%22.

&+$37(5

1XFOHDU0HGLFLQH 
:LOOLDP+HUULQJ0')$&5
/HDUQLQJ5DGLRORJ\5HFRJQL]LQJWKH%DVLFVHH

+RZ,W:RUNV
$UDGLRDFWLYHLVRWRSHUDGLRLVRWRSHLVDQXQVWDEOHIRUPRIDQHOHPHQWWKDWHPLWV
UDGLDWLRQIURPLWVQXFOHXVDVLWGHFD\V(YHQWXDOO\WKHHQGSURGXFWLVDVWDEOH
QRQUDGLRDFWLYHLVRWRSHRIDQRWKHUHOHPHQW
5DGLRLVRWRSHVFDQEHSURGXFHGDUWLILFLDOO\PRVWIUHTXHQWO\E\QHXWURQHQULFKPHQWLQD
QXFOHDUUHDFWRURULQDF\FORWURQRUPD\RFFXUQDWXUDOO\1DWXUDOO\RFFXUULQJUDGLRLVRWRSHV
LQFOXGHXUDQLXPDQGWKRULXP7KHYDVWPDMRULW\RIUDGLRLVRWRSHVDUHSURGXFHG
DUWLILFLDOO\
5DGLRSKDUPDFHXWLFDOVDUHFRPELQDWLRQVRIUDGLRLVRWRSHVDWWDFKHGIRUWKHSXUSRVHV
RIWKLVFKDSWHUWRDSKDUPDFHXWLFDOZLWKELQGLQJSURSHUWLHVWKDWDOORZLWWRFRQFHQWUDWHLQ
FHUWDLQERG\WLVVXHVHJWKHOXQJVWK\URLGRUERQHV5DGLRLVRWRSHVXVHGLQFOLQLFDOQXFOHDU
PHGLFLQHDUHDOVRUHIHUUHGWRDVUDGLRQXFOLGHVUDGLRWUDFHUVRUVRPHWLPHVVLPSO\
WUDFHUV
9DULRXVERG\RUJDQVKDYHDVSHFLILFDIILQLW\IRURUDEVRUSWLRQRIGLIIHUHQWELRORJLFDOO\
DFWLYHFKHPLFDOV)RUH[DPSOHWKHWK\URLGWDNHVXSLRGLQHWKHEUDLQXWLOL]HVJOXFRVH
ERQHVXWLOL]HSKRVSKDWHVDQGSDUWLFOHVRIDFHUWDLQVL]HFDQEHWUDSSHGLQWKHOXQJ
FDSLOODULHV
$IWHUWKHUDGLRSKDUPDFHXWLFDOLVFDUULHGWRDWLVVXHRURUJDQLQWKHERG\LWVUDGLRDFWLYH
HPLVVLRQVDOORZLWWREHPHDVXUHGDQGLPDJHGXVLQJDGHWHFWLRQGHYLFHFDOOHGDJDPPD
FDPHUD
7DEOHWRXWOLQHVYDULRXVUDGLRLVRWRSHVDQGSKDUPDFHXWLFDOVXVHGLQQXFOHDULPDJLQJ
7$%/(
5$',23+$50$&(87,&$/686(',118&/($50(',&,1(

2UJDQ

5DGLRDFWLYH,VRWRSH

3KDUPDFHXWLFDO

%UDLQ

7HFKQHWLXPP7FP
,RGLQH

3HUWHFKQHWDWHJOXFRKHSWRQDWH
GLHWK\OHQHWULDPLQHSHQWDDFHWLFDFLG'73$

&DUGLDF

7KDOOLXP7FP

3\URSKRVSKDWHSHUWHFKQHWDWHVHVWDPLEL

WHERUR[LPHODEHOHGUHGEORRGFHOOV
/XQJ

;HQRQ;HQRQ.U\SWRQ 0DFURDJJUHJDWHGDOEXPLQ
P7FPDHURVROL]HG

%RQH

7FP

3KRVSKDWHVGLSKRVSKRQDWHVHJ0'3

.LGQH\

7FP,RGLQH,RGLQH

*OXFRKHSWRQDWHPHUFDSWRDFHW\OWULJO\FLQH
+LSSXUDQ'73$

7K\URLG

,RGLQH,RGLQH,RGLQH
7FP

3HUWHFKQHWDWHZLWK7FP

0XOWLSOHRUJDQV *DOOLXP

&LWUDWH

:KLWHEORRG
,QGLXP7FP
FHOOVLQIHFWLRQ

:KLWHEORRGFHOOV

5DGLRDFWLYH'HFD\
8QVWDEOHLVRWRSHVDWWHPSWWRUHDFKVWDELOLW\E\RQHRUPRUHRIVHYHUDOSURFHVVHV7KH\PD\
XQGHUJRVSOLWWLQJILVVLRQRUWKH\PD\HPLWSDUWLFOHVDOSKDRUEHWDSDUWLFOHVDQGRU
HQHUJ\JDPPDUD\VLQWKHIRUPRIUDGLDWLRQ
)LVVLRQLVDGHVWUXFWLYHSURFHVVWKDWRFFXUVSULPDULO\LQQXFOHDUUHDFWRUV
$OSKDSDUWLFOHVKDYHDUHODWLYHO\KLJKHQHUJ\DUHODUJHDQGVWURQJO\DEVRUEHGE\
DGMDFHQWWLVVXHDQGFDQFDXVHVXEVWDQWLDOGDPDJHWRQHDUE\PROHFXOHV7KH\DUH
QRWXVHGGLDJQRVWLFDOO\LQPHGLFLQH
%HWDSDUWLFOHVDUHKLJKHQHUJ\KLJKVSHHGHOHFWURQVRUSRVLWURQVSRVLWLYH
HOHFWURQVWKDWKDYHDSHQHWUDWLQJSRZHUEHWZHHQDOSKDSDUWLFOHVDQGJDPPDUD\V
7KHLUPDLQGLVDGYDQWDJHLQGLDJQRVLVLVWKHUHODWLYHO\KLJKUDGLDWLRQGRVHWKH\GHOLYHU
WRWKHSDWLHQW
*DPPDGHFD\LQYROYHVWKHHPLVVLRQRIHQHUJ\IURPDQXQVWDEOHQXFOHXVLQWKH
IRUPRIHOHFWURPDJQHWLFUDGLDWLRQ*DPPDUD\VDUHLGHQWLFDOWR[UD\VH[FHSWWKDW
JDPPDUD\VRULJLQDWHIURPQXFOHLZKHUHDV[UD\VHPDQDWHIURPRXWVLGHWKH
QXFOHXV
5DGLRLVRWRSHVXQGHUJRJDPPDGHFD\DWGLVFUHWHHQHUJLHV7KHVHHQHUJLHVDUH
XVXDOO\H[SUHVVHGLQWKHIRUPRIWKHHOHFWURQYROWH90RVWUDGLRLVRWRSHVSURGXFH
HQHUJLHVLQWKHUDQJHRIWKRXVDQGVNH9WRPLOOLRQV0H9RIHOHFWURQYROWV
7DEOHWGHVFULEHVVRPHRIWKHPRVWFRPPRQO\XVHGWHUPVLQQXFOHDUPHGLFLQH
7$%/(
7(50,12/2*<

7HUP

'HVFULSWLRQ

3K\VLFDO 7KHWLPHUHTXLUHGIRUWKHQXPEHURIUDGLRDFWLYHDWRPVLQDVDPSOHWRGHFUHDVHE\
KDOIOLIH 
%LRORJLF
KDOIOLIH

7KHWLPHQHHGHGIRUKDOIRIDUDGLRSKDUPDFHXWLFDOWRGLVDSSHDUIURPWKHELRORJLF
V\VWHPLQWRZKLFKLWKDVEHHQLQWURGXFHG

(IIHFWLYH 7LPHGHSHQGHQWRQERWKWKHSK\VLFDOKDOIOLIHDQGWKHELRORJLFDOFOHDUDQFH
KDOIOLIH
,VRWRSHV 6SHFLHVRIDWRPVRIDFKHPLFDOHOHPHQWZLWKWKHVDPHDWRPLFQXPEHUSURWRQVLQ
QXFOHXVEXWZLWKGLIIHUHQWQXPEHUVRIQHXWURQVDQGWKXVDWRPLFPDVVHVWRWDO
QXPEHURISURWRQVDQGQHXWURQVHYHU\HOHPHQWKDVDWOHDVWRQHLVRWRSH
6WDEOH
'RQRWXQGHUJRUDGLRDFWLYHGHFD\
LVRWRSHV
8QVWDEOH 8QGHUJRVSRQWDQHRXVGLVLQWHJUDWLRQ
LVRWRSHV
$WRPLF
QXPEHU
=

'HILQHVDQHOHPHQWDOODWRPVZLWKWKHVDPHDWRPLFQXPEHUKDYHQHDUO\WKHVDPH
SURSHUWLHV

0DVV
QXPEHU
$

7KHQXPEHURISURWRQVDQGQHXWURQVLQWKHQXFOHXVGLIIHUHQWQXPEHUVRIQHXWURQVLV
ZKDWSURGXFHVLVRWRSHV

+DOI/LIH
,QRUGHUIRUDUDGLRLVRWRSHWREHXVHIXOIRUPHGLFDOGLDJQRVLVLWPXVWEHFDSDEOHRIHPLWWLQJ
JDPPDUD\VRIVXIILFLHQWHQHUJ\WREHPHDVXUDEOHRXWVLGHRIWKHERG\,WDOVRPXVWKDYH
DKDOIOLIHWKDWLVORQJHQRXJKIRULWWRVWLOOEHUDGLRDFWLYHDIWHUVKLSSLQJDQGSUHSDUDWLRQ
EXWVXIILFLHQWO\VKRUWVRDVWRGHFD\VRRQDIWHULWLVXVHGIRULPDJLQJ
7KHSK\VLFDOKDOIOLIHRIDUDGLRLVRWRSHLVWKHWLPHUHTXLUHGIRUWKHQXPEHURIUDGLRDFWLYH
DWRPVLQDVDPSOHWRGHFUHDVHE\3K\VLFDOKDOIOLIHLVDSURSHUW\LQKHUHQWWRWKH
UDGLRLVRWRSH0RVWUDGLRLVRWRSHVIRUPHGLFDOXVHPXVWKDYHKDOIOLYHVRIKRXUVRUGD\V
7DEOHWRXWOLQHVWKHSK\VLFDOKDOIOLYHVRIVRPHRIWKHPRVWFRPPRQO\XVHG
UDGLRLVRWRSHV
7$%/(
3+<6,&$/+$/)/,9(62)&20021/<86('5$',2,62723(6

5DGLRLVRWRSH

3K\VLFDO+DOI/LIH

7HFKQHWLXPP KRXUV
,RGLQH

GD\V

,RGLQH

KRXUV

*DOOLXP

GD\V

,QGLXP

GD\V

7KDOOLXP

KRXUV

%LRORJLFDOKDOIOLIHDFFRXQWVIRUWKHELRORJLFDOFOHDUDQFHRIDUDGLRSKDUPDFHXWLFDOIURP
DQRUJDQRUWLVVXH,IDUDGLRSKDUPDFHXWLFDOLVFOHDUHGIURPWKHERG\YLDWKHNLGQH\VEXW
NLGQH\IXQFWLRQLVLPSDLUHGWKHUDGLRSKDUPDFHXWLFDOZLOOKDYHDORQJHUELRORJLFDOKDOIOLIH
WKDQLINLGQH\IXQFWLRQZDVQRUPDO
7KHHIIHFWLYHKDOIOLIHLVGHSHQGHQWRQERWKWKHSK\VLFDOKDOIOLIHDQGWKHELRORJLFDO
FOHDUDQFH

1XFOHDU0HGLFLQH(TXLSPHQW
%\IDUWKHPRVWZLGHO\XVHGUDGLRLVRWRSHLVWHFKQHWLXPPDEEUHYLDWHG7FPWKH
PVWDQGLQJIRUPHWDVWDEOH,WKDVDKDOIOLIHRIKRXUVPHDQLQJWKDWLWORVHVURXJKO\
KDOIRILWVUDGLRDFWLYLW\LQWKDWWLPH,WGHFD\VE\HPLWWLQJORZHQHUJ\JDPPDUD\V
UDWKHUWKDQKLJKHUHQHUJ\EHWDHPLVVLRQDQGLVHDVLO\FRPELQHGZLWKDZLGHYDULHW\RI
ELRORJLFDOO\DFWLYHVXEVWDQFHV
5DGLRLVRWRSHGRVHVLQQXFOHDUVFDQQLQJDUHW\SLFDOO\LQPLQXWHDPRXQWVWKHPLFURFXULH
RUPLOOLFXULHOHYHO

'HWHFWLQJDQG0HDVXULQJWKH5DGLRDFWLYLW\RIDQ,VRWRSH
*HLJHUFRXQWHUV
*HLJHUFRXQWHUVDUHXVHGPRVWO\WRGHWHFWFRQWDPLQDWLRQVHJVSLOOVDQGDUH
HVSHFLDOO\JRRGDWGHWHFWLQJORZOHYHOVRIUDGLRDFWLYLW\7KHLUSRUWDELOLW\DQG
VHQVLWLYLW\DOORZWKHPWRVXUYH\UHODWLYHO\ODUJHDUHDVIRUWKHSUHVHQFHRUDEVHQFHRI
UDGLDWLRQ
6FLQWLOODWLRQGHWHFWRUV
6FLQWLOODWLRQLVWKHSURFHVVE\ZKLFKDPDWHULDOFDOOHGDVFLQWLOODWRUWKHPRVW
FRPPRQFRPSRXQGEHLQJVRGLXPLRGLGHPL[HGZLWKWKDOOLXPOXPLQHVFHVZKHQ
H[FLWHGE\LRQL]LQJUDGLDWLRQ7KHOXPLQHVFHQFHLVLQWKHIRUPRIDPLQLVFXOH
IODVKRIOLJKW$VFLQWLOODWLRQGHWHFWRUUHFHLYHVWKHHPLWWHGOLJKWLQWHQVLILHVLWV
VLJQDOLQDGHYLFHFDOOHGDSKRWRPXOWLSOLHUDQGFRQYHUWVWKDWVLJQDOLQWRDQ
HOHFWULFDOSXOVHIRUIXUWKHUDQDO\VLVE\FRPSXWHU
6FLQWLOODWLRQGHWHFWRUVKDYHWKHFDSDFLW\WRFRQYHUWLRQL]LQJUDGLDWLRQLQWRHOHFWULFDO
HQHUJ\LQDQDPRXQWSURSRUWLRQDOWRWKHHQHUJ\GHSRVLWHGLQWKHFU\VWDO
ZKLFKLVNH\WRWKHLUDELOLW\WRSURGXFHGLDJQRVWLFLPDJHV
*DPPDFDPHUDV
$JDPPDFDPHUDXVHVRQHRUPRUHVFLQWLOODWLRQGHWHFWRUVPDGHRIFU\VWDOVWKDW
VFLQWLOODWHLQUHVSRQVHWRJDPPDUD\VHPLWWHGIURPWKHSDWLHQW$FRPSXWHU

UHFRQVWUXFWVDQLPDJHEDVHGRQWKHGLVWULEXWLRQDQGFRQFHQWUDWLRQRIWKH
UDGLRLVRWRSHGHSRVLWHGLQWKHWDUJHWRUJDQ
,PDJHVFDQEHDFTXLUHGHLWKHUDVVWDWLFZKROHERG\RUG\QDPLFLPDJHVFKDQJHLQ
DFWLYLW\LQWKHVDPHORFDWLRQRYHUDSHULRGRIWLPHRU63(&7LPDJHV
6LQJOHSKRWRQHPLVVLRQFRPSXWHGWRPRJUDSK\63(&7LPDJLQJLVDQXFOHDU
PHGLFLQHVWXG\SHUIRUPHGE\XVLQJDJDPPDFDPHUDWRDFTXLUHPXOWLSOHWZRGLPHQVLRQDO
'LPDJHVIURPPXOWLSOHDQJOHVZKLFKDUHWKHQUHFRQVWUXFWHGE\FRPSXWHULQWRD
WKUHHGLPHQVLRQDO'GDWDVHWWKDWFDQEHPDQLSXODWHGWRGHPRQVWUDWHWKLQVOLFHVLQ
DQ\SURMHFWLRQ7RDFTXLUH63(&7VFDQVWKHJDPPDFDPHUDURWDWHVDURXQGWKH
SDWLHQW
63(&7VFDQVXVHWKHVDPHUDGLRSKDUPDFHXWLFDOVDV'SODQDULPDJHV
$Q\QXFOHDUPHGLFLQHVWXG\FDQEHSHUIRUPHGXVLQJ63(&763(&7LVHVSHFLDOO\XVHGLQ
P\RFDUGLDOSHUIXVLRQLPDJLQJERQHLPDJLQJDQGIXQFWLRQDOEUDLQLPDJLQJ
0RVWQXFOHDUPHGLFLQHVFDQVKDYHDERXWFPRIUHVROXWLRQPHDQLQJWKDWWKH\
FDQQRWDFFXUDWHO\GHWHFWOHVLRQVVPDOOHUWKDQWKDW

1XFOHDU0HGLFLQH6DIHW\
5DGLRSKDUPDFHXWLFDOVDUHSUHVFULSWLRQGUXJVWKDWUHTXLUHGLVSHQVLQJE\DSK\VLFLDQ
(DFKGRVHKDVWREHDVVD\HGIRULWVUDGLRDFWLYLW\EHIRUHEHLQJDGPLQLVWHUHGWRWKH
SDWLHQW'RVHFDOLEUDWLRQLVHVVHQWLDOLQDVVXULQJWKDWDVDIHDQGHIIHFWLYHDPRXQWRI
UDGLRSKDUPDFHXWLFDOLVJLYHQ7KLVLVXVXDOO\GRQHE\LQVHUWLQJDV\ULQJHFRQWDLQLQJWKH
UDGLRSKDUPDFHXWLFDOLQWRDQLRQL]DWLRQFKDPEHUWKDWFRQYHUWVWKHLRQL]DWLRQRIDVDPSOH
LQWRDPHDVXUDEOHGRVHGHSHQGLQJRQWKHUDGLRLVRWRSHXVHG
7KHSHUIRUPDQFHRIWKHGRVHFDOLEUDWRULWVHOIPXVWEHHYDOXDWHGDWVHWLQWHUYDOVXWLOL]LQJD
VHULHVRIWHVWVWRHQVXUHWKDWWKHFDOLEUDWRULVDFFXUDWHDQGUHOLDEOH
$ORFNHGDQGFRQWUROOHGDUHDLVQHHGHGIRUWKHVWRUDJHDQGSUHSDUDWLRQRI
UDGLRSKDUPDFHXWLFDOV7HFKQLTXHVQHHGWREHLQSODFHWRDVVXUHWKHPDWHULDOEHLQJLQMHFWHGLV
VWHULOHDQGIUHHRIS\URJHQV
6SLOOVRIOLTXLGUDGLRSKDUPDFHXWLFDOVVRPHWLPHVRFFXUDFFLGHQWDOO\WKHUHDUHSUHVFULEHG
PHWKRGVIRUFRQWDLQLQJDQGFOHDQLQJWKHVSLOODVZHOODVGLVSRVLQJRIWKHPDWHULDOXVHGIRU
WKHFOHDQXS7KHDUHDLQZKLFKWKHVSLOOKDVRFFXUUHGPD\EHPRQLWRUHGE\XVLQJ*HLJHU
FRXQWHUV
:KLOHWKHUHLVQRDEVROXWHFRQWUDLQGLFDWLRQWRWKHXVHRIUDGLRSKDUPDFHXWLFDOVGXULQJ
SUHJQDQF\VRPHUDGLRLVRWRSHVHJUDGLRDFWLYHLRGLQHFDQFURVVWKHSODFHQWD
DQGEHFRQFHQWUDWHGLQWKHIHWDOWK\URLG6LPLODUO\ZRPHQZKRDUHEUHDVWIHHGLQJPD\
KDYHWRVXVSHQGEUHDVWIHHGLQJIRUDSHULRGRIWLPHIROORZLQJDGPLQLVWUDWLRQRIVRPH
UDGLRSKDUPDFHXWLFDOVEHFDXVHWKHSKDUPDFHXWLFDOPD\SDVVWKURXJKEUHDVWPLONWRWKHFKLOG

5HQDOH[FUHWLRQRIVRPHUDGLRLVRWRSHVPHDQVWKH\FROOHFWDQGFRQFHQWUDWHLQWKHXULQDU\
EODGGHURIWKHPRWKHUDQGFDQSRVHDSRWHQWLDOULVNE\WKHLUSUR[LPLW\WRWKHGHYHORSLQJ
IHWXV
$GYHUVHUHDFWLRQVWRWKHUDGLRSKDUPDFHXWLFDOLWVHOIDUHH[WUHPHO\UDUHDQGDUHUHODWHG
WRWKHSKDUPDFHXWLFDOVXFKDVWKRVHFRPSRVHGRIKXPDQVHUXPDOEXPLQUDWKHUWKDQWKH
UDGLRLVRWRSH
6RPHW\SHVRIUDGLRWKHUDS\XWLOL]LQJUDGLRSKDUPDFHXWLFDOVDGPLQLVWHUHGDWPXFK
KLJKHUGRVHVWKDQIRUGLDJQRVWLFVWXGLHVPD\UHTXLUHWKHSDWLHQWWREHKRVSLWDOL]HGLQRUGHU
WRDVVXUHUDGLDWLRQVDIHW\3DWLHQWVPD\EHDVVLJQHGWRSULYDWHURRPVZLWKRXWRXWVLGHYLVLWRUV
IRUKRXUV7KH1XFOHDU5HJXODWRU\&RPPLVVLRQQRORQJHUUHTXLUHVKRVSLWDOL]DWLRQIRU
,RGLQHWUHDWPHQWRIWKHWK\URLG
3DWLHQWVWUHDWHGZLWKUDGLRLRGLQHDJDLQLQGRVHVPXFKODUJHUWKDQIRUGLDJQRVWLFSXUSRVHV
PD\EHZDUQHGWRFDUU\FHUWLILFDWLRQRIWKHLUWUHDWPHQWEHFDXVHWKH\PD\WULJJHUUDGLDWLRQ
VHFXULW\DODUPVDWDLUSRUWVDQGHOVHZKHUHIRUXSWRIRXUPRQWKVDIWHUWUHDWPHQW
3DWLHQWVXQGHUJRLQJWUHDWPHQWZLWKUDGLRSKDUPDFHXWLFDOVPXVWIROORZLQVWUXFWLRQVVRWKDW
DGRVHWRRWKHULQGLYLGXDOVFDQEHPDLQWDLQHGDVORZDVLVUHDVRQDEO\SRVVLEOH

&RPPRQO\8VHG1XFOHDU0HGLFLQH6WXGLHV
&RPPRQO\XVHGQXFOHDUPHGLFLQHVWXGLHVLQFOXGH
%RQHVFDQV
3XOPRQDU\YHQWLODWLRQSHUIXVLRQVFDQV
&DUGLDFVFDQV
7K\URLGVFLQWLJUDSK\
+,'$VFDQV
*DVWURLQWHVWLQDOEOHHGLQJEORRGORVVVFDQV

%RQH6FDQV
%RQHVFDQVDUHWKHVFUHHQLQJPHWKRGRIFKRLFHIRUWKHGHWHFWLRQRIRVVHRXV
PHWDVWDWLFGLVHDVHDQGIRUGLDJQRVLQJIUDFWXUHVEHIRUHWKH\EHFRPHYLVLEOHE\
FRQYHQWLRQDOUDGLRJUDSK\
%RQHVFDQVRIIHUWKHDGYDQWDJHVRIEHLQJZLGHO\DYDLODEOHDQGLQH[SHQVLYHDQGWKH\
FDQLPDJHWKHHQWLUHVNHOHWRQDWWKHVDPHWLPH:KLOH05,VFDQVPD\EHPRUHVHQVLWLYH
LQGHWHFWLQJRVVHRXVPHWDVWDVHVWKH\DUHOHVVZLGHO\DYDLODEOHDQGXVXDOO\PXFKPRUH
H[SHQVLYH7KHGLVDGYDQWDJHVRIERQHVFDQQLQJDUHSRRUVSDWLDODQGFRQWUDVWUHVROXWLRQ
7HFKQHWLXPP7FPPHWK\OHQHGLSKRVSKRQDWH0'3LVWKH
UDGLRSKDUPDFHXWLFDOPRVWIUHTXHQWO\XVHGIRUERQHVFDQQLQJ,WFRPELQHVDUDGLRLVRWRSH

WHFKQHWLXPPZLWKDSKDUPDFHXWLFDO0'3WKDWGLUHFWVWKHLVRWRSHWRERQH

'LSKRVSKRQDWHVDUHUDSLGO\UHPRYHGIURPWKHFLUFXODWLRQDQGSURGXFHOLWWOHEDFNJURXQG
QRLVHIURPXSWDNHLQVRIWWLVVXHV
$IWHUWKHLQWUDYHQRXVLQMHFWLRQRIWKHUDGLRSKDUPDFHXWLFDOPRVWRIWKHGRVHLVTXLFNO\
H[WUDFWHGE\WKHERQH7KHUHPDLQLQJUDGLRSKDUPDFHXWLFDOLVH[FUHWHGE\WKHNLGQH\VDQG
VXEVHTXHQWO\FROOHFWVLQWKHXULQDU\EODGGHU/HVVWKDQRIWKHLQMHFWHGGRVHUHPDLQVLQ
WKHEORRGKRXUVDIWHULQMHFWLRQ
,QPRVWLQVWDQFHVWKHHQWLUHERG\LVLPDJHGDERXWWRKRXUVDIWHULQMHFWLRQ
HLWKHUE\SURGXFLQJRQHLPDJHRIWKHZKROHERG\PXOWLSOHVSRWLPDJHVRISDUWLFXODUERG\
SDUWVRUERWK$QWHULRUDQGSRVWHULRUYLHZVDUHIUHTXHQWO\REWDLQHGEHFDXVHHDFKYLHZ
EULQJVGLIIHUHQWVWUXFWXUHVFORVHUWRWKHJDPPDFDPHUDIRURSWLPXPLPDJLQJHJWKH
VWHUQXPRQWKHDQWHULRUYLHZDQGWKHVSLQHRQWKHSRVWHULRUYLHZ
8QOLNHWKHFRQYHQWLRQXVHGIRUYLHZLQJRWKHUVWXGLHVLQUDGLRORJ\WKHSDWLHQW
VULJKWVLGHLV
QRWDOZD\VRQ\RXUOHIWLQQXFOHDUVFDQV7KLVFDQEHFRQIXVLQJVRPDNHVXUH\RXORRNIRUWKH
ODEHOVRQWKHVFDQ)LJI

)LJXUH
1RUPDOERQHVFDQ
$QWHULRUDQGSRVWHULRUYLHZVDUHIUHTXHQWO\REWDLQHGVLQFHHDFKYLHZEULQJVGLIIHUHQWVWUXFWXUHVFORVHUWR
WKHJDPPDFDPHUDIRURSWLPXPLPDJLQJHJWKHVWHUQXPRQWKHDQWHULRUYLHZVROLGZKLWHDUURZDQG
WKHVSLQHRQWKHSRVWHULRUYLHZGRWWHGZKLWHDUURZ1RWLFHWKDWWKHNLGQH\VDUHQRUPDOO\YLVLEOHRQWKH
SRVWHULRUYLHZZKLWHRYDO8QOLNHWKHFRQYHQWLRQXVHGLQYLHZLQJRWKHUVWXGLHVLQUDGLRORJ\WKHSDWLHQW
V
ULJKWVLGHLVQRWDOZD\VRQ\RXUOHIW2QSRVWHULRUYLHZVWKHSDWLHQW
VULJKWVLGHLVRQ\RXUULJKW7KLVFDQ

EHFRQIXVLQJVRPDNHVXUH\RXORRNIRUWKHODEHOVRQWKHVFDQ,QPDQ\FDVHVDZKLWHPDUNHUGRWZLOOEH
ORFDWHGRQWKHSDWLHQW
VULJKWVLGHZKLWHFLUFOHV

0HWDVWDVHVWRERQH
7FP0'3GHSRVLWVLQWKHJUHDWHVWFRQFHQWUDWLRQLQWKRVHDUHDVRIJUHDWHVWERQH
WXUQRYHU5DGLRQXFOLGHERQHVFDQQLQJLVVHQVLWLYHWRIRUPHWDVWDVHV
EXWQRWVSHFLILF0DQ\EHQLJQOHVLRQVDOVRSURGXFHLQFUHDVHGERQHWXUQRYHUDQG
UDGLRWUDFHUXSWDNHLQFOXGLQJIUDFWXUHVDUWKULWLVDQGRVWHRP\HOLWLV
7FP0'3LVQRUPDOO\FOHDUHGWKURXJKWKHNLGQH\VDQGFROOHFWVLQWKHXULQDU\
EODGGHU7KHUHIRUHWKHNLGQH\VZLOOQRUPDOO\VKRZLQFUHDVHGXSWDNH
HVSHFLDOO\RQWKHSRVWHULRUYLHZVZKHUHWKHNLGQH\VDUHFORVHUWRWKHGHWHFWRU
&RQYHQWLRQDOUDGLRJUDSKVRIWKHDIIHFWHGDUHDVDUHWKHQREWDLQHGWRIXUWKHU
FKDUDFWHUL]HWKHOHVLRQVVHHQRQWKHERQHVFDQ,IWKHUDGLRJUDSKVVKRZHLWKHUD
EHQLJQFDXVHIRUWKHLQFUHDVHGXSWDNHHJDKHDOLQJIUDFWXUHRUDFOHDUO\
PDOLJQDQWERQHOHVLRQQRIXUWKHUVWXGLHVDUHQHHGHG
,IWKHFRQYHQWLRQDOUDGLRJUDSKVDUHQRUPDORULQFRQFOXVLYHWKHQDQRWKHU
LPDJLQJH[DPLQDWLRQVXFKDVDQ05,VFDQRIWKHDUHDRUSRVVLEO\DELRSV\RIWKH
OHVLRQPD\EHQHHGHG
0HWDVWDWLFERQHGLVHDVHXVXDOO\SUHVHQWVZLWKDSDWWHUQRIPXOWLSOH
DV\PPHWULFIRFDODUHDVRILQFUHDVHGXSWDNHKRWVSRWVRQERQHVFDQV
(YHQO\WLFPHWDVWDVHVHJWKRVHFDXVHGE\EURQFKRJHQLFFDUFLQRPDXVXDOO\SURGXFH
HQRXJKRVWHREODVWLFUHVSRQVHWREHSRVLWLYHRQDERQHVFDQ)LJI

)LJXUH
0HWDVWDVHVWRERQH
0HWDVWDWLFERQHGLVHDVHXVXDOO\SUHVHQWVZLWKDSDWWHUQRIPXOWLSOHDV\PPHWULFIRFDODUHDVRI
LQFUHDVHGXSWDNHKRWVSRWVRQERQHVFDQVZKLWHDUURZV(YHQO\WLFPHWDVWDVHVHJWKRVH
FDXVHGE\EURQFKRJHQLFFDUFLQRPDXVXDOO\SURGXFHHQRXJKRVWHREODVWLFUHVSRQVHWREHSRVLWLYH
RQDERQHVFDQ7KLVSDWLHQWKDGPHWDVWDWLFEUHDVWFDUFLQRPDDQGKDGGLIIXVHVNHOHWDOPHWDVWDVHV
LQFOXGLQJWKHULEVSHOYLVDQGVSLQH

7KHLPSRUWDQWH[FHSWLRQLVPXOWLSOHP\HORPD%RQHVFDQVZLOOIUHTXHQWO\EH
QHJDWLYHEHFDXVHRIWKHDOPRVWSXUHO\O\WLFQDWXUHRIPXOWLSOHP\HORPDXQOHVVWKHUHLV
DQDVVRFLDWHGSDWKRORJLFIUDFWXUH&RQYHQWLRQDOUDGLRJUDSKVRIWKHD[LDODQGSUR[LPDO
DSSHQGLFXODUVNHOHWRQDERQHRUPHWDVWDWLFVXUYH\PD\EHPRUHXVHIXOLQWKLV
GLVHDVHWKDQDERQHVFDQ)LJI

)LJXUH
0XOWLSOHP\HORPDRQFRQYHQWLRQDOUDGLRJUDSK\
%RQHVFDQVZLOOIUHTXHQWO\EHQHJDWLYHLQPXOWLSOHP\HORPDEHFDXVHRIWKHDOPRVWSXUHO\O\WLF
QDWXUHRIWKHOHVLRQVVROLGEODFNDUURZXQOHVVWKHUHLVDQDVVRFLDWHGSDWKRORJLFIUDFWXUH
&RQYHQWLRQDOUDGLRJUDSKVRIWKHD[LDODQGSUR[LPDODSSHQGLFXODUVNHOHWRQPRVWRIWHQFDOOHGD
ERQHRUPHWDVWDWLFVXUYH\PD\EHPRUHGLDJQRVWLFLQWKLVGLVHDVHWKDQDERQHVFDQ

7ZRRWKHUDEQRUPDOSDWWHUQVRIXSWDNHWKDWFDQEHVHHQZLWKDERQHVFDQLQFOXGH
SKRWRSHQLFOHVLRQVDQGVXSHUVFDQV
3KRWRSHQLFOHVLRQVSKRWRQGHILFLHQWOHVLRQVFROGVSRWVDUHDUHDVRI
DEQRUPDOO\GLPLQLVKHGRUDEVHQWUDGLRWUDFHUXSWDNHRQWKHERQHVFDQ7KHVHPLJKWEH
FDXVHGE\DQLQWHUUXSWLRQRIWKHEORRGVXSSO\VRWKDWQRUDGLRSKDUPDFHXWLFDOFDQ
UHDFKWKHDUHDHJDYDVFXODUQHFURVLVRUZKHQDSURFHVVLVVRGHVWUXFWLYHQRERQH
IRUPLQJHOHPHQWVUHPDLQHJUHQDORUWK\URLGPHWDVWDVHV)LJI

)LJXUH
3KRWRSHQLFDEQRUPDOLW\
3KRWRSHQLFOHVLRQVSKRWRQGHILFLHQWOHVLRQVFROGVSRWVDUHDUHDVRIDEQRUPDOO\GLPLQLVKHGRU
DEVHQWUDGLRWUDFHUXSWDNHRQWKHERQHVFDQ7KH\FDQEHSURGXFHGE\OHVLRQVVXFKDVDYDVFXODU
QHFURVLVRUZKHQDSURFHVVLVVRGHVWUXFWLYHQRERQHIRUPLQJHOHPHQWVUHPDLQHJUHQDORU
WK\URLGPHWDVWDVHV7KH\FDQDOVREHSURGXFHGE\DSURVWKHVLVZKLFKFDQREYLRXVO\QRWH[WUDFW
WKHUDGLRWUDFHUDVQRUPDOERQHGRHV,QWKLVFDVHDSKRWRSHQLFDUHDLVVHHQLQWKHULJKWNQHH
ZKLWHFLUFOHFRPSDUHGWROHIWNQHHZKLWHDUURZ$SURGXFHGE\DPHWDOOLFNQHHUHSODFHPHQW
VHHQEHWWHURQWKHFRQYHQWLRQDOUDGLRJUDSKGDVKHGFLUFOHLQ%

6XSHUVFDQVDUHSURGXFHGZKHQWKHUHLVGLIIXVHDQGUHODWLYHO\XQLIRUPXSWDNH
RIUDGLRLVRWRSHWKURXJKRXWWKHVNHOHWRQ7KLVPRVWRIWHQRFFXUVZKHQWKHUHLV
H[WHQVLYHLQYROYHPHQWZLWKPHWDVWDWLFGLVHDVHEXWFDQDOVREHVHHQLQERQHVZLWK
GLIIXVHO\KLJKWXUQRYHUUDWHVVXFKDVLQK\SHUSDUDWK\URLGLVP
$WILUVWJODQFHDVXSHUVFDQPD\PLPLFWKHDSSHDUDQFHRIDQRUPDO
ERQHVFDQ7KHFOXHWRWKLVDEQRUPDOLW\LVGHFUHDVHGRUDEVHQWXSWDNHLQ
WKHNLGQH\VEHFDXVHVRPXFKRIWKHUDGLRSKDUPDFHXWLFDOLVH[WUDFWHGE\WKH
ERQHYHU\OLWWOHUHDFKHVWKHNLGQH\VLQDVXSHUVFDQ3URVWDWHFDUFLQRPDPD\OHDG
WRWKHDSSHDUDQFHRIDVXSHUVFDQ)LJI

)LJXUH
6XSHUVFDQ
6XSHUVFDQVDUHSURGXFHGZKHQWKHUHLVGLIIXVHDQGUHODWLYHO\XQLIRUPXSWDNHRIUDGLRLVRWRSH
EHFDXVHRIDKLJKUDWHRIERQHWXUQRYHUHVSHFLDOO\LQERQHVH[WHQVLYHO\LQYROYHGE\
PHWDVWDWLFGLVHDVH$WILUVWJODQFHDVNHOHWRQFRPSOHWHO\LQILOWUDWHGE\WXPRUVXFKDVLQWKLV
VFDQPD\PLPLFDQRUPDOERQHVFDQ7KHFOXHWRWKHDEQRUPDOLW\LVGHFUHDVHGRUDEVHQW
XSWDNHLQWKHNLGQH\VZKLWHRYDOEHFDXVHVRPXFKRIWKHUDGLRSKDUPDFHXWLFDOLVH[WUDFWHG
E\WKHERQHYHU\OLWWOHUHDFKHVWKHNLGQH\VLQDVXSHUVFDQ7KLVSDWLHQWKDGPHWDVWDWLF
SURVWDWHFDUFLQRPDZKLFKLVDFRPPRQFDXVHRIDVXSHUVFDQ7KHUDGLRWUDFHUZDVLQMHFWHG
LQWRDULJKWDQWHFXELWDOYHLQVROLGZKLWHDUURZDQGWUDFHURXWOLQHVXULQHH[FUHWHGLQWRWKH
SDWLHQW
V)ROH\FDWKHWHUGRWWHGZKLWHDUURZ

%RQHVFDQVPD\EHSRVLWLYHZLWKLQKRXUVDIWHUDIUDFWXUH'HSHQGLQJRQWKH
IUDFWXUH
VUDWHRIKHDOLQJWKHVFDQPD\UHYHUWWRQRUPDOLQDVOLWWOHDVPRQWKVRUPD\
UHPDLQDEQRUPDOIRUHYHU)LJI

)LJXUH
6WUHVVIUDFWXUH
$6WUHVVIUDFWXUHVPD\EHGLIILFXOWRULPSRVVLEOHWRYLVXDOL]HRQFRQYHQWLRQDOUDGLRJUDSKVGRQH
VRRQDIWHUWKHLQMXU\ZKLWHFLUFOHVKRZVDQRUPDOPHWDWDUVDOGD\VDIWHUSDLQEHJDQ%%RQH
VFDQVPD\EHSRVLWLYHDVHDUO\DVKRXUVDIWHUDIUDFWXUHDQGFDQEHHVSHFLDOO\KHOSIXOLQ
GHWHFWLQJRFFXOWVWUHVVIUDFWXUHVE\GHPRQVWUDWLQJPDUNHGO\LQFUHDVHGXSWDNHLQWKHDIIHFWHGERQH
ZKLWHDUURZSRLQWVWRPHWDWDUVDO&7KUHHZHHNVDIWHUWKHLQMXU\VHHQLQ$H[WHQVLYHH[WHUQDO
FDOORXVIRUPDWLRQLVVHHQDURXQGWKHKHDOLQJIUDFWXUHEODFNFLUFOH

2VWHRP\HOLWLV
$WULSOHSKDVHERQHVFDQPD\EHGRQHWRGLIIHUHQWLDWHFHOOXOLWLVIURPDGMDFHQW

RVWHRP\HOLWLV,PDJHVDUHREWDLQHGZLWKLQWKHILUVWPLQXWHDIWHULQMHFWLRQIORZ
SKDVHDERXWPLQXWHVDIWHULQMHFWLRQEORRGSRRORUWLVVXHSKDVHDQGWKHQ
WRKRXUVDIWHULQMHFWLRQGHOD\HGRUVNHOHWDOSKDVH)LJI

)LJXUH
1RUPDOWULSOHSKDVHERQHVFDQNQHHV
7KLVLVD\HDUROGSDWLHQWVRWKHJURZWKSODWHVWDNHXSUDGLRWUDFHUQRUPDOO\ZKLWHDUURZV
,PDJHVDUHREWDLQHGZLWKLQWKHILUVWPLQXWHDIWHULQMHFWLRQ$IORZSKDVHDERXWPLQXWHVDIWHU
LQMHFWLRQ%EORRGSRRORUWLVVXHSKDVHDQGWKHQWRKRXUVDIWHULQMHFWLRQ&GHOD\HGRU
VNHOHWDOSKDVH)ORZLVQRUPDOO\HTXDOELODWHUDOO\WKHWUDFHUWKHQVKRZVDFWLYLW\LQWKHVRIWWLVVXHV
DQGLVTXLFNO\H[WUDFWHGE\WKHERQHFOHDULQJIURPWKHVRIWWLVVXHVE\WKHGHOD\HGLPDJHV

&HOOXOLWLVZLOOGHPRQVWUDWHLQFUHDVHGXSWDNHLQWKHVRIWWLVVXHRQERWKWKH
WLVVXHSKDVHDQGWKHVNHOHWDOSKDVH)LJI

)LJXUH
7ULSOHSKDVHERQHVFDQFHOOXOLWLV
$7KHUHLVLQFUHDVHGIORZWRWKHOHIWDQNOHVKRZQRQWKHIORZSKDVHVROLGZKLWHDUURZV%
,QFUHDVHGXSWDNHLVDJDLQVHHQRQWKHEORRGSRROSKDVHLQWKHVRIWWLVVXHVGRWWHGZKLWHDUURZV
&2QWKHGHOD\HGSKDVHWKHLQFUHDVHGXSWDNHLVDJDLQVHHQLQWKHVRIWWLVVXHVRIWKHDQNOHEXWLV
QRWORFDOL]HGWRWKHERQHLWVHOIEODFNDUURZV2VWHRP\HOLWLVZRXOGVKRZSURJUHVVLYHXSWDNHLQWKH
ERQHDQGFOHDUDQFHIURPWKHVRIWWLVVXHVRQWKHGHOD\HGSKDVH

2VWHRP\HOLWLVZLOOVKRZFOHDUDQFHRIWKHWUDFHUIURPWKHVRIWWLVVXHVZLWK
SURJUHVVLYHXSWDNHLQWKHERQHRQWKHVNHOHWDOSKDVH)LJI

)LJXUH
7ULSOHSKDVHERQHVFDQRVWHRP\HOLWLV
,QFUHDVHGUDGLRWUDFHUXSWDNHLVVHHQLQVHTXHQWLDOLPDJHVRIWKHIORZSKDVHVROLGZKLWHDUURZVWLVVXHSKDVH
VROLGEODFNDUURZDQGORFDOL]HGWRWKHERQHRIWKHNQHHLQWKHGHOD\HGSKDVHGRWWHGZKLWHDUURZ7KLV
SDWLHQWKDGDWRWDONQHHSURVWKHVLVWKDWKDGEHFRPHLQIHFWHG

3XOPRQDU\9HQWLODWLRQ3HUIXVLRQ6FDQVIRU3XOPRQDU\(PEROLVP
,PPRELOL]DWLRQXVXDOO\IROORZLQJVXUJHU\LVWKHULVNIDFWRUPRVWRIWHQDVVRFLDWHGZLWK
SXOPRQDU\HPEROLVP2WKHUNQRZQULVNIDFWRUVLQFOXGHPDOLJQDQF\WKURPERSKOHELWLV
WUDXPDWRWKHORZHUH[WUHPLWLHVDQGVWURNH
&7SXOPRQDU\DQJLRJUDSK\&73$KDVODUJHO\UHSODFHGQXFOHDUPHGLFLQH
YHQWLODWLRQSHUIXVLRQ94VFDQVDVWKHPRGDOLW\RIFKRLFHLQGLDJQRVLQJSXOPRQDU\

WKURPERHPEROLVP
9HQWLODWLRQSHUIXVLRQVFDQVDUHXVHGSULPDULO\LI&73$LVQRWDYDLODEOHRULIWKHSDWLHQW
KDVDFRQWUDLQGLFDWLRQWRWKHDGPLQLVWUDWLRQRILQWUDYHQRXVLRGLQDWHGFRQWUDVWPDWHULDOVXFK
DVLPSDLUHGUHQDOIXQFWLRQRUVHYHUHDOOHUJ\WRFRQWUDVW
&KHVWUDGLRJUDSKVVKRXOGEHREWDLQHGWRDLGLQWKHLQWHUSUHWDWLRQRIWKH94VFDQDQGWR
UXOHRXWDQRWKHUFDXVHRIWKHSDWLHQW
VV\PSWRPVEHVLGHVSXOPRQDU\HPEROLVP,QPRVW
FDVHVRISXOPRQDU\HPEROLVPWKHLQLWLDOFKHVWUDGLRJUDSKLVQRUPDO)LJI

)LJXUH
&KHVWUDGLRJUDSKLQSXOPRQDU\HPEROLVP
&KHVWUDGLRJUDSKVVKRXOGEHREWDLQHGWRUXOHRXWDQRWKHUFDXVHRIWKHSDWLHQW
VV\PSWRPVEHVLGHV
SXOPRQDU\HPEROLVPDQGWRDLGLQWKHLQWHUSUHWDWLRQRIWKHQXFOHDUVFDQ,QPRVWFDVHVRISXOPRQDU\
HPEROLVPWKHLQLWLDOFKHVWUDGLRJUDSKLVQRUPDORUGHPRQVWUDWHVQRQVSHFLILFILQGLQJVVXFKDVWKHGLVFRLG
DWHOHFWDVLVVXEVHJPHQWDODWHOHFWDVLVVHHQLQWKLVSDWLHQWEODFNDUURZV

,IWKHFKHVWUDGLRJUDSKLVQRUPDOWKHQ94VFDQQLQJPD\EHGLDJQRVWLF,IWKHFKHVW
UDGLRJUDSKLVDEQRUPDOD&73$LVXVXDOO\SHUIRUPHG
7KHSXOPRQDU\SHUIXVLRQVWXG\LVSHUIRUPHGXVLQJWHFKQHWLXPP
PDFURDJJUHJDWHGDOEXPLQ0$$7KHUDGLRLVRWRSHLVWHFKQHWLXPPDQGWKH
SKDUPDFHXWLFDOWRZKLFKLWLVERXQGLVWKHPDFURDJJUHJDWHGDOEXPLQ7KH
UDGLRSKDUPDFHXWLFDOLVWKHQLQMHFWHGLQWUDYHQRXVO\
0DFURDJJUHJDWHGDOEXPLQLVSUHSDUHGE\KHDWLQJKXPDQVHUXPDOEXPLQ,WFDQEH
SURGXFHGWRDSDUWLFOHVL]HWKDWLVH[WUDFWHGRUPRUHGXULQJLWVSDVVDJHWKURXJK
WKHSXOPRQDU\YDVFXODWXUH$OWKRXJKDQDYHUDJHRIDERXW0$$SDUWLFOHVDUH
LQMHFWHGRQO\DERXWLQDOXQJFDSLOODULHVDUHRFFOXGHGZLWKDXVXDOLQMHFWLRQVRWKH
SDWLHQWH[SHULHQFHVQRV\PSWRPVIURPWKHLQMHFWLRQ
,PDJHVRIWKHOXQJVDUHREWDLQHGLQPXOWLSOHSRVLWLRQVHJDQWHULRUSRVWHULRU
ULJKWDQGOHIWODWHUDODQGREOLTXHSURMHFWLRQVDVVRRQDVWKHUDGLRSKDUPDFHXWLFDOLV

LQMHFWHG
7KHQRUPDOSHUIXVLRQVFDQZLOOVKRZXQLIRUPXSWDNHWKURXJKRXWWKHOXQJVZLWK
SKRWRSHQLFDUHDVQRUPDOO\VHHQLQWKHUHJLRQRIWKHKLODDQGWKHKHDUWHVSHFLDOO\RQWKH
DQWHULRUSURMHFWLRQ)LJI

)LJXUH
1RUPDOOXQJSHUIXVLRQVFDQ
7KHQRUPDOSHUIXVLRQVFDQZLOOVKRZXQLIRUPXSWDNHWKURXJKRXWWKHOXQJVZLWKSKRWRSHQLFDUHDVQRUPDOO\
VHHQLQWKHUHJLRQRIWKHKLODDQGWKHKHDUW+HVSHFLDOO\RQWKHDQWHULRUSURMHFWLRQ7KHOXQJVDUH
LPDJHGLQPXOWLSOHSURMHFWLRQVGXULQJDOXQJVFDQWREHWWHUGHPRQVWUDWHVPDOOSHUIXVLRQDEQRUPDOLWLHV

,IWKHSHUIXVLRQVWXG\LVDEQRUPDOWKHQWKHYHQWLODWLRQVFDQLVSHUIRUPHGZLWK
WKHSDWLHQWEUHDWKLQJHLWKHUUDGLRDFWLYH[HQRQNU\SWRQJDVRUDQDHURVROODEHOHG
ZLWKWHFKQHWLXPP
,QDQRUPDOYHQWLODWLRQVFDQWKHUDGLRWUDFHUZDVKHVLQWRWKHOXQJVKRPRJHQHRXVO\
XVXDOO\DIWHUWKHILUVWGHHSEUHDWK0RVWRIWKHUDGLRWUDFHUZLOOQRUPDOO\ZDVKRXWRIWKH
OXQJVZLWKLQWZRPLQXWHV)LJI

)LJXUH
1RUPDOOXQJYHQWLODWLRQVFDQILUVWEUHDWKWKURXJKZDVKRXW
,QDQRUPDOYHQWLODWLRQVFDQWKHUDGLRWUDFHUZDVKHVLQWRWKHOXQJVKRPRJHQHRXVO\XVXDOO\DIWHURQH
GHHSEUHDWKIDUOHIWLPDJH0RVWRIWKHUDGLRWUDFHUZLOOQRUPDOO\ZDVKRXWRIWKHOXQJVZLWKLQWZR
PLQXWHVIDUULJKWLPDJH7KHVHIRXULPDJHVVKRZQRUPDOKRPRJHQHRXVZDVKLQIROORZHGE\QRUPDO
UDSLGZDVKRXW

3XOPRQDU\HPEROLVKRXOGSURGXFHDVHJPHQWDOPLVPDWFKRQWKH94VFDQLQ
ZKLFKYHQWLODWLRQLVPDLQWDLQHGEXWSHUIXVLRQLVDEVHQW'HSHQGLQJRQWKHQXPEHU
DQGVL]HRIGHIHFWVFRUUHVSRQGHQFHEHWZHHQWKHYHQWLODWLRQDQGSHUIXVLRQVFDQVDQGWKH

DSSHDUDQFHRIWKHFKHVWUDGLRJUDSKWKHUHVXOWVRIWKHOXQJVFDQDUHFDWHJRUL]HGDVEHLQJ
QRUPDOORZLQWHUPHGLDWHRUKLJKSUREDELOLW\IRUSXOPRQDU\HPEROLVP)LJ
I

)LJXUH
3XOPRQDU\HPEROXVRQYHQWLODWLRQSHUIXVLRQ94VFDQ
$7KHYHQWLODWLRQVFDQLVQRUPDO%$ODUJHSKRWRSHQLFGHIHFWLVVHHQDWWKHULJKWOXQJEDVHZKLWH
DUURZVRQWKHSHUIXVLRQVFDQ7KHUHLVDPLVPDWFKEHWZHHQWKHYHQWLODWLRQDQGSHUIXVLRQVFDQVVLQFH
WKHDEQRUPDOLW\LVSUHVHQWRQRQHEXWQRWWKHRWKHU3XOPRQDU\HPEROLVKRXOGSURGXFHDVHJPHQWDO
PLVPDWFKOLNHWKLVRQWKH94VFDQLQZKLFKYHQWLODWLRQLVPDLQWDLQHGEXWSHUIXVLRQLVDEVHQW

1RWVXUSULVLQJO\WKHFRPELQDWLRQRIDUHODWLYHO\ORZFOLQLFDOVXVSLFLRQRI3(DQGD
ORZSUREDELOLW\OXQJVFDQHIIHFWLYHO\H[FOXGHV3(ZLOODFWXDOO\KDYHDSXOPRQDU\
HPEROLVP7KHFRPELQDWLRQRIDKLJKFOLQLFDOVXVSLFLRQIRU3(DQGDKLJKSUREDELOLW\
94VFDQDOPRVWFHUWDLQO\LQGLFDWHVWKHSUHVHQFHRID3(!8QIRUWXQDWHO\WKHUH
VWLOOLVDPDMRULW\RISDWLHQWVUHPDLQLQJZKRKDYHDQLQWHUPHGLDWHFOLQLFDOOLNHOLKRRGRI
KDYLQJ3(DQGLQWHUPHGLDWHOXQJVFDQILQGLQJVZKRPD\UHTXLUHDQRWKHUW\SHRIVWXG\
$QXPEHURIFOLQLFDOWULDOVFDOOHGWKH3URVSHFWLYH,QYHVWLJDWLRQRI3XOPRQDU\
(PEROLVP'LDJQRVLV3,23('WULDOVKDYHEHHQSHUIRUPHGWRWU\WRGHWHUPLQHWKHPRVW
HIILFDFLRXVPHDQVRIDFFXUDWHO\GLDJQRVLQJSXOPRQDU\HPEROLVP
7KHUHFRPPHQGDWLRQVIURPWKH3,23('WULDOVDWWHPSWWRFRPELQHFOLQLFDODVVHVVPHQWDQG
GLDJQRVWLFWHVWLQJLQYDULRXVFOLQLFDOVFHQDULRVWRSURYLGHWKHPRVWHIIHFWLYHPHDQVRI

DFFXUDWHO\GLDJQRVLQJSXOPRQDU\HPEROLVP

&DUGLDF6FDQV
1XFOHDUP\RFDUGLDOVFDQVDUHXVHGWRGHWHFWP\RFDUGLDOLVFKHPLDDQGLQIDUFWLRQ7KH
H[DPLQDWLRQVW\SLFDOO\FRQVLVWRIERWKSHUIXVLRQDQG(&*JDWHGZDOOPRWLRQVWXGLHV7KH
VWXGLHVFDQDOVRGHWHUPLQHOHIWYHQWULFXODUHMHFWLRQIUDFWLRQUHJLRQDOZDOOPRWLRQDQGHQG
V\VWROLFOHIWYHQWULFXODUYROXPH
1XFOHDUP\RFDUGLDOLPDJLQJLVDVVRFLDWHGZLWKDQH[FHOOHQWSUHGLFWLYHYDOXHLQWKDW
QRUPDOVFDQUHVXOWVDUHDVVRFLDWHGZLWKDQDQQXDOUDWHRIVHYHUHFDUGLDFHYHQWVP\RFDUGLDO
LQIDUFWLRQRUFDUGLDFGHDWKRIOHVVWKDQ
0\RFDUGLDOSHUIXVLRQVFDQQLQJ
0\RFDUGLDOSHUIXVLRQLPDJLQJUHVWVRQWKHWZLQSUHVXPSWLRQVWKDWILUVWO\D
UDGLRSKDUPDFHXWLFDOFDQEHGHOLYHUHGWRDFHOORQO\LIWKHUHLVDGHTXDWHSHUIXVLRQRI
WKDWFHOODQGVHFRQGO\WKDWWKHP\RFDUGLDOFHOOLWVHOIPXVWEHYLDEOHWRWDNHXSWKH
UDGLRWUDFHU$EQRUPDOLWLHVRIHLWKHUSHUIXVLRQRUYLDELOLW\ZLOOWKHUHIRUH
GLVSOD\GHFUHDVHGXSWDNHRIUDGLRWUDFHU
$QXFOHDUP\RFDUGLDOVFDQLVXVXDOO\SHUIRUPHGZLWKDVWUHVVWHVWFRQVLVWLQJRID
UHVWLQJVFDQDQGDSRVWVWUHVVVFDQ7KHVWUHVVPD\EHSKDUPDFRORJLFHJ
SURGXFHGE\DGHQRVLQHGREXWDPLQHRUGLS\ULGDPROHRUE\H[HUFLVHHJWUHDGPLOO
RUH[HUFLVHELF\FOH0RVWVWXGLHVLQYROYHH[HUFLVHUDWKHUWKDQSKDUPDFRORJLF
VWUHVV
([HUFLVHVWUHVVLVFDUULHGRXWXVLQJDJUDGHGLQFUHDVHLQHLWKHUWUHDGPLOOH[HUFLVH
RUDQH[HUFLVHELF\FOHXVXDOO\XSWRRIDSDWLHQW
VSHDNKHDUWUDWHLQRUGHUWR
REWDLQDQDGHTXDWHVWXG\3KDUPDFRORJLFVWUHVVPD\EHXVHGLQSDWLHQWVZLWK
DUWKULWLVRULQSRRUSK\VLFDOFRQGLWLRQ5HVWRQO\VWXGLHVPD\EHGRQHLQSDWLHQWVIRU
ZKRPERWKSKDUPDFRORJLFDQGH[HUFLVHVWUHVVDUHFRQWUDLQGLFDWHG
7KHULVNDVVRFLDWHGZLWKWKHWHVWFRPHVIURPWKHVWUHVVSRUWLRQUDWKHUWKDQWKH
UDGLRDFWLYLW\RIWKHLVRWRSH$ERXWLQGHDWKVRFFXUDVDUHVXOWRIWKHVWUHVV
DQGDERXWLQSDWLHQWVKDYHDP\RFDUGLDOLQIDUFWLRQIURPWKHWHVW
7KHUDGLRSKDUPDFHXWLFDOVXVHGLQVWUHVVWHVWVLQFOXGHWHFKQHWLXPPVHVWDPLEL
&DUGLROLWHWKDOOLXPRU7FPWHERUR[LPH,PDJLQJSURWRFROVDUH
GLIIHUHQWIRUWKHGLIIHUHQWDJHQWVDQGIRUWKHHTXLSPHQWE\ZKLFKLPDJHVDUHDFTXLUHG
,PDJHVDUHGLVSOD\HGLQDVWDQGDUGL]HGIRUPDWXVXDOO\LQFRORU,QWKHVKRUWD[LV
YLHZWKHZDOOVHJPHQWVQRUPDOO\IRUPDFLUFOH,QWKHYHUWLFDOORQJD[LVYLHZ
WKHUHLVDVKDSHZLWKWKHRSHQLQJWRWKHULJKW,QWKHKRUL]RQWDOORQJD[LVYLHZWKH
RSHQLQJRIWKHLVGRZQ)LJI:DOOWKLFNQHVVLVJHQHUDOO\XQLIRUPLQWKH
VDPHLPDJH

)LJXUH
1RUPDOFDUGLDFVFDQ
,PDJHVDUHGLVSOD\HGLQDVWDQGDUGL]HGIRUPDWXVXDOO\LQFRORU,QWKHVKRUWD[LVYLHZWKHZDOO
VHJPHQWVIRUPDFLUFOHZKLWHFLUFOH,QWKHYHUWLFDOORQJD[LVYLHZWKHUHLVDVKDSHZLWKWKH
RSHQLQJWRWKHULJKWVROLGZKLWHDUURZ,QWKHKRUL]RQWDOORQJD[LVYLHZWKHRSHQLQJRIWKH
SRLQWVGRZQZDUGGRWWHGZKLWHDUURZ,QDQ\JLYHQLPDJHZDOOWKLFNQHVVLVXQLIRUP%\
FRQYHQWLRQWKHILUVWURZRIHDFKVHWRILPDJHVLVWKHVWUHVVSRUWLRQRIWKHWHVWDQGWKHVHFRQGURZ
LVWKHUHVWSRUWLRQRIWKHWHVWIRUWKRVHVDPHLPDJHV1RUPDOO\HDFKSDLUHGVHWRIVWUHVVDQGUHVW
LPDJHVORRNVWKHVDPHZKLWHUHFWDQJOHV

:DOOPRWLRQ
0\RFDUGLDOZDOOPRWLRQLVDVVHVVHGXVLQJ(&*JDWHG63(&7LPDJHV(&*JDWLQJ
DOORZVIRUJDWHGLPDJHVWREHUHSOD\HGLQDFRQWLQXRXVORRSFLQHORRSWKDWDLGVLQWKH
GLVSOD\RIZDOOPRWLRQ7HFKQHWLXPPODEHOHGUHGEORRGFHOOV5%&VFDQEH
XVHGDVDQLPDJLQJDJHQWWRDVVHVVZDOOPRWLRQ
(&*JDWLQJDOVRFDOOHGFDUGLDFWULJJHULQJLVDWHFKQLTXHXVHGLQLPDJLQJ
VWXGLHVWRWLPHWKHDFTXLVLWLRQRIGDWDEDVHGRQDSXOVHGHULYHGIURPWKH
SDWLHQW
V(&*WUDFLQJ$FTXLULQJGDWDIURPDVLQJOHFDUGLDFF\FOHZRXOGQRWSURYLGH
HQRXJKFRXQWVWRSURGXFHDGLDJQRVWLFLPDJHIRUQXFOHDUFDUGLDFVWXGLHVVRFRXQWVDUH
DFTXLUHGDWWKHVDPHSKDVHRIWKHFDUGLDFF\FOHRYHUGR]HQVRUKXQGUHGVRIKHDUWEHDWV
7KHW\SHRIVFDQWKDWGHPRQVWUDWHVZDOOPRWLRQDQGIURPZKLFKWKHFDUGLDFHMHFWLRQ
IUDFWLRQFDQEHFDOFXODWHGLVFDOOHGD08*$VFDQ08*$VWDQGVIRU08OWLSOH

*DWHG$FTXLVLWLRQ,WLVDOVRFDOOHGJDWHGEORRGSRROLPDJLQJ08*$VFDQVFDQ
EHSHUIRUPHGDWUHVWRUDIWHUVWUHVVRUERWK
08*$VFDQVPD\EHXVHGLQSDWLHQWVZLWKFRQJHVWLYHKHDUWIDLOXUHWRDVVHVVFDUGLDF
IXQFWLRQLQWKRVHSDWLHQWVDERXWWRXQGHUJRFKHPRWKHUDS\ZLWKDFDUGLRWR[LFGUXJWR
DVVHVVWKHHIIHFWLYHQHVVRIFDUGLDFVXUJHU\RUGUXJVDQGIRURXWFRPHSUHGLFWLRQLQ
FRURQDU\DUWHU\GLVHDVH
,QQRUPDOSHRSOHWKHOHIWYHQWULFXODUHMHFWLRQIUDFWLRQ/9()IDOOVZLWKLQD
UDQJHEHWZHHQWR:LWKVWUHVVWKH/9()PD\GHFUHDVHLQSDWLHQWVZLWK
FRURQDU\DUWHU\GLVHDVH7KHUHVKRXOGEHQRDEQRUPDOUHJLRQVRIFDUGLDFZDOOPRWLRQ
3DWLHQWVZLWKLQIDUFWLRQVPD\VKRZJOREDORUORFDODUHDVRIGHFUHDVHGPRWLRQDNLQHWLF
RUK\SRNLQHWLFUHJLRQVRURXWZDUGEXOJLQJRIWKHYHQWULFXODUZDOOGXULQJV\VWROH
G\VNLQHWLFUHJLRQV
$QXFOHDUVFDQDIWHUDP\RFDUGLDOLQIDUFWLRQFDQGHPRQVWUDWHZKHWKHUYLDEOH
P\RFDUGLXPLVSUHVHQWZKLFKLQWXUQKHOSVGHWHUPLQHZKHWKHUE\SDVVVXUJHU\
VWHQWLQJRUDQJLRSODVW\ZLOOEHPRVWHIIHFWLYHLQWUHDWPHQW)LJVDQGI

)LJXUH
/HIWDQWHULRUGHVFHQGLQJFRURQDU\DUWHU\LVFKHPLD
&RPSDUHWKHVHWVRILPDJHVLQWKHWZRUHFWDQJOHV7KHUHLVDZDOOGHIHFWRQWKHVWUHVVSRUWLRQVRIWKHWHVW

GRWWHGZKLWHDUURZVSRLQWWRWKLQQLQJRIWKHZDOOZKLFKLPSURYHVZLWKUHVWVROLGZKLWHDUURZV6LQFHWKHGHIHFW

UHYHUVHVZLWKUHVWWKLVLVPRUHFKDUDFWHULVWLFRILVFKHPLDWKDQLQIDUFW7KHGHIHFWLVLQWKHGLVWULEXWLRQRIWKHOHIW
DQWHULRUGHVFHQGLQJFRURQDU\DUWHU\

)LJXUH
%DVDOLQIHULRULQIDUFW
2QFHDJDLQFRPSDUHWKHSDLUVRIVWUHVVDQGUHVWLPDJHVLQWKHZKLWHUHFWDQJOHV7KHUHLVDIL[HGGHIHFWLQWKH
ZDOOZKLFKUHPDLQVRQERWKWKHVWUHVVGRWWHGZKLWHDUURZVDQGUHVWLQJLPDJHVVROLGZKLWHDUURZV7KHODFN
RIUHYHUVLELOLW\LVFRQVLVWHQWZLWKLQIDUFWLRQRIWKHLQIHULRUZDOO

7K\URLG6FLQWLJUDSK\
7K\URLGVFDQVDUHXVHGWRGHWHUPLQHWKHIXQFWLRQLQJRIWK\URLGQRGXOHVWRKHOS
GLIIHUHQWLDWH*UDYHV
GLVHDVHIURPWR[LFQRGXODUJRLWHU3OXPPHU
VGLVHDVHWRGLDJQRVH
WK\URWR[LFRVLVWRLPDJHPHWDVWDVHVIURPWK\URLGFDQFHUDQGVRPHWLPHVWRHVWDEOLVKD
PHGLDVWLQDOPDVVDVEHLQJWK\URLGLQRULJLQ
$WK\URLGVFDQLVDQLPDJHRIWKHWK\URLGJODQG7K\URLGVFDQVFDQEHFRPELQHG
ZLWKDPHDVXUHPHQWRIUDGLRDFWLYHWK\URLGXSWDNHZKLFKLVDPHDVXUHRIWKHJODQG
V
IXQFWLRQDODELOLW\WRFRQFHQWUDWHDQGFOHDULRGLQH
3DWLHQWVZLWKK\SHUWK\URLGLVPZLOOVKRZHOHYDWHGWK\URLGXSWDNHVZKHUHDVSDWLHQWV
ZLWKK\SRWK\URLGLVPZLOOVKRZGHFUHDVHGXSWDNHV7KHQRUPDOUDQJHRIWK\URLGXSWDNH

YDULHVEXWLVJHQHUDOO\EHWZHHQDQG5DGLRDFWLYHXSWDNHVWXGLHVKDYHEHHQODUJHO\
UHSODFHGE\EORRGWHVWVIRUWK\UR[LQH7DQGWK\URLGVWLPXODWLQJKRUPRQH76+
7K\URLGVFDQVDUHGRQHXVLQJHLWKHUUDGLRDFWLYHLRGLQHRUWHFKQHWLXPP
SHUWHFKQHWDWH%RWKLRGLQHDQGSHUWHFKQHWDWHDUHWUDSSHGLQWKHWK\URLGJODQG
7KHUDGLRSKDUPDFHXWLFDOLVPRVWFRPPRQO\DGPLQLVWHUHGE\PRXWKRUVRPHWLPHV
LQWUDYHQRXVO\
7KHQRUPDOWK\URLGJODQGLVEXWWHUIO\VKDSHGDQGLVKRPRJHQHRXVLQLWVXSWDNHRI
UDGLRWUDFHU1RGXOHVRILQFUHDVHGDFWLYLW\ZLOOVKRZLQFUHDVHGXSWDNHKRWQRGXOHV
FRPSDUHGWRWKHUHPDLQGHURIWKHWK\URLGZKRVHIXQFWLRQPD\EHVXSSUHVVHGE\WKHKRW
QRGXOH1RGXOHVRIGHFUHDVHGDFWLYLW\ZLOOVKRZGHFUHDVHGRUQRXSWDNHFROG
QRGXOHVUHODWLYHWRWKHUHPDLQGHURIWKHWK\URLGJODQG)LJI

)LJXUH
1RUPDOWK\URLGVFDQ
7KHQRUPDOWK\URLGJODQGLVEXWWHUIO\VKDSHGDQGLVKRPRJHQHRXVLQLWVXSWDNHRIUDGLRWUDFHU,WFRQVLVWV
RIULJKWDQGOHIWOREHVDQGDQLVWKPXVZKLWHDUURZWKDWMRLQVWKHWZR53DWLHQW
VULJKWVLGH

7K\URLGQRGXOHVDUHFRPPRQ7KH\DUHPRUHFRPPRQLQZRPHQWKDQPHQ7KH\
LQFUHDVHLQIUHTXHQF\ZLWKDGYDQFLQJDJHVRDVROLWDU\QRGXOHLQD\RXQJHUSHUVRQLV
RIPRUHFRQFHUQWKDQLQDQROGHULQGLYLGXDO
$ERXWRIDOOWK\URLGQRGXOHVDUHFROGDQGDUHKRWRUZDUP7KH
RYHUZKHOPLQJSHUFHQWDJHRIFROGQRGXOHVDUHEHQLJQZKLOHRIKRW
QRGXOHVDUHEHQLJQ8OWUDVRXQGFRPELQHGZLWKILQHQHHGOHDVSLUDWLRQLVXVHGWR
GHILQLWLYHO\GLDJQRVHWK\URLGFDQFHULQFROGQRGXOHV)LJI

)LJXUH
+RWDQGFROGQRGXOHVRQWK\URLGVFDQ
7K\URLGQRGXOHVDUHFRPPRQIUHTXHQWO\PXOWLSOHDQGRFFXUHVSHFLDOO\LQROGHUZRPHQ$VROLWDU\QRGXOH
LQD\RXQJHUSHUVRQLVRIPRUHFRQFHUQIRUPDOLJQDQF\WKDQLQDQROGHULQGLYLGXDO$ERXWRIDOO
WK\URLGQRGXOHVDUHFROGDQGDUHKRWRUZDUP7KLVLVDPXOWLQRGXODUJODQGZLWKDKRWQRGXOHVROLG
ZKLWHDUURZLQWKHULJKWOREHDQGDFROGQRGXOHGRWWHGZKLWHDUURZRFFXS\LQJWKHOHIWOREH7KHVH
OHVLRQVDUHEHQLJQ

$QHQODUJHGWK\URLGJODQGLVFDOOHGDJRLWHU7KHUHDUHPDQ\FDXVHVRIDWK\URLG
JRLWHULQFOXGLQJQRQWR[LFJRLWHUVPXOWLQRGXODUFROORLGJRLWHUV*UDYHV
GLVHDVH3OXPPHU
V
GLVHDVHWR[LFQRGXODUJRLWHUDQG+DVKLPRWR
VWK\URLGLWLV
,QQRQWR[LFPXOWLQRGXODUFROORLGJRLWHUVWKHJODQGLVHQODUJHGDQGWDNHVXS
UDGLRWUDFHUKHWHURJHQHRXVO\,Q*UDYHV
GLVHDVHWKHJODQGLVHQODUJHGZLWKXQLIRUP
DQGLQWHQVHLQFUHDVHGXSWDNH7KHWK\URLGPD\DOVREHHQODUJHGLQWKHHDUO\SKDVHRI
WK\URLGLWLV)LJI

)LJXUH
1RQWR[LFJRLWHU*UDYHV
DQGWK\URLGLWLVRQWK\URLGVFDQVRIGLIIHUHQWSDWLHQWV
$,QQRQWR[LFPXOWLQRGXODUFROORLGJRLWHUVWKHJODQGLVHQODUJHGDQGWDNHVXSUDGLRWUDFHU
KHWHURJHQHRXVO\%*UDYHV
GLVHDVHGHPRQVWUDWHVDQHQODUJHGJODQGZLWKXQLIRUPDQGLQWHQVH
GLVWULEXWLRQRIWKHWUDFHU7KHWK\URLGXSWDNHLVHOHYDWHGGXHWRK\SHUWK\URLGLVP&7KHWK\URLGPD\DOVR
EHHQODUJHGLQWKHHDUO\SKDVHRIWK\URLGLWLV7KHXSWDNHKHUHLVORZGXHWRK\SRWK\URLGLVP

7K\URLGFDQFHUW\SLFDOO\SUHVHQWVDVDGRPLQDQWVROLWDU\QRGXOH7KHSUHVHQFHRI
PXOWLSOHQRGXOHVUHGXFHVWKHOLNHOLKRRGRIPDOLJQDQF\)LJI

)LJXUH
7K\URLGFDUFLQRPD
7K\URLGFDQFHUW\SLFDOO\SUHVHQWVDVDGRPLQDQWVROLWDU\QRGXOH7KHSUHVHQFHRIPXOWLSOHQRGXOHV
UHGXFHVWKHOLNHOLKRRGRIPDOLJQDQF\7KHUHLVDVLQJOHODUJHFROGQRGXOHLQWKHULJKWORZHUSROHRIWKH
JODQGZKLWHDUURZ6LQFHPRVWFROGQRGXOHVDUHEHQLJQFRQILUPDWRU\XOWUDVRXQGZLWKDILQHQHHGOH
ELRSV\LVIUHTXHQWO\SHUIRUPHG

5DGLRLVRWRSHVFDQVFDQDOVRGHPRQVWUDWHPHWDVWDVHVIURPWK\URLGFDUFLQRPDGLVWDQW
IURPWKHJODQGLWVHOI)ROOLFXODUDQGSDSLOODU\WK\URLGFDUFLQRPDVPD\VKRZ
LQFUHDVHGWUDFHUXSWDNHLQWKHOXQJVO\PSKQRGHVDQGVNHOHWRQ)LJI

)LJXUH
3XOPRQDU\WK\URLGPHWDVWDVHVYLVXDOL]HGZLWKUDGLRLRGLQH
5DGLRLVRWRSHVFDQVFDQGHPRQVWUDWHPHWDVWDVHVIURPWK\URLGFDUFLQRPDGLVWDQWIURPWKHJODQGLWVHOI
HVSHFLDOO\LQIROOLFXODUDQGSDSLOODU\WK\URLGFDUFLQRPDV7KHVHLPDJHVDUHRIWKHFKHVWLQDSDWLHQWZKR
UHFHLYHGUDGLRLRGLQH7KHUHDUHPXOWLSOHIRFLRILQFUHDVHGUDGLRLRGLQHXSWDNHLQWKHOXQJVZKLWHDUURZV
PHWDVWDWLFIURPDSDSLOODU\FDUFLQRPDRIWKHWK\URLGQRWLPDJHGKHUH

5DGLRLRGLQHLVDOVRXVHGLQPXFKKLJKHUGRVHVWKDQIRUGLDJQRVWLFSXUSRVHVIRUWKHDEODWLRQ

RIWKHJODQGLQ*UDYHV
GLVHDVHDQGIRUWKHWUHDWPHQWRIWK\URLGFDQFHU,RGLQH,LV
XVXDOO\XWLOL]HGDVWKHUDGLRLVRWRSHIRUWUHDWPHQW5DGLRLRGLQHLVDOVRXVHGLQWKHWUHDWPHQW
RIWK\URLGFDUFLQRPDPHWDVWDVHVIURPSULPDU\WXPRUVWKDWGHPRQVWUDWHWKHDELOLW\WRWDNH
XSUDGLRLVRWRSH

+,'$6FDQV
&KROHVFLQWLJUDSK\LVSHUIRUPHGXVLQJWHFKQHWLXPPZKLFKZDVRULJLQDOO\FRXSOHG
WRLPLQRGLDFHWLFDFLG,'$7KLVZDVUHIHUUHGWRDVD+,'$VFDQLQZKLFKWKH+
VWDQGVIRUKHSDWLFRUKHSDWRELOLDU\(YHQWKRXJKRWKHUUDGLRSKDUPDFHXWLFDOVEHVLGHV
LPLQRGLDFHWLFDFLGPD\QRZEHXVHGIRUWKHWHVWLWLVVWLOORIWHQUHIHUUHGWRDVD+,'$VFDQ
7KH+,'$VFDQLVWKHPRVWIUHTXHQWO\XVHGQXFOHDUPHGLFLQHOLYHUVWXG\
+,'$VFDQVDUHJHQHUDOO\LQGLFDWHGLQFDVHVRIVXVSHFWHGDFXWHFKROHF\VWLWLVLQZKLFK
DQXOWUDVRXQGH[DPLQDWLRQPD\EHHTXLYRFDO7KH\DUHDOVRXVHGWRGHPRQVWUDWH
SRVWRSHUDWLYHELOLDU\OHDNV
7KHSDWLHQWKDVQRWKLQJE\PRXWKIRUWRKRXUVEHIRUHWKHVWXG\$IWHULQWUDYHQRXV
LQMHFWLRQWKHUDGLRSKDUPDFHXWLFDOELQGVWRSURWHLQLVWDNHQXSE\WKHOLYHUDQGWKHQUDSLGO\
H[FUHWHGIURPWKHOLYHUVLPLODUWRELOH
,QDQRUPDO+,'$VFDQWKHELOHGXFWVFRQWDLQUDGLRWUDFHUZLWKLQPLQXWHVDQG
WKHUHLVUDGLRWUDFHULQWKHGXRGHQXPE\PLQXWHVLQGLFDWLQJSDWHQF\RIWKHFRPPRQ
ELOHGXFW)LOOLQJRIWKHQRUPDOJDOOEODGGHURFFXUVZLWKLQWRPLQXWHVZKLFK
FRQILUPVWKHSDWHQF\RIWKHF\VWLFGXFW'HOD\HGLPDJHVLQVHYHUDOKRXUVDUHXVXDOO\REWDLQHG
WRUHGXFHIDOVHSRVLWLYHUHVXOWV)LJI

)LJXUH
1RUPDO+,'$VFDQ
,QDQRUPDO+,'$VFDQWKHELOHGXFWVVROLGZKLWHDUURZFRQWDLQUDGLRWUDFHUZLWKLQPLQXWHVDQG

WKHUHLVUDGLRWUDFHULQWKHGXRGHQXPDQGVPDOOERZHO6%E\PLQXWHVLQGLFDWLQJSDWHQF\RIWKH

FRPPRQELOHGXFW)LOOLQJRIWKHQRUPDOJDOOEODGGHUGRWWHGZKLWHDUURZRFFXUVZLWKLQWRPLQXWHV
ZKLFKFRQILUPVWKHSDWHQF\RIWKHF\VWLFGXFW'HOD\HGLPDJHVLQVHYHUDOKRXUVPD\EHREWDLQHGWR
UHGXFHIDOVHSRVLWLYHUHVXOWV53DWLHQW
VULJKWVLGH/OLYHU

([FHSWLQUDUHH[FHSWLRQVYLVXDOL]DWLRQRIWKHJDOOEODGGHUH[FOXGHVDFXWH
FDOFXORXVFKROHF\VWLWLV
&KROHVFLQWLJUDSK\LVYHU\VHQVLWLYHDQGH[WUHPHO\VSHFLILFIRUDFXWHFKROHF\VWLWLV
2QHRILWVGLVDGYDQWDJHVLVWKDWLWFDQWDNHVHYHUDOKRXUVWRSHUIRUPDQGDQDFXWHO\LOOSDWLHQW
PD\QHHGDGLDJQRVLVVRRQHU7RVKRUWHQWKHWLPHQHHGHGWRFRPSOHWHWKHVWXG\PRUSKLQH
VXOSKDWHFDQEHDGPLQLVWHUHGLQWUDYHQRXVO\0RUSKLQHFDXVHVFRQVWULFWLRQRIWKH
VSKLQFWHURI2GGLLQFUHDVLQJSUHVVXUHLQWKHFRPPRQGXFWDQGVSHHGLQJWKHILOOLQJRIWKH
F\VWLFGXFW7KHJDOOEODGGHUVKRXOGILOOQRUPDOO\ZLWKLQPLQXWHVRIPRUSKLQH
DGPLQLVWUDWLRQ)LJI

)LJXUH
+,'$VFDQLQFKROHF\VWLWLV
7KHJDOOEODGGHUGRHVQRWILOOZLWKUDGLRWUDFHU,QVWHDGWKHUHLVDSKRWRSHQLFDUHDRIWKHOLYHU/LQWKH
ORFDWLRQRIWKHJDOOEODGGHUGRWWHGZKLWHDUURZ7KHUHLVQRILOOLQJRIWKHF\VWLFGXFWEXWWKHUHLVILOOLQJRI
WKHFRPPRQGXFWVROLGZKLWHDUURZDQGUXQRIILQWRWKHVPDOOERZHO6%2EVWUXFWLRQRIWKHF\VWLFGXFW
DQGQRQILOOLQJRIWKHJDOOEODGGHULQDV\PSWRPDWLFSDWLHQWLVFRQVLVWHQWZLWKDFXWHFKROHF\VWLWLV5
3DWLHQW
VULJKWVLGH

&KROHVFLQWLJUDSK\LVDOVRXVHGWRGHPRQVWUDWHELOHOHDNVLQSDWLHQWVZKRKDYHXQGHUJRQH
ODSDURVFRSLFFKROHF\VWHFWRP\OLYHUWUDQVSODQWRUWUDXPD$IWHUWKHUDGLRSKDUPDFHXWLFDOLV
LQMHFWHGWKHDEGRPHQLVVFDQQHGWRLPDJHUDGLRWUDFHURXWVLGHRIWKHQRUPDOFRQILQHVRIWKH
ELOLDU\V\VWHP)LJI

)LJXUH
+,'$VFDQVKRZLQJELOHOHDN
&KROHVFLQWLJUDSK\LVDOVRXVHGWRGHPRQVWUDWHELOHOHDNVLQSDWLHQWVZKRKDYHXQGHUJRQHODSDURVFRSLF
FKROHF\VWHFWRP\OLYHUWUDQVSODQWRUWUDXPD$IWHUWKHUDGLRSKDUPDFHXWLFDOLVLQMHFWHGWKHDEGRPHQLVVFDQQHG
WRLPDJHUDGLRWUDFHURXWVLGHRIWKHQRUPDOFRQILQHVRIWKHELOLDU\V\VWHP,QWKLVSDWLHQWUDGLRWUDFHULVVHHQLQ
WKHJDOOEODGGHUIRVVDVROLGZKLWHDUURZDQGWKHEXOERIDGUDLQLQVHUWHGDWWKHVLWHRIWKHFKROHF\VWHFWRP\
GRWWHGZKLWHDUURZ9LVXDOL]DWLRQRIWKHWUDFHURXWVLGHRIWKHGXFWDOV\VWHPRUERZHOLVDQLQGLFDWLRQRIDELOH
OHDN53DWLHQW
VULJKWVLGH/OLYHU

*DVWURLQWHVWLQDO%OHHGLQJ6FDQV
/RFDOL]DWLRQRIEOHHGLQJIURPWKHORZHUJDVWURLQWHVWLQDOWUDFWFDQEHSUREOHPDWLFXVLQJ
HLWKHUHQGRVFRS\RULPDJLQJVWXGLHV
8WLOL]LQJWHFKQHWLXPPFRXSOHGWRUHGEORRGFHOOV5%&VWKHVLWHRIEOHHGLQJFDQ
EHORFDOL]HG$QLQLWLDOIORZVWXG\LVIUHTXHQWO\SHUIRUPHGDQGVWDWLFLPDJLQJRIWKH
DEGRPHQXVXDOO\ODVWVIRUDERXWPLQXWHV2QO\DERXWFFRIH[WUDYDVDWHGEORRGLV
QHHGHGIRUGHWHFWLRQ)LJI

)LJXUH
1RUPDOJDVWURLQWHVWLQDOEOHHGLQJVFDQ
7KHSDWLHQW
VRZQUHGEORRGFHOOVDUHODEHOHGZLWKDUDGLRWUDFHUDQGWKHDEGRPHQLVVFDQQHG$FWLYLW\
PD\QRUPDOO\EHIRXQGLQWKHKHDUW+OLYHU/DRUWDGRWWHGZKLWHDUURZDQGLOLDFDUWHULHVVROLG
ZKLWHDUURZV$EQRUPDOVWXGLHVZLOOVKRZDIRFXVRILQFUHDVHGDFWLYLW\LQWKHERZHOZKLFKZLOOPRYHRQ
VHULDOLPDJHVGXHWRWKHSHULVWDOWLFPRWLRQRIWKHJXW

$EQRUPDOVWXGLHVZLOOGHPRQVWUDWHDQH[WUDYDVFXODUEXWLQWUDOXPLQDOIRFXVRI
LQFUHDVHGUDGLRWUDFHUXSWDNHWKDWLQFUHDVHVRYHUWLPH6LQFHEORRGLUULWDWHVWKHLQWHVWLQH
SHULVWDOVLVLVPRUHUDSLGWKDQQRUPDO7KHIRFXVRILQFUHDVHGXSWDNHPXVWPRYHWKURXJK
WKHERZHORYHUWKHFRXUVHRIVHULDOLPDJHV)LJI

)LJXUH
$EQRUPDOEOHHGLQJVFDQ
$QDEQRUPDOFROOHFWLRQRIUDGLRWUDFHULVVHHQLQWKHULJKWORZHUTXDGUDQWZKLWHRYDOLQWKLVSDWLHQWEOHHGLQJ
IURPULJKWVLGHGGLYHUWLFXORVLV7KHIRFXVRILQFUHDVHGXSWDNHPRYHGWKURXJKWKHODUJHERZHORQVHULDOLPDJHV
5DGLRWUDFHUDFWLYLW\LVVHHQLQWKHPDMRUYHVVHOV$R$RUWD,LOLDFDUWHULHVWKHVWRPDFK6DQGWKHOLYHU/


3RVLWURQ(PLVVLRQ7RPRJUDSK\
3RVLWURQHPLVVLRQWRPRJUDSK\3(7VFDQVRSHUDWHRQDPROHFXODUOHYHOWRSURGXFHWKUHH
GLPHQVLRQDOLPDJHVWKDWGHSLFWWKHERG\
VELRFKHPLFDODQGPHWDEROLFSURFHVVHV7KH\DUH
SHUIRUPHGXVLQJDSRVLWURQSRVLWLYHHOHFWURQSURGXFLQJUDGLRLVRWRSHDWWDFKHGWRD
WDUJHWLQJSKDUPDFHXWLFDO
5DGLRLVRWRSHVXVHGLQ3(7LPDJLQJLQFOXGHIOXRULQHFDUERQDQGR[\JHQ

7KHVHLVRWRSHVKDYHVKRUWKDOIOLYHVDOOOHVVWKDQKRXUVDQGVLQFHWKH\DUHSURGXFHGLQ

DF\FORWURQHDUOLHU3(7VFDQQHUVUHTXLUHGDQRQVLWHF\FORWURQ)OXRULQHKDVWKHEHQHILW
RIDOORZLQJSURGXFWLRQLQDQRIIVLWHF\FORWURQ
7KHPRVWFRPPRQO\XVHGWDUJHWPROHFXOHLQ3(7VFDQQLQJLVDQDQDORJRIJOXFRVHFDOOHG
IOXRURGHR[\JOXFRVH)'*FDOOHG)'*3(77KHFRQFHQWUDWLRQRIWKLVJOXFRVH
DQDORJLQERGLO\WLVVXHVJLYHVDPHDVXUHRIPHWDEROLFDFWLYLW\
0DQ\3(7VFDQQHUVLQFRUSRUDWHWKHSUHVHQFHRID&7VFDQQHUZKLFKDOORZVIRUWKH
IXVLRQFDOOHGFRUHJLVWUDWLRQRIWKHIXQFWLRQDO3(7GDWDVHWRQWKHDQDWRPLFDO
GDWDVHWRI&7VFDQLPDJHV7KH3(7DQG&7VFDQVDUHGRQHVHTXHQWLDOO\ZLWKRXWPRYLQJ
WKHSDWLHQWZKLFKPLQLPL]HVSDWLHQWPRWLRQEHWZHHQWKHWZRVWXGLHVDQGLPSURYHVWKH
TXDOLW\RIWKHLPDJH
%\IXVLQJWKH3(7DQG&7LPDJHVWKHDQDWRPLFDOORFDWLRQRIWKHIXQFWLRQDODEQRUPDOLW\LV
GHWHUPLQHG)LJI

)LJXUH
3(7&7IXVLRQLPDJH
%\IXVLQJWKH3(7DQG&7LPDJHVWKHDQDWRPLFDOORFDWLRQRIWKHIXQFWLRQDODEQRUPDOLW\FDQEH
GHWHUPLQHG7KH&7VFDQ$LVVXSHULPSRVHGRQWKH3(7LPDJH&WRIRUPWKH3(7&7IXVLRQLPDJH
%8SWDNHRI)'*LVGHSLFWHGE\YDU\LQJLQWHQVLWLHVRIUHG1RUPDOXSWDNHLVVHHQLQWKHOLYHU/DQG
QRUPDOH[FUHWLRQLVWKURXJKWKHNLGQH\VZKLWHDUURZVLQWRWKHEODGGHU%7KHPRUHFRQFHQWUDWHGWKH
XSWDNHWKHPRUHLQWHQVHWKHUHGFRORU

3(7VFDQVDUHVLPLODUWRVFDQVXVLQJ63(&7H[FHSWWKDW63(&7VFDQVPHDVXUHWKH
UDGLRWUDFHU
VHPLWWHGJDPPDUDGLDWLRQGLUHFWO\ZKHUHDV3(7WUDFHUVSURGXFH
SRVLWURQV

8VHVRI3HW6FDQV
3(7VFDQQLQJLVPRVWRIWHQXVHGLQWKHGLDJQRVLVDQGWUHDWPHQWIROORZXSRI

FDQFHU,WLVIUHTXHQWO\XVHGWRORFDWHKLGGHQPHWDVWDVHVIURPDNQRZQWXPRURUWR
GHWHFWUHFXUUHQFH2QFRORJLF3(7VFDQVPDNHXSDERXWRIWKHFOLQLFDOXVHRI3(7
6RPHWXPRUVWDNHXSPRUHRIWKHUDGLRWUDFHUWKDQRWKHUVDQGDUHUHIHUUHGWRDV)'*
DYLGWXPRUV
%HFDXVHRIWKHLUDELOLW\WRPHDVXUHIXQFWLRQ3(7VFDQVDUHDOVRXVHGLQDQDO\]LQJEUDLQDQG
KHDUWIXQFWLRQDQGWRPHDVXUHUHJLRQDOEORRGIORZ,QWKHEUDLQDUHDVRIKLJKUDGLRWUDFHU
DFWLYLW\FRUUHVSRQGWRDUHDVRILQFUHDVHGEUDLQDFWLYLW\%\XVLQJFRPSRXQGVWKDW
ELQGWRFHUWDLQQHXURUHFHSWRUVLQWKHEUDLQ3(7KDVEHHQXVHGWRVWXG\SV\FKLDWULF
GLVRUGHUVDQGVXEVWDQFHDEXVH,WKDVDOVREHHQXVHGH[WHQVLYHO\LQ$O]KHLPHUGLVHDVHDQG
HSLOHSV\
,QWKHKHDUW3(7VFDQVDUHEHLQJXVHGLQWKHGLDJQRVLVRIFRURQDU\DUWHU\GLVHDVHLQ
SDUWEHFDXVHWKH\RIIHUVXSHULRUUHVROXWLRQWRSHUIXVLRQLPDJLQJ&RPSOHWHO\
LQIDUFWHGDUHDVFDQEHGLIIHUHQWLDWHGIURPLVFKHPLDXWLOL]LQJERWKSHUIXVLRQDQG3(7
LPDJLQJ7KLVGLIIHUHQWLDWLRQLVLPSRUWDQWLQGHWHUPLQLQJDFRXUVHRIWUHDWPHQWEHFDXVH
WKHUHLVOLWWOHEHQHILWLQUHYDVFXODUL]LQJFRPSOHWHO\LQIDUFWHGPXVFOH

6DIHW\,VVXHVDQG3HW6FDQV
3(7VFDQVH[SRVHWKHERG\WRLRQL]LQJUDGLDWLRQ:KHQFRPELQHGZLWKD&7VFDQWKDW
DOVRXWLOL]HVLRQL]LQJUDGLDWLRQWKHUDGLDWLRQGRVHFDQEHVLJQLILFDQW$VZLWKDOOGLDJQRVWLF
WHVWVWKDWXWLOL]HLRQL]LQJUDGLDWLRQWKHEHQHILWVSURYLGHGE\WKHGDWDREWDLQHGIURPWKHWHVW
PXVWEHZHLJKHGDJDLQVWLWVSRWHQWLDOULVNV
)DOVHSRVLWLYHILQGLQJVPD\RFFXUZLWKLQIODPPDWRU\SURFHVVHVLQEHQLJQQHRSODVPV
DQGLQK\SHUSODVWLFEXWEHQLJQWLVVXHDOORIZKLFKDUH)'*DYLG)LJI

)LJXUH
)**DYLGVFDUIURPKHUQLDUHSDLU
3(7VFDQVDUHPRVWRIWHQXVHGWRGLDJQRVHRUFRQILUPPDOLJQDQF\)DOVHSRVLWLYHILQGLQJVPD\RFFXU
ZLWKLQIODPPDWRU\SURFHVVHVLQEHQLJQQHRSODVPVDQGLQK\SHUSODVWLFEXWEHQLJQWLVVXHDOORIZKLFKDUH
)'*DYLG$7KLVSDWLHQWKDGSUHYLRXVO\XQGHUJRQHDKHUQLDUHSDLURQWKHULJKWVLGHVROLGZKLWHDUURZ
7KH3(7&7IXVLRQLPDJH%VKRZVLQWHQVHXSWDNHLQWKHLQIODPPDWRU\UHDFWLRQVXUURXQGLQJWKHVLWHRI
WKHUHSDLUGRWWHGZKLWHDUURZ

)DOVHQHJDWLYHILQGLQJVPD\RFFXULIWKHWXPRULVYHU\VPDOOKDVQHFURVHGRULV

FRPSRVHGRIFHUWDLQFHOOW\SHVVXFKDVSURVWDWHFDUFLQRPDVRPHWK\URLGFDQFHUVOREXODU
EUHDVWFDQFHUVZHOOGLIIHUHQWLDWHGKHSDWRFHOOXODUFDUFLQRPDVDQGVRPHVNHOHWDOPHWDVWDVHV

3HW6FDQ,PDJHV
7KHUHLVSK\VLRORJLFQRUPDOXSWDNHRI)'*LQWKHVDOLYDU\JODQGVWK\URLGEURZQIDW
WK\PXVWKHOLYHU*,WUDFWNLGQH\VDQGXULQDU\EODGGHUDQGWKHXWHUXVVHH)LJI
)'*DYLGOHVLRQVDUHWKRVHWKDWVKRZDEQRUPDOO\LQFUHDVHGXSWDNHRIWKH
UDGLRSKDUPDFHXWLFDO)LJVDQGI

)LJXUH
3RVLWLYH3(7VFDQEURQFKRJHQLFFDUFLQRPD
$Q)'*DYLGOHVLRQLVVHHQLQWKHULJKWXSSHUOREHZKLWHDUURZRQWKLVFRURQDOUHIRUPDWWHG3(7&7
VFDQ%FRQILUPLQJZKDWZDVVXVSHFWHGWREHWKHPDOLJQDQWQDWXUHRIWKLVOHVLRQ7KLVZDVDQ
DGHQRFDUFLQRPDRIWKHOXQJ$PHWDVWDWLFO\PSKQRGHLVVHHQLQWKHOHIWVXSUDFODYLFXODUUHJLRQEODFN
DUURZ

)LJXUH
3RVLWLYH3(7VFDQEURQFKRJHQLFFDUFLQRPDZLWKPHWDVWDVHV
$ODUJHULJKWKLODUPDVVGRWWHGZKLWHDUURZLV)'*DYLGDQGUHSUHVHQWHGDEURQFKRJHQLFFDUFLQRPD
%/HVVHYLGHQWZDVDULJKWVXSUDFODYLFXODUO\PSKQRGHPHWDVWDVLVVROLGZKLWHDUURZ3(7VFDQVDUH

HVSHFLDOO\KHOSIXOLQGHWHFWLQJRFFXOWPHWDVWDVHV

%R[ELQGLFDWHVWKRVHWXPRUVWKDWDUHHVSHFLDOO\DYLGDWWDNLQJXS)'*GXULQJ3(7

VFDQV
%2;

)'*$YLG7XPRUV

/XQJFDQFHU
%UHDVWFDQFHU
&RORQFDQFHUUHFXUUHQFHV
1RGDOPHWDVWDVHVIURPKHDGDQGQHFNFDQFHUV
%UDLQWXPRUQHFURVLVYHUVXVUHVLGXDORUUHFXUUHQWWXPRU
3DQFUHDWLFFDQFHU
/\PSKRPDVWDJLQJ

7$.(+20(32,176

1XFOHDU0HGLFLQH8QGHUVWDQGLQJWKH3ULQFLSOHVDQG5HFRJQL]LQJWKH%DVLFV
$UDGLRDFWLYHLVRWRSHUDGLRLVRWRSHLVDQDWXUDOO\RUDUWLILFLDOO\SURGXFHGXQVWDEOH
IRUPRIDQHOHPHQWWKDWHPLWVUDGLDWLRQIURPLWVQXFOHXVDVLWGHFD\V
5DGLRSKDUPDFHXWLFDOVDUHFRPELQDWLRQVRIUDGLRLVRWRSHVDWWDFKHGWRD
SKDUPDFHXWLFDOWKDWKDVELQGLQJSURSHUWLHVZKLFKDOORZLWWRFRQFHQWUDWHLQFHUWDLQERG\
WLVVXHV
8QVWDEOHLVRWRSHVDWWHPSWWRUHDFKVWDELOLW\E\WKHSURFHVVRIVSOLWWLQJILVVLRQRUE\
HPLWWLQJSDUWLFOHVDOSKDRUEHWDSDUWLFOHVDQGRUHQHUJ\JDPPDUD\VLQWKHIRUPRI
UDGLDWLRQ3RVLWLYHO\FKDUJHGHOHFWURQVDUHFDOOHGSRVLWURQV
3K\VLFDOKDOIOLIHLVWKHWLPHUHTXLUHGIRUWKHQXPEHURIUDGLRDFWLYHDWRPVLQDVDPSOHWR
GHFUHDVHE\DQGLVDSURSHUW\LQKHUHQWWRWKHUDGLRLVRWRSH0RVWUDGLRLVRWRSHVIRU
PHGLFDOXVHPXVWKDYHKDOIOLYHVRIKRXUVRUGD\V
7KHPRVWZLGHO\XVHGUDGLRLVRWRSHLVWHFKQHWLXPPZLWKDKDOIOLIHRIKRXUV,W
GHFD\VE\HPLWWLQJORZHQHUJ\JDPPDUD\V
$JDPPDFDPHUDXVHVRQHRUPRUHVFLQWLOODWLRQGHWHFWRUVPDGHRIFU\VWDOVWKDW
VFLQWLOODWHOXPLQHVFHLQUHVSRQVHWRJDPPDUD\VHPLWWHGIURPWKHSDWLHQW

6LQJOHSKRWRQHPLVVLRQFRPSXWHGWRPRJUDSK\63(&7LPDJLQJLVSHUIRUPHGE\

XVLQJDJDPPDFDPHUDWRDFTXLUHPXOWLSOHWZRGLPHQVLRQDO'LPDJHVIURPPXOWLSOH
DQJOHVZKLFKDUHWKHQUHFRQVWUXFWHGE\FRPSXWHULQWRDWKUHHGLPHQVLRQDO'
GDWDVHW
%RQHVFDQVDUHWKHVFUHHQLQJPHWKRGRIFKRLFHIRUWKHGHWHFWLRQRIRVVHRXVPHWDVWDWLF
GLVHDVH7FP0'3GHSRVLWVLQWKHJUHDWHVWFRQFHQWUDWLRQLQWKRVHDUHDVRIJUHDWHVW
ERQHWXUQRYHU5DGLRQXFOLGHERQHVFDQQLQJLVVHQVLWLYHWRIRUPHWDVWDVHV
EXWQRWVSHFLILF
&7SXOPRQDU\DQJLRJUDSK\&73$KDVODUJHO\UHSODFHGQXFOHDUVFDQVLQWKHGLDJQRVLVRI
SXOPRQDU\WKURPERHPEROLFGLVHDVH,IWKHFKHVWUDGLRJUDSKLVQRUPDOWKHQ94VFDQQLQJ
PD\EHGLDJQRVWLF,IWKHFKHVWUDGLRJUDSKLVDEQRUPDOD&73$LVXVXDOO\SHUIRUPHG
3XOPRQDU\HPEROLVKRXOGSURGXFHDVHJPHQWDOPLVPDWFKRQWKH94VFDQLQZKLFK
SHUIXVLRQLVDEVHQWEXWYHQWLODWLRQLVPDLQWDLQHG
1XFOHDUFDUGLDFVFDQVDUHXVHGWRGHWHFWP\RFDUGLDOLVFKHPLDDQGLQIDUFWLRQDQGWR
GHWHUPLQHOHIWYHQWULFXODUHMHFWLRQIUDFWLRQUHJLRQDOZDOOPRWLRQDQGHQGV\VWROLFOHIW
YHQWULFXODUYROXPH
7K\URLGVFDQVDUHXVHGWRGHWHUPLQHWKHIXQFWLRQLQJRIWK\URLGQRGXOHVWRKHOS
GLIIHUHQWLDWH*UDYHV
GLVHDVHIURPWR[LFQRGXODUJRLWHUVDQGWK\URWR[LFRVLVDQGWRLPDJH
PHWDVWDVHVIURPWK\URLGFDQFHU7K\URLGVFDQVDUHIUHTXHQWO\FRPELQHGZLWKDIXQFWLRQDO
PHDVXUHPHQWRIWK\URLGDFWLYLW\FDOOHGWK\URLGXSWDNH
7KHPRVWIUHTXHQWO\XVHGELOLDU\VFDQLVJHQHULFDOO\FDOOHGD+,'$VFDQ+,'$VFDQVDUH
JHQHUDOO\LQGLFDWHGLQFDVHVRIVXVSHFWHGDFXWHFKROHF\VWLWLVLQZKLFKDQXOWUDVRXQG
H[DPLQDWLRQPD\EHHTXLYRFDO7KH\DUHDOVRXVHGWRGHPRQVWUDWHSRVWRSHUDWLYHELOLDU\
OHDNV
1XFOHDU*,EOHHGLQJVFDQVFDQKHOSLQWKHORFDOL]DWLRQRIEOHHGLQJIURPWKHORZHU
JDVWURLQWHVWLQDOWUDFWE\LPDJLQJWKHDEGRPHQDIWHUDGPLQLVWHULQJWDJJHGUHGEORRGFHOOVWR
WKHSDWLHQW
3RVLWURQHPLVVLRQWRPRJUDSK\3(7VFDQVRSHUDWHRQDPROHFXODUOHYHOWRSURGXFH
WKUHHGLPHQVLRQDOLPDJHVWKDWGHSLFWWKHERG\
VELRFKHPLFDODQGPHWDEROLFSURFHVVHV3(7
VFDQQLQJLVPRVWRIWHQXVHGLQWKHGLDJQRVLVDQGWUHDWPHQWIROORZXSRIFDQFHUEXW
WKH\DUHDOVRXVHGLQFDUGLDFDQGEUDLQLPDJLQJ
7KHPRVWFRPPRQO\XVHGWDUJHWPROHFXOHLQ3(7VFDQQLQJLVDQDQDORJRIJOXFRVHFDOOHG
IOXRURGHR[\JOXFRVH)'*FDOOHG)'*3(7
0DQ\3(7VFDQQHUVLQFRUSRUDWHWKHSUHVHQFHRID&7VFDQQHUZKLFKDOORZVIRUWKHIXVLRQ
FDOOHGFRUHJLVWUDWLRQRIWKHIXQFWLRQDO3(7GDWDVHWRQWKHDQDWRPLFDOGDWDVHWRI
&7VFDQLPDJHV

&RS\ULJKW(OVHYLHU,QF$OOULJKWVUHVHUYHG