You are on page 1of 31



7:20$5.648(67,216:,7+$16:(56
81,7
(/(&7520$*1(7,&5$',$7,21$1'$17(11$)81'$0(17$/6


 :KDWGR\RXXQGHUVWDQGE\UHWDUGHGFXUUHQW"
6LQFHWKHVKRUWHOHFWULFGLSROHLVVRVKRUWWKHFXUUHQWZKLFKLVIORZLQJ
WKURXJK WKH GLSROH LV DVVXPHG WR EH FRQVWDQW WKURXJKRXW LWV OHQJWK 7KH
HIIHFWRIWKLVFXUUHQWLVQRWIHOWLQVWDQWDQHRXVDWDGLVWDQFHSRLQWRQO\DIWHUDQ
LQWHUYDO HTXDO WR WKH WLPH UHTXLUHG IRU WKH ZDYH WR SURSDJDWH RYHU WKH
GLVWDQFHULVFDOOHGWKHUHWDUGDWLRQWLPH7KHUHWDUGHGFXUUHQWLVJLYHQDV

       

:KHUH U'LVWDQFHWUDYHOOHG
FYHORFLW\RISURSDJDWLRQ
 

 'HILQHLQGXFWLRQILHOG
7KH LQGXFWLRQ ILHOG ZLOO SUHGRPLQDWH DW SRLQWV FORVH WR WKH FXUUHQW
HOHPHQWZKHUH WKH GLVWDQFH IURP WKH FHQWHU RI WKH GLSROH WR WKH SDUWLFXODU
SRLQW LV OHVV 7KLV ILHOG LV PRUH HIIHFWLYH LQ WKH YLFLQLW\ RI WKH FXUUHQW
HOHPHQW RQO\ ,W UHSUHVHQWV WKH HQHUJ\ VWRUHG LQ WKH PDJQHWLF ILHOG
VXUURXQGLQJ WKH FXUUHQW HOHPHQW RU FRQGXFWRU 7KLV ILHOG LV DOVR NQRZQ DV
QHDUILHOG

 'HILQH5DGLDWLRQILHOG
7KH UDGLDWLRQ ILHOG ZLOO EH SURGXFHG DW D ODUJHU GLVWDQFH IURP WKH
FXUUHQW HOHPHQW ZKHUH WKH GLVWDQFH IURP WKH FHQWHU RI WKH GLSROH WR WKH
SDUWLFXODUSRLQWLVYHU\ODUJH,WLVDOVRFDOOHGDVGLVWDQWILHOGRUIDUILHOG

 $W ZKDW GLVWDQFH IURP WKH GLSROH LV WKH LQGXFWLRQ ILHOG HTXDO WR WKH
UDGLDWLRQILHOG"
$V WKH GLVWDQFH IURP WKH FXUUHQW HOHPHQW RU WKH VKRUW GLSROH
LQFUHDVHVERWK LQGXFWLRQ DQG UDGLDWLRQ ILHOGV HPHUJH DQG VWDUW GHFUHDVLQJ
+RZHYHUDGLVWDQFHUHDFKHVIURPWKHFRQGXFWRUDWZKLFKERWKWKHLQGXFWLRQ
DQGUDGLDWLRQILHOGEHFRPHVHTXDODQGWKHSDUWLFXODUGLVWDQFHGHSHQGVXSRQ
WKH ZDYHOHQJWK 7KH WZR ILHOGV ZLOO WKXV KDYH HTXDO DPSOLWXGH DW WKDW
SDUWLFXODUGLVWDQFH7KLVGLVWDQFHLVJLYHQE\U 




 'HILQH5DGLDWLRQ5HVLVWDQFH
,WLVGHILQHGDVWKHILFWLWLRXVUHVLVWDQFHZKLFKZKHQLQVHUWHGLQVHULHV
ZLWK WKH DQWHQQD ZLOO FRQVXPH WKH VDPH DPRXQW RI SRZHU DV LW LV DFWXDOO\
UDGLDWHG 7KH DQWHQQD DSSHDUV WR WKH WUDQVPLVVLRQ OLQH DV D UHVLVWLYH
FRPSRQHQWDQGWKLVLVNQRZQDVWKHUDGLDWLRQUHVLVWDQFH

 :KDWLVFDSDFLWDQFHKDW"
7KHFDSDFLWDQFHKDWLVFLUFXODULQVKDSHZLWKPDVWDWWKHFHQWHURIWKH
FLUFOH 7KHUH DUH QXPEHU RI KRUL]RQWDO FRQGXFWLQJ ZLUHV ZLWK WKHLU HQGV
MRLQHGWRJHWKHUE\PHDQVRIDULQJ7KHFDSDFLWDQFHKDWLVXVHGWRLQFUHDVH
WKHHOHFWULFDOOHQJWKRIORZIUHTXHQF\DQWHQQDV

 'HILQHWRSORDGLQJ
7RS ORDGLQJ LV D PHWKRG WR LQFUHDVH WKH HIIHFWLYH FDSDFLWDQFH DW WKH
WRSRIWKHDQWHQQD7KLVLVDFFRPSOLVKHGE\PRXQWLQJRQHRUPRUHKRUL]RQWDO
FRQGXFWRUVDWWKHWRSRIWKHDQWHQQD

 'HILQHUHWDUGDWLRQWLPH
,WLVWKHWLPHUHTXLUHGIRUWKHZDYHWRSURSDJDWHRYHUWKHGLVWDQFHU,W
LVJLYHQE\UFZKHUHFLVWKHYHORFLW\RIOLJKWZKLFKLVJLYHQDV[PV

 :KDWLVPDJQHWLFYHFWRUSRWHQWLDO"

7KH VRXUFH IRU PDJQHWLF YHFWRU SRWHQWLDO LV FXUUHQW HOHPHQW 7KH
FXUUHQWKDYLQJERWKPDJQLWXGHDQGGLUHFWLRQ+HQFHWKHSRWHQWLDOLQWKHFDVH
RIPDJQHWLFILHOGLVPDJQHWLFYHFWRUSRWHQWLDO
7KHH[SUHVVLRQVIRUPDJQHWLFYHFWRUSRWHQWLDO $ LVJLYHQDV




:KHUH -FXUUHQW'HQVLW\U'LVWDQFH

 'HILQHHOHFWULFVFDODUSRWHQWLDO
7KHVRXUFHIRUSURGXFLQJDQHOHFWULFSRWHQWLDOLVFKDUJH7KHFKDUJHLV
KDYLQJ PDJQLWXGH RQO\ +HQFH WKH SRWHQWLDO LQ WKH FDVH RI HOHFWULF
FKDUJHLVHOHFWULFVFDODUSRWHQWLDO( 98QLWLVZHEHUP




 :ULWH GRZQ WKH H[SUHVVLRQV IRU PDJQHWLF YHFWRU SRWHQWLDO XVLQJ


WKUHHVWDQGDUGFXUUHQWGLVWULEXWLRQV



L 9ROXPHFXUUHQW 



LL /LQHFXUUHQW 



LLL 6XUIDFHFXUUHQW 

 :KDWLVUHWDUGHGFXUUHQW"
6LQFHFXUUHQWIORZLQJWKURXJKDVKRUWGLSROHLVDVVXPHGWREHFRQVWDQW
WKURXJKRXWLWVOHQJWKWKHHIIHFWRIWKLVFXUUHQWLVQRWIHOWLQVWDQWDQHRXVO\DW
D'LVWDQW SRLQW 3 EXW RQO\ DIWHU DQ LQWHUYDO HTXDO WR WKH WLPH UHTXLUHG IRU
WKHZDYH WR SURSDJDWH RYHU D GLVWDQFH U 7KLV FXUUHQW LV FDOOHG DV


UHWDUGHGFXUUHQW([SUHVVLRQVIRUUHWDUGHGFXUUHQW 

:KHUHUFUHWDUGDWLRQWLPH


 6WDWHUHFLSURFLW\SULQFLSOH
,I D FXUUHQW , DWWKHWHUPLQDOVRI DQWHQQDQRLQGXFHV DQ HPI ( DW
WKHRSHQWHUPLQDOVRIDQWHQQDQRDQGDFXUUHQW,DWWKHWHUPLQDOVRIDQWHQQD
QR LQGXFHV DQ HPI ( DW WKH RSHQ WHUPLQDOV RI DQWHQQD QRWKHQ ( 
(SURYLGHG, ,

 'HILQH5DGLDWLRQSDWWHUQ
$QDQWHQQDUDGLDWLRQSDWWHUQLVGHILQHGDVDPDWKHPDWLFDOIXQFWLRQRU
DJUDSKLFDO UHSUHVHQWDWLRQ RI WKH UDGLDWLRQ SURSHUWLHV RI WKH DQWHQQDV
DIXQFWLRQ RI VSDFH FRRUGLQDWHV7KH UDGLDWLRQ SURSHUWLHV LQFOXGH SRZHU IOX[
GHQVLW\UDGLDWLRQLQWHQVLW\)LHOGVWUHQJWKGLUHFWLYLW\SKDVHRUSRODUL]DWLRQ

 


 :KDWDUHWKHWZRW\SHVRIUDGLDWLRQSDWWHUQ
 )LHOGSDWWHUQ

,IWKHUDGLDWLRQIURPWKHDQWHQQDLVH[SUHVVHGLQWHUPVRIWKHILHOG
6WUHQJWK HLWKHU ( RU +  WKHQ WKH UDGLDWLRQ SDWWHUQ LV FDOOHG DV
ILHOGSDWWHUQ

 3RZHUSDWWHUQ

,I WKH UDGLDWLRQ IURP WKH DQWHQQD LV H[SUHVVHG LQ WHUPV RI SRZHU SHU
XQLWDUHDWKHQWKHUHVXOWDQWSDWWHUQLVSRZHUSDWWHUQ

 'HILQH,QGXFWLRQILHOG QHDUILHOG 
7KH ILHOG ZKLFK SUHGRPLQDWHV DW WKH SRLQWV FORVHU WR WKH FXUUHQW
HOHPHQW ZKHUH U LV VPDOO LV NQRZQ DV LQGXFWLRQ ILHOG 7KH QHDU ILHOG LV
LQYHUVHO\SURSRUWLRQDOWRVTXDUHRIWKHGLVWDQFH U 

 'HILQHDQDQWHQQD
$QWHQQDLVDWUDQVLWLRQGHYLFHRUDWUDQVGXFHUEHWZHHQDJXLGHGZDYH
DQGDIUHHVSDFHZDYHRUYLFHYHUVD$QWHQQDLVDOVRVDLGWREHDQLPSHGDQFH
WUDQVIRUPLQJGHYLFH

 :KDWLVPHDQWE\UDGLDWLRQSDWWHUQ"
5DGLDWLRQ SDWWHUQ LV WKH UHODWLYH GLVWULEXWLRQ RI UDGLDWHG SRZHU DV D
IXQFWLRQ RI GLVWDQFH LQ VSDFH ,W LV D JUDSK ZKLFK VKRZV WKH YDULDWLRQ LQ
DFWXDOILHOGVWUHQJWKRIWKH(0ZDYHDWDOOSRLQWVZKLFKDUHDWHTXDOGLVWDQFH
IURPWKHDQWHQQD7KHHQHUJ\UDGLDWHGLQDSDUWLFXODUGLUHFWLRQE\DQDQWHQQD
LVPHDVXUHGLQWHUPVRIILHOGVWUHQJWK

 'HILQH5DGLDWLRQLQWHQVLW\"
7KHSRZHUUDGLDWHGIURPDQDQWHQQDSHUXQLWVROLGDQJOHLVFDOOHGWKH
UDGLDWLRQ LQWHQVLW\ 8 ZDWWV SHU VWHUDGLDQ RU SHU VTXDUH GHJUHH  7KH
UDGLDWLRQLQWHQVLW\LVLQGHSHQGHQWRIGLVWDQFH

 'HILQH%HDPHIILFLHQF\"
7KH WRWDO EHDP DUHD $  FRQVLVWV RI WKH PDLQ EHDP DUHD 0  SOXV WKH
PLQRUOREHDUHD P 7KXV$ 0P7KHUDWLRRIWKHPDLQEHDPDUHDWR
WKHWRWDOEHDPDUHDLVFDOOHGEHDPHIILFLHQF\
%HDPHIILFLHQF\ 0 0$



 'HILQH'LUHFWLYLW\"
7KH GLUHFWLYLW\ RI DQ DQWHQQD LV HTXDO WR WKH UDWLR RI WKH PD[LPXP
SRZHUGHQVLW\3  PD[WRLWVDYHUDJHYDOXHRYHUDVSKHUHDVREVHUYHGLQWKH
IDUILHOGRIDQDQWHQQD

  ' 3  PD[3  DY'LUHFWLYLW\IURP3DWWHUQ


  ' $'LUHFWLYLW\IURPEHDPDUHD $ 


 :KDWLVPHDQWE\HIIHFWLYHKHLJKW"
7KH HIIHFWLYH KHLJKW K RI DQ DQWHQQD LV WKH SDUDPHWHU UHODWHG WR WKH
DSHUWXUH,WPD\EHGHILQHGDVWKHUDWLRRIWKHLQGXFHGYROWDJHWRWKHLQFLGHQW
ILHOGLH+ 9(

 :KDWDUHWKHILHOG]RQH"
7KHILHOGVDURXQGDQDQWHQQDD\EHGLYLGHGLQWRWZRSULQFLSDOUHJLRQV

   1HDUILHOG]RQH )UHVQHO]RQH 


)DUILHOG]RQH )UDXQKRIHU]RQH 

 :KDWLVPHDQWE\3RODUL]DWLRQ"
7KH SRODUL]DWLRQ RI WKH UDGLR ZDYH FDQ EH GHILQHG E\ GLUHFWLRQ LQ
ZKLFKWKHHOHFWULFYHFWRU(LVDOLJQHGGXULQJWKHSDVVDJHRIDWOHDVWRQHIXOO
F\FOH $OVRSRODUL]DWLRQ FDQ DOVR EH GHILQHG WKH SK\VLFDO RULHQWDWLRQ RI WKH
UDGLDWHGHOHFWURPDJQHWLFZDYHVLQVSDFH

 3RODUL]DWLRQFDQEHFODVVLILHGLQWRWKUHHW\SHV7KH\DUH

 (OOLSWLFDOSRODUL]DWLRQ
 FLUFXODUSRODUL]DWLRQ
 OLQHDUSRODUL]DWLRQ

 :KDWLVPHDQWE\IURQWWREDFNUDWLR"
,WLVGHILQHGDVWKHUDWLRRIWKHSRZHUUDGLDWHGLQGHVLUHGGLUHFWLRQWR
WKHSRZHUUDGLDWHGLQWKHRSSRVLWHGLUHFWLRQLH

   





 'HILQHDQWHQQDHIILFLHQF\
7KHHIILFLHQF\RIDQDQWHQQDLVGHILQHGDVWKHUDWLRRISRZHUUDGLDWHG
WRWKHWRWDOLQSXWSRZHUVXSSOLHGWRWKHDQWHQQD

    



 :KDWLVUDGLDWLRQUHVLVWDQFH"
7KH DQWHQQD LV D UDGLDWLQJ GHYLFH LQ ZKLFK SRZHU LV UDGLDWHG LQWR
VSDFHLQWKHIRUPRIHOHFWURPDJQHWLFZDYH

 :KDWLVPHDQWE\DQWHQQDEHDPZLGWK"
$QWHQQD EHDP ZLGWK LV D PHDVXUH RI GLUHFWLYLW\ RI DQ DQWHQQD
$QWHQQD EHDP ZLGWK LV DQ DQJXODU ZLGWK LQ GHJUHHV PHDVXUHG RQ WKH
UDGLDWLRQSDWWHUQ PDMRUOREH EHWZHHQSRLQWVZKHUHWKHUDGLDWHGSRZHUKDV
IDOOHQ WR KDOI LWV PD[LPXP YDOXH 7KLV LV FDOOHG DV EHDP ZLGWK EHWZHHQ
KDOISRZHUSRLQWVRUKDOISRZHUEHDPZLGWK +3%: 

 :KDWLVPHDQWE\$QWHQQD7HPSHUDWXUH"
7KHDQWHQQDWHPSHUDWXUH7$LVGHILQHGDVWKHWHPSHUDWXUHRIIDUILHOG
UHJLRQ RI VSDFH DQG QHDU VXUURXQGLQJV ZKLFK DUH FRXSOHG WR WKH DQWHQQD
WKURXJKUDGLDWLRQUHVLVWDQFH

 :KDWLVPHDQWE\LVRWURSLFUDGLDWRU"
$QLVRWURSLFUDGLDWRULVDILFWLWLRXVUDGLDWRUDQGLVGHILQHGDVDUDGLDWRU
ZKLFKUDGLDWHVILHOGVXQLIRUPO\LQDOOGLUHFWLRQV,WLVDOVRFDOOHGDVLVRWURSLF
VRXUFHRURPQLGLUHFWLRQDOUDGLDWRURUVLPSO\XQLSROH

 'HILQHJDLQ
7KH UDWLR RI PD[LPXP UDGLDWLRQ LQWHQVLW\ LQ JLYHQ GLUHFWLRQ WR WKH
PD[LPXPUDGLDWLRQLQWHQVLW\IURPDUHIHUHQFHDQWHQQDSURGXFHGLQWKHVDPH
GLUHFWLRQZLWKVDPHLQSXWSRZHULH

   








 'HILQHVHOILPSHGDQFH
6HOI LPSHGDQFH RI DQ DQWHQQD LV GHILQHG DV WKH UDWLR RI YROWDJH WR
FXUUHQWDWDSDLURIWHUPLQDOV

  
:KHUH  55DGLDWLRQ5HVLVWDQFH
;6HOI5HDFWDQFH

 'HILQHPXWXDOLPSHGDQFH
7KHSUHVHQFHRIQHDUE\DQWHQQDQRLQGXFHVDFXUUHQWLQWKHDQWHQQD
QR LQGLFDWHV WKDW SUHVHQFH RI DQWHQQD QR FKDQJHV WKH LPSHGDQFH RI WKH
DQWHQQD QR7KLV HIIHFW LV FDOOHG PXWXDO FRXSOLQJ DQG UHVXOWV LQ PXWXDO
LPSHGDQFH

 :KDWLVPHDQWE\FURVVILHOG"
1RUPDOO\WKHHOHFWULFILHOG(LVSHUSHQGLFXODUWRWKHGLUHFWLRQRIZDYH
SURSDJDWLRQ ,Q VRPH VLWXDWLRQ WKH HOHFWULF ILHOG ( LV SDUDOOHO WR WKH ZDYH
SURSDJDWLRQWKDWFRQGLWLRQLVFDOOHG&URVVILHOG

 'HILQHD[LDOUDWLR
7KHUDWLRRIWKHPDMRUWRWKHPLQRUD[HVRIWKHSRODUL]DWLRQHOOLSVHLV
FDOOHGWKH$[LDO5DWLR $5 

 :KDWLVPHDQWE\%HDP$UHD"
7KH EHDP DUHD RU EHDP VROLG DQJOH RU :$RI DQ DQWHQQD LV JLYHQ E\ WKH
QRUPDOL]HGSRZHUSDWWHUQRYHUDVSKHUH















81,7
:,5($17(11$6$1'$17(11$$55$<6

 :KDWLVD6KRUW'LSROH"
$ VKRUW GLSROH LV RQH LQ ZKLFK WKH ILHOG LV RVFLOODWLQJEHFDXVH RI WKH
RVFLOODWLQJ YROWDJH DQG FXUUHQW ,W LV FDOOHG VR EHFDXVH WKH OHQJWK RI WKH
GLSROHLVVKRUWDQGWKHFXUUHQWLVDOPRVWFRQVWDQWWKURXJKRXWWKHHQWLUHOHQJWK
RI WKH GLSROH ,W LV DOVR FDOOHG DV +HUW]LDQ 'LSROH ZKLFK LV D K\SRWKHWLFDO
DQWHQQD DQG LV GHILQHG DV D VKRUW LVRODWHG FRQGXFWRU FDUU\LQJ XQLIRUP
DOWHUQDWLQJFXUUHQW

 +RZUDGLDWLRQVDUHFUHDWHGIURPDVKRUW'LSROH"
7KHGLSROHKDVWZRHTXDOFKDUJHVRIRSSRVLWHVLJQRVFLOODWLQJXSDQG
GRZQLQDKDUPRQLFPRWLRQ7KHFKDUJHVZLOOPRYHWRZDUGVHDFKRWKHUDQG
HOHFWULFILOHGOLQHVZHUHFUHDWHG:KHQWKHFKDUJHVPHHWDWWKHPLGSRLQWWKH
ILHOG OLQHV FXW HDFK RWKHU DQG QHZ ILHOG DUH FUHDWHG 7KLV SURFHVV LV
VSRQWDQHRXVDQGVRPRUHILHOGVDUHFUHDWHGDURXQGWKHDQWHQQD7KLVLVKRZ
UDGLDWLRQVDUHREWDLQHGIURPDVKRUWGLSROH

 :K\DVKRUWGLSROHLVDOVRFDOOHGDQHOHPHQWDOGLSROH"
$VKRUWGLSROHWKDWGRHVKDYHDXQLIRUPFXUUHQWZLOOEHNQRZQDVWKH
HOHPHQWDOGLSROH6XFKDGLSROHZLOOJHQHUDOO\EHFRQVLGHUDEO\VKRUWHUWKDQ
WKH WHQWK ZDYHOHQJWK PD[LPXP VSHFLILHG IRU D VKRUW GLSROH (OHPHQWDO
GLSROH LV DOVR FDOOHG DV HOHPHQWDU\ GLSROH HOHPHQWDU\ GRXEOHWDQG KHUW]LDQ
GLSROH

 :KDWLVDQ,QILQLWHVLPDO'LSROH"
:KHQ WKH OHQJWK RI WKH VKRUW GLSROH LV YDQLVKLQJ VPDOO WKHQ VXFK D
GLSROH LV FDOOHG D LQILQLWHVLPDO GLSROH ,I GO EH WKH LQILQLWHVLPDOO\ VPDOO
OHQJWKDQG,EHWKHFXUUHQWWKHQ,GOLVFDOOHGDVWKHFXUUHQWHOHPHQW

 :K\DVKRUWGLSROHLVFDOOHGDQRVFLOODWLQJGLSROH"
$ VKRUW GLSROH LV LQLWLDOO\ LQ QHXWUDO FRQGLWLRQ DQG WKH PRPHQW D
FXUUHQW VWDUWV WR IORZ LQ RQH GLUHFWLRQ RQH KDOI RI WKH GLSROH UHTXLUH DQ
H[FHVV RI FKDUJH DQG WKH RWKHU D GHILFLW EHFDXVH D FXUUHQW LV D IORZ RI
HOHFWULFDOFKDUJH7KHQWKHUHZLOOEHDYROWDJHEHWZHHQWKHWZRKDOYHVRIWKH
GLSROH :KHQ WKH FXUUHQW FKDQJHV LWV GLUHFWLRQ WKLV FKDUJH XQEDODQFH ZLOO
FDXVH RVFLOODWLRQV +HQFH DQ RVFLOODWLQJ FXUUHQW ZLOO UHVXOW LQ DQ RVFLOODWLQJ
YROWDJH6LQFHLQVXFKGLSROHHOHFWULFFKDUJHRVFLOODWHVLW PD\EHFDOOHGDV
2VFLOODWLQJHOHFWULFGLSROH


 *LYHWKHH[SUHVVLRQIRUWKHHIIHFWLYHDSHUWXUHRIDVKRUWGLSROH
7KHHIIHFWLYHDSHUWXUHRIDVKRUWGLSROHLVJLYHQE\$H 

 :KDWLVDGLSROHDQWHQQD"
$GLSROHDQWHQQDPD\EHGHILQHGDVDV\PPHWULFDODQWHQQDLQZKLFK
WKHWZRHQGVDUHDWHTXDOSRWHQWLDOUHODWLYHWRWKHPLGSRLQW

 :KDWLVDKDOIZDYHGLSROH"
$KDOIZDYHDQWHQQDLVWKHIXQGDPHQWDOUDGLRDQWHQQDRIPHWDOURGRU
WXELQJ RU WKLQ ZLUH ZKLFK KDV D SK\VLFDO OHQJWK RI KDOI ZDYHOHQJWK LQ IUHH
VSDFHDWWKHIUHTXHQF\RIRSHUDWLRQ

 *LYHWKHH[SUHVVLRQIRUWKHHIIHFWLYHDSHUWXUHRID+DOIZDYH'LSROH
7KHHIIHFWLYHDSHUWXUHRIDKDOIZDYHGLSROHLVJLYHQE\$H 

 :KDWLVWKHUDGLDWLRQUHVLVWDQFHRIDKDOIZDYHGLSROH
7KHUDGLDWLRQUHVLVWDQFHRIDKDOIZDYHGLSROHLVJLYHQE\5U RKP

 :KDWLVDORRSDQWHQQD"
$ORRSDQWHQQDLVDUDGLDWLQJFRLORIDQ\FRQYHQLHQWFURVVVHFWLRQRI
RQHRUPRUHWXUQVFDUU\LQJUDGLRIUHTXHQF\FXUUHQW,WPD\DVVXPHDQ\VKDSH
HJUHFWDQJXODUVTXDUHWULDQJXODUDQGKH[DJRQDO 

 *LYHDQH[SUHVVLRQRIUDGLDWLRQUHVLVWDQFHRIDVPDOOORRS
5DGLDWLRQUHVLVWDQFHRIDVPDOOORRSLVJLYHQE\
5U  1$ :KHUH11XPEHURIWXUQV

 +RZWRLQFUHDVHWKHUDGLDWLRQUHVLVWDQFHRIDORRSDQWHQQD
7KHUDGLDWLRQUHVLVWDQFHRIDORRSDQWHQQDFDQEHLQFUHDVHGE\
 ,QFUHDVLQJWKHQXPEHURIWXUQV
 ,QVHUWLQJ D IHUULWH FRUH RI YHU\ KLJK SHUPHDELOLW\ ZLWK
ORRS DQWHQQD V FLUFXPIHUHQFH ZKLFK ZLOO ULVH WKH
PDJQHWLFILHOGLQWHQVLW\FDOOHGIHUULWHORRS

 :KDWDUHWKHW\SHVRIORRSDQWHQQDV"
/RRSDQWHQQDVDUHFODVVLILHGLQWR

$(OHFWULFDOO\VPDOO FLUFXPIHUHQFHO 
%(OHFWULFDOO\ODUJH GLPHQVLRQFRPSDUDEOHWRO 



 :KDWDUH(OHFWULFDOO\6PDOOORRSDQWHQQDV"
(OHFWULFDOO\6PDOOORRSDQWHQQDVLVRQHLQZKLFKWKHRYHUDOOOHQJWKRI
WKH ORRS LV OHVV WKDQ RQHWHQWK RI WKH ZDYHOHQJWK (OHFWULFDOO\ 6PDOO ORRS
DQWHQQDVKDYHVPDOOUDGLDWLRQUHVLVWDQFHVWKDWDUHXVXDOO\VPDOOHUWKDQWKHLU
ORRS UHVLVWDQFHV 7KH\ DUH YHU\ SRRU UDGLDWRUV DQG VHOGRP HPSOR\HG IRU
WUDQVPLVVLRQLQUDGLRFRPPXQLFDWLRQ

 :KDWDUHHOHFWULFDOO\ODUJHORRSDQWHQQDV"
(OHFWULFDOO\/DUJHORRSDQWHQQDVLVRQHLQZKLFKWKHRYHUDOOOHQJWKRI
WKHORRSDSSURDFKHVWKHZDYHOHQJWK

 /LVWRXWWKHXVHVRIORRSDQWHQQD
9DULRXVXVHVRIORRSDQWHQQDDUH

 ,WLVXVHGDVUHFHLYLQJDQWHQQDLQSRUWDEOHUDGLRDQGSDJHUV
 ,W LV XVHG DV SUREHV IRU ILHOG PHDVXUHPHQWV DQG DVGLUHFWLRQDO
DQWHQQDVIRUUDGLRZDYHQDYLJDWLRQ
 ,WLVXVHGWRHVWLPDWHWKHGLUHFWLRQRIUDGLRZDYH3URSDJDWLRQ
 :KDWLVDPRQRSROHDQWHQQD"
$PRQRSROHDQWHQQDFRQVLVWVRIRQHKDOIRIDGLSROH XVXDOO\DVKRUW
YHUWLFDO DQWHQQDPRXQWHGDERYHWKHHDUWKRUJURXS UHIOHFWLQJSODQH 

 :KDWLVDTXDUWHUZDYHPRQRSROH"
2QHTXDUWHUZDYHOHQJWKORQJLWLVDOVRFDOOHGDV0DUFRQLDQWHQQD

 :KDWLVDKHUW]DQWHQQD"
(IIHFWLYH OHQJWK RU KHLJKW RI WKH DQWHQQD EHFRPHV KDOI RI WKH DFWXDO
OHQJWK

 'HILQH+HUW]LDQGLSROH"
+HUW]LDQGLSROHLVGHILQHGDVDVKRUWOLQHDUFRQGXFWRURUVKRUWHOHFWULF
GLSROH ZKRVH OHQJWK LV YHU\ VKRUW FRPSDUHG WR ZDYHOHQJWK O 
FXUUHQWLVDVVXPHGWREHFRQVWDQWWKURXJKRXWLWVOHQJWK




 


 :ULWH GRZQ WKH H[SUHVVLRQV IRU UDGLDWHG ILHOGV RI D KDOI ZDYH GLSROH
DQWHQQD  


  




 $P



 &DOFXODWHWKHSK\VLFDOKHLJKWRIDKDOIZDYHGLSROH * KDYLQJDQWHQQD


4RIDQGEDQGZLGWKRI0+]


I 4;%: ;0+] 0+]
   * FIDQVP


 :KDWLVWKH6SHFLDOIHDWXUHRIIROGHGGLSROHDQWHQQDV"
)ROGHG GLSROH KDV JRW D YHUVDWLOH TXDOLW\ RI SURYLGLQJ DQ\ GHVLUHG
LQSXW LPSHGDQFH E\ LQFUHDVLQJ WKH QXPEHU RI HOHPHQWV DQG VHOHFWLQJ
VXLWDEOHOHQJWKVRIGLSROH

 :KDWDUHWKH$GYDQWDJHVRIIROGHGGLSROH"
7KHUDGLDWLRQSDWWHUQRIDIROGHGGLSROHDQGDFRQYHQWLRQDOKDOIZDYH
LV VDPH EXW WKH LQSXW LPSHGDQFH RI WKH IROGHG GLSROH LV KLJKHU ,W KDV
ORZGLUHFWLYLW\DQGEDQGZLGWKWKDQVLPSOHGLSROH

 :KDWLV$SSOLFDWLRQRIIROGHGGLSROH"
)ROGHG GLSROH LV XVHG DV D GULYHQ HOHPHQW LQ \DJLXGD DQWHQQD ,W
KDVEXLOW LQ LPSHGDQFH WUDQVIRUPLQJ SURSHUWLHV ZKLFK PDNHV LW HDVLHU WR
PDWFKDWUDQVPLVVLRQOLQHWKDWIHHGVWKHDQWHQQD
 :KDWLVSRLQWVRXUFH"
,W LV WKH ZDYHV RULJLQDWH DW D ILFWLWLRXV YROXPH OHVV HPLWWHU VRXUFH DW
WKHFHQWHU2RIWKHREVHUYDWLRQFLUFOH

 :KDWLVPHDQWE\DUUD\"
$Q DQWHQQD LV D V\VWHP RI VLPLODU DQWHQQDV RULHQWHG VLPLODUO\ WR JHW
JUHDWHUGLUHFWLYLW\LQDGHVLUHGGLUHFWLRQ




 :KDWLVPHDQWE\XQLIRUPOLQHDUDUUD\"
$QDUUD\LVOLQHDUZKHQWKHHOHPHQWVRIWKHDUUD\DUHVSDFHGHTXDOO\
DORQJ WKH VWUDLJKW OLQH ,I WKH HOHPHQWV DUH IHG ZLWK FXUUHQWV RI HTXDO
PDJQLWXGHDQGKDYLQJDXQLIRUPSURJUHVVLYHSKDVHVKLIWDORQJWKHOLQHWKHQ
LWLVFDOOHGXQLIRUPOLQHDUDUUD\

 :KDWDUHWKHW\SHVRIDUUD\"
 %URDGVLGHDUUD\
 (QGILUHDUUD\
 &ROOLQHDUDUUD\
 3DUDVLWLFDUUD\

 :KDWLV%URDGVLGHDUUD\"
%URDGVLGHDUUD\LVGHILQHGDVDQDUUDQJHPHQWLQZKLFKWKHSULQFLSDO
GLUHFWLRQ RI UDGLDWLRQ LV SHUSHQGLFXODU WR WKH DUUD\ D[LV DQG DOVR WKH SODQH
FRQWDLQLQJ WKH DUUD\ HOHPHQW )RU %URDG VLGH DUUD\ WKH SKDVH GLIIHUHQFH
DGMDFHQWHOHPHQWLVG 

 'HILQH(QGILUHDUUD\
(QG ILUH DUUD\ LV GHILQHG DV DQ DUUDQJHPHQW LQ ZKLFK WKH SULQFLSDO
GLUHFWLRQRIUDGLDWLRQLVFRLQFLGHVZLWKWKHDUUD\D[LV

 :KDWLVFROOLQHDUDUUD\"
,QWKLVDUUD\WKHDQWHQQDHOHPHQWVDUHDUUDQJHGFRD[LDOO\E\PRXQWLQJ
WKHHOHPHQWVHQGWRHQGLQVWUDLJKWOLQHRUVWDFNLQJWKHPRQHRYHUWKHRWKHU
ZLWKUDGLDWLRQSDWWHUQFLUFXODUV\PPHWU\(J2PQLGLUHFWLRQDODQWHQQD

 :KDWLV3DUDVLWLFDUUD\"
,QWKLVDUUD\WKHHOHPHQWVDUHIHGSDUDVLWLFDOO\WRUHGXFHWKHSUREOHP
RIIHHGOLQH7KHSRZHULVJLYHQWRRQHHOHPHQWIURPWKDWRWKHUHOHPHQWVJHW
E\HOHFWURPDJQHWLFFRXSOLQJ(J<DJLXGDDQWHQQD

 'HILQHEHDPZLGWKRIPDMRUOREH"
,WLVGHILQHGWKHDQJOHEHWZHHQWKHILUVWQXOOV RU LWLVGHILQHGDVWZLFH
WKHDQJOHEHWZHHQWKHILUVWQXOODQGWKHPDMRUOREHPD[LPXPGLUHFWLRQ







 'LIIHUHQWLDWHEURDGVLGHDQG(QGILUHDUUD\

6O1R%URDGVLGHDUUD\ (QGILUHDUUD\
$QWHQQDLVIHGLQSKDVH $QWHQQDHOHPHQWVDUHIHGRXWRISKDVH

G  G EG
0D[LPXPUDGLDWLRQLV
0D[LPXPUDGLDWLRQLVDORQJWKHDUUD\
 SHUSHQGLFXODUDORQJWKHGLUHFWLRQ
D[LV
RIDUUD\D[LV
%HDPZLGWKRIPDMRUOREHLV %HDPZLGWKLVJUHDWHUWKDQWKDWIRUWKDW
WZLFHWKHUHFLSURFDORIDUUD\ RIDEURDGVLGHDUUD\IRUVDPH


D[LV  OHQJWK 



 :KDWLVWKHQHHGIRUWKH%LQRPLDODUUD\"
7KHQHHGIRUDELQRPLDODUUD\LV

L ,Q XQLIRUP OLQHDU DUUD\ DV WKH DUUD\ OHQJWK LV LQFUHDVHG WR
LQFUHDVHWKHGLUHFWLYLW\WKHVHFRQGDU\OREHVDOVRRFFXUV
LL )RU FHUWDLQ DSSOLFDWLRQV LW LV KLJKO\ GHVLUDEOH WKDW VHFRQGDU\
OREHV VKRXOG EHHOLPLQDWHG FRPSOHWHO\ RU UHGXFHG WR PLQLPXP
GHVLUDEOHOHYHOFRPSDUHGWRPDLQOREHV

 'HILQHSRZHUSDWWHUQ
*UDSKLFDO UHSUHVHQWDWLRQ RI WKH UDGLDO FRPSRQHQW RI WKH SRLQWLQJ
YHFWRU ZLWK FRQVWDQW UDGLXV DV D IXQFWLRQ RI DQJOH LV FDOOHG SRZHU GHQVLW\
SDWWHUQRUSRZHUSDWWHUQ

 :KDWLVPHDQWE\VLPLODU3RLQWVRXUFHV"
  :KHQHYHU WKH YDULDWLRQ RI WKH DPSOLWXGH DQG WKH SKDVH RI WKH ILHOG
ZLWK UHVSHFW WR WKH DEVROXWH DQJOH IRU DQ\ WZR VRXUFHV DUH VDPH WKHQ WKH\
DUHFDOOHGVLPLODUSRLQWVRXUFHV7KHPD[LPXPDPSOLWXGHVRIWKHLQGLYLGXDO
VRXUFHVPD\EHXQHTXDO

 :KDWLVPHDQWE\LGHQWLFDO3RLQWVRXUFHV"
 6LPLODU SRLQW VRXUFHV ZLWK HTXDO PD[LPXP DPSOLWXGHV DUH FDOOHG
LGHQWLFDOSRLQWVRXUFHV



 :KDWLVWKHSULQFLSOHRIWKHSDWWHUQPXOWLSOLFDWLRQ"
7KHWRWDOILHOGSDWWHUQRIDQDUUD\RIQRQLVRWURSLFEXWVLPLODUVRXUFHV
LVWKHSURGXFWRIWKH

L LQGLYLGXDOVRXUFHSDWWHUQDQG
LL  7KH DUUD\ SDWWHUQ RI LVRWURSLF SRLQW VRXUFHV HDFK
ORFDWHG DWWKHSKDVHFHQWHURIWKH LQGLYLGXDO VRXUFHKDYLQJ WKH
VDPH DPSOLWXGH DQG SKDVH:KLOH WKH WRWDO SKDVH SDWWHUQ LV WKH
VXP RI WKH SKDVH SDWWHUQV RI WKH LQGLYLGXDO VRXUFHSDWWHUQ DQG
DUUD\SDWWHUQ


 :KDWLVWKHDGYDQWDJHRISDWWHUQPXOWLSOLFDWLRQ"
8VHIXOWRROLQGHVLJQLQJDQWHQQD
,W DSSUR[LPDWHV WKH SDWWHUQ RI D FRPSOLFDWHG DUUD\ ZLWKRXW
PDNLQJOHQJWK\FRPSXWDWLRQV

 :KDWLVWDSHULQJRIDUUD\V"
7DSHULQJRIDUUD\LVDWHFKQLTXHXVHGIRUUHGXFWLRQRIXQZDQWHGVLGH
OREHV 7KH DPSOLWXGH RI FXUUHQWV LQ WKH OLQHDU DUUD\ VRXUFH LVQRQXQLIRUP
KHQFH WKH FHQWUDO VRXUFH UDGLDWHV PRUH HQHUJ\ WKDQ WKH HQGV 7DSHULQJ LV
GRQHIURPFHQWHUWRHQG

 :KDWLVDELQRPLDODUUD\"
,WLVDQDUUD\LQZKLFKWKHDPSOLWXGHVRIWKHDQWHQQDHOHPHQWVLQWKH
DUUD\DUHDUUDQJHGDFFRUGLQJWRWKHFRHIILFLHQWVRIWKHELQRPLDOVHULHV

 :KDWDUHWKHDGYDQWDJHVRIELQRPLDODUUD\"

  $GYDQWDJH
D 1RPLQRUOREHV
  'LVDGYDQWDJHV
D ,QFUHDVHGEHDPZLGWK
E  0DLQWDLQLQJ WKH ODUJH UDWLR RI FXUUHQW DPSOLWXGH LQ ODUJH
DUUD\VLVGLIILFXOW





 :KDWLVWKHGLIIHUHQFHEHWZHHQLVRWURSLFDQGQRQLVRWURSLFVRXUFH

 ,VRWURSLF VRXUFH UDGLDWHV HQHUJ\ LQ DOO GLUHFWLRQV EXW QRQ
LVRWURSLFVRXUFHUDGLDWHVHQHUJ\RQO\LQVRPHGHVLUHGGLUHFWLRQV
 ,VRWURSLF VRXUFH LV QRW SK\VLFDOO\ UHDOL]DEOH EXW QRQLVRWURSLF
VRXUFHLVSK\VLFDOO\UHDOL]DEOH

 :KDWLVD/RRSDQWHQQD"
7KHORRSDQWHQQDLVDUDGLDWLQJFRLORIDQ\FRQYHQLHQWFURVVVHFWLRQRI
RQH RU PRUH WXUQV FDUU\LQJ UDGLR IUHTXHQF\ FXUUHQW ,W PD\ DVVXPH DQ\
VKDSH OLNHV UHFWDQJXODU VTXDUH WULDQJXODU KH[DJRQDO DQG FLUFXODU ORRS
PRVWSRSXODURXWRIWKHVHDUHVTXDUHDQGFLUFOH

 :KDWDUHWKH$SSOLFDWLRQVRIORRSDQWHQQD"

7KH\ DUH VHOGRP HPSOR\HG IRU WUDQVPLVVLRQ LQ UDGLR


FRPPXQLFDWLQJWKH\DUHXVHGLQVXFKDSSOLFDWLRQLWLVXVXDOO\LQ
UHFHLYLQJPRGHZKHUHDQWHQQDHIILFLHQF\LVQRWLPSRUWDQW

7KH\DOVRXVHLWIRUILQGLQJWKHGLUHFWLRQ

 :KDWLVPHDQWE\%URDGEDQGDQWHQQD"
$QWHQQD ZKLFK PDLQWDLQ FHUWDLQ UHTXLUHG FKDUDFWHULVWLFV OLNH JDLQ
IURQW WR EDFN UDWLR 6:5 SRODUL]DWLRQ LQSXW LPSHGDQFH DQG UDGLDWLRQ
SDWWHUQRYHUZLGHUDQJHRIIUHTXHQFLHVDUHFDOOHGZLGHEDQGRUEURDGEDQG
DQWHQQD(*/RJSHULRGLF

 :KDWLVWKH6SHFLDOIHDWXUHRIIROGHGGLSROHDQWHQQDV"
)ROGHG GLSROH KDV JRW D YHUVDWLOH TXDOLW\ RI SURYLGLQJ DQ\ GHVLUHG
LQSXW LPSHGDQFH E\ LQFUHDVLQJ WKH QXPEHU RI HOHPHQWV DQG VHOHFWLQJ
6XLWDEOHOHQJWKVRIGLSROH

 :KDWDUHWKH$GYDQWDJHVRIIROGHGGLSROH"
7KHUDGLDWLRQSDWWHUQRIDIROGHGGLSROHDQGDFRQYHQWLRQDOKDOIZDYH
LVVDPHEXWWKHLQSXWLPSHGDQFHRIWKHIROGHGGLSROHLVKLJKHU,WKDVORZ
GLUHFWLYLW\DQGEDQGZLGWKWKDQVLPSOHGLSROH






 :KDWLV$SSOLFDWLRQRIIROGHGGLSROH"
)ROGHGGLSROHLVXVHGDVDGULYHQHOHPHQWLQ\DJLXGDDQWHQQD,WKDV
EXLOWLQLPSHGDQFHWUDQVIRUPLQJSURSHUWLHVZKLFKPDNHVLWHDVLHUWRPDWFK
DWUDQVPLVVLRQOLQHWKDWIHHGVWKHDQWHQQD

 :KDWDUHWKHGLVDGYDQWDJHVRIORRSDQWHQQD"
2QO\VXLWDEOHIRU/) 0)H[FHSWIRUDYHU\VPDOOGLVWDQFH
7UDQVPLVVLRQ HIILFLHQF\ LV SRRU  KHQFH FDQQRW EH XVHG IRU 8+)
XQOHVVGHVLJQLVFKDQJHG
6SXULRXVLQGXFHGYROWDJHVDUHSURGXFHGLIQHDUE\ORRS
ZLUHV FRQGXFWRUVDUHSUHVHQW
,W LV VXEMHFWHG WR DQWHQQD HIIHFW  QLJKW HIIHFW ZKLFK DUH
PLQLPL]HG E\ EDODQFLQJ  XVLQJ $GFRFN DQWHQQD IRU GLUHFWLRQ
ILQGLQJ

 


81,7
$3(5785($17(11$6

 :KDWDUHWKHGLIIHUHQWW\SHVRIDSHUWXUH"
 (IIHFWLYHDSHUWXUH
 6FDWWHULQJDSHUWXUH
 /RVVDSHUWXUH
 FROOHFWLQJDSHUWXUH
 3K\VLFDODSHUWXUH

 'HILQHGLIIHUHQWW\SHVRIDSHUWXUH"

 (IIHFWLYHDSHUWXUH $H 
,WLVWKHDUHDRYHUZKLFKWKHSRZHULVH[WUDFWHGIURPWKHLQFLGHQWZDYH
DQGGHOLYHUHGWRWKHORDGLVFDOOHGHIIHFWLYHDSHUWXUH
6FDWWHULQJDSHUWXUH $V 
,W LV WKH UDWLR RI WKH UHUDGLDWHG SRZHU WR WKH SRZHU GHQVLW\ RI WKH
LQFLGHQWZDYH
/RVVDSHUWXUH $O 
,WLVWKHDUHDRIWKHDQWHQQDZKLFKGLVVLSDWHVSRZHUDVKHDW
&ROOHFWLQJDSHUWXUH $F 
,WLVWKHDGGLWLRQRIDERYHWKUHHDSHUWXUHV
3K\VLFDODSHUWXUH $S 
7KLVDSHUWXUHLVDPHDVXUHRIWKHSK\VLFDOVL]HRIWKHDQWHQQD

 'HILQH$SHUWXUHHIILFLHQF\"
7KH UDWLR RI WKH HIIHFWLYH DSHUWXUH WR WKH SK\VLFDO DSHUWXUH LV WKH
DSHUWXUHHIILFLHQF\LH

$SHUWXUHHIILFLHQF\ DS $H$S GLPHQVLRQOHVV 

 :KDWLVGXDOLW\RIDQWHQQD"
,W LV GHILQHG DV DQ DQWHQQD LV D FLUFXLW GHYLFH ZLWK D UHVLVWDQFH DQG
WHPSHUDWXUH RQ WKH RQH KDQG DQG WKH VSDFH GHYLFH RQ WKH RWKHU ZLWK
UDGLDWLRQSDWWHUQVEHDPDQJOHGLUHFWLYLW\JDLQDQGDSHUWXUH

 'HILQH6LGH/REH5DWLR
 6LGH /REH 5DWLR LV GHILQHG DV WKH UDWLR RI SRZHU GHQVLW\ LQ WKH
SULQFLSDORUPDLQOREHWRWKHSRZHUGHQVLW\RIWKHORQJHVWPLQRUOREH



 /LVWWKHDUUD\VXVHGIRUDUUD\WDSHULQJ

%LQRPLDO $UUD\ 7DSHULQJ IROORZV WKH FRHIILFLHQW RI ELQRPLDO


VHULHV'ROSK7FKHE\FKHII $UUD\ 7DSHULQJ IROORZV WKH FRHIILFLHQW RI
7FKHE\FKHIISRO\QRPLDO

 'HILQHDWUDYHOLQJZDYHDQWHQQD"
7UDYHOLQJZDYHRUQRQUHVRQDQWDQWHQQDDUHWKRVHLQZKLFKWKHUHLVQR
UHIOHFWHGZDYHLHRQO\LQFLGHQWWUDYHOLQJZDYHWUDYHOLQWKHDQWHQQD

 :KDWLVEHYHUDJHRUZDYHDQWHQQD"
$VLQJOHZLUHDQWHQQDWHUPLQDWHGLQLWVFKDUDFWHULVWLFLPSHGDQFHPD\
KDYHHVVHQWLDOO\DXQLIRUPWUDYHOLQJZDYH7KLVW\SHRIDQWHQQDLVUHIHUUHGWR
DVEHYHUDJHDQWHQQD

 6WDWH+X\JHQV3ULQFLSOH"
+X\JHQVSULQFLSOHVWDWHVWKDWHDFKSRLQWRQDSULPDU\ZDYHIURQWFDQ
EH FRQVLGHUHG WR EH D QHZ VRXUFH RI D VHFRQGDU\ VSKHULFDO ZDYH WKDW D
VHFRQGDU\ZDYHIURQWFDQEHFRQVWUXFWHGDVWKHHQYHORSHRIWKHVHVHFRQGDU\
ZDYHV

 :KDWLV6ORW$QWHQQD"
7KHVORWDQWHQQDLVDQRSHQLQJFXWLQDVKHHWRIDFRQGXFWRUZKLFKLV
HQHUJL]HGWKURXJKDFRD[LDOFDEOHRUZDYHJXLGH

 :KLFKDQWHQQDLVFRPSOHPHQWDU\WRWKHVORWGLSROH"
7KH GLSROH DQWHQQD LV WKH FRPSOHPHQWDU\ WR WKH VORW DQWHQQD 7KH
PHWDODQGDLUUHJLRQVRIWKHVORWDUHLQWHUFKDQJHGIRUWKHGLSROH

 :KDW LV WKH UHODWLRQVKLS EHWZHHQ WKH WHUPLQDO LPSHGDQFH RI VORW DQG
GLSROHDQWHQQD"

    =V=G KR


:KHUH =VLVWKHWHUPLQDOLPSHGDQFHRIWKHVORWDQWHQQD
 =GLVWKHWHUPLQDOLPSHGDQFHRIWKHGLSROHDQWHQQD
  KRLVWKHLQWULQVLFLPSHGDQFHRIWKHIUHHVSDFH




 :KDW LV WKH GLIIHUHQFH EHWZHHQ VORW DQWHQQD DQG LWV FRPSOHPHQWDU\
GLSROHDQWHQQD"
 3RODUL]DWLRQDUHGLIIHUHQW
 7KHHOHFWULFILHOGEHYHUWLFDOO\SRODUL]HGIRUWKHVORWDQG
KRUL]RQWDOO\SRODUL]HGIRULWVFRPSOHPHQWDU\GLSROH
 5DGLDWLRQIRUPWKHEDFNVLGHRIWKHFRQGXFWLQJSODQHRI
WKH VORW DQWHQQD KDV WKH RSSRVLWHSRODULW\ IURP WKDW RI
WKHGLSROHDQWHQQD
 
 +RZVSKHULFDOZDYHVDUHJHQHUDWHG"
:KHQ D YROWDJH 9 LV VXSSOLHG DW WKH LQSXW WHUPLQDOV RI D ELFRQLFDO
DQWHQQD LW ZLOO SURGXFH RXWJRLQJ VSKHULFDO ZDYHV 7KH ELFRQLFDO DQWHQQD
DFWVDVDJXLGHIRUVSKHULFDOZDYHV

 :KDWGR\RXPHDQWE\VHFWRUDOKRUQ"
,IIODULQJ RSHQHGRXW LVGRQHRQO\LQRQHGLUHFWLRQWKHQLWLVFDOOHGDV
DVHFWRUDOKRUQ

 :KDWGR\RXPHDQWE\S\UDPLGDOKRUQ"
,IIODULQJLVGRQHDORQJERWKWKHZDOOV ( + WKHQLWLVFDOOHGDVD
S\UDPLGDOKRUQ

 :KDWLVEDFNOREHUDGLDWLRQ"
6RPH UDGLDWLRQ IURP WKH SULPDU\ UDGLDWRU RFFXUV LQ WKH IRUZDUG
GLUHFWLRQLQDGGLWLRQWRWKHGHVLUHGSDUDOOHOEHDP7KLVLVNQRZQDVEDFNOREH
UDGLDWLRQ

 :KDWDUHWKHYDULRXVIHHGVXVHGLQUHIOHFWRUV"
 'LSROHDQWHQQD
 +RUQIHHG
 (QGILUHIHHG
 &DVVHJUDLQIHHG
 
 :KDWDUHVHFRQGDU\DQWHQQDV"*LYHH[DPSOHV"
$QWHQQDV WKDW DUH QRW UDGLDWRUV E\ WKHPVHOYHV DUH FDOOHG VHFRQGDU\
DQWHQQDV)RUH[DPSOH&DVVHJUDLQ+\SHUEROLFDQWHQQDV





 6WDWH3R\QWLQJWKHRUHP
,WVWDWHVWKDWWKHYHFWRUSURGXFWRIHOHFWULFILHOGLQWHQVLW\YHFWRU(DQG
WKHPDJQHWLFILOHGLQWHQVLW\YHFWRU+DWDQ\SRLQWLVDPHDVXUHRIWKHUDWHRI
HQHUJ\IORZSHUXQLWDUHDDWWKDWSRLQW7KHGLUHFWLRQRISRZHUIORZLV
SHUSHQGLFXODUWRERWKWKHHOHFWULFILHOGDQGPDJQHWLFILHOGFRPSRQHQWV

 'HILQHEHDPZLGWKRIPDMRUOREH"
,WLVGHILQHGWKHDQJOHEHWZHHQWKHILUVWQXOOV RU LWLVGHILQHGDVWZLFH
WKHDQJOHEHWZHHQWKHILUVWQXOODQGWKHPDMRUOREHPD[LPXPGLUHFWLRQ

 6WDWH8QLTXHQHVVWKHRUHP"
,W VWDWHVWKDW IRUD JLYHQ VHWRI VRXUFHV DQGERXQGDU\ FRQGLWLRQV LQ D
ORVV\PHGLXPWKHVROXWLRQWR0D[ZHOOVHTXDWLRQLVXQLTXH

 'HILQH,PDJHWKHRU\"
7KH LPDJH WKHRU\ VWDWHV WKDW D JLYHQ FKDUJH FRQILJXUDWLRQ DERYH DQ
LQILQLWH JURXQGHG SHUIHFW FRQGXFWLQJ SODQH PD\ EH UHSODFHG E\ WKH FKDUJH
FRQILJXUDWLRQ LWVHOI LWV LPDJH DQG DQ HTXLSRWHQWLDO VXUIDFH LQ SODQH RI WKH
FRQGXFWLQJSODQH

 6WDWHWKHPHWKRGRIIHHGLQJVORWDQWHQQDV"
7KHVORWDQWHQQDFDQEHHQHUJL]HGZLWKDFRD[LDOWUDQVPLVVLRQOLQHRU
E\DZDYHJXLGH

 :KDWDUHWKHDSSOLFDWLRQVRIFRUQHUUHIOHFWRU"
 ,Q7HOHYLVLRQ
 3RLQWWRSRLQWFRPPXQLFDWLRQ
 5DGLR$VWURQRP\DSSOLFDWLRQV

 :KDWLV)ODW5HIOHFWRU"
,W KDV D ODUJH IODW VKHHW QHDU D OLQHDU GLSROH DQWHQQD ,W SURYLGHV
EDFNZDUGUDGLDWLRQ,WSURYLGHVVXEVWDQWLDOJDLQLQWKHIRUZDUGGLUHFWLRQE\
UHGXFLQJWKHVSDFHEHWZHHQWKHDQWHQQDDQGWKHVKHHW

 :KDWLV&RUQHU5HIOHFWRU"
,W LV D UHWUR UHIOHFWRU FRQVLVWLQJ RI  RU  PXWXDOO\ SHUSHQGLFXODU
LQWHUVHFWLQJ IODW VXUIDFHV ZKLFK UHIOHFWV WKH (0 ZDYHV EDFN WRZDUGV WKH
VRXUFH




 :KDWLV$FWLYH&RUQHU5HIOHFWRU"
:KHQ WKH GULYHQ HOHPHQW LV XVHG LQ FRQMXQFWLRQ ZLWK WKH FRUQHU
UHIOHFWRULWLVFDOOHGDVDFWLYHFRUQHUUHIOHFWRU

 :KDWLV3DVVLYH&RUQHU5HIOHFWRU"
:KHQ WKHFRUQHU UHIOHFWRU ZLWKRXWGULYHQ HOHPHQWLVFDOOHGDVSDVVLYH
FRUQHUUHIOHFWRU

 8VHVRI&RUQHU5HIOHFWRU"
 8VHG RQ WKH YHVVHOV PDVN DW D KHLJKW RI DWOHDVW P DERYH VHD
OHYHO
 8VHGRQVKLSVDV5DGDU5HIOHFWRUV
 8VHGLQDXWRPRELOHDQGELF\FOHWDLOOLJKWV

 'HILQH9DQWHQQD"
$Q DQWHQQD KDYLQJ D 9 VKDSHG DUUDQJHPHQW RI FRQGXFWRUV IHG E\ D
EDODQFHGOLQHDWWKHDSH[LVFDOOHG9DQWHQQD

 7\SHVRI9DQWHQQD"
 5HVRQDQW9DQWHQQD
 1RQ5HVRQDQW9DQWHQQD




















81,7
63(&,$/$17(11$6$1'$17(11$0($685(0(176

 :KDW DUH WKH SDUDPHWHUV WR EH FRQVLGHUHG IRU WKH GHVLJQ RI DQ KHOLFDO
DQWHQQD"
7KHSDUDPHWHUVWREHFRQVLGHUHGIRUWKHGHVLJQRIDQKHOLFDODQWHQQD
DUH

%DQGZLGWK
*DLQ
,PSHGDQFH
$[LDO5DWLR

 :KDW DUH WKH W\SHV RI UDGLDWLRQ PRGHV RI RSHUDWLRQ IRU DQ KHOLFDO
DQWHQQD
7KHWZRW\SHVRIUDGLDWLRQPRGHVRIRSHUDWLRQSRVVLEOHIRUDQKHOLFDO
DQWHQQDDUH

1RUPDOPRGHRIRSHUDWLRQ
$[LDOPRGHRIRSHUDWLRQ

 /LVWWKHDSSOLFDWLRQVRIKHOLFDODQWHQQD
7KHDSSOLFDWLRQVRIKHOLFDODQWHQQDDUH
 ,W EHFDPH WKH ZRUNKRXVH RI VSDFH FRPPXQLFDWLRQV IRU WHOHSKRQH
WHOHYLVLRQ DQGGDWD EHLQJ HPSOR\HG ERWK RQ VDWHOOLWHV DQG DW JURXQG
VWDWLRQV
 0DQ\ VDWHOOLWHV LQFOXGLQJ ZHDWKHU VDWHOOLWHV GDWD UHOD\ VDWHOOLWHV DOO
KDYHKHOLFDODQWHQQDV
 ,WLVRQPDQ\RWKHUSUREHVRISODQHWVDQGFRPHWVLQFOXGLQJPRRQDQG
PDUVEHLQJXVHGDORQHLQDUUD\VRUDVIHHGVIRUSDUDEROLFUHIOHFWRUV
LWV FLUFXODU SRODUL]DWLRQ DQG KLJKJDLQ DQG VLPSOLFLW\ PDNLQJ LW
HIIHFWLYHIRUVSDFHDSSOLFDWLRQ
 :KDWLVDQRUPDOPRGHRIKHOL[DQWHQQD"
5DGLDWLRQ ILHOGLV PD[LPXP LQWKH GLUHFWLRQ QRUPDOWR WKHKHOL[ D[LV
ZDYH LV QHDUO\ RU H[DFWO\ FLUFXODUO\ SRODUL]HG ZDYH 0RGH LV VDLG WR
EHQRUPDOLIWKHGLPHQVLRQVRIKHOL[LVVPDOOFRPSDUHGZLWKWKHZDYHOHQJWK





 :KDWLVDD[LDOPRGHRIKHOL[DQWHQQD"
5DGLDWLRQ ILHOG LV PD[LPXP LQ WKH HQG ILUH GLUHFWLRQ LH  DORQJ WKH
KHOL[D[LV SRODUL]DWLRQLVFLUFXODURUQHDUO\FLUFXODU

 +RZWKHD[LDOPRGHLVLPSURYHG"
:KHQ WKH KHOL[ FLUFXPIHUHQFH '  VSDFLQJ 6 RI RUGHU RI RQH
ZDYHOHQJWK $[LDO PRGH RI UDGLDWLRQ LV SURGXFHG E\ UDLVLQJ KHOL[
FLUFXPIHUHQFH F* RIRUGHURIRQHZDYHOHQJWK VSDFLQJLVDSSUR[LPDWHO\
RI*D

 :KDWLVWKHHUURULQWURGXFHGLQGLUHFWLRQILQGLQJRIORRSDQWHQQD"
$QWHQQD RU 9HUWLFDO HIIHFW 1LJKW HIIHFW RU $HURSODQH HIIHFW RU
SRODUL]DWLRQHUURU

 :KDWLVDQDUUD\IDFWRU"
,WLVDSSDUHQWWKDWWKHWRWDOILHOGRIDQDUUD\LVHTXDOWRHTXDOILHOGRI
DVLQJOH HOHPHQW SRVLWLRQHG DW WKH RULJLQ PXOWLSOLHG E\ D IDFWRU ZKLFK LV
ZLGHO\UHIHUUHGDVDUUD\IDFWRU

 :KDWDUHWKHDGYDQWDJHVRIELQRPLDODUUD\V"
 $V+3%:LQFUHDVHVDQGKHQFHGLUHFWLYLW\GHFUHDVHV
 )RUGHVLJQRIDODUJHDUUD\ODUJHUDPSUDWLRRIVRXUFHVLVUHTXLUHG

 :KDWLVWKHGLVDGYDQWDJHRIDELQRPLDODUUD\"
$ PDMRU SUDFWLFDO GLVDGYDQWDJH RI ELQRPLDO DUUD\ LV WKH ZLGH
YDULDWLRQV EHWZHHQ WKH DPSOLWXGHV RI WKH GLIIHUHQW HOHPHQWV RI DQ
DUUD\HVSHFLDOO\IRUDQDUUD\ZLWKDODUJHQRRIHOHPHQWV7KLVOHDGVWRYHU\
ORZHIILFLHQFLHVDQGPDNHVWKLVPHWKRGQRWYHU\GHVLUDEOHLQSUDFWLFH

 :KDWLVDELQRPLDODUUD\"
7KH FRHIILFLHQWV RI ELQRPLDO H[SDQVLRQ UHSUHVHQW UHODWLYH DPSOLWXGHV
RI WKH HOHPHQWV 6LQFH WKH FRHIILFLHQWV DUH GHWHUPLQHG IURP WKH
ELQRPLDOVHULHVH[SDQVLRQWKHDUUD\LVNQRZQDVELQRPLDODUUD\

 1DPHDQGGUDZDIUHTXHQF\LQGHSHQGHQWDQWHQQD
/RJ SHULRGLF DQWHQQD LV D IUHTXHQF\ LQGHSHQGHQW DQWHQQD,W LQFOXGHV
DFWLYHUHJLRQDQGUHIOHFWLYHUHJLRQ





 :KDWLV<DJL8GDDQWHQQD"
,W LV DQ DUUD\ RI D GULYHQ HOHPHQW D UHIOHFWRU DQG RQH RU PRUH
GLUHFWRUV

 :KDWGR\RXPHDQE\SDUDVLWLFHOHPHQW"
7KH SDVVLYH HOHPHQWV ZKLFK DUH QRW FRQQHFWHG GLUHFWO\ FRQQHFWHG WR
WKH WUDQVPLVVLRQ OLQH EXW DUH HOHFWULFDOO\ FRXSOHG DUH FDOOHG DV SDUDVLWLF
HOHPHQWV

 :KDWGR\RXPHDQE\GULYHQHOHPHQWV"
'ULYHQ HOHPHQWV DUH DQ DFWLYH HOHPHQW ZKHUH WKH SRZHU IURP WKH
WUDQVPLWWHULVIHGRUZKLFKIHHGVWKHUHFHLYHGSRZHUWRWKHUHFHLYHU

 :K\IROGHGGLSROHDQWHQQDLVXVHGLQ\DJLDQWHQQD"
7KHIROGHGGLSROHKDVKLJKLQSXWLPSHGDQFH,IWKHGLVWDQFHEHWZHHQ
WKHGULYHQDQGSDUDVLWLFHOHPHQWLVGHFUHDVHGLWZLOOORDGWKHGULYHQHOHPHQW
VRLQSXWLPSHGDQFHRIGULYHQHOHPHQWUHGXFHV%XWWKLVZLOOEHFRPSHQVDWHG

 :KDWLVEHDPDQWHQQD"
,IWKUHHHOHPHQWDUUD\DUHXVHGWKHQVXFKDW\SHRI\DJLXGDLVUHIHUUHG
WRDVEHDPDQWHQQD

 :KDWLVDIUHTXHQF\LQGHSHQGHQWDQWHQQD"
$QDQWHQQDLQZKLFKWKHLPSHGDQFHUDGLDWLRQSDWWHUQDQGGLUHFWLYLW\
UHPDLQ FRQVWDQW DV D IXQFWLRQ RI IUHTXHQF\ LV FDOOHG DV IUHTXHQF\
LQGHSHQGHQWDQWHQQD(J/RJSHULRGLFDQWHQQD

 :KDWLV/3'$"
/3'$ PHDQV ORJ SHULRGLF GLSROH DUUD\ ,W LV GHILQHG DV DQ DQWHQQD
ZKRVH HOHFWULFDO SURSHUWLHV UHSHDW SHULRGLFDOO\ ZLWK ORJDULWKP RI WKH
IUHTXHQF\

 :KDWDUHWKHGLIIHUHQWUHJLRQVLQORJSHULRGLFDQWHQQDDQGKRZDUHWKH\
GLIIHUHQWLDWHG"
 ,QDFWLYHUHJLRQ/O
 $FWLYHUHJLRQ/O
 ,QDFWLYHUHIOHFWLYHUHJLRQ/!O





 :KDWDUHWKHDSSOLFDWLRQVRIORJSHULRGLFDQWHQQD"
 +)FRPPXQLFDWLRQ
 7HOHYLVLRQUHFHSWLRQ
 $OOURXQGPRQLWRULQJ

 :KDWDUHWKHDSSOLFDWLRQVRI5KRPELFDQWHQQD"
 +)WUDQVPLVVLRQDQGUHFHSWLRQ
 SRLQWWRSRLQWFRPPXQLFDWLRQ

 'HILQHUKRPELFDQWHQQD
$QDQWHQQDZKLFKFRQVLVWVRIIRXUVWUDLJKWZLUHVDUUDQJHGLQWKHVKDSH
RIGLDPRQGVXVSHQGHGKRUL]RQWDOO\DERYHWKHVXUIDFHRIWKHHDUWKLVFDOOHG
DVDUKRPELFDQWHQQD,WLVRWKHUZLVHFDOOHGDVGLDPRQGDQWHQQDRUWUDYHOLQJ
ZDYHDQWHQQD

 :KDWDUHWKHWZRW\SHVRIUKRPELFDQWHQQDGHVLJQ"
 $OLJQPHQWGHVLJQ
 0D[LPXPILHOGLQWHQVLW\GHVLJQ

 :KDWDUHWKHOLPLWDWLRQVRIUKRPELFDQWHQQD"
 ,WQHHGVDODUJHUVSDFHIRULQVWDOODWLRQ
 'XHWRPLQRUOREHVWUDQVPLVVLRQHIILFLHQF\LVORZ
 'HILQHOHQVDQWHQQD"
$QDQWHQQDZKLFKFROOLPDWHVWKHLQFLGHQWGLYHUJHQWHQHUJ\WRSUHYHQW
LWIURPVSUHDGLQJLQXQGHVLUHGGLUHFWLRQVLVFDOOHGDVOHQVDQWHQQD

 :KDWDUHWKHGLIIHUHQWW\SHVRIOHQVDQWHQQD"
 GLHOHFWULFOHQVRU+SODQHPHWDOSODWHOHQV
 (SODQHPHWDOSODWHOHQVDQWHQQD

 :KDWLVDGLHOHFWULFOHQVDQWHQQD"
'LHOHFWULFOHQVDQWHQQDVDUHWKHDQWHQQDVLQZKLFKWKHWUDYHOLQJZDYH
IURQWVDUHGHOD\HGE\OHQVPHGLD








 :KDWDUHWKHGUDZEDFNVRIOHQVDQWHQQD"
 /HQV DQWHQQDV DUH XVHG RQO\ DW KLJKHU IUHTXHQFLHV DERYH  *+] 
EHFDXVH DW ORZHU IUHTXHQFLHV WKH\ EHFRPH EXON\ DQG KHDY\ /HQV
DQWHQQDVKDYHH[FHVVLYHWKLFNQHVVDWORZIUHTXHQFLHV
 &RVWOLHU IRU WKH VDPH JDLQ DQG EHDP ZLGWK LQ FRPSDULVRQ ZLWK
UHIOHFWRUV

 :KDWLVELFRQLFDODQWHQQD"
7KH ELFRQLFDO DQWHQQD LV D GRXEOH FRQH DQWHQQD ZKLFK LV GULYHQ E\
SRWHQWLDO FKDUJH RU DQ DOWHUQDWLQJ PDJQHWLF ILHOG DW WKH YHUWH[ ,Q WKLV
DQWHQQDERWKWKHFRQHVIDFHLQWKHRSSRVLWHGLUHFWLRQ

 :KDWLV/XQHQEXUJOHQV"
7KH/XQHQEXUJOHQVLVDVSKHULFDOV\PPHWULFGHOD\W\SHOHQVIRUPHG
IURP D GLHOHFWULF ZLWK LQGH[RIUHIUDFWLRQ Q ZKLFKYDULHV DVD IXQFWLRQRI
UDGLXV

 :KDWDUHWKHDGYDQWDJHVRIOHQVDQWHQQD"
 WKHOHQVDQWHQQDIHHGDQGIHHGVXSSRUWGRQRWEORFNWKHDSHUWXUHDV
WKHUD\VDUHWUDQVPLWWHGDZD\IURPWKHIHHG
 ,WKDVJUHDWHUGHVLJQWROHUDQFH
 ,W FDQ EH XVHG WR IHHG WKH RSWLFDO D[LV DQG KHQFH XVHIXO LQ
DSSOLFDWLRQVZKHUHDEHDPLVUHTXLUHGWREHPRYHGDQJXODUO\ZLWK
UHVSHFWWRWKHD[LV

 0HQWLRQWKHXVHVRIOHQVDQWHQQD"
 8QVWHSSHGGLHOHFWULFOHQVLVDZLGHEDQGDQWHQQDDVLWVVKDSHGRHV
QRWGHSHQGRQWKHZDYHOHQJWKDQGKHQFHLWFDQEHXVHGRYHUDZLGH
IUHTXHQF\ UDQJH KRZHYHU WKLV LV QRW WUXH IRU WKH GLHOHFWULF OHQV
DQWHQQDZKLFKLVIUHTXHQF\VHQVLWLYH
 %RWK UHIOHFWRUV DQG OHQV DQWHQQD DUH FRPPRQO\ XVHG DERYH 
0+]/HQVDQWHQQDLVDPLFURZDYHGHYLFH6RLWLVSUHIHUUHGWREH
XVXDOO\DERYH0+]DQGQRWEHORZLW




 


81,7
5$',2:$9(3523$*$7,21

 'HILQH6N\ZDYH
:DYHVWKDWDUULYHDWWKHUHFHLYHUDIWHUUHIOHFWLRQLQWKHLRQRVSKHUHLVFDOOHG
VN\ZDYH

 'HILQH7URSRVSKHULFZDYH
:DYHV WKDW DUULYH DW WKH UHFHLYHU DIWHU UHIOHFWLRQ IURP WKH WURSRVSKHUH
UHJLRQLVFDOOHG7URSRVSKHULFZDYH LH.PIURP(DUWKVXUIDFH 

 'HILQH*URXQGZDYH
:DYHV SURSDJDWHG RYHU RWKHU SDWKV QHDU WKH HDUWK VXUIDFH LV FDOOHG JURXQG
ZDYHSURSDJDWLRQ

 :KDWDUHWKHW\SHRI*URXQGZDYH
*URXQGZDYHFODVVLILHGLQWRWZRW\SHV
 6SDFHZDYH
 6XUIDFHZDYH
 :KDWLVPHDQWE\6SDFH:DYH"
  ,W LV PDGH XS RI GLUHFW ZDYH DQGJURXQGUHIOHFWHG ZDYH $OVR LQFOXGHV WKH
SRUWLRQRIHQHUJ\UHFHLYHGDVDUHVXOWRIGLIIUDFWLRQDURXQGWKHHDUWKVXUIDFHDQG
WKHUHIOHFWLRQIURPWKHXSSHUDWPRVSKHUH

 :KDWLVPHDQWE\6XUIDFH:DYH"
:DYHWKDWLVJXLGHGDORQJWKHHDUWKVVXUIDFHOLNHDQ(0ZDYHLVJXLGHGE\
D WUDQVPLVVLRQ LV FDOOHG VXUIDFH ZDYH $WWHQXDWLRQ RI WKLV ZDYH LV GLUHFWO\
DIIHFWHGE\WKHFRQVWDQWRIHDUWKDORQJZKLFKLWWUDYHOV

 :KDWLVPHDQWE\IDGLQJ"
9DULDWLRQ RI VLJQDO VWUHQJWK RFFXU RQ OLQH RI VLJKW SDWKV DV D UHVXOW RI WKH
DWPRVSKHULFFRQGLWLRQVDQGLWLVFDOOHG,WFDQQRWEHSUHGLFWHGSURSHUO\

 :KDWLVPHDQWE\GLYHUVLW\UHFHSWLRQ"
7R PLQLPL]H WKH IDGLQJ DQG WR DYRLG WKH PXOWL SDWK LQWHUIHUHQFH WKH
WHFKQLTXHXVHGDUHGLYHUVLW\UHFHSWLRQ,WLVREWDLQHGE\WZRZD\V
 6SDFHGLYHUVLW\UHFHSWLRQ
 )UHTXHQF\GLYHUVLW\UHFHSWLRQ
 3RODUL]DWLRQGLYHUVLW\



 'HILQH6SDFHGLYHUVLW\5HFHSWLRQ
7KLVPHWKRGH[SORLWVWKHIDFWWKDWVLJQDOVUHFHLYHGDWGLIIHUHQWORFDWLRQVGR
QRWIDGHWRJHWKHU,WUHTXLUHVDQWHQQDVSDFHGDWOHDVWODSDUWDUHUHIHUUHGDQG
WKHDQWHQQDZKLFKKLJKVLJQDOVWUHQJWKDWWKHPRPHQWGRPLQDWHV

 'HILQHIUHTXHQF\GLYHUVLW\5HFHSWLRQ
7KLV PHWKRG WDNHV DGYDQWDJH RI WKH IDFW WKDW VLJQDOV RI VOLJKWO\ GLIIHUHQW
IUHTXHQFLHVGRQRWIDGHV\QFKURQRXVO\7KLVIDFWLVXWLOL]HGWRPLQLPL]HIDGLQJ
LQUDGLRWHOHJUDSKFLUFXLWV

 'HILQHSRODUL]DWLRQGLYHUVLW\UHFHSWLRQ
,W LV XVHG LQ QRUPDOO\ LQ PLFURZDYH OLQNV DQG LW LV IRXQG WKDW VLJQDO
WUDQVPLWWHG RYHU WKH VDPH SDWK LQ WZR SRODUL]DWLRQV KDYH LQGHSHQGHQW IDGLQJ
SDWWHUQV ,Q EURDG EDQG GLVK DQWHQQD V\VWHP 3RODUL]DWLRQ GLYHUVLW\ FRPELQHG
ZLWKIUHTXHQF\GLYHUVLW\UHFHSWLRQDFKLHYHH[FHOOHQWUHVXOWV

 :KDWLVPHDQWE\)DUDGD\VURWDWLRQ"
'XH WR WKH HDUWKV PDJQHWLF ILHOGV WKH LRQRVSKHUH PHGLXP EHFRPHV
DQLVRWURSLFDQGWKHLQFLGHQWSODQHZDYHHQWHULQJWKHLRQRVSKHUHZLOOVSOLWLQWR
RUGLQDU\ DQG H[WUD RUGLQDU\ ZDYHVPRGHV:KHQ WKHVH PRGHV UHHPHUJH IURP
WKHLRQRVSKHUHWKH\UHFRPELQHLQWRDVLQJOHSODQHZDYHDJDLQ)LQDOO\WKHSODQH
RI SRODUL]DWLRQ ZLOO XVXDOO\ KDYH FKDQJHG WKLV SKHQRPHQRQ LV NQRZQ DV
)DUDGD\VURWDWLRQ

 :KDWDUHWKHIDFWRUVWKDWDIIHFWWKHSURSDJDWLRQRIUDGLRZDYHV"
 &XUYDWXUHRIHDUWK
 (DUWKVPDJQHWLFILHOG
 )UHTXHQF\RIWKHVLJQDO
 3ODQHHDUWKUHIOHFWLRQ
 'HILQHJ\URIUHTXHQF\
)UHTXHQF\ ZKRVH SHULRG LV HTXDO WR WKH SHULRG RI DQ HOHFWURQ LQ LWV RUELW
XQGHUWKHLQIOXHQFHRIWKHHDUWKVPDJQHWLFIOX[GHQVLW\%

 'HILQH0DJQHWR,RQV6SOLWWLQJ
7KH SKHQRPHQRQ RI VSOLWWLQJ WKH ZDYH LQWR WZR GLIIHUHQW FRPSRQHQWV
RUGLQDU\ DQG H[WUDRUGLQDU\ E\ WKH HDUWKV PDJQHWLF ILHOG LVFDOOHG 0DJQHWR
,RQV6SOLWWLQJ





 'HILQH/8+)"

7KHORZHVWXVHIXO+)IRUDJLYHQGLVWDQFHDQGWUDQVPLWWHUSRZHULVGHILQHG
DV WKH ORZHVW IUHTXHQF\ WKDW ZLOO JLYH VDWLVIDFWRU\ UHFHSWLRQ IRU WKDW GLVWDQFH
DQGSRZHU,WGHSHQGVRQ
 7KHHIIHFWLYHUDGLDWHGSRZHU
 $EVRUSWLRQFKDUDFWHURILRQRVSKHUHIRUWKHSDWKVEHWZHHQWUDQVPLWWHU
DQGUHFHLYHU
 7KH UHTXLUHG ILHOG VWUHQJWK ZKLFK LQ WXUQ GHSHQGV XSRQ WKH UDGLR
QRLVHDWWKHUHFHLYLQJORFDWLRQDQGW\SHRIVHUYLFHLQYROYHG

 'HILQH5HIUDFWLYHLQGH["

,WLVGHILQHGDV 


 'HILQHPD[LPXP8VDEOH)UHTXHQF\
7KHPD[LPXP)UHTXHQF\WKDWFDQEHUHIOHFWHGEDFNIRUDJLYHQGLVWDQFHRI
WUDQVPLVVLRQLVFDOOHGWKHPD[LPXPXVDEOHIUHTXHQF\ 08) IRUWKDWGLVWDQFH

08) IFVHF)L

 'HILQHVNLSGLVWDQFH
7KHGLVWDQFHZLWKLQZKLFKDVLJQDORIJLYHQIUHTXHQF\IDLOVWREHUHIOHFWHG
EDFNLVWKHVNLSGLVWDQFHIRUWKDWIUHTXHQF\7KHKLJKHUWKHIUHTXHQF\WKHJUHDWHU
WKHVNLSGLVWDQFH

 'HILQH2SWLPXPIUHTXHQF\"
2SWLPXP IUHTXHQF\ IRU WUDQVPLWWLQJ EHWZHHQ DQ\ WZR SRLQWV LV WKHUHIRUH
VHOHFWHG DV VRPH IUHTXHQF\ O\LQJ EHWZHHQ DERXW  DQG  SHUFHQW RI WKH
SUHGLFWHGPD[LPXPXVDEOHIUHTXHQF\EHWZHHQWKRVHSRLQWV

 'HILQHFULWLFDOIUHTXHQF\"
)RUDQ\OD\HUWKHKLJKHVWIUHTXHQF\WKDWZLOOEHUHIOHFWHGEDFNIRUYHUWLFDO
LQFLGHQFHLV 

 1DPHWKHSRVVLEOHPRGHVRISURSDJDWLRQ"
 *URXQGZDYHSURSDJDWLRQ
 6N\ZDYHSURSDJDWLRQ
 6SDFHZDYHSURSDJDWLRQ


 :KDWLV)UHHVSDFH"
)UHHVSDFHLVWKHVSDFHZKLFKGRHVQRWLQWHUIHUHZLWKWKHQRUPDOUDGLDWLRQDQG
SURSDJDWLRQRIUDGLRZDYHV,QIUHHVSDFHQRPDJQHWLFRUJUDYLWDWLRQDOILHOGVRU
VROLGERGLHVRULRQL]HGSDUWLFOHVDUHDVVXPHGWRH[LVW

 :KDWLVGLIIUDFWLRQ"
7KHEHQGLQJRIWKHSDWKRI(OHFWURPDJQHWLFZDYHVDURXQGWKHVKDUSHGJHVDQG
FRUQHUVRIREVWDFOHVDSSHDULQJLQWKHLUSDWKLVNQRZQDVGLIIUDFWLRQ

 :KDWLV7URSRVSKHULF6FDWWHU"
7URSRVFDWWHU LV D PHFKDQLVP E\ ZKLFK SURSDJDWLRQ LV SRVVLEOH E\ WKH VFDWWHU
DQGGLIIUDFWHGUD\V7KLVVFDWWHULQJWDNHVSODFHLQWKHWURSRVSKHULFUHJLRQ

 'HILQH:KLVWOHUV"
 ,WLVDZKLVWOLQJWRQHZLWKJUDGXDOO\IDOOLQJSLWFK
 ,WRFFXUVGXHWRWUDQVLHQW(0GLVWXUEDQFHV

 :KDWDUHWKHW\SHVRI:KLVWOHUV"
 /RQJ:KLVWOHUV
 6KRUW:KLVWOHUV
 1RLVH:KLVWOHUV

 'HILQH,RQRVRQGH"
7KH PHDVXUHPHQW RI YLUWXDO KHLJKW LV QRUPDOO\ FDUULHG RXW E\ PHDQV RI DQ
LQVWUXPHQWFDOOHGDVLRQRVRQGH

 'HILQHVHFDQWODZ"
 )PXI )FVHFL
)PXILVJUHDWHUWKDQ)FE\DIDFWRUVHFL7KLVLVNQRZQDVVHFDQWODZZKLFKJLYHVWKH
PD[LPXPIUHTXHQF\XVHGIRUVN\ZDYHFRPPXQLFDWLRQ
 'HILQHSRLQWWRSRLQWSURSDJDWLRQ"
(OHFWURPDJQHWLF ZDYHV RI IUHTXHQF\ PRUH WKDQ 0+] DUH UHIOHFWHG EDFN
IURP LRQRVSKHUH EXW WKH\ SHQHWUDWH LW7KLV LV RWKHUZLVH FDOOHG DV 6KRUW ZDYH
SURSDJDWLRQRUSRLQWWRSRLQWSURSDJDWLRQ






 'HILQHFXWRIIIUHTXHQF\"
7KH IUHTXHQF\ DW ZKLFK WKHDWWHQXDWLRQ RI D ZDYHJXLGH LQFUHDVHV VKDUSO\ DQG
EHORZ ZKLFK D WUDYHOLQJ ZDYH LQ D JLYHQ PRGH FDQQRW EH PDLQWDLQHG $
IUHTXHQF\ZLWKDKDOIZDYHOHQJWKWKDWLVJUHDWHUWKDQWKHZLGHGLPHQVLRQRID
ZDYHJXLGH











You might also like