ꢀ5HFRUGLQJꢀDꢀVHWSRLQWꢀWHPSHUDWXUHꢀIRUꢀWKHꢀꢀꢀꢀꢀꢀꢆ(&2120,&ꢇꢀVHWWLQJꢀ
32:(5ꢀ83
6
HOHFWꢀ FKRVHQꢀ VHWSRLQWꢀ WHPSHUDWXUHꢀ E\ꢀ XVLQJꢀ DQGꢀ EXWWRQVꢂꢀ .HHS
7RꢀSRZHUꢀXSꢀWKHUPRVWDWꢉ
SUHVVLQJꢀRQꢀWKHꢀꢀꢀꢀꢀEXWWRQꢀꢄꢅꢀWRꢀꢆꢀVHFRQGVꢇꢀXQWLOꢀLFRQꢀDSSHDUVꢀRQꢀGLVSOD\ꢂ
ꢀ5HFRUGLQJꢀDꢀVHWSRLQWꢀWHPSHUDWXUHꢀIRUꢀWKHꢀꢀꢀꢀꢀꢀꢆ(&2120,&ꢇꢀVHWWLQJ
Rꢀ SURJUDPꢀ WKHꢀ 9DFDWLRQꢀ WHPSHUDWXUHꢁꢀ VHOHFWꢀ WKHꢀ GHVLUHGꢀ GHJUHHꢀ XVLQJꢀ WKH
:
KHQꢀSRZHUꢀLVꢀDSSOLHGꢀIRUꢀWKHꢀILUVWꢀWLPHꢁꢀWKHꢀGLVSOD\ꢀPXVWꢀVKRZꢀWKHꢀWLPH
ꢋ
ꢋꢉꢋꢋꢁꢀWKHꢀIORRUꢀWHPSHUDWXUHꢀDQGꢀWKHꢀ0DQXDOꢀPRGHꢀLFRQꢀꢄꢀꢀꢀꢀꢀꢀꢀꢇꢂꢀ2WKHU
LQIRUPDWLRQꢀPLJKWꢀVKRZꢀXSꢀRQꢀWKHꢀGLVSOD\ꢀLIꢀLQVWDOODWLRQꢀLVꢀGHIHFWLYHꢀRU
GRHVꢀQRWꢀFRPSO\ꢀZLWKꢀWKHꢀLQVWUXFWLRQVꢂꢀ7KHꢀZDUQLQJꢀOLJKWꢀꢄ*),ꢇꢀPXVWꢀEH
RIIꢂ
7
EXWWRQVꢀDQGꢀSUHVVꢀRQꢀWKHꢀꢀꢀꢀꢀꢀꢀDQGꢀꢀꢀꢀꢀEXWWRQVꢀVLPXOWDQHRXVO\ꢀXQWLOꢀWKHꢀꢀ
LFRQꢀLVꢀGLVSOD\HGꢀꢄDSSꢂꢀꢆꢀVHFRQGVꢇꢂ
7
KHꢀPHVVDJHꢀ/ꢋꢀRUꢀ+,ꢀZLOOꢀDSSHDUꢀRQꢀWKH
1
27(ꢀꢁ:KHQꢁWKHꢁWHPSHUDWXUHꢁVHWWLQJꢁXVHGꢁLVꢁꢁꢁꢁꢁRUꢁꢁꢁꢁRUꢁꢁꢁꢁꢁꢂꢁ\RXꢁFDQꢁVWLOOꢁXVH
GLVSOD\ꢀLIꢀWKHꢀWHPSHUDWXUHꢀVHQVRUꢀLVꢀGHIHFꢈ
WLYHꢀRUꢀWKHꢀWHPSHUDWXUHꢀLVꢀEHORZꢀꢋꢀ&ꢀꢄꢆꢅꢀ)ꢇ
RUꢀ KLJKHUꢀ WKDQꢀ ꢌꢋꢀ &ꢀ ꢄꢃꢊꢋꢀ )ꢇꢂꢀ $OVRꢁꢀ WKH
KHDWLQJꢀLQGLFDWRUꢀZLOOꢀEHꢀSUHVHQWꢀRQꢀGLVSOD\
DQGꢀWKHꢀUHOD\ꢀZLOOꢀEHꢀFORVHGꢀꢄFXUUHQWꢀJRLQJ
LQꢀWKHꢀORDGꢇꢂ
WKHꢁ RUꢁ EXWWRQVꢁWRꢁFKDQJHꢁWKHꢁVHWSRLQWꢁWHPSHUDWXUHꢁZLWKRXWꢁFKDQJLQJꢁWKH
UHFRUGHGꢁWHPSHUDWXUHꢃ
ꢀ5HFDOOLQJꢀVWRUHGꢀVHWSRLQWꢀWHPSHUDWXUHV
2
QFHꢀVWRUHGꢁꢀWKHꢀVHWSRLQWꢀWHPSHUDWXUHVꢀFDQꢀEHꢀUHFDOOHGꢀVLPSO\ꢀE\ꢀVHOHFWLQJꢀWKH
RUꢀꢀꢀꢀꢀEXWWRQꢀRUꢀERWKꢀꢀꢀꢀꢀꢀDQGꢀꢀꢀꢀꢀꢀIRUꢀꢀꢀꢀꢀꢀꢀVHWSRLQWꢂ
&+$5$&7(5,67,&6
0RGHOꢉ
7+ꢃꢃꢃ*)&,ꢈ13ꢀꢄꢅꢊꢋꢀ9$&ꢇ
GRXEOHꢀSROH
6
XSSO\ꢉ
RDGꢉ
RZHUꢉ
ꢅꢊꢋꢀ9$&ꢀꢍꢋꢏꢌꢋꢀ+]
/
ꢃꢌꢂꢎꢀ$ꢀPD[LPXPꢀꢄUHVLVWLYHꢀRQO\ꢇ
ꢊꢋꢋꢋꢀZDWWVꢀ#ꢀꢅꢊꢋꢀ9$&
&+(&.,1*ꢀ*5281'ꢀ)$8/7ꢀ&,5&8,7ꢀ,17(55837(5ꢀꢆ*)&,ꢇ
3
$
GMXVWꢀWKHꢀVHWSRLQWꢀWHPSHUDWXUHꢀXQWLO
*URXQGꢀIDXOWꢀFLUFXLWꢀLQWHUUXSWHUꢀꢄ*)&,ꢇꢉꢀ ꢃꢋꢀP$ꢀWULSꢀOHYHO
KHDWLQJꢀLQGLFDWRUꢀꢄꢀꢀꢀꢀꢀꢀꢀꢇꢀDSSHDUVꢀRQ
GLVSOD\ꢂꢀ3UHVVꢀ7(67ꢀEXWWRQꢂꢀ7KHꢀWHVWꢀLV
FRQFOXVLYHꢀLIꢀWKHꢀZDUQLQJꢀOLJKWꢀꢄ*)&,ꢇ
RQꢀWKHꢀWKHUPRVWDWꢀLVꢀ21ꢀDQGꢀSRZHUꢀWR
WKHꢀORDGꢀLVꢀFXWꢈRIIꢂꢀ,IꢀWKHVHꢀHYHQWVꢀGR
QRWꢀRFFXUꢁꢀFKHFNꢀWKHꢀLQVWDOODWLRQꢂꢀ3UHVV
RQꢀ5(6(7ꢀEXWWRQꢀWRꢀUHVHWꢀWKHꢀ*)&,ꢂ
&
HUWLILFDWLRQꢉ
&6$ꢏ&ꢁꢀ86ꢀ
'
LVSOD\ꢀUDQJHꢉꢀꢀꢀꢀ
ꢋ&ꢀWRꢀꢌꢋ& ꢄꢆꢅ) WRꢀꢃꢊꢋ)ꢇ
ꢍ&ꢀWRꢀꢊꢋ& ꢄꢊꢋ) WRꢀꢃꢋꢊ)ꢇ
ꢅꢐ&ꢀꢄꢐꢅ)ꢇ
6HWWLQJꢀUDQJHꢉꢀꢀꢀꢀꢀ
'
HIDXOWꢀVHWSRLQWꢉ
HIDXOWꢀVHWSRLQWꢉꢀ
'
ꢃꢐ&ꢀꢄꢌꢊ)ꢇ
,IꢀWKHꢀ*)&,ꢀWHVWꢀIDLOVꢉꢀ
&
KHFNꢀWKHꢀORDGꢀZLUHVꢂꢀ7KHꢀWKHUPRVWDW
6WRUDJHꢉꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀ
HPSHUDWXUHꢀFRQWUROꢉ
FFXUDF\ꢉꢀ
ꢈꢅꢋ&ꢀWRꢀꢍꢋ& ꢄꢈꢊ)ꢀWRꢀꢃꢅꢋ)ꢇ
3URSRUWLRQDOꢁꢀꢃꢍꢈPLQXWHꢀF\FOHV
ꢀꢋꢂꢍ&ꢀꢄꢋꢂꢑ)ꢇꢀꢄꢊꢋꢋꢋꢀ:ꢇꢀ
PXVWꢀEHꢀLQꢀKHDWLQJꢀPRGHꢀWRꢀFDUU\ꢀRXW
WKHꢀWHVWꢀꢄKHDWLQJꢀLQGLFDWRUꢀ21ꢇꢂ
7
$
7KHꢀ *)&,ꢀ WHVWꢀ VKRXOGꢀ EHꢀ FDUULHGꢀ RXW
PRQWKO\ꢂꢀ ,Iꢀ WKHꢀ WHVWꢀ IDLOVꢁꢀ FXWꢀ RII
WKHꢀ HOHFWULFꢀ SRZHUꢀ WRꢀ WKHꢀ KHDWLQJ
V\VWHPꢀ DQGꢀ FDOOꢀ FXVWRPHUꢀ VHUYLFHꢀ RU
UHWXUQꢀWKHꢀWKHUPRVWDWꢀWRꢀ\RXUꢀVXSSOLHU
IRUꢀ YHULILFDWLRQꢂꢀ ,Iꢀ WKHꢀ ZDUQLQJꢀ OLJKW
FRPHVꢀ RQꢀ GXULQJꢀ QRUPDOꢀ RSHUDWLRQꢁ
FXWꢀ RIIꢀ SRZHUꢀ WRꢀ WKHꢀ KHDWLQJꢀ V\VWHP
DQGꢀ KDYHꢀ DQꢀ HOHFWULFLDQꢀ YHULI\ꢀ WKH
LQVWDOODWLRQꢂ
:
$55$17<
$8%(ꢀ7(&+12/2*,(6ꢀ,1&ꢂꢀ21(ꢀꢄꢃꢇꢀ<($5ꢀ/,0,7('ꢀ:$55$17<
KLVꢀ SURGXFWꢀ LVꢀ ZDUUDQWHGꢀ DJDLQVWꢀ PDWHULDOꢀ GHIHFWVꢀ DQGꢀ ZRUNPDQVKLSꢀ LQ
QRUPDOꢀXVHꢀIRUꢀDꢀSHULRGꢀRIꢀRQHꢀ\HDUꢁꢀIURPꢀWKHꢀGDWHꢀRIꢀWKHꢀRULJLQDOꢀSXUFKDVHꢀIURP
DXWKRUL]HGꢀ GHDOHUVꢂꢀ 'XULQJꢀ WKLVꢀ SHULRGꢁꢀ $8%(ꢀ WHFKQRORJLHVꢀ LQFꢂꢀ ZLOOꢀ UHSDLUꢀ RU
UHSODFHꢀWKHꢀSURGXFWꢀZLWKꢀDꢀQHZꢀRUꢀRIꢀHTXLYDOHQWꢀTXDOLW\ꢀDWꢀ$8%(ꢒ6ꢀRSWLRQꢁꢀZLWKꢈ
RXWꢀFKDUJHꢁꢀDQ\ꢀSURGXFWꢀSURYHQꢀGHIHFWLYHꢀLQꢀQRUPDOꢀXVHꢂ
7
2
3(5$7,21
7
7
7
KHꢀ WKHUPRVWDWꢀ KDVꢀ ꢊꢀ GLIIHUHQWꢀ EXWWRQVꢀ WRꢀ FRQWUROꢀ WKHꢀ IORRUꢀ WHPSHUDWXUHꢂꢀ
KH DQGꢀ ꢀ EXWWRQVꢀ LQFUHDVHꢀ RUꢀ GHFUHDVHꢀ WKHꢀ VHWSRLQWꢀ WHPSHUDWXUHꢂ
KHꢀꢀꢀꢀꢀꢀDQGꢀꢀꢀꢀꢀꢀEXWWRQVꢀDUHꢀXVHGꢀWRꢀVWRUHꢀDQGꢀUHFDOOꢀWZRꢀWHPSHUDWXUHꢀVHWWLQJVꢂ
:DUUDQW\ꢀ GRHVꢀ QRWꢀ FRYHUꢀ WUDQVSRUWDWLRQꢀ FRVWVꢂꢀ 1RUꢀ GRHVꢀ LWꢀ FRYHUꢀ Dꢀ SURGXFW
VXEMHFWHGꢀWRꢀPLVXVHꢀRUꢀDFFLGHQWDOꢀGDPDJHꢂꢀ7KLVꢀZDUUDQW\ꢀGRHVꢀQRWꢀFRYHUꢀWKH
FRVWꢀRIꢀLQVWDOODWLRQꢁꢀUHPRYDOꢀRUꢀUHLQVWDOODWLRQꢂ
ꢀ'HIDXOWꢀYDOXHV
7
KLVꢀOLPLWHGꢀZDUUDQW\ꢀLVꢀLQꢀOLHXꢀRIꢀDOOꢀRWKHUꢀZDUUDQWLHVꢁꢀREOLJDWLRQVꢀRUꢀOLDELOLWLHV
7
RꢀHUDVHꢀWKHꢀUHFRUGHGꢀVHWWLQJꢀWHPSHUDWXUHVꢀꢄꢀꢀꢀꢀꢀꢀꢀDQGꢀꢀꢀꢀꢀꢀꢇꢀDQGꢀUHSODFHꢀWKHLUꢀYDOꢈ
H[SUHVVHGꢀRUꢀLPSOLHGꢀE\ꢀWKHꢀFRPSDQ\ꢂꢀ,QꢀQRꢀHYHQWꢀVKDOOꢀ$8%(ꢀWHFKQRORJLHVꢀLQFꢂ
EHꢀ OLDEOHꢀ IRUꢀ FRQVHTXHQWLDOꢀ RUꢀ LQFLGHQWDOꢀ GDPDJHVꢀ UHVXOWLQJꢀ IURP
LQVWDOODWLRQꢀRIꢀWKLVꢀSURGXFWꢂꢀ6RPHꢀVWDWHVꢀRUꢀSURYLQFHVꢀGRꢀQRWꢀDOORZꢀOLPLWDWLRQVꢀRQ
KRZꢀ ORQJꢀ DQꢀ LPSOLHGꢀ ZDUUDQW\ꢀ ODVWVꢁꢀ RUꢀ WKHꢀ H[FOXVLRQꢀ RUꢀ OLPLWDWLRQꢀ RI
LQFLGHQWDOꢀ RUꢀ FRQVHTXHQWLDOꢀ GDPDJHVꢁꢀ VRꢀ WKHꢀ DERYHꢀ H[FOXVLRQVꢀ RUꢀ OLPLWDWLRQV
PD\ꢀQRWꢀDSSO\ꢀWRꢀ\RXꢂ7KLVꢀZDUUDQW\ꢀJLYHVꢀ\RXꢀVSHFLILFꢀOHJDOꢀULJKWVꢀDQGꢀ\RXꢀPD\
DOVRꢀKDYHꢀRWKHUꢀULJKWVꢀZKLFKꢀYDU\ꢀIURPꢀVWDWHꢀWRꢀVWDWHꢂ
XHVꢀE\ꢀWKHꢀGHIDXOWꢀRQHVꢁꢀꢀꢀꢀꢀꢅꢐꢀ&ꢀꢄꢐꢅꢀ)ꢇꢀDQGꢀꢀꢀꢀꢃꢐꢀ&ꢀꢄꢌꢊꢀ)ꢇꢀ&KDQJHꢀWKHꢀ&ꢀꢏꢀ)
VHOHFWRUꢀVZLWFKꢀRQFHꢀDQGꢀEDFNꢀDJDLQꢀWRꢀWKHꢀSUHYLRXVꢀVHWWLQJꢂ
ꢀ6HWWLQJꢀDꢀVHWSRLQWꢀWHPSHUDWXUHꢀ
3UHVVꢀRQFHꢀWKHꢀꢀ RUꢀꢀꢀꢀEXWWRQꢀWRꢀVHHꢀWKHꢀVHWSRLQWꢀWHPSHUDWXUHꢀRQꢀGLVSOD\ꢂꢀ(YHU\
VXEVHTXHQWꢀSUHVVꢀZLOOꢀFKDQJHꢀWKHꢀVHWSRLQWꢀWHPSHUDWXUHꢀE\ꢀRQHꢀGHJUHHꢂ
ꢀ 5HFRUGLQJꢀ VHWSRLQWꢀ WHPSHUDWXUHꢀ IRUꢀ ꢀ ꢀ ꢀ ꢆ&20)257ꢇꢀ DQGꢀ ꢀ ꢀ ꢆ(&2120,&ꢇ
VHWWLQJV
7KHꢀ GHIHFWLYHꢀ SURGXFWꢀ DQGꢀ WKHꢀ RULJLQDOꢀ VDOHꢀ UHFHLSWꢀ PXVWꢀ EHꢀ UHWXUQHGꢀ WRꢀ WKH
RULJLQDOꢀGHDOHUꢀRUꢀVKLSSHGꢀSUHꢈSDLGꢁꢀLQVXUHGꢀDQGꢀDGGUHVVHGꢀWRꢉ
%\ꢀ UHFRUGLQJꢀ WKHꢀ VHWSRLQWꢀ WHPSHUDWXUHVꢀ \RXꢀ ZLOOꢀ EHꢀ DEOHꢀ WRꢀ JRꢀ IURPꢀ WKH
$XEHꢀWHFKQRORJLHVꢀLQFꢈꢀꢀ&XVWRPHUꢀ6HUYLFHꢀꢀꢉꢅꢊꢋꢀ$Yꢈꢀ0RQWULFKDUGꢀ
VHWWLQJꢀWRꢀWKHꢀꢀꢀꢀꢀRUꢀꢀꢀꢀꢀꢀVHWWLQJꢀE\ꢀVLPSO\ꢀSUHVVLQJꢀWKHꢀꢀꢀꢀꢀꢀRUꢀꢀꢀꢀꢀEXWWRQꢀRUꢀꢄꢀꢀꢀꢀꢀDQGꢀꢀ 6DLQWꢂ-HDQꢂVXUꢂ5LFKHOLHXꢀꢆ4XHEHFꢇꢀꢀ-ꢃ;ꢀꢊ.ꢌ
ꢀIRUꢀꢀꢀꢀꢀꢂ
ZZZꢈDXEHWHFKꢈFRPꢀꢀVHUYLFH#DXEHWHFKꢈFRP
ꢇ
ꢀ5HFRUGLQJꢀDꢀVHWSRLQWꢀWHPSHUDWXUHꢀIRUꢀWKHꢀꢀꢀꢀꢀꢀꢆ&20)257ꢇꢀVHWWLQJꢀ
,
Iꢀ\RXꢀKDYHꢀDQ\ꢀTXHVWLRQVꢀFRQFHUQLQJꢀWKHꢀLQVWDOODWLRQꢀRUꢀSURJUDPPLQJꢀRIꢀWKLV
SURGXFWꢁꢀ SOHDVHꢀ FDOOꢀ RXUꢀ WHFKQLFDOꢀ DVVLVWDQFHꢀ DWꢀ ꢆꢄꢊꢅꢇꢀ ꢍꢊꢌꢂꢄꢎꢅꢅ IRUꢀ WKH
RQWUHDOꢀDUHDꢀRUꢀꢁꢂꢌꢅꢅꢂꢌꢍꢁꢂ$8%( IRUꢀRXWVLGHꢀDUHDꢁꢀ0RQGD\ꢀWRꢀ)ULGD\
EHWZHHQꢀꢐꢉꢆꢋꢀ$0ꢀDQGꢀꢍꢉꢋꢋꢀ30ꢀ(DVWHUQꢀWLPHꢂ
6
HOHFWꢀ FKRVHQꢀ VHWSRLQWꢀ WHPSHUDWXUHꢀ E\ꢀ XVLQJꢀ DQGꢀ EXWWRQVꢂꢀ .HHS
SUHVVLQJꢀRQꢀWKHꢀꢀꢀꢀꢀEXWWRQꢀꢄꢅꢀWRꢀꢆꢀVHFRQGVꢇꢀXQWLOꢀLFRQꢀDSSHDUVꢀRQꢀGLVSOD\ꢂ
0
ꢂꢇꢆꢂꢈꢆꢂꢄꢅꢅꢅꢅꢅꢀꢁꢂꢃꢄꢄꢄꢀꢄꢄꢃ%ꢅꢅꢅꢁꢆꢁ