Vous êtes sur la page 1sur 94

62A/336/FDIS

FINAL DRAFT INTERNATIONAL STANDARD


PROJET FINAL DE NORME INTERNATIONALE
Project number 60601-1-2 Ed. 2
Numéro de projet
IEC/TC or SC CEI/CE ou SC Secretariat / Secrétariat
62A U.S.A
Submitted for parallel voting in CENELEC Circulated on / Diffusé le Voting terminates on / Vote clos le
Soumis au vote parallèle au CENELEC 2001-05-11 2001-07-13
Also of interest to the following committees Supersedes document
Intéresse également les comités suivants Remplace le document
SC 62B, SC 62C, SC 62D 62A/308/CDV - 62A/319/RVC
Horizontal functions concerned
Fonctions horizontales concernées
Safety EMC Environment Quality assurance
Sécurité CEM Environnement Assurance de la qualité
INTERNATIONAL ELECTROTECHNICAL COMMISSION COMMISSION ÉLECTROTECHNIQUE INTERNATIONALE

Title
Medical electrical equipment - Part 1-2: General requirements for safety - Collateral
standard: Electromagnetic compatibility - Requirements and tests

Titre
Appareils électromédicaux - Partie 1-2: Règles générales de sécurité - Norme collatérale:
Compatibilité électromagnétique - Prescriptions et essais

Note d’introduction Introductory note

ATTENTION ATTENTION
VOTE PARALLÈLE IEC – CENELEC
CEI – CENELEC PARALLEL VOTING
L’attention des Comités nationaux de la CEI, membres du The attention of IEC National Committees, members of
CENELEC, est attirée sur le fait que ce projet final de CENELEC, is drawn to the fact that this final Draft
Norme internationale est soumis au vote parallèle. Un International Standard (DIS) is submitted for parallel
bulletin de vote séparé pour le vote CENELEC leur sera voting. A separate form for CENELEC voting will be sent to
envoyé par le Secrétariat Central du CENELEC. them by the CENELEC Central Secretariat.
THIS DOCUMENT IS A DRAFT CIRCULATED FOR APPROVAL. IT MAY NOT BE REFERRED TO AS AN INTERNATIONAL STANDARD UNTIL PUBLISHED AS SUCH.
IN ADDITION TO THEIR EVALUATION AS BEING ACCEPTABLE FOR INDUSTRIAL, TECHNOLOGICAL, COMMERCIAL AND USER PURPOSES, FINAL DRAFT
INTERNATIONAL STANDARDS MAY ON OCCASION HAVE TO BE CONSIDERED IN THE LIGHT OF THEIR POTENTIAL TO BECOME STANDARDS TO WHICH REFERENCE
MAY BE MADE IN NATIONAL REGULATIONS.

CE DOCUMENT EST UN PROJET DIFFUSÉ POUR APPROBATION. IL NE PEUT ÊTRE CITÉ COMME NORME INTERNATIONALE AVANT SA PUBLICATION EN TANT QUE
TELLE.
OUTRE LE FAIT D'ÊTRE EXAMINÉS POUR ÉTABLIR S'ILS SONT ACCEPTABLES À DES FINS INDUSTRIELLES, TECHNOLOGIQUES ET COMMERCIALES, AINSI QUE DU
POINT DE VUE DES UTILISATEURS, LES PROJETS FINAUX DE NORMES INTERNATIONALES DOIVENT PARFOIS ÊTRE EXAMINÉS EN VUE DE LEUR POSSIBILITÉ DE
DEVENIR DES NORMES POUVANT SERVIR DE RÉFÉRENCE DANS LES RÈGLEMENTATIONS NATIONALES.

© International Electrotechnical Commission

FORM 9 (IEC)/FORMULAIRE 9 (CEI)


1999-10-01

±#5#± 9393404052)',6##,(&+(,


&217(176

)25(:25' 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 7
,1752'8&7,21 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 9


6(&7,21#21(#±#*(1(5$/
4# 6FRSH#DQG#REMHFW 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 ;
41534 6FRSH 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 ;


41535 2EMHFW 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 ;
5 7HUPLQRORJ\#DQG#GHILQLWLRQV 111111111111111111111111111111111111111111111111111111111111111111111111111111111 ;
6 *HQHUDO#UHTXLUHPHQWV 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111144
61534 *HQHUDO#UHTXLUHPHQWV#IRU# (/(&7520$*1(7,&#&203$7,%,/,7< #RI# (48,30(17
DQG# 6<67(06 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111144


9 , '(17,),&$7,21 /#PDUNLQJ#DQG#GRFXPHQWV 1111111111111111111111111111111111111111111111111111111111111145

6(&7,216#7:2#72#)285#±#127#86('

6(&7,21#),9(#±#3527(&7,21#$*$,167#+$=$5'6#)520#81:$17('#25#(;&(66,9(
5$',$7,21
69 ( /(&7520$*1(7,&#&203$7,%,/,7< 1111111111111111111111111111111111111111111111111111111111111111111165
691534 ( 0,66,216 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111165


691535 , 0081,7< 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111167

6(&7,216#6,;#72#7(1#±#127#86('


$QQH[#$$$ +LQIRUPDWLYH,#*HQHUDO#JXLGDQFH#DQG#UDWLRQDOH11111111111111111111111111111111111111111111111111117;
$QQH[#%%% +LQIRUPDWLYH,#([DPSOH#FRPSOHWLRQ#RI#7DEOHV#534#WKURXJK#53; 111111111111111111111111111:5
$QQH[#&&& +LQIRUPDWLYH,#*XLGDQFH#LQ#FODVVLILFDWLRQ#WR#&,635#44 1111111111111111111111111111111111111111;7


$QQH[#''' +LQIRUPDWLYH,#*XLGDQFH#LQ#WKH#DSSOLFDWLRQ#RI#,(&#939340405#WR#3DUWLFXODU
6WDQGDUGV 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;9
$QQH[#((( +LQIRUPDWLYH,#( /(&7520$*1(7,&#(19,5210(176 1111111111111111111111111111111111111111111111111;<
$QQH[#))) +QRUPDWLYH,#1RUPDWLYH#UHIHUHQFHV 111111111111111111111111111111111111111111111111111111111111111111111<3


)LJXUH#534#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOH#534#IRU#&,635#44# (48,30(17# DQG


6<67(06# +VHH#91;161534#D,#6,, 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111153
)LJXUH#535#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOH#534#IRU#&,635#47#DQG#&,635#48
(48,30(17# +VHH#91;161534#D,#6,, 1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111154


)LJXUH#536#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOH#535#+VHH#91;161534#D,#9,,111111111111111111111111111111156
)LJXUH#537#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOHV#536#DQG#538#IRU# /,)( 0 6833257,1*
(48,30(17# DQG# 6<67(06# +VHH#91;161534#E,,11111111111111111111111111111111111111111111111111111111111111111111111111115;

)LJXUH#538#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOHV#537#DQG#539#IRU# (48,30(17# DQG




6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1* #+VHH#91;161534#E,,


1111111111111111111111111111111111111111111111111111115<

9393404052)',6##,(&+(, ±#6#±


)LJXUH#$$$14#±#([DPSOH#RI#FDEOH#DUUDQJHPHQW#IRU#UDGLDWHG# ,0081,7< #WHVW
+VHH#69153516#E,#;,1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111:3
)LJXUH#$$$15#±#([DPSOHV#VKRZLQJ#PD[LPXP#GLPHQVLRQ#IRU#DQ# (48,30(17 #ZLWK#RQH#DQG
ZLWK#WZR#FDEOHV#+VHH#69153519#D,#8#DQG#9, 11111111111111111111111111111111111111111111111111111111111111111111111111111:4


7DEOH#534#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#HPLVVLRQV#±
IRU#DOO# (48,30(17 #DQG# 6<67(06# +VHH#91;161534#D,#6,, 11111111111111111111111111111111111111111111111111111111111114<
7DEOH#535#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU#DOO# (48,30(17 #DQG# 6<67(06 #+VHH#91;161534#D,#9,, 111111111111111111111111111111111111111111111111111111111111155
7DEOH#536#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±


IRU# /,)( 0 6833257,1*#(48,30(17 #DQG# 6<67(06 #+VHH#91;161534#E,, 1111111111111111111111111111111111111111111157
7DEOH#537#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU# (48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*# +VHH#91;161534#E,, 111111111111111111111111158
7DEOH#538#±#5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ#SRUWDEOH#DQG#PRELOH#5)
FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH# (48,30(17# RU# 6<67(0#±#IRU# /,)( 0 6833257,1*


(48,30(17# DQG# 6<67(06# +VHH#91;161534#E,,111111111111111111111111111111111111111111111111111111111111111111111111111159

7DEOH#539#±#5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ#SRUWDEOH#DQG#PRELOH#5)
FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH# (48,30(17# RU# 6<67(0#±#IRU# (48,30(17# DQG
6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*# +VHH#91;161534#E,111111111111111111111111111111111111111111111111111111115:

7DEOH#53:#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±

IRU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06# WKDW#DUH#VSHFLILHG#IRU#XVH#RQO\#LQ#D
VKLHOGHG#ORFDWLRQ#+VHH#91;161534#F,#7,,1111111111111111111111111111111111111111111111111111111111111111111111111111111111163
7DEOH#53;#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU# (48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*# DQG#DUH#VSHFLILHG#IRU#XVH#RQO\
LQ#D#VKLHOGHG#ORFDWLRQ#+VHH#91;161534#F,#7,, 111111111111111111111111111111111111111111111111111111111111111111111111111164


7DEOH#53<#±#0RGXODWLRQ#IUHTXHQF\/# 3+<6,2/2*,&$/#6,08/$7,21#)5(48(1&< /#DQG


23(5$7,1*#)5(48(1&< 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111116;

7DEOH#543#±#, 0081,7<#7(67#/(9(/6 #IRU#YROWDJH#GLSV 111111111111111111111111111111111111111111111111111111111111111179


7DEOH#544#±#, 0081,7<#7(67#/(9(/ #IRU#YROWDJH#LQWHUUXSWLRQ111111111111111111111111111111111111111111111111111111179


7DEOH#%%%14#±#([DPSOH#+4,#RI#FRPSOHWHG#7DEOH#534 11111111111111111111111111111111111111111111111111111111111111:5
7DEOH#%%%15#±#([DPSOH#+5,#RI#FRPSOHWHG#7DEOH#534 11111111111111111111111111111111111111111111111111111111111111:6
7DEOH#%%%16#±#([DPSOH#+6,#RI#FRPSOHWHG#7DEOH#534 11111111111111111111111111111111111111111111111111111111111111:7


7DEOH#%%%17#±#([DPSOH#RI#FRPSOHWHG#7DEOH#535 1111111111111111111111111111111111111111111111111111111111111111111:8
7DEOH#%%%18#±#([DPSOH#+4,#WHVW/# ,0081,7< #DQG# &203/,$1&(#/(9(/6 111111111111111111111111111111111111111:9
7DEOH#%%%19#±#([DPSOH#RI#FRPSOHWHG#7DEOH#536 1111111111111111111111111111111111111111111111111111111111111111111::
7DEOH#%%%1:#±#([DPSOH#RI#FRPSOHWHG#7DEOH#538 1111111111111111111111111111111111111111111111111111111111111111111:;
7DEOH#%%%1;#±#([DPSOH#RI#FRPSOHWHG#7DEOH#537 1111111111111111111111111111111111111111111111111111111111111111111:<


7DEOH#%%%1<#±#([DPSOH#RI#FRPSOHWHG#7DEOH#539 1111111111111111111111111111111111111111111111111111111111111111111;3
7DEOH#%%%143#±#([DPSOH#+5,#WHVW/# ,0081,7< #DQG# &203/,$1&(#/(9(/6 1111111111111111111111111111111111111;3
7DEOH#%%%144#±#([DPSOH#RI#FRPSOHWHG#7DEOH#53: 11111111111111111111111111111111111111111111111111111111111111111;4
7DEOH#%%%145#±#([DPSOH#+6,#WHVW/# ,0081,7< #DQG# &203/,$1&(#/(9(/6 1111111111111111111111111111111111111;5


7DEOH#%%%146#±#([DPSOH#RI#FRPSOHWHG#7DEOH#53; 11111111111111111111111111111111111111111111111111111111111111111;6

%LEOLRJUDSK\ 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111<5


±#7#± 9393404052)',6##,(&+(,


,17(51$7,21$/#(/(&7527(&+1,&$/#&200,66,21
BBBBBBBBBBB

0(',&$/#(/(&75,&$/#(48,30(17#±

3DUW#405=#*HQHUDO#UHTXLUHPHQWV#IRU#VDIHW\#±#&ROODWHUDO#VWDQGDUG=


(OHFWURPDJQHWLF#FRPSDWLELOLW\#±#5HTXLUHPHQWV#DQG#WHVWV

)25(:25'


4, 7KH#,(&#+,QWHUQDWLRQDO#(OHFWURWHFKQLFDO#&RPPLVVLRQ,#LV#D#ZRUOGZLGH#RUJDQL]DWLRQ#IRU#VWDQGDUGL]DWLRQ#FRPSULVLQJ
DOO# QDWLRQDO# HOHFWURWHFKQLFDO# FRPPLWWHHV# +,(&# 1DWLRQDO# &RPPLWWHHV,1# 7KH# REMHFW# RI# WKH# ,(&# LV# WR# SURPRWH
LQWHUQDWLRQDO#FR0RSHUDWLRQ#RQ#DOO# TXHVWLRQV#FRQFHUQLQJ#VWDQGDUGL]DWLRQ# LQ# WKH# HOHFWULFDO# DQG# HOHFWURQLF# ILHOGV1# 7R
WKLV# HQG# DQG# LQ# DGGLWLRQ# WR# RWKHU# DFWLYLWLHV/# WKH# ,(&# SXEOLVKHV# ,QWHUQDWLRQDO# 6WDQGDUGV1# 7KHLU# SUHSDUDWLRQ# LV
HQWUXVWHG# WR# WHFKQLFDO# FRPPLWWHHV># DQ\# ,(&# 1DWLRQDO# &RPPLWWHH# LQWHUHVWHG# LQ# WKH# VXEMHFW# GHDOW# ZLWK# PD\
SDUWLFLSDWH# LQ# WKLV# SUHSDUDWRU\# ZRUN1# ,QWHUQDWLRQDO/# JRYHUQPHQWDO# DQG# QRQ0JRYHUQPHQWDO# RUJDQL]DWLRQV# OLDLVLQJ


ZLWK# WKH# ,(&# DOVR# SDUWLFLSDWH# LQ# WKLV# SUHSDUDWLRQ1# 7KH# ,(&# FROODERUDWHV# FORVHO\# ZLWK# WKH# ,QWHUQDWLRQDO
2UJDQL]DWLRQ# IRU# 6WDQGDUGL]DWLRQ# +,62,# LQ# DFFRUGDQFH# ZLWK# FRQGLWLRQV# GHWHUPLQHG# E\# DJUHHPHQW# EHWZHHQ# WKH
WZR#RUJDQL]DWLRQV1
5, 7KH# IRUPDO# GHFLVLRQV# RU# DJUHHPHQWV# RI# WKH# ,(&# RQ# WHFKQLFDO# PDWWHUV# H[SUHVV/# DV# QHDUO\# DV# SRVVLEOH/# DQ
LQWHUQDWLRQDO# FRQVHQVXV# RI# RSLQLRQ# RQ# WKH# UHOHYDQW# VXEMHFWV# VLQFH# HDFK# WHFKQLFDO# FRPPLWWHH# KDV# UHSUHVHQWDWLRQ
IURP#DOO#LQWHUHVWHG#1DWLRQDO#&RPPLWWHHV1

6, 7KH#GRFXPHQWV#SURGXFHG#KDYH#WKH#IRUP#RI#UHFRPPHQGDWLRQV#IRU#LQWHUQDWLRQDO#XVH#DQG#DUH#SXEOLVKHG#LQ#WKH#IRUP
RI# VWDQGDUGV/# WHFKQLFDO# VSHFLILFDWLRQV/# WHFKQLFDO# UHSRUWV# RU# JXLGHV# DQG# WKH\# DUH# DFFHSWHG# E\# WKH# 1DWLRQDO
&RPPLWWHHV#LQ#WKDW#VHQVH1
7,## ,Q# RUGHU# WR# SURPRWH# LQWHUQDWLRQDO# XQLILFDWLRQ/# ,(&# 1DWLRQDO# &RPPLWWHHV# XQGHUWDNH# WR# DSSO\# ,(&# ,QWHUQDWLRQDO
6WDQGDUGV# WUDQVSDUHQWO\# WR# WKH# PD[LPXP# H[WHQW# SRVVLEOH# LQ# WKHLU# QDWLRQDO# DQG# UHJLRQDO# VWDQGDUGV1# $Q\
GLYHUJHQFH# EHWZHHQ# WKH# ,(&# 6WDQGDUG# DQG# WKH# FRUUHVSRQGLQJ# QDWLRQDO# RU# UHJLRQDO# VWDQGDUG# VKDOO# EH# FOHDUO\
LQGLFDWHG#LQ#WKH#ODWWHU1


8,## 7KH# ,(&# SURYLGHV# QR# PDUNLQJ# SURFHGXUH# WR# LQGLFDWH# LWV# DSSURYDO# DQG# FDQQRW# EH# UHQGHUHG# UHVSRQVLEOH# IRU# DQ\
HTXLSPHQW#GHFODUHG#WR#EH#LQ#FRQIRUPLW\#ZLWK#RQH#RI#LWV#VWDQGDUGV1
9,## $WWHQWLRQ#LV#GUDZQ#WR#WKH#SRVVLELOLW\#WKDW#VRPH#RI#WKH#HOHPHQWV#RI#WKLV#,QWHUQDWLRQDO#6WDQGDUG#PD\#EH#WKH#VXEMHFW
RI#SDWHQW#ULJKWV1#7KH#,(&#VKDOO#QRW#EH#KHOG#UHVSRQVLEOH#IRU#LGHQWLI\LQJ#DQ\#RU#DOO#VXFK#SDWHQW#ULJKWV1


,QWHUQDWLRQDO# 6WDQGDUG# ,(&# 939340405# KDV# EHHQ# SUHSDUHG# E\# VXE0FRPPLWWHH# 95$=# &RPPRQ
DVSHFWV# RI# HOHFWULFDO# HTXLSPHQW# XVHG# LQ# PHGLFDO# SUDFWLFH/# RI# ,(&# WHFKQLFDO# FRPPLWWHH# 95=
(OHFWULFDO#HTXLSPHQW#LQ#PHGLFDO#SUDFWLFH1

7KLV#VHFRQG#HGLWLRQ#RI#,(&#939340405#FDQFHOV#DQG#UHSODFHV#WKH#ILUVW#HGLWLRQ#SXEOLVKHG#LQ#4<<6


DQG#FRQVWLWXWHV#D#WHFKQLFDO#UHYLVLRQ1

7KLV# VHFRQG# HGLWLRQ# FRQVWLWXWHV# D# &ROODWHUDO# 6WDQGDUG# WR# ,(&# 9393404=# 0HGLFDO# HOHFWULFDO
HTXLSPHQW# ±# 3DUW# 4=# *HQHUDO# UHTXLUHPHQWV# IRU# VDIHW\/# KHUHLQDIWHU# UHIHUUHG# WR# DV# WKH# *HQHUDO
6WDQGDUG1

7KH#WH[W#RI#WKLV#&ROODWHUDO#6WDQGDUG#LV#EDVHG#RQ#WKH#IROORZLQJ#GRFXPHQWV=


)',6 5HSRUW#RQ#YRWLQJ
95$2;;;2)',6 95$2;;;259'

)XOO#LQIRUPDWLRQ#RQ#WKH#YRWLQJ#IRU# WKH#DSSURYDO#RI# WKLV#&ROODWHUDO#6WDQGDUG#FDQ#EH#IRXQG# LQ# WKH




UHSRUW#RQ#YRWLQJ#LQGLFDWHG#LQ#WKH#DERYH#WDEOH1


9393404052)',6##,(&+(, ±#8#±


,Q#WKH#,(&#93934#VHULHV#RI#SXEOLFDWLRQV/#&ROODWHUDO#6WDQGDUGV#VSHFLI\#JHQHUDO#UHTXLUHPHQWV#IRU
VDIHW\#DSSOLFDEOH#WR=

−# D#JURXS#RI# 0(',&$/#(/(&75,&$/#(48,30(17 #+H1J1#UDGLRORJLFDO#HTXLSPHQW,>


−# D# VSHFLILF# FKDUDFWHULVWLF# RI# DOO# 0(',&$/# (/(&75,&$/# (48,30(17 # QRW# IXOO\# DGGUHVVHG# LQ# WKH
*HQHUDO#6WDQGDUG#+H1J1# (/(&7520$*1(7,&#&203$7,%,/,7< ,1


,Q# DGGLWLRQ/# ,(&# 939340404# KDV# H[SDQGHG# WKH# VFRSH# RI# WKH# JHQHUDO# VWDQGDUG# WR# LQFOXGH
0(',&$/# (/(&75,&$/# 6<67(06 1# ,Q# UHFRJQLWLRQ# RI# WKDW# H[SDQGHG# VFRSH/# WKLV# HGLWLRQ# RI# WKH# (0&
&ROODWHUDO# 6WDQGDUG# WDNHV# LQWR# DFFRXQW# WKH# IDFW# WKDW# WKH# JHQHUDO# VWDQGDUG# QRZ# DSSOLHV# WR
0(',&$/# (/(&75,&$/# 6<67(06 # DV# ZHOO# DV# 0(',&$/# (/(&75,&$/# (48,30(17# DQG# LQFOXGHV# (0&
UHTXLUHPHQWV#WKDW#DUH/#LQ#PRVW#FDVHV/#DSSOLFDEOH#WR#DOO#SDUWV#RI#WKH# 6<67(01


7KH# QXPEHULQJ# RI# VHFWLRQV/# FODXVHV# DQG# VXEFODXVHV# RI# WKLV# &ROODWHUDO# 6WDQGDUG# FRUUHVSRQGV
ZLWK#WKDW#RI#WKH#*HQHUDO#6WDQGDUG1

6XEFODXVHV# DQG# ILJXUHV# WKDW# DUH# DGGLWLRQDO# WR# WKRVH# RI# WKH# *HQHUDO# 6WDQGDUG# DUH# QXPEHUHG
VWDUWLQJ#IURP#534># DGGLWLRQDO#DQQH[HV# DUH# OHWWHUHG# $$$/# %%%/# HWF1/# DQG# DGGLWLRQDO# LWHPV# DDD,/


EEE,/#HWF1

,Q#WKLV#&ROODWHUDO#6WDQGDUG/#WKH#IROORZLQJ#SULQW#W\SHV#DUH#XVHG=

−# UHTXLUHPHQWV/#FRPSOLDQFH#ZLWK#ZKLFK#FDQ#EH#WHVWHG#DQG#GHILQLWLRQV=#LQ#URPDQ#W\SH>

−# H[SODQDWLRQV/#DGYLFH/#JHQHUDO#VWDWHPHQWV/#H[FHSWLRQV#DQG#UHIHUHQFHV=#LQ#VPDOOHU#W\SH>
−# WHVW#VSHFLILFDWLRQV=#LQ#LWDOLF#W\SH>
−# 7(506# '(),1('# ,1# &/$86(# 5# 2)# 7+(# *(1(5$/# 67$1'$5'# 25# 2)# 7+,6# &2//$7(5$/# 67$1'$5' =
60$//#&$3,7$/6 1


127(## 'HILQHG# WHUPV# DUH# QRW# SULQWHG# LQ# 60$//# &$3,7$/6 # LQ# 7DEOHV# 534053;/# LQ# WKH# WDEOHV# LQ# $QQH[# %%%# DQG# LQ
VWDWHPHQWV#UHTXLUHG#WR#DSSHDU# LQ# WKH# $&&203$1<,1*# '2&80(176# RU# ,QVWUXFWLRQV# IRU# XVH# EHFDXVH# WKH\# DUH# LQWHQGHG
IRU#WKH#FXVWRPHU#RU#XVHU/#ZKR#PD\#QRW#EH#IDPLOLDU#ZLWK#WKH#GHILQHG#WHUPV#RI#,(&#93934#VWDQGDUGV1

7KH#UHTXLUHPHQWV#DUH#IROORZHG#E\#VSHFLILFDWLRQV#IRU#WKH#UHOHYDQW#WHVWV1


6RPH# SURYLVLRQV# RU# VWDWHPHQWV# LQ# WKH# ERG\# RI# WKLV# &ROODWHUDO# 6WDQGDUG# UHTXLUH# DGGLWLRQDO
LQIRUPDWLRQ1# 6XFK# LQIRUPDWLRQ# LV# SUHVHQWHG# LQ# WKH# LQIRUPDWLYH# DQQH[# $$$/# *HQHUDO# JXLGDQFH
DQG# UDWLRQDOH1# $Q# DVWHULVN# +-,# LQ# WKH# OHIW# PDUJLQ# RI# D# FODXVH# RU# VXEFODXVH# LQGLFDWHV# WKH
SUHVHQFH#RI#DGGLWLRQDO#LQIRUPDWLRQ#LQ#$QQH[#$$$1


$QQH[#)))#IRUPV#DQ#LQWHJUDO#SDUW#RI#WKLV#VWDQGDUG1

$QQH[HV#$$$/#%%%/#&&&/#'''/#(((#DQG#WKH#%LEOLRJUDSK\#DUH#IRU#LQIRUPDWLRQ#RQO\1

7KH# FRPPLWWHH# KDV# GHFLGHG# WKDW# WKH# FRQWHQWV# RI# WKLV# SXEOLFDWLRQ# ZLOO# UHPDLQ# XQFKDQJHG# XQWLO
53381#$W#WKLV#GDWH/#WKH#SXEOLFDWLRQ#ZLOO#EH


‡ UHFRQILUPHG>
‡ ZLWKGUDZQ>
‡ UHSODFHG#E\#D#UHYLVHG#HGLWLRQ/#RU
‡ DPHQGHG1



±#9#± 9393404052)',6##,(&+(,


,1752'8&7,21

7KH# QHHG# IRU# HVWDEOLVKLQJ# VSHFLILF# (/(&7520$*1(7,&# &203$7,%,/,7< # VWDQGDUGV# IRU# 0(',&$/
(/(&75,&$/# (48,30(17 # DQG# 0(',&$/# (/(&75,&$/# 6<67(06# +UHIHUUHG# WR# DV# (48,30(17 # DQG
6<67(06 /#UHVSHFWLYHO\/#LQ#WKLV#&ROODWHUDO#6WDQGDUG,#LV#ZHOO#UHFRJQL]HG1


,Q# SDUWLFXODU/# WKH# H[LVWHQFH# RI# (/(&7520$*1(7,&# (0,66,21# VWDQGDUGV# LV# HVVHQWLDO# IRU# WKH
SURWHFWLRQ#RI=

−# VDIHW\#VHUYLFHV>
−# RWKHU# (48,30(17 #DQG# 6<67(06 >


−# QRQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW#+H1J1#FRPSXWHUV,>
−# WHOHFRPPXQLFDWLRQV#+H1J1#UDGLR279/#WHOHSKRQH/#UDGLR0QDYLJDWLRQ,1

2I#HYHQ#PRUH#LPSRUWDQFH/#WKH#H[LVWHQFH# RI# (/(&7520$*1(7,& # ,0081,7<# VWDQGDUGV# LV#HVVHQWLDO


WR# DVVXUH# VDIHW\# RI# (48,30(17 # DQG# 6<67(06 1# ( /(&7520$*1(7,&# &203$7,%,/,7< # +VHH# GHILQLWLRQ
51537,# GLIIHUV# IURP# RWKHU# DVSHFWV# RI# VDIHW\# FRYHUHG# E\# ,(&# 9393404# EHFDXVH# WKH


HOHFWURPDJQHWLF# SKHQRPHQD# H[LVW/# ZLWK# YDU\LQJ# GHJUHHV# RI# VHYHULW\/# LQ# WKH# QRUPDO# XVH
HQYLURQPHQW# RI# DOO# (48,30(17 # DQG# 6<67(06 # DQG# E\# GHILQLWLRQ# WKH# HTXLSPHQW# PXVW# ³SHUIRUP
VDWLVIDFWRULO\´# ZLWKLQ# LWV# LQWHQGHG# HQYLURQPHQW# LQ# RUGHU# WR# HVWDEOLVK# (/(&7520$*1(7,&
&203$7,%,/,7< 1# 7KLV# PHDQV# WKDW# WKH# FRQYHQWLRQDO# VLQJOH# IDXOW# DSSURDFK# WR# VDIHW\# LV# QRW
DSSURSULDWH# IRU# DSSOLFDWLRQ# WR# (/(&7520$*1(7,&# &203$7,%,/,7< # VWDQGDUGV1# 7KH# (/(&752 0

0$*1(7,&# ',6785%$1&(# HQYLURQPHQW# FDQ# EH# FRPSDUHG# WR# DPELHQW# WHPSHUDWXUH/# KXPLGLW\# DQG
DWPRVSKHULF# SUHVVXUH1# ( 48,30(17 # DQG# 6<67(06 # PD\# H[SHULHQFH# HQYLURQPHQWDO# FRQGLWLRQV
ZLWKLQ#WKH#H[SHFWHG#UDQJH#DW#DQ\#WLPH/#DQG#IRU#H[WHQGHG#SHULRGV#RI#WLPH1#$V#ZLWK#DWPRVSKHULF
SUHVVXUH# DQG# KXPLGLW\/# WKH# XVHU# RI# WKH# (48,30(17 # RU# 6<67(0 4# PD\# QRW# EH# DZDUH# RI# DPELHQW
OHYHOV#RQ#D#FRQWLQXRXV#EDVLV1#7KH# ,0081,7<#7(67#/(9(/6 #VSHFLILHG#LQ#WKLV#VWDQGDUG#+,(&#93934
7(67# /(9(/6 ,# UHSUHVHQW# WKH# UDQJH# IRXQG# LQ# WKH# JHQHUDO# PHGLFDO# XVH# HQYLURQPHQW1# 7KHUHIRUH/


XQGHU#WKHVH#FRQGLWLRQV/#WKH#SHUIRUPDQFH#RI#WKH# (48,30(17 #RU# 6<67(0#ZRXOG#DOVR#EH#H[SHFWHG


WR#EH#QRUPDO1

,(&# 93846# VWDWHV# WKDW# WKH# GLVWLQFWLRQ# EHWZHHQ# VDIHW\# DQG# SHUIRUPDQFH# VWDQGDUGV# LV# RIWHQ
XQFOHDU1# ( 48,30(17 # DQG# 6<67(06 # DUH# XVHG# LQ# WKH# SUDFWLFH# RI# PHGLFLQH# EHFDXVH# WKH\# SURYLGH


QHHGHG# )81&7,216 1# ,I# DQ# (48,30(17 # RU# 6<67(0# GRHV# QRW# SURYLGH# LWV# QHHGHG# )81&7,21 /
EHFDXVH# RI# D# ODFN# RI# ,0081,7<# WR# HYHQWV# H[SHFWHG# LQ# WKH# QRUPDO# XVH# HQYLURQPHQW/# WKLV
LQWHUIHUHV# ZLWK# WKH# SUDFWLFH# RI# PHGLFLQH# DQG# FDQQRW# EH# FRQVLGHUHG# DQ# DFFHSWDEOH# VLWXDWLRQ1
7KHUHIRUH/#WKLV#VHFRQG#HGLWLRQ#RI#,(&#939340405#GHSDUWV#IURP#WKH#ILUVW#HGLWLRQ#E\#HVWDEOLVKLQJ#D
PLQLPXP# EDVHOLQH# RI# SHUIRUPDQFH# LQ# WKH# SUHVHQFH# RI# H[SHFWHG# OHYHOV# RI# (/(&7520$*1(7,&


',6785%$1&( 1

7KLV# VHFRQG# HGLWLRQ# UHFRJQL]HV# WKDW# WKHUH# LV# D# VKDUHG# UHVSRQVLELOLW\# EHWZHHQ# PDQXIDFWXUHUV/
FXVWRPHUV# DQG# XVHUV# WR# HQVXUH# WKDW# (48,30(17 # DQG# 6<67(06 # DUH# GHVLJQHG# DQG# RSHUDWHG# DV
LQWHQGHG1# 7KH# (48,30(17 # RU# 6<67(0# PDQXIDFWXUHU¶V# UHVSRQVLELOLW\# LV# WR# GHVLJQ# DQG# PDQX0
IDFWXUH#WR#PHHW#WKH#UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#DQG#WR#GLVFORVH#LQIRUPDWLRQ# WR#WKH#FXVWRPHU
RU# XVHU# VR# WKDW# D# FRPSDWLEOH# (/(&7520$*1(7,&# (19,5210(17# FDQ# EH# PDLQWDLQHG# LQ# RUGHU# WKDW
WKH# (48,30(17 #RU# 6<67(0#ZLOO#SHUIRUP#DV#LQWHQGHG1


%HFDXVH# WKH# SUDFWLFH# RI# PHGLFLQH# LQYROYHV# PDQ\# VSHFLDOLWLHV/# WKHUH# ZLOO# E\# QHFHVVLW\# EH
(48,30(17 # DQG# 6<67(06 # WKDW# DUH# GHVLJQHG# WR# SHUIRUP# D# YDULHW\# RI# )81&7,216 1# 6RPH
)81&7,216 # LQYROYH/# IRU# H[DPSOH/# PHDVXUHPHQW# RI# VLJQDOV# IURP# D# 3$7,(17 # WKDW# DUH# RI# YHU\# ORZ
OHYHOV# ZKHQ# FRPSDUHG# WR# (/(&7520$*1(7,&# 12,6( # OHYHOV# WKDW# FDQ# EH# FRXSOHG# LQWR# (48,30(17


DQG# 6<67(06 # GXULQJ# WKH# (/(&7520$*1(7,&# ,0081,7< # WHVWLQJ# VSHFLILHG# LQ# WKLV# VWDQGDUG1
%HFDXVH# RI# WKH# SURYHQ# EHQHILWV# RI# PDQ\# VXFK# (48,30(17 # DQG# 6<67(06 /# WKLV# VWDQGDUG# DOORZV
WKH# ,0081,7<# 7(67# /(9(/6 # WR# EH# ORZHUHG/# SURYLGHG# WKHUH# LV# VXIILFLHQW# MXVWLILFDWLRQ# EDVHG# RQ
SK\VLFDO/# WHFKQRORJLFDO# RU# SK\VLRORJLFDO# OLPLWDWLRQV1# ,Q# WKLV# FDVH/# WKH# PDQXIDFWXUHU# LV# UHTXLUHG


BBBBBBBBBBB
4# ,Q#WKLV#VWDQGDUG/#³RU´#VKRXOG#EH#XQGHUVWRRG#WR#LQFOXGH#³DQG´1

9393404052)',6##,(&+(, ±#:#±


WR#GLVFORVH#WKH#OHYHOV#DW#ZKLFK#WKH# (48,30(17 #RU# 6<67(0#PHHWV#WKH#SHUIRUPDQFH#UHTXLUHPHQWV
RI# WKLV# VWDQGDUG# DQG# WR# VSHFLI\# WKH# FKDUDFWHULVWLFV# RI# WKH# (/(&7520$*1(7,&# XVH# HQYLURQPHQW
DQG# KRZ# WKLV# HQYLURQPHQW# LV# HVWDEOLVKHG/# LQ# ZKLFK# WKH# (48,30(17 # RU# 6<67(0# ZLOO# SHUIRUP# DV
LQWHQGHG1

7KLV# VWDQGDUG# DOVR# UHFRJQL]HV# WKDW# IRU# FHUWDLQ# HQYLURQPHQWV/# KLJKHU# ,0081,7<# /(9(/6 # PD\# EH


UHTXLUHG1#5HVHDUFK#QHFHVVDU\#WR#GHWHUPLQH#KRZ#WR#LGHQWLI\#WKH#HQYLURQPHQWV#WKDW#PD\#UHTXLUH
KLJKHU# ,0081,7<#/(9(/6 /#DV#ZHOO#DV#ZKDW#WKH#OHYHOV#VKRXOG#EH/#LV#LQ#SURJUHVV1

)LQDOO\/# WKLV# VWDQGDUG# UHFRJQL]HV# WKDW# IRU# /,)( 0 6833257,1*# (48,30(17 # DQG# 6<67(06 /# KLJKHU
OHYHOV#RI# ,0081,7< #DUH#QHFHVVDU\#LQ#RUGHU#WR#HVWDEOLVK#D#EURDGHU#VDIHW\#PDUJLQ/#HYHQ#IRU#XVH#LQ
WKH# JHQHUDO# PHGLFDO# XVH# HQYLURQPHQW1# 7KHUHIRUH/# WKLV# VWDQGDUG# VSHFLILHV# DGGLWLRQDO


UHTXLUHPHQWV#IRU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06 1

7KLV# VHFRQG# HGLWLRQ# DOORZV# D# ULVN# DQDO\VLV# WR# EH# XVHG# WR# GHWHUPLQH# WKH# (66(17,$/
3(5)250$1&( # DQG# VDIHW\# RI# 0(',&$/# (/(&75,&$/# (48,30(17 # WKDW# PXVW# EH# H[DPLQHG# GXULQJ
,0081,7< # WHVWLQJ# DQG# ZKHWKHU# WHVWLQJ# DFFRUGLQJ# WR# WKLV# VWDQGDUG# LV# UHTXLUHG# IRU# QRQ0PHGLFDO
HOHFWULFDO#HTXLSPHQW#WKDW#LV#FRPELQHG#ZLWK# 0(',&$/#(/(&75,&$/#(48,30(17 #WR#IRUP#D# 6<67(01


7KLV# VWDQGDUG# LV# EDVHG# RQ# H[LVWLQJ# ,(&# VWDQGDUGV# SUHSDUHG# E\# 6&#95$/# 7&#::
+(OHFWURPDJQHWLF# FRPSDWLELOLW\# EHWZHHQ# HOHFWULFDO# HTXLSPHQW# LQFOXGLQJ# QHWZRUNV,# DQG# &,635
+,QWHUQDWLRQDO#VSHFLDO#FRPPLWWHH#RQ#UDGLR#LQWHUIHUHQFH,1

7KH# (/(&7520$*1(7,&# &203$7,%,/,7<# UHTXLUHPHQWV# VSHFLILHG# E\# WKLV# VWDQGDUG# DUH# JHQHUDOO\
DSSOLFDEOH# WR# (48,30(17 # DQG# 6<67(06 # DV# GHVFULEHG# LQ# 415341# )RU# FHUWDLQ# W\SHV# RI# (48,30(17
DQG# 6<67(06 /# WKHVH# UHTXLUHPHQWV# PD\# QHHG# WR# EH# PRGLILHG# E\# WKH# VSHFLDO# UHTXLUHPHQWV# RI# D
3DUWLFXODU#6WDQGDUG1#:ULWHUV#RI#3DUWLFXODU#6WDQGDUGV#DUH#HQFRXUDJHG#WR#UHIHU#WR#$QQH[#'''#IRU
JXLGDQFH#LQ#WKH#DSSOLFDWLRQ#RI#WKLV#VWDQGDUG1








±#;#± 9393404052)',6##,(&+(,


0(',&$/#(/(&75,&$/#(48,30(17#±

3DUW#405=#*HQHUDO#UHTXLUHPHQWV#IRU#VDIHW\#±#&ROODWHUDO#VWDQGDUG=
(OHFWURPDJQHWLF#FRPSDWLELOLW\#±#5HTXLUHPHQWV#DQG#WHVWV


6(&7,21#21(#±#*(1(5$/

4# 6FRSH#DQG#REMHFW


-41534## 6FRSH
7KLV# VWDQGDUG# DSSOLHV# WR# (/(&7520$*1(7,&# &203$7,%,/,7< # RI# 0(',&$/# (/(&75,&$/# (48,30(17
DQG# 0(',&$/# (/(&75,&$/# 6<67(06/ # KHUHLQDIWHU# UHIHUUHG# WR# DV# (48,30(17 # DQG# 6<67(06 /
UHVSHFWLYHO\1


41535## 2EMHFW
7KLV# VWDQGDUG# VSHFLILHV# UHTXLUHPHQWV# DQG# WHVWV# IRU# (/(&7520$*1(7,&# &203$7,%,/,7< # RI
(48,30(17# DQG# 6<67(06 # DQG# VHUYHV# DV# WKH# EDVLV# RI# (/(&7520$*1(7,&# &203$7,%,/,7<
UHTXLUHPHQWV#DQG#WHVWV#LQ#3DUWLFXODU#6WDQGDUGV1

5# 7HUPLQRORJ\#DQG#GHILQLWLRQV

)RU#WKH#SXUSRVHV#RI#WKLV#VWDQGDUG/#WKH#IROORZLQJ#GHILQLWLRQV#DSSO\=


51534
+ ,0081,7<,# &203/,$1&(#/(9(/
OHYHO# OHVV# WKDQ# RU# HTXDO# WR# WKH# ,0081,7<# /(9(/# IRU# ZKLFK# WKH# (48,30(17# RU# 6<67(0# PHHWV# WKH
UHTXLUHPHQWV#RI#WKH#DSSOLFDEOH#VXEFODXVH#RI#6915351
127( $GGLWLRQDO#UHTXLUHPHQWV#IRU# &203/,$1&(#/(9(/6 #DUH#VSHFLILHG#LQ#91;1615341


-51535
'(*5$'$7,21 #+RI#SHUIRUPDQFH,
XQGHVLUHG# GHSDUWXUH# LQ# WKH# RSHUDWLRQDO# SHUIRUPDQFH# RI# DQ# (48,30(17# RU# 6<67(0# IURP# LWV
LQWHQGHG#SHUIRUPDQFH


127( 7KH#WHUP#% '(*5$'$7,21 %#FDQ#DSSO\#WR#WHPSRUDU\#RU#SHUPDQHQW#IDLOXUH1

>,(9#49403404</#PRGLILHG@

-51536
())(&7,9(#5$',$7('#32:(5 #+(53,
SRZHU#UHTXLUHG#DW#WKH#LQSXW#RI#D#ORVVOHVV#UHIHUHQFH#DQWHQQD#WR#SURGXFH/#LQ#D#JLYHQ#GLUHFWLRQ#DW
DQ\#VSHFLILHG#GLVWDQFH/#WKH#VDPH#SRZHU#IOX[#GHQVLW\#DV#WKDW#UDGLDWHG#E\#D#JLYHQ#GHYLFH


127( $V# XVHG# E\# WKH# ,78# DQG# DV# XVHG# LQ# &KDSWHU# :45# RI# WKH# ,(9/# WKH# WHUP# ³HIIHFWLYH# UDGLDWHG# SRZHU´# DSSHDUV
ZLWKRXW#TXDOLILFDWLRQ#RQO\#ZKHQ#WKH#UHIHUHQFH#DQWHQQD#LV#D#KDOI0ZDYH#GLSROH1

>,(9#494037049/#PRGLILHG@


-51537
(/(&7520$*1(7,&#&203$7,%,/,7< #+(0&,
DELOLW\# RI# DQ# (48,30(17# RU# 6<67(0# WR# IXQFWLRQ# VDWLVIDFWRULO\# LQ# LWV# (/(&7520$*1(7,&
(19,5210(17 # ZLWKRXW# LQWURGXFLQJ# LQWROHUDEOH# (/(&7520$*1(7,&# ',6785%$1&(6 # WR# DQ\WKLQJ# LQ
WKDW#HQYLURQPHQW


>,(9#49403403:/#PRGLILHG@

9393404052)',6##,(&+(, ±#<#±


-51538
(/(&7520$*1(7,&#',6785%$1&(
DQ\# HOHFWURPDJQHWLF# SKHQRPHQRQ# WKDW# PD\# GHJUDGH# WKH# SHUIRUPDQFH# RI# D# GHYLFH/# HTXLSPHQW
RU#V\VWHP
127(## $Q# (/(&7520$*1(7,&#',6785%$1&( #PD\#EH#DQ# (/(&7520$*1(7,&#12,6( /#DQ#XQZDQWHG#VLJQDO#RU#D#FKDQJH#LQ
WKH#SURSDJDWLRQ#PHGLXP#LWVHOI1


>,(9#494034038/#PRGLILHG@

51539
+ (/(&7520$*1(7,& ,# (0,66,21
SKHQRPHQRQ#E\#ZKLFK#HOHFWURPDJQHWLF#HQHUJ\#HPDQDWHV#IURP#D#VRXUFH


>,(9#49403403;@

-5153:
(/(&7520$*1(7,&#(19,5210(17
WRWDOLW\#RI#HOHFWURPDJQHWLF#SKHQRPHQD#H[LVWLQJ#DW#D#JLYHQ#ORFDWLRQ
127(## ,Q# JHQHUDO/# WKH# (/(&7520$*1(7,&# (19,5210(17 # LV# WLPH# GHSHQGHQW# DQG# LWV# GHVFULSWLRQ# PD\# QHHG# D


VWDWLVWLFDO#DSSURDFK1

>,(9#494034034/#PRGLILHG@

5153;
(/(&7520$*1(7,&#12,6(

WLPH0YDU\LQJ# HOHFWURPDJQHWLF# SKHQRPHQRQ# DSSDUHQWO\# QRW# FRQYH\LQJ# LQIRUPDWLRQ# DQG# ZKLFK
PD\#EH#VXSHULPSRVHG#RQ#RU#FRPELQHG#ZLWK#D#ZDQWHG#VLJQDO
>,(9#494034035@

5153<
(/(&75267$7,&#',6&+$5*( #+(6',


D# WUDQVIHU# RI#HOHFWULF# FKDUJH# EHWZHHQ# ERGLHV# RI# GLIIHUHQW# HOHFWURVWDWLF# SRWHQWLDO# LQ# SUR[LPLW\# RU
WKURXJK#GLUHFW#FRQWDFW
>,(9#494034055@


51543
(66(17,$/#3(5)250$1&(# +RI#DQ# (48,30(17 #RU# 6<67(0 ,
SHUIRUPDQFH#FKDUDFWHULVWLFV#QHFHVVDU\#WR#PDLQWDLQ#WKH#UHVLGXDO#ULVN#ZLWKLQ#DFFHSWDEOH#OLPLWV
127( 6HH#DOVR#61534151

>,(&#9393404#6UG#HG1/ 5#GHILQLWLRQ#6163@


-51544
(;&/86,21#%$1'
IUHTXHQF\#EDQG#IRU#LQWHQWLRQDO#UHFHLYHUV#RI#5)#HOHFWURPDJQHWLF#HQHUJ\#WKDW#H[WHQGV#IURP#−8#(
WR#+8#(#RI#WKH#IUHTXHQF\/#RU#IUHTXHQF\#EDQG/#RI#UHFHSWLRQ#IRU#IUHTXHQFLHV#RI#UHFHSWLRQ#JUHDWHU
WKDQ# RU# HTXDO# WR# ;3#0+]# DQG# IURP# −43# (# WR# +43# (# RI# WKH# IUHTXHQF\/# RU# IUHTXHQF\# EDQG/# RI
UHFHSWLRQ#IRU#IUHTXHQFLHV#RI#UHFHSWLRQ#OHVV#WKDQ#;3#0+]


127( 2WKHU#GHILQLWLRQV#RI#WKLV#WHUP#DUH#VRPHWLPHV#XVHG#IRU#RWKHU#SXUSRVHV#LQ#QDWLRQDO#UDGLR#UHJXODWLRQV1

-51545
)81&7,21 #+RI#DQ# (48,30(17 #RU# 6<67(0 ,
FOLQLFDOO\#VLJQLILFDQW#IHDWXUH#WKDW#WKH# (48,30(17# RU# 6<67(0#LV#LQWHQGHG#WR#SURYLGH


51546
,(&#93934# 7(67#/(9(/
,0081,7<#7(67#/(9(/ #VSHFLILHG#LQ#691535#E\#WKLV#VWDQGDUG#RU#D#3DUWLFXODU#6WDQGDUG


BBBBBBBBBBB
5# ,Q#SUHSDUDWLRQ1

±#43#± 9393404052)',6##,(&+(,


-51547
,0081,7< #+WR#D#GLVWXUEDQFH,
DELOLW\# RI# DQ# (48,30(17# RU# 6<67(0# WR# SHUIRUP# ZLWKRXW# '(*5$'$7,21 # LQ# WKH# SUHVHQFH# RI# DQ
(/(&7520$*1(7,&#',6785%$1&(

>,(9#494034053/#PRGLILHG@


51548
,0081,7<#/(9(/
PD[LPXP# OHYHO# RI# D# JLYHQ# (/(&7520$*1(7,&# ',6785%$1&( # LQFLGHQW# RQ# D# SDUWLFXODU# GHYLFH/
HTXLSPHQW# RU# V\VWHP# IRU# ZKLFK# LW# UHPDLQV# FDSDEOH# RI# RSHUDWLQJ# DW# D# UHTXLUHG# GHJUHH# RI
SHUIRUPDQFH


>,(9#494036047@

-51549
,0081,7<#7(67#/(9(/
OHYHO#RI#D#WHVW#VLJQDO#XVHG#WR#VLPXODWH# DQ# (/(&7520$*1(7,&# ',6785%$1&( #ZKHQ# SHUIRUPLQJ# DQ
,0081,7<# WHVW


>,(9#494037074#PRGLILHG@

5154:
,1)250$7,21#7(&+12/2*<#(48,30(17 #+,7(,
HTXLSPHQW#GHVLJQHG#IRU#WKH#SXUSRVH#RI

D, UHFHLYLQJ#GDWD#IURP#DQ#H[WHUQDO#VRXUFH#+VXFK#DV#D#GDWD#LQSXW#OLQH#RU#YLD#D#NH\ERDUG,>
E, SHUIRUPLQJ# VRPH# SURFHVVLQJ# IXQFWLRQV# RQ# WKH# UHFHLYHG# GDWD# +VXFK# DV# FRPSXWDWLRQ/# GDWD
WUDQVIRUPDWLRQ#RU#UHFRUGLQJ/#ILOLQJ/#VRUWLQJ/#VWRUDJH/#WUDQVIHU#RI#GDWD,>
F, SURYLGLQJ# D# GDWD# RXWSXW# +HLWKHU# WR# RWKHU# HTXLSPHQW# RU# E\# WKH# UHSURGXFWLRQ# RI# GDWD# RU
LPDJHV,


127( 7KLV# GHILQLWLRQ# LQFOXGHV# HOHFWULFDO# RU# HOHFWURQLF# XQLWV# RU# V\VWHPV# WKDW# SUHGRPLQDQWO\# JHQHUDWH# D# PXOWLSOLFLW\
RI#SHULRGLF#ELQDU\#SXOVHG#HOHFWULFDO# RU#HOHFWURQLF# ZDYHIRUPV#DQG#DUH#GHVLJQHG#WR# SHUIRUP#GDWD#SURFHVVLQJ#IXQFWLRQV
VXFK# DV# ZRUG# SURFHVVLQJ/# HOHFWURQLF# FRPSXWDWLRQ/# GDWD# WUDQVIRUPDWLRQ/# UHFRUGLQJ/# ILOLQJ/# VRUWLQJ/# VWRUDJH/# UHWULHYDO
DQG#WUDQVIHU/#DQG#UHSURGXFWLRQ#RI#GDWD#DV#LPDJHV1

>,(9#494038037@


-5154;
/$5*(#(48,30(17 #RU# 6<67(0
(48,30(17# RU# 6<67(0 #WKDW#FDQQRW#ILW#ZLWKLQ#D#5#P#×#5#P#×#5/8#P#YROXPH/#H[FOXGLQJ#FDEOHV>#WKLV
LQFOXGHV#GLVWULEXWHG# 6<67(06


-5154<
/,)( 0 6833257,1*#(48,30(17 #RU# 6<67(0
(48,30(17# RU# 6<67(0 # WKDW# LQFOXGHV# DW# OHDVW# RQH# )81&7,21 # WKDW# LV# LQWHQGHG# WR# DFWLYHO\# NHHS
DOLYH# RU# UHVXVFLWDWH# 3$7,(176# DQG# WKH# IDLOXUH# RI# ZKLFK# WR# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI
69153514#M,#LV#OLNHO\#WR#OHDG#WR#VHULRXV#LQMXU\#RU#GHDWK#RI#D# 3$7,(17


-51553
/2:#92/7$*(
OLQH0WR0OLQH#RU#OLQH0WR0QHXWUDO#YROWDJH#WKDW#LV#OHVV#WKDQ#RU#HTXDO#WR#4#333#9#D1F1#RU#4#833#9#G1F1

-51554


0(',&$/#(/(&75,&$/#6<67(0 #+KHUHLQDIWHU#UHIHUUHG#WR#DV# 6<67(0 ,


FRPELQDWLRQ# RI# LWHPV# RI# HTXLSPHQW/# DW# OHDVW# RQH# RI# ZKLFK# PXVW# EH# 0(',&$/# (/(&75,&$/
(48,30(17 # DQG# LQWHUFRQQHFWHG# E\# )81&7,21$/# &211(&7,21 # RU# XVH# RI# D# 08/7,3/(# 3257$%/(
62&.(7 0 287/(7
127( (TXLSPHQW#ZKHQ#PHQWLRQHG#LQ#FRQQHFWLRQ#ZLWK#D# 6<67(0 /#VKRXOG#EH#WDNHQ#WR#LQFOXGH# (48,30(17 1


>,(&#939340404>#GHILQLWLRQ#51534@

9393404052)',6##,(&+(, ±#44#±


-51555
23(5$7,1*#)5(48(1&<
IXQGDPHQWDO# IUHTXHQF\# RI# D# VLJQDO/# HOHFWULFDO# RU# QRQ0HOHFWULFDO/# WKDW# LV# VHW# LQ# DQ# (48,30(17# RU
6<67(0 #LQWHQGHG#WR#FRQWURO#D#SK\VLRORJLFDO#SDUDPHWHU

-51556


3$7,(17 0 &283/('#(48,30(17 #RU# 6<67(0
(48,30(17# RU# 6<67(0 # WKDW# FRQWDLQV# DW# OHDVW# RQH# $33/,('# 3$57 # ZKHUHE\# FRQWDFW# ZLWK# WKH
3$7,(17 # SURYLGHV# D# VHQVLQJ# RU# WUHDWPHQW# SRLQW# QHFHVVDU\# IRU# WKH# QRUPDO# RSHUDWLRQ# RI# WKH
(48,30(17# RU# 6<67(0 # DQG# SURYLGHV# D# SDWK# IRU# HOHFWURPDJQHWLF# HQHUJ\/# ZKHWKHU# FRXSOHG
FRQGXFWLYHO\/#FDSDFLWLYHO\#RU#LQGXFWLYHO\#DQG#ZKHWKHU#LQWHQGHG#RU#XQLQWHQGHG


-51557
3+<6,2/2*,&$/#6,08/$7,21#)5(48(1&<
IXQGDPHQWDO# IUHTXHQF\# RI# D# VLJQDO/# HOHFWULFDO# RU# QRQ0HOHFWULFDO/# XVHG# WR# VLPXODWH# D
SK\VLRORJLFDO# SDUDPHWHU# VXFK# WKDW# WKH# (48,30(17# RU# 6<67(0# ZLOO# RSHUDWH# LQ# D# PDQQHU
FRQVLVWHQW#ZLWK#XVH#RQ#D# 3$7,(17


-51558
38%/,&#0$,16#1(7:25.
/2:#92/7$*( #HOHFWULFLW\#SRZHU#OLQHV#WR#ZKLFK#DOO#FDWHJRULHV#RI#FRQVXPHUV#KDYH#DFFHVV

-51559

5$',2#)5(48(1&< #+5),
IUHTXHQF\#LQ#WKH#SRUWLRQ#RI#WKH#HOHFWURPDJQHWLF#VSHFWUXP#WKDW#LV#EHWZHHQ# WKH# DXGLR0IUHTXHQF\
SRUWLRQ#DQG#WKH#LQIUDUHG#SRUWLRQ>#IUHTXHQF\#XVHIXO#IRU#UDGLR#WUDQVPLVVLRQ
127( 7KH#OLPLWV#DUH#JHQHUDOO\#DFFHSWHG#WR#EH#<#N+]#WR#6#333#*+]1

6# *HQHUDO#UHTXLUHPHQWV


61534## *HQHUDO#UHTXLUHPHQWV#IRU# (/(&7520$*1(7,&#&203$7,%,/,7<#RI# (48,30(17


DQG# 6<67(06

-6153414## ( /(&7520$*1(7,&#&203$7,%,/,7<


( 48,30(17# DQG# 6<67(06# VKDOO#QRW#HPLW# (/(&7520$*1(7,&#',6785%$1&(6 #WKDW#FRXOG#DIIHFW#UDGLR


VHUYLFHV/# RWKHU# HTXLSPHQW# RU# WKH# (66(17,$/# 3(5)250$1&( # RI# RWKHU# (48,30(17# DQG# 6<67(06 1
7KH# (66(17,$/# 3(5)250$1&(# RI# (48,30(17# DQG# 6<67(06# VKDOO# KDYH# DGHTXDWH# ,0081,7<# WR
(/(&7520$*1(7,&#',6785%$1&(6 1


&RPSOLDQFH#LV#FRQVLGHUHG#WR#H[LVW#LI#WKH#UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#DUH#PHW1

-6153415## ( 66(17,$/#3(5)250$1&(

7KH # (66(17,$/# 3(5)250$1&(# RI# (48,30(17# DQG# 6<67(06# VKDOO# EH# LGHQWLILHG# E\# D# ULVN#DQDO\VLV1
,I# WKLV# ULVN# DQDO\VLV# LV# QRW# SHUIRUPHG/# DOO# )81&7,216 # RI# WKH# (48,30(17# RU# 6<67(0# VKDOO# EH
FRQVLGHUHG# (66(17,$/#3(5)250$1&( # IRU#WKH#SXUSRVH#RI# ,0081,7< #WHVWLQJ#+VHH#69153514#M,,1
&RPSOLDQFH# LV# FKHFNHG# E\# LQVSHFWLRQ# RI# WKH# GRFXPHQWV# IRU# WKLV# ULVN# DQDO\VLV# RU/# LI# WKLV# ULVN


DQDO\VLV# LV# QRW# SHUIRUPHG/# E\# LQVSHFWLRQ# RI# WKH# GRFXPHQWV# WR# YHULI\# WKDW# DOO# )81&7,216 # RI# WKH
(48,30(17# RU# 6<67(0 #KDYH#EHHQ#WHVWHG#LQ#DFFRUGDQFH#ZLWK#6915351

6153416## 0 (',&$/#(/(&75,&$/#(48,30(17


0 (',&$/#(/(&75,&$/#(48,30(17 #VKDOO#PHHW#WKH#UHTXLUHPHQWV#RI#WKLV#VWDQGDUG1
&RPSOLDQFH#LV#FRQVLGHUHG#WR#H[LVW#LI#WKH#UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#DUH#PHW1

-6153417## 1RQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW


1RQ0PHGLFDO# HOHFWULFDO#HTXLSPHQW# WKDW# LV# VXSSOLHG# DV# SDUW# RI# D# 6<67(0# DQG# WKH# (0,66,216# DQG
,0081,7<# RI#ZKLFK # FDQ#EH#UHDVRQDEO\#H[SHFWHG#QRW#WR#DIIHFW#WKH# (66(17,$/#3(5)250$1&(# RI#WKH

±#45#± 9393404052)',6##,(&+(,


6<67(0# RU# LQFUHDVH# WKH # (0,66,216# RI# WKH # (48,30(17# LV# H[HPSW# IURP# WKH# (0&# WHVWLQJ
UHTXLUHPHQWV# RI# WKLV# VWDQGDUG/# SURYLGHG# WKH# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# FRPSOLHV# ZLWK
DSSOLFDEOH# LQWHUQDWLRQDO# (0&# VWDQGDUGV1# 7KH# GHWHUPLQDWLRQ# RI# UHDVRQDEOH# H[SHFWDWLRQ# QRW# WR
DIIHFW#WKH# (66(17,$/#3(5)250$1&(# RI#WKH# 6<67(0# VKDOO#EH#EDVHG#XSRQ#D#ULVN#DQDO\VLV1#7KLV#ULVN
DQDO\VLV#LV#QRW#UHTXLUHG#LI#WKH#QRQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW#VXSSOLHG#DV#SDUW#RI#D# 6<67(0# LV
WHVWHG#IRU#(0&#LQ#DFFRUGDQFH#ZLWK#WKLV#VWDQGDUG1


&RPSOLDQFH# LV# FKHFNHG# E\# LQVSHFWLRQ# RI# WKH# GRFXPHQWV# IRU# WKLV# ULVN# DQDO\VLV# DQG# RWKHU
DSSURSULDWH#GRFXPHQWV#RU#FHUWLILFDWHV#RU/#LI#WKLV#ULVN#DQDO\VLV#LV#QRW#SHUIRUPHG/#E\#LQVSHFWLRQ#RI
WKH# GRFXPHQWV# WR# YHULI\# WKDW# WKH# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# KDV# EHHQ# WHVWHG# LQ
DFFRUGDQFH#ZLWK#WKLV#VWDQGDUG1

9# ,GHQWLILFDWLRQ/#PDUNLQJ#DQG#GRFXPHQWV


9141534## 0DUNLQJ#RQ#WKH#RXWVLGH#RI# (48,30(17#RU# (48,30(17#SDUWV

-914153414## 0DUNLQJ#RQ#WKH#RXWVLGH#RI# (48,30(17#RU# (48,30(17#SDUWV#WKDW#LQFOXGH#5)


WUDQVPLWWHUV#RU#WKDW#DSSO\#5)#HOHFWURPDJQHWLF#HQHUJ\#IRU#GLDJQRVLV#RU#WUHDWPHQW
( 48,30(17# DQG# 6<67(06 # WKDW# LQFOXGH# 5)# WUDQVPLWWHUV# RU# WKDW# LQWHQWLRQDOO\# DSSO\# 5)


HOHFWURPDJQHWLF#HQHUJ\#IRU# GLDJQRVLV# RU# WUHDWPHQW# VKDOO# EH# ODEHOOHG# ZLWK# WKH# IROORZLQJ# V\PERO
IRU#QRQ0LRQL]LQJ#UDGLDWLRQ#>,(&#9374:08473@=

914153415## 0DUNLQJ# RQ# WKH# RXWVLGH# RI# (48,30(17# RU# (48,30(17# SDUWV# IRU# ZKLFK# WKH
FRQQHFWRU#WHVWLQJ#H[HPSWLRQ#VSHFLILHG#LQ#69153515#E,#6,#LV#XVHG
)RU# (48,30(17# DQG# 6<67(06 # IRU# ZKLFK# WKH# FRQQHFWRU# WHVWLQJ# H[HPSWLRQ# VSHFLILHG# LQ


69153515#E,#6,# LV# XVHG/# WKH# IROORZLQJ# V\PERO# IRU# (6'# VHQVLWLYLW\# VKDOO# EH# DSSOLHG# DGMDFHQW# WR
HDFK#FRQQHFWRU#IRU#ZKLFK#WKH#WHVWLQJ#H[HPSWLRQ#LV#XVHG#>,(&#9374:08467@=


914153416## 0DUNLQJ# RQ# WKH# RXWVLGH# RI# (48,30(17# DQG# 6<67(06 # WKDW# DUH# VSHFLILHG# IRU# XVH
RQO\#LQ#D#VKLHOGHG#ORFDWLRQ


( 48,30(17# DQG# 6<67(06 # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# VKDOO# EH# ODEHOOHG# ZLWK# D
ZDUQLQJ# WKDW# WKH\# VKRXOG# EH# XVHG# RQO\# LQ# WKH# VSHFLILHG# W\SH# RI# VKLHOGHG# ORFDWLRQ# +VHH
91;161534#F,,1
&RPSOLDQFH#LV#FKHFNHG#E\#LQVSHFWLRQ1

91;1534## $&&203$1<,1*#'2&80(176


91;151534## ,QVWUXFWLRQV#IRU#XVH

D, 5HTXLUHPHQWV#DSSOLFDEOH#WR#DOO# (48,30(17# DQG# 6<67(06


,QVWUXFWLRQV#IRU#XVH#VKDOO#LQFOXGH#WKH#IROORZLQJ=
4, D# VWDWHPHQW# WKDW# 0(',&$/# (/(&75,&$/# (48,30(17# QHHGV# VSHFLDO# SUHFDXWLRQV# UHJDUGLQJ


(0&#DQG# QHHGV# WR# EH# LQVWDOOHG# DQG# SXW# LQWR# VHUYLFH# DFFRUGLQJ# WR# WKH# (0&# LQIRUPDWLRQ
SURYLGHG#LQ#WKH #$&&203$1<,1*#'2&80(176 >
5, D# VWDWHPHQW# WKDW# SRUWDEOH# DQG# PRELOH# 5)# FRPPXQLFDWLRQV# HTXLSPHQW# FDQ# DIIHFW
0(',&$/#(/(&75,&$/#(48,30(17 1


9393404052)',6##,(&+(, ±#46#±


E, 5HTXLUHPHQWV# DSSOLFDEOH# WR# (48,30(17# DQG# 6<67(06 # IRU# ZKLFK# WKH# FRQQHFWRU# WHVWLQJ
H[HPSWLRQ#VSHFLILHG#LQ#69153515#E,#6,#LV#XVHG
)RU# (48,30(17# DQG# 6<67(06 # IRU# ZKLFK# WKH# FRQQHFWRU# WHVWLQJ# H[HPSWLRQ# VSHFLILHG# LQ
69153515#E,#6,#LV#XVHG/#WKH#,QVWUXFWLRQV#IRU#XVH#VKDOO#LQFOXGH#WKH#IROORZLQJ=
4, D#UHSURGXFWLRQ#RI#WKH#(6'#ZDUQLQJ#V\PERO#+,(&#9374:08467/#DV#VKRZQ#LQ#914153415,>


5, D# ZDUQLQJ# WKDW# SLQV# RI# FRQQHFWRUV# LGHQWLILHG# ZLWK# WKH# (6'# ZDUQLQJ# V\PERO# VKRXOG# QRW
EH#WRXFKHG#DQG#WKDW#FRQQHFWLRQV#VKRXOG#QRW#EH#PDGH# WR#WKHVH#FRQQHFWRUV# XQOHVV# (6'
SUHFDXWLRQDU\#SURFHGXUHV#DUH#XVHG>
-6, D#VSHFLILFDWLRQ#RI#WKH#(6'#SUHFDXWLRQDU\#SURFHGXUHV>
-7, D# UHFRPPHQGDWLRQ# WKDW# DOO# VWDII# LQYROYHG# UHFHLYH# DQ# H[SODQDWLRQ# RI# WKH# (6'# ZDUQLQJ


V\PERO#DQG#WUDLQLQJ#LQ#(6'#SUHFDXWLRQDU\#SURFHGXUHV>
-8, D#VSHFLILFDWLRQ#RI#WKH#PLQLPXP#FRQWHQWV#RI#(6'#SUHFDXWLRQDU\#SURFHGXUH#WUDLQLQJ1
F, 0LQLPXP#DPSOLWXGH#RU#YDOXH#RI# 3$7,(17 #SK\VLRORJLFDO#VLJQDO
)RU# (48,30(17# DQG# 6<67(06 # ZLWKRXW# D# PDQXDO# VHQVLWLYLW\# DGMXVWPHQW# DQG# IRU# ZKLFK# WKH
PDQXIDFWXUHU# VSHFLILHV# D# PLQLPXP# DPSOLWXGH# RU# YDOXH# RI# WKH# 3$7,(17 # SK\VLRORJLFDO# VLJQDO
+VHH#69153514#J,/#ILUVW#GDVK,/#WKH#,QVWUXFWLRQV#IRU#XVH#VKDOO#LQFOXGH#WKH#IROORZLQJ=


4, WKH#PLQLPXP#DPSOLWXGH#RU#YDOXH#RI# 3$7,(17 #SK\VLRORJLFDO#VLJQDO>
5, D#ZDUQLQJ#WKDW#RSHUDWLRQ#RI#WKH# (48,30(17# RU# 6<67(0# EHORZ#WKLV#DPSOLWXGH#RU#YDOXH#PD\
FDXVH#LQDFFXUDWH#UHVXOWV1
&RPSOLDQFH#LV#FKHFNHG#E\#LQVSHFWLRQ1

91;161534## 7HFKQLFDO#GHVFULSWLRQ

D, 5HTXLUHPHQWV#DSSOLFDEOH#WR#DOO# (48,30(17# DQG# 6<67(06


)RU# DOO# (48,30(17# DQG# 6<67(06 /# WKH# $&&203$1<,1*# '2&80(176 #VKDOO# LQFOXGH#WKH#IROORZLQJ
LQIRUPDWLRQ=


-4, $# OLVW# RI# DOO# FDEOHV# DQG# PD[LPXP# OHQJWKV# RI# FDEOHV# +LI# DSSOLFDEOH,/# WUDQVGXFHUV# DQG
RWKHU# $&&(6625,(6 # ZLWK# ZKLFK# WKH# PDQXIDFWXUHU# RI# WKH# (48,30(17# RU# 6<67(0# FODLPV
FRPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# 691534# DQG# 6915351# $ &&(6625,(6 # WKDW# GR# QRW
DIIHFW# FRPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# WKHVH# VXEFODXVHV# QHHG# QRW# EH# OLVWHG1
$ &&(6625,(6 /# WUDQVGXFHUV# DQG# FDEOHV# PD\# EH# VSHFLILHG# HLWKHU# JHQHULFDOO\# +H1J1


VKLHOGHG#VHULDO#FDEOH/#ORDG#LPSHGDQFH,#RU#VSHFLILFDOO\#+H1J1#E\#PDQXIDFWXUHU#DQG#PRGHO
RU#SDUW#QXPEHU,1
127( 7UDQVGXFHUV# DQG# FDEOHV# VROG# E\# WKH# PDQXIDFWXUHU# RI# WKH# (48,30(17# RU# 6<67(0 # DV# UHSODFHPHQW# SDUWV# IRU
LQWHUQDO#FRPSRQHQWV#QHHG#QRW#EH#OLVWHG1


-5, $# ZDUQLQJ# WKDW# WKH# XVH# RI# $&&(6625,(6 /# WUDQVGXFHUV# DQG# FDEOHV# RWKHU# WKDQ# WKRVH
VSHFLILHG/#ZLWK#WKH#H[FHSWLRQ#RI#WUDQVGXFHUV#DQG#FDEOHV#VROG#E\#WKH#PDQXIDFWXUHU#RI#WKH
(48,30(17# RU# 6<67(0 # DV# UHSODFHPHQW# SDUWV# IRU# LQWHUQDO# FRPSRQHQWV/# PD\# UHVXOW# LQ
LQFUHDVHG# (0,66,216 #RU#GHFUHDVHG# ,0081,7< #RI#WKH# (48,30(17# RU# 6<67(01
-6, 7DEOH#534/#ZLWK#WKH#PRGLILFDWLRQV#VSHFLILHG#EHORZ1 6/ #7#7KH#IORZFKDUW#LQ#)LJXUH#534#LV#WKH
UHTXLUHPHQW# LQ# VWHS0E\0VWHS# JUDSKLFDO# IRUP# IRU# FRPSOHWLRQ# RI# 7DEOH# 534# IRU# &,635#44
(48,30(17# DQG# 6<67(06 1#7KH#IORZFKDUW#LQ#)LJXUH#535#LV#WKH#UHTXLUHPHQW#LQ#VWHS0E\0VWHS


JUDSKLFDO#IRUP#IRU#FRPSOHWLRQ#RI#7DEOH#534#IRU#&,635#47#DQG#&,635#48# (48,30(17 1
±# )RU# &,635# 44# (48,30(17# DQG# 6<67(06 /# ³> (48,30(17# RU# 6<67(0@´# VKDOO# EH# UHSODFHG
ZLWK#WKH# 02'(/#25#7<3(#5()(5(1&( #RI#WKH# (48,30(17# RU# 6<67(01
±# )RU# &,635# 47# DQG# &,635# 48# (48,30(17 /# ³> (48,30(17 @´# VKDOO# EH# UHSODFHG# ZLWK# WKH
02'(/#25#7<3(#5()(5(1&(# RI#WKH# (48,30(17 1


±# )RU# &,635# 44# *URXS# 4# (48,30(17 # DQG# 6<67(06 /# URZV# 8/# 44# DQG# 45# VKDOO# EH
GHOHWHG1

BBBBBBBBBBB


6 6HH#$QQH[#%%%#IRU#H[DPSOHV1#7KHVH#PRGLILFDWLRQV#VKRXOG#EH#SHUIRUPHG#LQ#WKH#RUGHU#LQ#ZKLFK#WKH\#DSSHDU1
7 5RZ#QXPEHUV#UHIHU#WR#WKRVH#LQ#7DEOH#534#EHIRUH#PRGLILFDWLRQV#DUH#PDGH1

±#47#± 9393404052)',6##,(&+(,


±# )RU# &,635# 44# *URXS# 5# (48,30(17 # DQG# 6<67(06 /# URZV# 7/# 44# DQG# 45# VKDOO# EH
GHOHWHG1
±# )RU# (48,30(17 # WKDW# FRPSOLHV# ZLWK# &,635# 4704/# URZV# 7# WKURXJK# 9# DQG# URZ# 45# VKDOO
EH#GHOHWHG
±# )RU# (48,30(17 #WKDW#FRPSOLHV#ZLWK#&,635#48/#URZV#7#WKURXJK#9#DQG#URZ#44#VKDOO#EH
GHOHWHG1


±# )RU# &,635# 44# (48,30(17 # DQG# 6<67(06 # WKDW# FRPSO\# ZLWK# &ODVV# $/# ³>$# RU# %@´# LQ
FROXPQ# 5# RI# URZ# 9# VKDOO# EH# UHSODFHG# ZLWK# ³$1´# )RU# &,635#44# (48,30(17 # DQG
6<67(06 #WKDW#FRPSO\#ZLWK#&ODVV#%/#³>$#RU#%@´#VKDOO#EH#UHSODFHG#ZLWK#³%1´

±# )RU# (48,30(17 #DQG# 6<67(06 #WKDW#FRPSO\#ZLWK#,(&#943330605/#³>&ODVV#$/#%/#&/#'/#RU


1RW# DSSOLFDEOH@´# LQ# FROXPQ# 5# RI# URZ# :# VKDOO# EH# UHSODFHG# ZLWK# WKH# FODVV# RI# WKH


(48,30(17 # RU# 6<67(0 # DFFRUGLQJ# WR# ,(&# 9433306051# )RU# (48,30(17 # DQG# 6<67(06
WKDW#FRPSO\# ZLWK# ,(&#943330606/#³>&RPSOLHV# RU# 1RW# DSSOLFDEOH@´# LQ# FROXPQ# 5# RI# URZ
;# VKDOO# EH# UHSODFHG# ZLWK# ³&RPSOLHV1´# )RU# (48,30(17 # DQG# 6<67(06 # IRU# ZKLFK# ,(&
943330605# DQG# ,(&# 943330606# DUH# QRW# DSSOLFDEOH/# ³>&ODVV# $/# %/# &/# '/# RU# 1RW
DSSOLFDEOH@´# DQG# ³>&RPSOLHV# RU# 1RW# DSSOLFDEOH@´# VKDOO# HDFK# EH# UHSODFHG# ZLWK# ³1RW
DSSOLFDEOH1´


±# )RU# &,635# 44# (48,30(17 # DQG# 6<67(06 /# FROXPQ# 6# RI# URZV# 9/# :# DQG# ;# VKDOO# EH
PHUJHG# LQWR# RQH# FHOO1# )RU# &,635# 44# (48,30(17 # DQG# 6<67(06 # WKDW# FRPSO\# ZLWK
&ODVV#%# DQG# ZLWK#,(&# 943330605# DQG#,(&# 943330606/# WKH#WH[W# LQ#FROXPQ# 6# RI#URZ# <
VKDOO# EH# PRYHG# LQWR# WKH# PHUJHG# FHOO1# )RU# &,635# 44# (48,30(17 # DQG# 6<67(06 # WKDW
FRPSO\# ZLWK# &ODVV# $# RU# IRU# ZKLFK# ,(&# 943330605# DQG# ,(&#943330606# DUH# QRW

DSSOLFDEOH/#WKH#WH[W#LQ#FROXPQ#6#RI#URZ#43#VKDOO#EH#PRYHG#LQWR#WKH#PHUJHG#FHOO1
±# )RU#&,635#47#RU#&,635#48# (48,30(17 /#FROXPQ#6#RI#URZV# :# DQG# ;#VKDOO#EH#PHUJHG
LQWR# RQH# FHOO1# )RU# &,635# 47# RU# &,635# 48# (48,30(17 # WKDW# FRPSO\# ZLWK
,(&#943330605# DQG# ZLWK# ,(&# 943330606/# WKH# WH[W# LQ# FROXPQ# 6# RI# URZ# <# VKDOO# EH
PRYHG# LQWR# WKH# PHUJHG# FHOO1# )RU# &,635# 47# RU# &,635# 48# (48,30(17 # IRU# ZKLFK
,(&#943330605# DQG# ,(&# 943330606# DUH# QRW# DSSOLFDEOH/# WKH# WH[W# LQ# FROXPQ# 6# RI# URZ


43#VKDOO#EH#PRYHG#LQWR#WKH#PHUJHG#FHOO1
±# )RU# (48,30(17 # DQG# 6<67(06 # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# DQG# IRU
ZKLFK# WKH# HOHFWURPDJQHWLF# UDGLDWLRQ# GLVWXUEDQFH# DOORZDQFH# RU# WKH# PDLQV# WHUPLQDO
GLVWXUEDQFH# YROWDJH# DOORZDQFH# LQ# 69153414# D,# 7,# LV# XVHG/# WKH# WH[W# VSHFLILHG# E\
91;161534#F,#5,#VKDOO#EH#DGGHG1


±# 5RZV#<#DQG#43#VKDOO#EH#GHOHWHG1
±# 7KH#URZ#QXPEHUV#VKDOO#EH#GHOHWHG1
-7, $# ZDUQLQJ# WKDW# WKH# (48,30(17# RU# 6<67(0# VKRXOG# QRW# EH# XVHG# DGMDFHQW# WR# RU# VWDFNHG
ZLWK# RWKHU# HTXLSPHQW# DQG# WKDW# LI# DGMDFHQW# RU# VWDFNHG# XVH# LV# QHFHVVDU\/# WKH# (48,30(17


RU# 6<67(0 #VKRXOG#EH#REVHUYHG#WR#YHULI\#QRUPDO#RSHUDWLRQ#LQ#WKH#FRQILJXUDWLRQ#LQ#ZKLFK#LW


ZLOO#EH#XVHG1
127( 7KH# PDQXIDFWXUHU# RI# WKH# (48,30(17# RU# 6<67(0 # PD\# SURYLGH# D# GHVFULSWLRQ# RU# OLVW# RI# HTXLSPHQW# ZLWK# ZKLFK
WKH# (48,30(17# RU# 6<67(0 # KDV# EHHQ# WHVWHG# LQ# D# VWDFNHG# RU# DGMDFHQW# FRQILJXUDWLRQ# DQG# ZLWK# ZKLFK# VWDFNHG# RU
DGMDFHQW#XVH#LV#SHUPLWWHG1

-8, $# MXVWLILFDWLRQ# IRU# HDFK# &203/,$1&(# /(9(/ # WKDW# LV# ORZHU# WKDQ# WKH# ,(&# 93934 # 7(67# /(9(/
IRU# WKDW# ,0081,7< # WHVW1# 7KHVH# MXVWLILFDWLRQV# VKDOO# EH# EDVHG# RQO\# RQ# SK\VLFDO/


WHFKQRORJLFDO# RU# SK\VLRORJLFDO# OLPLWDWLRQV# WKDW# SUHYHQW# FRPSOLDQFH# DW# WKH# ,(&# 93934
7(67#/(9(/ 1

-9, 7DEOH# 535/# FRPSOHWHG# DV# VSHFLILHG# EHORZ1 8# 7KH# IORZFKDUW# LQ# )LJXUH# 536# LV# WKH
UHTXLUHPHQW#LQ#VWHS0E\0VWHS#JUDSKLFDO#IRUP#IRU#FRPSOHWLRQ#RI#7DEOH#5351
±# ³> (48,30(17 # RU# 6<67(0@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# 02'(/# 25# 7<3(# 5()(5(1&( # RI


WKH# (48,30(17 #RU# 6<67(01


127( 7KHUH#DUH#IRXU#SODFHV#LQ#7DEOH#535#ZKHUH#³> (48,30(17# RU# 6<67(0 @´#PXVW#EH#UHSODFHG1

-± &ROXPQ# 6# RI# 7DEOH# 535# VKDOO# EH# ILOOHG# LQ# ZLWK# WKH# ,0081,7<# &203/,$1&(# /(9(/# IRU
HDFK# WHVW# LQ# DFFRUGDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# 91;161534# DQG# 6915351# ,I# D


BBBBBBBBBBB
8 6HH#$QQH[#%%%#IRU#DQ#H[DPSOH1

9393404052)',6##,(&+(, ±#48#±


&203/,$1&(#/(9(/# ORZHU#RU#KLJKHU#WKDQ#WKH#,(&#93934# 7(67#/(9(/# LV#FODLPHG/#LW#VKDOO
EH# RQH# RI# WKH# OHYHOV# OLVWHG# LQ# WKH# UHIHUHQFHG# EDVLF# (0&# ,0081,7< # VWDQGDUG# XQOHVV
WKH# &203/,$1&(# /(9(/# LV#RXWVLGH#WKH#UDQJH#RI# OHYHOV# OLVWHG1#,I# WKH# &203/,$1&(# /(9(/
LV#RXWVLGH#WKH#UDQJH#RI#OHYHOV#OLVWHG#LQ#WKH#UHIHUHQFHG#EDVLF#(0&# ,0081,7< #VWDQGDUG/
WKH# DFWXDO# ,0081,7<# /(9(/# VKDOO# EH# VWDWHG/# URXQGHG# WR# RQH# VLJQLILFDQW# GLJLW1# ,I
DFFRUGLQJ#WR# 691535# RU# WKH#VFRSH# RI#WKH# (0&#EDVLF#VWDQGDUG# D# WHVW# GRHV# QRW# DSSO\
WR# WKH# (48,30(17 # RU# 6<67(0/# RU# LW# LV# QRW# SRVVLEOH# WR# SHUIRUP# WKH# WHVW# RQ# WKH


(48,30(17 #RU# 6<67(0 /#FROXPQV#6#DQG#7#RI#7DEOH#535#VKDOO#VWDWH#WKDW#WKH#WHVW#LV# QRW
DSSOLFDEOH1
-± )RU# WKH# HOHFWURVWDWLF# GLVFKDUJH# +(6',# ,0081,7< # WHVW# +,(&#943330705,/# WKH# HOHFWULFDO
IDVW# WUDQVLHQW2EXUVW# ,0081,7< # WHVW# +,(&#943330707,/# WKH# VXUJH# ,0081,7< # WHVW
+,(&#943330708,/# WKH# YROWDJH# GLSV/# VKRUW# LQWHUUXSWLRQV# DQG# YROWDJH# YDULDWLRQV


,0081,7< # WHVW# +,(&#9433307044,# DQG# WKH# SRZHU# IUHTXHQF\# PDJQHWLF# ILHOGV# ,0081,7<
WHVW#+,(&#94333070;,=
•# ,I# D# &203/,$1&(# /(9(/ # LV# ORZHU# WKDQ# DQ# ,0081,7<# 7(67# /(9(/ # VSHFLILHG# LQ
69153515/# 69153517/# 69153518/# 6915351:/# RU# 6915351;14/# WKH# WH[W# LQ# FROXPQ# 7# LQ
WKH#FRUUHVSRQGLQJ#URZ#RI#7DEOH#535#VKDOO#EH#UHSODFHG#ZLWK# D# GHVFULSWLRQ#RI# WKH
DFWLRQV# WKH# FXVWRPHU# RU# XVHU# PXVW# WDNH# WR# UHGXFH# HQYLURQPHQWDO# OHYHOV# RI# WKH


',6785%$1&( #VR#WKDW#WKH\#DUH#OHVV#WKDQ#RU#HTXDO#WR#WKH# &203/,$1&(#/(9(/ #OLVWHG
LQ#FROXPQ#61
•# ,I# D# &203/,$1&(# /(9(/ # LV# KLJKHU# WKDQ# DQ# ,0081,7<# 7(67# /(9(/ # VSHFLILHG# LQ
69153515/# 69153517/# 69153518/# 6915351:# RU# 6915351;14/# WKH# WH[W# LQ# FROXPQ# 7# LQ
WKH#FRUUHVSRQGLQJ# URZ# RI# 7DEOH# 535# PD\# EH# UHSODFHG# ZLWK# D# GHVFULSWLRQ# RI# WKH

HQYLURQPHQW#IRU#ZKLFK#WKH# (48,30(17# RU# 6<67(0#LV#VXLWDEOH1
-E, 5HTXLUHPHQWV# DSSOLFDEOH# WR# (48,30(17# DQG# 6<67(06 # RWKHU# WKDQ# WKRVH# VSHFLILHG# IRU# XVH
RQO\#LQ#D#VKLHOGHG#ORFDWLRQ
)RU# (48,30(17# DQG# 6<67(06 #RWKHU#WKDQ#WKRVH#VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ/
WKH# $&&203$1<,1*#'2&80(176 #VKDOO#LQFOXGH#WKH#IROORZLQJ#LQIRUPDWLRQ=


7KH#DSSOLFDEOH#WDEOHV/#536#DQG#538#RU#537#DQG#5391#7DEOHV#536#DQG#538#VKDOO#EH#XVHG#IRU
/,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 1# 7DEOHV# 537# DQG# 539# VKDOO# EH# XVHG# IRU
(48,30(17# DQG# 6<67(06 # WKDW# DUH# QRW# /,)( 0 6833257,1* 1# 7KH# WDEOHV# VKDOO# EH# FRPSOHWHG# IRU
WKH# FRQGXFWHG# DQG# UDGLDWHG# 5)# ,0081,7<# WHVWV# DV# VSHFLILHG# EHORZ1 9# 7KH# IORZFKDUW# LQ
)LJXUH#537#LV#WKH#UHTXLUHPHQW# LQ#VWHS0E\0VWHS# JUDSKLFDO#IRUP#IRU#FRPSOHWLRQ# RI#7DEOHV# 536


DQG#538#DQG#WKH#IORZFKDUW#LQ#)LJXUH#538#LV#WKH#UHTXLUHPHQW# LQ#VWHS0E\0VWHS#JUDSKLFDO#IRUP
IRU#FRPSOHWLRQ#RI#7DEOHV#537#DQG#5391
4, ³> (48,30(17# RU# 6<67(0 @´# VKDOO# EH# UHSODFHG# ZLWK# WKH# 02'(/# 25# 7<3(# 5()(5(1&( # RI# WKH
(48,30(17# RU# 6<67(0 1
127(# 7KHUH#DUH#VL[# SODFHV#LQ#7DEOHV#536# DQG#537#DQG#IRXU#SODFHV#LQ#7DEOHV#538# DQG# 539# ZKHUH# ³> (48,30(17# RU


6<67(0 @´#PXVW#EH#UHSODFHG1

5, &ROXPQ# 6# RI# 7DEOH# 536# RU# 537/# DV# DSSOLFDEOH/# VKDOO# EH# ILOOHG# LQ# ZLWK# WKH# ,0081,7<
&203/,$1&(# /(9(/ # LQ# DFFRUGDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# 91;161534/# DQG# RI# 6915351# ,I
D# &203/,$1&(# /(9(/ #ORZHU#RU#KLJKHU#WKDQ#WKH#,(&#93934# 7(67# /(9(/ #LV#FODLPHG/# LW#VKDOO
EH# RQH# RI# WKH# OHYHOV# OLVWHG# LQ# WKH# UHIHUHQFHG# EDVLF# (0&# ,0081,7< # VWDQGDUG# XQOHVV# WKH
&203/,$1&(# /(9(/ # LV# RXWVLGH# WKH# UDQJH# RI# OHYHOV# OLVWHG1# ,I# WKH# &203/,$1&(# /(9(/ # LV
RXWVLGH# WKH# UDQJH# RI# OHYHOV# OLVWHG# LQ# WKH# UHIHUHQFHG# EDVLF# (0&# ,0081,7< # VWDQGDUG/# WKH


DFWXDO# ,0081,7<#/(9(/ #VKDOO#EH#VWDWHG/#URXQGHG#WR#RQH#VLJQLILFDQW#GLJLW1


6, 7KH# H[SUHVVLRQV# LQ# VTXDUH# EUDFNHWV# +># @,# WKDW# FRQWDLQ# 9 4 /# 9 5 # DQG# ( 4 # LQ# FROXPQ# 7# RI
7DEOH#536# RU# 537/# DV# DSSOLFDEOH/# DQG# LQ# 7DEOH# 538# RU# 539/# DV# DSSOLFDEOH/# VKDOO# EH
FDOFXODWHG/#URXQGHG#WR#WZR#VLJQLILFDQW#GLJLWV/#DQG#WKH#UHVXOWV#VXEVWLWXWHG#LQ#SODFH#RI#WKH
FRUUHVSRQGLQJ# H[SUHVVLRQV1# 9 4 # DQG# 9 5 # DUH# WKH# &203/,$1&(# /(9(/6 # IRU# WKH


,(&#943330709#WHVW#DQG#( 4 #LV#WKH# &203/,$1&(# /(9(/ #IRU#WKH#,(&#943330706#WHVW1#9 4 #DQG


9 5 # DUH# LQ# 9#DQG#( 4 # LV#LQ # 92P1#7KH# YDOXH#RI#9 4 # VKDOO#DOVR#EH#VXEVWLWXWHG#IRU#³>9 4 @´#LQ# WKH
WDEOH#IRRWQRWH#LQ#7DEOH#536#RU#537/#DV#DSSOLFDEOH1


BBBBBBBBBBB
9# 6HH#$QQH[#%%%#IRU#H[DPSOHV1

±#49#± 9393404052)',6##,(&+(,


7, 7DEOH# 538# RU# 539/# DV# DSSOLFDEOH/# VKDOO# EH# FRPSOHWHG# E\# FDOFXODWLQJ# WKH# GLVWDQFH
FRUUHVSRQGLQJ#WR#HDFK#HQWU\#LQ#FROXPQV#5#WKURXJK#8#LQ#7DEOH#538#RU#FROXPQV#5#WKURXJK
7# LQ#7DEOH#539/# DV# DSSOLFDEOH/#XVLQJ#WKH# HTXDWLRQ# LQ# WKDW#FROXPQ# DQG#WKH# RXWSXW# SRZHU
WKDW#DSSHDUV#LQ#FROXPQ#4#RI#WKDW#URZ1#7KH#FDOFXODWHG#GLVWDQFHV#VKDOO#EH#URXQGHG#WR#WZR
VLJQLILFDQW#GLJLWV#DQG#HQWHUHG#LQ#7DEOH#538#RU#539/#DV#DSSOLFDEOH1
F, 5HTXLUHPHQWV# DSSOLFDEOH# WR# (48,30(17# DQG# 6<67(06 # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG


ORFDWLRQ
)RU# (48,30(17# DQG# 6<67(06 # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ/# WKH
$&&203$1<,1*#'2&80(176 #VKDOO#LQFOXGH#WKH#IROORZLQJ#LQIRUPDWLRQ=

4, $# ZDUQLQJ# WKDW# WKH# (48,30(17# RU# 6<67(0# VKRXOG# EH# XVHG# RQO\# LQ# WKH# VSHFLILHG# W\SH# RI
VKLHOGHG#ORFDWLRQ1


-5, ,I# WKH# HOHFWURPDJQHWLF# UDGLDWLRQ# GLVWXUEDQFH# DOORZDQFH# RU# WKH# PDLQV# WHUPLQDO
GLVWXUEDQFH#YROWDJH#DOORZDQFH#LQ#69153414#D,#7,#LV#XVHG=
±# WKH# IROORZLQJ# WH[W/# DGGHG# WR# FROXPQ# 5# RI# WKH# &,635# URZ# RI# 7DEOH# 534/# DIWHU# RU
EHORZ#WKH#&,635#FODVV=
+7KH#> (48,30(17 #RU# 6<67(0@#LQ#FRPELQDWLRQ#ZLWK#WKH#VKLHOGHG#ORFDWLRQ,


ZKHUH# ³> (48,30(17 # RU# 6<67(0@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# 02'(/# 25# 7<3(
5()(5(1&( #RI#WKH# (48,30(17 #RU# 6<67(0 >

±# WKH#IROORZLQJ# WH[W/#DSSHQGHG#WR# WKH# EHJLQQLQJ# RI# WKH# WH[W# LQ# FROXPQ# 6# RI# 7DEOH#534
LQ#WKH#PHUJHG#FHOO#RI#WKH#&,635#44/#,(&#943330605#DQG#,(&#943330606#URZV=

7KH# > (48,30(17 # RU# 6<67(0@# PXVW# EH# XVHG# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# ZLWK# D
PLQLPXP#5)#VKLHOGLQJ#HIIHFWLYHQHVV#DQG/#IRU# HDFK#FDEOH# WKDW# H[LWV# WKH# VKLHOGHG
ORFDWLRQ/# D# PLQLPXP# 5)# ILOWHU# DWWHQXDWLRQ# RI# >VKLHOGLQJ# HIIHFWLYHQHVV# 2# ILOWHU
DWWHQXDWLRQ#VSHFLILFDWLRQ@1
ZKHUH# ³> (48,30(17 # RU# 6<67(0@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# 02'(/# 25# 7<3(
5()(5(1&( # RI# WKH# (48,30(17 # RU# 6<67(0# DQG# ³>VKLHOGLQJ# HIIHFWLYHQHVV# 2# ILOWHU


DWWHQXDWLRQ# VSHFLILFDWLRQ@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# VSHFLILFDWLRQ# IRU# PLQLPXP# 5)
VKLHOGLQJ#HIIHFWLYHQHVV#DQG#5)#ILOWHU#DWWHQXDWLRQ1 :#7KH#VSHFLILFDWLRQ#IRU#PLQLPXP#5)
VKLHOGLQJ# HIIHFWLYHQHVV# DQG# 5)# ILOWHU# DWWHQXDWLRQ# VKDOO# PHHW# WKH# IROORZLQJ
UHTXLUHPHQWV=
•# WKH# VSHFLILHG# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# 5)# ILOWHU# DWWHQXDWLRQ# VKDOO# EH


H[SUHVVHG# LQ# G%/# VKDOO# EH# URXQGHG# WR# WKH# QHDUHVW# LQWHJHU# DQG# VKDOO# EH# DW# OHDVW
53#G%>
•# WKH# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# 5)# ILOWHU# DWWHQXDWLRQ# VSHFLILFDWLRQ# VKDOO
LQFOXGH#WKH#IUHTXHQF\#UDQJH#RYHU#ZKLFK#WKH#5)#VKLHOGLQJ#HIIHFWLYHQHVV#DQG#5)
ILOWHU# DWWHQXDWLRQ# DSSO\/# DQG# WKLV# IUHTXHQF\# UDQJH# VKDOO# EH# DW# OHDVW# RQH# GHFDGH


LQ#ZLGWK>
•# WKH#VSHFLILHG#YDOXH+V,#IRU#PLQLPXP#5)#ILOWHU#DWWHQXDWLRQ#VKDOO#EH#LGHQWLFDO#WR#WKH
VSHFLILHG# YDOXH+V,# IRU# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# LQ# HDFK# IUHTXHQF\
UDQJH#IRU#ZKLFK#WKH\#DUH#VSHFLILHG>
•# LQ#IUHTXHQF\#UDQJHV#IRU#ZKLFK#WKH#PLQLPXP#5)#VKLHOGLQJ#HIIHFWLYHQHVV# DQG#5)
ILOWHU# DWWHQXDWLRQ# DUH# QRW# VSHFLILHG# RU# DUH# VSHFLILHG# WR# EH# OHVV# WKDQ# 53# G%/# WKH
5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# 5)# ILOWHU# DWWHQXDWLRQ# VKDOO# EH# DVVXPHG# WR# EH


3#G%#IRU#WKH#SXUSRVH#RI#WKLV#VWDQGDUG>
±# WKH#IROORZLQJ#WH[W/#DGGHG#WR#UHSODFH# ³7KH#> (48,30(17 #RU# 6<67(0@# LV#VXLWDEOH´#LQ# WKH
WH[W# LQ# FROXPQ# 6# RI# 7DEOH#534# LQ# WKH# PHUJHG# FHOO# RI# WKH# &,635# 44/# ,(&# 943330605
DQG#,(&#943330606#URZV=


7KH# > (48,30(17 # RU# 6<67(0@/# ZKHQ# LQVWDOOHG# LQ# VXFK# D# VKLHOGHG# ORFDWLRQ/# LV
VXLWDEOH
ZKHUH# ³> (48,30(17 # RU# 6<67(0@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# 02'(/# 25# 7<3(
5()(5(1&( #RI#WKH# (48,30(17 #RU# 6<67(0 >


BBBBBBBBBBB
:# 7KLV#VSHFLILFDWLRQ#LV#DOVR#XVHG#LQ#7DEOHV#53:#DQG#53;#+VHH#91;161534#F,#7,,1

9393404052)',6##,(&+(, ±#4:#±


±# WKH#IROORZLQJ#QRWH/#DGGHG#WR#WKH#ERWWRP#RI#7DEOH#534=
127(## ,W# LV# HVVHQWLDO# WKDW# WKH# DFWXDO# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# RI# WKH# VKLHOGHG
ORFDWLRQ#EH#YHULILHG#WR#HQVXUH#WKDW#WKH\#PHHW#RU#H[FHHG#WKH#VSHFLILHG#PLQLPXP#YDOXHV1

-6, $# VSHFLILFDWLRQ# RI# WKH# (0,66,216 # FKDUDFWHULVWLFV# RI# RWKHU# HTXLSPHQW# DOORZHG# LQVLGH# WKH
VKLHOGHG#ORFDWLRQ#ZLWK#WKH# (48,30(17 #RU# 6<67(0/#D#OLVW#RI#VSHFLILF#HTXLSPHQW#DOORZHG#RU
D# OLVW# RI# W\SHV# RI# HTXLSPHQW# SURKLELWHG# +VHH# 69153516#D,#6,# DQG# 69153519# D,# 6,,# DQG# D


UHFRPPHQGDWLRQ#WKDW#D# QRWLFH#FRQWDLQLQJ#WKLV# LQIRUPDWLRQ# EH# SRVWHG# DW# WKH# HQWUDQFH+V,
WR#WKH#VKLHOGHG#ORFDWLRQ1
-7, 7KH# DSSOLFDEOH# WDEOH/# 53:# RU# 53;1# 7DEOH# 53:# VKDOO# EH# XVHG# IRU# /,)( 0 6833257,1*
(48,30(17 #DQG# 6<67(06 1#7DEOH#53;#VKDOO#EH#XVHG#IRU# (48,30(17 #DQG# 6<67(06 #WKDW#DUH
QRW# /,)( 0 6833257,1* 1#7KH#WDEOHV#VKDOO#EH#FRPSOHWHG#DV#IROORZV= #;


±# ³> (48,30(17 # RU# 6<67(0@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# 02'(/# 25# 7<3(# 5()(5(1&( # RI
WKH# (48,30(17 #RU# 6<67(0>
127( 7KHUH#DUH#VL[#SODFHV#LQ#7DEOHV#53:#DQG#53;#ZKHUH#³> (48,30(17# RU# 6<67(0 @´#PXVW#EH#UHSODFHG1

±# FROXPQ# 6# RI# 7DEOH# 53:# RU# 53;/# DV# DSSOLFDEOH/# VKDOO# EH# ILOOHG# LQ# ZLWK# WKH# ,0081,7<
&203/,$1&(#/(9(/# LQ#DFFRUGDQFH#ZLWK#WKH#UHTXLUHPHQWV#RI#91;161534#DQG#RI#6915351
,I#DQ# ,0081,7<# &203/,$1&(# /(9(/# ORZHU# RU# KLJKHU# WKDQ# WKH#,(&# 93934# 7(67# /(9(/ #LV


FODLPHG/# LW# VKDOO# EH# RQH# RI# WKH# OHYHOV# OLVWHG# LQ# WKH# UHIHUHQFHG# EDVLF# (0&# ,0081,7<
VWDQGDUG# XQOHVV# WKH# &203/,$1&(# /(9(/# LV# RXWVLGH# WKH# UDQJH# RI# OHYHOV# OLVWHG1# ,I# WKH
&203/,$1&(#/(9(/# LV#RXWVLGH#WKH#UDQJH#RI#OHYHOV#OLVWHG#LQ#WKH#UHIHUHQFHG#EDVLF#(0&
,0081,7< # VWDQGDUG/# WKH# DFWXDO# ,0081,7<# /(9(/ # VKDOO# EH# VWDWHG/# URXQGHG# WR# RQH
VLJQLILFDQW#GLJLW>

-± LQ# FROXPQ# 7# RI# 7DEOH# 53:# RU# 53;/# DV# DSSOLFDEOH/# ³>VKLHOGLQJ# HIIHFWLYHQHVV# 2# ILOWHU
DWWHQXDWLRQ# VSHFLILFDWLRQ@´# VKDOO# EH# UHSODFHG# ZLWK# WKH# VSHFLILFDWLRQ# IRU# PLQLPXP# 5)
VKLHOGLQJ#HIIHFWLYHQHVV#DQG#5)#ILOWHU#DWWHQXDWLRQ/#ZKLFK#VKDOO#PHHW#WKH#UHTXLUHPHQWV
VSHFLILHG#LQ#5,/#DERYH>#³>DSSURSULDWH#VHFWLRQ#RI# $&&203$1<,1*#'2&80(176 @´#VKDOO#EH
UHSODFHG# ZLWK# D# UHIHUHQFH# WR# WKH# ORFDWLRQ# LQ# WKH# $&&203$1<,1*# '2&80(176 # ZKHUH
WKH#LQIRUPDWLRQ#UHTXLUHG#E\#91;161534#F,#6,#FDQ#EH#IRXQG>#DQG#³>ILHOG#VWUHQJWK@´#VKDOO


EH# UHSODFHG# ZLWK# WKH# PD[LPXP# ILHOG# VWUHQJWK# LQ# 92P/# URXQGHG# WR# RQH# VLJQLILFDQW
GLJLW/# RI# IL[HG# 5)# WUDQVPLWWHUV# WKDW# ZKHQ# DWWHQXDWHG# E\# WKH# VSHFLILHG# PLQLPXP# 5)
VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ/#ZLOO#QRW#H[FHHG#WKH# &203/,$1&(# /(9(/
IRU# DQ\# RI# WKH# IUHTXHQF\# UDQJHV1# )RU# FDOFXODWLQJ# ³>ILHOG# VWUHQJWK@´/# WKH# &203/,$1&(
/(9(/6 #IRU#WKH#,(&#943330709#WHVW#VKDOO#EH#FRQVLGHUHG#WR#EH#LQ#XQLWV#RI#92P>


±# LQ# WDEOH# IRRWQRWH# E# RI# 7DEOH# 53:# RU# WDEOH# IRRWQRWH# D# RI# 7DEOH# 53;/# DV# DSSOLFDEOH/
³>ILHOG#VWUHQJWK@´#VKDOO#EH#UHSODFHG#DV#VSHFLILHG#DERYH#IRU#FROXPQ#7#RI#WKH#WDEOH1
G, 5HTXLUHPHQWV#DSSOLFDEOH#WR# (48,30(17# DQG# 6<67(06 #WKDW#LQWHQWLRQDOO\#DSSO\#5)#HQHUJ\#IRU
GLDJQRVLV#RU#WUHDWPHQW


)RU # (48,30(17# DQG# 6<67(06 #WKDW#LQWHQWLRQDOO\# DSSO\# 5)# HQHUJ\#IRU# GLDJQRVLV#RU# WUHDWPHQW/
WKH# $&&203$1<,1*# '2&80(176 # VKDOO# LQFOXGH# JXLGHOLQHV# IRU# DYRLGLQJ# RU# LGHQWLI\LQJ# DQG
UHVROYLQJ# DGYHUVH# HOHFWURPDJQHWLF# HIIHFWV# RQ# RWKHU# HTXLSPHQW# WKDW# PD\# UHVXOW# IURP
RSHUDWLRQ#RI#WKH# (48,30(17# RU# 6<67(01
H, 5HTXLUHPHQWV# DSSOLFDEOH# WR# (48,30(17# DQG# 6<67(06 # WKDW# LQWHQWLRQDOO\# UHFHLYH# 5)
HOHFWURPDJQHWLF#HQHUJ\#IRU#WKH#SXUSRVH#RI#WKHLU#RSHUDWLRQ
)RU# (48,30(17# DQG# 6<67(06 # WKDW# LQWHQWLRQDOO\# UHFHLYH# 5)# HOHFWURPDJQHWLF# HQHUJ\# IRU# WKH


SXUSRVH# RI# WKHLU# RSHUDWLRQ/# WKH# $&&203$1<,1*# '2&80(176 # VKDOO# LQFOXGH# WKH# IROORZLQJ
LQIRUPDWLRQ=
4, HDFK# IUHTXHQF\# RU# IUHTXHQF\# EDQG# RI# UHFHSWLRQ># WKH# SUHIHUUHG# IUHTXHQF\# RU# IUHTXHQF\
EDQG/# LI# DSSOLFDEOH># DQG# WKH# EDQGZLGWK# RI# WKH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17# RU
6<67(0 #LQ#WKRVH#EDQGV>


5, D# ZDUQLQJ# WKDW# WKH# (48,30(17# RU# 6<67(0# PD\# EH# LQWHUIHUHG# ZLWK# E\# RWKHU# HTXLSPHQW/
HYHQ#LI#WKDW#RWKHU#HTXLSPHQW#FRPSOLHV#ZLWK#&,635# (0,66,21 #UHTXLUHPHQWV1
I, 5HTXLUHPHQWV#DSSOLFDEOH#WR# (48,30(17# DQG# 6<67(06 #WKDW#LQFOXGH#5)#WUDQVPLWWHUV


BBBBBBBBBBB
;# 6HH#$QQH[#%%%#IRU#H[DPSOHV1

±#4;#± 9393404052)',6##,(&+(,


)RU# (48,30(17# DQG# 6<67(06 # WKDW# LQFOXGH# 5)# WUDQVPLWWHUV/# WKH# $&&203$1<,1*# '2&80(176
VKDOO# LQFOXGH# HDFK# IUHTXHQF\# RU# IUHTXHQF\# EDQG# RI# WUDQVPLVVLRQ/# WKH# W\SH# DQG# IUHTXHQF\
FKDUDFWHULVWLFV#RI#WKH#PRGXODWLRQ#DQG#WKH# ())(&7,9(#5$',$7('#32:(5 1
-J, 5HTXLUHPHQWV# DSSOLFDEOH# WR# FDEOHV/# WUDQVGXFHUV# DQG# RWKHU# $&&(6625,(6 # WKDW# FRXOG# DIIHFW
FRPSOLDQFH#ZLWK#WKH#UHTXLUHPHQWV#RI#691534#DQG#691535
)RU# FDEOHV/# WUDQVGXFHUV# DQG# RWKHU# $&&(6625,(6 # WKDW# FRXOG# DIIHFW# FRPSOLDQFH# ZLWK# WKH


UHTXLUHPHQWV# RI# 691534# DQG# 691535# WKH# $&&203$1<,1*# '2&80(176 # VKDOO# LQFOXGH# WKH
IROORZLQJ#LQIRUPDWLRQ=
4, D# OLVW# RI# DOO# (48,30(17# DQG# 6<67(06 # ZLWK# ZKLFK# WKH# $&&(6625< /# WUDQVGXFHU# RU# FDEOH
PD\# EH# XVHG# DQG# WKDW# DUH# FODLPHG# E\# WKH# PDQXIDFWXUHU# RI# WKH# $&&(6625< /# WUDQVGXFHU
RU# FDEOH# WR# EH# LQ# FRPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# 691534# DQG# 691535# ZKHQ# XVHG


ZLWK# WKH# $&&(6625< /# WUDQVGXFHU# RU# FDEOH1# 5HIHUHQFHV# VKDOO# EH# VSHFLILF# +H1J1# E\
PDQXIDFWXUHU#DQG# 02'(/#25#7<3(#5()(5(1&( ,>
5, D# ZDUQLQJ# WKDW# WKH# XVH# RI# WKH# $&&(6625< /# WUDQVGXFHU# RU# FDEOH# ZLWK# (48,30(17# DQG
6<67(06 # RWKHU# WKDQ# WKRVH# VSHFLILHG# PD\# UHVXOW# LQ# LQFUHDVHG# (0,66,216 # RU# GHFUHDVHG
,0081,7< #RI#WKH# (48,30(17# RU# 6<67(0 1

K, 5HTXLUHPHQWV#DSSOLFDEOH#WR# /$5*( /# 3(50$1(17/< 0 ,167$//('#(48,30(17# DQG# 6<67(06


)RU# /$5*( /# 3(50$1(17/< 0 ,167$//(' # (48,30(17# DQG# 6<67(06 # IRU# ZKLFK# WKH# H[HPSWLRQ
VSHFLILHG# LQ# 69153516# E,# 4,# LV# XVHG/# WKH# $&&203$1<,1*# '2&80(176 # VKDOO# LQFOXGH# WKH
IROORZLQJ#LQIRUPDWLRQ=
4, D# VWDWHPHQW# WKDW# DQ# H[HPSWLRQ# KDV# EHHQ# XVHG# DQG# WKDW# WKH# (48,30(17# RU# 6<67(0# KDV

QRW# EHHQ# WHVWHG# IRU# UDGLDWHG# 5)# ,0081,7< # RYHU# WKH# HQWLUH# IUHTXHQF\# UDQJH# ;3# 0+]# WR
5/8#*+]>
5, D#ZDUQLQJ#WKDW#WKH# (48,30(17# RU# 6<67(0#KDV#EHHQ#WHVWHG#IRU#UDGLDWHG#5)# ,0081,7< #RQO\
DW#VHOHFWHG#IUHTXHQFLHV>
-6, D#OLVW#RI#WKH#WUDQVPLWWHUV#RU#HTXLSPHQW#XVHG# DV# 5)# WHVW#VRXUFHV# DQG#WKH#IUHTXHQF\# DQG
PRGXODWLRQ#FKDUDFWHULVWLFV#RI#HDFK#VRXUFH1


L, 5HTXLUHPHQWV# DSSOLFDEOH# WR# (48,30(17# DQG# 6<67(06 # IRXQG# E\# D# ULVN# DQDO\VLV# WR# KDYH# QR
(66(17,$/#3(5)250$1&(

4, )RU # (48,30(17# DQG# 6<67(06# IRXQG# E\# D # ULVN# DQDO\VLV# WR# KDYH# QR# (66(17,$/
3(5)250$1&(# DQG# ZKLFK# ZHUH# QRW# WHVWHG# IRU # ,0081,7<# RU# IRU# ZKLFK# WKH # ,0081,7<


&203/,$1&(# &5,7(5,$# ZHUH# FRQVLGHUHG# WR# DOORZ# DOO # '(*5$'$7,216 /# WKH # $&&203$1<,1*
'2&80(176 #VKDOO#LQFOXGH/#LQVWHDG#RI#WKH#LQIRUPDWLRQ#VSHFLILHG#LQ#91;161534#D,#8,#DQG#9,/
E,/# F,# 6,# DQG# 7,/# DQG# K,/# D# VWDWHPHQW# WKDW# WKH# (48,30(17# RU# 6<67(0# ZDV# QRW# WHVWHG# IRU
,0081,7< #WR# (/(&7520$*1(7,&#',6785%$1&(6 1


5, )RU# (48,30(17 # DQG# 6<67(06 # IRXQG# E\# D# ULVN# DQDO\VLV# WR# KDYH# QR# (66(17,$/
3(5)250$1&( # DQG# IRU# ZKLFK# )81&7,216 # ZHUH# WHVWHG# IRU# ,0081,7< # DQG# WKH# ,0081,7<
&203/,$1&(#&5,7(5,$ #ZHUH#FRQVLGHUHG#WR#DSSO\#WR#DOO# '(*5$'$7,216 /#WKH# $&&203$1<,1*
'2&80(176 # VKDOO# LQFOXGH# LQIRUPDWLRQ# DSSOLFDEOH# WR# WKH# (48,30(17 # RU# 6<67(0 # DV
VSHFLILHG#LQ#91;161534#D,#WKURXJK#K,1




9393404052)',6##,(&+(, ±#4<#±


7DEOH#534#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#HPLVVLRQV#±
IRU#DOO# (48,30(17 #DQG# 6<67(06# +VHH#91;161534#D,#6,,

#5RZ

4 *XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#HPLVVLRQV


7KH#> (48,30(17# RU# 6<67(0 @#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH
5
FXVWRPHU#RU#WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1
6 (PLVVLRQV#WHVW &RPSOLDQFH (OHFWURPDJQHWLF#HQYLURQPHQW#±#JXLGDQFH
7KH#> (48,30(17# RU# 6<67(0 @#XVHV#5)#HQHUJ\#RQO\#IRU#LWV
5)#HPLVVLRQV LQWHUQDO#IXQFWLRQ1#7KHUHIRUH/#LWV#5)#HPLVVLRQV#DUH#YHU\
7 *URXS#4
&,635#44 ORZ#DQG#DUH#QRW#OLNHO\#WR#FDXVH#DQ\#LQWHUIHUHQFH#LQ
QHDUE\#HOHFWURQLF#HTXLSPHQW1


5)#HPLVVLRQV 7KH#> (48,30(17# RU# 6<67(0 @#PXVW#HPLW#HOHFWURPDJQHWLF
*URXS#5 HQHUJ\#LQ#RUGHU#WR#SHUIRUP#LWV#LQWHQGHG#IXQFWLRQ1#1HDUE\
8 &,635#44 HOHFWURQLF#HTXLSPHQW#PD\#EH#DIIHFWHG1
5)#HPLVVLRQV
9 &ODVV#>$#RU#%@
&,635#44


+DUPRQLF#HPLVVLRQV >&ODVV#$/#%/#&/#'/#RU
: 1RW#DSSOLFDEOH@
,(&#943330605
9ROWDJH#IOXFWXDWLRQV2
IOLFNHU#HPLVVLRQV >&RPSOLHV#RU
;
1RW#DSSOLFDEOH@

,(&#943330606
7KH#> (48,30(17# RU# 6<67(0 @#LV#VXLWDEOH#IRU#XVH#LQ#DOO
HVWDEOLVKPHQWV/#LQFOXGLQJ#GRPHVWLF#HVWDEOLVKPHQWV#DQG
< >6HH#91;161534#D,#6,
WKRVH#GLUHFWO\#FRQQHFWHG#WR#WKH#SXEOLF#ORZ0YROWDJH
DQG#)LJXUH#534@
SRZHU#VXSSO\#QHWZRUN#WKDW#VXSSOLHV#EXLOGLQJV#XVHG#IRU
GRPHVWLF#SXUSRVHV1
7KH#> (48,30(17# RU# 6<67(0 @#LV#VXLWDEOH#IRU#XVH#LQ#DOO


HVWDEOLVKPHQWV#RWKHU#WKDQ#GRPHVWLF#DQG#WKRVH#GLUHFWO\
>6HH#91;161534#D,#6,
43 FRQQHFWHG#WR#WKH#SXEOLF#ORZ0YROWDJH#SRZHU#VXSSO\
DQG#)LJXUH#534@
QHWZRUN#WKDW#VXSSOLHV#EXLOGLQJV#XVHG#IRU#GRPHVWLF
SXUSRVHV1
5)#HPLVVLRQV 7KH#>(48,30(17@#LV#QRW#VXLWDEOH#IRU#LQWHUFRQQHFWLRQ
44 &RPSOLHV


&,635#4704 ZLWK#RWKHU#HTXLSPHQW1

5)#HPLVVLRQV 7KH#>(48,30(17@#LV#QRW#VXLWDEOH#IRU#LQWHUFRQQHFWLRQ
45 &RPSOLHV
&,635#48 ZLWK#RWKHU#HTXLSPHQW1





±#53#± 9393404052)',6##,(&+(,


6WDUW
IRU#&,635#44 (48,30(17
DQG 6<67(06


5HSODFH#%> (48,30(17 #RU 6<67(0@%#ZLWK#WKH 02'(/
25#7<3(#5()(5(1&( #RI#WKH (48,30(17 #RU 6<67(0

'HOHWH#URZV#7/#44#DQG *URXS#5 *URXS#4 'HOHWH#URZV#8/#44#DQG


*URXS"
45#IURP#7DEOH#534- 45#IURP#7DEOH#534-


% $ 5HSODFH#%>$#RU#%@%
5HSODFH#%>$#RU#%@%
&ODVV"
ZLWK#%%% ZLWK#%$%

&RPSOLHV

,(&#943330605#DQG
943330606
FRPSOLDQFH"
1RW#DSSOLFDEOH

5HSODFH#%>&ODVV#$/#%/#&/#'/#RU#1RW 5HSODFH#%>&ODVV#$/#%/#&/#'/#RU#1RW
DSSOLFDEOH@%#LQ#URZ#:#ZLWK#WKH#,(&#943330605 DSSOLFDEOH@%#LQ#URZ#:#DQG#%>&RPSOLHV#RU#1RW
FODVV#DQG#UHSODFH#%>&RPSOLHV#RU#1RW DSSOLFDEOH@%#LQ#URZ#;#ZLWK#%1RW#DSSOLFDEOH%-
DSSOLFDEOH@%#LQ#URZ#;#ZLWK#%&RPSOLHV%-

0HUJH#FHOOV#LQ#FROXPQ#6 0HUJH#FHOOV#LQ#FROXPQ#6


RI#URZV#9/#:#DQG#;- RI#URZV#9/#:#DQG#;-

% $
&ODVV"

0RYH#WH[W#IURP#FROXPQ#6


0RYH#WH[W#IURP#FROXPQ#6 RI#URZ#43#LQWR#PHUJHG#FHOO-
RI#URZ#<#LQWR#PHUJHG#FHOO-

<HV <HV
6SHFLILHG#IRU#XVH $OORZDQFH#LQ


RQO\#LQ#D#VKLHOGHG 69153414#D,#7,
ORFDWLRQ" XVHG"

1R 1R
$GG#WH[W#VSHFLILHG
E\#91;161534#F,#5,

'HOHWH#URZV#<#DQG#43-


'HOHWH#URZ#QXPEHUV

-#5RZ#QXPEHUV#UHIHU#WR#WKRVH#LQ#7DEOH#534
(QG ##EHIRUH#PRGLILFDWLRQV#DUH#PDGH1


)LJXUH#534#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOH#534
IRU#&,635#44# (48,30(17# DQG# 6<67(06


+VHH#91;161534#D,#6,,

9393404052)',6##,(&+(, ±#54#±


6WDUW 6WDUW
IRU#&,635#47# IRU#&,635#48#
(48,30(17 (48,30(17


5HSODFH#%>(48,30(17@%#ZLWK#WKH# 5HSODFH#%>(48,30(17@%#ZLWK#WKH##
02'(/#25#7<3(#5()(5(1&(#RI# 02'(/#25#7<3(#5()(5(1&(#RI#WKH#
WKH#(48,30(17 (48,30(17


'HOHWH#URZV#7#WKURXJK#9#DQG# 'HOHWH#URZV#7#WKURXJK#9#DQG#
URZ#45#IURP#7DEOH#534-# URZ#44#IURP#7DEOH#534-#

&RPSOLHV


,(&#943330605#DQG#
943330606#
FRPSOLDQFH"
1RW#DSSOLFDEOH

5HSODFH#%>&ODVV#$/#%/#&/#'/#RU#1RW# 5HSODFH#%>&ODVV#$/#%/#&/#'/#RU#1RW#DSSOLFDEOH@%#
DSSOLFDEOH@%#LQ#URZ#:#ZLWK#WKH#,(&#943330605# LQ#URZ#:#DQG#%>&RPSOLHV#RU#1RW#DSSOLFDEOH@%#LQ#
FODVV#DQG#UHSODFH#%>&RPSOLHV#RU#1RW# URZ#;#ZLWK#%1RW#DSSOLFDEOH%-


DSSOLFDEOH@%#LQ#URZ#;#ZLWK#%&RPSOLHV%-

0HUJH#FHOOV#LQ#FROXPQ#6# 0HUJH#FHOOV#LQ#FROXPQ#6#
RI#URZV#:#DQG#;- RI#URZV#:#DQG#;-


0RYH#WH[W#IURP#FROXPQ#6#RI# 0RYH#WH[W#IURP#FROXPQ#6#RI#
URZ#<#LQWR#PHUJHG#FHOO- URZ#43#LQWR#PHUJHG#FHOO-


'HOHWH#URZV#<#DQG#43-


'HOHWH#URZ#QXPEHUV

-#5RZ#QXPEHUV#UHIHU#WR#WKRVH#LQ#7DEOH#534
(QG ##EHIRUH#PRGLILFDWLRQV#DUH#PDGH1#


)LJXUH#535#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOH#534
IRU#&,635#47#DQG#&,635#48# (48,30(17
+VHH#91;161534#D,#6,,


±#55#± 9393404052)',6##,(&+(,


7DEOH#535#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU#DOO# (48,30(17 #DQG# 6<67(06 #+VHH#91;161534#D,#9,,

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#> (48,30(17# RU# 6<67(0 @#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU
RU#WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1


,PPXQLW\#WHVW
,(&#93934
&RPSOLDQFH#OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ±
WHVW#OHYHO JXLGDQFH
(OHFWURVWDWLF ±9#N9#FRQWDFW )ORRUV#VKRXOG#EH#ZRRG/#FRQFUHWH#RU
GLVFKDUJH#+(6', FHUDPLF#WLOH1#,I#IORRUV#DUH#FRYHUHG#ZLWK
±;#N9#DLU V\QWKHWLF#PDWHULDO/#WKH#UHODWLYH#KXPLGLW\
,(&#943330705 VKRXOG#EH#DW#OHDVW#63#(1


(OHFWULFDO#IDVW ±5#N9#IRU#SRZHU 0DLQV#SRZHU#TXDOLW\#VKRXOG#EH#WKDW#RI#D
WUDQVLHQW2EXUVW VXSSO\#OLQHV W\SLFDO#FRPPHUFLDO#RU#KRVSLWDO
HQYLURQPHQW1
,(&#943330707 ±4#N9#IRU#LQSXW2RXWSXW
OLQHV
6XUJH ±4#N9#GLIIHUHQWLDO 0DLQV#SRZHU#TXDOLW\#VKRXOG#EH#WKDW#RI#D


PRGH W\SLFDO#FRPPHUFLDO#RU#KRVSLWDO
,(&#943330708 HQYLURQPHQW1
±5#N9#FRPPRQ#PRGH
9ROWDJH#GLSV/#VKRUW ?8#(#8 7 0DLQV#SRZHU#TXDOLW\#VKRXOG#EH#WKDW#RI#D
LQWHUUXSWLRQV#DQG +!<8#(#GLS#LQ#8 7 , W\SLFDO#FRPPHUFLDO#RU#KRVSLWDO
YROWDJH#YDULDWLRQV IRU#3/8#F\FOH HQYLURQPHQW1#,I#WKH#XVHU#RI#WKH

RQ#SRZHU#VXSSO\ > (48,30(17# RU# 6<67(0 @#UHTXLUHV
LQSXW#OLQHV 73#(#8 7 FRQWLQXHG#RSHUDWLRQ#GXULQJ#SRZHU
+93#(#GLS#LQ#8 7 , PDLQV#LQWHUUXSWLRQV/#LW#LV#UHFRPPHQGHG
,(&#9433307044 IRU#8#F\FOHV WKDW#WKH#> (48,30(17# RU# 6<67(0 @#EH
:3#(#8 7 SRZHUHG#IURP#DQ#XQLQWHUUXSWLEOH#SRZHU
+63#(#GLS#LQ#8 7 , VXSSO\#RU#D#EDWWHU\1
IRU#58#F\FOHV


?8#(#8 7
+!<8#(#GLS#LQ#8 7 ,
IRU#8#VHF
3RZHU#IUHTXHQF\ 6#$2P 3RZHU#IUHTXHQF\#PDJQHWLF#ILHOGV
+83293#+], VKRXOG#EH#DW#OHYHOV#FKDUDFWHULVWLF#RI#D
PDJQHWLF#ILHOG W\SLFDO#ORFDWLRQ#LQ#D#W\SLFDO#FRPPHUFLDO


RU#KRVSLWDO#HQYLURQPHQW1
,(&#94333070;
127( 8 7 #LV#WKH#D1F1#PDLQV#YROWDJH#SULRU#WR#DSSOLFDWLRQ#RI#WKH#WHVW#OHYHO1





9393404052)',6##,(&+(, ±#56#±


6WDUW

5HSODFH#%>(48,30(17#RU#6<67(0@%#


ZLWK#WKH#02'(/#25#7<3(#5()(5(1&(#
RI#WKH#(48,30(17#RU#6<67(0#LQ#IRXU#
SODFHV


,Q#7DEOH#535/#FROXPQ#6/#HQWHU#
WKH#&203/,$1&(#/(9(/#+RU#%1RW#
DSSOLFDEOH%#LI#DSSURSULDWH,#IRU#
HDFK#WHVW##

,Q#7DEOH#535/#UHSODFH#WKH#WH[W#LQ#WKH#
FRUUHVSRQGLQJ#URZ#RI#FROXPQ#7#ZLWK#D#

<HV GHVFULSWLRQ#RI#WKH#DFWLRQV#WKH#XVHU#PXVW#
,V#WKH#&203/,$1&(#/(9(/#
WDNH#WR#UHGXFH#HQYLURQPHQWDO#OHYHOV#RI#
ORZHU#WKDQ#WKH#,(&#939340405#
WKH#',6785%$1&(#VR#WKDW#WKH\#DUH#OHVV#
7(67#/(9(/"
WKDQ#RU#HTXDO#WR#WKH#&203/,$1&(#/(9(/#
OLVWHG#LQ#FROXPQ#6


1R


,Q#7DEOH#535/#WKH#WH[W#LQ#WKH#
FRUUHVSRQGLQJ#URZ#RI#FROXPQ#7#
<HV
,V#WKH#&203/,$1&(#/(9(/# PD\#EH#UHSODFHG#ZLWK#D#
KLJKHU#WKDQ#WKH#,(&#939340405# GHVFULSWLRQ#RI#WKH#HQYLURQPHQW#


7(67#/(9(/" IRU#ZKLFK#WKH#(48,30(17#RU#
6<67(0#LV#VXLWDEOH

1R


(QG


)LJXUH#536#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOH#535
+VHH#91;161534#D,#9,,


±#57#± 9393404052)',6##,(&+(,


7DEOH#536#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU# /,)( 0 6833257,1*#(48,30(17 #DQG# 6<67(06 #+VHH#91;161534#E,,

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#> (48,30(17# RU# 6<67(0 @#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU
WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1


&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ± #JXLGDQFH

3RUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW
VKRXOG#EH#XVHG#QR#FORVHU#WR#DQ\#SDUW#RI#WKH
> (48,30(17# RU# 6<67(0 @/#LQFOXGLQJ#FDEOHV/#WKDQ#WKH
UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH#FDOFXODWHG#IURP


WKH#HTXDWLRQ#DSSOLFDEOH#WR#WKH#IUHTXHQF\#RI#WKH
WUDQVPLWWHU1
5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH

6/8
&RQGXFWHG#5) 6#9UPV >9 4 @#9 G > @ 3
94
,(&#943330709 483#N+]#WR#;3#0+]
RXWVLGH#,60#EDQGV D


45
43#9UPV >9 5 @#9 G > @ 3
95
483#N+]#WR#;3#0+]
LQ#,60#EDQGV D

45
5DGLDWHG#5) 43#92P >( 4 @#92P G > @ 3 ;3#0+]#WR#;33#0+]
(4 ##
,(&#943330706 ;3#0+]#WR#5/8#*+]

56
G > @ 3 ;33#0+]#WR#5/8#*+]
(4 ##


ZKHUH#3#LV#WKH#PD[LPXP#RXWSXW#SRZHU#UDWLQJ#RI#WKH
WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU
PDQXIDFWXUHU#DQG#G#LV#WKH#UHFRPPHQGHG#VHSDUDWLRQ
GLVWDQFH#LQ#PHWUHV#+P,1 E
)LHOG#VWUHQJWKV#IURP#IL[HG#5)#WUDQVPLWWHUV/#DV


GHWHUPLQHG#E\#DQ#HOHFWURPDJQHWLF#VLWH#VXUYH\/ F
VKRXOG#EH#OHVV#WKDQ#WKH#FRPSOLDQFH#OHYHO#LQ#HDFK
IUHTXHQF\#UDQJH1 G
,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=


127(#4 $W#;3#0+]#DQG#;33#0+]/#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1
127(#5 7KHVH#JXLGHOLQHV#PD\#QRW#DSSO\#LQ#DOO#VLWXDWLRQV1#(OHFWURPDJQHWLF#SURSDJDWLRQ#LV#DIIHFWHG#E\#DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
D
7KH# ,60# +LQGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO,# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DUH# 9/:98# 0+]# WR# 9/:<8# 0+]>
46/886#0+]#WR#46/89:#0+]>#59/<8:#0+]#WR#5:/5;6#0+]>#DQG#73/99#0+]#WR#73/:3#0+]1


E
7KH# FRPSOLDQFH# OHYHOV# LQ# WKH# ,60# IUHTXHQF\# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DQG# LQ# WKH# IUHTXHQF\# UDQJH
;3#0+]# WR# 5/8# *+]# DUH# LQWHQGHG# WR# GHFUHDVH# WKH# OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW
FRXOG# FDXVH# LQWHUIHUHQFH# LI# LW# LV# LQDGYHUWHQWO\# EURXJKW# LQWR# SDWLHQW# DUHDV1# )RU# WKLV# UHDVRQ/# DQ# DGGLWLRQDO# IDFWRU# RI
4326#LV#XVHG#LQ#FDOFXODWLQJ#WKH#UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH#IRU#WUDQVPLWWHUV#LQ#WKHVH#IUHTXHQF\#UDQJHV1
F
)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG


PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH
VXUYH\#VKRXOG#EH#FRQVLGHUHG1#,I#WKH#PHDVXUHG#ILHOG#VWUHQJWK#LQ#WKH#ORFDWLRQ#LQ#ZKLFK#WKH#> (48,30(17# RU# 6<67(0 @#LV
XVHG#H[FHHGV#WKH#DSSOLFDEOH#5)#FRPSOLDQFH#OHYHO#DERYH/#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#EH#REVHUYHG#WR#YHULI\
QRUPDO# RSHUDWLRQ1# ,I# DEQRUPDO# SHUIRUPDQFH# LV# REVHUYHG/# DGGLWLRQDO# PHDVXUHV# PD\# EH# QHFHVVDU\/# VXFK# DV# UH0
RULHQWLQJ#RU#UHORFDWLQJ#WKH#> (48,30(17# RU# 6<67(0 @1


G
2YHU#WKH#IUHTXHQF\#UDQJH#483#N+]#WR#;3#0+]/#ILHOG#VWUHQJWKV#VKRXOG#EH#OHVV#WKDQ#>9 4 @#92P1

9393404052)',6##,(&+(, ±#58#±


7DEOH#537#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU# (48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*# +VHH#91;161534#E,,

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#> (48,30(17# RU# 6<67(0 @#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU
WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1


&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ±# JXLGDQFH

3RUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW
VKRXOG#EH#XVHG#QR#FORVHU#WR#DQ\#SDUW#RI#WKH
> (48,30(17# RU# 6<67(0 @/#LQFOXGLQJ#FDEOHV/#WKDQ#WKH
UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH#FDOFXODWHG#IURP


WKH#HTXDWLRQ#DSSOLFDEOH#WR#WKH#IUHTXHQF\#RI#WKH
WUDQVPLWWHU1
5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH

6/8
&RQGXFWHG#5) 6#9UPV >9 4 @#9 G > @ 3
94
,(&#943330709 483#N+]#WR#;3#0+]

5DGLDWHG#5)
,(&#943330706
6#92P
;3#0+]#WR#5/8#*+]
>( 4 @#92P G >
6/8
(4

:
@ 3 ##;3#0+]#WR#;33#0+]

G > @ 3 ##;33#0+]#WR#5/8#*+]
(4

ZKHUH#3#LV#WKH#PD[LPXP#RXWSXW#SRZHU#UDWLQJ#RI#WKH
WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU
PDQXIDFWXUHU#DQG#G#LV#WKH#UHFRPPHQGHG#VHSDUDWLRQ
GLVWDQFH#LQ#PHWUHV#+P,1


)LHOG#VWUHQJWKV#IURP#IL[HG#5)#WUDQVPLWWHUV/#DV#GHWHU0
PLQHG#E\#DQ#HOHFWURPDJQHWLF#VLWH#VXUYH\/ D #VKRXOG#EH
OHVV#WKDQ#WKH#FRPSOLDQFH#OHYHO#LQ#HDFK#IUHTXHQF\
UDQJH1 E
,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=


127(#4 $W#;3#0+]#DQG#;33#0+]/#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1


127(#5 7KHVH#JXLGHOLQHV#PD\#QRW#DSSO\#LQ#DOO#VLWXDWLRQV1#(OHFWURPDJQHWLF#SURSDJDWLRQ#LV#DIIHFWHG#E\#DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
D
)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG
PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH
VXUYH\#VKRXOG#EH#FRQVLGHUHG1#,I#WKH#PHDVXUHG#ILHOG#VWUHQJWK#LQ#WKH#ORFDWLRQ#LQ#ZKLFK#WKH#> (48,30(17# RU# 6<67(0 @#LV
XVHG#H[FHHGV#WKH#DSSOLFDEOH#5)#FRPSOLDQFH#OHYHO#DERYH/#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#EH#REVHUYHG#WR#YHULI\
QRUPDO# RSHUDWLRQ1# ,I# DEQRUPDO# SHUIRUPDQFH# LV# REVHUYHG/# DGGLWLRQDO# PHDVXUHV# PD\# EH# QHFHVVDU\/# VXFK# DV# UH0


RULHQWLQJ#RU#UHORFDWLQJ#WKH#> (48,30(17# RU# 6<67(0 @1


E
2YHU#WKH#IUHTXHQF\#UDQJH#483#N+]#WR#;3#0+]/#ILHOG#VWUHQJWKV#VKRXOG#EH#OHVV#WKDQ#>9 4 @#92P1



±#59#± 9393404052)',6##,(&+(,


7DEOH#538#±#5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ#SRUWDEOH#DQG#PRELOH
5)#FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH# (48,30(17# RU# 6<67(0 #±
IRU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06# +VHH#91;161534#E,,

5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ
SRUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH#> (48,30(17#RU# 6<67(0 @


7KH#> (48,30(17# RU# 6<67(0 @#LV#LQWHQGHG#IRU#XVH#LQ#DQ#HOHFWURPDJQHWLF#HQYLURQPHQW#LQ#ZKLFK#UDGLDWHG#5)#GLVWXUEDQFHV#DUH
FRQWUROOHG1#7KH#FXVWRPHU#RU#WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#FDQ#KHOS#SUHYHQW#HOHFWURPDJQHWLF#LQWHUIHUHQFH#E\
PDLQWDLQLQJ#D#PLQLPXP#GLVWDQFH#EHWZHHQ#SRUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW#+WUDQVPLWWHUV,#DQG#WKH
> (48,30(17# RU# 6<67(0 @#DV#UHFRPPHQGHG#EHORZ/#DFFRUGLQJ#WR#WKH#PD[LPXP#RXWSXW#SRZHU#RI#WKH#FRPPXQLFDWLRQV
HTXLSPHQW1
6HSDUDWLRQ#GLVWDQFH#DFFRUGLQJ#WR#IUHTXHQF\#RI#WUDQVPLWWHU


P
483#N+]#WR#;3#0+] 483#N+]#WR#;3#0+] ;3#0+]#WR#;33#0+] ;33#0+]#WR#5/8#*+]
RXWVLGH#,60 LQ#,60#EDQGV
EDQGV
5DWHG#PD[LPXP#RXWSXW 45 45 56
6/8 G > @ 3 G > @ 3 G > @ 3
SRZHU#RI#WUDQVPLWWHU G > @ 3 95 (4 (4
: 94


3/34
3/4
4

43
433
)RU#WUDQVPLWWHUV#UDWHG#DW#D#PD[LPXP#RXWSXW#SRZHU#QRW#OLVWHG#DERYH/#WKH#UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH#G#LQ#PHWUHV#+P,
FDQ# EH# GHWHUPLQHG# XVLQJ# WKH# HTXDWLRQ# DSSOLFDEOH# WR# WKH# IUHTXHQF\# RI# WKH# WUDQVPLWWHU/# ZKHUH# 3# LV# WKH# PD[LPXP# RXWSXW
SRZHU#UDWLQJ#RI#WKH#WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU#PDQXIDFWXUHU1
127(#4 $W#;3#0+]#DQG#;33#0+]/#WKH#VHSDUDWLRQ#GLVWDQFH#IRU#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1


127(#5 7KH# ,60# +LQGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO,# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DUH# 9/:98#0+]# WR# 9/:<8# 0+]>
46/886#0+]#WR#46/89:#0+]>#59/<8:#0+]#WR#5:/5;6#0+]>#DQG#73/99#0+]#WR#73/:3#0+]1
127(#6 $Q# DGGLWLRQDO# IDFWRU# RI# 4326# LV# XVHG# LQ# FDOFXODWLQJ# WKH# UHFRPPHQGHG# VHSDUDWLRQ# GLVWDQFH# IRU# WUDQVPLWWHUV# LQ# WKH
,60# IUHTXHQF\# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DQG# LQ# WKH# IUHTXHQF\# UDQJH# ;3#0+]# WR# 5/8# *+]# WR# GHFUHDVH# WKH
OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW# FRXOG# FDXVH# LQWHUIHUHQFH# LI# LW# LV# LQDGYHUWHQWO\# EURXJKW# LQWR
SDWLHQW#DUHDV1


127(#7 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ# DQG
UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1





9393404052)',6##,(&+(, ±#5:#±


7DEOH#539#±#5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ#SRUWDEOH#DQG#PRELOH
5)#FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH# (48,30(17# RU# 6<67(0 #±
IRU# (48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*# +VHH#91;161534#E,

5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ
SRUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH#> (48,30(17#RU# 6<67(0 @


7KH# > (48,30(17# RU# 6<67(0 @# LV# LQWHQGHG# IRU# XVH# LQ# DQ# HOHFWURPDJQHWLF# HQYLURQPHQW# LQ# ZKLFK# UDGLDWHG# 5)# GLVWXUEDQFHV
DUH# FRQWUROOHG1# 7KH# FXVWRPHU# RU# WKH# XVHU# RI# WKH# > (48,30(17# RU# 6<67(0 @# FDQ# KHOS# SUHYHQW# HOHFWURPDJQHWLF# LQWHUIHUHQFH
E\#PDLQWDLQLQJ#D#PLQLPXP#GLVWDQFH#EHWZHHQ#SRUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW#+WUDQVPLWWHUV,#DQG#WKH
> (48,30(17# RU# 6<67(0 @# DV# UHFRPPHQGHG# EHORZ/# DFFRUGLQJ# WR# WKH# PD[LPXP# RXWSXW# SRZHU# RI# WKH# FRPPXQLFDWLRQV
HTXLSPHQW1
6HSDUDWLRQ#GLVWDQFH#DFFRUGLQJ#WR#IUHTXHQF\#RI#WUDQVPLWWHU


P
5DWHG#PD[LPXP#RXWSXW#SRZHU
RI#WUDQVPLWWHU 483#N+]#WR#;3#0+] ;3#0+]#WR#;33#0+] ;33#0+]#WR#5/8#*+]

: 6/8 6/8 :
G > @ 3 G > @ 3 G > @ 3
94 (4 (4
3/34


3/4
4
43

433
)RU# WUDQVPLWWHUV# UDWHG# DW# D# PD[LPXP# RXWSXW# SRZHU# QRW# OLVWHG# DERYH/# WKH# UHFRPPHQGHG# VHSDUDWLRQ# GLVWDQFH# G# LQ
PHWUHV#+P,# FDQ# EH# HVWLPDWHG# XVLQJ# WKH# HTXDWLRQ# DSSOLFDEOH# WR# WKH# IUHTXHQF\# RI# WKH# WUDQVPLWWHU/# ZKHUH# 3# LV# WKH
PD[LPXP#RXWSXW#SRZHU#UDWLQJ#RI#WKH#WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU#PDQXIDFWXUHU1
127(#4 $W#;3#0+]#DQG#;33#0+]/#WKH#VHSDUDWLRQ#GLVWDQFH#IRU#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1
127(#5 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ# DQG
UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1








±#5;#± 9393404052)',6##,(&+(,


6WDUW


5HSODFH#%>(48,30(17#RU#6<67(0@%#ZLWK#WKH#
02'(/#25#7<3(#5()(5(1&(#RI#WKH#
(48,30(17#RU#6<67(0#LQ#VL[#SODFHV#LQ#
7DEOH#536#DQG#IRXU#SODFHV#LQ#7DEOH#538


,Q#7DEOH#536/#HQWHU#9
,Q#7DEOH#536/#HQWHU# 955#DQG#(
#DQG#(44#LQ#
#LQ
FROXPQ#61##(QWHU#9
FROXPQ#61#(QWHU# #LQ#FROXPQ#6#
944#LQ#FROXPQ#6
DQG#LQ#WDEOH#IRRWQRWH#G


&DOFXODWH#6/829
&DOFXODWH#6/82 944/#4529
/#452955/#/

452(4 #DQG#562(
452(4#DQG#562(4 4

5RXQG#WR#WZR#


VLJQLILFDQW#GLJLWV

6XEVWLWXWH#UHVXOWV#IRU#


FRUUHVSRQGLQJ#H[SUHVVLRQV#
LQ#7DEOHV#536#DQG#538


&DOFXODWH#HDFK#HQWU\#LQ#7DEOH#538#XVLQJ#WKH#
HTXDWLRQ#LQ#WKH#FRUUHVSRQGLQJ#FROXPQ#DQG#
WKH#RXWSXW#SRZHU#LQ#FROXPQ#4/#DV#DSSOLFDEOH/#
URXQGLQJ#WR#WZR#VLJQLILFDQW#GLJLWV


(QG


)LJXUH#537#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOHV#536#DQG#538
IRU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06
+VHH#91;161534#E,,


9393404052)',6##,(&+(, ±#5<#±


6WDUW


5HSODFH#%>(48,30(17#RU#6<67(0@%#ZLWK#
WKH#02'(/#25#7<3(#5()(5(1&(#RI#WKH#
(48,30(17#RU#6<67(0#LQ#VL[#SODFHV#LQ#
7DEOH#537#DQG#IRXU#SODFHV#LQ#7DEOH#539


,Q#7DEOH#537/#HQWHU#(
,Q#7DEOH#537/#HQWHU# (44#LQ#FROXPQ#
#LQ
61##(QWHU#9 #LQ#FROXPQ#6#DQG#LQ#
4
FROXPQ#61#(QWHU# 94#LQ#FROXPQ#6


WDEOH#IRRWQRWH#E
DQG#LQ#WDEOH#IRRWQRWH#E

&DOFXODWH#6/82(
&DOFXODWH#6/82(44/#:2(4#
/#:2(4
DQG#6/829
DQG#6/82944

5RXQG#WR#WZR#


VLJQLILFDQW#GLJLWV


6XEVWLWXWH#UHVXOWV#IRU#
FRUUHVSRQGLQJ#H[SUHVVLRQV#
LQ#7DEOHV#537#DQG#539


&DOFXODWH#HDFK#HQWU\#LQ#7DEOH#539#XVLQJ#WKH#
HTXDWLRQ#LQ#WKH#FRUUHVSRQGLQJ#FROXPQ#DQG#
WKH#RXWSXW#SRZHU#LQ#FROXPQ#4/#DV#DSSOLFDEOH/#
URXQGLQJ#WR#WZR#VLJQLILFDQW#GLJLWV


(QG


)LJXUH#538#±#,QVWUXFWLRQV#IRU#FRPSOHWLQJ#7DEOHV#537#DQG#539
#IRU# (48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*
+VHH#91;161534#E,,


±#63#± 9393404052)',6##,(&+(,


7DEOH#53:#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06# WKDW#DUH#VSHFLILHG
IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ#+VHH#91;161534#F,#7,,

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\


7KH#> (48,30(17# RU# 6<67(0 @#LV#VXLWDEOH#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU
WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HOHFWURPDJQHWLF#HQYLURQPHQW1
&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ±# JXLGDQFH

&RQGXFWHG#5) 6#9UPV 7KH#> (48,30(17# RU# 6<67(0 @#PXVW#EH#XVHG#RQO\#LQ#D


VKLHOGHG#ORFDWLRQ#ZLWK#D#PLQLPXP#5)#VKLHOGLQJ
,(&#943330709 483#N+]#WR#;3#0+] HIIHFWLYHQHVV#DQG/#IRU#HDFK#FDEOH#WKDW#HQWHUV#WKH


RXWVLGH#,60#EDQGV D VKLHOGHG#ORFDWLRQ/#D#PLQLPXP#5)#ILOWHU#DWWHQXDWLRQ#RI
>VKLHOGLQJ#HIIHFWLYHQHVV#2#ILOWHU#DWWHQXDWLRQ
VSHFLILFDWLRQ@1#6HH#>DSSURSULDWH#VHFWLRQ#RI
43#9UPV $&&203$1<,1*#'2&80(176 @1

483#N+]#WR#;3#0+] )LHOG#VWUHQJWKV#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#IURP
LQ#,60#EDQGV D IL[HG#5)#WUDQVPLWWHUV/#DV#GHWHUPLQHG#E\#DQ
HOHFWURPDJQHWLF#VLWH#VXUYH\/#VKRXOG#EH#OHVV#WKDQ


>ILHOG#VWUHQJWK@#92P1 E
5DGLDWHG#5) 43#92P ,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
,(&#943330706 ;3#0+]#WR#5/8#*+] PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=

127(#4## 7KHVH#JXLGHOLQHV#PD\#QRW#DSSO\#LQ#DOO#VLWXDWLRQV1#(OHFWURPDJQHWLF#SURSDJDWLRQ#LV#DIIHFWHG#E\#DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
127(#5## ,W#LV#HVVHQWLDO#WKDW#WKH#DFWXDO#VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ#RI#WKH#VKLHOGHG#ORFDWLRQ#EH
YHULILHG#WR#DVVXUH#WKDW#WKH\#PHHW#WKH#PLQLPXP#VSHFLILFDWLRQ1


D
7KH#,60#+LQGXVWULDO/#VFLHQWLILF#DQG#PHGLFDO,#EDQGV#EHWZHHQ#483#N+]#DQG#;3#0+]#DUH#9/:98#0+]#WR#9/:<8#0+]>
46/886#0+]#WR#46/89:#0+]>#59/<8:#0+]#WR#5:/5;6#0+]>#DQG#73/99#0+]#WR#73/:3#0+]1
E
)LHOG#VWUHQJWKV#IURP#IL[HG#WUDQVPLWWHUV/#VXFK#DV#EDVH#VWDWLRQV#IRU#UDGLR#+FHOOXODU2FRUGOHVV,#WHOHSKRQHV#DQG#ODQG
PRELOH#UDGLRV/#DPDWHXU#UDGLR/#$0#DQG#)0#UDGLR#EURDGFDVW#DQG#79#EURDGFDVW#FDQQRW#EH#SUHGLFWHG#WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R#DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ#HOHFWURPDJQHWLF#VLWH


VXUYH\#VKRXOG#EH#FRQVLGHUHG1#,I#WKH#PHDVXUHG#ILHOG#VWUHQJWK#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#LQ#ZKLFK#WKH
> (48,30(17# RU# 6<67(0 @#LV#XVHG#H[FHHGV#>ILHOG#VWUHQJWK@#92P/#REVHUYH#WKH#> (48,30(17# RU# 6<67(0 @#WR#YHULI\#QRUPDO
RSHUDWLRQ1#,I#DEQRUPDO#SHUIRUPDQFH#LV#REVHUYHG/#DGGLWLRQDO#PHDVXUHV#PD\#EH#QHFHVVDU\/#VXFK#DV#UHORFDWLQJ#WKH
> (48,30(17# RU# 6<67(0 @#RU#XVLQJ#D#VKLHOGHG#ORFDWLRQ#ZLWK#D#KLJKHU#5)#VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU
DWWHQXDWLRQ1





9393404052)',6##,(&+(, ±#64#±


7DEOH#53;#±#*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\#±
IRU# (48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1*# DQG#DUH#VSHFLILHG
IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ#+VHH#91;161534#F,#7,,

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\


7KH#> (48,30(17# RU# 6<67(0 @#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU
WKH#XVHU#RI#WKH#> (48,30(17# RU# 6<67(0 @#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HOHFWURPDJQHWLF#HQYLURQPHQW1
&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ±# JXLGDQFH

&RQGXFWHG#5) 6#9UPV 7KH#> (48,30(17# RU# 6<67(0 @#PXVW#EH#XVHG#RQO\#LQ#D


VKLHOGHG#ORFDWLRQ#ZLWK#D#PLQLPXP#5)#VKLHOGLQJ
,(&#943330709 483#N+]#WR#;3#0+] HIIHFWLYHQHVV#DQG/#IRU#HDFK#FDEOH#WKDW#HQWHUV#WKH


VKLHOGHG#ORFDWLRQ/#D#PLQLPXP#5)#ILOWHU#DWWHQXDWLRQ#RI
>VKLHOGLQJ#HIIHFWLYHQHVV#2#ILOWHU#DWWHQXDWLRQ
5DGLDWHG#5) 6#92P VSHFLILFDWLRQ@1#6HH#>DSSURSULDWH#VHFWLRQ#RI
$&&203$1<,1*#'2&80(176 @1
,(&#943330706 ;3#0+]#WR#5/8#*+]
)LHOG#VWUHQJWKV#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#IURP
IL[HG#5)#WUDQVPLWWHUV/#DV#GHWHUPLQHG#E\#DQ
HOHFWURPDJQHWLF#VLWH#VXUYH\/#VKRXOG#EH#OHVV#WKDQ


>ILHOG#VWUHQJWK@#92P1 D
,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=

127(# 4## 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
127(# 5## ,W# LV# HVVHQWLDO# WKDW# WKH# DFWXDO# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# RI# WKH# VKLHOGHG# ORFDWLRQ# EH
YHULILHG#WR#DVVXUH#WKDW#WKH\#PHHW#WKH#PLQLPXP#VSHFLILFDWLRQ1
D


)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG
PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH
VXUYH\# VKRXOG# EH# FRQVLGHUHG1# ,I# WKH# PHDVXUHG# ILHOG# VWUHQJWK# RXWVLGH# WKH# VKLHOGHG# ORFDWLRQ# LQ# ZKLFK# WKH
> (48,30(17# RU# 6<67(0 @# LV# XVHG# H[FHHGV# >ILHOG# VWUHQJWK@# 92P/# WKH# > (48,30(17# RU# 6<67(0 @# VKRXOG# EH# REVHUYHG# WR
YHULI\# QRUPDO# RSHUDWLRQ1# ,I# DEQRUPDO# SHUIRUPDQFH# LV# REVHUYHG/# DGGLWLRQDO# PHDVXUHV# PD\# EH# QHFHVVDU\/# VXFK# DV
UHORFDWLQJ# WKH# > (48,30(17# RU# 6<67(0 @# RU# XVLQJ# D# VKLHOGHG# ORFDWLRQ# ZLWK# D# KLJKHU# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG


ILOWHU#DWWHQXDWLRQ1





±#65#± 9393404052)',6##,(&+(,


6(&7,216#7:2#72#)285#±#127#86('

6(&7,21#),9(#±#3527(&7,21#$*$,167#+$=$5'6#)520#81:$17('
25#(;&(66,9(#5$',$7,21


69## ( /(&7520$*1(7,&#&203$7,%,/,7<

691534## ( 0,66,216

69153414## 3URWHFWLRQ#RI#UDGLR#VHUYLFHV


-D, 5HTXLUHPHQWV
( 48,30(17# DQG# 6<67(06 /#H[FHSW#DV#VSHFLILHG#LQ#4,#WKURXJK#6,#EHORZ/#VKDOO#EH#FODVVLILHG#DV
*URXS#4# RU#*URXS#5# DQG#&ODVV#$# RU# &ODVV#%# LQ# DFFRUGDQFH# ZLWK# &,635#44/# EDVHG# RQ# WKHLU
LQWHQGHG# XVH/# DV# VSHFLILHG# E\# WKH# PDQXIDFWXUHU/# XVLQJ# WKH# JXLGHOLQHV# LQ# $QQH[#&&&1
( 48,30(17# DQG# 6<67(06 # VKDOO# FRPSO\# ZLWK# &,635# UHTXLUHPHQWV/# EDVHG# XSRQ# WKHLU


FODVVLILFDWLRQ/#ZLWK#WKH#H[FHSWLRQV#DQG#FODULILFDWLRQV#VSHFLILHG#LQ#7,#DQG#8,#EHORZ1
-4, 6LPSOH#HOHFWULFDO#FRPSRQHQWV
0 (',&$/# (/(&75,&$/# (48,30(17# FRQWDLQLQJ# RQO\# VLPSOH# HOHFWULFDO# FRPSRQHQWV# OLNH
PRWRUV# DQG# VZLWFKHV# DQG# QRW# XWLOL]LQJ# DQ\# HOHFWURQLF# FLUFXLWU\# WKDW# JHQHUDWHV# RU# XVHV

IUHTXHQFLHV# DERYH# <#N+]# +H1J1# VRPH# GHQWDO# GULOOV/# VRPH# YHQWLODWRUV/# VRPH# RSHUDWLQJ
WDEOHV,# PD\# EH# FODVVLILHG# LQ# DFFRUGDQFH# ZLWK# &,635#47041# &ODVVLILFDWLRQ# WR
&,635#4704/# KRZHYHU/# LV# OLPLWHG# WR# VWDQG0DORQH# (48,30(17 # DQG# LV# QRW# DSSOLFDEOH# WR
6<67(06 #RU#VXE0 6<67(06 1

5, /LJKWLQJ#HTXLSPHQW
/LJKWLQJ# HTXLSPHQW# XVHG# LQ# PHGLFDO# DSSOLFDWLRQV# +H1J1# HTXLSPHQW# IRU# LOOXPLQDWLRQ# RI


;0UD\# ILOPV/# OLJKWLQJ# GHYLFHV# IRU# RSHUDWLQJ# WKHDWUHV,# PD\# EH# FODVVLILHG# LQ# DFFRUGDQFH
ZLWK# &,635#481# &ODVVLILFDWLRQ# WR# &,635#48/# KRZHYHU/# LV# OLPLWHG# WR# VWDQG0DORQH
(48,30(17 #DQG#LV#QRW#DSSOLFDEOH#WR# 6<67(06 #RU#VXE0 6<67(06 1

-6, ,QIRUPDWLRQ#WHFKQRORJ\#HTXLSPHQW#+,7(,


,7(# FRQQHFWHG# WR# (48,30(17# DQG# 6<67(06 # PD\# EH# FODVVLILHG# LQ# DFFRUGDQFH# ZLWK
&,635#55# ZLWK# WKH# IROORZLQJ# UHVWULFWLRQ=# &,635# 55# &ODVV#%# HTXLSPHQW# PD\# EH# XVHG
ZLWK# &,635# 44# &ODVV# $# RU# &ODVV# %# 6<67(06 /# EXW# &,635# 55# &ODVV# $# HTXLSPHQW# PD\
RQO\#EH#XVHG#ZLWK#&,635#44#&ODVV#$# 6<67(06 1 <
-7, ( 48,30(17# DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ


±# )RU# (48,30(17# DQG# 6<67(06 # WKDW# DUH#VSHFLILHG#IRU#XVH# RQO\# LQ# D#VKLHOGHG# ORFDWLRQ/
WKH# HOHFWURPDJQHWLF# UDGLDWLRQ# GLVWXUEDQFH# OLPLWV# RI# &,635# 44# PD\# EH# LQFUHDVHG/
ZKHQ# WHVWV# DUH# SHUIRUPHG# RQ# D# WHVW# VLWH/# E\# DQ# DPRXQW# XS# WR# WKH# DSSOLFDEOH
VSHFLILHG# YDOXH#RI#PLQLPXP#5)#VKLHOGLQJ# HIIHFWLYHQHVV/# SURYLGHG# WKH# PLQLPXP# 5)
VKLHOGLQJ#HIIHFWLYHQHVV#VSHFLILFDWLRQ#PHHWV#WKH#UHTXLUHPHQWV#VSHFLILHG#LQ#91;161534
F,#5,1
±# )RU# (48,30(17# DQG# 6<67(06 # WKDW# DUH#VSHFLILHG#IRU#XVH# RQO\# LQ# D#VKLHOGHG# ORFDWLRQ/


WKH# PDLQV# WHUPLQDO# GLVWXUEDQFH# YROWDJH# OLPLWV# RI# &,635# 44# PD\# EH# LQFUHDVHG/
ZKHQ# WHVWV# DUH# SHUIRUPHG# RQ# D# WHVW# VLWH/# E\# DQ# DPRXQW# XS# WR# WKH# DSSOLFDEOH
VSHFLILHG# YDOXH# RI# PLQLPXP# 5)# ILOWHU# DWWHQXDWLRQ# IRU# DOO# FDEOHV# WKDW# H[LW# WKH
VKLHOGHG# ORFDWLRQ/# SURYLGHG# WKH# PLQLPXP# 5)# ILOWHU# DWWHQXDWLRQ# VSHFLILFDWLRQ# PHHWV
WKH#UHTXLUHPHQWV#VSHFLILHG#LQ#91;161534#F,#5,1



BBBBBBBBBBB
<# 6HH#$QQH[#&&&1

9393404052)',6##,(&+(, ±#66#±


-8, ( 48,30(17# DQG# 6<67(06 #WKDW#LQFOXGH#UDGLR#HTXLSPHQW
( 48,30(17# DQG# 6<67(06 #WKDW#LQFOXGH#UDGLR#HTXLSPHQW#DQG#KDYH#EHHQ#WHVWHG#DQG#IRXQG
WR#FRPSO\# ZLWK# DSSOLFDEOH# QDWLRQDO#UDGLR#UHJXODWLRQV#DUH#H[HPSW#IURP# WHVWLQJ# WR# &,635
(/(&7520$*1(7,&# ',6785%$1&( # UHTXLUHPHQWV/# SURYLGHG# WKH# (0,66,216 # OLPLWV# RI# WKH
DSSOLFDEOH# QDWLRQDO# UDGLR# UHJXODWLRQV# DUH# OHVV# WKDQ# RU# HTXDO# WR# WKH# FRUUHVSRQGLQJ
DSSOLFDEOH# &,635# (/(&7520$*1(7,&# ',6785%$1&( # OLPLWV1# ( 48,30(17# DQG# 6<67(06 # WKDW


LQFOXGH# 5)# WUDQVPLWWHUV# DUH# H[HPSW# IURP# WKH# (0,66,216 # UHTXLUHPHQWV# RI# WKLV# VWDQGDUG
LQ# WKH# GHGLFDWHG# WUDQVPLVVLRQ# EDQG# RI# WKH# WUDQVPLWWHU1# 2WKHUZLVH/# DQG# IRU# (48,30(17
DQG# 6<67(06# LQWHQGHG# RQO\# IRU# FRXQWULHV# ZLWK# QR# QDWLRQDO# UDGLR# UHJXODWLRQV/# WKH
(0,66,216 #UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#VKDOO#DSSO\1

9, 'RFXPHQWDWLRQ#RI#WKH#WHVW


7KH#GRFXPHQWDWLRQ#RI#WKH#WHVW#VKDOO#LQFOXGH#WKH#WHVW#PHWKRGV#XVHG#WR#YHULI\#FRPSOLDQFH
ZLWK# WKH# UHTXLUHPHQWV# RI# WKLV# VXEFODXVH# DQG# MXVWLILFDWLRQ# IRU# DQ\# DOORZDQFHV# RI# WKLV
VWDQGDUG# XVHG1# 7KLV# GRFXPHQWDWLRQ# VKDOO# LQFOXGH# D# GHVFULSWLRQ# RI# WKH# (48,30(17# RU
6<67(0 # XQGHU# WHVW/# WHVW# HTXLSPHQW# DQG# WHVW# VHW0XS/# VHWWLQJV# DQG# PRGH+V,# RI# WKH
(48,30(17# RU# 6<67(0 /#FDEOH#OD\RXW/#DQG#DOO# 3$7,(17 #SK\VLRORJLFDO/# $&&(6625< #DQG#VXE0
6<67(0 #VLPXODWRUV#XVHG1


&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV=
E, 7HVWV
&,635# WHVW# PHWKRGV# VKDOO# EH# XVHG/# ZLWK# WKH# FODULILFDWLRQV# DQG# H[FHSWLRQV# VSHFLILHG# LQ# 4,
DQG#5,#EHORZ1

-4, 3 $7,(17 #FDEOHV
3 $7,(17 0FRXSOHG#FDEOHV#VKDOO#EH#FRQVLGHUHG#LQWHUFRQQHFWLQJ#FDEOHV#LQ#DFFRUGDQFH#ZLWK
WKH# UHTXLUHPHQWV# RI# &,635#441# $Q\# 3$7,(17 0FRXSOHG# FDEOH# WHUPLQDWLRQ# XVHG# VKDOO# EH
GHVFULEHG# LQ# WKH# GRFXPHQWDWLRQ# RI# WKH# WHVW1# ,I# VLPXODWHG# 3$7,(17 # SK\VLRORJLFDO# VLJQDOV
DUH# UHTXLUHG# WR# VLPXODWH# QRUPDO# RSHUDWLRQ# RI# WKH# (48,30(17# RU# 6<67(0 /# WKH\# VKDOO# EH
SURYLGHG1# 7KH# 3$7,(17 # FRXSOLQJ# SRLQW# VKDOO# QRW# KDYH# DQ# LQWHQWLRQDO# FRQGXFWLYH# RU


FDSDFLWLYH#FRQQHFWLRQ#WR#JURXQG#GXULQJ#WHVWLQJ1#8QLQWHQWLRQDO#FDSDFLWDQFH# EHWZHHQ# WKH


3$7,(17 #FRXSOLQJ#SRLQW#DQG#JURXQG#VKRXOG#EH#QR#JUHDWHU#WKDQ#583#S)1

-5, 6XE0 6<67(06


&RPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# &,635#44# PD\# EH# GHPRQVWUDWHG# E\# WHVWLQJ# HDFK
VXE0 6<67(0 #RI#D# 6<67(0 /#SURYLGHG#WKDW#QRUPDO#RSHUDWLQJ#FRQGLWLRQV#DUH#VLPXODWHG1


:KHQ# (48,30(17 # LV# EHLQJ# HYDOXDWHG# WKDW# LQWHUDFWV# ZLWK# RWKHU# (48,30(17 # WR# IRUP# D
6<67(0 /# WKHQ# WKH# HYDOXDWLRQ# PD\# EH# FDUULHG# RXW# XVLQJ# HLWKHU# DGGLWLRQDO# (48,30(17 # WR
UHSUHVHQW#WKH#WRWDO# 6<67(0 #RU#ZLWK#WKH#XVH#RI#VLPXODWRUV1
6, / $5*( /# 3(50$1(17/< 0 ,167$//('#(48,30(17# DQG# 6<67(06


/ $5*( /# 3(50$1(17/< 0 ,167$//('#(48,30(17# DQG# 6<67(06 #WKDW#DUH#FRQVWUXFWHG#LQ#VXFK#D


ZD\#WKDW#VLPXODWHG#RSHUDWLRQ#RI#VXE0 6<67(06 #LV#QRW# IHDVLEOH# PD\# EH# W\SH# WHVWHG# DW#WKH
SUHPLVHV# RI# D# W\SLFDO# XVHU# LQ# DFFRUGDQFH# ZLWK# &,635#44/# &ODXVH# 8/# /LPLWV# RI
HOHFWURPDJQHWLF#GLVWXUEDQFHV/#DQG#4415/#(TXLSPHQW#LQ#VPDOO0VFDOH#SURGXFWLRQ1 43

69153415## 3URWHFWLRQ#RI#RWKHU#HTXLSPHQW


-6915341514## /RZ#IUHTXHQF\#PDJQHWLF#ILHOGV

1R#UHTXLUHPHQWV#DSSO\1



BBBBBBBBBBB
43# 6HH#&,635#44=#4<<:1

±#67#± 9393404052)',6##,(&+(,


69153416## 3URWHFWLRQ#RI#WKH# 38%/,&#0$,16#1(7:25.

6915341614## +DUPRQLF#GLVWRUWLRQ

-D, 5HTXLUHPHQWV
( 48,30(17# DQG# 6<67(06 # ZLWK# D# 5$7(' # LQSXW# FXUUHQW# XS# WR# DQG# LQFOXGLQJ# 49#$# SHU# SKDVH


DQG#WKDW#DUH# LQWHQGHG# WR#EH#FRQQHFWHG#WR# WKH# 38%/,&# 0$,16# 1(7:25.# VKDOO#FRPSO\# ZLWK# WKH
UHTXLUHPHQWV# RI# ,(&#9433306051# ,I# DQ# (48,30(17# RU # 6<67(0# KDV# ERWK# ORQJ0WLPH# DQG
PRPHQWDU\# FXUUHQW# UDWLQJV/# WKH# KLJKHU# RI# WKH# WZR# UDWLQJV# VKDOO# EH# XVHG# LQ# GHWHUPLQLQJ# WKH
DSSOLFDELOLW\#RI#,(&#9433306051
&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV=
E, 7HVWV


7KH#WHVW#PHWKRGV#DQG#WHVW#HTXLSPHQW#VSHFLILHG#E\#,(&#943330605#VKDOO#DSSO\1

6915341615## 9ROWDJH#IOXFWXDWLRQV#DQG#IOLFNHU

-D, 5HTXLUHPHQWV


( 48,30(17# DQG # 6<67(06 # ZLWK# D# 5$7(' # LQSXW# FXUUHQW# XS# WR# DQG# LQFOXGLQJ# 49#$# SHU# SKDVH
DQG#WKDW#DUH# LQWHQGHG# WR#EH#FRQQHFWHG#WR# WKH# 38%/,&# 0$,16# 1(7:25.# VKDOO#FRPSO\# ZLWK# WKH
UHTXLUHPHQWV# RI# ,(&#9433306061# ,I# DQ# (48,30(17# RU # 6<67(0# KDV# ERWK# ORQJ0WLPH# DQG
PRPHQWDU\# FXUUHQW# UDWLQJV/# WKH# KLJKHU# RI# WKH# WZR# UDWLQJV# VKDOO# EH# XVHG# LQ# GHWHUPLQLQJ# WKH
DSSOLFDELOLW\#RI#,(&#9433306061

&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV=
E, 7HVWV
7KH#WHVW#PHWKRGV#DQG#WHVW#HTXLSPHQW#VSHFLILHG#E\#,(&#943330606#VKDOO#DSSO\1

691535## , 0081,7<


-69153514## *HQHUDO

-D, , 0081,7< # 7(67#/(9(/6


6XEFODXVH#691535#VSHFLILHV# ,0081,7< #UHTXLUHPHQWV#WKDW#DUH#DSSURSULDWH#IRU# (48,30(17# DQG
6<67(06 # LQWHQGHG# IRU# XVH# LQ# D# W\SLFDO# KHDOWK# FDUH# (/(&7520$*1(7,&# (19,5210(17 1 44# 8QWLO


OLPLWV# DUH# GHYHORSHG# IRU# RWKHU# HQYLURQPHQWV/# WKH# UHTXLUHPHQWV# RI# 691535# VKDOO# DSSO\# WR
(48,30(17# DQG# 6<67(06 # XVHG# LQ# DOO# HQYLURQPHQWV1# :KHQ# WKH# H[SHFWHG# HOHFWURPDJQHWLF
FKDUDFWHULVWLFV#RI#WKH#LQWHQGHG#XVH#HQYLURQPHQW#MXVWLI\#KLJKHU# ,0081,7<# 7(67# /(9(/6 /#WKHVH
KLJKHU# ,0081,7<# 7(67# /(9(/6 # VKDOO# WDNH# SUHFHGHQFH1# /RZHU# ,0081,7< # &203/,$1&(# /(9(/6
DUH# DOORZHG/ 45# SURYLGHG# WKH\# DUH# MXVWLILHG# EDVHG# RQ# VLJQLILFDQW# SK\VLFDO/# WHFKQRORJLFDO# RU


SK\VLRORJLFDO#OLPLWDWLRQV#+VHH#91;161534#D,#8,,1
E, 'RFXPHQWDWLRQ#RI#WKH#WHVW
7KH# GRFXPHQWDWLRQ# RI# WKH# WHVW# VKDOO# LQFOXGH# WKH# WHVW# PHWKRGV# XVHG# WR# YHULI\# FRPSOLDQFH
ZLWK# WKH# UHTXLUHPHQWV# RI# WKLV# VXEFODXVH# DQG# MXVWLILFDWLRQ# IRU# DQ\# DOORZDQFHV# RI# WKLV
VWDQGDUG#XVHG1#7KLV#GRFXPHQWDWLRQ#VKDOO#LQFOXGH#D#GHVFULSWLRQ#RI#WKH# (48,30(17# RU# 6<67(0
XQGHU#WHVW/#GHWDLOV#RI#WKH#FRPSOLDQFH#FULWHULD#XVHG/#WHVW#HTXLSPHQW#DQG#WHVW#VHW0XS/#VHWWLQJV
DQG# PRGH+V,# RI# WKH# (48,30(17# RU# 6<67(0/# FDEOH# OD\RXW# DQG# DOO# 3$7,(17 # SK\VLRORJLFDO/


$&&(6625< #DQG#VXE0 6<67(0 #VLPXODWRUV#XVHG1

-F, 2SHUDWLQJ#PRGH#DQG#FRQILJXUDWLRQ
'XULQJ# ,0081,7< #WHVWLQJ/#HDFK# )81&7,21 #RI#WKH# (48,30(17# RU# 6<67(0#WKDW#LV#DVVRFLDWHG#ZLWK
(66(17,$/# 3(5)250$1&( # VKDOO# EH# WHVWHG# LQ# WKH# PRGH# WKDW# LV# PRVW# FULWLFDO# IURP# D# 3$7,(17


RXWFRPH# SHUVSHFWLYH/# EDVHG# XSRQ# D# ULVN# DQDO\VLV/# XVLQJ# HTXLSPHQW# RSWLRQV/# FDEOH# OD\RXW
DQG# $&&(6625,(6 #LQ#D#W\SLFDO#FRQILJXUDWLRQ/#FRQVLVWHQW#ZLWK# 1250$/ # 86( 1#7KLV#ULVN#DQDO\VLV
LV# QRW# UHTXLUHG# LI# DOO# PRGHV# RI# WKH# (48,30(17# RU# 6<67(0# DUH# WHVWHG1# ,I# WKH# (48,30(17# RU

BBBBBBBBBBB


44 )RU#LQIRUPDWLRQ#FRQFHUQLQJ# (/(&7520$*1(7,&#(19,5210(176 /#UHIHU#WR#$QQH[#(((#DQG#WKH#%LEOLRJUDSK\1

45 :ULWHUV#RI#3DUWLFXODU#6WDQGDUGV#VKRXOG#UHIHU#WR#'''15#D,#IRU#JXLGDQFH#UHJDUGLQJ#WKLV#DOORZDQFH1

9393404052)',6##,(&+(, ±#68#±


6<67(0 # LV# QRW# 5$7(' # IRU# FRQWLQXRXV# GXW\/# WKH# RSHUDWLQJ# PRGH# PD\# LQVWHDG# EH# VHOHFWHG
VXFK#WKDW#UHOLDEOH#RSHUDWLRQ#LV#REWDLQHG#IRU#WKH#DSSOLFDEOH#WHVW#GXUDWLRQ1
-G, 1RQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW
1RQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW#WKDW#LV#VXSSOLHG#DV#SDUW#RI#D# 6<67(0# DQG#WKH#XVH#RI#ZKLFK
LQ# WKH# 6<67(0 # FDQ# EH# UHDVRQDEO\# H[SHFWHG# QRW# WR# DIIHFW# WKH# (66(17,$/# 3(5)250$1&(# RU
VDIHW\# RI# WKH# 6<67(0# LI# WKH# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# H[KLELWV# '(*5$'$7,21 /# LV


H[HPSW#IURP#WKH# ,0081,7< #WHVWLQJ#UHTXLUHPHQWV#RI#WKLV#VWDQGDUG/#SURYLGHG#WKH#QRQ0PHGLFDO
HOHFWULFDO# HTXLSPHQW# FRPSOLHV# ZLWK# DSSOLFDEOH# LQWHUQDWLRQDO# ,0081,7< # VWDQGDUGV1 46# 7KH
GHWHUPLQDWLRQ# RI# UHDVRQDEOH# H[SHFWDWLRQ# QRW# WR# DIIHFW# WKH# (66(17,$/# 3(5)250$1&(# RU
VDIHW\# RI#WKH# 6<67(0# VKDOO#EH#EDVHG#XSRQ#D#ULVN#DQDO\VLV1#7KLV#ULVN#DQDO\VLV#LV#QRW#UHTXLUHG
LI#WKH#QRQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW#VXSSOLHG#DV#SDUW#RI#D# 6<67(0# LV#WHVWHG#IRU# ,0081,7<
LQ#DFFRUGDQFH#ZLWK#6915351


-H, 3 $7,(17 0 &283/('#(48,30(17# DQG# 6<67(06
3 $7,(17 0 &283/('# (48,30(17# DQG# 6<67(06 # VKDOO# EH# WHVWHG# VR# WKDW# WKH# 3$7,(17 # FRXSOLQJ
SRLQW# LV# ZLWKLQ# WKH# WHVW# HQYLURQPHQW1# 7KH# 3$7,(17 # FRXSOLQJ# SRLQW# VKDOO# QRW# KDYH# DQ
LQWHQWLRQDO# FRQGXFWLYH# RU# FDSDFLWLYH# FRQQHFWLRQ# WR# JURXQG# GXULQJ# WHVWLQJ/# H[FHSW# DV
RWKHUZLVH#VSHFLILHG#LQ#D#VXEFODXVH#RI#WKLV#VWDQGDUG1#8QLQWHQWLRQDO#FDSDFLWDQFH#EHWZHHQ#WKH


3$7,(17 #FRXSOLQJ#SRLQW#DQG#JURXQG#VKRXOG#EH#QR#JUHDWHU#WKDQ#583#S)1

-I, 9DULDEOH#JDLQ
( 48,30(17 # DQG# 6<67(06 # WKDW# LQFRUSRUDWH# D# YDULDEOH# JDLQ# VKDOO# EH# WHVWHG# DW# WKH# KLJKHVW
JDLQ#VHWWLQJ#WKDW#DOORZV#SURSHU#RSHUDWLRQ1

,I# WKLV# UHTXLUHPHQW# FDQ# EH# PHW# ZLWK# WKH# QRUPDO# VRIWZDUH# RI# WKH # (48,30(17 # RU# 6<67(0/# WKH
WHVW#VKDOO#EH#SHUIRUPHG#XVLQJ#WKH#QRUPDO#VRIWZDUH1#,I#WKLV#UHTXLUHPHQW#FDQQRW#EH#PHW#XVLQJ
WKH#QRUPDO#VRIWZDUH#RI#WKH #(48,30(17 #RU# 6<67(0/#D#PHWKRG#VKDOO#EH#SURYLGHG#WR#LPSOHPHQW
WKLV#RSHUDWLRQDO#PRGH1#7KH#XVH#RI#VSHFLDO#VRIWZDUH#PD\#EH#UHTXLUHG1#,I#VSHFLDO#VRIWZDUH# LV
XVHG/#LW#VKDOO#QRW#LQKLELW#FKDQJHV#LQ#JDLQ#WKDW#PD\#RFFXU#DV#D#UHVXOW#RI#WHVWLQJ1
-J, 3 $7,(17 #VLPXODWLRQ


,I# VLPXODWHG# 3$7,(17 # SK\VLRORJLFDO# VLJQDOV# DUH# UHTXLUHG# WR# YHULI\# QRUPDO# RSHUDWLRQ# RI# WKH
(48,30(17 # RU# 6<67(0 /# WKH\# VKDOO# EH# SURYLGHG# GXULQJ# ,0081,7< # WHVWLQJ1# 7KH# VLPXODWRU# XVHG
VKDOO# QRW# SURYLGH# DQ# LQWHQWLRQDO# FRQGXFWLYH# RU# FDSDFLWLYH# FRQQHFWLRQ# WR# JURXQG# GXULQJ
WHVWLQJ/# H[FHSW# DV# RWKHUZLVH# VSHFLILHG# LQ# D# VXEFODXVH# RI# WKLV# VWDQGDUG1# 8QLQWHQWLRQDO
FDSDFLWDQFH# EHWZHHQ# WKH# 3$7,(17 # FRXSOLQJ# SRLQW# DQG# JURXQG# VKRXOG# EH# QR# JUHDWHU# WKDQ


583#S)1# 3ULRU# WR# WKH# EHJLQQLQJ# RI# WKH# WHVW/# WKH# VLPXODWHG# VLJQDO# VKDOO# EH# DGMXVWHG# DV
IROORZV=
−# )RU# (48,30(17 # DQG# 6<67(06 # ZLWKRXW# D# PDQXDO# VHQVLWLYLW\# DGMXVWPHQW/# WKH# VLPXODWHG
3$7,(17 # SK\VLRORJLFDO# VLJQDO# VKDOO# EH# VHW# WR# WKH# ORZHVW# DPSOLWXGH# RU# YDOXH# FRQVLVWHQW
ZLWK# QRUPDO# RSHUDWLRQ# DV# VSHFLILHG# E\# WKH# PDQXIDFWXUHU1# ,I# WKLV# PLQLPXP# DPSOLWXGH# RU


YDOXH# LV# VSHFLILHG# E\# WKH# PDQXIDFWXUHU/# LW# VKDOO# EH# LQFOXGHG# LQ# LQVWUXFWLRQV# IRU# XVH# DV
VSHFLILHG# LQ# 91;151534# F,1# ,I# WKH# ORZHVW# DPSOLWXGH# RU# YDOXH# FRQVLVWHQW# ZLWK# QRUPDO
RSHUDWLRQ# LV# QRW# VSHFLILHG# E\# WKH# PDQXIDFWXUHU/# WKHQ# WKH# VLPXODWHG# 3$7,(17
SK\VLRORJLFDO# VLJQDO# VKDOO# EH# VHW# WR# WKH# PLQLPXP# DPSOLWXGH# RU# YDOXH# DW# ZKLFK# WKH
(48,30(17 #RU# 6<67(0# RSHUDWHV#DV#LQWHQGHG1

−# )RU# (48,30(17 # DQG# 6<67(06 # ZLWK# D# PDQXDO# VHQVLWLYLW\# DGMXVWPHQW/# WKH# VLPXODWHG
3$7,(17 # SK\VLRORJLFDO# VLJQDO# VKDOO# EH# VHW# DFFRUGLQJ# WR# WKH# PDQXIDFWXUHU¶V# VHQVLWLYLW\


DGMXVWPHQW# JXLGHOLQHV# ZLWK# WKH# (48,30(17 # RU# 6<67(0# RSHUDWLQJ# DW# LWV# PRVW# VHQVLWLYH
VHWWLQJ1
,I#VLPXODWHG# 3$7,(17 #SK\VLRORJLFDO#VLJQDOV#DUH#QRW#UHTXLUHG#WR#YHULI\#QRUPDO#RSHUDWLRQ#RI
WKH# (48,30(17 # RU# 6<67(0/# WKH# (48,30(17 # RU# 6<67(0# VKDOO# EH# WHVWHG# DV# VSHFLILHG# LQ
69153514#F,#ZLWKRXW# 3$7,(17 #SK\VLRORJLFDO#VLJQDO#VLPXODWLRQ1



BBBBBBBBBBB
46 )RU#H[DPSOH#VHH#&,635#57#IRU#,7(#DQG#,(&#9465904#IRU#PHDVXUHPHQW/#FRQWURO#DQG#ODERUDWRU\#HTXLSPHQW1

±#69#± 9393404052)',6##,(&+(,


-K, 7HVWLQJ#RI#QRUPDOO\#QRQ0REVHUYDEOH# )81&7,216
,I# WKH# RSHUDWLRQ# RI# D# )81&7,21 # DVVRFLDWHG# ZLWK# (66(17,$/# 3(5)250$1&(# +H1J1# D# FULWLFDO
DODUP,#FDQQRW#QRUPDOO\#EH#REVHUYHG#RU#YHULILHG#GXULQJ#WKH#WHVW/#D#PHWKRG#VKDOO#EH#SURYLGHG
+H1J1# GLVSOD\# RI# LQWHUQDO# SDUDPHWHUV,# IRU# GHWHUPLQLQJ# FRPSOLDQFH1# 7KH# XVH# RI# VSHFLDO
VRIWZDUH#RU#KDUGZDUH#PD\#EH#QHHGHG1
-L, 6XE0 6<67(06


&RPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# WKLV# VWDQGDUG# PD\# EH# GHPRQVWUDWHG# E\# WHVWLQJ# HDFK
VXE0 6<67(0#RI#D# 6<67(0 /#SURYLGHG#WKDW#QRUPDO#RSHUDWLQJ#FRQGLWLRQV#DUH#VLPXODWHG1
:KHQ# (48,30(17 #LV#EHLQJ#HYDOXDWHG#WKDW#LQWHUDFWV#ZLWK#RWKHU# (48,30(17 #WR#IRUP#D# 6<67(0/
WKHQ#WKH# HYDOXDWLRQ#PD\#EH#FDUULHG# RXW#XVLQJ# HLWKHU# DGGLWLRQDO# (48,30(17 #WR#UHSUHVHQW#WKH
WRWDO# 6<67(0#RU#ZLWK#WKH#XVH#RI#VLPXODWRUV1


-M, &RPSOLDQFH#FULWHULD
8QGHU# WKH# WHVW# FRQGLWLRQV# VSHFLILHG# LQ# 691535/# WKH# (48,30(17# RU# 6<67(0# VKDOO# EH# DEOH# WR
SURYLGH# WKH# (66(17,$/# 3(5)250$1&( # DQG# UHPDLQ# VDIH1# 7KH# IROORZLQJ# '(*5$'$7,216
DVVRFLDWHG#ZLWK# (66(17,$/#3(5)250$1&( #DQG#VDIHW\#VKDOO#QRW#EH#DOORZHG=
± FRPSRQHQW#IDLOXUHV>


± FKDQJHV#LQ#SURJUDPPDEOH#SDUDPHWHUV>
± UHVHW#WR#IDFWRU\#GHIDXOWV#+PDQXIDFWXUHU¶V#SUHVHWV,>
± FKDQJH#RI#RSHUDWLQJ#PRGH>
± IDOVH#DODUPV>

± FHVVDWLRQ#RU#LQWHUUXSWLRQ#RI#DQ\#LQWHQGHG#RSHUDWLRQ/#HYHQ#LI#DFFRPSDQLHG#E\#DQ#DODUP>
± LQLWLDWLRQ# RI# DQ\# XQLQWHQGHG# RSHUDWLRQ/# LQFOXGLQJ# XQLQWHQGHG# RU# XQFRQWUROOHG# PRWLRQ/
HYHQ#LI#DFFRPSDQLHG#E\#DQ#DODUP>
± HUURU#RI#D#GLVSOD\HG#QXPHULFDO#YDOXH#VXIILFLHQWO\#ODUJH#WR#DIIHFW#GLDJQRVLV#RU#WUHDWPHQW>


± QRLVH# RQ# D# ZDYHIRUP# LQ# ZKLFK# WKH# QRLVH# LV# LQGLVWLQJXLVKDEOH# IURP# SK\VLRORJLFDOO\0
SURGXFHG#VLJQDOV#RU#WKH#QRLVH#LQWHUIHUHV#ZLWK#LQWHUSUHWDWLRQ#RI#SK\VLRORJLFDOO\0SURGXFHG
VLJQDOV>
± DUWHIDFW# RU# GLVWRUWLRQ# LQ# DQ# LPDJH# LQ# ZKLFK# WKH# DUWHIDFW# LV# LQGLVWLQJXLVKDEOH# IURP
SK\VLRORJLFDOO\0SURGXFHG# VLJQDOV# RU# WKH# GLVWRUWLRQ# LQWHUIHUHV# ZLWK# LQWHUSUHWDWLRQ# RI


SK\VLRORJLFDOO\0SURGXFHG#VLJQDOV>
± IDLOXUH# RI# DXWRPDWLF# GLDJQRVLV# RU# WUHDWPHQW# (48,30(17# DQG# 6<67(06 # WR# GLDJQRVH# RU
WUHDW/#HYHQ#LI#DFFRPSDQLHG#E\#DQ#DODUP1
)RU# (48,30(17# DQG# 6<67(06 # ZLWK#PXOWLSOH# )81&7,216 /# WKH# FULWHULD# DSSO\# WR# HDFK# )81&7,21 /


SDUDPHWHU#DQG#FKDQQHO1
7KH# (48,30(17# RU# 6<67(0# PD\# H[KLELW# '(*5$'$7,21 # RI# SHUIRUPDQFH# +H1J1# GHYLDWLRQ# IURP
PDQXIDFWXUHU¶V#VSHFLILFDWLRQV,#WKDW#GRHV#QRW#DIIHFW# (66(17,$/#3(5)250$1&( #RU#VDIHW\1
-N, ( 48,30(17 #DQG# 6<67(06 #WKDW#LQFOXGH#UDGLR#HTXLSPHQW
)RU# (48,30(17 #DQG# 6<67(06 #WKDW#LQFOXGH#UDGLR#HTXLSPHQW#DQG#LQ#ZKLFK#WKH# ,0081,7< #RI#WKH
UDGLR# FRPPXQLFDWLRQ# )81&7,21# KDV# EHHQ# WHVWHG# DQG# IRXQG# WR# FRPSO\# ZLWK# DSSOLFDEOH
QDWLRQDO# UDGLR# UHJXODWLRQV/# WKH# UDGLR# HTXLSPHQW# LV# H[HPSW# IURP# WHVWLQJ# WR# WKH# ,0081,7<


UHTXLUHPHQWV# RI# WKLV# VWDQGDUG/# SURYLGHG# WKH# ,0081,7<# UHTXLUHPHQWV# RI# WKH# DSSOLFDEOH
QDWLRQDO# UDGLR# UHJXODWLRQV# IRU# WKH# H[HPSWHG# ,0081,7< # WHVW# DUH# JUHDWHU# WKDQ# RU# HTXDO# WR
WKRVH# GHWHUPLQHG# LQ# DFFRUGDQFH# ZLWK# 69153514# D,# RI# WKLV# VWDQGDUG1# 2WKHUZLVH/# DQG# IRU
(48,30(17 #DQG# 6<67(06 #LQWHQGHG#RQO\#IRU#FRXQWULHV#ZLWK#QR#QDWLRQDO#UDGLR#UHJXODWLRQV/#WKH
,0081,7< #UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#VKDOO#DSSO\1


69153515## (OHFWURVWDWLF#GLVFKDUJH#+(6',

-D, 5HTXLUHPHQWV
( 48,30(17# DQG# 6<67(06 # VKDOO# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514# M,# DW# ,0081,7<


7(67# /(9(/6 # RI# ±5# N9/#±7#N9# DQG#±;#N9# IRU# DLU# GLVFKDUJH# DQG# ±5# N9/#±7#N9# DQG#±9#N9# IRU
FRQWDFW#GLVFKDUJH1

9393404052)',6##,(&+(, ±#6:#±


&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV#DQG#GHWHUPLQHG#GXULQJ#DQG#DIWHU#WKH#WHVWV#LQ
DFFRUGDQFH# ZLWK# 69153514# M,/# EDVHG# XSRQ# WKH# UHVSRQVH# RI# WKH# (48,30(17# RU# 6<67(0 /
FRQVLGHULQJ#HDFK#GLVFKDUJH#LQGLYLGXDOO\=
E, 7HVWV
7KH# WHVW# PHWKRGV# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#943330705# DSSO\/# ZLWK# WKH# IROORZLQJ
PRGLILFDWLRQV=


-4, 7KH# WLPH# EHWZHHQ# GLVFKDUJHV# VKDOO# KDYH# DQ# LQLWLDO# YDOXH# RI# 4# V1# /RQJHU# WLPH# EHWZHHQ
GLVFKDUJHV# PD\# EH# UHTXLUHG# LQ# RUGHU# WR# EH# DEOH# WR# GLVWLQJXLVK# EHWZHHQ# D# UHVSRQVH
FDXVHG#E\#D#VLQJOH#GLVFKDUJH#DQG#D#UHVSRQVH#FDXVHG#E\#D#QXPEHU#RI#GLVFKDUJHV1
-5, &RQWDFW# GLVFKDUJHV#VKDOO#EH# DSSOLHG#WR#FRQGXFWLYH# $&&(66,%/(# 3$576 #RI# WKH# (48,30(17
RU# 6<67(0 #DQG#FRXSOLQJ#SODQHV1


-6, $LU# GLVFKDUJHV# VKDOO# EH# DSSOLHG# WR# QRQ0FRQGXFWLYH# $&&(66,%/(# 3$576 # RI# WKH# (48,30(17
RU# 6<67(0 # DQG# FRQGXFWLYH# QRQ0DFFHVVLEOH# SRUWLRQV# RI# $&&(66,%/(# 3$576 1# ,I# WKH
(48,30(17# RU# 6<67(0 # LV# ODEHOOHG# ZLWK# WKH# ,(&#9374:08467# V\PERO# DGMDFHQW# WR# D
FRQQHFWRU/# WKDW# FRQQHFWRU# LV# H[HPSW# IURP# WKLV# WHVWLQJ1# +6HH# 914153415# DQG# 91;151534
E,1,


-7, ( 48,30(17# DQG# 6<67(06 # WKDW# DUH# ,17(51$//<# 32:(5(' /# DUH# RI# &/$66# ,, # RU# FRQWDLQ
FLUFXLWU\#LVRODWHG#IURP# SURWHFWLYH#HDUWK# VKDOO# EH# WHVWHG# LQ# VXFK# D# ZD\# DV# WR# HQVXUH# WKDW
WKHUH# LV# QR# DSSUHFLDEOH# FKDUJH# UHWHQWLRQ# EHWZHHQ# LQGLYLGXDO# WHVW# GLVFKDUJHV1# 7KH
SRWHQWLDO#RQ#WKH# (48,30(17# RU# 6<67(0 #PD\#EH#HTXDOL]HG# ZLWK#WKDW#RI# WKH#JURXQG#SODQH/
EHWZHHQ# LQGLYLGXDO# WHVW# GLVFKDUJHV/# E\# WHPSRUDULO\# JURXQGLQJ# LW# WKURXJK# WZR# 7:3#N Ω
UHVLVWRUV# FRQQHFWHG# LQ# VHULHV1# 7KLV# SRWHQWLDO# HTXDOL]DWLRQ# FRQQHFWLRQ# VKDOO# EH

GLVFRQQHFWHG# DQG# PRYHG# DZD\# IURP# WKH# (48,30(17# RU# 6<67(0 # GXULQJ# DSSOLFDWLRQ# RI# D
WHVW#GLVFKDUJH1
8, 7KH# WHVW# PD\# EH# SHUIRUPHG# ZLWK# WKH# (48,30(17# RU# 6<67(0 # SRZHUHG# DW# DQ\# RQH# RI# LWV
120,1$/ #LQSXW#YROWDJHV#DQG#IUHTXHQFLHV1

69153516## 5DGLDWHG#5)#HOHFWURPDJQHWLF#ILHOGV


-D, 5HTXLUHPHQWV
-4, *HQHUDO
( 48,30(17 # DQG# 6<67(06 # WKDW# DUH# QRW# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06# H[FHSW


DV#VSHFLILHG#LQ#6,#EHORZ#RU#LQ#WKH# (;&/86,21#%$1' #DV#VSHFLILHG#LQ#7,#EHORZ#VKDOO#FRPSO\


ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514#M,# DW# DQ# ,0081,7<# 7(67# /(9(/ # RI# 6#92P# RYHU# WKH
IUHTXHQF\#UDQJH#;3#0+]#WR#5/8#*+]1
-5, / ,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06


/ ,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 #H[FHSW#DV#VSHFLILHG# LQ# 6,#EHORZ# RU#ZLWKLQ# WKH
(;&/86,21# %$1' # DV# VSHFLILHG# LQ# 7,# EHORZ# VKDOO# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI
69153514#M,# DW# DQ# ,0081,7<# 7(67# /(9(/ # RI# 43#92P# RYHU# WKH# IUHTXHQF\# UDQJH# ;3#0+]# WR
5/8#*+]1
-6, ( 48,30(17 #DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ
( 48,30(17 #DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ/#H[FHSW#ZLWKLQ#WKH
(;&/86,21# %$1' # DV# VSHFLILHG# LQ# 7,# EHORZ/# PD\# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI


69153514#M,#DW#DQ# ,0081,7<#7(67#/(9(/ #WKDW#LV#UHGXFHG#IURP#WKH#WHVW#OHYHO#VSHFLILHG#LQ#4,


RU# 5,# DERYH/# DV# DSSOLFDEOH/# LQ# SURSRUWLRQ# WR# WKH# DSSOLFDEOH# VSHFLILHG# YDOXH# RI# PLQLPXP
5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# 5)# ILOWHU# DWWHQXDWLRQ/# SURYLGHG# WKH# 5)# VKLHOGLQJ
HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# VSHFLILFDWLRQ# PHHWV# WKH# UHTXLUHPHQWV# VSHFLILHG# LQ
91;161534#F,#5,1


-7, ( 48,30(17 #DQG# 6<67(06 #WKDW#LQFOXGH#UHFHLYHUV#RI#5)#HOHFWURPDJQHWLF#HQHUJ\


( 48,30(17 # DQG# 6<67(06 # WKDW# LQWHQWLRQDOO\# UHFHLYH# 5)# HOHFWURPDJQHWLF# HQHUJ\# IRU# WKH
SXUSRVH# RI# WKHLU# RSHUDWLRQ# DUH# H[HPSW# IURP# WKH# (66(17,$/# 3(5)250$1&(# UHTXLUHPHQWV
RI# 69153514# M,# LQ# WKH# (;&/86,21# %$1' ># KRZHYHU/# LQ# WKH# (;&/86,21# %$1' /# WKH# (48,30(17


RU# 6<67(0# VKDOO#UHPDLQ#VDIH#DQG#WKH#RWKHU# )81&7,216 #RI#WKH# (48,30(17 #RU# 6<67(0# VKDOO


FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# VSHFLILHG# LQ# 4,# RU# 5,# DERYH/# DV# DSSOLFDEOH1# ( 48,30(17

±#6;#± 9393404052)',6##,(&+(,


DQG# 6<67(06 # VKDOO# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# VSHFLILHG# LQ# 4,# RU# 5,# DERYH/# DV
DSSOLFDEOH/#RXWVLGH#RI#WKH# (;&/86,21#%$1' 1
&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV#DQG#GHWHUPLQHG#GXULQJ#DQG#DIWHU#WKH#WHVWV#LQ
DFFRUGDQFH#ZLWK#69153514#M,1
E, 7HVWV


7KH# WHVW# PHWKRGV# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#943330706# DSSO\/# ZLWK# WKH# IROORZLQJ
DGGLWLRQV#DQG#PRGLILFDWLRQV=
4, 7KH#WHVW#IUHTXHQF\#VKDOO#EH#VZHSW#RU#VWHSSHG#IURP#;3#0+]#WR#5/8#*+]1
5, 7KH# XQLIRUP# ILHOG# FDOLEUDWLRQ# VWHSV# VSHFLILHG# LQ# 915#K,# RI# ,(&#943330706# VKDOO# EH# QR
JUHDWHU#WKDQ#4#(#RI#WKH#IXQGDPHQWDO#IUHTXHQF\1 47


-6, 7KH# WHVW# VLJQDO# VKDOO# EH# ;3# (# DPSOLWXGH# PRGXODWHG# DW# WKH# PRGXODWLRQ# IUHTXHQF\
VSHFLILHG# LQ# 7DEOH# 53</# EDVHG# XSRQ# WKH# LQWHQGHG# XVH# RI# WKH# (48,30(17# RU# 6<67(0 1
+8QPRGXODWHG#DQG#PRGXODWHG#ZDYHIRUPV#QRUPDOL]HG#WR#D#JHQHUDWRU#RXWSXW#RI#4/3#9UPV
DUH# VKRZQ# LQ# )LJXUH#4# RI# ,(&#943330706,1 48# )RU# (48,30(17# DQG# 6<67(06 # IRU# ZKLFK
WHVWLQJ# DW# 5#+]# LV# UHTXLUHG/# LW# LV# QRW# QHFHVVDU\# WR# DGGLWLRQDOO\# WHVW# DW# 4#N+]1# )RU
(48,30(17# DQG# 6<67(06 #LQWHQGHG#WR#PRQLWRU#RU#PHDVXUH#D#SK\VLRORJLFDO#SDUDPHWHU/#WKH


3+<6,2/2*,&$/# 6,08/$7,21# )5(48(1&< # UHVWULFWLRQV# VSHFLILHG# LQ# 7DEOH# 53<# VKDOO# DSSO\1
)RU# (48,30(17# DQG# 6<67(06 # LQWHQGHG# WR# FRQWURO# D# SK\VLRORJLFDO# SDUDPHWHU/# WKH
23(5$7,1*#)5(48(1&< #UHVWULFWLRQV#VSHFLILHG#LQ#7DEOH#53<#VKDOO#DSSO\1

7DEOH#53<#±#0RGXODWLRQ#IUHTXHQF\/# 3+<6,2/2*,&$/#6,08/$7,21#)5(48(1&</
DQG# 23(5$7,1*#)5(48(1&<

3 +<6,2/2*,&$/#6,08/$7,21#)5(48(1&<
0RGXODWLRQ
DQG
,QWHQGHG#XVH IUHTXHQF\
23(5$7,1*# )5(48(1&<
+]
+]
&RQWURO/#PRQLWRU#RU ?4#RU
5


PHDVXUH#D#SK\VLRORJLFDO
SDUDPHWHU !6

$OO#RWKHU 4#333 1RW#DSSOLFDEOH

-7, )RU#WKH#IUHTXHQF\#VWHS#DQG#GZHOO#PHWKRG#+&ODXVH#;#RI#,(&#943330706,= 49


7KH# PLQLPXP# GZHOO# WLPH# VKDOO# EH# EDVHG# XSRQ# WKH# WLPH# UHTXLUHG# IRU# WKH# (48,30(17# RU
6<67(0 # WR# EH# H[HUFLVHG# +LI# DSSOLFDEOH,# DQG# DGHTXDWHO\# UHVSRQG# WR# WKH# WHVW# VLJQDO1# 7KH
GZHOO# WLPH# VKDOO# EH# DW# OHDVW# 6# V# IRU# (48,30(17# DQG# 6<67(06 # WHVWHG# ZLWK# D# 5# +]
PRGXODWLRQ# IUHTXHQF\# DQG# 4# V# IRU# DOO# RWKHU# (48,30(17# DQG# 6<67(06 /# DQG# VKDOO# EH# QR
OHVV# WKDQ# WKH#UHVSRQVH# WLPH# RI# WKH# VORZHVW# UHVSRQGLQJ# )81&7,21 # SOXV# WKH# VHWWOLQJ# WLPH


RI# WKH# UDGLDWHG# 5)# ,0081,7< # WHVW# V\VWHP1# )RU# (48,30(17# DQG# 6<67(06 # WKDW# DYHUDJH
GDWD# RYHU# WLPH# IRU# ZKLFK# IDVWHU0UHVSRQGLQJ# VLJQDOV# FDQQRW# EH# XVHG# WR# GHWHUPLQH# WKH
HIIHFW# RI# WKH# WHVW# VLJQDO# RQ# WKH# (48,30(17# RU# 6<67(0 /# WKH# GZHOO# WLPH# VKDOO# EH# QR# OHVV
WKDQ# 4/5# WLPHV# WKH# DYHUDJLQJ# SHULRG1# ,I# WKH# DYHUDJLQJ# SHULRG# LV# DGMXVWDEOH/# WKH
DYHUDJLQJ# SHULRG# XVHG# WR# GHWHUPLQH# GZHOO# WLPH# VKDOO# EH# WKDW# ZKLFK# LV# H[SHFWHG# WR# EH
XVHG#PRVW#RIWHQ#LQ#FOLQLFDO#DSSOLFDWLRQ#RI#WKH# (48,30(17# RU# 6<67(0 1#)RU# (48,30(17# DQG
6<67(06 #IRU#ZKLFK#IDVWHU0UHVSRQGLQJ#VLJQDOV#FDQ#EH#XVHG#WR#GHWHUPLQH#WKH#HIIHFW#RI#WKH
WHVW# VLJQDO# RQ# WKH# (48,30(17# RU# 6<67(0 /# WKH# GZHOO# WLPH# PD\# EH# UHGXFHG# LI# WKH# IDVWHU0


UHVSRQGLQJ#VLJQDOV#DUH#PRQLWRUHG1#,Q#WKLV#FDVH/#WKH#GZHOO#WLPH#VKDOO#EH#QR#OHVV#WKDQ#WKH
UHVSRQVH#WLPH#RI#WKH#VLJQDO#RU#RI#WKH#PRQLWRULQJ#V\VWHP/#ZKLFKHYHU#LV#JUHDWHU/#SOXV#WKH
UHVSRQVH#WLPH#RI#WKH#UDGLDWHG#5)# ,0081,7< #WHVW#V\VWHP/#EXW#LQ#QR#FDVH#OHVV#WKDQ#6#V#IRU
(48,30(17# DQG# 6<67(06 # WHVWHG# ZLWK# D# 5#+]# PRGXODWLRQ# IUHTXHQF\# DQG# 4# V# IRU# DOO# RWKHU
(48,30(17# DQG# 6<67(06 1# )RU# (48,30(17# DQG# 6<67(06 # WKDW# KDYH# PXOWLSOH# LQGLYLGXDO


SDUDPHWHUV#RU#VXE0 6<67(06 /#HDFK#RI#ZKLFK#ZRXOG#\LHOG#D#GLIIHUHQW#GZHOO#WLPH/#WKH#YDOXH


XVHG#VKDOO#EH#WKH#PD[LPXP#RI#WKH#LQGLYLGXDOO\0GHWHUPLQHG#GZHOO#WLPHV1
BBBBBBBBBBB
47# 6HH#,(&#943330706=#4<<81


48# 6HH#,(&#943330706=#4<<81

49# 6HH#,(&#943330706=#4<<81

9393404052)',6##,(&+(, ±#6<#±


7KH# IUHTXHQF\# VWHS# VL]H# VKDOO# QRW# H[FHHG# 4# (# RI# WKH# IXQGDPHQWDO1# +7KH# QH[W# WHVW
IUHTXHQF\#LV#OHVV#WKDQ#RU#HTXDO#WR#WKH#SUHYLRXV#WHVW#IUHTXHQF\#WLPHV#4/341,
-8, )RU#WKH#FRQWLQXRXV#IUHTXHQF\#VZHHS#PHWKRG#+&ODXVH#;#RI#,(&#943330706,= 4:
7KH#UDWH#RI#VZHHS#VKDOO#QRW#EH#JUHDWHU#WKDQ

7/8 × 43 −6


#GHFDGHV2V
;
ZKHUH# ;# LV# WKH# GZHOO# WLPH# LQ# VHFRQGV# GHWHUPLQHG# IURP# 7,# DERYH# +WKH# GZHOO# WLPH
VSHFLILHG#DERYH#IRU#WKH#IUHTXHQF\#VWHS#DQG#GZHOO#PHWKRG#XVLQJ#D#4#(#VWHS#VL]H,1
9, 2EMHFWV#RWKHU#WKDQ#WKH# (48,30(17# RU# 6<67(0 #DQG#QHFHVVDU\#VLPXODWLRQ#HTXLSPHQW#VKDOO
QRW# EH# LQWURGXFHG# LQWR# WKH# WHVW# DUHD# RU# EHWZHHQ# WKH# ILHOG# JHQHUDWLQJ# DQWHQQD# DQG# WKH


ORFDWLRQ#RI#WKH# (48,30(17# RU# 6<67(0 #GXULQJ#WKH#XQLIRUP#ILHOG#FDOLEUDWLRQ#DQG#GXULQJ#WKH
,0081,7<# WHVW1# 1HFHVVDU\# VLPXODWLRQ# HTXLSPHQW# VKDOO# DV# PXFK# DV# SRVVLEOH# EH# VHOHFWHG
DQG#ORFDWHG#WR#PLQLPL]H#GLVUXSWLRQ#RI#WKH#XQLIRUP#ILHOG1#6SHFLDO#FDUH#VKDOO#EH#WDNHQ#ZLWK
PRQLWRULQJ# HTXLSPHQW# XVHG# WR# GHWHUPLQH# SHUIRUPDQFH/# VXFK# DV# FDPHUDV# DQG
FRQGXFWLYH#FRQQHFWLRQV#WR#WKH# (48,30(17# RU# 6<67(0 1
:, 7HVW# FRQGLWLRQV# IRU# (48,30(17# DQG# 6<67(06 # ZLWK# D# UHFHLYLQJ# VHFWLRQ# IRU# 5)


HOHFWURPDJQHWLF#HQHUJ\=
7KH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17# RU# 6<67(0 # VKDOO# EH# WXQHG# WR# WKH# SUHIHUUHG
IUHTXHQF\# RI# UHFHSWLRQ1# ,I# WKH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17# RU# 6<67(0 # KDV# QR
SUHIHUUHG# IUHTXHQF\# RI# UHFHSWLRQ/# WKH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17# RU# 6<67(0
VKDOO# EH# WXQHG# WR# WKH# FHQWUH# RI# WKH# IUHTXHQF\# UDQJH# IURP# ZKLFK# WKH# IUHTXHQF\# RI

UHFHSWLRQ#FDQ#EH#VHOHFWHG1
-;, 3 $7,(17 0FRXSOHG# FDEOHV# XVHG# GXULQJ# WKH# WHVW# VKDOO# EH# WKH# ORQJHVW# DOORZHG# E\# WKH
PDQXIDFWXUHU/# DV# VSHFLILHG# LQ# WKH# $&&203$1<,1*# '2&80(176 1# 7KH# 3$7,(17 # FRXSOLQJ
SRLQW# VKDOO# QRW# KDYH# DQ# LQWHQWLRQDO# FRQGXFWLYH# RU# FDSDFLWLYH# FRQQHFWLRQ# WR# JURXQG/
LQFOXGLQJ# WKURXJK# WKH# 3$7,(17 # SK\VLRORJLFDO# VLJQDO# VLPXODWLRQ/# LI# XVHG1# 8QLQWHQWLRQDO
FDSDFLWDQFH#EHWZHHQ#WKH# 3$7,(17 #FRXSOLQJ#SRLQW#DQG#JURXQG#VKRXOG#EH#QR#JUHDWHU#WKDQ


583#S)1#7KH#LQWHUIDFH#EHWZHHQ#WKH# 3$7,(17 #SK\VLRORJLFDO#VLJQDO#VLPXODWLRQ/#LI#XVHG/#DQG


WKH# (48,30(17# RU# 6<67(0 # VKDOO# EH# ORFDWHG# ZLWKLQ# 3/4#P# RI# WKH# YHUWLFDO# SODQH# RI# WKH
XQLIRUP#ILHOG#DUHD#LQ#RQH#RULHQWDWLRQ#RI#WKH# (48,30(17# RU# 6<67(0 1 4;
-<, / $5*( /# 3(50$1(17/< 0 ,167$//('#(48,30(17# DQG# 6<67(06 #WKDW#DUH#FRQVWUXFWHG#LQ#VXFK#D


ZD\# WKDW# VLPXODWHG# RSHUDWLRQ# RI# VXE0 6<67(06 # LV# QRW# IHDVLEOH# DUH# H[HPSW# IURP# WKH
WHVWLQJ# UHTXLUHPHQWV# VSHFLILHG# E\# ,(&#9433307061# ,I# WKLV# H[HPSWLRQ# LV# XVHG/# VXFK
/$5*( /# 3(50$1(17/< 0 ,167$//('# (48,30(17# DQG# 6<67(06 # VKDOO# EH# W\SH# WHVWHG# HLWKHU# DW
RQH# LQVWDOODWLRQ# VLWH# RU# RQ# DQ# RSHQ# DUHD# WHVW# VLWH/# XVLQJ# WKH# DPELHQW# 5)# VRXUFHV# +H1J1
UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV/# ZDONLH0WDONLHV/# RWKHU# OHJDO# WUDQVPLWWHUV,# WKDW# RFFXU


LQ# D# W\SLFDO# KHDOWK# FDUH# HQYLURQPHQW1# ,Q# DGGLWLRQ/# WHVWLQJ# VKDOO# EH# SHUIRUPHG# LQ# WKH
UDQJH#;3#0+]#WR#5/8#*+]#DW#IUHTXHQFLHV#GHVLJQDWHG#E\#WKH#,78#IRU#,60#XVH1#7KH#SRZHU
RI/#DQG#GLVWDQFH#IURP/#WKH#VRXUFH#VKDOO#EH#DGMXVWHG# WR# SURYLGH#WKH# DSSOLFDEOH# WHVW# OHYHO
VSHFLILHG#LQ#D,#DERYH/#ZLWK#WKH#H[FHSWLRQ#WKDW#WKH#DFWXDO#PRGXODWLRQV#PD\#EH#XVHG#+H1J1
IRU#UDGLR#+FHOOXODU2FRUGOHVV,#WHOHSKRQHV/#ZDONLH0WDONLHV,1#7KLV#WHVWLQJ#DOORZDQFH#GRHV#QRW
DIIHFW#WKH#UHTXLUHPHQWV#VSHFLILHG#LQ#691535191#+6HH#DOVR#91;161534#K,1,
43, 7KH# WHVW# PD\# EH# SHUIRUPHG# ZLWK# WKH# (48,30(17# RU# 6<67(0 # SRZHUHG# DW# DQ\# RQH# RI# LWV
120,1$/ #LQSXW#YROWDJHV#DQG#IUHTXHQFLHV1



BBBBBBBBBBB


4:# 6HH#,(&#943330706=#4<<81

4; 6HH#)LJXUH#$$$14#IRU#DQ#H[DPSOH#FDEOH#DUUDQJHPHQW1

±#73#± 9393404052)',6##,(&+(,


69153517## (OHFWULFDO#IDVW#WUDQVLHQWV#DQG#EXUVWV

-D, 5HTXLUHPHQWV
( 48,30(17 # DQG# 6<67(06 #VKDOO#FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514#M,# DW# DQ# ,0081,7<
7(67# /(9(/ #RI#±5#N9#IRU#D1F1#DQG#G1F1#SRZHU#OLQHV#DQG#±4#N9#IRU#VLJQDO# DQG#LQWHUFRQQHFWLQJ
FDEOHV1# 6LJQDO# DQG#LQWHUFRQQHFWLQJ#FDEOHV#VSHFLILHG# WR#EH# +L1H1# UHVWULFWHG# WR,# OHVV# WKDQ# 6#P


LQ# OHQJWK#E\# WKH#PDQXIDFWXUHU#RI# WKH# (48,30(17 # RU# 6<67(0# DQG# DOO# 3$7,(17 0FRXSOHG# FDEOHV
DUH# QRW# WHVWHG# GLUHFWO\1# +RZHYHU/# WKH# HIIHFWV# RI# DQ\# FRXSOLQJ# EHWZHHQ# FDEOHV# WKDW# DUH
WHVWHG#GLUHFWO\#DQG#FDEOHV#WKDW#DUH#QRW#WHVWHG#GLUHFWO\#VKDOO#EH#WDNHQ#LQWR#DFFRXQW1
&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV#DQG#GHWHUPLQHG#GXULQJ#DQG#DIWHU#WKH#WHVWV#LQ
DFFRUGDQFH#ZLWK#69153514#M,=


E, 7HVWV
7KH# WHVW# PHWKRGV# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#943330707# VKDOO# DSSO\/# ZLWK# WKH
IROORZLQJ#PRGLILFDWLRQV=
4, 3 $7,(17 0FRXSOHG#FDEOHV#RI# (48,30(17# DQG# 6<67(06 #DUH#QRW#WHVWHG#GLUHFWO\/#EXW#VKDOO#EH
DWWDFKHG# GXULQJ# WKH# WHVWLQJ# RI# SRZHU# OLQHV# DQG# RI# DOO# RWKHU# FDEOHV# WKDW# DUH# WHVWHG1# 7KH
HQWLUH# OHQJWK# RI# 3$7,(17 0FRXSOHG# FDEOHV/# LQFOXGLQJ# WKH# 3$7,(17 # FRXSOLQJ# SRLQW/# VKDOO# EH


ZLWKLQ# WKH# WHVW# HQYLURQPHQW1# $V# PXFK# DV# SRVVLEOH/# 3$7,(17 0FRXSOHG# FDEOHV# VKDOO# EH
DUUDQJHG#DV# LQ# 1250$/# 86( 1# 7KH\# VKDOO# QRW# EH# DUUDQJHG# VR# WKDW# FRXSOLQJ# WR# WKHP# IURP
FDEOHV# WKDW# DUH# WHVWHG# GLUHFWO\# LV# JUHDWHU# WKDQ# WKH# FRXSOLQJ# WKDW# ZRXOG# EH# H[SHFWHG# LQ
1250$/#86( 1

5, )RU# ,17(51$//<# 32:(5(' # (48,30(17# DQG# 6<67(06 # ZLWKRXW# WKH# RSWLRQ# RI# D1F1# RU# G1F1

SRZHU# LQSXWV/# DOO# FDEOHV# DUH# WHVWHG# H[FHSW# 3$7,(17 0FRXSOHG# FDEOHV# DQG# VLJQDO# DQG
LQWHUFRQQHFWLQJ#FDEOHV#VSHFLILHG#WR#EH#OHVV#WKDQ#6#P#LQ#OHQJWK1#,I#VXFK#DQ# (48,30(17# RU
6<67(0 # KDV# RQO\# 3$7,(17 0FRXSOHG# FDEOHV# DQG# VLJQDO# DQG# LQWHUFRQQHFWLQJ# FDEOHV
VSHFLILHG#WR#EH#OHVV#WKDQ#6#P#LQ#OHQJWK/#WKLV#WHVW#GRHV#QRW#DSSO\1
-6, 3 $7,(17 0FRXSOHG# SDUWV# RI# (48,30(17# DQG# 6<67(06 # VKDOO# EH# WHUPLQDWHG# GXULQJ# WKH# WHVW
DV#VSHFLILHG#EHORZ1


± )RU# 3$7,(17 # FRXSOLQJ# SRLQWV# WKDW# GR# QRW# KDYH# D# FRQGXFWLYH# FRQWDFW/# WKH# 3$7,(17
FRXSOLQJ#SRLQW#VKDOO#EH#WHUPLQDWHG#ZLWK#WKH#DUWLILFLDO#KDQG#DQG#5&#HOHPHQW#VSHFLILHG
LQ# &,635#49041# 7KH# PHWDO# IRLO# RI# WKH# DUWLILFLDO# KDQG# VKDOO# EH# VL]HG# DQG# SODFHG# WR
VLPXODWH#WKH#DSSUR[LPDWH#DUHD#DQG#ORFDWLRQ#RI# 3$7,(17# FRXSOLQJ#LQ# 1250$/#86( 1#7KH
PHWDO#IRLO# RI#WKH# DUWLILFLDO#KDQG#VKDOO# EH#FRQQHFWHG# WR#WHUPLQDO# 0#RI# WKH# 5&# HOHPHQW


DQG# WKH# RWKHU# WHUPLQDO# RI# WKH# 5&# HOHPHQW# VKDOO# EH# FRQQHFWHG# WR# WKH# JURXQG
UHIHUHQFH#SODQH1
± )RU# 3$7,(17 #FRXSOLQJ#SRLQWV#WKDW#KDYH#FRQGXFWLYH#FRQWDFW#WR#WKH# 3$7,(17 /#WHUPLQDO#0
RI#WKH# 5&# HOHPHQW# +VHH# &,635# 4904,# VKDOO# EH# FRQQHFWHG# GLUHFWO\# WR# WKH# FRQGXFWLYH


3$7,(17 #FRQQHFWLRQ/#DQG#WKH#RWKHU#WHUPLQDO#RI#WKH#5&#HOHPHQW#VKDOO#EH#FRQQHFWHG#WR
WKH#JURXQG#UHIHUHQFH#SODQH1#,I#QRUPDO#RSHUDWLRQ#RI#WKH# (48,30(17# RU# 6<67(0 #FDQQRW
EH# YHULILHG# ZLWK# WHUPLQDO# 0# FRQQHFWHG# WR# WKH# FRXSOLQJ# SRLQW/# DQ# LQVXODWLQJ# PDWHULDO
ZLWK# D# PD[LPXP# WKLFNQHVV# RI# 8#PP# PD\# EH# DSSOLHG# EHWZHHQ# WKH# PHWDO# IRLO# RI# WKH
DUWLILFLDO# KDQG# +VHH# &,635# 4904,# DQG# WKH# 3$7,(17 # FRXSOLQJ# SRLQW1# ,Q# WKLV# FDVH/# WKH
PHWDO# IRLO# RI# WKH# DUWLILFLDO# KDQG# VKDOO# EH# VL]HG# DQG# SODFHG# WR# VLPXODWH# WKH
DSSUR[LPDWH# DUHD# DQG# ORFDWLRQ# RI# 3$7,(17# FRXSOLQJ# LQ# 1250$/# 86( /# DQG# WHUPLQDO# 0
RI# WKH# 5&# HOHPHQW# VKDOO# EH# FRQQHFWHG# WR# WKH# PHWDO# IRLO# EXW# QRW# WR# WKH# 3$7,(17


FRXSOLQJ# SRLQW1# 7KH# RWKHU# WHUPLQDO# RI# WKH# 5&# HOHPHQW# VKDOO# EH# FRQQHFWHG# WR# WKH
JURXQG#UHIHUHQFH#SODQH#LQ#DOO#FDVHV1
± )RU# (48,30(17# DQG# 6<67(06 #WKDW#KDYH#PXOWLSOH# 3$7,(17 #FRXSOLQJ# SRLQWV# LQWHQGHG# WR
EH# FRQQHFWHG# WR# D# VLQJOH# 3$7,(17 /# HDFK# 3$7,(17 # FRXSOLQJ# SRLQW# DQG# HDFK# 3$7,(17 0
FRXSOHG# SDUW# VKDOO# KDYH# DQ# DUWLILFLDO# KDQG# DSSOLHG# DV# VSHFLILHG# DERYH1# 7KH# DUWLILFLDO


KDQGV# VKDOO# EH# FRQQHFWHG# WR# D# VLQJOH# FRPPRQ# FRQQHFWLRQ# DQG# WKLV# FRPPRQ
FRQQHFWLRQ# VKDOO# EH# FRQQHFWHG# WR# WHUPLQDO# 0# RI# WKH# 5&# HOHPHQW/# DV# VSHFLILHG# LQ
&,635# 49041# )RU# (48,30(17 # DQG# 6<67(06 # LQWHQGHG# WR# EH# FRQQHFWHG# WR# PXOWLSOH
3$7,(176 /# DUWLILFLDO# KDQGV# VKDOO# EH# DSSOLHG# DV# VSHFLILHG# DERYH# DQG# D# VHSDUDWH
FRPPRQ# FRQQHFWLRQ# DQG# 5&# HOHPHQW# VKDOO# EH# XVHG# IRU# HDFK# 3$7,(17 # IRU# ZKLFK# WKH


FDSDFLWLYH#FRXSOLQJ#HIIHFW#DQG#5)#LPSHGDQFH#LV#WR#EH#VLPXODWHG1#7KH#RWKHU#WHUPLQDO
RI#WKH#5&#HOHPHQW+V,#VKDOO#EH#FRQQHFWHG#WR#WKH#JURXQG#UHIHUHQFH#SODQH#LQ#DOO#FDVHV1

9393404052)',6##,(&+(, ±#74#±


± ,I# D# 3$7,(17 # SK\VLRORJLFDO# VLPXODWRU# LV# LQWHQGHG# WR# VLPXODWH# 3$7,(17 # SK\VLRORJLFDO
VLJQDOV# DQG# DOVR# WKH# FDSDFLWLYH# FRXSOLQJ# HIIHFW# DQG# 5)# LPSHGDQFH# RI# WKH# 3$7,(17 /
WKH# 3$7,(17 # SK\VLRORJLFDO# VLPXODWRU# PXVW# SURYLGH/# EHWZHHQ# WKH# FRXSOLQJ# SRLQW+V,
DQG# WKH# JURXQG# UHIHUHQFH# SODQH/# DQ# LPSHGDQFH# HTXLYDOHQW# WR# WKDW# RI# WKH# DUWLILFLDO
KDQG#DQG#5&#HOHPHQW#DV#VSHFLILHG#DERYH1
-7, + $1' 0 +(/'#(48,30(17 #DQG#SDUWV#RI# (48,30(17 #LQWHQGHG#WR#EH#KDQG0KHOG#LQ# 1250$/#86(


VKDOO# EH# WHVWHG# ZLWK# DQ# DUWLILFLDO# KDQG# DSSOLHG# DV# VSHFLILHG# LQ# &,635#4904/# VL]HG# DQG
SODFHG#WR#VLPXODWH#WKH#DSSUR[LPDWH#DUHD#DQG#ORFDWLRQ#RI# 23(5$725# FRXSOLQJ# LQ# 1250$/
86( 1# 7KH# PHWDO# IRLO# RI# WKH# DUWLILFLDO# KDQG# VKDOO# EH# FRQQHFWHG# WR# WHUPLQDO# 0# RI# DQ# 5&
HOHPHQW/#DV#VSHFLILHG#LQ#&,635#4904/#DQG#WKH#RWKHU#WHUPLQDO#RI#WKH#5&#HOHPHQW#VKDOO#EH
FRQQHFWHG#WR#WKH#JURXQG#UHIHUHQFH#SODQH1
8, )RU# (48,30(17# DQG# 6<67(06 # WKDW# KDYH/# IRU# SRZHU# LQSXW/# PXOWLSOH# YROWDJH# VHWWLQJV# RU


DXWRUDQJLQJ# YROWDJH# FDSDELOLW\/# WKH# WHVW# VKDOO# EH# SHUIRUPHG# DW# WKH# PLQLPXP# DQG
PD[LPXP# 5$7(' # LQSXW# YROWDJHV1# 7KH# WHVW# PD\# EH# SHUIRUPHG# ZLWK# WKH# (48,30(17# RU
6<67(0 #SRZHUHG#DW#DQ\#RQH#RI#LWV# 120,1$/ #SRZHU#IUHTXHQFLHV 1

9, )RU# (48,30(17 # DQG# 6<67(06 # ZLWK# LQWHUQDO# EDWWHU\# EDFNXS/# LW# VKDOO# EH# YHULILHG# WKDW# WKH
(48,30(17 #RU# 6<67(0 #FRQWLQXHV#RSHUDWLRQ#IURP#PDLQV#SRZHU#DIWHU#WKH#WHVWV#VSHFLILHG#LQ
WKLV#VXEFODXVH1

69153518#6XUJHV

-D, 5HTXLUHPHQWV

7KH# (48,30(17# RU# 6<67(0# VKDOO# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514#M,# DW# ,0081,7<

7(67# /(9(/6 #RI#±3/8#N9/#±4#N9#DQG#±5#N9#IRU#D1F1# SRZHU# OLQH+V,# WR# JURXQG# DQG#±3/8#N9# DQG
±4#N9# IRU# D1F1# SRZHU# OLQH+V,# WR# OLQH+V,1# $OO# RWKHU# (48,30(17# DQG# 6<67(0# FDEOHV# DUH# QRW
WHVWHG# GLUHFWO\1# 7KH# GHWHUPLQDWLRQ# RI# FRPSOLDQFH# ZLWK# WKLV# UHTXLUHPHQW# VKDOO# EH# EDVHG# RQ
WKH#UHVSRQVH#RI#WKH# (48,30(17# RU# 6<67(0/#FRQVLGHULQJ# HDFK#VXUJH# LQGLYLGXDOO\/# WDNLQJ# LQWR
DFFRXQW#WKH#HIIHFWV#RI#DQ\#FRXSOLQJ#EHWZHHQ#FDEOHV#WKDW#DUH#WHVWHG#GLUHFWO\#DQG#FDEOHV#WKDW
DUH#QRW#WHVWHG#GLUHFWO\1


&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV#DQG#GHWHUPLQHG#GXULQJ#DQG#DIWHU#WKH#WHVWV#LQ
DFFRUGDQFH#ZLWK#69153514#M,=
-E, 7HVWV
7KH# WHVW# PHWKRGV# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#943330708# IRU# WKH# FRPELQDWLRQ# ZDYH


WHVW#VKDOO#DSSO\/#ZLWK#WKH#IROORZLQJ#PRGLILFDWLRQV=
4, 2QO\# SRZHU# OLQHV# DQG# D1F1# LQSXWV# WR# D1F10WR0G1F1# FRQYHUWHUV# DQG# EDWWHU\# FKDUJHUV# DUH
WHVWHG>#KRZHYHU/#DOO# (48,30(17 #DQG# 6<67(0 #FDEOHV#VKDOO#EH#DWWDFKHG#GXULQJ#WKH#WHVW1
5, )LYH# VXUJHV# DW# HDFK# YROWDJH# OHYHO# DQG# SRODULW\# VKDOO# EH# DSSOLHG# WR# HDFK# SRZHU# OLQH# DW


HDFK#RI#WKH#IROORZLQJ#D1F1#YROWDJH#ZDYHIRUP#DQJOHV=#3ƒ#RU#4;3ƒ/#<3ƒ#DQG#5:3ƒ1
127(## :KLOH# WHVWLQJ# DW# ERWK# 3ƒ# DQG# 4;3ƒ# LV# DOORZHG/# WHVWLQJ# DW# RQO\# RQH# RI# WKHVH# WZR# SKDVH# DQJOHV/# LQ
DGGLWLRQ#WR#<3ƒ#DQG#5:3ƒ/#LV#UHTXLUHG1

-6, ( 48,30(17# DQG# 6<67(06 # WKDW# GR# QRW# KDYH# D# VXUJH# SURWHFWLRQ# GHYLFH# LQ# WKH# SULPDU\
SRZHU#FLUFXLW#PD\#EH#WHVWHG#RQO\#DW# ± 5#N9#OLQH+V,#WR#JURXQG#DQG# ± 4#N9#OLQH+V,#WR#OLQH+V,1
+RZHYHU/#LQ#FDVH#RI#GLVSXWH/#WKH# (48,30(17# RU# 6<67(0 #VKDOO#FRPSO\#DW#DOO#WKH# ,0081,7<
7(67#/(9(/6 #VSHFLILHG#LQ#69153518#D,1


-7, &ODVV# ,,# (48,30(17# DQG# 6<67(06 # ZLWKRXW# DQ\# JURXQGHG# LQWHUFRQQHFWLRQV# DUH# H[HPSW
IURP#OLQH+V,#WR#JURXQG#WHVWLQJ1
8, )RU# ,17(51$//<# 32:(5(' # (48,30(17# DQG# 6<67(06 # ZLWKRXW# WKH# RSWLRQ# RI# D1F1# RU# G1F1
SRZHU#LQSXWV/#WKLV#WHVW#GRHV#QRW#DSSO\1


9, )RU# (48,30(17# DQG# 6<67(06 # WKDW# KDYH/# IRU# SRZHU# LQSXW/# PXOWLSOH# YROWDJH# VHWWLQJV# RU
DXWRUDQJLQJ# YROWDJH# FDSDELOLW\/# WKH# WHVW# VKDOO# EH# SHUIRUPHG# DW# WKH# PLQLPXP# DQG
PD[LPXP# 5$7(' # LQSXW# YROWDJHV1# 7KH# WHVW# PD\# EH# SHUIRUPHG# ZLWK# WKH# (48,30(17# RU
6<67(0 #SRZHUHG#DW#DQ\#RQH#RI#LWV# 120,1$/ #SRZHU#IUHTXHQFLHV 1

:, )RU# (48,30(17 # DQG# 6<67(06 # ZLWK# LQWHUQDO# EDWWHU\# EDFNXS/# LW# VKDOO# EH# YHULILHG# WKDW# WKH


(48,30(17 #RU# 6<67(0 #FRQWLQXHV#RSHUDWLRQ#IURP#PDLQV#SRZHU#DIWHU#WKH#WHVWV#VSHFLILHG#LQ


WKLV#VXEFODXVH1

±#75#± 9393404052)',6##,(&+(,


69153519## &RQGXFWHG#GLVWXUEDQFHV/#LQGXFHG#E\#5)#ILHOGV

-D, 5HTXLUHPHQWV
-4, *HQHUDO
( 48,30(17# DQG# 6<67(06 #WKDW#DUH#QRW# /,)( 0 6833257,1* /#H[FHSW#DV#VSHFLILHG#LQ#6,/#7,#DQG
8,# EHORZ/# VKDOO# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514#M,# DW# DQ# ,0081,7<# 7(67# /(9(/


RI# 6#9UPV# RYHU# WKH# IUHTXHQF\# UDQJH# EHJLQQLQJ# DW# WKH# VWDUW# IUHTXHQF\# GHWHUPLQHG# DV
VSHFLILHG#LQ#9,#EHORZ#DQG#H[WHQGLQJ#WR#;3#0+]1
-5, / ,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06
/ ,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 /# H[FHSW# DV# VSHFLILHG# LQ# 6,/# 7,# DQG# 8,# EHORZ/
VKDOO#FRPSO\# ZLWK# WKH#UHTXLUHPHQWV# RI# 69153514#M,# DW# DQ# ,0081,7<# 7(67# /(9(/ # RI# 6#9UPV


RYHU#WKH#IUHTXHQF\#UDQJH#EHJLQQLQJ#DW#WKH#VWDUW#IUHTXHQF\#GHWHUPLQHG#DV#VSHFLILHG#LQ#9,
EHORZ# DQG# H[WHQGLQJ# WR# ;3#0+]/# DQG# 43# 9UPV# LQ# WKH# LQGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO
+,60,#IUHTXHQF\#EDQGV#EHWZHHQ#WKH#VWDUW#IUHTXHQF\#DQG#;3#0+]1
-6, ( 48,30(17 #DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ
( 48,30(17 #DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ/#H[FHSW#ZLWKLQ#WKH
(;&/86,21# %$1' # DV# VSHFLILHG# LQ# 7,# EHORZ/# PD\# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI


69153514#M,#DW#DQ# ,0081,7<#7(67#/(9(/ #WKDW#LV#UHGXFHG#IURP#WKH#WHVW#OHYHO#VSHFLILHG#LQ#4,
RU# 5,# DERYH/# DV# DSSOLFDEOH/# LQ# SURSRUWLRQ# WR# WKH# DSSOLFDEOH# VSHFLILHG# YDOXH# RI# PLQLPXP
5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ/# SURYLGHG# WKH# 5)# VKLHOGLQJ
HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# VSHFLILFDWLRQ# PHHWV# WKH# UHTXLUHPHQWV# VSHFLILHG# LQ
91;161534#F,#5,1

-7, ( 48,30(17 #DQG# 6<67(06 #WKDW#LQWHQWLRQDOO\#UHFHLYH#5)#HOHFWURPDJQHWLF#HQHUJ\
( 48,30(17 # DQG# 6<67(06 # WKDW# LQWHQWLRQDOO\# UHFHLYH# 5)# HOHFWURPDJQHWLF# HQHUJ\# IRU# WKH
SXUSRVH# RI# WKHLU# RSHUDWLRQ# DUH# H[HPSW# IURP# WKH# (66(17,$/# 3(5)250$1&(# UHTXLUHPHQWV
RI# 69153514# M,# LQ# WKH# (;&/86,21# %$1' ># KRZHYHU/# LQ# WKH# (;&/86,21# %$1' /# WKH# (48,30(17
RU# 6<67(0 #VKDOO#UHPDLQ#VDIH#DQG#WKH#RWKHU# )81&7,216 #RI#WKH# (48,30(17 #RU# 6<67(0#VKDOO


FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# VSHFLILHG# LQ# 4,# RU# 5,# DERYH/# DV# DSSOLFDEOH1# ( 48,30(17
DQG# 6<67(06 # VKDOO# FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# VSHFLILHG# LQ# 4,# RU# 5,# DERYH/# DV
DSSOLFDEOH/#RXWVLGH#RI#WKH# (;&/86,21#%$1' 1
-8, , 17(51$//<#32:(5('#(48,30(17
, 17(51$//<#32:(5('#(48,30(17 #WKDW#FDQQRW#EH#XVHG#GXULQJ#EDWWHU\#FKDUJLQJ/#LV#RI#OHVV


WKDQ#4#P#PD[LPXP#GLPHQVLRQ#LQFOXGLQJ#WKH#PD[LPXP#OHQJWK#RI# DOO#FDEOHV#FRQQHFWHG 4<


DQG# KDV# QR# FRQQHFWLRQ# WR# JURXQG/# WHOHFRPPXQLFDWLRQV# V\VWHPV/# DQ\# RWKHU# (48,30(17
RU# 6<67(0 #RU#D# 3$7,(17 #LV#H[HPSW#IURP#WKH#UHTXLUHPHQWV#RI#691535191
9, 6WDUW#IUHTXHQF\


7KH#VWDUW#IUHTXHQF\#+ORZHU#HQG#RI#WKH#WHVW#IUHTXHQF\#UDQJH,#XVHG#IRU#WHVWLQJ#HDFK#FDEOH
RI#WKH# (48,30(17 #RU# 6<67(0#VKDOO#EH#GHWHUPLQHG#DV#IROORZV=
−# )RU# ,17(51$//<# 32:(5(' # (48,30(17 # DQG# 6<67(06 # WKDW# FDQQRW# EH# XVHG# GXULQJ
EDWWHU\# FKDUJLQJ/# GR# QRW# KDYH# DQ# RSWLRQ# IRU# D1F1# SRZHU# LQSXW# DQG# KDYH# QR
FRQQHFWLRQ# WR# JURXQG/# WHOHFRPPXQLFDWLRQV# V\VWHPV/# DQ\# RWKHU# (48,30(17 # RU
6<67(0 # RU# D# 3$7,(17 /# WKH# VWDUW# IUHTXHQF\# VKDOO# EH# GHWHUPLQHG# IURP# )LJXUH#%14# RI
,(&#943330709/# XVLQJ# WKH# PD[LPXP# GLPHQVLRQ# RI# WKH# (48,30(17 # RU# 6<67(0/


LQFOXGLQJ#WKH#PD[LPXP#OHQJWK#RI#HDFK#FDEOH#FRQQHFWHG1 53
−# )RU#DOO#RWKHU# (48,30(17 #DQG# 6<67(06 /#WKH#VWDUW#IUHTXHQF\#VKDOO#EH#483#N+]1
&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV#DQG#GHWHUPLQHG#GXULQJ#DQG#DIWHU#WKH#WHVWV
LQ#DFFRUGDQFH#ZLWK#69153514#M1


BBBBBBBBBBB


4< 6HH#)LJXUH#$$$15#IRU#JXLGDQFH#RQ#GHWHUPLQDWLRQ#RI#WKH#PD[LPXP#GLPHQVLRQ1

53 6HH#)LJXUH#$$$15#IRU#JXLGDQFH#RQ#GHWHUPLQDWLRQ#RI#WKH#PD[LPXP#GLPHQVLRQ1

9393404052)',6##,(&+(, ±#76#±


E, 7HVWV
7KH# PHWKRG# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#943330709# VKDOO# DSSO\/# ZLWK# WKH# IROORZLQJ
PRGLILFDWLRQV=
4, 7KH#IROORZLQJ#SURYLVLRQV#RI#,(&#943330709#DUH#PRGLILHG#RU#FODULILHG= #54
-± 7KH#WHUPV#³GLUHFW#LQMHFWLRQ´#DQG#³LQMHFWLRQ#XVLQJ#D#FRXSOLQJ#DQG#GHFRXSOLQJ#QHWZRUN´


DUH# XVHG# WKURXJKRXW# ,(&# 9433307091# ,Q# WKDW# VWDQGDUG/# ³GLUHFW# LQMHFWLRQ´# PHDQV# WKDW
QR# FDSDFLWRUV# DUH# XVHG# LQ# WKH# LQMHFWLRQ# FLUFXLW1# 7KH# WHUP# %&'1%# +FRXSOLQJ# DQG
GHFRXSOLQJ# QHWZRUN,# LV# XVHG# LQ# WKLV# VWDQGDUG# WR# LQGLFDWH# WKH# QHWZRUN# WKDW# LV
DSSURSULDWH# IRU# WKH# LQGLYLGXDO# FDEOH# XQGHU# WHVW# DV# VSHFLILHG# E\# ,(&# 943330709/
ZKHWKHU#RU#QRW#WKH#FRXSOLQJ2GHFRXSOLQJ#QHWZRUN#LQFOXGHV#D#FDSDFLWRU1
-± 6XEFODXVH#9151514/#ODVW#GDVK/#GRHV#QRW#DSSO\1


-± 6XEFODXVH#91714#LV#PRGLILHG#VXFK#WKDW=
•# 7KH# FDOLEUDWLRQ# DFFXUDF\# RI# WKH# ,0081,7<# 7(67# /(9(/ # VKDOO# EH# EHWZHHQ# ±3# (
DQG#.58#(#IRU#OLQHDU#TXDQWLWLHV#RU#±3#G%#DQG#.5#G%#IRU#ORJ#TXDQWLWLHV1
•# &DOLEUDWLRQ#IRU#FXUUHQW#LQMHFWLRQ#FODPSV#VKDOO#EH#SHUIRUPHG#LQ#D#483#Ω #V\VWHP1
&DOLEUDWLRQV# VKDOO# EH# SHUIRUPHG# XVLQJ# D# IUHTXHQF\# VWHS# VL]H# QR# JUHDWHU# WKDQ


•#
4#(#RI#WKH#IXQGDPHQWDO1
-± 6XEFODXVH#:1415#LV#UHSODFHG#E\#WKH#IROORZLQJ=
•# $W# OHDVW# RQH# UHSUHVHQWDWLYH# FDEOH# RI# HDFK# )81&7,21 # RQ# WKH# (48,30(17 # RU
6<67(0 #VKDOO#EH#WHVWHG1

•# $OO# 3$7,(17 0FRXSOHG# FDEOHV# VKDOO# EH# WHVWHG/# HLWKHU# LQGLYLGXDOO\# RU# EXQGOHG/# DV
VSHFLILHG#LQ#:14141
•# 7KH#SRZHU#LQSXW#FDEOH#VKDOO#EH#WHVWHG1
•# 7KH# 327(17,$/#(48$/,=$7,21#&21'8&725# VKDOO#EH#WHVWHG1
-± 6XEFODXVH#:16# VKDOO# EH# PRGLILHG# VR# WKDW# WKH# UHGXFHG# FXUUHQW# LQMHFWHG# XQGHU# WKLV


FRQGLWLRQ# LV# JUHDWHU# WKDQ# RU# HTXDO# WR# WKH# , PD[ # VSHFLILHG/# E\# WKH# DFFXUDF\# YDOXHV# RI
EHWZHHQ# ±3# (# DQG# .58# (# IRU# OLQHDU# TXDQWLWLHV# RU# ±3# G%# DQG# .5#G%# IRU# ORJ
TXDQWLWLHV1
-± 7KH# DOWHUQDWLYH# PHWKRG# RI# :18# PD\# RQO\# EH# DSSOLHG# ZKHQ# WKHUH# LV# RQO\# RQH


FRQILJXUDWLRQ#RI#WKH# 6<67(0 1
5, &DEOHV# VHOHFWHG# IRU# WHVWLQJ# IRU# ZKLFK# D# &'1# LV# VXLWDEOH# VKDOO# KDYH# WKH# &'1# LQ# SODFH
GXULQJ# WKH# WHVW1# $OO# &'1V# WKDW# DUH# QRW# EHLQJ# XVHG# WR# LQMHFW# WKH# WHVW# VLJQDO# VKDOO# EH
WHUPLQDWHG#ZLWK#D#83#Ω #ORDG1


-6, 3 $7,(17 0FRXSOHG#FDEOHV#VKDOO#EH#WHVWHG#XVLQJ#D#FXUUHQW#FODPS1#,Q#FDVHV#ZHUH#D#FXUUHQW


FODPS#LV#QRW#VXLWDEOH/#DQ#(0#FODPS#VKDOO#EH#XVHG1#&'1V#DUH#QRW#VXLWDEOH#IRU/#DQG#VKDOO
QRW#EH#DSSOLHG#WR/# 3$7,(17 0FRXSOHG#FDEOHV1
3 $7,(17 0FRXSOHG# SDUWV# RI# (48,30(17 # DQG# 6<67(06 # VKDOO# EH# WHUPLQDWHG# GXULQJ# WKH# WHVW
DV# VSHFLILHG# EHORZ1# 1R# LQWHQWLRQDO# GHFRXSOLQJ# GHYLFH# VKDOO# EH# XVHG# EHWZHHQ# WKH
LQMHFWLRQ#SRLQW#DQG#WKH# 3$7,(17 #FRXSOLQJ#SRLQW#LQ#DOO#FDVHV1
±# )RU# 3$7,(17 # FRXSOLQJ# SRLQWV# WKDW# GR# QRW# KDYH# D# FRQGXFWLYH# FRQWDFW/# WKH# 3$7,(17


FRXSOLQJ#SRLQW#VKDOO#EH#WHUPLQDWHG#ZLWK#WKH#DUWLILFLDO#KDQG#DQG#5&#HOHPHQW#VSHFLILHG
LQ# &,635#49041# 7KH# PHWDO# IRLO# RI# WKH# DUWLILFLDO# KDQG# VKDOO# EH# VL]HG# DQG# SODFHG# WR
VLPXODWH#WKH#DSSUR[LPDWH#DUHD#DQG#ORFDWLRQ#RI# 3$7,(17# FRXSOLQJ#LQ# 1250$/#86( 1#7KH
PHWDO#IRLO#RI#WKH#DUWLILFLDO#KDQG#VKDOO# EH#FRQQHFWHG# WR#WHUPLQDO# 0#RI# WKH#5&# HOHPHQW
DQG# WKH# RWKHU# WHUPLQDO# RI# WKH# 5&# HOHPHQW# VKDOO# EH# FRQQHFWHG# WR# WKH# JURXQG
UHIHUHQFH#SODQH1


±# )RU# 3$7,(17 #FRXSOLQJ#SRLQWV#WKDW#KDYH#FRQGXFWLYH#FRQWDFW#WR#WKH# 3$7,(17 /#WHUPLQDO#0


RI#WKH# 5&#HOHPHQW#+VHH#&,635#4904,#VKDOO#EH#FRQQHFWHG# GLUHFWO\# WR# WKH# FRQGXFWLYH
3$7,(17 #FRQQHFWLRQ/#DQG#WKH#RWKHU#WHUPLQDO#RI#WKH#5&#HOHPHQW#VKDOO#EH#FRQQHFWHG#WR
WKH#JURXQG#UHIHUHQFH#SODQH1#,I#QRUPDO#RSHUDWLRQ#RI#WKH# (48,30(17 #RU# 6<67(0 #FDQQRW


BBBBBBBBBBB
54# 6HH#,(&#943330709=#4<<91

±#77#± 9393404052)',6##,(&+(,


EH#YHULILHG#ZLWK#WHUPLQDO#0#RI#WKH#DUWLILFLDO#KDQG#FRQQHFWHG#WR#WKH#FRXSOLQJ#SRLQW/#DQ
LQVXODWLQJ#PDWHULDO#ZLWK#D#PD[LPXP#WKLFNQHVV#RI#8#PP#PD\#EH#DSSOLHG#EHWZHHQ#WKH
PHWDO#IRLO#RI#WKH#DUWLILFLDO#KDQG#+VHH#&,635#4904,#DQG#WKH# 3$7,(17 #FRXSOLQJ#SRLQW1#,Q
WKLV#FDVH/#WKH# PHWDO# IRLO# RI# WKH# DUWLILFLDO#KDQG#VKDOO# EH# VL]HG# DQG# SODFHG# WR# VLPXODWH
WKH#DSSUR[LPDWH#DUHD#RI# 3$7,(17# FRXSOLQJ#LQ# 1250$/#86( /#DQG#WHUPLQDO#0#RI#WKH#5&
HOHPHQW# VKDOO# EH# FRQQHFWHG# WR# WKH# PHWDO# IRLO# EXW# QRW# WR# WKH# 3$7,(17 # FRXSOLQJ# SRLQW1
7KH# RWKHU# WHUPLQDO# RI# WKH# 5&# HOHPHQW# VKDOO# EH# FRQQHFWHG# WR# WKH# JURXQG# UHIHUHQFH


SODQH#LQ#DOO#FDVHV1
-± )RU# (48,30(17 #DQG# 6<67(06 #WKDW#KDYH#PXOWLSOH# 3$7,(17 #FRXSOLQJ#SRLQWV#LQWHQGHG#WR
EH# FRQQHFWHG# WR# D# VLQJOH# 3$7,(17 /# HDFK# 3$7,(17 # FRXSOLQJ# SRLQW# DQG# HDFK# 3$7,(17 0
FRXSOHG# SDUW# VKDOO# KDYH# DQ# DUWLILFLDO# KDQG# DSSOLHG# DV# VSHFLILHG# DERYH1# 7KH# DUWLILFLDO
KDQGV# VKDOO# EH# FRQQHFWHG# WR# D# VLQJOH# FRPPRQ# FRQQHFWLRQ# DQG# WKLV# FRPPRQ


FRQQHFWLRQ# VKDOO# EH# FRQQHFWHG# WR# WHUPLQDO# 0# RI# WKH# 5&# HOHPHQW/# DV# VSHFLILHG# LQ
&,635# 49041# )RU# (48,30(17 # DQG# 6<67(06 # LQWHQGHG# WR# EH# FRQQHFWHG# WR# PXOWLSOH
3$7,(176 /# DUWLILFLDO# KDQGV# VKDOO# EH# DSSOLHG# DV# VSHFLILHG# DERYH# DQG# D# VHSDUDWH
FRPPRQ# FRQQHFWLRQ# DQG# 5&# HOHPHQW# VKDOO# EH# XVHG# IRU# HDFK# 3$7,(17 # IRU# ZKLFK# WKH
FDSDFLWLYH#FRXSOLQJ#HIIHFW#DQG#5)#LPSHGDQFH#LV#WR#EH#VLPXODWHG1#7KH#RWKHU#WHUPLQDO
RI#WKH#5&#HOHPHQW+V,#VKDOO#EH#FRQQHFWHG#WR#WKH#JURXQG#UHIHUHQFH#SODQH#LQ#DOO#FDVHV1


±# ,I# D# 3$7,(17 # SK\VLRORJLFDO# VLPXODWRU# LV# LQWHQGHG# WR# VLPXODWH# 3$7,(17 # SK\VLRORJLFDO
VLJQDOV# DQG# DOVR# WKH# FDSDFLWLYH# FRXSOLQJ# HIIHFW# DQG# 5)# LPSHGDQFH# RI# WKH# 3$7,(17 /
WKH# 3$7,(17 # SK\VLRORJLFDO# VLPXODWRU# PXVW# SURYLGH/# EHWZHHQ# WKH# FRXSOLQJ# SRLQW+V,
DQG# WKH# JURXQG# UHIHUHQFH# SODQH/# DQ# LPSHGDQFH# HTXLYDOHQW# WR# WKDW# RI# WKH# DUWLILFLDO
KDQG#DQG#5&#HOHPHQW#DV#VSHFLILHG#DERYH1

-7, + $1' 0 +(/'#(48,30(17 #DQG#SDUWV#RI# (48,30(17 #LQWHQGHG#WR#EH#KDQG0KHOG#LQ# 1250$/#86(
VKDOO# EH# WHVWHG# ZLWK# DQ# DUWLILFLDO# KDQG# DSSOLHG# DV# VSHFLILHG# LQ# &,635# 4904/# VL]HG# DQG
SODFHG#WR#VLPXODWH#WKH#DSSUR[LPDWH#DUHD#DQG#ORFDWLRQ#RI# 23(5$725 #FRXSOLQJ#LQ# 1250$/
86( /# ZLWK# WKH# H[FHSWLRQ# WKDW# 3$7,(17 0FRXSOHG# FDEOHV# DUH# WHVWHG# DV# VSHFLILHG# LQ# 6,/
DERYH1# 7KH# PHWDO# IRLO# RI# WKH# DUWLILFLDO# KDQG# VKDOO# EH# FRQQHFWHG# WR# WHUPLQDO# 0# RI# DQ# 5&
HOHPHQW/#DV#VSHFLILHG#LQ#&,635#4904/DQG#WKH#RWKHU#WHUPLQDO#RI#WKH#5&#HOHPHQW#VKDOO#EH


FRQQHFWHG#WR#WKH#JURXQG#UHIHUHQFH#SODQH1
#-8, 3 27(17,$/# (48$/,=$7,21# &21'8&7256# VKDOO# EH# WHVWHG# XVLQJ# DQ# 04# &'11# +6HH# )LJXUH
'15#RI#,(&#9433307091,
-9, )RU# HDFK# FDEOH# LQMHFWLRQ/# WKH# WHVW# VLJQDO# VKDOO# EH# ;3#(# DPSOLWXGH# PRGXODWHG# DW# WKH
PRGXODWLRQ# IUHTXHQF\# VSHFLILHG# LQ# 7DEOH#53<# +VHH# 69153516#E,#6,/# EDVHG# XSRQ# WKH


LQWHQGHG# XVH# RI# WKH# (48,30(17 # RU# 6<67(0 1# +8QPRGXODWHG# DQG# PRGXODWHG# ZDYHIRUPV
QRUPDOL]HG# WR# D# JHQHUDWRU# RXWSXW# RI# 4/33# 9UPV# DUH# VKRZQ# LQ# )LJXUH# 7# RI
,(&#943330709,1 55#)RU# (48,30(17 # DQG# 6<67(06 # IRU# ZKLFK# WHVWLQJ# DW# 5#+]# LV# UHTXLUHG/# LW
LV#QRW#QHFHVVDU\#WR#WHVW#DGGLWLRQDOO\# DW# 4#N+]1#)RU# (48,30(17 #DQG# 6<67(06 #LQWHQGHG# WR
PRQLWRU# RU# PHDVXUH# D# SK\VLRORJLFDO# SDUDPHWHU/# WKH# 3+<6,2/2*,&$/# 6,08/$7,21


)5(48(1&< #UHVWULFWLRQV#VSHFLILHG#LQ#7DEOH#53<#VKDOO#DSSO\1#)RU# (48,30(17 #DQG# 6<67(06


LQWHQGHG# WR# FRQWURO# D# SK\VLRORJLFDO# SDUDPHWHU/# WKH# 23(5$7,1*# )5(48(1&< # UHVWULFWLRQV
VSHFLILHG#LQ#7DEOH#53<#VKDOO#DSSO\1
-:, )RU#WKH#IUHTXHQF\#VWHS#DQG#GZHOO#PHWKRG#+&ODXVH#;#RI#,(&#943330709,= 56
7KH# PLQLPXP# GZHOO# WLPH# VKDOO# EH# EDVHG# XSRQ# WKH# WLPH# UHTXLUHG# IRU# WKH# (48,30(17 # RU
6<67(0 # WR# EH# H[HUFLVHG# +LI# DSSOLFDEOH,# DQG# DGHTXDWHO\# UHVSRQG# WR# WKH# WHVW# VLJQDO1# 7KH
GZHOO# WLPH# VKDOO# EH# DW# OHDVW# 6# V# IRU# (48,30(17 # DQG# 6<67(06 # WHVWHG# ZLWK# D# 5# +]


PRGXODWLRQ# IUHTXHQF\# DQG# 4# V# IRU# DOO# RWKHU# (48,30(17 # DQG# 6<67(06 # DQG# VKDOO# EH# QR
OHVV# WKDQ# WKH#UHVSRQVH# WLPH# RI# WKH# VORZHVW# UHVSRQGLQJ# )81&7,21 # SOXV# WKH# VHWWOLQJ# WLPH
RI# WKH# FRQGXFWHG# 5)# ,0081,7< # WHVW# V\VWHP1# )RU# (48,30(17 # DQG# 6<67(06 # WKDW# DYHUDJH
GDWD# RYHU# WLPH# IRU# ZKLFK# IDVWHU0UHVSRQGLQJ# VLJQDOV# FDQQRW# EH# XVHG# WR# GHWHUPLQH# WKH
HIIHFW# RI# WKH# WHVW# VLJQDO# RQ# WKH# (48,30(17 # RU# 6<67(0 /# WKH# GZHOO# WLPH# VKDOO# EH# QR# OHVV


WKDQ# 4/5# WLPHV# WKH# DYHUDJLQJ# SHULRG1# ,I# WKH# DYHUDJLQJ# SHULRG# LV# DGMXVWDEOH/# WKH
DYHUDJLQJ# SHULRG# XVHG# WR# GHWHUPLQH# GZHOO# WLPH# VKDOO# EH# WKDW# ZKLFK# LV# H[SHFWHG# WR# EH
XVHG#PRVW#RIWHQ#LQ#FOLQLFDO#DSSOLFDWLRQ#RI#WKH# (48,30(17 #RU# 6<67(0 1#)RU# (48,30(17 #DQG
BBBBBBBBBBB


55# 6HH#,(&#943330709=#4<<9

56# 6HH#,(&#943330709=#4<<91

9393404052)',6##,(&+(, ±#78#±


6<67(06 #IRU#ZKLFK#IDVWHU0UHVSRQGLQJ#VLJQDOV#FDQ#EH#XVHG#WR#GHWHUPLQH#WKH#HIIHFW#RI#WKH
WHVW# VLJQDO# RQ# WKH# (48,30(17 # RU# 6<67(0 /# WKH# GZHOO# WLPH# PD\# EH# UHGXFHG# LI# WKH# IDVWHU0
UHVSRQGLQJ#VLJQDOV#DUH#PRQLWRUHG1#,Q#WKLV#FDVH/#WKH#GZHOO#WLPH#VKDOO#EH#QR#OHVV#WKDQ#WKH
UHVSRQVH#WLPH#RI#WKH#VLJQDO#RU#RI#WKH#PRQLWRULQJ#V\VWHP/#ZKLFKHYHU#LV#JUHDWHU/#SOXV#WKH
UHVSRQVH#WLPH#RI#WKH#FRQGXFWHG#5)# ,0081,7< #WHVW#V\VWHP/#EXW#LQ#QR#FDVH#OHVV#WKDQ#6#V
IRU# (48,30(17 # DQG# 6<67(06 # WHVWHG# ZLWK# D# 5# +]# PRGXODWLRQ# IUHTXHQF\# DQG# 4# V# IRU# DOO
RWKHU# (48,30(17 # DQG# 6<67(06 1# )RU# (48,30(17 # DQG# 6<67(06 # WKDW# KDYH# PXOWLSOH


LQGLYLGXDO#SDUDPHWHUV#RU#VXE0 6<67(06 /#HDFK#RI#ZKLFK#ZRXOG#\LHOG#D#GLIIHUHQW#GZHOO#WLPH/
WKH#YDOXH#XVHG#VKDOO#EH#WKH#PD[LPXP#RI#WKH#LQGLYLGXDOO\0GHWHUPLQHG#GZHOO#WLPHV1
7KH# IUHTXHQF\# VWHS# VL]H# VKDOO# QRW# H[FHHG# 4#(# RI# WKH# IXQGDPHQWDO1# +7KH# QH[W# WHVW
IUHTXHQF\#LV#OHVV#WKDQ#RU#HTXDO#WR#WKH#SUHYLRXV#WHVW#IUHTXHQF\#WLPHV#4/341,
-;, )RU#WKH#FRQWLQXRXV#IUHTXHQF\#VZHHS#PHWKRG#+&ODXVH#;#RI#,(&#943330709,= 57


#
7KH#UDWH#RI#VZHHS#VKDOO#QRW#EH#JUHDWHU#WKDQ

7/8 × 43 −6
#GHFDGHV2V
;
ZKHUH# ;# LV# WKH# GZHOO# WLPH# LQ# VHFRQGV# GHWHUPLQHG# IURP# :,# DERYH# +WKH# GZHOO# WLPH


VSHFLILHG#DERYH#IRU#WKH#IUHTXHQF\#VWHS#DQG#GZHOO#PHWKRG#XVLQJ#D#4#(#VWHS#VL]H,1
<, 7HVW# FRQGLWLRQV# IRU# (48,30(17 # DQG# 6<67(06 # ZLWK# D# UHFHLYLQJ# VHFWLRQ# IRU# 5)
HOHFWURPDJQHWLF#HQHUJ\=
7KH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17 # RU# 6<67(0 # VKDOO# EH# WXQHG# WR# WKH# SUHIHUUHG
IUHTXHQF\# RI# UHFHSWLRQ1# ,I# WKH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17 # RU# 6<67(0 # KDV# QR

SUHIHUUHG# IUHTXHQF\# RI# UHFHSWLRQ/# WKH# UHFHLYLQJ# VHFWLRQ# RI# WKH# (48,30(17 # RU# 6<67(0
VKDOO# EH# WXQHG# WR# WKH# FHQWUH# RI# WKH# IUHTXHQF\# UDQJH# IURP# ZKLFK# WKH# IUHTXHQF\# RI
UHFHSWLRQ#FDQ#EH#VHOHFWHG1
43, 7KH# WHVW# PD\# EH# SHUIRUPHG# ZLWK# WKH# (48,30(17 # RU# 6<67(0 # SRZHUHG# DW# DQ\# RQH# RI# LWV
120,1$/ #SRZHU#YROWDJHV#DQG#IUHTXHQFLHV1


6915351: 9ROWDJH#GLSV/#VKRUW#LQWHUUXSWLRQV#DQG#YROWDJH#YDULDWLRQV#RQ#SRZHU#VXSSO\#LQSXW
OLQHV

-D, 5HTXLUHPHQWV
4, ( 48,30(17# DQG # 6<67(06 # ZLWK# D# 5$7(' # LQSXW# SRZHU# RI# 4# N9$# RU# OHVV# DQG# DOO# /,)( 0


6833257,1* # (48,30(17# DQG # 6<67(06 #VKDOO#FRPSO\#ZLWK# WKH#UHTXLUHPHQWV# RI# 69153514# M,


DW# WKH# ,0081,7<# 7(67# /(9(/6 # VSHFLILHG# LQ# 7DEOH# 5431# )RU# (48,30(17# DQG # 6<67(06 # WKDW
DUH# QRW# /,)( 0 6833257,1* # DQG# IRU# ZKLFK# WKH# 5$7(' # LQSXW# SRZHU# LV# JUHDWHU# WKDQ# 4#N9$
DQG#WKH# 5$7(' #LQSXW#FXUUHQW#LV#OHVV#WKDQ#RU#HTXDO#WR#49#$#SHU#SKDVH/#GHYLDWLRQ#IURP#WKH
UHTXLUHPHQWV# RI# 69153514# M,# LV# DOORZHG# DW# WKH# ,0081,7<# 7(67# /(9(/6 # VSHFLILHG# LQ


7DEOH#543/# SURYLGHG# WKH# (48,30(17# RU # 6<67(0# UHPDLQV# VDIH/# H[SHULHQFHV# QR


FRPSRQHQW# IDLOXUHV# DQG# LV# UHVWRUDEOH# WR# WKH# SUH0WHVW# VWDWH# ZLWK# 23(5$725 # LQWHUYHQWLRQ1
'HWHUPLQDWLRQ# RI# FRPSOLDQFH# LV# EDVHG# XSRQ# SHUIRUPDQFH# RI# WKH# (48,30(17# RU # 6<67(0
GXULQJ#DQG#DIWHU#DSSOLFDWLRQ#RI#WKH#WHVW#VHTXHQFH1#( 48,30(17# DQG #6<67(06 #WKDW#DUH#QRW
/,)( 0 6833257,1* # DQG# IRU# ZKLFK# WKH# 5$7(' # LQSXW# FXUUHQW# H[FHHGV# 49#$# SHU# SKDVH# DUH
H[HPSW#IURP#WKH#WHVWLQJ#VSHFLILHG#LQ#7DEOH#5431
-5, ( 48,30(17# DQG # 6<67(06 # DUH# DOORZHG# D# GHYLDWLRQ# IURP# WKH# UHTXLUHPHQWV# RI# 69153514# M,


DW# WKH# ,0081,7<# 7(67# /(9(/ # VSHFLILHG# LQ# 7DEOH# 544/# SURYLGHG# WKH# (48,30(17# RU # 6<67(0
UHPDLQV#VDIH/#H[SHULHQFHV#QR#FRPSRQHQW#IDLOXUHV#DQG#LV#UHVWRUDEOH#WR#WKH#SUH0WHVW#VWDWH
ZLWK# 23(5$725 # LQWHUYHQWLRQ 1# 'HWHUPLQDWLRQ# RI# FRPSOLDQFH# LV# EDVHG# XSRQ# SHUIRUPDQFH
RI#WKH# (48,30(17# RU #6<67(0#GXULQJ#DQG#DIWHU#DSSOLFDWLRQ#RI#WKH#WHVW#VHTXHQFH1
/ ,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 #IRU#ZKLFK#WKLV#DOORZDQFH#IRU#D# GHYLDWLRQ#IURP


WKH# UHTXLUHPHQWV# RI# 69153514# M,# LV# XVHG# VKDOO# SURYLGH# DQ# DODUP# FRPSO\LQJ# ZLWK
DSSOLFDEOH# LQWHUQDWLRQDO# VWDQGDUGV# WR# LQGLFDWH# FHVVDWLRQ# RU# LQWHUUXSWLRQ# RI# DQ# LQWHQGHG
RSHUDWLRQ#UHODWHG#WR# (66(17,$/#3(5)250$1&( 1


BBBBBBBBBBB
57# 6HH#,(&#943330709=#4<<91

±#79#± 9393404052)',6##,(&+(,


7DEOH#543#±#, 0081,7<#7(67#/(9(/6 #IRU#YROWDJH#GLSV

9ROWDJH#WHVW#OHYHO 9ROWDJH#GLS 'XUDWLRQ


(#8 7 (#8 7 SHULRGV

?8 !<8 3/8


73 93 8
:3 63 58
127( 8 7 #LV#WKH#D1F1#PDLQV#YROWDJH#SULRU#WR#DSSOLFDWLRQ#RI#WKH#WHVW#OHYHO1


7DEOH#544#±#, 0081,7<#7(67#/(9(/ #IRU#YROWDJH#LQWHUUXSWLRQ

9ROWDJH#WHVW#OHYHO 9ROWDJH#GLS 'XUDWLRQ


(#8 7 (#8 7 VHFRQGV
?8 !<8 8


127( 8 7 #LV#WKH#D1F1#PDLQV#YROWDJH#SULRU#WR#DSSOLFDWLRQ#RI#WKH#WHVW#OHYHO1

E, 7HVWV

7KH# WHVW# PHWKRGV# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#9433307044# VKDOO# DSSO\/# ZLWK# WKH
IROORZLQJ#PRGLILFDWLRQV=
4, 0XOWLSOH#SKDVH# (48,30(17# DQG #6<67(06 #VKDOO#EH#WHVWHG#RQH#SKDVH#DW#D#WLPH1
5, 7HVW#YROWDJH#FKDQJHV# VKDOO# EH# VWHS# FKDQJHV# DQG# VWDUW# DW# D# ]HUR# FURVVLQJ1# )RU# PXOWLSOH
SKDVH# (48,30(17# DQG # 6<67(06 /# WKH# ]HUR# FURVVLQJ# VKDOO# EH# UHIHUHQFHG# WR# WKH# SKDVH
XQGHU#WHVW1


6, ( 48,30(17# DQG # 6<67(06 # ZLWK# D# G1F1# SRZHU# LQSXW# LQWHQGHG# IRU# XVH# ZLWK# D1F10WR0G1F1
FRQYHUWHUV# VKDOO# EH# WHVWHG# XVLQJ# D# FRQYHUWHU# WKDW# PHHWV# WKH# VSHFLILFDWLRQV# RI# WKH
PDQXIDFWXUHU# RI# WKH# (48,30(17# RU # 6<67(0 1# 7KH# ,0081,7<# 7(67# /(9(/6 # VKDOO# EH# DSSOLHG
WR#WKH#D1F1#SRZHU#LQSXW#RI#WKH#FRQYHUWHU1


7, )RU# (48,30(17# DQG # 6<67(06 # WKDW# KDYH/# IRU# SRZHU# LQSXW/# PXOWLSOH# YROWDJH# VHWWLQJV# RU
DXWRUDQJLQJ# YROWDJH# FDSDELOLW\/# WKH# WHVW# VKDOO# EH# SHUIRUPHG# DW# WKH# PLQLPXP# DQG
PD[LPXP# 5$7(' # LQSXW# YROWDJHV1# 7KH# WHVW# VKDOO# EH# SHUIRUPHG# DW# WKH# PLQLPXP# 5$7('
SRZHU#IUHTXHQF\1
8, )RU# (48,30(17# DQG # 6<67(06 # ZLWK# LQWHUQDO# EDWWHU\# EDFNXS/# LW# VKDOO# EH# YHULILHG# WKDW# WKH


(48,30(17# RU # 6<67(0 # UHVXPHV# RSHUDWLRQ# IURP# PDLQV# SRZHU# DIWHU# WKH# WHVWV# VSHFLILHG# LQ
7DEOHV#543#DQG#5441

-6915351;## 0DJQHWLF#ILHOGV

6915351;14## 3RZHU#IUHTXHQF\#PDJQHWLF#ILHOGV

-D, 5HTXLUHPHQWV


( 48,30(17 # DQG# 6<67(06 #VKDOO#FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514#M,# DW# DQ# ,0081,7<
7(67#/(9(/ #RI#6#$2P1

&RPSOLDQFH#LV#FKHFNHG#E\#WKH#IROORZLQJ#WHVWV#DQG#GHWHUPLQHG#GXULQJ#DQG#DIWHU#WKH#WHVWV#LQ
DFFRUGDQFH#ZLWK#69153514#M,1


E, 7HVWV
7KH# PHWKRGV# DQG# HTXLSPHQW# VSHFLILHG# E\# ,(&#94333070;# VKDOO# DSSO\/# ZLWK# WKH# IROORZLQJ
PRGLILFDWLRQV=


9393404052)',6##,(&+(, ±#7:#±


-4, 2QO\#WKH#FRQWLQXRXV#ILHOG#WHVW#VKDOO#EH#SHUIRUPHG1
−# 7KH# WHVW# VKDOO# EH# SHUIRUPHG# DW# ERWK# 83#+]# DQG# 93#+]/# ZLWK# WKH# H[FHSWLRQ# WKDW
(48,30(17 # DQG# 6<67(06 # 5$7(' # IRU#XVH#RQO\# DW# RQH# RI# WKHVH# IUHTXHQFLHV# QHHG# RQO\
EH# WHVWHG# DW# WKDW# IUHTXHQF\1# ,Q# HLWKHU# FDVH/# GXULQJ# WKH# WHVW/# WKH# (48,30(17 # RU
6<67(0 #VKDOO#EH#SRZHUHG#DW#WKH#VDPH#IUHTXHQF\#DV#WKH#DSSOLHG#PDJQHWLF#ILHOG1

−# ,I# WKH# (48,30(17 # RU# 6<67(0 # LV# ,17(51$//<# 32:(5(' # RU# SRZHUHG# IURP# DQ# H[WHUQDO


G1F1# VXSSO\/# WKH# WHVW# VKDOO# EH# SHUIRUPHG# DW# ERWK# 83#+]# DQG# 93#+]/# ZLWK# WKH
H[FHSWLRQ# WKDW# (48,30(17 # DQG# 6<67(06 # LQWHQGHG# IRU# XVH# RQO\# LQ# DUHDV# VXSSOLHG# DW
RQH#RI#WKHVH#IUHTXHQFLHV#QHHG#EH#WHVWHG#RQO\#DW#WKDW#IUHTXHQF\1
5, 7KH# WHVW# PD\# EH# SHUIRUPHG# ZLWK# WKH# (48,30(17 # RU# 6<67(0 # SRZHUHG# DW# DQ\# RQH# RI# LWV
120,1$/ #SRZHU#YROWDJHV1


-6915351;15## 3XOVHG#PDJQHWLF#ILHOGV

1R#UHTXLUHPHQWV#DSSO\1

-6915351;16## 'DPSHG#RVFLOODWRU\#PDJQHWLF#ILHOGV


1R#UHTXLUHPHQWV#DSSO\1

-6915351<## &RQGXFWHG#GLVWXUEDQFHV#LQ#WKH#UDQJH#3#+]#WR#483#N+]

1R#UHTXLUHPHQWV#DSSO\1

-691535143## 2VFLOODWRU\#ZDYHV

1R#UHTXLUHPHQWV#DSSO\1

-691535144## +DUPRQLFV/#LQWHUKDUPRQLFV#LQFOXGLQJ#PDLQV#VLJQDOOLQJ#DW#D1F1#SRZHU#SRUW

1R#UHTXLUHPHQWV#DSSO\1


-691535145## 5LSSOH#RQ#G1F1#SRZHU#VXSSO\

1R#UHTXLUHPHQWV#DSSO\1


-691535146## 8QEDODQFH

1R#UHTXLUHPHQWV#DSSO\1

691535147## 9DULDWLRQV#RI#SRZHU#IUHTXHQF\


7KH#UHTXLUHPHQWV#RI#431515#RI#,(&#9393404#DSSO\1

6(&7,216#6,;#72#7(1#±#127#86('




±#7;#± 9393404052)',6##,(&+(,


$QQH[#$$$
+LQIRUPDWLYH,

*HQHUDO#JXLGDQFH#DQG#UDWLRQDOH


6XEFODXVH#41534

7KH# VFRSH# RI# WKLV# VWDQGDUG# LQFOXGHV# ,1)250$7,21# 7(&+12/2*<# (48,30(17 # +,7(,# XVHG# LQ
0(',&$/# (/(&75,&$/# 6<67(06 # WKURXJK# WKH# GHILQLWLRQ# RI# 0(',&$/# (/(&75,&$/# 6<67(06 1# 7KLV
VWDQGDUG# VKRXOG# QRW# EH# DSSOLHG/# ZLWKRXW# PRGLILFDWLRQ/# WR# LPSODQWDEOH# 0(',&$/# (/(&75,&$/


(48,30(17 1

(OHFWULFDO2HOHFWURQLF# LQIUDVWUXFWXUH# +H1J1# H[LVWLQJ# ORFDO# DUHD# QHWZRUNV/# WHOHFRPPXQLFDWLRQV


QHWZRUNV/# SRZHU# QHWZRUNV,# QHHG# QRW# EH# WHVWHG# IRU# (0&# LQ# DFFRUGDQFH# ZLWK# WKLV# VWDQGDUG# DV
SDUW# RI# D# 0(',&$/# (/(&75,&$/# 6<67(01# +RZHYHU/# WKH# HIIHFWV# RI# VXFK# HOHFWULFDO2HOHFWURQLF# LQIUD0
VWUXFWXUH#VKRXOG#EH#FRQVLGHUHG#DV#SDUW#RI#D#ULVN#DVVHVVPHQW#LQ#DFFRUGDQFH#ZLWK#,(&#939340407#RU
,62# 47<:4/# DQG# HOHFWULFDO2HOHFWURQLF# LQIUDVWUXFWXUH# LQWHQGHG# WR# EH# XVHG# DV# SDUW# RI# D# 0(',&$/


(/(&75,&$/# 6<67(0 # VKRXOG# EH# VLPXODWHG# GXULQJ# WHVWLQJ1# (TXLSPHQW# SURYLGHG# E\# WKH
PDQXIDFWXUHU# RI# WKH# 0(',&$/# (/(&75,&$/# 6<67(0# DQG# LQWHQGHG# WR# EH# FRQQHFWHG# WR# WKH# 6<67(0
E\# ZD\# RI# H[LVWLQJ# HOHFWULFDO2HOHFWURQLF# LQIUDVWUXFWXUH# VKRXOG# PHHW# WKH# UHTXLUHPHQWV# RI# WKLV
VWDQGDUG1# ,I# ORFDO# DUHD# QHWZRUNV# RU# WHOHFRPPXQLFDWLRQV# QHWZRUNV# DUH# VXSSOLHG# DV# SDUW# RI# D
0(',&$/#(/(&75,&$/#6<67(0 #E\#WKH#PDQXIDFWXUHU#RI#WKH# 6<67(0 /#WKH\#VKRXOG#EH#WHVWHG#IRU#(0&

DV#VSHFLILHG#LQ#WKLV#VWDQGDUG/#DV#SDUW#RI#WKH# 6<67(01

6XEFODXVH#51535

7KH#,(9#GHILQLWLRQ# KDV# EHHQ#PRGLILHG#LQ#WKLV#VWDQGDUG#E\# UHSODFLQJ#³DQ\# GHYLFH/# HTXLSPHQW# RU


V\VWHP´#ZLWK#³DQ# (48,30(17# RU# 6<67(0´#DQG#E\#SULQWLQJ#% '(*5$'$7,21 %#LQ# 60$//#&$3,7$/6 1


6XEFODXVH#51536

7KH#,(9#GHILQLWLRQ#KDV#EHHQ#PRGLILHG#IRU#WKLV#VWDQGDUG#E\#UHYLVLQJ#WKH#QRWH#WR#PDNH#LW#HDVLHU#WR
XQGHUVWDQG1#7KH#QRWH#DSSHDUV#LQ#,(9#494037049#DV#IROORZV=


127( )RU#WKH#,78#DQG#LQ#&KDSWHU#:45/#WKH#WHUP#³HIIHFWLYH#UDGLDWHG#SRZHU´#ZLWKRXW#TXDOLILFDWLRQ#LV#XVHG#RQO\#ZKHQ
WKH#UHIHUHQFH#DQWHQQD#LV#D#KDOI0ZDYH#GLSROH1

6XEFODXVH#51537

7KH# ,(9# GHILQLWLRQ# KDV# EHHQ# PRGLILHG# IRU# WKLV# VWDQGDUG# E\# SULQWLQJ# GHILQHG# WHUPV# LQ # 60$//


&$3,7$/6 1

6XEFODXVH#51538

,Q#WKLV#&ROODWHUDO#6WDQGDUG#IRU# 0(',&$/#(/(&75,&$/ # (48,30(17 #DQG# 6<67(06 /#LW#LV#LQDSSURSULDWH


WR# LPSO\# WKDW# DQ# (/(&7520$*1(7,&# ',6785%$1&( # PLJKW# %DGYHUVHO\# DIIHFW# OLYLQJ# +RU# LQHUW,
PDWWHU1%# $V# D# FRQVHTXHQFH/# LQ# DQ# RWKHUZLVH# XQFKDQJHG# WH[W/# WKLV# SKUDVH# RI# ,(9#GHILQLWLRQ
494034038#KDV#QRW#EHHQ#UHWDLQHG1#7KH#,(9#GHILQLWLRQ#KDV#DOVR#EHHQ#PRGLILHG#IRU# WKLV#VWDQGDUG


E\#SULQWLQJ#GHILQHG#WHUPV#LQ #60$//#&$3,7$/6 1

6XEFODXVH#5153:

7KH# ,(9# GHILQLWLRQ# KDV# EHHQ# PRGLILHG# IRU# WKLV# VWDQGDUG# E\# SULQWLQJ# GHILQHG# WHUPV# LQ # 60$//
&$3,7$/6 1


6XEFODXVH#51544

7KLV#GHILQLWLRQ#LV#DGDSWHG#IURP#WKH#³DOLJQPHQW#UDQJH´#VSHFLILFDWLRQV#RI#,0(76#633#553#DQG#IURP
(76#633#:741


9393404052)',6##,(&+(, ±#7<#±


6XEFODXVH#51545

7KH#IROORZLQJ#DUH#H[DPSOHV#RI#WKH# )81&7,216 #RI#DQ# (48,30(17 #RU# 6<67(0=

±# 7KH# )81&7,216 #RI#D#KHDUW0UDWH#PRQLWRU#LQFOXGH#PHDVXUHPHQW#DQG#GLVSOD\#RI#KHDUW#UDWH/#DQG


PD\#DGGLWLRQDOO\#LQFOXGH#DXGLEOH#DQG#YLVXDO#DODUPV#DQG#GLVSOD\#RI#WKH#(&*#ZDYHIRUP1


±# 7KH# )81&7,216 # RI# DQ# DXWRPDWLF# H[WHUQDO# GHILEULOODWRU# LQFOXGH# (&*# DQDO\VLV# DQG# GHILEULO0
ODWLRQ/#DQG#PD\#DGGLWLRQDOO\#LQFOXGH#(&*#PRQLWRULQJ/#SDFLQJ#DQG#ORJJLQJ1

6XEFODXVH#51547

7KH# ,(9# GHILQLWLRQ# KDV# EHHQ# PRGLILHG# LQ# WKLV# VWDQGDUG# E\# UHSODFLQJ# ³D# GHYLFH/# HTXLSPHQW# RU
V\VWHP´#ZLWK#³DQ# (48,30(17# RU# 6<67(0´#DQG#E\#SULQWLQJ#GHILQHG#WHUPV#LQ# 60$//#&$3,7$/6 1


6XEFODXVH#51549

7KH# ,(9# GHILQLWLRQ# KDV# EHHQ# PRGLILHG# LQ# WKLV# VWDQGDUG# E\# SULQWLQJ# GHILQHG# WHUPV# LQ# 60$//
&$3,7$/6 1

6XEFODXVH#5154;


7KH# VL]H# FKRVHQ# IRU# WKLV# GHILQLWLRQ# ZDV# EDVHG# XSRQ# WKH# OLPLWDWLRQV# RI# W\SLFDO# WHVW# IDFLOLWLHV1
3K\VLFDO#OLPLWDWLRQV#RI#GRRU#VL]HV#DQG#WKH#XQLIRUP#ILHOG#DUHD#ZHUH#FRQVLGHUHG1

6XEFODXVH#5154<

%RWK# FDWHJRULHV# RI# (48,30(17 # DQG# 6<67(06 /# WKRVH# XVHG# WR# NHHS# 3$7,(176 # DOLYH# DQG# WKRVH
XVHG# WR# UHVXVFLWDWH# 3$7,(176 /# DUH# GLIIHUHQWLDWHG# IURP# RWKHU# W\SHV# RI# (48,30(17 # DQG# 6<67(06
E\#WKH#UHTXLUHPHQW#WR#DFWLYHO\#LQWHUYHQH#WR#VXSSRUW#OLIH1

6XEFODXVH#51553


7KLV# LV# FRQVLVWHQW# ZLWK# GHILQLWLRQ# ,(9# 934034059# +³D# VHW# RI# YROWDJH# OHYHOV# XVHG# IRU# WKH
GLVWULEXWLRQ#RI#HOHFWULFLW\#DQG#ZKRVH#XSSHU#OLPLW#LV#JHQHUDOO\#DFFHSWHG#WR#EH#4#333#9#D1F1´,#DQG
ZLWK#WKH#VFRSH#RI#(XURSHDQ#8QLRQ#'LUHFWLYH#:62562((&/#FRPPRQO\#NQRZQ#DV#WKH#³/RZ0YROWDJH
GLUHFWLYH´#+³HTXLSPHQW#GHVLJQHG#IRU#XVH#ZLWK#D#YROWDJH#UDWLQJ#RI#EHWZHHQ#83#9#DQG#4#333#9#IRU
DOWHUQDWLQJ#FXUUHQW#DQG#EHWZHHQ#:8#DQG#4#833#9#IRU#GLUHFW#FXUUHQW´,1


6XEFODXVH#51554

7KH# 6<67(0 # LQFOXGHV# WKRVH# $&&(6625,(6 # WKDW# DUH# QHHGHG# IRU# RSHUDWLQJ# WKH# 6<67(0# DV
VSHFLILHG# E\# WKH# PDQXIDFWXUHU1# 7KH# PHDQLQJ# RI# WKH# QRWH/# ZKLFK# LV# FRSLHG# YHUEDWLP# IURP


,(&#939340404/# LV# WKDW# D# 0(',&$/# (/(&75,&$/# 6<67(0# FDQ# FRQVLVW# RI# 0(',&$/# (/(&75,&$/
(48,30(17 # XVHG# LQ# FRPELQDWLRQ# ZLWK# RWKHU# 0(',&$/# (/(&75,&$/# (48,30(17 /# DV# ZHOO# DV# QRQ0
PHGLFDO#HOHFWULFDO#HTXLSPHQW#XVHG#LQ#FRPELQDWLRQ#ZLWK# 0(',&$/#(/(&75,&$/#(48,30(17 1

6XEFODXVH#51555

)RU#H[DPSOH/#WKH# 23(5$7,1*#)5(48(1&< #+IXQGDPHQWDO,#IRU#D#YHQWLODWRU#FRXOG#EH#3/4#+]# +D#UDWH


RI# 9# EUHDWKV# SHU# PLQXWH,1# 7KH# VLJQDO# FRXOG# DOVR# FRQWDLQ# KDUPRQLFV# WR# SURSHUO\# UHSOLFDWH# WKH


ZDYH#VKDSH#+,2(#UDWLR,#RI#D#KXPDQ#UHVSLUDWRU\#F\FOH1

6XEFODXVH#51556

7KLV#GHILQLWLRQ#GRHV#QRW#LQFOXGH#LQDFWLYH/#PHFKDQLFDO# 3$7,(17 #VXSSRUWV#+H1J1#EHG#UDLOV/#EUDFHV,1




6XEFODXVH#51557

)RU#H[DPSOH/#WKH#VLPXODWLRQ#IUHTXHQF\#+IXQGDPHQWDO,#IRU#DQ#(&*#PRQLWRU#FRXOG#EH#3/<5#+]#+D
KHDUW# UDWH# RI# 88# EHDWV# SHU# PLQXWH,1# 7KH# VLJQDO# FRXOG# DOVR# FRQWDLQ# KDUPRQLFV# RI# VHYHUDO
KXQGUHG#+]#LQ#RUGHU#WR#KDYH#D#ZDYH#VKDSH#WKDW#PLPLFV#WKDW#RI#D#KXPDQ1


±#83#± 9393404052)',6##,(&+(,


6XEFODXVH#51558

7KH# 38%/,&#0$,16#1(7:25. #LV#UHIHUUHG#WR#LQ#7DEOH#534#DV#WKH#³SXEOLF#ORZ0YROWDJH#SRZHU#VXSSO\


QHWZRUN# WKDW# VXSSOLHV# EXLOGLQJV# XVHG# IRU# GRPHVWLF# SXUSRVHV´# WR# KDUPRQL]H# VRPHZKDW# ZLWK
&,635#44#DQG#EHFDXVH#WKH#WDEOHV#DUH#IRU#WKH#FXVWRPHU#RU# XVHU/# ZKR#PD\# QRW# EH#IDPLOLDU# ZLWK
WKLV# VWDQGDUG# DQG# LWV# GHILQLWLRQV1# ,Q# &,635#44/# WKH# 38%/,&# 0$,16# 1(7:25.# LV# FDOOHG# WKH# ³ORZ0
YROWDJH# SRZHU# VXSSO\# QHWZRUN# ZKLFK# VXSSOLHV# EXLOGLQJV# XVHG# IRU# GRPHVWLF# SXUSRVHV´# DQG


³GRPHVWLF# HOHFWULFLW\# SRZHU# VXSSOLHV/´# DQG# LQ# ,(&# 943330605# DQG# ,(&# 943330606# LW# LV# FDOOHG
WKH#³SXEOLF# VXSSO\# V\VWHP/´# WKH# ³SXEOLF# ORZ0YROWDJH# V\VWHP/´# DQG# WKH# ³SXEOLF# ORZ0YROWDJH
GLVWULEXWLRQ#V\VWHP1´

6XEFODXVH#51559


7KLV# GHILQLWLRQ#KDV#EHHQ#DGDSWHG#IURP#WKH#GHILQLWLRQ# RI#UDGLR#IUHTXHQF\# +GDWD# WUDQVPLVVLRQ,# LQ
$16,2,(((#433=#4<<9#E\#PRGLI\LQJ#WKH#127(1

6XEFODXVH#6153414

&RPSOLDQFH#ZLWK#WKLV#UHTXLUHPHQW#LV#GHPRQVWUDWHG#E\#FRPSOLDQFH#ZLWK#WKH#UHTXLUHPHQWV#RI#WKLV
VWDQGDUG1# &RPSOLDQFH# ZLWK# WKH# UHTXLUHPHQW # WKDW # (48,30(17# DQG# 6<67(06# VKDOO# QRW# HPLW


(/(&7520$*1(7,&# ',6785%$1&(6 # WKDW# FRXOG# DIIHFW# UDGLR# VHUYLFHV/# RWKHU# HTXLSPHQW# RU# WKH
(66(17,$/#3(5)250$1&(# RI#RWKHU# (48,30(17# DQG# 6<67(06# LV#GHPRQVWUDWHG#E\#FRPSOLDQFH#ZLWK
WKH# UHTXLUHPHQWV# RI# &ODXVH#9# DQG# 691534# RI# WKLV# VWDQGDUG1# &RPSOLDQFH# ZLWK# WKH# UHTXLUHPHQW
WKDW# (66(17,$/# 3(5)250$1&(# RI# (48,30(17# DQG# 6<67(06# KDYH# DGHTXDWH# ,0081,7<# WR
(/(&7520$*1(7,&# ',6785%$1&(6 # LV# GHPRQVWUDWHG# E\# FRPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI

&ODXVH#9#DQG#691535#RI#WKLV#VWDQGDUG1

6XEFODXVH#6153415

,I#WKLV#ULVN#DQDO\VLV#LV#SHUIRUPHG#DQG#WKH# (66(17,$/# 3(5)250$1&(# RI#WKH# (48,30(17# RU# 6<67(0


KDV# EHHQ# LGHQWLILHG/# WKH# (66(17,$/# 3(5)250$1&(# VKRXOG# PHHW# WKH# UHTXLUHPHQWV# RI# 6915351# ,I
WKLV# ULVN# DQDO\VLV# LV# QRW# SHUIRUPHG/# DOO# )81&7,216 # RI# WKH# (48,30(17# RU# 6<67(0# DUH# FRQVLGHUHG


(66(17,$/# 3(5)250$1&( # IRU# WKH#SXUSRVH# RI# ,0081,7< # WHVWLQJ# DQG# PXVW# PHHW# WKH# UHTXLUHPHQWV
RI#6915351

&RQVLGHUDWLRQ#VKRXOG#EH#JLYHQ#WR#,62#47<:4#DQG#,(&#939340407#IRU#WKLV#ULVN#DQDO\VLV1


6XEFODXVH#6153417

&RQVLGHUDWLRQ#VKRXOG#EH#JLYHQ#WR#,62#47<:4#DQG#,(&#939340407#IRU#WKLV#ULVN#DQDO\VLV1

6XEFODXVH#914153414


( 48,30(17 # WKDW# DSSOLHV# 5)# HOHFWURPDJQHWLF# HQHUJ\# IRU# GLDJQRVLV# RU# WUHDWPHQW# LV# XVXDOO\
&,635# 44# *URXS# 51# 7KLV# UHTXLUHPHQW# GRHV# QRW# DSSO\# WR# PRQLWRULQJ# (48,30(17 # DQG# 6<67(06
+H1J1#LPSHGDQFH#SOHWK\VPRJUDSK\#+UHVSLUDWLRQ#RU#DSQHD,#PRQLWRUV,1

6XEFODXVH#91;151534#E,#6,

6WDII#PXVW#EH#PDGH#DZDUH#WKDW#DFFHVVLEOH#SLQV#RI#FRQQHFWRUV#LGHQWLILHG#ZLWK#WKH#(6'#ZDUQLQJ
V\PERO# VKRXOG# QRW# EH# WRXFKHG# ZLWK# WKH# ILQJHUV# RU# ZLWK# D# KDQG0KHOG# 722/ # XQOHVV# SURSHU


SUHFDXWLRQDU\#SURFHGXUHV#KDYH#EHHQ#IROORZHG1

3UHFDXWLRQDU\#SURFHGXUHV#LQFOXGH=

−# PHWKRGV# WR# SUHYHQW# EXLOG0XS# RI# HOHFWURVWDWLF# FKDUJH# +H1J1# DLU# FRQGLWLRQLQJ/# KXPLGLILFDWLRQ/


FRQGXFWLYH#IORRU#FRYHULQJV/#QRQ0V\QWKHWLF#FORWKLQJ,>
−# GLVFKDUJLQJ# RQH¶V# ERG\# WR# WKH# IUDPH# RI# WKH# (48,30(17 # RU# 6<67(0# RU# WR# HDUWK# RU# D# ODUJH
PHWDO#REMHFW>
−# ERQGLQJ#RQHVHOI#E\#PHDQV#RI#D#ZULVW#VWUDS#WR#WKH# (48,30(17 #RU# 6<67(0# RU#WR#HDUWK1


9393404052)',6##,(&+(, ±#84#±


6XEFODXVH#91;151534#E,#7,

6WDII# WKDW# FRXOG# WRXFK# FRQQHFWRUV# LGHQWLILHG# ZLWK# WKH# (6'# ZDUQLQJ# V\PERO# VKRXOG# UHFHLYH# WKLV
H[SODQDWLRQ#DQG#WUDLQLQJ1#7KLV#LQFOXGHV#FOLQLFDO2ELRPHGLFDO#HQJLQHHULQJ#DQG#KHDOWK0FDUH#VWDII1

6XEFODXVH#91;151534#E,#8,


(6'#WUDLQLQJ#VKRXOG#LQFOXGH#DQ#LQWURGXFWLRQ#WR#WKH#SK\VLFV#RI#HOHFWURVWDWLF#FKDUJH/#WKH#YROWDJH
OHYHOV# WKDW# FDQ# RFFXU# LQ# QRUPDO# SUDFWLFH# DQG# WKH# GDPDJH# WKDW# FDQ# EH# GRQH# WR# HOHFWURQLF
FRPSRQHQWV#LI#WKH\#DUH#WRXFKHG#E\#DQ# 23(5$725 # ZKR# LV# HOHFWURVWDWLFDOO\#FKDUJHG1#)XUWKHU/#DQ
H[SODQDWLRQ# VKRXOG# EH# JLYHQ# RI# PHWKRGV# WR# SUHYHQW# EXLOG0XS# RI# HOHFWURVWDWLF# FKDUJH/# DQG# KRZ
DQG#ZK\#WR#GLVFKDUJH#RQH¶V#ERG\#WR#HDUWK#RU#WR#WKH#IUDPH#RI#WKH# (48,30(17 #RU# 6<67(0/#RU#ERQG
RQHVHOI# E\# PHDQV# RI# D# ZULVW# VWUDS# WR# WKH# (48,30(17 # RU# 6<67(0# RU# WR# HDUWK# SULRU# WR# PDNLQJ# D


FRQQHFWLRQ1

6XEFODXVH#91;161534#D,#4,#DQG#5,

7KH#XVH#RI# $&&(6625,(6 /#FDEOHV#DQG#WUDQVGXFHUV#RWKHU#WKDQ#WKRVH#IRU#ZKLFK#WKH# (48,30(17 #RU


6<67(0 # ZDV# GHVLJQHG# FDQ# VLJQLILFDQWO\# GHJUDGH# (0,66,216 # DQG# ,0081,7< # SHUIRUPDQFH1
7KHUHIRUH/# D# ZDUQLQJ# RQ# WKH# XVH# RI# $&&(6625,(6 /# WUDQVGXFHUV# DQG# FDEOHV# RWKHU# WKDQ# WKRVH


VSHFLILHG# LQ# WKH# $&&203$1<,1*# '2&80(176 # LV# QHFHVVDU\# WR# KHOS# HQVXUH# WKDW# WKH# XVHU# ZLOO# EH
DEOH#WR#RSHUDWH#WKH# (48,30(17 #RU# 6<67(0#DV#LQWHQGHG1

6XEFODXVH#91;161534#D,#6,

8QOHVV# (48,30(17 # DQG# 6<67(06 # KDYH# DQ# H[WUHPHO\# KLJK# OHYHO# RI# ,0081,7< # +H1J1# UDGLDWHG
,0081,7< # RI# 533#92P/# (6'# ,0081,7< # RI# 68#N9,# DQG# D# ORZ# OHYHO# RI# (0,66,216 # +H1J1# &,635# 44
*URXS# ,/# &ODVV# %,/# LW# ZLOO# DOZD\V# EH# QHFHVVDU\# IRU# WKH# FXVWRPHU# RU# WKH# XVHU# WR# PDQDJH# WKH
(/(&7520$*1(7,&# (19,5210(17 1# 7KH# WDEOHV# DQG# RWKHU# JXLGDQFH# WKDW# DUH# UHTXLUHG# WR# EH
LQFOXGHG#LQ#WKH# $&&203$1<,1*# '2&80(176 # SURYLGH#LQIRUPDWLRQ#WR# WKH#FXVWRPHU#RU# XVHU#WKDW#LV
HVVHQWLDO# LQ# GHWHUPLQLQJ# WKH# VXLWDELOLW\# RI# WKH# (48,30(17 # RU# 6<67(0# IRU# WKH# (/(&7520$*1(7,&
(19,5210(17 #RI#XVH/#DQG#LQ#PDQDJLQJ#WKH# (/(&7520$*1(7,&#(19,5210(17 #RI#XVH#WR#SHUPLW#WKH


(48,30(17 #RU# 6<67(0 #WR#SHUIRUP#DV#LQWHQGHG#ZLWKRXW#GLVWXUELQJ#RWKHU# (48,30(17 #DQG# 6<67(06


RU#QRQ0PHGLFDO#HOHFWULFDO#HTXLSPHQW1

6XEFODXVH#91;161534#D,#7,


7KH# (0,66,216 # OLPLWV/# ,(&# 93934# 7(67# /(9(/6 # DQG# WHVWV# VSHFLILHG# E\# WKLV# VWDQGDUG# GR# QRW
DGGUHVV# (/(&7520$*1(7,&# &203$7,%,/,7< # RI# HOHFWULFDO# HTXLSPHQW# DW# YHU\# FORVH# GLVWDQFHV1
8QOHVV#DOO#HOHFWULFDO#HTXLSPHQW#LV#FRPSDWLEOH#ZLWK#UHVSHFW#WR#ERWK#HOHFWULF#ILHOGV#DQG#PDJQHWLF
ILHOGV# DW# YHU\# FORVH# GLVWDQFHV# RYHU# WKH# HQWLUH# UDQJH# RI# H[SHFWHG# IUHTXHQFLHV/# VHSDUDWLRQ# LV
SUXGHQW1# ,I# LW# LV# HVVHQWLDO# WR# XVH# WKH# (48,30(17 # RU# 6<67(0# YHU\# FORVH# WR# RWKHU# HOHFWULFDO


HTXLSPHQW/# LW# LV# SUXGHQW# WR# GHWHUPLQH/# E\# REVHUYDWLRQ/# LI# WKH# SHUIRUPDQFH# RI# HLWKHU# SURGXFW# LV
DIIHFWHG#E\#XQLQWHQGHG#HOHFWURPDJQHWLF#FRXSOLQJ1

6XEFODXVH#91;161534#D,#8,

$# MXVWLILFDWLRQ# IRU# ORZHU# &203/,$1&(# /(9(/6 # LV# UHTXLUHG# WR# EH# LQFOXGHG# LQ# WKH# $&&203$1<,1*
'2&80(176 # WR# FRQYH\# WR# WKH# FXVWRPHU# RU# XVHU# WKDW# WKHUH# DUH# SK\VLFDO/# WHFKQRORJLFDO# RU
SK\VLRORJLFDO# OLPLWDWLRQV# WR# WKH# DELOLW\# RI# WKH# (48,30(17 # RU# 6<67(0# WR# SHUIRUP# DV# LQWHQGHG# LQ


WKH# SUHVHQFH# RI# (/(&7520$*1(7,&# ',6785%$1&(6 1# 7KLV# ZLOO# DOVR# KHOS# WR# HPSKDVL]H# WKH
LPSRUWDQFH# RI# WKH# DVVRFLDWHG# DGGLWLRQDO# JXLGDQFH/# LQ# WKH# WDEOHV/# IRU# PDQDJLQJ# WKH
(/(&7520$*1(7,&#(19,5210(17 1

)RU# WKH# ,(&#9433307044# ,0081,7< # WHVW/# %ORZHU# &203/,$1&(# /(9(/6 %# +69153514# D,,# PHDQV


VKRUWHU#GXUDWLRQ#RI#WKH#YROWDJH#GLS#RU#LQWHUUXSWLRQ/#RU#OHVV#RI#D#GLS#LQ#YROWDJH1#6LPLODUO\/#%KLJKHU
&203/,$1&(# /(9(/6 %#PHDQV# ORQJHU# GXUDWLRQ# RI#WKH#YROWDJH#GLS# RU# LQWHUUXSWLRQ/# RU# D# JUHDWHU# GLS
LQ#YROWDJH1


±#85#± 9393404052)',6##,(&+(,


6XEFODXVH#91;161534#D,#9,

8QOHVV# (48,30(17 # DQG# 6<67(06 # KDYH# DQ# H[WUHPHO\# KLJK# OHYHO# RI# ,0081,7< # +H1J1# UDGLDWHG
,0081,7< #RI#533#92P/#(6'# ,0081,7< #RI#68#N9,/#LW#ZLOO#DOZD\V#EH#QHFHVVDU\#IRU#WKH#FXVWRPHU#RU
WKH# XVHU# WR# PDQDJH# WKH# (/(&7520$*1(7,&# (19,5210(17 1# 7KH# WDEOHV# WKDW# DUH# UHTXLUHG# WR# EH
LQFOXGHG#LQ#WKH# $&&203$1<,1*# '2&80(176 # SURYLGH#LQIRUPDWLRQ#WR# WKH#FXVWRPHU#RU# XVHU#WKDW#LV
HVVHQWLDO# LQ# GHWHUPLQLQJ# WKH# VXLWDELOLW\# RI# WKH# (48,30(17 # RU# 6<67(0# IRU# WKH# (/(&7520$*1(7,&


(19,5210(17 #RI#XVH/#DQG#LQ#PDQDJLQJ#WKH# (/(&7520$*1(7,&#(19,5210(17 #RI#XVH#WR#SHUPLW#WKH
(48,30(17 #RU# 6<67(0 #WR#SHUIRUP#DV#LQWHQGHG1

6XEFODXVH#91;161534#D,#9,#VHFRQG#GDVK

7KH# UHVWULFWLRQ# RQ# ORZHU# DQG# KLJKHU# &203/,$1&(# /(9(/6 # WKDW# FDQ# EH# FODLPHG# LV# LQWHQGHG# WR


HQVXUH# WKDW# LI# ORZHU# &203/,$1&(# /(9(/6 # DUH#MXVWLILHG#RU# KLJKHU# OHYHOV# FODLPHG/# WKH\# GLIIHU# IURP
WKH#,(&#93934# 7(67#/(9(/ #E\#DQ#DPRXQW#WKDW#LV#VLJQLILFDQW#IURP#DQ#(0&#VWDQGSRLQW1

$OO# ,0081,7< # WHVWV# DUH# DSSOLFDEOH# XQOHVV# WKH# (48,30(17 # RU# 6<67(0# LV# RXWVLGH# WKH# VFRSH# RI# DQ
(0&# EDVLF# VWDQGDUG/# 691535# VSHFLILHV# WKDW# WKH# WHVW# LV# QRW# DSSOLFDEOH/# RU # LW# LV# QRW# SRVVLEOH# WR
SHUIRUP#WKH#WHVW#IRU#WKH#SDUWLFXODU# (48,30(17 #RU# 6<67(01#)RU#H[DPSOH/#WKH#,(&#9433307044#WHVW
ZRXOG# QRW# EH# DSSOLFDEOH# IRU# ,17(51$//<# 32:(5('# (48,30(17 # WKDW# KDV# QR# SURYLVLRQ# IRU


FRQQHFWLRQ#WR#PDLQV#SRZHU1

6XEFODXVH#91;161534#D,#9,#WKLUG#GDVK

,I# WKH# &203/,$1&(# /(9(/ # HTXDOV# WKH# ,(&# 93934# 7(67# /(9(/ # RI# WKLV# VWDQGDUG# IRU# HDFK# ,0081,7<

WHVW/# QR# FKDQJHV# WR# WKH# JXLGDQFH# LQ# FROXPQ# 7# RI# 7DEOH# 535# VKRXOG# EH# PDGH1# )RU# ,0081,7<
WHVWV#IRU#ZKLFK#WKH# &203/,$1&(#/(9(/ #LV#ORZHU#WKDQ#WKH#,(&#93934# 7(67# /(9(/ #RI#WKLV#VWDQGDUG
+DQG# MXVWLILHG,/# H[DPSOH# WH[W# IRU# FROXPQ# 7# RI# 7DEOH# 535# DSSHDUV# EHORZ1# ,I# WKH# &203/,$1&(
/(9(/ #LV#KLJKHU#WKDQ#WKH#,(&#93934# 7(67#/(9(/ #RI#WKLV#VWDQGDUG#IRU#DQ #,0081,7< #WHVW/#WKH#PDQX0
IDFWXUHU#RI#WKH# (48,30(17# RU# 6<67(0# PD\#FKRRVH#HLWKHU#WR#XVH#WKH#H[LVWLQJ#WH[W#LQ#FROXPQ#7#RI
7DEOH# 535# ZLWKRXW# PRGLILFDWLRQ/# RU# WR# GHVFULEH# WKH# FKDUDFWHULVWLFV# RI# WKH# (/(&7520$*1(7,&
(19,5210(17 # LQ# ZKLFK# WKH# (48,30(17# RU# 6<67(0# LV# VXLWDEOH# GXH# WR# LWV# KLJKHU # ,0081,7< 1# 2QH


H[DPSOH# RI# WH[W# IRU# FROXPQ# 7# RI# 7DEOH# 535# IRU# (48,30(17# DQG# 6<67(06# IRU# ZKLFK# WKH
&203/,$1&(# /(9(/ # LV# KLJKHU# WKDQ# WKH# ,(&# 93934# 7(67# /(9(/ # IRU# WKH# ,(&# 9433307044# WHVW
DSSHDUV# EHORZ# +VHH# 5H=# 69153515/# (OHFWURVWDWLF# GLVFKDUJH# +(6',# DQG# 5H=# 6915351:/# 9ROWDJH
GLSV/#VKRUW#LQWHUUXSWLRQV#DQG#YROWDJH#YDULDWLRQV#RQ#SRZHU#VXSSO\#LQSXW#OLQHV,1


−# 5H=#69153515/#(OHFWURVWDWLF#GLVFKDUJH#+(6',
)RU# H[DPSOH/# LI# WHVW# OHYHO# 5# RI# ,(&# 943330705# +±7#N9# FRQWDFW# GLVFKDUJH# DQG# ±7#N9# DLU
GLVFKDUJH,# LV# FODLPHG# +DQG# MXVWLILHG,/# LW# PD\# EH# QHFHVVDU\# WR# UHFRPPHQG# WKH# XVH# RI# DQWL0
VWDWLF#PDWHULDOV#RU#KLJKHU#UHODWLYH#KXPLGLW\1#,I# WHVW# OHYHO# 7# RI#,(&# 943330705# +±;#N9# FRQWDFW


GLVFKDUJH# DQG# ±48#N9# DLU# GLVFKDUJH,# LV# FODLPHG/# WKH# (48,30(17 # RU# 6<67(0# FRXOG# EH
VSHFLILHG#IRU#XVH#LQ#D#GU\#HQYLURQPHQW1
−# 5H=#69153517/#(OHFWULFDO#IDVW#WUDQVLHQWV#DQG#EXUVWV
)RU#H[DPSOH/#LI#D#ORZHU# &203/,$1&(#/(9(/ #LV#FODLPHG#+DQG#MXVWLILHG,/#LW#PD\#EH#QHFHVVDU\#WR
UHFRPPHQG# WKH# XVH# RI# ILOWHUV# RQ# SRZHU# LQSXW# OLQHV# RU# PLQLPXP# VHSDUDWLRQ# EHWZHHQ# VLJQDO
OLQHV#DQG#SRZHU#OLQHV1
−# 5H=#69153518/#6XUJHV


)RU#H[DPSOH/#LI#D#ORZHU# &203/,$1&(#/(9(/ #LV#FODLPHG#+DQG#MXVWLILHG,/#LW#PD\#EH#QHFHVVDU\#WR


UHFRPPHQG#WKH#XVH#RI#VXUJH#VXSSUHVVLRQ#GHYLFHV1
−# 5H=# 6915351:/# 9ROWDJH# GLSV/# VKRUW# LQWHUUXSWLRQV# DQG# YROWDJH# YDULDWLRQV# RQ# SRZHU# VXSSO\
LQSXW#OLQHV


)RU# WKLV# WHVW/# %ORZHU# &203/,$1&(# /(9(/6 %# +VHH# 69153514D,,# PHDQV# VKRUWHU# GXUDWLRQ# RI# WKH
YROWDJH# GLS# RU# LQWHUUXSWLRQ/# RU# OHVV# RI# D# GLS# LQ# YROWDJH1# 6LPLODUO\/# %KLJKHU# &203/,$1&(
/(9(/6 %# PHDQV# ORQJHU# GXUDWLRQ# RI# WKH# YROWDJH# GLS# RU# LQWHUUXSWLRQ/# RU# D# JUHDWHU# GLS# LQ
YROWDJH1


,I# D# ORZHU# &203/,$1&(# /(9(/ # LV# FODLPHG# +DQG# MXVWLILHG,/# LW# PD\# EH# QHFHVVDU\# WR# PDNH
DGGLWLRQDO#UHFRPPHQGDWLRQV#UHJDUGLQJ#WKH#XVH#RI#XQLQWHUUXSWLEOH#SRZHU#VXSSOLHV/#EDWWHULHV/
RU#RWKHU#SRZHU#FRQGLWLRQLQJ#HTXLSPHQW1

9393404052)',6##,(&+(, ±#86#±


)RU# (48,30(17 # DQG# 6<67(06 # ZLWK# LQWHUQDO# EDWWHULHV# WKDW# FDQ# PHHW# D# KLJKHU# ,0081,7<# 7(67
/(9(/ #IRU# WKH#,(&# 9433307044# YROWDJH# LQWHUUXSWLRQ# WHVW/# WKH# JXLGDQFH# LQ# FROXPQ# 7# RI# 7DEOH
535# PD\# EH# UHYLVHG# DFFRUGLQJO\1# ,I/# IRU# H[DPSOH/# D# YHQWLODWRU# PHHWV# WKH# UHTXLUHPHQWV# RI
69153514# M,# DW# DQ# ,0081,7<# 7(67# /(9(/ # RI# ?8# (# 8 7 # IRU# 57# K/# WKH# WH[W# LQ# FROXPQ# 7# RI
7DEOH#535#FRXOG#EH#UHSODFHG#ZLWK#WKH#IROORZLQJ#+RU#HTXLYDOHQW,=
0DLQV# SRZHU#TXDOLW\#VKRXOG# EH# WKDW# RI# D# W\SLFDO# FRPPHUFLDO# RU# KRVSLWDO# HQYLURQPHQW1# ,I


DQ# LQWHUUXSWLRQ# RI# PDLQV# SRZHU# RFFXUV/# WKH# > (48,30(17 # RU# 6<67(0@# LV# FDSDEOH# RI
FRQWLQXHG#RSHUDWLRQ#IRU#D#PLQLPXP#RI#57#K/#SURYLGHG#WKH#EDWWHULHV#DUH#FKDUJHG#SULRU#WR
WKH#LQWHUUXSWLRQ#RI#PDLQV#SRZHU1
−# 5H=#6915351;14/#3RZHU#IUHTXHQF\#PDJQHWLF#ILHOGV
)RU#H[DPSOH/#LI#D#ORZHU# &203/,$1&(#/(9(/ #LV#FODLPHG#+DQG#MXVWLILHG,/#LW#PD\#EH#QHFHVVDU\#WR


UHFRPPHQG#SRVLWLRQLQJ#WKH# (48,30(17 #RU# 6<67(0#IXUWKHU#IURP#VRXUFHV#RI#SRZHU#IUHTXHQF\
PDJQHWLF#ILHOGV#RU#LQVWDOODWLRQ#RI#PDJQHWLF#VKLHOGLQJ1

6XEFODXVH#91;161534#E,

6HH#$QQH[#%%%#IRU#H[DPSOHV#RI#FRPSOHWLRQ#RI#7DEOHV#536/#537/#538#DQG#5391


6HH#$QQH[#$$$/#6XEFODXVH#91;161534#D,#9,1

7KH# UHVWULFWLRQ# RQ# ORZHU# DQG# KLJKHU# &203/,$1&(# /(9(/6 # WKDW# FDQ# EH# FODLPHG# LV# LQWHQGHG# WR
HQVXUH# WKDW# LI# ORZHU# ,0081,7<# 7(67# /(9(/6 # DUH# MXVWLILHG# RU# KLJKHU# OHYHOV# FODLPHG/# WKH\# GLIIHU
IURP#WKH#,(&#93934# 7(67#/(9(/ #E\#DQ#DPRXQW#WKDW#LV#VLJQLILFDQW#IURP#DQ#(0&#VWDQGSRLQW1

7KH# LQFUHDVHG# UDGLDWHG# 5)# ,0081,7<# 7(67# /(9(/ # IRU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06
LV# LQWHQGHG# DV# DQ# DGGLWLRQDO# VDIHW\# PDUJLQ# WR# GHFUHDVH# WKH# OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH
FRPPXQLFDWLRQV# HTXLSPHQW/# VXFK# DV# D# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQH/# FRXOG# FDXVH
'(*5$'$7,21 # RI# DQ# (48,30(17 # RU# 6<67(0 # WKDW# UHVXOWV# LQ# KDUP# WR# D# 3$7,(17 # LI# WKH
SRUWDEOH2PRELOH#FRPPXQLFDWLRQV#HTXLSPHQW#LV#EURXJKW#LQWR# 3$7,(17 #DUHDV1#7KLV#UHTXLUHPHQW#LV
QRW# LQWHQGHG# WR# SHUPLW# WKH# XVH# RI# VXFK# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW# FORVHU# WR


(48,30(17 # DQG# 6<67(06 1# 7KHUHIRUH/# IRU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 /# WKH
FDOFXODWLRQ# RI# WKH# UHFRPPHQGHG# PD[LPXP# ILHOG# VWUHQJWK# DQG# PLQLPXP# VHSDUDWLRQ# GLVWDQFH
WDNHV#WKLV#VDIHW\#PDUJLQ#LQWR#DFFRXQW1#$Q#DGGLWLRQDO#IDFWRU#RI#4326#LV#XVHG#LQ#WKH#UHFRPPHQGHG
VHSDUDWLRQ#GLVWDQFH#HTXDWLRQV#IRU#WKH#,60#IUHTXHQF\#EDQGV#EHWZHHQ#483#N+]#DQG#;3#0+]#DQG
LQ#WKH#IUHTXHQF\#UDQJH#;3#0+]#WR#5/8#*+]


)RXU# HTXDWLRQV# DUH# XVHG# WR# FDOFXODWH# WKH# UHFRPPHQGHG# VHSDUDWLRQ# GLVWDQFHV# LQ# 7DEOHV# 536
DQG#538/#DQG#WKUHH#HTXDWLRQV#DUH#XVHG#WR#FDOFXODWH#WKH#UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#LQ
7DEOHV#537# DQG#5391#9 4 # DQG#9 5# DUH# XVHG# LQ# WKH#IUHTXHQF\#UDQJH#483#N+]# WR#;3#0+]# EHFDXVH
WKH# ,(&#943330709# FRQGXFWHG# 5)# ,0081,7< # WHVW# LV# XVHG# DV# D# VXEVWLWXWH# IRU# UDGLDWHG# 5)


,0081,7< # WHVWLQJ# LQ# WKDW# IUHTXHQF\# UDQJH1# 7KH# HTXDWLRQV# DUH# GHULYHG# IURP# HTXDWLRQ# )14# LQ
$QQH[# )# RI#,(&# 943330706 58#E\# VROYLQJ#IRU#G# DQG#VXEVWLWXWLQJ#WKH# YDULDEOH# WKDW#UHSUHVHQWV# WKH
&203/,$1&(# /(9(/ # IRU# (1# 7KH# FRQVWDQWV# XVHG# LQ# WKH# HTXDWLRQV# DUH# EDVHG# RQ# WKH# IROORZLQJ
DVVXPSWLRQV#UHJDUGLQJ#PRELOH2SRUWDEOH#5)#WUDQVPLWWHUV=

−# SURSDJDWLRQ#LV#LVRWURSLF>
−# WKH# DQWHQQD# HIILFLHQF\# DSSUR[LPDWHV# WKDW# RI# DQ# LGHDO# GLSROH# IRU# WUDQVPLWWHUV# ZLWK


IUHTXHQFLHV#DERYH#;33#0+]#+N# #:,>
−# WKH# DQWHQQD# HIILFLHQF\# LV# DSSUR[LPDWHO\# KDOI# WKDW# RI# DQ# LGHDO# GLSROH# IRU# WUDQVPLWWHUV# ZLWK
IUHTXHQFLHV#EHORZ#;33#0+]#+N# #6/8,>
−# DQWHQQDV#ZLWK#JDLQ#DUH#QRW#XVXDOO\#XVHG#LQ#PRELOH2SRUWDEOH#FRPPXQLFDWLRQV#HTXLSPHQW1



BBBBBBBBBBB
58# 6HH#$PHQGPHQW#4#+4<<;,#RI#,(&#943330706=#4<<81

±#87#± 9393404052)',6##,(&+(,


)RU# (48,30(17 # DQG# 6<67(06 # WKDW# DUH# VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# DQG# WKDW
FRPSO\# ZLWK# UHGXFHG# 5)# ,0081,7<# 7(67# /(9(/6 # EDVHG# XSRQ# WKH# PLQLPXP# 5)# VKLHOGLQJ
HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ#VSHFLILHG#IRU#WKH#VKLHOGHG#ORFDWLRQ#+VHH#69153516#D,#6,#DQG
69153519# D,# 6,,/# LW# LV# QRW# PHDQLQJIXO# WR# GLVFXVV# VHSDUDWLRQ# GLVWDQFHV1# )RU# WKLV# UHDVRQ/# 7DEOH
53:#LV#XVHG#LQVWHDG#RI#7DEOHV#536#DQG#538/#DQG#7DEOH#53;#LV#XVHG#LQVWHDG#RI#7DEOHV#537#DQG
5391#+6HH#DOVR#91;161534#F,#7,1,


6XEFODXVH#91;161534#F,#5,

( 48,30(17 # DQG# 6<67(06 # PD\# QHHG# WR# EH# VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# DV# D
UHVXOW# RI# HLWKHU# WKH# (0,66,216 # RU# ,0081,7< # FKDUDFWHULVWLFV# RI# WKH# (48,30(17 # RU# 6<67(01# 7KH
VSHFLILFDWLRQV# IRU# WKH# VKLHOGHG# ORFDWLRQ# WKDW# UHVXOW# IURP# WKH# (0,66,216 # FKDUDFWHULVWLFV# DQG# WKH
VSHFLILFDWLRQV# IRU# WKH# VKLHOGHG# ORFDWLRQ# WKDW# UHVXOW# IURP# WKH# ,0081,7< # FKDUDFWHULVWLFV# RI# WKH


(48,30(17 #RU# 6<67(0 #PXVW#EH#LGHQWLFDO#EHFDXVH#WKH\#DSSO\#WR#WKH#VDPH#VKLHOGHG#ORFDWLRQ1

7KH# VSHFLILHG# YDOXH+V,# IRU# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# PLQLPXP# 5)# ILOWHU
DWWHQXDWLRQ# PXVW# EH# LGHQWLFDO# LQ# HDFK# IUHTXHQF\# UDQJH# IRU# ZKLFK# WKH\# DUH# VSHFLILHG# VR# WKDW
UDGLDWHG#5)#ZLOO#QRW#E\SDVV#WKH#ILOWHUV#DQG#FRQGXFWHG#5)#ZLOO#QRW#E\SDVV#WKH#VKLHOGLQJ1#7KLV#LV
WUXH#HYHQ#LI#XVH#LQ#D#VKLHOGHG#ORFDWLRQ#LV#VSHFLILHG#RQO\#WR#FRPSO\#ZLWK#WKH#,(&#943330709#WHVW1


,Q# WKLV# FDVH/# WKH# VSHFLILHG# YDOXH+V,# IRU# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# PXVW# DOVR# EH
LGHQWLFDO# WR# WKH# VSHFLILHG# PLQLPXP# YDOXH+V,# IRU# 5)# ILOWHU# DWWHQXDWLRQ# LQ# HDFK# IUHTXHQF\# UDQJH
IRU# ZKLFK# WKH\# DUH# VSHFLILHG# EHFDXVH# DOWKRXJK# WKH# WHVW# LV# SHUIRUPHG# RQ# FDEOHV/# LW# LV# LQWHQGHG
WR#VLPXODWH#WKH#HIIHFW#RI#UDGLDWHG#5)#VRXUFHV1

,I#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ#LV#VSHFLILHG#DV#D#UHVXOW#RI#WKH# ,0081,7< #FKDUDFWHULVWLFV#RI#WKH
(48,30(17 # RU# 6<67(0 /# WKH# PDQXIDFWXUHU# PD\# FKRRVH# QRW# WR# XVH# WKH# (0,66,216 # DOORZDQFH# LQ
69153414# D,#7,1# ,I# WKLV# DOORZDQFH# LV# QRW# XVHG/# LW# LV# QRW# QHFHVVDU\# WR# DGG# WKH# WH[W# VSHFLILHG# LQ
91;161534#F,#5,#WR#7DEOH#5341

6XEFODXVH#91;161534#F,#6,


)RU# H[DPSOH/# D# PDQXIDFWXUHU# PLJKW# VSHFLI\# WKDW# HTXLSPHQW# VXFK# DV# KLJK0IUHTXHQF\# VXUJHU\
(48,30(17 /# ZDONLH0WDONLHV# DQG# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# VKRXOG# EH# SURKLELWHG# IURP
LQVLGH# WKH# VKLHOGHG# ORFDWLRQ# RU# EH# WXUQHG# RII# ZKHQ# WKH# (48,30(17 # RU# 6<67(0# LV# LQ# XVH1# $
PDQXIDFWXUHU# PLJKW# DOVR# PDNH# UHFRPPHQGDWLRQV# UHJDUGLQJ# RWKHU# (48,30(17 # RU# 6<67(06# WKDW
DUH# DOVR # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ/# H1J1# WKDW# WKH\# EH# SURKLELWHG# IURP# LQVLGH


WKH# VDPH# VKLHOGHG# ORFDWLRQ# RU# EH# WXUQHG# RII# ZKHQ# WKH# (48,30(17 # RU# 6<67(0# RI# WKH
PDQXIDFWXUHU#PDNLQJ#WKH#UHFRPPHQGDWLRQ#LV#LQ#XVH1

:KHWKHU# RU# QRW# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# LV# VSHFLILHG# DV# D# UHVXOW# RI# WKH# ,0081,7<
FKDUDFWHULVWLFV# RI# WKH# (48,30(17 # RU# 6<67(0# +H1J1# LW# FRXOG# EH# VSHFLILHG# DV# D# UHVXOW# RI# WKH


(0,66,216 # FKDUDFWHULVWLFV,/# 5)# UHIOHFWLRQV# LQ# D# VKLHOGHG# ORFDWLRQ# UHVXOW# LQ# ILHOG# VWUHQJWKV# DW
YDULRXV#ORFDWLRQV#ZLWKLQ#WKH#URRP#WKDW#GR#QRW#QHFHVVDULO\#GHFUHDVH#ZLWK#GLVWDQFH# DV# SUHGLFWHG
E\# WKH# HTXDWLRQV# LQ# 7DEOHV# 536# WKURXJK# 5391# 7KHUHIRUH/# FDXWLRQ# ZRXOG# GLFWDWH# WKDW# 5)
WUDQVPLWWHUV#VKRXOG#QRW#EH#XVHG#LQVLGH#WKH#VSHFLILHG#VKLHOGHG#ORFDWLRQ1

$#UHFRPPHQGDWLRQ#VKRXOG#EH#PDGH#WR#WKH#FXVWRPHU#WR#SRVW#VLJQV#DW#DOO#HQWUDQFHV#WR#VKLHOGHG
ORFDWLRQV# UHJDUGLQJ# HTXLSPHQW# DOORZHG# RU# SURKLELWHG# EHFDXVH# RI# WKH# LPSRUWDQFH# RI# WKLV
UHTXLUHPHQW#DQG#WKH#IDFW#WKDW#WKH#LQIRUPDWLRQ#LQ# WKH# $&&203$1<,1*# '2&80(176 #LV# QRW# OLNHO\# WR


EH#UHDGLO\#DYDLODEOH#WR#KHDOWK0FDUH#SURYLGHUV/# 3$7,(176 #RU#YLVLWRUV1

6XEFODXVH#91;161534#F,#7,

6HH#$QQH[#%%%#IRU#H[DPSOHV#RI#FRPSOHWLRQ#RI#7DEOHV#53:#DQG#53;1


6HH#$QQH[#$$$/#6XEFODXVH#91;161534#D,#9,1

7KH# UHVWULFWLRQ# RQ# ORZHU# DQG# KLJKHU# &203/,$1&(# /(9(/6 # WKDW# FDQ# EH# FODLPHG# LV# LQWHQGHG# WR
HQVXUH# WKDW# LI# ORZHU# ,0081,7<# 7(67# /(9(/6 # DUH# MXVWLILHG# RU# KLJKHU# &203/,$1&(# /(9(/6 # DUH
FODLPHG/# WKH\# GLIIHU# IURP# WKH# ,(&# 93934# 7(67# /(9(/ # E\# DQ# DPRXQW# WKDW# LV# VLJQLILFDQW# IURP# DQ


(0&#VWDQGSRLQW1

9393404052)',6##,(&+(, ±#88#±


)RU# (48,30(17 # DQG# 6<67(06 # WKDW# DUH# VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# DQG# WKDW
FRPSO\# ZLWK# UHGXFHG# 5)# ,0081,7<# 7(67# /(9(/6 # EDVHG# XSRQ# WKH# VSHFLILHG# PLQLPXP# 5)
VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# RI# WKH# VKLHOGHG# ORFDWLRQ# +VHH# 69153516# D,# 6,# DQG
69153519# D,# 6,,/# LW# LV# QRW# PHDQLQJIXO# WR# GLVFXVV# VHSDUDWLRQ# GLVWDQFHV1# )RU# WKLV# UHDVRQ/
7DEOH#53:# LV# XVHG# LQVWHDG# RI# 7DEOHV# 536# DQG# 538/# DQG# 7DEOH# 53;# LV# XVHG# LQVWHDG# RI# 7DEOHV
537#DQG#5391


6XEFODXVH#91;161534#F,#7,/#WKLUG#GDVK

6HH#$QQH[#$$$/#6XEFODXVH#91;161534#F,#5,1

6XEFODXVH#91;161534#J,


7KH# XVH# RI# DQ# $&&(6625< /# FDEOH# RU# WUDQVGXFHU# RWKHU# WKDQ# WKRVH# IRU# ZKLFK# WKH# (48,30(17 # RU
6<67(0 # ZDV# GHVLJQHG# RU# WHVWHG# FDQ# VLJQLILFDQWO\# GHJUDGH# (0,66,216 # DQG# ,0081,7<
SHUIRUPDQFH1# 7KHUHIRUH/# D# ZDUQLQJ# RQ# WKH# XVH# RI# WKH# $&&(6625< /# WUDQVGXFHU# DQG# FDEOH# ZLWK
(48,30(17 # DQG# 6<67(06 # RWKHU# WKDQ# WKRVH# VSHFLILHG# LQ# WKH# $&&203$1<,1*# '2&80(176 # LV
QHFHVVDU\# WR# KHOS# DVVXUH# WKDW# WKH# XVHU# ZLOO# EH# DEOH# WR# RSHUDWH# (48,30(17 # DQG# 6<67(06 # DV
LQWHQGHG1# ,I# D# WKLUG0SDUW\# VXSSOLHU# RIIHUV# $&&(6625,(6 /# FDEOHV# RU# WUDQVGXFHUV# IRU# XVH# ZLWK# DQ
(48,30(17 #RU# 6<67(0 #DQG#WKH\#DUH#QRW#OLVWHG#RU#VSHFLILHG#LQ#WKH# $&&203$1<,1*#'2&80(176 #IRU


WKH# (48,30(17 #RU# 6<67(0/#LW#LV#WKH#UHVSRQVLELOLW\#RI#WKDW#WKLUG0SDUW\#VXSSOLHU#RU#WKH#FXVWRPHU#WR
GHWHUPLQH# FRPSOLDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# WKLV# VWDQGDUG# IRU# WKH# (48,30(17 # RU# 6<67(0
ZKHQ#XVHG#ZLWK#WKH# $&&(6625< /#FDEOH#RU#WUDQVGXFHU1

6XEFODXVH#91;161534#K,#6,

7\SHV#RI#PRGXODWLRQ#DUH#OLVWHG#LQ#WKH#,78#5DGLR#5HJXODWLRQV/#9ROXPH#5/#$SSHQGLFHV/#$SSHQGL[
64/# &ODVVLILFDWLRQ# RI# HPLVVLRQV# DQG# QHFHVVDU\# EDQGZLGWKV/# 6HFWLRQ# ,,# ±# &ODVVLILFDWLRQ/# 6XE0
6HFWLRQ#,,$/#%DVLF#FKDUDFWHULVWLFV1

6XEFODXVH#69153414#D,


)RU# 0(',&$/# (/(&75,&$/# (48,30(17 # DQG# 6<67(06 /# WKH# &,635#44# SURGXFW# IDPLO\# VWDQGDUG# LV
XVHG#DV#D#EDVLF#(0&#VWDQGDUG1#6HH#DOVR#GHILQLWLRQ#51554/#0(',&$/#(/(&75,&$/#6<67(0 1

6XEFODXVH#69153414#D,#4,


,W#LV#OLNHO\#WKDW#ZKHQ#&,635#47# (48,30(17 #LV#FRPELQHG#ZLWK#RWKHU#+H1J1#&,635#44,# (48,30(17


WR# IRUP# D# 6<67(0 /# LWV# LQWHUFRQQHFWLQJ# FDEOHV# ZRXOG# HPDQDWH# 5)# HOHFWURPDJQHWLF# HQHUJ\
JHQHUDWHG# E\# RWKHU# VRXUFHV1# 7KHUHIRUH/# DGGLWLRQDO# (0,66,216 # WHVWLQJ# LQ# DFFRUGDQFH# ZLWK
&,635#44#ZRXOG#EH#UHTXLUHG1


6XEFODXVH#69153414#D,#6,

7KH#GHILQLWLRQ#RI#&,635#44#*URXS#4/#&ODVV#$#DQG#&ODVV#%#+,60,#HTXLSPHQW#LV#JHQHUDOO\#VLPLODU
WR# WKDW# RI# &,635#55# &ODVV#$# DQG# &ODVV#%# +,7(,1# 7KH# FRQGXFWHG# DQG# UDGLDWHG# ',6785%$1&(
OLPLWV# DQG# WKH# PHDVXULQJ# PHWKRGV# DUH# VLPLODU# LQ# ERWK# VWDQGDUGV1# 7KLV# PHDQV# WKDW# HTXLSPHQW
FRPSO\LQJ# ZLWK# WKH# &,635#55# &ODVV#$# UHTXLUHPHQWV# DXWRPDWLFDOO\# FRPSOLHV# ZLWK# WKH
&,635#44/# *URXS#4/# &ODVV#$# UHTXLUHPHQWV# DQG# HTXLSPHQW# FRPSO\LQJ# ZLWK# WKH# &,635#55
&ODVV#%# UHTXLUHPHQWV# DOVR# FRPSOLHV# ZLWK# WKH# &,635#44/# *URXS#4/# &ODVV#%# UHTXLUHPHQWV1# $V


ERWK# VWDQGDUGV# DGGUHVV# VXEV\VWHP# WHVWLQJ# DQG# WKH# UHTXLUHPHQWV# DUH# HVVHQWLDOO\# LGHQWLFDO/
WKHUH#LV#QR#QHHG#WR#UHTXLUH#WHVWLQJ#RI#WKH# 6<67(0#WR#HQVXUH#WKDW#WKH#LQFRUSRUDWLRQ#RI#FRPSOLDQW
,7(#GRHV#QRW#GHJUDGH#WKH#SHUIRUPDQFH#RI#WKH# 6<67(01

:KLOH#,7(#XVHG#DV#SDUW#RI#D# 0(',&$/# (/(&75,&$/# 6<67(0#PD\#EH#FODVVLILHG#LQ#DFFRUGDQFH#ZLWK


&,635#55/# (48,30(17 #DQG# 6<67(06 #PD\#QRW#EH#FODVVLILHG#LQ#DFFRUGDQFH#ZLWK#&,635#551


6XEFODXVH#69153414#D,#7,

6HH#$QQH[#$$$/#6XEFODXVH#91;161534#F,#5,1


,I# LW# LV# QHFHVVDU\# WR# VSHFLI\# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# DV# D# UHVXOW# RI# WKH# ,0081,7<
FKDUDFWHULVWLFV# RI# WKH# (48,30(17 # RU# 6<67(0/# D# PDQXIDFWXUHU# FRXOG# FKRRVH# QRW# WR# WDNH
DGYDQWDJH#RI#WKLV# (0,66,216 #WHVWLQJ#DOORZDQFH1

±#89#± 9393404052)',6##,(&+(,


6XEFODXVH#69153414#D,#8,

,I/# IRU# H[DPSOH/# WKH# DSSOLFDEOH# QDWLRQDO# UDGLR# UHJXODWLRQV# GR# QRW# KDYH# PDLQV# WHUPLQDO
GLVWXUEDQFH# YROWDJH# OLPLWV/# WKHQ# IRU# &,635# 44# (48,30(17# DQG# 6<67(06 /# WKH# PDLQV# WHUPLQDO
GLVWXUEDQFH# YROWDJH# UHTXLUHPHQWV# RI# &,635#44# DSSO\1# $OVR/# LI# WKH# DSSOLFDEOH# QDWLRQDO# UDGLR
UHJXODWLRQV#GR#QRW#VSHFLI\#OLPLWV#LQ#D#IUHTXHQF\#EDQG#IRU#ZKLFK#&,635#44#VSHFLILHV#OLPLWV/#WKHQ
IRU#&,635#44# (48,30(17# DQG# 6<67(06 /# WKH# UHTXLUHPHQWV# RI#&,635#44# LQ# WKDW# IUHTXHQF\# EDQG


DSSO\1

)RU# (48,30(17 # DQG# 6<67(06 # WKDW# LQFOXGH# UDGLR# HTXLSPHQW/# WKLV# VWDQGDUG# LV# QRW# LQWHQGHG# WR
VXEVWLWXWH#IRU#WKH# (0,66,216 #UHTXLUHPHQWV#RI#QDWLRQDO#UDGLR#UHJXODWLRQV1

6XEFODXVH#69153414#E,#4,


&,635#44#UHTXLUHV#WKH#DWWDFKPHQW#RI#DOO#FDEOHV#DQG#D# 1250$/#86(# FRQGLWLRQ#IRU#WKH# (48,30(17
RU# 6<67(0 1# 3 $7,(17 #FDEOHV# DUH#FRQVLGHUHG#SDUW# RI#WKLV#UHTXLUHPHQW1#,W# LV# QHFHVVDU\# WR# SURYLGH
VXIILFLHQW#VLPXODWLRQ#VR#WKDW#WKH# (48,30(17 #RU# 6<67(0#FDQ#RSHUDWH#LQ#D# 1250$/# 86(# FRQGLWLRQ1
7KLV# 3$7,(17 # VLPXODWLRQ# VKRXOG# EH# GHVLJQHG# VR# DV# QRW# WR# UHGXFH# WKH# (0,66,216 # RI# WKH
(48,30(17 # RU# 6<67(0 # RU# WR# DGG# XQLQWHQWLRQDO# (0,66,216 # IURP# WKH# VLPXODWRU1# 7KH# HIIHFW# RI# WKH
3$7,(17 # RQ# (0,66,216 # LV# QRW# FRQVLGHUHG# FULWLFDO># KRZHYHU/# LI# D# JHQHUDO# 3$7,(17 # 5)# PRGHO# LV


GHYHORSHG/#WKLV#ZLOO#EH#UHFRQVLGHUHG1

7R# DYRLG# VKXQWLQJ# WRR# PXFK# FXUUHQW# WR# JURXQG# GXULQJ# WKH# WHVW/# LW# LV# QHFHVVDU\# WR# VSHFLI\# DQ
XSSHU# ERXQG# IRU# XQLQWHQWLRQDO# FDSDFLWDQFH1# 7KH# 5830S)# YDOXH# VSHFLILHG# LQ# WKLV# VWDQGDUG# LV
KDUPRQL]HG#ZLWK#WKH#DUWLILFLDO#KDQG#VSHFLILHG#LQ#&,635#49041

6XEFODXVH#69153414#E,#5,

%HFDXVH# RI# WKH# YDULHW\# RI# 6<67(0# FRQILJXUDWLRQV/# WHVWLQJ# RI# VXE0 6<67(06 # LV# DOORZHG1# $Q\
VLPXODWRU# XVHG# LQ# OLHX# RI# DQ# DFWXDO# (48,30(17 # VKRXOG# SURSHUO\# UHSUHVHQW# WKH# HOHFWULFDO# DQG# LQ
VRPH# FDVHV# WKH# PHFKDQLFDO# FKDUDFWHULVWLFV# RI# WKH# LQWHUIDFH/# HVSHFLDOO\# ZLWK# UHVSHFW# WR# 5)
VLJQDOV#DQG#LPSHGDQFHV/#DV#ZHOO#DV#FDEOH#FRQILJXUDWLRQ#DQG#W\SHV1


6XEFODXVH#6915341514

0DJQHWLF#ILHOG# (0,66,216 #UHTXLUHPHQWV#EHORZ#<#N+]#DUH#XQGHU#FRQVLGHUDWLRQ1 59




6XEFODXVH#6915341614#D,

,(&#943330605# DQG# ,(&# 943330606# DUH# DSSOLFDEOH# RQO\# WR# HTXLSPHQW# ZLWK# D# 5$7(' # 0$,16
92/7$*( # LQFOXGLQJ# 563#9# DQG# WKDW# LV# LQWHQGHG# IRU# FRQQHFWLRQ# WR# WKH# 38%/,&# 0$,16# 1(7:25. 1# ,I
DQ# (48,30(17 # RU# 6<67(0 # LV# QRW# LQWHQGHG# WR# EH# FRQQHFWHG# WR# WKH# 38%/,&# 0$,16# 1(7:25. /# WKLV


UHTXLUHPHQW# LV# QRW#DSSOLFDEOH1# ([DPSOHV# RI# ORFDWLRQV#FRQQHFWHG# WR# WKH# 38%/,&# 0$,16# 1(7:25.
DUH# UHVLGHQFHV/# GRFWRUV¶# RIILFHV# DQG# VPDOO# FOLQLFV1# $# ORFDWLRQ# LV# VHUYHG# IURP# WKH# 38%/,&# 0$,16
1(7:25.# LI# PRUH# WKDQ# RQH# FXVWRPHU# LV# VHUYHG# IURP# WKH# VDPH# RXWSXW# RI# D# PHGLXP# RU# KLJK
YROWDJH#HOHFWULF#GLVWULEXWLRQ#WUDQVIRUPHU1

6XEFODXVH#6915341615#D,

6HH#$QQH[#$$$/#6XEFODXVH#6915341614#D,1


6XEFODXVH#69153514

)RU# ,0081,7< #WHVWLQJ/#WKH#WHVW#PHWKRGV#DQG#JXLGDQFH#IRU#VHOHFWLRQ#RI#WHVW#OHYHOV#WKDW#DSSHDU#LQ


WKH# DVVRFLDWHG# EDVLF# (0&# ,0081,7< # VWDQGDUGV# KDYH# EHHQ# IROORZHG/# H[FHSW# LQ# FDVHV# ZKHUH
WKHUH# DUH# VSHFLDO# FRQVLGHUDWLRQV# SDUWLFXODU# WR# (48,30(17 # DQG# 6<67(06 1# 'HYLDWLRQV# IURP# WKH


EDVLF#(0&# ,0081,7< #VWDQGDUGV#KDYH#EHHQ#NHSW#WR#D#PLQLPXP1




BBBBBBBBBBB
59 8QGHU#FRQVLGHUDWLRQ#E\#,(&#6&#::$#DQG#,(&#6&#95$1

9393404052)',6##,(&+(, ±#8:#±


6XEFODXVH#69153514#D,

7KH# SUDFWLFH# RI# PHGLFLQH# LQYROYHV# PDQ\# VSHFLDOLWLHV># WKXV/# WKHUH# ZLOO# E\# QHFHVVLW\# EH
(48,30(17 # DQG# 6<67(06 # WKDW# DUH# GHVLJQHG# WR# SHUIRUP# D# YDULHW\# RI# )81&7,216 1# 6RPH
)81&7,216 # LQYROYH# H1J1# PHDVXUHPHQW# RI# VLJQDOV# IURP# D# 3$7,(17 # WKDW# DUH# RI# YHU\# ORZ# OHYHOV
ZKHQ# FRPSDUHG# WR# (/(&7520$*1(7,&# 12,6(# OHYHOV# WKDW# FDQ# EH# FRXSOHG# LQWR# (48,30(17 # DQG
6<67(06 #GXULQJ#WKH# (/(&7520$*1(7,& # ,0081,7< #WHVWLQJ#VSHFLILHG# LQ#WKLV#VWDQGDUG1# %HFDXVH# RI


WKH# SURYHQ# EHQHILW# RI# PDQ\# VXFK# (48,30(17 # DQG# 6<67(06 /# WKLV# VWDQGDUG# DOORZV# WKH# ,0081,7<
7(67# /(9(/6 # WR# EH# ORZHUHG/# SURYLGHG# WKHUH# LV# VXIILFLHQW# MXVWLILFDWLRQ# EDVHG# RQ# SK\VLFDO/
WHFKQRORJLFDO# RU# SK\VLRORJLFDO# OLPLWDWLRQV1# 7KHUH# LV# D# UHFRPPHQGDWLRQ# LQ# '''15#D,# WKDW# WKLV
DOORZDQFH# EH# UHPRYHG# ZKHQ# WKLV# VWDQGDUG# LV# DSSOLHG# LQ# D# SURGXFW# VSHFLILF# VWDQGDUG# EHFDXVH/
IRU# D# VSHFLILF# SURGXFW/# LW# VKRXOG# EH# SRVVLEOH# WR# VSHFLI\# D# PLQLPXP# OHYHO# RI# ,0081,7< 1# 7KXV/# LI
MXVWLILHG/# ,0081,7<#7(67#/(9(/6 #ORZHU#WKDQ#WKH#,(&#93934# 7(67#/(9(/6 #RI#WKLV#VWDQGDUG#PD\#EH


VSHFLILHG# LQ# 3DUWLFXODU# 6WDQGDUGV# +,(&# 93934050[,># KRZHYHU/# DQ# DOORZDQFH# IRU# HYHQ# ORZHU
OHYHOV#WKDQ#WKDW#VKRXOG#QRW#EH#PDGH/#L1H1#VKRXOG#EH#UHPRYHG1

6XEFODXVH#69153514#F,

&RQVLGHUDWLRQ#VKRXOG#EH#JLYHQ#WR#,62#47<:4#DQG#,(&#939340407#IRU#WKLV#ULVN#DQDO\VLV1


6XEFODXVH#69153514#G,

&RQVLGHUDWLRQ#VKRXOG#EH#JLYHQ#WR#,62#47<:4#DQG#,(&#939340407#IRU#WKLV#ULVN#DQDO\VLV1

1RQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# RIWHQ# KDV# ,0081,7< # UHTXLUHPHQWV# WKDW# DUH# GLIIHUHQW# IURP

WKRVH# VSHFLILHG# E\# WKLV# VWDQGDUG1# 7KH# H[FOXVLRQ# IURP# ,0081,7< # WHVWLQJ# DFFRUGLQJ# WR# WKLV
VWDQGDUG# RI# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# WKDW# LV# QRW# H[SHFWHG# WR# DIIHFW# WKH# (66(17,$/
3(5)250$1&(# RU# VDIHW\# RI# WKH# 6<67(0 /# LI# WKH# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# H[KLELWV
'(*5$'$7,21 /# SHUPLWV# WKH# XVH# LQ# D# 6<67(0 # RI# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# WKDW# PD\# QRW
FRPSO\# ZLWK# WKH# UHTXLUHPHQWV# RI# WKLV# VWDQGDUG1# $Q# H[DPSOH# RI# VXFK# HTXLSPHQW# LV# D# SULQWHU
XVHG# LQ# D# 6<67(0# LQ# ZKLFK# WKH# LQIRUPDWLRQ# WR# EH# SULQWHG# UHPDLQV# LQ# WKH# PHPRU\# RI# DQ
(48,30(17 # XQWLO# LW# LV# LQWHQWLRQDOO\# GHOHWHG/# DQG# WKH# LQIRUPDWLRQ# FDQ# EH# UH0WUDQVPLWWHG# WR# WKH


SULQWHU#DQG#UH0SULQWHG#LQ#WKH#FDVH#RI#LQWHUIHUHQFH#ZLWK#SULQWHU#RSHUDWLRQ1#,QVWUXFWLRQV#IRU#XVH#RI
WKH# 0(',&$/ # (/(&75,&$/# 6<67(0# VKRXOG# FDXWLRQ# WKH# XVHU# WR# YHULI\# SURSHU# RSHUDWLRQ# RI# WKH
SULQWHU# EHIRUH# GHOHWLQJ# VWRUHG# GDWD1# ,Q# FRQWUDVW/# D# QRQ0PHGLFDO# HOHFWULFDO# HTXLSPHQW# +H1J1# ,7(,
XVHG# DV# D# 3$7,(17 # PRQLWRULQJ# FHQWUDO# VWDWLRQ# ZRXOG# OLNHO\# EH# VXEMHFW# WR# WKH# ,0081,7<
UHTXLUHPHQWV#RI#WKLV#VWDQGDUG/# GHSHQGLQJ#XSRQ#WKH#UHVXOWV#RI# D# ULVN# DQDO\VLV/# EHFDXVH# ORVV#RU


FRUUXSWLRQ#RI# 3$7,(17 #LQIRUPDWLRQ#DW#WKH#PRQLWRULQJ#FHQWUDO#VWDWLRQ#FDQ#UHDVRQDEO\#EH#H[SHFWHG


WR#DIIHFW#WKH#VDIHW\#RI#WKH# 3$7,(17 1

2QFH# HTXLSPHQW # WKDW# FRXOG# DIIHFW# WKH# (66(17,$/# 3(5)250$1&(# RU# VDIHW\# RI# WKH# 6<67(0# KDV
EHHQ#LGHQWLILHG/#WKDW#HTXLSPHQW # VKRXOG#PHHW#WKH#UHTXLUHPHQWV#RI#6915351


6XEFODXVH#69153514#H,

7KH# UHTXLUHPHQW# WKDW# 3$7,(17 0 &283/('# (48,30(17# DQG# 6<67(06 # VKDOO# EH# WHVWHG# VR# WKDW# WKH
3$7,(17 # FRXSOLQJ# SRLQW# LV# ZLWKLQ# WKH# WHVW# HQYLURQPHQW# DQG# GRHV# QRW# KDYH# DQ# LQWHQWLRQDO
FRQGXFWLYH#RU#FDSDFLWLYH#FRQQHFWLRQ#WR#JURXQG#GXULQJ#WHVWLQJ/#H[FHSW#DV#RWKHUZLVH#VSHFLILHG#LQ
D# VXEFODXVH# RI# WKLV# VWDQGDUG/# LV# WR# HQVXUH# WKDW# WKH# 3$7,(17 # FDEOH# LV# WHVWHG# LQ# D# ZRUVW0FDVH
FRQGLWLRQ1# ,Q# FDVHV# ZKHUH# DQ# LQWHQWLRQDO# FDSDFLWLYH# FRQQHFWLRQ# KDV# EHHQ# VSHFLILHG# +L1H1# WKH


DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW,/# WKLV# LV# FRQVLGHUHG# WKH# ZRUVW# FDVH1# 8QLQWHQWLRQDO# FDSDFLWDQFH
EHWZHHQ# WKH# 3$7,(17 # FRXSOLQJ# SRLQW# DQG# JURXQG# VKRXOG# EH# OLPLWHG# WR# 583#S)1# ,(&#9393404
WUHDWV#WKH#FRQGLWLRQV#LQ# ZKLFK#WKH# 3$7,(17 # LV#IORDWLQJ# DQG# LQ# ZKLFK# WKH# 3$7,(17 #LV# JURXQGHG# DV
1250$/#&21',7,216 1#+RZHYHU/#IURP#DQ#5)#SHUVSHFWLYH/#LW#LV#XQOLNHO\#WKDW#D# 3$7,(17 #ZRXOG#HYHU
EH# DV# HIIHFWLYHO\# JURXQGHG# LQ# D# PHGLFDO# HQYLURQPHQW# DV# ZRXOG# EH# WKH# FDVH# LQ# DQ# (0&# WHVW


HQYLURQPHQW# LI# D# GLUHFW# JURXQG# UHIHUHQFH# ZHUH# XVHG1# $V# D# UHVXOW/# WKH# DUWLILFLDO# KDQG# DQG# 5&
HOHPHQW#VSHFLILHG#LQ#&,635#4904#DUH#XVHG#WR#UHSUHVHQW#WKH#JURXQGHG#FRQGLWLRQ1


±#8;#± 9393404052)',6##,(&+(,


6XEFODXVH#69153514#I,

7KH#UHTXLUHPHQW#WR#WHVW#YDULDEOH#JDLQ# (48,30(17# DQG # 6<67(06 #DW# WKH#KLJKHVW#JDLQ#VHWWLQJ#WKDW


DOORZV#SURSHU#RSHUDWLRQ# LV#QHFHVVDU\#EHFDXVH# WKH#VLJQDO0WR0QRLVH#UDWLR# LQ# WKLV#PRGH# ZRXOG# EH
VLJQLILFDQWO\# ZRUVH# WKDQ# LI# WHVWHG# ZLWK# D# ORZ# JDLQ# VHWWLQJ/# ZKLFK# PLJKW# OHDG# WR# DQ# HUURQHRXV
GHWHUPLQDWLRQ#RI#VDWLVIDFWRU\#SHUIRUPDQFH1


6XEFODXVH#69153514#J,

'HWDLOV# RI# VLPXODWRUV# XVHG# IRU# 3$7,(17 0 &283/('# (48,30(17 /# XVLQJ# WKH# JXLGHOLQHV# LQ# WKLV
VWDQGDUG/#VKRXOG#EH#GHILQHG#PRUH#VSHFLILFDOO\#LQ#3DUWLFXODU#6WDQGDUGV#+,(&#93934050;#DQG#,62
VWDQGDUGV#EDVHG#RQ#,(&#9393404,1#&DUH#VKRXOG#EH#WDNHQ#WKDW#WKH#VLPXODWRUV#XVHG#SHUWXUE#WKH
WHVW# PLQLPDOO\# DQG# GR# QRW# H[KLELW# '(*5$'$7,21 # DV# D# UHVXOW# RI# WKH# ,0081,7<# 7(67# /(9(/ 1# 7KH


3$7,(17 # SK\VLRORJLFDO# VLPXODWRU# LV# QRW# LQWHQGHG# WR# UHSUHVHQW# WKH# 5)# FKDUDFWHULVWLFV# RI# WKH
KXPDQ# ERG\1# $V# D# UHVXOW/# WKHUH# PD\# EH# GLIIHUHQFHV# EHWZHHQ# WKH# 5)# HQHUJ\# FRXSOHG# LQWR# WKH
(48,30(17 # RU# 6<67(0 # ZKHQ# XVLQJ# RQO\# D# 3$7,(17 # SK\VLRORJLFDO# VLPXODWRU# DV# FRPSDUHG# WR# XVH
RQ#DQ#DFWXDO# 3$7,(17 1

6HH#$QQH[#$$$/#6XEFODXVH#69153514#H,1


7KH# UHTXLUHPHQWV# IRU# (48,30(17 # RU# 6<67(0# VHQVLWLYLW\# DGMXVWPHQWV# DQG# VHWWLQJ# RI# WKH
VLPXODWHG# 3$7,(17 # SK\VLRORJLFDO# VLJQDO# DUH# LQWHQGHG# WR# HQVXUH# WKDW# WKH# (48,30(17 # RU# 6<67(0
ZLOO# RSHUDWH# DV# LQWHQGHG# RYHU# WKH# UDQJH# RI# LQSXW# 3$7,(17 # SK\VLRORJLFDO# VLJQDOV# IRU# ZKLFK# WKH
(48,30(17 #RU# 6<67(0 #ZDV#GHVLJQHG1

)RU# (48,30(17 # DQG# 6<67(06 # ZLWKRXW# PDQXDO# VHQVLWLYLW\# DGMXVWPHQWV# +QRQ0DGMXVWDEOH# JDLQ# RU
DXWRPDWLF# JDLQ# FRQWURO,# LW# LV# DVVXPHG# WKDW# GXULQJ# XVH# RI# WKH# (48,30(17 # RU# 6<67(0/# DQ
23(5$725 # ZLOO# QRW# DOZD\V# EH# SUHVHQW# WR# PRQLWRU# WKH# 3$7,(17 # VLJQDO# DQG# HQVXUH# WKDW# WKH
(48,30(17 #RU# 6<67(0 # LV# RSHUDWLQJ# DFFRUGLQJ#WR#WKH# $&&203$1<,1*# '2&80(176 1#+RZHYHU/# LW#LV
DVVXPHG#WKDW#DQ# 23(5$725 # ZRXOG# EH#DEOH# WR#VHH#DQ# LQGLFDWLRQ# RI# LQDGHTXDWH#VLJQDO# VWUHQJWK1
)RU# WKLV# FDVH/# LW# LV# DSSURSULDWH# WR# WHVW# WKH# (48,30(17 # RU# 6<67(0# ZLWK# WKH# LQSXW# VLPXODWHG
3$7,(17 #SK\VLRORJLFDO#VLJQDO#VHW#WR#HLWKHU#WKH#ORZHVW#DPSOLWXGH#RU#YDOXH#FRQVLVWHQW#ZLWK#QRUPDO


RSHUDWLRQ# VSHFLILHG# E\# WKH# PDQXIDFWXUHU# RU# WR# WKH# PLQLPXP# DPSOLWXGH# RU# YDOXH# DW# ZKLFK
WKH# (48,30(17 # RU# 6<67(0 # RSHUDWHV# DV# LQWHQGHG1# 5HTXLUHPHQWV# IRU# WKH# PLQLPXP# DPSOLWXGH# RU
YDOXH# DW# ZKLFK# WKH# (48,30(17 # RU# 6<67(0# VKRXOG# RSHUDWH# DV# LQWHQGHG# FDQ# EH# GHILQHG# PRUH
VSHFLILFDOO\#LQ#3DUWLFXODU#6WDQGDUGV#+,(&#93934050;#DQG#,62#VWDQGDUGV#EDVHG#RQ#,(&#9393404,1


)RU# (48,30(17 # DQG# 6<67(06 # WKDW# KDYH# D# PDQXDO# VHQVLWLYLW\# DGMXVWPHQW/# LW# LV# DVVXPHG# WKDW
GXULQJ# XVH# RI# WKH# (48,30(17 # RU# 6<67(0/# WKH# 23(5$725 # ZLOO# EH# SUHVHQW# WR# PRQLWRU# WKH# 3$7,(17
VLJQDO# DQG#HQVXUH# WKDW#WKH# (48,30(17 # RU# 6<67(0# LV#RSHUDWLQJ# DFFRUGLQJ# WR# WKH# $&&203$1<,1*
'2&80(176 1# )RU# WKLV# FDVH/# LW# LV# DSSURSULDWH# WR# WHVW# WKH# (48,30(17 # RU# 6<67(0 # ZKLOH# LW# LV
RSHUDWLQJ# DW# LWV# PRVW# VHQVLWLYH# VHWWLQJ# ZLWK# D# VLPXODWHG# 3$7,(17 # SK\VLRORJLFDO# VLJQDO# VHW


DFFRUGLQJ#WR#WKH#PDQXIDFWXUHU¶V#VHQVLWLYLW\#DGMXVWPHQW#JXLGHOLQHV1

6XEFODXVH#69153514#K,

:KLOH# WKH# HIIHFW# RI# WKH# ,0081,7<# 7(67# /(9(/ # RQ# VRPH# )81&7,216 # RI# DQ# (48,30(17 # RU# 6<67(0
+H1J1#WLGDO#YROXPH#GHOLYHUHG#E\#D#YHQWLODWRU/#2 5 #YDOXH#GLVSOD\HG#E\#DQ#LQVSLUHG#2 5 #PRQLWRU,#PD\
EH# UHDGLO\# DSSDUHQW# GXULQJ# ,0081,7< # WHVWLQJ/# RWKHUV# +H1J1# DLU# EXEEOH# GHWHFWLRQ# LQ# D# GLDO\VLV
6<67(0 ,# PD\# QRW1# ,W# LV# HVVHQWLDO# WKDW# WKH# DELOLW\# RI# WKH# (48,30(17 # RU# 6<67(0 # WR# SURYLGH# WKH


(66(17,$/#3(5)250$1&(# EH#DVVHVVHG/#LQ#D#SUDFWLFDO#PDQQHU/#GXULQJ# ,0081,7< #WHVWLQJ1

,Q#WKH#FDVH# RI#FULWLFDO#DODUPV#IRU# H[DPSOH/# LW#PD\# QRW# EH# SUDFWLFDO/# SDUWLFXODUO\# GXULQJ# UDGLDWHG
5)# ,0081,7< #WHVWLQJ/#WR#UHSHDWHGO\#HVWDEOLVK#QRUPDO#YDOXHV#RI# 3$7,(17 #RU# (48,30(17 #RU# 6<67(0
SDUDPHWHUV/#VLPXODWH#DQ#DODUP#FRQGLWLRQ/#UH0HVWDEOLVK#QRUPDO#YDOXHV#DQG#UHVHW# WKH# (48,30(17


RU# 6<67(0 1# )RU# SDUDPHWHUV# WKDW# DUH# QRUPDOO\# GLVSOD\HG/# LW# ZRXOG# EH# VXIILFLHQW# WR# REVHUYH# WKH
GLVSOD\HG#YDOXHV#WR#GHWHUPLQH#LI#WKH\#DUH#LQIOXHQFHG#E\#D# ',6785%$1&( #LQ#D#PDQQHU#WKDW#FRXOG
FDXVH# WKH# (48,30(17 # RU# 6<67(0# WR# IDLO# WR# DODUP# XQGHU# DODUP# FRQGLWLRQV1# ( 48,30(17 # DQG
6<67(06 # VKRXOG# EH# GHVLJQHG# WR# SHUPLW# REVHUYDWLRQ# DQG# YHULILFDWLRQ/# GXULQJ# WKH# WHVW/# RI
SDUDPHWHUV# DVVRFLDWHG# ZLWK# (66(17,$/# 3(5)250$1&( # +H1J1# XVHG# WR# GHULYH# FULWLFDO# DODUPV,1


+RZHYHU/#IRU# SDUDPHWHUV#WKDW# DUH# QRW# QRUPDOO\# GLVSOD\HG/# WKDW# DUH# XVHG# WR# SHUIRUP# (66(17,$/
3(5)250$1&( # )81&7,216 # +H1J1# WULJJHULQJ# RI# FULWLFDO# DODUPV,# DQG# RQ# ZKLFK# WKH# HIIHFW# RI# WKH
',6785%$1&( # PLJKW# QRW# EH# UHDGLO\# DSSDUHQW# GXULQJ# ,0081,7< # WHVWLQJ/# VSHFLDO# WHVW# VRIWZDUH# RU

9393404052)',6##,(&+(, ±#8<#±


KDUGZDUH# PXVW# EH# XVHG# VR# WKDW# WKH# HIIHFW# RI# WKH# ',6785%$1&( # RQ# WKHVH# SDUDPHWHUV# FDQ# EH
REVHUYHG#GXULQJ#WKH#WHVW1
127( $VVHVVPHQW# RI# GLVSOD\HG# YDOXHV# GHSHQGV# LQ# SDUW# RQ# WKH# DELOLW\# RI# WKH# REVHUYHU# WR# FRUUHFWO\# GLVWLQJXLVK
EHWZHHQ#D#QRUPDOO\0IXQFWLRQLQJ#GLVSOD\#DQG#D#%IUR]HQ%#GLVSOD\1

,Q# PDQ\# FDVHV/# DQDORJXH# FLUFXLWU\# LV# PRUH# VHQVLWLYH# WR# ',6785%$1&(6 # WKDQ# GLJLWDO# FLUFXLWU\1


)XUWKHU/#LQ#PRGHUQ#HTXLSPHQW/#GLJLWDO#V\VWHPV#DUH#RIWHQ#XVHG#WR#SURFHVV#DQG#GLVSOD\#DQDORJXH
VLJQDOV1#7KHUHIRUH#LI#DQDORJXH#VLJQDOV#DUH#VHQVHG/#DPSOLILHG#SURSHUO\# DQG#FRUUHFWO\# GLVSOD\HG/
LW#FDQ#LQ#PDQ\#FDVHV#EH#DVVXPHG#WKDW#WKH#ORJLFDO#GHFLVLRQV#RI#WKH# (48,30(17 #RU# 6<67(0#ZRXOG
EH#FRUUHFW1#+RZHYHU/# DV#GLJLWDO#FLUFXLWU\#FDQ#VRPHWLPHV#EH# DIIHFWHG# E\# ',6785%$1&(6 #DV# ZHOO/
FDUH#VKRXOG#EH#H[HUFLVHG#LQ#DVVHVVLQJ#SURSHU#GLVSOD\#RI#YDOXHV#DQG#SURSHU#ORJLFDO#GHFLVLRQV1


$Q# H[DPSOH# RI# D# )81&7,21 # DVVRFLDWHG# ZLWK# (66(17,$/# 3(5)250$1&( # DQG# WKH# RSHUDWLRQ# RI
ZKLFK# FDQ# QRUPDOO\# EH# REVHUYHG# DQG# YHULILHG# GXULQJ# ,0081,7< # WHVWLQJ# LV# WKH# WLGDO# YROXPH
GHOLYHUHG# E\# D# YHQWLODWRU1# 7KLV# SDUDPHWHU# ZRXOG# QRUPDOO\# EH# PHDVXUHG# ZLWK# WKH# XVH# RI# D
YHQWLODWRU#WHVWHU#LQ#RUGHU#WR#DVVHVV#WKH#SHUIRUPDQFH#RI#WKH#YHQWLODWRU#GXULQJ#WKH#WHVW1

$QRWKHU#H[DPSOH#RI#D# )81&7,21 #DVVRFLDWHG#ZLWK# (66(17,$/# 3(5)250$1&( #DQG#WKH#RSHUDWLRQ#RI


ZKLFK# FDQ# QRUPDOO\# EH# REVHUYHG# DQG# YHULILHG# GXULQJ# ,0081,7< # WHVWLQJ# LV# DQ# (48,30(17 # RU


6<67(0 # WKDW# GLVSOD\V# LQVSLUHG# 2 5 1# $VVXPLQJ# WKDW# WKH# GLVSOD\HG# 2 5 # YDOXH# LV# XVHG# WR# WULJJHU
DODUPV#DQG#WKDW#LW#FDQ#EH#GHWHUPLQHG#WKDW#WKH#GLVSOD\#FRQWLQXHV#WR#EH#XSGDWHG#QRUPDOO\/#LW#FDQ
EH# DVVXPHG# WKDW# LI# WKH# DFFXUDF\# RI# WKH# 2 5 # YDOXH# GLVSOD\HG# GXULQJ# ,0081,7< # WHVWLQJ# UHPDLQV
ZLWKLQ# DQ# DFFHSWDEOH# UDQJH/# WKHQ# D# ORZ# 2 5 # DODUP# ZRXOG# EH# DFWLYDWHG# LI# WKH# DFWXDO# 2 5 # ZHUH# WR

IDOO#EHORZ#D#W\SLFDO#DODUP#WKUHVKROG1#,W#ZRXOG#QRW#EH#QHFHVVDU\#WR#DGMXVW#WKH#DODUP#WKUHVKROG#VR
WKDW#DQ#DODUP#DFWXDOO\#RFFXUUHG/#DV#WKLV#ZRXOG#VORZ#WKH#WHVWLQJ#FRQVLGHUDEO\1

$Q# H[DPSOH# RI# D# )81&7,21 # DVVRFLDWHG# ZLWK# (66(17,$/# 3(5)250$1&( # DQG# WKH# RSHUDWLRQ# RI
ZKLFK# FDQQRW# QRUPDOO\# EH# REVHUYHG# RU# YHULILHG# GXULQJ# ,0081,7< # WHVWLQJ# LV# D# EXEEOH# GHWHFWLRQ
DODUP# LQ# GLDO\VLV# (48,30(17 1# %HFDXVH# WKH# YDOXH# VHQVHG# IURP# WKH# EXEEOH# GHWHFWRU# LV# QRW
QRUPDOO\# GLVSOD\HG/# LW# ZRXOG# EH# QHFHVVDU\# WR# DGG# D# GLVSOD\# RI/# IRU# H[DPSOH/# YLVFRVLW\# RU


DFRXVWLFDO# LPSHGDQFH# LQ# RUGHU# WR# GHWHUPLQH# LI# WKLV# SDUDPHWHU# ZRXOG# EH# DIIHFWHG# E\# WKH
,0081,7<#7(67#/(9(/ #LQ#D#ZD\#WKDW#ZRXOG#SUHYHQW#WKH#EXEEOH#DODUP#IURP#DFWLYDWLQJ1

6XEFODXVH#69153514#L,


$Q\#VLPXODWRU#XVHG#LQ#OLHX#RI#DFWXDO# (48,30(17 #VKRXOG#SURSHUO\#UHSUHVHQW#WKH#HOHFWULFDO#DQG#LQ


VRPH# FDVHV# WKH# PHFKDQLFDO# FKDUDFWHULVWLFV# RI# WKH# LQWHUIDFH/# HVSHFLDOO\# ZLWK# UHVSHFW# WR# 5)
VLJQDOV#DQG#LPSHGDQFHV/#DV#ZHOO#DV#FDEOH#FRQILJXUDWLRQ#DQG#W\SHV1

6XEFODXVH#69153514#M,


$# UHDVRQDEOH# VWDUWLQJ# SRLQW# WR# TXDQWLI\# WKH# DPRXQW# RI# '(*5$'$7,21# +H1J1# HUURU,# WKDW# PLJKW# EH
DFFHSWDEOH# GXULQJ# ,0081,7< #WHVWLQJ/# LQ#DFFRUGDQFH# ZLWK# WKH# UHTXLUHPHQWV# RI# 69153514# M,# LV# WKH
PDQXIDFWXUHU¶V#DFFXUDF\#VSHFLILFDWLRQ#LQ# WKH# $&&203$1<,1*# '2&80(176 /# ZLWK# WKH#PRGLILFDWLRQ
WKDW# DOO# RWKHU# VRXUFHV# RI# HUURU# QRUPDOO\# DFFRXQWHG# IRU# LQ# WKH# DFFXUDF\# VSHFLILFDWLRQ# DUH
GLVUHJDUGHG#DQG#WKH#WRWDO#DFFXUDF\#GHYLDWLRQ#LV#DOORFDWHG#WR#WKH#UHVSRQVH#RI#WKH# (48,30(17 #RU
6<67(0# WR# WKH # ,0081,7<# 7(67# /(9(/ 1# ,I# DGGLWLRQDO# DFFXUDF\# GHYLDWLRQV# DUH# FRQVLGHUHG
DFFHSWDEOH/# WKH# GHYLDWLRQ# VKRXOG# EH# GHWHUPLQHG# IURP# FRQVXOWDWLRQV# ZLWK# FOLQLFLDQV# ZKRVH


H[SHULHQFH#DQG# DUHD# RI# H[SHUWLVH# LQFOXGH# WKH# XVH# RI# WKH# SDUWLFXODU# (48,30(17 # RU# 6<67(0/# DQG
WKLV#LQIRUPDWLRQ#VKRXOG#EH#LQFOXGHG#LQ#WKH# $&&203$1<,1*#'2&80(176 1

,I#ORZHU# &203/,$1&(#/(9(/6 #DUH#MXVWLILHG#DV#VSHFLILHG#LQ#69153514#D,#WKH# ,0081,7<#/(9(/ #PD\#EH


GHWHUPLQHG#E\#UHGXFLQJ#WKH# ,0081,7<#7(67#/(9(/ #XQWLO#WKH#FRPSOLDQFH#FULWHULD#LQ#69153514#M,#DUH
PHW1# )RU# H[DPSOH/# LI# ORZHU# &203/,$1&(# /(9(/6 # DUH# MXVWLILHG# DQG# WKH# ,(&# 93934# 7(67# /(9(/


UHVXOWV# LQ# IDOVH# 3$7,(17 # DODUPV/# WKH# ,0081,7<# 7(67# /(9(/ # PD\# EH# UHGXFHG# WR# WKH# SRLQW# MXVW
EHORZ# ZKLFK# WKH# IDOVH# 3$7,(17 # DODUPV# GR# QRW# RFFXU1# 7KLV# UHGXFHG# WHVW# OHYHO# ZLOO# EH# WKH
,0081,7<# /(9(/ 1# 7KH# &203/,$1&(# /(9(/ # FDQ# WKHQ# EH# GHWHUPLQHG# IURP# WKH# ,0081,7<# /(9(/ # DV
VSHFLILHG#LQ#91;161534#D,#9,#VHFRQG#GDVK/#91;161534#E,#5,#RU#91;161534#F,#7,#VHFRQG#GDVK1


±#93#± 9393404052)',6##,(&+(,


([DPSOHV#RI#FRQIRUPDQFH#WR#WKH#FRPSOLDQFH#FULWHULD=

−# DQ# LPDJLQJ# 6<67(0# GLVSOD\V# DQ# LPDJH# WKDW# PD\# EH# DOWHUHG/# EXW# LQ# D# ZD\# WKDW# LV
UHFRJQL]DEOH# DV# RWKHU# WKDQ# SK\VLRORJLF# DQG# WKDW# ZRXOG# QRW# DIIHFW# WKH# GLDJQRVLV# RU
WUHDWPHQW>
−# D# KHDUW# UDWH# PRQLWRU# GLVSOD\V# D# KHDUW# UDWH# WKDW# PD\# EH# LQ# HUURU/# EXW# E\# DQ# DPRXQW# WKDW# LV


QRW#FOLQLFDOO\#VLJQLILFDQW>
−# D# 3$7,(17 # PRQLWRU# H[KLELWV# D# VPDOO# DPRXQW# RI# QRLVH# RU# D# WUDQVLHQW# RQ# D# ZDYHIRUP# DQG# WKH
QRLVH#RU#WUDQVLHQW#LV#UHFRJQL]DEOH#DV#RWKHU# WKDQ# SK\VLRORJLF# DQG# GRHV# QRW# DIIHFW#GLDJQRVLV
RU#WUHDWPHQW1

([DPSOHV#RI# (48,30(17 #DQG# 6<67(06 #ZLWK#PXOWLSOH# )81&7,216 =


−# PXOWL0SDUDPHWHU#PRQLWRUV>
−# DQDHVWKHVLD# 6<67(06 #ZLWK#PRQLWRUV>
−# YHQWLODWRUV#ZLWK#PRQLWRUV>
−# PXOWLSOH#LQVWDQFHV#RI#WKH#VDPH# )81&7,21 #+H1J1#PXOWLSOH#LQYDVLYH#EORRG#SUHVVXUH#VHQVRUV,1


)DLOXUH# RI# WKHUDS\# (48,30(17 # WR# WHUPLQDWH# D# WUHDWPHQW# DW# WKH# LQWHQGHG# WLPH# LV# FRQVLGHUHG
FHVVDWLRQ#RU#LQWHUUXSWLRQ#RI#DQ#LQWHQGHG#RSHUDWLRQ#UHODWHG#WR# (66(17,$/#3(5)250$1&( 1

,I#WKH#HIIHFW#RI#WKH#WHVW#VLJQDO#RQ#DQ# (48,30(17# RU #6<67(0# LV#VR#EULHI#DV#WR#EH#WUDQVSDUHQW#WR#WKH



3$7,(17 # RU# 23(5$725 # DQG# GRHV# QRW# DIIHFW# GLDJQRVLV/# PRQLWRULQJ# RU# WUHDWPHQW# RI# WKH# 3$7,(17 /
WKLV# FDQ# EH# FRQVLGHUHG# QRW# WR# EH# FHVVDWLRQ# RU# LQWHUUXSWLRQ# RI# DQ# LQWHQGHG# RSHUDWLRQ1# )RU
H[DPSOH/# LI# LQ#UHVSRQVH# WR#WKH# ,0081,7<# 7(67# /(9(/ # D# YHQWLODWRU# VWRSV# SXPSLQJ# IRU# 83# PV# DQG
WKHQ# UHVXPHV# RSHUDWLRQ# VXFK# WKDW# DFFXUDF\# LV# ZLWKLQ# DFFHSWDEOH# OLPLWV/# WKLV# ZRXOG# QRW# EH
FRQVLGHUHG#FHVVDWLRQ#RU#LQWHUUXSWLRQ#RI#DQ#LQWHQGHG#RSHUDWLRQ1

6XEFODXVH# 69153514# M,# UHTXLUHV# WKDW# (48,30(17# DQG # 6<67(06# UHPDLQ# VDIH# XQGHU# WKH# WHVW


FRQGLWLRQV# RI# 6915351# $# ULVN# DQDO\VLV# VKRXOG# EH# SHUIRUPHG# WR# LGHQWLI\# WKH# VDIHW\# FULWHULD# WR# EH
PRQLWRUHG# GXULQJ# ,0081,7< # WHVWLQJ1 # &RQVLGHUDWLRQ# VKRXOG# EH# JLYHQ# WR# ,62#47<:4# DQG
,(&#939340407#IRU#WKLV#ULVN#DQDO\VLV1

6XEFODXVH#69153514#N,


,I/#IRU#H[DPSOH/# QDWLRQDO#UDGLR#UHJXODWLRQV#VSHFLI\# ,0081,7< #UHTXLUHPHQWV# RQO\# IRU#UDGLDWHG# 5)


HOHFWURPDJQHWLF# ILHOGV/# WKHQ# WKH# RWKHU# ,0081,7<# WHVWV# RI# WKLV# VWDQGDUG# VKDOO# DSSO\# WR# WKH# UDGLR
HTXLSPHQW1# 1RWH# WKDW# DFFRUGLQJ# WR# 69153516# D,/# UHFHLYHUV# RI# 5)# HOHFWURPDJQHWLF# HQHUJ\# DUH
H[HPSW#IURP#UDGLDWHG#5)#HOHFWURPDJQHWLF#ILHOG# ,0081,7<# UHTXLUHPHQWV#LQ#WKH#H[FOXVLRQ#EDQG#RI


WKH#UHFHLYHU1

6HH# $QQH[# $$$/# 6XEFODXVH# 91;161534# D,# 8# UHJDUGLQJ# WKH# PHDQLQJ# RI# ORZHU# ,0081,7<# 7(67
/(9(/6 # IRU# WKH# ,(&#9433307044# ,0081,7< # WHVW1# ,Q# DGGLWLRQ/# LI# IRU# H[DPSOH# WKH# QDWLRQDO# UDGLR
UHJXODWLRQV#VSHFLI\#UDGLDWHG# 5)#HOHFWURPDJQHWLF#ILHOG# ,0081,7<# RYHU#D#PRUH# QDUURZ# IUHTXHQF\
UDQJH# WKDQ# GRHV#WKLV#VWDQGDUG/# WKRVH# UHTXLUHPHQWV# DUH# QRW# FRQVLGHUHG# WR# EH# JUHDWHU# RU# HTXDO
WR#WKRVH#GHWHUPLQHG#LQ#DFFRUGDQFH#ZLWK#69153514#D,#RI#WKLV#VWDQGDUG1

)RU# (48,30(17 # DQG# 6<67(06 # WKDW# LQFOXGH# UDGLR# HTXLSPHQW/# WKLV# VWDQGDUG# LV# QRW# LQWHQGHG# WR


VXEVWLWXWH#IRU#WKH# ,0081,7< #UHTXLUHPHQWV#RI#QDWLRQDO#UDGLR#UHJXODWLRQV1

6XEFODXVH#69153515#D,

$FFRUGLQJ# WR# ,(&# 943330705/# WKH# ,0081,7<# 7(67# /(9(/ # RI# ±7#N9# IRU# ERWK# DLU# DQG# FRQWDFW


GLVFKDUJH#DUH#DGHTXDWH#IRU#WKH#PDWHULDOV#RI#ZRRG/#FRQFUHWH#DQG#FHUDPLF#DW#DOO#KXPLGLW\# OHYHOV
+H1J1#ZKHQ#IORRUV#FRQVLVW#RI#WKHVH#PDWHULDOV,1 5:#+RZHYHU/#WKH# ,0081,7<#7(67#/(9(/ #RI#±;#N9#IRU
DLU#DQG#±9#N9#IRU#FRQWDFW#LV#DSSURSULDWH#IRU#WKH#PDMRULW\#RI#PHGLFDO#HQYLURQPHQWV1


BBBBBBBBBBB
5:# 6HH#,(&#943330705=4<<81

9393404052)',6##,(&+(, ±#94#±


( 48,30(17 # DQG# 6<67(06 # PXVW# PHHW# 69153514# M,# GXULQJ# WKH# ,0081,7< # WHVW1# +RZHYHU/# IRU# PDQ\
)81&7,216 # RI# (48,30(17 # DQG# 6<67(06 /# LW# LV# QRW# SUDFWLFDO# WR# DVVHVV# SHUIRUPDQFH# GXULQJ
LQGLYLGXDO# WUDQVLHQW# ',6785%$1&(6 # +H1J1# LQ# WKH# (6'/# (OHFWULFDO# IDVW# WUDQVLHQW# DQG# EXUVW/# DQG
6XUJH# ,0081,7<# WHVWV,1#7KHUHIRUH/#IRU#WKHVH# )81&7,216 /#³GXULQJ«# WKH#WHVW´#PD\# EH#LQWHUSUHWHG
LQ# WKH# JHQHUDO# VHQVH/# L1H1# GXULQJ# WKH# ZKROH# RI# WKH# WHVW# VHTXHQFH/# UDWKHU# WKDQ# GXULQJ# H1J1# DQ
LQGLYLGXDO#LPSXOVH1#6HH#DOVR#$QQH[#$$$/#6XEFODXVH#69153514#M,#UHJDUGLQJ#WKH#LQWHUSUHWDWLRQ#RI
³FHVVDWLRQ#RU#LQWHUUXSWLRQ´#IRU#EULHI#HIIHFWV#RQ#WKH# (48,30(17 #RU# 6<67(01


6LPLODUO\/# (48,30(17 # DQG# 6<67(06 # PXVW# PHHW# 69153514# M,# DIWHU# WKH# ,0081,7< # WHVW1# +RZHYHU/
WKHUH# DUH# DOVR#SUDFWLFDO#OLPLWDWLRQV# RQ# WKH# LQWHUSUHWDWLRQ# RI#³DIWHU´1# 2FFDVLRQDOO\/# WKH# HIIHFWV# RI
DQ# ,0081,7<# 7(67# /(9(/# PD\# QRW#PDQLIHVW# XQWLO# DIWHU#WKH# ',6785%$1&( #LV#UHPRYHG#+H1J1#IRU# WKH
5DGLDWHG#5)#HOHFWURPDJQHWLF#ILHOGV# ,0081,7< #WHVW,1#7KHUH#FDQ#DOVR#EH#ODWHQW#HIIHFWV#FDXVHG#E\
WKH# ,0081,7<# 7(67# /(9(/ 1# +RZHYHU/# LQ# JHQHUDO/# LI# WKH# (48,30(17# RU# 6<67(0# FRQWLQXHV# WR # PHHW


69153514# M,# IRU# D# UHDVRQDEOH# SHULRG# RI# WLPH# +H1J1# WKH# GZHOO# WLPH# RI# WKH# (48,30(17 # RU# 6<67(0
GHWHUPLQHG# DFFRUGLQJ# WR# 69153515# E,# 7,# RU# WKH# UHFRYHU\# WLPH# RI# WKH# (48,30(17 # RU# 6<67(0
VSHFLILHG# E\# WKH# PDQXIDFWXUHU,# DIWHU# WKH# ,0081,7< # WHVW# VHTXHQFH# LV# FRPSOHWHG/# WKLV# PD\# EH
LQWHUSUHWHG#DV#PHHWLQJ#69153514#M,#³DIWHU#WKH#WHVW´1

6XEFODXVH#69153515#E,#4,


7KH# UHTXLUHPHQW# WKDW# WKH# GHWHUPLQDWLRQ# RI# FRPSOLDQFH# EH# EDVHG# XSRQ# WKH# DSSOLFDWLRQ# RI
LQGLYLGXDO# (/(&75267$7,&# ',6&+$5*(6# HQVXUHV# WKDW# WKH# WHVW# LV# UHSUHVHQWDWLYH# RI# DFWXDO# XVH
FRQGLWLRQV1#'XULQJ#WHVWLQJ/#WKH#DSSOLFDWLRQ/#WR#HDFK#WHVW#SRLQW/#RI#PXOWLSOH/#UHSHDWHG#GLVFKDUJHV
+H1J1# DW#DSSUR[LPDWHO\# 4#V# LQWHUYDOV,#SHUPLWV# LPSURYHG#WHVW#VWDWLVWLFV# DQG#DOORZV#WKH# WHVW# WR# EH
FRPSOHWHG# TXLFNO\1# +RZHYHU/# IRU# (48,30(17 # DQG# 6<67(06 # VXFK# DV# 3$7,(17 # PRQLWRUV/# WKH

GLVFKDUJHV# FRXOG# EH# PLVLQWHUSUHWHG# DV# D# 3$7,(17 # VLJQDO# ZLWK# D# UDWH# HTXDO# WR# WKH# GLVFKDUJH
UHSHWLWLRQ# UDWH1# %HFDXVH# LW# LV# KLJKO\# XQOLNHO\# WKDW# WKH# (48,30(17 # RU# 6<67(0# ZRXOG# EH# H[SRVHG
WR# (/(&75267$7,&# ',6&+$5*(6# UHSHDWHG# DW# VXFK# D# UDWH# LQ# DFWXDO# XVH/# DQG# WR# DYRLG# SHQDOL]LQJ
VXFK# (48,30(17 # DQG# 6<67(06 # XQQHFHVVDULO\/# WKH# WHVW# UHVXOWV# DUH# HYDOXDWHG# EDVHG# RQ
FRQVLGHULQJ#WKH#UHVSRQVH#RI#WKH# (48,30(17 #RU# 6<67(0#WR#HDFK#GLVFKDUJH#LQGLYLGXDOO\1


6XEFODXVH#69153515#E,#5,#DQG#6,

$ &&(66,%/(# 3$57 # LV# D# GHILQHG# WHUP# LQ# ,(&# 9393404# WKDW# LV# XVHG# LQ# WKLV# VXEFODXVH# WR# VSHFLI\
WKDW#GLVFKDUJHV#DUH#DSSOLHG#RQO\#WR#SRLQWV#RQ#WKH#HTXLSPHQW#HQFORVXUH#WKDW#FDQ#EH#WRXFKHG#E\
WKH#,(&#WHVW#ILQJHU#VSHFLILHG#LQ#,(&#9393404#DQG#WR#SRLQWV#LQWHUQDO#WR#WKH#HQFORVXUH#WKDW#FDQ#EH
DFFHVVHG# ZLWKRXW# WKH# XVH# RI# DQ# H[WUD0FRUSRUHDO# GHYLFH# + 722/ ,1# 1RQ0DFFHVVLEOH# SRUWLRQV# RI


$&&(66,%/(# 3$576 # LQFOXGH# IHPDOH# FRQQHFWRU# FRQWDFWV# DQG# DQ\# RWKHU# UHFHVVHG# FRQQHFWRU
FRQWDFW# WKDW# FDQQRW# EH# WRXFKHG# E\# WKH# ,(&# WHVW# ILQJHU1# 0DQ\# FRQQHFWRU# SRUWV# DUH# GHVLJQHG# WR
KDQGOH# KLJK0IUHTXHQF\# LQIRUPDWLRQ/# HLWKHU# DQDORJXH# RU# GLJLWDO/# DQG# WKHUHIRUH# FDQQRW# EH
SURYLGHG# ZLWK# VXIILFLHQW# RYHUYROWDJH# SURWHFWLRQ# GHYLFHV1 5;# 7R# HQVXUH# SURSHU# RSHUDWLRQ# RI# WKH
(48,30(17 # RU# 6<67(0 /# ODEHOOLQJ# LV# UHTXLUHG/# RQ# WKH# (48,30(17 # RU# 6<67(0 # DQG# LQ# WKH


$&&203$1<,1*#'2&80(176 /#IRU#FRQQHFWRUV#WKDW#DUH#QRW#WHVWHG#IRU# ,0081,7< #WR#(6'1

6XEFODXVH#69153515#E,#7,

$Q\# HOHFWULFDO# FKDUJH# WKDW# KDV# DFFXPXODWHG# RQ# ,17(51$//<# 32:(5(' # RU# & /$66 # ,,# (48,30(17
PXVW#EH# GLVVLSDWHG# EHWZHHQ# HDFK#GLVFKDUJH# RI# WKH# (6'# WHVW# JHQHUDWRU# VR# WKDW# WKH# WUXH# HIIHFW
RI# HDFK# GLVFKDUJH# FDQ# EH# GHWHUPLQHG1# &DUH# PXVW# EH# WDNHQ# LQ# WKH# GLVFKDUJH# PHWKRG# XVHG/# WR
DYRLG# RYHU0WHVWLQJ# WKH# (48,30(17 # RU# 6<67(01# +HQFH/# EHWZHHQ# GLVFKDUJHV# RI# WKH# (6'


JHQHUDWRU/#LW#LV#UHFRPPHQGHG#WR# GLVVLSDWH#DQ\# DFFXPXODWHG#FKDUJH#RQ#WKLV#NLQG#RI# (48,30(17


RU# 6<67(0 # WKURXJK# WKH# VSHFLILHG# UHVLVWRU# QHWZRUN1# +RZHYHU/# WKH# UHVLVWRU# QHWZRUN# VKRXOG# EH
GLVFRQQHFWHG# DQG# PRYHG# DZD\# GXULQJ# GLVFKDUJH# RI# WKH# (6'# WHVW# JHQHUDWRU/# VR# WKDW# WKH# WHVW
GLVFKDUJH#DQG#WKH#UHVXOWLQJ#WUDQVLHQW#HOHFWULF#DQG#PDJQHWLF#ILHOGV#DUH#QRW#DIIHFWHG1


6XEFODXVH#69153516#D,

6HH#$QQH[#$$$/#6XEFODXVH#69153515#D,#IRU#IXUWKHU#LQIRUPDWLRQ#UHJDUGLQJ#³GXULQJ#DQG#DIWHU´1


BBBBBBBBBBB
5;# 7KLV#WH[W#LV#IURP#$PHQGPHQW#5#+5333,#RI#,(&#943330705=#4<<81

±#95#± 9393404052)',6##,(&+(,


6XEFODXVH#69153516#D,#4,#DQG#5,

,W# LV# H[SHFWHG# WKDW# VRPH# 3$7,(17 0 &283/('# (48,30(17# DQG# 6<67(06 # ZLOO# XVH# DV# D# MXVWLILFDWLRQ
IRU# D# ORZHU# ,0081,7< # &203/,$1&(# /(9(/ # WKH# IDFW# WKDW# VRPH# SK\VLRORJLFDO# VLJQDOV# FDQ# EH
VXEVWDQWLDOO\#EHORZ#WKRVH#LQGXFHG#E\#D#ILHOG#VWUHQJWK#RI#6#92P1

7KH# LQFUHDVHG# UDGLDWHG# 5)# ,0081,7<# 7(67# /(9(/ # IRU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06


LV# LQWHQGHG# DV# DQ# DGGLWLRQDO# VDIHW\# PDUJLQ# WR# GHFUHDVH# WKH# OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH
FRPPXQLFDWLRQV# HTXLSPHQW/# VXFK# DV# D# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQH/# FRXOG# FDXVH
'(*5$'$7,21 # RI# DQ# (48,30(17 # RU# 6<67(0 # WKDW# UHVXOWV# LQ# KDUP# WR# D# 3$7,(17 # LI# WKH# PRELOH2
SRUWDEOH#FRPPXQLFDWLRQV# HTXLSPHQW# ZHUH#WR# EH# EURXJKW# LQWR# 3$7,(17 # DUHDV1# 7KLV# UHTXLUHPHQW
LV#QRW#LQWHQGHG#WR#SHUPLW#WKH#XVH#RI#VXFK#PRELOH2SRUWDEOH#FRPPXQLFDWLRQV#HTXLSPHQW#FORVHU#WR
(48,30(17 # DQG# 6<67(06 1# 7KH# VDIHW\# PDUJLQ# IRU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06


SURYLGHG# E\# WKH# VSHFLILHG# 43#92P# ,0081,7<# 7(67# /(9(/ # LQ# WKH# IUHTXHQF\# EDQG# ;3#0+]# WR
5/8#*+]#LV#SDUWLFXODUO\#LPSRUWDQW#EHFDXVH#WKLV#EDQG#LV#XVHG#E\#KDQG0KHOG#DQG#PRELOH#WZR0ZD\
UDGLRV/# GLJLWDO# SRUWDEOH# WHOHSKRQHV# DQG# GLJLWDO# PRELOH# WHOHSKRQHV1# ( 48,30(17 # DQG# 6<67(06 /
SDUWLFXODUO\# WKRVH# ZKLFK# KDYH# QRW# EHHQ# WHVWHG# LQ# DFFRUGDQFH# ZLWK# WKLV# VWDQGDUG/# KDYH# EHHQ
IRXQG# WR# EH# PRUH# VXVFHSWLEOH# WR# WUDQVPLVVLRQV# IURP# GLJLWDO# SRUWDEOH# DQG# PRELOH# WHOHSKRQHV
WKDQ#IURP#ROGHU/#DQDORJXH#SRUWDEOH#DQG#PRELOH#WHOHSKRQHV#RI#WKH#VDPH# 5$7(' #PD[LPXP#RXWSXW


SRZHU/# DQG# HYHQ# PRUH# VXVFHSWLEOH# WR# WUDQVPLVVLRQV# IURP# KDQG0KHOG# DQG# PRELOH# WZR0ZD\
UDGLRV# +ZDONLH0WDONLHV,/# ZKLFK# RIWHQ# WUDQVPLW# ZLWK# D# KLJKHU# RXWSXW# SRZHU# WKDQ# GR# SRUWDEOH# DQG
PRELOH#WHOHSKRQHV1

7KH#IUHTXHQF\#RI#5/8#*+]#ZDV#VHOHFWHG#DV#WKH#XSSHU#HQG#RI#WKH#WHVW#IUHTXHQF\#UDQJH#WR#FRYHU
WKH#5/733#*+]#WR#5/833#*+]#,60#EDQG1#8QWLO#WKH#IUHTXHQF\#UDQJH#5/8#*+]#WR#6/3#*+]#LV#PRUH

KHDYLO\#XVHG/#WHVWLQJ#LQ#WKLV#UDQJH#ZLOO#SURYLGH#OLWWOH#DGGLWLRQDO#EHQHILW1

6XEFODXVH#69153516#D,#6,

)RU# (48,30(17 # DQG# 6<67(06 # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ/# LW# LV# DSSURSULDWH# WR
UHGXFH# WKH# 5)# ,0081,7<# 7(67# /(9(/ # E\# WKH# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU


DWWHQXDWLRQ# VSHFLILHG# IRU# WKH# VKLHOGHG# ORFDWLRQ# E\# WKH# PDQXIDFWXUHU# RI# WKH# (48,30(17 # RU
6<67(0 1#+RZHYHU/#LI#LW#LV#QHFHVVDU\#WR#VSHFLI\#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ#DV#D#UHVXOW#RI#WKH
(0,66,216 # FKDUDFWHULVWLFV# RI# WKH# (48,30(17 # RU# 6<67(0 /# D# PDQXIDFWXUHU# FRXOG# FKRRVH# QRW# WR
WDNH#DGYDQWDJH#RI#WKLV# ,0081,7< #WHVWLQJ#DOORZDQFH1

6HH#$QQH[#$$$/#6XEFODXVH#91;161534#F,#5,1


)RU# (48,30(17 #DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#ORFDWLRQ#WKDW#LV#ZHOO0VKLHOGHG#DQG#ZHOO0


ILOWHUHG/#WKH# ,0081,7<#7(67#/(9(/ #PD\#EH#UHGXFHG#EHORZ#D#OHYHO#SURGXFHG#E\#&,6350FRPSOLDQW
(0,66,216 ># WKHUHIRUH/# LW# LV# QHFHVVDU\# WR# SURYLGH# WKH# XVHU# ZLWK# UHFRPPHQGDWLRQV# DV# WR# ZKDW
UHVWULFWLRQV#VKRXOG#EH#SODFHG#XSRQ#RWKHU#GHYLFHV#XVHG#LQ#WKLV#VKLHOGHG#ORFDWLRQ1#6HH#91;161534


F,#6,1

7KH#IUHTXHQF\#RI#5/8#*+]#ZDV#VHOHFWHG#DV#WKH#XSSHU#HQG#RI#WKH#WHVW#IUHTXHQF\#UDQJH#WR#FRYHU
WKH#5/733#*+]#WR#5/833#*+]#,60#EDQG1#8QWLO#WKH#IUHTXHQF\#UDQJH#5/8#*+]#WR#6/3#*+]#LV#PRUH
KHDYLO\#XVHG/#WHVWLQJ#LQ#WKLV#UDQJH#ZLOO#SURYLGH#OLWWOH#DGGLWLRQDO#EHQHILW1

6XEFODXVH#69153516#D,#7,


,Q#PHGLFDO#SUDFWLFH/#HTXLSPHQW#LV#XVHG#WKDW#LV#WXQHG#WR#D#VSHFLILF#IUHTXHQF\#LQ# RUGHU#WR# GHWHFW


5)# HOHFWURPDJQHWLF#VLJQDOV# HPDQDWLQJ#IURP#D# 3$7,(17 #+H1J1# 05,# (48,30(17 ,/# RU#WUDQVPLW# GDWD
IRU# UHPRWH# PRQLWRULQJ# RI# 3$7,(176 # +H1J1# WHOHPHWU\,1# :KHQ# DQ# LQWHQWLRQDO# UHFHLYHU# RI# 5)
HOHFWURPDJQHWLF#HQHUJ\# LV# WXQHG# WR# LWV#IUHTXHQF\# RI#UHFHSWLRQ/#LW# LV# LPSRVVLEOH# IRU# WKDW# VHFWLRQ
RI# WKH# (48,30(17 # RU# 6<67(0# WR# EH# LPPXQH# WR# D# WHVW# VLJQDO# LQ# LWV# SDVVEDQG1# 7KHUHIRUH/


'(*5$'$7,21 # RI#WKH#UHFHLYLQJ#VHFWLRQ# LV# SHUPLWWHG1# +RZHYHU/# WKH# RWKHU# RSHUDWLRQDO# )81&7,216


RI#WKH# (48,30(17 #RU# 6<67(0#PXVW#FRQWLQXH#WR#RSHUDWH#DV#LQWHQGHG1

7KH#IUHTXHQF\#RI#5/8#*+]#ZDV#VHOHFWHG#DV#WKH#XSSHU#HQG#RI#WKH#WHVW#IUHTXHQF\#UDQJH#WR#FRYHU
WKH#5/733#*+]#WR#5/833#*+]#,60#EDQG1#8QWLO#WKH#IUHTXHQF\#UDQJH#5/8#*+]#WR#6/3#*+]#LV#PRUH


KHDYLO\#XVHG/#WHVWLQJ#LQ#WKLV#UDQJH#ZLOO#SURYLGH#OLWWOH#DGGLWLRQDO#EHQHILW1

9393404052)',6##,(&+(, ±#96#±


6XEFODXVH#69153516#E,#6,

7KH# 5#+]# PRGXODWLRQ# IUHTXHQF\# LV# D# FRPSURPLVH# WKDW# KDV# EHHQ# VHOHFWHG# WR# EH# ZLWKLQ
SK\VLRORJLFDO# SDVVEDQGV# DQG# \HW# DYRLG# WKH# DGGLWLRQDO# WHVWLQJ# WLPH# WKDW# ZRXOG# UHVXOW# LI# HYHU\
SDVVEDQG# ZHUH# WHVWHG1# ,W# LV# EHWZHHQ# WKH# W\SLFDO# SK\VLRORJLFDO# SDVVEDQGV# RI# UHVSLUDWRU\# DQG
FDUGLRORJ\# (48,30(17 #DQG# 6<67(06 /# DQG# LW# FRUUHVSRQGV# WR# D# VHFRQGDU\# PRGXODWLRQ# IUHTXHQF\
RI# VRPH# W\SHV# RI# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV1# 7KH# XVH# RI# 4#N+]# IRU# (48,30(17 # DQG


6<67(06 #WKDW#GR#QRW#PHDVXUH#RU#FRQWURO#SK\VLRORJLFDO#SDUDPHWHUV#DOLJQV#ZLWK#WKH#UHTXLUHPHQWV
RI# ,(&#9433307061# 7KH# 3+<6,2/2*,&$/# 6,08/$7,21# )5(48(1&< # DQG# WKH# 23(5$7,1*# )5(48(1&<
DUH# UHTXLUHG# WR# EH# VHSDUDWHG# IURP# WKH# PRGXODWLRQ# IUHTXHQF\# WR# PDNH# WKH# LGHQWLILFDWLRQ# RI
LQWHUIHUHQFH# PRUH# REYLRXV1# *URXSV# ZULWLQJ# 3DUWLFXODU# 6WDQGDUGV# +,(&# 93934050;# DQG# ,62
VWDQGDUGV# EDVHG# RQ# ,(&# 9393404,# DUH# HQFRXUDJHG# WR# XVH# WKH# PRGXODWLRQ# IUHTXHQF\/
3+<6,2/2*,&$/# 6,08/$7,21# )5(48(1&< # DQG# 23(5$7,1*# )5(48(1&< # UHTXLUHPHQWV# VSHFLILHG# LQ


WKLV# VWDQGDUG# XQOHVV# WKH\# DUH# IRXQG# WR# EH# LQDGHTXDWH# IRU# WKH# VSHFLILF# SURGXFW1# )RU# PXOWL0
SDUDPHWHU# 6<67(06 /#WKLV#ZLOO#PLQLPL]H#WKH#WHVWLQJ#EXUGHQ#WKDW#ZRXOG#RWKHUZLVH#EH#LPSRVHG#E\
WKH#UHTXLUHPHQW#WR#WHVW#RYHU#WKH#HQWLUH#IUHTXHQF\#UDQJH#DW#HDFK#GLIIHUHQW#PRGXODWLRQ#IUHTXHQF\
VSHFLILHG#E\#WKH#LQGLYLGXDO#³3DUW#WZR´#VWDQGDUG#IRU#HDFK#VXE0 6<67(01

6XEFODXVH#69153516#E,#7,#DQG#8,


7KH# PLQLPXP# GZHOO# WLPH# UHTXLUHPHQW# RI# 6# V# IRU# (48,30(17 # DQG# 6<67(06 # IRU# ZKLFK# 5# +]
PRGXODWLRQ# LV# XVHG# LV# FDOFXODWHG# IURP# WKH# PD[LPXP# IUHTXHQF\# VZHHS# VSHHG# +4/8#×#43 ±6
GHFDGHV2V,# DQG#PD[LPXP#IUHTXHQF\#VWHS# VL]H# +4#(,# UHTXLUHPHQWV# RI# ,(&# 943330706/# ZLWK# WKH
UHVXOW# URXQGHG# WR# WKH# QHDUHVW# ZKROH# VHFRQG1# ,W# DVVXUHV# WKDW# WKH# (48,30(17 # RU# 6<67(0# XQGHU
WHVW# ZLOO# EH# H[SRVHG# WR# DW# OHDVW# VL[# F\FOHV# RI# WKH# PRGXODWLRQ1# 7KH# PLQLPXP# GZHOO# WLPH

UHTXLUHPHQW# RI# 4# V# IRU# DOO# RWKHU# (48,30(17 # DQG# 6<67(06 # LV# UHTXLUHG# VR# WKDW# SHUIRUPDQFH
'(*5$'$7,21 #WKDW#PLJKW#RFFXU#LQ#UHVSRQVH#WR#WKH# ,0081,7<#7(67#/(9(/ #FDQ#EH#REVHUYHG#E\#WHVW
HQJLQHHUV1

7KH# XVH# RI# DGHTXDWH# GZHOO# WLPH# +RU# D# FRUUHVSRQGLQJO\# VORZ# VZHHS# UDWH,# FDQ# EH# SDUWLFXODUO\
LPSRUWDQW# WR# ,0081,7< # WHVWLQJ# RI# (48,30(17 # DQG# 6<67(06 1# :KLOH# LQWHUIHUHQFH# ZLWK# D# YLGHR


GLVSOD\# XQLW# FDQ# EH# SHUFHLYHG# LQVWDQWO\/# (48,30(17 # DQG# 6<67(06 # FDQ# KDYH# D# YHU\# VORZ
UHVSRQVH# WLPH# DQG# PD\# UHTXLUH# D# ORQJ# GZHOO# WLPH# LQ# RUGHU# WR# DVVHVV# SHUIRUPDQFH# GXULQJ# WKH
WHVW1#)RU#H[DPSOH=

±# $#SXOVH#R[LPHWHU#PD\#GLVSOD\#D#YDOXH#DYHUDJHG#RYHU#VHYHUDO#FDUGLDF#F\FOHV1


±# ,W# PD\# WDNH# VHYHUDO# PLQXWHV# WR# GHWHUPLQH# WKDW# WKH# IORZ# UDWH# RI# DQ# LQIXVLRQ# SXPS# KDV
UHPDLQHG#ZLWKLQ#DQ#DFFHSWDEOH#UDQJH1
±# $#YHQWLODWRU#PD\#UHTXLUH#VHYHUDO#EUHDWK#F\FOHV#WR#UHVSRQG#WR#D#WHVW#VLJQDO1
127( 6RPH# VORZ# VHQVRUV/# H1J1# FKHPLFDO2ELRFKHPLFDO# VHQVRUV/# PD\# KDYH# UHVSRQVH# WLPHV# RI# VHYHUDO# PLQXWHV# EXW


DUH# QRW# VXVFHSWLEOH# WR# 5)# ILHOGV1# ,Q# VXFK# LQVWDQFHV# WKH# UHVSRQVH# RI# WKH# HOHFWURQLFV/# LQFOXGLQJ# ILOWHULQJ# RU# DYHUDJLQJ
LQ#KDUGZDUH#RU#VRIWZDUH/#ZRXOG#EH#WKH#DSSURSULDWH#UHVSRQVH#WLPH#WR#FRQVLGHU#LQ#WKH#GHWHUPLQDWLRQ#RI#WKH#GZHOO#WLPH1

6XEFODXVH#69153516#E,#;,

,QFOXVLRQ# RI# WKH# 3$7,(17 # PD\# VLJQLILFDQWO\# DIIHFW# WKH# (/(&7520$*1(7,&# (19,5210(17 # RI# WKH
(48,30(17 # RU# 6<67(0 # XQGHU# WHVW# +WKH# 3$7,(17 # PD\# IXQFWLRQ# DV# DQ# DQWHQQD,1# )RU# WKLV# UHDVRQ/
WKH# GHYHORSPHQW# RI# DGHTXDWH# 3$7,(17 # PRGHOV# DQG# WHVW# PHWKRGRORJ\# ZLOO# UHTXLUH# H[WHQVLYH
UHVHDUFK# IRU# HDFK# W\SH# RI# 3$7,(17 # FRXSOLQJ1# 7KH# UHTXLUHPHQW# WKDW# WKH# 3$7,(17 # FRXSOLQJ# SRLQW


GRHV#QRW#KDYH#DQ#LQWHQWLRQDO#FRQGXFWLYH#RU#FDSDFLWLYH#FRQQHFWLRQ#WR#JURXQG#GXULQJ#WHVWLQJ#LV#WR
HQVXUH# WKDW# WKH# 3$7,(17 # FDEOH# LV# WHVWHG# LQ# D# ZRUVW0FDVH# FRQGLWLRQ1# ,(&#9393404# WUHDWV# WKH
FRQGLWLRQV# LQ# ZKLFK# WKH# 3$7,(17 # LV# IORDWLQJ# DQG# LQ# ZKLFK# WKH# 3$7,(17 # LV# JURXQGHG# DV# 1250$/
&21',7,216 1#8QLQWHQWLRQDO#FDSDFLWDQFH#EHWZHHQ#WKH# 3$7,(17 #FRXSOLQJ#SRLQW#DQG#JURXQG#VKRXOG
EH# OLPLWHG# WR# D# PD[LPXP# RI# 583#S)1# 7KLV# LV# FRQVLGHUHG# WR# EH# D# ZRUVW# FDVH/# LJQRULQJ# WKH# IDFW


WKDW# WKH# KXPDQ# ERG\# FDQ# DFW# DV# DQ# DQWHQQD# WKDW# FDQ# VLJQLILFDQWO\# LQFUHDVH# RU# GHFUHDVH# WKH
DPRXQW# RI# 5)# HOHFWURPDJQHWLF# HQHUJ\# FRXSOHG# LQWR# WKH# (48,30(17 # RU# 6<67(0# DW# D# SDUWLFXODU
IUHTXHQF\/# GHSHQGLQJ# XSRQ# WKH# SK\VLFDO# FRQILJXUDWLRQ1# 6&#95$# GRHV# QRW# SODQ# WR# GHYHORS# DQ
5)# 3$7,(17 #PRGHO1


±#97#± 9393404052)',6##,(&+(,


6XEFODXVH#69153516#E,#<,

,I# RSHUDWLRQ# RI# VXE0 6<67(06 # FDQQRW# EH# VLPXODWHG/# LW# LV# QRW# SUDFWLFDO# WR# WHVW# /$5*( /
3(50$1(17/< 0 ,167$//(' # (48,30(17 # DQG# 6<67(06 # IRU# ,0081,7< # WR# UDGLDWHG# 5)# ILHOGV# LQ
DFFRUGDQFH# ZLWK# ,(&# 943330706# RQ# D# WHVW# VLWH1# 7KHUHIRUH/# WKH\# VKRXOG# EH# WHVWHG# XVLQJ
FRPPXQLFDWLRQV#HTXLSPHQW#+OHJDO#XVH#RI#WUDQVPLWWHUV,#DV#5)#WHVW#VRXUFHV1


6XEFODXVH#69153517#D,

$15#RI#,(&#943330707#UHFRPPHQGV#OHYHO#6#+±5#N9#IRU# SRZHU#VXSSO\# DQG# SURWHFWLYH# HDUWK#SRUWV


DQG#±4#N9#IRU#VLJQDO/#GDWD#DQG#FRQWURO#SRUWV,#IRU#HQYLURQPHQWV#ZKHUH#³WKHUH#LV#SRRU#VHSDUDWLRQ
EHWZHHQ#SRZHU#VXSSO\/#FRQWURO/#VLJQDO#DQG#FRPPXQLFDWLRQ#FDEOHV´1#7KLV#FDQ#VRPHWLPHV#EH#WKH
FDVH#LQ#KRVSLWDOV1#,Q#DGGLWLRQ/#OHYHO#6#SURYLGHV#D#JUHDWHU#VDIHW\#PDUJLQ#WKDQ#ZRXOG#EH#SURYLGHG


H1J1#E\#OHYHO#51

3 $7,(17 #FDEOHV#DUH#JHQHUDOO\#QRW#ORQJ#HQRXJK#WR#UXQ#LQ#SDUDOOHO#WR#PDLQV#FDEOHV#IRU#D#VXIILFLHQW
GLVWDQFH#WR#FRXSOH# D# ',6785%$1&(# WKDW# ZRXOG#MXVWLI\# WKH# DSSOLFDWLRQ# RI# WKH# FDSDFLWLYH# FRXSOLQJ
FODPS# WHVW1# )XUWKHUPRUH/# HYHQ# LQ# YHU\# ORQJ# 3$7,(17 # FDEOHV/# LW# LV# XQGHVLUDEOH# WR# DUUDQJH# WKH
FDEOH#QHDU#PDLQV#FDEOHV#IRU#HOHFWULFDO#VDIHW\#DQG#QRLVH#UHGXFWLRQ#UHDVRQV1#7KH#UHTXLUHPHQW#WR


KDYH# 3$7,(17 # FDEOHV# DWWDFKHG# ZLOO# \LHOG# D# UHDOLVWLF# UHVXOW# RI# WKH# HIIHFW# RQ# 3$7,(17 # FDEOHV/# LQ
1250$/#86( /#RI#WKH#HOHFWURPDJQHWLF#SKHQRPHQRQ#UHSUHVHQWHG#E\#WKH# ,0081,7<#7(67#/(9(/ 1

:KLOH# VLJQDO# DQG# LQWHUFRQQHFWLQJ# FDEOHV# VSHFLILHG# WR# EH# +L1H1# UHVWULFWHG# WR,# OHVV# WKDQ# 6#P# LQ
OHQJWK# DQG# DOO# 3$7,(17 0FRXSOHG# FDEOHV# DUH# QRW# WHVWHG# GLUHFWO\/# D# IDLOXUH# RI# WKH# (48,30(17 # RU
6<67(0 #WR#PHHW#WKH#UHTXLUHPHQWV#RI#69153514#M,/#HYHQ#LI#LW#RFFXUV#GXH# WR#FRXSOLQJ#IURP#FDEOHV

WKDW# DUH# WHVWHG# GLUHFWO\# WR# FDEOHV# WKDW# DUH# QRW# WHVWHG# GLUHFWO\/# VWLOO# FRQVWLWXWHV# IDLOXUH# RI# WKH
(48,30(17 #RU# 6<67(0 #WR#PHHW#WKH# ,0081,7< #UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#IRU#WKLV#WHVW1

6HH#$QQH[#$$$/#6XEFODXVH#69153515#D,#IRU#IXUWKHU#LQIRUPDWLRQ#UHJDUGLQJ#³GXULQJ#DQG#DIWHU´1

6XEFODXVH#69153517#E,#6,


7KH#DUWLILFLDO# KDQG#DQG# 5&#HOHPHQW#UHSOLFDWH# WKH#FRXSOLQJ# SDWK# WR# JURXQG# WKURXJK#WKH# 3$7,(17


DQG# DUH# UHTXLUHG# WR# FRPSOHWH# WKLV# FRXSOLQJ# SDWK# GXULQJ# WHVWLQJ1# 7KH# DUWLILFLDO# KDQG# VLPXODWHV
WKH#FDSDFLWLYH#FRXSOLQJ#HIIHFW#RI#WKH# 3$7,(17 #DQG#WKH#5&#HOHPHQW#VLPXODWHV#WKH#5)#LPSHGDQFH
RI# WKH# 3$7,(17 # ZLWK# UHVSHFW# WR# JURXQG1# 2I# WKH# WHVWV# VSHFLILHG# E\# WKLV# VWDQGDUG/# XVH# RI# WKH
DUWLILFLDO#KDQG#DQG#5&#HOHPHQW#DUH#RQO\#DSSURSULDWH#IRU#WKLV#WHVW#DQG#IRU#WKH#,(&#943330709#WHVW


EHFDXVH# WKH# DUWLILFLDO# KDQG/# 5&# HOHPHQW# DQG# LQWHUFRQQHFWLQJ# ZLUH# +VHH# &,635#4904,# DUH# QRW
ZHOO0FKDUDFWHUL]HG#IRU#XVH#ZLWK#KLJKHU0IUHTXHQF\# ,0081,7< #WHVWV1

6XEFODXVH#69153517#E,#7,


7KH# DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# UHSOLFDWH# WKH# FRXSOLQJ# SDWK# WR# JURXQG# WKURXJK# WKH
23(5$725 # DQG# DUH# UHTXLUHG# WR# FRPSOHWH# WKLV# FRXSOLQJ# SDWK# GXULQJ# WHVWLQJ1# 7KH# DUWLILFLDO# KDQG
VLPXODWHV# WKH# FDSDFLWLYH# FRXSOLQJ# HIIHFW# RI# WKH# 23(5$725 # DQG# WKH# 5&# HOHPHQW# VLPXODWHV# WKH
5)# LPSHGDQFH# RI# WKH# 23(5$725 # ZLWK# UHVSHFW# WR# JURXQG1# 2I# WKH# WHVWV# VSHFLILHG# E\# WKLV
VWDQGDUG/# XVH# RI# WKH# DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# DUH# RQO\# DSSURSULDWH# IRU# WKLV# WHVW# DQG# IRU
WKH# ,(&# 943330709# WHVW# EHFDXVH# WKH# DUWLILFLDO# KDQG/# 5&# HOHPHQW# DQG# LQWHUFRQQHFWLQJ# ZLUH# DUH
QRW#ZHOO0FKDUDFWHUL]HG#IRU#XVH#ZLWK#KLJKHU0IUHTXHQF\# ,0081,7< #WHVWV1


)RLO#DQG#5&#HOHPHQWV#VHSDUDWH#IURP#WKRVH#XVHG#WR#VLPXODWH#WKH# 3$7,(17 + 6 ,#VKRXOG#EH#XVHG#IRU


23(5$725# VLPXODWLRQ/#XQOHVV#WKH# 23(5$725 #RI#D#SDUWLFXODU# (48,30(17 #RU# 6<67(0 #LV#DOZD\V#WKH
3$7,(17 1

6XEFODXVH#69153518#D,


:KLOH# RQO\# SRZHU# OLQHV# DQG# D1F1# LQSXWV# WR# D1F10WR0G1F1# FRQYHUWHUV# DQG# EDWWHU\# FKDUJHUV# DUH
WHVWHG#GLUHFWO\/# D#IDLOXUH# RI#WKH# (48,30(17 # RU# 6<67(0#WR# PHHW# WKH# UHTXLUHPHQWV# RI# 69153514# M,/
HYHQ# LI# LW# RFFXUV# GXH# WR# FRXSOLQJ# IURP# SRZHU# OLQHV# DQG# D1F1# LQSXWV# WKDW# DUH# WHVWHG# GLUHFWO\# WR
FDEOHV#WKDW#DUH#QRW#WHVWHG#GLUHFWO\/#VWLOO#FRQVWLWXWHV#IDLOXUH#RI#WKH# (48,30(17 #RU# 6<67(0#WR#PHHW
WKH# ,0081,7< #UHTXLUHPHQWV#RI#WKLV#VWDQGDUG#IRU#WKLV#WHVW1


6HH#$QQH[#$$$/#6XEFODXVH#69153515#D,#IRU#IXUWKHU#LQIRUPDWLRQ#UHJDUGLQJ#³GXULQJ#DQG#DIWHU´1

9393404052)',6##,(&+(, ±#98#±


6XEFODXVH#69153518#E,

7KH#FRPELQDWLRQ#ZDYH#WHVW#LV#SHUIRUPHG#ZLWK#D#5#Ω#JHQHUDWRU#VRXUFH#LPSHGDQFH#IRU#WKH#OLQH+V,
WR#OLQH+V,#WHVW#DQG#D#45#Ω#JHQHUDWRU#VRXUFH#LPSHGDQFH#IRU#WKH#OLQH+V,#WR#JURXQG#WHVW1

6XEFODXVH#69153518#E,#6,


7KH#VXUJH#WHVW#LV#PDLQO\#D#WHVW#IRU#WKH#DELOLW\#RI#WKH#SRZHU#VXSSO\#WR#ZLWKVWDQG#WKLV#KLJK0HQHUJ\
SXOVH1#,I#QR#VXUJH#SURWHFWLRQ#GHYLFH#LV#LQVWDOOHG#LQ#WKH# (48,30(17 #RU# 6<67(0/#D#WHVW#DW#RQO\#WKH
KLJKHVW# ,0081,7<# 7(67# /(9(/ #VSHFLILHG# LQ# 69153518/#±5#N9#IRU# D1F1#SRZHU#OLQH+V,# WR# JURXQG# DQG
±4#N9# IRU# D1F1# SRZHU# OLQH+V,# WR# OLQH+V,/# ZLOO# EH# WKH# ZRUVW# FDVH1# ,Q# WKDW# FDVH/# WHVWLQJ# DW# ORZHU
,0081,7<# 7(67# /(9(/6 # LV# QRW# XVHIXO# DQG# ZRXOG# SURYLGH# QR# DGGLWLRQDO# LQIRUPDWLRQ1# ,I# D# VXUJH
SURWHFWLRQ# GHYLFH# LV# LQVWDOOHG# LQ# WKH# (48,30(17 # RU# 6<67(0/# WHVWLQJ# DW# ORZHU# ,0081,7<# 7(67


/(9(/6 #LV#QHFHVVDU\#WR#YHULI\#SURSHU#RSHUDWLRQ#RI#WKH#VXUJH#SURWHFWLRQ#GHYLFH1

6XEFODXVH#69153518#E,#7,

& /$66 # ,,# (48,30(17 # DQG# 6<67(06 # GR# QRW# KDYH# D# 3527(&7,9(# ($57+# &21'8&725 ># WKHUHIRUH/
DSSOLFDWLRQ# RI# WKH# OLQH+V,# WR# JURXQG# VXUJH# LV# QRW# SRVVLEOH# ZLWK# WKH# VWDQGDUG# FRXSOLQJ# QHWZRUN1


& /$66 # ,,# (48,30(17 # DQG# 6<67(06 # DUH# UHTXLUHG# WR# KDYH# D# GLHOHFWULF# VWUHQJWK# UDWLQJ# RI# 6#N9
EHWZHHQ# WKH# PDLQV# SRZHU# LQSXW# DQG# WKH# (1&/2685( # IRU# LQSXW# 0$,16# 92/7$*(6 # JUHDWHU# WKDQ
83#9# DQG# OHVV# WKDQ# RU# HTXDO# WR# 483#9# DQG# D# GLHOHFWULF# VWUHQJWK# UDWLQJ# RI# 7#N9# EHWZHHQ# PDLQV
DQG# WKH# (1&/2685( # IRU# LQSXW# 0$,16# 92/7$*(6 # JUHDWHU# WKDQ# 483#9# DQG# OHVV# WKDQ# RU# HTXDO# WR
583#91#,Q#ERWK#FDVHV/#WKH#UHTXLUHG# GLHOHFWULF#VWUHQJWK# LV#JUHDWHU# WKDQ# WKH#VXUJH# ,0081,7<# 7(67
/(9(/ /# VR# DSSO\LQJ# VXUJHV# EHWZHHQ# OLQH+V,# DQG# WKH# (1&/2685( # ZRXOG# SURYLGH# QR# DGGLWLRQDO

LQIRUPDWLRQ1

6XEFODXVH#69153519#D,

6HH#$QQH[#$$$/#6XEFODXVH#69153515#D,#IRU#IXUWKHU#LQIRUPDWLRQ#UHJDUGLQJ#³GXULQJ#DQG#DIWHU1´

6XEFODXVH#69153519#D,#4,


,W# LV# H[SHFWHG# WKDW# VRPH# 3$7,(17 0 &283/('# (48,30(17# DQG# 6<67(06 # ZLOO# XVH# DV# D# MXVWLILFDWLRQ
IRU# D# ORZHU# ,0081,7< # &203/,$1&(# /(9(/ # WKH# IDFW# WKDW# VRPH# SK\VLRORJLFDO# VLJQDOV# FDQ# EH
VXEVWDQWLDOO\#EHORZ#WKRVH#LQGXFHG#E\#WKH#6#9UPV# ,0081,7<#7(67#/(9(/ 1


6XEFODXVH#69153519#D,#5,

7KH# LQFUHDVHG# FRQGXFWHG# 5)# ,0081,7<# 7(67# /(9(/ # LQ# WKH# ,60# IUHTXHQF\# EDQGV# EHWZHHQ
483#N+]#DQG#;3#0+]#IRU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06 #LV#LQWHQGHG#DV#DQ#DGGLWLRQDO
VDIHW\# PDUJLQ# WR# GHFUHDVH# WKH# OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW/


VXFK#DV#D#WZR0ZD\#UDGLR#+ZDONLH0WDONLH,/#FRXOG#FDXVH# '(*5$'$7,21 #RI#DQ# (48,30(17 #RU# 6<67(0


WKDW#UHVXOWV#LQ#KDUP#WR#D# 3$7,(17 #LI#WKH#PRELOH2SRUWDEOH#FRPPXQLFDWLRQV#HTXLSPHQW#ZHUH#WR#EH
EURXJKW# LQWR# 3$7,(17 # DUHDV1# 7KLV# UHTXLUHPHQW# LV# QRW# LQWHQGHG# WR# SHUPLW# WKH# XVH# RI# VXFK
PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW# FORVHU# WR# (48,30(17 # RU# 6<67(06 1# 7KH# VDIHW\
PDUJLQ# IRU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 # SURYLGHG# E\# WKH# VSHFLILHG# 43#9UPV
,0081,7<#7(67#/(9(/ #LQ#WKH#,60#IUHTXHQF\#EDQGV#EHWZHHQ#483#N+]#DQG#;3#0+]#LV# SDUWLFXODUO\
LPSRUWDQW# EHFDXVH# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW# XVLQJ# WKHVH# EDQGV# RIWHQ# KDV
RXWSXW#SRZHU#JUHDWHU#WKDQ#4#:1


6XEFODXVH#69153519#D,#6,

)RU# (48,30(17 # DQG# 6<67(06 # VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ/# LW# LV# DSSURSULDWH# WR
UHGXFH# WKH# 5)# ,0081,7<# 7(67# /(9(/ # E\# WKH# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU
DWWHQXDWLRQ# VSHFLILHG# IRU# WKH# VKLHOGHG# ORFDWLRQ# E\# WKH# PDQXIDFWXUHU# RI# WKH# (48,30(17 # RU


6<67(0 1#+RZHYHU/#LI#LW#LV#QHFHVVDU\#WR#VSHFLI\#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ#DV#D#UHVXOW#RI#WKH
(0,66,216 # FKDUDFWHULVWLFV# RI# WKH# (48,30(17 # RU# 6<67(0 /# D# PDQXIDFWXUHU# FRXOG# FKRRVH# QRW# WR
WDNH#DGYDQWDJH#RI#WKLV# ,0081,7< #WHVWLQJ#DOORZDQFH1

6HH#$QQH[#$$$/#6XEFODXVH#91;161534#F,#5,1


±#99#± 9393404052)',6##,(&+(,


)RU# (48,30(17 #DQG# 6<67(06 #VSHFLILHG#IRU#XVH#RQO\#LQ#D#ORFDWLRQ#WKDW#LV#ZHOO0VKLHOGHG#DQG#ZHOO0
ILOWHUHG/# WKH# &203/,$1&(# /(9(/ # PD\# EH# UHGXFHG# EHORZ# D# OHYHO# SURGXFHG# E\# &,6350FRPSOLDQW
(0,66,216 ># WKHUHIRUH/# LW# LV# QHFHVVDU\# WR# SURYLGH# WKH# XVHU# ZLWK# UHFRPPHQGDWLRQV# DV# WR# ZKDW
UHVWULFWLRQV#VKRXOG#EH#SODFHG#XSRQ#RWKHU#GHYLFHV#XVHG#LQ#WKLV#VKLHOGHG#ORFDWLRQ1#6HH#91;161534
F,#6,1

6XEFODXVH#69153519#D,#7,


,Q#PHGLFDO#SUDFWLFH/#HTXLSPHQW#LV#XVHG#WKDW#LV#WXQHG#WR#D#VSHFLILF#IUHTXHQF\#LQ# RUGHU#WR# GHWHFW
5)# HOHFWURPDJQHWLF# VLJQDOV# HPDQDWLQJ# IURP# D# 3$7,(17 # +H1J1# 05,# (48,30(17 ,1# :KHQ# DQ
LQWHQWLRQDO# UHFHLYHU# RI# 5)# HOHFWURPDJQHWLF# HQHUJ\# LV# WXQHG# WR# LWV# IUHTXHQF\# RI# UHFHSWLRQ/# LW# LV
LPSRVVLEOH# IRU# WKDW# VHFWLRQ# RI# WKH# (48,30(17 # RU# 6<67(0# WR# EH# LPPXQH# WR# D# WHVW# VLJQDO# LQ# LWV
SDVVEDQG1# 7KHUHIRUH/# GLVWXUEDQFH# RI# WKH# UHFHLYLQJ# VHFWLRQ# LV# SHUPLWWHG1# +RZHYHU/# WKH# RWKHU


RSHUDWLRQDO# )81&7,216 #RI#WKH# (48,30(17 #RU# 6<67(0#PXVW#FRQWLQXH#WR#RSHUDWH#DV#LQWHQGHG1

6XEFODXVH#69153519#D,#8,

6XFK# (48,30(17 # DQG# 6<67(06 # DUH# H[HPSW# IURP# WKH# UHTXLUHPHQWV# RI# 69153519/# EHFDXVH# LW# LV
XQOLNHO\# WKDW# 5)# HQHUJ\# LQ# WKH# IUHTXHQF\# UDQJH# 483#N+]# WR# ;3#0+]# ZLOO# EH# FRXSOHG# LQWR# WKH
(48,30(17 # RU# 6<67(0 1# ([DPSOHV# LQFOXGH# VRPH# LQIUDUHG# WKHUPRPHWHUV/# LQIXVLRQ# SXPSV# DQG


GHILEULOODWRUV1

6XEFODXVH#69153519#E,#4,/#ILUVW#GDVK

7KH# LQWHUIDFH# FKDUDFWHULVWLF# LPSHGDQFH# DQG# DVVRFLDWHG# LQMHFWLRQ# SDUDPHWHUV# IRU# (48,30(17

DQG# 6<67(06 #YDU\#PRUH#ZLGHO\#WKDQ#IRU#,7(#GHYLFHV/#IRU#ZKLFK#,(&#943330709#ZDV#GHYHORSHG1
7KLV# PRGLILFDWLRQ# DOORZV# IRU# PRUH# DSSURSULDWH# PDWFKLQJ# RI# WKH# ,0081,7< # VWLPXOXV# WR# WKH
(48,30(17 #RU# 6<67(0 #XQGHU#WHVW1

6XEFODXVH#69153519#E,#4,/#VHFRQG#GDVK

)RU# (48,30(17 # DQG# 6<67(06 /# WKH# UHTXLUHPHQWV# RI# ,(&# 943330709/# 6XEFODXVH# 9151514# DUH# QRW


FRPSDWLEOH#ZLWK#WKH# /($.$*(#&855(17# UHTXLUHPHQWV#RI#,(&#9393404#DQG#,(&#9393404041

6XEFODXVH#69153519#E,#4,/#WKLUG#GDVK/#ILUVW#EXOOHW

7KLV#UHTXLUHPHQW#PRGLILHV#WKH#WROHUDQFHV#VSHFLILHG#LQ#,(&#943330709#IRU#FDOLEUDWLRQ#+±5#G%,#WR


HQVXUH#WKDW#WKH# ,0081,7<#7(67#/(9(/ #ZLOO#DOZD\V#EH#HTXDO#WR#RU#JUHDWHU#WKDQ# 120,1$/ /#DV#LV#WKH


FDVH#LQ#,(&#943330706#+±3#G%#WR#.9#G%,1

6XEFODXVH#69153519#E,#4,/#WKLUG#GDVK/#VHFRQG#EXOOHW


&DOLEUDWLRQ# LQ# D# 483# Ω# V\VWHP# UHGXFHV# V\VWHP# XQFHUWDLQW\# E\# KDUPRQL]LQJ# WKH# FKDUDFWHULVWLF
LPSHGDQFH#ZLWK#WKDW#RI#WKH#WHVW#HQYLURQPHQW/#ZKLFK#LV#VSHFLILHG#E\#,(&#943330709#WR#EH#483#Ω1

6XEFODXVH#69153519#E,#4,/#WKLUG#GDVK/#WKLUG#EXOOHW

7KLV# PRGLILFDWLRQ# LV# LQWHQGHG# WR# FODULI\# DQ# XQVWDWHG# SDUDPHWHU# ZLWKLQ# ,(&# 943330709# E\
PDWFKLQJ# WKH# PD[LPXP# FDOLEUDWLRQ# VWHS# VL]H# WR# WKH# PD[LPXP# WHVW# VWHS# VL]H1# 7KH# HIIHFW# LV# WR
DYRLG# XQGHWHFWHG# YDULDWLRQV# LQ# WKH# FKDUDFWHULVWLFV# RI# WKH# FDOLEUDWLRQ# V\VWHP# WKDW# PLJKW# GLVWRUW


WKH#WHVW#UHVXOWV1

6XEFODXVH#69153519#E,#4,/#IRXUWK#GDVK

7KHVH# PRGLILFDWLRQV# DUH# LQWHQGHG# WR# KDUPRQL]H# WKH# ,(&# 943330709# WHVW# HQYLURQPHQW# ZLWK# WKH
SUHVFULEHG#VDIHW\#HQYLURQPHQW#RI#,(&#9393404#IRU# (48,30(17 #DQG# 6<67(06 1


6XEFODXVH#69153519#E,#4,/#ILIWK#GDVK

6HH#$QQH[#$$$/#6XEFODXVH#69153519#E,#4,/#WKLUG#GDVK/#ILUVW#EXOOHW1


9393404052)',6##,(&+(, ±#9:#±


6XEFODXVH#69153519#E,#4,/#VL[WK#GDVK

)RU# (48,30(17 # DQG# 6<67(06 # LQ# ZKLFK# WKH# V\VWHP# FRQILJXUDWLRQ# FDQ# YDU\/# DQ# DVVXPSWLRQ# RI
,0081,7< #RI#VKRUW#LQWHUFRQQHFWLRQV#+≤4#P,#ZRXOG#QRW#EH#DSSURSULDWH1

6XEFODXVH#69153519#E,#6,


( 48,30(17 # DQG# 6<67(06 # ZLOO# LQ# JHQHUDO# QRW# WROHUDWH# WKH# LPSHGDQFH# WKDW# ZRXOG# EH# DGGHG# WR
3$7,(17 # FDEOHV# E\# D# &'11# $GGLWLRQDOO\/# LW# LV# GHVLUDEOH# WR# DOORZ# VRPH# 5)# VLJQDO# WR# UHDFK# WKH
3$7,(17 # FRXSOLQJ# SRLQW# VR# WKDW# LW# FDQ# EH# GHWHUPLQHG# ZKHWKHU# GHPRGXODWLRQ# RU# RWKHU# FRXSOLQJ
RFFXUULQJ# DW# WKLV# SRLQW# GXULQJ# WKH# ,0081,7< # WHVW# DIIHFWV# WKH# SHUIRUPDQFH# RI# WKH# (48,30(17 # RU
6<67(0 1# 7HUPLQDWLRQ# DV# VSHFLILHG/# WR# WKH# JURXQG# UHIHUHQFH# SODQH# RI# WKH# 3$7,(17 # HQG# RI
3$7,(17 0FRXSOHG#FDEOHV/#LV#QHFHVVDU\#ZKHQ#XVLQJ#FXUUHQW#FODPS#LQMHFWLRQ#LQ#RUGHU#WR#FRPSOHWH


WKH#LQMHFWLRQ#FLUFXLW/#LQFOXGLQJ#WKH# 3$7,(17 #FRXSOLQJ#SRLQW1#,(&#9393404#WUHDWV#WKH#FRQGLWLRQV#LQ
ZKLFK#WKH# 3$7,(17 #LV#IORDWLQJ#DQG#LQ#ZKLFK#WKH# 3$7,(17 #LV#JURXQGHG#DV# 1250$/#&21',7,216 1#7KH
ZD\#WKH# 3$7,(17 #FDEOHV#KDYH#EHHQ#WUHDWHG#LV#FRQVLGHUHG#WR#EH#WKH#ZRUVW#FDVH#IRU#WKLV# ,0081,7<
WHVW1# 7KH# DUWLILFLDO# KDQG# VLPXODWHV# WKH# FDSDFLWLYH# FRXSOLQJ# HIIHFW# RI# WKH# 3$7,(17 # DQG# WKH# 5&
HOHPHQW# VLPXODWHV# WKH# 5)# LPSHGDQFH# RI# WKH# 3$7,(17 # ZLWK# UHVSHFW# WR# JURXQG1# 7KHVH
UHTXLUHPHQWV# VKRXOG# QRW# EH# FKDQJHG# LQ# 3DUWLFXODU# 6WDQGDUGV# +,(&#93934050;# DQG# ,62


VWDQGDUGV#EDVHG#RQ#,(&#9393404,1

6HH#$QQH[#$$$/#6XEFODXVH#69153517#E,#6,1

2I# WKH# WHVWV# VSHFLILHG# E\# WKLV# VWDQGDUG/# XVH# RI# WKH# DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# DUH# RQO\
DSSURSULDWH# IRU# WKLV# WHVW# DQG# IRU# WKH# ,(&# 943330707# WHVW# EHFDXVH# WKH# DUWLILFLDO# KDQG/# 5&

HOHPHQW# DQG# LQWHUFRQQHFWLQJ# ZLUH# +VHH# &,635#4904,# DUH# QRW# ZHOO0FKDUDFWHUL]HG# IRU# XVH# ZLWK
KLJKHU0IUHTXHQF\# ,0081,7< #WHVWV1

6XEFODXVH#69153519#E,#6,/#WKLUG#GDVK

6HH#$QQH[#$$$/#6XEFODXVH#69153517#E,#6,/#WKLUG#GDVK1


6XEFODXVH#69153519#E,#7,

7KH# DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# UHSOLFDWH# WKH# FRXSOLQJ# SDWK# WR# JURXQG# WKURXJK# WKH
23(5$725 1# 7KH# DUWLILFLDO# KDQG# VLPXODWHV# WKH# FDSDFLWLYH# FRXSOLQJ# HIIHFW# RI# WKH# 23(5$725 # DQG
WKH# 5&# HOHPHQW# VLPXODWHV# WKH# 5)# LPSHGDQFH# RI# WKH# 23(5$725 # ZLWK# UHVSHFW# WR# JURXQG1# ,I# DQ


(48,30(17 # RU# 6<67(0 # GRHV# QRW# KDYH# 3$7,(17 0FRXSOHG# FDEOHV/# WKH# DUWLILFLDO# KDQG# DQG# 5&
HOHPHQW# VLPXODWLQJ# WKH# FDSDFLWLYH# FRXSOLQJ# HIIHFW# DQG# 5)# LPSHGDQFH# RI# WKH# 23(5$725 # DUH
UHTXLUHG#WR#FRPSOHWH#WKH#FRXSOLQJ#SDWK#GXULQJ#WHVWLQJ1#2I#WKH# WHVWV#VSHFLILHG#E\# WKLV#VWDQGDUG/
XVH# RI# WKH# DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# DUH# RQO\# DSSURSULDWH# IRU# WKLV# WHVW# DQG# IRU# WKH
,(&#943330707# WHVW# EHFDXVH# WKH# DUWLILFLDO# KDQG/# 5&# HOHPHQW# DQG# LQWHUFRQQHFWLQJ# ZLUH# DUH# QRW


ZHOO0FKDUDFWHUL]HG#IRU#XVH#ZLWK#KLJKHU0IUHTXHQF\# ,0081,7< #WHVWV1

)RLO#DQG#5&#HOHPHQWV#VHSDUDWH#IURP#WKRVH#XVHG#WR#VLPXODWH#WKH# 3$7,(17 + 6 ,#VKRXOG#EH#XVHG#IRU


23(5$725# VLPXODWLRQ/#XQOHVV#WKH# 23(5$725 #RI#D#SDUWLFXODU# (48,30(17 #RU# 6<67(0 #LV#DOZD\V#WKH
3$7,(17 1

6XEFODXVH#69153519#E,#8,


7KLV#HQVXUHV#WKDW#WKH#HTXLSRWHQWLDO#JURXQG#LV#WHVWHG1

6XEFODXVH#69153519#E,#9,

6HH#$QQH[#$$$/#6XEFODXVH#69153516#E,#6,1


)RU# (48,30(17 # DQG# 6<67(06 # WKDW# FRQWURO/# PRQLWRU# RU# PHDVXUH# D# SK\VLRORJLFDO# SDUDPHWHU/# WKH
,0081,7< # WHVW# VLJQDO# DSSOLHG# WR# HDFK# FDEOH# VKRXOG# EH# PRGXODWHG# DW# 5#+]/# L1H1#QRW# MXVW# IRU# WKH
3$7,(17 0FRXSOHG# FDEOHV1# 7KLV# HQVXUHV# WKDW# WKH# RSHUDWLRQ# RI# WKH# 3$7,(17 # )81&7,216 # DUH
HYDOXDWHG#DSSURSULDWHO\/#HYHQ#ZKHQ#WHVWLQJ#SRZHU#OLQHV#DQG#LQWHUFRQQHFWLQJ#FDEOHV1


6XEFODXVH#69153519#E,#:,#DQG#;,

6HH#$QQH[#$$$/#6XEFODXVH#69153516#E,#7,#DQG#8,1

±#9;#± 9393404052)',6##,(&+(,


6XEFODXVH#6915351:#D,

7KH#VFRSH#RI#,(&#9433307044#LV#OLPLWHG#WR#HTXLSPHQW#ZLWK#D# 5$7(' #LQSXW#FXUUHQW#QRW#H[FHHGLQJ


49# $# SHU# SKDVH1# +RZHYHU/# WKLV# VWDQGDUG# H[WHQGV# WKH# DSSOLFDWLRQ# RI# ,(&# 9433307044# EH\RQG
49#$# SHU# SKDVH# IRU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 # EHFDXVH# RI# WKH# FULWLFDO
DSSOLFDWLRQ1# ,Q# DGGLWLRQ/# WKLV# VWDQGDUG# DSSOLHV# WKH# 8# V# LQWHUUXSWLRQ# WHVW# WR# DOO# (48,30(17 # DQG
6<67(06 /#DORQJ#ZLWK#DQ#DOORZDQFH#IRU#GHYLDWLRQ#IURP#WKH#UHTXLUHPHQWV#RI#69153514#M,/#EHFDXVH


WKH#HTXLSPHQW#QHFHVVDU\#WR#SHUIRUP#WKLV#WHVW#LV#UHDGLO\#DYDLODEOH1

)RU# WKLV# WHVW/# %ORZHU# &203/,$1&(# /(9(/6 %# +VHH# 69153514# D,,# PHDQV# VKRUWHU# GXUDWLRQ# RI# WKH
YROWDJH#GLS#RU#LQWHUUXSWLRQ/#RU#OHVV#RI#D#GLS#LQ#YROWDJH1

6HH#$QQH[#$$$/#6XEFODXVH#69153515#D,#IRU#IXUWKHU#LQIRUPDWLRQ#UHJDUGLQJ#³GXULQJ#DQG#DIWHU´1


6XEFODXVH#6915351:#D,#5,

)RU# /,)( 0 6833257,1*# (48,30(17# DQG# 6<67(06 # IRU# ZKLFK# DQ# DODUP# LV# UHTXLUHG/# LW# LV# OLNHO\# WKDW
WKH#DODUP#ZLOO#QHHG#WR#EH#SRZHUHG#E\# VWRUHG# HQHUJ\# GXULQJ# SRZHU#LQWHUUXSWLRQV1# $#WHVW#VKRXOG
EH# SHUIRUPHG# WR# YHULI\# WKDW# VXIILFLHQW# VWRUHG# HQHUJ\# LV# DYDLODEOH# WR# RSHUDWH# WKLV# DODUP# IRU# DQ
H[WHQGHG# SHULRG# RI# WLPH/# H1J1# 8# PLQXWHV# RU# DV# PD\# EH# VSHFLILHG# LQ# 3DUWLFXODU# 6WDQGDUGV


+,(&#93934050[,1

6XEFODXVH#6915351;

$GGLWLRQDO#PDJQHWLF#ILHOG# ,0081,7< #UHTXLUHPHQWV#DUH#XQGHU#FRQVLGHUDWLRQ1 5<



6XEFODXVH#6915351;14#D,

,W#LV#H[SHFWHG#WKDW#YLGHR#GLVSOD\#WHUPLQDOV#DQG#RWKHU#HOHFWURQ0EHDP#GHYLFHV#+H1J1#;0UD\# LPDJH
LQWHQVLILHUV,# ZLOO# XVH# D# MXVWLILFDWLRQ# IRU# ORZHU# ,0081,7<# &203/,$1&(# /(9(/6 # DV# DOORZHG# E\
69153514#D,1


127( $Q# ,0081,7<#7(67#/(9(/ #RI#6/33#$2P#LV#HTXLYDOHQW#WR#D#PDJQHWLF#IOX[#GHQVLW\#RI#6/:;#µ7#+3/36:;#*V,#LQ#IUHH


VSDFH1

6HH#$QQH[#$$$/#6XEFODXVH#69153515#D,#IRU#IXUWKHU#LQIRUPDWLRQ#UHJDUGLQJ#³GXULQJ#DQG#DIWHU´1

6XEFODXVH#6915351;14#E,#4,


6KRUW0GXUDWLRQ#WHVWV#DUH#QRW#DSSOLFDEOH#WR# (48,30(17 #DQG# 6<67(06 1

6XEFODXVH#6915351;15


7KLV# WHVW# LV# PDLQO\# DSSOLFDEOH# WR# SURGXFWV# LQWHQGHG# WR# EH# LQVWDOOHG# LQ# HOHFWULFDO# SODQWV1# 7KH
JHQHUDO# KRVSLWDO# HQYLURQPHQW# GLIIHUV# VXEVWDQWLDOO\# IURP# WKDW# LQIOXHQFHG# E\# KLJK0YROWDJH/# KLJK0
SRZHU#VZLWFKJHDU1#7KHUHIRUH/#WKLV#WHVW#LV#QRW#DSSOLFDEOH#WR# (48,30(17 #DQG# 6<67(06 1

6XEFODXVH#6915351;16

7KLV#WHVW#LV#PDLQO\#DSSOLFDEOH#WR#SURGXFWV#LQWHQGHG#WR#EH#LQVWDOOHG#LQ#KLJK0YROWDJH#VXEVWDWLRQV1
7KH# JHQHUDO# KRVSLWDO# HQYLURQPHQW# GLIIHUV# VXEVWDQWLDOO\# IURP# WKDW# LQIOXHQFHG# E\# KLJK0YROWDJH/


KLJK0SRZHU#VZLWFKJHDU1#7KHUHIRUH/#WKLV#WHVW#LV#QRW#DSSOLFDEOH#WR# (48,30(17 #DQG# 6<67(06 1

6XEFODXVH#6915351<

7KLV# WHVW# LV# LQWHQGHG# IRU# YHU\# VSHFLDO# HTXLSPHQW# LQ# ODUJH# LQVWDOODWLRQV/# RI# ZKLFK# PDLQV# DQG
LQWHUFRQQHFWLQJ# FDEOH# OHQJWK# LV# DW# OHDVW# DSSURDFKLQJ# D# TXDUWHU# ZDYHOHQJWK# DW# 483#N+]1# )RU


483#N+]/# λ27# # 833# P1# &DEOHV# 833# P# LQ# OHQJWK# DUH# JHQHUDOO\# QRW# XVHG# LQ# D# KRVSLWDO
HQYLURQPHQW1# 0RUHRYHU/# UDGLR# VHUYLFHV# LQ# WKLV# IUHTXHQF\# EDQG# DUH# HLWKHU# VKRUW0UDQJH
HTXLSPHQW# RU# PDULWLPH# QDYLJDWLRQ# V\VWHPV1# 7KHUHIRUH/# QR# UHTXLUHPHQWV# DSSO\# WR# (48,30(17
DQG# 6<67(06 1


BBBBBBBBBBB
5< 8QGHU#FRQVLGHUDWLRQ#E\#,(&#7&#::#DQG#,(&#6&#95$1

9393404052)',6##,(&+(, ±#9<#±


6XEFODXVH#691535143

7KH# ULQJ# ZDYH# DQG# GDPSHG# RVFLOODWRU\# ZDYH# WHVWV# DUH# QRW# DSSOLFDEOH# WR# (48,30(17 # DQG
6<67(06 #EHFDXVH# ,0081,7< #WR#WUDQVLHQWV#RQ#SRZHU#PDLQV#LV#DOUHDG\#HVWDEOLVKHG#VXIILFLHQWO\#E\
WKH# VXUJH# DQG# EXUVW# WHVWV1# &RPSDULQJ# WKH# SRZHU# GHQVLW\# VSHFWUD# RI# ULQJ# ZDYHV# DQG# VXUJHV
VKRZV#WKH#VHYHULW\#RI#WKH#ULQJ#ZDYH#+ZLWK#WKH#VDPH#YROWDJH# OHYHO,# WR# EH# ORZHU# WKDQ# WKDW# RI#WKH
VXUJH1# ,Q# DGGLWLRQ/# SRZHU# OLQH# ILOWHUV# FRPPRQO\# IRXQG# LQ# HTXLSPHQW# WR# FRQWURO# (0,66,216 # DOVR


LPSHGH# IUHTXHQFLHV# DURXQG# 433# N+]# IURP# HQWHULQJ# HTXLSPHQW1# ,Q# SUDFWLFH/# HTXLSPHQW# WKDW
SDVVHV#WKH#VXUJH#WHVW#DOVR#SDVVHV#WKH#ULQJ#ZDYH#WHVW1

6XEFODXVH#691535144

7KLV#WHVW#LV#PDLQO\#DSSOLFDEOH#WR#SURGXFWV#VHQVLWLYH#WR#WKH#SUHFLVH#WLPH# RI#WKH#]HUR#FURVVLQJ# RI


WKH# D1F1# 0$,16# 92/7$*( 1# 0 (',&$/# (/(&75,&$/# (48,30(17# DQG# 6<67(06 # IRU# XVH# LQ# WKH# JHQHUDO
KRVSLWDO# HQYLURQPHQW# DUH/# DV# D# UXOH/# QRW# VXVFHSWLEOH# WR# VPDOO# FKDQJHV# LQ# WKH# WLPH# RI# WKH# ]HUR
FURVVLQJ# RI# WKH# D1F1# 0$,16# 92/7$*( 1# 7KHUHIRUH/# QR# UHTXLUHPHQWV# DSSO\# WR# (48,30(17 # DQG
6<67(06 1

6XEFODXVH#691535145


7KLV# VWDQGDUG# LV# XQGHU# GHYHORSPHQW># WKHUHIRUH/# QR# UHTXLUHPHQWV# DSSO\# WR# (48,30(17 # DQG
6<67(06 1

6XEFODXVH#691535146

7KLV# VWDQGDUG# LV# XQGHU# GHYHORSPHQW># WKHUHIRUH/# QR# UHTXLUHPHQWV# DSSO\# WR# (48,30(17 # DQG
6<67(06 1








±#:3#± 9393404052)',6##,(&+(,


$UHD#RI#XQLIRUP#ILHOG#+4/8#P#[#4/8#P,

3RZHU#GLVWULEXWLRQ#ER[


)LEHU#RSWLF#FDEOHV#H[LWLQJ
HTXLSPHQW#XQGHU#WHVW
4/8#P
)LEHU#RSWLF
FRQYHUWHU


0DLQV#FDEOH
4#P#H[SRVHG#56565
FDEOH#+EXQGOH#LI#ORQJHU
3/4#P WKDQ#VKRZQ,
/RZ#LQGXFWLYHO\0
EXQGOHG#FDEOH
+4/8#P,
3$7,(17


SK\VLRORJLFDO
VLJQDO 3/6#P#0#3/7#P
VLPXODWRU
4#P (TXLSPHQW
3$7,(17 XQGHU#WHVW
FRXSOLQJ
SRLQW 3$7,(17

FDEOH
3/;#P


127(## 2QO\#RQH#RULHQWDWLRQ#LV#VKRZQ1

)LJXUH#$$$14#±#([DPSOH#RI#FDEOH#DUUDQJHPHQW#IRU#UDGLDWHG# ,0081,7<#WHVW
+VHH#69153516#E,#;,







9393404052)',6##,(&+(, ±#:4#±


0D[LPXP#GLPHQVLRQ


(48,30(17#VL]H

&DEOH#OHQJWK
(48,30(17


0D[LPXP#VSHFLILHG
OHQJWK#RI#FDEOH


0D[LPXP#GLPHQVLRQ
&DEOH#4#OHQJWK &DEOH#5#OHQJWK

0D[LPXP#VSHFLILHG (48,30(17 0D[LPXP#VSHFLILHG
OHQJWK#RI#FDEOH#4 (48,30(17 (48,30(17 OHQJWK#RI#FDEOH#5
VL]H


)LJXUH#$$$15#±#([DPSOHV#VKRZLQJ#PD[LPXP#GLPHQVLRQ#IRU#DQ# (48,30(17
ZLWK#RQH#DQG#ZLWK#WZR#FDEOHV#+VHH#69153519#D,#8#DQG#9,







±#:5#± 9393404052)',6##,(&+(,


$QQH[#%%%
+LQIRUPDWLYH,

([DPSOH#FRPSOHWLRQ#RI#7DEOHV#534#WKURXJK#53;


%%%14## ([DPSOH#+4,#FRPSOHWLRQ#RI#7DEOH#534

7KLV# H[DPSOH# LV# D# K\SRWKHWLFDO# &,635# 44# *URXS# 4# (48,30(17 # RU# 6<67(0# WKDW# FRPSOLHV# ZLWK
&ODVV#%/# ,(&# 943330605# &ODVV# $# DQG# ,(&# 9433306061# )RU# WKH# SXUSRVH# RI# WKLV# H[DPSOH/# WKH
K\SRWKHWLFDO# (48,30(17 #RU# 6<67(0#LV#D#SDUWLFXODU#PDQXIDFWXUHU¶V#PRGHO#3341


7DEOH#534#WKHQ#DSSHDUV#DV#VKRZQ#LQ#7DEOH#%%%141

7DEOH#%%%14#±#([DPSOH#+4,#RI#FRPSOHWHG#7DEOH#534

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#HPLVVLRQV
7KH#0RGHO#334#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU#WKH


XVHU#RI#WKH#0RGHO#334#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1
(PLVVLRQV#WHVW &RPSOLDQFH (OHFWURPDJQHWLF#HQYLURQPHQW#±#JXLGDQFH
7KH#0RGHO#334#XVHV#5)#HQHUJ\#RQO\#IRU#LWV#LQWHUQDO
5)#HPLVVLRQV IXQFWLRQ1#7KHUHIRUH/#LWV#5)#HPLVVLRQV#DUH#YHU\#ORZ#DQG
*URXS#4
DUH#QRW#OLNHO\#WR#FDXVH#DQ\#LQWHUIHUHQFH#LQ#QHDUE\

&,635#44
HOHFWURQLF#HTXLSPHQW1
5)#HPLVVLRQV 7KH#0RGHO#334#LV#VXLWDEOH#IRU#XVH#LQ#DOO#HVWDEOLVKPHQWV/
&ODVV#% LQFOXGLQJ#GRPHVWLF#HVWDEOLVKPHQWV#DQG#WKRVH#GLUHFWO\
&,635#44 FRQQHFWHG#WR#WKH#SXEOLF#ORZ0YROWDJH#SRZHU#VXSSO\
+DUPRQLF#HPLVVLRQV QHWZRUN#WKDW#VXSSOLHV#EXLOGLQJV#XVHG#IRU#GRPHVWLF
&ODVV#$ SXUSRVHV1
,(&#943330605


9ROWDJH#IOXFWXDWLRQV2
IOLFNHU#HPLVVLRQV &RPSOLHV
,(&#943330606







9393404052)',6##,(&+(, ±#:6#±


%%%15## ([DPSOH#+5,#FRPSOHWLRQ#RI#7DEOH#534

7KLV# H[DPSOH# LV# D# K\SRWKHWLFDO# &,635# 44# *URXS# 5# (48,30(17 # RU# 6<67(0# WKDW# FRPSOLHV# ZLWK
&ODVV#$#DQG#IRU#ZKLFK#,(&#943330605#DQG#,(&# 943330606# DUH#QRW# DSSOLFDEOH1# )RU# WKH# SXUSRVH
RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO# (48,30(17 # RU# 6<67(0# LV# D# SDUWLFXODU# PDQXIDFWXUHU¶V# 0RGHO
3351


7DEOH#534#WKHQ#DSSHDUV#DV#VKRZQ#LQ#7DEOH#%%%151

7DEOH#%%%15#±#([DPSOH#+5,#RI#FRPSOHWHG#7DEOH#534

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#HPLVVLRQV


7KH#0RGHO#335#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU#WKH
XVHU#RI#WKH#0RGHO#335#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1
(PLVVLRQV#WHVW &RPSOLDQFH (OHFWURPDJQHWLF#HQYLURQPHQW#±#JXLGDQFH
7KH#0RGHO#335#PXVW#HPLW#HOHFWURPDJQHWLF#HQHUJ\#LQ#RUGHU
5)#HPLVVLRQV WR#SHUIRUP#LWV#LQWHQGHG#IXQFWLRQ1#1HDUE\#HOHFWURQLF
*URXS#5 HTXLSPHQW#PD\#EH#DIIHFWHG1
&,635#44


5)#HPLVVLRQV 7KH#0RGHO#335#LV#VXLWDEOH#IRU#XVH#LQ#DOO#HVWDEOLVKPHQWV
&ODVV#$ RWKHU#WKDQ#GRPHVWLF#DQG#WKRVH#GLUHFWO\#FRQQHFWHG#WR#WKH
&,635#44 SXEOLF#ORZ0YROWDJH#SRZHU#VXSSO\#QHWZRUN#WKDW#VXSSOLHV
+DUPRQLF#HPLVVLRQV EXLOGLQJV#XVHG#IRU#GRPHVWLF#SXUSRVHV1
1RW#DSSOLFDEOH

,(&#943330605
9ROWDJH#IOXFWXDWLRQV2
IOLFNHU#HPLVVLRQV 1RW#DSSOLFDEOH
,(&#943330606








±#:7#± 9393404052)',6##,(&+(,


%%%16## ([DPSOH#+6,#FRPSOHWLRQ#RI#7DEOH#534

7KLV#H[DPSOH#LV#D#K\SRWKHWLFDO#PDJQHWLF#UHVRQDQFH#LPDJLQJ#+05,,# 6<67(0#WKDW#LV#VSHFLILHG#IRU
XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ/# FRPSOLHV# ZLWK# &,635# 44# &ODVV# $# ZKHQ# LQVWDOOHG# LQ# WKH
VSHFLILHG# W\SH# RI# VKLHOGHG# ORFDWLRQ/# DQG# IRU# ZKLFK# ,(&# 943330605# DQG# ,(&# 943330606# DUH# QRW
DSSOLFDEOH1# )RU# WKH# SXUSRVH# RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO# 05,# 6<67(0# LV# D# SDUWLFXODU
PDQXIDFWXUHU¶V#0RGHO#3361#+6HH#DOVR#%%%1;1,


7DEOH#534#WKHQ#DSSHDUV#DV#VKRZQ#LQ#7DEOH#%%%161

7DEOH#%%%16#±#([DPSOH#+6,#RI#FRPSOHWHG#7DEOH#534


*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#HPLVVLRQV
7KH#0RGHO#336#05,#V\VWHP#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH
FXVWRPHU#RU#WKH#XVHU#RI#WKH#0RGHO#336#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1
(PLVVLRQV#WHVW &RPSOLDQFH (OHFWURPDJQHWLF#HQYLURQPHQW#±#JXLGDQFH
7KH#0RGHO#336#PXVW#HPLW#HOHFWURPDJQHWLF#HQHUJ\#LQ#RUGHU
5)#HPLVVLRQV WR#SHUIRUP#LWV#LQWHQGHG#IXQFWLRQ1#1HDUE\#HOHFWURQLF


*URXS#5 HTXLSPHQW#PD\#EH#DIIHFWHG1
&,635#44

&ODVV#$ 7KH#0RGHO#336#05,#V\VWHP#PXVW#EH#XVHG#RQO\#LQ#D
+7KH#0RGHO VKLHOGHG#ORFDWLRQ#ZLWK#D#PLQLPXP#5)#VKLHOGLQJ
336#05, HIIHFWLYHQHVV#DQG/#IRU#HDFK#FDEOH#WKDW#H[LWV#WKH#VKLHOGHG
5)#HPLVVLRQV V\VWHP#LQ ORFDWLRQ/#D#PLQLPXP#5)#ILOWHU#DWWHQXDWLRQ#RI#;3#G%#IURP

&,635#44 FRPELQDWLRQ 43#0+]#WR#53#0+]/#433#G%#IURP#53#0+]#WR#;3#0+]#DQG
ZLWK#WKH ;3#G%#IURP#;3#0+]#WR#433#0+]1#+7KH#PLQLPXP#DW#53#0+]
VKLHOGHG LV#433#G%#DQG#WKH#PLQLPXP#DW#;3#0+]#LV#;3#G%1,
ORFDWLRQ,
7KH#0RGHO#336#05,#V\VWHP/#ZKHQ#LQVWDOOHG#LQ#VXFK#D
+DUPRQLF#HPLVVLRQV VKLHOGHG#ORFDWLRQ/#LV#VXLWDEOH#IRU#XVH#LQ#DOO#HVWDEOLVKPHQWV
1RW#DSSOLFDEOH RWKHU#WKDQ#GRPHVWLF#DQG#WKRVH#GLUHFWO\#FRQQHFWHG#WR#WKH
,(&#943330605 SXEOLF#ORZ0YROWDJH#SRZHU#VXSSO\#QHWZRUN#WKDW#VXSSOLHV


EXLOGLQJV#XVHG#IRU#GRPHVWLF#SXUSRVHV1
9ROWDJH#IOXFWXDWLRQV2
IOLFNHU#HPLVVLRQV 1RW#DSSOLFDEOH
,(&#943330606
127(## ,W#LV#HVVHQWLDO#WKDW#WKH#DFWXDO#VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ#RI#WKH#VKLHOGHG#ORFDWLRQ#EH
YHULILHG#WR#DVVXUH#WKDW#WKH\#PHHW#WKH#PLQLPXP#VSHFLILFDWLRQV1







9393404052)',6##,(&+(, ±#:8#±


%%%17## ([DPSOH#FRPSOHWLRQ#RI#7DEOH#535

7KLV#H[DPSOH#LV#D#K\SRWKHWLFDO#LPDJH#LQWHQVLILHU#WKDW#FRPSOLHV#ZLWK#DOO#,(&#93934# 7(67# /(9(/6


RI# WKLV# VWDQGDUG# H[FHSW# IRU# WKH# SRZHU# IUHTXHQF\# PDJQHWLF# ILHOG# ,0081,7< # UHTXLUHPHQW1# 7KH
SRZHU#IUHTXHQF\#PDJQHWLF#ILHOG# ,0081,7< #RI# WKH#H[DPSOH#LPDJH# LQWHQVLILHU#LV#3/6#$2P1#)RU# WKH
SXUSRVH# RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO# LPDJH# LQWHQVLILHU# LV# D# SDUWLFXODU# PDQXIDFWXUHU¶V
0RGHO#3371


7DEOH#535#WKHQ#DSSHDUV#DV#VKRZQ#LQ#7DEOH#%%%171

7DEOH#%%%17#±#([DPSOH#RI#FRPSOHWHG#7DEOH#535


*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#0RGHO#337#LPDJH#LQWHQVLILHU#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH
FXVWRPHU#RU#WKH#XVHU#RI#WKH#0RGHO#337#LPDJH#LQWHQVLILHU#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1
,(&#93934 (OHFWURPDJQHWLF#HQYLURQPHQW#±
,PPXQLW\#WHVW &RPSOLDQFH#OHYHO
WHVW#OHYHO JXLGDQFH
(OHFWURVWDWLF ±9#N9#FRQWDFW ±9#N9#FRQWDFW )ORRUV#VKRXOG#EH#ZRRG/#FRQFUHWH#RU


GLVFKDUJH#+(6', FHUDPLF#WLOH1#,I#IORRUV#DUH#FRYHUHG#ZLWK
±;#N9#DLU ±;#N9#DLU V\QWKHWLF#PDWHULDO/#WKH#UHODWLYH#KXPLGLW\
,(&#943330705 VKRXOG#EH#DW#OHDVW#63#(1
(OHFWULFDO#IDVW ±5#N9#IRU#SRZHU ±5#N9#IRU#SRZHU 0DLQV#SRZHU#TXDOLW\#VKRXOG#EH#WKDW#RI#D
WUDQVLHQW2EXUVW VXSSO\#OLQHV VXSSO\#OLQHV W\SLFDO#FRPPHUFLDO#RU#KRVSLWDO
HQYLURQPHQW1

,(&#943330707 ±4#N9#IRU#LQSXW2RXWSXW ±4#N9#IRU#LQSXW2RXWSXW
OLQHV OLQHV
6XUJH ±4#N9#GLIIHUHQWLDO ±4#N9#GLIIHUHQWLDO 0DLQV#SRZHU#TXDOLW\#VKRXOG#EH#WKDW#RI#D
PRGH PRGH W\SLFDO#FRPPHUFLDO#RU#KRVSLWDO
,(&#943330708 HQYLURQPHQW1
±5#N9#FRPPRQ#PRGH ±5#N9#FRPPRQ#PRGH
9ROWDJH#GLSV/#VKRUW ?8#(#8 7 ?8#(#8 7 0DLQV#SRZHU#TXDOLW\#VKRXOG#EH#WKDW#RI#D


LQWHUUXSWLRQV#DQG +!<8#(#GLS#LQ#8 7 , +!<8#(#GLS#LQ#8 7 , W\SLFDO#FRPPHUFLDO#RU#KRVSLWDO


YROWDJH#YDULDWLRQV IRU#3/8#F\FOH IRU#318#F\FOH HQYLURQPHQW1#,I#WKH#XVHU#RI#WKH#0RGHO
RQ#SRZHU#VXSSO\ 337#UHTXLUHV#FRQWLQXHG#RSHUDWLRQ
LQSXW#OLQHV 73#(#8 7 73#(#8 7 GXULQJ#SRZHU#PDLQV#LQWHUUXSWLRQV/#LW#LV
+93#(#GLS#LQ#8 7 , +93#(#GLS#LQ#8 7 , UHFRPPHQGHG#WKDW#WKH#0RGHO#337
,(&#9433307044 IRU#8#F\FOHV IRU#8#F\FOHV LPDJH#LQWHQVLILHU#EH#SRZHUHG#IURP#DQ


:3#(#8 7 :3#(#8 7 XQLQWHUUXSWLEOH#SRZHU#VXSSO\#RU#D


+63#(#GLS#LQ#8 7 , +63#(#GLS#LQ#8 7 , EDWWHU\1
IRU#58#F\FOHV IRU#58#F\FOHV
?8#(#8 7 ?8#(#8 7
+!<8#(#GLS#LQ#8 7 , +!<8#(#GLS#LQ#8 7 ,
IRU#8#V IRU#8#V


3RZHU#IUHTXHQF\ 6#$2P 3/6#$2P ,I#LPDJH#GLVWRUWLRQ#RFFXUV/#LW#PD\#EH


+83293#+], QHFHVVDU\#WR#SRVLWLRQ#WKH#0RGHO#337
PDJQHWLF#ILHOG LPDJH#LQWHQVLILHU#IXUWKHU#IURP#VRXUFHV
RI#SRZHU#IUHTXHQF\#PDJQHWLF#ILHOGV#RU
,(&#94333070; WR#LQVWDOO#PDJQHWLF#VKLHOGLQJ1#7KH
SRZHU#IUHTXHQF\#PDJQHWLF#ILHOG#VKRXOG
EH#PHDVXUHG#LQ#WKH#LQWHQGHG
LQVWDOODWLRQ#ORFDWLRQ#WR#DVVXUH#WKDW#LW#LV
VXIILFLHQWO\#ORZ1


127(## #8 7 #LV#WKH#D1F1#PDLQV#YROWDJH#SULRU#WR#DSSOLFDWLRQ#RI#WKH#WHVW#OHYHO1



±#:9#± 9393404052)',6##,(&+(,


%%%18## ([DPSOH#FRPSOHWLRQ#RI#7DEOHV#536#DQG#538

7KLV# H[DPSOH# LV# D# K\SRWKHWLFDO# /,)( 0 6833257,1*# (48,30(17# RU# 6<67(01# 7KXV# 7DEOHV# 536# DQG
538# DUH# XVHG1# )RU# WKH# SXUSRVH# RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO# (48,30(17 # RU# 6<67(0# LV# D
SDUWLFXODU#PDQXIDFWXUHU¶V# 0RGHO# 3381#7KH# 0RGHO# 338# PHHWV# WKH# ,(&# 93934# 7(67# /(9(/ # RI# WKLV
VWDQGDUG#IRU#WKH#UDGLDWHG# ,0081,7< #WHVW#EXW#QRW#IRU#WKH#FRQGXFWHG# ,0081,7< #WHVWV1#,W#LV#DVVXPHG
WKDW# WKH# MXVWLILFDWLRQ# IRU# WKLV# LV# VXIILFLHQW# DQG# LV# SURYLGHG# LQ# WKH# $&&203$1<,1*# '2&80(176 1


%HFDXVH# WKH# FODLPHG# &203/,$1&(# /(9(/6 # PXVW# EH# DQ# ,0081,7<# 7(67# /(9(/ # RI# WKH# EDVLF# (0&
VWDQGDUG/# WKH# &203/,$1&(# /(9(/6 # DUH# ORZHU# WKDQ# WKH# DFWXDO# ,0081,7< # /(9(/6 /# DV# VKRZQ# LQ
7DEOH#%%%181

7DEOH#%%%18#±#([DPSOH#+4,#WHVW/# ,0081,7< #DQG# &203/,$1&(#/(9(/6


,(&#93934
, 0081,7< #WHVW
7(67#/(9(/
$FWXDO# ,0081,7<#/(9(/ & 203/,$1&(#/(9(/

&RQGXFWHG#5) 6#9UPV
,(&#943330709 483#N+]#WR#;3#0+] 5#9UPV 4#9UPV
RXWVLGH#,60#EDQGV


&RQGXFWHG#5) 43#9UPV
,(&#943330709 483#N+]#WR#;3#0+] 5#9UPV 4#9UPV
LQ#,60#EDQGV
5DGLDWHG#5) 43#92P
46#92P 43#92P
,(&#943330706 ;3#0+]#WR#5/8#*+]

7KXV/# 9 4 # # 4/# 9 5 # # 4# DQG# ( 4 # # 431# &DOFXODWLQJ# WKH# H[SUHVVLRQV# LQ# VTXDUH# EUDFNHWV# LQ# 7DEOHV
536#DQG#538#DQG#URXQGLQJ#WR#WZR#VLJQLILFDQW#GLJLWV#\LHOGV#WKH#IROORZLQJ=

6/8 6/8 45 45 45 45 56 56
= = 6/8 = = 45 = = 4/5 = = 5/6


94 4 95 4 (4 43 (4 43

7KHVH#YDOXHV#DUH#WKHQ#XVHG#WR#FRPSOHWH#7DEOH#536/#DV#VKRZQ#LQ#7DEOH#%%%19/#DQG#7DEOH#538/
DV#VKRZQ#LQ#7DEOH#%%%1:1







9393404052)',6##,(&+(, ±#::#±


7DEOH#%%%19#±#([DPSOH#RI#FRPSOHWHG#7DEOH#536

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#0RGHO#338#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU#WKH#XVHU#RI
WKH#0RGHO#338#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HOHFWURPDJQHWLF#HQYLURQPHQW1


&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ±# JXLGDQFH

3RUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW
VKRXOG#EH#XVHG#QR#FORVHU#WR#DQ\#SDUW#RI#WKH#0RGHO
338/#LQFOXGLQJ#FDEOHV/#WKDQ#WKH#UHFRPPHQGHG
VHSDUDWLRQ#GLVWDQFH#FDOFXODWHG#IURP#WKH#HTXDWLRQ
DSSOLFDEOH#WR#WKH#IUHTXHQF\#RI#WKH#WUDQVPLWWHU1


5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH

&RQGXFWHG#5) 6#9UPV 4#9UPV G 6/8 3


,(&#943330709 483#N+]#WR#;3#0+]
RXWVLGH#,60#EDQGV D


43#9UPV 4#9UPV G = 45 3
483#N+]#WR#;3#0+]
LQ#,60#EDQGV D

5DGLDWHG#5) 43#92P 43#92P G 4/5 3 ## ;3#0+]#WR#;33#0+]
,(&#943330706 ;3#0+]#WR#5/8#*+]

G 5/6 3 ## ;33#0+]#WR#5/8#*+]


ZKHUH#3#LV#WKH#PD[LPXP#RXWSXW#SRZHU#UDWLQJ#RI#WKH
WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU
PDQXIDFWXUHU#DQG#G#LV#WKH#UHFRPPHQGHG#VHSDUDWLRQ
GLVWDQFH#LQ#PHWUHV#+P,1 E
)LHOG#VWUHQJWKV#IURP#IL[HG#5)#WUDQVPLWWHUV/#DV


GHWHUPLQHG#E\#DQ#HOHFWURPDJQHWLF#VLWH#VXUYH\/ F
VKRXOG#EH#OHVV#WKDQ#WKH#FRPSOLDQFH#OHYHO#LQ#HDFK
IUHTXHQF\#UDQJH1 G
,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=


127(#4## $W#;3#0+]#DQG#;33#0+]/#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1
127(#5## 7KHVH#JXLGHOLQHV#PD\#QRW#DSSO\#LQ#DOO#VLWXDWLRQV1#(OHFWURPDJQHWLF#SURSDJDWLRQ#LV#DIIHFWHG#E\#DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
D
7KH# ,60# +LQGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO,# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DUH# 9/:98# 0+]# WR# 9/:<8# 0+]>


46/886#0+]#WR#46/89:#0+]>#59/<8:#0+]#WR#5:/5;6#0+]>#DQG#73/99#0+]#WR#73/:3#0+]1
E
7KH# FRPSOLDQFH# OHYHOV# LQ# WKH# ,60# IUHTXHQF\# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DQG# LQ# WKH# IUHTXHQF\# UDQJH
;3#0+]# WR# 5/8# *+]# DUH# LQWHQGHG# WR# GHFUHDVH# WKH# OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW
FRXOG# FDXVH# LQWHUIHUHQFH# LI# LW# LV# LQDGYHUWHQWO\# EURXJKW# LQWR# SDWLHQW# DUHDV1# )RU# WKLV# UHDVRQ/# DQ# DGGLWLRQDO# IDFWRU# RI
4326#LV#XVHG#LQ#FDOFXODWLQJ#WKH#UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH#IRU#WUDQVPLWWHUV#LQ#WKHVH#IUHTXHQF\#UDQJHV1


F
)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG
PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH
VXUYH\# VKRXOG# EH# FRQVLGHUHG1# ,I# WKH# PHDVXUHG# ILHOG# VWUHQJWK# LQ# WKH# ORFDWLRQ# LQ# ZKLFK# WKH# 0RGHO# 338# LV# XVHG
H[FHHGV# WKH# DSSOLFDEOH# 5)# FRPSOLDQFH# OHYHO# DERYH/# WKH# 0RGHO# 338# VKRXOG# EH# REVHUYHG# WR# YHULI\# QRUPDO
RSHUDWLRQ1#,I#DEQRUPDO#SHUIRUPDQFH#LV#REVHUYHG/#DGGLWLRQDO#PHDVXUHV#PD\#EH# QHFHVVDU\/#VXFK#DV# UH0RULHQWLQJ# RU


UHORFDWLQJ#WKH#0RGHO#3381
G
# 2YHU#WKH#IUHTXHQF\#UDQJH#483#N+]#WR#;3#0+]/#ILHOG#VWUHQJWKV#VKRXOG#EH#OHVV#WKDQ#4#92P1

±#:;#± 9393404052)',6##,(&+(,


7DEOH#%%%1:#±#([DPSOH#RI#FRPSOHWHG#7DEOH#538

5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ
SRUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH#0RGHO#338
7KH# 0RGHO# 338# LV# LQWHQGHG# IRU# XVH# LQ# DQ# HOHFWURPDJQHWLF# HQYLURQPHQW# LQ# ZKLFK# UDGLDWHG# 5)# GLVWXUEDQFHV# DUH# FRQWUROOHG1
7KH# FXVWRPHU# RU# WKH# XVHU# RI# WKH# 0RGHO# 338# FDQ# KHOS# SUHYHQW# HOHFWURPDJQHWLF# LQWHUIHUHQFH# E\# PDLQWDLQLQJ# D# PLQLPXP


GLVWDQFH#EHWZHHQ# SRUWDEOH#DQG# PRELOH# 5)# FRPPXQLFDWLRQV# HTXLSPHQW# +WUDQVPLWWHUV,# DQG# WKH# 0RGHO# 338# DV# UHFRPPHQGHG
EHORZ/#DFFRUGLQJ#WR#WKH#PD[LPXP#RXWSXW#SRZHU#RI#WKH#FRPPXQLFDWLRQV#HTXLSPHQW1
6HSDUDWLRQ#GLVWDQFH#DFFRUGLQJ#WR#IUHTXHQF\#RI#WUDQVPLWWHU
P
483#N+]#WR#;3#0+] 483#N+]#WR#;3#0+] ;3#0+]#WR#;33#0+] ;33#0+]#WR#5/8#*+]
RXWVLGH#,60 LQ#,60#EDQGV


5DWHG#PD[LPXP#RXWSXW EDQGV
SRZHU#RI#WUDQVPLWWHU G = 45 3 G = 4/5 3 G 5/6 3
: G 6/8 3
3/34 3/68 4/5 3/45 3/56
3/4 4/4 6/; 3/6; 3/:6


4 6/8 45 4/5 5/6
43 44 6; 6/; :/6
433 68 453 45 56
)RU#WUDQVPLWWHUV#UDWHG#DW#D#PD[LPXP#RXWSXW#SRZHU#QRW#OLVWHG#DERYH/#WKH#UHFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH#G#LQ#PHWUHV#+P,
FDQ# EH# GHWHUPLQHG# XVLQJ# WKH# HTXDWLRQ# DSSOLFDEOH# WR# WKH# IUHTXHQF\# RI# WKH# WUDQVPLWWHU/# ZKHUH# 3# LV# WKH# PD[LPXP# RXWSXW

SRZHU#UDWLQJ#RI#WKH#WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU#PDQXIDFWXUHU1
127(#4## $W#;3#0+]#DQG#;33#0+]/#WKH#VHSDUDWLRQ#GLVWDQFH#IRU#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1
127(# 5## 7KH# ,60# +LQGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO,# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DUH# 9/:98#0+]# WR# 9/:<8#0+]>
46/886#0+]#WR#46/89:#0+]>#59/<8:#0+]#WR#5:/5;6#0+]>#DQG#73/99#0+]#WR#73/:3#0+]1
127(# 6## $Q# DGGLWLRQDO# IDFWRU# RI# 4326# LV# XVHG# LQ# FDOFXODWLQJ# WKH# UHFRPPHQGHG# VHSDUDWLRQ# GLVWDQFH# IRU# WUDQVPLWWHUV# LQ# WKH
,60# IUHTXHQF\# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DQG# LQ# WKH# IUHTXHQF\# UDQJH# ;3#0+]# WR# 5/8# *+]# WR# GHFUHDVH# WKH


OLNHOLKRRG# WKDW# PRELOH2SRUWDEOH# FRPPXQLFDWLRQV# HTXLSPHQW# FRXOG# FDXVH# LQWHUIHUHQFH# LI# LW# LV# LQDGYHUWHQWO\# EURXJKW# LQWR
SDWLHQW#DUHDV1
127(# 7## 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ# DQG
UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1


%%%19## ([DPSOH#FRPSOHWLRQ#RI#7DEOHV#537#DQG#539

7KLV# H[DPSOH# LV# D# K\SRWKHWLFDO# (48,30(17 # RU# 6<67(0# WKDW# LV# QRW# /,)( 0 6833257,1* # DQG# WKDW
PHHWV# WKH# ,(&# 93934# 7(67# /(9(/6 # RI# WKLV# VWDQGDUG# IRU# WKH# UDGLDWHG# DQG# FRQGXFWHG# ,0081,7<


WHVWV1# 7KXV/# 7DEOHV# 537# DQG# 539# DUH# XVHG1# )RU# WKH# SXUSRVH# RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO
(48,30(17 #RU# 6<67(0 #LV#D#SDUWLFXODU#PDQXIDFWXUHU¶V#0RGHO#3391

8VLQJ# WKH# ,(&# 93934# 7(67# /(9(/6 /# 9 4 # # 6# DQG# ( 4 # # 61# &DOFXODWLQJ# WKH# H[SUHVVLRQV# LQ# VTXDUH
EUDFNHWV#LQ#7DEOH#537#DQG#539#DQG#URXQGLQJ#WR#WZR#VLJQLILFDQW#GLJLWV#\LHOGV#WKH#IROORZLQJ=

6/8 6/8 6/8 6/8 : :




= ≈ 4/5 = ≈ 4/5 = ≈ 5/6


94 6 (4 6 (4 6

7KHVH#YDOXHV#DUH#WKHQ#XVHG#WR#FRPSOHWH#7DEOH#537/#DV#VKRZQ#LQ#7DEOH#%%%1;/#DQG#7DEOH#539/
DV#VKRZQ#LQ#7DEOH#%%%1<1



9393404052)',6##,(&+(, ±#:<#±


#7DEOH#%%%1;#±#([DPSOH#RI#FRPSOHWHG#7DEOH#537

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#0RGHO#339#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU#WKH#XVHU#RI
WKH#0RGHO#339#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HQYLURQPHQW1


&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW #±# JXLGDQFH

3RUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW
VKRXOG#EH#XVHG#QR#FORVHU#WR#DQ\#SDUW#RI#WKH#0RGHO
339/#LQFOXGLQJ#FDEOHV/#WKDQ#WKH#UHFRPPHQGHG
VHSDUDWLRQ#GLVWDQFH#FDOFXODWHG#IURP#WKH#HTXDWLRQ
DSSOLFDEOH#WR#WKH#IUHTXHQF\#RI#WKH#WUDQVPLWWHU1


5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFH

&RQGXFWHG#5) 6#9UPV 6#9UPV G 4/5 3


,(&#943330709 483#N+]#WR#;3#0+]


5DGLDWHG#5) 6#92P 6#92P G 4/5 3 ##;3#0+]#WR#;33#0+]
,(&#943330706 ;3#0+]#WR#5/8#*+]
G 5/6 3 ## ;33#0+]#WR#5/8#*+]

ZKHUH#3#LV#WKH#PD[LPXP#RXWSXW#SRZHU#UDWLQJ#RI#WKH

WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU
PDQXIDFWXUHU#DQG#G#LV#WKH#UHFRPPHQGHG#VHSDUDWLRQ
GLVWDQFH#LQ#PHWUHV#+P,1
)LHOG#VWUHQJWKV#IURP#IL[HG#5)#WUDQVPLWWHUV/#DV#GHWHU0
PLQHG#E\#DQ#HOHFWURPDJQHWLF#VLWH#VXUYH\/ D #VKRXOG#EH
OHVV#WKDQ#WKH#FRPSOLDQFH#OHYHO#LQ#HDFK#IUHTXHQF\
UDQJH1 E


,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=


127(#4## $W#;3#0+]#DQG#;33#0+]/#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1
127(# 5## 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
D
)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG


PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH
VXUYH\# VKRXOG# EH# FRQVLGHUHG1# ,I# WKH# PHDVXUHG# ILHOG# VWUHQJWK# LQ# WKH# ORFDWLRQ# LQ# ZKLFK# WKH# 0RGHO# 339# LV# XVHG
H[FHHGV# WKH# DSSOLFDEOH# 5)# FRPSOLDQFH# OHYHO# DERYH/# WKH# 0RGHO# 339# VKRXOG# EH# REVHUYHG# WR# YHULI\# QRUPDO
RSHUDWLRQ1#,I#DEQRUPDO#SHUIRUPDQFH#LV#REVHUYHG/#DGGLWLRQDO#PHDVXUHV#PD\#EH# QHFHVVDU\/#VXFK#DV# UH0RULHQWLQJ# RU
UHORFDWLQJ#WKH#0RGHO#3391
E
# 2YHU#WKH#IUHTXHQF\#UDQJH#483#N+]#WR#;3#0+]/#ILHOG#VWUHQJWKV#VKRXOG#EH#OHVV#WKDQ#6#92P 1




±#;3#± 9393404052)',6##,(&+(,


7DEOH#%%%1<#±#([DPSOH#RI#FRPSOHWHG#7DEOH#539

5HFRPPHQGHG#VHSDUDWLRQ#GLVWDQFHV#EHWZHHQ
SRUWDEOH#DQG#PRELOH#5)#FRPPXQLFDWLRQV#HTXLSPHQW#DQG#WKH#0RGHO#339
7KH# 0RGHO# 339# LV# LQWHQGHG# IRU# XVH# LQ# DQ# HOHFWURPDJQHWLF# HQYLURQPHQW# LQ# ZKLFK# UDGLDWHG# 5)# GLVWXUEDQFHV# DUH
FRQWUROOHG1#7KH#FXVWRPHU#RU#WKH#XVHU#RI#WKH#0RGHO#339#FDQ#KHOS# SUHYHQW#HOHFWURPDJQHWLF#LQWHUIHUHQFH# E\# PDLQWDLQLQJ


D# PLQLPXP# GLVWDQFH# EHWZHHQ# SRUWDEOH# DQG# PRELOH# 5)# FRPPXQLFDWLRQV# HTXLSPHQW# +WUDQVPLWWHUV,# DQG# WKH# 0RGHO# 339
DV#UHFRPPHQGHG#EHORZ/#DFFRUGLQJ#WR#WKH#PD[LPXP#RXWSXW#SRZHU#RI#WKH#FRPPXQLFDWLRQV#HTXLSPHQW1
6HSDUDWLRQ#GLVWDQFH#DFFRUGLQJ#WR#IUHTXHQF\#RI#WUDQVPLWWHU
P
5DWHG#PD[LPXP#RXWSXW#SRZHU 483#N+]#WR#;3#0+] ;3#0+]#WR#;33#0+] ;33#0+]#WR#5/8#*+]
RI#WUDQVPLWWHU


: G 4/5 3 G 4/5 3 G 5/6 3
3/34 3/45 3/45 3/56
3/4 3/6; 3/6; 3/:6
4 4/5 4/5 5/6
43 6/; 6/; :/6


433 45 45 56
)RU# WUDQVPLWWHUV# UDWHG# DW# D# PD[LPXP# RXWSXW# SRZHU# QRW# OLVWHG# DERYH/# WKH# UHFRPPHQGHG# VHSDUDWLRQ# GLVWDQFH# G# LQ
PHWUHV#+P,# FDQ# EH# HVWLPDWHG# XVLQJ# WKH# HTXDWLRQ# DSSOLFDEOH# WR# WKH# IUHTXHQF\# RI# WKH# WUDQVPLWWHU/# ZKHUH# 3# LV# WKH
PD[LPXP#RXWSXW#SRZHU#UDWLQJ#RI#WKH#WUDQVPLWWHU#LQ#ZDWWV#+:,#DFFRUGLQJ#WR#WKH#WUDQVPLWWHU#PDQXIDFWXUHU1
127(#4## $W#;3#0+]#DQG#;33#0+]/#WKH#VHSDUDWLRQ#GLVWDQFH#IRU#WKH#KLJKHU#IUHTXHQF\#UDQJH#DSSOLHV1

127(#5## 7KHVH#JXLGHOLQHV#PD\#QRW#DSSO\#LQ#DOO#VLWXDWLRQV1#(OHFWURPDJQHWLF#SURSDJDWLRQ#LV#DIIHFWHG#E\#DEVRUSWLRQ#DQG
UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1

%%%1:#([DPSOH#FRPSOHWLRQ#RI#7DEOH#53:


7KLV# H[DPSOH# LV# D# K\SRWKHWLFDO# (48,30(17 # RU# 6<67(0# WKDW# LV# /,)( 0 6833257,1* # DQG# WKDW# LV
VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# ZLWK# D# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG
ILOWHU# DWWHQXDWLRQ# RI# 64# G%# RYHU# WKH# IUHTXHQF\# UDQJH# 483# N+]# WR# 5/8#*+]1# 7KXV/# 7DEOH#53:# LV
XVHG1# )RU# WKH# SXUSRVH# RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO# (48,30(17 # RU# 6<67(0# LV# D# SDUWLFXODU


PDQXIDFWXUHU¶V# 0RGHO# 33:/# DQG# WKH# UHTXLUHG# OLVW# RI# HTXLSPHQW# WKDW# LV# DOORZHG# RU# SURKLELWHG
LQVLGH#WKH#VKLHOGHG#ORFDWLRQ#ZLWK#WKH#0RGHO#33:#LV#IRXQG#RQ#SDJH#7;#RI#WKH#VHUYLFH#PDQXDO1

7KH# DFWXDO# ,0081,7<# /(9(/6 # DUH# EHORZ# WKH# ORZHVW# OHYHO# OLVWHG# LQ# WKH# EDVLF# (0&# ,0081,7<
VWDQGDUG>#WKHUHIRUH/#WKH# &203/,$1&(#/(9(/6# DUH#HTXDO#WR#WKH#DFWXDO# ,0081,7<#/(9(/6 /#DV#VKRZQ


LQ# 7DEOH# %%%1431# 7KHVH# YDOXHV# DUH# WKHQ# XVHG# WR# FRPSOHWH# 7DEOH# 53:/# DV# VKRZQ# LQ# 7DEOH
%%%1441

7DEOH#%%%143#±#([DPSOH#+5,#WHVW/# ,0081,7< #DQG# &203/,$1&(#/(9(/6

,(&#93934
, 0081,7< #WHVW
7(67#/(9(/
$FWXDO# ,0081,7<#/(9(/ & 203/,$1&(#/(9(/

&RQGXFWHG#5) 6#9UPV


,(&#943330709 483#N+]#WR#;3#0+] 3/6#9UPV 3/6#9UPV


RXWVLGH#,60#EDQGV
&RQGXFWHG#5) 43#9UPV
,(&#943330709 483#N+]#WR#;3#0+] 3/6#9UPV 3/6#9UPV


LQ#,60#EDQGV
5DGLDWHG#5) 43#92P
3/6#92P 3/6#92P
,(&#943330706 ;33#0+]#WR#5/8#*+]


9393404052)',6##,(&+(, ±#;4#±


7DEOH#%%%144#±#([DPSOH#RI#FRPSOHWHG#7DEOH#53:

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#0RGHO#33:#LV#VXLWDEOH#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU#WKH#XVHU#RI
WKH#0RGHO#339#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HOHFWURPDJQHWLF#HQYLURQPHQW1
&RPSOLDQFH


,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ± #JXLGDQFH

&RQGXFWHG#5) 6#9UPV 3/6#9UPV 7KH#0RGHO#33:#PXVW#EH#XVHG#RQO\#LQ#D#VKLHOGHG


ORFDWLRQ#ZLWK#D#PLQLPXP#5)#VKLHOGLQJ#HIIHFWLYHQHVV
,(&#943330709 483#N+]#WR#;3#0+] DQG/#IRU#HDFK#FDEOH#WKDW#HQWHUV#WKH#VKLHOGHG#ORFDWLRQ/
RXWVLGH#,60#EDQGV D D#PLQLPXP#5)#ILOWHU#DWWHQXDWLRQ#RI#64#G%#RYHU#WKH
IUHTXHQF\#UDQJH#483#N+]#WR#5/8#*+]1#6HH#SDJH#7;#RI


WKH#6HUYLFH#0DQXDO1
43#9UPV 3/6#9UPV
)LHOG#VWUHQJWKV#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#IURP
483#N+]#WR#;3#0+] IL[HG#5)#WUDQVPLWWHUV/#DV#GHWHUPLQHG#E\#DQ#HOHFWUR0
LQ#,60#EDQGV D PDJQHWLF#VLWH#VXUYH\/#VKRXOG#EH#OHVV#WKDQ#43#92P1 E
,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=
5DGLDWHG#5) 43#92P 3/6#92P


,(&#943330706 ;3#0+]#WR#5/8#*+]

127(# 4## 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ

DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1
127(# 5## ,W# LV# HVVHQWLDO# WKDW# WKH# DFWXDO# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# RI# WKH# VKLHOGHG# ORFDWLRQ# EH
YHULILHG#WR#DVVXUH#WKDW#WKH\#PHHW#WKH#PLQLPXP#VSHFLILFDWLRQ1
D
7KH# ,60# +LQGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO,# EDQGV# EHWZHHQ# 483# N+]# DQG# ;3# 0+]# DUH# 9/:98# 0+]# WR# 9/:<8# 0+]>
46/886#0+]#WR#46/89:#0+]>#59/<8:#0+]#WR#5:/5;6#0+]>#DQG#73/99#0+]#WR#73/:3#0+]1
E
)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG


PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH
VXUYH\#VKRXOG#EH#FRQVLGHUHG1#,I#WKH#PHDVXUHG#ILHOG#VWUHQJWK#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#LQ#ZKLFK#WKH#0RGHO#33:
LV# XVHG# H[FHHGV# 43# 92P/# REVHUYH# WKH# 0RGHO# 33:# WR# YHULI\# QRUPDO# RSHUDWLRQ1# ,I# DEQRUPDO# SHUIRUPDQFH# LV
REVHUYHG/#DGGLWLRQDO#PHDVXUHV#PD\#EH#QHFHVVDU\/#VXFK#DV#UHORFDWLQJ#WKH#PRGHO#33:#RU#XVLQJ#D#VKLHOGHG#ORFDWLRQ
ZLWK#D#KLJKHU#5)#VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ1







±#;5#± 9393404052)',6##,(&+(,


%%%1;## ([DPSOH#FRPSOHWLRQ#RI#7DEOH#53;

7KLV#H[DPSOH#LV#D#K\SRWKHWLFDO#PDJQHWLF#UHVRQDQFH#LPDJLQJ#+05,,# 6<67(0#WKDW#LV#VSHFLILHG#IRU
XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# ZLWK# D# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU
DWWHQXDWLRQ#RI#;3#G%#RYHU#WKH#IUHTXHQF\#UDQJH#43#0+]#WR#53#0+]/#433#G%#RYHU#WKH#IUHTXHQF\
UDQJH# 53# 0+]# WR# ;3# 0+]# DQG# ;3# G%# RYHU# WKH# IUHTXHQF\# UDQJH# ;3# 0+]# WR# 433# 0+]1# +$W
53#0+]# DQG# ;3# 0+]/# WKH# KLJKHU# IUHTXHQF\# UDQJH# DSSOLHV1,# 7KXV/# 7DEOH#53;# LV# XVHG1# )RU# WKH


SXUSRVH# RI# WKLV# H[DPSOH/# WKH# K\SRWKHWLFDO# 05,# 6<67(0# LV# D# SDUWLFXODU# PDQXIDFWXUHU¶V
0RGHO#336/#DQG#WKH#UHTXLUHG#OLVW#RI#HTXLSPHQW#WKDW#LV#DOORZHG#RU#SURKLELWHG#LQVLGH#WKH#VKLHOGHG
ORFDWLRQ#ZLWK#WKH#0RGHO#336#LV#IRXQG#RQ#SDJH#58#RI#WKH#VHUYLFH#PDQXDO1#+6HH#DOVR#%%%161,

6RPH# RI# WKH# DFWXDO# ,0081,7<# /(9(/6 # DUH# EHORZ# WKH# ORZHVW# OHYHO# OLVWHG# LQ# WKH# EDVLF# (0&
,0081,7< # VWDQGDUG># WKHUHIRUH/# WKRVH# &203/,$1&(# /(9(/6# DUH# HTXDO# WR# WKH# DFWXDO# ,0081,7<


/(9(/6 /# DV# VKRZQ# LQ# 7DEOH# %%%1451# 7KHVH# YDOXHV# DUH# WKHQ# XVHG# WR# FRPSOHWH# 7DEOH# 53;/# DV
VKRZQ#LQ#7DEOH#%%%1461

7DEOH#%%%145#±#([DPSOH#+6,#WHVW/# ,0081,7< #DQG# &203/,$1&(#/(9(/6

, 0081,7< #WHVW ,(&#93934# 7(67#/(9(/ $FWXDO# ,0081,7<#/(9(/ & 203/,$1&(#/(9(/


&RQGXFWHG#5) 6#9UPV
6#9UPV 6#9UPV
,(&#943330709 483#N+]#WR#43#0+]
&RQGXFWHG#5) 6#9UPV
3/6#P9UPV 3/6#P9UPV
,(&#943330709 43#0+]#WR#53#0+]

&RQGXFWHG#5) 6#9UPV
3/36#P9UPV 3/36#P9UPV
,(&#943330709 53#0+]#WR#;3#0+]
5DGLDWHG#5) 6#92P
3/6#P92P 3/6#P92P
,(&#943330706 ;3#0+]#WR#433#0+]


5DGLDWHG#5) 6#92P
6#92P 6#92P
,(&#943330706 433#0+]#WR#5/8#*+]







9393404052)',6##,(&+(, ±#;6#±


7DEOH#%%%146#±#([DPSOH#RI#FRPSOHWHG#7DEOH#53;

*XLGDQFH#DQG#PDQXIDFWXUHU¶V#GHFODUDWLRQ#±#HOHFWURPDJQHWLF#LPPXQLW\
7KH#0RGHO#336#05,#V\VWHP#LV#LQWHQGHG#IRU#XVH#LQ#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#VSHFLILHG#EHORZ1#7KH#FXVWRPHU#RU
WKH#XVHU#RI#WKH#0RGHO#336#05,#V\VWHP#VKRXOG#DVVXUH#WKDW#LW#LV#XVHG#LQ#VXFK#DQ#HOHFWURPDJQHWLF#HQYLURQPHQW1


&RPSOLDQFH
,PPXQLW\#WHVW ,(&#93934#WHVW#OHYHO
OHYHO (OHFWURPDJQHWLF#HQYLURQPHQW# ±# JXLGDQFH

&RQGXFWHG#5) 6#9UPV 6#9UPV 7KH#0RGHO#336#05,#V\VWHP#PXVW#EH#XVHG#RQO\#LQ#D


VKLHOGHG#ORFDWLRQ#ZLWK#D#PLQLPXP#5)#VKLHOGLQJ
,(&#943330709 483#N+]#WR#;3#0+] 483#N+]#WR HIIHFWLYHQHVV#DQG/#IRU#HDFK#FDEOH#WKDW#HQWHUV#WKH
43#0+] VKLHOGHG#ORFDWLRQ/#D#PLQLPXP#5)#ILOWHU#DWWHQXDWLRQ#RI
;3#G%#IURP#43#0+]#WR#53#0+]/#433#G%#IURP#53#0+]


WR#;3#0+]#DQG#;3#G%#IURP#;3#0+]#WR#433#0+]1#+7KH
3/6#P9UPV PLQLPXP#DW#53#0+]#LV#433#G%#DQG#WKH#PLQLPXP#DW
;3#0+]#LV#;3#G%1,#6HH#SDJH#58#RI#WKH#6HUYLFH
43#0+]#WR PDQXDO1
53#0+]
)LHOG#VWUHQJWKV#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#IURP
IL[HG#5)#WUDQVPLWWHUV/#DV#GHWHUPLQHG#E\#DQ
3/36#P9UPV HOHFWURPDJQHWLF#VLWH#VXUYH\/#VKRXOG#EH#OHVV#WKDQ
6#92P1 D


53#0+]#WR
;3#0+] ,QWHUIHUHQFH#PD\#RFFXU#LQ#WKH#YLFLQLW\#RI#HTXLSPHQW
PDUNHG#ZLWK#WKH#IROORZLQJ#V\PERO=

5DGLDWHG#5) 6#92P 3/6#P92P



,(&#943330706 ;3#0+]#WR#5/8#*+] ;3#0+]#WR
433#0+]

6#92P
433#0+]#WR
5/8#*+]


127(# 4## 7KHVH# JXLGHOLQHV# PD\# QRW# DSSO\# LQ# DOO# VLWXDWLRQV1# (OHFWURPDJQHWLF# SURSDJDWLRQ# LV# DIIHFWHG# E\# DEVRUSWLRQ
DQG#UHIOHFWLRQ#IURP#VWUXFWXUHV/#REMHFWV#DQG#SHRSOH1


127(# 5## ,W# LV# HVVHQWLDO# WKDW# WKH# DFWXDO# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# ILOWHU# DWWHQXDWLRQ# RI# WKH# VKLHOGHG# ORFDWLRQ# EH
YHULILHG#WR#DVVXUH#WKDW#WKH\#PHHW#WKH#PLQLPXP#VSHFLILFDWLRQ1
D
)LHOG# VWUHQJWKV# IURP# IL[HG# WUDQVPLWWHUV/# VXFK# DV# EDVH# VWDWLRQV# IRU# UDGLR# +FHOOXODU2FRUGOHVV,# WHOHSKRQHV# DQG# ODQG
PRELOH# UDGLRV/# DPDWHXU# UDGLR/# $0# DQG# )0# UDGLR# EURDGFDVW# DQG# 79# EURDGFDVW# FDQQRW# EH# SUHGLFWHG# WKHRUHWLFDOO\
ZLWK#DFFXUDF\1#7R# DVVHVV#WKH#HOHFWURPDJQHWLF#HQYLURQPHQW#GXH#WR#IL[HG#5)#WUDQVPLWWHUV/#DQ# HOHFWURPDJQHWLF# VLWH


VXUYH\#VKRXOG#EH#FRQVLGHUHG1#,I#WKH#PHDVXUHG#ILHOG#VWUHQJWK#RXWVLGH#WKH#VKLHOGHG#ORFDWLRQ#LQ#ZKLFK#WKH#0RGHO#336
05,#V\VWHP#LV#XVHG#H[FHHGV#6#92P/#WKH#0RGHO#336#05,#V\VWHP#VKRXOG#EH#REVHUYHG#WR#YHULI\#QRUPDO#RSHUDWLRQ1#,I
DEQRUPDO# SHUIRUPDQFH# LV# REVHUYHG/# DGGLWLRQDO# PHDVXUHV# PD\# EH# QHFHVVDU\/# VXFK# DV# UHORFDWLQJ# WKH# 0RGHO# 336
05,#V\VWHP#RU#XVLQJ#D#VKLHOGHG#ORFDWLRQ#ZLWK#D#KLJKHU#5)#VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ1




±#;7#± 9393404052)',6##,(&+(,


$QQH[#&&&
+LQIRUPDWLYH,
*XLGDQFH#LQ#FODVVLILFDWLRQ#DFFRUGLQJ#WR#&,635#44


&&&14## *HQHUDO

5XOHV# IRU# FODVVLILFDWLRQ# DQG# VHSDUDWLRQ# LQWR# JURXSV# RI# HTXLSPHQW# DUH# VSHFLILHG# LQ# &,635#441
7KH# SXUSRVH# RI# WKLV# DQQH[# LV# WR# SURYLGH# DGGLWLRQDO# JXLGDQFH# LQ# WKH# DVVLJQPHQW# RI# DQ
(48,30(17 #RU# 6<67(0 #WR#WKH#DSSURSULDWH#&,635#44#JURXS#DQG#FODVV1


$FFRUGLQJ#WR#&,635#44#+6XEFODXVH#714=#6HSDUDWLRQ#LQWR#JURXSV,= 63

±# *URXS#4# FRQWDLQV# DOO# ,60# HTXLSPHQW# LQ# ZKLFK# WKHUH# LV# LQWHQWLRQDOO\# JHQHUDWHG# RU# XVHG
FRQGXFWLYHO\# FRXSOHG# 5)# HQHUJ\# WKDW# LV# QHFHVVDU\# IRU# WKH# LQWHUQDO# IXQFWLRQLQJ# RI# WKH
HTXLSPHQW#LWVHOI1
±# *URXS#5#FRQWDLQV#DOO#,60#HTXLSPHQW#LQ#ZKLFK#5)#HQHUJ\#LV#LQWHQWLRQDOO\#JHQHUDWHG#RU#XVHG


LQ# WKH# IRUP# RI# HOHFWURPDJQHWLF# UDGLDWLRQ# IRU# WKH# WUHDWPHQW# RI# PDWHULDO/# DQG# VSDUN# HURVLRQ
HTXLSPHQW1

$FFRUGLQJ#WR#&,635#44#+6XEFODXVH#715/#'LYLVLRQ#LQWR#FODVVHV,= 64

±# &ODVV#$#HTXLSPHQW#LV#HTXLSPHQW#VXLWDEOH#IRU#XVH#LQ#DOO#HVWDEOLVKPHQWV#RWKHU#WKDQ#GRPHVWLF
DQG#WKRVH#GLUHFWO\#FRQQHFWHG#WR#WKH#SXEOLF#ORZ0YROWDJH#SRZHU#VXSSO\#QHWZRUN#WKDW#VXSSOLHV
EXLOGLQJV#XVHG#IRU#GRPHVWLF#SXUSRVHV1
127(## $OWKRXJK# FODVV#$# OLPLWV# KDYH# EHHQ# GHULYHG# IRU# LQGXVWULDO# DQG# FRPPHUFLDO# HVWDEOLVKPHQWV/# DGPLQLVWUDWLRQV
PD\#DOORZ/#ZLWK# ZKDWHYHU#DGGLWLRQDO#PHDVXUHV#DUH#QHFHVVDU\/#WKH#LQVWDOODWLRQ#DQG# XVH#RI#FODVV#$#,60#HTXLSPHQW#LQ
D#GRPHVWLF#HVWDEOLVKPHQW#RU#LQ#DQ#HVWDEOLVKPHQW#FRQQHFWHG#GLUHFWO\#WR#GRPHVWLF#HOHFWULFLW\#SRZHU#VXSSOLHV1 # 65


±# &ODVV#%#HTXLSPHQW#LV#HTXLSPHQW#VXLWDEOH#IRU#XVH#LQ#DOO#HVWDEOLVKPHQWV/#LQFOXGLQJ#GRPHVWLF
HVWDEOLVKPHQWV# DQG# WKRVH# GLUHFWO\# FRQQHFWHG# WR# WKH# SXEOLF# ORZ0YROWDJH# SRZHU# VXSSO\
QHWZRUN#WKDW#VXSSOLHV#EXLOGLQJV#XVHG#IRU#GRPHVWLF#SXUSRVHV1
$QQH[# $# RI# &,635# 44# JLYHV# H[DPSOHV# RI# HTXLSPHQW# FODVVLILFDWLRQ1# %0HGLFDO# HTXLSPHQW%# LV
OLVWHG# DV# DQ# H[DPSOH# RI# *URXS#4# HTXLSPHQW/# ZKHUHDV# %PHGLFDO# DSSDUDWXV%# LV# OLVWHG# DV# DQ


H[DPSOH# RI# *URXS#5# HTXLSPHQW1# 2QO\# VKRUW# ZDYH# DQG# PLFURZDYH# WKHUDS\# HTXLSPHQW# LV
PHQWLRQHG#H[SOLFLWO\1#1R#RWKHU#W\SH#RI# (48,30(17 #RU# 6<67(0#LV#PHQWLRQHG1

&&&15## 6HSDUDWLRQ#LQWR#JURXSV


0RVW# W\SHV# RI# (48,30(17 # DQG# 6<67(06 # JHQHUDWH# RU# XVH# 5)# HQHUJ\# RQO\# IRU# WKHLU# LQWHUQDO
IXQFWLRQLQJ#DQG#WKHUHIRUH#EHORQJ#WR#*URXS#41

([DPSOHV#RI#*URXS#4# (48,30(17# DQG# 6<67(06 #DUH#DV#IROORZV=

−# (OHFWUR0#DQG#PDJQHWR0FDUGLRJUDSK\# (48,30(17# DQG# 6<67(06


−# (OHFWUR0#DQG#PDJQHWR0HQFHSKDORJUDSK\# (48,30(17# DQG# 6<67(06
−# (OHFWUR0#DQG#PDJQHWR0P\RJUDSK\# (48,30(17# DQG# 6<67(06


*URXS#4# DOVR#LQFOXGHV# (48,30(17# DQG# 6<67(06 # LQWHQGHG#WR# GHOLYHU#HQHUJ\# WR# WKH# 3$7,(17 /# EXW
LQ#D#IRUP#WKDW#LV#RWKHU#WKDQ#5)#HOHFWURPDJQHWLF1#([DPSOHV#DUH#DV#IROORZV=


BBBBBBBBBBB
63# 6HH#&,635#44=#4<<:1


64# 6HH#&,635#44=#4<<:1

65# 1RWH#5#IURP#715#RI#&,635#44=#4<<:1

9393404052)',6##,(&+(, ±#;8#±


−# 0HGLFDO#LPDJLQJ# (48,30(17# DQG# 6<67(06 =
•# GLDJQRVWLF# ;0UD\# V\VWHPV# IRU# UDGLRJUDSK\# DQG# IOXRURVFRS\# +LQFOXGLQJ# FLQHIOXRURVFRS\,
IRU# JHQHUDO# SXUSRVH# EXW# DOVR# IRU# VSHFLDO# SXUSRVHV/# H1J1# DQJLRJUDSK\/# PDPPRJUDSK\/
WKHUDS\#SODQQLQJ/#GHQWLVWU\
•# FRPSXWHG#WRPRJUDSK\# 6<67(06
6<67(06 #IRU#QXFOHDU#PHGLFLQH


•#
•# GLDJQRVWLF#XOWUDVRXQG# (48,30(17
−# 7KHUDS\# (48,30(17 #DQG# 6<67(06 =
•# WKHUDSHXWLF#;0UD\# 6<67(06
•# GHQWDO# (48,30(17


•# HOHFWURQ#EHDP#DFFHOHUDWRUV
•# XOWUDVRXQG# (48,30(17 #IRU#WKHUDS\
•# (48,30(17 #IRU#H[WUDFRUSRUHDO#OLWKRWULSV\
•# LQIXVLRQ#SXPSV
•# UDGLDQW#ZDUPHUV


•# LQIDQW#LQFXEDWRUV
•# YHQWLODWRUV
± 0RQLWRULQJ# (48,30(17# DQG# 6<67(06 =
•# LPSHGDQFH#SOHWK\VPRJUDSK\#PRQLWRUV

•# SXOVH#R[LPHWHUV

2QO\#D#IHZ# (48,30(17# DQG# 6<67(06 #DSSO\#5)#HQHUJ\#WR#PDWHULDO#+LQ#WKLV#FDVH#WR# 3$7,(176 ,#DQG


DUH#WKHUHIRUH#PHPEHUV#RI#*URXS#51

([DPSOHV#DUH#DV#IROORZV=


± 0HGLFDO#LPDJLQJ# (48,30(17 =
•# 6<67(06 #IRU#PDJQHWLF#UHVRQDQFH#LPDJLQJ

± 7KHUDS\# (48,30(17 =
•# GLDWKHUP\# (48,30(17 #+VKRUW#ZDYH/#XOWUD0VKRUW#ZDYH/#PLFURZDYH#WKHUDS\# (48,30(17 ,


•# K\SHUWKHUP\# (48,30(17

$GGLWLRQDOO\/# KLJK# IUHTXHQF\# VXUJLFDO# (48,30(17# DQG# 6<67(06 /# ZKHQ# DFWLYH/# VKRXOG# EH
FODVVLILHG#DV#*URXS#5#HTXLSPHQW#+VLPLODU#WR#VSDUN#HURVLRQ#HTXLSPHQW,/#EHFDXVH#WKH\#DSSO\#5)


HQHUJ\#WR#WKH# 3$7,(17 1

&&&16## 'LYLVLRQ#LQWR#FODVVHV

( 48,30(17# DQG# 6<67(06 # SUHGRPLQDQWO\# LQWHQGHG# IRU# XVH# LQ# GRPHVWLF# HQYLURQPHQWV# DQG
FRQQHFWHG# WR# WKH# 38%/,&# 0$,16# 1(7:25.# +H1J1# KRPH# FDUH# (48,30(17 # DQG# (48,30(17 # IRU
GRFWRUV#RIILFHV#LQ#UHVLGHQWLDO#DUHDV,#VKRXOG#PHHW#WKH#UHTXLUHPHQWV#IRU#&,635#44#&ODVV#%1

( 48,30(17# DQG# 6<67(06 # WKDW# DUH# LQWHQGHG# WR# EH# FRQQHFWHG# +H1J1# LQ# KRVSLWDOV,# WR# GHGLFDWHG


VXSSO\# V\VWHPV# +QRUPDOO\# IHG# E\# VHSDUDWLRQ# WUDQVIRUPHUV,# VKRXOG# PHHW# WKH# UHTXLUHPHQWV# IRU
HLWKHU#&,635#44#&ODVV#$#RU#&ODVV#%1

( 48,30(17# DQG# 6<67(06 # WKDW# DUH# VSHFLILHG# IRU# XVH# RQO\# LQ# D# VKLHOGHG# ORFDWLRQ# PD\# EH
FODVVLILHG# EDVHG# RQ# FRPSOLDQFH# RI# WKH# V\VWHP# IRUPHG# E\# WKH# (48,30(17# RU# 6<67(0# WRJHWKHU


ZLWK# WKH# VSHFLILHG# W\SH# RI# VKLHOGHG# ORFDWLRQ/# L1H1# ZLWK# WKH# DVVXPSWLRQ# WKDW# WKH# (48,30(17# RU
6<67(0 # KDV# EHHQ# LQVWDOOHG# LQ# D# VKLHOGHG# ORFDWLRQ# PHHWLQJ# WKH# (48,30(17# RU# 6<67(0
PDQXIDFWXUHU¶V# VSHFLILFDWLRQV# IRU# PLQLPXP# 5)# VKLHOGLQJ# HIIHFWLYHQHVV# DQG# PLQLPXP# 5)# ILOWHU
DWWHQXDWLRQ1# ,I# FODVVLILFDWLRQ# LV# PDGH# RQ# WKLV# EDVLV/# 91;161534#F,#5,# RI# WKLV# VWDQGDUG# UHTXLUHV# D
VWDWHPHQW#RI#WKLV#IDFW#WR#DSSHDU#LQ#7DEOH#534/#DV#ZHOO#DV#D#UHFRPPHQGDWLRQ#WR#YHULI\#WKH#DFWXDO


VKLHOGLQJ#HIIHFWLYHQHVV#DQG#ILOWHU#DWWHQXDWLRQ#RI#WKH#VKLHOGHG#ORFDWLRQ1

±#;9#± 9393404052)',6##,(&+(,


$QQH[#'''
+LQIRUPDWLYH,

*XLGDQFH#LQ#WKH#DSSOLFDWLRQ#RI#,(&#939340405
WR#3DUWLFXODU#6WDQGDUGV


'''14## *HQHUDO

7KLV#DQQH[#FRQWDLQV#UHFRPPHQGDWLRQV#WR#VWDQGDUGV#FRPPLWWHHV#ZULWLQJ#(0&#UHTXLUHPHQWV#IRU
3DUWLFXODU# 6WDQGDUGV# +,(&# 93934050;# +³3DUW# WZR´,# VWDQGDUGV# DQG# ,62# VWDQGDUGV# EDVHG# RQ
,(&#9393404,# WR# KHOS# HQVXUH# FRQVLVWHQF\# LQ# WKH# DSSOLFDWLRQ# RI# ,(&#9393404051# 6XFK
FRPPLWWHHV#DUH#HQFRXUDJHG#WR#FRQWDFW#6&#95$#ZLWK#TXHVWLRQV#WKDW#DULVH#LQ#GRLQJ#VR1


7KLV# DQQH[# LGHQWLILHV# WKH# SURYLVLRQV# RI# ,(&# 939340405# WKDW# VKRXOG# EH# PRGLILHG# ZKHQ# WKLV
VWDQGDUG# LV# DSSOLHG# WR# 3DUWLFXODU# 6WDQGDUGV# DQG# SURYLGHV# JXLGDQFH# LQ# GRLQJ# VR1# ,W# DOVR
LGHQWLILHV# WKH# SURYLVLRQV# WKDW# VKRXOG# QRW# EH# PRGLILHG1# ,Q# DGGLWLRQ# WR# WKLV# DQQH[/# WKH# UDWLRQDOHV
LQ# $QQH[# $$$# VKRXOG# EH# FRQVXOWHG# IRU# DGGLWLRQDO# LQIRUPDWLRQ# DQG# JXLGDQFH# LQ# WKH# DSSOLFDWLRQ
RI#WKLV#VWDQGDUG1


'''15## 5HFRPPHQGHG#PRGLILFDWLRQV

:ULWHUV# RI# 3DUWLFXODU# 6WDQGDUGV# DUH# HQFRXUDJHG# WR# PDNH# PRGLILFDWLRQV# RU# DGG# DGGLWLRQDO
LQIRUPDWLRQ#RU#FODULILFDWLRQ#DV#IROORZV=

D, 'HOHWH#WKH#ODVW#VHQWHQFH#RI#69153514#D,1#,I#WKH#SDUWLFXODU# (48,30(17 #RU# 6<67(0# FDQQRW#PHHW
WKH# ,0081,7<# 7(67# /(9(/6 # VSHFLILHG# LQ# 691535/# WKH# 3DUWLFXODU# 6WDQGDUG# VKRXOG# VSHFLI\# WKH
PLQLPXP# &203/,$1&(# /(9(/ # DOORZHG# IRU# HDFK# WHVW# DQG# SURYLGH# MXVWLILFDWLRQ# EDVHG# XSRQ
SK\VLFDO/#WHFKQRORJLFDO#RU#SK\VLRORJLFDO#OLPLWDWLRQV1# 2QFH# D#ORZHU# ,0081,7<# 7(67# /(9(/ #KDV
EHHQ# VHW# DQG# MXVWLILHG# LQ# D# SDUWLFXODU# VWDQGDUG/# WKH# DOORZDQFH# IRU# HYHQ# ORZHU# &203/,$1&(
/(9(/6 # +WKH# ODVW# VHQWHQFH# RI# 69153514#D,,# VKRXOG# WKHQ# EH# H[SOLFLWO\# GLVDOORZHG# E\# WKH


3DUWLFXODU#6WDQGDUG1
E, 0DNH# PRGLILFDWLRQV# WR# 69153514# F,/# I,/# J,# DQG# K,# WR# EH# PRUH# VSHFLILF# IRU# WKH# SDUWLFXODU
(48,30(17 #RU# 6<67(0 /#ZKLOH#PDLQWDLQLQJ#WKH#LQWHQW#RI#WKLV#VWDQGDUG1

F, 0DNH# PRGLILFDWLRQV# WR# RU# VXSSOHPHQW# 69153514# M,# WR# SURYLGH# VSHFLILF# SHUIRUPDQFH# FULWHULD
IRU#WKH#SDUWLFXODU# (48,30(17 #RU# 6<67(0# WKDW#IROORZ#WKH#LQWHQW#RI#WKDW#VXEFODXVH1


G, ,I# VHOHFWLRQ# RI# RQH# RU# WZR# RI# WKH# IROORZLQJ# IRXU# SRVVLELOLWLHV# IRU# WKH# DSSOLFDELOLW\# RI# 7DEOHV
536# WKURXJK# 53;# FDQ# EH# PDGH# IRU# D# 3DUWLFXODU# 6WDQGDUG/# WKLV# PD\# EH# VSHFLILHG# LQ
91;161534=
−# 7DEOHV#536#DQG#538# DSSO\# +L1H1#WKH# SDUWLFXODU# (48,30(17 #RU# 6<67(0# LV# /,)( 0 6833257,1*


DQG#QRW#VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ,>
−# 7DEOHV# 537# DQG# 539# DSSO\# +L1H1# WKH# SDUWLFXODU# (48,30(17 # RU# 6<67(0# LV# QRW# /,)( 0
6833257,1* #DQG#QRW#VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ,>

−# 7DEOH# 53:# DSSOLHV# +L1H1# WKH# SDUWLFXODU# (48,30(17 # RU# 6<67(0# LV# /,)( 0 6833257,1*# DQG# LV
VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ,>
−# 7DEOH#53;# DSSOLHV#+L1H1# WKH# SDUWLFXODU# (48,30(17 # RU# 6<67(0# LV# QRW# /,)( 0 6833257,1*# DQG


LV#VSHFLILHG#IRU#XVH#RQO\#LQ#D#VKLHOGHG#ORFDWLRQ,1
H, 7KH# ,0081,7<# 7(67# /(9(/6 # LQ# FROXPQ# 5# RI# 7DEOHV# 535# WKURXJK# 53;# PD\# EH# PRGLILHG# DV
VSHFLILHG#LQ#'''15#D,#DERYH/#'''17#EHORZ#DQG#91;1615341#,I#PRGLILFDWLRQV#DUH#PDGH#WR#WKH
,0081,7<# 7(67# /(9(/6 /# WKH# GHVFULSWLRQV# RI# WKH# VXLWDEOH# (/(&7520$*1(7,&# (19,5210(17 # LQ
FROXPQ#7#VKRXOG#EH#PRGLILHG#DFFRUGLQJO\1


I, )RU# /,)( 0 6833257,1*#(48,30(17# DQG# 6<67(06 #IRU#ZKLFK#DQ#DODUP#LV#UHTXLUHG#LQ#DFFRUGDQFH


ZLWK# 6915351:# D,# 5/# LW# LV# OLNHO\# WKDW# WKH# DODUP# ZLOO# QHHG# WR# EH# SRZHUHG# E\# VWRUHG# HQHUJ\
GXULQJ#SRZHU#LQWHUUXSWLRQV1#7R#DVVXUH#VDIHW\#RI#WKH# /,)( 0 6833257,1*#(48,30(17# RU# 6<67(0/
LW#PD\#EH#QHFHVVDU\#WR#DGG#D#UHTXLUHPHQW#DQG#D#WHVW#WR#YHULI\#WKDW#VXIILFLHQW#VWRUHG#HQHUJ\


LV#DYDLODEOH#WR#RSHUDWH#WKLV#DODUP#IRU#DQ#H[WHQGHG#SHULRG#RI#WLPH/#H1J1#8#PLQXWHV1

9393404052)',6##,(&+(, ±#;:#±


'''16## &DXWLRQV

:ULWHUV#RI#3DUWLFXODU# 6WDQGDUGV#DUH#FDXWLRQHG# DJDLQVW#PDNLQJ# RWKHU#PRGLILFDWLRQV/# SDUWLFXODUO\


WKRVH#OLVWHG#EHORZ1

D, 7KH# )RUHZRUG/# ,QWURGXFWLRQ/# &ODXVH# 4# DQG# &ODXVH# 5# VKRXOG# QRW# EH# PRGLILHG1# 7DEOHV# 534
DQG#535#VKRXOG#QRW#EH#GHOHWHG1#2WKHU#WKDQ#WKH#PRGLILFDWLRQV#GHVFULEHG#LQ#'''15#G,#DQG#H,


DERYH#DQG#'''16#E,#EHORZ/#QR#RWKHU#FKDQJHV#VKRXOG#EH#PDGH#WR#7DEOHV#534#WKURXJK#53;1
7DEOHV#534#WKURXJK#53;#SURYLGH#WKH#FXVWRPHU#RU#XVHU#ZLWK#HVVHQWLDO#LQIRUPDWLRQ#DERXW#WKH
VXLWDEOH# HOHFWURPDJQHWLF# XVH# HQYLURQPHQW# LQ# D# IRUPDW# FRPPRQ# WR# DOO# (48,30(17 # DQG
6<67(06 1

E, 6XEFODXVH# 691534# VKRXOG# QRW# EH# PRGLILHG/# H[FHSW# IRU# VSHFLILFDWLRQ# RI# *URXS# 4# RU# 5
FODVVLILFDWLRQ/# XVLQJ# WKH# JXLGDQFH# LQ# $QQH[# &&&/# DQG# FODVVLILFDWLRQ# WR# &ODVV# %/# LI# WKH


VSHFLILF# (48,30(17 #DQG# 6<67(06 #VKRXOG#RQO\#EH#FODVVLILHG#DV#&ODVV#%1#7KHVH#FKDQJHV#PD\
EH#LQGLFDWHG#LQ#91;161534#D,#6,#RU#LQ#7DEOH#5341#3DUWLFXODU#6WDQGDUGV#DUH#QRW#IUHH#WR#PRGLI\
WKH# (0,66,216 #UHTXLUHPHQWV# RU# WHVW#PHWKRGV#VSHFLILHG# LQ# &,635#44# ZLWKRXW# WKH# FRQVHQW# RI
&,635#6XEFRPPLWWHH#%1
F, 6XEFODXVHV# 69153516# E,# 6,# DQG# 69153519# E,# 9,# VKRXOG# QRW# EH# PRGLILHG1# 7KH# PRGXODWLRQ


IUHTXHQFLHV# FKRVHQ# DUH# DGHTXDWH# DV# LV1# ,I# 3DUWLFXODU# 6WDQGDUGV# PRGLI\# WKH# PRGXODWLRQ
IUHTXHQFLHV/# DGGLWLRQDO# WHVWLQJ# ZRXOG# EH# UHTXLUHG# IRU# 6<67(06 # WKDW# XVH# WKH# (48,30(17 /# DV
WKH# 6<67(0 #ZRXOG#WKHQ#QHHG#WR#EH#WHVWHG#RYHU#WKH#HQWLUH#IUHTXHQF\#UDQJH#DW#HDFK#GLIIHUHQW
PRGXODWLRQ# IUHTXHQF\# VSHFLILHG# LQ# HDFK# DSSOLFDEOH# 3DUWLFXODU# 6WDQGDUG/# DV# ZHOO# DV# DW# WKH
PRGXODWLRQ#IUHTXHQF\#VSHFLILHG#LQ#WKLV#+JHQHUDO,#&ROODWHUDO#6WDQGDUG1

G, 6XEFODXVHV#69153516#E,#7,#DQG#8,#DQG#69153519#E,#:,#DQG#;,#VKRXOG#QRW#EH#PRGLILHG1
H, 6XEFODXVHV# 69153514#H,/# 69153517#E,#6,# DQG# 69153519#E,#6,# VKRXOG# QRW# EH# PRGLILHG1# 7KH
3$7,(17 # FDEOHV# DUH# WUHDWHG# GLIIHUHQWO\# LQ# GLIIHUHQW# WHVWV1# 7KH# GHIDXOW# WHUPLQDWLRQ
UHTXLUHPHQWV# VSHFLI\# WKDW# QR# LQWHQWLRQDO# FRQGXFWLYH# RU# FDSDFLWLYH# FRQQHFWLRQ# EH# PDGH# WR
JURXQG# EHFDXVH# HLWKHU# WKH# WHUPLQDWLRQ# LV# QRW# FRQVLGHUHG# UHOHYDQW# +L1H1# LQ# WKH# VXUJH
,0081,7< # WHVW,# RU# WKH# SURKLELWHG# WHUPLQDWLRQ# LV# FRQVLGHUHG# OHVV# VWULQJHQW# +L1H1# LQ# WKH# (6'


DQG# UDGLDWHG# 5)# WHVWV,1# ,Q# VSHFLILF# WHVWV/# WKH# DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# IURP
&,635#4904# KDYH# EHHQ# VSHFLILHG# EHFDXVH# IRU# WKHVH# WHVWV/# LW# LV# HLWKHU# QHFHVVDU\# IRU# WKH
DUWLILFLDO#KDQG#DQG#5&#HOHPHQW#WR#EH#LQ#SODFH#WR#SURSHUO\#SHUIRUP#WKH#WHVW#RU#WKH#XVH#RI#WKH
DUWLILFLDO# KDQG# DQG# 5&# HOHPHQW# ZDV# FRQVLGHUHG# WR# EH# WKH# ZRUVW# FDVH1# ,(&#9393404# WUHDWV
WKH# FRQGLWLRQV# LQ# ZKLFK# WKH# 3$7,(17 # LV# IORDWLQJ# DQG# LQ# ZKLFK# WKH# 3$7,(17 # LV# JURXQGHG# DV
1250$/# &21',7,216 1# +RZHYHU/# IURP# D# 5)# SHUVSHFWLYH/# LW# LV# XQOLNHO\# WKDW# D# 3$7,(17 # LQ# D


PHGLFDO# HQYLURQPHQW# ZRXOG# HYHU# EH# DV# HIIHFWLYHO\# JURXQGHG# DV# LQ# DQ# (0&# WHVW
HQYLURQPHQW#LQ#ZKLFK#D#GLUHFW#JURXQG#UHIHUHQFH#LV#XVHG1#$V#D#UHVXOW/#WKH#DUWLILFLDO#KDQG#DQG
5&# HOHPHQW# VSHFLILHG# LQ# &,635# 4904# DUH# XVHG# WR# UHSUHVHQW# WKH# JURXQGHG# FRQGLWLRQ1# 7KH
WUHDWPHQW# RI# 3$7,(17 # FDEOHV# LQ# WKLV# VWDQGDUG# KDV# EHHQ# FKRVHQ# WR# UHSUHVHQW# D# FRQGLWLRQ# RI


XVH#WKDW#LV#ZRUVW#FDVH#IRU#HDFK# ,0081,7< #WHVW1


I, 6XEFODXVH# 69153516# E,# 9# VKRXOG# QRW# EH# PRGLILHG1# 7KH# LQWURGXFWLRQ# RI# PHWDOOLF# REMHFWV# LQWR
WKH# WHVW# DUHD# ZLOO# GLVWRUW# WKH# XQLIRUP# ILHOG# DQG# LQFUHDVH# WHVWLQJ# XQFHUWDLQW\1# 7KH# XVH# RI# D
PHWDO#SODWH#WR#UHSUHVHQW#D# 3$7,(17 #LV#GLVFRXUDJHG1

'''17## $GGLWLRQDO#UHFRPPHQGDWLRQV

D, ,I# WKH# H[SHFWHG# HOHFWURPDJQHWLF# FKDUDFWHULVWLFV# RI# WKH# LQWHQGHG# XVH# HQYLURQPHQW# MXVWLI\


VSHFLILFDWLRQ#RI#KLJKHU# ,0081,7<#7(67#/(9(/6 /#WKH#SDUWLFXODU#FRPSOLDQFH#FULWHULD#VSHFLILHG#DW


WKH#KLJKHU#OHYHOV#VKRXOG#IROORZ#WKH#LQWHQW#RI#69153514#M,#RI#WKLV#VWDQGDUG1
E, ,I#DGGLWLRQDO#DVVXUDQFH#RI#VDIHW\#LV#QHHGHG/#D#VHFRQG#VHW# RI# ,0081,7<# 7(67# /(9(/6 #PD\# EH
VSHFLILHG# IRU# VDIHW\0RQO\# FRPSOLDQFH# FULWHULD# +H1J1# VSHFLILF# W\SHV# RI# VDIH# IDLOXUHV# DOORZHG/
(66(17,$/# 3(5)250$1&(# QRW# UHTXLUHG,1# $Q\# FULWHULD# VSHFLILHG# IRU# VDIHW\# RQO\# VKRXOG


VXSSOHPHQW/# UDWKHU# WKDQ# UHSODFH/# SDUWLFXODU# FRPSOLDQFH# FULWHULD# WKDW# IROORZ# WKH# LQWHQW# RI
69153514# M,# RI# WKLV# VWDQGDUG1# , 0081,7<# 7(67# /(9(/6 # DSSOLFDEOH# WR# DQ\# VDIHW\0RQO\
FRPSOLDQFH# FULWHULD# VKRXOG# EH# VLJQLILFDQWO\# KLJKHU# WKDQ# WKRVH# DSSOLFDEOH# WR# FRPSOLDQFH
FULWHULD#WKDW#IROORZ#WKH#LQWHQW#RI#69153514#M,#RI#WKLV#VWDQGDUG1


127(## ,(&#943330405# UHFRPPHQGV# VHWWLQJ/# IRU# VDIHW\0FULWLFDO# HTXLSPHQW/# WZR# VHWV# RI# WHVW# OHYHOV# DQG# FULWHULD=# RQH
IRU# IXQFWLRQDO# SHUIRUPDQFH# DQG# DQRWKHU/# DW# KLJKHU# WHVW# OHYHOV/# IRU# VDIHW\1# 7KLV# HGLWLRQ# RI# ,(&#939340405# VSHFLILHV
,0081,7<#7(67#/(9(/6 #DQG#FULWHULD#IRU#ERWK#VDIHW\#DQG# (66(17,$/#3(5)250$1&( 1

±#;;#± 9393404052)',6##,(&+(,


F, $V# DQ# DOWHUQDWLYH# WR# VSHFLI\LQJ# VDIHW\0RQO\# FRPSOLDQFH# FULWHULD# DW# D# KLJKHU# ,0081,7<# 7(67
/(9(/ /#DGGLWLRQDO#DVVXUDQFH#RI#VDIHW\#FDQ#EH#DFKLHYHG#E\#VSHFLI\LQJ#SDUWLFXODU#FRPSOLDQFH
FULWHULD/#IROORZLQJ#WKH#LQWHQW#RI#69153514#M,/#WKDW#VKDOO#EH#PHW#DW#KLJKHU# ,0081,7<#7(67#/(9(/6
WKDQ# WKH# ,(&# 93934# 7(67# /(9(/6# VSHFLILHG# LQ# 691535# RI# WKLV# VWDQGDUG1# 7KLV# KDV# WKH
DGYDQWDJH# WKDW# LW# UHGXFHV# E\# KDOI# WKH# DPRXQW# RI# WHVWLQJ# WKDW# ZRXOG# EH# UHTXLUHG# E\
SHUIRUPLQJ# DQ# (66(17,$/# 3(5)250$1&(# WHVW# DW# WKH# ,(&# 93934# 7(67# /(9(/# RI# WKLV# VWDQGDUG
DQG# WKHQ# D# VDIHW\0RQO\# WHVW# DW# D# KLJKHU# ,0081,7<# 7(67# /(9(/ 1# +RZHYHU/# VLPLODU# WR# WKH


UHFRPPHQGDWLRQ# LQ# E,# DERYH/# WKLV# KLJKHU# ,0081,7<# 7(67# /(9(/ # VKRXOG# EH# VLJQLILFDQWO\
KLJKHU#WKDQ#WKH#,(&#93934# 7(67#/(9(/ #RI#WKLV#VWDQGDUG1












9393404052)',6##,(&+(, ±#;<#±


$QQH[#(((
+LQIRUPDWLYH,

( /(&7520$*1(7,&#(19,5210(176


$OWKRXJK# 7DEOHV# 535# WKURXJK# 53;# DUH# YDOLG# IRU# D# W\SLFDO# KHDOWK# FDUH# HQYLURQPHQW# IRU
(48,30(17 # DQG# 6<67(06 /# LW# ZRXOG# EH# XVHIXO# WR# GHVFULEH# HQYLURQPHQWV# RWKHU# WKDQ# ³W\SLFDO
KHDOWK# FDUH´# VR# WKDW# (48,30(17 # DQG# 6<67(06 # FRXOG# EH# VSHFLILHG# IRU# XVH# LQ# WKHVH# RWKHU
HQYLURQPHQWV1

([DPSOHV#RI# (/(&7520$*1(7,&#(19,5210(176 #DUH#JLYHQ#LQ#7DEOH#(((141


7DEOH#(((14# ±# ( /(&7520$*1(7,&#(19,5210(176
(QYLURQPHQW /RFDWLRQV *HQHUDO#FKDUDFWHULVWLFV
3DUWO\#FRQWUROOHG/#FRYHUHG#E\#WKH


7\SLFDO#KHDOWK#FDUH +RVSLWDO/#ODUJH#FOLQLF/#GRFWRU¶V#RIILFH JHQHUDO#UHTXLUHPHQWV#RI#WKLV
VWDQGDUG
1RW#FRQWUROOHG/#KHDOWK#FDUH
5HVLGHQWLDO 'RFWRU¶V#RIILFH/#VPDOO#FOLQLF
SURIHVVLRQDO#SUHVHQW
1RW#FRQWUROOHG/#KHDOWK#FDUH

5HVLGHQWLDO +RPH
SURIHVVLRQDO#QRW#QRUPDOO\#SUHVHQW
1RW#FRQWUROOHG/#ZLGH#YDULDWLRQV/
&DU/#DLUFUDIW#+IL[HG#ZLQJ#DQG FULWLFDO#UHFHLYHUV#QHDUE\/#KDUVK
7UDQVSRUW/#PRELOH
KHOLFRSWHU,/#DPEXODQFH HQYLURQPHQWV#IRU#(6'/#5)/#HOHFWULF
DQG#PDJQHWLF#ILHOGV
&DVH0E\0FDVH#H[DPLQDWLRQ#RI
6SHFLDO 2SHUDWLQJ#WKHDWUH/#HPHUJHQF\#URRP


HQYLURQPHQW1

2QFH#VXIILFLHQW#LQIRUPDWLRQ# RQ#WKH# HOHFWURPDJQHWLF#FKDUDFWHULVWLFV# RI# D# SDUWLFXODU#HQYLURQPHQW


KDV#EHHQ#FROOHFWHG/#VSHFLILF# ,0081,7< #UHTXLUHPHQWV#PD\#EH#SURSRVHG1







±#<3#± 9393404052)',6##,(&+(,


$QQH[#)))
+QRUPDWLYH,

1RUPDWLYH#UHIHUHQFHV


7KH# IROORZLQJ# QRUPDWLYH# GRFXPHQWV# FRQWDLQ# SURYLVLRQV# ZKLFK/# WKURXJK# UHIHUHQFH# LQ# WKLV# WH[W/
FRQVWLWXWH# SURYLVLRQV# RI# WKLV# ,QWHUQDWLRQDO# 6WDQGDUG1# )RU# GDWHG# UHIHUHQFHV/# VXEVHTXHQW
DPHQGPHQWV# WR/# RU# UHYLVLRQV# RI/# DQ\# RI# WKHVH# SXEOLFDWLRQV# GR# QRW# DSSO\1# +RZHYHU/# SDUWLHV# WR
DJUHHPHQWV#EDVHG#RQ#WKLV#,QWHUQDWLRQDO#6WDQGDUG#DUH#HQFRXUDJHG#WR#LQYHVWLJDWH#WKH#SRVVLELOLW\
RI#DSSO\LQJ#WKH#PRVW#UHFHQW#HGLWLRQV#RI#WKH#QRUPDWLYH#GRFXPHQWV#LQGLFDWHG#EHORZ1#)RU#XQGDWHG
UHIHUHQFHV/# WKH# ODWHVW# HGLWLRQ# RI# WKH# QRUPDWLYH# GRFXPHQW# UHIHUUHG# WR# DSSOLHV1# 0HPEHUV# RI# ,(&


DQG#,62#PDLQWDLQ#UHJLVWHUV#RI#FXUUHQWO\#YDOLG#,QWHUQDWLRQDO#6WDQGDUGV1

,(&# 93383+494,=4<<3/# ,QWHUQDWLRQDO# (OHFWURWHFKQLFDO# 9RFDEXODU\# +,(9,# ±# &KDSWHU# 494=


(OHFWURPDJQHWLF#FRPSDWLELOLW\
$PHQGPHQW#4#+4<<:,


$PHQGPHQW#5#+4<<;,

,(&#9374:05=4<<;/#*UDSKLFDO#V\PEROV#IRU#XVH#RQ#HTXLSPHQW#±#3DUW#5=#6\PERO#RULJLQDOV

,(&# 9393404=4<;;/# 0HGLFDO# HOHFWULFDO# HTXLSPHQW# ±# 3DUW# 4=# *HQHUDO# UHTXLUHPHQWV# IRU# VDIHW\
$PHQGPHQW#4#+4<<4,

$PHQGPHQW#5#+4<<8,

,(&#939340404=5333/#0HGLFDO#HOHFWULFDO#HTXLSPHQW#±#3DUW#4=#*HQHUDO#UHTXLUHPHQWV#IRU#VDIHW\#±
41#&ROODWHUDO#VWDQGDUG=#6DIHW\#UHTXLUHPHQWV#IRU#PHGLFDO#HOHFWULFDO#V\VWHPV

,(&# 943330605/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 605=# /LPLWV# ±# /LPLWV# IRU# KDUPRQLF


FXUUHQW#HPLVVLRQV#+HTXLSPHQW#LQSXW#FXUUHQW# ≤ 49#$#SHU#SKDVH,

,(&#943330606/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#6=#/LPLWV#±#6HFWLRQ#6=#/LPLWDWLRQ#RI
YROWDJH#IOXFWXDWLRQV#DQG#IOLFNHU#LQ#ORZ0YROWDJH#VXSSO\#V\VWHPV#IRU#HTXLSPHQW#ZLWK#UDWHG#FXUUHQW
≤ 49#$


,(&#943330705=4<<8/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#7=#7HVWLQJ#DQG#PHDVXUHPHQW
WHFKQLTXHV#±#6HFWLRQ#5=#(OHFWURVWDWLF#GLVFKDUJH#LPPXQLW\#WHVW#±#%DVLF#(0&#3XEOLFDWLRQ1

,(&# 943330706=4<<8/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 706=# 7HVWLQJ# DQG


PHDVXUHPHQW#WHFKQLTXHV#±#5DGLDWHG/#UDGLR0IUHTXHQF\/#HOHFWURPDJQHWLF#ILHOG#LPPXQLW\#WHVW


,(&# 943330707/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 7=# 7HVWLQJ# DQG# PHDVXUHPHQW
WHFKQLTXHV#±#6HFWLRQ#7=#(OHFWULFDO#IDVW#WUDQVLHQW2EXUVW#LPPXQLW\#WHVW#±#%DVLF#(0&#3XEOLFDWLRQ

,(&# 943330708/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 7=# 7HVWLQJ# DQG# PHDVXUHPHQW
WHFKQLTXHV#±#6HFWLRQ#8=#6XUJH#LPPXQLW\#WHVW

,(&#943330709=4<<9/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#7=#7HVWLQJ#DQG#PHDVXUHPHQW


WHFKQLTXHV# ±# 6HFWLRQ# 9=# ,PPXQLW\# WR# FRQGXFWHG# GLVWXUEDQFHV/# LQGXFHG# E\# UDGLR0IUHTXHQF\
ILHOGV

,(&# 94333070;/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 7=# 7HVWLQJ# DQG# PHDVXUHPHQW
WHFKQLTXHV# ±# 6HFWLRQ# ;=# 3RZHU# IUHTXHQF\# PDJQHWLF# ILHOG# LPPXQLW\# WHVW# ±# %DVLF# (0&


3XEOLFDWLRQ

,(&# 9433307044/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 7=# 7HVWLQJ# DQG# PHDVXULQJ
WHFKQLTXHV# ±# 6HFWLRQ# 44=# 9ROWDJH# GLSV/# VKRUW# LQWHUUXSWLRQV# DQG# YROWDJH# YDULDWLRQV# LPPXQLW\
WHVWV


9393404052)',6##,(&+(, ±#<4#±


&,635# 44=4<<:/# ,QGXVWULDO/# VFLHQWLILF# DQG# PHGLFDO# +,60,# UDGLR0IUHTXHQF\# HTXLSPHQW# ±
(OHFWURPDJQHWLF#GLVWXUEDQFH#FKDUDFWHULVWLFV#±#/LPLWV#DQG#PHWKRGV#RI#PHDVXUHPHQW# 66
$PHQGPHQW#4#+4<<<,

&,635#4704/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#±#5HTXLUHPHQWV#IRU#KRXVHKROG#DSSOLDQFHV/#HOHFWULF
WRROV#DQG#VLPLODU#DSSDUDWXV#±#3DUW#4=#(PLVVLRQ


&,635# 48/# /LPLWV# DQG# PHWKRGV# RI# PHDVXUHPHQW# RI# UDGLR# GLVWXUEDQFH# FKDUDFWHULVWLFV# RI
HOHFWULFDO#OLJKWLQJ#DQG#VLPLODU#HTXLSPHQW

&,635# 4904/# 6SHFLILFDWLRQ# IRU# UDGLR# GLVWXUEDQFH# DQG# LPPXQLW\# PHDVXULQJ# DSSDUDWXV# DQG
PHWKRGV#±#3DUW#4=#5DGLR#GLVWXUEDQFH#DQG#LPPXQLW\#PHDVXULQJ#DSSDUDWXV


&,635#55/#,QIRUPDWLRQ#WHFKQRORJ\#HTXLSPHQW#±#5DGLR#GLVWXUEDQFH#FKDUDFWHULVWLFV#±#/LPLWV#DQG
PHWKRGV#RI#PHDVXUHPHQW











BBBBBBBBBBB
66# 7KHUH#H[LVWV#D#FRQVROLGDWHG#HGLWLRQ#614#+4<<<,#WKDW#LQFOXGHV#&,635#44=#4<<:#DQG#LWV#DPHQGPHQW#4#+4<<<,1

±#<5#± 9393404052)',6##,(&+(,


%LEOLRJUDSK\

$16,2,(((#433=4<<9/#6WDQGDUG#'LFWLRQDU\#RI#(OHFWULFDO#DQG#(OHFWURQLFV#7HUPV

&,635#4905=4<<9/#6SHFLILFDWLRQ#IRU#UDGLR#GLVWXUEDQFH#DQG#LPPXQLW\#PHDVXULQJ#DSSDUDWXV#DQG
PHWKRGV#±#3DUW#5=#0HWKRGV#RI#PHDVXUHPHQW#RI#GLVWXUEDQFHV#DQG#LPPXQLW\# 67


$PHQGPHQW#4#+4<<<,

&,635#57/#,QIRUPDWLRQ#WHFKQRORJ\#HTXLSPHQW#±#,PPXQLW\#FKDUDFWHULVWLFV#±#/LPLWV#DQG#PHWKRGV
RI#PHDVXUHPHQW

(76,# ,0(76# 633# 553=4<<6/# 5DGLR# (TXLSPHQW# DQG# 6\VWHPV# +5(6,># 6KRUW# 5DQJH# 'HYLFHV
+65'V,># 7HFKQLFDO# FKDUDFWHULVWLFV# DQG# WHVW# PHWKRGV# IRU# UDGLR# HTXLSPHQW# WR# EH# XVHG# LQ# WKH


58#0+]#WR#4#333#0+]#IUHTXHQF\#UDQJH#ZLWK#SRZHU#OHYHOV#UDQJLQJ#XS#WR#833#P:

(76,# (76# 633# :74=4<<;/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# DQG# 5DGLR# VSHFWUXP# 0DWWHUV# +(50,>
(OHFWURPDJQHWLF#&RPSDWLELOLW\#+(0&,#VWDQGDUG#IRU#ZLGH0DUHD#SDJLQJ#HTXLSPHQW

(XURSHDQ# 8QLRQ# &RXQFLO# 'LUHFWLYH# :62562((&# RI# 4<# )HEUXDU\# 4<:6# RQ# WKH# KDUPRQL]DWLRQ# RI


WKH# ODZV# RI# 0HPEHU# 6WDWHV# UHODWLQJ# WR# HOHFWULFDO# HTXLSPHQW# GHVLJQHG# IRU# XVH# ZLWKLQ# FHUWDLQ
YROWDJH#OLPLWV

,(&# 93383+934,=4<;8/# ,QWHUQDWLRQDO# (OHFWURWHFKQLFDO# 9RFDEXODU\# +,(9,# ±# &KDSWHU# 934=


*HQHUDWLRQ/#WUDQVPLVVLRQ#DQG#GLVWULEXWLRQ#RI#HOHFWULFLW\#±#*HQHUDO
$PHQGPHQW#4#+4<<;,

,(&2756# 93846=4<<7/# )XQGDPHQWDO# DVSHFWV# RI# VDIHW\# VWDQGDUGV# IRU# PHGLFDO# HOHFWULFDO
HTXLSPHQW

,(&# 9393404/# 0HGLFDO# HOHFWULFDO# HTXLSPHQW# ±# 3DUW# 4=# *HQHUDO# UHTXLUHPHQWV# IRU# VDIHW\# DQG
HVVHQWLDO#SHUIRUPDQFH# 68


,(&# 939340407=4<<9/# 0HGLFDO# HOHFWULFDO# HTXLSPHQW# ±# 3DUW# 4=# *HQHUDO# UHTXLUHPHQWV# IRU# VDIHW\
71#&ROODWHUDO#6WDQGDUG=#3URJUDPPDEOH#HOHFWULFDO#PHGLFDO#V\VWHPV
$PHQGPHQW#4#+4<<<,# 69


,(&276# 943330405/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 405=# *HQHUDO# ±# 0HWKRGRORJ\


IRU# WKH# DFKLHYHPHQW# RI# IXQFWLRQDO# VDIHW\# RI# HOHFWULFDO# DQG# HOHFWURQLF# HTXLSPHQW# ZLWK# UHJDUG# WR
HOHFWURPDJQHWLF#SKHQRPHQD# 6:

,(&2755# 943330508=4<<8/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 5=# (QYLURQPHQW# ±




6HFWLRQ#8=#&ODVVLILFDWLRQ#RI#HOHFWURPDJQHWLF#HQYLURQPHQWV#±#%DVLF#(0&#3XEOLFDWLRQ

,(&276#943330607=4<<;/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#607=#/LPLWV#±#/LPLWDWLRQ#RI
HPLVVLRQ# RI# KDUPRQLF# FXUUHQWV# LQ# ORZ0YROWDJH# SRZHU# VXSSO\# V\VWHPV# IRU# HTXLSPHQW# ZLWK# UDWHG
FXUUHQW#JUHDWHU#WKDQ#49#$

,(&2755# 943330608=4<<7/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 6=# /LPLWV# ±# 6HFWLRQ# 8=


/LPLWDWLRQV# RI# YROWDJH# IOXFWXDWLRQV# DQG# IOLFNHU# LQ# ORZ0YROWDJH# SRZHU# VXSSO\# V\VWHPV# IRU
HTXLSPHQW#ZLWK#UDWHG#FXUUHQW#JUHDWHU#WKDQ#49#$


,(&# 943330704=5333/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 704=# 7HVWLQJ# DQG


PHDVXUHPHQW#WHFKQLTXHV#±#2YHUYLHZ#RI#,(&#9433307#VHULHV


BBBBBBBBBBB
67# 7KHUH#H[LVWV#D#FRQVROLGDWHG#HGLWLRQ#414#+4<<<,#WKDW#LQFOXGHV#&,635#4704=#4<<9#DQG#LWV#DPHQGPHQW#4#+4<<<,1

68# 7KLUG#HGLWLRQ/#LQ#SUHSDUDWLRQ1


69# 7KHUH#H[LVWV#D#FRQVROLGDWHG#HGLWLRQ#414#+5333,#WKDW#LQFOXGHV#,(&#939340407=#4<<9#DQG#LWV#DPHQGPHQW#4#+4<<<,1

6:# 7R#EH#SXEOLVKHG1

9393404052)',6##,(&+(, ±#<6#±


,(&#943330705=4<<8/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#7=#7HVWLQJ#DQG#PHDVXUHPHQW
WHFKQLTXHV#±#6HFWLRQ#5=#(OHFWURVWDWLF#GLVFKDUJH#LPPXQLW\#WHVW#±#%DVLF#(0&#3XEOLFDWLRQ# 6;
$PHQGPHQW#4#+4<<;,
$PHQGPHQW#5#+5333,

,(&#943330706=4<<8/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#7=#7HVWLQJ#DQG#PHDVXUHPHQW
WHFKQLTXHV#±#6HFWLRQ#6=#5DGLDWHG/#UDGLR0IUHTXHQF\/#HOHFWURPDJQHWLF#ILHOG#LPPXQLW\#WHVW# 6<


$PHQGPHQW#4#+4<<;,
$PHQGPHQW#5#+5333,

,(&#943330709=4<<9/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#7=#7HVWLQJ#DQG#PHDVXUHPHQW
WHFKQLTXHV# ±# 6HFWLRQ# 9=# ,PPXQLW\# WR# FRQGXFWHG# GLVWXUEDQFHV/# LQGXFHG# E\# UDGLR0IUHTXHQF\
ILHOGV 73


$PHQGPHQW#4#+5333,

,(&2756# 943330804=4<<9/# (OHFWURPDJQHWLF# FRPSDWLELOLW\# +(0&,# ±# 3DUW# 8=# ,QVWDOODWLRQ# DQG


PLWLJDWLRQ#JXLGHOLQHV#±#6HFWLRQ#4=#*HQHUDO#FRQVLGHUDWLRQV#±#%DVLF#(0&#3XEOLFDWLRQ

,(&#943330805=4<<:/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#8=#,QVWDOODWLRQ#DQG#PLWLJDWLRQ
JXLGHOLQHV#±#6HFWLRQ#5=#(DUWKLQJ#DQG#FDEOLQJ


,(&275#943330809/#(OHFWURPDJQHWLF#FRPSDWLELOLW\#+(0&,#±#3DUW#809=#,QVWDOODWLRQ#DQG#PLWLJDWLRQ
JXLGHOLQHV#±#0LWLJDWLRQ#RI#H[WHUQDO#(0#LQIOXHQFHV# 74

,(&# 9465904/# (OHFWULFDO# HTXLSPHQW# IRU# PHDVXUHPHQW/# FRQWURO# DQG# ODERUDWRU\# XVH# ±# (0&

UHTXLUHPHQWV#±#3DUW#4=#*HQHUDO#UHTXLUHPHQWV

,62#47<:4=5333/#0HGLFDO#GHYLFHV##±#$SSOLFDWLRQ#RI#ULVN#PDQDJHPHQW#WR#PHGLFDO#GHYLFHV

,78=4<<;/#5DGLR#5HJXODWLRQV#±#9ROXPH#5=#$SSHQGLFHV


BBBBBBBBBBB





BBBBBBBBBBB


6;# 7KHUH#H[LVWV#D#FRQVROLGDWHG#HGLWLRQ# 415#+5334,#WKDW#LQFOXGHV#,(&#943330705# +4<<8,# DQG#LWV#DPHQGPHQW#4#+4<<;,


DQG#DPHQGPHQW#5#+5333,1
6<# 7KHUH#H[LVWV#D#FRQVROLGDWHG#HGLWLRQ# 415#+5334,#WKDW#LQFOXGHV#,(&#943330706# +4<<8,# DQG#LWV#DPHQGPHQW#4#+4<<;,
DQG#DPHQGPHQW#5#+5333,1


73#7KHUH#H[LVWV#D#FRQVROLGDWHG#HGLWLRQ#414#+5334,#WKDW#LQFOXGHV#,(&#943330709#+4<<9,#DQG#LWV#DPHQGPHQW#4#+5333,1
74# 7R#EH#SXEOLVKHG1











####,6%1#50;64;0;;;;0;



,&6##441373134>#661433143>#661433153


7\SHVHW#DQG#SULQWHG#E\#WKH#,(&#&HQWUDO#2IILFH
*(1(9$/#6:,7=(5/$1'