manual lock-in
TRANSCRIPT
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 1/217
0RGHO
:LGH%DQGZLGWK
'63/R.NLQ$PSOLILHU ,QVWUX.WLRQ0DQXDO $01/%
&RS\ULJKW$0(7(.$'9$1&('0($685(0(177(&+12/2*<,1&
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 2/217
)&&1RWL.H7KLVHTXLSPHQWJHQHUDWHVXVHVDQGDQUDGLDWHUDGLRIUHTXHQ\HQHUJ\DQGLIQRWLQVWDOOHGDQGXVHGLQDRUGDQHZLWKWKLVPDQXDOPD\DXVHLQWHUIHUHQHWRUDGLRRPPXQLDWLRQV$V
WHPSRUDULO\SHUPLWWHGE\UHJXODWLRQRSHUDWLRQRIWKLVHTXLSPHQWLQDUHVLGHQWLDODUHDLVOLNHO\WRDXVHLQWHUIHUHQHLQZKLKDVHWKHXVHUDWKLVRZQIDLOLW\ZLOOEHUHTXLUHGWRWDNHZKDWHYHU PHDVXUHVPD\EHUHTXLUHGWRRUUHWWKHLQWHUIHUHQH
&RPSDQ\1DPHV6,*1$/5(&29(5<LVSDUWRI$GYDQHG0HDVXUHPHQW7HKQRORJ\,QDGLYLVLRQRI$0(7(.,Q,WLQOXGHVWKHEXVLQHVVHVIRUPHUO\WUDGLQJDV(**3ULQHWRQ$SSOLHG5HVHDUK(**
,QVWUXPHQWV6LJQDO5HRYHU\(**6LJQDO5HRYHU\DQG3HUNLQ(OPHU,QVWUXPHQWV6LJQDO5HRYHU\
'H.ODUDWLRQRI&RQIRUPLW\7KLVSURGXWRQIRUPVWR(&'LUHWLYHV((&(OHWURPDJQHWL&RPSDWLELOLW\'LUHWLYHDPHQGHGE\((&DQG((&DQG/RZ9ROWDJH'LUHWLYH((&DPHQGHGE\
((&
7KLVSURGXWKDVEHHQGHVLJQHGLQRQIRUPDQHZLWKWKHIROORZLQJ,(&(1VWDQGDUGV
(0& %6(1*URXS&ODVV$&63,5%6(1
,(&,(&,(&
6DIHW\ %6(1,(&$
7UDGHPDUNV $0(7(.DQGWKH&DQGORJRVDUHUHJLVWHUHGWUDGHPDUNVRI$0(7(.,Q
,%0LVDUHJLVWHUHGWUDGHPDUNRI,QWHUQDWLRQDO%XVLQHVV0DKLQHV&RUSRUDWLRQ
0LURVRIW06'264%$6,&*:%$6,&DQG4XLN%DVLDUHUHJLVWHUHGWUDGHPDUNVDQG:LQGRZVLVDWUDGHPDUNRI 0LURVRIW&RUSRUDWLRQ
1DWLRQDO,QVWUXPHQWVLVDUHJLVWHUHGWUDGHPDUNRI1DWLRQDO,QVWUXPHQWV&RUSRUDWLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 3/217
7DEOHRI&RQWHQWV7DEOHRI&RQWHQWV
L
&KDSWHU2QH,QWURGX.WLRQ
+RZWR8VH7KLV0DQXDO
:KDWLVD/R.NLQ$PSOLILHU"
H\6SH.LIL.DWLRQVDQG%HQHILWV
&KDSWHU7ZR,QVWDOODWLRQ,QLWLDO&KH.NV
,QVWDOODWLRQ
,QWURGX.WLRQ
5D.N0RXQWLQJ
,QVSH.WLRQ
/LQH&RUG3OXJ
/LQH9ROWDJH6HOH.WLRQDQG/LQH)XVHV
,QLWLDO&KH.NV
,QWURGX.WLRQ
3UR.HGXUH
/LQH)UHTXHQ.\)LOWHU$GMXVWPHQW
,QWURGX.WLRQ
3UR.HGXUH
&KDSWHU7KUHH7H.KQL.DO'HV.ULSWLRQ
,QWURGX.WLRQ
2SHUDWLQJ0RGHV
,QWURGX.WLRQ 6LQJOH5HIHUHQ.H'XDO5HIHUHQ.H
6LQJOH+DUPRQL.'XDO+DUPRQL.
,QWHUQDO([WHUQDO5HIHUHQ.H0RGH
9LUWXDO5HIHUHQ.H0RGH
3ULQ.LSOHVRI2SHUDWLRQ
%OR.N'LDJUDP
6LJQDO&KDQQHO,QSXWV
/LQH)UHTXHQ.\5HMH.WLRQ)LOWHU
$&*DLQDQG'\QDPL.5HVHUYH
$QWL$OLDVLQJ)LOWHU
0DLQ$QDORJWR'LJLWDO&RQYHUWHU
5HIHUHQ.H&KDQQHO 3KDVH6KLIWHU
,QWHUQDO2V.LOODWRU*HQHUDO
,QWHUQDO2V.LOODWRU8SGDWH5DWH
,QWHUQDO2V.LOODWRU)UHTXHQ.\$PSOLWXGH6ZHHSV
'HPRGXODWRUV
2XWSXW3UR.HVVRU2XWSXW)LOWHUV
2XWSXW3UR.HVVRU2XWSXW2IIVHWDQG([SDQG
2XWSXW3UR.HVVRU9H.WRU0DJQLWXGHDQG3KDVH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 4/217
7$%/(2)&217(176
LL
2XWSXW3UR.HVVRU1RLVH0HDVXUHPHQWV
$X[LOLDU\$QDORJ,QSXWVDQG2XWSXWV$'&VDQG'$&V
0DLQ0L.URSUR.HVVRU6SH.WUDO'LVSOD\
0DLQ0L.URSUR.HVVRU8VHU6HWWLQJV
0DLQ0L.URSUR.HVVRU*HQHUDO
0DLQ0L.URSUR.HVVRU$XWR)XQ.WLRQV
*HQHUDO $..XUD.\
3RZHUXS'HIDXOWV
&KDSWHU)RXU)URQWDQG5HDU3DQHOV
)URQW3DQHO
$DQG%,6LJQDO,QSXW&RQQH.WRUV
26&287&RQQH.WRU
5(),1&RQQH.WRU
(OH.WUROXPLQHV.HQW6.UHHQ
+(/3H\0(18H\
6(/(&7&21752/H\
5HDU3DQHO
/LQH3RZHU6ZLW.K
/LQH3RZHU,QSXW$VVHPEO\
56&RQQH.WRU
$8;56&RQQH.WRU
*3,%&RQQH.WRU
',*,7$/,2&RQQH.WRU
35($0332:(5&RQQH.WRU
5()021&RQQH.WRU 5()77/&RQQH.WRU
'$&DQG'$&&RQQH.WRUV
&+DQG&+&RQQH.WRUV
$'&$'&$'&DQG$'&&RQQH.WRUV
75,*&RQQH.WRU
6,*021&RQQH.WRU
&KDSWHU)LYH)URQW3DQHO2SHUDWLRQ
,QWURGX.WLRQ
0HQX6WUX.WXUH 0HQX'HV.ULSWLRQV6LQJOH5HIHUHQ.H0RGH
0DLQ'LVSOD\
&RQWURO6HOH.WLRQ0HQX
0DLQ0HQX
6LJQDO&KDQQHO0HQX
5HIHUHQ.H&KDQQHO0HQX
2XWSXW)LOWHUV0HQX
2XWSXW2IIVHW([SDQG0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 5/217
7$%/(2)&217(176
LLL
2XWSXW(TXDWLRQV0HQX
2V.LOODWRU0HQX
)UHTXHQ.\6ZHHS0HQX
$PSOLWXGH6ZHHS0HQX
$XWR)XQ.WLRQV0HQX
&RQILJXUDWLRQ0HQX
&RPPXQL.DWLRQV0HQX 566HWWLQJV0HQX
*3,%6HWWLQJV0HQX
&RPPXQL.DWLRQV0RQLWRU
$QDORJ2XWSXWV0HQX6LQJOH9LUWXDO5HIHUHQ.H0RGHV
2SWLRQV0HQX
6SH.WUDO'LVSOD\
0DLQ0HQX
&XUYH%XIIHU0HQX
&XUYH6HOH.W0HQX
6LQJOH*UDSK0HQX
'RXEOH*UDSK0HQX
8VHU6HWWLQJV0HQX
$X[LOLDU\,20HQX
'LJLWDO3RUW0HQX
0HQX'HV.ULSWLRQV9LUWXDO5HIHUHQ.H0RGH
9LUWXDO5HIHUHQ.H0HQXV
0DLQ'LVSOD\9LUWXDO5HIHUHQ.H0RGH
&RQILJXUDWLRQ0HQX9LUWXDO5HIHUHQ.H0RGH
0HQX'HV.ULSWLRQV'XDO5HIHUHQ.H0RGH
'XDO5HIHUHQ.H6HWXS0HQX
'XDO5HIHUHQ.H0DLQ'LVSOD\
5HIHUHQ.H&KDQQHO0HQX
'XDOUHIHUHQ.H2XWSXW)LOWHUV0HQX 2XWSXW2IIVHW5HI0HQX
2XWSXW2IIVHW5HI0HQX
$XWR)XQ.WLRQV0HQX
&RQILJXUDWLRQ0HQX'XDO5HIHUHQ.H0RGH
$QDORJ2XWSXWV0HQX'XDO5HIHUHQ.HDQG'XDO+DUPRQL.0RGHV
0HQX'HV.ULSWLRQV'XDO+DUPRQL.0RGH
'XDO+DUPRQL.6HWXS0HQX
'XDO+DUPRQL.0DLQ'LVSOD\
5HIHUHQ.H&KDQQHO0HQX
'XDO+DUPRQL.2XWSXW)LOWHUV0HQX
2XWSXW2IIVHW+DUP0HQX
2XWSXW2IIVHW+DUP0HQX $XWR)XQ.WLRQV0HQX
&RQILJXUDWLRQ0HQX'XDO+DUPRQL.0RGH
7\SL.DO/R.NLQ$PSOLILHU([SHULPHQW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 6/217
7$%/(2)&217(176
LY
&KDSWHU6L[&RPSXWHU2SHUDWLRQ
,QWURGX.WLRQ
&DSDELOLWLHV
*HQHUDO
&XUYH6WRUDJH
&XUYH'LVSOD\56DQG*3,%2SHUDWLRQ
,QWURGX.WLRQ
56,QWHUID.H*HQHUDO)HDWXUHV
&KRL.HRI%DXG5DWH
&KRL.HRI1XPEHURI'DWD%LWV
&KRL.HRI3DULW\&KH.N2SWLRQ
$X[LOLDU\56,QWHUID.H
*3,%,QWHUID.H*HQHUDO)HDWXUHV
+DQGVKDNLQJDQG(.KRHV
7HUPLQDWRUV
&RPPDQG)RUPDW
'HOLPLWHUV&RPSRXQG&RPPDQGV
6WDWXV%\WH3URPSWVDQG2YHUORDG%\WH
6HUYL.H5HTXHVWV
&RPPXQL.DWLRQ0RQLWRU0HQX
&RPPDQG'HV.ULSWLRQV
6LJQDO&KDQQHO
5HIHUHQ.H&KDQQHO
6LJQDO&KDQQHO2XWSXW)LOWHUV
6LJQDO&KDQQHO2XWSXW$PSOLILHUV
,QVWUXPHQW2XWSXWV
,QWHUQDO2V.LOODWRU
$X[LOLDU\2XWSXWV
$X[LOLDU\,QSXWV
2XWSXW'DWD&XUYH%XIIHU
&RPSXWHU,QWHUID.HV56DQG*3,%
,QVWUXPHQW,GHQWLIL.DWLRQ
)URQW3DQHO
$XWR'HIDXOW
'XDO0RGH&RPPDQGV
3URJUDPPLQJ([DPSOHV
,QWURGX.WLRQ
%DVL.6LJQDO5H.RYHU\
)UHTXHQ.\5HVSRQVH0HDVXUHPHQW ;DQG<2XWSXW&XUYH6WRUDJH0HDVXUHPHQW
7UDQVLHQW5H.RUGHU
)UHTXHQ.\5HVSRQVH0HDVXUHPHQWXVLQJ&XUYH6WRUDJHDQG)UHTXHQ.\6ZHHS
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 7/217
7$%/(2)&217(176
Y
$SSHQGL[$6SH.LIL.DWLRQV
$SSHQGL[%3LQRXWV
%56&RQQH.WRU3LQRXW %
%3UHDPSOLILHU3RZHU&RQQH.WRU3LQRXW %%'LJLWDO2XWSXW3RUW&RQQH.WRU %
$SSHQGL[&'HPRQVWUDWLRQ3URJUDPV
&6LPSOH7HUPLQDO(PXODWRU&
&56&RQWURO3URJUDPZLWK+DQGVKDNHV &
&*3,%8VHU,QWHUID.H3URJUDP&
$SSHQGL['&DEOH'LDJUDPV
'56&DEOH'LDJUDPV'
$SSHQGL[('HIDXOW6HWWLQJV
$XWR'HIDXOW)XQ.WLRQ (
$SSHQGL[)$OSKDEHWL.DO/LVWLQJRI&RPPDQGV
,QGH[
:DUUDQW\ (QGRI0DQXDO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 8/217
7$%/(2)&217(176
YL
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 9/217
,QWURGX.WLRQ&KDSWHU
+RZWR8VH7KLV0DQXDO
7KLVPDQXDOJLYHVGHWDLOHGLQVWUX.WLRQVIRUVHWWLQJXSDQGRSHUDWLQJWKH
.$")'-*1-4 0RGHO'LJLWDO6LJQDO3UR.HVVLQJ'63GXDOSKDVH
ZLGHEDQGZLGWKOR.NLQDPSOLILHU,WLVVSOLWLQWRWKHIROORZLQJ.KDSWHUV
&KDSWHU,QWURGX.WLRQ
3URYLGHVDQLQWURGX.WLRQWRWKHPDQXDOEULHIO\GHV.ULEHVZKDWDOR.NLQDPSOLILHULV
DQGWKHW\SHVRIPHDVXUHPHQWVLWPD\EHXVHGIRUDQGOLVWVWKHPDMRUVSH.LIL.DWLRQVRI
WKHPRGHO
&KDSWHU,QVWDOODWLRQDQG,QLWLDO&KH.NV
'HV.ULEHVKRZWRLQVWDOOWKHLQVWUXPHQWDQGJLYHVDVLPSOHWHVWSUR.HGXUHZKL.KPD\
EHXVHGWR.KH.NWKDWWKHXQLWKDVDUULYHGLQIXOOZRUNLQJRUGHU
&KDSWHU7H.KQL.DO'HV.ULSWLRQ3URYLGHVDQRXWOLQHGHV.ULSWLRQRIWKHGHVLJQRIWKHLQVWUXPHQWDQGGLV.XVVHVWKHHIIH.W
RIWKHYDULRXV.RQWUROV$JRRGXQGHUVWDQGLQJRIWKHGHVLJQZLOOHQDEOHWKHXVHUWRJHW
WKHEHVWSRVVLEOHSHUIRUPDQ.HIURPWKHXQLW
&KDSWHU)URQWDQG5HDU3DQHOV
'HV.ULEHVWKHLQVWUXPHQW¶V.RQQH.WRUV.RQWUROVDQGLQGL.DWRUVDVUHIHUUHGWRLQWKH
VXEVHTXHQW.KDSWHUV
&KDSWHU)URQW3DQHO2SHUDWLRQ
'HV.ULEHVWKH.DSDELOLWLHVRIWKHLQVWUXPHQWZKHQXVHGDVDPDQXDOO\RSHUDWHGXQLW
DQGVKRZVKRZWRRSHUDWHLWXVLQJWKHIURQWSDQHO.RQWUROV
&KDSWHU&RPSXWHU2SHUDWLRQ
7KLV.KDSWHUSURYLGHVGHWDLOHGLQIRUPDWLRQRQRSHUDWLQJWKHLQVWUXPHQWIURPD
.RPSXWHURYHUHLWKHUWKH*3,%,(((RU56LQWHUID.HV,WLQ.OXGHV
LQIRUPDWLRQRQKRZWRHVWDEOLVK.RPPXQL.DWLRQVWKHIXQ.WLRQVDYDLODEOHWKH
.RPPDQGV\QWD[DQGDGHWDLOHG.RPPDQGOLVWLQJ
$SSHQGL[$
*LYHVWKHGHWDLOHGVSH.LIL.DWLRQVRIWKHXQLW
$SSHQGL[%
'HWDLOVWKHSLQRXWVRIWKHPXOWLZD\.RQQH.WRUVRQWKHUHDUSDQHO
$SSHQGL[&
/LVWVWKUHHVLPSOHWHUPLQDOSURJUDPVZKL.KPD\EHXVHGDVWKHEDVLVIRUPRUH
.RPSOH[XVHUZULWWHQSURJUDPV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 10/217
&KDSWHU,1752'8&7,21
$SSHQGL['
6KRZVWKH.RQQH.WLRQGLDJUDPVIRUVXLWDEOH56QXOOPRGHP.DEOHVWR.RXSOHWKH
XQLWWRDQ,%03&RU.RPSDWLEOH.RPSXWHU
$SSHQGL[(
3URYLGHVDOLVWLQJRIWKHLQVWUXPHQWVHWWLQJVSURGX.HGE\XVLQJWKH$XWR'HIDXOW
IXQ.WLRQV
$SSHQGL[)
*LYHVDQDOSKDEHWL.DOOLVWLQJRIWKH.RPSXWHU.RPPDQGVIRUHDV\UHIHUHQ.H
1HZXVHUVDUHUH.RPPHQGHGWRXQSD.NWKHLQVWUXPHQWDQG.DUU\RXWWKHSUR.HGXUHLQ
.KDSWHUWR.KH.NWKDWLWLVZRUNLQJVDWLVID.WRULO\7KH\VKRXOGWKHQPDNHWKHPVHOYHV
IDPLOLDUZLWKWKHLQIRUPDWLRQLQ.KDSWHUVDQGHYHQLIWKH\LQWHQGWKDWWKHXQLW
ZLOOHYHQWXDOO\EHXVHGXQGHU.RPSXWHU.RQWURO2QO\ZKHQWKH\DUHIXOO\.RQYHUVDQW
ZLWKRSHUDWLRQIURPWKHIURQWSDQHOVKRXOGWKH\WKHQWXUQWR.KDSWHUIRULQIRUPDWLRQ
RQKRZWRXVHWKHLQVWUXPHQWUHPRWHO\2Q.HWKHVWUX.WXUHRIWKH.RPSXWHU.RPPDQGV
LVIDPLOLDUDSSHQGL[)ZLOOSURYH.RQYHQLHQWDVLWSURYLGHVD.RPSOHWHDOSKDEHWL.DO
OLVWLQJRIWKHVH.RPPDQGVLQDVLQJOHHDV\WRXVHVH.WLRQ
:KDWLVD/R.NLQ$PSOLILHU"
,QLWVPRVWEDVL.IRUPWKHOR.NLQDPSOLILHULVDQLQVWUXPHQWZLWKGXDO.DSDELOLW\,W.DQ
UH.RYHUVLJQDOVLQWKHSUHVHQ.HRIDQRYHUZKHOPLQJQRLVHED.NJURXQGRUDOWHUQDWLYHO\LW
.DQSURYLGHKLJKUHVROXWLRQPHDVXUHPHQWVRIUHODWLYHO\.OHDQVLJQDOVRYHUVHYHUDO
RUGHUVRIPDJQLWXGHDQGIUHTXHQ.\
0RGHUQLQVWUXPHQWVVX.KDVWKHPRGHORIIHUIDUPRUHWKDQWKHVHWZREDVL.
.KDUD.WHULVWL.VDQGLWLVWKLVLQ.UHDVHG.DSDELOLW\ZKL.KKDVOHGWRWKHLUD..HSWDQ.HLQ
PDQ\ILHOGVRIV.LHQWLIL.UHVHDU.KVX.KDVRSWL.VHOH.WUR.KHPLVWU\PDWHULDOVV.LHQ.H
IXQGDPHQWDOSK\VL.VDQGHOH.WUL.DOHQJLQHHULQJDVXQLWVZKL.K.DQSURYLGHWKH
RSWLPXPVROXWLRQWRDODUJHUDQJHRIPHDVXUHPHQWSUREOHPV
7KHPRGHOOR.NLQDPSOLILHU.DQIXQ.WLRQDVD
$&6LJQDO5H.RYHU\,QVWUXPHQW 7UDQVLHQW5H.RUGHU
9H.WRU9ROWPHWHU 3UH.LVLRQ2V.LOODWRU
3KDVH0HWHU )UHTXHQ.\0HWHU
6SH.WUXP$QDO\]HU 1RLVH0HDVXUHPHQW8QLW
7KHVH.KDUD.WHULVWL.VDOODYDLODEOHLQDVLQJOH.RPSD.WXQLWPDNHLWDQLQYDOXDEOHDGGLWLRQWRDQ\ODERUDWRU\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 11/217
&KDSWHU,1752'8&7,21
H\6SH.LIL.DWLRQVDQG%HQHILWV
7KH.$")'-*1-4 0RGHOUHSUHVHQWVDVLJQLIL.DQWDGYDQ.HLQWKH
DSSOL.DWLRQRI'63WH.KQRORJ\LQWKHGHVLJQRIDOR.NLQDPSOLILHU8QWLOQRZ
OLPLWDWLRQVLQWKHDYDLODEOHVHPL.RQGX.WRUGHYL.HVKDYHUHVWUL.WHGWKHRSHUDWLQJ
IUHTXHQ.\UDQJHRIVX.KLQVWUXPHQWVWRDWPRVWDIHZKXQGUHGNLORKHUW]7KHPRGHOZLWKLWVXVHRIWKHODWHVWWH.KQRORJ\H[WHQGVWKLVOLPLWWR0+]:KDWLVPRUH
LWGRHVWKLVZLWKRXW.RPSURPLVLQJDQ\RWKHULPSRUWDQWVSH.LIL.DWLRQV
H\VSH.LIL.DWLRQVLQ.OXGH
)UHTXHQ.\UDQJH +]WR0+]
9ROWDJHVHQVLWLYLW\ Q9WR9IXOOV.DOH
&XUUHQWLQSXWPRGHVHQVLWLYLWLHV S$WR$IXOOV.DOH
I$WR$IXOOV.DOH
I$WRQ$IXOOV.DOH
/LQHIUHTXHQ.\UHMH.WLRQILOWHU
'XDOSKDVHGHPRGXODWRUZLWK;<DQG5TRXWSXWV
9HU\ORZSKDVHQRLVHRIUPV
2XWSXWWLPH.RQVWDQW VWRNV
GLJLWRXWSXWUHDGLQJV
'XDOUHIHUHQ.HPRGHDOORZVVLPXOWDQHRXVPHDVXUHPHQWRIWZRVLJQDOVDW
GLIIHUHQWUHIHUHQ.HIUHTXHQ.LHVXSWRN+]RUN+]ZLWKRSWLRQRU
0+]ZLWKRSWLRQ
6LQJOHDQGGXDOKDUPRQL.PRGHDOORZVVLPXOWDQHRXVPHDVXUHPHQWRIXSWRWZR
GLIIHUHQWKDUPRQL.VRIDVLJQDODWXSWRN+]RUN+]ZLWKRSWLRQ
RU0+]ZLWKRSWLRQ
9LUWXDOUHIHUHQ.HPRGHDOORZVUHIHUHQ.HIUHHPHDVXUHPHQWRIVLJQDOVXSWR
0+]
6SH.WUDO'LVSOD\PRGHVKRZVIUHTXHQ.\VSH.WUXPRIWKHVLJQDOSULRUWRWKHGHPRGXODWRUVWRKHOSLQVHOH.WLQJDUHIHUHQ.HIUHTXHQ.\
'LUH.W'LJLWDO6\QWKHVL]HU''6RV.LOODWRUZLWKYDULDEOHDPSOLWXGHDQGIUHTXHQ.\
2V.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSJHQHUDWRU
ELWSURJUDPPDEOHGLJLWDO,2SRUWIRUH[WHUQDOV\VWHP.RQWURO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 12/217
&KDSWHU,1752'8&7,21
)RXUDX[LOLDU\$'&LQSXWVDQGWZRDX[LOLDU\'$&RXWSXWV
)XOOUDQJHRIDXWRPRGHV
1RQYRODWLOHPHPRU\IRU.RPSOHWHLQVWUXPHQWVHWWLQJV
6WDQGDUG,(((DQG56LQWHUID.HVZLWK56GDLV\.KDLQ.DSDELOLW\IRU XSWRLQVWUXPHQWV
/DUJHKLJKUHVROXWLRQHOH.WUROXPLQHV.HQWGLVSOD\SDQHOZLWKPHQXVIRU.RQWURODQG
GLVSOD\RILQVWUXPHQWRXWSXWVLQERWKGLJLWDODQGJUDSKL.DOIRUPDWV
(DV\HQWU\RIQXPHUL.DO.RQWUROVHWWLQJVXVLQJNH\SDG
SRLQWLQWHUQDO.XUYHVWRUDJHEXIIHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 13/217
,QVWDOODWLRQ
,QLWLDO&KH.NV&KDSWHU
,QVWDOODWLRQ
,QWURGX.WLRQ
,QVWDOODWLRQRIWKHPRGHOLQWKHODERUDWRU\RURQWKHSURGX.WLRQOLQHLVYHU\
VLPSOH,W.DQEHRSHUDWHGRQDOPRVWDQ\ODERUDWRU\EHQ.KRUEHUD.NPRXQWHGXVLQJ
WKHRSWLRQDOD..HVVRU\NLWDWWKHXVHUV.RQYHQLHQ.H:LWKDQDPELHQWRSHUDWLQJ
WHPSHUDWXUHUDQJHRIq&WRq&LWLVKLJKO\WROHUDQWWRHQYLURQPHQWDOYDULDEOHV
QHHGLQJRQO\WREHSURWH.WHGIURPH[SRVXUHWR.RUURVLYHDJHQWVDQGOLTXLGV
7KHLQVWUXPHQWXVHVIRU.HGDLUYHQWLODWLRQDQGDVVX.KVKRXOGEHOR.DWHGVRWKDWWKH
YHQWLODWLRQKROHVRQWKHVLGHVDQGUHDUSDQHOVDUHQRWREVWUX.WHG7KLV.RQGLWLRQLVEHVW
VDWLVILHGE\OHDYLQJDVSD.HRIDWOHDVW.PEHWZHHQWKHVLGHDQGUHDUSDQHOVDQG
DQ\DGMD.HQWVXUID.H
5D.N0RXQWLQJ
$QRSWLRQDOD..HVVRU\NLWSDUWQXPEHULVDYDLODEOHIURP
.$")'-*1-4 WRDOORZWKHPRGHOWREHPRXQWHGLQDVWDQGDUGLQ.K
UD.N
,QVSH.WLRQ
8SRQUH.HLSWWKHPRGHO/R.NLQ$PSOLILHUVKRXOGEHLQVSH.WHGIRUVKLSSLQJ
GDPDJH,IDQ\LVQRWHG.$")'-*1-4 VKRXOGEHQRWLILHGLPPHGLDWHO\DQGD
.ODLPILOHGZLWKWKH.DUULHU7KHVKLSSLQJ.RQWDLQHUVKRXOGEHVDYHGIRULQVSH.WLRQE\
WKH.DUULHU
/LQH&RUG3OXJ
$VWDQGDUG,(&VR.NHWLVPRXQWHGRQWKHUHDUSDQHORIWKHLQVWUXPHQWDQGD
VXLWDEOHOLQH.RUGLVVXSSOLHG
/LQH9ROWDJH6HOH.WLRQDQG/LQH)XVHV
%HIRUHSOXJJLQJLQWKHOLQH.RUGHQVXUHWKDWWKHPRGHOLVVHWWRWKHYROWDJHRIWKH
$&SRZHUVXSSO\WREHXVHG
$GHWDLOHGGLV.XVVLRQRIKRZWR.KH.NDQGLIQH.HVVDU\.KDQJHWKHOLQHYROWDJHVHWWLQJ
IROORZV
&$87,217KHPRGHOPD\EHGDPDJHGLIWKHOLQHYROWDJHLVVHWIRU9$&
RSHUDWLRQDQGLWLVWXUQHGRQZLWK9$&DSSOLHGWRWKHSRZHULQSXW.RQQH.WRU
7KHPRGHO.DQRSHUDWHIURPDQ\RQHRIIRXUGLIIHUHQWOLQHYROWDJHUDQJHV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 14/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
999DQG9DW+]7KH.KDQJHIURPRQH
UDQJHWRDQRWKHULVPDGHE\UHSRVLWLRQLQJDSOXJLQEDUUHOVHOH.WRULQWHUQDOWRWKH/LQH
,QSXW$VVHPEO\RQWKHUHDUSDQHORIWKHXQLW,QVWUXPHQWVDUHQRUPDOO\VKLSSHGIURP
WKHID.WRU\ZLWKWKHOLQHYROWDJHVHOH.WRUVHWWR9$&XQOHVVWKH\DUHGHVWLQHG
IRUDQDUHDNQRZQWRXVHDOLQHYROWDJHLQWKH9UDQJHLQZKL.K.DVHWKH\DUH
VKLSSHG.RQILJXUHGIRURSHUDWLRQIURPWKHKLJKHUUDQJH
7KHOLQHYROWDJHVHWWLQJ.DQEHVHHQWKURXJKDVPDOOUH.WDQJXODUZLQGRZLQWKHOLQH
LQSXWDVVHPEO\RQWKHUHDUSDQHORIWKHLQVWUXPHQWILJXUH,IWKHQXPEHUVKRZLQJ
LVLQ.RUUH.WIRUWKHSUHYDLOLQJOLQHYROWDJHUHIHUWRWDEOHWKHQWKHEDUUHOVHOH.WRU
ZLOOQHHGWREHUHSRVLWLRQHGDVIROORZV
2EVHUYLQJWKHLQVWUXPHQWIURPWKHUHDUQRWHWKHSODVWL.GRRULPPHGLDWHO\DGMD.HQWWR
WKHOLQH.RUG.RQQH.WRUILJXUHRQWKHOHIWKDQGVLGHRIWKHLQVWUXPHQW:KHQWKH
OLQH.RUGLVUHPRYHGIURPWKHUHDUSDQHO.RQQH.WRUWKHSODVWL.GRRU.DQEHRSHQHG
RXWZDUGVE\SOD.LQJDVPDOOIODWEODGHGV.UHZGULYHULQWKHVORWRQWKHULJKWKDQGVLGH
DQGOHYHULQJJHQWO\7KLVJLYHVD..HVVWRWKHIXVHDQGWRWKHYROWDJHEDUUHOVHOH.WRU
ZKL.KLVOR.DWHGDWWKHULJKWKDQGHGJHRIWKHIXVH.RPSDUWPHQW5HPRYHWKHEDUUHO
VHOH.WRUZLWKWKHDLGRIDVPDOOV.UHZGULYHURUVLPLODUWRRO:LWKWKHEDUUHOVHOH.WRU
UHPRYHGIRXUQXPEHUVEH.RPHYLVLEOHRQLWDQGRQO\RQHRI
ZKL.KLVYLVLEOHZKHQWKHGRRULV.ORVHG7DEOHLQGL.DWHVWKHD.WXDOOLQHYROWDJH
UDQJHUHSUHVHQWHGE\HD.KQXPEHU3RVLWLRQWKHEDUUHOVHOH.WRUVX.KWKDWWKHUHTXLUHG
QXPEHUVHHWDEOHZLOOEHYLVLEOHZKHQWKHEDUUHOVHOH.WRULVLQVHUWHGDQGWKHGRRU
.ORVHG
)LJXUH/LQH,QSXW$VVHPEO\
9,6,%/( 92/7$*(5$1*(
9
9
9
9
7DEOH5DQJHYV%DUUHO3RVLWLRQ
1H[W.KH.NWKHIXVHUDWLQJ)RURSHUDWLRQIURPDQRPLQDOOLQHYROWDJHRI9RU
9XVHDPPVORZEORZIXVHUDWHGDW$9)RURSHUDWLRQIURPD
QRPLQDOOLQHYROWDJHRI9RU9XVHDPPVORZEORZIXVHUDWHGDW$
9
7R.KDQJHWKHIXVHILUVWUHPRYHWKHIXVHKROGHUE\SXOOLQJWKHSODVWL.WDEPDUNHGZLWK
DQDUURZ5HPRYHWKHIXVHDQGUHSOD.HZLWKDVORZEORZIXVHRIWKH.RUUH.WYROWDJH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 15/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
DQG.XUUHQWUDWLQJ,QVWDOOWKHIXVHKROGHUE\VOLGLQJLWLQWRSOD.HPDNLQJVXUHWKH
DUURZRQWKHSODVWL.WDELVSRLQWLQJGRZQZDUGV:KHQWKHSURSHUIXVHKDVEHHQ
LQVWDOOHG.ORVHWKHSODVWL.GRRUILUPO\7KH.RUUH.WVHOH.WHGYROWDJHVHWWLQJVKRXOGQRZ
EHVKRZLQJWKURXJKWKHUH.WDQJXODUZLQGRZ(QVXUHWKDWRQO\IXVHVZLWKWKHUHTXLUHG
.XUUHQWDQGYROWDJHUDWLQJVDQGRIWKHVSH.LILHGW\SHDUHXVHGIRUUHSOD.HPHQW7KHXVH
RIPDNHVKLIWIXVHVDQGWKHVKRUW.LU.XLWLQJRIIXVHKROGHUVLVSURKLELWHGDQGSRWHQWLDOO\
GDQJHURXV
,QLWLDO&KH.NV
,QWURGX.WLRQ
7KHIROORZLQJSUR.HGXUH.KH.NVWKHSHUIRUPDQ.HRIWKHPRGHO,QJHQHUDOWKLV
SUR.HGXUHVKRXOGEH.DUULHGRXWDIWHULQVSH.WLQJWKHLQVWUXPHQWIRUREYLRXVVKLSSLQJ
GDPDJH
127($Q\GDPDJHPXVWEHUHSRUWHGWRWKH.DUULHUDQGWR.$")'-*1-4
LPPHGLDWHO\,QDGGLWLRQWKHVKLSSLQJ.RQWDLQHUPXVWEHUHWDLQHGIRULQVSH.WLRQE\WKH.DUULHU
1RWHWKDWWKLVSUR.HGXUHLVLQWHQGHGWRGHPRQVWUDWHWKDWWKHLQVWUXPHQWKDVDUULYHGLQ
JRRGZRUNLQJRUGHUQRWWKDWLWPHHWVVSH.LIL.DWLRQV(D.KLQVWUXPHQWUH.HLYHVD.DUHIXO
DQGWKRURXJK.KH.NRXWEHIRUHOHDYLQJWKHID.WRU\DQGQRUPDOO\LIQRVKLSSLQJGDPDJH
KDVR..XUUHGZLOOSHUIRUPZLWKLQWKHOLPLWVRIWKHTXRWHGVSH.LIL.DWLRQV,IDQ\
SUREOHPVDUHHQ.RXQWHUHGLQ.DUU\LQJRXWWKHVH.KH.NV.RQWD.W
.$")'-*1-4 RUWKHQHDUHVWDXWKRUL]HGUHSUHVHQWDWLYHIRUDVVLVWDQ.H
3UR.HGXUH
(QVXUHWKDWWKHPRGHOLVVHWWRWKHOLQHYROWDJHRIWKHSRZHUVRXU.HWREHXVHGDVGHV.ULEHGLQVH.WLRQ
:LWKWKHUHDUSDQHOPRXQWHGSRZHUVZLW.KOR.DWHGWRWKHULJKWRIWKHOLQHSRZHU
LQSXW.RQQH.WRUVHWWRRIISOXJLQWKHOLQH.RUGWRDQDSSURSULDWHOLQHVRXU.H
7XUQWKHPRGHOSRZHUVZLW.KWRWKH,RQSRVLWLRQ
7KHLQVWUXPHQWVIURQWSDQHOGLVSOD\ZLOOQRZEULHIO\GLVSOD\WKHIROORZLQJ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 16/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
)LJXUH2SHQLQJ'LVSOD\
:DLWXQWLOWKHRSHQLQJGLVSOD\KDV.KDQJHGWRWKH0DLQ'LVSOD\DQGWKHQSUHVVWKH
NH\XQGHUWKHERWWRPULJKWKDQG.RUQHURIWKHGLVSOD\LGHQWLILHGE\WKHOHJHQG
0(18RQWKHGLVSOD\7KLVHQWHUVWKHILUVWRIWKHWZRPDLQPHQXV0DLQ0HQX
VKRZQEHORZLQILJXUH
)LJXUH0DLQ0HQX
3UHVVRQHRIWKHNH\VDGMD.HQWWRWKH$XWRIXQ.WLRQVPHQXLWHPWRHQWHUWKH$XWR
)XQ.WLRQVPHQXVKRZQEHORZLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 17/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
)LJXUH$XWR)XQ.WLRQV0HQX
3UHVVRQHRIWKHNH\VDGMD.HQWWRWKH$XWR'HIDXOWPHQXLWHP7KLVZLOOVHWDOORI
WKHLQVWUXPHQWV.RQWUROVDQGWKHGLVSOD\WRDGHILQHGVWDWH7KHGLVSOD\ZLOOUHYHUW
WRWKH0DLQ'LVSOD\DVVKRZQEHORZLQILJXUHZLWKWKHULJKWKDQGVLGH
VKRZLQJWKHYH.WRUPDJQLWXGH5DQGWKHSKDVHDQJOHTRIWKHPHDVXUHGVLJQDOLQ
GLJLWDOIRUPZLWKWZREDUJUDSKVVKRZLQJWKH;.KDQQHORXWSXWDQG<.KDQQHO
RXWSXWH[SUHVVHGLQPLOOLYROWV7KHOHIWKDQGVLGHVKRZVILYHLQVWUXPHQW.RQWUROV
WKHVHEHLQJWKH$&*DLQLQGH.LEHOVIXOOV.DOHVHQVLWLYLW\RXWSXWWLPH.RQVWDQW
UHIHUHQ.HSKDVHDQGLQWHUQDORV.LOODWRUIUHTXHQ.\7KHUHVXOWLQJG\QDPL.UHVHUYH
'5LQGH.LEHOVLVDOVRVKRZQ
)LJXUH0DLQ'LVSOD\
&RQQH.WD%1&.DEOHEHWZHHQWKH26&287DQG$LQSXW.RQQH.WRUVRQWKHIURQW
SDQHO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 18/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
7KHULJKWKDQGVLGHRIWKHGLVSOD\VKRXOGQRZLQGL.DWH5WKHYH.WRUPDJQLWXGH
.ORVHWRRIIXOOV.DOHLHWKHVLQXVRLGDORV.LOODWRURXWSXWZKL.KZDVVHWWR
N+]DQGDVLJQDOOHYHORI9UPVE\WKH$XWR'HIDXOWIXQ.WLRQLVEHLQJ
PHDVXUHGZLWKDIXOOV.DOHVHQVLWLYLW\RIP9UPVDQGTWKHSKDVHDQJOHRI
QHDU]HURGHJUHHVLIDVKRUW.DEOHLVXVHG
7KLV.RPSOHWHVWKHLQLWLDO.KH.NV(YHQWKRXJKWKHSUR.HGXUHOHDYHVPDQ\IXQ.WLRQVXQWHVWHGLIWKHLQGL.DWHGUHVXOWVZHUHREWDLQHGWKHQWKHXVHU.DQEHUHDVRQDEO\VXUH
WKDWWKHXQLWLQ.XUUHGQRKLGGHQGDPDJHLQVKLSPHQWDQGLVLQJRRGZRUNLQJRUGHU
/LQH)UHTXHQ.\)LOWHU$GMXVWPHQW
,QWURGX.WLRQ
7KHPRGHOLQ.RUSRUDWHVDOLQHIUHTXHQ.\UHMH.WLRQILOWHUZKL.KLVQRUPDOO\
VXSSOLHGVHWWR+],IWKHSRZHUOLQHIUHTXHQ.\RIWKH.RXQWU\LQZKL.KWKH
LQVWUXPHQWLVWREHXVHGLVDOVR+]WKHQWKHVHWWLQJGRHVQRWQHHGWREH.KDQJHG,I
KRZHYHUWKHXQLWLVWREHXVHGLQDQDUHDZLWKD+]SRZHUOLQHIUHTXHQ.\WKHVHWWLQJVKRXOGEH.KDQJHGXVLQJWKHIROORZLQJSUR.HGXUH
3UR.HGXUH
7XUQWKHPRGHO¶VSRZHUVZLW.KWRWKH,RQSRVLWLRQ
7KHLQVWUXPHQWVIURQWSDQHOGLVSOD\ZLOOQRZEULHIO\GLVSOD\WKHIROORZLQJ
)LJXUH2SHQLQJ'LVSOD\
:DLWXQWLOWKHRSHQLQJGLVSOD\KDV.KDQJHGWRWKH0DLQ'LVSOD\DQGWKHQSUHVVWKH
NH\XQGHUWKHERWWRPULJKWKDQG.RUQHURIWKHGLVSOD\LGHQWLILHGE\WKHOHJHQG
0(18RQWKHGLVSOD\RQ.H7KLVHQWHUVWKHILUVWRIWKHWZRPDLQPHQXV0DLQ
0HQXVKRZQEHORZLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 19/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
)LJXUH0DLQ0HQX
3UHVVRQHRIWKHNH\VDGMD.HQWWRWKH&RQILJXUDWLRQPHQXLWHPWRHQWHUWKH
&RQILJXUDWLRQPHQXVKRZQEHORZLQILJXUH
)LJXUH&RQILJXUDWLRQ0HQX
7KHSUHVHQWOLQHIUHTXHQ.\VHWWLQJLVVKRZQLQUHYHUVHGWH[WDGMD.HQWWRWKH
/,1()5(48(1&<ODEHODQGLVHLWKHURU+],QILJXUHWKHILOWHULVVHW
WR+],IWKLVVHWWLQJGRHVQRWPDW.KWKHSUHYDLOLQJOLQHIUHTXHQ.\WKHQSUHVVD
NH\DGMD.HQWWRWKLVLWHPRQ.HWR.KDQJHLW
3UHVVWKHNH\PDUNHG0$,1',63/$<RQ.HWRUHWXUQWRWKH0DLQ'LVSOD\
7KLV.RPSOHWHVWKHSUR.HGXUHIRUDGMXVWLQJWKHOLQHIUHTXHQ.\ILOWHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 20/217
&KDSWHU,167$//$7,21,1,7,$/&+(&.6
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 21/217
7H.KQL.DO'HV.ULSWLRQ&KDSWHU
,QWURGX.WLRQ
7KHPRGHOOR.NLQDPSOLILHULVDVRSKLVWL.DWHGLQVWUXPHQWZLWKPDQ\.DSDELOLWLHV
EH\RQGWKRVHIRXQGLQRWKHUOR.NLQDPSOLILHUV7KLV.KDSWHUGLV.XVVHVWKHYDULRXV
RSHUDWLQJPRGHVSURYLGHGDQGWKHQGHV.ULEHVWKHGHVLJQRIWKHLQVWUXPHQWE\
.RQVLGHULQJLWDVDVHULHVRIIXQ.WLRQDOEOR.NV,QDGGLWLRQWRGHV.ULELQJKRZHD.KEOR.N
RSHUDWHVWKHVH.WLRQVDOVRLQ.OXGHLQIRUPDWLRQRQWKHHIIH.WRIWKHYDULRXV.RQWUROV
2SHUDWLQJ0RGHV
,QWURGX.WLRQ
7KHPRGHOLQ.RUSRUDWHVDQXPEHURIGLIIHUHQWRSHUDWLQJPRGHVZKL.KDUH
UHIHUUHGWRLQWKHIROORZLQJWH.KQL.DOGHV.ULSWLRQVRLQRUGHUWRKHOSWKHUHDGHUV
XQGHUVWDQGLQJWKH\DUHGHILQHGKHUH
6LQJOH5HIHUHQ.H'XDO5HIHUHQ.H
&RQYHQWLRQDOO\DOR.NLQDPSOLILHUPDNHVPHDVXUHPHQWVVX.KDVVLJQDOPDJQLWXGH
SKDVHHW.RQWKHDSSOLHGVLJQDODWDVLQJOHUHIHUHQ.HIUHTXHQ.\,QWKHPRGHOWKLV
LVUHIHUUHGWRDVWKHVLQJOHUHIHUHQ.HPRGH
7KHGXDOUHIHUHQ.HPRGHLQ.RUSRUDWHGLQWKHPRGHODOORZVWKHLQVWUXPHQWWR
PDNHVLPXOWDQHRXVPHDVXUHPHQWVDWWZRGLIIHUHQWUHIHUHQ.HIUHTXHQ.LHVDQDELOLW\WKDW
SUHYLRXVO\UHTXLUHGWZROR.NLQDPSOLILHUV7KLVIOH[LELOLW\LQ.XUVDIHZUHVWUL.WLRQV
VX.KDVWKHUHTXLUHPHQWWKDWRQHRIWKHUHIHUHQ.HVLJQDOVEHH[WHUQDODQGWKHRWKHUEH
GHULYHGIURPWKHLQWHUQDORV.LOODWRUWKHOLPLWDWLRQRIWKHPD[LPXPRSHUDWLQJIUHTXHQ.\WRN+]XQOHVVWKHXQLWLVHTXLSSHGZLWKWKHRUH[WHQGHGIUHTXHQ.\
RSWLRQVDQGWKHUHTXLUHPHQWWKDWERWKVLJQDOVEHSDVVHGWKURXJKWKHVDPHLQSXWVLJQDO
.KDQQHO7KLVODVWUHVWUL.WLRQLPSOLHVHLWKHUWKDWERWKVLJQDOVDUHGHULYHGIURPWKHVDPH
GHWH.WRUIRUH[DPSOHWZR.KRSSHGOLJKWEHDPVIDOOLQJRQWRDVLQJOHSKRWRGLRGHRUWKDW
WKH\.DQEHVXPPHGSULRUWRPHDVXUHPHQWHLWKHUH[WHUQDOO\RUE\XVLQJWKHGLIIHUHQWLDO
LQSXWPRGHRIWKHLQVWUXPHQW1HYHUWKHOHVVWKHPRGHZLOOSURYHLQYDOXDEOHLQPDQ\
H[SHULPHQWV
6LQJOH+DUPRQL.'XDO+DUPRQL.
1RUPDOO\DOR.NLQDPSOLILHUPHDVXUHVWKHDSSOLHGVLJQDODWWKHUHIHUHQ.HIUHTXHQ.\
+RZHYHULQVRPHDSSOL.DWLRQVVX.KDV$XJHU6SH.WURV.RS\DQGDPSOLILHU .KDUD.WHUL]DWLRQLWLVXVHIXOWREHDEOHWRPDNHPHDVXUHPHQWVDWVRPHPXOWLSOHQRU
KDUPRQL.RIWKHUHIHUHQ.HIUHTXHQ.\ I 7KHPRGHODOORZVWKLVPXOWLSOHWREHVHW
WRDQ\YDOXHEHWZHHQLHWKHVH.RQGKDUPRQL.DQGDVZHOODVXQLW\ZKL.KLVWKH
QRUPDOPRGH7KHRQO\UHVWUL.WLRQLVWKDWWKHSURGX.WQî I .DQQRWH[.HHG0+]
'XDOKDUPRQL.PRGHDOORZVWKHVLPXOWDQHRXVPHDVXUHPHQWRIWZRGLIIHUHQWKDUPRQL.V
RIWKHLQSXWVLJQDO$VZLWKGXDOUHIHUHQ.HPRGHWKHUHDUHDIHZUHVWUL.WLRQVVX.KDVD
PD[LPXPYDOXHRIQî I RIN+]N+]ZLWKWKHRSWLRQRU0+]ZLWKWKH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 22/217
&KDSWHU7(&+1,&$/'(6&5,37,21
RSWLRQ
,QWHUQDO([WHUQDO5HIHUHQ.H0RGH
,QWKHLQWHUQDOUHIHUHQ.HPRGHWKHLQVWUXPHQWVUHIHUHQ.HIUHTXHQ.\LVGHULYHGIURPLWV
LQWHUQDORV.LOODWRUDQGWKHRV.LOODWRUVLJQDOLVXVHGWRGULYHWKHH[SHULPHQW
,QWKHH[WHUQDOUHIHUHQ.HPRGHWKHH[SHULPHQWLQ.OXGHVVRPHGHYL.HIRUH[DPSOHDQ
RSWL.DO.KRSSHUZKL.KJHQHUDWHVDUHIHUHQ.HIUHTXHQ.\WKDWLVDSSOLHGWRRQHRIWKH
OR.NLQDPSOLILHUVH[WHUQDOUHIHUHQ.HLQSXWV7KHLQVWUXPHQWVUHIHUHQ.H.KDQQHO
OR.NVWRWKLVVLJQDODQGXVHVLWWRPHDVXUHWKHDSSOLHGLQSXWVLJQDO
9LUWXDO5HIHUHQ.H0RGH
,IWKHLQVWUXPHQWLVRSHUDWHGLQLQWHUQDOUHIHUHQ.HPRGHPHDVXULQJDVLJQDOZKL.KLV
SKDVHOR.NHGWRWKHLQWHUQDORV.LOODWRUZLWKWKHUHIHUHQ.HSKDVH.RUUH.WO\DGMXVWHGWKHQ
LWZLOOJHQHUDWHDVWDEOHQRQ]HUR;.KDQQHORXWSXWDQGD]HUR<.KDQQHORXWSXW,I
KRZHYHUWKHVLJQDOLVGHULYHGIURPDVHSDUDWHRV.LOODWRUWKHQWKH;.KDQQHODQG
<.KDQQHORXWSXWVZLOOVKRZYDULDWLRQVDWDIUHTXHQ.\HTXDOWRWKHGLIIHUHQ.HEHWZHHQWKHVLJQDODQGLQWHUQDORV.LOODWRUIUHTXHQ.LHV,IWKHODWWHULVQRZVHWWREHHTXDOWRWKH
IRUPHUWKHQLQSULQ.LSOHWKHYDULDWLRQLQWKHRXWSXWVZLOO.HDVHEXWLQSUD.WL.HWKLVZLOO
QRWKDSSHQEH.DXVHRIVORZ.KDQJHVLQWKHUHODWLYHSKDVHRIWKHWZRRV.LOODWRUV
,QWKHYLUWXDOUHIHUHQ.HPRGHEHOLHYHGWREHXQLTXHWR.$")'-*1-4 OR.NLQ
DPSOLILHUVWKH<.KDQQHORXWSXWLVXVHGWRPDNH.RQWLQXRXVDGMXVWPHQWVWRWKHLQWHUQDO
RV.LOODWRUIUHTXHQ.\DQGSKDVHWRD.KLHYHSKDVHOR.NZLWKWKHDSSOLHGVLJQDOVX.KWKDW
WKH;.KDQQHORXWSXWLVPD[LPL]HGDQGWKH<.KDQQHORXWSXW]HURHG
,IWKHLQVWUXPHQWLV.RUUH.WO\DGMXVWHGSDUWL.XODUO\HQVXULQJWKDWWKHIXOOV.DOH
VHQVLWLYLW\.RQWUROLVPDLQWDLQHGDWDVXLWDEOHVHWWLQJLQUHODWLRQWR.KDQJHVLQWKHVLJQDO
OHYHOWKHQWKHYLUWXDOUHIHUHQ.HPRGHLV.DSDEOHRIPDNLQJVLJQDOUH.RYHU\
PHDVXUHPHQWVZKL.KDUHQRWSRVVLEOHZLWKPRVWRWKHUOR.NLQDPSOLILHUV
3ULQ.LSOHVRI2SHUDWLRQ
%OR.N'LDJUDP
7KHPRGHOXVHVGLJLWDOVLJQDOSUR.HVVLQJ'63WH.KQLTXHVLPSOHPHQWHGLQILHOG
SURJUDPPDEOHJDWHDUUD\V)3*$DPL.URSUR.HVVRUDQGYHU\ORZQRLVHDQDORJ
.LU.XLWU\WRD.KLHYHLWVVSH.LIL.DWLRQV$EOR.NGLDJUDPRIWKHLQVWUXPHQWLVVKRZQLQ
ILJXUH7KHVH.WLRQVWKDWIROORZGHV.ULEHKRZHD.KIXQ.WLRQDOEOR.NRSHUDWHVDQG
WKHHIIH.WLWKDVRQWKHLQVWUXPHQWVSHUIRUPDQ.H
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 23/217
&KDSWHU7(&+1,&$/'(6&5,37,21
)LJXUH0RGHO%OR.N'LDJUDP
6LJQDO&KDQQHO,QSXWV
7KHVLJQDOLQSXWDPSOLILHU.DQEHVHWIRUHLWKHUVLQJOHHQGHGRUGLIIHUHQWLDOYROWDJH
PRGHRSHUDWLRQRUVLQJOHHQGHG.XUUHQWPRGHRSHUDWLRQ,QYROWDJHPRGHD.KRL.HRI
$&RU'&.RXSOLQJLVDYDLODEOHXVLQJDQ)(7LQSXWGHYL.H,Q.XUUHQWPRGHD.KRL.H
RIWKUHH.RQYHUVLRQJDLQVLVDYDLODEOHWRJLYHRSWLPXPPDW.KLQJWRWKHDSSOLHGVLJQDO
,QERWKPRGHVWKHLQSXW.RQQH.WRUVKHOOVPD\EHHLWKHUIORDWHGYLDDN :UHVLVWRURU
JURXQGHGWRWKHLQVWUXPHQWV.KDVVLVJURXQG7KHVHYDULRXVIHDWXUHVDUHGLV.XVVHGLQ
WKHIROORZLQJSDUDJUDSKV
,QSXW&RQQH.WRU6HOH.WLRQ$%$%
:KHQVHWWRWKH$PRGHWKHOR.NLQDPSOLILHUPHDVXUHVWKHYROWDJHEHWZHHQWKH.HQWHU
DQGWKHVKHOORIWKH$LQSXW%1&.RQQH.WRUZKHUHDVZKHQVHWWRWKH$%PRGHLW
PHDVXUHVWKHGLIIHUHQ.HLQYROWDJHEHWZHHQWKH.HQWHUSLQVRIWKH$DQG%,LQSXW%1&
.RQQH.WRUV
7KHODWWHUGLIIHUHQWLDOPRGHLVRIWHQXVHGWRHOLPLQDWHJURXQGORRSVDOWKRXJKLWLV
ZRUWKQRWLQJWKDWDWYHU\ORZVLJQDOOHYHOVLWPD\EHSRVVLEOHWRPDNHDVXEVWDQWLDO
UHGX.WLRQLQXQZDQWHGRIIVHWVE\XVLQJWKLVPRGHZLWKDVKRUW.LU.XLWWHUPLQDWRURQWKH
%,.RQQH.WRUUDWKHUWKDQE\VLPSO\XVLQJWKH$LQSXWPRGH
7KHVSH.LIL.DWLRQGHILQHGDVWKH&RPPRQ0RGH5HMH.WLRQ5DWLR&055GHV.ULEHVKRZZHOOWKHLQVWUXPHQWUHMH.WV.RPPRQPRGHVLJQDOVDSSOLHGWRWKH$DQG%,LQSXWV
ZKHQRSHUDWLQJLQGLIIHUHQWLDOLQSXWPRGH,WLVXVXDOO\JLYHQLQGH.LEHOV+HQ.HD
VSH.LIL.DWLRQRI!G%LPSOLHVWKDWD.RPPRQPRGHVLJQDOLHDVLJQDO
VLPXOWDQHRXVO\DSSOLHGWRERWK$DQG%,LQSXWVRI9ZLOOJLYHULVHWROHVVWKDQ
9RIVLJQDORXWRIWKHLQSXWDPSOLILHU
7KHLQSXW.DQDOVREHVHWWRWKH%PRGHLQZKL.K.DVHWKHOR.NLQDPSOLILHUPHDVXUHV
WKHYROWDJHEHWZHHQWKH.HQWHUDQGWKHVKHOORIWKH%,LQSXW.RQQH.WRU7KLVH[WUD
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 24/217
&KDSWHU7(&+1,&$/'(6&5,37,21
PRGHHIIH.WLYHO\DOORZVWKHLQSXWWREHPXOWLSOH[HGEHWZHHQWZRGLIIHUHQWVLQJOHHQGHG
VLJQDOVVXEMH.WWRWKHOLPLWDWLRQWKDWWKHXVHUPXVWDOORZIRUWKHVLJQDOLQYHUVLRQ
HTXLYDOHQWWRDSKDVHVKLIWZKL.KLWLQWURGX.HVZKHQUHDGLQJWKHRXWSXWV
,QSXW&RQQH.WRU6KHOO*URXQG)ORDW
7KHLQSXW.RQQH.WRUVKHOOVPD\EH.RQQH.WHGHLWKHUGLUH.WO\WRWKHLQVWUXPHQWV.KDVVLV
JURXQGRUIORDWHGYLDDN :UHVLVWRU:KHQLQWKHIORDWPRGHWKHSUHVHQ.HRIWKLVUHVLVWRUVXEVWDQWLDOO\UHGX.HVWKHSUREOHPVZKL.KRIWHQR..XULQORZOHYHOOR.NLQ
DPSOLILHUPHDVXUHPHQWVGXHWRJURXQGORRSV
,QSXW&RXSOLQJ0RGH)DVW6ORZ
:KHQWKHLQSXW.RXSOLQJPRGHLVVHWWR6ORZWKHVLJQDO.KDQQHOJDLQLVHVVHQWLDOO\IODW
GRZQWR+]EXWUH.RYHU\IURPLQSXWRYHUORDG.RQGLWLRQVPD\WDNHDORQJWLPH
&RQYHUVHO\ZKHQWKH.RXSOLQJPRGHLVVHWWR)DVWUH.RYHU\IURPRYHUORDGLVPX.K
IDVWHUEXWWKHUHZLOOEHDQRWL.HDEOHUROORIILQPDJQLWXGHUHVSRQVHDQGVLJQLIL.DQW
SKDVHVKLIWVDWIUHTXHQ.LHVEHORZW\SL.DOO\+]
,QSXW6LJQDO6HOH.WLRQ9,
$OWKRXJKWKHYROWDJHPRGHLQSXWLVPRVW.RPPRQO\XVHGD.XUUHQWWRYROWDJH
.RQYHUWHUPD\EHVZLW.KHGLQWRXVHWRSURYLGH.XUUHQWPRGHLQSXW.DSDELOLW\LQZKL.K
.DVHWKHVLJQDOLV.RQQH.WHGWRWKH%,.RQQH.WRU+LJKLPSHGDQ.HVRXU.HV!N :
DUHLQKHUHQWO\.XUUHQWVRXU.HVDQGQHHGWREHPHDVXUHGZLWKDORZLPSHGDQ.H.XUUHQW
PRGHLQSXW(YHQZKHQGHDOLQJZLWKDYROWDJHVRXU.HLQVHULHVZLWKDKLJKLPSHGDQ.H
WKHXVHRIWKH.XUUHQWPRGHLQSXWPD\SURYLGHDGYDQWDJHVLQWHUPVRILPSURYHG
EDQGZLGWKDQGLPPXQLW\IURPWKHHIIH.WVRI.DEOH.DSD.LWDQ.H
7KH.RQYHUWHUPD\EHVHWWRORZQRLVHQRUPDORUZLGHEDQGZLGWK.RQYHUVLRQVHWWLQJV
EXWLWVKRXOGEHQRWHGWKDWLIWKHEHVWSRVVLEOHSHUIRUPDQ.HLVUHTXLUHGDVHSDUDWH
.XUUHQWSUHDPSOLILHUVX.KDVWKH.$")'-*1-4 PRGHOVRUVKRXOG
EH.RQVLGHUHG
/LQH)UHTXHQ.\5HMH.WLRQ)LOWHU
)ROORZLQJWKHVLJQDOLQSXWDPSOLILHUWKHUHLVDQRSWLRQWRSDVVWKHVLJQDOWKURXJKDOLQH
IUHTXHQ.\UHMH.WLRQILOWHUZKL.KLVGHVLJQHGWRJLYHJUHDWHUWKDQG%RIDWWHQXDWLRQ
DWWKHSRZHUOLQHIUHTXHQ.LHVRI+]RU+]DQGWKHLUVH.RQGKDUPRQL.VDW+]
DQG+]
7KHILOWHUXVHVWZR.DV.DGHGUHMH.WLRQVWDJHVZLWKQRW.K.KDUD.WHULVWL.VDOORZLQJLW
WREHVHWWRUHMH.WVLJQDOVDWIUHTXHQ.LHVHTXDOWRHLWKHURIRUERWKRIWKHIXQGDPHQWDO
DQGVH.RQGKDUPRQL.RIWKHOLQHIUHTXHQ.\
,QVWUXPHQWVDUHQRUPDOO\VXSSOLHGZLWKWKHOLQHIUHTXHQ.\ILOWHUVHWWR+]ZLWKWKH
ILOWHUWXUQHGRII,IWKHSUHYDLOLQJOLQHIUHTXHQ.\LV+]WKHQWKHILOWHUIUHTXHQ.\
VKRXOGEHVHWWRWKLVYDOXHXVLQJWKH.RQWURORQWKH&RQILJXUDWLRQPHQXVHHVH.WLRQ
$&*DLQDQG'\QDPL.5HVHUYH
7KHVLJQDO.KDQQHO.RQWDLQVDQXPEHURIDQDORJILOWHUVDQGDPSOLILHUVZKRVHRYHUDOO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 25/217
&KDSWHU7(&+1,&$/'(6&5,37,21
JDLQLVGHILQHGE\WKH$&*DLQSDUDPHWHUZKL.KLVVSH.LILHGLQWHUPVRIGH.LEHOVG%
)RUHD.KYDOXHRI$&*DLQWKHUHLVD.RUUHVSRQGLQJYDOXHRIWKH,1387/,0,7
SDUDPHWHUZKL.KLVWKHPD[LPXPLQVWDQWDQHRXVSHDNYROWDJHRU.XUUHQWWKDW.DQEH
DSSOLHGWRWKHLQSXWZLWKRXW.DXVLQJLQSXWRYHUORDGDVVKRZQLQWDEOHEHORZ
$&*DLQG% ,1387/,0,7P9
7DEOH,QSXW/LPLWYV$&*DLQ
,WLVDEDVL.SURSHUW\RIWKHGLJLWDOVLJQDOSUR.HVVLQJ'63OR.NLQDPSOLILHUWKDWWKH
EHVWGHPRGXODWRUSHUIRUPDQ.HLVREWDLQHGE\SUHVHQWLQJDVODUJHDVLJQDODVSRVVLEOHWR
WKHPDLQDQDORJWRGLJLWDO.RQYHUWHU$'&7KHUHIRUHLQSULQ.LSOHWKH$&*DLQ
YDOXHVKRXOGEHPDGHDVODUJHDVSRVVLEOHZLWKRXW.DXVLQJWKHVLJQDO.KDQQHODPSOLILHU
RU.RQYHUWHUWRRYHUORDG7KLV.RQVWUDLQWLVQRWWRR.ULWL.DOKRZHYHUDQGWKHXVHRID
YDOXHRQHRUWZRVWHSVEHORZWKHRSWLPXPYDOXHPDNHVOLWWOHGLIIHUHQ.H1RWHWKDWDV
WKH$&*DLQYDOXHLV.KDQJHGWKHGHPRGXODWRUJDLQGHV.ULEHGODWHULQVH.WLRQ
LVDOVRDGMXVWHGLQRUGHUWRPDLQWDLQWKHVHOH.WHGIXOOV.DOHVHQVLWLYLW\
7KHIXOOV.DOHVHQVLWLYLW\LVVHWE\D.RPELQDWLRQRI$&*DLQDQGGHPRGXODWRUJDLQ6LQ.HWKHGHPRGXODWRUJDLQLVHQWLUHO\GLJLWDO.KDQJHVLQIXOOV.DOHVHQVLWLYLW\ZKL.KGR
QRW.KDQJHWKH$&*DLQGRQRW.DXVHDQ\RIWKHHUURUVZKL.KPLJKWDULVHIURPD
.KDQJHLQWKH$&*DLQ
7KHXVHULVSUHYHQWHGIURPVHWWLQJDQLOOHJDO$&*DLQYDOXHLHRQHWKDWZRXOGUHVXOW
LQRYHUORDGRQDIXOOV.DOHLQSXWVLJQDO6LPLODUO\LIWKHXVHUVHOH.WVDIXOOV.DOH
VHQVLWLYLW\ZKL.K.DXVHVWKHSUHVHQW$&*DLQYDOXHWREHLOOHJDOWKH$&*DLQZLOO
.KDQJHWRWKHQHDUHVWOHJDOYDOXH
,QSUD.WL.HWKLVV\VWHPLVYHU\HDV\WRRSHUDWH+RZHYHUWKHXVHUPD\SUHIHUWRPDNH
XVHRIWKH$8720$7,&$&*DLQIHDWXUHZKL.KJLYHVYHU\JRRGUHVXOWVLQPRVW
.DVHV:KHQWKLVLVD.WLYHWKH$&*DLQLVDXWRPDWL.DOO\.RQWUROOHGE\WKHLQVWUXPHQWZKL.KGHWHUPLQHVWKHRSWLPXPVHWWLQJEDVHGRQWKHIXOOV.DOHVHQVLWLYLW\.XUUHQWO\
EHLQJXVHG
$WDQ\JLYHQVHWWLQJWKHUDWLR
\6HQVLWLYLW6.DOH)XOO
/LPLW,QSXW'5 ×=
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 26/217
&KDSWHU7(&+1,&$/'(6&5,37,21
UHSUHVHQWVWKHID.WRUE\ZKL.KWKHODUJHVWD..HSWDEOHVLQXVRLGDOLQWHUIHUHQ.HLQSXW
H[.HHGVWKHIXOOV.DOHVHQVLWLYLW\DQGLV.DOOHGWKH'\QDPL.5HVHUYHRIWKHOR.NLQ
DPSOLILHUDWWKDWVHWWLQJ7KHID.WRULVDSHDNWRUPV.RQYHUVLRQ7KHG\QDPL.
UHVHUYHLVRIWHQH[SUHVVHGLQGH.LEHOVIRUZKL.K
UDWLRDORJ'5DVG%'5LQ ×=
$SSO\LQJWKLVIRUPXODWRWKHPRGHODWWKHPD[LPXPYDOXHRI,1387/,0,7
9DQGWKHVPDOOHVWDYDLODEOHYDOXHRI)8//6&$/(6(16,7,9,7<Q9
JLYHVDPD[LPXPDYDLODEOHG\QDPL.UHVHUYHRIDERXWîRUG%)LJXUHVRI
WKLVPDJQLWXGHDUHDYDLODEOHIURPDQ\'63OR.NLQDPSOLILHUEXWDUHEDVHGRQO\RQ
DULWKPHWL.DOLGHQWLWLHVDQGGRQRWJLYHDQ\LQGL.DWLRQRIKRZWKHLQVWUXPHQWD.WXDOO\
SHUIRUPV,QID.WDOO.XUUHQW'63OR.NLQDPSOLILHUVEH.RPHWRRQRLV\DQGLQD..XUDWH
IRUPRVWSXUSRVHVDWUHVHUYHVRIJUHDWHUWKDQDERXWG%
)RUWKHEHQHILWRIXVHUVZKRSUHIHUWRKDYHWKH$&*DLQYDOXHH[SUHVVHGLQGH.LEHOV
WKHPRGHOGLVSOD\VWKH.XUUHQWYDOXHRI'\QDPL.5HVHUYH'5LQWKLVIRUPRQ
WKHLQSXWIXOOV.DOHVHQVLWLYLW\.RQWUROIRUYDOXHVXSWRG%$ERYHG%WKH
OHJHQG.KDQJHVWR³'5!´
$QWL$OLDVLQJ)LOWHU
3ULRUWRWKHPDLQDQDORJWRGLJLWDO.RQYHUWHU$'&WKHVLJQDOSDVVHVWKURXJKDQDQWL
DOLDVLQJILOWHUWRUHPRYHXQZDQWHGIUHTXHQ.LHVZKL.KZRXOG.DXVHDVSXULRXVRXWSXW
IURPWKH$'&DVDUHVXOWRIWKHVDPSOLQJSUR.HVV
&RQVLGHUWKHVLWXDWLRQZKHQWKHOR.NLQDPSOLILHULVPHDVXULQJDVLQXVRLGDOVLJQDORI
IUHTXHQ.\ I VLJQDO +]ZKL.KLVVDPSOHGE\WKHPDLQ$'&DWDVDPSOLQJIUHTXHQ.\
I VDPSOLQJ +],QRUGHUWRHQVXUH.RUUH.WRSHUDWLRQRIWKHLQVWUXPHQWWKHRXWSXWYDOXHV
UHSUHVHQWLQJWKH I VLJQDO IUHTXHQ.\PXVWEHXQLTXHO\JHQHUDWHGE\WKHVLJQDOWREHPHDVXUHGDQGQRWE\DQ\RWKHUSUR.HVV
+RZHYHULIWKHLQSXWWRWKH$'&KDVLQDGGLWLRQDQXQZDQWHGVLQXVRLGDOVLJQDOZLWK
IUHTXHQ.\ I +]ZKHUH I LVJUHDWHUWKDQKDOIWKHVDPSOLQJIUHTXHQ.\WKHQWKLVZLOO
DSSHDULQWKHRXWSXWDVDVDPSOHGGDWDVLQXVRLGZLWKIUHTXHQ.\OHVVWKDQKDOIWKH
VDPSOLQJIUHTXHQ.\ I DOLDV_ I QI VDPSOLQJ _ZKHUHQLVDQLQWHJHU7KLVDOLDVVLJQDOLV
LQGLVWLQJXLVKDEOHIURPWKHRXWSXWJHQHUDWHGZKHQDJHQXLQHVLJQDODWIUHTXHQ.\ I DOLDVLV
VDPSOHG+HQ.HLIWKHIUHTXHQ.\RIWKHXQZDQWHGVLJQDOZHUHVX.KWKDWWKHDOLDVVLJQDO
IUHTXHQ.\SURGX.HGIURPLWZDV.ORVHWRRUHTXDOWRWKDWRIWKHZDQWHGVLJQDOWKHQLW
LV.OHDUWKDWDVSXULRXVRXWSXWZRXOGUHVXOW
)RUH[DPSOHLIWKHVDPSOLQJIUHTXHQ.\ZHUH0+]WKHQKDOIWKHVDPSOLQJ
IUHTXHQ.\ZRXOGEH0+]$VVXPHIRUDPRPHQWWKDWWKHLQVWUXPHQW.RXOG
RSHUDWHDWUHIHUHQ.HIUHTXHQ.LHVXSWR0+]DQGOHWLWEHPHDVXULQJDVLJQDORI
N+]D..RPSDQLHGE\DQLQWHUIHULQJVLJQDORI0+]7KHRXWSXWRIWKH$'&
ZRXOGWKHUHIRUHLQ.OXGHDVDPSOHGGDWDVLQXVRLGRIN+]WKHUHTXLUHGVLJQDODQG
DSSO\LQJWKHDERYHIRUPXODDQDOLDVVLJQDORI0+]RUN+]LH_0+]
0+]_,IWKHVLJQDOIUHTXHQ.\ZHUHQRZLQ.UHDVHGWRZDUGVN+]WKHQWKH
RXWSXWRIWKHOR.NLQDPSOLILHUZRXOGLQ.UHDVLQJO\EHDIIH.WHGE\WKHSUHVHQ.HRIWKH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 27/217
&KDSWHU7(&+1,&$/'(6&5,37,21
DOLDVVLJQDODQGWKHD..XUD.\RIWKHPHDVXUHPHQWZRXOGGHWHULRUDWH
7RRYHU.RPHWKLVSUREOHPWKHVLJQDOLVIHGWKURXJKWKHDQWLDOLDVLQJILOWHUZKL.K
UHVWUL.WVWKHVLJQDOEDQGZLGWKWRDQXSSHUIUHTXHQ.\RI0+]7KHILOWHULVD
.RQYHQWLRQDOHOOLSWL.W\SHORZSDVVVWDJHJLYLQJWKHORZHVWSRVVLEOHQRLVHEDQGZLGWK
,WVKRXOGEHQRWHGWKDWWKHG\QDPL.UDQJHRIDOR.NLQDPSOLILHULVQRUPDOO\VRKLJK
WKDWSUD.WL.DODQWLDOLDVILOWHUVDUHQRW.DSDEOHRI.RPSOHWHO\UHPRYLQJWKHHIIH.WRIDIXOOV.DOHDOLDV)RULQVWDQ.HHYHQLIWKHILOWHUJLYHVG%DWWHQXDWLRQDQDOLDVDWWKH
LQSXWOLPLWDQGDWWKHUHIHUHQ.HIUHTXHQ.\ZLOOJLYHDRQHSHU.HQWRXWSXWHUURUZKHQWKH
G\QDPL.UHVHUYHLVVHWWRG%RUDWHQSHU.HQWHUURUZKHQWKHG\QDPL.UHVHUYHLVVHW
WRG%
,QDW\SL.DOORZOHYHOVLJQDOUH.RYHU\VLWXDWLRQPDQ\XQZDQWHGLQSXWVQHHGWREHGHDOW
ZLWKDQGLWLVQRUPDOSUD.WL.HWRPDNHVPDOODGMXVWPHQWVWRWKHUHIHUHQ.HIUHTXHQ.\
XQWLOD.OHDUSRLQWRQWKHIUHTXHQ.\VSH.WUXPLVUHD.KHG,QWKLV.RQWH[WDQXQZDQWHG
DOLDVLVWUHDWHGDVMXVWDQRWKHULQWHUIHULQJVLJQDODQGLWVIUHTXHQ.\LVDYRLGHGZKHQ
VHWWLQJWKHUHIHUHQ.HIUHTXHQ.\
$EXIIHUHGYHUVLRQRIWKHDQDORJVLJQDOMXVWSULRUWRWKHPDLQ$'&LVDYDLODEOHDWWKH
VLJQDOPRQLWRU6,*021.RQQH.WRURQWKHUHDUSDQHOLWPD\EHYLHZHGRQDQ
RV.LOORV.RSHWRPRQLWRUWKHHIIH.WRIWKHOLQHIUHTXHQ.\UHMH.WLRQDQGDQWLDOLDVLQJ
ILOWHUVDQGVLJQDO.KDQQHODPSOLILHUV
0DLQ$QDORJWR'LJLWDO&RQYHUWHU
)ROORZLQJWKHDQWLDOLDVILOWHUWKHVLJQDOSDVVHVWRWKHPDLQDQDORJWRGLJLWDO.RQYHUWHU
UXQQLQJDWDVDPSOLQJUDWHRI0+]7KHRXWSXWIURPWKH.RQYHUWHUIHHGVWKH
GHPRGXODWRU.LU.XLWU\ZKL.KXVHV'63WH.KQLTXHVWRLPSOHPHQWWKHGLJLWDOPXOWLSOLHUV
DQGWKHILUVWVWDJHRIWKHRXWSXWORZSDVVILOWHULQJIRUHD.KRIWKH;DQG<.KDQQHOV
7KH$'&RXWSXWDOVRSDVVHVWRWKHRXWSXWSUR.HVVRUWRDOORZWKHSRZHUVSH.WUDO
GHQVLW\RIWKHLQSXWVLJQDOWREH.DO.XODWHGXVLQJDGLV.UHWH)RXULHUWUDQVIRUPZKL.KLQ
PDQ\ZD\VLVVLPLODUWRDIDVW)RXULHUWUDQVIRUP))77KHUHVXOWVRIWKLV.DO.XODWLRQ
DUHVKRZQRQWKH6SH.WUDO'LVSOD\PHQX
+RZHYHUEHIRUHGLV.XVVLQJWKHGHPRGXODWRUVDQGWKHRXWSXWVWDJHVRIWKHOR.NLQ
DPSOLILHUWKHUHIHUHQ.H.KDQQHOZKL.KSURYLGHVWKHRWKHULQSXWWRWKHGHPRGXODWRUV
ZLOOEHGHV.ULEHG
5HIHUHQ.H&KDQQHO
7KHUHIHUHQ.H.KDQQHOLQWKHLQVWUXPHQWLVUHVSRQVLEOHIRULPSOHPHQWLQJWKHUHIHUHQ.HWULJJHUSKDVHOR.NHGORRSGLJLWDOSKDVHVKLIWHUDQGLQWHUQDORV.LOODWRUORRNXSWDEOH
IXQ.WLRQDOEOR.NVRQWKHEOR.NGLDJUDPVHHILJXUH7KHSUR.HVVRUJHQHUDWHVD
VHULHVRISKDVHYDOXHVRXWSXWDWDUDWHRIRQHHYHU\QVZKL.KDUHXVHGWRGULYHWKH
UHIHUHQ.H.KDQQHOLQSXWVRIWKHGHPRGXODWRUV
,QGXDOUHIHUHQ.HPRGHRSHUDWLRQDQH[WHUQDOO\GHULYHGUHIHUHQ.HIUHTXHQ.\LV
.RQQH.WHGWRWKHH[WHUQDOUHIHUHQ.HLQSXWDQGDVH.RQGUHIHUHQ.HLVGHULYHGIURPWKH
LQWHUQDORV.LOODWRU7KHUHIHUHQ.H.LU.XLWJHQHUDWHVQHZSKDVHYDOXHVIRUHD.KLQGLYLGXDO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 28/217
&KDSWHU7(&+1,&$/'(6&5,37,21
.KDQQHODQGVHQGVWKHVHWRWKHGHPRGXODWRUV)XUWKHUGLV.XVVLRQRIGXDOUHIHUHQ.H
PRGHR..XUVLQVH.WLRQ
,QVLQJOHKDUPRQL.PRGHWKHUHIHUHQ.H.LU.XLWJHQHUDWHVWKHSKDVHYDOXHVRID
ZDYHIRUPDWWKHVHOH.WHGKDUPRQL.RIWKHUHIHUHQ.HIUHTXHQ.\'XDOKDUPRQL.PRGH
RSHUDWHVLQDVLPLODUZD\WRGXDOUHIHUHQ.HPRGHEXWLQWKLV.DVHWKHUHIHUHQ.H.LU.XLW
JHQHUDWHVSKDVHYDOXHVIRUERWKRIWKHVHOH.WHGKDUPRQL.VRIWKHUHIHUHQ.HIUHTXHQ.\'XDOKDUPRQL.PRGHPD\WKHUHIRUHEHXVHGZLWKHLWKHULQWHUQDORUH[WHUQDOUHIHUHQ.HV
([WHUQDO5HIHUHQ.H0RGH
,QH[WHUQDOUHIHUHQ.HPRGHWKHUHIHUHQ.HVRXU.HPD\EHDSSOLHGWRHLWKHUDJHQHUDO
SXUSRVHLQSXWGHVLJQHGWRD..HSWYLUWXDOO\DQ\SHULRGL.ZDYHIRUPZLWKDPDUN
VSD.HUDWLRDQGRIVXLWDEOHDPSOLWXGHRUWRD77/ORJL.OHYHOLQSXW)ROORZLQJWKH
WULJJHUEXIIHULQJ.LU.XLWU\WKHUHIHUHQ.HVLJQDOLVSDVVHGWRDGLJLWDOSKDVHOR.NHGORRS
3//LPSOHPHQWHGLQWKHUHIHUHQ.H.LU.XLW7KLVPHDVXUHVWKHSHULRGRIWKHDSSOLHG
UHIHUHQ.HZDYHIRUPDQGIURPWKLVJHQHUDWHVWKHSKDVHYDOXHV
,QWHUQDO5HIHUHQ.H0RGH
:LWKLQWHUQDOUHIHUHQ.HRSHUDWLRQWKHUHIHUHQ.H.LU.XLWLVIUHHUXQQLQJDWWKHVHOH.WHG
UHIHUHQ.HIUHTXHQ.\DQGLVQRWGHSHQGHQWRQDSKDVHOR.NHGORRS3//DVLVWKH.DVH
LQPRVWRWKHUOR.NLQDPSOLILHUV&RQVHTXHQWO\WKHSKDVHQRLVHLVH[WUHPHO\ORZDQG
EH.DXVHQRWLPHLVUHTXLUHGIRUD3//WRD.TXLUHOR.NUHIHUHQ.HD.TXLVLWLRQLV
LPPHGLDWH
%RWKWKHVLJQDO.KDQQHODQGWKHUHIHUHQ.H.KDQQHO.RQWDLQ.DOLEUDWLRQSDUDPHWHUVZKL.K
DUHGHSHQGHQWRQWKHUHIHUHQ.HIUHTXHQ.\7KHVHLQ.OXGH.RUUH.WLRQVWRWKHDQWLDOLDV
ILOWHUDQGWRWKHDQDORJ.LU.XLWVLQWKHUHIHUHQ.H.KDQQHO,QH[WHUQDOUHIHUHQ.HRSHUDWLRQ
WKHSUR.HVVRUXVHVDUHIHUHQ.HIUHTXHQ.\PHWHUWRPRQLWRUWKHUHIHUHQ.HIUHTXHQ.\DQG
XSGDWHVWKHVHSDUDPHWHUVZKHQD.KDQJHRIDERXWSHU.HQWKDVEHHQGHWH.WHG
$77/ORJL.VLJQDODWWKHSUHVHQWUHIHUHQ.HIUHTXHQ.\LVSURYLGHGDWWKH5()021
.RQQH.WRURQWKHUHDUSDQHO
3KDVH6KLIWHU
7KHUHIHUHQ.H.LU.XLWDOVRLPSOHPHQWVDGLJLWDOUHIHUHQ.HSKDVHVKLIWHUDOORZLQJWKH
SKDVHYDOXHVEHLQJVHQWWRWKHGHPRGXODWRU'63WREHDGMXVWHGWRWKHUHTXLUHGYDOXH,I
WKHUHIHUHQ.HLQSXWLVDVLQXVRLGDSSOLHGWRWKH5(),1VR.NHWWKHUHIHUHQ.HSKDVHLV
GHILQHGDVWKHSKDVHRIWKH;GHPRGXODWLRQIXQ.WLRQZLWKUHVSH.WWRWKHUHIHUHQ.H
LQSXW
7KLVPHDQVWKDWZKHQWKHUHIHUHQ.HSKDVHLV]HURDQGWKHVLJQDOLQSXWWRWKHGHPRGXODWRULVDIXOOV.DOHVLQXVRLGLQSKDVHZLWKWKHUHIHUHQ.HLQSXWVLQXVRLGWKH;
.KDQQHORXWSXWRIWKHGHPRGXODWRULVDIXOOV.DOHSRVLWLYHYDOXHDQGWKH<.KDQQHO
RXWSXWLV]HUR
7KH.LU.XLWV.RQQH.WHGWRWKH5(),1VR.NHWGHWH.WDSRVLWLYHJRLQJ.URVVLQJRIWKH
PHDQYDOXHRIWKHDSSOLHGUHIHUHQ.HYROWDJH7KHUHIRUHZKHQWKHUHIHUHQ.HLQSXWLVQRW
VLQXVRLGDOLWVHIIH.WLYHSKDVHLVWKHSKDVHRIDVLQXVRLGZLWKDSRVLWLYHJRLQJ]HUR
.URVVLQJDWWKHVDPHSRLQWLQWLPHDQGD..RUGLQJO\WKHUHIHUHQ.HSKDVHLVGHILQHGZLWK
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 29/217
&KDSWHU7(&+1,&$/'(6&5,37,21
UHVSH.WWRWKLVZDYHIRUP6LPLODUO\WKHHIIH.WLYHSKDVHRIDUHIHUHQ.HLQSXWWRWKH
77/5(),1VR.NHWLVWKDWRIDVLQXVRLGZLWKDSRVLWLYHJRLQJ]HUR.URVVLQJDWWKH
VDPHSRLQWLQWLPH
,QEDVL.OR.NLQDPSOLILHUDSSOL.DWLRQVWKHSXUSRVHRIWKHH[SHULPHQWLVWRPHDVXUHWKH
DPSOLWXGHRIDVLJQDOZKL.KLVRIIL[HGIUHTXHQ.\DQGZKRVHSKDVHZLWKUHVSH.WWRWKH
UHIHUHQ.HLQSXWGRHVQRWYDU\7KLVLVWKH V.DODU PHDVXUHPHQWRIWHQLPSOHPHQWHGZLWKD.KRSSHGRSWL.DOEHDP0DQ\RWKHUOR.NLQDPSOLILHUDSSOL.DWLRQVDUHRIWKH VLJQHG
V.DODU W\SHLQZKL.KWKHSXUSRVHRIWKHH[SHULPHQWLVWRPHDVXUHWKHDPSOLWXGHDQG
VLJQRIDVLJQDOZKL.KLVRIIL[HGIUHTXHQ.\DQGZKRVHSKDVHZLWKUHVSH.WWRWKH
UHIHUHQ.HLQSXWGRHVQRWYDU\DSDUWIURPUHYHUVDOVRISKDVH.RUUHVSRQGLQJWR.KDQJHV
LQWKHVLJQRIWKHVLJQDO$ZHOONQRZQH[DPSOHRIWKLVVLWXDWLRQLVWKH.DVHRID
UHVLVWLYHEULGJHRQHDUPRIZKL.K.RQWDLQVWKHVDPSOHWREHPHDVXUHG2WKHUH[DPSOHV
R..XULQGHULYDWLYHVSH.WURV.RS\ZKHUHDVPDOOPRGXODWLRQLVDSSOLHGWRWKHDQJOHRI
WKHJUDWLQJLQRSWL.DOVSH.WURV.RS\RUWRWKHDSSOLHGPDJQHWL.ILHOGLQPDJQHWL.
UHVRQDQ.HVSH.WURV.RS\'RXEOHEHDPVSH.WURV.RS\LVDIXUWKHU.RPPRQH[DPSOH
,QWKLVVLJQHGV.DODUPHDVXUHPHQWWKHSKDVHVKLIWHUPXVWEHVHWDIWHUUHPRYDORIDQ\
]HURHUURUVWRPD[LPL]HWKH;.KDQQHORUWKH<.KDQQHORXWSXWRIWKHGHPRGXODWRU
7KLVLVWKHRQO\PHWKRGWKDWZLOOJLYH.RUUH.WRSHUDWLRQDVWKHRXWSXWVLJQDOSDVVHV
WKURXJK]HURDQGLVDOVRWKHEHVWPHWKRGWREHXVHGLQDQXQVLJQHGV.DODU
PHDVXUHPHQWZKHUHDQ\VLJQLIL.DQWDPRXQWRIQRLVHLVSUHVHQW
,QWHUQDO2V.LOODWRU*HQHUDO
7KHPRGHOLQ.RPPRQZLWKPDQ\RWKHUOR.NLQDPSOLILHUVLQ.RUSRUDWHVDQ
LQWHUQDORV.LOODWRUZKL.KPD\EHXVHGWRGULYHDQH[SHULPHQW+RZHYHUXQOLNHPRVW
RWKHULQVWUXPHQWVWKHRV.LOODWRULQWKHPRGHOLVGLJLWDOO\V\QWKHVL]HGZLWKWKH
UHVXOWWKDWWKHRXWSXWIUHTXHQ.\LVH[WUHPHO\D..XUDWHDQGVWDEOH7KHRV.LOODWRU
RSHUDWHVRYHUWKHVDPHIUHTXHQ.\UDQJHDVWKHOR.NLQDPSOLILHUWKDWLVP+]WR
0+]DQGLVLPSOHPHQWHGXVLQJDGHGL.DWHGGLUH.WGLJLWDOV\QWKHVLV.LU.XLW
,QWHUQDO2V.LOODWRU8SGDWH5DWH
7KHGLUH.WGLJLWDOV\QWKHVLV''6WH.KQLTXHJHQHUDWHVDZDYHIRUPDWWKH'$&RXWSXW
ZKL.KLVQRWDSXUHVLQXVRLGEXWUDWKHUDVWHSSHGDSSUR[LPDWLRQWRRQH7KLVLVWKHQ
ILOWHUHGE\WKHEXIIHUVWDJHZKL.KIROORZVWKH'$&WRUHGX.HWKHKDUPRQL.GLVWRUWLRQ
WRDQD..HSWDEOHOHYHO7KHXSGDWHUDWHLV0+]
,QWHUQDO2V.LOODWRU)UHTXHQ.\$PSOLWXGH6ZHHSV
7KHLQWHUQDORV.LOODWRURXWSXWPD\EHVZHSWLQERWKIUHTXHQ.\DQGDPSOLWXGH,QERWK.DVHVWKHVZHHSVWDNHWKHIRUPRIDVHULHVRIVWHSVEHWZHHQVWDUWLQJDQGILQLVKLQJ
YDOXHV)UHTXHQ.\VZHHSVPD\XVHHTXDOLQ.UHPHQWVWHSVL]HVJLYLQJDOLQHDU.KDQJH
RIIUHTXHQ.\ZLWKWLPHDVWKHVZHHSSUR.HHGVRUPD\XVHVWHSVL]HVSURSRUWLRQDOWRWKH
SUHVHQWIUHTXHQ.\ZKL.KSURGX.HVDORJDULWKPL.VZHHS7KHDPSOLWXGHVZHHSIXQ.WLRQ
RIIHUVRQO\OLQHDUVZHHSV
$VSH.LDOIRUPRIWKHIUHTXHQ.\VZHHSIXQ.WLRQLVXVHGWRD.TXLUHOR.NZKHQWKH
LQVWUXPHQWLVRSHUDWLQJLQWKHYLUWXDOUHIHUHQ.HPRGH:KHQWKLVVHHNVZHHSLV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 30/217
&KDSWHU7(&+1,&$/'(6&5,37,21
D.WLYDWHGWKHRV.LOODWRUVWDUWVDWDXVHUVSH.LILHGIUHTXHQ.\ZKL.KVKRXOGEHMXVW
EHORZWKDWRIWKHDSSOLHGVLJQDODQGLQ.UHPHQWVXQWLOWKH.DO.XODWHGPDJQLWXGHRXWSXW
LVJUHDWHUWKDQ$WWKLVSRLQWWKHVZHHSWKHQVWRSVDQGWKHYLUWXDOUHIHUHQ.HPRGH
D.KLHYHVOR.NE\.RQWLQXRXVO\DGMXVWLQJWKHLQWHUQDORV.LOODWRUIUHTXHQ.\WRPDLQWDLQ
WKH<.KDQQHORXWSXWDW]HUR
,WLVLPSRUWDQWWRQRWHWKDWWKLVW\SHRISKDVHOR.NHGORRSXQOLNHD.RQYHQWLRQDOHGJHWULJJHUHGW\SHXVLQJD.OHDQUHIHUHQ.HGRHVQRWDXWRPDWL.DOO\UHD.TXLUHOR.NDIWHULW
KDVEHHQORVW/R.N.DQEHORVWDVDUHVXOWRIDVLJQDO.KDQQHOWUDQVLHQWRUDSKDVH
UHYHUVDORIWKHVLJQDOLQZKL.K.DVHLWPD\EHQH.HVVDU\WRUHSHDWWKHOR.ND.TXLVLWLRQ
SUR.HGXUH+RZHYHULIWKHPHDVXUHPHQWV\VWHPLVVHWXSZLWKVXIIL.LHQWSUH.DXWLRQV
SDUWL.XODUO\HQVXULQJWKDWWKHIXOOV.DOHVHQVLWLYLW\LVPDLQWDLQHGDWDVXLWDEOHVHWWLQJLQ
UHODWLRQWRWKHVLJQDOOHYHOWKHQWKHYLUWXDOUHIHUHQ.HPRGHLV.DSDEOHRIPDNLQJVLJQDO
UH.RYHU\PHDVXUHPHQWVZKL.KDUHQRWSRVVLEOHZLWKRWKHUOR.NLQDPSOLILHUV
:KHQYLUWXDOUHIHUHQ.HPRGHLVLQXVHWKHVLJQDODWWKH26&287.RQQH.WRULVD
VLQXVRLGZKL.KLVSKDVHOR.NHGWRWKHVLJQDO1DWXUDOO\WKLV.DQQRWEHXVHGDVDVRXU.H
IRUWKHPHDVXUHPHQW
'HPRGXODWRUV
7KHHVVHQWLDORSHUDWLRQRIWKHGHPRGXODWRUVLVWRPXOWLSO\WKHGLJLWL]HGRXWSXWRIWKH
VLJQDO.KDQQHOE\GDWDVHTXHQ.HV.DOOHGWKH;DQG<GHPRGXODWLRQIXQ.WLRQVDQGWR
RSHUDWHRQWKHUHVXOWVZLWKGLJLWDOORZSDVVILOWHUVWKHRXWSXWILOWHUV7KH
GHPRGXODWLRQIXQ.WLRQVZKL.KDUHGHULYHGE\XVHRIDORRNXSWDEOHIURPWKHSKDVH
YDOXHVVXSSOLHGE\WKHUHIHUHQ.H.KDQQHO'63DUHVLQXVRLGVZLWKDIUHTXHQ.\HTXDOWR
DQLQWHJHUPXOWLSOHQîI RIWKHUHIHUHQ.HIUHTXHQ.\ I 7KH<GHPRGXODWLRQIXQ.WLRQLV
WKH;GHPRGXODWLRQIXQ.WLRQGHOD\HGE\DTXDUWHURIDSHULRG7KHLQWHJHUQLV.DOOHG
WKHUHIHUHQ.HKDUPRQL.QXPEHUDQGLQQRUPDOOR.NLQDPSOLILHURSHUDWLRQLVVHWWR
XQLW\7KURXJKRXWWKLV.KDSWHUWKHUHIHUHQ.HKDUPRQL.QXPEHULVDVVXPHGWREHXQLW\
XQOHVVRWKHUZLVHVWDWHG
7KHRXWSXWVIURPWKH;.KDQQHODQG<.KDQQHOPXOWLSOLHUVIHHGWKHILUVWVWDJHRIWKH;
.KDQQHODQG<.KDQQHORXWSXWILOWHUVLPSOHPHQWHGDV)LQLWH,PSXOVH5HVSRQVH),5
VWDJHVZLWKVHOH.WDEOHRUG%R.WDYHUROORII7KHILOWHUHG;.KDQQHOVLJQDOGULYHVD
ELW'$&WKDWIRUVKRUWWLPH.RQVWDQWVHWWLQJVJHQHUDWHVWKHVLJQDODWWKH
LQVWUXPHQWV&+DQDORJRXWSXW.RQQH.WRU%RWKVLJQDOVDUH.RPELQHGE\DIDVW
PDJQLWXGHDOJRULWKPDQGDVZLW.KWKHQDOORZVHLWKHUWKHILOWHUHG<.KDQQHOVLJQDORU
WKHPDJQLWXGHVLJQDODJDLQZKHQXVLQJVKRUWWLPH.RQVWDQWVHWWLQJVWREHSDVVHGWRD
VH.RQGELW'$&WRJLYHWKHVLJQDODWWKHLQVWUXPHQWV&+DQDORJRXWSXW7KH
VLJQLIL.DQ.HRIWKHPDJQLWXGHRXWSXWLVGLV.XVVHGODWHULQVH.WLRQ
,QDGGLWLRQWKH;DQG<.KDQQHOVLJQDOVDUHIHGWRIXUWKHUORZSDVVILOWHUVEHIRUH
VXEVHTXHQWSUR.HVVLQJE\WKHLQVWUXPHQW¶VKRVWPL.URSUR.HVVRU
7KHGHPRGXODWRURXWSXWLVGLJLWDOO\V.DOHGWRSURYLGHWKHGHPRGXODWRUJDLQ.RQWURO$V
GLV.XVVHGHDUOLHULQVH.WLRQWKLVJDLQLVDGMXVWHGDVWKH$&*DLQLVDGMXVWHGWR
PDLQWDLQDJLYHQIXOOV.DOHVHQVLWLYLW\
,QGXDOUHIHUHQ.HDQGGXDOKDUPRQL.PRGHVWKHGHPRGXODWRUVJHQHUDWHWZRVHWVRI
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 31/217
&KDSWHU7(&+1,&$/'(6&5,37,21
RXWSXWVRQHIRUHD.KRIWKHWZRUHIHUHQ.HVRUKDUPRQL.VDQGLQ.OXGHVWZRVHWVIRXU
.KDQQHOVRILQLWLDORXWSXWILOWHULQJ7KHVHRXWSXWVDUHSDVVHGWRWKHKRVWSUR.HVVRUIRU
IXUWKHUSUR.HVVLQJDQGZKHQWKHWLPH.RQVWDQWLVOHVVWKDQPVWKH;DQG;RXWSXWV
DUHDOVR.RQYHUWHGE\IDVW'$&VWRDQDORJVLJQDOVWKDWDSSHDUDWWKH &+DQG&+
DQDORJRXWSXW.RQQH.WRUV
2XWSXW3UR.HVVRU2XWSXW)LOWHUV$OWKRXJKVKRZQRQWKHEOR.NGLDJUDPDVDVHSDUDWHHQWLW\WKHRXWSXWSUR.HVVRULVLQ
ID.WSDUWRIWKHLQVWUXPHQWVPDLQPL.URSUR.HVVRU,WSURYLGHVPRUHGLJLWDOILOWHULQJRI
WKH;.KDQQHODQG<.KDQQHOVLJQDOVLIWKLVLVQHHGHGLQDGGLWLRQWRWKDWDOUHDG\
SHUIRUPHGE\WKHGHPRGXODWRUV$VZLWKPRVWOR.NLQDPSOLILHUVWKHRXWSXWILOWHU
.RQILJXUDWLRQLQWKHPRGHOLV.RQWUROOHGE\WKHVORSH.RQWURO7KLVPD\VHHP
VRPHZKDWVWUDQJHDQGDIHZZRUGVRIH[SODQDWLRQPD\EHKHOSIXO
,QWUDGLWLRQDODXGLRWHUPLQRORJ\DILUVWRUGHUORZSDVVILOWHULVGHV.ULEHGDVKDYLQJD
VORSHRIG%SHUR.WDYHEH.DXVHLQWKHKLJKIUHTXHQ.\OLPLWLWVJDLQLVLQYHUVHO\
SURSRUWLRQDOWRIUHTXHQ.\G%LVDSSUR[LPDWHO\DID.WRURILQDPSOLWXGHDQGDQ
R.WDYHLVDID.WRURILQIUHTXHQ.\VLPLODUO\DVH.RQGRUGHUORZSDVVILOWHULVGHV.ULEHGDVKDYLQJDVORSHRIG%SHUR.WDYH7KHVHWHUPVKDYHEH.RPHSDUWRIWKH
D..HSWHGWHUPLQRORJ\UHODWLQJWROR.NLQDPSOLILHURXWSXWILOWHUVDQGDUHXVHGLQWKH
PRGHOWRDSSO\WRWKHHQYHORSHRIWKHIUHTXHQ.\UHVSRQVHIXQ.WLRQRIWKHGLJLWDO
ILQLWHLPSXOVHUHVSRQVH),5RXWSXWILOWHUV$..RUGLQJO\WKHIURQWSDQHO.RQWUROZKL.K
VHOH.WVWKH.RQILJXUDWLRQRIWKHRXWSXWILOWHUVLVODEHOHG6/23(DQGWKHRSWLRQVDUH
ODEHOHGG%R.WDYH
7KHG%R.WDYHILOWHUVDUHQRWVDWLVID.WRU\IRUPRVWSXUSRVHVEH.DXVHWKH\GRQRWJLYH
JRRGUHMH.WLRQRIQRQUDQGRPLQWHUIHULQJVLJQDOVZKL.K.DQ.DXVHDOLDVLQJSUREOHPVDV
DUHVXOWRIWKHVDPSOLQJSUR.HVVLQWKHPDLQ$'&+RZHYHUWKHG%R.WDYHILOWHU
ILQGVXVHZKHUHWKHOR.NLQDPSOLILHULVLQ.RUSRUDWHGLQDIHHGED.N.RQWUROORRSDQGLQ
VRPHVLWXDWLRQVZKHUHWKHIRUPRIWKHWLPHGRPDLQUHVSRQVHLV.ULWL.DO7KHXVHULV
UH.RPPHQGHGWRXVHG%R.WDYHXQOHVVWKHUHLVVRPHGHILQLWHUHDVRQIRUQRWGRLQJ
VR
1RWHWKDWDWVKRUWWLPH.RQVWDQWVHWWLQJVWKHILOWHUVORSHRSWLRQVDUHOLPLWHGWRRU
G%R.WDYH
7KHRXWSXWWLPH.RQVWDQW.DQEHYDULHGEHWZHHQVDQGNV:KHQVHWWRDYDOXH
EHWZHHQVDQGPVRUPV;DQG<RU;DQG0DJQLWXGHRXWSXWVDUHDYDLODEOHDW
WKH&+DQG&+RXWSXWV$WORQJHUWLPH.RQVWDQWVHWWLQJVDOORXWSXWVDUHYDOLGDQG
DYDLODEOHDWWKH&+DQG&+RXWSXWVDQGDVWKHLQWHUQDOGLJLWDOYDOXHVUHSRUWHGWRD
UHPRWH.RPSXWHURUVWRUHGWRWKHLQWHUQDO.XUYHEXIIHU7KHODUJHGLJLWDOGLVSOD\VDQG EDUJUDSKLQGL.DWRUVRQWKHIURQWSDQHOKDYHDQHIIH.WLYHPLQLPXPWLPH.RQVWDQWOLPLW
LPSRVHGE\WKHLUXSGDWHUDWHVZKL.KDUHPVDQGPVUHVSH.WLYHO\$VQRWHGLQ
VH.WLRQDERYHLQGXDOUHIHUHQ.HDQGGXDOKDUPRQL.PRGHVWKHDQDORJRXWSXWVDW
WLPH.RQVWDQWVVKRUWHUWKDQPVDUHOLPLWHGWR;DQG;
7KHILOWHUVDUHRIWKHILQLWHLPSXOVHUHVSRQVHW\SHZLWKWKHDYHUDJLQJWLPHRIHD.K
VH.WLRQEHLQJHTXDOWRGRXEOHWKHQRPLQDOWLPH.RQVWDQW7KHVHILOWHUVRIIHUD
VXEVWDQWLDODGYDQWDJHLQUHVSRQVHWLPH.RPSDUHGZLWKDQDORJILOWHUVRUGLJLWDOLQILQLWH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 32/217
&KDSWHU7(&+1,&$/'(6&5,37,21
LPSXOVHUHVSRQVH,,5ILOWHUV
:KHQWKHUHIHUHQ.HIUHTXHQ.\LVEHORZ+]WKHV\Q.KURQRXVILOWHURSWLRQLV
DYDLODEOH7KLVPHDQVWKDWWKHD.WXDOWLPH.RQVWDQWRIWKHILOWHULVQRWJHQHUDOO\WKH
VHOH.WHGYDOXH7EXWDYDOXHZKL.KLVHTXDOWRDQLQWHJHUQXPEHURIUHIHUHQ.H.\.OHV
,I7LVJUHDWHUWKDQUHIHUHQ.H.\.OHWKHQWKHWLPH.RQVWDQWLVEHWZHHQ7DQG7
:KHUHUDQGRPQRLVHLVUHODWLYHO\VPDOOV\Q.KURQRXVILOWHURSHUDWLRQJLYHVDPDMRU
DGYDQWDJHLQORZIUHTXHQ.\PHDVXUHPHQWVE\HQDEOLQJWKHV\VWHPWRJLYHD.RQVWDQW
RXWSXWHYHQZKHQWKHRXWSXWWLPH.RQVWDQWLVHTXDOWRRQO\UHIHUHQ.H.\.OH
2XWSXW3UR.HVVRU2XWSXW2IIVHWDQG([SDQG
)ROORZLQJWKHRXWSXWILOWHUDQRXWSXWRIIVHWID.LOLW\HQDEOHVIXOOV.DOHRIIVHWWR
EHDSSOLHGWRWKH;<RUERWKGLVSOD\VDQGWRWKHDQDORJRXWSXWV
7KHRXWSXWH[SDQGID.LOLW\DOORZVDîH[SDQVLRQSHUIRUPHGE\VLPSOHLQWHUQDO
GLJLWDOPXOWLSOL.DWLRQWREHDSSOLHGWRWKH;<ERWKRUQHLWKHURXWSXWVDQGKHQ.HWR
WKHEDUJUDSKGLVSOD\VDQGWKH&+DQG&+DQDORJRXWSXWVLIWKHVHDUHVHWWRRXWSXW;RU<YDOXHV
2XWSXW3UR.HVVRU9H.WRU0DJQLWXGHDQG3KDVH
7KHSUR.HVVRUDOVRLPSOHPHQWVWKHPDJQLWXGHDQGVLJQDOSKDVH.DO.XODWLRQZKL.KLV
XVHIXOLQPDQ\VLWXDWLRQV,IWKHLQSXWVLJQDO9 VW LVDUHIHUHQ.HIUHTXHQ.\VLQXVRLGRI
.RQVWDQWDPSOLWXGHDQGWKHRXWSXWILOWHUVDUHVHWWRDVXIIL.LHQWO\ORQJWLPH.RQVWDQW
WKHGHPRGXODWRURXWSXWVDUH.RQVWDQWOHYHOV9 [DQG9 \7KHIXQ.WLRQ9 [9 \
LV
GHSHQGHQWRQO\RQWKHDPSOLWXGHRIWKHUHTXLUHGVLJQDO9 VW LHLWLVQRWGHSHQGHQWRQ
WKHSKDVHRI9 VW ZLWKUHVSH.WWRWKHUHIHUHQ.HLQSXWDQGLV.RPSXWHGE\WKHRXWSXW
SUR.HVVRULQWKHOR.NLQDPSOLILHUDQGPDGHDYDLODEOHDVWKHPDJQLWXGHRXWSXW7KH SKDVHDQJOHEHWZHHQ9 VW DQGWKH;GHPRGXODWLRQIXQ.WLRQLV.DOOHGWKHVLJQDOSKDVH
WKLVLVHTXDOWRWKHDQJOHRIWKH.RPSOH[TXDQWLW\9 [ M9 \ZKHUH MLVWKHVTXDUHURRW
RIDQGLVDOVR.RPSXWHGE\WKHSUR.HVVRUE\PHDQVRIDIDVWDU.WDQDOJRULWKP
7KHPDJQLWXGHDQGVLJQDOSKDVHRXWSXWVDUHXVHGLQ.DVHVZKHUHSKDVHLVWREH
PHDVXUHGRUDOWHUQDWLYHO\ZKHUHWKHPDJQLWXGHLVWREHPHDVXUHGXQGHU.RQGLWLRQVRI
XQ.HUWDLQRUYDU\LQJSKDVH
2QH.DVHRIYDU\LQJSKDVHLVWKDWLQZKL.KWKHUHIHUHQ.HLQSXWLVQRWGHULYHGIURPWKH
VDPHVRXU.HDVWKDWZKL.KJHQHUDWHVWKHVLJQDODQGLVWKHUHIRUHQRWDWH[D.WO\WKHVDPH
IUHTXHQ.\,QWKLV.DVHLIWKHLQSXWVLJQDOLVDVLQXVRLGRI.RQVWDQWDPSOLWXGHWKH;
.KDQQHODQG<.KDQQHOGHPRGXODWRURXWSXWVVKRZVORZVLQXVRLGDOYDULDWLRQVDWWKHGLIIHUHQ.HIUHTXHQ.\DQGWKHPDJQLWXGHRXWSXWUHPDLQVVWHDG\
+RZHYHUWKHPDJQLWXGHRXWSXWKDVGLVDGYDQWDJHVZKHUHVLJQLIL.DQWQRLVHLVSUHVHQWDW
WKHRXWSXWVRIWKHGHPRGXODWRU:KHQWKHUHTXLUHGVLJQDORXWSXWVLHWKHPHDQYDOXHV
RIWKHGHPRGXODWRURXWSXWVDUHOHVVWKDQWKHQRLVHWKHRXWSXWVWDNHERWKSRVLWLYHDQG
QHJDWLYHYDOXHVEXWWKHPDJQLWXGHDOJRULWKPJLYHVRQO\SRVLWLYHYDOXHVWKLVHIIH.W
VRPHWLPHV.DOOHGQRLVHUH.WLIL.DWLRQJLYHVULVHWRD]HURHUURUZKL.KLQWKH.DVHRID
*DXVVLDQSUR.HVVKDVDPHDQYDOXHHTXDOWRWLPHVWKH.RPELQHGURRWPHDQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 33/217
&KDSWHU7(&+1,&$/'(6&5,37,21
VTXDUHUPVYDOXHRIWKH;DQG<GHPRGXODWRUQRLVH1RWHWKDWXQOLNHRWKHUIRUPVRI
]HURHUURUWKLVLVQRWD.RQVWDQWTXDQWLW\ZKL.K.DQEHVXEWUD.WHGIURPDOOUHDGLQJV
EH.DXVHZKHQWKHVTXDUHURRWRIWKHVXPRIWKHVTXDUHVRIWKHUHTXLUHGRXWSXWV
EH.RPHVJUHDWHUWKDQWKHWRWDOUPVQRLVHWKHHUURUGXHWRWKLVPH.KDQLVPGLVDSSHDUV
$VH.RQGW\SHRIVLJQDOGHSHQGHQWHUURULQWKHPHDQRIWKHPDJQLWXGHRXWSXWR..XUVDV
DUHVXOWRIWKHLQKHUHQWQRQOLQHDULW\RIWKHPDJQLWXGHIRUPXODWKLVHUURULVDOZD\V SRVLWLYHDQGLWVYDOXHH[SUHVVHGDVDIUD.WLRQRIWKHVLJQDOOHYHOLVKDOIWKHUDWLRRIWKH
PHDQVTXDUHYDOXHRIWKHQRLVHWRWKHVTXDUHRIWKHVLJQDO
7KHVH.RQVLGHUDWLRQVOHDGWRWKH.RQ.OXVLRQWKDWZKHQWKHPDJQLWXGHRXWSXWLVEHLQJ
XVHGWKHWLPH.RQVWDQWVRIWKHGHPRGXODWRUVKRXOGEHVHWWRJLYHWKHUHTXLUHGVLJQDO
WRQRLVHUDWLRDWWKH;.KDQQHODQG<.KDQQHOGHPRGXODWRURXWSXWVLPSURYLQJWKH
VLJQDOWRQRLVHUDWLRE\DYHUDJLQJWKHPDJQLWXGHRXWSXWLWVHOILVQRWWREH
UH.RPPHQGHG
)RUDQDORJRXVUHDVRQVWKHPDJQLWXGHIXQ.WLRQDOVRVKRZVVLJQDOGHSHQGHQWHUURUV
ZKHQ]HURRIIVHWVDUHSUHVHQWLQWKHGHPRGXODWRU)RUWKLVUHDVRQLWLVHVVHQWLDOWR
UHGX.H]HURRIIVHWVWRDQLQVLJQLIL.DQWOHYHOXVXDOO\E\WKHXVHRIWKH$XWR2IIVHW
IXQ.WLRQZKHQWKHPDJQLWXGHRXWSXWLVWREHXVHG
1RWHWKDWWKHPDMRULW\RIVLJQDOUH.RYHU\DSSOL.DWLRQVDUHV.DODUPHDVXUHPHQWVZKHUH
WKHSKDVHEHWZHHQWKHUHTXLUHGVLJQDODQGWKHUHIHUHQ.HYROWDJHLV.RQVWDQWDSDUWIURP
SRVVLEOHSKDVHUHYHUVDOV.RUUHVSRQGLQJWR.KDQJHVLQWKHVLJQRIWKHTXDQWLW\EHLQJ
PHDVXUHG,QWKLVVLWXDWLRQWKHOR.NLQDPSOLILHULVXVHGLQWKHQRUPDO;<PRGHZLWK
WKHSKDVHVKLIWHUDGMXVWHGWRPD[LPL]HWKH;RXWSXWDQGWREULQJWKHPHDQ<RXWSXWWR
]HUR5HIHUWRVH.WLRQIRUIXUWKHULQIRUPDWLRQRQWKH.RUUH.WXVHRIWKH$XWR
3KDVHIXQ.WLRQIRUWKLVSXUSRVH
2XWSXW3UR.HVVRU1RLVH0HDVXUHPHQWV7KHQRLVHPHDVXUHPHQWID.LOLW\XVHVWKHRXWSXWSUR.HVVRUWRSHUIRUPDQRLVH
.RPSXWDWLRQRQWKH;RXWSXWRIWKHGHPRGXODWRU$QRLVHEXIIHU.RQWLQXRXVO\
.DO.XODWHVWKHPHDQOHYHORI;UHSUHVHQWLQJWKHPHDVXUHGRXWSXWVLJQDOE\VXPPLQJ
WKHODVWQVDPSOHVRIWKH;RXWSXWDQGGLYLGLQJE\Q7KHSUR.HVVRUWKHQ.DO.XODWHVWKH
PRGXOXVRIWKHGLIIHUHQ.HEHWZHHQHD.K;RXWSXWYDOXHDQGWKHPHDQYDOXHDQGXVHV
WKLVILJXUHWRGHULYHWKHQRLVH7KHGLVSOD\HGQRLVHYDOXHLV.RUUH.WIRULQSXWQRLVH
ZKHUHWKHDPSOLWXGHGLVWULEXWLRQRIWKHZDYHIRUPLV*DXVVLDQZKL.KLVQRUPDOO\WKH
.DVH7KHLQGL.DWHGYDOXHLQ9+]RU$+]LVWKHVTXDUHURRWRIWKHPHDQVSH.WUDO
GHQVLW\RYHUWKHHTXLYDOHQWQRLVHEDQGZLGWKGHILQHGE\WKHVHWWLQJRIWKHRXWSXWILOWHU
WLPH.RQVWDQWDQGVORSH
:KHQXVHGIRUQRLVHPHDVXUHPHQWVWKHDYDLODEOHUDQJHRIRXWSXWWLPH.RQVWDQWVLV
UHVWUL.WHGWRVWRPVLQ.OXVLYHDQGWKHVORSHWRRUG%R.WDYH7KH
.RUUHVSRQGLQJD.WXDOEDQGZLGWKIRUWKHSUHVHQWWLPH.RQVWDQWDQGVORSHVHWWLQJV.DQEH
IRXQGIURPWKHWDEOHEHORZRUE\XVLQJWKH(1%:.RPPDQG,QDGGLWLRQWKH
6\Q.KURQRXV7LPH&RQVWDQW.RQWUROLVWXUQHGRII
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 34/217
&KDSWHU7(&+1,&$/'(6&5,37,21
7LPH (TXLYDOHQW1RLVH%DQGZLGWKDW2XWSXW)LOWHU6ORSH+]
&RQVWDQW G%R.WDYH G%R.WDYH
V
PV
PV
PV
PV PV
7DEOH(1%:YV7LPH&RQVWDQWDQG6ORSH
7KHQRLVHEXIIHUOHQJWKQ.DQEHVHWWRRU6LQ.HQHZLQSXW
YDOXHVWRWKHEXIIHUDUHVXSSOLHGDWDN+]UDWHWKHVH.RUUHVSRQGWRDYHUDJLQJWLPHV
RI]HURVH.RQGVH.RQGVVH.RQGVDQGVH.RQGVUHVSH.WLYHO\DQGVRWKH.RQWURO
RQWKH&RQILJXUDWLRQ0HQXWKDWDGMXVWVWKLVEXIIHUOHQJWKLVODEHOHG1RLVH%XIIHU
/HQJWKDQG.DQEHVHWWR2IIVVVRUV6HWWLQJDVKRUWHUWLPHPHDQVWKDWWKH
V\VWHPUHVSRQGVPRUHTXL.NO\WR.KDQJHVLQWKHPHDQ;RXWSXWOHYHOEXWWKHQRLVH
UHDGLQJLWVHOIH[KLELWVPRUHIOX.WXDWLRQ&RQYHUVHO\WKHIOX.WXDWLRQ.DQEHUHGX.HGE\
VHWWLQJDORQJHUWLPHEXWDWWKHH[SHQVHRILQ.UHDVHGVHWWOLQJWLPHIROORZLQJ.KDQJHVLQWKHPHDQ;RXWSXWOHYHO
,IDQRLVHRXWSXW1.DOLEUDWHGLQYROWVRUDPSVSHUURRWKHUW]RUDVDSHU.HQWDJHRI
IXOOV.DOHLVVHOH.WHGDVRQHRIWKHRXWSXWVRQWKH0DLQ'LVSOD\RUIRU.RQYHUVLRQWRDQ
DQDORJVLJQDOIRURXWSXWWRWKH&+&+RXWSXWVDQGWKHWLPH.RQVWDQWLVQRWZLWKLQ
WKHSHUPLWWHGUDQJHWKHQDZDUQLQJPHVVDJHLVGLVSOD\HGRQWKHV.UHHQ6LPLODUO\LID
QRLVHRXWSXWYDOXHLVUHDGYLDWKH.RPSXWHULQWHUID.HVZKLOHWKHWLPH.RQVWDQWRUVORSH
DUHRXWVLGHWKHSHUPLWWHGUDQJHRULIWKHV\Q.KURQRXVWLPH.RQVWDQW.RQWUROLVHQDEOHG
WKHQWKHUHVSRQVHZLOOEH6LQ.HQRLVHUHDGLQJV.DQRQO\EH]HURRUSRVLWLYHWKLV
QHJDWLYHQXPEHU.OHDUO\LQGL.DWHVWKDWWKHUHDGLQJLVLQYDOLGDQGVKRXOGEHLJQRUHG
,QRUGHUWRPDNHQRLVHPHDVXUHPHQWVHDVLHUWKHLQVWUXPHQWLQ.OXGHVD1RLVH0HDVXUHPHQW0RGHD.WLYDWHGE\D.RQWURORQWKH&RQILJXUDWLRQPHQXRUE\D
.RPSXWHU.RPPDQG:KHQWKLVLVWXUQHGRQWKH0DLQ'LVSOD\RXWSXWVDUHVHWWRWKH
IRXUW\SHVPRVW.RPPRQO\UHTXLUHGDQGWKHILOWHUWLPH.RQVWDQWVORSHDQG
V\Q.KURQRXVWLPH.RQVWDQWVHWWLQJDUHIRU.HGWRYDOXHVZLWKLQWKHSHUPLWWHGUDQJHV
:KHQWXUQHGRIIWKHVHUHVWUL.WLRQVDUHUHPRYHG
:KHQPDNLQJQRLVHPHDVXUHPHQWVWKHXVHULVVWURQJO\DGYLVHGWRXVHDQRV.LOORV.RSH
WRPRQLWRUWKHVLJQDODWWKH6,*021RXWSXWRQWKHUHDUSDQHODVWKLVLVWKHEHVWZD\
RIHQVXULQJWKDWDUDQGRPSUR.HVVLVEHLQJPHDVXUHGUDWKHUWKDQOLQHSL.NXSRURWKHU
QRQUDQGRPVLJQDOV
$Q\WZRRIWKHRXWSXWVLQ.OXGLQJ;.KDQQHODQG<.KDQQHOVLJQDOVYH.WRUPDJQLWXGH
DQGSKDVHDQJOHDQGHYHQQRLVHPD\EHUHSUHVHQWHGLQDQDORJIRUPE\EHLQJURXWHGYLD
WZRIXUWKHUELW'$&VWRWKHXQLWV &+DQG&+RXWSXW.RQQH.WRUV
$X[LOLDU\$QDORJ,QSXWVDQG2XWSXWV$'&VDQG'$&V
7KHPRGHOLQ.RUSRUDWHVIRXUDX[LOLDU\$'&LQSXWVRI.RQYHQWLRQDOVDPSOHG
GHVLJQRIIHULQJDUHVROXWLRQRIP9LQ97KHVH.RQYHUWHUVPD\EHXVHGDW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 35/217
&KDSWHU7(&+1,&$/'(6&5,37,21
VORZVDPSOHUDWHVIRUGLJLWL]LQJVORZO\.KDQJLQJRU'&VLJQDOVZKL.KDUHDVVR.LDWHG
ZLWKDQH[SHULPHQWVX.KDVWKRVHJHQHUDWHGE\WHPSHUDWXUHDQGSUHVVXUHWUDQVGX.HUV
VRWKDWWKH\.DQEHLQ.RUSRUDWHGLQWRUDWLR.DO.XODWLRQVRUWUDQVIHUUHGWRD.RQWUROOLQJ
.RPSXWHU7KH\PD\DOVREHXVHGLQ.RQMXQ.WLRQZLWKWKHLQVWUXPHQWV.XUYHEXIIHUWR
IRUPDWUDQVLHQWUH.RUGHURSHUDWLQJDWVDPSOHUDWHVRIXSWRN+]
7ZRDX[LOLDU\'$&RXWSXWVDUHDOVRSURYLGHGZKL.KRIIHUWKHVDPHUHVROXWLRQDVWKH$'&VQDPHO\P9LQ9
0DLQ0L.URSUR.HVVRU6SH.WUDO'LVSOD\
,QVRPH.DVHVLW.DQEHXVHIXOWRGHWHUPLQHWKHVSH.WUDOSRZHUGLVWULEXWLRQRIWKHLQSXW
VLJQDO7KHPRGHO.DQGRWKLVVLQ.HZKHQWKH6SH.WUDO'LVSOD\PHQXLVVHOH.WHG
WKHRXWSXWSUR.HVVRUSHUIRUPVDGLV.UHWH)RXULHUWUDQVIRUPRQWKHGLJLWL]HGLQSXWVLJQDO
DQGGLVSOD\VWKHUHVXOWLQJVSH.WUXP
0DLQ0L.URSUR.HVVRU8VHU6HWWLQJV
7KHQRQYRODWLOHPHPRU\DVVR.LDWHGZLWKWKHPDLQPL.URSUR.HVVRULVXVHGWRVWRUHXSWRHLJKW.RPSOHWHLQVWUXPHQWVHWWLQJVZKL.KPD\EHUH.DOOHGRU.KDQJHGDVUHTXLUHG
7KLVPDNHVLWPX.KHDVLHUIRUDQLQVWUXPHQWWREHTXL.NO\.RQILJXUHGIRUGLIIHUHQW
H[SHULPHQWV
0DLQ0L.URSUR.HVVRU*HQHUDO
$OOIXQ.WLRQVRIWKHLQVWUXPHQWDUHXQGHUWKH.RQWURORIDPL.URSUR.HVVRUZKL.KLQ
DGGLWLRQGULYHVWKHIURQWSDQHOGLVSOD\SUR.HVVHVIURQWSDQHONH\RSHUDWLRQVDQG
VXSSRUWVWKH56DQG*3,%,(((.RPSXWHULQWHUID.HV7KLVSUR.HVVRUDOVR
GULYHVWKHLQVWUXPHQWVELWGLJLWDO77/SURJUDPPDEOHLQSXWRXWSXWSRUWZKL.KPD\
EHXVHGIRU.RQWUROOLQJDX[LOLDU\DSSDUDWXVRUUHDGLQJWKHVWDWXVRIH[WHUQDOORJL.OLQHV
7KHPL.URSUR.HVVRUKDVD..HVVWRDSRLQWPHPRU\ZKL.K.DQEHXVHGIRU
VWRUDJHRIVHOH.WHGLQVWUXPHQWRXWSXWVDV.XUYHVSULRUWRWKHLUWUDQVIHUWRD.RPSXWHU
YLDWKH.RPSXWHULQWHUID.HV,QDGGLWLRQWRXVLQJWKLVIXQ.WLRQIRUWKHQRUPDORXWSXWV
VX.KDVWKH;.KDQQHODQG<.KDQQHORXWSXWVLJQDOVLWPD\DOVREHXVHGZLWKWZRRI
WKHDX[LOLDU\$'&LQSXWVWRDOORZWKHLQVWUXPHQWWRRSHUDWHDVDWUDQVLHQWUH.RUGHU
7KHLQWHUQDORV.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSIXQ.WLRQVDUHDOVR.RQWUROOHGE\
WKHPL.URSUR.HVVRU
$SDUWL.XODUO\XVHIXOIHDWXUHRIWKHGHVLJQLVWKDWRQO\SDUWRIWKH.RQWUROOLQJILUPZDUH
SURJUDP.RGHZKL.KWKHPL.URSUR.HVVRUUXQVLVSHUPDQHQWO\UHVLGHQWLQWKH
LQVWUXPHQW7KHUHPDLQGHULVKHOGLQDIODVK((3520DQG.DQEHXSGDWHGYLDWKH
56.RPSXWHULQWHUID.H,WLVWKHUHIRUHSRVVLEOHWR.KDQJHWKHIXQ.WLRQDOLW\RIWKH
LQVWUXPHQWSHUKDSVWRLQ.OXGHDQHZIHDWXUHRUXSGDWHWKH.RPSXWHU.RPPDQGVHW
VLPSO\E\.RQQH.WLQJLWWRD.RPSXWHUDQGUXQQLQJDQXSGDWHSURJUDP
0DLQ0L.URSUR.HVVRU$XWR)XQ.WLRQV
7KHPL.URSUR.HVVRUDOVR.RQWUROVWKHLQVWUXPHQWVDXWRIXQ.WLRQVZKL.KDUH.RQWURO
RSHUDWLRQVH[H.XWHGE\PHDQVRIDVLQJOH.RPPDQGRUWZRNH\SUHVVHV7KHVH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 36/217
&KDSWHU7(&+1,&$/'(6&5,37,21
IXQ.WLRQVDOORZHDVLHUIDVWHURSHUDWLRQLQPRVWDSSOL.DWLRQVDOWKRXJKGLUH.WPDQXDO
RSHUDWLRQRUVSH.LDOSXUSRVH.RQWUROSURJUDPVPD\JLYHEHWWHUUHVXOWVLQ.HUWDLQ
.LU.XPVWDQ.HV'XULQJDSSOL.DWLRQRIVHYHUDORIWKHDXWRIXQ.WLRQVGH.LVLRQVDUHPDGH
RQWKHEDVLVRIRXWSXWUHDGLQJVPDGHDWDSDUWL.XODUPRPHQW:KHUHWKLVLVWKH.DVHLW
LVLPSRUWDQWIRUWKHRXWSXWWLPH.RQVWDQWVHWE\WKHXVHUWREHORQJHQRXJKWRUHGX.H
WKHRXWSXWQRLVHWRDVXIIL.LHQWO\ORZOHYHOVRWKDWYDOLGGH.LVLRQV.DQEHPDGHDQGWKDW
VXIIL.LHQWWLPHLVDOORZHGIRUWKHRXWSXWWRVHWWOH
7KHIROORZLQJVH.WLRQV.RQWDLQEULHIGHV.ULSWLRQVRIWKHDXWRIXQ.WLRQV
$XWR6HQVLWLYLW\
7KLVIXQ.WLRQRQO\RSHUDWHVZKHQWKHUHIHUHQ.HIUHTXHQ.\LVDERYH+]$VLQJOH
$XWR6HQVLWLYLW\RSHUDWLRQ.RQVLVWVRIGH.UHDVLQJWKHIXOOV.DOHVHQVLWLYLW\UDQJHLIWKH
PDJQLWXGHRXWSXWLVJUHDWHUWKDQRIIXOOV.DOHRULQ.UHDVLQJWKHIXOOV.DOH
VHQVLWLYLW\UDQJHLIWKHPDJQLWXGHRXWSXWLVOHVVWKDQRIIXOOV.DOH$IWHUWKH$XWR
6HQVLWLYLW\IXQ.WLRQLV.DOOHG$XWR6HQVLWLYLW\RSHUDWLRQV.RQWLQXHWREHPDGHXQWLOWKH
UHTXLUHG.ULWHULRQLVPHW
,QWKHSUHVHQ.HRIQRLVHRUDWLPHYDU\LQJLQSXWVLJQDOLWPD\EHDORQJWLPHEHIRUH
WKH$XWR6HQVLWLYLW\VHTXHQ.H.RPHVWRDQHQGDQGWKHUHVXOWLQJVHWWLQJPD\QRWEH
ZKDWLVUHDOO\UHTXLUHG
$XWR3KDVH
,QDQ$XWR3KDVHRSHUDWLRQWKHYDOXHRIWKHVLJQDOSKDVHLV.RPSXWHGDQGDQ
DSSURSULDWHSKDVHVKLIWLVWKHQLQWURGX.HGLQWRWKHUHIHUHQ.H.KDQQHOVRDVWREULQJWKH
YDOXHRIWKHVLJQDOSKDVHWR]HUR7KHLQWHQGHGUHVXOWLVWRQXOOWKHRXWSXWRIWKH<
.KDQQHOZKLOHPD[LPL]LQJWKHRXWSXWRIWKH;.KDQQHO
$Q\VPDOOUHVLGXDOSKDVH.DQQRUPDOO\EHUHPRYHGE\.DOOLQJ$XWR3KDVHIRUDVH.RQG
WLPHDIWHUDVXLWDEOHGHOD\WRDOORZWKHRXWSXWVWRVHWWOH
7KH$XWR3KDVHID.LOLW\LVQRUPDOO\XVHGZLWKD.OHDQVLJQDOZKL.KLVNQRZQWREHRI
VWDEOHSKDVH,WXVXDOO\JLYHVYHU\JRRGUHVXOWVSURYLGHGWKDWWKH;.KDQQHODQG<
.KDQQHORXWSXWVDUHVWHDG\ZKHQWKHSUR.HGXUHLV.DOOHG
,ID]HURHUURULVSUHVHQWRQWKHRXWSXWVVX.KDVPD\EH.DXVHGE\XQZDQWHG.RXSOLQJ
EHWZHHQWKHUHIHUHQ.HDQGVLJQDO.KDQQHOLQSXWVWKHQWKHIROORZLQJSUR.HGXUHVKRXOG
EHDGRSWHG
5HPRYHWKHVRXU.HRILQSXWVLJQDOZLWKRXWGLVWXUELQJDQ\RIWKH.RQQH.WLRQVWR
WKHVLJQDOLQSXWZKL.KPLJKWEHSL.NLQJXSLQWHUIHULQJVLJQDOVIURPWKHUHIHUHQ.H
.KDQQHO,QDQRSWL.DOH[SHULPHQWIRUH[DPSOHWKLV.RXOGEHGRQHE\VKLHOGLQJWKHGHWH.WRUIURPWKHVRXU.HRI.KRSSHGOLJKW
([H.XWHDQ$XWR2IIVHWRSHUDWLRQZKL.KZLOOUHGX.HWKH;.KDQQHODQG<.KDQQHO
RXWSXWVWR]HUR
5HHVWDEOLVKWKHVRXU.HRILQSXWVLJQDO7KH;.KDQQHODQG<.KDQQHORXWSXWVZLOO
QRZLQGL.DWHWKHWUXHOHYHORILQSXWVLJQDODWWKHSUHVHQWUHIHUHQ.HSKDVHVHWWLQJ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 37/217
&KDSWHU7(&+1,&$/'(6&5,37,21
([H.XWHDQ$XWR3KDVHRSHUDWLRQ7KLVZLOOVHWWKHUHIHUHQ.HSKDVHVKLIWHUWRWKH
SKDVHDQJOHRIWKHLQSXWVLJQDO+RZHYHUEH.DXVHWKHRIIVHWOHYHOVZKL.KZHUH
DSSOLHGLQVWHSZHUH.DO.XODWHGDWWKHRULJLQDOUHIHUHQ.HSKDVHVHWWLQJWKH\ZLOO
QRWQRZEH.RUUH.WDQGWKHLQVWUXPHQWZLOOLQJHQHUDOGLVSOD\DQRQ]HUR<.KDQQHO
RXWSXWYDOXH
5HPRYHWKHVRXU.HRILQSXWVLJQDODJDLQ
([H.XWHDVH.RQG$XWR2IIVHWRSHUDWLRQZKL.KZLOOUHGX.HWKH;.KDQQHODQG<
.KDQQHORXWSXWVWR]HURDWWKHQHZUHIHUHQ.HSKDVHVHWWLQJ
5HHVWDEOLVKWKHVRXU.HRILQSXWVLJQDO
7KLVWH.KQLTXHDOWKRXJKDSSDUHQWO\.RPSOH[LVWKHRQO\ZD\RIUHPRYLQJWKHHIIH.WRI
.URVVWDONZKL.KLVQRWJHQHUDOO\LQWKHVDPHSKDVHDVWKHUHTXLUHGVLJQDO
$XWR2IIVHW
,QDQ$XWR2IIVHWRSHUDWLRQWKH;RIIVHWDQG<RIIVHWIXQ.WLRQVDUHWXUQHGRQDQGDUH
DXWRPDWL.DOO\VHWWRWKHYDOXHVUHTXLUHGWRJLYH]HURYDOXHVDWERWKWKH;DQGWKH<
RXWSXWV$Q\VPDOOUHVLGXDOYDOXHV.DQQRUPDOO\EHUHPRYHGE\.DOOLQJ$XWR2IIVHW
IRUDVH.RQGWLPHDIWHUDVXLWDEOHGHOD\WRDOORZWKHRXWSXWVWRVHWWOH
7KHSULPDU\XVHRIWKH$XWR2IIVHWLVWR.DQ.HORXW]HURHUURUVZKL.KDUHXVXDOO\
.DXVHGE\XQZDQWHG.RXSOLQJRU.URVVWDONEHWZHHQWKHVLJQDO.KDQQHODQGWKHUHIHUHQ.H
.KDQQHOHLWKHULQWKHH[WHUQDO.RQQH.WLRQVRUSRVVLEO\XQGHUVRPH.RQGLWLRQVLQWKH
LQVWUXPHQWLWVHOI1RWHWKDWLID]HURHUURULVSUHVHQWWKH$XWR2IIVHWIXQ.WLRQVKRXOG
EHH[H.XWHGEHIRUHDQ\H[H.XWLRQRI$XWR3KDVH
$XWR0HDVXUH
7KLVIXQ.WLRQRQO\RSHUDWHVZKHQWKHUHIHUHQ.HIUHTXHQ.\LVJUHDWHUWKDQ+],W SHUIRUPVWKHIROORZLQJRSHUDWLRQV
7KH$&*$,1YDOXHLVDGMXVWHGWRPD[LPL]HWKHLQSXWWRWKHPDLQ$'&ZLWKRXW
.DXVLQJRYHUORDGDQGWKHWLPH.RQVWDQWLVVHWWRDQDSSURSULDWHYDOXHIRUWKHSUHVHQW
UHIHUHQ.HIUHTXHQ.\$QDXWRVHQVLWLYLW\RSHUDWLRQLVWKHQSHUIRUPHGIROORZHGE\DQ
DXWRSKDVH
7KH$XWR0HDVXUHIXQ.WLRQLVLQWHQGHGWRJLYHDTXL.NVHWWLQJRIWKHLQVWUXPHQWZKL.K
ZLOOEHDSSUR[LPDWHO\.RUUH.WLQW\SL.DOVLPSOHPHDVXUHPHQWVLWXDWLRQV)RURSWLPXP
UHVXOWVLQDQ\JLYHQVLWXDWLRQLWPD\EH.RQYHQLHQWWRVWDUWZLWK$XWR0HDVXUHDQGWR
PDNHVXEVHTXHQWPRGLIL.DWLRQVWRLQGLYLGXDO.RQWUROV
127(7KH$XWR0HDVXUHIXQ.WLRQDIIH.WVWKHVHWWLQJRIWKH$&*DLQDQG$&
*DLQ$XWRPDWL..RQWUROVGXULQJH[H.XWLRQ&RQVHTXHQWO\LWPD\QRWRSHUDWH
.RUUH.WO\LIWKH$&*DLQ$XWRPDWL..RQWUROLVWXUQHGRII,QWKLV.DVHEHWWHUUHVXOWV
ZLOOEHREWDLQHGE\SHUIRUPLQJ$XWR6HQVLWLYLW\IROORZHGE\$XWR3KDVHIXQ.WLRQV
$XWR'HIDXOW
:LWKDQLQVWUXPHQWRIWKHGHVLJQRIWKHPRGHOZKHUHWKHUHDUHPDQ\.RQWUROVRI
ZKL.KRQO\DIHZDUHUHJXODUO\DGMXVWHGLWLVYHU\HDV\WRRYHUORRNWKHVHWWLQJRIRQHRI
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 38/217
&KDSWHU7(&+1,&$/'(6&5,37,21
WKHP&RQVHTXHQWO\DQ$XWR'HIDXOWIXQ.WLRQLVSURYLGHGZKL.KVHWVDOOWKH.RQWUROV
WRDGHILQHGVWDWH7KLVLVPRVWRIWHQXVHGDVDUHV.XHRSHUDWLRQWREULQJWKHLQVWUXPHQW
LQWRDNQRZQ.RQGLWLRQZKHQLWLVJLYLQJXQH[SH.WHGUHVXOWV$OLVWLQJRIWKHVHWWLQJV
ZKL.KDUHLQYRNHGE\WKHXVHRIWKLVIXQ.WLRQ.DQEHIRXQGLQDSSHQGL[(
7KLV.RPSOHWHVWKHGHV.ULSWLRQRIWKHPDLQIXQ.WLRQDOEOR.NVRIWKHLQVWUXPHQW
*HQHUDO
$..XUD.\
:KHQWKHGHPRGXODWRULVRSHUDWLQJXQGHU.RUUH.W.RQGLWLRQVWKHDEVROXWHJDLQ
D..XUD.\RIWKHLQVWUXPHQWLVOLPLWHGE\WKHDQDORJ.RPSRQHQWVLQWKHVLJQDO.KDQQHO
DQGWKHDEVROXWHSKDVHD..XUD.\LVOLPLWHGE\WKHDQDORJ.RPSRQHQWVLQERWKWKHVLJQDO
.KDQQHODQGWKHUHIHUHQ.H.KDQQHO7KHUHVXOWLQJW\SL.DOD..XUD.\LVSHU.HQWRI
WKHIXOOV.DOHVHQVLWLYLW\DQGGHJUHHUHVSH.WLYHO\:KHQWKHKLJKHUYDOXHVRI
$&*DLQDUHLQXVHWKHHUURUVWHQGWRLQ.UHDVHDERYHN+]
3RZHUXS'HIDXOWV
$OOLQVWUXPHQWVHWWLQJVDUHUHWDLQHGZKHQWKHXQLWLVVZLW.KHGRII:KHQWKHLQVWUXPHQW
LVVZLW.KHGRQDJDLQWKHVHWWLQJVDUHUHVWRUHGEXWZLWKWKHIROORZLQJH[.HSWLRQV
D 7KH*3,%PDVNE\WHLVVHWWR]HUR
E 7KH5(027(SDUDPHWHULVVHWWR]HURIURQWSDQHO.RQWUROHQDEOHG
. 7KH.XUYHEXIIHULV.OHDUHG
G $Q\VZHHSWKDWZDVLQSURJUHVVDWVZLW.KRIILVWHUPLQDWHG
H 6\Q.KURQRXVWLPH.RQVWDQWVDUHHQDEOHG
I 7KHGLVSOD\LVWXUQHGRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 39/217
)URQWDQG5HDU3DQHOV&KDSWHU
)URQW3DQHO
)LJXUH0RGHO)URQW3DQHO/D\RXW
$VVKRZQLQILJXUHWKHPRGHOVIURQWSDQHOKDVIRXU%1&.RQQH.WRUVD
îSL[HOHOH.WUROXPLQHV.HQWV.UHHQWHQGRXEOHDQGIRXUVLQJOHNH\VSRVLWLRQHG
DGMD.HQWWRWKHV.UHHQIRXU.XUVRUPRYHPHQWNH\VDQGDEXWWRQNH\SDG7KH
IROORZLQJVH.WLRQVGHV.ULEHWKHIXQ.WLRQDQGOR.DWLRQRIWKHVHLWHPV
$DQG%,6LJQDO,QSXW&RQQH.WRUV
7KH$.RQQH.WRULVWKHVLJQDOLQSXW.RQQH.WRUIRUXVHLQVLQJOHHQGHGDQGGLIIHUHQWLDO
YROWDJHPRGH7KH%,.RQQH.WRULVWKHVLJQDOLQSXW.RQQH.WRUIRUXVHLQGLIIHUHQWLDO
YROWDJHPRGH$%DQGIRULQYHUWLQJVLQJOHHQGHGYROWDJHPRGH %PRGH,WLVDOVR
WKHVLJQDOLQSXW.RQQH.WRUZKHQWKH.XUUHQWLQSXWPRGHLVVHOH.WHG
:KHQHLWKHULQSXWLVRYHUORDGHGWKHZRUGV,138729(5/2$'LQWKHWRSOHIWKDQG
.RUQHURIWKHV.UHHQIODVK
26&287&RQQH.WRU
7KLVLVWKHRXWSXW.RQQH.WRUIRUWKHLQWHUQDORV.LOODWRUDQGKDVDQRPLQDOLPSHGDQ.HRI
:
5(),1&RQQH.WRU
7KLVLVWKHJHQHUDOSXUSRVHLQSXW.RQQH.WRUIRUH[WHUQDOUHIHUHQ.HVLJQDOV
1RWH,IWKHEHVWSRVVLEOHSKDVHD..XUD.\DWORZH[WHUQDOUHIHUHQ.HIUHTXHQ.LHVLV
UHTXLUHGWKHQD77/UHIHUHQ.HVLJQDOVKRXOGEHDSSOLHGWRWKHUHDUSDQHO5()
77/LQSXWLQVWHDG
:KHQH[WHUQDOUHIHUHQ.HPRGHLVVHOH.WHGWKHZRUG/2&('DSSHDUVLQKLJKOLJKWHG
WH[WDORQJWKHWRSHGJHRIWKHV.UHHQ8QGHUXQOR.N.RQGLWLRQVWKHZRUG/2&('
IODVKHV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 40/217
&KDSWHU)5217$1'5($53$1(/6
(OH.WUROXPLQHV.HQW6.UHHQ
7KLVV.UHHQWKHILYHSDLUVRINH\VRQHD.KVLGHRILWDQGWKHIRXUNH\VXQGHULWDUHXVHG
WRDGMXVWWKHLQVWUXPHQWV.RQWUROVDQGGLVSOD\WKHPHDVXUHGRXWSXWVE\WKHXVHRID
VHULHVRIPHQXV7KHPRGHOLVDYHU\VRSKLVWL.DWHGLQVWUXPHQWZLWKPDQ\IHDWXUHV
DQG.RQVHTXHQWO\KDGWKHWUDGLWLRQDODSSURD.KRIXVLQJRQHEXWWRQSHU.RQWUROEHHQ
DGRSWHGWKHIURQWSDQHOZRXOGKDYHEHHQYHU\ODUJH$GRSWLQJDPHQXEDVHG.RQWURODQGGLVSOD\V\VWHPZLWKWKHIXQ.WLRQRIHD.KNH\EHLQJGHSHQGHQWRQWKHGLVSOD\HG
PHQXJLYHVDPX.K.OHDQHUGHVLJQZLWK.RQWUROVWKDWQHHGWREH.KDQJHGRQO\
R..DVLRQDOO\EHLQJKLGGHQLQQRUPDOXVH
7KHWHQSDLUVRINH\VRQHLWKHUVLGHRIWKHV.UHHQKDYHWKHIROORZLQJIXQ.WLRQV
GHSHQGLQJRQWKHGLVSOD\HGPHQX
)XQ.WLRQ7RDGMXVWWKHVHWWLQJRID.RQWURO
,ID.RQWUROVX.KDVWLPH.RQVWDQWIXOOV.DOHVHQVLWLYLW\RULQSXW.RXSOLQJPRGHLV
GLVSOD\HGRQWKHV.UHHQWKHQWKHDGMD.HQW NH\SDLULVXVHGWRDGMXVWLWVVHWWLQJ
6RPH.RQWUROVVX.KDV$&*DLQDQGIXOOV.DOHVHQVLWLYLW\KDYHRQO\DOLPLWHGUDQJHRI
VHWWLQJVDQGVRWKHXVHRIWKH DQG NH\VDOORZVWKHUHTXLUHGYDOXHWREH.KRVHQZLWKRQO\DIHZNH\SUHVVHV2WKHU.RQWUROVVX.KDVWKHLQWHUQDORV.LOODWRUDPSOLWXGH
DQGIUHTXHQ.\PD\EHVHWRYHUDZLGHUDQJHRIYDOXHVDQGWRDKLJKSUH.LVLRQ,QWKHVH
.DVHVDVLJQLIL.DQWQXPEHURINH\SUHVVHVPLJKWEHQHHGHGWRVHWWKH.RQWUROWRWKH
UHTXLUHGVHWWLQJ
$GMXVWPHQWRIWKHODWWHUW\SHRI.RQWUROLVPDGHHDVLHUE\DQ\RIWKHIRXUPHWKRGV
GHV.ULEHGEHORZ
H\SDG'DWD(QWU\
3UHVVLQJWKHVLQJOHNH\EHORZWKHORZHUOHIWKDQG.RUQHURIWKHV.UHHQPDUNHG
6(7&21752/IROORZHGE\HLWKHUVLGHRIWKH NH\DGMD.HQWWRD.RQWURO
UHTXLULQJQXPHUL.DOHQWU\D.WLYDWHVWKHNH\SDG7KLVLVLQGL.DWHGE\WKH
6(7&21752/NH\.KDQJLQJWR$%257(<3$'DQGDVPDOONH\SDGL.RQ
DSSHDULQJDGMD.HQWWRWKHVHOH.WHG.RQWURODVVKRZQLQILJXUH
)LJXUH1XPHUL.DO(QWU\H\SDG
8VHWKHNH\SDGWRHQWHUWKHUHTXLUHGVHWWLQJRIWKH.RQWURO7KHQXPHUL.DONH\VDQG
GH.LPDOSRLQW VLJQ DQGHQJLQHHULQJH[SRQHQW NH\VDUHVHOIH[SODQDWRU\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 41/217
&KDSWHU)5217$1'5($53$1(/6
ZKLOHWKH .OHDUNH\.DQEHSUHVVHGDWDQ\WLPHWR.OHDUDQ\GLJLWVDOUHDG\HQWHUHG
ZKL.KDUHVKRZQLQGLPPHGWH[WQH[WWRWKH.RQWURO
2Q.HWKHUHTXLUHGYDOXHLVVHWWKHUHDUHWZR.KRL.HV
,IWKH HQWHUNH\LVSUHVVHGWKHQWKHYDOXHHQWHUHGZLOOEHD..HSWHGDVWKHQHZ
.RQWUROVHWWLQJWKHVHWWLQJZLOOEHVKRZQLQQRUPDOEULJKWWH[WDQGWKHNH\SDGL.RQZLOOEHUHPRYHG,IKRZHYHUWKH$%257(<3$'NH\LVSUHVVHGWKHQWKH.RQWURO
ZLOOEHOHIWDWLWVSUHYLRXVVHWWLQJDQGWKHNH\SDGL.RQZLOOEHUHPRYHG
7KHIROORZLQJH[DPSOHVKRXOGPDNHWKLV.OHDU
([DPSOH6HWWLQJ,QWHUQDO2V.LOODWRU)UHTXHQ.\WR+]
,IWKHLQWHUQDORV.LOODWRUIUHTXHQ.\LV+]DQGLWLVUHTXLUHGWR.KDQJHLWWR
+]WKHQSUHVVWKHIURQWSDQHO6(7&21752/NH\IROORZHGE\WKHNH\
DGMD.HQWWRWKH0DLQ'LVSOD\26&)5(48(1&<.RQWURO7KHNH\SDGL.RQZLOO
DSSHDUDQGWKHNH\SDGZLOOEHD.WLYDWHG
3UHVVWKHNH\V.RUUHVSRQGLQJWRWKHGLJLWV³´³´³´ DQG³´WRVHWWKH
RV.LOODWRUIUHTXHQ.\WR+])LQDOO\SUHVVWKH NH\WRD..HSWWKHYDOXHDQG
UHPRYHWKHNH\SDGL.RQ
$.WLYH&XUVRU;($.WLYH.XUVRU
,QVRPH.DVHVLWLVXVHIXOWREHDEOHWRTXL.NO\DGMXVWD.RQWUROLQHTXDOLQ.UHPHQWVIRU
H[DPSOHZKHQPRQLWRULQJWKHHIIH.WRI.KDQJLQJWKHRV.LOODWRUIUHTXHQ.\DERXWDJLYHQ
YDOXH7KLVLVHDVLO\GRQHLQWKHPRGHOXVLQJD.RQWUROVHWWLQJIHDWXUHNQRZQDV
$.WLYH&XUVRURSHUDWLRQ
$.XUVRU.DQEHSOD.HGXQGHUDQ\GLJLWRIDGLVSOD\HG.RQWUROZKHUHWKDW.RQWURO
UHTXLUHVQXPHUL.DOGDWDHQWU\7KHUHDIWHUWKH NH\VDGMD.HQWWRWKH.RQWUROLQ.UHPHQWRUGH.UHPHQWWKHVHWWLQJRIWKDWGLJLW
7KHSRVLWLRQLQJRIWKH.XUVRU.DQEHGRQHLQRQHRIWZRZD\V
8VLQJ&XUVRU0RYHPHQWH\V
7KH DQG .XUVRUPRYHPHQWNH\VPRYHWKHD.WLYH.XUVRUEHWZHHQDOO
GLJLWVWRZKL.KLW.DQDSSO\RQWKHUHOHYDQW.RQWUROV7KHNH\V DQG NH\VDGMXVW
WKHSRVLWLRQRIWKH.XUVRUZLWKLQD.RQWUROZKLOHWKH DQG NH\VPRYHWKH.XUVRU
EHWZHHQ.RQWUROV
7KLVPHWKRGRI.XUVRUSRVLWLRQLQJLVYHU\HDV\EXWIRU.RPSDWLELOLW\ZLWKRWKHU .$")'-*1-4 OR.NLQDPSOLILHUVSDUWL.XODUO\WKHPRGHOVDQGWKH
GRXEOHNH\SUHVVPHWKRGRI.XUVRUSRVLWLRQLQJLVDOVRLQ.OXGHG
8VLQJWKH'RXEOHH\SUHVV
6WHS 6LPXOWDQHRXVO\SUHVVERWKVLGHVRIWKH NH\DGMD.HQWWRWKH.RQWURO,Q
WKHH[DPSOHVKRZQLQILJXUHWKHLQWHUQDORV.LOODWRUIUHTXHQ.\ZLOOEH
DGMXVWHGVLQ.HWKLVLVWKH.RQWUROGLVSOD\HGDGMD.HQWWRWKHNH\V$.XUVRU
DSSHDUVXQGHURQHRIWKHGLVSOD\HGGLJLWVVHHDOVRILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 42/217
&KDSWHU)5217$1'5($53$1(/6
6WHS :LWKWKH.XUVRUYLVLEOHUHSHDWLQJVWHS.DXVHVWKH.XUVRUWRPRYHWRWKHOHIW
:KHQWKH.XUVRUUHD.KHVWKHPRVWVLJQLIL.DQWGLJLWDYDLODEOHOHIWHQGRI
.RQWUROVHWWLQJWKHQH[WNH\SUHVVUHWXUQVWKH.XUVRUWRWKHOHDVWVLJQLIL.DQW
GLJLWULJKWHQGRI.RQWUROVHWWLQJ&RQWLQXHWKLVD.WLRQXQWLOWKH.XUVRULV
XQGHUWKHUHTXLUHGGLJLW
6WHS 3UHVVWKH RU NH\WR.KDQJHWKHGLJLWWRWKHUHTXLUHGYDOXH
)LJXUH$.WLYH&XUVRU$.WLYDWLRQ
$VDQH[DPSOHRIWKLVRSHUDWLRQVXSSRVHWKDWWKHRV.LOODWRUIUHTXHQ.\LV+]
DQGLWLVUHTXLUHGWR.KDQJHLWWR+]6LPXOWDQHRXVO\SUHVVERWK DQGNH\VDGMD.HQWWRWKHRV.LOODWRUIUHTXHQ.\GLVSOD\0RYHWKH.XUVRUE\UHSHDWHGGRXEOH
NH\SUHVVHVXQWLOLWLVXQGHUWKHGLJLWWKDWLVWREH.KDQJHGLQWKLV.DVHWKH]HURWRWKH
OHIWRIWKHGH.LPDOSRLQW7KHQSUHVVWKH NH\WRLQ.UHPHQWWKHIUHTXHQ.\E\+]
7KH.XUVRUZLOOGLVDSSHDUDVVRRQDVWKHIUHTXHQ.\LVDGMXVWHGEXWLWVSRVLWLRQUHPDLQV
D.WLYHXQWLO.KDQJHGVHHILJXUH
)LJXUH$.WLYH&XUVRU2SHUDWLRQ
7KHGRXEOHNH\SUHVVD.WLRQ.DQDOVREHSHUIRUPHGZLWKRQHILQJHUE\ILUPO\SUHVVLQJ
WKH.HQWHURIWKH NH\UR.NHUZKL.KZLOOGHIRUPWRSUHVVERWKNH\V7KHD.WLYH
.XUVRU.DQEHXVHGWRVHWDQ\SDUWL.XODUGLJLW)RUH[DPSOHLI\RXRQO\ZDQWWRDGMXVW
WKHUHIHUHQ.HSKDVHLQGHJUHHVWHSVOHDYHWKH.XUVRURYHUWKHILUVWGLJLWWRWKHOHIWRI
WKHGH.LPDOSRLQWRIWKHUHIHUHQ.HSKDVHYDOXH
$XWR5HSHDW
,ID RU NH\DGMD.HQWWRD.RQWUROLVSUHVVHGDQGKHOGWKHQLWVD.WLRQLV
DXWRPDWL.DOO\UHSHDWHGVX.KWKDWWKH.RQWUROVHWWLQJLVLQ.UHPHQWHGRUGH.UHPHQWHGDWD
UDWHDSSUR[LPDWHO\WHQWLPHVIDVWHUWKDQ.DQEHD.KLHYHGE\UHSHDWHGPDQXDONH\
SUHVVHV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 43/217
&KDSWHU)5217$1'5($53$1(/6
)XQ.WLRQ7R6HOH.WD0HQXRU6XE0HQX
:KHQWKHV.UHHQDGMD.HQWWRD NH\SDLUGLVSOD\VDPHQXQDPHWKHQSUHVVLQJ
HLWKHUWKH RU NH\VHOH.WVWKDWPHQX
)XQ.WLRQ7R([H.XWHD3UH3URJUDPPHG)XQ.WLRQ
:KHQWKHV.UHHQDGMD.HQWWRD NH\SDLUGLVSOD\VDSUHSURJUDPPHGIXQ.WLRQ
VX.KDV$XWR0HDVXUHRUVWDUWIUHTXHQ.\VZHHSWKHQSUHVVLQJHLWKHUWKH RU NH\H[H.XWHVWKDWIXQ.WLRQ
+(/3H\
7KHPRGHOLQ.OXGHV.RQWH[WVHQVLWLYHRQV.UHHQKHOS,QPDQ\PHQXVSUHVVLQJ
WKH+(/3NH\IROORZHGE\DNH\DGMD.HQWWRDQ\GLVSOD\HG.RQWURORUPHQXVHOH.WLRQ
SURYLGHVLQIRUPDWLRQDERXWWKDW.RQWURORUPHQX
,ILQIRUPDWLRQLVUHTXLUHGRQRWKHUWRSL.VWKHQSUHVVLQJ+(/3WZL.HZKHQLQWKH0DLQ
'LVSOD\D..HVVHVWKHPDLQ+HOSPHQXIURPZKL.KWKHUHTXLUHGVXEMH.WPD\EH
REWDLQHGE\SUHVVLQJWKHUHOHYDQWNH\
7RH[LWWKH+HOSV.UHHQVDQGUHWXUQWRQRUPDORSHUDWLRQSUHVVWKH+(/3NH\DJDLQ
0(18H\
7KHPRGHOLV.RQWUROOHGE\DVHULHVRIRQV.UHHQPHQXV:KHQWKH0DLQ'LVSOD\
LVVKRZQWKH0(18NH\LVXVHGWRD..HVV0DLQ0HQXIURPZKL.KRWKHUPHQXVPD\
EHD..HVVHG
7KHVWUX.WXUHRIWKHPHQXVLVIXOO\GLV.XVVHGLQ.KDSWHU
6(/(&7&21752/H\7KLVNH\DOORZVWKHXVHUWRVHOH.WZKL.KIRXURXWRIWKHSRVVLEOHHOHYHQEDVL.
LQVWUXPHQW.RQWUROVLQ.OXGLQJWKRVHVX.KDVIXOOV.DOHVHQVLWLYLW\WLPH.RQVWDQWDQG
RV.LOODWRUIUHTXHQ.\DUHVKRZQRQDQG.DQWKHUHIRUHEHGLUH.WO\DGMXVWHGIURPWKH
0DLQ'LVSOD\
7KHVHOH.WLRQRSHUDWHVDVIROORZV
6WHS 3UHVVWKH6(/(&7&21752/NH\
6WHS 3UHVVHLWKHUWKH RU NH\QH[WWRWKHSRVLWLRQWRZLVKWRDOOR.DWHWRD
SDUWL.XODU.RQWURO$OWKRXJKILYH.RQWUROV.DQEHDGMXVWHGIURPWKH0DLQ
'LVSOD\RQO\WKH.RQWUROVDOOR.DWHGWRWKHORZHUIRXU.DQEHVHOH.WHGE\WKH
XVHUVLQ.HWKHWRSPRVWRQHLVDOZD\VXVHGIRUWKH$&*DLQ.RQWURO
(D.KSUHVVRIWKH RU NH\.KDQJHVWKH.RQWURODOOR.DWHGWRWKHDGMD.HQW
SRVLWLRQ5HSHDWXQWLOWKH.RQWURO\RXUHTXLUHLVVKRZQ
6WHS 3UHVVWKH6(/(&7,21&203/(7(NH\WRUHWXUQWRWKH0DLQ'LVSOD\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 44/217
&KDSWHU)5217$1'5($53$1(/6
5HDU3DQHO
)LJXUH0RGHO5HDU3DQHO/D\RXW
$VVKRZQLQILJXUHWKHOLQHSRZHUVZLW.KOLQHSRZHUYROWDJHVHOH.WRUWZR56
.RQQH.WRUVD*3,%,(((.RQQH.WRUGLJLWDO,2SRUWSUHDPSOLILHUSRZHU
.RQQH.WRUDQGWZHOYH%1&VLJQDO.RQQH.WRUVDUHPRXQWHGRQWKHUHDUSDQHORIWKH
LQVWUXPHQW%ULHIGHV.ULSWLRQVRIWKHVHDUHJLYHQLQWKHIROORZLQJWH[W
/LQH3RZHU6ZLW.K
&$87,217KHPRGHOPD\EHGDPDJHGLIWKHOLQHYROWDJHLVVHWIRU9$&
RSHUDWLRQDQGLWLVWXUQHGRQZLWK9$&DSSOLHGWRWKHSRZHULQSXW.RQQH.WRU
3OHDVHHQVXUHWKDWWKHOLQHYROWDJHVHOH.WRULVVHWWRWKH.RUUH.WOLQHYROWDJHEHIRUH
VZLW.KLQJRQ
3UHVVWKHHQGRIWKHVZLW.KPDUNHG,WRWXUQRQWKHLQVWUXPHQWVSRZHUDQGWKHRWKHU
HQGPDUNHG2WRWXUQLWRII
/LQH3RZHU,QSXW$VVHPEO\7KLVKRXVHVWKHOLQHYROWDJHVHOH.WRUDQGOLQHLQSXWIXVH7R.KH.NDQGLIQH.HVVDU\
.KDQJHWKHIXVHRUOLQHYROWDJHVHHWKHSUR.HGXUHLQVH.WLRQ
56&RQQH.WRU
7KLVSLQ'W\SH56LQWHUID.H.RQQH.WRULPSOHPHQWVSLQVDQG(DUWK
*URXQG7UDQVPLW'DWD5H.HLYH'DWD/RJL.*URXQGRIDVWDQGDUG'7(LQWHUID.H
7RPDNHD.RQQH.WLRQWRD3&.RPSDWLEOH.RPSXWHULWLVQRUPDOO\VXIIL.LHQWWRXVHD
WKUHHZLUH.DEOH.RQQH.WLQJ7UDQVPLW'DWDWR5H.HLYH'DWD5H.HLYH'DWDWR7UDQVPLW
'DWDDQG/RJL.*URXQGWR/RJL.*URXQG$SSHQGL['VKRZVWKH.RQQH.WLRQGLDJUDPV
RI.DEOHVVXLWDEOHIRU.RPSXWHUVZLWKSLQDQGSLQVHULDO.RQQH.WRUV3LQRXWVIRU WKLV.RQQH.WRUDUHJLYHQLQDSSHQGL[%
$8;56&RQQH.WRU
7KLV.RQQH.WRULVXVHGWROLQNRWKHU.RPSDWLEOH(**HTXLSPHQWWRJHWKHULQDGDLV\
.KDLQ.RQILJXUDWLRQ8SWRDQDGGLWLRQDOXQLWV.DQEH.RQQH.WHGLQWKLVZD\(D.K
XQLWPXVWEHVHWWRDXQLTXHDGGUHVVVHHVH.WLRQ3LQRXWVIRUWKLV.RQQH.WRUDUH
JLYHQLQDSSHQGL[%
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 45/217
&KDSWHU)5217$1'5($53$1(/6
*3,%&RQQH.WRU
7KH*3,%LQWHUID.H.RQQH.WRU.RQIRUPVWRWKH,(((,QVWUXPHQW%XV
6WDQGDUG7KHVWDQGDUGGHILQHVDOOYROWDJHDQG.XUUHQWOHYHOV.RQQH.WRUVSH.LIL.DWLRQV
WLPLQJDQGKDQGVKDNHUHTXLUHPHQWV
',*,7$/,2&RQQH.WRU 7KLV.RQQH.WRUSURYLGHVHLJKW77/OLQHVHD.KRIZKL.K.DQEH.RQILJXUHGDVLQSXWVRU
RXWSXWV:KHQVHWDVDQRXWSXWHD.KOLQH.DQEHVHWKLJKRUORZE\WKHXVHRIWKH
'LJLWDO3RUWPHQXRUYLDWKH.RPSXWHULQWHUID.HVDQGZKHQVHWDVDQLQSXWWKHDSSOLHG
ORJL.VWDWH.DQEHUHDG
7KHSRUWLVPRVW.RPPRQO\XVHGIRU.RQWUROOLQJDX[LOLDU\DSSDUDWXVVX.KDVODPSV
VKXWWHUVDQGKHDWHUVDQGUHDGLQJVWDWXVVLJQDOVIURPDX[LOLDU\HTXLSPHQW3LQRXWVIRU
WKLV.RQQH.WRUDUHJLYHQLQDSSHQGL[%
35($0332:(5&RQQH.WRU
7KLV.RQQH.WRUVXSSOLHV9DWXSWRP$DQG.DQEHXVHGIRUSRZHULQJRSWLRQDO
UHPRWHSUHDPSOLILHUVDYDLODEOHIURP.$")'-*1-4 3LQRXWVIRUWKLV
.RQQH.WRUDUHJLYHQLQDSSHQGL[%
5()021&RQQH.WRU
7KHVLJQDODWWKLV.RQQH.WRULVD77/.RPSDWLEOHZDYHIRUPV\Q.KURQRXVZLWKWKH
UHIHUHQ.H7KLVRXWSXWPRQLWRUV.RUUH.WUHIHUHQ.H.KDQQHORSHUDWLRQEXWLWVSRODULW\LV
QRWXQLTXHO\GHILQHGVRWKDWLWGRHVQRWQH.HVVDULO\VKRZWKH.RUUH.WSKDVHUHODWLRQVKLS
ZLWKWKH6,*021RXWSXW
5()77/&RQQH.WRU
7KLV.RQQH.WRULVSURYLGHGWRDOORZ77/.RPSDWLEOHSXOVHVWREHXVHGDVWKHUHIHUHQ.H
LQSXWLIWKHEHVWSRVVLEOHSKDVHD..XUD.\DWORZH[WHUQDOUHIHUHQ.HIUHTXHQ.LHVLV
UHTXLUHGZKHQLWXVXDOO\JLYHVEHWWHUUHVXOWVWKDQWKH5(),1.RQQH.WRURQWKHIURQW
SDQHO
'$&DQG'$&&RQQH.WRUV
7KHUHDUHWZRGLJLWDOWRDQDORJ.RQYHUWHU'$&RXWSXW.RQQH.WRUV7KHRXWSXW
YROWDJHVDWWKHVH.RQQH.WRUV.DQEHVHWHLWKHUIURPWKHIURQWSDQHORUE\WKHXVHRI
UHPRWH.RPSXWHU.RPPDQGV7KHRXWSXWUDQJHLV9DQGWKHUHVROXWLRQLV
P9
&+DQG&+&RQQH.WRUV
7KHVLJQDODWWKHVH.RQQH.WRUVLVDQDQDORJYROWDJH.RUUHVSRQGLQJWRDVHOH.WHGRXWSXW
VX.KDV;<5THW.DVVSH.LILHGLQWKH$QDORJ2XWSXWVPHQX7KHIXOOV.DOH
RXWSXWYROWDJHUDQJHLV9DOWKRXJKWKHRXWSXWVUHPDLQYDOLGWR9WR
SURYLGHXSWRuIXOOV.DOHRYHUORDG.DSDELOLW\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 46/217
&KDSWHU)5217$1'5($53$1(/6
$'&$'&$'&DQG$'&&RQQH.WRUV
7KHLQSXWYROWDJHVDWWKHVH.RQQH.WRUVPD\EHGLJLWL]HGXVLQJWKHDX[LOLDU\$'&VDQG
UHDGHLWKHUIURPWKHIURQWSDQHORUE\WKHXVHRID.RPSXWHU.RPPDQG7KHLQSXW
YROWDJHVDUHVDPSOHGDQGKHOGZKHQWKH$'&LVWULJJHUHGDQGVHYHUDOGLIIHUHQWWULJJHU
PRGHVDUHDYDLODEOH7KHVHPRGHV.DQEHVHWHLWKHUIURPWKHIURQWSDQHORUE\XVLQJD
UHPRWH.RPSXWHU.RPPDQG7KHLQSXWYROWDJHUDQJHLV9DQGWKHUHVROXWLRQLVP9
75,*&RQQH.WRU
7KLV.RQQH.WRUD..HSWVD77/.RPSDWLEOHLQSXWDQG.DQEHXVHGIRUWULJJHULQJWKH
GLJLWL]DWLRQRIWKHYROWDJHVSUHVHQWDWWKHDX[LOLDU\DQDORJWRGLJLWDO.RQYHUWHUV$'&V
RUIRUWULJJHULQJGDWDD.TXLVLWLRQWRWKHLQWHUQDO.XUYHEXIIHU7KHLQSXWRSHUDWHVRQWKH
SRVLWLYHHGJHRQO\
6,*021&RQQH.WRU
7KHVLJQDODWWKLV.RQQH.WRULVWKDWLPPHGLDWHO\SULRUWRWKHPDLQDQDORJWRGLJLWDO.RQYHUWHUDQGDIWHUWKHSUHDPSOLILHUOLQHILOWHUDQGDQWLDOLDVILOWHUV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 47/217
)URQW3DQHO2SHUDWLRQ&KDSWHU
,QWURGX.WLRQ
7KLV.KDSWHUGHV.ULEHVKRZWRRSHUDWHWKHPRGHOXVLQJWKHIURQWSDQHO.RQWUROV
DQGGLV.XVVHVLWV.DSDELOLWLHVZKHQXVHGLQWKLVZD\&KDSWHUSURYLGHVVLPLODU
LQIRUPDWLRQIRUZKHQWKHXQLWLVRSHUDWHGUHPRWHO\XVLQJRQHRIWKH.RPSXWHU
LQWHUID.HV
,WLVDVVXPHGWKDWUHDGHUVDUHDOUHDG\IDPLOLDUZLWKWKHXVHRIWKHIURQWSDQHO DQG
NH\VEXWLIQRWWKHQWKH\VKRXOGUHIHUWRWKHGHWDLOHGGHV.ULSWLRQRIWKHLURSHUDWLRQ
JLYHQLQ.KDSWHU
7KHPRGHOXVHVDIOH[LEOHPHQXEDVHG.RQWUROVWUX.WXUHZKL.KDOORZVPDQ\
LQVWUXPHQW.RQWUROVWREHDGMXVWHGIURPWKHIURQWSDQHOZLWKRQO\DIHZNH\SUHVVHV
)XUWKHUPRUHWKLVGHVLJQPDNHVLWYHU\HDV\WRLQWURGX.HQHZIHDWXUHVRULPSURYH
H[LVWLQJRQHVZLWKRXWWKHUHVWUL.WLRQVZKL.KZRXOGUHVXOWIURPDIL[HGIURQWSDQHO
OD\RXW
7KHLQVWUXPHQWPD\EHRSHUDWHGLQRQHRIIRXUPRGHVDVIROORZV
6LQJOH5HIHUHQ.H
7KLVLVWKHQRUPDORSHUDWLQJPRGHRIWKHXQLWZKHUHLWIXQ.WLRQVDVD.RQYHQWLRQDO
GXDOSKDVHOR.NLQDPSOLILHU,WLQ.OXGHVERWKLQWHUQDODQGH[WHUQDOUHIHUHQ.HPRGHVDQG
SURYLGHVGHWH.WLRQHLWKHUDWWKHUHIHUHQ.HIUHTXHQ.\RURQHKDUPRQL.RILW
9LUWXDO5HIHUHQ.H
9LUWXDOUHIHUHQ.HPRGHLVDQH[WHQVLRQRILQWHUQDOVLQJOHUHIHUHQ.HPRGHRSHUDWLRQ
ZKHUHWKH<.KDQQHORXWSXWLVXVHGWRPDNH.RQWLQXRXVDGMXVWPHQWVWRWKHLQWHUQDO
RV.LOODWRUIUHTXHQ.\DQGSKDVHWRD.KLHYHSKDVHOR.NZLWKWKHDSSOLHGVLJQDOVX.KWKDW
WKH;.KDQQHORXWSXWLVPD[LPL]HGDQGWKH<.KDQQHORXWSXWLV]HURHG9LUWXDO
UHIHUHQ.HPRGHRSHUDWLRQLVRQO\SRVVLEOHZLWKVLJQDOVDWIUHTXHQ.LHVEHWZHHQ+]
DQG0+]
'XDO5HIHUHQ.H
,QGXDOUHIHUHQ.HPRGHWKHPRGHO.DQPDNHVLPXOWDQHRXVPHDVXUHPHQWVDWWZR
GLIIHUHQWUHIHUHQ.HIUHTXHQ.LHVRIZKL.KRQHPXVWEHH[WHUQDODQGWKHRWKHUPXVWEH
GHULYHGIURPWKHLQWHUQDORV.LOODWRU,QVWDQGDUGLQVWUXPHQWVWKHPD[LPXPGHWH.WLRQ
IUHTXHQ.\IRUHLWKHUUHIHUHQ.H RUUHIHUHQ.HLVN+]EXWXQLWVILWWHGZLWKWKH
RSWLRQDOORZRSHUDWLRQWRN+]DQGWKRVHZLWKWKHRSWLRQDOORZ
RSHUDWLRQWR0+]
'XDO+DUPRQL.
'XDOKDUPRQL.PRGHDOORZVWKHVLPXOWDQHRXVPHDVXUHPHQWRIWZRGLIIHUHQWKDUPRQL.V
RIWKHLQSXWVLJQDO$VZLWKGXDOUHIHUHQ.HPRGHLQVWDQGDUGLQVWUXPHQWVWKH
PD[LPXPGHWH.WLRQIUHTXHQ.\IRUHLWKHUKDUPRQL.RUKDUPRQL.LVN+]EXWXQLWV
ILWWHGZLWKWKHRSWLRQDOORZRSHUDWLRQWRN+]DQGWKRVHZLWKWKH
RSWLRQDOORZRSHUDWLRQWR0+]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 48/217
&KDSWHU)52173$1(/23(5$7,21
7KHVH.WLRQVZKL.KIROORZGHV.ULEHWKHPHQXVDVWKH\DSSHDUZKHQWKHXQLWLVEHLQJ
XVHGLQVLQJOHUHIHUHQ.HPRGH7KHPHQXVUDQJHIURPWKH0DLQ'LVSOD\XVHGPRVWRI
WKHWLPHIRULQVWUXPHQW.RQWURODQGGLVSOD\RIGDWDWKURXJKWRWKRVHPHQXVD..HVVLQJ
.RQWUROVZKL.KW\SL.DOO\RQO\QHHG.KDQJLQJR..DVLRQDOO\
7KHPHQXVIRUWKHRWKHUWKUHHRSHUDWLQJPRGHVDUHWKHQGHV.ULEHGVLQ.HLQVRPH.DVHV
WKHVHGLIIHUIURPWKRVHXVHGLQVLQJOHUHIHUHQ.HPRGHWRD..RPPRGDWHWKHDGGLWLRQDO.RQWUROVDQGGLVSOD\VWKDWDUHQHHGHG
0HQX6WUX.WXUH
)LJXUHVKRZVWKHEDVL.VWUX.WXUHRIWKHPDLQLQVWUXPHQW.RQWUROPHQXVZKL.KLW
ZLOOEHVHHQKDVDKLHUDU.KL.DORUWUHHVWUX.WXUH
)LJXUH0DLQ0HQX6WUX.WXUH
,QWKHGLDJUDPDOWKRXJKQRWLQWKHUHVWRIWKLVPDQXDOWKHIROORZLQJV\QWD[LVXVHG
7KHPHQXVDUHVKRZQDVER[HVZLWKPHQXQDPHVLQJRWKL.W\SHID.HHJ0$,10(18
DQGDUURZVRQWKHOLQHV.RQQH.WLQJWKHPHQXVDQGWKHWH[WDGMD.HQWWRWKHPLQGL.DWHWKH
NH\VZKL.KQHHGWREHSUHVVHGWRPRYHEHWZHHQPHQXV
7KHIROORZLQJH[DPSOHVVKRXOGPDNHWKLV.OHDU
7RD..HVV0DLQ0HQXIURPWKH0DLQ'LVSOD\SUHVVWKH0HQXNH\LQWKHORZHU
ULJKWKDQG.RUQHURIWKHV.UHHQ
7RD..HVVWKH6LJQDO&KDQQHOPHQXIURPWKH0DLQ'LVSOD\SUHVVWKH0HQXNH\
IROORZHGE\WKH6LJQDO&KDQQHONH\VKRZQLQ0DLQ0HQXWRUHWXUQWR0DLQ0HQX
SUHVVWKH3UHYLRXV0HQXNH\RQWKH6LJQDO&KDQQHOPHQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 49/217
&KDSWHU)52173$1(/23(5$7,21
1RWHWKDWDOOPHQXVSURYLGHD3UHYLRXV0HQXNH\DOORZLQJWKHXVHUWRUHWXUQRQHVWHS
XSWKHPHQXWUHH,QDGGLWLRQZKHQLQDQ\PHQXSUHVVLQJWKH0DLQ'LVSOD\NH\RQ
WKHIURQWSDQHOSURYLGHVDGLUH.WUHWXUQURXWHWRWKH0DLQ'LVSOD\
6RPHPHQXVVX.KDVWKH2V.LOODWRUPHQXKDYHIXUWKHUVXEPHQXVZKL.KDUH
GLV.XVVHGODWHU7KHVHKDYHEHHQRPLWWHGIURPILJXUHIRUWKHVDNHRI.ODULW\
0HQX'HV.ULSWLRQV6LQJOH5HIHUHQ.H0RGH
0DLQ'LVSOD\
)LJXUH0DLQ'LVSOD\6LQJOH5HIHUHQ.H0RGH
7KH0DLQ'LVSOD\DOZD\VDSSHDUVRQSRZHUXSDQGLVVLPLODUWRWKDWVKRZQLQ
ILJXUHDERYH,WLVGLYLGHGLQWRWZRVH.WLRQVE\DVLQJOHYHUWL.DOOLQH)LYH
LQVWUXPHQW.RQWUROVDSSHDURQWKHOHIWKDQGVLGHRIZKL.KWKHWRSPRVWRQH$&*DLQ
LVDOZD\VGLVSOD\HGZKHUHDVWKHRWKHUIRXUDUHXVHUVSH.LILHGXVLQJWKH&RQWURO
6HOH.WLRQPHQXGLV.XVVHGODWHULQVH.WLRQ2QWKHULJKWKDQGVLGHIRXU
LQVWUXPHQWRXWSXWVDUHGLVSOD\HGLQRQHRIWKHWKUHHIROORZLQJIRUPDWV
D 7ZRODUJHQXPHUL.DQGWZREDUJUDSKV
E )RXUEDUJUDSKV
. )RXUODUJHQXPHUL.GLVSOD\V
7KHGLVSOD\PRGHLVVHOH.WHGYLDWKH.HQWHU NH\SDLURIWKHILYHNH\VWRWKHULJKW
RIWKHV.UHHQZLWKHD.KNH\SUHVV.KDQJLQJWKHPRGH,QDQ\JLYHQGLVSOD\PRGHWKH.KRL.HRIWKHRXWSXWWKDWZLOOD.WXDOO\EHVKRZQLQHD.KRIWKHIRXUSRVLWLRQVLVPDGH
XVLQJWKH.RUUHVSRQGLQJULJKWKDQG NH\V,QVLQJOHUHIHUHQ.HPRGHWKHUHDUH
WKLUWHHQSRVVLEOHRXWSXWVWR.KRRVHIURPIRUHD.KQXPHUL.GLVSOD\ZLWKQLQH.KRL.HV
IRUWKHEDUJUDSKGLVSOD\VDVOLVWHGLQWDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 50/217
&KDSWHU)52173$1(/23(5$7,21
2XWSXW 'HV.ULSWLRQ
7LWOH
1XPHUL.'LVSOD\VRQO\
5 5HVXOWDQW0DJQLWXGHRXWSXWDVDSHU.HQWDJHRIIXOOV.DOHVHQVLWLYLW\
1 1RLVHRXWSXWDVDSHU.HQWDJHRIIXOOV.DOHVHQVLWLYLW\
6 3KDVHRXWSXWLQGHJUHHV
; ;.KDQQHORXWSXWDVDSHU.HQWDJHRIIXOOV.DOHVHQVLWLYLW\< <.KDQQHORXWSXWDVDSHU.HQWDJHRIIXOOV.DOHVHQVLWLYLW\
5 5HVXOWDQW0DJQLWXGHRXWSXWLQYROWVRUDPSV
1XPHUL.DQG%DU*UDSK'LVSOD\V
; ;.KDQQHORXWSXWLQYROWVRUDPSV
< <.KDQQHORXWSXWLQYROWVRUDPSV
1 1RLVHRXWSXWLQYROWVRUDPSVSHUURRWKHUW]
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
%DU*UDSK'LVSOD\VRQO\
0$* 5HVXOWDQW0DJQLWXGHRXWSXWLQYROWVRUDPSV
3+$ 3KDVHRXWSXWLQGHJUHHV
7DEOH2XWSXW'LVSOD\&KRL.HV6LQJOH5HIHUHQ.H0RGH
7KHLQVWUXPHQWSURYLGHVDPHDQVRIVZLW.KLQJTXL.NO\EHWZHHQWKHIROORZLQJSDLUVRI
RXWSXWVVLPSO\E\SUHVVLQJVLPXOWDQHRXVO\ERWKHQGVRIWKH NH\VDGMD.HQWWR
WKHLUGHV.ULSWLRQ
;IV ÅÆ ;YROWVRUDPSV
<IV ÅÆ <YROWVRUDPSV
5IV ÅÆ 5YROWVRUDPSV
1RLVHIV ÅÆ 1RLVHYROWV+]RUDPSV+]
,QWKH.HQWHUULJKWKDQGVH.WLRQRIWKH0DLQ'LVSOD\WKH.XUUHQWUHIHUHQ.HIUHTXHQ.\DV
PHDVXUHGE\WKHUHIHUHQ.HIUHTXHQ.\PHWHULVVKRZQWRJHWKHUZLWKWKH.XUUHQWOHYHOV
RI;DQG<RXWSXWRIIVHWV
:DUQLQJ,QGL.DWRUV
$ORQJWKHWRSHGJHRIWKH0DLQ'LVSOD\DUHIRXUZDUQLQJLQGL.DWRUV,QSXW2YHUORDG
DQG2XWSXW2YHUORDGDUHQRUPDOO\VKRZQLQGLPPHGWH[WEXWLQWKHHYHQWRIDQ
RYHUORDGR..XUULQJIODVKRQDQGRII6LPLODUO\/R.NHGDSSHDUVLQEULJKWWH[WZKHQWKH
LQVWUXPHQWLVOR.NHGWRDVXLWDEOHUHIHUHQ.HDQGIODVKHVZKHQWKHUHIHUHQ.H.KDQQHOLV
XQOR.NHG5HPRWHLVQRUPDOO\VKRZQLQGLPPHGWH[WEXWDSSHDUVLQEULJKWWH[WZKHQ
WKHLQVWUXPHQWLVEHLQJRSHUDWHGYLDRQHRIWKH.RPSXWHULQWHUID.HV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 51/217
&KDSWHU)52173$1(/23(5$7,21
&RQWUROV
$&*$,17KH$&*DLQ.RQWUROLVDOZD\VGLVSOD\HGLQWKHWRSOHIWKDQG.RUQHURIWKH
0DLQ'LVSOD\,IWKHDXWRPDWL.$&*DLQ.RQWUROLVWXUQHGRIIXVLQJWKH6LJQDO
&KDQQHOPHQXVHHVH.WLRQWKHQWKLV.RQWURODOORZVWKH$&*DLQWREH
DGMXVWHGIURPG%WRG%LQRUG%VWHSVDOWKRXJKQRWDOOVHWWLQJVDUHDYDLODEOHDWDOOIXOOV.DOHVHQVLWLYLW\VHWWLQJV,IWKHDXWRPDWL..RQWUROLVWXUQHGRQWKHQWKH
.RQWURO.DQQRWEHDGMXVWHGEXWWKHSUHVHQWYDOXHRI$&*DLQLVVWLOOGLVSOD\HG,Q
HLWKHUPRGH.KDQJLQJWKHIXOOV.DOHVHQVLWLYLW\PD\UHVXOWLQD.KDQJHWRWKH$&*DLQ
7RREWDLQWKHEHVWD..XUD.\XVHWKHKLJKHVWYDOXHRI$&*DLQWKDWLVSRVVLEOHZLWKRXW
.DXVLQJVLJQDOLQSXWRYHUORDGLQGL.DWHGE\WKHZRUGV,QSXW2YHUORDGLQWKHWRSOHIW
KDQG.RUQHURIWKHV.UHHQIODVKLQJRQDQGRII7KH,QSXW/LPLWYDOXHGLVSOD\HG
LPPHGLDWHO\XQGHUWKH$&*DLQ.RQWUROLVWKHODUJHVWYDOXHRIUPVVLJQDOWKDWPD\EH
DSSOLHGZLWKRXW.DXVLQJVLJQDORYHUORDG
&RQWURO6HOH.WLRQ0HQX7KHIRXUXVHUVHOH.WDEOH.RQWUROVRQWKH0DLQ'LVSOD\PD\EH.KRVHQIURPWKRVH
DYDLODEOHE\SUHVVLQJWKH6HW&RQWURONH\7KH&RQWURO6HOH.WLRQPHQXDSSHDUVDV
VKRZQLQILJXUH
)LJXUH&RQWURO6HOH.WLRQ6HWXS0HQX
3UHVVWKH NH\VDGMD.HQWWRHD.KRIWKHIRXU.RQWUROGHV.ULSWLRQVRQWKHOHIWKDQG
VLGHXQWLOWKHUHTXLUHG.RQWUROVDUHVHOH.WHG1RWHWKDWLWLVQRWSRVVLEOHWRGLVSOD\WKHVDPH.RQWUROLQPRUHWKDQRQHSRVLWLRQVLPXOWDQHRXVO\
7KHDYDLODEOH.RQWUROVKDYHWKHIROORZLQJIXQ.WLRQV
6(16,7,9,7<:KHQVHWWRYROWDJHLQSXWPRGHXVLQJWKH6LJQDO&KDQQHOPHQXWKHLQVWUXPHQWVIXOO
V.DOHYROWDJHVHQVLWLYLW\PD\EHVHWWRDQ\YDOXHEHWZHHQQ9DQG9LQD
VHTXHQ.H
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 52/217
&KDSWHU)52173$1(/23(5$7,21
:KHQVHWWR.XUUHQWLQSXWPRGHXVLQJWKH6LJQDO&KDQQHOPHQXWKHLQVWUXPHQWVIXOO
V.DOH.XUUHQWVHQVLWLYLW\PD\EHVHWWRDQ\YDOXHEHWZHHQS$DQG$ZLGH
EDQGZLGWKPRGHI$DQG$QRUPDOPRGHRUI$DQGQ$ORZQRLVH
PRGHLQDVHTXHQ.H
7KHQXPEHUUHSRUWHGDIWHUWKHOHWWHUV'5LVWKHLQVWUXPHQWV'\QDPL.5HVHUYH
H[SUHVVHGLQGH.LEHOVDV.DO.XODWHGE\WKHIROORZLQJHTXDWLRQ
'5 6(1
$&*DLQLQG%= ×
−
ORJ
([DPSOH
,I$&*DLQG%DQG6(1P9WKHQ
ORJ'5 −
×=
'5G%
7,0(&2167$177KHWLPH.RQVWDQWRIWKHRXWSXWILOWHUVLVVHWXVLQJWKLV.RQWUROLQWKHUDQJHVWR
NVLQDVHTXHQ.H6HWWLQJVRIPVDQGEHORZUHVWUL.WWKH.KRL.HRI
LQVWUXPHQWRXWSXWVDWWKHUHDUSDQHO&+DQG&+RXWSXWVWR;<DQG0DJQLWXGH
26&)5(48(1&<7KHIUHTXHQ.\RIWKHLQVWUXPHQWVLQWHUQDORV.LOODWRUPD\EHVHWXVLQJWKLV.RQWUROWR
DQ\YDOXHEHWZHHQ+]DQG0+]ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLV
IDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
26&$03/,78'(7KLV.RQWUROPD\EHVHWWRDQ\YDOXHEHWZHHQP9DQG9UPV$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
$8;'$&DQG $8;'$&
7KHVHWZR.RQWUROVVHWWKHYROWDJHDSSHDULQJDWWKH'$&DQG'$&RXWSXW
.RQQH.WRUVRQWKHUHDUSDQHOWRDQ\YDOXHEHWZHHQ9DQG9ZLWKDUHVROXWLRQ
RIP9$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
5()+$5021,&7KLV.RQWUROVHWVWKHKDUPRQL.RIWKHDSSOLHGUHIHUHQ.HIUHTXHQ.\HLWKHULQWHUQDORU
H[WHUQDODWZKL.KWKHOR.NLQDPSOLILHUVUHIHUHQ.H.KDQQHORSHUDWHVLQWKHUDQJHVW
IXQGDPHQWDOPRGHWRQG)RUH[DPSOHLIWKH.RQWUROLVVHWWRQGDQGDUHIHUHQ.H
VLJQDORI0+]LVDSSOLHGWKHLQVWUXPHQWZLOOPHDVXUHVLJQDOVDWLWVLQSXWDWD
IUHTXHQ.\RI0+]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 53/217
&KDSWHU)52173$1(/23(5$7,21
5()3+$6(7KLV.RQWURODOORZVWKHUHIHUHQ.HSKDVHWREHDGMXVWHGRYHUWKHUDQJHWRLQ
PVWHSV$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHH
VH.WLRQ
5()3+$6(
7KLV.RQWURODOORZVWKHUHIHUHQ.HSKDVHWREHDGMXVWHGLQVWHSVRI
;2))6(7DQG<2))6(77KHVHDUHWKHPDQXDO;.KDQQHODQG<.KDQQHORXWSXWRIIVHW.RQWUROV7KHRIIVHWOHYHOV
VHWE\WKHVH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQGLQ
VWHSVDUHDGGHGWRWKH;.KDQQHORU<.KDQQHORXWSXWVZKHQWKH;.KDQQHORU<
.KDQQHORIIVHWVDUHVZLW.KHGRQXVLQJWKH2XWSXW&KDQQHOVPHQX$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQ1RWHWKDWWKH$XWR
2IIVHWIXQ.WLRQDXWRPDWL.DOO\VZLW.KHVRQERWK;DQG<.KDQQHORXWSXWRIIVHWV
2Q.HWKHUHTXLUHG.RQWUROVKDYHEHHQVHOH.WHGSUHVVWKH6HOH.WLRQ&RPSOHWHNH\RQWKH
IURQWSDQHOWRUHWXUQWRWKH0DLQ'LVSOD\
0DLQ0HQX
:KHQLQWKH0DLQ'LVSOD\SUHVVWKH0HQXNH\RQ.HWRD..HVV0DLQ0HQXZKL.KLV
VKRZQLQILJXUH
)LJXUH0DLQ0HQX
0DLQ0HQXLVXVHGWRD..HVVDOORIWKHUHPDLQLQJLQVWUXPHQW.RQWUROVYLDDVHULHVRI
VXEPHQXVZKL.KDUHVHOH.WHGVLPSO\E\SUHVVLQJWKHNH\DGMD.HQWWRWKHUHTXLUHG
PHQX7KHVHVXEPHQXVDUHGHV.ULEHGLQWKHIROORZLQJVH.WLRQV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 54/217
&KDSWHU)52173$1(/23(5$7,21
6LJQDO&KDQQHO0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH6LJQDO&KDQQHOLWHP
D..HVVHVWKH6LJQDO&KDQQHOPHQXZKL.KLVVKRZQLQILJXUHVDQG
)LJXUH6LJQDO&KDQQHO0HQX9ROWDJH,QSXW0RGH
)LJXUH6LJQDO&KDQQHO0HQX&XUUHQW,QSXW0RGH
7KH6LJQDO&KDQQHOPHQXKDVILYH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVVLJQDOLQSXW
.KDQQHO&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW
NH\VZLWKWKH.XUUHQWO\D.WLYHVHOH.WLRQEHLQJVKRZQLQUHYHUVHGWH[W
,1387&283/,1*7KHLQSXW.RXSOLQJ.DQEHVHWDVIROORZV
*1'
7KHVKHOOVRIWKH$DQG%,.RQQH.WRUVDUH.RQQH.WHGGLUH.WO\WR.KDVVLVJURXQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 55/217
&KDSWHU)52173$1(/23(5$7,21
)/7
7KHVKHOOVRIWKH$DQG%,.RQQH.WRUVDUH.RQQH.WHGWR.KDVVLVJURXQGYLDD
N :UHVLVWRU
)$677KHLQSXW.RXSOLQJPRGHLVVHWIRUIDVWUH.RYHU\IURPLQSXWRYHUORDG.RQGLWLRQV
6LJQLIL.DQWSKDVHDQGPDJQLWXGHHUURUVZLOOR..XUDWIUHTXHQ.LHVEHORZ+]
6/2:7KHLQSXW.RXSOLQJPRGHLVVHWIRUVORZUH.RYHU\IURPLQSXWRYHUORDG.RQGLWLRQV
EXWWKHUHZLOOEHVPDOOHUSKDVHDQGPDJQLWXGHHUURUVDWIUHTXHQ.LHVEHORZ+]
WKDQZKHQXVLQJWKH)DVWPRGH
,138702'(7KLV.RQWUROVHWVWKHSUHDPSOLILHULQSXW.RQILJXUDWLRQWRHLWKHUYROWDJHRU.XUUHQWPRGH
DQGDOVR.KDQJHVWKHIXQ.WLRQRIWKH,1387&211(&725.RQWURO
,1387&211(&725,QYROWDJHLQSXWPRGHDVVKRZQLQILJXUHWKLV.RQWUROKDVIRXUVHWWLQJV
$ 7KHVLJQDO.KDQQHOLQSXWLVDVLQJOHHQGHGYROWDJHLQSXWWRWKH%1&.RQQH.WRURQ
WKHIURQWSDQHOPDUNHG$
%7KHVLJQDO.KDQQHOLQSXWLVDQLQYHUWLQJVLQJOHHQGHGYROWDJHLQSXWWRWKH%1&
.RQQH.WRURQWKHIURQWSDQHOPDUNHG%,
$%,QWKLVVHWWLQJWKHVLJQDO.KDQQHOLQSXWLVDGLIIHUHQWLDOYROWDJHLQSXW.RQQH.WHGWR
WKH%1&.RQQH.WRUVRQWKHIURQWSDQHOPDUNHG$DQG%,
121(7KHLQSXWLVGLV.RQQH.WHGLQWKLVVHWWLQJ
,Q.XUUHQWLQSXWPRGHVKRZQLQILJXUHWKLV.RQWUROKDVWKUHHVHWWLQJV
:,'(:LGH%DQGZLGWK&RQYHUWHU
,QWKLVVHWWLQJWKHVLJQDO.KDQQHOLQSXWLVDVLQJOHHQGHG.XUUHQWLQSXW.RQQH.WHGWR
WKH%1&.RQQH.WRURQWKHIURQWSDQHOPDUNHG%,DQGXVHVWKHZLGHEDQGZLGWK
.XUUHQWWRYROWDJH.RQYHUWHU
12501RUPDO&RQYHUWHU
,QWKLVVHWWLQJWKHVLJQDO.KDQQHOLQSXWLVDVLQJOHHQGHG.XUUHQWLQSXW.RQQH.WHGWR
WKH%1&.RQQH.WRURQWKHIURQWSDQHOPDUNHG%,DQGXVHVWKHQRUPDO.XUUHQWWR
YROWDJH.RQYHUWHU
/212,6(/RZ1RLVH&RQYHUWHU
,QWKLVVHWWLQJWKHVLJQDO.KDQQHOLQSXWLVDVLQJOHHQGHG.XUUHQWLQSXW.RQQH.WHGWR
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 56/217
&KDSWHU)52173$1(/23(5$7,21
WKH%1&.RQQH.WRURQWKHIURQWSDQHOPDUNHG%,DQGXVHVWKHORZQRLVH.XUUHQW
WRYROWDJH.RQYHUWHU
/,1(127&+),/7(57KLV.RQWUROVHOH.WVWKHPRGHRIRSHUDWLRQRIWKHOLQHIUHTXHQ.\UHMH.WLRQILOWHUDQG
RIIHUVIRXUSRVVLEOHVHWWLQJVRXWRIWKHVHYHQGHV.ULEHGLQWKHIROORZLQJWDEOH
/HJHQG )XQ.WLRQ
2)) /LQHILOWHULQD.WLYH
(QDEOH+]QRW.KILOWHU
(QDEOH+]QRW.KILOWHU
(QDEOH+]QRW.KILOWHU
(QDEOH+]QRW.KILOWHU
(QDEOHDQG+]QRW.KILOWHUV
(QDEOHDQG+]QRW.KILOWHUV
7KHILOWHUIUHTXHQ.LHVDYDLODEOHLH+]RU+]GHSHQGRQWKHVHWWLQJRI
WKH/,1()5(48(1&<.RQWURORQWKH&RQILJXUDWLRQ0HQXVHHVH.WLRQ
$872$&*$,17KHILQDO.RQWURORQWKH6LJQDO&KDQQHOPHQXVHOH.WVZKHWKHURUQRWWKH$XWRPDWL.$&
*DLQIXQ.WLRQLVD.WLYH$VGLV.XVVHGLQVH.WLRQWKH.RUUH.WDGMXVWPHQWRIWKH
$&*DLQLQD'63OR.NLQDPSOLILHULVQH.HVVDU\WRD.KLHYHWKHEHVWUHVXOWV7KLV
.RQWURODOORZVWKHXVHUWRVHOH.WZKHWKHUWKLVDGMXVWPHQWLV.DUULHGRXWDXWRPDWL.DOO\RU
UHPDLQVXQGHUPDQXDO.RQWURO
$872$&*$,12)),QWKLVVHWWLQJWKH$&*DLQPD\EHPDQXDOO\DGMXVWHGIURPWKH0DLQ'LVSOD\
$872$&*$,121,QWKLVVHWWLQJWKH$&*DLQYDOXHLVDXWRPDWL.DOO\VHOH.WHGE\WKHLQVWUXPHQW
GHSHQGLQJRQWKHIXOOV.DOHVHQVLWLYLW\,QWKHPLGUDQJHIXOOV.DOHVHQVLWLYLW\
UDQJHVWKHUHVXOWLQJG\QDPL.UHVHUYHLVEHWZHHQDQGG%
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
5HIHUHQ.H&KDQQHO0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH5HIHUHQ.H&KDQQHO
LWHPD..HVVHVWKH5HIHUHQ.H&KDQQHOPHQXZKL.KLVVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 57/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH5HIHUHQ.H&KDQQHO0HQX
7KH5HIHUHQ.H&KDQQHOPHQXKDVILYH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVUHIHUHQ.H
.KDQQHO&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW
NH\V
5()6285&(7KLV.RQWURODOORZVVHOH.WLRQRIWKHVRXU.HRIUHIHUHQ.HVLJQDOXVHGWRGULYHWKH
UHIHUHQ.H.LU.XLWU\DQGKDVWKUHHVHWWLQJV
,177KHOR.NLQDPSOLILHUVUHIHUHQ.HLVWDNHQIURPWKHLQVWUXPHQWVLQWHUQDORV.LOODWRU
1RWHWKDWWKLVVHWWLQJJLYHVWKHEHVWSKDVHDQGJDLQPHDVXUHPHQWD..XUD.\XQGHU
DOORSHUDWLQJ.RQGLWLRQVDQGLWLVDOZD\VWREHSUHIHUUHGLISRVVLEOHWRGHVLJQWKH
H[SHULPHQWVRWKDWWKHOR.NLQDPSOLILHUD.WVDVWKHVRXU.HRIWKHUHIHUHQ.HVLJQDO
(;75,QWKLVVHWWLQJWKHUHIHUHQ.H.KDQQHOLV.RQILJXUHGWRD..HSWDVXLWDEOHH[WHUQDO
UHIHUHQ.HVRXU.HDSSOLHGWRWKHUHDUSDQHO5()7//LQSXW.RQQH.WRU
(;7),QWKLVVHWWLQJWKHUHIHUHQ.H.KDQQHOLV.RQILJXUHGWRD..HSWDVXLWDEOHH[WHUQDO
UHIHUHQ.HVRXU.HDSSOLHGWRWKHIURQWSDQHO5(),1LQSXW.RQQH.WRU
5()+$5021,&
7KLV.RQWURODOORZVVHOH.WLRQRIWKHKDUPRQL.RIWKHUHIHUHQ.HIUHTXHQ.\DWZKL.KWKHOR.NLQDPSOLILHUZLOOGHWH.W,W.DQEHVHWWRDQ\YDOXHEHWZHHQVWDQGQGEXWPRVW
.RPPRQO\LVVHWWRVW1RWHWKDWWKH)VHWWLQJ.RPPRQO\IRXQGRQRWKHUOR.NLQ
DPSOLILHUV.RUUHVSRQGVWRVHWWLQJWKLV.RQWUROWRQG$GMXVWPHQWLVIDVWHUXVLQJWKH
H\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
5()3+$6(7KLV.RQWURODOORZVWKHUHIHUHQ.HSKDVHWREHDGMXVWHGRYHUWKHUDQJHWRLQ
PVWHSV$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 58/217
&KDSWHU)52173$1(/23(5$7,21
VH.WLRQ
5()3+$6(7KLV.RQWURODOORZVWKHUHIHUHQ.HSKDVHWREHDGMXVWHGLQVWHSVRI
$8723+$6(
,QDQ$XWR3KDVHRSHUDWLRQWKHYDOXHRIWKHVLJQDOSKDVHZLWKUHVSH.WWRWKHUHIHUHQ.HLV.RPSXWHGDQGDQDSSURSULDWHSKDVHVKLIWLVWKHQLQWURGX.HGLQWRWKHUHIHUHQ.H
.KDQQHOVRDVWREULQJWKHGLIIHUHQ.HEHWZHHQWKHPWR]HUR7KHLQWHQGHGUHVXOWLVWR
QXOOWKHRXWSXWRIWKH<.KDQQHOZKLOHPD[LPL]LQJWKHRXWSXWRIWKH;.KDQQHO
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
2XWSXW)LOWHUV0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH2XWSXW)LOWHUVLWHP
D..HVVHVWKH2XWSXW)LOWHUVPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH2XWSXW)LOWHUV0HQX
7KH2XWSXW)LOWHUVPHQXKDVWKUHH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVPDLQ;DQG<
.KDQQHORXWSXWILOWHUV&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJ
WKHDGMD.HQW NH\V
7,0(&2167$17
7KLV.RQWUROZKL.KGXSOL.DWHVWKH0DLQ'LVSOD\7,0(&2167$17.RQWUROLVXVHGWR
VHWWKHWLPH.RQVWDQWRIWKHRXWSXWILOWHUV
6/23(7KHUROORIIRIWKHRXWSXWILOWHUVLVVHWXVLQJWKLV.RQWUROWRDQ\YDOXHIURPG%WR
G%R.WDYHLQG%VWHSV1RWHWKDWWKHUHDUHVRPHUHVWUL.WLRQVLQWKDWLWLVQRW
SRVVLEOHWRVHOH.WRUG%R.WDYHVHWWLQJVDW7LPH.RQVWDQWVRIPVRUVKRUWHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 59/217
&KDSWHU)52173$1(/23(5$7,21
6<1&7,0(&2167$177KLV.RQWUROKDVWZRVHWWLQJVDVIROORZV
,QWKLVVHWWLQJZKL.KLVWKHQRUPDOPRGHWLPH.RQVWDQWVDUHQRWUHODWHGWRWKH
UHIHUHQ.HIUHTXHQ.\SHULRG
,QWKLVVHWWLQJWKHD.WXDOWLPH.RQVWDQWXVHGLV.KRVHQWREHVRPHPXOWLSOHRIWKH
UHIHUHQ.HIUHTXHQ.\SHULRGJLYLQJDPX.KPRUHVWDEOHRXWSXWDWORZIUHTXHQ.LHV
WKDQZRXOGRWKHUZLVHEHWKH.DVH1RWHWKDWGHSHQGLQJRQWKHUHIHUHQ.HIUHTXHQ.\
RXWSXWWLPH.RQVWDQWVVKRUWHUWKDQPV.DQQRWEHXVHG
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
2XWSXW2IIVHW([SDQG0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH2IIVHW([SDQGLWHPD..HVVHVWKH2IIVHW([SDQGPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH2IIVHW([SDQG0HQX
7KH2IIVHW([SDQGPHQXKDVILYH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV;.KDQQHODQG
<.KDQQHORXWSXWV&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKH
DGMD.HQW NH\VZLWKWKH.XUUHQWO\D.WLYHVHOH.WLRQEHLQJKLJKOLJKWHG
;2))6(7DQG<2))6(7
7KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\;2))6(7DQG<2))6(7.RQWUROV
DOORZPDQXDODGMXVWPHQWRIWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV7KHRIIVHW
OHYHOVHWE\WKH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQGLQ
VWHSVLVDGGHGWRWKH;.KDQQHORU<.KDQQHORXWSXWZKHQWKH;.KDQQHORU<.KDQQHO
RIIVHWLVVZLW.KHGRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROV
VHHVH.WLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 60/217
&KDSWHU)52173$1(/23(5$7,21
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQZKL.KDOVRVZLW.KHVRQ
ERWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
2))6(767$7867KLV.RQWURODOORZVWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVVHWE\WKHDERYHOHYHO
.RQWUROVWREHVZLW.KHGRQWRHLWKHURUERWKRXWSXWVRUWREHVZLW.KHGRII,WWKHUHIRUH
KDVIRXUVHWWLQJVDVIROORZV
121(%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRII
;7KH;.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
<7KH<.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
;<
%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRQ
287387(;3$1'7KLV.RQWURODOORZVDîRXWSXWH[SDQVLRQWREHDSSOLHGWRWKH;<RUERWKRXWSXW
.KDQQHOVRUWREHVZLW.KHGRII
121(2XWSXWH[SDQVLRQLVWXUQHGRII
;$îRXWSXWH[SDQVLRQLVDSSOLHGWRWKH;.KDQQHORXWSXWRQO\
<$îRXWSXWH[SDQVLRQLVDSSOLHGWRWKH<.KDQQHORXWSXWRQO\
;<$îRXWSXWH[SDQVLRQLVDSSOLHGWRERWKWKH;.KDQQHODQG<.KDQQHORXWSXWV
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
2XWSXW(TXDWLRQV0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH2XWSXW(TXDWLRQVLWHPRSHQVWKH2XWSXW(TXDWLRQV0HQXVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 61/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH2XWSXW(TXDWLRQV0HQX
7KH2XWSXW(TXDWLRQVPHQXLVXVHGWRGHILQHPRUH.RPSOH[.DO.XODWLRQVRQWKH
LQVWUXPHQWRXWSXWVWKDQDUHSRVVLEOHXVLQJWKHEDVL.UDWLRDQGORJUDWLRRSWLRQV7KHUH
DUHWZRXVHUGHILQHGHTXDWLRQV(TXDWLRQDQG(TXDWLRQZKL.KWDNHWKHIROORZLQJ
IRUP
×±
'
&%$(TXDWLRQ
ZKHUHWKHRSHUDWRUPD\EHVHWWRHLWKHUDGGLWLRQRUVXEWUD.WLRQDQGWKHYDULDEOHV
$%&DQG'.DQEH.KRVHQIURPWKHIROORZLQJOLVW
9DULDEOH 5DQJH
; <
0$* WR
3+$3KDVH
$'&
$'&
& WR
& WR
)54)UHTXHQ.\ WR
=HUR
8QLW\
7KHVHOH.W NH\VDUHXVHGWRKLJKOLJKWWKHUHTXLUHGYDULDEOHDQGWKHQWKHDGMXVW
NH\VDUHXVHGWR.KDQJHLW
7KHYDOXHV&DQG&ZLWKLQHD.KHTXDWLRQDUHXVHUGHILQHGLQWHJHU.RQVWDQWVDQGDUH
DGMXVWHGXVLQJWKHWZR.RUUHVSRQGLQJ NH\V7KH\PD\DOVREHVHWXVLQJWKH
NH\SDGE\SUHVVLQJ6(7&2167$17IROORZHGE\WKHUHTXLUHGYDOXHRQWKHNH\SDG
RUE\XVLQJWKH$.WLYH&XUVRU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 62/217
&KDSWHU)52173$1(/23(5$7,21
7KH.DO.XODWLRQLVSHUIRUPHGXVLQJELWLQWHJHUVWRPDLQWDLQIXOOD..XUD.\WKURXJKWR
WKHELWUHVXOWWKDWLVGLVSOD\HGLPPHGLDWHO\EHORZWKHHTXDWLRQDQGLV.RQVWDQWO\
XSGDWHG&DUHPXVWEHWDNHQLQGHILQLQJWKHHTXDWLRQVVRDVWRPDNHWKHEHVWXVHRIWKH
DYDLODEOHRXWSXWUDQJH
,IWKHHTXDWLRQRXWSXWVDUHVHWWRDSSHDUDWWKH &+RU&+.RQQH.WRUVRQWKHUHDU
SDQHOXVLQJWKH&RQILJXUDWLRQPHQXWKHQWKHRXWSXWUDQJHVKRXOGEHDGMXVWHGWROLHLQWKHUDQJHWR9DOXHVRXWVLGHWKLVUDQJHZLOOUHVXOWLQWKHVHDQDORJ
RXWSXWVOLPLWLQJDW9DOWKRXJKWKHGLJLWDOYDOXHZLOOVWLOODSSHDU.RUUH.WO\RQ
WKHV.UHHQDQG.DQEHUHDGYLDWKH.RPSXWHULQWHUID.HV
1RWHWKDWWKHHTXDWLRQV.RQWLQXHWREH.DO.XODWHGHYHQZKHQWKH2XWSXW(TXDWLRQV
PHQXLVQRWGLVSOD\HGLIWKH\DUHVHOH.WHGIRURXWSXWWRWKH&+RU&+.RQQH.WRUV
2WKHUZLVHWKH\DUH.DO.XODWHGZKHQUHTXHVWHGE\.RPSXWHU.RPPDQG
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
2V.LOODWRU0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH2V.LOODWRULWHP
D..HVVHVWKH2V.LOODWRUPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH2V.LOODWRU0HQX
7KH2V.LOODWRUPHQXKDVWZR.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVLQWHUQDORV.LOODWRUDQG
LVDOVRXVHGIRUD..HVVLQJWZRVXEPHQXVZKL.K.RQWURORV.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSV7KHUHODWLRQVKLSRIWKHVHPHQXVWR0DLQ0HQXLVVKRZQLQILJXUH
1RWHWKDWDVZLWKWKHPDLQPHQXVWUX.WXUHVKRZQLQILJXUHLWLVSRVVLEOHWR
UHWXUQWRWKH0DLQ'LVSOD\IURPDQ\PHQXE\SUHVVLQJWKH0DLQ'LVSOD\NH\EXWWKLV
KDVEHHQRPLWWHGIURPILJXUHIRUWKHVDNHRI.ODULW\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 63/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH2V.LOODWRU0HQX6WUX.WXUH
&KDQJHVWRWKHVHWWLQJRIWKH.RQWUROVRQWKH2V.LOODWRUPHQX.DQEHPDGHE\XVLQJWKH
DGMD.HQW NH\V
26&)5(48(1&<7KLV.RQWUROZKL.KGXSOL.DWHVWKH0DLQ'LVSOD\26&)5(48(1&<.RQWURODOORZVWKH
LQVWUXPHQWVLQWHUQDORV.LOODWRUIUHTXHQ.\WREHVHWWRDQ\YDOXHEHWZHHQ+]DQG
0+]ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH
&XUVRU.RQWUROVVHHVH.WLRQ
26&$03/,78'(
7KLV.RQWUROZKL.KGXSOL.DWHVWKH0DLQ'LVSOD\26&$03/,78'(.RQWUROPD\EHVHW
WRDQ\YDOXHEHWZHHQP9DQG9UPVLQP9LQ.UHPHQWV$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
7KH2V.LOODWRUPHQXLVDOVRXVHGWRD..HVVWZRVXEPHQXVDVIROORZV
)UHTXHQ.\6ZHHS0HQX
:KHQWKH2V.LOODWRUPHQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH6HWXSIUHTXHQ.\
VZHHSLWHPD..HVVHVWKH)UHTXHQ.\6ZHHSPHQXZKL.KLVVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 64/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH)UHTXHQ.\6ZHHS0HQX
7KH)UHTXHQ.\6ZHHSPHQXKDVVHYHQ.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVLQWHUQDO
RV.LOODWRU&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW
NH\V
:KHQDIUHTXHQ.\VZHHSLVUXQWKHLQWHUQDORV.LOODWRUIUHTXHQ.\VWDUWVDWWKHGHILQHG
VWDUWIUHTXHQ.\DQGLV.KDQJHGLQGLV.UHWHVWHSVXQWLOLWUHD.KHVWKHVWRSIUHTXHQ.\
6WHSVPD\EHRIHTXDOVL]HZKL.KJLYHVDOLQHDUUHODWLRQVKLSRIRXWSXWIUHTXHQ.\WR
WLPHRUPD\EHSURSRUWLRQDOWRWKHSUHVHQWIUHTXHQ.\ZKL.KJLYHVDORJDULWKPL.
UHODWLRQVKLS7KH.RQWUROVRSHUDWHDVIROORZV
26&)5(48(1&<
7KLV.RQWUROZKL.KGXSOL.DWHVWKH0DLQ'LVSOD\26&)5(48(1&<.RQWURODOORZVWKH
LQVWUXPHQWVLQWHUQDORV.LOODWRUIUHTXHQ.\WREHVHWWRDQ\YDOXHEHWZHHQ+]DQG0+]ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH
&XUVRU.RQWUROVVHHVH.WLRQ
67$57)5(48(1&<7KLV.RQWUROGHILQHVWKHVWDUWIUHTXHQ.\IRUWKHIUHTXHQ.\VZHHSZKL.KPD\EHVHWWR
DQ\YDOXHEHWZHHQ+]DQG0+]ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
6723)5(48(1&<7KLV.RQWUROGHILQHVWKHVWRSIUHTXHQ.\IRUWKHIUHTXHQ.\VZHHSZKL.KPD\EHVHWWR
DQ\YDOXHEHWZHHQ+]DQG0+]ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLVIDVWHU XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
67(36,=(7KLV.RQWUROGHILQHVWKHDPRXQWE\ZKL.KWKHRV.LOODWRUIUHTXHQ.\LV.KDQJHGDWHD.K
VWHS'HSHQGLQJRQWKHVZHHSODZVHOH.WHGOLQHDURUORJDULWKPL.LWLVVHWHLWKHULQ
KHUW]RUDVDSHU.HQWDJHRIWKHSUHVHQWIUHTXHQ.\,I6WDUW)UHTXHQ.\!6WRS
)UHTXHQ.\WKHQWKHRXWSXWIUHTXHQ.\ZLOOGH.UHDVHZLWKWLPH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 65/217
&KDSWHU)52173$1(/23(5$7,21
7,0(67(37KLV.RQWUROGHILQHVWKHWLPHWKDWWKHRV.LOODWRUIUHTXHQ.\UHPDLQVDWHD.KVWHSRIWKH
.RPSOHWHIUHTXHQ.\VZHHS9DOXHVEHWZHHQPVDQGVPD\EHVHWZLWKDPV
UHVROXWLRQ1RWHWKDWWKHWLPHSHUVWHSGHILQHGKHUHDOVRDSSOLHVWRRV.LOODWRUDPSOLWXGH
VZHHSVVHHVH.WLRQ
$50(':KHQWKLV.RQWUROLVVHWWR<(6WKHWZR.RQWUROVDERYHLW67$57DQG
67$572175,**(5DUHVKRZQLQEULJKWWH[WWRLQGL.DWHWKDWWKH\DUHD.WLYH
67$573UHVVLQJWKHDGMD.HQW NH\VWDUWVWKHIUHTXHQ.\VZHHS7KHGLVSOD\.KDQJHV
WRJLYHWZRRSWLRQV6WRSDQG3DXVH
67233UHVVLQJWKHDGMD.HQW NH\VWRSVWKHIUHTXHQ.\VZHHS
3$86(3UHVVLQJWKHDGMD.HQW NH\SDXVHVWKHIUHTXHQ.\VZHHSDWWKHSUHVHQW
IUHTXHQ.\7KHGLVSOD\.KDQJHVWR&RQWLQXH
&217,18(3UHVVLQJWKHDGMD.HQW NH\UHVWDUWVWKHSDXVHGIUHTXHQ.\VZHHSIURPWKH
SUHVHQWIUHTXHQ.\7KHGLVSOD\.KDQJHVWR3DXVH
1RWHWKDWLIWKHRV.LOODWRUDPSOLWXGHVZHHSLVDOVRDUPHGVHHVH.WLRQWKHQ
SUHVVLQJ6WDUWRQWKH)UHTXHQ.\6ZHHSPHQXZLOODOVRVWDUWWKHDPSOLWXGHVZHHS7KH
DUPHG.RQWURO.DQQRWEH.KDQJHGZKHQDVZHHSLVLQSURJUHVV
/$:7KLV.RQWUROGHILQHVWKHUHODWLRQVKLSRIRXWSXWIUHTXHQ.\WRWLPHIRUWKHIUHTXHQ.\
VZHHSDQGKDVWKUHHRSWLRQV
/2*$5,7+0,&6HOH.WVDORJDULWKPL.UHODWLRQVKLS:KHQLQWKLVPRGHWKHIUHTXHQ.\LVGHILQHGLQ
WHUPVRIDSHU.HQWDJHRIWKH.XUUHQWIUHTXHQ.\)RUH[DPSOHLIWKHVWHSVL]HZHUH
VHWWRWKHVWDUWIUHTXHQ.\WRN+]DQGWKHVWRSIUHTXHQ.\WRN+]WKHQWKH
IUHTXHQ.LHVJHQHUDWHGGXULQJWKHVZHHSZRXOGEH
+]
+]
+]+]
+]
+]
+]
+]
+]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 66/217
&KDSWHU)52173$1(/23(5$7,21
/,1($56HOH.WVDOLQHDUUHODWLRQVKLS
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH2V.LOODWRU0HQX
$PSOLWXGH6ZHHS0HQX:KHQWKH2V.LOODWRUPHQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH6HWXSDPSOLWXGH
VZHHSLWHPD..HVVHVWKH$PSOLWXGH6ZHHSPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH$PSOLWXGH6ZHHS0HQX
7KH$PSOLWXGH6ZHHSPHQXKDVVL[.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVLQWHUQDO
RV.LOODWRU&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQWNH\V
:KHQDQDPSOLWXGHVZHHSLVUXQWKHLQWHUQDORV.LOODWRURXWSXWVWDUWVDWWKHGHILQHG
VWDUWDPSOLWXGHDQGLV.KDQJHGLQGLV.UHWHVWHSVXQWLOLWUHD.KHVWKHVWRSDPSOLWXGH
6WHSVDUHDOZD\VRIHTXDOVL]HJLYLQJDOLQHDUUHODWLRQVKLSRIRXWSXWDPSOLWXGHWRWLPH
7KH.RQWUROVRSHUDWHDVIROORZV
67$57$03/,78'(7KLV.RQWUROGHILQHVWKHVWDUWDPSOLWXGHIRUWKHDPSOLWXGHVZHHSZKL.KPD\EHVHWWR
DQ\YDOXHEHWZHHQ9UPVDQG9UPVZLWKDP9UHVROXWLRQ$GMXVWPHQW
LVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
6723$03/,78'(7KLV.RQWUROGHILQHVWKHVWRSDPSOLWXGHIRUWKHDPSOLWXGHVZHHSZKL.KPD\EHVHWWR
DQ\YDOXHEHWZHHQ9UPVDQG9UPVZLWKDP9UHVROXWLRQ$GMXVWPHQW
LVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
67(3$03/,78'(7KLV.RQWUROGHILQHVWKHDPRXQWE\ZKL.KWKHRV.LOODWRUDPSOLWXGHLV.KDQJHGDWHD.K
VWHS,WPD\EHVHWWRDQ\YDOXHEHWZHHQ9UPVDQG9UPVZLWKDP9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 67/217
&KDSWHU)52173$1(/23(5$7,21
UHVROXWLRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHH
VH.WLRQ
,I6WDUW$PSOLWXGH!6WRS$PSOLWXGHWKHQWKHRV.LOODWRUDPSOLWXGHZLOOGH.UHDVHZLWK
WLPH
7,0(67(37KLV.RQWUROGHILQHVWKHWLPHWKDWWKHRV.LOODWRUDPSOLWXGHUHPDLQVDWHD.KVWHSRIWKH
.RPSOHWHDPSOLWXGHVZHHS9DOXHVEHWZHHQPVDQGVPD\EHVHWZLWKDPV
UHVROXWLRQ1RWHWKDWWKHWLPHSHUVWHSGHILQHGKHUHDOVRDSSOLHVWRRV.LOODWRUIUHTXHQ.\
VZHHSVVHHVH.WLRQ
$50(':KHQWKLV.RQWUROLVVHWWR<(6RQHRUPRUHRIWKHIROORZLQJ.RQWUROVZLOOEH
GLVSOD\HG
67$573UHVVLQJWKHDGMD.HQW NH\VWDUWVWKHDPSOLWXGHVZHHS7KHGLVSOD\.KDQJHV
WRJLYHWZRRSWLRQV6WRSDQG3DXVH
67233UHVVLQJWKHDGMD.HQW NH\VWRSVWKHDPSOLWXGHVZHHS
3$86(3UHVVLQJWKHDGMD.HQW NH\SDXVHVWKHDPSOLWXGHVZHHSDWWKHSUHVHQW
DPSOLWXGH7KHGLVSOD\.KDQJHVWR&RQWLQXH
&217,18(3UHVVLQJWKHDGMD.HQW NH\UHVWDUWVWKHSDXVHGDPSOLWXGHVZHHSIURPWKH
SUHVHQWDPSOLWXGH7KHGLVSOD\.KDQJHVWR3DXVH
1RWHWKDWLIWKHRV.LOODWRUIUHTXHQ.\VZHHSLVDOVRDUPHGVHHVH.WLRQWKHQ
SUHVVLQJ6WDUWRQWKH$PSOLWXGH6ZHHSPHQXZLOODOVRVWDUWWKHIUHTXHQ.\VZHHS7KH
DUPHG.RQWURO.DQQRWEH.KDQJHGZKHQDVZHHSLVLQSURJUHVV
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH2V.LOODWRU0HQX
$XWR)XQ.WLRQV0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH$XWR)XQ.WLRQVLWHP
D..HVVHVWKH$XWR)XQ.WLRQVPHQXZKL.KLVVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 68/217
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 69/217
&KDSWHU)52173$1(/23(5$7,21
5HPRYHWKHVRXU.HRILQSXWVLJQDOZLWKRXWGLVWXUELQJDQ\RIWKH.RQQH.WLRQVWR
WKHLQVWUXPHQWVLJQDOLQSXWZKL.KPLJKWEHSL.NLQJXSLQWHUIHULQJVLJQDOVIURPWKH
UHIHUHQ.H.KDQQHO,QDQRSWL.DOH[SHULPHQWIRUH[DPSOHWKLV.RXOGEHGRQHE\
VKLHOGLQJWKHGHWH.WRUIURPWKHVRXU.HRI.KRSSHGOLJKW
([H.XWHDQ$XWR2IIVHWRSHUDWLRQZKL.KZLOOUHGX.HWKH;.KDQQHODQG<.KDQQHO
RXWSXWVWR]HUR
5HHVWDEOLVKWKHVRXU.HRILQSXWVLJQDO7KH;.KDQQHODQG<.KDQQHORXWSXWVZLOO
QRZLQGL.DWHWKHWUXHOHYHORILQSXWVLJQDODWWKHSUHVHQWUHIHUHQ.HSKDVHVHWWLQJ
([H.XWHDQ$XWR3KDVHRSHUDWLRQ7KLVZLOOVHWWKHUHIHUHQ.HSKDVHVKLIWHUWRWKH
SKDVHDQJOHRIWKHLQSXWVLJQDO+RZHYHUEH.DXVHWKHRIIVHWOHYHOVZKL.KZHUH
DSSOLHGLQVWHSZHUH.DO.XODWHGDWWKHRULJLQDOUHIHUHQ.HSKDVHVHWWLQJWKH\ZLOO
QRWQRZEH.RUUH.WDQGWKHLQVWUXPHQWZLOOLQJHQHUDOGLVSOD\DQRQ]HUR<.KDQQHO
RXWSXWYDOXH
5HPRYHWKHVRXU.HRILQSXWVLJQDODJDLQ
([H.XWHDVH.RQG$XWR2IIVHWRSHUDWLRQZKL.KZLOOUHGX.HWKH;.KDQQHODQG<
.KDQQHORXWSXWVWR]HURDWWKHQHZUHIHUHQ.HSKDVHVHWWLQJ
5HHVWDEOLVKWKHVRXU.HRILQSXWVLJQDO
7KLVWH.KQLTXHDOWKRXJKDSSDUHQWO\.RPSOH[LVWKHRQO\ZD\RIUHPRYLQJWKHHIIH.WRI
.URVVWDONZKL.KLVQRWJHQHUDOO\LQWKHVDPHSKDVHDVWKHUHTXLUHGVLJQDO
$8720($685(7KLVIXQ.WLRQRQO\RSHUDWHVZKHQWKHUHIHUHQ.HIUHTXHQ.\LVJUHDWHUWKDQ+],W
SHUIRUPVWKHIROORZLQJRSHUDWLRQV
7KHLQVWUXPHQWLVVHWWR$&.RXSOHGDQGLQSXW)/2$7PRGH,IWKHUHIHUHQ.H
IUHTXHQ.\LVPRUHWKDQ+]WKHRXWSXWWLPH.RQVWDQWLVVHWWRPVRWKHUZLVHLWLV
VHWWRWKHORZHVWV\Q.KURQRXVYDOXHWKHILOWHUVORSHLVVHWWRG%R.WDYHRXWSXW
H[SDQGLVVZLW.KHGRIIWKHUHIHUHQ.HKDUPRQL.PRGHLVVHWWRWKH;RIIVHWDQG<
RIIVHWIXQ.WLRQVDUHVZLW.KHGRIIDQGWKH$XWR6HQVLWLYLW\DQG$XWR3KDVHIXQ.WLRQV
DUH.DOOHG7KH$XWR6HQVLWLYLW\IXQ.WLRQDOVRDGMXVWVWKH$&*DLQLIUHTXLUHG
7KH$XWR0HDVXUHIXQ.WLRQLVLQWHQGHGWRSURYLGHDPHDQVRIVHWWLQJWKHLQVWUXPHQW
TXL.NO\WR.RQGLWLRQVZKL.KZLOOEHDSSUR[LPDWHO\.RUUH.WLQW\SL.DOVLPSOH
PHDVXUHPHQWVLWXDWLRQV)RURSWLPXPUHVXOWVLQDQ\JLYHQVLWXDWLRQLWPD\EH
.RQYHQLHQWWRVWDUWZLWK$XWR0HDVXUHDQGWRPDNHVXEVHTXHQWPRGLIL.DWLRQVWRLQGLYLGXDO.RQWUROV
127(7KH$XWR0HDVXUHIXQ.WLRQDIIH.WVWKHVHWWLQJRIWKH$&*DLQDQG$&
*DLQ$XWRPDWL..RQWUROVGXULQJH[H.XWLRQ&RQVHTXHQWO\LWPD\QRWRSHUDWH
.RUUH.WO\LIWKH$&*DLQ$XWRPDWL..RQWUROLVWXUQHGRII,QWKLV.DVHEHWWHUUHVXOWV
ZLOOEHREWDLQHGE\SHUIRUPLQJ$XWR6HQVLWLYLW\IROORZHGE\$XWR3KDVHIXQ.WLRQV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 70/217
&KDSWHU)52173$1(/23(5$7,21
$8722))6(7,QDQ$XWR2IIVHWRSHUDWLRQWKH;RIIVHWDQG<RIIVHWIXQ.WLRQVDUHWXUQHGRQDQGDUH
DXWRPDWL.DOO\VHWWRWKHYDOXHVUHTXLUHGWRJLYH]HURYDOXHVDWERWKWKH;.KDQQHODQG
<.KDQQHORXWSXWV$Q\VPDOOUHVLGXDOYDOXHV.DQQRUPDOO\EHUHPRYHGE\.DOOLQJ
$XWR2IIVHWIRUDVH.RQGWLPHDIWHUDVXLWDEOHGHOD\WRDOORZWKHRXWSXWVWRVHWWOH
7KHSULPDU\XVHRIWKH$XWR2IIVHWLVWR.DQ.HORXW]HURHUURUVZKL.KDUHXVXDOO\.DXVHGE\XQZDQWHG.RXSOLQJRU.URVVWDONEHWZHHQWKHVLJQDO.KDQQHODQGWKHUHIHUHQ.H
.KDQQHOHLWKHULQWKHH[WHUQDO.RQQH.WLRQVRUSRVVLEO\XQGHUVRPH.RQGLWLRQVLQWKH
LQVWUXPHQWLWVHOI1RWHWKDWLID]HURHUURULVSUHVHQWWKH$XWR2IIVHWIXQ.WLRQVKRXOG
EHH[H.XWHGEHIRUHDQ\H[H.XWLRQRI$XWR3KDVH
$872'()$8/7:LWKDQLQVWUXPHQWRIWKHGHVLJQRIWKHPRGHOZKHUHWKHUHDUHPDQ\.RQWUROVRI
ZKL.KRQO\DIHZDUHUHJXODUO\DGMXVWHGLWLVYHU\HDV\WRRYHUORRNWKHVHWWLQJRIRQHRI
WKHP&RQVHTXHQWO\DQ$XWR'HIDXOWIXQ.WLRQLVSURYLGHGZKL.KVHWVDOOWKH.RQWUROV
WRDGHILQHGVWDWH7KLVLVPRVWRIWHQXVHGDVDUHV.XHRSHUDWLRQWREULQJWKHLQVWUXPHQW
LQWRDNQRZQ.RQGLWLRQZKHQLWLVJLYLQJXQH[SH.WHGUHVXOWV$OLVWLQJRIWKHVHWWLQJV
ZKL.KDUHLQYRNHGE\WKHXVHRIWKLVIXQ.WLRQ.DQEHIRXQGLQDSSHQGL[(
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
&RQILJXUDWLRQ0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH&RQILJXUDWLRQLWHP
D..HVVHVWKH&RQILJXUDWLRQPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH&RQILJXUDWLRQ0HQX6LQJOH5HIHUHQ.H0RGH
7KH&RQILJXUDWLRQPHQXKDVWKUHH.RQWUROVXVHGWRVHWWKHLQVWUXPHQW¶VEDVL.RSHUDWLQJ
PRGHDQG.RQWUROVWRDGMXVWWKHOLQHIUHTXHQ.\UHMH.WLRQILOWHU¶V.HQWHUIUHTXHQ.\WKH
1RLVH0HDVXUHPHQWPRGHDQGWKH1RLVH%XIIHU/HQJWK&KDQJHVWRWKHVHWWLQJRIWKHVH
.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW NH\V
,WLVDOVRXVHGWRD..HVVWKH&RPPXQL.DWLRQVDQG$QDORJ2XWSXWVPHQXV7KH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 71/217
&KDSWHU)52173$1(/23(5$7,21
UHODWLRQVKLSRIWKHWKHVHPHQXVWR0DLQ0HQXLVVKRZQLQILJXUH1RWHWKDWDV
ZLWKWKHPDLQPHQXVWUX.WXUHVKRZQLQILJXUHLWLVSRVVLEOHWRUHWXUQWRWKH0DLQ
'LVSOD\IURPDQ\PHQXE\SUHVVLQJWKH0DLQ'LVSOD\NH\EXWWKLVKDVEHHQRPLWWHG
IURPILJXUHIRUWKHVDNHRI.ODULW\
)LJXUH&RQILJXUDWLRQ0HQX6WUX.WXUH
7KH.RQWUROVRQWKH&RQILJXUDWLRQPHQXRSHUDWHDVIROORZV
/,1()5(48(1&<7KLV.RQWUROLVXVHGWRVHWWKH.HQWHUIUHTXHQ.\RIWKHOLQHIUHTXHQ.\UHMH.WLRQILOWHU
DQGVRVKRXOGEHVHWWRWKHSUHYDLOLQJOLQHIUHTXHQ.\LHRU+]
12,6(0($685(0(177KLV.RQWUROLVXVHGWR.RQILJXUHWKHLQVWUXPHQWIRUQRLVHPHDVXUHPHQWV:KHQWXUQHG
21WKH0DLQ'LVSOD\RXWSXWGLVSOD\VVHHVH.WLRQDUHVHWDVIROORZV
'LVSOD\3RVLWLRQ 'LVSOD\HG2XWSXW
1RLVHH[SUHVVHGLQ9+]LQODUJHGLJLWV
1RLVHH[SUHVVHGLQ9+]DVDEDUJUDSK
;RXWSXWLQH[SUHVVHGDVDSHU.HQWDJHRIWKHIXOOV.DOH
VHQVLWLYLW\DVDEDUJUDSK
0DJQLWXGHRXWSXW5RXWSXWLQH[SUHVVHGDVD SHU.HQWDJHRIWKHIXOOV.DOHVHQVLWLYLW\LQODUJHGLJLWV
7KHDYDLODEOHRXWSXWWLPH.RQVWDQWLVUHVWUL.WHGWRWKHYDOXHVLQWKHUDQJHVWR
PVLQ.OXVLYHVLQ.HLWLVRQO\DWWKHVHYDOXHVWKDWWKHQRLVHPHDVXUHPHQWVDUH
.DOLEUDWHGDQGWKH6\Q.KURQRXVWLPH.RQVWDQW.RQWUROVH.WLRQLVWXUQHGRII
7KHRXWSXWILOWHUVORSHLVDOVRUHVWUL.WHGWRHLWKHURUG%R.WDYH
:KHQWKHQRLVHPHDVXUHPHQW.RQWUROLVWXUQHG2))WKHQWKHLQVWUXPHQWLV.RQILJXUHG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 72/217
&KDSWHU)52173$1(/23(5$7,21
IRUQRUPDOOR.NLQDPSOLILHURSHUDWLRQ
12,6(%8))(5/(1*7+
7KLV.RQWUROZKL.KLVRQO\D.WLYHZKHQWKHDERYH12,6(0($685(0(17.RQWUROLV
WXUQHG21VHWVWKHDYHUDJLQJWLPHRIWKHEXIIHUXVHGWRGHWHUPLQHWKHPHDQYDOXHRIWKH
RXWSXWVLJQDOZKHQPDNLQJQRLVHPHDVXUHPHQWV6HWWLQJVRI2IIVVVDQGV
.DQVHWXVLQJWKHDGMD.HQW NH\
7KHRSHUDWLRQRIWKLV.RQWUROLVGHV.ULEHGLQPRUHGHWDLOLQVH.WLRQ
)LUPZDUHYHUVLRQ;;7KLVOLQHLPPHGLDWHO\XQGHUWKHPHQXWLWOHJLYHVWKHYHUVLRQQXPEHURIWKH
LQVWUXPHQWVRSHUDWLQJILUPZDUH7KHILUPZDUHLQWKHLQVWUXPHQW.DQEHXSGDWHGWRWKH
ODWHVWUHYLVLRQE\.RQQH.WLQJLWWRD3&YLDWKH56LQWHUID.HDQGUXQQLQJDQ8SGDWH
SURJUDP
$QDORJ2XWSXWV
3UHVVLQJDNH\DGMD.HQWWRWKLVLWHPGLVSOD\VWKH$QDORJ2XWSXWVPHQXZKL.KLVXVHGWRGHILQHZKL.KLQVWUXPHQWRXWSXWVDUH.RQYHUWHGWRDQDORJYROWDJHVDQGPDGH
DYDLODEOHDWWKH&+DQG&+.RQQH.WRUVRQWKHUHDUSDQHO7KLVPHQXLVGHV.ULEHG
ODWHULQVH.WLRQ
2SWLRQV7KHNH\JLYHVD..HVVWRWKH2SWLRQV0HQXZKL.KLVXVHGWRLQVWDOOILUPZDUHRSWLRQV
ZLWKLQWKHLQVWUXPHQW,WLVGLV.XVVHGODWHULQVH.WLRQ
7XUQGLVSOD\RII3UHVVLQJWKLVNH\WXUQVRIIWKHGLVSOD\SDQHO3UHVVDQ\NH\WRWXUQLWED.NRQZKHQWKH
GLVSOD\UHYHUWVWRWKH0DLQ'LVSOD\
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH0DLQ0HQX
7KH9LUWXDO5HIHUHQ.H'XDO5HIHUHQ.HDQG'XDO+DUPRQL.PRGHVDUHGLV.XVVHGODWHU
LQVH.WLRQVDQGUHVSH.WLYHO\
&RPPXQL.DWLRQV0HQX
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGSUHVVLQJWKH&RPPXQL.DWLRQVNH\D..HVVHV
WKH&RPPXQL.DWLRQV0HQXVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 73/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH&RPPXQL.DWLRQV0HQX
7KH&RPPXQL.DWLRQVPHQXKDVNH\VWRD..HVVWKUHHVXEPHQXV
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&RQILJXUDWLRQ0HQX
566HWWLQJV0HQX
:KHQWKH&RPPXQL.DWLRQVPHQXLVGLVSOD\HGSUHVVLQJWKH566HWWLQJVNH\
D..HVVHVWKH566HWWLQJVPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH566HWWLQJV0HQX
7KLVPHQXKDVVHYHQ.RQWUROVDIIH.WLQJWKH56.RPSXWHULQWHUID.HDVIROORZV
%$8'5$7(7KLV.RQWUROVHWVWKHEDXGUDWHWRRQHRIWKHIROORZLQJYDOXHV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 74/217
&KDSWHU)52173$1(/23(5$7,21
%DXG5DWHELWVSHUVH.RQG
'$7$%,767KLV.RQWUROVHWVWKHGDWDWUDQVPLVVLRQWRRQHRIIRXUIRUPDWV
'DWD%LWV 'HV.ULSWLRQ
SDULW\ GDWDELWVSDULW\ELW
SDULW\ GDWDELWVSDULW\ELW
QRSDULW\ GDWDELWVSDULW\ELW
QRSDULW\ GDWDELWVSDULW\ELW
$''5(66:KHQPRUHWKDQRQH.RPSDWLEOHLQVWUXPHQWLV.RQQH.WHGLQGDLV\.KDLQIDVKLRQE\
.RXSOLQJWKH$8;56UHDUSDQHOSRUWRQRQHWRWKH56SRUWRQWKHQH[WWKHQ
WKLV.RQWUROLVXVHGWRGHILQHWKHLQVWUXPHQWV56DGGUHVV$OOGDLV\.KDLQHG
LQVWUXPHQWVUH.HLYH.RPPDQGVEXWRQO\WKHLQVWUXPHQW.XUUHQWO\EHLQJDGGUHVVHGZLOO
LPSOHPHQWRUUHVSRQGWRWKHPH[.HSWRI.RXUVHWKH.RPPDQGWKDW.KDQJHVWKH
LQVWUXPHQWWREHDGGUHVVHG
(&+27KLV.RQWUROZKHQVZLW.KHGRQ.DXVHVWKHPRGHOWRH.KRHD.K.KDUD.WHU
UH.HLYHGRYHUWKH56LQWHUID.HED.NWRWKH.RQWUROOLQJ.RPSXWHU7KH.RPSXWHU
VKRXOGZDLWXQWLOWKHH.KRHG.KDUD.WHULVUHWXUQHGEHIRUHLWVHQGVWKHQH[W.KDUD.WHU
:KHQVZLW.KHGRII.KDUD.WHUH.KRLVVXSSUHVVHG
127(&KDUD.WHUH.KRVKRXOGDOZD\VEHVZLW.KHGRQH[.HSWZKHQ.RQWUROOLQJWKH
LQVWUXPHQWPDQXDOO\IURPDVLPSOH56WHUPLQDOZKHUHWKHPD[LPXPVSHHG
ZLWKZKL.K.KDUD.WHUV.DQEHVHQWWRWKHLQVWUXPHQWLVOLPLWHGE\WKHVSHHGRI
KXPDQW\SLQJ
3520377KLV.RQWUROKDVWZRVHWWLQJVDVIROORZV
21$SURPSW.KDUD.WHULVJHQHUDWHGE\WKHPRGHODIWHUHD.K.RPPDQGUHVSRQVH
WRLQGL.DWHWKDWWKHLQVWUXPHQWLVUHDG\IRUDQHZ.RPPDQG7KHSURPSW.KDUD.WHU
LVHLWKHUDRUD",ID"LVJHQHUDWHGLWLQGL.DWHVWKDWDQRYHUORDGUHIHUHQ.H
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 75/217
&KDSWHU)52173$1(/23(5$7,21
XQOR.NSDUDPHWHUHUURURU.RPPDQGHUURUKDVR..XUUHG
2)) 1RSURPSW.KDUD.WHULVJHQHUDWHG
'(/,0,7(5
7KH.KDUD.WHUVKRZQLVWKDWVHQWE\WKHOR.NLQDPSOLILHUWRVHSDUDWHWZRQXPHUL.YDOXHVLQDWZRYDOXHUHVSRQVHVX.KDVWKDWJHQHUDWHGE\WKH03.RPPDQG7KH
.RUUHVSRQGLQJ$6&,,YDOXHRIWKLV.KDUD.WHULVDOVRVKRZQLQEUD.NHWV)RUH[DPSOH
YDOXH.RUUHVSRQGVWRD³´.RPPD
3$5,7<7KLV.RQWUROVHWVWKHSDULW\.KH.NSRODULW\ZKHQWKH'DWD%LWV.RQWUROVSH.LILHVWKDWD
SDULW\ELWVKRXOGEHXVHG,WVKRXOGEHVHWWRPDW.KWKHVHWWLQJRIWKH.RQWUROOLQJ
.RPSXWHU
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&RQILJXUDWLRQ0HQXDQG
SUHVVLQJWKH&RPPXQL.DWLRQV0RQLWRUNH\D..HVVHVWKH&RPPXQL.DWLRQV0RQLWRU
GLVSOD\
*3,%6HWWLQJV0HQX
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH*3,%
6HWWLQJVLWHPD..HVVHVWKH*3,%6HWWLQJVPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH*3,%6HWWLQJV0HQX
7KLVPHQXKDVILYH.RQWUROVDIIH.WLQJWKH*3,%.RPSXWHULQWHUID.HDQGDNH\IRU
D..HVVLQJWKH&RPPXQL.DWLRQV0RQLWRUGLVSOD\DVIROORZV
*3,%$''5(667KLV.RQWUROVHWVWKH*3,%.RPPXQL.DWLRQVDGGUHVVWRDQ\YDOXHEHWZHHQDQG
(D.KLQVWUXPHQWXVHGRQWKH*3,%EXVPXVWKDYHDXQLTXHDGGUHVVVHWWLQJ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 76/217
&KDSWHU)52173$1(/23(5$7,21
*3,%7(50,1$7257KLVKDVWKUHHSRVVLEOHVHWWLQJVDVIROORZV
&5$.DUULDJHUHWXUQLVWUDQVPLWWHGDWWKHHQGRIDUHVSRQVHVWULQJDQGLQDGGLWLRQWKH
*3,%LQWHUID.HOLQH(2,HQGRILQVWUX.WLRQLVDVVHUWHG
&5/)$.DUULDJHUHWXUQIROORZHGE\DOLQHIHHGDUHWUDQVPLWWHGDWWKHHQGRIDUHVSRQVH
VWULQJDQGLQDGGLWLRQWKH*3,%LQWHUID.HOLQH(2,HQGRILQVWUX.WLRQLVDVVHUWHG
ZLWKWKHOLQHIHHG.KDUD.WHU
(2,7KH*3,%LQWHUID.HOLQH(2,HQGRILQVWUX.WLRQLVDVVHUWHGDWWKHHQGRIWKH
UHVSRQVHVWULQJ7KLVJLYHVWKHIDVWHVWSRVVLEOHRSHUDWLRQVLQ.HRWKHUWHUPLQDWLRQ
.KDUD.WHUVDUHQRWQHHGHG
6540$6. 7KHLQVWUXPHQWKDVWKHDELOLW\WRJHQHUDWHDVHUYL.HUHTXHVWRQWKH*3,%LQWHUID.HWR
VLJQDOWRWKH.RQWUROOLQJ.RPSXWHUWKDWXUJHQWDWWHQWLRQLVUHTXLUHG7KHUHTXHVWLV
JHQHUDWHGZKHQWKHUHVXOWRIDORJL.DOELWZLVH$1'RSHUDWLRQEHWZHHQWKH6HUYL.H
5HTXHVW0DVN%\WHVHWE\WKLV.RQWURODVDGH.LPDOYDOXHDQGWKHLQVWUXPHQWV6WDWXV
%\WHLVQRQ]HUR7KHELWDVVLJQPHQWVIRUWKH6WDWXV%\WHDUHDVIROORZV
%LW 'H.LPDO9DOXH 6WDWXV%\WH
.RPPDQG.RPSOHWH
LQYDOLG.RPPDQG
.RPPDQGSDUDPHWHUHUURU
UHIHUHQ.HXQOR.N
RYHUORDG QHZ$'&YDOXHVDYDLODEOH
DIWHUH[WHUQDOWULJJHU
DVVHUWHG654
GDWDDYDLODEOH
+HQ.HIRUH[DPSOHLIWKH654PDVNE\WHLVVHWWRGH.LPDOLHELWDVVHUWHGD
VHUYL.HUHTXHVWZRXOGEHJHQHUDWHGDVVRRQDVDQRYHUORDGR..XUUHGLIWKH654PDVN
E\WHZHUHVHWWRLHQRELWVDVVHUWHGWKHQVHUYL.HUHTXHVWVZRXOGQHYHUEH
JHQHUDWHG
7(67(&+2:KHQWKLV.RQWUROLVHQDEOHGDOOWUDQVPLVVLRQVWRDQGIURPWKHLQVWUXPHQWYLDWKH
*3,%LQWHUID.HDUHH.KRHGWRWKH56LQWHUID.H+HQ.HLIDWHUPLQDOLV.RQQH.WHGWR
WKHODWWHUSRUWLWZLOOGLVSOD\DQ\.RPPDQGVVHQWWRWKHLQVWUXPHQWDQGDQ\UHVSRQVHV
JHQHUDWHGZKL.K.DQEHXVHIXOGXULQJSURJUDPGHYHORSPHQW:KHQGLVDEOHGH.KRLQJ
GRHVQRWR..XU7KH.RQWUROVKRXOGDOZD\VEHGLVDEOHGZKHQQRWXVLQJWKLVIHDWXUH
VLQ.HLWVORZVGRZQ.RPPXQL.DWLRQV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 77/217
&KDSWHU)52173$1(/23(5$7,21
'(/,0,7(57KH.KDUD.WHUVKRZQLVWKDWVHQWE\WKHOR.NLQDPSOLILHUWRVHSDUDWHWZRQXPHUL.
YDOXHVLQDWZRYDOXHUHVSRQVHVX.KDVWKDWJHQHUDWHGE\WKH03.RPPDQG7KH
.RUUHVSRQGLQJ$6&,,YDOXHRIWKLV.KDUD.WHULVDOVRVKRZQLQEUD.NHWV)RUH[DPSOH
YDOXH.RUUHVSRQGVWRD³´.RPPD
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&RQILJXUDWLRQ0HQXDQG
SUHVVLQJWKH&RPPXQL.DWLRQV0RQLWRUNH\D..HVVHVWKH&RPPXQL.DWLRQV0RQLWRU
GLVSOD\
&RPPXQL.DWLRQV0RQLWRU
:KHQWKH&RPPXQL.DWLRQV0HQXLVGLVSOD\HGSUHVVLQJWKH&RPPXQL.DWLRQVPRQLWRU
NH\D..HVVHVWKH&RPPXQL.DWLRQVPRQLWRUGLVSOD\VKRZQLQILJXUH,WPD\DOVR
EHD..HVVHGYLDWKH566HWWLQJVDQG*3,%6HWWLQJVPHQXV
)LJXUH&RPPXQL.DWLRQV0RQLWRU
7KHPRQLWRULVXVHIXOZKHQDWWHPSWLQJWRHVWDEOLVK.RPPXQL.DWLRQVYLDWKH.RPSXWHU
LQWHUID.HVIRUWKHILUVWWLPHRULIDSUREOHPLVVXVSH.WHG
7KH,QSXWVLGHRIWKHGLVSOD\VKRZVDOORIWKH.KDUD.WHUVWKDWKDYHEHHQUH.HLYHGIURP
WKHLQWHUID.HZKHWKHUYDOLGRUQRW7KH2XWSXWVLGHRIWKHGLVSOD\VKRZVDOOWKH
.KDUD.WHUVWKDWKDYHEHHQJHQHUDWHGE\WKHLQVWUXPHQWDQGVHQWWRWKHLQWHUID.H
,I.KDUD.WHUVUH.HLYHGGRQRWPDW.KWKRVHVHQWE\WKH.RQWUROOLQJ.RPSXWHUWKHQWKLVLQGL.DWHVWKDWDQHUURUKDVR..XUUHGHLWKHULQWKHKRVW.RPSXWHURULQWHUID.H.DEOH,I
WKHLQWHUID.H.DEOHLVNQRZQWREHJRRGWKHQUH.KH.NHLWKHUWKH*3,%RU56
.RPPXQL.DWLRQVVHWWLQJV
&/($56&5((17KHLQSXWDQGRXWSXWGLVSOD\VV.UROORQ.HWKH\DUHIXOOVRWKDWWKH\DOZD\VGLVSOD\WKH
PRVWUH.HQW.KDUD.WHUVUH.HLYHGDQGVHQW3UHVVLQJWKH&OHDU6.UHHQNH\.OHDUVERWK
DUHDV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 78/217
&KDSWHU)52173$1(/23(5$7,21
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRHLWKHUWKH&RPPXQL.DWLRQVPHQXRU
WKH*3,%6HWWLQJVPHQXRUWKH566HWWLQJPHQXGHSHQGLQJRQKRZWKH
&RPPXQL.DWLRQV0RQLWRUGLVSOD\ZDVD..HVVHG
$QDORJ2XWSXWV0HQX6LQJOH9LUWXDO5HIHUHQ.H
0RGHV
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGSUHVVLQJWKH$QDORJ2XWSXWVNH\D..HVVHV
WKH$QDORJ2XWSXWV0HQXVKRZQLQILJXUH
)LJXUH$QDORJ2XWSXWV0HQX1RUPDO2SHUDWLQJ0RGH
6LQJOH9LUWXDO5HIHUHQ.H0RGHV
7KH$QDORJ2XWSXWVPHQXKDVWKUHH.RQWUROV.KDQJHVWRWKHVHWWLQJRIZKL.K.DQEH
PDGHE\XVLQJWKHDGMD.HQW NH\V
23(5$7,1*02'(7KLV.RQWUROGHWHUPLQHVWKHSRVLWLRQIURPZKL.KWKHDQDORJRXWSXWVDUHGHULYHGLQWKH
.LU.XLWVHHILJXUHDQGKHQ.HWKHUDWHDWZKL.KWKH\DUHXSGDWHG,WDOVRDIIH.WVWKH
DYDLODEOHRXWSXWILOWHUVORSHDQGWKHSHUPLWWHGUDQJHRIWLPH.RQVWDQWV,WKDVWZR
VHWWLQJVDVIROORZV
1250$/
,QWKLVVHWWLQJWKH&+DQG&+DQDORJRXWSXWVDUHGHULYHGIURPWKHRXWSXW
SUR.HVVRU7KHXSGDWHUDWHLVDOZD\VN+]WKHRXWSXWILOWHUWLPH.RQVWDQW.DQEHVHW
WRYDOXHVEHWZHHQVDQGNVLQDVHTXHQ.HDQGDOOIRXURXWSXWILOWHU
VORSHVHWWLQJVDUHDYDLODEOH
,QWKLVPRGHWKH&+$1$/2*287387DQG&+$1$/2*287387.RQWUROV.DQHD.KEH
VHWWRDQ\RIWKHIROORZLQJWHQDYDLODEOHVHWWLQJV
;9IV
:KHQVHWWR;WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH;IVIURQWSDQHOGLVSOD\DVIROORZV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 79/217
&KDSWHU)52173$1(/23(5$7,21
; &+9ROWDJH
9
9
9
9
9
<9IV
:KHQVHWWR<WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH<IVIURQWSDQHOGLVSOD\DVIROORZV
< &+9ROWDJH
9
9
9
9
9
0$*9IV
:KHQVHWWR0$*WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH0$*IVRU5IURQWSDQHOGLVSOD\VDVIROORZV
0$*IV &+9ROWDJH
9
9
9
3+$6(9
:KHQLQWKLVVHWWLQJWKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH3+$RUTIURQWSDQHOGLVSOD\VDVIROORZV
3+$RUTGHJ &+9ROWDJH
9
9
9
9
9
3+$6(9
:KHQLQWKLVVHWWLQJWKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH3+$RUT
IURQWSDQHOGLVSOD\DVIROORZV
3+$RUTGHJ &+9ROWDJH
9
9
9
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 80/217
&KDSWHU)52173$1(/23(5$7,21
12,6(9IV
:KHQVHWWR12,6(WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH1IVIURQWSDQHOGLVSOD\DVIROORZV
1IV &+9ROWDJH
9
9 9
1RWH:KHQ12,6(LVVHOH.WHGDVDQRXWSXWWKH1RLVH0HDVXUHPHQW0RGH
&RQILJXUDWLRQ0HQXPXVWEH21,ILWLVQRWDZDUQLQJPHVVDJHLVGLVSOD\HG
ZKL.KRIIHUVWKHRSWLRQRIWXUQLQJLWRQRUGHVHOH.WLQJ12,6(DVDQDQDORJ
RXWSXW
5$7,2
:KHQVHWWR5$7,2WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKHUHVXOWRIWKH5$7,2.DO.XODWLRQZKL.KLVGHILQHGDV
IROORZV
×=
,QSXW$'&
RXWSXW;5$7,2
ZKHUH;RXWSXWLVWKH;.KDQQHORXWSXWDVDSHU.HQWDJHRIWKHIXOOV.DOHVHQVLWLYLW\
DQG$'&LVWKHYROWDJHDSSOLHGWRWKH$'&LQSXW.RQQH.WRURQWKHUHDUSDQHO
H[SUHVVHGLQYROWV+HQ.HIRUH[DPSOHLIWKHLQVWUXPHQWZHUHPHDVXULQJD
P9VLJQDOZKHQVHWWRWKHP9VHQVLWLYLW\VHWWLQJWKH;.KDQQHORXWSXW
ZHUHPD[LPL]HGDQGD9VLJQDOZHUHDSSOLHGWRWKH$'&LQSXWWKHQWKHYDOXH
RI5$7,2ZRXOGEH
5$7,2
5$7,2
=
×=
7KHUHODWLRQVKLSEHWZHHQWKHYROWDJHDWWKH&+&+.RQQH.WRUDQGWKH5$7,2
YDOXHLVGHILQHGDVIROORZV
5$7,2 &+9ROWDJH
9
9
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 81/217
&KDSWHU)52173$1(/23(5$7,21
/2*5$7,2
:KHQVHWWR/2*5$7,2WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDU
SDQHOZLOORXWSXWDYROWDJHUHODWHGWRWKH/2*5$7,2.DO.XODWLRQZKL.KLV
GHILQHGDVIROORZV
×
= LQSXW$'&
RXWSXW;
ORJ5$7,2/2*
ZKHUH;RXWSXWLVWKH;.KDQQHORXWSXWDVDSHU.HQWDJHRIWKHIXOOV.DOHVHQVLWLYLW\
DQG$'&LVWKHYROWDJHDSSOLHGWRWKH$'&LQSXW.RQQH.WRURQWKHUHDUSDQHO
H[SUHVVHGLQYROWV+HQ.HIRUH[DPSOHLIWKHLQVWUXPHQWZHUHPHDVXULQJD
P9VLJQDOZKHQVHWWRWKHP9VHQVLWLYLW\VHWWLQJWKH;.KDQQHORXWSXW
ZHUHPD[LPL]HGDQGD9VLJQDOZHUHDSSOLHGWRWKH$'&LQSXWWKHQWKHYDOXH
RI/2*5$7,2ZRXOGEH
5$7,2/2*
ORJ5$7,2/2*
×
=
7KHUHODWLRQVKLSEHWZHHQWKHYROWDJHDWWKH&+&+.RQQH.WRUDQGWKH
/2*5$7,2YDOXHLVGHILQHGDVIROORZV
/2*5$7,2 &+9ROWDJH
9
9
9
1RWH,I5$7,2WKHQ/2*5$7,2
(48$7,21
:KHQVHWWR(48$7,21WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDU
SDQHOZLOORXWSXWDYROWDJHUHODWHGWR(TXDWLRQZKL.KLVGHILQHGXVLQJWKH
2XWSXW(TXDWLRQVPHQXVHHVH.WLRQDVIROORZV
(48$7,21 &+9ROWDJH
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 82/217
&KDSWHU)52173$1(/23(5$7,21
(48$7,21
:KHQVHWWR(48$7,21WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDU
SDQHOZLOORXWSXWDYROWDJHUHODWHGWR(TXDWLRQZKL.KLVGHILQHGXVLQJWKH8VHU
(TXDWLRQPHQXVHHVH.WLRQDVIROORZV
(48$7,21 &+9ROWDJH
9 9
9
)$67
:KHQWKHRSHUDWLQJPRGHLVVHWWR)DVWWKH&+DQG&+DQDORJRXWSXWVDUHGHULYHG
IURPWKHILUVWVWDJHRIRXWSXWILOWHULQJRUWKHIDVWPDJQLWXGH.RQYHUWHU7KHXSGDWHUDWH
LVLQ.UHDVHGWR0+]ZKHQWKHWLPH.RQVWDQWLVVHWWRDQ\YDOXHIURPVWRPV
EXWUHPDLQVDWN+]IRUORQJHUWLPH.RQVWDQWV7KHRXWSXWILOWHUVORSHLVUHVWUL.WHGWR
HLWKHURUG%R.WDYH7KHDYDLODEOHRSWLRQVIRUWKH&+$1$/2*287387DQG
&+$1$/2*287387.RQWUROVDUHUHGX.HGWRWKHIROORZLQJ
&+$1$/2*287387,QWKH)DVWPRGHWKLV.DQRQO\EHVHWWR
;9IV
7KH&+.RQQH.WRURQWKHUHDUSDQHOZLOORXWSXWDYROWDJHUHODWHGWRWKH;IV
IURQWSDQHOGLVSOD\DVIROORZV
; &+9ROWDJH
9
9
9
9 9
&+$1$/2*287387,QWKH)DVWPRGHWKLV.DQRQO\EHVHWWRHLWKHU
<9IV
:KHQVHWWR<WKH&+.RQQH.WRURQWKHUHDUSDQHOZLOORXWSXWDYROWDJHUHODWHG
WRWKH<IVIURQWSDQHOGLVSOD\DVIROORZV
< &+9ROWDJH
9 9
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 83/217
&KDSWHU)52173$1(/23(5$7,21
RU
0$*9IV
:KHQVHWWR0$*WKH&+.RQQH.WRURQWKHUHDUSDQHOZLOORXWSXWDYROWDJH
UHODWHGWRWKH0$*IVRU5IURQWSDQHOGLVSOD\VDVIROORZV
0$*IV &+9ROWDJH 9
9
9
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&RQILJXUDWLRQ0HQX
2SWLRQV0HQX
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGSUHVVLQJWKH2SWLRQVNH\D..HVVHVWKH
2SWLRQV0HQXVKRZQLQILJXUH
)LJXUH2SWLRQV0HQX
7KHRSWLRQVPHQXLVXVHGWRLQVWDOODGGLWLRQDOILUPZDUHRSWLRQVDQGVKRZVZKL.K
RSWLRQVDUHDOUHDG\ILWWHG,IDQRSWLRQLVSXU.KDVHGDWWKHVDPHWLPHDVWKHLQVWUXPHQW
WKHQWKHID.WRU\ZLOOLQVWDOOLWDQGQRIXUWKHUD.WLRQLVUHTXLUHG,IKRZHYHULWLVERXJKW
DWDODWHUGDWHWKHQWKHXVHUZLOOQHHGWRSURYLGHGHWDLOVRIWKHLQVWUXPHQWVVHULDO
QXPEHUZLWKKLVRUGHU,QUHWXUQKHZLOOEHJLYHD.HUWLIL.DWHZLWKDXQLTXHHLJKWGLJLW
2SWLRQH\QXPEHUZKL.K.DQEHXVHGWRHQDEOHWKHRSWLRQRQWKHLQVWUXPHQW
7KH.RQWUROVRQWKH2SWLRQV0HQXRSHUDWHDVIROORZV
,167$//237,213UHVVLQJWKLVNH\GLVSOD\VWKHNH\SDGL.RQ(QWHUWKH2SWLRQH\QXPEHU\RXKDYH
EHHQJLYHQXVLQJWKHQXPHUL.DONH\SDGDQGSUHVVWKH WRHQWHUWKHQXPEHU7KH8
V\PEROQH[WWRWKHRSWLRQEHLQJLQVWDOOHGLQWKHOLVWRIDYDLODEOHRSWLRQVRQWKHULJKW
KDQGVLGHRIWKHV.UHHQZLOO.KDQJHWRD9WRLQGL.DWHVX..HVVIXOLQVWDOODWLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 84/217
&KDSWHU)52173$1(/23(5$7,21
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&RQILJXUDWLRQ0HQX
6SH.WUDO'LVSOD\
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJWKH6SH.WUDOGLVSOD\NH\D..HVVHVWKH
6SH.WUDO'LVSOD\PHQXDW\SL.DOH[DPSOHRIZKL.KLVVKRZQLQILJXUH
)LJXUH6SH.WUDO'LVSOD\0HQX
7KH6SH.WUDO'LVSOD\PHQXVKRZVWKHUHVXOWRIDGLV.UHWH)RXULHUWUDQVIRUP')7RI
WKHVLJQDODWWKHLQSXWIROORZLQJDPSOLIL.DWLRQDQGILOWHULQJE\WKHOLQHIUHTXHQ.\
UHMH.WLRQDQGDQWLDOLDVLQJILOWHUVEXWSULRUWRWKHGHPRGXODWRUV,WVSULQ.LSDOIXQ.WLRQLV
WRDOORZWKHXVHUWRGHWHUPLQHWKHUHODWLYHVSH.WUDOGHQVLW\RIWKHWRWDOVLJQDOSOXVQRLVH
EHLQJPHDVXUHGVRWKDW.KDQJHV.DQEHPDGHWRWKHUHIHUHQ.HIUHTXHQ.\WRDYRLG
SDUWL.XODUO\QRLV\UHJLRQV
1RWHWKDWWKH6SH.WUDO'LVSOD\PHQXGRHVQRWKDYHD.DOLEUDWHGYHUWL.DOD[LVDQGKHQ.H
LVQRWLQWHQGHGIRUPHDVXULQJRU.RPSDULQJVLJQDODPSOLWXGHV
7KH.HQWUDOVH.WLRQRIWKHGLVSOD\VKRZVDSORWRIVSH.WUDOGHQVLW\YHUWL.DOD[LVYHUVXV
IUHTXHQ.\KRUL]RQWDOD[LV7KHPHDVXUHPHQWIUHTXHQ.\UHVROXWLRQLVDGMXVWHGE\
XVLQJHLWKHUWKH5HV NH\VRUE\WKH RU NH\VDQG.DQEHVHWWRELQZLGWKV
RIN+]N+]N+]DQGN+]DVLQGL.DWHGE\WKH.RQWURODQQRWDWLRQ,QILJXUH
DERYHLWLVVHWWRN+]
7KHPHDVXUHPHQWUHVROXWLRQVHWVWKHRYHUDOOIUHTXHQ.\UDQJHRIWKH;D[LV$WD
UHVROXWLRQRIN+]WKHQRPLQDOUDQJHLVN+]WR0+]DOWKRXJKIUHTXHQ.LHVDERYH0+]DUHQRWXVXDOO\RILQWHUHVWVLQ.HWKH\OLHRXWVLGHWKHIUHTXHQ.\UDQJHRI
VLJQDOVWKDWWKH.DQPHDVXUH:LWKWKHILQHVWUHVROXWLRQRIN+]WKHGLVSOD\
UDQJHLVQRPLQDOO\N+]
:KHQWKHUHVROXWLRQLVVHWWRN+]RUILQHUWKHQWKH NH\VDGMD.HQWWRWKH
/RZHUDQG8SSHUIUHTXHQ.\OLPLWLQGL.DWRUVDWHD.KRIWKH;D[LV.DQEHXVHGWRV.UROO
WKURXJKWKHZKROHRIWKHDYDLODEOHIUHTXHQ.\UDQJH:KHQHLWKHUOLPLWLV.KDQJHGWKH
RWKHURQH.KDQJHVE\WKHVDPHDPRXQWWKHUHE\PDLQWDLQLQJWKHIUHTXHQ.\UHVROXWLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 85/217
&KDSWHU)52173$1(/23(5$7,21
/2*6&$/(/,1($56&$/(7KH NH\VDWWKHWRSULJKWKDQG.RUQHURIWKHGLVSOD\.KDQJHWKHYHUWL.DOGLVSOD\
EHWZHHQOLQHDUDQGORJDULWKPL..DOLEUDWLRQZLWKWKHSUHVHQWO\D.WLYHVHOH.WLRQEHLQJ
VKRZQ
581))7
:KHQWKH NH\DGMD.HQWWRWKH5XQ))7.RQWUROLVSUHVVHGWKHLQVWUXPHQWD.TXLUHVDQHZVHWRIGDWDSHUIRUPVDQ))7RQLWDQGGLVSOD\VWKHUHVXOWLQJVSH.WUXP
$.KDQJHLQWKHUHIHUHQ.HIUHTXHQ.\DOVR.DXVHVWKHGLVSOD\HGVSH.WUXPWREHXSGDWHG
/,9())7:KHQWKH NH\DGMD.HQWWRWKH/LYH))7.RQWUROLVSUHVVHGWKHLQVWUXPHQW
D.TXLUHVGDWDUHSHDWHGO\SHUIRUPVDQ))7RQLWDQGGLVSOD\VWKHUHVXOWLQJVSH.WUXP
XQWLOWKH6WRSNH\LVSUHVVHG
1RWH/LYHGDWDD.TXLVLWLRQLVQRWDYDLODEOHDWN+]DQGN+]PHDVXUHPHQW
UHVROXWLRQV
&XUVRU
7KH DQG .XUVRUPRYHPHQWNH\VPRYHWKHGLVSOD\.XUVRUIURPVLGHWRVLGH7KH
.XUVRUWDNHVWKHIRUPRIDVKRUWYHUWL.DOOLQHWKDWLVSRVLWLRQHGMXVWDERYHWKHWRSRIWKH
GDWD.XUYHDWWKHVHOH.WHGIUHTXHQ.\ZKL.KDSSHDUVMXVWEHORZWKH;D[LV,QILJXUH
WKH.XUVRU.DQEHVHHQSRVLWLRQHGDWN+]7KH.XUVRUPDNHVLWSRVVLEOHWR
REWDLQDQDSSUR[LPDWHIUHTXHQ.\IRUDQ\SHDNRQWKHGLVSOD\WKHUHE\SRVVLEO\
DVVLVWLQJLQLGHQWLI\LQJLWVVRXU.H
5HIHUHQ.H)UHTXHQ.\,QGL.DWRU
7KHGLVSOD\VKRZVWKHOHWWHU³5´.HQWHUHGDERYHWKHIUHTXHQ.\DWZKL.KWKHOR.NLQ¶V
UHIHUHQ.H.KDQQHOLV.XUUHQWO\RSHUDWLQJ7KLVPDNHVLWSRVVLEOHWRTXL.NO\LGHQWLI\WKH
VLJQDORILQWHUHVWIURPDOOWKHRWKHUVLJQDOVSUHVHQW
8VLQJWKH6SH.WUDO'LVSOD\0RGH
,QDW\SL.DOH[SHULPHQWLIWKHOR.NLQDPSOLILHU¶VRXWSXWLVPRUHQRLV\WKDQPLJKWEH
H[SH.WHGZLWKWKHJLYHQVHWWLQJVWKHQWKHVSH.WUXPRIWKHWRWDOLQSXWVLJQDOEHLQJ
PHDVXUHG.DQEHGHWHUPLQHGDQGGLVSOD\HGXVLQJWKH6SH.WUDO'LVSOD\PHQX,IVWURQJ
LQWHUIHULQJVLJQDOV.ORVHWRWKHUHIHUHQ.HIUHTXHQ.\DUHREVHUYHGWKHQWKHUHIHUHQ.H
IUHTXHQ.\VKRXOGLISRVVLEOHEH.KDQJHGVRWKDWRSHUDWLRQR..XUVLQDTXLHWHUUHJLRQ
$OWHUQDWLYHO\LWPD\EHSRVVLEOHWRVZLW.KRIIWKHVRXU.HRIWKHLQWHUIHUHQ.HZKL.K
PLJKWIRUH[DPSOHEH.DXVHGE\D.RPSXWHUPRQLWRU
)RUH[DPSOHLQILJXUHWKH.XUVRUKDVILUVWEHHQXVHGWRLGHQWLI\WKHVWURQJVLJQDOVDWN+]N+]N+]DQG0+]DQGWKHQWKHUHIHUHQ.HIUHTXHQ.\KDV
EHHQVHWWRN+])LQDOO\WKHVSH.WUDOGLVSOD\KDVEHHQUHUXQWR.RQILUPWKDWWKH
UHIHUHQ.HIUHTXHQ.\LVZHOOVHSDUDWHGIURPWKHLQWHUIHULQJIUHTXHQ.LHV
3UHVVLQJWKH3UHYLRXV0HQXNH\H[LWVWKH6SH.WUDO'LVSOD\PHQXDQGUHWXUQVWR
0DLQ0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 86/217
&KDSWHU)52173$1(/23(5$7,21
0DLQ0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJWKH0DLQPHQXNH\D..HVVHV0DLQ0HQX
ZKL.KLVVKRZQLQILJXUH
)LJXUH0DLQ0HQX
0DLQ0HQXKDVNH\VXVHGWRD..HVVWKHH[WHQGHGIHDWXUHVIRXQGLQWKHPRGHO
YLDDVHULHVRIVXEPHQXV7KHUHODWLRQVKLSRIWKHVHVXEPHQXVWR0DLQ0HQXLV
VKRZQLQILJXUH1RWHWKDWDVZLWKWKHPDLQPHQXVWUX.WXUHVKRZQLQILJXUH
LWLVSRVVLEOHWRUHWXUQWRWKH0DLQ'LVSOD\IURPWKHVXEPHQXVE\SUHVVLQJWKH
0DLQ'LVSOD\NH\EXWWKLVKDVEHHQRPLWWHGIURPILJXUHIRUWKHVDNHRI.ODULW\
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
)LJXUH0DLQ0HQX0HQX6WUX.WXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 87/217
&KDSWHU)52173$1(/23(5$7,21
&XUYH%XIIHU0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJWKH&XUYHEXIIHUNH\D..HVVHVWKH&XUYH
%XIIHUPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH&XUYH%XIIHU0HQX
7KH.XUYHEXIIHUPHQXKDVWKUHH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVLQWHUQDO
SRLQW.XUYHEXIIHUWZRVWDWXVLQGL.DWRUVDQGDNH\WRD..HVVDIXUWKHUVXEPHQXWKH
&XUYH6HOH.WPHQX
7,0(3(532,177KLV.RQWUROGHILQHVWKHLQWHUYDOEHWZHHQHD.KGDWDSRLQWLQWKH.XUYHEXIIHU,WPD\EH
VHWWRDQ\YDOXHEHWZHHQPVDQGîVLQPVLQ.UHPHQWV
&859(/(1*7+7KLV.RQWUROGHILQHVWKHQXPEHURISRLQWVWREHVWRUHGLQWKHLQWHUQDO.XUYHEXIIHUZKHQ
HLWKHUVLQJOHRUUHSHWLWLYHVZHHSVDUHH[H.XWHG7KHEXIIHU.DQKROGDPD[LPXPRI
SRLQWVVKDUHGHTXDOO\EHWZHHQWKH.XUYHW\SHVDVGHILQHGE\WKH&XUYH6HOH.W
PHQX+HQ.HIRUH[DPSOHLI.XUYHW\SHVDUHWREHVWRUHGWKHQWKHPD[LPXP.XUYH
OHQJWKIRUHD.K.XUYHLVSRLQWV
1RWHWKDWLIWKHQXPEHURI.XUYHVWREHVWRUHGLVLQ.UHDVHGEH\RQGWKDWZKL.KPD\EH
VWRUHGDWWKH.XUUHQW.XUYHOHQJWKWKHQWKH.XUYHOHQJWKLVUHGX.HGDXWRPDWL.DOO\
32,1766725('7KLVVKRZVWKHQXPEHURISRLQWVVWRUHGLQWKH.XUYHEXIIHU7KHQXPEHULVLQ.UHPHQWHG
DWWKHUDWHGHILQHGE\WKH7LPHSHU3RLQW.RQWURO2Q.RPSOHWLRQRIDVZHHSLQVLQJOH
VZHHSPRGHWKHQXPEHUZLOOEHWKHVDPHDVWKH&XUYH/HQJWK.RQWUROZKHUHDVLQ
PXOWLVZHHSPRGHWKHQXPEHULQ.UHPHQWV.RQWLQXRXVO\
6:((36&203/(7('7KLVVKRZVWKHQXPEHURI.RPSOHWHGVZHHSVZKHUHRQHVZHHSLVHTXDOWRWKH/HQJWK
.RQWUROVHWWLQJ2Q.RPSOHWLRQRIDVZHHSLQVLQJOHVZHHSPRGHWKHQXPEHUZLOOEH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 88/217
&KDSWHU)52173$1(/23(5$7,21
ZKHUHDVLQPXOWLVZHHSPRGHWKHQXPEHULQ.UHPHQWV.RQWLQXRXVO\
67$576,1*/(6:((37KLVNH\LQLWLDWHVDVLQJOHVZHHS,IWKH/HQJWK.RQWUROLVJUHDWHUWKDQDQGDVLQJOH
VZHHSLVLQSURJUHVVWKHQWKH.RQWUROV.KDQJHWR3DXVH6LQJOH6ZHHSDQG6WRS6LQJOH
6ZHHS
3$86(6,1*/(6:((37KLVNH\VWRSVGDWDD.TXLVLWLRQDWWKH.XUUHQWSRLQWEXWD.TXLVLWLRQPD\EHUHVWDUWHG
E\SUHVVLQJ&RQW6LQJOH6ZHHS
&2176,1*/(6:((37KLVNH\UHVWDUWVGDWDD.TXLVLWLRQIURPWKH.XUUHQWSRLQW
67236,1*/(6:((37KLVNH\VWRSVGDWDD.TXLVLWLRQDWWKH.XUUHQWSRLQW'DWDDOUHDG\D.TXLUHGUHPDLQVLQ
WKH.XUYHEXIIHU
67$5708/7,6:((37KLVNH\LQLWLDWHVPXOWLSOHVZHHSV7KH.RQWUROV.KDQJHWR3DXVH0XOWL6ZHHSDQG
6WRS0XOWL6ZHHS
3$86(08/7,6:((37KLVNH\VWRSVGDWDD.TXLVLWLRQDWWKH.XUUHQWSRLQWEXWD.TXLVLWLRQPD\EHUHVWDUWHG
E\SUHVVLQJ&RQW0XOWL6ZHHS
&21708/7,6:((37KLVNH\UHVWDUWVGDWDD.TXLVLWLRQIURPWKH.XUUHQWSRLQW
672308/7,6:((37KLVNH\VWRSVGDWDD.TXLVLWLRQDWWKH.XUUHQWSRLQW'DWDDOUHDG\D.TXLUHGUHPDLQVLQ
WKH.XUYHEXIIHU
75,**(502'(,17(;73(5&859(32,177KHVHWZR.RQWUROVGHWHUPLQHKRZGDWDD.TXLVLWLRQLVWULJJHUHG
,17,QWKLVVHWWLQJD.TXLVLWLRQVWDUWVZKHQD6WDUWNH\LVSUHVVHGRURQUH.HLSWRIDYDOLG
.RPSXWHU.RPPDQG
(;7,QWKLVVHWWLQJD.TXLVLWLRQLVWULJJHUHGE\WKHULVLQJHGJHRID7//SXOVHDSSOLHGWR
WKHUHDUSDQHO75,*.RQQH.WRU
3(5&859((D.KYDOLGWULJJHUZKHWKHULQWHUQDORUH[WHUQDO.DXVHD.RPSOHWH.XUYHRIGDWDWR
EHD.TXLUHGDWWKHVHOH.WHG7LPHSHU3RLQWUDWH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 89/217
&KDSWHU)52173$1(/23(5$7,21
3(532,177KH7LPHSHU3RLQW.RQWUROLVLQD.WLYHDQGHD.KGDWDSRLQWRUVHWRIGDWDSRLQWVLQ
WKH.DVHZKHUHPRUHWKDQRQHRXWSXWLVEHLQJUH.RUGHGLVD.TXLUHGRQUH.HLSWRID
YDOLGWULJJHU
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH0DLQ0HQX
&XUYH6HOH.W0HQX
:KHQWKH&XUYH%XIIHUPHQXLVGLVSOD\HGSUHVVLQJWKH&XUYHVHOH.WNH\D..HVVHVWKH
&XUYH6HOH.WPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH&XUYH6HOH.W0HQX
7KHXSSHUVH.WLRQRIWKH&XUYH6HOH.WPHQXKDVDOLVWRIVL[WHHQSRVVLEOHGDWDW\SHV
WKDW.DQEHVWRUHGWRWKH.XUYHEXIIHUDUUDQJHGLQIRXUURZVRIIRXU.ROXPQV7KUHH
.RQWUROVDOORZEHWZHHQRQHDQGVL[WHHQRIWKHVHGDWDW\SHVWREHVHOH.WHGIRUVWRUDJH
ZLWKWKRVHWKDWDUHVHOH.WHGEHLQJLQGL.DWHGE\EHLQJVKRZQLQUHYHUVHGWH[W
029(32,17(57KLV.RQWURODOORZVWKHÈSRLQWHUWREHPRYHGWRDQ\RQHRIWKHSRVVLEOHGDWDW\SHV
7KH DQG .XUVRUPRYHPHQWNH\V.DQEHDOVREHXVHGWRGRWKLV
(17(56(/(&7,21&/($56(/(&7,21,IWKHGDWDW\SHDGMD.HQWWRWKHÈSRLQWHULVQRWVHOH.WHGWKHQSUHVVLQJWKLVNH\.DXVHV
LWWREHVHOH.WHGDVLQGL.DWHGE\LWVEHLQJGLVSOD\HGLQUHYHUVHGWH[W,ILWLVDOUHDG\
VHOH.WHGWKHQSUHVVLQJWKHNH\GHVHOH.WVLW
127(7KHGDWDW\SHVVHOH.WHGIRUVWRUDJHPD\EH.KDQJHGE\.RQWUROVRQRWKHU
PHQXVDVIROORZV
$X[LOLDU\,20HQXVH.WLRQ
6HOH.WLQJDQ\RIWKHEXUVWD.TXLVLWLRQPRGHVDXWRPDWL.DOO\VHOH.WVWKH$'&RU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 90/217
&KDSWHU)52173$1(/23(5$7,21
$'&DQG$'&RXWSXWVIRUVWRUDJH
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&XUYH%XIIHUPHQX
6LQJOH*UDSK0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH6LQJOH*UDSKLWHP
D..HVVHVWKH6LQJOH*UDSKPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH6LQJOH*UDSK0HQX
7KH6LQJOH*UDSKPHQXSORWVWKHGDWDRIRQH.XUYHVWRUHGLQWKH.XUYHEXIIHU7KLV
DOORZVUHDOWLPHRUSRVWD.TXLVLWLRQGLVSOD\RIVHOH.WHGLQVWUXPHQWRXWSXWVLQVWULS
.KDUWIRUPDWDQGKDVD.XUVRUZKL.KDOORZVD..XUDWHGHWHUPLQDWLRQRIWKHRXWSXW
YDOXHDWDJLYHQVDPSOHSRLQW
,IWKHUHLVQRGDWDLQWKH.XUYHEXIIHUWKHQWKHJUDSKZLOOVKRZDVWUDLJKWOLQH
UHSUHVHQWLQJ]HUR,I.XUYHVWRUDJHLVDOUHDG\UXQQLQJRULIWKHUHLVGDWDLQWKH.XUYH
EXIIHUWKHQD.XUYHZLOOEHGLVSOD\HGZLWKWKHPRVWUH.HQWYDOXHDWWKHULJKWKDQGVLGH
RIWKHV.UHHQ
)LJXUHVKRZVWKHOD\RXWRIWKH6LQJOH*UDSKPHQX7KH.XUYHLVGLVSOD\HGLQWKH
.HQWUDOVH.WLRQRIWKHGLVSOD\ZLWKWKHNH\VRQHLWKHUVLGHEHLQJXVHGWRDGMXVWWKHD[HV
DQGWRVHOH.WWKHGDWDWREHVKRZQDVIROORZV
6&$/(NH\V7KHWRSDQGERWWRPOHIWKDQG NH\VDUHXVHGWRDGMXVWWKHXSSHUDQGORZHUOLPLWV
RIWKHYHUWL.DOD[LVZLWKDUHVROXWLRQWKHVHWPD[LPXPDQGPLQLPXPYDOXHVEHLQJ
VKRZQDGMD.HQWWRWKHP
$8726&$/(NH\V
7KHXSSHUDQGORZHUPLGGOHSDLUVRIOHIWKDQG NH\VDUHXVHGWRDXWRV.DOHWKH
XSSHUDQGORZHUOLPLWVRIWKHYHUWL.DOD[LVWRPDW.KWKHUDQJHSUHVHQWLQWKHYLVLEOH
VH.WLRQRIWKHGLVSOD\HG.XUYH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 91/217
&KDSWHU)52173$1(/23(5$7,21
7KHUHLVQRID.LOLW\IRUDGMXVWLQJWKH[D[LVV.DOHZKL.KDOZD\VVKRZVXSWR
SRLQWV+HQ.HLID.XUYHRIPRUHWKDQWKLVQXPEHURISRLQWVLVD.TXLUHGLWZLOOQRWEH
SRVVLEOHWRVKRZDOORIWKHSRLQWVRQWKHGLVSOD\DWWKHVDPHWLPH
&XUYH6HOH.WLRQNH\V
7KHNH\VRQWKHWRSULJKWKDQGVLGHRIWKHGLVSOD\DUHXVHGWRVHOH.WWKH.XUYHWREH
VKRZQIURPWKRVHVWRUHGLQWKH.XUYHEXIIHU$OO.XUYHVWKDW.DQEHVWRUHGPD\EHVHOH.WHGIRUGLVSOD\H[.HSWIRU(9(17WKHWZR.XUYHVUH.RUGLQJWKHUHIHUHQ.H
IUHTXHQ.\)54DQG)54DQGWKH.XUYHVUH.RUGLQJLQVWUXPHQWVHQVLWLYLW\VHWWLQJV
)RUH[DPSOHLIRQO\;'$7$DQG<'$7$.XUYHVZHUHVSH.LILHGXVLQJWKH&XUYH
6HOH.WVXEPHQXDVEHLQJUHTXLUHGWKHQWKHVHZRXOGEHWKHRQO\WZRVHOH.WLRQV
DYDLODEOH
67$5767233$86(&217NH\V
,QWKHVLQJOHJUDSKGLVSOD\PRGHD.TXLVLWLRQWRWKH.XUYHEXIIHUDQGKHQ.HGLVSOD\RI
GDWD.DQEHLQLWLDWHGXVLQJWKH6WDUWRU/RRS NH\V7KH6WDUWNH\VVWDUW
D.TXLVLWLRQLQWKHRQHVKRWPRGH7KLV.DXVHVGDWDWREHD.TXLUHGIRUWKHQXPEHURI
SRLQWVVSH.LILHGE\WKH.XUYHOHQJWK.RQWUROLQWKH&XUYH%XIIHUPHQXDQGRQ.H
.RPSOHWHD.TXLVLWLRQ.HDVHV'XULQJGDWDD.TXLVLWLRQWKH.RQWURONH\DQQRWDWLRQ
.KDQJHVWR3DXVHLISUHVVHGDJDLQD.TXLVLWLRQZLOOSDXVHDWWKH.XUUHQWGDWDSRLQWDQG
WKHDQQRWDWLRQ.KDQJHVDJDLQWR&RQW&RQWLQXH,IWKHNH\LVSUHVVHGDJDLQ
D.TXLVLWLRQ.RQWLQXHVIURPWKHSUHVHQWGDWDSRLQW
7KH/RRSNH\VDOVRVWDUWGDWDD.TXLVLWLRQEXWLQWKHORRSPRGHLQZKL.KWKH.XUYH
EXIIHUILOOVWR.DSD.LW\DQGLVWKHQVHTXHQWLDOO\RYHUZULWWHQE\QHZGDWD2Q.HWKLV
PRGHLVUXQQLQJWKH/RRS.RQWURONH\DQQRWDWLRQ.KDQJHVWR6WRSDQGSUHVVLQJWKH
DGMD.HQWNH\ZLOOWKHQVWRSD.TXLVLWLRQDWWKHSUHVHQWGDWDSRLQW
&85625NH\V
7KHERWWRPULJKWKDQG NH\VDQGWKH DQG .XUVRUPRYHPHQWNH\VPRYHWKHGLVSOD\HG.XUVRUZKL.KLVRQO\D.WLYHZKHQGDWDLVQRWEHLQJVWRUHGIURPVLGHWRVLGH
7KHSUHVHQWSRLQWQXPEHULVVKRZQLQWKHERWWRPULJKWKDQG.RUQHURIWKHV.UHHQDQG
WKHYDOXHRIWKH.XUYHDWLWVLQWHUVH.WLRQZLWKWKH.XUVRUDSSHDUVLQWKHWRSULJKWKDQG
.RUQHU:KHUHDSSOL.DEOHYDOXHVDUHDOZD\VJLYHQDVDSHU.HQWDJHRIIXOOV.DOHVLQ.H
WKHUHLVQRID.LOLW\WRGLVSOD\WKHPLQIORDWLQJSRLQWIRUPDW,IWKH.XUVRULVPRYHGIXOO\
WRWKHOHIWWKHQWKHGLVSOD\HGGDWDV.UROOVWRWKHULJKWLQJURXSVRIWHQSRLQWVDOORZLQJ
HDUOLHUGDWDWREHVKRZQ
,ID.TXLVLWLRQLVLQSURJUHVVWKHQWKH.XUVRULVDXWRPDWL.DOO\SRVLWLRQHGDWWKHULJKW
KDQGVLGHRIWKHGLVSOD\DUHDDQG.DQQRWEHPRYHG
3UHVVLQJWKH3UHYLRXV0HQXNH\RQWKHIURQWSDQHOH[LWVWKH6LQJOH*UDSKPHQXDQG
UHWXUQVWR0DLQ0HQX
'RXEOH*UDSK0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH'RXEOH*UDSKLWHP
D..HVVHVWKH'RXEOH*UDSKPHQXZKL.KLVVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 92/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH'RXEOH*UDSK0HQX
7KHGRXEOHJUDSKGLVSOD\LVVLPLODUWRWKDWRIWKHVLQJOHJUDSKEXWGLVSOD\VWZR
.XUYHV
,IWKHUHLVQRGDWDLQWKH.XUYHEXIIHUWKHQWKHJUDSKZLOOVKRZWZRKRUL]RQWDOVWUDLJKW
OLQHVUHSUHVHQWLQJ]HUR,I.XUYHVWRUDJHLVDOUHDG\UXQQLQJRULIWKHUHLVGDWDLQWKH
.XUYHEXIIHUWKHQWZR.XUYHVZLOOEHGLVSOD\HGZLWKWKHPRVWUH.HQWYDOXHVDWWKH
ULJKWKDQGVLGHRIWKHV.UHHQ
)LJXUHVKRZVWKHOD\RXWRIWKHGRXEOHJUDSKGLVSOD\7KHWZR.XUYHVDUH
GLVSOD\HGLQWKH.HQWUDOVH.WLRQRIWKHGLVSOD\ZLWKWKHNH\VRQHLWKHUVLGHEHLQJXVHG
WRDGMXVWWKHD[HVDQGWRVHOH.WWKHGDWDWREHVKRZQDVIROORZV
6&$/(NH\V7KHNH\VWRWKHOHIWKDQGVLGHRIWKHGLVSOD\DUHXVHGWRVHWWKHXSSHUDQGORZHUOLPLWV
RIWKHYHUWL.DOD[LVLQLQ.UHPHQWVZLWKWKHWRSDQGXSSHUPLGGOH NH\VEHLQJ
XVHGIRUWKHXSSHU.XUYH&XUYHDQGWKHORZHUPLGGOHDQGERWWRP NH\VIRU
WKHORZHU.XUYH&XUYH3UHVVLQJERWKVLGHVRIRQHRIWKHNH\SDLUVVLPXOWDQHRXVO\
DXWRPDWL.DOO\VHWVWKHUHOHYDQWOLPLWWRPDW.KWKHUDQJHSUHVHQWLQWKHYLVLEOHVH.WLRQRI
WKHGLVSOD\HG.XUYH
$VLQVLQJOHJUDSKPRGHWKHUHLVQRID.LOLW\IRUDGMXVWLQJWKH[D[LVV.DOHZKL.K
DOZD\VVKRZVXSWRSRLQWV)XUWKHUPRUHERWKWKHXSSHUDQGORZHU.XUYHVDUH
VKRZQRYHUWKHVDPHUDQJHRISRLQWVLWLVQRWSRVVLEOHIRUH[DPSOHWRVKRZ&XUYH
IRUGDWDSRLQWVWRDQG&XUYHIRUSRLQWVWR
&XUYH6HOH.WLRQNH\V
7KHNH\VRQWKHWRSULJKWKDQGVLGHRIWKHGLVSOD\DUHXVHGWRVHOH.WWKH.XUYHWREH
VKRZQLQWKHXSSHUKDOIRIWKHGLVSOD\&XUYHIURPWKRVHVWRUHGLQWKH.XUYHEXIIHU
7KHORZHUPLGGOHULJKWKDQGNH\VSHUIRUPDQHTXLYDOHQWIXQ.WLRQIRU&XUYHZKL.K
LVVKRZQLQWKHORZHUKDOIRIWKHGLVSOD\$OO.XUYHVWKDW.DQEHVWRUHGPD\EHVHOH.WHG
IRUGLVSOD\H[.HSWIRU(9(17DQGWKH.XUYHUH.RUGLQJLQVWUXPHQWVHQVLWLYLW\VHWWLQJV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 93/217
&KDSWHU)52173$1(/23(5$7,21
67$5767233$86(&217NH\V
,QWKHVLQJOHJUDSKGLVSOD\PRGHD.TXLVLWLRQWRWKH.XUYHEXIIHUDQGKHQ.HGLVSOD\RI
GDWD.DQEHLQLWLDWHGXVLQJWKH6WDUWRU/RRS NH\V7KH6WDUWNH\VVWDUW
D.TXLVLWLRQLQWKHRQHVKRWPRGH7KLV.DXVHVGDWDWREHD.TXLUHGIRUWKHQXPEHURI
SRLQWVVSH.LILHGE\WKH.XUYHOHQJWK.RQWUROLQWKH&XUYH%XIIHUPHQXDQGRQ.H
.RPSOHWHD.TXLVLWLRQ.HDVHV'XULQJGDWDD.TXLVLWLRQWKH.RQWURONH\DQQRWDWLRQ
.KDQJHVWR3DXVHLISUHVVHGDJDLQD.TXLVLWLRQZLOOSDXVHDWWKH.XUUHQWGDWDSRLQWDQGWKHDQQRWDWLRQ.KDQJHVDJDLQWR&RQW&RQWLQXH,IWKHNH\LVSUHVVHGDJDLQ
D.TXLVLWLRQ.RQWLQXHVIURPWKHSUHVHQWGDWDSRLQW
7KH/RRSNH\VDOVRVWDUWGDWDD.TXLVLWLRQEXWLQWKHORRSPRGHLQZKL.KWKH.XUYH
EXIIHUILOOVWR.DSD.LW\DQGLVWKHQVHTXHQWLDOO\RYHUZULWWHQE\QHZGDWD2Q.HWKLV
PRGHLVUXQQLQJWKH/RRS.RQWURONH\DQQRWDWLRQ.KDQJHVWR6WRSDQGSUHVVLQJWKH
DGMD.HQWNH\ZLOOWKHQVWRSD.TXLVLWLRQDWWKHSUHVHQWGDWDSRLQW
&85625NH\V
$VZLWKWKHVLQJOHJUDSKPRGHWKHERWWRPULJKWKDQG NH\VDQGWKH DQG
.XUVRUPRYHPHQWNH\V.RQWUROWKHSRVLWLRQRIWKH.XUVRU7KH.XUUHQWSRLQWQXPEHULVGLVSOD\HGLQWKHERWWRPULJKWKDQG.RUQHURIWKHGLVSOD\DQGWKHYDOXHRIWKH.XUYHVDW
WKHLULQWHUVH.WLRQZLWKWKH.XUVRUDSSHDUDERYHWKHUHOHYDQW&XUYHDQG&XUYHGDWD
W\SHV:KHUHDSSOL.DEOHYDOXHVDUHDOZD\VJLYHQDVDSHU.HQWDJHRIIXOOV.DOHVLQ.H
WKHUHLVQRID.LOLW\WRGLVSOD\WKHPLQIORDWLQJSRLQWIRUPDW,IWKH.XUVRULVPRYHGIXOO\
WRWKHOHIWWKHQWKHGLVSOD\HGGDWDV.UROOVWRWKHULJKWLQJURXSVRIWHQSRLQWVDOORZLQJ
HDUOLHUGDWDWREHVKRZQ
3UHVVLQJWKH3UHYLRXV0HQXNH\H[LWVWKH'RXEOH*UDSKPHQXDQGUHWXUQVWR0DLQ
0HQX
8VHU6HWWLQJV0HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH8VHU6HWWLQJVLWHP
D..HVVHVWKH8VHU6HWWLQJVPHQXZKL.KLVXVHGWRVDYHDQGUH.DOOXSWRHLJKW.RPSOHWH
LQVWUXPHQWVHWWLQJVIURPPHPRU\7KLVIHDWXUHLVSDUWL.XODUO\XVHIXOZKHQDQXPEHURI
XVHUVVKDUHDQLQVWUXPHQWVLQ.HLWDOORZVHD.KXVHUWRTXL.NO\UHVHWWKHLQVWUXPHQWWRD
NQRZQVHWWLQJ
:KHQWKHPHQXLVILUVWGLVSOD\HGWKH0HPRU\NH\VRQWKHGLVSOD\DUHQRWVKRZQ
3UHVVLQJWKH 6DYHVHWWLQJV5HVWRUHVHWWLQJVRU'HOHWHPHPRU\NH\V.DXVHV
6HOH.W0HPRU\1XPEHUDQGWKH0HPRU\NH\VWREHGLVSOD\HG)RUH[DPSOHZKHQWKH
6DYHVHWWLQJVNH\LVSUHVVHGWKHPHQX.KDQJHVWRWKDWVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 94/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH8VHU6HWWLQJV0HQX
6DYH6HWWLQJV
7RXVHWKHXVHUVHWWLQJVIHDWXUHSUR.HHGDVIROORZV
6DYLQJDQ,QVWUXPHQW6HWWLQJ
3UHVVWKH 6DYHVHWWLQJVNH\ZKL.KZLOO.DXVHWKH0HPRU\NH\VWRDSSHDU
3UHVVHLWKHUVLGHRIWKH NH\QH[WWRWKH0HPRU\QXPEHULQZKL.KWKHVHWWLQJV
DUHWREHVWRUHG$PHVVDJHZLOOEHGLVSOD\HGZKLOHWKHVHWWLQJVDUHVDYHG
5HVWRULQJDQ,QVWUXPHQW6HWWLQJ
3UHVVWKH 5HVWRUHVHWWLQJVNH\ZKL.KZLOO.DXVHWKH0HPRU\NH\VWRDSSHDU
3UHVVHLWKHUVLGHRIWKH NH\QH[WWRWKH0HPRU\QXPEHUIURPZKL.KWKHVHWWLQJV
DUHWREHUHVWRUHG$PHVVDJHZLOOEHGLVSOD\HGZKLOHWKHVHWWLQJVDUHUHVWRUHG
'HOHWLQJDQ,QVWUXPHQW6HWWLQJ
3UHVVWKH 'HOHWHPHPRU\NH\ZKL.KZLOO.DXVHWKH0HPRU\NH\VRUWKRVH
PHPRULHV.RQWDLQLQJVHWWLQJVLQIRUPDWLRQWRDSSHDU3UHVVHLWKHUVLGHRIWKH NH\
QH[WWRWKH0HPRU\QXPEHUDWZKL.KWKHVHWWLQJVDUHWREHGHOHWHG$PHVVDJHZLOOEH
GLVSOD\HGZKLOHWKLVKDSSHQV
,IWKHPHQXLVLQDGYHUWHQWO\D.WLYDWHGSUHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWURO
WR0DLQ0HQXZLWKRXWVDYLQJRUUHVWRULQJDQ\VHWWLQJV
$X[LOLDU\,20HQX
:KHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJWKH$X[LOLDU\,2NH\D..HVVHVWKH$X[LOLDU\,2PHQXZKL.KLVVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 95/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH$X[LOLDU\,20HQX
7KH$X[LOLDU\,2PHQXKDVILYH.RQWUROVZKL.KDUHXVHGWRVHWWKHYROWDJHVDSSHDULQJ
DWWKH'$&DQG'$&.RQQH.WRUVRQWKHUHDUSDQHODQG.RQILJXUHWKHDX[LOLDU\$'&
WULJJHUPRGHIRXUGLVSOD\VWRVKRZWKHYROWDJHVDWWKHUHDUSDQHO$'&WR$'&
LQSXWVDQGDNH\D..HVVDIXUWKHUVXEPHQX
7KHILYH.RQWUROVRSHUDWHDVIROORZV
$8;'$&DQG $8;'$&
7KHVHWZR.RQWUROVVHWWKHYROWDJHVDSSHDULQJDWWKH'$&DQG'$&.RQQH.WRUVRQ
WKHUHDUSDQHOWRDQ\YDOXHEHWZHHQ9DQG9LQP9LQ.UHPHQWV
$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
$'&75,**(502'(7KLVKDVHOHYHQSRVVLEOHVHWWLQJVDVIROORZV
PV+]$.RQYHUVLRQLVSHUIRUPHGRQ$'&$'&$'&DQG$'&HYHU\PVZLWK
WKHUHVXOWVEHLQJGLVSOD\HGRQWKHULJKWRIWKHV.UHHQDQGEHLQJDYDLODEOHYLDWKH
.RPSXWHULQWHUID.HV
(;7(51$/5HDU3DQHO$.RQYHUVLRQLVSHUIRUPHGRQ$'&$'&$'&DQG$'&RQUH.HLSWRID
ULVLQJHGJHDWWKH77/75,*.RQQH.WRURQWKHUHDUSDQHO7KHPD[LPXPWULJJHU
UDWHLV+]7KHUHVXOWVDUHGLVSOD\HGRQWKHULJKWRIWKHV.UHHQDQGDUHDYDLODEOHYLDWKH.RPSXWHULQWHUID.HV
%8567$'&$EXUVWRI.RQYHUVLRQVDWN+]VSRLQWLVSHUIRUPHGRQ$'&RQO\HLWKHU
RQUH.HLSWRIWKH7$'&.RPSXWHU.RPPDQGRUZKHQWKH7ULJJHU%XUVW0RGHNH\
LVSUHVVHG7KHUHVXOWVDUHVWRUHGWRWKH.XUYHEXIIHUZLWKWKHQXPEHURI
.RQYHUVLRQVEHLQJVHWE\WKH.XUYHOHQJWK.RQWURORQWKH&XUYH%XIIHUPHQXVHH
VH.WLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 96/217
&KDSWHU)52173$1(/23(5$7,21
%8567$'&$EXUVWRI.RQYHUVLRQVDWH[D.WO\VSRLQWDSSUR[LPDWHO\N+]LV
SHUIRUPHGRQERWK$'&DQG$'&HLWKHURQUH.HLSWRIWKH7$'&.RPSXWHU
.RPPDQGRUZKHQWKH7ULJJHU%XUVW0RGHNH\LVSUHVVHG7KHUHVXOWVDUHVWRUHGWR
WKH.XUYHEXIIHUZLWKWKHQXPEHURI.RQYHUVLRQVEHLQJVHWE\WKH.XUYHOHQJWK
.RQWURORQWKH&XUYH%XIIHUPHQXVHHVH.WLRQ
%8567$'&977KLVLVWKHVDPHDVWKH%8567$'&PRGHH[.HSWWKDWWKHVDPSOLQJUDWHPD\EH
VHWXVLQJWKH7LPH3RLQW.RQWURODQGWKDWWKH.RPSXWHU.RPPDQGWRLQLWLDWH
D.TXLVLWLRQLV7$'&
%8567$'&977KLVLVWKHVDPHDVWKH%8567$'&PRGHH[.HSWWKDWWKHVDPSOLQJUDWH
PD\EHVHWXVLQJWKH7LPH3RLQW.RQWURODQGWKDWWKH.RPSXWHU.RPPDQGWRLQLWLDWH
D.TXLVLWLRQLV7$'&
%8567$'&537KLVLVWKHVDPHDVWKH%8567$'&PRGHH[.HSWWKDWD.TXLVLWLRQLVLQLWLDWHGRQ
UH.HLSWRIDULVLQJHGJHDWWKH77/75,*.RQQH.WRURQWKHUHDUSDQHO
%8567$'&537KLVLVWKHVDPHDVWKH%8567$'&PRGHH[.HSWWKDWD.TXLVLWLRQLV
LQLWLDWHGRQUH.HLSWRIDULVLQJHGJHDWWKH77/75,*.RQQH.WRURQWKHUHDUSDQHO
%8567$'&53977KLVLVWKHVDPHDVWKH%8567$'&7PRGHH[.HSWWKDWD.TXLVLWLRQLV
LQLWLDWHGRQUH.HLSWRIDULVLQJHGJHDWWKH77/75,*.RQQH.WRURQWKHUHDUSDQHO
%8567$'&53977KLVLVWKHVDPHDVWKH%8567$'&7PRGHH[.HSWWKDWD.TXLVLWLRQLV
LQLWLDWHGRQUH.HLSWRIDULVLQJHGJHDWWKH77/75,*.RQQH.WRURQWKHUHDUSDQHO
(;7(51$/53$.RQYHUVLRQLVSHUIRUPHGRQ$'&$'&DQG$'&RQUH.HLSWRIDULVLQJHGJH
DWWKH77/75,*.RQQH.WRURQWKHUHDUSDQHO7KHPD[LPXPWULJJHUUDWHLV
+]7KHUHVXOWVDUHGLVSOD\HGRQWKHULJKWRIWKHGLVSOD\DQGDUHDYDLODEOHYLD
WKH.RPSXWHULQWHUID.HV
127(:KHQDQ\RIWKHEXUVWD.TXLVLWLRQPRGHVDUHVHOH.WHGWKHLQVWUXPHQW
DXWRPDWL.DOO\.KDQJHVWKH.XUYHVVHOH.WHGIRUVWRUDJHDVVKRZQRQWKH&XUYH 6HOH.WPHQXVH.WLRQWREHHLWKHU$'&RU$'&DQG$'&
75,**(5%856702'(:KHQRQHRIWKHWULJJHUHGEXUVWPRGHVLVVHOH.WHGWKLV.RQWUROLVD.WLYHDQGLVVKRZQ
LQEULJKWWH[W3UHVVWKHNH\DGMD.HQWWRLWWRWULJJHUGDWDD.TXLVLWLRQ
7,0(32,17:KHQRQHRIWKHWLPHGEXUVWPRGHVLVVHOH.WHGWKHWLPHSHUSRLQW.RQWUROLVD.WLYHDQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 97/217
&KDSWHU)52173$1(/23(5$7,21
LVVKRZQLQEULJKWWH[W7KLV.DQEHVHWWRDQ\YDOXHEHWZHHQV$'&RQO\RU
V$'&DQGDQGPVLQVLQ.UHPHQWV
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
'LJLWDO3RUW0HQX:KHQWKH$X[LOLDU\,2PHQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH'LJLWDO3RUW
LWHPD..HVVHVWKH'LJLWDO3RUWPHQXVKRZQLQILJXUH
)LJXUH'LJLWDO3RUW0HQX
7KH'LJLWDO3RUWPHQXDOORZVWKHRSHUDWLQJPRGHRIHD.KRIWKHHLJKWSLQVRIWKH
',*,7$/,2.RQQH.WRURQWKHUHDUSDQHOWREHVHWDQGLWVORJL.VWDWXVWREHVHWDQGUHDG7KLVSRUWPD\EHXVHGIRU.RQWUROOLQJRUUHDGLQJWKHVWDWXVRIH[WHUQDOHTXLSPHQW
IRUH[DPSOHWKHVZLW.KLQJRIKHDWHUVRUDWWHQXDWRUVYLDDVXLWDEOHXVHUVXSSOLHG
H[WHUQDOLQWHUID.H.LU.XLW
(D.KRIWKHHLJKWSLQVLV.RQILJXUHGDVDQLQSXWRURXWSXWE\WKH%LWGLUH.WLRQGLJLWV
ZKHQWKHGLJLWLVDWKH.RUUHVSRQGLQJELWLVDQLQSXWZKHQLWLVLWLVDQRXWSXW
)RUWKRVHELWV.RQILJXUHGDVRXWSXWVWKH2XWSXWYDOXHGLJLWVGHILQHZKHWKHUWKH\DUH
KLJKYDOXHRUORZYDOXH
7R.KDQJHDJLYHQELWXVHWKH DQG WRPRYHWKHXQGHUV.RUHB.XUVRU
XQWLOLWLVXQGHUWKHGLJLWWREH.KDQJHG6HWWKHUHTXLUHVWDWXVHLWKHURUE\XVLQJ
WKHQXPHUL.NH\V
'(&,0$/2873877KLV.RQWURORIIHUVDQDOWHUQDWLYHZD\RI.KDQJLQJWKHRXWSXWYDOXH7KHQXPEHULVWKH
GH.LPDOHTXLYDOHQWRIWKHGLVSOD\HGRXWSXWYDOXHELWSDWWHUQDQG.RQVHTXHQWO\.DQEH
VHWWRDQ\QXPEHUEHWZHHQDOOELWVDWORJL.DQGDOOELWVDWORJL.
'(&,0$/,13877KLVGLVSOD\VWKH.XUUHQWORJL.VWDWHRIDOOHLJKWELWVUHJDUGOHVVRIZKHWKHUWKH\DUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 98/217
&KDSWHU)52173$1(/23(5$7,21
LQSXWVRURXWSXWV7KHQXPEHUVKRZQLVWKHGH.LPDOHTXLYDOHQWRIWKHELWYDOXHDQG
.RQVHTXHQWO\.DQUDQJHEHWZHHQDOOELWVDWORJL.DQGDOOELWVDWORJL.
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH$X[LOLDU\,2PHQX
7KLV.RPSOHWHVWKHGHV.ULSWLRQRIWKHVLQJOHUHIHUHQ.HPRGHPHQXV
0HQX'HV.ULSWLRQV9LUWXDO5HIHUHQ.H0RGH
9LUWXDO5HIHUHQ.H0HQXV
7KHYLUWXDOUHIHUHQ.HPRGHLVYHU\VLPLODUWRWKHVLQJOHUHIHUHQ.HPRGHZLWKLQWHUQDO
UHIHUHQ.HDQGLVWKHVLPSOHVWRIWKHWKUHHDGGLWLRQDOPRGHVRIRSHUDWLRQ
127(7KLVPRGHLVRQO\VXLWDEOHIRUVLJQDOVDWIUHTXHQ.LHVEHWZHHQ+]DQG
0+]
7KHPRGHLVD..HVVHGYLDDVXEPHQXRIWKH&RQILJXUDWLRQPHQXDVVKRZQLQ
ILJXUH1RWHWKDWDVZLWKWKHPDLQPHQXVWUX.WXUHVKRZQLQILJXUHLWLV
SRVVLEOHWRUHWXUQWRWKH0DLQ'LVSOD\IURPDQ\PHQXE\SUHVVLQJWKH3UHYLRXV0HQX
NH\EXWWKLVKDVEHHQRPLWWHGIURPILJXUHIRUWKHVDNHRI.ODULW\([.HSWDV
GLV.XVVHGLQWKLVDQGWKHIROORZLQJVH.WLRQVWKHUHPDLQGHURIWKHLQVWUXPHQW.RQWURO
DQGGLVSOD\PHQXVRSHUDWHLQWKHVDPHZD\DVLQVLQJOHUHIHUHQ.HPRGH
)LJXUH9LUWXDO5HIHUHQ.H0HQX6WUX.WXUH
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGDQGWKH9LUWXDO5HIHUHQ.HNH\LVSUHVVHG
WKH9LUWXDO5HIHUHQ.HPHQXVKRZQLQILJXUHZLOODSSHDU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 99/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH9LUWXDO5HIHUHQ.H0HQX
7KLVPHQXKDVVL[.RQWUROVDIIH.WLQJWKHYLUWXDOUHIHUHQ.HPRGHDVLQJOHGLVSOD\DQG
WZRNH\VWRHVWDEOLVKYLUWXDOOR.N7KHOHIWKDQGVLGHRIWKHGLVSOD\LVXVHGIRUWKH
VHPLDXWRPDWL.PHWKRGRIHVWDEOLVKLQJ9LUWXDO5HIHUHQ.HPRGHZLWKWKHULJKWKDQG
VLGHEHLQJXVHGIRUWKHPDQXDOPRGH
7KH.RQWUROVRSHUDWHDVIROORZV
6HPL$XWRPDWL.0HWKRG
67$57)5(48(1&<7KLV.RQWUROGHILQHVWKHVWDUWIUHTXHQ.\IURPZKL.KWKHLQVWUXPHQWZLOOEHJLQWRWU\WR
ILQGWKHDSSOLHGVLJQDO,WVKRXOGEHVHWWRDYDOXH.ORVHWREXWOHVVWKDQWKHH[SH.WHG
VLJQDOIUHTXHQ.\,IWKHVWDUWIUHTXHQ.\LVZLWKLQ+]RIWKHVLJQDOIUHTXHQ.\WKHQ
WKHUHLVQRQHHGWRVHWWKHVWRSIUHTXHQ.\.RQWURO$GMXVWLQJWKH6WDUW)UHTXHQ.\.RQWURODOVRVHWVWKHSUHVHQW2V.LOODWRU)UHTXHQ.\WRWKHVDPHYDOXH
6723)5(48(1&<7KLV.RQWUROGHILQHVWKHVWRSIUHTXHQ.\DWZKL.KWKHLQVWUXPHQWDEDQGRQVLWVVHDU.KIRU
WKHVLJQDODQGVKRXOGEHVHWWRDYDOXHJUHDWHUWKDQWKHH[SH.WHGVLJQDOIUHTXHQ.\,I
WKHVWDUWIUHTXHQ.\LVZLWKLQ+]RIWKHVLJQDOIUHTXHQ.\WKHQWKHUHLVQRQHHGWRVHW
WKLV.RQWURO
67(36,=(7KLV.RQWUROGHILQHVWKHIUHTXHQ.\VWHSVL]HXVHGGXULQJWKHDXWRPDWL.VHDU.K
7,0(67(37KLV.RQWUROGHILQHVWKHWLPHSHUSRLQWZLWKLQWKHDXWRPDWL.VHDU.K
67$57$8726($5&+3UHVVLQJWKH6WDUW$XWR6HDU.KNH\VWDUWVWKHLQWHUQDORV.LOODWRUDWWKHGHILQHGVWDUW
IUHTXHQ.\DQGLQ.UHDVHVLWDWDUDWHRI+]SHUVH.RQG,IWKHLQVWUXPHQWGHWH.WVD
VLJQDOJUHDWHUWKDQRIIXOOV.DOHWKHQWKHVHDU.KVWRSVWKHXQLWOR.NVRQWRWKDW
VLJQDODQGWKH0DLQ'LVSOD\9LUWXDO5HIHUHQ.H0RGHDSSHDUVDVVKRZQLQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 100/217
&KDSWHU)52173$1(/23(5$7,21
ILJXUH
0DQXDO6HWXS
,IWKHVHPLDXWRPDWL.VHWXSPHWKRGGRHVQRWZRUNEH.DXVHWKHVLJQDOUHTXLUHVDWLPH
.RQVWDQWORQJHUWKDQPVWKHQWKHLQLWLDOVHDU.K.DQEHSHUIRUPHGPDQXDOO\7KLV
.DQEHGRQHXVLQJWKH.RQWUROVRQWKHULJKWKDQGVLGHRIWKHGLVSOD\DQGWKH6WDUW
)UHTXHQ.\.RQWURORQWKHOHIWKDQGVLGH
7KH.RQWUROVRSHUDWHDVIROORZV
7,0(&2167$177KLV.RQWUROVHWVWKHLQVWUXPHQWVRXWSXWWLPH.RQVWDQW
6(16,7,9,7<7KLV.RQWUROVKRXOGEHVHWVRWKDWWKHDPSOLWXGHRIWKHH[SH.WHGVLJQDOZLOOEHDWOHDVW
RIIXOOV.DOH)RUH[DPSOHLIWKHVLJQDOLVH[SH.WHGWREHDERXW9WKHQVHWWKH
IXOOV.DOHVHQVLWLYLW\WREHHLWKHU9RU9
127(,IWKHIXOOV.DOHVHQVLWLYLW\LVVHWVRWKDWWKHVLJQDOLVOHVVWKDQIXOO
V.DOHWKHQLWZLOOQRWEHIRXQG
67$57)5(48(1&<2Q.HWKH7LPH&RQVWDQWDQG6HQVLWLYLW\&RQWUROVKDYHEHHQVHWWRVXLWDEOHYDOXHVWKH
6WDUW)UHTXHQ.\.RQWUROVKRXOGEHVORZO\DGMXVWHGIURPEHORZWKHH[SH.WHGVLJQDO
IUHTXHQ.\XQWLOWKH0DJQLWXGHGLVSOD\UHDGVLQH[.HVVRI7KHHDVLHVWZD\WRGR
WKLVLVE\XVLQJWKHD.WLYH.XUVRU.RQWUROWRSOD.HD.XUVRUXQGHUDQDSSURSULDWHGLJLWRI
WKH6WDUW)UHTXHQ.\GLVSOD\DQGWKHQXVLQJWKH .RQWUROWRDGMXVWWKHIUHTXHQ.\
0$*1,78'(
7KLVGLVSOD\VWKHSUHVHQWVLJQDOPDJQLWXGHDVDSHU.HQWDJHRIWKHVHWIXOOV.DOHVHQVLWLYLW\
9,578$//2&. :KHQWKHLQVWUXPHQWVLQWHUQDORV.LOODWRUDQGIXOOV.DOHVHQVLWLYLW\DUHVHWVRWKDWWKH
VLJQDOLVPHDVXUHGDVRIIXOOV.DOHRUJUHDWHUWKHQSUHVVLQJWKLVNH\HQWHUVWKH
YLUWXDOUHIHUHQ.HPRGHDQGWKH0DLQ'LVSOD\9LUWXDO5HIHUHQ.H0RGHDSSHDUVDV
VKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 101/217
&KDSWHU)52173$1(/23(5$7,21
0DLQ'LVSOD\9LUWXDO5HIHUHQ.H0RGH
)LJXUH0DLQ'LVSOD\9LUWXDO5HIHUHQ.H0RGH
,QYLUWXDOUHIHUHQ.HPRGHWKHLQVWUXPHQWRSHUDWHVH[D.WO\DVLQVLQJOHUHIHUHQ.HPRGH
ZLWKWKHIROORZLQJH[.HSWLRQV
7KH0DLQ'LVSOD\DOZD\VVKRZVWKHDQQRWDWLRQ9LUWXDO5HIHUHQ.H0RGHLQWKH
ERWWRPULJKWKDQGVH.WLRQRIWKHGLVSOD\DVDZDUQLQJWRWKHXVHUWKDWWKLVPRGHLV
EHLQJXVHG
$OWKRXJKWKHXSSHUWKUHHGLVSOD\SRVLWLRQV.DQEHUH.RQILJXUHGWRGLVSOD\PDJQLWXGH
DQGRUSKDVHLQIRUPDWLRQQHLWKHURIWKHVHLVUHOHYDQWVLQ.HWKHUHLVQRUHIHUHQ.HVLJQDO
WRZKL.KWKHSKDVH.DQEHUHODWHGDQGWKHPDJQLWXGHHTXDOVWKH;.KDQQHORXWSXW
6LPLODUO\.RQWUROVDIIH.WLQJWKHLQVWUXPHQWVUHIHUHQ.HSKDVHVX.KDV5HI3KDVHDQG5HI3KDVHKDYHQRHIIH.W
+DUPRQL.VJUHDWHUWKDQXQLW\VKRXOGQRWEHXVHGLQYLUWXDOUHIHUHQ.HPRGHVLQ.HWKH
KDUPRQL.QXPEHUUHODWHVWRWKHUHIHUHQ.HIUHTXHQ.\1HYHUWKHOHVVGHWH.WLRQDW
KDUPRQL.VRIWKHVLJQDOIUHTXHQ.\LVSRVVLEOHE\VHDU.KLQJIRUWKHUHTXLUHGKDUPRQL.
IUHTXHQ.\)RUH[DPSOHLIWKHVLJQDOIUHTXHQ.\LVN+]DQGDPHDVXUHPHQWDWWKH
VH.RQGKDUPRQL.LVUHTXLUHGVHWWKHKDUPRQL.WRVWDQGVHDU.KIRUDVLJQDODWN+]
7KHVLJQDOVDWWKH26&287.RQQH.WRURQWKHIURQWSDQHODQGWKH5()021
.RQQH.WRURQWKHUHDUSDQHODUHDWWKHYLUWXDOUHIHUHQ.HIUHTXHQ.\
6LQ.HQRQHRIWKH.RQWUROVRQWKH5HIHUHQ.HPHQXDUHUHOHYDQWLWLVQRWSRVVLEOHWRD..HVVLW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 102/217
&KDSWHU)52173$1(/23(5$7,21
&RQILJXUDWLRQ0HQX9LUWXDO5HIHUHQ.H0RGH
)LJXUH&RQILJXUDWLRQ0HQX9LUWXDO5HIHUHQ.H0RGH
,QYLUWXDOUHIHUHQ.HPRGHWKH.KRL.HVDYDLODEOHRQWKH&RQILJXUDWLRQPHQXDUHDV
VKRZQLQILJXUH7ROHDYHYLUWXDOUHIHUHQ.HPRGHDQGUHWXUQWRVLQJOHUHIHUHQ.H
PRGHSUHVVWKH([LW9LUWXDO5HIHUHQ.HNH\WRVZLW.KWRGXDOUHIHUHQ.HPRGHSUHVVWKH
'XDO5HIHUHQ.HNH\DQGWRVZLW.KWRGXDOKDUPRQL.PRGHSUHVVWKH'XDO5HIHUHQ.H
NH\7KHUHPDLQLQJ.RQWUROVLQ.OXGLQJWKHVXEPHQXVRSHUDWHDVDOUHDG\GHV.ULEHGLQ
VH.WLRQ
7KLV.RPSOHWHVWKHGHV.ULSWLRQRIWKHYLUWXDOUHIHUHQ.HPRGHPHQXV
0HQX'HV.ULSWLRQV'XDO5HIHUHQ.H0RGH
'XDO5HIHUHQ.H6HWXS0HQX
7KHGXDOUHIHUHQ.HPRGHDOORZVWKHPRGHOWRPHDVXUHVLPXOWDQHRXVO\VLJQDOV
DSSOLHGWRWKHVLJQDOLQSXWDWWZRGLIIHUHQWUHIHUHQ.HIUHTXHQ.LHV2QHUHIHUHQ.HPXVW
EHVXSSOLHGWRWKHH[WHUQDOUHIHUHQ.HLQSXWDQGWKHVH.RQGKDVWREHWKHLQWHUQDO
RV.LOODWRU
'XULQJGXDOUHIHUHQ.HPRGHRSHUDWLRQVRPHRIWKH.RQWURODQGGLVSOD\PHQXVGLIIHU
IURPWKRVHXVHGIRUVLQJOHUHIHUHQ.HPRGHVRWKHVHDUHGHV.ULEHGLQWKHIROORZLQJ
VH.WLRQV7KHUHPDLQLQJPHQXVRSHUDWHLQWKHVDPHZD\DVLQVLQJOHUHIHUHQ.HPRGHDV
DOUHDG\GHV.ULEHGLQVH.WLRQ
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGSUHVVLQJWKH'XDO5HIHUHQ.HNH\D.WLYDWHV
WKHGXDOUHIHUHQ.HPRGH:KLOHWKHLQVWUXPHQWVZLW.KHVWRWKLVPRGHWKH'XDO
5HIHUHQ.H6HWXSPHQXLVGLVSOD\HGDVVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 103/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH'XDOUHIHUHQ.H6HWXS0HQX
'XDO5HIHUHQ.H0DLQ'LVSOD\2Q.HGXDOUHIHUHQ.HKDVEHHQD.WLYDWHGWKH0DLQ'LVSOD\'XDOUHIHUHQ.H0RGHLV
GLVSOD\HGDVVKRZQLQILJXUH
)LJXUH0DLQ'LVSOD\'XDOUHIHUHQ.H0RGH
,QGXDOUHIHUHQ.HPRGH.RQWUROVDQGGLVSOD\VUHODWLQJWRWKHH[WHUQDOUHIHUHQ.HVLJQDO
.DUU\WKHVXIIL[DQGWKRVHIRUWKHLQWHUQDOUHIHUHQ.HWKHVXIIL[+HQ.HIRU
H[DPSOHLIDQH[WHUQDOUHIHUHQ.HIUHTXHQ.\RIN+]LVDSSOLHGDQGWKHLQVWUXPHQWVLQWHUQDORV.LOODWRULVVHWWRN+]WKHXQLWZLOOPHDVXUHVLJQDOVDWERWKN+]DQG
N+]7KH6HQVLWLYLW\7LPH&RQVWDQWDQG5HI3KDVH.RQWUROVZLOODIIH.WWKH
VLJQDOEHLQJPHDVXUHGDWN+]ZKLOHWKH6HQVLWLYLW\7LPH&RQVWDQWDQG5HI
3KDVH.RQWUROVZLOODIIH.WWKHVLJQDOEHLQJPHDVXUHGDWN+]
7KHUDQJHRI.RQWUROVWKDW.DQEHSOD.HGRQWKHOHIWKDQGVLGHRIWKH0DLQ'LVSOD\
XVLQJWKH6(/(&7&21752/NH\LVWKHUHIRUHH[WHQGHGWRLQ.OXGHWKRVHUHODWLQJWR
ERWKUHIHUHQ.HVLJQDOVDVIROORZV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 104/217
&KDSWHU)52173$1(/23(5$7,21
6(16,7,9,7<
6(16,7,9,7<:KHQVHWWRYROWDJHLQSXWPRGHXVLQJWKH6LJQDO&KDQQHOPHQXWKHLQVWUXPHQWVIXOO
V.DOHYROWDJHVHQVLWLYLW\PD\EHVHWWRDQ\YDOXHEHWZHHQQ9DQG9LQD
VHTXHQ.H
:KHQVHWWR.XUUHQWLQSXWPRGHXVLQJWKH6LJQDO&KDQQHOPHQXWKHLQVWUXPHQWVIXOOV.DOH.XUUHQWVHQVLWLYLW\PD\EHVHWWRDQ\YDOXHEHWZHHQS$DQG$ZLGH
EDQGZLGWKPRGHI$DQG$QRUPDOPRGHRUI$DQGQ$ORZQRLVH
PRGHLQDVHTXHQ.H
7KHQXPEHUUHSRUWHGDIWHUWKHOHWWHUV'5LVWKHLQVWUXPHQWV'\QDPL.5HVHUYH
H[SUHVVHGLQGH.LEHOVDV.DO.XODWHGE\WKHIROORZLQJHTXDWLRQ
'5 6(1
$&*DLQLQG%= ×
−
ORJ
([DPSOH
,I$&*DLQG%DQG6(1P9WKHQ
ORJ'5 −
×=
'5G%
7,0(&2167$17
7,0(&2167$17
7KHWLPH.RQVWDQWRIWKHRXWSXWILOWHUVLVVHWXVLQJWKLV.RQWUROLQWKHUDQJHVWRNVLQDVHTXHQ.H6HWWLQJVRIPVDQGEHORZUHVWUL.WWKH.KRL.HRI
LQVWUXPHQWRXWSXWVWR;;<<DQG0DJQLWXGH0DJQLWXGH
5()3+$6(
5()3+$6(7KHVH.RQWUROVDOORZVWKHUHIHUHQ.HSKDVHRIHD.KGHWH.WLRQ.KDQQHOWREHDGMXVWHGRYHU
WKHUDQJHWRLQPVWHSV$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU
$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
5()3+$6(
5()3+$6(7KHVH.RQWUROVDOORZWKHUHOHYDQWUHIHUHQ.HSKDVHWREHDGMXVWHGLQVWHSVRI
;2))6(7<2))6(7;2))6(7DQG<2))6(77KHVHDUHWKHPDQXDO;;.KDQQHODQG<<.KDQQHORXWSXWRIIVHW.RQWUROV7KH
RIIVHWOHYHOVVHWE\WKHVH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQG
LQVWHSVDUHDGGHGWRWKH;;<RU<.KDQQHORXWSXWVZKHQWKHUHOHYDQW
.KDQQHORIIVHWVDUHVZLW.KHGRQXVLQJWKH2XWSXW&KDQQHOVPHQX$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 105/217
&KDSWHU)52173$1(/23(5$7,21
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQ1RWHWKDWWKH$XWR
2IIVHWIXQ.WLRQDXWRPDWL.DOO\VZLW.KHVRQDOORXWSXWRIIVHWV
5()+$5021,&7KLV.RQWUROVHWVWKHKDUPRQL.RIWKHDSSOLHGH[WHUQDOUHIHUHQ.HIUHTXHQ.\DWZKL.KWKH
OR.NLQDPSOLILHUVUHIHUHQ.H.KDQQHORSHUDWHVLQWKHUDQJHVWIXQGDPHQWDOPRGH
WRQG
5()+$5021,&7KLV.RQWUROVHWVWKHKDUPRQL.RIWKHLQWHUQDOUHIHUHQ.HIUHTXHQ.\DWZKL.KWKHOR.NLQ
DPSOLILHUVUHIHUHQ.H.KDQQHORSHUDWHVLQWKHUDQJHVWIXQGDPHQWDOPRGHWR
QG
)RUH[DPSOHLI5HI+DUPRQL.LVVHWWRUG5HI+DUPRQL.LVVHWWRVWDQH[WHUQDO
UHIHUHQ.HVLJQDORIN+]LVDSSOLHGDQGWKHLQWHUQDORV.LOODWRUVHWWRN+]WKH
LQVWUXPHQWZLOOPHDVXUHVLJQDOVDWLWVLQSXWDWIUHTXHQ.LHVRIERWKN+]DQGN+]
$8;'$&DQG $8;'$&7KHVHWZR.RQWUROVVHWWKHYROWDJHDSSHDULQJDWWKH'$&DQG'$&RXWSXW
.RQQH.WRUVRQWKHUHDUSDQHOWRDQ\YDOXHEHWZHHQ9DQG9ZLWKDUHVROXWLRQ
RIP9$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
26&)5(48(1&<7KHIUHTXHQ.\RIWKHLQVWUXPHQWVLQWHUQDORV.LOODWRUXVHGIRUWKHUHIHUHQ.HGHWH.WLRQ
.KDQQHOPD\EHVHWXVLQJWKLV.RQWUROWRDQ\YDOXHEHWZHHQ+]DQG0+]
ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU
.RQWUROVVHHVH.WLRQ
26&$03/,78'(7KLV.RQWUROPD\EHVHWWRDQ\YDOXHEHWZHHQP9DQG9UPV$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
6LQ.HWKHLQVWUXPHQWLVQRZJHQHUDWLQJWZRVHWVRIRXWSXWVRQHIRUWKHH[WHUQDODQG
RQHIRUWKHLQWHUQDOUHIHUHQ.HVLJQDOVWKHUHDUHPRUHRXWSXWGLVSOD\.KRL.HVLQWKLV
PRGHWKDQLQVLQJOHUHIHUHQ.HPRGHDQGWKHVHDUHOLVWHGLQWDEOH7KHRXWSXWV
.RUUHVSRQGLQJWRWKHWZRUHIHUHQ.HVDUHLGHQWLILHGE\WKHVXIIL.HVDQG
UHVSH.WLYHO\
2XWSXW 'HV.ULSWLRQ
7LWOH1XPHUL.'LVSOD\VRQO\
5 5HVXOWDQW0DJQLWXGHRXWSXWUHIHUHQ.H)6
5 5HVXOWDQW0DJQLWXGHRXWSXWUHIHUHQ.H)6
1 1RLVHRXWSXWDERXWUHIHUHQ.H)6
1 1RLVHRXWSXWDERXWUHIHUHQ.H)6
6 3KDVHRXWSXWUHIHUHQ.HLQGHJUHHV
6 3KDVHRXWSXWUHIHUHQ.HLQGHJUHHV
; ;.KDQQHORXWSXWUHIHUHQ.H)6
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 106/217
&KDSWHU)52173$1(/23(5$7,21
1XPHUL.'LVSOD\VRQO\.RQWLQXHG
; ;.KDQQHORXWSXWUHIHUHQ.H)6
< <.KDQQHORXWSXWUHIHUHQ.H)6
< <.KDQQHORXWSXWUHIHUHQ.H)6
5 5HVXOWDQW0DJQLWXGHRXWSXWUHIHUHQ.HLQYROWVRUDPSV
5 5HVXOWDQW0DJQLWXGHRXWSXWUHIHUHQ.HLQYROWVRUDPSV
1XPHUL.DQG%DU*UDSK'LVSOD\V
; ;.KDQQHORXWSXWUHIHUHQ.HLQYROWVRUDPSV
; ;.KDQQHORXWSXWUHIHUHQ.HLQYROWVRUDPSV
< <.KDQQHORXWSXWUHIHUHQ.HLQYROWVRUDPSV
< <.KDQQHORXWSXWUHIHUHQ.HLQYROWVRUDPSV
1 1RLVHRXWSXWDERXWUHIHUHQ.HLQYROWVRUDPSVSHUURRWKHUW]
1 1RLVHRXWSXWDERXWUHIHUHQ.HLQYROWVRUDPSVSHUURRWKHUW]
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
%DU*UDSK'LVSOD\VRQO\
0$* 5HVXOWDQW0DJQLWXGHRXWSXWUHIHUHQ.HLQYROWVRUDPSV
0$* 5HVXOWDQW0DJQLWXGHRXWSXWUHIHUHQ.HLQYROWVRUDPSV
3+$ 3KDVHRXWSXWUHIHUHQ.HLQGHJUHHV
3+$ 3KDVHRXWSXWUHIHUHQ.HLQGHJUHHV
7DEOH2XWSXW'LVSOD\&KRL.HV'XDO5HIHUHQ.H0RGH
7KHDGGLWLRQDORXWSXWVPD\EHVWRUHGWRWKH.XUYHEXIIHUEXWRQO\ZKHQWKH.XUYH
VHOH.WLRQLVPDGHYLDWKH.RPSXWHULQWHUID.H7KH&XUYH6HOH.WPHQXRQO\DOORZVVHOH.WLRQRIWKHVDPHVL[WHHQGDWDW\SHVDVLQVLQJOHUHIHUHQ.HPRGH
:KHQLQGXDOUHIHUHQ.HPRGHWKHXVHUGHILQHGHTXDWLRQVVSH.LILHGRQWKH2XWSXW
(TXDWLRQVPHQXDOORZWKHVHOH.WLRQRIWKHDGGLWLRQDORXWSXWVDVYDULDEOHV)RU
H[DPSOHLWLVSRVVLEOHWR.DO.XODWHDYDOXHSURSRUWLRQDOWRWKHUDWLRRIWKH;.KDQQHO
RXWSXWWRWKDWRIWKH; .KDQQHORXWSXW:LWKVXLWDEOHV.DOLQJWKLV.DQEHRXWSXWWRWKH
&+RU&+.RQQH.WRUVRQWKHUHDUSDQHODVDQDQDORJYROWDJH
1DWXUDOO\WKHVLJQDOVDWWKHWZRIUHTXHQ.LHVWKDWDUHEHLQJPHDVXUHGVKDUHD.RPPRQ
VLJQDOSDWKDQGKHQ.H.RQWUROVDIIH.WLQJWKHVLJQDO.KDQQHOVX.KDV$&*DLQDQGWKH
OLQHILOWHU.RQWUROVDSSO\WRERWKUHIHUHQ.HIUHTXHQ.LHV$OWKRXJKWKHIXOOV.DOHVHQVLWLYLW\VHWWLQJ.DQEHLQGHSHQGHQWO\VHWIRUERWKUHIHUHQ.HVWKHPD[LPXP$&*DLQ
WKDWLVSRVVLEOHLVGHILQHGE\WKHOHDVWVHQVLWLYHVHWWLQJRIWKHWZR
,QVWDQGDUGLQVWUXPHQWVWKHPD[LPXPGHWH.WLRQIUHTXHQ.\IRUHLWKHUUHJIHUHQ.HRU
UHIHUHQ.HLVN+]XQLWVILWWHGZLWKWKHRSWLRQDOORZRSHUDWLRQWRN+]
DQGWKRVHZLWKWKHRSWLRQDOORZRSHUDWLRQWR0+]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 107/217
&KDSWHU)52173$1(/23(5$7,21
5HIHUHQ.H&KDQQHO0HQX
,QGXDOUHIHUHQ.HPRGHWKHUHIHUHQ.H.KDQQHOLV.RQWUROOHGE\WKH'XDO5HIHUHQ.H
&KDQQHOPHQXZKL.KGLIIHUVIURPWKH5HIHUHQ.H&KDQQHOPHQXXVHGLQWKHRWKHUWKUHH
PRGHV,QDGGLWLRQ.RQWUROVDUHQHHGHGIRUWKH.RUUHVSRQGLQJRXWSXW.KDQQHOVDQGVR
WKH2XWSXW)LOWHUVDQG2XWSXW2IIVHWVXEPHQXVDOVR.KDQJH7KHUHODWLRQVKLSRIDOO
WKHVHPHQXVWR0DLQ0HQXLVVKRZQLQILJXUH1RWHWKDWDVZLWKWKHPDLQPHQXVWUX.WXUHVKRZQLQILJXUHLWLVSRVVLEOHWRUHWXUQWRWKH0DLQ'LVSOD\IURPDQ\
PHQXE\SUHVVLQJWKH3UHYLRXV0HQXNH\EXWWKLVKDVEHHQRPLWWHGIURPILJXUH
IRUWKHVDNHRI.ODULW\
)LJXUH'XDO5HIHUHQ.H0RGH0HQX6WUX.WXUH
,QGXDOUHIHUHQ.HPRGHSUHVVLQJDNH\DGMD.HQWWRWKH5HIHUHQ.H&KDQQHOLWHPRQ
0DLQ0HQXD..HVVHVWKH'XDO5HIHUHQ.H&KDQQHOPHQXVKRZQLQILJXUH
)LJXUH'XDO5HIHUHQ.H&KDQQHO0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 108/217
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 109/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH'XDO5HIHUHQ.H2XWSXW)LOWHUV0HQX
7KH'XDO5HIHUHQ.H2XWSXW)LOWHUVPHQXKDVILYH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV
RXWSXWORZSDVVILOWHUV&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJ
WKHDGMD.HQW NH\V
7KH.RQWUROVRSHUDWHDVIROORZV
7,0(&2167$17
7,0(&2167$177KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\.RQWUROVRIWKHVDPHQDPHDUHXVHG
WRVHWWKHWLPH.RQVWDQWRIHD.KRIWKHRXWSXWILOWHUV
6/23(
6/23(7KHUROORIIRIHD.KRIWKHRXWSXWVILOWHUV.DQEHVHWXVLQJWKLV.RQWUROWRHLWKHUG%
RUG%SHUR.WDYH
6<1&7,0(&2167$177KLV.RQWUROKDVWZRVHWWLQJVDVIROORZV
,QWKLVVHWWLQJZKL.KLVWKHQRUPDOPRGHWLPH.RQVWDQWVDUHQRWUHODWHGWRWKH
UHIHUHQ.HIUHTXHQ.\SHULRG
,QWKLVVHWWLQJWKHD.WXDOWLPH.RQVWDQWXVHGLV.KRVHQWREHVRPHPXOWLSOHRIWKH
UHIHUHQ.HIUHTXHQ.\SHULRGJLYLQJDPX.KPRUHVWDEOHRXWSXWDWORZIUHTXHQ.LHV
WKDQZRXOGRWKHUZLVHEHWKH.DVH1RWHWKDWGHSHQGLQJRQWKHUHIHUHQ.HIUHTXHQ.\
RXWSXWWLPH.RQVWDQWVVKRUWHUWKDQPV.DQQRWEHXVHG
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 110/217
&KDSWHU)52173$1(/23(5$7,21
2XWSXW2IIVHW5HI0HQX
,QGXDOUHIHUHQ.HPRGHZKHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWRWKH
2XWSXW2IIVHWLWHPD..HVVHVWKH2XWSXW2IIVHW5HIPHQXZKL.KLVVKRZQLQILJXUH
)LJXUH2XWSXW2IIVHW5HI0HQX
7KH2XWSXW2IIVHW5HIPHQXKDVWKUHH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV;.KDQQHO
DQG<.KDQQHORXWSXWVDQGDNH\WRD..HVVDIXUWKHUVXEPHQXZKL.KKDV
.RUUHVSRQGLQJ.RQWUROVIRUWKH;.KDQQHODQG<.KDQQHO&KDQJHVWRWKHVHWWLQJRI
WKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW NH\VZLWKWKH.XUUHQWO\D.WLYH
VHOH.WLRQEHLQJKLJKOLJKWHG
;2))6(7DQG<2))6(77KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\;2))6(7DQG<2))6(7.RQWUROVDOORZPDQXDODGMXVWPHQWRIWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
7KHRIIVHWOHYHOVHWE\WKH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQG
LQVWHSVLVDGGHGWRWKH;.KDQQHORU<.KDQQHORXWSXWZKHQWKH;
.KDQQHORU<.KDQQHORIIVHWLVVZLW.KHGRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU
$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQZKL.KDOVRVZLW.KHVRQ
ERWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
2))6(767$786
7KLV.RQWURODOORZVWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVVHWE\WKHDERYHOHYHO.RQWUROVWREHVZLW.KHGRQWRHLWKHURUERWKRXWSXWVRUWREHVZLW.KHGRII,W
WKHUHIRUHKDVIRXUVHWWLQJVDVIROORZV
121(%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRII
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 111/217
&KDSWHU)52173$1(/23(5$7,21
;7KH;.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
<7KH<.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
;<%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRQ
3UHVVLQJWKH2XWSXW2IIVHW5HINH\D..HVVWKH2XWSXW2IIVHW5HIPHQXDQG
SUHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
2XWSXW2IIVHW5HI0HQX
,QGXDOUHIHUHQ.HPRGHZKHQ2XWSXW2IIVHW5HI0HQXLVGLVSOD\HGSUHVVLQJWKH
2XWSXW2IIVHW5HI0HQXNH\D..HVVHVWKH2XWSXW2IIVHW5HIPHQXZKL.KLV
VKRZQLQILJXUH
)LJXUH2XWSXW2IIVHW5HI0HQX
7KH2XWSXW2IIVHW5HIPHQXKDVWKUHH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV;.KDQQHO
DQG<.KDQQHORXWSXWVDQGDNH\WRUHWXUQWRWKH2XWSXW2IIVHW5HIPHQX&KDQJHV
WRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW NH\VZLWKWKH
.XUUHQWO\D.WLYHVHOH.WLRQEHLQJKLJKOLJKWHG
;2))6(7DQG<2))6(77KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\;2))6(7DQG<2))6(7.RQWUROVDOORZPDQXDODGMXVWPHQWRIWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
7KHRIIVHWOHYHOVHWE\WKH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQG
LQVWHSVLVDGGHGWRWKH;.KDQQHORU<.KDQQHORXWSXWZKHQWKH;
.KDQQHORU<.KDQQHORIIVHWLVVZLW.KHGRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU
$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 112/217
&KDSWHU)52173$1(/23(5$7,21
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQZKL.KDOVRVZLW.KHVRQ
ERWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
2))6(767$7867KLV.RQWURODOORZVWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVVHWE\WKHDERYH
OHYHO.RQWUROVWREHVZLW.KHGRQWRHLWKHURUERWKRXWSXWVRUWREHVZLW.KHGRII,W
WKHUHIRUHKDVIRXUVHWWLQJVDVIROORZV
121(%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRII
;7KH;.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
<7KH<.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
;<%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRQ
3UHVVLQJWKH3UHYLRXV0HQXRU2XWSXW2IIVHW5HI0HQXNH\VUHWXUQV.RQWUROWRWKH
2XWSXW2IIVHW5HI0HQX
$XWR)XQ.WLRQV0HQX
,QGXDOUHIHUHQ.HPRGHSUHVVLQJDNH\DGMD.HQWWRWKH$XWR)XQ.WLRQVLWHPRQ0DLQ
0HQXD..HVVHVWKH$XWR)XQ.WLRQVPHQXVKRZQLQILJXUH
)LJXUH$XWR)XQ.WLRQV0HQX'XDO5HIHUHQ.H0RGH
7KLVPHQXLVYLUWXDOO\LGHQWL.DOWRWKHQRUPDOVLQJOHUHIHUHQ.HPRGH$XWR)XQ.WLRQV
PHQXH[.HSWWKDWWKHDQDGGLWLRQDONH\DSSHDUVLQWKHORZHUOHIWKDQG.RUQHUPDUNHG
5HI0HQXRU5HI0HQX(D.KSUHVVRIWKLVNH\WRJJOHVWKHGLVSOD\HGVHWRIDXWR
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 113/217
&KDSWHU)52173$1(/23(5$7,21
IXQ.WLRQ.RQWUROVEHWZHHQWKRVHDSSO\LQJWRUHIHUHQ.HDQGWKRVHDSSO\LQJWR
UHIHUHQ.H
1RWHWKDWRQ.HWKHVHIXQ.WLRQV.RPSOHWHWKH$XWR)XQ.WLRQVPHQXLVUHSOD.HGE\WKH
0DLQ'LVSOD\7KHUHDUHIRXUDXWRIXQ.WLRQVIRUHD.KRIWKHWZRUHIHUHQ.H.KDQQHOV
ZKL.KRSHUDWHH[D.WO\DVGHV.ULEHGIRUVLQJOHUHIHUHQ.HPRGHLQVH.WLRQ
3UHVVLQJDNH\DGMD.HQWWRWKH$XWR'HIDXOWLWHP.DUULHVRXWDQ$XWR'HIDXOWRSHUDWLRQ
DQGUHVHWVWKHLQVWUXPHQWWRVLQJOHUHIHUHQ.HPRGH
&RQILJXUDWLRQ0HQX'XDO5HIHUHQ.H0RGH
)LJXUH&RQILJXUDWLRQ0HQX'XDOUHIHUHQ.H0RGH
,QGXDOUHIHUHQ.HPRGHWKH'XDO5HIHUHQ.HNH\GLVSOD\HGRQWKH&RQILJXUDWLRQPHQXZKHQLQVLQJOHUHIHUHQ.HPRGHLVUHSOD.HGE\DNH\PDUNHG6LQJOH5HIHUHQ.HDVVKRZQ
LQILJXUH7ROHDYHGXDOUHIHUHQ.HPRGHDQGUHWXUQWRVLQJOHUHIHUHQ.HPRGHSUHVV
WKH6LQJOH5HIHUHQ.HNH\WRVZLW.KWRGXDOKDUPRQL.PRGHSUHVVWKH'XDO+DUPRQL.
NH\DQGWRVZLW.KWRYLUWXDOUHIHUHQ.HPRGHSUHVVWKH9LUWXDO5HIHUHQ.HNH\7KH
UHPDLQLQJ.RQWUROVRSHUDWHDVDOUHDG\GHV.ULEHGLQVH.WLRQH[.HSWWKDWWKH
$QDORJ2XWSXWVVXEPHQXLVVOLJKWO\GLIIHUHQWDVGLV.XVVHGLQWKHIROORZLQJVH.WLRQ
$QDORJ2XWSXWV0HQX'XDO5HIHUHQ.HDQG'XDO
+DUPRQL.0RGHV
:KHQRSHUDWLQJLQ'XDO5HIHUHQ.HRU'XDO+DUPRQL.PRGHVWKH.DQJHQHUDWHDQDORJRXWSXWVUHSUHVHQWLQJWKHLQSKDVH.RPSRQHQWVRIWKHWZRGHWH.WHGVLJQDOV
XSGDWHGDWDUDWHRI0+]PDNLQJLWSRVVLEOHWRXVHRXWSXWWLPH.RQVWDQWVLQWKH
UDQJHVWRV
$VZLWKWKHVLQJOHDQGYLUWXDOUHIHUHQ.HPRGHV.KDQJLQJWKHRXWSXWVVHOH.WHGIRU
.RQYHUVLRQWRDQDORJYROWDJHVPD\DIIH.WWKHUDWHDWZKL.KWKHVHRXWSXWVDUHXSGDWHG
DQGWKHUDQJHRIRXWSXWWLPH.RQVWDQWVDQGILOWHUVORSHVDYDLODEOH7KH$QDORJ2XWSXWV
PHQXLVXVHGWRVHOH.WWKHRXWSXWVWREH.RQYHUWHGZKL.KLQGXDOUHIHUHQ.HRUGXDO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 114/217
&KDSWHU)52173$1(/23(5$7,21
KDUPRQL.PRGHVDSSHDUVDVVKRZQLQILJXUHEHORZ
)LJXUH$QDORJ2XWSXWV0HQX1RUPDO2SHUDWLQJ0RGH
'XDO5HIHUHQ.H'XDO+DUPRQL.0RGHV
7KH$QDORJ2XWSXWVPHQXKDVWKUHH.RQWUROV.KDQJHVWRWKHVHWWLQJRIZKL.K.DQEH
PDGHE\XVLQJWKHDGMD.HQW NH\V
23(5$7,1*02'(7KLV.RQWUROGHWHUPLQHVWKHSRVLWLRQIURPZKL.KWKHDQDORJRXWSXWVDUHGHULYHGLQWKH
.LU.XLWVHHILJXUHDQGKHQ.HWKHUDWHDWZKL.KWKH\DUHXSGDWHG,WDOVRDIIH.WVWKH
DYDLODEOHRXWSXWILOWHUVORSHDQGWKHSHUPLWWHGUDQJHRIWLPH.RQVWDQWV,WKDVWZR
VHWWLQJVDVIROORZV
1250$/
,QWKLVVHWWLQJWKH&+DQG&+DQDORJRXWSXWVDUHGHULYHGIURPWKHRXWSXW
SUR.HVVRU7KHXSGDWHUDWHLVDOZD\VN+]WKHRXWSXWILOWHUWLPH.RQVWDQW.DQEHVHW
WRYDOXHVEHWZHHQVDQGNVLQDVHTXHQ.HDQGDOOIRXURXWSXWILOWHU
VORSHVHWWLQJDUHDYDLODEOH
,QWKLVPRGHWKH&+$1$/2*287387DQG&+$1$/2*287387.RQWUROV.DQHD.KEH
VHWWRDQ\RIWKHIROORZLQJIRXUWHHQDYDLODEOHVHWWLQJV
;9IV
:KHQVHWWR;WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH;IVIURQWSDQHOGLVSOD\DVIROORZV
; &+9ROWDJH
9
9
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 115/217
&KDSWHU)52173$1(/23(5$7,21
<9IV
:KHQVHWWR<WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH<IVIURQWSDQHOGLVSOD\DVIROORZV
< &+9ROWDJH
9
9 9
9
9
0$*9IV
:KHQVHWWR0$*WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHO
ZLOORXWSXWDYROWDJHUHODWHGWRWKH0$*IVRU5 IURQWSDQHOGLVSOD\VDV
IROORZV
0$*IV &+9ROWDJH
9
9
9
3+$6(9:KHQLQWKLVVHWWLQJWKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH3+$RUTIURQWSDQHOGLVSOD\VDVIROORZV
3+$RUTGHJ &+9ROWDJH
9
9
9
9 9
3+$6(9
:KHQLQWKLVVHWWLQJWKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH3+$RUTIURQWSDQHOGLVSOD\DVIROORZV
3+$RUTGHJ &+9ROWDJH
9
9
9
9 9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 116/217
&KDSWHU)52173$1(/23(5$7,21
12,6(9IV
:KHQVHWWR12,6(WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHO
ZLOORXWSXWDYROWDJHUHODWHGWRWKH1IVIURQWSDQHOGLVSOD\DVIROORZV
1IV &+9ROWDJH
9
9 9
1RWH:KHQ12,6(LVVHOH.WHGDVDQRXWSXWWKH1RLVH0HDVXUHPHQW0RGH
&RQILJXUDWLRQ0HQXPXVWEH21,ILWLVQRWDZDUQLQJPHVVDJHLVGLVSOD\HG
ZKL.KRIIHUVWKHRSWLRQRIWXUQLQJLWRQRUGHVHOH.WLQJ12,6(DVDQDQDORJ
RXWSXW
5$7,2
:KHQVHWWR5$7,2WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHO
ZLOORXWSXWDYROWDJHUHODWHGWRWKHUHVXOWRIWKH5$7,2.DO.XODWLRQZKL.KLV
GHILQHGDVIROORZV
×=
,QSXW$'&
RXWSXW;5$7,2
ZKHUH;RXWSXWLVWKH;.KDQQHORXWSXWDVDSHU.HQWDJHRIWKHIXOOV.DOH
VHQVLWLYLW\DQG$'&LVWKHYROWDJHDSSOLHGWRWKH$'&LQSXW.RQQH.WRURQWKH
UHDUSDQHOH[SUHVVHGLQYROWV+HQ.HIRUH[DPSOHLIWKHLQVWUXPHQWZHUH
PHDVXULQJDP9VLJQDOZKHQVHWWRWKHP9VHQVLWLYLW\VHWWLQJWKH;
.KDQQHORXWSXWZHUHPD[LPL]HGDQGD9VLJQDOZHUHDSSOLHGWRWKH$'&LQSXW
WKHQWKHYDOXHRI5$7,2ZRXOGEH
5$7,2
5$7,2
=
×=
7KHUHODWLRQVKLSEHWZHHQWKHYROWDJHDWWKH&+&+.RQQH.WRUDQGWKH5$7,2
YDOXHLVGHILQHGDVIROORZV
5$7,2 &+9ROWDJH
9 9
9
9
9
/2*5$7,2
:KHQVHWWR/2*5$7,2WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDU
SDQHOZLOORXWSXWDYROWDJHUHODWHGWRWKH/2*5$7,2.DO.XODWLRQZKL.KLV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 117/217
&KDSWHU)52173$1(/23(5$7,21
GHILQHGDVIROORZV
×=
LQSXW$'&
RXWSXW;ORJ5$7,2/2*
ZKHUH;RXWSXWLVWKH;.KDQQHORXWSXWDVDSHU.HQWDJHRIWKHIXOOV.DOHVHQVLWLYLW\DQG$'&LVWKHYROWDJHDSSOLHGWRWKH$'&LQSXW.RQQH.WRURQWKH
UHDUSDQHOH[SUHVVHGLQYROWV+HQ.HIRUH[DPSOHLIWKHLQVWUXPHQWZHUH
PHDVXULQJDP9VLJQDOZKHQVHWWRWKHP9VHQVLWLYLW\VHWWLQJWKH;
.KDQQHORXWSXWZHUHPD[LPL]HGDQGD9VLJQDOZHUHDSSOLHGWRWKH$'&LQSXW
WKHQWKHYDOXHRI/2*5$7,2ZRXOGEH
5$7,2/2*
ORJ5$7,2/2*
×=
7KHUHODWLRQVKLSEHWZHHQWKHYROWDJHDWWKH&+&+.RQQH.WRUDQGWKH
/2*5$7,2YDOXHLVGHILQHGDVIROORZV
/2*5$7,2 &+9ROWDJH
9
9
9
1RWH,I5$7,2WKHQ/2*5$7,2
(48$7,21
:KHQVHWWR(48$7,21WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDU
SDQHOZLOORXWSXWDYROWDJHUHODWHGWR(TXDWLRQZKL.KLVGHILQHGXVLQJWKH
2XWSXW(TXDWLRQVPHQXVHHVH.WLRQDVIROORZV
(48$7,21 &+9ROWDJH
9
9
9
(48$7,21
:KHQVHWWR(48$7,21WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDU SDQHOZLOORXWSXWDYROWDJHUHODWHGWR(TXDWLRQZKL.KLVGHILQHGXVLQJWKH8VHU
(TXDWLRQPHQXVHHVH.WLRQDVIROORZV
(48$7,21 &+9ROWDJH
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 118/217
&KDSWHU)52173$1(/23(5$7,21
;9IV
:KHQVHWWR;WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH;IVIURQWSDQHOGLVSOD\DVIROORZV
; &+9ROWDJH
9
9 9
9
9
<9IV
:KHQVHWWR<WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH<IVIURQWSDQHOGLVSOD\DVIROORZV
< &+9ROWDJH
9
9
9
9
9
0$*9IV
:KHQVHWWR0$*WKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHO
ZLOORXWSXWDYROWDJHUHODWHGWRWKH0$*IVRU5 IURQWSDQHOGLVSOD\VDV
IROORZV
0$*IV &+9ROWDJH
9
9 9
3+$6(9:KHQLQWKLVVHWWLQJWKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH3+$RUTIURQWSDQHOGLVSOD\VDVIROORZV
3+$RUTGHJ &+9ROWDJH
9
9
9
9 9
3+$6(9
:KHQLQWKLVVHWWLQJWKH.RUUHVSRQGLQJ&+&+.RQQH.WRURQWKHUHDUSDQHOZLOO
RXWSXWDYROWDJHUHODWHGWRWKH3+$RUTIURQWSDQHOGLVSOD\DVIROORZV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 119/217
&KDSWHU)52173$1(/23(5$7,21
3+$RUTGHJ &+9ROWDJH
9
9
9
9
9
9
)$67,QGXDOUHIHUHQ.HRUGXDOKDUPRQL.PRGHZKHQWKHDQDORJRXWSXWVRSHUDWLQJPRGHLV
VHWWR)DVWWKH&+DQG&+DQDORJRXWSXWVDUHGHULYHGHLWKHUIURPWKHILUVWVWDJHRI
RXWSXWILOWHULQJRUIURPWKHRXWSXWSUR.HVVRU7KHVHOH.WLRQRIZKL.K.RQQH.WLRQLV
PDGHDQGWKHUHVXOWLQJRXWSXWXSGDWHUDWHGHSHQGVRQWKHVHWWLQJRIWKHWZRRXWSXW
WLPH.RQVWDQW.RQWUROVDVVKRZQLQWDEOHEHORZ
7LPH&RQVWDQW
+DUPRQL.RU
,QWHUQDO5HIHUHQ.H
7LPH&RQVWDQW
+DUPRQL.RU
([WHUQDO5HIHUHQ.H
&+&+$QDORJ
2XWSXW8SGDWH
5DWH
(IIH.WLYHPD[LPXP
7&DW&+RU&+
$QDORJ2XWSXWV
dPV dPV 0+] PV
dPV tPV 0+] PV
tPV dPV 0+] PV
tPV tPV N+] NV
7DEOH$QDORJ2XWSXW8SGDWH5DWH)DVW0RGHYV7&7&
1RWHWKDWDOWKRXJKWKHPD[LPXPHIIH.WLYHWLPH.RQVWDQWRIWKHDQDORJRXWSXWVLV
OLPLWHGLQWKHILUVWWKUHH.DVHVWRPVWKHWLPH.RQVWDQWDSSO\LQJWRWKHGLJLWDORXWSXWV
LHIURQWSDQHOGLVSOD\VDQGYDOXHVUHWXUQHGRYHUWKH.RPSXWHULQWHUID.HVLVDOZD\V
WKHVHWYDOXH)RUH[DPSOHLI7&ZHUHVHWWRVDQG7&WRPVZLWK)DVW
PRGHVHOH.WHGWKHQWKHWLPH.RQVWDQWDSSO\LQJWRWKHGLJLWDORXWSXWVRI+DUPRQL.RU
WKH([WHUQDO5HIHUHQ.HLH7&ZRXOGEHPV
,QWKH)DVWPRGHZLWKGXDOUHIHUHQ.HRUGXDOKDUPRQL.PRGHWKHRXWSXWILOWHUVORSHLV
IL[HGDWG%R.WDYHDQGWKHUHLVQR.KRL.HDVWRWKHVHWWLQJIRUWKH
&+$1$/2*287387DQG&+$1$/2*287387.RQWUROVZKL.KDUHIL[HGDVIROORZV
&+$1$/2*287387
;9IV
7KH&+.RQQH.WRURQWKHUHDUSDQHOZLOORXWSXWDYROWDJHUHODWHGWRWKH;IV
IURQWSDQHOGLVSOD\DVIROORZV
; &+9ROWDJH
9
9
9
9
9
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 120/217
&KDSWHU)52173$1(/23(5$7,21
&+$1$/2*287387
;9IV
7KH&+.RQQH.WRURQWKHUHDUSDQHOZLOORXWSXWDYROWDJHUHODWHGWRWKH;IV
IURQWSDQHOGLVSOD\DVIROORZV
; &+9ROWDJH
9 9
9
9
9
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH&RQILJXUDWLRQ0HQX
7KLV.RPSOHWHVWKHGHV.ULSWLRQRIWKHGXDOUHIHUHQ.HPRGHPHQXV
0HQX'HV.ULSWLRQV'XDO+DUPRQL.0RGH
'XDO+DUPRQL.6HWXS0HQX
7KHGXDOKDUPRQL.PRGHDOORZVWKHPRGHOWRPHDVXUHVLJQDOVDSSOLHGWRWKH
VLJQDOLQSXWDWWZRGLIIHUHQWKDUPRQL.VRIWKHUHIHUHQ.HIUHTXHQ.\VLPXOWDQHRXVO\7KH
UHIHUHQ.HPD\EHHLWKHUH[WHUQDOO\VXSSOLHGRUGHULYHGIURPWKHLQWHUQDORV.LOODWRU
'XULQJGXDOKDUPRQL.PRGHRSHUDWLRQVRPHRIWKH.RQWURODQGGLVSOD\PHQXVGLIIHU
IURPWKRVHXVHGIRUVLQJOHUHIHUHQ.HPRGHVRWKHVHDUHGHV.ULEHGLQWKHIROORZLQJ
VH.WLRQV7KHUHPDLQLQJPHQXVRSHUDWHLQWKHVDPHZD\DVLQVLQJOHUHIHUHQ.HPRGHDV
DOUHDG\GHV.ULEHGLQVH.WLRQ
:KHQWKH&RQILJXUDWLRQPHQXLVGLVSOD\HGSUHVVLQJWKH'XDO+DUPRQL.NH\D.WLYDWHV
WKHGXDOKDUPRQL.PRGH:KLOHWKHLQVWUXPHQWVZLW.KHVWRWKLVPRGHWKH'XDO
+DUPRQL.6HWXSPHQXLVGLVSOD\HGDVVKRZQLQILJXUH
)LJXUH'XDO+DUPRQL.6HWXS0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 121/217
&KDSWHU)52173$1(/23(5$7,21
'XDO+DUPRQL.0DLQ'LVSOD\
2Q.HGXDOKDUPRQL.KDVEHHQD.WLYDWHGWKH0DLQ'LVSOD\'XDO+DUPRQL.0RGHLV
GLVSOD\HGDVVKRZQLQILJXUH
)LJXUH0DLQ'LVSOD\'XDO+DUPRQL.0RGH
,QGXDOKDUPRQL.PRGH.RQWUROVDQGGLVSOD\VUHODWLQJWRWKHILUVWGHWH.WLRQKDUPRQL.
.DUU\WKHVXIIL[DQGWKRVHIRUWKHVH.RQGWKHVXIIL[+HQ.HIRUH[DPSOHLID
UHIHUHQ.HIUHTXHQ.\RIN+]LVDSSOLHG5HI+DUPRQL.LVVHWWRDQG5()
+DUPRQL.WRWKHLQVWUXPHQWZLOOPHDVXUHVLJQDOVDWERWKN+]DQGN+]7KH
6HQVLWLYLW\7LPH&RQVWDQWDQG5HI3KDVH.RQWUROVZLOODIIH.WWKHVLJQDOEHLQJ
PHDVXUHGDWN+]ZKLOHWKH6HQVLWLYLW\7LPH&RQVWDQWDQG5HI3KDVH.RQWUROV
ZLOODIIH.WWKHVLJQDOEHLQJPHDVXUHGDWN+]
7KHUDQJHRI.RQWUROVWKDW.DQEHSOD.HGRQWKHOHIWKDQGVLGHRIWKH0DLQ'LVSOD\
XVLQJWKH6HOH.W&RQWURONH\LVWKHUHIRUHH[WHQGHGWRLQ.OXGHWKRVHUHODWLQJWRERWK
KDUPRQL.VRIWKHUHIHUHQ.HDVIROORZV
6(16,7,9,7<
6(16,7,9,7<:KHQVHWWRYROWDJHLQSXWPRGHXVLQJWKH6LJQDO&KDQQHOPHQXWKHLQVWUXPHQWVIXOO
V.DOHYROWDJHVHQVLWLYLW\PD\EHVHWWRDQ\YDOXHEHWZHHQQ9DQG9LQD
VHTXHQ.H
:KHQVHWWR.XUUHQWLQSXWPRGHXVLQJWKH6LJQDO&KDQQHOPHQXWKHLQVWUXPHQWVIXOO
V.DOH.XUUHQWVHQVLWLYLW\PD\EHVHWWRDQ\YDOXHEHWZHHQS$DQG$ZLGH EDQGZLGWKPRGHI$DQG$QRUPDOPRGHRUI$DQGQ$ORZQRLVH
PRGHLQDVHTXHQ.H
7KHQXPEHUUHSRUWHGDIWHUWKHOHWWHUV'5LVWKHLQVWUXPHQWV'\QDPL.5HVHUYH
H[SUHVVHGLQGH.LEHOVDV.DO.XODWHGE\WKHIROORZLQJHTXDWLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 122/217
&KDSWHU)52173$1(/23(5$7,21
'5 6(1
$&*DLQLQG%= ×
−
ORJ
([DPSOH
,I$&*DLQG%DQG6(1P9WKHQ
ORJ'5 −
×=
'5G%
7,0(&2167$17
7,0(&2167$177KHWLPH.RQVWDQWRIWKHRXWSXWILOWHUVLVVHWXVLQJWKLV.RQWUROLQWKHUDQJHVWR
NVLQDVHTXHQ.H6HWWLQJVRIPVDQGEHORZUHVWUL.WWKH.KRL.HRI
LQVWUXPHQWRXWSXWVWR;<DQG0DJQLWXGH
5()3+$6(
5()3+$6(7KHVH.RQWUROVDOORZVWKHUHIHUHQ.HSKDVHRIHD.KGHWH.WLRQ.KDQQHOWREHDGMXVWHGRYHU
WKHUDQJHWRLQPVWHSV$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU
$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
5()3+$6(
5()3+$6(7KHVH.RQWUROVDOORZWKHUHOHYDQWUHIHUHQ.HSKDVHWREHDGMXVWHGLQVWHSVRI
;2))6(7<2))6(7;2))6(7DQG<2))6(77KHVHDUHWKHPDQXDO;;.KDQQHODQG<<.KDQQHORXWSXWRIIVHW.RQWUROV7KH
RIIVHWOHYHOVVHWE\WKHVH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQG
LQVWHSVDUHDGGHGWRWKH;;<RU<.KDQQHORXWSXWVZKHQWKHUHOHYDQW
.KDQQHORIIVHWVDUHVZLW.KHGRQXVLQJWKH2XWSXW&KDQQHOVPHQX$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQ1RWHWKDWWKH$XWR
2IIVHWIXQ.WLRQDXWRPDWL.DOO\VZLW.KHVRQDOORXWSXWRIIVHWV
5()+$5021,&
5()+$5021,&
7KHVH.RQWUROVVHWWKHKDUPRQL.RIWKHDSSOLHGUHIHUHQ.HIUHTXHQ.\HLWKHULQWHUQDORU H[WHUQDODWZKL.KWKHOR.NLQDPSOLILHUVWZRUHIHUHQ.H.KDQQHOVRSHUDWHLQWKHUDQJH
VWIXQGDPHQWDOPRGHWRQG)RUH[DPSOHLI5HI+DUPRQL.LVVHWWRUGDQG
5HI+DUPRQL.LVVHWWRWKDQGDUHIHUHQ.HVLJQDORIN+]LVDSSOLHGWKHLQVWUXPHQW
ZLOOPHDVXUHVLJQDOVDWLWVLQSXWDWIUHTXHQ.LHVRIERWKN+]DQGN+]
$8;'$&DQG $8;'$&
7KHVHWZR.RQWUROVVHWWKHYROWDJHDSSHDULQJDWWKH'$&DQG'$&RXWSXW
.RQQH.WRUVRQWKHUHDUSDQHOWRDQ\YDOXHEHWZHHQ9DQG9ZLWKDUHVROXWLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 123/217
&KDSWHU)52173$1(/23(5$7,21
RIP9$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
26&)5(48(1&<7KHIUHTXHQ.\RIWKHLQVWUXPHQWVLQWHUQDORV.LOODWRUPD\EHVHWXVLQJWKLV.RQWUROWR
DQ\YDOXHEHWZHHQ+]DQG0+]ZLWKDP+]UHVROXWLRQ$GMXVWPHQWLV
IDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
26&$03/,78'(7KLV.RQWUROPD\EHVHWWRDQ\YDOXHEHWZHHQP9DQG9UPV$GMXVWPHQWLVIDVWHU
XVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
6LQ.HWKHLQVWUXPHQWLVQRZJHQHUDWLQJWZRVHWVRIRXWSXWVRQHIRUHD.KKDUPRQL.RI
WKHUHIHUHQ.HWKHUHDUHPRUHRXWSXWGLVSOD\.KRL.HVLQWKLVPRGHWKDQLQVLQJOH
UHIHUHQ.HPRGHDQGWKHVHDUHOLVWHGLQWDEOH7KHRXWSXWV.RUUHVSRQGLQJWRWKHWZR
KDUPRQL.VDUHLGHQWLILHGE\WKHVXIIL.HVDQGUHVSH.WLYHO\
2XWSXW 'HV.ULSWLRQ
7LWOH
1XPHUL.'LVSOD\VRQO\
5 5HVXOWDQW0DJQLWXGHRXWSXWKDUPRQL.)6
5 5HVXOWDQW0DJQLWXGHRXWSXWKDUPRQL.)6
1 1RLVHRXWSXWDERXWKDUPRQL.)6
1 1RLVHRXWSXWDERXWKDUPRQL.)6
6 3KDVHRXWSXWKDUPRQL.LQGHJUHHV
6 3KDVHRXWSXWKDUPRQL.LQGHJUHHV
; ;.KDQQHORXWSXWKDUPRQL.)6
; ;.KDQQHORXWSXWKDUPRQL.)6
<
<.KDQQHORXWSXWKDUPRQL.)6< <.KDQQHORXWSXWKDUPRQL.)6
1XPHUL.'LVSOD\VRQO\.RQWLQXHG
5 5HVXOWDQW0DJQLWXGHRXWSXWKDUPRQL.LQYROWVRUDPSV
5 5HVXOWDQW0DJQLWXGHRXWSXWKDUPRQL.LQYROWVRUDPSV
1XPHUL.DQG%DU*UDSK'LVSOD\V
; ;.KDQQHORXWSXWKDUPRQL.LQYROWVRUDPSV
; ;.KDQQHORXWSXWKDUPRQL.LQYROWVRUDPSV
< <.KDQQHORXWSXWKDUPRQL.LQYROWVRUDPSV
< <.KDQQHORXWSXWKDUPRQL.LQYROWVRUDPSV
1 1RLVHRXWSXWDERXWKDUPRQL.LQYROWVRUDPSVSHUURRWKHUW]1 1RLVHRXWSXWDERXWKDUPRQL.LQYROWVRUDPSVSHUURRWKHUW]
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
$'& $'&LQSXW9IXOOV.DOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 124/217
&KDSWHU)52173$1(/23(5$7,21
%DU*UDSK'LVSOD\VRQO\
0$* 5HVXOWDQW0DJQLWXGHRXWSXWKDUPRQL.LQYROWVRUDPSV
0$* 5HVXOWDQW0DJQLWXGHRXWSXWKDUPRQL.LQYROWVRUDPSV
3+$ 3KDVHRXWSXWKDUPRQL.LQGHJUHHV
3+$ 3KDVHRXWSXWKDUPRQL.LQGHJUHHV
7DEOH2XWSXW'LVSOD\&KRL.HV'XDO+DUPRQL.0RGH
7KHDGGLWLRQDORXWSXWVPD\EHVWRUHGWRWKH.XUYHEXIIHUEXWRQO\ZKHQWKH.XUYH
VHOH.WLRQLVPDGHYLDWKH.RPSXWHULQWHUID.H7KH&XUYH6HOH.WPHQXRQO\DOORZV
VHOH.WLRQRIWKHVDPHVL[WHHQGDWDW\SHVDVLQVLQJOHUHIHUHQ.HPRGH
:KHQLQGXDOKDUPRQL.PRGHWKHXVHUGHILQHGHTXDWLRQVVSH.LILHGRQWKH2XWSXW
(TXDWLRQVPHQXDOORZWKHVHOH.WLRQRIWKHDGGLWLRQDORXWSXWVDVYDULDEOHV)RU
H[DPSOHLWLVSRVVLEOHWR.DO.XODWHDYDOXHSURSRUWLRQDOWRWKHUDWLRRIWKH;.KDQQHO
RXWSXWWRWKDWRIWKH; .KDQQHORXWSXW:LWKVXLWDEOHV.DOLQJWKLV.DQEHRXWSXWWRWKH
&+RU&+.RQQH.WRUVRQWKHUHDUSDQHODVDQDQDORJYROWDJH
1DWXUDOO\WKHWZRKDUPRQL.VRIWKHVLJQDOEHLQJPHDVXUHGVKDUHD.RPPRQVLJQDOSDWK
DQGKHQ.H.RQWUROVDIIH.WLQJWKHVLJQDO.KDQQHOVX.KDV$&*DLQDQGWKHOLQHILOWHU
.RQWUROVDSSO\WRERWKKDUPRQL.V$OWKRXJKWKHIXOOV.DOHVHQVLWLYLW\VHWWLQJ.DQEH
LQGHSHQGHQWO\VHWIRUERWKKDUPRQL.VWKHPD[LPXP$&*DLQWKDWLVSRVVLEOHGHSHQGV
RQWKHJUHDWHURIWKHVHWZRYDOXHV
,QVWDQGDUGLQVWUXPHQWVWKHPD[LPXPGHWH.WLRQIUHTXHQ.\IRUHLWKHUKDUPRQL.RU
KDUPRQL.LVN+]XQLWVILWWHGZLWKWKHDOORZRSHUDWLRQWRN+]DQG
WKRVHZLWKWKDOORZRSHUDWLRQWR0+]
5HIHUHQ.H&KDQQHO0HQX
,QGXDOKDUPRQL.PRGHWKHUHIHUHQ.H.KDQQHOLV.RQWUROOHGE\WKH'XDO+DUPRQL.
5HIHUHQ.HPHQXZKL.KGLIIHUVIURPWKH5HIHUHQ.H&KDQQHOPHQXXVHGLQWKHRWKHU
WKUHHPRGHV,QDGGLWLRQ.RQWUROVDUHQHHGHGIRUWKH.RUUHVSRQGLQJRXWSXW.KDQQHOV
DQGVRWKH2XWSXW)LOWHUVDQG2XWSXW2IIVHWDQG([SDQGVXEPHQXVDOVR.KDQJH7KH
UHODWLRQVKLSRIDOOWKHVHPHQXVWR0DLQ0HQXLVVKRZQLQILJXUH1RWHWKDWDV
ZLWKWKHPDLQPHQXVWUX.WXUHVKRZQLQILJXUHLWLVSRVVLEOHWRUHWXUQWRWKH0DLQ
'LVSOD\IURPDQ\PHQXE\SUHVVLQJWKH3UHYLRXV0HQXNH\EXWWKLVKDVEHHQRPLWWHG
IURPILJXUHIRUWKHVDNHRI.ODULW\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 125/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH'XDO+DUPRQL.0RGH0HQX6WUX.WXUH
,QGXDOKDUPRQL.PRGHSUHVVLQJDNH\DGMD.HQWWRWKH5HIHUHQ.H&KDQQHOLWHPRQ
0DLQ0HQXD..HVVHVWKH'XDO+DUPRQL.5HIHUHQ.HPHQXVKRZQLQILJXUH
)LJXUH'XDO+DUPRQL.5HIHUHQ.H0HQX
7KH'XDO+DUPRQL.5HIHUHQ.HPHQXKDVILYH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV
UHIHUHQ.H.KDQQHO&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW NH\V
5()6285&(7KLV.RQWURODOORZVVHOH.WLRQRIWKHVRXU.HRIUHIHUHQ.HVLJQDOXVHGWRGULYHWKH
UHIHUHQ.H.LU.XLWU\DQGKDVWKUHHVHWWLQJV
,177KHOR.NLQDPSOLILHUVUHIHUHQ.HLVWDNHQIURPWKHLQVWUXPHQWVLQWHUQDORV.LOODWRU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 126/217
&KDSWHU)52173$1(/23(5$7,21
1RWHWKDWWKLVVHWWLQJJLYHVWKHEHVWSKDVHDQGJDLQPHDVXUHPHQWD..XUD.\XQGHU
DOORSHUDWLQJ.RQGLWLRQVDQGLWLVDOZD\VWREHSUHIHUUHGLISRVVLEOHWRGHVLJQWKH
H[SHULPHQWVRWKDWWKHOR.NLQDPSOLILHUD.WVDVWKHVRXU.HRIWKHUHIHUHQ.HVLJQDO
(;75,QWKLVVHWWLQJWKHUHIHUHQ.H.KDQQHOLV.RQILJXUHGWRD..HSWDVXLWDEOHH[WHUQDO
UHIHUHQ.HVRXU.HDSSOLHGWRWKHUHDUSDQHO5()7//LQSXW.RQQH.WRU
(;7),QWKLVVHWWLQJWKHUHIHUHQ.H.KDQQHOLV.RQILJXUHGWRD..HSWDVXLWDEOHH[WHUQDO
UHIHUHQ.HVRXU.HDSSOLHGWRWKHIURQWSDQHO5(),1LQSXW.RQQH.WRU
5()+$5021,&
5()+$5021,&7KHVHWZR.RQWUROVDOORZVHOH.WLRQRIWKHWZRKDUPRQL.VRIWKHUHIHUHQ.HIUHTXHQ.\DW
ZKL.KWKHOR.NLQDPSOLILHUZLOOGHWH.W7KH\.DQEHVHWWRDQ\YDOXHEHWZHHQVWDQG
QG$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
5()3+$6(
5()3+$6(7KHVHWZR.RQWUROVDOORZWKHUHIHUHQ.HSKDVHRIKDUPRQL.DQGKDUPRQL.WREH
LQGHSHQGHQWO\DGMXVWHGRYHUWKHUDQJHWRLQPVWHSV$GMXVWPHQWLV
IDVWHUXVLQJWKHH\SDGRU$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
7KH$XWR3KDVHDQG$XWR3KDVHIXQ.WLRQVVHHVH.WLRQDOVRDIIH.WWKH
VHWWLQJVRIWKHVH.RQWUROV
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
'XDO+DUPRQL.2XWSXW)LOWHUV0HQX
,QGXDOKDUPRQL.PRGHSUHVVLQJWKH2XWSXW)LOWHUVNH\RQ0DLQ0HQXD..HVVWKH
'XDO+DUPRQL.2XWSXW)LOWHUV0HQXVKRZQLQILJXUH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 127/217
&KDSWHU)52173$1(/23(5$7,21
)LJXUH'XDO+DUPRQL.2XWSXW)LOWHUV0HQX
7KH'XDO+DUPRQL.2XWSXW)LOWHUVPHQXKDVILYH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV
RXWSXWORZSDVVILOWHUV&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJ
WKHDGMD.HQW NH\V
7KH.RQWUROVRSHUDWHDVIROORZV
7,0(&2167$17
7,0(&2167$177KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\.RQWUROVRIWKHVDPHQDPHDUHXVHG
WRVHWWKHWLPH.RQVWDQWRIHD.KRIWKHRXWSXWILOWHUV
6/23(
6/23(7KHUROORIIRIHD.KRIWKHRXWSXWVILOWHUV.DQEHVHWXVLQJWKLV.RQWUROWRHLWKHUG%
RUG%SHUR.WDYH
6<1&7,0(&2167$177KLV.RQWUROKDVWZRVHWWLQJVDVIROORZV
,QWKLVVHWWLQJZKL.KLVWKHQRUPDOPRGHWLPH.RQVWDQWVDUHQRWUHODWHGWRWKH
UHIHUHQ.HIUHTXHQ.\SHULRG
,QWKLVVHWWLQJWKHD.WXDOWLPH.RQVWDQWXVHGLV.KRVHQWREHVRPHPXOWLSOHRIWKH
UHIHUHQ.HIUHTXHQ.\SHULRGJLYLQJDPX.KPRUHVWDEOHRXWSXWDWORZIUHTXHQ.LHV
WKDQZRXOGRWKHUZLVHEHWKH.DVH1RWHWKDWGHSHQGLQJRQWKHUHIHUHQ.HIUHTXHQ.\
RXWSXWWLPH.RQVWDQWVVKRUWHUWKDQPV.DQQRWEHXVHG
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 128/217
&KDSWHU)52173$1(/23(5$7,21
2XWSXW2IIVHW+DUP0HQX
,QGXDOKDUPRQL.PRGHZKHQ0DLQ0HQXLVGLVSOD\HGSUHVVLQJDNH\DGMD.HQWWR
WKH2XWSXW2IIVHW([SDQGLWHPD..HVVHVWKH2XWSXW2IIVHW+DUPPHQXZKL.KLV
VKRZQLQILJXUH
)LJXUH2XWSXW2IIVHW+DUP0HQX
7KH2XWSXW2IIVHW+DUPPHQXKDVWKUHH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV
;.KDQQHODQG<.KDQQHORXWSXWVDQGDNH\WRD..HVVDIXUWKHUVXEPHQXZKL.KKDV
.RUUHVSRQGLQJ.RQWUROVIRUWKH;.KDQQHODQG<.KDQQHO&KDQJHVWRWKHVHWWLQJRI
WKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW NH\VZLWKWKH.XUUHQWO\D.WLYH
VHOH.WLRQEHLQJKLJKOLJKWHG
;2))6(7DQG<2))6(77KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\;2))6(7DQG<2))6(7.RQWUROVDOORZPDQXDODGMXVWPHQWRIWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
7KHRIIVHWOHYHOVHWE\WKH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQG
LQVWHSVLVDGGHGWRWKH;.KDQQHORU<.KDQQHORXWSXWZKHQWKH;
.KDQQHORU<.KDQQHORIIVHWLVVZLW.KHGRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU
$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQZKL.KDOVRVZLW.KHVRQ
ERWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
2))6(767$786
7KLV.RQWURODOORZVWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVVHWE\WKHDERYHOHYHO.RQWUROVWREHVZLW.KHGRQWRHLWKHURUERWKRXWSXWVRUWREHVZLW.KHGRII,W
WKHUHIRUHKDVIRXUVHWWLQJVDVIROORZV
121(%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRII
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 129/217
&KDSWHU)52173$1(/23(5$7,21
;7KH;.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
<7KH<.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
;<%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRQ
3UHVVLQJWKH2XWSXW2IIVHW+DUPNH\D..HVVWKH2XWSXW2IIVHW+DUPPHQXDQG
SUHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWR0DLQ0HQX
2XWSXW2IIVHW+DUP0HQX
,QGXDOKDUPRQL.PRGHZKHQ2XWSXW2IIVHW+DUP0HQXLVGLVSOD\HGSUHVVLQJWKH
2XWSXW2IIVHW+DUP0HQXNH\D..HVVHVWKH2XWSXW2IIVHW+DUPPHQXZKL.KLV
VKRZQLQILJXUH
)LJXUH2XWSXW2IIVHW+DUP0HQX
7KH2XWSXW2IIVHW+DUPPHQXKDVWKUHH.RQWUROVDIIH.WLQJWKHLQVWUXPHQWV
;.KDQQHODQG<.KDQQHORXWSXWVDQGDNH\WRUHWXUQWRWKH2XWSXW2IIVHW+DUP
PHQX&KDQJHVWRWKHVHWWLQJRIWKHVH.RQWUROV.DQEHPDGHE\XVLQJWKHDGMD.HQW
NH\VZLWKWKH.XUUHQWO\D.WLYHVHOH.WLRQEHLQJKLJKOLJKWHG
;2))6(7DQG<2))6(77KHVH.RQWUROVZKL.KGXSOL.DWHWKH0DLQ'LVSOD\;2))6(7DQG<2))6(7.RQWUROVDOORZPDQXDODGMXVWPHQWRIWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
7KHRIIVHWOHYHOVHWE\WKH.RQWUROVZKL.K.DQEHDQ\YDOXHEHWZHHQDQG
LQVWHSVLVDGGHGWRWKH;.KDQQHORU<.KDQQHORXWSXWZKHQWKH;
.KDQQHORU<.KDQQHORIIVHWLVVZLW.KHGRQ$GMXVWPHQWLVIDVWHUXVLQJWKHH\SDGRU
$.WLYH&XUVRU.RQWUROVVHHVH.WLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 130/217
&KDSWHU)52173$1(/23(5$7,21
7KHYDOXHVDUHVHWDXWRPDWL.DOO\E\WKH$XWR2IIVHWIXQ.WLRQZKL.KDOVRVZLW.KHVRQ
ERWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWV
2))6(767$7867KLV.RQWURODOORZVWKH;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVVHWE\WKHDERYH
OHYHO.RQWUROVWREHVZLW.KHGRQWRHLWKHURUERWKRXWSXWVRUWREHVZLW.KHGRII,W
WKHUHIRUHKDVIRXUVHWWLQJVDVIROORZV
121(%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRII
;7KH;.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
<7KH<.KDQQHORXWSXWRIIVHWLVVZLW.KHGRQ
;<%RWK;.KDQQHODQG<.KDQQHORXWSXWRIIVHWVDUHVZLW.KHGRQ
3UHVVLQJWKH3UHYLRXV0HQXNH\UHWXUQV.RQWUROWRWKH2XWSXW2IIVHW+DUP0HQX
$XWR)XQ.WLRQV0HQX
,QGXDOKDUPRQL.PRGHSUHVVLQJDNH\DGMD.HQWWRWKH$XWR)XQ.WLRQVLWHPRQ0DLQ
0HQXD..HVVHVWKH$XWR)XQ.WLRQVPHQXVKRZQLQILJXUH
)LJXUH$XWR)XQ.WLRQV0HQX'XDO+DUPRQL.0RGH
7KLVPHQXLVYLUWXDOO\LGHQWL.DOWRWKHQRUPDOVLQJOHUHIHUHQ.HPRGH$XWR)XQ.WLRQV
PHQXH[.HSWWKDWWKHDQDGGLWLRQDONH\DSSHDUVLQWKHORZHUOHIWKDQG.RUQHUPDUNHG
+DUPRQL.PHQXRU+DUPRPL.PHQX(D.KSUHVVRIWKLVNH\WRJJOHVWKHGLVSOD\HGVHW
RIDXWRIXQ.WLRQ.RQWUROVEHWZHHQWKRVHDSSO\LQJWRKDUPRQL.DQGWKRVHDSSO\LQJWR
KDUPRQL.
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 131/217
&KDSWHU)52173$1(/23(5$7,21
1RWHWKDWRQ.HWKHVHIXQ.WLRQV.RPSOHWHWKH$XWR)XQ.WLRQVPHQXLVUHSOD.HGE\WKH
0DLQ'LVSOD\7KHUHDUHIRXUDXWRIXQ.WLRQVIRUHD.KRIWKHWZRKDUPRQL.UHIHUHQ.H
.KDQQHOVZKL.KRSHUDWHH[D.WO\DVGHV.ULEHGIRUVLQJOHUHIHUHQ.HPRGHLQVH.WLRQ
3UHVVLQJDNH\DGMD.HQWWRWKH$XWR'HIDXOWLWHP.DUULHVRXWDQ$XWR'HIDXOWRSHUDWLRQ
DQGUHVHWVWKHLQVWUXPHQWWRVLQJOHUHIHUHQ.HPRGH
&RQILJXUDWLRQ0HQX'XDO+DUPRQL.0RGH
)LJXUH&RQILJXUDWLRQ0HQX'XDO+DUPRQL.0RGH
,QGXDOKDUPRQL.PRGHWKH'XDO+DUPRQL.NH\GLVSOD\HGRQWKH&RQILJXUDWLRQPHQX
ZKHQLQVLQJOHUHIHUHQ.HPRGHLVUHSOD.HGE\DNH\PDUNHG6LQJOH5HIHUHQ.HDVVKRZQ
LQILJXUH7ROHDYHGXDOKDUPRQL.PRGHDQGUHWXUQWRVLQJOHUHIHUHQ.HPRGHSUHVVWKH6LQJOH5HIHUHQ.HNH\WRVZLW.KWRGXDOUHIHUHQ.HPRGHSUHVVWKH'XDO5HIHUHQ.H
NH\DQGWRVZLW.KWRYLUWXDOUHIHUHQ.HPRGHSUHVVWKH9LUWXDO5HIHUHQ.HNH\7KH
UHPDLQLQJ.RQWUROVRSHUDWHDVDOUHDG\GHV.ULEHGLQVH.WLRQH[.HSWWKDWWKH
$QDORJ2XWSXWVPHQXRSHUDWHVDVGHV.ULEHGLQVH.WLRQ
7KLV.RPSOHWHVWKHGHV.ULSWLRQRIWKHGXDOKDUPRQL.PRGHPHQXV
7\SL.DO/R.NLQ$PSOLILHU([SHULPHQW
7KHPRGHOLVD.RPSOH[LQVWUXPHQWZKL.KKDVPDQ\.RQWUROVDQGWKHIROORZLQJ
EDVL..KH.NOLVWPD\EHKHOSIXOLQVHWWLQJXSWKHLQVWUXPHQWIRUPDQXDORSHUDWLRQLQVLQJOHUHIHUHQ.HPRGH
$XWR'HIDXOW
8VHWKH$XWR'HIDXOWIXQ.WLRQRQWKH$XWR)XQ.WLRQVPHQXWRVHWWKHLQVWUXPHQWWRD
GHILQHGVWDWH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 132/217
&KDSWHU)52173$1(/23(5$7,21
6HOH.WLRQRI6LJQDO,QSXW
8VHWKH6LJQDO&KDQQHOPHQXWRVHOH.WYROWDJHVLQJOHHQGHGRUGLIIHUHQWLDORU.XUUHQW
LQSXWPRGHDQG.RQQH.WWKHVLJQDOVRXU.HWRWKHUHOHYDQW$DQGRU%,LQSXW
.RQQH.WRUVRQWKHIURQWSDQHO
6HOH.WLRQRI5HIHUHQ.H0RGH
7KHGHIDXOWVHWWLQJIXQ.WLRQZLOOKDYHVHWWKHUHIHUHQ.HPRGHWRLQWHUQDOZKL.KDVVXPHVWKDWWKHLQWHUQDORV.LOODWRUZLOOEHXVHGDVDVRXU.HRIH[.LWDWLRQWR\RXU
H[SHULPHQW8VHWKH,QWHUQDO2V.LOODWRUDPSOLWXGHDQGIUHTXHQ.\.RQWUROVWRVHWWKH
UHTXLUHGRV.LOODWRURXWSXWDQG.RQQH.WWKHRXWSXWVLJQDOIURPWKH26&287
.RQQH.WRURQWKHIURQWSDQHOWRWKHH[SHULPHQW
,IXVLQJH[WHUQDOUHIHUHQ.HPRGHXVHWKH5HIHUHQ.H&KDQQHOPHQXWRVHOH.WRQHRIWKH
WZRH[WHUQDOPRGHVDQG.RQQH.WWKHUHIHUHQ.HVLJQDOWRWKH.RUUH.W.RQQH.WRU
$XWR0HDVXUH
8VHWKH$XWR0HDVXUHIXQ.WLRQRQWKH$XWR)XQ.WLRQVPHQXWRVHWWKHLQVWUXPHQWVR
WKDWLWLV.RUUH.WO\GLVSOD\LQJWKHVLJQDO
2WKHU$GMXVWPHQWV
8VHWKH.HQWHUULJKWKDQG NH\RQWKH0DLQ'LVSOD\WRVHOH.WWKHGLVSOD\IRUPDW
UHTXLUHGDQGWKHXSSHUDQGORZHUULJKWKDQG NH\VWRVHOH.WWKHRXWSXWV
DOOR.DWHGWRWKHIRXUGLVSOD\SRVLWLRQV7KHIRXUXVHUVHOH.WHG0DLQ'LVSOD\.RQWUROV
.DQEH.KRVHQXVLQJWKH6HOH.W&RQWURONH\,IWKHDQDORJRXWSXWVRIWKHLQVWUXPHQWDUH
WREHXVHGXVHWKH$QDORJ2XWSXWVPHQXWRVSH.LI\ZKDWWKHRXWSXWVLJQDOVDWWKH
&+DQG&+.RQQH.WRUVRQWKHUHDUSDQHOVKRXOGUHSUHVHQW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 133/217
&RPSXWHU2SHUDWLRQ&KDSWHU
,QWURGX.WLRQ
7KHPRGHOLQ.OXGHVERWK56DQG*3,%,(((LQWHUID.HSRUWVGHVLJQHG
WRDOORZWKHOR.NLQDPSOLILHUWREH.RPSOHWHO\.RQWUROOHGIURPDUHPRWH.RPSXWHU
9LUWXDOO\DOORIWKHLQVWUXPHQWV.RQWUROVPD\EHRSHUDWHGDQGDOORIWKHRXWSXWV.DQEH
UHDGYLDWKHVHLQWHUID.HV,QDGGLWLRQWKHUHDUHDIHZIXQ.WLRQVVX.KDV.XUYHVWRUDJH
RIWKHVH.RQGUHIHUHQ.H.KDQQHORXWSXWVLQGXDOUHIHUHQ.HDQGGXDOKDUPRQL.PRGHV
ZKL.K.DQRQO\EHD..HVVHGUHPRWHO\
7KLV.KDSWHUGHV.ULEHVWKH.DSDELOLWLHVRIWKHLQVWUXPHQWZKHQRSHUDWHGUHPRWHO\DQG
GLV.XVVHVKRZWKLVLVGRQH
&DSDELOLWLHV
*HQHUDO$OOLQVWUXPHQW.RQWUROVZKL.K.DQEHVHWXVLQJWKHIURQWSDQHOGLVSOD\PHQXV.DQDOVR
EHVHWUHPRWHO\ZLWKWKHH[.HSWLRQRIWKH6SH.WUDO'LVSOD\.RQWUROVDQGWKH8VHU
6HWWLQJV,QDGGLWLRQWKHSUHVHQWVHWWLQJRIHD.K.RQWURO.DQEHGHWHUPLQHGE\WKH
.RPSXWHU$OOLQVWUXPHQWRXWSXWVZKL.K.DQEHGLVSOD\HGRQWKHIURQWSDQHOZLWKWKH
H[.HSWLRQRIWKH6SH.WUDO'LVSOD\PD\DOVREHUHDGUHPRWHO\
7KHUHDUHQR.RPPDQGVWRVHOH.WZKL.KPHQXLVGLVSOD\HGRQWKHLQVWUXPHQWDOWKRXJK
LIWKH0DLQ'LVSOD\PHQXLVVKRZQWKHQWKHRXWSXWVDOOR.DWHGWRWKHIRXUULJKWKDQG
SRVLWLRQVDQGWKHWKUHHXVHUVSH.LILHG.RQWUROV.DQEHVHOH.WHG
:KHQRSHUDWHGYLDWKHLQWHUID.HVWKHIROORZLQJIHDWXUHVDUHDOVRDYDLODEOH
&XUYH6WRUDJH
7KH&XUYH6HOH.WPHQXDOORZVRQO\WKHEDVL.VL[WHHQGDWDW\SHVDVVR.LDWHGZLWKVLQJOH
UHIHUHQ.HDQGYLUWXDOUHIHUHQ.HPRGHVRIRSHUDWLRQWREHVHOH.WHGDOWKRXJKDV
GLV.XVVHGLQVH.WLRQVDQGLQERWKRIWKHGXDOPRGHVDVH.RQGVHWRIRXWSXWVLV
JHQHUDWHGE\WKHLQVWUXPHQW,ILWLVUHTXLUHGWRVWRUHWKHVHDGGLWLRQDORXWSXWVLQWKH
LQVWUXPHQWVLQWHUQDOSRLQWPHPRU\WKHQWKLV.DQRQO\EHGRQHXVLQJ.RPSXWHU
.RPPDQGV
&XUYH'LVSOD\
7KH6LQJOHDQG'RXEOH*UDSKPHQXVDOORZRQO\WKHGLVSOD\RIVWRUHG.XUYHVRIWKH
VL[WHHQGDWDW\SHVDVVR.LDWHGZLWKVLQJOHUHIHUHQ.HPRGH,IWKHDGGLWLRQDO.XUYHV
JHQHUDWHGE\WKHWZRGXDOPRGHVDUHVWRUHGWKHQWKHVHPXVWEHWUDQVIHUUHGWRWKH
.RPSXWHUIRUGLVSOD\RUSUR.HVVLQJ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 134/217
&KDSWHU&20387(523(5$7,21
56DQG*3,%2SHUDWLRQ
,QWURGX.WLRQ
&RQWURORIWKHOR.NLQDPSOLILHUIURPD.RPSXWHULVD..RPSOLVKHGE\PHDQVRI
.RPPXQL.DWLRQVRYHUWKH56RU*3,%LQWHUID.HV7KH.RPPXQL.DWLRQD.WLYLW\
.RQVLVWVRIWKH.RPSXWHUVHQGLQJ.RPPDQGVWRWKHOR.NLQDPSOLILHUDQGWKHOR.NLQ
DPSOLILHUUHVSRQGLQJHLWKHUE\VHQGLQJED.NVRPHGDWDRUE\.KDQJLQJWKHVHWWLQJRI
RQHRILWV.RQWUROV7KH.RPPDQGVDQGUHVSRQVHVDUHHQ.RGHGLQVWDQGDUGELW$6&,,
IRUPDWZLWKRQHRUPRUHDGGLWLRQDOELWVDVUHTXLUHGE\WKHLQWHUID.HVHHEHORZ
7KHWZRSRUWV.DQQRWEHXVHGVLPXOWDQHRXVO\EXWZKHQD.RPPDQGKDVEHHQ
.RPSOHWHGWKHOR.NLQDPSOLILHUZLOOD..HSWD.RPPDQGDWHLWKHUSRUW$OVRZKHQWKH
WHVWH.KRID.LOLW\KDVEHHQD.WLYDWHGDOORXWSXWIURPWKH.RPSXWHUWRWKH*3,%.DQEH
PRQLWRUHGE\DWHUPLQDODWWD.KHGWRWKH56.RQQH.WRU
$OWKRXJKWKHLQWHUID.HLVSULPDULO\LQWHQGHGWRHQDEOHWKHOR.NLQDPSOLILHUWREH
RSHUDWHGE\D.RPSXWHUSURJUDPVSH.LDOO\ZULWWHQIRUDQDSSOL.DWLRQLW.DQDOVREHXVHGLQWKHGLUH.WRUWHUPLQDOPRGH,QWKLVPRGHWKHXVHUHQWHUV.RPPDQGVRQD
NH\ERDUGDQGUHDGVWKHUHVXOWVRQDYLGHRV.UHHQ
7KHVLPSOHVWZD\WRHVWDEOLVKWKHWHUPLQDOPRGHLVWR.RQQH.WDVWDQGDUGWHUPLQDORUD
WHUPLQDOHPXODWRUWRWKH56SRUW$WHUPLQDOHPXODWRULVD.RPSXWHUZKL.KUXQV
VSH.LDOSXUSRVHVRIWZDUHWKDWPDNHVLWD.WDVDWHUPLQDO,QWKHGHIDXOWSRZHUXS
VWDWHRIWKHSRUWWKHOR.NLQDPSOLILHUVHQGVD.RQYHQLHQWSURPSW.KDUD.WHUZKHQLWLV
UHDG\WRUH.HLYHD.RPPDQGDQGH.KRHVHD.K.KDUD.WHUWKDWLVUH.HLYHG
0L.URVRIW:LQGRZVLQ.OXGHVDSURJUDP.DOOHG+\SHU7HUPLQDOXVXDOO\WREH
IRXQGLQWKH$..HVVRULHVJURXSZKL.K.DQEHXVHGDVDWHUPLQDOHPXODWRU
$OWHUQDWLYHO\DVLPSOHWHUPLQDOSURJUDPZLWKPLQLPDOID.LOLWLHV.DQEHZULWWHQLQDIHZOLQHVRI%$6,&.RGHVHHDSSHQGL[&
56,QWHUID.H*HQHUDO)HDWXUHV
7KH56LQWHUID.HLQWKHPRGHOLVLPSOHPHQWHGZLWKWKUHHZLUHVRQH.DUULHV
GLJLWDOWUDQVPLVVLRQVIURPWKH.RPSXWHUWRWKHOR.NLQDPSOLILHUWKHVH.RQG.DUULHV
GLJLWDOWUDQVPLVVLRQVIURPWKHOR.NLQDPSOLILHUWRWKH.RPSXWHUDQGWKHWKLUGLVWKH
/RJL.*URXQGWRZKL.KERWKVLJQDOVDUHUHIHUUHG7KHORJL.OHYHOVDUH9UHIHUUHG
WR/RJL.*URXQGDQGWKH.RQQH.WLRQPD\EHDVWDQGDUG56.DEOHLQ.RQMXQ.WLRQ
ZLWKDQXOOPRGHPRUDOWHUQDWLYHO\PD\EHPDGHXSIURPORZ.RVWJHQHUDOSXUSRVH
.DEOH7KHSLQRXWRIWKH56.RQQH.WRUVDUHVKRZQLQDSSHQGL[%DQG.DEOH
GLDJUDPVVXLWDEOHIRU.RXSOLQJWKHLQVWUXPHQWWRD.RPSXWHUDUHVKRZQLQDSSHQGL['
7KHPDLQDGYDQWDJHVRIWKH56LQWHUID.HDUH
,W.RPPXQL.DWHVYLDDVHULDOSRUWZKL.KLVSUHVHQWDVVWDQGDUGHTXLSPHQWRQQHDUO\
DOO.RPSXWHUVXVLQJOHDGVDQG.RQQH.WRUVZKL.KDUHDYDLODEOHIURPVXSSOLHUVRI
.RPSXWHUD..HVVRULHVRU.DQEH.RQVWUX.WHGDWPLQLPDO.RVWLQWKHXVHUV
ZRUNVKRS
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 135/217
&KDSWHU&20387(523(5$7,21
,WUHTXLUHVQRPRUHVRIWZDUHVXSSRUWWKDQLVQRUPDOO\VXSSOLHGZLWKWKH.RPSXWHU
IRUH[DPSOH0L.URVRIWV*:%$6,&4%$6,&RU:LQGRZV+\SHU7HUPLQDO
$VLQJOH56WUDQVPLVVLRQ.RQVLVWVRIDVWDUWELWIROORZHGE\RUGDWDELWVDQ
RSWLRQDOSDULW\ELWDQGVWRSELW7KHUDWHRIGDWDWUDQVIHUGHSHQGVRQWKHQXPEHURI
ELWVSHUVH.RQGVHQWRYHUWKHLQWHUID.HXVXDOO\.DOOHGWKHEDXGUDWH,QWKHPRGHO
WKHEDXGUDWH.DQEHVHWWRDUDQJHRIGLIIHUHQWYDOXHVXSWR.RUUHVSRQGLQJWRDPLQLPXPWLPHRIOHVVWKDQPVIRUDVLQJOH.KDUD.WHU
0RVWO\IRUKLVWRUL.DOUHDVRQVWKHUHDUHDYHU\ODUJHQXPEHURIGLIIHUHQWZD\VLQZKL.K
56.RPPXQL.DWLRQV.DQEHLPSOHPHQWHG$SDUWIURPWKHEDXGUDWHRSWLRQVWKHUH
DUH.KRL.HVRIGDWDZRUGOHQJWKRUELWVSDULW\.KH.NRSHUDWLRQHYHQRGGRU
QRQHDQGQXPEHURIVWRSELWVRU:LWKWKHH[.HSWLRQRIWKHQXPEHURIVWRSELWV
ZKL.KLVIL[HGDWWKHVHVHWWLQJVPD\EHDGMXVWHGXVLQJWKH566HWWLQJVPHQX
GLV.XVVHGLQ.KDSWHU7KH\PD\DOVREHDGMXVWHGE\PHDQVRIWKH56.RPPDQG
127(,QRUGHUWRD.KLHYHVDWLVID.WRU\RSHUDWLRQWKH56VHWWLQJVPXVWEHVHW
WRH[D.WO\WKHVDPHYDOXHVLQWKHWHUPLQDORU.RPSXWHUDVLQWKHOR.NLQDPSOLILHU
&KRL.HRI%DXG5DWH
:KHUHWKHOR.NLQDPSOLILHULV.RQQH.WHGWRDWHUPLQDORUWRD.RPSXWHULPSOHPHQWLQJ
DQH.KRKDQGVKDNHWKHKLJKHVWDYDLODEOHEDXGUDWHRILVQRUPDOO\XVHGLIDVLV
XVXDOO\WKH.DVHWKLVUDWHLVVXSSRUWHGE\WKHWHUPLQDORU.RPSXWHU/RZHUEDXGUDWHV
PD\EHXVHGLQRUGHUWRD.KLHYH.RPSDWLELOLW\ZLWKROGHUHTXLSPHQWRUZKHUHWKHUHLV
VRPHVSH.LDOUHDVRQIRUUHGX.LQJWKH.RPPXQL.DWLRQUDWH
&KRL.HRI1XPEHURI'DWD%LWV
7KHPRGHOOR.NLQDPSOLILHUXVHVWKHVWDQGDUG$6&,,.KDUD.WHUVHW.RQWDLQLQJ
.KDUD.WHUVUHSUHVHQWHGE\ELWELQDU\ZRUGV,IDQELWGDWDZRUGLVVHOH.WHGWKH
PRVWVLJQLIL.DQWELWLVVHWWR]HURRQRXWSXWIURPWKHOR.NLQDPSOLILHUDQGLJQRUHGRQ
LQSXW7KHUHVXOWLVWKDWHLWKHUWKHELWRUWKHELWRSWLRQPD\EHXVHGEXWWKHELW
RSWLRQ.DQUHVXOWLQVOLJKWO\IDVWHU.RPPXQL.DWLRQ
&KRL.HRI3DULW\&KH.N2SWLRQ
3DULW\.KH.NVDUHQRWUHTXLUHGDWWKHEDXGUDWHVDYDLODEOHLQWKHPRGHOWKDWLVXS
WREDXGZLWKW\SL.DO.DEOHOHQJWKVRIXSWRDIHZPHWHUV7KHUHIRUHQR
VRIWZDUHLVSURYLGHGLQWKHPRGHOIRUGHDOLQJZLWKSDULW\HUURUV:KHUHORQJ
.DEOHVDUHLQXVHLWPD\EHDGYLVDEOHWRPDNHXVHRIDORZHUEDXGUDWH7KHUHVXOWLV
WKDWDQ\RIWKHSDULW\.KH.NRSWLRQVPD\EHXVHGEXWWKHQRSDULW\RSWLRQZLOOUHVXOWLQ
VOLJKWO\IDVWHU.RPPXQL.DWLRQ
:KHUHWKH56SDUDPHWHUVRIWKHWHUPLQDORU.RPSXWHUDUH.DSDEOHRIEHLQJVHWWR
DQ\GHVLUHGYDOXHDQDUELWUDU\.KRL.HPXVWEHPDGH,QWKHPRGHOWKH
.RPELQDWLRQVHWDWWKHID.WRU\LVHYHQSDULW\.KH.NGDWDELWVDQGRQHVWRSELWIL[HG
EH.DXVHWKHVHDUHWKH06'26GHIDXOWV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 136/217
&KDSWHU&20387(523(5$7,21
$X[LOLDU\56,QWHUID.H
7KHDX[LOLDU\56LQWHUID.HDOORZVXSWRVL[WHHQPRGHOVRUDPL[WXUHRI
.RPSDWLEOHLQVWUXPHQWVWREH.RQQH.WHGWRRQHVHULDOSRUWRQWKH.RPSXWHU7KHILUVW
OR.NLQDPSOLILHULV.RQQH.WHGWRWKH.RPSXWHULQWKHXVXDOZD\$GGLWLRQDOOR.NLQ
DPSOLILHUVDUH.RQQH.WHGLQDGDLV\.KDLQIDVKLRQXVLQJQXOOPRGHP.DEOHVWKH$8;
56SRUWRIWKHILUVWWRWKH56SRUWRIWKHVH.RQGWKH$8;56SRUWRIWKHVH.RQGWRWKH56SRUWRIWKHWKLUGHW.7KHDGGUHVVRIWKHOR.NLQDPSOLILHUVPXVW
EHVHWXSIURPWKHIURQWSDQHOEHIRUHDQ\.RPPXQL.DWLRQWDNHVSOD.H$WSRZHUXSWKH
56SRUWRIHD.KOR.NLQDPSOLILHULVIXOO\D.WLYHLUUHVSH.WLYHRILWVDGGUHVV6LQ.H
WKLVPHDQVWKDWDOOOR.NLQDPSOLILHUVLQWKHGDLV\.KDLQDUHD.WLYHRQSRZHUXSWKH
ILUVW.RPPDQGPXVWEH?1QZKHUHQLVWKHDGGUHVVRIRQHRIWKHOR.NLQDPSOLILHUV
7KLVZLOOGHVHOH.WDOOEXWWKHDGGUHVVHGOR.NLQDPSOLILHU:KHQLWLVUHTXLUHGWR
.RPPXQL.DWHZLWKDQRWKHUOR.NLQDPSOLILHUVHQGDQHZ?1Q.RPPDQGXVLQJWKH
UHOHYDQWDGGUHVV
127(:KHQSURJUDPPLQJLQ&UHPHPEHUWKDWLQRUGHUWRVHQGWKH.KDUD.WHU?LQ
DVWULQJLWLVQH.HVVDU\WRW\SHLQ??
*3,%,QWHUID.H*HQHUDO)HDWXUHV
7KH*3,%LVDSDUDOOHOGLJLWDOLQWHUID.HZLWKELGLUH.WLRQDOGDWDOLQHVDQGIXUWKHU
OLQHVZKL.KLPSOHPHQWDGGLWLRQDO.RQWURODQG.RPPXQL.DWLRQIXQ.WLRQV
&RPPXQL.DWLRQLVWKURXJKZLUH.DEOHVLQ.OXGLQJJURXQG.RQQH.WLRQVZLWK
VSH.LDOSXUSRVH.RQQH.WRUVZKL.KDUH.RQVWUX.WHGLQVX.KDZD\WKDWWKH\.DQEH
VWD.NHGRQWRSRIRQHDQRWKHUWRHQDEOHQXPHURXVLQVWUXPHQWVWREH.RQQH.WHGLQ
SDUDOOHO%\PHDQVRILQWHUQDOKDUGZDUHRUVRIWZDUHVZLW.KHVHD.KLQVWUXPHQWLVVHWWR
DGLIIHUHQWDGGUHVVRQWKHEXVXVXDOO\DQXPEHULQWKHUDQJHWR,QWKHPRGHO
WKHDGGUHVVLVVHWXVLQJWKH*3,%6HWWLQJVPHQXRUE\PHDQVRIWKH*3
.RPPDQG
$PRVWLPSRUWDQWDVSH.WRIWKH*3,%LVWKDWLWVRSHUDWLRQLVGHILQHGLQPLQXWHGHWDLOE\
WKH,(((VWDQGDUGXVXDOO\LPSOHPHQWHGE\VSH.LDOSXUSRVHVHPL.RQGX.WRU
GHYL.HVWKDWDUHSUHVHQWLQHD.KLQVWUXPHQWDQG.RPPXQL.DWHZLWKWKHLQVWUXPHQWV
PL.URSUR.HVVRU7KHH[LVWHQ.HRIWKLVVWDQGDUGJUHDWO\VLPSOLILHVWKHSUREOHPRI
SURJUDPPLQJWKHEXV.RQWUROOHULHWKH.RPSXWHUWRLPSOHPHQW.RPSOH[PHDVXUHPHQW
DQGWHVWV\VWHPVLQYROYLQJWKHLQWHUD.WLRQRIQXPHURXVLQVWUXPHQWV7KHUHDUHIHZHU
LQWHUID.HSDUDPHWHUVWREHVHWWKDQZLWK56.RPPXQL.DWLRQV
7KHRSHUDWLRQRIWKH*3,%UHTXLUHVWKH.RPSXWHUWREHHTXLSSHGZLWKVSH.LDOSXUSRVH
KDUGZDUHXVXDOO\LQWKHIRUPRIDSOXJLQ.DUGDQGDVVR.LDWHGVRIWZDUHZKL.KHQDEOH
LWWRD.WDVDEXV.RQWUROOHU7KH.RQWUROSURJUDPLVZULWWHQLQDKLJKOHYHOODQJXDJHXVXDOO\%$6,&RU&.RQWDLQLQJDGGLWLRQDOVXEURXWLQHVLPSOHPHQWHGE\VRIWZDUH
VXSSOLHGE\WKHPDQXID.WXUHURIWKHLQWHUID.H.DUG
%H.DXVHRIWKHSDUDOOHOQDWXUHRIWKH*3,%DQGLWVYHU\HIIH.WLYHXVHRIWKH.RQWURO
OLQHVLQ.OXGLQJWKHLPSOHPHQWDWLRQRIDWKUHHZLUHKDQGVKDNHVHHEHORZ
.RPSDUDWLYHO\KLJKGDWDUDWHVXSWRDIHZKXQGUHGWKRXVDQGE\WHVSHUVH.RQGDUH
SRVVLEOH,QW\SL.DOVHWXSVWKHGDWDUDWHRIWKH*3,%LWVHOILVQRWWKHID.WRUWKDWOLPLWV
WKHUDWHRIRSHUDWLRQRIWKH.RQWUROSURJUDP
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 137/217
&KDSWHU&20387(523(5$7,21
+DQGVKDNLQJDQG(.KRHV
$KDQGVKDNHLVDPHWKRGRIHQVXULQJWKDWWKHWUDQVPLWWHUGRHVQRWVHQGDE\WHXQWLOWKH
UH.HLYHULVUHDG\WRUH.HLYHLWDQGLQWKH.DVHRIDSDUDOOHOLQWHUID.HWKDWWKHUH.HLYHU
UHDGVWKHGDWDOLQHVRQO\ZKHQWKH\.RQWDLQDYDOLGE\WH
*3,%+DQGVKDNLQJ7KH*3,%LQWHUID.HLQ.OXGHVWKUHHOLQHV'$915)'1'$&ZKL.KDUHXVHGWR
LPSOHPHQWDWKUHHZLUHKDQGVKDNH7KHRSHUDWLRQRIWKLVLV.RPSOHWHO\GHILQHGE\WKH
,(((VWDQGDUGDQGLVIXOO\DXWRPDWL.VRWKDWWKHXVHUGRHVQRWQHHGWRNQRZ
DQ\WKLQJDERXWWKHKDQGVKDNHZKHQZULWLQJSURJUDPVIRUWKH*3,%1RWHWKDWHD.K
.RPPDQGPXVWEH.RUUH.WO\WHUPLQDWHG
56+DQGVKDNLQJ
,QWKH56VWDQGDUGWKHUHDUHVHYHUDO.RQWUROOLQHV.DOOHGKDQGVKDNHOLQHV576
'75RXWSXWVDQG&76'65'&'LQSXWVLQDGGLWLRQWRWKHGDWDOLQHV7'RXWSXW
DQG5'LQSXW+RZHYHUWKHVHOLQHVDUHQRW.DSDEOHRILPSOHPHQWLQJWKHKDQGVKDNLQJ
IXQ.WLRQUHTXLUHGE\WKHPRGHORQDE\WHE\E\WHEDVLVDQGDUHQRW.RQQH.WHGLQ
WKHPRGHODSDUWIURPWKH576DQG'75RXWSXWVZKL.KDUH.RQVWDQWO\DVVHUWHG
1RWHWKDWVRPH.RPSXWHUDSSOL.DWLRQVUHTXLUHRQHRUPRUHRIWKH.RPSXWHUV56
KDQGVKDNHOLQHVWREHDVVHUWHG,IWKLVLVWKH.DVHDQGLIWKHUHTXLUHPHQW.DQQRWEH
.KDQJHGE\WKHXVHRIDVRIWZDUHVZLW.KWKH.DEOHPD\EHXVHGLQ.RQMXQ.WLRQZLWKD
QXOOPRGHP$QXOOPRGHPLVDQDGDSWHUZKL.K.RQQH.WV7'RQHD.KVLGHWKURXJKWR
5'RQWKHRWKHUVLGHDQGDVVHUWV&76'65DQG'&'RQHD.KVLGHZKHQ576DQG
'75DUHDVVHUWHGRQWKHRSSRVLWHVLGHV
:LWKPRVWPRGHUQVRIWZDUHWKHUHLVQRQHHGWRDVVHUWDQ\56KDQGVKDNHOLQHVDQG
DVLPSOHWKUHHZLUH.RQQH.WLRQ.DQEHXVHG7KHD.WXDOKDQGVKDNHIXQ.WLRQLV
SHUIRUPHGE\PHDQVRIE\WHVWUDQVPLWWHGRYHUWKHLQWHUID.H
7KHPRUH.ULWL.DOKDQGVKDNHLVWKHRQH.RQWUROOLQJWKHWUDQVIHURID.RPPDQGIURPWKH
.RPSXWHUWRWKHOR.NLQDPSOLILHUEH.DXVHWKH.RPSXWHUW\SL.DOO\RSHUDWHVPX.KIDVWHU
WKDQWKHOR.NLQDPSOLILHUDQGE\WHV.DQHDVLO\EHORVWLIWKH.RPPDQGLVVHQWIURPD
SURJUDP1RWHWKDWEH.DXVHRIWKHOLPLWHGVSHHGRIKXPDQW\SLQJWKHUHLVQRSUREOHP
LQWKHWHUPLQDOPRGH7RRYHU.RPHWKHSUREOHPDQH.KRKDQGVKDNHLVXVHG7KLV
ZRUNVLQWKHIROORZLQJZD\DIWHUUH.HLYLQJHD.KE\WHWKHOR.NLQDPSOLILHUVHQGVED.N
DQH.KRWKDWLVDE\WHZKL.KLVD.RS\RIWKHRQHWKDWLWKDVMXVWUH.HLYHGWRLQGL.DWH
WKDWLWLVUHDG\WRUH.HLYHWKHQH[WE\WH&RUUHVSRQGLQJO\WKH.RPSXWHUGRHVQRWVHQG
WKHQH[WE\WHXQWLOLWKDVUHDGWKHH.KRRIWKHSUHYLRXVRQH8VXDOO\WKH.RPSXWHU
PDNHVD.RPSDULVRQRIHD.KE\WHZLWKLWVH.KRDQGWKLV.RQVWLWXWHVDXVHIXO.KH.NRQ
WKHYDOLGLW\RIWKH.RPPXQL.DWLRQV
:KHUHWKHH.KRLVQRWUHTXLUHGLW.DQEHVXSSUHVVHGE\QHJDWLQJELWLQWKH56
SDUDPHWHUE\WH7KHGHIDXOWSRZHUXSVWDWHRIWKLVELWLVIRULWWREHDVVHUWHG
7KHSURJUDP56&20%$6LQVH.WLRQ&LOOXVWUDWHVWKHXVHRIWKHH.KRKDQGVKDNH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 138/217
&KDSWHU&20387(523(5$7,21
7HUPLQDWRUV
,QRUGHUIRU.RPPXQL.DWLRQVWREHVX..HVVIXOO\HVWDEOLVKHGEHWZHHQWKHOR.NLQ
DPSOLILHUDQGWKH.RPSXWHULWLVHVVHQWLDOWKDWHD.KWUDQVPLVVLRQLH.RPPDQGRU
.RPPDQGUHVSRQVHLVWHUPLQDWHGLQDZD\ZKL.KLVUH.RJQL]DEOHE\WKH.RPSXWHUDQG
WKHOR.NLQDPSOLILHUDVVLJQLI\LQJWKHHQGRIWKDWWUDQVPLVVLRQ
,QWKHPRGHOWKHUHDUHWKUHHLQSXWWHUPLQDWLRQRSWLRQVIRU*3,%.RPPXQL.DWLRQV
VHOH.WHGIURPWKHIURQWSDQHOXQGHUWKH*3,%6HWWLQJVPHQXRUE\PHDQVRIWKH*3
.RPPDQG7KHOR.NLQDPSOLILHUPD\EHVHWWRH[SH.WWKH&5!E\WH$6&,,RU
WKH&5/)!VHTXHQ.H$6&,,IROORZHGE\$6&,,WREHDSSHQGHGE\WKH
.RQWUROOHUDVDWHUPLQDWRUWRWKHHQGRIHD.K.RPPDQG$OWHUQDWLYHO\LQVWHDGRID
WHUPLQDWRULWPD\H[SH.WWKH(2,VLJQDOOLQHSLQRQWKH*3,%.RQQH.WRUWREH
DVVHUWHGGXULQJWKHWUDQVPLVVLRQRIWKHODVW.KDUD.WHURIWKH.RPPDQG7KHWKLUGRSWLRQ
LVQRUPDOO\WREHSUHIHUUHGZLWKPRGHUQLQWHUID.H.DUGVZKL.K.DQHDVLO\EHVHWWRD
ZLGHYDULHW\RI.RQILJXUDWLRQV
7KHVHOH.WHG*3,%WHUPLQDWLRQRSWLRQDSSOLHVDOVRWRWKHRXWSXWWHUPLQDWLRQRIDQ\
UHVSRQVHVVHQWED.NE\WKHOR.NLQDPSOLILHUWRWKH.RQWUROOHULHWKHOR.NLQDPSOLILHU ZLOOVHQG&5!RU&5/)!RUQRE\WHDVDSSURSULDWH,QDOO.DVHVWKHOR.NLQ
DPSOLILHUDVVHUWVWKH(2,VLJQDOOLQHGXULQJWKHWUDQVPLVVLRQRIWKHODVWE\WHRID
UHVSRQVH
,Q56.RPPXQL.DWLRQVWKHOR.NLQDPSOLILHUDXWRPDWL.DOO\D..HSWVHLWKHU&5!RU
&5/)!DVDQLQSXW.RPPDQGWHUPLQDWRUDQGVHQGVRXW&5/)!DVDQRXWSXW
UHVSRQVHWHUPLQDWRUH[.HSWZKHQWKHQRSURPSWELWELWLQWKH56SDUDPHWHUE\WH
LVVHWLQZKL.K.DVHWKHWHUPLQDWRULV&5!7KHGHIDXOWSRZHUXSVWDWHRIWKLVELWLV
]HUR
&RPPDQG)RUPDW7KHVLPSOH.RPPDQGVOLVWHGLQVH.WLRQKDYHRQHRIILYHIRUPV
&0'1$0(WHUPLQDWRU
&0'1$0(QWHUPLQDWRU
&0'1$0(>Q@WHUPLQDWRU
&0'1$0(>Q>Q@@WHUPLQDWRU
&0'1$0(Q>Q@WHUPLQDWRU
ZKHUH&0'1$0(LVDQDOSKDQXPHUL.VWULQJWKDWGHILQHVWKH.RPPDQGDQGQQQ
DUHSDUDPHWHUVVHSDUDWHGE\VSD.HV:KHQQLVQRWHQ.ORVHGLQVTXDUHEUD.NHWVLWPXVW
EHVXSSOLHG>Q@PHDQVWKDWQLVRSWLRQDO>Q>Q@@PHDQVWKDWQLVRSWLRQDODQGLI SUHVHQWPD\RSWLRQDOO\EHIROORZHGE\Q8SSHU.DVHDQGORZHU.DVH.KDUD.WHUVDUH
HTXLYDOHQW7HUPLQDWRUE\WHVDUHGHILQHGLQVH.WLRQ
:KHUHWKH.RPPDQGV\QWD[LQ.OXGHVRSWLRQDOSDUDPHWHUVDQGWKH.RPPDQGLV
VHQWZLWKRXWWKHRSWLRQDOSDUDPHWHUVWKHUHVSRQVH.RQVLVWVRIDWUDQVPLVVLRQRI
WKHSUHVHQWYDOXHVRIWKHSDUDPHWHUV
$Q\UHVSRQVHWUDQVPLVVLRQ.RQVLVWVRIRQHRUPRUHQXPEHUVIROORZHGE\DUHVSRQVH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 139/217
&KDSWHU&20387(523(5$7,21
WHUPLQDWRU:KHUHWKHUHVSRQVH.RQVLVWVRIWZRRUPRUHQXPEHUVLQVX..HVVLRQWKH\
DUHVHSDUDWHGE\DGHOLPLWHUVH.WLRQ
6RPH.RPPDQGVKDYHDQRSWLRQDOIORDWLQJSRLQWPRGHZKL.KLVLQYRNHGE\DSSHQGLQJ
DIXOOVWRS.KDUD.WHUWRWKHHQGRIWKH.RPPDQGDQGEHIRUHWKHSDUDPHWHUV7KLV
DOORZVVRPHSDUDPHWHUVWREHHQWHUHGRUUHDGLQIORDWLQJSRLQWIRUPDW7KHIORDWLQJ
SRLQWRXWSXWIRUPDWLVJLYHQEHORZ
(
7KHQXPEHURIGLJLWVEHWZHHQWKHGH.LPDOSRLQWDQGWKHH[SRQHQWYDULHVGHSHQGLQJRQ
WKHQXPEHUEXWLVDPLQLPXPRIRQHDQGDPD[LPXPRIHLJKW7KHLQSXWIRUPDWLVQRW
DVVWUL.WEXWLIDGH.LPDOSRLQWLVXVHGWKHUHPXVWEHDGLJLWEHIRUHLW$QH[SRQHQWLV
RSWLRQDO7KHIROORZLQJDUHDOOOHJDO.RPPDQGVIRUVHWWLQJWKHRV.LOODWRUIUHTXHQ.\WR
+]
2)
2)(
2)(
2)(
'HOLPLWHUV
0RVWUHVSRQVHWUDQVPLVVLRQV.RQVLVWRIRQHRUWZRQXPEHUVIROORZHGE\DUHVSRQVH
WHUPLQDWRU:KHUHWKHUHVSRQVHRIWKHOR.NLQDPSOLILHU.RQVLVWVRIWZRQXPEHUVLQ
VX..HVVLRQWKH\DUHVHSDUDWHGE\DE\WH.DOOHGDGHOLPLWHU7KLVGHOLPLWHU.DQEHDQ\
SULQWLQJ$6&,,.KDUD.WHUDQGLVVHOH.WHGYLDWKH566HWWLQJVPHQXRUE\WKHXVHRI
WKH''.RPPDQG
&RPSRXQG&RPPDQGV$.RPSRXQG.RPPDQG.RQVLVWVRIWZRRUPRUHVLPSOH.RPPDQGVVHSDUDWHGE\
VHPL.RORQV$6&,,DQGWHUPLQDWHGE\DVLQJOH.RPPDQGWHUPLQDWRU,IDQ\RIWKH
UHVSRQVHVLQYROYHGDWDWUDQVPLVVLRQVHD.KRQHLVIROORZHGE\DQRXWSXWWHUPLQDWRU
6WDWXV%\WH3URPSWVDQG2YHUORDG%\WH
$QLPSRUWDQWIHDWXUHRIWKH,(((VWDQGDUGLVWKHVHULDOSROORSHUDWLRQE\ZKL.KD
VSH.LDOE\WHWKHVWDWXVE\WHPD\EHUHDGDWDQ\WLPHIURPDQ\LQVWUXPHQWRQWKHEXV
7KLV.RQWDLQVLQIRUPDWLRQZKL.KPXVWEHXUJHQWO\.RQYH\HGIURPWKHLQVWUXPHQWWRWKH
.RQWUROOHU
7KHIXQ.WLRQRIWKHLQGLYLGXDOELWVLQWKHVWDWXVE\WHLVLQVWUXPHQWGHSHQGHQWDSDUW
IURPELWWKHUHTXHVWVHUYL.HELWZKRVHIXQ.WLRQVDUHGHILQHGE\WKHVWDQGDUG
,QWKHPRGHOELWVDQGVLJQLI\.RPPDQG.RPSOHWHDQGGDWDDYDLODEOH
UHVSH.WLYHO\,Q*3,%.RPPXQL.DWLRQVWKHXVHRIWKHVHELWV.DQOHDGWRDXVHIXO
VLPSOLIL.DWLRQRIWKH.RQWUROSURJUDPE\DOORZLQJWKHXVHRIDVLQJOHVXEURXWLQHZKL.K
LVWKHVDPHIRUDOO.RPPDQGVZKHWKHURUQRWWKH\VHQGDUHVSRQVHRYHUWKHEXV7KH
VXEURXWLQHVKRXOG.DUU\RXWWKHIROORZLQJVHTXHQ.HRIHYHQWV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 140/217
&KDSWHU&20387(523(5$7,21
6HQGWKH.RPPDQG
3HUIRUPUHSHDWHGVHULDOSROORSHUDWLRQVLQDORRSXQWLOELW.RPPDQG.RPSOHWHLV
]HUR7KLVLPSOLHVWKDWWKH.RPPDQGKDVEHHQUH.HLYHGE\WKHLQVWUXPHQWDQGLV
EHLQJSUR.HVVHG+RZHYHULWLVSRVVLEOHWKDWLIWKH.RPPDQGZHUHDZULWHRQO\
.RPPDQGDQGDVORZ.RPSXWHUZHUHEHLQJXVHGWKHQWKHLQVWUXPHQWPD\D.WXDOO\
.OHDUDQGWKHQUHVHWELWLHD.WXDOO\.RPSOHWHWKH.RPPDQGEHIRUHWKHILUVWVHULDOSROORSHUDWLRQZHUHH[H.XWHG+HQ.HWKHORRSPXVWLQ.OXGHWKHSURYLVLRQWR
WLPHRXWXQGHUWKHVH.RQGLWLRQVDYDOXHRIPVVKRXOGEHVDWLVID.WRU\LQPRVW
.DVHV
,IELW.OHDUVSHUIRUPUHSHDWHGVHULDOSROOVWHVWLQJERWKELWDQGELWGDWD
DYDLODEOHDQGLIELWLVDVVHUWHGWKHQSHUIRUPDUHDGRSHUDWLRQ7KLV.\.OHLH
WHVWELW.RPPDQG.RPSOHWHDQGWHVWELWGDWDDYDLODEOHVKRXOGWKHQ.RQWLQXH
XQWLOWKHOR.NLQDPSOLILHUDVVHUWVELWWRLQGL.DWHWKDWWKH.RPPDQGUHVSRQVH
VHTXHQ.HLV.RPSOHWHVRWKDWWKHLQVWUXPHQWZLOOWKHQEHUHDG\IRUWKHQH[W
.RPPDQG
7KLVSUR.HGXUHDOWKRXJKDSSDUHQWO\.RPSOH[GHDOVVX..HVVIXOO\ZLWK.RPSRXQG
.RPPDQGVDQGUHVSRQVHVWRWKH.XUYHWUDQVIHU.RPPDQGV
,Q56.RPPXQL.DWLRQV.RPSDUDWLYHO\UDSLGD..HVVWRWKHVWDWXVE\WHLVSURYLGHG
E\WKHSURPSW.KDUD.WHUZKL.KLVVHQWE\WKHOR.NLQDPSOLILHUDWWKHVDPHWLPHDVELW
EH.RPHVDVVHUWHGLQWKHVWDWXVE\WH7KLV.KDUD.WHULVVHQWRXWE\WKHOR.NLQDPSOLILHU
DIWHUHD.K.RPPDQGUHVSRQVHZKHWKHURUQRWWKHUHVSRQVHLQ.OXGHVDWUDQVPLVVLRQ
RYHUWKHLQWHUID.HWRLQGL.DWHWKDWWKHUHVSRQVHLVILQLVKHGDQGWKHLQVWUXPHQWLVUHDG\
IRUDQHZ.RPPDQG7KHSURPSWWDNHVRQHRIWZRIRUPV,IWKH.RPPDQG.RQWDLQHGDQ
HUURUHLWKHULQV\QWD[RUE\D.RPPDQGSDUDPHWHUEHLQJRXWRIUDQJHRUDOWHUQDWLYHO\
LIDQRYHUORDGRUUHIHUHQ.HXQOR.NLV.XUUHQWO\EHLQJUHSRUWHGE\WKHIURQWSDQHO
LQGL.DWRUVWKHSURPSWLV"$6&,,2WKHUZLVHWKHSURPSWLV$6&,,
7KHVHHUURU.RQGLWLRQV.RUUHVSRQGWRWKHDVVHUWLRQRIELWVRULQWKHVWDWXVE\WH
:KHQWKH"SURPSWLVUH.HLYHGE\WKH.RPSXWHUWKH67.RPPDQGPD\EHLVVXHGLQ
RUGHUWRGLV.RYHUZKL.KW\SHRIIDXOWH[LVWVDQGWRWDNHDSSURSULDWHD.WLRQ
7KHSURPSWVDUHDUDSLGZD\RI.KH.NLQJRQWKHLQVWUXPHQWVWDWXVDQGHQDEOHD
.RQYHQLHQWNH\ERDUG.RQWUROV\VWHPWREHVHWXSVLPSO\E\DWWD.KLQJDVWDQGDUG
WHUPLQDORUDVLPSOH.RPSXWHUEDVHGWHUPLQDOHPXODWRUWRWKH56SRUW:KHUHWKH
SURPSWLVQRWUHTXLUHGLW.DQEHVXSSUHVVHGE\VHWWLQJWKHQRSURPSWELWELWLQWKH
56SDUDPHWHUE\WH7KHGHIDXOWSRZHUXSVWDWHRIWKLVELWLV]HUR
%H.DXVHRIWKHOLPLWHGQXPEHURIELWVLQWKHVWDWXVE\WHLW.DQLQGL.DWHWKDWDQRYHUORDGH[LVWVEXW.DQQRWJLYHPRUHGHWDLO$QDX[LOLDU\E\WHWKHRYHUORDGE\WH
UHWXUQHGE\WKH1.RPPDQGJLYHVGHWDLOVRIWKHOR.DWLRQRIWKHRYHUORDG
$VXPPDU\RIWKHELWDVVLJQPHQWVLQWKHVWDWXVE\WHDQGWKHRYHUORDGE\WHLVJLYHQ
EHORZ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 141/217
&KDSWHU&20387(523(5$7,21
%LW 6WDWXV%\WH 2YHUORDG%\WH
ELW .RPPDQG.RPSOHWH QRWXVHG
ELW LQYDOLG.RPPDQG &+RXWSXWRYHUORDG
ELW .RPPDQGSDUDPHWHUHUURU &+RXWSXWRYHUORDG
ELW UHIHUHQ.HXQOR.N <.KDQQHORXWSXWRYHUORDG
ELW RYHUORDG ;.KDQQHORXWSXWRYHUORDG
ELW QHZ$'&YDOXHVDYDLODEOH QRWXVHGDIWHUH[WHUQDOWULJJHU
ELW DVVHUWHG654 LQSXWRYHUORDG
ELW GDWDDYDLODEOH UHIHUHQ.HXQOR.N
6HUYL.H5HTXHVWV
7KHLQWHUID.HGHILQHGE\WKH,(((VWDQGDUGLQ.OXGHVDOLQHSLQRQWKH
.RQQH.WRU.DOOHGWKH654VHUYL.HUHTXHVWOLQHZKL.KLVXVHGE\WKHLQVWUXPHQWWR
VLJQDOWRWKH.RQWUROOHUWKDWXUJHQWDWWHQWLRQLVUHTXLUHG$WWKHVDPHWLPHWKDWWKH
LQVWUXPHQWDVVHUWVWKH654OLQHLWDOVRDVVHUWVELWLQWKHVWDWXVE\WH7KH.RQWUROOHU
UHVSRQGVE\H[H.XWLQJDVHULDOSROORIDOOWKHLQVWUXPHQWVRQWKHEXVLQWXUQDQGWHVWLQJ
ELWRIWKHVWDWXVE\WHLQRUGHUWRGLV.RYHUZKL.KLQVWUXPHQWZDVUHVSRQVLEOHIRU DVVHUWLQJWKH654OLQH7KHVWDWXVE\WHRIWKDWLQVWUXPHQWLVWKHQIXUWKHUWHVWHGLQ
RUGHUWRGLV.RYHUWKHUHDVRQIRUWKHVHUYL.HUHTXHVWDQGWRWDNHDSSURSULDWHD.WLRQ
,QWKHPRGHOWKHDVVHUWLRQRIWKH654OLQHLVXQGHUWKH.RQWURORIDE\WH.DOOHG
WKH654PDVNE\WHZKL.K.DQEHVHWE\WKHXVHUZLWKWKH06.RPPDQGRUYLDWKH
*3,%6HWWLQJVPHQX,IDQ\ELWLQWKHVWDWXVE\WHEH.RPHVDVVHUWHGDQGWKH
.RUUHVSRQGLQJELWLQWKHPDVNE\WHKDVDQRQ]HURYDOXHWKH654OLQHLVDXWRPDWL.DOO\
DVVHUWHG,IWKHYDOXHRIWKHPDVNE\WHLV]HURWKH654OLQHLVQHYHUDVVHUWHG
+HQ.HIRUH[DPSOHLIWKH654PDVNE\WHLVVHWWRDVHUYL.HUHTXHVWZRXOGEH
JHQHUDWHGDVVRRQDVDQRYHUORDGR..XUUHGLIWKH654PDVNE\WHZHUHVHWWRWKHQ
VHUYL.HUHTXHVWVZRXOGQHYHUEHJHQHUDWHG
&RPPXQL.DWLRQ0RQLWRU0HQX
$PRVWXVHIXOIHDWXUHRIWKHPRGHOZKHQWURXEOHVKRRWLQJ.RPPXQL.DWLRQV
SUREOHPVLVWKH&RPPXQL.DWLRQV0RQLWRUPHQXZKL.KLVGHV.ULEHGLQGHWDLOLQVH.WLRQ
+RZHYHURQ.HWKHSUREOHPKDVEHHQUHVROYHGLWLVUH.RPPHQGHGWKDWWKH
LQVWUXPHQWEHUHVHWWR0DLQ'LVSOD\PRGHWRDYRLGVORZLQJGRZQ.RPPXQL.DWLRQV
&RPPDQG'HV.ULSWLRQV
7KLVVH.WLRQOLVWVWKH.RPPDQGVLQORJL.DOJURXSVVRWKDWIRUH[DPSOHDOO.RPPDQGV
DVVR.LDWHGZLWKVHWWLQJ.RQWUROVZKL.KDIIH.WWKHVLJQDO.KDQQHODUHVKRZQWRJHWKHU
$SSHQGL[*JLYHVWKHVDPHOLVWRI.RPPDQGVEXWLQDOSKDEHWL.DORUGHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 142/217
&KDSWHU&20387(523(5$7,21
6LJQDO&KDQQHO
,02'(>Q@ &XUUHQW9ROWDJHPRGHLQSXWVHOH.WRU
7KHYDOXHRIQVHWVWKHLQSXWPRGHD..RUGLQJWRWKHIROORZLQJWDEOH
Q ,QSXWPRGH
&XUUHQWPRGHRIIYROWDJHPRGHLQSXWHQDEOHG 1RUPDO.XUUHQWPRGHHQDEOHG.RQQH.WVLJQDOWR%LQSXW.RQQH.WRU
/RZQRLVH.XUUHQWPRGHHQDEOHG.RQQH.WVLJQDOWR%LQSXW.RQQH.WRU
+LJKEDQGZLGWK.XUUHQWPRGHHQDEOHG.RQQH.WVLJQDOWR%LQSXW.RQQH.WRU
,IQWKHQWKHLQSXW.RQILJXUDWLRQLVGHWHUPLQHGE\WKH902'(.RPPDQG
,IQ!WKHQ.XUUHQWPRGHLVHQDEOHGLUUHVSH.WLYHRIWKH902'(VHWWLQJ
902'(>Q@ 9ROWDJHLQSXW.RQILJXUDWLRQ
7KHYDOXHRIQVHWVXSWKHLQSXW.RQILJXUDWLRQD..RUGLQJWRWKHIROORZLQJWDEOH
Q ,QSXW.RQILJXUDWLRQ
%RWKLQSXWVJURXQGHGWHVWPRGH $LQSXWRQO\
%LQSXWRQO\
$%GLIIHUHQWLDOPRGH
1RWHWKDWWKH,02'(.RPPDQGWDNHVSUH.HGHQ.HRYHUWKH902'(.RPPDQG
&3>Q@ ,QSXW.RQQH.WRU.RXSOLQJPRGH.RQWURO
7KHYDOXHRIQVHWVXSWKHLQSXW.RXSOLQJPRGHD..RUGLQJWRWKHIROORZLQJWDEOH
Q &RXSOLQJPRGH
)DVW 6ORZ
)/2$7>Q@ ,QSXW.RQQH.WRUVKLHOGIORDWJURXQG.RQWURO
7KHYDOXHRIQVHWVWKHLQSXW.RQQH.WRUVKLHOGVZLW.KD..RUGLQJWRWKHIROORZLQJWDEOH
Q 6HOH.WLRQ
*URXQG
)ORDW.RQQH.WHGWRJURXQGYLDDN :UHVLVWRU
6(1>Q@
6(1 )XOOV.DOHVHQVLWLYLW\.RQWURO
7KHYDOXHRIQVHWVWKHIXOOV.DOHVHQVLWLYLW\D..RUGLQJWRWKHIROORZLQJWDEOHGHSHQGLQJRQWKHVHWWLQJRIWKH,02'(.RQWURO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 143/217
&KDSWHU&20387(523(5$7,21
Q IXOOV.DOHVHQVLWLYLW\
,02'( ,02'( ,02'( ,02'(
Q9 I$ QD S$
Q9 I$ QD S$
Q9 I$ QD S$
Q9 I$ QD S$
Q9 I$ QD S$ Q9 I$ QD S$
9 S$ I$ S$
9 S$ I$ S$
9 S$ I$ S$
9 S$ I$ Q$
9 S$ I$ Q$
9 S$ I$ Q$
9 S$ S$ Q$
9 S$ S$ Q$
9 S$ S$ Q$
P9 Q$ S$ Q$
P9 Q$ S$ Q$
P9 Q$ S$ Q$
P9 Q$ S$ $
P9 Q$ S$ $
P9 Q$ S$ $
P9 Q$ Q$ $
P9 Q$ Q$ $
P9 Q$ Q$ $
9 $ Q$ $
)ORDWLQJSRLQWPRGH.DQRQO\EHXVHGIRUUHDGLQJWKHVHQVLWLYLW\ZKL.KLVUHSRUWHGLQ
YROWVRUDPSV)RUH[DPSOHLI,02'(DQGWKHVHQVLWLYLW\LVP9WKH.RPPDQG6(1ZRXOGUHSRUWDQGWKH.RPPDQG6(1ZRXOGUHSRUW(,I,02'(ZDV
.KDQJHGWR6(1ZRXOGVWLOOUHSRUWEXW6(1ZRXOGUHSRUW(
$6 3HUIRUPDQ$XWR6HQVLWLYLW\RSHUDWLRQ
7KHLQVWUXPHQWDGMXVWVLWVIXOOV.DOHVHQVLWLYLW\VRWKDWWKHPDJQLWXGHRXWSXWOLHV
EHWZHHQDQGRIIXOOV.DOH
$60 3HUIRUPDQ$XWR0HDVXUHRSHUDWLRQ
7KHLQVWUXPHQWDGMXVWVLWVIXOOV.DOHVHQVLWLYLW\VRWKDWWKHPDJQLWXGHRXWSXWOLHV
EHWZHHQDQGRIIXOOV.DOHDQGWKHQSHUIRUPVDQDXWRSKDVHRSHUDWLRQWR
PD[LPL]HWKH;.KDQQHORXWSXWDQGPLQLPL]HWKH<.KDQQHORXWSXW
$&*$,1>Q@ $&*DLQ.RQWURO
6HWVWKHJDLQRIWKHVLJQDO.KDQQHODPSOLILHUD..RUGLQJWRWKHIROORZLQJWDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 144/217
&KDSWHU&20387(523(5$7,21
Q $&*DLQ
G%
G%
G%
G%
G%
G% G%
G%
G%
G%
G%
$8720$7,&>Q@ $&*DLQDXWRPDWL..RQWURO
7KHYDOXHRIQVHWVWKHVWDWXVRIWKH$&*DLQ.RQWUROD..RUGLQJWRWKHIROORZLQJWDEOH
Q 6WDWXV
$&*DLQLVXQGHUPDQXDO.RQWUROHLWKHUXVLQJWKHIURQWSDQHORUWKH$&*$,1
.RPPDQG
$XWRPDWL.$&*DLQ.RQWUROLVD.WLYDWHGZLWKWKHJDLQEHLQJDGMXVWHGD..RUGLQJWR
WKHIXOOV.DOHVHQVLWLYLW\VHWWLQJ
/)>QQ@ 6LJQDO.KDQQHOOLQHIUHTXHQ.\UHMH.WLRQILOWHU.RQWURO
7KH/).RPPDQGVHWVWKHPRGHDQGIUHTXHQ.\RIWKHOLQHIUHTXHQ.\UHMH.WLRQQRW.K
ILOWHUD..RUGLQJWRWKHIROORZLQJWDEOHV
Q 6HOH.WLRQ
2II
(QDEOHRU+]QRW.KILOWHU
(QDEOHRU+]QRW.KILOWHU
(QDEOHERWKILOWHUV
Q 1RW.K)LOWHU&HQWHU)UHTXHQ.LHV
+]DQGRU+]
+]DQGRU+]
5HIHUHQ.H&KDQQHO
5()02'(>Q@ 5HIHUHQ.HPRGHVHOH.WRU
7KHYDOXHRIQVHWVWKHUHIHUHQ.HPRGHRIWKHLQVWUXPHQWD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q 0RGH 6LQJOH5HIHUHQ.H9LUWXDO5HIHUHQ.HPRGH
'XDO+DUPRQL.PRGH
'XDO5HIHUHQ.HPRGH
127(:KHQLQHLWKHURIWKHGXDOUHIHUHQ.HPRGHVWKH.RPPDQGVHW.KDQJHVWR
D..RPPRGDWHWKHDGGLWLRQDO.RQWUROV7KHVH.KDQJHVDUHGHWDLOHGLQVH.WLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 145/217
&KDSWHU&20387(523(5$7,21
,(>Q@ 5HIHUHQ.H.KDQQHOVRXU.H.RQWURO,QWHUQDO([WHUQDO
7KHYDOXHRIQVHWVWKHUHIHUHQ.HLQSXWPRGHD..RUGLQJWRWKHIROORZLQJWDEOH
Q 6HOH.WLRQ
,17LQWHUQDO
(;7/2*,&H[WHUQDOUHDUSDQHO77/LQSXW
(;7H[WHUQDOIURQWSDQHODQDORJLQSXW
5()1>Q@ 5HIHUHQ.HKDUPRQL.PRGH.RQWURO
7KHYDOXHRIQVHWVWKHUHIHUHQ.H.KDQQHOWRRQHRIWKH1)PRGHVRUUHVWRUHVLWWRWKH
GHIDXOW)PRGH7KHYDOXHRIQLVLQWKHUDQJHWR
5()3>@>Q@ 5HIHUHQ.HSKDVH.RQWURO
,QIL[HGSRLQWPRGHQVHWVWKHSKDVHLQPLOOLGHJUHHVLQWKHUDQJH
,QIORDWLQJSRLQWPRGHQVHWVWKHSKDVHLQGHJUHHV
$41 $XWR3KDVHDXWRTXDGUDWXUHQXOO
7KHLQVWUXPHQWDGMXVWVWKHUHIHUHQ.HSKDVHWRPD[LPL]HWKH;.KDQQHORXWSXWDQG
PLQLPL]HWKH<.KDQQHORXWSXWVLJQDOV
)54>@ 5HIHUHQ.HIUHTXHQ.\PHWHU
,IWKHOR.NLQDPSOLILHULVLQWKHH[WHUQDOUHIHUHQ.HVRXU.HPRGHVWKH)54.RPPDQG
.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKLIWKHUHIHUHQ.H.KDQQHOLVXQOR.NHGRU
ZLWKWKHUHIHUHQ.HLQSXWIUHTXHQ.\LILWLVOR.NHG
,IWKHOR.NLQDPSOLILHULVLQWKHLQWHUQDOUHIHUHQ.HVRXU.HPRGHLWUHVSRQGVZLWKWKH
IUHTXHQ.\RIWKHLQWHUQDORV.LOODWRU
,QIL[HGSRLQWPRGHWKHIUHTXHQ.\LVLQP+]
,QIORDWLQJSRLQWPRGHWKHIUHTXHQ.\LVLQ+]
/2& 6\VWHPOR.N.RQWURO
8SGDWHVDOOIUHTXHQ.\GHSHQGHQWJDLQDQGSKDVH.RUUH.WLRQSDUDPHWHUV
95/2&>Q@ 9LUWXDOUHIHUHQ.HPRGHOR.N
7KH6HHNRSWLRQRIWKHIUHTXHQ.\VZHHSPRGHPXVWEHXVHGEHIRUHLVVXLQJWKLV
.RPPDQGIRUZKL.KWKHYDOXHRIQKDVWKHIROORZLQJVLJQLIL.DQ.H
Q 0RGH
'LVDEOHVYLUWXDOUHIHUHQ.HPRGH (QWHUVYLUWXDOUHIHUHQ.HPRGHE\HQDEOLQJWUD.NLQJRIWKHVLJQDOIUHTXHQ.\
6LJQDO&KDQQHO2XWSXW)LOWHUV
12,6(02'(>Q@ 1RLVH0HDVXUHPHQW0RGH.RQWURO
7KHYDOXHRIQVHWVWKHQRLVHPHDVXUHPHQWPRGHD..RUGLQJWRWKHIROORZLQJWDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 146/217
&KDSWHU&20387(523(5$7,21
Q )XQ.WLRQ
1RLVHPHDVXUHPHQWPRGHRII
1RLVHPHDVXUHPHQWPRGHRQ
:KHQWKHQRLVHPHDVXUHPHQWPRGHLVWXUQHGRQWKHRXWSXWILOWHUWLPH.RQVWDQWLV
DXWRPDWL.DOO\DGMXVWHGXQWLOLWOLHVLQWKHUDQJHVWRPVLQ.OXVLYHWKH
V\Q.KURQRXVWLPH.RQVWDQW.RQWUROLVWXUQHGRIIDQGWKHRXWSXWILOWHUVORSHLVVHWWRG%R.WDYHLILWKDGSUHYLRXVO\EHHQRUG%R.WDYH
11%8)>Q@ 1RLVH%XIIHU/HQJWK.RQWURO
7KHYDOXHRIQVHWVWKHQRLVHEXIIHUOHQJWKD..RUGLQJWRWKHIROORZLQJWDEOH
Q )XQ.WLRQ
1RLVHEXIIHURII
VH.RQGQRLVHEXIIHU
VH.RQGQRLVHEXIIHU
VH.RQGQRLVHEXIIHU
VH.RQGQRLVHEXIIHU
6/23(>Q@ 2XWSXWORZSDVVILOWHUVORSHUROORII.RQWURO
:KHQWKHIDVWDQDORJRXWSXWPRGHDQG1RLVH0HDVXUHPHQWPRGHDUHWXUQHGRII
)$6702'(DQG12,6(02'(WKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q 6ORSH
G%R.WDYH
G%R.WDYH
G%R.WDYH 7&tV
G%R.WDYH 7&tV
:KHQ
D 7KHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQVLQJOHRUYLUWXDOUHIHUHQ.HPRGHRU
E 1RLVHPHDVXUHPHQWPRGHLVWXUQHG2112,6(02'(
WKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJWDEOH
Q 6ORSH
G%R.WDYH G%R.WDYH
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQGXDOKDUPRQL.RUGXDOUHIHUHQ.HPRGHWKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJ
WDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 147/217
&KDSWHU&20387(523(5$7,21
Q 6ORSH
G%R.WDYH
7&>Q@
7& )LOWHUWLPH.RQVWDQW.RQWURO
7KHYDOXHRIQVHWVWKHRXWSXWILOWHUWLPH.RQVWDQWLQD..RUGDQ.HZLWKWKHIROORZLQJ
WDEOH
)$6702'(
12,6(02'(
)$6702'(
12,6(02'(
)$6702'(
12,6(02'(
)$6702'(
12,6(02'(
Q WLPH.RQVWDQW WLPH.RQVWDQW WLPH.RQVWDQW WLPH.RQVWDQW
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$ V V V V
PV PV PV PV
PV PV PV PV
PV PV PV PV
PV PV PV PV
PV PV 1$ 1$
PV PV 1$ 1$
PV PV 1$ 1$
PV PV 1$ 1$
PV PV 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$ NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
1$PHDQVWKDWQLVDQLOOHJDOYDOXHXQGHUWKHVH.RQGLWLRQV
7KH7&.RPPDQGLVRQO\XVHGIRUUHDGLQJWKHWLPH.RQVWDQWDQGUHSRUWVWKH.XUUHQW
VHWWLQJLQVH.RQGV+HQ.HLID7&.RPPDQGZHUHVHQWDQGWKHQRLVHPHDVXUHPHQW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 148/217
&KDSWHU&20387(523(5$7,21
PRGHZDVWXUQHGRII7&ZRXOGUHSRUWDQG7&ZRXOGUHSRUW(LHVRU
PV
6<1&>Q@ 6\Q.KURQRXVWLPH.RQVWDQW.RQWURO
$WUHIHUHQ.HIUHTXHQ.LHVEHORZ+]LIWKHV\Q.KURQRXVWLPH.RQVWDQWLVHQDEOHG
WKHQWKHD.WXDOWLPH.RQVWDQWRIWKHRXWSXWILOWHUVLVQRWJHQHUDOO\WKHVHOH.WHGYDOXH7
EXWUDWKHUDYDOXHHTXDOWRDQLQWHJHUQXPEHURIUHIHUHQ.H.\.OHV,I7LVJUHDWHUWKDQ.\.OHWKHWLPH.RQVWDQWLVEHWZHHQ7DQG77KHSDUDPHWHUQKDVWKHIROORZLQJ
VLJQLIL.DQ.H
Q (IIH.W
6\Q.KURQRXVWLPH.RQVWDQWGLVDEOHG
6\Q.KURQRXVWLPH.RQVWDQWHQDEOHG
6LJQDO&KDQQHO2XWSXW$PSOLILHUV
;2)>Q>Q@@ ;.KDQQHORXWSXWRIIVHW.RQWURO
7KHYDOXHRIQVHWVWKHVWDWXVRIWKH;RIIVHWID.LOLW\D..RUGLQJWRWKHIROORZLQJWDEOH
Q 6HOH.WLRQ
'LVDEOHVRIIVHW
(QDEOHVRIIVHWID.LOLW\
7KHUDQJHRIQLV.RUUHVSRQGLQJWRIXOOV.DOH
<2)>Q>Q@@ <.KDQQHORXWSXWRIIVHW.RQWURO
7KHYDOXHRIQVHWVWKHVWDWXVRIWKH<RIIVHWID.LOLW\D..RUGLQJWRWKHIROORZLQJWDEOH
Q 6HOH.WLRQ
'LVDEOHVRIIVHWID.LOLW\
(QDEOHVRIIVHWID.LOLW\
7KHUDQJHRIQLV.RUUHVSRQGLQJWRIXOOV.DOH
$;2 $XWR2IIVHW
7KH;DQG<.KDQQHORXWSXWRIIVHWVDUHWXUQHGRQDQGVHWWROHYHOVJLYLQJ]HUR;DQG
<.KDQQHORXWSXWV$Q\.KDQJHVLQWKHLQSXWVLJQDOWKHQDSSHDUDV.KDQJHVDERXW]HUR
LQWKHRXWSXWV
(;>Q@ 2XWSXWH[SDQVLRQ.RQWURO
([SDQGV;DQGRU<.KDQQHORXWSXWVE\DID.WRURI&KDQJHVEDUJUDSKV &+DQG
&+RXWSXWVIXOOV.DOHWRLI;RU<VHOH.WHG7KHYDOXHRIQKDVWKHIROORZLQJVLJQLIL.DQ.H
Q ([SDQGPRGH
2II
([SDQG;
([SDQG<
([SDQG;DQG<
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 149/217
&KDSWHU&20387(523(5$7,21
)$6702'(>Q@$QDORJ2XWSXW0RGH&RQWURO
7KHYDOXHRIQVHWVWKHIDVWDQDORJRXWSXWPRGH.RQWUROD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q )XQ.WLRQ
)DVWPRGHRII
)DVWPRGHRQ
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQWKHDYDLODEOHVHWWLQJVIRUWKH
&+&+DQDORJRXWSXW.RQWUROVDUHUHVWUL.WHGDQGKHQ.HDIIH.WWKHDOORZDEOH
SDUDPHWHUUDQJHIRU&+DQG&+.RPPDQGV,WDOVRUHVWUL.WVWKHDYDLODEOHUDQJHRI
RXWSXWILOWHUVORSHVHWWLQJVOLPLWVWKHIXOOV.DOHVHQVLWLYLW\WRDPD[LPXPRI9
DQGUHVWUL.WVWKHUDQJHRI$&*DLQVHWWLQJVLIWKH$&*DLQ$XWRPDWL..RQWUROLVWXUQHG
RII7KHHIIH.WLVWKDWWKHLQVWUXPHQW¶VG\QDPL.UHVHUYHLVOLPLWHGWRDPD[LPXPYDOXH
RIG%
:KHQIDVWPRGHLVWXUQHGRIIWKHRXWSXWILOWHUWLPH.RQVWDQWLVUHVWUL.WHGWRYDOXHVRI
VDQGORQJHUEXWWKHRWKHUUHVWUL.WLRQVRQRXWSXWILOWHUVORSHVHQVLWLYLW\DQG$&
JDLQDUHUHPRYHG
&+Q>Q@ $QDORJRXWSXW.RQWURO
'HILQHVZKDWRXWSXWVDSSHDURQWKH&+DQG&+.RQQH.WRUVRQWKHUHDUSDQHO
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRII)$6702'(WKHVHOH.WLRQLV
D..RUGLQJWRWKHIROORZLQJWDEOH
Q 6LJQDO
;9)6
<9)6
0DJQLWXGH9)6 3KDVH99
3KDVH99
1RLVH9)6
5DWLRî;$'&
/RJ5DWLRORJu;$'&
(TXDWLRQ
(TXDWLRQ
'XDOPRGHVRQO\
;9)6
<9)6
0DJQLWXGH)6 3KDVH99
3KDVH99
QLV.RPSXOVRU\DQGLVHLWKHUIRU&+RUIRU&+
1RWHQLVRQO\SHUPLWWHGLIWKHQRLVHPHDVXUHPHQWPRGHLVRQ
12,6(02'(RULIWKHSUHVHQWVHWWLQJVRIRXWSXWILOWHUVORSHDQGWLPH.RQVWDQW
DUHZLWKLQWKHSHUPLWWHGUDQJHDQGWKHV\Q.KURQRXVWLPH.RQVWDQW.RQWUROLVRII
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 150/217
&KDSWHU&20387(523(5$7,21
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQVLQJOHRUYLUWXDOUHIHUHQ.HPRGHWKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJWDEOHV
QLH&+RXWSXW
Q 6LJQDO
;9)6
QLH&+RXWSXW
Q 6LJQDO
<9)6
0DJQLWXGH9)6
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQGXDOKDUPRQL.RUGXDOUHIHUHQ.HPRGHWKHVHOH.WLRQLVIL[HGD..RUGLQJWRWKH
IROORZLQJWDEOHV
QLH&+RXWSXW
Q 6LJQDO
;9)6
QLH&+RXWSXW
Q 6LJQDO
;9)6
,QVWUXPHQW2XWSXWV
;>@ ;.KDQQHORXWSXW
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH;GHPRGXODWRU
RXWSXWLQWKHUDQJHIXOOV.DOHEHLQJ
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH;GHPRGXODWRU
RXWSXWLQYROWVRUDPSV
<>@ <.KDQQHORXWSXW
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH<GHPRGXODWRU
RXWSXWLQWKHUDQJHIXOOV.DOHEHLQJ
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH<GHPRGXODWRU
RXWSXWLQYROWVRUDPSV
;<>@ ;<.KDQQHORXWSXWV
(TXLYDOHQWWRWKH.RPSRXQG.RPPDQG;>@<>@
0$*>@ 0DJQLWXGH
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHPDJQLWXGHYDOXH
LQWKHUDQJHWRIXOOV.DOHEHLQJ
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHPDJQLWXGH
YDOXHLQWKHUDQJH(WR(YROWVRU(WR(DPSV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 151/217
&KDSWHU&20387(523(5$7,21
3+$>@ 6LJQDOSKDVH
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVLJQDOSKDVHLQ
.HQWLGHJUHHVLQWKHUDQJH
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVLJQDOSKDVHLQ
GHJUHHV
03>@ 0DJQLWXGHSKDVH
(TXLYDOHQWWRWKH.RPSRXQG.RPPDQG0$*>@3+$>@
57>@ 5DWLRRXWSXW
,QLQWHJHUPRGHWKH57.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWRî;$'&
ZKHUH;LVWKHYDOXHWKDWZRXOGEHUHWXUQHGE\WKH;.RPPDQGDQG$'&LVWKHYDOXH
WKDWZRXOGEHUHWXUQHGE\WKH$'&.RPPDQG
,QIORDWLQJSRLQWPRGHWKH57.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWR;$'&
/5>@ /RJ5DWLRRXWSXW
,QLQWHJHUPRGHWKH/5.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWRîORJ;$'&
ZKHUH;LVWKHYDOXHWKDWZRXOGEHUHWXUQHGE\WKH;.RPPDQGDQG$'&LVWKHYDOXH
WKDWZRXOGEHUHWXUQHGE\WKH$'&.RPPDQG7KHUHVSRQVHUDQJHLVWR
,QIORDWLQJSRLQWPRGHWKH/5.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWR
ORJ;$'&7KHUHVSRQVHUDQJHLVWR
1+=
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVTXDUHURRWRIWKHQRLVHVSH.WUDO
GHQVLW\PHDVXUHGDWWKH<.KDQQHORXWSXWH[SUHVVHGLQYROW+]RUDPSV+]UHIHUUHG
WRWKHLQSXW7KLVPHDVXUHPHQWDVVXPHVWKDWWKH<.KDQQHORXWSXWLV*DXVVLDQZLWK
]HURPHDQ6H.WLRQ7KH.RPPDQGLVRQO\DYDLODEOHLQIORDWLQJSRLQWPRGH
(1%:>@ (TXLYDOHQWQRLVHEDQGZLGWK
,QIL[HGSRLQWPRGHUHSRUWVWKHHTXLYDOHQWQRLVHEDQGZLGWKRIWKHRXWSXWORZSDVV
ILOWHUVDWWKH.XUUHQWWLPH.RQVWDQWVHWWLQJLQPL.URKHUW]
,QIORDWLQJSRLQWPRGHUHSRUWVWKHHTXLYDOHQWQRLVHEDQGZLGWKRIWKHRXWSXWORZSDVV
ILOWHUVDWWKH.XUUHQWWLPH.RQVWDQWVHWWLQJLQKHUW]
11>@ 1RLVHRXWSXW
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHPHDQDEVROXWH
YDOXHRIWKH<.KDQQHORXWSXWLQWKHUDQJHWRIXOOV.DOHEHLQJ,IWKH
PHDQYDOXHRIWKH<.KDQQHORXWSXWLV]HURWKLVLVDPHDVXUHRIWKHRXWSXWQRLVH
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGLQYROWV
'()(48>QQQQQQ@ 'HILQHXVHUHTXDWLRQ
7KH'()(48.RPPDQGLVXVHGWRGHILQHWKHXVHUHTXDWLRQVZKL.KWDNHWKHIROORZLQJ
IRUP
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 152/217
&KDSWHU&20387(523(5$7,21
(TXDWLRQ $ % &
'
± ×
3DUDPHWHUQLVXVHGWRVSH.LI\WKHHTXDWLRQWREHPRGLILHGDQGLVHLWKHUIRU
(TXDWLRQRUIRU(TXDWLRQ
3DUDPHWHUQLVXVHGWRVHWWKHDGGLWLRQVXEWUD.WLRQRSHUDWRULQWKHQXPHUDWRU
D..RUGLQJWRWKHIROORZLQJWDEOH
Q 2SHUDWRU
6XEWUD.WLRQ
$GGLWLRQ
7KHSDUDPHWHUVQQQDQGQVSH.LI\WKHYDULDEOHV$%&DQG'UHVSH.WLYHO\
D..RUGLQJWRWKHIROORZLQJWDEOH
Q 9DULDEOH 5DQJH
;RU; <RU<
0$*RU0$* WR
3+$RU3+$
$'&
$'&
$'&
$'&
& WR
& WR
]HUR
XQLW\
)54 WRLHUHIHUHQ.HIUHTXHQ.\LQP+]
26& WRLHRV.LOODWRUIUHTXHQ.\LQP+]
'XDOPRGHVRQO\
;
<
0$* WR
3+$
(48Q 2XWSXWUHVXOWRIHTXDWLRQRUHTXDWLRQ
7KHYDOXHUHWXUQHGLVWKHRXWSXWRIWKHXVHUHTXDWLRQQRUHTXDWLRQQ
ZKHUHWKHHTXDWLRQVDUHGHILQHGXVLQJWKH(TXDWLRQ6HWXSPHQXVVHHVH.WLRQ7KHSRVVLEOHUDQJHLVVLJQHGELWLQWHJHU
" )DVW'DWD7UDQVIHU.RPPDQG
7KH".RPPDQGRIIHUVDPHWKRGRIUHDGLQJD.RPELQDWLRQRILQVWUXPHQWRXWSXWVZKL.K
DUHVDPSOHGDWWKHVDPHWLPHWKHUHE\HQVXULQJWKDWWKH\DUH.RUUHODWHG
7KHUHVSRQVHWRWKH".RPPDQGLVWKHRXWSXWVH[SUHVVHGLQIORDWLQJSRLQWPRGH
VSH.LILHGE\WKHSUHVHQWVHWWLQJRIWKH&XUYH%XIIHU'HILQH&%'.RPPDQGVHH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 153/217
&KDSWHU&20387(523(5$7,21
VH.WLRQDQGVHSDUDWHGE\GHOLPLWHU.KDUD.WHUVGHILQHGE\WKH''.RPPDQG
+HQ.HIRUH[DPSOHLI&%'LVVHWWRWKHUHVSRQVHWRWKH".RPPDQGZLOOEH
;RXWSXWLQIORDWLQJSRLQWPRGH!GHOLPLWHU!
<RXWSXWLQIORDWLQJSRLQWPRGH!WHUPLQDWRU!
,QWHUQDO2V.LOODWRU 2$>@>Q@ 2V.LOODWRUDPSOLWXGH.RQWURO
,QIL[HGSRLQWPRGHQVHWVWKHRV.LOODWRUDPSOLWXGHLQPLOOLYROWV7KHUDQJHRIQLVWR
UHSUHVHQWLQJWR9UPV
,QIORDWLQJSRLQWPRGHQVHWVWKHDPSOLWXGHLQYROWV
$67$57>@>Q@ 2V.LOODWRUDPSOLWXGHVZHHSVWDUWDPSOLWXGH
6HWVWKHVWDUWDPSOLWXGHIRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUDPSOLWXGHLQ
WKHUDQJHWR9
,QIL[HGSRLQWPRGHQLVLQPLOOLYROWVUPVDQGLQIORDWLQJSRLQWPRGHQLVLQYROWVUPV
$6723>@>Q@ 2V.LOODWRUDPSOLWXGHVZHHSVWRSDPSOLWXGH
6HWVWKHVWRSDPSOLWXGHIRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUDPSOLWXGHLQ
WKHUDQJHWR9
,QIL[HGSRLQWPRGHQLVLQPLOOLYROWVUPVDQGLQIORDWLQJSRLQWPRGHQLVLQYROWVUPV
$67(3>@>Q@ 2V.LOODWRUDPSOLWXGHVZHHSVWHSVL]H
6HWVWKHDPSOLWXGHVWHSVL]HIRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRU
DPSOLWXGHLQWKHUDQJHWR9
,QIL[HGSRLQWPRGHQLVLQPLOOLYROWVUPVDQGLQIORDWLQJSRLQWPRGHQLVLQYROWVUPV
2)>@>Q@ 2V.LOODWRUIUHTXHQ.\.RQWURO
,QIL[HGSRLQWPRGHQVHWVWKHRV.LOODWRUIUHTXHQ.\LQP+]7KHUDQJHRIQLVWR
UHSUHVHQWLQJWR0+]
,QIORDWLQJSRLQWPRGHQVHWVWKHRV.LOODWRUIUHTXHQ.\LQ+]7KHUDQJHRIQLVWR
(
)67$57>@>Q@ 2V.LOODWRUIUHTXHQ.\VZHHSVWDUWIUHTXHQ.\
6HWVWKHVWDUWIUHTXHQ.\IRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUIUHTXHQ.\LQ
WKHUDQJHWR0+]
,QIL[HGSRLQWPRGHQLVLQPLOOLKHUW]DQGLQIORDWLQJSRLQWPRGHQLVLQKHUW]
)6723>@>Q@ 2V.LOODWRUIUHTXHQ.\VZHHSVWRSIUHTXHQ.\
6HWVWKHVWRSIUHTXHQ.\IRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUIUHTXHQ.\LQ
WKHUDQJHWR0+]
,QIL[HGSRLQWPRGHQLVLQPLOOLKHUW]DQGLQIORDWLQJSRLQWPRGHQLVLQKHUW]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 154/217
&KDSWHU&20387(523(5$7,21
)67(3>@>QQ@ 2V.LOODWRUIUHTXHQ.\VZHHSVWHSVL]HDQGW\SH
7KHIUHTXHQ.\PD\EHVZHSWHLWKHUOLQHDUO\RUORJDULWKPL.DOO\DVVSH.LILHGE\
SDUDPHWHUQ7KHVWHSVL]HLVVSH.LILHGE\SDUDPHWHUQ
/RJVZHHSQ
,QIL[HGSRLQWPRGHQLVWKHVWHSVL]HLQWKRXVDQGWKVRIDSHU.HQW
,QIORDWLQJSRLQWPRGHQLVLQSHU.HQW7KHUDQJHRIQLVWR
/LQHDUVZHHSQ
,QIL[HGSRLQWPRGHQLVWKHVWHSVL]HLQPLOOLKHUW]
,QIORDWLQJSRLQWPRGHQLVLQKHUW]7KHUDQJHRIQLVWRN+]
/LQHDUVHHNVZHHSQ
,QIL[HGSRLQWPRGHQLVWKHVWHSVL]HLQPLOOLKHUW]
,QIORDWLQJSRLQWPRGHQLVLQKHUW]7KHUDQJHRIQLVWRN+]
7KHVHHNVZHHSPRGHDXWRPDWL.DOO\VWRSVZKHQWKHVLJQDOPDJQLWXGHH[.HHGV
RIIXOOV.DOH7KLVPRGHLVPRVW.RPPRQO\XVHGZKHQVHWWLQJXSWKHYLUWXDO
UHIHUHQ.HPRGH
65$7(>@>Q@ 2V.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSVWHSUDWH
6HWVWKHVZHHSUDWHLQWLPHSHUVWHSLQWKHUDQJHPVWRVLQPVLQ.UHPHQWV
6:((3>Q@ 2V.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSVWDUWVWRS
6WDUWVVWRSVWKHLQWHUQDORV.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSVGHSHQGLQJRQWKH
YDOXHRIQD..RUGLQJWRWKHIROORZLQJWDEOH
Q 6ZHHSVWDWXV
6WRS3DXVH
6WDUWIUHTXHQ.\VZHHS
6WDUWDPSOLWXGHVZHHS
6WDUWIUHTXHQ.\VZHHSDQGDPSOLWXGHVZHHS
:KHQDIUHTXHQ.\DQGRUDPSOLWXGHVZHHSKDVEHHQGHILQHGDSSO\LQJ6:((3ZLOO
VWDUWLW7KHVZHHSZLOO.RQWLQXHXQWLOWKHVWRSIUHTXHQ.\RUDPSOLWXGHLVUHD.KHG,I
GXULQJWKHVZHHS6:((3LVDSSOLHGWKHVZHHSZLOOVWRSDWWKH.XUUHQWIUHTXHQ.\,I
6:((3LVWKHQDSSOLHGWKHVZHHSZLOOUHVWDUWIURPWKLVSRLQW2Q.HWKHVZHHS
UHD.KHVWKHVWRSIUHTXHQ.\RUDPSOLWXGHDQGVWRSVWKHQH[W6:((3.RPPDQGZLOO
UHVHWWKHIUHTXHQ.\RUDPSOLWXGHWRWKHVWDUWIUHTXHQ.\RUDPSOLWXGHDQGUHVWDUWWKHVZHHS
$X[LOLDU\2XWSXWV
'$&>@Q>Q@ $X[LOLDU\'$&RXWSXW.RQWUROV
6HWVWKHYROWDJHDSSHDULQJDWWKH'$&DQG'$&RXWSXWVRQWKHUHDUSDQHO
7KHILUVWSDUDPHWHUQZKL.KVSH.LILHVWKH'$&LV.RPSXOVRU\DQGLVHLWKHURU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 155/217
&KDSWHU&20387(523(5$7,21
7KHYDOXHRIQVSH.LILHVWKHYROWDJHWREHRXWSXW
,QIL[HGSRLQWPRGHLWLVDQLQWHJHULQWKHUDQJHWR.RUUHVSRQGLQJWR
YROWDJHVIURP9WR9DQGLQIORDWLQJSRLQWPRGHLWLVLQYROWV
3257',5>Q@ 'LJLWDOSRUWGLUH.WLRQ.RQWURO
7KHYDOXHRIQGHWHUPLQHVZKL.KRIWKHHLJKWOLQHVRQWKHGLJLWDOSRUWDUH.RQILJXUHGDVLQSXWVDQGZKL.KDVRXWSXWVD..RUGLQJWRWKHIROORZLQJWDEOH
Q VWDWXV
$OOOLQHV.RQILJXUHGDVLQSXWV
'RXWSXW''LQSXWV
'DQG'RXWSXWV''LQSXWV
''RXWSXWV''LQSXWV
''RXWSXWV''LQSXWV
''RXWSXWV''LQSXWV
''RXWSXWV'DQG'LQSXWV
''RXWSXWV'LQSXW
$OOOLQHV.RQILJXUHGDVRXWSXWV
%<7(>Q@ 'LJLWDOSRUWRXWSXW.RQWURO
7KHYDOXHRIQLQWKHUDQJHWRGHWHUPLQHVWKHELWVWREHRXWSXWRQWKRVHOLQHVRI
WKHUHDUSDQHOGLJLWDOSRUWWKDWDUH.RQILJXUHGDVRXWSXWV+HQ.HIRUH[DPSOHLI
3257',5DQG%<7(DOORXWSXWVDUHORZDQGZKHQ%<7(DOODUH
KLJK
5($'%<7( 5HDGGLJLWDOSRUWLQSXW
7KHUHVSRQVHWRWKH5($'%<7(.RPPDQGLVDQLQWHJHUEHWZHHQDQG
UHSUHVHQWLQJWKHELQDU\YDOXHRIDOOHLJKWOLQHVRIWKHUHDUSDQHOGLJLWDOSRUW+HQ.HIRU
H[DPSOHLI3257',5DQGWKHUHVSRQVHWR5($'%<7(LVWKHQDOOOLQHVDUHKLJKDQGLIWKHUHVSRQVHWR5($'%<7(LVWKHQDOOOLQHVDUHORZ1RWHWKDWEH.DXVH
WKH.RPPDQGGRHVQRWGLIIHUHQWLDWHEHWZHHQZKHWKHUDOLQHLV.RQILJXUHGDVDQLQSXWRU
RXWSXWLW.DQEHXVHGDVDVLQJOH.RPPDQGWRGHWHUPLQHWKHSUHVHQWVWDWXVRIDOOHLJKW
OLQHVERWKLQSXWVDQGRXWSXWVRIWKHSRUW
$X[LOLDU\,QSXWV
$'&>@Q 5HDGDX[LOLDU\DQDORJWRGLJLWDOLQSXWV
5HDGVWKHYROWDJHDSSHDULQJDWWKH$'&Q$'&Q$'&QRU
$'&QLQSXWVRQWKHUHDUSDQHO
7KHUHVSRQVHLVDQLQWHJHULQWKHUDQJHWR.RUUHVSRQGLQJWRYROWDJHVIURP9WR9DQGLQIORDWLQJSRLQWPRGHLWLVLQYROWV
7$'&>Q@ $X[LOLDU\$'&WULJJHUPRGH.RQWURO
7KHYDOXHRIQVHWVWKHWULJJHUPRGHRIWZRRIWKHDX[LOLDU\$'&LQSXWVD..RUGLQJWR
WKHIROORZLQJWDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 156/217
&KDSWHU&20387(523(5$7,21
Q 7ULJJHUPRGH
$V\Q.KURQRXVPVLQWHUYDOV
([WHUQDO$'&DQG$'&UHDUSDQHO75,*LQSXW
%XUVWPRGHVSRLQWWULJJHUHGE\.RPPDQG$'&RQO\
%XUVWPRGHVSRLQWWULJJHUHGE\.RPPDQG$'&DQG$'&
%XUVWPRGHYDULDEOHUDWHWULJJHUHGE\.RPPDQG$'&RQO\
%XUVWPRGHYDULDEOHUDWHWULJJHUHGE\.RPPDQG$'&DQG$'& %XUVWPRGHVSRLQW([WHUQDOWULJJHUZLWKPVWULJJHULQGHWHUPLQD.\
UHDUSDQHO75,*LQSXW$'&RQO\
%XUVWPRGHVSRLQW([WHUQDOWULJJHUPVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUPVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&RQO\
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUPVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
%XUVWPRGHVSRLQW([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&RQO\
%XUVWPRGHVSRLQW([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&RQO\
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
,QWKHEXUVWPRGHVGDWDLVVWRUHGLQWKH.XUYHEXIIHU8VHWKH/(1.RPPDQGWRVHWWKH
QXPEHURISRLQWVUHTXLUHG1RWHWKDWLWPD\EHQH.HVVDU\WRHQWHU&%'EHIRUH
VHWWLQJWKHOHQJWKLIWKH.XUYHEXIIHUKDVSUHYLRXVO\EHHQXVHGIRUPRUHWKDQRQHGDWD
W\SH7KHGDWDLVUHDGRXWIURPWKHEXIIHUXVLQJ'&>@IRU$'&DQG'&>@IRU
$'&,IWKHOHQJWKLVVHWWRPRUHWKDQDQGDEXUVWPRGHZKL.KVWRUHVERWK
$'&DQG$'&LVVSH.LILHGWKHQWKH.XUYHOHQJWKZLOODXWRPDWL.DOO\EHUHGX.HGWRSRLQWV1RWHDOVRWKDWVHWWLQJWKH7$'&SDUDPHWHUWRDQ\YDOXHRWKHUWKDQRU
DIIH.WVWKH&%'SDUDPHWHUDVIROORZV
7$'&SDUDPHWHU (IIH.WRQ&%'SDUDPHWHU
QRQH
QRQH
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
7KHPD[LPXPVDPSOLQJUDWHGHSHQGVRQWKHQXPEHURI$'&LQSXWVXVHGDQGLVHLWKHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 157/217
&KDSWHU&20387(523(5$7,21
VZKHQVDPSOLQJ$'&RQO\RUVZKHQVDPSOLQJERWK$'&DQG$'&
,QWKH9DULDEOH5DWHPRGHVWKHVDPSOLQJVSHHGLVVHWE\WKH%8567733EXUVWWLPH
SHUSRLQW.RPPDQG
127(7$'&PRGHVWR.DXVHDOORWKHUIXQ.WLRQVRIWKHKRVWPL.URSUR.HVVRU
WREHVXVSHQGHGLQ.OXGLQJUHVSRQGLQJWR.RPSXWHU.RPPDQGVXQWLODWULJJHULV
UH.HLYHGDWWKH75,*LQSXW+HQ.HWKH\VKRXOGRQO\EHXVHGZKHQWKHXVHULV.HUWDLQWKDWVX.KDWULJJHUZLOOR..XU
%8567733>Q@ 6HWVWKHEXUVWPRGHWLPHSHUSRLQWUDWHIRU$'&DQG$'&
QVHWVWKHWLPHSHUSRLQWIRUWKH9DULDEOH5DWHEXUVWPRGHVLQPL.URVH.RQGVDV
IROORZV
:KHQVWRULQJRQO\WR$'&
LH7$'&7$'&7$'&7$'&7$'&DQG7$'&
dQd
:KHQVWRULQJWR$'&DQG$'&LH7$'&7$'&7$'&7$'&7$'&DQG7$'&
dQd
2XWSXW'DWD&XUYH%XIIHU
&%'>Q@ &XUYHEXIIHUGHILQH
'HILQHVZKL.KGDWDRXWSXWVDUHVWRUHGLQWKH.XUYHEXIIHUZKHQVXEVHTXHQW7'WDNH
GDWD7'7WDNHGDWDWULJJHUHGRU7'&WDNHGDWD.RQWLQXRXVO\.RPPDQGVDUH
LVVXHG8SWRRULQGXDOUHIHUHQ.HDQGGXDOKDUPRQL.PRGHV.XUYHVRURXWSXWV
PD\EHD.TXLUHGDVVSH.LILHGE\WKH&%'SDUDPHWHU
7KH&%'SDUDPHWHULVDQLQWHJHUEHWZHHQDQGEHLQJWKHGH.LPDOHTXLYDOHQW
RIDELWELQDU\ZRUG,QHLWKHURIWKHGXDOUHIHUHQ.HPRGHVLWLVDQLQWHJHUEHWZHHQ
DQGEHLQJWKHGH.LPDOHTXLYDOHQWRIDELWELQDU\QXPEHU:KHQD
JLYHQELWLVDVVHUWHGWKH.RUUHVSRQGLQJRXWSXWLVVHOH.WHGIRUVWRUDJH:KHQDELWLV
QHJDWHGWKHRXWSXWLVQRWVWRUHG7KHELWIXQ.WLRQDQGUDQJHIRUHD.KRXWSXWDUHVKRZQ
LQWKHWDEOHEHORZ
%LW 'H.LPDOYDOXH 2XWSXWDQGUDQJH
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6 3KDVH
6HQVLWLYLW\VHWWLQJWR,02'(
1RLVHWR)6
5DWLR)6
/RJUDWLRWR
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 158/217
&KDSWHU&20387(523(5$7,21
%LW 'H.LPDOYDOXH 2XWSXWDQGUDQJH
$'&9
$'&9
$'&9
$'&9
'$&9
'$&9 (9(17YDULDEOHWR
5HIHUHQ.HIUHTXHQ.\ELWVWRPLOOLKHUW]
5HIHUHQ.HIUHTXHQ.\ELWVWRPLOOLKHUW]
'XDOPRGHVRQO\
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6
3KDVH2XWSXW
6HQVLWLYLW\VHWWLQJWR,02'(
SRLQWVDUHDYDLODEOHIRUGDWDVWRUDJHVKDUHGHTXDOO\EHWZHHQWKHVSH.LILHG
.XUYHV)RUH[DPSOHLIRXWSXWVDUHVWRUHGWKHQWKHPD[LPXPQXPEHURIVWRUDJH
SRLQWVZRXOGEHLH7KHRQO\H[.HSWLRQWRWKLVUXOHLVWKDWWKH
)UHTXHQ.\.XUYH.XUYHVDQGR..XSLHVWKHHTXLYDOHQWRIDQ\WZRRWKHU.XUYHV
7KH/(1.RPPDQGVHWVWKHD.WXDO.XUYHOHQJWKZKL.K.DQQRWWKHUHIRUHEHORQJHUWKDQ
GLYLGHGE\WKHQXPEHURI.XUYHVVHOH.WHG,IPRUH.XUYHVDUHUHTXHVWHGWKDQ.DQ
EHVWRUHGZLWKWKH.XUUHQWEXIIHUOHQJWKWKHQWKHEXIIHUOHQJWKZLOOEHDXWRPDWL.DOO\
UHGX.HG,WVD.WXDOOHQJWK.DQRI.RXUVHEHGHWHUPLQHGE\VHQGLQJWKH/(1.RPPDQG
ZLWKRXWDSDUDPHWHU
7KHUHDVRQZK\ELWDQGIRUGXDOUHIHUHQ.HPRGHVELWZKL.KVWRUHERWKWKHVHQVLWLYLW\DQGWKH,02'(VHWWLQJDUHQHHGHGLVWRDOORZWKHLQVWUXPHQWWRWUDQVIHU
WKHD.TXLUHG.XUYHVWRWKH.RPSXWHULQIORDWLQJSRLQWPRGH:LWKRXWWKLVLQIRUPDWLRQ
WKHXQLWZRXOGQRWEHDEOHWRGHWHUPLQHWKH.RUUH.W.DOLEUDWLRQWRDSSO\
1RWHWKDWWKH&%'.RPPDQGGLUH.WO\GHWHUPLQHVWKHDOORZDEOHSDUDPHWHUVIRUWKH'&
'&%DQG'&7.RPPDQGV,WDOVRLQWHUD.WVZLWKWKH/(1.RPPDQGDQGDIIH.WVWKH
YDOXHVUHSRUWHGE\WKH0.RPPDQG
6LQ.HWKHUHIHUHQ.HIUHTXHQ.\UHTXLUHVELWZLGHGDWDSRLQWVLWR..XSLHVWZR.XUYH
SRVLWLRQV)RUHDVHRIXVHLIELWLVVHOH.WHGIRUVWRUDJHWKHQELWZLOOEH
DXWRPDWL.DOO\VHOH.WHGDVZHOODQGYL.HYHUVD
127($WOHDVWRQHRIWKH.XUYHVVHOH.WHGIRUVWRUDJHLQWKH.XUYHEXIIHUPXVWEH
.KRVHQIURPWKRVHPDUNHGZLWKDQDVWHULVNLQWKHDERYHWDEOH
/(1>Q@ &XUYHOHQJWK.RQWURO
7KHYDOXHRIQVHWVWKH.XUYHEXIIHUOHQJWKLQHIIH.WIRUGDWDD.TXLVLWLRQ7KHPD[LPXP
SHUPLWWHGYDOXHGHSHQGVRQWKHQXPEHURI.XUYHVUHTXHVWHGXVLQJWKH&%'.RPPDQG
DQGDSDUDPHWHUHUURUUHVXOWVLIWKHYDOXHJLYHQLVWRRODUJH)RUWKLVUHDVRQLIWKH
QXPEHURISRLQWVLVWREHLQ.UHDVHGDQGWKHQXPEHURI.XUYHVWREHVWRUHGLVWREH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 159/217
&KDSWHU&20387(523(5$7,21
UHGX.HGXVLQJWKH&%'.RPPDQGWKHQWKH&%'.RPPDQGVKRXOGEHLVVXHGILUVW
1& 1HZ.XUYH
,QLWLDOL]HVWKH.XUYHVWRUDJHPHPRU\DQGVWDWXVYDULDEOHV$OOUH.RUGRISUHYLRXVO\
WDNHQ.XUYHVLVUHPRYHG
675>Q@ 6WRUDJHLQWHUYDO.RQWURO6HWVWKHWLPHLQWHUYDOEHWZHHQVX..HVVLYHSRLQWVEHLQJD.TXLUHGXQGHUWKH7'RU7'&
.RPPDQGVQVSH.LILHVWKHWLPHLQWHUYDOLQPVZLWKDUHVROXWLRQRIPVLQSXWYDOXHV
EHLQJURXQGHGXSWRDPXOWLSOHRI7KHORQJHVWLQWHUYDOWKDW.DQEHVSH.LILHGLV
V.RUUHVSRQGLQJWRRQHSRLQWLQDERXWGD\V
,QDGGLWLRQQPD\EHVHWWRZKL.KVHWVWKHUDWHRIGDWDVWRUDJHWRWKH.XUYHEXIIHUWR
PVSRLQW+]+RZHYHUWKLVRQO\DOORZVVWRUDJHRIWKH;DQG<.KDQQHO
RXWSXWV7KHUHLVQRQHHGWRLVVXHD&%'.RPPDQGWRVHWWKLVXSVLQ.HLWKDSSHQV
DXWRPDWL.DOO\ZKHQD.TXLVLWLRQVWDUWV
7' 7DNHGDWD
,QLWLDWHVGDWDD.TXLVLWLRQ$.TXLVLWLRQVWDUWVDWWKH.XUUHQWSRVLWLRQLQWKH.XUYHEXIIHU
DQG.RQWLQXHVDWWKHUDWHVHWE\WKH675.RPPDQGXQWLOWKHEXIIHULVIXOO
7'7Q 7DNHGDWDWULJJHUHG
6HWVWKHLQVWUXPHQWVRWKDWGDWDD.TXLVLWLRQZLOOEHLQLWLDWHGRQUH.HLSWRIDWULJJHUDW
WKH75,*.RQQH.WRURQWKHUHDUSDQHO7ZRWULJJHUHGPRGHVDUHSRVVLEOHDVVHWE\WKH
YDOXHRIQ
Q IXQ.WLRQ
2QH.RPSOHWH.XUYHRUVHWRI.XUYHVHD.KRQH.RQVLVWLQJRIWKHQXPEHURISRLQWV
VSH.LILHGE\WKH/(1.RPPDQGSDUDPHWHULVD.TXLUHGIRUHD.KWULJJHU
2QHGDWDSRLQWRUVHWRIGDWDSRLQWVLVD.TXLUHGIRUHD.KWULJJHU+HQ.HLQRUGHUWRVWRUHD.RPSOHWH.XUYHRUVHWRI.XUYHVWKHQXPEHURIWULJJHUVDSSOLHGPXVWHTXDO
WKHQXPEHURISRLQWVVSH.LILHGE\WKH/(1.RPPDQGSDUDPHWHU1RWHWKDWLQWKLV
PRGHWKHPD[LPXPWULJJHUUDWHLV+]DQGWKHVWRUDJHLQWHUYDO.RQWUROVHWWLQJ
KDVQRHIIH.W
7'& 7DNHGDWD.RQWLQXRXVO\
,QLWLDWHVGDWDD.TXLVLWLRQ$.TXLVLWLRQVWDUWVDWWKH.XUUHQWSRVLWLRQLQWKH.XUYHEXIIHU
DQG.RQWLQXHVDWWKHUDWHVHWE\WKH675.RPPDQGXQWLOKDOWHGE\DQ+&.RPPDQG
7KHEXIIHULV.LU.XODULQWKHVHQVHWKDWZKHQLWKDVEHHQILOOHGQHZGDWDRYHUZULWHV
HDUOLHUSRLQWV
(9(17>Q@ (YHQWPDUNHU.RQWURO'XULQJD.XUYHD.TXLVLWLRQLIELWLQWKH&%'.RPPDQGKDVEHHQDVVHUWHGWKHOR.N
LQDPSOLILHUVWRUHVWKHYDOXHRIWKH(YHQWYDULDEOHDWHD.KVDPSOHSRLQW7KLV.DQEH
XVHGDVDPDUNHULQGL.DWLQJWKHSRLQWDWZKL.KDQH[SHULPHQWDOSDUDPHWHUZDV
.KDQJHG7KH(9(17.RPPDQGLVXVHGWRVHWWKLVYDULDEOHWRDQ\YDOXHEHWZHHQDQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 160/217
&KDSWHU&20387(523(5$7,21
+& +DOW.XUYHD.TXLVLWLRQ
+DOWV.XUYHD.TXLVLWLRQLQSURJUHVV,WLVHIIH.WLYHGXULQJERWKVLQJOHGDWDD.TXLVLWLRQ
LQLWLDWHGE\7'.RPPDQGDQG.RQWLQXRXVGDWDD.TXLVLWLRQLQLWLDWHGE\7'&
.RPPDQG.XUYHD.TXLVLWLRQV7KH.XUYHPD\EHUHVWDUWHGE\PHDQVRIWKH7'7'7
RU7'&.RPPDQGDVDSSURSULDWH
0 &XUYHD.TXLVLWLRQVWDWXVPRQLWRU &DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKIRXUYDOXHVWKDWSURYLGHLQIRUPDWLRQ
.RQ.HUQLQJGDWDD.TXLVLWLRQDVIROORZV
)LUVWYDOXH&XUYH$.TXLVLWLRQ6WDWXV DQXPEHUZLWKILYHSRVVLEOHYDOXHVGHILQHG
E\WKHIROORZLQJWDEOH
)LUVW9DOXH 6LJQLIL.DQ.H
1R.XUYHD.WLYLW\LQSURJUHVV
$.TXLVLWLRQYLD7'.RPPDQGLQSURJUHVVDQGUXQQLQJ
$.TXLVLWLRQYLD7'&.RPPDQGLQSURJUHVVDQGUXQQLQJ
$.TXLVLWLRQYLD7'.RPPDQGLQSURJUHVVEXWKDOWHGE\+&
.RPPDQG
$.TXLVLWLRQYLD7'&.RPPDQGLQSURJUHVVEXWKDOWHGE\
+&.RPPDQG
6H.RQGYDOXH1XPEHURI6ZHHSV$.TXLUHG 7KLVQXPEHULVLQ.UHPHQWHGHD.KWLPH
D7'LV.RPSOHWHGDQGHD.KWLPHDIXOO.\.OHLV.RPSOHWHGRQD7'&D.TXLVLWLRQ,WLV
]HURHGE\WKH1&.RPPDQGDQGDOVRZKHQHYHUD&%'RU/(1.RPPDQGLVDSSOLHG
ZLWKRXWSDUDPHWHUV
7KLUGYDOXH6WDWXV%\WH7KHVDPHDVWKHUHVSRQVHWRWKH67.RPPDQG7KHQXPEHU
UHWXUQHGLVWKHGH.LPDOHTXLYDOHQWRIWKHVWDWXVE\WHDQGUHIHUVWRWKHSUHYLRXVO\
DSSOLHG.RPPDQG
)RXUWKYDOXH1XPEHURI3RLQWV$.TXLUHG7KLVQXPEHULVLQ.UHPHQWHGHD.KWLPHD
SRLQWLVWDNHQ,WLV]HURHGE\WKH1&.RPPDQGDQGZKHQHYHU&%'RU/(1LVDSSOLHG
ZLWKRXWSDUDPHWHUV
'&>@Q 'XPSD.TXLUHG.XUYHVWR.RPSXWHU
,QIL[HGSRLQWPRGH.DXVHVDVWRUHG.XUYHWREHGXPSHGYLDWKH.RPSXWHULQWHUID.HLQ
GH.LPDOIRUPDW
,QIORDWLQJSRLQWPRGHWKH6(1.XUYHELWLQ&%'PXVWKDYHEHHQVWRUHGLIRQHRU
PRUHRIWKHIROORZLQJRXWSXWVDUHUHTXLUHGLQRUGHUWKDWWKHOR.NLQDPSOLILHU.DQ
SHUIRUPWKHQH.HVVDU\.RQYHUVLRQIURP)6WRYROWVRUDPSV;<0DJQLWXGH 1RLVH6LPLODUO\LIWKHGXDOUHIHUHQ.HRUKDUPRQL.PRGHVDUHD.WLYHWKHQWKH6(1
.XUYHELWLQ&%'PXVWKDYHEHHQVWRUHGLQRUGHUWRSHUIRUPDVLPLODU.RQYHUVLRQ
IURP)6WRYROWVRUDPSVIRU;<DQG0DJQLWXGH
2QH.XUYHDWDWLPHLVWUDQVIHUUHG7KHYDOXHRIQLVWKHELWQXPEHURIWKHUHTXLUHG
.XUYHZKL.KPXVWKDYHEHHQVWRUHGE\WKHPRVWUH.HQW&%'.RPPDQG+HQ.HQ.DQ
UDQJHIURPWRRUWRLIDGXDOPRGHLVD.WLYH,IIRUH[DPSOH&%'KDGEHHQ
VHQWHTXLYDOHQWWRDVVHUWLQJELWVDQGWKHQWKH;DQG0DJQLWXGHRXWSXWVZRXOGEH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 161/217
&KDSWHU&20387(523(5$7,21
VWRUHG7KHSHUPLWWHGYDOXHVRIQZRXOGWKHUHIRUHEHDQGVRWKDW'&ZRXOG
WUDQVIHUWKH;.KDQQHORXWSXW.XUYHDQG'&WKH0DJQLWXGH.XUYH
127(:KHQWUDQVIHUULQJWKH)UHTXHQ.\.XUYHZKL.KLVVDYHGZKHQELWLQWKH
&%'SDUDPHWHULVDVVHUWHGWKHLQVWUXPHQWDXWRPDWL.DOO\UHDGVWKHGDWDIRUHD.K
VWRUHGSRLQWLQERWKIUHTXHQ.\.XUYHVLHWKHORZHUDQGXSSHUELWVDQGVHQGVLW
DVDVLQJOHGDWDSRLQW
7KH.RPSXWHUSURJUDPVVXEURXWLQHZKL.KUHDGVWKHUHVSRQVHVWRWKH'&.RPPDQG
QHHGVWRUXQDSURJUDPORRSWKDW.RQWLQXHVXQWLODOOWKHGDWDKDVEHHQWUDQVIHUUHG
1RWHWKDWZKHQXVLQJWKLV.RPPDQGZLWKWKH*3,%LQWHUID.HWKHVHULDOSROOPXVWEH
XVHG$IWHUVHQGLQJWKH'&.RPPDQGSHUIRUPUHSHDWHGVHULDOSROOVXQWLOELWLVVHW
LQGL.DWLQJWKDWWKHLQVWUXPHQWKDVDQRXWSXWZDLWLQJWREHUHDG7KHQSHUIRUPUHSHDWHG
UHDGVLQDORRSZDLWLQJHD.KWLPHXQWLOELWLVVHWLQGL.DWLQJWKDWDQHZYDOXHLV
DYDLODEOH7KHORRSVKRXOG.RQWLQXHXQWLOELWLVVHWLQGL.DWLQJWKDWWKHWUDQVIHULV
.RPSOHWHG
'&7Q 'XPSD.TXLUHG.XUYHVWR.RPSXWHULQWDEXODUIRUPDW7KLV.RPPDQGLVVLPLODUWRWKH'&.RPPDQGGHV.ULEHGDERYHEXWDOORZVWUDQVIHURI
VHYHUDO.XUYHVDWDWLPHDQGRQO\RSHUDWHVLQIL[HGSRLQWPRGH6WRUHG.XUYHVDUH
WUDQVIHUUHGYLDWKH.RPSXWHULQWHUID.HLQGH.LPDOIRUPDW
,QVLQJOHUHIHUHQ.HPRGHWKH'&7SDUDPHWHULVDQLQWHJHUEHWZHHQDQG
EHLQJWKHGH.LPDOHTXLYDOHQWRIDELWELQDU\QXPEHU,QHLWKHURIWKHGXDOUHIHUHQ.H
PRGHVLWLVDQLQWHJHUEHWZHHQDQGEHLQJWKHGH.LPDOHTXLYDOHQWRID
ELWELQDU\QXPEHU:KHQDJLYHQELWLQWKHQXPEHULVDVVHUWHGWKH.RUUHVSRQGLQJ
.XUYHLVVHOH.WHGIRUWUDQVIHU:KHQDELWLVQHJDWHGWKH.XUYHLVQRWWUDQVIHUUHG7KH
ELW.RUUHVSRQGLQJWRHD.K.XUYHLVVKRZQLQWKHWDEOHEHORZ
%LW 'H.LPDOYDOXH 2XWSXWDQGUDQJH
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6
3KDVH
6HQVLWLYLW\VHWWLQJWR,02'(
1RLVHWR)6
5DWLR)6
/RJUDWLRWR
$'&9
$'&9 $'&9
$'&9
'$&9
'$&9
(9(17YDULDEOHWR
5HIHUHQ.HIUHTXHQ.\PLOOLKHUW]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 162/217
&KDSWHU&20387(523(5$7,21
%LW 'H.LPDOYDOXH 2XWSXWDQGUDQJH
'XDOPRGHVRQO\
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6
3KDVH2XWSXW
6HQVLWLYLW\VHWWLQJWR,02'(
7KHYDOXHVRIWKHVHOH.WHG.XUYHVDWWKHVDPHVDPSOHSRLQWDUHWUDQVIHUUHGDVDJURXS
LQWKHRUGHURIWKHDERYHWDEOHVHSDUDWHGE\WKH.KRVHQGHOLPLWHU.KDUD.WHUDQG
WHUPLQDWHGZLWKWKHVHOH.WHGWHUPLQDWRU7KLV.RQWLQXHVXQWLODOOWKHSRLQWVKDYHEHHQ
WUDQVIHUUHG
127(:KHQWUDQVIHUULQJWKH)UHTXHQ.\.XUYHZKL.KLVVDYHGZKHQELWLQWKH
&%'SDUDPHWHULVDVVHUWHGWKHLQVWUXPHQWDXWRPDWL.DOO\UHDGVWKHGDWDIRUHD.K
VWRUHGSRLQWLQERWKIUHTXHQ.\.XUYHVLHWKHORZHUDQGXSSHUELWVDQGVHQGVLW
DVDVLQJOHGDWDSRLQW
'&%Q 'XPSD.TXLUHG.XUYHVWR.RPSXWHULQELQDU\IRUPDW
7KLV.RPPDQG.DXVHVDVWRUHG.XUYHWREHGXPSHGYLDWKH.RPSXWHULQWHUID.HLQ
ELQDU\IRUPDWXVLQJWZRE\WHVSHUSRLQW$OO.XUYHVRWKHUWKDQWKHORZHUELWVRIWKH
UHIHUHQ.HIUHTXHQ.\.XUYH.XUYHXVHELW¶V.RPSOHPHQWHQ.RGLQJDQGDOOGDWD
SRLQWVDUHVHQWZLWKWKH06%ILUVW7KHQXPEHURIGDWDE\WHVVHQWLVWKHUHIRUHHTXDOWR
WZL.HWKH.XUUHQW.XUYHOHQJWK(D.KSRLQWLVVHQWLQIL[HGSRLQWPRGHWKHUHEHLQJQR
IORDWLQJSRLQWYHUVLRQRIWKH.RPPDQGDQGKHQ.HLIIORDWLQJSRLQWYDOXHVDUHUHTXLUHG
WKHXVHUPD\QHHGWRDGGLWLRQDOO\VWRUHDQGUHDGWKH6HQVLWLYLW\.XUYHDQGWKHQSHUIRUP
WKH.RUUH.WLRQLQKLVRZQVRIWZDUH,QRUGHUWRD.KLHYHWKHPD[LPXPWUDQVIHUUDWHQR
WHUPLQDWRUVDUHXVHGZLWKLQWKHWUDQVPLVVLRQDOWKRXJKWKHUHVSRQVHLVWHUPLQDWHG
QRUPDOO\DWWKHHQG
2QH.XUYHDWDWLPHLVWUDQVIHUUHG7KHYDOXHRIQLVWKHELWQXPEHURIWKHUHTXLUHG
.XUYHZKL.KPXVWKDYHEHHQVWRUHGE\WKHPRVWUH.HQW&%'.RPPDQG+HQ.HQ.DQ
UDQJHIURPWRLQ6LQJOH5HIHUHQ.H0RGHDQGWRLQWKHGXDOPRGHV,IIRU
H[DPSOH&%'KDGEHHQVHQWHTXLYDOHQWWRDVVHUWLQJELWVDQGWKHQWKH;DQG
0DJQLWXGHRXWSXWVZRXOGEHVWRUHG7KHSHUPLWWHGYDOXHVRIQZRXOGWKHUHIRUHEH
DQGVRWKDW'&%ZRXOGWUDQVIHUWKH;.KDQQHORXWSXW.XUYHDQG'&%WKH
0DJQLWXGH.XUYH
&XUYHVDQGVWRUHWKHUHIHUHQ.HIUHTXHQ.\LQPLOOLKHUW]:KHQXVLQJWKH'&%
.RPPDQGDOWKRXJKQRWZLWKWKHRWKHU.XUYHWUDQVIHU.RPPDQGVERWK.XUYHVQHHGWR
EHWUDQVIHUUHGVHSDUDWHO\7KH\VKRXOGWKHQEH.RQYHUWHGWRWZRDUUD\VRILQWHJHU YDOXHVDOORZLQJIRUWKHID.WWKDWWKHGDWDSRLQWVLQ.XUYHDUHXQVLJQHGELW
YDOXHVZKLOHWKRVHLQ.XUYHDUHVLJQHG¶V.RPSOHPHQWELWYDOXHVDOWKRXJKLQ
SUD.WL.HWKH\DUHQHYHUQHJDWLYH)LQDOO\WKH\VKRXOGEHDVVHPEOHGLQWRDVLQJOH.XUYH
XVLQJWKHIROORZLQJDOJRULWKP
5HIHUHQ.H)UHTXHQ.\îYDOXHLQ&XUYHYDOXHLQ&XUYH
7KH.RPSXWHUSURJUDPVVXEURXWLQHZKL.KUHDGVWKHUHVSRQVHVWRWKH'&%.RPPDQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 163/217
&KDSWHU&20387(523(5$7,21
QHHGVWREHDEOHWRKDQGOHWKHSRWHQWLDOO\YHU\ODUJHGDWDEOR.NVNE\WHVLQWKH.DVH
RIRQHN.XUYHWKDW.DQEHJHQHUDWHG
127(:KHQXVLQJ56.RPPXQL.DWLRQVWKHLQWHUID.HPXVWEHVHWWRXVH
GDWDELWWUDQVPLVVLRQ
&RPSXWHU,QWHUID.HV56DQG*3,%56>Q>Q@@ 6HWUHDG56LQWHUID.HSDUDPHWHUV
7KHYDOXHRIQVHWVWKHEDXGUDWHRIWKH56LQWHUID.HD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q %DXGUDWHELWVSHUVH.RQG
7KHORZHVWILYHELWVLQQ.RQWUROWKHRWKHU56SDUDPHWHUVD..RUGLQJWRWKH
IROORZLQJWDEOH
ELWQXPEHU ELWQHJDWHG ELWDVVHUWHG
GDWDSDULW\ELWV GDWDSDULW\ELWV
QRSDULW\ELW SDULW\ELW
HYHQSDULW\ RGGSDULW\
H.KRGLVDEOHG H.KRHQDEOHG
SURPSWGLVDEOHG SURPSWHQDEOHG
*3>Q>Q@@ 6HW5HDG*3,%SDUDPHWHUV
QVHWVWKH*3,%DGGUHVVLQWKHUDQJHWR
QVHWVWKH*3,%WHUPLQDWRUDQGWKHWHVWH.KRIXQ.WLRQD..RUGLQJWRWKHIROORZLQJWDEOH
Q 7HUPLQDWRU
>&5/)@WHVWH.KRGLVDEOHG
>&5/)@WHVWH.KRHQDEOHG
QRWHUPLQDWRUWHVWH.KRGLVDEOHG
QRWHUPLQDWRUWHVWH.KRHQDEOHG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 164/217
&KDSWHU&20387(523(5$7,21
,QDOO.DVHVWKH(2,OLQHLVDVVHUWHGZLWKWKHODVWE\WHRIDUHVSRQVH
:KHQWKHWHVWH.KRLVRQHYHU\.KDUD.WHUWUDQVPLWWHGRUUH.HLYHGYLDWKH*3,%SRUWLV
H.KRHGWRWKH56SRUW7KLVLVSURYLGHGVROHO\DVDQDLGWRSURJUDPGHYHORSPHQW
DQGVKRXOGQRWEHHQDEOHGGXULQJQRUPDORSHUDWLRQRIWKHLQVWUXPHQW
?1Q $GGUHVV.RPPDQG:KHQWKHPRGHOLVGDLV\.KDLQHGZLWKRWKHU.RPSDWLEOHLQVWUXPHQWVWKLV
.RPPDQGZLOO.KDQJHZKL.KLQVWUXPHQWLVDGGUHVVHG$OOGDLV\.KDLQHGLQVWUXPHQWV
UH.HLYH.RPPDQGVEXWRQO\WKH.XUUHQWO\DGGUHVVHGLQVWUXPHQWZLOOLPSOHPHQWRU
UHVSRQGWRWKH.RPPDQGV7KHH[.HSWLRQLVWKH?1Q.RPPDQG,IQPDW.KHVWKH
DGGUHVVVHWIURPWKHIURQWSDQHOWKHLQVWUXPHQWZLOOVZLW.KLQWRDGGUHVVHGPRGH,IQ
GRHVQRWPDW.KWKHDGGUHVVVHWIURPWKHIURQWSDQHOWKHLQVWUXPHQWZLOOVZLW.KLQWR
XQDGGUHVVHGPRGH1RWHWKDWWKH?1Q.RPPDQGGRHVQRW.KDQJHWKHDGGUHVVRIDQ
LQVWUXPHQWEXWZKL.KLQVWUXPHQWLVDGGUHVVHG
127($OOLQVWUXPHQWVPXVWKDYHDXQLTXHDGGUHVV
''>Q@ 'HILQHGHOLPLWHU.RQWURO7KHYDOXHRIQZKL.K.DQEHVHWWRRUIURPWRGHWHUPLQHVWKH$6&,,YDOXH
RIWKH.KDUD.WHUVHQWE\WKHOR.NLQDPSOLILHUWRVHSDUDWHWZRQXPHUL.YDOXHVLQDWZR
YDOXHUHVSRQVHVX.KDVWKDWJHQHUDWHGE\WKH03PDJQLWXGHDQGSKDVH.RPPDQG
67 5HSRUWVWDWXVE\WH
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVWDWXVE\WHDQLQWHJHUEHWZHHQDQG
ZKL.KLVWKHGH.LPDOHTXLYDOHQWRIDELQDU\QXPEHUZLWKWKHIROORZLQJELW
VLJQLIL.DQ.H
%LW &RPPDQG.RPSOHWH
%LW ,QYDOLG.RPPDQG%LW &RPPDQGSDUDPHWHUHUURU
%LW 5HIHUHQ.HXQOR.N
%LW 2YHUORDG
%LW 1HZ$'&YDOXHVDYDLODEOHDIWHUH[WHUQDOWULJJHU
%LW $VVHUWHG654
%LW 'DWDDYDLODEOH
127(WKLV.RPPDQGLVQRWQRUPDOO\XVHGLQ*3,%.RPPXQL.DWLRQVZKHUHWKH
VWDWXVE\WHLVD..HVVHGE\SHUIRUPLQJDVHULDOSROO
1 5HSRUWRYHUORDGE\WH
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHRYHUORDGE\WHDQLQWHJHUEHWZHHQDQGZKL.KLVWKHGH.LPDOHTXLYDOHQWRIDELQDU\QXPEHUZLWKWKHIROORZLQJELW
VLJQLIL.DQ.H
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 165/217
&KDSWHU&20387(523(5$7,21
%LW QRWXVHG
%LW &+RXWSXWRYHUORDG!)6
%LW &+RXWSXWRYHUORDG!)6
%LW <.KDQQHORXWSXWRYHUORDG!)6
%LW ;.KDQQHORXWSXWRYHUORDG!)6
%LW QRWXVHG
%LW LQSXWRYHUORDG%LW UHIHUHQ.HXQOR.N
06>Q@ 6HWUHDGVHUYL.HUHTXHVWPDVNE\WH
7KHYDOXHRIQVHWVWKH654PDVNE\WHLQWKHUDQJHWR
5(027(>Q@ 5HPRWHRQO\IURQWSDQHOOR.NRXW.RQWURO
$OORZHGYDOXHVRIQDUHDQG:KHQQLVHTXDOWRWKHOR.NLQDPSOLILHUHQWHUV
UHPRWHRQO\PRGHLQZKL.KWKHIURQWSDQHO.RQWUROIXQ.WLRQVDUHLQRSHUDWLYHDQGWKH
LQVWUXPHQW.DQRQO\EH.RQWUROOHGZLWKWKH56RUWKH*3,%LQWHUID.HV:KHQQLV
HTXDOWRWKHIURQWSDQHO.RQWUROVIXQ.WLRQQRUPDOO\
,QVWUXPHQW,GHQWLIL.DWLRQ
,' ,GHQWLIL.DWLRQ
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHQXPEHU
9(5 5HSRUWILUPZDUHYHUVLRQ
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHILUPZDUHYHUVLRQQXPEHU7KH
ILUPZDUHYHUVLRQQXPEHULVWKHQXPEHUGLVSOD\HGRQWKH&RQILJXUDWLRQPHQX
)URQW3DQHO
/76>Q@ 'LVSOD\RQRII.RQWURO
7KHYDOXHRIQ.RQWUROVWKHIURQWSDQHOHOH.WUROXPLQHV.HQWGLVSOD\D..RUGLQJWRWKH
IROORZLQJWDEOH
Q 6HOH.WLRQ
'LVSOD\RII
1RUPDORSHUDWLRQ
$XWR'HIDXOW
$')Q $XWR'HIDXOW.RPPDQG
7KLV.RPPDQGZLOODXWRPDWL.DOO\VHWDOOWKHLQVWUXPHQW.RQWUROVDQGGLVSOD\VWRWKH
SUHGHILQHGVWDWHV7KHYDOXHRIQLVXVHGWRGHILQHZKDW.RQWUROVDUHDIIH.WHGD..RUGLQJ
WRWKHIROORZLQJWDEOH
Q HIIH.W
&RPSOHWHUHVHWWRID.WRU\VHWGHIDXOWYDOXHVOLVWHGLQDSSHQGL[(HTXLYDOHQWWR
XVLQJWKHIURQWSDQHO$XWR'HIDXOWIXQ.WLRQ+RZHYHULIWKLV.RPPDQGLVXVHG
ZKHQWKHLQWHUID.HSDUDPHWHUVDUHDWYDOXHVRWKHUWKDQWKHLUGHIDXOWVHWWLQJVWKHQ
.RPPXQL.DWLRQZLOOEHORVW
5HVHWWRID.WRU\VHWGHIDXOWYDOXHVOLVWHGLQDSSHQGL[(ZLWKWKHH[.HSWLRQRIWKH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 166/217
&KDSWHU&20387(523(5$7,21
56DQG*3,%.RPPXQL.DWLRQVLQWHUID.HVHWWLQJV
'XDO0RGH&RPPDQGV
:KHQHLWKHUGXDOUHIHUHQ.HRUGXDOKDUPRQL.PRGHVDUHVHOH.WHGVRPH.RPPDQGV
.KDQJHVRWKDWERWK.KDQQHOV.DQEH.RQWUROOHGLQGHSHQGHQWO\DVOLVWHGLQWKHIROORZLQJ
WDEOH
6LQJOH5HIHUHQ.HRU 'XDO5HIHUHQ.HRU
9LUWXDO5HIHUHQ.HPRGH.RPPDQG 'XDO+DUPRQL.PRGH.RPPDQG
(; QRWDYDLODEOH
0$*>@ 0$*>@
0$*>@
03>@ 03>@
03>@
3+$>@>Q@ 3+$>@>Q@
3+$>@>Q@
5()3>@>Q@ 5()3>@>Q@
5()3>@>Q@5()1>Q@ 5()1>Q@
5()1>Q@QLQGXDO
UHIHUHQ.HPRGH
6(1>@>Q@ 6(1>@>Q@
6(1>@>Q@
6/23(>Q@ 6/23(>Q@
6/23(>Q@
6:((3 QRWDYDLODEOH
7&>@>Q@ 7&>@>Q@
7&>@>Q@
;>@ ;>@
;>@
;2)>Q>Q@@ ;2)>Q>Q@@
;2)>Q>Q@@
;<>@ ;<>@
;<>@
<>@ <>@
<>@
<2)>Q>Q@@ <2)>Q>Q@@
<2)>Q>Q@@
$41 $41
$41
$6 $6$6
$;2 $;2
$;2
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 167/217
&KDSWHU&20387(523(5$7,21
3URJUDPPLQJ([DPSOHV
,QWURGX.WLRQ
7KLVVH.WLRQJLYHVVRPHH[DPSOHVRIWKH.RPPDQGVWKDWQHHGWREHVHQWWRWKHOR.NLQ
DPSOLILHUIRUW\SL.DOH[SHULPHQWDOVLWXDWLRQV
%DVL.6LJQDO5H.RYHU\
,QDW\SL.DOVLPSOHH[SHULPHQWWKH.RPSXWHULVXVHGWRVHWWKHLQVWUXPHQW.RQWUROVDQG
WKHQWRUH.RUGWKH.KRVHQRXWSXWVSHUKDSVDVDIXQ.WLRQRIWLPH$WVDPSOLQJUDWHVRI
XSWRDIHZSRLQWVSHUVH.RQGWKHUHLVQRQHHGWRXVHWKHLQWHUQDO.XUYHEXIIHU7KH
.RPPDQGVWRD.KLHYHWKLVZRXOGWKHUHIRUHEHVLPLODUWRWKHIROORZLQJVHTXHQ.H
,( 6HWUHIHUHQ.HWRH[WHUQDOIURQWSDQHOLQSXW
902'( 6LQJOHHQGHGYROWDJHLQSXWPRGH
$8720$7,& $&*DLQ.RQWURODXWRPDWL.
)/2$7 )ORDWLQSXW.RQQH.WRUVKHOOXVLQJN :WRJURXQG/) 7XUQRIIOLQHIUHTXHQ.\UHMH.WLRQILOWHU
$60 $XWR0HDVXUHDVVXPHVUHIHUHQ.HIUHTXHQ.\!+]
7& 6HWWLPH.RQVWDQWWRPVVLQ.HSUHYLRXV$60.KDQJHGLW
7KHQWKHRXWSXWV.RXOGEHUHDGDVIROORZV
; 5HDGV;.KDQQHORXWSXWLQYROWV
< 5HDGV<.KDQQHORXWSXWLQYROWV
0$* 5HDGV0DJQLWXGHLQYROWV
3+$ 5HDGV3KDVHLQGHJUHHV
)54 5HDGVUHIHUHQ.HIUHTXHQ.\LQKHUW]
7KH.RQWUROOLQJSURJUDPZRXOGVHQGDQHZRXWSXW.RPPDQGHD.KWLPHDQHZUHDGLQJ
ZHUHUHTXLUHG1RWHWKDWZKHQXVLQJDQRXWSXWILOWHUVORSHRIG%R.WDYHDJRRG
UXOHRIWKXPELVWRZDLWIRUDSHULRGRIIRXUWLPH.RQVWDQWVDIWHUWKHLQSXWVLJQDOKDV
.KDQJHGEHIRUHUH.RUGLQJDQHZYDOXH+HQ.HLQDV.DQQLQJW\SHH[SHULPHQWWKH
SURJUDPVKRXOGLVVXHWKH.RPPDQGVWRZKDWHYHUHTXLSPHQW.DXVHVWKHLQSXWVLJQDOWR
WKHOR.NLQDPSOLILHUWR.KDQJHZDLWIRUIRXUWLPH.RQVWDQWVDQGWKHQUH.RUGWKH
UHTXLUHGRXWSXW
)UHTXHQ.\5HVSRQVH0HDVXUHPHQW
,QWKLVH[DPSOHWKHOR.NLQDPSOLILHUVLQWHUQDORV.LOODWRURXWSXWVLJQDOLVIHGYLDWKH
ILOWHUVWDJHXQGHUWHVWED.NWRWKHLQVWUXPHQWVVLJQDOLQSXW7KHRV.LOODWRUIUHTXHQ.\LV
VWHSSHGEHWZHHQDORZHUDQGDQXSSHUIUHTXHQ.\DQGWKHVLJQDOPDJQLWXGHDQGSKDVH
UH.RUGHG$WVDPSOLQJUDWHVRIXSWRDIHZSRLQWVSHUVH.RQGWKHUHLVQRQHHGWRXVH
WKHLQWHUQDO.XUYHEXIIHURURV.LOODWRUIUHTXHQ.\VZHHSJHQHUDWRU7KH.RPPDQGVWR
D.KLHYHWKLVZRXOGWKHUHIRUHEHVLPLODUWRWKHIROORZLQJVHTXHQ.H
,( 6HWUHIHUHQ.HPRGHWRLQWHUQDO
902'( 6LQJOHHQGHGYROWDJHLQSXWPRGH
$8720$7,& $&*DLQ.RQWURODXWRPDWL.
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 168/217
&KDSWHU&20387(523(5$7,21
)/2$7 )ORDWLQSXW.RQQH.WRUVKHOOXVLQJN :WRJURXQG
/) 7XUQRIIOLQHIUHTXHQ.\UHMH.WLRQILOWHU
2$ 6HWRV.LOODWRUDPSOLWXGHWR9UPV
2) 6HWRV.LOODWRUIUHTXHQ.\WR+]VWDUWLQJIUHTXHQ.\
6(1 6HWVHQVLWLYLW\WR9IXOOV.DOH
7& 6HWWLPH.RQVWDQWWRPV
$41 $XWR3KDVH
7KHIUHTXHQ.\VZHHSZRXOGEHSHUIRUPHGDQGWKHRXWSXWVUH.RUGHGE\VHQGLQJWKH
IROORZLQJ.RPPDQGVIURPD)251(;7SURJUDPORRS
2);; 6HWRV.LOODWRUIUHTXHQ.\WRQHZYDOXH;;KHUW]
6RIWZDUHGHOD\RIPVîPVDOORZLQJRXWSXWWR
VWDELOL]H
0$* 5HDG0DJQLWXGHLQYROWV
3+$ 5HDG3KDVHLQGHJUHHV
)54 5HDGUHIHUHQ.HIUHTXHQ.\LQKHUW]7KLVZRXOGEHVDPHDV
WKHRV.LOODWRUIUHTXHQ.\VLQ.HWKHXQLWLVRSHUDWLQJLQ
WKHLQWHUQDOUHIHUHQ.HPRGH
XQWLOWKHVWRSIUHTXHQ.\LVUHD.KHG
;DQG<2XWSXW&XUYH6WRUDJH0HDVXUHPHQW
,QWKLVH[DPSOHWKHOR.NLQDPSOLILHULVPHDVXULQJD.XUUHQWLQSXWVLJQDODSSOLHGWRWKH
%LQSXW.RQQH.WRUDQGWKHPHDVXUHG;.KDQQHORXWSXWDQG<.KDQQHORXWSXWDUH
UH.RUGHGIRUVH.RQGVDWD+]VDPSOLQJUDWH7KHD.TXLUHG.XUYHVDVUHDGED.N
WRWKH.RPSXWHUDUHUHTXLUHGLQIORDWLQJSRLQWPRGH
7KHVHTXHQ.HRI.RPPDQGVLVWKHUHIRUHDVIROORZV
,( 6HWUHIHUHQ.HPRGHWRH[WHUQDOIURQWSDQHOLQSXW
,02'( 1RUPDO.XUUHQWLQSXWPRGH
$8720$7,& $&*DLQ.RQWURODXWRPDWL.
)/2$7 )ORDWLQSXW.RQQH.WRUVKHOOXVLQJN :WRJURXQG
/) 7XUQRIIOLQHIUHTXHQ.\UHMH.WLRQILOWHU
6(1 6HWVHQVLWLYLW\WRQ$IXOOV.DOH
7& 6HWWLPH.RQVWDQWWRPV
$41 $XWR3KDVH
1RZWKH.XUYHVWRUDJHQHHGVWREHVHWXS
1& &OHDUDQGUHVHW.XUYHEXIIHU
&%' 6WRUHV;.KDQQHORXWSXW<.KDQQHORXWSXWDQGVHQVLWLYLW\
LHELWVDQG
/(1 1XPEHURISRLQWV+]îVH.RQGV
675 6WRUHDSRLQWHYHU\PV+]
7KHGDWDLVD.TXLUHGE\LVVXLQJ
7' $.TXLUHVGDWD
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 169/217
&KDSWHU&20387(523(5$7,21
$VWKHD.TXLVLWLRQLVUXQQLQJWKH0.RPPDQGUHSRUWVWKHVWDWXVRIWKH.XUYH
D.TXLVLWLRQ2Q.HWKLVLQGL.DWHVWKHD.TXLVLWLRQLV.RPSOHWHLHSDUDPHWHU
SDUDPHWHUWKHD.TXLUHGGDWDPD\EHWUDQVIHUUHGWRWKH.RPSXWHUXVLQJ
'& 7UDQVIHUV;.KDQQHORXWSXWYDOXHVLQIORDWLQJSRLQWPRGH
'& 7UDQVIHUV<.KDQQHORXWSXWYDOXHVLQIORDWLQJSRLQWPRGH
7KHLQSXWURXWLQHRIWKHSURJUDPPXVWEHSUHSDUHGWRUHDGDQGVWRUHUHVSRQVHVWR
HD.KRIWKHVH.RPPDQGV
7UDQVLHQW5H.RUGHU
,QWKLVH[DPSOHWKHVLJQDOUH.RYHU\.DSDELOLWLHVRIWKHOR.NLQDPSOLILHUDUHQRWXVHG
EXWWKHDX[LOLDU\LQSXWVDUH7KHYROWDJHDSSOLHGWRWKH$'&LQSXWRQWKHUHDUSDQHO
LVVDPSOHGDQGGLJLWL]HGDWDUDWHRIN+]ZLWKWKHYDOXHVEHLQJVWRUHGWRWKH.XUYH
EXIIHU6DPSOLQJLVUHTXLUHGWRVWDUWRQUH.HLSWRIDWULJJHUDWWKH75,*,1.RQQH.WRU
RQWKHUHDUSDQHODQGPXVWODVWIRUPV
7KHVHTXHQ.HRI.RPPDQGVLVWKHUHIRUHDVIROORZV
1& &OHDUDQGUHVHW.XUYHEXIIHU
/(1 PVUH.RUGLQJWLPHDWN+]SRLQWV
7$'& 6HW$'&VDPSOLQJWREXUVWPRGHIL[HG
UDWHVSHUSRLQWRUN+]H[WHUQDOWULJJHUDQGDUPWULJJHU
$VVRRQDVDWULJJHUR..XUVWKHD.TXLVLWLRQVWDUWV2Q.HLW.RPSOHWHVWKHD.TXLUHGGDWD
PD\EHWUDQVIHUUHGWRWKH.RPSXWHUXVLQJ
'& 7UDQVIHUV$'&YDOXHVLQIORDWLQJSRLQWPRGH
7KHLQSXWURXWLQHRIWKHSURJUDPPXVWEHSUHSDUHGWRUHDGDQGVWRUHUHVSRQVHV
WRWKLV.RPPDQG
)UHTXHQ.\5HVSRQVH0HDVXUHPHQWXVLQJ&XUYH
6WRUDJHDQG)UHTXHQ.\6ZHHS
,QWKLVH[DPSOHDPRUHVRSKLVWL.DWHGYHUVLRQRIWKDWJLYHQLQVH.WLRQWKH
LQWHUQDORV.LOODWRUIUHTXHQ.\VZHHSJHQHUDWRULVXVHGLQ.RQMXQ.WLRQZLWK.XUYHVWRUDJH
DOORZLQJWKHD.TXLVLWLRQRIDIUHTXHQ.\UHVSRQVHZLWKRXWWKHQHHGIRUWKH.RPSXWHUWR
SHUIRUPWKHIUHTXHQ.\VHWWLQJIXQ.WLRQIRUHD.KSRLQW
$VEHIRUHWKHOR.NLQDPSOLILHUVLQWHUQDORV.LOODWRURXWSXWVLJQDOLVIHGYLDWKHILOWHU VWDJHXQGHUWHVWWRWKHVLJQDOLQSXW7KHRV.LOODWRUIUHTXHQ.\LVVWHSSHGEHWZHHQD
ORZHUDQGDQXSSHUIUHTXHQ.\DQGWKHVLJQDOPDJQLWXGHDQGSKDVHDUHUH.RUGHG
7KHUHTXLUHGVHTXHQ.HRI.RPPDQGVLVWKHUHIRUHDVIROORZV
,( 6HWUHIHUHQ.HPRGHWRLQWHUQDO
902'( 6LQJOHHQGHGYROWDJHLQSXWPRGH
$8720$7,& $&*DLQ.RQWURODXWRPDWL.
)/2$7 )ORDWLQSXW.RQQH.WRUVKHOOXVLQJN :WRJURXQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 170/217
&KDSWHU&20387(523(5$7,21
/) 7XUQRIIOLQHIUHTXHQ.\UHMH.WLRQILOWHU
2$ 6HWRV.LOODWRUDPSOLWXGHWR9UPV
2) 6HWLQLWLDORV.LOODWRUIUHTXHQ.\WR+]VRWKDW
$41UXQV.RUUH.WO\
6(1 6HWVHQVLWLYLW\WR9IXOOV.DOH
7& 6HWWLPH.RQVWDQWWRPV
$41 $XWR3KDVH
7KHQH[WJURXSRI.RPPDQGVVHWXSWKHIUHTXHQ.\VZHHS
)67$57 6HWLQLWLDORV.LOODWRUIUHTXHQ.\WR+]
)6723 6HWILQDORV.LOODWRUIUHTXHQ.\WR+]
)67(3 6WHSVL]H+]OLQHDUODZ
65$7( PVSHUVWHS
7KHUHZLOOWKHUHIRUHEHVWHSV+]WR+]LQ.OXVLYHLQ+]VWHSV1RZ
VSH.LI\WKH.XUYHVWRUDJH
1& &OHDUDQGUHVHW.XUYHEXIIHU
&%' 6WRUHV0DJQLWXGH3KDVH6HQVLWLYLW\DQG)UHTXHQ.\
LHELWVDQG
/(1 1XPEHURISRLQWV
675 6WRUHDSRLQWHYHU\PVPXVWPDW.K
65$7(SDUDPHWHU
7KHGDWDPD\QRZEHD.TXLUHGE\LVVXLQJWKH.RPSRXQG.RPPDQG
7'6:((3 6WDUWVVZHHSDQG.XUYHD.TXLVLWLRQ
1RWHWKDWWKHRUGHURIWKHVHWZR.RPPDQGVLVLPSRUWDQW,IXVHGDVVKRZQWKHQWKHGDWDZLOOEHD.TXLUHGDQGWKHRV.LOODWRUIUHTXHQ.\ZLOOEH.KDQJHGDWHD.KGDWDSRLQW
SULRUWRZDLWLQJIRUWKHWLPHVHWE\WKH65$7(DQG675.RPPDQGV7KLVJLYHV
VXIIL.LHQWWLPHIRUWKHLQVWUXPHQWDPSOLWXGHRXWSXWWRVWDELOL]HDIWHUHD.K.KDQJHRI
IUHTXHQ.\
,IWKH.RPPDQGVZHUHXVHGLQWKHUHYHUVHRUGHULH6:((37'WKHQWKHRXWSXWV
ZRXOGQHYHUKDYHWLPHWRVHWWOHE\WKHWLPHDWZKL.KWKH\ZHUHUH.RUGHG
7KHIUHTXHQ.\VZHHSVWDUWVDQGWKHPDJQLWXGHDQGSKDVHRXWSXWVDUHUH.RUGHGWRWKH
.XUYHEXIIHU$VLWUXQVWKH0.RPPDQGUHSRUWVWKHVWDWXVRIWKHD.TXLVLWLRQDQGRQ.H
WKLVLQGL.DWHVLWLV.RPSOHWHLHSDUDPHWHUSDUDPHWHUWKHD.TXLUHGGDWD
PD\EHWUDQVIHUUHGWRWKH.RPSXWHUXVLQJ
'& 7UDQVIHUV0DJQLWXGH.XUYH
'& 7UDQVIHUV3KDVH.XUYH
'& 7UDQVIHUV5HIHUHQ.HIUHTXHQ.\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 171/217
6SH.LIL.DWLRQV$SSHQGL[$
$
0HDVXUHPHQW0RGHV
; ,QSKDVH ½< 4XDGUDWXUH ° 7KHXQLW.DQVLPXOWDQHRXVO\SUHVHQWDQ\
5 0DJQLWXGH ¾ IRXURIWKHVHDVRXWSXWV6 3KDVH$QJOH °
1RLVH ¿
+DUPRQL. Q)Qt
'XDO+DUPRQL. 6LPXOWDQHRXVO\PHDVXUHVWKHVLJQDODWWZRGLIIHUHQW
KDUPRQL.V)DQG)RIWKHUHIHUHQ.HIUHTXHQ.\
6WDQGDUG8QLW )DQG)dN+]
:LWKRSWLRQ )DQG)dN+]
:LWKRSWLRQ )DQG)d0+]
'XDO5HIHUHQ.H 6LPXOWDQHRXVO\PHDVXUHVWKHVLJQDODWWZRGLIIHUHQW
UHIHUHQ.HIUHTXHQ.LHV) DQG)ZKHUH)LVWKHH[WHUQDO
DQG)WKHLQWHUQDOUHIHUHQ.H
6WDQGDUG8QLW )DQG)dN+]
:LWKRSWLRQ )DQG)dN+]
:LWKRSWLRQ )DQG)d0+]
9LUWXDO5HIHUHQ.H /R.NVWRDQGGHWH.WVDVLJQDOZLWKRXWDUHIHUHQ.H
+]d)d0+]
1RLVH 0HDVXUHVQRLVHLQDJLYHQEDQGZLGWK.HQWHUHGDWWKH
UHIHUHQ.HIUHTXHQ.\)
6SH.WUDO'LVSOD\ *LYHVDYLVXDOLQGL.DWLRQRIWKHVSH.WUDOSRZHU
GLVWULEXWLRQRIWKHLQSXWVLJQDOLQDXVHUVHOH.WHG
IUHTXHQ.\UDQJHO\LQJEHWZHHQ+]DQG0+]1RWH
WKHGLVSOD\LVQRW.DOLEUDWHGDQGLVLQWHQGHGSULPDULO\WR
DVVLVWLQ.KRRVLQJWKHRSWLPXPUHIHUHQ.HIUHTXHQ.\
'LVSOD\
uSL[HOó9*$HOH.WUROXPLQHV.HQWSDQHOJLYLQJGLJLWDODQDORJEDUJUDSK
DQGJUDSKL.DOLQGL.DWLRQRIPHDVXUHGVLJQDOV0HQXV\VWHPZLWKG\QDPL.NH\IXQ.WLRQ
DOOR.DWLRQ2QV.UHHQ.RQWH[WVHQVLWLYHKHOS
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 172/217
$SSHQGL[$63(&,),&$7,216
$
6LJQDO&KDQQHO
9ROWDJH,QSXWV
0RGHV $RQO\%RQO\RU'LIIHUHQWLDO$%
)XOOV.DOH6HQVLWLYLW\
+]d)dN+] Q9WR9LQDVHTXHQ.H
N+]d)d0+] Q9WR9LQDVHTXHQ.H'\QDPL.5HVHUYH !G%
,PSHGDQ.H 0:S)
0D[LPXP6DIH,QSXW 9SNSN
9ROWDJH1RLVH Q9+]DWN+]
&055 !G%DWN+]GHJUDGLQJE\G%R.WDYH
)UHTXHQ.\5HVSRQVH +]WR0+]
*DLQ$..XUD.\ W\SPD[IXOOEDQGZLGWK
'LVWRUWLRQ G%7+'G%$&JDLQN+]
/LQH)LOWHU DWWHQXDWHV+]
*URXQGLQJ %1&VKLHOGV.DQEHJURXQGHGRUIORDWHGYLDN :WRJURXQG
&XUUHQW,QSXW
0RGH /RZ1RLVH1RUPDORU:LGH%DQGZLGWK
)XOOV.DOH6HQVLWLYLW\
/RZ1RLVH I$WRQ$LQDVHTXHQ.H
1RUPDO I$WR$LQDVHTXHQ.H
:LGH%DQGZLGWK
)dN+] I$WR$LQDVHTXHQ.H
)!N+] I$WR$LQDVHTXHQ.H
'\QDPL.5HVHUYH !G%ZLWKQRVLJQDOILOWHUV
)UHTXHQ.\5HVSRQVH
/RZ1RLVH G%DW+] 1RUPDO G%DWN+]
:LGH%DQGZLGWK G%DW0+]
,PSHGDQ.H
/RZ1RLVH N :DW+]
1RUPDO :DWN+]
:LGH%DQGZLGWK :DWN+]
1RLVH
/RZ1RLVH I$+]DW+]
1RUPDO I$+]DWN+]
:LGH%DQGZLGWK S$
+]DWN+]
*DLQ$..XUD.\PLGEDQG dW\S
/LQH)LOWHU DWWHQXDWHV+]
*URXQGLQJ %1&VKLHOG.DQEHJURXQGHGRUIORDWHGYLDN :WRJURXQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 173/217
$SSHQGL[$63(&,),&$7,216
$
5HIHUHQ.H&KDQQHO
77/,QSXWUHDUSDQHO
)UHTXHQ.\5DQJH +]WR0+]
$QDORJ,QSXWIURQWSDQHO
,PSHGDQ.H 0:S)6LQXVRLGDO,QSXW
/HYHO 9UPV
)UHTXHQ.\5DQJH +]WR0+]
6TXDUHZDYH,QSXW
/HYHO P9UPV
)UHTXHQ.\5DQJH +]WR0+]
1RWH/RZHUOHYHOV.DQEHXVHGZLWKWKHDQDORJ
LQSXWDWWKHH[SHQVHRILQ.UHDVHGSKDVHHUURUV
3KDVH
6HW5HVROXWLRQ LQ.UHPHQWV 1RLVHDWPV7&G%R.WDYHVORSH
,QWHUQDO5HIHUHQ.H dqUPV
([WHUQDO5HIHUHQ.H dqUPV#N+]
2UWKRJRQDOLW\
$.TXLVLWLRQ7LPH
,QWHUQDO5HIHUHQ.H LQVWDQWDQHRXVD.TXLVLWLRQ
([WHUQDO5HIHUHQ.H .\.OHVPV
5HIHUHQ.H)UHTXHQ.\0HWHU5HVROXWLRQ
P+]
'HPRGXODWRUDQG2XWSXW3UR.HVVLQJ
2XWSXW=HUR6WDELOLW\
'LJLWDO2XWSXWV 1R]HURGULIWRQDOOVHWWLQJV
'LVSOD\V 1R]HURGULIWRQDOOVHWWLQJV
$QDORJ2XWSXWV SSP&
+DUPRQL.5HMH.WLRQ G%
2XWSXW)LOWHUV
;<DQG5RXWSXWVRQO\7LPH&RQVWDQW VWRPVLQDVHTXHQ.H
6ORSHUROORII DQGG%R.WDYH
$OORXWSXWV
7LPH&RQVWDQW PVWRNVLQDVHTXHQ.H
6ORSH DQGG%R.WDYH
6\Q.KURQRXV)LOWHU2SHUDWLRQ $YDLODEOHIRU)+]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 174/217
$SSHQGL[$63(&,),&$7,216
$
2IIVHW $XWRDQG0DQXDORQ;DQGRU<)6
$EVROXWH3KDVH0HDVXUHPHQW$..XUD.\
dq
2V.LOODWRU
)UHTXHQ.\5DQJH +]WR0+]
6HWWLQJ5HVROXWLRQ P+]
$EVROXWH$..XUD.\ SSP
'LVWRUWLRQ7+' G%DWN+]DQGP9UPV
$PSOLWXGHUPV
5DQJH P9WR9
6HWWLQJ5HVROXWLRQ P9
$..XUD.\
6WDELOLW\ SSP&
2XWSXW
,PSHGDQ.H :
6ZHHS
$PSOLWXGH6ZHHS
2XWSXW5DQJH WR9UPV
/DZ /LQHDU
6WHS5DWH +]PD[LPXPPVVWHS
)UHTXHQ.\
2XWSXW5DQJH +]WR0+]
/DZ /LQHDURU/RJDULWKPL.6WHS5DWH +]PD[LPXPPVVWHS
$X[LOLDU\,QSXWV
$'&DQG
0D[LPXP,QSXW 9
5HVROXWLRQ P9
$..XUD.\ P9
,QSXW,PSHGDQ.H 0:S)
6DPSOH5DWH
$'&RQO\ N+]PD[
$'&DQG N+]PD[
7ULJJHU0RGH ,QWHUQDO([WHUQDORUEXUVW7ULJJHULQSXW 77/.RPSDWLEOH
2XWSXWV
&+&+2XWSXWV
)XQ.WLRQ ;<5T1RLVH5DWLR/RJ5DWLRDQG8VHU
(TXDWLRQV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 175/217
$SSHQGL[$63(&,),&$7,216
$
$PSOLWXGH 9IXOOV.DOHEXW.DSDEOHRIRSHUDWLQJ
WRIXOOV.DOH
,PSHGDQ.H N :8SGDWH5DWH
;<RU5
7&dV 0+]
PVd7&dPV 0+]RUN+]7&tPV N+]
$OORWKHURXWSXWV N+]
6LJQDO0RQLWRU
$PSOLWXGH 9)6
,PSHGDQ.H N :
$X[LOLDU\'$2XWSXWDQG
0D[LPXP2XWSXW 9
5HVROXWLRQ P9
2XWSXW,PSHGDQ.H N :
ELW'LJLWDO3RUW
0RGH WROLQHV.DQEH.RQILJXUHGDVLQSXWVZLWKWKH
UHPDLQGHUEHLQJRXWSXWV
6WDWXV (D.KRXWSXWOLQH.DQEHVHWKLJKRUORZDQGHD.K
LQSXWOLQHUHDGWRDOORZLQWHUD.WLRQZLWKH[WHUQDO
HTXLSPHQW
7ULJJHU,QSXW ([WUDOLQHD.WVDVH[WUDWULJJHULQSXW
5HIHUHQ.H2XWSXW
:DYHIRUP WR9UH.WDQJXODUZDYH
,PSHGDQ.H 77/.RPSDWLEOH
3RZHU/RZ9ROWDJH 9DWP$UHDUSDQHOSLQ',1
.RQQH.WRUIRUSRZHULQJ(**SUHDPSOLILHUV
'DWD6WRUDJH
'DWD%XIIHU
6L]H NuELWGDWDSRLQWVPD\EHRUJDQL]HGDV
îNîNîNîNHW.
0D[6WRUDJH5DWH
)URP/,$ XSWRELWYDOXHVSHUVH.RQG
)URP$'& XSWRELWYDOXHVSHUVH.RQG
8VHU6HWWLQJV
8SWR.RPSOHWHLQVWUXPHQWVHWWLQJV.DQEH
VDYHGRUUH.DOOHGDWZLOOIURPQRQYRODWLOH
PHPRU\
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 176/217
$SSHQGL[$63(&,),&$7,216
$
,QWHUID.HV
56,((($VH.RQG56SRUWLV
SURYLGHGWRDOORZGDLV\.KDLQ.RQQH.WLRQDQG
.RQWURORIXSWRXQLWVIURPDVLQJOH56
.RPSXWHUSRUW
*HQHUDO3RZHU5HTXLUHPHQWV
9ROWDJH 9$&
)UHTXHQ.\ +]
3RZHU 9$0D[
'LPHQVLRQV
:LGWK óPP
'HSWK PP
+HLJKW
:LWKIHHW PP
:LWKRXWIHHW óPP
:HLJKW OENJ
$OOVSH.LIL.DWLRQVVXEMH.WWR.KDQJHZLWKRXWQRWLIL.DWLRQ
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 177/217
3LQRXWV$SSHQGL[%
%
%56&RQQH.WRU3LQRXW
)LJXUH%56DQG$8;56&RQQH.WRU)HPDOH
3LQ )XQ.WLRQ 'HV.ULSWLRQ
5;' 'DWD,Q
7;' 'DWD2XW
*1' 6LJQDO*URXQG
576 5HTXHVWWR6HQG$OZD\V9
$OORWKHUSLQVDUHQRW.RQQH.WHG
%3UHDPSOLILHU3RZHU&RQQH.WRU3LQRXW
)LJXUH%3UHDPSOLILHU3RZHU&RQQH.WRU
3LQ )XQ.WLRQ
9
*URXQG
9
3LQVDQGDUHQRW.RQQH.WHG6KHOOLVVKLHOGJURXQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 178/217
$SSHQGL[%3,12876
%
%'LJLWDO,23RUW&RQQH.WRU
)LJXUH%'LJLWDO,23RUW&RQQH.WRU
ELW77/.RPSDWLEOHLQSXWRXWSXWSRUWZLWKHD.KELWEHLQJ.RQILJXUDEOHDVDQLQSXWRU
RXWSXW,I.RQILJXUHGDVDQRXWSXWWKHELWVWDWXV.DQEHVHWDQGLI.RQILJXUHGDVDQ
LQSXWLW.DQEHUHDGIURPWKHIURQWSDQHORUYLDWKH.RPSXWHULQWHUID.HV(D.KRXWSXW
OLQH.DQGULYHWKUHH/677/ORDGVDQGHD.KLQSXWSUHVHQWVRQH/677/ORDG7KH
.RQQH.WRUZLOOPDWHZLWKDSLQ,'&KHDGHUSOXJQRWVXSSOLHG7KHSLQRXWLVDV
IROORZV
3LQ )XQ.WLRQ
*URXQG
*URXQG
'
*URXQG
'
*URXQG
'
*URXQG
'
*URXQG
'
*URXQG
' *URXQG
'
*URXQG
'
*URXQG
77/7ULJJHU,QSXW
9
'/HDVW6LJQLIL.DQW%LW
'0RVW6LJQLIL.DQW%LW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 179/217
'HPRQVWUDWLRQ3URJUDPV$SSHQGL[&
&
&6LPSOH7HUPLQDO(PXODWRU
7KLVLVDVKRUWWHUPLQDOHPXODWRUZLWKPLQLPDOID.LOLWLHVZKL.KZLOOUXQRQD3&.RPSDWLEOH.RPSXWHULQD
0L.URVRIW*:%$6,&RU4XL.N%$6,&HQYLURQPHQWRU.DQEH.RPSLOHGZLWKDVXLWDEOH.RPSLOHU
0,1,7(50)HE
&/635,17/RNLQ56SDUDPHWHUVPXVWEHVHWWREDXG'$7$ELWVVWRS
ELWDQGHYHQSDULW\
35,17+LW(6&!NH\WRH[LW
23(1&20(&6'6)255$1'20$6
21(5525*272
:+,/(
%,1.(<,)%&+57+(1&/26(21(5525*272(1'
,)%!7+(135,17%
///2&
,)//!7+(1$,1387//35,17$
:(1'
35,17(552512(555(680(
&56&RQWURO3URJUDPZLWK+DQGVKDNHV
56&20%$6LVDXVHULQWHUID.HSURJUDPZKL.KLOOXVWUDWHVWKHSULQ.LSOHVRIWKHH.KRKDQGVKDNH7KHSURJUDP
ZLOOUXQRQD3&.RPSDWLEOH.RPSXWHUHLWKHULQD0L.URVRIW*:%$6,&RU4XL.N%$6,&HQYLURQPHQWRULQ
.RPSLOHGIRUP
7KHVXEURXWLQHVLQ56&20DUHUH.RPPHQGHGIRULQ.RUSRUDWLRQLQWKHXVHUVRZQSURJUDPV
56&20)HE
&/635,17/RNLQ56SDUDPHWHUVPXVWEHVHWWREDXGGDWDELWVVWRS
ELWHYHQSDULW\
23(1&20(&6'6)255$1'20$6
&5&+5 DUULDJHUHWXUQ
PDLQORRS
:+,/( LQILQLWHORRS
,1387RPPDQGWRH[LW% QRRPPDVDUHDOORZHGLQ%
,)%7+(1(1'
%%&5 DSSHQGDDUULDJHUHWXUQ
*268% RXWSXWWKHRPPDQG%
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 180/217
$SSHQGL[&'(021675$7,21352*5$06
&
*268%35,17= UHDGDQGGLVSOD\UHVSRQVH
,)$"7+(1*268%*268% LI"SURPSWIHWK67$786
DQGGLVSOD\PHVVDJH
:(1' UHWXUQWRVWDUWRIORRS
RXWSXWWKHVWULQJ%21(5525*272 HQDEOHHUURUWUDSSLQJ
,)/2&!7+(1$,1387/2& OHDULQSXWEXIIHU
21(5525*272 GLVDEOHHUURUWUDSSLQJ
)25-72/(1% /(1%LVQXPEHURIE\WHV
&0,'%-35,17& VHQGE\WH
:+,/(/2&:(1' ZDLWIRUE\WHLQLQSXWEXIIHU
$,1387 UHDGLQSXWEXIIHU
,)$!&7+(135,17KDQGVKDNHHUURULQSXWE\WHVKRXOGEHHKR
1(;7- QH[WE\WHWREHVHQWRU
5(7851 UHWXUQLIQRPRUHE\WHV
UHDGUHVSRQVH
$=
:+,/($!$1'$!" UHDGXQWLOSURPSWUHHLYHG
==$ DSSHQGQH[WE\WHWRVWULQJ
:+,/(/2&:(1' ZDLWIRUE\WHLQLQSXWEXIIHU
$,1387 UHDGE\WHIURPEXIIHU
:(1' QH[WE\WHWREHUHDG
5(7851 UHWXUQLILWLVDSURPSW
IHWKVWDWXVE\WH
%67&5 67LVWKHVWDWXVRPPDQG
*268% RXWSXWWKHRPPDQG
*268% UHDGUHVSRQVHLQWR=
67$7869$/= RQYHUWWRLQWHJHU
5(7851
LQVWUXPHQWHUURUPHVVDJH
35,17(UURUSURPSWVWDWXVE\WH67$786ELWVDUHGHILQHGLQPDQXDO
35,17
5(7851,2HUURUURXWLQH
5(680(
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 181/217
$SSHQGL[&'(021675$7,21352*5$06
&
&*3,%8VHU,QWHUID.H3URJUDP
*3&20%$6LVDXVHULQWHUID.HSURJUDPZKL.KLOOXVWUDWHVWKHSULQ.LSOHVRIWKHXVHRIWKHVHULDOSROOVWDWXV
E\WHWR.RRUGLQDWHWKH.RPPDQGDQGGDWDWUDQVIHU
7KHSURJUDPUXQVXQGHU0L.URVRIW*:%$6,&RU4XL.N%$6,&RQD3&.RPSDWLEOH.RPSXWHUILWWHGZLWKD 1DWLRQDO,QVWUXPHQWV,(((LQWHUID.H.DUGDQGWKH*3,%&20VRIWZDUHLQVWDOOHGLQWKH&21),*6<6ILOH
7KHSURJUDP%,%0DQGWKHILUVWWKUHHOLQHVRI*3&20DUHVXSSOLHGE\WKH.DUGPDQXID.WXUHUDQGPXVWEH
WKH.RUUH.WYHUVLRQIRUWKHSDUWL.XODUYHUVLRQRIWKHLQWHUID.H.DUGLQXVH7KHLQWHUID.H.DUGPD\EHVHWXS
XVLQJWKHSURJUDP,%&21)(;(WRVHW(2,ZLWKWKHODVWE\WHRI:ULWHLQZKL.K.DVHQRWHUPLQDWRULV
UHTXLUHG5HDGRSHUDWLRQVDUHDXWRPDWL.DOO\WHUPLQDWHGRQ(2,ZKL.KLVDOZD\VVHQWE\WKHOR.NLQDPSOLILHU
1RUPDOO\WKHRSWLRQV.DOOHGKLJKVSHHGWLPLQJLQWHUUXSWMXPSHUVHWWLQJDQG'0$.KDQQHOVKRXOGDOOEH
GLVDEOHG
7KHSULQ.LSOHVRIXVLQJWKH6HULDO3ROO6WDWXV%\WHWR.RQWUROGDWDWUDQVIHUDVLPSOHPHQWHGLQWKHPDLQORRSRI
*3&20DUHUH.RPPHQGHGIRULQ.RUSRUDWLRQLQWKHXVHUVRZQSURJUDPV
*3&20)HEWKHIROORZLQJWKUHHOLQHVDQG%,%0DUHVXSSOLHGE\WKH
PDQXIDWXUHURIWKH*3,%DUGPXVWEHRUUHWYHUVLRQ
&/($5,%,1,7,%,1,7,%,1,7%/2$'%,%0,%,1,7
&$//,%,1,7,%),1',%75*,%&/5,%3&7,%6,&,%/2&,%33&,%%1$,%21/,%56&
,%65(,%569,%3$',%6$',%,67,%'0$,%(26,%702,%(27,%5'),%:57)
,%75$3
&$//,%,1,7,%*76,%&$&,%:$,7,%32.(,%:57,%:57$,%&0',%&0'$,%5'
,%5'$,%6723,%533,%563,%',$*,%;75&,%5',,%:57,,%5',$,%:57,$,%67$
,%(55,%&17
&/635,17'(9,&(0867%(6(772&57(50,1$725DVVLJQDHVVRGHWRLQWHUIDHERDUG
%'1$0(*3,%
&$//,%),1'%'1$0(*3,%
,)*3,%7+(135,17ERDUGDVVLJQPHQWHUURU(1'
VHQG,17(5)$&(&/($5
&$//,%6,&*3,%
VHWEXVDGGUHVVDVVLJQDHVVRGHWRGHYLH
68&&(66
:+,/(68&&(66
,1387%86$''5(66$
'(91$0('(95,*+7675$/(1675$
&$//,%),1''(91$0('(9 DVVLJQDHVVRGH
,)'(97+(135,17GHYLHDVVLJQPHQWHUURU(1'
$&+5*268% WHVWZULWH&5!WREXV
,),%67$!7+(168&&(66
,),%67$$1',%(557+(1%((335,1712'(9,&($77+$7$''5(66
:(1'
VHQG6(/(&7(''(9,&(&/($5
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 182/217
$SSHQGL[&'(021675$7,21352*5$06
&
&$//,%&/5'(9
VHWWLPHRXWWRVHRQG
9&$//,%702'(99
VHWVWDWXVSULQWIODJ
,1387'LVSOD\VWDWXVE\WH\Q5
,)5<255\7+(1'6(/6('6
PDLQORRS:+,/( LQILQLWHORRS
,1387RPPDQGWRH[LW$
,)$7+(1(1'
$$&+5 WHUPLQDWRULV&5!
*268% ZULWH$WREXV
6 LQLWLDOL]H6
:+,/(6$1' ZKLOHRPPDQGQRWRPSOHWH
*268% VHULDOSROOUHWXUQV6
,)'67+(135,1766
,)6$1'7+(1*268%35,17%UHDGEXVLQWR%DQGSULQW
:(1'
,)6$1'7+(135,17SDUDPHWHUHUURU
,)6$1'7+(135,17LQYDOLGRPPDQG
:(1'
HQGRIPDLQORRS
ZULWHVWULQJWREXV
&$//,%:57'(9$5(7851
UHDGVWULQJIURPEXV
%63$&(%LVEXIIHU
&$//,%5''(9%5(7851
VHULDOSROO&$//,%563'(965(7851
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 183/217
&DEOH'LDJUDPV$SSHQGL['
'
'56&DEOH'LDJUDPV
8VHUVZKR.KRRVHWRXVHWKH56LQWHUID.HWR.RQQH.WWKHPRGHOOR.NLQ
DPSOLILHUWRDVWDQGDUGVHULDOSRUWRQD.RPSXWHUZLOOQHHGWRXVHRQHRIWZRW\SHVRI
.DEOH7KHRQO\GLIIHUHQ.HEHWZHHQWKHPLVWKHQXPEHURISLQVXVHGRQWKH.RQQH.WRU
ZKL.KJRHVWRWKH.RPSXWHU2QHKDVSLQVDQGWKHRWKHUERWKDUHQXOOPRGHP
DOVR.DOOHGPRGHPHOLPLQDWRU.DEOHVLQWKDWVRPHRIWKHSLQVDUH.URVV.RQQH.WHG
8VHUVZLWKUHDVRQDEOHSUD.WL.DOVNLOOV.DQHDVLO\DVVHPEOHWKHUHTXLUHG.DEOHVIURP
SDUWVZKL.KDUHZLGHO\DYDLODEOHWKURXJK.RPSXWHUVWRUHVDQGHOH.WURQL.V.RPSRQHQWV
VXSSOLHUV7KHUHTXLUHGLQWHU.RQQH.WLRQVDUHJLYHQLQILJXUHV'DQG'
)LJXUH',QWHU.RQQH.WLQJ56&DEOH:LULQJ'LDJUDP
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 184/217
$SSHQGL['&$%/(',$*5$06
'
)LJXUH',QWHU.RQQH.WLQJ56&DEOH:LULQJ'LDJUDP
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 185/217
'HIDXOW6HWWLQJV$SSHQGL[(
(
$XWR'HIDXOW)XQ.WLRQ
7KH$XWR'HIDXOW.RPSXWHU.RPPDQG$')VHWVWKHPRGHOV.RQWUROVDQG
RXWSXWGLVSOD\VDVIROORZV
0DLQ'LVSOD\
'LVSOD\VWKH$&*DLQIXOOV.DOHVHQVLWLYLW\UHIHUHQ.HSKDVHWLPH.RQVWDQWUHIHUHQ.H
SKDVHDQGRV.LOODWRUIUHTXHQ.\.RQWUROVRQWKHOHIWKDQGVLGH2QWKHULJKWKDQGVLGH
WKHGLVSOD\PRGHLVVHWWRWZREDUJUDSKVDQGWZRODUJHGLJLWDOGLVSOD\VVKRZLQJ
VLJQDOPDJQLWXGHDVDSHU.HQWDJHRIIXOOV.DOH;.KDQQHODQG<.KDQQHORXWSXWVLQ
YROWVDQGVLJQDOSKDVHLQGHJUHHV
7KHWZHOYHEDVL.LQVWUXPHQW.RQWUROVDUHVHWWRWKHIROORZLQJYDOXHV
)XOOV.DOHVHQVLWLYLW\ P9
$&*DLQ G%7LPH.RQVWDQW PV
2V.LOODWRUIUHTXHQ.\ +]
2V.LOODWRUDPSOLWXGH 9UPV
$8;'$&RXWSXW 9
$8;'$&RXWSXW 9
5HI3KDVH
3KDVHTXDGUDQW
;.KDQQHORXWSXWRIIVHW
<.KDQQHORXWSXWRIIVHW
5HI+DUPRQL. VW
7KHUHPDLQLQJLQVWUXPHQW.RQWUROVD..HVVHGYLDWKHPHQXVDUHVHWDVIROORZV
6LJQDO&KDQQHO
,QSXW.RXSOLQJ *URXQG
,QSXWPRGH 6LQJOHHQGHGYROWDJHPRGH
,QSXW.RQQH.WRU $LQSXW.RQQH.WRU
/LQHQRW.KILOWHU 2II
$XWRPDWL.$&*DLQ 2II
5HIHUHQ.H&KDQQHO
5HIHUHQ.HPRGH ,QWHUQDO
5HIHUHQ.HKDUPRQL. VW
2XWSXW)LOWHUV
6ORSH G%R.WDYH
6\Q.7LPH&RQVWDQW 21
2XWSXW2IIVHW([SDQG
2IIVHW6WDWXV 2II
2XWSXW([SDQG 2II
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 186/217
$SSHQGL[('()$8/76(77,1*6
(
2XWSXW(TXDWLRQV
(TXDWLRQ ;;u;;]HUR
(TXDWLRQ ;;u;;]HUR
)UHTXHQ.\6ZHHS
6WDUW)UHTXHQ.\ +]
6WRS)UHTXHQ.\ +]6WHS6L]H +]
7LPH6WHS V
$UPHG 1R
/DZ /RJDULWKPL.
$PSOLWXGH6ZHHS
6WDUW$PSOLWXGH 9
6WRS$PSOLWXGH 9
6WHS6L]H 9
7LPH6WHS V
$UPHG 1R
&RQILJXUDWLRQ
2SHUDWLQJPRGH 6LQJOH5HIHUHQ.H
'LVSOD\V.UHHQ 7XUQHGRQ
&+DQDORJRXWSXW ;9)6
&+DQDORJRXWSXW <9)6
$QDORJ2XWSXWV )DVW0RGH
1RLVH0HDVXUHPHQW0RGH 2))
1RLVH%XIIHU/HQJWK VH.RQGV
&XUYH%XIIHU
7LPH3RLQW H PV/HQJWK
&XUYH6HOH.W
6HOH.WHG.XUYH ;
$X[LOLDU\,2
'$&DQG'$& 9
$'&7ULJJHU0RGH PV
'LJLWDO3RUW
'WR'GLUH.WLRQ $OO.RQILJXUHGDVRXWSXWV
'WR'VWDWXV /RJL.]HUR
7KH$XWR'HIDXOWIXQ.WLRQRQWKHIURQWSDQHO$XWR)XQ.WLRQVPHQXDQGWKH$')
.RPSXWHU.RPPDQGVHWWKHPRGHOV.RQWUROVDQGRXWSXWGLVSOD\VDVDERYHDQGLQ
DGGLWLRQVHWVWKH.RPPXQL.DWLRQVLQWHUID.HSDUDPHWHUVDVIROORZV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 187/217
$SSHQGL[('()$8/76(77,1*6
(
566HWWLQJV
%DXGUDWH
'DWDELWV 3DULW\
'HOLPLWHU
$GGUHVV
&KDUD.WHUH.KR 2Q
3DULW\ (YHQ3URPSW.KDUD.WHU 2Q
*3,%6HWWLQJV
*3,%$GGUHVV
7HUPLQDWRU >&5@>/)@
7HVW(.KR 2II
654PDVNE\WH
'HOLPLWHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 188/217
$SSHQGL[('()$8/76(77,1*6
(
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 189/217
$OSKDEHWL.DO/LVWLQJRI&RPPDQGV$SSHQGL[)
)
$&*$,1>Q@ $&*DLQ.RQWURO
6HWVWKHJDLQRIWKHVLJQDO.KDQQHODPSOLILHUD..RUGLQJWRWKHIROORZLQJWDEOH
Q $&*DLQ
G% G%
G%
G%
G%
G%
G%
G%
G%
G%
G%
$'&>@Q 5HDGDX[LOLDU\DQDORJWRGLJLWDOLQSXWV7KHUHVSRQVHIRU$'&WR$'&QWRUHVSH.WLYHO\LQIL[HGSRLQWPRGHLVDQ
LQWHJHULQWKHUDQJHWR.RUUHVSRQGLQJWRYROWDJHVIURP9WR
9DQGLQIORDWLQJSRLQWPRGHLWLVLQYROWV
$')Q $XWR'HIDXOW
7KH$').RPPDQGSHUIRUPVDQDXWRGHIDXOWRSHUDWLRQD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q 6LJQLIL.DQ.H
$OOLQVWUXPHQWVHWWLQJVDUHUHWXUQHGWRWKHLUID.WRU\GHIDXOWYDOXHV
$OOLQVWUXPHQWVHWWLQJVZLWKWKHH[.HSWLRQRIWKH.RPPXQL.DWLRQVVHWWLQJVDUHUHWXUQHGWRWKHLUID.WRU\GHIDXOWYDOXHV
127(,IWKH$').RPPDQGLVXVHGZKHQWKH.RPPXQL.DWLRQVVHWWLQJVDUHDW
YDOXHVRWKHUWKDQWKHLUGHIDXOWVHWWLQJVWKHQ.RPPXQL.DWLRQZLOOEHORVW
$41 $XWR3KDVHDXWRTXDGUDWXUHQXOO
$6 3HUIRUPDQ$XWR6HQVLWLYLW\RSHUDWLRQ
$60 3HUIRUPDQ$XWR0HDVXUHRSHUDWLRQ
$67$57>@>Q@ 2V.LOODWRUDPSOLWXGHVZHHSVWDUWDPSOLWXGH6HWVWKHVWDUWDPSOLWXGHIRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUDPSOLWXGHLQ
WKHUDQJHWR9
,QIL[HGSRLQWPRGHQLVLQPLOOLYROWVUPVDQGLQIORDWLQJSRLQWPRGHQLVLQYROWVUPV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 190/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
$67(3>@>Q@ 2V.LOODWRUDPSOLWXGHVZHHSVWHSVL]H
6HWVWKHDPSOLWXGHVWHSVL]HIRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRU
DPSOLWXGHLQWKHUDQJHWR9
,QIL[HGSRLQWPRGHQLVLQPLOOLYROWVUPVDQGLQIORDWLQJSRLQWPRGHQLVLQYROWVUPV
$6723>@>Q@ 2V.LOODWRUDPSOLWXGHVZHHSVWRSDPSOLWXGH6HWVWKHVWRSDPSOLWXGHIRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUDPSOLWXGHLQ
WKHUDQJHWR9
,QIL[HGSRLQWPRGHQLVLQPLOOLYROWVUPVDQGLQIORDWLQJSRLQWPRGHQLVLQYROWVUPV
$8720$7,&>Q@ $&*DLQDXWRPDWL..RQWURO
Q 6WDWXV
$&*DLQLVXQGHUPDQXDO.RQWUROHLWKHUXVLQJWKHIURQWSDQHORUWKH$&*$,1
.RPPDQG
$XWRPDWL.$&*DLQ.RQWUROLVD.WLYDWHGZLWKWKHJDLQEHLQJDGMXVWHGD..RUGLQJWR
WKHIXOOV.DOHVHQVLWLYLW\VHWWLQJ
$;2 $XWR2IIVHW
%8567733>Q@ 6HWVWKHEXUVWPRGHWLPHSHUSRLQWUDWHIRU$'&DQG$'&
QVHWVWKHWLPHSHUSRLQWIRUWKH9DULDEOH5DWHEXUVWPRGHVLQPL.URVH.RQGVDV
IROORZV
:KHQVWRULQJRQO\WR$'&
LH7$'&7$'&7$'&7$'&7$'&DQG7$'&
dQd
:KHQVWRULQJWR$'&DQG$'&
LH7$'&7$'&7$'&7$'&7$'&DQG7$'&
dQd
%<7(>Q@ 'LJLWDOSRUWRXWSXW.RQWURO
7KHYDOXHRIQLQWKHUDQJHWRGHWHUPLQHVWKHELWVWREHRXWSXWRQWKRVHOLQHVRI
WKHUHDUSDQHOGLJLWDOSRUWWKDWDUH.RQILJXUHGDVRXWSXWV+HQ.HIRUH[DPSOHLI
3257',5DQG%<7(DOORXWSXWVDUHORZDQGZKHQ%<7(DOODUH
KLJK
&%'>Q@ &XUYHEXIIHUGHILQH'HILQHVZKL.KGDWDRXWSXWVDUHVWRUHGLQWKH.XUYHEXIIHUZKHQVXEVHTXHQW7'WDNH
GDWD7'7WDNHGDWDWULJJHUHGRU7'&WDNHGDWD.RQWLQXRXVO\.RPPDQGVDUH
LVVXHG8SWRRULQGXDOUHIHUHQ.HDQGGXDOKDUPRQL.PRGHV.XUYHVRURXWSXWV
PD\EHD.TXLUHGDVVSH.LILHGE\WKH&%'SDUDPHWHU
7KH&%'SDUDPHWHULVDQLQWHJHUEHWZHHQDQGEHLQJWKHGH.LPDOHTXLYDOHQW
RIDELWELQDU\ZRUG,QHLWKHURIWKHGXDOUHIHUHQ.HPRGHVLWLVDQLQWHJHUEHWZHHQ
DQGEHLQJWKHGH.LPDOHTXLYDOHQWRIDELWELQDU\QXPEHU:KHQD
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 191/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
JLYHQELWLVDVVHUWHGWKH.RUUHVSRQGLQJRXWSXWLVVHOH.WHGIRUVWRUDJH:KHQDELWLV
QHJDWHGWKHRXWSXWLVQRWVWRUHG7KHELWIXQ.WLRQDQGUDQJHIRUHD.KRXWSXWDUHVKRZQ
LQWKHWDEOHEHORZ
%LW 'H.LPDOYDOXH 2XWSXWDQGUDQJH
;2XWSXW)6
<2XWSXW)6 0DJQLWXGH2XWSXWWR)6
3KDVH
6HQVLWLYLW\VHWWLQJWR,02'(
1RLVHWR)6
5DWLR)6
/RJUDWLRWR
$'&9
$'&9
$'&9
$'&9
'$&9
'$&9
(9(17YDULDEOHWR
5HIHUHQ.HIUHTXHQ.\ELWVWRPLOOLKHUW]
5HIHUHQ.HIUHTXHQ.\ELWVWRPLOOLKHUW]
'XDOPRGHVRQO\
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6
3KDVH2XWSXW
6HQVLWLYLW\VHWWLQJWR,02'(
SRLQWVDUHDYDLODEOHIRUGDWDVWRUDJHVKDUHGHTXDOO\EHWZHHQWKHVSH.LILHG
.XUYHV)RUH[DPSOHLIRXWSXWVDUHVWRUHGWKHQWKHPD[LPXPQXPEHURIVWRUDJH
SRLQWVZRXOGEHLH7KHRQO\H[.HSWLRQWRWKLVUXOHLVWKDWWKH
)UHTXHQ.\.XUYH.XUYHVDQGR..XSLHVWKHHTXLYDOHQWRIDQ\WZRRWKHU.XUYHV
7KH/(1.RPPDQGVHWVWKHD.WXDO.XUYHOHQJWKZKL.K.DQQRWWKHUHIRUHEHORQJHUWKDQ
GLYLGHGE\WKHQXPEHURI.XUYHVVHOH.WHG,IPRUH.XUYHVDUHUHTXHVWHGWKDQ.DQ
EHVWRUHGZLWKWKH.XUUHQWEXIIHUOHQJWKWKHQWKHEXIIHUOHQJWKZLOOEHDXWRPDWL.DOO\
UHGX.HG,WVD.WXDOOHQJWK.DQRI.RXUVHEHGHWHUPLQHGE\VHQGLQJWKH/(1.RPPDQG
ZLWKRXWDSDUDPHWHU
7KHUHDVRQZK\ELWDQGIRUGXDOUHIHUHQ.HPRGHVELWZKL.KVWRUHERWKWKH
VHQVLWLYLW\DQGWKH,02'(VHWWLQJDUHQHHGHGLVWRDOORZWKHLQVWUXPHQWWRWUDQVIHU
WKHD.TXLUHG.XUYHVWRWKH.RPSXWHULQIORDWLQJSRLQWPRGH:LWKRXWWKLVLQIRUPDWLRQ
WKHXQLWZRXOGQRWEHDEOHWRGHWHUPLQHWKH.RUUH.W.DOLEUDWLRQWRDSSO\
1RWHWKDWWKH&%'.RPPDQGGLUH.WO\GHWHUPLQHVWKHDOORZDEOHSDUDPHWHUVIRUWKH'&
'&%DQG'&7.RPPDQGV,WDOVRLQWHUD.WVZLWKWKH/(1.RPPDQGDQGDIIH.WVWKH
YDOXHVUHSRUWHGE\WKH0.RPPDQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 192/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
6LQ.HWKHUHIHUHQ.HIUHTXHQ.\UHTXLUHVELWZLGHGDWDSRLQWVLWR..XSLHVWZR.XUYH
SRVLWLRQV)RUHDVHRIXVHLIELWLVVHOH.WHGIRUVWRUDJHWKHQELWZLOOEH
DXWRPDWL.DOO\VHOH.WHGDVZHOODQGYL.HYHUVD
127($WOHDVWRQHRIWKH.XUYHVVHOH.WHGIRUVWRUDJHLQWKH.XUYHEXIIHUPXVWEH
.KRVHQIURPWKRVHPDUNHGZLWKDQDVWHULVNLQWKHDERYHWDEOH
&+Q>Q@ $QDORJRXWSXW.RQWURO
'HILQHVZKDWRXWSXWVDSSHDURQWKH&+DQG&+.RQQH.WRUVRQWKHUHDUSDQHO
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRII)$6702'(WKHVHOH.WLRQLV
D..RUGLQJWRWKHIROORZLQJWDEOH
Q 6LJQDO
;9)6
<9)6
0DJQLWXGH9)6
3KDVH99
3KDVH99 1RLVH9)6
5DWLRî;$'&
/RJ5DWLRORJu;$'&
(TXDWLRQ
(TXDWLRQ
'XDOPRGHVRQO\
;9)6
<9)6
0DJQLWXGH)6
3KDVH99 3KDVH99
QLV.RPSXOVRU\DQGLVHLWKHUIRU&+RUIRU&+
1RWHQLVRQO\SHUPLWWHGLIWKHQRLVHPHDVXUHPHQWPRGHLVRQ
12,6(02'(RULIWKHSUHVHQWVHWWLQJVRIRXWSXWILOWHUVORSHDQGWLPH.RQVWDQW
DUHZLWKLQWKHSHUPLWWHGUDQJHDQGWKHV\Q.KURQRXVWLPH.RQVWDQW.RQWUROLVRII
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQVLQJOHRUYLUWXDOUHIHUHQ.HPRGHWKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJWDEOHV
QLH&+RXWSXWQ 6LJQDO
;9)6
QLH&+RXWSXW
Q 6LJQDO
<9)6
0DJQLWXGH9)6
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 193/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQGXDOKDUPRQL.RUGXDOUHIHUHQ.HPRGHWKHVHOH.WLRQLVIL[HGD..RUGLQJWRWKH
IROORZLQJWDEOHV
QLH&+RXWSXW
Q 6LJQDO
;9)6
QLH&+RXWSXW
Q 6LJQDO
;9)6
&3>Q@ ,QSXW.RQQH.WRU.RXSOLQJPRGH.RQWURO
7KHYDOXHRIQVHWVWKHLQSXW.RXSOLQJPRGHD..RUGLQJWRWKHIROORZLQJWDEOH
Q &RXSOLQJPRGH
)DVW
6ORZ
'$&>@Q>Q@ $X[LOLDU\'$&RXWSXW.RQWUROV
7KHILUVWSDUDPHWHUQZKL.KVSH.LILHVWKH'$&LV.RPSXOVRU\DQGLVHLWKHURU
7KHYDOXHRIQVSH.LILHVWKHYROWDJHWREHRXWSXW
,QIL[HGSRLQWPRGHLWLVDQLQWHJHULQWKHUDQJHWR.RUUHVSRQGLQJWR
YROWDJHVIURP9WR9DQGLQIORDWLQJSRLQWPRGHLWLVLQYROWV
'&>@Q 'XPSD.TXLUHG.XUYHVWR.RPSXWHU
,QIL[HGSRLQWPRGH.DXVHVDVWRUHG.XUYHWREHGXPSHGYLDWKH.RPSXWHULQWHUID.HLQ
GH.LPDOIRUPDW
,QIORDWLQJSRLQWPRGHWKH6(1.XUYHELWLQ&%'PXVWKDYHEHHQVWRUHGLIRQHRU
PRUHRIWKHIROORZLQJRXWSXWVDUHUHTXLUHGLQRUGHUWKDWWKHOR.NLQDPSOLILHU.DQ
SHUIRUPWKHQH.HVVDU\.RQYHUVLRQIURP)6WRYROWVRUDPSV;<0DJQLWXGH
1RLVH6LPLODUO\LIWKHGXDOUHIHUHQ.HRUKDUPRQL.PRGHVDUHD.WLYHWKHQWKH6(1
.XUYHELWLQ&%'PXVWKDYHEHHQVWRUHGLQRUGHUWRSHUIRUPDVLPLODU.RQYHUVLRQ
IURP)6WRYROWVRUDPSVIRU;<DQG0DJQLWXGH
2QH.XUYHDWDWLPHLVWUDQVIHUUHG7KHYDOXHRIQLVWKHELWQXPEHURIWKHUHTXLUHG
.XUYHZKL.KPXVWKDYHEHHQVWRUHGE\WKHPRVWUH.HQW&%'.RPPDQG+HQ.HQ.DQ
UDQJHIURPWRRUWRLIDGXDOPRGHLVD.WLYH,IIRUH[DPSOH&%'KDGEHHQ
VHQWHTXLYDOHQWWRDVVHUWLQJELWVDQGWKHQWKH;DQG0DJQLWXGHRXWSXWVZRXOGEH
VWRUHG7KHSHUPLWWHGYDOXHVRIQZRXOGWKHUHIRUHEHDQGVRWKDW'&ZRXOGWUDQVIHUWKH;.KDQQHORXWSXW.XUYHDQG'&WKH0DJQLWXGH.XUYH
127(:KHQWUDQVIHUULQJWKH)UHTXHQ.\.XUYHZKL.KLVVDYHGZKHQELWLQWKH
&%'SDUDPHWHULVDVVHUWHGWKHLQVWUXPHQWDXWRPDWL.DOO\UHDGVWKHGDWDIRUHD.K
VWRUHGSRLQWLQERWKIUHTXHQ.\.XUYHVLHWKHORZHUDQGXSSHUELWVDQGVHQGVLW
DVDVLQJOHGDWDSRLQW
7KH.RPSXWHUSURJUDPVVXEURXWLQHZKL.KUHDGVWKHUHVSRQVHVWRWKH'&.RPPDQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 194/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
QHHGVWRUXQDSURJUDPORRSWKDW.RQWLQXHVXQWLODOOWKHGDWDKDVEHHQWUDQVIHUUHG
1RWHWKDWZKHQXVLQJWKLV.RPPDQGZLWKWKH*3,%LQWHUID.HWKHVHULDOSROOPXVWEH
XVHG$IWHUVHQGLQJWKH'&.RPPDQGSHUIRUPUHSHDWHGVHULDOSROOVXQWLOELWLVVHW
LQGL.DWLQJWKDWWKHLQVWUXPHQWKDVDQRXWSXWZDLWLQJWREHUHDG7KHQSHUIRUPUHSHDWHG
UHDGVLQDORRSZDLWLQJHD.KWLPHXQWLOELWLVVHWLQGL.DWLQJWKDWDQHZYDOXHLV
DYDLODEOH7KHORRSVKRXOG.RQWLQXHXQWLOELWLVVHWLQGL.DWLQJWKDWWKHWUDQVIHULV.RPSOHWHG
'&%Q 'XPSD.TXLUHG.XUYHVWR.RPSXWHULQELQDU\IRUPDW
7KLV.RPPDQG.DXVHVDVWRUHG.XUYHWREHGXPSHGYLDWKH.RPSXWHULQWHUID.HLQ
ELQDU\IRUPDWXVLQJWZRE\WHVSHUSRLQW$OO.XUYHVRWKHUWKDQWKHORZHUELWVRIWKH
UHIHUHQ.HIUHTXHQ.\.XUYH.XUYHXVHELW¶V.RPSOHPHQWHQ.RGLQJDQGDOOGDWD
SRLQWVDUHVHQWZLWKWKH06%ILUVW7KHQXPEHURIGDWDE\WHVVHQWLVWKHUHIRUHHTXDOWR
WZL.HWKH.XUUHQW.XUYHOHQJWK(D.KSRLQWLVVHQWLQIL[HGSRLQWPRGHWKHUHEHLQJQR
IORDWLQJSRLQWYHUVLRQRIWKH.RPPDQGDQGKHQ.HLIIORDWLQJSRLQWYDOXHVDUHUHTXLUHG
WKHXVHUPD\QHHGWRDGGLWLRQDOO\VWRUHDQGUHDGWKH6HQVLWLYLW\.XUYHDQGWKHQSHUIRUP
WKH.RUUH.WLRQLQKLVRZQVRIWZDUH,QRUGHUWRD.KLHYHWKHPD[LPXPWUDQVIHUUDWHQR
WHUPLQDWRUVDUHXVHGZLWKLQWKHWUDQVPLVVLRQDOWKRXJKWKHUHVSRQVHLVWHUPLQDWHG
QRUPDOO\DWWKHHQG
2QH.XUYHDWDWLPHLVWUDQVIHUUHG7KHYDOXHRIQLVWKHELWQXPEHURIWKHUHTXLUHG
.XUYHZKL.KPXVWKDYHEHHQVWRUHGE\WKHPRVWUH.HQW&%'.RPPDQG+HQ.HQ.DQ
UDQJHIURPWRLQ6LQJOH5HIHUHQ.H0RGHDQGWRLQWKHGXDOPRGHV,IIRU
H[DPSOH&%'KDGEHHQVHQWHTXLYDOHQWWRDVVHUWLQJELWVDQGWKHQWKH;DQG
0DJQLWXGHRXWSXWVZRXOGEHVWRUHG7KHSHUPLWWHGYDOXHVRIQZRXOGWKHUHIRUHEH
DQGVRWKDW'&%ZRXOGWUDQVIHUWKH;.KDQQHORXWSXW.XUYHDQG'&%WKH
0DJQLWXGH.XUYH
&XUYHVDQGVWRUHWKHUHIHUHQ.HIUHTXHQ.\LQPLOOLKHUW]:KHQXVLQJWKH'&%.RPPDQGDOWKRXJKQRWZLWKWKHRWKHU.XUYHWUDQVIHU.RPPDQGVERWK.XUYHVQHHGWR
EHWUDQVIHUUHGVHSDUDWHO\7KH\VKRXOGWKHQEH.RQYHUWHGWRWZRDUUD\VRILQWHJHU
YDOXHVDOORZLQJIRUWKHID.WWKDWWKHGDWDSRLQWVLQ.XUYHDUHXQVLJQHGELW
YDOXHVZKLOHWKRVHLQ.XUYHDUHVLJQHG¶V.RPSOHPHQWELWYDOXHVDOWKRXJKLQ
SUD.WL.HWKH\DUHQHYHUQHJDWLYH)LQDOO\WKH\VKRXOGEHDVVHPEOHGLQWRDVLQJOH.XUYH
XVLQJWKHIROORZLQJDOJRULWKP
5HIHUHQ.H)UHTXHQ.\îYDOXHLQ&XUYHYDOXHLQ&XUYH
7KH.RPSXWHUSURJUDPVVXEURXWLQHZKL.KUHDGVWKHUHVSRQVHVWRWKH'&%.RPPDQG
QHHGVWREHDEOHWRKDQGOHWKHSRWHQWLDOO\YHU\ODUJHGDWDEOR.NVNE\WHVLQWKH.DVH
RIRQHN.XUYHWKDW.DQEHJHQHUDWHG
127(:KHQXVLQJ56.RPPXQL.DWLRQVWKHLQWHUID.HPXVWEHVHWWRXVH
GDWDELWWUDQVPLVVLRQ
'&7Q 'XPSD.TXLUHG.XUYHVWR.RPSXWHULQWDEXODUIRUPDW
7KLV.RPPDQGLVVLPLODUWRWKH'&.RPPDQGGHV.ULEHGDERYHEXWDOORZVWUDQVIHURI
VHYHUDO.XUYHVDWDWLPHDQGRQO\RSHUDWHVLQIL[HGSRLQWPRGH6WRUHG.XUYHVDUH
WUDQVIHUUHGYLDWKH.RPSXWHULQWHUID.HLQGH.LPDOIRUPDW
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 195/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
,QVLQJOHUHIHUHQ.HPRGHWKH'&7SDUDPHWHULVDQLQWHJHUEHWZHHQDQG
EHLQJWKHGH.LPDOHTXLYDOHQWRIDELWELQDU\QXPEHU,QHLWKHURIWKHGXDOUHIHUHQ.H
PRGHVLWLVDQLQWHJHUEHWZHHQDQGEHLQJWKHGH.LPDOHTXLYDOHQWRID
ELWELQDU\QXPEHU:KHQDJLYHQELWLQWKHQXPEHULVDVVHUWHGWKH.RUUHVSRQGLQJ
.XUYHLVVHOH.WHGIRUWUDQVIHU:KHQDELWLVQHJDWHGWKH.XUYHLVQRWWUDQVIHUUHG7KH
ELW.RUUHVSRQGLQJWRHD.K.XUYHLVVKRZQLQWKHWDEOHEHORZ
%LW 'H.LPDOYDOXH 2XWSXWDQGUDQJH
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6
3KDVH
6HQVLWLYLW\VHWWLQJWR,02'(
1RLVHWR)6
5DWLR)6
/RJUDWLRWR
$'&9
$'&9
$'&9
$'&9
'$&9
'$&9
(9(17YDULDEOHWR
5HIHUHQ.HIUHTXHQ.\PLOOLKHUW]
'XDOPRGHVRQO\
;2XWSXW)6
<2XWSXW)6
0DJQLWXGH2XWSXWWR)6 3KDVH2XWSXW
6HQVLWLYLW\VHWWLQJWR,02'(
7KHYDOXHVRIWKHVHOH.WHG.XUYHVDWWKHVDPHVDPSOHSRLQWDUHWUDQVIHUUHGDVDJURXS
LQWKHRUGHURIWKHDERYHWDEOHVHSDUDWHGE\WKH.KRVHQGHOLPLWHU.KDUD.WHUDQG
WHUPLQDWHGZLWKWKHVHOH.WHGWHUPLQDWRU7KLV.RQWLQXHVXQWLODOOWKHSRLQWVKDYHEHHQ
WUDQVIHUUHG
127(:KHQWUDQVIHUULQJWKH)UHTXHQ.\.XUYHZKL.KLVVDYHGZKHQELWLQWKH
&%'SDUDPHWHULVDVVHUWHGWKHLQVWUXPHQWDXWRPDWL.DOO\UHDGVWKHGDWDIRUHD.K
VWRUHGSRLQWLQERWKIUHTXHQ.\.XUYHVLHWKHORZHUDQGXSSHUELWVDQGVHQGVLW DVDVLQJOHGDWDSRLQW
''>Q@ 'HILQHGHOLPLWHU.RQWURO
7KHYDOXHRIQZKL.K.DQEHVHWWRRUIURPWRGHWHUPLQHVWKH$6&,,YDOXH
RIWKH.KDUD.WHUVHQWE\WKHOR.NLQDPSOLILHUWRVHSDUDWHWZRQXPHUL.YDOXHVLQDWZR
YDOXHUHVSRQVHVX.KDVWKDWJHQHUDWHGE\WKH03PDJQLWXGHDQGSKDVH.RPPDQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 196/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
'()(48>QQQQQQ@ 'HILQHXVHUHTXDWLRQ
7KH'()(48.RPPDQGLVXVHGWRGHILQHWKHXVHUHTXDWLRQVZKL.KWDNHWKHIROORZLQJ
IRUP
(TXDWLRQ $ % &
'
± ×
3DUDPHWHUQLVXVHGWRVSH.LI\WKHHTXDWLRQWREHPRGLILHGDQGLVHLWKHUIRU
(TXDWLRQRUIRU(TXDWLRQ
3DUDPHWHUQLVXVHGWRVHWWKHDGGLWLRQVXEWUD.WLRQRSHUDWRULQWKHQXPHUDWRU
D..RUGLQJWRWKHIROORZLQJWDEOH
Q 2SHUDWRU
6XEWUD.WLRQ
$GGLWLRQ
7KHSDUDPHWHUVQQQDQGQVSH.LI\WKHYDULDEOHV$%&DQG'UHVSH.WLYHO\D..RUGLQJWRWKHIROORZLQJWDEOH
Q 9DULDEOH 5DQJH
;RU;
<RU<
0$*RU0$* WR
3+$RU3+$
$'&
$'&
$'&
$'&
& WR
& WR
]HUR
XQLW\
)54 WRLHUHIHUHQ.HIUHTXHQ.\LQP+]
26& WRLHRV.LOODWRUIUHTXHQ.\LQP+]
'XDOPRGHVRQO\
;
<
0$* WR
3+$
(1%:>@ (TXLYDOHQWQRLVHEDQGZLGWK
,QIL[HGSRLQWPRGHUHSRUWVWKHHTXLYDOHQWQRLVHEDQGZLGWKRIWKHRXWSXWORZSDVV
ILOWHUVDWWKH.XUUHQWWLPH.RQVWDQWVHWWLQJLQPL.URKHUW]
,QIORDWLQJSRLQWPRGHUHSRUWVWKHHTXLYDOHQWQRLVHEDQGZLGWKRIWKHRXWSXWORZSDVV
ILOWHUVDWWKH.XUUHQWWLPH.RQVWDQWVHWWLQJLQKHUW]
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 197/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
(48Q 2XWSXWUHVXOWRIHTXDWLRQRUHTXDWLRQ
7KHYDOXHUHWXUQHGLVWKHRXWSXWRIWKHXVHUHTXDWLRQQRUHTXDWLRQQ
ZKHUHWKHHTXDWLRQVDUHGHILQHGXVLQJWKH2XWSXWHTXDWLRQVPHQXVHHVH.WLRQ
7KHSRVVLEOHUDQJHLVVLJQHGELWLQWHJHU
(9(17>Q@ (YHQWPDUNHU.RQWURO
'XULQJD.XUYHD.TXLVLWLRQLIELWLQWKH&%'.RPPDQGKDVEHHQDVVHUWHGWKHOR.NLQDPSOLILHUVWRUHVWKHYDOXHRIWKH(YHQWYDULDEOHDWHD.KVDPSOHSRLQW7KLV.DQEH
XVHGDVDPDUNHULQGL.DWLQJWKHSRLQWDWZKL.KDQH[SHULPHQWDOSDUDPHWHUZDV
.KDQJHG7KH(9(17.RPPDQGLVXVHGWRVHWWKLVYDULDEOHWRDQ\YDOXHEHWZHHQDQG
(;>Q@ 2XWSXWH[SDQVLRQ.RQWURO
Q ([SDQGPRGH
2II
([SDQG;
([SDQG<
([SDQG;DQG<
)$6702'(>Q@$QDORJ2XWSXW0RGH&RQWURO
7KHYDOXHRIQVHWVWKHIDVWDQDORJRXWSXWPRGH.RQWUROD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q )XQ.WLRQ
)DVWPRGHRII
)DVWPRGHRQ
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQWKHDYDLODEOHVHWWLQJVIRUWKH
&+&+DQDORJRXWSXW.RQWUROVDUHUHVWUL.WHGDQGKHQ.HDIIH.WWKHDOORZDEOH
SDUDPHWHUUDQJHIRU&+DQG&+.RPPDQGV,WDOVRUHVWUL.WVWKHDYDLODEOHUDQJHRI RXWSXWILOWHUVORSHVHWWLQJVOLPLWVWKHIXOOV.DOHVHQVLWLYLW\WRDPD[LPXPRI9
DQGUHVWUL.WVWKHUDQJHRI$&*DLQVHWWLQJVLIWKH$&*DLQ$XWRPDWL..RQWUROLVWXUQHG
RII7KHHIIH.WLVWKDWWKHLQVWUXPHQW¶VG\QDPL.UHVHUYHLVOLPLWHGWRDPD[LPXPYDOXH
RIG%
:KHQIDVWPRGHLVWXUQHGRIIWKHRXWSXWILOWHUWLPH.RQVWDQWLVUHVWUL.WHGWRYDOXHVRI
VDQGORQJHUEXWWKHRWKHUUHVWUL.WLRQVRQRXWSXWILOWHUVORSHVHQVLWLYLW\DQG$&
JDLQDUHUHPRYHG
)/2$7>Q@ ,QSXW.RQQH.WRUVKLHOGIORDWJURXQG.RQWURO
Q 6HOH.WLRQ
*URXQG )ORDW.RQQH.WHGWRJURXQGYLDDN :UHVLVWRU
)54>@ 5HIHUHQ.HIUHTXHQ.\PHWHU
,IWKHOR.NLQDPSOLILHULVLQWKHH[WHUQDOUHIHUHQ.HVRXU.HPRGHVWKH)54.RPPDQG
.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKLIWKHUHIHUHQ.H.KDQQHOLVXQOR.NHGRU
ZLWKWKHUHIHUHQ.HLQSXWIUHTXHQ.\LILWLVOR.NHG
,IWKHOR.NLQDPSOLILHULVLQWKHLQWHUQDOUHIHUHQ.HVRXU.HPRGHLWUHVSRQGVZLWKWKH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 198/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
IUHTXHQ.\RIWKHLQWHUQDORV.LOODWRU
,QIL[HGSRLQWPRGHWKHIUHTXHQ.\LVLQP+]DQGLQIORDWLQJSRLQWPRGHWKHIUHTXHQ.\
LVLQ+]
)67$57>@>Q@ 2V.LOODWRUIUHTXHQ.\VZHHSVWDUWIUHTXHQ.\
6HWVWKHVWDUWIUHTXHQ.\IRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUIUHTXHQ.\LQWKHUDQJHWR0+]
,QIL[HGSRLQWPRGHQLVLQPLOOLKHUW]DQGLQIORDWLQJSRLQWPRGHQLVLQKHUW]
)67(3>@>QQ@ 2V.LOODWRUIUHTXHQ.\VZHHSVWHSVL]HDQGW\SH
7KHIUHTXHQ.\PD\EHVZHSWHLWKHUOLQHDUO\RUORJDULWKPL.DOO\DVVSH.LILHGE\
SDUDPHWHUQ7KHVWHSVL]HLVVSH.LILHGE\SDUDPHWHUQ
/RJVZHHSQ
,QIL[HGSRLQWPRGHQLVWKHVWHSVL]HLQWKRXVDQGWKVRIDSHU.HQW
,QIORDWLQJSRLQWPRGHQLVLQSHU.HQW7KHUDQJHRIQLVWR
/LQHDUVZHHSQ
,QIL[HGSRLQWPRGHQLVWKHVWHSVL]HLQPLOOLKHUW]
,QIORDWLQJSRLQWPRGHQLVLQKHUW]7KHUDQJHRIQLVWRN+]
/LQHDUVHHNVZHHSQ
,QIL[HGSRLQWPRGHQLVWKHVWHSVL]HLQPLOOLKHUW]
,QIORDWLQJSRLQWPRGHQLVLQKHUW]7KHUDQJHRIQLVWRN+]
7KHVHHNVZHHSPRGHDXWRPDWL.DOO\VWRSVZKHQWKHVLJQDOPDJQLWXGHH[.HHGV
RIIXOOV.DOH7KLVPRGHLVPRVW.RPPRQO\XVHGZKHQVHWWLQJXSWKHYLUWXDO
UHIHUHQ.HPRGH
)6723>@>Q@ 2V.LOODWRUIUHTXHQ.\VZHHSVWRSIUHTXHQ.\
6HWVWKHVWRSIUHTXHQ.\IRUDVXEVHTXHQWVZHHSRIWKHLQWHUQDORV.LOODWRUIUHTXHQ.\LQ
WKHUDQJHWR0+]
,QIL[HGSRLQWPRGHQLVLQPLOOLKHUW]DQGLQIORDWLQJSRLQWPRGHQLVLQKHUW]
*3>Q>Q@@ 6HW5HDG*3,%SDUDPHWHUV
QVHWVWKH*3,%DGGUHVVLQWKHUDQJHWR
Q 7HUPLQDWRU
>&5/)@WHVWH.KRGLVDEOHG
>&5/)@WHVWH.KRHQDEOHG
QRWHUPLQDWRUWHVWH.KRGLVDEOHG
QRWHUPLQDWRUWHVWH.KRHQDEOHG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 199/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
+& +DOW.XUYHD.TXLVLWLRQ
,' ,GHQWLIL.DWLRQ
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHQXPEHU
,(>Q@ 5HIHUHQ.H.KDQQHOVRXU.H.RQWURO,QWHUQDO([WHUQDO
Q 6HOH.WLRQ ,17LQWHUQDO
(;7/2*,&H[WHUQDOUHDUSDQHO77/LQSXW
(;7H[WHUQDOIURQWSDQHODQDORJLQSXW
,02'(>Q@ &XUUHQW9ROWDJHPRGHLQSXWVHOH.WRU
Q ,QSXWPRGH
&XUUHQWPRGHRIIYROWDJHPRGHLQSXWHQDEOHG
1RUPDO.XUUHQWPRGHHQDEOHG.RQQH.WVLJQDOWR%LQSXW.RQQH.WRU
/RZQRLVH.XUUHQWPRGHHQDEOHG.RQQH.WVLJQDOWR%LQSXW.RQQH.WRU
+LJKEDQGZLGWK.XUUHQWPRGHHQDEOHG.RQQH.WVLJQDOWR%LQSXW.RQQH.WRU
,IQWKHQWKHLQSXW.RQILJXUDWLRQLVGHWHUPLQHGE\WKH902'(.RPPDQG
,IQ!WKHQ.XUUHQWPRGHLVHQDEOHGLUUHVSH.WLYHRIWKH902'(VHWWLQJ
/(1>Q@ &XUYHOHQJWK.RQWURO
7KHYDOXHRIQVHWVWKH.XUYHEXIIHUOHQJWKLQHIIH.WIRUGDWDD.TXLVLWLRQ7KHPD[LPXP
DOORZHGYDOXHGHSHQGVRQWKHQXPEHURI.XUYHVUHTXHVWHGXVLQJWKH&%'.RPPDQG
DQGDSDUDPHWHUHUURUUHVXOWVLIWKHYDOXHJLYHQLVWRRODUJH)RUWKLVUHDVRQLIWKH
QXPEHURISRLQWVLVWREHLQ.UHDVHGDQGWKHQXPEHURI.XUYHVWREHVWRUHGLVWREH
UHGX.HGXVLQJWKH&%'.RPPDQGWKHQWKH&%'.RPPDQGVKRXOGEHLVVXHGILUVW
/)>QQ@ 6LJQDO.KDQQHOOLQHIUHTXHQ.\UHMH.WLRQILOWHU.RQWURO
7KH/).RPPDQGVHWVWKHPRGHDQGIUHTXHQ.\RIWKHOLQHIUHTXHQ.\UHMH.WLRQQRW.KILOWHUD..RUGLQJWRWKHIROORZLQJWDEOHV
Q 6HOH.WLRQ
2II
(QDEOHRU+]QRW.KILOWHU
(QDEOHRU+]QRW.KILOWHU
(QDEOHERWKILOWHUV
Q 1RW.K)LOWHU&HQWHU)UHTXHQ.LHV
+]DQGRU+]
+]DQGRU+]
/2& 6\VWHPOR.N.RQWURO
8SGDWHVDOOIUHTXHQ.\GHSHQGHQWJDLQDQGSKDVH.RUUH.WLRQSDUDPHWHUV
/5>@ /RJ5DWLRRXWSXW
,QLQWHJHUPRGHWKH/5.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWRîORJ;$'&
ZKHUH;LVWKHYDOXHWKDWZRXOGEHUHWXUQHGE\WKH;.RPPDQGDQG$'&LVWKHYDOXH
WKDWZRXOGEHUHWXUQHGE\WKH$'&.RPPDQG7KHUHVSRQVHUDQJHLVWR
,QIORDWLQJSRLQWPRGHWKH/5.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWR
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 200/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
ORJ;$'&7KHUHVSRQVHUDQJHLVWR
/76>Q@ 'LVSOD\RQRII.RQWURO
Q 6HOH.WLRQ
'LVSOD\RII
1RUPDORSHUDWLRQ
0 &XUYHD.TXLVLWLRQVWDWXVPRQLWRU
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKIRXUYDOXHVWKDWSURYLGHLQIRUPDWLRQ
.RQ.HUQLQJGDWDD.TXLVLWLRQDVIROORZV
)LUVWYDOXH&XUYH$.TXLVLWLRQ6WDWXV DQXPEHUZLWKILYHSRVVLEOHYDOXHVGHILQHG
E\WKHIROORZLQJWDEOH
)LUVW9DOXH 6LJQLIL.DQ.H
1R.XUYHD.WLYLW\LQSURJUHVV
$.TXLVLWLRQYLD7'.RPPDQGLQSURJUHVVDQGUXQQLQJ
$.TXLVLWLRQYLD7'&.RPPDQGLQSURJUHVVDQGUXQQLQJ
$.TXLVLWLRQYLD7'.RPPDQGLQSURJUHVVEXWKDOWHGE\+&
.RPPDQG
$.TXLVLWLRQYLD7'&.RPPDQGLQSURJUHVVEXWKDOWHGE\
+&.RPPDQG
6H.RQGYDOXH1XPEHURI6ZHHSV$.TXLUHG 7KLVQXPEHULVLQ.UHPHQWHGHD.KWLPH
D7'LV.RPSOHWHGDQGHD.KWLPHDIXOO.\.OHLV.RPSOHWHGRQD7'&D.TXLVLWLRQ,WLV
]HURHGE\WKH1&.RPPDQGDQGDOVRZKHQHYHUD&%'RU/(1.RPPDQGLVDSSOLHG
ZLWKRXWSDUDPHWHUV
7KLUGYDOXH6WDWXV%\WH7KHVDPHDVWKHUHVSRQVHWRWKH67.RPPDQG7KHQXPEHU
UHWXUQHGLVWKHGH.LPDOHTXLYDOHQWRIWKHVWDWXVE\WHDQGUHIHUVWRWKHSUHYLRXVO\DSSOLHG.RPPDQG
)RXUWKYDOXH1XPEHURI3RLQWV$.TXLUHG7KLVQXPEHULVLQ.UHPHQWHGHD.KWLPHD
SRLQWLVWDNHQ,WLV]HURHGE\WKH1&.RPPDQGDQGZKHQHYHU&%'RU/(1LVDSSOLHG
ZLWKRXWSDUDPHWHUV
0$*>@ 0DJQLWXGH
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHPDJQLWXGHYDOXH
LQWKHUDQJHWRIXOOV.DOHEHLQJ
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHPDJQLWXGH
YDOXHLQWKHUDQJH(WR(YROWVRU(WR(DPSV
03>@ 0DJQLWXGHSKDVH
(TXLYDOHQWWRWKH.RPSRXQG.RPPDQG0$*>@3+$>@
06>Q@ 6HWUHDGVHUYL.HUHTXHVWPDVNE\WH
7KHYDOXHRIQVHWVWKH654PDVNE\WHLQWKHUDQJHWR
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 201/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
?1Q $GGUHVV.RPPDQG
:KHQWKHPRGHOLVGDLV\.KDLQHGZLWKRWKHU.RPSDWLEOHLQVWUXPHQWVWKLV
.RPPDQGZLOO.KDQJHZKL.KLQVWUXPHQWLVDGGUHVVHG$OOGDLV\.KDLQHGLQVWUXPHQWV
UH.HLYH.RPPDQGVEXWRQO\WKH.XUUHQWO\DGGUHVVHGLQVWUXPHQWZLOOLPSOHPHQWRU
UHVSRQGWRWKH.RPPDQGV7KHH[.HSWLRQLVWKH?1Q.RPPDQG,IQPDW.KHVWKH
DGGUHVVVHWIURPWKHIURQWSDQHOWKHLQVWUXPHQWZLOOVZLW.KLQWRDGGUHVVHGPRGH,IQ
GRHVQRWPDW.KWKHDGGUHVVVHWIURPWKHIURQWSDQHOWKHLQVWUXPHQWZLOOVZLW.KLQWRXQDGGUHVVHGPRGH1RWHWKDWWKH?1Q.RPPDQGGRHVQRW.KDQJHWKHDGGUHVVRIDQ
LQVWUXPHQWEXWZKL.KLQVWUXPHQWLVDGGUHVVHG
127($OOLQVWUXPHQWVPXVWKDYHDXQLTXHDGGUHVV
1 5HSRUWRYHUORDGE\WH
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHRYHUORDGE\WHDQLQWHJHUEHWZHHQ
DQGZKL.KLVWKHGH.LPDOHTXLYDOHQWRIDELQDU\QXPEHUZLWKWKHIROORZLQJELW
VLJQLIL.DQ.H
%LW QRWXVHG
%LW &+RXWSXWRYHUORDG!)6%LW &+RXWSXWRYHUORDG!)6
%LW <.KDQQHORXWSXWRYHUORDG!)6
%LW ;.KDQQHORXWSXWRYHUORDG!)6
%LW QRWXVHG
%LW LQSXWRYHUORDG
%LW UHIHUHQ.HXQOR.N
1& 1HZ.XUYH
,QLWLDOL]HVWKH.XUYHVWRUDJHPHPRU\DQGVWDWXVYDULDEOHV$OOUH.RUGRISUHYLRXVO\
WDNHQ.XUYHVLVUHPRYHG
1+=
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVTXDUHURRWRIWKHQRLVHVSH.WUDO
GHQVLW\PHDVXUHGDWWKH<.KDQQHORXWSXWH[SUHVVHGLQYROW+]RUDPSV+]UHIHUUHG
WRWKHLQSXW7KLVPHDVXUHPHQWDVVXPHVWKDWWKH<.KDQQHORXWSXWLV*DXVVLDQZLWK
]HURPHDQ6H.WLRQ7KH.RPPDQGLVRQO\DYDLODEOHLQIORDWLQJSRLQWPRGH
11>@ 1RLVHRXWSXW
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHPHDQDEVROXWH
YDOXHRIWKH<.KDQQHORXWSXWLQWKHUDQJHWRIXOOV.DOHEHLQJ,IWKH
PHDQYDOXHRIWKH<.KDQQHORXWSXWLV]HURWKLVLVDPHDVXUHRIWKHRXWSXWQRLVH
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGLQYROWV
11%8)>Q@ 1RLVH%XIIHU/HQJWK.RQWURO
7KHYDOXHRIQVHWVWKHQRLVHEXIIHUOHQJWKD..RUGLQJWRWKHIROORZLQJWDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 202/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
Q )XQ.WLRQ
1RLVHEXIIHURII
VH.RQGQRLVHEXIIHU
VH.RQGQRLVHEXIIHU
VH.RQGQRLVHEXIIHU
VH.RQGQRLVHEXIIHU
12,6(02'(>Q@ 1RLVH0HDVXUHPHQW0RGH.RQWURO
7KHYDOXHRIQVHWVWKHQRLVHPHDVXUHPHQWPRGHD..RUGLQJWRWKHIROORZLQJWDEOH
Q )XQ.WLRQ
1RLVHPHDVXUHPHQWPRGHRII
1RLVHPHDVXUHPHQWPRGHRQ
:KHQWKHQRLVHPHDVXUHPHQWPRGHLVWXUQHGRQWKHRXWSXWILOWHUWLPH.RQVWDQWLV
DXWRPDWL.DOO\DGMXVWHGXQWLOLWOLHVLQWKHUDQJHVWRPVLQ.OXVLYHWKH
V\Q.KURQRXVWLPH.RQVWDQW.RQWUROLVWXUQHGRIIDQGWKHRXWSXWILOWHUVORSHLVVHWWR
G%R.WDYHLILWKDGSUHYLRXVO\EHHQRUG%R.WDYH
2$>@>Q@ 2V.LOODWRUDPSOLWXGH.RQWURO
,QIL[HGSRLQWPRGHQVHWVWKHRV.LOODWRUDPSOLWXGHLQP97KHUDQJHRIQLVWR
UHSUHVHQWLQJWR9UPV
,QIORDWLQJSRLQWPRGHQVHWVWKHDPSOLWXGHLQYROWV
2)>@>Q@ 2V.LOODWRUIUHTXHQ.\.RQWURO
,QIL[HGSRLQWPRGHQVHWVWKHRV.LOODWRUIUHTXHQ.\LQP+]7KHUDQJHRIQLVWR
UHSUHVHQWLQJWR0+]
,QIORDWLQJSRLQWPRGHQVHWVWKHRV.LOODWRUIUHTXHQ.\LQ+]7KHUDQJHRIQLVWR(
3+$>@ 6LJQDOSKDVH
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVLJQDOSKDVHLQ
.HQWLGHJUHHVLQWKHUDQJH
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVLJQDOSKDVHLQ
GHJUHHV
3257',5>Q@ 'LJLWDOSRUWGLUH.WLRQ.RQWURO
7KHYDOXHRIQGHWHUPLQHVZKL.KRIWKHHLJKWOLQHVRQWKHGLJLWDOSRUWDUH.RQILJXUHGDV
LQSXWVDQGZKL.KDVRXWSXWVD..RUGLQJWRWKHIROORZLQJWDEOH
Q VWDWXV
$OOOLQHV.RQILJXUHGDVLQSXWV
'RXWSXW''LQSXWV
'DQG'RXWSXWV''LQSXWV
''RXWSXWV''LQSXWV
''RXWSXWV''LQSXWV
''RXWSXWV''LQSXWV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 203/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
Q VWDWXV
''RXWSXWV'DQG'LQSXWV
''RXWSXWV'LQSXW
$OOOLQHV.RQILJXUHGDVRXWSXWV
5($'%<7( 5HDGGLJLWDOSRUWLQSXW
7KHUHVSRQVHWRWKH5($'%<7(.RPPDQGLVDQLQWHJHUEHWZHHQDQGUHSUHVHQWLQJWKHELQDU\YDOXHRIDOOHLJKWOLQHVRIWKHUHDUSDQHOGLJLWDOSRUW+HQ.HIRU
H[DPSOHLI3257',5DQGWKHUHVSRQVHWR5($'%<7(LVWKHQDOOOLQHVDUH
KLJKDQGLIWKHUHVSRQVHWR5($'%<7(LVWKHQDOOOLQHVDUHORZ1RWHWKDWEH.DXVH
WKH.RPPDQGGRHVQRWGLIIHUHQWLDWHEHWZHHQZKHWKHUDOLQHLV.RQILJXUHGDVDQLQSXWRU
RXWSXWLW.DQEHXVHGDVDVLQJOH.RPPDQGWRGHWHUPLQHWKHSUHVHQWVWDWXVRIDOOHLJKW
OLQHVERWKLQSXWVDQGRXWSXWVRIWKHSRUW
5()02'(>Q@ 5HIHUHQ.HPRGHVHOH.WRU
Q 0RGH
6LQJOH5HIHUHQ.H9LUWXDO5HIHUHQ.HPRGH
'XDO+DUPRQL.PRGH
'XDO5HIHUHQ.HPRGH
127(:KHQLQHLWKHURIWKHGXDOUHIHUHQ.HPRGHVWKH.RPPDQGVHW.KDQJHVWR
D..RPPRGDWHWKHDGGLWLRQDO.RQWUROV7KHVH.KDQJHVDUHGHWDLOHGLQVH.WLRQ
5()1>Q@ 5HIHUHQ.HKDUPRQL.PRGH.RQWURO
7KHYDOXHRIQVHWVWKHUHIHUHQ.H.KDQQHOWRRQHRIWKH1)PRGHVRUUHVWRUHVLWWRWKH
GHIDXOW)PRGH7KHYDOXHRIQLVLQWKHUDQJHWR
5()3>@>Q@ 5HIHUHQ.HSKDVH.RQWURO
,QIL[HGSRLQWPRGHQVHWVWKHSKDVHLQPLOOLGHJUHHVLQWKHUDQJH
,QIORDWLQJSRLQWPRGHQVHWVWKHSKDVHLQGHJUHHV
5(027(>Q@ 5HPRWHRQO\IURQWSDQHOOR.NRXW.RQWURO
$OORZHGYDOXHVRIQDUHDQG:KHQQLVHTXDOWRWKHOR.NLQDPSOLILHUHQWHUV
UHPRWHRQO\PRGHLQZKL.KWKHIURQWSDQHO.RQWUROIXQ.WLRQVDUHLQRSHUDWLYHDQGWKH
LQVWUXPHQW.DQRQO\EH.RQWUROOHGZLWKWKH56RUWKH*3,%LQWHUID.HV:KHQQLV
HTXDOWRWKHIURQWSDQHO.RQWUROVIXQ.WLRQQRUPDOO\
56>Q>Q@@ 6HWUHDG56LQWHUID.HSDUDPHWHUV
Q %DXGUDWHELWVSHUVH.RQG
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 204/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
Q %DXGUDWHELWVSHUVH.RQG
7KHORZHVWILYHELWVLQQ.RQWUROWKHRWKHU56SDUDPHWHUVD..RUGLQJWRWKH
IROORZLQJWDEOH
ELWQXPEHU ELWQHJDWHG ELWDVVHUWHG
GDWDSDULW\ELWV GDWDSDULW\ELWV
QRSDULW\ELW SDULW\ELW
HYHQSDULW\ RGGSDULW\
H.KRGLVDEOHG H.KRHQDEOHG
SURPSWGLVDEOHG SURPSWHQDEOHG
57>@ 5DWLRRXWSXW
,QLQWHJHUPRGHWKH57.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWRî;$'&
ZKHUH;LVWKHYDOXHWKDWZRXOGEHUHWXUQHGE\WKH;.RPPDQGDQG$'&LVWKHYDOXH
WKDWZRXOGEHUHWXUQHGE\WKH$'&.RPPDQG
,QIORDWLQJSRLQWPRGHWKH57.RPPDQGUHSRUWVDQXPEHUHTXLYDOHQWWR;$'&
6(1>Q@
6(1 )XOOV.DOHVHQVLWLYLW\.RQWURO
7KHYDOXHRIQVHWVWKHIXOOV.DOHVHQVLWLYLW\D..RUGLQJWRWKHIROORZLQJWDEOHGHSHQGLQJ
RQWKHVHWWLQJRIWKH,02'(.RQWURO
Q IXOOV.DOHVHQVLWLYLW\
,02'( ,02'( ,02'( ,02'(
Q9 I$ QD S$ Q9 I$ QD S$
Q9 I$ QD S$
Q9 I$ QD S$
Q9 I$ QD S$
Q9 I$ QD S$
9 S$ I$ S$
9 S$ I$ S$
9 S$ I$ S$
9 S$ I$ Q$
9 S$ I$ Q$
9 S$ I$ Q$
9 S$ S$ Q$ 9 S$ S$ Q$
9 S$ S$ Q$
P9 Q$ S$ Q$
P9 Q$ S$ Q$
P9 Q$ S$ Q$
P9 Q$ S$ $
P9 Q$ S$ $
P9 Q$ S$ $
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 205/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
Q IXOOV.DOHVHQVLWLYLW\
,02'( ,02'( ,02'( ,02'(
P9 Q$ Q$ $
P9 Q$ Q$ $
P9 Q$ Q$ $
9 $ Q$ $
6/23(>Q@ 2XWSXWORZSDVVILOWHUVORSHUROORII.RQWURO
:KHQWKHIDVWDQDORJRXWSXWPRGHDQG1RLVH0HDVXUHPHQWPRGHDUHWXUQHGRII
)$6702'(DQG12,6(02'(WKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q 6ORSH
G%R.WDYH
G%R.WDYH
G%R.WDYH 7&tV
G%R.WDYH 7&tV
:KHQ
D 7KHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQVLQJOHRUYLUWXDOUHIHUHQ.HPRGHRU
E 1RLVHPHDVXUHPHQWPRGHLVWXUQHG2112,6(02'(
WKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJWDEOH
Q 6ORSH
G%R.WDYH G%R.WDYH
:KHQWKHIDVWDQDORJRXWSXWPRGHLVWXUQHGRQ)$6702'(DQGWKHLQVWUXPHQWLV
LQGXDOKDUPRQL.RUGXDOUHIHUHQ.HPRGHWKHVHOH.WLRQLVD..RUGLQJWRWKHIROORZLQJ
WDEOH
Q 6ORSH
G%R.WDYH
65$7(>@>Q@ 2V.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSVWHSUDWH
6HWVWKHVZHHSUDWHLQWLPHSHUVWHSLQWKHUDQJHPVWRVLQPVLQ.UHPHQWV
67 5HSRUWVWDWXVE\WH
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHVWDWXVE\WHDQLQWHJHUEHWZHHQDQG
ZKL.KLVWKHGH.LPDOHTXLYDOHQWRIDELQDU\QXPEHUZLWKWKHIROORZLQJELW
VLJQLIL.DQ.H
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 206/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
%LW &RPPDQG.RPSOHWH
%LW ,QYDOLG.RPPDQG
%LW &RPPDQGSDUDPHWHUHUURU
%LW 5HIHUHQ.HXQOR.N
%LW 2YHUORDG
%LW 1HZ$'&YDOXHVDYDLODEOHDIWHUH[WHUQDOWULJJHU
%LW $VVHUWHG654%LW 'DWDDYDLODEOH
127(WKLV.RPPDQGLVQRWQRUPDOO\XVHGLQ*3,%.RPPXQL.DWLRQVZKHUHWKH
VWDWXVE\WHLVD..HVVHGE\SHUIRUPLQJDVHULDOSROO
" )DVW'DWD7UDQVIHU.RPPDQG
7KH".RPPDQGRIIHUVDPHWKRGRIUHDGLQJD.RPELQDWLRQRILQVWUXPHQWRXWSXWVZKL.K
DUHVDPSOHGDWWKHVDPHWLPHWKHUHE\HQVXULQJWKDWWKH\DUH.RUUHODWHG
7KHUHVSRQVHWRWKH".RPPDQGLVWKHRXWSXWVH[SUHVVHGLQIORDWLQJSRLQWPRGH
VSH.LILHGE\WKHSUHVHQWVHWWLQJRIWKH&XUYH%XIIHU'HILQH&%'.RPPDQGVHH
VH.WLRQDQGVHSDUDWHGE\GHOLPLWHU.KDUD.WHUVGHILQHGE\WKH''.RPPDQG+HQ.HIRUH[DPSOHLI&%'LVVHWWRWKHUHVSRQVHWRWKH".RPPDQGZLOOEH
;RXWSXWLQIORDWLQJSRLQWPRGH!GHOLPLWHU!
<RXWSXWLQIORDWLQJSRLQWPRGH!WHUPLQDWRU!
675>Q@ 6WRUDJHLQWHUYDO.RQWURO
6HWVWKHWLPHLQWHUYDOEHWZHHQVX..HVVLYHSRLQWVEHLQJD.TXLUHGXQGHUWKH7'RU7'&
.RPPDQGVQVSH.LILHVWKHWLPHLQWHUYDOLQPVZLWKDUHVROXWLRQRIPVLQSXWYDOXHV
EHLQJURXQGHGXSWRDPXOWLSOHRI7KHORQJHVWLQWHUYDOWKDW.DQEHVSH.LILHGLV
V.RUUHVSRQGLQJWRRQHSRLQWLQDERXWGD\V
6:((3>Q@ 2V.LOODWRUIUHTXHQ.\DQGDPSOLWXGHVZHHSVWDUWVWRS
Q 6ZHHSVWDWXV
6WRS3DXVH
6WDUWIUHTXHQ.\VZHHS
6WDUWDPSOLWXGHVZHHS
6WDUWIUHTXHQ.\VZHHSDQGDPSOLWXGHVZHHS
6<1&>Q@ 6\Q.KURQRXVWLPH.RQVWDQW.RQWURO
Q (IIH.W
6\Q.KURQRXVWLPH.RQVWDQWGLVDEOHG
6\Q.KURQRXVWLPH.RQVWDQWHQDEOHG
7$'&>Q@ $X[LOLDU\$'&WULJJHUPRGH.RQWURO
7KHYDOXHRIQVHWVWKHWULJJHUPRGHRIWZRRIWKHDX[LOLDU\$'&LQSXWVD..RUGLQJWR
WKHIROORZLQJWDEOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 207/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
Q 7ULJJHUPRGH
$V\Q.KURQRXVPVLQWHUYDOV
([WHUQDO$'&DQG$'&UHDUSDQHO75,*LQSXW
%XUVWPRGHVSRLQWWULJJHUHGE\.RPPDQG$'&RQO\
%XUVWPRGHVSRLQWWULJJHUHGE\.RPPDQG$'&DQG$'&
%XUVWPRGHYDULDEOHUDWHWULJJHUHGE\.RPPDQG$'&RQO\
%XUVWPRGHYDULDEOHUDWHWULJJHUHGE\.RPPDQG$'&DQG$'& %XUVWPRGHVSRLQW([WHUQDOWULJJHUZLWKPVWULJJHULQGHWHUPLQD.\
UHDUSDQHO75,*LQSXW$'&RQO\
%XUVWPRGHVSRLQW([WHUQDOWULJJHUPVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUPVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&RQO\
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUPVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
%XUVWPRGHVSRLQW([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&RQO\
%XUVWPRGHVSRLQW([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&RQO\
%XUVWPRGHYDULDEOHUDWH([WHUQDOWULJJHUZLWKVWULJJHULQGHWHUPLQD.\UHDU
SDQHO75,*LQSXW$'&DQG$'&
,QWKHEXUVWPRGHVGDWDLVVWRUHGLQWKH.XUYHEXIIHU8VHWKH/(1.RPPDQGWRVHWWKH
QXPEHURISRLQWVUHTXLUHG1RWHWKDWLWPD\EHQH.HVVDU\WRHQWHU&%'EHIRUH
VHWWLQJWKHOHQJWKLIWKH.XUYHEXIIHUKDVSUHYLRXVO\EHHQXVHGIRUPRUHWKDQRQHGDWD
W\SH7KHGDWDLVUHDGRXWIURPWKHEXIIHUXVLQJ'&>@IRU$'&DQG'&>@IRU
$'&,IWKHOHQJWKLVVHWWRPRUHWKDQDQGDEXUVWPRGHZKL.KVWRUHVERWK
$'&DQG$'&LVVSH.LILHGWKHQWKH.XUYHOHQJWKZLOODXWRPDWL.DOO\EHUHGX.HGWRSRLQWV1RWHDOVRWKDWVHWWLQJWKH7$'&SDUDPHWHUWRDQ\YDOXHRWKHUWKDQRU
DIIH.WVWKH&%'SDUDPHWHUDVIROORZV
7$'&SDUDPHWHU (IIH.WRQ&%'SDUDPHWHU
QRQH
QRQH
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
DXWRPDWL.DOO\VHWWR
7KHPD[LPXPVDPSOLQJUDWHGHSHQGVRQWKHQXPEHURI$'&LQSXWVXVHGDQGLVHLWKHU
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 208/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
VZKHQVDPSOLQJ$'&RQO\RUVZKHQVDPSOLQJERWK$'&DQG$'&
,QWKH9DULDEOH5DWHPRGHVWKHVDPSOLQJVSHHGLVVHWE\WKH%8567733EXUVWWLPH
SHUSRLQW.RPPDQG
127(7$'&PRGHVWR.DXVHDOORWKHUIXQ.WLRQVRIWKHKRVWPL.URSUR.HVVRU
WREHVXVSHQGHGLQ.OXGLQJUHVSRQGLQJWR.RPSXWHU.RPPDQGVXQWLODWULJJHULV
UH.HLYHGDWWKH75,*LQSXW+HQ.HWKH\VKRXOGRQO\EHXVHGZKHQWKHXVHULV.HUWDLQWKDWVX.KDWULJJHUZLOOR..XU
7&>Q@
7& )LOWHUWLPH.RQVWDQW.RQWURO
7KHYDOXHRIQVHWVWKHRXWSXWILOWHUWLPH.RQVWDQWLQD..RUGDQ.HZLWKWKHIROORZLQJ
WDEOH)$6702'(
12,6(02'(
)$6702'(
12,6(02'(
)$6702'(
12,6(02'(
)$6702'(
12,6(02'(
Q WLPH.RQVWDQW WLPH.RQVWDQW WLPH.RQVWDQW WLPH.RQVWDQW
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$ 1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
1$ V 1$ 1$
V V V V
PV PV PV PV
PV PV PV PV
PV PV PV PV
PV PV PV PV
PV PV 1$ 1$
PV PV 1$ 1$
PV PV 1$ 1$
PV PV 1$ 1$
PV PV 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$
V V 1$ 1$ V V 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
NV NV 1$ 1$
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 209/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
1$PHDQVWKDWQLVDQLOOHJDOYDOXHXQGHUWKHVH.RQGLWLRQV
7KH7&.RPPDQGLVRQO\XVHGIRUUHDGLQJWKHWLPH.RQVWDQWDQGUHSRUWVWKH.XUUHQW
VHWWLQJLQVH.RQGV+HQ.HLID7&.RPPDQGZHUHVHQWDQGWKHQRLVHPHDVXUHPHQW
PRGHZDVWXUQHGRII7&ZRXOGUHSRUWDQG7&ZRXOGUHSRUW(LHVRU
PV
7' 7DNHGDWD
,QLWLDWHVGDWDD.TXLVLWLRQ$.TXLVLWLRQVWDUWVDWWKH.XUUHQWSRVLWLRQLQWKH.XUYHEXIIHU
DQG.RQWLQXHVDWWKHUDWHVHWE\WKH675.RPPDQGXQWLOWKHEXIIHULVIXOO
7'& 7DNHGDWD.RQWLQXRXVO\
7'7Q 7DNHGDWDWULJJHUHG
Q IXQ.WLRQ
2QH.RPSOHWH.XUYHRUVHWRI.XUYHVHD.KRQH.RQVLVWLQJRIWKHQXPEHURISRLQWV
VSH.LILHGE\WKH/(1.RPPDQGSDUDPHWHULVD.TXLUHGIRUHD.KWULJJHU
2QHGDWDSRLQWRUVHWRIGDWDSRLQWVLVD.TXLUHGIRUHD.KWULJJHU+HQ.HLQRUGHUWR
VWRUHD.RPSOHWH.XUYHRUVHWRI.XUYHVWKHQXPEHURIWULJJHUVDSSOLHGPXVWHTXDO
WKHQXPEHURISRLQWVVSH.LILHGE\WKH/(1.RPPDQGSDUDPHWHU1RWHWKDWLQWKLV
PRGHWKHPD[LPXPWULJJHUUDWHLV+]DQGWKHVWRUDJHLQWHUYDO.RQWUROVHWWLQJ
KDVQRHIIH.W
9(5 5HSRUWILUPZDUHYHUVLRQ
&DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKHILUPZDUHYHUVLRQQXPEHU7KH
ILUPZDUHYHUVLRQQXPEHULVWKHQXPEHUGLVSOD\HGRQWKH&RQILJXUDWLRQPHQX
902'(>Q@ 9ROWDJHLQSXW.RQILJXUDWLRQ
Q ,QSXW.RQILJXUDWLRQ
%RWKLQSXWVJURXQGHGWHVWPRGH $LQSXWRQO\
%LQSXWRQO\
$%GLIIHUHQWLDOPRGH
1RWHWKDWWKH,02'(.RPPDQGWDNHVSUH.HGHQ.HRYHUWKH902'(.RPPDQG
95/2&>Q@ 9LUWXDOUHIHUHQ.HPRGHOR.N
7KH6HHNRSWLRQRIWKHIUHTXHQ.\VZHHSPRGHPXVWEHXVHGEHIRUHLVVXLQJWKLV
.RPPDQGIRUZKL.KWKHYDOXHRIQKDVWKHIROORZLQJVLJQLIL.DQ.H
Q 0RGH
'LVDEOHVYLUWXDOUHIHUHQ.HPRGH (QWHUVYLUWXDOUHIHUHQ.HPRGHE\HQDEOLQJWUD.NLQJRIWKHVLJQDOIUHTXHQ.\
;>@ ;.KDQQHORXWSXW
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH;GHPRGXODWRU
RXWSXWLQWKHUDQJHIXOOV.DOHEHLQJ
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH;GHPRGXODWRU
RXWSXWLQYROWVRUDPSV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 210/217
$SSHQGL[)$/3+$%(7,&$//,67,1*2)&200$1'6
)
;2)>Q>Q@@ ;.KDQQHORXWSXWRIIVHW.RQWURO
Q 6HOH.WLRQ
'LVDEOHVRIIVHW
(QDEOHVRIIVHWID.LOLW\
7KHUDQJHRIQLV.RUUHVSRQGLQJWRIXOOV.DOH
;<>@ ;<.KDQQHORXWSXWV
(TXLYDOHQWWRWKH.RPSRXQG.RPPDQG;>@<>@
<>@ <.KDQQHORXWSXW
,QIL[HGSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH<GHPRGXODWRU
RXWSXWLQWKHUDQJHIXOOV.DOHEHLQJ
,QIORDWLQJSRLQWPRGH.DXVHVWKHOR.NLQDPSOLILHUWRUHVSRQGZLWKWKH<GHPRGXODWRU
RXWSXWLQYROWVRUDPSV
<2)>Q>Q@@ <.KDQQHORXWSXWRIIVHW.RQWURO
Q 6HOH.WLRQ
'LVDEOHVRIIVHWID.LOLW\
(QDEOHVRIIVHWID.LOLW\
7KHUDQJHRIQLV.RUUHVSRQGLQJWRIXOOV.DOH
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 211/217
,QGH[,QGH[
,1'(;
".RPPDQG)
?1Q.RPPDQG)
ELWSURJUDPPDEOHRXWSXWSRUW$&*DLQ
DQG$XWR0HDVXUH
DQG$XWR6HQVLWLYLW\
DQGG\QDPL.UHVHUYH
DQGHIIH.WRQD..XUD.\
DQGIXOOV.DOHVHQVLWLYLW\
DQGLQSXWRYHUORDG
$8720$7,&.RQWURO
.RQWURO
GHV.ULSWLRQRI
$..XUD.\
$&*$,1>[email protected])$'&
VDPSOLQJIUHTXHQ.\
WULJJHULQSXW
$'&>@Q.RPPDQG)
$'&
DX[LOLDU\LQSXW
.RQQH.WRU
$'&
DX[LOLDU\LQSXW
.RQQH.WRU
$')Q.RPPDQG($QDORJ2XWSXWV0HQX
'XDO5HIHUHQ.HDQG'XDO+DUPRQL.0RGHV
6LQJOH9LUWXDO5HIHUHQ.H0RGHV
$QDORJWRGLJLWDO.RQYHUWHU$'&
$QWLDOLDVLQJILOWHU
$41.RPPDQG)
$6.RPPDQG)
$60.RPPDQG)
$67$57>@>[email protected])
$67(3>@>[email protected])
$6723>@>[email protected])
$XWRIXQ.WLRQV$XWR'HIDXOW
$XWR0HDVXUH
$XWR2IIVHW
$XWR3KDVH
$XWR6HQVLWLYLW\
LQWURGX.WLRQ
$8720$7,&>[email protected])
$8;'$&.RQWURO
$8;'$&.RQWURO
$X[LOLDU\$'&V
$X[LOLDU\,20HQX$;2.RPPDQG)
%XUVWPRGH.RQWURO
%8567733>[email protected]
%<7(>[email protected])
&%'>[email protected])
&+Q>[email protected])
&+
DQGXVHUHTXDWLRQV
.RQQH.WRU
GHV.ULEHG
PLQLPXPWLPH.RQVWDQW
RXWSXWH[SDQVLRQ&+
DQGXVHUHTXDWLRQV
.RQQH.WRU
GHV.ULEHG
PLQLPXPWLPH.RQVWDQW
RXWSXWH[SDQVLRQ
&RPPDQGV
DOSKDEHWL.DOOLVWLQJRI)
.RPSRXQG.RPPDQGV
GHOLPLWHUV
IORDWLQJSRLQWPRGHIRU$XWR'HIDXOWIXQ.WLRQ
IRUDX[LOLDU\LQSXWV
IRUDX[LOLDU\RXWSXWV
IRU.RPSXWHULQWHUID.HV
IRUGDWD.XUYHEXIIHU
IRUGXDOKDUPRQL.PRGH
IRUGXDOUHIHUHQ.HPRGH
IRUIURQWSDQHO.RQWURO
IRULQVWUXPHQWLGHQWLIL.DWLRQ
IRULQVWUXPHQWRXWSXWV
IRULQWHUQDORV.LOODWRU
IRUUHIHUHQ.H.KDQQHOIRUVLJQDO.KDQQHOLQSXWV
IRUVLJQDO.KDQQHORXWSXWDPSOLILHUV
IRUVLJQDO.KDQQHORXWSXWILOWHUV
IRUPDW
&RPPRQPRGHUHMH.WLRQUDWLR&055
&RPPXQL.DWLRQV0HQX
&RPPXQL.DWLRQV0RQLWRU0HQX
&RPSXWHU.RQWUROVDPSOHSURJUDPV
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 212/217
,1'(;
,1'(;
&RPSXWHURSHUDWLRQLQWURGX.WLRQ
&RQWURO6HOH.WLRQ0HQX
&XUUHQW9ROWDJHLQSXWPRGHVHOH.WLRQ
&XUYH%XIIHU0HQX
&XUYH6HOH.W0HQX
&XUYHVWRUDJHDGGLWLRQDO.XUYHVZLWKGXDOPRGHV
.RPPDQGVIRU
&XUYH%XIIHU0HQX
GDWDD.TXLVLWLRQ.RQWUROV
OHQJWK.RQWURO
QXPEHURIVZHHSV.RQWURO
SURJUDPPLQJH[DPSOHV
WLPHSHUSRLQW.RQWURO
WULJJHULQSXW
'$&>@Q>[email protected])
'$&
DX[LOLDU\RXWSXW
.RQQH.WRU
.RQWURO
'$&
DX[LOLDU\RXWSXW
.RQQH.WRU
.RQWURO
'$&
DX[LOLDU\RXWSXW
.RQQH.WRU
.RQWURO
'$&DX[LOLDU\RXWSXW
.RQQH.WRU
.RQWURO
'&>@Q.RPPDQG)
'&%Q.RPPDQG)
'&7Q.RPPDQG)
'()(48>[email protected])
'HOLPLWHUV
'HPRGXODWRU
'63
JDLQ'LIIHUHQWLDOYROWDJHLQSXWPRGH
',*,7$/2873876.RQQH.WRU
'LJLWDO3RUW0HQX
',63H\
'RXEOH*UDSK0HQX
'XDOKDUPRQL.PRGH
$XWR)XQ.WLRQV0HQX
&RQILJXUDWLRQ0HQX
GHV.ULEHG
0DLQ'LVSOD\
PD[LPXPIUHTXHQ.\
PHQXGHV.ULSWLRQV
PLQLPXPWLPH.RQVWDQWV
RXWSXWGLVSOD\.KRL.HV
2XWSXW)LOWHUV0HQX2XWSXW2IIVHW+DUP0HQX
2XWSXW2IIVHW+DUP0HQX
5HIHUHQ.H&KDQQHO0HQX
6HWXS0HQX
VLJQDO.KDQQHOUHVWUL.WLRQV
'XDOUHIHUHQ.HPRGH
$XWR)XQ.WLRQV0HQX
&RQILJXUDWLRQ0HQX
GHV.ULEHG
0DLQ'LVSOD\
PHQXGHV.ULSWLRQV
PLQLPXPWLPH.RQVWDQWV
2XWSXW)LOWHUV0HQX
2XWSXW2IIVHW5HI0HQX
2XWSXW2IIVHW5HI0HQX
5HIHUHQ.H&KDQQHO0HQX
6HWXS0HQX
VLJQDO.KDQQHOUHVWUL.WLRQV
(1%:>@.RPPDQG)
(48Q.RPPDQG)
(9(17>[email protected])
)$67;RXWSXW
RXWSXWILOWHUVORSH
)$67<0$*
RXWSXW
RXWSXWILOWHUVORSH
)(7LQSXWGHYL.H
)/2$7>[email protected])
)URQW3DQHO
OD\RXW
2SHUDWLRQ
)URQWSDQHONH\V
D.WLYH.XUVRUDXWRUHSHDW
H[H.XWLQJSUHSURJUDPPHGIXQ.WLRQV
SRSXSNH\SDG
VHOH.WLQJPHQXV
)54>@.RPPDQG)
)67$57>@>[email protected])
)67(3>@>[email protected])
)6723>@>[email protected])
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 213/217
,1'(;
,1'(;
)XVHV
OLQH
UDWLQJV
*3>Q>Q@@.RPPDQG)
*3,%LQWHUID.H
DGGUHVVVHOH.WLRQ
&RPPXQL.DWLRQV0RQLWRU.RQQH.WRU
JHQHUDOIHDWXUHV
KDQGVKDNLQJDQGH.KRHV
VHUYL.HUHTXHVWPDVNE\WH.RQWURO
VHUYL.HUHTXHVWV
VWDWXVE\WH
WHUPLQDWRUVHOH.WLRQ
WHUPLQDWRUV
WHVWH.KR.RQWURO
*3,%6HWWLQJV0HQX
*UDSKL.DOGLVSOD\
DGMXVWLQJ<D[LVV.DOH
$XWR6.DOH
.XUVRUNH\V
.XUYHVHOH.WLRQNH\V
GDWDD.TXLVLWLRQ.RQWURONH\V
'RXEOH*UDSK0HQX
OLPLWDWLRQVZLWKGXDOPRGHV
V.DOHNH\V
6LQJOH*UDSK0HQX
+&.RPPDQG)
+(/3H\
,'.RPPDQG),(>[email protected])
,02'(>[email protected])
,QLWLDO.KH.NV
,QSXW
.RQQH.WRU.RQWURO
.RQQH.WRUVHOH.WLRQ
.RQQH.WRUVKHOOIDVWVORZ
.RQQH.WRUVKHOOJURXQGIORDW
.RXSOLQJ
.XUUHQWYROWDJHPRGH.RQWURO
.XUUHQWYROWDJHPRGHVHOH.WLRQ
OLQHILOWHU.RQWURORYHUORDGLQGL.DWRUV
,QVSH.WLRQ
H\VSH.LIL.DWLRQV
H\SDGGDWDHQWU\
/(1>[email protected])
/LQH.RUG
/LQHIUHTXHQ.\UHMH.WLRQILOWHU
VHWWLQJILOWHUIUHTXHQ.\
VHWWLQJOLQHIUHTXHQ.\
/LQHSRZHULQSXWDVVHPEO\
/LQHSRZHUVZLW.K
/LQHYROWDJHVHOH.WLRQ
/2&.RPPDQG)
/RJ5DWLRRXWSXW/5>@.RPPDQG)
/76>[email protected])
0.RPPDQG)
0$*>@.RPPDQG)
0DLQ0HQX
0DLQ0HQX
0DLQ0HQXVWUX.WXUH
0(18H\
0HQXVWUX.WXUH
03>@.RPPDQG)
1.RPPDQG)
1&.RPPDQG)
1+=.RPPDQG)
11>@.RPPDQG)
11%8)>[email protected])
1RLVH%XIIHU/HQJWK.RQWURO
1RLVH0HDVXUHPHQW0RGH
1RLVHPHDVXUHPHQWV
12,6(02'(>[email protected])
2$>@>[email protected])
2)>@>[email protected])
2SHUDWLQJHQYLURQPHQW2SHUDWLQJ0RGHV
2SWLRQV0HQX
26&287.RQQH.WRU
2V.LOODWRU
DPSOLWXGH.RQWURO
$PSOLWXGH6ZHHS0HQX
IUHTXHQ.\.RQWURO
)UHTXHQ.\6ZHHS0HQX
IUHTXHQ.\VZHHSVJHQHUDO
2V.LOODWRU0HQX
RXWSXWDPSOLWXGHVZHHSVJHQHUDO
RXWSXWXSGDWHUDWHRYHUYLHZ
VWDUWIUHTXHQ.\.RQWURO
VWRSIUHTXHQ.\.RQWURO
2XWSXW
H[SDQG.RQWURO
ILOWHUVORSH.RQWURO
RIIVHW
RIIVHWVWDWXV.RQWURO
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 214/217
,1'(;
,1'(;
RXWSXWH[SDQVLRQ
RXWSXWILOWHUV
RXWSXWRIIVHW
V\Q.KURQRXVRXWSXWILOWHUV
WLPH.RQVWDQW.RQWURO
WLPH.RQVWDQWPRGH
;.KDQQHORIIVHW.RQWURO;.KDQQHORIIVHW.RQWURO
<.KDQQHORIIVHW.RQWURO
2YHUORDG
LQSXWRYHUORDGLQGL.DWRU
RXWSXWRYHUORDGLQGL.DWRU
3+$>@.RPPDQG)
3257',5>[email protected])
35($0332:(5.RQQH.WRU
5D.NPRXQWLQJ
5DWLRRXWSXW
5($'%<7(.RPPDQG)
5HDUSDQHOOD\RXW
5(),1.RQQH.WRU
5()021.RQQH.WRU
5()77/.RQQH.WRU
5HIHUHQ.H.KDQQHO'63
5HIHUHQ.HKDUPRQL..RQWURO
5HIHUHQ.H/R.NLQGL.DWRU
5HIHUHQ.HPRGH
([WHUQDO
,QWHUQDO
5HIHUHQ.HSKDVH.RQWURO
5HIHUHQ.HSKDVHTXDGUDQW.RQWURO
5HIHUHQ.HSKDVHVKLIWHU
5HIHUHQ.HVRXU.H.RQWURO
5()02'(>[email protected])
5()1>[email protected])
5()3>@>[email protected])
5(027(>[email protected])
5HPRWHLQGL.DWRU
56>Q>Q@@.RPPDQG)
56DQG*3,%2SHUDWLRQ
56LQWHUID.HDGGUHVV.RQWURO
$8;56.RQQH.WRU
DX[LOLDU\56LQWHUID.HGHV.ULEHG
DX[LOLDU\56LQWHUID.HDGGUHVV
EDXGUDWH.RQWURO
.KDUD.WHUH.KR.RQWURO
.KRL.HRIEDXGUDWH
.KRL.HRIQXPEHURIGDWDELWV
.KRL.HRISDULW\.KH.NRSWLRQ
&RPPXQL.DWLRQV0RQLWRU
.RQQH.WRU
JHQHUDOIHDWXUHV
KDQGVKDNLQJDQGH.KRHV
1RYHUORDG.RPPDQG
QXPEHURIGDWDELWV.RQWURO SDULW\.RQWURO
SURPSW.KDUD.WHU.RQWURO
SURPSWV
67VWDWXV.RPPDQG
WHUPLQDWRUV
566HWWLQJV0HQX
57>@.RPPDQG)
6(1>[email protected])
6(1.RPPDQG)
6HQVLWLYLW\.RQWURO
6,*021.RQQH.WRU
6LJQDO.KDQQHOLQSXWV
6LJQDO&KDQQHO0HQX
.XUUHQWLQSXWPRGH
YROWDJHLQSXWPRGH
6LJQDOSKDVH
6LQJOH*UDSK0HQX
6LQJOHKDUPRQL.PRGH
GHV.ULEHG
6LQJOHUHIHUHQ.HPRGH
$XWR)XQ.WLRQV0HQX
GHV.ULEHG
0DLQ'LVSOD\PHQXGHV.ULSWLRQV
RXWSXWGLVSOD\.KRL.HV
2XWSXW(TXDWLRQV0HQX
2XWSXW)LOWHUV0HQX
2XWSXW2IIVHW([SDQG0HQX
5HIHUHQ.H&KDQQHO0HQX
6LQJOHUHIHUHQ.HPRGH
&RQILJXUDWLRQ0HQX
6/23(>[email protected])
6SH.LIL.DWLRQV
GHWDLOHGOLVWLQJRI$
IRUDX[LOLDU\LQSXWV$IRUGDWDVWRUDJHEXIIHU$
IRUGHPRGXODWRU$
IRUPHDVXUHPHQWPRGHV$
IRURV.LOODWRU$
IRURXWSXWV$
IRUUHIHUHQ.H.KDQQHO$
IRUVLJQDO.KDQQHO$
6SH.WUDO'LVSOD\0HQX
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 215/217
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 216/217
,1'(;
,1'(;
8/7/2019 Manual Lock-in
http://slidepdf.com/reader/full/manual-lock-in 217/217
:$55$17<
$0(7(6,*1$/5(&29(5<DSDUWRI$0(7($GYDQ.HG0HDVXUHPHQW7H.KQRORJ\,Q.ZDUUDQWVHD.KLQVWUXPHQW
RILWVRZQPDQXID.WXUHWREHIUHHRIGHIH.WVLQPDWHULDODQGZRUNPDQVKLSIRUDSHULRGRI21(\HDUIURPWKHGDWHRIGHOLYHU\
WRWKHRULJLQDOSXU.KDVHU2EOLJDWLRQVXQGHUWKLV:DUUDQW\VKDOOEHOLPLWHGWRUHSOD.LQJUHSDLULQJRUJLYLQJ.UHGLWIRUWKH
SXU.KDVH DW RXU RSWLRQ RI DQ\ LQVWUXPHQWV UHWXUQHG VKLSPHQW SUHSDLG WR RXU 6HUYL.H 'HSDUWPHQW IRU WKDW SXUSRVH
SURYLGHG SULRU DXWKRUL]DWLRQ IRU VX.K UHWXUQ KDV EHHQ JLYHQ E\ DQ DXWKRUL]HG UHSUHVHQWDWLYH RI $0(7( $GYDQ.HG
0HDVXUHPHQW7H.KQRORJ\,Q.
7KLV:DUUDQW\VKDOOQRWDSSO\WRDQ\LQVWUXPHQWZKL.KRXULQVSH.WLRQVKDOOGLV.ORVHWRRXUVDWLVID.WLRQWRKDYHEH.RPH
GHIH.WLYH RU XQXVDEOH GXHWR DEXVH PLVKDQGOLQJPLVXVHD..LGHQWDOWHUDWLRQ QHJOLJHQ.HLPSURSHU LQVWDOODWLRQ RU RWKHU
.DXVHVEH\RQGRXU.RQWURO7KLV:DUUDQW\VKDOOQRWDSSO\WRDQ\LQVWUXPHQWRU .RPSRQHQWQRWPDQXID.WXUHGE\$0(7(
$GYDQ.HG 0HDVXUHPHQW 7H.KQRORJ\ ,Q. :KHQ SURGX.WV PDQXID.WXUHG E\ RWKHUV DUH LQ.OXGHG $0(7( $GYDQ.HG
0HDVXUHPHQW 7H.KQRORJ\ ,Q. HTXLSPHQW WKH RULJLQDO PDQXID.WXUHUV :DUUDQW\ LV H[WHQGHG WR $0(7( $GYDQ.HG
0HDVXUHPHQW 7H.KQRORJ\ ,Q..XVWRPHUV $0(7($GYDQ.HG 0HDVXUHPHQW 7H.KQRORJ\ ,Q.UHVHUYHV WKH ULJKW WRPDNH
.KDQJHVLQGHVLJQDWDQ\WLPHZLWKRXWLQ.XUULQJDQ\REOLJDWLRQWRLQVWDOOVDPHRQXQLWVSUHYLRXVO\SXU.KDVHG
7+(5( $5( 12 :$55$17,(6:+,&+(;7(1'%(<21'7+( '(6&5,37,21 217+( )$&( +(5(2) 7+,6