You are on page 1of 124









23(5$725¶60$18$/
3DWLHQW0RQLWRU0









(8UHSUHVHQWDWLYH
7(&120('6/
9DOHQFLD0DGULG6SDLQ

0DQXIDFWXUHU
0HGLDQD&R/WG
:RQMX0HGLFDO,QGXVWU\3DUN'RQJKZDUL
0XQPDNHXS:RQMXVL*DQJZRQGR.RUHD
7HO     
)D[     


3DUW1XPEHU$
5HYLVHG'DWH
3ULQWHGLQ.RUHD

&RS\ULJKW‹$OOULJKWVUHVHUYHG

'LUHFWLYH

z &RS\ULJKW ODZ DOORZV QR SDUW RI WKLV LQVWUXFWLRQ PDQXDO WR EH UHSURGXFHG ZLWKRXW
SHUPLVVLRQ
z 7KHFRQWHQWRIWKLVPDQXDODUHVXEMHFWWRFKDQJHZLWKRXWQRWLFH
z 7KH FRQWHQWV RI WKLV PDQXDO VKRXOG EH FRUUHFW ,I IRU VRPH UHDVRQ WKHUH DUH DQ\
TXHVWLRQDEOHSRLQWVSOHDVHGRQRWKHVLWDWHWRFRQWDFWRXUVHUYLFHFHQWHU
z 7KHPDQXDOZLOOEHUHSODFHGLIDQ\SDJHVDUHPLVVLQJRUFROODWLRQLVLQFRUUHFW

:DUUDQW\

z 3OHDVHFRQWDFW\RXUORFDOGLVWULEXWRUDERXWWKHZDUUDQW\SHULRG
z 'HYLFHIDLOXUHRUGDPDJHUHODWHGWRWKHIROORZLQJVLWXDWLRQVGXULQJWKHJXDUDQWHHSHULRG
LVQRWFRYHUHGE\WKLVZDUUDQW\
z ,QVWDOODWLRQWUDQVIHULQVWDOODWLRQPDLQWHQDQFHDQGUHSDLUVE\DQ\SHUVRQRWKHUWKDQ
DQDXWKRUL]HG0HGLDQDHPSOR\HHRUWHFKQLFLDQVSHFLILHGE\0HGLDQD
z 'DPDJH VXVWDLQHG WR WKH 0HGLDQD SURGXFW V  FDXVHG E\ SURGXFW V  IURP DQRWKHU
FRPSDQ\H[FOXGLQJSURGXFWVGHOLYHUHGE\0HGLDQD
z 'DPDJH±FDXVHGE\PLVKDQGOLQJDQGRUPLVXVH±LVWKHUHVSRQVLELOLW\RIWKHXVHU
z 0DLQWHQDQFH DQG UHSDLUV XWLOL]LQJ PDLQWHQDQFH FRPSRQHQWV WKDW DUH QRW VSHFLILHG
E\0HGLDQD
z 'HYLFHPRGLILFDWLRQVRUXVHRIDFFHVVRULHVQRWUHFRPPHQGHGE\0HGLDQD
z 'DPDJHFDXVHGE\DFFLGHQWVRUQDWXUDOGLVDVWHUV HDUWKTXDNHVIORRGLQJHWF 
z 'DPDJHUHVXOWLQJIURPXVDJHZKHUHFDXWLRQVWDWHPHQWVDQGRSHUDWLQJLQVWUXFWLRQV
VKRZQLQWKLVPDQXDOKDYHQRWEHHQIROORZHG
z 'DPDJHGXHWRQHJOHFWRIVSHFLILHGPDLQWHQDQFHFKHFNV
z 7KLV ZDUUDQW\ RQO\ FRYHUV WKH KDUGZDUH RI WKH 0 7KH ZDUUDQW\ GRHV QRW FRYHU WKH
IROORZLQJVHOHFWLRQV
z :KDWHYHU GDPDJH RU ORVV UHVXOWV IURP WKH DWWDFKPHQW RI DFFHVVRULHV RU WKHLU
RSHUDWLRQ
z ,QWKHHYHQWRIDGHIHFWLQWKHSURGXFWFRQWDFWRXUVDOHVRXWOHWRU(8UHSUHVHQWDWLYH
DVQRWHGRQWKHEDFNFRYHU

z 7KH0FRQIRUPVWRWKH(0&VWDQGDUG,(&
1RWHWKDWPRELOHSKRQHVVKRXOGQRWEHXVHGLQWKHYLFLQLW\RIWKH0

1RWHKRZHYHUDQ\GHYLFHQRWFRPSO\LQJWRWKH(0&VWDQGDUGWKDWLVXVHGZLWKWKH 
0UHQGHUVWKH0DVQRQFRPSOLDEOHWRWKH(0&VWDQGDUG

7UDGHPDUN

3URGXFW EUDQG QDPHV VKRZQ LQ WKLV PDQXDO DUH OLNHO\ WR EH WKH WUDGHPDUN RU UHJLVWHUHG
WUDGHPDUNRIWKHFRPSDQ\FRQFHUQHG

&217(176
&217(176L
6$)(7<,1)250$7,21
*HQHUDO6DIHW\,QIRUPDWLRQ
:DUQLQJ
&DXWLRQV
,1752'8&7,21
,QWHQGHG8VHIRUWKH0
$ERXW7KLV0DQXDO
,GHQWLI\LQJWKH00RQLWRU&RQILJXUDWLRQV
)HDWXUHVIRUWKH0
'(6&5,37,212)7+(021,725
)URQW3DQHO&RPSRQHQWV
5HDU3DQHO&RPSRQHQWV
/HIW3DQHO&RPSRQHQWV
5LJKW3DQHO&RPSRQHQWV
'LVSOD\V
6(77,1*837+(021,725
8QSDFNLQJDQG,QVSHFWLRQ
/LVWRI&RPSRQHQWV
3RZHU&DEOH&RQQHFWLRQV
0HDVXUHPHQW&DEOH&RQQHFWLRQV
%$77(5<23(5$7,21
2SHUDWLQJWKH0RQLWRURQ%DWWHU\3RZHU
%DWWHU\6WDWXV,QGLFDWLRQ
&KDUJLQJD/RZ%DWWHU\
86,1*7+(021,725
7XUQLQJ2QWKH0RQLWRU
6HWWLQJ'DWHDQG7LPH
6HWWLQJ%DVLF6HWXS3DUDPHWHUV
6HWWLQJWKH0DLQ6FUHHQ
$/$506$1'/,0,76
*HQHUDO
$ODUP3ULRULW\DQG0HVVDJHV
9LVXDO$ODUP,QGLFDWLRQ
$XGLEOH$ODUP,QGLFDWLRQ
9HULI\LQJ9LVXDODQG$XGLEOH$ODUP,QGLFDWLRQ
&KDQJLQJ$ODUP/LPLWV
$XGLEOH$ODUP6LOHQFH
$XGLEOH$ODUP6XVSHQG,QKLELWLRQ
(&*021,725,1*
*HQHUDO
6HWXS&RQQHFWLRQV
'HVFULSWLRQRI+5350HQX)XQFWLRQV
'HVFULSWLRQRI(&*:DYHIRUP0HQX)XQFWLRQV
1,%3021,725,1*
*HQHUDO
6HWXS&RQQHFWLRQV
1,%30HDVXUHPHQW0RGHV
'HVFULSWLRQRI1,%30HQX)XQFWLRQV
6S2021,725,1*
*HQHUDO
6HWXS&RQQHFWLRQV

L
ȱ

'HVFULSWLRQRI6S20HQX)XQFWLRQV
'HVFULSWLRQRI6S2:DYHIRUP0HQX)XQFWLRQV
5(63,5$7,21021,725,1*
*HQHUDO
6HWXS&RQQHFWLRQV
'HVFULSWLRQRI5HVSLUDWLRQ0HQX)XQFWLRQV
'HVFULSWLRQRI5HVSLUDWLRQ:DYHIRUP0HQX)XQFWLRQV
&$312*5$3+<021,725,1*
*HQHUDO
6HWXS&RQQHFWLRQV
'HVFULSWLRQRI(W&20HQX)XQFWLRQV
'HVFULSWLRQRI(W&2:DYHIRUP0HQX)XQFWLRQV
7(03(5$785(021,725,1*
*HQHUDO
6HWXS&RQQHFWLRQV
'HVFULSWLRQRI7HPSHUDWXUH0HQX)XQFWLRQV
75(1'6
*HQHUDO
7DEXODU7UHQG'DWD
*UDSKLFDO7UHQG'DWD
0(186758&785(
35,17,1*
*HQHUDO
3ULQW2XW&RQILJXUDWLRQ
(;7(51$/,17(5)$&(
*HQHUDO
&DEOH&RQQHFWLRQ
1XUVH&DOO,QWHUIDFH
0$,17(1$1&(
5HF\FOLQJDQG'LVSRVDO
5HWXUQLQJWKH0RQLWRUDQG6\VWHP&RPSRQHQWV
6HUYLFH
3HULRGLF6DIHW\&KHFNV
&OHDQLQJ
%DWWHU\0DLQWHQDQFH
/RDGLQJ3ULQWHU3DSHU
7528%/(6+227,1*
*HQHUDO
&RUUHFWLYH$FWLRQ
(0, (OHFWURPDJQHWLF,QWHUIHUHQFH 
2EWDLQLQJ7HFKQLFDO$VVLVWDQFH
)$&725<'()$8/76
*HQHUDO
3DUDPHWHU5DQJHVDQG'HIDXOW6HWWLQJV
63(&,),&$7,21
'LVSOD\
&RQWUROV
$ODUPV
3K\VLFDO&KDUDFWHULVWLFVDQG3ULQWHU
(OHFWULFDO
(QYLURQPHQWDO&RQGLWLRQV
7RQH'HILQLWLRQ
0HDVXUHPHQW3DUDPHWHUV
7UHQGV
&RPSOLDQFH
0DQXIDFWXUHU¶V'HFODUDWLRQ

LL
)LJXUHV
)LJXUH)URQW3DQHO&RPSRQHQWV
)LJXUH5HDU3DQHO&RPSRQHQWV
)LJXUH/HIW3DQHO&RPSRQHQWV
)LJXUH5LJKW3DQHO&RPSRQHQWV
)LJXUH'LVSOD\V
)LJXUH$&3RZHU&RQQHFWLRQ
)LJXUH%DWWHU\3ODFHPHQW
)LJXUH,QLWLDO6FUHHQ
)LJXUH6HWXS0HQX
)LJXUHFK:DYH6FUHHQ
)LJXUH%LJ1XPEHU6FUHHQ
)LJXUH6WDQGDUG(OHFWURGH3ODFHPHQW
)LJXUH(OHFWURGH3ODFHPHQW
)LJXUH+535'LVSOD\
)LJXUH(&*:DYHIRUP'LVSOD\
)LJXUH1,%3'LVSOD\
)LJXUH6S2'LVSOD\
)LJXUH6S2:DYHIRUP'LVSOD\
)LJXUH5HVSLUDWLRQ'LVSOD\
)LJXUH5HVSLUDWLRQ:DYHIRUP'LVSOD\
)LJXUH&RQQHFWLRQIRUPDLQVWUHDP
)LJXUH&RQQHFWLRQIRUVLGHVWUHDP
)LJXUH(W&2'LVSOD\
)LJXUH(W&2:DYHIRUP'LVSOD\
)LJXUH7HPSHUDWXUH'LVSOD\
)LJXUH7DEXODU7UHQG6FUHHQ
)LJXUH*UDSKLFDO7UHQG6FUHHQ
)LJXUH2QH6KRW3ULQWLQJ
)LJXUH&RQWLQXRXV3ULQWLQJ
)LJXUH7DEXODU7UHQG3ULQWLQJ
)LJXUH6HWWLQJ,QIRUPDWLRQ3ULQWLQJ
)LJXUH1XUVH&DOO,QWHUIDFH3LQ/D\RXW
)LJXUH3ULQWHU3DSHU5HSODFHPHQW

7DEOHV
7DEOH0&RQWUROV
7DEOH3DQHODQG/DEHO6\PEROV
7DEOH'LVSOD\6\PEROV
7DEOH'LVSOD\&RORUV
7DEOH6WDQGDUG$FFHVVRULHV
7DEOH2SWLRQDO$FFHVVRULHV
7DEOH)URQW3DQHO,QGLFDWLRQVIRU3RZHU6RXUFH
7DEOH7KH0RQLWRU%DWWHU\6WDWXV,FRQ
7DEOH)URQW3DQHO,QGLFDWLRQVIRU%DWWHU\6WDWXV
7DEOH'DWH7LPH0HQX
7DEOH6HWXS0HQX
7DEOH+LJK3ULRULW\$ODUP
7DEOH0HGLXP3ULRULW\$ODUP
7DEOH/RZ3ULRULW\$ODUP
7DEOH,QIRUPDWLYH0HVVDJHV
7DEOH9LVXDO$ODUP&KDUDFWHULVWLFV
7DEOH$XGLEOH$ODUP&KDUDFWHULVWLFV
7DEOH$ODUP/LPLWV0HQX
7DEOH$ODUP/LPLWV5DQJHV
7DEOH(&*/HDG&RORUV
7DEOH(&*/HDG3DLUV
7DEOH+HDUW5DWH5DQJHVIRU6LQXVDQG5K\WKPV
7DEOH+5350HQX
7DEOH(&*:DYHIRUP0HQX
7DEOH&XII6L]H
7DEOH1,%30HQX

LLL
ȱ

7DEOH6S26HQVRUV
7DEOH6S20HQX
7DEOH6S2:DYHIRUP0HQX
7DEOH5HVSLUDWLRQ0HQX
7DEOH5HVSLUDWLRQ:DYHIRUP0HQX
7DEOH(W&20HQX
7DEOH(W&2:DYHIRUP0HQX
7DEOH7HPSHUDWXUH0HQX
7DEOH7DEXODU7UHQG0HQX
7DEOH*UDSKLFDO7UHQG0HQX
7DEOH1XUVH&DOO,QWHUIDFH&RQQHFWLRQV
7DEOH3DUDPHWHU5DQJHVDQG)DFWRU\'HIDXOWV
7DEOH(OHFWURPDJQHWLF(PLVVLRQV ,(& 
7DEOH(OHFWURPDJQHWLF,PPXQLW\ ,(& 
7DEOH(OHFWURPDJQHWLF,PPXQLW\ ,(& 
7DEOH5HFRPPHQGHG6HSDUDWLRQ'LVWDQFHV
7DEOH&DEOHV ,(& 


LY
6$)(7<,1)250$7,21

*HQHUDO6DIHW\,QIRUPDWLRQ

7KLV VHFWLRQ FRQWDLQV LPSRUWDQW VDIHW\ LQIRUPDWLRQ UHODWHG WR JHQHUDO XVH RI WKH 0
PXOWLSDUDPHWHU SDWLHQW PRQLWRU 2WKHU LPSRUWDQW VDIHW\ LQIRUPDWLRQ DSSHDUV WKURXJKRXW
WKHPDQXDO7KH0ZLOOEHUHIHUUHGWRDVWKHPRQLWRUWKURXJKRXWWKLVPDQXDO

,PSRUWDQW%HIRUHXVHFDUHIXOO\UHDGWKLVPDQXDODFFHVVRU\GLUHFWLRQVIRUXVHDOO
SUHFDXWLRQDU\LQIRUPDWLRQDQGVSHFLILFDWLRQV

:DUQLQJ


:DUQLQJVDUHLGHQWLILHGE\WKH:$51,1*V\PEROVKRZQDERYH

:DUQLQJVDOHUW\RXWRSRWHQWLDOVHULRXVRXWFRPHV GHDWKLQMXU\RUDGYHUVHHYHQWV 
WRWKHSDWLHQWRUXVHU

:$51,1* 'R QRW WDNH LQWR RU XVH WKH PRQLWRU LQ ORFDWLRQV ZKHUH KLJKO\
 FRPEXVWLEOHDQHVWKHWLFVRUIODPPDEOHJDVHVDUHXVHGRULQKLJKSUHVVXUHR[\JHQ
URRPVRULQVLGHR[\JHQWHQWVDVWKLVPD\FDXVHDIODPPDEOHH[SORVLRQ
:$51,1*:KHQXVLQJWKHPRQLWRUZLWKDFRPPHUFLDOHOHFWULFSRZHUVRXUFHXVH
 WKH PRQLWRU ZLWK DQ HOHFWULF SRZHU ZDOO VRFNHW ZLWK D JURXQGLQJ ZLUH IRU PHGLFDO
XVH1RWGRLQJVRFRXOGFDXVHHOHFWULFVKRFN
:$51,1*'RQRWFRQQHFWJURXQGLQJZLUHWRJDVSLSHV7KLVFRXOGFDXVHILUH

:$51,1*2QO\GRFWRUVDQGRIILFLDOO\FHUWLILHGSHUVRQQHOVKRXOGXVHWKLVPRQLWRU
 'RQRWDOORZSDWLHQWVWRWRXFKWKLVPRQLWRU$OORZLQJSDWLHQWVWRWRXFKWKLVPRQLWRU
FRXOGFDXVHDFFLGHQWV
:$51,1*7KLVPRQLWRUFDQQRWEHXVHGZKHQ05,LVLQSURJUHVV,I05,LVLQXVH
 NHHSSDWLHQWDWWDFKPHQWVDZD\IURPSDWLHQWVWRSUHYHQWDFFLGHQWV
:$51,1* 7KH PRQLWRU FRQIRUPV WR WKH UHTXLUHPHQWV RI WKH (0& VWDQGDUG
 ,(&  DQG PD\ WKHUHIRUH EH XVHG VLPXOWDQHRXVO\ ZLWK SDFHPDNHUV DQG
RWKHU HOHFWULFDO VLPXODWRUV ,W VKRXOG KRZHYHU EH QRWHG WKDW WKH 0 PD\ EH
DIIHFWHGE\HOHFWULFDOVFDOSHOVDQGPLFURZDYHWKHUDSHXWLFDSSDUDWXV3OHDVHFKHFN
RSHUDWLRQRIWKHPRQLWRUGXULQJDQGDIWHUXVHRIVXFKHTXLSPHQW
:$51,1* 'R QRW WDNH PRELOH SKRQHV RU WUDQVFHLYHUV LQWR D URRP ZKHUH WKLV
 PRQLWRULVLQVWDOOHGDVVXFKGHYLFHVPD\FDXVHDFFLGHQWV
:$51,1*,QRUGHUWRDYRLGDFFLGHQWVGRQRWXVHDQ\XQDXWKRUL]HG DFFHVVRULHV
 RURSWLRQV
:$51,1* 7KRURXJKO\ UHDG WKH LQVWUXFWLRQ PDQXDOV VXSSOLHG ZLWK DFFHVVRULHV
 DQG RSWLRQV WR HQVXUH FRUUHFW XVH 7KLV LQVWUXFWLRQ PDQXDO GRHV QRW FDUU\ WKH
FDXWLRQVHOHFWLRQVIRUVXFKHTXLSPHQW
:$51,1*'RQRWRSHQFRYHURUGLVDVVHPEOHWKLVPRQLWRU'RLQJVRFRXOGFDXVH
 HOHFWULF VKRFN RU ILUH ,W LV SURKLELWHG E\ ODZ WR PRGLI\ WKH PRQLWRU ZLWKRXW
DXWKRUL]DWLRQ
:$51,1* 'R QRW XVH SRZHU VRXUFH RWKHU WKDQ WKH VSHFLILHG YROWDJH 
 9a+] DVWKLVPD\FDXVHILUHRUHOHFWULFVKRFN
:$51,1*3UHXVHLQVSHFWLRQDQGSUHYHQWLYHPDLQWHQDQFHPXVWEHSHUIRUPHGIRU
 VDIHXVH


ȱ

:$51,1*7KHPRQLWRUPD\EHXVHGZLWKHOHFWULFDOVXUJLFDOHTXLSPHQW

)ROORZ WKH LQVWUXFWLRQ PDQXDOV IRU PHGLFDO LQVWUXPHQWV ± QRWDEO\ HOHFWURVXUJLFDO
DQGGLDWKHUP\LQVWUXPHQWV±ZKHQXVHGDVWKHLUKLJK±IUHTXHQF\HQHUJ\XQLWVPD\
FDXVHEXUQVWRSDWLHQWVYLDDWWDFKPHQWV
:$51,1* 7KLV PRQLWRU LV SURWHFWHG DJDLQVW WKH GLVFKDUJH RI D GHILEULOODWRU
 +RZHYHU GR QRW WRXFK WKH PRQLWRU ZKHQ D GHILEULOODWRU LV EHLQJ GLVFKDUJHG
HOHFWULILHG DVGRLQJVRPD\FDXVHHOHFWULFVKRFN
:$51,1*7KHIROORZLQJFDXWLRQVDSSO\ZKHQFRQQHFWLQJWKHPRQLWRUZLWKRWKHU
 HTXLSPHQW
 (QVXUHWKDWWKHFRQQHFWHGHTXLSPHQWLVLQDFFRUGDQFHZLWKWKH,(&RU
,(&VDIHW\VWDQGDUGVVRWKDWWKHV\VWHPFRPSOLHVZLWK,(&
 (PSOR\DGGLWLRQDOSURWHFWLYHPHDVXUHV HJDGGLWLRQDOSURWHFWLYHHDUWKLQJ DV
QHFHVVDU\
:$51,1* 'R QRW FRQQHFW GHYLFHV WKDW GR QRW PHHW PHGLFDO VDIHW\ VWDQGDUGV
 VXFKDVFRPPHUFLDO3&V DVWKH\PD\FDXVHHOHFWULFVKRFN7KLVPRQLWRUPHHWV
WKHUHVWULFWHGOHYHORIOHDNDJHFXUUHQWUHTXLUHGIRUPHGLFDOGHYLFHV7KHUHIRUHWKLV
PRQLWRU FDQQRW EH FRQQHFWHG WR D GHYLFH WKDW ZRXOG JLYH D FRPELQHG WRWDO RI
OHDNDJHFXUUHQWEH\RQGWKHUHVWULFWHGOHYHO
:$51,1* 'R QRW SODFH DQ\WKLQJ RQ WRS RI WKLV PRQLWRU ,I VRPHWKLQJ LV VSLOOHG
 RYHUWKHPRQLWRURUJHWVLQWRLWVXFKVSLOODJHPD\FDXVHILUHRUHOHFWULFVKRFN  ,I
IOXLG VSLOOV RQ WKH PRQLWRU DFFLGHQWDOO\ GLVFRQQHFW SRZHU FRUG ZLSH GU\
LPPHGLDWHO\DQGKDYHWKHPRQLWRUVHUYLFHGWRPDNHVXUHWKDWQRKD]DUGH[LVWV
:$51,1*'RQRWSODFHKHDY\REMHFWVRQWKHSRZHUFRUGDVGRLQJVRPD\FDXVH
 ILUHRUHOHFWULFVKRFN
:$51,1*%HIRUHFRQGXFWLQJPDLQWHQDQFHZRUNWXUQWKHSRZHU2))DQGXQSOXJ
 WKHSRZHUFRUGIURPWKHZDOOVRFNHWWRSUHYHQWHOHFWULFVKRFN
:$51,1*:KHQWKHIROORZLQJRFFXUWXUQWKHSRZHU2))LPPHGLDWHO\DQGXQSOXJ
 WKHSRZHUFRUGIURPWKHZDOOVRFNHW&RQWLQXHGXVHLQVXFKVLWXDWLRQVPD\FDXVH
ILUHRUHOHFWULFVKRFN
z 7KHUHLVVPRNHRUDVWUDQJHRGRUOHDNLQJRXWRIWKHGHYLFH
z 7KHGHYLFHKDVEHHQGURSSHGRULPSDFWHGE\DQREMHFW
z /LTXLGRUIRUHLJQPDWWHUJHWVLQVLGHWKHGHYLFH
z 'HYLFHIDLOXUHKDVRFFXUUHG
$OVRZKHQDQ\RIWKHDERYHRFFXUVSURPSWO\GRWKHIROORZLQJ
 &KHFNWRVHHWKDWWKHSRZHUFRUGKDVEHHQXQSOXJJHGIURPWKHZDOOVRFNHW
 3ODFHDQ³2XWRI2UGHU´VLJQRQWKHGHYLFHDQGGRQRWXVHLW
:$51,1*'RQRWFRQQHFWPRUHWKDQRQHSDWLHQWWRWKHPRQLWRU'RQRWFRQQHFW
 PRUHWKDQRQHPRQLWRUWRDSDWLHQW
:$51,1* 7KH SDWLHQW PRQLWRU LV D SUHVFULSWLRQ GHYLFH DQG LV WR EH RSHUDWHG E\
 TXDOLILHGSHUVRQQHORQO\
:$51,1* $V ZLWK DQ\ PHGLFDO HTXLSPHQW FDUHIXOO\ URXWH SDWLHQW FDEOLQJ WR
 UHGXFHWKHSRVVLELOLW\RISDWLHQWHQWDQJOHPHQWRUVWUDQJXODWLRQ
:$51,1*1HYHUOLIWWKHPRQLWRUE\WKHVHQVRUFDEOHEORRGSUHVVXUHKRVHSRZHU
 FRUGRUDQ\RWKHUDFFHVVRU\6XFKDFFHVVRULHVFRXOGGHWDFKFDXVLQJWKHPRQLWRU
WRIDOORQWKHSDWLHQW



&DXWLRQV


&DXWLRQVDUHLGHQWLILHGE\WKH&$87,21V\PEROVKRZQDERYH

&DXWLRQVWDWHPHQWVLGHQWLI\FRQGLWLRQVRUSUDFWLFHVWKDWFRXOGUHVXOWLQGDPDJHWR
WKHHTXLSPHQWRURWKHUSURSHUW\


&$87,21 7KH PRQLWRU PD\ QRW RSHUDWH SURSHUO\ LI LW LV RSHUDWHG RU VWRUHG DW
FRQGLWLRQV RXWVLGH WKH UDQJHV VWDWHG LQ WKLV PDQXDO RU VXEMHFWHG WR H[FHVVLYH
VKRFNRUGURSSLQJ

&$87,21 :KHQ FRQQHFWLQJ WKH SDWLHQW PRQLWRU WR DQ\ LQVWUXPHQW YHULI\ SURSHU
RSHUDWLRQEHIRUHFOLQLFDOXVH%RWKWKHPRQLWRUDQGWKHLQVWUXPHQWFRQQHFWHGWRLW
PXVWEHFRQQHFWHGWRDJURXQGHGRXWOHW

&$87,21$FFHVVRU\HTXLSPHQWFRQQHFWHGWRWKHPRQLWRU¶VGDWDLQWHUIDFHPXVWEH
FHUWLILHG DFFRUGLQJ WR ,(& IRU GDWDSURFHVVLQJ HTXLSPHQW RU ,(& IRU
HOHFWURPHGLFDO HTXLSPHQW $OO FRPELQDWLRQV RI HTXLSPHQW PXVW EH LQ FRPSOLDQFH
ZLWK ,(& V\VWHP UHTXLUHPHQWV $Q\RQH ZKR FRQQHFWV DGGLWLRQDO
HTXLSPHQW WR WKH VLJQDO LQSXW RU VLJQDO RXWSXW SRUW FRQILJXUHV D PHGLFDO V\VWHP
DQGLVWKHUHIRUHUHVSRQVLEOHWKDWWKHV\VWHPFRPSOLHVZLWKWKHUHTXLUHPHQWVRI,(&
DQGWKHHOHFWURPDJQHWLFFRPSDWLELOLW\V\VWHPVWDQGDUG,(&,ILQ
GRXEWFRQVXOW0HGLDQD7HFKQLFDO6XSSRUW5HSUHVHQWDWLYH

&$87,215LVNRIH[SORVLRQLIEDWWHU\LVUHSODFHGE\DQLQFRUUHFWW\SH

&$87,21 :KHUH WKH LQWHJULW\ RI WKH H[WHUQDO SURWHFWLYH FRQGXFWRU LQ WKH
LQVWDOODWLRQ RU LWV DUUDQJHPHQW LV LQ GRXEW HTXLSPHQW VKDOO EH RSHUDWHG IURP LWV
LQWHUQDOHOHFWULFDOSRZHUVRXUFH


ȱ









7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN


,1752'8&7,21

:$51,1* 3DWLHQW FRQGLWLRQV PD\ UHVXOW LQ HUURQHRXV UHDGLQJV ,I WKH
 PHDVXUHPHQWV DUH VXVSHFW YHULI\ WKH UHDGLQJ XVLQJ DQRWKHU FOLQLFDOO\ DFFHSWHG
PHDVXUHPHQWPHWKRG

,QWHQGHG8VHIRUWKH0

7KH 0 LV LQWHQGHG WR EH XVHG WR PRQLWRU HOHFWURFDUGLRJUDSK\ (&*  KHDUW UDWH +5 
QRQLQYDVLYH EORRG SUHVVXUH 1,%3   V\VWROLF GLDVWROLF DQG PHDQ DUWHULDO SUHVVXUHV
IXQFWLRQDO DUWHULDO R[\JHQ VDWXUDWLRQ 6S2  SXOVH UDWH 35  UHVSLUDWLRQ UDWH 55 
FDSQRJUDSK\ (W&2 DQG ,Q&2  WHPSHUDWXUH 7HPS  IRU DGXOW SHGLDWULF DQG QHRQDWDO
SDWLHQWV LQ DOO DUHDV RI D KRVSLWDO DQG KRVSLWDOW\SH IDFLOLWLHV 0RQLWRU XVHUV VKRXOG EH
VNLOOHGDWWKHOHYHORIDWHFKQLFLDQGRFWRUQXUVHRUPHGLFDOVSHFLDOLVW

1RWH+RVSLWDOXVHW\SLFDOO\LQFOXGHVVXFKDUHDVDVJHQHUDOFDUHIORRUVRSHUDWLQJURRPV
VSHFLDO SURFHGXUH DUHDV LQWHQVLYH DQG FULWLFDO FDUH DUHD ZLWKLQ WKH KRVSLWDO
+RVSLWDOW\SH IDFLOLWLHV LQFOXGH SK\VLFLDQ RIILFHEDVHG IDFLOLWLHV VOHHS ODEV VNLOOHG
QXUVLQJIDFLOLWLHVVXUJLFDOFHQWHUVDQGVXEDFXWHFDUHFHQWHUV

1RWH7KHPHGLFDOO\VNLOOHGDQGWUDLQHGXVHUFDQEHFOLQLFLDQVOLNHGRFWRUVDQGQXUVHVZKR
NQRZ KRZ WR WDNH DQG LQWHUSUHW D SDWLHQW¶V YLWDO VLJQV 7KHVH FOLQLFLDQV PXVW WDNH
GLUHFW UHVSRQVLELOLW\ IRU WKH SDWLHQW¶V OLIH 7KLV FDQ LQFOXGH FDUHJLYHUV RU PHGLFDOO\
WUDLQHG LQWHUSUHWHUV ZKR DUH DXWKRUL]HG XQGHU WKH DSSURSULDWH FOLQLFDO IDFLOLW\
SURFHGXUHVWRVXSSRUWSDWLHQWFDUH$Q\LQDSSURSULDWHVHWWLQJHVSHFLDOO\WKHDODUP
OLPLWRUDODUPQRWLILFDWLRQVHWWLQJVFDQOHDGWRDKD]DUGRXVVLWXDWLRQWKDWLQMXUHVWKH
SDWLHQW KDUPV WKH SDWLHQW RU WKUHDWHQV WKH SDWLHQW¶V OLIH 7KLV HTXLSPHQW VKRXOG
RQO\EHRSHUDWHGE\WUDLQHGXVHUVZKRFDQDGMXVWWKHVHWWLQJVRIWKHSDWLHQWPRQLWRU

$ERXW7KLV0DQXDO

7KLVPDQXDOH[SODLQVKRZWRVHWXSDQGXVHWKH0SDWLHQWPRQLWRU 

5HDG WKH HQWLUH PDQXDO LQFOXGLQJ WKH 6DIHW\ ,QIRUPDWLRQ VHFWLRQ EHIRUH \RX
RSHUDWHWKHPRQLWRU



,GHQWLI\LQJWKH00RQLWRU&RQILJXUDWLRQV

7KHIROORZLQJWDEOHLGHQWLILHV0PRQLWRUFRQILJXUDWLRQVDQGKRZWKH\DUHLQGLFDWHG7KH
UHIHUHQFHQXPEHUDQGVHULDOQXPEHUDUHORFDWHGRQWKHEDFNRIWKHPRQLWRU
$OOLQIRUPDWLRQLQWKLVPDQXDOLQFOXGLQJWKHLOOXVWUDWLRQVLVEDVHGRQDPRQLWRUFRQILJXUHG
ZLWK WKH %DWWHU\ 0HGLDQD RU 1HOOFRU 6S2 PRGXOH 3ULQWHU PRGXOH 7&3,3 PRGXOH DQG
&DSQRJUDSK\ (W&2DQG,Q&2 ,IWKHUHOHYDQWIXQFWLRQVGRQRWH[LVWSOHDVHYHULI\\RXU
XQLWFRQILJXUDWLRQ
5HIHUHQFHQR 'HVFULSWLRQ
00 $  06WDQGDUG (&*1,%35HVSLUDWLRQ7HPSHUDWXUH 
0HGLDQD6S2
003 $  06WDQGDUG0HGLDQD6S23ULQWHU
00/ $  06WDQGDUG0HGLDQD6S27&3,3
003/ $  06WDQGDUG0HGLDQD6S23ULQWHU7&3,3
003/( $  06WDQGDUG0HGLDQD6S23ULQWHU7&3,3&DSQRJUDSK\
001 $  06WDQGDUG1HOOFRU6S2
0031 $  06WDQGDUG1HOOFRU6S23ULQWHU
00/1 $  06WDQGDUG1HOOFRU6S27&3,3
003/1 $  06WDQGDUG1HOOFRU6S23ULQWHU7&3,3
003/1( $  06WDQGDUG1HOOFRU6S23ULQWHU7&3,3&DSQRJUDSK\

1RWH 7KH QXPHULF DIWHU GDVK FDQ EH FKDQJHG WR   RU  LQ DFFRUGDQFH ZLWK WKH
RSHUDWLQJWLPHRIWKHLQVWDOOHGEDWWHU\7KHQXPHULF³´UHSUHVHQWVWKDWQREDWWHU\LV
LQVWDOOHG
1RWH7KHDOSKDEHW³$´FDQEHDGGHGDVWKHODVWGLJLWRIUHIHUHQFHQXPEHULQDFFRUGDQFH
ZLWKWKHUHJLRQ

)HDWXUHVIRUWKH0

3K\VLFDO0HFKDQLFDO
7KH 0 LV D PXOWLSDUDPHWHU SDWLHQW PRQLWRU ZKLFK FDQ EH EDWWHU\RSHUDWHG ZKHQ $&
SRZHUVRXUFHLVQRWDYDLODEOH

(OHFWULFDO
7KH0LVSRZHUHGE\DQLQWHUQDOEDWWHU\SDFNWKDWW\SLFDOO\SURYLGHVRUKRXU V RI
PRQLWRULQJ IURP IXOO\ FKDUJHG QHZ EDWWHULHV 7KH EDWWHULHV DUH FRQWLQXRXVO\ UHFKDUJHG
ZKHQ WKH PRQLWRU LV FRQQHFWHG WR $& SRZHU VRXUFH 5HIHU WR WKH %DWWHU\ 2SHUDWLRQ
VHFWLRQIRUGHWDLOV

'LVSOD\
7KH PRQLWRULQJ VFUHHQ LV D FRORU /&' WKDW VKRZV DOO JUDSKLF DQG QXPHULF SDWLHQW
LQIRUPDWLRQDVZHOODVVWDWXVFRQGLWLRQVDQGZDUQLQJPHVVDJHV

-RJGLDO
7KHMRJGLDOSURYLGHVXVHULQWHUDFWLRQZLWKWKHGLVSOD\DQGWKHPRQLWRUIXQFWLRQV5RWDWLQJ
DQG SUHVVLQJ WKH MRJ GLDO DOORZV WKH XVHU WR QDYLJDWH DQG PDNH FKDQJHV WR WKH GLVSOD\
HOHPHQWVDQGPRQLWRUIXQFWLRQV5HIHUWRWKH8VLQJWKH0RQLWRUVHFWLRQIRUGHWDLOV

$X[LOLDU\,QSXW2XWSXW V 
7KHPRQLWRUSURYLGHV/$186%DQG5-SRUWV


'(6&5,37,212)7+(021,725

)URQW3DQHO&RPSRQHQWV





 


                                 

 $ODUPLQGLFDWRU  1,%3VWDUWVWRSEXWWRQ 
 /&'  3ULQWEXWWRQ 
 $&LQGLFDWRU  +RPHEXWWRQ 
 %DWWHU\FKDUJLQJLQGLFDWRU  $ODUPVWRSEXWWRQ 
 3RZHUEXWWRQ   -RJGLDO 

)LJXUH)URQW3DQHO&RPSRQHQWV


7DEOH0&RQWUROV
6\PEROV 'HVFULSWLRQ

3RZHU%XWWRQ
WXUQVWKHPRQLWRURQRURII

1,%36WDUW6WRS%XWWRQ
WRJJOHVEHWZHHQVWDUWLQJDQGVWRSSLQJ1,%3PHDVXUHPHQWV

3ULQW%XWWRQ
SULQWVPHDVXUHGGDWDLIDQRSWLRQDOSULQWHULVLQVWDOOHG

+RPH%XWWRQ
H[LWV D PHQX GLVSOD\HG RQ WKH VFUHHQ DQG JRHV WR WKH PDLQ
VFUHHQ
$ODUP6WRS%XWWRQ 
VLOHQFHVWKHDXGLEOHDODUPWHPSRUDULO\
VXVSHQGVWKHDXGLEOHDODUPE\SUHVVLQJRYHUVHFRQGV

-RJ'LDO
SURYLGHV XVHU LQWHUDFWLRQ ZLWK WKH PRQLWRU WR FRQWURO WKH
IXQFWLRQV





5HDU3DQHO&RPSRQHQWV









                               


 +DQGOH

 $&SRZHUFRQQHFWRU
 (TXLSRWHQWLDOWHUPLQDO 
 '&SRZHUFRQQHFWRU

 6SHDNHU
  %DWWHU\FRYHU
  /$1SRUW
)LJXUH5HDU3DQHO&RPSRQHQWV


/HIW3DQHO&RPSRQHQWV















 3ULQWHU RSWLRQ 
 86%SRUW PLQL86%%7\SH 
 86%SRUW 86%$7\SH 
 5-SRUW

)LJXUH/HIW3DQHO&RPSRQHQWV




5LJKW3DQHO&RPSRQHQWV

















 (&*FRQQHFWRU
 6S2FRQQHFWRU
 1,%3FRQQHFWRU
 7HPSHUDWXUHFRQQHFWRU 
 &2&RQQHFWRU 2SWLRQ 

)LJXUH5LJKW3DQHO&RPSRQHQWV



7DEOH3DQHODQG/DEHO6\PEROV
6\PEROV 'HVFULSWLRQ 6\PEROV 'HVFULSWLRQ

  %DWWHU\FKDUJLQJLQGLFDWRU   'XVWDQGZDWHUUHVLVWDQFH

$WWHQWLRQFRQVXOWDFFRPSDQ\LQJ
 $&LQGLFDWRU
 GRFXPHQWV

7\SH&)'HILEULOODWRUSURRI &(PDUN
 

 (&*FRQQHFWRU 'LVSRVDOLQVWUXFWLRQV


7HPSHUDWXUHFRQQHFWRU  0DQXIDFWXUHU


 6S2FRQQHFWRU  'DWHRIPDQXIDFWXUH

 (W&2FRQQHFWRU  5HIHUHQFHQXPEHU

 1,%3FRQQHFWRU  6HULDOQXPEHU

(QYLURQPHQWDOVKLSSLQJVWRUDJH
 86%SRUW
DOWLWXGHOLPLWDWLRQV

(QYLURQPHQWDOVKLSSLQJVWRUDJH 
/$1SRUW
 KXPLGLW\OLPLWDWLRQV

(QYLURQPHQWDOVKLSSLQJVWRUDJH
 1XUVHFDOOV\PERO
WHPSHUDWXUHOLPLWDWLRQV


(TXLSRWHQWLDOWHUPLQDO )UDJLOHKDQGOHZLWKFDUH



$&SRZHULQSXWUDWLQJ 7KLVZD\XS
 

 '&SRZHULQSXWUDWLQJ .HHSGU\


 (8UHSUHVHQWDWLYH  


'LVSOD\V


 




 
 
 
 
 



 
 
 




                             

  7LWOHRIZDYHIRUPSDUDPHWHU   0DLQVFUHHQVHOHFWLFRQ 
 :DYHIRUP   %DWWHU\VWDWXVLFRQ 
  :DYHIRUPDUHD   7LPHGLVSOD\ 
  ,QIRUPDWLYHPHVVDJHDUHD   1XPHULFDODUHD 
  3DWLHQWPRGHLFRQ   7LWOHRIQXPHULFSDUDPHWHU 
 $ODUPOLPLWVPHQXLFRQ   1XPHULFYDOXH 
  6HWXSPHQXLFRQ  
    

)LJXUH'LVSOD\V





7DEOH'LVSOD\6\PEROV
6\PEROV 'HVFULSWLRQ 6\PEROV 'HVFULSWLRQ
(W&2LFRQ(QGWLGDOFDUERQ
 (&*ZDYHIRUPLFRQ 
GLR[LGHFRQFHQWUDWLRQ 
,Q&2LFRQ,QVSLUHGFDUERQ
 (&*OHDGSDLU 
GLR[LGHFRQFHQWUDWLRQ 

  (&*VL]HEDU  7HPSHUDWXUHLFRQ

 6S2ZDYHIRUPLFRQ  7HPSHUDWXUHXQLW&HOVLXV

,PSHGDQFHUHVSLUDWLRQ 7HPSHUDWXUHXQLW
 
ZDYHIRUPLFRQ )DKUHQKHLW

 (W&2LFRQ  $XGLEOH$ODUP$FWLYHLFRQ

 +535LFRQ XQLW  $XGLEOH$ODUPVLOHQFHLFRQ

 +5VRXUFHLFRQ(&*  $XGLEOH$ODUPVXVSHQGLFRQ

 35VRXUFHLFRQ6S2 $XGLEOH$ODUPLQKLELWLRQLFRQ


 35VRXUFHLFRQ1,%3 3DWLHQWPRGH$GXOW

 67OHYHOLFRQ  3DWLHQWPRGH3HGLDWULF

 $UUK\WKPLDLFRQ

3DWLHQWPRGH1HRQDWDO

1,%3LFRQ  6HWXSPHQXLFRQ
 
 1,%3RU(W&2XQLWPP+J $ODUPOLPLWVPHQXLFRQ

0DLQVFUHHQ%LJQXPEHU
  1,%3RU(W&2XQLWN3D  VFUHHQ

 6S2RU(W&2XQLW  0DLQVFUHHQFKZDYHVFUHHQ

 1,%3DXWRPRGH,QWHUYDO  %DWWHU\VWDWXVLFRQ

 1,%3HODSVHGWLPH '&SRZHULQSXWLFRQ

3XOVHDPSOLWXGHLQGLFDWRU  7LPHGLVSOD\


 5HVSLUDWLRQVRXUFH$: 1,%3JUDSKLFDOWUHQGLFRQ

5HVSLUDWLRQVRXUFH,0 


7DEOH'LVSOD\&RORUV
)XQFWLRQ &RORU
(&*:DYHIRUP *UHHQ
6S2:DYHIRUP  &\DQ
5HVSLUDWLRQ:DYHIRUP  <HOORZ
(W&2:DYHIRUP *UD\
(&* *UHHQ
1,%3 2UDQJH 
6S2 &\DQ
5HVSLUDWLRQ5DWH <HOORZ
(W&2 3XUSOH
7HPSHUDWXUH 'DUNEOXH
*HQHUDOEDFNJURXQG %ODFN
,QIRUPDWLYHPHVVDJH %ODFNEDFNJURXQG*UHHQIRQW
/RZSULRULW\DODUPPHVVDJH %ODFNEDFNJURXQG<HOORZIRQW
0HGLXPSULRULW\DODUPPHVVDJH %ODFNEDFNJURXQG<HOORZIRQW
+LJKSULRULW\DODUPPHVVDJH %ODFNEDFNJURXQG5HGIRQW
%DWWHU\VWDWXVLFRQ QRUPDO  *UHHQ 
%DWWHU\VWDWXVLFRQ ORZEDWWHU\  <HOORZRU5HG UHIHUWR7DEOH 











7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN




6(77,1*837+(021,725

:$51,1* 7R HQVXUH DFFXUDWH SHUIRUPDQFH DQG SUHYHQW GHYLFH IDLOXUH GR QRW
 H[SRVH WKH PRQLWRU WR H[WUHPH PRLVWXUH LQFOXGLQJ GLUHFW H[SRVXUH WR UDLQ 6XFK
H[SRVXUH PD\ FDXVH LQDFFXUDWH SHUIRUPDQFH RU GHYLFH IDLOXUH 5HIHU WR
6SHFLILFDWLRQVHFWLRQ
:$51,1* 7KH PRQLWRU VKRXOG QRW EH XVHG DGMDFHQW WR RU VWDFNHG ZLWK RWKHU
 HTXLSPHQW ,I DGMDFHQW RU VWDFNHG XVH LV QHFHVVDU\ WKH PRQLWRU VKRXOG EH
REVHUYHGWRYHULI\QRUPDORSHUDWLRQLQWKHFRQILJXUDWLRQLWLVWREHXVHG
:$51,1*0DNHVXUHWKDWWKHPRQLWRUVSHDNHULVQRWREVWUXFWHG)DLOXUHWRGRVR
 FRXOGUHVXOWLQDQLQDXGLEOHDODUPWRQH

&$87,21 5HFKDUJLQJ WKH EDWWHU\ LV VWURQJO\ UHFRPPHQGHG ZKHQ WKH EDWWHU\ KDV
QRWEHHQUHFKDUJHGIRURUPRUHPRQWKV

&$87,21 )ROORZ ORFDO JRYHUQPHQW RUGLQDQFHV DQG UHF\FOLQJ LQVWUXFWLRQV
UHJDUGLQJGLVSRVDORUUHF\FOLQJRIGHYLFHFRPSRQHQWVLQFOXGLQJEDWWHULHV


8QSDFNLQJDQG,QVSHFWLRQ

7KH PRQLWRU LV VKLSSHG LQ RQH FDUWRQ ([DPLQH WKH FDUWRQ FDUHIXOO\ IRU HYLGHQFH RI
GDPDJH&RQWDFW0HGLDQD7HFKQLFDO6XSSRUW5HSUHVHQWDWLYHLPPHGLDWHO\LIDQ\GDPDJH
LV GLVFRYHUHG 5HIHU WR WKH 0DLQWHQDQFH VHFWLRQ IRU LQVWUXFWLRQV RQ UHWXUQLQJ GDPDJHG
LWHPV

1RWH 5HIHU WR WKH 3HUIRUPDQFH 9HULILFDWLRQ VHFWLRQ LQ WKH VHUYLFH PDQXDO IRU GHWDLOHG
LQIRUPDWLRQ

6HWWKHPRQLWRUWRWKH XVHU¶VLQWHQGHGSRVLWLRQ ZKHUHWKHXVHUFDQHDVLO\UHFRJQL]HWKH
YLVXDODQGDXGLEOHPRQLWRULQJFRQGLWLRQV1RUPDOO\LWLVUHFRPPHQGHGWRVHWDWDGLVWDQFH
RIPIURPWKHXVHU$OVRWKHYLHZSRLQWLVDWDQ\SRLQWZLWKLQWKHEDVHRIDFRQHE\DQ
DQJOHRIƒWRWKHFHQWHURIWKHPRQLWRULQJGLVSOD\



/LVWRI&RPSRQHQWV

7KHIROORZLQJLWHPVDUHVWDQGDUGLQWKHSDFNDJH

7DEOH6WDQGDUG$FFHVVRULHV
,WHPV 4W\
0PRQLWRUȱ 
2SHUDWLRQPDQXDO (QJOLVK ȱ 
$&SRZHUFRUGȱ 
3ULQWHUSDSHU 
2QO\ZKHQ3ULQWHURSWLRQLVLQVWDOOHGȱ
&XII%ODGGHUVHWPHGLXP+(0&6 FP ȱ 
&XII%ODGGHUVHWPHGLXP+(0&5 FP ȱ 
&XIIKRVH1R P ȱ 
(&*WUXQNFDEOHIRUOHDGVȱ 
(&*OHDGVZLUHSDFN 61$3  
6S2UHXVDEOHVHQVRU<0 IRU0HGLDQDPRGXOH  
RU'6$ IRU1HOOFRUPRGXOH ȱ
6S2H[WHQVLRQFDEOH5&3 IRU0HGLDQDPRGXOH  
                  RU'2& IRU1HOOFRUPRGXOH 

2SWLRQDOLWHPVPD\EHRUGHUHGLIQHHGHG&RQWDFW\RXUORFDOVXSSOLHU 
IRUSULFLQJDQGRUGHULQJLQIRUPDWLRQ
7DEOH2SWLRQDO$FFHVVRULHV
,WHPV 4W\
&XII%ODGGHUVHWPHGLXP+(0&/ FP ȱ 
&XII%ODGGHUVHWPHGLXP+(0&; FP ȱ 
&XIIIRUQHRQDWDOȱ 
&XIIKRVH1R P ȱ 
(&*WUXQNFDEOHIRUOHDGV 
(&*OHDGVZLUHSDFN 61$3 ȱ 
(&*OHDGVZLUHSDFN *5$%  
(&*OHDGVZLUHSDFN *5$%  
6S2GLVSRVDEOHVHQVRU 
0DLQVWUHDP&2PRQLWRULQJUHXVDEOHDLUZD\DGDSWHU 
0DLQVWUHDP&2PRQLWRULQJGLVSRVDEOHDLUZD\DGDSWHU 
&DEOHKROGLQJFOLS 
0DLQVWUHDP&2VHQVRU 
6LGHVWUHDP&2PRQLWRULQJGLVSRVDEOHQDVDOFDQQXOD 
6LGHVWUHDP&2PRQLWRULQJGLVSRVDEOHQDVDOFDQQXODZLWK2GHOLYHU\ 
6LGHVWUHDP&2PRQLWRULQJGLVSRVDEOHRUDOQDVDOFDQQXOD 
6LGHVWUHDP&2PRQLWRULQJGLVSRVDEOHRUDOQDVDOFDQQXODZLWK2GHOLYHU\ 
6LGHVWUHDP&2PRQLWRULQJGLVSRVDEOHDGDSWHUVDPSOLQJOLQH 
6LGHVWUHDP&2PRQLWRULQJGLVSRVDEOHDGDSWHUVDPSOLQJOLQHZLWK1DILRQ 
6LGHVWUHDP&26HQVRU 
6HUYLFHPDQXDO (QJOLVK ȱ 
/LLRQEDWWHU\ KRXUW\SH ȱ 
/LLRQEDWWHU\ KRXUVW\SH ȱ 
/LLRQEDWWHU\ KRXUVW\SH ȱ 
'&LQSXWFDEOHȱ 


3RZHU&DEOH&RQQHFWLRQV

:$51,1* 'R QRW FRQQHFW WR DQ HOHFWULFDO RXWOHW FRQWUROOHG E\ D ZDOO VZLWFK
 EHFDXVHWKHGHYLFHPD\EHDFFLGHQWDOO\WXUQHGRII

&$87,21,IWKHLQWHJULW\RIWKH$&SRZHUVRXUFHLVLQGRXEWWKHPRQLWRUPXVWEH
RSHUDWHGIURPLWVLQWHUQDOEDWWHU\

$&3RZHU
0DNHVXUHWKDWWKH$&RXWOHWLVSURSHUO\JURXQGHGDQGVXSSOLHVWKHVSHFLILHGYROWDJHDQG
IUHTXHQF\ 9a+] 



)LJXUH$&3RZHU&RQQHFWLRQ

&RQQHFW WKH IHPDOH FRQQHFWRU HQG RI WKH $& SRZHU FRUG WR PDLQV FRQQHFWRU RQ WKH
PRQLWRU¶VUHDUSDQHO
3OXJ WKH PDOH FRQQHFWRU HQG RI WKH $& SRZHU FRUG LQWR D SURSHUO\ JURXQGHG PDLQV
RXWOHW
,I QHFHVVDU\ FRQQHFW JURXQGLQJ ZLUH &RQQHFW WKH JURXQGLQJ ZLUH FRQQHFWRU WR WKH
HTXLSRWHQWLDOWHUPLQDORQWKHUHDUSDQHO1RZDWWDFKWKHFOLSHQGRIWKHJURXQGLQJZLUH
WRWKHPHGLFDOHTXLSPHQWJURXQGLQJWHUPLQDORQWKHZDOO
9HULI\WKDWWKH%DWWHU\&KDUJLQJ,QGLFDWRURQWKHPRQLWRU¶VIURQWSDQHOLVOLW

1RWH(YHQLIWKHPRQLWRULVQRWWXUQHGRQWKH%DWWHU\&KDUJLQJ,QGLFDWRULVOLWZKHQWKH
$&SRZHUFRUGLVFRQQHFWHGLQWRDPDLQVRXWOHW

1RWH,IWKH%DWWHU\&KDUJLQJ,QGLFDWRULVQRWOLWFKHFN

z WKHSRZHUFRUG
z WKH$&SRZHULQOHW
z WKHSRZHUPDLQVRXWOHW
z 1R%DWWHU\

,I WKH %DWWHU\ &KDUJLQJ ,QGLFDWRU VWLOO LV QRW OLW DOWKRXJK QR SUREOHP LV IRXQG
FRQWDFWTXDOLILHGVHUYLFHSHUVRQQHORU\RXUORFDOVXSSOLHUIRUDVVLVWDQFH



'&3RZHU
7KH H[WHUQDO '& SRZHU VRXUFH FDQ EH XVHG ZKHQ WKH 0 LV XVHG IRU WKH HPHUJHQF\
FRQGLWLRQLQWKHPRYLQJFDU

 &RQQHFW DQ H[WHUQDO '& SRZHU VRXUFH  WR  YROWV '&  WR PRQLWRU UHDU SDQHO
FRQQHFWHULGHQWLILHGZLWKWKH'&SRZHUV\PERO
9HULI\WKDWWKH'&SRZHULQSXWLFRQDSSHDUVRQWKHVFUHHQ

0HDVXUHPHQW&DEOH&RQQHFWLRQV

:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH RQO\
 DFFHVVRULHVVXSSOLHGRUUHFRPPHQGHGE\0HGLDQD8VHDFFHVVRULHVDFFRUGLQJWR
WKH PDQXIDFWXUHU¶V GLUHFWLRQV IRU XVH DQG \RXU IDFLOLW\¶V VWDQGDUGV 8VH RQO\
DFFHVVRULHV WKDW KDYH SDVVHG WKH UHFRPPHQGHG ELRFRPSDWLELOLW\ WHVWLQJ LQ
FRPSOLDQFHZLWK,62 

1RWH %RWK IUHTXHQW FKHFNV E\ WKH RSHUDWRU RQ D GDLO\ EDVLV DQG PRUH FRPSUHKHQVLYH
WHFKQLFDOFKHFNVOHVVIUHTXHQWO\DUHFRYHUHGE\WKLVUHTXLUHPHQWLQRUGHUWRGHWHFW
PHFKDQLFDOGDPDJHDQGGDPDJHWRFDEOHVHWF

(&*&DEOHVDQG/HDGV

&RQQHFWDQ(&*FDEOHWRWKH³(&*´FRQQHFWRUPDNLQJVXUHWKDWWKHFRQQHFWRUDUURZLV
SRLQWLQJSDQHO VHH)LJXUH 
$WWDFKWKH(&*OHDGZLUHWRWKHHQGRIWKHFDEOH

1,%3+RVHVDQG&XIIV

6HOHFWDQDSSURSULDWHVL]HFXIIIRUWKHSDWLHQW 5HIHUWRWKH1,%30RQLWRULQJVHFWLRQ 
&RQQHFWWKHKRVHWRWKH³1,%3´FRQQHFWRUPDNLQJVXUHWRWLJKWHQWKHFRQQHFWRULQWKH
FORFNZLVHGLUHFWLRQ VHH)LJXUH 
$WWDFKWKHFXIIWRWKHHQGRIWKHKRVH

6S2&DEOHVDQG6HQVRUV

6HOHFWDQDSSURSULDWHVHQVRUIRUWKHSDWLHQWDQGGHVLUHGDSSOLFDWLRQ 5HIHUWRWKH6S2
0RQLWRULQJVHFWLRQ 
&RQQHFWWKHH[WHQVLRQFDEOHWRWKH³6S2´FRQQHFWRURQWKHPRQLWRU¶VULJKWSDQHO 
VHH)LJXUH 
$WWDFKWKHVHQVRUWRWKHHQGRIWKHFDEOH

7HPSHUDWXUH3UREHV

6HOHFWWKHDSSURSULDWHSUREH V IRUWKHGHVLUHGDSSOLFDWLRQ <6,DQG6HULHV 
&RQQHFW WKH WHPSHUDWXUH SUREHV WR WKH 7HPSHUDWXUH FRQQHFWRU RQ WKH PRQLWRU¶V ULJKW
SDQHO VHH)LJXUH 

&26DPSOLQJVHW ,IFRQILJXUHGZLWK&2RSWLRQ 

6HOHFW WKH DSSURSULDWH &2 VHQVRU 0DLQVWUHDP RU 6LGHVWUHDP  IRU WKH GHVLUHG
DSSOLFDWLRQ
&RQQHFWWKH&2VHQVRUWRWKH&2FRQQHFWRURQWKHPRQLWRU¶VULJKWSDQHO VHH)LJXUH
 
$WWDFK WKH &2 VDPSOLQJ XQLW WR WKH &2 VHQVRU¶V FRQQHFWRU 5HIHU WR WKH
&DSQRJUDSK\0RQLWRULQJVHFWLRQ 


%$77(5<23(5$7,21

&$87,21 5HFKDUJLQJ WKH EDWWHU\ LV VWURQJO\ UHFRPPHQGHG ZKHQ LW KDV QRW EHHQ
IXOO\UHFKDUJHGIRURUPRUHPRQWKV

&$87,21 :KHQ WKH YROWDJH RI WKH EDWWHU\ LV YHU\ ORZ LW LV D SRVVLELOLW\ RI QRW
RSHUDWLQJ

1RWH,WLVUHFRPPHQGHGWKDWWKHPRQLWRUUHPDLQFRQQHFWHGWR$&SRZHUVRXUFHZKHQQRW
LQXVH7KLVZLOOHQVXUHDIXOO\FKDUJHGEDWWHU\ZKHQHYHULWLVQHHGHG

1RWH $V WKH EDWWHU\ LV XVHG DQG UHFKDUJHG RYHU D SHULRG RI WLPH WKH DPRXQW RI WLPH
EHWZHHQWKHRQVHWRIWKHORZEDWWHU\DODUPDQGWKHLQVWUXPHQWVKXWRIIPD\EHFRPH
VKRUWHU,WLVUHFRPPHQGHGIRUVHUYLFHSHUVRQQHOWRFKHFNSHULRGLFDOO\RUUHSODFHWKH
LQWHUQDOEDWWHU\LIQHFHVVDU\

2SHUDWLQJWKH0RQLWRURQ%DWWHU\3RZHU

7KH PRQLWRU KDV DQ LQWHUQDO EDWWHU\ WKDW FDQ EH XVHG WR SRZHU WKH PRQLWRU ZKHQ $&
SRZHUVRXUFHLVQRWDYDLODEOH7KHEDWWHU\VWDWXVLFRQDSSHDUVRQWKHVFUHHQZKHQWKH
PRQLWRULVRQEDWWHU\SRZHU

)LJXUH%DWWHU\3ODFHPHQW

7XUQRIIWKHPRQLWRU
5HPRYHWKHEDWWHU\FRYHU
,QVHUWWKHEDWWHU\LQWRWKHPDLQXQLWFDUHIXOO\

7DEOH)URQW3DQHO,QGLFDWLRQVIRU3RZHU6RXUFH
3RZHU&RQQHFWLRQV )URQW3DQHO,QGLFDWLRQV
%DWWHU\VWDWXVLFRQGLVDSSHDUVRQWKHVFUHHQ
$&VRXUFH
$&LQGLFDWRULVOLW
'&VRXUFH '&SRZHULQSXWLFRQDSSHDUVRQWKHVFUHHQ
%DWWHU\ %DWWHU\VWDWXVLFRQDSSHDUVRQWKHVFUHHQ

7KHPRQLWRUFDQQRWRSHUDWHZLWKDIXOO\GLVFKDUJHGEDWWHU\%HIRUHWXUQLQJRQWKHPRQLWRU
ZLWK D EDWWHU\ WKDW KDV EHHQ FRPSOHWHO\ GLVFKDUJHG ILUVW SOXJ WKH PRQLWRU LQWR DQ $&
RXWOHW WR FKDUJH WKH EDWWHU\ IRU D PLQLPXP RI  PLQXWHV 7KH PRQLWRU PD\ WKHQ EH
SRZHUHGRQ


$QHZIXOO\FKDUJHGRSWLRQDOEDWWHU\ZLOOSURYLGHRUKRXU V PRQLWRULQJRSHUDWLRQ
XQGHUWKHIROORZLQJFRQGLWLRQV

z 2SHUDWLRQRI(&*5HVSLUDWLRQ6S2DQG7HPSHUDWXUH
z 1,%3DXWRPDWLFPHDVXUHPHQWSHUPLQXWHV
z 1RDXGLEOHDODUPFRQGLWLRQ
z 1RH[WHUQDOFRPPXQLFDWLRQRSHUDWLQJ
z 1RSULQWLQJ
z $PELHQWWHPSHUDWXUHDWƒ&

1RWH7KUHHW\SHVRIEDWWHU\DUHDYDLODEOHDVWKHRSWLRQDOLWHPV


%DWWHU\6WDWXV,QGLFDWLRQ

:KHQ RSHUDWLQJ RQ EDWWHULHV WKH EDWWHU\ VWDWXV LFRQ LQ WKH ORZHU SDUW RI WKH GLVSOD\
LQGLFDWHVWKHEDWWHU\FKDUJHFRQGLWLRQ6HH7DEOH

7DEOH7KH0RQLWRU%DWWHU\6WDWXV,FRQ
%DWWHU\6WDWXV,FRQV %DWWHU\6WDWXV,FRQ&RORU

 *UHHQ IXOOFKDUJHG 

 *UHHQ XVHG 

 <HOORZ ”PLQXWHV 

 5HG ”PLQXWHV 

$ ORZ SULRULW\ DODUP RFFXUV ZKHQ WKH UHPDLQLQJ EDWWHU\ SRZHU LV RQO\ HQRXJK IRU 
PLQXWHVRIRSHUDWLRQ7KHDODUPPHVVDJHµ/RZ%DWWHU\¶DSSHDUVRQWKHVFUHHQDQGWKH
YLVXDODODUPLQGLFDWRULVOLWZLWK\HOORZ

7KLVDODUPFDQQRWEHVLOHQFHGZKLOHUXQQLQJRQEDWWHU\SRZHU&RQQHFWLQJWKHPRQLWRUWR
$&SRZHUZLOOVLOHQFHWKHDODUP

$KLJKSULRULW\DODUPRFFXUVIRUDERXWPLQXWHVEHIRUHWKHPRQLWRUVKXWVRII7KHDODUP
PHVVDJH µ&ULWLFDOO\ /RZ%DWWHU\ &RQGLWLRQ¶ ZLOO DSSHDU DQG WKH YLVXDO DODUP LQGLFDWRU
ZLOO IODVK ZLWK UHG $IWHU WKDW WKH PRQLWRU ZLOO DXWRPDWLFDOO\ VKXW GRZQ &RQQHFW WKH
PRQLWRUWRDQ$&SRZHUVRXUFHWRDYRLGDQ\ORVVRIWUHQGGDWDRUVHWWLQJV

&KDUJLQJD/RZ%DWWHU\

&RQQHFWWKHPRQLWRUWR$&SRZHUVRXUFHWRFKDUJHDORZRUGHSOHWHGEDWWHU\ 
VHHWKH6HWWLQJXSWKH0RQLWRUVHFWLRQ 
9HULI\WKDWWKH%DWWHU\&KDUJLQJ,QGLFDWRULVOLWZLWKRUDQJH
7DEOH)URQW3DQHO,QGLFDWLRQVIRU%DWWHU\6WDWXV 
%DWWHU\VWDWXV %DWWHU\FKDUJLQJLQGLFDWRU
)XOOFKDUJHG  *UHHQ
&KDUJLQJ 2UDQJH
1RWLQVWDOOHG 2))

1RWH (YHQ LI WKH PRQLWRU LV WXUQHG RII WKH %DWWHU\ &KDUJLQJ ,QGLFDWRU LV OLW ZKLOH WKH
EDWWHU\LVUHFKDUJHG

1RWH$IXOOFKDUJHRIDGHSOHWHGEDWWHU\WDNHVRYHURUKRXUVSHUEDWWHU\


86,1*7+(021,725

:$51,1*,IWKH3RZHU2Q6HOI7HVWLVQRWFRPSOHWHGVXFFHVVIXOO\GRQRWWU\WR
 XVHWKHPRQLWRU
:$51,1* (DFK WLPH WKH PRQLWRU LV XVHG FKHFN DODUP OLPLWV WR PDNH VXUH WKDW
 WKH\DUHDSSURSULDWHIRUWKHSDWLHQWEHLQJPRQLWRUHG 
:$51,1*,IGLIIHUHQWDODUPSUHVHWV DUHXVHGIRUWKHVDPHRU VLPLODUHTXLSPHQW
 LQ DQ\ VLQJOH DUHD HJ DQ LQWHQVLYH FDUH XQLW RU FDUGLDF RSHUDWLQJ URRP D
SRWHQWLDOKD]DUGFDQH[LVW
:$51,1* .HHS SDWLHQWV XQGHU FORVH VXUYHLOODQFH ZKHQ PRQLWRULQJ ,W LV
 SRVVLEOH DOWKRXJK XQOLNHO\ WKDW UDGLDWHG HOHFWURPDJQHWLF VLJQDOV IURP VRXUFHV
H[WHUQDO WR WKH SDWLHQW DQG WKH PRQLWRU FDQ FDXVH LQDFFXUDWH PHDVXUHPHQW
UHDGLQJV'RQRWUHO\HQWLUHO\RQWKHPRQLWRUUHDGLQJVIRUSDWLHQWDVVHVVPHQW

7XUQLQJ2QWKH0RQLWRU

%HIRUHXVLQJWKHPRQLWRUFRQILUPWKDWWKHPRQLWRULVZRUNLQJSURSHUO\DQGLVVDIHWRXVH
DVGHVFULEHGEHORZ

&$87,21 :KHQ SRZHU LV DSSOLHG WKH PRQLWRU DXWRPDWLFDOO\ VWDUWV WKH 3RZHU2Q
6HOI7HVW 3267  ZKLFK WHVWV WKH PRQLWRU FLUFXLWU\ DQG IXQFWLRQV 'XULQJ 3267
FRQILUP WKDW WKH PRQLWRU VFUHHQ WXUQV RQ ,I WKH PRQLWRU VFUHHQ GRHV QRW IXQFWLRQ
SURSHUO\ GR QRW XVH WKH PRQLWRU ,QVWHDG FRQWDFW TXDOLILHG VHUYLFH SHUVRQQHO RU
\RXUORFDOVXSSOLHU

1RWH 7KH SRVW SDVV WRQH VRXQGV ZKHQ WKH PRQLWRU FRPSOHWHV WKH 3RZHU2Q 6HOI7HVW
3267  7KLV IXQFWLRQV DV DQ DXGLEOH FRQILUPDWLRQ WKDW WKH VSHDNHU LV SHUIRUPLQJ
SURSHUO\ ,I WKH VSHDNHU GRHV QRW IXQFWLRQ WKH DODUP ZDUQLQJ VRXQGV FDQQRW EH
KHDUG

1RWH,IXQXVDEOHVRXQGOLNHEX]]HUFDQEHKHDUGGRQRWXVHWKHPRQLWRU,QVWHDGSOHDVH
FRQWDFWTXDOLILHGVHUYLFHSHUVRQQHORU\RXUORFDOVXSSOLHU

7XUQRQWKHPRQLWRUE\SUHVVLQJWKH3RZHU%XWWRQ
7KH PRQLWRU SHUIRUPV 3267 DQG WKH FKHFNVXP 7KH EDU VKDOO EH GLVSOD\HG RQ WKH
ERWWRP RI WKH VFUHHQ WR LQGLFDWH WKH SURJUHVV UDWH RI FKHFNVXP IRU V\VWHP VRIWZDUH
7KH LQLWLDOL]LQJ VFUHHQ DSSHDUV GXULQJ 3267 7KH LQLWLDOL]LQJ VFUHHQ GLVSOD\V WKH
FRPSDQ\ORJRWKHYHUVLRQRIV\VWHPDQGWKHFXUUHQWWLPH
,IWKHUHLVQRHUURUDODUPLQGLFDWRULVOLWGXULQJ3267DQGWKH3267SDVVWRQHVRXQGV
DIWHU3267LVFRPSOHWHG&RQILUPWKDWDODUPLQGLFDWRULVOLWGXULQJ3267DQGWKHQRUPDO
VFUHHQDSSHDUVDIWHUWKH3267SDVVWRQHVRXQGV



)LJXUH,QLWLDO6FUHHQ

1RWH7KHV\VWHPYHUVLRQVKRZQDERYHLVRQO\DQH[DPSOH

$IWHU SRZHUXS GLDJQRVWLFV DUH VXFFHVVIXOO\ FRPSOHWHG WKH PRQLWRU LV UHDG\ IRU
RSHUDWLRQ

1RWH,IWKHPRQLWRUGHWHFWVDQLQWHUQDOSUREOHPGXULQJ3267WKHPRQLWRUZLOOGLVSOD\DQ
HUURU FRGH DQG ZLOO QRW GLVSOD\ WKH PRQLWRULQJ VFUHHQ ,I DQ HUURU FRGH LV GLVSOD\HG
GXULQJ 3267 FRQWDFW TXDOLILHG VHUYLFH SHUVRQQHO RU \RXU ORFDO VXSSOLHU IRU
DVVLVWDQFH



6HWWLQJ'DWHDQG7LPH

<RXPD\VHWWKHGDWHDQGWLPHGLVSOD\HGRQWKHVFUHHQDQGSULQWHGRQWKHUHSRUWV
5RWDWH WKH MRJ GLDO WR KLJKOLJKW 7LPH 'LVSOD\ DQG WKHQ SUHVV WKH MRJ GLDO WR VHOHFW
'DWH7LPH0HQX
5RWDWHWKHMRJGLDOWRGLVSOD\WKHGHVLUHGQXPEHUIRU\HDUPRQWKGD\KRXUPLQXWHRU
VHFRQGDQGWKHQSUHVVWKHMRJGLDOWRVHOHFWWKHGHVLUHGQXPEHU

1RWH7KHWLPHIRUPDWLVKRXUVRQO\

7DEOH'DWH7LPH0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
'$7(7,0(0(18
6HW'DWH <HDU
 0RQWK
 'D\
 5HWXUQ
6HW7LPH +RXU
 0LQXWH
 6HFRQG
 5HWXUQ
'DWH)RUPDW PPGG\\
 GGPP\\
 \\PPGG
 5HWXUQ



6HWWLQJ%DVLF6HWXS3DUDPHWHUV

7KLVSURFHGXUHZLOODOORZ\RXWRVHW3DWLHQW0RGH7UHQG&OHDU$ODUP9ROXPH.H\%HHS
9ROXPH4569ROXPH6HUYLFH0HQX

5RWDWH WKH MRJ GLDO WR KLJKOLJKW WKH 6HWXS 0HQX ,FRQ 3UHVV WKH MRJ GLDO WR GLVSOD\ WKH
VHWXSPHQX

   )LJXUH6HWXS0HQX

7DEOH6HWXS0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
6(7830(18
3DWLHQW0RGH $GXOW3HGLDWULF1HRQDWDO
7UHQG&OHDU <HV1R
3ULQW6SHHG  PPV
3ULQW0RGH  2QH6KRW&RQWLQXRXV
$ODUP9ROXPH 
.H\%HHS9ROXPH 2II
4569ROXPH 2II
6HUYLFH0HQX 3DVVFRGH 
5HWXUQ 

1RWH,IWKHUHLVQRDFWLYLW\IRUVHFRQGVWKHPRQLWRUZLOOUHWXUQWRPDLQVFUHHQ

1RWH 7KH PHQX RSWLRQV IROORZHG E\ DQ DVWHULVN  DUH RQO\ GLVSOD\HG ZLWK DV RSWLRQDO
SULQWHULQVWDOOHG

3DWLHQW0RGH
7RVHOHFW3DWLHQW0RGHURWDWHWKHMRJGLDOWRKLJKOLJKW3DWLHQW0RGHDQGWKHQSUHVVWKH
MRJGLDOWRVHOHFWDQDSSURSULDWHPRGH$GXOW3HGLDWULFRU1HRQDWDO

7UHQG&OHDU
,I\RXZDQWWRUHPRYHWUHQGGDWDLQWKHWUHQGPHPRU\VHW7UHQG&OHDUWR<HV



6HWWLQJ3ULQW
,IDQRSWLRQDOSULQWHULVLQVWDOOHGWKLVPHQXZLOODOORZ\RXLWVHW3ULQW6SHHG3ULQW0RGH
5HIHUWRWKH3ULQWLQJVHFWLRQIRUGHWDLOV

6HWWLQJ9ROXPH
6HWWLQJ 9ROXPH DOORZV \RX WR DGMXVW WKH DXGLEOH $ODUP 9ROXPH 456 YROXPH DQG .H\
EHHSYROXPH$ODUP9ROXPHFDQEHVHWWROHYHOWRDQG4569ROXPHDQG.H\%HHS
9ROXPHFDQEHVHWWROHYHOWRRU2II VHH$ODUPVDQG/LPLWVVHFWLRQ 
5RWDWHWKHMRJGLDOWRKLJKOLJKW$ODUP9ROXPH4569ROXPHRU.H\%HHS9ROXPH
3UHVVWKHMRJGLDO /HYHOV RI$ODUP 9ROXPH4569ROXPHRU.H\%HHS9ROXPHZLOO
DSSHDU
5RWDWHWKHMRJGLDOWRVHOHFWDYROXPHOHYHO VHHHDFKYROXPHOHYHOLQWKH7DEOH 
3UHVVWKHMRJGLDOWRHQWHUWKHGHVLUHGYROXPHLQWRWKHPRQLWRU

6HUYLFH0HQX
7KLV PHQX LQFOXGHV 6DYH &XUUHQW 9DOXHV DV 3RZHU2Q 'HIDXOW 6DYH )DFWRU\ 'HIDXOW
6HWWLQJ DV 3RZHU2Q 'HIDXOW $ODUP 6XVSHQVLRQ 3HULRG $ODUP 6LOHQFH 3HULRG $ODUP
5HPLQGHU 7RQH $XGLEOH $ODUP 7\SH /DQJXDJH 1,%3 7HVW 6\VWHP ,QIRUPDWLRQ 2QO\
DXWKRUL]HG SHUVRQQHO LV DOORZHG WR FKDQJH WKH 6HUYLFH 0HQX VHWWLQJV $ SDVV FRGH LV
UHTXLUHGIRUDFFHVV5HIHUWRWKHVHUYLFHPDQXDOIRULQVWUXFWLRQV



6HWWLQJWKH0DLQ6FUHHQ

<RX PD\ VHOHFW WKH PDLQ VFUHHQ WR EH GLVSOD\HG FK :DYH 6FUHHQ RU %LJ 1XPEHU
6FUHHQ

5RWDWHWKHMRJGLDOWRKLJKOLJKWWKH%LJ1XPEHU6FUHHQ,FRQDQGWKHQSUHVVWKHMRJ
GLDOWRGLVSOD\WKH%LJ1XPEHU6FUHHQ
 7R UHWXUQ WKH FK :DYH 6FUHHQ URWDWH WKH MRJ GLDO WR KLJKOLJKW WKH FK :DYH
6FUHHQ,FRQDQGWKHQSUHVVWKHMRJGLDOWRGLVSOD\WKHFK:DYH6FUHHQ

9 FK:DYH6FUHHQ(&*6S2(W&2

)LJXUHFK:DYH6FUHHQ
9 %LJ1XPEHU6FUHHQ

)LJXUH%LJ1XPEHU6FUHHQ




$/$506$1'/,0,76

:$51,1* (DFK WLPH WKH PRQLWRU LV XVHG FKHFN DODUP OLPLWV WR PDNH VXUH WKDW
 WKH\DUHDSSURSULDWHIRUWKHSDWLHQWEHLQJPRQLWRUHG
:$51,1*,IGLIIHUHQWDODUPSUHVHWVDUHXVHGIRUWKHVDPHRUVLPLODUHTXLSPHQWLQ
 DQ\VLQJOHDUHDHJDQLQWHQVLYHFDUHXQLWRUFDUGLDFRSHUDWLQJ URRPDSRWHQWLDO
KD]DUGFDQH[LVW

*HQHUDO
:KHQWKHPRQLWRUGHWHFWVFHUWDLQFRQGLWLRQVWKDWUHTXLUHXVHUDWWHQWLRQWKHPRQLWRUHQWHUV
DQDODUPVWDWH7KHPRQLWRUUHVSRQVHLVLQGLFDWHGE\

z 9LVXDODODUPLQGLFDWLRQ
z $XGLEOHDODUPLQGLFDWLRQ
z 3K\VLRORJLFDODODUPVLQFOXGLQJLGHQWLILFDWLRQRIRXWRIOLPLWYLWDOVLJQV
z 7HFKQLFDODODUPV

1RWH 7KH DXGLEOH DQG YLVXDO DODUPV RQ WKH PRQLWRU XVHG LQ FRQMXQFWLRQ ZLWK FOLQLFDO
VLJQVDQGV\PSWRPVDUHWKHSULPDU\VRXUFHIRUQRWLI\LQJPHGLFDOSHUVRQQHOWKDW
DSDWLHQWDODUPFRQGLWLRQH[LVWV

&KDQJLQJ$ODUP9ROXPH
<RXFDQVHOHFWDQDODUPYROXPHOHYHORIWR5HIHUWRWKH8VLQJWKH0RQLWRUVHFWLRQ
VHH)LJXUH7DEOH 


$ODUP3ULRULW\DQG0HVVDJHV

7KHUHDUHWKUHHSRVVLEOHSULRULWLHVIRUYLVXDODQGDXGLEOHDODUPV+LJK0HGLXPDQG/RZ
7KH KLJK PHGLXP DQG ORZ SULRULW\ PHVVDJHV DUH GLVSOD\HG LQ WKH DODUPPHVVDJH DUHD
DQGWKHLQIRUPDWLYHPHVVDJHVDUHGLVSOD\HGLQWKHLQIRUPDWLYHPHVVDJHDUHD$PHVVDJH
LVGLVSOD\HGDOWHUQDWLYHO\HYHU\VHFRQGVZKHQWKHPRQLWRULVLQPXOWLSOHDODUPFRQGLWLRQV
5HIHUWRWKH7URXEOHVKRRWLQJVHFWLRQIRUWKHUHFRPPHQGHGDFWLRQV

+LJK3ULRULW\
7DEOH+LJK3ULRULW\$ODUP
&RQGLWLRQ 0HVVDJHV
$V\VWROH $V\VWROH
9),% 9),%
/RVVRI3XOVHIURP6S2 6S2/RVVRI3XOVH
QRYDOLG(&*DQGQRPRWLRQDUWLIDFW
&ULWLFDOO\/RZ%DWWHU\FRQGLWLRQ &ULWLFDOO\/RZ%DWWHU\FRQGLWLRQ
$31($ (W&2±$31($

0HGLXP3ULRULW\
7DEOH0HGLXP3ULRULW\$ODUP
7HFKQLFDO$ODUP0HVVDJH
3DUDPHWHU &RQGLWLRQ 0HVVDJHV
+LJK+HDUW5DWH3XOVH5DWHOLPLWV +LJK+HDUW5DWH3XOVH5DWHOLPLWVYLRODWHG
YLRODWHG
/RZ+HDUW5DWH3XOVH5DWHOLPLWV /RZ+HDUW5DWH3XOVH5DWHOLPLWVYLRODWHG
+535 YLRODWHG
+LJK67OHYHOOLPLWVYLRODWHG +LJK67OHYHOOLPLWVYLRODWHG
/RZ67OHYHOOLPLWVYLRODWHG /RZ67OHYHOOLPLWVYLRODWHG
$UUK\WKPLDOLPLWYLRODWHG $UUK\WKPLDOLPLWYLRODWHG
(&* (&*6LJQDO6DWXUDWLRQ (&*6LJQDO6DWXUDWLRQ
+LJK6S2OLPLWVYLRODWHG +LJK6S2OLPLWVYLRODWHG
6S2
/RZ6S2OLPLWVYLRODWHG /RZ6S2OLPLWVYLRODWHG
+LJK6\VWROLFEORRGSUHVVXUHOLPLWV 1,%3+LJK6\VWROLFEORRGSUHVVXUHOLPLWV
YLRODWHG YLRODWHG
+LJK'LDVWROLFEORRGSUHVVXUHOLPLWV 1,%3+LJK'LDVWROLFEORRGSUHVVXUHOLPLWV
YLRODWHG YLRODWHG
+LJK0$3EORRGSUHVVXUHOLPLWV 1,%3+LJK0$3EORRGSUHVVXUHOLPLWV
YLRODWHG YLRODWHG
1,%3
/RZ6\VWROLFEORRGSUHVVXUHOLPLWV 1,%3/RZ6\VWROLFEORRGSUHVVXUHOLPLWV
YLRODWHG YLRODWHG
/RZ'LDVWROLFEORRGSUHVVXUHOLPLWV 1,%3/RZ'LDVWROLFEORRGSUHVVXUHOLPLWV
YLRODWHG YLRODWHG
/RZ0$3EORRGSUHVVXUHOLPLWV 1,%3/RZ0$3EORRGSUHVVXUHOLPLWV
YLRODWHG YLRODWHG
+LJK5HVSLUDWLRQ5DWHOLPLWVYLRODWHG +LJK5HVSLUDWLRQ5DWHOLPLWVYLRODWHG
5HVS /RZ5HVSLUDWLRQ5DWHOLPLWVYLRODWHG /RZ5HVSLUDWLRQ5DWHOLPLWVYLRODWHG
/RVVRI5HVSLUDWLRQ6LJQDO /RVVRI5HVSLUDWLRQ6LJQDO
+LJK(W&2OLPLWVYLRODWHG (W&2+LJKOLPLWVYLRODWHG
/RZ(W&2OLPLWVYLRODWHG (W&2/RZOLPLWVYLRODWHG
(W&2
+LJK,Q&2OLPLWVYLRODWHG ,Q&2+LJKOLPLWVYLRODWHG
/RZ,Q&2OLPLWVYLRODWHG ,Q&2/RZOLPLWVYLRODWHG
+LJK7HPSHUDWXUHOLPLWVYLRODWHG +LJK7HPSHUDWXUHOLPLWVYLRODWHG
7HPS
/RZ7HPSHUDWXUHOLPLWVYLRODWHG /RZ7HPSHUDWXUHOLPLWVYLRODWHG


/RZ3ULRULW\
7DEOH/RZ3ULRULW\$ODUP
7HFKQLFDO$ODUP0HVVDJH
3DUDPHWHU &RQGLWLRQ 0HVVDJHV
(&*/HDGV2II  (&*/HDGV2II
(&*
&KHVW/HDGRII &KHVW/HDG2II
7HPSHUDWXUH3UREH'LVFRQQHFW 7HPSHUDWXUH3UREH'LVFRQQHFW
7HPS
7HPSHUDWXUH±2XWRIUDQJH 7HPSHUDWXUH±2XWRIUDQJH
1,%3±$EQRUPDO&XII 1,%3±$EQRUPDO&XII(((
1,%3±$EQRUPDO&XII 1,%3±$EQRUPDO&XII(((
1,%3±0HDVXUHPHQW)DLO 1,%3±0HDVXUHPHQW)DLO(((
1,%3±0HDVXUHPHQW)DLO 1,%3±0HDVXUHPHQW)DLO(((
1,%3±0HDVXUHPHQW)DLO 1,%3±0HDVXUHPHQW)DLO(((
1,%3 1,%3±0HDVXUHPHQW)DLO 1,%3±0HDVXUHPHQW)DLO(((
1,%3±0HDVXUHPHQW)DLO 1,%3±0HDVXUHPHQW)DLO(((
1,%3±2YHUSUHVVXUH 1,%3±2YHUSUHVVXUH(((
1,%3±$UWLIDFW 1,%3±$UWLIDFW(((
1,%3±$UWLIDFW 1,%3±$UWLIDFW(((
1,%37LPH2XW 1,%3±7LPH2XW(((
6S2±7HFKQLFDO(UURU0HVVDJHV 6S2(UURU(((
1RWH7KLVPHVVDJHLVIRU1HOOFRU a6S2(UURU(((
PRGXOHRQO\ 6S20RGXOH5HVHW
5HFRQQHFW5HSODFH6S2VHQVRU
5HSRVLWLRQ5HSODFH6S2VHQVRU
6S2
5HSODFH6S2VHQVRU
/RVVRI3XOVHIURP6S2 /RVVRI3XOVHIURP6S2
ZLWKYDOLG(&*RUZLWKPRWLRQDUWLIDFW
6S2&DEOH6HQVRU'LVFRQQHFW 6S2&DEOH6HQVRU'LVFRQQHFW
6HQVRU2IIIURP6S26HQVRU 6S26HQVRU2II
5HVS 5HVSLUDWLRQ/HDGV2II 5HVSLUDWLRQ/HDGV2II
&2±$GDSWHU&DOLEUDWLRQ)DLOHG &2±$GDSWHU&DOLEUDWLRQ)DLOHG
&2±&KHFN$GDSWHU &2±&KHFN$GDSWHU
&2±)DXOW\6HQVRU &2±)DXOW\6HQVRU
(W&2 &2±2FFOXVLRQRUOHDN &2±2FFOXVLRQRUOHDN
&2±2XWRI5DQJH &2±2XWRI5DQJH
&2±6DPSOH/LQH'LVFRQQHFWHG &2±6DPSOH/LQH'LVFRQQHFWHG
&2±6HQVRU'LVFRQQHFWHG &2±6HQVRU'LVFRQQHFWHG
3ULQWHU2XWRI3DSHU 3ULQWHU2XWRI3DSHU
6\VWHP /RZ%DWWHU\ /RZ%DWWHU\
7HFKQLFDO6\VWHP(UURU (((a



,QIRUPDWLYH0HVVDJHV

,QIRUPDWLYHPHVVDJHVLQGLFDWHDV\VWHPFRQGLWLRQWKDWQHHGVWREHFRUUHFWHG

7DEOH,QIRUPDWLYH0HVVDJHV
3DUDPHWHU &RQGLWLRQ 0HVVDJHV
6S26HQVRU$GMXVW&RQGLWLRQ 6S2:HDNSXOVH
6S26HQVRU$GMXVW&RQGLWLRQ 6S2:HDNVLJQDO
6S26HQVRU$GMXVW&RQGLWLRQ 6S20RWLRQ,QWHUIHUHQFH
6S26HQVRU$GMXVW&RQGLWLRQ 6S2([FHVV,QIUDUHGOLJKW
6S26HQVRU$GMXVW&RQGLWLRQ 6S2(OHFWULFDO2SWLFDO,QWHUIHUHQFH
6S26HQVRU$GMXVW&RQGLWLRQ +LJK3XOVH$PSOLWXGH
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU$OWHUQDWHVLWH"
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU&RYHUVHQVRUVLWH"
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU(DU)RUHKHDGVHQVRU"
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU1DVDO(DUVHQVRU"
6S2 6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU2[L0D[DGKHVLYHVHQVRU"
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU6HFXUHFDEOH
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU+HDGEDQG
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU:DUPVLWH
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU%DQGDJHDVVHPEO\
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU1DLOSROLVK
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU6HQVRUWRRWLJKW"
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU5HSRVLWLRQVHQVRU
6S26HQVRU$GMXVW0HVVDJHV 6S26HQVRU,VRODWHLQWHUIHUHQFHVRXUFH
6S26HQVRU$GMXVW0HVVDJHV 6S2 6HQVRU&OHDQVHQVRUVLWH
6S23XOVHVHDUFK 6S23XOVHVHDUFK
&23UHVVXUH1RW=HURHG &23UHVVXUH1RW=HURHG
&23UHVVXUH=HURLQ3URJUHVV &23UHVVXUH=HURLQ3URJUHVV
(W&2
&26HQVRU7RR:DUP &26HQVRU7RR:DUP
&26HQVRU:DUPLQJXS &26HQVRU:DUPLQJXS
7KHVHQVRULVQRWIRU,Q6HQVRUWUHQG 1RWDSSOLFDEOHVHQVRUW\SH
$EQRUPDOO\VKXWGRZQODVWWLPH $EQRUPDOO\VKXWGRZQODVWWLPH
1RWH,IWKHSRZHUORVVLVRYHU
VHFRQGVWKHPRQLWRUZLOOEHEDFNWRWKH
SUHYLRXVXVHUVHWWLQJV RUWKHIDFWRU\
GHIDXOWVHWWLQJV DVSHUWKHµVDYH
VHWWLQJVRQSRZHURII¶LQWKHVHUYLFH
PHQX
5HFRUGVZLWFKSUHVVHGZKHQQR 3ULQWHULVQRWDYDLODEOH
RSWLRQDOSULQWHULQVWDOOHG
([LW6FUROOLQJLQ7UHQG6FUHHQV 3UHVV.QREWR([LW6FUROO
2WKHU ([LW*UDSKLFDO7UHQG6FUHHQ 3UHVV+RPHVZLWFKWR([LW*UDSKLFDO
WUHQG
([LW7DEXODU7UHQG6FUHHQ 3UHVV+RPHVZLWFKWR([LW7DEXODUWUHQG
$ODUPVXVSHQG $ODUPVXVSHQG
$ODUPLQKLELWLRQ $ODUPLQKLELWLRQ
'HPR0RGH 'HPR0RGH
)UHH]H )UHH]H
9HQWULFXODU7DFK\FDUGLD 9HQWULFXODU7DFK\FDUGLD
3DXVH 3DXVH
5XQ39&V 5XQ39&V
3DLU39&V 3DLU39&V
5RQ739&V 5RQ739&V


3DUDPHWHU &RQGLWLRQ 0HVVDJHV
9HQWULFXODU%LJHPLQ\ 9HQWULFXODU%LJHPLQ\
9HQWULFXODU7ULJHPLQW\ 9HQWULFXODU7ULJHPLQW\
0XOWLIRUP39&V 0XOWLIRUP39&V
9HQWULFXODU5K\WKP 9HQWULFXODU5K\WKP
39&V 39&V
3DFHG%HDW 3DFHG%HDW
8QNQRZQ 8QNQRZQ
7DFK\FDUGLD 7DFK\FDUGLD
%UDG\FDUGLD %UDG\FDUGLD
,Q/HDUQ ,Q/HDUQ

1RWH7KH6S2LQIRUPDWLYHPDVVDJHVDUHIRU1HOOFRUPRGXOHRQO\

1RWH7KHUHPD\EHRWKHULQIRUPDWLYHPHVVDJHVWKDWDUHQRWOLVWHGDERYH


9LVXDO$ODUP,QGLFDWLRQ

7DEOH9LVXDO$ODUP&KDUDFWHULVWLFV
$ODUP&DWHJRU\ &RORU $ODUP,QGLFDWRU)ODVKLQJ5DWH
+LJKSULRULW\ 5HG IODVKHVLQVHFRQGV DSSUR[LPDWHO\+] 
0HGLXPSULRULW\ <HOORZ IODVKHVLQVHFRQGV DSSUR[LPDWHO\+] 
/RZSULRULW\ <HOORZ $OZD\VRQ QRQIODVKLQJ 

1RWH $ODUP ,QGLFDWRU RQ WKH FHQWHU WRS RI WKH IURQW SDQHO UHVSRQG ZLWK WKH IODVKLQJ
UDWHVGHVFULEHGLQ7DEOHZKHQDQDODUPRFFXUV

:KHQDKLJKSULRULW\DODUPLVDFWLYDWHGDQRQIODVKLQJDODUPPHVVDJHLVGLVSOD\HG7KH
QXPHULFDODUHDZLOOIODVKUHG

:KHQDPHGLXPSULRULW\DODUPLVDFWLYDWHGDQRQIODVKLQJDODUPPHVVDJHLVGLVSOD\HG
7KHQXPHULFDODUHDZLOOIODVK\HOORZ

:KHQ D ORZ SULRULW\ DODUP DFWLYDWHG D QRQIODVKLQJ DODUP PHVVDJH LV GLVSOD\HG 7KH
QXPHULFDODUHDZLOOFKDQJHWR\HOORZ

$XGLEOH$ODUP,QGLFDWLRQ

:$51,1* 'R QRW VLOHQFH WKH DXGLEOH DODUP RU GHFUHDVH LWV YROXPH LI SDWLHQW
 VDIHW\FRXOGEHFRPSURPLVHG
:$51,1*0DNHVXUHWKDWWKHPRQLWRUVSHDNHULVQRWREVWUXFWHG)DLOXUHWRGRVR
 FRXOGUHVXOWLQDQLQDXGLEOHDODUPWRQH

7DEOH$XGLEOH$ODUP&KDUDFWHULVWLFV
7RQH3LWFK %HHS5DWH
$ODUP&DWHJRU\
*1 ,(& *1 ,(&
+LJKSULRULW\ a+] a+] EHHSVLQVHF EHHSVLQVHF
0HGLXPSULRULW\ a+] a+] EHHSVLQVHF EHHSVLQVHF
/RZSULRULW\ a+] a+] EHHSVLQVHF EHHSVLQVHF

1RWH $XGLEOH DODUPV PD\ EH GHFUHDVHG LQ YROXPH DV GHVFULEHG LQ 7DEOH  RU
WHPSRUDULO\VLOHQFHG
ȱ
9HULI\LQJ9LVXDODQG$XGLEOH$ODUP,QGLFDWLRQ

,IWKHPRQLWRUIDLOVWRSHUIRUPDVVSHFLILHGLQWKLVWHVWFRQWDFWTXDOLILHGVHUYLFHSHUVRQQHO
RU\RXUORFDOVXSSOLHUIRUDVVLVWDQFH

<RXFDQYHULI\WKHDODUPRSHUDWLRQIRUDOOSDUDPHWHUVOLNH(&*6S21,%37HPS(W&2
DQG5HVSE\IROORZLQJWKHEHORZSURFHGXUHV

&RQQHFWWKHPRQLWRUWRDQ$&SRZHUVRXUFH
3UHVVWKH3RZHU%XWWRQWRWXUQRQWKHPRQLWRU
&RQQHFWWKHVLPXODWRUWRWKHVHQVRULQSXWFDEOHDQGFRQQHFWFDEOHWRPRQLWRU
6HWWKHVLPXODWRUWRDVPDOOHUYDOXHWKDQWKHORZHUDODUPOLPLWRQWKHPRQLWRU
9HULI\WKHIROORZLQJPRQLWRUUHDFWLRQ
D 7KHPRQLWRUEHJLQVWRWUDFNWKHSK\VLRORJLFDOVLJQDOIURPWKHVLPXODWRU


E $IWHU DERXW  WR  VHFRQGV WKH PRQLWRU GLVSOD\V WKH YDOXH PHDVXUHG DV
VSHFLILHG E\ WKHVLPXODWRU 9HULI\ YDOXHVDUH ZLWKLQ WKHWROHUDQFHVVSHFLILHGLQ
WKH 6SHFLILFDWLRQ VHFWLRQ IRU HDFK SDUDPHWHU (&* 6S2 1,%3 7HPS
(W&25HVS 
F $XGLEOHDODUPVRXQGV
G $ODUP,QGLFDWRUIODVKHV
H ³/RZOLPLWVYLRODWHG´PHVVDJHLVGLVSOD\HG
I 7KHQXPHULFDODUHDIODVKHVLQGLFDWLQJWKHSDUDPHWHUKDVYLRODWHGGHIDXOWDODUP
OLPLWV
1RWH 7KH PD[LPXP PHDQ WLPH RI WKH DODUP GHOD\ LV OHVV WKDQ  VHFRQGV XQOHVV
RWKHUZLVHVSHFLILHGLQWKLVPDQXDO

&KDQJLQJ$ODUP/LPLWV

:$51,1*(DFKWLPHWKHPRQLWRU LVXVHG FKHFNDODUPOLPLWVWR PDNHVXUHWKDW
 WKH\DUHDSSURSULDWHIRUWKHSDWLHQWEHLQJPRQLWRUHG
:$51,1*,IGLIIHUHQWDODUPSUHVHWVDUHXVHGIRUWKHVDPHRUVLPLODUHTXLSPHQW
 LQ DQ\ VLQJOH DUHD HJ DQ LQWHQVLYH FDUH XQLW RU FDUGLDF RSHUDWLQJ URRP D
SRWHQWLDOKD]DUGFDQH[LVW

&$87,21 'R QRW VHW WKH DODUP OLPLWV WR H[WUHPH YDOXHV WKDW FDQ FDXVH WKH
DODUPWREHFRPHXVHOHVV

<RXFDQFKDQJHDODUPOLPLWVIURPGHIDXOWYDOXHVLIQHFHVVDU\

$ODUPOLPLWVRU/LPLWDODUPLQKLELWLRQPD\EHVHWLQWZRZD\V

z 9LD LQWHUDFWLRQ ZLWK +535 6S2 1,%3 5HVSLUDWLRQ (W&2 DQG 7HPSHUDWXUH
PHQXV
RU
z 9LD LQWHUDFWLRQ ZLWK WKH $ODUP/LPLWV 0HQX WKDW SUHVHQWV WKH OLPLWV LQ DOO WKH
SDUDPHWHUVDWRQHWLPH

6HWWLQJ$ODUP/LPLWVYLD$ODUP/LPLWV0HQX
5RWDWHWKHMRJGLDOWRKLJKOLJKWWKH$ODUP/LPLWV0HQX,FRQRQWKHORZHURIWKHVFUHHQ
WKHQSUHVVWKHMRJGLDOWRGLVSOD\WKH$ODUP/LPLWV0HQX
3UHVVWKHMRJGLDOWRVHOHFW$ODUP/LPLWV7KHPRQLWRUZLOOGLVSOD\DOODODUPOLPLWVWKDW
DUHFXUUHQWO\LQHIIHFWIRUDOOPRQLWRUHGSDUDPHWHUV6HOHFWWKHDODUPOLPLWVWRVHW

7DEOH$ODUP/LPLWV0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
$/$50/,0,760(18
3ULQW2Q$ODUP  2Q2II
$ODUP/LPLWV +5356S21,%3 6<6',$0$3 5(63 
(W&2,Q&27(03
 $ODUP,QKLELWLRQIRUHDFKSDUDPHWHU
5HWXUQ 

1RWH 7KH PHQX RSWLRQV IROORZHG E\ DQ DVWHULVN  DUH RQO\ GLVSOD\HG ZLWK DV RSWLRQDO
SULQWHULQVWDOOHG



$ODUP/LPLWV5DQJHV
7DEOHGHVFULEHVWKHSRVVLEOHDODUPOLPLWV7KHPRQLWRULVVKLSSHG ZLWKIDFWRU\ GHIDXOW
VHWWLQJV

1RWH $XWKRUL]HG SHUVRQQHO FDQ GHILQH WKH ZD\ WR VDYH WKH SRZHU GHIDXOW XVHU VHWWLQJ
EDFNXS DQG IDFWRU\ GHIDXOW 7KH GHWDLOHG LQIRUPDWLRQ LV GHVFULEHG LQ WKH VHUYLFH
PDQXDO

7DEOH$ODUP/LPLWV5DQJHV
3DUDPHWHUV 8SSHU/LPLW'HIDXOW /RZHU/LPLW'HIDXOW 5HVROXWLRQ
+535 %30 
$GXOW a%30%30 a%30%30 %30
3HGLDWULF a%30%30 a%30%30 %30
1HRQDWDO a%30%30 a%30%30 %30
67OHYHO, P9 
$GXOW aP9P9 aP9P9 P9
3HGLDWULF aP9P9 aP9P9 P9
QHRQDWDO aP9P9 aP9P9 P9
67OHYHO,, P9 
$GXOW aP9P9 aP9P9 P9
3HGLDWULF aP9P9 aP9P9 P9
QHRQDWDO aP9P9 aP9P9 P9
67OHYHO,,, P9 
$GXOW aP9P9 aP9P9 P9
3HGLDWULF aP9P9 aP9P9 P9
QHRQDWDO aP9P9 aP9P9 P9
67OHYHO9 P9 
$GXOW aP9P9 aP9P9 P9
3HGLDWULF aP9P9 aP9P9 P9
QHRQDWDO aP9P9 aP9P9 P9
$UUK\WKPLD
$GXOW aPLQPLQ  PLQ
3HGLDWULF aPLQPLQ  PLQ
QHRQDWDO aPLQPLQ  PLQ
1,%36\VWROLF PP+JN3D 
aPP+JPP+J aPP+JPP+J PP+J
$GXOW
aN3DN3D  aN3DN3D  RUN3D 
aPP+JPP+J aPP+JPP+J PP+J
3HGLDWULF
aN3DN3D  aN3DN3D  RUN3D 
aPP+JPP+J aPP+JPP+J PP+J
1HRQDWDO
aN3DN3D  aN3DN3D  RUN3D 
1,%3'LDVWROLF PP+JN3D 
aPP+JPP+J aPP+JPP+J PP+J
$GXOW
aN3DN3D  aN3DN3D  RUN3D 
aPP+JPP+J aPP+JPP+J PP+J
3HGLDWULF
aN3DN3D  aN3DN3D  RUN3D 
aPP+JPP+J aPP+JPP+J PP+J
1HRQDWDO
aN3DN3D  aN3DN3D  RUN3D 
1,%30$3 PP+JN3D 
aPP+JPP+J aPP+JPP+J PP+J
$GXOW
aN3DN3D  aN3DN3D  RUN3D 
aPP+JPP+J aPP+JPP+J PP+J
3HGLDWULF 
aN3DN3D  aN3DN3D  RUN3D 
aPP+JPP+J aPP+JPP+J PP+J
1HRQDWDO
aN3DN3D  aN3DN3D  RUN3D 
6S2  
$GXOW a a 


3DUDPHWHUV 8SSHU/LPLW'HIDXOW /RZHU/LPLW'HIDXOW 5HVROXWLRQ
3HGLDWULF a a 
1HRQDWDO a a 
5HVSLUDWLRQ %30 
$GXOW a%30%30 a%30%30 %30
3HGLDWULF a%30%30 a%30%30 %30
1HRQDWDO a%30%30 a%30%30 %30
7HPSHUDWXUH ƒ&ƒ) 
aƒ&ƒ& aƒ&ƒ& ƒ&
$GXOW
aƒ)ƒ)  aƒ)ƒ)  ƒ)RUƒ) 
aƒ&ƒ& aƒ&ƒ& ƒ&
3HGLDWULF
aƒ)ƒ)  aƒ)ƒ)  ƒ)RUƒ) 
aƒ&ƒ& aƒ&ƒ& ƒ&
1HRQDWDO
aƒ)ƒ)  aƒ)ƒ)  ƒ)RUƒ) 
(W&2 PP+JN3D 
aPP+JPP+J aPP+JPP+J PP+J
$GXOW aN3DN3D  aN3DN3D  N3D 
a  a   
aPP+JPP+J aPP+JPP+J PP+J
3HGLDWULF aN3DN3D  aN3DN3D  N3D 
a  a   
aPP+JPP+J aPP+JPP+J PP+J
1HRQDWDO aN3DN3D  aN3DN3D  N3D 
a  a   
,Q&2 PP+JN3D 
aPP+JPP+J aPP+JPP+J PP+J
$GXOW aN3DN3D  aN3DN3D  N3D 
a  a   
aPP+JPP+J aPP+JPP+J PP+J
3HGLDWULF aN3DN3D  aN3DN3D  N3D 
a  a   
aPP+JPP+J aPP+JPP+J PP+J
1HRQDWDO aN3DN3D  aN3DN3D  N3D 
a  a   



$XGLEOH$ODUP6LOHQFH

:$51,1* 'R QRW VLOHQFH WKH DXGLEOH DODUP RU GHFUHDVH LWV YROXPH LI SDWLHQW
 VDIHW\FRXOGEHFRPSURPLVHG

:KHQ DQ DODUP RFFXUV \RX FDQ VLOHQFH WKH DXGLEOH DODUP IRU WKH DXGLEOH DODUP VLOHQFH
SHULRG    RU  VHFRQGV  VHOHFWHG YLD VHUYLFH PHQX +RZHYHU YLVXDO DODUPV
FRQWLQXH GXULQJ WKLV WLPH 7KH IDFWRU\ GHIDXOW IRU DXGLEOH DODUP VLOHQFH SHULRG LV 
VHFRQGV

7RVLOHQFHDQDXGLEOHDODUP

 3UHVV WKH $ODUP 6WRS %XWWRQ WR LPPHGLDWHO\ VLOHQFH WKH DODUP WRQH 7KH DODUP
UHVXPHV DIWHU WKH DXGLEOH DODUP VLOHQFH SHULRG LI WKH DODUP FRQGLWLRQ KDV QRW EHHQ
FRUUHFWHG
 &KHFNWKHSDWLHQWDQGSURYLGHDSSURSULDWHFDUH

'XULQJWKHDXGLEOHDODUPVLOHQFHSHULRG \RXFDQSUHVVWKH$ODUP6WRS%XWWRQDJDLQWR
UHHQDEOHWKHDXGLEOHDODUPWRQHV$OVRLIDQRWKHUDODUPRFFXUVGXULQJWKHDXGLEOHDODUP
VLOHQFHSHULRGWKHDXGLEOHDODUPWRQHVZLOOEHDXWRPDWLFDOO\UHHQDEOHG

1RWH7KHDXGLEOHDODUPVFDXVHGE\VRPHWHFKQLFDOHUURUVPD\EHFDQFHOHGE\SUHVVLQJ
WKH$ODUP6WRS%XWWRQ+RZHYHUEDWWHU\IDLOXUHDQGSK\VLRORJLFDODODUPVFDQQRW
EHFDQFHOHGXQWLOWKHDODUPFRQGLWLRQLVFRUUHFWHG



$XGLEOH$ODUP6XVSHQG,QKLELWLRQ

:$51,1* ,I DQ DODUP FRQGLWLRQ RFFXUV ZKLOH LQ WKH $ODUP 6XVSHQG VWDWH WKH
 RQO\ DODUP LQGLFDWLRQ RQ WKH PRQLWRU ZLOO EH YLVXDO GLVSOD\V UHODWHG WR WKH DODUP
FRQGLWLRQ

7KHUHDUHWZRPRGHVWRGLVDEOHWKHDXGLEOHDODUP

$XGLEOH$ODUP6XVSHQG0RGH
$XGLEOH$ODUP,QKLELWLRQ0RGH

7RLQLWLDWHDQDXGLEOHDODUPVXVSHQGRULQKLELWLRQ

7RLQLWLDWHDQDXGLEOHDODUPVXVSHQGRULQKLELWLRQSUHVVWKH$ODUP6WRS%XWWRQDQG
KROGLWIRUDWOHDVWVHFRQGV
7RFDQFHO DQ DXGLEOHDODUPVXVSHQGRU LQKLELWLRQFRQGLWLRQ SUHVVWKH$ODUP 6WRS
%XWWRQIRUVHFRQGVDJDLQ

1RWH<RXPD\GLVDEOHOLPLWYLRODWLRQDODUPVRIHDFKYLWDOVLJQYLDWKH+5356S21,%3
5HVSLUDWLRQ(W&27HPSHUDWXUHRU$ODUP/LPLWVPHQXV

7KLV DFWLRQ GLVDEOHV DXGLEOH DODUPV IRU D XVHUGHILQHG $XGLEOH $ODUP 6XVSHQVLRQ
3HULRG 2IIPLQXWHVRU,QGHILQLWH VHOHFWHGYLDWKH6HUYLFH0HQX

,I$XGLEOH$ODUP6XVSHQVLRQ3HULRGLVVHWWRRUPLQXWHVWKHDXGLEOH
DODUP LV QRW DFWLYDWHG IRU WKH VSHFLILHG WLPH LQWHUYDO DQG WKH PHVVDJH ³$XGLEOH DODUP
VXVSHQGHG´LVGLVSOD\HG

,I2))LVVHOHFWHGWKHDXGLEOHDODUPVXVSHQGRULQKLELWLRQLVQRWDOORZHGWRDFWLYDWH

,I,QGHILQLWHLVVHOHFWHGWKHDXGLEOHDODUPLVLQKLELWHGDQGWKHPHVVDJH³$XGLEOHDODUP
LQKLELWHG´ LV GLVSOD\HG 7KH DODUP LQKLELWLRQ VWDWH ZLOO EH WHUPLQDWHG E\ SUHVVLQJ WKH
$ODUP6WRS%XWWRQIRUDWOHDVWVHFRQGV

,QWKHDODUPLQKLELWLRQVWDWHDQ$ODUP5HPLQGHU7RQHZLOOVRXQGDWWKHSUHVHWLQWHUYDOWR
UHPLQGWKHXVHUWKDWWKHDXGLEOHDODUPLVLQKLELWHG
7KHSUHVHWLQWHUYDOIRUDQ$ODUP5HPLQGHU7RQHFDQEHVHWWR2))RUPLQXWHVYLD
WKH6HUYLFH0HQX,I2))LVVHOHFWHGWKH5HPLQGHU7RQHZLOOEHGLVDEOHG

1RWH7KHSHULRGVFDQRQO\EHFKDQJHGE\DXWKRUL]HGSHUVRQQHOYLDWKH6HUYLFH0HQX













7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN


(&*021,725,1*

:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH RQO\
 DFFHVVRULHVVXSSOLHGRUUHFRPPHQGHGE\0HGLDQD8VHDFFHVVRULHVDFFRUGLQJWR
WKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVHDQG\RXUIDFLOLW\¶VVWDQGDUGV
:$51,1* /LQH LVRODWLRQ PRQLWRU WUDQVLHQWV PD\ UHVHPEOH DFWXDO FDUGLDF
 ZDYHIRUPVDQGWKXVLQKLELWKHDUWUDWHDODUPV6XFKWUDQVLHQWVPD\EHPLQLPL]HG
E\ SURSHU HOHFWURGH DQG FDEOH SODFHPHQW DV VSHFLILHG LQ WKLV PDQXDO DQG
HOHFWURGHGLUHFWLRQVIRUXVH
:$51,1* 'R QRW XVH GDPDJHG (&* OHDGV 'R QRW LPPHUVH (&* OHDGV
 FRPSOHWHO\LQZDWHUVROYHQWVRUFOHDQLQJVROXWLRQV'RQRWVWHULOL]H(&*OHDGVE\
LUUDGLDWLRQVWHDPRUHWK\OHQHR[LGH)ROORZWKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVH
:$51,1* 'R QRW XVH (&* HOHFWURGHV ZLWK H[SLUHG GDWHV 'R QRW XVH GHIHFWLYH
 (&*HOHFWURGHV7KHVHPLJKWFDXVHLPSURSHUSHUIRUPDQFH
:$51,1*(&*FDEOHVPD\EHGDPDJHGLIWKH\DUHFRQQHFWHGWRDSDWLHQWGXULQJ
 GHILEULOODWLRQ &DEOHV WKDW KDYH EHHQ FRQQHFWHG WR D SDWLHQW GXULQJ GHILEULOODWLRQ
VKRXOGEHFKHFNHGIRUIXQFWLRQDOLW\EHIRUHXVLQJDJDLQ
:$51,1* ,W LV SRVVLEOH IRU WKH SDWLHQW WR UHFHLYH D EXUQ GXH WR DQ LPSURSHUO\
 FRQQHFWHG HOHFWURVXUJLFDO XQLW $GGLWLRQDOO\ WKH PRQLWRU FRXOG EH GDPDJHG RU
PHDVXUHPHQW HUURUV FRXOG RFFXU 3ODFH WKH (&* FDEOH DQG OHDGV DV IDU DV
SRVVLEOH IURP WKH VLWH RI WKH HOHFWURVXUJLFDO XQLW DQG IURP WKH HOHFWURVXUJLFDO
FDEOHV7KLVZLOOPLQLPL]HLQWHUIHUHQFHDQGWKHULVNRIEXUQVWRWKHSDWLHQW
:$51,1* )RU SDFHPDNHU SDWLHQWV WKH PRQLWRU PD\ FRQWLQXH WR FRXQW
 SDFHPDNHU UDWH GXULQJ RFFXUUHQFHV RI FDUGLDF DUUHVW RU VRPH DUUK\WKPLDV 7R
UHGXFH WKH OLNHOLKRRG RI WKLV HQVXUH WKDW WKH 3DFHU 'HWHFW VHWWLQJ LV 21 LQ WKH
(&* ZDYHIRUP PHQX ZKHQ PRQLWRULQJ VXFK SDWLHQWV 'R QRW UHO\ HQWLUHO\ XSRQ
WKHPRQLWRUDODUPV.HHSSDFHPDNHUSDWLHQWVXQGHUFORVHVXUYHLOODQFH
:$51,1*7RHQVXUHSDWLHQWVDIHW\WKHFRQGXFWLYHSDUWVRIWKH(&*HOHFWURGHV
 LQFOXGLQJ DVVRFLDWHG FRQQHFWRUV  DQG RWKHU SDWLHQWDSSOLHG SDUWV VKRXOG QRW
FRQWDFWRWKHUFRQGXFWLYHSDUWVLQFOXGLQJHDUWKJURXQGDWDQ\WLPH

*HQHUDO
7KH SURFHVV RI GHSRODUL]DWLRQ DQG UHSRODUL]DWLRQ RI WKH P\RFDUGLXP JHQHUDWHV HOHFWULF
SRWHQWLDOVWKDWDUHVHQVHGE\(&*HOHFWURGHVRQWKHVNLQVXUIDFH7KHVHHOHFWURGHVDUH
W\SLFDOO\DWWDFKHGWRWKHSDWLHQW¶VULJKWDUPOHIWDUPDQGOHIWOHJ7KHPRQLWRUSURFHVVHV
DQG DPSOLILHV WKHVH VLJQDOV DQG SUHVHQWV WKH (&* ZDYHIRUP RQ WKH VFUHHQ $OVR WKH
PRQLWRU FRPSXWHV WKH PLQXWH KHDUW UDWH DW OHDVW HYHU\ VHFRQG E\ PRYLQJ DYHUDJH ,Q
DGGLWLRQWRWKHDFTXLVLWLRQ RIWKH456FRPSOH[WKHFLUFXLWU\ SHUIRUPVDQXPEHURIRWKHU
IXQFWLRQV7KHPRQLWRUFDQGLVSOD\

z +HDUWUDWHLQEHDWVSHUPLQXWH
z 'HWHFWLRQRID³OHDGRII´FRQGLWLRQLIDQHOHFWURGHLVGLVFRQQHFWHGRUSRRUO\FRQQHFWHG
z 'HWHFWLRQRIWKHSUHVHQFHRISDFHPDNHUVLJQDOVZLWKLQWKH(&*ZDYHIRUPFRPSOH[

1RWH 2FFDVLRQDOO\ HOHFWURPDJQHWLF LQWHUIHUHQFH EH\RQG WKH UDQJH JXDUDQWHHG IURP WKH
PDQXIDFWXUHU¶VGHFODUDWLRQPD\FDXVHWKHPRQLWRUWRGLVSOD\D&KHFN(&*/HDGV
(OHFWURGHVDODUP7KLVRFFXUUHQFHLVUDUHDQGGXUDWLRQVKRXOGEHVKRUW:KHQ
WKH LQWHUIHUHQFH FHDVHV WKH PRQLWRU UHPRYHV WKH &KHFN (&* /HDGV 
(OHFWURGHVDODUP5HIHUWRWKH6SHFLILFDWLRQVHFWLRQ


6HWXS&RQQHFWLRQV

1RWH 0HGLDQDUHFRPPHQGVWKHXVH RIVLOYHUVLOYHUFKORULGHHOHFWURGHV $J$J&O :KHQ
GLVVLPLODUPHWDOVDUHXVHGIRUGLIIHUHQWHOHFWURGHVWKHHOHFWURGHVPD\EHVXEMHFWWR
ODUJHRIIVHWSRWHQWLDOVGXHWRSRODUL]DWLRQZKLFKPD\EHVHYHUHHQRXJKWRSUHYHQW
REWDLQLQJ DQ (&* WUDFH 8VLQJ GLVVLPLODU PHWDOV PD\ DOVR LQFUHDVH UHFRYHU\ WLPH
DIWHUGHILEULOODWLRQ

6HOHFWWKHHOHFWURGHVWREHXVHG8VHRQO\RQHW\SHRIHOHFWURGHRQWKHVDPHSDWLHQWWR
DYRLG YDULDWLRQV LQ HOHFWULFDO UHVLVWDQFH 3UHSDUH WKH HOHFWURGH VLWHV DFFRUGLQJ WR WKH
HOHFWURGH PDQXIDFWXUHU¶V LQVWUXFWLRQV 6HH )LJXUH  DQG  IRU HOHFWURGH SODFHPHQW
FRQILJXUDWLRQV


)LJXUH6WDQGDUG(OHFWURGH3ODFHPHQW


)LJXUH(OHFWURGH3ODFHPHQW

1RWH2QHRIWR/HDGHOHFWURGHSODFHPHQWVLWHVIRUWKHILIWKOHDG

&RQQHFWWKH(&*OHDGZLUHVDQG(&*FDEOH 
&RQQHFWWKH(&*FDEOHWRWKH(&*FRQQHFWRURQWKHPRQLWRU¶VULJKWSDQHO
$WWDFKWKHOHDGVWRWKHHOHFWURGHVDQGWKHQDSSO\WKHHOHFWURGHVWRWKHSDWLHQWXVLQJ
WKHFRORUFRGHJXLGHLQ7DEOH9HULI\WKDWWKHGHVLUHG/HDG6HOHFWLRQLVDFWLYHLQWKH
(&* ZDYHIRUP DUHD 5HIHU WR 7DEOH  /HDG ,, LV EHVW VXLWHG IRU PRVW PRQLWRULQJ
VLWXDWLRQV 


7DEOH(&*/HDG&RORUV
/HDG $$0, ,(&
5LJKWDUP :KLWH 5$  5HG 5 
/HIWDUP %ODFN /$  <HOORZ / 
/HIWOHJ 5HG //  *UHHQ ) 
5LJKWOHJ *UHHQ 5/  %ODFN 1 
WR9 &KHVW  %URZQ 9  :KLWH & 

7DEOH(&*/HDG3DLUV
/HDG6HOHFWLRQ (OHFWURGH'LIIHUHQWLDO $$0,  (OHFWURGH'LIIHUHQWLDO ,(& 
, 5$   /$ 5   /
,, 5$   // 5   )
,,, /$   // /   )
9 &KHVW  5$/$//    &KHVW 9  5/)    &KHVW & 
D95 ± /HDG,/HDG,,,  ± /HDG,/HDG,,, 
D9/ /HDG,±/HDG,,,  /HDG,±/HDG,,, 
D9) /HDG,,/HDG,,,  /HDG,,/HDG,,, 

$UUK\WKPLD0RQLWRULQJ

$UUK\WKPLD PRQLWRULQJ SURYLGHV LQIRUPDWLRQ RQ \RXU SDWLHQW¶V FRQGLWLRQ LQFOXGLQJ KHDUW
UDWH 39& UDWH UK\WKP DQG HFWRSLFV ,I DUUK\WKPLD GHWHFWLRQ LV HQDEOHG WKH PRQLWRU
FDOFXODWHV WKH QXPEHU RI SUHPDWXUH YHQWULFXODU FRQWUDFWLRQV 39&V  SHU PLQXWH DQG
GLVSOD\V WKH YDOXH RQ WKH PRQLWRU 7KH 39& YDOXH LV XVHG D EDVH PHDVXUHPHQW IRU
VHYHUDORIWKHDUUK\WKPLDDODUPV

7KHPRQLWRUGLVSOD\VDUUK\WKPLDVWDWXVPHVVDJHVDVIROORZV
39&V5RQ739&V3DLU39&V5XQ39&V9HQWULFXODU5K\WKP9HQWULFXODUWDFK\FDUGLD
0XOWLIRUP 39&V 9HQWULFXODU %LJHPLQ\ 9HQWULFXODU 7ULJHPLQ\ 3DXVH 3DFHG %HDW
%DUG\FDUGLD7DFK\FDUGLD8QNQRZQ,Q/HDUQ9),% 9HQWULFXODU)LEULOODWLRQ 

7KH PHVVDJHV DUH GLVSOD\HG RQ WKH PRQLWRU IRU PLQXWH DIWHU JHQHUDWHG PRUH WKDQ 
PLQXWH)RUPRUHLQIRUPDWLRQDERXWPHVVDJHVUHIHUWRWKH$ODUPVDQGOLPLWVVHFWLRQ

7KHWDEOHEHORZLQGLFDWHVWKHKHDUWUDWHUDQJHVIRUVLQXVDQG69UK\WKPV


7DEOH+HDUW5DWH5DQJHVIRU6LQXVDQG5K\WKPV
+HDUW5DWH5DQJH
5K\WKP
$GXOW 3HGLDWULF 1HRQDWDO
%UDG\FDUGLD WR WR WR
1RUPDO WR WR WR
7DFK\FDUGLD ! ! !




6HOHFWLQJ(&*/HDGIRU$UUK\WKPLD0RQLWRULQJ
:KHQ OHDGVDUHDWWDFKHGDQ (&*OHDGGLVSOD\HG RQ (&* ZDYHIRUPDUHDLV XVHGIRU
WKH DUUK\WKPLD GHWHFWLRQ :KHQ  OHDGV DUH DWWDFKHG DQ (&* OHDG GLVSOD\HG RQ (&*
ZDYHIRUPDUHDDQG/HDG I RU II DUHXVHGIRUDUUK\WKPLDGHWHFWLRQ$WWKLVWLPH/HDG I RU II
LVVHOHFWHGE\WKHPRQLWRUDWUDQGRP

$UUK\WKPLD$ODUPV
7KHPRQLWRUGHWHFWVDUUK\WKPLDDODUPFRQGLWLRQ E\FRPSDULQJ(&*GDWDWRDVHWRISUH
GHILQHG FULWHULD $Q DODUP FDQ EH WULJJHUHG E\ D UDWH H[FHHGLQJ WKH DODUP OLPLWV DQ
DEQRUPDO UK\WKP RU DQ HFWRSLF HYHQW )RU PRUH LQIRUPDWLRQ DERXW WKH DODUP FRQGLWLRQ
UHIHUWRWKH$ODUPDQGOLPLWVVHFWLRQ

670RQLWRULQJ

7KHPRQLWRUSHUIRUPV67OHYHODQDO\VLVRQQRUPDODQGDWULDOO\SDFHGEHDWVDQGPHDVXUHV
67OHYHOHOHYDWLRQVDQGGHSUHVVLRQV7KLVLQIRUPDWLRQFDQEHGLVSOD\HGLQWKHIRUPRI67
YDOXH VQLSSHWV RQ WKH PRQLWRU $ SRVLWLRQ 67 YDOXH LQGLFDWHV 67 VHJPHQW HOHYDWLRQ D
QHJDWLYHYDOXHLQGLFDWHVGHSUHVVLRQ

670HDVXUHPHQW3RLQW
67OHYHOLVPHDVXUHGE\FDOFXODWLQJDYHUDJHWKHUDQJHRIaPVHFDIWHU-SRLQW67
PHDVXUHPHQWSRLQWFDQEHFKDQJHGE\47FYDOXHDFFRUGLQJWRKHDUWUDWH

67$ODUPV
67DODUPVDUHWULJJHUHG ZKHQ 67YDOXH H[FHHGV LW¶V DODUPOLPLW7KHPRQLWRUFDQGHWHFW
DODUPV RQ HDFK 67 OHDG VHSDUDWHO\ VR \RX FDQ VHW KLJK DQG ORZ 67 DODUP OLPLWV
LQGLYLGXDOO\IRUHDFK67OHDG6HWWKHKLJKDQGORZDODUPOLPLWVEDVHGRQ\RXUDVVHVVPHQW
RI WKH SDWLHQW¶V FOLQLFDO FRQGLWLRQ XQLW SURWRFROV SK\VLFLDQ RUGHUV RU PHGLFDWLRQ VSHFLILHG
OLPLWV$JRRGJXLGHOLQHLVP9RUP9IURPWKHSDWLHQW¶V67RUIROORZ\RXUKRVSLWDO
SURWRFRO,QWKH+535PHQXVHOHFWWKHDODUPWREHDGMXVWHG




'HVFULSWLRQRI+5350HQX)XQFWLRQV

7KH FDOFXODWHG +HDUW 5DWH3XOVH 5DWH PD\ EH GHULYHG IURP GLIIHUHQW VRXUFHV (&*
6S2RU1,%3 DVVKRZQE\WKHLFRQLQWKH+535QXPHULFDODUHD









 

                     

 +535LFRQ  67OHYHO 
 +535XQLW  67OHYHOXQLW
 +535VRXUFHLFRQ  $UUK\WKPLDGHWHFWLRQLFRQ
 +535YDOXH  $UUK\WKPLDEHDWVFRQW
 67OHYHOLFRQ  $UUK\WKPLDEHDWVFRQWXQLW
 67OHYHOGHVLJQDWRU  
   
)LJXUH+535'LVSOD\

7DEOH+5350HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
+5350(18
+5356RXUFH $XWR (&* ! 6S2 35 ! 1,%3 35 
(&*6S21,%3
$UUK\WKPLD'HWHFWLRQ67/HYHO$QDO\VLV 2Q2II
+535$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
+535$ODUP,QKLELWLRQ  2Q2II 

67  $ODUP/LPLW$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW

67  $ODUP/LPLW$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW

67  $ODUP/LPLW$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW

67  $ODUP/LPLW$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
$UUK\WKPLD$ODUP/LPLW$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
5HWXUQ 




+5356RXUFH
<RXPD\VHOHFW$XWR(&*6S2RU1,%3WRGHFLGHWKHVRXUFHRIWKHKHDUWUDWHRUSXOVH
UDWH,I\RXVHOHFW$XWRWKHPRQLWRUDXWRPDWLFDOO\GHULYHVWKHKHDUWUDWHRUSXOVHUDWHIURP
RQHRIWKHPRQLWRULQJSDUDPHWHUVLQWKLVRUGHURISULRULW\(&*6S2RU1,%3:KHQ(&*
LVVHOHFWHGWKHKHDUWUDWH +5 LVPHDVXUHGIURP(&*:KHQ6S2RU1,%3LVVHOHFWHG
WKH SXOVH UDWH 35  LV PHDVXUHG IURP 6S2 RU 1,%3 7KH FRORU RI WKH +535 LFRQ DQG
+535 VRXUFH LFRQ ZLOO EH FKDQJHG DFFRUGLQJ WR WKH FXUUHQW VRXUFH ,I WKH SXOVH UDWH LV
GHULYHG IURP 1,%3 WKH YDOXH ZLOO EH GLVSOD\HG IRU RQO\  PLQXWHV DIWHU WKH 1,%3
PHDVXUHPHQWWKHQWKHYDOXHZLOOEHUHPRYHGIURPWKHGLVSOD\7KH+535WRQHYROXPH
FDQEHDGMXVWHGLQWKH6HWXS0HQX5HIHUWRWKH8VLQJWKH0RQLWRUVHFWLRQ 6HH)LJXUH
7DEOH 
$UUK\WKPLD'HWHFWLRQ67/HYHO$QDO\VLV
<RX PD\ VHOHFW 2Q WR XVH DUUK\WKPLD DQG 67 PRQLWRULQJ IXQFWLRQ :KHQ $UUK\WKPLD
'HWHFWLRQ67/HYHO$QDO\VLVLVVHWWR2Q)LOWHU0RGHLVDXWRPDWLFDOO\FKDQJHGWR/RZ
([WHQGDQGWKHQXPEHURI$UUK\WKPLDSHUPLQXWH67OHYHODQGDUUK\WKPLDGHWHFWLRQDQG
67OHYHOLFRQDUHGLVSOD\HGRQWKH+535QXPHULFDODUHD:KHQOHDGVDUHDWWDFKHGWKH
67OHYHORIWKH/HDGXVHGIRU(&*ZDYHIRUPLVGLVSOD\HG+RZHYHUWKH67OHYHORI/HDG
II LVGLVSOD\HGLIWKHPRQLWRUGRHVQRWGLVSOD\ (&* ZDYHIRUPRQWKHVFUHHQGXULQJ(&*
PRQLWRULQJ:KHQOHDGV DUHDWWDFKHGWKH 67OHYHO RI/HDG I IIIII
II III RU VLVGLVSOD\HG LQ
WXUQ
+535$ODUP,QKLELWLRQ
:KHQWKHOLPLWDODUPLQKLELWLRQLVVHWWR2QWKHDXGLEOHDODUPIRU+535OLPLWYLRODWLRQLV
LQKLELWHG



'HVFULSWLRQRI(&*:DYHIRUP0HQX)XQFWLRQV










 (&*ZDYHIRUPLFRQ  (&*ZDYHIRUP
 (&*VL]HEDU  (&*OHDGSDLU
   
)LJXUH(&*:DYHIRUP'LVSOD\

7DEOH(&*:DYHIRUP0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
(&*:$9()2500(18
/HDG6HOHFW /HDG,,,,,,D95D9/D9)&KHVW/HDG 9 
6ZHHS6SHHG PPVPPVPPV
6L]H PPSHUP9  $XWRPPP9PPP9PPP9PPP9
PPP9PPP9PPP9PPP9
3DFHU'HWHFW 2Q2II
)LOWHU0RGH 0RQLWRU/RZ([WHQG)LOWHU 
/DUJH1XPHULF1,%3 
:DYHIRUP0HQX (&*ZDYHIRUP6S2ZDYHIRUP5HVSLUDWLRQZDYHIRUP
(W&2ZDYHIRUP
7UHQG0HQX 7DEXODUWUHQG*UDSKLFDOWUHQG
5HOHDUQ <HV1R
5HWXUQ 

(&*&DEOH6HOHFW
7KHPRQLWRUGHWHFWV(&*OHDGZLUHRUOHDGZLUHDXWRPDWLFDOO\

/HDG6HOHFW
7KH PRQLWRU DXWRPDWLFDOO\ GHWHFWV WKH DWWDFKHG OHDG DQG WKH DYDLODEOH (&* OHDG
VHOHFWLRQLVGLVSOD\HGZKHQWKHOHDGVHOHFWPHQXLVVHOHFWHG)RUH[DPSOH/HDG6HOHFW
VKRZVRQO\/HDG,,,DQG,,,ZKHQOHDGVDUHDWWDFKHG<RXFDQVHOHFWWKHGHVLUHG(&*
OHDG)RUPRUHLQIRUPDWLRQDERXWWKHOHDGVHOHFWLRQUHIHUWR7DEOH

6ZHHS6SHHG
7KH XVHUVHOHFWDEOH VZHHS VSHHG GHWHUPLQHV WKH VSHHG DW ZKLFK WKH (&* ZDYHIRUP
WUDFH PRYHV DFURVV WKH VFUHHQ 6ZHHS 6SHHG FDQ EH VHOHFWHG IURP  PPV 
PPVDQGPPVDQG(&*ZDYHIRUPLVV\QFKURQL]HGZLWK6S2ZDYHIRUP

6L]H
7KHXVHUVHOHFWDEOH(&*ZDYHIRUPVL]HDOORZV\RXWRDGMXVWWKHDPSOLWXGHRIDQ(&*
ZDYHIRUP7KHVL]HFDQEHVHOHFWHGIURP$XWRPPP9PPP9PPP9
PPP9PPP9PPP9PPP9PPP9:KHQWKHVL]HLVVHWWR
$XWR7KHPRQLWRUDXWRPDWLFDOO\GHWHUPLQHVWKHRSWLPDOVL]HRIWKH(&*ZDYHIRUPWRILW
WKHVSDFH



3DFHU'HWHFW
3DFHUGHWHFWVKRXOGDOZD\VEH2QIRUSDWLHQWVZLWKSDFHPDNHUV UHIHUWRWKHZDUQLQJLQ
WKLV VHFWLRQ  :KHQ 3DFHU GHWHFW LV 2Q WKH PRQLWRU GHWHFWV DQG ILOWHUV SDFHPDNHU
JHQHUDWHGVLJQDOVVRWKDWWKH\ZLOOQRWEHFDOFXODWHGLQGHWHUPLQLQJDSDWLHQW¶VKHDUWUDWH
:KHQPRQLWRULQJSDWLHQWVZLWKRXWSDFHPDNHUV3DFHUGHWHFWVKRXOGEHVHWWR2IIWRDYRLG
PLVGLDJQRVLV

)LOWHU0RGH
7KHPRQLWRUFDQILOWHU(&*ZDYHIRUPQRLVHZLWKGLIIHUHQWUDQJHVRIIUHTXHQF\UHVSRQVH
/RZ([WHQG +]WR+] ([SDQGVWKHUDQJHWRGLVSOD\YHU\ORZIUHTXHQFLHVGRZQ
WR+]
)LOWHU +]WR+] *HQHUDOO\FDOOHGDILOWHUPRGHLWUHGXFHV(&*ZDYHIRUPQRLVH
0RQLWRU +]WR+] &KRRVHWKLVPRGHWRVHHMXVWWKH(&*ZDYHIRUPPRQLWRULQJ

/DUJH1XPHULF1,%3
:KHQ /DUJH 1XPHULF 1,%3 LV VHOHFWHG /DUJH 1XPHULF 1,%3 LV GLVSOD\HG RQ WKH
ZDYHIRUPDUHD

5HOHDUQ
,I (&* OHDG RU OHDG OHYHO LV FKDQJHG PDQXDOO\ RU (&* PRQLWRULQJ UHVWDUWV 5HOHDUQ LV
DXWRPDWLFDOO\LQLWLDWHG$OVR\RXFDQVHOHFW5HOHDUQPDQXDOO\WRLQLWLDWHUHOHDUQLQJ'XULQJ
WKH OHDUQ VHTXHQFH µ,Q/HDUQ¶ LV GLVSOD\HG RQ WKH PRQLWRU ZKLOH WKH V\VWHP HVWDEOLVKHV
WKHKHDUWUDWHDQGEHLQJVWRFODVVLI\HDFKEHDW,I456VL]HLVWRRVPDOORUQRWZLGHUWKDQ
WKHQRUPDO456WKHHUURURFFXUVLQWKHDQDO\VLVDOJRULWKPDOWKRXJK39&LVGHWHFWHG6R
\RXVKRXOGVHOHFWODUJH456HQRXJKWREHGHWHFWHG


1,%3021,725,1*

:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH RQO\
 DFFHVVRULHVVXSSOLHGRUUHFRPPHQGHGE\0HGLDQD8VHDFFHVVRULHVDFFRUGLQJWR
WKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVHDQG\RXUIDFLOLW\¶VVWDQGDUGV
:$51,1*,QDFFXUDWHPHDVXUHPHQWVPD\EHFDXVHGE\LQFRUUHFWFXIIDSSOLFDWLRQ
 RU XVH 7KLV FDQ LQFOXGH SODFLQJ WKH FXII WRR ORRVHO\ RQ WKH SDWLHQW XVLQJ WKH
LQFRUUHFWFXIIVL]HRUQRWSODFLQJWKHFXIIDWWKHVDPHOHYHODVWKHKHDUWOHDN\FXII
RUKRVHRUH[FHVVLYHSDWLHQWPRWLRQ
:$51,1* ,Q VRPH FDVHV UDSLG SURORQJHG F\FOLQJ RI DQ RVFLOORPHWULF
 QRQLQYDVLYH EORRG SUHVVXUH PRQLWRU FXII KDV EHHQ DVVRFLDWHG ZLWK DQ\ RU DOO RI
WKHIROORZLQJLVFKHPLDSXUSXUDRUQHXURSDWK\3HULRGLFDOO\REVHUYHWKHSDWLHQW¶V
OLPE WR PDNH VXUH WKDW WKH FLUFXODWLRQ LV QRW LPSDLUHG IRU D SURORQJHG SHULRG RI
WLPH$OVRPDNHVXUHWKHFXIILVSODFHGDFFRUGLQJWRGLUHFWLRQVLQWKLVPDQXDODQG
WKHFXIIGLUHFWLRQVIRUXVH
:$51,1* 'R QRW SODFH WKH FXII WKH FDWKHWHU RU 6S2 VHQVRU RQ DQ H[WUHPLW\
 EHLQJXVHGIRULQWUDYHQRXVLQIXVLRQRUDQ\DUHDZKHUHFLUFXODWLRQLVFRPSURPLVHG
RUKDVWKHSRWHQWLDOWREHFRPSURPLVHG
:$51,1* $V ZLWK DOO DXWRPDWLFDOO\ LQIODWDEOH EORRG SUHVVXUH GHYLFHV FRQWLQXDO
 FXII PHDVXUHPHQWV FDQ FDXVH LQMXU\ WR WKH SDWLHQW EHLQJ PRQLWRUHG :HLJK WKH
DGYDQWDJHVRIIUHTXHQWPHDVXUHPHQWDQGRUXVHRI&217PRGHDJDLQVWWKHULVNRI
LQMXU\
:$51,1* (QVXUH WKH SDWLHQW LV TXLHW ZLWK PLQLPDO PRYHPHQW GXULQJ 1,%3
 UHDGLQJVPLQLPL]HWKHSDWLHQW¶VVKLYHULQJ
:$51,1* 1HYHU SODFH WKH FXII RQ DQ H[WUHPLW\ EHLQJ XVHG IRU LQWUDYHQRXV
 LQIXVLRQRUDQ\DUHDZKHUHFLUFXODWLRQLVFRPSURPLVHGRUKDVWKHSRWHQWLDOWREH
FRPSURPLVHG1HYHUILW1,%3V\VWHPZLWK/XHU/RFNDGDSWHUV
:$51,1* 1HYHU XVH DQ DGXOW PRQLWRU VHWWLQJ RU FXII IRU DQ 1,%3 PHDVXUHPHQW
 RQDQHRQDWDOSDWLHQW$GXOWLQIODWLRQOLPLWVFDQEHH[FHVVLYHIRUQHRQDWDOSDWLHQWV
HYHQLIDQHRQDWDOFXIILVXVHG

&$87,21 ,Q WKH DXWRPDWLF PRGH WKH PRQLWRU GLVSOD\V UHVXOWV RI WKH ODVW EORRG
SUHVVXUH PHDVXUHPHQW XQWLO DQRWKHU PHDVXUHPHQW VWDUWV ,I D SDWLHQW¶V FRQGLWLRQ
FKDQJHV GXULQJ WKH WLPH LQWHUYDO EHWZHHQ PHDVXUHPHQWV WKH PRQLWRU ZLOO QRW
GHWHFWWKHFKDQJHRULQGLFDWHDQDODUPFRQGLWLRQ

&$87,21 $Q\ H[FHVVLYH SDWLHQW PRWLRQ PD\ FDXVH LQDFFXUDWH PHDVXUHPHQWV RI
QRQLQYDVLYH EORRG SUHVVXUH 0LQLPL]H PRWLRQ WR LPSURYH EORRG SUHVVXUH
PHDVXUHPHQWV

&$87,21'RQRWDSSO\WKHEORRGSUHVVXUHFXIIWRWKHVDPHH[WUHPLW\DVWKHRQH
WRZKLFKWKH6S2VHQVRULVDWWDFKHG&XIILQIODWLRQFDQGLVUXSW6S2PRQLWRULQJ
DQGOHDGWRQXLVDQFHDODUPV

&$87,21 0DNH VXUH WKDW KHDY\ REMHFWV DUH QRW SODFHG RQ WKH FXII KRVH $YRLG
FULPSLQJRUXQGXHEHQGLQJWZLVWLQJRUHQWDQJOHPHQWRIWKHKRVH

1RWH %ORRG SUHVVXUH PHDVXUHPHQWV FDQ EH DIIHFWHG E\ WKH SRVLWLRQ RI WKH SDWLHQW WKH
SDWLHQW¶VSK\VLRORJLFDOFRQGLWLRQDQGRWKHUIDFWRUV

1RWH %ORRGSUHVVXUHPHDVXUHPHQWVGHWHUPLQHG ZLWKWKH 0PRQLWRUDUHHTXLYDOHQWWR
WKRVH REWDLQHG E\ D WUDLQHG REVHUYHU XVLQJ WKH FXIIVWHWKRVFRSH DXVFXOWDWRU\
PHWKRGZLWKLQWKHOLPLWVSUHVFULEHGE\WKH$PHULFDQ1DWLRQDO6WDQGDUGIRUPDQXDO
HOHFWURQLFDQGDXWRPDWHGVSK\JPRPDQRPHWHUV


*HQHUDO
7KH PRQLWRU SHUIRUPV 1RQ,QYDVLYH %ORRG 3UHVVXUH PHDVXUHPHQWV XVLQJ WKH
RVFLOORPHWULFPHDVXULQJWHFKQLTXH$PRWRUL]HGSXPSLQIODWHVWKHFXIIWRLQLWLDOO\EORFNLQJ
WKHIORZRIEORRGLQWKHH[WUHPLW\7KHQXQGHUPRQLWRUFRQWUROWKHSUHVVXUHLQWKHFXIILV
JUDGXDOO\ UHGXFHG ZKLOH D SUHVVXUH WUDQVGXFHU GHWHFWV DLU SUHVVXUH DQG WUDQVPLWV D
VLJQDOWRWKH1,%3FLUFXLWU\ 

:KHQWKHFXIISUHVVXUHLVVWLOODERYHV\VWROLFSUHVVXUHVPDOOSXOVHVRURVFLOODWLRQVLQWKH
FXII SUHVVXUH EHJLQ WR EH VHQVHG E\ WKH WUDQVGXFHU $V WKH FXII FRQWLQXHV WR GHIODWH
RVFLOODWLRQ DPSOLWXGH LQFUHDVHV WR D PD[LPXP DQG WKHQ GHFUHDVHV :KHQ PD[LPXP
RVFLOODWLRQDPSOLWXGHRFFXUVWKHFXIISUHVVXUHDWWKDWWLPHLVPHDVXUHGDVPHDQDUWHULDO
SUHVVXUH 0$3 7KHV\VWROLFDQGGLDVWROLFSUHVVXUHVDUHFDOFXODWHGEDVHGRQDQDO\VLVRI
WKHRVFLOODWLRQDPSOLWXGHSURILOH

2VFLOORPHWULF0HWKRG
7KHEORRGSUHVVXUHYDOXHVDUHGHWHUPLQHGE\PHDVXULQJWKHVPDOORVFLOODWLRQV FKDQJHV 
LQ WKH FXII SUHVVXUH FDXVHG E\ WKH KHDUW¶V FRQWUDFWLRQV DV WKH SUHVVXUH LQ WKH FXII LV
UHOHDVHG 0HGLDQD¶V PHDVXUHPHQW WHFKQRORJ\ XWLOL]HV D XQLTXH GHIODWLRQ WHFKQLTXH
'\QDPLF /LQHDU 'HIODWLRQ 7KLV FXII GHIODWLRQ WHFKQLTXH DOORZV WKH 0HGLDQD PRQLWRU WR
PHDVXUHHDFKVPDOOFKDQJHLQWKHFXIISUHVVXUHRVFLOODWLRQVWKDWGLUHFWO\FRUUHVSRQGWR
WKHPHDVXUHPHQW¶VV\VWROLFPHDQDQGGLDVWROLFEORRGSUHVVXUHYDOXHV
7KHFXIILVILUVWLQFUHDVHGLQSUHVVXUHXQWLOLWUHDFKHVDSUHVVXUHDERYHDUWHULDORFFOXVLRQ
$VWKHFXIIVWDUWVWRGHIODWHWKHSXOVHUDWHRIWKHSDWLHQWLVGHWHUPLQHGDQGWKHGHIODWLRQ
VSHHGRIWKHFXIILVPRGLILHGWRFUHDWHDSDWLHQWVSHFLILFGHIODWLRQVSHHG$VWKHSUHVVXUH
GHFUHDVHVVPDOOFXIISUHVVXUHRVFLOODWLRQV DUHUHFRUGHGWKDWFRUUHVSRQGWRWKH DSSOLHG
SUHVVXUH RI WKH EORRG XQGHU WKH
FXIIDVWKHKHDUWFRQWUDFWV7KHVH
RVFLOODWLRQV LQFUHDVH LQ VWUHQJWK
DV WKH FXII SUHVVXUH DSSURDFKHV
WKHV\VWROLFEORRGSUHVVXUHYDOXH
$ VXGGHQ LQFUHDVH LQ RVFLOODWLRQ
DPSOLWXGH LQGLFDWHV WKDW WKH
SDWLHQW¶V V\VWROLF EORRG SUHVVXUH
LV QRZ DEOH WR SXVK EORRG
FRPSOHWHO\ WKURXJK EHQHDWK WKH
FXII 7KH RVFLOODWLRQ DPSOLWXGH
FRQWLQXHV WR LQFUHDVH DV WKH
SUHVVXUH LQ WKH FXII LV GHFUHDVHV
XQWLO WKH PHDQ EORRG SUHVVXUH
YDOXH LV UHDFKHG 7KH RVFLOODWLRQ
VWUHQJWK WKHQ VWDUWV WR GLPLQLVK
DQGILQDOO\GURSRIIDVWKHGLDVWROLF
EORRGSUHVVXUHYDOXHLVUHDFKHG

7KHRVFLOORPHWULFPHWKRGGRHVQRWGHWHUPLQHDQLQVWDQWDQHRXVEORRGSUHVVXUHUHDGLQJ
OLNHWKHDXVFXOWDWRU\PHWKRGHPSOR\LQJDPLFURSKRQHW\SHDXWREORRGSUHVVXUHPRQLWRU
EXW DV GHVFULEHG DERYH GHWHUPLQHV EORRG SUHVVXUH IURP DQ XQLQWHUUXSWHG FKDQJLQJ
FXUYHZKLFKPHDQVWKDWWKHRVFLOORPHWULFPHWKRGLVQRWHDVLO\HIIHFWHGE\H[WHUQDOQRLVH
DQGHOHFWURVXUJLFDOLQVWUXPHQWV

1RWH7KLVHTXLSPHQWLVVXLWDEOHIRUXVHLQWKHSUHVHQFHRIHOHFWURVXUJHU\ 



6HWXS&RQQHFWLRQV
0HDVXUHWKHSDWLHQW¶VOLPEDQGVHOHFWDSURSHUVL]HFXII$VDJHQHUDOUXOHFXIIZLGWK
VKRXOGVSDQDSSUR[LPDWHO\WZRWKLUGVRIWKHGLVWDQFHEHWZHHQWKHSDWLHQW¶VHOERZDQG
VKRXOGHU
&RQQHFWWKHFXIIKRVHWRWKHFRQQHFWRURQWKHPRQLWRU¶VULJKWSDQHODQGWXUQWRULJKWWR
ORFN VHH)LJXUH 
&RQQHFWDFXIIWRWKHFXIIKRVHDQGWXUQWKHFRQQHFWRU
WR ULJKW WR ORFN WKH KRVHV WRJHWKHU )LUP FRQQHFWLRQ
PXVWEHPDGH
:UDS WKH FXII DURXQG D KDUH DUP RU DURXQG DQ DUP FRYHUHG LQ WKLQ FORWKLQJ 7KLFN
FORWKLQJ RU D UROOHG XS VOHHYH ZLOO FDXVH D PDMRU GLVFUHSDQF\ LQ WKH EORRG SUHVVXUH
UHDGLQJ
:UDS WKH FXII DURXQG WKH SDWLHQW¶V DUP VR WKDW WKH
FHQWHURIWKHFXII¶VUXEEHUEODGGHUVLWVRQWKHDUWHU\RI
WKH XSSHU DUP 7KH KRVH VKRXOG EH EURXJKW RXW IURP
WKH SHULSKHUDO VLGH ZLWKRXW EHQGLQJ 7KH %UDFKLDO
DUWHU\ LV ORFDWHG RQ WKH LQVLGH RI WKH SDWLHQW¶V XSSHU
DUP $WWKLVWLPHFKHFNWKDWWKHLQGH[OLQHRQWKHHGJH
RI WKH FXII VLWV LQVLGH WKH UDQJH 8VH D GLIIHUHQW VL]HG
FXII LI WKH LQGH[ OLQH LV RXWVLGH RI WKH UDQJH EHFDXVH
WKLV ZLOO FDXVH D PDMRU GLVFUHSDQF\ LQ EORRG SUHVVXUH
UHDGLQJ 
&$87,21 7KH DGXOW FXII VKRXOG EH ZUDSSHG DURXQG WKH DUP WLJKWO\ HQRXJK VR
WKDWRQO\WZRILQJHUVFDQEHLQVHUWHGXQGHULWDERYHDQGEHORZWKHFXII

0DLQWDLQ WKH KHLJKW RI WKH FXIIZUDSSHG XSSHU DUP DUWHU\ WR WKDW RI WKH KHDUW¶V ULJKW
YHQWULFOHGXULQJPHDVXUHPHQW
)ROORZWKHFXIIGLUHFWLRQVIRUXVHZKHQDSSO\LQJWKHFXIIWRWKHDUP

1RWH 2EWDLQLQJ 1,%3 UHDGLQJV FDQ EH PRUH GLIILFXOW LQ SDWLHQWV ZLWK DUUK\WKPLDV 7KHVH
DUUK\WKPLDV LQFUHDVH WKH EHDWWREHDW SUHVVXUH IOXFWXDWLRQV ZKLFK LQFUHDVHV WKH
YDULDELOLW\RIWKH1,%3UHDGLQJV7HPSRUDULO\YHULI\SUHVVXUHXVLQJDQRWKHUPHWKRG
LILWEHFRPHVGLIILFXOWWRREWDLQUHDGLQJVLQWKHSUHVHQFHRIDUUK\WKPLDV

7DEOH&XII6L]H
 0RGHO1XPEHU $UPFLUFXPIHUHQFH FP 
1HRQDWH &XII1R WR
&XII1R WR
&XII1R WR
&XII1R WR
3HGLDWULF +(0&6 WR
$GXOW +(0&5 WR
+(0&/  WR 
+(0&; WR

1,%30HDVXUHPHQW0RGHV
%ORRGSUHVVXUHPHDVXUHPHQWVFDQEHPDGHLQWKUHHPRGHV

z 0$18$/PRGH6LQJOHPHDVXUHPHQWRIV\VWROLFGLDVWROLFPHDQDUWHULDOSUHVVXUH
z $XWRPDWLF $872 PRGH0HDVXUHPHQWVDWSUHVHWLQWHUYDOV
z &RQWLQXRXV &217 PRGH$VPDQ\PHDVXUHPHQWVDV SRVVLEOH ZLWKLQ DPLQXWH
SHULRG


7R,QLWLDWH0$18$/0HDVXUHPHQW0RGH

3UHVVWKH1,%36WDUW6WRS%XWWRQ

$VLQJOHEORRGSUHVVXUHPHDVXUHPHQWZLOOEHPDGH7KHPHDVXUHPHQWZLOOEHGLVSOD\HG
IRUPLQXWHVXQOHVVDQRWKHUPHDVXUHPHQWLVLQLWLDWHG$PDQXDO1,%3UHDGLQJFDQEH
REWDLQHG LQ $872 PRGH E\ SUHVVLQJ 1,%3 6WDUW6WRS %XWWRQ EHWZHHQ WZR $872
PHDVXUHPHQWVZLWKRXWWKHFDQFHOODWLRQRI$872PRGH

7R,QLWLDWH$XWRPDWLF $872 0HDVXUHPHQW0RGH

 6HOHFW WKH GHVLUHG DXWRPDWLFPRGH LQWHUYDO IURP 1,%3 0HQX DFFHVVHG YLD WKH 1,%3
QXPHULFDO DUHD VHH 7DEOH   7KH LQLWLDO PHDVXUHPHQW ZLOO VWDUW DXWRPDWLFDOO\ LQ D
VHOHFWHGLQWHUYDO

$Q1,%3UHDGLQJFDQEHFDQFHOOHGE\SUHVVLQJWKH1,%36WDUW6WRS%XWWRQGXULQJWKH
$872PHDVXUHPHQWV

1RWH:KHQWKHWLPHLQWHUYDOLVVHWWRPLQXWHWKHLQLWLDOPHDVXUHPHQWZLOODXWRPDWLFDOO\
VWDUWDIWHUVHFRQGVRULWFDQEHDFWLYDWHGE\SUHVVLQJWKH1,%36WDUW6WRS%XWWRQ
DIWHU VHOHFWLQJ  PLQXWH 7KHQ WKH PHDVXUHPHQW LQWHUYDO ZLOO EH DXWRPDWLFDOO\
FRQYHUWHGWR2IIDIWHUPLQXWHVHODSVHG

7KH1,%3QXPHULFDODUHD ZLOO GLVSOD\WKH 1,%3$XWR 0RGH,QWHUYDODQG1,%3(ODSVHG
7LPH,FRQ7KHLQWHUYDOLVWKHWLPHIURPZKHQRQHPHDVXUHPHQWVWDUWVWRZKHQWKHQH[W
PHDVXUHPHQW VWDUWV 7KH PHDVXUHPHQW YDOXH ZLOO EH GLVSOD\HG XQWLO DQRWKHU
PHDVXUHPHQW VWDUWV :KHQ $872 PRGH LV FDQFHOOHG WKH ODVW PHDVXUHPHQW ZLOO EH
GLVSOD\HGIRUPLQXWHV

,Q $872 PRGH WKH PRQLWRU DWWHPSWV WR PHHW WKH UHTXLUHPHQW RI 6953 6DIH 9HQRXV
5HWXUQ 3UHVVXUH  DV ORQJ DV VWDUWLQJ D QHZ UHDGLQJ GRHV QRW YLRODWH WKH UHTXLUHPHQW RI
EHLQJVHFRQGVEHORZ6953EHWZHHQUHDGLQJV$QHZEORRGSUHVVXUHUHDGLQJZLOOQRW
VWDUWXQWLOWKHVHFRQGSHULRGKDVHODSVHG:KHQ&217RUPLQXWHDUHVHOHFWHGLQWKH
1,%3 0HQX WKLV 6953 FDQ EH VKRUWHQHG RYHU  VHFRQGV VLQFH &217 LV WKH LQWHQVLYH
PHDVXUHPHQW GXULQJ WKH VKRUW WHUP ZKLFK LV  PLQXWHV DQG  PLQXWH LV WKH DXWR
PHDVXUHPHQWGXULQJWKHVKRUWWHUPZKLFKLVPLQXWHV

7R,QLWLDWH&RQWLQXRXV &217 0HDVXUHPHQW0RGH

<RXPD\SUHVVWKH1,%36WDUW6WRS%XWWRQDQGKROGLWIRUDWOHDVWVHFRQGVWRDFWLYDWH
WKH FRQWLQXRXV PHDVXUHPHQW 7KH LQLWLDO PHDVXUHPHQW ZLOO DXWRPDWLFDOO\ VWDUWV DIWHU 
VHFRQGV RU LW FDQ EH DOVR DFWLYDWHG E\ SUHVVLQJ WKH 1,%3 6WDUW6WRS %XWWRQ DIWHU
LQLWLDWLQJ &RQW 7KH PHDVXUHPHQW LQWHUYDO ZLOO DXWRPDWLFDOO\ EH FRQYHUWHG WR 2II DIWHU 
PLQXWHVHODSVHG$OVRLIWKH1,%36WDUW6WRS%XWWRQLVSUHVVHGGXULQJ&217PRGHWKH
PHDVXUHPHQWZLOOEHFDQFHOHGDQGWKHLQWHUYDOZLOOEHFRQYHUWHGWR2II

7R6WRS%ORRG3UHVVXUH0HDVXUHPHQWV

<RXPD\SUHVVWKH1,%36WDUW6WRS%XWWRQDWDQ\WLPHWRVWRSWKHFXUUHQWPHDVXUHPHQW
DQGGHIODWHWKHFXII,IDQDXWRPDWLFPHDVXUHPHQWLVXQGHUZD\WKHQH[WPHDVXUHPHQWZLOO
VWDUWDWWKHQH[WLQWHUYDODIWHUWKHFXUUHQWPHDVXUHPHQWVWRSV



'HVFULSWLRQRI1,%30HQX)XQFWLRQV

                 






                 

 1,,%3LFRQ  6\VWROLFSUHVVXUHYDOXH
 1,%3XQLW  0$3YDOXH 
 1,%3DXWRPRGHLQWHUYDO  ,QLWLDOSUHVVXUHYDOXH
  1,%3HODSVHGWLPH  'LDVWROLFSUHVVXUHYDOXH 
    
)LJXUH1,%3'LVSOD\

7DEOH1,%30HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
1,%30(18
$XWRPDWLF0RGH,QWHUYDO 2IIPLQPLQPLQPLQPLQPLQ 
PLQPLQPLQ
,QLWLDO,QIODWH3UHVVXUH  PP+J 
$GXOWSHGLDWULF 
 PP+J  1HRQDWDO 
1,%38QLW PP+JN3D
6<6$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
0$3$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
',$$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
1,%3$ODUP,QKLELWLRQ  2Q2II
5HWXUQ 

1RWH ,QLWLDO ,QIODWH 3UHVVXUHV VKRZQ DERYH DUH IRU $GXOW SDWLHQW PRGH ,Q RUGHU WR VHW
DODUPOLPLWVWR1HRQDWDOPRGHFKDQJH3DWLHQWPRGHYLDWKH6HWXS0HQX

1RWH7KH1,%3XQLWFDQRQO\EHFKDQJHGE\DXWKRUL]HGSHUVRQQHOYLDWKH6HUYLFH0HQX

,QLWLDO,QIODWH3UHVVXUH
7KHLQIODWLQJSUHVVXUHFDQEHVHWIURPWRPP+JIRUDGXOWDQGSHGLDWULFRUIURP
WRPP+JIRUQHRQDWDO

1,%3$ODUP,QKLELWLRQ
:KHQWKHOLPLWDODUPLQKLELWLRQLVVHWWR2QWKHDXGLEOHDODUPIRU1,%3V\VWROLF0$3DQG
GLDVWROLFOLPLWYLRODWLRQLVLQKLELWHG










7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN


6S2021,725,1*

:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH RQO\
 DFFHVVRULHVPDQXIDFWXUHGE\&RYLGLHQRUVXSSOLHGE\0HGLDQD8VHDFFHVVRULHV
DFFRUGLQJWRWKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVHDQG\RXUIDFLOLW\¶VVWDQGDUGV
:$51,1* 7LVVXH GDPDJH FDQ EH FDXVHG E\ LQFRUUHFW DSSOLFDWLRQ RU XVH RI DQ
 6S2 VHQVRU +DUP FDQ EH FDXVHG IRU H[DPSOH E\ ZUDSSLQJ WKH VHQVRU WRR
WLJKWO\E\DSSO\LQJVXSSOHPHQWDOWDSHRUE\OHDYLQJDVHQVRURQWRRORQJLQRQH
SODFH ,QVSHFW WKH VHQVRU VLWH DV GLUHFWHG LQ WKH VHQVRU GLUHFWLRQV IRU XVH WR
HQVXUHVNLQLQWHJULW\FRUUHFWSRVLWLRQLQJDQGDGKHVLRQRIWKHVHQVRU
:$51,1*'RQRWXVHGDPDJHG6S2VHQVRUV'RQRWXVHDQ6S2VHQVRUZLWK
 H[SRVHG RSWLFDO FRPSRQHQWV 'R QRW LPPHUVH VHQVRU FRPSOHWHO\ LQ ZDWHU
VROYHQWV RU FOHDQLQJ VROXWLRQV EHFDXVH WKH VHQVRU DQG FRQQHFWRUV DUH QRW
ZDWHUSURRI'RQRWVWHULOL]H6S2VHQVRUVE\LUUDGLDWLRQVWHDPRUHWK\OHQHR[LGH
5HIHU WR WKH FOHDQLQJ LQVWUXFWLRQV LQ WKH GLUHFWLRQV IRU XVH IRU UHXVDEOH 6S2
VHQVRUV
:$51,1*,QDFFXUDWHPHDVXUHPHQWVPD\EHFDXVHGE\
 z LQFRUUHFWVHQVRUDSSOLFDWLRQRUXVH
z VLJQLILFDQWOHYHOVRIG\VIXQFWLRQDOKHPRJORELQ
VXFKDVFDUER[\KHPRJORELQRUPHWKHPRJORELQ 
z LQWUDYDVFXODUG\HVVXFKDVLQGRF\DQLQHJUHHQRUPHWK\OHQHEOXH
z H[SRVXUH WR H[FHVVLYH LOOXPLQDWLRQ VXFK DV VXUJLFDO ODPSV HVSHFLDOO\
RQHV ZLWK D [HQRQ OLJKW VRXUFH  ELOLUXELQ ODPSV IOXRUHVFHQW OLJKWV
LQIUDUHGKHDWLQJODPSVRUGLUHFWVXQOLJKW
z H[FHVVLYHSDWLHQWPRYHPHQW
z KLJKIUHTXHQF\HOHFWURVXUJLFDOLQWHUIHUHQFHDQGGHILEULOODWRUV
z YHQRXVSXOVDWLRQV
z SODFHPHQWRIDVHQVRURQDQH[WUHPLW\ZLWKDEORRGSUHVVXUHFXIIDUWHULDO
FDWKHWHURULQWUDYDVFXODUOLQH
z SDWLHQWFRQGLWLRQVVXFKDVK\SRWHQVLRQVHYHUHYDVRFRQVWULFWLRQVHYHUH
DQHPLDK\SRWKHUPLDFDUGLDFDUUHVWRUVKRFN
z DUWHULDORFFOXVLRQSUR[LPDOWRWKHVHQVRU
z HQYLURQPHQWDOFRQGLWLRQV
z XQVSHFLILHGOHQJWKRIWKHH[WHQVLRQFDEOH
:$51,1*'RQRWDWWDFKDQ\FDEOHWRWKHVHQVRUSRUWFRQQHFWRUWKDWLVLQWHQGHG
 IRUFRPSXWHUXVH

&$87,217KHVHQVRUGLVFRQQHFWHUURUPHVVDJHDQGDVVRFLDWHGDODUPLQGLFDWHWKH
VHQVRULVHLWKHUGLVFRQQHFWHGRUWKHZLULQJLVIDXOW\&KHFNWKHVHQVRUFRQQHFWLRQ
DQGLIQHFHVVDU\UHSODFHWKHVHQVRUH[WHQVLRQFDEOHRUERWK

&$87,21 5HXVDEOH VHQVRUV PD\ EH XVHG RQ WKH VDPH VLWH IRU D PD[LPXP RI 
KRXUVSURYLGHGWKHVLWHLVLQVSHFWHGURXWLQHO\WRHQVXUHVNLQLQWHJULW\DQGFRUUHFW
SRVLWLRQLQJ




*HQHUDO
7KH PRQLWRU XVHV SXOVH R[LPHWU\ WR PHDVXUH IXQFWLRQDO R[\JHQ VDWXUDWLRQ LQ WKH EORRG
%HFDXVH D PHDVXUHPHQW RI 6S2 LV GHSHQGHQW XSRQ OLJKW IURP WKH 6S2 VHQVRU
H[FHVVLYH DPELHQW OLJKW FDQ LQWHUIHUH ZLWK WKLV PHDVXUHPHQW 6S2 DQG 3XOVH UDWH DUH
XSGDWHG HYHU\ VHFRQG 7KLV PRQLWRU PHDVXUHV IXQFWLRQDO VDWXUDWLRQ  R[\JHQDWHG
KHPRJORELQ H[SUHVVHG DV D SHUFHQWDJH RI WKH KHPRJORELQ WKDW FDQ WUDQVSRUW R[\JHQ ,W
GRHV QRW GHWHFW VLJQLILFDQW DPRXQWV RI G\VIXQFWLRQDO KHPRJORELQ VXFK DV
FDUER[\KHPRJORELQRUPHKWHPRJORELQ 

)XQFWLRQDOYHUVXV)UDFWLRQDO6DWXUDWLRQ
7KLV PRQLWRU PHDVXUHV IXQFWLRQDO VDWXUDWLRQ ² R[\JHQDWHG KHPRJORELQ H[SUHVVHG DV D
SHUFHQWDJH RI WKH KHPRJORELQ WKDW FDQ WUDQVSRUW R[\JHQ ,W GRHV QRW GHWHFW VLJQLILFDQW
DPRXQWVRIG\VIXQFWLRQDOKHPRJORELQVXFKDVFDUER[\KHPRJORELQRUPHWKHPRJORELQ,Q
FRQWUDVW KHPR[LPHWHUV VXFK DV WKH ,/ UHSRUW IUDFWLRQDO VDWXUDWLRQ ² R[\JHQDWHG
KHPRJORELQH[SUHVVHGDVDSHUFHQWDJHRIDOOPHDVXUHGKHPRJORELQLQFOXGLQJPHDVXUHG
G\VIXQFWLRQDOKHPRJORELQ7RFRPSDUHIXQFWLRQDOVDWXUDWLRQPHDVXUHPHQWVWRWKRVHIURP
DQ LQVWUXPHQW WKDW PHDVXUHV IUDFWLRQDO VDWXUDWLRQ IUDFWLRQDO PHDVXUHPHQWV PXVW EH
FRQYHUWHGDVIROORZV

IXQFWLRQDOVDWXUDWLRQ                  IUDFWLRQDOVDWXUDWLRQ
î
± FDUER[\KHPRJORELQPHWKHPRJORELQ 

0HDVXUHGYHUVXV&DOFXODWHG6DWXUDWLRQ
:KHQ VDWXUDWLRQ LV FDOFXODWHG IURP D EORRG JDV SDUWLDO SUHVVXUH RI R[\JHQ 32  WKH
FDOFXODWHG YDOXH PD\ GLIIHU IURP WKH 6S2 PHDVXUHPHQW RI WKH PRQLWRU 7KLV XVXDOO\
RFFXUVEHFDXVHWKHFDOFXODWHGVDWXUDWLRQZDVQRWDSSURSULDWHO\FRUUHFWHGIRUWKHHIIHFWVRI
YDULDEOHVWKDWVKLIWWKHUHODWLRQVKLSEHWZHHQ32DQGS+WHPSHUDWXUHWKHSDUWLDOSUHVVXUH
RIFDUERQGLR[LGH 3&2 '3*DQGIHWDOKHPRJORELQ

$XWRPDWLF&DOLEUDWLRQ
%HFDXVHOLJKWDEVRUSWLRQE\KHPRJORELQLVZDYHOHQJWKGHSHQGHQWDQGEHFDXVHWKHPHDQ
ZDYHOHQJWKRI/('VYDULHVDQR[LPHWHUPXVWNQRZWKHPHDQZDYHOHQJWKRIWKH2;,0$;
VHQVRU¶VUHG/('WRDFFXUDWHO\PHDVXUH6S27KHZDYHOHQJWKUDQJHRIWKHOLJKWHPLWWHG
DUHQHDUQPDQGQPZLWKWKHHQHUJ\QRWH[FHHGLQJP:'XULQJPRQLWRULQJ
WKH LQVWUXPHQW¶V VRIWZDUH VHOHFWV FRHIILFLHQWV WKDW DUH DSSURSULDWH IRU WKH ZDYHOHQJWK RI
WKDWLQGLYLGXDOVHQVRU¶VUHG/('WKHVHFRHIILFLHQWVDUHWKHQXVHGWRGHWHUPLQH6S2 
$GGLWLRQDOO\ WR FRPSHQVDWH IRU GLIIHUHQFHV LQ WLVVXH WKLFNQHVV WKH OLJKW LQWHQVLW\ RI WKH
VHQVRU¶V/('VLVDGMXVWHGDXWRPDWLFDOO\



6HWXS&RQQHFWLRQV

:KHQVHOHFWLQJDVHQVRUFRQVLGHUWKHSDWLHQW¶VZHLJKWDQGDFWLYLW\DGHTXDF\RISHUIXVLRQ
DYDLODELOLW\RIVHQVRUVLWHVQHHGIRUVWHULOLW\DQGDQWLFLSDWHGGXUDWLRQRIPRQLWRULQJ5HIHU
WR 7DEOH  RU FRQWDFW 7\FR +HDOWKFDUH ,QF RU 0HGLDQD VDOHV GHSDUWPHQW IRU RUGHULQJ
LQIRUPDWLRQ

6HOHFWWKHSURSHUVHQVRUIRUWKHSDWLHQW 
&RQQHFW WKH H[WHQVLRQ FDEOH WR WKH 6S2 FRQQHFWRU RQ WKH PRQLWRU¶V ULJKW SDQHO DQG
ORFNLW VHH)LJXUH 
&RQQHFWWKHVHQVRUWRWKHH[WHQVLRQFDEOHDQGORFNLW
&DUHIXOO\DSSO\WKHVHQVRUWRWKHSDWLHQWDVGHVFULEHG
LQWKHVHQVRUGLUHFWLRQVIRUXVH2EVHUYHDOOZDUQLQJV
DQGFDXWLRQVLQWKHGLUHFWLRQVIRUXVH

1RWH5HIHUWRGLUHFWLRQVIRUXVHWRHQVXUHWKHSURSHUSODFHPHQWIRUYDULRXVW\SHVRI6S2
VHQVRUV

1RWH3HULRGLFDOO\FKHFNWRVHHWKDWWKHVHQVRUUHPDLQVSURSHUO\SRVLWLRQHGRQWKHSDWLHQW
DQGWKDWVNLQLQWHJULW\LVDFFHSWDEOH5HIHUWRWKHVHQVRUGLUHFWLRQVIRUXVH

7DEOH6S26HQVRUV
 6HQVRU 0RGHO 3DWLHQW6L]H
)RU 6S2UHXVDEOHVHQVRU<0 <0 !NJ
0HGLDQD 6S2GLVSRVDEOHVHQVRU<0 <0 NJRU!NJ
0RGXOH 6S2GLVSRVDEOHVHQVRU<0 <0 !NJ
6S2GLVSRVDEOHVHQVRU<0 <0 WRNJ
6S2GLVSRVDEOHVHQVRU<0 <0 WRNJ 
)RU 2;,0$;R[\JHQWUDQVGXFHU 6WHULOHVLQJOH 0$;1 RU!NJ
1HOOFRU XVHRQO\  0$;, WRNJ
0RGXOH 0$;3 WRNJ
0$;$ !NJ
0$;$/ !NJ
0$;5 !NJ
2;,0$;2[LEDQGŠR[\JHQWUDQVGXFHU 2;,$1 RU!NJ
5HXVDEOHZLWKGLVSRVDEOHQRQVWHULOH 2;,3, WRNJ
DGKHVLYH 
2;,0$;'XUDVHQVRUŠ2[\JHQWUDQVGXFHU '6$ !NJ
5HXVDEOHQRQVWHULOH 
2;,0$;2[L&OLTŠR[\JHQWUDQVGXFHUV 3 WRNJ 
6WHULOHVLQJOHXVHRQO\  1 RU!NJ
, WRNJ
$ !NJ
2;,0$;'XUD<ŠPXOWLVLWHR[\JHQ '<6 !NJ
WUDQVGXFHU   
5HXVDEOHQRQVWHULOH   
)RUXVHZLWKWKH'XUD<VHQVRU '<6( !NJ
(DUFOLS 5HXVDEOHQRQVWHULOH   
3HGL&KHFN70SHGLDWULFVSRWFKHFNFOLS '<63' WRNJ
5HXVDEOHQRQVWHULOH 
2;,0$;0$;)$67ŠDGKHVLYHUHIOHFWDQFH 0$; !NJ
R[\JHQWUDQVGXFHU )$67



'HVFULSWLRQRI6S20HQX)XQFWLRQV





 



 6S2LFRQ  6S2YDOXH 
 3XOVHDPSOLWXGHLQGLFDWRU  
   
)LJXUH6S2'LVSOD\
3XOVH$PSOLWXGH,QGLFDWRU
7KH SXOVH DPSOLWXGH LQGLFDWRU LV WKH VHJPHQWHG GLVSOD\ ZLWKLQ WKH 6S2 QXPHULFDO DUHD
WKDW VKRZV WKH UHODWLYH VWUHQJWK RI WKH GHWHFWHG SXOVH $ VWURQJHU SXOVH FDXVHV D ODUJHU
DPSOLWXGHLQGLFDWRU

7DEOH6S20HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
6S20(18
&/RFN 2Q2II
$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
6S2$ODUP,QKLELWLRQ  2Q2II
5HWXUQ 

&/RFN
:KHQ&/RFNLVWXUQHGRQLQWKH6S2PHQX&/RFNDXWRPDWLFDOO\EHFRPHVRSHUDWLRQDO
DQ\WLPHDYDOLG(&*VLJQDOLVGHWHFWHGE\WKHPRQLWRU,WLVQRWQHFHVVDU\WRWXUQ&/RFN
RIILIDQ(&*VLJQDOLVQRWDYDLODEOHWKHPRQLWRUKDQGOHVWKLVIXQFWLRQDXWRPDWLFDOO\,IWKH
(&*VLJQDOLVQRLV\RURISRRUTXDOLW\6S2SHUIRUPDQFHPD\EHLPSURYHGE\WXUQLQJ&
/RFN RII &/RFN SURYLGHV (&* V\QFKURQL]DWLRQ IRU PRUH UHOLDEOH VDWXUDWLRQ
PHDVXUHPHQWV$Q(&* 5ZDYH VLJQDOFDQEHXVHGDVDWLPHUHIHUHQFHWRLGHQWLI\WKH
SXOVH DQG V\QFKURQL]H VDWXUDWLRQ PHDVXUHPHQWV &/RFN HQKDQFHV SHUIRUPDQFH ZKLOH
PDLQWDLQLQJUDSLGUHVSRQVHWLPH 

1RWH7KLVPHQXLVIRU1HOOFRU6S2PRGXOHRQO\

6S2$ODUP,QKLELWLRQ 
:KHQ WKH OLPLW DODUP LQKLELWLRQ LV VHW WR 2Q WKH DXGLEOH DODUP IRU 6S2 OLPLW YLRODWLRQ LV
LQKLELWHG




'HVFULSWLRQRI6S2:DYHIRUP0HQX)XQFWLRQV







 6S2ZDYHIRUPLFRQ  6S2ZDYHIRUP
   
)LJXUH6S2:DYHIRUP'LVSOD\

7DEOH6S2:DYHIRUP0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
6S2:$9()2500(18
6ZHHS6SHHG PPVPPVPPV
/DUJH1XPHULF1,%3 
:DYHIRUP0HQX (&*ZDYHIRUP6S2ZDYHIRUP5HVSLUDWLRQZDYHIRUP
(W&2ZDYHIRUP
7UHQG0HQX 7DEXODU7UHQG*UDSKLFDO7UHQG
5HWXUQ 

6ZHHS6SHHG
7KH XVHUVHOHFWDEOH 6ZHHS 6SHHG GHWHUPLQHV WKH VSHHG DW ZKLFK WKH 6S2 ZDYHIRUP
WUDFH PRYHV DFURVV WKH VFUHHQ 6ZHHS 6SHHG FDQ EH VHOHFWHG IURP  PPV 
PPVDQGPPVDQGWKH6S2ZDYHIRUPLVV\QFKURQL]HGZLWKWKH(&*ZDYHIRUP










7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN



5(63,5$7,21021,725,1*

:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH RQO\
 DFFHVVRULHVVXSSOLHGRUUHFRPPHQGHGE\0HGLDQD8VHDFFHVVRULHVDFFRUGLQJWR
WKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVHDQG\RXUIDFLOLW\¶VVWDQGDUGV
:$51,1*6 7KH PRQLWRU GRHV QRW GHWHFW DSQHD ZKHQ WKH UHVSLUDWLRQ VLJQDO LV
 PHDVXUHGE\WUDQVWKRUDFLFLPSHGDQFH
:$51,1* .HHS SDWLHQWV XQGHU FORVH VXUYHLOODQFH ZKHQ PRQLWRULQJ UHVSLUDWLRQ
 5HVSLUDWLRQ VLJQDOV DUH UHODWLYHO\ PRUH VHQVLWLYH WR LQWHUIHUHQFH IURP UDGLDWHG
HOHFWURPDJQHWLF VLJQDOV 7KXV LW LV SRVVLEOH DOWKRXJK XQOLNHO\ WKDW UDGLDWHG
HOHFWURPDJQHWLF VLJQDOV IURP VRXUFHV H[WHUQDO WR WKH SDWLHQW DQG PRQLWRU FDQ
FDXVH LQDFFXUDWH UHVSLUDWLRQ UHDGLQJV 'R QRW UHO\ HQWLUHO\ RQ WKH PRQLWRU
UHVSLUDWLRQ UHDGLQJV IRU SDWLHQW DVVHVVPHQW ,I PHDVXUHG ZDYHIRUPV DUH QRW
DSSURSULDWHUHDGLQJVFKHFNH[WHUQDOFRQGLWLRQVWRHQVXUHWKHUHLVQRHTXLSPHQW
FDXVLQJHOHFWURPDJQHWLFLQWHUIHUHQFH

*HQHUDO
7KH3DWLHQW¶VUHVSLUDWLRQLVGHWHFWHGE\XVLQJWZRRIWKHWKUHHOHDGVRIWKH(&*HOHFWURGHV
DQG FDEOH 5HDOWLPH UHVSLUDWRU\ LQIRUPDWLRQ LV SUHVHQWHG DV D ZDYHIRUP DQG QXPHULF
GDWD,PSHGDQFHUHVSLUDWLRQVRXUFH ,0 
7KHDLUZD\UHVSLUDWLRQPHDVXUHPHQWXVHVJDVHVFRPLQJLQWRWKHDLUZD\DGDSWHULQFDVH
RIWKH&2HTXLSSHG7KHPRQLWRUGHWHFWVUHVSLUDWLRQUDWHE\FRPSXWLQJHDFKEUHDWKF\FOH
IRUPWKHFRQWLQXRXV(W&2ZDYHIRUP$LUZD\UHVSLUDWLRQVRXUFH $: 

6HWXS&RQQHFWLRQV

5HIHUWRWKH(&*0RQLWRULQJVHFWLRQIRUKRZWRDFTXLUHWKHUHVSLUDWLRQVLJQDOE\SDWLHQW
LPSHGDQFHXVLQJWKH(&*HOHFWURGHVOHDGVDQGFDEOH
7KHSHUIRUPDQFHRILPSHGDQFHUHVSLUDWLRQFDQEH LPSURYHGE\ WKHSDUWLFXODUSODFHPHQW
RI WKH /HIW DUP /$  DQG 5LJKW DUP 5$  HOHFWURGHV 6HH 6WDQGDUG (&* HOHFWURGH
SODFHPHQWLQ)LJXUH 
5HIHU WR WKH &DSQRJUDSK\ 0RQLWRULQJ VHFWLRQ WR GHWHFW WKH UHVSLUDWLRQ VLJQDO E\ WKH
DLUZD\DGDSWHULQFDVHWKDWWKH&2HTXLSSHG



'HVFULSWLRQRI5HVSLUDWLRQ0HQX)XQFWLRQV



 

 5HVSLUDWLRQLFRQ  5HVSLUDWLRQYDOXH
 5HVSLUDWLRQVRXUFH  
   
)LJXUH5HVSLUDWLRQ'LVSOD\

7DEOH5HVSLUDWLRQ0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
5(63,5$7,210(18
5HVSLUDWLRQ 2Q2II
5HVSLUDWLRQ6RXUFH $872 $:!,0 $:,0
$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
5HVSLUDWLRQ$ODUP,QKLELWLRQ  2Q2II
5HWXUQ 

5HVSLUDWLRQ
:KHQUHVSLUDWLRQLVVHWWR2Q7KHPHDVXUHPHQWYDOXHIRUUHVSLUDWLRQUDWHDQGUHVSLUDWLRQ
ZDYHIRUPDUHGLVSOD\HGRQWKHVFUHHQ$QGZKHQWKHUHVSLUDWLRQLVVHWWR2IIUHVSLUDWLRQ
UDWHLVQRWPHDVXUHGDQGUHVSLUDWLRQYDOXHLVGLVSOD\HGZLWK³´5HVSLUDWLRQLFRQLVRQO\
GLVSOD\HGZKHQWKHUHVSLUDWLRQLVVHWWR2Q

5HVSLUDWLRQ6RXUFH
8VHU FDQ VHOHFW HLWKHU $: RU ,0 IRU VRXUFH RI WKH UHVSLUDWLRQ UDWH ,I WKH $872 LV
VHOHFWHG WKH PRQLWRU ZLOO DXWRPDWLFDOO\ GULYH WKH UHVSLUDWLRQ UDWH IURP RQH RI WKH
PRQLWRULQJSDUDPHWHUVLQWKLVRUGHURISULRULW\$:DQG,0

1RWH<RXFDQVHOHFW$:DVWKHVRXUFHZKHQ&2PRGXOHLVLQVWDOOHG

5HVSLUDWLRQ$ODUP,QKLELWLRQ
:KHQ OLPLW DODUP LQKLELWLRQ LV VHW WR 2Q WKH DXGLEOH DODUP IRU UHVSLUDWLRQ UDWH OLPLW
YLRODWLRQLVLQKLELWHG


'HVFULSWLRQRI5HVSLUDWLRQ:DYHIRUP0HQX)XQFWLRQV








 5HVSLUDWLRQZDYHIRUPLFRQ  5HVSLUDWLRQZDYHIRUP 
   
)LJXUH5HVSLUDWLRQ:DYHIRUP'LVSOD\

7DEOH5HVSLUDWLRQ:DYHIRUP0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
5(63,5$7,21:$9()2500(18
6ZHHS6SHHG PPVPPVPPV
6L]H $XWR
/DUJH1XPHULF1,%3 
:DYHIRUP0HQX (&*ZDYHIRUP6S2ZDYHIRUP5HVSLUDWLRQZDYHIRUP
(W&2ZDYHIRUP
7UHQG0HQX 7DEXODUWUHQG*UDSKLFDO7UHQG
5HWXUQ 

6ZHHS6SHHG
7KH XVHUVHOHFWDEOH VZHHS VSHHG GHWHUPLQHV WKH VSHHG DW ZKLFK WKH UHVSLUDWLRQ
ZDYHIRUP WUDFH PRYHV DFURVV WKH VFUHHQ 6ZHHS 6SHHG FDQ EH VHOHFWHG IURP 
PPVPPVDQGPPV

6L]H
6L]HDOORZV \RXWRDGMXVWWKH ZDYHIRUPVL]H:KHQWKHVL]HLVVHWWR$XWR7KHPRQLWRU
DXWRPDWLFDOO\GHWHUPLQHVWKHRSWLPDOVL]HRIWKHUHVSLUDWLRQZDYHIRUPWRILWWKHVSDFH










7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN


&$312*5$3+<021,725,1*

:$51,1* (QVXUH WKDW WKH FRPSRQHQWV RI WKH DLUZD\ DUH VHFXUH ,I WKH\
 EHFRPH ORRVH H[WHUQDO DLU PD\ EH VXFNHG LQ WKH WXEH DQG WKH VDPSOLQJ JDV
ZLOOEHGLOXWHGFDXVLQJLQFRUUHFWPHDVXUHPHQWYDOXHV
:$51,1*(QVXUHWKDWVHOHFWLRQRIDYRODWLOHDQHVWKHWLFLVGRQHFDUHIXOO\,IDQ
 LPSURSHUVHOHFWLRQLVPDGHWKHPHDVXUHPHQWYDOXHVPD\EHLQFRUUHFW
:$51,1* 'R QRW XVH DFFHVVRULHV RWKHU WKDQ ZKLFK DUH VSHFLILHG 'LIIHUHQW
 VDPSOLQJ WXEH OHQJWKV RU LQVLGH GLDPHWHUV PD\ KDYH DQ HIIHFW RQ WKH
PHDVXUHPHQW
:$51,1* 7KH PDLQVWUHDPVLGHVWUHDP FDSQRJUDSK\ PRGXOH VKRXOG QRW EH
 XVHGLQWKHSUHVHQFHRIIODPPDEOHDQHVWKHWLFVRURWKHUIODPPDEOHJDVHV8VH
RIWKLVGHYLFHLQVXFKDQHQYLURQPHQWPD\SUHVHQWDQH[SORVLRQKD]DUG
:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH
 RQO\ DFFHVVRULHV VXSSOLHG RU UHFRPPHQGHG E\ 0HGLDQD 8VH DFFHVVRULHV
DFFRUGLQJWR\RXUIDFLOLW\¶VVWDQGDUGVDQGWKHPDQXIDFWXUHU¶VUHFRPPHQGDWLR
Q$OZD\VUHIHUWRWKHPDQXIDFWXUHU¶V'LUHFWLRQVIRU8VHIRULQVWUXFWLRQDERXW
RSHUDWLRQFOHDQLQJDQGUHSODFHPHQW
:$51,1* 'R QRW XVH GHYLFH ZLWKRXW UHFWLI\LQJ D JDV FDOLEUDWLRQ IDLOXUH DV
 FRUUHFWPHDVXUHPHQWUHDGLQJVZLOOQRWEHREWDLQHG
:$51,1*'RQRWXVHGHYLFHRQSDWLHQWVWKDWFDQQRWWROHUDWHWKHZLWKGUDZDO
 RIFFPLQ“FFPLQIURPDLUZD\
ȱ
&$87,21'RQRWRSHUDWHWKH&DSQRVWDWVHQVRUZKHQLWLVZHW'RQRWLPPHUVHWKH
GHYLFHLQZDWHU
ȱ
&$87,21'RQRWRSHUDWHWKH&DSQRVWDWVHQVRULILWDSSHDUVWRKDYHEHHQGDPDJH
RULILWIDLOVWRRSHUDWHSURSHUO\ 
ȱ
&$87,21 ,I WKH SDWLHQW¶V DLUZD\ LV FRQILJXUHG ZLWK D FORVHG VXFWLRQLQJ V\VWHP
PDNH VXUH WKH DLUZD\ DGDSWHU LV SODFHG FORVHG WR WKH VXFWLRQLQJ V\VWHP RQ WKH
YHQWLODWRU VLGH  7KLV ZLOO KHOS HQVXUH WKDW WKH VDPSOLQJ DGDSWHU LV QRW LPSDLUHG
GXULQJDQGDIWHUVXFWLRQLQJ
ȱ
&$87,217KHGLVSRVDEOHDLUZD\DGDSWHUQDVDODQGQDVDORUDOVDPSOLQJFDQQXODV
DQG WKH DLUZD\ DGDSWHU NLW DUH LQWHQGHG IRU VLQJOH SDWLHQW XVH 'R QRW UHXVH RU
VWHULOL]H WKHVH GLVSRVDEOH DGDSWHUV EHFDXVH V\VWHP SHUIRUPDQFH ZLOO EH
FRPSURPLVHG
ȱ
&$87,21'RQRWLQVHUW DQ\REMHFWRWKHUWKDQWKHVLGHVWUHDP VDPSOHFHOOLQWRWKH
LQOHWSRUWRIWKH&2PRGXOH
ȱ
&$87,21 ,QVSHFW WKH PDLQVWUHDP &2 VHQVRU DQG DLUZD\ DGDSWHU FRQQHFWLRQ WR
HQVXUHFRUUHFWSRVLWLRQLQJ
ȱ
&$87,213RVLWLRQVLGHVWUHDPDLUZD\DGDSWHUZLWKWKHWXELQJLQDQXSULJKWSRVLWLRQ
7KLVKHOSNHHSSDWLHQWVHFUHWLRQVIURPSRROLQJLQWRWKHWXELQJ
ȱ
&$87,217RSUHYHQWPRLVWXUHIURPGXULQJLQWRWKHPDLQVWUHDPDLUZD\RULQWRWKH
VLGHVWUHDPDLUZD\DGDSWHUWXELQJGRQRWSODFHWKHDGDSWHULQDJUDYLW\GHSHQGHQW
SRVLWLRQ


ȱ
&$87,21 ,W LV UHFRPPHQGHG WKDW WKH PDLQVWUHDP DLUZD\ DGDSWHU DQG WKH
VLGHVWUHDP DLUZD\ DGDSWHU EH UHPRYHG IURP WKH FLUFXLW ZKHQHYHU DQ DHURVROL]HG
PHGLFDWLRQ LV GHOLYHUHG 7KH LQFUHDVHG YLVFRVLW\ RI WKH PHGLFDWLRQ PD\
FRQWDPLQDWHWKHVHQVRUZLQGRZVFDXVLQJWKHVHQVRUWRIDLOSUHPDWXUHO\

*HQHUDO
7KH PRQLWRU FDSQRJUDSK\ RSWLRQ VXSSRUWV PDLQVWUHDP DQG VLGHVWUHDP JDV DQDO\VLV
GHVLJQHG WR PHDVXUH WKH FRQFHQWUDWLRQ RI FDUERQ GLR[LGH LQ D JDV PL[WXUH DQG WR DLG LQ
GHWHUPLQLQJ WKH SDWLHQW¶V YHQWLODWRU\ FLUFXODWRU\ DQG PHWDEROLF VWDWXV 0DLQVWUHDP
QRQGLYHUWLQJ  DQG VLGHVWUHDP GLYHUWLQJ  FDSQRJUDSK\ DUH KLJKO\ DFFXUDWH PHWKRGV RI
PHDVXULQJ UHVSLUDWRU\ JDV YDOXHV :KHQ PRQLWRULQJ FDSQRJUDSK\ WKH PRQLWRU
DXWRPDWLFDOO\ FRPSHQVDWHV IRU WKH DPELHQW EDURPHWULF SUHVVXUH WR HQVXUH DFFXUDWH
UHDGLQJV

6HWXS&RQQHFWLRQV

7KH PRQLWRU KDV RQH FDSQRJUDSK\ VHQVRU UHFHSWDFOH ZKLFK PD\ EH XVHG IRU D
PDLQVWUHDPFDSQRJUDSK\VHQVRURUDVLGHVWUHDPFDSQRJUDSK\VHQVRU

1RWH &DSQRJUDS\ LV QRW DQDO\]HG GXULQJ XQLW ZDUPXS KRZHYHU WKH FDSQRJUDSK\ GRHV
GLVSOD\WRLQGLFDWHWKDWWKHPRQLWRULVZRUNLQJSURSHUO\

1RWH 7KH W\SLFDO LQLWLDO ZDUPXS SHULRG FDQ WDNH XS WR WZR PLQXWHV 7KLV WLPH YDULHV
EDVHGRIWKHWHPSHUDWXUHRIWKHVHQVRUDWWKHVWDUWRIWKHLQLWLDOZDUPXS

1RWH7KHDLUZD\DGDSWHUPD\UHTXLUHFOHDQLQJRUUHSODFHPHQWLIWKHFDSQRJUDSKLVXVHG
RQSDWLHQWVWKDWHPLWH[FHVVLYHPXFRXV




0DLQVWUHDP2SHUDWLRQ
0DLQVWUHDPPRQLWRULQJXVHVDQH[WHUQDOVHOIFDOLEUDWLQJ&2VHQVRUWRHQVXUHFRQWLQXRXV
PRQLWRULQJZLWKRXWLQWHUUXSWLRQRIFRQQHFWLRQ5HXVDEOHOLJKWZHLJKWRUVLQJOHXVHDLUZD\
DGDSWHUVDUHDYDLODEOHIRUERWKDGXOWDQGQHRQDWDO ORZGHDGVSDFH SDWLHQWV5HVSLUDWLRQ
FDQEHPRQLWRUHGYLDDQDLUZD\DGDSWHUDQGHQGRWUDFKHDORUWUDFKHRVWRP\WXEHXVLQJWKH
PDLQVWUHDPIXQFWLRQRIWKHPRGXOH

7KH H[WHUQDO FDSQRJUDSK\ GHYLFH LQFOXGHV D VPDOO OLJKWZHLJKW VHQVRU WKDW FRQWLQXRXVO\
PHDVXUHV WKH HQGWLGDO DQG PLQLPXP FDUERQ GLR[LGH OHYHOV LQ WKH SDWLHQW¶V DLUZD\ 7KH
VHQVRUKHDGFRQWDLQVDVPDOOLQIUDUHGWUDQVGXFHUWKDWDFFXUDWHO\PHDVXUHVWKH&2LQWKH
DLUZD\7KHVHQVRULVFRQQHFWHGWRWKHDLUZD\E\DGLVSRVDEOHRUUHXVDEOHDLUZD\DGDSWHU
7KHVHDGDSWHUVDUHDYDLODEOHLQDGXOWDQGQHRQDWDOVL]H



 <SLHFH  (OERZ
 $LUZD\DGDSWHU  0DLQVWUHDP&2VHQVRU
 3DWLHQWFRQQHFWRU $GXOW3HGL   
   

)LJXUH&RQQHFWLRQIRUPDLQVWUHDP



6LGHVWUHDP2SHUDWLRQ
6LGHVWUHDP PRQLWRULQJ XVHV DQ H[WHUQDO VLGHVWUHDP VHQVRU WKDW SOXJ LQWR WKH
FDSQRJUDSK\ SRUW RQ WKH PRQLWRU $GXOW SHGLDWULF RU LQIDQW VDPSOLQJ OLQHV DUH WKHQ
SOXJJHG LQWR WKH VHQVRU UHFHSWDFOH 5HVSLUDWLRQ FDQ EH PRQLWRUHG IRU LQWXEDWHG RU QRQ
LQWXEDWHG SDWLHQWV YLD DQ DLUZD\ DGDSWHU QDVDO FDQQXOD RU QDVDORUDO FDQQXOD XVLQJ WKH
VLGHVWUHDPIXQFWLRQRIWKHPRGXOH6LGHVWUHDPPRQLWRULQJGLYHUWVSDWLHQWJDVHVDWDUDWH
RIPOPLQ “POPLQ 

7KH VLGHVWUHDP VDPSOLQJ OLPH FRQVLVWV RI D VDPSOH FHOO RQ RQH HQG WKDW LQWR WKH
VLGHVWUHDPVHQVRUUHFHSWDFOHRQWKHPRQLWRU7KHRWKHUHQGRIVDPSOLQJOLQHLVFRQQHFWHG
WRWKHSDWLHQWHLWKHUYLDDFDQQXODRUDVDPSOH7DVVKRZQLQ)LJXUH



 &DQQXOD  6DPSOLQJ7
 6DPSOLQJFHOO  6LGHVWUHDP&2VHQVRU
   

)LJXUH&RQQHFWLRQIRUVLGHVWUHDP




'HVFULSWLRQRI(W&20HQX)XQFWLRQV

 
 
 


 (W&2LFRQ  ,Q&2YDOXH
 ,Q&2LFRQ  (W&2YDOXH
 (W&2XQLW  
   
)LJXUH(W&2'LVSOD\

7DEOH(W&20HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
(W&20(18
(W&28QLW PP+JN3D
$31($$ODUP 2II VHF VHF VHF VHF VHF
VHFVHF
=HURFDOLEUDWLRQ  <HV1R
(W&2$ODUP/LPLWV$GMXVWPHQW 
Ÿ 8SSHU$ODUP/LPLW 
ź /RZHU$ODUP/LPLW
(W&2$ODUP,QKLELWLRQ  2Q2II
,Q&2$ODUP/LPLWV$GMXVWPHQW 
Ÿ 8SSHU$ODUP/LPLW 
ź /RZHU$ODUP/LPLW
,Q&2$ODUP,QKLELWLRQ  2Q2II
5HWXUQ 

$31($$ODUP
,I D SDWLHQW EUHDWK LV QRW GHWHFWHG ZKHQ WKH $31($ DODUP LV EHLQJ VHW WKH DODUP ZLOO
VRXQG 7KH PRQLWRU FDQ GHWHFW SDWLHQW DSQHD RQO\ ZKHQ UHVSLUDWLRQ LV PHDVXUHG E\ DQ
DLUZD\PHWKRG

=HURFDOLEUDWLRQ
:KHQWKH&2VHQVRULVFKDQJHGRUWKHµ&23UHVVXUH1RW=HURHG¶PHVVDJHDSSHDUV
WKHXVHUFDOLEUDWHVWKH&2VHQVRU:KHQ=HURFDOLEUDWLRQLVVHWWR2QWKH&2VHQVRULV
FDOLEUDWHG

(W&2RU,Q&2$ODUP,QKLELWLRQ
:KHQ OLPLW DODUP LQKLELWLRQ LV VHW WR 2Q WKH DXGLEOH DODUP IRU (W&2 RU ,Q&2 OLPLW
YLRODWLRQLVLQKLELWHG



'HVFULSWLRQRI(W&2:DYHIRUP0HQX)XQFWLRQV

 






 (W&2ZDYHIRUPLFRQ  (W&2ZDYHIRUP
 (W&2VL]HEDU  
   
)LJXUH(W&2:DYHIRUP'LVSOD\

7DEOH(W&2:DYHIRUP0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
(W&2:$9()2500(18
6ZHHS6SHHG PPVPPVPPV
12*DV 2Q2II
2*DV 2Q2II
6L]H $872PP+JPP+JPP+JPP+J
$872N3DN3DN3DN3D 
$872 
6FDOH 2II
=HUR&DOLEUDWLRQ <HV1R
/DUJH1XPHULF1,%3 
:DYHIRUP0HQX (&* ZDYHIRUP 6S2 ZDYHIRUP 5HVSLUDWLRQ ZDYHIRUP
(W&2ZDYHIRUP
7UHQG0HQX 7DEXODU7UHQG*UDSKLFDO7UHQG
5HWXUQ 

6ZHHS6SHHG
7KH XVHUVHOHFWDEOH VZHHS VSHHG GHWHUPLQHV WKH VSHHG DW ZKLFK WKH UHVSLUDWLRQ
ZDYHIRUP WUDFH PRYHV DFURVV WKH VFUHHQ 6ZHHS 6SHHG FDQ EH VHOHFWHG IURP 
PPVPPVDQGPPV

12*DV
$V WKH 12 LQ WKH VDPSOH JDV DQ DVVXPSWLRQ LV PDGH LI 12 LV DGPLQLVWHUHG WR WKH
SDWLHQW WKHQ WKH UHPDLQLQJ EDODQFH RI WKH DGPLQLVWHUHG PL[WXUH LV 2 7KH FRPELQHG
HIIHFW RI WKHVH JDVHV LV WZRIROG 2 SUHVHQFH GHFUHDVHV ,5 DEVRUSWLRQ DQG 12
SUHVHQFH LQFUHDVHV DEVRUSWLRQ 7KRXJK 12 GRHV QRW GLUHFWO\ DEVRUE WKH ILOWHUHG ,5
HQHUJ\LWFDXVHWKH&2PROHFXOHWRDEVRUEDQGSDVVDORQJVRPHRILWHQHUJ\WRWKH12
PROHFXOH RI VLPLODU PROHFXODU ZHLJKW %\ SDVVLQJ RII VRPH RI WKLV HQHUJ\ WKH &2
PROHFXOHLVIUHHWRDEVRUEHYHQPRUHHQHUJ\ZKLFKOHDGVWRDQLQFUHDVHLQDEVRUSWLRQ,W
LVUHFRPPHQGHG12*DVLVVHWWR2QZKHQ12FRQFHQWUDWLRQVLVDERYH

1RWH+LJK12OHYHOVFDXVHDKLJKHUWKDQH[SHFWHG&2UHDGLQJ


2*DV
$VWKH1LQWKHVDPSOHJDVLVUHSODFHGE\2WKHHIIHFWLVDGHFUHDVHLQ,5DEVRUSWLRQ
7KLVUHVXOWVLQDORZHUWKDQDFWXDOPHDVXUHG&2YDOXH &2PHDVXUHG  
,W LV UHFRPPHQGHG 2 *DV LV VHW WR 2Q WR FRUUHFW IRU WKH 2 HIIHFW ZKHQ WKH 2
FRQFHQWUDWLRQLVJUHDWHUWKDQ$W2OHYHOVHTXDOWRRUOHVVWKDQWKHFRUUHFWLRQ
VKRXOGQRWEHXVHG

1RWH+LJKFRQFHQWUDWLRQVRI2ZLOOFDXVHDORZHUWKDQH[SHFWHG&2UHDGLQJ

6L]H
7KHXVHUVHOHFWDEOH(W&2ZDYHIRUPVL]HDOORZV\RXWRDGMXVWWKHDPSOLWXGHRIDQ(W&2
ZDYHIRUPZLWKRXWDIIHFWLQJWKHVLJQDOJDLQ7KHZDYHIRUPVL]HFDQQRWEHDGMXVWHGZKLOH
WKHVFDOHVDUHGLVSOD\HG

6FDOH
7KHXVHUVHOHFWDEOHSUHVVXUHZDYHIRUPVFDOHDOORZV\RXWRDGMXVWWKHVFDOHRIDSUHVVXUH
ZDYHIRUP7KHVFDOHFDQEHVHOHFWHGIURP2IIDQG










7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN


7(03(5$785(021,725,1*

:$51,1* )RU EHVW SURGXFW SHUIRUPDQFH DQG PHDVXUHPHQW DFFXUDF\ XVH RQO\
 <6,  DQG  VHULHV WHPSHUDWXUH SUREHV UHFRPPHQGHG E\ 0HGLDQD 8VH
DFFHVVRULHVDFFRUGLQJWRWKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVHDQG\RXUIDFLOLW\¶V
VWDQGDUGV

*HQHUDO
0HDVXUHPHQW RI SDWLHQW WHPSHUDWXUH LV DFFRPSOLVKHG E\ SURFHVVLQJ WKH VLJQDO IURP D
SUREH FRQWDLQLQJ D UHVLVWDQFH HOHPHQW ZKRVH LPSHGDQFH LV WHPSHUDWXUH GHSHQGHQW
7KHVH GHYLFHV DUH FDOOHG WKHUPLVWRUV 7KH PHDVXULQJ WLPH UHTXLUHG WR REWDLQ DFFXUDWH
UHDGLQJVDWWKHVSHFLILFERG\VLWHLVDERXWVHFRQGV

6HWXS&RQQHFWLRQV

7KH PRQLWRU LV GHVLJQHG WR DFFHSW VLJQDOV IURP WKH WHPSHUDWXUH SUREHV <6,  VHULHV
DQGVHULHVIRUVNLQUHFWDORUHWF5HIHUWRWKHWHPSHUDWXUHSUREHGLUHFWLRQVIRUXVHIRU
GHWDLOV

,QVHUWDERG\WHPSHUDWXUHSUREHLQWRWKHWHPSHUDWXUHFRQQHFWRURQWKHPRQLWRU¶VULJKW
SDQHO VHH)LJXUH 
)ROORZWKHGLUHFWLRQVIRUXVHDFFRPSDQ\LQJWKHWHPSHUDWXUHSUREH



'HVFULSWLRQRI7HPSHUDWXUH0HQX)XQFWLRQV


           

 7HPSHUDWXUHLFRQ  7HPSHUDWXUHYDOXH 
 7HPSHUDWXUHXQLW  
   
)LJXUH7HPSHUDWXUH'LVSOD\

7DEOH7HPSHUDWXUH0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
7(03(5$785(0(18
7HPS8QLW ƒ&ƒ)
$ODUP/LPLWV$GMXVWPHQW 
̵  8SSHU$ODUP/LPLW 
̷  /RZHU$ODUP/LPLW
7HPSHUDWXUH$ODUP,QKLELWLRQ  2Q2II
5HWXUQ

1RWH 7KH WHPSHUDWXUH XQLW RI PHDVXUH FDQ RQO\ EH FKDQJHG E\ DXWKRUL]HG SHUVRQQHO
YLDWKH6HUYLFH0HQX

7HPSHUDWXUH$ODUP,QKLELWLRQ
:KHQ WKH OLPLW DODUP LQKLELWLRQ LV VHW WR 2Q WKH DXGLEOH DODUP IRU 7HPSHUDWXUH OLPLW
YLRODWLRQLVLQKLELWHG


75(1'6

*HQHUDO

7UHQG GDWD LQ HLWKHU JUDSKLFDO RU WDEXODU IRUPDW PD\ EH GLVSOD\HG RU SULQWHG LI D SULQWHU
PRGXOHLVLQVWDOOHG VHH3ULQWLQJVHFWLRQ 

5RWDWHWKHMRJGLDOWRKLJKOLJKWRQHRIZDYHIRUPDUHD
3UHVVWKHMRJGLDOWRZDYHIRUPPHQXRQWKHVFUHHQ
5RWDWHWKHMRJGLDOKLJKOLJKW7UHQG0HQXDQGSUHVVWKHMRJGLDOWRGLVSOD\
6HOHFWWKH7DEXODU7UHQGRU*UDSKLFDO7UHQG
3UHVVWKH+RPH%XWWRQWRUHWXUQWRWKHPDLQVFUHHQ

7KHWUHQGGDWDLVVWRUHGLQPHPRU\:KHQWKHPRQLWRUWXUQVRQDQGVWDUWVWRPHDVXUHYLWDO
VLJQV WKH PRQLWRU VDYHV GDWD DW D VHOHFWHG LQWHUYDO $OVR WKH PRQLWRU VDYHV DOO
SK\VLRORJLFDODODUPFRQGLWLRQV1,%3PHDVXUHPHQWVDQGHUURUHYHQWV7KHGDWDUHPDLQV
HYHQ LI WKH PRQLWRU LV SRZHUHG RII $IWHU WKH PRQLWRU KDV VWRUHG  WUHQG GDWD WKH
PRQLWRUEHJLQVWRVWRUHWKHQHZGDWDRYHUWKHROGHVWGDWD

7DEXODU7UHQG'DWD

7KHPRQLWRUSUHVHQWVWUHQGLQIRUPDWLRQLQWDEXODUIRUPDWIRUDOOPRQLWRUHGSDUDPHWHUV7KH
QHZHVWGDWDDSSHDUVDWWKHERWWRPRIWDEXODUWUHQGV 

)RUWKH1,%3WUHQGVWKHGDWDPD\GLVSOD\WKHODWHVWPHDVXUHPHQW

)LJXUH7DEXODU7UHQG6FUHHQ

7RVFUROORUFKDQJHYLHZLQJRSWLRQV SXVKWKHMRJGLDORQWKHWDEXODUWUHQGVFUHHQ ZKHQ


WKHWDEXODUWUHQGVFUHHQLVKLJKOLJKWHG7KHPRQLWRUGLVSOD\VWKH7DEXODU7UHQG0HQX







7DEOH7DEXODU7UHQG0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
7$%8/$575(1'0(18
6FUROO 7KHMRJGLDOLVDFWLYDWHGIRUVFUROOLQJ
1RWH3UHVVWKH+RPH%XWWRQWRH[LW
'LVSOD\7LPH,QWHUYDO VHFPLQXWHV
7UHQG'LVSOD\6HOHFW 1RUPDO1,%3$ODUP1RUPDO1,%3 
1RUPDO$ODUP1,%3$ODUP$//
7DEXODU7UHQG2II 
5HWXUQ ([LWV7DEXODU7UHQG0HQXLPPHGLDWHO\UHWXUQVWR
7DEXODU7UHQG6FUHHQ

6FUROOLQJ7DEXODU7UHQG'DWD
5RWDWHWKHMRJGLDOWRKLJKOLJKW6FUROO
3UHVVWKHMRJGLDOWRDFWLYDWHVFUROOLQJ
5RWDWHWKHMRJGLDOWRVFUROOWKURXJKWKHWUHQGGDWD
  &ORFNZLVH URWDWLRQ PRYHV IRUZDUG WR QHZHU GDWD &RXQWHUFORFNZLVH URWDWLRQ PRYHV
EDFNZDUGWRROGHUGDWD
$IWHUYLHZLQJWKHWUHQGVSUHVVWKHMRJGLDOWRH[LWWKHVFUROOLQJ

'LVSOD\7LPH,QWHUYDO
7KH GLVSOD\ WLPH LQWHUYDO FDQ EH VHOHFWHG IURP  VHF       PLQXWHV 7KH
WDEXODUWUHQGZLOOEHGLVSOD\HGLQDVHOHFWHGLQWHUYDO

7UHQG'LVSOD\6HOHFW
7KHPRQLWRUGLVSOD\VWKHWUHQGVVHOHFWHGE\WKHXVHU
1RUPDO
1,%3
$ODUP
1RUPDO1,%3
1RUPDO$ODUP
1,%3$ODUP
$//

7DEXODU7UHQG2II
7RH[LWWDEXODUWUHQGGLVSOD\VHOHFW7DEXODU7UHQG2II


*UDSKLFDO7UHQG'DWD

7UHQG LQIRUPDWLRQ LQ JUDSKLFDO IRUPDW IRU DOO PRQLWRUHG SDUDPHWHUV LV GLVSOD\HG LQ RQH
JUDSK 7KH XVHU FDQ VHOHFW HDFK SDUDPHWHU WR GLVSOD\ YLD LQWHUDFWLRQ ZLWK *UDSKLFDO
7UHQG0HQX

7KHJUDSKLFDOWUHQGGDWDRIHDFKSDUDPHWHULVLQGLFDWHGE\WKHV\PEROVVSHFLILHGLQWDEOH
7KHYHUWLFDOUDQJHRIDJUDSKLFDOWUHQGLVSUHVHQWHGZLWKIL[HGYDOXHDQGWKHKRUL]RQWDO
UDQJH LV  PLQXWHV 7KH QHZHVW GDWD DSSHDUV DW WKH ULJKW RI JUDSKLFDO WUHQG 8VH WKH
VFUROOIXQFWLRQWRYLHZPRUHGDWD


 )LJXUH*UDSKLFDO7UHQG6FUHHQ


7RVFUROORUFKDQJHYLHZLQJRSWLRQV SXVKWKHMRJGLDORQWKHWDEXODUWUHQGVFUHHQ ZKHQ
WKHWDEXODUWUHQGVFUHHQLVKLJKOLJKWHG7KHPRQLWRUGLVSOD\VWKH*UDSKLFDO7UHQG0HQX


7DEOH*UDSKLFDO7UHQG0HQX
/HYHO0HQX /HYHO0HQXRU5HVSRQVH
*5$3+,&$/75(1'0(18
6FUROO 7KHMRJGLDOLVDFWLYDWHGIRUVFUROOLQJ
1RWH3UHVVWKH+RPH%XWWRQWRH[LW
+535*UDSKLFDO7UHQG 2Q2II
6S2*UDSKLFDO7UHQG 2Q2II
1,%3*UDSKLFDO7UHQG 2Q2II
5(63*UDSKLFDO7UHQG 2Q2II
7(03*UDSKLFDO7UHQG 2Q2II
&2*UDSKLFDO7UHQG 2Q2II
*UDSKLFDO7UHQG2II 
5HWXUQ ([LWV*UDSKLFDO7UHQG0HQXLPPHGLDWHO\
UHWXUQVWR*UDSKLFDO7UHQG6FUHHQ


6FUROOLQJ*UDSKLFDO7UHQG'DWD
5RWDWHWKHMRJGLDOWRKLJKOLJKW6FUROO
3UHVVWKHMRJGLDOWRDFWLYDWHVFUROOLQJ
5RWDWHWKHMRJGLDOWRVFUROOWKURXJKWKHWUHQGGDWD
  &ORFNZLVH URWDWLRQ PRYHV IRUZDUG WR QHZHU GDWD &RXQWHUFORFNZLVH URWDWLRQ PRYHV
EDFNZDUGWRROGHUGDWD
$IWHUYLHZLQJWKHWUHQGVSUHVVWKHMRJGLDOWRH[LWWKHVFUROOLQJ

6HOHFWLQJ*UDSKLFDO7UHQG'DWD
5RWDWHWKHMRJGLDOWRVHOHFW+5351,%36S25(63(W&2RU7(03
3UHVVWKHMRJGLDOWRVHWWR2Q
5RWDWHWKHMRJGLDOWRKLJKOLJKW5HWXUQWKHQSUHVVWKHMRJGLDOWRUHWXUQWRWKHJUDSKLFDO
WUHQGVFUHHQ2QO\SDUDPHWHUVVHWWR2QZLOOEHGLVSOD\HGLQWKHJUDSKLFDOWUHQGVFUHHQ

1RWH6HWWLQJ2IIZLOOQRWGLVSOD\WKHWUHQGVRIWKHVHOHFWHGSDUDPHWHU 

*UDSKLFDO7UHQG2II 
7RH[LWJUDSKLFDOWUHQGGLVSOD\VHOHFW*UDSKLFDO7UHQG2II



0(186758&785(

(&*:$9()2500(18
 /HDG6HOHFW
  /HDG,
  /HDG,,
  /HDG,,,
  D95
  D9/
  D9)
  &KHVW/HDG 9 
  5HWXUQ
 6ZHHS6SHHG
  PPV
  PPV
  PPV
  5HWXUQ
 6L]H
  $XWR
   PPP9
   PPP9
   PPP9
   PPP9
   PPP9
  PPP9
  PPP9
  PPP9
  5HWXUQ
 3DFHU'HWHFW
  2Q
  2II
 )LOWHU0RGH
  0RQLWRU
  /RZ([WHQG
  )LOWHU
  5HWXUQ
 /DUJH1XPHULF1,%3
 :DYHIRUP0HQX
  (&*ZDYHIRUP
  6S2ZDYHIRUP
  5HVSLUDWLRQZDYHIRUP
  (W&2ZDYHIRUP
  5HWXUQ
 7UHQG0HQX
  7DEXODU7UHQG
  *UDSKLFDO7UHQG
  5HWXUQ
 5HOHDUQ
  <HV
  1R
  5HWXUQ
 5HWXUQ




6S2:$9()2500(18
 6ZHHS6SHHG
  PPV
  PPV
  PPV
  5HWXUQ
 /DUJH1XPHULF1,%3
 :DYHIRUP0HQX
  (&*ZDYHIRUP
  6S2ZDYHIRUP
  5HVSLUDWLRQZDYHIRUP
  (W&2ZDYHIRUP
  5HWXUQ
 7UHQG0HQX
  7DEXODU7UHQG
  *UDSKLFDO7UHQG
  5HWXUQ
 5HWXUQ


5(63,5$7,21:$9()2500(18
 6ZHHS6SHHG
  PPV
  PPV
  PPV
  5HWXUQ
 6L]H
  $XWR
  
  
  
  
  
  
  
  
  5HWXUQ
 /DUJH1XPHULF1,%3
 :DYHIRUP0HQX
  (&*ZDYHIRUP
  6S2ZDYHIRUP
  5HVSLUDWLRQZDYHIRUP
  (W&2ZDYHIRUP
  5HWXUQ
 7UHQG0HQX
  7DEXODU7UHQG
  *UDSKLFDO7UHQG
  5HWXUQ 
 5HWXUQ



(W&2:$9()2500(18
 6ZHHS6SHHG
  PPV
  PPV
  PPV
  5HWXUQ
 12*DV
  2Q
  2II
 2*DV
  2Q
  2II
 6L]H
  $XWR
  aPP+J
  aPP+J
  aPP+J
  aPP+J
  5HWXUQ
 6FDOH
  2II
  
  
  
  
  
  5HWXUQ
 =HUR&DOLEUDWLRQ
  <HV
  1R
  5HWXUQ
 /DUJH1XPHULF1,%3
 :DYHIRUP0HQX
  (&*:DYHIRUP
  6S2:DYHIRUP
  5HVSLUDWLRQ:DYHIRUP
  (W&2:DYHIRUP
  5HWXUQ
 7UHQG0DQX
  7DEXODU7UHQG
  *UDSKLFDO7UHQG
  5HWXUQ 
 5HWXUQ

1RWH<RXFDQVHOHFWWKHVDPHZDYHIRUPWRGLVSOD\LQWZRFRQVHFXWLYHZDYHIRUPDUHDV


+5350(18
 +5356RXUFH
  $872 ³+5!6S235!1,%335´
  (&* 
  6S2 
  1,%3
  5HWXUQ
 $UUK\WKPLD'HWHFWLRQ67/HYHO$QDO\VLV
  2Q
  2II
³$ODUPOLPLWVDGMXVWPHQW´
+535   67O   67OO   67OOO   679   $U
                     
                
³+535DODUPLQKLELWLRQ´

  
  2Q
  
  2II
 5HWXUQ


1,%30(18
 $XWRPDWLF0RGH,QWHUYDO
  2II
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  5HWXUQ
 ,QLWLDO,QIODWH3UHVVXUH
  ³$GXOW3HGLDWULF´
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  5HWXUQ
  ³1HRQDWDO´
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  PP+J
  5HWXUQ
 1,%38QLW
  PP+J
  N3D
³$ODUPOLPLWVDGMXVWPHQW PP+J ´
 6<6   0$3   ',$
         
           
³1,%3DODUPLQKLELWLRQ´

  
         2Q
  
         2II
 5HWXUQ




6S20(18
 &/RFN
  2Q
  2II
³$ODUPOLPLWVDGMXVWPHQW´
  
   
³6S2DODUPLQKLELWLRQ´

  
   2Q
  
   2II
 5HWXUQ


5(63,5$7,210(18
 5HVSLUDWLRQ
  2Q
  2II
 5HVSLUDWLRQ6RXUFH
  $872  ³$:!,0´
  $:
  ,0
  5HWXUQ
³$ODUPOLPLWVDGMXVWPHQW´
  
   
³5HVSLUDWLRQDODUPLQKLELWLRQ´

  
2Q 

  
  2II 
 5HWXUQ



7(03(5$785(0(18
 7HPS8QLW
  ƒ&
  ƒ)
³$ODUPOLPLWVDGMXVWPHQW ž& ´
      
      
³7HPSHUDWXUHDODUPLQKLELWLRQ´ 

  
  2Q      
  
  2II      
 5HWXUQ


(W&20HQX
 (W&28QLW
  PP+J
  N3D
  
  5HWXUQ
 $31($$ODUP
  2II
  VHF
  VHF
  VHF
  VHF
  VHF
  VHF
  VHF
  5HWXUQ
 =HUR&DOLEUDWLRQ
  <HV
  1R
  5HWXUQ
³$ODUPOLPLWVDGMXVWPHQW PP+J ´
 (W&2   ,Q&2
        
          
³(W&2DODUPLQKLELWLRQ´

  
 2Q      2Q
  
 2II      2II
 5HWXUQ



7$%8/$575(1'0(18
 6FUROO
 'LVSOD\7LPH,QWHUYDO
  VHF
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  PLQ
  5HWXUQ
 7UHQG'LVSOD\6HOHFW
  1RUPDO
  1,%3
  $ODUP
  1RUPDO1,%3
  1RUPDO$ODUP
  1,%3$ODUP
  $//
  5HWXUQ
 7DEXODU7UHQG2II 
 5HWXUQ


*5$3+,&$/75(1'0(18
 6FUROO
 +535*UDSKLFDO7UHQG
  2Q
  2II
 6S2*UDSKLFDO7UHQG
  2Q
  2II
 1,%3*UDSKLFDO7UHQG
  2Q
  2II
 5(63*UDSKLFDO7UHQG
  2Q
  2II
 7(03*UDSKLFDO7UHQG
  2Q
  2II
 &2*UDSKLFDO7UHQG
  2Q
  2II
 *UDSKLFDO7UHQG2II 
 5HWXUQ




6(7830(18
 3DWLHQW0RGH
  $GXOW
  3HGLDWULF
  1HRQDWDO
  5HWXUQ
 7UHQG&OHDU
  <HV
  1R
  5HWXUQ
 3ULQW6SHHG
  PPV
  PPV
 3ULQW0RGH
  2QH6KRW
  &RQWLQXRXV
 $ODUP9ROXPH
  
  
  
  
  
  
  
  
  5HWXUQ
 .H\%HHS9ROXPH
  2II
  
  
  
  
  
  
  
  5HWXUQ
 4569ROXPH
  2II
  
  
  
  
  
  
  
 6HUYLFH0HQX
        3DVVFRGH 
        5HWXUQ
 5HWXUQ 




$/$50/,0,760(18
 3ULQW2Q$ODUP
  2Q
  2II
 $ODUP/LPLWV ³$ODUPOLPLWVDGMXVWPHQW$ODUPLQKLELWLRQIRUHDFKSDUDPHWHUV´
     1,%3     &2
  +535   6S2    6<6     0$3    ',$    5(63   (W&2   ,Q&2   7(03
                                                  
                                                          
         
  2Q       2Q               2Q              2Q      2Q      2Q       2Q
         
  2II       2II               2II              2II      2II      2II       2II
  5HWXUQ
 5HWXUQ

1RWH $ODUP OLPLWV VKRZQ DERYH DUH IRU $GXOW SDWLHQW PRGH ,Q RUGHU WR VHW DODUP OLPLWV WR
3HGLDWULFRU1HRQDWDOSDWLHQWPRGHFKDQJH3DWLHQWPRGHYLDWKH6HWXS0HQX


'$7(7,0(0(18
 6HW'DWH
  <HDU
  0RQWK
  'D\
  5HWXUQ
 6HW7LPH
  +RXU  ³KRXUVRQO\´
  0LQXWH
  6HFRQG
  5HWXUQ
 'DWH)RUPDW
  PPGG\\
  GGPP\\
  \\PPGG
  5HWXUQ



35,17,1*

*HQHUDO
7KHPRQLWRUFDQSULQWUHDOWLPHPHDVXUHPHQWDQGWUHQGGDWDDVIROORZV 

6HW 3ULQW 6SHHG 3ULQW 0RGH YLD WKH 6HWXS 0HQX DQG 3ULQW2Q$ODUP YLD WKH
$ODUP/LPLWV0HQX
7RVWDUWSULQWLQJSUHVVWKH3ULQW%XWWRQ
7RVWRSSULQWLQJGXULQJSULQWRXWSUHVVWKH3ULQW%XWWRQDJDLQ

3ULQW6SHHG
7KHSULQWVSHHGIRULVXVHUVHOHFWDEOHHLWKHURUPPV

3ULQW0RGH
2QH6KRW
$ 2QH6KRW SULQW UHFRUGLQJ UHDOWLPH JUDSKLFDO DQG QXPHULF LQIRUPDWLRQ EHJLQQLQJ 
VHFRQGVEHIRUHWKHSULQWLQLWLDWLRQDQGHQGLQJVHFRQGVDIWHUWKDWHYHQW 

&RQWLQXRXV
$ SULQW RI UHDOWLPH JUDSKLFDO DQG QXPHULF LQIRUPDWLRQ EHJLQQLQJ  VHFRQGV EHIRUH
LQLWLDWLQJWKHDFWLRQDQGFRQWLQXLQJXQWLOVWRSSHG 

3ULQW2Q$ODUP
,I3ULQW2Q$ODUPLVVHWWR2QLQ $ODUP/LPLWVPHQXWKHPRQLWRU ZLOODXWRPDWLFDOO\ SULQW
RXWZKHQHYHUDSK\VLRORJLFDODODUPFRQGLWLRQRFFXUV


3ULQW2XW&RQILJXUDWLRQ

2QH6KRW3ULQW2XW
,I3ULQW0RGHLVVHWWR2QH6KRWWKHPRQLWRUZLOOSULQWRXWQXPHULFGDWDDQGZDYHIRUPV
E\SUHVVLQJWKH3ULQW%XWWRQDVVKRZQ)LJXUH


)LJXUH2QH6KRW3ULQWLQJ

&RQWLQXRXV3ULQW2XW
,I3ULQW0RGHLVVHWWR&RQWLQXRXVWKHPRQLWRUZLOOSULQWRXWQXPHULFGDWDHYHU\PLQXWH
DQGZDYHIRUPVFRQWLQXRXVO\E\SUHVVLQJWKH3ULQW%XWWRQDVVKRZQLQ)LJXUH

)LJXUH&RQWLQXRXV3ULQWLQJ


7DEXODU7UHQG'DWD3ULQW2XW
:KHQ WDEXODU WUHQG GDWD LV GLVSOD\HG RQ WKH VFUHHQ WKH PRQLWRU ZLOO SULQW RXW WKH
GLVSOD\HGGDWDE\SUHVVLQJWKH3ULQW%XWWRQDVVKRZQLQ)LJXUH

)LJXUH7DEXODU7UHQG3ULQWLQJ

6HWWLQJ,QIRUPDWLRQ3ULQW2XW
:KHQ WKH PRQLWRU LV LQ 6HUYLFH 0HQX WKH PRQLWRU ZLOO SULQW RXW DOO LQWHUQDO VHWWLQJV E\
SUHVVLQJ WKH 3ULQW %XWWRQ DV VKRZQ LQ )LJXUH  5HIHU WR WKH VHUYLFH PDQXDO IRU WKH
GHWDLOHGLQVWUXFWLRQV



)LJXUH6HWWLQJ,QIRUPDWLRQ3ULQWLQJ










7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN



(;7(51$/,17(5)$&(

*HQHUDO

7KH PRQLWRU SURYLGHV H[WHUQDO FRQQHFWRUV RQ WKH ULJKW SDQHO WR VXSSRUW FRPPXQLFDWLRQ
ZLWK H[WHUQDO HTXLSPHQW DQG IXQFWLRQV VXFK DV D QXUVH FDOO VRIWZDUH XSJUDGHV RU 3&
FRQQHFWLRQ

:$51,1* $Q\ FRQQHFWLRQV EHWZHHQ WKLV PRQLWRU DQG RWKHU GHYLFHV PXVW
 FRPSO\ ZLWK DSSOLFDEOH PHGLFDO V\VWHPV VDIHW\ VWDQGDUGV VXFK DV ,(& 
)DLOXUHWRGRVRFRXOGUHVXOWLQXQVDIHOHDNDJHFXUUHQWDQGJURXQGLQJFRQGLWLRQV

1RWH7KLVHTXLSPHQWLVWREHXVHGRQDQHWZRUNDQGWKHFRPPXQLFDWLRQZLULQJV /$1RU
5-1XUVHFDOO,QWHUIDFH DUHOLPLWHGWRLQVLGHRIWKHEXLOGLQJ

&DEOH&RQQHFWLRQ

5-1XUVH&DOO,QWHUIDFH
7KH3LQOD\RXWVRISLQ1XUVHFDOOLQWHUIDFHDUHLOOXVWUDWHGEHORZ
ȱ



)LJXUH1XUVH&DOO,QWHUIDFH3LQ/D\RXW

7DEOH1XUVH&DOO,QWHUIDFH&RQQHFWLRQV
3LQ 6LJQDO
 1XUVHFDOOQRUPDOO\FORVHG
 1XUVHFDOOFRPPRQ
 1XUVHFDOOQRUPDOO\RSHQ
 9
 1&
 *1'



1XUVH&DOO,QWHUIDFH

:$51,1* 7KH QXUVH FDOO IHDWXUH VKRXOG QRW EH XVHG DV WKH SULPDU\ VRXUFH RI
 DODUP QRWLILFDWLRQ 7KH DXGLEOH DODUPV RI WKH PRQLWRU XVHG LQ FRQMXQFWLRQ ZLWK
FOLQLFDO VLJQV DQG V\PSWRPV DUH WKH SULPDU\ VRXUFHV IRU QRWLI\LQJ PHGLFDO
SHUVRQQHOWKDWDQDODUPFRQGLWLRQH[LVWV

&$87,217KHQXUVHFDOOIHDWXUHLVQRWIXQFWLRQDOZKHQHYHUWKHPRQLWRUDODUPVDUH
VLOHQFHG

&$87,21 7KH QXUVH FDOO IXQFWLRQ QHHGV WR EH WHVWHG DIWHU LW KDV EHHQ VHW XS LQ
\RXUIDFLOLW\7KHQXUVHFDOOIHDWXUHVKRXOGEHWHVWHGZKHQHYHUVHWWLQJXSWKH0LQ
DORFDWLRQWKDWXVHVQXUVHFDOO2QHZD\WRWHVWWKHQXUVHFDOOIXQFWLRQLVWRFUHDWH
DQ DODUP FRQGLWLRQ IRU H[DPSOH VHQVRU GLVFRQQHFW  DQG YHULI\ WKDW \RXU IDFLOLW\¶V
QXUVHFDOOV\VWHPLVDFWLYDWHG

7KHQXUVHFDOOIHDWXUHRIWKHPRQLWRULVRSHUDWLRQDO ZKHQWKHPRQLWRULV SRZHUHG E\ $&
SRZHURUEDWWHU\SRZHU7KHQXUVHFDOOIHDWXUHRIWKHPRQLWRUZRUNVLQFRQMXQFWLRQZLWKWKH
QXUVHFDOOV\VWHPRI\RXULQVWLWXWLRQZKHQWKHPRQLWRUVRXQGVDQDXGLEOHDODUP

7KHPRQLWRUSURYLGHVWKHQXUVHFDOOLQWHUIDFHRIUHOD\FORVXUHW\SH7KHLQWHUIDFHIXQFWLRQV
ZKHQWKHPRQLWRULVRSHUDWLQJHLWKHURQ$&SRZHURUEDWWHU\SRZHU

7KHUHPRWHORFDWLRQLVVLJQDOHGDQ\WLPHWKHUHLVDQDXGLEOHDODUP,IWKHDXGLEOHDODUPKDV
EHHQWXUQHGRIIRUVLOHQFHGWKHQXUVHFDOOIXQFWLRQLVDOVRWXUQHGRII

1XUVH&DOO5HOD\V1RUPDOO\2SHQ&ORVHG

3LQVDQGSURYLGHDUHOD\WKDWFORVHVZKHQDQDODUPLVVRXQGLQJRQWKHPRQLWRU3LQV
DQGSURYLGHDUHOD\WKDWRSHQVZKHQDQDODUPLVVRXQGLQJ3LQLVDFRPPRQOHDGIRU
ERWKUHOD\V

ȱ
ȱ
ȱ



0$,17(1$1&(

:$51,1* 7KH FRYHU VKRXOG EH UHPRYHG RQO\ E\ TXDOLILHG VHUYLFH SHUVRQQHO
 7KHUHDUHQRLQWHUQDOXVHUVHUYLFHDEOHSDUWVH[FHSWIRUWKHEDWWHU\
:$51,1*'RQRWVSUD\SRXURUVSLOODQ\OLTXLGRQWKHPRQLWRULWVDFFHVVRULHV
 FRQQHFWRUVVZLWFKHVRURSHQLQJVLQWKHFKDVVLV

 :$51,1*8QSOXJWKHSRZHUFRUGIURPWKHPRQLWRUEHIRUHFOHDQLQJWKHPRQLWRU

5HF\FOLQJDQG'LVSRVDO

:KHQWKHPRQLWRUEDWWHU\RUDFFHVVRULHVUHDFKWKHHQGRIXVHIXOOLIHUHF\FOHRUGLVSRVH
RIWKHHTXLSPHQWDFFRUGLQJWRDSSURSULDWHORFDODQGUHJLRQDOUHJXODWLRQV

1RWH7KHPRQLWRUVKRXOGEHGLVSRVHGRIVHSDUDWHO\IURPWKHPXQLFLSDOZDVWHVWUHDPYLD
GHVLJQDWHGFROOHFWLRQIDFLOLWLHVDSSRLQWHGE\WKHJRYHUQPHQWRUWKHORFDODXWKRULWLHV

1RWH 7KH FRUUHFW GLVSRVDO RI \RXU ROG DSSOLDQFH ZLOO KHOS SUHYHQW SRWHQWLDO QHJDWLYH
FRQVHTXHQFHVIRUWKHHQYLURQPHQWDQGKXPDQKHDOWK

1RWH)RUPRUHGHWDLOHGLQIRUPDWLRQDERXWGLVSRVDORI\RXUROGDSSOLDQFHSOHDVHFRQWDFW
\RXUFLW\RIILFHZDVWHGLVSRVDOVHUYLFHRUWKHVKRSZKHUH\RXSXUFKDVHGWKHPRQLWRU

5HWXUQLQJWKH0RQLWRUDQG6\VWHP&RPSRQHQWV

3DFN WKH PRQLWRU ZLWK VHQVRUV FDEOH RU RWKHU DFFHVVRU\ LWHPV LQ LWV RULJLQDO VKLSSLQJ
FDUWRQ ,I WKH RULJLQDO FDUWRQ LV QRW DYDLODEOH XVH D VXLWDEOH FDUWRQ ZLWK DSSURSULDWH
SDFNLQJPDWHULDOWRSURWHFWWKHPRQLWRUGXULQJVKLSSLQJ

6HUYLFH
7KH PRQLWRU UHTXLUHV QR URXWLQH VHUYLFH RWKHU WKDQ FOHDQLQJ EDWWHU\ PDLQWHQDQFH DQG
VHUYLFHDFWLYLW\ZKLFKLVPDQGDWHGE\WKHXVHU¶VLQVWLWXWLRQ)RUPRUHLQIRUPDWLRQUHIHUWR
WKH PRQLWRU VHUYLFH PDQXDO 4XDOLILHG VHUYLFH SHUVRQQHO LQ WKH XVHU¶V LQVWLWXWLRQ VKRXOG
SHUIRUP SHULRGLF LQVSHFWLRQV RI WKH PRQLWRU ,I VHUYLFH LV QHFHVVDU\ FRQWDFW TXDOLILHG
VHUYLFHSHUVRQQHORU\RXUORFDOVXSSOLHU

3HULRGLF6DIHW\&KHFNV

,WLVUHFRPPHQGHGWKDWWKHIROORZLQJFKHFNVEHSHUIRUPHGHYHU\\HDU
z,QVSHFWWKHHTXLSPHQWIRUPHFKDQLFDODQGIXQFWLRQDOGDPDJH
z,QVSHFWWKHH[WHUQDOVDIHW\ODEHOVIRUOHJLELOLW\




&OHDQLQJ
7KH PRQLWRU PD\ EH VXUIDFHFOHDQHG E\ XVLQJ D VRIW FORWK GDPSHQHG ZLWK HLWKHU D
FRPPHUFLDO QRQDEUDVLYH FOHDQHU RU RQH RI WKH VROXWLRQV OLVWHG EHORZ /LJKWO\ ZLSH WKH
WRSERWWRPDQGIURQWVXUIDFHVRIWKHPRQLWRU

z ,VRSURS\ODOFRKRO
z &KORULQHEOHDFKVROXWLRQ

)RUFDEOHVVHQVRUVFXIIVDQGSUREHVIROORZWKHFOHDQLQJLQVWUXFWLRQVLQWKHGLUHFWLRQV
IRUXVHVKLSSHGZLWKWKRVHFRPSRQHQWV

$YRLGVSLOOLQJOLTXLGRQWKHPRQLWRUHVSHFLDOO\LQFRQQHFWRUDUHDV,IOLTXLGLVDFFLGHQWDOO\
VSLOOHG RQ WKH PRQLWRU FOHDQ DQG GU\ WKRURXJKO\ EHIRUH UHXVH ,I LQ GRXEW DERXW PRQLWRU
VDIHW\UHIHUWKHXQLWWRTXDOLILHGVHUYLFHSHUVRQQHOIRUFKHFNLQJ

%DWWHU\0DLQWHQDQFH

&$87,21 5HFKDUJLQJ WKH EDWWHU\ LV VWURQJO\ UHFRPPHQGHG ZKHQ WKH EDWWHU\ KDV
QRWEHHQUHFKDUJHGIRURUPRUHPRQWKV

&$87,21 )ROORZ ORFDO JRYHUQPHQW RUGLQDQFHV DQG UHF\FOLQJ LQVWUXFWLRQV
UHJDUGLQJGLVSRVDORUUHF\FOLQJRIGHYLFHFRPSRQHQWVLQFOXGLQJEDWWHULHV

&$87,21'RQRWVKRUWFLUFXLWWKHEDWWHU\DVLWPD\JHQHUDWHKHDW7RDYRLGVKRUW
FLUFXLWLQJ GR QRW OHW WKH EDWWHU\ FRPH LQ FRQWDFW ZLWK PHWDO REMHFWV DW DQ\ WLPH
HVSHFLDOO\ZKHQWUDQVSRUWLQJ

&$87,21 'R QRW VROGHU WKH EDWWHU\ GLUHFWO\ +HDW DSSOLHG GXULQJ VROGHULQJ PD\
GDPDJHWKHVDIHW\YHQWLQWKHEDWWHU\¶VSRVLWLYHFRYHU

&$87,21'RQRWGHIRUPWKHEDWWHU\E\DSSO\LQJSUHVVXUH'RQRWWKURZKLWGURS
IROGRULPSDFWWKHEDWWHU\

&$87,21 'R QRW FRQQHFW WKH EDWWHU\ UHYHUVHG LQ SRVLWLYH   DQG QHJDWLYH  
WHUPLQDOV 'R QRW FKDUJH WKH EDWWHU\ ZLWK SRODULWLHV UHYHUVHG DV LW PD\ VZHOO RU
H[SORGH

&$87,21'RQRWXVHDQ\FKDUJHUVQRWVSHFLILHGE\0HGLDQD

&$87,21 'R QRW XVH WKH EDWWHU\ ZLWK RWKHU PDNHU¶V EDWWHULHV GLIIHUHQW W\SHV RU
PRGHOV RI EDWWHULHV VXFK DV GU\ EDWWHULHV QLFNHOPHWDO K\GULGH EDWWHULHV RU /LLRQ
EDWWHULHVWRJHWKHUDVWKH\PLJKWOHDNHOHFWURO\WHKHDWRUH[SORGH

&$87,21 'R QRW PLVWUHDW WKH EDWWHU\ RU XVH WKH EDWWHU\ LQ DSSOLFDWLRQV QRW
UHFRPPHQGHGE\0HGLDQD

&$87,21 .HHS WKH EDWWHU\ RXW RI UHDFK RI EDELHV DQG FKLOGUHQ WR DYRLG DQ\
DFFLGHQWV

&$87,21,IWKHUHDUHDQ\SUREOHPVZLWKWKHEDWWHU\LPPHGLDWHO\SXWWKHEDWWHU\LQ
DVDIHSODFHDQGFRQWDFWTXDOLILHGVHUYLFHSHUVRQQHO


,I WKHPRQLWRU KDV QRW EHHQ XVHG IRU  PRQWKV WKH /LLRQ EDWWHU\ ZLOO QHHG FKDUJLQJ 7R
FKDUJH WKH EDWWHU\ FRQQHFW WKH PRQLWRU WR DQ $& SRZHU VRXUFH DV GHVFULEHG LQ WKH
%DWWHU\2SHUDWLRQVHFWLRQ

1RWH6WRULQJWKHPRQLWRUIRUDORQJSHULRGZLWKRXWFKDUJLQJWKHEDWWHU\PD\GHJUDGHWKH
EDWWHU\FDSDFLW\$IXOOFKDUJHRIDGHSOHWHGEDWWHU\WDNHVRYHURUKRXUV

1RWH 7KH VHUYLFH PHQX GLVSOD\V WKH QXPEHU RI GHHS GLVFKDUJH F\FOHV VHHQ E\ WKH
EDWWHU\7KHPRQLWRUUHFRUGVDGHHSGLVFKDUJHF\FOHZKHQWKHEDWWHU\UHDFKHVWKH
YROWDJH DW ZKLFK D ³&ULWLFDOO\ ORZ EDWWHU\´ DODUP LV LVVXHG 5HIHU WR WKH VHUYLFH
PDQXDOIRUGHWDLOV 

1RWH7KHEDWWHU\VKRXOGEHUHPRYHGIURPWKHPRQLWRULISODFHGLQVWRUDJHRULILWZLOOQRW
EHXVHGIRUDORQJSHULRG 

,WLVUHFRPPHQGHGVWURQJO\WKDWWKHPRQLWRU¶V/LLRQEDWWHU\EHUHSODFHGHYHU\PRQWKV
5HIHUWRWKHVHUYLFHPDQXDOIRUEDWWHU\UHSODFHPHQWDQGJHQHUDOVHUYLFHLQVWUXFWLRQV


/RDGLQJ3ULQWHU3DSHU

&$87,218VHRQO\SULQWHUSDSHUVSHFLILHGE\0HGLDQD

1RWH7KHSDSHUUROOLVHDVLHUWRORDGLILWLVKHOGKRUL]RQWDOO\ZLWK\RXUWKXPERQWRSDQG
\RXUIRUHILQJHUDQGRULQGH[ILQJHUXQGHUQHDWKLW

/RDGSULQWHUSDSHUDVIROORZV

2SHQWKHSULQWHUGRRUE\SXOOLQJWKHODWFKRQWKHSULQWHUVOLJKWO\DQGFDUHIXOO\7KHGRRU
VKRXOGWLOWRSHQ*HQWO\SXOOWKHGRRURSHQLIQHFHVVDU\
5HDFK LQ DQG UHPRYH WKH HPSW\ SDSHU FRUH E\ SXOOLQJ LW RYHU JHQWO\ ZLWK \RXU WKXPE
DQGLQGH[ILQJHU
,QVHUWDQHZSDSHUUROORULHQWHGSURSHUO\
3XOOWKHSDSHURXWWRZDUGV\RXXQWLODSSUR[LPDWHO\LQFKHV FP RISDSHUKDYHEHHQ
XQUROOHG
$OLJQWKHSDSHUZLWKWKHSLQFKUROOHUDWWDFKHGWRWKHSULQWHUGRRU
&ORVHWKHSULQWHUGRRU

1RWH7RPDNHVXUHWKDWWKHSDSHULVDOLJQHGLQWKHVORWDQGKDVQRWEHHQSLQFKHGLQWKH
GRRUSXOOWKHORRVHHGJHXQWLODIHZLQFKHVRISDSHULVVKRZLQJ,IWKHSDSHUZLOOQRW
PRYHRSHQWKHGRRUDQGUHWXUQWRVWHS


 

)LJXUH3ULQWHU3DSHU5HSODFHPHQW




7528%/(6+227,1*

:$51,1* ,I \RX DUH XQFHUWDLQ DERXW WKH DFFXUDF\ RI DQ\ PHDVXUHPHQW FKHFN
 WKH SDWLHQW¶V YLWDO VLJQV E\ DOWHUQDWH PHDQV WKHQ PDNH VXUH WKH PRQLWRU LV
IXQFWLRQLQJFRUUHFWO\
:$51,1* 7KH FRYHU VKRXOG EH UHPRYHG RQO\ E\ TXDOLILHG VHUYLFH SHUVRQQHO
 7KHUHDUHQRXVHUVHUYLFHDEOHSDUWVLQVLGHH[FHSWIRUWKHEDWWHU\

*HQHUDO
,IWKHPRQLWRUGHWHFWVDQHUURULWFDQGLVSOD\DQHUURUFRGH7KHHUURUFRGHVDUHOLVWHGLQ
WKHPRQLWRUVHUYLFHPDQXDO,IDQHUURUFRGHLVGLVSOD\HGZULWHGRZQWKHFRGHDQGFRQWDFW
\RXUVHUYLFHGHSDUWPHQW%HIRUHFDOOLQJ\RXUORFDOVXSSOLHUPDNHVXUHWKDWWKHEDWWHU\LV
FKDUJHGDQGWKDWDOOSRZHUFRQQHFWLRQVDUHLQSODFH

&RUUHFWLYH$FWLRQ

,I\RXH[SHULHQFHDSUREOHPZKLOHXVLQJWKHPRQLWRUDQGDUHXQDEOHWRFRUUHFWLWFRQWDFW
TXDOLILHGVHUYLFHSHUVRQQHORU\RXUORFDOVXSSOLHU7KHVHUYLFHPDQXDOSURYLGHVDGGLWLRQDO
WURXEOHVKRRWLQJLQIRUPDWLRQIRUTXDOLILHGSHUVRQQHO

)ROORZLQJLVDOLVWRISRVVLEOHHUURUVDQGVXJJHVWLRQVIRUFRUUHFWLYHDFWLRQ
7KHUHLVQRUHVSRQVHWRWKH3RZHU%XWWRQ
z $IXVHPD\EHEORZQ1RWLI\VHUYLFHSHUVRQQHOWRFKHFNDQGUHSODFHWKHIXVH
z ,I RSHUDWLQJ RQ EDWWHU\ SRZHU WKH EDWWHU\ PD\ EH PLVVLQJ RU GLVFKDUJHG ,I WKH
EDWWHU\LVGLVFKDUJHGFKDUJHWKHEDWWHU\ VHH%DWWHU\2SHUDWLRQVHFWLRQ 
7KHPRQLWRUVFUHHQGRHVQRWIXQFWLRQSURSHUO\DQGWKHSRZHURQEHHSWRQHVGR
QRWVRXQGGXULQJWKHSRZHURQVHOIWHVW
z 'RQRWXVHWKHPRQLWRUFRQWDFWTXDOLILHGVHUYLFHSHUVRQQHORU\RXUORFDOVXSSOLHU
7KHPRQLWRULVRSHUDWLQJRQEDWWHU\SRZHUHYHQWKRXJKLWLVFRQQHFWHGWR$&
z 0DNHVXUHWKDWWKHSRZHUFRUGLVSURSHUO\FRQQHFWHGWRWKHPRQLWRU
z &KHFNWRVHHLISRZHULVDYDLODEOHWRRWKHUHTXLSPHQWRQWKHVDPH$&FLUFXLW
z 7KHPRQLWRURSHUDWHVIURPLWVLQWHUQDOEDWWHU\LIWKHUHLVQR$&SRZHUVRXUFH


(0, (OHFWURPDJQHWLF,QWHUIHUHQFH 

:$51,1* .HHS SDWLHQWV XQGHU FORVH VXUYHLOODQFH ZKHQ PRQLWRULQJ ,W LV

SRVVLEOH DOWKRXJK XQOLNHO\ WKDW UDGLDWHG HOHFWURPDJQHWLF VLJQDOV IURP VRXUFHV
H[WHUQDOWRWKHSDWLHQWDQGPRQLWRUFDQFDXVHLQDFFXUDWHPHDVXUHPHQWUHDGLQJV
'RQRWUHO\HQWLUHO\RQWKHPRQLWRUUHDGLQJVIRUSDWLHQWDVVHVVPHQW
:$51,1* ,W LV SRVVLEOH WKDW DQ\ UDGLR IUHTXHQF\ WUDQVPLWWLQJ HTXLSPHQW DQG

RWKHU QHDUE\ VRXUFHV RI HOHFWULFDO QRLVH PD\ UHVXOW LQ GLVUXSWLRQ LQ WKH PRQLWRU
RSHUDWLRQ
:$51,1* ,W LV SRVVLEOH DOWKRXJK XQOLNHO\ WKDW ODUJH HTXLSPHQW XVLQJ D

VZLWFKLQJUHOD\IRULWVSRZHURQRIIPD\DIIHFWPRQLWRURSHUDWLRQ'RQRWRSHUDWH
WKHPRQLWRULQVXFKHQYLURQPHQWV

7KLVGHYLFHKDVEHHQWHVWHGDQGIRXQGWRFRPSO\ZLWKWKHOLPLWVIRUPHGLFDOGHYLFHVWR
WKH ,(& DQG WKH 0HGLFDO 'HYLFH 'LUHFWLYH ((& 7KHVH OLPLWV DUH
GHVLJQHG WR SURYLGH UHDVRQDEOH SURWHFWLRQ DJDLQVW KDUPIXO LQWHUIHUHQFH LQ D W\SLFDO
PHGLFDOLQVWDOODWLRQ

+RZHYHU EHFDXVH RI WKH SUROLIHUDWLRQ RI UDGLRIUHTXHQF\ WUDQVPLWWLQJ HTXLSPHQW DQG
RWKHU VRXUFHV RI HOHFWULFDO QRLVH LQ KHDOWK FDUH HQYLURQPHQWV VXFK DV HOHFWURVXUJLFDO
HTXLSPHQW GHILEULOODWRU FHOOXODU SKRQHV PRELOH WZRZD\ UDGLRV HOHFWULFDO DSSOLDQFHV
DQG KLJKGHILQLWLRQWHOHYLVLRQ LW LVSRVVLEOHWKDWKLJKOHYHOVRIVXFKLQWHUIHUHQFH GXHWR
FORVHSUR[LPLW\RUVWUHQJWKRIDVRXUFHPD\DIIHFWPRQLWRURSHUDWLRQ

:$51,1*7KHPRQLWRULVGHVLJQHGIRUXVHLQHQYLURQPHQWVLQZKLFKWKHVLJQDO

FDQ EH REVFXUHG E\ HOHFWURPDJQHWLF LQWHUIHUHQFH 'XULQJ VXFK LQWHUIHUHQFH
PHDVXUHPHQWVPD\VHHPLQDSSURSULDWHRUWKHPRQLWRUPD\QRWVHHPWRRSHUDWH
FRUUHFWO\

0RQLWRUGLVUXSWLRQPD\EHLQGLFDWHGE\HUUDWLFUHDGLQJVFHVVDWLRQRIRSHUDWLRQRURWKHU
LQFRUUHFW IXQFWLRQLQJ ,I WKLV RFFXUV VXUYH\ WKH VLWH WR GHWHUPLQH WKH VRXUFH RI WKLV
GLVUXSWLRQ7U\WKHIROORZLQJDFWLRQVWRVHHLIWKH\HOLPLQDWHWKHGLVUXSWLRQ

z 7XUQHTXLSPHQWLQWKHYLFLQLW\RIIDQGRQWRLVRODWHWKHRIIHQGLQJHTXLSPHQW
z 5HRULHQWRUUHORFDWHWKHLQWHUIHULQJHTXLSPHQW
z ,QFUHDVHWKHVHSDUDWLRQEHWZHHQWKHLQWHUIHULQJHTXLSPHQWDQGWKLVHTXLSPHQW

7KHPRQLWRUJHQHUDWHV XVHVDQGFDQUDGLDWHUDGLRIUHTXHQF\ HQHUJ\,IWKHPRQLWRU LV
QRW LQVWDOOHG DQG XVHG LQ DFFRUGDQFH ZLWK WKHVH LQVWUXFWLRQV WKH PRQLWRU PD\ FDXVH
KDUPIXOLQWHUIHUHQFHZLWKRWKHUGHYLFHVLQWKHYLFLQLW\

,IDVVLVWDQFHLVUHTXLUHGFRQWDFW\RXUORFDOVXSSOLHU

2EWDLQLQJ7HFKQLFDO$VVLVWDQFH

)RUWHFKQLFDOLQIRUPDWLRQDQGDVVLVWDQFHRUWRRUGHUDPRQLWRUVHUYLFHPDQXDOFDOO\RXU
ORFDO VXSSOLHU 7KH VHUYLFH PDQXDO SURYLGHV LQIRUPDWLRQ UHTXLUHG E\ TXDOLILHG VHUYLFH
SHUVRQQHOZKHQVHUYLFLQJWKHPRQLWRU
:KHQ FDOOLQJ \RXU ORFDO VXSSOLHU \RX PD\ EH DVNHG WR SURYLGH WKH VRIWZDUH YHUVLRQ
QXPEHU RI \RXU PRQLWRU 7KH VRIWZDUH YHUVLRQ LV GLVSOD\HG ZKHQ PRQLWRU SRZHU LV
DFWLYDWHG




)$&725<'()$8/76

*HQHUDO
7KH PRQLWRU LV VKLSSHG ZLWK IDFWRU\ GHIDXOW VHWWLQJV $XWKRUL]HG SHUVRQQHO FDQ XVH WKH
SURFHGXUHVGHVFULEHGLQWKHVHUYLFHPDQXDOWRFKDQJHGHIDXOWVHWWLQJV

3DUDPHWHU5DQJHVDQG'HIDXOW6HWWLQJV

7DEOH3DUDPHWHU5DQJHVDQG)DFWRU\'HIDXOWV
)DFWRU\'HIDXOWV
3DUDPHWHU 5DQJHV6HOHFWLRQV 
$GXOW 3HGLDWULF 1HRQDWDO
(&*    
(&*/HDG6HOHFW ,,,,,,D95D9/D9)9 &KHVW/HDG  ,, ,, ,,
(&*6L]H PPP9  $XWR
PPP9 PPP9 PPP9
PPP9
(&*)LOWHU0RGH 0RQLWRU/RZ([WHQG)LOWHU 0RQLWRU 0RQLWRU 0RQLWRU
(&*3DFHU'HWHFW 2Q2II 2II 2II 2II
(&*6ZHHS6SHHG PPV PPV PPV PPV
+5356RXUFH $872(&*35 $872 $872 $872
+535$ODUP,QKLELWLRQ 2Q2II 2II 2II 2II
+5358SSHU$ODUP/LPLWV WR%30 $GXOW3HGL1HR  
%30 %30 %30
%30VWHSV 
+535/RZHU$ODUP/LPLWV WR%30 $GXOW3HGL1HR  
%30 %30 %30
%30VWHSV 
67/HYHO WR +LJK$ODUP WRP9 $GXOW3HGL1HR 
P9 P9 P9
/LPLWV
67/HYHO WR /RZ$ODUP WRP9 $GXOW3HGL1HR 
P9 P9 P9
/LPLWV
$UUK\WKPLD+LJK$ODUP/LPLWV WRPLQ $GXOW3HGL1HR  PLQ PLQ PLQ
1,%3    
$XWRPDWLF0RGH,QWHUYDO 2IIPLQ 2II 2II 2II
,QLWLDO,QIODWH3UHVVXUH 
PP+J $GXOW3HGLDWULF 

N3DN3D  PP+J PP+J PP+J
PP+J N3D N3D N3D
QHRQDWDO 

N3D 
1,%38QLW PP+JN3D PP+J PP+J PP+J
1,%3$ODUP,QKLELWLRQ 2Q2II 2II 2II 2II
1,%36<68SSHU$ODUP WRPP+J $GXOW3HGL 
/LPLWV WRN3D $GXOW3HGL 
PP+J PP+J PP+J
WRPP+J 1HR 
N3D N3D N3D
WRN3D 1HR 
PP+JRUN3DVWHSV 
1,%36<6/RZHU$ODUP WRPP+J $GXOW3HGL 
/LPLWV WRN3D $GXOW3HGL 
PP+J PP+J PP+J
WRPP+J 1HR 
N3D N3D N3D
WRN3D 1HR 
PP+JRUN3DVWHSV 


)DFWRU\'HIDXOWV
3DUDPHWHU 5DQJHV6HOHFWLRQV 
$GXOW 3HGLDWULF 1HRQDWDO
1,%3',$8SSHU$ODUP/LPLWV WRPP+J $GXOW3HGL 
WRN3D $GXOW3HGL 
PP+J PP+J PP+J
WRPP+J 1HR 
N3D N3D N3D
WRN3D 1HR 
PP+JRUN3DVWHSV 
1,%3',$/RZHU$ODUP/LPLWV WRPP+J $GXOW3HGL 
WRN3D $GXOW3HGL 
PP+J PP+J PP+J
aPP+J 1HR 
N3D N3D N3D
WRN3D 1HR 
PP+JRUN3DVWHSV 
1,%30$38SSHU$ODUP WRPP+J $GXOW3HGL 
/LPLWV WRN3D $GXOW3HGL 
PP+J PP+J PP+J
WRPP+J 1HR 
N3D N3D N3D
WRN3D 1HR  
PP+JRUN3DVWHSV 
1,%30$3/RZHU$ODUP WRPP+J $GXOW3HGL 
/LPLWV WRN3D $GXOW3HGL 
PP+J PP+J PP+J
WRPP+J 1HR 
N3D N3D N3D
WRN3D 1HR 
PP+JRUN3DVWHSV 
6S2    
&/RFN 2Q2II 2II 2II 2II
6S2$ODUP,QKLELWLRQ 2Q2II 2II 2II 2II
6S28SSHU$ODUP/LPLWV WR $GXOW3HGL1HR  VWHSV    
6S2/RZHU$ODUP/LPLWV WR $GXOW3HGL1HR  VWHSV    
5HVSLUDWLRQ    
5HVSLUDWLRQ  2Q2II 2Q 2Q 2Q
5HVSLUDWLRQVRXUFH $872$:,0 $872 $872 $872
5HVSLUDWLRQ$ODUP,QKLELWLRQ 2Q2II 2II 2II 2II
558SSHU$ODUP/LPLWV WR%30 %30VWHSV  %30 %30 %30
55/RZHU$ODUP/LPLWV WR%30 %30VWHSV  %30 %30 %30
7HPSHUDWXUH    
7HPS8QLW ƒ&ƒ) ƒ& ƒ& ƒ&
7HPS$ODUP,QKLELWLRQ 2Q2II 2II 2II 2II
7HPS8SSHU$ODUP/LPLWV WRƒ& $GXOW3HGL1HR  
ž&VWHSV  ƒ& ƒ& ƒ&
WRƒ) $GXOW3HGL1HR  ƒ)  ƒ)  ž) 
ƒ)RUƒ)VWHSV 
7HPS/RZHU$ODUP/LPLWV WRƒ& $GXOW3HGL1HR  
ž&VWHSV  ƒ& ƒ& ƒ&
WRƒ) $GXOW3HGL1HR  ƒ)  ƒ)  ƒ) 
ƒ)RUƒ)VWHSV 
(W&2    
(W&28QLW PP+JN3D PP+J PP+J PP+J
$31($$ODUP 2IIVHF  VHF VHF VHF
=HUR&DOLEUDWLRQ <HV1R 1R 1R 1R
(W&2$ODUP,QKLELWLRQ 2Q2II 2II 2II 2II
,Q&2$ODUPOLQKLELWLRQ 2Q2II 2II 2II 2II
(W&28SSHU$ODUP/LPLWV WRPP+J $GXOW3HGL1HR 
PP+JVWHSV  PP+J PP+J PP+J
WRN3D $GXOW3HGL1HR  N3D N3D N3D
N3DVWHSV    
WR $GXOW3HGL1HR 


)DFWRU\'HIDXOWV
3DUDPHWHU 5DQJHV6HOHFWLRQV 
$GXOW 3HGLDWULF 1HRQDWDO
RVWHSV 
(W&2/RZHU$ODUP/LPLWV WRPP+J $GXOW3HGL1HR 
PP+JVWHSV 
PP+J PP+J PP+J
WRN3D $GXOW3HGL1HR 
N3D N3D N3D
N3DVWHSV 
  
WR $GXOW3HGL1HR 
RVWHSV 
,Q&28SSHU$ODUP/LPLWV WRPP+J $GXOW3HGL1HR 
PP+JVWHSV 
PP+J PP+J PP+J
WRN3D $GXOW3HGL1HR 
N3D N3D N3D
N3DVWHSV 
  
WR $GXOW3HGL1HR 
VWHSV 
,Q&2/RZHU$ODUP/LPLWV WRPP+J $GXOW3HGL1HR 
PP+JVWHSV 
PP+J PP+J PP+J
WRN3D $GXOW3HGL1HR 
N3D N3D N3D
N3DVWHSV 
  
WR $GXOW3HGL1HR 
VWHSV 
2WKHUV   
3DWLHQW0RGH $GXOW3HGLDWULF1HRQDWDO $GXOW
7UHQG&OHDU <HV1R 1R
3ULQW6SHHG  PPVPPV PPV
3ULQW0RGH  2QH6KRW&RQWLQXRXV 2QH6KRW
3ULQW2Q$ODUP  2Q2II 2II
'LVSOD\7LPH,QWHUYDO VHFPLQ VHF
1RUPDO1,%3$ODUP1RUPDO1,%3
7UHQG'LVSOD\6HOHFW $//
1RUPDO$ODUP1,%3$ODUP$//
$ODUP9ROXPH  
4569ROXPH 2II 
.H\%HHS9ROXPH 2II 
6DYH&XUUHQW9DOXHVDV
<HV1R 1R
3RZHU2Q'HIDXOW 
6DYH)DFWRU\'HIDXOW6HWWLQJ
<HV1R 1R
DV3RZHU2Q'HIDXOW 
2IIPLQ,QGHILQLWH
$ODUP6XVSHQVLRQ3HULRG  ,QGHILQLWH
$ODUP,QKLELWLRQ 
$ODUP6LOHQFH3HULRG  VHF VHF
$ODUP5HPLQGHU7RQH  2IIPLQ PLQ
$XGLEOH$ODUP7\SH  *1,(& *1
䚐ạ㛨  .RUHDQ  ୰ᩥ  &KLQHVH 
(QJOLVK)UDQoDLV )UHQFK 'HXWVFK
*HUPDQ ,WDOLDQR ,WDOLDQ  ᪥ᮏㄒ 
-DSDQHVH 3RUWXJXrV 3RUWXJXHVH 
/DQJXDJH  'DQVN 'DQLVK 1HGHUODQGV 'XWFK  (QJOLVK
6XRPL )LQQLVK ǼȜȜȘȞȚțȐ *UHHN 1RUVN
1RUZHJLDQ 3ROVNL 3ROLVK Ɋɭɫɫɤɢɣ
5XVVLDQ &DVWHOODQR 6SDQLVK 6YHQVND
6ZHGLVK 
<HDU0RQWK'D\0RQWK'D\<HDU
'DWH)RUPDW  <HDU0RQWK'D\
'D\0RQWK<HDU 
1RWH $QDVWHULVN E\DSDUDPHWHULQWKHDERYHWDEOHLQGLFDWHVWKDWWKHSDUDPHWHUFDQRQO\EHFKDQJHGE\DXWKRUL]HGSHUVRQQHODV
GHVFULEHGLQWKHVHUYLFHPDQXDO
1RWH$VWHULVNV E\DSDUDPHWHULQWKHDERYHWDEOHLQGLFDWHWKHVHWWLQJVRQO\ZKHQDQRSWLRQDOSULQWHULVLQVWDOOHGLQWKHPRQLWRU









7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN




63(&,),&$7,21

'LVSOD\
6FUHHQ6L]H ´PHDVXUHGGLDJRQDOO\DFURVVWKH7)7/&'VFUHHQ
6FUHHQ7\SH&RORU /LTXLG&U\VWDO'LVSOD\ /&' &RORU
&ROG&DWKRGH)OXRUHVFHQW%DFNOLW
5HVROXWLRQ îSL[HO
1XPEHURI7UDFHV ZDYHIRUPV

&RQWUROV
-RJGLDOFRQWURO
6WDQGDUG  VRIW EXWWRQV $ODUP 6WRS 1,%3 6WDUW6WRS +RPH 3ULQW
3RZHU 

$ODUPV
&DWHJRULHV 3DWLHQW6WDWXVDQG6\VWHP6WDWXV
3ULRULWLHV /RZ0HGLXPDQG+LJK3ULRULWLHV
1RWLILFDWLRQ $XGLEOHDQG9LVXDO
6HWWLQJ 'HIDXOWDQG,QGLYLGXDO
$ODUP9ROXPH/HYHO WRG%

3K\VLFDO&KDUDFWHULVWLFVDQG3ULQWHU

,QVWUXPHQW
'LPHQVLRQV îî PP  :î+î' 
LQFOXGLQJDKDQGOHDQGH[FOXGLQJRSWLRQVDQGDFFHVVRULHV
:HLJKW $SSUR[NJH[FOXGLQJRSWLRQDOFRQILJXUDWLRQV 
DQGDFFHVVRULHV
'HJUHH RI 3URWHFWLRQ (&* 7\SH &) ZLWK GHILEULOODWRU SURWHFWLRQ
DJDLQVW (OHFWULF  1,%3            7\SH &) ZLWK GHILEULOODWRU SURWHFWLRQ
6KRFN 6S2            7\SH &) ZLWK GHILEULOODWRU SURWHFWLRQ
7HPSHUDWXUH  7\SH &) ZLWK GHILEULOODWRU SURWHFWLRQ
(W&2 7\SH &) ZLWK GHILEULOODWRU SURWHFWLRQ
0RGH RI 2SHUDWLRQ &RQWLQXRXV
&ODVVLILFDWLRQ &ODVV ,,E 0'' $QQH[ ,; 5XOH0(''(9  5HY 

3ULQWHU 2SWLRQDO 
7\SH 7KHUPDO
:HLJKW J
5HVROXWLRQ GRWPP
1XPEHURI&KDQQHOV WRFKDQQHOV
3DSHU7\SH 7KHUPDO
3DSHU:LGWK PP
3ULQWHU6SHHG PPVDQGPPV


(OHFWULFDO
,QVWUXPHQW
3RZHU5HTXLUHPHQWV $&0DLQV
WR9a+]9$
)XVHV 4¶W\7$YROWV7$YROWV
%DWWHU\ RSWLRQ 
7\SH /LLRQEDWWHU\
2SHUDWLQJWLPH KRXU P$K KRXUV P$K KRXUV P$K 
$WWKHIROORZLQJFRQGLWLRQ
QRSULQWLQJ 
QRH[WHUQDOFRPPXQLFDWLRQ 
QRDXGLEOHDODUPVRXQG
RQH1,%3PHDVXUHPHQWSHUPLQXWHVDWƒ&
9P$K KRXUW\SH 
9ROWDJH&DSDFLW\ 9P$K KRXUVW\SH 
9P$K KRXUVW\SH 
5HFKDUJH 2YHURUKRXUVZLWKPRQLWRUWXUQHGRQRII
PRQWKVQHZEDWWHU\IXOO\FKDUJHG
/LIH&\FOH $IWHU  PRQWKV VWRUDJH WKH 0 ZRXOG UXQ IRU  RI
VWDWHGEDWWHU\OLIH
&RPSOLDQFH ((&

(QYLURQPHQWDO&RQGLWLRQV

2SHUDWLRQ
7HPSHUDWXUH WRƒ& WRƒ) 
+XPLGLW\ WR5+QRQFRQGHQVLQJ
$OWLWXGH WRK3D
7UDQVSRUWDQG6WRUDJH LQVKLSSLQJFRQWDLQHU 
7HPSHUDWXUH íƒ&WRƒ& íƒ)WRƒ) 
+XPLGLW\ WR5+QRQFRQGHQVLQJ
$OWLWXGH WRK3D
1RWH 7KH V\VWHP PD\ QRW PHHW LWV SHUIRUPDQFH VSHFLILFDWLRQV LI VWRUHG RU XVHG
RXWVLGHWKHVSHFLILHGWHPSHUDWXUHDQGKXPLGLW\UDQJH



7RQH'HILQLWLRQ
+LJK3ULRULW\$ODUP7RQH
9ROXPHOHYHO $GMXVWDEOH OHYHOa 
3LWFK “+]  +]
3XOVHZLGWK “PVHF  PVHF ,(& PVHF *1 
SXOVHVSHUVHFVHFLQWHUEXUVW ,(& 
1XPEHURISXOVHV
SXOVHVSHUVHF *1 
5HSHWLWLRQV &RQWLQXDOO\
0HGLXP3ULRULW\$ODUP7RQH
9ROXPHOHYHO $GMXVWDEOH OHYHOa 
3LWFK “+]  +]
3XOVHZLGWK “PVHF  PVHF  ,(& PVHF *1 
SXOVHVSHUVHFVHFLQWHUEXUVW ,(& 
1XPEHURISXOVHV
SXOVHVSHUVHF *1 
5HSHWLWLRQV &RQWLQXDOO\
/RZ3ULRULW\$ODUP7RQH
9ROXPHOHYHO $GMXVWDEOH OHYHOa 
3LWFK “+]  +]
3XOVHZLGWK “PVHF  PVHF  ,(& PVHF *1 
SXOVHSHUVHFVHFLQWHUEXUVW ,(& 
1XPEHURISXOVHV
SXOVHSHUVHFVHFLQWHUEXUVW *1 
$ODUP5HPLQGHU7RQH
9ROXPHOHYHO 1RWFKDQJHDEOH
3LWFK “+]  +]
3XOVHZLGWK “PVHF  PVHF
1XPEHURISXOVHV SXOVHSHUVHFRQGPLQPLQLQWHUEXUVW
5HSHWLWLRQV &RQWLQXDOO\
+5357RQH
9ROXPHOHYHO $GMXVWDEOH 2IIOHYHOa 
+] (&* 
3LWFK “+]   6S2 +] 6S2WR 
±6S2
   +] 6S2EHORZ 
3XOVHZLGWK “PVHF  PVHF
1XPEHURISXOVHV 1$
5HSHWLWLRQV 1RUHSHDW
.H\%HHS
9ROXPHOHYHO $GMXVWDEOH 2IIOHYHOa 
3LWFK “+]  +] YDOLG 
+] LQYDOLG 
3XOVHZLGWK “PVHF  PVHF
1XPEHURISXOVHV 1$
5HSHWLWLRQV 1RUHSHDW
32673DVV7RQH
9ROXPHOHYHO 1RWFKDQJHDEOH
3LWFK “+]  +]
3XOVHZLGWK “PVHF  PVHF
1XPEHURISXOVHV 1$
5HSHWLWLRQV 1RUHSHDW


0HDVXUHPHQW3DUDPHWHUV

(&*
+HDUW5DWH
0HDVXUHPHQW5DQJH WR%30
$FFXUDF\ “%30RU“ZKLFKHYHULVJUHDWHU
$YHUDJH5HVSRQVH7LPH VHFRQGV IURPWR%30 
VHFRQGV IURPWR%30 
7DOO7ZDYH5HMHFWLRQ PD[LPXP7ZDYHDPSOLWXGHP9
(&* (OHFWURFDUGLRJUDSK 
/HDGV /HDG
/HDG,,,,,,D95D9/D9)9 &KHVW/HDG 
/HDG2II'HWHFWLRQ 'HWHFWHGDQGGLVSOD\HG
3DFHU'HWHFWLRQ 'HWHFW SDFHU SXOVHV RI “P9 WR “P9 ZLWK SXOVH
ZLGWKV RI  WR PVHF DQG ULVH WLPHV  RI ZLGWK
QRWWRH[FHHGPVHF
,QSXW
,QSXW,PSHGDQFH 0RKPRUPRUH
,QSXW'\QDPLF5DQJH “P9$&“P9'&
9ROWDJH5DQJH “P9a“P9
6LJQDO:LGWK WRPV 4WR6 
2XWSXW
)UHTXHQF\5HVSRQVH %DQGZLGWK 
/RZ([WHQG WR+]
)LOWHU WR+]
0RQLWRU WR+]
+XPILOWHU +]DQG+]
(&*6L]H  $XWRPPP9
'LVSOD\6ZHHS6SHHGV PPVHFPPVHFDQGPPVHF
'LVSOD\6HQVLWLYLW\ PPP9 î 
3DFLQJ3XOVH'HWHFWLRQ 2Q2II
67/HYHO$QDO\VLV 2Q2II
$UUK\WKPLD'HWHFWLRQ 2Q2II
(OHFWURGH'LVFRQQHFW$ODUP 'LVSOD\DQGRUVRXQG
&055 G%RUPRUH
'HILEULOODWRU'LVFKDUJH VHFSHU,(&
5HFRYHU\
'HILEULOODWRU3URWHFWLRQ 3URWHFWHG
(&* $UUK\WKPLD6XSSOHPHQWDO,QIRUPDWLRQDVUHTXLUHGE\$$0,(& 
+HDUWUDWHFDOFXODWLRQ +HDUWUDWHLVFRPSXWHGE\DYHUDJLQJWKHPRVW
UHFHQW55LQWHUYDOVLIWKHUHLVPRUHWKDQ456IRU
VHF
,IWKHUHLVOHVVWKDQ456KHDUWUDWHLVFRPSXWHG
E\DYHUDJLQJ55LQWHUYDOVRFFXUULQJIRUVHF


+HDUWUDWHPHWHUDFFXUDF\ 3URYLGHVFRUUHFWKHDUWUDWHVDVIROORZV
DQGUHVSRQVHWRLUUHJXODU 
UK\WKP 9HQWULFXODUELJHPLQ\WRESP
6ORZDOWHUQDWLQJYHQWULFXODUELJHPLQ\WRESP
5DSLGDOWHUQDWLQJYHQWULFXODUELJHPLQ\WR
ESP
%LGLUHFWLRQDOV\VWROHVWRESP
5HVSLUDWLRQOHDGVRII 5HVSLUDWLRQIUHTXHQF\WRN+] 
VHQVLQJDQGDFWLYHQRLVH /HDGRIIVHQVLQJFXUUHQW 
VXSSUHVVLRQ DPSOHVVWKDQX$
        FRPPRQOHVVWKDQX$
7LPHWRDODUPIRUFDUGLDF $YHUDJHVHF
VWDQGVWLOO
7LPHWRDODUPIRUORZKHDUW $YHUDJHVHF
UDWH
7LPHWRDODUPIRUKLJKKHDUW $YHUDJHVHF
UDWH
7LPHWRDODUPIRU 9HQWULFXODUWDFK\FDUGLDZDYHIRUP 
WDFK\FDUGLD $PSOLWXGHP9+HDUWUDWHESPVHF
2QHKDOIZDYHIRUP P9 VHF
7ZLFHZDYHIRUP P9 VHF

$PSOLWXGHP9+HDUWUDWHESPVHF
2QHKDOIZDYHIRUP P9 VHF
7ZLFHZDYHIRUP P9 VHF



5HVSLUDWLRQ
,05HVSLUDWLRQ
7HFKQLTXH ,PSHGDQFH3QHXPRJUDSK\
5DQJH WREUHDWKVPLQ
$FFXUDF\ “EUHDWKVPLQ
/HDGV 5$WR/$
/HDG2II&RQGLWLRQ 'HWHFWHGDQGGLVSOD\HG
'HILEULOODWRU3URWHFWLRQ 3URWHFWHG
$:5HVSLUDWLRQ
7HFKQLTXH 1RQGLVSUHVLYH,QIUDUHG6SHFWURVFRS\
5DQJH WREUHDWKVPLQ
$FFXUDF\ “EUHDWKVPLQ
'LVSOD\6ZHHS6SHHGV PPVPPVPPV
:DYH6L]H $XWR/HYHOa

1,%3
3XOVH5DWH
3XOVH5DWH5DQJH $GXOW3HGLDWULF   WR%30
1HRQDWDO        WR%30
3XOVH5DWH$FFXUDF\ “%30RU“ZKLFKHYHULVJUHDWHU
1,%3 1RQ,QYDVLYH%ORRG3UHVVXUH 
7HFKQLTXH 2VFLOORPHWULF0HDVXUHPHQW
0HDVXUHPHQW0RGHV 0$18$/$872DQG&217
1,%3$8720RGH 2IIPLQXWHV
,QWHUYDOV
0HDVXUHPHQW5DQJH $GXOW3HGLDWULF
6<6     WRPP+J


0$3     WRPP+J
',$      WRPP+J
1HRQDWDO
6<6     WRPP+J


0$3     WRPP+J
',$      WRPP+J
1,%3$FFXUDF\ 0HDQHUURUDQGVWDQGDUGGHYLDWLRQSHU$16,$$0,
63$
3UHVVXUH'LVSOD\5DQJH $GXOW3HGLDWULF   WRPP+J
1HRQDWDO        WRPP+J
3UHVVXUH'LVSOD\ :LWKLQ“PP+J
$FFXUDF\
,QLWLDO&XII,QIODWH $GXOW3HGLDWULF
3UHVVXUH PP+J
N3D 
1HRQDWDO
PP+J
N3D 
$XWRPDWLF&XII'HIODWLRQ 0HDVXUHPHQWWLPHH[FHHGLQJVLQDGXOWSHGLDWULF
VLQQHRQDWDO RUPD[LPXPSUHVVXUHYDOXHH[FHHGLQJ
PP+JLQDGXOW PP+JLQQHRQDWDO 


2YHUSUHVVXUH3URWHFWRU $GXOW3HGLDWULFPP+J 1& PP+J 6)& 
1HRQDWDOPP+J 1& PP+J 6)& 
'HILEULOODWRU3URWHFWLRQ 3URWHFWHG
0HDVXUHPHQW6SHHG $ERXWVHFRQGV
$WWKHIROORZLQJFRQGLWLRQ
$GXOW
&XIIVL]HFP
6<6PP+J
0$3PP+J
',$PP+J35%30
0DQXDO0HDVXUHPHQWV PP+J 

6S2
3XOVH5DWH
5DQJH 1HOOFRUPRGXOH    WR%30
0HGLDQDPRGXOH  WR%30
$FFXUDF\ 1HOOFRUPRGXOH    “%30
0HGLDQDPRGXOH  “RU%30ZKLFKHYHULVJUHDWHU
6S2
5DQJH 1HOOFRUPRGXOH    WR
0HGLDQDPRGXOH   WR
/RZ3HUIXVLRQ WR
1HOOFRUPRGXOHRQO\ 
$FFXUDF\ 1HOOFRUPRGXOH
:LWKRXW,QWHUIHUHQFH$GXOW3HGLDWULF 
WR“GLJLWV
WRXQVSHFLILHG
:LWKRXW,QWHUIHUHQFH1HRQDWDO 
WR“GLJLWV
WRXQVSHFLILHG
/RZ3HUIXVLRQ      WR“GLJLWV
WRXQVSHFLILHG
0HGLDQDPRGXOH
:LWKRXW,QWHUIHUHQFH$GXOW3HGLDWULF1HRQDWDO
WR“GLJLWV
WRXQVSHFLILHG
'LVSOD\8SGDWH :LWKLQVHFRQGV
'LVSOD\6ZHHS6SHHGV PPVHFPPVHFDQGPPVHF
'HILEULOODWRU3URWHFWLRQ 3URWHFWHG
1HRQDWDOVSHFLILFDWLRQVDUHVKRZQIRUQHRQDWDOVHQVRUVZLWKWKHPRQLWRU6DWXUDWLRQDFFXUDF\
ZLOOYDU\E\VHQVRUW\SHDVVSHFLILHGE\WKHPDQXIDFWXUHU
1RWH7KHZDYHOHQJWKUDQJHRIWKHOLJKWHPLWWHGDUHQPDQGQPZLWKWKHHQHUJ\QRW
H[FHHGLQJ P: IRU 1HOOFRUPRGXOH  DQG QP ZLWKWKHHQHUJ\QRW H[FHHGLQJP:
DQGQPZLWKWKHHQHUJ\QRWH[FHHGLQJaP: IRU0HGLDQDPRGXOH 


&DSQRJUDSK\
3DUDPHWHU'LVSOD\HG (W&2,Q&2
5DQJH  PP+JaPP+J N3DaN3Da 
$FFXUDF\ PP+J“PP+JRIUHDGLQJ
PP+J“RIUHDGLQJ
PP+J“RIUHDGLQJ
PP+J“RIUHDGLQJ
'LVSOD\$FFXUDF\ “PP+J
5HVSRQVH7LPH 0DLQVWUHDP/HVVWKDQPV
6LGHVWUHDP/HVVWKDQVHF 
%DURPDWULF3UHVVXUH WRPHWHUV
&RUUHFWLRQ WRIHHW 
WRPP+J$XWRPDWLF
*DV&RPSHQVDWLRQ 8VHUVHOHFWLYHDW2!DQG12!
6WDELOLW\DQGGULIW 6KRUWWHUPGULIW/HVVWKDQPP+JRYHUKRXUV
/RQJWHUPGULIW$FFXUDF\VSHFLILFDWLRQZLOOEHPDLQWDLQHG
RYHUDKRXUSHULRG
$FFXUDF\&KDQJHIRU PP+J“PP+JDGGLWLRQDOHUURU
LQWHUIHULQJ*DVHVDQG PP+J“DGGLWLRQDOHUURU
9DSRUV$QHVWKHWLFDQG PP+J“DGGLWLRQDOHUURU
LQWHUIHULQJDJHQWV PP+J“DGGLWLRQDOHUURU

$GGLWLRQDOZRUVWFDVHHUURUZKHQFRPSHQVDWLRQIRU2
DQG12LVFRUUHFWO\VHOHFWHGIRUDFWXDOIUDFWLRQDOJDV
FRQVWLWXHQWVSUHVHQW
:DUP8S7LPH PLQXWHVPD[LPXP
6ZHHS6SHHGV PPVHFPPVHFDQGPPVHF
6RXQG1RLVH/HYHO /HVV WKDQ G% ZKHQ DPELHQW VRXQG SUHVVXUH OHYHO LV
G%

7HPSHUDWXUH
7KHUPLVWRU7HPS
3UREH7\SH 7KHUPLVWRUSUREH<6,VHULHVDQGVHULHV
0HDVXUHPHQW0HWKRG 7KHUPLVWRU
5DQJH WRƒ& WRƒ) 
'LVSOD\$FFXUDF\ “ƒ&
3UREH$FFXUDF\ <6,VHULHV“ƒ&
<6,VHULHV“ƒ&
'HILEULOODWRU3URWHFWLRQ 3URWHFWHG


7UHQGV
7\SHV *UDSKLFDODQG7DEXODU
0HPRU\ VDYHVWRWDOGDWD
VDYHVGDWHDQGWLPH
VDYHVDODUPFRQGLWLRQ
VDYHV +535 GDWD +HDUW 5DWH 3XOVH 5DWH IURP 6S2
DQG1,%3 
VDYHV1,%36S25HVS7HPS(W&2PHDVXUHPHQWV
*UDSKLFDO)RUPDW 7RWDOJUDSKV
z DJUDSKIRU+5355HVS6S2SDUDPHWHUV
z DJUDSKIRU1,%37HPS(W&2SDUDPHWHUV
8VHUVHOHFWDEOHHDFKSDUDPHWHUWREHGHVLUHG
7DEXODU)RUPDW 2QHWDEOHIRUDOOSDUDPHWHUV
'LVSOD\ OLVWV
'LVSOD\7LPH,QWHUYDO VHFPLQXWHV


&RPSOLDQFH


,WHP &RPSOLDQWZLWK
&ODVVLILFDWLRQ &ODVV, RQ$&SRZHU ,QWHUQDOO\SRZHUHG RQEDWWHU\SRZHU 
7\SHRISURWHFWLRQ 7\SH&)±$SSOLHGSDUW
0RGHRIRSHUDWLRQ &RQWLQXRXV
'HJUHHRISURWHFWLRQ ,3; SURYLGHGE\HQFORVXUHV 
*HQHUDO ((&'LUHFWLYHVIRUPHGLFDOGHYLFHV
 &)5&RGHRIIHGHUDOUHJXODWLRQV
 (&:DVWHHOHFWULFDODQGHOHFWURQLFHTXLSPHQWGLUHFWLYH :((( 
 ((&%DWWHU\GHFODUDWLRQGLUHFWLYH
 ((&%DWWHU\GLVSRVDOGLUHFWLYH
 (&%DWWHU\GLUHFWLYH
 ,624XDOLW\V\VWHPV0HGLFDO'HYLFHV5HTXLUHPHQWVIRU
UHJXODWLQJSXUSRVHV
 ,62$5LVNDQDO\VLVPDQDJHPHQWV±PHGLFDOGHYLFHV
 ,(&$$
*HQHUDOUHTXLUHPHQWVIRUVDIHW\RIPHGLFDOHOHFWULFDOHTXLSPHQW
 ,(&'HJUHHRISURWHFWLRQSURYLGHGE\HQFORVXUHV ,3; 
 (1,62&OLQLFDOLQYHVWLJDWLRQRIPHGLFDOGHYLFHVIRUKXPDQ
VXEMHFWV±SDUW*HQHUDOUHTXLUHPHQWV
 $$0,+(+XPDQIDFWRUVHQJLQHHULQJJXLGHOLQHVDQGSUHIHUUHGSUDFWLFHV
IRUWKHGHVLJQRIPHGLFDOGHYLFHV
 ,(&&ROODWHUDOVWDQGDUGIRUPHGLFDOHOHFWULFDOV\VWHPV
 ,(&&ROODWHUDOVWDQGDUGIRUSURJUDPPDEOHPHGLFDOV\VWHPV
 ,(&&ROODWHUDOVWDQGDUGIRUXVDELOLW\
 ,62%LRORJLFDOHYDOXDWLRQRIPHGLFDOGHYLFHV±3DUW(YDOXDWLRQ
DQGWHVWLQJ
 ,62%LRORJLFDOHYDOXDWLRQRIPHGLFDOGHYLFHV±3DUW7HVWVIRULQ
YLWURF\WRWR[LFLW\
 ,62%LRORJLFDOHYDOXDWLRQRIPHGLFDOGHYLFHV±3DUW7HVWVIRU
LUULWDWLRQDQGGHOD\HGW\SHK\SHUVHQVLWLYLW\
 ,(&
3DUWLFXODUUHTXLUHPHQWVIRUPXOWLIXQFWLRQSDWLHQWPRQLWRULQJHTXLSPHQW
$ODUPV ,(&$ODUPV\VWHPVUHTXLUHPHQWVWHVWVDQGJXLGDQFHVLQ
PHGLFDOHOHFWULFDOHTXLSPHQWVV\VWHPV
(OHFWURFDUGLRJUDSK ,(&3DUWLFXODUUHTXLUHPHQWVIRUWKHVDIHW\RI
(OHFWURFDUGLRJUDSKLFPRQLWRULQJHTXLSPHQW
 $$0,(&&DUGLDFPRQLWRUVKHDUWUDWHPHWHUVDQGDODUPV
 $$0,(&$(&*FDEOHDQGOHDGV
1RQLQYDVLYHEORRG $$0,63$(OHFWURQLFRUDXWRPDWHGVSK\JPRPDQRPHWHUV
SUHVVXUH (1$1RQLQYDVLYHVSK\JPRPDQRPHWHUV
 (16XSSOHPHQWDU\UHTXLUHPHQWVIRUHOHFWULFDOPHFKDQLFDOEORRG
SUHVVXUHPHDVXULQJV\VWHPV
 (11RQLQYDVLYHVSK\JPRPDQRPHWHUV7HVWSURFHGXUHVWR
GHWHUPLQHWKHRYHUDOOV\VWHPDFFXUDF\RIDXWRPDWHGQRQLQYDVLYH
VSK\JPRPDQRPHWHUV
 ,(&3DUWLFXODUUHTXLUHPHQWVIRUWKHVDIHW\LQFOXGLQJHVVHQWLDO
SHUIRUPDQFHRIDXWRPDWLFF\FOLQJLQGLUHFWEORRGSUHVVXUHPRQLWRULQJHTXLSPHQW


,WHP &RPSOLDQWZLWK
2[\JHQVDWXUDWLRQ ,62%DVLFVDIHW\ HVVHQWLDOSHUIRUPDQFHRISXOVHR[LPHWHUIRU
PHGLFDOXVH
7HPSHUDWXUH (1
PRQLWRULQJ 3HUIRUPDQFHRIHOHFWULFDOWKHUPRPHWHUVIRUFRQWLQXRXV0HDVXUHPHQW
&DSQRJUDSK\ ,62
3DUWLFXODUUHTXLUHPHQWVIRUWKHEDVLFVDIHW\DQGHVVHQWLDOSHUIRUPDQFHRI
UHVSLUDWRU\JDVPRQLWRUV
(OHFWURPDJQHWLF ,(&VXEFODXVHDQG
FRPSDWLELOLW\ ,(&$
(OHFWURPDJQHWLFFRPSDWLELOLW\UHTXLUHPHQWV WHVW
 ,(&+DUPRQLFHPLVVLRQ(G
 ,(&9ROWDJHIOXFWXDWLRQV)OLFNHUHPLVVLRQ(G
 ,(&(OHFWURVWDWLFGLVFKDUJH(G
 ,(&5DGLDWHG5)HOHFWURPDJQHWLFILHOG(G
 ,(&(OHFWULFDOIDVWWUDQVLHQWEXUVW(G
 ,(&6XUJHFXUUHQW(G
 ,(&&RQGXFWHGGLVWXUEDQFHVLQGXFHGE\5)ILHOG(G
 ,(&3RZHUIUHTXHQF\ +] PDJQHWLFILHOG(G
 ,(&9ROWDJHGLSVVKRUWLQWHUUXSWLRQDQGYROWDJHYDULDWLRQRQ
SRZHUVXSSO\LQSXWOLQHV(G
 &,635 (1 /LPLWVDQGPHWKRGVRIPHDVXUHPHQWRIUDGLR
GLVWXUEDQFHFKDUDFWHULVWLFVRILQGXVWULDOVFLHQWLILFDQGPHGLFDO ,60 UDGLR
IUHTXHQF\HTXLSPHQW5)(PLVVLRQV*URXS&ODVV%
3DFNDJH ,67$ 3URFHGXUH$ 3UH6KLSPHQWWHVWSURFHGXUHV 3DFNDJH 
 $670'6WDQGDUGSUDFWLFHIRUSHUIRUPDQFHWHVWLQJRIVKLSSLQJ
FRQWDLQHUVDQGV\VWHP
 ,(&(QYLURQPHQWDOWHVWLQJ3DUW*HQHUDOJXLGHOLQHV
5HOLDELOLW\ ,(&(QYLURQPHQWDOWHVWLQJ±6KRFN
 ,(&(QYLURQPHQWDOWHVWLQJ±9LEUDWLRQ
 ,(&(QYLURQPHQWDOWHVWLQJYLEUDWLRQEURDGEDQGUDQGRP
GLJLWDOFRQWURO DQGJXLGDQFH
/DEHOLQJ (1
,QIRUPDWLRQVXSSOLHGE\WKHPDQXIDFWXUHUZLWKPHGLFDOGHYLFHV
0DUNLQJ ,(&75
*UDSKLFDOV\PEROVIRUHOHFWULFDOHTXLSPHQWLQPHGLFDOSUDFWLFH
 (1*UDSKLFDOV\PEROVIRUXVHLQWKHODEHOLQJRIPHGLFDOGHYLFHV
 ,62*UDSKLFDOV\PEROVIRUXVHRQHTXLSPHQWLQGH[DQGV\QRSVLV
 (1
*UDSKLFDOV\PEROVIRUXVHRQHTXLSPHQWRYHUYLHZDQGDSSOLFDWLRQ
 (1*UDSKLFDOV\PEROVIRUXVHRQHTXLSPHQWV\PERORULJLQDOV
 (10DUNLQJRIHOHFWULFDODQGHOHFWURQLFHTXLSPHQWLQDFFRUGDQFH
ZLWKDUWLFOH,,  RIGLUHFWLYH(& :((( 



0DQXIDFWXUHU¶V'HFODUDWLRQ

:$51,1*)RUEHVWSURGXFWSHUIRUPDQFHDQGPHDVXUHPHQWDFFXUDF\XVHRQO\
 DFFHVVRULHVVXSSOLHGRUUHFRPPHQGHGE\0HGLDQD8VHDFFHVVRULHVDFFRUGLQJ
WRWKHPDQXIDFWXUHU¶VGLUHFWLRQVIRUXVHDQG \RXUIDFLOLW\¶VVWDQGDUGV7KHXVH
RI DFFHVVRULHV WUDQVGXFHUV DQG FDEOHV RWKHU WKDQ WKRVH VSHFLILHG PD\ UHVXOW
LQLQFUHDVHGHPLVVLRQDQGRUGHFUHDVHGLPPXQLW\RIWKH0

7KH 0 LV VXLWDEOH IRU XVH LQ WKH VSHFLILHG HOHFWURPDJQHWLF HQYLURQPHQW 7KH
FXVWRPHU DQGRU XVHU RI WKH 0 VKRXOG DVVXUH WKDW LW LV XVHG LQ DQ HOHFWURPDJQHWLF
HQYLURQPHQWDVGHVFULEHGEHORZ

7DEOH(OHFWURPDJQHWLF(PLVVLRQV ,(& 

(PLVVLRQ7HVW &RPSOLDQFH (OHFWURPDJQHWLF(QYLURQPHQW 


5)HPLVVLRQ *URXS 7KH0PXVWHPLWHOHFWURPDJQHWLFHQHUJ\
&,635 LQRUGHUWRSHUIRUPLWVLQWHQGHGIXQFWLRQ
1HDUE\HOHFWURQLFHTXLSPHQWPD\EH
DIIHFWHG
5)HPLVVLRQV &ODVV% 7KH0LVVXLWDEOHIRUXVHLQDOO
&,635 HVWDEOLVKPHQWV
+DUPRQLFHPLVVLRQV &ODVV$
,(&
9ROWDJHIOXFWXDWLRQVIOLFNHU &RPSOLHV
HPLVVLRQ
,(&

7DEOH(OHFWURPDJQHWLF,PPXQLW\ ,(& 

,PPXQLW\7HVW ,(& &RPSOLDQFH (OHFWURPDJQHWLF


7HVW/HYHO /HYHO (QYLURQPHQW*XLGDQFH
(OHFWURVWDWLF “N9FRQWDFW “N9FRQWDFW )ORRUVKRXOGEHZRRG
GLVFKDUJH (6'  “N9DLU “N9DLU FRQFUHWHRUFHUDPLFWLOH,I
,(& IORRUVDUHFRYHUHGZLWK
V\QWKHWLFPDWHULDOWKHUHODWLYH
KXPLGLW\VKRXOGEHDWOHDVW

(OHFWULFIDVW “N9IRU  “N9IRU 0DLQVSRZHUTXDOLW\VKRXOGEH
WUDQVLHQWEXUVW SRZHUVXSSO\OLQHV SRZHUVXSSO\ WKDWRIDW\SLFDOFRPPHUFLDO
,(& “N9IRU OLQHV DQGRUKRVSLWDOHQYLURQPHQW
 LQSXWRXWSXWOLQHV “N9IRU
LQSXWRXWSXWOLQHV
6XUJH “N9GLIIHUHQWLDO “N9GLIIHUHQWLDO 0DLQVSRZHUTXDOLW\VKRXOGEH
,(& PRGH PRGH WKDWRIDW\SLFDOFRPPHUFLDO
 “N9  “N9 DQGRUKRVSLWDOHQYLURQPHQW
FRPPRQPRGH FRPPRQPRGH
9ROWDJHGLSV 87 87 0DLQVSRZHUTXDOLW\VKRXOGEH
VKRUW !GLSLQ87  !GLSLQ87  WKDWRIDW\SLFDOFRPPHUFLDO
LQWHUUXSWLRQVDQG IRUF\FOH IRUF\FOH DQGRUKRVSLWDOHQYLURQPHQW,I
YROWDJH WKHXVHURIWKH0UHTXLUHV
YDULDWLRQVRQ FRQWLQXHGRSHUDWLRQGXULQJ
SRZHUVXSSO\ SRZHUPDLQVLQWHUUXSWLRQLWLV
UHFRPPHQGHGWKDWWKH0EH
SRZHUHGIURPDQ
,(& 87 87 XQLQWHUUXSWLEOHSRZHUVXSSO\RU
GLSLQ87  GLSLQ87  EDWWHU\
IRUF\FOHV IRUF\FOHV 
 87 87
GLSLQ87  GLSLQ87 
IRUF\FOHV IRUF\FOHV


,PPXQLW\7HVW ,(& &RPSOLDQFH (OHFWURPDJQHWLF
7HVW/HYHO /HYHO (QYLURQPHQW*XLGDQFH
 87 87 
GLSLQ87  GLSLQ87 
IRUVHF IRUVHF
3RZHU $P $P ,WPD\EHQHFHVVDU\WRSRVLWLRQ
IUHTXHQF\ WKH0IXUWKHUIURPWKH
+]  VRXUFHVRISRZHUIUHTXHQF\
PDJQHWLFILHOG PDJQHWLFILHOGVRUWRLQVWDOO
 PDJQHWLFVKLHOGLQJ7KHSRZHU
,(& IUHTXHQF\PDJQHWLFILHOG
VKRXOGEHPHDVXUHGLQWKH
LQWHQGHGLQVWDOODWLRQORFDWLRQWR
DVVXUHWKDWLWLVVXIILFLHQWO\ORZ
1RWH87LVWKH$&PDLQVYROWDJHSULRUWRDSSOLFDWLRQRIWKHWHVWOHYHO

7DEOH(OHFWURPDJQHWLF,PPXQLW\ ,(& 

,PPXQLW\7HVW ,(&  &RPSOLDQFH (OHFWURPDJQHWLFHQYLURQPHQW


WHVWOHYHO OHYHO JXLGDQFH
7KH 0 LV LQWHQGHG IRU XVH LQ WKH HOHFWURPDJQHWLF HQYLURQPHQW VSHFLILHG EHORZ 7KH
FXVWRPHURUWKHXVHURIWKH0VKRXOGDVVXUHWKDWLWLVXVHGLQVXFKDQHQYLURQPHQW
   3RUWDEOHDQGPRELOH5)
   FRPPXQLFDWLRQVHTXLSPHQWVKRXOG
   EHXVHGQRFORVHUWRDQ\SDUWRIWKH
   0LQFOXGLQJFDEOHVWKDQWKH
   UHFRPPHQGHGVHSDUDWLRQGLVWDQFH
   FDOFXODWHGIURPWKHHTXDWLRQ
   DSSURSULDWHWRWKHIUHTXHQF\RIWKH
   WUDQVPLWWHU
   
   5HFRPPHQGVHSDUDWLRQGLVWDQFH
   
&RQGXFWHG5) 9UPV 9UPV G  S  
,(& N+]WR0+]  
   
5DGLDWHG5) 9P 9P G  S   0+]WR0+]
,(& 0+]WR0+]  
   
9P 9P G  S   0+]WR*+]
0+]WR 
*+] ZKHUH3LVWKHPD[LPXPRXWSXW
SRZHUUDWLQJRIWKHWUDQVPLWWHULQ
ZDWWV : DFFRUGLQJWRKHWUDQVPLWWHU
PDQXIDFWXUHUDQGGLVWKH
UHFRPPHQGHGVHSDUDWLRQGLVWDQFHLQ
PHWUHV P 

)LHOGVWUHQJWKVIURPIL[HG5)
WUDQVPLWWHUVDVGHWHUPLQHGE\DQ
D
HOHFWURPDJQHWLFVLWHVXUYH\ VKRXOG
EHOHVVWKDQWKHFRPSOLDQFHOHYHOLQ
E
HDFKIUHTXHQF\UDQJH 

,QWHUIHUHQFHPD\RFFXULQWKHYLFLQLW\
RIHTXLSPHQWPDUNHGZLWKKH
IROORZLQJV\PERO



1RWH$W0+]DQG0+]WKHKLJKHUIUHTXHQF\UDQJHDSSOLHV
1RWH7KHVHJXLGHOLQHVPD\QRWDSSO\LQDOOVLWXDWLRQV(OHFWURPDJQHWLFSURSDJDWLRQLV
DIIHFWHGE\DEVRUSWLRQDQGUHIOHFWLRQIURPVWUXFWXUHVREMHFWVDQGSHRSOH


,PPXQLW\7HVW ,(&  &RPSOLDQFH (OHFWURPDJQHWLFHQYLURQPHQW
WHVWOHYHO OHYHO JXLGDQFH
D  
)LHOGVWUHQJWKVIURPIL[HGWUDQVPLWWHUVVXFKDVEDVHVWDWLRQVIRUUDGLR FHOOXODUFRUGOHVV 
WHOHSKRQHVDQGODQGPRELOHUDGLR$0DQG)0UDGLREURDGFDVWDQG79EURDGFDVWFDQQRWEH
SUHGLFWHGWKHRUHWLFDOO\ZLWKDFFXUDF\7RDVVHVVWKHHOHFWURPDJQHWLFHQYLURQPHQWGXHWRIL[HG
5)WUDQVPLWWHUVDQHOHFWURPDJQHWLFVLWHVXUYH\VKRXOGEHFRQVLGHUHG,IWKHPHDVXUHGILHOG
VWUHQJWKLQWKHORFDWLRQLQZKLFKWKH0LVXVHGH[FHHGVWKHDSSOLFDEOH5)FRPSOLDQFHOHYHO
DERYH WKH 0 VKRXOG EH REVHUYHG WR YHULI\ QRUPDO RSHUDWLRQ ,I DEQRUPDO SHUIRUPDQFH LV
REVHUYHGDGGLWLRQDOPHDVXUHVPD\EHQHFHVVDU\VXFKDVUHRULHQWLQJRUUHORFDWLQJWKH0

E
 2YHUWKHIUHTXHQF\UDQJHN+]WR0+]ILHOGVWUHQJWKVVKRXOGEHOHVVWKDQ9P

7DEOH5HFRPPHQGHG6HSDUDWLRQ'LVWDQFHV

5HFRPPHQGHGVHSDUDWLRQGLVWDQFHEHWZHHQ
SRUWDEOHDQGPRELOH5)FRPPXQLFDWLRQVHTXLSPHQWDQGWKH0
7KH 0 LV LQWHQGHG IRU XVH LQ DQ HOHFWURPDJQHWLF HQYLURQPHQW LQ ZKLFK UDGLDWHG 5)
GLVWXUEDQFHV DUH FRQWUROOHG 7KH FXVWRPHU RU WKH XVHU RI WKH 0 FDQ KHOS SUHYHQW
HOHFWURPDJQHWLF LQWHUIHUHQFH E\ PDLQWDLQLQJ D PLQLPXP GLVWDQFH EHWZHHQ SRUWDEOH DQG
PRELOH 5) FRPPXQLFDWLRQV HTXLSPHQW WUDQVPLWWHUV  DQG WKH 0 DV UHFRPPHQGHG EHORZ
DFFRUGLQJWRWKHPD[LPXPRXWSXWSRZHURIWKHFRPPXQLFDWLRQVHTXLSPHQW
5DWHG0D[LPXP 6HSDUDWLRQGLVWDQFHDFFRUGLQJWRIUHTXHQF\RIWUDQVPLWWHULQ
2XWSXW3RZHURI PHWHU
7UDQVPLWWHULQ N+]WR0+] 0+]WR0+] 0+]WR*+]
ZDWW G  S  G  S  G  S 
   
   
   
   
   
)RU WUDQVPLWWHUV UDWHG DW D PD[LPXP RXWSXW SRZHU QRW OLVWHG DERYH WKH
UHFRPPHQGHG VHSDUDWLRQ GLVWDQFH G LQ PHWHUV P  FDQ EH HVWLPDWHG XVLQJ WKH
HTXDWLRQDSSOLFDEOHWR WKH IUHTXHQF\ RI WKHWUDQVPLWWHU ZKHUH 3 LVWKHPD[LPXP
RXWSXW SRZHU UDWLQJ RI WKH WUDQVPLWWHU LQ ZDWWV :  DFFRUGLQJ WR WKH WUDQVPLWWHU
PDQXIDFWXUHU
1RWH $W 0+] DQG 0+] WKH VHSDUDWLRQ GLVWDQFH IRU WKH KLJKHU IUHTXHQF\
UDQJHDSSOLHV
1RWH 7KHVH JXLGHOLQHV PD\ QRW DSSO\ LQ DOO VLWXDWLRQV (OHFWURPDJQHWLF
SURSDJDWLRQ LV DIIHFWHG E\ DEVRUSWLRQDQG UHIOHFWLRQ IURPVWUXFWXUHVREMHFWV DQG
SHRSOH

              7DEOH&DEOHV ,(& 

0D[LPXP
&DEOHVDQG6HQVRUV &RPSOLHVZLWK
/HQJWK
3RZHU&DEOH P
1,%3+RVH P 5)HPLVVLRQV&,635&ODVV%*URXS
7UXQN&DEOH P +DUPRQLFHPLVVLRQV,(&
(&*/HDG&DEOH P 9ROWDJHIOXFWXDWLRQVIOLFNHUHPLVVLRQ 
6S2&DEOH P ,(&
)LQJHU3UREH&DEOH P (OHFWURVWDWLFGLVFKDUJH (6' ,(&
/$1&DEOH P (OHFWULFIDVWWUDQVLHQWEXUVW,(&
7HPSHUDWXUH&DEOH P 6XUJH,(&
&XII+RVH P &RQGXFWHG5),(&
1XUVH&DOO&DEOH P 5DGLDWHG5),(&
,7(3RZHU6XSSO\'&&DEOH P




You might also like