'HVLJQ*XLGH
&RQWHQWV


*HQHUDO'LVFXVVLRQRI7HQVLOHVWUXFWXUHV

x


6KDSHVWKDWDUHQRW7HQVLOH6WUXFWXUHV

x


)RUPDO6WHSVWR'HVLJQD7HQVLOH6WUXFWXUH

x


)RUP)LQGLQJ

x


6SHFLILF)RUP)LQGLQJ,VVXHV

x


3DQHOLQJ

x


6SHFLILF3DQHOLQJ,VVXHV

x


&RPSHQVDWLRQ

x


6HDP$OORZDQFH

x


6WDPSLQJ

x


3DQHO2XWSXW

x


1HVWLQJ

x


$SSHQGLFHV

x

7\SLFDOORDGVRQDWHQVLOHVWUXFWXUH
)DEULFVWUHVVVSHFLILFDWLRQ
)DEULFVWUHVVHVWLPDWLRQDQGGHWHUPLQDWLRQRIUHTXLUHGSUHVWUHVV

0D[LPXPFXUYDWXUHDOORZHGNHHSLQJIDEULFVWUHVVHVLQERXQGV
7HQVLRQLQFDEOHV
([DPSOHRIFDOFXODWLQJFRPSHQVDWLRQ
8QLWV&RQYHUVLRQ
*ORVVDU\RI7HUPV


1RWHVRQ7HQVLOH6WUXFWXUH'HVLJQ

7KHVHQRWHVDUHLQWHQGHGWRLQWURGXFHDQHZGHVLJQHUWRWKHEDVLF
SULQFLSOHVLGHDVDQGSUDFWLFHVRIWHQVLOHVWUXFWXUHGHVLJQ7KH\DOVR
RIIHUVRPHIRRGIRUWKRXJKWWRHVWDEOLVKHGGHVLJQHUV7KHDXWKRU
ZRXOGZHOFRPHIHHGEDFNFRUUHFWLRQVDQGVXJJHVWLRQVWKURXJKWKH
XVXDOFKDQQHOV











/HJDO1RWLFH

7KHVHQRWHVDUHLVVXHGLQJRRGIDLWKDVJXLGDQFHQRWHVRQO\7KH
UHVSRQVLELOLW\IRUWKHVWUXFWXUHVGHVLJQZLOOUHPDLQZLWKWKHGHVLJQHU
DQGLQSDUWLFXODUWKHVHFWLRQVDGYLVLQJRQSHUPLVVLEOHORDGVDQG
VWUHVVHVDUHQRWWREHXVHGLQSODFHRIDQHQJLQHHULQJVWUHVVDQDO\VLV
,QQRZD\ZKDWVRHYHUZLOOWKHDXWKRURU0HOLDU'HVLJQRUDQ\RILWV
DVVRFLDWHVKDYHDQ\OLDELOLW\DWDOOIRUDQ\VWUXFWXUHEXLOWIROORZLQJ
WKHVHGHVLJQQRWHV














$QGUHZ$VNZLWK&RS\ULJKW

*HQHUDO'HVFULSWLRQRID7HQVLOH6WUXFWXUH

7HQVLOHVWUXFWXUHVDUHXQXVXDOLQWKDWWKH
VWUHVVHVLQWKHVWUXFWXUHGHWHUPLQHWKHVKDSHDQG
YLFHYHUVD7KLVLVDGLUHFWFRQVHTXHQFHRIXVLQJD
IDEULFZKLFKKDVQRDSSUHFLDEOHVWLIIQHVVRXWRIWKH
SODQHLWOLHVLQDQGQRDSSUHFLDEOHEHQGLQJVWLIIQHVV
$QWL&ODVWLF
6RWKHVKDSHRIWKHVWUXFWXUHKDVWRIROORZWKH
VWUHVV

%HIRUHDQ\H[WHUQDOORDGVDUHDSSOLHGWKHVWUHVVLQWKHVWUXFWXUHLVWKHGHVLJQHGLQSUH
VWUHVVFDXVHGE\GHOLEHUDWHO\PDNLQJWKHIDEULFSDQHOVDQGFDEOHVXQGHUVL]HVRWKDWWKH\
SUHVWUHVVZKHQVWUHWFKHGRXWWRWKHFRUUHFWVL]H

:KHQDQH[WHUQDOORDGLVDSSOLHGWRWKHVWUXFWXUHWKHPDLQUH
VSRQVHRIWKHVWUXFWXUHLVWRFKDQJHWKHLQWHUQDOVWUHVVHVWRDF
&RQLF
FRPPRGDWHWKHORDG$VHFRQGDU\UHVSRQVHLVWKHGHIRUPD
WLRQRIWKHVWUXFWXUDOVKDSH

7KLVPHDQVWKHUHDUHRQO\FHUWDLQVKDSHVWKDWDUHSRVVL
EOHWRPDNHDVWHQVLOHVWUXFWXUHVDQGDOORIWKRVHVKDSHVZLOOLQVPDOOVHFWLRQVUHVHPEOHD
VDGGOHVKDSHZLWKORFDOFXUYDWXUHLQWZRRSSRVLQJGLUHFWLRQV7KLVLVFDOOHGDQDQWL
FODVWLFVXUIDFH7KHIDEULFWHQVLRQVLQWKHVHWZRRSSRVLQJFXUYDWXUHVZLOOSXOODJDLQVW
HDFKRWKHUOHDGLQJWRDORFDOIRUFHEDODQFH
DQGSURYLGLQJRXWRISODQHVWLIIQHVV


+\SDU
:LWKLQWKHVHUHVWUDLQWVZHFDQFUHDWHFRQHWHQWVK\SDU
VDLOVDQGEDUUHOYDXOWVDOORIZKLFKH[KLELWORFDODQWLFODV
WLFVXUIDFHV,OOXVWUDWLRQVRIWKHVHEDVLFVKDSHVDUHVKRZQKHUH7KHOLPLWDWLRQVRQVL]H
DQGSURSRUWLRQRIWKHVHVWUXFWXUHVDUHPDWHULDOVWUHQJWKOLPLWDWLRQV$VWKHVL]HRIDVWUXF
WXUHJRHVXSWKHVWUHVVHVRQWKHVWUXFWXUHGXHWRH[WHUQDOORDGVLQFUHDVHDQGDWVRPH
SRLQWH[FHHGWKHVWUHQJWKRIWKHPDWHULDO


$OWKRXJKLWLVSHUIHFWO\SRVVLEOHWRGHVLJQDQ\VL]H
PRGHOZLWKDFRPSXWHUVLPXODWLRQLWLVXVHIXOWR
KDYHDURXJKLGHDRIWKHOLNHO\VWUHVVHVLQWKH
%DUUHO9DXOW
VWUXFWXUHGXULQJWKHGHVLJQVWDJHWRDYRLGGHVLJQLQJ
EH\RQGWKHIDEULFFDEOHRUIL[HGSRLQWVFDSDELOLWLHV6LPSOHPHWKRGVRIHVWLPDWLQJWKH
VWUHVVYDOXHVXVLQJDSSUR[LPDWLRQDQGVRPHVLPSOHPDWKVFDQEHXVHGIRUWKLV

6KDSHV7KDW$UH1RW7HQVLOH6WUXFWXUHV

6RPHVKDSHVWKDWUHVHPEOHWHQVLOHVWUXFWXUHVEXWDUHQRWKHOGLQVKDSHE\WKHDQWLFODVWLF
EDODQFHRIIRUFHVDUH


,QIODWHGVWUXFWXUHV

,QIODWHGVWUXFWXUHVDUHKHOGLQVKDSHE\DEDODQFHEHWZHHQDQLQWHUQDOLQIODWLRQSUHVVXUH
DQGWKHPHPEUDQHWHQVLRQ$VPDOOVHFWLRQRIDWHQVLOHVWUXFWXUHORRNVOLNHDVDGGOHEXWD
VPDOOVHFWLRQRIDQLQIODWHGVWUXFWXUHLVV\QFODVWLFDQGORRNVOLNHD
SDUWRIDVSKHUH

$WHQVLOHVWUXFWXUHIRUPILQGLQJSURJUDPFDQQRWILQGWKHVH
VKDSHV%XWRIWHQWKHVKDSHVDUHVLPSOHVXUIDFHVRI
UHYROXWLRQWKDWDUHHDV\WRGUDZLQ&$'SURJUDPV

7KHVDPHSDQHOLQJSURJUDPWKDWZRXOGEHXVHGIRUWHQVLOH
VWUXFWXUHVFDQWKHQSDQHOWKHVHVXUIDFHV



&ODGIUDPHV

7KHVHVKDSHVFRQVLVWRIDIUDPHZLWKIDEULFGUDSHGRYHUWKHP
([DPSOHVDUHIUDPHWHQWVDQGVLPSOHDZQLQJV,QDWUXHFODG
IUDPHWKHIUDPHHGJHVVKRXOGDOOOD\LQRQHSODQHRUWZRRI
WKHHGJHVVKRXOGEHDVXUIDFHRIUHYROXWLRQDQGWKHIDEULF
SXOOHGWLJKWEHWZHHQWKHP

1RWHLWLVFRPPRQWRGHVLJQDQDZQLQJDVDFODGIUDPHEXWWKHQZKHQWKHIDEULFLV
SXOOHGWLJKWIRUWKHIDEULFWRGHIRUPLQWRDQDQWLFODVWLFVKDSH%XWWKHGHVLJQIDEULFVKDSH
ZDVIRUDFODGIUDPH

7HQVLOHVWUXFWXUHIRUPILQGLQJSURJUDPVFDQQRWILQGWKHVHVKDSHV%XWWKHIUDPHVDUHHDV\
WRGUDZLQ&$'SURJUDPVDQGWKHQWKHSDQHOVWRILWEHWZHHQWKHIUDPHVFDQEHSURGXFHG

3ROHWHQWV

7HQWVVXSSRUWHGE\SROHVOLNHFRQHWHQWVZLWK]HURGLDPHWHU
WRSULQJVDUHDELWRIDQHQLJPD7KHRUHWLFDOO\WKH\
FDQQRWZRUNDVWHQVLOHVWUXFWXUHVDVWKHWHQVLRQ
QHDUWKHSROHWRSZRXOGEHFRPHLQILQLWH6HHVHFWLRQ

RQFRQHWHQWIRUPILQGLQJ

%XWWKHVHWHQWVDUHRIWHQGHVLJQHGXVLQJWHQVLOHVWUXFWXUHPHWKRGVDQGWKHQVXFFHVVIXOO\
EXLOW3UREDEO\WKHH[LVWHQFHRIODFHOLQHVRUVWLIIVHDPVDORQJWKHKLSVDOORZVWKHWHQWWR
EHFRQVLGHUHGDVDFDEOHVXSSRUWHGVWUXFWXUHZLWKDIDLUO\ORZIDEULFVWUHVV


6RWHQVLOHVWUXFWXUHIRUPILQGLQJSURJUDPVDUHXVHGWRILQGWKHVHVKDSHVDQGWKHQWR
SDQHOWKHP

)RUPDO6WHSVWR'HVLJQD7HQVLOH6WUXFWXUH


7KHGHVLJQRIDWHQVLOHVWUXFWXUHXVXDOO\JRHVWKURXJKWKHVHVWDJHV

(VWDEOLVKWKHERXQGDU\SRLQWVRUHGJHV
:LWK03DQHOWKLVLVGRQHE\GUDZLQJD'3RO\OLQHRXWOLQHRIWKHIUDPHRUIL[HG
SRLQWVLQ\RXU&$'V\VWHP

)LQGDQDQWLFODVWLFVXUIDFHWKDWZLOOILWEHWZHHQWKHVHERXQGDULHVIRUPILQGLQJ
:LWK03DQHOZHDGGPHVKHVWRUHSUHVHQWIDEULFVXUIDFHVDQGWKHQUXQWKH
UHOD[DWLRQWRROWKDWZLOOILQGWKHFRUUHFWDQWLFODVWLFVKDSH

(VWLPDWHWKHVWUHVVHVDQGVHHLIWKH\DUHUHDVRQDEOHIRUWKHPDWHULDOVWREHXVHG
03DQHOZLOOUHSRUWWKHPHVKFXUYDWXUHLQWKHWZRPDLQPHVKGLUHFWLRQVDQGFDQ
UHSRUWWKHFDWHQDU\UDGLXVIRUDQ\FDEOH7KHVHFDQEHXVHGWRJHWDTXLFN
HVWLPDWHRIWKHIDEULFVWUHVVFDEOHWHQVLRQVDQGFRUQHUORDGV

&ULWLFDOO\ORRNDWWKHVXUIDFHVKDSHIRUDUHDVWKDWFRXOGSRQGZDWHUIODWVSRWVVKDUS
HGJHVLQWHUIHUHQFHZLWKH[LWLQJSROHVRUVWUXFWXUHHWF
6LQFH03DQHOZRUNVGLUHFWO\LQ\RXU&$'GUDZLQJWKLVLVDFKLHYHGE\
LQVSHFWLQJWKHPRGHOLQGLIIHUHQWYLHZVDQGXVLQJWKHRUELWWRRO

'HFLGHRQDVHDPOD\RXWWKHQFRQYHUWWKHDQWLFODVWLFVKDSHWRIODWSDQHOV3DQHOLQJ
8VHWKH03DQHOGLUHFWSDQHOLQJWRROVIRUVLPSOHSDQHOV2UWKHFURVVVHFWLRQ
DQGJHRGHVLFWRROVIRUPRUHDGYDQFHGSDQHOLQJ

6KULQNWKHSDQHOVWRLQWURGXFHSUHVWUHVVFRPSHQVDWLRQ
8VHWKH03DQHOFRPSHQVDWLRQWRRO

$GGVHDPDOORZDQFHVIRUVHZLQJZHOGLQJHGJHIL[LQJ
8VHWKH03DQHOVHDPDOORZDQFHWRRO

3URGXFWLRQL]HWKHSDQHOVVRWKH\DUHUHDG\WRSORWRUFXWRQ\RXUHTXLSPHQW
8VHWKH03DQHO6WDPSDQG2XWSXWWRROV

)RUP)LQGLQJ


+HUHDUHVRPHYHU\JHQHUDOVKDSHJXLGHOLQHVIRUWHQVLOHVWUXFWXUHV6RPHWHQVLOHVWUXFWXUHV
ZLOOQRWFRQIRUPWRDOORIWKHVHJXLGHOLQHVEXWWKH\SURYLGHDVHWRILGHDOVWRDLPIRULQ
\RXUGHVLJQ


x 7KHIL[HGERXQGDULHVRIWKHVWUXFWXUHVKRXOGEHHVVHQWLDOO\VPRRWKDYRLGLQJVKDUS
FRUQHUVRUVXGGHQDQGODUJHFKDQJHVLQGLUHFWLRQ2IFRXUVHZLWKFDEOHHGJHVWKHFDEOHV
ZLOOSXOOWRJHWKHULQWRDFRUQHUSRLQWEXWDVIDUDVWKHIDEULFLVFRQFHUQHGWKHHGJHV
FUHDWHGE\WKHFDEOHVDUHVPRRWK

x 7KHERXQGDULHVVKRXOGKDYHDPXFKDVYHUWLFDOGLIIHUHQFHDVLVSRVVLEOHEHWZHHQWKHP
ERWKWRLQFUHDVHIDEULFFXUYDWXUHDQGWRSURPRWHZDWHUUXQRII7KHYHUWLFDOGLIIHUHQFH
PD\EHEHWZHHQSROHKHLJKWVRQDK\SDURUEHWZHHQWKHWRSULQJDQGWKH
ERWWRPERXQGDU\RQDFRQHWHQW7KLVZLOOSURYLGHWKHVWUXFWXUHZLWK
LQKHUHQWVWLIIQHVVDQGUHGXFHWKHQHHGIRUH[FHVVLYHSUHVWUHVVWKHIODWWHU
 WKHVWUXFWXUHWKHKLJKHUWKHSUHVWUHVVZLOOQHHGWREHWRUHPDLQLQWHQVLRQ
XQGHUORDGDQGWRSUHYHQWH[FHVVLYHGHIOHFWLRQVZKLFKFDQFDXVHIDEULFWR
IDLOWKURXJKGHODPLQDWLRQ

x 7KHFXUYDWXUHLQWKHWZRSULQFLSOHGLUHFWLRQVVKRXOGEHVLPLODUDVWKLV
HQVXUHVDQHTXDOFDSDFLW\WRFRSHZLWKORDGVLQHLWKHUGLUHFWLRQHJZLQG
DQGVQRZORDGVDQGPDNHVWKHPRVWHIILFLHQWXVHRIWKHIDEULFVWUHQJWK
7KHWZRSULQFLSOHFXUYDWXUHVDUHVKRZQKHUHIRUDEDUUHOYDXOW7KLVLV
WKHVDPHWKLQJDVVD\LQJWKHVWUHVVHVVKRXOGEHHTXDOLQWKHWZRSULQFLSOH
GLUHFWLRQWKHZDUSDQGZHIWGLUHFWLRQV
,Q03DQHOVSHFLI\DZHIWZDUSWHQVLRQUDWLR WRDFKLHYHWKLV

x 7KHUDGLXVRIFXUYDWXUHRIWKHPHPEUDQHLQLWVWZRPDLQGLUHFWLRQVVKRXOGEHEHORZD
FHUWDLQYDOXHGHWHUPLQHGIURPWKHIDEULFVWUHQJWKDQGH[SHFWHGORDGLQJWRJLYHDURXJK
JXLGHWKDWWKHIDEULFVWUHVVZLOOEHZLWKLQWKHIDEULFVOLPLWV7KLVPD[LPXPUDGLXVYDOXH
FRXOGEHNQRZQIURPSUHYLRXVH[SHULHQFHZLWKVLPLODUVWUXFWXUHVRUZRUNHGRXWXVLQJ
VRPHVLPSOHPDWKVDQGDSSUR[LPDWLRQV7KHLQWHQWLRQKHUHLVWRKDYHDVLPSOH
JXLGHOLQHWRZDUQZKHQZHDUHGHVLJQLQJEH\RQGWKHIDEULFVVWUHQJWK

03DQHOZLOOUHSRUWWKHUDGLLRIDPHVKDQGIRUVLPSOHVKDSHVWKLVFDQEHXVHGDVWKH
SULQFLSOHUDGLXV$QH[FHSWLRQLVWKHK\SDUVDLOZKHUHWKHSULQFLSOHUDGLXVUXQV
GLDJRQDOO\+HUH\RXKDYHWRREWDLQDGLDJRQDOE\XVLQJWKH03DQHOFURVVVHFWLRQWRRO
WRJHWWKHFRUUHFWSULQFLSOHUDGLXV

6SHFLILF)RUP)LQGLQJ,VVXHV

+HUHZHFRPPHQWRQVRPHVSHFLILFPRGHOLQJLVVXHVZLWKFRPPRQPRGHOW\SHV


)L[HGERXQGDULHVDZQLQJV

7KHJHQHUDWLRQRIDVXUIDFHWRILWDVXSSOLHGIUDPHFDQEHSUREOHPLIWKHIUDPHZDVQW
GHVLJQHGWRVXLWDWHQVLOHVWUXFWXUH,WPD\FRQWDLQVKDUSFRUQHUVEHWRRIODWRUQRWSURPRWH
DQDQWLFODVWLFVKDSH

$VDQH[DPSOHORRNDWSXWWLQJDDZQLQJDURXQGDFRUQHURIDEXLOGLQJ7KHVKDUSFRUQHU
ZLOOOHDGWRDVXGGHQFKDQJHLQFXUYDWXUHLQWKHPHPEUDQHZKLFKZLOOEH
GLIILFXOWWRSDQHO
$QGXQGHUORDGDVWKHPHPEUDQHGHIOHFWVWKHVKDUS
FRUQHUZLOOEHFRPHDKLJKVWUHVVUHJLRQLQWKHIDEULF

$SRVVLEOHVROXWLRQZRXOGEHWRVPRRWKWKHFRUQHUZLWK
DFXUYHGIUDPHDVVKRZQKHUH7KLVZRXOGDOOHYLDWHWKH
VKDUSFRUQHUSUREOHPEXWZLOOOHDYHDJDSEHWZHHQWKHDZQLQJDQGWKHFRUQHU,IWKLVLVQW
DFFHSWDEOHDVHSDUDWHIODVKLQJFRXOGEHEXLOWRYHUWKHJDS



%DUUHOYDXOWVSHFLILFV 



$SDUWLFXODUO\XVHIXOIRUPRIDIL[HGHGJHVWUXFWXUHLVWKHEDUUHOYDXOW$VVKRZQLWFDQEH
EXLOWZLWKHTXDOUDGLLLQERWKGLUHFWLRQV$QXPEHU
RIEDUUHOYDXOWVFDQEHMRLQHGWRJHWKHUWRFRYHUD
VSDFHLQDPRGXODUIDVKLRQDVVKRZQKHUH

$SHUIHFWEDUUHOYDXOWGHVLJQZRXOGKDYHWKH
ERWWRPHGJHGFXUYHGLQWRPDWFKWKHIDEULFFXUYDWXUHEXWRIWHQ
DVWUDLJKWHGJHRUFDEOHHGJHERWWRPERXQGDU\LVXVHG

7KHHGJHGHWDLORQDIL[HGIUDPHRUKRZWKHIDEULFLVDWWDFKHGWRWKHIUDPHQHHGVFDUHIXO
FRQVLGHUDWLRQDVLWQHHGVWREHDQDWWDFKPHQWWKDWDOORZVWKHIDEULFSUHVWUHVVWREHFUHDWHG
GXULQJWKHLQVWDOODWLRQ

+\SDUVSHFLILFV

7KHK\SDURUVKDGHVDLOGHVLJQKDVDWOHDVWFDEOHHGJHVVWUHWFKHGEHWZHHQORZDQGKLJK
SRLQWVRQSROHV,WLVDYHU\HIILFLHQWZD\RIFRYHULQJDQDUHD


1RWHVKDGHVDLOVZLWKMXVWHGJHVDUHQRWDQWLFODVWLFVXUIDFHVDVWKHSRLQWVOLHLQD
SODQHVRWKHPHPEUDQHDQGFDEOHVZLOOOLHH[DFWO\IODW+RZHYHUWKH\DUHXVHGLQVRPH
VLWXDWLRQV


7KHQDWXUHRIDK\SDULVWKDWWKHIDEULFVWUHVVDUHFROOHFWHGLQWRWKHFDEOHVDQGWKHFDEOH

WHQVLRQVDUHFROOHFWHGDWWKHIL[HGSRLQWV7KLVFRQFHQWUDWLRQRIWKHIDEULFVWUHVVLQWRWKH
FRUQHUIL[HGSRLQWVFDQOHDGWRKLJKIRUFHVDWWKHIL[HGSRLQWVVRWKHGHVLJQKDVWRNHHS
WKHOLNHO\IRUFHVLQPLQG6LPLODUO\VLJQLILFDQWO\DV\PPHWULFVKDSHVZLWKODUJHO\GLIIHUHQW
DVSHFWUDWLRVZLOOUHVXOWLQDV\PPHWULFFRUQHUIRUFHVFRPSOLFDWLQJWKHGHVLJQRIFODPSLQJ
V\VWHPV$OVRYHU\QDUURZFRUQHUVDQJOHVZLOOUHVXOWLQKLJKHUUHDFWLRQIRUFHV

$QHVWLPDWLRQRIWKHFDEOHWHQVLRQVDQGFRUQHUSRLQWIRUFHVLVHDV\DQGVKRZQLQWKH
DSSHQGL[EXWHVVHQWLDOO\WKHVWUDLJKWHU\RXPDNHWKHFDEOHVWKHPRUHWHQVLRQWKHUHLVLQ
WKHPDQGWKHPRUHIRUFHWKHUHZLOOEHRQWKHFRUQHUSRLQWV
:LWK03DQHOWKHFDEOHVKDSHLVVHWZLWKWKHFDEOHWHQVLRQUDWLRIRUHDFKHGJH

,QDGGLWLRQWKHFXUYDWXUHRIWKHPHPEUDQHLVZKROO\
GHWHUPLQHGE\WKHKHLJKWGLIIHUHQFHEHWZHHQWKHFRUQHU
SRLQWV

:LWKDVPDOOKHLJKWGLIIHUHQFHWKHVDLOVKDSHKDVDODUJHFXUYDWXUH
ZKLFKZLOOPHDQORZVWLIIQHVVDQGODUJHVWUHVVHVZKHQ
ORDGHG$ODUJHKHLJKWGLIIHUHQFHZLOOKHOSRYHUFRPHWKHVH
SUREOHPV

7KHGUDZLQJLOOXVWUDWHVODUJHDQGVPDOOKHLJKWGLIIHUHQFHK\SDUV

&RQHWHQWVSHFLILFV

&RQHWHQWVDUHFKDUDFWHUL]HGE\DWRSULQJDQGDERWWRP
ERXQGDU\$QXPEHURIFRQHWHQWVFDQEH
PHUJHGWRJHWKHUWRPDNHDFRYHULQJIRUDODUJH
DUHDDVVKRZQKHUH

7KHPDLQFKDUDFWHULVWLFRIDFRQHWHQWLVWKDWWKHIDEULFDURXQGWKHWRSULQJLVXVXDOO\DWD
KLJKHUVWUHVVWKDQWKHIDEULFDURXQGWKHERWWRPERXQGDU\6HHWKHDSSHQGL[IRUDIXOOHU
GLVFXVVLRQEXWDJXLGHOLQHZRXOGEHWKDWWKHUDWLREHWZHHQWKHWRSDQGERWWRPVWUHVVHVLV
KDOIWKHUDWLREHWZHHQWKHERWWRPDQGWRSSHULPHWHUVIRUHDFKLQGLYLGXDOFRQHWHQW

6RLIWKHWRSULQJGLDPHWHULVPHWHU\DUGDQGWKHERWWRPERXQGDU\SHULPHWHULV
PHWHUV\DUGVWKHQZHZLOOKDYHDVWUHVVYDULDWLRQRI

1RWHIRUVRPHPRGHOVLWLVSRVVLEOHWRIRUPILQGDFRQHWHQWVKDSHWKDWGRHVQRWKDYHWKLV
VWUHVVYDULDWLRQ%XWWKHOLPLWDWLRQVRQWKHHYHQVWUHVVVKDSHVSRVVLEOHPDNHWKLVVLWXDWLRQ
XQXVXDO

$VWUHVVYDULDWLRQRIPHDQVWKDWZKHQWKHIDEULFDURXQGWKHWRSULQJLVDVWLJKWDVZH
FDQVDIHO\JHWLWWKHIDEULFDURXQGWKHERWWRPERXQGDU\ZLOOEHUDWKHUVODFNHUWKDQZH
ZRXOGOLNHWRVHH7KLVSUREOHPJHWVZRUVHDVWKHWRSULQJJHWVSURSRUWLRQDOO\VPDOOHU


,QDGGLWLRQDFRQHWHQWRIWHQQHHGVPRUHUDGLDOWHQVLRQWKDQFLUFXPIHUHQWLDOWHQVLRQWR
KROGLWVVKDSH7KHGUDZLQJDERYHZDVPDGHZLWKDUDGLDOVWUHVVWLPHVWKH
FLUFXPIHUHQWLDOVWUHVV
,Q03DQHO\RXDFKLHYHWKLVE\VSHFLI\LQJDZHIWZDUSWHQVLRQUDWLRRI


7KHVHWZRIDEULFVWUHVVLVVXHVPHDQWKDWFRQHWHQWVPDNHDORWRIGHPDQGVRQWKHIDEULF
DQGVRVKRXOGEHGHVLJQHGZLWKVRPHWKRXJKWWRWKHOLNHO\VWUHVVHVDQGVWUHVVYDULDWLRQV




,WZLOODOZD\VEHEHQHILFLDOWRLQFUHDVHWKHWRSULQJGLDPHWHU6RPHWLPHVLWZLOODOVRKHOS
WRORZHUWKHWRSULQJDOWKRXJK\RXQHHGWRNHHSHQRXJKIDEULFHGJHDQJOHWRJHWD
UHDVRQDEOHZDWHUUXQRII,WPD\EHQHFHVVDU\WRUHLQIRUFHWKHIDEULFDURXQGWKHWRSULQJ
SHUKDSVE\GRXEOLQJXSEXWWKHGHWDLOVKHUHQHHGWREHZHOOWKRXJKWRXW

'HVSLWHWKHDERYHFDXWLRQVWKHFRQHWHQWDQGLWVGHULYDWLYHVIRUPDQLPSRUWDQWDQGXVHIXO
DUHDFRYHULQJDQGDUHZLGHO\XVHGWHQVLOHVWUXFWXUHV

&DEOHVWLIIHQHGVWUXFWXUHV

&DEOHVWLIIHQHGVWUXFWXUHVKDYHWKHLURYHUDOOVKDSHGHWHUPLQHGE\FDEOHVZKLFKSXOOWKH
IDEULFLQWRVKDSHVWKDWDUHQRWHDVLO\DFKLHYHGZLWKDPHPEUDQHVXUIDFHDORQH7KHFDEOHV
PD\LQUHDOLW\EHZHEELQJEHOWVURSHVRUDVHZQLQEUDLG

$VLPSOHH[DPSOHRIWKLVLVXVLQJ
FDEOHVLQWKHKLSVRIDSROHWHQWWR
GHILQHWKHVKDSH,QWKLVVLWXDWLRQWKH
LPSRUWDQFHRIWKHIDEULFVWUHVVLQ
GHWHUPLQLQJWKHRYHUDOOVKDSHLV
UHGXFHGDQGLWLVIHDVLEOHWRGHVLJQ
SROHWHQWVZLWKKLSFDEOHVDWDFRQVWDQWIDEULFVWUHVV

,QWKHLOOXVWUDWLRQZHVKRZWKHHIIHFWRIDGGLQJFDEOHVWRVWLIIHQWKHKLSVRQDVTXDUHSROH
WHQW
:LWK03DQHOWKLVLVDFKLHYHGE\XVLQJWKHFDEOHHGJHUHOD[DWLRQWRROZKLFK
DXWRPDWLFDOO\DGGVDFDEOHEHWZHHQHDFKPHVK

7KHWUDGHRIIIRUWKLVLVWKDWWKHIDEULFVWUHVVHVDUHFROOHFWHGLQWRWKHVWLIIHQLQJFDEOHV
ZKLFKPXVWEHVWURQJHQRXJKWRFRSH7KHWLJKWHUWKHKLSFDEOHVDUHWRPDNHDPRUH
GHILQHGKLSOLQHWKHPRUHWHQVLRQZLOOEHGHYHORSHGLQWKHKLSFDEOHV$OVRNHHSLQPLQG
WKLVZLOOWHQGWRUHGXFHWKHGHVLUHGIDEULFFXUYDWXUHDVGLVFXVVHGHDUOLHU

7KLVLVSUREDEO\WKHEHVWWHQWGHVLJQPHWKRGWRWUDQVLWLRQWUDGLWLRQDOWHQWGHVLJQHUVLQWR
WHQVLOHVWUXFWXUHVDVLWDOORZVWKHWHQWVKDSHVWKDWWKH\DUHIDPLOLDUZLWKWREHSURGXFHG
IDLUO\HDVLO\

3DQHOLQJ

7KHJHQHUDOJXLGHOLQHVIRUSDQHOLQJDWHQVLOHVWUXFWXUHDUH

x
6HDPVVKRXOGIROORZWKHJUHDWHVWVWUHVVOLQH
x
(QRXJKVHDPVWRNHHSWKHVKHDUVWUHVVORZHQRXJK
x
6HDPDWHDFKFRUQHUFXUYDWXUHFKDQJH
x
(QRXJKVHDPVWRNHHSWKHFURVVWKUHDGFKDQJHVPDOO
x
6FDOHGGRZQPRGHOQHHGVWKHVDPHQXPEHURISDQHOVDVDIXOOVL]H


6HDPVIROORZJUHDWHVWVWUHVVOLQH

7KHVHDPVDUHXVXDOO\ZHDNHUWKDQWKHEDVHIDEULFDQGDUHDOVRVXEMHFWWRPRUH
YDULDELOLW\LQVWUHQJWK$VDQDVLGHLQDZHOGHGVHDPZHDUHQRWZHOGLQJWKHZDUS
DQGZHIWILEHUVDWDOOMXVWWKHFRDWLQJ,IWKHVHDPVUXQSDUDOOHOWRWKHJUHDWHVWVWUHVV
WKHQWKHVWUHVVDFURVVWKHVHDPVLVORZHVW$OVRWKHUHLVVPDOOVWLIIHQLQJVWUHQJWKHQLQJ
HIIHFWIURPWKHPDWHULDOGRXEOLQJDWWKHVHDPZKLFKKHOSVLILWLVLQOLQHZLWKWKH
JUHDWHVWVWUHVV

7KHGLUHFWLRQRIJUHDWHVWVWUHVVYDULHVDFFRUGLQJWRWKHORDGLQJEXWLVRIWHQNQRZQ
IURPWKHVKDSHZHIWZDUSWHQVLRQUDWLRRUYLVXDOLQVSHFWLRQRIWKHORDGLQJFRQGLWLRQV

)RULQVWDQFHLQDFRQHWHQWWKHVNLQVWUHVVIRUWKHVWDWLFFDVHZLOOXVXDOO\EHKLJKHULQ
WKHUDGLDOGLUHFWLRQVVRLWPDNHVVHQVHKHUHWRUXQWKHVHDPV
UDGLDOO\

$GGLWLRQDOO\E\PDNLQJWKHVHDPVIROORZWKH
JUHDWHVWVWUHVVWKHZDUSWKUHDGVLQWKHPDWHULDOZLOO
DOVRIROORZWKHJUHDWHVWVWUHVV2IWHQWKHZDUSWKUHDGVDUH
VWURQJHUDQGH[KLELWOHVVVWUHWFKWKDQWKHZHIWWKUHDGV

,Q03DQHOWKLVSDQHOLQJLVWKHGHIDXOW<RXKDYHWRVSHFLI\SDQHODFURVVPHVKWRJHW
WKHVHDPVUXQQLQJLQWKHRWKHUGLUHFWLRQ



(QRXJKVHDPVWRNHHSWKHVKHDUVWUDLQORZ

:KHQIODWWHQLQJFRQYHUWLQJD'VKDSHWR'SDQHOVDQDQWLFODVWLFVKDSHWRSURGXFH
DSDQHOWKHUHLVDOZD\VVRPHIDEULFGLVWRUWLRQ6LQFHZLWKDIDEULFWKHVWLIIQHVVRQWKH
ELDVLVPXFKOHVVWKDQWKHVWLIIQHVVLQWKHZHIWRUZDUSGLUHFWLRQV
WKLVGLVWRUWLRQLVDOORZHGWRRFFXURQWKHELDVDVDVKHDUVWUDLQ
7KHVKHDUVWUDLQFDQEHPHDVXUHGHLWKHUDVDSHUFHQWDJHRIWKH

GLDJRQDOOHQJWKFKDQJHRUDQDQJXODUGHIRUPDWLRQ:KLFKHYHU
\RXXVHWKHUHZLOOEHDOLPLWWRKRZPXFKGLVWRUWLRQWKHIDEULFFDQ
WDNHZLWKRXWVKRZLQJGLVWUHVVVXFKDVSXFNHULQJRUZULQNOLQJ

,QWKHLOOXVWUDWLRQDVPDOOVTXDUHRIWKHIDEULFLQEODFNLVGLVWRUWHGWRWKHJUHHQVKDSH

7KLVGLVWRUWLRQLVSXUHVKHDUGLVWRUWLRQ


7KHVKHDUVWUDLQOLPLWZLOOFKDQJHZLWKWKHVHOHFWHGIDEULFWKHSUHVWUHVVOHYHODQGWKH
FXVWRPHUWROHUDQFHIRUZULQNOHV$JXLGHOLQHIRUDUFKLWHFWXUDOIDEULFVLVWRVWD\EHORZ
VKHDUVWUDLQZKLOVWLQWKHHYHQWLQGXVWULHVIDEULFVVLPLODUWR/\FUDFDQWDNHVKHDU
VWUDLQZLWKRXWYLVLEOHGLVWUHVV7KHVHDUHGLDJRQDOOHQJWKFKDQJHPHDVXUHPHQWV

,Q03DQHOWKHVKHDUVWUDLQLVUHSRUWHGIRUHDFKSDQHODQGLILWH[FHHGVDOLPLWYDOXHD
ZDUQLQJLVLVVXHG

6RZKHQSDQHOLQJ\RXKDYHWRPRQLWRUWKHVKHDUVWUDLQRQHDFKSDQHODQGDGGH[WUD
SDQHOVLIWKHVKHDUVWUDLQLVWRRKLJK7KLVPHDQVWKDWWKHSDQHOZLGWKLVQRWGHWHUPLQHG
E\WKHUROOZLGWKRUE\WKHSURGXFWLRQGHSDUWPHQWEXWE\WKHIDEULFVDELOLW\WRGHIRUP
LQWRWKHUHTXLUHGVKDSH



6HDPDWHDFKFRUQHUFXUYDWXUHFKDQJH

$OWKRXJKZHVKRXOGDYRLGVKDUSFRUQHUVRQWKHERXQGDULHVVRPHWLPHVWKH\DUHIRUFHG
RQXVVXFKDVWKHFRUQHUVRIDVTXDUHEDVHFRQHWHQWRUDFDEOHFROOHFWLRQSRLQWLQD
K\SDU

7KLVZLOOIHHGDFKDQJHRIFXUYDWXUHLQWRWKHIDEULFOLNHDULGJH,I\RXSDQHORYHUWKLV
ULGJHWKHIDEULFZLOOKDYHWRGLVWRUWWRDFFRPPRGDWHWKHFKDQJHLQFXUYDWXUH,WLVEHWWHU
WRVXSSO\DVHDPDWWKHFRUQHUVRWKHPDMRULW\RIWKH
VKDSHFKDQJHLVDFFRPPRGDWHGLQWKHVHDP

6RZHVKRXOGSDQHOWRLQFOXGHDVHDPWRDQ\FRUQHUVDV
VKRZQRQWKHOHIWVHWRISDQHOVUDWKHUWKDQWKHGUDZLQJRQWKHULJKW


(QRXJKVHDPVWRNHHSWKHFURVVWKUHDGFKDQJHVPDOO

,IWKHSDQHOVDUHODUJHLQUHODWLRQWRWKHFXUYHGVWUXFWXUHWKHZHIWWKUHDGVDWWKHVHDP
ZLOOKDYHDODUJHDQJOHEHWZHHQWKHP7KLVFDQEHVHHQLQ
WKHLOOXVWUDWLRQRQWKHULJKWZLWKWKHSDQHORXWOLQHLQ*UHHQ
DQGWKHZHIWWKUHDGVLQ%OXH

7KHZHIWWKUHDGWHQVLRQDWWKDWDQJOHZLOOSXOOWKHVHDPXS
DQGOHIWDQGFDQOHDGWRYLVLEOHSXFNHUVDFURVVWKHVHDPDV
SDUWVRIWKHVHDPORRVHWHQVLRQ

7KHSDQHOVHWRQWKHULJKWZLWKVPDOOHUSDQHOVKDVDPXFKVPDOOHUFURVVWKUHDGDQJOH




6FDOHGGRZQPRGHOQHHGVWKHVDPHQXPEHURISDQHOVDVDIXOOVL]H


$FRQVHTXHQFHRIWKHDERYHQRWHVLVWKDWIRUWKHVDPHPDWHULDODQGSUHVWUHVV\RXQHHG
WKHVDPHQXPEHURISDQHOVWRFUHDWHDJLYHQVKDSHLQGHSHQGHQWRIWKHVWUXFWXUHVVL]H
/HWVVD\\RXKDYHDPHWHU\DUGFRQHWHQWDQGGHWHUPLQHWKDWLWQHHGVSDQHOVWR

NHHSWKHVKHDUVWUDLQUHDVRQDEOH2QDVLPLODUMREUHTXLULQJDPHWHU\DUGFRQHWHQW
\RXZLOOVWLOOQHHGSDQHOV

6SHFLILF3DQHOLQJ,VVXHV


+RUL]RQWDOSDQHOLQJ

,IDGHFLVLRQLVPDGHWRSDQHODFRQHWHQWKRUL]RQWDOO\ZHUXQLQWRWZRPDLQSUREOHPV

7KHELJJHVWFXUYDWXUHFKDQJHLVDURXQGWKHWRSULQJDQGDVWKHIDEULFLVIRUFHGWRWKH
ERWWRPERXQGDU\UHVWUDLQWV6RWKHWRSKRUL]RQWDODQGERWWRPKRUL]RQWDOSDQHOVKDYHODUJHU
VKHDUVWUDLQVWKDQWKHRWKHUSDQHOV7KLVPD\UHTXLUHWKHWRSDQGERWWRPSDQHOVVSOLWWLQJLQ
WZRWRJHWDQH[WUDVHDPLQRQWKHKLJKVKHDUVWUDLQDUHDV

7KHKRUL]RQWDOSDQHOVZLOOXVXDOO\UXQWRWKHKLSVDWWKHFRUQHUV$WWKHKLSVWKHFURVVLQJ
WKUHDGVZLOOEHDWDODUJHDQJOHZKLFKFDQOHDGWRVHDPSXFNHULQJ




,PSURYLQJSDQHOVKDSHV

7KHEDVLFSDQHOVSURGXFHGIURPDPHVKZLOOIROORZWKH
OLQHVLQWKHPHVK7KLVFDQOHDGWRSDQHOVZLWKDFXUYHG
FHQWHUOLQHDQGDFRQYH[VKDSHGHGJH,QDQLGHDOSDQHO
IRUDQDQWLFODVWLFVXUIDFHWKHPLGOLQHRIWKHSDQHOLV
VWUDLJKWDQGOHIWDQGULJKWHGJHVVKRXOGKDYHDVOLJKW
FRQFDYHFXUYH

7KHH[WUDFXUYDWXUHRQWKHHGJHFDXVHVGLIILFXOWLHVGXULQJZHOGLQJRSHUDWLRQVDQGOHDGVWR
PRUHIDEULFZDVWHRQWKHUROO

6WUDLJKWHUSDQHOVFDQXVXDOO\EHSURGXFHGE\XVLQJFURVVVHFWLRQVWKDWLVE\XVLQJVHDPV
WKDWQRORQJHUIROORZWKHPHVKOLQHVEXWIROORZDVWUDLJKWSDWKZKHQYLHZHGIURPDERYH
,QWKHLOOXVWUDWLRQWKH*UHHQSDQHOVDUHGLUHFWO\IURPWKHPHVKWKH%OXHSDQHOVDUHIURP
FURVVVHFWLRQV

$UHILQHPHQWRIXVLQJFURVVVHFWLRQVLVWRXVHJHRGHVLFV$JHRGHVLFLVWKHVKRUWHVWSDWK
DFURVVD'VXUIDFHDQGXVLQJJHRGHVLFVDVVHDPVJLYHVWKHVWUDLJKWHVWSDQHOV2QVRPH
V\PPHWULFDOVKDSHVWKHUHLVOLWWOHGLIIHUHQFHEHWZHHQDJHRGHVLFDQGDFURVVVHFWLRQEXWLQ
RWKHUVLWXDWLRQVJHRGHVLFVFDQVLJQLILFDQWO\VWUDLJKWHQSDQHOV

%RWKFURVVVHFWLRQLQJDQGJHRGHVLFVDUHVXSSRUWHGLQ03DQHO$QGWKHUHVXOWLQJFURVV
VHFWLRQVFDQEHGLUHFWO\FRQYHUWHGLQWRDSDQHORUDVHWRISDQHOV

&RPSHQVDWLRQ

&RPSHQVDWLRQLVWKHGHOLEHUDWHVKULQNLQJRIDSDQHOVRWKDWZKHQLWLVVWUHWFKHGRXWWRLWV
RULJLQDOGHVLJQVL]HLWKDVDSUHVWUHVV6RWKHFRPSHQVDWLRQDPRXQW
GHSHQGVRIWKHIDEULFVWUHWFKDQGWKHUHTXLUHGSUHVWUHVV

,QWKHLOOXVWUDWLRQWKH*UHHQSDQHOVDUHFRPSHQVDWHGIURPWKH
RULJLQDOUHGSDQHOV

8QIRUWXQDWHO\WKHIDEULFVWUHWFKFKDUDFWHULVWLFVDUHQRQOLQHDU
LQFOXGLQJDVHWWOLQJVWUHWFKDQGVWUHWFKFKDUDFWHULVWLFVWKDWGHSHQGV
RQKRZWKHVWUHVVLVDSSOLHG)RUWKLVUHDVRQWKHFRPSHQVDWLRQYDOXHV
XVHGDUHVRPHWLPHVGHWHUPLQHGPRUHE\SUHYLRXVFRPSDQ\H[SHULHQFHWKDQE\FDOFXODWLRQ
9DOXHVDURXQGZHIWDQGZDUSDUHW\SLFDOIRUFRPPRQDUFKLWHFWXUDOIDEULFV

$QH[DPSOHRIFDOFXODWLQJWKHUHTXLUHGFRPSHQVDWLRQYDOXHVLVVKRZQLQWKHDSSHQGL[

,Q03DQHOZHVSHFLI\DFRPSHQVDWLRQSHUFHQWDJHLQZHIWDQGZDUS



'HFRPSHQVDWLRQ

$SDUWLFXODUSUREOHPDULVHVZKHQDFRQHWHQWKDVEHHQFRUUHFWO\FRPSHQVDWHGLQWKDWWKH
DVVHPEOHGIDEULFZLOOQRZQRWILWRYHUWKHWRSULQJ2QHVROXWLRQLVWRGHFRPSHQVDWHDQDUHD
DURXQGWKHWRSULQJWRHQDEOHDILWRYHUWKHWRSULQJ7KLVLVHQWLUHO\DIDEULFDWLRQLVVXH
ZLWKQREDVLVLQWKHRU\DWDOO

03DQHOVXSSRUWVGHFRPSHQVDWLRQ



9DULDEOHFRPSHQVDWLRQ

2QVWUXFWXUHVVXFKDVFRQHWHQWVWKDWKDYHKLJKHUSUHVWUHVVDURXQGWKHWRSULQJWKHUHLVDQ
DUJXPHQWIRUXVLQJKLJKHUYDOXHVIRUWKHFRPSHQVDWLRQLQWKHVHDUHDVOHDGLQJWRYDULDEOH
FRPSHQVDWLRQ

03DQHOVXSSRUWVYDULDEOHFRPSHQVDWLRQ

6HDP$OORZDQFH

7KHJXLGLQJSULQFLSOHRIDGGLQJDVHDPDOORZDQFHLVWKDWWKH
RULJLQDOSDQHOHGJHSRVLWLRQVRPHWLPHVFDOOHGWKHSDQHOV\VWHP
OLQHVKRXOGQRWPRYH6RWKHVHDPVKRXOGNHHSWKHSDQHO
V\VWHPOLQHLQWKHVDPHSODFH7KLVLVXVXDOO\DFKLHYHGE\
VSHFLI\LQJWKHVDPHVHDPZLGWKRQWKHSDQHOOHIWDQGULJKWVLGHV

6RLQWKHSDQHOVVKRZQLQWKHLOOXVWUDWLRQWKHDGGLWLRQRIDVHDP
RQWKHJUHHQSDQHOVGRHVQRWFKDQJHWKHSRVLWLRQRIWKHRULJLQDOSDQHOHGJHVVKRZQLQUHG

7KHVHDPZLGWKUHTXLUHGLVGHWHUPLQHGE\UHFRPPHQGDWLRQVIURPWKHIDEULF
PDQXIDFWXUHUWRREWDLQDVHDPWKDWXQGHULGHDOVLWXDWLRQVLVWKHVDPHVWUHQJWKDVWKHEDVH
PDWHULDO:LWKVPDOOSDQHOVWKLVPD\EHLPSRVVLEOHWRDFKLHYHDVWKHVHDPZLGWKFDQ
H[FHHGWKHSDQHOZLGWKVRVRPHWLPHVDFRPSURPLVHLVQHHGHG

7KHJXLGHOLQHLVDFXUYHGUDZQDORQJWKHSDQHOHGJHWKDWVKRZVWKHSRVLWLRQRIWKHQH[W
SDQHOVHGJHZKHQWKHSDQHOLVOLQHGXSUHDG\WRZHOGRIWHQUHIHUUHGWRDVZHOGWR
PDUN

$OLJQPHQWPDUNVDUHSODFHGDWUHJXODUGLVWDQFHVDORQJWKHSDQHOHGJHVRIWHQUHIHUUHGWR
DVZLWQHVVPDUN:KHQZHOGLQJRUVHZLQJWKHSDQHOVWKHVHPDUNVVKRXOGOLQHXSIURP
RQHSDQHOWRDQRWKHU

6OLWVDUHXVHGZKHQPDNLQJDSRFNHWIRUDFDEOHZKHQZHQHHGWRWXUQEDFNWKHSDQHO
HGJHZKLFKPD\EHFXUYHG7RDOORZWKHFXUYHGHGJHWREHWXUQHGEDFNWKHVHDPFDQ
KDYHVOLWVDGGHGWRLWDWUHJXODULQWHUYDOV







1RUPDOVHDP
$QRUPDOVHDPLVXVHGZKHQWKHSDQHOVZLOOEHVHZQWRJHWKHULQDQXSVWDQGLQJVHDPRIWHQ
UHIHUUHGWRDVDSUD\HUVHDP



/DSRYHUXQGHUVHDP

2QDVWDQGDUGZHOGHGVHDPRQHVLGHRIWKHSDQHOLV
ODSSHGXQGHUDQGWKHRWKHUVLGHLVODSSHGRYHU1RWHWKDW
WKLVSURGXFHGDQRYHUODSRIWZLFHWKHVSHFLILHGVHDP
ZLGWKDVWKHVHDPZLGWKLVVSHFLILHGIRUHDFKSDQHO

,OOXVWUDWHGLVDVHWRISDQHOWKDWKDYHULJKWKDQGODSRYHU
DQGOHIWKDQGODSXQGHUVHDPV7KHJXLGHOLQHVKRZVZKHUHWKHDGMDFHQWSDQHOHGJHVKRXOG

EHGXULQJDVVHPEO\

1RWH:KHQWKHVHDPVDUHUXQQLQJKRUL]RQWDOO\LQIRULQVWDQFHDEDUUHOYDXOWVHFWLRQLWLV
JRRGSUDFWLFHWRHQVXUHWKHODSRYHUSDQHOLVKLJKHURQWKHVWUXFWXUHWKDQWKHODSXQGHU
SDQHOOLNHWLOHVRQDURRI7KLVZLOODYRLGWKHZHOGEHLQJH[SRVHGWRUDLQZDWHUDQGKHOSWR

DYRLGZDWHUDQGGLUWWUDSSLQJZKLFKFDQOHDGWRIXQJDOJURZWK

&DEOHSRFNHWVHDP




7KLVLVWKHVHDPXVHGWRPDNHDFDEOHSRFNHW7KHHGJHLVWXUQHGEDFNXQWLOLWPHHWVWKH
JXLGHOLQH

$OOWKHDERYHVHDPW\SHVJXLGHOLQHVVOLWVDQGDOLJQPHQWPDUNVDUHVXSSRUWHGLQ
03DQHO$QGWKHUHLVDOLEUDU\RIVHDPW\SHVWKDW\RXFDQEXLOGXSWRVXLW\RXUFRPSDQLHV
SURGXFWLRQSUDFWLFHV




6WDPSLQJ

,WLVFRPPRQWRVWDPSWKHSDQHOZLWKDXQLTXHQDPHWRDVVLVWLQSDQHODVVHPEO\


$OVRLWLVJRRGSUDFWLFHWRGUDZDIL[HGOHQJWKOLQHRQWKHSDQHOWKDWFDQEHSK\VLFDOO\
FKHFNHGRQWKHILQLVKHGSDQHOWRJXDUGDJDLQVWDFFLGHQWDOVFDOLQJRIWKHSDQHO7KLVIL[HG
OHQJWKOLQHLVDOVRXVHGWRGHWHUPLQHWKHLQWHQGHGZDUSGLUHFWLRQRIWKHSDQHO

03DQHOVXSSRUWVVWDPSLQJDQGIL[HGOHQJWKZDUSOLQHV


3DQHO2XWSXW

8VXDOO\SDQHOVDUHH[SRUWHGWRG[IIRUPDWEHIRUHEHLQJVHQWWRDFXWWHU7KHXVHRIOD\HUVLQ
WKHG[IDOORZVVRPHFXUYHVWREHFXWVRPHWRGUDZQRXWVRPHLJQRUHG

$QLPSRUWDQWLVVXHLVWRHQVXUHWKDWWKHLQWHQGHGZDUSGLUHFWLRQRIWKHSDQHOLVPDLQWDLQHG
VRWKDWWKHZDUSWKUHDGVRQWKHUROOOLHSDUDOOHOWRWKHZDUSGLUHFWLRQRQWKHSDQHO

:LWK03DQHO\RXFDQVSHFLI\WKHOD\HUQDPHVIRUFXWWLQJSORWWLQJHWFVRWKDWWKHRXWSXW
FDQLQWHUIDFHZLWKDQ\FXWWHU



$OWHUQDWLYHRXWSXWPHWKRGV

$OWKRXJKWKHHDVLHVWRXWSXWPHWKRGLVWRFXWGLUHFWO\IURPWKHG[IWRWKHIDEULFRUSORWWRD
SDSHUDQGFXWDURXQGLQVRPHVLWXDWLRQVDFXWWHUSORWWHUZLOOQRWEHDYDLODEOH7KHUHDUH
WZRPHWKRGVWKDWFDQEHXVHGWRGHILQHSDQHOVZLWKRXWDFXWWHU

 ;<FRRUGLQDWHVRIHDFKQRGHRQWKHSDQHODOORZWKHSDQHOWREHGUDZQRXWRQD
FXWWLQJWDEOHXVLQJWDSHPHDVXUHVDQG7VTXDUHV1RUPDOO\WKHERWWRPOHIWFRUQHURI
HDFKSDQHOLVUHJDUGHGDVDQGWKHRWKHUQRGHVUHIHUHQFHGIURPWKDW
 (DFKSDQHOHGJHFDQEHGHILQHGDVDFXUYHSDVVLQJWKURXJK
DIHZSRLQWVDQGWKHSDQHOFRUQHUVFDQEHGHILQHGE\
VWUDLJKWHGJHOHQJWKVDQGWULDQJXODWLRQ:LWKZHOOVKDSHG
SDQHOVWKHSDQHOHGJHVKDSHLVVLPLODUWRDQDUFVRHYHQD
VLQJOHPLGSRLQWIRUWKHFXUYHWRSDVVWKURXJKPD\GHILQH
WKHSDQHOZHOOHQRXJK7KLVDOORZVWKHSDQHOWREHGUDZQ
RXWRQWKHFXWWLQJWDEOHXVLQJDWDSHPHDVXUHDQGDVOLJKWO\
EHQG\ZRRGHQVWUDLJKWHGJHWKDWLVIRUFHGWROLHRQWKHHGJHSRLQWV$QLOOXVWUDWLRQ
RIDVNHOHWRQSDQHOLVVKRZQ


03DQHOZLOOSURGXFHERWKRIWKHVHDOWHUQDWLYHSDQHORXWSXWV
7KHVNHOHWRQSDQHOLVDOVRXVHGIRUTXDOLW\DVVXUDQFHSDQHOFKHFNLQJ

1HVWLQJ

,QYDULRXVIDEULFLQGXVWULHVWKHXVHRIDXWRPDWLFQHVWLQJKDVUHVXOWHGLQVLJQLILFDQWIDEULF
XVHVDYLQJV7KHVHVDYLQJVDUHQRWVRHDVLO\DYDLODEOHLQWHQVLOHVWUXFWXUHVIRUVHYHUDO
UHDVRQV

x
7KHSDQHOVDUHXVXDOO\GHVLJQHGZLWKWKHUROOZLGWKLQPLQGVR\RXFDQ
WILWVHYHUDO
SDQHOVVLGHE\VLGHRUXVHWKHRIIFXWVIRUDQRWKHUSDQHO

x
<RXZDQWWRNHHSWKHZDUSGLUHFWLRQSUHWW\ZHOOWKHVDPHDVGHVLJQHGVR\RXFDQ
W
DOORZWKHQHVWLQJSURJUDPWRURWDWHWKHSDQHOVWRWKHILQGDEHVWILW3RVVLEO\\RX
FRXOGDOORZDURWDWLRQRIGHJUHHVRUVR

x
7KHSDQHOVWHQGWREHHLWKHUUHFWDQJXODURIWULDQJXODULQVKDSHERWKRIZKLFKDUH
HDV\WRQHVWE\H\HRQWKHUROO

+RZHYHULPSURYHGQHVWLQJDOJRULWKPVDQGWKHEHQHILWVRIVDYLQJHYHQDVPDOOOHQJWKRQ
WKHUROORIDQH[SHQVLYHIDEULFOHDGWRQHVWLQJKDYLQJPRUHRIDSODFHLQWHQVLOHVWUXFWXUH
GHVLJQ


03DQHOKDVDEDVLFSDQHORUJDQL]HUEXLOWLQWKDWIDOOVVRPHZD\VKRUWRIQHVWLQJ%XWLW
FDQEHXVHGWRILQGDQRSWLPXPDUUDQJHPHQWRISDQHOVRQDUROO

$SSHQGLFHV

7\SLFDOORDGVRQDWHQVLOHVWUXFWXUH

7KHUHDOOLIHORDGLQJRQDWHQVLOHVWUXFWXUHIURPZLQGDQGVQRZGHSHQGVRQWKH
GLVWULEXWLRQSDWWHUQRIWKHSUHVVXUHIRUZLQGDQGWKHGLVWULEXWLRQRIWKHZHLJKWIRUVQRZ

1RWHWKDWWKHORDGLQJIURPIDEULFVHOIZHLJKWLVXVXDOO\LQVLJQLILFDQWFRPSDUHGWRZLQG
DQGVQRZ

%XWLWLVXVHIXOWRJHWDURXJKLGHDRIWKHORDGVWKDWFRXOGEHJHQHUDWHGIURPVD\D
PSKZLQGDQGDPHWHU\DUGGHSWKRIVQRZ

7KHSUHVVXUHFDXVHGE\DZLQGEORZLQJRYHUDVXUIDFHLVJLYHQE\

3   VSHHGA &SSUHVVXUHLQQPAVSHHGLQPV

7KHXQNQRZQKHUHLV&SWKHFRHIILFLHQWRISUHVVXUH$LUFUDIWZLQJVGHOLEHUDWHO\GHVLJQHG
WRJHQHUDWHOLIWFDQREWDLQRYHUDOO&SYDOXHVDVKLJKDVVRDJXHVVYDOXHIRUDFXUYHG
WHQVLOHVWUXFWXUHPLJKWEH&S 

:LWKWKLVDSSUR[LPDWLRQZHJHWDQXSOLIWSUHVVXUHIURPDPSKZLQGRI.QPA
.QPA .JIPA OEVLQFKA


7KHSUHVVXUHDWRWKHUZLQGVSHHGVFDQEHREWDLQHGE\VTXDUHVFDOLQJ

6RDWPSKWKHSUHVVXUHZRXOGEHWLPHVWKHPSKSUHVVXUH
$QGDWPSKWKHSUHVVXUHZRXOGEHRIWKHPSKSUHVVXUH

$VLPLODUURXJKFDOFXODWLRQZLWKVQRZJLYHVDERXWWKHVDPHORDGIURPDPHWHU\DUGRI
VQRZEXWGRZQZDUGRIFRXUVH

)DEULFVWUHVVVSHFLILFDWLRQ

6WUHVVLQDIDEULFLVXVXDOO\UHIHUUHGWRDVIRUFHOHQJWKLH.JIPHWHU.QPHWHU/EI
LQFK7KLVGHOLEHUDWHO\LJQRUHVWKHWKLFNQHVVRIWKHPDWHULDO

$QRIWHQTXRWHGYDOXHLVWKHEUHDNLQJVWUHVVRUXOWLPDWHWHQVLOHVWUHQJWKLQWKHZDUS
GLUHFWLRQ

$VDQH[DPSOHDFRPPRQO\XVHGDUFKLWHFWXUDOIDEULFKDVDEUHDNLQJVWUHVVRI.QP

.QP .JIP
OEILQFKDSSUR[LPDWHO\

<RXZRXOGQWXVHWKHIDEULFDWWKLVVWUHVVDVWKHUHZRXOGEHQRUHVHUYHPDUJLQQRDJLQJ
DOORZDQFHQRWHPSHUDWXUHDOORZDQFHHWF$ORZHUILJXUHVXFKDVRURI
EUHDNLQJVWUHVVPLJKWEHVXLWDEOHDVDZRUNLQJVWUHVVOLPLW8VLQJIRUWKLVFRPPRQ

IDEULFJLYHVXV

:RUNLQJVWUHVVOLPLW  NQP
NQP .JIP OEILQFK

6WUHVVHVWLPDWLRQDQGGHWHUPLQDWLRQRIUHTXLUHGSUHVWUHVV

7KHEDVLFPDWKVIRUHVWLPDWLQJWKHVWUHVVLVEDVHGRQDF\OLQGHU

7HPSRUDULO\UHJDUGDVHFWLRQRIDWHQVLOHVWUXFWXUHDVDF\OLQGHUVXEMHFWWRDSUHVVXUH3

7KHFLUFXPIHUHQWLDOVWUHVVLQWKHIDEULF6GXHWRWKHSUHVVXUH3LVJLYHQ
E\

6 3 5

7KLVZLOOZRUNLQDQ\FRQVLVWHQWVHWRIXQLWV

,I\RXUSUHVVXUHLVLQNJIPHWHUADQGWKHUDGLXVLVLQPHWHUVWKHQWKH
VWUHVVLVLQNJIP
,I\RXUSUHVVXUHLVLQOEILQFKADQGWKHUDGLXVLVLQLQFKHVWKHQWKHVWUHVVLVLQOEILQFK

,QDWHQVLOHVWUXFWXUHZHZLOOKDYHWZRUDGLLRIFXUYDWXUHPDNLQJDVDGGOH
VKDSH7KLVLVORFDOO\OLNHKDYLQJWZRF\OLQGHUVDWULJKWDQJOHVWRHDFKRWKHU
,QWKHVLPSOHVWFDVHWKHWZRF\OLQGHUVKDYHVLPLODUUDGLL7KHDSSOLHGSUHVVXUH
ZLOOLQFUHDVHWKHSUHVWUHVVLQRQHF\OLQGHUDQGGHFUHDVHLWLQWKHRWKHU7KH
VWUHVVFKDQJHGXHWRDQDSSOLHGORDGZLOOEHKDOIRIWKDWFDOFXODWHGIRUD
F\OLQGHUDVWKHUHDUHWZRF\OLQGHUV

2ISDUWLFXODULQWHUHVWLVWKHVLWXDWLRQZKHUHWKHDSSOLHGSUHVVXUHKDVUHGXFHG
WKHSUHVWUHVVLQRQHF\OLQGHUWR]HUR7KLVLVWKHSRLQWZKHUHWKHVWUXFWXUH
WUDQVLWLRQVIURPDWHQVLOHVWUXFWXUHWRDQLQIODWHGVWUXFWXUHDQGPD\EH
DFFRPSDQLHGE\ODUJHUGLVSODFHPHQWV

,QWKLVVLWXDWLRQWKHSUHVVXUHLVRQO\EHLQJUHVLVWHGE\RQHRIWKHF\OLQGHUVVRWKHVWUHVVLQ
WKDWF\OLQGHUFDQEHREWDLQHGHDVLO\7KLVLVLJQRULQJDQ\FKDQJHLQVKDSHGXHWRIDEULF
VWUHWFKLQJXQGHUORDGZKLFKPD\EHVLJQLILFDQW2XUH[FXVHLVWKDWZHDUHRQO\PDNLQJD
URXJKHVWLPDWH

7KLVLPSOLHVWKDWDUHDVRQDEOHYDOXHIRUWKHIDEULFSUHVWUHVVLVKDOIRIWKHVWUHVVLQFUHDVH
FDOFXODWHGIURPDVLQJOHF\OLQGHU7KHQXQGHUORDGRQHF\OLQGHUZLOOLQFUHDVHLWVVWUHVVWR
WKHIXOOYDOXHZKLOVWWKHRWKHUZLOOJRWR]HURVWUHVV

6RZHFDQHVWLPDWHWKHVWUHVVWKDWZLOOEHSURGXFHGLQDIDEULFZKHQWKHIDEULFLVFORVHWR
WKHFRQGLWLRQZKHUHWKHVWUHVVLQRQHGLUHFWLRQKDVUHGXFHGWR]HURE\XVLQJWKHVLPSOH
F\OLQGHUHTXDWLRQ



0D[LPXPFXUYDWXUHDOORZDEOHWRNHHSIDEULFVWUHVVHVLQERXQGV


6LQFHZHFDQUHODWHVWUHVVDQGUDGLXVRIFXUYDWXUHZHFDQXVHWKHFRQFHSWRIDPD[LPXP
UDGLXVRIFXUYDWXUHIRUDSDUWLFXODUIDEULFDVDQLQGLFDWLRQRIZKHWKHUWKHVWUHVVXQGHUORDG
ZLOOVWD\ZLWKLQWKHIDEULFVOLPLWV

:HFDQVSHFLI\WKHPD[LPXPZRUNLQJVWUHVVIRUWKHIDEULFDQGWKHDSSOLHGORDGDQGIRU

WKHVLWXDWLRQZHUHVWUXFWXUDOO\WKHPHPEUDQHKDVEHFRPHDVLQJOHF\OLQGHUZHFDQ
FDOFXODWHWKHPD[LPXPUDGLXVSRVVLEOHRQWKHIDEULFLQWKHSULQFLSOHGLUHFWLRQWKDWLV

2QFHZHKDYHFDOFXODWHGWKHPD[UDGLXVZHFDQXVHLWDVDJXLGHOLQHIRUWKDWIDEULFWR
GHWHUPLQHZKHWKHUDSDUWLFXODUGHVLJQLVIHDVLEOHXVLQJWKDWIDEULF

)RUDFRPPRQDUFKLWHFWXUDOIDEULFZHHVWDEOLVKHGDPD[ZRUNLQJVWUHVVRINQP
NQP .JIP OEILQFK


)RUPSKZLQGVXFWLRQZHHVWDEOLVKHGDSUHVVXUHRI.QPA
.QPA .JIPA OEVLQFKA

8VLQJ6 3 5ZHREWDLQWKHPD[LPXPUDGLXVIRUWKLVFRPPRQO\XVHGIDEULFDV
PHWHUVRULQFKHV

7KLVLVDSUHWW\YDJXHFDOFXODWLRQEXWLWVXSSOLHVDEHQFKPDUNILJXUHWKDWQHZGHVLJQ
SURSRVDOVFDQEHFKHFNHGDJDLQVW

0D[UDGLXVYDOXHVIRUGLIIHUHQWIDEULFVFDQEHUHILQHGZLWK\RXUFRPSDQ\VH[SHULHQFH
DQGXVHDQGFDQSURYLGHDVLPSOHUHDOLW\FKHFNRQWKHIHDVLELOLW\RIDJLYHQVWUXFWXUH




7HQVLRQLQFDEOHV

:LWKDIDEULFF\OLQGHUZHHVWDEOLVKHGWKHVLPSOHHTXDWLRQOLQNLQJWKH6WUHVV3UHVVXUH
DQG5DGLXV

6 3 5

5HGXFLQJWKHHTXDWLRQE\RQHGLPHQVLRQJLYHVXVDVLPSOH
HTXDWLRQOLQNLQJWKHFDEOH7HQVLRQFDWHQDU\5DGLXVDQGIDEULF
6WUHVV

7 6 5

7KLVZLOOZRUNLQDQ\FRQVLVWHQWVHWRIXQLWV

,IWKHIDEULFVWUHVVLVLQNJIPHWHUDQGWKHUDGLXVLVLQPHWHUVWKHQWKHWHQVLRQLVLQNJI
,IWKHIDEULFVWUHVVLVLQOEILQFKDQGWKHUDGLXVLVLQLQFKHVWKHQWKHWHQVLRQLVLQOEI




([DPSOHRIFDOFXODWLQJFRPSHQVDWLRQ

/HWVVD\\RXKDYHWHQVLOHVWUXFWXUHGHVLJQHGZLWKDZHIWZDUSVWUHVVUDWLRRI


6SHFLI\WKHDYHUDJHZDUSSUHVWUHVVWKDWLVVXLWDEOHIRUWKHIDEULFVD\.JI0
6RWKHDYHUDJHZHIWSUHVWUHVVLVNJI0

/RRNDWWKHIROORZLQJJUDSKZKLFKVKRZVWKHELD[LDOH[WHQVLRQDJDLQVWVWUHVVIRUDQ
H[DPSOHIDEULF



)RUWKHZDUS.J0VWUHVVQHHGVVWUDLQ
)RUWKHZHIW.J0VWUHVVQHHGVVWUDLQ

$VVXPLQJWKDWWKHSDQHOZDUSLVLQOLQHZLWKWKHPHVKZDUS
3DQHOZDUSFRPSHQVDWLRQ 
3DQHOZHIWFRPSHQVDWLRQ




&RQHWHQWVWUHVVYDULDWLRQ

6D\ZHKDYHDVLPSOHFRQHWHQWZLWKDFLUFXODUWRSULQJDQGFLUFXODUEDVHDVVKRZQLQWKH
LOOXVWUDWLRQ

,IWKHPRGHOVKDSHLVFRQLFDOWKHQLWLVHDV\WRFDOFXODWHWKHIRUFHRQ
WKHWRSULQJDQGWKHERWWRPULQJIURPWKHIDEULFVWUHVVMXVWE\
VXPPLQJWKHYHUWLFDOFRPSRQHQWRIWKHVWUHVVDURXQGWKHULQJ
SHULPHWHU

,QWKHVWDWLFFDVHWKHVHWZRIRUFHVKDYHWREDODQFHRXWZLWKRQHSXOOLQJXSRQHSXOOLQJ
GRZQ6RWKDWJLYHVXVWKHVLPSOHUHODWLRQEHWZHHQWKHWRSDQGERWWRPVWUHVVHV6WDQG6E
DQGWKHWRSDQGERWWRPULQJUDGLXVHV5WDQG5ERI

6W6E 5E5W

,QUHDOLW\WKHFRQHWHQWVKDSHLVPRUHQHFNHGWKDQWKLVDVVKRZQLQ
WKLVGUDZLQJ7KLVQHFNLQJLQFUHDVHVWKHIDEULFDQJOHDWWKHWRSULQJ
DQGGHFUHDVHVLWDWWKHERWWRPULQJZKLFKORZHUVWKHVWUHVVYDULDWLRQ
UHTXLUHGIRUHTXLOLEULXP
)RUVRPHFRPELQDWLRQVRIWRSULQJUDGLXVERWWRPULQJUDGLXVDQGWRSULQJHOHYDWLRQLWLV
SRVVLEOHWRQHFNWKHIDEULFVXIILFLHQWO\WRREWDLQHTXLOLEULXPZLWKHTXDOWRSDQGERWWRPIDEULF

VWUHVVEXWRIWHQWKLVZLOOUHVXOWLQDPRUHQHFNHGVKDSHWKDQLVDFFHSWDEOH

6RWKHVWUHVVYDULDWLRQLQDUHDOWHQVLOHVWUXFWXUHLVVRPHZKHUHEHWZHHQWKHUDWLRVKRZQDERYH
DQG*RLQJKDOIZD\JLYHV


6W6E 5E5W 

2QDFRQHWHQWZKHUHWKHERWWRPERXQGDU\LVQRWFLUFXODUIRUWKLVYHU\URXJKHVWLPDWHZH
FDQVSHFLI\DQHTXLYDOHQWFLUFXODUERXQGDU\LQVWHDG

8QLWV&RQYHUVLRQ

+HUHDUHVRPHFRQYHUVLRQIDFWRUVWRFKDQJHEHWZHHQWKHXQLWVFRPPRQO\IRXQGZKHQ
ZRUNLQJZLWKVWUXFWXUDOIDEULFV7KHFRQYHUVLRQVKDYHEHHQURXQGHGWRVLJQLILFDQWILJXUHV


7HQVLRQ 
N1 
.JI
/EI


/LQHDO6WUHVV)DEULF6WUHVV
N1P 
.JIP
/EILQFK 
 /EIIRRW


3UHVVXUH
N1PA
.JIPA
/EILQFKASVL  /EIIRRWA

*ORVVDU\

:DUS:HIW)LOO:RRI

5HIHUWRWKHWKUHDGGLUHFWLRQVLQDIDEULF7KHZDUSLVWKHORQJGLUHFWLRQRQWKHIDEULFLW
VWKH
WKUHDGVWKDWZDUSRUZUDSDURXQGWKHUROOWKDWWKHIDEULFLVPDGHRQ

:HIWILOORUZRRIUHIHUWRWKHWKUHDGVWKDWUXQDFURVVWKHIDEULFXVXDOO\FDUULHGRQDVKXWWOH
GXULQJPDQXIDFWXUH



&RQFDYH&RQYH[

5HIHUWRWKHGLUHFWLRQRIWKHEXOJHDFXUYHPDNHV&RQFDYHLVDEXOJHLQOLNHJRLQJLQWRD
VKDOORZFDYH
&RQYH[LVEXOJLQJRXW




5LGJH+LS(DYHV

5HIHUWRSDUWVRIDWHQWDQGDUHXVHGZKHQGHVLJQLQJFRQHWHQWVRUSROHWHQWV

5LGJHLVWKHOLQHEHWZHHQWZRKLJKSRLQWVRUSROHV
+LSLVWKHOLQHIURPDKLJKSRLQWWRDFRUQHU
(DYHVDUHWKHORZSRLQWVDURXQGWKHWHQWERXQGDULHV