Cross Laminated Timber CLT Structural Design Basic Design and Engineering Principles According To Eurocode

Information
Analysis and structural design of timber structures
Cross-Laminated Timber
Structural Design
Basic design and
engineering principles
according to Eurocode
Cross-laminated timber as an innovative structural
element opens up new possibilities in structural
timber construction. The present guideline is to
assist in properly exploiting and implementing these
possibilities in planning and execution.
Firstly, the two-dimensional construction product
cross-laminated timber (BSP or XLAM) is described
with respect to its manufacture and its properties.
This is followed by the description of the structural
behaviour, basic design principles and fire performance and then modelling assumtions and characteristic material values according to Eurocode.
Joining technology focuses on self-tapping woodscrews; this section is supplemented by general
design proposals. Structural behaviour of buildings
under horizontal loads and earthquake resistance
associated therewith conclude the general part.
Application examples underline the described contents for easier access and discussion of extensive
engineering models.
DI Dr. Markus Wallner-Novak
DI Josef Koppelhuber
DI Kurt Pock
proHolz Austria
November 2014
isbn 978-3-902926-03-6 | Euro 35
Cross-Laminated Timber
Structural Design
Basic design and engineering principles
according to Eurocode
Publication details
Owner and publisher
proHolz Austria
Working group of the Austrian
timber industry for promotion of
the application of timber
Chairman Hans Michael Offner
Managing Director Georg Binder
Project Management
Alexander Eder
1011 Vienna Austria
Uraniastrasse 4
T + 43 (0)1 712 04 74
info@proholz.at, www.proholz.at
Merk Timber GmbH

D-86551 Aichach
Industriestrae 2
T + 49 (0)8251 908 - 0
office@merk.de
www.merk.de
Design
Cover Gassner Redolfi, Schlins (at)
Reinhard Gassner, Marcel Bachmann
Contents Markus Wallner-Novak
Hasslacher Norica Timber

A-9751 Sachsenburg
Feistritz 1
T + 43 (0)4769 2249 - 0
info@hasslacher.at
www.hasslacher.at
Translation
Translation agency Allesprachen, Graz
Financial support by
Binderholz Bausysteme GmbH
A-5400 Hallein
Solvay-Halvic-Strae 46
T + 43 (0)6245 70 500 - 556
office@binderholz-bausysteme.com
www.binderholz-bausysteme.com
Haas Fertigbau Holzbauwerk
GesmbH & Co kg
A-8263 Growilfersdorf
Radersdorf 62
T + 43 (0)3385 666 - 0
Info@Haas-Fertigbau.at
www.haas-fertigbau.at
Mayr-Melnhof Holz Holding ag
A-8700 Leoben, Turmgasse 67
T + 43 (0)3842 300 - 0
holding@mm-holz.com
www.mm-holz.com
Stora Enso
Building and Living
A-9462 Bad St. Leonhard
Wisperndorf 4
T + 43 (0)4350 2301 - 3207
buildingsolutions@
storaenso.com
www.clt.info
Fachverband der Holzindustrie sterreichs
A-1037 Wien
Schwarzenbergplatz 4
T + 43 (0)1 712 26 01
office@holzindustrie.at
www.holzindustrie.at
Authors
DI Dr. Markus Wallner-Novak
DI Josef Koppelhuber
DI Kurt Pock
Print Eberl Print, Immenstadt (de)
1st edition english 2014, 600 copies

Translation on the basis of the German
version of September 2013
Price per copy 35 Euros, incl. vat, excl. shipment
isbn 978-3-902926-03-6
issn 1680-4252
Printed on pefc-certified paper. This product

originates from sustainably managed forests and
controlled sources. www.pefc.at
Copyright 2014 by proHolz Austria and the
authors. The publication and any contributions
and figures contained therein are copyrighted.
Any use beyond the limits of copyright without
the publishers approval is inadmissible and
punishable. proHolz Austria and the authors
endeavour to research or state, respectively,
information correctly and completely. However,
we ask for your understanding that no liability
can be assumed for the contents.
Foreword
The development of timber construction over the

past hundred years has been characterised by enormous innovation. The elements made of timber and
timber materials as well as the joining technique
have undergone constant further development.
The timber, or more exactly the individual board,
represents the basis for glued-laminated timber,
board stack elements or cross-laminated timber.
At the first glance, the relatively new construction
material cross-laminated timber its practical,
economically relevant use in the building sector
started about twenty years ago is a simple construction material. It consists of strength-graded
laminations, which are glued together crosswise
at 90 to an odd number of layer. Superficially,
a homogeneous wooden panel is formed. Upon
closer examination by the engineer, however,
the complexity of this structural element can be
noticed: it is an orthogonally layered, laminar
composite element made of wood with a complex
calculation basis.
Everything should be made as simple as possible,
but not simpler.
(Albert Einstein, 1879 1955)
The present structural design manual is giving
designers, engineering consultants and performers
an understanding of the basic principles for technically proper planning and application of cross-laminated timber. The main focus is on the structural
function of cross-laminated timber as a load-bearing
structural element and on the requirements associated therewith. For joining the cross-laminated
timber elements, design proposals were prepared.
The structural design guideline enables practitioners an easy and fast understanding of the construction product cross-laminated timber, since the
verifications required in terms of structural engineering are described with the associated engineering calculation models and explained on the basis
of practical examples. This structural design manual was meticulously and thoroughly prepared by
DI Dr. Markus Wallner-Novak and his co-authors
DI Josef Koppelhuber and DI Kurt Pock. Here, the
engineer will find answers to the essential issues
when it comes to the structural design of crosslaminated timber, so that this manual represents an
important contribution to practical dimensioning
of cross-laminated timber.
Wilhelm Luggin
Luggin Ziviltechnikergesellschaft m.b.H.
&RQWHQWV
&RQWHQWV
'HILQLWLRQV

/RZHUFDVHOHWWHUV

8SSHUFDVHOHWWHUVDQGDEEUHYLDWLRQV
3URGXFWGHVFULSWLRQ

*HQHUDO

/RDGEHDULQJHIIHFW

-RLQLQJWHFKQLTXH

)XUWKHUQRWHV

0DUNLQJDQGGHVLJQDWLRQRIVWDQGDUGEXLOGXSV
%DVLFSULQFLSOHVRIFDOFXODWLRQ

'HVLJQFRQFHSW

&KDUDFWHULVWLFEXLOGLQJPDWHULDOYDOXHV

&RHIILFLHQWVIRULPSDFWV

3DUWLDOVDIHW\IDFWRUVRQWKHUHVLVWDQFHVLGH

'HIRUPDWLRQFRHIILFLHQWV
&URVVVHFWLRQDOYDOXHV

%HDPV1HWFURVVVHFWLRQDOYDOXHV

%HDPV(IIHFWLYHFURVVVHFWLRQDOYDOXHV

%LD[LDOORDGEHDULQJHIIHFWRISDQHOV

3ODWHV
8OWLPDWHOLPLWVWDWHV

'HVLJQVLWXDWLRQ

7HQVLRQLQWKHHOHPHQWSODQH

7HQVLRQWUDQVYHUVHWRWKHHOHPHQWSODQH

3UHVVLQJRIWKHIURQWIDFHV

%HQGLQJGXHWRSDQHOORDG

%HQGLQJXSRQVWUHVVLQJDVDQXSULJKWJLUGHU

6KHDUXSRQVWUHVVLQJDVDSDQHO

6KHDUXSRQVWUHVVLQJDVDSODWH

7RUVLRQXSRQVWUHVVLQJDVDSDQHO

6WDELOLW\

&RPELQHGVWUHVV

1RWFKHV
6HUYLFHDELOLW\OLPLWVWDWHV

'HVLJQVLWXDWLRQ

/LPLWDWLRQRIGHIOHFWLRQV

9LEUDWLRQV
8OWLPDWHOLPLWVWDWHVLQWKHHYHQWRIILUH
&RQWHQWV

'HVLJQVLWXDWLRQ

&KDUULQJDQGFURVVVHFWLRQDOYDOXHV

9HULILFDWLRQ
/RVVRIVWDWLFHTXLOLEULXP

'HVLJQVLWXDWLRQ

/LIWRII
-RLQLQJWHFKQLTXHV

%XWWMRLQWV

-RLQWGHVLJQV

3LQW\SHIDVWHQHUVDQGWKHLUORDGEHDULQJFDSDFLW\

6HOIWDSSLQJZRRGVFUHZV
%UDFLQJRIEXLOGLQJV

PSDFWVDQGGHVLJQVLWXDWLRQV

6WDELOLW\

)RUFHSURJUHVVLRQ

'LDSKUDJPV

6KHDUZDOOV
$SSOLFDWLRQH[DPSOHV

%DVLFSULQFLSOHV

&HLOLQJV

5RRIV

%DUUHOVKDSHGURRI

:DOOV

6KHDUZDOOV
$QQH[
&DOFXODWLRQPHWKRG
$
7KHH[WHQGHG*DPPDPHWKRG
$
7KHPXOWLOD\HUVKHDUIOH[LEO\FRQQHFWHGEHDP
$
/LVWRIUHIHUHQFHV
'HILQLWLRQV/RZHUFDVHOHWWHUV
'HILQLWLRQV
/RZHUFDVHOHWWHUV
D 'LVWDQFHIURPWKHFHQWUHRIJUDYLW\RIDOD\HUWRWKHRYHUDOOFHQWUHRIJUDYLW\
0LQLPXPGLVWDQFHRIWKHIDVWHQHUV
$FFHOHUDWLRQHDUWKTXDNH
E (OHPHQWZLGWKLQSODQHHOHPHQWGLPHQVLRQQRUPDOO\WUDQVYHUVHWRWKHPDLQ
GLUHFWLRQRIORDGEHDULQJFDSDFLW\5RRPZLGWK
F6SULQJULJLGLW\
G (OHPHQWWKLFNQHVVGLPHQVLRQWUDQVYHUVHWRHOHPHQWSODQH
IRUIDVWHQHUVQRPLQDOGLDPHWHU
GL 7KLFNQHVVRIWKHLQGLYLGXDOOD\HUL
I 6WUHQJWK)UHTXHQF\
I )LUVWQDWXUDOIUHTXHQF\
J 3HUPDQHQWORDGV
J 'HDGZHLJKWRIWKHORDGEHDULQJHOHPHQWV
J 3HUPDQHQWVXSHULPSRVHGORDGV
K (OHPHQWKHLJKWLQSODQHHOHPHQWGLPHQVLRQQRUPDOO\LQWKHPDLQGLUHFWLRQRI
ORDGEHDULQJFDSDFLW\
L 5DGLXVRILQHUWLD
N )DFWRU
NOHG /RDGGXUDWLRQ
O QGLUHFWLRQRIORDGEHDULQJFDSDFLW\XSRQVWDWHPHQWRIWKHSDQHOEXLOGXS
ORQJLWXGLQDOGLUHFWLRQ
6\VWHPOHQJWKVSDQEXFNOLQJOHQJWK
P 0RPHQWSHUUXQQLQJPHWUHRISDQHO0DVVSHUXQLWRIDUHD
Q /LYHORDG$[LDOIRUFHSHUUXQQLQJPHWUHRISDQHO1XPEHU
T /LQHDUORDGOLYHORDG&RHIILFLHQWRIGXFWLOLW\HDUWKTXDNH
U6PDOOHVWUDGLXVRIFXUYDWXUH
V6QRZORDG
Y/DWHUDOIRUFHSHUUXQQLQJPHWUHRISDQHO
(OHPHQWRIWKHIOH[LELOLW\PDWUL[H[WHQGHG*DPPDPHWKRG
YRUK([LVWLQJYDOXH
Z:LQGORDGGHIOHFWLRQ
WUDQVYHUVHWRWKHGLUHFWLRQRIORDGEHDULQJFDSDFLW\XSRQVWDWHPHQWRIWKH
SDQHOEXLOGXSZLGWKGLUHFWLRQ
]2UGLQDWHRIDOD\HULQFURVVVHFWLRQ7LPRVKHQNREHDP
]XO $GPLVVLEOH
8SSHUFDVHOHWWHUVDQGDEEUHYLDWLRQV
$ $UHD
% 6WLIIQHVV
;/$0 &URVVODPLQDWHGWLPEHU

'HILQLWLRQV8SSHUFDVHOHWWHUVDQGDEEUHYLDWLRQV
' /HKUVGDPSLQJIDFWRUPRGDOGDPSLQJ([WHQVLRQDOVWLIIQHVVRIDSODWH

&RPSUHVVLYHIRUFHVKHDUZDOO
'/RU/ 7RSOD\HUORQJLWXGLQDOWRWKHORQJHOHPHQWVLGH
'4RU4 7RSOD\HUWUDQVYHUVHWRWKHORQJHOHPHQWVLGH
( 0RGXOXVRIHODVWLFLW\YDOXHRIDQLPSDFW
( )OH[XUDOVWLIIQHVV
(48 /LPLWVWDWHVRIORVVRIHTXLOLEULXPHTXLOLEULXP
) )RUFH
* 6KHDUPRGXOXV
+ +RUL]RQWDOIRUFH
0RPHQWRILQHUWLD
. 6WLIIQHVVEHQGLQJRUD[LDOIRUFH
. /RQJLWXGLQDOOD\HU
0 0RPHQW0DVVFRQFHQWUDWHGLQRQHSRLQW
0 0RGDOPDVV
1 $[LDOIRUFH
1./ 8WLOLVDWLRQFODVV
4 3XQFWLIRUPOLYHORDG
5 9DOXHRIUHVLVWDQFHIRUYHULILFDWLRQRIORDGEHDULQJFDSDFLW\
6 6WDWLFPRPHQW6WLIIQHVVVKHDU
6/6 6HUYLFHDELOLW\OLPLWVWDWHV
7 6KHDULQJIRUFHLQDMRLQW'XUDWLRQRIYLEUDWLRQHDUWKTXDNH
8/6 8OWLPDWHOLPLWVWDWHV
9 /DWHUDOIRUFH
: 6HFWLRQPRGXOXV
= 7HQVLOHIRUFHVKHDUZDOO
*UHHNOHWWHUV
)( &RHIILFLHQWIRUWKHVKHDUVWLIIQHVVRISODWHV
&RHIILFLHQWRILPSHUIHFWLRQ&KDUULQJUDWH
)RUHDUWKTXDNHVFRHIILFLHQWRIVLJQLILFDQFHRIWKHREMHFW
L )RUFDOFXODWLRQRIHIIHFWLYHFURVVVHFWLRQDOYDOXHVUHGXFWLRQIDFWRUIRUOD\HUL
DFFRUGLQJWRWKH*DPPDPHWKRG
0*4 3DUWLDOVDIHW\IDFWRU
)DFWRU
'LVSODFHPHQW
&RHIILFLHQWRIFRPELQDWLRQ
6KHDULQFUHDVHIDFWRU
] 6KHDUFRUUHFWLRQIDFWRU
6OHQGHUQHVV
&RHIILFLHQWRIIULFWLRQ
%XONGHQVLW\
1RUPDOVWUHVV
6KHDULQJVWUHVV

'HILQLWLRQV8SSHUFDVHOHWWHUVDQGDEEUHYLDWLRQV
QGLFHV
QWKHGLUHFWLRQRIWKHWRSOD\HUPDLQGLUHFWLRQRIVSDQ
IUDFWLOH
7UDQVYHUVHWRWKHWRSOD\HUDQFLOODU\GLUHFWLRQRIVSDQ
$ 6WDUWLQJSRLQWVKHDUZDOOV
D[ $[LDOIDVWHQHUV
EU *URVVFURVVVHFWLRQDOYDOXHRIWKHXQLIRUPO\FRQVLGHUHGFURVVVHFWLRQ
F 3UHVVXUH%XFNOLQJFRHIILFLHQW
FKDU&KDUULQJ
FU QGH[IRUFUDFNIDFWRUFUDFN
FUHHS &UHHSLQJ
FULW7LOWLQJ
G 'HVLJQYDOXHDIIOLFWHGZLWKSDUWLDOVDIHW\IDFWRUV
GHI&RHIILFLHQWIRUGHWHUPLQDWLRQRIFUHHSGHIRUPDWLRQ
( (QGSRLQWVKHDUZDOOV
HI(IIHFWLYHFURVVVHFWLRQDOYDOXHFRQVLGHULQJFURVVVHFWLRQEXLOGXSDQGVKHDU
IOH[LELOLW\*DPPDPHWKRG
IL &RQFHUQLQJILUHGLPHQVLRQLQJ
ILQ(QGYDOXHRIGHIRUPDWLRQ
J*&RQFHUQLQJSHUPDQHQWLPSDFWV
KRU +RUL]RQWDO
LQVW6WDUWYDOXHRIGHIRUPDWLRQ
N &KDUDFWHULVWLFYDOXHQRUPDOO\IUDFWLOHZLWKRXWSDUWLDOVDIHW\IDFWRUV
NL %XFNOLQJ
0&RQFHUQLQJWKHPDWHULDOSDUWLDOVDIHW\IDFWRU%HQGLQJ
PHDQ 0HDQ
PLQ 0LQLPXP
PRG PRGLILFDWLRQIRUFRQVLGHUDWLRQRIORDGGXUDWLRQDQGZRRGPRLVWXUH
QQHW 1HWFURVVVHFWLRQDOYDOXHZLWKFRQVLGHUDWLRQRIWKHFURVVVHFWLRQEXLOGXSEXW
ZLWKRXWFRQVLGHUDWLRQRIVKHDUIOH[LELOLW\RIWKHWUDQVYHUVHOD\HUV
R 7RS
3 3RODUPRPHQWRILQHUWLD
4 &RQFHUQLQJYDULDEOHLPSDFWV
TV QWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ
UPV 5RRWPHDQVTXDUH
5 5ROOLQJVKHDU
UHI 5HIHUHQFHYDOXH
UHO5HODWLYH
V &RQFHUQLQJWKHFHQWUHRIJUDYLW\
V\V6\VWHPFRHIILFLHQW
W 7HQVLRQ
WRW 7RWDO
7 7RUVLRQ
X %RWWRP
\ 3DQHOEHQGLQJDERXWWKH\D[LV
]8SULJKWEHQGLQJDERXWWKH]D[LV

3URGXFWGHVFULSWLRQ*HQHUDO
3URGXFWGHVFULSWLRQ
*HQHUDO
'HILQLWLRQ
&URVVODPLQDWHG WLPEHU LV D WZRGLPHQVLRQDO VROLG WLPEHU SURGXFW IRU ORDGEHDULQJ DSSOLFDWLRQV W
FRQVLVWV RI DW OHDVW WKUHH ERDUG OD\HUV ZKLFK DUH JOXHG WRJHWKHU RYHU WKHLU HQWLUH VXUIDFH DUHD DW
ULJKWDQJOHVWRRQHDQRWKHUDQGJHQHUDOO\UHVXOWLQDV\PPHWULFDOFURVVVHFWLRQ8SWRWKUHHDGMDFHQW
OD\HUVPD\EHDUUDQJHGZLWKWKHLUILEUHVUXQQLQJLQSDUDOOHODVORQJDVWKHLUMRLQWWKLFNQHVVGRHVQRW
H[FHHGPP

)LJXUH&URVVODPLQDWHGWLPEHUEXLOGXSH[SORGHGYLHZ
7KH VRIWZRRG ERDUGV RI WKH LQGLYLGXDO OD\HUV DUH VRUWHG E\ VWUHQJWK SODQHG DQG NLOQGULHG 3UH
GRPLQDQWO\VSUXFHZRRGRIVWUHQJWKFODVV&LVXVHG8SWRRIWKHERDUGVPD\KDYHWKHQH[W
ORZHU VWUHQJWK FODVV &RPPRQ VSHFLHV RI ZRRG DUH DOVR ILU SLQH ODUFK DQG 'RXJODV ILU 6SHFLHV RI
KDUGZRRGOLNHELUFKDUHSHUFHLYDEOHDQGFXUUHQWO\EHLQJWHVWHGEXWQRW\HWFRYHUHGE\FXUUHQWDS
SURYDOV
7KHERDUGVDUHWRPPZLGHDQGWRPPWKLFNDQGWKH\DUHQRUPDOO\FRQQHFWHGLQWRDQ
LQILQLWH ODPLQDWH LQ WKH ORQJLWXGLQDO GLUHFWLRQ E\ PHDQV RI ILQJHU MRLQWV DQG LQ D ILUVW SURGXFWLRQ
VWHS PD\ EH JOXHG WRJHWKHU DW WKHLU QDUURZ VLGHV IODQNJOXHG WR IRUP D WZRGLPHQVLRQDO ERDUG
OD\HU:LWKRXWJOXLQJRIDGMDFHQWERDUGVWKHVHPD\EHDUUDQJHGZLWKMRLQWVRIQRPRUHWKDQPP
5HOLHYLQJJURRYHVLQWKHERDUGVPD\EHXSWRPPZLGHDQGRIWKHERDUGGHHS
)RU FXUYHG FURVVODPLQDWHG WLPEHU ZKLFK LV JOXHG WRJHWKHU LQ D VXLWDEOH FODPSLQJ GHYLFH WKH UHOD
WLRQEHWZHHQWKHKLJKHVWERDUGWKLFNQHVV GL PD[ DQGWKHVPDOOHVWEHQGLQJUDGLXV UPLQ PXVWEHFRP

SOLHGZLWK
UPLQ GL PD[

$FFRUGLQJ
G L PD[
U

WR
I P MGFN

(1
WKH
IROORZLQJ

H[DFWO\
ZLWKWKHIOH[XUDOVWUHQJWK IP MGFN RIWKHILQJHUMRLQWFRQQHFWLRQLQWKHERDUGVQPDQXIDFWXUHU
VSHFLILFDSSURYDOVWKHEHQGLQJUDGLXVLVOLPLWHGGHSHQGLQJRQWKHERDUGWKLFNQHVV

DSSOLHV
7KHXVHRIWLPEHUEDVHGPDWHULDOVLVDGPLVVLEOHXSWRDSRUWLRQLQWKLFNQHVVRILIWKHVHDUHDS
SURYHG IRU XWLOLVDWLRQ FODVV DQGRU :LWK WLPEHUEDVHG PDWHULDOV FHUWDLQ SURSHUWLHV OLNH ORDG
EHDULQJ SHUIRUPDQFH DFRXVWLF EHKDYLRXU ILUH SHUIRUPDQFH RU DSSHDUDQFH FDQ EH LQIOXHQFHG 7KH
ORDGEHDULQJFDSDFLW\RIWKHVHOD\HUVPD\EHFRQVLGHUHGIRUWKHHQWLUHORDGEHDULQJHIIHFWZKHUHLQ
MRLQWVRIWKHWLPEHUEDVHGPDWHULDOVPXVWEHREVHUYHG
QWKHSUHVHQWJXLGHOLQHWKHLQGLYLGXDOSDUWVRIFURVVODPLQDWHGWLPEHUHOHPHQWVDUHGHVLJQDWHGDF
FRUGLQJWR)LJXUHQWKHOLWHUDWXUHWKHWHUPODWHUDOIDFHLVDOVRXVHGIRUVXUIDFHDQGWKHWHUPQDU
URZVLGHLVDOVRXVHGIRUIURQWIDFH

)LJXUH'HVLJQDWLRQRISDUWVDQGDUHDVRIFURVVODPLQDWHGWLPEHU
'LPHQVLRQV
&URVVODPLQDWHGWLPEHULVPDQXIDFWXUHGLQOHQJWKVRIXSWRPDQGZLGWKVRIXSWRRUP
UHVSHFWLYHO\DQGRYHUDOOWKLFNQHVVHVIRUVWDQGDUGEXLOGXSVRIXS WRDERXW PPDQGDWVSHFLDO
UHTXHVWXSWRPPDVVKRZQLQ)LJXUH$FFRUGLQJ WRFHUWDLQDSSURYDOVWKHVH PD[LPXPGL
PHQVLRQVDUHFXUUHQWO\H[WHQGHGXSWRPE\P

)LJXUH'LPHQVLRQVRIFURVVODPLQDWHGWLPEHU

$SSURYDODVFRQVWUXFWLRQSURGXFW
&URVVODPLQDWHG WLPEHU KDV EHHQ SURGXFHG VLQFH KRZHYHU KDV QRW EHHQ LQFOXGHG LQWR VWDQ
GDUGVVRIDU7KHUHIRUHLWVXVHXQGHUEXLOGLQJODZLVUHJXODWHGWKURXJKQDWLRQDORU(XURSHDQ7HFK
QLFDO$SSURYDOV(7$7KHDSSURYDOVLQFOXGHPLQLPXPUHTXLUHPHQWVWRWKHSURGXFWLWVLQLWLDOPDWH
ULDOVDQGLWVPDQXIDFWXUHGHWDLOVIRUYHULILFDWLRQSURFHGXUHVDQGLQFDVHRIWKH(7$UHJXODWLRQVIRU
&(PDUNLQJ
7KHSURGXFWVWDQGDUG (1ZDVVXEPLWWHGWRWKH&(1PHPEHUVIRUYRWLQJDQGZLOOUHVXOWLQ
DQ(1VWDQGDUG$JURXSRIH[SHUWVZLWKLQWKH6WDQGDUGV&RPPLWWHH&(17&LVFXUUHQWO\ZRUNLQJ
RQWKHLQFOXVLRQRIFURVVODPLQDWHGWLPEHULQWR(XURFRGH(1
8VH
)LJXUHJLYHVDQRYHUYLHZRYHUWKHPRVWLPSRUWDQWSRVVLEOHXVHVRIFURVVODPLQDWHGWLPEHUDVD
VWUXFWXUDOHOHPHQW
&URVVODPLQDWHG WLPEHUKDVEHHQDSSURYHGIRUXWLOLVDWLRQFODVVHV DQG8WLOLVDWLRQFODVVFRUUH
VSRQGVWRDQDPELHQWFOLPDWHRIr&LQZKLFKDQDLUKXPLGLW\RILVH[FHHGHGIRURQO\DIHZ
ZHHNVHDFK\HDU7KLVQRUPDOO\FRUUHVSRQGVWRURRIHGRYHUVWUXFWXUDOFRPSRQHQWVSURWHFWHGIURP
WKH HOHPHQWV )RU WKLV DPELHQW FOLPDWH DQ HTXLOLEULXP PRLVWXUH FRQWHQW RI WKH WLPEHU RI QR PRUH
WKDQUHVXOWVIRUVRIWZRRG

3URGXFWGHVFULSWLRQ/RDGEHDULQJHIIHFW

)LJXUH8VHRIFURVVODPLQDWHGWLPEHULQWKHVWUXFWXUH
*OXLQJ
)RU JOXLQJ RI WKH ERDUG OD\HUV WKH WZR DGKHVLYH V\VWHPV SRO\XUHWKDQH 385 DQG PHODPLQH
XUHWKDQHIRUPDOGHK\GH08)DUHFXUUHQWO\XVHG$VDIXUWKHUDGKHVLYHV\VWHPVROYHQWIUHHGLVSHU
VLRQ DGKHVLYHV (3 PD\ EH XVHG 7KH DGKHVLYHV GHVFULEHG KDYH UHODWLYHO\ VKRUW FXULQJ WLPHV DQG
UHVXOWLQWUDQVSDUHQWMRLQWV'LIIHUHQWDGKHVLYHVPD\UHVXOWLQDGLIIHUHQWILUHSHUIRUPDQFH
/RDGEHDULQJHIIHFW
7KH LQWHUORFNHG EXLOGXS RI FURVVODPLQDWHG WLPEHU UHVXOWV LQ DQ LPSURYHG VZHOOLQJ DQG VKULQNLQJ
EHKDYLRXU+RUL]RQWDOO\WKHHOHPHQWVDVSDQHOVDUHSUHGRPLQDQWO\VWUHVVHGLQRQHGLUHFWLRQXQLD[L
DOO\ )LJXUH Q VRPH FDVHV DV ZLWK SRLQWVXSSRUWHG SDQHOV RU ZLWK ELODWHUDO URRI RYHUKDQJ
ORDGGLVWULEXWLRQWDNHVSODFHLQWZRGLUHFWLRQV
8VHG DV D YHUWLFDO SODWH WKH FRPSDUDWLYHO\ KLJK VKHDU VWLIIQHVV DQG GXH WR WKH LQWHUORFNHG OD\HUV
DOVRDQLPSURYHGVKHDUFDSDFLW\FDQEHXVHG


)LJXUH&URVVODPLQDWHGWLPEHUXQLD[LDOORDGGLVWULEXWLRQ
7KHPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\rLVWKHRQHZLWKKLJKHUVWLIIQHVVDQGWKHDQFLOODU\GL
UHFWLRQ RI ORDGEHDULQJ FDSDFLW\ r LV WKH RQH ZLWK ORZHU VWLIIQHVV 7KH PDLQ GLUHFWLRQ RI ORDG
EHDULQJFDSDFLW\QRUPDOO\FRUUHVSRQGVWRWKHGLUHFWLRQRIWKHWRSOD\HUV

)LJXUH&URVVODPLQDWHGWLPEHUHOHPHQWZLWKPDLQDQGDQFLOODU\GLUHFWLRQRIORDGEHDULQJFDSDFLW\
)RUGHWHUPLQDWLRQRIWKHORDGEHDULQJSHUIRUPDQFHXSRQSDQHOEHQGLQJLQRQHGLUHFWLRQRQO\WKRVH
ERDUGOD\HUVDUHLQFOXGHGLQWKHFDOFXODWLRQZKLFKUXQLQWKLVGLUHFWLRQRIORDGEHDULQJFDSDFLW\7KH
FURVVVHFWLRQDOYDOXHVEHORQJLQJWRWKLVQHWFURVVVHFWLRQDUHSURYLGHGZLWKWKHLQGH[QDQGXVHG
IRUYHULILFDWLRQVLQWKHXOWLPDWHOLPLWVWDWHV7KHWUDQVYHUVHERDUGOD\HUVDUHQRWDVVLJQHGORQJLWXGL
QDOVWUHVVHVKHUHWKHPRGXOXVRIHODVWLFLW\WUDQVYHUVHWRWKHILEUHLVDVVXPHGZLWK (
7KXVWKHWUDQVYHUVHOD\HUVDUHFRQVLGHUHGDVSXUHVSDFHUVDQGDUHRQO\VXEMHFWWRVKHDU7KLVVKHDU
VWUHVVRIWKHWUDQVYHUVHOD\HUVPXVWEHREVHUYHGZLWKUHVSHFWWRORDGEHDULQJFDSDFLW\DQGGHIRUPD
WLRQ RI WKH FURVVODPLQDWHG WLPEHU I VKHDU IDLOXUH RFFXUV WKHQ QRUPDOO\ D EUHDN WDQJHQWLDO WR WKH
DQQXDOULQJDUHDVRIWKHWUDQVYHUVHOD\HUVFDQEHREVHUYHG7KLVEUHDNLVFDOOHGUROOLQJVKHDUIDLOXUH

DQGLWLVLQGXFHGE\H[FHHGLQJ WKHUROOLQJVKHDUVWUHQJWK I95N W RQO\ DPRXQWV WRDERXWKDOI WRRQH

WKLUGRIWKHVKHDUVWUHQJWKLQWKHGLUHFWLRQZLWKWKHILEUHVUXQQLQJLQSDUDOOHO I9N
7KHVKHDUGHIRUPDWLRQRIWKHWUDQVYHUVHOD\HUVPXVWEHFRQVLGHUHGDVSDUWRIWKHRYHUDOOGHIRUPD
WLRQ

)LJXUH6KHDUEHKDYLRXURIWKHWUDQVYHUVHOD\HUV

)RUWKHORDGEHDULQJSHUIRUPDQFHGHVFULEHGGLIIHUHQWFDOFXODWLRQPRGHOVPD\EHDSSOLHG$VLPSOH
PRGHOLV WKDWRIWKH GRZHOOHGEHDP7KHORQJLWXGLQDOOD\HUV DUHFRQVLGHUHGDVSDUWVRIWKHEHDPV
FURVVVHFWLRQDQGWKHWUDQVYHUVHOD\HUVDVODPLQDUGRZHOLQJRIWKHFURVVVHFWLRQSDUWVDVVKRZQLQ
)LJXUH

)LJXUH0RGHOFRPSDULVRQZLWKGRZHOOHGEHDP

7KH RYHUDOO GHIRUPDWLRQ FRQVLVWV RI D EHQGLQJ SRUWLRQ DV D FRQVHTXHQFH RI WRUVLRQ RI WKH FURVV
VHFWLRQDQGDVKHDUSRUWLRQDVDFRQVHTXHQFHRIGHIRUPDWLRQRIWKHWUDQVYHUVHOD\HUV7KHSRUWLRQ
RI VKHDU GHIRUPDWLRQV GHSHQGV RQ WKH FURVVVHFWLRQ EXLOGXS WKH HOHPHQWV VOHQGHUQHVV DQG WKH
ORDG SDWWHUQ DQG W\SLFDOO\ OLHV EHORZ RI WKH EHQGLQJ GHIRUPDWLRQV DV VKRZQ VFKHPDWLFDOO\ LQ
)LJXUH


)LJXUH'HIRUPDWLRQSRUWLRQVRIDFURVVODPLQDWHGWLPEHUEHDPIURPEHQGLQJDQGVKHDU
)RUFDOFXODWLRQRIIOH[LEO\FRQQHFWHGIOH[XUDOPHPEHUVWKH*DPPDPHWKRGKDVEHHQGHVFULEHGDQG
LQFOXGHGLQWRWKHJHQHUDOGHVLJQVWDQGDUGV%HVLGHWKH*DPPDPHWKRGWKH7LPRVKHQNREHDPWKH
VKHDU DQDORJ\ PHWKRG WKH ODPLQDWH WKHRU\ DQG WKH FDOFXODWLRQ DFFRUGLQJ WR WKH ILQLWH HOHPHQW
PHWKRGDUHVXLWHGDVZHOO
7KH *DPPD PHWKRG IRUPV WKH EDVLV IRU WKH GHIRUPDWLRQ FDOFXODWLRQ LQ WKH SUHVHQW JXLGHOLQH W LV
DQFKRUHGLQ(XURFRGHDQGPRVWRIWKHDSSURYDOVIRUFURVVODPLQDWHGWLPEHUKDVSURYHQLWVHOILQ
EXLOGLQJSUDFWLFHDQGUHSUHVHQWVDVLPSOHDQGHQJLQHHULQJEDVHGDSSURDFKWRWKHFRPSUHKHQVLRQRI
VKHDUGHIRUPDWLRQV7KHORQJLWXGLQDOOD\HUVDUHUHVSHFWLYHO\UHGXFHGE\DIDFWRULQRUGHUWRDOORZ
IRUWKHVKHDUIOH[LELOLW\RIWKHDGMDFHQWWUDQVYHUVHOD\HUV7KHDVVRFLDWHGHIIHFWLYHPRPHQWRILQHUWLDLV
GHVLJQDWHGZLWKWKHLQGH[HIDQGXVHGIRUWKHYHULILFDWLRQVLQWKHVHUYLFHDELOLW\OLPLWVWDWHV&RQVH
TXHQWO\WKHVKHDUIOH[LELOLW\LVFRQVLGHUHGYLDDUHGXFHGHIIHFWLYHIOH[XUDOVWLIIQHVV
2QH DGYDQWDJH RI WKH *DPPD PHWKRG LV WKH IDFW WKDW GHIRUPDWLRQV FDQ EH FDOFXODWHG DV XVXDO
WKURXJK SXUH EHQGLQJ GHIRUPDWLRQ Q PDQXDO FDOFXODWLRQ QR VHSDUDWH WHUPV IRU VKHDU GHIRUPD
WLRQVPXVWEHGHWHUPLQHGDQGIUDPHZRUNSURJUDPPHVGRQWKDYHWRFRQVLGHUWKHVKHDUIOH[LELOLW\
RI PHPEHUV 'LVDGYDQWDJHRXV LV WKH IDFW WKDW WKH HIIHFWLYH PRPHQW RI LQHUWLD HI GHSHQGV RQ WKH
VSDQ DQGWKXVLVDV\VWHPGHSHQGHQWYDOXH:LWKVKRUWHUVSDQVWKHHIIHFWLYHPRPHQWRILQHUWLD
GHFUHDVHV PRUH RU OHVV TXDGUDWLFDOO\ WR WKH EHQGLQJ VOHQGHUQHVV K 7KH IRUPXODH IRU WKH
*DPPDYDOXHVZHUHREWDLQHGIURPWKHDSSURDFKRIDVLQXVRLGDOEHQGLQJOLQH
&DOFXODWLRQRIWKHFURVVVHFWLRQDOYDOXHVDFFRUGLQJWRWKH*DPPDPHWKRGLVGHVFULEHGLQ6HFWLRQ
8SRQ DSSOLFDWLRQ RI WKH *DPPD PHWKRG LQ IUDPHZRUN SURJUDPPHV LW SURYHV SUDFWLFDO WR GHILQH
FURVVODPLQDWHG WLPEHU DV D XQLIRUP FURVVVHFWLRQ ZLWK WKH DFWXDO HOHPHQW KHLJKW DQG HIIHFWLYH
ZLGWKDVVKRZQLQ)LJXUH7KHVXEVWLWXWHFURVVVHFWLRQWKHQKDVWKHVDPHKHLJKWDQG IOH[XUDO
VWLIIQHVVDVWKHFURVVODPLQDWHGWLPEHUHOHPHQWGHWHUPLQDWLRQRIVWUHVVHVIURPWKHLQWHUQDOIRUFHV
FDOFXODWHGWKLVZD\KRZHYHUPXVWEHXQGHUWDNHQVHSDUDWHO\
EHI

HI
EU

3URGXFWGHVFULSWLRQ-RLQLQJWHFKQLTXH

)LJXUH0RGHOFURVVVHFWLRQVDQGVWLIIQHVVUDWLRV

$VDQDOWHUQDWLYHFDOFXODWLRQPHWKRGWKHVKHDUIOH[LEOH7LPRVKHQNREHDPLV GHVFULEHGLQ$QQH[$
8VLQJ WKLV PHWKRG D VKHDU FRUUHFWLRQ IDFWRU PD\ EH VWDWHG IRU HDFK FURVVVHFWLRQ EXLOGXS 6KHDU
GHIRUPDWLRQVPD\WKHQEHGHWHUPLQHGIURPODWHUDOIRUFHGLVWULEXWLRQLQDGGLWLRQWREHQGLQJGHIRU
PDWLRQ
-RLQLQJWHFKQLTXH
'XHWRWKHLQWHUORFNHGEXLOGXSFURVVODPLQDWHG WLPEHULVZHOOVXLWHG IRUFRQWDFWMRLQLQJVLQFHWKH
ORDGVFDQEHDSSOLHGYLDHQGSUHVVLQJRIWKHOD\HUVRULHQWHGLQWKHGLUHFWLRQRIIRUFH3LQVKDSHGIDV
WHQHUVFDQEHDUUDQJHGLQWKHVXUIDFHDVZHOODVLQWKHIURQWIDFHVDQGD[LDOO\VWUHVVHGDQGRUVXE
MHFWHG WR VKHDU 8SRQ XVH LQ WKH VXUIDFH WKH LQWHUORFNHG EXLOGXS RI FURVVODPLQDWHG WLPEHU KDV D
IDYRXUDEOH HIIHFW RQ WKH WUDQVPLVVLEOH IRUFHV DQG WKH PLQLPXP GLVWDQFHV RI WKH IDVWHQHUV 7KH
PLQLPXPGLVWDQFHVPD\EHGHWHUPLQHGLQGHSHQGHQWRIWKHRULHQWDWLRQRIWKHWRSOD\HUV
/RDGDSSOLFDWLRQSUREOHPVDUHGLVFXVVHGLQPRUHGHWDLOLQ6HFWLRQSLQVKDSHGIDVWHQHUVLQ6HFWL
RQ
)XUWKHUQRWHV
Q(EQHUEXLOGLQJVWUXFWXUHVDUHGHVFULEHGEXLOGLQJSK\VLFVNH\ILJXUHVFDQEHIRXQGDPRQJ
RWKHUV LQ +)$ 7HLELQJHU XQG 0DW]LQJHU ZURWH DQ DUWLFOH RQ EXLOGLQJ ZLWK FURVV
ODPLQDWHG WLPEHU LQ PXOWLVWRUH\ FRQVWUXFWLRQ *UHHQ ZURWH D IHDVLELOLW\ VWXG\ RQ KLJKULVH
EXLOGLQJV

3URGXFWGHVFULSWLRQ0DUNLQJDQGGHVLJQDWLRQRIVWDQGDUGEXLOGXSV
0DUNLQJDQGGHVLJQDWLRQRIVWDQGDUGEXLOGXSV
(7$[[\\\\
]]]]&3'WWWW
0DQXIDFWXUHU\HDURIDWWDFKPHQW
(OHPHQWEXLOGXSW\SHRIZRRGDGKHVLYH
$SSURYDOQXPEHU
1XPEHURIWKHFHUWLILFDWHRIFRQIRUPLW\
)LJXUH&(PDUNLQJDFFRUGLQJWR(XURSHDQ7HFKQLFDO$SSURYDO(7$
)XOILOPHQWRID(XURSHDQ7HFKQLFDO$SSURYDORUWKHSURGXFWVWDQGDUGLVGRFXPHQWHGYLDWKH&(PDUN
DWWKHSURGXFWDQGLQWKHDFFRPSDQ\LQJGRFXPHQWVDVVKRZQE\ZD\RIH[DPSOHLQ)LJXUH
)RUGHVLJQDWLRQRIFURVVODPLQDWHGWLPEHUHOHPHQWVQRUPDOO\WKHPDQXIDFWXUHUVSURGXFWGHVLJQD
WLRQWKHHOHPHQWWKLFNQHVVDQGWKHHOHPHQWEXLOGXSDUHXVHGDVVKRZQLQ)LJXUHDQGXVHGLQ
WKHSUHVHQWJXLGHOLQH

)LJXUH'HVLJQDWLRQVFKHPHIRUWKHEXLOGXSRIFURVVODPLQDWHGWLPEHUHOHPHQWV
$VVKRZQLQ)LJXUHLQWKHSUHVHQWJXLGHOLQHHOHPHQWVZLWKDWRSOD\HUORQJLWXGLQDOWRWKHORQJ
HOHPHQWVLGHDUHGHVLJQDWHGZLWK/FRPPRQLVDOVRWKHGHVLJQDWLRQ'/(OHPHQWVZLWKWKLVRULHQWD
WLRQDUHQRUPDOO\XVHGDVURRIDQGFHLOLQJHOHPHQWVRUXSULJKWDVJLUGHUV(OHPHQWVZLWKDWRSOD\HU
WUDQVYHUVHWRWKHORQJHOHPHQWVLGHDUHGHVLJQDWHGZLWK4DOVR'4DQGDUHXVHGIRUH[DPSOHDV
ZDOOHOHPHQWV
)LJXUH2ULHQWDWLRQRIWKHWRSOD\HUVFRQGLWLRQDORQPDQXIDFWXULQJ

3URGXFWGHVFULSWLRQ0DUNLQJDQGGHVLJQDWLRQRIVWDQGDUGEXLOGXSV

)RU D PDQXIDFWXUHUQHXWUDO IRUPXODWLRQ LQ WHQGHU GRFXPHQWV WKH WKLFNQHVVHV RI WKH LQGLYLGXDO
ERDUG OD\HUV VKRXOG EH VWDWHG LQ DGGLWLRQ WR WKH RYHUDOO WKLFNQHVV )RU WKDW LQ WKH SURGXFW VWDQ

GDUG WKHGHVLJQDWLRQZDVGHWHUPLQHGZLWKWKHUHVSHFWLYHOD\HUWKLFNQHVVDQGWKHOHWWHUVOIRUORQ
JLWXGLQDOOD\HUVORQJLWXGLQDOGLUHFWLRQDQGZIRUWUDQVYHUVHOD\HUVZLGWKGLUHFWLRQ

)LJXUHVKRZVH[DPSOHVIRUHOHPHQWEXLOGXSVZLWKWKHLUGHVLJQDWLRQ

)LJXUH&URVVVHFWLRQYDULDQWV

(1

%DVLFSULQFLSOHVRIFDOFXODWLRQ'HVLJQFRQFHSW
%DVLFSULQFLSOHVRIFDOFXODWLRQ
$V WKH EDVLV IRU VWUXFWXUDO GHVLJQ WKH (XURSHDQ VDIHW\ FRQFHSW LV UHSUHVHQWHG KHUH ZLWK LWV EDVLF
SULQFLSOHV DQG LQ D FRQGHQVHG IRUP $V DQ HVWLPDWH VHFXUHG GDWD DUH JLYHQ LQ RUGHU WR HQDEOH
FKHFNVDQGPDQXDODSSUR[LPDWHGLPHQVLRQLQJ
'HVLJQFRQFHSW
7KH(XURFRGHVDUHLVVXHGZLWKXQLIRUPFRQWHQWVDFURVV(XURSH1DWLRQDODQQH[HV1$'VHUYHPDN
LQJ FRXQWU\VSHFLILF GHWHUPLQDWLRQV IRU VSHFLILF SDUDJUDSKV FKDUDFWHULVWLF YDOXHV DQG IDFWRUV DQG
UHVSHFWLYH DPHQGLQJ RI WKH FRQWHQWV )RU GLPHQVLRQLQJ DQG GHVLJQ RI WLPEHU VWUXFWXUHV WKH (XUR
SHDQ VWDQGDUG 1250(1 DQG DGGLWLRQDOO\ WKH QDWLRQDO DQQH[ IRU $XVWULD IRU H[DPSOH
1250% PXVW EH DSSOLHG )RU FOHDU UHIHUHQFH WR D SDUWLFXODU LVVXH RI D VWDQGDUG GRFX
PHQWLWV\HDURILVVXHLVDGGHGIRUH[DPSOH1250(1
7KH REMHFWLYH RI DQ\ VWUXFWXUDO GHVLJQ LV WKH YHULILFDWLRQ DJDLQVW WKH RFFXUUHQFH RI XQGHVLUHG OLPLW
VWDWHV 7KHVH DUH ORVV RI VWDWLF HTXLOLEULXP HJ OLIWRII H[FHHGLQJ RI WKH ORDGEHDULQJ FDSDFLW\ RU
VHUYLFHDELOLW\ 6DIHW\ IDFWRUV IRU LPSDFWV DV ZHOO DV UHVLVWDQFHV DUH GHWHUPLQHG DJDLQVW WKH RFFXU
UHQFHRIWKHVHOLPLWVWDWHV
&KDUDFWHULVWLFYDOXHVRILPSDFWV
&URVVODPLQDWHGWLPEHUKDVEHHQJHQHUDOO\DSSURYHGIRUVWDWLFDQGTXDVLVWDWLFLPSDFWV$OOLPSDFWV
DVIRUH[DPSOHGHDGORDGVOLYHORDGVVQRZORDGVRUZLQGORDGVDUHVWDWHGDVFKDUDFWHULVWLFYDOXHV
LQ WKH UHVSHFWLYH SDUWV RI (XURFRGH &KDUDFWHULVWLF YDOXHV RI LPSDFW DUH REWDLQHG IURP PHDVXUH
PHQWVDQGORDGPRGHOVDQGZLWKLQDUHIHUHQFHSHULRGQRUPDOO\\HDUVDUHH[FHHGHGLQRQO\
RIDOOFDVHVIUDFWLOHV
&KDUDFWHULVWLFYDOXHRILPSDFW (N
'HVLJQYDOXHVRIVWUHVV
Q WKH YHULILFDWLRQV WKH VWUHVV RQ WKH VWUXFWXUDO HOHPHQWV KDV WR EH DQDO\VHG ZKHUHLQ HIIHFWV DQG
LPSDFWV DUH REVHUYHG (DFK OLPLW VWDWH LV DOORFDWHG D GHVLJQ VLWXDWLRQ ZLWK DVVRFLDWHG FRPELQDWLRQ
UXOHV7KHFKDUDFWHULVWLFYDOXHVRILPSDFWVDUHSURYLGHGZLWKSDUWLDOVDIHW\IDFWRUVDQGFRPELQDWLRQ
FRHIILFLHQWVDQGDGGHGXSIRUXQIDYRXUDEOHFRQGLWLRQV
7KHSDUWLDOVDIHW\IDFWRUVDUH * IRUSHUPDQHQWLPSDFWVDQG 4 IRUYDULDEOHLPSDFWV7KHFRHIILFLHQWV
WREHDSSOLHGIRUWKHYDULRXVOLPLWVWDWHVDUHOLVWHGLQ7DEOH8VLQJWKHPYDULDEOHLPSDFWVPD\
EHUHGXFHGIRUH[DPSOHLIWKH\DFWLQDQDFFRPSDQ\LQJIDVKLRQWRJHWKHUZLWKDOHDGLQJYDULDEOHLP
SDFW 7KH FRHIILFLHQWV GHSHQG RQ WKH UHVSHFWLYH ORDG W\SH DUH GHWHUPLQHG LQ (1 DQG VWDWHG
KHUHLQ6HFWLRQ
7KHFRPELQHGVXPVRILPSDFWVDIIOLFWHGZLWKVDIHW\IDFWRUVLQSUHGHWHUPLQHGGHVLJQVLWXDWLRQVUH
VXOWLQWKH
'HVLJQYDOXHRILPSDFW (G

7DEOH'HVLJQVLWXDWLRQVDQGFRPELQDWLRQFRHIILFLHQWV
&RHIILFLHQWV

/LPLWVWDWHV
([WUDRUGLQDU\
GHVLJQVLWXDWLRQ
GHVLJQVLWXDWLRQ
9HULILFDWLRQRIWKHORDGEHDULQJFDSDFLW\
9HULILFDWLRQRIWKHORDGEHDULQJFDSDFLW\
LQWKHHYHQWRIILUHRUHDUWKTXDNH
(48
8/6

5DUHRUWHPSRUDU\
/RDGEHDULQJFDSDFLW\

&KDUDFWHULVWLF
)UHTXHQW
4XDVLSHUPDQHQW
GHVLJQVLWXDWLRQ
GHVLJQVLWXDWLRQ
GHVLJQVLWXDWLRQ
$YRLGDQFHRIGDPDJH
$SSHDUDQFH
6HUYLFHDELOLW\6/6
&KDUDFWHULVWLFYDOXHVRIVWUHQJWK
7KH UHVLVWDQFH RI FURVVODPLQDWHG WLPEHU HOHPHQWV GHSHQGV RQ WKHLU EXLOGXS DQG WKH PDWHULDO
VWUHQJWK7KHFKDUDFWHULVWLFYDOXHVRIVWUHQJWK IN DUHREWDLQHGIURPVWDQGDUGLVHGPDWHULDOVWHVWLQJ
RUGHULYHGIURPNQRZQUHODWLRQVEHWZHHQYDULRXVPDWHULDOVWUHQJWKVDQGQRUPDOO\DUHWKRVHYDOXHV
ZKLFKDUHXQGHUFXWE\RIWKHVDPSOHVRQO\
&KDUDFWHULVWLFYDOXHRIVWUHQJWK 5N
'HVLJQYDOXHVRIUHVLVWDQFH
2QWKHPDWHULDOVVLGHWKHSDUWLDOVDIHW\IDFWRU 0 LVXVHGQDGGLWLRQIRUWLPEHUVWUHQJWKVWKHLQ
IOXHQFHRIORDGGXUDWLRQDQGWLPEHUPRLVWXUHLVFRQVLGHUHGZLWKWKHPRGLILFDWLRQFRHIILFLHQW NPRG
'HVLJQYDOXHRIUHVLVWDQFH 5G
9HULILFDWLRQ
7KHGHPDQGHGVWUXFWXUDOVDIHW\LVDFKLHYHGZKHQLWFDQEHGHPRQVWUDWHGZLWKLQWKHVFRSHRIYHULIL
FDWLRQVWKDW WKHUHVSHFWLYHGHVLJQYDOXHRIVWUHVVLVVPDOOHUWKDQ RUHTXDOWRWKHUHVSHFWLYHGHVLJQ
YDOXHRIUHVLVWDQFH
9HULILFDWLRQ (G 5G
7KHH[HPSODU\TXDQWLW\YDOXHRIDQLPSDFWLVVKRZQLQWKHEDUFKDUWLQ)LJXUHRQWKHOHIWDQGWKH
UHVLVWDQFH YDOXH RQ WKH ULJKW 7KH FKDUDFWHULVWLF YDOXHV DUH UHVSHFWLYHO\ VKRZQ RQ WKH RXWVLGH DQG
WKHGHVLJQYDOXHVXVHGIRUYHULILFDWLRQRQWKHLQVLGH
QWKH*HUPDQVSHDNLQJDUHDWKHVDIHW\IDFWRUIURPFKDUDFWHULVWLFYDOXHWRGHVLJQYDOXHIRULPSDFWV
DVZHOODVIRUUHVLVWDQFHVOLHVEHORZWKHYDOXHRI7KHHQWLUHVDIHW\GLVWDQFHEHWZHHQWKHFKDUDF
WHULVWLFYDOXHVOLHVDWDERXWWR7KLVFRUUHVSRQGVWRWKHVDIHW\OHYHORIWKHROGGHWHUPLQLVWLF
VDIHW\ FRQFHSW DV VKRZQ LQ WKH VHFRQG FKDUW RQ WKH ULJKW 7KLV FRPSDULVRQ RI WKH VDIHW\ FRQFHSWV
ZLWK FRDUVH VWDQGDUG YDOXHV DQG VLPSOLILFDWLRQV VHUYHV XQGHUVWDQGLQJ DQG OLPLWDWLRQ DQG LV QRW LQ
WHQGHGIRUJHQHUDOVWDWLFYHULILFDWLRQV


)LJXUH&KDUDFWHULVWLFYDOXHVDQGGHVLJQYDOXHVZLWKURXQGHGSDUWLDOVDIHW\IDFWRUV
'HVLJQYDOXHRILPSDFWORDGEHDULQJFDSDFLW\

(G
(*LN 4 (4 N
4 (4LN

(VWLPDWH
(G (N
'HVLJQYDOXHRIUHVLVWDQFHORDGEHDULQJFDSDFLW\

5G
NPRG
5N

P

(VWLPDWH
5G
5N

Q WKH SUHVHQW JXLGHOLQH WKH UHVLVWDQFHV IRU FURVVODPLQDWHG WLPEHU DUH VWDWHG DV GHVLJQ YDOXHV
P DWDPHGLXPORDGGXUDWLRQ NPRG LQXWLOLVDWLRQFODVVHVDQG)RUGHYLDWLQJORDGGX
UDWLRQVWKHIDFWRUVDFFRUGLQJWR7DEOHRQSDJHPXVWEHDSSOLHG'HYLDWLQJQDWLRQDOGHWHUPL
QDWLRQVPXVWEHREVHUYHG

%DVLFSULQFLSOHVRIFDOFXODWLRQ&KDUDFWHULVWLFEXLOGLQJPDWHULDOYDOXHV
&KDUDFWHULVWLFEXLOGLQJPDWHULDOYDOXHV
&URVVODPLQDWHG WLPEHU KDV EHHQ DFFHSWHG DV D FRQVWUXFWLRQ SURGXFW RQ WKH EDVLV RI WHFKQLFDO DS
SURYDOV DQG LV QRW VWDQGDUGLVHG 7KH FKDUDFWHULVWLF EXLOGLQJ PDWHULDO YDOXHV IURP WKH WHFKQLFDO DS
SURYDOVOLHZLWKLQFHUWDLQUDQJHVRIYDULDWLRQDVVWDWHGLQWKHIROORZLQJWDEOHVQWKHSUHVHQWJXLGH
OLQHVHFXUHGYDOXHVZHUHGHWHUPLQHGDQGDUHVKRZQXQGHUOLQHG)RUVWDWLFYHULILFDWLRQRIDEXLOGLQJ
WKHH[DFWYDOXHVIURPWKHUHVSHFWLYHDSSURYDOVDUHGHFLVLYH
*HQHUDOFKDUDFWHULVWLFEXLOGLQJPDWHULDOYDOXHV
7DEOH*HQHUDOFKDUDFWHULVWLFEXLOGLQJPDWHULDOYDOXHV
6XJJHVWHG
GHVLJQYDOXHV
9DOXHUDQJHDFFRUGLQJWR
DSSURYDOV
'HQVLW\
IRUORDGDVVXPSWLRQV
N1Pu

N1Pu
&KDUDFWHULVWLFPLQLPXP
YDOXHRIEXONGHQVLW\
N
NJPu

NJPu
0HDQEXONGHQVLW\
PHDQ
NJPu

NJPu
&KDUDFWHULVWLFEXLOGLQJPDWHULDOYDOXHVIRUSDQHOV
7DEOH&RHIILFLHQWVRIVWLIIQHVVIRUFURVVODPLQDWHGWLPEHUXSRQXVHDVDSDQHO

0RGXOXVRIHODVWLFLW\
QRUPDOVWUHVVHV
(PHDQ
WUDQVYHUVHWRILEUH
6KHDUPRGXOXV
5ROOLQJVKHDUPRGXOXV
9DOXHUDQJHDFFRUGLQJWRDSSURYDOV
1PPt
1PPt
1PPt
1PPt
( PHDQ
1PPt
1PPt
*PHDQ
1PPt
1PPt
*
1PPt
(
0RGXOXVRIHODVWLFLW\
6XJJHVWHG
GHVLJQYDOXHV
*5PHDQ
1PPt
1PPt

PHDQ LQ(1
1250%
(17KHEXONGHQVLW\LVQRUPDOO\VWDWHGIRUVROLGZRRGZLWKRXWFRQVLGHUDWLRQRIWKHKRPRJHQLVDWLRQ
HIIHFWVRIFURVVODPLQDWHGWLPEHU

%ODXQG8LEHO

7DEOH&RHIILFLHQWVRIVWUHQJWKIRUFURVVODPLQDWHGWLPEHUXSRQXVHDVDSDQHO

6XJJHVWHG
GHVLJQYDOXHVIG
5DQJHIRU
FKDUDFWHULVWLFYDOXHV
IRUNPRG DQGP
DFFRUGLQJWRDSSURYDOV
)OH[XUDOVWUHQJWK
IPG
1PPt
1PPt
7HQVLOHVWUHQJWK
IW G
1PPt
1PPt
&RPSUHVVLYHVWUHQJWK
LQGLUHFWLRQRIILEUH
IF G
1PPt
1PPt
/DWHUDOFRPSUHVVLYH
VWUHQJWK
IF G
1PPt
1PPt
6KHDUVWUHQJWK
I9G
1PPt
1PPt
5ROOLQJVKHDUVWUHQJWK
I95G
1PPt
1PPt
7RUVLRQDOVWUHQJWK
I7G
1PPt
1PPt

)RUGHYLDWLQJYDOXHVRINPRGVHH7DEOH)RUGHYLDWLQJYDOXHVRIPVHH7DEOH
&KDUDFWHULVWLF EXLOGLQJ PDWHULDO YDOXHV IRU XSULJKW SODWHV DQG

JLUGHUV
7KH IROORZLQJ FKDUDFWHULVWLF PDWHULDO YDOXHV DSSO\ WR XSULJKW SODWHV DQG JLUGHUV PDGH RI FURVV
ODPLQDWHGWLPEHULQZKLFKWKHOD\HUVXQGHUVWUHVVFRQVLVWRIFRQWLQXRXVO\ILQJHUMRLQWHGERDUGOD\
HUVDVLVQRUPDOO\GHPDQGHGLQWKHSURGXFWDSSURYDOV

7DEOH&RHIILFLHQWVRIVWLIIQHVVIRUFURVVODPLQDWHGWLPEHUXSRQXVHDVDSODWH

0RGXOXVRIHODVWLFLW\
QRUPDOVWUHVVHV
6XJJHVWHG
GHVLJQYDOXHV
(PHDQ
1PPt

1PPt
1PPt

1PPt
*PHDQ
1PPt

1PPt
*
1PPt
(
6KHDUPRGXOXV
9DOXHUDQJHDFFRUGLQJWRDSSURYDOV

)RUXQLYHUVDOO\ILQJHUMRLQWHGFURVVODPLQDWHGWLPEHUHOHPHQWVWKHIOH[XUDOVWUHQJWKIRUVWUHVVXSRQXVHDVD
SDQHOVWUHVVPXVWEHUHGXFHGE\

7KHFKDUDFWHULVWLFFRPSUHVVLYHVWUHQJWKWUDQVYHUVHWRWKHILEUHLVVWDWHGLQ(16HFWLRQZLWK
IFN 1PPtIRUDOOW\SHVRIZRRGLIQRWHVWUHVXOWVDUHSUHVHQW

$WWHQWLRQ6KDSHDQGSURFHVVLQJRIWKHERDUGOD\HUVGHFLVLYHO\LQIOXHQFHWKHUROOLQJVKHDUVWUHQJWK7KHUHIRUH
KHUHLQSDUWLFXODUUHIHUHQFHLVPDGHWRWKHSURGXFWDSSURYDO
IWKHERDUGVDUHHGJHJOXHGRULIZLWKPLVVLQJHGJHJOXLQJDPLQLPXPZLGWKWRWKLFNQHVVUDWLRRILVFRP
SOLHGZLWKWKHQDFFRUGLQJWR(16HFWLRQDFKDUDFWHULVWLFUROOLQJVKHDUVWUHQJWKRI1PPt
PD\EHDSSOLHGRWKHUZLVH1PPt

7DEOH&RHIILFLHQWVRIVWUHQJWKIRUFURVVODPLQDWHGWLPEHUXSRQXVHDVDSODWH
6XJJHVWHG
GHVLJQYDOXHVIG
5DQJHIRU
IRUNPRG DQGP

)OH[XUDOVWUHQJWK
IPG
1PPt
1PPt
7HQVLOHVWUHQJWK
IW G
1PPt
1PPt
&RPSUHVVLYHVWUHQJWK
LQGLUHFWLRQRIILEUH
IF G
1PPt
1PPt
/DWHUDOFRPSUHVVLYH
VWUHQJWK
IF G
1PPt
1PPt
6KHDUVWUHQJWKRIWKH
SODWH
0HFKDQLVP
I96G
1PPt
1PPt
7RUVLRQDOVWUHQJWKRIWKH
JOXHGMRLQWV
0HFKDQLVP
I97G
1PPt
1PPt
6KHDUVWUHQJWK
0HFKDQLVP
I9G
1PPt
1PPt
I95G
1PPt
1PPt

)RUGHYLDWLQJYDOXHVRINPRGVHH7DEOH)RUGHYLDWLQJYDOXHVRIPVHH7DEOH
&RQYHUVLRQE\ORDGGXUDWLRQ
7DEOH)DFWRUVIRUGHVLJQYDOXHVE\ORDGGXUDWLRQLQXWLOLVDWLRQFODVVHVDQG
/RDGGXUDWLRQ ./('
SHUPDQHQW
ORQJ
PHGLXP
EULHI
YHU\EULHI

*
1(
1$1%
1'1)1*
6
1&1+
6
:
:

NPRG
/RDG
DEEUHYLDWLRQ
)DFWRU
PRG
6\VWHPFRHIILFLHQW
%\JOXLQJVHYHUDOERDUGVRIRQHOD\HUDUHOLQNHGXSLQSDUDOOHO/RDGGLVWULEXWLRQWDNHVSODFHYLDVHY
HUDOVWUXFWXUDOHOHPHQWVVLPXOWDQHRXVO\ZKLFKLVZK\WKHHOHPHQWUHVLVWDQFHPD\EHLQFUHDVHGZLWK

)RUXQLYHUVDOO\ILQJHUMRLQWHGFURVVODPLQDWHGWLPEHUHOHPHQWVWKHIOH[XUDODQGWHQVLOHVWUHQJWKVIRUVWUHVV
XSRQXVHDVDSODWHPXVWEHUHGXFHGE\

$WWHQWLRQ6KDSHDQGSURFHVVLQJRIWKHERDUGOD\HUVGHFLVLYHO\LQIOXHQFHWKHUROOLQJVKHDUVWUHQJWK7KHUHIRUH
KHUHLQSDUWLFXODUUHIHUHQFHLVPDGHWRWKHSURGXFWDSSURYDO
IWKHERDUGVDUHHGJHJOXHGRULIZLWKPLVVLQJHGJHJOXLQJDPLQLPXPZLGWKWRWKLFNQHVVUDWLRRILVFRP
SOLHGZLWKWKHQDFFRUGLQJWR(16HFWLRQDFKDUDFWHULVWLFUROOLQJVKHDUVWUHQJWKRI1PPt
PD\EHDSSOLHGRWKHUZLVHDUROOLQJVKHDUVWUHQJWKRI1PPt


WKHV\VWHPFRHIILFLHQW NV\V GXHWRVWDWLFHIIHFWVFRPSDUHGWRWKHERDUGVWUHQJWK :LWKDSSOLFDWLRQRI

DKLJKDYHUDJHERDUGZLGWKRIFPIRUHOHPHQWVZLWKDZLGWKIURPFP NV\V UHVXOWVDQG
IURP FP NV\V 7KH LQFUHDVH LQ VWUHQJWKV ZLWK NV\V RQO\ DSSOLHV ZLWK SDUDOOHO VWUHVVLQJ RI
VHYHUDOERDUGVOLNHZLWKQRUPDODQGEHQGLQJVWUHVVHVKRZHYHUQRWLIRQO\RQHERDUGLVVXEMHFWWR
UROOLQJVKHDU
)RUQDUURZHOHPHQWVZLWKDZLGWKRIOHVVWKDQFPDUHGXFWLRQE\ NV\V LVUHFRPPHQGHG

)LJXUH5HODWLRQEHWZHHQQXPEHURIERDUGVVXEMHFWWRVWUHVVDQGNV\V

(16HFWLRQ

%DVLFSULQFLSOHVRIFDOFXODWLRQ&RHIILFLHQWVIRULPSDFWV
&RHIILFLHQWVIRULPSDFWV
Q7DEOHDOOFRHIILFLHQWVUHTXLUHGIRUVWUXFWXUDOGHVLJQDUHVWDWHGIRUYDULRXVORDGFDWHJRULHV7KH
SDUWLDOVDIHW\IDFWRUVDSSO\WRWKHXOWLPDWHOLPLWVWDWHV7KHPRGLILFDWLRQFRHIILFLHQWVIRUORDGGXUD
WLRQNPRGZKLFKLQWKHYHULILFDWLRQHTXDWLRQDUHRQ WKHPDWHULDOVVLGHFRUUHVSRQGWRWKHYDOXHVIRU
SO\ZRRG DFFRUGLQJ WR (1 7KH FRPELQDWLRQ FRHIILFLHQWV DUH WDNHQ IURP 7DEOHV$
DQG $ RI (1 7KH UHVSHFWLYH FODVV RI WKH ORDG GXUDWLRQ ./(' ZDV WDNHQ RYHU IURP
'17DEOH

7DEOH/RDGFDWHJRULHVDQGDVVRFLDWHGFRHIILFLHQWV
*URXS
&DWHJRU\
/RDG
DE
EUH VXS LQI
YLD
WLRQ
*
3HUPDQHQWORDGV
./('
NPRG
1./

SHUPDQHQW
$/LYLQJDUHDV
1$
PHGLXP
EXLOGLQJFRQVWUXFWLRQ %2IILFHDUHDV
1%
PHGLXP
&$FFXPXODWLRQVRISHRSOH
1&
EULHI

'6DOHVDUHDV
1'
PHGLXP

(6WRUDJHDQGLQGXVWULDOXWLOLVDWLRQ
1(
)7UDIILFDQGSDUNLQJDUHDVOLJKW
1)
PHGLXP
*7UDIILFDQGSDUNLQJDUHDVPHGLXP
1*
PHGLXP
+5RRIV
1+
EULHI
%DOFRQLHVDFFHVVHVHWF
1
EULHI
/RFDWLRQVDERYHPDERYHVHDOHYHO
6
EXLOGLQJFRQVWUXFWLRQ /RFDWLRQVEHORZPDERYHVHDOHYHO
6
/LYHORDGVLQ
6QRZORDGVLQ
:LQGORDGVLQ
EXLOGLQJFRQVWUXFWLRQ
:

ORQJ

EULHI

EULHI

([FHSWIRUWKLVYDOXHWKHWDEOHLQ'1LVLGHQWLFDO7KHUH

PHGLXP

%DVLFSULQFLSOHVRIFDOFXODWLRQ3DUWLDOVDIHW\IDFWRUVRQWKHUHVLVWDQFHVLGH
3DUWLDOVDIHW\IDFWRUVRQWKHUHVLVWDQFHVLGH
7KH SDUWLDO VDIHW\ IDFWRUV RQ WKH UHVLVWDQFH VLGH PD\ EH GHWHUPLQHG QDWLRQDOO\ DQG PXVW EH RE
VHUYHG LQ DQ\ FDVH 7DEOH VWDWHV WKH SDUWLDO VDIHW\ IDFWRUV IRU VRPH FRXQWULHV LQ DQ H[HPSODU\
IDVKLRQ

7DEOH3DUWLDOVDIHW\IDFWRUV
%XLOGLQJPDWHULDORU
P
VWUXFWXUDOHOHPHQWUHVS
6ROLGZRRG
(1

$7'(*%

7

*OXHGODPLQDWHGWLPEHU
(1

$7*%)5(6

'(

7

&URVVODPLQDWHGWLPEHU
(1
$7*%

'()5(6

7

&RQQHFWLRQV

'HIRUPDWLRQFRHIILFLHQWV
7KHFUHHSGHIRUPDWLRQGHSHQGVRQWKHXWLOLVDWLRQFODVVDQGFDQEHGHWHUPLQHGZLWK NGHI DFFRUGLQJ
WR 7DEOH E\ PXOWLSOLFDWLRQ RI WKH LQLWLDO GHIRUPDWLRQ LQ WKH TXDVLSHUPDQHQW GHVLJQ VLWXDWLRQ
Z LQVWTS

%DVLFSULQFLSOHVRIFDOFXODWLRQ'HIRUPDWLRQFRHIILFLHQWV
7DEOHNGHIIRUVROLGZRRGJOXHGODPLQDWHGWLPEHUDQGFURVVODPLQDWHGWLPEHU
NGHIIRUXWLOLVDWLRQFODVV
%XLOGLQJPDWHULDO
6ROLGZRRG
*OXHGODPLQDWHGWLPEHU

&URVVODPLQDWHGWLPEHU

QRW
DSSURYHG

Z FUHHS
NGHI Z LQVWTS

7KLVGHWHUPLQDWLRQLVEDVHGRQDQDO\VHVRI78*UD]*UD]8QLYHUVLW\RI7HFKQRORJ\6HH-EVWOXQG6FKLFN
KRIHU
'HWHUPLQDWLRQVPDGHLQRWKHUGRFXPHQWVDUH
%XLOGLQJPDWHULDO
NGHIIRUXWLOLVDWLRQFODVV

3O\ZRRGDFFRUGLQJWR(1

ODPLQDWHGWLPEHUDFFRUGLQJWR'1

ODPLQDWHGWLPEHU78*UD]WROD\HUV

ODPLQDWHGWLPEHU78*UD]PRUHWKDQOD\HUV

&URVVVHFWLRQDOYDOXHV%HDPV1HWFURVVVHFWLRQDOYDOXHV
7KHFDOFXODWLRQRIFURVVVHFWLRQDOYDOXHVDVDEDVLVIRUOLPLWVWDWHYHULILFDWLRQVLVGLVFXVVHGLQWKHIRO
ORZLQJFKDSWHU
I WKHUH LV D GRPLQDWLQJ GLUHFWLRQ RI ORDG GLVWULEXWLRQ FURVVODPLQDWHG WLPEHU HOHPHQWV PD\ EH
WUHDWHG DV SDQHO VWULSV )RU WKDW WKH FURVVVHFWLRQDO YDOXHV IRU D XQLD[LDOO\ VWUHVVHG QRUPDOO\ RQH
PHWUH ZLGH EHDP DUH GHWHUPLQHG 7KH YHULILFDWLRQV LQ WKH XOWLPDWH OLPLW VWDWHV PD\ EH DQDO\VHG
ZLWKQHWFURVVVHFWLRQDOYDOXHVZLWKRXWFRQVLGHULQJVKHDUIOH[LELOLW\ZKLOHIRUWKHVHUYLFHDELOLW\OLPLW
VWDWHVVKHDUIOH[LELOLW\PXVWEHFRQVLGHUHGYLDHIIHFWLYHFURVVVHFWLRQDOYDOXHVIRUH[DPSOHDFFRUG
LQJWRWKH*DPPDPHWKRG
Q FDVHV GHYLDWLQJ IURP XQLD[LDO ORDG GLVWULEXWLRQ DV IRU H[DPSOH SRLQW VXSSRUW DQJXODU VXSSRUW
RSHQLQJVORFDOVXEDUHDORDGVDQGWKHOLNHWKHELD[LDOORDGEHDULQJHIIHFWRIWKHSDQHOPXVWEHFRQ
VLGHUHG)RUWKDWWKHWZRPRVWFRPPRQPRGHOVJULOODJHDQGRUWKRWURSLFSDQHODUHGLVFXVVHG
&RQFOXGLQJO\WKHFURVVVHFWLRQDOYDOXHVIRUFURVVODPLQDWHGWLPEHUDVDSODWHDUHVWDWHG
7KH JHQHUDO GHWHUPLQDWLRQ DSSOLHV WKDW WKH PRGXOXV RI HODVWLFLW\ RI WKH ERDUGV WUDQVYHUVH WR WKH
ILEUHLVDVVXPHGZLWK (
%HDPV1HWFURVVVHFWLRQDOYDOXHV
QWKHIROORZLQJWKHGHWHUPLQDWLRQRIWKHFURVVVHFWLRQDOYDOXHVIRUWKHPDLQGLUHFWLRQRIVSDQLV
GHPRQVWUDWHGIQHHGHGWKHFURVVVHFWLRQDOYDOXHVIRUWKHDQFLOODU\GLUHFWLRQRIVSDQDUHGHWHU
PLQHGDQDORJRXVO\7KHQWKHWUDQVYHUVHRXWHUOD\HUVDUHQRWFRQVLGHUHG

)LJXUH6\PPHWULFDOFURVVVHFWLRQGHVLJQDWLRQRIOD\HUVDQGGLPHQVLRQV

&HQWUHRIJUDYLW\
)RUVWUXFWXUDOGHVLJQLQWKHFROGVWDWHIRUV\PPHWULFDOHOHPHQWEXLOGXSVWKHSRVLWLRQRIWKHFHQWUH
RI JUDYLW\ LV GHWHUPLQHG ZLWK WKH D[LV RI V\PPHWU\ )RU XQV\PPHWULFDO FURVVVHFWLRQV DV UHVXOWLQJ
GXH WR GLIIHUHQW VWUHQJWK FODVVHV JOXHGRQ WLPEHUEDVHG PDWHULDOV UHGXFWLRQV LQ FURVVVHFWLRQ RU
IROORZLQJFKDUULQJWKHSRVLWLRQRIWKHFHQWUHRIJUDYLW\VKRZQLQ)LJXUHPXVWEHGHWHUPLQHGDV
IROORZV
)RUFURVVVHFWLRQVIURPOD\HUVZLWKGLIIHUHQWPRGXOLRIHODVWLFLW\FKRRVHUHIHUHQFHPRGXOXV
(F
'HWHUPLQHWKHSRVLWLRQRIWKHFHQWUHRIJUDYLW\ RL RIWKHLQGLYLGXDOOD\HUVIURPWKHHOHPHQWV
XSSHUHGJH
&DOFXODWHWKHRYHUDOOFHQWUHRIJUDYLW\
Q
]V
(L
(
L
EL GL RL
(L
E GL
(
F

'HWHUPLQHWKHGLVWDQFHRIWKHFHQWUHRIJUDYLW\ DL RIWKHLQGLYLGXDOOD\HUVIURPWKHRYHUDOO
FHQWUHRIJUDYLW\6
DL
RL ]V

)LJXUH8QV\PPHWULFDOFURVVVHFWLRQ'HVLJQDWLRQRIWKHFURVVVHFWLRQDOGLPHQVLRQVDQGEDVLFUHSUH
VHQWDWLRQRIWKHVWUHVVFXUYHV
Q 1XPEHURIORQJLWXGLQDOOD\HUV
$UHD
$QHW
(L
(
L
E GL $UHDQHW

6HFWLRQ0RGXOXV
QHW
:QHW
PD[{_ ]R __ ]X _ }
6HFWLRQPRGXOXVQHW

:LWKWKHQHWPRPHQWRILQHUWLD
QHW
(L E GL

F
(
L
(L
(
L
E GL DL

]R

]V 'LVWDQFHRIWKHWRSHGJHILEUHWRWKHRYHUDOOFHQWUHRIJUDYLW\
]X
G |]V | 'LVWDQFHRIWKHERWWRPHGJHILEUHWRWKHRYHUDOOFHQWUHRIJUDYLW\

7KHIROORZLQJDSSOLHVWRWKHGHWHUPLQDWLRQRIVWUHVVHV
PG
(L 0 \G

(F :QHW

6WDWLFPRPHQW
7KHVKHDUFDSDFLW\LVJHQHUDOO\GHWHUPLQHGE\WKHUROOLQJVKHDUVWUHQJWKRIWKHWUDQVYHUVHOD\HUV
7KHDVVRFLDWHGVWDWLFPRPHQWLV
P/
L
E GL DL
(
F
L
65 QHW
6WDWLFPRPHQWUROOLQJVKHDU

P/ QGH[RIWKDWORQJLWXGLQDOOD\HUFORVHVWWRWKHSRVLWLRQRIWKHFHQWUHRIJUDYLW\
DVVHHQIURPWKHWRSHGJHRIWKHFURVVVHFWLRQ
)RU UHDVRQV RI HTXLOLEULXP WKH VKHDU VWUHVV LQ WKH WUDQVYHUVH OD\HUV LV FRQVWDQW DV VKRZQ LQ
)LJXUH

1RWH )RU HOHPHQWV ZLWK FURVVVHFWLRQ EXLOGXSV VWDFNHG LQ D VSHFLDO IDVKLRQ RU ZLWK GLIIHUHQW
VWUHQJWK FODVVHV WKH VKHDU IDLOXUH FDQ EH GHWHUPLQHG IURP WKH VKHDU VWUHQJWK RI WKH ORQJLWXGLQDO
OD\HUFORVHVWWRWKHFHQWUHRIJUDYLW\DQGQRWIURPWKHUROOLQJVKHDUVWUHQJWKRIWKHWUDQVYHUVHOD\HU
FORVHVWWRWKHFHQWUHRIJUDYLW\7KHDVVRFLDWHGVWDWLFPRPHQWPXVWEHGHWHUPLQHGDVIROORZV
IWKHFHQWUHRIJUDYLW\LVORFDWHGLQWKHDIIHFWHGORQJLWXGLQDOOD\HU

6QHW
GN
DN
(L

6WDWLFPRPHQWVKHDU
E GL DL E

(F
N/

DN 'LVWDQFHRIWKHFHQWUHRIJUDYLW\LQWKHOD\HULQFOXGLQJWKHFHQWUHRIJUDYLW\
GN 7KLFNQHVVRIWKHOD\HULQFOXGLQJWKHFHQWUHRIJUDYLW\

IWKHFHQWUHRIJUDYLW\LVQRWORFDWHGLQWKHDIIHFWHGORQJLWXGLQDOOD\HU
6QHW
N/
(L
(
L
E GL DL 6WDWLFPRPHQWVKHDU

N/ QGH[RIWKHORQJLWXGLQDOOD\HUFORVHVWWRWKHFHQWUHRIJUDYLW\DVVHHQIURPWKH
WRSHGJHRIWKHFURVVVHFWLRQ
5DGLXVRILQHUWLD
)RUVWUXFWXUDOHOHPHQWVZLWKDULVNRIEXFNOLQJWKHLQIOXHQFHRIVKHDUIOH[LELOLW\PXVWEHFRQVLGHUHG
IRUWKHYHULILFDWLRQDJDLQVWEXFNOLQJIURPWKHHOHPHQWSODQH7KLVFDQEHFRQVLGHUHGZLWKWKHHIIHF
WLYHPRPHQWRILQHUWLD HI DFFRUGLQJWR*DPPDPHWKRG7KHQWKHEXFNOLQJOHQJWK NL PXVWEH
DVVXPHGDVWKHUHIHUHQFHOHQJWK UHI

L \HI
HI
(IIHFWLYHUDGLXVRILQHUWLD
$QHW

%XFNOLQJ DERXW WKH ]D[LV PXVW RQO\ EH FRQVLGHUHG IRU YHU\ QDUURZ ZDOO FROXPQV ZLWK D FROXPQ
ZLGWK K L \HI

7RUVLRQDOUHVLVWDQFH
7KH WRUVLRQDO UHVLVWDQFH RI FURVVODPLQDWHG WLPEHU GHSHQGV RQ WKH FURVVVHFWLRQ EXLOGXS DQG WKH
HOHPHQWZLGWKDQGZDVGLVFXVVHGE\6LOO\

7KHPRPHQWRIWRUVLRQDOUHVLVWDQFHRIKRPRJHQHRXVUHFWDQJXODUFURVVVHFWLRQVLV
:7
F G K

F

ZLWKWKHIDFWRUV

F
G
G

K
K

F
G

K

G

K

8SRQXVLQJFURVVODPLQDWHGWLPEHUDVDQXSULJKWJLUGHUZLWKDULVNRIWLOWLQJWKHWRUVLRQDOPRPHQW
RILQHUWLDRIWKHJURVVFURVVVHFWLRQZKLFKLVFRQVLGHUHGKRPRJHQHRXVFDQEHDSSUR[LPDWHO\XVHG
ZLWKUHGXFWLRQRIWKHWRUVLRQDOVWLIIQHVVDFFRUGLQJWR6LOO\
7&/7 7
F
G K

F
G
G

K
K
3RODUPRPHQWRILQHUWLDRIJOXHGVXUIDFHV
)RUGHVLJQZLWKVKHDUVWUHVVLQWKHHOHPHQWSODQHSODWHGLIIHUHQWIDLOXUHPHFKDQLVPVDFFRUGLQJWR
6HFWLRQDUHFRQVLGHUHG$QDVVRFLDWHGFURVVVHFWLRQDOYDOXHLVWKHSRODUPRPHQWRIUHVLVWDQFHRI
WKHJOXHGVXUIDFHV

&URVVVHFWLRQDOYDOXHV%HDPV(IIHFWLYHFURVVVHFWLRQDOYDOXHV
3RODUPRPHQWRILQHUWLD
7KH SRODU PRPHQW RI LQHUWLD DSSOLHV WR OLQHDU VWUHVV GLVWULEXWLRQ RI WKH WRUVLRQDO VKHDULQJ VWUHVVHV
IURPWKHFHQWUHRIWKHUHFWDQJXODUJOXHGVXUIDFHXSWRWKHRXWHUHGJH7KHSRODUPRPHQWRILQHUWLD
3 LV VOLJKWO\ ODUJHU WKDQ WKH WRUVLRQDO PRPHQW RI LQHUWLD 7 VLQFH XSRQ WRUVLRQ RI PHPEHUV WKH
VKHDULQJVWUHVVHVDUHQRWOLQHDU
S

D D D D

)RUVTXDUHLQWHUVHFWLRQDUHDV
S
D

D $VVXPHGERDUGZLGWK1RUPDOO\DPHDQZLGWKRID PPLVDVVXPHGDOVR
VHH6HFWLRQ
3RODUPRPHQWRIUHVLVWDQFH
)RU GHWHUPLQDWLRQ RI WKH WRUVLRQDO VKHDULQJ VWUHVVHV LQ WKH JOXHG LQWHUVHFWLRQ DUHDV WKH SRODU PR
PHQWRIUHVLVWDQFHLVUHTXLUHG
QJHQHUDO
:S
3

D

)RUVTXDUHLQWHUVHFWLRQDUHDVUHVXOWV
:S
D

%HDPV(IIHFWLYHFURVVVHFWLRQDOYDOXHV
$V GHVFULEHG LQ WKH LQWURGXFWLRQ WKH LQIOXHQFH RI VKHDU GHIRUPDWLRQV RQ WKH RYHUDOO GHIRUPDWLRQ
PXVW EH FRQVLGHUHG Q WKH SUHVHQW JXLGHOLQH WKH *DPPD PHWKRG LV XVHG IRU WKDW DQG WKH VKHDU
GHIRUPDWLRQLVFRQVLGHUHGLQDVLPSOLILHGPDQQHUYLDDQLQFUHDVHGEHQGLQJGHIRUPDWLRQ7KXVFRQ
WUDU\WRWKHSXUHIOH[XUDOVWLIIQHVVRIWKHQHWFURVVVHFWLRQ (QHW DQHIIHFWLYHPRPHQWRILQHUWLD HI LV
XVHGIRUFDOFXODWLRQ

&URVVVHFWLRQDOYDOXHV%HDPV(IIHFWLYHFURVVVHFWLRQDOYDOXHV
7KH*DPPDPHWKRGDFFRUGLQJWR(XURFRGH

7KHIRUPXODVIRUWKH*DPPDPHWKRGZHUHHGLWHGLQ(XURFRGH VXFKWKDWWKH\FDQEHDSSOLHGXQ
FKDQJHGIRUFDVHVZLWKWZRDVZHOODVWKUHHORQJLWXGLQDOOD\HUV7KHRUHWLFDOO\LQERWKFDVHVWKHVHF
RQGORQJLWXGLQDOOD\HUIURPWKHWRSLVUHWDLQHGDVVKRZQLQ)LJXUHZLWKDWKLFNHUHGJH7KHDGMD
FHQWOD\HUVDUHIOH[LEO\OLQNHGWRLW DQG WKHLUUHVSHFWLYH6WHLQHUSRUWLRQUHGXFHGE\D *DPPDYDOXH
GHSHQGLQJRQWKHVSDQ)RUFURVVVHFWLRQVZLWKWZRORQJLWXGLQDOOD\HUVWKHDVVRFLDWHGIRUPXODVUH
VXOWLQXQV\PPHWULFDOLQWHUPHGLDWHUHVXOWV

)LJXUH'LVWDQFHVLQWKH*DPPDPHWKRGDFFRUGLQJWR(XURFRGH
1 =
1
2 E A
d 1,2
1 +
1
1
2
b G R,12
ref

P

1
m

G
( $

E *5
UHI

P

D
(
G
(
G
G
G
E G G E G G
(F
(F

(L
L E GL
(F
L

G
G
D G D

G
G
G D

D

HI
(L E GL

F
(
L
L
(L
E GL DL
(F

(1$QQH[%)OH[LEO\FRQQHFWHGIOH[XUDOPHPEHUV

&URVVVHFWLRQDOYDOXHV%LD[LDOORDGEHDULQJHIIHFWRISDQHOV
$VVXPSWLRQRIWKHUHIHUHQFHOHQJWKV
6LQJOHVSDQJLUGHUV UHI
&RQWLQXRXVJLUGHUV UHI

PLQ

&DQWLOHYHUV

UHI
%XFNOLQJPHPEHUV UHI
PLQ
NL
7KHPRGLILHG*DPPDPHWKRG
)RU FURVVVHFWLRQV ZLWK PRUH WKDQ WKUHH ORQJLWXGLQDO OD\HUV LH VHYHQ RU QLQHOD\HU EXLOGXSV WKH
PRGLILHG*DPPDPHWKRGPXVWEHDSSOLHGDVVWDWHGLQ$QQH[$
$OWHUQDWLYHO\VKHDUGHIRUPDWLRQVFDQEHFRQVLGHUHGYLDDVKHDUIOH[LEOHOD\HUHGEHDPDFFRUGLQJWR
7LPRVKHQNRDVGHVFULEHGLQ$QQH[$
%LD[LDOORDGEHDULQJHIIHFWRISDQHOV
$VPHQWLRQHGLQWKHLQWURGXFWLRQXSRQGHYLDWLRQIURPWKHRXWOLQHFRQGLWLRQVIRUXQLD[LDOORDGGLV
WULEXWLRQ WKH ELD[LDO ORDGEHDULQJ HIIHFW RI SDQHOV PXVW EH FRQVLGHUHG Q WKH IROORZLQJ VXLWDEOH
PRGHOV ZLWK UHVSHFWLYH VWLIIQHVV YDOXHV WR EH DSSOLHG DUH GHVFULEHG LQ RUGHU WR GHWHUPLQH LQWHUQDO
SDQHOIRUFHVIURPWKHLPSDFWV6LQFHWKHGHWHUPLQDWLRQRIVWUHVVHVFRQVLGHULQJWKHLQGLYLGXDOOD\HUV
LVQRWLQFOXGHGLQWKHPRGHOVGHVFULEHGLWLVUHFRPPHQGHGWRSHUIRUPWKHYHULILFDWLRQVLQWKHXOWL
PDWHOLPLWVWDWHVDWLQWHUQDOIRUFHOHYHO
2UWKRWURSLFSDQHOVZLWKHIIHFWLYHWKLFNQHVVHV
7KHHIIHFWLYHPRPHQWVRILQHUWLDLQERWKGLUHFWLRQV \HI
HI DQG [HI
HI DUHGHWHUPLQHGDQGUH
FDOFXODWHGLQWRHIIHFWLYHSDQHOWKLFNQHVVHV G \HI DQG G [HI

)LJXUH6XEVWLWXWHWKLFNQHVVHVIRURUWKRWURSLFSDQHOV

G \HI
HI
G [HI
HI
HI
\HI 0RPHQWRILQHUWLDDERXWDQD[LVWUDQVYHUVHWRWKHPDLQGLUHFWLRQRIORDG

[ ]
EHDULQJFDSDFLW\ FP
HI
[HI 0RPHQWRILQHUWLDDERXWDQD[LVWUDQVYHUVHWRWKHDQFLOODU\GLUHFWLRQRIORDG
[ ]
EHDULQJFDSDFLW\ FP

QPRVW('3SURJUDPPHVWKHWRUVLRQDOVWLIIQHVVRIWKHSDQHOLVUHFDOFXODWHGIURPWKHIOH[XUDOVWLII
QHVVHVDVIROORZV
. [ \
(HI (HI

7KHUHZLWKWKHWRUVLRQDOVWLIIQHVVIRUFURVVODPLQDWHGWLPEHULVHVWLPDWHGWRRKLJK)URPDVFLHQWLIL
FDOO\VDIHSRLQWRIYLHZUHGXFWLRQRIWKLVWRUVLRQDOVWLIIQHVVUHFDOFXODWHGIURPIOH[XUDOVWLIIQHVVHVWR
DERXWIRUWKUHHDQGWRIRUILYHOD\HUVLVUHFRPPHQGHG
)LJXUHQSXWRIVXEVWLWXWHWKLFNQHVVHVLQWZRGLUHFWLRQV

3URJUDPPHV\VWHP5)(0'OXEDO*PE+

2UWKRWURSLFSDQHOVZLWKGLUHFWVWDWHPHQWRIVWLIIQHVVHV

)LJXUH'HVLJQDWLRQRID[HVLQWHUQDOIRUFHVDQGVWUHVVHV

2QWKHEDVLVRIWKH7LPRVKHQNREHDPZLWKWKHVKHDUFRUUHFWLRQFRHIILFLHQWDFFRUGLQJWR$QQH[$
WKH VWLIIQHVVHV RI VKHDUIOH[LEOH SDQHOV FDQ EH GHWHUPLQHG LQGHSHQGHQW RI WKH VWDWLF V\VWHP ZLWK
FURVVVHFWLRQDOYDOXHVLQERWKGLUHFWLRQVDFFRUGLQJWR5HLVVQHU0LQGOLQ
7KHLQGLYLGXDOVWLIIQHVVHVDUHFDOFXODWHGDVIROORZV
.[
'
(PHDQ QHW
[ \ \[
)OH[XUDOVWLIIQHVVLQ[GLUHFWLRQ>N1PtP@
1RUPDOO\ . [ ' (PHDQ HI LVDVVXPHG
.\
'
(PHDQ QHW
[ \ \[
)OH[XUDOVWLIIQHVVLQ\GLUHFWLRQ>N1PtP@
1RUPDOO\ . \ ' (PHDQ HI LVDVVXPHG
'
'
[ \ \[ . [ . \ QIOXHQFHRQWKHEHQGLQJPRPHQWVE\WUDQVYHUVHH[SDQ
VLRQ>N1PtP@1RUPDOO\ . ' ' LVDVVXPHG

[ \ \[ &RHIILFLHQWVRIWUDQVYHUVHH[SDQVLRQRIWLPEHU
1RUPDOO\ [ \ \[ LVDVVXPHG

. [ \
'
WRUV *PHDQ
E G
7RUVLRQDOVWLIIQHVV>N1PtP@

WRUV 5HGXFWLRQIDFWRUIRUUHGXFWLRQRIWRUVLRQDOVWLIIQHVV
6[
'
6\
'

*PHDQ $QHW 6KHDUVWLIIQHVVXSRQVWUHVVE\ Y [] >N1P@
]

]
*PHDQ $ QHW 6KHDUVWLIIQHVVXSRQVWUHVVE\ Y \] >N1P@
] 6KHDUFRUUHFWLRQFRHIILFLHQWDFFRUGLQJWR$QQH[$XSRQFRQVLGHUDWLRQLQWKH
GLUHFWLRQRIWKHWRSOD\HUV
] 6KHDUFRUUHFWLRQFRHIILFLHQWDFFRUGLQJWR$QQH[$XSRQFRQVLGHUDWLRQWUDQV
YHUVHWRWKHWRSOD\HUV

6LOO\:LWKRXWFUDFNVILUVWDIDFWRURILVDVVXPHG&RQVLGHULQJFUDFNVWKHIDFWRULVUHFRP
PHQGHG

7KHVWLIIQHVVPDWUL[WKHQLV
&3DQHO
' '
'
'

=

'

'

'

DQGWKHUHODWLRQEHWZHHQIRUFHVDQGGLVSODFHPHQWVLV
P[
P
\
P
[\ = &3DQHO
Y
[
Y \
[
[
\
X]
[ + \
X]
[
\

2QHH[DPSOHIRULQSXWYLDDXVHULQWHUIDFHLVVKRZQLQ)LJXUH

)LJXUHQSXWRIWKHFRHIILFLHQWVRIWKHVWLIIQHVVPDWUL[IRUSDQHOV
VRIWZDUHSDFNDJH5)(0'OXEDO*PE+

2UWKRWURSLFSDQHOV9HULILFDWLRQ
$V GHVFULEHG LQ 6HFWLRQ LW LV UHDVRQDEOH WR SHUIRUP WKH ORDGEHDULQJ FDSDFLW\ YHULILFDWLRQV IRU
SDQHOV DW WKH LQWHUQDO IRUFH OHYHO 'HVLJQDWLRQV RI WKH LQWHUQDO IRUFHV FDQ EH UHWULHYHG IURP
)LJXUH

6WUHVVLQVHFWLRQVWUDQVYHUVHWRWKHWRSOD\HUPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\[
%HQGLQJPRPHQWV
P[6G P[5G

P[6G 'HVLJQYDOXHRILPSDFWEHQGLQJPRPHQWSHUUXQQLQJPHWUH>N1PP@

P[5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1PP@
P[5G
:QHW IPG
/DWHUDOIRUFHV
Y [ ]6G Y [ ]5G

Y []6G 'HVLJQYDOXHRILPSDFWODWHUDOIRUFHSHUUXQQLQJPHWUH>N1P@

Y [ ]5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1P@
Y [ ]5G
QHW P
65 QHW
I95G
6WUHVV LQ VHFWLRQV LQ WKH GLUHFWLRQ RI WKH WRS OD\HU DQFLOODU\ GLUHFWLRQ RI ORDGEHDULQJ FD
SDFLW\\
%HQGLQJPRPHQWV
P \6G P \5G

P \6G 'HVLJQYDOXHRILPSDFWEHQGLQJPRPHQWSHUUXQQLQJPHWUH>N1PP@

P \5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1PP@
P \5G
: QHW IPG
/DWHUDOIRUFHV
Y \]6G Y \ ]5G

Y \]6G 'HVLJQYDOXHRILPSDFWODWHUDOIRUFHSHUUXQQLQJPHWUH>N1P@

Y \]5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1P@
Y \]5G
QHW P
65 QHW
I95G

7RUVLRQDOVWUHVV
P[ \6G P[ \5G

P[ \6G 'HVLJQYDOXHRILPSDFWWRUVLRQDOPRPHQWSHUUXQQLQJPHWUH>N1PP@

P[ \5G 'HVLJQYDOXHRIUHVLVWDQFHIRUWRUVLRQIRUDRQHPHWUHVWULS>N1PP@
P[ \5G
:7QHW I9G
*ULOODJHPRGHOV
)RUFDOFXODWLRQZLWKDJULOODJHPRGHOFURVVODPLQDWHGWLPEHULVGLYLGHGLQWRDJULGRIPHPEHUV'H
SHQGLQJ RQ VSHFLILFDWLRQV LQ WKH SURGXFW DSSURYDOV ZKLFK PRVWO\ UHIHU WR D URGVKDSHG VWDQGDUG
HOHPHQW D JULG ZLWK WKH ZLGWK RI WKLV UHIHUHQFH PHPEHU QRUPDOO\ FP RU FP LV UHFRP
PHQGHG7KHJULOODJHKDVWREHPRGHOOHGVXFKWKDWWKHVXSSRUWVDUHDUUDQJHGDORQJWKHRXWHUHGJH
RI WKH HOHPHQW DW D GLVWDQFH RI KDOI WKH JULG VL]H E 2QO\ WKHQ WKH VWLIIQHVV RI WKH HGJH JLUGHUV LV
PRGHOOHGFRUUHFWO\
QWKHJULOODJHPRGHOWKHLQIOXHQFHRIWKHUHODWLYHO\ORZWRUVLRQDOVWLIIQHVVRIFURVVODPLQDWHGWLPEHU
LV PRVWO\ QHJOHFWHG HQWLUHO\ 7KLV QRUPDOO\ UHVXOWV LQ VOLJKWO\ ODUJHU GHIOHFWLRQV DQG QR OLIWLQJ IRUFHV
RFFXULQWKHFRUQHUVDVWKH\SUHYDLOZLWKWRUVLRQDOO\VWLIISDQHOV

)LJXUH*ULOODJHPRGHO

6KHDU GHIRUPDWLRQV DUH QRUPDOO\ FRQVLGHUHG YLD WKH HIIHFWLYH PRPHQWV RI LQHUWLD DFFRUGLQJ WR WKH
*DPPDPHWKRG'HWHUPLQDWLRQRIWKHUHIHUHQFHOHQJWKVWDNHVSODFHDFFRUGLQJWRWKHEHDPPRGHO
ZLWKDVVXPSWLRQRIDUHIHUHQFHOHQJWKGHVFULEHGDERYHZKLFKUHVWULFWVDSSOLFDWLRQWRVLPSOHVWDWLF
V\VWHPV )RU FRQWLQXRXV DQG SURMHFWLQJ V\VWHPV LQD ILUVW DSSUR[LPDWLRQ WKH ORZHVW VWLIIQHVV PD\
EHFKRVHQIRUWKHVPDOOHVWUHIHUHQFHOHQJWKWREHDVVXPHG
GHI
G HI
JURVV
HI
JURVV
HI
IRUPHPEHUVLQSDUDOOHOWRWKHWRSOD\HU
IRUPHPEHUVWUDQVYHUVHWRWKHWRSOD\HU
1RWH 8SRQ DXWRPDWLF GHWHUPLQDWLRQ GHILQLWLRQ RI WKH JULOODJH FURVVVHFWLRQV YLD HIIHFWLYH HOHPHQW
KHLJKWVUHVXOWVLQDORZHUGHDGZHLJKWRIWKHSDQHO7KHUHIRUHWKHGHDGZHLJKWKDVWREHGHILQHGDV
DSHUPDQHQWVXSHULPSRVHGORDG

$VDQDOWHUQDWLYHWRVKHDUULJLGPHPEHUVD JULOODJHRIVKHDUIOH[LEOHPHPEHUVPD\EHXVHG7KHQ
VKHDUIOH[LELOLW\FDQEHFRQVLGHUHGYLDDFURVVVHFWLRQZLWKDUHVSHFWLYHVKHDUFRUUHFWLRQFRHIILFLHQW
DFFRUGLQJWR$LQGHSHQGHQWRIWKHVXSSRUWFRQGLWLRQV

5HVXOWVRIWKHJULOODJHFDOFXODWLRQDUHGHIRUPDWLRQVDQGLQWHUQDOIRUFHVLQWKHSDQHOVWULS7KHYHULIL
FDWLRQVRIORDGEHDULQJFDSDFLW\PXVWEHXQGHUWDNHQZLWKWKHQHWFURVVVHFWLRQDOYDOXHVDFFRUGLQJWR
&KDSWHUZLWKWKHZLGWKERIWKHJULGGLYLVLRQ

&URVVVHFWLRQDOYDOXHV3ODWHV
3ODWHV
6KHDUVWLIIQHVV
$FFRUGLQJWR 6LOO\XSRQVWUHVVLQJDVDSODWHWKHVKHDUVWLIIQHVVRIFURVVODPLQDWHGWLPEHUPXVW
EHUHGXFHGFRPSDUHGWRKRPRJHQHRXVPDWHULDO

*6PHDQ
)( PHDQ
D
PHDQ
D
)(
*PHDQ *PHDQ

GPHDQ $YHUDJHERDUGWKLFNQHVVRIWKHFURVVVHFWLRQFRQVLGHUHG

D $VVXPHGERDUGZLGWKPPLVUHFRPPHQGHG

7KHVKHDUVWLIIQHVVRIWKHSODWHUHVXOWVLQ
* $6
*6PHDQ $JURVV

3ODWHVDVRUWKRWURSLFHOHPHQWV

)LJXUHQWHUQDOIRUFHDQGGHVLJQDWLRQVIRURUWKRWURSLFSODWHV

)RUFDOFXODWLRQRIFURVVODPLQDWHGWLPEHUSODWHVRUWKRWURSLFILQLWHHOHPHQWVFDQEHXVHGWKHEHKDY
LRXURIWKHSODWHFDQDOVREHGHILQHGYLDWKHVWLIIQHVVPDWUL[7KHLQGLYLGXDOFRPSRQHQWVRIWKHVWLII
QHVVPDWUL[DUH

'[
'[ \
G (PHDQ $QHW ([WHQVLRQDOVWLIIQHVVLQWKH[GLUHFWLRQ

G
'[ QIOXHQFHRQWKHORQJLWXGLQDOIRUFHVE\WUDQVYHUVHH[SDQ
VLRQ
1RUPDOO\ '[ \
G
LVDVVXPHG
'\
G
(PHDQ $ QHW ([WHQVLRQDOVWLIIQHVVLQWKH\GLUHFWLRQ
'V
G
*6PHDQ $JURVV *PHDQ $JURVV
6KHDUVWLIIQHVVDFFRUGLQJWR

7KHVWLIIQHVVPDWUL[RIWKHSODWHWKHQLV
&3ODWH
G G
= G G

G

DQGWKHUHODWLRQEHWZHHQIRUFHVDQGGLVWDQFHVLV
Q[

Q\
Q
[\
X[
X \
= &3ODWH

\
X[ X \
\ [
2QHH[DPSOHIRULQSXWYLDDXVHULQWHUIDFHLVVKRZQLQ)LJXUH

)LJXUHQSXWRIWKHFRHIILFLHQWVRIWKHVWLIIQHVVPDWUL[IRUSODWHV
VRIWZDUHSDFNDJH5)(0'OXEDO*PE+

3ODWHVDVRUWKRWURSLFHOHPHQWV9HULILFDWLRQ
$VGHVFULEHGLQ6HFWLRQLWLVUHDVRQDEOHWRSHUIRUPORDGEHDULQJFDSDFLW\YHULILFDWLRQVIRUSODWHV
DWLQWHUQDOIRUFHOHYHO'HVLJQDWLRQVRIWKHLQWHUQDOIRUFHVFDQEHUHWULHYHGIURP)LJXUH

$[LDOIRUFHVLQVHFWLRQVWUDQVYHUVHWRWKHWRSOD\HUPDLQGLUHFWLRQRIORDGEHDULQJFDSDF
LW\[
Q[6G Q[5G

Q[6G 'HVLJQYDOXHRILPSDFWD[LDOIRUFHSHUUXQQLQJPHWUH>N1P@

Q[5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1P@
ZLWKWHQVLOHVWUHVV Q[5G
$QHW IW G
ZLWKFRPSUHVVLYHVWUHVV Q[5G
$QHW IF G
$[LDOIRUFHVLQVHFWLRQVLQWKHGLUHFWLRQRIWKHWRSOD\HUDQFLOODU\GLUHFWLRQRIORDGEHDULQJ
FDSDFLW\\
Q\6G Q\5G

Q \6G 'HVLJQYDOXHRILPSDFWD[LDOIRUFHSHUUXQQLQJPHWUH>N1P@

Q \5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1P@
ZLWKWHQVLOHVWUHVV Q\5G
$ QHW IW G
ZLWKFRPSUHVVLYHVWUHVV Q\5G
$ QHW IF G
/DWHUDOIRUFHV
Q[ \6G Q[ \5G
Q[ \5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1P@

)RUYHULILFDWLRQVRISODWHVVXEMHFWWRVKHDUVHH6HFWLRQSDJH

8OWLPDWHOLPLWVWDWHV'HVLJQVLWXDWLRQ
8OWLPDWHOLPLWVWDWHV
'HVLJQVLWXDWLRQ
QWKHXOWLPDWHOLPLWVWDWHLWPXVWEHYHULILHGWKDWDWDQ\SRLQWWKHGHVLJQYDOXHRIVWUHVVLVVPDOOHU
WKDQ WKH GHVLJQ YDOXH RI UHVLVWDQFH DV GHVFULEHG LQ 6HFWLRQ 'HVLJQ FRQFHSW %HVLGH WKH FURVV
VHFWLRQDOORDGEHDULQJFDSDFLW\DWVWUHVVOHYHOVWDELOLW\IDLOXUHOLNHEXFNOLQJDQGWLOWLQJDQGIDVWHQHUV
PXVWEHDQDO\VHGLQWKHXOWLPDWHOLPLWVWDWHV
'HVLJQVLWXDWLRQ
5DUHGHVLJQVLWXDWLRQ
(G
L
*N M 4 4N
L !
4L
L 4NL

9HULILFDWLRQ
(G
5G
(G
NPRG
5N
P

7DEOH3DUWLDOVDIHW\IDFWRUVLQWKHXOWLPDWHOLPLWVWDWH
6WDWLFHTXLOLEULXP
3HUPDQHQWLPSDFWV
GHDGZHLJKWVSHUPDQHQWVXSHULPSRVHGORDGV
/HDGLQJYDULDEOHLPSDFWV
OLYHORDGVVQRZZLQG
XQIDYRXUDEOH
IDYRXUDEOH
GHVWDELOLVLQJ
VWDELOLVLQJ
VXSHULRU
LQIHULRU
* VXS
* LQI

4 VXS
4 LQI

8OWLPDWHOLPLWVWDWHV7HQVLRQLQWKHHOHPHQWSODQH
7HQVLRQLQWKHHOHPHQWSODQH
7HQVLRQLQWKHGLUHFWLRQRIWKHWRSOD\HUV

WG
1G
$ QHW
IWG
NPRG N V\V
IWN

N V\V 6\VWHPFRHIILFLHQWDFFRUGLQJWR6HFWLRQ

)LJXUH7HQVLRQLQWKHGLUHFWLRQRIWKHWRSOD\HUV

8OWLPDWHOLPLWVWDWHV7HQVLRQWUDQVYHUVHWRWKHHOHPHQWSODQH
7HQVLRQLQWKHGLUHFWLRQRIWKHWUDQVYHUVHOD\HUV

W G
1 G
$ QHW
IW G
NPRG N V\V
IW N

)LJXUH7HQVLRQLQWKHGLUHFWLRQRIWKHWUDQVYHUVHOD\HUV
7HQVLRQWUDQVYHUVHWRWKHHOHPHQWSODQH
8SRQ FRQQHFWLRQ RI WHQVLOH IRUFHV WUDQVYHUVH WR WKH HOHPHQW SODQH WKH ORZ
WUDQVYHUVH WHQVLOH ORDGEHDULQJ FDSDFLW\ PXVW EH REVHUYHG %HVW VXLWHG DUH
FRQQHFWLRQV ZLWK ZKLFK WKH IRUFH LV WUDQVIHUUHG WKURXJK WKH HOHPHQW DQG ORDG
DSSOLFDWLRQ WDNHV SODFH XQGHU SUHVVXUH RQ WKDW VLGH RI WKH HOHPHQW IDFLQJ DZD\
IURPWKHWHQVLOHIRUFH
QFDVHRIDORZHUORDGOHYHOIXOO\WKUHDGHGVFUHZVDUHVXLWHGZKLFKDUHVFUHZHGLQWRWKHHQWLUHHOH
PHQWWKLFNQHVVLISRVVLEOH7KHFRQQHFWLRQVGHVFULEHGDUHVKRZQLQ)LJXUH
&RQQHFWLRQVVXEMHFWWRWHQVLRQPXVWEHDQDO\VHGLQWKHLQGLYLGXDOFDVH

)LJXUH'HVLJQVXJJHVWLRQVIRUVXVSHQGLQJORDGV

8OWLPDWHOLPLWVWDWHV3UHVVLQJRIWKHIURQWIDFHV
3UHVVLQJRIWKHIURQWIDFHV
&RPSUHVVLYHIRUFHVWRWKHODWHUDOIDFHVDUHDEVRUEHGE\HQGSUHVVLQJRIWKHERDUGOD\HUVUXQQLQJLQ
WKHGLUHFWLRQ RIIRUFH)RUIXUWKHUWUDQVIHURIORFDOO\LQWURGXFHGORDGVSRVVLEOHIDLOXUHPHFKDQLVPV
GXHWRVKHDULQJVWUHVVRUVWDELOLW\SUREOHPVPXVWEHFRQVLGHUHG
3UHVVXUHLQWKHGLUHFWLRQRIWKHWRSOD\HUV
F G
1 G
$ QHW
IF G
NPRG
IF N

$QHW
E GQHW (QGSUHVVLQJDUHD

)LJXUH(QGSUHVVLQJZLWKSUHVVLQJDUHDRIWKHYHUWLFDOOD\HUV

1RWH/RDGSURSDJDWLRQLQWRWKHHOHPHQWLVGLVFXVVHGLQ6HFWLRQ6KHDUZDOOV

3UHVVXUH LQ WKH GLUHFWLRQ RI WKH WUDQVYHUVH

OD\HUV
F G
1 G
$ QHW
IF G
NPRG
IF N

$ QHW
E G QHW (QGSUHVVLQJDUHD

)LJXUH(QGSUHVVLQJZLWKSUHVVLQJDUHDRIWKHYHUWLFDOOD\HUV

3UHVVLQJWUDQVYHUVHWRWKHHOHPHQWSODQH
F G
1 G
N F $HI
IF G
N PRG
IF N

)LJXUH$UHDVIRUSUHVVLQJRIWKHHOHPHQWVXUIDFHZLWKDVVRFLDWHGFRHIILFLHQWVDQG
HIIHFWLYHFRQWDFWDUHDV

$HI
(IIHFWLYHFRQWDFWDUHDXSRQFRPSUHVVLYHVWUHVVRQWKHHOHPHQWVXUIDFH
QWKHGLUHFWLRQRIILEUHRIWKHWRSOD\HUVWKHFRQWDFWOHQJWKPD\EHLQFUHDVHGE\PPRQ
ERWKVLGHVLIDWOHDVWPPRIVWHSMRLQWWLPEHUDUHSUHVHQWVHH(16HFWLRQDV
VKRZQLQ)LJXUH
NF
&RHIILFLHQWIRUFRQVLGHUDWLRQRIWKHRXWOLQHFRQGLWLRQV

7R SXQFWLIRUP ORDG DSSOLFDWLRQ DSSO\ WKH FRHIILFLHQWV DFFRUGLQJ WR %RJHQVSHUJHUHW DO VKRZQ LQ
)LJXUH
NF
)RUVXSSRUWDZD\IURPWKHHGJH D G
NF
)RUVXSSRUWDWWKHHGJHDQGLQWKHFRUQHU


)LJXUH/RDGDSSOLFDWLRQLQWRDFHLOLQJHOHPHQW

8OWLPDWHOLPLWVWDWHV%HQGLQJGXHWRSDQHOORDG
%HQGLQJGXHWRSDQHOORDG
%HQGLQJLQWKHPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\
P G
0 G
: QHW
I P G
NPRG N V\V
I P N

)LJXUH%HQGLQJLQWKHPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\

%HQGLQJLQWKHDQFLOODU\GLUHFWLRQRIORDGEHDULQJFDSDFLW\
P G
0 G
: QHW
IPG
NPRG N V\V
IPN

)LJXUH%HQGLQJLQWKHDQFLOODU\GLUHFWLRQRIORDGEHDULQJFDSDFLW\

8OWLPDWHOLPLWVWDWHV%HQGLQJXSRQVWUHVVLQJDVDQXSULJKWJLUGHU
%HQGLQJXSRQVWUHVVLQJDVDQXSULJKWJLUGHU
7RSOD\HULQWKHGLUHFWLRQRIORDGEHDULQJ
FDSDFLW\

)LJXUH%HQGLQJVWUHVVIRUJLUGHUVZLWKDWRSOD\HULQWKHGLUHFWLRQRIORDGEHDULQJFDSDFLW\

P ] G
0 ] G
:] QHW
:] QHW
IP G
IP N
NPRG
K

QWKDWLWLVDVVXPHGWKDWDVLQWKHFXUUHQWO\YDOLGSURGXFWDSSURYDOVWKHERDUGVRIDOOOD\HUVXQGHU
VWUHVVDUHFRQQHFWHGE\ILQJHUMRLQWVEOXQWMRLQWVDUHLQDGPLVVLEOH5HGXFWLRQVLQFURVVVHFWLRQPXVW
EHREVHUYHG

1RWH:LWKDGHFOLQLQJ K UDWLRWKHEHDPWKHRU\DVVXPLQJOLQHDUVWUHVVGLVWULEXWLRQQRORQJHUDS
SOLHV7KHWHQVLRQ]RQHEHFRPHVORZHUWKHSUHVVXUH]RQHKLJKHU7KLVGHYLDWLRQEHFRPHVQRWLFHDEOH
IURP K RQDWOHDVWIURP K LWVKRXOGEHFRQVLGHUHG$OVRVHH6HFWLRQ6KHDUZDOOV

8OWLPDWHOLPLWVWDWHV%HQGLQJXSRQVWUHVVLQJDVDQXSULJKWJLUGHU
7RSOD\HUWUDQVYHUVHWRWKHGLUHFWLRQRIORDGEHDULQJFDSDFLW\

)LJXUH%HQGLQJVWUHVVIRUJLUGHUVZLWKDWRSOD\HUWUDQVYHUVHWRWKHGLUHFWLRQRIORDGEHDULQJFDSDF
LW\
P ] G
0 ] G
:] QHW
:] QHW
IP G
NPRG

K
IP N

QWKDWLWLVDVVXPHGWKDWDVLQWKHFXUUHQWO\YDOLGSURGXFWDSSURYDOVWKHERDUGVRIDOOOD\HUVXQGHU
VWUHVVDUHFRQQHFWHGE\ILQJHUMRLQWVEOXQWMRLQWVDUHLQDGPLVVLEOH5HGXFWLRQVLQFURVVVHFWLRQPXVW
EHREVHUYHG

1RWH:LWKDGHFOLQLQJ K UDWLRWKHEHDPWKHRU\DVVXPLQJOLQHDUVWUHVVGLVWULEXWLRQQRORQJHUDS
SOLHV7KHWHQVLRQ]RQHEHFRPHVORZHUWKHSUHVVXUH]RQHKLJKHU7KLVGHYLDWLRQEHFRPHVQRWLFHDEOH
IURP K RQDWOHDVWIURP K LWVKRXOGEHFRQVLGHUHG$OVRVHH6HFWLRQ6KHDUZDOOV

8OWLPDWHOLPLWVWDWHV6KHDUXSRQVWUHVVLQJDVDSDQHO
6KHDUXSRQVWUHVVLQJDVDSDQHO
6KHDULQWKHPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\

)LJXUH6KHDULQWKHPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\
9 5 G
9 G 6 5 QHW
QHW E
I9 5 G
N PRG
I9 5 N

QVRPHFDVHVHTXLYDOHQWVKHDUDUHDV $5QHW DUHVWDWHGLQRUGHUWRSHUIRUPWKHYHULILFDWLRQRIVKHDU
FDSDFLW\DQDORJRXVO\WRWKHUHFWDQJXODUFURVVVHFWLRQ7KHYHULILFDWLRQHTXDWLRQWKHQLV

9G
$QHW
I95G

QWKDW $QHW ZDVUHFDOFXODWHGDVIROORZV

$QHW
QHW E
65QHW

1RUPDOO\WKHUROOLQJVKHDUVWUHQJWKRIWKHWUDQVYHUVHOD\HUFORVHVWWRWKHFHQWUHRIJUDYLW\LVGHFLVLYH
)RU FURVVODPLQDWHG WLPEHU HOHPHQWV ZLWK VSHFLDO EXLOGXSV WKH VKHDU VWUHQJWK RI WKH ORQJLWXGLQDO
OD\HUVPXVWEHDGGLWLRQDOO\FKHFNHG
9G
9G 6 9QHW
QHW E
I9G
N PRG

I9N
0

1RWH8VLQJWKHFUDFNIDFWRU NFU LVQRWQHFHVVDU\VLQFHFURVVODPLQDWHGWLPEHULVDWZRGLPHQVLRQDO
HOHPHQW ZLWK DQ LQWHUORFNHG EXLOGXS DQG SRVVLEOH FUDFNV DUH DVVXPHG FRQVLGHUHG YLD WKH SURGXFW
DSSURYDOV

8OWLPDWHOLPLWVWDWHV6KHDUXSRQVWUHVVLQJDVDSDQHO
6KHDULQWKHDQFLOODU\GLUHFWLRQRIORDGEHDULQJFDSDFLW\
95G
9 G 6 5QHW
QHW E
I95G
NPRG

I95N
P

7KHFRPPHQWVRQVKHDULQWKHPDLQGLUHFWLRQVRIORDGEHDULQJFDSDFLW\DSSO\DFFRUGLQJO\

8OWLPDWHOLPLWVWDWHV6KHDUXSRQVWUHVVLQJDVDSODWH
6KHDUXSRQVWUHVVLQJDVDSODWH
0HFKDQLVPVIRUORDGEHDULQJFDSDFLW\
7KH VXJJHVWHG IDLOXUH PHFKDQLVPV ZHUH WDNHQ IURP WKH FXUUHQW SURGXFW
DSSURYDOVDQGGRFXPHQWV

6FKLFNKRIHUHWDO GHYHORSHGDQDOWHUQDWLYHGHVLJQPRGHOQRWVWDWHGLQWKHSUHVHQWJXLGHOLQH

ZKLFKFRQVLGHUVWKHVWUHVVHVLQFDVHVRIKLJKO\GLIIHUHQWOD\HUWKLFNQHVVHVPRUHH[DFWO\

)LJXUH6KHDUZLWKLQDVKHDUZDOO

0HFKDQLVP6KHDULQJRIIIDLOXUHRIWKHERDUGVDORQJDMRLQW

)LJXUH6KHDULQJRIIIDLOXUHRIWKHERDUGVDORQJDMRLQW

&KDSWHU

8OWLPDWHOLPLWVWDWHV6KHDUXSRQVWUHVVLQJDVDSODWH
96G I96G
96G

7

$6QHW

$ QHW
$6 = PLQ

$ QHW

0HFKDQLVP6KHDULQJIDLOXUHRIWKHJOXHGVXUIDFHVLQWKHLQWHUVHFWLRQSRLQWV

)LJXUH6KHDULQJIDLOXUHRIWKHJOXHGVXUIDFHVLQWKHLQWHUVHFWLRQSRLQWV

7G I97G
7G
07 D
3

07
D
D
QN

07

QN D

07
S
7 K 0RPHQWVKHDUIRUFH7WLPHVGLVWDQFHKWRWKHMRLQWFRQVLGHUHG
D
3RODUPRPHQWRILQHUWLDRIDVTXDUHLQWHUVHFWLRQILHOG

D %RDUGZLGWK
DFFRUGLQJWRSURGXFWVWDQGDUGD PPWRPPUHFRPPHQGHG
D PP
QN 1XPEHURIJOXHGVXUIDFHV
QN
QV Q I
QV 1XPEHURIJOXHGMRLQWVEHWZHHQOD\HUVSRVLWLRQHGQRUPDOWRRQHDQRWKHU
HJ Q V
IRUDWKUHHOD\HUHOHPHQW
Q I 1XPEHURILQWHUVHFWLRQILHOGV

8OWLPDWHOLPLWVWDWHV7RUVLRQXSRQVWUHVVLQJDVDSDQHO
0HFKDQLVP6KHDUIDLOXUHRIWKHHQWLUHSODWH

)LJXUH6KHDUIDLOXUHRIWKHHQWLUHSODWH

9G I9G
9G

7

$JURVV

1RWHQFDVHRIORFDOORDGDSSOLFDWLRQSUREOHPVLQDGGLWLRQWRVKHDULQJRIIRIERDUGOD\HUVIDLOXUH
E\H[FHHGLQJRIWKHUROOLQJVKHDUVWUHQJWKPD\RFFXU5ROOLQJVKHDUVWUHVVRFFXUVLQWKHJOXHGMRLQWV
EHWZHHQWKRVHOD\HUVLQWRZKLFKWKHORDGLVDSSOLHGDQGWKHOD\HUVRULHQWHGWUDQVYHUVHWKHUHWRYLD
ZKLFKWKHORDGLVWUDQVIHUUHGIXUWKHU
7RUVLRQXSRQVWUHVVLQJDVDSDQHO

7 G
07 G
:7
I7 G
I7 N

1RWH8SRQPRGHOOLQJDVDQRUWKRWURSLFSDQHOWKHRFFXUULQJLQWHUQDOWRUVLRQDOIRUFHVP[\GHSHQGRQ
WKHWRUVLRQDOVWLIIQHVV7KHWRUVLRQDOVWLIIQHVVRIFURVVODPLQDWHGWLPEHULVGLVFXVVHGLQ6HFWLRQ
QSUDFWLFDOVWUXFWXUDOGHVLJQDORZWRUVLRQDOVWLIIQHVVRIDERXWRUOHVVLVDSSOLHGIRUGLPHQVLRQ
LQJ

8OWLPDWHOLPLWVWDWHV6WDELOLW\
6WDELOLW\
%XFNOLQJXSRQSUHVVXUHLQWKHGLUHFWLRQRIWKHWRSOD\HUV
%XFNOLQJIURPWKHHOHPHQWSODQH

)LJXUH%XFNOLQJIURPWKHHOHPHQWSODQH

F G
NF \ IF G
PG
IPG

1G
0G
$QHW
:
QHW
NF \ IF G
IPG

L \ HI

\ HI
$QHW

NL
L \ HI

7KHUHLQDUH
NF \ %XFNOLQJFRHIILFLHQW
NF \

N \ N \ UHO
\
N \ %XFNOLQJFRHIILFLHQW
N\
[(
)]

F UHO \ UHO
\
F &RHIILFLHQWRILPSHUIHFWLRQ
F
IRUFURVVODPLQDWHGWLPEHU
UHO \ 5HODWLYHGHJUHHRIVOHQGHUQHVVIRUODWHUDOEXFNOLQJDERXWWKH\D[LV
UHO \
IF N
(
7DEOH%XFNOLQJFRHIILFLHQWVNF\IRUFURVVODPLQDWHGWLPEHU

2XWOLQHFRQGLWLRQV( 1PPtF
QJHQHUDOLQFDVHRIEXFNOLQJWKHVKHDUIOH[LELOLW\RIWKHWUDQVYHUVHOD\HUVPXVWEHFRQVLGHUHG6LQFH
WKHLULQIOXHQFHKRZHYHUQRUPDOO\LVEHORZKHUHLWZDVQHJOHFWHG
)RUVWUXFWXUDOGHVLJQDFFRUGLQJWRWKHVXEVWLWXWHPHPEHUPHWKRGGHVFULEHGDOLPLWVOHQGHUQHVVRI
\ OLP
PXVWEHFRPSOLHGZLWK)RUWKHHYHQWRIILUHDOLPLWVOHQGHUQHVVRI \ IL ILOLP
LV
UHFRPPHQGHG
1RWH/RDGSURSDJDWLRQRIORFDOSRLQWORDGVDQGVXSSRUWVLVGLVFXVVHGLQ6HFWLRQ6KHDUZDOOV

%XFNOLQJRIZDOOFROXPQV
8SRQH[HFXWLRQRIYHU\QDUURZZDOOFROXPQVLWPXVWEHFKHFNHGZKHWKHUEXFNOLQJLQWKHHOHPHQW
SODQHLHDERXWWKH]D[LVEHFRPHVGHFLVLYH

)LJXUH$[LVGHVLJQDWLRQV

%XFNOLQJXSRQSUHVVXUHLQWKHGLUHFWLRQRIWKHWUDQVYHUVHOD\HUV
$QDORJRXVO\ WR 6HFWLRQ ZLWK UDGLXV RI LQHUWLD DQG VOHQGHUQHVV IRU WKH DQFLOODU\ GLUHFWLRQ RI
ORDGEHDULQJFDSDFLW\WKHIROORZLQJDSSOLHV
\ HI
L \ HI
\
$ QHW
NL
L \ HI

7LOWLQJRIXSULJKWFURVVODPLQDWHGWLPEHUJLUGHUV
QFDVHRIQDUURZJLUGHUVVXEMHFWWREHQGLQJWLOWLQJLH\LHOGLQJRIWKHFRPSUHVVLRQIODQJHPD\RF
FXUDVVWDELOLW\IDLOXUHZLWKDFRPELQDWLRQRISUHVVXUHDQGEHQGLQJWKLVLVFDOOHGLQWRUVLRQ

)LJXUH7LOWLQJRIDQXSULJKWFURVVODPLQDWHGWLPEHUJLUGHU
7KH WRS IODQJH LQ WKH VSDQ DQG WKH ERWWRP IODQJH DFURVV VXSSRUWV RI FRQWLQXRXV JLUGHUV LH WKDW
SDUWRIFURVVODPLQDWHGWLPEHUJLUGHUVVXEMHFWWRSUHVVXUHVKRXOGLISRVVLEOHEHFRQWLQXRXVO\KHOG
DJDLQVWODWHUDO\LHOGLQJ
IWKHFRPSUHVVLRQIODQJHLVKHOGRQO\LQDSXQFWLIRUPPDQQHUDVVKRZQLQ)LJXUHWKHQWLOWLQJ

YHULILFDWLRQ DFFRUGLQJ (XURFRGH PXVW EH SHUIRUPHG ZLWK WKH WRUVLRQDO PRPHQW RI LQHUWLD RI WKH
FLUFXPVFULEHGUHFWDQJOHGHVFULEHGLQ7KHHIIHFWLYHWLOWLQJOHQJWKGHSHQGVRQWKHKHLJKWRIWKH
ORDGDSSOLFDWLRQDWWKHWRSRUDWWKHERWWRPRIWKHJLUGHUDQGRQWKHPRPHQWGLVWULEXWLRQDORQJWKH
JLUGHU

QWRUVLRQDFFRUGLQJWR(16HFWLRQ

&OHYLVEHDULQJ
7RJLUGHUVFRQWLQXRXVO\KHOGDJDLQVWWLOWLQJ NFULW DSSOLHV7KHQWKHFOHYLVEHDULQJKDVWREHGLPHQ
VLRQHGIRUWKHGHVLJQYDOXHRIWKHWRUVLRQDOPRPHQW
7G
0G

0G /DUJHVWEHQGLQJPRPHQWLQWKHJLUGHU

7LOWLQJEUDFNHW

$FFRUGLQJWR(XURFRGH WKHKRUL]RQWDOXQLIRUPO\GLVWULEXWHGORDGWREHDEVRUEHGE\WLOWLQJEUDFN
HWVFDQEHGHWHUPLQHGDVIROORZV
T]G
( NFULW ) 0G
PLQ
Q

K

NFULW &RHIILFLHQWRIWLOWLQJIRUFRQVLGHUDWLRQRIWKHDGGLWLRQDOVWUHVVHVDVDFRQVHTXHQFHRIODW
HUDO\LHOGLQJXSRQDVVXPSWLRQRIPLVVLQJWLOWLQJEUDFNHWVLQWKHVSDQ

:LWK SUDFWLFDO FRQVWUXFWLRQ GLPHQVLRQV DVVXPSWLRQ P K
G

K
DQG FURVVVHFWLRQDO YDO

XHVGHVFULEHGLQWKLVJXLGHOLQHWKHKROGLQJIRUFHZLWK NFULW FDQEHOLPLWHGDVIROORZV

T]G
0G
Q
K

Q 1XPEHURIJLUGHUV
/HQJWKRIWKHEUDFLQJ>P@
K *LUGHUKHLJKW>P@
0G /DUJHVWEHQGLQJPRPHQWLQWKHJLUGHU
%XOJLQJ
:DOOVOLQHDUO\VXSSRUWHGRYHUWKHLUHQWLUHOHQJWKPXVWEHWUHDWHGDVZDOOVWULSVRIEXFNOLQJPHPEHUV
7KHVWDELOLVLQJHIIHFWRIWUDQVYHUVHZDOOVLVQRUPDOO\VHWDVLGH
6KHDU ZDOOV VXSSRUWHG LQ D SXQFWLIRUP PDQQHU FDQ XQGHU WKH DVVXPSWLRQ RI D ORDG SURSDJDWLRQ
DQJOHDFFRUGLQJWR6HFWLRQOLNHZLVHEHFRQVLGHUHGDVZDOOVWULSVDQGYHULILHGDVEXFNOLQJPHP
EHUV 2FFDVLRQDOO\ WKLV UHVXOWV LQ YHU\ FRQVHUYDWLYH GHVLJQ UHVXOWV 7KH H[DFW FRQVLGHUDWLRQ RI WKH
WZRGLPHQVLRQDOEXOJLQJIDLOXUHSURYLGHVFRQVLGHUDEO\ODUJHUORDGEHDULQJUHVHUYHVWKDQWKHDQDO\VLV
RIZDOOVWULSVIRUEXFNOLQJLI]RQHVVXEMHFWWRSUHVVXUHDQGWHQVLRQDUHORFDWHGQH[WWRRQHDQRWKHU

%UDFLQJDFFRUGLQJWR(16HFWLRQ

8OWLPDWHOLPLWVWDWHV&RPELQHGVWUHVV
&RPELQHGVWUHVV
%HQGLQJDQGSUHVVXUH
:LWKRXWEXFNOLQJULVN
F G
IF G
1 G
$ QHW IF G
P G
IP G
0G
+
: QHW IP G

%HQGLQJLQWZRGLUHFWLRQVRIORDGEHDULQJFDSDFLW\
'LVWULEXWLRQ RI WKH LQWHUQDO SDQHO IRUFHV LQ WKH SDQHO PXVW EH GHWHUPLQHG FRQVLGHULQJ WKH ELD[LDO
ORDGEHDULQJHIIHFWDQGRQHRIWKHPRGHOVGHVFULEHGLQ6HFWLRQ

%HQGLQJVWUHVVHV
$VVKRZQLQ)LJXUHEHQGLQJPRPHQWVLQVHFWLRQVORQJLWXGLQDO[RUrUHVSDQGWUDQVYHUVHWR
WKHWRSOD\HU\RUrUHVSUHVXOWLQVWUHVVHVLQGLIIHUHQWERDUGOD\HUV7KHUHIRUHYHULILFDWLRQRIWKH
EHQGLQJVWUHVVHVFDQEHXQGHUWDNHQVHSDUDWHO\IRUERWKGLUHFWLRQV

)LJXUHQGHSHQGHQWVWUHVVHVE\EHQGLQJDERXWPDLQDQGDQFLOODU\D[HV
6KHDULQJVWUHVVHV
)LJXUH VKRZV VKHDULQJ VWUHVVHV IRU D SDQHO HOHPHQW DQG IRU DQ HQODUJHG ERDUG VHFWLRQ )URP
WKHGXDOLW\RIWKHVKHDULQJVWUHVVHVUHVXOWVWKHKLJKHVWVKHDULQJVWUHVVE\JHRPHWULFDODGGLWLRQ:LWK
VXIILFLHQW DFFXUDF\ YHULILFDWLRQ LQ WKH WZR GLUHFWLRQV RI ORDGEHDULQJ FDSDFLW\ FDQ EH XQGHUWDNHQ
VHSDUDWHO\


)LJXUH6KHDUVWUHVVLQWKHWZRGLUHFWLRQVRIORDGEHDULQJFDSDFLW\

2EOLTXHEHQGLQJ
IFURVVODPLQDWHGWLPEHUHOHPHQWVZLWKDQLQFOLQHGORQJLWXGLQDOD[LVDUHXVHGDVIRUH[DPSOHURRI
HOHPHQWVRISLWFKHGURRIVWKHQDVDFRQVHTXHQFHRIYHUWLFDOORDGWKHVWUHVVFRQVLVWVRIRQHSRU
WLRQRISDQHOEHQGLQJ\DQGRQHSRUWLRQRIXSULJKWEHQGLQJ]7KHEDVLFVWUHVVFXUYHVDUHVKRZQLQ
)LJXUH
P \ G + P ] G
0 \ G
:\ QHW
0] G
:] QHW
IPG
NPRG
IPN

:LWKWKHFURVVVHFWLRQDOYDOXHVDFFRUGLQJWR6HFWLRQVDQG

)LJXUH2EOLTXHEHQGLQJRIDFURVVODPLQDWHGWLPEHUHOHPHQWDUUDQJHGLQDQLQFOLQHGIDVKLRQ

8OWLPDWHOLPLWVWDWHV1RWFKHV
1RWFKHV

)RUQRWFKHVVWUXFWXUDOGHVLJQRQWKHEDVLVRI(XURFRGH LVVXJJHVWHGWKDVWREHSRLQWHGRXWWKDW
LQWKHQDWLRQDODSSOLFDWLRQGRFXPHQW1250%VHSDUDWHYHULILFDWLRQVDUHGHPDQGHG
IRUFURVVODPLQDWHGWLPEHU
)RUXQUHLQIRUFHGRSHQLQJVLWPXVWEHYHULILHGWKDW
9G
N9 I95G
E KHI

ZLWKWKHFRHIILFLHQWRIUHGXFWLRQIRUQRWFKHGIOH[XUDOPHPEHUVDFFRUGLQJWR(1
NQ
N9
[

K ( )

KHI
K

&RHIILFLHQWRISURSRUWLRQ
)RUWKHPDWHULDOGHSHQGHQWFRHIILFLHQW NQ IRUODPLQDWHGYHQHHUOXPEHULVVXJJHVWHG

I WKH YHULILFDWLRQ LV QRW IXOILOOHG WKHQ UHLQIRUFHPHQWV PXVW EH DUUDQJHG DV E\ ZD\ RI H[DPSOH
VKRZQLQ)LJXUH7KHFRXUVHRIWKHWUDQVYHUVHWHQVLOHVWUHVVHVLVVKRZQLQ)LJXUHIRUDILYH
OD\HUHOHPHQWDVDQH[DPSOH)RUFURVVODPLQDWHGWLPEHUFXUUHQWO\WKHUHDUHQRPRUHH[DFWDQDO\
VHVRQQRWFKHVSUHVHQWDQGPRUHH[DFWDQDO\VHVDUHQHFHVVDU\IRUH[DPSOHE\PHDQVRIWKHILQLWH
HOHPHQWPHWKRG7KHWUDQVYHUVHWHQVLOHIRUFHWREHDEVRUEHGOLHVEHWZHHQWKHIXOOODWHUDOIRUFH 9G
DQGWKHWUDQVYHUVHWHQVLOHIRUFHWREHDEVRUEHGE\WKHUHLQIRUFHPHQWLQFDVHRIKRPRJHQHRXVLH
QRQOD\HUHGFURVVVHFWLRQVDFFRUGLQJWR&(1
9G ( ) ( ) 9G
)W G

KHI
K
&RHIILFLHQWRISURSRUWLRQ
KHI +HLJKWRIWKHUHVLGXDOFURVVVHFWLRQDERYHWKHVXSSRUW

K 2YHUDOOKHLJKW

)LJXUH%DVLFFXUYHRIWKHWUDQVYHUVHWHQVLOHVWUHVVHVIRUQRWFKHV

(16HFWLRQ

8OWLPDWHOLPLWVWDWHV1RWFKHV

)LJXUH7UDQVYHUVHWHQVLOHUHLQIRUFHPHQWRIWKHQRWFK

)LJXUH5HODWLRQEHWZHHQQRWFKUDWLRDQGWUDQVYHUVHWHQVLOHIRUFH

6HUYLFHDELOLW\OLPLWVWDWHV'HVLJQVLWXDWLRQ
'HVLJQVLWXDWLRQ
Q WLPEHU FRQVWUXFWLRQ YHULILFDWLRQV RI VHUYLFHDELOLW\ DUH XQGHUWDNHQ LQ WKH FKDUDFWHULVWLF DQG WKH
TXDVLSHUPDQHQWGHVLJQVLWXDWLRQ
7KHSRUWLRQVRIGHIOHFWLRQIURPWKHLQGLYLGXDOLPSDFWVPXVWEHVXSHUSRVHGIRUWKHUHVSHFWLYHGHVLJQ
VLWXDWLRQDFFRUGLQJWR (1DQG (17KHSRUWLRQRIGHIRUPDWLRQIURPGHDGZHLJKWPD\EH
RPLWWHGIRUYHULILFDWLRQVLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQ)RUWKDWWKHUHDUHGLIIHUHQWLQWHUSUH
WDWLRQV RI WKH (XURFRGHV DQG GLIIHUHQW QDWLRQDO GHWHUPLQDWLRQV $V D FRQVHTXHQFH WKLV UHVXOWV LQ
GLIIHUHQFHVLQWKHRYHUDOOGHIOHFWLRQVXVHGIRUWKHYHULILFDWLRQV
QWKHSUHVHQW JXLGHOLQH DVDFRQVHUYDWLYHDVVXPSWLRQGHDGZHLJKWGHIRUPDWLRQLVDOZD\VFRQVLG
HUHG
/LPLWDWLRQRIGHIOHFWLRQV
:LWKWKHOLPLWDWLRQRIYHUWLFDOGHIOHFWLRQVWZRDLPVDUHSXUVXHG2QWKHRQHKDQGWKHDSSHDUDQFHLV
WREHPDLQWDLQHGDQGRQWKHRWKHUKDQGGDPDJHVWRVXERUGLQDWHVWUXFWXUDOHOHPHQWVRUOLPLWDWLRQV
RIXVHE\GHIRUPDWLRQVDUHWREHDYRLGHG
Q(XURFRGH(1WKHSHUPLWWHGGHIOHFWLRQUDQJHVDUHOLPLWHG:LWKLQWKHVHUDQJHVOLPLWGH
IOHFWLRQVDUHGHWHUPLQHGLQWKHQDWLRQDODSSOLFDWLRQGRFXPHQWV)RUHYHU\SURMHFWVHUYLFHDELOLW\FUL
WHULD VKRXOG EH GHWHUPLQHG DFFRUGLQJ WR WKH UHTXLUHPHQWV IRU XWLOLVDWLRQ DQG DJUHHG ZLWK WKH

EXLOGHURZQHU

(QGGHIOHFWLRQ
(QGGHIOHFWLRQUHVXOWVIURPLQLWLDOGHIRUPDWLRQ Z LQVW SOXVFUHHSGHIRUPDWLRQ ZFUHHS )RUFUHHSGHIRU
PDWLRQ WKH GHIRUPDWLRQV IURP WKH TXDVLSHUPDQHQW SRUWLRQV L DUH PXOWLSOLHG ZLWK WKH FRHIIL
FLHQWRIGHIRUPDWLRQ NGHI GHSHQGLQJ RQWKHXWLOLVDWLRQ FODVVDQGWKHEXLOGLQJ PDWHULDODFFRUGLQJ WR
6HFWLRQ

(16HFWLRQ$3DUDJUDSK

6HUYLFHDELOLW\OLPLWVWDWHV/LPLWDWLRQRIGHIOHFWLRQV
&RPELQDWLRQDQGOLPLWVIRUGHIOHFWLRQV
0DLQWHQDQFHRIWKHDSSHDUDQFHLQWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ

)LJXUH4XDVLSHUPDQHQWGHVLJQVLWXDWLRQ
Z ILQTV
Z LQVWTV NGHI
Z LQVWTV
Z*
Z FUHHS
L
L

Z4L
NGHI Z LQVWTV
Z LQVWTV QLWLDOGHIRUPDWLRQLQWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ

Z FUHHS &UHHSSRUWLRQDOZD\VIURPWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ
Z ILQTV (QGGHIRUPDWLRQLQWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ
NGHI &RHIILFLHQWRIGHIRUPDWLRQDFFWR6HFWLRQ

6HUYLFHDELOLW\OLPLWVWDWHV/LPLWDWLRQRIGHIOHFWLRQV
$YRLGDQFHRIGDPDJHVDQGOLPLWDWLRQVRIXWLOLVDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQ

)LJXUH&KDUDFWHULVWLFGHVLJQVLWXDWLRQ

QLWLDOGHIRUPDWLRQ
Z LQVW
(Z
J Z J
) Z
T
L Z TL

L !
(QGGHIRUPDWLRQ
Z ILQ
Z LQVW Z FUHHS

Z LQVW QLWLDOGHIRUPDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQ
Z ILQ (QGGHIRUPDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQ
Z FUHHS &UHHSSRUWLRQDOZD\VIURPWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ

7KHSRUWLRQRISHUPDQHQWORDGVPD\EHUHGXFHGE\WKDWSDUWRIWKHSHUPDQHQWORDGV Z J ZKLFKLV
HIIHFWLYHZLWKVXERUGLQDWHVWUXFWXUDOHOHPHQWVDWWKHWLPHRIILQLVKLQJ9HULILFDWLRQRIWKHHQGGHIRU
PDWLRQ Z ILQ ZLWK WKH GHIOHFWLRQ OLPLWV VWDWHG QRUPDOO\ LV QRW GHFLVLYH WKH PHDVXUH RI GHIOHFWLRQ
KRZHYHULVUHTXLUHGIRUGLPHQVLRQLQJRISRVVLEOHFRPSHQVDWLRQVWUXFWXUHV

6HUYLFHDELOLW\OLPLWVWDWHV9LEUDWLRQV
9LEUDWLRQV
*HQHUDO
$FFRUGLQJWR(16HFWLRQIRUVWUXFWXUHVLQJHQHUDOLWPXVWEHHQVXUHGWKDWLP
SDFWV WR EH IUHTXHQWO\ H[SHFWHG GR QRW FDXVH YLEUDWLRQV DIIHFWLQJ WKH IXQFWLRQ RI WKH EXLOGLQJ RU
FDXVLQJ WKH XVHUV XQSOHDVDQW GLVFRPIRUW )RU DSDUWPHQW FHLOLQJV YHULILFDWLRQV RI YLEUDWLRQ DUH GH
PDQGHG
7KHYLEUDWLRQSHUIRUPDQFHFDQEHDVVHVVHGE\PHDVXUHPHQWVRUHVWLPDWHGE\FDOFXODWLRQVQWKDW
WKHPRVWLPSRUWDQWSK\VLFDOTXDQWLWLHVDUHWKHILUVWQDWXUDOIUHTXHQF\WKHVWLIIQHVVDQGWKHGDPSLQJ
EHKDYLRXURIWKHFHLOLQJ
QRUGHUWRDYRLGUHVRQDQFHDVXIILFLHQWGLVWDQFHEHWZHHQH[FLWDWLRQIUHTXHQF\DQGILUVWQDWXUDOIUH
TXHQF\ LV EHLQJ DLPHG DW ([FLWDWLRQ E\ VWHSV WDNHV SODFH DERXW WZR WLPHV SHU VHFRQG LH ZLWK
+]8SRQZDONLQJWKHUHIXUWKHUPRUHLVH[FLWDWLRQZLWKWZLFHWKHIUHTXHQF\RIDERXW+]Q
(XURFRGH IRU VXIILFLHQW GLVWDQFH WR WKH H[FLWDWLRQ IUHTXHQF\ D ILUVW QDWXUDO IUHTXHQF\ RI DW OHDVW
+]LVQRZUHTXLUHG
7KHEHKDYLRXURIFHLOLQJVVXVFHSWLEOHWRYLEUDWLRQFDQEHLPSURYHGE\DGGLWLRQDOVXSSRUWVVSDQUH
GXFWLRQRUE\UHLQIRUFHPHQWPHDVXUHVKLJKHUVWLIIQHVV/RDGGLVWULEXWLRQWUDQVYHUVHWRWKHGLUHF
WLRQRIVSDQDQGKLJKHUGDPSLQJKDYHEHQHILFLDOHIIHFWV
IWKHUHTXLUHGPLQLPXPIUHTXHQF\FDQQRWEHFRPSOLHGZLWKYHULILFDWLRQRIYLEUDWLRQLVSRVVLEOHYLD
OLPLWDWLRQRIWKHYLEUDWLRQDFFHOHUDWLRQ
%DVLFSULQFLSOHV
1DWXUDOIUHTXHQF\DQGGDPSLQJ
IDVWUXFWXUDOHOHPHQWLVGHIOHFWHGDQGUHOHDVHGLWYLEUDWHVDURXQGLWVUHVWSRVLWLRQXQWLOLWJUDGXDOO\
UHWXUQVWRWKHVDPH

)LJXUH9LEUDWLRQSHUIRUPDQFHRIDVWUXFWXUDOHOHPHQW

7KHIUHTXHQF\ILVWKHQXPEHURIYLEUDWLRQVSHUVHFRQG'DPSLQJFDQEHVWDWHGIURPWKHUHODWLRQRI
WZRFRQVHFXWLYHDPSOLWXGHVDV/HKUVGDPSLQJUDWLRRUDOVRDVWKHORJDULWKPLFGHFUHPHQW'

)LJXUH9LEUDWLRQIUHTXHQF\RIDVWUXFWXUDOHOHPHQW


7

D
' OQ
D

I
6LQJOHVSDQEHDPZLWKXQLIRUPO\GLVWULEXWHGPDVV

)LJXUH8QLIRUPIRUFHLPSDFWRQVLQJOHVSDQJLUGHU
7KH ILUVW QDWXUDO IUHTXHQF\ RI D VLQJOHVSDQ JLUGHU XQLIRUPO\ ORDGHG ZLWK PDVV FDQ EH GHWHUPLQHG

LQGHSHQGHQWRIGDPSLQJDVIROORZV
IEHDP
(

P

6SDQRIWKHVLQJOHVSDQJLUGHU>P@
P 'LVWULEXWHGPDVV>NJP@
( )OH[XUDOVWLIIQHVV>1Pt@

6LQJOHGHJUHHRIIUHHGRPV\VWHPJHQHUDOLVHGPDVV

)LJXUH*HQHUDOLVHGPDVV

)RU GHWHUPLQDWLRQ RI WKH ILUVW QDWXUDO IUHTXHQF\ YLEUDWLQJ V\VWHPV OLNH DSDUWPHQW FHLOLQJV PD\ EH
UHGXFHGWRDVLQJOHGHJUHHRIIUHHGRPV\VWHP
7KHQDWXUDOIUHTXHQF\RIDVLQJOHGHJUHHRIIUHHGRPV\VWHPLV
I
F

0

0 0RGDOPDVV>NJ@
F6SULQJULJLGLW\>1P@
)RU D VLQJOHVSDQ JLUGHU WKH VSULQJ ULJLGLW\ DJDLQVW YHUWLFDO GHIRUPDWLRQ LQ WKH FHQWUH RI WKH JLUGHU
UHVXOWVDVIROORZV
F
( HI

6HH0OOHU

7KHPRGDOPDVVLV
0

P

8VLQJWKHVHYDOXHVHTXDWLRQFDQEHFRQYHUWHGWRHTXDWLRQZLWKJRRGDSSUR[LPDWLRQ

QIOXHQFHRIWKHWUDQVYHUVHORDGEHDULQJHIIHFW
$QDO\VHV DQG FRPSDUDWLYH FDOFXODWLRQV VKRZ WKDW ELD[LDO ORDG GLVWULEXWLRQ DQG SDUWLDO UHVWUDLQW RI
IORRUVKDYHDEHQHILFLDOHIIHFWRQWKHQDWXUDOIUHTXHQF\7KHVHHIIHFWVFDQRQO\EHPDSSHGZLWKVXLW
DEOHPRGHOOLQJIRUH[DPSOHDVJULOODJHRURUWKRWURSLFSDQHO
)RU PDQXDO FDOFXODWLRQ IRU UHFWDQJXODU DSDUWPHQW FHLOLQJV VXSSRUWHG RQ DOO VLGHV WKH LQIOXHQFH RI
IOH[XUDO VWLIIQHVV WUDQVYHUVH WR WKH PDLQ GLUHFWLRQ RI VSDQ ( WUDQVYHUVH FDQ EH GHULYHG IURP D JULOODJH
PRGHODQGFRQVLGHUHG7KHLPSURYHPHQWRQO\EHFRPHVHIIHFWLYHIURPDUDWLRRIIOH[XUDOVWLIIQHVVHV
LQ WKH DQFLOODU\ GLUHFWLRQ RI ORDGEHDULQJ FDSDFLW\ WR WKH PDLQ GLUHFWLRQ RI ORDGEHDULQJ FDSDFLW\ RI
( WUDQVYHUVH
!
(
(
NWUDQVYHUVH NH
P

I
NWUDQVYHUVH
( WUDQVYHUVH

(
E E

E :LGWKRIFHLOLQJVSDQWUDQVYHUVHWRWKHPDLQGLUHFWLRQRIORDGEHDULQJFDSDFLW\>P@
( WUDQVYHUVH 6WLIIQHVVWUDQVYHUVHWRWKHGLUHFWLRQRIVSDQ
NWUDQVYHUVH QIOXHQFHRIWKHWUDQVYHUVHORDGEHDULQJHIIHFWDFFRUGLQJWR$XJXVWLQ
NH QIOXHQFHRIWKHVWDWLFV\VWHPDFFRUGLQJWRWKHIROORZLQJVHFWLRQ
QIOXHQFHRIWKHVWDWLFV\VWHP
7KH LQIOXHQFH RI WKH VWDWLF V\VWHP FDQ EH FRQVLGHUHG LQ DQ DSSUR[LPDWH IDVKLRQ YLD RU IRU GRXEOH
VSDQ JLUGHUV 3DUWLDO UHVWUDLQWV DW WKH FHLOLQJ HGJHV KDYH D EHQHILFLDO HIIHFW RQ WKH ILUVW QDWXUDO IUH
TXHQF\
7DEOH)DFWRUVIRUGHWHUPLQDWLRQRIWKHQDWXUDOIUHTXHQF\RIGLIIHUHQWO\VXSSRUWHGVLQJOHVSDQJLUG
HUV
&RHIILFLHQWVIRUFRQVLGHUDWLRQRIGLIIHUHQWW\SHVRIVXSSRUW
NH
$UWLFXODWHVDUWLFXODWHG
5HVWUDLQHGDUWLFXODWHG
5HVWUDLQHGUHVWUDLQHG
5HVWUDLQHGIUHHFDQWLOHYHUEHDP

7DEOH)DFWRUVIRUGHWHUPLQDWLRQRIWKHQDWXUDOIUHTXHQF\RIGRXEOHVSDQJLUGHUVGHSHQGLQJRQUHOD
WLRQRIWKHVSDQV

NH

5HODWLRQEHWZHHQQDWXUDOIUHTXHQF\DQGGHIOHFWLRQ
)URP WKH FRPSDULVRQ RI WKH QDWXUDO IUHTXHQF\ RI D VLQJOHVSDQ JLUGHU DFFRUGLQJ WR HTXDWLRQ
P
WKHIROORZLQJUHODWLRQFDQEHIRUPHG
(
ZLWKWKHGHIOHFWLRQLQWKHFHQWUHRIWKHVSDQ Z P
I

ZP

Z P 'HIOHFWLRQDVDFRQVHTXHQFHRIWKHXQLIRUPPDVVDOORFDWLRQPLQ>PP@

6\VWHPVRIVWUXFWXUDOHOHPHQWVVXVFHSWLEOHWRYLEUDWLRQDUUDQJHGRQWRSRIRQHDQRWKHU
IDYLEUDWLQJV\VWHPFRQVLVWVRIVHYHUDOVWUXFWXUDOHOHPHQWVDVIRUH[DPSOHFHLOLQJVZLWKMRLVWVWKHQ
WKHILUVWQDWXUDOIUHTXHQF\FDQEHGHWHUPLQHGIURPQHOHPHQWVDFFRUGLQJWRWKHDSSUR[LPDWLRQIRU

PXODRI'XQNHUOH\

+ + + I =
I
ID
IE
IQ

ID

IE

+ +

IQ
([DPSOH&RPSOLDQFHZLWKDOLPLWIUHTXHQF\RI+]IRUDFHLOLQJ'HZLWKMRLVW8]

I'H
+]
I8]
+]
I'H
I8]

+]

5HFDOFXODWHGIRUGHIOHFWLRQVWKLVPHDQVWKDWWKHVXPRIWKHLQGLYLGXDOGHIOHFWLRQVPXVWEHOLPLWHG
Z Z Z Z JUHQ]

0RGDOPDVV
7KDWSDUWRIWKHPDVVRQDQHOHPHQWZKLFKLVDFWLYDWHGZLWKDFHUWDLQPRGHRIYLEUDWLRQFDQEHXQ
GHUVWRRGDVWKHPRGDORUDOVRJHQHUDOLVHGPDVV
)RU WKDW IRU D NQRZQ PRGH RI YLEUDWLRQ WKH PDVV HIIHFWLYH LQ HDFK QRGH LV PXOWLSOLHG ZLWK WKH
VTXDUHRIWKHQRGHGLVSODFHPHQW7KHQDWXUDOPRGHPXVWEHSUHYLRXVO\VWDQGDUGLVHGWRWKHPD[L
PXPYDOXHRI
0
Z
L

LQDWXUDO
0L

L 1XPEHURIQRGHV

+LYRVV

7KHUDWLREHWZHHQDFWXDODQGPRGDOPDVVFDQEHVWDWHGDVDIDFWRU7KHPRGDOPDVVWKHQLV
0 = N 0 0

)RUVLQJOHVSDQJLUGHUVWKHPRGDOPDVVKDVDOUHDG\EHHQVWDWHGLQIRUPXODLWLVGHWHUPLQHGLQ
DQDSSUR[LPDWHIDVKLRQZLWK
N0

N0 UHVS

)RUFRQWLQXRXVJLUGHUVWKHPRGDOPDVVLQFUHDVHVVLQFHWKHQHLJKERXULQJVSDQYLEUDWHVDVZHOO7KH
PRGDOPDVVRIDFRQWLQXRXVJLUGHUDFURVVWZRVSDQVZLWKWKHVDPHOHQJWKLVWZLFHDVKLJKDVWKDWRI
DVLQJOHVSDQJLUGHUDFURVVRQHRIWKHWZRVSDQV

7DEOH)DFWRUVIRUGHWHUPLQDWLRQRIWKHPRGDOPDVVRIGRXEOHVSDQJLUGHUV

GHSHQGLQJRQWKHUHODWLRQRIWKHVSDQV

N0

)RUSDQHOVVXSSRUWHGLQDQDUWLFXODWHGIDVKLRQRQDOOVLGHVPDWKHPDWLFDOVHTXHQFHDSSURDFKHVFDQ
EHXVHGIRUWKHQDWXUDOYLEUDWLRQPRGHVLQRUGHUWRIDFLOLWDWHGHWHUPLQDWLRQRIWKHPRGDOPDVV
)URPDJULOODJHFRQVLGHUDWLRQWKHIROORZLQJUHODWLRQFDQEHIRUPHGYLDWKHFRHIILFLHQWIRUWKHWUDQV
YHUVHORDGEHDULQJHIIHFW
N 0 =

N TXHU
NWUDQVYHUVH

( WUDQVYHUVH

(
E E

NWUDQVYHUVH QIOXHQFHRIWKHWUDQVYHUVHORDGEHDULQJHIIHFW
)URP +LYRVV WKH IROORZLQJ IDFWRU FDQ EH GHWHUPLQHG IRU LQGLYLGXDO UHFWDQJXODU VSDQV VXS
SRUWHGRQDOOVLGHV
N 0 =
"

E

7KHPRGDOPDVVIRUDVTXDUHFHLOLQJVSDQVXSSRUWHGRQDOOVLGHVZLWKWKHVDPHVWLIIQHVVLQERWKGL
UHFWLRQVUHVXOWVDVWKHORZHUOLPLWIRUWKHPRGDOPDVVRIDSDQHOLQ
N0
)RUFURVVODPLQDWHGWLPEHUWKHIDFWRUPRVWO\OLHVEHWZHHQDQG

$FFRUGLQJWR%OD(KOEHFN.UHX]LQJHUXQG6WHFNS

9HULILFDWLRQVRIYLEUDWLRQ
/LPLWDWLRQRIWKHYLEUDWLRQSHUIRUPDQFHE\PHDQVRIFDOFXODWLRQZLWKUHVSHFWLYHYHULILFDWLRQVLVGLIIL
FXOWQRWOHDVWGXHWRWKHVXEMHFWLYHSHUFHSWLRQRIWKHXVHUVQWKHIROORZLQJWKHYHULILFDWLRQRIYLEUD
WLRQDFFRUGLQJWR+DPPXQG5LFKWHUZLWKH[WHQVLRQVE\$XJXVWLQLVGHVFULEHG

9LEUDWLRQFODVVHVZLWKUHTXLUHPHQWVWRIUHTXHQF\DQGVWLIIQHVV+DPPDQG5LFKWHU
$FFRUGLQJ WR 7DEOH FHLOLQJV DUH FODVVLILHG LQWR WKUHH FODVVHV ZLWK UHVSHFW WR WKHLU YLEUDWLRQ SHU
IRUPDQFH
)RUYHULILFDWLRQWZRFULWHULDLQWHUPVRI
WKHILUVWQDWXUDOIUHTXHQF\DQG
WKHVWLIIQHVVRIWKHFHLOLQJGHIOHFWLRQDVDFRQVHTXHQFHRIDXQLWORDG
PXVWEHIXOILOOHG
IWKHILUVWQDWXUDOIUHTXHQF\LVEHORZWKHOLPLWYDOXHWKHQDFFRUGLQJWR+DPPDQG5LFKWHUIRUKHDY\
FHLOLQJVWKHXWLOLVDWLRQFRPIRUWFDQEHPDLQWDLQHGE\FRPSOLDQFHZLWKDOLPLWDFFHOHUDWLRQDVVKRZQ
LQ)LJXUH

)LJXUH&ODVVLILFDWLRQZLWKUHVSHFWWRWKHYLEUDWLRQSHUIRUPDQFH

ZN1 'HIOHFWLRQLQ>PP@DVDFRQVHTXHQFHRIDXQLWIRUFHRIN1DWWKHPRVWXQID
YRXUDEOHSRLQW
I )LUVWQDWXUDOIUHTXHQF\>+]@
DUPV (IIHFWLYHYDOXHRIWKHYLEUDWLRQDFFHOHUDWLRQ>PVt@

7DEOH9LEUDWLRQFODVVHVRIFHLOLQJV
9LEUDWLRQFODVV
7\SLFDODSSOLFDWLRQV
9LEUDWLRQFODVV
9LEUDWLRQFODVV
&HLOLQJVEHWZHHQGLIIHUHQWXWLOL
&HLOLQJVZLWKLQRQHXWLOLVD
&HLOLQJVXQGHUXQ
VDWLRQXQLWVOLNHVHSDUDWLQJFHLO
WLRQXQLWFHLOLQJVLQVLQJOH
GHYHORSHGDWWLFV
LQJVEHWZHHQDSDUWPHQWVFRQ
IDPLO\KRXVHVZLWKFRP
FHLOLQJVZLWKRXW
WLQXRXVFHLOLQJVFHLOLQJVLQRI
PRQXWLOLVDWLRQ
YLEUDWLRQUHTXLUH
PHQW
ILFHVHWF
([HFXWLRQ
:HWVFUHHGIORDWLQJRQOLJKWRU
:HWVFUHHGIORDWLQJDOVR
KHDY\ILOOV
ZLWKRXWILOO
'U\VFUHHGRQKHDY\ILOO
LHZLWKPRUHWKDQNJPt
)UHTXHQF\FULWHULRQ

6WLIIQHVVFULWHULRQ
I +]
I +]
ZN1 PP
ZN1 PP
IRUORZUHTXLUHPHQWV
ZN1 PP

/LPLWDFFHOHUDWLRQ
DUPV P V
DUPV P V
DGGLWLRQDOO\ I +]
I +]
+DPPXQG5LFKWHU
RU
.UHX]LQJHUXQG0RKU
XSRQWUDQVIHURIYLEUDWLRQ
LQWRWKHDGMDFHQWURRP
UHVS

/LPLWYDOXHVDFFRUGLQJWR+DPPXQG5LFKWHU5DEROGDQG+DPPGHVFULEHWKHKLJKHUOLPLWYDOXH
IRUORZHUUHTXLUHPHQWV.UHX]LQJHUXQG0RKUVXJJHVWDERXWWZLFHWKHOLPLWYDOXHV

)RUVWUXFWXUDOGHVLJQ>@WKHIROORZLQJOLPLWYDOXHVDUHVXJJHVWHGIRUDEDWLQJYLEUDWLRQVZLWKWLPEHUEHDP
FHLOLQJVLQUHVLGHQWLDOEXLOGLQJVQWKHUDQJHIURPWR+]DYLEUDWLRQDFFHOHUDWLRQRIPVtLVGHFLVLYHDV
WKHOLPLW>@IWUDQVIHURIWKHSXOVHVLQWRDQRWKHUURRPLVSRVVLEOHWKHQWKHYDOXHVIRUWKLVURRPVKRXOGEH
UHGXFHGWRPVt>@.UHX]LQJHUXQG0RKU6HFWLRQS

)UHTXHQF\FULWHULRQ

)LJXUH9LEUDWLRQRIDVWUXFWXUDOHOHPHQW

7KH ILUVW QDWXUDO IUHTXHQF\ FDQ EH GHWHUPLQHG DFFRUGLQJ WR WKH IRUPXODV LQ 6HFWLRQ )RU WKH
YLEUDWLQJPDVVPWKHSHUPDQHQWORDGVDORQHDUHDSSOLHG
P
JN JN

7DEOH VWDWHV WKH GHIOHFWLRQ OLPLW FRUUHVSRQGLQJ WR WKH UHVSHFWLYH QDWXUDO IUHTXHQF\ DV D FRQVH
TXHQFHRISHUPDQHQWORDGV

7DEOH'HIOHFWLRQOLPLWVDVVRFLDWHGZLWKWKHILUVWQDWXUDOIUHTXHQF\
9LEUDWLRQFODVV
/RZHVWOLPLWIUHTXHQF\
9LEUDWLRQFODVV
IRUYHULILFDWLRQRIYLEUD
WLRQDFFHOHUDWLRQ
)UHTXHQF\FULWHULRQ
I +]
I +]
I +]
Z P PP
Z P PP
Z P PP

5HVSHFWLYHGHIOHFWLRQDV
DFRQVHTXHQFHRI
J
JN J N

6WLIIQHVVFULWHULRQ

)LJXUH'HIOHFWLRQRIDVLQJOHVSDQJLUGHUDVDFRQVHTXHQFHRIDSRLQWORDG

7KHGHIOHFWLRQDVDFRQVHTXHQFHRIDSRLQWORDG ) N1 DWWKHPRVWXQIDYRXUDEOHSRLQWIRUDVLQJOH
VSDQJLUGHUZLWKRXWWUDQVYHUVHGLVWULEXWLRQLV
Z VWDW
N1
Z JUHQ]
( HI

6SDQRIWKHVLQJOHVSDQJLUGHU>P@
( HI (IIHFWLYHIOH[XUDOVWLIIQHVV>N1Pt@

7KHWUDQVYHUVHGLVWULEXWLRQPD\EHDSSOLHGDVIROORZV
Z
N1
N1

Z JUHQ]
( HI E)

E)
(
PLQ
WUDQVYHUVH E
(

6SDQ>P@
E :LGWKRIWKHFHLOLQJVSDQWUDQVYHUVHWRWKHPDLQGLUHFWLRQRIORDGEHDULQJFD
SDFLW\>P@
E) &RHIIHFWLYHZLGWKRIWKHFHLOLQJVSDQ>P@
( HI )OH[XUDOVWLIIQHVVLQWKHGLUHFWLRQRIVSDQ>N1Pt@

( WUDQVYHUVH )OH[XUDOVWLIIQHVVWUDQVYHUVHWRWKHGLUHFWLRQRIVSDQ>N1Pt@
/RZVWLIIQHVVSRUWLRQVLQWKHWUDQVYHUVHGLUHFWLRQDOUHDG\UHVXOWLQDVWURQJLP
SURYHPHQW:LWKDUDWLRRI
(WUDQVYHUVH
( HI

WKHUHVXOWDOUHDG\LV E)

/LPLWDFFHOHUDWLRQ
IWKHUHTXLUHGPLQLPXPIUHTXHQF\DFFRUGLQJWR7DEOHFDQQRWEHH[FHHGHGWKHQIRUKHDY\FHLO
LQJVWKHXWLOLVDWLRQFRPIRUWFDQEHPDLQWDLQHGE\FRPSOLDQFHZLWKDOLPLWDFFHOHUDWLRQLIDPLQLPXP
IUHTXHQF\RI+]LVFRPSOLHGZLWK7KHUHVSHFWLYHYHULILFDWLRQVFKHPHLVVKRZQLQ)LJXUH

)LJXUH)ORZGLDJUDPIRUYHULILFDWLRQRIYLEUDWLRQ

$FFHOHUDWLRQRFFXUVDVDUHVSRQVHRIWKHFHLOLQJWRDSHUVRQZDONLQJWKHUHRQ

DUPV
)
0 '

D JUHQ]
0 '
) :HLJKWIRUFHRIDZDONLQJSHUVRQ )

>1@
0 0RGDOPDVVDFFRUGLQJWR6HFWLRQLQ>NJ@
' 0RGDOGHJUHHRIGDPSLQJDOVR/HKUVGDPSLQJUDWLRLQ>@
DFFRUGLQJWR7DEOH
H
I
&RHIILFLHQWIRUFRQVLGHUDWLRQRIWKHLQIOXHQFHRIWKHQDWXUDOIUHTXHQF\RQYLEUD
WLRQDFFHOHUDWLRQLQ>@
H
I
7KHGHSHQGHQF\IURPWKHILUVWQDWXUDOIUHTXHQF\LVVKRZQLQ)LJXUH

)LUVWQDWXUDOIUHTXHQF\>+]@

)LJXUH'HSHQGHQF\RIWKHFRHIILFLHQWRQWKHILUVWQDWXUDOIUHTXHQF\

7KHDPRXQWRIDFFHOHUDWLRQGHSHQGVRQWKHGLVWDQFHRIWKHQDWXUDOIUHTXHQF\WRWKHH[FLWDWLRQIUH

TXHQF\DQGDVVXPHVWKHKLJKHVWYDOXHVLQWKHFDVHRIUHVRQDQFH $FFHOHUDWLRQFDQEHLPSURYHGE\
LQFUHDVLQJWKHFHLOLQJVWLIIQHVVDQGFRQVHTXHQWO\WKHILUVWQDWXUDOIUHTXHQF\DQGE\LQFUHDVLQJWKH
FRYLEUDWLQJPDVV
9LEUDWLRQDFFHOHUDWLRQLVXVHGDVDQHYDOXDWLRQTXDQWLW\LQRWKHUYHULILFDWLRQPHWKRGVWRRVHH
2QHVWHSURRWPHDQVTXDUH7KHFDOFXODWLRQPRGHOVDQGOLPLWYDOXHVIRUDFFHOHUDWLRQDUHFXUUHQWO\
EHLQJGLVFXVVHG

7DEOH'HJUHHVRIGDPSLQJIRUYDULRXVFHLOLQJVWUXFWXUHV
0RGDO
GHJUHHRIGDPSLQJ
7\SHRIFHLOLQJVWUXFWXUH
'
&HLOLQJVWUXFWXUHVZLWKRXWRUZLWKOLJKWIORRUVWUXFWXUHUHVS

&HLOLQJVWUXFWXUHVZLWKIORDWLQJVFUHHG

&URVVODPLQDWHGWLPEHUFHLOLQJVZLWKRXWRUZLWKOLJKWIORRUVWUXFWXUHUHVSHFWLYHO\

7LPEHUEHDPFHLOLQJVDQGPHFKDQLFDOO\FRQQHFWHGERDUGVWDFNFHLOLQJVZLWKIORDWLQJ
VFUHHG

&URVVODPLQDWHGWLPEHUFHLOLQJVZLWKIORDWLQJVFUHHGDQGKHDY\IORRUVWUXFWXUH

$OWHUQDWLYHYHULILFDWLRQVRIYLEUDWLRQ
9HULILFDWLRQDFFRUGLQJWR(XURFRGH(1
)RU WKH YHULILFDWLRQ RI YLEUDWLRQ FULWHULD IRU QDWXUDO IUHTXHQF\ YLEUDWLRQ YHORFLW\ DQG VWLIIQHVV DUH
GHILQHGLQ(10RVWO\FRPSOLDQFHZLWKWKHILUVWQDWXUDOIUHTXHQF\LVGHFLVLYH
I I JUHQ]
+]

)RU QDWXUDO IUHTXHQFLHV EHORZ +] VSHFLDO DQDO\VHV DUH UHTXLUHG )XUWKHUPRUH VWLIIQHVV RI WKH
FHLOLQJDVDFRQVHTXHQFHRISRLQWORDGDQGSXOVHYHORFLW\PXVWEHOLPLWHG)RUIUHTXHQF\UDQJHVEH
WZHHQ DQG +] OLPLWDWLRQ RI WKH YLEUDWLRQ DFFHOHUDWLRQ ZLWKRXW D YHULILFDWLRQ GHILQHG LQ
PRUHGHWDLOLVVXJJHVWHGLQWKH$XVWULDQDSSOLFDWLRQGRFXPHQW

$FFRUGLQJWR+DPPXQG5LFKWHU = LVGHWHUPLQHGIRUWKHOLPLWFDVHRIUHVRQDQFH7KLVSURYLGHV
WKHYDOXHRIWKHVWDWHGFRPSHQVDWLRQIXQFWLRQ = H I IRU I = +] Q.UHX]LQJHUXQG0RKUDFFHO

HUDWLRQLVVWDWHGFRQVLGHULQJWKHQDWXUDOIUHTXHQF\RIWKHFHLOLQJ$FFRUGLQJO\LQWKHUDQJHIURPWR+]WKH

I
I
WHUP ' PD\EHUHSODFHGE\WKHWHUP ) + ' ) ZLWK I) = +]
I
I

$FFRUGLQJWR$XJXVWLQ

/LPLWDWLRQRIDEVROXWHGHIOHFWLRQ'1
$VGHVFULEHGDERYHOLPLWDWLRQRIWKHQDWXUDOIUHTXHQF\LVHTXLYDOHQWWRDQDEVROXWHOLPLWDWLRQRIGH
IOHFWLRQ Q '1 6HFWLRQ UHVSHFWLYHO\ WKHUH LV WKH YHULILFDWLRQ IRU GHDG ZHLJKW DQG
TXDVLSHUPDQHQWSRUWLRQRIWKHOLYHORDGV
Z LQVWTV Z JUHQ]
Z LQVWTV
PP
Z JN Z QN
Z JN Z QN

7KHUHLVWKHIROORZLQJUHODWLRQEHWZHHQWKLVGHIOHFWLRQUHTXLUHPHQWDQGWKHIUHTXHQF\UHTXLUHPHQW
Z JUHQ] PP
ITV +]

QWKHOLWHUDWXUHLWLVSRLQWHGRXWWKDWIXOILOPHQWRIWKHILUVWQDWXUDOIUHTXHQF\DORQHFDQQRWEHFRQ
VLGHUHGVXIILFLHQW
2QHVWHSURRWPHDQVTXDUH26506
$VDQDGGLWLRQWRWKHYHULILFDWLRQ PHWKRGIRU WLPEHUFRQVWUXFWLRQGHVFULEHG DERYHKHUHD JHQHUDO
YHULILFDWLRQ PHWKRG LV WR EH PHQWLRQHG ZKLFK ZDV SUHSDUHG ZLWKLQ WKH VFRSH RI WKH +LYRVV SUR

JUDPPH DQGFDQEHXVHGDVDQDOWHUQDWLYHYHULILFDWLRQPHWKRGIURPFDVHWRFDVH
7KHRQHVWHSURRWPHDQVTXDUH26506PHWKRGZDVSXEOLVKHGDV5HSRUW(85(17KH26
506YDOXHLQGLFDWHVWKHYLEUDWLRQUHVSRQVHLQWKHIRUPRIDFFHOHUDWLRQRIDFHLOLQJZKLFKLVLQLWLDWHG
E\DSHUVRQZDONLQJWKHUHRQ
7KHYLEUDWLRQUHVSRQVHVZHUHHYDOXDWHGIRUYDULRXVGHJUHHVRIGDPSLQJPDVVHVDQGIUHTXHQFLHVLQ
WKHIRUPRIGLDJUDPV:LWKWKHLQSXWYDOXHVGDPSLQJPRGDOPDVVDQGILUVWQDWXUDOIUHTXHQF\FHLO
LQJVFDQEHFODVVLILHGZLWKUHVSHFWWRWKHLUYLEUDWLRQSURSHUWLHVDVEDVLFDOO\VKRZQLQ)LJXUH

)LJXUH%DVLFDSSURDFKIRUYLEUDWLRQFODVVLILFDWLRQRIFHLOLQJV

6HH+LYRVV

8OWLPDWHOLPLWVWDWHVLQWKHHYHQWRIILUH'HVLJQVLWXDWLRQ
'HVLJQVLWXDWLRQ
7KHYHULILFDWLRQVRIORDGEHDULQJFDSDFLW\LQ WKHHYHQWRIILUH PXVWEHXQGHUWDNHQLQWKHH[WUDRUGL
QDU\GHVLJQVLWXDWLRQ *HQHUDOO\GHSHQGLQJ RQQDWLRQDOGHWHUPLQDWLRQVWKHOHDGLQJYDULDEOHLP
SDFWPD\EHFRPELQHGZLWKLWVTXDVLSHUPDQHQWSRUWLRQ
( ILG
N M
L
L
4NL

)RUURRIVWUXFWXUHVLWLVUHFRPPHQGHGWRXVHWKHIUHTXHQWSRUWLRQ RIWKHOHDGLQJYDULDEOHLPSDFW
VLQFHIRUORDGVRQURRIVIUHTXHQWO\
( ILG
N M
4N
L !
L
4NL

$FFRUGLQJ WR (1 3DUDJUDSK D ORFDO PLQLPXP ORDGEHDULQJ FDSDFLW\ RI FHLOLQJV
PXVW EH HQVXUHG )RU WKDW D VHSDUDWH YHULILFDWLRQ ZLWK D SRLQW ORDG PXVW EH XQGHUWDNHQ ZKLFK
XQOHVVUHJXODWHGRWKHUZLVHGRHVQRWKDYHWREHFRPELQHGZLWKWKHXQLIRUPO\GLVWULEXWHGORDGDQG
RWKHUYDULDEOHLPSDFWV)RUDSDUWPHQWFHLOLQJVWKLVPHDQVDPDQORDGRI4N N1ZKLFKIURP
WKHDXWKRUVSRLQWRIYLHZPXVWEHFRQVLGHUHGIRUWKHILUHYHULILFDWLRQZLWKRXWFRHIILFLHQW
$FFRUGLQJ WR (1 3DUDJUDSK IRU IDOO SURWHFWLRQ DQ DGGLWLRQDO KRUL]RQWDO ORDG DW D
KHLJKWRIPPXVWEHFRQVLGHUHG)URPWKHDXWKRUVSRLQWRIYLHZDKRUL]RQWDOORDGRIDERXWTN
N1PZLWKRXWFRHIILFLHQW VKRXOGEHDSSOLHGIRUZDOOVLQWKHHYHQWRIILUHWRR
&KDUULQJDQGFURVVVHFWLRQDOYDOXHV
Q WKH XOWLPDWH OLPLW VWDWHV LQ WKH HYHQW RI ILUH IROORZLQJ WKH UHTXLUHG ILUH UHVLVWDQFH WLPH WKH HOH
PHQWUHGXFHGE\FKDUULQJLVDQDO\VHGLQWKHH[WUDRUGLQDU\GHVLJQVLWXDWLRQ)LUVWWKHFKDUULQJGHSWK
GFKDUQ IRUWKHUHTXLUHGILUHUHVLVWDQFHWLPHLVGHWHUPLQHGQRUGHUWRFRQVLGHUWKHWHPSHUDWXUHGLV
WULEXWLRQ LQ WKH UHPDLQLQJ FURVVVHFWLRQ DFFRUGLQJ WR (1 HLWKHU D WKH PHWKRG ZLWK D UH
GXFHG FURVVVHFWLRQ RU E WKH PHWKRG ZLWK UHGXFHG PDWHULDO SURSHUWLHV FDQ EH DSSOLHG VHH
)LJXUH &XUUHQWO\ WKH VWDQGDUG GHWDLOV RQ UHGXFHG PDWHULDO SURSHUWLHV DUH UHVWULFWHG WR URG
VKDSHG HOHPHQWV WKHUHIRUH WKH UHGXFHG FURVVVHFWLRQ PHWKRG LV DSSOLHG IRU FURVVODPLQDWHG WLP
EHU)RUWKLVUHGXFHGFURVVVHFWLRQDOD\HUWKLFNQHVV NG ZLWKRXWVWUHQJWKDQGVWLIIQHVVLVGHGXFWHG
IURPWKHFKDUUHGFURVVVHFWLRQ

GHI
GFKDUQ NG

8OWLPDWHOLPLWVWDWHVLQWKHHYHQWRIILUH&KDUULQJDQGFURVVVHFWLRQDOYDOXHV

)LJXUH&KDUULQJDQGFDOFXODWLRQPHWKRGV
&KDUULQJGHSWK
1HZHU ILUH WHVWV VKRZ WKDW DQ LQFUHDVHG WHPSHUDWXUH UHVXOWV LQ UHGXFHG DGKHVLYH SURSHUWLHV RI
WKHUPRSODVWLFDGKHVLYHVOLNHSRO\XUHWKDQH7KHUHIRUHZLWKWKLVW\SHRIDGKHVLYHGHWDFKPHQWRISDU
WLDODUHDVRIWKHFKDUUHGOD\HUVPD\RFFXULQFHLOLQJVDQGRWKHUKRUL]RQWDOO\LQVWDOOHGHOHPHQWVZKLFK
LVFDOOHGGHODPLQDWLRQQGHVFULSWLRQVWKHVHDUHDVDUHGHVFULEHGDVDERXWSDOPVL]HG
)RUIDLOLQJILUHSURWHFWLRQOD\HUVDFDOFXODWLRQPRGHOH[LVWVLQ(17KLVZDVDSSOLHGWR
FURVVODPLQDWHGWLPEHUQWKDWLWZDVDVVXPHGWKDWIROORZLQJFRPSOHWH IDLOXUHRI DILUHSURWHFWLRQ
OD\HUIRUH[DPSOHVXVSHQGHGSODVWHUERDUGVIDOOLQJGRZQILUVWFKDUULQJRFFXUVDWWZLFHWKHVSHHG
$IWHU PP RI FKDUULQJ WKH QRUPDO FKDUULQJ UDWH FDQ EH DVVXPHG DJDLQ VLQFH D QHZ SURWHFWLYH
OD\HUFRXOGEHIRUPHGE\FKDUULQJ)LJXUHVKRZVWKHHIIHFWVRIWKLVPRGHORQDILYHOD\HUHOHPHQW
DVDQH[DPSOH7KHGDVKHGOLQHFRUUHVSRQGVWRXQLIRUPFKDUULQJ

)LUHWHVWVZLWKVPDOODQGODUJHUVDPSOHV VKRZORZHUFKDUULQJUDWHVFRPSDUHGWRWKLVPRGHODQGLW
GHSHQGVRQWKHFKRLFHRIWKHVXLWDEOHGHVLJQPHWKRGWRUHSUHVHQWFKDUULQJUHDOLVWLFDOO\EXWQRWWRR
FRQVHUYDWLYHO\
$WWKHWLPHRISXEOLFDWLRQWKHUHLVQRXQLYHUVDOO\YDOLGVWUXFWXUDOGHVLJQPHWKRGQSUDFWLFDOVWUXF
WXUDOGHVLJQGHSHQGLQJRQWKHILUHH[SHUWLVHGLIIHUHQWFKDUULQJUDWHVDUHXVHGPRVWO\ZLWKRXWDSSOL
FDWLRQRIGHODPLQDWLRQ

7HLELQJHUXQG0DW]LQJHU

0HWKRGRIUHGXFHGFURVVVHFWLRQV
7KH LQFUHDVHG WHPSHUDWXUH H[FHHGLQJ WKH FDOFXODWHG FKDUULQJ OLPLW GFKDUQ UHVXOWV LQ D UHGXFWLRQ RI
WKHPDWHULDOSURSHUWLHV7KLVLVFRQVLGHUHGYLDDOD\HUZLWKRXWVWUHQJWK NG PP
&RPSDUDWLYH FDOFXODWLRQV VKRZ WKDW WKH YDOXH RI NG PP GRHV QRW JHQHUDOO\ DSSO\ WR DOO FURVV
ODPLQDWHGWLPEHUEXLOGXSVDQGVWUHVVHV'HSHQGLQJRQWKHSRVLWLRQRIWKHWUDQVYHUVHOD\HUVMXPSV
H[FHHGLQJPPPD\RFFXUDVGHVFULEHGLQ6FKPLGHWDO:LWKDULVNRIEXFNOLQJFRPSDUDWLYH
FDOFXODWLRQVOLNHZLVHUHVXOWLQKLJKHUYDOXHV
0HWKRGRIUHGXFHGPDWHULDOSURSHUWLHV
'XHWRWKHOD\HUHGEXLOGXSRIFURVVODPLQDWHGWLPEHUIURPWRGD\VSRLQWRIYLHZDQDOWHUQDWLYHILUH
YHULILFDWLRQ XVLQJ UHGXFHG PDWHULDO SURSHUWLHV LV UHDVRQDEOH )RU WKDW ILUH WHVWV DOUHDG\ SHUIRUPHG
FRXOGEHDVVHVVHGDQGUHGXFWLRQIDFWRUV NPRG IL IRUFURVVODPLQDWHGWLPEHUFDOFXODWHG

)LJXUH&URVVVHFWLRQFKDUULQJGHSWKDQGWLPHFXUYHRIFKDUULQJIRUDFHLOLQJHOHPHQWFRQVLGHULQJ
GHODPLQDWLRQ

)LJXUH&URVVVHFWLRQFKDUULQJUDWHDQGWLPHFXUYHIRUXQLODWHUDOFKDUULQJRIDZDOOHOHPHQW


)LJXUH&URVVVHFWLRQFKDUULQJUDWHDQGWLPHFXUYHIRUELODWHUDOFKDUULQJRIDZDOOHOHPHQW

&URVVODPLQDWHGWLPEHUJLUGHU
)RU WKH XSULJKW XVH DV D JLUGHU DFFRUGLQJ WR WKH GHWHUPLQDWLRQV IRU UHFWDQJXODU FURVVVHFWLRQV LQ
FUHDVHGFKDUULQJ Q PXVWEHDVVXPHGLQRUGHUWRFRQVLGHUFRUQHUURXQGLQJFDXVHGE\FKDUULQJ
&KDUULQJUDWHVZLWKKHDWSURRIDGKHVLRQ
8SRQXVLQJFURVVODPLQDWHGWLPEHULQWKHDUHDRQHGLPHQVLRQDOFKDUULQJPD\EHXVHGIRUFDOFXOD
WLRQ
Q

PP PLQ
&KDUULQJUDWHVZLWKQRQKHDWSURRIDGKHVLRQ
6LQFH FXUUHQWO\ WKH GHWHUPLQDWLRQ RI WKH FKDUUHG UHVLGXDO FURVVVHFWLRQ LV UHJXODWHG GLIIHUHQWO\ GH
SHQGLQJRQWKHPDQXIDFWXUHULQWKHIROORZLQJDVHOHFWLRQRIHVWDEOLVKHGPRGHOVDQGFKDUULQJUDWHV
LVGHVFULEHG

6RXUFH
&URVVODPLQDWHGWLPEHUJXLGHOLQH
PP PLQ
:DOO
SHUOD\HU
OD\HURQ
VHFRQG
)URPWKH
&HLOLQJ
)LUVWOD\HU
)RUWKHILUVWPP
)RUWKHUHVWRIWKHOD\HU
NyG
)LUVWOD\HU
)URPWKHVHFRQGOD\HURQ
+)$RSLQLRQ
PP PLQ
PP PLQ
NG
PP
PP PLQ
PP PLQ
NG
NyG

PP PLQ
PP

5HVLGXDOODPLQDWHV
5HVLGXDO ODPLQDWHV ZLWK D WKLFNQHVV RI QR PRUH WKDQ PP UHPDLQLQJ IROORZLQJ FKDUULQJ DUH RPLW
WHG &RPSDUDWLYH FDOFXODWLRQV VKRZ WKDW IRU WKH PDMRULW\ RI WKH FDVHV WKH FURVVVHFWLRQ IROORZLQJ
IDLOXUHRIWKHVHUHVLGXDOODPLQDWHVKDVDKLJKHUUHVLVWDQFHWKDQZLWKWKHODPLQDWHV

6HH6FKLFNKRIHUHWDO&KDSWHU7KHYDOXHVDSSO\WRFURVVODPLQDWHGWLPEHUHOHPHQWVZLWKRXWMRLQWV
:LWKMRLQWVXSWRDWKLFNQHVVRIPP = PPPLQ LVDSSOLHG

([SHUWRSLQLRQ1R%%9LHQQD+RO]IRUVFKXQJ$XVWULD

8OWLPDWHOLPLWVWDWHVLQWKHHYHQWRIILUH9HULILFDWLRQ
9HULILFDWLRQ
QWKHHYHQWRIILUHYHULILFDWLRQPD\EHXQGHUWDNHQZLWKRXWVDIHW\IDFWRUVDQGZLWKKLJKHUVWUHQJWKV
IUDFWLOH
$WVWUHVVOHYHOWKHYHULILFDWLRQLVDVIROORZV
ILG I ILG
ILG NPRG IL
I

0 IL
ILG N IL NPRG IL
IN
0 IL
IN
NPRG IL

& NPRG IL

I N IL IN
&

E
W
D

D
6WUHQJWKVLQWKHHYHQWRIILUH

7DEOH&KDUDFWHULVWLFVWUHQJWKYDOXHVIRUFURVVODPLQDWHGWLPEHUXSRQXVHDVDSDQHOLQWKHHYHQWRI
ILUH
6XJJHVWHG
GHVLJQYDOXHV
LQWKHHYHQWRIILUH

)OH[XUDOVWUHQJWK
IP ILG
1PPt
7HQVLOHVWUHQJWK
IW ILG
1PPt
&RPSUHVVLYHVWUHQJWK
LQGLUHFWLRQRIILEUH
IF ILG
1PPt
7UDQVYHUVHFRPSUHVVLYH
VWUHQJWK
IF ILG
1PPt
6KHDUVWUHQJWK
I9 ILG
1PPt
I95 ILG
1PPt
7RUVLRQDOVWUHQJWK
I7 ILG
1PPt
5DQJHIRU
6HH7DEOHS

6HFWLRQ
7LPEHUEDVHGPDWHULDOVDQGJOXHGODPLQDWHGWLPEHUDFFRUGLQJWR(17DEOH

/RVVRIVWDWLFHTXLOLEULXP'HVLJQVLWXDWLRQ
)RUWKHHQWLUHVWUXFWXUHDQGLWVSDUWVWKHVWDWLFHTXLOLEULXPPXVWEHJXDUDQWHHGXQGHUFRQVWUXFWLRQ
DQGGXULQJXWLOLVDWLRQ)RUFURVVODPLQDWHGWLPEHUEXLOGLQJVLQFDVHRIIODWURRIVRUH[WHULRU IDFDGH
VXUIDFHVOLIWRIIRIHOHPHQWVIURPWKHVXSSRUWVGXHWRZLQGVXFWLRQPXVWEHYHULILHGDQGSUHYHQWHG
ZLWKVXLWDEOHIDVWHQHUV
'HVLJQVLWXDWLRQ
7KHYHULILFDWLRQVDUHXQGHUWDNHQLQWKHWHPSRUDU\GHVLJQVLWXDWLRQVWDWHVRIFRQVWUXFWLRQDQG WKH
UDUHGHVLJQVLWXDWLRQILQDOVWDWH)RUERWKGHVLJQVLWXDWLRQVWKHIROORZLQJORDGFRPELQDWLRQZLWKWKH
SDUWLDOVDIHW\IDFWRUVIURP7DEOHPXVWEHDSSOLHG
(G
* *N 4 4N
L !
L 4NL

7DEOH3DUWLDOVDIHW\IDFWRUVLQWKHOLPLWVWDWHRIORVVRIHTXLOLEULXP(48
9HULILFDWLRQVDJDLQVW
ORVVRIVWDWLFHTXLOLEULXP
3HUPDQHQWLPSDFWV
UHOLHYLQJLQI
9DULDEOHLPSDFWV
VWUHVVLQJVXS
* LQI

4 VXS

/RVVRIVWDWLFHTXLOLEULXP/LIWRII
/LIWRII

9HULILFDWLRQ

)6G )5G

)6G 'HVLJQYDOXHRILPSDFWRQWKHIDVWHQHU

)5G 'HVLJQYDOXHRIUHVLVWDQFHRIWKHIDVWHQHU

)5N
)5G
NPRG

)6G
* LQI *N 4 :VN

QWKDWWKHIROORZLQJDSSOLHV
H[FHVVSUHVVXUH QR IDVWHQHU QHFHVVDU\
)6 G

> GLVFKDUHGE\IDVWHQHU

)LJXUH6WUHVVDJDLQVWOLIWRII

$SSOLFDWLRQH[DPSOH
([DPSOH/LIWRIIRIDURRILQJVODE
'HWDLOV
&URVVODPLQDWHG WLPEHU HOHPHQWV ;/DP/V DUH
XQLD[LDOO\ SODFHG DFURVV WUXVVHV DV D KDOO URRI 7KH
VWDQGDUG GLVWDQFH RI WKH FURVVODPLQDWHG WLPEHU
WUXVVHVLVP7KHFDQRS\SURMHFWVE\P
)XOO\WKUHDGHGVFUHZVVHFXUHWKHURRIDJDLQVWOLIWRII

2XWOLQHFRQGLWLRQV
8WLOLVDWLRQFODVV1./
/RDGGXUDWLRQFODVV./(' EULHI
PSDFWV
:LQGVXFWLRQLQWKHFDQRS\DUHD
Z VN
N1 P
'HDGZHLJKWRIWKHORDGEHDULQJHOHPHQWV
JN
N1 P
REVHUYHVWDWHVRIFRQVWUXFWLRQ
)DVWHQHUV
&KDUDFWHULVWLFUHVLVWDQFHDJDLQVWZLWKGUDZDORIDVFUHZ )5N N1

&DOFXODWLRQ
/RDGLQIOXHQFHZLGWKIRUOLQHORDGDWWKHWUXVV
EH P
'HVLJQYDOXHRILPSDFWSHUUXQQLQJPHWUHRIWUXVV
T6G EH (* VXS JN 4 LQI Z VN )
T6G
( )
T6G
N1P
'HVLJQYDOXHRIUHVLVWDQFHRIDIDVWHQHU
)5N
)5G
NPRG
)5G

)5G
N1

6WDWLFDOO\UHTXLUHGGLVWDQFHRIWKHIDVWHQHUV
)5G
UHTX H
UHTX H
T6G

UHTX H P
6HOHFWHGGLVWDQFHRIWKHIDVWHQHUV
VHOH P
9HULILFDWLRQ
)6G )5G
VHOH T
6G
)5G

9IXOILOOHG

6XIILFLHQWVFUHZLQJLQGHSWKDQGFRPSOLDQFHZLWKWKHWUDQVYHUVHWHQVLOHVWUHQJWKRIWKHPDLQJLUGHU
PXVWEHREVHUYHG

-RLQLQJWHFKQLTXHV%XWWMRLQWV
-RLQLQJWHFKQLTXHV
%XWWMRLQWV
)RUPILWMRLQLQJLVHDV\WRH[HFXWHDQGVXLWDEOHIRUWKHPDWHULDOQWKDWEXWWMRLQWVYLDHQGSUHVVLQJ
DUHDERXWHLJKWWLPHVPRUHHIILFLHQWWKDQYLDSUHVVLQJWUDQVYHUVHWRWKHILEUH
)LJXUHJLYHVDQRYHUYLHZRYHUDQXPEHURIFDVHVVKRZQIXUWKHUEHORZ

)LJXUH2YHUYLHZRYHUWKHEXWWMRLQWVVKRZQ

)LJXUHVKRZVDVXSSRUWGHVLJQIRUDQRWFKIWKHVHFRQGZDOOHOHPHQWZLWKDKRUL]RQWDOWRSOD\HU
LV FRQQHFWHG WKHQ RQO\ VLGH PHPEHUV DUH MRLQHG QVHUWLQJ D VWHHO VKHHW ORDG WUDQVPLVVLRQ PD\
DJDLQWDNHSODFHYLDHQGSUHVVLQJ

-RLQLQJWHFKQLTXHV%XWWMRLQWV

)LJXUH1RWFKLQWKHZDOOSODQHFDVHD

)LJXUH6LOOSUHVVLQJFDVHE

)LJXUH6XSSRUWGHVLJQIRUQRWFKHVDWDQDQJOHFDVHF

-RLQLQJWHFKQLTXHV-RLQWGHVLJQV

)LJXUH%HDPVXSSRUWFDVHG
-RLQWGHVLJQV
7KLV VHFWLRQ VKRZV IUHTXHQWO\ H[HFXWHG GHVLJQV IRU YDULRXV ORDG FDVHV DV VXJJHVWLRQV ZLWKRXW
FODLPLQJWREHH[KDXVWLYH
$UWLFXODWHGMRLQWV

)LJXUH-RLQLQJDORQJWKHXQORDGHGORQJLWXGLQDOVLGHE\PHDQVRIPLOOHGLQMRLQWFRYHUVWULSUDEEHW
HGJHRUFURVVHGIXOO\WKUHDGHGVFUHZV

QXQLD[LDOO\VWUHVVHGFHLOLQJVWKHMRLQWVPXVWWUDQVIHUFRPSDWLELOLW\IRUFHVIURPWKHHOHPHQWSODQH
:LWK WKH FRPSDWLELOLW\ IRUFHV GHIOHFWLRQV RI DGMDFHQW HOHPHQWV DUH FRXSOHG DV VKRZQ LQ )LJXUHV
DDQGE
QFDVHRIGLVWXUEDQFHVRIWKHXQLD[LDOORDGGLVWULEXWLRQKLJKHUODWHUDOIRUFHV9GRFFXULQWKHMRLQWV
WKLVUHTXLUHVDGGLWLRQDOGHVLJQPHDVXUHVDVVKRZQLQ)LJXUHVFDQGG


)LJXUH-RLQWGHVLJQIRUGLIIHUHQWUHTXLUHPHQWV

)RUWKHIXQFWLRQRIWKHFHLOLQJVSDQDVDSODWHVKHDUIRUFHVPXVWEHWUDQVIHUUHGDORQJWKHMRLQWV7G
DVVKRZQLQ)LJXUHVDDQGG7HQVLOHIRUFHV=GZKLFKZRXOGUHVXOWLQRSHQLQJRIWKHMRLQWVPXVW
EHWUDQVIHUUHGE\VXLWDEOHGHVLJQRIWKHFHLOLQJHGJHDVDWHQVLRQIODQJH7KLVPD\WDNHSODFHLQFRQ
QHFWLRQ ZLWK WKH ZDOOV EHORZ RU ZLWK VXLWDEOH VFUHZLQJ RI WKH FHLOLQJ HOHPHQWV WR RQH DQRWKHU DV
VKRZQLQ)LJXUHVFDQGG
5LJLGMRLQWV
%HQGLQJ PRPHQWV FDQ EH WUDQVIHUUHG ZLWK WZRGLPHQVLRQDO ILVK SODWHV RI WZRGLPHQVLRQDOO\ DU
UDQJHG VTXDUHG WLPEHU WLPEHUEDVHG PDWHULDOV RU VWHHO VKHHWV )RU MRLQWV LQ WKH PDLQ GLUHFWLRQ RI
ORDGEHDULQJ FDSDFLW\ H[WHULRU ILVK SODWHV DUH QRUPDOO\ SURYLGHG )LJXUHVD DQG UHFHVVHG ILVK
SODWHV IRU MRLQWV LQ WKH DQFLOODU\ GLUHFWLRQ RI ORDGEHDULQJ FDSDFLW\ )LJXUHVE )RU MRLQLQJ VFUHZ
SUHVVDGKHVLRQVDUHQRUPDOO\XVHG7KHHIILFLHQF\RIFRQQHFWLRQVZLWKH[WHULRUILVKSODWHVOLHVLQWKH
RUGHURIDERXW7KHXVHRIWRSDQGERWWRPDSHUWXUHSODWHVZLWKULQJQDLOVUHTXLUHVVRPHPLOOLQJ
DQGLVIDVWHU7KHUHZLWKWUDQVIHURIUHODWLYHO\KLJKVKHDULQJIRUFHVLVHQDEOHG


)LJXUH5LJLGMRLQWV

)OXVKMRLVWV
)LJXUHVKRZVGHVLJQYDULDQWVIRUIOXVKMRLVWV7KHGHVLJQDFFRUGLQJWRYDULDQWDLVVXLWHGIRUWKH
WUDQVIHURIYHUWLFDOORDGV)RUDFRQWLQXRXVGLDSKUDJPWKHGHVLJQIOXVKZLWKWKHXSSHUHGJHEDQG
WKHGHVLJQIOXVKZLWKWKHORZHUHGJHFDUHVXJJHVWHG

)LJXUH)OXVKMRLVWVRIUROOHGVWHHOVHFWLRQV

7DEOH DQG 7DEOH IDFLOLWDWH WKH VHOHFWLRQ RI WKH UROOHG VHFWLRQV E\ LQGLFDWLRQ RI WKH SRVVLEOH

LQWHUQDOGLPHQVLRQV7KHYDULRXVPDQXIDFWXUHUHODWHGWROHUDQFHVIRUUROOHGVHFWLRQV ZHUHDGGHGXS
IRUWKHLQWHUQDOGLPHQVLRQVDQGVWDWHGLQWKHWDEOH

7ROHUDQFHVIRUVKDSHGUROOHGVHFWLRQVIURP6WDKOEDX]HQWUXP6FKZHL]

+($

+($

+($

+($

+($

+($

+($

+($

+($

+($

+($

+($

+($

+($

+($

)ODQJH7KLFNQHVV
6HFWLRQ0RGXOXV
0RPHQWRIQHUWLD
WZ
WI
>N1@
>PP@
+($
:HE7KLFNQHVV
D PD[)G
)LOOHW
6HFWLRQ+HLJKW
PD[6XSSRUWLQJ:LGWK
KL
6HFWLRQ:LGWK
'LPHQVLRQDOWROHUDQFH
KL
PD[6XSSRUWIRUFHIURP
/RZHU)ODQJH%HQGLQJ
QQHU&OHDUDQFHKHLJKW
7DEOH+($IRUXVHDVIOXVKMRLVWV

>FPu@ >FP@
>PP@

>PP@
+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

+(%

)LOOHW
:HE7KLFNQHVV
)ODQJH7KLFNQHVV
6HFWLRQ0RGXOXV
0RPHQWRIQHUWLD
D PD[)G
6HFWLRQ+HLJKW
6HFWLRQ:LGWK
PD[6XSSRUWLQJ:LGWK
KL
/RZHU)ODQJH%HQGLQJ
'LPHQVLRQDOWROHUDQFH
KL
PD[6XSSRUWIRUFHIURP
QQHU&OHDUDQFHKHLJKW
7DEOH+(%IRUXVHDVIOXVKMRLVWV
WZ
WI
>PP@
>N1@

>FPu@ >FP@

-RLQLQJWHFKQLTXHV3LQW\SHIDVWHQHUVDQGWKHLUORDGEHDULQJFDSDFLW\
3LQW\SHIDVWHQHUVDQGWKHLUORDGEHDULQJFDSDFLW\
*HQHUDO
7KHORDGEHDULQJFDSDFLW\RISLQW\SHIDVWHQHUVLQFURVVODPLQDWHGWLPEHUHOHPHQWVLVUHJXODWHGGLI
IHUHQWO\
6RPHSURGXFWDSSURYDOVLQFOXGHUHJXODWLRQVRQPHFKDQLFDOIDVWHQHUVLQSDUWUHIHUHQFHLVPDGHWR
(XURFRGH IRU GHWHUPLQDWLRQ RI WKH ORDGEHDULQJ FDSDFLW\ RI WKH IDVWHQHUV Q VRPH WHFKQLFDO DS
SURYDOVIDVWHQHUVLQFURVVODPLQDWHGWLPEHUDUHGHVFULEHGVHSDUDWHO\
QSUDFWLFHGHWHUPLQDWLRQRIWKHORDGEHDULQJFDSDFLW\RIIDVWHQHUVLVFRPPRQO\SHUIRUPHGDFFRUG
LQJ WR %OD XQG 8LEHO 2Q WKH EDVLV RI D FRPSUHKHQVLYH UHVHDUFK SURMHFW DERXW WKH ORDG
EHDULQJ DQG GHIRUPDWLRQ EHKDYLRXU RI SLQW\SH IDVWHQHUV LQ FURVVODPLQDWHG WLPEHU VWUXFWXUDO GH
VLJQVXJJHVWLRQVIRUFRQQHFWLRQVLQWKHVXUIDFHVDOVRFDOOHGODWHUDOIDFHVDQGIURQWIDFHVDOVRFDOOHG
QDUURZVLGHVZHUHGHYHORSHGE\%ODXQG8LEHODWWKHQVWLWXWHIRU7LPEHU(QJLQHHULQJDQG
6WUXFWXUDO'HVLJQRI.DUOVUXKH8QLYHUVLW\RI$SSOLHG6FLHQFHV7+.DUOVUXKH7KHVHVWUXFWXUDOGHVLJQ
VXJJHVWLRQVZHUHLQSDUWFRQVLGHUHGLQWKHDSSURYDOVIRUFURVVODPLQDWHGWLPEHUHOHPHQWV$W*UD]
8QLYHUVLW\ RI 7HFKQRORJ\ 78 *UD] UHVHDUFK SURMHFWV RI WKH VXEMHFW ZHUH OLNHZLVH SHUIRUPHG E\
6FKLFNKRIHUHWDO)LQDOO\LWVKRXOGEHQRWHGWKDW(XURSHDQWHFKQLFDODSSURYDOVIRUVFUHZVLQ
FURVVODPLQDWHGWLPEHUDUHDOUHDG\SUHVHQW
0LQLPXPGHVLJQVFUHZFRQQHFWLRQ
7KH VSHFLILFDWLRQ RI D PLQLPXP GHVLJQ VFUHZ FRQQHFWLRQ LQ MRLQWV RI ORDGEHDULQJ FURVVODPLQDWHG
WLPEHU HOHPHQWV DV IRU H[DPSOH EHWZHHQ DGMDFHQW FHLOLQJ HOHPHQWV EHWZHHQ FHLOLQJ DQG ZDOO RU
EHWZHHQ WZR ZDOOV LV FRQWLQXRXVO\ GLVFXVVHG 7KH DXWKRUV DGYLVH GHVLJQHUV GHSHQGLQJ RQ WKH UH
VSHFWLYH EXLOGLQJ SURMHFW WR VSHFLI\ D PLQLPXP GHVLJQ VFUHZFRQQHFWLRQ IRU WKH HQWLUH SURMHFW IRU
H[DPSOHWKUHHSLHFHVRIVHOIWDSSLQJIXOO\WKUHDGHGVFUHZVG PPHFPZLWKVSHFLILFDWLRQRI
WKHVFUHZLQGHSWKGHSHQGLQJRQWKHHOHPHQWWKLFNQHVV
6HOIWDSSLQJZRRGVFUHZV
:LWK SUHGRPLQDQWO\ VWDWLF ORDG WKH XVH RI ZRRGVFUHZV ZLWK D PLQLPXP WHQVLOH VWUHQJWK RI
IXN 1 PP LV DVVXPHG )RU G\QDPLF DOWHUQDWLQJ VWUHVV VHSDUDWH FRQVLGHUDWLRQV PXVW EH XQ
GHUWDNHQ
:LWKGUDZDORIVHOIWDSSLQJZRRGVFUHZV
7KHD[LDOORDGEHDULQJFDSDFLW\RIFRQQHFWLRQVZLWKVHOIWDSSLQJZRRGVFUHZVGHSHQGVRQWKHUHVLV
WDQFHDJDLQVWZLWKGUDZDOWKHWHQVLOHORDGEHDULQJFDSDFLW\RIWKHVFUHZVFRUHFURVVVHFWLRQDQGIRU
SDUWLDOO\WKUHDGHGVFUHZVRQWKHUHVLVWDQFHDJDLQVWSXOOLQJWKURXJK

-RLQLQJWHFKQLTXHV6HOIWDSSLQJZRRGVFUHZV
)RU IXOO\ RU SDUWLDOO\ WKUHDGHG VHOIWDSSLQJ ZRRGVFUHZV WKH FKDUDFWHULVWLF YDOXH RI WKH UHVLVWDQFH
DJDLQVWZLWKGUDZDOFDQEHFDOFXODWHGDFFRUGLQJWR%ODXQG8LEHODVIROORZV

)D[N
G
HI
FRVt VLQt

)D[N 5HVLVWDQFHDJDLQVWZLWKGUDZDOFKDUDFWHULVWLFYDOXHLQ>1@
G 1RPLQDOGLDPHWHURIWKHVFUHZLQ>PP@RXWHUWKUHDGGLDPHWHU

HI (IIHFWLYHVFUHZLQGHSWKLQ>PP@LQFOXGLQJWKHVFUHZWLS
HI PLQ
G
6FUHZLQDQJOHWRWKHILEUH

)LJXUH5HGXFWLRQLQWHQVLOHVWUHQJWKDVDIXQFWLRQRIWKHDQJOHWRWKHILEUH

)RU IXN 1 PPt ORDGEHDULQJFDSDFLW\FODVVDFFRUGLQJWR '1WKH WHQVLOHORDGEHDULQJFD
SDFLW\RIWKHVFUHZLQWKHFRUHFURVVVHFWLRQFDQEHGHWHUPLQHGDFFRUGLQJWRWKHIROORZLQJIRUPXOD
$FFRUGLQJ WR WKH DSSURYDOV RI WKH GLIIHUHQW VFUHZV KLJKHU ORDGEHDULQJ FDSDFLWLHV DUH DFKLHYHG DW
WLPHV
)D[N
IXN
G

IXN
( G )

( G )

)RUDFRQQHFWLRQZLWKDJURXSRIVFUHZVWKHVWDWLFDOO\HIIHFWLYHQXPEHUKDVWREHGHWHUPLQHGDVIRO

ORZV
QHI
Q

(13DUDJUDSK

:LWKGUDZDORIVFUHZVIURPWKHIURQWIDFH

)LJXUH)DVWHQHUVLQWKHIURQWIDFHDOVRQDUURZVLGHVXEMHFWWRZLWKGUDZDO

3UHUHTXLVLWHV
7KUHDGGLDPHWHURIWKHVFUHZV G PP
&RUHGLDPHWHURIWKHVFUHZV G G
0LQLPXPWLPEHUWKLFNQHVV
QGLYLGXDOOD\HU W G [PP]
&URVVODPLQDWHGWLPEHUHOHPHQW W&/7 G [PP]
0LQLPXPVFUHZLQGHSWK HI G
$WOHDVWWZRVFUHZVSHUURZRIIDVWHQHUV
)RU IURQWIDFH VFUHZ FRQQHFWLRQV WKH EXON GHQVLW\ RI WKH ERDUG OD\HUV LV XVHG
N NJ P

)LJXUH6WUHVVLQIURQWIDFHVFUHZFRQQHFWLRQV

)RU WHQVLOH FRQQHFWLRQV LQ WKH IURQW IDFH RI FURVVODPLQDWHG WLPEHU QRUPDOO\ LW FDQQRW EH HQVXUHG
WKDW WKHVFUHZJHWVWRUHVWLQWKHFHQWUHRIDVLGHPHPEHU7KHUHIRUHLWLVFRQVHUYDWLYHO\DVVXPHG
WKDWWKHVFUHZD[LVOLHVLQWKHGLUHFWLRQRIWKHILEUH LQHTXDWLRQ

)D[N
G
HI

>1@

6RIDUWKHUHDUHRQO\IHZILQGLQJVDERXWWKHORQJWHUPEHKDYLRXURIVFUHZVVFUHZHGLQLQSDUDOOHOWR
WKH ILEUH /RQJWHUP WHVWV DUH FXUUHQWO\ XQGHUWDNHQ DW .DUOVUXKH 8QLYHUVLW\ ZKLFK SRLQW WRZDUGV
ORZHUORDGEHDULQJFDSDFLWLHVRIZRRGVFUHZVVFUHZHGLQLQSDUDOOHOWRWKHILEUHQRUGHUWRSUHYHQW
WUDQVYHUVHWHQVLOHIDLOXUHWUDQVYHUVHWHQVLOHVHFXULQJZLWKDGGLWLRQDOWUDQVYHUVHVFUHZFRQQHFWLRQVLV
UHFRPPHQGHG
7KHUHIRUHLWLVUHFRPPHQGHGWRVFUHZWKHVFUHZVRQO\LQWROD\HUVWUDQVYHUVHWRWKHILEUHXQWLOWKH
WHVWUHVXOWVIRUWHQVLRQEHFRPHDYDLODEOH
)RU ORDG DSSOLFDWLRQ RI WHQVLOH IRUFHV LQ WKH HOHPHQW SODQH WKH DXWKRUV VXJJHVW FRPSOLDQFH ZLWK D
PLQLPXP LQFOLQDWLRQ RI r WR WKH GLUHFWLRQ RI ILEUH LQ RUGHU WR SUHYHQW VFUHZV UHVWLQJ LQ WKH HQG
JUDLQDVVKRZQLQ)LJXUHDQG)LJXUH7KHUHVLVWDQFHRIWKHVFUHZVDJDLQVWZLWKGUDZDOIURP
WKHWLPEHUVKRXOGEHUHGXFHGWRGXHWRWKHORQJWHUPORDGEHDULQJFDSDFLW\PHQWLRQHG

)LJXUH6XVSHQVLRQXVLQJIXOO\WKUHDGHGVFUHZVLQFOLQHGLQWKHZDOOSODQH


)LJXUH6XVSHQVLRQXVLQJIXOO\WKUHDGHGVFUHZVLQFOLQHGRXWRIWKHZDOOSODQH

7DEOH5HVLVWDQFHVDJDLQVWZLWKGUDZDORIVFUHZSDLUV
([WUDFWLRQ5HVLVWDQFH5D[ GLQ>N1@
SHUVFUHZSDLUr
3XOORXW
G>PP@

7KUHDG/HQJWK/HIVLGHRIVFUHZWLS>PP@

7KH UHVLVWDQFHV DJDLQVW ZLWKGUDZDO LQ 7DEOH DSSO\ WR XS WR IRXU SDLUV RI VFUHZV DFWLQJ WRJHWKHU
DQGDPHGLXPORDGGXUDWLRQ NPRG 1./DQG7KHWKUHDGOHQJWK HI FDQEHUHWULHYHGIURP
)LJXUH)RURWKHUQXPEHUVRISDLUVRIVFUHZVWKHGHVLJQYDOXHVPXVWEHPXOWLSOLHGZLWKWKHIRO
ORZLQJFRQYHUVLRQIDFWRUV

7DEOH&RQYHUVLRQIDFWRUVSHUQXPEHURISDLUVRIVFUHZV
1XPEHURI6FUHZ3DLUV
)DFWRU

)RU FRQQHFWLRQ RI WZR FURVVODPLQDWHG WLPEHU HOHPHQWV WKH VFUHZLQ GHSWK HI GHVLJQDWHG LQ
)LJXUHDQG)LJXUHPXVWEHFRPSOLHGZLWKLQWKHWUDQVYHUVHHOHPHQW HI HI
0LQLPXPGLVWDQFHVDQGPLQLPXPGLPHQVLRQV
7KHPLQLPXPGLVWDQFHVFDQEHUHWULHYHGIURPWKHVFUHZDSSURYDOV)RUOLPLWDWLRQRIWKHGLVWDQFHV
WKHIROORZLQJYDOXHVDUHVWDWHGGLVWDQFHDPRQJRQHDQRWKHUD D yG0LQLPXPWKLFNQHVVRIWKH
HOHPHQWyGPLQLPXPZLGWKRIWKHHOHPHQWyG

:LWKGUDZDORIVFUHZVIURPWKHFURVVODPLQDWHGWLPEHUVXUIDFH

)LJXUH)DVWHQHUVLQWKHVXUIDFHDOVRODWHUDOIDFHVXEMHFWWRZLWKGUDZDO

3UHUHTXLVLWHV
7KUHDGGLDPHWHURIWKHVFUHZVGPP
&RUHGLDPHWHURIWKHVFUHZV G G
$WOHDVWWZRVFUHZVSHUFRQQHFWLRQRUSHUURZRIIDVWHQHUVUHVSHFWLYHO\
6FUHZLQJLQGHSWKDWOHDVWWKUHHERDUGOD\HUVDQG HI G
)RUVFUHZFRQQHFWLRQVLQWKHVXUIDFHWKHEXONGHQVLW\RIWKHRYHUDOOFURVVVHFWLRQLV
XVHG N
NJ P

)RUVFUHZFRQQHFWLRQVLQWKHVXUIDFHZLWK WKHIROORZLQJUHVXOWVIURPHTXDWLRQ
5D[N
G
HI >1@

7DEOH:LWKGUDZDOUHVLVWDQFHVRIVFUHZV
([WUDFWLRQ5HVLVWDQFH
IURPWKH(OHPHQW6XUIDFH
5D[GLQ>N1@
MH6FKUDXEH
G>PP@

7KUHDG/HQJWK/HI>PP@

7KH ZLWKGUDZDO UHVLVWDQFHV DSSO\ WR XS WR IRXU VFUHZV DFWLQJ MRLQWO\ IRU D PHGLXP ORDG GXUDWLRQ
NPRG XWLOLVDWLRQFODVVHVDQG)RUDQ\RWKHUQXPEHURIVFUHZVWKHGHVLJQYDOXHVPXVWEH
PXOWLSOLHGZLWKWKHIROORZLQJFRQYHUVLRQIDFWRUV

7DEOH&RQYHUVLRQIDFWRUVSHUQXPEHURIVFUHZV
1XPEHURI6FUHZV
)DFWRU

0LQLPXPGLVWDQFHVDQGPLQLPXPGLPHQVLRQV
7KHPLQLPXPGLVWDQFHVFDQEHUHWULHYHGIURPWKHVFUHZDSSURYDOV)RUOLPLWDWLRQRIWKHGLVWDQFHV
WKHIROORZLQJYDOXHVDUHVWDWHGGLVWDQFHDPRQJRQHDQRWKHUORQJLWXGLQDODQGWUDQVYHUVHWRWKHGL
UHFWLRQRIWKHWRSOD\HUD D yGPLQLPXPWKLFNQHVVRIWKHHOHPHQWyGPLQLPXPZLGWKRIWKH
HOHPHQWyG

6KHDULQJRIIRIVFUHZV
6KHDULQJRIIRIVFUHZVLQWKHIURQWIDFH

)LJXUH)DVWHQHUVLQWKHIURQWIDFHVXEMHFWWRVKHDULQJRII
3UHUHTXLVLWHV
0LQLPXPGLDPHWHURIWKHVFUHZVGPP
0LQLPXPVFUHZLQGHSWK HI G

)RUVHOIWDSSLQJZRRGVFUHZVDFFRUGLQJWR%ODXQG8LEHODFKDUDFWHULVWLFYDOXHRIWKHHPEHGGLQJ
VWUHQJWKFDQEHFDOFXODWHGDVIROORZV
IKN

G
>1PPt@

G 1RPLQDOGLDPHWHURIWKHVFUHZVLQ>PP@
7KHVFUHZVFDQEHVFUHZHGLQWRORQJJUDLQDVZHOODVHQGJUDLQRIWKHIURQWIDFH3RVVLEOHMRLQWVEH
WZHHQWKHERDUGVRIQRPRUHWKDQPPVHHPD\UHPDLQXQFRQVLGHUHG

(PEHGGLQJVWUHQJWKIRUIXOO\WKUHDGHGVFUHZVLQWKHQDUURZVLGH
IRUG PP IKN
1 PP
1 PP
IRUG PP IKN
7KHORDGEHDULQJFDSDFLW\RIWKHIDVWHQHUPXVWEHGHWHUPLQHGDFFRUGLQJWRWKH-RKDQVHQWKHRU\DQG
WKHIRUPXODVIURP(13DUDJUDSK

8SRQFRQQHFWLRQZLWKDJURXSRIVFUHZVWKHVWDWLFDOO\HIIHFWLYHQXPEHURIFRQVHFXWLYHVFUHZVPXVW

EHGHWHUPLQHGDVIROORZV
QHI
Q

7KLVYDOXHDSSOLHVWRDVFUHZGLVWDQFHRI D yG IURP D yG WKHUHGXFWLRQPD\EHRPLWWHG

(13DUDJUDSK

0LQLPXPGLVWDQFHV

)LJXUH0LQLPXPGLVWDQFHVRIVHOIWDSSLQJZRRGVFUHZVLQWKHQDUURZVLGH
(GJHGLVWDQFH
'LVWDQFH
7DEOH0LQLPXPGLVWDQFHVRIVHOIWDSSLQJZRRGVFUHZVLQWKHQDUURZVLGH
LQWKHGLUHFWLRQRIWKHHOHPHQWVLGH
D
yG
WUDQVYHUVHWRWKHHOHPHQWVXUIDFH
D
yG
VWUHVVHGHGJH
DW
yG
QRQVWUHVVHGHGJHRIWKHWRSOD\HU
DF
yG
VWUHVVHGHGJHWRWKHHOHPHQWVXUIDFH
DW
yG
QRQVWUHVVHGHGJHWRWKHHOHPHQWVXUIDFH
DF
yG
6KHDULQJRIIRIVFUHZVLQWKHHOHPHQWVXUIDFH
7KHRSWLPDODUUDQJHPHQWRIIXOO\WKUHDGHGVFUHZVLVLQWKHGLUHFWLRQRIORDGVLQFHWKHWHQVLOHORDG

EHDULQJFDSDFLW\LVPDQ\WLPHVKLJKHUDQGWKXVWKHHFRQRP\LQFUHDVHV

6HHDOVR(17DEOH7KLV7DEOHLVUHIHUHQFHGLQVRPH7HFKQLFDO$SSURYDOVIRUIXOO\WKUHDGHGVFUHZV


)LJXUH)DVWHQHUVLQWKHVXUIDFHVXEMHFWWRVKHDULQJRII

3UHUHTXLVLWHV
0LQLPXPGLDPHWHURIWKHVFUHZV G PP
&URVVODPLQDWHGWLPEHUZLWKERDUGOD\HUWKLFNQHVVHV W L PP
6FUHZLQGHSWKDWOHDVWWKUHHERDUGOD\HUV

)RU IXOO\ WKUHDGHG VHOIWDSSLQJ ZRRGVFUHZV WKH HPEHGGLQJ VWUHQJWK FDQ EH FDOFXODWHG DFFRUGLQJ WR %OD
XQG8LEHO

IKN

%N
G 1 PP

G 1RPLQDOGLDPHWHURIWKHVFUHZVLQ>PP@
%N &KDUDFWHULVWLFEXONGHQVLW\RIWKHVWDUWLQJPDWHULDOLQNJPu
UHFRPPHQGHGIRU& %N NJ P

(PEHGGLQJVWUHQJWKIRUIXOO\WKUHDGHGVFUHZVLQWKHHOHPHQWVXUIDFH
IRUG PP IKN 1 PP
IRUG PP IKN 1 PP
IRUG PP IKN 1 PP

7KHORDGEHDULQJFDSDFLW\RIWKHIDVWHQHUPXVWEHGHWHUPLQHGDFFRUGLQJWRWKH-RKDQVHQWKHRU\DQG
WKHIRUPXODVIURP(1
)RUFRQQHFWLRQZLWKDJURXSRIVFUHZVLQWKHHOHPHQWVXUIDFHLWLVQRWQHFHVVDU\WRUHGXFHWKHVWDWL
FDOO\HIIHFWLYHQXPEHURIIDVWHQHUV:LWKWKHHOHPHQWEXLOGXSWUDQVYHUVHWHQVLOHUHLQIRUFHPHQWFDQ
EHDVVXPHGEULWWOHIDLOXUHE\VSOLWWLQJGRHVQRWRFFXU
QHI
Q

1RWH'HSHQGLQJRQWKHUHVSHFWLYHPDQXIDFWXUHURIWKHIDVWHQHUVUHGXFWLRQVDUHVWDWHGLIWKHIDV
WHQHUVDUHDUUDQJHGFRQVHFXWLYHO\LQWKHGLUHFWLRQRIILEUH
Q WKH IROORZLQJ YDULRXV DSSOLFDWLRQV DUH DQDO\VHG DFFRUGLQJ WR WKLV WKHRU\ WDNLQJ WKH HPEHGGLQJ
VWUHQJWKVDFFRUGLQJWR%ODXQG8LEHODVDEDVLV

0LQLPXPGLVWDQFHV

)LJXUH'HVLJQDWLRQRIWKHPLQLPXPGLVWDQFHVRIVFUHZVLQWKHHOHPHQWVXUIDFH

7KHPLQLPXPGLVWDQFHVDUHUHJXODWHGLQWKHSURGXFWDSSURYDOVRIWKHVFUHZPDQXIDFWXUHUVGHVLJ
QDWLRQ RI WKH PLQLPXP GLVWDQFHV LV XQGHUWDNHQ DFFRUGLQJ WR )LJXUH 1RUPDOO\ WKH PLQLPXP

GLVWDQFHVDFFRUGLQJWR7DEOHDSSO\ ZKLFKDUHXQGHUFXWLQVRPHSURGXFWDSSURYDOV

7DEOH0LQLPXPGLVWDQFHVRIVHOIWDSSLQJZRRGVFUHZVLQWKHHOHPHQWVXUIDFH
/RDGLQ
WKH
(GJHGLVWDQFH
'LVWDQFH
/RDGDWDQJOHWR /RDGWUDQVYHUVHWR
WKH
WKH
LQWKHGLUHFWLRQRIILEUHRIWKHWRSOD\HU
D
yG
( FRV ) G
yG
D
yG
( yVLQ ) G
yG
VWUHVVHGHGJHRIWKHWRSOD\HU
DW
yG
( FRV ) G
yG
QRQVWUHVVHGHGJHRIWKHWRSOD\HU
DF
VWUHVVHGHGJHRIWKHWUDQVYHUVHOD\HU
DW
DWULJKWDQJOHVWRWKHGLUHFWLRQRIILEUHRI
WKHWRSOD\HU
'LUHFWLRQRIILEUHRIWKHWRSOD\HU
yG
yG
( VLQ ) G
QRQVWUHVVHG HGJH RI WKH WUDQVYHUVH DF

OD\HU
yG
yG

7KHPLQLPXPGLVWDQFHVRIWKHVFUHZVWRWKHHGJHVDUHVKRZQLQ)LJXUHLQWKHIRUPRIDWHP
SODWH7KHWHPSODWHPXVWEHSRVLWLRQHGVXFKWKDWWKHGLUHFWLRQRIILEUHRIWKHWRSOD\HUFRUUHVSRQGV
WR WKH GLUHFWLRQ LQGLFDWHG DQG WKH VFUHZ IRUFH OLHV LQ WKH KDWFKHG DUHD 7KH HGJH GLVWDQFHV DW WKH
VWUHVVHGHGJHVGHSHQGLQJRQWKHORDGDQJOHFDQEHUHDGYLDWKHFXUYHVHQWHUHG

&RUUHVSRQGLQJWR1250SU%GUDIWRI$XVWULDQQDWLRQDODQQH[


)LJXUH7HPSODWHIRUPLQLPXPGLVWDQFHVRIVFUHZVLQWKHHOHPHQWVXUIDFHWRWKHHOHPHQWHGJH
7KHPLQLPXPGLVWDQFHVRIWKHVFUHZVDPRQJRQHDQRWKHUDUHVKRZQLQ)LJXUHDVDWHPSODWH
7KHWHPSODWHPXVWEHSRVLWLRQHGVXFKWKDWWKHGLUHFWLRQRIILEUHRIWKHWRSOD\HUFRUUHVSRQGVWRWKH
GLUHFWLRQLQGLFDWHGDQGWKHVFUHZIRUFHOLHVLQWKHKDWFKHGDUHD7KHHGJHGLVWDQFHVDWWKHVWUHVVHG
HGJHVGHSHQGLQJRQWKHORDGDQJOHFDQEHUHDGYLDWKHFXUYHVHQWHUHG

)LJXUH7HPSODWHIRUPLQLPXPGLVWDQFHVRIVFUHZVLQWKHHOHPHQWVXUIDFHDPRQJRQHDQRWKHU

3UHGHVLJQWDEOHVIRUVKHDULQJRIIRIVHOIWDSSLQJZRRGVFUHZV
'HVLJQYDOXHVIRUFRQQHFWLRQRIDFURVVODPLQDWHGWLPEHUFHLOLQJWRDEHDPPDGHRIVROLGRUJOXHG
ODPLQDWHGWLPEHU$VVXPSWLRQV NPRG P VXVSHQVLRQHIIHFWFRQVLGHUHG 59G )9G )D[G
7DEOH5HVLVWDQFHDJDLQVWVKHDULQJRIISDUWLDOO\WKUHDGHGVFUHZV7*6
5YG
>N1SF@
IRUSDUWLDOO\WKUHDGHGVFUHZVZLWKFRXQWHUVXQNKHDG
/RQJJUDLQWLPEHUWKLFNQHVVW PP
6FUHZLQOHQJWKHIPP
G PP
G PP

6ROLGWLPEHUJOXHGODPLQDWGWLPEHU
)LJXUH6KHDULQJRIIRIVHOIWDSSLQJZRRGVFUHZV
7DEOH5HVLVWDQFHDJDLQVWVKHDULQJRIIIXOO\WKUHDGHGVFUHZV9*6G PP
5YG
>N1SF@
IRUIXOO\WKUHDGHGVFUHZVZLWKG PP
/RQJJUDLQWLPEHUWKLFNQHVVW>PP@

6FUHZLQOHQJWKHIPP

6FUHZLQOHQJWKHI PP

6FUHZLQOHQJWKHIPP

7DEOH5HVLVWDQFHDJDLQVWVKHDULQJRIIIXOO\WKUHDGHGVFUHZVG PP
5YG
>N1SF@
/RQJJUDLQWLPEHUWKLFNQHVVW>PP@

6FUHZLQOHQJWKHIPP

6FUHZLQOHQJWKHI PP

6FUHZLQOHQJWKHIPP

6ROLGWLPEHUJOXHGODPLQDWGWLPEHU
)LJXUH3UHGHVLJQWDEOHVIRUVKHDULQJRIIRIVHOIWDSSLQJZRRGVFUHZV

$VVXPHGVFUHZKHDGGLDPHWHU GN = G

'HVLJQYDOXHVIRUFRQQHFWLRQRIDFURVVODPLQDWHGWLPEHUFHLOLQJWRDZDOOPDGHRIFURVVODPLQDWHG
WLPEHU$VVXPSWLRQV NPRG P 6XVSHQVLRQHIIHFWFRQVLGHUHG 59G )9G )D[G
7DEOH5HVLVWDQFHDJDLQVWVKHDULQJRIISDUWLDOO\WKUHDGHGVFUHZV7*6;/$0WR;/$0
5YG
>N1SF@
IRUSDUWLDOO\WKUHDGHGVFUHZVZLWKFRXQWHUVXQNKHDG

6FUHZGLDPHWHUG
G PP
G PP

/RQJJUDLQWLPEHUWKLFNQHVVW PP
6FUHZLQOHQJWKHIPP

)LJXUH5HVLVWDQFHDJDLQVWVKHDULQJRIIIRUSDUWLDOO\WKUHDGHGVFUHZV
7DEOH5HVLVWDQFHDJDLQVWVKHDULQJRIIIXOO\WKUHDGHGVFUHZV9*6G PP;/$0WR;/$0
5YG
>N1SF@
/RQJJUDLQWLPEHUWKLFNQHVV
W>PP@

6FUHZLQOHQJWKHIPP

6FUHZLQOHQJWKHI PP

6FUHZLQOHQJWKHIPP

)LJXUH5HVLVWDQFHDJDLQVWVKHDULQJRIIIRUIXOO\WKUHDGHGVFUHZVG PP

$VVXPHGVFUHZKHDGGLDPHWHU G N
G


7DEOH5HVLVWDQFHDJDLQVWVKHDULQJRIIIXOO\WKUHDGHGVFUHZVG PP;/$0WR;/$0
5YG
>N1SF@
/RQJJUDLQWLPEHUWKLFNQHVVW

6FUHZLQOHQJWKHIPP

6FUHZLQOHQJWKHI PP

6FUHZLQOHQJWKHIPP

)LJXUH5HVLVWDQFHDJDLQVWVKHDULQJRIIIRUIXOO\WKUHDGHGVFUHZVG PP

%UDFLQJRIEXLOGLQJVPSDFWVDQGGHVLJQVLWXDWLRQV
%UDFLQJRIEXLOGLQJV
QWKHIROORZLQJFKDSWHUWKHHVVHQWLDODVSHFWVIRUEUDFLQJRIEXLOGLQJVDUHFRQWHPSODWHG)ROORZLQJ
GHVFULSWLRQ RI WKH LPSDFWV VWDELOLW\ DQG VWRUH\ZLVH IRUFH SURJUHVVLRQ DUH H[DPLQHG )RU GLD
SKUDJPVDQGVKHDUZDOOVWKHHIIHFWVRIWKHLPSDFWIRUFHVRQLQGLYLGXDOHOHPHQWVDUHGLVFXVVHG7KH
UHTXLUHPHQWV WR MRLQLQJ WHFKQLTXHV DQG UHVSHFWLYH YHULILFDWLRQV FRQFOXGH WKH VHFWLRQV RQ WKH WZR
VWUXFWXUDOHOHPHQWV
PSDFWVDQGGHVLJQVLWXDWLRQV
:LQG

)LJXUH:LQGORDGZLWKHFFHQWULFLW\
)RUEXLOGLQJVZLWKRQO\IHZVWRUH\VWKHZLQGORDGLVDOPRVWFRQVWDQWDFURVVWKHKHLJKW7KHLPSDFW
SHUVWRUH\UHVXOWVIURPWKHVXPRIWKHVWRUH\VDERYH
UUHJXODULQFLGHQWZLQGIORZVDUHFRQVLGHUHGZLWKDORDGDSSOLFDWLRQHFFHQWULFFRPSDUHGWRWKHYHUWL
FDOEXLOGLQJD[LV7KHHFFHQWULFLW\LVGHWHUPLQHGDWRIWKHEXLOGLQJOHQJWKVXEMHFWWRWKHLQFLGHQW

IORZ &RQVLGHULQJWKLVHFFHQWULFLW\WKHZLQGORDGPD\EHFRQVLGHUHGVHSDUDWHGLQWRWKHRQHDQGWKH
RWKHUEXLOGLQJD[LV

$FFRUGLQJWR1250%6HFWLRQDQGDFFRUGLQJWR'1
6HFWLRQQ(1DJHQHUDOGHWHUPLQDWLRQLVPDGH

(DUWKTXDNH
%XLOGLQJVPXVWEHGHVLJQHGFDOFXODWHGDQGFRQVWUXFWHGLQDQHDUWKTXDNHSURRIIDVKLRQ7KHUHVSHF
WLYHUHJXODWLRQVDUHLQFOXGHGLQ(XURFRGH
%DVLFDOO\HDUWKTXDNHVDUHKRUL]RQWDODQGYHUWLFDOYLEUDWLRQVRIWKHEXLOGLQJJURXQG)URPWKHDQDO\
VLV RI FKDUDFWHULVWLF HDUWKTXDNHV HDUWKTXDNH VSHFWUXPV ZLWK PDJQLWXGHV DQG DVVRFLDWHG IUHTXHQ
FLHVDQGDPSOLWXGHVRIDFFHOHUDWLRQGXULQJDTXDNHFDQEHVWDWHG
%XLOGLQJVDUHFRQVLGHUHGDVDYLEUDWLQJV\VWHPZKLFKLVH[SRVHGWRDIRUFHGYLEUDWLRQRIWKHHDUWK
TXDNH)URPWKHHDUWKTXDNHVSHFWUXPDFFHOHUDWLRQVDVVRFLDWHGZLWKWKHQDWXUDOIUHTXHQFLHVRIWKH
EXLOGLQJFDQEHGHWHUPLQHG)URPWKHVHIRUFHVDVDFRQVHTXHQFHRIWKHHDUWKTXDNHLQWKHYHUWLFDO
DQGKRUL]RQWDOGLUHFWLRQVFDQEHGHWHUPLQHGLQWXUQE\PXOWLSOLFDWLRQZLWKWKHEXLOGLQJPDVVHV
(DUWKTXDNHVUHSUHVHQWDQH[WUDRUGLQDU\GHVLJQVLWXDWLRQLQZKLFKWKHVDIHW\OHYHOPD\EHORZHUHG
UHVSHFWLYHO\ :LWK UHVSHFWLYH UHJXODULW\ RI WKH IORRU SODQV WKH YHUWLFDO ORDGV DGGLWLRQDOO\ RFFXUULQJ
GXHWRWKHHDUWKTXDNHPD\WKXVEHDSSOLHGTXDVLVWDWLFDOO\DQGDUHQRUPDOO\DEVRUEHGZLWKRXWDGGL
WLRQDO VWUXFWXUDO PHDVXUHV Q FDVH RI KLJKHU EXLOGLQJV KRZHYHU WKH KRUL]RQWDOO\ DFWLQJ IRUFHV RI
PDVVLQHUWLDH[FHHGWKHIRUFHVIURPZLQGPRVWO\IURPDERXWWKUHHVWRUH\VXSZDUG7KH\PXVWEH
YHULILHGE\FDOFXODWLRQDQGFRQVLGHUHGLQFRQVWUXFWLRQ
QWKHSUHVHQWJXLGHOLQH WKHFRPSOH[VXEMHFWRIHDUWKTXDNHVFDQRQO\EHGHDOWZLWKLQDVLPSOLILHG

DQGKLJKO\DEULGJHGPDQQHU)RUPRUHH[DFWDQDO\VHVUHIHUHQFHLVPDGHWRWKHOLWHUDWXUH

(DUWKTXDNHUHVLVWDQWGHVLJQ
7KHGHVLJQZLWKDUUDQJHPHQWRIEUDFLQJHOHPHQWVLQWKHIORRUSODQDQGEXLOGLQJJHRPHWU\LQWKHHOH
YDWLRQ KDV VXEVWDQWLDO LQIOXHQFH RQ WKH VHLVPLF SHUIRUPDQFH RI EXLOGLQJV 0DVV FRQFHQWUDWLRQV DW
JUHDWHUKHLJKWVDQGHOHYDWLRQVZLWKIUHHJURXQGIORRU]RQHVKDYHDQXQIDYRXUDEOHHIIHFW)DYRXUDEOH
LV WKH UHJXODU DUUDQJHPHQW RI EUDFLQJ HOHPHQWV LQ WKH IORRU SODQ ZKLFK VKRXOG FRQWLQXH HTXDOO\
DFURVV DOO VWRUH\V 7KHUHE\ PDVV FHQWUH DQG FHQWUH RI JUDYLW\ RI WKH HOHPHQW UHPDLQ FORVH WR RQH
DQRWKHUDQGWZLVWLQJLQWKHIORRUSODQGXHWRWRUVLRQLVDYRLGHG7KHVHLVPLFSHUIRUPDQFHLVDOVRLQ
IOXHQFHGE\WKHFKRLFHDQGGHVLJQRIQRQORDGEHDULQJHOHPHQWV
(XURFRGH VWDWHV UHVSHFWLYH GHVLJQ VSHFLILFDWLRQV7KXV VWUXFWXUDO VLPSOLFLW\ UHJXODULW\ V\PPHWU\
DQG UHGXQGDQF\ HTXDO VWUHQJWK LQ ERWK GLUHFWLRQV WKH IRUPDWLRQ RI GLDSKUDJPV DQG VXIILFLHQW
IRXQGDWLRQ DUH VXEVWDQWLDO IRU HDUWKTXDNHUHVLVWDQW FRQVWUXFWLRQ 6WRUH\ZLVH SURMHFWLRQV DQG UH
FHVVHVDUHQRWSHUPLWWHGIRUVLPSOLILHGHDUWKTXDNHYHULILFDWLRQ
7KHIRUPDWLRQRIDUHGXQGDQWVWUXFWXUHLVVLJQLILFDQWLQRUGHUWREHDEOHWRJXDUDQWHHORDGEHDULQJ
UHVHUYHVDOVRXSRQIDLOXUHRIVWUXFWXUDOFRPSRQHQWV)DLOXUHRIDVWUXFWXUDOHOHPHQWPXVWQRWUHVXOW
LQ IDLOXUH RI RWKHU VWUXFWXUDO HOHPHQWV DQG PXVW QRW SURSDJDWH DV D SURJUHVVLYH FROODSVH WKURXJK
ODUJHSDUWVRUWKHHQWLUHW\RIWKHEXLOGLQJ

%'=%UXQQHUHWDO*LDUGLQLHWDO/LJQXP5LQJKRIHUXQG6FKLFNKRIHU6DQGKDDV
:DOWHUXQG)ULW]HQDQG:DOWKHUXQG:LHVHQNPSIHU

6WUXFWXUDOFDOFXODWLRQ

Q(XURFRGHWKHVLPSOLILHGUHVSRQVHVSHFWUXPVPHWKRGLVGHVFULEHGIRUVLPSOLILHGFDOFXODWLRQV 7KH
HDUWKTXDNHLVDVVXPHGDVDVWDWLFKRUL]RQWDOVXEVWLWXWHORDG+RUL]RQWDODFFHOHUDWLRQLVGHWHUPLQHG
IURP WKH HDUWKTXDNH VSHFWUXP IRU WKH ILUVW QDWXUDO IUHTXHQF\ +LJKHU QDWXUDO IUHTXHQFLHV DUH QH
JOHFWHG

)LJXUH6XEVWLWXWHPHPEHUZLWKGLVWULEXWLRQRIWKHVXEVWLWXWHIRUFHDFURVVWKHEXLOGLQJKHLJKW

&DOFXODWLRQVHTXHQFH
QWKHIROORZLQJWKHFDOFXODWLRQVHTXHQFHLVGHVFULEHGYHU\EURDGO\$PRUHH[DFWDQDO\VLVFRQVLGHU
LQJ(XURFRGHLVLQGLVSHQVDEOH

/RFDWLRQIRUJURXQGDFFHOHUDWLRQ
)URPWKHHDUWKTXDNH]RQHLQWKHQDWLRQDO$QQH[WKHJURXQGDFFHOHUDWLRQRQWKHJURXQGLV
GHWHUPLQHG D J
8QGHUJURXQGFRQGLWLRQVIRUHDUWKTXDNHVSHFWUXP

'HSHQGLQJRQWKHVXEVRLOFODVV WKHSDUDPHWHUV67%7&7' XVHGLQ(XURFRGHIRUGHVFULS

WLRQRIWKHHDUWKTXDNHVSHFWUXPDUHGHWHUPLQHG

(16HFWLRQ
(17DEOH
(16HFWLRQ


)LJXUH([DPSOHIRUDQLQWHQVLW\VSHFWUXPDFFRUGLQJWR(1

6LJQLILFDQFHFDWHJRU\DQGFRHIILFLHQWRIVLJQLILFDQFH
)URPWKHVLJQLILFDQFHFDWHJRU\RIWKHREMHFWWKHFRHIILFLHQWRIVLJQLILFDQFH LVGHWHUPLQHG

7DEOH6LJQLILFDQFHFDWHJRULHVDQGFRHIILFLHQWVRIVLJQLILFDQFHE\W\SHRIEXLOGLQJ
6LJQLILFDQFH
%XLOGLQJV
FDWHJRU\
$JULFXOWXUDOEXLOGLQJVORZVLJQLILFDQFHIRUSXEOLFVDIHW\
5HVLGHQWLDOEXLOGLQJVRIILFHEXLOGLQJVDQGRWKHUFRPPRQ
IUHTXHQWO\

EXLOGLQJV
6FKRROVDVVHPEOLHVFXOWXUDOIDFLOLWLHVHDUWKTXDNHUHVLVWDQFH
!DERXW
LVLPSRUWDQW
9
+RVSLWDOVILUHVWDWLRQVSRZHUVWDWLRQVHWFLQWDFWQHVVGXU
!DERXW
LQJDQHDUWKTXDNHLVRIKLJKHVWLPSRUWDQFH

0DVVGHWHUPLQDWLRQSHUVWRUH\
)RUWKHEXLOGLQJPDVVWKHTXDVLSHUPDQHQWSRUWLRQRIWKHOLYHORDGVLVFRQVLGHUHG
P
J N QN
7KHPDVVHVDUHDSSOLHGDWWKHKHLJKWRIWKHIORRUV

%DVLFGXUDWLRQRIYLEUDWLRQ
7KHEDVLFGXUDWLRQRIYLEUDWLRQ 7 LVDQLPSRUWDQWPHDVXUHIRUHDUWKTXDNHFDOFXODWLRQVLQFH
KRUL]RQWDODFFHOHUDWLRQDQGWKXVWKHLPSDFWVRQWKHVWUXFWXUHGHSHQGRQLW

7KHEDVLFGXUDWLRQRIYLEUDWLRQFDQEHHVWLPDWHGIURPWKHIROORZLQJIRUPXODZKLFKLVEDVHGRQ
WKH5D\OHLJKTXRWLHQW
7 X

X +RUL]RQWDOGLVSODFHPHQWRIWKHXSSHUHGJHRIWKHEXLOGLQJIURPWKHTXDVL
SHUPDQHQWYHUWLFDOORDGVDSSOLHGLQWKHKRUL]RQWDOGLUHFWLRQ T JN QN
3UHUHTXLVLWHIRUWKHVLPSOLILHGPHWKRG
$VDSUHUHTXLVLWHIRUWKHVLPSOLILHGPHWKRGWKHUHTXLUHPHQWVWRUHJXODULW\LQIORRUSODQDQGHOH

YDWLRQDFFRUGLQJWR(1 PXVWEHFRPSOLHGZLWK

)XUWKHUPRUHWKHPLQLPXPEDVLFGXUDWLRQRIYLEUDWLRQPXVWEHFRPSOLHGZLWK
VHF
7

7&

7& 3DUDPHWHURIWKHHDUWKTXDNHVSHFWUXP'HSHQGLQJRQWKHVXEVRLOFODVVWKLVLV
7&
VHF

'XFWLOLW\FODVV
'HSHQGLQJRQWKHGXFWLOLW\FODVVWKHFRHIILFLHQWRIEHKDYLRXUTFDQEHGHWHUPLQHGDFFRUGLQJWR
7DEOH)RUFURVVODPLQDWHGWLPEHUVWUXFWXUHVT LVUHFRPPHQGHGZLWKVXIILFLHQWO\
GXFWLOHFRQQHFWLRQVDOVRT $QDO\VHVRIFURVVODPLQDWHGWLPEHUIRUVHLVPLFVWUHVVKDYHDOVR
DOUHDG\UHVXOWHGLQFRHIILFLHQWVRIEHKDYLRXURIT DQGPRUH

7DEOH'XFWLOLW\FODVVHVDQGPD[LPXPVRIWKHFRHIILFLHQWVRIEHKDYLRXU
/RZ HQHUJ\ GLVVLSWLRQ '&/ T &DQWLOHYHU VWUXFWXUHV JLUGHUV VWDWLFDOO\ GHWHUPLQHG VWUXF
WXUHVIUDPHZRUNVZLWKGRZHOFRQQHFWLRQV>@
FDSDFLW\
0HGLXP HQHUJ\ GLV '&0 T *OXHGVKHDUZDOOVZLWKJOXHGDUHDVRIVKHDUVWUHVVZLWKQDLO

RUVFUHZFRQQHFWLRQV>@
VSDWLRQFDSDFLW\
T 6WDWLFDOO\ RYHUGHWHUPLQHG IUDPHV ZLWK SLQW\SH RU EROW

FRQQHFWLRQV

6HFWLRQIRUUHJXODULW\LQWKHIORRUSODQDQG6HFWLRQLQWKHHOHYDWLRQ

+RUL]RQWDODFFHOHUDWLRQ
7KHKRUL]RQWDODFFHOHUDWLRQIRU7FDQEHUHDGIURPWKHVSHFWUXPDQGWKHQLV
D KRU
6 H (7 )

T

2QWKHVDIHVLGHKHUHWKHSODWHDXYDOXHRIWKHVSHFWUXPPD\DOVREHXVHG
D KRU
y D J
6

T

(DUWKTXDNHIRUFHVSHUVWRUH\
7KHHDUWKTXDNHIRUFHVDUHZHLJKWHGOLQHDUO\WRWKHKHLJKWDERYHJURXQG
)GL
)G
]L PL
)G
]L PL
P D
L
KRU

$UDQGRPWRUVLRQDOHIIHFWRIRIWKHVWRUH\GLPHQVLRQEPXVWEHFRQVLGHUHG
0G

E )G

%UDFLQJRIEXLOGLQJV6WDELOLW\
0LVDOLJQPHQW
7KHEXLOGLQJVGHIOHFWLRQRIWKHSOXPEOLQHLVQRUPDOO\DSSOLHGZLWK

7KHKRUL]RQWDOORDGIURPPLVDOLJQPHQWWKHQUHVXOWVLQ
+ 9

6WDELOLW\

)LJXUHPSDFWVDQGGLVWULEXWLRQRIWKHFRQWDFWSUHVVXUH

)XUWKHUVWDELOLW\YHULILFDWLRQVDUHWLOWLQJRIWKHREMHFWIRUWRZHUW\SHEXLOGLQJVDQGJURXQGVHHSDJHRU
VOLGLQJUHVSHFWLYHO\LQFDVHRIEDGIRXQGDWLRQFRQGLWLRQV
)RUFHSURJUHVVLRQ
)RUWKHHDUWKTXDNHFRQGLWLRQLWLVUHTXLUHGWKDWVKHDUZDOOVDUHDUUDQJHGUHJXODUO\LQWKHIORRUSODQ
DQGFRQWLQXRXVO\LQWKHHOHYDWLRQ2WKHUZLVHLWDSSOLHVWRKRUL]RQWDOORDGGLVWULEXWLRQWKDWWKHORDGV
DFFXPXODWHVWRUH\ZLVH)LJXUHDQGPD\EHFRQVLGHUHGLQDQLVRODWHGIDVKLRQIRUHDFKVWRUH\
3UHUHTXLVLWHIRUWKDWDUHDVWLIIGLDSKUDJPDQGEUDFLQJZDOOVDORQJDWOHDVWWKUHHEHWWHUIRXUD[HV
7KH EUDFLQJ ZDOO D[HV PXVW QRW KDYH D FRPPRQ LQWHUVHFWLRQ DQG PXVW QRW EH SDUDOOHO WR RQH DQ
RWKHU)RUEUDFLQJLQWHULRUDQGH[WHULRUZDOOVPD\EHLQFOXGHG

Q(16HFWLRQWKLVPLVDOLJQPHQWLVVXJJHVWHGIRUWKHDQDO\VLVRIIUDPHVDQGDUFKHVDFFRUGLQJ
WRWKHVHFRQGRUGHUWKHRU\

%UDFLQJRIEXLOGLQJV)RUFHSURJUHVVLRQ

)LJXUH+RUL]RQWDOIRUFHVSHUVWRUH\UHVXOWLQJIURPZLQGSUHVVXUHZLWKVWUHVVRQWKHVKHDUZDOOVLQ
WKHLQGLYLGXDOVWRUH\V

7KHLPSDFWVDFFXPXODWHIURPWRSWRERWWRP7KHIRUFHSHUVWRUH\LVGHWHUPLQHGDWFHLOLQJOHYHODQG
IRUWKHWRSPRVWVWRUH\UHVXOWVIURPWKHLQFLGHQWIORZDUHDRIWKHURRIDQGKDOIWKHVWRUH\KHLJKWEH
ORZ OHWWHUV ' LQ )LJXUH DQG IRU WKH VWRUH\V EHORZ UHVSHFWLYHO\ IURP KDOI WKH VWRUH\ KHLJKW
DERYHDQGEHORZOHWWHUV$WR&LQ)LJXUH

)LJXUH)RUFHSURJUHVVLRQSHUVWRUH\ZLWKYHUWLFDOORDGV

%UDFLQJRIEXLOGLQJV'LDSKUDJPV
7KHIRUFHVSHUVWRUH\DUHVKRZQLQ)LJXUH
QWKHKRUL]RQWDOFRQQHFWLRQMRLQWVDWWKHJURXQGWKHKRUL]RQWDOLPSDFWVDWFHLOLQJOHYHOUHVXOWLQWHQ
VLOHIRUFHVRQRQHVLGHRIWKHEXLOGLQJDQGLQFRPSUHVVLYHIRUFHVRQWKHRWKHUVLGH7KHVHFRPSUHV
VLYH IRUFHV DUH QRUPDOO\ VPDOO FRPSDUHG WR WKRVH IURP WKH SHUPDQHQW VXSHULPSRVHG ORDGV 7KH
WHQVLOHIRUFHVDUHVXERUGLQDWHWRWKRVHIRUFHVUHVXOWLQJIURPWKHLQGLYLGXDOVKHDUZDOOVEHLQJVHWRQ
HGJH 7KHUHIRUH WKH EXLOGLQJV EHQGLQJ DQG IRUFHV UHVXOWLQJ WKHUHIURP PD\ EH QHJOHFWHG PRVW RI
WKHWLPH)RUVOHQGHUDQGWRZHUOLNHEXLOGLQJVKRZHYHUWKH\PXVWEHFRQVLGHUHG
'LDSKUDJPV
$FFRUGLQJ WR GLDSKUDJPV DUH D SUHUHTXLVLWH IRU WKH EUDFLQJ RI EXLOGLQJV 'LDSKUDJPV UHVXOW
IURP WKH MRLQLQJ RI DGMDFHQW FHLOLQJ HOHPHQWV DORQJ WKHLU FRPPRQ MRLQWV LQWR D SODWH DV VKRZQ LQ
)LJXUH$FRQWLQXRXVGLDSKUDJPLVQHFHVVDU\WRGLVWULEXWHWKHKRUL]RQWDOORDGVWRWKHZDOOVEH
ORZDQGWRIXUWKHUWUDQVIHUWKHPLQWRWKHVWRUH\EHORZ
2SHQLQJVLQGLDSKUDJPVDUHQRUPDOO\XQSUREOHPDWLFDQGUHTXLUHVLPSOHVWUXFWXUDOPHDVXUHV

)LJXUH)ORRUSODQRIDFHLOLQJVSDQZLWKEUDFLQJVKHDUZDOOVDQGZLQGLPSDFW

7KHSRVVLEOHIDLOXUHPHFKDQLVPVRIGLDSKUDJPVDUHVKRZQLQ)LJXUHPSDFWVLQWKHGLUHFWLRQRI
WKH ORQJLWXGLQDO MRLQWV UHVXOW LQ D VKHDU IRUFHV DQG E IODQJH IRUFHV 7KH VKHDU IRUFHV LQ WKH MRLQWV
PXVW EH FRYHUHG YLD UHVSHFWLYH IDVWHQHUV DFFRUGLQJ WR )LJXUHV D DQG E SDJH 6LQFH WKH
KRUL]RQWDOLPSDFWVQRUPDOO\DFWLQERWKGLUHFWLRQVWKHIODQJHIRUFHVOLNHZLVHKDYHWREHFRQVLGHUHG
ZLWKDOWHUQDWLQJVLJQV7KH\RFFXUDVDSDLURIIRUFHVRISUHVVXUHDQGWHQVLRQDWWKHMRLQWHGJHV7KH
WHQVLRQ IODQJH IRUFHV FDQ EH DSSOLHG LQWR WKH OLQWHO EHDPV DQG ZDOO HOHPHQWV EHORZ YLD VFUHZ FRQ
QHFWLRQVDQGWUDQVIHUUHGE\WKHVH6KRXOGVWUXFWXUDOHOHPHQWVEHORZEHPLVVLQJRUVKRXOGWKHVHQRW
EHFRQWLQXRXVWKHQVXLWDEOHIDVWHQHUVDFFRUGLQJWR)LJXUHVFDQGGSDJHPXVWEHXVHG
PSDFWVWUDQVYHUVHWRWKHMRLQWVUHVXOWLQFEHQGLQJRIWKHHOHPHQWVDVKRUL]RQWDOJLUGHUV1RUPDOO\
WKHVHDUHQRWUHOHYDQWIRUFDOFXODWLRQ7KHFRQQHFWLRQIRUFHVWRWKHVKHDUZDOOVPXVWEHWUDQVIHUUHG
ZLWKUHVSHFWLYHIDVWHQHUV

%UDFLQJRIEXLOGLQJV'LDSKUDJPV

)LJXUH)DLOXUHPHFKDQLVPVRIGLDSKUDJPV

%UDFLQJRIEXLOGLQJV6KHDUZDOOV
6KHDUZDOOV
$UUDQJHPHQWRIVKHDUZDOOV
Q WKH EDVLF UHTXLUHPHQWV WR EUDFLQJ VKHDU ZDOOV ZHUH GHVFULEHG )LJXUH VKRZV VXLWDEOH
DUUDQJHPHQWVRIVKHDUZDOOV)DYRXUDEOHLVWKHSRVLWLRQRIWKHSODWHVFHQWUHRIJUDYLW\LQWKHFHQWUH
RIWKHIORRUSODQLISRVVLEOHVLQFHWKXVWZLVWLQJRIWKHEXLOGLQJDERXWLWVD[LVLVDYRLGHG)LJXUH
VKRZV XQVXLWDEOH DUUDQJHPHQWV GXH WR WKH HFFHQWULF SRVLWLRQ RI WKH FHQWUH RI JUDYLW\ DQG
)LJXUHVKRZVLQVWDEOHDUUDQJHPHQWV

)LJXUH6XLWDEOHDUUDQJHPHQWRIVKHDUZDOOV

)LJXUH8QVXLWDEOHDUUDQJHPHQWRIVKHDUZDOOV

)LJXUHQVWDEOHDUUDQJHPHQWRIVKHDUZDOOV

'LVWULEXWLRQRILPSDFWWRWKHSODWHV
)RUYHULILFDWLRQRIVKHDUZDOOVDQGGHVLJQRIVXLWDEOHIDVWHQHUVRILQGLYLGXDOSODWHVLQWKHIORRUSODQ
WKHKRUL]RQWDOIRUFH+DFWLQJDWWKHVWRUH\VWRSHGJHPXVWEHGLVWULEXWHGWRWKHLQGLYLGXDOSODWHV
IWKHIORRUVDUHVXIILFLHQWO\VWLIIWKHIRUFHFDQEHGLVWULEXWHGWRWKHLQGLYLGXDOVKHDUZDOOVDFFRUGLQJ
WRWKHLUUHVSHFWLYHVWLIIQHVVQFDVHRIVRIWGLDSKUDJPVWKHZDOOVWLIIQHVVHVORVHLQIOXHQFHVLQFHWKH
IRUFHVFDQQRWEHSDVVHGRQXSWRWKHVWLIIHUORDGEHDULQJZDOOV
7KHVWLIIQHVV%RIWKHVKHDUZDOOVFDQEHJHQHUDOO\GHWHUPLQHGDFFRUGLQJWRGHSHQGLQJRQWKH
MRLQLQJ WHFKQLTXH &RPSDUDWLYH FDOFXODWLRQV ZLWK WLH URGV DQG VKHDU EUDFNHWV UHVXOWHG LQ DERXW
% a IRUFRQWLQXRXVO\MRLQHGMRLQWVXSWR % a QDILUVWDSSUR[LPDWLRQWKHVWLIIQHVVRIWKHSODWHV
LVIUHTXHQWO\DVVXPHGSURSRUWLRQDOWRWKHLUUHVSHFWLYHOHQJWK:LWKWKLVDVVXPSWLRQIRUVKRUWSODWHV
WRRKLJKVWLIIQHVVHVDQGWKXVODUJHUIRUFHVUHVXOWDQGIRUORQJHUSODWHVVOLJKWO\ORZHUIRUFHV
QWKHSUHVHQWJXLGHOLQH % a LVUHFRPPHQGHGIRUFURVVODPLQDWHGWLPEHUZDOOV

)LJXUH$[LVGHVLJQDWLRQVDQGGLPHQVLRQVIRUDEXLOGLQJIORRUSODQ

'HWHUPLQDWLRQRIWKHSODWHIRUFHVPD\WDNHSODFHDFFRUGLQJWRWKHIROORZLQJVWHSV
'HWHUPLQDWLRQRIJHRPHWU\DQGVWLIIQHVVRIWKHLQGLYLGXDOSODWH
3ODWHVWLIIQHVV
:LWKDVVXPSWLRQ % a
%[L

|[( [ $ |

% \L

| \( \ $ |

3ODWHFHQWUH
[L
[ $ [(

\L
\ $ \(

'HWHUPLQDWLRQRIWKHSRVLWLRQRIWKHFHQWUHRIJUDYLW\
[6
% [
%
\6
% \
%
\L
\L
[L
[L
'HWHUPLQDWLRQRIWKHPRPHQWIURPHFFHQWULFLW\RIWKHLPSDFWIRUFHVWRWKHFHQWUHRIJUDYLW\
0
+[ ( \ + \ 6 ) + \ ([+ [ 6 )

&DOFXODWLRQRIWKHGLVWULEXWLRQRILPSDFWVRQWKHLQGLYLGXDOVKHDUZDOOV
3
)[L
+[
)\L
+\
[L
V \
%[L
%[L
% \L
% \L
\L
0
0
V[
V \ %[L
3
V[ % \L
3
)LJXUHVKRZVDVDQH[DPSOHWKHUHDFWLRQIRUFHVRIWKHSODWHDVDFRQVHTXHQFHRIDIRUFH+\LQ
WKH FHQWUH RI JUDYLW\ RQ WKH RQH KDQG DQG ZLWK HFFHQWULFLW\ WR WKH FHQWUH RI JUDYLW\ RQ WKH RWKHU
KDQG


)LJXUH5HDFWLRQIRUFHVLQWKHSODWHV
'HIRUPDWLRQDQGVWLIIQHVV

7KH GHIRUPDWLRQ RI VKHDU ZDOOV PXVW DW OHDVW EH OLPLWHG ZLWK RI WKH VWRUH\ KHLJKW FRPSOL
DQFH ZLWK RI WKH KHLJKW LV UHFRPPHQGHG Q WKH IROORZLQJ WKH LQGLYLGXDO SRUWLRQV RI RYHUDOO
GHIRUPDWLRQDUHHVWLPDWHG'XHWRWKHUHODWLYHO\KLJKSODWHVWLIIQHVVRIFURVVODPLQDWHGWLPEHUWKH
GHIRUPDWLRQSRUWLRQVRIWKHIDVWHQHUVDUHQRUPDOO\GRPLQDQW

)LJXUH6KHDUZDOOZLWKFRQQHFWLRQWRFHLOLQJDQGIORRU

1250%6HFWLRQ

%HQGLQJGHIRUPDWLRQRIWKHVKHDUZDOO>PP@
Z0
)N K

(

6KHDUGHIRUPDWLRQRIWKHVKHDUZDOO>PP@
Z9
)N K

*$V
([SDQVLRQRIWKHWLHURGV>PP@
Z=
)N K

E F =
'LVSODFHPHQWLQRQHRIWKHWZRMRLQWVEHWZHHQZDOODQGFHLOLQJ>PP@
Z)
)N

F)
K +HLJKWRIWKHVKHDUZDOO>P@
E /HQJWKRIWKHVKHDUZDOO>P@
( )OH[XUDOVWLIIQHVV>N1Pt@
(
(PHDQ
GQHW E

*$V 6KHDUVWLIIQHVV>N1@
* *PHDQ
$ G JURVV E
)N +RUL]RQWDOIRUFHDWWKHSODWHKHDGLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQ>N1@
F) 6WLIIQHVVRIWKHZDOOFHLOLQJMRLQW>N1PP@
F = 6WLIIQHVVRIWKHIDVWHQHUVIRUWHQVLOHDQFKRULQJ>N1PP@

8SRQDVVXPSWLRQRIDERXWHTXDOMRLQWVWLIIQHVVDWWKHWRSDQG DWWKHERWWRPWKHRYHUDOOGHIRUPD
WLRQUHVXOWVDVIROORZV
Z KRU
Z 0 Z9 Z = Z )

9HULILFDWLRQV

)LJXUH'LPHQVLRQVRIDVKHDUZDOO

6KHDUVWUHVVRIWKHSODWH
%DVLFDOO\WKHYHULILFDWLRQVVWDWHGLQPXVWEHXQGHUWDNHQHYHQWKRXJKWKH\EHFRPHGHFLVLYHIRU
YHU\VOHQGHUZDOOVRQO\
7HQVLRQDQFKRULQJ
WPXVWEHYHULILHGWKDWWKHUHVLVWDQFHRIWKHVHOHFWHGIDVWHQHUVLVKLJKHUWKDQWKHLPSDFW

=G )5 G

7KHWHQVLOHIRUFHUHVXOWVDVIROORZV
=G
)G K
*=N 7HQVLOHIRUFH
H

H QQHUOHYHU
*=N 3RUWLRQIURPSHUPDQHQWLPSDFWVZLWKDSRVVLEO\UHOLHYLQJHIIHFW

&RQVWDQW GLVWULEXWLRQ RI WKH VWUHVVHV LQ WKH FRQWDFW DUHD LV DVVXPHG $QDORJRXV WR VWHHO FRQVWUXF
WLRQDPRGHOZLWKWKHZLGWKRIWKHSUHVVXUH]RQHRI [

E LVXVHG$FFRUGLQJO\WKHLQQHUOHYHUUH

VXOWVDVIROORZV
H

E H]

8SRQGHWHUPLQDWLRQRIWKHWHQVLOHIRUFHVRIWKHDQFKRULQJWKHWHQVLOHIRUFHVUHVXOWLQJIURPEHQGLQJ
RIWKHHQWLUHEXLOGLQJPD\QRUPDOO\UHPDLQXQFRQVLGHUHGRQWKHEXLOGLQJVVLGHIDFLQJWKHZLQG7KLV
PXVWRQO\EHFRQVLGHUHGIRUVOHQGHUWRZHUW\SHEXLOGLQJV
7KHWHQVLOHIRUFHWREHDQFKRUHGLVUHGXFHGZLWKSHUPDQHQWVXSHULPSRVHGORDGV$VDUHOLHYLQJSRU
WLRQWKH\PD\RQO\EHDSSOLHGZLWK
QPXOWLVWRUH\EXLOGLQJVEHWWHUORDGGLVWULEXWLRQWRWKHZDOOVFDQEHDFKLHYHGE\VWUHVVLQJWKHFHLO
LQJVVWRUH\ZLVHLQGLIIHUHQWGLUHFWLRQV
8SRQGLVWULEXWLRQRIWKHWLHURGVWKHDOWHUQDWLQJVLJQVRIZLQGLPSDFWDQGFRQVHTXHQWO\WKHDU
UDQJHPHQWDWERWKHQGVRIWKHUHVSHFWLYHVKHDUZDOOPXVWEHREVHUYHG

6KHDUDQFKRULQJ
9G )5 G
9G
)G *9N 6KHDUIRUFHLQWKHMRLQW

*9N 3RUWLRQRIIULFWLRQIURPSHUPDQHQWLPSDFWVZLWKDUHOLHYLQJHIIHFW
8SRQMRLQWIRUPDWLRQZLWKDILOPIULFWLRQPD\EHDSSOLHGKRZHYHU
QRWLIWKHUHDUHWZRILOPVRQWRSRIRQHDQRWKHU

6OLGLQJIULFWLRQWLPEHUWLPEHU

6OLGLQJIULFWLRQWLPEHUFRQFUHWH

6HUYLFHDELOLW\
)RUWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQWKHKRUL]RQWDOGLVSODFHPHQWDWWKHZDOOKHDGKDVWREHOLPLWHG
DVIROORZVUHFRPPHQGHGYDOXHDFFRUGLQJWR6HFWLRQ
Z KRU
K

9'

$SSOLFDWLRQH[DPSOHV%DVLFSULQFLSOHV
$SSOLFDWLRQH[DPSOHV
7KH DXWKRUV DUH SODQQLQJ WR GLVFXVV DSSOLFDWLRQV RQ WKH ZHEVLWH ZZZ[ODPLQIR DQG WR OLVW IXUWKHU
H[DPSOHVDQGVXJJHVWLRQVRQWKHVXEMHFWRIFURVVODPLQDWHGWLPEHUWKHUH
%DVLFSULQFLSOHV
;/$0FURVVVHFWLRQZLWKILYHOD\HUV
*LYHQ
;/$0HOHPHQW;/$0/V
%XLOGXSOZOZO

6WUHQJWKFODVVRIDOOERDUGOD\HUV&
&KDUDFWHULVWLFPDWHULDOYDOXHV
0RGXOXVRIHODVWLFLW\ (PHDQ 1PP
5ROOLQJVKHDUPRGXOXV *5PHDQ
1PP
5HIHUHQFHOHQJWKIRUFDOFXODWLRQDFFRUGLQJWRWKH*DPPDPHWKRG UHI
6RXJKW
P
&URVVVHFWLRQDOYDOXHVIRUORDGEHDULQJFDSDFLW\DQGVHUYLFHDELOLW\
&URVVVHFWLRQDOYDOXHVIRUORDGEHDULQJFDSDFLW\

3RVLWLRQRIWKHFHQWUHRIJUDYLW\
6\PPHWULFDOFURVVVHFWLRQ
]6
K

]6

PP

$UHD
$QHW
(L
(
L
E GL
)RUPXOD
7KH(PRGXOLDUHHTXDOIRUDOOOD\HUV
$QHW
(L
(Q

( ) FP

0RPHQWRILQHUWLDQHWYDOXHULJLG
QHW
(L
(
L
E GL

(L
(
L
)RUPXOD
E GL DL

'LVWDQFHVRID[HV
G
G
D G D

D

PP
D PP
D
D PP
QHW

QHW
FP
6HFWLRQPRGXOXV
QHW

PD[{]R ]X }
:QHW
]R
]X

:QHW
)RUPXOD
PP
]V
FP

5
(L
65QHW
65QHW
FP
L
E GL DL
)RUPXOD
&URVVVHFWLRQDOYDOXHVIRUVHUYLFHDELOLW\

0RPHQWRILQHUWLDHIIHFWLYHYDOXHVKHDUIOH[LEOH
HI
E GL

(L
(
L
E GL DL

)RUPXOD
'LVWDQFHVRID[HV
D
G
G
D G D

D

PP

D
D PP
*DPPDIDFWRUV

( E G
G

E *5
UHI

)RUPXOD

y


HI

HI
FP
;/DP FURVVVHFWLRQ ZLWK ILYH OD\HUV WUDQVYHUVH WR WKHPDLQ GL
UHFWLRQRIORDGEHDULQJFDSDFLW\
*LYHQ;/$0HOHPHQW;/DP/V
%XLOGXSOZOZO

1PP
6RXJKW
P
&URVVVHFWLRQDOYDOXHVIRUORDGEHDULQJFDSDFLW\DQGVHUYLFHDELOLW\XSRQEHQGLQJ
LQWKHDQFLOODU\GLUHFWLRQRIORDGEHDULQJFDSDFLW\WUDQVYHUVHWRWKHPDLQGL
UHFWLRQRIORDGEHDULQJFDSDFLW\

]6
K

]6

PP

$UHD
$ QHW
(L
(
L
7KH(PRGXOLDUHHTXDOIRUDOOOD\HUV
$ QHW
)RUPXOD
E GL
LQWUDQVYHUVH
(L
(F
GLUHFWLRQ

( ) FP


Q
(L
QHW
L
E GL

(L
(
L
E GL DL

)RUPXOD
LQWUDQVYHUVH
GLUHFWLRQ
'LVWDQFHVRID[HV
D PP D
PP
QHW

QHW
FP

6HFWLRQPRGXOXV
QHW
: QHW
PD[{]R ]X }
]R
]V
]X
)RUPXOD
PP

: QHW
LQWUDQVYHUVH
GLUHFWLRQ
FP

5
(L
6 5QHW
L
E GL DL
)RUPXOD

FP
6 5QHW
LQWUDQVYHUVH
GLUHFWLRQ
HI
E GL

(L
(
L
E GL DL

)RUPXOD
LQWUDQVYHUVH
GLUHFWLRQ
'LVWDQFHVRID[HV
D
G G

D

D
D PP
PP
*DPPDIDFWRUV

( E G
G

E
*5
UHI

y


HI

HI
FP
;/$0 FURVVVHFWLRQ ZLWK WLPEHUEDVHG PDWHULDO DV WKH ORDG

EHDULQJOD\HU
*LYHQ;/DPHOHPHQW;/DP/VZLWKDVWDWLFDOO\HIIHFWLYHJOXHGERWWRPOD\HURIODPL
QDWHGYHQHHUOXPEHU/9/PP

%XLOGXSOZOZO/9/O
0RGXOXVRIHODVWLFLW\(PHDQ 1PPt
5ROOLQJVKHDUPRGXOXV*5PHDQ 1PPt
&KDUDFWHULVWLFPDWHULDOYDOXHVRIWKHOD\HUVRIODPLQDWHGYHQHHUOXPEHU
0RGXOXVRIHODVWLFLW\(PHDQ 1PPt
6RXJKW
P

)RUPXOD
Q
]6
(L
L F
Q
$L RL
(L
$L
(
F
7DEXODUFDOFXODWLRQ
(L
GL
(L
(F
$L
E GL
>FP@
>@
>FP@
>FPt@
(L
RL
(F
$L R L
>FP@
>FPu@

D

E

6XP
]6
(F
E
L

FP
)RUPXOD
QHW
(L E GL

F
(
L
(L
(
L
E GL DL

7DEXODUFDOFXODWLRQ
(L
(F
L
$L
DL
RL ]V

>FPt@
>FP@
E GL

>FP@
(L
$L DL
(F

>FP@

D

E

6XP
QHW
LQWULQVLF

FP

6HFWLRQPRGXOL
)RUPXOD
QHW

]L
:QHWL
7RSHGJHILEUHRIWKH;/DPHOHPHQW
]FOWR
D
:QHWFOWR

G

FP
FPu

%RWWRPHGJHILEUHRIWKH;/DPHOHPHQW
]FOWX
DD
GD

:QHWFOWX

FP
FPu
%RWWRPHGJHILEUHRIWKH/9/OD\HU
]OYOX
DE
GE

:QHWOYOX

FP
FPu
6WUHVVGHWHUPLQDWLRQIRUWKH/9/OD\HUFRQVLGHULQJWKH(PRGXOXV
OYOX
(L
0

(F :QHWOYOX

5
(L
65QHW
$ |D| $ |D |
65QHW
L
$L |DL |
65QHW
)RUPXOD

FP


HI
L
HLJHQL
$ D
L

L
)RUPXOD
LQWUDQVYHUVH
GLUHFWLRQ

3DUW7KHDGMDFHQWOD\HUVZLWKWKHVDPHRULHQWDWLRQ
DDQGEDUHFRQVLGHUHGDVRQHOD\HU
6XEDUHD
$
(
(D
$D E $E
(F
(F
$

FP

'LVWDQFHRID[HVSDUW
D
D
(
(D
$D DD E $E DE
(F
(F

$

FP
QWULQVLFPRPHQWRILQHUWLDSDUW
HLJHQ
(D
(F

E GD
(
$D (DD D ) E

(F

E GE
$E (DE D )

HLJHQ
( )
( )

HLJHQ
[ ] FP
*DPPDIDFWRUV

( EG
G

E *5
UHI

y

)RUPXOD
FRQW

HI

( $ G
Q

E *5
UHI

y( )

L
HLJHQL
$ D
L

L

)RUPXOD

HI

HI

FP

&URVVVHFWLRQIROORZLQJFKDUULQJ
*LYHQ
;/$0HOHPHQW;/$0/V
%XLOGXSOZOZO

1PP
$VVXPHGILUHSHUIRUPDQFHFRQVLVWHQWFKDUULQJIRUDOOOD\HUV
&KDUULQJUDWH
PP PLQ
UHTXLUHGILUHUHVLVWDQFH5XQLODWHUDOIURPWKHERWWRP
6RXJKW
&URVVVHFWLRQDOYDOXHVIRUYHULILFDWLRQRIORDGEHDULQJFDSDFLW\LQWKHHYHQWRI
ILUH
5HVLGXDOFURVVVHFWLRQ
(IIHFWLYHFKDUULQJGHSWK
GHI
GFKDU NG
&KDUULQJUDWH
GFKDU
G
GFKDU
PP
3\URO\VLV]RQH
N G
GHI

PP
PP

&URVVVHFWLRQDOYDOXHVIRUORDGEHDULQJFDSDFLW\LQWKHHYHQWRIILUH

Q
]6
(L
L F
Q
(L
$L
(
F
$L RL
)RUPXOD
7DEXODUFDOFXODWLRQ
E
(L

(F
GL
>FP@
>@
>FP@
L
$L
E GL
>FPt@
RL
(L
$ R
(F L L
>FP@
>FPu@

6XP
]6
(L
(F

FP

QHW
(L E GL

F
(
L
(L
(
L
)RUPXOD
E GL DL
7DEXODUFDOFXODWLRQ
(L
L
(F
$L

>FPt@
LQWULQVLF
E GL

RL ]V
>FP@
>FP@
(L
(F
$L D L

>FP@

6XP
QHW
DL
FP


6HFWLRQPRGXOL
:QHWL
QHW

]L
7RSHGJHILEUHRIWKH;/DPHOHPHQW
]R
FP
]V
:QHWR

FPu
%RWWRPHGJHILEUHRIWKH;/DPHOHPHQW
]X
(G G ) ]
G IL ]V
:QHWX
HI
( )
FP

FPu

5
(L
65QHW
$ |D|
65QHW
FP
L
$L |DL |
65QHW
)RUPXOD
6WUHVVFXUYHV

7KHHIIHFWLYHPRPHQWRILQHUWLD HI LVRQO\UHTXLUHGIRUYHULILFDWLRQVLQWKHVHUYLFHDELOLW\
OLPLWVWDWHVDQGWKHUHIRUHLVQRWGHWHUPLQHGIRUWKHFKDUUHGFURVVVHFWLRQ

;/$0FURVVVHFWLRQZLWKVHYHQOD\HUV
*LYHQ
;/$0HOHPHQW;/$0/V
%XLOGXSOZOZOZO

1PP
P
6RXJKW

Q
]6
(L
L F
Q
E GL RL
(L
E GL
(
F
7DEXODUFDOFXODWLRQ
L
E
(L

(F
GL
>FP@
>@
>FP@
E GL
>FPt@
RL
(L
$L RL
(F
>FP@
>FPu@

6XP
]6
(L
$L
(F

PP

]6
K


]6
PP
Q
(L E GL

F
QHW
L
(L
(
L
E GL DL
7DEXODUFDOFXODWLRQ
(L
$L
(F
DL
>FP@

6HFWLRQPRGXOXV
QHW

PD[{]R ]X }
]X
:QHW
PP
]V

FP


>FP@

]R

FP
:QHW
>FP@
(L
$L DL
(F

6XP
QHW
E GL

RL ]V

>FPt@
LQWULQVLF
(L
$L |DL |
65QHW
65QHW
$ |D| $ |D |
65QHW
FP
L
7KHH[WHQGHG*DPPDPHWKRG
)RUFURVVVHFWLRQVZLWKIRXUDQGPRUHORQJLWXGLQDOOD\HUVWKHH[WHQGHG*DPPDPHWKRGDFFRUGLQJWR
6FKHOOLQJKDVWREHDSSOLHG7KHYDOXHVPXVWEHFDOFXODWHGYLDDOLQHDUHTXDWLRQV\VWHPDQGQRORQJHU
RQWKHEDVLVRIDFORVHGIRUPXODDVGHVFULEHGLQ$QQH[$
[9 ]
V
0DWUL[
&RHIILFLHQWPDWUL[
[9 ]

($
& +
D

& D

& D
($
& & +
D

& D

& D

($
&

&
+

D
& D
($
& +

& D
D
5LJKWKDQGVLGH
V

& D

& D & D

& D & D

& D
7DEXODUFDOFXODWLRQ
L
M
E
(L

(F
G LM
(L
$L
(F
* MN
DL
& MN

E * MN
E GL
>PP@
>@
>PP@
G MN
D MN
( $L

>PPt@ >PP@ >1PP@ >1PPt@ >PP@ >1PPt@

0DWUL[ZLWKQXPHULFDOYDOXHV
&RHIILFLHQWPDWUL[
5LJKWKDQGVLGH
[9 ]

V
[9 ] V

0RPHQWRILQHUWLD
Q
E GL

(L
HI
HI
( )
HI
FP
(
L
E GL DL
6WUHVVFXUYHV

[9 ]

6ROXWLRQRIWKHHTXDWLRQV\VWHP
$SSOLFDWLRQH[DPSOHV&HLOLQJV
&HLOLQJV
&HLOLQJDVGRXEOHVSDQJLUGHU
*LYHQ
$SDUWPHQWFHLOLQJ P
P
8WLOLVDWLRQFODVV
)LUHUHVLVWDQFHUHTXLUHPHQW5XQLODWHUDO
PSDFWV
/LYHORDG QN
N1P &DWHJRU\$
3HUPDQHQWVXSHULPSRVHGORDGV J N
N1P
:LGWKRIWKHFHLOLQJVSDQ E P
6RXJKW
'LPHQVLRQLQJIRUORDGEHDULQJFDSDFLW\DQGVHUYLFHDELOLW\
&DOFXODWLRQ
3UHGLPHQVLRQLQJ
G

G PP ZLWK

VHOHFWHGFURVVVHFWLRQ;/DP/VOOZOZOO
PSDFWVDQGFRHIILFLHQWV
JN
J N
QN
*
1$
N1 P

./('
NPRG
SHUPDQHQW

PHGLXP

'HDGZHLJKW
JN PHDQ $JURVV
NJ P FP FP N1 P
6XPRISHUPDQHQWLPSDFWV
JN
JN JN
N1 P

/RDGEHDULQJFDSDFLW\
6HFWLRQPRGXOXV :QHW
FP
(TXLYDOHQWDUHDIRUVKHDUYHULILFDWLRQ $5QHW
QHW E
65QHW
FP
6HUYLFHDELOLW\
)URPWKHGLIIHUHQWVSDQOHQJWKVUHVXOWGLIIHUHQWHIIHFWLYHPRPHQWVRILQHUWLD:LWKOHQJWK
UDWLRVRI PD[ PLQ EHLQJRQWKHVDIHVLGH HI PD\EHFKRVHQIRU UHI
P
UHI
&URVVVHFWLRQ
FP
HI
WDEOH
%\LWHUDWLRQIURPWKHWDEOHYDOXHV
UHI
P
HI
FP
UHI
P
HI
FP
(PHDQ 1 PPt

7KHVXEVWLWXWHFURVVVHFWLRQIRUFDOFXODWLRQLQDIUDPHZRUNSURJUDPPHUHVXOWVLQ
HI
EHIK FPZLWK EHI

QHW

QWHUQDOIRUFHV

0RPHQW
0D[LPXPPRPHQWDFURVVWKHFHQWUDOVXSSRUW%
0 JN
0
0
N1P
N1P
Q N
Q N
N1P

'HFLVLYHFRPELQDWLRQRIORDGLQJFRQGLWLRQVLQWKHUDUHGHVLJQVLWXDWLRQ
0G
* 0 JN 4 0QN 0QN
0G
( ) ( )
0G
N1P NPRG

/DWHUDOIRUFH
0D[LPXPODWHUDOIRUFHWRWKHULJKWRIWKHFHQWUDOVXSSRUW%
9JN
9
N1
N1
Q N
Q N

N1
9G
* 9JN 4 9QN 9QN
9G
( )
9G
N1 NPRG

6XSSRUWUHVSRQVHV
N1
% JN
N1
N1
Q N
Q N
%G
* % JN 4 %QN %QN
%G
( )
%G
N1 NPRG

'HIOHFWLRQV

+LJKHVWGHIOHFWLRQLQVSDQDWSRLQW[ PIURPVXSSRUW%
Z JN
Z
Z
Z JN Z JN
PP
PP QRWFRQVLGHUHGDVLWKDVDEHQHILFLDOHIIHFW
Q N
PP
Q N
4XDVLSHUPDQHQWGHVLJQVLWXDWLRQ
Z ILQTV
Z LQVWTV Z FUHHS
Z FUHHS
NGHI Z LQVWTV
Z LQVWTV
Z JN Z QN
Z LQVWTV
PP
Z FUHHS
PP
Z ILQTV
PP
&KDUDFWHULVWLFGHVLJQVLWXDWLRQ
Z ILQ
Z LQVW Z FUHHS
Z LQVW
Z JN Z
Z LQVW

Z ILQ
PP
Q N

PP


9HULILFDWLRQ
8OWLPDWHOLPLWVWDWHV

9HULILFDWLRQRIEHQGLQJVWUHVVHV
PG IPG
PG
0G
:QHW
IPG
NPRG

1 PP

IPN

1 PP
1PPt 1PPt 9IXOILOOHG

9HULILFDWLRQRIVKHDUVWUHVVHV
5G I95G
5G
I95G
9G 6QHW
QHW E
NPRG

I95N
9G
$5QHW

1 PP

1 PP

'HIOHFWLRQV
9HULILFDWLRQLQWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQDSSHDUDQFH
(QGGHIRUPDWLRQ
Z ILQTV
Z ILQTV
PP

PP
PP PP 9IXOILOOHG
9HULILFDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQDYRLGDQFHRIGDPDJH
QLWLDOGHIRUPDWLRQ
Z LQVW
Z LQVW

PP

PP
PP PP 9IXOILOOHG

(QGGHIRUPDWLRQ
Z ILQ
PP
Z ILQ

PP
PP PP 9IXOILOOHG
7KHHQGGHIRUPDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQPXVWEHDSSOLHGDVWKHPD[L
PXPYDOXHRIGHIOHFWLRQWREHH[SHFWHGIRUWKHGHVLJQRISRVVLEOHH[SDQVLRQMRLQWV
9LEUDWLRQV
6WLIIQHVVHV
QWKHFHLOLQJVGLUHFWLRQRIVSDQ
(( )
( HI

N1Pt P

7UDQVYHUVHWRWKHFHLOLQJVGLUHFWLRQRIVSDQ
FPRIFHPHQWVFUHHG( 1PPt
(( )E

N1Pt P
)UHTXHQF\FULWHULRQ
QIOXHQFHRIWUDQVYHUVHGLVWULEXWLRQ
NWUDQVYHUVH
(( )E

E E (( )
NWUDQVYHUVH

QIOXHQFHRIWKHVWDWLFV\VWHP
)URP7DEOHIRU PLQ PD[
UHVXOWV NH

I
(
NWUDQVYHUVH NH
P

JN JN
I

+]

1 P
NJ P
P V
I +] +] 9IXOILOOHGYLEUDWLRQFODVV


6WLIIQHVVFULWHULRQ

'HIRUPDWLRQDVDFRQVHTXHQFHRIDXQLWORDG )
N1 DWWKHPRVWXQIDYRXUDEOHSRLQWIRU
WKHRQHPHWUHVWULSZLWKRXWORDGGLVWULEXWLRQ
Z VWDW
)

(( ) E)
/RDGGLVWULEXWLRQLQWKHWUDQVYHUVHGLUHFWLRQFDQEHGHWHUPLQHGIURP
E)

(( )E
PLQ

E
(( )
$VVXPLQJWKHVWLIIQHVVUDWLRV
E)
(( )E
(( )

UHVXOWV

(( )E
PLQ
E PLQ{ } P

(( )
7KXVGHIRUPDWLRQZLWKORDGGLVWULEXWLRQLV
Z VWDW
)
(( ) E)

PP

7KHFHLOLQJFRUUHVSRQGVWRYLEUDWLRQFODVV
Z VWDW
PP PP 9IXOILOOHGYLEUDWLRQFODVV

9LEUDWLRQDFFHOHUDWLRQ
)RUFHLOLQJVDPLQLPXPIUHTXHQF\RI IPLQ
+] PXVWEHFRPSOLHGZLWKLQDQ\FDVH
)RUFHLOLQJVIRUZKLFKWKHIUHTXHQF\FULWHULRQFDQQRWEHIXOILOOHG IPLQ I I JU XSRQ

IXUWKHUFRPSOLDQFHZLWKWKHVWLIIQHVVFULWHULRQYLEUDWLRQYHULILFDWLRQLVSRVVLEOHYLDYLEUD
WLRQDFFHOHUDWLRQ
)RUFRPSOHWHQHVVVDNHYLEUDWLRQDFFHOHUDWLRQLVGHWHUPLQHGDOWKRXJKLWLVQRWUHTXLUHG
IRUWKHYHULILFDWLRQLQWKHSUHVHQWFDVH
)RUFURVVODPLQDWHGWLPEHUFHLOLQJVZLWKIORDWLQJVFUHHGDQGKHDY\IORRUVWUXFWXUHIURP
7DEOHWKHGHJUHHRIGDPSLQJUHVXOWVDVIROORZV
'


7KHPRGDOPDVVLV
0

NWUDQVYHUVH
E

NJ

)

' 0
DUPV
:HLJKWIRUFHRIDSHUVRQZDONLQJRQWKHFHLOLQJFRQVLGHUHG
)
1
&RHIILFLHQWIRUFRQVLGHUDWLRQRIWKHLQIOXHQFHRIWKHQDWXUDOIUHTXHQF\RQYLEUDWLRQDFFHO
HUDWLRQ
I

DUPV
D JU
H

P V
P V 9IXOILOOHGYLEUDWLRQFODVV

5HVLGXDOFURVVVHFWLRQ
&URVVVHFWLRQ
OOZOZO
WDEOH
:QHW IL
FP
$5 IL
FP
QWHUQDOIRUFHV
0RPHQW
0 ILG
0 JN 0QN 0QN
0 ILG
( )
0 ILG
N1P
/DWHUDOIRUFH
9 ILG
9JN 9QN 9QN
9 ILG
( )
9 ILG
N1
9HULILFDWLRQRIEHQGLQJVWUHVVHVLQWKHHYHQWRIILUH
P ILG IP ILG

P ILG
0 ILG
:QHW IL

1 PP

IP ILG
N IL NPRG IL
IPN
P IL

1 PP

9HULILFDWLRQRIVKHDUVWUHVVHVLQWKHHYHQWRIILUH
5 ILG I5 ILG
5 ILG
I5 ILG
9 ILG
$5QHW IL

1 PP

N IL NPRG IL
I95N
P IL

1 PP


'HVLJQ
7KHIRUPDWLRQRIEXWWMRLQWVLVGLVFXVVHGLQSDJH
0RGHODVVXPSWLRQV

/RDGGLVWULEXWLRQ
)RUWKHORDGSURSDJDWLRQLQZDOOVSDUDOOHOWRWKHPDLQGLUHFWLRQRIVSDQDFFRUGLQJWR)LJXUHRU
LQFROXPQVDFFRUGLQJWR)LJXUHDORDGSURSDJDWLRQDQJOHEHWZHHQrDQGrWRWKHYHUWLFDO
LVDVVXPHG6LQFHGLPHQVLRQLQJQRUPDOO\WDNHVSODFHDWRQHPHWUHVWULSVWKHLPSDFWDFWLQJRQWKH
ZLGWKEPPXVWEHUHIHUUHGWRWKHRQHPHWUHVWULSIRUGLPHQVLRQLQJ
T T:
P

EP

)LJXUH/RDGGLVWULEXWLRQRIZDOOORDGVLQGLUHFWLRQRIVSDQ

4 467
P

EP

)LJXUH/RDGGLVWULEXWLRQRISRLQWORDGV

$SSOLFDWLRQH[DPSOHV5RRIV
5RRIV
)ODWURRIDVDVLQJOHVSDQJLUGHU
*LYHQ
6LQJOHVSDQJLUGHU P
8WLOLVDWLRQFODVV
PSDFWV
3HUPDQHQWVXSHULPSRVHGORDGV JN N1P
6QRZ VN N1P
:LQG Z N N1P
6RXJKW
9LEUDWLRQFODVVQRUHTXLUHPHQW
&DOFXODWLRQ
3UHGLPHQVLRQLQJ
G

G

PP
VHOHFWHGFURVVVHFWLRQ;/DP/VOZOZO

PSDFWV
JN
J N
*
N1 P

./('
NPRG
SHUPDQHQW

VN
6

EULHI

ZN
:

EULHI

'HDGZHLJKW
JN PHDQ $JURVV

JN
JN JN
NJ P
N1 P
N1 P


/RDGEHDULQJFDSDFLW\
:QHW
FP
65QHW
FP
QHW
FP
6HUYLFHDELOLW\
UHI P
HI
FP

QWHUQDOIRUFHV

0RPHQWV
0LN
T

0 JN

0VN

N1P
0ZN

N1P
N1P
QWKHGHFLVLYHFRPELQDWLRQRIORDGLQJFRQGLWLRQV
0G * 0 JN 4 0VN 4 0ZN
0G

0G
N1P NPRG

/DWHUDOIRUFH
9L
T

9JN

9VN

N1
9ZN

N1
N1
QWKHGHFLVLYHFRPELQDWLRQRIORDGLQJFRQGLWLRQV
9G
* 9JN 4 9VN 4 9ZN
9G

9G
N1P NPRG

'HIOHFWLRQV
Z LN
T

(HI
(HI

N1P
Z JN

PP

Z VN

PP

ZZN

PP

4XDVLSHUPDQHQWGHVLJQVLWXDWLRQ
Z ILQTV
Z LQVWTV Z FUHHS
Z FUHHS
NGHI Z LQVWTV
Z LQVWTV
Z JN Z VN Z ZN
Z LQVWTV
PP
Z FUHHS

Z ILQTV
PP
PP
&KDUDFWHULVWLFGHVLJQVLWXDWLRQ
Z ILQ
Z LQVW Z FUHHS
Z LQVW
Z JN Z VN Z ZN
Z LQVW
PP
Z ILQ
PP

9HULILFDWLRQ
8OWLPDWHOLPLWVWDWHV
9HULILFDWLRQRIEHQGLQJVWUHVVHV
PG IPG
PG
0G
:QHW
IPG
NPRG

1 PPt

IPN
P

1 PPt

9HULILFDWLRQRIVKHDUVWUHVVHV
5G I95G

5G
9G 6QHW
QHW E
I95G
NPRG

I95N

1 PPt
1 PPt

'HIOHFWLRQV

9HULILFDWLRQLQWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQDSSHDUDQFH
(QGGHIRUPDWLRQ
Z ILQTV
Z ILQTV
PP

PP
PP PP 9IXOILOOHG

9HULILFDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQDYRLGDQFHRIGDPDJH
QLWLDOGHIRUPDWLRQ
Z LQVW
Z LQVW

PP

PP
PP PP 9IXOILOOHG

(QGGHIRUPDWLRQ
Z ILQ
Z ILQ

PP

PP
PP PP 9IXOILOOHG

7KHHQGGHIRUPDWLRQLQWKHFKDUDFWHULVWLFGHVLJQVLWXDWLRQPXVWEHDSSOLHGDVWKHPD[L
PXPYDOXHRIGHIOHFWLRQWREHH[SHFWHGIRUWKHGHVLJQRISRVVLEOHH[SDQVLRQMRLQWV

$SSOLFDWLRQH[DPSOHV%DUUHOVKDSHGURRI
%DUUHOVKDSHGURRI

*LYHQ
%DUUHOVKDSHGURRI
P K P DUFRIFLUFOHZLWKWLHEDU
8WLOLVDWLRQFODVV

PSDFWV
3HUPDQHQWVXSHULPSRVHGORDGV J N
6QRZ VN
N1P
:LQG Z $
N1P Z %
N1P
N1P Z&
N1P
/LVWDFFRUGLQJWR(1
5RRIHOHPHQWV;/DP&VOZOZODUFKHG
7LHEDUVPPSHUPHWUH6
6RXJKW

&DOFXODWLRQ
$UFKHGHOHPHQWV
)URPWKHFLUFXODUDUFKHGJHRPHWU\UHVXOWVDUDGLXVRIFXUYDWXUHDVVRFLDWHGZLWKWKHGH
WDLOVRI

K

K
P
7KHPD[LPXPERDUGWKLFNQHVVUHVSHFWLYHO\UHVXOWVDVIROORZV
GPD[YRUK G JUHQ]
G JUHQ]
U

GPD[YRUK

PP

PP
PP PP 9IXOILOOHG

$SSOLFDWLRQH[DPSOHV%DUUHOVKDSHGURRI
6WDWLFFDOFXODWLRQRIWKHLQWHUQDOIRUFHVE\PHDQVRI('3
6WLIIQHVV$UFK QHW
7LHEDU $QHW
FP $QHW
FP (
FP ( 1 PP
1 PP
>1@

PLQ 1G
N1
N1 PD[ 1G

>0@

PLQ 0G
N1P PD[ 0G
N1P
9HULILFDWLRQ
$UFK8OWLPDWHOLPLWVWDWHV
%XFNOLQJ3UHVVXUHDQGEHQGLQJFRQVHUYDWLYHO\ZLWKWKHODUJHVWLQWHUQDOIRUFHV PLQ 1G
DQG PD[ 0G )RUH[DFWFDOFXODWLRQWKHUHVSHFWLYHO\DVVRFLDWHGLQWHUQDOIRUFHVDUHXVHG
7KHEXFNOLQJOHQJWKRIWZRKLQJHGDUFKHVFDQEHHVWLPDWHGZLWK N
V
E
2SHQLQJDQJOHRIWKHDUFK DUFWDQ
r

K

K
K
$UFKOHQJWKRIKDOIRIWKHDUFK V
%XFNOLQJOHQJWK N
V
U

P
P
7LHEDU/RDGEHDULQJFDSDFLW\
:LWKWKHQHWFURVVVHFWLRQWKHXOWLPDWHOLPLWVWDWHPXVWEHFDOFXODWHGZLWK
PD[ 1G
N1
6HUYLFHDELOLW\
$QDO\VLVRIWKHYHUWLFDOFURZQGHIOHFWLRQDQGKRUL]RQWDOGLVSODFHPHQWRIWKHVOLGLQJEHDU
LQJ

$SSOLFDWLRQH[DPSOHV:DOOV
:DOOV
8SULJKWFURVVODPLQDWHGWLPEHUHOHPHQWVOLQHDUO\VXSSRUWHGDWWKHLUERWWRPVLGHDUHFDOOHGZDOOV
9HUWLFDOO\ORDGHGZDOO

*LYHQ
([WHULRUZDOO N
P E
P EHI
P
8WLOLVDWLRQFODVV
PSDFWV
/RDGVIURPULVLQJVWRUH\V

N1 P GHVLJQYDOXH
7RWDOVXSHULPSRVHGORDGIRUWKHZDOO TG
:LQGSUHVVXUHWUDQVYHUVHWRWKHZDOOSODQH Z N
(OHPHQW;/DP&VOZO
6RXJKW
'LPHQVLRQLQJIRUORDGEHDULQJFDSDFLW\
N1P


&DOFXODWLRQ

&URVVVHFWLRQDOYDOXHVIRUWKHRQHPHWUHVWULS
LHI
FP
FP :QHW
$QHW
FP
QWKHHYHQWRIILUH5XQLODWHUDO
LHI IL
FP
$QHW IL
FP :QHW IL
FP
3RVLWLRQRIWKHFHQWUHRIJUDYLW\ ] IL
(FFHQWULFLW\GXHWRFKDUULQJ H IL
PP
]NDOW ] IL
PP PP
&RQVLGHUDWLRQRIZDOORSHQLQJV
QFDVHRIYHUWLFDOORDGGLVWULEXWLRQZDOORSHQLQJVUHVXOWLQODUJHUIRUFHVLQWKHUHGXFHG
ZDOOFURVVVHFWLRQQJHQHUDODSSUR[LPDWHO\XQLIRUPO\GLVWULEXWHGIRUFHVFDQEHDV
VXPHG

5HODWLQJWRWKHRQHPHWUHVWULSWKLVUHVXOWVLQ
IE
1G
0G

E
EHII

IE TG
N1
4 Z G

N1P

9HULILFDWLRQ
8OWLPDWHOLPLWVWDWHV

%XFNOLQJDQDO\VLV
F G
NF \ IF G
PG
IPG

7DEOH
%XFNOLQJFRHIILFLHQWIRUVOHQGHUQHVV
NF \

IF G
1 PP IPG
7DEOH
1 PP
1G
0G
$QHW
:QHW

NF \ IF G
IPG

9IXOILOOHG
6KHDUVWUHVVHV
'XHWRVPDOOODWHUDOIRUFHVYHULILFDWLRQRIWKHVKHDUVWUHVVHVLVRPLWWHGDWWKLVSRLQW
$FFRUGLQJWR(1LQWHUQDOGHVLJQIRUFHVLQWKHHYHQWRIILUHFDQEHGHWHUPLQHGLQ
DVLPSOLILHGPDQQHUIURPWKHLQWHUQDOGHVLJQIRUFHVRIFROGGLPHQVLRQLQJ
1 ILG IL 1G
N1
7KHGHVLJQPRPHQWUHVXOWVIURPWKHHFFHQWULFLW\LQWKHHYHQWRIILUHDVIROORZV
0 ILG
1 ILG H IL

N1P

%XFNOLQJDQDO\VLV
1 ILG
0 ILG
$QHW IL
:QHW IL
NF \ IF ILG
IP ILG

7DEOH
%XFNOLQJFRHIILFLHQWIRUVOHQGHUQHVV
UHFRPPHQGHGOLPLWVOHQGHUQHVVLQWKHHYHQWRIILUH IL JUHQ]
NF \
FRPSOLHGZLWK

IF ILG
1 PP IPG
7DEOH
1 PP

9IXOILOOHG
6KHDUVWUHVVHV
'XHWRVPDOOODWHUDOIRUFHVYHULILFDWLRQRIWKHVKHDUVWUHVVHVLVRPLWWHGDWWKLVSRLQW

'HVLJQ
0RGHODVVXPSWLRQV/LQWHOV
([HFXWLRQYDULDQWV

)LJXUH([HFXWLRQYDULDQWVIRUOLQWHOVLQ;/DPZDOOV

)LJXUH VKRZV H[HFXWLRQ YDULDQWV IRU OLQWHOV LQ FURVVODPLQDWHG WLPEHU ZDOOV Q PRVW FDVHV WKH
UHVWUDLQWRIFXWRXWOLQWHOVDFFRUGLQJWR)LJXUHDLVDERXWWRRIWKHIXOOUHVWUDLQWDQGFDQEH
REWDLQHGIURPWKHFRQVLGHUDWLRQRIDIUDPHZLWKYHUWLFDOZDOOVWULSVIRUWKHVWUXWVDQGWKHOLQWHODVD
ZDOHU7KHIXUWKHUYDULDQWVDUHVLQJOHVSDQV\VWHPVZLWKXSULJKWJLUGHUVRIFURVVODPLQDWHGWLPEHURU
JOXHGODPLQDWHGWLPEHUQ)LJXUHFWKHUHDFWLRQIRUFHLVWUDQVIHUUHGIURPWKHOLQWHOLQWRWKHZDOOYLD
SUHVVLQJ WUDQVYHUVH WR WKH ILEUH QVHUWLQJ D VWHHO SODWH DFFRUGLQJ WR )LJXUH G WKLV FDQ EH DYRLGHG
DQG WKH IRUFH LV WUDQVIHUUHG YLD HQG SUHVVLQJ )RU OLQWHO JLUGHUV RI JOXHGODPLQDWHG WLPEHU RU VROLG
ZRRGDFFRUGLQJWR)LJXUHHE\LQVHUWLQJDVWHHOSODWHDFFRUGLQJWR)LJXUHIWKHSUHVVLQJDUHDRIWKH
XSULJKWOD\HUVRIWKHZDOOFDQEHLQFUHDVHGWRWKHHQWLUHJLUGHUZLGWK

$SSOLFDWLRQH[DPSOHV6KHDUZDOOV
6KHDUZDOOV
:DOOW\SH JLUGHUV DUH XVHG DV ORDGEHDULQJ SDUDSHW JLUGHUV DWWLF JLUGHUV URRI WUXVVHV RU VWRUH\
KHLJKWZDOOV7KH\FDQEHXVHGWRWUDQVIHUVXVSHQGHGFHLOLQJORDGVRUWKHORDGVRISURMHFWLQJSDUWVRI
EXLOGLQJV
:LWKJLUGHUVRIFURVVODPLQDWHGWLPEHUFRPSDUHGWRJOXHGODPLQDWHGWLPEHUDKLJKHUVKHDUFDSDF
LW\FDQEHDFKLHYHGGXHWRWKHLQWHUORFNHGOD\HUV7KHFURVVVHFWLRQXVDEOHIRUEHQGLQJUHVXOWVIURP
WKHVXPRIKRUL]RQWDOOD\HUVLHUXQQLQJLQWKHGLUHFWLRQRIORDGEHDULQJFDSDFLW\
)RU ZDOOW\SH JLUGHUV IURP D VSDQWRKHLJKW UDWLR RI DERXW K RQ WKH QRQOLQHDU VWUHVV FXUYH
PXVWEHFRQVLGHUHG7KH VWUHVVGLVWULEXWLRQIRUZDOOW\SHJLUGHUVLVVKRZQDVDQH[DPSOHLQ)LJXUH
:KLOHWKHVWUHVVFXUYHRIWKHEHDPLVOLQHDULWLVKLJKO\FXUYHGIRUWKHZDOOW\SHJLUGHU:LWKD
GHFUHDVLQJ K UDWLRWKHWHQVLRQ]RQHEHFRPHVORZHUDQGWKHSUHVVXUH]RQHKLJKHU7KHVWUHVVDW
WKH EHQGLQJ WHQVLRQ HGJH RI WKH ZDOOW\SH JLUGHU GRHV QRW GHFUHDVH ZLWK WKH PRPHQW FXUYH EXW
PDLQWDLQVLWVVL]HLQWKHVSDQRYHUORQJHUGLVWDQFHV
(GJH VWUHVVHV GHWHUPLQHG DFFRUGLQJ WR WKH SODWH WKHRU\ GHSHQG RQ WKH ORDGDSSOLFDWLRQ DW WKH WRS
DQG DW WKH ERWWRP DQG WKH K UDWLR RI WKH JLUGHU Q WKH YHU\ PRVW FDVHV WKH\ UHPDLQ EHORZ WKH
WKUHHIROGYDOXHRIVWUHVVGLVWULEXWLRQRIDEHDPDVVXPHGDVOLQHDU:LWKDUDWLRRI K WKH\DUH
DERXWWKHIROG7KHGLDJUDPRIVKHDUVWUHVVHVOLNHZLVHVKRZVDQRWKHUFXUYHZLWKDORZHUPD[L
PXPFRPSDUHGWRWKHEHDP7KHPD[LPXPVKHDUVWUHVVDW K UHPDLQVEHORZWKHIROGRI
WKHVKHDUVWUHVVDFFRUGLQJWRWKHEHDPWKHRU\
:LWKFRQWLQXRXVV\VWHPVWKHLQIOXHQFHRIVKHDUGHIRUPDWLRQVKDVDQHIIHFWRQLQWHUQDOIRUFHV7KH
PRPHQWVDWVXSSRUWEHFRPHORZHUWKHPRPHQWVRIVSDQKLJKHUWLVUHFRPPHQGHGWRGHWHUPLQH
WKHPRPHQWVDQGWKHORQJLWXGLQDOEHQGLQJVWUHVVHVUHVXOWLQJWKHUHIURPDVZHOODVWKHGHIRUPDWLRQV
DWDVLQJOHVSDQJLUGHUDFURVVWKHORQJHVWVSDQ5HDFWLRQIRUFHVDQGODWHUDOIRUFHVFDQEHGHWHUPLQHG
FRQVLGHULQJWKHFRQWLQXRXVEHDPHIIHFW

)LJXUH6WUHVVGLVWULEXWLRQIRUZDOOW\SHJLUGHUV

6KHDUZDOOV

'RXEOHVSDQJLUGHU P P
*LYHQ
8WLOLVDWLRQFODVV
PSDFWV
3HUPDQHQWVXSHULPSRVHGORDGVWRS J N
N1P ERWWRP J N
N1P
N1P VSDQZLVHXQIDYRXUDEOHOLYHORDGFDWHJRU\$
/LYHORDGVERWWRP QN
6QRZWRS VN
N1P EHORZPDERYHVHDOHYHO6
:LQGWRS Z N
N1P
&URVVVHFWLRQ;/DP&VOZOZO
6RXJKW
&DOFXODWLRQ
PSDFWV
N1 P
* 4
JN
*

1$

PHGLXP

VN
6

EULHI

ZN
:

EULHI

QN DQG
QN
./('
NPRG
SHUPDQHQW

'HVLJQYDOXHRIWKHLPSDFWLQWKHGHFLVLYHORDGFRPELQDWLRQ
TG
* J N 4 QN
N1P
(NPRG
)
6XSSRUW
%G TG

N1
(NPRG
)
QWHUQDOIRUFHV
0RPHQW
'HWHUPLQHGIRUDVLQJOHVSDQJLUGHUZLWKWKHOHQJWKRI
0G
TG

0G
:] QHW

P
N1P

1 PP
/DWHUDOIRUFH

9G
N1
TG
96G

9G
$] QHW

1 PP

'HIRUPDWLRQ
&KDUDFWHULVWLFYDOXHRILPSDFW
TN
J N QN VN Z N
N1 P
TN
T
N
( * $V
Z LQVW
E] QHW K
] QHW

FP
( N1 FP
(
N1P
$V
EJURVV K FP
* N1 FP
* $V
N1
Z LQVW

PP
6XSSRUWSUHVVXUH
%G
$FQHW
F G

1 PP

:DOOSLOODUDWULVNRIEXFNOLQJDERYHWKHVXSSRUW

/RDGSURSDJDWLRQLQWRWKHZDOOSLOODUZLWKr
EVW
QG
%G
EVW
K

WDQ(r )
FP

N1 P
5HODWHGWRDRQHPHWUHVWULS

QG
QG

EVW

N1 P
%XFNOLQJ
K P
LHI
FP
N
LHI
NF \

7DEOH
F G NF \ IF G
F G
1G
$QHW
$QHW
FP
IF G
NPRG

IF N
0
1 PP

1 PP
1 PP

1 PP 1 PP 9IXOILOOHG

)LJXUH/RDGSURSDJDWLRQIURPWKHVXSSRUWD[LV

)LJXUH:DOOSLOODUZLWKFRQYHUVLRQRIWKHORDGWRRQHFROXPQZLWKDZLGWKRIP

$QQH[
$QQH[&DOFXODWLRQPHWKRG
$ 7KHH[WHQGHG*DPPDPHWKRG
7KH *DPPD PHWKRG VWDWHG LQ WKH VWDQGDUGV LV UHVWULFWHG WR WZR DQG WKUHH ORQJLWXGLQDO OD\HUV LH
WKUHHDQGILYHOD\HUFURVVODPLQDWHGWLPEHUFURVVVHFWLRQV)RUVHYHQDQGPRUHORQJLWXGLQDOOD\HUV
WKH PHWKRG PXVW EH H[WHQGHG 7KH *DPPD YDOXHV PD\ WKHQ EH GHWHUPLQHG YLD D OLQHDU HTXDWLRQ
V\VWHP
$ 3UHUHTXLVLWHVDQGDVVXPSWLRQV
7KH IOH[LEO\ FRQQHFWHG SDUWLDO FURVVVHFWLRQV WKLFNQHVV RI ORQJLWXGLQDO OD\HUV DQG ( PRGXOL PD\
HDFK KDYH GLIIHUHQW FURVVVHFWLRQV DQG VWLIIQHVVHV EXW DUH FRQVWDQW DORQJ WKH HQWLUH JLUGHU OHQJWK
7KHVWLIIQHVVRIWKHIOH[LEOHFRXSOLQJVLHWKHWUDQVYHUVHOD\HUVZLWKWKHLUUHVSHFWLYHWKLFNQHVVHVDQG
UROOLQJ VKHDU PRGXOL OLNHZLVH UHPDLQV FRQVWDQW ZKLFK FDQ EH DVVXPHG ZLWK FRQWLQXRXV JOXLQJ RI
WKHWUDQVYHUVHOD\HUV
:LWKVXIILFLHQWDFFXUDF\WKHORQJLWXGLQDOVWLIIQHVVHVRIWKHWUDQVYHUVHOD\HUVDUHHTXDWHGWR]HURLQD
VLPSOLILHGPDQQHU
7KH *DPPD PHWKRG LV EDVHG RQ WKH DSSURDFK RI D VLQXVRLGDOO\ GLVWULEXWHG ORDG DQG D UHVSHFWLYH
GHIRUPDWLRQ VKDSH DQG RQ WKH DVVXPSWLRQ WKDW DOO SDUWV RI WKH FURVVVHFWLRQ UHPDLQ SODQDU LQ WKH
VHFWLRQVFRQVLGHUHG
)URP WKH HTXLOLEULXP DQDO\VLV DW WKH FURVVVHFWLRQ ZLWK DSSOLFDWLRQ RI WKH FXUYDWXUHPRPHQW
UHODWLRQDQGFRQVLGHUDWLRQRIWKHMRLQWGLVSODFHPHQWVDFRXSOHGGLIIHUHQWLDOHTXDWLRQV\VWHPFDQEH
VHWXSXVLQJZKLFKWKHH[SDQVLRQVDQGFXUYDWXUHVRIWKHLQGLYLGXDOSDUWLDOFURVVVHFWLRQVFDQEHGH
WHUPLQHG$SSO\LQJWKHPHQWLRQHGVLQXVRLGDOGLVWULEXWLRQWKLVGLIIHUHQWLDOHTXDWLRQV\VWHPLVVLPSOL
ILHG LQWR D OLQHDU HTXDWLRQ V\VWHP ZKLFK FDQ EH UHVROYHG E\ WKH *DPPD YDOXHV IRU WKH LQGLYLGXDO
ORQJLWXGLQDOOD\HUV
$ 'HWHUPLQDWLRQRIWKHRYHUDOOFHQWUHRIJUDYLW\
Q
]V
(L
L F
Q
(L
E GL
(
F
E GL RL
RL 'LVWDQFH RI WKH LQGLYLGXDO FHQWUHV RI JUDYLW\ RI HDFK ORQJLWXGLQDO OD\HU IURP WKH
XSSHUHGJH
]V 'LVWDQFHRIWKHRYHUDOOFHQWUHRIJUDYLW\IURPWKHXSSHUHGJH
DL
RL ]V 'LVWDQFH RI WKH LQGLYLGXDO FHQWUH RI JUDYLW\ RI WKH ORQJLWXGLQDO OD\HU L IURP WKH
RYHUDOOFHQWUHRIJUDYLW\
$ 6HWWLQJXSWKHHTXDWLRQV\VWHP
)RUPRUHWKDQWKUHHORQJLWXGLQDOOD\HUVWKHVWLIIQHVVRIWKHFURVVVHFWLRQLVQRORQJHUGHWHUPLQHGE\
WKHIOH[LELOLW\WRWKHUHVSHFWLYHO\DGMDFHQWORQJLWXGLQDOOD\HUDORQH7KHIOH[LEOHFRXSOLQJWRWKHORQJL
WXGLQDOOD\HUVSRVLWLRQHGIXUWKHUDZD\PXVWEHFRQVLGHUHGDVGHVFULEHGLQ$

$QQH[

7KHHTXDWLRQV\VWHPLVDVIROORZV
[9 ]
V
Y
Y
Y
Y
Y
Y
Y
Y
Y PP

Y PP P

V

V

V

VP

/HIWKDQGVLGH
E *5 MN
& MN
G MN

(L E GL

UHI
'L

Y LL &L L DL

Y LL

(&L L &LL 'L ) DL
Y LL &LL DL

5LJKWKDQGVLGH
&LL (DL DL ) &L L (DL DL )
VL

7KHHTXDWLRQV\VWHPIRUIRXUORQJLWXGLQDOOD\HUVLVDVIROORZV
Y Y
Y
Y
Y

Y
Y
Y
V
V
=
Y V

Y V
)ROORZLQJLQVHUWLRQLWORRNVDVIROORZV
(& + ' ) D
& D

& D
(& + & + ' ) D

& D

(&

& D
+ & + ' ) D
& D
& (D D )

& (D D ) + & (D D )

=

& D & (D D ) + & (D D )

(& + ' ) D
& (D D )

$ 6ROXWLRQ
[9 ] V

7KHVROXWLRQRIWKHOLQHDUHTXDWLRQV\VWHPDUHWKH*DPPDYDOXHVIRUWKHLQGLYLGXDOORQJLWXGLQDOOD\
HUV

$QQH[
$ 0RPHQWRILQHUWLD
7KHPRPHQWRILQHUWLDFDQEHGHWHUPLQHGDVZLWKWKHVLPSOH*DPPDPHWKRG
HI
(L E GL

F
(
L
L
(L
E GL DL
(F

$ 6WUHVVYHULILFDWLRQV
QWKHSUHVHQWJXLGHOLQHWKHVWUHVVYHULILFDWLRQVDUHXQGHUWDNHQDVVXPLQJULJLGO\FRQQHFWHGSDUWVRI
WKH FURVVVHFWLRQ 7KLV FRUUHVSRQGV WR PRVW DSSURYDOV DQG VRPH SDUWV RI WKH WHFKQLFDO OLWHUDWXUH
DQGLVH[SODLQHGLQ&KDSWHU

$QQH[
$ 7KHPXOWLOD\HUVKHDUIOH[LEO\FRQQHFWHGEHDP

7LPRVKHQNREHDPDFFRUGLQJWR%RJHQVSHUJHU0RRVEUXJJHU DQG$OWHQEDFKHWDO
$ 'HVLJQDWLRQRIOD\HUVDQGGLVWDQFHV

)LJXUH 'HVLJQDWLRQV IRU LQGLYLGXDO OD\HUV DW WKH H[DPSOH RI D VHYHQOD\HU FURVVODPLQDWHG WLPEHU
HOHPHQW
$ 2YHUDOOFURVVVHFWLRQ
3RVLWLRQRIWKHFHQWUHRIJUDYLW\IROORZLQJULJLGFRQQHFWLRQ
Q 1XPEHURIOD\HUV
]L
L
N
GL
3RVLWLRQ RI WKH LQGLYLGXDO FHQWUHV RI JUDYLW\ RI HDFK ORQJLWXGLQDO OD\HU DV PHDV

XUHGIURPWKHXSSHUHGJH
Q
]V
( $ ]
L
Q
( $
L
]L
2YHUDOOFHQWUHRIJUDYLW\DVPHDVXUHGIURPWKHFURVVVHFWLRQVXSSHUHGJH
]L ]V 'LVWDQFHRIWKHLQGLYLGXDOFHQWUHVRIJUDYLW\IURPWKHFHQWUHRIJUDYLW\
]LR
]L
GL
'LVWDQFHRIWKHWRSLQGLYLGXDOHGJHILEUHIURPWKHFHQWUHRIJUDYLW\

]LX
]L
GL
'LVWDQFHRIWKHERWWRPLQGLYLGXDOHGJHILEUHIURPWKHFHQWUHRIJUDYLW\

P QGH[RIWKHOD\HUFRQWDLQLQJWKHFHQWUHRIJUDYLW\
$ 0RPHQWRILQHUWLD

QHW
(L E G

(F
(L
(
L
E GL ]L

6FKLFNKRIHUHWDO

$QQH[
$ 6KHDUDUHD
* $
* $V
* $
6KHDUFRUUHFWLRQIDFWRUWUDQVYHUVHVKHDUIDFWRU
0RGLILHGIRUFRQVLGHUDWLRQRIWKHGLIIHUHQWPRGXOLRIHODVWLFLW\(DQGVKHDUPRGXOL*
QWKHOLWHUDWXUHVKHDUFRUUHFWLRQLVFRQVLGHUHGRQWKHRQHKDQG
YLDWKHVKHDUFRUUHFWLRQFRHIILFLHQW ] NDSSDZLWKLQGH[] ]
DQGRQWKHRWKHUKDQG
YLDWKHVKHDUFRUUHFWLRQIDFWRU NDSSDZLWKRXWLQGH[

ZLWK
]

6KHDUFRUUHFWLRQFRHIILFLHQW
* $ [(] 6]]
(( ) *] E
\QHW
G]
* $ [(] $ ] G] ]
(( ) *] E
\QHW

G]

6KHDUFRUUHFWLRQIDFWRU

]
IRUUHFWDQJOHV

6WDQGDUGYDOXHVIRUFURVVODPLQDWHGWLPEHUPDGH RIVWDQGDUGODPLQDWHVZLWKGLIIHUHQW WKLFNQHVVHV

PP
7\SHV
7\SHV
7\SHV
7\SHV
7KHVKHDUVWLIIQHVVUHVXOWVDVIROORZV
* $V
* $QHW

$QQH[
7DEXODUFDOFXODWLRQRIWKHVKHDUFRUUHFWLRQIDFWRU
[(] 6]] G]
7KH GRXEOH LQWHJUDO
*] E
[(] $ ] G] ]
*] E
G] FDQ EH GHWHUPLQHG OD\HU E\ OD\HU DQG DGGHG
XS Q WKDW ILUVW WKH XSSHU SDUW RI WKH FURVVVHFWLRQ IURP WKH FURVVVHFWLRQV XSSHU HGJH ] ]R WR
WKHFURVVVHFWLRQVFHQWUHRIJUDYLW\LVFRQVLGHUHGDQGWKHQWKHORZHUSDUWRIWKHFURVVVHFWLRQIURP
WKHFURVVVHFWLRQVORZHUHGJH ] ]QX WRWKHFURVVVHFWLRQVFHQWUHRIJUDYLW\ ]

)RURQHOD\HUFRQVLGHUHGWKHDQDO\VLVRIWKHLQWHJUDOUHVXOWVLQWKHIROORZLQJSRO\QRPLDO
]LX
[( 6 ] G]

] LR
(LE
]LX ]LR ]LX ]LR ]LX ]LR

E (L

[( 6 ]L
]LX ]LR ]LX ]LR

[( 6 ]L ]LX ]LR

QWKDWWKHWHUP [( 6 ]L UHVXOWVE\VXPPLQJXSDOOOD\HUVIURPWKHXSSHURUORZHUUHVSHFWLYHO\FURVV
VHFWLRQHGJHWRWKHFXUUHQWO\FRQVLGHUHGOD\HUL
L
[( 6 ]
[( 6 ]L
N
]NX
]NR

QWKDWWKHSRUWLRQRIDQLQGLYLGXDOOD\HUNLV
]
[( 6 ] ]NNRX
(N E
]N X

]N R

7KHUHZLWKWKHVKHDUFRUUHFWLRQFRHIILFLHQWFDQEHFDOFXODWHGLQDWDEXODUPDQQHUE\IRUPLQJVXEWR
WDOV

$SSUR[LPDWHFDOFXODWLRQRIWKHVKHDUFRUUHFWLRQIDFWRU
)RU V\PPHWULFDO EXLOGXSV FRQWLQXRXVO\ HTXDO ODPLQDWH WKLFNQHVVHV DQG WKH VKHDU PRGXOL UDWLR RI
*
*

-EVWOLQGLFDWHGWKHIROORZLQJYDOXHV

OD\HU

OD\HUV
OD\HUV
OD\HUV
OD\HUV
RIHTXDOOD\HUWKLFNQHVV

$QQH[
&DOFXODWLRQRIGHIRUPDWLRQ
'HIRUPDWLRQLVFDOFXODWHGIURPWKHIROORZLQJWHUPV
Z=
9 9
G[
G[ +
$
QHW *

V
0 0
Z0

Z9
$W WKH H[DPSOH RI D VLQJOHVSDQ JLUGHU ZLWK D XQLIRUPO\ GLVWULEXWHG ORDG WKH IROORZLQJ JHQHUDOO\
NQRZQHTXDWLRQLVREWDLQHGIRUFHQWUHGHIOHFWLRQ
Z=
T"
T "

+
( QHW * $V

Z0

Z9
)RUDJLUGHUZLWKDSRLQWORDGLQWKHFHQWUHUHVXOWVWKHIROORZLQJJHQHUDOO\NQRZQHTXDWLRQ
Z=
) "
) "

+
( QHW * $V

Z0

Z9
$ 6WUHVVYHULILFDWLRQV
7KHVWUHVVYHULILFDWLRQVDUHXQGHUWDNHQZLWKWKHDVVXPSWLRQRIULJLGO\FRQQHFWHGSDUWVRIWKHFURVV
VHFWLRQDVH[SODLQHGLQ&KDSWHU

$QQH[
$ /LVWRIUHIHUHQFHV
$XWKRU<HDU
4XRWH
$OWHQEDFKHWDO
$OWHQEDFK+ROP-RKDQQHV$OWHQEDFKXQG5LNDUGV5RODQGV(LQIKUXQJLQGLH0HFKDQLNGHU

/DPLQDWXQG6DQGZLFKWUDJZHUNH6WXWWJDUW'HXWVFKHU9HUODJIU*UXQGVWRIILQGXVWULH
$XJXVWLQ
$XJXVWLQ0DQIUHG3HUVRQHQLQGX]LHUWH6FKZLQJXQJHQYRQ'HFNHQNRQVWUXNWLRQHQDXV+RO]

0DQXVNULSWGHV9HUIDVVHUVHUVWHOOWIUGHQ)DFKQRUPHQDXVVFKXVV)1$GHVDVLQVWLWXWV*UD]
%'=
+RO]EDX'HXWVFKODQG%XQG'HXWVFKHU=LPPHUPHLVWHU+UVJ+RO]EDXWHQLQ'HXWVFKHQ(UG

EHEHQJHELHWHQ5HJHOXQJHQQDFK'16HSWHPEHU
%ODXQG8LEHO
%OD+DQV-RDFKLP7KRPDV8LEHO%HPHVVXQJVYRUVFKOJHIU9HUELQGXQJVPLWWHOLQ%UHWWVSHU
UKRO]LQ%DXHQPLW+RO]1U6
'RZQORDGXQWHUZZZU]XQLNDUOVUXKHGHaJF+%38%/&SGI
%ODXQG8LEHO
%OD+DQV-RDFKLPXQG7KRPDV8LEHO7UDJIKLJNHLWYRQVWLIWIUPLJHQ9HUELQGXQJVPLWWHOQLQ

%UHWWVSHUUKRO].DUOVUXKHU%HULFKWH]XPQJHQLHXUKRO]EDX>%DQG@/HKUVWXKOIUQJHQLHXUKRO]EDX
XQG%DXNRQVWUXNWLRQHQ+UVJ.DUOVUXKH8QLYHUVLWW.DUOVUXKH7+
%OD(KOEHFN.UHX]LQJHUXQG %OD+DQV-RDFKLP-UJHQ(KOEHFNXQG+HLQULFK.UHX]LQJHU*QWKHU6WHFN(UOXWHUXQJHQ]X

6WHFN
'1(QWZXUI%HUHFKQXQJXQG%HPHVVXQJYRQ+RO]EDXZHUNHQ.DUOVUXKH%UXGHUYHUODJ
%RJHQVSHUJHUHWDO
%RJHQVSHUJHU7KRPDV0DQIUHG$XJXVWLQXQG*HUKDUG6FKLFNKRIHU3URSHUWLHVRI;/DP

3DQHOV([SRVHGWR&RPSUHVVLRQ3HUSHQGLFXODUWRWKHLU3ODQH&%:0HHWLQJ)RUW\)RXU$OJKHUR
WDOLHQ
%UXQQHUHWDO
%UXQQHU5RODQG3LUPLQ-XQJ5HQ6WHLJHU7KRPDV:HQ]XQG1LNODXV:LU](UGEH

EHQJHUHFKWHPHKUJHVFKRVVLJH+RO]EDXWHQ=ULFK/LJQXP9HUODJ
&(1
5HSRUWIURPWKHZRUNLQJJURXSRQ5HLQIRUFHPHQWRIWLPEHUVWUXFWXUHV'HVLJQRIUHLQIRUFHPHQWWR
FDUU\WHQVLOHVWUHVVHVSHUSHQGLFXODUWRWKHJUDLQ'RFXPHQW&(17&6&1
'1
'1(QWZXUI%HUHFKQXQJXQG%HPHVVXQJYRQ+RO]EDXZHUNHQ$OOJHPHLQH%HPHVVXQJVUH
JHOQXQG%HPHVVXQJVUHJHOQIUGHQ+RFKEDX>HLQVFKOLHOLFK%HULFKWLJXQJ@
(EQHU
(EQHU+DQQHV+UVJ/HLWGHWDLOVIUGHQ+RO]ZRKQEDX*UD]QVWLWXWIU+RFKEDX

'RZQORDGXQWHUZZZSURKRO]
VWPNDWLPDJHVVWRULHV+RO]IDFKEHUDWXQJOHLWGHWDLONDWDORJIRUPDWSGISGI
(1
(1$(XURFRGH*UXQGODJHQGHU7UDJZHUNVSODQXQJ$XVJDEH
(1
SU(17LPEHUVWUXFWXUHV&URVVODPLQDWHGWLPEHU5HTXLUHPHQWV(QWZXUIVIDVVXQJ

(1
(XURFRGH%HPHVVXQJXQG.RQVWUXNWLRQYRQ+RO]EDXWHQ7HLO$OOJHPHLQHV$OOJHPHLQH5H
JHOQXQG5HJHOQIUGHQ+RFKEDXNRQVROLGLHUWH)DVVXQJ$XVJDEH
(1
(1%HPHVVXQJXQG.RQVWUXNWLRQYRQ+RO]EDXWHQ7HLO$OOJHPHLQH5HJHOQ7UDJ
ZHUNVEHPHVVXQJIUGHQ%UDQGIDOONRQVROLGLHUWH)DVVXQJ$XVJDEH
(1
(XURFRGH$XVOHJXQJYRQ%DXZHUNHQJHJHQ(UGEHEHQ7HLO*UXQGODJHQ(UGEHEHQHLQZLUNXQ
JHQXQG5HJHOQIU+RFKEDXWHQ$XVJDEH
*LDUGLQLHWDO
*LDUGLQL'RPHQLFR0DULD-RV-LPQH]XQG*RWWIULHG*UQWKDO+UVJ7KH(VF6HVDPH8QLILHG

6HLVPLF+D]DUG0RGHOIRUWKH(XURSHDQ0HGLWHUUDQHDQ5HJLRQ
*UHHQ
*UHHQ0LFKDHO7DOO:RRG7KHFDVHIRU7DOO:RRG%XLOGLQJV+RZ0DVV7LPEHU2IIHUVD6DIH

(FRQRPLFDODQG(QYLURQPHQWDOO\)ULHQGO\$OWHUQDWLYHIRU7DOO%XLOGLQJ6WUXFWXUHV&DQDGLDQ:RRG&RXQ
FLO2WWDZD
85/ZZZLMDFVLFHVJWHDUWKTXDNHV
'RZQORDGKWWSZHFEFVPDOOER[FPVFRPGDWDEDVHUWHILOHV7DOO:RRGSGI
+DPPXQG5LFKWHU
+DPP3DWULFLDXQG$QWMH5LFKWHU%HPHVVXQJVXQG.RQVWUXNWLRQVUHJHOQ]XP6FKZLQJXQJV

QDFKZHLVYRQ+RO]GHFNHQLQ/DQGHVEHLUDW+RO]%DGHQ:UWWHPEHUJH9+UVJ7DJXQJVEDQGGHU
)DFKWDJXQJHQ+RO]EDX/HLQIHOGHQ(FKWHUGLQJHQ1RYHPEHU6
+)$
VWHUUHLFKLVFKH*HVHOOVFKDIWIU+RO]IRUVFKXQJGDWDKRO]FRP.DWDORJEDXSK\VLNDOLVFKXQGNROR
JLVFKJHSUIWHU+RO]EDXWHLOH2QOLQH5HVVRXUFH
$EUXIEDUXQWHUZZZGDWDKRO]DWGHLQGH[KWPO
+LYRVV
(XURSHDQ&RPPLVVLRQ+XPDQLQGXFHGYLEUDWLRQRIVWHHOVWUXFWXUHV+LYRVV6FKZLQJXQJVEH

PHVVXQJYRQ'HFNHQ/HLWIDGHQ
'RZQORDGXQWHUZZZVWEUZWKDDFKHQGHSURMHNWH+9266GRZQORDGSKS
-EVWOXQG6FKLFNKRIHU -EVWO5REHUWXQG*HUKDUG6FKLFNKRIHU&RPSDUDWLYHH[DPLQDWLRQRIFUHHSRI*/7DQG;/DPVODEVLQ

%HQGLQJLQ:RUNLQJ&RPPLVVLRQ:7LPEHU6WUXFWXUHV6
.UHX]LQJHUXQG0RKU

.UHX]LQJHU+HLQULFKXQG%HUQKDUG0RKU*HEUDXFKVWDXJOLFKNHLWYRQ:RKQXQJVGHFNHQDXV

+RO]$EVFKOXEHULFKW6WXWWJDUW)UDXQKRIHU5%9HUODJ
$QQH[
/HRQKDUGW
/HRQKDUGW)ULW]XQG(GXDUG0QQLJ9RUOHVXQJHQEHU0DVVLYEDX(UVWHU7HLO*UXQGODJHQ]XU

%HPHVVXQJLP6WDKOEHWRQEDX=ZHLWH$XIODJH+HLGHOEHUJ6SULQJHU
/HRQKDUGW
/HRQKDUGW)ULW]XQG(GXDUG0QQLJ9RUOHVXQJHQEHU0DVVLYEDX'ULWWHU7HLO*UXQGODJHQ]XP

%HZHKUHQLP6WDKOEHWRQEDX'ULWWH$XIODJH+HLGHOEHUJ6SULQJHU
/LJQXP
/LJQXP+RO]ZLUWVFKDIW6FKZHL]+UVJ(UGEHEHQJHUHFKWHPHKUJHVFKRVVLJH+RO]EDXWHQ7HFK

QLVFKH'RNXPHQWDWLRQGHU/LJQXP=ULFK
0HVWHNHWDO
0HVWHN3HWHU+HLQULFK.UHX]LQJHUXQG6WHIDQ:LQWHU'HVLJQ&RQFHSWIRU;/DP5HLQIRUFHG

ZLWK6HOIWDSSLQJ6FUHZV&%:0HHWLQJ)RUW\)RXU$OJKHURWDOLHQ
0OOHU
0OOHU)ULW]3HWHU%DXG\QDPLN%HWRQNDOHQGHU7HLO%HUOLQ(UQVWXQG6RKQ
1250%
1250%(XURFRGH*UXQGODJHQGHU7UDJZHUNVSODQXQJ7HLO+RFKEDX1DWLRQDOH
)HVWOHJXQJHQ]X1250(1$QKDQJ$
5DEROGXQG+DPP
5DEROG$QGUHDVXQG3DWULFLD+DPP6FKDOOXQGVFKZLQJXQJVRSWLPLHUWH+RO]GHFNHQLQ%DXHQPLW
+RO]1U6
5HSRUW(85(1
(XURSHDQ&RPPLVVLRQ5HSRUW(85(1*HQHUDOLVDWLRQRIFULWHULDIRUIORRUYLEUDWLRQVIRU

LQGXVWULDORIILFHUHVLGHQWLDODQGSXEOLFEXLOGLQJDQGJ\PQDVWLFKDOOV
5LQJKRIHUXQG6FKLFN
KRIHU
5LQJKRIHU$QGUHDVXQG*HUKDUG6FKLFNKRIHU(UGEHEHQQRUPXQJLQ(XURSDXQGGHUHQQDWLRQ

DOH$XVOHJXQJHQLQ7DJXQJVEDQG]XU*UD]HU+RO]EDX)DFKWDJXQJ*UD]
6DQGKDDV
6DQGKDDV&DUPHQ3URMHNW62)((UGEHEHQYHUKDOWHQYRQ+XVHUQDXV;/$0LQ7DJXQJVEDQG

]XU*UD]HU+RO]EDXIDFKWDJXQJ*UD]

6FKLFNKRIHUHWDO
6FKLFNKRIHU*HUKDUG7KRPDV%RJHQVSHUJHUXQG7KRPDV0RRVEUXJJHU+UVJ%63KDQGEXFK

+RO]0DVVLYEDXZHLVHLQ%UHWWVSHUUKRO]1DFKZHLVHDXI%DVLVGHVQHXHQHXURSLVFKHQ1RUPHQNRQ]HSWV
$XIODJH*UD]9HUODJGHU7HFKQLVFKHQ8QLYHUVLWW*UD]
6FKPLGHWDO
6FKPLG-RDFKLPXQG-UJHQ.QLJ&URVVODPLQDWHG7LPEHULQ)LUH635HSRUW6WRFN

KROP
6FKQHLGHU
6FKQHLGHU.ODXV-UJHQ+UVJ%DXWDEHOOHQIUQJHQLHXUHPLW%HUHFKQXQJVKLQZHLVHQXQG

%HLVSLHOHQ$XIODJH6WXWWJDUW:HUQHU9HUODJ
6LOO\
6LOO\*UHJRU1XPHULVFKH6WXGLHQ]XU'ULOOXQG6FKXEVWHLILJNHLWYRQ%UHWWVSHUUKRO];/DP'LS

ORPDUEHLWDPQVWLWXWIU+RO]EDXXQG+RO]WHFKQRORJLH7HFKQLVFKH8QLYHUVLWW*UD]
6WDKOEDX]HQ
WUXP6FKZHL]
6WDKOEDX]HQWUXP6FKZHL]+UVJ.RQVWUXNWLRQVWDEHOOHQ6WHHOZRUN&=ULFK9HUODJ6WDKO

EDX=HQWUXP6FKZHL]
6WHLQPHW]
6WHLQPHW]'LHWHU'LH$XVVWHLIXQJYRQ+RO]KXVHUQDP%HLVSLHOGHV+RO]UDKPHQEDXHVLQ%DXHQPLW
+RO]1U6
7HLELQJHUHWDO
7HLELQJHU0DUWLQXQG)ORULDQ(KUOLFK%HPHVVXQJVUHJHOQIU%UHWWVSHUUKRO]EDXWHLOHLP%UDQGIDOO
)DFKEHLWUDJDOV0DQXVNULSWGHU9HUIDVVHU:LHQ+RO]IRUVFKXQJ$XVWULD

7HLELQJHU0DUWLQXQGUPJDUG0DW]LQJHU*UXQGODJHQ]XU%HZHUWXQJGHV)HXHUZLGHUVWDQGHV

YRQ+RO]NRQVWUXNWLRQHQ:LHQ+RO]IRUVFKXQJ$XVWULD

7HLELQJHU0DUWLQXQGUPJDUG0DW]LQJHU%DXHQPLW%UHWWVSHUUKRO]LQ*.XQG*.

3ODQXQJVEURVFKUH:LHQ+RO]IRUVFKXQJ$XVWULD
9'
9'%ODWW/DGXQJVVLFKHUXQJDXI6WUDHQIDKU]HXJHQ=XUUNUIWH
:DOWHUXQG)ULW]HQ
:DOWHU%XUNKDUGXQG.ODXV)ULW]HQ(UGEHEHQEHDQVSUXFKXQJEHL+RO]WUDJZHUNHQ
LQ%DXHQPLW+RO]1U61U6
:DOWKHUXQG
:LHVHQNPSIHU
:DOWKHU%XUNKDUGXQG7RELDV:LHVHQNPSHU1DFKZHLVGHU(UGEHEHQVLFKHUKHLWYRQ+RO]JH

EXGHQ$DFKHQ6WXGLHQJHPHLQVFKDIW+RO]OHLPEDXH9
'RZQORDGXQWHU
ZZZEUHWWVFKLFKWKRO]GHSXEOLVKELQDU\GDWDDNWXHOOHVQDFKZHLVBHUGEHEHQVLFKHUKHLWBKRO]JHEDHXGH
SGI
:LQWHUHWDO
:LQWHU6WHIDQ+HLQULFK.UHX]LQJHUXQG3HWHU0HVWHN+RO]EDXGHU=XNXQIW7HLOSURMHNW

)OFKHQDXV%UHWWVWDSHOQ%UHWWVSHUUKRO]XQG9HUEXQGNRQVWUXNWLRQHQ5HLKH+RO]EDXIRUVFKXQJ
>%DQG@6WXWWJDUW)UDXQKRIHU5%9HUODJ

Cross-sectional values for cross-laminated timber with fictitious build-ups Ceilings and roofs
Designation
Build-up
I0,net
W0,net
SR,net
AR,
I0,ef / ref
2,00 m
[cm4]
[cm3]
[cm3]
[cm2]
3,00 m
)/(
4,00 m 5,00 m
[cm4]
6,00 m
7,00 m
[]
XLAM
130 C5s
30l20w30l
20w30l
15.675
86 %
2.412
1.500
1.567
11.990
65 %
13.778
75 %
14.546
79 %
14.932
82 %
15.151
83 %
15.287
83 %
0,193
XLAM
150 L5s
30l30w30l
30w30l
22.275
79 %
2.970
1.800
1.856
15.186
54 %
18.422
65 %
19.924
71 %
20.709
74 %
21.163
75 %
21.447
76 %
0,184
XLAM
160 L5s
40l20w40l
20w40l
30.400
89 %
3.800
2.400
1.900
21.680
64 %
25.741
75 %
27.580
81 %
28.529
84 %
29.074
85 %
29.414
86 %
0,208
XLAM
220 L7s
40l20w40l
20w40l20w40l
74.196
84 %
6.739
4.800
2.319
43.594
49 %
56.360
64 %
62.921
71 %
66.530
75 %
68.676
77 %
70.042
79 %
0,217
XLAM
220 L7s2
30l30l30w40l
30w30l30l
80.933
91 %
7.358
4.800
2.529
42.978
48 %
57.680
65 %
65.856
74 %
70.550
80 %
73.412
83 %
75.260
85 %
0,188
Cross-sectional values for cross-laminated timber with fictitious build-ups Walls

Designation
XLAM
90 C3s
Build-up
30l30w30l
A0,net
SR,net
I0,ef [cm4]/i0,ef [cm]/ []
I0,net
Inet
Ibrut
W0,net
AR,
[cm2]
[cm4]
[cm3]
[cm3]
[cm2]
2,50 m 2,95 m 3,00 m 4,00 m 5,00 m 6,00 m []
600
5.850
1.300
900
975
5.120
2,92
86
1.600
1.300
11.083 11.737 11.796 12.613 13.035 13.277 0,155

3,72
3,83
3,84
3,97
4,04
4,07
67
77
78
101
124
147
1.560
1.050
1.114
6.532
3,30
76
15.675 2.412
1.500
1.567
13.088 13.722 13.778 14.546 14.932 15.151

3,81
3,90
3,91
4,02
4,07
4,10
66
76
77
99
123
146
0,193
1.800
1.856
17.130
4,36
57
0,184
96 %
XLAM
120 C3s
40l40w40l
800
13.867 2.311
96 %
XLAM
100 C3s
30l40w30l
600
7.800
94 %
XLAM
130 C5s
30l20w30l
20w30l
900
86 %
XLAM
150 C5s
30l30w30l
30w30l
900
22.275 2.970
79 %
Fictitious element build-ups

used in the guideline with
cross-sectional values for
dimensioning of elements
subjected to bending according
to Chapters 5 and 6 of the
present guideline.
)/(
ref
The element build-ups above are

fictitious and were defined independently of respective manufacturers.
The tables represent a possible listing
of the cross-sectional values for
dimensioning according to the
present guideline. For manufacturerrelated build-ups and corresponding
cross-sectional-values, please
contact one of the manufacturers.
A0,net
I0,net
W0,net
SR,net
AR,
I0,ef
i0,ef
ref
)/(
5.305
2,97
99
6.843
3,38
87
5.321
2,98
101
6.871
3,38
89
5.539
3,04
132
7.247
3,48
115
5.647
3,07
163
7.436
3,52
142
5.707
3,08
195
7.543
3,55
169
18.314 18.422 19.924 20.709 21.163

4,51
4,52
4,71
4,80
4,85
65
66
85
104
124
0,155
0,152
Net area in the direction of the top layers in cm2

Net moment of inertia in the direction of the top layers in cm4
Net section modulus in the direction of the top layers in cm3
Net static moment in the direction of the top layers in cm3
Equivalent area for determination of the decisive rolling
shear stress in cm2
Effective moment of inertia in the direction of the top layers in cm4
Effective radius of inertia in the direction of the top layers in cm
Reference length or buckling length in m
Slenderness (no unit)
Shear correction factor for calculation as a transversally
shear-flexible element (no unit)

Cross Laminated Timber CLT Structural Design Basic Design and Engineering Principles According To Eurocode

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Cross Laminated Timber CLT Structural Design Basic Design and Engineering Principles According To Eurocode

Diunggah oleh

Hak Cipta:

Format Tersedia

Information

Analysis and structural design of timber structures

isbn 978-3-902926-03-6 | Euro 35

Merk Timber GmbH

Hasslacher Norica Timber

Print Eberl Print, Immenstadt (de)

1st edition english 2014, 600 copies

Printed on pefc-certified paper. This product

The development of timber construction over the

6HOIWDSSLQJZRRGVFUHZV  

)RUFHSURJUHVVLRQ  

'LDSKUDJPV  

&HLOLQJV  

:DOOV  

7KHH[WHQGHG*DPPDPHWKRG  

7KHPXOWLOD\HUVKHDUIOH[LEO\FRQQHFWHGEHDP  

'  /HKUVGDPSLQJIDFWRU PRGDOGDPSLQJ ([WHQVLRQDOVWLIIQHVVRIDSODWH

ZLWKWKHIOH[XUDOVWUHQJWK IP MGFN RIWKHILQJHUMRLQWFRQQHFWLRQLQWKHERDUGVQPDQXIDFWXUHU

DQGLWLVLQGXFHGE\H[FHHGLQJ WKHUROOLQJVKHDUVWUHQJWK I95N W RQO\ DPRXQWV WRDERXWKDOI WRRQH

 'HVLJQYDOXHRILPSDFW ORDGEHDULQJFDSDFLW\

 'HVLJQYDOXHRIUHVLVWDQFH ORDGEHDULQJFDSDFLW\

IRUNPRG DQGP 

 &KDUDFWHULVWLF EXLOGLQJ PDWHULDO YDOXHV IRU XSULJKW SODWHV DQG

IRUNPRG DQGP 

WKHV\VWHPFRHIILFLHQW NV\V GXHWRVWDWLFHIIHFWVFRPSDUHGWRWKHERDUGVWUHQJWK :LWKDSSOLFDWLRQRI

  SHUPDQHQW 

   

  

   

   

   

7KLVGHWHUPLQDWLRQLVEDVHGRQDQDO\VHVRI78*UD] *UD]8QLYHUVLW\RI7HFKQRORJ\ 6HH-EVWOXQG6FKLFN

E GL  $UHD QHW

 6HFWLRQPRGXOXV QHW

G |]V |  'LVWDQFHRIWKHERWWRPHGJHILEUHWRWKHRYHUDOOFHQWUHRIJUDYLW\

 6WDWLFPRPHQW UROOLQJVKHDU

E GL DL  6WDWLFPRPHQW VKHDU

HI DQG [HI

FDOFXODWHGLQWRHIIHFWLYHSDQHOWKLFNQHVVHV G \HI DQG G [HI 

\HI  0RPHQWRILQHUWLDDERXWDQD[LVWUDQVYHUVHWRWKHPDLQGLUHFWLRQRIORDG

[HI  0RPHQWRILQHUWLDDERXWDQD[LVWUDQVYHUVHWRWKHDQFLOODU\GLUHFWLRQRIORDG

[ \ \[ . [ . \  QIOXHQFHRQWKHEHQGLQJPRPHQWVE\WUDQVYHUVHH[SDQ

VLRQ>N1PtP@1RUPDOO\ . ' '  LVDVVXPHG

1RUPDOO\ [ \ \[  LVDVVXPHG

WRUV    5HGXFWLRQIDFWRUIRUUHGXFWLRQRIWRUVLRQDOVWLIIQHVV

*PHDQ $ QHW  6KHDUVWLIIQHVVXSRQVWUHVVE\ Y \] >N1P@

6LOO\  :LWKRXWFUDFNVILUVWDIDFWRURILVDVVXPHG&RQVLGHULQJFUDFNVWKHIDFWRULVUHFRP

P[6G 'HVLJQYDOXHRILPSDFW EHQGLQJPRPHQWSHUUXQQLQJPHWUH >N1PP@

Y []6G 'HVLJQYDOXHRILPSDFW ODWHUDOIRUFHSHUUXQQLQJPHWUH >N1P@

P \6G 'HVLJQYDOXHRILPSDFW EHQGLQJPRPHQWSHUUXQQLQJPHWUH >N1PP@

: QHW IPG

Y \]6G 'HVLJQYDOXHRILPSDFW ODWHUDOIRUFHSHUUXQQLQJPHWUH >N1P@

P[ \6G  'HVLJQYDOXHRILPSDFW WRUVLRQDOPRPHQWSHUUXQQLQJPHWUH >N1PP@

*PHDQ  *PHDQ

GPHDQ  $YHUDJHERDUGWKLFNQHVVRIWKHFURVVVHFWLRQFRQVLGHUHG

G (PHDQ $QHW ([WHQVLRQDOVWLIIQHVVLQWKH[GLUHFWLRQ

(PHDQ $ QHW ([WHQVLRQDOVWLIIQHVVLQWKH\GLUHFWLRQ

*6PHDQ $JURVV  *PHDQ $JURVV

Q[6G  'HVLJQYDOXHRILPSDFW D[LDOIRUFHSHUUXQQLQJPHWUH >N1P@

Q \6G  'HVLJQYDOXHRILPSDFW D[LDOIRUFHSHUUXQQLQJPHWUH >N1P@

Q[ \5G  'HVLJQYDOXHRIUHVLVWDQFH IRUDRQHPHWUHVWULS >N1P@

 3UHVVXUH LQ WKH GLUHFWLRQ RI WKH WUDQVYHUVH

E G QHW (QGSUHVVLQJDUHD

6HOIWDSSLQJZRRGVFUHZV

)RUFHSURJUHVVLRQ

'LDSKUDJPV

&HLOLQJV

:DOOV

7KHH[WHQGHG*DPPDPHWKRG

7KHPXOWLOD\HUVKHDUIOH[LEO\FRQQHFWHGEHDP

' /HKUVGDPSLQJIDFWRUPRGDOGDPSLQJ([WHQVLRQDOVWLIIQHVVRIDSODWH

ZLWKWKHIOH[XUDOVWUHQJWK IP MGFN RIWKHILQJHUMRLQWFRQQHFWLRQLQWKHERDUGVQPDQXIDFWXUHU

DQGLWLVLQGXFHGE\H[FHHGLQJ WKHUROOLQJVKHDUVWUHQJWK I95N W RQO\ DPRXQWV WRDERXWKDOI WRRQH

'HVLJQYDOXHRILPSDFWORDGEHDULQJFDSDFLW\

'HVLJQYDOXHRIUHVLVWDQFHORDGEHDULQJFDSDFLW\

IRUNPRG DQGP

&KDUDFWHULVWLF EXLOGLQJ PDWHULDO YDOXHV IRU XSULJKW SODWHV DQG

IRUNPRG DQGP

WKHV\VWHPFRHIILFLHQW NV\V GXHWRVWDWLFHIIHFWVFRPSDUHGWRWKHERDUGVWUHQJWK :LWKDSSOLFDWLRQRI

SHUPDQHQW

7KLVGHWHUPLQDWLRQLVEDVHGRQDQDO\VHVRI78UD]UD]8QLYHUVLW\RI7HFKQRORJ\6HH-EVWOXQG6FKLFN

E GL $UHDQHW

6HFWLRQPRGXOXVQHW

G |]V | 'LVWDQFHRIWKHERWWRPHGJHILEUHWRWKHRYHUDOOFHQWUHRIJUDYLW\

6WDWLFPRPHQWUROOLQJVKHDU

E GL DL 6WDWLFPRPHQWVKHDU

HI DQG [HI

FDOFXODWHGLQWRHIIHFWLYHSDQHOWKLFNQHVVHV G \HI DQG G [HI

\HI 0RPHQWRILQHUWLDDERXWDQD[LVWUDQVYHUVHWRWKHPDLQGLUHFWLRQRIORDG

[HI 0RPHQWRILQHUWLDDERXWDQD[LVWUDQVYHUVHWRWKHDQFLOODU\GLUHFWLRQRIORDG

[ \ \[ . [ . \ QIOXHQFHRQWKHEHQGLQJPRPHQWVE\WUDQVYHUVHH[SDQ

VLRQ>N1PtP@1RUPDOO\ . ' ' LVDVVXPHG

1RUPDOO\ [ \ \[ LVDVVXPHG

WRUV 5HGXFWLRQIDFWRUIRUUHGXFWLRQRIWRUVLRQDOVWLIIQHVV

*PHDQ $ QHW 6KHDUVWLIIQHVVXSRQVWUHVVE\ Y \] >N1P@

6LOO\:LWKRXWFUDFNVILUVWDIDFWRURILVDVVXPHG&RQVLGHULQJFUDFNVWKHIDFWRULVUHFRP

P[6G 'HVLJQYDOXHRILPSDFWEHQGLQJPRPHQWSHUUXQQLQJPHWUH>N1PP@

Y []6G 'HVLJQYDOXHRILPSDFWODWHUDOIRUFHSHUUXQQLQJPHWUH>N1P@

P \6G 'HVLJQYDOXHRILPSDFWEHQGLQJPRPHQWSHUUXQQLQJPHWUH>N1PP@

: QHW IPG

Y \]6G 'HVLJQYDOXHRILPSDFWODWHUDOIRUFHSHUUXQQLQJPHWUH>N1P@

P[ \6G 'HVLJQYDOXHRILPSDFWWRUVLRQDOPRPHQWSHUUXQQLQJPHWUH>N1PP@

PHDQ PHDQ

GPHDQ $YHUDJHERDUGWKLFNQHVVRIWKHFURVVVHFWLRQFRQVLGHUHG

G (PHDQ $QHW ([WHQVLRQDOVWLIIQHVVLQWKH[GLUHFWLRQ

(PHDQ $ QHW ([WHQVLRQDOVWLIIQHVVLQWKH\GLUHFWLRQ

6PHDQ $JURVV PHDQ $JURVV

Q[6G 'HVLJQYDOXHRILPSDFWD[LDOIRUFHSHUUXQQLQJPHWUH>N1P@

Q \6G 'HVLJQYDOXHRILPSDFWD[LDOIRUFHSHUUXQQLQJPHWUH>N1P@

Q[ \5G 'HVLJQYDOXHRIUHVLVWDQFHIRUDRQHPHWUHVWULS>N1P@

3UHVVXUH LQ WKH GLUHFWLRQ RI WKH WUDQVYHUVH

E G QHW (QGSUHVVLQJDUHD

QWKDW $QHW ZDVUHFDOFXODWHGDVIROORZV

9 G 6 5QHW

6FKLFNKRIHUHWDO GHYHORSHGDQDOWHUQDWLYHGHVLJQPRGHOQRWVWDWHGLQWKHSUHVHQWJXLGHOLQH

PXVWEHFRPSOLHGZLWK)RUWKHHYHQWRIILUHDOLPLWVOHQGHUQHVVRI \ IL ILOLP

XHVGHVFULEHGLQWKLVJXLGHOLQHWKHKROGLQJIRUFHZLWK NFULW FDQEHOLPLWHGDVIROORZV

)RUWKHPDWHULDOGHSHQGHQWFRHIILFLHQW NQ IRUODPLQDWHGYHQHHUOXPEHULVVXJJHVWHG

KHI +HLJKWRIWKHUHVLGXDOFURVVVHFWLRQDERYHWKHVXSSRUW

Z LQVWTV QLWLDOGHIRUPDWLRQLQWKHTXDVLSHUPDQHQWGHVLJQVLWXDWLRQ

8VLQJWKHVHYDOXHVHTXDWLRQFDQEHFRQYHUWHGWRHTXDWLRQZLWKJRRGDSSUR[LPDWLRQ

([DPSOH&RPSOLDQFHZLWKDOLPLWIUHTXHQF\RI+]IRUDFHLOLQJ'HZLWKMRLVW8]

NWUDQVYHUVH QIOXHQFHRIWKHWUDQVYHUVHORDGEHDULQJHIIHFW

$FFRUGLQJWR%OD(KOEHFN.UHX]LQJHUXQG6WHFNS

/LPLWYDOXHVDFFRUGLQJWR+DPPXQG5LFKWHU5DEROGDQG+DPPGHVFULEHWKHKLJKHUOLPLWYDOXH

IRUORZHUUHTXLUHPHQWV.UHX]LQJHUXQG0RKUVXJJHVWDERXWWZLFHWKHOLPLWYDOXHV

( HI )OH[XUDOVWLIIQHVVLQWKHGLUHFWLRQRIVSDQ>N1Pt@

$FFRUGLQJWR+DPPXQG5LFKWHU = LVGHWHUPLQHGIRUWKHOLPLWFDVHRIUHVRQDQFH7KLVSURYLGHV

WKHYDOXHRIWKHVWDWHGFRPSHQVDWLRQIXQFWLRQ = H I IRU I = +] Q.UHX]LQJHUXQG0RKUDFFHO

Z JN Z QN

6HH6FKLFNKRIHUHWDO&KDSWHU7KHYDOXHVDSSO\WRFURVVODPLQDWHGWLPEHUHOHPHQWVZLWKRXWMRLQWV

:LWKMRLQWVXSWRDWKLFNQHVVRIPP = PPPLQ LVDSSOLHG

& NPRG IL

)6G 'HVLJQYDOXHRILPSDFWRQWKHIDVWHQHU

* LQI *N 4 :VN

( )

FRVt VLQt

G 1RPLQDOGLDPHWHURIWKHVFUHZLQ>PP@RXWHUWKUHDGGLDPHWHU

7KUHDG/HQJWK/HIVLGHRIVFUHZWLS>PP@

IRUG PP IKN

7KLVYDOXHDSSOLHVWRDVFUHZGLVWDQFHRI D yG IURP D yG WKHUHGXFWLRQPD\EHRPLWWHG

UHFRPPHQGHGIRU& %N NJ P

QRQVWUHVVHG HGJH RI WKH WUDQVYHUVH DF