You are on page 1of 178

&RQWHQWV ,QWURGXFWLRQ  

,QEULHI  
.H\VGRRUVDQGZLQGRZV  
6HDWVUHVWUDLQWV  
6WRUDJH  
,QVWUXPHQWVDQGFRQWUROV  
/LJKWLQJ  
,QIRWDLQPHQWV\VWHP  
&OLPDWHFRQWURO  
'ULYLQJDQGRSHUDWLQJ  
9HKLFOHFDUH  
6HUYLFHDQGPDLQWHQDQFH  
7HFKQLFDOGDWD  
&XVWRPHULQIRUPDWLRQ  
,QGH[  
 ,QWURGXFWLRQ

,QWURGXFWLRQ
,QWURGXFWLRQ 

,QWURGXFWLRQ 7KHFXVWRPHUOLWHUDWXUHSDFNVKRXOG ࿢ 'LUHFWLRQDOGDWDHJOHIWRUULJKWRU


DOZD\VEHNHSWUHDG\WRKDQGLQWKH IURQWRUEDFNDOZD\VUHODWHWRWKH
<RXUYHKLFOHLVDGHVLJQHG YHKLFOH GLUHFWLRQRIWUDYHO
FRPELQDWLRQRIDGYDQFHGWHFKQRORJ\
VDIHW\HQYLURQPHQWDOIULHQGOLQHVV ࿢ 7KHYHKLFOHGLVSOD\VFUHHQVPD\
DQGHFRQRP\
8VLQJWKLVPDQXDO QRWVXSSRUW\RXUVSHFLILFODQJXDJH
࿢ 7KLVPDQXDOGHVFULEHVDOORSWLRQV
7KLV2ZQHUಫV0DQXDOSURYLGHV\RX
ZLWKDOOWKHQHFHVVDU\LQIRUPDWLRQWR
DQGIHDWXUHVDYDLODEOHIRUWKLV 'DQJHU:DUQLQJVDQG
PRGHO& &HUWDLQGHVFULSWLRQV &DXWLRQV
HQDEOH\RXWRGULYH\RXUYHKLFOH
LQFOXGLQJWKRVHIRUGLVSOD\DQG
VDIHO\DQGHIILFLHQWO\
PHQXIXQFWLRQVPD\QRWDSSO\WR
0DNHVXUH\RXUSDVVHQJHUVDUH  'DQJHU
\RXUYHKLFOHGXHWRPRGHOYDULDQW
DZDUHRIWKHSRVVLEOHULVNRIDFFLGHQW FRXQWU\VSHFLILFDWLRQVVSHFLDO
DQGLQMXU\ZKLFKPD\UHVXOWIURP 7H[WPDUNHG' 'DQJHUSURYLGHV
HTXLSPHQWRUDFFHVVRULHV
LPSURSHUXVHRIWKHYHKLFOH LQIRUPDWLRQRQULVNRIIDWDOLQMXU\
࿢ 7KH,QEULHIVHFWLRQZLOOJLYH\RX 'LVUHJDUGLQJWKLVLQIRUPDWLRQPD\
<RXPXVWDOZD\VFRPSO\ZLWKWKH DQLQLWLDORYHUYLHZ HQGDQJHUOLIH
VSHFLILFODZVDQGUHJXODWLRQVRIWKH
࿢ 7KHWDEOHRIFRQWHQWVDWWKH
FRXQWU\WKDW\RXDUHLQ7KHVHODZV
EHJLQQLQJRIWKLVPDQXDODQGZLWKLQ
PD\GLIIHUIURPWKHLQIRUPDWLRQLQWKLV  :DUQLQJ
HDFKVHFWLRQVKRZVZKHUHWKH
2ZQHUಫV0DQXDO
LQIRUPDWLRQLVORFDWHG
:KHQWKLV2ZQHUಫV0DQXDOUHIHUVWR 7H[WPDUNHG: :DUQLQJSURYLGHV
࿢ 7KHLQGH[ZLOOHQDEOH\RXWRVHDUFK LQIRUPDWLRQRQULVNRIDFFLGHQWRU
DZRUNVKRSYLVLWZHUHFRPPHQG\RXU
IRUVSHFLILFLQIRUPDWLRQ LQMXU\'LVUHJDUGLQJWKLV
&KHYUROHW6HUYLFH3DUWQHU
࿢ 7KH2ZQHU
V0DQXDOXVHVWKH LQIRUPDWLRQPD\OHDGWRLQMXU\
$OO&KHYUROHW6HUYLFH3DUWQHUV
IDFWRU\HQJLQHGHVLJQDWLRQV7KH
SURYLGHILUVWFODVVVHUYLFHDW
FRUUHVSRQGLQJVDOHVGHVLJQDWLRQV
UHDVRQDEOHSULFHV([SHULHQFHG
FDQEHIRXQGLQWKHVHFWLRQ
PHFKDQLFVWUDLQHGE\&KHYUROHWZRUN
7HFKQLFDOGDWD
DFFRUGLQJWRVSHFLILF&KHYUROHW
LQVWUXFWLRQV
 ,QWURGXFWLRQ

&DXWLRQ
7H[WPDUNHG& &DXWLRQSURYLGHV
LQIRUPDWLRQRQSRVVLEOHGDPDJHWR
WKHYHKLFOH'LVUHJDUGLQJWKLV
LQIRUPDWLRQPD\OHDGWRYHKLFOH
GDPDJH

:HZLVK\RXPDQ\KRXUVRI
SOHDVXUDEOHGULYLQJ
&KHYUROHW
,QWURGXFWLRQ 
 ,QEULHI

,QEULHI 9HKLFOHXQORFNLQJ 6HDWDGMXVWPHQW


5DGLRUHPRWHFRQWURO 6HDWSRVLWLRQLQJ
,QLWLDOGULYHLQIRUPDWLRQ

3UHVVEXWWRQA 3XOOKDQGOHVOLGHVHDWUHOHDVH
8QORFNVDOOGRRUV7KHKD]DUG KDQGOH
ZDUQLQJIODVKHUVZLOOIODVKWZLFH 6HDWSRVLWLRQ 6HDWDGMXVWPHQW
5DGLRUHPRWHFRQWURO &HQWUDO 
ORFNLQJV\VWHP 
,QEULHI 

6HDWEDFNUHVWV 6HDWKHLJKW +HDGUHVWUDLQWDGMXVWPHQW

3XOOOHYHUDGMXVWLQFOLQDWLRQDQG 7XUQWKHKDQGZKHHORQWKHRXWVLGHRI 3XOOWKHKHDGUHVWUDLQWXSZDUGV


UHOHDVHOHYHU$OORZWKHVHDWWR WKHVHDWFXVKLRQXQWLOWKHVHDW
7RPRYHGRZQSUHVVWKHFDWFKDQG
HQJDJHDXGLEO\ FXVKLRQLVDGMXVWHGWRWKHGHVLUHG
SXVKWKHKHDGUHVWUDLQWGRZQZDUGV
6HDWSRVLWLRQ 6HDWDGMXVWPHQW SRVLWLRQ
+HDGUHVWUDLQWV 
 6HDWSRVLWLRQ 6HDWDGMXVWPHQW

 ,QEULHI

6HDWEHOW 0LUURUDGMXVWPHQW ([WHULRUPLUURUV

,QWHULRUPLUURU

:LWKGUDZEHOWIURPUHHOJXLGHLW 6LPSO\PRYHWKHDGMXVWLQJOHYHULQWKH
XQWZLVWHGDFURVVWKHERG\DQG GHVLUHGGLUHFWLRQWRDGMXVWWKHPLUURU
HQJDJHWKHODWFKSODWHLQWKHEXFNOH 7RUHGXFHGD]]OHSXOOWKHOHYHURQWKH DQJOHV
7HQVLRQWKHODSEHOWUHJXODUO\ZKLOVW XQGHUVLGHRIWKHPLUURUKRXVLQJ &RQYH[H[WHULRUPLUURUV 
GULYLQJE\WXJJLQJWKHVKRXOGHUEHOW ,QWHULRUPLUURU  (OHFWULFDGMXVWPHQW )ROGLQJ
H[WHULRUPLUURUV +HDWHG
6HDWSRVLWLRQ 6HDWEHOWV
H[WHULRUPLUURUV 
$LUEDJV\VWHP 
,QEULHI 

6WHHULQJZKHHODGMXVWPHQW

8QORFNOHYHUDGMXVWVWHHULQJZKHHO
WKHQHQJDJHOHYHUDQGHQVXUHLWLV
IXOO\ORFNHG'RQRWDGMXVWVWHHULQJ
ZKHHOXQOHVVYHKLFOHLVVWDWLRQDU\
$LUEDJV\VWHP ,JQLWLRQ
SRVLWLRQV 
 ,QEULHI

,QVWUXPHQWSDQHORYHUYLHZ
,QEULHI 

 (OHFWULFPLUURUDGMXVWPHQW   ([WHULRUOLJKWLQJ +HDGOLJKWIODVKKLJKEHDPDQG


 6LGHDLUYHQWV   ORZEHDP
 ([WHULRUOLJKWLQJ  
 +RUQ  
'ULYHUDLUEDJ  
 ,QVWUXPHQWFOXVWHU  
 :LSHUDQGZDVKHUV\VWHP  
 &HQWUHDLUYHQWV  
 ,QIRWDLQPHQWV\VWHP  
 &RQWUROLQGLFDWRUV  
 +D]DUGZDUQLQJIODVKHUV  
 )URQWSDVVHQJHUDLUEDJ  
7XUQOLJKWVZLWFK
 *ORYHER[   7RVZLWFKIURPORZWRKLJKEHDP
2)) $OOWKHOLJKWVDUHRII
 &OLPDWHFRQWUROV\VWHP    7KHWDLOOLJKWVQXPEHUSODWH SXVKOHYHU
 6HOHFWRUOHYHUPDQXDO OLJKWVDQGLQVWUXPHQWSDQHO 7RVZLWFKWRORZEHDPSXVKOHYHU
WUDQVPLVVLRQ   OLJKWVDUHLOOXPLQDWHG DJDLQRUSXOO
 $FFHOHUDWRUSHGDO    7KHORZEHDPKHDGOLJKWV +LJKEHDP +HDGOLJKWIODVK
DQGDOORIWKHDERYHOLJKWV 
 %UDNHSHGDO   DUHLOOXPLQDWHG
 ,JQLWLRQVZLWFK  
/LJKWLQJ 
 &OXWFKSHGDO  
 6WHHULQJZKHHODGMXVWPHQW   
 %RQQHWUHOHDVHOHYHU  
 +HDGOLJKWUDQJHDGMXVWPHQW   
 ,QEULHI

+D]DUGZDUQLQJIODVKHUV 7XUQDQGODQHFKDQJHVLJQDOV +RUQ

2SHUDWHGZLWKWKHeEXWWRQ OHYHUXS ULJKW 3UHVVH


+D]DUGZDUQLQJIODVKHUV  OHYHUGRZQ OHIW
7XUQDQGODQHFKDQJHVLJQDOV

,QEULHI 

:DVKHUDQGZLSHUV\VWHPV :LQGVFUHHQZDVKHUV\VWHP &OLPDWHFRQWURO


:LQGVFUHHQZLSHU +HDWHGUHDUZLQGRZKHDWHG
H[WHULRUPLUURUV

3XOOOHYHU
:LQGVFUHHQZDVKHU :DVKHU
2)) 6\VWHPRII IOXLG 
,17 ,QWHUPLWWHQWRSHUDWLRQ +HDWLQJLVRSHUDWHGE\SUHVVLQJWKH
/2 &RQWLQXRXVZLSHVORZ ^EXWWRQ
VSHHG
+HDWHGPLUURUV +HDWHGUHDU
+, &RQWLQXRXVZLSHIDVW
ZLQGRZ 
VSHHG
)RUDVLQJOHZLSHZKHQWKH
ZLQGVFUHHQZLSHULVRIIOLJKWO\PRYH
WKHOHYHUWRZDUGWKH,,17SRVLWLRQDQG
UHOHDVHLW
:LQGVFUHHQZLSHU 
 ,QEULHI

'HPLVWLQJDQGGHIURVWLQJWKH 7UDQVPLVVLRQ $XWRPDWLFWUDQVPLVVLRQ


ZLQGRZV
0DQXDOWUDQVPLVVLRQ

3 3$5. /RFNVWKHIURQWZKHHOV
3UHVVEXWWRQ5 6HOHFW3RQO\ZKHQWKHYHKLFOHLV
5HYHUVHZLWKWKHYHKLFOHVWDWLRQDU\ VWDWLRQDU\DQGWKHSDUNLQJEUDNHLV
'HIURVWLQJWKHZLQGVFUHHQ 
GHSUHVVWKHFOXWFKSHGDODQGHQJDJH DSSOLHG
'HPLVWLQJWKHZLQGVFUHHQ 
'HPLVWLQJDQGGHIURVWLQJWKH WKHJHDU 5 5(9(56( 6HOHFW5RQO\ZKHQ
ZLQGRZV  ,IWKHJHDUGRHVQRWHQJDJHVHWWKH WKHYHKLFOHLVVWDWLRQDU\
OHYHULQQHXWUDOUHOHDVHWKHFOXWFK 1 1(875$/ 1HXWUDOJHDUSRVLWLRQ
SHGDODQGGHSUHVVDJDLQWKHQUHSHDW '7KLVGULYHSRVLWLRQLVIRUDOOQRUPDO
JHDUVHOHFWLRQ GULYLQJFRQGLWLRQV,WDOORZVWKH
0DQXDOWUDQVPLVVLRQ  WUDQVPLVVLRQWRVKLIWLQWRDOOIRXU
IRUZDUGJHDUV)RXUWKJHDULV
RYHUGULYHZKLFKUHGXFHVHQJLQH
VSHHGDQGQRLVHOHYHOZKLOH
LQFUHDVLQJIXHOHFRQRP\
,QEULHI 

$OORZVWKHWUDQVPLVVLRQWRVKLIW 6WDUWLQJRII 6WDUWLQJWKHHQJLQH


IURPVWWRQGJHDUDQGSUHYHQWV
DXWRPDWLFVKLIWLQJLQWRUGRU &KHFNEHIRUHVWDUWLQJRII
WKJHDU ࿢ 7\UHSUHVVXUHDQGFRQGLWLRQ
7KLVSRVLWLRQORFNVWKHWUDQVPLVVLRQ ࿢ (QJLQHRLOOHYHODQGIOXLGOHYHOV
LQILUVWJHDU
࿢ $OOZLQGRZVPLUURUVH[WHULRU
$XWRPDWLFWUDQVPLVVLRQ  OLJKWLQJDQGQXPEHUSODWHVDUHIUHH
IURPGLUWVQRZDQGLFHDQGDUH
RSHUDWLRQDO
࿢ 3URSHUSRVLWLRQRIPLUURUVVHDWV
DQGVHDWEHOWV
࿢ &KHFNEUDNHIXQFWLRQDWORZVSHHG
SDUWLFXODUO\LIWKHEUDNHVDUHZHW
࿢ 7XUQWKHNH\WRSRVLWLRQPRYHWKH
VWHHULQJZKHHOVOLJKWO\WRUHOHDVH
WKHVWHHULQJZKHHOORFN
࿢ 0DQXDOWUDQVPLVVLRQRSHUDWH
FOXWFK
࿢ $XWRPDWLFWUDQVPLVVLRQ0RYH
VHOHFWRUOHYHUWR3RU1
࿢ 'RQRWDFFHOHUDWH
࿢ 7XUQWKHNH\WRSRVLWLRQ
GHSUHVVLQJWKHFOXWFKSHGDODQG
IRRWEUDNHWKHQUHOHDVHZKHQ
HQJLQHLVUXQQLQJ
 ,QEULHI

%HIRUHUHVWDUWLQJRUWRVZLWFKRIIWKH 3DUNLQJ
HQJLQHWXUQNH\EDFNWR
࿢ 'RQRWSDUNWKHYHKLFOHRQDQHDVLO\
LJQLWDEOHVXUIDFH7KHKLJK
WHPSHUDWXUHRIWKHH[KDXVWV\VWHP
FRXOGLJQLWHWKHVXUIDFH
࿢ $OZD\VDSSO\SDUNLQJEUDNHZLWKRXW
SUHVVLQJUHOHDVHEXWWRQ$SSO\DV
ILUPO\DVSRVVLEOHRQGRZQKLOORU
XSKLOOVORSHV'HSUHVVWKH
IRRWEUDNHDWWKHVDPHWLPHWR
UHGXFHRSHUDWLQJIRUFH
࿢ 6ZLWFKRIIWKHHQJLQHDQGLJQLWLRQ
7XUQWKHVWHHULQJZKHHOXQWLOWKH
VWHHULQJZKHHOORFNHQJDJHV
࿢ ,IWKHYHKLFOHLVRQDOHYHOVXUIDFHRU
XSKLOOVORSHHQJDJHILUVWJHDU
EHIRUHVZLWFKLQJRIIWKHLJQLWLRQ2Q
DQXSKLOOVORSHWXUQWKHIURQW
ZKHHOVDZD\IURPWKHNHUE,IWKH
YHKLFOHLVRQDGRZQKLOOVORSH
HQJDJHUHYHUVHJHDUEHIRUH
VZLWFKLQJRIIWKHLJQLWLRQ7XUQWKH
IURQWZKHHOVWRZDUGVWKHNHUE
࿢ &ORVHZLQGRZV
࿢ /RFNWKHYHKLFOHDQGDFWLYDWHWKH
DQWLWKHIWDODUPV\VWHP
.H\V 
.H\VGRRUVDQGZLQGRZV 

.H\VORFNV 8VHGWRRSHUDWHWKHFHQWUDOORFNLQJ
.H\VGRRUVDQG V\VWHP
ZLQGRZV .H\V 7KHUDGLRUHPRWHFRQWUROKDVDQ
DSSUR[LPDWHUDQJHRIXSWR
5HSODFHPHQWNH\V PHWUHV,WFDQEHUHVWULFWHGE\
.H\VORFNV   7KHNH\QXPEHULVVSHFLILHGRQ RXWVLGHLQIOXHQFHV
'RRUV   DGHWDFKDEOHWDJ 7KHKD]DUGZDUQLQJIODVKHUVFRQILUP
7KHNH\QXPEHUPXVWEHTXRWHG RSHUDWLRQ
9HKLFOHVHFXULW\  
ZKHQRUGHULQJUHSODFHPHQWNH\VDVLW +DQGOHZLWKFDUHSURWHFWIURP
([WHULRUPLUURUV   LVDFRPSRQHQWRIWKHLPPRELOLVHU PRLVWXUHDQGKLJKWHPSHUDWXUHVDQG
,QWHULRUPLUURUV   V\VWHP DYRLGXQQHFHVVDU\RSHUDWLRQ
:LQGRZV   /RFNV 
)DXOW
,IWKHFHQWUDOORFNLQJV\VWHPFDQQRW
5DGLRUHPRWHFRQWURO EHRSHUDWHGZLWKWKHUDGLRUHPRWH
FRQWUROLWPD\EHGXHWRWKHIROORZLQJ
࿢ 5DQJHH[FHHGHG
࿢ %DWWHU\YROWDJHWRRORZ
࿢ )UHTXHQWUHSHDWHGRSHUDWLRQRIWKH
UDGLRUHPRWHFRQWUROZKLOHQRWLQ
UDQJHZKLFKZLOOUHTXLUHUH
V\QFKURQLVDWLRQ
࿢ 2YHUORDGRIWKHFHQWUDOORFNLQJ
V\VWHPE\RSHUDWLQJDWIUHTXHQW
LQWHUYDOVWKHSRZHUVXSSO\LV
LQWHUUXSWHGIRUDVKRUWWLPH
 .H\VGRRUVDQGZLQGRZV

࿢ ,QWHUIHUHQFHIURPKLJKHUSRZHU  ,QVWDOOWKHQHZEDWWHU\%HVXUH
UDGLRZDYHVIURPRWKHUVRXUFHV WKHQHJDWLYHVLGH  IDFHVGRZQ
WRZDUGWKHEDVH
5DGLRUHPRWHFRQWUROEDWWHU\  $WWDFKWKHVWLFNHUDQGSXWWKH
UHSODFHPHQW WUDQVPLWWHUXQLWLQWKHFRYHU
5HSODFHWKHEDWWHU\DVVRRQDVWKH  $VVHPEOHWKHWUDQVPLWWHUFRYHU
UDQJHLVQRWLFHDEO\GLPLQLVKHG
 &KHFNWKHRSHUDWLRQRIWKH
WUDQVPLWWHUZLWK\RXUYHKLFOH

&DXWLRQ
$YRLGWRXFKLQJWKHIODWVXUIDFHVRI
1RWH WKHEDWWHU\ZLWK\RXUEDUHILQJHUV
8VH&5 RUHTXLYDOHQW DVLWZLOOVKRUWHQEDWWHU\OLIH
%DWWHULHVGRQRWEHORQJLQKRXVHKROG UHSODFHPHQWEDWWHU\
ZDVWH7KH\PXVWEHGLVSRVHGRIDW
DQDSSURSULDWHUHF\FOLQJFROOHFWLRQ  5HPRYHWKHVFUHZIURPWKHEDFN 1RWH
SRLQW RIWKHFRYHU 8VHGOLWKLXPEDWWHULHVFDQKDUPWKH
 2SHQWKHWUDQVPLWWHUFRYHU HQYLURQPHQW
 3XOOWKHWUDQVPLWWHUXQLWRXWRIWKH )ROORZORFDOUHF\FOLQJODZVIRU
FRYHUDQGFDUHIXOO\GHWDFKWKH GLVSRVDO
VWLFNHUIURPWKHXQLWDQGNHHSWKH 'RQRWGLVFDUGZLWKKRXVHKROG
VWLFNHULQDFOHDQSODFH UHIXVH
 5HPRYHWKHXVHGEDWWHU\$YRLG
FRQWDFWEHWZHHQWKHFLUFXLWERDUG
DQGRWKHUFRPSRQHQWV
.H\VGRRUVDQGZLQGRZV 

1RWH 8QORFNLQJ /RFNLQJ


,QRUGHUWRNHHSWKHWUDQVPLWWHU
ZRUNLQJSURSHUO\IROORZWKHVH 5DGLRUHPRWHFRQWURO 5DGLRUHPRWHFRQWURO
JXLGHOLQHV
$YRLGGURSSLQJWKHWUDQVPLWWHU
'RQRWSODFHKHDY\REMHFWVRQWKH
WUDQVPLWWHU
.HHSWKHWUDQVPLWWHUDZD\IURP
ZDWHUDQGGLUHFWVXQOLJKW,IWKH
WUDQVPLWWHUJHWVZHWZLSHLWZLWK
DVRIWFORWK
&HQWUDOORFNLQJV\VWHP
<RXFDQDFWLYDWHWKHFHQWUDOGRRU
ORFNLQJV\VWHPIURPWKHGULYHU
VGRRU
7KLVV\VWHPDOORZV\RXWRORFNDQG 3UHVVEXWWRQA 3UHVVEXWWRQC
XQORFNDOOWKHGRRUVIURPWKHGULYHU
V 8QORFNVDOOGRRUV7KHKD]DUG /RFNVDOOGRRUV+D]DUGZDUQLQJ
GRRUXVLQJHLWKHUWKHNH\RUNH\OHVV ZDUQLQJIODVKHUVZLOOIODVKWZLFH IODVKHUVZLOOIODVKRQFH
UHPRWH IURPRXWVLGH RUWKHGRRUORFN
EXWWRQ IURPLQVLGH 
,IWKHGULYHU
VGRRULVQRWFORVHG
SURSHUO\WKHFHQWUDOORFNLQJV\VWHP
ZLOOQRWZRUN
 .H\VGRRUVDQGZLQGRZV

)DXOWLQUDGLRUHPRWHFRQWURO )DXOWLQFHQWUDOORFNLQJV\VWHP &DXWLRQ


V\VWHP
8QORFNLQJ
0DQXDOO\XQORFNWKHGULYHU
VGRRUE\ 'RQRWSXOOWKHLQVLGHGRRUKDQGOH
8QORFNLQJ
WXUQLQJWKHNH\LQWKHORFN7KHRWKHU ZKLOHWKHFKLOGVHFXULW\GRRUORFNLV
GRRUVFDQEHRSHQHGE\XVLQJWKH VHWWR/2&.SRVLWLRQ7RGRVRFDQ
LQWHULRUKDQGOH GDPDJHWKHLQVLGHGRRUKDQGOH

/RFNLQJ
 :DUQLQJ
3XVKLQVLGHORFNLQJNQRERIDOOGRRUV
H[FHSWGULYHU
VGRRU7KHQFORVHWKH 8VHWKHFKLOGORFNVZKHQHYHU
GULYHU
VGRRUDQGORFNLWIURPWKH FKLOGUHQDUHRFFXS\LQJWKHUHDU
RXWVLGHZLWKWKHNH\ VHDWV

&KLOGORFNV 7RFORVHWKHFKLOGVHFXULW\GRRUORFN
PRYHWKHOHYHUXSWRWKHORFNSRVLWLRQ
7RRSHQDUHDUGRRUZKHQWKHFKLOG
0DQXDOO\XQORFNWKHGULYHU
VGRRUE\ VHFXULW\GRRUORFNLVDFWLYDWHGXQORFN
WXUQLQJWKHNH\LQWKHORFN WKHGRRUIURPWKHLQVLGHDQGRSHQWKH
GRRUIURPWKHRXWVLGH
/RFNLQJ
&ORVHWKHGULYHU
VGRRUDQGORFNLWIURP 7RFDQFHOWKHFKLOGVHFXULW\GRRUORFN
WKHRXWVLGHZLWKWKHNH\ PRYHWKHOHYHUGRZQWRWKHXQORFN
SRVLWLRQ
.H\VGRRUVDQGZLQGRZV 

'RRUV 7\SH

/RDGFRPSDUWPHQW
7DLOJDWHRSHQLQJ
7\SH

:KHQWKHWDLOJDWHLVXQORFNHGSXOOWKH
ORQJKDQGOHWRRSHQLW
<RXFDQDOVRRSHQWKHWDLOJDWHE\
SXOOLQJXSWKHWDLOJDWHUHOHDVHOHYHU
ORFDWHGQHDUWKHGULYHU
VVHDW
7\SH
7KHWDLOJDWHLVORFNHGRUXQORFNHG
7RRSHQWKHWDLOJDWHLQVHUWWKHNH\ ZKHQDOOGRRUVDUHORFNHGRUXQORFNHG
LQWRWKHNH\VORWDQGWXUQLWFORFNZLVH ZLWKWKHNH\RUNH\OHVVUHPRWH
/LIWWKHWDLOJDWH
 .H\VGRRUVDQGZLQGRZV

7RRSHQWKHWDLOJDWHLQVHUWWKHNH\ 7DLOJDWHFORVLQJ 9HKLFOHVHFXULW\


LQWRWKHNH\VORWDQGWXUQLW
FRXQWHUFORFNZLVHDQGWKHQSXOOWKH 7\SH
ORQJKDQGOH 7RFORVHWDLOJDWHSXVKLWGRZQVRLW
,PPRELOLVHU
ODWFKHVVHFXUHO\,WORFNV
,PPRELOLVHULQGLFDWRU
 :DUQLQJ DXWRPDWLFDOO\

'RQRWGULYHZLWKWKHWDLOJDWHRSHQ 7\SH
RUDMDUHJZKHQWUDQVSRUWLQJ 7RFORVHWDLOJDWHSXVKLWGRZQVRLW
EXON\REMHFWVVLQFHWR[LFH[KDXVW ODWFKHVVHFXUHO\$QGLQVHUWWKHNH\
JDVHVFRXOGHQWHUWKHYHKLFOH LQWRWKHNH\VORWDQGWXUQLWFORFNZLVH
0DNHVXUH\RXUKDQGVDQGDQ\RWKHU
ERG\SDUWVDVZHOODVWKRVHRIRWKHU
&DXWLRQ SHUVRQVDUHFRPSOHWHO\DZD\IURP
WKHWDLOJDWHFORVXUHDUHD
%HIRUHRSHQLQJWKHWDLOJDWHFKHFN
RYHUKHDGREVWUXFWLRQVVXFKDV
DJDUDJHGRRUWRDYRLGGDPDJHRI
WKHWDLOJDWH$OZD\VFKHFNWKH
PRYLQJDUHDDERYHDQGEHKLQGWKH ,IDQLQYDOLGNH\LVXVHGWKHLQGLFDWRU
WDLOJDWH ZLOOEHIODVKHGDQGWKHYHKLFOHFDQ
WEH
VWDUWHG
1RWH
7KHLQVWDOODWLRQRIFHUWDLQKHDY\
DFFHVVRULHVRQWRWKHWDLOJDWHPD\
DIIHFWLWVDELOLW\WRUHPDLQRSHQ
.H\VGRRUVDQGZLQGRZV 

$XWRGRRUORFN 7KHLPPRELOLVHULQGLFDWRUFDQEH ([WHULRUPLUURUV


,IWKHGRRULVQRWRSHQHGRUWKH RSHUDWHGLQWKHIROORZLQJFRQGLWLRQV
SRVLWLRQRIWKHLJQLWLRQNH\LVQRW ࿢ ,IWKHLPPRELOLVHUV\VWHPKDVDIDXOW &RQYH[VKDSH
ORFDWHGLQ$&&RU21ZLWKLQ LQFOXGLQJWKH$XWR.H\/HDUQLQJ
VHFRQGVDIWHUXQORFNLQJWKHGRRUV 0RGH ZKHQWKHLJQLWLRQVZLWFKLVLQ 7KHFRQYH[H[WHULRUPLUURUUHGXFHV
XVLQJWKHWUDQVPLWWHUDOOGRRUVDUH 21RU67$57SRVLWLRQWKH EOLQGVSRWV7KHVKDSHRIWKHPLUURU
DXWRPDWLFDOO\ORFNHG LPPRELOLVHULQGLFDWRUIODVKHVRU PDNHVREMHFWVDSSHDUVPDOOHUZKLFK
LOOXPLQDWHVFRQWLQXRXVO\ ZLOODIIHFWWKHDELOW\WRHVWLPDWH
,PPRELOLVHU GLVWDQFHV
࿢ ,QVRPH(XURSHDQFRXQWULHVDQ
7KHLPPRELOLVHUV\VWHPSURYLGHVDQ DX[LOLDU\LPPRELOLVHULVDSSOLFDWHG
DGGLWLRQDOWKHIWGHWHUUHQWWRWKH RSWLRQDOO\WRLPSURYHWKHYHKLFOH 0DQXDODGMXVWPHQW
YHKLFOHLQZKLFKLWLVLQVWDOOHGDQG VHFXULW\OHYHO,IWKHPRGXOHLV
SUHYHQWVLWIURPEHLQJVWDUWHGE\ UHSODFHGZLWKDQHZRQHWKH
XQDXWKRULVHGSHUVRQV7KHYDOLGNH\ YHKLFOHFDQQRWEHVWDUWHG,IWKH
IRUDYHKLFOHHTXLSSHGZLWK YHKLFOHFDQQRWEHVWDUWHGRUWKH
LPPRELOLVHUV\VWHPLVDQLJQLWLRQNH\ LPPRELOLVHULQGLFDWRUIODVKHVRU
ZLWKLQWHJUDWHGWUDQVSRQGHUZKLFKLV LOOXPLQDWHVKDYHWKHV\VWHP
HOHFWURQLFDOO\FRGHG7KH FKHFNHGE\DQDXWKRUL]HG
WUDQVSRQGHULVSODFHGLQYLVLEO\LQWKH ZRUNVKRS
LJQLWLRQNH\
2QO\YDOLGLJQLWLRQNH\VFDQEHXVHG
WRVWDUWWKHHQJLQH
,QYDOLGNH\VPD\RQO\RSHQWKHGRRUV
7KHHQJLQHLVDXWRPDWLFDOO\
$GMXVWWKHRXWVLGHUHDUYLHZPLUURUVVR
LPPRELOLVHGDIWHUWKHNH\LVWXUQHGWR
\RXFDQVHHHDFKVLGHRI\RXUYHKLFOH
/2&.DQGKDVEHHQUHPRYHGIURP
DVZHOODVHDFKVLGHRIWKHURDG
WKHLJQLWLRQVZLWFK
EHKLQG\RX
 .H\VGRRUVDQGZLQGRZV

6LPSO\PRYHWKHDGMXVWLQJOHYHULQWKH )ROGLQJ
GHVLUHGGLUHFWLRQWRDGMXVWWKHPLUURU  :DUQLQJ
DQJOHV
$OZD\VNHHS\RXUPLUURUVSURSHUO\
DGMXVWHGDQGXVHWKHPZKLOH
(OHFWULFDGMXVWPHQW GULYLQJWRLQFUHDVH\RXUYLVLELOLW\RI
REMHFWVDQGRWKHUYHKLFOHVDURXQG
\RX'RQRWGULYHZKLOHHLWKHU
RXWVLGHUHDUYLHZPLUURULVIROGHG
EDFN

+HDWHG

)RUSHGHVWULDQVDIHW\WKHH[WHULRU
PLUURUVZLOOVZLQJRXWRIWKHLUQRUPDO
PRXQWLQJSRVLWLRQLIWKH\DUHVWUXFN
ZLWKVXIILFLHQWIRUFH5HSRVLWLRQWKH
6HOHFWWKHUHOHYDQWH[WHULRUPLUURUE\ PLUURUE\DSSO\LQJVOLJKWSUHVVXUHWR
WXUQLQJWKHFRQWUROWROHIW / RUULJKW WKHPLUURUKRXVLQJ
5 7KHQVZLYHOWKHFRQWUROWRDGMXVW
WKHPLUURU

2SHUDWHGE\SUHVVLQJWKH^EXWWRQ
.H\VGRRUVDQGZLQGRZV 

+HDWLQJZRUNVZLWKWKHHQJLQH ,QWHULRUPLUURUV )DLOXUHWRHQVXUHDFOHDUUHDUYLHZ


UXQQLQJDQGLVVZLWFKHGRII ZKLOHGULYLQJPD\UHVXOWLQ
DXWRPDWLFDOO\DIWHUDSSUR[LPDWHO\
PLQXWHVRUE\SUHVVLQJWKHEXWWRQ
0DQXDODQWLGD]]OH DFROOLVLRQFDXVLQJGDPDJHWR\RXU
YHKLFOHRURWKHUSURSHUW\DQGRU
DJDLQ SHUVRQDOLQMXU\

7RUHGXFHGD]]OHDGMXVWWKHOHYHURQ
WKHXQGHUVLGHRIWKHPLUURUKRXVLQJ

 :DUQLQJ
<RXUYLHZWKURXJKWKHPLUURUPD\
ORVHVRPHFODULW\ZKHQLWLV
DGMXVWHGIRUQLJKWYLVLRQ
7DNHVSHFLDOFDUHZLWKXVLQJ\RXU
LQVLGHUHDUYLHZPLUURUZKHQLWLV
DGMXVWHGIRUQLJKWYLVLRQ
 .H\VGRRUVDQGZLQGRZV

:LQGRZV ,IWKHUHDUHFKLOGUHQRQWKHUHDU 2SHUDWLRQ


VHDWVVZLWFKRQWKHFKLOGVDIHW\ <RXPD\RSHUDWHWKHSRZHUZLQGRZV
0DQXDOZLQGRZV V\VWHPIRUWKHSRZHUZLQGRZV ZKHQWKHLJQLWLRQVZLWFKLV21E\
.HHSDFORVHZDWFKRQWKH XVLQJWKHSRZHUZLQGRZVZLWFKHVRQ
ZLQGRZVZKHQFORVLQJWKHP HDFKGRRUSDQHO
(QVXUHWKDWQRWKLQJEHFRPHV 7RUDLVHWKHZLQGRZSXOOXSWKH
WUDSSHGLQWKHPDVWKH\PRYH VZLWFK
7RORZHUWKHZLQGRZSUHVVGRZQWKH
VZLWFK
5HOHDVHWKHVZLWFKZKHQWKHZLQGRZ
UHDFKHVWKHGHVLUHGSRVLWLRQ

 :DUQLQJ
%RG\SDUWVRXWVLGHWKHYHKLFOHFDQ
EHVWUXFNE\SDVVLQJREMHFWV
7KHGRRUZLQGRZVFDQEHRSHQHGRU .HHSDOOSDUWVRIERG\LQVLGH
FORVHGZLWKWKHZLQGRZZLQGHUV YHKLFOH
&KLOGUHQFDQRSHUDWHDQGEHFRPH
3RZHUZLQGRZV HQWUDSSHGLQSRZHUZLQGRZV
3RZHUZLQGRZVFDQEHRSHUDWHGZLWK
'RQRWOHDYH\RXUNH\VRU
 :DUQLQJ LJQLWLRQRQ
XQDWWHQGHGFKLOGUHQLQ\RXUFDU
2SHUDWHWKHVZLWFKIRUWKHUHVSHFWLYH
7DNHFDUHZKHQRSHUDWLQJWKH 6HULRXVLQMXU\RUGHDWKFDQRFFXU
ZLQGRZE\SXVKLQJWRRSHQRUSXOOLQJ
SRZHUZLQGRZV5LVNRILQMXU\ IURPPLVXVHRISRZHUZLQGRZV
WRFORVH
SDUWLFXODUO\WRFKLOGUHQ
.H\VGRRUVDQGZLQGRZV 

&KLOGVDIHW\V\VWHPIRUUHDU +HDWHGUHDUZLQGRZ 'RQRWVFUDWFKRUGDPDJHWKH


ZLQGRZV GHIURVWHUZLUHVZKHQ\RXFOHDQRU
ZRUNDURXQGWKHUHDUZLQGRZ

6XQYLVRUV
7KHVXQYLVRUVFDQEHIROGHGGRZQRU
VZLYHOOHGWRWKHVLGHWRSUHYHQW
GD]]OLQJ
,IWKHVXQYLVRUVKDYHLQWHJUDOPLUURUV
WKHPLUURUFRYHUVVKRXOGEHFORVHG
ZKHQGULYLQJ

 :DUQLQJ
2SHUDWHGE\SUHVVLQJWKH^EXWWRQ
3UHVVVZLWFKRWRGHDFWLYDWHUHDU +HDWLQJZRUNVZLWKWKHHQJLQH 'RQRWSODFHWKHVXQYLVRULQVXFK
GRRUSRZHUZLQGRZV7RDFWLYDWH UXQQLQJDQGLVVZLWFKHGRII DPDQQHUWKDWLWREVFXUHVYLVLELOLW\
SUHVVRDJDLQ DXWRPDWLFDOO\DIWHUDSSUR[LPDWHO\ RIWKHURDGZD\WUDIILFRURWKHU
PLQXWHVRUE\SUHVVLQJWKHEXWWRQ REMHFWV
DJDLQ

&DXWLRQ
'RQRWXVHVKDUSLQVWUXPHQWVRU
DEUDVLYHZLQGRZFOHDQHUVRQ\RXU
YHKLFOH
VUHDUZLQGRZ
 6HDWVUHVWUDLQWV

+HDGUHVWUDLQWV 7KHXSSHUHGJHRIWKHKHDGUHVWUDLQW
6HDWVUHVWUDLQWV VKRXOGEHDWXSSHUKHDGOHYHO,IWKLV
LVQRWSRVVLEOHIRUH[WUHPHO\WDOO
3RVLWLRQ SHRSOHVHWWRKLJKHVWSRVLWLRQDQG
+HDGUHVWUDLQWV   VHWWRORZHVWSRVLWLRQIRUVPDOOSHRSOH
)URQWVHDWV    :DUQLQJ
+HDGUHVWUDLQWVRQIURQWVHDWV
6HDWEHOWV  
2QO\GULYHZLWKWKHKHDGUHVWUDLQW
$LUEDJV\VWHP   +HLJKWDGMXVWPHQW
VHWWRWKHSURSHUSRVLWLRQ
&KLOGUHVWUDLQWV   5HPRYHGRULPSURSHUO\DGMXVWHG
KHDGUHVWUDLQWVFDQUHVXOWLQ
VHULRXVKHDGDQGQHFNLQMXULHVLQ
FDVHRIDFROOLVLRQ
0DNHVXUHWKDWWKHKHDGUHVWUDLQW
DUHUHDGMXVWHGEHIRUHGULYLQJ

3XOOWKHKHDGUHVWUDLQWXSZDUGV7R
PRYHGRZQSUHVVWKHFDWFKDQGSXVK
WKHKHDGUHVWUDLQWGRZQZDUGV
5HPRYLQJ
3UHVVWKHFDWFKHVDQGSXOOXSWKH
KHDGUHVWUDLQW
6HDWVUHVWUDLQWV 

+HDGUHVWUDLQWVRQUHDUVHDWV )URQWVHDWV ࿢ 6LWZLWKVKRXOGHUVDVIDUEDFN


DJDLQVWWKHEDFNUHVWDVSRVVLEOH
+HLJKWDGMXVWPHQW 6HWWKHEDFNUHVWUDNHVRWKDWLWLV
6HDWSRVLWLRQ SRVVLEOHWRHDVLO\UHDFKWKH
VWHHULQJZKHHOZLWKDUPVVOLJKWO\
 :DUQLQJ EHQW0DLQWDLQFRQWDFWEHWZHHQ
VKRXOGHUVDQGWKHEDFNUHVWZKHQ
2QO\GULYHZLWKWKHVHDWFRUUHFWO\ WXUQLQJWKHVWHHULQJZKHHO'RQRW
DGMXVWHG DQJOHWKHEDFNUHVWWRRIDUEDFN:H
UHFRPPHQGDPD[LPXPUDNHRI
DSSUR[¡
࿢ $GMXVWWKHVWHHULQJZKHHO 
࿢ 6HWVHDWKHLJKWKLJKHQRXJKWR
KDYHDFOHDUILHOGRIYLVLRQRQDOO
VLGHVDQGRIDOOGLVSOD\LQVWUXPHQWV
7KHUHVKRXOGEHDWOHDVWRQHKDQG
3XOOWKHKHDGUHVWUDLQWXSZDUGV7R
RIFOHDUDQFHEHWZHHQKHDGDQGWKH
PRYHGRZQSUHVVWKHFDWFKDQGSXVK
URRIIUDPH<RXUWKLJKVVKRXOGUHVW
WKHKHDGUHVWUDLQWGRZQZDUGV
OLJKWO\RQWKHVHDWZLWKRXWSUHVVLQJ
5HPRYLQJ LQWRLW
3UHVVWKHFDWFKHVDQGSXOOXSWKH ࿢ $GMXVWWKHKHDGUHVWUDLQW 
KHDGUHVWUDLQW ࿢ 6LWZLWKEXWWRFNVDVIDUEDFNDJDLQVW ࿢ $GMXVWWKHKHLJKWRIWKHVHDWEHOW
WKHEDFNUHVWDVSRVVLEOH$GMXVWWKH 
GLVWDQFHEHWZHHQWKHVHDWDQGWKH
SHGDOVVRWKDWOHJVDUHVOLJKWO\
DQJOHGZKHQSUHVVLQJWKHSHGDOV
6OLGHWKHIURQWSDVVHQJHUVHDWDV
IDUEDFNDVSRVVLEOH
 6HDWVUHVWUDLQWV

6HDWDGMXVWPHQW 3XOOKDQGOHVOLGHVHDWUHOHDVH 6HDWKHLJKW


KDQGOH
 'DQJHU 6HDWEDFNUHVWV
'RQRWVLWQHDUHUWKDQFPWRWKH
VWHHULQJZKHHOWRSHUPLWVDIH
DLUEDJGHSOR\PHQW

 :DUQLQJ
1HYHUDGMXVWVHDWVZKLOHGULYLQJDV
WKH\FRXOGPRYHXQFRQWUROODEO\

6HDWSRVLWLRQLQJ 7XUQWKHKDQGZKHHORQWKHRXWVLGHRI
WKHVHDWFXVKLRQXQWLOWKHVHDW
FXVKLRQLVDGMXVWHGWRWKHGHVLUHG
3XOOOHYHUDGMXVWLQFOLQDWLRQDQG SRVLWLRQ
UHOHDVHOHYHU$OORZWKHVHDWWR
HQJDJHDXGLEO\
'RQRWOHDQRQVHDWZKHQDGMXVWLQJ
6HDWVUHVWUDLQWV 

+HDWLQJ 6HDWKHDWLQJLVRSHUDWLRQDOZKHQ 6HDWEHOWV


HQJLQHLVUXQQLQJ

7KHVHDWKHDWHUEXWWRQVDUHORFDWHGLQ
WKHIURQWFRQVROH 7KHEHOWVDUHORFNHGGXULQJKHDY\
DFFHOHUDWLRQRUGHFHOHUDWLRQRIWKH
7RZDUPWKHVHDW
YHKLFOHIRUWKHVDIHW\RIWKH
 7XUQWKHLJQLWLRQNH\RQ RFFXSDQWV
 3UHVVWKHVHDWKHDWLQJEXWWRQIRU
WKHVHDWWKDW\RXZDQWWRZDUP  :DUQLQJ
7KHLQGLFDWRULQWKHEXWWRQZLOO
LOOXPLQDWH )DVWHQVHDWEHOWEHIRUHHDFKWULS
 7RWXUQRIIWKHVHDWKHDWHUSUHVV ,QWKHHYHQWRIDQDFFLGHQWSHRSOH
WKHEXWWRQDJDLQ QRWZHDULQJVHDWEHOWVHQGDQJHU
3URORQJHGXVHRIWKHKLJKHVWVHWWLQJ WKHLUIHOORZRFFXSDQWVDQG
IRUSHRSOHZLWKVHQVLWLYHVNLQLVQRW WKHPVHOYHV
UHFRPPHQGHG
 6HDWVUHVWUDLQWV

6HDWEHOWVDUHGHVLJQHGWREHXVHGE\ %HOWSUHWHQVLRQHUV 7ULJJHUHGEHOWSUHWHQVLRQHUVPXVWEH


RQO\RQHSHUVRQDWDWLPH7KH\DUH UHSODFHGE\DZRUNVKRS%HOW
QRWVXLWDEOHIRUSHRSOHVPDOOHUWKDQ SUHWHQVLRQHUVFDQRQO\EHWULJJHUHG
FP&KLOGUHVWUDLQWV\VWHP RQFH
 1RWH
3HULRGLFDOO\FKHFNDOOSDUWVRIWKHEHOW 'RQRWDIIL[RULQVWDOODFFHVVRULHVRU
V\VWHPIRUGDPDJHDQGSURSHU RWKHUREMHFWVWKDWPD\LQWHUIHUHZLWK
IXQFWLRQDOLW\ WKHRSHUDWLRQRIWKHEHOW
+DYHGDPDJHGFRPSRQHQWV SUHWHQVLRQHUV'RQRWPDNHDQ\
UHSODFHG$IWHUDQDFFLGHQWKDYHWKH PRGLILFDWLRQVWREHOWSUHWHQVLRQHU
EHOWVDQGWULJJHUHGEHOWSUHWHQVLRQHUV FRPSRQHQWVDVWKLVZLOOLQYDOLGDWH
UHSODFHGE\DZRUNVKRS WKHYHKLFOHW\SHDSSURYDO
1RWH 7KUHHSRLQWVHDWEHOW
0DNHVXUHWKDWWKHEHOWVDUHQRW ,QWKHHYHQWRIDKHDGRQRUVLGHRU
GDPDJHGE\VKRHVRUVKDUSHGJHG UHDUHQGFROOLVLRQRIDFHUWDLQVHYHULW\ )DVWHQLQJ
REMHFWVRUWUDSSHG3UHYHQWGLUWIURP WKHIURQWVHDWEHOWVDUHWLJKWHQHG
JHWWLQJLQWRWKHEHOWUHWUDFWRUV
6HDWEHOWUHPLQGHU7   :DUQLQJ
%HOWIRUFHOLPLWHUV ,QFRUUHFWKDQGOLQJ HJUHPRYDORU
2QWKHIURQWVHDWVVWUHVVRQWKHERG\ ILWWLQJRIEHOWV FDQWULJJHUWKHEHOW
LVUHGXFHGE\WKHJUDGXDOUHOHDVHRI WHQVLRQHUVZLWKULVNRILQMXU\
WKHEHOWGXULQJDFROOLVLRQ
'HSOR\PHQWRIWKHEHOWSUHWHQVLRQHUV
LVLQGLFDWHGE\LOOXPLQDWLRQRIFRQWURO
LQGLFDWRUT 
6HDWVUHVWUDLQWV 

:LWKGUDZWKHEHOWIURPWKHUHWUDFWRU 5HPRYLQJ
JXLGHLWXQWZLVWHGDFURVVWKHERG\  :DUQLQJ
DQGLQVHUWWKHODWFKSODWHLQWRWKH
EXFNOH 7KHEHOWPXVWQRWUHVWDJDLQVWKDUG
RUIUDJLOHREMHFWVLQWKHSRFNHWVRI
7LJKWHQWKHODSEHOWUHJXODUO\ZKLOVW \RXUFORWKLQJ
GULYLQJE\SXOOLQJWKHVKRXOGHUEHOW
6HDWEHOWUHPLQGHU 
+HLJKWDGMXVWPHQW

7RUHOHDVHEHOWSUHVVUHGEXWWRQRQ
EHOWEXFNOH

6HDWEHOWVRQWKHUHDUVHDWV
7KHVHDWEHOWIRUWKHUHDUFHQWUHVHDW
FDQRQO\EHZLWKGUDZQIURPWKH
/RRVHRUEXON\FORWKLQJSUHYHQWVWKH  3UHVVEXWWRQ UHWUDFWRULIWKHEDFNUHVWLVLQWKHUHDU
EHOWIURPILWWLQJVQXJO\'RQRWSODFH SRVLWLRQ
REMHFWVVXFKDVKDQGEDJVRUPRELOH  $GMXVWKHLJKWDQGHQJDJH
SKRQHVEHWZHHQWKHEHOWDQG\RXU $GMXVWWKHKHLJKWVRWKDWWKHEHOWOLHV
ERG\ DFURVVWKHVKRXOGHU,WPXVWQRWOLH
DFURVVWKHWKURDWRUXSSHUDUP
'RQRWDGMXVWZKLOHGULYLQJ
 6HDWVUHVWUDLQWV

6HDWEHOWXVHGXULQJSUHJQDQF\ ,QDGGLWLRQZKHQDVHDWEHOWLVZRUQ $LUEDJV\VWHP


SURSHUO\LWLVPRUHOLNHO\WKDWWKH
XQERUQFKLOGZLOOEHVDIHLQDFUDVK
7KHDLUEDJV\VWHPFRQVLVWVRI
7RSURYLGHPD[LPXPSURWHFWLRQ DQXPEHURILQGLYLGXDOV\VWHPV
DSUHJQDQWZRPDQVKRXOGZHDU
:KHQWULJJHUHGWKHDLUEDJVLQIODWH
DWKUHHSRLQWVHDWEHOW
ZLWKLQPLOOLVHFRQGV7KH\DOVRGHIODWH
6KHVKRXOGZHDUWKHODSSRUWLRQRIWKH VRTXLFNO\WKDWLWLVRIWHQXQQRWLFHDEOH
EHOWDVORZDVSRVVLEOHWKURXJKRXWKHU GXULQJWKHFROOLVLRQ
SUHJQDQF\

 :DUQLQJ
7KHODSEHOWPXVWEHSRVLWLRQHGDV
ORZDVSRVVLEOHDFURVVWKHSHOYLV
WRSUHYHQWSUHVVXUHRQWKH
DEGRPHQ

6HDWEHOWVZRUNIRUHYHU\RQH
LQFOXGLQJSUHJQDQWZRPHQ
/LNHDOORFFXSDQWVSUHJQDQWZRPHQ
DUHPRUHOLNHO\WREHVHULRXVO\LQMXUHG
LIWKH\GRQRWZHDUVHDWEHOWV
6HDWVUHVWUDLQWV 

1RWH
 :DUQLQJ 7KHDLUEDJV\VWHPVDQGEHOW  'DQJHU
WHQVLRQHUFRQWUROHOHFWURQLFVDUH
,IKDQGOHGLPSURSHUO\WKHDLUEDJ ORFDWHGLQWKHFHQWUHFRQVROHDUHD 1HYHUDOORZFKLOGUHQRULQIDQWVDQG
V\VWHPVFDQEHWULJJHUHGLQDQ 'RQRWSXWDQ\PDJQHWLFREMHFWVLQ SUHJQDQWZRPHQDQGWKHROGDQG
H[SORVLYHPDQQHU WKLVDUHD WKHZHDNVLWLQWKHIURQWSDVVHQJHU
7KHGULYHUVKRXOGVLWEDFNDVIDUDV VHDWVILWWHGZLWKDLUEDJV
'RQRWVWLFNDQ\WKLQJRQWKHDLUEDJ
SRVVLEOHZKLOHVWLOOPDLQWDLQLQJ FRYHUVDQGGRQRWFRYHUWKHPZLWK )XUWKHUPRUHGRQRWGULYHZLWK
FRQWURORIWKHYHKLFOH,I\RXDUH RWKHUPDWHULDOV DEDE\VHDWILWWHGWKHUHRQ,QFDVH
VLWWLQJWRRFORVHWRWKHDLUEDJLW RIDQDFFLGHQWWKHLPSDFWIURPWKH
FDQFDXVHGHDWKRUVHULRXVLQMXU\ (DFKDLUEDJLVWULJJHUHGRQO\RQFH LQIODWHGDLUEDJFDQFDXVHIDFLDO
ZKHQLWLQIODWHV +DYHGHSOR\HGDLUEDJVUHSODFHGE\ LQMXU\RUGHDWK
DZRUNVKRS
)RUPD[LPXPVDIHW\SURWHFWLRQLQ
DOOW\SHVRIFUDVKHVDOORFFXSDQWV 'RQRWPDNHDQ\PRGLILFDWLRQVWR
WKHDLUEDJV\VWHPDVWKLVZLOO &DXWLRQ
LQFOXGLQJWKHGULYHUVKRXOGDOZD\V
ZHDUWKHLUVHDWEHOWVWRPLQLPL]H LQYDOLGDWHWKHYHKLFOHW\SHDSSURYDO
,IWKHYHKLFOHLVLPSDFWHGE\
WKHULVNRIVHYHUHLQMXU\RUGHDWKLQ ,QWKHHYHQWRIDLUEDJGHSOR\PHQW EXPSVRUREMHFWVRQXQSDYHG
WKHHYHQWRIDFUDVK'RQRWVLWRU KDYHWKHVWHHULQJZKHHOWKH URDGVRUVLGHZDONVWKHDLUEDJV
OHDQXQQHFHVVDULO\FORVHWRWKH LQVWUXPHQWSDQHODOOSDQHOOLQJSDUWV PD\LQIODWH'ULYHVORZO\RQ
DLUEDJZKLOHWKHYHKLFOHLVLQ WKHGRRUVHDOVWKHKDQGOHVDQGWKH VXUIDFHVQRWGHVLJQHGIRUYHKLFOH
PRWLRQ VHDWVUHSODFHGE\DZRUNVKRS WUDIILFWRSUHYHQWXQLQWHQGHG
7KHDLUEDJPD\FDXVHIDFLDORU :KHQDQDLUEDJGHSOR\VWKHUHPD\ DLUEDJGHSOR\PHQW
ERG\VFUDWFKLQMXU\E\EURNHQ EHDORXGQRLVHDQGVPRNH7KHVH
JODVVHVRUJHWWLQJDEXUQE\ FRQGLWLRQVDUHQRUPDODQGDUHQRW :KHQWKHDLUEDJVLQIODWHHVFDSLQJ
H[SORVLRQZKLOHDLUEDJLV GDQJHURXVEXWLWPD\VWLPXODWHVNLQ KRWJDVHVPD\FDXVHEXUQV
GHSOR\HG RIWKHSDVVHQJHU,IWKHVWLPXODWLRQLV &RQWUROLQGLFDWRUTIRUDLUEDJV\VWHPV
SHUVLVWHQWFRQWDFWDGRFWRU 
 6HDWVUHVWUDLQWV

)URQWDLUEDJV\VWHP 6LGHDLUEDJV\VWHP
7KHIURQWDLUEDJV\VWHPFRQVLVWVRI
RQHDLUEDJLQWKHVWHHULQJZKHHODQG
RQHLQWKHLQVWUXPHQWSDQHORQWKH
IURQWSDVVHQJHUVLGH7KHVHFDQEH
LGHQWLILHGE\WKHZRUG$
$,5%$*

7KHIRUZDUGPRYHPHQWRIWKHIURQW
VHDWRFFXSDQWVLVUHWDUGHGWKHUHE\
FRQVLGHUDEO\UHGXFLQJWKHULVNRI 7KHVLGHDLUEDJV\VWHPFRQVLVWVRIDQ
LQMXU\WRWKHXSSHUERG\DQGKHDG DLUEDJLQHDFKIURQWVHDWEDFNUHVW
7KLVFDQEHLGHQWLILHGE\WKHZRUG
 :DUQLQJ $,5%$*

7KHIURQWDLUEDJV\VWHPLVWULJJHUHGLQ 2SWLPXPSURWHFWLRQLVRQO\
WKHHYHQWRIDQDFFLGHQWRIDFHUWDLQ SURYLGHGZKHQWKHVHDWLVLQWKH
VHYHULW\LQWKHGHSLFWHGDUHD7KH SURSHUSRVLWLRQ 
LJQLWLRQPXVWEHRQ .HHSWKHDUHDLQZKLFKWKHDLUEDJ
LQIODWHVFOHDURIREVWUXFWLRQV
)LWWKHVHDWEHOWFRUUHFWO\DQG
HQJDJHVHFXUHO\2QO\WKHQWKH
DLUEDJLVDEOHWRSURWHFW
6HDWVUHVWUDLQWV 

7KHULVNRILQMXU\WRWKHXSSHUERG\ &XUWDLQDLUEDJV\VWHP
DQGSHOYLVLQWKHHYHQWRIDVLGHRQ
FROOLVLRQLVFRQVLGHUDEO\UHGXFHG

 :DUQLQJ
.HHSWKHDUHDLQZKLFKWKHDLUEDJ
LQIODWHVFOHDURIREVWUXFWLRQV

1RWH
2QO\XVHSURWHFWLYHVHDWFRYHUVWKDW
KDYHEHHQDSSURYHGIRUWKHYHKLFOH
%HFDUHIXOQRWWRFRYHUWKHDLUEDJV
7KHVLGHDLUEDJV\VWHPLVWULJJHUHGLQ
WKHHYHQWRIDQDFFLGHQWRIDFHUWDLQ
VHYHULW\7KHLJQLWLRQPXVWEHRQ  :DUQLQJ 7KHFXUWDLQDLUEDJV\VWHPFRQVLVWVRI
DQDLUEDJLQWKHURRIIUDPHRQHDFK
&KLOGUHQZKRDUHVHDWHGLQFORVH VLGH7KLVFDQEHLGHQWLILHGE\WKH
SUR[LPLW\WRDVLGHDLUEDJPD\EH ZRUG$$,5%$*RQWKHURRISLOODUV
DWULVNRIVHULRXVRUIDWDOLQMXU\LIWKH
DLUEDJGHSOR\VHVSHFLDOO\LIWKH
FKLOGಫVKHDGQHFNRUFKHVWLV
FORVHWRWKHDLUEDJDWWKHWLPHRI
GHSOR\PHQW
1HYHUOHW\RXUFKLOGOHDQRQWKH
GRRURUFORVHWRWKHVLGHDLUEDJ
PRGXOH
 6HDWVUHVWUDLQWV

7KHULVNRILQMXU\WRWKHKHDGLQWKH
HYHQWRIDVLGHLPSDFWLVFRQVLGHUDEO\
UHGXFHG

 :DUQLQJ
.HHSWKHDUHDLQZKLFKWKHDLUEDJ
LQIODWHVFOHDURIREVWUXFWLRQV
7KHKRRNVRQWKHKDQGOHVLQWKH
URRIIUDPHDUHRQO\VXLWDEOHIRU
KDQJLQJXSOLJKWDUWLFOHVRI
FORWKLQJZLWKRXWFRDWKDQJHUV'R
7KHFXUWDLQDLUEDJV\VWHPLVWULJJHUHG QRWNHHSDQ\LWHPVLQWKHVH )URQWSDVVHQJHUDLUEDJV\VWHPFDQ
LQWKHHYHQWRIDQDFFLGHQWRIDFHUWDLQ FORWKHV EHGHDFWLYDWHGYLDDORFNRQWKHVLGH
VHYHULW\7KHLJQLWLRQPXVWEHRQ RIWKHLQVWUXPHQWSDQHOYLVLEOHZKHQ
$LUEDJGHDFWLYDWLRQ WKHIURQWSDVVHQJHUGRRULVRSHQ
7KHIURQWSDVVHQJHUDLUEDJV\VWHP
KDVWREHGHDFWLYDWHGLIDFKLOG  :DUQLQJ
UHVWUDLQWV\VWHPLVWREHILWWHGRQWKLV
VHDW7KHVLGHDLUEDJDQGFXUWDLQ 'HDFWLYDWHIURQWSDVVHQJHUDLUEDJ
DLUEDJV\VWHPVWKHEHOWWHQVLRQHUV V\VWHPZKHQWKHIURQWSDVVHQJHU
DQGDOOGULYHUDLUEDJV\VWHPVZLOO VHDWLVRFFXSLHGE\DFKLOG
UHPDLQDFWLYH $FWLYDWHIURQWSDVVHQJHUDLUEDJ
V\VWHPZKHQDQDGXOWLVRQWKH
IURQWSDVVHQJHUVHDW
6HDWVUHVWUDLQWV 

8VHWKHLJQLWLRQNH\WRFKRRVHWKH $VORQJDVWKHFRQWUROLQGLFDWRU &KLOGUHVWUDLQWV


SRVLWLRQ FRIILVQRWLOOXPLQDWHGWKHIURQW
SDVVHQJHUDLUEDJV\VWHPZLOOLQIODWH
FRII IURQWSDVVHQJHUDLUEDJDUH
LQWKHHYHQWRIDFROOLVLRQ
&KLOGUHVWUDLQWV\VWHPV
GHDFWLYDWHGDQGZLOOQRW
LQIODWHLQWKHHYHQWRI :HUHFRPPHQGWKH*0FKLOGUHVWUDLQW
&KDQJHVWDWXVRQO\ZKHQWKHYHKLFOH
DFROOLVLRQ&RQWURO V\VWHPZKLFKLVJHDUHGVSHFLILFDOO\WR
LVVWRSSHGZLWKWKHLJQLWLRQRII
LQGLFDWRUFRII WKHYHKLFOH
6WDWXVUHPDLQVXQWLOWKHQH[WFKDQJH
LOOXPLQDWHVFRQWLQXRXVO\ :KHQDFKLOGUHVWUDLQWV\VWHPLVEHLQJ
$FKLOGUHVWUDLQWV\VWHP &RQWUROLQGLFDWRUIRUDLUEDJ XVHGSD\DWWHQWLRQWRWKHIROORZLQJ
FDQEHLQVWDOOHGLQ GHDFWLYDWLRQ  XVDJHDQGLQVWDOODWLRQLQVWUXFWLRQV
DFFRUGDQFHZLWKWKHFKDUW DQGDOVRWKRVHVXSSOLHGZLWKWKHFKLOG
GRQ IURQWSDVVHQJHUDLUEDJDUH UHVWUDLQWV\VWHP
DFWLYH1RFKLOGUHVWUDLQW $OZD\VFRPSO\ZLWKORFDORUQDWLRQDO
V\VWHPPD\EHLQVWDOOHG UHJXODWLRQV,QVRPHFRXQWULHVWKH
XVHRIFKLOGUHVWUDLQWV\VWHPVLV
IRUELGGHQRQFHUWDLQVHDWV

 :DUQLQJ
:$51,1*ಥ(;75(0(+$=$5'
'RQRWXVHDUHDUZDUGIDFLQJFKLOG
UHVWUDLQWRQDVHDWSURWHFWHGE\DQ
DLUEDJLQIURQWRILW
7KHFKLOGFRXOGEHVHULRXVO\
LQMXUHGLIWKHDLUEDJLQIODWHVDVWKH
FKLOG
VKHDGZRXOGEHYHU\FORVHWR
WKHLQIODWLQJDLUEDJ
 6HDWVUHVWUDLQWV

SRVVLEOHZLWKDFKLOGWKDWLVVPDOOHU 1RWH
 :DUQLQJ WKDQFPZHVWURQJO\DGYLVHWR 'RQRWVWLFNDQ\WKLQJRQWKHFKLOG
XVHDQDSSURSULDWHFKLOGUHVWUDLQW UHVWUDLQWV\VWHPVDQGGRQRWFRYHU
:KHQXVLQJDFKLOGUHVWUDLQW V\VWHPHYHQWKRXJKWKLVPLJKWGXHWR WKHPZLWKDQ\RWKHUPDWHULDOV
V\VWHPRQWKHIURQWSDVVHQJHUಫV WKHDJHRIWKHFKLOGQRORQJHUEH
VHDWWKHDLUEDJV\VWHPVIRUWKH $FKLOGUHVWUDLQWV\VWHPZKLFKKDV
OHJDOO\ELQGLQJ EHHQVXEMHFWHGWRVWUHVVLQDQ
IURQWSDVVHQJHUಫVVHDWPXVWEH
GHDFWLYDWHGLIQRWWKHWULJJHULQJRI 1HYHUFDUU\DFKLOGZKLOVWWUDYHOOLQJLQ DFFLGHQWPXVWEHUHSODFHG
WKHDLUEDJVSRVHVDULVNRIIDWDO WKHYHKLFOH7KHFKLOGZLOOEHFRPHWRR 3OHDVHHQVXUHWKDWLQIDQWVDQG
LQMXU\WRWKHFKLOG KHDY\WRKROGLQWKHHYHQWRI FKLOGUHQDUHVHDWHGLQWKHUHDUVHDWV
DFROOLVLRQ XVLQJFKLOGUHVWUDLQWV
7KLVLVHVSHFLDOO\WKHFDVHLIUHDU
IDFLQJFKLOGUHVWUDLQWV\VWHPVDUH :KHQWUDQVSRUWLQJFKLOGUHQXVHWKH 8QWLOWKHFKLOGUHQFDQXVHVHDWEHOWV
XVHGRQWKHIURQWSDVVHQJHUಫV FKLOGUHVWUDLQWV\VWHPVVXLWDEOHIRUWKH SOHDVHVHOHFWDFKLOGUHVWUDLQW
VHDW FKLOG
VZHLJKW VXLWDEOHIRULWVDJHDQGPDNHVXUH
(QVXUHWKDWWKHFKLOGUHVWUDLQWV\VWHP WKHFKLOGZHDUVLW3OHDVHVHHWKH
6HOHFWLQJWKHULJKWV\VWHP WREHLQVWDOOHGLVFRPSDWLEOHZLWKWKH LQVWUXFWLRQVRQWKHUHOHYDQWSURGXFWV
&KLOGUHQVKRXOGWUDYHOIDFLQJ YHKLFOHW\SH IRUFKLOGUHVWUDLQWV
UHDUZDUGVLQWKHYHKLFOHDVORQJDV (QVXUHWKDWWKHPRXQWLQJORFDWLRQRI
SRVVLEOH7KLVPDNHVVXUHWKDWWKH WKHFKLOGUHVWUDLQWV\VWHPZLWKLQWKH
FKLOG
VEDFNERQHZKLFKLVVWLOOYHU\ YHKLFOHLVFRUUHFW
ZHDNLVXQGHUOHVVVWUDLQLQWKHHYHQW $OORZFKLOGUHQWRHQWHUDQGH[LWWKH
RIDQDFFLGHQW YHKLFOHRQO\RQWKHVLGHIDFLQJDZD\
&KLOGUHQXQGHUWKHDJHRI\HDUV IURPWKHWUDIILF
WKDWDUHVPDOOHUWKDQFPDUHRQO\ :KHQWKHFKLOGUHVWUDLQWV\VWHPLVQRW
DOORZHGWRWUDYHOLQDUHVWUDLQWV\VWHP LQXVHVHFXUHWKHVHDWZLWKDVHDWEHOW
WKDWLVVXLWDEOHIRUWKHFKLOG6XLWDEOH RUUHPRYHLWIURPWKHYHKLFOH
DUHUHVWUDLQWV\VWHPVWKDWFRPSO\ZLWK
(&(RU(&(6LQFH
DSURSHUSRVLWLRQRIWKHEHOWLVUDUHO\
6HDWVUHVWUDLQWV 

&KLOGUHVWUDLQWLQVWDOODWLRQORFDWLRQV
3HUPLVVLEOHRSWLRQVIRUILWWLQJDFKLOGUHVWUDLQWV\VWHP
2QIURQWSDVVHQJHUVHDW
:HLJKWDQGDJHFODVV DFWLYDWHGDLUEDJ GHDFWLYDWHGDLUEDJ 2QUHDURXWERDUGVHDWV 2QUHDUFHQWUHVHDW
*URXSXSWRNJ ; 8 8 8
RUDSSUR[PRQWKV
*URXSXSWRNJ ; 8 8 8
RUDSSUR[\HDUV
*URXS,WRNJ ; 8 8 8
RUDSSUR[PRQWKVWR\HDUV
*URXS,,WRNJ ; ; 8 8
RUDSSUR[WR\HDUV
*URXS,,,WRNJ ; ; 8 8
RUDSSUR[WR\HDUV

 2QO\LIIURQWSDVVHQJHUVHDWDLUEDJV\VWHPVDUHGHDFWLYDWHG,IWKHFKLOGUHVWUDLQWV\VWHPLVEHLQJVHFXUHGXVLQJDWKUHH
SRLQWVHDWEHOWHQVXUHWKDWWKHYHKLFOHVHDWEHOWUXQVIRUZDUGVIURPWKHXSSHUDQFKRUDJHSRLQW
 6HDWDYDLODEOHZLWK,62),;DQG7RS7HWKHUPRXQWLQJEUDFNHWV
8 8QLYHUVDOVXLWDELOLW\LQFRQMXQFWLRQZLWKWKUHHSRLQWVHDWEHOW
; 1RFKLOGUHVWUDLQWV\VWHPSHUPLWWHGLQWKLVZHLJKWFODVV
 6HDWVUHVWUDLQWV

3HUPLVVLEOHRSWLRQVIRUILWWLQJDQ,62),;FKLOGUHVWUDLQWV\VWHP
:HLJKWFODVV 6L]HFODVV )L[WXUH 2QIURQWSDVVHQJHUVHDW 2QUHDURXWERDUGVHDWV 2QUHDUFHQWUHVHDW
*URXSXSWRNJ ( ,625 ; ,/ ;
*URXSXSWRNJ ( ,625 ; ,/ ;
' ,625 ; ,/ ;
& ,625 ; ,/ ;
*URXS,WRNJ ' ,625 ; ,/ ;
& ,625 ; ,/ ;
% ,62) ; ,/,8) ;
% ,62); ; ,/,8) ;
$ ,62) ; ,/,8) ;

,/ 6XLWDEOHIRUSDUWLFXODU,62),;UHVWUDLQWV\VWHPVRIWKH
VSHFLILFYHKLFOH

UHVWULFWHG
RU
VHPLXQLYHUVDO
FDWHJRULHV
7KH,62),;UHVWUDLQWV\VWHPPXVWEHDSSURYHGIRUWKHVSHFLILFYHKLFOHW\SH
,8) 6XLWDEOHIRU,62),;IRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPVRIXQLYHUVDOFDWHJRU\DSSURYHGIRUXVHLQWKLVZHLJKWFODVV
; 1R,62),;FKLOGUHVWUDLQWV\VWHPDSSURYHGLQWKLVZHLJKWFODVV

 0RYHIURQWVHDWWRPRVWIRUZDUGSRVLWLRQRUPRYHIRUZDUGXQWLOFKLOGUHVWUDLQWV\VWHPGRHVQRWKDYHDQ\LQWHUIHUHQFH
ZLWKIURQWVHDWEDFNUHVW
6HDWVUHVWUDLQWV 

,62),;VL]HFODVVDQGVHDWGHYLFH
$ಥ,62) )RUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPIRUFKLOGUHQRIPD[LPXPVL]HLQWKHZHLJKWFODVVWRNJ
%ಥ,62) )RUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPIRUVPDOOHUFKLOGUHQLQWKHZHLJKWFODVVWRNJ
%ಥ,62); )RUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPIRUVPDOOHUFKLOGUHQLQWKHZHLJKWFODVVWRNJ
&ಥ,625 5HDUIDFLQJFKLOGUHVWUDLQWV\VWHPIRUFKLOGUHQRIPD[LPXPVL]HLQWKHZHLJKWFODVVXSWRNJ
'ಥ,625 5HDUIDFLQJFKLOGUHVWUDLQWV\VWHPIRUVPDOOHUFKLOGUHQLQWKHZHLJKWFODVVXSWRNJ
(ಥ,625 5HDUIDFLQJFKLOGUHVWUDLQWV\VWHPIRU\RXQJFKLOGUHQLQWKHZHLJKWFODVVXSWRNJ
 6HDWVUHVWUDLQWV

,62),;FKLOGUHVWUDLQW ORDGFRPSDUWPHQWDOORZLQJFKLOG
UHVWUDLQWVWREHDWWDFKHGWRWKHUHDU
V\VWHPV VHDWV
7RLQVWDOODFKLOGUHVWUDLQWZKLFK
FRPHVHTXLSSHGZLWK,62),;ORZDQG
7RSWHWKHUDQFKRUDJHDWWDFKPHQWV
IROORZWKHLQVWUXFWLRQVVXSSOLHGZLWK
\RXUFKLOGUHVWUDLQW
3OHDVHWDNHWKHWLPHWRFDUHIXOO\UHDG
DQGIROORZDOORIWKHLQVWUXFWLRQVRQWKH
IROORZLQJSDJHVDQGWKHLQVWUXFWLRQV
VXSSOLHGZLWK\RXUFKLOGUHVWUDLQW
 /RFDWHWKHWZRORZHUDQFKRU
<RXUFKLOG
VVDIHW\GHSHQGVRQLW
SRVLWLRQV7KHORFDWLRQRIHDFK
,I\RXKDYHTXHVWLRQVRUDQ\GRXEWV ORZHUDQFKRULVLGHQWLILHGZLWK
ZKHWKHU\RXKDYHLQVWDOOHG\RXUFKLOG DFLUFXODUPDUNLQJRQWKHORZHU
,QWKHSDVWFKLOGUHVWUDLQWVKDYHEHHQ UHVWUDLQWSURSHUO\FRQWDFWWKHFKLOG HGJHRIWKHUHDUVHDWEDFNUHVW
DWWDFKHGWRDYHKLFOH
VVHDWE\VHDW UHVWUDLQWPDQXIDFWXUHU,I\RXDUHVWLOO
EHOWV$VDUHVXOWFKLOGUHVWUDLQWVZHUH  0DNHVXUHWKHUHDUHQRIRUHLJQ
KDYLQJWURXEOHLQVWDOOLQJWKHFKLOG
RIWHQLQVWDOOHGLQFRUUHFWO\RUWRR REMHFWVDURXQGORZHUDQFKRUV
UHVWUDLQWLQ\RXUYHKLFOHZH
ORRVHO\WRDGHTXDWHO\SURWHFW\RXU LQFOXGLQJVHDWEHOWEXFNOHVRUVHDW
UHFRPPHQGWKDW\RXFRQVXOW\RXU
FKLOG EHOWV)RUHLJQREMHFWVFDQ
DXWKRUL]HGZRUNVKRS
LQWHUIHUHZLWKWKHSURSHUODWFKLQJ
:HQRZHTXLS\RXUYHKLFOHZLWK ,QVWDOODWLRQRI,62),;FKLOGUHVWUDLQW RIWKHFKLOGUHVWUDLQWWRWKH
,62),;ORZDQFKRUDJHVDWWKHWZR V\VWHPV DQFKRUV
UHDURXWERDUGVHDWLQJSRVLWLRQVDQG
 6HOHFWRQHRIWKHUHDURXWERDUG
ZLWK7RSWHWKHUDQFKRUDJHVDWERWK
VHDWLQJSRVLWLRQVIRULQVWDOODWLRQRI
VLGHVRIWKHUHDUWDLOPHPEHULQWKH
WKHFKLOGUHVWUDLQW
6HDWVUHVWUDLQWV 

 3ODFHWKHFKLOGUHVWUDLQWRQWKH
VHDWRYHUWKHWZRORZHUDQFKRUV  :DUQLQJ  :DUQLQJ
DQGDWWDFKLWWRWKHDQFKRUV
IROORZLQJWKHLQVWUXFWLRQVVXSSOLHG 8VHDOO,62),;ORZDQG7RSWHWKHU &KLOGUHVWUDLQWV\VWHPSODFHGLQ
ZLWKWKHFKLOGUHVWUDLQW DQFKRUDJHVIRUWKHLUGHVLJQHG WKHIURQWVHDWFRXOGFDXVHVHULRXV
SXUSRVHRQO\ LQMXU\RUGHDWK
 $GMXVWDQGWLJKWHQWKHFKLOG
UHVWUDLQWDFFRUGLQJWRWKH ,62),;ORZDQG7RSWHWKHU 1HYHULQVWDOODUHDUIDFLQJFKLOG
LQVWUXFWLRQVVXSSOLHGZLWKWKHFKLOG DQFKRUDJHVDUHGHVLJQHGRQO\WR UHVWUDLQWLQWKHIURQWVHDWRI
UHVWUDLQW KROGFKLOGUHVWUDLQWVZKLFKFRPH DYHKLFOHHTXLSSHGZLWKDIURQW
HTXLSSHGZLWKORZDQGWRS SDVVHQJHUDLUEDJ
DQFKRUDJHDWWDFKPHQWV $FKLOGLQDUHDUIDFLQJFKLOG
&DXWLRQ
'RQRWXVH,62),;ORZDQG7RS UHVWUDLQWLQVWDOOHGLQWKHIURQWVHDW
8QXVHGFKLOGUHVWUDLQWV\VWHP WHWKHUDQFKRUDJHVWRKROGDGXOW FDQEHVHULRXVO\LQMXUHGLIWKHIURQW
FRXOGPRYHIRUZDUG VHDWEHOWVKDUQHVVHVRURWKHU SDVVHQJHUDLUEDJLQIODWHV
LWHPVRIHTXLSPHQWLQ\RXUYHKLFOH 6HFXUHDUHDUIDFLQJFKLOGUHVWUDLQW
5HPRYHFKLOGUHVWUDLQWV\VWHPLI
QRWLQXVHRUVHFXUHLWZLWKWKHVHDW 8VLQJ,62),;ORZDQG7RSWHWKHU RQWKHUHDUVHDW
EHOW DQFKRUDJHVWRKROGDGXOWVHDW $IURQWIDFLQJFKLOGUHVWUDLQW
EHOWVKDUQHVVHVRURWKHULWHPVRU VKRXOGEHVHFXUHGRQWKHUHDUVHDW
1RWH HTXLSPHQWLQ\RXUYHKLFOHZLOOQRW ZKHQHYHUSRVVLEOH
6LQFHDVHDWEHOWRUFKLOGUHVWUDLQW SURYLGHDGHTXDWHSURWHFWLRQLQWKH
FDVHRIDFROOLVLRQDQGFRXOGUHVXOW ,ILQVWDOOHGRQWKHIURQWSDVVHQJHU
V\VWHPFDQEHFRPHYHU\KRWLILWLV VHDWDGMXVWWKHVHDWDVIDUEDFNDV
OHIWLQDFORVHGYHKLFOHEHVXUHDQG LQLQMXULHVRUHYHQGHDWK
LWZLOOJR
FKHFNWKHVHDWFRYHUDQGEXFNOHV
EHIRUHSODFLQJDFKLOGWKHUH
 6HDWVUHVWUDLQWV

7RDFFHVVWKH7RSWHWKHUDQFKRU
&DXWLRQ SRLQWVGRWKHIROORZLQJ
)XOOVL]HUHDUIDFLQJFKLOGVHDWV  5HPRYHWKHORDGFRPSDUWPHQW
PD\QRWEHVXLWDEOHIRULQVWDOODWLRQ FRYHU
&RQWDFW\RXU5HWDLOHUIRU  $WWDFKWKHFOLSRQWKHFKLOG
LQIRUPDWLRQUHJDUGLQJVXLWDEOH UHVWUDLQW
VWHWKHUVWUDSWRWKH
FKLOGUHVWUDLQWV\VWHPV 7RSWHWKHUDQFKRUPDNLQJVXUHWR
,QVWDOODWLRQRIFKLOGUHVWUDLQWVZLWK UHPRYHDQ\WZLVWVLQWKHWHWKHU
,62),;ORZDQG7RSWHWKHU VWUDS
DQFKRUDJHDWWDFKPHQWV ,IWKHSRVLWLRQ\RXDUHXVLQJKDV
DQDGMXVWDEOHKHDGUHVWUDLQWDQG
7RSWHWKHUIDVWHQLQJH\HV \RXDUHXVLQJDGXDOWHWKHUURXWH
WKHWHWKHUDURXQGWKHKHDG  :DUQLQJ
UHVWUDLQW
,IWKHSRVLWLRQ\RXDUHXVLQJKDV 0DNHVXUHWKHFOLSRQWKHFKLOG
DQDGMXVWDEOHKHDGUHVWUDLQWDQG UHVWUDLQW
VWHWKHUVWUDSLVSURSHUO\
\RXDUHXVLQJDVLQJOHWHWKHUUDLVH DWWDFKHGWRWKH7RSWHWKHU
WKHKHDGUHVWUDLQWDQGURXWHWKH DQFKRUDJH
WHWKHUXQGHUWKHKHDGUHVWUDLQW ,QFRUUHFWDWWDFKPHQWFRXOGUHQGHU
DQGLQEHWZHHQWKHKHDGUHVWUDLQW WKHWHWKHUVWUDSDQGWRSWHWKHU
SRVWV DQFKRUDJHLQHIIHFWLYH
 7LJKWHQWKHFKLOGUHVWUDLQW
VWHWKHU
VWUDSDFFRUGLQJWRWKHLQVWUXFWLRQV
VXSSOLHGZLWKWKHFKLOGUHVWUDLQW
 3XVKDQGSXOORQWKHFKLOGUHVWUDLQW
DIWHULQVWDOODWLRQWREHVXUHWKH
FKLOGUHVWUDLQWLVVHFXUH
6WRUDJH 

6WRUDJHFRPSDUWPHQWV &RLQER[
6WRUDJH
,QVWUXPHQWSDQHOVWRUDJH
6WRUDJHFRPSDUWPHQWV  
/RDGFRPSDUWPHQW   6WRUDJHEHORZWKHLQVWUXPHQWSDQHO
5RRIUDFNV\VWHP  
/RDGLQJLQIRUPDWLRQ  

6WRUH\RXUFRLQVLQDSODFH

7KHVWRUDJHLVXVHGIRUVPDOODUWLFOHV
HWF
 6WRUDJH

*ORYHER[ &XSKROGHUV 7KHFXSKROGHUVDUHORFDWHGLQWKH


IURQWFRQVROHDQGUHDUSDUWRIWKH
FHQWHUFRQVROH

 :DUQLQJ
'RQRWSODFHXQFRYHUHGFXSVRI
KRWOLTXLGLQWKHFXSKROGHUZKLOH
WKHYHKLFOHLVLQPRWLRQ,IWKHKRW
OLTXLGVSLOOV\RXEXUQ\RXUVHOI
6XFKDEXUQWRWKHGULYHUFRXOG
OHDGWRORVVRIFRQWURORIWKH
YHKLFOH
7RUHGXFHWKHULVNRISHUVRQDO
7RRSHQSXOOWKHJULS LQMXU\LQWKHHYHQWRIVXGGHQVWRS
RUFROOLVLRQGRQRWSODFH
 :DUQLQJ XQFRYHUHGRUXQVHFXUHGERWWOHV
JODVVHVFDQVHWFLQWKHFXS
7RUHGXFHWKHULVNRILQMXU\LQDQ KROGHUZKLOHWKHYHKLFOHLVLQ
DFFLGHQWRUDVXGGHQVWRSDOZD\V PRWLRQ
NHHSWKHJORYHER[GRRUFORVHG
ZKLOHGULYLQJ
6WRUDJH 

6XQJODVVHVVWRUDJH 8QGHUVHDWVWRUDJH /RDGFRPSDUWPHQW


)ROGLQJGRZQUHDUEDFNUHVWV

 :DUQLQJ
'RQRWVWDFNOXJJDJHRURWKHU
FDUJRKLJKHUWKDQWKHIURQWVHDWV
'RQRWDOORZSDVVHQJHUVWRVLWRQ
WKHIROGHGVHDWEDFNUHVWVZKLOHWKH
YHKLFOHLVLQPRWLRQ
8QUHVWUDLQHGORDGRUSDVVHQJHUV
RQDIROGHGVHDWEDFNUHVWFDQEH
)ROGGRZQDQGRSHQ 7RXVHWKHIURQWSDVVHQJHUVHDW WKURZQDURXQGZLWKLQRUHMHFWHG
'RQRWXVHIRUVWRULQJKHDY\REMHFWV XQGHUWUD\SXOOXSRQWKHHQGRIWKH IURPWKHYHKLFOHLQDVXGGHQVWRS
WUD\DQGSXOOLWWRZDUGWKHLQVWUXPHQW RUDFFLGHQW7KLVFDQUHVXOWLQ
SDQHO3XVKWKHWUD\WRZDUGWKHVHDW VHULRXVLQMXULHVRUGHDWK
WRUHWXUQLWWRLWVRULJLQDOSRVLWLRQ
7RIROGGRZQWKHUHDUEDFNUHVW
VHSDUDWHO\
 3XOOXSWKHIURQWRIWKHUHDUVHDW
FXVKLRQWRUHOHDVHLW,I\RXU
YHKLFOHLVHTXLSSHGZLWKUHDUVHDW
KHDGUHVWUDLQWVWKH\PXVWEH
UHPRYHG
 *XLGHWKHUHOHDVHGUHDUVHDW
FXVKLRQWRDQXSULJKWSRVLWLRQ
 6WRUDJH

1RWH  3XOOXSWKHUHOHDVHNQRERQWRSRI
7RHQVXUHHQRXJKURRPIRUUHDUVHDW WKHUHDUVHDWEDFNUHVWDQGIROGLW &DXWLRQ
FXVKLRQRSHUDWLRQVOLGHWKHIURQW IRUZDUGDQGGRZQ
VHDWIRUZDUGDQGDGMXVWWKHIURQW :KHQUHWXUQLQJUHDUVHDWEDFNUHVW
 $GMXVWWKHIURQWVHDWVWRWKH WRWKHXSULJKWSRVLWLRQSODFHWKH
VHDWEDFNUHVWXSULJKW GHVLUHGSRVLWLRQ UHDUVHDWEHOWDQGEXFNOHV
7RUHWXUQWKHEDFNUHVWWRWKHXSULJKW EHWZHHQWKHUHDUVHDWEDFNUHVW
SRVLWLRQOLIWLWXSDQGSXVKLWILUPO\LQWR DQGRQHFXVKLRQ0DNHVXUHWKH
SODFH UHDUVHDWEHOWDQGEXFNOHVGRQRW
0DNHVXUHWKHVHDWEHOWVDUHQRW JHWSLQFKHGXQGHUWKHUHDUVHDW
SLQFKHGE\WKHODWFK FXVKLRQ
7RUHWXUQWKHUHDUVHDWFXVKLRQSXW 0DNHVXUHWKHVHDWEHOWVDUHQRW
WKHUHDUSDUWRIWKHVHDWFXVKLRQLQLWV WZLVWHGRUFDXJKWLQWKHVHDW
RULJLQDOSRVLWLRQHQVXULQJWKDWWKH EDFNUHVWDQGDUHDUUDQJHGLQWKHLU
VHDWEHOWEXFNOHVWUDSVDUHQRWWZLVWHG SURSHUSRVLWLRQ
RUFDXJKWXQGHUWKHVHDWFXVKLRQ
WKHQSXVKWKHIURQWSDUWRIWKHVHDW
FXVKLRQILUPO\GRZQXQWLOLWODWFKHV
6WRUDJH 

 :DUQLQJ  :DUQLQJ &DXWLRQ


(QVXUHWKDWWKHUHDUVHDW 1HYHUDOORZSDVVHQJHUVWRVLWRQ 7KHFRQYHQLHQFHQHWLVGHVLJQHG
EDFNUHVWVDUHDOOWKHZD\EDFNDQG WRSRIWKHIROGHGGRZQEDFNUHVWV IRUVPDOOORDGV'RQRWFDUU\KHDY\
ORFNHGLQSRVLWLRQEHIRUHRSHUDWLQJ ZKLOHWKHFDULVPRYLQJDVWKLVLV REMHFWVLQ\RXUFRQYHQLHQFHQHW
WKHYHKLFOHZLWKSDVVHQJHUVRQWKH QRWDSURSHUVHDWLQJSRVLWLRQDQG
UHDUVHDW QRVHDWEHOWVDUHDYDLODEOHIRUXVH
'RQRWSXOOWKHUHOHDVHNQREVRQ 7KLVFRXOGUHVXOWLQVHULRXVLQMXU\
WKHWRSRIWKHVHDWEDFNUHVWZKLOH RUGHDWKLQFDVHRIDQDFFLGHQWRU
WKHYHKLFOHLVPRYLQJ VXGGHQVWRS
,WFDQFDXVHLQMXULHVRUGDPDJHWR 2EMHFWVFDUULHGRQWKHIROGHG
WKHRFFXSDQWV GRZQEDFNUHVWVKRXOGQRWH[WHQG
KLJKHUWKDQWKHWRSRIWKHIURQW
VHDWV7KLVFRXOGDOORZFDUJRWR
&DXWLRQ VOLGHIRUZDUGDQGFDXVHLQMXU\RU
GDPDJHGXULQJVXGGHQVWRSV
)ROGLQJDUHDUVHDWZLWKWKHVHDW
EHOWVVWLOOIDVWHQHGPD\FDXVH
GDPDJHWRWKHVHDWRUWKHVHDW &RQYHQLHQFHQHW
EHOWV <RXFDQFDUU\VPDOOORDGVZLWK\RXU
$OZD\VXQEXFNOHWKHVHDWEHOWV RSWLRQDOFRQYHQLHQFHQHW
DQGUHWXUQWKHPWRWKHLUQRUPDO 7RLQVWDOOWKHQHWKDQJHDFKORRSLQ
VWRZHGSRVLWLRQEHIRUHIROGLQJ WKHXSSHUFRUQHURIWKHQHWWRERWK
DUHDUVHDW DQFKRUVRIWKHEDFNSDQHO
 6WRUDJH

5RRIUDFNV\VWHP /RDGLQJLQIRUPDWLRQ KLQGHUWKHIUHHGRPRIPRYHPHQWRI


WKHGULYHU'RQRWSODFHDQ\
XQVHFXUHGREMHFWVLQWKHLQWHULRU
5RRIUDFN ࿢ +HDY\REMHFWVLQWKHORDG
FRPSDUWPHQWVKRXOGEHSODFHG ࿢ 'RQRWGULYHZLWKDQRSHQORDG
)RUVDIHW\UHDVRQVDQGWRDYRLG FRPSDUWPHQW
GDPDJHWRWKHURRIWKHYHKLFOH DJDLQVWWKHVHDWEDFNUHVWV(QVXUH
DSSURYHGURRIUDFNV\VWHPLV WKDWWKHEDFNUHVWVDUHVHFXUHO\ ࿢ 7KHSD\ORDGLVWKHGLIIHUHQFH
UHFRPPHQGHG HQJDJHG,IREMHFWVFDQEHVWDFNHG EHWZHHQWKHSHUPLWWHGJURVV
KHDYLHUREMHFWVVKRXOGEHSODFHGDW YHKLFOHZHLJKW VHHLGHQWLILFDWLRQ
,I\RXWU\WRFDUU\VRPHWKLQJRQWRSRI WKHERWWRP SODWH  DQGWKHNHUEZHLJKW
\RXUYHKLFOHWKDWLVORQJHURUZLGHU )RUWKHNHUEZHLJKWLQGHWDLOUHIHU
WKDQWKHURRIUDFNWKHZLQGFDQFDWFK ࿢ 6HFXUHREMHFWVLQORDG
FRPSDUWPHQWWRSUHYHQWVOLGLQJ WRWKHWHFKQLFDOGDWDVHFWLRQ
LWDV\RXGULYHDORQJ7KLVFDQFDXVH
\RXWRORVHFRQWURO:KDW\RXDUH ࿢ :KHQWUDQVSRUWLQJREMHFWVLQWKH 7KHNHUEZHLJKWLQFOXGHVZHLJKWV
FDUU\LQJFRXOGEHYLROHQWO\WRUQRII ORDGFRPSDUWPHQWWKHEDFNUHVWVRI IRUWKHGULYHU NJ OXJJDJH
DQGWKLVFRXOGFDXVH\RXRURWKHU WKHUHDUVHDWVPXVWQRWEHDQJOHG NJ DQGDOOIOXLGV WDQNIXOO 
GULYHUVWRKDYHDFROOLVLRQDQGRI IRUZDUG 2SWLRQDOHTXLSPHQWDQG
FRXUVHGDPDJH\RXUYHKLFOH1HYHU ࿢ 'RQRWDOORZWKHORDGWRSURWUXGH DFFHVVRULHVLQFUHDVHWKHNHUE
FDUU\VRPHWKLQJORQJHURUZLGHUWKDQ DERYHWKHXSSHUHGJHRIWKH ZHLJKW
WKHURRIUDFNRQWRSRI\RXUYHKLFOH EDFNUHVWV ࿢ 'ULYLQJZLWKDURRIORDGLQFUHDVHV
7KHPD[LPXPORDG LQFOXGHURRIXWLOLW\ ࿢ 'RQRWSODFHDQ\REMHFWVRQWKH WKHVHQVLWLYLW\RIWKHYHKLFOHWR
EDU
VZHLJKW IRUWKHURRIUDFNUDLOVLV ORDGFRPSDUWPHQWFRYHURUWKH FURVVZLQGVDQGKDVDGHWULPHQWDO
NJLQWKHYHKLFOH'RQRWH[FHHG LQVWUXPHQWSDQHODQGGRQRWFRYHU HIIHFWRQYHKLFOHKDQGOLQJGXHWR
WKHPD[LPXPYHKLFOHFDSDFLW\ZKHQ WKHVHQVRURQWRSRIWKHLQVWUXPHQW WKHYHKLFOH
VKLJKHUFHQWUHRI
ORDGLQJ\RXUYHKLFOH SDQHO JUDYLW\'LVWULEXWHWKHORDGHYHQO\
5HPRYHWKHURRIXWLOLW\EDURU DQGVHFXUHLWSURSHUO\ZLWKUHWDLQLQJ
࿢ 7KHORDGPXVWQRWREVWUXFWWKH
OXJJDJHLQWKHDXWRFDUZDVKLQJ VWUDSV$GMXVWWKHW\UHSUHVVXUHDQG
RSHUDWLRQRIWKHSHGDOVSDUNLQJ
IDFLOLW\LQFDVHRIWKHUHDUHURRIXWLOLW\ YHKLFOHVSHHGDFFRUGLQJWRWKHORDG
EUDNHDQGJHDUVHOHFWRUOHYHURU
EDURUOXJJDJHRQWKHURRIUDFN FRQGLWLRQV&KHFNDQGUHWLJKWHQWKH
VWUDSVIUHTXHQWO\
,QVWUXPHQWVDQGFRQWUROV 

,QVWUXPHQWVDQG &RQWUROV &DXWLRQ


FRQWUROV 6WHHULQJZKHHODGMXVWPHQW ,IVWURQJLPSDFWGHOLYHUVWR
VWHHULQJFROXPQD[OHGLUHFWLRQ
ZKHQWKHVWHHULQJZKHHOLV
&RQWUROV   DGMXVWHGRUWKHOHYHULVORFNHGLW
:DUQLQJOLJKWVJDXJHVDQG PD\FDXVHGDPDJHWRWKHSDUWV
LQGLFDWRUV   UHODWHGWRVWHHULQJZKHHO
7ULSFRPSXWHU  
6WHHULQJZKHHOFRQWUROV

8QORFNOHYHUDGMXVWVWHHULQJZKHHO
WKHQHQJDJHOHYHUDQGHQVXUHLWLV
IXOO\ORFNHG
'RQRWDGMXVWVWHHULQJZKHHOXQOHVV
YHKLFOHLVVWDWLRQDU\DQGVWHHULQJ
ZKHHOORFNKDVEHHQUHOHDVHG

7KH,QIRWDLQPHQWV\VWHPFDQEH
RSHUDWHGE\WKHFRQWUROVRQWKH
VWHHULQJZKHHO
)XUWKHULQIRUPDWLRQLVDYDLODEOHLQWKH
,QIRWDLQPHQWV\VWHPPDQXDO
 ,QVWUXPHQWVDQGFRQWUROV

+RUQ :LQGVFUHHQZLSHUZDVKHU )RUDVLQJOHZLSHZKHQWKH


ZLQGVVFUHHQZLSHUVDUHRIIOLJKWO\
:LQGVFUHHQZLSHU PRYHWKHZLQGVFUHHQZLSHUOHYHU
WRZDUGWKH,17SRVLWLRQDQGUHOHDVHLW
7KHOHYHUZLOOUHWXUQDXWRPDWLFDOO\WR
LWVQRUPDOSRVLWLRQZKHQUHOHDVHG
7KHZLSHUVZLOORSHUDWHWKURXJKRQH
F\FOH
0LVWLQJIXQFWLRQ
7RRSHUDWHWKHZLQGVFUHHQZLSHUV
RQFHLQFDVHRIOLJKWUDLQRUPLVW
OLJKWO\PRYHWKHZLQGVFUHHQZLSHU
ZDVKHUOHYHUWRZDUGWKH,,17SRVLWLRQ
DQGUHOHDVHLW7KHOHYHUZLOOUHWXUQ
3UHVVH DXWRPDWLFDOO\WRLWVQRUPDOSRVLWLRQ
ZKHQUHOHDVHG7KHZLSHUVZLOO
7RRSHUDWHWKHZLQGVFUHHQZLSHUV RSHUDWHWKURXJKRQHF\FOH
WXUQWKHLJQLWLRQ21DQGPRYHWKH
ZLQGVFUHHQZLSHUZDVKHUOHYHU
XSZDUG
2)) 6\VWHPRII
,17 ,QWHUPLWWHQWRSHUDWLRQ
/2 &RQWLQXRXVZLSHVORZ
VSHHG
+, &RQWLQXRXVZLSHIDVW
VSHHG
,QVWUXPHQWVDQGFRQWUROV 

&DXWLRQ
:LQGVFUHHQZDVKHU
 :DUQLQJ
/HVVWKDQFOHDUYLVLRQIRUWKHGULYHU 'RQRWVSUD\ZDVKHUIOXLGRQWKH
FDQOHDGWRDQDFFLGHQWUHVXOWLQJLQ ZLQGVFUHHQLQIUHH]LQJZHDWKHU
SHUVRQDOLQMXU\DQGGDPDJHWR 8VLQJZDVKHUIOXLGDQGZLSHUVLQ
\RXUYHKLFOHRURWKHUSURSHUW\ IUHH]LQJZHDWKHUPD\FDXVHDQ
'RQRWRSHUDWHWKHZLQGVFUHHQ DFFLGHQWEHFDXVHWKHZDVKHUIOXLG
ZLSHUVZKHQWKHZLQGVFUHHQLVGU\ FDQIRUPLFHRQDIUR]HQ
RUREVWUXFWHGDVZLWKVQRZRULFH ZLQGVFUHHQDQGREVWUXFW\RXU
8VLQJWKHZLSHUVRQDQREVWUXFWHG YLVLRQ
ZLQGVFUHHQFDQGDPDJHWKHZLSHU
EODGHVZLSHUPRWRUDQGJODVV 5HDUZLQGRZZLSHUZDVKHU
&KHFNEODGHVDUHQRWIUR]HQWR
ZLQGRZVEHIRUHRSHUDWLQJLQFROG 3XOOOHYHU:DVKHUIOXLGLVVSUD\HG
ZHDWKHU:LSHURSHUDWLRQZKLOH RQWRWKHZLQGVFUHHQDQGWKHZLSHU
EODGHLVIUR]HQFDQGDPDJHZLSHU ZLSHVDIHZWLPHV
PRWRU
&DXWLRQ
'RQRWRSHUDWHWKHZLQGVFUHHQ
ZDVKHUFRQWLQXRXVO\IRUPRUHWKDQ
VRPHVHFRQGVRUZKHQWKH
ZDVKHUIOXLGWDQNLVHPSW\7KLV
FDQFDXVHWKHZDVKHUPRWRUWR
RYHUKHDWUHVXOWLQJLQFRVWO\
UHSDLUV 7RRSHUDWHWKHUHDUZLSHUDQG
ZDVKHUSXVKWKHOHYHUWRZDUGWKH
LQVWUXPHQWSDQHO3XVKRQFHWKH
 ,QVWUXPHQWVDQGFRQWUROV

ZLSHUZLOORSHUDWHFRQWLQXRXVO\DW 6HWWLPH
VORZVSHHG7RVSUD\ZDVKHUIOXLG &DXWLRQ
3XVKWKH&&/2&.EXWWRQRIWKHFOXVWHU
SXVKWKHOHYHURQFHPRUH IRUPRUHWKDQVHFRQG:KHQWKH
'RQRWRSHUDWHWKHZLQGVFUHHQ
ZDVKHUFRQWLQXRXVO\IRUPRUHWKDQ KRXUGLVSOD\IODVKHVDGMXVWWKH
&DXWLRQ FXUUHQWKRXUXVLQJWKH&&/2&.EXWWRQ
VRPHVHFRQGVRUZKHQWKH
ZDVKHUIOXLGWDQNLVHPSW\7KLV $IWHUDSSUR[LPDWHO\VHFRQGWKH
/HVVWKDQFOHDUYLVLRQIRUWKHGULYHU
FDQFDXVHWKHZDVKHUPRWRUWR PLQXWHGLVSOD\ZLOOIODVKDXWRPDWLFDOO\
FDQOHDGWRDQDFFLGHQWUHVXOWLQJLQ
RYHUKHDWUHVXOWLQJLQFRVWO\ WKHQDGMXVWWKHFXUUHQWPLQXWHXVLQJ
SHUVRQDOLQMXU\DQGGDPDJHWR
UHSDLUV WKH&&/2&.EXWWRQ7KHVHWWLQJZLOOEH
\RXUYHKLFOHRURWKHUSURSHUW\
ILQLVKHGZLWKRXWDQ\RSHUDWLRQDIHZ
'RQRWRSHUDWHWKHUHDUZLQGRZ VHFRQGVDIWHUDGMXVWLQJ
ZLSHUZKHQWKHWDLOJDWHZLQGRZLV &ORFN
GU\RUREVWUXFWHGDVZLWKVQRZRU
LFH 3RZHURXWOHWV
8VLQJWKHZLSHURQDQREVWUXFWHG
ZLQGRZFDQGDPDJHWKHZLSHU
EODGHVZLSHUPRWRUDQGJODVV
&KHFNEODGHLVQRWIUR]HQWR
ZLQGRZEHIRUHRSHUDWLQJLQFROG
ZHDWKHUWRSUHYHQWGDPDJHWRWKH
ZLSHUPRWRU
$WIUHH]LQJWHPSHUDWXUHGRQRW
VSUD\ZDVKHUIOXLGRQWKHUHDU
ZLQGRZXQWLOLWLVZDUP
:DVKHUIOXLGFDQIRUPLFHRQ 7LPHLVVKRZQLQWKHFOXVWHU
DIUR]HQWDLOJDWHZLQGRZDQG
REVWUXFW\RXUYLVLRQ $9ROWSRZHURXWOHWLVORFDWHGLQWKH
IURQWFRQVROH
,QVWUXPHQWVDQGFRQWUROV 

'RQRWH[FHHGWKHPD[LPXPSRZHU 7RRSHUDWHWKHFLJDUHWWHOLJKWHUWXUQ
FRQVXPSWLRQRI:DWWV WKHLJQLWLRQVZLWFKWR$&&RU21DQG  :DUQLQJ
:LWKLJQLWLRQRIIWKHSRZHURXWOHWVDUH SXVKWKHOLJKWHULQDOOWKHZD\
,I\RXOHDYHWKHYHKLFOHZLWKDQ
GHDFWLYDWHG 7KHFLJDUHWWHOLJKWHUZLOOSRSRXW LQIODPPDEOHH[SORVLYHVXEVWDQFH
$GGLWLRQDOO\WKHSRZHURXWOHWVDUH DXWRPDWLFDOO\ZKHQLWLVUHDG\WRXVH VXFKDVDGLVSRVDEOHOLJKWHU
GHDFWLYDWHGLQWKHHYHQWRIORZEDWWHU\ LQVLGHWKHFDULQVXPPHULWFDQ
YROWDJH &DXWLRQ H[SORGHDQGFDXVHILUHGXHWRDQ
'RQRWFRQQHFWDQ\FXUUHQWGHOLYHULQJ LQFUHDVHRIWHPSHUDWXUHLQWKH
2YHUKHDWLQJWKHFLJDUHWWHOLJKWHU SDVVHQJHUFRPSDUWPHQWDQGWKH
DFFHVVRULHVHJHOHFWULFDOFKDUJLQJ
FDQGDPDJHWKHKHDWLQJHOHPHQW ERRW3OHDVHHQVXUHWKDWQR
GHYLFHVRUEDWWHULHV
DQGWKHOLJKWHULWVHOI LQIODPPDEOHH[SORVLYH
'RQRWGDPDJHWKHRXWOHWE\XVLQJ VXEVWDQFHVDUHOHIWRUNHSWLQVLGH
'RQRWSUHVVWKHOLJKWHUZKLOHLWLV
XQVXLWDEOHSOXJV WKHFDU
KHDWLQJ7KLVFDQFDXVHWKHOLJKWHU
WRRYHUKHDW
&LJDUHWWHOLJKWHU 7U\LQJWRRSHUDWHDPDOIXQFWLRQLQJ &DXWLRQ
FLJDUHWWHOLJKWHUFDQEH
GDQJHURXV,IWKHKHDWHGFLJDUHWWH 7KHFLJDUHWWHVRFNHWVKRXOGRQO\
OLJKWHUGRHVQRWSRSRXWZLWKLQ EHXVHGZLWKWKHFLJDUHWWHOLJKWHU
VHFRQGVSXOOLWRXWDQGFRQVXOW ,IRWKHU9SRZHUDGDSWHUVDUH
DZRUNVKRSWRKDYHLWUHSDLUHG,W LQVWDOOHGLQWRWKHFLJDUHWWHVRFNHW
FDQFDXVHLQMXULHVDQGGDPDJHWR IXVHIDLOXUHRUDSRWHQWLDOWKHUPDO
\RXUYHKLFOH:HUHFRPPHQGWKDW LQFLGHQWPD\RFFXU
\RXFRQVXOW\RXUDXWKRULVHG
ZRUNVKRS
 ,QVWUXPHQWVDQGFRQWUROV

&DXWLRQ &DXWLRQ :DUQLQJOLJKWVJDXJHV


DQGLQGLFDWRUV
7KHEDUUHORIDQRSHUDWLQJ &LJDUHWWHVDQGRWKHUVPRNLQJ
FLJDUHWWHOLJKWHUFDQEHFRPHYHU\ PDWHULDOVFRXOGVHWWKHPRQILUH 6SHHGRPHWHU
KRW 'RQRWSXWSDSHURURWKHU
'RQRWWRXFKWKHEDUUHORIWKH IODPPDEOHLWHPVLQWKHDVKWUD\
FLJDUHWWHOLJKWHUDQGGRQRWDOORZ $QDVKWUD\ILUHFDQOHDGWR
FKLOGUHQWRRSHUDWHRUSOD\ZLWKWKH SHUVRQDOLQMXU\RUGDPDJHWR\RXU
FLJDUHWWHOLJKWHU YHKLFOHRURWKHUSURSHUW\
7KHKRWPHWDOFDQFDXVHSHUVRQDO
LQMXULHVDQGGDPDJHWR\RXU 7KHSRUWDEOHDVKWUD\FDQEHSODFHGLQ
YHKLFOHRURWKHUSURSHUW\ WKHFXSKROGHUV
7RRSHQWKHDVKWUD\JHQWO\OLIWWKHOLG
$VKWUD\V RIWKHDVKWUD\$IWHUXVLQJFORVHWKH
OLGILUPO\
7RHPSW\WKHDVKWUD\IRUFOHDQLQJ
VOLJKWO\URWDWHWKHXSSHUSDUWRIWKH ,QGLFDWHVYHKLFOHVSHHG
DVKWUD\FRXQWHUFORFNZLVHDQG
UHPRYHLW
,QVWUXPHQWVDQGFRQWUROV 

2GRPHWHU 7DFKRPHWHU )XHOJDXJH

7KHRGRPHWHUVKRZVKRZIDU\RXUFDU 'LVSOD\VWKHHQJLQHUHYROXWLRQVSHU 'LVSOD\VWKHIXHOOHYHOLQWKHWDQN


KDVEHHQGULYHQLQNLORPHWUHVRU PLQXWH 1HYHUUXQWKHWDQNGU\
PLOHV 'ULYHLQDORZHQJLQHVSHHGUDQJHIRU %HFDXVHRIWKHIXHOUHPDLQLQJLQWKH
7KHUHDUHWZRLQGHSHQGHQW HDFKJHDUDVPXFKDVSRVVLEOH WDQNWKHWRSXSTXDQWLW\PD\EHOHVV
WULSRGRPHWHUVZKLFKPHDVXUHWKH WKDQWKHVSHFLILHGWDQNFDSDFLW\
GLVWDQFHV\RXUYHKLFOHKDVWUDYHOOHG
VLQFH\RXODVWUHVHWWKLVIXQFWLRQ 0RYHPHQWRIWKHIXHOZLWKLQWKHIXHO
WDQNFDXVHVWKHIXHOJDXJHSRLQWHUWR
7KHRGRPHWHUWULS$DQGWULS%FDQEH PRYHZKHQ\RXEUDNHDFFHOHUDWHRU
VZLWFKHGE\SUHVVLQJWKH7 75,3 WXUQ
EXWWRQ
1RWH
7RUHVHWHDFKWULSRGRPHWUHWR]HUR
SUHVVWKH75,3EXWWRQRIWKHFOXVWHU
PRUHWKDQVHFRQGV
 ,QVWUXPHQWVDQGFRQWUROV

 'DQJHU
%HIRUHUHIXHOOLQJVWRSYHKLFOHDQG
VZLWFKRIIWKHHQJLQH

&RQWUROLQGLFDWRUV
7KHFRQWUROLQGLFDWRUVGHVFULEHGDUH
QRWSUHVHQWLQDOOYHKLFOHV7KH
GHVFULSWLRQDSSOLHVWRDOOLQVWUXPHQW
YHUVLRQV:KHQWKHLJQLWLRQLV
VZLWFKHGRQPRVWFRQWUROLQGLFDWRUV
ZLOOLOOXPLQDWHEULHIO\DVDIXQFWLRQDOLW\
WHVW
7KHFRQWUROLQGLFDWRUFRORXUVPHDQ
UHG GDQJHULPSRUWDQW
UHPLQGHU
\HOORZ ZDUQLQJLQIRUPDWLRQIDXOW
JUHHQ FRQILUPDWLRQRIDFWLYDWLRQ
EOXH FRQILUPDWLRQRIDFWLYDWLRQ
,QVWUXPHQWVDQGFRQWUROV 

&RQWUROLQGLFDWRUVLQWKHLQVWUXPHQWFOXVWHU
 ,QVWUXPHQWVDQGFRQWUROV

&RQWUROLQGLFDWRUVLQWKHFHQWUH 6HDWEHOWUHPLQGHU 6HDWEHOWVWDWXVRQUHDUVHDWV


FRQVROH 7IRUUHDUVHDWVLOOXPLQDWHVRUIODVKHV
6HDWEHOWUHPLQGHURQIURQW UHG
VHDWV  :KHQHQJLQHLVUXQQLQJZLWKDOO
7IRUGULYHU
VVHDWLOOXPLQDWHVRU GRRUVFORVHGDQGWKHYHKLFOH
IODVKHVUHG VSHHGLVOHVVWKDQNPKWKH
CIRUIURQWSDVVHQJHUVHDWLOOXPLQDWHV UHDUVHDWEHOWLQGLFDWRUVLOOXPLQDWH
RUIODVKHVUHGZKHQVHDWLVRFFXSLHG XQWLOWKHEHOWVDUHIDVWHQHG,Q
FDVHWKDWQRERG\RFFXSLHVRQWKH
 $IWHUWKHLJQLWLRQKDVEHHQ VHDWVWKLVEHKDYLRULVVWLOODSSOLHG
VZLWFKHG21WKHFRQWUROLQGLFDWRU
LOOXPLQDWHVXQWLOWKHVHDWEHOWLV  ,IWKHYHKLFOHVSHHGLVRYHU
IDVWHQHG NPKZLWKDOOGRRUVFORVHG
XQIDVWHQHGUHDUVHDWEHOW
 $IWHUWKHHQJLQHLVUXQQLQJWKH LQGLFDWRUVZLOOLOOXPLQDWHIRU
FRQWUROLQGLFDWRUIODVKHVIRU VHFRQGVDQGJRRIIUHJDUGOHVV
VHFRQGVDQGWKHQLOOXPLQDWHV RIRFFXSDQF\RIWKHUHDUVHDWV,I
7XUQVLJQDO XQWLOWKHVHDWEHOWLVIDVWHQHG DUHDUVHDWEHOWEHFRPHV
.IODVKHVJUHHQ  ,IWKHYHKLFOHPRYHVPRUHWKDQ IDVWHQHGWKHRWKHUXQIDVWHQHG
PRUWKHVSHHGLVRYHU EHOWLQGLFDWRUZLOOLOOXPLQDWHDJDLQ
)ODVKHV NPKZLWKXQIDVWHQHGVHDWEHOW IRUVHFRQGVDQGJRRII
7KHFRQWUROLQGLFDWRUIODVKHVLIDWXUQ WKHFRQWUROLQGLFDWRUZLOOIODVKDQG  ,IDQ\UHDUVHDWEHOWVWDWXV
VLJQDORUWKHKD]DUGZDUQLQJIODVKHUV WKHFKLPHZLOOVRXQGIRU FKDQJHVIURPIDVWHQHGWR
DUHDFWLYDWHG VHFRQGV XQIDVWHQHGZKHQWKHYHKLFOH
5DSLGIODVKLQJIDLOXUHRIDWXUQVLJQDO $IWHUVHFRQGVWKHLQGLFDWRUZLOO VSHHGLVRYHUNPKDQGDOO
OLJKWRUDVVRFLDWHGIXVH LOOXPLQDWHXQWLOWKHVHDWEHOWLV GRRUVFORVHGWKHEHOWLQGLFDWRUZLOO
%XOEUHSODFHPHQW )XVHV IDVWHQHGDQGWKHFKLPHZLOOJRRII IODVKXQWLOWKHVHDWEHOWLVIDVWHQHG
7XUQVLJQDOV  DQGDFKLPHZLOOVRXQGWLPHV
7KUHHSRLQWVHDWEHOW 
,QVWUXPHQWVDQGFRQWUROV 

$LUEDJDQGEHOWWHQVLRQHUV :KHQWKHFRQWUROLQGLFDWRULOOXPLQDWHV ,WLOOXPLQDWHVZKHQWKHLJQLWLRQLV


WKHIURQWSDVVHQJHUDLUEDJLV VZLWFKHGRQDQGJRHVRXWVKRUWO\DIWHU
TLOOXPLQDWHVUHG DFWLYDWHG WKHHQJLQHVWDUWV
:KHQWKHLJQLWLRQLVVZLWFKHGRQWKH FLOOXPLQDWHV\HOORZ
FRQWUROLQGLFDWRULOOXPLQDWHVIRUDIHZ
VHFRQGV,ILWGRHVQRWLOOXPLQDWH :KHQWKHFRQWUROLQGLFDWRULOOXPLQDWHV %UDNHV\VWHP
GRHVQRWJRRXWDIWHUDIHZVHFRQGV WKHIURQWSDVVHQJHUDLUEDJLV LOOXPLQDWHVUHG
RULOOXPLQDWHVZKLOVWGULYLQJWKHUHLV GHDFWLYDWHG
,OOXPLQDWHVZKHQWKHSDUNLQJEUDNHLV
DIDXOWLQWKHDLUEDJV\VWHP6HHNWKH $LUEDJGHDFWLYDWLRQ  UHOHDVHGLIWKHEUDNHDQGFOXWFKIOXLG
DVVLVWDQFHRIDZRUNVKRS7KH OHYHOLVWRRORZRULIWKHUHLVDEUDNH
V\VWHPVPD\IDLOWRWULJJHULQWKH V\VWHPIDXOW%UDNHIOXLG 
HYHQWRIDQDFFLGHQW
&KDUJLQJV\VWHP
9HKLFOHWURXEOHRUGHSOR\PHQWRIWKH NLOOXPLQDWHVUHG
 :DUQLQJ
EHOWSUHWHQVLRQHUVRUDLUEDJVLV ,WLOOXPLQDWHVZKHQWKHLJQLWLRQLV
LQGLFDWHGE\FRQWLQXRXVLOOXPLQDWLRQ VZLWFKHGRQDQGJRHVRXWVKRUWO\DIWHU 'RQRWGULYHZLWKWKHEUDNHV\VWHP
RIT WKHHQJLQHVWDUWV ZDUQLQJOLJKWRQ
7KLVPD\PHDQ\RXUEUDNHVDUH
 :DUQLQJ ,OOXPLQDWHVZKHQWKHHQJLQHLV
QRWZRUNLQJSURSHUO\
UXQQLQJ
+DYHWKHFDXVHRIWKHIDXOW 6WRSVZLWFKRIIHQJLQH%DWWHU\LVQRW 'ULYLQJZLWKPDOIXQFWLRQLQJEUDNHV
UHPHGLHGLPPHGLDWHO\E\ FKDUJLQJ(QJLQHFRROLQJPD\EH FDQOHDGWRDFROOLVLRQUHVXOWLQJLQ
DZRUNVKRS LQWHUUXSWHG6HHNWKHDVVLVWDQFHRI SHUVRQDOLQMXULHVDQGGDPDJHWR
DZRUNVKRS \RXUYHKLFOHDQGRWKHUSURSHUW\
%HOWSUHWHQVLRQHUVDLUEDJV\VWHP
  ,OOXPLQDWHVDIWHUWKHLJQLWLRQLV
0DOIXQFWLRQLQGLFDWRUOLJKW VZLWFKHGRQLIWKHPDQXDOSDUNLQJ
9LOOXPLQDWHVRUIODVKHV\HOORZ EUDNHLVDSSOLHG3DUNLQJEUDNH
$LUEDJGHDFWLYDWLRQ 
GLOOXPLQDWHV\HOORZ
 ,QVWUXPHQWVDQGFRQWUROV

$QWLORFNEUDNHV\VWHP &DXWLRQ
,OOXPLQDWHV
$%6 $IDXOWLQWKHV\VWHPLVSUHVHQW
,ILWGRHVQRWFRPHRQRULILWGRHV &RQWLQXHGGULYLQJLVSRVVLEOH'ULYLQJ
SLOOXPLQDWHV\HOORZ VWDELOLW\KRZHYHUPD\GHWHULRUDWH
QRWJRRXWDIWHUDERXWVHFRQGV
,OOXPLQDWHVIRUDIHZVHFRQGVDIWHUWKH RULILWFRPHVRQZKLOHGULYLQJLW GHSHQGLQJRQURDGVXUIDFH
LJQLWLRQLVVZLWFKHGRQ7KHV\VWHPLV PHDQVWKDWWKHUHLVPDOIXQFWLRQLQ FRQGLWLRQV
UHDG\IRURSHUDWLRQZKHQWKHFRQWURO WKHV\VWHP +DYHWKHFDXVHRIWKHIDXOWUHPHGLHG
LQGLFDWRUJRHVRXW E\DZRUNVKRS
&RQVXOWDZRUNVKRSWRUHSDLUWKH
,IWKHFRQWUROLQGLFDWRUGRHVQRWJRRXW SUREOHPDVVRRQDVSRVVLEOH:H
DIWHUDIHZVHFRQGVRULILWLOOXPLQDWHV UHFRPPHQG\RXUDXWKRULVHG )ODVKHV
ZKLOHGULYLQJWKHUHLVDIDXOWLQWKH &KHYUROHWZRUNVKRS 7KHV\VWHPLVDFWLYHO\HQJDJHG
$%67KHEUDNHV\VWHPUHPDLQV (QJLQHRXWSXWPD\EHUHGXFHGDQG
RSHUDWLRQDOEXWZLWKRXW$%6 WKHYHKLFOHPD\EHEUDNHG
UHJXODWLRQ 2YHUGULYHRII DXWRPDWLFDOO\WRDVPDOOGHJUHH
$QWLORFNEUDNHV\VWHP  ;LOOXPLQDWHV\HOORZ (OHFWURQLF6WDELOLW\&RQWURO 
7KLVLQGLFDWRUFRPHVRQZKHQWKH
RYHUGULYHIXQFWLRQLVFDQFHOOHG
7UDQVPLVVLRQ (OHFWURQLF6WDELOLW\&RQWURO
3UHVVLQJWKHRYHUGULYHEXWWRQRQWKH
VLGHRIWKHVHOHFWRUOHYHUNQREDJDLQ RII
7UDQVPLVVLRQGLVSOD\
$7LOOXPLQDWHVUHG ZLOOPDNHWKHRYHUGULYH2))LQGLFDWRU DIODVKHV\HOORZ
JRRIIDQGDFWLYDWHWKHRYHUGULYH 7KHV\VWHPLVGHDFWLYDWHG
:KHQWKHLJQLWLRQLVVZLWFKHGRQLW IXQFWLRQ
LOOXPLQDWHVIRUDSSUR[LPDWHO\
VHFRQGVDQGVKRXOGJRRXWWR (QJLQHFRRODQW
FRQILUPWKDWWKHDXWRPDWLF (OHFWURQLF6WDELOLW\&RQWURO WHPSHUDWXUH
WUDQVPLVVLRQLVRSHUDWLRQDO ELOOXPLQDWHVRUIODVKHV\HOORZ
6LOOXPLQDWHVUHG
,QVWUXPHQWVDQGFRQWUROV 

7KLVOLJKWWHOOV\RXWKDWWKHHQJLQH ,OOXPLQDWHVZKHQWKHHQJLQHLV /RZIXHO


FRRODQWKDVRYHUKHDWHG UXQQLQJ 8LOOXPLQDWHV\HOORZ
,I\RXKDYHEHHQRSHUDWLQJ\RXU
YHKLFOHXQGHUQRUPDOGULYLQJ &DXWLRQ ,OOXPLQDWHVZKHQOHYHOLQIXHOWDQNLV
FRQGLWLRQV\RXVKRXOGSXOORIIWKH WRRORZ
URDGVWRS\RXUYHKLFOHDQGOHWWKH (QJLQHOXEULFDWLRQPD\EH
HQJLQHLGOHIRUDIHZPLQXWHV LQWHUUXSWHG7KLVPD\UHVXOWLQ &DXWLRQ
,IWKHOLJKWGRHVQRWJRRXW\RXVKRXOG GDPDJHWRWKHHQJLQHDQGRU
ORFNLQJRIWKHGULYHZKHHOV 'RQRWOHW\RXUYHKLFOHUXQRXWRI
VZLWFKWKHHQJLQHRIIDQGFRQVXOW
IXHO
DZRUNVKRSDVVRRQDVSRVVLEOH:H
UHFRPPHQGWKDW\RXFRQVXOW\RXU ,IWKHHQJLQHRLOSUHVVXUHZDUQLQJOLJKW 7KLVFDQGDPDJHWKHFDWDO\WLF
DXWKRULVHGZRUNVKRS FRPHVRQZKLOHGULYLQJ3XOORIIWKH FRQYHUWHU
URDGVWRSWKHHQJLQHDQGFKHFNWKH
RLOOHYHO &DWDO\WLFFRQYHUWHU 
(QJLQHRLOSUHVVXUH
(LOOXPLQDWHVUHG  :DUQLQJ +LJKEHDP
,WLOOXPLQDWHVZKHQWKHLJQLWLRQLV
:KHQWKHHQJLQHLVRII !LOOXPLQDWHVEOXH
VZLWFKHGRQDQGJRHVRXWVKRUWO\DIWHU
WKHHQJLQHVWDUWV FRQVLGHUDEO\PRUHIRUFHLVQHHGHG ,OOXPLQDWHGZKHQKLJKEHDPLVRQDQG
WREUDNHDQGVWHHU GXULQJKHDGOLJKWIODVK+LJKEHDP
'RQRWUHPRYHNH\XQWLOYHKLFOHLV ORZEHDP 
VWDWLRQDU\RWKHUZLVHWKHVWHHULQJ
ZKHHOORFNFRXOGHQJDJH )RJOLJKW
XQH[SHFWHGO\
LOOXPLQDWHVJUHHQ
&KHFNRLOOHYHOEHIRUHVHHNLQJWKH ,OOXPLQDWHGZKHQWKHIURQWIRJOLJKWV
DVVLVWDQFHRIDZRUNVKRS(QJLQHRLO DUHRQ 

 ,QVWUXPHQWVDQGFRQWUROV

5HDUIRJOLJKW 7ULSFRPSXWHU 'ULYLQJGLVWDQFHIRUUHPDLQLQJ


PLOOXPLQDWHV\HOORZ IXHO
,OOXPLQDWHGZKHQWKHUHDUIRJOLJKWLV
RQ 

'RRURSHQ
ELOOXPLQDWHVUHG
,WLOOXPLQDWHVZKHQDGRRURUWKH
WDLOJDWHLVRSHQ

7KHWULSFRPSXWHUSURYLGHVWKHGULYHU 7KLVPRGHLQGLFDWHVWKHHVWLPDWHG
ZLWKGULYLQJLQIRUPDWLRQVXFKDV GULYLQJGLVWDQFHWRHPSW\IURPWKH
GULYLQJGLVWDQFHIRUUHPDLQLQJIXHO FXUUHQWIXHOLQWKHIXHOWDQN
DPELHQWWHPSHUDWXUHDYHUDJHVSHHG 7KHGLVWDQFHUDQJHLVaNP
DQGGULYLQJWLPH
7KHWULSFRPSXWHULVDEOHWRUHJLVWHU
(DFKWLPH\RXSUHVVWKH0 02'( WKHUHILOOHGIXHORIDWOHDVWOLWHUVRU
EXWWRQRIWKHFOXVWHUWKHGLVSOD\ PRUH
FKDQJHVLQWKHIROORZLQJRUGHU
,I\RXUHIXHOZLWKWKHEDWWHU\
'ULYLQJGLVWDQFHIRUUHPDLQLQJIXHOඎ GLVFRQQHFWHGRUWKHYHKLFOHWLOWHGWKH
$YHUDJHVSHHGඎ'ULYLQJWLPHඎ WULSFRPSXWHUPLJKWQRWVKRZWKH
$PELHQWWHPSHUDWXUHඎ'ULYLQJ FRUUHFWYDOXHV
GLVWDQFHIRUUHPDLQLQJIXHO
,QVWUXPHQWVDQGFRQWUROV 

:KHQWKHGULYLQJGLVWDQFHIRU $YHUDJHVSHHG 'ULYLQJWLPH


UHPDLQLQJIXHOLVOHVVWKDQWRNP
ZLOOEHGLVSOD\HGDQGIODVKHG
7KHGLVWDQFHFDQEHGLIIHUHQW
GHSHQGLQJRQGULYLQJSDWWHUQV
1RWH
$VDQDX[LOLDU\GHYLFHWKHWULS
FRPSXWHUPD\KDYHGLIIHUHQFHVZLWK
WKHDFWXDOGLVWDQFHIRUUHPDLQLQJ
IXHODFFRUGLQJWRFLUFXPVWDQFHV
7KHGULYLQJGLVWDQFHIRUUHPDLQLQJ
IXHOFDQEHFKDQJHGE\WKHGULYHU
WKHURDGDQGWKHYHKLFOHVSHHG
EHFDXVHLWLVFDOFXODWHGDFFRUGLQJWR 7KLVPRGHLQGLFDWHVWKHDYHUDJH 7KLVPRGHLQGLFDWHVWKHWRWDOGULYLQJ
WKHFKDQJLQJIXHOHIILFLHQF\ VSHHG WLPH
7KHDYHUDJHVSHHGLVDFFXPXODWHG 7RUHVHWWKHGULYLQJWLPHWR]HUR
ZKLOHWKHHQJLQHLVUXQQLQJHYHQLIWKH SUHVVWKH002'(EXWWRQIRUPRUHWKDQ
YHKLFOHLVQRWGULYHQ VHFRQG
7KHDYHUDJHVSHHGUDQJHLV 7KHGULYLQJWLPHLVDFFXPXODWHGZKLOH
aNPK WKHHQJLQHLVUXQQLQJHYHQLIWKH
7RUHVHWWKHDYHUDJHVSHHGWR]HUR YHKLFOHLVQRWGULYHQ
SUHVVWKH002'(EXWWRQIRUPRUHWKDQ 7KHGULYLQJWLPHZLOOEHLQLWLDOL]HGWR
VHFRQG DIWHUEHLQJGLVSOD\HGWR
 ,QVWUXPHQWVDQGFRQWUROV

$PELHQWWHPSHUDWXUH 1RWH
7KHGULYLQJGLVWDQFHIRUUHPDLQLQJ
IXHODYHUDJHVSHHGDQGDPELHQW
WHPSHUDWXUHFDQGLIIHUIURPWKH
DFWXDOGLVWDQFHDFFRUGLQJWRGULYLQJ
FRQGLWLRQVGULYLQJSDWWHUQRUYHKLFOH
VSHHG

7KLVPRGHLQGLFDWHVWKHRXWVLGH
WHPSHUDWXUH
7KHWHPSHUDWXUHUDQJHLVa¡&
7KHDPELHQWWHPSHUDWXUHLVQRW
FKDQJHGLPPHGLDWHO\DVDJHQHUDO
WKHUPRPHWHUEHFDXVHLWPD\FDXVH
FRQIXVLRQZKLOHGULYLQJ
7KHDPELHQWWHPSHUDWXUHFDQEH
GLIIHUHQWIURPWKHDFWXDOWHPSHUDWXUH
GXHWRGULYLQJFRQGLWLRQV
/LJKWLQJ 

([WHULRUOLJKWLQJ 7KHORZEHDPKHDGOLJKWVDQGDOO
/LJKWLQJ RIWKHDERYHOLJKWVDUHLOOXPLQDWHG
/LJKWVZLWFK 7KHKHDGOLJKWVZLOOWXUQRII
DXWRPDWLFDOO\ZKHQWKHGULYHU
VGRRU
([WHULRUOLJKWLQJ   ([WHULRUOLJKWFRQWUROV LVRSHQHGDIWHUWKHLJQLWLRQVZLWFKLV
,QWHULRUOLJKWLQJ   WXUQHGWR/2&.
/LJKWLQJIHDWXUHV  
+LJKEHDP

7RWXUQWKHKHDGDQGWDLOOLJKWVRQRU
RIIWZLVWWKHHQGRIWKHFRPELQDWLRQ
VZLWFKOHYHU7KHOLJKWVZLWFKKDV
WKUHHSRVLWLRQVZKLFKDFWLYDWHYDULRXV 7RVZLWFKIURPORZWRKLJKEHDP
OLJKWIXQFWLRQVDVIROORZV SXVKOHYHU
2))$OOWKHOLJKWVDUHRII 7RVZLWFKWRORZEHDPSXVKOHYHU
7KHWDLOOLJKWVQXPEHUSODWHOLJKWV DJDLQRUSXOO
DQGLQVWUXPHQWSDQHOOLJKWVDUH
LOOXPLQDWHG
 /LJKWLQJ

1RWH 7KHOHYHUZLOOUHWXUQWRLWVQRUPDO  DOOVHDWVRFFXSLHGDQGORDG


7KHKHDGOLJKWKLJKEHDPLQGLFDWRU SRVLWLRQZKHQ\RXUHOHDVHLW7KH FRPSDUWPHQWODGHQ
LOOXPLQDWHVZKHQWKHKHDGOLJKWVDUH KLJKEHDPKHDGOLJKWVZLOOVWD\RQDV  GULYHU
VVHDWRFFXSLHGDQGORDG
RQKLJKEHDP ORQJDV\RXKROGWKHFRPELQDWLRQ FRPSDUWPHQWODGHQ
VZLWFKOHYHUWRZDUG\RX
 :DUQLQJ +HDGOLJKWVZKHQGULYLQJ
$OZD\VVZLWFKWKHKLJKEHDP
+HDGOLJKWUDQJH DEURDG
KHDGOLJKWVWRORZEHDPZKHQ\RX DGMXVWPHQW 7KHDV\PPHWULFDOKHDGOLJKWEHDP
DSSURDFKRQFRPLQJYHKLFOHVRU H[WHQGVYLVLELOLW\DWWKHHGJHRIWKH
RWKHUYHKLFOHVDKHDG+LJKEHDP URDGDWWKHSDVVHQJHUVLGH
KHDGOLJKWVFDQWHPSRUDULO\GD]]OH
+RZHYHUZKHQGULYLQJLQFRXQWULHV
RWKHUGULYHUVZKLFKFRXOGUHVXOWLQ
ZKHUHWUDIILFGULYHVRQWKHRSSRVLWH
DFROOLVLRQ
VLGHRIWKHURDGDGMXVWWKHKHDGOLJKWV
WRSUHYHQWGD]]OLQJRIRQFRPLQJ
+HDGOLJKWIODVK WUDIILF
+DYHWKHKHDGOLJKWVDGMXVWHGE\
DZRUNVKRS

'D\WLPHUXQQLQJOLJKWV
7RDGDSWKHDGOLJKWUDQJHWRWKH 'D\WLPHUXQQLQJOLJKWLQFUHDVHV
YHKLFOHORDGWRSUHYHQWGD]]OLQJWXUQ YLVLELOLW\RIWKHYHKLFOHLQWKHGD\WLPH
NQREWRUHTXLUHGSRVLWLRQ 7DLOOLJKWVDUHQRWRQ
 IURQWVHDWVRFFXSLHG
 DOOVHDWVRFFXSLHG
/LJKWLQJ 

+D]DUGZDUQLQJIODVKHUV 7XUQDQGODQHFKDQJH )URQWIRJOLJKWV


VLJQDOV

2SHUDWHGZLWKWKHeEXWWRQ 7RWXUQRQWKHIRJOLJKWVPDNHVXUH
7RDFWLYDWHWKHKD]DUGZDUQLQJ OHYHUXS ULJKWLQGLFDWRU WKHORZEHDPKHDGOLJKWVDUHRQ
IODVKHUVSXVKWKHEXWWRQ OHYHUGRZQ OHIWLQGLFDWRU 7XUQWKHULQJRQWKHPLGGOHRIWKH
7RWXUQRIIWKHIODVKHUVSXVKWKH FRPELQDWLRQVZLWFKOHYHUWR217R
,IWKHOHYHULVPRYHGSDVWWKH WXUQRIIWKHIRJOLJKWVWXUQWKHULQJWR
EXWWRQDJDLQ UHVLVWDQFHSRLQWWKHLQGLFDWRULV WKH2))SRVLWLRQ
VZLWFKHGRQFRQVWDQWO\:KHQWKH
VWHHULQJZKHHOPRYHVEDFNWKH
LQGLFDWRULVDXWRPDWLFDOO\GHDFWLYDWHG
 /LJKWLQJ

5HDUIRJOLJKWV ,QWHULRUOLJKWLQJ 1RWH


7KHEDWWHU\FDQEHGLVFKDUJHGLIWKH
OLJKWVVWD\RQIRUDORQJWLPH
,QWHULRUOLJKWV
&RXUWHV\OLJKW  :DUQLQJ
$YRLGXVLQJWKHFRXUWHV\OLJKW
ZKLOHGULYLQJLQWKHGDUN
$OLWSDVVHQJHUFRPSDUWPHQW
UHGXFHVYLVLELOLW\LQWKHGDUNDQG
FRXOGFDXVHDFROOLVLRQ

7RWXUQRQWKHUHDUIRJOLJKWWZLVWWKH
HQGRIWKHZLQGVFUHHQZLSHUOHYHU
ZKHQWKHORZEHDPKHDGOLJKWVDUHRQ
7RWXUQRIIWKHUHDUIRJOLJKWWZLVWWKH
HQGRIWKHOHYHUDJDLQ 2SHUDWHURFNHUVZLWFK
c DOZD\VRQXQWLOVKXWRII
5HYHUVLQJOLJKWV PDQXDOO\
Z DXWRPDWLFVZLWFKLQJRQZKHQ
7KHUHYHUVLQJOLJKWVFRPHRQZKHQ \RXRSHQDGRRUDQGRIIDIWHU
WKHLJQLWLRQLVRQDQGUHYHUVHJHDULV GRRUVDUHFORVHG
VHOHFWHG ഓ DOZD\VRIIHYHQZKHQGRRUV
DUHRSHQ
/LJKWLQJ 

/LJKWLQJIHDWXUHV
%DWWHU\GLVFKDUJH
SURWHFWLRQ
6ZLWFKLQJRIIHOHFWULFOLJKWV
7RSUHYHQWWKHEDWWHU\IURPEHLQJ
GLVFKDUJHGVRPHOLJKWVDUHWXUQHGRII
DXWRPDWLFDOO\LI\RXRSHQWKHGULYHU
V
GRRUZKHQWKHLJQLWLRQLVVZLWFKHGWR
/2&.RU$&&
7KHFRXUWHV\OLJKWVZLOOQRWEHDSSOLHG
ZLWKWKLVIXQFWLRQ
 ,QIRWDLQPHQWV\VWHP

,QIRWDLQPHQWV\VWHP ,QWURGXFWLRQ 5HOHDVLQJWKHVHFXULW\ORFN


7XUQRIIWKHUDGLR
7KHIWGHWHUUHQWIHDWXUH 7KHUDGLRVKRZV6HFXULW\8QORFN
7KHIWGHWHUUHQWIHDWXUHZLOOSURWHFW 7KLVPDNHVWKHVHFXULW\IXQFWLRQ
,QWURGXFWLRQ   XQDYDLODEOHWHPSRUDULO\,W
VSRVVLEOH
DJDLQVWWKHIWRIWKHUDGLR
5DGLR   WRXVHWKLVUDGLR
:KHQDQ,'FRGHLVUHJLVWHUHGZLWK
$XGLRSOD\HUV   WKHVHFXULW\ORFNIXQFWLRQHYHQLIWKH  3UHVV>32:(5@VLPXOWDQHRXVO\
$8;LQSXW   XQLWLVVWROHQDQGLQVWDOOHGHOVHZKHUH KROGLQJGRZQ>,1)2@DQG>@LQWKH
LWZLOOQRWEHSRVVLEOHWRXVHLWXQOHVV VHFXULW\XQORFNPRGH
86%SRUW  
WKHUHJLVWHUHG,'FRGHLVLQSXW  7KH,'FRGHUHJLVWUDWLRQPRGHZLOO
EHHVWDEOLVKHG
6HWWLQJWKHVHFXULW\ORFN  3UHVV>@a>@WRHQWHUWKHIRXUGLJLW
UHJLVWHULQJWKH,'FRGH FRGHV
7XUQRIIWKHUDGLR  7KHUDGLRVKRZVVHFXULW\RII
 3UHVV>32:(5@VLPXOWDQHRXVO\ ,IWKHFRGHHQWU\PDWFKHVWKH
KROGLQJGRZQ>,1)2@DQG>@ UHJLVWHUHGFRGHWKHVHFXULW\ORFNLV
 7KH,'FRGHUHJLVWUDWLRQPRGHZLOO UHOHDVHGDQGWKHUDGLRLVWXUQHGRII
EHHVWDEOLVKHG
1RWH
 3UHVV>@a>@WRHQWHUWKHIRXUGLJLW 7KHIWGHWHUUHQWIXQFWLRQFDQEH
FRGHV DFWLYDWHGDIWHUGHDOHUVHWWLQJ,I\RX
 3UHVV>@a>@WRFRQILUPWKHFRGH KDYHDSUREOHPFRQWDFWWKHGHDOHU
DJDLQ
 7KHUDGLRVKRZVVHFXULW\RQ
7KH,'FRGHZLOOEHUHJLVWHUHGDQGWKH
UDGLRZLOOEHWXUQHGRII
,QIRWDLQPHQWV\VWHP 

&RQWUROHOHPHQWVRYHUYLHZ
7\SH
 ,QIRWDLQPHQWV\VWHP

 >35(6(7@a $)2Q2II5'6$)VZLWFKLQJ /RQJ3UHVV&RQWLQXRXVWXQH


ဈ 5DGLR0RGH IXQFWLRQHQDEOHGLVDEOH GRZQ
6KRUW3UHVV5HFDOOWKHSUH 5(*2Q2II5'6UHJLRQDO ဈ &'PRGH
PHPRUL]HGVWDWLRQLQWKHSUHVHW IXQFWLRQHQDEOHGLVDEOH 6KRUW3UHVVSUHYLRXVWUDFNRU
PHPRU\ 37<QRQH5'6SURJUDPW\SH ILOHSOD\EDFN
/RQJ3UHVV6WRUHWRSUHVHW VHOHFWLRQ /RQJ3UHVV)DVWUHYHUVH
PHPRU\ )DY3DJHa)DYRULWHSDJH SOD\EDFN
ဈ &'0RGH VHWWLQJ  >781(83@
>',5@HQDEOHRUGLVDEOH $673DJH2Q2II$XWRVWRUH ဈ 5DGLRPRGH
GLUHFWRU\SOD\EDFNPRGH SDJHHQDEOHGLVDEOH
6KRUW3UHVVVWHSWXQHXS
>537@HQDEOHRUGLVDEOH  >6281'@
/RQJ3UHVV&RQWLQXRXVWXQH
UHSHDWSOD\EDFNPRGH ဈ %DVV0LGGOH7UHEOH)DGHU XS
>5'0@HQDEOHRUGLVDEOH %DODQFH3UHVHW(4DGMXVWPHQW
ဈ &'PRGH
UDQGRPSOD\EDFNPRGH  $X[6RFNHW
6KRUW3UHVV1H[WWUDFNRUILOH
>,17@HQDEOHRUGLVDEOH ဈ 6WHUHRDXGLRVLJQDOLQSXW SOD\EDFN
LQWURVFDQSOD\EDFNPRGH  >$8;@ /RQJ3UHVV)DVWIRUZDUG
 &'6/27 ဈ $X[LOLDU\PRGHVHOHFWLRQ SOD\EDFN
 >(-(&7@  >781('2:1@  >92/80(@
ဈ (MHFWWKHGLVFIURPWKH&'GHFN ဈ 5DGLRPRGH ဈ 9ROXPHDGMXVWPHQW
 >730(18@ 6KRUW3UHVVVWHSWXQHGRZQ ဈ 7RQHDGMXVWPHQWLQWKHWRQH
ဈ 6KRUW3UHVV7UDIILF FRQWUROPRGH
DQQRXQFHPHQWUHFHSWLRQ  >32:(5@
VHWWLQJ
ဈ :KHQWKHSRZHULV21
ဈ /RQJ3UHVV&RQILJXUDWLRQ
VHWWLQJ 6KRUWSUHVV$XGLRPXWHRQRII
,QIRWDLQPHQWV\VWHP 

/RQJSUHVV7XUQVRQRIIWKH  >86%@ /RQJ3UHVV,QIRUPDWLRQ


XQLW ဈ 86%PRGHVHOHFWLRQ GLVSOD\RIWKHFXUUHQWVWDWLRQ
ဈ :KHQWKHSRZHULV2)) ဈ 86%3DXVHIXQFWLRQZKHQ86% ဈ &'0RGH
3UHVVLQJWKHSRZHUEXWWRQ SOD\EDFN 6KRUW3UHVV,QIRUPDWLRQ
WXUQVWKHSRZHU21  86%62&.(7 GLVSOD\RIWKHFXUUHQWWUDFN
 >6((.83@ ဈ 6RFNHWRI86%  >&'@
ဈ 5DGLRPRGH  >%$1'$67@ ဈ &RPSDFW'LVFSOD\EDFNPRGH
6KRUW3UHVVQH[W VHOHFWLRQ
ဈ 5DGLR0RGHVHOHFWLRQ
EURDGFDVWLQJVWDWLRQVHDUFK ဈ &'SDXVHIXQFWLRQZKHQ&'
XSZDUG ဈ 5DGLRPRGH SOD\EDFN
/RQJ3UHVV37<VHDUFK 6KRUWSUHVV$0RU)0UDGLR
XSZDUG EDQGVHOHFWLRQ
ဈ &'PRGH /RQJ3UHVV$XWRVWRUH
IXQFWLRQVHDUFKDQGPHPRU\
1H[WIROGHUZKHQ&'SOD\EDFN WKHEHVWVWDWLRQV
 >6((.'2:1@  >)$9,1)2@
ဈ 5DGLRPRGH ဈ 5DGLR0RGH
6KRUW3UHVVSUHYLRXV 6KRUW3UHVV6HOHFWLRQIDYRULWH
EURDGFDVWLQJVWDWLRQVHDUFK SDJH
GRZQZDUG
/RQJ3UHVV37<VHDUFK
GRZQZDUG
ဈ &'PRGH
3UHYLRXVIROGHUZKHQ&'
SOD\EDFN
 ,QIRWDLQPHQWV\VWHP

7\SH
,QIRWDLQPHQWV\VWHP 

 >35(6(7@a  >730(18@  >$8;@


ဈ 5DGLR0RGH ဈ 5DGLR0RGH ဈ $X[LOLDU\PRGHVHOHFWLRQ
6KRUW3UHVV5HFDOOWKHSUH 6KRUW3UHVV7UDIILF  >781('2:1@
PHPRUL]HGVWDWLRQLQWKHSUHVHW DQQRXQFHPHQWUHFHSWLRQ ဈ 5DGLRPRGH
PHPRU\ VHWWLQJ
6KRUW3UHVVVWHSWXQHGRZQ
/RQJ3UHVV6WRUHWRSUHVHW /RQJ3UHVV&RQILJXUDWLRQ
PHPRU\ VHWWLQJ /RQJ3UHVV&RQWLQXRXVWXQH
GRZQ
ဈ &'86%L3RG0RGH $)2Q2II5'6$)VZLWFKLQJ
IXQFWLRQHQDEOHGLVDEOH ဈ &'86%L3RGPRGH
>',5@HQDEOHRUGLVDEOH
GLUHFWRU\SOD\EDFNPRGH 5(*2Q2II5'6UHJLRQDO 6KRUW3UHVVSUHYLRXVWUDFNRU
IXQFWLRQHQDEOHGLVDEOH ILOHSOD\EDFN
>537@HQDEOHRUGLVDEOH
UHSHDWSOD\EDFNPRGH 37<QRQH5'6SURJUDPW\SH /RQJ3UHVV)DVWUHYHUVH
VHOHFWLRQ SOD\EDFN
>%$&.@UHWXUQWRSUHYLRXV
PRGH )DY3DJHa)DYRULWHSDJH  >781(83@
>6(/(&7@FKDQJH VHWWLQJ ဈ 5DGLRPRGH
EHWZHHQL3RGRUSOD\EDFN $673DJH2Q2II$XWRVWRUH 6KRUW3UHVVVWHSWXQHXS
PRGH SDJHHQDEOHGLVDEOH /RQJ3UHVV&RQWLQXRXVWXQH
>5'0@HQDEOHRUGLVDEOH ဈ L3RGPRGH XS
UDQGRPSOD\EDFNPRGH L3RGQDYLJDWLRQFRQWURO ဈ &'86%L3RGPRGH
>,17@HQDEOHRUGLVDEOH  >6281'@ 6KRUW3UHVV1H[WWUDFNRUILOH
LQWURVFDQSOD\EDFNPRGH SOD\EDFN
ဈ %DVV0LGGOH7UHEOH)DGHU
 &'6/27 %DODQFH3UHVHW(4DGMXVWPHQW /RQJ3UHVV)DVWIRUZDUG
 >(-(&7@  $X[6RFNHW SOD\EDFN
ဈ (MHFWWKHGLVFIURPWKH&'GHFN ဈ 6WHUHRDXGLRVLJQDOLQSXW
 ,QIRWDLQPHQWV\VWHP

 >92/80(@  >6((.'2:1@  >)$9,1)2@


ဈ 9ROXPHDGMXVWPHQW ဈ 5DGLRPRGH ဈ 5DGLR0RGH
ဈ 7RQHDGMXVWPHQWLQWKHWRQH 6KRUW3UHVVSUHYLRXV 6KRUW3UHVV6HOHFWLRQIDYRULWH
FRQWUROPRGH EURDGFDVWLQJVWDWLRQVHDUFK SDJH
 >32:(5@ GRZQZDUG /RQJ3UHVV,QIRUPDWLRQ
ဈ :KHQWKHSRZHULV21 /RQJ3UHVV37<VHDUFK GLVSOD\RIWKHFXUUHQWVWDWLRQ
GRZQZDUG ဈ &'0RGH
6KRUWSUHVV$XGLRPXWHRQRII
ဈ &'PRGH 6KRUW3UHVV,QIRUPDWLRQ
/RQJSUHVV7XUQVRQRIIWKH
XQLW 3UHYLRXVIROGHUZKHQ&' GLVSOD\RIWKHFXUUHQWWUDFN
SOD\EDFN  >&'@
ဈ :KHQWKHSRZHULV2))
 >86%L3RG@ ဈ &RPSDFW'LVFSOD\EDFNPRGH
3UHVVLQJWKHSRZHUEXWWRQ
WXUQVWKHSRZHU21 ဈ 86%RUL3RGPRGHVHOHFWLRQ VHOHFWLRQ
 >6((.83@ ဈ 86%RUL3RG3DXVHIXQFWLRQ ဈ &'SDXVHIXQFWLRQZKHQ&'
ZKHQ86%SOD\EDFN SOD\EDFN
ဈ 5DGLRPRGH
 86%62&.(7
6KRUW3UHVVQH[W
EURDGFDVWLQJVWDWLRQVHDUFK ဈ 6RFNHWRI86%
XSZDUG  >%$1'$67@
/RQJ3UHVV37<VHDUFK ဈ 5DGLR0RGHVHOHFWLRQ
XSZDUG ဈ 5DGLRPRGH
ဈ &'PRGH 6KRUWSUHVV$0RU)0UDGLR
1H[WIROGHUZKHQ&'SOD\EDFN EDQGVHOHFWLRQ
/RQJ3UHVV$XWRVWRUH
IXQFWLRQVHDUFKDQGPHPRU\
WKHEHVWVWDWLRQV
,QIRWDLQPHQWV\VWHP 

6WHHULQJZKHHODXGLRFRQWUROV WKHUDGLRLQFUHDVHVWKHDXGLR  &'386%RUL3RG02'(


YROXPHVWHSE\VWHS 7\SH 
 >@ 3UHVVWKLVEXWWRQOHVVWKDQ
3UHVV>>@WRGHFUHDVHWKHDXGLR VHFRQGWRJRWRWKHQH[W
YROXPH3UHVVWKLVEXWWRQWKHQ WUDFN 7UDFNඎ7UDFNඎ
WKHUDGLRGHFUHDVHVWKHDXGLR 3UHVVWKLVEXWWRQPRUHWKDQ
YROXPH,IWKLVEXWWRQLVSUHVVHG VHFRQGWRSOD\EDFNWKH
PRUHWKDQVHFRQGWKHQWKH WUDFNIDVWIRUZDUG
UDGLRGHFUHDVHWKHDXGLRYROXPH  >02'(@
VWHSE\VWHSVWHS 7KHSOD\PRGHZLOOEHFKDQJHE\
 >6((.@ IROORZLQJRUGHUZKHQHYHUWKLV
 5$',202'( EXWWRQLVSUHVVHG
3UHVVWKLVEXWWRQWRPRYHWR )0ඎ$0ඎ &'3 ඎ 86%RU
 >3:5@ QH[WSUHVHWVWDWLRQ )DYRULWH L3RG ඎ $8; ඎ)0
3RZHURQ3UHVVWKLVEXWWRQ SUHVHWඎඎඎ 7KHUDGLRVNLSVWKH&'3PRGHLI
3UHVVWKLVEXWWRQPRUHWKDQ WKHUHLVQRGLVFLQWKHUDGLR7KH
3RZHURII3UHVVWKLVEXWWRQPRUH
VHFRQGWRVHDUFKIRUWKH UDGLRVNLSVWKH86%RUL3RGPRGH
WKDQVHFRQG
QH[WVWDWLRQ LIWKHUHLVQR86%PHPRU\RUL3RG
$XGLRPXWH3UHVVWKLVEXWWRQ LQVWUXPHQWRQWKHUDGLR
ZKHQWKHSRZHULVRQ  &'302'(
7KHUDGLRVNLSVWKH$8;PRGHLI
 >@ 3UHVVWKLVEXWWRQWRMXPSWR WKHUHLVQR$X[MDFNLQWKHVRFNHW
WKHQH[WWUDFN 7UDFNඎ RQWKHUDGLR
3UHVVWKH>>@EXWWRQWRLQFUHDVH
7UDFNඎ
WKHDXGLRYROXPH3UHVVWKLV L3RGPRGHRQO\W\SH
EXWWRQWKHQWKHUDGLRLQFUHDVHV 3UHVVWKLVEXWWRQPRUHWKDQ
WKHDXGLRYROXPH,IWKLVEXWWRQLV VHFRQGWRSOD\EDFNWKH
SUHVVHGPRUHWKDQVHFRQGWKHQ WUDFNIDVWIRUZDUG
 ,QIRWDLQPHQWV\VWHP

8VDJH 0LGUDQJH7UHEOH%DODQFH )DGHU 5DGLR


$GMXVWPHQW
3RZHU2Q2II $OPRVWWKHVDPHDV%DVV7RQH 8VDJH
3RZHU2Q $GMXVWPHQWDERYHEXWVHOHFWHDFK
WRQHPRGH $0)05DGLR
3UHVV>32:(5@WRWXUQRQWKHUDGLR
3RZHURII 3UHVHW(46HOHFWLRQ
5DGLR0RGH6HOHFWLRQ
3UHVV>32:(5@DQGKROGPRUHWKDQ $OPRVWWKHVDPHDV%DVV7RQH
3UHVVWKH>%$1'$67@WROLVWHQWKH
VHFRQGWRWXUQRIIWKHUDGLR $GMXVWPHQWDERYHEXWVHOHFWSUHVHW
UDGLRIURPRWKHUPRGH
(4PRGH
$XGLR0XWH 7KHNLQGVRISUHVHW(40RGHDUH %DQG&KDQJH
3UHVV>32:(5@WRPDNHDXGLRPXWH ඎ2))ඎ323ඎ5RFNඎ&RXQWU\ඎ 7KHEDQGFKDQJHVIURP$0WR)0RU
ZKHQWKHSRZHULVRQ 9RLFHඎ-D]]ඎ&ODVVLFඎ2))ඎ )0WR$0DOOWLPHV>%$1'$67@
SUHVVHG
9ROXPH$GMXVWPHQW
7XUQWKHYROXPHFORFNZLVHWR 0DQXDO7XQH8S'RZQ
LQFUHDVHWKHDXGLRYROXPH 3UHVV>781(83@>781('2:1@WR
LQFUHDVHGHFUHDVHWKHIUHTXHQF\
7XUQWKHYROXPHDQWLFORFNZLVHWR
GHFUHDVHWKHDXGLRYROXPH 7KHIUHTXHQF\LVLQFUHDVHGRU
GHFUHDVHGVWHSHYHU\WLPH>781(
$XGLR$GMXVWPHQW 83@>781('2:1@LVSUHVVHG
,IWKLVEXWWRQLVSUHVVHGFRQWLQXRXVO\
%DVV7RQH$GMXVWPHQW WKHIUHTXHQF\LVLQFUHDVHGRU
3UHVV>6281'@UHSHDWHGO\XQWLOUDGLR GHFUHDVHGFRQWLQXRXVO\
VKRZV%$6DQGWXUQWKH>92/80(@
NQREFORFNZLVHRUDQWLFORFNZLVHWR 6HHN8S'RZQ
LQFUHDVHRUGHFUHDVHWKHEDVVHIIHFW 3UHVV>6((.83@>6((.'2:1@WR
ILQGQH[WSUHYLRXVVWDWLRQ
DXWRPDWLFDOO\
,QIRWDLQPHQWV\VWHP 

)DYRULWHSUHVHWPHPRU\ $XWRVWRUH)XQFWLRQ 5HJLRQDO2Q2II


IDYRULWHSDJHVFDQVWRUHXSWR $XWRVWRUH 7KH5HJLRQDOIXQFWLRQPDNHVWKH
VWDWLRQVUHJDUGOHVVRI$0RU)0 3UHVV>%$1'$67@PRUHWKDQ UDGLRMXPSWRUHJLRQDOVWDWLRQ
EDQG VHFRQGWKHQWKHUDGLRVWDUWVWKH 5HJLRQDORII 
7KHFXUUHQWVWDWLRQFDQEHVWRUHGE\ DXWRVWRUHIXQFWLRQ 3UHVV>730(18@PRUHWKDQ
WKHIROORZLQJSURFHGXUH 'HOHWH$XWRVWRUH3DJH VHFRQGDQGSUHVVWKH>730(18@
 6HHNVWDWLRQRUPDQXDOO\VHOHFW $IWHUWKHDXWRVWRUHIXQFWLRQLV XQWLOWKHUDGLRVKRZV5(*2IIDQG
WKHVWDWLRQ\RXZDQW RSHUDWHGWKHUDGLRKDVDXWRVWRUH WXUQWKH>92/80(@NQREXQWLO5(*
SDJHV 2QLVVKRZQ
 6HOHFWWKHIDYRULWHSDJHE\
SUHVVLQJ>)$9,1)2@ 7RGHOHWHWKHDXWRVWRUHSDJHSUHVV 7UDIILFDQQRXQFHPHQWUHFHSWLRQ
>730(18@PRUHWKDQVHFRQGWKHQ 3UHVVWKH>730(18@WROLVWHQWKH
 3UHVVDQGKROG>35(6(7@PRUH
SUHVV>730(18@UHSHDWHGO\XQWLOWKH WUDIILFDQQRXQFHPHQWIURPWKLV
WKDQVHFRQG
UDGLRVKRZV$673DJH2QDQGWXUQ VWDWLRQ
%\DERYHSURFHGXUHWKHVWDWLRQV WKH>92/80(@NQREXQWLO$673DJH
DUHVWRUHGLQWKHIDYRULWHSUHVHW 7UDIILFDQQRXQFHPHQWUHFHSWLRQ
2IILVVKRZQ FDQFHO
PHPRU\
0(182SHUDWLRQ 3UHVVWKH>730(18@WRFDQFHOWKH
5HFDOOIDYRULWHSUHVHW WUDIILFDQQRXQFHPHQWUHFHSWLRQ7KH
$)2Q2II
<RXFDQOLVWHQWRWKHVWDWLRQVWRUHGLQ WUDIILFDQQRXQFHPHQWLVGLVDEOHG
7KH$)IXQFWLRQPDNHVWKHUDGLRWUDFN
WKHIDYRULWHSUHVHWE\WKHIROORZLQJ WKHEHVWVWDWLRQDOOWKHWLPH 7UDIILFVWDWLRQVHHN
SURFHGXUH 3UHVVWKH>730(18@LQWKHVWDWLRQ
3UHVV>730(18@PRUHWKDQ
 6HOHFWWKHIDYRULWHSDJHE\ VHFRQGDQGSUHVVWKH>730(18@ WKDWGRHVQ
WKDYHWUDIILFLQIRUPDWLRQ
SUHVVLQJ>)$9,1)2@ XQWLOWKHUDGLRVKRZV$)2IIDQGWXUQ WKHUDGLRVHDUFKHVWKHVWDWLRQWKDW
 3UHVV>35(6(7@RQZKLFKWKH WKH>92/80(@NQREXQWLO$)2QLV KDVWKHWUDIILFDQQRXQFHPHQW
VWDWLRQ\RXZDQWWROLVWHQWRLV VKRZQ
VWRUHG
 ,QIRWDLQPHQWV\VWHP

5DGLR5HFHSWLRQ &DXWLRQ $XGLRSOD\HUV


5DGLRUHFHSWLRQPD\EHGLVUXSWHGE\
VWDWLFQRLVHGLVWRUWLRQRUORVVRI %HVXUHWRUHPRYHWKHDQWHQQD &'SOD\HU
UHFHSWLRQGXHWR EHIRUHHQWHULQJDSODFHZLWKDORZ $VHDFK&'LVLQVHUWHGWKHUDGLRZLOO
࿢ FKDQJHVLQGLVWDQFHIURPWKH FHLOLQJRULWPD\EHGDPDJHG DSSHDURQWKHGLVSOD\DQGDVHDFK&'
WUDQVPLWWHU (QWHULQJWKHDXWRPDWLFFDUZDVK LVORDGLQJ)LOHFKHFNZLOODSSHDURQ
࿢ PXOWLSDWKUHFHSWLRQGXHWR ZLWKWKHDQWHQQDLQVWDOOHGPD\ WKHGLVSOD\
UHIOHFWLRQDQG UHVXOWLQGDPDJHWRWKHDQWHQQDRU 2QFHSOD\EDFNEHJLQVWKHWUDFNDQG
࿢ VKDGRZLQJ WKHURRISDQHO%HVXUHWRUHPRYH WUDFNQXPEHUZLOODSSHDURQWKH
\RXUDQWHQQDEHIRUHHQWHULQJWKH GLVSOD\
)L[HG0DVW$QWHQQD DXWRPDWLFFDUZDVK
,IWKHLJQLWLRQRUUDGLRLVWXUQHGRIIZLWK
D&'LQWKHSOD\HULWZLOOVWD\LQWKH
,QVWDOOWKHDQWHQQDIXOO\WLJKWHQHGDQG
SOD\HU:KHQD&'LVLQWKHSOD\HUDQG
DGMXVWHGWRWKHXSULJKWSRVLWLRQWR
WKHLJQLWLRQLVWXUQHGRQWKHUDGLR
HQVXUHSURSHUUHFHSWLRQ
PXVWEHWXUQHGRQEHIRUHWKHFXUUHQW
&'ZLOOVWDUWSOD\EDFN:KHQWKH
LJQLWLRQDQGUDGLRDUHWXUQHGRQWKH
&'ZLOOVWDUWSOD\LQJZKHUHLWVWRSSHG
LILWZDVWKHODVWVHOHFWHGDXGLR
VRXUFH
7KH&'SOD\HUFDQSOD\WKHVPDOOHU
LQFK FP VLQJOH&'VZLWKDQ
DGDSWHUULQJ)XOOVL]H&'VDQGWKH
VPDOOHU&'VDUHORDGHGLQWKHVDPH
7RUHPRYHWKHURRIDQWHQQDURWDWHLW PDQQHU
FRXQWHUFORFNZLVH7RLQVWDOOWKHURRI
DQWHQQDURWDWHLWFORFNZLVH
,QIRWDLQPHQWV\VWHP 

,ISOD\LQJD&'5WKHVRXQGTXDOLW\ &'(-(&7
PD\EHUHGXFHGGXHWR&'5TXDOLW\ &DXWLRQ
3UHVV>(-(&7@WKHQWKHGLVFZLOOEH
WKHPHWKRGRIUHFRUGLQJWKHTXDOLW\RI HMHFWHGIURPWKHUDGLR3XOOWKHGLVF
WKHPXVLFWKDWKDVEHHQUHFRUGHG ,I\RXDGGDQ\ODEHOWRD&'LQVHUW
PRUHWKDQRQH&'LQWRWKHVORWDW RXWRIWKHUDGLR
DQGWKHZD\WKH&'5KDVEHHQ
KDQGOHG7KHUHPD\EHDQLQFUHDVHLQ DWLPHRUDWWHPSWWRSOD\ 3DXVH
VNLSSLQJGLIILFXOW\LQILQGLQJWUDFNV VFUDWFKHGRUGDPDJHG&'V\RX
3UHVV>&'@WRSDXVHSOD\EDFNZKLOH
DQGRUGLIILFXOW\LQORDGLQJDQG FRXOGGDPDJHWKH&'SOD\HU
D&'LVSOD\LQJEDFN
HMHFWLQJ,IWKHVHSUREOHPVRFFXU :KHQXVLQJWKH&'SOD\HUXVH
RQO\&'VLQJRRGFRQGLWLRQZLWKRXW 3$86(ZLOOIODVKRQWKHGLVSOD\
FKHFNWKHERWWRPVXUIDFHRIWKH&' 3UHVV>&'@DJDLQWRVWDUWSOD\EDFN
,IWKHVXUIDFHRIWKH&'LVGDPDJHG DQ\ODEHOORDGRQH&'DWDWLPH
VXFKDVFUDFNHGEURNHQRU DQGNHHSWKH&'SOD\HUDQGWKH
ORDGLQJVORWIUHHRIIRUHLJQ 1H[W3UHYLRXV7UDFN
VFUDWFKHGWKH&'ZLOOQRWSOD\ 3UHVV>781(83781('2:1@WKHQ
SURSHUO\ PDWHULDOVOLTXLGVDQGGHEULV
WKHUDGLRVWDUWVSOD\EDFNRIWKHQH[W
,IWKHUHLVQRDSSDUHQWGDPDJHWU\ SUHYLRXVWUDFN
DNQRZQJRRG&'
'LVF,QVHUW
,QVHUWD&'LQWRD&'VORWZLWK&' )DVWIRUZDUG)DVWUHYHUVH
'RQRWDGGDQ\ODEHOWRD&'LWFRXOG ODEHOXSWKHQWKHGLVNLVSXOOHGLQWR
JHWFDXJKWLQWKH&'SOD\HU,ID&'LV 3UHVVDQGKROG>781(83781(
WKHVORWDXWRPDWLFDOO\DQGVWDUWV '2:1@WKHQWKHUDGLRSOD\VEDFN
UHFRUGHGRQDSHUVRQDOFRPSXWHUDQG SOD\EDFN
DGHVFULSWLRQODEHOLVQHHGHGWU\ IDVWIRUZDUGIDVWUHYHUVH
ODEHOLQJWKHWRSRIWKHUHFRUGHG&' &'3OD\EDFN0RGH6HOHFWLRQ 1H[W3UHYLRXV)ROGHURQO\03
ZLWKDPDUNLQJSHQLQVWHDG ,QVHUWD&'LQWR&'GHFNWKHQWKH :0$GLVF
UDGLRJRHVWRWKHSOD\EDFNPRGH 3UHVV>6((.836((.'2:1@WKHQ
2USUHVV>&'@WRSOD\EDFNWKHGLVF WKHUDGLRVWDUWSOD\EDFNRIWKHQH[W
IURPRWKHUPRGHZKHQ&'LVLQVHUWHG SUHYLRXVWUDFN
 ,QIRWDLQPHQWV\VWHP

537 5HSHDW 7RFDQFHOWKLVIXQFWLRQSUHVV>',5@ $8;LQSXW


3UHVV>537@WKHQWKHUDGLRSOD\V DJDLQ
EDFNWKHFXUUHQWWUDFNUHSHDWHGO\ *HQHUDOLQIRUPDWLRQ
,'7DJLQIRUPDWLRQGLVSOD\RQO\
7RFDQFHOWKLVIXQFWLRQSUHVV>537@ 03:0$GLVF
DJDLQ $8;PRGH
3UHVV>)$9,1)2@WKHUDGLRGLVSOD\V
WKH,'WDJLQIRUPDWLRQRIWKHFXUUHQW 7KHUDGLRKDVRQHDX[LOLDU\LQSXW
5'0 5DQGRP VRFNHW GLDPHWHUPP ORFDWHGRQ
3UHVV>5'0@WKHQWKHUDGLRSOD\V ILOHV
WKHORZHUULJKWVLGHRIWKHIDFHSODWH
EDFNWKHWUDFNVUDQGRPO\
7KLVLVQRWDQDXGLRRXWSXWGRQRW
7RFDQFHOWKLVIXQFWLRQSUHVV>5'0@ SOXJWKHKHDGSKRQHMDFNLQWRWKHIURQW
DJDLQ DX[LOLDU\LQSXWVRFNHW
,17 ,QWUR6FDQ <RXFDQKRZHYHUFRQQHFWDQ
3UHVV>,17@WKHQWKHUDGLRSOD\VEDFN H[WHUQDODXGLRGHYLFHVXFKDVDQ
MXVWVHFRQGVRIWKHFXUUHQWWUDFN L3RGODSWRSFRPSXWHU03SOD\HU
MXPSVWRWKHQH[WWUDFNDQGGRHVWKLV &'FKDQJHURU;070UHFHLYHUHWF
DFWLRQUHSHDWHGO\ WRWKHDX[LOLDU\LQSXWMDFNIRUXVHDV
DQRWKHUVRXUFHIRUDXGLROLVWHQLQJ
7RFDQFHOWKLVIXQFWLRQSUHVV>,17@
DJDLQ $8;,Q0RGH6HOHFWLRQ
$OO'LUHFWRU\0RGHRQO\03:0$ 3UHVV>$8;@LQWKHRWKHUSOD\EDFN
GLVF PRGH
5HSHDWLQWURVFDQDQGUDQGRP ,IWKHDX[LOLDU\MDFNLVQ
WLQVHUWHGWKH
IXQFWLRQRSHUDWHLQWKLVIROGHUZKHQ $8;PRGHZLOOEHSUHYHQWHG
',5PRGHLVDFWLYH
3UHVV>',5@WKHQWKHUDGLRRSHUDWHVLQ
WKHGLUHFWRU\PRGH
,QIRWDLQPHQWV\VWHP 

86%SRUW 86%RUL3RGLQVHUWLRQ )DVWIRUZDUGIDVWUHYHUVH


,QVHUWD86%PHPRU\RUL3RG 3UHVVDQGKROG>781(83@>781(
*HQHUDOLQIRUPDWLRQ LQVWUXPHQWLQWRWKH86%VRFNHWVR '2:1@WKHQWKHUDGLRSOD\VEDFN
WKHDXGLRSOD\VEDFNWKH86%ILOHV IDVWIRUZDUGIDVWUHYHUVH
86%SOD\EDFNPRGH 7\SH DXWRPDWLFDOO\
1H[WSUHYLRXVIROGHU 21/<03
86%H[WUDFWLRQ :0$GLVF
86%SOD\EDFNPRGHVHOHFWLRQ
3XOOWKH86%PHPRU\RUL3RG 3UHVV>6((.83@>6((.'2:1@
3UHVVWKH>86%@WRFKDQJHWRSOD\
LQVWUXPHQWIURPWKH86%VRFNHWE\ WKHQWKHUDGLRVWDUWVSOD\EDFNRIWKH
EDFNWKH86%ILOHVIURPRWKHUPRGH
EDQG QH[WSUHYLRXVIROGHU
86%PHPRU\LQVHUWLRQ 2WKHUIXQFWLRQVDUHVDPHZLWK&'
537 5HSHDW
,QVHUWD86%PHPRU\LQWRWKH86% PRGH
3UHVV>537@WKHQWKHUDGLRSOD\V
VRFNHWVRWKHUDGLRSOD\VEDFNWKH
3DXVH EDFNWKHFXUUHQWWUDFNUHSHDWHGO\
86%ILOHVDXWRPDWLFDOO\
3UHVV>86%L3RG@WRSDXVHSOD\EDFN 7RFDQFHOWKLVIXQFWLRQSUHVV>537@
86%([WUDFWLRQ ZKLOH86%PHPRU\RUL3RG DJDLQ
3XOOWKH86%PHPRU\IURPWKH86% LQVWUXPHQWLVSOD\EDFN
VRFNHWE\KDQG 5'0 5DQGRP
3$86(
ZLOOIODVKRQWKHGLVSOD\
3UHVV>86%L3RG@DJDLQWRVWDUW 3UHVV>5'0@WKHQWKHUDGLRSOD\V
2WKHUIXQFWLRQVDUHVDPHZLWK&'
SOD\LQJWKH86% EDFNWKHWUDFNUDQGRPO\
PRGH
7RFDQFHOWKLVIXQFWLRQSUHVV>5'0@
3OD\LQJD86%RUL3RG 7\SH 1H[WSUHYLRXVWUDFN DJDLQ
3UHVV>781(83@>781('2:1@
86%RUL3RGSOD\EDFNPRGHVHOHFWLRQ WKHQWKHUDGLRVWDUWVSOD\EDFNRIWKH ,17 ,QWUR6FDQ
3UHVV>86%L3RG@WRFKDQJHWR QH[WSUHYLRXVWUDFN 3UHVV>,17@WKHQWKHUDGLRSOD\VEDFN
SOD\EDFNWKH86%RUL3RGILOHVIURP WKHILUVWIHZVHFRQGIRUDOOWUDFNV
RWKHUPRGH VHTXHQWLDOO\
7RFDQFHOWKLVIXQFWLRQSUHVV>,17@
DJDLQ
 ,QIRWDLQPHQWV\VWHP

L3RGQDYLJDWLRQIXQFWLRQ
L3RGQDYLJDWLRQPRGH
3UHVV>0(18@WRFKRRVHWKH
VXSSRUWHGFDWHJRU\IURPWKHL3RG
LQVWUXPHQW
1H[WSUHYLRXVFDWHJRU\
3UHVV>781(83@>781('2:1@
DQGSUHVV>6(/(&7@WKHQWKHUDGLR
VWDUWVSOD\EDFN
&DQFHORU3UHYLRXV6WHS
3UHVV>%$&.@WKHQWKHUDGLRJHWV
EDFNWRWKHSUHYLRXVVWHS
&OLPDWHFRQWURO 

&OLPDWHFRQWURO &OLPDWHFRQWUROV\VWHPV 7HPSHUDWXUH


$GMXVWWKHWHPSHUDWXUHE\WXUQLQJWKH
+HDWLQJDQGYHQWLODWLRQ NQRE
V\VWHP UHG ZDUP
&OLPDWHFRQWUROV\VWHPV   EOXH FROG
$LUYHQWV  
+HDWLQJZLOOQRWEHIXOO\HIIHFWLYHXQWLO
0DLQWHQDQFH  
WKHHQJLQHKDVUHDFKHGQRUPDO
RSHUDWLQJWHPSHUDWXUH

$LUGLVWULEXWLRQ
6HOHFWDLURXWOHWE\WXUQLQJWKH
FHQWHUHGNQRE
+ WRKHDGDUHDDQGIRRWZHOO
* WRIRRWZHOOZLWKDVPDOO
DPRXQWRIWKHDLUEHLQJ
GLUHFWHGWRZLQGVUHHQIURQW
GRRUZLQGRZVDQGVLGHDLU
&RQWUROVIRU YHQWV
࿢ 7HPSHUDWXUH , WRKHDGDUHDYLDDGMXVWDEOHDLU
࿢ $LUGLVWULEXWLRQ YHQWV
) WRZLQGVUHHQDQGIRRWZHOO
࿢ )DQVSHHG
ZLWKDVPDOODPRXQWRIWKHDLU
࿢ +HDWLQJ EHLQJGLUHFWHGWRIURQWGRRU
࿢ 'HIURVWLQJZLQGVUHHQ ZLQGRZVDQGVLGHDLUYHQWV
࿢ $LUUHFLUFXODWLRQ 5 WRZLQGVFUHHQDQGIURQWGRRU
ZLQGRZVZLWKDVPDOODPRXQW
࿢ +HDWHGUHDUZLQGRZ^  RIWKHDLUEHLQJGLUHFWHGWRVLGH
DLUYHQWV
 &OLPDWHFRQWURO

)DQVSHHG )RUPD[LPXPKHDWLQJ  6HWWKHUHFLUFXODWLRQPRGHWR


$GMXVWWKHDLUIORZE\VZLWFKLQJWKHIDQ  0RYHUHFLUFXODWLRQOHYHUWRWKH RXWVLGHDLUPRGHDQGWXUQWKHDLU
WRWKHGHVLUHGVSHHG ULJKWIRUWKHUHFLUFXODWLRQPRGH GLVWULEXWLRQNQREWR'()5267
5
 7XUQWHPSHUDWXUHFRQWURONQREDOO
+HDWLQJ WKHZD\WRWKHUHGDUHDIRU  7XUQWHPSHUDWXUHFRQWURONQREWR
KHDWLQJ UHGDUHDIRUZDUPDLU
1RUPDOKHDWLQJ
 7XUQIDQFRQWURONQREWRPD[LPXP  $GMXVWWKHIDQFRQWURONQREWR
 7XUQWHPSHUDWXUHFRQWURONQREWR
VSHHG KLJKHVWVSHHGIRUTXLFN
UHGDUHDIRUKHDWLQJ
GHIURVWLQJ
 7XUQDLUGLVWULEXWLRQNQRE 'HIURVWLQJWKHZLQGVFUHHQ  2SHQVLGHDLUYHQWVDVUHTXLUHG
 7XUQIDQFRQWURONQREWRGHVLUHG DQGGLUHFWWKHPWRZDUGVWKHGRRU
VSHHG ZLQGRZV
0D[LPXPKHDWLQJ
8VHWKHPD[LPXPKHDWLQJPRGHIRU
TXLFNKHDWLQJRIWKHSDVVHQJHUDUHD
'RQRWXVHLWIRUOHQJWK\SHULRGV,WFDQ
UHVXOWLQDQDFFLGHQWEHFDXVHWKH
LQWHULRUDLUPD\EHFRPHVWDOHDQGWKH
ZLQGRZVPD\IRJFDXVLQJORVVRI
GULYHU
VYLVLELOLW\
7RFOHDUWKHZLQGRZVWXUQWKHDLU
GLVWULEXWLRQNQREWR5DQGPRYHWKH
UHFLUFXODWLRQOHYHUWRWKHULJKWWRDOORZ
IUHVKDLULQWRWKHYHKLFOH
&OLPDWHFRQWURO 

&DXWLRQ
$LUUHFLUFXODWLRQV\VWHP 7KHH[FKDQJHRIIUHVKDLULV
UHGXFHGLQDLUUHFLUFXODWLRQPRGH
7KHGLIIHUHQFHEHWZHHQWKH ,QRSHUDWLRQZLWKRXWFRROLQJWKHDLU
RXWVLGHDLUDQGWKHWHPSHUDWXUHRI KXPLGLW\LQFUHDVHVVRWKH
WKHZLQGVFUHHQFDQFDXVHWKH ZLQGRZVPD\PLVWXS7KHTXDOLW\
ZLQGRZVWRIRJWKHUHE\UHVWULFWLQJ RIWKHSDVVHQJHUFRPSDUWPHQWDLU
\RXUIURQWYLVLRQ GHWHULRUDWHVZKLFKPD\FDXVHWKH
YHKLFOHRFFXSDQWVWRIHHOGURZV\
'RQRWXVH)/225'()5267
)RU'()52675LQH[WUHPHO\
KXPLGZHDWKHUZKHQWKH $LUFRQGLWLRQLQJV\VWHP
WHPSHUDWXUHFRQWURONQRELVVHWWR
WKHEOXHDUHD  :DUQLQJ
7KLVFDQOHDGWRDQDFFLGHQWZKLFK
FDQGDPDJH\RXUYHKLFOHDQG 'RQRWVOHHSLQDYHKLFOHZLWKWKH
7KHDLUUHFLUFXODWLRQPRGHLVRSHUDWHG
FDXVHSHUVRQDOLQMXULHV DLUFRQGLWLRQLQJRUKHDWLQJV\VWHP
ZLWKWKHOHYHU
RQ,WPD\FDXVHVHULRXVKDUPRU
GHDWKGXHWRDGURSLQR[\JHQ
 :DUQLQJ FRQWHQWDQGRUERG\WHPSHUDWXUH
'ULYLQJZLWKUHFLUFXODWLRQPRGHIRU
SURORQJHGSHULRGRIWLPHFDQPDNH
\RXVOHHS\3HULRGLFDOO\WXUQWRWKH
RXWVLGHDLUPRGHIRUIUHVKDLU
 &OLPDWHFRQWURO

$LUGLVWULEXWLRQ 'HPLVWLQJWKHZLQGVFUHHQ
6HOHFWDLURXWOHWE\WXUQLQJWKH
FHQWHUHGNQRE
+ WRKHDGDUHDDQGIRRWZHOO
* WRIRRWZHOOZLWKDVPDOO
DPRXQWRIWKHDLUEHLQJ
GLUHFWHGWRZLQGVUHHQIURQW
GRRUZLQGRZVDQGVLGHDLU
YHQWV
, WRKHDGDUHDYLDDGMXVWDEOHDLU
YHQWV
) WRZLQGVUHHQDQGIRRWZHOO
&RQWUROVIRU ZLWKDVPDOODPRXQWRIWKHDLU
࿢ 7HPSHUDWXUH EHLQJGLUHFWHGWRIURQWGRRU
ZLQGRZVDQGVLGHDLUYHQWV  6HWWKHUHFLUFXODWLRQPRGHWR
࿢ $LUGLVWULEXWLRQ 5 WRZLQGVFUHHQDQGIURQWGRRU RXWVLGHDLUPRGHDQGWXUQWKHDLU
࿢ )DQVSHHG ZLQGRZVZLWKDVPDOODPRXQW GLVWULEXWLRQNQREWR'()5267
RIWKHDLUEHLQJGLUHFWHGWRVLGH 5
࿢ 'HPLVWLQJDQG'HIURVWLQJ
DLUYHQWV  6ZLWFKRQFRROLQJL
࿢ $LUUHFLUFXODWLRQ
 6HOHFWGHVLUHGWHPSHUDWXUH
࿢ &RROLQJL )DQVSHHG
$GMXVWWKHDLUIORZE\VZLWFKLQJWKHIDQ  $GMXVWWKHIDQFRQWURONQREWR
࿢ +HDWHGUHDUZLQGRZ
WRWKHGHVLUHGVSHHG GHVLUHGVSHHG
7HPSHUDWXUH
$GMXVWWKHWHPSHUDWXUHE\WXUQLQJWKH
NQRE
UHG ZDUP
EOXH FROG
&OLPDWHFRQWURO 

$LUUHFLUFXODWLRQV\VWHP 7KHH[FKDQJHRIIUHVKDLULV (YHQWKRXJKWKHDLUFRQGLWLRQLQJLV


UHGXFHGLQDLUUHFLUFXODWLRQPRGH WXUQHGRQWKHYHKLFOHZLOOSURGXFH
,QRSHUDWLRQZLWKRXWFRROLQJWKHDLU ZDUPDLULIWKHWHPSHUDWXUHNQRELVVHW
KXPLGLW\LQFUHDVHVVRWKH WRWKHUHGDUHD
ZLQGRZVPD\PLVWXS7KHTXDOLW\ 7RWXUQRIIWKHDLUFRQGLWLRQLQJ
RIWKHSDVVHQJHUFRPSDUWPHQWDLU V\VWHPWXUQWKHIDQNQREWR
GHWHULRUDWHVZKLFKPD\FDXVHWKH
YHKLFOHRFFXSDQWVWRIHHOGURZV\ &DXWLRQ

&RROLQJL 8VHRQO\FRUUHFWUHIULJHUDQW
2SHUDWHGZLWKWKHLEXWWRQDQGLV
IXQFWLRQDORQO\ZKHQWKHHQJLQHDQG  :DUQLQJ
IDQDUHUXQQLQJ
7KHDLUUHFLUFXODWLRQPRGHLVRSHUDWHG 7KHDLUFRQGLWLRQLQJV\VWHPFRROVDQG &OLPDWHFRQWUROV\VWHPVKDYHWR
ZLWKWKHOHYHU GHKXPLGLILHV GULHV DVVRRQDV EHVHUYLFHGH[FOXVLYHO\E\
RXWVLGHWHPSHUDWXUHLVDOLWWOHDERYH TXDOLILHGSHUVRQQHO,PSURSHU
WKHIUHH]LQJSRLQW7KHUHIRUH VHUYLFHPHWKRGVPD\FDXVH
 :DUQLQJ FRQGHQVDWLRQPD\IRUPDQGGULSIURP SHUVRQDOLQMXU\
XQGHUWKHYHKLFOH
'ULYLQJZLWKUHFLUFXODWLRQPRGHIRU
SURORQJHGSHULRGRIWLPHFDQPDNH ,IQRFRROLQJRUGU\LQJLVUHTXLUHG 1RUPDOFRROLQJ
\RXVOHHS\3HULRGLFDOO\WXUQWRWKH VZLWFKRIIWKHFRROLQJV\VWHPWRVDYH  2SHUDWHWKHDLUFRQGLWLRQLQJ
RXWVLGHDLUPRGHIRUIUHVKDLU IXHO V\VWHP
7KHDLUFRQGLWLRQLQJZLOOQRWRSHUDWH  7XUQWHPSHUDWXUHFRQWURONQREWR
ZKHQWKHIDQFRQWURONQRELVLQWKHRII EOXHDUHDIRUFRROLQJ
SRVLWLRQ  7XUQWKHDLUGLVWULEXWLRQNQRE
 $GMXVWWKHIDQFRQWURONQREWRWKH
GHVLUHGVSHHG
 &OLPDWHFRQWURO

0D[LPXPFRROLQJ (OHFWURQLFFOLPDWHFRQWURO 7HPSHUDWXUHSUHVHOHFWLRQRIWKH


GHVLUHGWHPSHUDWXUH
V\VWHP 7KHIROORZLQJIXQFWLRQVFDQEH
DGDSWHGPDQXDOO\GLVDEOLQJ
 :DUQLQJ DXWRPDWLFPRGH
'RQRWVOHHSLQDYHKLFOHZLWKWKH )DQVSHHGVHOHFWDEOHDLUIORZ
DLUFRQGLWLRQLQJRUKHDWLQJV\VWHP 02'(VHOHFWDEOHDLUGLVWULEXWLRQ
RQ,WPD\FDXVHVHULRXVKDUPRU 5 GHPLVWLQJDQGGHIURVWLQJ
GHDWKGXHWRDGURSLQR[\JHQ  VZLWFKLQJV\VWHPRQRURII
FRQWHQWDQGRUERG\WHPSHUDWXUH L VZLWFKLQJFRROLQJRQRURII
 DLUUHFLUFXODWLRQ
+HDWHGUHDUZLQGRZ^ 
7RDFKLHYHPD[LPXPFRROLQJGXULQJ ,QWKHDXWRPDWLFPRGHWKHIDQVSHHG
KRWZHDWKHUDQGZKHQ\RXUYHKLFOH DQGDLUGLVWULEXWLRQDXWRPDWLFDOO\
KDVEHHQH[SRVHGWRWKHVXQIRU UHJXODWHWKHDLUIORZ
DORQJWLPH
 2SHUDWHWKHDLUFRQGLWLRQLQJ
V\VWHP
 0RYHUHFLUFXODWLRQOHYHUWRWKH
ULJKWIRUWKHUHFLUFXODWLRQPRGH
 7XUQWHPSHUDWXUHFRQWURONQREDOO
WKHZD\WRWKHEOXHDUHDIRU &RQWUROVIRU
FRROLQJ
$872DXWRPDWLFPRGHDOOVHWWLQJV
 7XUQIDQFRQWURONQREWRKLJKHVW H[FHSWWHPSHUDWXUHDUHFKRVHQ
VSHHG DXWRPDWLFDOO\E\WKHV\VWHP
&OLPDWHFRQWURO 

6XQOLJKWVHQVRU 7HPSHUDWXUHVHQVRU

7KHHOHFWURQLFFOLPDWHFRQWUROV\VWHP
LVRQO\IXOO\RSHUDWLRQDOZKHQWKH
HQJLQHLVUXQQLQJ 6XQOLJKWVHQVRULVORFDWHGLQIURQWRI 7HPSHUDWXUHLQIRUPDWLRQVDPSOHG
WKHZLQGVFUHHQGHIURVWHUYHQWV7KLV IURPWKHLQWHULRURI\RXUFDULVXVHGLQ
1RWH VHQVRUGHWHFWVVXQOLJKWZKHQ HVWDEOLVKLQJYHQWLODWLRQV\VWHP
:KHQWKH02'(NQREVZLWFKHG RSHUDWLQJLQ$872PRGH UHTXLUHPHQWVZKHQRSHUDWLQJLQ
PRUHWKDQW\SHVRIDLUGLVWULEXWLRQ $872PRGH
ZLWKSXVKLQJWKH$872EXWWRQLQ 1RWH
VHFRQGVWKHWHPSHUDWXUHGHJUHH 'RQRWFRYHUWKHVXQOLJKWVHQVRULQ 1RWH
FDQEHFKDQJHGEHWZHHQ RUGHUQRWWRJHWZURQJLQIRUPDWLRQ 'RQRWSODFHVWLFNHUVRYHUWKH
&HQWLJUDGHDQG)DKUHQKHLW WHPSHUDWXUHVHQVRUDVWKLVZLOO
LPSDLULWVIXQFWLRQ
 &OLPDWHFRQWURO

$XWRPDWLFPRGH$872 7HPSHUDWXUHSUHVHOHFWLRQ UHFLUFXODWLRQPRGHLVVHOHFWHGDQGWKH


DLUGLVWULEXWLRQLVVZLWFKHGWR,
DXWRPDWLFDOO\ZLWKWKHPD[LPXPIDQ
VSHHGRIFRROLQJ
7RRSHUDWHWKHPD[LPXPKHDWLQJ
SXVKWKH$ $872EXWWRQDQGDGMXVWWKH
WHPSHUDWXUHWR+ +,7KHQWKH
UHFLUFXODWLRQPRGHLVFKDQJHGWREH
GUDZQRXWVLGHDLUDQGWKHGLVWULEXWLRQ
LVVZLWFKHGWR*DXWRPDWLFDOO\ZLWK
WKH$XWR+ +, RIVWHSV IDQVSHHG
RIKHDWLQJ

'HPLVWLQJDQGGHIURVWLQJWKH
%DVLFVHWWLQJIRUPD[LPXPFRPIRUW 6HWWHPSHUDWXUHWRWKHGHVLUHGYDOXH ZLQGRZV5
 3UHVV$$872EXWWRQWKHDLU E\WXUQLQJWKHNQRE
 3UHVVEXWWRQ5
FRQGLWLRQLQJLVDFWLYDWHG UHG ZDUP
DXWRPDWLFDOO\ EOXH FROG  7HPSHUDWXUHDQGDLUGLVWULEXWLRQ
DUHVHWDXWRPDWLFDOO\DQGWKHIDQ
 2SHQDOODLUYHQWV ,IWKHPLQLPXPWHPSHUDWXUHLVVHWWKH UXQVWRWKHPLQLPXPRIVWHSV
 6HWSUHVHOHFWHGWHPSHUDWXUH FOLPDWHFRQWUROV\VWHPUXQVDW VSHHG
XVLQJULJKWURWDU\NQRE PD[LPXPFRROLQJ  7RUHWXUQWRDXWRPDWLFPRGH
$OODLUYHQWVDUHDFWXDWHG ,IWKHPD[LPXPWHPSHUDWXUHLVVHW SUHVVEXWWRQ5RU$$872
DXWRPDWLFDOO\LQDXWRPDWLFPRGH7KH WKHFOLPDWHFRQWUROV\VWHPUXQVDW 1RWH
DLUYHQWVVKRXOGWKHUHIRUHDOZD\VEH PD[LPXPKHDWLQJ 7KHDLUFRQGLWLRQLQJV\VWHPPD\QRW
RSHQ 7RRSHUDWHWKHPD[LPXPFRROLQJ RSHUDWHDXWRPDWLFDOO\LQZLQWHU
SXVKWKH$$872EXWWRQDQGDGMXVWWKH
WHPSHUDWXUHWR//27KHQWKH
&OLPDWHFRQWURO 

0DQXDOVHWWLQJV $LUGLVWULEXWLRQ02'( ) WRZLQGVUHHQDQGIRRWZHOO


&OLPDWHFRQWUROV\VWHPVHWWLQJVFDQ ZLWKDVPDOODPRXQWRIWKHDLU
EHFKDQJHGE\DFWLYDWLQJWKHEXWWRQV EHLQJGLUHFWHGWRIURQWGRRU
DQGURWDU\NQREVDVIROORZV ZLQGRZVDQGVLGHDLUYHQWV
5 WRZLQGVFUHHQDQGIURQWGRRU
&KDQJLQJDVHWWLQJZLOOGHDFWLYDWHWKH ZLQGRZVZLWKDVPDOODPRXQW
DXWRPDWLFPRGH RIWKHDLUEHLQJGLUHFWHGWRVLGH
DLUYHQWV
)DQVSHHG
7RUHWXUQWRDXWRPDWLFDLUGLVWULEXWLRQ
SUHVVEXWWRQ$$872

&RROLQJ
$FWLYDWHRUGHDFWLYDWHZLWKWKHL
EXWWRQ
7XUQWKH0 02'(NQRERQFHRUPRUH
IRUGHVLUHGDGMXVWPHQW7KHDLU 7KHDLUFRQGLWLRQLQJV\VWHPFRROVDQG
GLVWULEXWLRQLVLQGLFDWHGRQWKH GHKXPLGLILHV GULHV DVVRRQDV
GLVSOD\ RXWVLGHWHPSHUDWXUHLVDERYH
DVSHFLILFOHYHO7KHUHIRUH
+ WRKHDGDUHDDQGIRRWZHOO FRQGHQVDWLRQPD\IRUPDQGGULSIURP
* WRIRRWZHOOZLWKDVPDOO XQGHUWKHYHKLFOH
DPRXQWRIWKHDLUEHLQJ
7XUQOHIWURWDU\NQRE&ORFNZLVHLVWR GLUHFWHGWRZLQGVUHHQIURQW ,IQRFRROLQJRUGU\LQJLVUHTXLUHG
LQFUHDVHWKHIDQVSHHGDQGFRXQWHU GRRUZLQGRZVDQGVLGHDLU VZLWFKRIIWKHFRROLQJV\VWHPWRVDYH
FORFNZLVHLVWRGHFUHDVH YHQWV IXHO
7RUHWXUQWRDXWRPDWLFPRGH3UHVV , WRKHDGDUHDYLDDGMXVWDEOHDLU
YHQWV &DXWLRQ
$872EXWWRQ
8VHRQO\FRUUHFWUHIULJHUDQW
 &OLPDWHFRQWURO

 :DUQLQJ
6\VWHPVZLWFKLQJRII $LUYHQWV
7XUQLQJWKHOHIWURWDU\NQREWR
&OLPDWHFRQWUROV\VWHPVKDYHWR VZLWFKHVRIIDOOIXQFWLRQVRIWKH $GMXVWDEOHDLUYHQWV
EHVHUYLFHGH[FOXVLYHO\E\ KHDWLQJYHQWLODWLRQDQGFRROLQJ
V\VWHP $WOHDVWRQHDLUYHQWPXVWEHRSHQ
TXDOLILHGSHUVRQQHO,PSURSHU ZKLOHFRROLQJLVRQLQRUGHUWRSUHYHQW
VHUYLFHPHWKRGVPD\FDXVH WKHHYDSRUDWRUIURPLFLQJXSGXHWR
SHUVRQDOLQMXU\ ODFNRIDLUPRYHPHQW

0DQXDODLUUHFLUFXODWLRQ
PRGH
7KHPDQXDODLUUHFLUFXODWLRQPRGHLV
RSHUDWHGZLWKWKHEXWWRQ

 :DUQLQJ
7KHH[FKDQJHRIIUHVKDLULV
UHGXFHGLQDLUUHFLUFXODWLRQPRGH
,QRSHUDWLRQZLWKRXWFRROLQJWKHDLU
KXPLGLW\LQFUHDVHVVRWKH
ZLQGRZVPD\PLVWXS7KHTXDOLW\
RIWKHSDVVHQJHUFRPSDUWPHQWDLU 7KHFHQWHUYHQWLVQRWFORVHG
GHWHULRUDWHVZKLFKPD\FDXVHWKH FRPSOHWHO\
YHKLFOHRFFXSDQWVWRIHHOGURZV\ 'LUHFWWKHIORZRIDLUE\WLOWLQJDQG
VZLYHOLQJWKHVODWV
&OLPDWHFRQWURO 

)L[HGDLUYHQWV 0DLQWHQDQFH
$GGLWLRQDODLUYHQWVDUHORFDWHG
EHQHDWKWKHZLQGVFUHHQDQGIURQW $LULQWDNH
GRRUZLQGRZVDQGLQWKHIRRWZHOOV

3UHVVWKHFRYHURIHDFKYHQWWRRSHQ
WKHVLGHYHQWVDQGURWDWHLWWRWKH
GLUHFWLRQ\RXZDQW
,I\RXGRQRWZDQWWKHIORZFORVHWKH
FRYHURIWKHYHQW 7KHDLULQWDNHLQIURQWRIWKH
ZLQGVFUHHQLQWKHHQJLQH
 :DUQLQJ FRPSDUWPHQWPXVWEHNHSWFOHDUWR
DOORZDLULQWDNH5HPRYHDQ\OHDYHV
'RQRWDWWDFKDQ\REMHFWVWRWKH GLUWRUVQRZ
VODWVRIWKHDLUYHQWV5LVNRI
GDPDJHDQGLQMXU\LQFDVHRIDQ
DFFLGHQW
 &OLPDWHFRQWURO

3ROOHQILOWHU &DXWLRQ
3DVVHQJHUFRPSDUWPHQWDLU 0RUHIUHTXHQWPDLQWHQDQFHRIWKH
ILOWHU DLUILOWHULVUHTXLUHGLIWKHGULYLQJ
7KHILOWHUFOHDQVGXVWVRRWSROOHQDQG FLUFXPVWDQFHVDUHGXVW\URDGVDLU
VSRUHVIURPWKHDLUHQWHULQJWKH SROOXWLRQDUHDVDQGIUHTXHQW
YHKLFOHWKURXJKWKHDLULQWDNH XQSDYHGURDGV
7KHILOWHUHIILFLHQF\LVGHFUHDVHG
DQGWKHEURQFKXVLVEDGO\
DIIHFWHG

 5HPRYHWKHILOWHUFRYHUE\SXOOLQJ $LUFRQGLWLRQLQJUHJXODU
WKHULJKWVLGHRIWKHFRYHU RSHUDWLRQ
 5HSODFHWKHDLUFRQGLWLRQHUILOWHU ,QRUGHUWRHQVXUHFRQWLQXRXVO\
 $VVHPEOHWKHILOWHUFRYHUDQG HIILFLHQWSHUIRUPDQFHFRROLQJPXVW
JORYHER[LQUHYHUVHRUGHU EHRSHUDWHGIRUDIHZPLQXWHVRQFH
DPRQWKLUUHVSHFWLYHRIWKHZHDWKHU
1RWH DQGWLPHRI\HDU2SHUDWLRQZLWK
:HUHFRPPHQGWKDW\RXFRQVXOW FRROLQJLVQRWSRVVLEOHZKHQRXWVLGH
)LOWHUUHSODFHPHQW \RXUDXWKRULVHGZRUNVKRSWRUHSODFH WHPSHUDWXUHLVORZ
WKHILOWHU
 5HPRYHWKHJORYHER[
7RUHPRYHWKHJORYHER[RSHQ
DQGSXOOLWXSRQHDFKVLGH
&OLPDWHFRQWURO 

6HUYLFH
)RURSWLPDOFRROLQJSHUIRUPDQFHLWLV
UHFRPPHQGHGWRDQQXDOO\FKHFNWKH
FOLPDWHFRQWUROV\VWHP
࿢ )XQFWLRQDOLW\DQGSUHVVXUHWHVW
࿢ +HDWLQJIXQFWLRQDOLW\
࿢ /HDNDJHFKHFN
࿢ &KHFNRIGULYHEHOWV
࿢ &OHDQLQJRIFRQGHQVHUDQG
HYDSRUDWRUGUDLQDJH
࿢ 3HUIRUPDQFHFKHFN

&DXWLRQ
8VHRQO\FRUUHFWUHIULJHUDQW

 :DUQLQJ
&OLPDWHFRQWUROV\VWHPVKDYHWR
EHVHUYLFHGH[FOXVLYHO\E\
TXDOLILHGSHUVRQQHO,PSURSHU
VHUYLFHPHWKRGVPD\FDXVH
SHUVRQDOLQMXU\
 'ULYLQJDQGRSHUDWLQJ

'ULYLQJDQGRSHUDWLQJ 'ULYLQJKLQWV 6WDUWLQJDQGRSHUDWLQJ


&RQWURORIWKHYHKLFOH 1HZYHKLFOHUXQQLQJLQ
'ULYLQJKLQWV   8VHWKHIROORZLQJSUHFDXWLRQVIRUWKH
1HYHUFRDVWZLWKHQJLQHQRW ILUVWIHZKXQGUHGNLORPHWUHVWR
6WDUWLQJDQGRSHUDWLQJ   UXQQLQJ LPSURYHWKHSHUIRUPDQFHDQG
(QJLQHH[KDXVW   0DQ\V\VWHPVZLOOQRWIXQFWLRQLQWKLV HFRQRP\RI\RXUYHKLFOHDQGDGGWR
$XWRPDWLFWUDQVPLVVLRQ   VLWXDWLRQ HJEUDNHVHUYRXQLWSRZHU LWVORQJOLIH
VWHHULQJ 'ULYLQJLQWKLVPDQQHULV ࿢ $YRLGIXOOWKURWWOHVWDUWV
0DQXDOWUDQVPLVVLRQ  
DGDQJHUWR\RXUVHOIDQGRWKHUV
%UDNHV   ࿢ 'RQRWUDFHWKHHQJLQH
5LGHFRQWUROV\VWHPV   3HGDOV ࿢ $YRLGKDUGVWRSVH[FHSWLQ
2EMHFWGHWHFWLRQV\VWHPV   7RHQVXUHWKHSHGDOWUDYHOLV HPHUJHQFLHV7KLVZLOODOORZ\RXU
XQLQKLELWHGWKHUHPXVWEHQRPDWVLQ EUDNHVWREHGLQSURSHUO\
)XHO   WKHDUHDRIWKHSHGDOV ࿢ $YRLGTXLFNVWDUWVVXGGHQ
DFFHOHUDWLRQVDQGSURORQJHG
KLJKVSHHGGULYLQJLQRUGHUWRDYRLG
GDPDJHWRWKHHQJLQHDQGWR
FRQVHUYHIXHO
࿢ $YRLGIXOOWKURWWOHDFFHOHUDWLRQLQ
ORZJHDU
࿢ 'RQRWWRZDQ\RWKHUYHKLFOH
'ULYLQJDQGRSHUDWLQJ 

,JQLWLRQVZLWFKSRVLWLRQV  'DQJHU 6WDUWLQJWKHHQJLQH


'RQRWWXUQWKHNH\WRRU 6WDUWLQJHQJLQHZLWKWKHLJQLWLRQ
SRVLWLRQZKLOHGULYLQJ VZLWFK
9HKLFOHDQGEUDNHDVVLVWDQFH
ZRXOGQRWRSHUDWHFDXVLQJYHKLFOH
GDPDJHSHUVRQDOLQMXU\RU
SRVVLEO\GHDWK

&DXWLRQ
'RQRWOHDYHWKHNH\LQRU
SRVLWLRQIRUH[WHQGHGSHULRGV
 /2&. ,JQLWLRQRII ZKLOHWKHHQJLQHLVQRWUXQQLQJ
 $&& ,JQLWLRQRIIVWHHULQJ 7KLVZLOOGLVFKDUJHWKHEDWWHU\
ZKHHOORFNUHOHDVHG
 21 ,JQLWLRQRQ ࿢ 7XUQWKHNH\WRSRVLWLRQPRYHWKH
 67$57 6WDUWLQJ VWHHULQJZKHHOVOLJKWO\WRUHOHDVH
WKHVWHHULQJZKHHOORFN
࿢ 0DQXDOWUDQVPLVVLRQRSHUDWH
FOXWFK
࿢ $XWRPDWLFWUDQVPLVVLRQ0RYH
VHOHFWRUOHYHUWR3RU1
࿢ 'RQRWRSHUDWHDFFHOHUDWRUSHGDO
 'ULYLQJDQGRSHUDWLQJ

࿢ 7XUQWKHNH\WRSRVLWLRQ ࿢ 6ZLWFKRIIWKHHQJLQHDQGLJQLWLRQ (QJLQHH[KDXVW


GHSUHVVLQJWKHFOXWFKSHGDODQG 7XUQWKHVWHHULQJZKHHOXQWLOWKH
IRRWEUDNHWKHQUHOHDVHZKHQ VWHHULQJZKHHOORFNHQJDJHV
HQJLQHLVUXQQLQJ ࿢ ,IWKHYHKLFOHLVRQDOHYHOVXUIDFHRU  'DQJHU
%HIRUHUHVWDUWLQJRUWRVZLWFKRIIWKH XSKLOOVORSHHQJDJHILUVWJHDU
HQJLQHWXUQNH\EDFNWR EHIRUHVZLWFKLQJRIIWKHLJQLWLRQ2Q (QJLQHH[KDXVWJDVHVFRQWDLQ
DQXSKLOOVORSHWXUQWKHIURQW SRLVRQRXVFDUERQPRQR[LGH
&DXWLRQ ZKHHOVDZD\IURPWKHNHUE ZKLFKLVFRORXUOHVVDQGRGRXUOHVV
,IWKHYHKLFOHLVRQDGRZQKLOOVORSH DQGFRXOGEHIDWDOLILQKDOHG
'RQRWRSHUDWHVWDUWHUPRWRUIRU HQJDJHUHYHUVHJHDUEHIRUH ,IH[KDXVWJDVHVHQWHUWKHLQWHULRU
PRUHWKDQVHFRQGVDWDWLPH VZLWFKLQJRIIWKHLJQLWLRQ7XUQWKH RIWKHYHKLFOHRSHQWKHZLQGRZV
,IWKHHQJLQHGRHVQRWVWDUWZDLW IURQWZKHHOVWRZDUGVWKHNHUE +DYHWKHFDXVHRIWKHIDXOW
VHFRQGVEHIRUHWU\LQJDJDLQ ࿢ /RFNWKHYHKLFOHDQGDFWLYDWHWKH UHFWLILHGE\DZRUNVKRS
7KLVZLOOSUHYHQWVWDUWHUPRWRU DQWLWKHIWDODUPV\VWHP $YRLGGULYLQJZLWKDQRSHQORDG
GDPDJH FRPSDUWPHQWRWKHUZLVHH[KDXVW
JDVHVFRXOGHQWHUWKHYHKLFOH
3DUNLQJ
࿢ 'RQRWSDUNWKHYHKLFOHRQDQHDVLO\ &DWDO\WLFFRQYHUWHU
LJQLWDEOHVXUIDFH7KHKLJK 7KHFDWDO\WLFFRQYHUWHUUHGXFHVWKH
WHPSHUDWXUHRIWKHH[KDXVWV\VWHP DPRXQWRIKDUPIXOVXEVWDQFHVLQWKH
FRXOGLJQLWHWKHVXUIDFH H[KDXVWJDV
࿢ $OZD\VDSSO\SDUNLQJEUDNHZLWKRXW
SUHVVLQJUHOHDVHEXWWRQ$SSO\DV
ILUPO\DVSRVVLEOHRQGRZQKLOORU
XSKLOOVORSHV'HSUHVVWKHIRRW
EUDNHDWWKHVDPHWLPHWRUHGXFH
RSHUDWLQJIRUFH
'ULYLQJDQGRSHUDWLQJ 

&DXWLRQ $XWRPDWLFWUDQVPLVVLRQ 6HOHFWRUOHYHU


)XHOJUDGHVRWKHUWKDQWKRVHOLVWHG 7KHDXWRPDWLFWUDQVPLVVLRQLVDQ
RQSDJHV  FRXOG HOHFWURQLFDOO\FRQWUROOHGIRXUVSHHG
GDPDJHWKHFDWDO\WLFFRQYHUWHURU WUDQVPLVVLRQ
HOHFWURQLFFRPSRQHQWV )RXUWKJHDULVRYHUGULYH
8QEXUQWSHWUROZLOORYHUKHDWDQG
GDPDJHWKHFDWDO\WLFFRQYHUWHU 6WDUWLQJWKHYHKLFOH
7KHUHIRUHDYRLGH[FHVVLYHXVHRI  $IWHUZDUPLQJXSWKHHQJLQH
WKHVWDUWHUUXQQLQJWKHIXHOWDQN FRQWLQXHWRSUHVVWKHEUDNHSHGDO
GU\DQGVWDUWLQJWKHHQJLQHE\ ZKLOHVKLIWLQJWKHVHOHFWRUOHYHUWR
SXVKLQJRUWRZLQJ HLWKHUWKH5'RUSRVLWLRQ
,QWKHHYHQWRIPLVILULQJXQHYHQ &DXWLRQ
HQJLQHUXQQLQJDUHGXFWLRQLQHQJLQH 3 3$5. /RFNVWKHIURQWZKHHOV
SHUIRUPDQFHRURWKHUXQXVXDO 6HOHFW3RQO\ZKHQWKHYHKLFOHLV
'RQRWVKLIWEHWZHHQ' 'ULYH DQG VWDWLRQDU\DQGWKHSDUNLQJEUDNHLV
SUREOHPVKDYHWKHFDXVHRIWKHIDXOW 5 5HYHUVH RU3 3DUN ZKLOHWKH
UHFWLILHGE\DZRUNVKRSDVVRRQDV DSSOLHG
YHKLFOHLVPRYLQJ7KLVZLOOFDXVH
SRVVLEOH,QDQHPHUJHQF\GULYLQJ 5 5(9(56( 6HOHFW5RQO\ZKHQ
GDPDJHWR\RXUWUDQVPLVVLRQDQG
FDQEHFRQWLQXHGIRUDVKRUWSHULRG WKHYHKLFOHLVVWDWLRQDU\
SHUVRQDOLQMXU\
NHHSLQJYHKLFOHVSHHGDQGHQJLQH 1 1(875$/ 1HXWUDOJHDUSRVLWLRQ
VSHHGORZ  5HOHDVHWKHSDUNLQJEUDNHDQG '7KLVGULYHSRVLWLRQLVIRUDOOQRUPDO
WKHEUDNHSHGDO GULYLQJFRQGLWLRQV$OORZVWKH
 6ORZO\SUHVVWKHDFFHOHUDWRU WUDQVPLVVLRQWRVKLIWLQWRDOOIRXU
SHGDOWRVHWWKHYHKLFOHLQPRWLRQ IRUZDUGJHDUV)RXUWKJHDULV
RYHUGULYHZKLFKUHGXFHVHQJLQH
VSHHGDQGQRLVHOHYHOZKLOH
LQFUHDVLQJIXHOHFRQRP\
 'ULYLQJDQGRSHUDWLQJ

$OORZVWKHWUDQVPLVVLRQWRVKLIW 7XUQRIIWKHHQJLQHDSSO\WKH
IURPVWWRQGJHDUDQGSUHYHQWV SDUNLQJEUDNHDQGUHPRYHWKH
DXWRPDWLFVKLIWLQJLQWRUGRU LJQLWLRQNH\ZKHQOHDYLQJWKH
WKJHDU YHKLFOH
6HOHFWGULYHUDQJHIRUPRUHSRZHU 1HYHUOHDYHWKHYHKLFOH
ZKHQFOLPELQJKLOOVDQGIRUHQJLQH XQDWWHQGHGZKLOHWKHHQJLQHLV
EUDNLQJZKHQGULYLQJGRZQVWHHS UXQQLQJ
KLOOV
7KLVSRVLWLRQORFNVWKHWUDQVPLVVLRQ 6KLIWLQJEHWZHHQJHDUSRVLWLRQV
LQILUVWJHDU 0RYHPHQWEHWZHHQFHUWDLQJHDU
6HOHFWIRUPD[LPXPHQJLQHEUDNLQJ SRVLWLRQVUHTXLUHVSUHVVLQJWKH
ZKHQGULYLQJGRZQVHYHUHJUDGHV UHOHDVHEXWWRQRQWKHVLGHRIWKH
VHOHFWRUOHYHU
&DXWLRQ )ROORZWKHGHVFULSWLRQVDVLQGLFDWHG
E\WKHDUURZVZKHQVKLIWLQJWKH
'RQRWDFFHOHUDWHZKLOHHQJDJLQJ VHOHFWRUOHYHU
DJHDU
1HYHUGHSUHVVWKHDFFHOHUDWRU
SHGDODQGEUDNHSHGDODWWKHVDPH
WLPH
:KHQDJHDULVHQJDJHGWKH
YHKLFOHVORZO\EHJLQVWRFUHHS
ZKHQWKHEUDNHLVUHOHDVHG 3XVKWKHUHOHDVHEXWWRQWRVKLIW
'RQRWXVHWKH3 3DUN SRVLWLRQLQ $UURZVLQGLFDWHVKLIWVWKDWGRQRW
SODFHRIWKHSDUNLQJEUDNH UHTXLUH\RXWRSXVKWKHUHOHDVH
EXWWRQ
'ULYLQJDQGRSHUDWLQJ 

1HYHUVKLIWWR3RU5ZKLOHWKH (QJLQHEUDNLQJLVWKHPRVWHIIHFWLYHLQ
YHKLFOHLVLQPRWLRQ GULYHUDQJH,IGULYHUDQJHLV
VHOHFWHGDWWRRKLJKVSHHGWKH
:KHQVWRSSLQJWKHYHKLFOHRQDQ WUDQVPLVVLRQUHPDLQVLQFXUUHQWJHDU
'HSUHVVWKHEUDNHSHGDODQGSXVK XSKLOOJUDGHGRQRWKROGWKH XQWLOWKHYHKLFOHVORZVGRZQ
UHOHDVHEXWWRQWRVKLIW YHKLFOHLQSODFHE\SUHVVLQJWKH
DFFHOHUDWRUSHGDO8VHWKHIRRW 6HOHFWGULYHUDQJHIRURUGLQDU\
6KLIWVWKDWUHTXLUH\RXWRSXVKWKH HQJLQHEUDNLQJHIIHFW)RUHYHQ
EUDNH
UHOHDVHEXWWRQDUHLQGLFDWHGE\ JUHDWHUVORZLQJDELOLW\VHOHFW
DUURZV 3UHVVWKHEUDNHSHGDOZKHQ
VKLIWLQJIURP3RU1WR5RU 1RWH
DIRUZDUGJHDU 8VHRIHQJLQHFRPSUHVVLRQGXULQJ
ORQJPRXQWDLQRXVGHVFHQWVPD\
2WKHUZLVHWUDQVPLVVLRQFRXOGEH
SURORQJWKHOLIHRI\RXUEUDNHV
GDPDJHGRUYHKLFOHFRXOGPRYH
6KLIWIUHHO\ XQH[SHFWHGO\FDXVLQJGULYHUWR 5RFNLQJWKHYHKLFOH
ORVHFRQWURORIWKHYHKLFOH 5RFNLQJWKHYHKLFOHLVRQO\
 :DUQLQJ UHVXOWLQJLQSHUVRQDOLQMXU\RU SHUPLVVLEOHLIWKHYHKLFOHLVVWXFNLQ
GDPDJHWRWKHYHKLFOHRURWKHU VDQGPXGRUVQRZ
7RKHOSSUHYHQWGDPDJHWRWKH SURSHUW\
0RYHWKHVHOHFWRUOHYHUEHWZHHQ
WUDQVPLVVLRQREVHUYHWKH 'DQG5LQDUHSHDWSDWWHUQ
IROORZLQJSUHFDXWLRQV (QJLQHEUDNLQJ
'RQRWUDFHWKHHQJLQHDQGDYRLG
'RQRWSUHVVWKHDFFHOHUDWRUSHGDO 7RKHOSXVHWKHEUDNLQJHIIHFWRI
VXGGHQDFFHOHUDWLRQ
ZKLOHVKLIWLQJIURP3RU1WR5' HQJLQHFRPSUHVVLRQZKHQGULYLQJRQ
RU DORQJGRZQKLOO 3DUNLQJ
7RGRVRPD\QRWRQO\GDPDJHWKH )RUDXWRPDWLFWUDQVPLVVLRQVHOHFW $IWHUVWRSSLQJWKHYHKLFOHE\SUHVVLQJ
WUDQVPLVVLRQEXWFRXOGFDXVH\RX WKHGULYHUDQJHRULIQHFHVVDU\ WKHEUDNHSHGDOHQJDJH3DQGSXOO
WRORVHFRQWURORIWKHYHKLFOH WKHOHYHUXSILUPO\DQGWKHQUHPRYH
LJQLWLRQNH\
8VH'DVPXFKDVSRVVLEOH
 'ULYLQJDQGRSHUDWLQJ

.LFNGRZQ 2YHUGULYHRII )DXOW


,QWKHHYHQWRIDIDXOWWKHPDOIXQFWLRQ
LQGLFDWRUOLJKWRUDXWRPDWLF
WUDQVPLVVLRQZDUQLQJOLJKW
LOOXPLQDWHV7KHWUDQVPLVVLRQQR
ORQJHUVKLIWVDXWRPDWLFDOO\QRU
PDQXDOO\EHFDXVHLWLVORFNHGLQ
DFHUWDLQJHDU
+DYHWKHFDXVHRIWKHIDXOWUHPHGLHG
E\DZRUNVKRS

,QWHUUXSWLRQRISRZHU
)RUIDVWHUDFFHOHUDWLRQSUHVVWKH 7KHIRXUWKJHDURI\RXUDXWRPDWLF
VXSSO\
DFFHOHUDWRUSHGDODOOWKHZD\GRZQ WUDQVPLVVLRQLVDQRYHUGULYH ,QWKHHYHQWRIDQLQWHUUXSWLRQRI
DQGKROG7KHWUDQVPLVVLRQVKLIWVWR 7RFDQFHOWKHRYHUGULYHIXQFWLRQ SRZHUVXSSO\WKHVHOHFWRUOHYHU
DORZHUJHDUGHSHQGLQJRQWKHHQJLQH SUHVVWKHRYHUGULYHEXWWRQDQGWKH2 FDQQRWEHPRYHGRXWRIWKH
VSHHG '2))LQGLFDWRULQWKHZDUQLQJWHOOWDOH 3SRVLWLRQ
ER[ZLOOEH21 ,IWKHEDWWHU\LVGLVFKDUJHGVWDUWWKH
7KH2'2))IXQFWLRQFDQEHXVHG YHKLFOHXVLQJMXPSOHDGV
ZKHQXQGHVLUDEOHVKLIWLQJWRIRXUWK ,IWKHEDWWHU\LVQRWWKHFDXVHRIWKH
JHDUKDSSHQVVXFKDVRQDORQJXSKLOO IDXOWUHOHDVHVHOHFWRUOHYHUDQG
JUDGLHQW UHPRYHLJQLWLRQNH\IURPLJQLWLRQORFN
1RWH
,QQRUPDOGULYLQJFRQGLWLRQVGULYH
ZLWKWKHRYHUGULYHIXQFWLRQDFWLYDWHG
IRUIXHOHFRQRP\
'ULYLQJDQGRSHUDWLQJ 

5HOHDVHVHOHFWRUOHYHU 0DQXDOWUDQVPLVVLRQ
<RXUYHKLFOHKDVD%UDNH
7UDQVPLVVLRQ6KLIW,QWHUORFN %76,
V\VWHP%HIRUHVKLIWLQJIURPSDUN 3 
WKHLJQLWLRQPXVWEH21DQG\RXPXVW
GHSUHVVWKHEUDNHSHGDODOOWKHZD\
GRZQ,I\RXFDQQRWVKLIWRXWRI3ZLWK
WKHLJQLWLRQ21DQGWKHEUDNHSHGDO
GHSUHVVHG
 7XUQWKHLJQLWLRQRII
 'HSUHVVDQGKROGWKHEUDNHSHGDO
DQGSXOOWKHSDUNLQJEUDNHOHYHU
XS  ,QVHUWDVFUHZGULYHULQWRWKH
RSHQLQJDVIDUDVLWZLOOJRDQG
PRYHWKHVHOHFWRUOHYHURXWRI3
6WDUWWKHHQJLQHDQGVKLIWLQWRWKH ,IWKHJHDUGRHVQRWHQJDJHVHWWKH
JHDU\RXZDQW OHYHULQQHXWUDOUHOHDVHWKHFOXWFK
,I3LVHQJDJHGDJDLQWKHVHOHFWRU SHGDODQGGHSUHVVDJDLQWKHQUHSHDW
OHYHUZLOOEHORFNHGLQSRVLWLRQ JHDUVHOHFWLRQ
DJDLQ 'RQRWJULQGWKHFOXWFKXQQHFHVVDULO\
 &ORVHFRYHU :KHQRSHUDWLQJGHSUHVVWKHFOXWFK
SHGDOFRPSOHWHO\'RQRWXVHWKH
 +DYH\RXUYHKLFOHUHSDLUHGDV SHGDODVDIRRWUHVW
VRRQDVSRVVLEOH
&DXWLRQ
 2SHQFRYHU ,WLVQRWDGYLVDEOHWRGULYHZLWKWKH
KDQGUHVWLQJRQWKHVHOHFWRUOHYHU
 'ULYLQJDQGRSHUDWLQJ

(QJLQHEUDNLQJ %UDNHV ,IWKHEUDNHSHGDOFDQEHSUHVVHG


)RUPDQXDOWUDQVPLVVLRQGRZQVKLIW IXUWKHUWKDQQRUPDOWKHEUDNHV
WRDORZHUJHDULQDVHTXHQWLDORUGHU 7KHEUDNHV\VWHPFRPSULVHVWZR PD\EHLQQHHGRIUHSDLU
LQGHSHQGHQWEUDNHFLUFXLWV &RQVXOWDZRUNVKRSLPPHGLDWHO\
 :DUQLQJ ,IDEUDNHFLUFXLWIDLOVWKHYHKLFOHFDQ :HUHFRPPHQGWKDW\RXFRQVXOW
VWLOOEHEUDNHGXVLQJWKHRWKHUEUDNH \RXUDXWKRUL]HGZRUNVKRS
'RQRWGRZQVKLIW\RXUPDQXDO
FLUFXLW+RZHYHUEUDNLQJHIIHFWLV
WUDQVPLVVLRQE\WZRRUPRUHJHDU
DFKLHYHGRQO\ZKHQWKHEUDNHSHGDO
SRVLWLRQVDWDWLPH
LVGHSUHVVHGILUPO\&RQVLGHUDEO\ &DXWLRQ
7KLVSUHYHQWVGDPDJHWR\RXU PRUHIRUFHLVQHHGHGIRUWKLV7KH
WUDQVPLVVLRQRUORVVRIFRQWURODQG EUDNLQJGLVWDQFHLVH[WHQGHG6HHN 'RQRWGULYHZLWK\RXUIRRWUHVWLQJ
SHUVRQDOLQMXULHV WKHDVVLVWDQFHRIDZRUNVKRSEHIRUH RQWKHEUDNHSHGDO7RGRVRZLOO
FRQWLQXLQJ\RXUMRXUQH\ DFFHOHUDWHZHDURIWKHEUDNH
1RWH FRPSRQHQWV7KHEUDNHVPD\DOVR
8VHRIHQJLQHFRPSUHVVLRQGXULQJ EHFRPHRYHUKHDWHGUHVXOWLQJLQ
&DXWLRQ ORQJHUEUDNLQJGLVWDQFHDQGDQ
ORQJPRXQWDLQRXVGHVFHQWVPD\
SURORQJWKHOLIHRI\RXUEUDNHV XQVDIHFRQGLWLRQ
,IRQHRIWKHFLUFXLWVIDLOWKHEUDNH
SHGDOPXVWEHSUHVVHGZLWK
JUHDWHUSUHVVXUHDQGWKHEUDNLQJ
GLVWDQFHPD\EHLQFUHDVHG+DYH
WKHEUDNHV\VWHPFKHFNHGDQG
UHSDLUHGE\DZRUNVKRS
LPPHGLDWHO\:HUHFRPPHQGWKDW
\RXFRQVXOW\RXUDXWKRUL]HG
ZRUNVKRS
'ULYLQJDQGRSHUDWLQJ 

$QWLORFNEUDNHV\VWHP )DXOW
 :DUQLQJ
$QWLORFNEUDNHV\VWHP $%6
$IWHUGULYLQJWKURXJKGHHSZDWHU SUHYHQWVWKHZKHHOVIURPORFNLQJ  :DUQLQJ
ZDVKLQJWKHYHKLFOHRUXVLQJWKH $%6VWDUWVWRUHJXODWHEUDNHSUHVVXUH
EUDNHVH[FHVVLYHO\ZKHQJRLQJ ,IWKHUHLVDIDXOWLQWKH$%6WKH
DVVRRQDVDZKHHOVKRZVDWHQGHQF\ ZKHHOVPD\EHOLDEOHWRORFNGXH
GRZQDVWHHSKLOOWKHEUDNHVFDQ WRORFN7KHYHKLFOHUHPDLQV
WHPSRUDULO\ORVHWKHLUVWRSSLQJ WREUDNLQJWKDWLVKHDYLHUWKDQ
VWHHUDEOHHYHQGXULQJKDUGEUDNLQJ QRUPDO7KHDGYDQWDJHVRI$%6
SRZHU7KLVPD\EHGXHWRZHW
EUDNHFRPSRQHQWVRURYHUKHDWLQJ $%6FRQWUROLVPDGHDSSDUHQW DUHQRORQJHUDYDLODEOH'XULQJ
WKURXJKDSXOVHLQWKHEUDNHSHGDO KDUGEUDNLQJWKHYHKLFOHFDQQR
,I\RXUEUDNHVWHPSRUDULO\ORVH DQGWKHQRLVHRIWKHUHJXODWLRQ ORQJHUEHVWHHUHGDQGPD\
WKHLUVWRSSLQJSRZHUEHFDXVHRI SURFHVV VZHUYH
RYHUKHDWLQJ6KLIWWRDORZHUJHDU
ZKHQJRLQJGRZQKLOOV'RQRW )RURSWLPXPEUDNLQJNHHSWKHEUDNH
SHGDOIXOO\GHSUHVVHGWKURXJKRXWWKH +DYHWKHFDXVHRIWKHIDXOWUHPHGLHG
FRQWLQXRXVO\DSSO\WKHEUDNHV E\DZRUNVKRS
EUDNLQJSURFHVVGHVSLWHWKHIDFWWKDW
,I\RXUEUDNHVWHPSRUDULO\ORVH WKHSHGDOLVSXOVDWLQJ'RQRWUHGXFH
WKHLUSRZHUEHFDXVHRIZHWEUDNH WKHSUHVVXUHRQWKHSHGDO
FRPSRQHQWVWKHIROORZLQJ
SURFHGXUHZLOOKHOSUHVWRUHWKHLU 'RQRWGHFUHDVH\RXUSRZHUWR
QRUPDOSHUIRUPDQFH GHSUHVVWKHIRRWEUDNH
 &KHFNEHKLQG\RXIRURWKHU :KHQ\RXVWDUWWKHYHKLFOHDIWHUWKH
YHKLFOHV LJQLWLRQLVVZLWFKHGRQDPHFKDQLFDO
VRXQGFDQEHKHDUGRQFH7KLVLV
 .HHSDVDIHIRUZDUGVSHHG QRUPDODQGVKRZVWKDWWKH$%6LV
ZLWKSOHQW\RIVSDFHWR\RXU UHDG\WRRSHUDWH
UHDUDQGVLGHV
&RQWUROLQGLFDWRUS 
 *HQWO\DSSO\WKHEUDNHVXQWLO
QRUPDOSHUIRUPDQFHLV
UHVWRUHG
 'ULYLQJDQGRSHUDWLQJ

3DUNLQJEUDNH %UDNHDVVLVW 5LGHFRQWUROV\VWHPV


,IWKHEUDNHSHGDOLVGHSUHVVHG
TXLFNO\DQGIRUFHIXOO\PD[LPXP (OHFWURQLF6WDELOLW\&RQWURO
EUDNHIRUFHLVDXWRPDWLFDOO\DSSOLHG (OHFWURQLF6WDELOLW\&RQWURO (6&
IXOOEUDNLQJ  LPSURYHVGULYLQJVWDELOLW\ZKHQ
0DLQWDLQVWHDG\SUHVVXUHRQWKH QHFHVVDU\UHJDUGOHVVRIWKHW\SHRI
EUDNHSHGDOIRUDVORQJDVIXOOEUDNLQJ URDGVXUIDFHRUW\UHJULS,WDOVR
LVUHTXLUHG0D[LPXPEUDNHIRUFHLV SUHYHQWVWKHGULYLQJZKHHOVIURP
DXWRPDWLFDOO\UHGXFHGZKHQWKH VSLQQLQJ
EUDNHSHGDOLVUHOHDVHG $VVRRQDVWKHYHKLFOHVWDUWVWR
VZHUYH XQGHUVWHHURYHUVWHHU WKH
HQJLQHRXWSXWLVUHGXFHGDQGWKH
ZKHHOVDUHEUDNHGLQGLYLGXDOO\7KLV
$OZD\VDSSO\SDUNLQJEUDNHILUPO\ FRQVLGHUDEO\LPSURYHVWKHGULYLQJ
ZLWKRXWRSHUDWLQJWKHUHOHDVHEXWWRQ VWDELOLW\RIWKHYHKLFOHRQVOLSSHU\URDG
DQGDSSO\DVILUPO\DVSRVVLEOHRQ VXUIDFHV
DGRZQKLOORUXSKLOOVORSH (6&LVRSHUDWLRQDODVVRRQDVWKH
7RUHOHDVHWKHSDUNLQJEUDNHSXOOWKH FRQWUROLQGLFDWRUEH[WLQJXLVKHV
OHYHUXSVOLJKWO\SUHVVWKHUHOHDVH :KHQ(6&LVDFWLYHEIODVKHV
EXWWRQDQGIXOO\ORZHUWKHOHYHU
7RUHGXFHWKHRSHUDWLQJIRUFHVRIWKH
SDUNLQJEUDNHGHSUHVVWKHIRRWEUDNH
DWWKHVDPHWLPH
&RQWUROLQGLFDWRU 
'ULYLQJDQGRSHUDWLQJ 

(6&LVUHDFWLYDWHGE\SUHVVLQJWKH 2EMHFWGHWHFWLRQ
 :DUQLQJ EEXWWRQDJDLQ
(6&LVDOVRUHDFWLYDWHGWKHQH[WWLPH
V\VWHPV
'RQRWOHWWKLVVSHFLDOVDIHW\
IHDWXUHWHPSW\RXLQWRWDNLQJULVNV WKHLJQLWLRQLVVZLWFKHGRQ
3DUNLQJDVVLVW
ZKHQGULYLQJ :KHQWKH(6&V\VWHPLVDFWLYHO\
$GDSWVSHHGWRWKHURDG LPSURYLQJWKHVWDELOLOW\RIWKHYHKLFOH
FRQGLWLRQV UHGXFHVSHHGDQGSD\H[WUDDWWHQWLRQ
WRWKHURDGFRQGLWLRQ7KH(6&
&RQWUROLQGLFDWRUE  V\VWHPLVRQO\DVXSSOHPHQWDU\
GHYLFHIRUWKHYHKLFOH:KHQWKH
'HDFWLYDWLRQ YHKLFOHH[FHHGVLWVSK\VLFDOOLPLWVLW
FDQQRORQJHUEHFRQWUROOHG
7KHUHIRUHGRQRWUHO\RQWKLVV\VWHP
.HHSGULYLQJVDIHO\

7KHSDUNLQJDVVLVWV\VWHPDVVLVWVWKH
GULYHUGXULQJEDFNZDUGPRYHPHQWRI
WKHYHKLFOHE\FKLPLQJLIDQ\REMHFWLV
VHQVHGEHKLQGWKHYHKLFOH
7KLVV\VWHPFDQEHWXUQHGRQ
DXWRPDWLFDOO\ZKHQHYHUWKHLJQLWLRQ
VZLWFKLV21DQGWKHWUDQVD[OH
V
)RUYHU\KLJKSHUIRUPDQFHGULYLQJ VHOHFWRUOHYHULVLQ5
5
(6&FDQEHGHDFWLYDWHGSUHVVLQJWKH
EEXWWRQ
&RQWUROLQGLFDWRUDLOOXPLQDWHV
 'ULYLQJDQGRSHUDWLQJ

7KLVV\VWHPLVGHDFWLYDWHGZKHQWKH $ODUPDQGVHQVLQJ $ODUP 'RQRWSXVKRUVFUDWFKWKHVXUIDFH


YHKLFOH
VVSHHGLVJUHDWHUWKDQ GLVWDQFH VRXQG RIWKHVHQVRU7KLVZLOOOLNHO\
DSSUR[LPDWHO\NPK GDPDJHWKHFRYHULQJ
,IWKHDODUPVRXQGVZKHQVKLIWLQJWKH VW$ODUP EHHS
EHHS 7KHUHLVDFKDQFHRIPDOIXQFWLRQ
JHDUWR55SRVLWLRQWKLVLQGLFDWHV DSSUR[aPIURP
RIWKHSDUNLQJDVVLVWV\VWHPZKHQ
QRUPDOFRQGLWLRQ WKHUHDUEXPSHU
GULYLQJRQXQHYHQVXUIDFHVVXFK
$WWKLVWLPH\RXFDQILJXUHRXWWKH QG$ODUP EHHS DVZRRGVJUDYHOURDGVMDJJHG
GLVWDQFHEHWZHHQ\RXUYHKLFOHDQG URDGVRUVORSHV
DSSUR[ZLWKLQFPIURP EHHS
REVWDFOHVZLWKWKHDODUPLQJVRXQG EHHS 7KHSDUNLQJDVVLVWV\VWHPPLJKW
WKHUHDUEXPSHU
+RZHYHUGRQRWFRQIXVHZLWKWKH EHHS QRWUHFRJQL]HVKDUSREMHFWVWKLFN
VRXQGWKDWFRQWLQXHVZKHQWKH ZLQWHUFORWKHVRURWKHUWKLFNDQG
UG$ODUP $ODUP
REVWDFOHVDUHZLWKLQFP VRIWPDWHULDOVFRXOGDEVRUEWKH
DSSUR[aFPIURP VWD\VRQ
IUHTXHQF\
&DXWLRQ WKHUHDUEXPSHU

,IWKHIROORZLQJKDSSHQVWKLV
LQGLFDWHVWKDWWKHUHLV
&DXWLRQ
DPDOIXQFWLRQLQWKHSDUNLQJDVVLVW
7KHSDUNLQJDVVLVWV\VWHPVKRXOG
V\VWHP7KHDODUPVRXQGVWLPHV
RQO\EHFRQVLGHUHGDV
FRQWLQXRVO\ZKHQWKHUHDUHQR
DVXSSOHPHQWDU\IXQFWLRQ7KH
REVWDFOHVDURXQGWKHUHDUEXPSHU
GULYHUPXVWFKHFNWKHUHDU
&RQVXOWDZRUNVKRSDVVRRQDV
SRVVLEOH:HUHFRPPHQG\RXU 7KHDXGLEOHZDUQLQJVLJQDOFDQEH
DXWKRUL]HGZRUNVKRS GLIIHUHQWGHSHQGLQJRQWKHREMHFWV
7KHDXGLEOHZDUQLQJVLJQDOPLJKW
QRWDFWLYDWHLQFDVHWKHVHQVRULV
IUR]HQRUVWDLQHGZLWKGLUWRUPXG
'ULYLQJDQGRSHUDWLQJ 

&DXWLRQ &DXWLRQ )XHO


:KHQUHFHLYLQJRWKHUXOWUDVRQLF 7KHXSSHUSRUWLRQRIWKHYHKLFOH )XHOIRUSHWUROHQJLQHV
VLJQDOV PHWDOVRXQGRUDLUEUDNLQJ FDQEHKLWEHIRUHVHQVRU 2QO\XVHXQOHDGHGIXHOWKDWFRPSOLHV
QRLVHVIURPKHDY\FRPPHUFLDO RSHUDWLRQVRFKHFNZLWKRXWVLGH ZLWK',1(1
YHKLFOHV WKHSDUNLQJDVVLVW UHDUYLHZPLUURUVRUE\WXUQLQJ\RXU
(TXLYDOHQWVWDQGDUGLVHGIXHOVZLWKDQ
V\VWHPPD\QRWZRUNSURSHUO\ KHDGGXULQJSDUNLQJ
HWKDQROFRQWHQWRIPD[E\
&OHDQGLUW\VHQVRUVZLWKDVRIW 7KHSDUNLQJDVVLVWV\VWHPZLOOEH YROXPHPD\EHXVHG
VSRQJHDQGFOHDQZDWHU RSHUDWHGFRUUHFWO\RQYHUWLFDOO\IODW
8VHIXHOZLWKWKHUHFRPPHQGHG
6XFKREMHFWVPD\QRWEHGHWHFWHG VXUIDFHV
RFWDQHUDWLQJ 8VHRIIXHOZLWK
E\WKHV\VWHPDWYHU\FORVHUDQJH WRRORZDQRFWDQHUDWLQJFDQUHGXFH
DSSUR[LPDWHO\FP DQG HQJLQHSRZHUDQGWRUTXHDQGVOLJKWO\
GLVWDQFHZLWKLQDSSUR[LPDWHO\P LQFUHDVHVIXHOFRQVXPSWLRQ
<RXVKRXOGFRQWLQXHWRNHHS
ZDWFKLQJWKHPLUURUVRUWXUQLQJ &DXWLRQ
\RXUKHDGEDFNZDUGV1RUPDO
SUHFDXWLRQVZKHQUHYHUVLQJ 8VHRIIXHOZLWKWRRORZDQRFWDQH
VKRXOGEHPDLQWDLQHG'RQRW UDWLQJFRXOGOHDGWRXQFRQWUROOHG
SUHVVRUVKRFNWKHVHQVRUVE\ FRPEXVWLRQDQGHQJLQHGDPDJH
KLWWLQJRUKLJKSUHVVXUHZDWHUJXQ
ZKLOHZDVKLQJRUWKHVHQVRUVZLOO
EHGDPDJHG
 'ULYLQJDQGRSHUDWLQJ

5HIXHOOLQJ %HVXUHWRXVHWKHFRUUHFWIXHO )XHOLVIODPPDEOHDQGH[SORVLYH


SHWURORUGLHVHO FRUUHVSRQGLQJWR 1RVPRNLQJ1RQDNHGIODPHVRU
\RXUYHKLFOHZKHQUHIXHOLQJ,I\RX VSDUNV)ROORZWKHRSHUDWLQJDQG
ILOOSHWUROLQ\RXUGLHVHOSRZHUHG VDIHW\LQVWUXFWLRQVRIWKHILOOLQJ
YHKLFOH\RXUYHKLFOHFDQEH VWDWLRQZKHQUHIXHOOLQJ
VHULRXVO\GDPDJHG,I\RXYHKLFOH 5HPRYHVWDWLFHOHFWULFLW\RQ\RXU
KDVGLHVHOHQJLQH\RXFDQFRQILUP KDQGVE\WRXFKLQJVRPHWKLQJDEOH
WKHFRUUHFWIXHOE\WDNLQJDORRNDW WRUHOHDVHVWDWLFHOHFWULFLW\ZKHQ
LQIRUPDWLRQRQWKHIXHOILOOHUFDS WRXFKLQJRURSHQLQJIXHOFDSRU
)RUVDIHW\UHDVRQVIXHO UHIXHOOLQJQR]]OH
FRQWDLQHUVSXPSVDQGKRVHV 'RQ
WGRDQ\DFWLRQVJHQHUDWLQJ
PXVWEHSURSHUO\HDUWKHG6WDWLF VWDWLFHOHFWULFLW\OLNHJHWWLQJRQDQG
HOHFWULFLW\EXLOGXSFDQLJQLWHWKH RIIYHKLFOHZKHQUHIXHOOLQJ6WDWLF
JDVROLQHYDSRU<RXFDQEHEXUQW HOHFWULFLW\FRXOGLJQLWHIXHOYDSRUV
DQG\RXUYHKLFOHGDPDJHG
&DXWLRQ ,I\RXFDQVPHOOIXHOLQ\RXU
YHKLFOHKDYHWKHFDXVHRIWKLV
,I\RXXVHLQDSSURSULDWHJUDGHIXHO  'DQJHU UHPHGLHGLPPHGLDWHO\E\
RUSXWLQFRUUHFWIXHODGGLWLYHVLQWR DZRUNVKRS
WKHIXHOWDQNWKHHQJLQHDQG %HIRUHUHIXHOOLQJVZLWFKRIIHQJLQH
FDWDO\WLFFRQYHUWHUPD\VHULRXVO\ DQGDQ\H[WHUQDOKHDWHUVZLWK
EHGDPDJHG FRPEXVWLRQFKDPEHUV6ZLWFKRII
DQ\PRELOHSKRQHV
(OHFWURPDJQHWLFZDYHVRU
FXUUHQF\RIPRELOHSKRQHVFRXOG
LJQLWHIXHOYDSRUV
'ULYLQJDQGRSHUDWLQJ 

&DXWLRQ
:LSHRIIDQ\RYHUIORZLQJIXHO
LPPHGLDWHO\

 6WRSWKHHQJLQH  5HPRYHWKHFDS7KHFDSLV
 3XOOXSWKHIXHOILOOHUGRRUUHOHDVH WHWKHUHGWRWKHYHKLFOH
OHYHUORFDWHGRQWKHIORRUULJKW  $IWHUUHIXHOOLQJUHSODFHFDS7XUQ
IURQWVLGHRIGULYHU
VVHDW LWFORFNZLVHXQWLO\RXKHDUVHYHUDO
 7XUQWKHIXHOILOOHUFDS FOLFNV
FRXQWHUFORFNZLVHVORZO\,I  3XVKWKHIXHOILOOHUGRRUFORVHG
DKLVVLQJVRXQGLVKHDUGZDLWIRU XQWLOLWODWFKHV
LWWRVWRSEHIRUHFRPSOHWHO\ 1RWH
XQVFUHZLQJWKHFDS7KHIXHOILOOHU ,ILQFROGZHDWKHUWKHIXHOILOOHUGRRU
GRRULVLQWKHULJKWUHDUTXDUWHU GRHVQRWRSHQWDSWKHGRRUOLJKWO\
SDQHO 7KHQWU\WRRSHQLWDJDLQ
 9HKLFOHFDUH

9HKLFOHFDUH *HQHUDO,QIRUPDWLRQ 9HKLFOHVWRUDJH


$FFHVVRULHVDQGYHKLFOH 6WRUDJHIRUDORQJSHULRGRIWLPH
)ROORZLQJPXVWEHGRQHLIWKHYHKLFOH
*HQHUDO,QIRUPDWLRQ   PRGLILFDWLRQV VKRXOGEHVWRUHGIRUVHYHUDOPRQWKV
9HKLFOHFKHFNV   :HUHFRPPHQGWRXVHJHQXLQH3DUWV
࿢ :DVKDQGZD[WKHYHKLFOH
DQG$FFHVVRULHVDQGIDFWRU\
%XOEUHSODFHPHQW   ࿢ +DYHWKHZD[LQWKHHQJLQH
DSSURYHGSDUWVVSHFLILFIRU\RXU
(OHFWULFDOV\VWHP   YHKLFOHW\SH:HFDQQRWDVVHVVRU FRPSDUWPHQWDQGXQGHUERG\
9HKLFOHWRROV   JXDUDQWHHUHOLDELOLW\RIRWKHUSURGXFWV FKHFNHG
:KHHOVDQGW\UHV   HYHQLIWKH\KDYHDUHJXODWRU\RU ࿢ )LOOXSIXHOWDQNFRPSOHWHO\
RWKHUZLVHJUDQWHGDSSURYDO ࿢ &OHDQDQGSUHVHUYHUXEEHUVHDOV
-XPSVWDUWLQJ  
'RQRWPDNHDQ\PRGLILFDWLRQVWRWKH ࿢ &KDQJHHQJLQHRLO
7RZLQJ   HOHFWULFDOV\VWHPHJFKDQJHVRI
$SSHDUDQFHFDUH   HOHFWURQLFFRQWUROXQLWV FKLSWXQLQJ  ࿢ 'UDLQZDVKHUIOXLGUHVHUYRLU
࿢ &KHFNFRRODQWDQWLIUHH]HDQG
&DXWLRQ FRUURVLRQSURWHFWLRQ
࿢ $GMXVWW\UHSUHVVXUHWRWKHYDOXH
1HYHUPRGLI\\RXUYHKLFOH,WPD\ VSHFLILHGIRUIXOOORDG
DIIHFWWKHSHUIRUPDQFHGXUDELOLW\
࿢ 3DUNYHKLFOHLQGU\ZHOOYHQWLODWHG
DQGVDIHW\RIWKHYHKLFOHDQGWKH
SODFH(QJDJHILUVWRUUHYHUVHJHDU
ZDUUDQWPD\QRWFRYHUDQ\
3UHYHQWWKHYHKLFOHIURPUROOLQJ
SUREOHPVFDXVHGE\WKH
PRGLILFDWLRQ ࿢ 'RQRWDSSO\WKHSDUNLQJEUDNH
࿢ 2SHQERQQHWFORVHDOOGRRUVDQG
ORFNWKHYHKLFOH
9HKLFOHFDUH 

࿢ 'LVFRQQHFWWKHFODPSIURPWKH (QGRIOLIHYHKLFOH 9HKLFOHFKHFNV


QHJDWLYHWHUPLQDORIWKHYHKLFOH
EDWWHU\%HZDUHWKDWDOOV\VWHPVDUH UHFRYHU\
QRWIXQFWLRQDOHJDQWLWKHIWDODUP ,QIRUPDWLRQRQHQGRIOLIHYHKLFOH
3HUIRUPLQJZRUN
V\VWHP UHFRYHU\FHQWUHVDQGWKHUHF\FOLQJRI
࿢ &ORVHWKHERQQHW HQGRIOLIHYHKLFOHVLVDYDLODEOHRQRXU
ZHEVLWH2QO\HQWUXVWWKLVZRUNWRDQ
3XWWLQJEDFNLQWRRSHUDWLRQ DXWKRULVHGUHF\FOLQJFHQWUH
:KHQWKHYHKLFOHLVWREHSXWEDFNLQWR
RSHUDWLRQ
࿢ &RQQHFWWKHFODPSWRWKHQHJDWLYH
WHUPLQDORIWKHYHKLFOHEDWWHU\
$FWLYDWHWKHHOHFWURQLFVRIWKH
SRZHUZLQGRZV
࿢ &KHFNW\UHSUHVVXUH
࿢ )LOOXSWKHZDVKHUIOXLGUHVHUYRLU
࿢ &KHFNWKHHQJLQHRLOOHYHO  :DUQLQJ
࿢ &KHFNWKHFRRODQWOHYHO
2QO\SHUIRUPHQJLQHFRPSDUWPHQW
࿢ )LWWKHQXPEHUSODWHLIQHFHVVDU\ FKHFNVZKHQWKHLJQLWLRQLVRII
7KHFRROLQJIDQPD\VWDUW
RSHUDWLQJHYHQLIWKHLJQLWLRQLVRII
 9HKLFOHFDUH

 'DQJHU
7KHLJQLWLRQV\VWHPXVHV
H[WUHPHO\KLJKYROWDJH'RQRW
WRXFK

%RQQHW
2SHQLQJ

 3XVKWKHVDIHW\FDWFKXSDQG  3XOOXSWKHVXSSRUWURGOLJKWO\IURP
RSHQWKHERQQHW WKHKROGHU$QGWKHQVHFXUHLWDW
WKHOHIWVLGHKRRNRIWKHHQJLQH
 :DUQLQJ FRPSDUWPHQW

2QO\WRXFKWKHIRDPSDGGLQJRI &ORVLQJ
WKHERQQHWVXSSRUWURGKDQGOH %HIRUHFORVLQJWKHERQQHWSUHVVWKH
ZKHQWKHHQJLQHLVKRW VXSSRUWLQWRWKHKROGHU
/RZHUWKHERQQHWDQGDOORZLWWRGURS
LQWRWKHFDWFK&KHFNWKDWWKHERQQHW
 3XOOWKHUHOHDVHOHYHUDQGUHWXUQLW LVHQJDJHG
WRLWVRULJLQDOSRVLWLRQ
9HKLFOHFDUH 

 :DUQLQJ
$OZD\VREVHUYHWKHIROORZLQJ
SUHFDXWLRQV3XOORQWKHIURQWHGJH
RIWKHERQQHWWRPDNHVXUHLWLV
ODWFKHGVHFXUHO\EHIRUH\RXGULYH
\RXUYHKLFOH
'RQRWSXOOWKHERQQHWUHOHDVH
KDQGOHZKLOH\RXUYHKLFOHLV
PRYLQJ
'RQRWPRYH\RXUYHKLFOHZLWKWKH
ERQQHWRSHQ$QRSHQERQQHWZLOO
REVFXUHWKHGULYHUಫVYLVLRQ
2SHUDWLQJ\RXUYHKLFOHZLWKWKH
ERQQHWRSHQFDQOHDGWRDFROOLVLRQ
UHVXOWLQJLQGDPDJHWR\RXU
YHKLFOHWRRWKHUSURSHUW\SHUVRQDO
LQMXU\RUHYHQGHDWK
 9HKLFOHFDUH

(QJLQHFRPSDUWPHQWRYHUYLHZ
3HWUROHQJLQH
9HKLFOHFDUH 

 (QJLQHFRRODQWFRQWDLQHU :HUHFRPPHQGWKHXVHRIWKHVDPH
 (QJLQHRLOFDS JUDGHRIHQJLQHRLOWKDWZDVXVHGDW
ODVWFKDQJH
 %UDNHIOXLGFRQWDLQHU
7KHHQJLQHRLOOHYHOPXVWQRWH[FHHG
 %DWWHU\ WKH0
0$;PDUNRQWKHGLSVWLFN
 )XVHEORFN
 (QJLQHDLUILOWHU
 'LSVWLFNIRUHQJLQHRLOOHYHO
 :DVKHUIOXLGFRQWDLQHU
 3RZHUVWHHULQJIOXLGFRQWDLQHU
 $XWRPDWLFWUDQVPLVVLRQIOXLGOHYHO
GLSVWLFN :KHQWKHHQJLQHRLOOHYHOKDV
GURSSHGWRWKH0
0,1PDUNWRSXS
HQJLQHRLO
(QJLQHRLO
,WLVDGYLVDEOHWRFKHFNWKHHQJLQHRLO
OHYHOPDQXDOO\EHIRUHHPEDUNLQJRQ
DORQJMRXUQH\ 7KHHQJLQHRLOILOOHUFDSLVORFDWHGRQ
&KHFNZLWKWKHYHKLFOHRQDOHYHO WKHFDPVKDIWFRYHU
VXUIDFH7KHHQJLQHPXVWEHDW
RSHUDWLQJWHPSHUDWXUHDQGVZLWFKHG &DXWLRQ
RIIIRUDWOHDVWPLQXWHV
2YHUILOOHGHQJLQHRLOPXVWEH
3XOORXWWKHGLSVWLFNZLSHLWFOHDQ GUDLQHGRUVXFWLRQHGRXW
LQVHUWLWWRWKHVWRSRQWKHKDQGOHSXOO
RXWDQGUHDGWKHHQJLQHRLOOHYHO
&DSDFLWLHVDQG9LVFRVLW\ 
,QVHUWGLSVWLFNWRWKHVWRSRQWKH 
KDQGOHDQGPDNHKDOIDWXUQ
 9HKLFOHFDUH

7KHIOXLGOHYHOPXVWEHFKHFNHGZLWK
 :DUQLQJ WKHHQJLQHUXQQLQJDQGWKHVHOHFWRU &DXWLRQ
OHYHULQ3 3DUN 7KHYHKLFOHPXVWEH
(QJLQHRLOLVDQLUULWDQWDQGLI XSWRQRUPDORSHUDWLQJWHPSHUDWXUH 7DNHFDUHQRWWROHWGLUWRUIRUHLJQ
LQJHVWHGFDQFDXVHLOOQHVVRU DQGSDUNHGRQOHYHOJURXQG PDWHULDOVFRQWDPLQDWHWKH
GHDWK WUDQVPLVVLRQIOXLG
7KHQRUPDORSHUDWLQJWHPSHUDWXUHIRU
.HHSRXWRIUHDFKRIFKLOGUHQ WKHIOXLG ¡&a¡& ZLOOEHUHDFKHG &RQWDPLQDWHGIOXLGFDQFDXVH
$YRLGUHSHDWHGRUSURORQJHG DIWHUGULYLQJ DVHYHUHPDOIXQFWLRQRIWKH
FRQWDFWZLWKVNLQ DXWRPDWLFWUDQVPLVVLRQOHDGLQJWR
&KHFNLQJDXWRPDWLF FRVWO\UHSDLUV
:DVKH[SRVHGDUHDVZLWKVRDS
DQGZDWHURUKDQGFOHDQHU WUDQVPLVVLRQIOXLGOHYHO
%HYHU\FDUHIXOZKHQGUDLQLQJWKH ,IWKHIOXLGLVFRQWDPLQDWHGRU
HQJLQHRLODVLWPD\EHKRWHQRXJK GLVFRORUHGDIWHULQVSHFWLRQFKDQJH
WREXUQ\RX WKHDXWRPDWLFWUDQVPLVVLRQIOXLG
8VHRQO\WKHIOXLGVSHFLILHGLQWKHIOXLG
$XWRPDWLFWUDQVPLVVLRQ FKDUWLQWKLVPDQXDO
'HFUHDVHLQWKHIOXLGOHYHOLQGLFDWHV
IOXLG DOHDNLQWKHDXWRPDWLFWUDQVPLVVLRQ
7RHQVXUHSURSHUIXQFWLRQLQJ ,IQRWHGFRQVXOWDZRUNVKRSWRUHSDLU
HIILFLHQF\DQGGXUDELOLW\RIWKH WKHSUREOHPDVVRRQDVSRVVLEOH:H
DXWRPDWLFWUDQVPLVVLRQEHVXUHWR UHFRPPHQG\RXUDXWKRULVHG
NHHSWKHWUDQVPLVVLRQIOXLGDWWKH ZRUNVKRS
SURSHUOHYHO7RRPXFKRUWRROLWWOH
IOXLGFDQFDXVHSUREOHPV  6WDUWWKHHQJLQH
 :DUPXSXQWLOWKHWHPSHUDWXUHRI
WKHDXWRPDWLFWUDQVPLVVLRQIOXLG
UHDFKHVDSSUR[LPDWHO\¡&
a¡&
9HKLFOHFDUH 

 0RYHWKHVHOHFWRUOHYHUIURP3
WRDQGUHWXUQWR3:DLWDIHZ &DXWLRQ
VHFRQGVDWHDFKVHOHFWHGSRVLWLRQ
XQWLOWKHVHOHFWHGJHDUVDUHIXOO\ 7RRPXFKIOXLGZLOOGHFUHDVH
HQJDJHG YHKLFOHSHUIRUPDQFH
 3XOORXWWKHGLSVWLFNDQGZLSHLW 'RQRWRYHUILOOWKHDXWRPDWLF
FOHDQ WUDQVPLVVLRQIOXLG
 5HLQVHUWWKHGLSVWLFNFRPSOHWHO\ 7KLVFDQGDPDJHWKH
$WWKLVWLPHLWVKRXOGQRWFRQWDFW WUDQVPLVVLRQ
ZLWKDQ\RWKHUSDUWV
 3XOOWKHGLSVWLFNRXWDJDLQ
 &KHFNWKHRLORQWKHGLSVWLFNWR  &KHFNWKHRLOOHYHO2LOVKRXOGEH
PDNHVXUHLWLVQRWFRQWDPLQDWHG EHWZHHQ0,1DQG0$;PDUNRQ
WKHGLSVWLFNDVVKRZQLQWKH
&DXWLRQ LOOXVWUDWLRQ
 ,IWKHRLOOHYHOLVEHORZ0,1DGG
5HLQVHUWWKHGLSVWLFNFRPSOHWHO\ HQRXJK$7)WRUDLVHWKHRLOOHYHO
$WWKLVWLPHLWVKRXOGQRWFRQWDFW WR0$;'RQRWILOORYHU0$;PDUN
ZLWKDQ\RWKHUSDUWV
 9HKLFOHFDUH

(QJLQHDLUILOWHU &DXWLRQ
&RRODQWOHYHO

7KHHQJLQHQHHGVFOHDQDLUWR &DXWLRQ
RSHUDWHSURSHUO\
7RRORZDFRRODQWOHYHOFDQFDXVH
'RQRWRSHUDWH\RXUYHKLFOH HQJLQHGDPDJH
ZLWKRXWWKHDLUFOHDQHUHOHPHQW
LQVWDOOHG
'ULYLQJZLWKRXWWKHDLUFOHDQHU
HOHPHQWSURSHUO\LQVWDOOHGFDQ
GDPDJH\RXUHQJLQH

(QJLQHFRRODQW
,QFRXQWULHVZLWKPRGHUDWHFOLPDWH
 /RRVHQWKHDLUILOWHUFRYHU WKHFRRODQWSURYLGHVIUHH]HSURWHFWLRQ
DWWDFKLQJFOLSVDQGRSHQWKH GRZQWRDSSUR[¡&
FRYHU
,QFRXQWULHVZLWKFROGFOLPDWHWKH
 5HSODFHWKHDLUILOWHU FRRODQWSURYLGHVIUHH]HSURWHFWLRQ
 /RFNWKHFRYHUZLWKWKHFRYHU GRZQWRDSSUR[¡&
DWWDFKLQJFOLSV ,IWKHFRROLQJV\VWHPLVFROGWKH
0DLQWDLQDVXIILFLHQWFRQFHQWUDWLRQRI FRRODQWOHYHOVKRXOGEHDERYHWKH
DQWLIUHH]H ILOOLQJOLQHPDUN7RSXSLIWKHOHYHOLV
ORZ
&DXWLRQ
2QO\XVHDSSURYHGDQWLIUHH]H
9HKLFOHFDUH 

 :DUQLQJ &DXWLRQ &DXWLRQ


$OORZWKHHQJLQHWRFRROEHIRUH 3ODLQZDWHURUWKHZURQJPL[WXUH ,WLVQRWQHHGHGWRDGGFRRODQW
RSHQLQJWKHFDS&DUHIXOO\RSHQ FDQGDPDJHWKHFRROLQJV\VWHP PRUHIUHTXHQWO\WKDQWKH
WKHFDSUHOLHYLQJWKHSUHVVXUH 'RQRWXVHSODLQZDWHUDOFRKRORU UHFRPPHQGHGLQWHUYDO
VORZO\ PHWKDQRODQWLIUHH]HLQFRRODQW ,I\RXDUHDGGLQJFRRODQWRIWHQ
V\VWHP WKLVPD\EHDVLJQWKDW\RXUHQJLQH
)LOOXSZLWKDPL[WXUHRIGHPLQHUDOLVHG QHHGVPDLQWHQDQFH
ZDWHUDQGDQWLIUHH]HDSSURYHGIRU 7KHHQJLQHPD\RYHUKHDWRUHYHQ
WKHYHKLFOH,QVWDOOWKHFDSWLJKWO\ FDWFKILUH &RQWDFWDZRUNVKRSIRUDFKHFNRI
+DYHWKHDQWLIUHH]HFRQFHQWUDWLRQ WKHFRROLQJV\VWHP
FKHFNHGDQGKDYHWKHFDXVHRIWKH &DXWLRQ :HUHFRPPHQGWKDW\RXFRQVXOW
FRRODQWORVVUHPHGLHGE\DZRUNVKRS \RXUDXWKRUL]HGZRUNVKRS
1RWH &RRODQWFDQEHKD]DUGRXV
,IWKHFRRODQWOHYHOIDOOVEHORZWKHOLQH PDWHULDO 3RZHUVWHHULQJIOXLG
PDUNUHILOOWKHUDGLDWRUZLWK $YRLGUHSHDWHGRUSURORQJHG
PL[RIGHPLQHUDOL]HGZDWHUDQG FRQWDFWZLWKFRRODQW
SKRVSKDWHDQWLIUHH]H &OHDQ\RXUVNLQDQGQDLOVZLWK
,QRUGHUWRSURWHFW\RXUYHKLFOHLQ VRDSDQGZDWHUDIWHUFRPLQJLQ
H[WUHPHO\FROGZHDWKHUXVHDPL[RI FRQWDFWZLWKFRRODQW
SHUFHQWZDWHUDQGSHUFHQW .HHSRXWRIUHDFKRIFKLOGUHQ
DQWLIUHH]H
&RRODQWFDQLUULWDWHWKHVNLQDQG
FDQFDXVHLOOQHVVRUGHDWKLI
VZDOORZHG
 9HKLFOHFDUH

2SHQWKHFDSDQGUHPRYHLW )LOOZLWKFOHDQZDWHUPL[HGZLWK
 :DUQLQJ DVXLWDEOHTXDQWLW\RIZDVKHUIOXLG
7KHSRZHUVWHHULQJIOXLGOHYHOPXVWEH
EHWZHHQWKH0 0,1DQGWKH00$;PDUNV ZKLFKFRQWDLQVDQWLIUHH]H)RUWKH
$QRYHUIORZRIWKHIOXLGPD\FDXVH FRUUHFWPL[LQJUDWLRUHIHUWRWKH
)LOOXSLIWKHOHYHOLVORZ WKHIOXLGWREXUQRUGLVFRORXU ZDVKHUIOXLGFRQWDLQHU
SDLQWZRUN
&DXWLRQ 'RQRWRYHUILOOWKHUHVHUYRLU &DXWLRQ
$QHQJLQHILUHFDQFDXVHSHUVRQDO
([WUHPHO\VPDOODPRXQWVRI 2QO\ZDVKHUIOXLGZLWKDVXIILFLHQW
LQMXULHVDQGGDPDJH\RXUYHKLFOH
FRQWDPLQDWLRQFDQFDXVHVWHHULQJ DQWLIUHH]HFRQFHQWUDWLRQSURYLGHV
DQGRWKHUSURSHUW\
V\VWHPGDPDJHDQGFDXVHLWWRQRW SURWHFWLRQDWORZWHPSHUDWXUHVRU
ZRUNSURSHUO\'RQRWDOORZ DVXGGHQGURSLQWHPSHUDWXUH
FRQWDPLQDWHVWRFRQWDFWWKHIOXLG :DVKHUIOXLG
VLGHRIWKHUHVHUYRLUFDSGLSVWLFNRU 7RUHILOOZLQGVFUHHQZDVKHUIOXLG
IURPHQWHULQJWKHUHVHUYRLU UHVHUYRLU
࿢ 8VHRQO\FRPPHUFLDOO\DYDLODEOH
&DXWLRQ UHDG\WRXVHZDVKHUIOXLGIRUWKDW
SXUSRVH
'RQRWRSHUDWHYHKLFOHZLWKRXWWKH ࿢ 'RQRWXVHWDSZDWHU0LQHUDOV
UHTXLUHGDPRXQWRISRZHUVWHHULQJ SUHVHQWLQWDSZDWHUPD\SOXJWKH
IOXLG ZLQGVFUHHQZDVKHUOLQHV
7RGRVRFDQGDPDJHWKHSRZHU ࿢ ,IDLUWHPSHUDWXUHLVOLNHO\WRJR
VWHHULQJV\VWHPRI\RXUYHKLFOH EHORZWKHIUHH]LQJSRLQWXVH
OHDGLQJWRFRVWO\UHSDLUV ZDVKHUIOXLGZKLFKKDVVXIILFLHQW
DQWLIUHH]LQJSURSHUW\
9HKLFOHFDUH 

%UDNHIOXLG 2QO\XVHEUDNHIOXLGDSSURYHGIRUWKH
YHKLFOH%UDNHDQGFOXWFKIOXLG &DXWLRQ

 :DUQLQJ 'RQRWGLVSRVHRIXVHGEUDNHIOXLG
ZLWK\RXUKRXVHKROGZDVWH
%UDNHIOXLGLVSRLVRQRXVDQG &DXWLRQ
8VH\RXUORFDODXWKRUL]HGZDVWH
FRUURVLYH$YRLGFRQWDFWZLWKH\HV
0DNHVXUH\RXWKRURXJKO\FOHDQ PDQDJHPHQWIDFLOLW\
VNLQIDEULFVDQGSDLQWHGVXUIDFHV
DURXQGWKHEUDNHIOXLGUHVHUYRLU 8VHGEUDNHIOXLGDQGWKHLU
FDSEHIRUHUHPRYLQJWKHFDS FRQWDLQHUVDUHKD]DUGRXV7KH\
&RQWDPLQDWLRQRIWKHEUDNHIOXLG FDQGDPDJH\RXUKHDOWKDQGWKH
V\VWHPFDQDIIHFWV\VWHP HQYLURQPHQW
SHUIRUPDQFHOHDGLQJWRFRVWO\ %UDNHIOXLGLVKDUVKDQGFDQLUULWDWH
UHSDLUV VNLQDQGH\HV
$QRYHUIORZRIEUDNHIOXLGRQWKH 'RQRWDOORZWKHEUDNHIOXLGWR
HQJLQHPD\FDXVHWKHIOXLGWR FRQWDFW\RXUVNLQRUH\HV,ILW
EXUQ GRHVLPPHGLDWHO\ZDVKWKH
'RQRWRYHUILOOWKHUHVHUYRLU DIIHFWHGDUHDWKRURXJKO\ZLWKVRDS
DQGZDWHURUKDQGFOHDQHU
$QHQJLQHILUHFDQFDXVHSHUVRQDO
LQMXULHVDQGGDPDJH\RXUYHKLFOH
DQGRWKHUSURSHUW\ %DWWHU\
7KHEUDNHIOXLGOHYHOPXVWEHEHWZHHQ 7KHYHKLFOHEDWWHU\LVPDLQWHQDQFH
WKH0
0,1DQGWKH0 0$;PDUNV IUHHSURYLGHGWKDWWKHGULYLQJSURILOH
:KHQWRSSLQJXSHQVXUHPD[LPXP DOORZVVXIILFLHQWFKDUJLQJRIWKH
FOHDQOLQHVVDVFRQWDPLQDWLRQRIWKH EDWWHU\6KRUWGLVWDQFHGULYLQJDQG
EUDNHIOXLGFDQOHDGWREUDNHV\VWHP IUHTXHQWHQJLQHVWDUWVFDQGLVFKDUJH
PDOIXQFWLRQV+DYHWKHFDXVHRIWKH WKHEDWWHU\$YRLGWKHXVHRI
ORVVRIEUDNHIOXLGUHPHGLHGE\ XQQHFHVVDU\HOHFWULFDOFRQVXPHUV
DZRUNVKRS
 9HKLFOHFDUH

$YRLGFRQWDFWZLWKH\HVVNLQ 0HDQLQJRIV\PEROV
IDEULFVDQGSDLQWHGVXUIDFHV7KH ࿢ 1RVSDUNVQDNHGIODPHVRU
IOXLGFRQWDLQVVXOSKXULFDFLGZKLFK VPRNLQJ
FDQFDXVHLQMXULHVDQGGDPDJHLQ ࿢ $OZD\VVKLHOGH\HV([SORVLYH
WKHHYHQWRIGLUHFWFRQWDFW,QFDVH JDVHVFDQFDXVHEOLQGQHVVRU
RIVNLQFRQWDFWFOHDQWKHDUHDZLWK LQMXU\
%DWWHULHVGRQRWEHORQJLQKRXVHKROG ZDWHUDQGVHHNPHGLFDOKHOS
࿢ .HHSWKHEDWWHU\RXWRIUHDFKRI
ZDVWH7KH\PXVWEHGLVSRVHGRIDW LPPHGLDWHO\
FKLOGUHQ
DQDSSURSULDWHUHF\FOLQJFROOHFWLRQ .HHSRXWRIUHDFKRIFKLOGUHQ
SRLQW ࿢ 7KHEDWWHU\FRQWDLQVVXOIXULFDFLG
'RQRWWLOWDQRSHQEDWWHU\ ZKLFKFRXOGFDXVHEOLQGQHVVRU
/D\LQJXSWKHYHKLFOHIRUPRUHWKDQ VHULRXVEXUQLQMXULHV
ZHHNVFDQOHDGWREDWWHU\ %DWWHU\GLVFKDUJHSURWHFWLRQ 
GLVFKDUJH'LVFRQQHFWWKHFODPSIURP ࿢ 6HHWKH2ZQHUಫV0DQXDOIRUIXUWKHU
LQIRUPDWLRQ
WKHQHJDWLYHWHUPLQDORIWKHYHKLFOH :DUQLQJODEHO
EDWWHU\ ࿢ ([SORVLYHJDVPD\EHSUHVHQWLQ
(QVXUHWKHLJQLWLRQLVVZLWFKHGRII WKHYLFLQLW\RIWKHEDWWHU\
EHIRUHFRQQHFWLQJRUGLVFRQQHFWLQJ
WKHYHKLFOHEDWWHU\

 :DUQLQJ
.HHSJORZLQJPDWHULDOVDZD\IURP
WKHEDWWHU\WRDYRLGH[SORVLRQ
%DWWHU\H[SORVLRQFDQUHVXOWLQ
GDPDJHWRWKHYHKLFOHDQGVHULRXV
LQMXU\RUGHDWK
9HKLFOHFDUH 

:LSHUEODGHUHSODFHPHQW ERWKWKHZLQGVFUHHQDQGWKHEODGHV %XOEUHSODFHPHQW


ZLWKDJRRGFOHDQHURUPLOGGHWHUJHQW
5LQVHWKHPWKRURXJKO\ZLWKZDWHU
6ZLWFKRIIWKHLJQLWLRQDQGVZLWFKRII
5HSHDWWKHSURFHVVLIQHFHVVDU\ WKHUHOHYDQWVZLWFKRUFORVHWKHGRRUV
7KHUHLVQRZD\WRUHPRYHWUDFHVRI
2QO\KROGDQHZEXOEDWWKHEDVH'R
VLOLFRQHIURPJODVV7KHUHIRUHQHYHU
QRWWRXFKWKHEXOEJODVVZLWKEDUH
DSSO\SROLVKZLWKVLOLFRQHWR\RXU
KDQGV
YHKLFOHಫVZLQGVFUHHQRU\RXZLOOJHW
VWUHDNVZKLFKZLOOLPSDLUWKHGULYHUಫV 8VHRQO\WKHVDPHEXOEW\SHIRU
YLVLRQ UHSODFHPHQW
'RQRWXVHVROYHQWVJDVROLQH 5HSODFHKHDGOLJKWEXOEVIURPZLWKLQ
NHURVHQHRUSDLQWWKLQQHUWRFOHDQ WKHHQJLQHFRPSDUWPHQW
ZLSHUV7KHVHDUHKDUVKDQGFDQ 1RWH
GDPDJHWKHEODGHVDQGSDLQWHG $IWHUGULYLQJLQKHDY\UDLQRUDIWHU
/LIWZLSHUDUP3UHVVUHOHDVHOHYHU VXUIDFHV ZDVKLQJVRPHH[WHULRUOLJKWOHQVHV
DQGGHWDFKZLSHUEODGH FRXOGDSSHDUIURVW\
3URSHUO\IXQFWLRQLQJZLQGVUHHQ 7KLVFRQGLWLRQLVFDXVHGE\WKH
ZLSHUVDUHHVVHQWLDOIRUFOHDUYLVLRQ WHPSHUDWXUHGLIIHUHQFHEHWZHHQWKH
DQGVDIHGULYLQJ5HJXODUO\FKHFNWKH LQVLGHDQGRXWVLGHRIWKHOLJKW
FRQGLWLRQRIWKHZLSHUEODGHV
7KLVLVVLPLODUWRWKHFRQGHQVDWLRQ
5HSODFHKDUGEULWWOHRUFUDFNHG
RQ\RXUZLQGRZVLQVLGH\RXUYHKLFOH
EODGHVRUWKRVHWKDWVPHDUGLUWRQWKH
GXULQJWKHUDLQDQGGRHVQ
WLQGLFDWH
ZLQGVUHHQ
DSUREOHPZLWK\RXUYHKLFOH
)RUHLJQPDWHULDORQWKHZLQGVFUHHQRU
,IWKHZDWHUOHDNVLQWRWKHOLJKWEXOE
ZLSHUEODGHVFDQUHGXFHWKH
FLUFXLWU\KDYHWKHYHKLFOHFKHFNHG
HIIHFWLYHQHVVRIWKHZLSHUV,IWKH
E\\RXUDXWKRULVHGZRUNVKRS
EODGHVDUHQRWZLSLQJSURSHUO\FOHDQ
 9HKLFOHFDUH

+HDGOLJKWV  :KHQILWWLQJDQHZEXOEHQJDJH
WKHOXJVLQWKHUHFHVVHVRQWKH
/RZEHDPDQGKLJKEHDP UHIOHFWRU
 (QJDJHWKHVSULQJFOLS
 'HWDFKSOXJFRQQHFWRUIURPEXOE
 3ODFHKHDGOLJKWSURWHFWLYHFRYHU
LQSRVLWLRQDQGFORVH
 3OXJFRQQHFWRURQWREXOE
+HDGOLJKWDLPLQJ
7KHORZEHDPKHDGOLJKWDLPLQJFDQ
EHDGMXVWHGZLWKWKHVFUHZORFDWHG
DERYHWKHKHDGOLJKW
 3UHVVVSULQJFOLSGLVHQJDJHLW
&DXWLRQ
,IWKHKHDGOLJKWVQHHGWREHUH
DLPHGLWLVUHFRPPHQGHGWKDWWKH
 5HPRYHSURWHFWLYHFRYHU YHKLFOHLVWDNHQWR\RXUDXWKRULVHG
ZRUNVKRSIRUVHUYLFHEHFDXVHLWLV
UHODWHGZLWKVDIHW\

3DUNLQJOLJKWV
 'HWDFKSOXJFRQQHFWRUIURPEXOE

 5HPRYHEXOEIURPUHIOHFWRU
KRXVLQJ
9HKLFOHFDUH 

&DXWLRQ
,IWKHIRJOLJKWVQHHGWREHUH
DLPHGLWLVUHFRPPHQGHGWKDWWKH
YHKLFOHLVWDNHQWR\RXUDXWKRULVHG
ZRUNVKRSIRUVHUYLFHEHFDXVHLWLV
UHODWHGZLWKVDIHW\

)URQWWXUQVLJQDOOLJKWV

 5HPRYHSURWHFWLYHFRYHU  5HPRYHEXOEIURPVRFNHW
 ,QVHUWQHZEXOE
 ,QVHUWKROGHULQUHIOHFWRU
 3ODFHKHDGOLJKWSURWHFWLYHFRYHU
LQSRVLWLRQDQGFORVH
 3OXJFRQQHFWRURQWREXOE

)RJOLJKWV
+DYHEXOEVUHSODFHGE\DZRUNVKRS
 5RWDWHEXOEKROGHUDQWLFORFNZLVH
)RJOLJKWDLPLQJ DQGGLVHQJDJH
7KHIRJOLJKWDLPLQJFDQEHDGMXVWHG
ZLWKWKHVFUHZORFDWHGDERYHWKHIRJ
 5HPRYHVLGHOLJKWEXOEKROGHU
OLJKW
IURPUHIOHFWRU
 9HKLFOHFDUH

7DLOOLJKWV

 3XVKEXOELQWRVRFNHWVOLJKWO\  7DLOOLJKWEUDNHOLJKW 

URWDWHDQWLFORFNZLVHUHPRYHDQG 7XUQVLJQDOOLJKW 
UHQHZEXOE  8QVFUHZERWKVFUHZV
5HYHUVHOLJKW SDVVHQJHU
VVLGH 
 ,QVHUWEXOEKROGHULQUHIOHFWRU  5HPRYHWDLOOLJKWDVVHPEO\7DNH 5HDUIRJOLJKW 'ULYHU
VVLGH  

URWDWHFORFNZLVHWRHQJDJH FDUHWKDWWKHFDEOHGXFWUHPDLQVLQ
SRVLWLRQ
9HKLFOHFDUH 

 5RWDWHEXOEKROGHUDQWLFORFNZLVH 6LGHWXUQVLJQDOOLJKWV  2SHQWKHWDLOJDWH


 5HPRYHWKHWZRVFUHZVDQGWKH
 3XVKOLJKWWRZDUGVWKHEDFNRIWKH ODPSKRXVLQJ'LVFRQQHFWWKH
YHKLFOHDQGUHPRYH ZLULQJKDUQHVVFRQQHFWRUEHIRUH
 5RWDWHEXOEKROGHUDQWLFORFNZLVH UHPRYLQJWKHODPSKRXVLQJ
 3XOOEXOERXWRIWKHEXOEKROGHUDQG  5HPRYHWKHWZRVFUHZVDQGWKH
UHQHZ UHIOHFWRUDVVHPEO\
 5HLQVWDOOLQUHYHUVHRUGHU  5HPRYHWKHEXOEE\SXOOLQJLW
VWUDLJKWRXWRIWKHEXOEKROGHU
&HQWUHKLJKPRXQWHG  ,QVWDOODQHZEXOE
EUDNHOLJKW  5HLQVWDOOWKHODPSKRXVLQJ

 5HPRYHEXOEKROGHU3XVKEXOE 1XPEHUSODWHOLJKW
LQWRVRFNHWVOLJKWO\URWDWHDQWL
FORFNZLVHUHPRYHDQGUHQHZ
EXOE
 ,QVHUWEXOEKROGHULQWRWKHWDLOOLJKW
DVVHPEO\DQGVFUHZLQWRSODFH
&RQQHFWZLULQJSOXJ,QVWDOOWDLO
OLJKWDVVHPEO\LQERG\DQGWLJKWHQ
VFUHZV&ORVHFRYHUVDQG
HQJDJH
 6ZLWFKRQLJQLWLRQRSHUDWHDQG
FKHFNDOOOLJKWV
 9HKLFOHFDUH

 8QVFUHZERWKVFUHZV /RDGFRPSDUWPHQWOLJKW  5HPRYHEXOE


 5HPRYHEXOEKRXVLQJGRZQZDUG  ,QVHUWQHZEXOE
WDNLQJFDUHQRWWRSXOORQWKH  ,QVWDOOODPS
FDEOH
5RWDWHEXOEKROGHUDQWLFORFNZLVH
WRGLVHQJDJH
 5HPRYHEXOEIURPKROGHUDQG
UHQHZEXOE
 ,QVHUWEXOEKROGHULQEXOEKRXVLQJ
DQGURWDWHFORFNZLVH
 ,QVHUWEXOEKRXVLQJDQGVHFXUH
XVLQJDVFUHZGULYHU
 3ULVHWKHODPSRXWZLWK
,QWHULRUOLJKWV DVFUHZGULYHU
&RXUWHV\OLJKWV
 7RUHPRYHLWSULVHWKHRSSRVLWH
VLGHRIWKHOLJKWVZLWFKXVLQJDIODW
EODGHVFUHZGULYHU %HFDUHIXOQRW
WRPDNHVFUDWFKHV
 5HPRYHWKHEXOE
 5HSODFHWKHEXOE
 5HLQVWDOOWKHOLJKWDVVHPEO\
9HKLFOHFDUH 

(OHFWULFDOV\VWHP )XVHVPD\DOVREHLQVHUWHGZLWKRXW 7KHIXVHER[LVLQWKHHQJLQH


H[LVWHQFHRIDIXQFWLRQ FRPSDUWPHQW
)XVHV )XVHH[WUDFWRU
'LVHQJDJHWKHFRYHUOLIWLWXSZDUGV
DQGUHPRYH
'DWDRQWKHUHSODFHPHQWIXVHPXVW $IXVHH[WUDFWRUPD\EHORFDWHGLQWKH
PDWFKWKHGDWDRQWKHGHIHFWLYHIXVH IXVHER[LQWKHHQJLQHFRPSDUWPHQW 1RWH
,QDER[DERYHWKHSRVLWLYHWHUPLQDORI 1RWDOOIXVHER[GHVFULSWLRQVLQWKLV
3ODFHWKHIXVHH[WUDFWRURQWKH PDQXDOPD\DSSO\WR\RXUYHKLFOH
WKHEDWWHU\DUHVRPHPDLQIXVHV,I YDULRXVW\SHVRIIXVHIURPWKHWRSRU
QHFHVVDU\KDYHWKHPFKDQJHGE\ VLGHDQGZLWKGUDZIXVH :KHQLQVSHFWLQJWKHIXVHER[UHIHU
DZRUNVKRS WRWKHIXVHER[ODEHO
%HIRUHUHSODFLQJDIXVHWXUQRIIWKH (QJLQHFRPSDUWPHQWIXVH
UHVSHFWLYHVZLWFKDQGWKHLJQLWLRQ
$EORZQIXVHFDQEHUHFRJQLVHGE\LWV
ER[
PHOWHGZLUH'RQRWUHSODFHWKHIXVH
XQWLOWKHFDXVHRIWKHIDXOWKDVEHHQ
UHPHGLHG
6RPHIXQFWLRQVDUHSURWHFWHGE\
VHYHUDOIXVHV
 9HKLFOHFDUH
9HKLFOHFDUH 

1R &LUFXLW 1R &LUFXLW 1R &LUFXLW


 )XHOSXPS  +HDGOLJKWKLJK  +HDWHGVHDW
 3DUNLQJOLJKWUHOD\  +HDGOLJKWORZ/+  +HDWHGVHDWUHOD\
 )DQORZUHOD\  +HDGOLJKWORZ5+  (QJLQHFRQWUROPRGXOH
 )DQKLJK  6SDUHIXVH  ಥ
 $LUFRQGLWLRQ  6SDUHIXVH  6SDUHIXVH
 )DQKLJKUHOD\  ,JQLWLRQVWDUWHU
 $LUFRQGLWLRQUHOD\  ,JQLWLRQDFFHVVRU\ ,QVWUXPHQWSDQHOIXVHER[
 $%6  +D]DUGZDUQLQJIODVKHUV
 3DUN/+  +RUQ
 3DUN5+  +HDGOLJKWORZUHOD\
 )URQWIRJ  +RUQUHOD\
 )DQORZ  (QJLQHPDLQUHOD\
 $%6  ,JQLWLRQ
 )URQWIRJUHOD\  (06
 )XHOSXPSUHOD\  (06
,QWHULRUIXVHER[LVORFDWHGRQWKH
 6SDUHIXVH  ,QVWUXPHQWSDQHOEDWWHU\
XQGHUVLGHRIWKHGULYHU
VVLGH
 +HDGOLJKWKLJKUHOD\  ಥ LQVWUXPHQWSDQHO
 9HKLFOHFDUH

1R &LUFXLW 1R &LUFXLW


 5HDUGHIRJJHU  5DGLRFORFNUHPRWHNH\OHVV
HQWU\
 5HDUIRJOLJKWV
 6'0
 ,QVWUXPHQWFOXVWHU
 ಥ
 %ORZHUPRWRUFRQWUROPRGXOH
 $LUEDJ
 7KHIWGHWHUUHQWGDWDOLQN
FRQQHFWRU

1R &LUFXLW  7UDQVPLVVLRQFRQWUROPRGXOH


 5HDUSRZHUZLQGRZV
 5HDUZLSHU
 5DGLRUHPRWHNH\OHVVHQWU\
 0LUURURXWVLGHUHDUYLHZPLUURU
UHPRWHHQWU\
 +HDGOLJKW
 (QJLQHFRQWUROPRGXOH (&0 
 (OHFWULF26590 WKHIWGHWHUUHQW
 'RRUORFN  )URQWSRZHUZLQGRZV
 )URQWZLSHU  &LJDUHWWHOLJKWHU
 ಥ  %UDNHOLJKW
 5HYHUVHOLJKWV  6WDUWHU
 7XUQVLJQDOV
9HKLFOHFDUH 

9HKLFOHWRROV :KHHOVDQGW\UHV  /RDGLQGH[HJLV


HTXLYDOHQWWRNJ
+ 6SHHGFRGHOHWWHU
7RROV 7\UHFRQGLWLRQZKHHOFRQGLWLRQ 6SHHGFRGHOHWWHU
9HKLFOHVZLWKW\UHUHSDLUNLW 'ULYHRYHUHGJHVVORZO\DQGDWULJKW
DQJOHVLISRVVLEOH'ULYLQJRYHUVKDUS 4 XSWRNPK
7KHWRROVDQGW\UHUHSDLUNLWDUHLQ 6 XSWRNPK
DVWRUDJHFRPSDUWPHQWEHORZWKH HGJHVFDQFDXVHW\UHDQGZKHHO
GDPDJH'RQRWWUDSW\UHVRQWKHNHUE 7 XSWRNPK
IORRUFRYHULQWKHORDGFRPSDUWPHQW + XSWRNPK
ZKHQSDUNLQJ
9 XSWRNPK
9HKLFOHVZLWKVSDUHZKHHO 5HJXODUO\FKHFNWKHZKHHOVIRU : XSWRNPK
7KHMDFNDQGWKHWRROVDUHLQDVWRUDJH GDPDJH6HHNWKHDVVLVWDQFHRI
FRPSDUWPHQWLQWKHORDG DZRUNVKRSLQWKHHYHQWRIGDPDJHRU
FRPSDUWPHQWDERYHWKHVSDUHZKHHO XQXVXDOZHDU 7\UHSUHVVXUH
&KHFNWKHSUHVVXUHRIFROGW\UHVDW
:LQWHUW\UHV OHDVWHYHU\GD\VDQGEHIRUHDQ\
ORQJMRXUQH\'RQRWIRUJHWWKHVSDUH
:LQWHUW\UHVLPSURYHGULYLQJVDIHW\DW ZKHHO
WHPSHUDWXUHVEHORZ¡&DQGVKRXOG
WKHUHIRUHEHILWWHGRQDOOZKHHOV 8QVFUHZWKHYDOYHFDS

7\UHGHVLJQDWLRQV
(J
5+
 7\UHZLGWKPP
 &URVVVHFWLRQUDWLR W\UH
KHLJKWWRW\UHZLGWK 
&RPSDFWVSDUHZKHHO  5 %HOWW\SH5DGLDO
5) 7\SH5XQ)ODW
 :KHHOGLDPHWHULQFKHV
 9HKLFOHFDUH

7KHOHJDOO\SHUPLVVLEOHPLQLPXP
 :DUQLQJ WUHDGGHSWK PP KDVEHHQ
UHDFKHGZKHQWKHWUHDGKDVZRUQ
,IWKHSUHVVXUHLVWRRORZWKLVFDQ GRZQDVIDUDVRQHRIWKHWUHDGZHDU
UHVXOWLQFRQVLGHUDEOHW\UHZDUP LQGLFDWRUV 7:, 7KHLUSRVLWLRQLV
XSDQGLQWHUQDOGDPDJHOHDGLQJWR LQGLFDWHGE\PDUNLQJVRQWKH
WUHDGVHSDUDWLRQDQGHYHQWRW\UH VLGHZDOO
EORZRXWDWKLJKVSHHGV
,IWKHUHLVPRUHZHDUDWWKHIURQWWKDQ
WKHUHDUVZDSURXQGIURQWZKHHOVDQG
7UHDGGHSWK UHDUZKHHOV(QVXUHWKDWWKHGLUHFWLRQ
&KHFNWUHDGGHSWKDWUHJXODU RIURWDWLRQRIWKHZKHHOVLVWKHVDPH
LQWHUYDOV DVEHIRUH
7\UHSUHVVXUH DQGRQWKHODEHO 7\UHVVKRXOGEHUHSODFHGIRUVDIHW\ 7\UHVDJHHYHQLIWKH\DUHQRWXVHG
RQWKHGULYHU
VGRRUIUDPH UHDVRQVDWDWUHDGGHSWKRIPP :HUHFRPPHQGW\UHUHSODFHPHQW
7KHW\UHSUHVVXUHGDWDUHIHUVWRFROG PPIRUZLQWHUW\UHV  HYHU\\HDUV
W\UHV,WDSSOLHVWRVXPPHUDQGZLQWHU
W\UHV &KDQJLQJW\UHDQGZKHHO
$OZD\VLQIODWHWKHVSDUHW\UHWRWKH VL]H
SUHVVXUHVSHFLILHGIRUIXOOORDG
,IW\UHVRIDGLIIHUHQWVL]HWKDQWKRVH
7KH(&2W\UHSUHVVXUHVHUYHVWR ILWWHGDWWKHIDFWRU\DUHXVHGLWPD\EH
DFKLHYHWKHVPDOOHVWDPRXQWRIIXHO QHFHVVDU\WRUHSURJUDPWKH
FRQVXPSWLRQSRVVLEOH VSHHGRPHWHUDVZHOODVWKHQRPLQDO
,QFRUUHFWW\UHSUHVVXUHVZLOOLPSDLU W\UHSUHVVXUHDQGPDNHRWKHUYHKLFOH
VDIHW\YHKLFOHKDQGOLQJFRPIRUWDQG PRGLILFDWLRQV
IXHOHFRQRP\DQGZLOOLQFUHDVHW\UH $IWHUFRQYHUWLQJWRDGLIIHUHQWW\UH
ZHDU VL]HKDYHWKHODEHOZLWKW\UH
SUHVVXUHVUHSODFHG
9HKLFOHFDUH 

 :DUQLQJ :KHHOFRYHUV 7\UHFKDLQV


:KHHOFRYHUVDQGW\UHVWKDWDUH
8VHRIXQVXLWDEOHW\UHVRUZKHHOV IDFWRU\DSSURYHGIRUWKHUHVSHFWLYH
PD\OHDGWRDFFLGHQWVDQGZLOO YHKLFOHDQGFRPSO\ZLWKDOORIWKH
LQYDOLGDWHWKHYHKLFOHW\SH UHOHYDQWZKHHODQGW\UHFRPELQDWLRQ
DSSURYDO UHTXLUHPHQWVPXVWEHXVHG
,IWKHZKHHOFRYHUVDQGW\UHVXVHGDUH
 :DUQLQJ QRWIDFWRU\DSSURYHGWKHW\UHVPXVW
QRWKDYHDULPSURWHFWLRQULGJH
'RQRWXVHGLIIHUHQWVL]HDQGW\SH :KHHOFRYHUVPXVWQRWLPSDLUEUDNH
RIW\UHVDQGZKHHOVWKDQWKRVH FRROLQJ
RULJLQDOO\LQVWDOOHGRQWKHYHKLFOH
,WFDQDIIHFWVDIHW\DQG  :DUQLQJ
SHUIRUPDQFHRIWKHYHKLFOH,W
7\UHFKDLQVDUHRQO\SHUPLWWHGRQWKH
FRXOGOHDGWRKDQGOLQJIDLOXUHRU 8VHRIXQVXLWDEOHW\UHVRUZKHHO IURQWZKHHOV
UROORYHUDQGVHULRXVLQMXU\:KHQ FRYHUVFRXOGOHDGWRVXGGHQ
UHSODFLQJW\UHVEHVXUHWRLQVWDOO SUHVVXUHORVVDQGWKHUHE\ $OZD\VXVHILQHPHVKFKDLQVWKDWDGG
DOOIRXUW\UHVDQGZKHHOVRIWKH DFFLGHQWV QRPRUHWKDQPPWRWKHW\UHWUHDG
VDPHVL]HW\SHWUHDGEUDQGDQG DQGWKHLQERDUGVLGHV LQFOXGLQJFKDLQ
ORDGFDUU\LQJFDSDFLW\7KHXVHRI ORFN 
DQ\RWKHUW\UHVL]HRUW\SHPD\
VHULRXVO\DIIHFWULGHKDQGOLQJ  :DUQLQJ
JURXQGFOHDUDQFHVWRSSLQJ
GLVWDQFHERG\FOHDUDQFHDQG 'DPDJHPD\OHDGWRW\UHEORZRXW
VSHHGRPHWHUUHOLDELOLW\
 9HKLFOHFDUH

7\UHUHSDLUNLW  5HPRYHWKHFRPSUHVVRUDQGWKH
VHDODQWERWWOH
0LQRUGDPDJHWRWKHW\UHWUHDGRU
VLGHZDOOFDQEHUHSDLUHGZLWKWKHW\UH
UHSDLUNLW
'RQRWUHPRYHIRUHLJQERGLHVIURP
WKHW\UHV
7\UHGDPDJHH[FHHGLQJPPRUWKDW
LVDWW\UH
VVLGHZDOOQHDUWKHULP
FDQQRWEHUHSDLUHGZLWKWKHW\UHUHSDLU
NLW

 :DUQLQJ  7KHVZLWFKRQWKHFRPSUHVVRU
PXVWEHVHWWRc
'RQRWGULYHIDVWHUWKDQNPK
 5HPRYHWKHHOHFWULFDOFRQQHFWLRQ  6FUHZWKHFRPSUHVVRUDLUKRVHWR
'RQRWXVHIRUDOHQJWK\SHULRG FDEOHDQGDLUKRVHIURPWKH WKHFRQQHFWLRQRQWKHVHDODQW
6WHHULQJDQGKDQGOLQJPD\EH VWRZDJHFRPSDUWPHQWVRQWKH ERWWOH
DIIHFWHG XQGHUVLGHRIWKHFRPSUHVVRU  &RQQHFWWKHFRPSUHVVRUSOXJWR
WKHDFFHVVRU\VRFNHW7RDYRLG
,I\RXKDYHDIODWW\UH GLVFKDUJLQJWKHEDWWHU\ZH
$SSO\WKHSDUNLQJEUDNHDQGHQJDJH UHFRPPHQGUXQQLQJWKHHQJLQH
ILUVWJHDURUUHYHUVHJHDU  )LWWKHVHDODQWERWWOHLQWRWKH
7KHW\UHUHSDLUNLWLVLQDFRPSDUWPHQW UHWDLQHURQWKHFRPSUHVVRU
XQGHUWKHIORRUFRYHULQWKHORDG 6HWWKHFRPSUHVVRUQHDUWKHW\UH
FRPSDUWPHQW LQVXFKDZD\WKDWWKHVHDODQW
 7DNHWKHW\UHUHSDLUNLWIURPWKH ERWWOHLVXSULJKW
FRPSDUWPHQW
9HKLFOHFDUH 

 6HWWKHURFNHUVZLWFKRQWKH 'RQRWUXQWKHFRPSUHVVRUORQJHU


FRPSUHVVRUWR,,7KHW\UHLVILOOHG WKDQPLQXWHV
ZLWKVHDODQW  'HWDFKWKHW\UHUHSDLUNLW3XVK
 7KHFRPSUHVVRUSUHVVXUHJDXJH FDWFKRQEUDFNHWWRUHPRYH
EULHIO\LQGLFDWHVXSWREDUZKLOVW VHDODQWERWWOHIURPEUDFNHW6FUHZ
WKHVHDODQWERWWOHLVHPSW\LQJ W\UHLQIODWLRQKRVHWRWKHIUHH
DSSUR[VHFRQGV 7KHQWKH FRQQHFWLRQRIVHDODQWERWWOH7KLV
SUHVVXUHVWDUWVWRGURS SUHYHQWVVHDODQWIURPHVFDSLQJ
 $OORIWKHVHDODQWLVSXPSHGLQWR 6WRZW\UHUHSDLUNLWLQORDG
WKHW\UH7KHQWKHW\UHLVLQIODWHG FRPSDUWPHQW
 7KHSUHVFULEHGW\UHSUHVVXUH  5HPRYHDQ\H[FHVVVHDODQW
$ERXWEDU VKRXOGEH XVLQJDFORWK
 8QVFUHZYDOYHFDSIURPGHIHFWLYH REWDLQHGZLWKLQPLQXWHV:KHQ  7DNHWKHODEHOLQGLFDWLQJ
W\UH WKHFRUUHFWSUHVVXUHLVREWDLQHG PD[LPXPSHUPLWWHGVSHHG
 6FUHZWKHILOOHUKRVHWRWKHW\UH VZLWFKRIIWKHFRPSUHVVRU DSSUR[NPK IURPWKH
YDOYH ,IWKHSUHVFULEHGW\UHSUHVVXUHLV VHDODQWERWWOHDQGDIIL[LQWKH
QRWREWDLQHGZLWKLQPLQXWHV GULYHU
VILHOGRIYLHZ
UHPRYHWKHW\UHUHSDLUNLW0RYH  &RQWLQXHGULYLQJLPPHGLDWHO\VR
WKHYHKLFOHRQHW\UHURWDWLRQ WKDWVHDODQWLVHYHQO\GLVWULEXWHG
5HDWWDFKWKHW\UHUHSDLUNLWDQG LQWKHW\UH$IWHUGULYLQJDSSUR[
FRQWLQXHWKHILOOLQJSURFHGXUHIRU NP EXWQRPRUHWKDQ
PLQXWHV,IWKHSUHVFULEHGW\UH PLQXWHV VWRSDQGFKHFNW\UH
SUHVVXUHLVVWLOOQRWREWDLQHGWKH SUHVVXUH6FUHZFRPSUHVVRUDLU
W\UHLVWRREDGO\GDPDJHG6HHN KRVHGLUHFWO\RQWRW\UHYDOYHDQG
WKHDVVLVWDQFHRIDZRUNVKRS FRPSUHVVRUZKHQGRLQJWKLV
'UDLQH[FHVVW\UHSUHVVXUHZLWK ,IW\UHSUHVVXUHLVPRUHWKDQ
WKHEXWWRQRYHUWKHSUHVVXUH EDUVHWLWWRWKHFRUUHFWYDOXH
LQGLFDWRU DSSUR[EDU 5HSHDWWKH
 9HKLFOHFDUH

SURFHGXUH QR XQWLOWKHUHLVQR ,IXQXVXDOQRLVHLVKHDUGRUWKH 6RPHYHKLFOHVDUHHTXLSSHGZLWK


PRUHORVVRISUHVVXUH FRPSUHVVRUEHFRPHVKRWWXUQ DW\UHUHSDLUNLWLQVWHDGRIDVSDUH
,IWKHW\UHSUHVVXUHKDVIDOOHQ FRPSUHVVRURIIIRUDWOHDVW ZKHHO 
EHORZEDUWKHYHKLFOHPXVW PLQXWHV 0DNHWKHIROORZLQJSUHSDUDWLRQVDQG
QRWEHXVHG6HHNWKHDVVLVWDQFH 1RWHWKHH[SLU\GDWHRIWKHNLW$IWHU REVHUYHWKHIROORZLQJLQIRUPDWLRQ
RIDZRUNVKRS WKLVGDWHLWVVHDOLQJFDSDELOLW\LVQR ࿢ 3XOORYHU\RXUYHKLFOHWRDVDIH
ORQJHUJXDUDQWHHG3D\DWWHQWLRQWR SODFHDZD\IURPWUDIILF
VWRUDJHLQIRUPDWLRQRQVHDODQW
ERWWOH ࿢ 3DUNWKHYHKLFOHRQDOHYHOILUPDQG
QRQVNLGVXUIDFH7KHIURQWZKHHOV
5HSODFHWKHXVHGVHDODQWERWWOH PXVWEHLQWKHVWUDLJKWDKHDG
'LVSRVHRIWKHERWWOHDVSUHVFULEHG SRVLWLRQ
E\DSSOLFDEOHODZV
࿢ $SSO\WKHSDUNLQJEUDNHDQG
7KHFRPSUHVVRUDQGVHDODQWFDQEH HQJDJHILUVWJHDURUUHYHUVHJHDU
XVHGIURPDSSUR[¡&a¡&
࿢ 7XUQRIIWKHHQJLQHDQGUHPRYH
:KHHOFKDQJLQJ NH\
0L[LQJW\UHVFRXOGFDXVH\RXWRORVH ࿢ 7XUQRQWKHKD]DUGZDUQLQJ
FRQWUROZKLOHGULYLQJ IODVKHUV
 6WRZDZD\W\UHUHSDLUNLWLQORDG ,I\RXPL[W\UHVRIGLIIHUHQWVL]HV ࿢ 8VHDZHGJHEORFNRIZRRGRU
FRPSDUWPHQW EUDQGVRUW\SHV UDGLDODQGELDV URFNVLQIURQWRIDQGEHKLQGWKHW\UH
EHOWHGW\UHV WKHYHKLFOHPD\QRW WKDWLVGLDJRQDOIURPWKHW\UH\RX
1RWH
KDQGOHSURSHUO\DQG\RXFRXOGKDYH SODQWRFKDQJH
7KHGULYLQJFRPIRUWRIWKHUHSDLUHG
W\UHLVVHYHUHO\DIIHFWHGWKHUHIRUH DFUDVK8VLQJW\UHVRIGLIIHUHQWVL]HV ࿢ $OOSDVVHQJHUVPXVWJHWRXWRIWKH
KDYHWKLVW\UHUHSODFHG EUDQGVRUW\SHVPD\DOVRFDXVH YHKLFOH
GDPDJHWR\RXUYHKLFOH%HVXUHWR ࿢ 5HPRYHWKHVSDUHZKHHO 
XVHWKHFRUUHFWVL]HEUDQGDQGW\SH
RIW\UHVRQDOOZKHHOV ࿢ 1HYHUFKDQJHPRUHWKDQRQHZKHHO
DWRQFH
9HKLFOHFDUH 

࿢ 8VHWKHMDFNRQO\WRFKDQJHZKHHOV 8VHRIWKLVMDFNRQRWKHUYHKLFOHV
LQFDVHRISXQFWXUHQRWIRU PD\GDPDJHWKHRWKHUYHKLFOHVRU
VHDVRQDOZLQWHURUVXPPHUW\UH \RXUMDFNDQGOHDGWRSHUVRQDO
FKDQJH LQMXU\
࿢ ,IWKHJURXQGRQZKLFKWKHYHKLFOH
LVVWDQGLQJLVVRIWDVROLGERDUG
PD[FPWKLFN VKRXOGEHSODFHG
XQGHUWKHMDFN
࿢ 1RSHRSOHRUDQLPDOVPD\EHLQWKH
YHKLFOHZKHQLWLVMDFNHGXS
࿢ 1HYHUFUDZOXQGHUDMDFNHGXS
YHKLFOH
 )ROGRXWWKHZKHHOZUHQFKDQG
࿢ 'RQRWVWDUWWKHYHKLFOHZKHQLWLV LQVWDOOHQVXULQJWKDWLWORFDWHV
UDLVHGRQWKHMDFN VHFXUHO\DQGORRVHQHDFKZKHHO
࿢ &OHDQZKHHOQXWVDQGWKUHDGEHIRUH QXWE\KDOIDWXUQ
PRXQWLQJWKHZKHHO
 'LVHQJDJHZKHHOQXWFDSVZLWK
 :DUQLQJ
DVFUHZGULYHUDQGUHPRYH
:HGHVLJQHGWKHMDFNIRUXVHRQ
\RXUYHKLFOHRQO\
'RQRWXVHMDFNSURYLGHGZLWK\RXU
YHKLFOHRQRWKHUYHKLFOHV
1HYHUH[FHHGWKHMDFNಫVPD[LPXP
SHUPLVVLEOHORDG
 9HKLFOHFDUH

 5RWDWHWKHMDFNKDQGOHWRUDLVHWKH ,QVWDOOZKHHOQXWFDSV
OLIWKHDGVOLJKWO\DQGSODFHWKHMDFN  6WRZWKHUHSODFHGZKHHODQGWKH
YHUWLFDOO\DWWKHSRVLWLRQPDUNHG YHKLFOHWRROV7RSUHYHQWWKH
ZLWKKDOIFLUFOH UDWWOLQJQRLVHWXUQVFUHZKHDG
XQWLOWKHWRSDQGERWWRPRIWKHMDFN
DUHFRPSOHWHO\VTXHH]HGWRWKH
WRROER[DIWHUUHWXUQLQJWKHMDFNWR
LWVRULJLQDOSRVLWLRQ$WWKLVWLPH
PDNHVXUHWKDWMDFNKDVVRPH
FOHDUDQFHWRDQ\YHKLFOHWRRO
7RROV 
 &KHFNWKHW\UHSUHVVXUHRIWKH
 5RWDWHWKHZUHQFKFKHFNLQJWKH LQVWDOOHGW\UHDQGDOVRWKHZKHHO
FRUUHFWSRVLWLRQRIMDFNXQWLOZKHHO QXWWRUTXHDVVRRQDVSRVVLEOH
LVFOHDURIWKHJURXQG +DYHWKHGHIHFWLYHW\UHUHQHZHGRU
 8QVFUHZWKHZKHHOQXWV UHSDLUHG
 $WWDFKMDFNKDQGOHWRWKHMDFNDQG  &KDQJHWKHZKHHO
DWWDFKZUHQFKWRWKHMDFNKDQGOH
FRUUHFWO\  6FUHZRQWKHZKHHOQXWV 6SDUHZKHHO
7KHQUDLVHWKHMDFNWRMRLQWKHOLIW  /RZHUYHKLFOH
&RPSDFWVSDUHZKHHO
KHDGDWWKHMDFNLQJSRVLWLRQILUPO\  ,QVWDOOWKHZKHHOZUHQFKHQVXULQJ
7KHVSDUHZKHHOFDQEHFODVVLILHGDV
WKDWLWORFDWHVVHFXUHO\DQGWLJKWHQ
DWHPSRUDU\VSDUHZKHHOGHSHQGLQJ
HDFKQXWLQDFURVVZLVH
RQWKHVL]HFRPSDUHGWRWKHRWKHU
VHTXHQFH7LJKWHQLQJWRUTXHLV
PRXQWHGZKHHOVDQGFRXQWU\
1P
UHJXODWLRQV
 $OLJQWKHYDOYHKROHLQWKHZKHHO
7KHVSDUHZKHHOKDVDVWHHOULP
FRYHUZLWKWKHW\UHYDOYHEHIRUH
LQVWDOOLQJ
9HKLFOHFDUH 

8VHRIDVSDUHZKHHOWKDWLVVPDOOHU 'LUHFWLRQDOW\UHV
WKDQWKHRWKHUZKHHOVRUWRJHWKHUZLWK &DXWLRQ
)LWGLUHFWLRQDOW\UHVVXFKWKDWWKH\UROO
ZLQWHUW\UHVFRXOGDIIHFWGULYHDELOLW\ LQWKHGLUHFWLRQRIWUDYHO7KHUROOLQJ
+DYHWKHGHIHFWLYHW\UHUHSODFHGDV 7KLVVSDUHZKHHOW\UHDVVHPEO\LV
IRUWHPSRUDU\HPHUJHQF\XVH GLUHFWLRQLVLQGLFDWHGE\DV\PERO
VRRQDVSRVVLEOH HJDQDUURZ RQWKHVLGHZDOO
RQO\
5HSODFHZLWKUHJXODUZKHHOW\UH 7KHIROORZLQJDSSOLHVWRW\UHVILWWHG
DVVHPEO\DVVRRQDVSRVVLEOH RSSRVLQJWKHUROOLQJGLUHFWLRQ
'RQRWXVHW\UHFKDLQV ࿢ 'ULYHDELOLW\PD\EHDIIHFWHG+DYH
WKHGHIHFWLYHW\UHUHQHZHGRU
'RQRWLQVWDOODQ\W\UHRQWKLV UHSDLUHGDVVRRQDVSRVVLEOH
ZKHHOZKLFKLVQRWLGHQWLFDOWRWKH
RULJLQDO ࿢ 'RQRWGULYHIDVWHUWKDQNPK
'RQRWLQVWDOORQRWKHUYHKLFOHV ࿢ 'ULYHSDUWLFXODUO\FDUHIXOO\RQZHW
DQGVQRZFRYHUHGURDGVXUIDFHV
7HPSRUDU\VSDUHZKHHO
8VHRIWKHWHPSRUDU\VSDUHZKHHO
FRXOGDIIHFWGULYHDELOLW\+DYHWKH
7KHVSDUHZKHHOLVORFDWHGLQWKHORDG GHIHFWLYHW\UHUHQHZHGRUUHSDLUHGDV
FRPSDUWPHQWEHQHDWKWKHIORRU VRRQDVSRVVLEOH
FRYHULQJ,WLVVHFXUHGLQWKHUHFHVV 2QO\PRXQWRQHWHPSRUDU\VSDUH
ZLWKDZLQJQXW ZKHHO'RQRWGULYHIDVWHUWKDQ
7KHVSDUHZKHHOZHOOLVQRWGHVLJQHG NPK7DNHFXUYHVVORZO\'RQRW
IRUDOOSHUPLWWHGW\UHVL]HV,IDZKHHO XVHIRUDORQJSHULRGRIWLPH
ZLGHUWKDQWKHVSDUHPXVWEHVWRZHG 7\UHFKDLQV 
LQWKHVSDUHZKHHOZHOODIWHUFKDQJLQJ
ZKHHOVWKHIORRUFRYHUFDQEHSODFHG
RQWKHSURMHFWLQJZKHHO
 9HKLFOHFDUH

-XPSVWDUWLQJ ࿢ $GLVFKDUJHGEDWWHU\FDQDOUHDG\ ࿢ 7KHYHKLFOHVPXVWQRWFRPHLQWR


IUHH]HDWDWHPSHUDWXUHRI¡& FRQWDFWZLWKHDFKRWKHUGXULQJWKH
'HIURVWWKHIUR]HQEDWWHU\EHIRUH MXPSVWDUWLQJSURFHVV
'RQRWVWDUWZLWKTXLFNFKDUJHU
FRQQHFWLQJMXPSOHDGV ࿢ $SSO\WKHSDUNLQJEUDNH
$YHKLFOHZLWKDGLVFKDUJHGEDWWHU\
࿢ :HDUH\HSURWHFWLRQDQGSURWHFWLYH WUDQVPLVVLRQLQQHXWUDODXWRPDWLF
FDQEHVWDUWHGXVLQJMXPSOHDGVDQG
FORWKLQJZKHQKDQGOLQJDEDWWHU\ WUDQVPLVVLRQLQ3
WKHEDWWHU\RIDQRWKHUYHKLFOH
࿢ 8VHDERRVWHUEDWWHU\ZLWKWKH
 :DUQLQJ VDPHYROWDJH 9ROWV ,WV
FDSDFLW\ $K PXVWQRWEHPXFK
%HH[WUHPHO\FDUHIXOZKHQVWDUWLQJ OHVVWKDQWKDWRIWKHGLVFKDUJHG
ZLWKMXPSOHDGV$Q\GHYLDWLRQ EDWWHU\
IURPWKHIROORZLQJLQVWUXFWLRQVFDQ ࿢ 8VHMXPSOHDGVZLWKLQVXODWHG
OHDGWRLQMXULHVRUGDPDJHFDXVHG WHUPLQDOVDQGDFURVVVHFWLRQRIDW
E\EDWWHU\H[SORVLRQRUGDPDJHWR OHDVWPP
WKHHOHFWULFDOV\VWHPVRIERWK ࿢ 'RQRWGLVFRQQHFWWKHGLVFKDUJHG
YHKLFOHV EDWWHU\IURPWKHYHKLFOH
࿢ 6ZLWFKRIIDOOXQQHFHVVDU\HOHFWULFDO
 :DUQLQJ FRQVXPHUV
࿢ 'RQRWOHDQRYHUWKHEDWWHU\GXULQJ /HDGFRQQHFWLRQRUGHU
$YRLGFRQWDFWRIWKHEDWWHU\ZLWK MXPSVWDUWLQJ  &RQQHFWWKHUHGOHDGWRWKH
H\HVVNLQIDEULFVDQGSDLQWHG SRVLWLYHWHUPLQDORIWKHERRVWHU
VXUIDFHV7KHIOXLGFRQWDLQV ࿢ 'RQRWDOORZWKHWHUPLQDOVRIRQH
OHDGWRWRXFKWKRVHRIWKHRWKHU EDWWHU\
VXOSKXULFDFLGZKLFKFDQFDXVH
LQMXULHVDQGGDPDJHLQWKHHYHQW OHDG  &RQQHFWWKHRWKHUHQGRIWKHUHG
RIGLUHFWFRQWDFW OHDGWRWKHSRVLWLYHWHUPLQDORIWKH
GLVFKDUJHGEDWWHU\
࿢ 1HYHUH[SRVHWKHEDWWHU\WRQDNHG
IODPHVRUVSDUNV
9HKLFOHFDUH 

 &RQQHFWWKHEODFNOHDGWRWKH  6ZLWFKRQHOHFWULFDOFRQVXPHUV 7RZLQJ


QHJDWLYHWHUPLQDORIWKHERRVWHU HJKHDGOLJKWVKHDWHGUHDU
EDWWHU\ ZLQGRZ RIWKHYHKLFOHUHFHLYLQJ
WKHMXPSVWDUW
7RZLQJWKHYHKLFOH
 &RQQHFWWKHRWKHUHQGRIWKHEODFN
OHDGWRDYHKLFOHJURXQGLQJSRLQW  5HYHUVHDERYHVHTXHQFHH[DFWO\ ,I\RXQHHGWRKDYH\RXUYHKLFOH
VXFKDVWKHHQJLQHEORFNRUDQ ZKHQUHPRYLQJOHDGV WRZHGSOHDVHXVHRXUVHUYLFH
HQJLQHPRXQWLQJEROW&RQQHFWDV QHWZRUNRUSURIHVVLRQDOWRZLQJ
IDUDZD\IURPWKHGLVFKDUJHG FRPSDQ\
EDWWHU\DVSRVVLEOHKRZHYHUDW
OHDVWFP
5RXWHWKHOHDGVVRWKDWWKH\FDQQRW
FDWFKRQURWDWLQJSDUWVLQWKHHQJLQH
FRPSDUWPHQW
7RVWDUWWKHHQJLQH
 6WDUWWKHHQJLQHRIWKHYHKLFOH
SURYLGLQJWKHMXPS
 $IWHUPLQXWHVVWDUWWKHRWKHU
HQJLQH6WDUWDWWHPSWVVKRXOGEH
PDGHIRUQRORQJHUWKDQ
VHFRQGVDWDQLQWHUYDORI
PLQXWH 7KHEHVWPHWKRGLVWRKDYHWKH
YHKLFOHWUDQVSRUWHGXVLQJDUHFRYHU\
 $OORZERWKHQJLQHVWRLGOHIRU YHKLFOH
DSSUR[PLQXWHVZLWKWKHOHDGV
FRQQHFWHG
 9HKLFOHFDUH

3OHDVHREVHUYHWKHIROORZLQJ
SURFHGXUHVZKHQWRZLQJDYHKLFOH
࿢ 1RSDVVHQJHUVKRXOGUHPDLQLQWKH
YHKLFOHEHLQJWRZHG
࿢ 5HOHDVHWKHSDUNLQJEUDNHRIWKH
WRZHGYHKLFOHDQGSODFHWKH
WUDQVPLVVLRQJHDULQQHXWUDO
࿢ 6ZLWFKRQWKHHPHUJHQF\ZDUQLQJ
OLJKWV
࿢ .HHSWKHVSHHGOLPLWV

'LVHQJDJHFDSE\SUHVVLQJWKHDUURZ
SRVLWLRQ $%DVHPRGHO%6SHFLDO
SDFNDJHPRGHO DQGUHPRYHWKHFDS
7KHWRZLQJH\HLVVWRZHGZLWKWKH
YHKLFOHWRROV 

,IWRZLQJE\ZKHHOVOLIWWKHIURQW
GULYLQJZKHHOVDQGWRZZLWKWKHIURQW
WLUHVORFNHG
9HKLFOHFDUH 

7KHEHVWPHWKRGLVWRKDYHWKH
&DXWLRQ YHKLFOHWUDQVSRUWHGXVLQJDUHFRYHU\
YHKLFOH
'ULYHVORZO\'RQRWGULYHMHUNLO\
([FHVVLYHWUDFWLYHIRUFHFDQ
GDPDJHWKHYHKLFOH 7RZLQJDQRWKHUYHKLFOH
:KHQWKHHQJLQHLVQRWUXQQLQJ
FRQVLGHUDEO\PRUHIRUFHLVQHHGHGWR
EUDNHDQGVWHHU
7RSUHYHQWWKHHQWU\RIH[KDXVWJDVHV
IURPWKHWRZLQJYHKLFOHVZLWFKRQWKH
DLUUHFLUFXODWLRQDQGFORVHWKH
6FUHZLQWKHWRZLQJH\HDVIDUDVLWZLOO ZLQGRZV
JRXQWLOLWVWRSVLQDKRUL]RQWDO
SRVLWLRQ 9HKLFOHVZLWKDXWRPDWLFWUDQVPLVVLRQ
7KHYHKLFOHPXVWEHWRZHGIDFLQJ
$WWDFKDWRZURSHಥRUEHWWHUVWLOODWRZ IRUZDUGVQRWIDVWHUWKDQNPKQRU
URGಥWRWKHWRZLQJH\H IXUWKHUWKDQNP,QDOORWKHUFDVHV
7KHWRZLQJH\HPXVWRQO\EHXVHGIRU DQGZKHQWKHWUDQVPLVVLRQLV
7KHUHDUWRZLQJH\HLVORFDWHGXQGHU
WRZLQJDQGQRWIRUUHFRYHULQJWKH GHIHFWLYHWKHIURQWD[OHPXVWEH
WKHUHDUEXPSHU
YHKLFOH UDLVHGRIIWKHJURXQG
7KHWRZLQJH\HPXVWRQO\EHXVHGIRU
6ZLWFKRQLJQLWLRQWRUHOHDVHVWHHULQJ 6HHNWKHDVVLVWDQFHRIDZRUNVKRS
WRZLQJDQGQRWIRUUHFRYHULQJ
ZKHHOORFNDQGWRSHUPLWRSHUDWLRQRI $IWHUWRZLQJXQVFUHZWKHWRZLQJH\H DYHKLFOH
EUDNHOLJKWVKRUQDQGZLQGVFUHHQ
ZLSHU $ %DVHPRGHO ,QVHUWFDSRQOHIWVLGH
DQGFORVHFDS
7UDQVPLVVLRQLQQHXWUDO
% 6SHFLDOSDFNDJHPRGHO ,QVHUW
FDSDWWKHERWWRPDQGFORVHFDS
 9HKLFOHFDUH

$SSHDUDQFHFDUH ,IXVLQJDYHKLFOHZDVKFRPSO\ZLWK
WKHYHKLFOHZDVKPDQXIDFWXUHU
V
LQVWUXFWLRQV7KHZLQGVFUHHQZLSHUV
([WHULRUFDUH DQGUHDUZLQGRZZLSHUPXVWEH
VZLWFKHGRII/RFNWKHYHKLFOHVRWKDW
/RFNV WKHIXHOILOOHUIODSFDQQRWEHRSHQHG
7KHORFNVDUHOXEULFDWHGDWWKHIDFWRU\ 5HPRYHDQWHQQDDQGH[WHUQDO
XVLQJDKLJKTXDOLW\ORFNF\OLQGHU DFFHVVRULHVVXFKDVURRIUDFNVHWF
JUHDVH8VHGHLFLQJDJHQWRQO\ZKHQ
DEVROXWHO\QHFHVVDU\DVWKLVKDV ,I\RXZDVK\RXUYHKLFOHE\KDQG
DGHJUHDVLQJHIIHFWDQGLPSDLUVORFN PDNHVXUHWKDWWKHLQVLGHVRIWKH
IXQFWLRQ$IWHUXVLQJGHLFLQJDJHQW ZKHHOKRXVLQJVDUHDOVRWKRURXJKO\
KDYHWKHORFNVUHJUHDVHGE\ ULQVHGRXW
,I\RXUYHKLFOHKDVDFRYHURQWKHUHDU DZRUNVKRS &OHDQHGJHVDQGIROGVRQRSHQHG
EXPSHULQIURQWRIWKHUHDUWRZLQJH\H GRRUVDQGWKHERQQHWDVZHOODVWKH
UHPRYHWZRFOLSVIURPWKHFRYHU :DVKLQJ DUHDVWKH\FRYHU
'LVHQJDJHFRYHUE\SXOOLQJ 7KHSDLQWZRUNRI\RXUYHKLFOHLV +DYHWKHGRRUKLQJHVRIDOOGRRUV
EDFNZDUG H[SRVHGWRHQYLURQPHQWDOLQIOXHQFHV JUHDVHGE\DZRUNVKRS
$IWHUWRZLQJUHLQVWDOOWKHFRYHUILUPO\ :DVKDQGZD[\RXUYHKLFOHUHJXODUO\
'RQRWFOHDQWKHHQJLQHFRPSDUWPHQW
:KHQXVLQJDXWRPDWLFYHKLFOH
ZLWKDVWHDPMHWRUKLJKSUHVVXUHMHW
&DXWLRQ ZDVKHVVHOHFWDSURJUDPPHWKDW
FOHDQHU
LQFOXGHVZD[LQJ
7KRURXJKO\ULQVHDQGOHDWKHURIIWKH
'ULYHVORZO\'RQRWGULYHMHUNLO\ %LUGGURSSLQJVGHDGLQVHFWVUHVLQ
YHKLFOH5LQVHOHDWKHUIUHTXHQWO\8VH
([FHVVLYHWUDFWLYHIRUFHFDQ SROOHQDQGWKHOLNHVKRXOGEHFOHDQHG
VHSDUDWHOHDWKHUVIRUSDLQWHGDQG
GDPDJHWKHYHKLFOH RIILPPHGLDWHO\DVWKH\FRQWDLQ
JODVVVXUIDFHVUHPQDQWVRIZD[RQ
DJJUHVVLYHFRQVWLWXHQWVZKLFKFDQ
WKHZLQGRZVZLOOLPSDLUYLVLRQ
FDXVHSDLQWGDPDJH
9HKLFOHFDUH 

'RQRWXVHKDUGREMHFWVWRUHPRYH :LQGRZVDQGZLQGVFUHHQZLSHU 3DLQWZRUNGDPDJH


VSRWVRIWDU8VHWDUUHPRYDOVSUD\RQ EODGHV 5HFWLI\PLQRUSDLQWZRUNGDPDJHZLWK
SDLQWHGVXUIDFHV 8VHDVRIWOLQWIUHHFORWKRUFKDPRLV DWRXFKXSSHQEHIRUHUXVWIRUPV
OHDWKHUWRJHWKHUZLWKZLQGRZFOHDQHU +DYHPRUHH[WHQVLYHGDPDJHRUUXVW
([WHULRUOLJKWV DQGLQVHFWUHPRYHU DUHDVUHSDLUHGE\DZRUNVKRS
+HDGOLJKWDQGRWKHUOLJKWFRYHUVDUH
PDGHRISODVWLF'RQRWXVHDQ\ :KHQFOHDQLQJWKHUHDUZLQGRZ
PDNHVXUHWKHKHDWLQJHOHPHQWLQVLGH
6SHFLDOSDFNDJHDQGERG\NLW
DEUDVLYHRUFDXVWLFDJHQWVGRQRWXVH ࿢ %HFDUHIXOZKHQWRZLQJWRSHUYHQW
DQLFHVFUDSHUDQGGRQRWFOHDQWKHP LVQRWGDPDJHG
GDPDJHE\WKHWRZURSH5HPRYH
GU\ )RUPHFKDQLFDOUHPRYDORILFHXVH FRYHULQEXPSHUEHIRUHWRZLQJ
DVKDUSHGJHGLFHVFUDSHU3UHVVWKH
3ROLVKLQJDQGZD[LQJ VFUDSHUILUPO\DJDLQVWWKHJODVVVR ࿢ 5HGXFHGJURXQGFOHDUDQFH'ULYH
WKDWQRGLUWFDQJHWXQGHULWDQG VORZO\RYHUUDPSVEXPSVRUNHUEV
:D[WKHYHKLFOHUHJXODUO\ DWWKH
ODWHVWZKHQZDWHUQRORQJHUEHDGV  VFUDWFKWKHJODVV ࿢ 8VHVXSSRUWZKHQOLIWLQJWKH
2WKHUZLVHWKHSDLQWZRUNZLOOGU\RXW &OHDQVPHDULQJZLSHUEODGHVZLWK YHKLFOH
3ROLVKLQJLVQHFHVVDU\RQO\LIWKHSDLQW DVRIWFORWKDQGZLQGRZFOHDQHU ࿢ 7RSUHYHQWERG\GDPDJHDQG
KDVEHFRPHGXOORULIVROLGGHSRVLWV EUHDNDJHLWLVUHFRPPHQGHGWR
KDYHEHFRPHDWWDFKHGWRLW :KHHOVDQGW\UHV FRPSOHWHO\OLIWWKHYHKLFOHRQWR
'RQRWXVHKLJKSUHVVXUHMHW DUHFRYHU\YHKLFOHZKHQ
3DLQWZRUNSROLVKZLWKVLOLFRQHIRUPV
FOHDQHUV WUDQVSRUWLQJWKHYHKLFOH
DSURWHFWLYHILOPPDNLQJZD[LQJ
XQQHFHVVDU\ &OHDQULPVZLWKDS+QHXWUDOZKHHO
FOHDQHU
8QGHUERG\
3ODVWLFERG\SDUWVPXVWQRWEHWUHDWHG &RUURVLYHPDWHULDOVXVHGIRULFHDQG
ZLWKZD[RUSROLVKLQJDJHQWV 5LPVDUHSDLQWHGDQGFDQEHWUHDWHG VQRZUHPRYDORUGXVWFRQWUROFDQ
ZLWKWKHVDPHDJHQWVDVWKHERG\ FROOHFWRQWKHXQGHUERG\RI\RXU
YHKLFOH)DLOXUHWRUHPRYHWKHVH
PDWHULDOVFDQDFFHOHUDWHFRUURVLRQ
DQGUXVW
 9HKLFOHFDUH

3HULRGLFDOO\XVHSODLQZDWHUWRIOXVK 7KHLQVWUXPHQWSDQHOVKRXOGRQO\EH
WKHVHPDWHULDOVIURPWKHXQGHUERG\ FOHDQHGXVLQJDVRIWGDPSFORWK
RI\RXUYHKLFOH &OHDQIDEULFXSKROVWHU\ZLWK
7DNHFDUHWRFOHDQDQ\DUHDVLQZKLFK DYDFXXPFOHDQHUDQGEUXVK
PXGDQGRWKHUGHEULVFDQFROOHFW 5HPRYHVWDLQVZLWKDQXSKROVWHU\
/RRVHQDQ\VHGLPHQWSDFNHGLQ FOHDQHU
FORVHGDUHDVEHIRUHIOXVKLQJZLWK &OHDQVHDWEHOWVZLWKOXNHZDUPZDWHU
ZDWHU RULQWHULRUFOHDQHU
'HFDODSSOLHGYHKLFOH &DXWLRQ
3OHDVHGRQRWZDVKWKHFDUIRU
KRXUVIURPGHOLYHU\IRUWKHHQRXJK &ORVH9HOFURIDVWHQHUVDVRSHQ
DGKHVLRQRIGHFDO 9HOFURIDVWHQHUVRQFORWKLQJFRXOG
:KHQKLJKSUHVVXUHZDWHURUVWHDP GDPDJHVHDWXSKROVWHU\
ZDQGFDUZDVKSOHDVHPDNHVXUHWR
VSUD\ZDWHURUVWHDPRQWRGHFDO 3ODVWLFDQGUXEEHUSDUWV
NHHSLQJDWOHDVWFPGLVWDQFHIURP 3ODVWLFDQGUXEEHUSDUWVFDQEH
LWDQGQRWWRIRFXVRQRQHSRLQWPRUH FOHDQHGZLWKWKHVDPHFOHDQHUDV
WKDQVHFRQG2WKHUZLVHGHFDOFDQ XVHGWRFOHDQWKHERG\8VHLQWHULRU
EHGDPDJHG FOHDQHULIQHFHVVDU\'RQRWXVHDQ\
RWKHUDJHQW$YRLGVROYHQWVDQGSHWURO
,QWHULRUFDUH LQSDUWLFXODU'RQRWXVHKLJK
SUHVVXUHMHWFOHDQHUV
,QWHULRUDQGXSKROVWHU\
2QO\FOHDQWKHYHKLFOHLQWHULRU
LQFOXGLQJWKHLQVWUXPHQWSDQHOIDVFLD
DQGSDQHOOLQJZLWKDGU\FORWKRU
LQWHULRUFOHDQHU
6HUYLFHDQGPDLQWHQDQFH 

6HUYLFHDQG *HQHUDOLQIRUPDWLRQ
PDLQWHQDQFH 6HUYLFHLQIRUPDWLRQ
,QRUGHUWRHQVXUHHFRQRPLFDODQG
VDIHYHKLFOHRSHUDWLRQDQGWR
*HQHUDOLQIRUPDWLRQ   PDLQWDLQWKHYDOXHRI\RXUYHKLFOHLW
6FKHGXOHGPDLQWHQDQFH   LVRIYLWDOLPSRUWDQFHWKDWDOO
5HFRPPHQGHGIOXLGVOXEULFDQWV PDLQWHQDQFHZRUNLVFDUULHGRXWDWWKH
DQGSDUWV   SURSHULQWHUYDOVDVVSHFLILHG

&RQILUPDWLRQV
&RQILUPDWLRQRIVHUYLFHLVUHFRUGHGLQ
WKH6HUYLFH*XLGH
7KHGDWHDQGPLOHDJHLVFRPSOHWHG
ZLWKWKHVWDPSDQGVLJQDWXUHRIWKH
VHUYLFLQJZRUNVKRS
0DNHVXUHWKDWWKH6HUYLFH*XLGHLV
FRPSOHWHGFRUUHFWO\DVFRQWLQXRXV
SURRIRIVHUYLFHLVHVVHQWLDOLIDQ\
ZDUUDQW\RUJRRGZLOOFODLPVDUHWREH
PHWDQGLVDOVRDEHQHILWZKHQVHOOLQJ
WKHYHKLFOH
 6HUYLFHDQGPDLQWHQDQFH

6FKHGXOHGPDLQWHQDQFH
6HUYLFHVFKHGXOHV
0DLQWHQDQFHLQWHUYDO
(YHU\\HDUNP ZKLFKHYHURFFXUVILUVW

0DLQWHQDQFH,8VH0DLQWHQDQFH,IRUWKHILUVWVHUYLFHRULI0DLQWHQDQFH,,ZDVSHUIRUPHGSUHYLRXVO\
0DLQWHQDQFH,,8VH0DLQWHQDQFH,,LIWKHSUHYLRXVVHUYLFHSHUIRUPHGZDV0DLQWHQDQFH,
6HUYLFHRSHUDWLRQ 0DLQWHQDQFH, 0DLQWHQDQFH,,
5HSODFHHQJLQHRLODQGILOWHU 5 5
,QVSHFWIRUDQ\OHDNVRUGDPDJH , ,
,QVSHFWHQJLQHDLUILOWHU , ,
,QVSHFWW\UHVIRULQIODWLRQSUHVVXUHVDQGZHDU , ,
,QVSHFWEUDNHV\VWHP , ,

 ,IGULYLQJXQGHUVHYHUHFRQGLWLRQVVKRUWGLVWDQFHGULYLQJH[WHQVLYHLGOLQJRUGULYLQJLQGXVW\FRQGLWLRQHQJLQHRLODQG
WKHILOWHUPD\UHTXLUHUHSODFHPHQWPRUHRIWHQ
 )OXLGORVVLQDQ\YHKLFOHV\VWHPFRXOGLQGLFDWHDSUREOHP7KHV\VWHPVKRXOGEHLQVSHFWHGDQGUHSDLUHGDQGWKHIOXLG
OHYHOFKHFNHG$GGIOXLGLIQHHGHG
 ,IGULYLQJUHJXODUO\LQGXVW\FRQGLWLRQVLQVSHFWWKHILOWHUPRUHIUHTXHQWO\7KHILOWHUPD\UHTXLUHUHSODFHPHQWPRUHRIWHQ
 9LVXDOO\LQVSHFWEUDNHOLQHVDQGKRVHVIRUELQGLQJOHDNVFUDFNVFKDILQJHWF,QVSHFWGLVFEUDNHSDGVIRUZHDUDQG
GLVFVIRUVXUIDFHFRQGLWLRQ,QVSHFWGUXPEUDNHOLQLQJVVKRHVIRUZHDURUFUDFNV,QVSHFWRWKHUEUDNHSDUWVLQFOXGLQJ
GUXPVZKHHOF\OLQGHUVFDOLSHUVSDUNLQJEUDNHHWF
6HUYLFHDQGPDLQWHQDQFH 

6HUYLFHRSHUDWLRQ 0DLQWHQDQFH, 0DLQWHQDQFH,,


,QVSHFWHQJLQHFRRODQWDQGZLQGVKLHOGZDVKHUIOXLGOHYHOVDQGDGGIOXLGDVQHHGHG , ,
,QVSHFWVXVSHQVLRQDQGVWHHULQJFRPSRQHQWV , ,
,QVSHFWZLSHUEODGHV , ,
,QVSHFWGULYHEHOWV , ,
3HUIRUPDQ\UHTXLUHGDGGLWLRQDOVHUYLFHVVHHDSSOLFDEOHVHFWLRQ , ,
&KHFNIRUILHOGDFWLRQV , ,
5HSODFHEUDNHIOXLG ಥ 5
,QVSHFWHQJLQHFRROLQJV\VWHP ಥ ,
,QVSHFWUHVWUDLQWV\VWHPFRPSRQHQWV ಥ ,

 9LVXDOO\LQVSHFWIURQWDQGUHDUVXVSHQVLRQDQGVWHHULQJV\VWHPIRUGDPDJHORRVHRUPLVVLQJSDUWVRUVLJQVRIZHDU
,QVSHFWSRZHUVWHHULQJFRPSRQHQWVIRUELQGLQJFUDFNVFKDILQJHWF
 ,QVSHFWZLSHUEODGHVIRUZHDUFUDFNLQJRUFRQWDPLQDWLRQ&OHDQWKHZLQGVKLHOGDQGZLSHUEODGHVLIFRQWDPLQDWHG
5HSODFHZLSHUEODGHVWKDWDUHZRUQRUGDPDJHG
 ,IGULYLQJXQGHUVHYHUHFRQGLWLRQVGULYLQJLQKLOO\RUPRXQWDLQRXVWHUUDLQRUWRZLQJDWUDLOHUIUHTXHQWO\EUDNHIOXLGPD\
UHTXLUHUHSODFHPHQWPRUHRIWHQ
 9LVXDOO\LQVSHFWKRVHVDQGKDYHWKHPUHSODFHGLIWKH\DUHFUDFNHGVZROOHQRUGHWHULRUDWHG,QVSHFWDOOSLSHVILWWLQJV
DQGFODPSVUHSODFHZLWKJHQXLQHSDUWVLIQHHGHG7RKHOSHQVXUHFRUUHFWRSHUDWLRQDSUHVVXUHWHVWRIWKHFRROLQJV\VWHP
DQGSUHVVXUHFDSDQGFOHDQLQJWKHRXWVLGHRIWKHUDGLDWRUDQGDLUFRQGLWLRQLQJFRQGHQVHULVUHFRPPHQGHG
 0DNHVXUHWKHVDIHW\EHOWUHPLQGHUOLJKWDQGVDIHW\EHOWDVVHPEOLHVDUHZRUNLQJFRUUHFWO\/RRNIRUDQ\RWKHUORRVHRU
GDPDJHGVDIHW\EHOWV\VWHPSDUWV,I\RXVHHDQ\WKLQJWKDWPLJKWNHHSDVDIHW\EHOWV\VWHPIURPGRLQJLWVMREKDYHLW
UHSDLUHG(QVXUHDQ\WRUQRUIUD\HGVDIHW\EHOWVDUHUHSODFHG
 6HUYLFHDQGPDLQWHQDQFH

6HUYLFHRSHUDWLRQ 0DLQWHQDQFH, 0DLQWHQDQFH,,


,QVSHFWSRZHUWUDLQDQGGULYHOLQHFRPSRQHQWV ಥ ,
/XEULFDWHERG\FRPSRQHQWV ಥ ,

,,QVSHFWWKHVHLWHPVDQGWKHLUUHODWHGSDUWV,IQHFHVVDU\FRUUHFWFOHDQUHSOHQLVKDGMXVWRUUHSODFH
55HSODFHRUFKDQJH
6HUYLFHRSHUDWLRQ ,QWHUYDO
5HSODFHSROOHQILOWHU (YHU\NP\HDU
5HSODFHDLUILOWHU (YHU\NP\HDU
5HSODFHVSDUNSOXJV (YHU\NP\HDU
5HSODFHLJQLWLRQFDEOH IRUYHKLFOHVZLWKRXW(OHFWURQLF6WDELOLW\ (YHU\NP\HDU
&RQWURO 
5HSODFHHQJLQHFRRODQW (YHU\NP\HDU
5HSODFHPDQXDOWUDQVPLVVLRQRLO (YHU\NP\HDUV
5HSODFHDXWRPDWLFWUDQVPLVVLRQRLO ,QVSHFWRLOHYHU\NP\HDU5HSODFHHYHU\
NPIRUVHYHUHFRQGLWLRQV

 /XEULFDWHDOONH\ORFNF\OLQGHUVGRRUKLQJHVDQGODWFKHVKRRGKLQJHVDQGODWFKHVDQGWUXQNOLGKLQJHVDQGODWFKHV
0RUHIUHTXHQWOXEULFDWLRQPD\EHUHTXLUHGZKHQH[SRVHGWRDFRUURVLYHHQYLURQPHQW$SSO\LQJVLOLFRQHJUHDVHRQ
ZHDWKHUVWULSVZLWKDFOHDQFORWKZLOOPDNHWKHPODVWORQJHUVHDOEHWWHUDQGQRWVWLFNRUVTXHDN
 ,IGULYLQJUHJXODUO\LQGXVW\FRQGLWLRQVLQVSHFWWKHILOWHUPRUHIUHTXHQWO\7KHILOWHUPD\UHTXLUHUHSODFHPHQWPRUHRIWHQ
6HUYLFHDQGPDLQWHQDQFH 

6HUYLFHRSHUDWLRQ ,QWHUYDO
5HSODFHDX[LOLDU\EHOW 

5HSODFHWLPLQJFKDLQ (YHU\NP\HDUV
,QVSHFWYDOYHFOHDUDQFHDGMXVWLIUHTXLUHG (YHU\NP\HDUV

 ,IWKHEHOWKDVEHHQUHSODFHGLWPXVWEHLQVSHFWHGDQGWHQVLRQPXVWEHDGMXVWHGZLWKLQPRQWKVNP
 6HUYLFHDQGPDLQWHQDQFH

*HQHUDOPDLQWHQDQFHLWHPV
,WHP 6HUYLFHRSHUDWLRQ
$OO &KHFNDOOV\VWHPVIRULQWHUIHUHQFHRUELQGLQJDQGIRUGDPDJHGRUPLVVLQJSDUWV5HSODFHSDUWVDV
QHHGHG5HSODFHDQ\FRPSRQHQWVWKDWKDVH[FHVVLYHZHDU
$XWRPDWLF &KDQJHDXWRPDWLFWUDQVPLVVLRQIOXLGDQGILOWHULIWKHYHKLFOHLVPDLQO\GULYHQXQGHURQHRUPRUHRI
WUDQVPLVVLRQ WKHVHFRQGLWLRQV
,QKHDY\FLW\WUDIILFZKHUHWKHRXWVLGHWHPSHUDWXUHUHJXODUO\UHDFKHV¡&RUKLJKHU
,QKLOO\RUPRXQWDLQRXVWHUUDLQ
:KHQGRLQJIUHTXHQWWUDLOHUWRZLQJ
8VHVVXFKDVIRXQGLQWD[LSROLFHRUGHOLYHU\VHUYLFH
%HOWV 9LVXDOO\LQVSHFWEHOWIRUIUD\LQJH[FHVVLYHFUDFNVRUREYLRXVGDPDJH
5HSODFHEHOWLIQHFHVVDU\
7\UHFRQGLWLRQ 7\UHFRQGLWLRQVKRXOGEHLQVSHFWHGEHIRUHGULYLQJDQGW\UHSUHVVXUHVKRXOGEHFKHFNHGHDFKWLPH
LQIODWLRQSUHVVXUH \RXILOO\RXUIXHOWDQNRUDWOHDVWRQFHDPRQWKXVLQJDW\UHSUHVVXUHJDXJH
:KHHODOLJQPHQW ,IQHFHVVDU\URWDWHDQGEDODQFHZKHHOV
6HUYLFHDQGPDLQWHQDQFH 

$GGLWLRQDOVHUYLFLQJ 8QGHUH[WUHPHRSHUDWLQJFRQGLWLRQV 5HFRPPHQGHGIOXLGV


LWPD\EHQHFHVVDU\WRKDYHFHUWDLQ
([WUHPHRSHUDWLQJFRQGLWLRQV VFKHGXOHGVHUYLFHZRUNGRQHPRUH OXEULFDQWVDQGSDUWV
([WUHPHRSHUDWLQJFRQGLWLRQVDUH IUHTXHQWO\WKDQWKHVFKHGXOHG
JLYHQZKHQDWOHDVWRQHRIWKH LQWHUYDOV 5HFRPPHQGHGIOXLGVDQG
IROORZLQJRFFXUVIUHTXHQWO\ 6HHNWHFKQLFDODGYLFHRQWKH OXEULFDQWV
࿢ 5HSHDWHGVKRUWGLVWDQFHGULYLQJ VHUYLFLQJUHTXLUHPHQWVGHSHQGHQWRQ 2QO\XVHSURGXFWVWKDWKDYHEHHQ
OHVVWKDQNP WKHVSHFLILFRSHUDWLQJFRQGLWLRQV WHVWHGDQGDSSURYHG'DPDJH
࿢ ([WHQVLYHLGOLQJDQGRUVORZVSHHG UHVXOWLQJIURPWKHXVHRIQRQ
GULYLQJLQVWRSDQGJRWUDIILF DSSURYHGPDWHULDOVZLOOQRWEH
FRYHUHGE\WKHZDUUDQW\
࿢ 'ULYLQJRQGXVW\URDGV
࿢ 'ULYLQJRQKLOO\RUPRXQWDLQRXV  :DUQLQJ
WHUUDLQ
࿢ 7RZLQJDWUDLOHU 2SHUDWLQJPDWHULDOVDUH
KD]DUGRXVDQGFRXOGEH
࿢ 'ULYLQJLQKHDY\FLW\WUDIILFZKHUH
SRLVRQRXV+DQGOHZLWKFDUH3D\
WKHRXWVLGHWHPSHUDWXUHVUHJXODUO\
DWWHQWLRQWRLQIRUPDWLRQJLYHQRQ
UHDFK¡&RUKLJKHU
WKHFRQWDLQHUV
࿢ 'ULYLQJDVDWD[LSROLFHRUGHOLYHU\
YHKLFOH (QJLQHRLO
࿢ )UHTXHQWGULYLQJZKHQRXWVLGH (QJLQHRLOLVLGHQWLILHGE\LWVTXDOLW\
WHPSHUDWXUHUHPDLQVEHORZ DQGLWVYLVFRVLW\4XDOLW\LVPRUH
IUHH]LQJ LPSRUWDQWWKDQYLVFRVLW\ZKHQ
3ROLFHYHKLFOHVWD[LVDQGGULYLQJ VHOHFWLQJZKLFKHQJLQHRLOWRXVH
VFKRROYHKLFOHVDUHDOVRFODVVLILHGDV
RSHUDWLQJXQGHUH[WUHPHFRQGLWLRQV (QJLQHRLOTXDOLW\
$&($$%$3,603HWUROHQJLQHV
 6HUYLFHDQGPDLQWHQDQFH

7RSSLQJXSHQJLQHRLO 'RZQWR¡&:: IXQFWLRQSUREOHPV/LDELOLW\IRU


(QJLQHRLOVRIGLIIHUHQWPDQXIDFWXUHUV 'RZQWR¡&:: FRQVHTXHQFHVUHVXOWLQJIURPWKHXVH
DQGEUDQGVFDQEHPL[HGDVORQJDV RIFRRODQWDGGLWLYHVZLOOEHUHMHFWHG
7KH6$(YLVFRVLW\JUDGHJLYHV
WKH\FRPSO\ZLWKWKHUHTXLUHGHQJLQH
LQIRUPDWLRQRIWKHWKLFNQHVVRIWKHRLO %UDNHIOXLG
RLOTXDOLW\DQGYLVFRVLW\
0XOWLJUDGHRLOLVLQGLFDWHGE\WZR 2QO\XVHRXUDXWKRUL]HGEUDNHIOXLG
,IHQJLQHRLORIWKHUHTXLUHGTXDOLW\LV
ILJXUHV7KHILUVWILJXUHIROORZHGE\ IRUWKLVYHKLFOH '27 
QRWDYDLODEOHDPD[LPXPRIOLWUHRI
D:LQGLFDWHVWKHORZWHPSHUDWXUH
$%JUDGHPD\EHXVHG RQO\RQFH 2YHUWLPHEUDNHIOXLGDEVRUEV
YLVFRVLW\DQGWKHVHFRQGILJXUHWKH
EHWZHHQHDFKRLOFKDQJH 7KH PRLVWXUHZKLFKZLOOUHGXFHEUDNLQJ
KLJKWHPSHUDWXUHYLVFRVLW\
YLVFRVLW\VKRXOGEHRIWKHFRUUHFW HIIHFWLYHQHVV7KHEUDNHIOXLGVKRXOG
UDWLQJ WKHUHIRUHEHUHSODFHGDWWKHVSHFLILHG
&RRODQWDQGDQWLIUHH]H LQWHUYDO
8VHRIHQJLQHRLOZLWKRQO\ 8VHRQO\RUJDQLFDFLGW\SHORQJOLIH
$&($$%RURQO\$%TXDOLW\LV FRRODQW //& DQWLIUHH]H %UDNHIOXLGVKRXOGEHVWRUHGLQ
H[SOLFLWO\SURKLELWHGVLQFHLWFDQ DVHDOHGFRQWDLQHUWRDYRLGZDWHU
FDXVHORQJWHUPHQJLQHGDPDJH ,QFRXQWULHVZLWKPRGHUDWHFOLPDWH DEVRUSWLRQ
XQGHUFHUWDLQRSHUDWLQJFRQGLWLRQV WKHFRRODQWSURYLGHVIUHH]HSURWHFWLRQ
GRZQWRDSSUR[¡&,QFRXQWULHV (QVXUHEUDNHIOXLGGRHVQRWEHFRPH
ZLWKFROGFOLPDWHWKHFRRODQWSURYLGHV FRQWDPLQDWHG
$GGLWLRQDOHQJLQHRLODGGLWLYHV
7KHXVHRIDGGLWLRQDOHQJLQHRLO IUHH]HSURWHFWLRQGRZQWRDSSUR[
¡&7KLVFRQFHQWUDWLRQVKRXOGEH 3RZHUVWHHULQJIOXLG
DGGLWLYHVFRXOGFDXVHGDPDJHDQG 2QO\XVH'H[URQ9,IOXLG
LQYDOLGDWHWKHZDUUDQW\ PDLQWDLQHGDOO\HDUURXQG
0DLQWDLQDVXIILFLHQWFRQFHQWUDWLRQRI 0DQXDOWUDQVPLVVLRQIOXLG
(QJLQHRLOYLVFRVLW\JUDGHV DQWLIUHH]H
8VHRQO\WKHIROORZLQJHQJLQHRLO 2QO\XVH;*36$(::IOXLG
&RRODQWDGGLWLYHVLQWHQGHGWRJLYH
YLVFRVLWLHV DGGLWLRQDOFRUURVLRQSURWHFWLRQRUVHDO $XWRPDWLFWUDQVPLVVLRQIOXLG
$&($$%$3,60 DJDLQVWPLQRUOHDNVFDQFDXVH 8VH0DWLF'-:6 3URSRUWLRQ
'RZQWR¡&DQGEHORZ:  
:
7HFKQLFDOGDWD 

7HFKQLFDOGDWD 9HKLFOHLGHQWLILFDWLRQ ,GHQWLILFDWLRQSODWH


9HKLFOH,GHQWLILFDWLRQ 7\SH
9HKLFOHLGHQWLILFDWLRQ   1XPEHU
9HKLFOHGDWD  

7KHODEHOLVDWWDFKHGQHDUWKHGULYHUಫV
GRRUODWFK
7KHYHKLFOHLGHQWLILFDWLRQQXPEHULV
ORFDWHGXQGHUWKHUHDUVHDWFXVKLRQ
 7HFKQLFDOGDWD

7\SH

7KHODEHOLVDWWDFKHGQHDUWKHIURQW
SDVVHQJHUಫVGRRUODWFK
7HFKQLFDOGDWD 

9HKLFOHGDWD
(QJLQHGDWD
6DOHVGHVLJQDWLRQ 3HWURO 3HWURO
(QJLQH ' '
(QJLQHLGHQWLILHUFRGH /07 /08
1XPEHURIF\OLQGHUV  
3LVWRQGLVSODFHPHQW>FP@  
(QJLQHSRZHU>N:@  
DWUSP  
7RUTXH>1P@  
DWUSP  
)XHOW\SH 3HWURO 3HWURO
2FWDQHUDWLQJ521
UHFRPPHQGHG  
SRVVLEOH  
 7HFKQLFDOGDWD

3HUIRUPDQFH
(QJLQH ' '
7RSVSHHG >NPK@
0DQXDOWUDQVPLVVLRQ  

)XHOFRQVXPSWLRQ&2HPLVVLRQV
0DQXDOWUDQVPLVVLRQZLWKRXWSRZHUVWHHULQJ0DQXDOWUDQVPLVVLRQZLWKSRZHUVWHHULQJ
(QJLQH ' 1RQ(6& ' (6& ' 1RQ(6& '(6&
XUEDQ>ONP@    
H[WUDXUEDQ>ONP@    
WRWDO>ONP@    
&2>JNP@    

 7KHPD[LPXPVSHHGLQGLFDWHGLVDFKLHYDEOHDWNHUEZHLJKW ZLWKRXWGULYHU SOXVNJSD\ORDG2SWLRQDOHTXLSPHQW


FRXOGUHGXFHWKHVSHFLILHGPD[LPXPVSHHGRIWKHYHKLFOH
7HFKQLFDOGDWD 

5XVVLD 8]EHNLVWDQ
0DQXDOWUDQVPLVVLRQZLWKSRZHUVWHHULQJDXWRPDWLFWUDQVPLVVLRQZLWKSRZHUVWHHULQJ
(QJLQH ' '
XUEDQ>ONP@  ಥ
H[WUDXUEDQ>ONP@  ಥ
WRWDO>ONP@  ಥ
&2>JNP@  ಥ

9HKLFOHZHLJKW
0LQLPXPNHUEZHLJKWZLWKGULYHU NJ
(QJLQH 0DQXDOWUDQVPLVVLRQZLWKRXWSRZHUVWHHULQJ 0DQXDOWUDQVPLVVLRQZLWKSRZHUVWHHULQJ
>NJ@ '  
'  

0D[LPXPNHUEZHLJKWZLWKGULYHU NJ
(QJLQH 0DQXDOWUDQVPLVVLRQZLWKRXWSRZHUVWHHULQJ 0DQXDOWUDQVPLVVLRQZLWKSRZHUVWHHULQJ
>NJ@ '  
'  
 7HFKQLFDOGDWD

*URVVYHKLFOHZHLJKW
(QJLQH 0DQXDOWUDQVPLVVLRQZLWKRXWSRZHUVWHHULQJ 0DQXDOWUDQVPLVVLRQZLWKSRZHUVWHHULQJ
>NJ@ '  
'  

9HKLFOHGLPHQVLRQV
/HQJWK>PP@ 
:LGWKZLWKRXWH[WHULRUPLUURUV>PP@ 
:LGWKZLWKWZRH[WHULRUPLUURUV>PP@ 
+HLJKW ZLWKRXWDQWHQQD >PP@ZLWKRXWURRIUDFN 
+HLJKW ZLWKRXWDQWHQQD >PP@ZLWKURRIUDFN 
/HQJWKRIORDGFRPSDUWPHQWIORRU>PP@ 
/RDGFRPSDUWPHQWZLGWK>PP@ 
/RDGFRPSDUWPHQWKHLJKW>PP@ 
:KHHOEDVH>PP@ 
7XUQLQJFLUFOHGLDPHWHU>P@ 
7HFKQLFDOGDWD 

&DSDFLWLHV
(QJLQHRLO
(QJLQH '2+& '2+&
LQFOXGLQJ)LOWHU>O@  
EHWZHHQ0,1DQG0$;>O@  

)XHOWDQN
3HWUROQRPLQDOFDSDFLW\>O@ 

7\UHSUHVVXUHV
(QJLQH 7\UHV &RPIRUWZLWKXSWRSHRSOH (&2ZLWKXSWRSHRSOH :LWKIXOOORDG
IURQW UHDU IURQW UHDU IURQW UHDU
>N3DEDU@ >N3DEDU@ >N3DEDU@ >N3DEDU@
>SVL@ >SVL@ >SVL@ >SVL@ >N3DEDU@ >SVL@ >N3DEDU@ >SVL@
' 5            
' 5
5
$OO &RPSDFWVSDUH          
WLUH
 &XVWRPHULQIRUPDWLRQ

9HKLFOHGDWDUHFRUGLQJ VHUYLFHKLVWRU\RIWKHYHKLFOH7KLV
&XVWRPHULQIRUPDWLRQ HQDEOHVWKHZRUNVKRSWRRIIHU\RX
DQGSULYDF\ HIILFLHQWPDLQWHQDQFHDQGUHSDLU
WDLORUHGWR\RXULQGLYLGXDOYHKLFOH
9HKLFOHGDWDUHFRUGLQJDQG (YHQWGDWDUHFRUGHUV HDFKWLPH\RXEULQJLWEDFNWRWKH
SULYDF\   7KHYHKLFOHKDVDQXPEHURI ZRUNVKRS
VRSKLVWLFDWHGV\VWHPVWKDWPRQLWRU 7KHPDQXIDFWXUHUZLOOQRWDFFHVV
DQGFRQWUROVHYHUDOYHKLFOHGDWD GULYHUಫVEHKDYLRUUHODWHGLQIRUPDWLRQ
6RPHGDWDPD\EHVWRUHGGXULQJ DERXWDFUDVKHYHQWRUVKDUHLWZLWK
UHJXODURSHUDWLRQWRIDFLOLWDWHUHSDLURI RWKHUVH[FHSW
GHWHFWHGPDOIXQFWLRQVRWKHUGDWDLV ࿢ ZLWKWKHFRQVHQWRIWKHYHKLFOH
VWRUHGRQO\LQDFUDVKRUQHDUFUDVK RZQHURULIWKHYHKLFOHLVOHDVHGRI
HYHQWE\PRGXOHVLQ\RXUYHKLFOH WKHOHVVHH
V\VWHPVWKDWKDYHDQHYHQWGDWD
UHFRUGLQJIXQFWLRQVXFKDVWKHDLUEDJ ࿢ LQUHVSRQVHWRDQRIILFLDOUHTXHVWRI
FRQWUROPRGXOH SROLFHRUVLPLODUJRYHUQPHQWRIILFH
7KHV\VWHPVPD\UHFRUGGLDJQRVWLF ࿢ DVSDUWRIWKHPDQXIDFWXUHUಫV
GDWDDERXWWKHFRQGLWLRQRIWKHYHKLFOH GHIHQVHLQFDVHRIOHJDO
HJRLOOHYHORUYHKLFOHPLOHDJH DQG SURFHHGLQJV
LQIRUPDWLRQKRZLWZDVRSHUDWHG HJ ࿢ DVUHTXLUHGE\ODZ
HQJLQHVSHHGEUDNHDSSOLFDWLRQDQG
VHDWEHOWXVDJH 
7RUHDGWKLVGDWDVSHFLDOHTXLSPHQW
DQGDFFHVVWRWKHYHKLFOHLVUHTXLUHG
6RPHGLDJQRVWLFGDWDLVHOHFWURQLFDOO\
IHGLQWR&KHYUROHWJOREDOV\VWHPV
ZKHQWKHYHKLFOHLVVHUYLFHGLQ
DZRUNVKRSLQRUGHUWRGRFXPHQWWKH
&XVWRPHULQIRUPDWLRQ 

,QDGGLWLRQWKHPDQXIDFWXUHUPD\XVH 5DGLR)UHTXHQF\
WKHFROOHFWHGRUUHFHLYHGGLDJQRVWLF
GDWD ,GHQWLILFDWLRQ 5),'
࿢ IRUWKHPDQXIDFWXUHU
VUHVHDUFK 5),'WHFKQRORJ\LVXVHGLQVRPH
QHHGV YHKLFOHVIRUIXQFWLRQVVXFKDVW\UH
SUHVVXUHPRQLWRULQJDQGLJQLWLRQ
࿢ WRPDNHLWDYDLODEOHIRUUHVHDUFK
V\VWHPVHFXULW\,WLVDOVRXVHGLQ
QHHGVZKHUHDSSURSULDWH
FRQQHFWLRQZLWKFRQYHQLHQFHVVXFK
FRQILGHQWLDOLW\LVPDLQWDLQHGDQG
DVUDGLRUHPRWHFRQWUROVIRUGRRU
QHHGLVVKRZQ
ORFNLQJXQORFNLQJDQGVWDUWLQJDQGLQ
࿢ WRVKDUHVXPPDU\GDWDZKLFKLVQRW YHKLFOHWUDQVPLWWHUVIRUJDUDJHGRRU
WLHGWRDVSHFLILFYHKLFOHZLWKRWKHU RSHQHUV5),'WHFKQRORJ\LQ
RUJDQLVDWLRQVIRUUHVHDUFK &KHYUROHWYHKLFOHVGRHVQRWXVHRU
SXUSRVHV UHFRUGSHUVRQDOLQIRUPDWLRQRUOLQN
ZLWKDQ\RWKHU&KHYUROHWV\VWHP
FRQWDLQLQJSHUVRQDOLQIRUPDWLRQ


,QGH[ $ &
$FFHVVRULHVDQGYHKLFOH &DSDFLWLHV 
PRGLILFDWLRQV  &DWDO\WLFFRQYHUWHU 
$GGLWLRQDOVHUYLFLQJ  &'SOD\HU 
$GMXVWDEOHDLUYHQWV  &HQWUDOORFNLQJV\VWHP 
$LUEDJDQGEHOWWHQVLRQHUV  &HQWUHKLJKPRXQWHGEUDNH
$LUEDJGHDFWLYDWLRQ  OLJKW 
$LUEDJV\VWHP  &KDQJLQJW\UHDQGZKHHOVL]H   
$LUFRQGLWLRQLQJUHJXODU &KDUJLQJV\VWHP 
RSHUDWLRQ  &KLOGORFNV 
$LUFRQGLWLRQLQJV\VWHP  &KLOGUHVWUDLQWLQVWDOODWLRQ
$LULQWDNH  ORFDWLRQV 
$QWLORFNEUDNHV\VWHP  &KLOGUHVWUDLQWV\VWHPV 
$QWLORFNEUDNHV\VWHP $%6   &LJDUHWWHOLJKWHU 
$VKWUD\V  &OLPDWHFRQWURO 
$XWRPDWLFWUDQVPLVVLRQ  &ORFN 
$XWRPDWLFWUDQVPLVVLRQIOXLG  &RQWUROHOHPHQWVRYHUYLHZ 
$8;LQSXW  &RQWUROLQGLFDWRUV 
&RQWURORIWKHYHKLFOH 
% &RQYHQLHQFHQHW 
%DWWHU\  &RQYH[VKDSH 
%DWWHU\GLVFKDUJHSURWHFWLRQ  &RRODQWDQGDQWLIUHH]H 
%RQQHW  &XSKROGHUV 
%UDNHDVVLVW  &XUWDLQDLUEDJV\VWHP 
%UDNHIOXLG 
%UDNHV  '
%UDNHV\VWHP  'DQJHU:DUQLQJVDQG&DXWLRQV   
%XOEUHSODFHPHQW  'D\WLPHUXQQLQJOLJKWV 
'RRURSHQ 


( )XHOFRQVXPSWLRQ&2 ,
(OHFWULFDGMXVWPHQW  HPLVVLRQV  ,GHQWLILFDWLRQSODWH 
(OHFWURQLFFOLPDWHFRQWUROV\VWHP  )XHOIRUSHWUROHQJLQHV  ,JQLWLRQVZLWFKSRVLWLRQV 
(OHFWURQLF6WDELOLW\&RQWURO   )XHOJDXJH  ,PPRELOLVHU 
(OHFWURQLF6WDELOLW\&RQWURORII  )XVHV  ,QVWUXPHQWSDQHOIXVHER[ 
(QGRIOLIHYHKLFOHUHFRYHU\  ,QVWUXPHQWSDQHORYHUYLHZ 
(QJLQHDLUILOWHU 
* ,QVWUXPHQWSDQHOVWRUDJH 
(QJLQHFRPSDUWPHQWIXVHER[  *HQHUDOLQIRUPDWLRQ  ,QWHULRUFDUH 
(QJLQHFRPSDUWPHQWRYHUYLHZ  *ORYHER[  ,QWHULRUOLJKWV 
(QJLQHFRRODQW  + ,QWHUUXSWLRQRISRZHUVXSSO\ 
(QJLQHFRRODQWWHPSHUDWXUH  +DQGEUDNH  ,QWURGXFWLRQ 
(QJLQHGDWD  +D]DUGZDUQLQJIODVKHUV  ,62),;FKLOGUHVWUDLQWV\VWHPV 
(QJLQHH[KDXVW  +HDGOLJKWIODVK 
(QJLQHRLO  -
+HDGOLJKWUDQJHDGMXVWPHQW  -XPSVWDUWLQJ 
(QJLQHRLOSUHVVXUH  +HDGOLJKWV 
(YHQWGDWDUHFRUGHUV  +HDGOLJKWVZKHQGULYLQJDEURDG   .
([WHULRUFDUH  +HDGUHVWUDLQWDGMXVWPHQW  .H\V 
([WHULRUOLJKWLQJ  +HDGUHVWUDLQWV 
+HDWHG  /
) /LJKWVZLWFK 
)DXOW  +HDWHGH[WHULRUPLUURUV 
+HDWHGIURQWVHDWV  /RDGFRPSDUWPHQW 
)L[HGDLUYHQWV  /RDGLQJLQIRUPDWLRQ 
)L[HGPDVWDQWHQQD  +HDWHGUHDUZLQGRZ 
+HDWLQJ  /RZIXHO 
)RJOLJKW 
)ROGLQJ  +HDWLQJDQGYHQWLODWLRQV\VWHP    0
)ROGLQJH[WHULRUPLUURU  +LJKEHDP 
0DOIXQFWLRQLQGLFDWRUOLJKW 
)URQWDLUEDJV\VWHP  +RUQ 
0DQXDODGMXVWPHQW 
)URQWIRJOLJKWV  0DQXDODQWLGD]]OH 
0DQXDOWUDQVPLVVLRQ 


0DQXDOZLQGRZV  5HFRPPHQGHGIOXLGVDQG 7KHIWGHWHUUHQWIHDWXUH 


0LUURUDGMXVWPHQW  OXEULFDQWV  7KUHHSRLQWVHDWEHOW 
5HIXHOOLQJ  7RROV 
1 5HYHUVLQJOLJKWV  7RSWHWKHUIDVWHQLQJH\HV 
1HZYHKLFOHUXQQLQJLQ  5RRIUDFN  7RZLQJDQRWKHUYHKLFOH 
1XPEHUSODWHOLJKW  7RZLQJWKHYHKLFOH 
6 7UDQVPLVVLRQ 
2 6HDWDGMXVWPHQW 
2GRPHWHU  7UDQVPLVVLRQIOXLG 
6HDWEHOW  7UHDGGHSWK 
2YHUGULYHRII  6HDWEHOWUHPLQGHU  7ULSFRPSXWHU 
3 6HDWEHOWV  7XUQDQGODQHFKDQJHVLJQDOV 
3DUNLQJ  6HDWSRVLWLRQ  7XUQVLJQDO 
3DUNLQJDVVLVW  6HOHFWRUOHYHU  7\UHFKDLQV 
3DUNLQJEUDNH  6HUYLFH  7\UHFKDQJLQJ 
3HUIRUPDQFH  6HUYLFHLQIRUPDWLRQ  7\UHGHVLJQDWLRQV 
3HUIRUPLQJZRUN  6HUYLFHVFKHGXOHV  7\UHSUHVVXUH 
3ROOHQILOWHU  6LGHDLUEDJV\VWHP  7\UHSUHVVXUHV 
3RZHURXWOHWV  6LGHWXUQVLJQDOOLJKWV  7\UHUHSDLUNLW 
3RZHUVWHHULQJIOXLG  6SDUHZKHHO 
3RZHUZLQGRZV  6SHHGRPHWHU  8
6WDUWLQJRII  8QGHUVHDWVWRUDJH 
5 6WDUWLQJWKHHQJLQH  8VDJH 
5DGLR)UHTXHQF\,GHQWLILFDWLRQ 6WHHULQJZKHHODGMXVWPHQW  86%XVDJH 
5),'   6WHHULQJZKHHOFRQWUROV  8VLQJWKLVPDQXDO 
5DGLRUHFHSWLRQ  6XQJODVVHVVWRUDJH 
5DGLRUHPRWHFRQWURO  6XQYLVRUV  9
5HDUIRJOLJKW  9HKLFOHGLPHQVLRQV 
5HDUIRJOLJKWV 
7 9HKLFOH,GHQWLILFDWLRQ1XPEHU 
5HDUZLQGRZZLSHUZDVKHU  7DFKRPHWHU  9HKLFOHVWRUDJH 
7DLOOLJKWV  9HKLFOHXQORFNLQJ 


9HKLFOHZHLJKW 
9HQWLODWLRQ 
:
:DVKHUDQGZLSHUV\VWHPV 
:DVKHUIOXLG 
:KHHOFKDQJLQJ 
:KHHOFRYHUV 
:KHHOVDQGW\UHV 
:LQGVFUHHQZLSHUZDVKHU 
:LQWHUW\UHV 
:LSHUEODGHUHSODFHPHQW 


You might also like