLILHGE\3KLO.DUQ)RUPRUHLQIRUPDWLRQVHHWKH.,662SHUDWLRQVHFWLRQ
:KHQVHWWR;.,66FRPPXQLFDWLRQLVLQ.,66IUDPHVRQO\XVLQJVRIWZDUHWKDWLPSOHPHQWVWKH
*%34H[WHQGHG.,66SURWRFRO)RUPRUHLQIRUPDWLRQVHHWKH.,662SHUDWLRQVHFWLRQ
)RULQVWUXFWLRQVRQH[LWLQJ+267.,66RU;.,66PRGHVVHHWKH0RGHVRI2SHUDWLRQFKDSWHURI
WKLVPDQXDO
127($IWHUFKDQJLQJWKHVHWWLQJWR+267.,66RU;.,66DVRIWUHVHWLVUHTXLUHGWRHQDEOHWKH
QHZLQWHUIDFHPRGH
6HHDOVR5(6(72SHUDWLQJ0RGHVVHFWLRQV
,19(57^21_2))`
'HIDXOW2))
:KHQ21VLJQDOVUHFHLYHGLQ577<$6&,,RU$0725DQGVLJQDOVWUDQVPLWWHGXVLQJ$)6.DUH
LQYHUWHG
:KLOHLQ577<$6&,,RU$0725PRGHHQWHULQJD&WUO&!,GLUHFWLYHZLOOWRJJOH,19(57 21
DQG2))
.
,PPHGLDWH
6DPHDV&219(56&DXVHVHQWU\LQWR&RQYHUVDWLRQDO0RGHRQWKHFXUUHQW,2VWUHDP
6HHDOVR&219(56
.17,0(5QQ PLQXWHV
'HIDXOWPLQXWHV
$IWHUQPLQXWHVRIQRDFWLYLW\GDWDRQD.$1RGHFLUFXLWWKDWFLUFXLWERWKWKHLQSXWDQGRXWSXW
VLGHVZLOOEHGLVFRQQHFWHG
6HWWLQJ.17,0(5WRGLVDEOHVWKLVIHDWXUH
6HHDOVR5157,0(
.1;&21^21_2))`
'HIDXOW2))
:KHQ2))WKHFURVVFRQQHFWIXQFWLRQLQWKH.$1RGHIURPRQHUDGLRSRUWWRWKHRWKHULVGLVDEOHG
DQGWKH;FRQQHFWFRPPDQGZLOOQRWEHVKRZQ
:KHQ21WKH;FRQQHFWIXQFWLRQLVHQDEOHGDOORZLQJXVHUVRIWKH.$1RGHWRFURVVFRQQHFWIURP
RQHUDGLRSRUWWRWKHRWKHUUHTXLUHVERWKSRUWVWREHLQSDFNHWPRGH
6HHDOVR18012'(60<12'(
/$0725
,PPHGLDWH
(QWHUVWKHUHFHLYHRQO\/LVWHQ$0725PRGHIRUPRQLWRULQJRUUHFHLYLQJ)(&6(/)(&RU$54
VLJQDOVIURPRWKHUVWDWLRQV7UDQVPLWFDQQRWEHLQLWLDWHG
6HHDOVR$0725)(&0,66&+$5
/&2.^21_2))`
'HIDXOW21
:KHQ21ERWKXSSHUDQGORZHUFDVHFKDUDFWHUVDUHGLVSOD\HG
:KHQ2))DOOORZHUFDVHFKDUDFWHUVZLOOEHWUDQVODWHGWRXSSHUFDVHEHIRUHEHLQJGLVSOD\HGWRWKH
WHUPLQDOGRHVQRWDSSO\LQ3DFNHW7UDQVSDUHQW0RGH
/)$''^21_2))`
'HIDXOW2))
:KHQVHWWR21DOLQHIHHGFKDUDFWHUZLOOEHLQVHUWHGDIWHUHDFK&5WUDQVPLWWHGLQGDWDPRGH
:KHQ2))OLQHIHHGFKDUDFWHUVDUHQRWDGGHGWRWUDQVPLWGDWD
/)683^21_2))`
'HIDXOW2))
:KHQ21OLQHIHHGFKDUDFWHUVUHFHLYHGIURPRWKHUVWDWLRQVDUHILOWHUHGRXWVXSSUHVVHGDQGDUHQRW
GLVSOD\HG
:KHQ2))WKHOLQHIHHGVUHFHLYHGIURPWKHRWKHUVWDWLRQDUHQRWVXSSUHVVHGDQGDUHGLVSOD\HGWRWKH
WHUPLQDODVUHFHLYHG
6HHDOVR$872/)&5683
/*(7&+$5[[
'HIDXOW&WUO(!
6SHFLILHVWKHFKDUDFWHUXVHGWRGLVSOD\WKHFXUUHQWFRQWHQWVRIWKH/7EXIIHUVLQFRPPDQGRULQ
FRQYHUVHPRGHVWKHVDPHIXQFWLRQDV/75(67$57
3URJUDPVVXFKDV$356XVHWKLVFKDUDFWHUWRJDWKHU10($GDWDWKDWKDVEHHQFDSWXUHGDQGVWRUHGLQ
WKH71&
//,67>21_2))@>121(_^_`FDOOVLJQ_FDOOVLJQFDOOVLJQ@
'HIDXOW2))121(
:KHQ21DQGDFDOOVLJQRUOLVWRIXSWRFDOOVLJQVLVHQWHUHGWKRVHFDOOVLJQVZLOOEHLJQRUHGDQG
FDQ127XVHWKLV71&IRU$1<SXUSRVHLQFOXGLQJGLJLSHDWLQJ,QDGGLWLRQFRQQHFWLRQVZLOOQRWEH
SRVVLEOHWRDQ\VWDWLRQWKDWLQWKHOLVW
$VLQJOHFDOOVLJQFDQEHDGGHGWR//,67FDOOVLJQWKHOLVWVRORQJDVWKHUHLVURRPIRUWKHQHZ
FDOOVLJQRQWKHOLVWRUUHPRYHGIURP//,67FDOOVLJQWKHOLVW
(QWHU//,67121(WRUHPRYHDOOFDOOVLJQVIURPWKHOLVW
$FDOOVLJQHQWHUHGZLWKRXWD66,'ZLOOPDWFKDQ\66,'RIWKDWFDOOVLJQ7RPDWFKDVSHFLILF66,'
RQO\HQWHUWKHFDOOVLJQZLWKWKDW66,'IRUH[DPSOHFDOOVLJQQZKHUHQ /2:721(6
'HIDXOW2))
:KHQVHWWR21(XURSHDQORZWRQHVDUHXVHG
/7 QWH[WQ WH[WXSWRFKDUV
'HIDXOWEODQNIRUQ (QWHULQJ/7DORQHZLOOUHVXOWLQGLVSOD\RIDOO/7EXIIHUV
7KH/7EXIIHUV/RFDWLRQ7H[WEXIIHUVDUHXVHGWRVWRUHGDWDIURPD*36UHFHLYHURURWKHUGHYLFH
VHQGLQJGDWDLQWKH10($IRUPDWDVVSHFLILHGE\WKH*36+($'FRPPDQG
7KH/7EXIIHUVFDQDOVRDFFHSWWH[WHQWHUHGPDQXDOO\VXFKDV\RXUORFDWLRQFRRUGLQDWHVRUDQ\RWKHU
PHVVDJHWREHWUDQVPLWWHGDWLQWHUYDOVVSHFLILHGE\WKH%/7FRPPDQG
7RFOHDUDQ\RQHRIWKH/7EXIIHUVHQWHU/7QZKHUHQLVWKHQXPEHURIWKHEXIIHU
6HHDOVR%/7*36+($'/73/75$&.
/73 QGHVW>YLDFDOO>FDOO@@Q 0XOWL3RUW
'HIDXOW*36*36IRUQ 6HWVDGHVWLQDWLRQDQGDQ\GLJLSHDWHUVXSWRWREHXVHGZKHQWUDQVPLWWLQJHDFKRIWKH/7EXIIHUV
7KHGHIDXOWGHVWLQDWLRQLV*36EXWFRXOGEHVHWWR$356/2&$7(326,7RUDQ\RWKHUGHVWLQDWLRQ
QDPHRUFDOOVLJQDVUHFRPPHQGHGE\WKHORFDODUHD$356*36XVHUV
6HHDOVR/7
/75$&.Q>/7@>/7@>/7@>/7@>6<623@>7,0(@
'HIDXOW
Q .E\WHVRI5$0
$OORFDWHVPHPRU\IRUDVSHFLDOWUDFNLQJEXIIHUXVHGWRVWRUH/7PHVVDJHVOLPLWHGE\DYDLODEOH5$0
6SHFLI\LQJWKH/7WKURXJK/7SDUDPHWHUVGHWHUPLQHVZKLFK/7EXIIHUVZLOOEHVWRUHGLQWKH
WUDFNLQJEXIIHUDWWKHLQWHUYDOVSHFLILHGE\HDFKEXIIHUVUHVSHFWLYH%/7VHWWLQJ
,I6<623LVVSHFLILHGRQO\DXVHUZLWK6<623SULYLOHJHVPD\DFFHVVWKH/75$&.EXIIHU
,I7,0(LVVSHFLILHGDWLPHVWDPSZLOOEHLQFOXGHGLQIURQWRIHDFK/7PHVVDJH
7KH/75$&.EXIIHUFDQRQO\EHDFFHVVHGE\ILUVWFRQQHFWLQJWRWKHPDLOER[0<3%%6DQGXVLQJ
WKHPDLOER[FRPPDQG/75/LVW75DFNLQJEXIIHU7RVHHWKHV\QWD[RIWKLVFRPPDQGW\SH+(/3DW
WKH3%%6SURPSW
6HHDOVR/73%/7*36RSHUDWLRQVHFWLRQ3%%6RSHUDWLRQVHFWLRQ
0$//^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21GLVSOD\RIPRQLWRUHGSDFNHWVZLOOLQFOXGHFRQQHFWHGDQGXQFRQQHFWHGW\SHVRISDFNHWV
IURPRWKHUVWDWLRQVLI021,725LVDOVR21
:KHQ2))GLVSOD\RIPRQLWRUHGSDFNHWVZLOOLQFOXGHRQO\XQFRQQHFWHGSDFNHWV8,IUDPHV
6HHDOVR021,725
0$5.QQ +]
'HIDXOW+]
6HWVWKH0$5.WRQHIUHTXHQF\
7KH0$5.FRPPDQGPXVWEHVHWOHVVWKDQWKH63$&(FRPPDQG
1RWH7KH71&VSHFLILFDWLRQVDUHIRU0$5.YDOXHVIURPWKURXJK+LJKHUYDOXHVWR
DUHIRUH[SHULPHQWDOXVH
6HHDOVR63$&(
0$;)5$0(QQ 0XOWL3RUW
'HIDXOW
6HWVWKHPD[LPXPQXPEHURILQIRUPDWLRQSDFNHWVZKLFKFDQEHRXWVWDQGLQJVHQWDQGQRW
DFNQRZOHGJHGDWDQ\WLPH
$VLQJOHWUDQVPLVVLRQFDQFRQWDLQ0$;)5$0(QXPEHURISDFNHWVDQGQRQHZGDWDSDFNHWVFDQEH
WUDQVPLWWHGXQWLODFNQRZOHGJHPHQWKDVEHHQUHFHLYHG6HHDOVR3$&/(1
0$;86(56 QQ 0XOWL3RUW
'HIDXOW
$OORFDWHVWKHEXIIHUPHPRU\UHTXLUHGIRUWKHPD[LPXPQXPEHURIVLPXOWDQHRXVSDFNHWFRQQHFWLRQV
WRRUIURP0<&$//DOORZHGRQHDFKUDGLRSRUW
&KDQJLQJWKHYDOXHRI0$;86(56ZLOOFDXVHDVRIWUHVHWWRFKDQJHWKHPHPRU\DOORFDWLRQ
0$;86(56FDQQRWEHFKDQJHGZKLOHDQ\SDFNHWFRQQHFWLRQVH[LVW
(QWHULQJDYDOXHRIIRUHLWKHUUDGLRSRUWZLOOGLVDEOHWKDWUDGLRSRUW([FHSWLQDVSHFLDOFDVHZKHQ
ERWKSRUWVDUHVHWWR0$;86(56ZKLFKOHDYHVERWKUDGLRSRUWVHQDEOHGEXWDOORZVRQO\RQH
SDFNHWFRQQHFWDWDQ\WLPH7KLVRSWLRQLVLQFOXGHGIRU%%6VHUYLFHVZKLFKDUHDEOHWRDFFHSWRQO\
RQHXVHUDWDWLPH
6HHDOVR67$786675($06:86(56
0%($&21^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21PRQLWRUHGSDFNHWVDGGUHVVHGWR%HDFRQRU,'ZLOOEHGLVSOD\HGLI021,725LVDOVR21
:KHQ2))PRQLWRUHG%HDFRQDQG,'SDFNHWVZLOOQRWEHGLVSOD\HG
6HHDOVR%($&21,'021,725
0&20 ^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21PRQLWRUHGVXSHUYLVRU\FRQWUROSDFNHWVZLOOEHGLVSOD\HGLI021,725LVDOVR21
&RQWUROSDFNHWVDUHGLVWLQJXLVKHGIURPLQIRUPDWLRQSDFNHWVE\WKH!DQG!!FKDUDFWHUVHWV
DSSHQGHGWRWKHSDFNHWKHDGHU$OHWWHULVLQFOXGHGZLWKWKHVHFKDUDFWHUVWRGHQRWHWKHW\SHRIFRQWURO
SDFNHWUHFHLYHGHJF!!DFRQQHFWUHTXHVWSDFNHW
7KHW\SHVRIFRQWUROSDFNHWVDUHOLVWHGEHORZ
&!&RQQHFWUHTXHVW
'!'LVFRQQHFWUHTXHVW
'0!'LVFRQQHFWHG0RGH
8$!8QQXPEHUHG$FNQRZOHGJH
,QDGGLWLRQWKHIROORZLQJEUDFNHWHGLQIRUPDWLRQZLOOEHDGGHGWRWKH,QIRUPDWLRQSDFNHWVDV
DSSURSULDWH
8,!8QFRQQHFWHG,QIRUPDWLRQIUDPH
,V!,QIRUPDWLRQIUDPHFRQQHFWHG
V VHQGVHTXHQFHQXPEHU
)RUGHWDLOVRQFRQWUROSDFNHWVVHHWKHERRN³$;$PDWHXU3DFNHW5DGLR/LQN/D\HU3URWRFRO
9HUVLRQ´2FWREHUDYDLODEOHIURPWKH$55/
6HHDOVR$;/9021,72505(63
0&21 ^21_2))`
0XOWL3RUW
'HIDXOW2))2))
:KHQ21DOOHOLJLEOHPRQLWRUHGSDFNHWVDVGHWHUPLQHGE\RWKHUPRQLWRUFRPPDQGVZLOOEH
GLVSOD\HG
:KHQ2))DQGFRQQHFWHGWRDQRWKHUVWDWLRQPRQLWRUHGSDFNHWVZLOOQRWEHGLVSOD\HG2QO\WKHGDWD
IURPWKHFRQQHFWHGVWDWLRQRQWKHFXUUHQWVHOHFWHGVWUHDPZLOOEHGLVSOD\HG
:KHQ2))DQGQRWFRQQHFWHGDOOHOLJLEOHSDFNHWVZLOOEHGLVSOD\HG
$Q\KHDGHULQIRUPDWLRQGLVSOD\HGZLOOEHGHWHUPLQHGE\WKHVHWWLQJVRI675($0(9DQG
675($0&$
6HHDOVR021,72567$786675($0&$675($0(9
0+($'(5^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21WKHGLVSOD\PRQLWRUHGSDFNHWVZLOOLQFOXGHWKHSDFNHWKHDGHUV
:KHQ2))WKHGLVSOD\RIPRQLWRUHGSDFNHWVZLOOQRWLQFOXGHWKHSDFNHWKHDGHUVDQGRQO\WKHGDWD
FRQWDLQHGLQWKHSDFNHWVLQ,DQG8,IUDPHVDUHGLVSOD\HG7KH%8'/,67FRPPDQGFDQEHXVHGWR
UHVWULFWWKHGLVSOD\RIPRQLWRUHGSDFNHWVWRWKRVHIURPVHOHFWHGFDOOVLJQV
6HHDOVR021,7250&210%($&210$//683/,67%8'/,67
0+($5'>6+257_/21*_&/($5@
,PPHGLDWH
:KHQHQWHUHGDORQHGLVSOD\VDVKRUWOLVWRIFDOOVLJQVKHDUGLQPRQLWRUHGSDFNHWVZLWKWKHGDWHWLPH
WKHVWDWLRQZDVODVWKHDUG&DOOVLJQVOLVWHGZLWKDQLQGLFDWHVWKDWWKHVWDWLRQZDVKHDUGYLDD
GLJLSHDWHU
,IWKH6VKRUWRSWLRQLVXVHGWKHQRQO\WKHFDOOVLJQVRIVWDWLRQVKHDUGZLOOEHGLVSOD\HG
,IWKH/ORQJRSWLRQLVXVHGDOOFDOOVLJQVFRQWDLQHGLQWKHUHFHLYHGSDFNHWLQFOXGLQJWKHGLJLSHDWHU
SDWKVDUHGLVSOD\HG
,IWKH&RSWLRQLVXVHGWKHOLVWLVFOHDUHG
:KHQHYHU3$66$//LV21SDFNHWVZLOOQRWEHFKHFNHGIRUHUURUVDQGQRDGGLWLRQVZLOOEHPDGHWR
WKH0+($5'OLVW
6HHDOVR'$<7,0(3$66$//
0,66&+$5QQ ))
'HIDXOWVSDFH
'HILQHVWKHFKDUDFWHUGLVSOD\HGZKHQUHFHLYHGFKDUDFWHULVLQYDOLGRUXQUHFRJQL]HGZKHQRSHUDWLQJLQ
$0725RU1$97(;PRGHV
6HHDOVR$0725)(&/$07251$97(;
021,725^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21HOLJLEOHPRQLWRUHGSDFNHWVDUHGLVSOD\HGDFFRUGLQJWRWKHVHWWLQJVRI0$//0%($&21
0&200&2105(630537DQG0;0,7FRPPDQGVXQOHVVSURKLELWHGE\683/,67
%8'/,67RU//,67
$OOPRQLWRUIXQFWLRQVDUHGLVDEOHGLQWKH7UDQVSDUHQW0RGH
:KHQ2))RQO\SDFNHWVUHVXOWLQJIURPDFRQQHFWFRQQHFWLRQWRWKH71&ZLOOEHGLVSOD\HG
6HHDOVR%8'/,67+($'(5/1//,670$//0%($&210&200&210+($'(5
05(630537067$033,'683/,67
0256(FRGH7;5;
:KHQWKH0256(FRPPDQGLVHQWHUHGDORQHWKHOLVWRIFXUUHQWGHILQHGVSHFLDOFKDUDFWHUVLV
GLVSOD\HGDVVKRZQEHORZ
7KRVHFRGHVWKDWKDYHQRWDOUHDG\EHHQGHILQHGWKRVHZLWKVHWWLQJVFDQEHVHWWRWUDQVPLWD
GHVLUHG$6&,,FKDUDFWHUZKHQHQWHUHGDQGRUGLVSOD\DGHVLUHG$6&,,FKDUDFWHUZKHQUHFHLYHG&RGHV
DOUHDG\GHILQHGFDQQRWEHFKDQJHG
:KHQHQWHULQJDFRGHWKHDVWHULVNLVHQWHUHGDVD'27DQGWKHK\SKHQLVHQWHUHGDVD'$6+
7KH7;DQG5;FROXPQVUHSUHVHQWDQ$6&,,FKDUDFWHUYDOXHFDQEHHQWHUHGLQHLWKHU'(&,0$/RU
+(;$'(&,0$/7;LVWKH$6&,,FKDUDFWHUWUDQVPLWWHGZKHQWKHDVVRFLDWHGFRGHLVHQWHUHG5;LV
WKH$6&,,FKDUDFWHUGLVSOD\HGZKHQWKHDVVRFLDWHGFRGHLVUHFHLYHG:KHQWZRFKDUDFWHUYDOXHVDUH
HQWHUHGWRJHWKHUWKRVHFKDUDFWHUVDUHGLVSOD\HGWRJHWKHU
&RGHVDYDLODEOHIRUGHILQLWLRQE\WKH0256(FRPPDQGDUH
0256(
&2'(
7;
%
5;
(61
$6
$5
%.$
&2'(
7;
$
)
5;
$$
)
%6.
6HHDOVR&:35262*1$6&,,FKDUDFWHUYDOXHFKDUW
05(63^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21PRQLWRUHGSDFNHWVLQFOXGHWKH$;UHVSRQVHSDFNHWVOLVWHGEHORZLI021,725DQG
0&20DUH21
,IFRQQHFWHG0&21PXVWDOVREHRQ7KHEUDFNHWHGLQIRUPDWLRQZLOODSSHDUDWWKHHQGRIWKHKHDGHU
LQIRUPDWLRQ7KHDQGFKDUDFWHUVDUHXVHGWREUDFNHWDQGGHQRWHSDFNHWVUHFHLYHGDVYHUVLRQ
RUYHUVLRQUHVSHFWLYHO\
)RUH[DPSOH55!!GHQRWHVDYHUVLRQSDFNHWSROO,QDGGLWLRQXSSHUFDVHFKDUDFWHUVDUH
XVHGWRGHVLJQDWHFRPPDQGVSROOVDQGORZHUFDVHFKDUDFWHUVDUHXVHGWRGHQRWHUHVSRQVHVIRU55
5(-DQG515
)RUH[DPSOHUU!!LVDUHVSRQVHLQYHUVLRQ
)505!)UDPH5HMHFW
5(-U!5HMHFWU UHFHLYHGVHTXHQFHQXPEHU
515U!'HYLFHEXV\U UHFHLYHGVHTXHQFHQXPEHU
55U!5HFHLYH5HDG\U UHFHLYHGVHTXHQFHQXPEHU
,QDGGLWLRQWKHIROORZLQJEUDFNHWHGLQIRUPDWLRQZLOOEHDGGHGWRWKH,QIRUPDWLRQSDFNHWVDV
DSSURSULDWH
,VRUU!,QIRUPDWLRQIUDPHFRQQHFWHG
V VHQGVHTXHQFHQXPEHU
U UHFHLYHGVHTXHQFHQXPEHU
6HHDOVR$;/90&20021,725
)RUPRUHLQIRUPDWLRQVHHWKHERRN³$;$PDWHXU3DFNHW5DGLR/LQN/D\HU3URWRFRO9HUVLRQ´
2FWREHUZKLFKPD\EHREWDLQHGIURPWKH$55/
0537^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21WKHGLVSOD\RIPRQLWRUHGSDFNHWVLQFOXGHWKHFRPSOHWHOLVWRIGLJLSHDWHUFDOOVLJQVLQWKH
SDFNHWKHDGHU$QDVWHULVNLQGLFDWHVWKHVWDWLRQIURPZKLFKWKHSDFNHWZDVKHDUG
7KH021,725FRPPDQGPXVWEH21DQGLIFRQQHFWHG0&21PXVWDOVREH21
:KHQ2))RQO\WKHRULJLQDWLQJVWDWLRQDQGWKHGHVWLQDWLRQVWDWLRQFDOOVLJQVDUHGLVSOD\HGIRU
PRQLWRUHGSDFNHWV
6HHDOVR021,725
067$03^21_2))`
'HIDXOW2))
:KHQ21WKHGLVSOD\RIPRQLWRUHGSDFNHWVLQFOXGHVDWLPHVWDPSDVGHILQHGE\'$<675IRUPDW
021,725FRPPDQGPXVWEH21DQGLIFRQQHFWHG0&21PXVWDOVREH21
6HHDOVR&67$03'$<7,0(021,725
0;0,7^21_2))`
0XOWL3RUW
'HIDXOW2121
:KHQ21WUDQVPLWWHGSDFNHWVDUHGLVSOD\HGDVPRQLWRUHGSDFNHWVFRQWUROOHGE\VHWWLQJVRI
021,7250&200&2105(6375$&(067$03+($'(5/1%,7&219DQG),/7(5
FRPPDQGV
:KHQ2))WUDQVPLWWHGSDFNHWVDUHQRWGLVSOD\HG
6HHDOVR021,725
0<$/,$6[[[[[[QQ 0XOWL3RUW
'HIDXOWGLVDEOHGGLVDEOHG
(QDEOHVGLJLSHDWLQJE\WKHFDOOVLJQRUDOLDVQDPHHQWHUHG
7KHFDOOVLJQRUDOLDVQDPHFDQLQFOXGHXSWRVL[FKDUDFWHUVSOXVRSWLRQDO66,'DQGPXVWEHGLIIHUHQW
WKDQ0<&$//0<12'(0<3%%6RU0<5(027(
&DQEHGLVDEOHGE\HQWHULQJ0<$/,$6
6HHDOVR+,'
0<$87267[[[[[[[
'HIDXOW0<&$//
6SHFLILHVWKHFDOOVLJQRUQDPHXVHGIRUDXWRPDWLFDOO\VWDUWLQJUHFHLYHRSHUDWLRQVLQ577<RU$6&,,
PRGHVZKHQ$8726757LV21
7KHFDOOVLJQRUQDPHPD\FRQWDLQXSWRVHYHQFKDUDFWHUVDOORZLQJIRU0$56W\SHFDOOVLJQV
6HHDOVR$8726757
0<&$//[[[[[[QQ 0XOWL3RUW
'HIDXOWEODQNEODQN
'HILQHVWKHYDOLGFDOOVLJQIRURSHUDWLRQRIWKLV71&7KHFDOOVLJQRUDOLDVQDPHFDQLQFOXGHXSWRVL[
FKDUDFWHUVSOXVRSWLRQDO66,'6HFRQGDU\6WDWLRQ,GHQWLILHU
$OOSDFNHWVRULJLQDWHGE\WKLV71&ZLOOFRQWDLQWKLVFDOOVLJQLQWKH)520DGGUHVVILHOG
$Q\SDFNHWVUHFHLYHGZLWKWKLVFDOOVLJQLQWKH72DGGUHVVILHOGRUGLJLSHDWILHOGVZLOOEHUHVSRQGHGWR
DSSURSULDWHO\FRQQHFWGLVFRQQHFWDFNGLJLSHDWHWF
:KHQWKH71&LVSRZHUHGRQWKHILUVWWLPHRUKDVEHHQ+DUG5HVHWLWZLOOEHLQ$872%$8'VD\LQJ
³3UHVVWRVHWEDXGUDWH´:KHQDQLVUHFHLYHGLWZLOOWKHQUHTXHVWDFDOOVLJQHQWU\7KHFDOOVLJQ
HQWHUHGLVVHWLQ0<&$//DQGLVXVHGWRGHILQHFDOOVLJQVRU,'VIRURWKHUIXQFWLRQV&:,'7(;7
0<*$7(0<*7&$//0<*52830<12'(0<3%%60<37&$//DQG0<6(/&$/
6HHDOVR&:,'7(;7',*,3($7,'0<$/,$60<12'(0<3%%60<5(027(0<6(/
0<'*36FDOO
'HIDXOWEODQN
(QDEOHVUHFHSWLRQRIGLIIHUHQWLDO*36GDWDLQPRQLWRUHGSDFNHWVWREHSDVVHGRQWRD*36UHFHLYHU
:KHQWKH$8;SRUWLVFRQILJXUHGIRU*36DQGD8,SDFNHWDGGUHVVHGWRWKHFDOOHQWHUHGLQ
0<'*36LVUHFHLYHGWKHGDWDIURPWKDWSDFNHWLVRXWSXWRQWKH$8;SRUW
6HHDOVR*363257
0<'523QQ 0XOWL3RUW
'HIDXOW
6HWVWKH.,66DGGUHVVHVRIWKHUDGLRSRUWV
6HHDOVR,17)$&(.,662SHUDWLRQVHFWLRQ
0<*$7([[[[[[Q
'HIDXOW0<&$//
(QDEOHVFURVVSRUWGLJLSHDWLQJXVLQJWKHFDOOVLJQRURUDOLDVQDPHHQWHUHG
$FFHSWVXSWRVL[FKDUDFWHUVSOXVRSWLRQDO66,'DQGVKRXOGEHGLIIHUHQWWKDQWKRVHXVHGIRU
0<&$//0<$/,$60<3%%60<5(027(DQG0<12'(
(QWHULQJ0<*$7(GLVDEOHVJDWHZD\GLJLSHDWLQJ
6HHDOVR+,'8,*$7(
0<*5283^FFFF_QQQQ_QQQQQ_FFFFFFFF_QQQQQQQQQ_FDOOVLJQ`
'HIDXOW^EDVHGRQ0<&$//`
6HWVD6(/&$/XVHGIRUUHFHSWLRQRI6(/)(&WUDQVPLVVLRQV
7KLVDOORZVVHYHUDOVWDWLRQVWRXVHDJURXSVHOFDODQGVWLOOPDLQWDLQWKHLURZQLQGLYLGXDOVHOFDO
$FFHSWVFKDUDFWHUVRUQXPEHUVRUFKDUDFWHUVQXPEHUV&&,5RUDQDPDWHXUFDOOVLJQ
6HHDOVR$8726757
0<*7&$//[[[[[[[[[[
'HIDXOW^EDVHGRQ0<&$//`
6HWVWKHFDOOVLJQWREHUHFRJQL]HGLQ*725OLQNUHTXHVWV
$FFHSWVXSWR$6&,,FKDUDFWHUV
0<12'([[[[[[QQ 'HIDXOWP\FDOO
6HWVWKHFDOOVLJQRURUDOLDVQDPHXVHGE\WKH.$1RGHZKHQ18012'(6LVVHWWRDYDOXHJUHDWHU
WKDQ
$FFHSWVXSWRVL[FKDUDFWHUVSOXVRSWLRQDO66,'ZKLFKLVGLIIHUHQWWKDQWKRVHXVHGIRU0<&$//
0<$/,$60<3%%6RU0<5(027(
6HHDOVR',*,3($71':,/'18012'(6.$1RGH2SHUDWLRQVHFWLRQ
0<3%%6[[[[[[QQ 'HIDXOW0<&$//
6HWVWKHFDOOVLJQRUDOLDVQDPHXVHGE\WKHPDLOER[ZKHQ3%%6LVVHWWRDYDOXHJUHDWHUWKDQ
$FFHSWVXSWRVL[FKDUDFWHUVSOXVRSWLRQDO66,'ZKLFKLVGLIIHUHQWWKDQWKRVHXVHGIRU0<&$//
0<$/,$60<12'(RU0<5(027(
6HHDOVR/75$&.3%%63%%62SHUDWLRQVVHFWLRQ
0<37&$//[[[[[[[[
'HIDXOW^0<&$//`
6HWVWKHFDOOVLJQWREHUHFRJQL]HGLQ3$&725OLQNUHTXHVWV
$FFHSWVXSWR$6&,,FKDUDFWHUV
0<5(027([[[[[[QQ 'HIDXOWEODQN
6HWVWKHFDOOVLJQXVHGIRUUHPRWHDFFHVV
$FFHSWVXSWRVL[FKDUDFWHUVSOXVRSWLRQDO66,'ZKLFKLVGLIIHUHQWWKDQWKRVHXVHGIRU0<&$//
0<$/,$60<12'(RU0<3%%6
57(;7PXVWDOVREHHQWHUHGSURYLGLQJDSDVVZRUGWRHQDEOHUHPRWHDFFHVV
)RUGHWDLOVVHHWKH5HPRWH$FFHVVVHFWLRQRIWKH0RGHVRI2SHUDWLRQFKDSWHU
6HHDOVR57(;75HPRWH$FFHVVVHFWLRQ
0<6(/&$/^FFFF_QQQQ_QQQQQ_FFFFFFFF_QQQQQQQQQ_FDOOVLJQ`
'HIDXOW^EDVHGRQ0<&$//`
6SHFLILHV6(/&$/VWREHUHFRJQL]HGZKHQRSHUDWLQJLQ$07250RGH$
7KHFRQYHQWLRQXVHGIRU$0725VHOFDOVLVWRXVHWKHILUVWOHWWHUDQGWKHODVWWKUHHOHWWHUVRI\RXU
FDOOVLJQDV\RXUFKDUDFWHUVHOFDO7KH0<6(/&$/ZLOODOVRDFFHSWRUGLJLWQXPEHUVDQG
JHQHUDWHWKHFRUUHVSRQGLQJFKDUDFWHUVHOFDODXWRPDWLFDOO\IURPWKHVHQXPEHUV
,I\RXHQWHUFKDUDFWHUVQXPEHUVRUDQDPDWHXUUDGLRFDOOVLJQWKLVFRPPDQGZLOOXVHWKLVDV\RXU
FKDUDFWHUVHOFDOIRUWKH&&,5IRUPRI$0725RSHUDWLRQ
,I\RXFKRRVHWRHQWHU\RXURZQVHYHQFKDUDFWHUV\RXPXVWUHPHPEHUWKDWWKH&&,5
UHFRPPHQGDWLRQGRHVQRWDOORZWKHXVHRIWKHOHWWHUV*+-/1RU:<RXPXVWXVHWKH
0<6(/&$/FRPPDQGWZLFHWRFKDQJHERWKWKHFKDUDFWHUDQGWKHFKDUDFWHUVHOFDO%RWKVHOFDOV
DUHYDOLGDQGHLWKHURQHLVUHFRJQL]HGDXWRPDWLFDOO\
6HHDOVR$0725)(&
1$9&/5
,PPHGLDWH
&OHDUVWKH1$97(;PHVVDJHORJ
6HHDOVR1$97(;
1$9(55QQ 'HIDXOW
6SHFLILHVWKHPD[LPXPSHUFHQWRIHUURUVDOORZHGLQD1$97(;$07(;PHVVDJHEHIRUHWKH
PHVVDJHLVFRQVLGHUHGLQYDOLG
,IDPHVVDJHLVUHFHLYHGZLWKOHVVWKDQQHUURUVWKDWPHVVDJHZLOOEHORJJHGDQGGLVSOD\HG
,IWKHUHFHLYHGPHVVDJHFRQWDLQVH[FHVVLYHHUURUVWKHPHVVDJH7220$1<(55256;;;;
ZLOOEHGLVSOD\HGWKDWPHVVDJHZLOOQRWEHORJJHGDQGZLOOEHHOLJLEOHWREHGLVSOD\HGLIUHFHLYHGD
VHFRQGWLPH
6HHDOVR1$97(;
1$9/2*
,PPHGLDWH
'LVSOD\VWKHORJRI1$97(;$07(;PHVVDJHVZKLFKKDYHEHHQSURSHUO\UHFHLYHGDQGZRQ¶WEH
SULQWHGLIUHFHLYHGDJDLQ
7KHORJFDQEHFOHDUHGZLWKWKH1$9&/5FRPPDQG
6HHDOVR1$9&/5
1$906*F>FFF@_$//_121(F $=
'HIDXOW$//
6SHFLILHVZKLFKFODVVHVRI1$97(;PHVVDJHVDUHHOLJLEOHWREHGLVSOD\HG
7KUHHFODVVHV$%DQG'PXVWDOZD\VEHDFFHSWHGDFFRUGLQJWRWKHVSHFLILFDWLRQEXWPD\EH
HOLPLQDWHGE\WKHXVHU
,IDQ\RIWKHVHUHTXLUHGPHVVDJHFODVVHVDUHQRWVHOHFWHGDZDUQLQJPHVVDJHZLOOEHGLVSOD\HG
6SHFLI\LQJ$//ZLOOHQDEOHGLVSOD\RIDOOFODVVHVRIPHVVDJHV
6SHFLI\LQJ121(ZLOOH[FOXGHDOOFODVVHV
0HVVDJHFODVVHVDUHOLVWHGLQWKH1$97(;VHFWLRQRIWKLVPDQXDO
6HHDOVR1$967$1$97(;
1$967$F>FFF@_$//_121(F $=
'HIDXOW$//
6SHFLILHVWKHRULJLQDWLQJVWDWLRQVIURPZKLFKWRGLVSOD\PHVVDJHVLQ1$97(;PRGH
:KHQVHWWR$//DOO1$97(;VWDWLRQLGHQWLILHUVZLOOEHUHFRJQL]HG
:KHQVHWWR121(QR1$97(;VWDWLRQLGHQWLILHUVZLOOEHUHFRJQL]HGZKLFKZLOOHIIHFWLYHO\GLVDEOH
FRS\LQJDQ\PHVVDJHVLQWKH1$97(;PRGH
$Q\FKDQJHLQWKLVVHWWLQJZLOOFDXVHDVRIWUHVHW
6HHDOVR1$906*1$97(;
1$97(;
,PPHGLDWH
(QWHUVWKH1$97(;PRGHWRPRQLWRUIRUDQGGLVSOD\1$97(;RU$07(;PHVVDJHVDVDOORZHGE\
WKHVHWWLQJVRI1$9(551$906*DQG1$967$
5HIHUWRWKH1$97(;VHFWLRQRIWKLVPDQXDODQGWKHWK&RPSXWHU1HWZRUNLQJ&RQIHUHQFHSDSHUV
IRUGHWDLOV
6HHDOVR0,66&+$51$9&/51$9(551$9/2*1$906*1$967$302'(
1'+($5'>6+257_/21*_&/($5@
,PPHGLDWH
'LVSOD\VDOLVWRIQRGHVIURPZKLFK,'SDFNHWVKDYHEHHQKHDUG
7KHOLVWLQFOXGHVFDOOVLJQVRI.$1RGHDQG.1HWQRGHVDVZHOODV7KH1HW1(7520DQG*%34
QRGHVDQGWKHGDWHWLPHWKHVWDWLRQZDVODVWKHDUG$QDVWHULVNQH[WWRDFDOOVLJQLQGLFDWHVWKDWWKH
VWDWLRQ,'SDFNHWZDVKHDUGWKURXJKDGLJLSHDWHU
1RGHVDUHLGHQWLILHGDV$/,$6&$//6,*1DQG.$1RGHVZLOOEHLGHQWLILHGDV0<12'(
0<&$//
,IWKH6RSWLRQLVXVHGLH1'+($5'6WKHQRQO\WKHFDOOVLJQVRIWKHVWDWLRQVKHDUGZLOOEH
GLVSOD\HG
,IWKH/RSWLRQLVVHOHFWHGDOOFDOOVLJQVFRQWDLQHGLQWKHUHFHLYHG,'SDFNHWDUHGLVSOD\HGLQFOXGLQJ
GLJLSHDWHUV
,IWKH&RSWLRQLVXVHGWKHQRGHVKHDUGOLVWLVFOHDUHG
6HHDOVR0<12'(
1':,/'^21_2))`
'HIDXOW2))
:KHQ2))WKH.$1RGHZLOORQO\UHFRJQL]HFRQQHFWUHTXHVWVGLUHFWHGWRLWV0<12'(FDOO
:KHQ21FRQQHFWUHTXHVWVWRDQ\66,'RILWV0<12'(FDOOZLOOEHUHFRJQL]HGDVFRQQHFWVWRWKH
.$1RGHLIWKDW66,'LVQRWEHLQJXVHGIRUDQ\RWKHUIXQFWLRQLQWKH71&
6HHDOVR0<$/,$60<&$//0<12'(0<3%%60<5(027(
1(7$/,$6[[[[[[XSWRDOSKDQXPHULFFKDUDFWHUVEODQNEODQN
1(7$/,$6LVDQRSWLRQDOGXDOSRUWPQHPRQLFWKDWXVXDOO\SURYLGHVLQIRUPDWLRQDERXWWKHORFDWLRQRI
WKHQRGH,WH[LVWVRQO\IRUWKHFRQYHQLHQFHRIXVHUV1HWZRUNQRGHVDXWRPDWLFDOO\FRQYHUWWKH
1(7$/,$6WRWKHDVVRFLDWHG1(7&$//ZKHQVHWWLQJXSDFLUFXLWIRUDXVHU&KDQJLQJRUHQWHULQJ
1(7$/,$6ZLOOQRWFDXVHDVRIWUHVHW
1(7%8))6QQ 7KH1(7%8))6FRPPDQGVHWVWKHQXPEHURIQRGHEXIIHUVDYDLODEOHLQWKHQRGH,IWKH1(7%8))6
UHDFK]HURQRGHRSHUDWLRQPD\EHFRPHXQVWDEOH(DFK1(7%8))DOORFDWHGXVHVE\WHVRI5$0
&KDQJLQJ1(7%8))6ZLOOFDXVHDVRIWUHVHWDVPHPRU\LVUHDOORFDWHG
1(7&$//[[[[[[Q^EODQN`XSWSDOSKDQXPHULFFKDUDFWHUVSOXVRSWLRQDO66,'
7KH1(7&$//LVWKHFDOOVLJQRIWKH.1HWQRGHDQGFDQKDYHDQRSWLRQDO6HFRQGDU\6WDWLRQ
,GHQWLILHU66,'H[WHQVLRQRIWR7KH1(7&$//PXVWEHHQWHUHGEHIRUHWKH.1HWFDQEH
RSHUDWLRQDODQGPXVWEHGLIIHUHQWIURPDQ\RWKHUFDOOVLJQXVHGLQWKH.3&
(QWHULQJDDVWKH1(7&$//ZLOOFOHDUERWKWKH1RGHVDQG5RXWHVWDEOHVEXWQRWFKDQJHDQ\QRGH
UHODWHGSDUDPHWHUV(QWHULQJRUFKDQJLQJWKH1(7&$//ZLOOFDXVHDVRIWUHVHWDVPHPRU\LVUH
DOORFDWHG
1(7&,5&6QQ ^`
7KLVFRPPDQGOLPLWVWKHQXPEHURI1HWZRUN&LUFXLWVDYDLODEOHLQWKHQRGH$FLUFXLWLVDFRQQHFWLRQ
EHWZHHQWZRQRGHV7KHFLUFXLWZLOOFRQWDLQDQXSOLQNRULJLQDWHGE\DXVHURUVHUYHUDFURVVOLQNWKH
RWKHUQHWZRUNQRGHDQGXVXDOO\DGRZQOLQNWRDQRWKHUXVHURUVHUYHU7KHGRZQOLQNZLOOQRWH[LVW
XQWLOUHTXHVWHGE\WKHRULJLQDWLQJXSOLQNXVHU7KHFLUFXLWZLOOH[LVWXQWLOHLWKHUWKHGHVWLQDWLRQXVHURU
VHUYHURUWKHRULJLQDWLQJXVHURUVHUYHUGLVFRQQHFWV7KHFLUFXLWZLOODOVREHGLVFRQWLQXHGLIRQHRIWKH
QRGHVGHWHUPLQHVWKDWGDWDFDQQRORQJHUEHVHQWGXHWRDUHWU\WLPHRXW/1RULIWKHLQDFWLYLW\
WLPHU/7OH[SLUHV(DFK1(7&,5&DOORFDWHGXVHVE\WHVRI5$0&KDQJLQJ1(7&,5&6ZLOO
FDXVHDVRIWUHVHWDVPHPRU\LVUHDOORFDWHG
1(7'(676QQ ^`
6HWWLQJWKH1(7'(676GHWHUPLQHVWKHPD[LPXPQXPEHURIGHVWLQDWLRQQRGHVWKDWFDQEHVWRUHGLQ
WKH.1HWQRGHOLVW7KLVOLVWLVVHQWWRXVHUVZKHQWKH12'(6FRPPDQGLVJLYHQWRWKH.1HWQRGH
DQGDOVRZKHQWKHQRGHGRHVDQRGHVEURDGFDVW6HWWLQJ1(7'(676WRDYHU\ODUJHQXPEHULH
JUHDWHUWKDQRUVRLVJHQHUDOO\QRWDJRRGLGHDVLQFHWKLVFDQFUHDWHORQJQRGHEURDGFDVWVDQGORQJ
WUDQVPLVVLRQWLPHVWRXVHUVLQUHVSRQVHWRD12'(6FRPPDQG6HWWLQJ1(7'(676WRDYHU\ORZ
YDOXHFDQUHVXOWZLWKDGHVLUHGQRGHJHWWLQJEXPSHGRXWRIWKHQRGHVWDEOH$IWHU\RXU.1HWKDV
EHHQLQRSHUDWLRQIRUDZKLOH\RXVKRXOGEHDEOHWRGHWHUPLQHKRZPDQ\RIWKHGHVWLQDWLRQQRGHVWKDW
DUHOLVWHGLQ\RXUQRGHVWDEOHDUHUHOLDEOHSDWKV7KHYDOXHWKDW\RXHQWHUIRU1(7'(676VKRXOGEH
JUHDWHUWKDQWKLVQXPEHUDOORZLQJURRPIRURWKHUQRGHVDVWKH\EHFRPHDYDLODEOH,QDQ\FDVHQHYHU
DOORZWKHQRGHVGHVWLQDWLRQWDEOHWREHFRPHVRODUJHWKDWLWLVILOOHGZLWKXQXVDEOHDQGXQUHOLDEOH
GHVWLQDWLRQQRGHV9HU\ODUJHQRGHVWDEOHV!RUVRDUHVLPSO\EDIIOLQJWRQHZXVHUVDQGPRVWRI
WKHWLPHXQXVDEOHWRHYHQH[SHULHQFHGQRGHKRSSHUV
$OWKRXJKVHWWLQJ1(7'(676ZLOOSODFHDKDUGOLPLWRQWKHQXPEHURIGHVWLQDWLRQQRGHVWKDWFDQ
DSSHDULQWKHQRGHVWDEOHSURSHUVHWWLQJRIWKH.1HW48$/,7<DQG0,148$/FRPPDQGVZLOO
DOORZWKHQXPEHURIGHVWLQDWLRQQRGHVOLVWHGLQ\RXUQRGHVWDEOHWRIORDWZLWKFKDQJLQJEDQG
FRQGLWLRQVDQGDVVXUHWKDWUHOLDEOHGHVWLQDWLRQQRGHVDUHVWLOOOLVWHG(DFK1(7'(67DOORFDWHGUHTXLUHV
E\WHVRI5$0&KDQJLQJ1(7'(676ZLOOFDXVHDVRIWUHVHWDVPHPRU\LVUHDOORFDWHG
1(7/,1.6QQ ^`
7KH1(7/,1.6FRPPDQGVHWVWKHPD[LPXPQXPEHURIXSOLQNVGRZQOLQNVDQGFURVVOLQNVDYDLODEOH
WRWKHQRGH$QXSOLQNLVDXVHUWKDWFRQQHFWVGLUHFWO\WRWKH.1HWQRGHZLWKRXWXVLQJDQRWKHU
QHWZRUNQRGH$GRZQOLQNLVDFRQQHFWLRQIURPWKH.1HWQRGHGLUHFWO\WRDXVHU$FURVVOLQNLVD
FRQQHFWLRQEHWZHHQWZRQRGHV(DFK1(7/,1.DOORFDWHGUHTXLUHVE\WHVRI5$0&KDQJLQJ
1(7/,1.6ZLOOFDXVHDVRIWUHVHWDVPHPRU\LVUHDOORFDWHG
1(75287(QQ ^`
7KLVFRPPDQGVHWVWKHPD[LPXPQXPEHURIQHLJKERUQRGHVWKDWFDQEHOLVWHGZLWKWKH5287(6
FRPPDQG$QHLJKERUQRGHLVDQHWZRUNQRGHWKDW\RXU.1HWFDQKHDUGLUHFWZLWKRXWWKHEHQHILWRI
EHLQJUHOD\HGE\DQRWKHUQHWZRUNQRGH$VZLWKWKH1(7'(676SDUDPHWHULIWKHVHWWLQJRI
1(75287(LVWRRORZQRWDOORI\RXUQHLJKERUVZLOOEHDEOHWREHOLVWHG6HWWLQJ1(75287(WRD
KLJKHUQXPEHUZLOODOORZ\RXWRVHHZKDWWKHORFDOQRGHDFWLYLW\LVDQGVWLOOKDYHVRPHURRPLQUHVHUYH
WRKDQGOHLWLQHUDQWQRGHVDQGQRGHVWKDWZLOOVKRZXSGXULQJDEDQGRSHQLQJ(DFK1(75287(
DOORFDWHGUHTXLUHVE\WHVRI5$0&KDQJLQJ1(75287(ZLOOFDXVHDVRIWUHVHWDVPHPRU\LVUH
DOORFDWHG
1(786(56QQ ^`
1(786(56VHWVWKHPD[LPXPQXPEHURIXSOLQNVDQGGRZQOLQNVIURPWKHQRGH7KLVGXDOSRUW
FRPPDQGSODFHVDOLPLWRQKRZPDQ\XVHUVFDQDFFHVVRUEHDFFHVVHGE\WKHQRGH7KH1(786(56
FRPPDQGZLOOQRWFDXVHDVRIWUHVHWZKHQFKDQJHG
1(:02'(^21_2))`
'HIDXOW21
:KHQ21WKH71&ZLOOUHWXUQWR&RPPDQG0RGHLIWKHVWDWLRQRQWKHFXUUHQW,2VWUHDP
GLVFRQQHFWV7KH71&ZLOOQRWUHWXUQWR&RPPDQG0RGHLIWKHVWDWLRQGLVFRQQHFWLQJLVRQDGLIIHUHQW
VWUHDP
:KHQ2))DGLVFRQQHFWZLOOQRWFDXVHWKH71&WRFKDQJHPRGHV
6HHDOVR&211(&7',6&211(&767$786
1202'(^21_2))`
'HIDXOW2))
:KHQ2))DFKDQJHWRWKHPRGHVSHFLILHGE\&2102'(ZLOOWDNHSODFHXSRQFRQQHFWLRQWR
DQRWKHUVWDWLRQ
:KHQ21QRPRGHFKDQJHZLOOWDNHSODFHXSRQFRQQHFWLRQWRDQRWKHUVWDWLRQ
6HHDOVR&2102'(&211(&7
17(;7WH[WXSWRFKDUDFWHUV
'HIDXOWEODQN
6SHFLILHVWH[WDVDVLJQRQPHVVDJHVHQWWRVWDWLRQVFRQQHFWLQJWRWKH.$1RGH
$FFHSWVDQ\FRPELQDWLRQRIXSWRFKDUDFWHUVDQGVSDFHV
(QWHU17(;7WRHUDVHDOOHQWHUHGWH[W
6HHDOVR0<12'(18012'(6
18012'(6 QQ GHSHQGLQJRQDYDLODEOH5$0
'HIDXOW
6HWVWKHQXPEHURIFLUFXLWVDOORZHGWKURXJKWKH.$1RGH
:KHQVHWWRWKH.$1RGHLVGLVDEOHG
&KDQJLQJWKHYDOXHRI18012'(6ZLOOFDXVHDVRIWUHVHW
$SSUR[LPDWHO\.RI5$0LVXVHGIRUHDFKFLUFXLW$YDLODEOH5$0ZLOOGHSHQGRQKRZPXFKLV
DOUHDG\EHLQJIRURWKHUIXQFWLRQVVXFKDVWKH3%%60$;86(560<5(027(DQG.1HW
$QDWWHPSWWRVHWDYDOXHRIQODUJHUWKDQDYDLODEOH5$0ZLOODOORZZLOOFDXVHGLVSOD\RID1RW
HQRXJK5$0PHVVDJH
18012'(6PXVWEHHQWHUHGFRPSOHWHZLWKDQHZYDOXHWRFKDQJHWKHQXPEHURIDYDLODEOH.$
1RGHFLUFXLWV,IMXVWFKHFNLQJWKHFXUUHQWVHWWLQJWKHVKRUWIRUPFRPPDQG18ZLOOEHDFFHSWHG
6HHDOVR0<12'(.$1RGHVHFWLRQ
3$&/(1QQ FKDUDFWHUV
'HIDXOW
6SHFLILHVWKHPD[LPXPQXPEHURIFKDUDFWHUVDOORZHGLQWKHGDWDSRUWLRQRIDSDFNHWLQERWK
&219(56DQG7UDQVSDUHQWPRGHV
:KHQWKHQXPEHURIFKDUDFWHUVHQWHUHGUHDFKHVWKHYDOXHRIQDSDFNHWLVVHQW
:KHQVHWWRSDFNHWVFDQFRQWDLQXSWRFKDUDFWHUV
6HHDOVR0$;)5$0(
3$&7,0(>(9(5<_$)7(5@QQ 'HIDXOW$IWHU
8VHGWRSDFHWKHIRUPDWLRQDQGWUDQVPLVVLRQUDWHRISDFNHWVLQ
7UDQVSDUHQWPRGHRULQ&219(56PRGHZKHQ&3$&7,0(LV21
7KH3$&7,0(WLPHULVQHFHVVDU\LQWUDQVSDUHQWPRGHVLQFH6(1'3$&LVLJQRUHGDQGWUHDWHGDV
GDWD7KHWLPHULVVWDUWHGZKHQDE\WHLVUHFHLYHGIURPWKHWHUPLQDO
:KHQ$)7(5LVVSHFLILHGSDFNHWVDUHVHQWZKHQLQSXWIURPWKHWHUPLQDOVWRSVIRUQPVRUZKHQ
3$&/(1LVUHDFKHG
:KHQ(9(5<LVVSHFLILHGSDFNHWVDUHVHQWHYHU\QPVRUZKHQ3$&/(1LVUHDFKHG
6HHDOVR&3$&7,0(75$16
3$&725>@>FDOOVLJQ@
,PPHGLDWH
:KHQHQWHUHGDORQHHQWHUV3DFWRU6WDQGE\PRGHWRPRQLWRUIRULQFRPLQJOLQNUHTXHVWVWRWKH
0<37&$//RUGLVSOD\3DFWRU)(&RU$54VLJQDOVIURPRWKHUVWDWLRQVLI021,725IRUWKDWSRUWLV
21
,I75$&(LVDOVR21HDFKUHFHLYHG3DFWRUIUDPHZLOOEHGLVSOD\HGLQKH[DGHFLPDOIRUPDWQRW
DYDLODEOHLQ+267PRGH
(QWHULQJ3$&725DQGDFDOOVLJQZLOOLQLWLDWHDOLQNDWWHPSWWRWKDWVWDWLRQ
,IWKHRSWLRQDOLVLQFOXGHGSUHFHGLQJDFDOOVLJQWKHOLQNDWWHPSWDQGUHVXOWLQJOLQNWRWKHVWDWLRQ
VSHFLILHGZLOOXVHWKHORQJSDWKSURWRFROH[WHQGHGF\FOHWLPLQJDOORZLQJORQJHUGLVWDQFH
FRPPXQLFDWLRQ7KLVFDQDOVREHKHOSIXOLQVRPHFDVHVZKHUHRQHRUERWKVWDWLRQVWUDQVFHLYHUVKDYH
VORZVZLWFKLQJ
7KH&WUO&!'GLUHFWLYHZLOOGLVFRQWLQXHDOLQNDWWHPSWRUEUHDNHQGDQH[LVWLQJOLQNZLWKDQRWKHU
VWDWLRQUHWXUQLQJWR3DFWRU6WDQGE\PRGH
5HIHUWRWKH3$&725VHFWLRQLQWKH2SHUDWLQJPRGHVVHFWLRQIRUIXOOGHVFULSWLRQDQGRSHUDWLRQRI
3$&725
6HHDOVR$54,'&:,'
3$66QQ ))
'HIDXOW&WUO9!
6HOHFWVWKH$6&,,FKDUDFWHUXVHGWRDOORZHQWU\RIDQ\FKDUDFWHULQ&RQYHUVH0RGH
7RVHQGDFRQWUROFKDUDFWHUWRDQRWKHUVWDWLRQRUWRHQWHUDFRQWUROFKDUDFWHULQDWH[WPHVVDJHSUHFHGH
LWZLWKWKH3$66FKDUDFWHU
,Q7UDQVSDUHQW0RGHDOOFKDUDFWHUVDUHSDVVHGWKHUHDUHQRVSHFLDOIXQFWLRQVH[FHSWWKHRQH
FRPELQDWLRQWRJHWRXWRIWUDQVSDUHQWPRGHDQGWUDQVSDUHQWIORZFRQWUROFKDUDFWHUV
6HHDOVR75)/2:7;)/2:
3$66$//^21_2))`
0XOWL3RUW
'HIDXOW2))2))
:KHQ21HQDEOHVWKHGLVSOD\RIUHFHLYHGSDFNHWVZKLFKPD\FRQWDLQHUURUVLQFRUUHFWFKHFNVXPLQ
WKHSDFNHWGHWHFWHG
,IDUHFHLYHGSDFNHWFRQWDLQVEHJLQQLQJDQGHQGLQJIODJVWKH71&ZLOODWWHPSWWRGHFRGHWKHDGGUHVV
ILHOGDVZHOODVWKHGDWDILHOGDQGGLVSOD\WKHSDFNHWDVVSHFLILHGE\RWKHUFRPPDQGVVXFKDV
021,725
0+($5'DQG1'+($5'ORJJLQJDUHGLVDEOHGZKHQ3$66$//LV21
:KHQ2))SDFNHWVZLOOEHGLVSOD\HGRQO\LIWKH&5&HUURUFKHFNLQJLVFRUUHFWDQGDVVSHFLILHGE\
RWKHUFRPPDQGVVXFKDV021,725
3%%6QPD[LPXPYDOXHRIQGHSHQGVRQDYDLODEOH5$0
'HIDXOW
6HWWLQJQJUHDWHUWKDQDFWLYDWHVWKH3HUVRQDO0DLOER[DQGDOORFDWHVWKHVSHFLILHGDPRXQWPHPRU\IRU
LWVXVH
7KHDPRXQWRIPHPRU\DOORFDWHGZLOOEHQNLORE\WHVDQGPD\EHOLPLWHGE\RWKHUIXQFWLRQVWKDW
UHTXLUHPHPRU\HJ18012'(6DQG0$;86(56
&KDQJLQJWKHVL]HRIWKH3%%6PHPRU\DOORFDWLRQZLOOQRWDIIHFWWKHFRQWHQWVRIWKHPDLOER[
PHVVDJHVZLOOEHSUHVHUYHGDVORQJDVWKHQHZVL]HZLOOVWLOOFRQWDLQWKHPDQGZLOOFDXVHDVRIW
UHVHW
$WWHPSWLQJWRVHWWKH3%%6VPDOOHUWKDQLVUHTXLUHGIRUH[LVWLQJPHVVDJHVZLOOUHVXOWLQWKHGLVSOD\RI
0HVVDJHVZRXOGEHORVWDQGQRFKDQJHZLOOEHPDGHWRWKHPDLOER[VL]H0HVVDJHVPXVWEHGHOHWHG
ILUVWRUVHWWKH3%%6VL]HWRWRUHPRYHDOOPHVVDJHVWKHQWKH3%%6FDQEHVHWWKHGHVLUHGVPDOOHU
VL]H
5HVHWWLQJWKH3%%6WRWKHFXUUHQWVL]HZLOOFDXVHDOOPHVVDJHVWREHUHQXPEHUHGEHJLQQLQJZLWK
6HHDOVR&06*0<3%%63%+($'(53%/23%3(562137(;73%%6VHFWLRQ
3%)25:5'>EEVFDOO>9,$FDOOFDOOFDOO@@>SRUW@>(9(5<_$)7(5Q@
'HIDXOW121((9(5<
:KHQD%%6FDOOVLJQDQGLQWHUYDOLVHQWHUHGHQDEOHVHOLJLEOHPDLOPHVVDJHIRUZDUGLQJWRWKHVSHFLILHG
%%6DOVRUHTXLUHVWKDW+7(;7EHVHW
$Q\PHVVDJHSODFHGLQWKH3%%6FRQWDLQLQJDQ#%%6ILHOGDQGLVQRWPDUNHGDV+(/'+RU
)25:$5'(')LVHOLJLEOHIRUIRUZDUGLQJ
,IWKHNH\ZRUG(9(5<LVXVHGWKH3%%6ZLOODWWHPSWWRIRUZDUGRQFHHYHU\QKRXUVXQWLO
VXFFHVVIXO
,IWKHNH\ZRUG$)7(5LVXVHGWKH3%%6ZLOODWWHPSWWRIRUZDUGHOLJLEOHPHVVDJHVZKHQHYHUDXVHU
GLVFRQQHFWVIURPWKH3%%6DQGHYHU\QKRXUVDIWHUWKDWXQWLOVXFFHVVIXO
5HVHWWLQJWKHWLPHLQWHUYDOZLOOFDXVHWKH3%%6WRDWWHPSWWRIRUZDUGLPPHGLDWHO\
$IWHUWKH3%%6KDVLQLWLDWHGDIRUZDUGLWZLOODOVRUHTXHVWDUHYHUVHIRUZDUGLI3%5(9(56LV21
1RWHWKDWIXOOVHUYLFH%%6V\VWHPVPXVWEHFRQILJXUHGWRDFFHSWPHVVDJHVIURPDQGDOORZ
IRUZDUGLQJPDLOWR\RXU3%%6
6HHDOVR3%5(9(56+7(;7
3%+($'(5^21_2))`
'HIDXOW21
:KHQ21PHVVDJHVUHFHLYHGIURPDIXOOVHUYLFH%%6ZLOOEHVWRUHGZLWKWKHURXWLQJKHDGHUV
:KHQ2))WKHPHVVDJHURXWLQJKHDGHUVDUHQRWVWRUHGDOORZLQJPHVVDJHVWRUHTXLUHFRQVLGHUDEO\
OHVVVSDFH
7KHURXWLQJKHDGHUVDUHWKRVHOLQHVLQPHVVDJHVEHJLQQLQJZLWK5ZKLFKFRQWDLQWKHKLHUDUFKLFDO
DGGUHVVLQIRUPDWLRQRIDOOVWDWLRQVWKDWKDYHKDQGOHGWKHPHVVDJH
1RWHWKDWWKH3%%6ZLOOLJQRUHDOOOLQHVEHJLQQLQJZLWK5XQWLOLWVHHVWKHILUVWOLQHWKDWGRHVQRWKDYH
5LQFROXPQRQH)URPWKDWSRLQWRQDOORIWKHPHVVDJHZLOOEHVWRUHGHYHQLIDOLQHEHJLQVZLWKDQ
5
6HHDOVR3%%6VHFWLRQ
3%+2/'^21_2))`
'HIDXOW21
:KHQ21DQ\IRUZDUGDEOHPHVVDJHUHFHLYHGE\WKH3%%6RYHUWKHUDGLRZLOODXWRPDWLFDOO\EHKHOG
IRUUHYLHZ
$KHOGPHVVDJHFDQEHPDGHDYDLODEOHIRUIRUZDUGLQJE\HGLWLQJLWDQGFKDQJLQJWKH+IODJ
:KHQ2))IRUZDUGDEOHPHVVDJHVUHFHLYHGE\WKH3%%6RYHUWKHUDGLRDUHQRWKHOGDQGDUH
LPPHGLDWHO\HOLJLEOHWREHIRUZDUGHG
$Q\PHVVDJHVDGGUHVVHG72RU#WKH0<&$//RU0<3%%6LQWKLV71&DUHQRWIRUZDUGDEOH
PHVVDJHV
6HHWKH3%%62SHUDWLRQVHFWLRQIRUPRUHGHWDLOHGLQIRUPDWLRQ
3%.,//):^21_2))`
'HIDXOW2))
:KHQ2))3ULYDWHDQG7UDIILFW\SHVRIPHVVDJHVZLOOQRWEHGHOHWHGNLOOHGIURPWKH3%%6DIWHU
WKH\KDYHEHHQIRUZDUGHGEXWZLOOEHPDUNHGZLWKDQ)IODJIRUZDUGHG
:KHQ213ULYDWHDQG7UDIILFPHVVDJHVZLOOEHGHOHWHGIURPWKH3%%6DIWHUWKH\KDYHEHHQ
VXFFHVVIXOO\IRUZDUGHG
3%/,67>21_2))@>121(_^_`FDOOVLJQ_FDOOVLJQFDOOVLJQ@
'HIDXOW2))121(
:KHQVHWWR21DQGDFDOOVLJQRUDOLDVQDPHXSWRLVHQWHUHGPHVVDJHVSODFHGLQWKHPDLOER[
DGGUHVVHGWRDQ\OLVWHGFDOOVLJQRUQDPH0<&$//DQG0<3%%6ZLOOFDXVHWKHIURQWSDQHOPDLO
OHGWREOLQNZKHQWKH3%%6LVLGOHXQWLOWKHPHVVDJHKDVEHHQUHDG
3%%6FRPPDQGV/,670,1(5($'0,1(DQG.,//0,1(DSSO\WRDOOPHVVDJHVFRQWDLQLQJDQ\
FDOOVLJQRUQDPHLQWKHOLVWDVZHOODV0<&$//DQG0<3%%6
$OLVWRIXSWRHQWULHVFDQEHPDGHDWRQFHUHSODFLQJDOOFXUUHQWHQWULHVRUDVLQJOHHQWU\FDQEH
DGGHGFDOOVLJQLIVSDFHDOORZVRUUHPRYHGFDOOVLJQ
66,'
VDWWDFKHGWRFDOOVLJQVDUHDOZD\VLJQRUHGLQWKHPDLOER[
(QWHU3%/,67121(WRUHPRYHDOOLWHPVIURPWKHFXUUHQWOLVW
:KHQ3%/,67LVFKDQJHGWKHQHZOLVWWDNHVHIIHFWLPPHGLDWHO\IRUXVHZLWKWKH3%%6FRPPDQGV
/,670,1(5($'0,1(DQG.,//0,1(EXWWKHQHZOLVWZLOOQRWEHXVHGZLWKWKHPDLOVWDWXV
LQGLFDWRUXQWLODIWHUWKHQH[WGLVFRQQHFWIURPWKH3%%6RUWKHQH[WUHVHW
:KHQ3%/,67LV2))RQO\PHVVDJHVDGGUHVVHGWR0<&$//DQG0<3%%6DUHDIIHFWHGE\WKH
3%%6FRPPDQGV/,670,1(5($'0,1(DQG.,//0,1(RUDSSO\WRWKHEOLQNLQJPDLOOHG
3%/2 >2/'_1(:@>),;('_9$5,$%/(@
'HIDXOW1(:9$5,$%/(
:KHQVHWWR2/'WKH3%%6PHVVDJHVDUHOLVWHGWRWKHXVHULQROGHVWWRQHZHVWRUGHU
:KHQVHWWR1(:WKHQHZHVWPHVVDJHZLOOEHOLVWHGILUVW
:KHQWKHVHFRQGSDUDPHWHULVVHWWR),;('WKHXVHUFDQQRWFKDQJHWKHOLVWLQJRUGHU
:KHQWKHVHFRQGSDUDPHWHULVVHWWR9$5,$%/(WKHXVHUPD\FKDQJHWKHRUGHULQZKLFKPHVVDJHV
ZLOOEHOLVWHGE\XVLQJWKH/2FRPPDQGZLWKLQWKH3%%6
6HHDOVR3%%6VHFWLRQ
3%3(5621^21_2))`
'HIDXOW2))
:KHQ2))WKHSHUVRQDOPDLOER[ZLOODOORZPHVVDJHVWREHVHQWWRDQ\FDOOVLJQ
:KHQ21RQO\PHVVDJHVDGGUHVVHGWRWKH0<&$//0<3%%6RU3%/,67FDOOVLJQVZLOOEH
DFFHSWHGRYHUWKHUDGLREXWDPHVVDJHHQWHUHGIURPWKHWHUPLQDORUE\WKH6<623PD\EHDGGUHVVHG
WRDQ\RQH
6HHDOVR0<&$//0<3%%63%%6
3%5(9(56^21_2))`
'HIDXOW21
:KHQ21WKH71&3%%6ZLOOUHTXHVWDUHYHUVHIRUZDUGIURPDQRWKHU%%6DIWHULWKDVILQLVKHG
IRUZDUGLQJDQ\PDLOWRWKHRWKHU%%67KLVGRHVQRWDIIHFWWKHDELOLW\RIDQRWKHU%%6WRUHYHUVH
IRUZDUGIURP\RXU3%%6EXWRQO\DIIHFWVWKHDFWLRQWDNHQE\WKH71&DIWHULWKDVLQLWLDWHGDIRUZDUG
3%)25:5'FRPPDQG
1RWH<RXU3%%6ZLOOQRWIRUZDUGRUUHYHUVHIRUZDUGXQOHVV+7(;7LVVHW
6HHDOVR3%)25:5'
3(56,67QQ 0XOWL3RUW
'HIDXOW
8VHGZLWK6/277,0(WRLPSOHPHQWDQDOJRULWKPIRUFKDQQHODFFHVVWRVHQGSDFNHWVLQDPRUH
HIILFLHQWZD\WKDQZLWK':$,7
7KHUHVXOWRIXVLQJWKHSHUVLVWHQFHDOJRULWKPLVLQFUHDVHGWKURXJKSXWXQGHUPRVWFKDQQHOFRQGLWLRQV
:KHQDSDFNHWLVUHDG\WREHWUDQVPLWWHGDQGWKHFKDQQHOLVFOHDUDQGDYDLODEOHQRFDUULHURUSDFNHW
GHWHFWHGWKH6/277,0(WLPHUVWDUWV:KHQWKHWLPHUH[SLUHVDUDQGRPQXPEHUEHWZHHQDQG
LVJHQHUDWHG,IWKHJHQHUDWHGQXPEHULVHTXDOWRRUOHVVWKDQWKH3(56,67YDOXHWKHGDWDSDFNHWLV
WUDQVPLWWHG,IWKHJHQHUDWHGQXPEHULVJUHDWHUWKDQWKH3(56,67YDOXHWKHGDWDSDFNHWLVQRW
WUDQVPLWWHGDQGWKH6/277,0(WLPHULVUHVWDUWHG
,QDQH[DPSOHDVVXPHD3(56,67VHWWLQJRIDQGD6/277,0(VHWWLQJRIWKHGHIDXOWVHWWLQJV
7KLV6/277,0(VHWWLQJFRUUHVSRQGVWRPLOOLVHFRQGV:LWKD3(56,67VHWWLQJRIWKHRGGVRI
WUDQVPLWWLQJDIWHUWKHILUVW6/277,0(DUHLQ$FWXDOO\WKHSUREDELOLW\LV3(56,67SOXVGLYLGHG
E\,IWKHJHQHUDWHGUDQGRPQXPEHULVJUHDWHUWKDQ3(56,67WKHWLPHUUHVWDUWVDQGZDLWVIRUWKH
WLPHUWRH[SLUHDJDLQEHIRUHJHQHUDWLQJDQHZUDQGRPQXPEHU7KLVLVUHSHDWHGXQWLOWKHGDWDSDFNHWLV
WUDQVPLWWHG
'HFUHDVLQJWKHYDOXHRI6/277,0(ZLOOFDXVHWKHUDQGRPQXPEHUWREHJHQHUDWHGPRUHIUHTXHQWO\
ZKHUHDVLQFUHDVLQJWKH3(56,67YDOXHZLOOJLYHDEHWWHUFKDQFHLPSURYHWKHRGGVRIWUDQVPLWWLQJ
WKHGDWDSDFNHW
7KURXJKFDUHIXOFKRLFHRIWKHVHYDOXHVLWLVSRVVLEOHWRLPSURYHGDWDWKURXJKSXWZKLOHDWWKHVDPH
WLPHSHUPLWWLQJVKDUHGFKDQQHOXVDJHE\RWKHUSDFNHWVWDWLRQVZKHUHDOOVWDWLRQVXVHDVLPLODUYDOXH
7KHSHUVLVWHQFHDOJRULWKPKDVEHHQDGGHGRQWRSRIWKH':$,7DOJRULWKP
6HHDOVR6/277,0(
3+($5'>&/($5@
,PPHGLDWH
'LVSOD\VDOLVWRIFDOOVLJQVRIWKHODVWVWDWLRQVWKDWKDYHFRQQHFWHGWRWKH3%%6
7KHOLVWLQFOXGHVWKHFRQQHFWLQJVWDWLRQVFDOOVLJQDQGWKHODVWWLPHWKH\FRQQHFWHGDQGGLVFRQQHFWHG
(QWHU3+($5'&/($5WRFOHDUWKH3+($5'OLVWRIDOOHQWULHV
&DOOVLJQVZLOOQRWEHDGGHGWRWKHOLVWZKHQ3$66$//LV21
6HHDOVR3$66$//
3,'^21_2))`
0XOWL3RUW
'HIDXOW2))2))
:KHQ2))RQO\WKRVHSDFNHWVZLWKDSURWRFRO,'RI)SXUH$;DUHGLVSOD\HGDQGDFFRUGLQJ
WRWKHVHWWLQJVRIWKHYDULRXVPRQLWRUFRPPDQGV
:KHQ21DOOSDFNHWVGLVSOD\HGZLOOLQFOXGHWKHSURWRFRO,'ZLWKWKHSDFNHWKHDGHU
6RPHQRQVWDQGDUGW\SHVRISDFNHWVWKRVHZLWKSURWRFRO,GVRWKHUWKDQ)FDQFRQWDLQGDWDRU
FKDUDFWHUVWKDWFDQFDXVHVRPHFRPSXWHUVWRORFNXS1HW5RP7KH1HWDQG*%34QRGHVXVHD3,'
RI&)ZKLOH7&3,3XVHV&&DQG&'
:KHQPRQLWRULQJZLWK3,'21LWZRXOGEHUHFRPPHQGHGWRDOVRVHW),/7(5WR217KLVZLOO
SUHYHQWPRQLWRUHGGDWDWKDWPD\ORRNOLNHFRQWUROFKDUDFWHUVIURPEHLQJGLVSOD\HG
6HHDOVR),/7(5
302'(^121(_$6&,,_$0725_&:_)(&_*725_1$97(;_3$&725_577<_&219_75$16`
'HIDXOW121(
7KH302'(FRPPDQGVHWVWKHPRGHRIFRPPXQLFDWLRQRQSRZHUXSRUDIWHUDUHVHW
:KHQVHWWR121(WKHSRZHUXSPRGHLVFRPPDQGPRGHLHVKRZWKHFPGSURPSW
2QFHVWDUWHGQRQSDFNHWPRGHVRIFRPPXQLFDWLRQDUHFRQWUROOHGXVLQJGLUHFWLYHVLPPHGLDWH
FRPPDQGVLVVXHGE\&WUOFRPPDQGOHWWHUVRWKHUHLVQRFRPPDQGOLQHZKHQLQDQRQSDFNHWPRGH
RIFRPPXQLFDWLRQ'LUHFWLYHVIRUDJLYHQQRQSDFNHWPRGHRIFRPPXQLFDWLRQFDQQRWEHHQWHUHG
XQOHVVWKDWPRGHRIFRPPXQLFDWLRQLVDFWLYH
:KHQ302'(LVVHWWRWKHQDPHRIDQ\QRQSDFNHWPRGHRIFRPPXQLFDWLRQHJ3$&725WKH
VSHFLILHGPRGHRIFRPPXQLFDWLRQZLOOEHHQWHUHGDXWRPDWLFDOO\XSRQSRZHUXSRUUHVHWZLWKRXWDQ\
VLJQRQPHVVDJH
127(,IVHWWR)(&RU1$97(;\RXZLOOQRWUHFHLYHDQ\PHVVDJHRQ\RXUWHUPLQDOZKHQWKHXQLWLV
SRZHUHGXS7RH[LWDQ\RIWKHVHPRGHVW\SH&WUO&!WKHQWKHOHWWHU;
7KHUHDUHWKUHHZD\VWRLQLWLDWH3DFNHWFRPPXQLFDWLRQXVLQJ302'(7RVWDUW3DFNHWZLWKWKH
FRPPDQGOLQHFPGVHW302'(WR121(7RVWDUWLQ&RQYHUVPRGHRI3DFNHWVHW302'(WR
&2197RVWDUWLQ7UDQVSDUHQWPRGHRI3DFNHWVHW302'(WR75$16
([LWLQJ7UDQVSDUHQW0RGHRI3DFNHWZLWKWKUHH&WUO&!VZLOOUHWXUQWR&RPPDQG0RGH
6HHDOVR,17)$&(3257
3257^_`
'HIDXOW
6HOHFWWKHGHIDXOWUDGLRSRUWZKHQSRZHULVDSSOLHGRUDIWHUDUHVHW
$IWHUFKDQJLQJWKH3257VHWWLQJDVRIWUHVHWLVUHTXLUHGWRHQDEOHWKHFKDQJHE\SRZHU2))21RU
E\5(6(7FRPPDQG
7RVZLWFKIURPWKHFXUUHQWUDGLRSRUWWRWKHRWKHUWKH675($06:FDQEHXVHG
67$786ZLOOUHSRUWWKHFXUUHQWO\DFWLYH,2SRUWDQGVWUHDP
6HHDOVR5(6(7675($06:
3526,*1QQ ))
GHIDXOW&?
'HILQHVWKHFKDUDFWHUXVHGWRLQWURGXFHD&:SURVLJQZKHQWUDQVPLWWLQJLQ&:PRGH
:KHQWKHVHOHFWHGFKDUDFWHULVHQWHUHGGXULQJ&:WUDQVPLVVLRQRUZLWKLQWH[WWREHXVHGIRU&:
WUDQVPLVVLRQLWZLOOFDXVHWKH1(;77:2FKDUDFWHUVFRGHVWREHFRPELQHG
)RUH[DPSOH?$6ZLOOFDXVHWKHFRGHVIRU$DQG6WREHFRPELQHGLQWRWKHZDLWFRGHRU$6
6HHDOVR0256(&2'(
37'2:1QQ GHIDXOW
6HWVWKHQXPEHURIFRQVHFXWLYHEDGIUDPHVUHFHLYHGZKLOHLQD3$&725OLQNWRFDXVHDGHFUHDVHLQ
VSHHGWREDXG
37(556QQ GHIDXOW
6HWVWKHWLPHRXWDWWHPSWVZKHQDWWHPSWLQJWROLQNZLWKRUGXULQJDOLQNWRDQRWKHUVWDWLRQLQ
3$&725PRGH
$IWHUQOLQNDWWHPSWVZLWKRXWUHVSRQVHDOLQNDWWHPSWZLOOHQGUHWXUQLQJWR3$&7256WDQGE\PRGH
'XULQJDOLQNZLWKDQRWKHU3$&725VWDWLRQUHFHSWLRQRIQFRQVHFXWLYHIDXOW\IUDPHVUHVXOWVLQD
WLPHRXWUHWXUQLQJWR6WDQGE\PRGH
37(;7WH[WXSWRFKDUDFWHUV
GHIDXOWEODQN
6SHFLILHVWKHWH[WVHQWZLWKWKHLQLWLDO3%%6SHUVRQDOPDLOER[VLJQRQPHVVDJHWRDVWDWLRQ
FRQQHFWLQJWRWKH3%%6
$FFHSWVDQ\FRPELQDWLRQRIFKDUDFWHUVDQGVSDFHVXSWRDPD[LPXPRI
(QWHULQJ37(;7ZLOOHUDVHDQ\WH[WHQWHUHG
6HHDOVR3%%6
37)(&63'^_`
GHIDXOW
6HWWKHVSHHGXVHGLQ3$&725)(&WUDQVPLVVLRQV
:KHQVHWWRWUDQVPLVVLRQVZLOOEHDWEDXG
:KHQVHWWRWUDQVPLVVLRQVZLOOEHDWEDXG
37+8))^21_2))`
GHIDXOW2))
:KHQ21WKLVFRPPDQGDOORZV+XIIPDQFRPSUHVVLRQRIELWGDWDLQ3$&725PRGH&RPSUHVVLRQ
LVXVHGRQO\ZKHQLWZLOOUHVXOWLQJUHDWHUWKURXJKSXW
$Q\IUDPHVFRQWDLQLQJELWGDWDDUHQRWVXEMHFWWR+XIIPDQFRPSUHVVLRQ
:KHQ2))+XIIPDQFRPSUHVVLRQLVGLVDEOHG
37/,67(1
LPPHGLDWH
(QWHUVWKH3$&725/LVWHQPRGHDQGDOORZVUHFHSWLRQDQGGLVSOD\RI3$&725)(&RU$54
OLQNHG3$&725VLJQDOVIURPRWKHUVWDWLRQV
7UDQVPLWFDQQRWEHLQLWLDWHGZKLOHLQWKLVPRGH
8VHWKH&WUO&!;GLUHFWLYHWRUHWXUQWRWKHFRPPDQGPRGH
37537QQ GHIDXOW
:KHQWUDQVPLWWLQJLQ3$&725)(&FKDUDFWHUVDUHWUDQVPLWWHGQWLPHV
7KLVLVGRQHWRLPSURYHWKHFKDQFHVRIRWKHUVWDWLRQVFRS\LQJ\RXUPHVVDJHVLQFH)(&WUDQVPLVVLRQV
GRQRWXVHPHPRU\$54
376, ^21_2))`
GHIDXOW2))
:KHQ2))VXSHUYLVRU\LQIRUPDWLRQH[FKDQJHGEHWZHHQ3$&725VWDWLRQVLVQRWGLVSOD\HG
:KHQ21VXSHUYLVRU\LQIRUPDWLRQLVGLVSOD\HG
37680QQ GHIDXOW
:KHQOLQNHGWRDQRWKHUVWDWLRQLQ3$&725PRGHQUHFHLYHGIUDPHVDUHVWRUHGLQDQDWWHPSWWR
DVVHPEOHDYDOLGIUDPHDSURFHVVFDOOHGPHPRU\$54
:KHQIUDPHVZLWKDQLQYDOLG&5&FKHFNVXPDUHUHFHLYHGWKH\DUHVWRUHGLQPHPRU\
:KHQWKHVHQGLQJVWDWLRQUHSHDWVWKHIUDPHDQGLIWKHFKHFNVXPLVDJDLQLQYDOLGWKDWIUDPHDQGWKH
SUHYLRXVLQYDOLGIUDPHVZLOOEHXVHGLQDQDWWHPSWWRDVVHPEOHDJRRGIUDPHE\FRPELQLQJWKH
IUDPHVUHFHLYHG
3775,(6QQ GHIDXOW
6HWVWKHPD[LPXPQXPEHURIDWWHPSWVWRLQFUHDVHWKHVSHHGRID3$&725OLQNWREDXG
,IXQVXFFHVVIXODIWHUQDWWHPSWVWKHOLQNZLOOUHPDLQDWEDXGXQWLOWKHQXPEHURIFRQVHFXWLYHJRRG
IUDPHVDVVSHFLILHGE\3783KDYHEHHQUHFHLYHG
6HHDOVR3783
3783QQ GHIDXOW
6HWVWKHQXPEHURIFRQVHFXWLYHJRRG3$&725IUDPHVWREHUHFHLYHGEHIRUHUHTXHVWLQJDVSHHG
LQFUHDVHWREDXG
5$1*(
GHIDXOW
&RQYHUWVDQDORJLQSXWVLQWRYROWLQSXWUDQJHDWWKHX3SLQWRWKHVSHFLILHGGHFLPDOYDOXH
UDQJH
6HHDOVR$1$/2*7(/(0(75<
5%$8'QQ EDXG
GHIDXOW
6HWVWKHGHIDXOWEDXGUDWHXVHGZKHQHQWHULQJ577<PRGH
:KHQRSHUDWLQJLQWKH577<PRGHW\SLQJWKH&WUO&!GLUHFWLYHZLOODOVRVZLWFKWRWKH5%$8'
UDWH
6HHDOVR302'(577<
5(',63/$QQ ))
GHIDXOW&WUO5!
'HILQHVWKH5(',63/$<LQSXWHGLWLQJFKDUDFWHU
7KHSDUDPHWHUQLVWKH$6&,,FRGHIRUWKHFKDUDFWHUWKDWZLOO5(',63/$<WKHSDFNHWRUFRPPDQG
FXUUHQWO\EHLQJHQWHUHG
6HHDOVR%.21'(/&$1/,1(&$13$&)/2:
5(/,1.^21_2))`
0XOWL3RUW
GHIDXOW2))2))
:KHQ2))WKH71&RSHUDWLQJZLWK$;/921GRHVQRWDWWHPSWWRDXWRPDWLFDOO\UHFRQQHFWDIWHU
DGLVFRQQHFWKDVRFFXUHG
:KHQ21WKH71&RSHUDWLQJZLWK$;/921ZLOODWWHPSWWRDXWRPDWLFDOO\UHFRQQHFWDIWHU
5(75<LVH[FHHGHG
,IXVLQJ$;/HYHO9HUVLRQ$;/92))WKLVFRPPDQGKDVQRHIIHFW
6HHDOVR$;/95(75<75,(6
5(3+$6(^21_2))`
GHIDXOW21
:KHQ21DQGOLQNHGWRDQRWKHUVWDWLRQLQ0RGH$$0725UHSHDWHGHUURUVZLOOFDXVHDQDXWRPDWLF
DWWHPSWWR5(3+$6(ZLWKWKHRWKHUVWDWLRQ
:KHQ2))UHSHDWHGHUURUVZLOOFDXVHDUHWXUQWR$07256WDQGE\PRGH
6HHDOVR$54,'
5(6(7
LPPHGLDWH
:KHQHQWHUHGFDXVHVDVRIWUHVHWVDPHDVDSRZHURIIRQ
&RQWHQWVRIWKHPDLOER[3%%6DUHNHSWDQGWKH1'+($5'0+($5'DQG3+($5'ORJVDUHQRW
FOHDUHG
$Q\H[LVWLQJFRQQHFWLRQVZKLFKKDYHQRWEHHQ&213(50HGZLOOEHORVWHYHQWKRXJKWKHRWKHU
VWDWLRQVWLOOLQGLFDWHVDFRQQHFWLRQWR\RXUVWDWLRQ7KHLQLWLDOVLJQRQPHVVDJHZLOOEHGLVSOD\HG
6RPHRIWKHFRPPDQGVUHTXLUHDVRIWUHVHWWRHQDEOHFKDQJHVPDGHWRWKHLUSDUDPHWHUV
6HHDOVR,17)$&(0$;86(560<5(027(18012'(63%%65(6725(
5(6725('()$8/7
LPPHGLDWH
(QWHULQJ5(6725('ZLOOFDXVHDOOFRPPDQGDQGSDUDPHWHUFKDQJHVWREHORVWUHWXUQLQJWKHPWR
IDFWRU\GHIDXOWVHWWLQJV
3%%6PHVVDJHVDQGDOORWKHUGDWDVWRUHGLQEDWWHU\EDFNHGPHPRU\ZLOOEHORVW
7KH71&PXVWWKHQEHUHLQLWLDOL]HG
6HHDOVR5(6(7
5(75<QQ 0XOWL3RUW
GHIDXOW
6SHFLILHVWKHQXPEHURIWLPHVDSDFNHWWKDWUHTXLUHVDQDFNQRZOHGJHPHQWZLOOEHWUDQVPLWWHG
3DFNHWVDUHUHWUDQVPLWWHGQWLPHVEHIRUHDQRSHUDWLRQLVDERUWHGGXHWRQRUHVSRQVH7KHWLPH
EHWZHHQUHWULHVZKHQQRDFNQRZOHGJPHQWLVUHFHLYHGLVVSHFLILHGE\WKHFRPPDQG)5$&.
6HHDOVR$;/9)5$&.5(/,1.75,(6
5,1*^21_2))`
GHIDXOW21
:KHQ21WKUHHEHOOFKDUDFWHUVDUHVHQWWRWKHWHUPLQDOZLWKHDFK&211(&7('72
PHVVDJHZKHQDQRWKHUVWDWLRQLQLWLDWHVWKHFRQQHFW
5157,0(QQ GHIDXOW
5157,0(LVVHWLQVHFRQGLQFUHPHQWV
,IDFRQQHFWLRQVWD\VLQDUHPRWHGHYLFHEXV\VWDWHFRQWLQXHVWRUHFHLYH515IUDPHVIRU5157,0(
WKH71&ZLOOGLVFRQQHFW
,ID.$1RGHFRQQHFWLRQVWD\VLQDUHPRWHGHYLFHEXV\VWDWHIRU5157,0(WKH.$1RGHZLOO
GLVFRQQHFWERWKWKHLQSXWDQGRXWSXWVLGHVRIWKDW.$1RGHFLUFXLW
6HWWLQJ5157,0(WRGLVDEOHVWKLVIXQFWLRQ
6HHDOVR05(63
535,17WH[WWH[WXSWRDERXWFKDUDFWHUV
LPPHGLDWH
(QWHULQJ535,17DQGDVWULQJRIWH[WFKDUDFWHUVZLOOFDXVHWKRVHFKDUDFWHUVWREHRXWSXWWKURXJKWKH
$8;SRUW
,WLVLQWHQGHGWRDOORZDUHPRWH6<623IURPDVWDWLRQFRQQHFWHGWRDQGXVLQJWKH0<5(027(
IXQFWLRQRIWKLV71&WRVHQGDVWULQJRIWH[WWRDGHYLFHDWWDFKHGWRWKH$8;VHULDOSRUW
)RUH[DPSOHWKHVWULQJRIWH[WFRXOGEHDFRPPDQGWRFKDQJHWKHFRQILJXUDWLRQRID*36XQLWRUWR
FKDQJHFRQILJXUDWLRQVHWWLQJVLQWKHFRQWUROOHURIDUHSHDWHUFDQQRWEHXVHGZKHQWKH$8;SRUWLV
FRQILJXUHGLQ1(7520PRGH
57(;7WH[WWH[WXSFKDUDFWHUV
GHIDXOWEODQN
6HWVDSDVVZRUGVWULQJIRUUHPRWHDFFHVV
:KHQFRQQHFWLQJIURPDUHPRWHVWDWLRQWRWKH0<5(027(RUDWWHPSWLQJWRHQWHUWKH6<623PRGH
RIWKH3%%6WKH71&ZLOOVHQGWKUHHOLQHVRIILYHQXPEHUVHDFKRIZKLFKRQHOLQHPXVWEHSURSHUO\
GHFRGHGPDWFKLQJSRVLWLRQQXPEHUZLWKVWULQJFKDUDFWHUDQGUHWXUQHG
6HHDOVR3%%6DQG5HPRWH$FFHVVLQWKH2SHUDWLRQVVHFWLRQV
577<QQ EDXG
LPPHGLDWH
:KHQHQWHUHGDORQHHQWHUVWKH577<PRGHDWWKH5%$8'EDXGUDWH
:KHQHQWHUHGZLWKWKHRSWLRQDOSDUDPHWHUQHQWHUVWKH577<DWWKHEDXGUDWHRIQ
6HHDOVR$8726757&$1/,1(302'(5%$8'
6&5((1/QQ GHIDXOW
8VHGWRIRUPDWGDWDGLVSOD\HGWRWKHWHUPLQDO
:KHQVHWWRDQXPEHUJUHDWHUWKDQDFDUULDJHUHWXUQ&5LVLQVHUWHGLQGDWDGLVSOD\HGWRWKH
WHUPLQDODIWHUQFKDUDFWHUV
:KHQVHWWRGDWDLVGLVSOD\HGDVUHFHLYHG
6HHDOVR$872/)
6(1'3$&QQ ))
GHIDXOW'&WUO0!&5
'HILQHVWKHFKDUDFWHUWKDWZLOOFDXVHDSDFNHWWREHWUDQVPLWWHGLQ&219(560RGH
7KHGHIDXOWFKDUDFWHU&5RUFDUULDJHUHWXUQLVQRUPDOO\VHQWE\DWHUPLQDOSURJUDPZKHQWKH
(17(5RU5(7851NH\LVSUHVVHG
6HHDOVR&3$&7,0(&5
6/277,0(QQ 0XOWL3RUW
GHIDXOW
6SHFLILHVWKHDPRXQWRIWLPHQPLOOLVHFRQGVEHWZHHQVXFFHVVLYHWULHVRIWKHSHUVLVWHQFH
DOJRULWKP
6HHDOVR':$,73(56,67
63$&(QQ GHIDXOW
6HWVWKH63$&(WRQHIUHTXHQF\
7KH63$&(FRPPDQGPXVWEHVHWKLJKHUWKDQWKH0$5.FRPPDQG
1RWH7KH71&VSHFLILFDWLRQVDUHIRU63$&(YDOXHVIURPWKURXJK+LJKHUYDOXHVWR
DUHIRUH[SHULPHQWDOXVH
6HHDOVR/2:721(60$5.
6TXHOFKQQ ±
GHIDXOW
6HWVWKHLQLWLDOVTXHOFKOHYHOLQ36.PRGH
67$57QQ ))
GHIDXOW&WUO4!
'HILQHVWKHFKDUDFWHUWKDWZLOOFDXVHWKH71&WRUHVWDUWVHULDORXWSXWWRWKHWHUPLQDO
,IVHWWRRQO\KDUGZDUHIORZFRQWUROZLOOEHXVHG
6HHDOVR6723;)/2:;2));21
67$786>/21*@
LPPHGLDWH
:KHQHQWHUHGDORQHFDXVHVDGLVSOD\RIWKHQXPEHURIE\WHVDYDLODEOHLHIUHHE\WHVLQWKH56
LQSXWEXIIHUWKHFXUUHQW,2VWUHDPDQGDQ\VWUHDPVKDYLQJDFRQQHFWHGVWDWXV
:KHQHQWHUHGZLWKWKH/21*RSWLRQFDXVHVWKH67$786GLVSOD\WRDOVRLQFOXGHWKHVWDWXVRIDOO
FRQQHFWVWUHDPVDOORZHGE\0$;86(563%%618012'(6DQG0<5(027(
7KHFXUUHQW.$12'(LQSXWDQGRXWSXW,2VWUHDPLVDOVRLQGLFDWHG$SRXQGVLJQLQGLFDWHVWKDW
WKHUHLVXQDFNQRZOHGJHGGDWDLQWKHEXIIHUVIRUWKDWVWUHDP
7KHQXPEHULPPHGLDWHO\IROORZLQJWKHLVWKHQXPEHURIE\WHVRXWVWDQGLQJ
7KHQXPEHULQSDUHQWKHVHVLVWKHQXPEHURISDFNHWVQRW\HWDFNQRZOHGJHG
6HHDOVR&213(500$;86(560<5(027(18012'(63%%6675($06:
6723QQ ))
GHIDXOW&WUO6!
'HILQHVWKHFKDUDFWHUWKDWZLOOFDXVHWKH71&WRVWRSVHULDORXWSXWWRWKHWHUPLQDO
,IVHWWRRQO\KDUGZDUHIORZFRQWUROZLOOEHXVHG
6HHDOVR67$57;)/2:;2));21
675($0&$^21_2))`
GHIDXOW2))
:KHQVHWWR21SDFNHWGDWDUHFHLYHGIURPDFRQQHFWHGVWDWLRQZLOOLQFOXGHWKHFDOOVLJQRIWKDWVWDWLRQ
LI675($0(9LVDOVR21
7KLVVHWWLQJLVKHOSIXOZKHQFDUU\LQJRQPXOWLSOHSDFNHWFRQYHUVDWLRQVE\LQGLFDWLQJWKHFDOOVLJQRI
WKHVWDWLRQVHQGLQJWKHGLVSOD\HGSDFNHWWH[W
6HHDOVR0&21021,725675($0(9
675($0(9^21_2))`
GHIDXOW2))
:KHQ2))WKHVWUHDPLQGLFDWRULVGLVSOD\HGRQO\ZKHQDFKDQJHLQVWUHDPVRFFXUV
:KHQ21SDFNHWGDWDUHFHLYHGIURPDFRQQHFWHGVWDWLRQZLOOLQFOXGHWKHVWUHDPLGHQWLILHURQZKLFK
WKDWVWDWLRQLVFRQQHFWHG6HHDOVR0&21021,725675($0&$675($06:
675($06:QQ ))
GHIDXOW&_
'HILQHVWKHFKDUDFWHUXVHGWRFKDQJHWRDGLIIHUHQWVWUHDPRUSRUW
7RFKDQJHVWUHDPVHQWHUWKHVWUHDPVZLWFKFKDUDFWHUSRUWQXPEHULIVZLWFKLQJUDGLRSRUWVIROORZHG
E\WKHVWUHDPGHVLJQDWRU7KHVWUHDPGHVLJQDWRULVDQDOSKDEHWLFFKDUDFWHU$WKURXJK=RUDWKURXJK]
OLPLWHGE\WKHYDOXHRI0$;86(56
7KHFKDUDFWHUVHOHFWHGFDQEH3$66HGLQWKH&RQYHUV0RGHE\XVLQJDVSHFLDO3$66FKDUDFWHUDQG
ZLOODOZD\VEHSDVVHGDVGDWDLQWKH7UDQVSDUHQW0RGH
,IRSHUDWLQJLQWKH7UDQVSDUHQW0RGHDQG\RXZLVKWRFKDQJHVWUHDPV\RXPXVWILUVWUHWXUQWRWKH
&RPPDQG0RGH
6HHDOVR0$;86(563$6667$786
683/,67>21_2))@>121(_^_`FDOO_FDOOFDOO@
ZKHUHFDOO ^FDOOVLJQ_^_!`FDOOVLJQ_FDOOVLJQ^!_!`FDOOVLJQ`
GHIDXOW2))121(
:KHQ21DQGDFDOOVLJQRUOLVWRIXSWRFDOOVLJQVLVHQWHUHGGLVSOD\RIPRQLWRUHGSDFNHWVIURP
WKRVHFDOOVLJQVZLOOEHVXSSUHVVHG
8SWRFDOOVLJQVPD\EHHQWHUHGDWRQFHXVLQJWKHIRUPDWVKRZQDIWHUWKHFRPPDQGQDPHDQGWKH
QHZOLVWRIIURPWRFDOOVLJQVZLOOUHSODFHDOOSUHYLRXVHQWULHV
$VLQJOHFDOOVLJQFDQEHDGGHGWR683/,67FDOOVLJQWKHOLVWVRORQJDVWKHUHLVURRPIRUWKHQHZ
FDOOVLJQRQWKHOLVWRUUHPRYHGIURP683/,67FDOOVLJQWKHOLVW
$FDOOVLJQHQWHUHGZLWKRXWD66,'ZLOOPDWFKDQ\66,'RIWKDWFDOOVLJQ7RPDWFKDVSHFLILF66,'
RQO\HQWHUWKHFDOOVLJQZLWKWKDW66,'IRUH[DPSOHFDOOVLJQQZKHUHQ :KHQVHWWR2))RU121(683/,67ZLOOQRWSUHYHQWWKHGLVSOD\RISDFNHWVHYHQLILWKDVFDOOVLJQV
OLVWHG
6HOHFWLYHGLVSOD\LVHQDEOHGZKHQRQHRUWZRFDOOVLJQVDUHFRPELQHGZLWKD!DQGRUFKDUDFWHU
1RWHWKDWDQHQWU\RIFDOOVLJQ!FDOOVLJQRUFDOOVLJQ!FDOOVLJQFRXQWVDVRIWKHDOORZHG
FDOOVLJQV
6HHDOVR021,725
7(/(075<QQ GHIDXOW
6HWVWKHLQWHUYDORIWUDQVPLVVLRQRIWKHWHOHPHWU\EHDFRQHYHU\QVHFRQGV:KHQWUDQVPLWWHGLW
ZLOOEHVHQWDVD8,EURDGFDVWSDFNHWDQGZLOOEHDGGUHVVHGWR%($&21YLDDQ\SDWKVSHFLILHGE\WKH
8135272FRPPDQG
:KHQVHWWRWKHWHOHPHWU\EHDFRQLVGLVDEOHG
7KHGDWDFRQWDLQHGLQWKHWHOHPHWU\EHDFRQLVLQWKHIRUP
7QQQDQDQDQDQDQDQDQDQEEEEEEEEZKHUH
‡QQQLVDGHFLPDOFRXQWIRUWKHWHOHPHWU\EHDFRQDQGLVLQFUHPHQWHGHDFKWLPHWKHEHDFRQLV
VHQW:KHQILUVWVWDUWHGRUDIWHUDVRIWUHVHWWKHEHDFRQFRXQWHUEHJLQVDW7$IWHU
UHDFKLQJ7WKHFRXQWHUF\FOHVDURXQGWR7
‡DQWRDQDUHWKHGHFLPDOUHDGLQJVRIWKHFRUUHVSRQGLQJDQDORJLQSXWV
‡EEEEEEEELVWKHELQDU\UHDGLQJRIWKHDQDORJLQSXWSLQVZKHUHE PHDQVD/RJLF
+LJKRQWKHSLQDQGE PHDQVD/RJLF/RZRQWKHSLQ7KHILUVWELQWKHVWULQJRI
ELQDU\GLJLWVLVWKHPRVWVLJQLILFDQWELWDQGWKHODVWELVWKHOHDVWVLJQLILFDQWELW
/HDGLQJ]HURVDUHVKRZQIRUDOOWHOHPHWU\UHDGLQJV
6HHDOVR$1$/2*
725
LPPHGLDWH
(QWHUVWKH7256WDQGE\PRGH
$OORZVIRUDXWRPDWLFUHVSRQVHWRRWKHUVWDWLRQVOLQNUHTXHVWVDGGUHVVHGWR0<6(/&$/
0<37&$//RU0<*7&$//LQ$07253$&725RU*725PRGHV$OVRPRQLWRUHG)(&
EURDGFDVWVZLOOEHGLVSOD\HG
,I,17)$&(LVVHWWR7(50ZKHQDOLQNUHTXHVWIURPDQRWKHUVWDWLRQLVDFNQRZOHGJHGWKHGLVSOD\HG
OLQNPHVVDJHZLOOLQGLFDWHZKLFKPRGHLVEHLQJXVHG
75$&(^21_2))`
0XOWL3RUW
GHIDXOW2))2))
:KHQ21DOOUHFHLYHGIUDPHVDUHGLVSOD\HGLQWKHLUHQWLUHW\LQKH[DGHFLPDOLQFOXGLQJDOOKHDGHU
LQIRUPDWLRQ$OOSDFNHWVZKLFKDUHHOLJLEOHIRUPRQLWRULQJDOVRZLOOEHGLVSOD\HGLQQRUPDOWH[W
:KHQLQWKH+)$54PRGHV$07253$&725RU*725WKH75$&(LQIRUPDWLRQRIHDFK
UHFHLYHGIUDPHZLOOEHGLVSOD\HG
1RWHWKDW75$&(LQIRUPDWLRQLVQRWDYDLODEOHZKHQLQ+267PRGH
75$16
LPPHGLDWH
(QWHUV7UDQVSDUHQW0RGHDQGDOO$6&,,FKDUDFWHUVFDQEHWUDQVPLWWHG
7KHFXUUHQWOLQNVWDWHLVQRWDIIHFWHG
,IWKHFXUUHQWVWUHDPLVDFRQQHFWLRQWRDQRWKHUVWDWLRQFKDUDFWHUVDUHWUDQVPLWWHGWRDQGUHFHLYHGIURP
WKDWVWDWLRQWUDQVSDUHQWO\
,IWKHFXUUHQWVWUHDPLVQRWFRQQHFWHGWRDQ\RWKHUVWDWLRQFKDUDFWHUVFDQEHWUDQVPLWWHGEURDGFDVW
WUDQVSDUHQWO\EXWGLVSOD\RIUHFHLYHGFKDUDFWHUVLVGLVDEOHG
7RH[LW7UDQVSDUHQWPRGHVHQGWKHWUDQVSDUHQWHVFDSHVHTXHQFHDVGHILQHGE\&200$1'DQG
&0'7,0(FRPPDQGVRUVHQGDPRGHP³%5($.´VLJQDOLI%5($.LVVHWWR21
)RUH[DPSOHZLWKGHIDXOWFRPPDQGVHWWLQJV&200$1'VHWWR&75/&DQG&0'7,0(VHW
WRVHFRQGVHQGWKUHH&75/&!FKDUDFWHUVZLWKLQVHFRQGRIHDFKRWKHUZLWKDWVHFRQGRIQR
NH\ERDUGLQSXWEHIRUHDQGDIWHUWKHVHTXHQFH
6HHDOVR%5($.&0'7,0(&200$1'
75)/2:^21_2))`
GHIDXOW2))
(QDEOHVVRIWZDUHIORZFRQWUROIURPWKHFRPSXWHUZKLOHLQWKH7UDQVSDUHQW0RGH67$57DQG6723
FKDUDFWHUVDUHVHQWE\WKHWHUPLQDOSURJUDPWRFRQWUROWKHIORZRIGDWDEHWZHHQWKHFRPSXWHUDQG
71&EXWZLOOQRWDIIHFWFKDUDFWHUVUHFHLYHGLQGDWDIURPDQRWKHUVWDWLRQ
:KHQ2))VRIWZDUHIORZFRQWUROLVQRWXVHGLQ7UDQVSDUHQW0RGHDQGWKRVHFKDUDFWHUVFDQEHVHQWDV
GDWD
+DUGZDUHIORZFRQWUROZLOOEHH[SHFWHGIURPWKHFRPSXWHUE\WKH71&7KHWHUPLQDOSURJUDPPXVW
EHFRQILJXUHGWRXVHKDUGZDUHIORZFRQWURODQGWKH56FDEOHPXVWLQFOXGH576DQG&76OLQHV
,I67$57DQG6723DUHERWKVHWWRYDOXHVRQO\KDUGZDUHIORZFRQWUROFDQEHXVHG
6HHDOVR75$167;)/2:;)/2:
75,(6>Q@Q ,VDFRXQWHUXVHGWRNHHSWUDFNRIWKHQXPEHURIDWWHPSWVPDGHWRUHVHQGDSDFNHWRQWKHFXUUHQW
VWUHDPZKLFKIDLOHGWRUHDFKLWVGHVWLQDWLRQ
,WFDQEHPDQXDOO\VHWXVXDOO\WRDORZHUQXPEHUWRDOORZPRUHDWWHPSWVWREHPDGHRUWRLWV
PD[LPXPWRHQGDWWHPSWVRQWKHFXUUHQWVWUHDP
6HHDOVR5(75<
7;'(/$<QQ 0XOWL3RUW
GHIDXOW
6HWVWKHNH\XSGHOD\QPVEHWZHHQDVVHUWLRQRI377DQGEHJLQQLQJRISDFNHWGDWD)ODJV
FKDUDFWHUVWREHJLQSDFNHWDUHVHQWGXULQJWKHGHOD\
,WVKRXOGEHVHWWRDOORZHQRXJKWLPHIRUWKHWUDQVPLWWHUDQGDPSOLILHULIXVHGWRFRPHXSWRIXOO
SRZHUDQGWKHRWKHUVWDWLRQVUHFHLYHUWRGHWHFWWKHVLJQDOEHIRUHGDWDLVVHQW,IVHWWRRVKRUWWKH
EHJLQQLQJRIWKHSDFNHWPD\QRWEHUHFHLYHGE\DQRWKHUVWDWLRQDQGWKHHQWLUHSDFNHWZLOOEHORVW
,IVHWWRRORQJXQQHFHVVDU\DGGLWLRQDOIODJVZLOOEHVHQWDWWKHEHJLQQLQJRIWKHSDFNHWKHDUGDVD
UHSHWLWLYHVRXQGPDNLQJHDFKSDFNHWORQJHUDQGZDVWLQJDLUWLPH
7;')(&QQ GHIDXOW
6HWVWKHQXPEHURIH[WUDVHFRQGVRISKDVLQJVLJQDOVDWWKHEHJLQQLQJRIDQ$0725)(&WUDQVPLVVLRQ
,WDOORZVPRUHWLPHIRUDUHFHLYLQJVWDWLRQWRWXQH\RXU)(&WUDQVPLVVLRQDQGREWDLQDORFNFRQGLWLRQ
EHIRUHWUDQVPLVVLRQRIGDWD
6HHDOVR)(&
7;'725QQ GHIDXOW
6HWVWKHNH\XSGHOD\XVHGLQ$54OLQNVLQ$0725*725DQG3$&725PRGHV(DFKQXPEHU
LQFUHPHQWVHWVDPXOWLSOHRIPV
7;)/2:^21_2))`
GHIDXOW2))
$OORZVWKH71&WRVHQGVRIWZDUHIORZFRQWURO;21DQG;2))WRVWRSDQGUHVWDUWWKHIORZRIGDWD
IURPWKHFRPSXWHUZKLOHLQWKH7UDQVSDUHQW0RGH
:KHQ7;)/2:LV2))KDUGZDUHIORZFRQWUROPXVWEHXVHGEHWZHHQWKHFRPSXWHUDQG71&576
DQG&76PXVWEHFRQQHFWHGEHWZHHQWKH71&DQGFRPSXWHUIRUKDUGZDUHIORZFRQWURO
:KHQ7;)/2:LV21VRIWZDUHIORZFRQWUROEHWZHHQWKH71&DQGFRPSXWHULQ7UDQVSDUHQW0RGH
ZLOOGHSHQGRQWKHVHWWLQJRI;)/2:;)/2:21HQDEOHVVRIWZDUHIORZFRQWURO;)/2:2))
GLVDEOHVLW
:KHQVRIWZDUHIORZFRQWUROLVHQDEOHGWKH71&ZLOOVHQGWKH;21DQG;2))FKDUDFWHUVWRWKH
FRPSXWHUWRFRQWUROGDWDIORZ
:KHQVHWIRUVRIWZDUHIORZFRQWURODOOFKDUDFWHUVFDQEHVHQWLQ7UDQVSDUHQW0RGHLQFOXGLQJWKH
;21DQG;2))FKDUDFWHUVE\VHWWLQJ7;)/2:21;)/2:21DQG75)/2:2))<RXZLOO
QRWKRZHYHUEHDEOHWRUHFHLYHWKH67$57DQG6723FKDUDFWHUVVLQFH\RXUWHUPLQDOSURJUDPVKRXOG
LQWHUSUHWWKHPDVIORZFRQWURO
6HHDOVR75$1675)/2:;)/2:
8,',*,21>_@FDOO>FDOO>FDOO>FDOO@@@
0XOWL3RUW
GHIDXOW2))121(2))121(
8SWRFDOOVLJQVFDQEHVSHFLILHGIRUVSHFLDOGLJLSHDWHUGXW\IRUXQQXPEHUHGLQIRUPDWLRQ8,!
SDFNHWV
,IDQ\RIWKH8,',*,FDOOVDSSHDUVLQWKHWREHGLJLSHDWHGILHOGRID8,SDFNHWDQGLI0<&$//GRHV
QRWDSSHDULQWKHVRXUFHILHOGRUDQ\RIWKHKDVEHHQGLJLSHDWHGILHOGVWKH8,',*,FDOOLQWKHWREH
GLJLSHDWHGILHOGZLOOEHUHSODFHGE\0<&$//ZLWKWKH+ELWVHWDQGWKHSDFNHWZLOOEHGLJLSHDWHG
6HHDOVR':$,73(56,678,':$,78135272
8,':$,7>21_2))@
0XOWL3RUW
GHIDXOW2))2))
:KHQ8,':$,7LV2))VSHFLDOGLJLSHDWSDFNHWVWKRVHIRUPHGE\8,',*,8,)/22'RU
8,75$&(RQO\KDYHWKHLUXVXDOFKDQQHODFFHVVWKHUHLVQRZDLW':$,7RU6/277,0( DGGHG
EHIRUHWUDQVPLVVLRQRQFHWKHFKDQQHOLVFOHDU
+RZHYHULI8,':$,7LVVHW21WKHSDFNHWVZDLWLQJWREHGLJLSHDWHGZLOOEHVXEMHFWWRWKHVDPHZDLW
WLPHVDVQRWWREHGLJLSHDWHGSDFNHWVDZDLWLQJWUDQVPLVVLRQ
%\VXEMHFWLQJVSHFLDOWREHGLJLSHDWHGSDFNHWVWRDGHOD\GHWHUPLQHGE\6/277,0( DQG3(56,67
LWLVPRUHOLNHO\WKDWWREHGLJLSHDWHGSDFNHWVRIWZRRUPRUHVWDWLRQVLQWKHVDPHYLFLQLW\ZRXOGQRW
FROOLGH7KLVPD\EHJRRGLIRQHZDQWVWRJXDUDQWHHWKDWDGLJLSHDWHGSDFNHWZLOOPDNHLWRXWRILWV
QHLJKERUKRRGEXWEDGLIRQHZLVKHVWROLPLWWKHQXPEHURIWLPHVDSDFNHWLVUHGLJLSHDWHGVXFKDVLQ
$356DSSOLFDWLRQV
6HHDOVR':$,73(56,678,':$,7
8,)/22'QDPHQ>,'_12,'@QDPH FKDUPD[Q 0XOWL3RUW
GHIDXOWGLVDEOHG12,'GLVDEOHG12,'
:KHQD8,IUDPHLVUHFHLYHGZLWKDFDOOLQWKHWREHGLJLSHDWHGILHOGRIWKHIRUP
QDPH
[\ZKHUH[LV
DQXPEHUDSSHQGHGWR
QDPH
DQG\LVDVVLGWKHVVLGLVGHFUHPHQWDQGWKH8,IUDPHLV
GLJLSHDWHGZLWKRXWVHWWLQJWKH+ELW
:KHQWKHSDFNHWLVGLJLSHDWHGDFKHFNVXPLVIRUPHGRYHUWKHVRXUFHGHVWLQDWLRQDQGGDWDILHOGVRI
WKHSDFNHW7KLVFKHFNVXPLVNHSWIRUQVHFRQGV,IDQLQFRPLQJ8,SDFNHWLVHOLJLEOHIRU
GLJLSHDWLQJDVDERYHEXWLWVFKHFNVXPPDWFKHVRQHRIWKRVHEHLQJVDYHGWKHSDFNHWLVGLVFDUGHGQRW
GLJLSHDWHG
7KHEXIIHUKROGVDPD[LPXPRIFKHFNVXPV,IWKHRSWLRQDOSDUDPHWHU,'LVVHOHFWHGWKH0<&$//
FDOOVLJQLVLQVHUWHGLQDQDGGLWLRQDOGLJLSHDWHUDGGUHVVILHOGZLWKLWV+ELWVHW
6HHDOVR8,':$,7
8,*$7(>21_2))21_2))@
0XOWL3RUW
GHIDXOW2))2))
:KHQVHWWR21IRUHLWKHUSRUWUHFHLYHGWREHGLJLSHDWHGSDFNHWVDGGUHVVHGWRWKH0<*$7(FDOOVLJQ
ZLOOEHUHWUDQVPLWWHGRXWWKHRSSRVLWHSRUWIURPZKLFKWKH\ZHUHUHFHLYHG
:KHQVHWWR2))IRUHLWKHUSRUWUHFHLYHGWREHGLJLSHDWHGSDFNHWVDGGUHVVHGWRWKH0<*$7(
FDOOVLJQZLOOEHLJQRUHG
7KHVHWWLQJVFDQEHXVHGWRDOORZJDWHZD\GLJLSHDWLQJIURPRQHSRUWWRDQRWKHUDQGSUHYHQW
GLJLSHDWLQJLQWKHRWKHUGLUHFWLRQIRUH[DPSOHDOORZEDXGWREDXGGLJLSHDWLQJEXWSUHYHQW
EDXGWREDXGGLJLSHDWLQJWRDYRLG³IORRGLQJ´DQ+)FKDQQHOZLWK9+)SDFNHWV
6HHDOVR',*,3($70<*$7(
8,75$&(QDPH
0XOWL3RUW
GHIDXOWGLVDEOHGGLVDEOHG
:KHQD8,IUDPHLVUHFHLYHGZLWKDFDOOLQWKHWREHGLJLSHDWHGILHOGRIWKHIRUP
QDPH
[\ZKHUH[LV
DQXPEHUDSSHQGHGWR
QDPH
DQG\LVDVVLGDQG0<&$//GRHVQRWDSSHDULQWKHVRXUFH
ILHOGRUDQ\RIWKHKDVEHHQGLJLSHDWHGILHOGV0<&$//ZLWKWKH+ELWVHWLVLQVHUWHGEHIRUHWKHWREH
GLJLSHDWHGILHOGWKHVVLGRIWKHWREHGLJLSHDWHGILHOGLVGHFUHPHQWHGDQGWKH8,IUDPHLVGLJLSHDWHG
ZLWKRXWVHWWLQJWKH+ELWRIWKHWREHGLJLSHDWHGILHOG
,IWKHSDFNHWVKRXOGDOUHDG\KDYHGLJLSHDWHUILHOGV0<&$//LVQRWLQVHUWHG
6HHDOVR':$,73(56,678,':$,7
8135272^FDOO>9,$FDOOFDOOFDOO@_121(`
0XOWL3RUW
GHIDXOW&4&4
6HWVDGHVWLQDWLRQDGGUHVVIRUXQFRQQHFWHGSDFNHWEURDGFDVWVDV8,!SDFNHWIUDPHVDQGVSHFLILHV
QDPHVRIDQ\GLJLSHDWHUVWDWLRQVXSWRDWRWDORIWRUHWUDQVPLWWKHSDFNHW
7KHGLJLSHDWHUOLVWLVDOVRXVHGZKHQEURDGFDVWLQJ%($&21DQG,'SDFNHWV
,I8135272LVVHWWR121(QRXQFRQQHFWHGSDFNHWVZLOOEHVHQWH[FHSWIRU%($&21DQG,'
(DFKFDOOVLJQPD\DOVRKDYHDQRSWLRQDO6HFRQGDU\6WDWLRQ,GHQWLILHU66,'VSHFLILHGDVQZKHUHQ
7KHGLJLSHDWFDOOVLJQVDUHVSHFLILHGLQWKHRUGHULQZKLFKWKH\DUHWRUHOD\WUDQVPLWWHGSDFNHWV
6HHDOVR%($&21,'021,7250537
86(56QQ 0XOWL3RUW
GHIDXOW
6SHFLILHVWKHQXPEHURIFKDQQHOVVWUHDPVZKLFKPD\EHDYDLODEOHWRLQFRPLQJSDFNHWFRQQHFW
UHTXHVWVIURPRWKHUVWDWLRQV,WLVXVHGWROLPLWWKHQXPEHURIRWKHUVWDWLRQVDOORZHGWRFRQQHFWDWRQH
WLPH
$FFHSWHGSDFNHWFRQQHFWVZLOOEHDVVLJQHGWRWKHORZHVWDYDLODEOHFKDQQHOEHJLQQLQJZLWK$,IDOO
DYDLODEOHFKDQQHOVDUHDOUHDG\FRQQHFWHGWRRWKHUVWDWLRQVD'0!SDFNHWZLOOEHVHQWEDFNWRWKH
UHTXHVWLQJVWDWLRQDQGWKHPHVVDJHFRQQHFWUHTXHVWFDOOZLOOEHRXWSXWWRWKHWHUPLQDOLI
SHUPLWWHG
,I86(56LVVHWWRDOOSDFNHWFRQQHFWUHTXHVWVIURPRWKHUVWDWLRQVZLOOEHGHQLHG
7KHPD[LPXPQXPEHURI86(5VWKDWFDQEHVSHFLILHGLVOLPLWHGE\0$;86(56,IDQDWWHPSWLV
PDGHWRVHW86(56WRDQXPEHUKLJKHUWKDQ0$;86(56WKHH[WUDLVLJQRUHGDQGWKHPHVVDJH
86(56/,0,7('%<0$;86(56ZLOOEHGLVSOD\HG
6HHDOVR,17)$&(0$;86(56675($0&$675($0(9675($06:
8626^21_2))`
GHIDXOW21
:KHQ21DQGDQXPEHUVVKLIWKDVEHHQUHFHLYHGWKHQH[WVSDFHUHFHLYHGZLOOFDXVHDQXQVKLIWWR
OHWWHUVLQ%$8'27577<
,I&2'(LVVHWWR/&577<DVSDFHZLOOVKLIWWRORZHUFDVH
9(56,21
LPPHGLDWH
&DXVHVDGLVSOD\RIWKHPRGHOQDPHDQGFXUUHQWILUPZDUHYHUVLRQ
:()$;QPQ P RU
LPPHGLDWH
(QWHUVWKH:HDWKHU)DFVLPLOH:()$;GHPRGXODWLQJPRGH,WDOVRUHTXLUHVWKHHQWU\RIQVDPSOHV
SHUVHFRQGDQGPQXPEHURIELWVSHUSL[HOZKLFKVHWVWKHQXPEHURIJUH\OHYHOVRIHDFKSL[HO
7KHDXGLRLQSXWLVVDPSOHGQWLPHVSHUVHFRQG(DFKVDPSOHEHFRPHVRQHGDWDSRLQWVHQWRYHUWKH
VHULDOSRUWWRWKHFRPSXWHUZKHUHLWZLOOEHXVHGWRGLVSOD\DVLQJOHSL[HORQDZHDWKHUPDS
,IP RUD%/$&.:+,7(GHFLVLRQLVPDGHRQHDFKVDPSOH,IPLVVSHFLILHGDVWZRELWVRI
GDWDUHSUHVHQWLQJJUH\OHYHOVDUHFRQYH\HGWRWKHVHULDOSRUWIRUHDFKSL[HODQGLIPLVVHWWRELWV
UHSUHVHQWLQJJUH\OHYHOVDUHFRQYH\HGWRWKHVHULDOSRUW
7RDYRLGRYHUUXQQLQJWKHVHULDOSRUWVHWWKHVHULDOSRUW
VUDWHWRJUHDWHUWKDQQ[P[;
$VSHFLDOFRPSXWHUSURJUDPPXVWEHXVHGWRGLVSOD\:()$;PDSVVHQWYLDWKHVHULDOSRUW
6HHDOVR'$<7:($.:()$;5HFHSWLRQ0RGHVLQWKH2SHUDWLRQVVHFWLRQ
:7(;7WH[WXSWRFKDUDFWHUV
GHIDXOW^'(0<&$//`
6SHFLILHVWKHWH[WWREHVHQWLQUHVSRQVHWRDUHFHLYHG:58ZKRDUH\RXFRPPDQGZKLOHOLQNHGLQ
$0725$54PRGHRQO\
$FFHSWVDQ\FRPELQDWLRQRIFKDUDFWHUVDQGVSDFHVXSWRDPD[LPXPOHQJWKRI
(QWHULQJDVLQJOHZLOOFOHDU:7(;7
7RXVHWKH:7(;7DVDQDXWRPDWLFORJRQIRU$3/,1.%%6V\VWHPVVHWWKH:7(;7WR'(
FDOOVHOFDO"RU45$FDOOVHOFDO"%HVXUHWRLQFOXGHWKH"DVSDUWRIWKH:7(;7
;)/2:^21_2))`
GHIDXOW21
:KHQ21VRIWZDUHIORZFRQWUROZLOOEHLPSOHPHQWHGDFFRUGLQJWRWKHVHWWLQJVRI67$576723
;21;2))
)RUQRUPDOVRIWZDUHIORZFRQWUROVHW;)/2:2167$576723;21DQG;2))
7KH71&H[SHFWVWKHFRPSXWHURUWHUPLQDOWRUHVSRQGWRWKHIORZFRQWUROFKDUDFWHUV;21DQG
;2))DQGWKH71&UHVSRQGVWRWKH67$57DQG6723FKDUDFWHUVIURPWKHFRPSXWHU
:KHQVHWWR2))WKH71&ZLOORQO\XVHDQGUHFRJQL]HKDUGZDUHIORZFRQWUROOLQHV&76DQG576WR
VWDUWRUVWRSGDWD7KH56FDEOHPXVWEHZLUHGDSSURSULDWHO\
,IWKHVRIWZDUHIORZFRQWUROFKDUDFWHUVDUHVHWWRVRIWZDUHIORZFRQWUROLVQRWSRVVLEOH
,QWKH7UDQVSDUHQW0RGHIORZFRQWUROLVDOVRGHWHUPLQHGE\WKHVHWWLQJVRI75)/2:DQG7;)/2:
6HHDOVR67$57672375)/2:7;)/2:;2));21
;.&+.680^21_2))`
GHIDXOW2))
&RQWUROVZKHWKHURUQRWWKH;.,66&+(&.680PRGHLVDFWLYH
$SSOLHVRQO\ZKHQ,17)$&(LVVHWWR;.,66
6HHDOVR;.32//('
;.32//('^21_2))`
GHIDXOW2))
&RQWUROVZKHWKHURUQRWWKH;.,6632//('PRGHLVDFWLYH
$SSOLHVRQO\ZKHQ,17)$&(LVVHWWR;.,66
6HHDOVR;.&+.680
;0,7/9/QQ 0XOWL3RUW
GHIDXOW
6HWVWKHRXWSXWOHYHORIWUDQVPLWDXGLRIURPSRUWVDQG
7KHOHYHOFDQEHVHWPDQXDOO\IRUHDFKRUERWKSRUWVRUFDQEHVHWLQGLYLGXDOO\GXULQJWKH
&$/,%5$7HSURFHGXUH:KLOHLQ&$/,%5$7HPRGHDQGWUDQVPLWWLQJIURPRQHSRUWWKHRXWSXWOHYHO
IRUWKDWSRUWFDQEHDGMXVWHGXSRUGRZQZLWKWKHDQG±NH\V
6HHDOVR&$/,%5$7
;2))QQ ))
GHIDXOW&WUO6!
6HOHFWVWKHFKDUDFWHUVHQWE\WKH71&WRWKHFRPSXWHUWRVWRSLQSXWIURPWKHFRPSXWHU
,IVHWWRKDUGZDUHIORZFRQWUROPXVWEHXVHG)RUVRIWZDUHIORZFRQWUROVHWWKLVSDUDPHWHUWRWKH
FKDUDFWHUWKHFRPSXWHUH[SHFWVWRVHHWRVWRSVHQGLQJGDWDWRWKH71&
6HHDOVR;)/2:;21
;21 QQ ))
GHIDXOW&WUO4!
6HOHFWVWKHFKDUDFWHUVHQWE\WKH71&WRWKHFRPSXWHUWRUHVWDUWLQSXWIURPWKDWGHYLFH
,IVHWWRKDUGZDUHIORZFRQWUROPXVWEHXVHG)RUVRIWZDUHIORZFRQWUROVHWWKLVSDUDPHWHUWRWKH
FKDUDFWHUWKHFRPSXWHUH[SHFWVWRVHHWRUHVWDUWVHQGLQJGDWDWRWKH71&
6HHDOVR;)/2:;2))
$SSHQGL[$,QVWDOODWLRQ
7KLVDSSHQGL[JLYHV\RXDGGLWLRQDOLQIRUPDWLRQRQLQVWDOODWLRQDQGFRQILJXUDWLRQEH\RQGWKDWJLYHQLQ
WKHFKDSWHUVRQ,QVWDOOLQJ\RXU.$0;/DQG3DFWHUP
3UHFDXWLRQV
7KH.$0;/ LVJURXQGHGWKURXJKLWVFRQQHFWLRQVWRWKHWUDQVFHLYHUFRPSXWHUDQGSRZHUVXSSO\
0DNHVXUHWKDWWKHWUDQVFHLYHULVSURSHUO\JURXQGHGDQGWKHFRPSXWHUKDVHTXDOJURXQGSRWHQWLDO
)ROORZWKHJURXQGLQJLQVWUXFWLRQVGHVFULEHGLQWKHWUDQVFHLYHUPDQXDO
7KHWZRSLHFHVRIPXOWLFRQGXFWRUFDEOHSURYLGHGZLWKWKH.$0;/ DUHVKLHOGHG,IXVLQJRWKHU
FDEOLQJEHFHUWDLQLWLVVKLHOGHG:HGRQRWUHFRPPHQGWKHXVHRIXQVKLHOGHGULEERQFDEOHLQDQ
DPDWHXUUDGLRHQYLURQPHQW
7KH.$0;/ LQFOXGHVD/LWKLXP&HOOLQLWVPHPRU\EDFNXSFLUFXLWZKLFKZLOOFDXVHLWWRUHWDLQ
FKDQJHVWRFRPPDQGVSDUDPHWHUVHWWLQJVDQGPDLQWDLQWKHUHDOWLPHFORFN:KHQXVHGLQD71&WKH
/LWKLXP&HOOZLOOW\SLFDOO\ODVWIURPWR\HDUV,WLVDFRPPRQW\SH&5OLWKLXPFHOO
/LWKLXPFHOOVFDQOHDNRUH[SORGHLIKHDWHGGLVDVVHPEOHGUHFKDUJHGH[SRVHGWRILUHRUKLJK
WHPSHUDWXUHRULQVHUWHGLQFRUUHFWO\:KHQUHSODFLQJDVSHQWFHOOIROORZSURSHUGLVSRVDOJXLGHOLQHVIRU
OLWKLXPW\SHFHOOV
&RQQHFWLQJWR5DGLRV
3RUW 7KLVLVDSLQ'%VW\OHFRQQHFWRUZLWKSLQOD\RXWDVVKRZQEHORZ
>GLDJUDPRI'%SLQFRQQHFWRU@
3LQ1R
QDPH
7;$
;&'
377
&75/%
5;$
*1'
)6.
&75/$
*1'
)XQFWLRQ
7UDQVPLWDXGLR$)6.RXW
([WHUQDOFDUULHUGHWHFW
3XVKWR7DON
&RQWUROOLQH%3RUW
5HFHLYHDXGLR$)6.LQ
*URXQG
'LJLWDORXWSXWRI$)6.RXW
&RQWUROOLQH$3RUW
*URXQG
3LQ&RQQHFWVWRWKHPLFURSKRQHLQSXWRIWKHUDGLRSURYLGLQJWKHDXGLRVLJQDO$)6.WREH
WUDQVPLWWHG
3LQ:KHQDJURXQGLVDSSOLHGWRWKLVSLQWKH.$0;/ ZLOOQRWWUDQVPLWSDFNHWV7KLVSLQLV
QRUPDOO\XVHGDVDQH[WHUQDOPHDQVRIVXSSO\LQJFDUULHUGHWHFWEXWFDQDOVREHXVHGDVDKDUGZDUH
WUDQVPLWLQKLELW
3LQ:KHQWKH.$0;/ QHHGVWRNH\WKHWUDQVPLWWHULWZLOODSSO\DJURXQGWRWKLVSLQ7KLVLVDQ
RSHQGUDLQFLUFXLWDQGUHTXLUHVDSRVLWLYHYROWDJHIURPWKHUDGLRQRWWRH[FHHGYROWVDQGP$
3LQ7KLVSLQLVWKH&21752/%RXWSXW,WLVDQRSHQGUDLQFLUFXLWFRQWUROOHGE\WKH&75/
FRPPDQG,WPD\EHXVHGDVDFRQWUROOLQHWRH[WHUQDOGHYLFHVQRWWRH[FHHGYROWVDQGP$
3LQ5HFHLYHDXGLRIURP\RXUUDGLRFRQQHFWVWRWKLVSLQ,WZLOOQRUPDOO\FRQQHFWWRWKHH[WHUQDO
VSHDNHUMDFNRIDUDGLREXWPD\EHFRQQHFWHGWRDUHFHLYHDXGLRSLQIURPDGDWDMDFNRUWKH
PLFURSKRQHFRQQHFWRULQVWHDGLIDYDLODEOH,WVLQSXWLPSHGDQFHLV.EXWFDQEHVHWWRRKPV
E\MXPSHU-
3LQ7KLVSLQLVFRQQHFWHGWRJURXQGVDPHDVSLQ
3LQ7KLVSLQLVDGLJLWDOYHUVLRQRIWKH$)6.RXWSXWRQSLQ(LWKHU77/&026GULYHQRUY
RURSHQGUDLQWUDQVLVWRUDVVHWE\MXPSHU-
3LQ7KLVSLQLVWKH&21752/$RXWSXW,WLVDQRSHQGUDLQFLUFXLWFRQWUROOHGE\WKH&75/
FRPPDQG,WPD\EHXVHGDVDFRQWUROOLQHWRH[WHUQDOGHYLFHVQRWWRH[FHHGYROWVDQGP$
3LQ7KLVSLQLVFRQQHFWHGWRJURXQGVDPHDVSLQ
,QWHUIDFLQJ+DQG+HOG5DGLRV
0RVWKDQGKHOGWUDQVFHLYHUV+7VXVHDQHOHFWUHWW\SHFRQGHQVHUPLFURSKRQHZKLFKUHTXLUHVD
YROWDJHVXSSOLHGIURPWKHUDGLRWRRSHUDWH
7\SLFDOO\+7VREWDLQ3XVK7R7DONNH\LQJE\FRPSOHWLQJDORZLPSHGDQFHFLUFXLWEHWZHHQWKH
PLFURSKRQHLQSXWDQG377JURXQG$GLUHFW377LQSXWWRWKHPLFURSKRQHLQSXWOLQHRIXQLWVZLWKWKLV
W\SHLVQRWXVDEOHZLWKRXWVRPHW\SHRILVRODWLRQ
:KHQLQWHUIDFLQJWRDQ+7LVRODWLRQFLUFXLWU\PXVWEHLQVWDOOHGLQWKHFRQQHFWLQJFDEOHEHWZHHQWKH
71&DQGWKHPLFURSKRQHFRQQHFWRURQWKHUDGLR
*URXQGIRU377DQGDXGLRFLUFXLWVDUHVXSSOLHGWKURXJKWKHH[WHUQDOVSHDNHUMDFNRIWKH+7
:KLOH\RXZLOOQHHGWRFKHFNWKHH[DFWUHTXLUHPHQWVRI\RXU+7WKHIROORZLQJJXLGHOLQHVPD\EH
XVHIXO
$X)FDSDFLWRUQRQSRODUL]HGXVXDOO\LVUHTXLUHGEHWZHHQWKHWUDQVPLWDXGLRRXWSXWOLQHIURPWKH
71&DQGWKHPLFURSKRQHLQSXWRIWKH+7WREORFNWKH'&YROWDJHQRUPDOO\VXSSOLHGE\WKH
PLFURSKRQHFLUFXLWRIWKH+7(YHQLIDFDSDFLWRULVQRWUHTXLUHGIRUFRQQHFWLRQWRDSDUWLFXODUUDGLRLW
FDQVWLOOEHLQVWDOOHGDQGWUDQVPLWDXGLRSDFNHWVZLOOSDVVWKURXJKWRWKHUDGLR
,&20+7UDGLRVNH\WKH377E\SURYLGLQJDORZLPSHGDQFHSDWKIURPWKHPLFURSKRQHLQSXWWR
JURXQG7RDFFRPSOLVKWKLVLQWKHFDEOHEHWZHHQWKH71&DQGWKH+7LQVWDOODUHVLVWRUDSSUR[LPDWHO\
WR.RKPVLQVHULHVZLWKWKH377OLQHIURPWKH.$0;/ WRWKH+7PLFURSKRQHLQSXWLQSDUDOOHO
ZLWKWKHWUDQVPLWDXGLROLQHZLWKLWVFDSDFLWRULQVWDOOHG
7KH,&20$VW\OHZLULQJLVPRVWFRPPRQDQGFDQEHXVHGZLWKPRVW+7UDGLRV
$FRQQHFWLRQWR<$(68DQG5DGLR6KDFN+7VLVVLPLODUEXWXVHVDPRQRSOXJDQGDWR.RKP
UHVLVWRULQWKH377FLUFXLW
.(1:22'+7UDGLRVNH\WKH377OLQHE\FRQQHFWLQJWKHVOHHYHRIWKHPLFURSKRQHFRQQHFWRUWRWKH
VOHHYHRIWKHH[WHUQDOVSHDNHUFRQQHFWRU,QWKLVFDVHDUHVLVWRULVQRWQHHGHGLQWKH377FLUFXLW
6LPSO\FRQQHFWWKH377ZLUHGLUHFWO\WRWKHVOHHYHRIWKHPLFURSKRQHFRQQHFWRU
0RVWQHZHUPRGHO.(1:22'+7V75DQGODWHUXVHDWKUHHSLQPLFURSKRQHFRQQHFWRU7KH
WUDQVPLWDXGLR$)6.VLJQDOIURPWKH.$0;/ FRQQHFWVWRWKH5,1*DQGQRWWKH7,3RIWKH
PLFURSKRQHFRQQHFWRU
3RUW+)DQG3DFNHW
7KHFRQQHFWRUODEHOHG3RUWLVDSLQ'%VW\OHFRQQHFWRUDQGKDVWKHVDPHSLQFRQILJXUDWLRQDQG
IXQFWLRQVDVSRUW
3LQ1R
QDPH
7;$
;&'
377
&75/%
5;$
*1'
)6.
&75/$
*1'
)XQFWLRQ
7UDQVPLWDXGLR$)6.RXW
([WHUQDOFDUULHUGHWHFW
3XVKWR7DON
&RQWUROOLQH%&:.H\RXW3RUW
5HFHLYHDXGLR$)6.LQ
*URXQG
'LJLWDORXWSXWRI$)6.RXW
&RQWUROOLQH$3RUW
*URXQG
3LQ&RQQHFWVWRWKHPLFURSKRQHLQSXWRIWKHUDGLRSURYLGLQJWKHDXGLRVLJQDO$)6.WREH
WUDQVPLWWHG
3LQ:KHQDJURXQGLVDSSOLHGWRWKLVSLQWKH.$0;/ ZLOOQRWWUDQVPLWSDFNHWV7KLVSLQLV
QRUPDOO\XVHGDVDQH[WHUQDOPHDQVRIVXSSO\LQJFDUULHUGHWHFWEXWFDQDOVREHXVHGDVDKDUGZDUH
WUDQVPLWLQKLELW
3LQ:KHQWKH.$0;/ QHHGVWRNH\WKHWUDQVPLWWHULWZLOODSSO\DJURXQGWRWKLVSLQ7KLVLVDQ
RSHQGUDLQFLUFXLWDQGUHTXLUHVDSRVLWLYHYROWDJHIURPWKHUDGLRQRWWRH[FHHGYROWVDQGP$
3LQ7KLVSLQLVWKH&21752/%RXWSXW,WLVDQRSHQGUDLQFLUFXLWFRQWUROOHGE\WKH&75/
FRPPDQG,WPD\EHXVHGDVDFRQWUROOLQHWRH[WHUQDOGHYLFHVQRWWRH[FHHGYROWVDQGP$
7KLVSLQFDQDOVREHXVHGDV&:RXWSXW6HH&:RXWSXWFRPPDQG
3LQ5HFHLYHDXGLRIURP\RXUUDGLRFRQQHFWVWRWKLVSLQ,WZLOOQRUPDOO\FRQQHFWWRWKHH[WHUQDO
VSHDNHUMDFNRIDUDGLREXWPD\EHFRQQHFWHGWRDUHFHLYHDXGLRSLQIURPDGDWDMDFNRUWKH
PLFURSKRQHFRQQHFWRULQVWHDGLIDYDLODEOH,WVLQSXWLPSHGDQFHLV.EXWFDQEHVHWWRRKPV
E\MXPSHU-
3LQ7KLVSLQLVFRQQHFWHGWRJURXQGVDPHDVSLQ
3LQ7KLVSLQLVDGLJLWDOYHUVLRQRIWKH$)6.RXWSXWRQSLQ(LWKHU77/&026GULYHQWRY
RURSHQGUDLQWUDQVLVWRUDVVHWE\MXPSHU-
3LQ7KLVSLQLVWKH&21752/$RXWSXW,WLVDQRSHQGUDLQFLUFXLWFRQWUROOHGE\WKH&75/
FRPPDQG,WPD\EHXVHGDVDFRQWUROOLQHWRH[WHUQDOGHYLFHVQRWWRH[FHHGYROWVDQGP$
3LQ7KLVSLQLVFRQQHFWHGWRJURXQGVDPHDVSLQ
7UDQVPLWOHYHO
7KLVVHFWLRQKDVLQIRUPDWLRQEH\RQGWKDWFRYHUHGLQWKHLQVWDOODWLRQFKDSWHUZKLFKGRFXPHQWVWKH
EDVLFSURFHGXUHVIRUVHWWLQJWUDQVPLWOHYHOIRUSRUW
'ULYHOHYHOIRUWKLVSRUWVKRXOGEHVHWVRWKDW\RXDFKLHYHDGHYLDWLRQRIDERXWN+]LQDQ)0
WUDQVPLWWHURUPDLQWDLQDWUDQVPLWDXGLRVLJQDOZLWKLQWKHQRUPDO$/&UDQJHLQDQ+)66%
WUDQVPLWWHULPSRUWDQWIRU+)PRGHVVXFKDV36.
$VZLWKSRUWGULYHOHYHOIRUSRUWLVVHWGLJLWDOO\XVLQJ\RXUNH\ERDUGDQGWKHWUDQVPLWOHYHO
FRPPDQG;0,7/9/RUWKHFDOLEUDWH&$/FRPPDQG
$SSHQGL[%$GYDQFHG,QIRUPDWLRQ
'LVDVVHPEO\DQG$VVHPEO\
6KRXOG\RXUHTXLUHDFFHVVLQVLGHWKH.$0;/ WRUHSRVLWLRQMXPSHUVRUIRURWKHUSXUSRVHVUHPRYHWKH
WRSFRYHUDVIROORZVZKLOHREVHUYLQJJRRGVWDWLFFRQWUROSURFHGXUHV
7XUQRIISRZHUWRWKH.$0;/DQGUHPRYHDOOFDEOHVIURPWKHXQLW
8VLQJDVPDOO3KLOOLSVVFUHZGULYHUUHPRYHWKHIRXUVFUHZVORFDWHGRQWKHULJKWDQGOHIWVLGHVRI
WKHFRYHUDQGWKHIRXUVFUHZVRQWKHWRSVLGHRIWKHFRYHU
5HPRYHWKHWRSFRYHUIURPWKHXQLW
7KLVZLOOSURYLGHDFFHVVWRWKHWRSRIWKHFLUFXLWERDUGDQGDOODYDLODEOHMXPSHUVDQGLQPRVWFDVHVQR
IXUWKHUGLVDVVHPEO\RIWKHXQLWLVQHFHVVDU\2QO\LIWKHFLUFXLWERDUGPXVWEHUHPRYHGIURPLWV
FKDVVLVVKRXOGIXUWKHUGLVDVVHPEO\EHDWWHPSWHG1RWHWKDWWKLVZLOOYRLGDQ\ZDUUDQW\SURYLGHGE\
.DQWURQLFV
5HPRYHWKHIRXUVFUHZVWKDWVHFXUHWKHFLUFXLWERDUGWRWKHFKDVVLV
5HPRYHWKHWHQVWXGVFUHZVWKDWVHFXUHWKHFRQQHFWRUVWRWKHUHDUSDQHORIWKHFKDVVLV
5HPRYHWKHWKUHHIURQWSDQHOVFUHZVDQGUHPRYHWKHIURQWSDQHO
7KHFLUFXLWERDUGFDQWKHQEHOLIWHGXSDQGRXWRIWKHFKDVVLV7KH.$0;/ XVHVORZLQWHUQDO
RSHUDWLQJYROWDJHVDQGFRPSRQHQWVFDQEHGDPDJHGYHU\HDVLO\E\VWDWLFGLVFKDUJHV2EVHUYHSURSHU
VWDWLFSURWHFWLRQSUHFDXWLRQVZKHQKDQGOLQJWKHFLUFXLWERDUG%HQGLQJRUIOH[LQJWKHFLUFXLWERDUGFDQ
DOVRFDXVHGDPDJH
7RUHDVVHPEOHUHYHUVHWKHDERYHSURFHGXUH
+DUG5HVHW
7KH+$5'5(6(7 SURFHVVLVSURYLGHGWRUHLQLWLDOL]HWKH.$0;/ WRLWVIDFWRU\GHIDXOWYDOXHV7KLV
IXQFWLRQLVHQDEOHGE\VHWWLQJWKH-LQVLGHWKH.$0;/ WRWHVWSRVLWLRQERWKSLQVFRQQHFWHG
WRJHWKHU
7KLVSURFHVVPD\EHFRPHQHFHVVDU\VKRXOGRSHUDWLRQDOSUREOHPVEHHQFRXQWHUHGRUZKHQXSJUDGLQJ
\RXUILUPZDUHWRDQHZYHUVLRQ
'XULQJWKH+$5'5(6(7SURFHGXUHDQLQWHUQDO6(/)7(67LVSHUIRUPHGDQGPHVVDJHVZLOOEH
RXWSXWWRWKHWHUPLQDO7KHUHDGRXWVSHFLILHGLQVWHSEHORZZLOOEHOHJLEOHRQO\LIWKHWHUPLQDOEDXG
UDWHLV
7XUQ2))SRZHUWRWKH.$0;/ DQGUHPRYHWKHWRSFRYHUDVGHVFULEHGLQWKHGLVDVVHPEO\
SURFHGXUH
/RFDWHWKH+DUG5HVHWMXPSHU-5HIHUWRWKHSDUWVORFDWLRQGLDJUDPIRULWVSRVLWLRQKHOSLQ
ORFDWLQJWKHP
3ODFHWKHMXPSHURQERWKSLQV
$SSO\SRZHUWRWKH.$0;/
2EVHUYHRQWKHWHUPLQDOGLVSOD\
&+(&.6802.
««««««««««
««««««««««
««««««««««
««««««««««
5$02.
.%<7(6
5(029(7(67-803(5
7XUQSRZHURII
5HWXUQMXPSHU-WRWKHQRUPDOSRVLWLRQRQHSLQRQO\
5HDVVHPEOHWKH.$0;/ DQGUHWXUQWRRSHUDWLRQ
1RWH 'XULQJWKHKDUGUHVHWSURFHGXUHDOOEDWWHU\EDFNHG5$0PHPRU\ORFDWLRQVDUHWHVWHGZKLFK
ZLOOFDXVHDOOFRPPDQGFKDQJHVDQGPDLOER[PHVVDJHVWREHORVW:KHQWKHUHVHWMXPSHUKDVEHHQ
UHWXUQHGWRLWVQRUPDOSRVLWLRQRSHQHGWKH.$0;/ ZLOOSRZHUXSDVDQHZXQLWZLWKDOOFRPPDQGV
DWIDFWRU\GHIDXOWVHWWLQJVDQGZLOOEHUXQQLQJLWV$872%$8'URXWLQH,WPXVWWKHQEHLQLWLDOL]HGWR
UHWXUQWRQRUPDORSHUDWLRQ
8SGDWLQJ8SORDGLQJQHZ)LUPZDUH
/RDGLQJDQHZILUPZDUHSURJUDPLQWKH.$0 ;/ IODVK520
FDQEHORDGHGDWDEDXGUDWHRIRUEDXG7RORDGQHZILUPZDUHDWEDXG
SODFHMXPSHULQ-SRVLWLRQRIWKH.$0;/ ERDUG7RORDGQHZILUPZDUHDWEDXG
SODFHMXPSHUVLQ-$1'-SRVLWLRQV
FDQEHVHQWIURPDOPRVWDQ\WHUPLQDOSURJUDPWKDWLVFDSDEOHRIWKHRUEDXG
UDWH
3RZHURIIWKH.$0 ;/
5HPRYHWKH.$0 ;/ WRSFRYHU
/RFDWHMXPSHU-QH[WWRWKH+DUGUHVHWMXPSHUDQGFRQQHFWLWVSLQVWRJHWKHU
6HWWLQJVLQWKHWHUPLQDOSURJUDPVKRXOGEH
RUEDXGUDWHGHSHQGLQJXSRQWKH-DQG-MXPSHUSRVLWLRQV)RU
EDXGSODFHMXPSHULQ-SRVLWLRQ)RUEDXGSODFHMXPSHUVLQ-DQG-SRVLWLRQV
123$5,7<'$7$%,766723%,7
62)7:$5(RU;21;2)))/2:&21752/
&+$5$&7(5DQG/,1(3$&,1*VHWWR=(52RU0,1,0$/'(/$<
3RZHU21WKH.$0 ;/$PHVVDJHZLOOEHGLVSOD\HGZLWKWKHXQLWVHULDOQXPEHUDQG$5(<28
5($'<72(5$6()/$6+"<1
3UHVVLQJWKH1NH\ZLOOGRQRWKLQJ
3UHVVLQJWKH<NH\ZLOOUHWXUQWKHPHVVDJH(5$6,1*)/$6+$IWHUVHFRQGVWKHPHVVDJH
67$57/2$',1*),/(ZLOOEHGLVSOD\HG
$WWKLVWLPHVHOHFWWKH6(1'$6&,,),/(RU6(1'7(;7),/(IXQFWLRQIURPWKHWHUPLQDOSURJUDP
,QGLFDWHWKHORFDWLRQRIWKH.$0 ;/ ILUPZDUHILOHLWFDQEHORDGHGIURPDGLVNRUFRSLHGWRWKHKDUG
GULYHDQGORDGHGIURPWKHUHDQGVHQGWKHILOH$VWKH.$0 ;/ UHFHLYHVHDFKOLQHRIGDWDLQWKHILOHLW
ZLOOUHWXUQDQFKDUDFWHU<RXVKRXOGVHH
VPDUFKLQJDFURVVDQGGRZQWKHVFUHHQDWDIDLUO\UDSLG
SDFH
,I\RXVHHQR
VUHFKHFNWKHWHUPLQDOSURJUDPVVHWWLQJVWREHVXUHWKDWLWLVVHWIRU62)7:$5(
IORZFRQWURO;21;2))DQG127+$5':$5(IORZFRQWURO576&76
,IWKH
VGRDSSHDUEXWRQO\YHU\VORZO\UHFKHFNWKHWHUPLQDOSURJUDPVHWWLQJVWREHVXUHWKDW
FKDUDFWHUDQGRUOLQHGHOD\VRUSDFLQJDUHVHWWR]HUR
$+DUG5HVHWDVGHVFULEHGLQWKHSUHYLRXVVHFWLRQPD\EHQHFHVVDU\DIWHUDQHZILUPZDUHYHUVLRQKDV
EHHQORDGHG
&DOLEUDWLRQ
7KH&$/,%5$7FRPPDQGLVXVHGWRDVVLVWLQDGMXVWLQJWKHGDWDWUDQVPLWDXGLRGULYHOHYHOWR
SURSHUO\PRGXODWHDWUDQVPLWWHU
7KHSURFHGXUHVOLVWHGEHORZDUHDJXLGHOLQHIRUXVLQJWKHFDOLEUDWLRQFRPPDQGWRDGMXVWSRUWVDQG
IRURSWLPXPSHUIRUPDQFH
'ULYHOHYHOIRUSRUWVDQGDUHVHWE\GLJLWDOSRWVSURYLGLQJDQRXWSXWOHYHOUDQJHRIP9WR9SS
'HIDXOWGULYHOHYHOIRUERWKSRUWVLVDERXWP9FRUUHVSRQGLQJWRDQ;0,7/9/FRPPDQG
VHWWLQJFRXQWRI
3RUW
7RVHWGULYHOHYHOIRUSRUWWKHFXUUHQW,2VWUHDPPXVWEHVHWWRSRUW
8SRQHQWHULQJWKH&$/LEUDWHFRPPDQGWKHIROORZLQJRSWLRQVZLOOEHGLVSOD\HGWRWKHWHUPLQDO
+)&$/,%5$7(02'(%$8'
5UHFHLYH
0VHQGPDUN
6VHQGVSDFH
7VHQGVTXDUHZDYH
%UDQGRP
RUDGMXVW;0,7/9/ZKLOHWUDQVPLWWLQJ
;H[LW
;0,7/9/
3UHVVLQJ5ZLOOUHWXUQWRUHFHLYH
3UHVVLQJ0ZLOOWUDQVPLWDFRQVWDQW0$5.VLJQDOXQWLODNH\LVSUHVVHG
3UHVVLQJ6ZLOOWUDQVPLWDFRQVWDQW63$&(XQWLODNH\LVSUHVVHG
3UHVVLQJ7ZLOOWUDQVPLWDVTXDUHZDYHVSDFHPDUNXQWLODNH\LVSUHVVHG
3UHVVLQJ%ZLOOVHQGDUDQGRPELWSDWWHUQZLWKERWKWRQHV
3UHVVLQJWKHNH\ZKLOHWUDQVPLWWLQJLQFUHDVHVWUDQVPLWRXWSXWOHYHO
3UHVVLQJWKH±NH\ZKLOHWUDQVPLWWLQJGHFUHDVHVWUDQVPLWRXWSXWOHYHO
3UHVVLQJ;ZLOOH[LWWKHFDOLEUDWHPRGH
7UDQVPLW'ULYHOHYHO
$IWHUHQWHULQJWKHFDOLEUDWHPRGH&$/\RXVKRXOGXVHWKH7RSWLRQWRLQLWLDWHWKHWUDQVPLVVLRQRID
VTXDUHZDYHDQGWKHQDGMXVWWKH$)6.GULYHOHYHOE\SUHVVLQJWKH
RU
NH\DQGKROGLQJLWGRZQ
XQWLO\RXDFKLHYHWKHGULYHOHYHO\RXQHHG$GMXVWWKHOHYHOWRDFKLHYHDERXWWRN+]GHYLDWLRQ
IURPWKHWUDQVPLWWHU
:KHQWKHGHYLDWLRQKDVEHHQVHWH[LW&$/PRGHDQGFKHFNWKHSDUDPHWHUYDOXHIRU;07/9/0DNH
DQRWHRIWKDWYDOXHIRUIXWXUHUHIHUHQFH
3RUW
7RVHWGULYHOHYHOIRUSRUWWKHFXUUHQW,2VWUHDPPXVWEHVHWWRSRUW
8SRQHQWHULQJWKH&$/LEUDWHFRPPDQGWKHIROORZLQJRSWLRQVDUHGLVSOD\HG
9+)&$/,%5$7(02'(%$8'
5UHFHLYH
0VHQGPDUN
6VHQGVSDFH
7VHQGVTXDUHZDYH
%UDQGRP
RUDGMXVW;0,7/9/ZKLOHWUDQVPLWWLQJ
;H[LW
;0,7/9/
3UHVVLQJ5ZLOOUHWXUQWRUHFHLYH
3UHVVLQJ0ZLOOWUDQVPLWDFRQVWDQW0$5.VLJQDOXQWLODNH\LVSUHVVHG
3UHVVLQJ6ZLOOWUDQVPLWDFRQVWDQW63$&(XQWLODNH\LVSUHVVHG
3UHVVLQJ7ZLOOWUDQVPLWDVTXDUHZDYHVSDFHPDUNXQWLODNH\LVSUHVVHG
3UHVVLQJ%ZLOOVHQGDUDQGRPELWSDWWHUQZLWKERWKWRQHV
3UHVVLQJWKHNH\ZKLOHWUDQVPLWWLQJLQFUHDVHVWUDQVPLWRXWSXWOHYHO
3UHVVLQJWKH±NH\ZKLOHWUDQVPLWWLQJGHFUHDVHVWUDQVPLWRXWSXWOHYHO
3UHVVLQJ;ZLOOH[LWWKHFDOLEUDWHPRGH
7UDQVPLW'ULYHOHYHO
$IWHUHQWHULQJWKHFDOLEUDWHPRGHIRUWKHKLJKVSHHGSRUW\RXVKRXOGXVHWKH7RSWLRQWRLQLWLDWHD
FRQWLQXRXVVLJQDODQGWKHQXVHWKH
RU
NH\WRGHFUHDVHRULQFUHDVHGULYHOHYHO
:KHQFRQQHFWHGWRDQ)0WUDQVPLWWHUPDNHWKHDGMXVWPHQWZLWKWKH±DQGNH\VVRWKDWWKH
WUDQVPLWWHUSURGXFHVDERXWN+]RIGHYLDWLRQ
:KHQFRQQHFWHGWRDQ+)66%WUDQVPLWWHUPDNHWKHDGMXVWPHQWVRDVQRWWRH[FHHGWKHQRUPDO$/&
UDQJHVDPHDVZKHQDGMXVWLQJGULYHXVLQJWKHPLFURSKRQH7KLVLVYHU\LPSRUWDQWIRU+)PRGHVVXFK
DV36.
:KHQWKHWUDQVPLWOHYHOKDVEHHQVHWH[LW&$/PRGHZLWKWKH;FRPPDQGDQGFKHFNWKHSDUDPHWHU
YDOXHIRU;07/9/0DNHDQRWHRILWVYDOXHIRUIXWXUHUHIHUHQFH
3773XVKWR7DON:DWFKGRJ7LPHU
7KH.$0;/ KDVSXVKWRWDONZDWFKGRJWLPHUVIRUERWKSRUWV7KHVHWLPHUVDUHERWKHQDEOHGDWWKH
IDFWRU\ZLWKMXPSHUV-SRUWDQG-SRUW
,IWKH377RIHLWKHUUDGLRSRUWLV21FRQWLQXRXVO\IRUPRUHWKDQDERXWPLQXWHVWKHZDWFKGRJWLPHU
ZLOODFWLYDWHDQGUHOHDVHWKH377OLQHWRWKHWUDQVPLWWHU
7RGLVDEOHWKH:DWFKGRJWLPHUFRQQHFWWKHSLQVRI-RU-WRJHWKHU
-XPSHUV
/RFDWLRQVDQGGHVFULSWLRQVRI.$0;/ -XPSHUVDUHJLYHQLQWKLVVHFWLRQ
-XPSHU
1DPH
3RUW)6.77/RXWSXW
3RUWUHFHLYHLQSXWLPSHGDQFH
3RUW)6.77/RXWSXW
3RUWUHFHLYHLQSXWLPSHGDQFH
3RUW377:DWFKGRJWLPHU
3RUW377:DWFKGRJWLPHU
3RUWWUDQVPLWRXWSXW±'&FRXSOLQJ
3RUWWUDQVPLWRXWSXWLPSHGDQFH
3RUWWUDQVPLWRXWSXW±'&FRXSOLQJ
+$5'5(6(7
3RUWWUDQVPLWRXWSXWLPSHGDQFH
)/$6+),50:$5(/2$'
-XPSHU'HVFULSWLRQV
-6HWV3RUW7UDQVPLWGDWDRXWSXWWRHLWKHU)6.)(7WUDQVLVWRUVZLWFK212))FHQWHUSLQWRSLQ
RU77/GULYHWRYFHQWHUSLQWRSLQ
'HIDXOW)6.
-6HWV3RUW5HFHLYHLQSXWLPSHGDQFH2SHQ .RKPVFORVHG RKPV
'HIDXOWRSHQ
-6HWV3RUW7UDQVPLWGDWDRXWSXWWRHLWKHU)6.)(7WUDQVLVWRUVZLWFK212))FHQWHUSLQWRSLQ
RU77/GULYHWRYFHQWHUSLQWRSLQ
'HIDXOWRSHQ
-6HWV3RUWUHFHLYHLQSXWLPSHGDQFH2SHQ .RKPVFORVHG RKPV
'HIDXOWRSHQ
-3RUW377:DWFKGRJ:KHQRSHQWKHZDWFKGRJLVHQDEOHG377ZLOOGLVFRQWLQXHDIWHUDERXW
PLQXWHVRIFRQWLQXRXVWUDQVPLW:KHQFORVHGWKHZDWFKGRJLVGLVDEOHGDQG377ZLOOUHPDLQDFWLYHDV
ORQJDVFRPPDQGHG
'HIDXOWRSHQHQDEOHG
-3RUW377:DWFKGRJ:KHQRSHQWKHZDWFKGRJLVHQDEOHG377ZLOOGLVFRQWLQXHDIWHUDERXW
PLQXWHVRIFRQWLQXRXVWUDQVPLW:KHQFORVHGWKHZDWFKGRJLVGLVDEOHGDQG377ZLOOUHPDLQDFWLYHDV
ORQJDVFRPPDQGHG
'HIDXOWRSHQHQDEOHG
-6HWVWKHW\SHRIFRXSOLQJIRUWUDQVPLWDXGLR$)6.IURP3RUW:KHQRSHQ$&FRXSOLQJLVXVHG
ZKHQFORVHG'&FRXSOLQJLVXVHG
'HIDXOWRSHQ$&FRXSOLQJ
-:KHQFORVHGDGGVDORDGLPSHGDQFHWRWKHWUDQVPLWDXGLR$)6.RXWSXWRQ3RUW
-6HWVWKHW\SHRIFRXSOLQJIRUWUDQVPLWDXGLR$)6.IURP3RUW:KHQRSHQ$&FRXSOLQJLVXVHG
ZKHQFORVHG'&FRXSOLQJLVXVHG
'HIDXOWRSHQ$&FRXSOLQJ
-:KHQFORVHGDQG-RSHQDQGWKHXQLWSRZHUHG21D6(/)7(67LVSHUIRUPHGXVHU
PHPRU\LVWHVWHGDQGFOHDUHGDQGUHVXOWPHVVDJHVGLVSOD\HGDWEDXG
-:KHQFORVHGDGGVDORDGLPSHGDQFHWRWKHWUDQVPLWDXGLR$)6.RXWSXWRQ3RUW
-:KHQFORVHGDQGWKHXQLWSRZHUHG21WKHFXUUHQW)/$6+520DUHDLVFOHDUHGDQGFDQEHUH
ORDGHG7KLVLVGRQHZKHQXSGDWLQJILUPZDUHWRDQHZHUYHUVLRQ
$SSHQGL[&
5HSODFLQJWKH/LWKLXP%DWWHU\
7RUHSODFHWKHLQWHUQDO/LWKLXPEDWWHU\UHPRYHWKHWRSFRYHUIURPWKH.$0;/ DQGFDUHIXOO\VOLSWKH
EDWWHU\RXWRIWKHEDWWHU\KROGHU<RXPD\QHHGWRXVHDQLQVXODWHGWRROWRDVVLVWLQUHPRYDORIWKH
EDWWHU\:KHQLQVWDOOLQJDUHSODFHPHQWEDWWHU\&5RUHTXLYDOHQWEHVXUHWRLQVHUWWKHEDWWHU\
ZLWKLWVSRVLWLYHWHUPLQDODJDLQVWWKHWRSFOLSRIWKHEDWWHU\KROGHU
127( :KHQUHPRYLQJWKHOLWKLXPEDWWHU\IURPWKH.$0;/DOOVWRUHGSDUDPHWHUFKDQJHVZLOOEH
ORVWDQGWKHXQLWZLOOUHYHUWWRWKHIDFWRU\GHIDXOWSDUDPHWHUV
$SSHQGL[',Q&DVHRI'LIILFXOW\
$GGLWLRQDOSRVVLEOHGLIILFXOWLHVDUHFRYHUHGLQWKH7URXEOH6KRRWLQJVHFWLRQRIWKH3DFWHUP
FKDSWHU
7KH.DQWURQLFV.$0;/ LVPDQXIDFWXUHGWRYHU\VWULQJHQWTXDOLW\VWDQGDUGV,I\RXKDYHIROORZHGWKH
LQVWDOODWLRQSURFHGXUHVRXWOLQHGLQWKLVPDQXDOLWLVKLJKO\XQOLNHO\WKDW\RXZLOOHQFRXQWHUDIDLOXUH,I
\RXGRKDYHGLIILFXOW\XVHWKHSURFHGXUHVGHVFULEHGLQWKLVVHFWLRQWRDVVLVWLQLVRODWLQJDQGFRUUHFWLQJ
WKHSUREOHP
.$0;/ 'RHV1RW6LJQ2QWR&RPSXWHU
&DUHIXOO\UHFKHFNFDEOLQJEHWZHHQWKHFRPSXWHUVHULDOSRUWDQGWKH.$0;/
&KHFNFDUHIXOO\WRLQVXUHWKDWWKH7UDQVPLW'DWD5HFHLYH'DWDDQG*URXQGOHDGVDUHFRQQHFWHG
WRWKHSURSHUSLQV
,IXVLQJDFDEOHZLWKDZLUHFRQQHFWLRQWRWKHFRPSXWHUVHULDOSRUWWU\FKDQJLQJWRDZLUH
FRQQHFWLRQ3DFWHUPUHTXLUHVDZLUHFRQQHFWLRQ
&KHFNWKHWHUPLQDOSURJUDPWREHFHUWDLQLWLVFRQILJXUHGZLWKWKHFRUUHFWFRPPXQLFDWLRQV
SDUDPHWHUVVHULDOSRUWEDXGUDWHSDULW\
7U\D+DUG5HVHWXVLQJWKH+DUG5HVHWMXPSHU6HWWKHWHUPLQDOSURJUDPLQWHUIDFHEDXGUDWHWR
ZKHQSHUIRUPLQJDKDUGUHVHW
8QDEOHWR&RQQHFWWRDQRWKHUVWDWLRQ
,VVXHDFRQQHFWUHTXHVWDQGREVHUYHWKH71&
V;0,7/(',IWKH;0,7/('LOOXPLQDWHVFKHFN
WRLQVXUHWKDWWKHUDGLRLVSURSHUO\FRQQHFWHGWRWKH71&
VUDGLRSRUW
2EVHUYHWKHUDGLRWRGHWHUPLQHLILWLVEHLQJVZLWFKHGWRWKH7UDQVPLWFRQGLWLRQ,IQRWUHFKHFN
ZLULQJEHWZHHQWKH.$0;/ UDGLRSRUW377SLQDQGJURXQGRQWKHPLFURSKRQHMDFN
,IUHFHLYHOHGRQWKH.$0;/ GRHVQRWOLJKWZKHQUHFHLYLQJSDFNHWVIURPRWKHUVWDWLRQVUHFKHFN
WKHDXGLRFRQQHFWLRQEHWZHHQWKHUDGLRDQGWKH.$0;/
,ISRVVLEOHPRQLWRUWKHVLJQDOIURPWKHWUDQVPLWWHUZLWKDQRWKHUUDGLR,IWKHWUDQVPLWWHULVNH\LQJ
WR7UDQVPLWEXWZHDNRUQRDXGLRLVPRQLWRUHGLQFUHDVH$)6.RXWSXWDVQHFHVVDU\E\
LQFUHDVLQJWKH;0,7/9/SDUDPHWHUYDOXHIRUWKLVSRUW6HHWKH;0,7/9/SDUDPHWHULQWKH
FRPPDQGUHIHUHQFHIRUGHWDLOV
&KHFNWREHVXUHWKHSURSHUUDGLRSRUWRQWKH.$0;/ LVVHOHFWHGE\HQWHULQJWKH67$786
FRPPDQG,WZLOOUHSRUWWKHFXUUHQW,2SRUW,IQHHGHGFKDQJHSRUWVE\XVLQJWKHVWUHDPVZLWFK
FKDUDFWHU
&DQQRW7UDQVPLW
,IDFRQQHFWLRQKDVEHHQPDGHWRWKH;&'SLQRQWKHUDGLRSRUWDQGKDVEHHQJURXQGHGWUDQVPLW
LVQRWSRVVLEOHRQWKDWUDGLRSRUW7U\GLVFRQQHFWLQJDQ\ZLUHIURPSLQRQWKHGE
&DQQRW5HWXUQWR&RPPDQG0RGH
7KHVLQJOHPRVWFRPPRQFDXVHRIWKLVLVWKDWWKH6723FKDUDFWHUDQGXVXDOO\;2))PD\KDYH
EHHQLQDGYHUWHQWO\VHWWRWKHVDPHDVWKH&200$1'FKDUDFWHU7KLVLVXVXDOO\FDXVHGE\WKH
XVHVHWWLQJWKHVWUHDPVZLWFKWRWKHGROODUVLJQ,IXVLQJWKHDVVWUHDPVZLWFKKH[YDOXHV
FDQQRWEHHQWHUHGZLWKRXW3$66LQJWKHGROODUVLJQ6\PSWRPVIRUWKLVXVXDOO\DUHWKDWWKH.$0
;/ ZLOOZRUNILQHLQ&RPPDQG0RGHDQGFDQXVXDOO\VHQGWRRWKHUVWDWLRQVRQWKHDLUEXWFDQ
W
JHWEDFNWR&RPPDQG0RGH:LWKPRVW3&WHUPLQDOSURJUDPVSUHVVLQJ&WUO&!ZLOOGLVSOD\
WKHKHDUWFKDUDFWHUEXWVWLOOZRQ
WUHWXUQWRWKHFPGSURPSW
7KH.$0;/ PD\EHLQWUDQVSDUHQWLQWHUIDFHPRGHDQGW\SLQJMXVWUHVXOWVLQWUDQVPLWWLQJ6HH
WKH*HWWLQJRXWRI7UDQVSDUHQW0RGHVHFWLRQLQWKH,QWHUIDFH0RGHVFKDSWHU
7KH71&LVLQDGLIIHUHQWLQWHUIDFHPRGHDQGQHHGVDGLIIHUHQWFRPPXQLFDWLRQSURJUDPRUWKH
LQWHUIDFHPRGHQHHGVWREHH[LWHGEDFNWRWHUPLQDOPRGH6HHWKH*HWWLQJRXWRI+RVW0RGH
RU³*HWWLQJRXWRI.,66PRGH´VHFWLRQVEHORZ
7KH71&KDVSDUDPHWHUVVHWLQVXFKDZD\WKDWUHWXUQWRFRPPDQGPRGHLVQRWSRVVLEOH,QWKLV
FDVHD+$5'5(6(7ZLOOEHQHFHVVDU\
*HWWLQJ2XWRI+RVW0RGH
,I\RXZDQWWRXVHDVWDQGDUGWHUPLQDOSURJUDPDIWHU\RXKDYHXVHGD+RVWPRGHSURJUDPEHDZDUH
WKDW\RXU71&PD\VWLOOEHLQKRVWPRGHZKHQ\RXILUVWWXUQLWRQ,ILWLV\RXZLOOQRWVHHWKHQRUPDO
VLJQRQPHVVDJHEXWLQVWHDGZLOOVHHWKHPHVVDJH6‘‘VHQWE\WKH71&WRLQGLFDWHWKDWLWLVLQ
+2670RGH,I\RXVHHWKLVPHVVDJH\RXPXVWILUVWH[LWWKH+RVW0RGHEHIRUH\RXFDQVWDUWWDONLQJ
WR\RXUXQLWZLWKDSURJUDPVXFKDV3DFWHUP<RXPXVWVHQGWKUHHFKDUDFWHUVWRWKH71&LQRUGHUWR
H[LWWKH+RVW0RGH
)LUVWVHQGD)(1'FKDUDFWHU$6&,,FRGHWKHQWKHOHWWHUTXSSHURUORZHUFDVHLVRNDQG
ILQDOO\DQRWKHU)(1'FKDUDFWHU
7KH.$0;/ ZLOOWKHQOHDYH+RVW0RGHDQGVHQGWKHXVXDO.DQWURQLFVVLJQRQPHVVDJH
7RVHQGWKHFKDUDFWHUVHTXHQFHIURP\RXUNH\ERDUGGRWKHIROORZLQJ
3UHVVDQG+2/'WKH$/7NH\7\SHWKHQXPEHUV25LIXVLQJ+\SHUWHUPIURPWKH
QXPHULF.(<3$'GRQRWXVHWKHQXPEHUVDERYHWKHOHWWHUVRQWKHNH\ERDUG7KHQUHOHDVHWKH$/7
NH\
7\SH4
3UHVVDQG+2/'WKH$/7NH\7\SHWKHQXPEHUVIURPWKHQXPHULF.(<3$'GRQRWXVHWKH
QXPEHUVDERYHWKHOHWWHUVRQWKHNH\ERDUG7KHQUHOHDVHWKH$/7NH\
:KHQ\RXUWHUPLQDOSURJUDPVHQGVWKHVHFKDUDFWHUVWKH71&ZLOOVZLWFK\RXRXWRI+RVW0RGHDQG
LQWR&RPPDQG0RGH
$SSHQGL[($GGLWLRQDO,QIRUPDWLRQ
0HVVDJHVIURPWKH.$0;/
7KHIROORZLQJDUHEULHIH[SODQDWLRQVRIWKHPRVWLPSRUWDQWPHVVDJHVWKDWPD\EHVHQWE\\RXU71&
1RWH6LQFHWKHVHPHVVDJHVDUHDOVRVHQWE\RWKHU.DQWURQLFV
71&VWKH\UHIHUWR71&QRWWR
.$0;/
FDOOVLJQEXV\
7KHSDFNHWVWDWLRQ\RXZHUHDWWHPSWLQJWRFRQQHFWWRFDOOVLJQLVXQDEOHWRDFFHSWFRQQHFWVDQG
UHVSRQGHGZLWKDEXV\VLJQDO
+)&$/,%5$7(02'(+%$8'
0VHQGPDUN
5UHFHLYH
6VHQGVSDFH
7VHQGVTXDUHZDYH
%UDQGRP
RUDGMXVW;0,7/9/ZKLOHWUDQVPLWWLQJ
;H[LW
;0,7/9/
7KLVPHVVDJHDSSHDUVRQ\RXUVFUHHQZKHQHQWHULQJWKH&DOLEUDWH0RGHIRUSRUW3UHVV0WR
JHQHUDWHD0$5.WRQH5WRUHFHLYHD.DQWURQLFV&DOLEUDWHVLJQDOIURPDQRWKHU71&6WRJHQHUDWHD
63$&(WRQH7WRWUDQVPLWD.DQWURQLFV&DOLEUDWHVLJQDORUWRDGMXVW;0,7/9/ZKLOH
WUDQVPLWWLQJRU;WRUHWXUQWRWKH&RPPDQG0RGH
9+)&$/,%5$7(02'(+%$8'
0VHQGPDUN
5UHFHLYH
6VHQGVSDFH
7VHQGVTXDUHZDYH
%UDQGRP
RUDGMXVW;0,7/9/ZKLOHWUDQVPLWWLQJ
;H[LW
;0,7/9/
7KLVPHVVDJHDSSHDUVRQ\RXUVFUHHQZKHQ\RXHQWHUWKH&DOLEUDWH0RGHIRUSRUW7KHFDOLEUDWH
FRPPDQGVDUHWKHVDPHDVLQSRUW
$OUHDG\FRQQHFWHGRQVWUHDPQ
<RXDUHDWWHPSWLQJWRFRQQHFWWRVRPHRQH\RXDUHDOUHDG\FRQQHFWHGWRRQDQRWKHUVWUHDP7KH
67$786FRPPDQGZLOOVKRZ\RXZKR\RXDUHFRQQHFWHGWRDQGRQZKDWVWUHDPLHVWUHDPQ
%%6%86<
<RXKDYHDWWHPSWHGWRFRQQHFWWR\RXURZQ3%%6EXWWKH%%6LVLQXVHE\DQRWKHUVWDWLRQ
&DQ
W',6&211(&7
<RXDUHQRWFRQQHFWHGRQWKLVVWUHDPVRWKHUHIRUHFDQQRWGLVFRQQHFW7KLVPHVVDJHZLOOEHIROORZHG
E\WKHVWUHDPDQGD/LQNVWDWHLVPHVVDJHGHVFULEHGODWHULQWKLVVHFWLRQ
&DQ
W5(&211(&7
<RXKDYHDWWHPSWHGWRUHFRQQHFWWRDVWDWLRQE\LVVXLQJD&211(&7FRPPDQGEXWWKHFDOOVLJQ\RX
HQWHUHGLVQRWWKHVDPHDVWKHVWDWLRQ\RXDUHDOUHDG\FRQQHFWHGWR<RXPD\RQO\UHFRQQHFWYLDD
GLIIHUHQWSDWKWRWKHVWDWLRQ\RXDUHFRQQHFWHGWRRQWKLVVWUHDP
&+(&.680(5525
7KLVPHVVDJHLQGLFDWHVWKDWWKH.DQWURQLFVILUPZDUHLQ\RXU71&PD\EHGDPDJHG<RXPD\VHHWKLV
PHVVDJHZKHQSHUIRUPLQJDKDUGUHVHWRUDQ\WLPHDVRIWUHVHWLVSHUIRUPHGLQFOXGLQJLQLWLDOSRZHU
XSDQGDQ(3520HUURULVGHWHFWHG
&+(&.6802.
:KHQSHUIRUPLQJDKDUGUHVHWWKLVPHVVDJHLQGLFDWHVWKDWWKH.DQWURQLFVILUPZDUH(SURPKDVSDVVHG
WKHLQWHUQDOFKHFNVXPWHVW
FPG
7KLVLVWKH&RPPDQG0RGH
VSURPSWIRULQSXW$Q\FKDUDFWHUVHQWHUHGDIWHUWKH71&SULQWVFPG
ZLOOEHXVHGDVFRPPDQGLQSXWDQGQRWSDFNHWGDWD
&RPPDQGQRWDYDLODEOHLQ1(:86(5PRGH
7KLVPHVVDJHLQGLFDWHVWKDW\RXKDYHDWWHPSWHGWRFKDQJHRQHRIWKHFRPPDQGVLQWKH71&EXWWKDW
FRPPDQGLVQRWFXUUHQWO\DYDLODEOHWR\RX7KLVRFFXUVZKHQWKH,17)$&(FRPPDQGLVVHWWR
1(:86(57RHQDEOHDOOFRPPDQGVVHW,17)$&(7(50,1$/
FRQQHFWUHTXHVW
$UHPRWHSDFNHWVWDWLRQKDVDWWHPSWHGWRFRQQHFWWR\RXEXWWKHUHLVQRWDYDOLGVWUHDPDYDLODEOHIRU
WKHFRQQHFWLRQ7KHUHPRWHVWDWLRQZLOOEHVHQWDEXV\PHVVDJHSDFNHW6HHWKH86(56DQG
0$;86(56FRPPDQGVIRUVHWWLQJPRUHVWUHDPVDQGDOORZLQJPRUHFRQQHFWVDWRQHWLPHLIGHVLUHG
$OVREH
VXUH&212.LV21
&211(&7('WRFDOO>9,$GLJLGLJL@
$SDFNHWFRQQHFWLRQKDVWDNHQSODFH7KLVFDQKDSSHQE\\RXLVVXLQJDFRQQHFWUHTXHVWRUDFRQQHFW
UHTXHVWFRPLQJLQIURPDUHPRWHVWDWLRQFDOOZLOOEHWKHFDOOVLJQHQWHUHGLQWKHUHPRWHVWDWLRQV
0<&$//DQGLIDSDWKZDVXVHGLWZLOOEHVKRZQ
',6&211(&7('
7KHSDFNHWFRQQHFWLRQQRORQJHUH[LVWV
(+"
7KLVLVWKH71&
VJHQHUDOL]HG,GRQ
WXQGHUVWDQGPHVVDJH$GROODUVLJQLVXVHGWRSRLQWWRWKH
RIIHQGLQJFKDUDFWHU,WZLOODOVRDSSHDULIDUHTXLUHGLQSXWLWHPLVPLVVLQJHJ
&.9%9
(+"
,QWKLVH[DPSOHWKHUHTXLUHGFDOOVLJQDIWHUWKH9,$RSWLRQLVPLVVLQJ0RVWFRPPDQGVWKDWUHFHLYHDQ
(+"HUURUDUHLJQRUHG,QDIHZFDVHVSDUWRIWKHFRPPDQGPD\EHDFFHSWHGDQGDFWHGXSRQDV
GHVFULEHGXQGHUWKHPHVVDJH,QSXWLJQRUHG
(17(5<285&$//6,*1 !
7\SHLQ\RXUFDOOVLJQ7KH71&QHHGVWRNQRZZKR\RXDUHWRSURSHUO\LPSOHPHQWLWVSURWRFRO<RXU
FDOOVLJQZLOOEHSODFHGLQWKH0<&$//SDUDPHWHUDQGXVHGWRJHQHUDWHWKH0<*$7(0<12'(
DQG0<3%%6FDOOVLJQVDQGWKH&:,'7(;7
[[[[)5((%<7(6
7KLVPHVVDJHLQGLFDWHGKRZPDQ\DGGLWLRQDOFKDUDFWHUVPD\EHHQWHUHGLQWRWKH71&SDFNHWEXIIHU
EHIRUHWKHEXIIHULVIXOO
)505UHFHLYHG
$IUDPHUHMHFWSDFNHWKDVEHHQUHFHLYHGIRUDQXQNQRZQUHDVRQ7KHLQIRUPDWLRQILHOGRIWKLVSDFNHW
ZLOOGLVSOD\LQKH[DGHFLPDOYDOXH7KLVGLVSOD\PD\EHXVHIXOLQGHWHUPLQLQJZK\WKHUHFHLYLQJVWDWLRQ
UHMHFWHG\RXUSDFNHW
)505VHQW
)UDPHUHMHFWSDFNHWKDVEHHQVHQWGXHWRDGHWHFWHGHUURULQSURWRFRO7KUHHE\WHVKH[DGHFLPDO
FKDUDFWHUVDUHGLVSOD\HGWRDVVLVWLQGHWHUPLQLQJWKHUHDVRQIRUWKHUHMHFW
,QSXWLJQRUHG
6LQFHWKH71&FRPPDQGLQWHUSUHWHUZDVNHSWVPDOODQGVLPSOHLWZLOOVRPHWLPHVFKDQJHSDUDPHWHUV
EHIRUHLWFRPSOHWHVSDUVLQJVRPHRIWKHPRUHLQYROYHGFRPPDQGV,QVRPHFDVHVRSWLRQVDWWKH
EHJLQQLQJRIWKHFRPPDQGZLOOKDYHEHHQDFWHGRQEHIRUHDV\QWD[HUURUQHDUWKHHQGRIWKHOLQHLV
UHDFKHG:KHQWKLVRFFXUV,QSXWLJQRUHGLVXVHGWRVKRZZKDWSDUWRIWKHOLQHZDVLJQRUHG7KH
GROODUVLJQSRLQWVWRWKHERXQGDU\FKDUDFWHUVWRWKHOHIWZHUHXVHGWKHFKDUDFWHUSRLQWHGWRDQGWKRVH
WRWKHULJKWZHUHQRWLHWKHOLQHZDVSDUVHGDVLID&5!ZDVHQWHUHGDWWKH
([DPSOH
%8'/,67467.%‘1<.1‘.1
,QSXWLJQRUHG
%HFDXVHWKHFRPPDLVPLVVLQJWKHFRPPDQGLVLQWHUSUHWHGDVLILWZHUH%8'/,67467.%‘1<.
WKH1‘.1LVLJQRUHG
,19$/,'675($0
7KHVWUHDP\RXKDYHWULHGWRFKDQJHWRLVQRWYDOLG3RUWQXPEHUVPXVWEHQXPEHUVRU6WUHDP
GHVLJQDWRUVPXVWEHOHWWHUV$=0$;86(56VHWVWKHXSSHUOLPLWRQYDOLGVWUHDPVDQGZKLFKSRUWV
DUHYDOLG
.$17521,&6.$0;/9(56,21
&&23<5,*+7%<.$17521,&6,1&$//5,*+765(6(59('
'83/,&$7,21352+,%,7(':,7+2873(50,66,212).$17521,&6
$PHVVDJHVXFKDVWKLVGLIIHUHQWIRUHDFKSURGXFWEXWZLWKWKLVIRUPDWDSSHDUVZKHQWKH71&LVILUVW
WXUQHGRQDQGDIWHUDQ\VRIWUHVHWLQFOXGLQJFKDQJLQJWKH18012'(63%%60$;86(56RU
0<5(027(FRPPDQGVRULVVXLQJWKH5(6(7FRPPDQG
/LQNVWDWHLV
7KLVPHVVDJHLVRXWSXWLQUHVSRQVHWRWKH&211(&7DQG',6&211(&7FRPPDQGVLIWKHVWDWHRI
WKHOLQNGRHVQRWSHUPLWWKHUHTXHVWHGDFWLRQ,WLVSUHIDFHGE\&DQ
W&211(&7RU&DQ
W
',6&211(&7DVDSSURSULDWHDQGZLOOEHIROORZHGE\WKHFXUUHQWOLQNVWDWH$&211(&7
FRPPDQGZLWKQRRSWLRQVZLOOGLVSOD\WKHOLQNVWDWHRIWKHFXUUHQWVWUHDP
&XUUHQWOLQNVWDWHVDUH
%RWKGHYLFHVEXV\
%RWK71&VLQYROYHGLQWKHFRQQHFWLRQDUHXQDEOHWRDFFHSWDQ\PRUHGDWD
&211(&7('WRFDOOVLJQYSDWK
<RXU71&LVFXUUHQWO\FRQQHFWHGWRWKHLQGLFDWHGVWDWLRQXVLQJWKHSDWKJLYHQ
&211(&7LQSURJUHVV
<RXU71&LVDWWHPSWLQJWRHVWDEOLVKDFRQQHFWLRQ
'HYLFHEXV\
<RXU71&LVXQDEOHWRDFFHSWDQ\PRUHGDWDIURPWKHUHPRWHVWDWLRQDWWKLVWLPH
',6&LQSURJUHVV
<RXU71&LVDWWHPSWLQJWRGLVFRQQHFWIURPDQRWKHUVWDWLRQ
',6&211(&7('
1RFRQQHFWLRQH[LVWVRQWKHFXUUHQWVWUHDP
)505LQSURJUHVV
<RXU71&KDVGHWHFWHGDQHUURULQWKHSURWRFRO7KLVLVQRUPDOO\FDXVHGE\WZR71&VXVLQJWKHVDPH
FDOOVLJQUHVXOWLQJLQERWKRIWKHPWU\LQJWRUHVSRQGWRWKHVDPHPHVVDJH
5HPRWHGHYLFHEXV\
7KHUHPRWH71&LVXQDEOHWRUHFHLYHDQ\PRUHGDWDIURPWKHUDGLRDWWKLVWLPH
:DLWLQJ$&.DQGGHYLFHEXV\
<RXU71&KDVVHQWDSDFNHWWRDQRWKHUVWDWLRQDQGLVZDLWLQJIRUWKHDFNQRZOHGJPHQWEXW\RXU71&
LVQRWDEOHWRDFFHSWDQ\GDWDIURPWKHUDGLRDWWKLVWLPH
:DLWLQJ$&.DQGUHPRWHEXV\
<RXU71&KDVVHQWDSDFNHWWRDQRWKHUVWDWLRQDQGLVZDLWLQJIRUWKHDFNQRZOHGJPHQWDQGWKHUHPRWH
71&LVQRWDEOHWRDFFHSWDQ\GDWDIURPWKHUDGLRDWWKLVWLPH
:DLWLQJ$&.DQGERWKGHYLFHVEXV\
<RXU71&KDVVHQWDSDFNHWWRDQRWKHUVWDWLRQDQGLVZDLWLQJIRUWKHDFNQRZOHGJPHQWEXWQHLWKHU
\RXU71&QRUWKHRWKHUVWDWLRQ
V71&LVDEOHWRDFFHSWDQ\GDWDIURPWKHUDGLRDWWKLVWLPH
:DLWLQJDFNQRZOHGJPHQW
<RXKDYHVHQWDSDFNHWRIGDWDWRDQRWKHUVWDWLRQDQG\RXU71&LVZDLWLQJIRUWKHDFNQRZOHGJPHQW
0(66$*(6:28/'%(/267
7KLVPHVVDJHLQGLFDWHVWKDW\RXKDYHDWWHPSWHGWRVHWWKH3%%6VL]HWRRVPDOOWRKROGDOORIWKH
H[LVWLQJPHVVDJHVLQWKHPDLOER[7KHVL]HLVQRWFKDQJHGDQGWKHUHIRUHQRPHVVDJHVDUHORVW,I\RX
ZDQWWRPDNHWKHPDLOER[VPDOOHU\RXPXVWILUVWGHOHWHVRPHRIWKHPHVVDJHVRUVHWWKH3%%6WR
HUDVLQJDOORIWKHPHVVDJHVWKHQVHWWKHQHZ3%%6VL]H
12.12:112'(6
$Q1'+($5'OLVWKDVEHHQUHTXHVWHGDQGWKH71&KDVQRWKHDUGDQ\RWKHUQRGHVHJ.$1RGHV
127(128*+5$0
7KLVPHVVDJHLQGLFDWHVWKDW\RXKDYHDWWHPSWHGWRVHWWKH18012'(60$;86(56RU3%%6WRD
YDOXHZKLFKUHTXLUHVPRUH5$0PHPRU\WKDQLVFXUUHQWO\DYDLODEOH,WPD\DOVRRFFXULI\RXWU\WR
HQDEOHWKH0<5(027(DQGWKHUHLVQ
WHQRXJKPHPRU\OHIW
1RWZKLOHFRQQHFWHG
6RPHSDUDPHWHUVFDQQRWEHFKDQJHGLIWKH71&LVFRQQHFWHGWRDQRWKHUVWDWLRQ
7KLVPHVVDJHLVSULQWHGLIDQDWWHPSWLVPDGH
3%%60(66$*(%8))(51279$/,'
75<,1*725(&29(5
:KHQ\RXWXUQRQWKH71&DFKHFNLVPDGHRIWKHSRLQWHUVUHODWLQJWRWKH3%%6,WDSSHDUVWKDWRQHRU
PRUHRIWKHVHSRLQWHUVPD\QRWEHFRUUHFW$QDWWHPSWLVPDGHWRFRUUHFWWKHPEXWLWLVSRVVLEOHWKDW
VRPHRUDOORIWKHPHVVDJHVPD\EHORVW
35(66726(7%$8'5$7(
<RXQHHGWRSUHVVWKHDVWHULVNNH\RQ\RXUNH\ERDUGZLWKLQWZRVHFRQGVRIVHHLQJWKLVPHVVDJH
7KH71&VDXWREDXGURXWLQHZLOOWKHQGHWHFWZKDWEDXGUDWH\RXUFRPSXWHULVXVLQJVRWKHWZRGHYLFHV
FDQFRPPXQLFDWH
5$02.[[[.%<7(6
7KLVPHVVDJHDSSHDUVZKHQDKDUGUHVHWLVSHUIRUPHGDQGLQGLFDWHVWKDWWKH71&KDVWHVWHGWKH
LQVWDOOHG5$0DQGKDVIRXQGQRSUREOHPV,WDOVRUHSRUWVWKHDPRXQWRI5$0LQVWDOOHGLQ\RXU71&
5$0(5525[[[.%<7(6
,IWKLVPHVVDJHDSSHDUVZKHQ\RXSHUIRUPDKDUGUHVHWWKH71&KDVGHWHFWHGDSUREOHPZLWKWKH
LQVWDOOHG5$0DQGUHSRUWVKRZPXFKRIWKH5$0LWIRXQG
UHWU\FRXQWH[FHHGHG
',6&211(&7('
7KHQXPEHURIWULHVVHWE\WKH5(75<FRPPDQGKDVEHHQH[FHHGHG7KHUHIRUHWKHFRQQHFWLRQKDV
EHHQEURNHQ
6
7KLVPHVVDJHIURPWKH71&LQGLFDWHVWKDWLWLVLQWKH+267PRGHRIRSHUDWLRQDQGKDVMXVW
SHUIRUPHGDUHVHW7RH[LWWKH+RVWPRGH\RXPXVWVHQGWKUHHFKDUDFWHUVWRWKH71&IURP\RXU
NH\ERDUG6HHWKH+RVWPRGHVHFWLRQRIWKHPDQXDOIRUGHWDLOV7ZR)(1'FKDUDFWHUVSUHFHGHWKLV
PHVVDJHDQGRQH)(1'FKDUDFWHUIROORZVWKLVPHVVDJHEXWWKH\PD\QRWEHYLVLEOHGHSHQGLQJRQ
\RXUWHUPLQDOSURJUDP
9DOXHRXWRIUDQJH
,IWKHV\QWD[RIWKHFRPPDQGLVOHJDOEXWWKHYDOXHVSHFLILHGLVWRRODUJHRUWRRVPDOOIRUWKLV
FRPPDQGWKHYDOXHRXWRIUDQJHPHVVDJHLVUHWXUQHG$LVXVHGWRSRLQWWRWKHEDGYDOXH
ZDV
:KHQHYHURQHRIWKHSDUDPHWHUVLVFKDQJHGWKHSUHYLRXVYDOXHLVXVXDOO\GLVSOD\HG
([DPSOHFPG$;2))$;/9ZDV21

Similar documents

KPC>3 Plus - Kantronics

KPC>3 Plus - Kantronics 5DGLR)UHTXHQF\,QWHUIHUHQFH6WDWHPHQW 5),6XSSUHVVLRQ...

More information

Kantronics KPC-9612 - The Gator Amateur Radio Club

Kantronics KPC-9612 - The Gator Amateur Radio Club 3RUW&RQQHFWLQJWRD³+LJK6SHHG´5DGLR  $GMXVWLQJ+LJK6SH...

More information