Ata 27

Boeing 777-200/300 (GE 90 & RR TRENT 800 & PW 4000)
General Familiarisation & ATAs of Cabin Interior GENERAL FAMILIARISATION
ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 380

35,0$5<)/,*+7&21752/6<67(0,1752'8&7,21
3XUSRVH 6SHHGEUDNHV
7KHSULPDU\IOLJKWFRQWUROV\VWHP 3)&6 FRQWUROVWKH 7KH3)&6DOVRLQFOXGHVWKHVSHHGEUDNHV7KHVSRLOHUV

DLUSODQHIOLJKWDWWLWXGHLQUHODWLRQWRWKHWKUHHEDVLF QRWRQO\VXSSO\UROOFRQWUROEXWDOVRDUHVSHHGEUDNHV
D[HV LQWKHDLUDQGRQWKHJURXQG7KH\H[WHQGRQWKHWZR
ZLQJVWRLQFUHDVHGUDJDQGWRGHFUHDVHWKHOLIW
/RQJLWXGLQDO VXSSOLHGE\WKHZLQJV
/DWHUDO
9HUWLFDO
5ROO&RQWURO
7KHUROOFRQWUROXVHVWKHDLOHURQVIODSHURQVDQG
VSRLOHUVWRFRQWUROWKHDLUSODQHDWWLWXGHDURXQGWKH
ORQJLWXGLQDOD[LV'XULQJDEDQNRIWKHDLUSODQHWKH
DLOHURQDQGIODSHURQRQRQHZLQJPRYHLQDQRSSRVLWH
GLUHFWLRQIURPWKHDLOHURQDQGIODSHURQRQWKHRWKHU
ZLQJ7KHVSRLOHUVPRYHXSRQO\RQWKHGRZQZLQJDQGGR
QRWPRYHRQWKHXSZLQJ
3LWFK&RQWURO
7KHSLWFKFRQWUROXVHVWKHKRUL]RQWDOVWDELOL]HUDQG
WKHHOHYDWRUWRFRQWUROWKHDLUSODQHDWWLWXGHDURXQG
WKHODWHUDOD[LV7KHVWDELOL]HUFRQWUROVORQJWHUP
SLWFKFKDQJHV7KHHOHYDWRUVXSSOLHVVKRUWWHUPSLWFK
FRQWURO
<DZ&RQWURO
7KH\DZFRQWUROXVHVWKHUXGGHUWRFRQWUROWKHDLUSODQH
DWWLWXGHDURXQGWKHYHUWLFDOD[LV7KHUXGGHUKDVDWDE
WKDWPRYHVWRLQFUHDVHWKHHIIHFWLYHQHVVRIWKHUXGGHU

58''(5
58''(57$%
$,/(521
(/(9$725
632,/(56
+25,=217$/
)/$3(521 67$%,/,=(5
/$7(5$/$;,6
)/$3(521
632,/(56
$,/(521
/21*,78',1$/$;,6
9(57,&$/$;,6
3,7&+&21752/
52//&21752/
<$:&21752/
35,0$5<)/,*+7&21752/6<67(0,1752'8&7,21

3)&6*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

3)&6*(1(5$/'(6&5,37,21
*HQHUDO 7KH3)&VXVHWKHFRQWUROODZVDQGWKHSURWHFWLRQ
IXQFWLRQVIRUWKHIOLJKWHQYHORSHWRFDOFXODWHWKH
7KHSLORWVRUWKHDXWRSLORWFRPPDQGVFRQWUROWKH IOLJKWFRQWUROFRPPDQGV7KHFRQWUROODZVVXSSO\WKH
SULPDU\IOLJKWFRQWUROV\VWHP 3)&6 7KHSLORWVFDQ VWDELOLW\DXJPHQWDWLRQLQWKHSLWFKDQG\DZD[HV7KH\
RYHUULGHWKHDXWRSLORW JLYHIOLJKWHQYHORSHSURWHFWLRQVLQDOOWKUHHD[HV7KH
GLJLWDOFRPPDQGVLJQDOVIURPWKH3)&VJRWRWKH$&(V
0DQXDO2SHUDWLRQ
7KH$&(VFKDQJHWKHVHVLJQDOVWRDQDQDORJIRUPDW7KH\
3RVLWLRQDQGIRUFHWUDQVGXFHUVFKDQJHPDQXDOFRPPDQGV VHQGWKHPWRWKHSRZHUFRQWUROXQLWV 3&8V DQGWRWKH
IURPWKHSLORWVIRUWKHVHIOLJKWFRQWUROFRPSRQHQWVWR VWDELOL]HUWULPFRQWUROPRGXOHV 67&0V 7KH$&(VDQG
DQDORJHOHFWULFDOVLJQDOV WKH3&8VIRUPFRQWUROORRSV7KHVHXVHWKH3)&V
FRPPDQGVWRFRQWUROWKHVXUIDFHV
&RQWUROZKHHO
&RQWUROFROXPQV 2QHWZRRUWKUHH3&8VRSHUDWHHDFKFRQWUROVXUIDFH
5XGGHUSHGDOV 2QH3&8FRQWUROVHDFKVSRLOHU7ZR3&8VFRQWUROHDFK
6SHHGEUDNHOHYHU DLOHURQIODSHURQDQGHOHYDWRU7KUHH3&8VFRQWUROWKH
UXGGHU7KH3&8VKDYHWKHVHFRPSRQHQWV
7KHVHVLJQDOVJRWRWKHIRXUDFWXDWRUFRQWURO
HOHFWURQLFV $&(V 7KH$&(VFKDQJHWKHVLJQDOVWR $QK\GUDXOLFDFWXDWRU
GLJLWDOIRUPDWDQGVHQGWKHPWRWKHWKUHHSULPDU\ $QHOHFWURK\GUDXOLFVHUYRYDOYH
IOLJKWFRPSXWHUV 3)&V $SRVLWLRQIHHGEDFNWUDQVGXFHU
7KH3)&VKDYHLQWHUIDFHVZLWKWKHDLUSODQHV\VWHPV :KHQFRPPDQGHGWKHVHUYRYDOYHFDXVHVWKHK\GUDXOLF
WKURXJKWKHWKUHHIOLJKWFRQWUROV$5,1&EXVHV,Q DFWXDWRUWRPRYHWKHFRQWUROVXUIDFH7KHSRVLWLRQ
DGGLWLRQWRFRPPDQGVLJQDOVIURPWKH$&(VWKH3)&V WUDQVGXFHUVHQGVDSRVLWLRQIHHGEDFNVLJQDOWRWKH
DOVRUHFHLYHGDWDIURP $&(V7KH$&(VWKHQVWRSWKH3&8FRPPDQGZKHQWKH
SRVLWLRQIHHGEDFNVLJQDOLVWKHVDPHDVWKHFRPPDQGHG
7KHDLUSODQHLQIRUPDWLRQPDQDJHPHQWV\VWHP $,06 SRVLWLRQ
7KHDLUGDWDLQHUWLDOUHIHUHQFHXQLW $',58
7KHVHFRQGDU\DWWLWXGHDLUGDWDUHIHUHQFHXQLW 7ZRVWDELOL]HUWULPFRQWUROPRGXOHV 67&0V FRQWURO
6$$58 K\GUDXOLFSRZHUWRWKHPRWRUVDQGEUDNHVRIWKH
KRUL]RQWDOVWDELOL]HUEDOOVFUHZDFWXDWRU QRWVKRZQ

3)&6*(1(5$/'(6&5,37,21
$XWRSLORW2SHUDWLRQ ,QGLUHFWPRGHWKH3)&VDUHQRWXVHG7KH$&(VVHWWKH
SRVLWLRQRIWKHFRQWUROVXUIDFHVLQGLUHFWUHVSRQVHWR
7KH3)&VUHFHLYHDXWRSLORWFRPPDQGVIURPDOOWKUHH WKHDQDORJFRQWUROLQSXWVIURPWKHSLORWV
DXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V 7KH3)&V
XVHWKHDXWRSLORWFRPPDQGVLQWKHVDPHPDQQHUDVWKH
SLORWVPDQXDOFRPPDQGV7KH3)&VDOVRVXSSO\WKH
EDFNGULYHVLJQDOVWRWKHEDFNGULYHDFWXDWRUVWKURXJK
WKH$)'&V7KHEDFNGULYHDFWXDWRUVPRYHWKHFRQWURO
ZKHHOVFRQWUROFROXPQVDQGUXGGHUSHGDOVLQ
V\QFKURQL]DWLRQZLWKWKHDXWRSLORWFRPPDQGV7KH
PRYHPHQWRIWKHIOLJKWGHFNFRQWUROVVXSSOLHVYLVXDO
LQGLFDWLRQVWRWKHIOLJKWFUHZ
3)&60RGHVRI2SHUDWLRQ
7KH3)&6KDVWKHVHWKUHHPRGHVRIRSHUDWLRQ
1RUPDO
6HFRQGDU\
'LUHFW
1RUPDOPRGHRSHUDWHVZKHQWKHQHFHVVDU\GDWDDUH
DYDLODEOHIRUWKH3)&VDQGWKH$&(V$OOWKHFRQWURO
ODZVSURWHFWLRQIXQFWLRQVDQGWKH$)'&VRSHUDWH
:KHQWKH3)&6GHWHFWVWKHORVVRILPSRUWDQWDLUDQG
DWWLWXGHGDWDWKH3)&6RSHUDWLRQFKDQJHVWRVHFRQGDU\
PRGH7KH3)&VDQGWKH$&(VRSHUDWHEXWWKH3)&FRQWURO
ODZVDQGSURWHFWLRQIXQFWLRQVGRZQJUDGH7KHDXWRSLORW
FDQQRWRSHUDWHLQVHFRQGDU\PRGH

63(('%5$.(
/(9(5
3&8
7<3
$1$/2*
$1$/2*
&21752/
$1$/2* 685)$&(6
67&0
326,7,21
75$16'8&(56
$&(
)25&(
75$16'8&(56
%$&.'5,9(
$&78$7256 ',*,7$/
3)&
)/,*+7&21752/6
$5,1&%86
$1$/2* $,06
&$%,1(76 $',58 6$$58
$)'&
0(&+$1,&$/
&211(&7,21
3)&6*(1(5$/'(6&5,37,21

3)&6)/,*+7&21752/6$5,1&%86,17(5)$&(6
7+,63$*(,17(17,21$//</()7%/$1.

3)&6)/,*+7&21752/6$5,1&%86,17(5)$&(6
*HQHUDO FRQWUROGDWDIURPLWVRQVLGH3)&,IWKLVGDWDLVQRW
YDOLGWKH$&(SURFHVVHVGDWDIURPDQDOWHUQDWH3)&
$5,1&GLJLWDOGDWDEXVHVVXSSO\WKHSULQFLSDOPHDQV 7KH$&(VSURFHVVVRPHGDWDIURPWKHRWKHU3)&VDWDOO
RIFRPPXQLFDWLRQDPRQJDLUSODQHV\VWHPV7KUHH WLPHV)RUH[DPSOHWKLVRFFXUVGXULQJGDWDYDOLGDWLRQ
GHGLFDWHGIOLJKWFRQWUROV$5,1&EXVHVFRQQHFWWKH DQGYRWHGFRPPDQGV7KH$&(VWUDQVPLWRQO\RQWKHLURQ
3)&6WR VLGHEXV
7KHWKUHHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'6,QWHUIDFH
$)'&
7KHWZRDLUSODQHLQIRUPDWLRQPDQDJHPHQWV\VWHP 7KHDXWRSLORWIOLJKWGLUHFWRUV\VWHP $)'6 LQWHUIDFHV
$,06 FDELQHWV ZLWKWKH3)&6WKURXJKWKHDXWRSLORWIOLJKWGLUHFWRU
7KHDLUGDWDLQHUWLDOUHIHUHQFHXQLW $',58 FRPSXWHUV $)'&V (DFK$)'&WUDQVPLWVWRLWVRQVLGH
7KHVHFRQGDU\DWWLWXGHDLUGDWDUHIHUHQFHXQLW IOLJKWFRQWUROVGDWDEXVEXWUHFHLYHVGDWDIURPDOO
6$$58 WKUHHEXVHV7KH$)'&VUHFHLYHEDFNGULYHFRPPDQGV
HQJDJHPHQWVWDWXVDQGRWKHUGDWDIURPWKH3)&V7KH
3K\VLFDOVHSDUDWLRQRIWKHEXVHVDQGUHGXQGDQW/58V $)'&VWUDQVPLWSLWFKUROODQG\DZFRPPDQGVDQGHQJDJH
SURWHFWVDJDLQVWPXOWLSOHIDLOXUHVGXHWRRQHHYHQW UHTXHVWVWRWKH3)&V
3)&6,QWHUIDFH $,06,QWHUIDFH
7KHWKUHHSULPDU\IOLJKWFRPSXWHUV 3)&V DQGWKHIRXU 7KHWZR$,06FDELQHWVUHFHLYHGDWDIURPDOOWKUHH

DFWXDWRUFRQWUROHOHFWURQLFV $&(V KDYHLQWHUIDFHV IOLJKWFRQWUROVGDWDEXVHVEXWQRUPDOO\WUDQVPLWRQO\
ZLWKWKHIOLJKWFRQWUROVGDWDEXVHV WRWKHLURQVLGHEXV'XULQJWHVWVRQWKHJURXQGWKH
$,06FDELQHWVWUDQVPLWDOVRWRWKHFHQWHUEXV
7KH/3)&&3)&DQG53)&UHFHLYHGDWDIURPDOOWKUHH
IOLJKWFRQWUROVGDWDEXVHV7KH\RQO\WUDQVPLWGDWDRQ 7KH3)&6VXSSOLHVLQIRUPDWLRQWRWKH$,06IRU
WKHLURQVLGHGDWDEXV 2QVLGHPHDQVWKDWWKH
UHODWLRQVKLSLVZLWKHTXLSPHQWRIWKHVDPHVLGH)RU 7KHSULPDU\GLVSOD\V\VWHP 3'6 IOLJKW
H[DPSOHWKHOHIWEXVLVWKHRQVLGHEXVIRUWKHOHIW V\QRSWLFDQG(,&$6GLVSOD\V
3)& 7KHFHQWUDOPDLQWHQDQFHFRPSXWLQJV\VWHP &0&6
7KHDLUSODQHFRQGLWLRQPRQLWRULQJV\VWHP $&06
(DFK$&(JHWVGDWDIURPDOOWKUHH3)&VWKURXJKWKH 7KHIOLJKWPDQDJHPHQWFRPSXWLQJV\VWHP )0&6
WKUHHIOLJKWFRQWUROVGDWDEXVHV(DFK$&(SURFHVVHV

3)&6)/,*+7&21752/6$5,1&%86,17(5)$&(6
$',56,QWHUIDFH
7KHDLUGDWDLQHUWLDOUHIHUHQFHV\VWHP $',56 FRQVLVWV

RIWKHDLUGDWDLQHUWLDOUHIHUHQFHXQLW $',58 DQGWKH
VHFRQGDU\DWWLWXGHDLUGDWDUHIHUHQFHXQLW 6$$58
7KH$',58DQG6$$58VXSSO\DLUGDWDYDULDEOHVDQG
LQHUWLDOGDWDWRWKH3)&V7KH$',58UHFHLYHVGDWDIURP
DOOWKUHHEXVHV,WWUDQVPLWVGDWDWRWKHOHIWDQG
ULJKWIOLJKWFRQWUROVGDWDEXVHV7KH6$$58DOVR
UHFHLYHVGDWDRQDOOWKUHHEXVHV,WWUDQVPLWVGDWD
RQO\WRWKHFHQWHUIOLJKWFRQWUROVGDWDEXV
$LU'DWD0RGXOHV
6L[DLUGDWDPRGXOHV $'0V VXSSO\SLWRWDQGVWDWLFDLU

GDWDWRWKH$',58DQGWKH6$$587KH$'0VWUDQVPLW
WKHVHGDWDWKURXJKWKHIOLJKWFRQWUROV$5,1&EXVHV

/$,06 5$,06
&$%,1(7 &$%,1(7 /$)'& &$)'& 5$)'& $',58 6$$58 $'0
)/,*+7&21752/6
$5,1&%86(6
/
&
5
/3)& &3)& 53)&

/ /$&( &$&( 5$&(
3)&6)/,*+7&21752/6$5,1&%86,17(5)$&(6

3)&6(/(&75,&$/32:(5',675,%87,21
*HQHUDO (DFK36$KDVDGHGLFDWHGIOLJKWFRQWUROGFEDWWHU\
)&'&%$77 ,WVXSSOLHVWKHIOLJKWFRQWUROFRPSRQHQWV
%HFDXVHWKHHOHFWULFDOSRZHUVXSSO\WRWKH3)&6LVYHU\ ZLWKSRZHUGXULQJ36$VZLWFKLQJ
FULWLFDODKLJKOHYHORIUHGXQGDQWSRZHULVDYDLODEOH
3RZHUWR/$&(
36$3RZHU6RXUFHV
7KH/$&(DQGLWVUHODWHG3&8VKDYHRQO\RQHSRZHU
'XULQJIOLJKWWKHOHIWSRZHUVXSSO\DVVHPEO\ 36$ VXSSO\,WLVIURPWKHOHIWYGFEXVLQWKH3OHIW
QRUPDOO\UHFHLYHVSULPDU\SRZHUIURPRQHSHUPDQHQW SRZHUPDQDJHPHQWSDQHO7KHOHIWYGFEXVDOVR
PDJQHWJHQHUDWRU 30* RQWKHOHIWHQJLQHEDFNXS VXSSOLHVSRZHUIRUWKHVWDELOL]HUFRPPDQGVWKH
JHQHUDWRU %8* 7KHULJKW36$UHFHLYHVSULPDU\SRZHU HOHYDWRUIHHODQGWKHDLOHURQUXGGHUWULPPRGXOH
IURPRQH30*RQWKHULJKWHQJLQHEDFNXSJHQHUDWRU
%8* 7KHFHQWHU36$UHFHLYHVSULPDU\SRZHUIURPWZR 7UDLQLQJ,QIRUPDWLRQ3RLQW
30*VRQHRQHDFKHQJLQH7KH36$VFKDQJHWKHDF
YDULDEOHHOHFWULFDOSRZHUIURPWKH30*VWRYGF 7KHUHDUHFLUFXLWEUHDNHUVRQWKHIURQWRIWKH36$VDQG
WKH3OHIWSRZHUPDQDJHPHQWSDQHO7KH\FRQWURO
,IWKHSULPDU\SRZHULVQRWDYDLODEOHRUQRWZLWKLQ SRZHUWRWKHFRPSRQHQWVRIWKH3)&6
VSHFLILHGOLPLWVWKHOHIWDQGULJKW36$VFKDQJHWR
VHFRQGDU\SRZHU7KHVHFRQGDU\SRZHULVIURPWKHOHIW ,IHOHFWULFDOSRZHULVVKXWGRZQZLWKDSULPDU\IOLJKW
DQGULJKWYGFEXVHV6HFRQGDU\SRZHUWRWKHFHQWHU FRPSXWHU 3)& GHDFWLYDWHGRUUHPRYHGWKH)&'&EDWWHU\
36$LVIURPWKHFDSWDLQVIOLJKWLQVWUXPHQWEXV GLVFKDUJHV7RSUHYHQWWKLVGLVFKDUJHRSHQWKH
DSSOLFDEOHFLUFXLWEUHDNHUVRQWKH36$:KHQHOHFWULFDO
:KHQWKHDLUSODQHLVRQWKHJURXQGDQGQRHQJLQHVDUH SRZHULVDYDLODEOHFORVHWKHFLUFXLWEUHDNHUV
UXQQLQJWKH36$VFKDQJHWRVHFRQGDU\SRZHU
,ISULPDU\DQGVHFRQGDU\SRZHULVQRWDYDLODEOHRUQRW
ZLWKLQVSHFLILHGOLPLWVWKH36$FKDQJHVWREDFNXS
SRZHU7KHOHIWDQGFHQWHU36$VUHFHLYHEDFNXSSRZHU
IURPWKHKRWEDWWHU\EXV7KHULJKW36$KDVQREDFNXS
SRZHU

30* 30* 30* 30*
/(1*%8* 5(1*%8*
/9'&%86 +27%$77(5<%86 &$37)/7,167%86 59'&%86
)&'& )&'& )&'&

%$77 %$77 %$77
/36$ &36$ 536$
/3)& /$&( /$&( &3)& &$&( 53)& 5$&(
&67&0 567&0
3&8 3&8 3&8 3&8

7<3,&$/ 7<3,&$/ 7<3,&$/ 7<3,&$/
3)&6(/(&75,&$/32:(5',675,%87,21

3)&6+<'5$8/,&32:(5$1'$&(',675,%87,21
+\GUDXOLF3RZHU'LVWULEXWLRQ $&('LVWULEXWLRQ
$OOWKUHHK\GUDXOLFV\VWHPVVXSSO\SRZHUWRRSHUDWHWKH 7KHGLVWULEXWLRQRIWKHIRXU$&(VDPRQJWKH3&8VLVLQ
3&8VRIWKHSULPDU\IOLJKWFRQWUROV7KHK\GUDXOLF DPDQQHUWKDWHDFK3&8IRUDVXUIDFHUHFHLYHVFRPPDQGV
GLVWULEXWLRQLV IURPDGLIIHUHQW$&(7KHGLVWULEXWLRQLV
7KHOHIWDLOHURQ/DQG& 7KHOHIWDLOHURQ/DQG&
6SRLOHU& 6SRLOHU&
6SRLOHU/ 6SRLOHU/
6SRLOHU5 6SRLOHU5
6SRLOHU/ 6SRLOHU/
6SRLOHU& 6SRLOHU/
7KHOHIWIODSHURQ/DQG5 7KHOHIWIODSHURQ/DQG5
6SRLOHU5 6SRLOHU5
6SRLOHU& 6SRLOHU&
6SRLOHU& 6SRLOHU&
6SRLOHU5 6SRLOHU5
7KHULJKWIODSHURQ5DQG& 7KHULJKWIODSHURQ/DQG&
6SRLOHU& 6SRLOHU/
6SRLOHU/ 6SRLOHU/
6SRLOHU5 6SRLOHU5
6SRLOHU/ 6SRLOHU/
6SRLOHU& 6SRLOHU&
7KHULJKWDLOHURQ&DQG/ 7KHULJKWDLOHURQ5DQG/
7KHOHIWHOHYDWRU/DQG& 7KHOHIWHOHYDWRU/DQG&
7KHULJKWHOHYDWRU5DQG/ 7KHULJKWHOHYDWRU5DQG/
7KHUXGGHU/&DQG5 7KHUXGGHU/&DQG5
7KHVWDELOL]HUDFWXDWRU&DQG5 7KHVWDELOL]HUDFWXDWRU/DQG&IRUWKHOHIW
PRWRUEUDNHDQG5DQG/IRUWKHULJKW
PRWRUEUDNH

5 & & 5
/ / 5 5 & & 5 / & /
/ /
5 & / 5 5 & & 5
/ / / /
& 5 5 &
/ /
& &
& 5
/ & & /
/ /
& &
/ /
5 5
/& 5/
$&(6285&( & 5
+<'5$8/,& & 5
32:(56285&(
/ & 5 /
/ /
3)&6+<'5$8/,&32:(5$1'$&(',675,%87,21

3)&623(5$7,21$/02'(6)81&7,21$/'(6&5,37,21
*HQHUDO $WOHDVWRQH3)&DQGWKUHH$&(VDUHLQQRUPDOPRGH
7KHVHDUHWKHWKUHHPRGHVRI3)&6RSHUDWLRQ $OOWKHFRQWUROODZVWKHSURWHFWLRQIXQFWLRQVDQGWKH
VWDELOLW\DXJPHQWDWLRQRIWKH3)&VDUHDFWLYHLQWKH
1RUPDO QRUPDOPRGH7KHDXWRSLORWRSHUDWHVRQO\LQQRUPDO
6HFRQGDU\ PRGH
'LUHFW
6HFRQGDU\0RGH
'XULQJWKH3)&6QRUPDODQGVHFRQGDU\PRGHRSHUDWLRQ
ERWKWKH3)&VDQGWKH$&(VDUHLQRSHUDWLRQ,QWKH 7KH3)&6VHOHFWVWKHVHFRQGDU\PRGHZKHQLWGHWHFWVWKH
VHFRQGDU\PRGHWKH3)& VRSHUDWLRQGRZQJUDGHV'XULQJ ORVVRILPSRUWDQWDLUDQGDWWLWXGHVHQVRUGDWDIURP
WKHGLUHFWPRGHRQO\WKH$&(VRSHUDWHLQUHVSRQVHWR ERWKWKH$',58DQGWKH6$$587KH3)&6DOVRVHOHFWVWKH
GLUHFWDQDORJLQSXWV VHFRQGDU\PRGHZKHQWZR$&(VDUHLQGLUHFWPRGH
7KH3)&6VHOHFWVWKHPRGHRIRSHUDWLRQ2QWKHJURXQG $VLPSOLILHGVHWRIFRQWUROODZVRSHUDWHWKH3)&6LQ
ZLWKJURXQGVSHHGOHVVWKDQNQRWVWKH3)&V VHFRQGDU\PRGH7KHSURWHFWLRQIXQFWLRQVDUHQRW
DXWRPDWLFDOO\VHOHFWWKHKLJKHVWPRGHDYDLODEOHEDVHG DYDLODEOH*DLQVFKHGXOHVDQGOLPLWVDUHDIXQFWLRQRI
RQWKHLQSXWVIURPWKH$',58DQG6$$58,QIOLJKWWKH IODSGDWDGLVFUHWHVIURPWKH$&(V3LWFKVWDELOLW\
SLORWVF\FOHWKH3)&GLVFRQQHFWVZLWFKRQWKH3SDQHO DXJPHQWDWLRQXVHVSLWFKUDWHGDWDIURPWKH$&(V<DZ
RUPRYHLWEDFNWRWKH$872SRVLWLRQWRFDXVHWKH GDPSHUDXJPHQWDWLRQXVHVLQHUWLDOGDWDIURPWKH$',58
VHOHFWLRQRIWKHKLJKHVWPRGHDYDLODEOH DQGWKH6$$58LIDYDLODEOH
'XULQJ3)&6PRGHFKDQJHVWKHUHLVDVPRRWKFKDQJHWR 'LUHFW0RGH
WKHQHZFRPPDQGV
7KH3)&6VHOHFWVWKHGLUHFWPRGHZKHQWKHUHDUH
1RUPDO0RGH IDLOXUHVWKDWPDNHWKHQRUPDODQGVHFRQGDU\PRGHV
XQUHOLDEOH,IWKUHH$&(VDUHLQGLUHFWPRGHWKH3)&6
7KH3)&6VHOHFWVWKHQRUPDOPRGHZKHQDOOWKHVH VZLWFKHVWKHODVW$&(WRWKHGLUHFWPRGH7KH3)&
FRQGLWLRQVDUHPHW GLVFRQQHFWVZLWFKDOVRFDXVHVWKHVHOHFWLRQRIWKH
GLUHFWPRGH
7KH3)&GLVFRQQHFWVZLWFKRQWKH3SDQHOLVLQ
WKH$872SRVLWLRQ 7KH3)&VGRQRWFRQWUROWKHVXUIDFHVLQWKHGLUHFW
7KHQHHGHGLQSXWGDWDLVDYDLODEOH PRGH3RVLWLRQWUDQVGXFHUVLJQDOVIURPWKHFRQWURO

3)&623(5$7,21$/02'(6)81&7,21$/'(6&5,37,21
ZKHHOVFROXPQVDQGSHGDOVJRGLUHFWO\WRWKH$&(V 7KH(,&$6FDXWLRQPHVVDJH35,)/,*+7&20387(56VKRZV
ZKLFKXVHWKHPWRFRQWUROWKH3&8V7KHSURWHFWLRQ ZKHQDOO$&(VXQGHUSRZHUDUHLQGLUHFWPRGHDQGWKH
IXQFWLRQVDUHQRWDYDLODEOH 3)&LVQRWLQWKHK\GUDXOLF2))VHOIWHVWPRGH
:KHQWKH3)&6LVLQGLUHFWPRGHZKHWKHUDXWRPDWLFDOO\ 2QWKHVWDWXVGLVSOD\WKHVWDWXVPHVVDJH)/,*+7
RUPDQXDOO\WKH',6&DPEHUOLJKWVKRZVQH[WWRWKH3)& &21752/6<6VKRZVZKHQWKH3)&6GRHVQRWRSHUDWHDW
GLVFRQQHFWVZLWFK PLQLPXPGLVSDWFKUHTXLUHPHQWOHYHOV6RPHRIWKHIDXOWV
WKDWFDXVHWKH)/,*+7&21752/6<6VWDWXVPHVVDJHDUH
0DQXDO6ZLWFKLQJ OLVWHGEHORZ2WKHU3)&6IDXOWVFDQDOVRFDXVHWKH
)/,*+7&21752/6<6VWDWXVPHVVDJH
7KH3)&6JRHVWRWKHGLUHFWPRGHRIRSHUDWLRQZKHQWKH
SLORWVPRYHWKH3)&GLVFRQQHFWVZLWFKWRWKH',6& )DLOXUHRIPRUHWKDQRQHFROXPQZKHHORU
SRVLWLRQ VSHHGEUDNHOHYHUSRVLWLRQWUDQVGXFHU
)DLOXUHRIDSHGDOWUDQVGXFHU
,IWKHSLORWVF\FOHWKH3)&GLVFRQQHFWVZLWFKRUPRYH )DLOXUHRIDUXGGHUHOHYDWRUDLOHURQIODSHURQ
LWDJDLQWRWKH$872SRVLWLRQWKH3)&6JRHVIURPWKH RUVSRLOHU3&8
GLUHFWPRGHWRWKHKLJKHVWPRGHDYDLODEOH7KH3)&6 )DLOXUHRID67&0
VHOHFWVWKHPRGHEDVHGRQWKHYDOLGLW\RIDYDLODEOH )DLOXUHRIDQHOHYDWRUIHHODFWXDWRU
GDWD )DLOXUHRID3)&DQGDWOHDVWRQHODQHLQDQRWKHU
3)&
,IWKH3)&6LVLQWKHVHFRQGDU\RUGLUHFWPRGHVDQGWKH )DLOXUHRIDQ$&(RUDWOHDVWRQH$&(LVLQGLUHFW
QRUPDOPRGHEHFRPHVDYDLODEOHWKH3)&6PD\VHOHFWWKH PRGH
QRUPDOPRGH7RGRWKLVLQWKHDLU\RXPXVWF\FOHWKH )DLOXUHRIWKHVWDELOL]HUFRQWURO
3)&GLVFRQQHFWVZLWFK,IWKHDLUSODQHLVRQWKHJURXQG )DLOXUHRIWKHDFWXDWRUFRQILGHQFHWHVW
DQGJURXQGVSHHGLVOHVVWKDQNQRWVWKHQWKH3)&6 )DLOXUHRID36$DIOLJKWFRQWUROV$5,1&EXV
VHOHFWVWKHQRUPDOPRGHDXWRPDWLFDOO\ RUD:(6FKDQQHO
,QGLFDWLRQV 7KH(,&$6FDXWLRQPHVVDJH)/,*+7&21752/6VKRZVZKHQ
WKHIOLJKWFRQWUROV\VWHPKDVORVWVXEVWDQWLDO
7KH(,&$6FDXWLRQPHVVDJH)/,*+7&21752/02'(VKRZV FDSDELOLWLHV$Q\RQHRIWKHVHIDXOWVFDXVHVWKH
ZKHQWKH3)&6LVLQVHFRQGDU\PRGH PHVVDJHWRVKRZ
7KHVWDELOL]HULVQRWRSHUDWLYH

3)&623(5$7,21$/02'(6)81&7,21$/'(6&5,37,21
7ZRHOHYDWRU3&8VDQGRQHVWDELOL]HUSDWKDUHQRW
RSHUDWLYH
7KHZKHHOFROXPQRUSHGDOSRVLWLRQWUDQVGXFHUV
IRUWKHFDSWDLQDQGILUVWRIILFHUGLVDJUHHE\PRUH
WKDQSHUFHQWRIIXOOUDQJHZLWKWKHDLUSODQHRQ
WKHJURXQG
7KHHOHYDWRUIRUFHILJKWHTXDOL]DWLRQIXQFWLRQLV
GHIHFWLYH

35,0$5<)/,*+7
&20387(56
',6&
',6&
$872
1250$/
3)&',6&211(&7
6:,7&+ 3
$8720$7,&250$18$/6:,7&+,1*
727+(+,*+(6702'($9$,/$%/(
$8720$7,&
250$18$/
6:,7&+,1*
3)&
$&(
6(&21'$5<
$8720$7,&
6(/(&7,21
$8720$7,&
250$18$/ ',5(&7
6:,7&+,1*
3)&
$8720$7,& $&(
250$18$/
6:,7&+,1*
$&(
3)&623(5$7,21$/02'(6)81&7,21$/'(6&5,37,21

3)&6)81&7,21$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

3)&6)81&7,21$/'(6&5,37,21
*HQHUDO 7KHDLOHURQORFNRXWGXULQJFUXLVH
7KHDLOHURQDQGIODSHURQGURRSZKHQWKHIODSV
7KHSULPDU\IOLJKWFRQWUROV\VWHPVXSSOLHVUROOSLWFK H[WHQG
DQG\DZFRQWUROWRVHWWKHGHVLUHGDLUSODQHDWWLWXGH
6SHHGEUDNH&RQWURO
$WWKHHQGRIHDFKIOLJKWWKH3)&VGRLQWHUQDOWHVWV
DQGVHOHFWWKHIXQFWLRQRIHDFKODQH :KHQWKHSLORWVPRYHWKHVSHHGEUDNHOHYHUIRXU
SRVLWLRQWUDQVGXFHUVVHQGDQDORJVLJQDOVWRWKH3)&V
$WWKHFRPSOHWLRQRISRZHUXSDQGZLWKWKHK\GUDXOLF WKURXJKWKH$&(V7KH3)&VWKHQFDOFXODWHWKHFRPPDQG
V\VWHPVSUHVVXUL]HGWKH3)&VFRPPDQGWKHVXUIDFHVWR RXWSXWVLJQDOV$IWHUVHOHFWLRQRIRQHVLJQDOWKH3)&V
VORZO\PRYHWRDJUHHZLWKWKHFRPPDQGIURPWKHFRQWURO VHQGWKHVHOHFWHGVLJQDOWRWKH$&(V7KH$&(VWKHQ
ZKHHOVFRQWUROFROXPQVDQGUXGGHUSHGDOV FRPPDQGWKHVSRLOHU3&8V3&8SRVLWLRQWUDQVGXFHUVVHQG
IHHGEDFNVLJQDOVWRWKH$&(V
2QWKHJURXQGZLWKRXWWKHHQJLQHVUXQQLQJWKHV\VWHP
UHFHLYHVHOHFWULFDOSRZHUIURPDVHFRQGDU\VRXUFH:KHQ 3LWFK&RQWURO
WKHHQJLQHVVWDUWWKHV\VWHPDXWRPDWLFDOO\VZLWFKHVWR
WKH30*VDVLWVSULPDU\SRZHUVRXUFH 7KHSLWFKFRQWUROFDXVHVWKHHOHYDWRUVDQGWKH
KRUL]RQWDOVWDELOL]HUWRPRYH:KHQWKHSLORWVPRYHD
5ROO&RQWURO FRQWUROFROXPQVL[SRVLWLRQWUDQVGXFHUVVHQGDQDORJ
VLJQDOVWRWKH3)&VWKURXJKWKH$&(V7KH3)&VSURFHVV
7KHUROOFRQWUROFDXVHVWKHDLOHURQVIODSHURQVDQG WKHVHVLJQDOVDQGFRPPDQGWKHHOHYDWRU3&8VLQWKHVDPH
VSRLOHUVWRPRYH:KHQWKHSLORWVPRYHDFRQWUROZKHHO PDQQHUDVWKHUROOFRQWURO
VL[SRVLWLRQWUDQVGXFHUVVHQGDQDORJVLJQDOVWRWKH
3)&VWKURXJKWKH$&(V7KH3)&VVHOHFWWKHVLJQDOWR :KHQWKHUHLVDFRPPDQGWRWKHHOHYDWRUWKDWODVWV
SURFHVV7KHFRQWUROODZVSURWHFWLRQIXQFWLRQVDQG ORQJHUWKDQDFDOFXODWHGWLPHWKHHOHYDWRURIIORDG
VWDELOLW\DXJPHQWDWLRQRIWKH3)&VFDOFXODWHWKH IXQFWLRQRIWKH3)&VVHQGVWDELOL]HUFRPPDQGVLJQDOVWR
FRPPDQGRXWSXWVLJQDOV$IWHUVHOHFWLRQRIRQHVLJQDO WKH$&(V7KH$&(VWKHQFRPPDQGWKHVWDELOL]HUWULP
DPRQJWKHWKUHHVXSSOLHGE\WKH3)&VWKH3)&VVHQGWKH FRQWUROPRGXOHV 67&0V ZKLFKK\GUDXOLFDOO\FRQWUROWKH
FRPPDQGRXWSXWVLJQDOWRWKH$&(V7KH$&(VWKHQ VWDELOL]HUEDOOVFUHZDFWXDWRU7KHPRYHPHQWRIWKH
FRPPDQGWKHFRQWUROVXUIDFH3&8V3&8SRVLWLRQ VWDELOL]HUWKHQFDXVHVWKHHOHYDWRUWRIDLU
WUDQVGXFHUVVHQGIHHGEDFNVLJQDOVWRWKH$&(V
7KH3)&VDOVRFRQWURO

3)&6)81&7,21$/'(6&5,37,21
<DZ&RQWURO
7KH\DZFRQWUROFDXVHVWKHUXGGHUWRPRYH:KHQWKH
SLORWVPRYHWKHFRQWUROSHGDOVIRXUSRVLWLRQ
WUDQVGXFHUVVHQGDQDORJVLJQDOVWRWKH3)&VWKURXJKWKH
$&(V7KH3)&VSURFHVVWKHVHVLJQDOVDQGFRPPDQGWKH
UXGGHU3&8VLQWKHVDPHPDQQHUDVWKHUROOFRQWURO7KH
3)&VDOVRFRQWUROFKDQJHVLQWKHUXGGHUUDWLRJXVW
VXSSUHVVLRQDQGZKHHOUXGGHUFURVVWLHIXQFWLRQV
7KH3)&VFRQWUROWKHUXGGHUWULPZKHQWKHSLORWVPRYH
WKHUXGGHUWULPVHOHFWRURUWKHPDQXDOWULPFDQFHO
VZLWFK7KHWKUXVWDV\PPHWU\FRPSHQVDWLRQ 7$&
IXQFWLRQDXWRPDWLFDOO\FRQWUROVWKHUXGGHUWULPWR
FRUUHFWIRUDV\PPHWULFDOWKUXVWRIWKHHQJLQHV

63(('%5$.(
/(9(5
$1$/2*
$1$/2*
3&8 &21752/
7<3,&$/ 685)$&(6
$1$/2*
67&0
%$//6&5(:
326,7,21 $&78$725
$&(
75$16'8&(56
+25,=217$/
67$%,/,=(5
3)&
)/,*+7&21752/6
$5,1&
%86
$,06
&$%,1(76 $',58 6$$58
0(&+$1,&$/
&211(&7,21
3)&6)81&7,21$/'(6&5,37,21

3)&6$8723,/27*(1(5$/'(6&5,37,21
*HQHUDO $XWRSLORW(QJDJHPHQW
:LWKWKHDXWRSLORWHQJDJHGWKH3)&6UHFHLYHVFRPPDQG 7KHUHDUHWZRDXWRSLORWHQJDJHVZLWFKHVRQWKH0&3
LQSXWVIURPWKH$)'&V7KH3)&6SURFHVVHVWKHVH :KHQWKHSLORWSXVKHVHLWKHUPRPHQWDU\DFWLRQVZLWFK
FRPPDQGVLQWKHVDPHPDQQHUDVPDQXDOLQSXWVIURPWKH WKH3)&VUHFHLYHDUHTXHVWWRHQJDJHWKHDXWRSLORW
SLORWV IXQFWLRQ,IFRQGLWLRQVDUHFRUUHFWWKH3)&VSHUPLW
DOOWKHDYDLODEOH$)'&VWRHQJDJHLQWKHSLWFKDQGUROO
7KHDXWRSLORWIXQFWLRQRIDXWRSLORWIOLJKWGLUHFWRU D[HVGXULQJFUXLVH
V\VWHP $)'6 VXSSOLHVDXWRPDWLFFRQWURORIWKH
7KHDXWRSLORW\DZD[LVHQJDJHVRQO\GXULQJWKHDSSURDFK
$OWLWXGH DQGDXWRODQGSKDVHRIIOLJKW,Q\DZWKHDXWRSLORWFDQ
9HUWLFDOVSHHG FRQWURODGYHUVH\DZ HQJLQHRXW DQGFUDEDQJOH
)OLJKWSDWKDQJOH
+HDGLQJ
7UDFN
$LUVSHHG
$SSURDFK
*RDURXQG
7KH$)'6GRHVQRWKDYHVHUYRVWRPRYHWKHSULPDU\
IOLJKWFRQWUROVXUIDFHV7KHDXWRSLORWFRPPDQGVJRWR
WKH3)&V7KH3)&VXVHWKHVHFRPPDQGVWRVXSSO\VXUIDFH
FRPPDQGVWRWKH$&(V7KH3)&VDOVRVXSSO\EDFNGULYH
FRPPDQGVWRWKH$)'&V
$XWRSLORW&RPSRQHQWV
7KHFRPSRQHQWVRI$)'6DUH
2QHPRGHFRQWUROSDQHO 0&3
7KUHHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V
6L[EDFNGULYHDFWXDWRUV
7ZRFRQWUROZKHHOGLVHQJDJHVZLWFKHV

$1$/2*
$1$/2* 3&8
7<3 &21752/
685)$&(6
$1$/2*
67&0 %$//6&5(:
$&78$725
$&(
326,7,21
75$16'8&(56
+25,=217$/
67$%,/,=(5
%$&.'5,9(
$&78$7256
3)&
)/,*+7&21752/6
0(&+$1,&$/ $5,1&
&211(&7,21 %86
$1$/2* $,06
&$%,1(76 $',58 6$$58
',6(1*$*(
6:,7&+(6 $)'&
+'*
75.
96
)3$
$8723,/27
(1*$*(
6:,7&+
$8723,/27
(1*$*(
6:,7&+ 02'(&21752/3$1(/ 3
3)&6$8723,/27*(1(5$/'(6&5,37,21

3)&6$8723,/27)81&7,21$/'(6&5,37,21
*HQHUDO %DFNGULYH2SHUDWLRQ
7KHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V 7KH3)&VVHQGFROXPQZKHHODQGUXGGHUSHGDOEDFNGULYH

FDOFXODWHUROOSLWFKDQG\DZFRPPDQGVWRFRQWUROWKH FRPPDQGVWRWKH$)'&VWRRSHUDWHWKHEDFNGULYH
DLUSODQHDXWRPDWLFDOO\%DVHGRQSLORWVHOHFWLRQWKH DFWXDWRUV,QFUXLVHRQHZKHHODQGRQHFROXPQ
$)'&VDOVRFDOFXODWHSLWFKUROOHQJDJHUHTXHVW\DZ EDFNGULYHDFWXDWRURSHUDWH$FWXDWRUVHOHFWLRQ
HQJDJHUHTXHVWDQGRWKHUGLVFUHWHVLJQDOV DOWHUQDWHVDWHDFKDXWRSLORWHQJDJHPHQW,QDXWRODQG
DOOEDFNGULYHDFWXDWRUVRSHUDWH:KHQFRPPDQGHGWKH
1RUPDO2SHUDWLRQ DFWXDWRUVPRYHWKHFRQWUROFROXPQVFRQWUROZKHHOVDQG
UXGGHUSHGDOVWRDSRVLWLRQWKDWUHSUHVHQWVWKH$)'&
7KHDXWRSLORWFRPPDQGVDQGGLVFUHWHHQJDJHVLJQDOVJR FRPPDQGV7KHVHPRYHPHQWVVXSSO\WDFWLOHDQGYLVXDO
IURPWKH$)'&VWRWKH3)&VWKURXJKWKHIOLJKWFRQWUROV IHHGEDFNWRWKHSLORWV
$5,1&EXVHV(DFK3)&UHFHLYHVWKHVHLQSXWVIURP
WKHWKUHH$)'&V7KH3)&VHOHFWVDFRPPDQGVLJQDOE\ 3RVLWLRQWUDQVGXFHUVRQWKHFROXPQVFRQWUROZKHHOVDQG
PLGYDOXHVHOHFWLRQ7KLVSURFHVVVHOHFWVWKHPLGGOH UXGGHUSHGDOVVXSSO\SRVLWLRQIHHGEDFNWRWKH3)&VDQG
YDOXHRIWKHWKUHHQRWWKHDYHUDJHYDOXH $)'&VWKURXJKWKH$&(V7KH$)'&VXVHWKHVLJQDOWR
PDNHVXUHWKDWWKHEDFNGULYHDFWXDWRUVRSHUDWH
7KH3)&VHOHFWVWKHGLVFUHWHVLJQDOVE\PDMRULW\ FRUUHFWO\
VHOHFWLRQ
1RQQRUPDO2SHUDWLRQ
7KH3)&VILOWHUDQGOLPLWWKHDXWRSLORWFRPPDQGVLJQDOV
EHIRUHWKHLUXVHLQWKHFRQWUROODZV7KH3)&VSURFHVV )RUERWKFRPPDQGDQGGLVFUHWHVLJQDOVLIDQLQSXWLV
DQGFKDQJHWKHDXWRSLORWFRPPDQGVLJQDOVWRVXUIDFH QRWYDOLGRUIDLOHGWKH3)&UHPRYHVLWIURPWKH
FRPPDQGVDQGEDFNGULYHFRPPDQGV7KHVXUIDFHFRPPDQGV FDOFXODWLRQ,IDVHFRQGLQSXWLVQRWYDOLGWKH3)&
IURPWKH3)&VJRWRWKH$&(VWRPRYHWKHIOLJKWFRQWURO XVHVWKHUHPDLQLQJLQSXW7KLVSHUPLWVWKHV\VWHPWR
VXUIDFHV RSHUDWHZLWKDVLQJOH$)'&
$XWRSLORWFRPPDQGVJRWRWKHUXGGHURQO\GXULQJ :KHQWKH3)&GHWHFWVDSLORWRYHUULGHLQDQ\D[LVLW
DXWRPDWLFDSSURDFKDQGODQGLQJV GLVHQJDJHVDOOHQJDJHG$)'&V
,QPDQXDOFRQWURO QRDXWRSLORWHQJDJHG WKH3)&V

VXSSO\EDQNDQJOHSURWHFWLRQWKURXJKXVHRIWKH$)'6
ZKHHOEDFNGULYHDFWXDWRUV

)/,*+7 )/,*+7
&21752/6 &21752/6
$5,1& $5,1&
%86(6 $8723,/27 %86(6
$8723,/27&200$1'6 (1*$*( 685)$&(
/2*,& &200$1'
$8723,/27 &$/&8
,1387 /$7,21
6(/(&7,21 3,/27
)$,/85( $8723,/27 29(5 '$
$8723,/27(1*$*( '(7(&7,21 &200$1'
5(48(676 5,'(
/2*,& /,0,7 /2*,&
27+(5',6&5(7(6 ),/7(5
%$&.'5,9( &21752/
&200$1'6 685)$&(6
$8723,/27,1387)$8/76 3&8
3,/2729(55,'(6
%$&.'5,9(&200$1'6
685)$&(
326,7,21
)(('%$&.
75$16'8&(56
(1*$*($8723,/27
(1*$*(:+((/
%$&.'5,9(
&2/801326,7,21
:+((/326,7,21 $'
3('$/326,7,21
$)'& 3)& $&(
%$&.'5,9( %$&.'5,9( 326,7,21

$&78$725&200$1'6 $&78$7256 75$16'8&(56
0(&+$1,&$/&211(&7,21
3)&6$8723,/27)81&7,21$/'(6&5,37,21

$,/(521$1')/$3(521&21752/*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

$,/(521$1')/$3(521&21752/*(1(5$/'(6&5,37,21
*HQHUDO $XWRSLORW2SHUDWLRQ
7KHSLORWVPDQXDOO\JLYHFRPPDQGVWRWKHDLOHURQVDQG :KHQWKHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V

IODSHURQV7KHDXWRSLORWDXWRPDWLFDOO\JLYHVFRPPDQGV HQJDJHWKH\FRQWUROWKHUROOUDWHDQGDWWLWXGHRIWKH
WRWKHP DLUSODQH7KH$)'&VVXSSO\UROOFRPPDQGVWRWKH3)&V
WKURXJKWKHIOLJKWFRQWUROV$5,1&EXVHV7KH3)&V
0DQXDO2SHUDWLRQ&RQWURO:KHHOV XVHWKHVHLQSXWVWRFDOFXODWHSRVLWLRQFRPPDQGVIRUWKH
DLOHURQVDQGIODSHURQVDOPRVWWKHVDPHDVIRUWKH
7KHIOLJKWFUHZXVHVWZRFRQYHQWLRQDOFRQWUROZKHHOVWR PDQXDORSHUDWLRQ
FRQWUROUROO$ZKHHOMDPEUHDNRXWPHFKDQLVPVXSSOLHVD
PHFKDQLFDOOLQNEHWZHHQWKHFRQWUROZKHHOV,ID 7KH3)&VDOVRFDOFXODWHZKHHOEDFNGULYHFRPPDQGV7KH
FRQWUROZKHHOKDVDMDPWKHRWKHUFRQWUROZKHHO 3)&VVHQGWKHVHFRPPDQGVWRWKH$)'&VZKLFKFDOFXODWH
FRQWLQXHVWRFRQWURO FRQWUROZKHHOPRYHPHQWFRPPDQGVIRUWKHEDFNGULYH
DFWXDWRU7KHEDFNGULYHDFWXDWRUPRYHVWKHZKHHOVWKH
6L[SRVLWLRQWUDQVGXFHUVFKDQJHWKHIOLJKWFUHZ VDPHDVWKHSLORWPRYHVWKHPPDQXDOO\IRUWKHVDPH
FRPPDQGVRIWKHFRQWUROZKHHOWRDQDORJHOHFWULFDO VXUIDFHPRYHPHQW7KHIOLJKWFUHZFDQFDXVHDQRYHUULGH
VLJQDOV7KHVHVLJQDOVJRWRWKHIRXUDFWXDWRUFRQWURO RIWKHDXWRSLORW7RGRWKLVWKH\XVHHQRXJKIRUFHRQ
HOHFWURQLFV $&(V 7KH$&(VFKDQJHWKHVLJQDOVWR WKHZKHHOWRSXVKDJDLQVWWKHEDFNGULYHDFWXDWRU
GLJLWDOIRUPDWDQGVHQGWKHPWRWKHWKUHHSULPDU\
IOLJKWFRPSXWHUV 3)&V 7KH\VHQGWKHPWKURXJKWKH %DQN$QJOH3URWHFWLRQ
IOLJKWFRQWUROV$5,1&EXVHV
$EDQNDQJOHSURWHFWLRQ %$3 IXQFWLRQLQWKH3)&V
7KH3)&VXVHWKHFRQWUROZKHHOSRVLWLRQGDWDZLWKGDWD VXSSOLHVSURWHFWLRQZKHQWKHEDQNDQJOHLVPRUHWKDQ
IURPWKH$',58DQG$,06WRFDOFXODWHFRQWUROVXUIDFH GHJUHHV,WGRHVWKLVLQPDQXDODQGDXWRSLORW
FRPPDQGV7KH3)&VVHQGWKHGLJLWDOFRPPDQGVWRWKH RSHUDWLRQ7KH%$3IXQFWLRQXVHVWKHZKHHOEDFNGULYH
$&(VZKLFKFKDQJHWKHPWRDQDORJVLJQDOV7KH$&(V DFWXDWRUVWRPDNHDFRQWUROZKHHOLQSXWIRUWKH
VHQGWKHDQDORJSRVLWLRQFRPPDQGVWRWKHSRZHUFRQWURO FRUUHFWLYHDFWLRQ7KHFUHZFDQRYHUULGHWKHEDFNGULYH
XQLWV 3&8V ZKLFKPRYHWKHFRQWUROVXUIDFHV7KH LQSXWE\KROGLQJDIRUFHRQWKHZKHHO7KHWZRIRUFH
SRVLWLRQWUDQVGXFHUVRQWKHDFWXDWRUSLVWRQVVXSSO\ WUDQVGXFHUVLQWKHVLQJOHDVVHPEO\VHQVHVWKHFUHZ
SRVLWLRQIHHGEDFNWRWKH$&(V IRUFH7KH3)&VWKHQUHGXFHWKHEDFNGULYHIRUFHWRD
OHYHOWKDWWKHFUHZFDQKROGDJDLQVW

$,/(521$1')/$3(521&21752/*(1(5$/'(6&5,37,21
0DQXDO2SHUDWLRQ$LOHURQ7ULP
7KHDLOHURQWULPVZLWFKHVDQGWKHWULPDFWXDWRUOHWWKH
IOLJKWFUHZDGMXVWRXWXQZDQWHGFRQWUROZKHHOIRUFHV
:KHQWKHSLORWVPRYHWKHDLOHURQWULPVZLWFKHVRQWKH
DLVOHVWDQGWKHVZLWFKHVVHQGDVLJQDOWRWKHDLOHURQ
WULPDFWXDWRU7KHWULPDFWXDWRUPRYHVWKHFRQWURO
ZKHHOVDQGWKHSRVLWLRQWUDQVGXFHUVWKURXJKWKHIHHO
DQGFHQWHULQJPHFKDQLVP7KLVFKDQJHVWKHQHXWUDO
SRVLWLRQRIWKHFRQWUROZKHHOV7KHWUDQVGXFHUVVHQGD
VLJQDOWRWKH$&(VDQG3)&VWRPRYHWKHDLOHURQVDQG
IODSHURQV
:KHQWKHDXWRSLORWLVHQJDJHGRUWKHEDQNDQJOH
SURWHFWLRQ %$3 LVDFWLYHWKHDLOHURQWULPGRHVQRW
RSHUDWH
)OLJKW&RQWURO)RUFH7UDQVGXFHUV
7KHUHLVDVLQJOHIRUFHWUDQVGXFHURQWKHUROO
FRQWUROV,WPDNHVLQSXWVWRWKH)OLJKW'DWD5HFRUGHU
ZKHQWKHSLORWDSSOLHVDIRUFHWRWKHFRQWUROZKHHO

$,/(521
/()7 5,*+7
:,1*
'2:1
:,1*
'2:1 3&8 5)/$3(521
$,/(521
75,0
6:,7&+(6
3
:+((/-$0 3&8 /)/$3(521
%5($.287 $,/(52175,0
0(&+$1,60 $&78$725
)((/$1'
&(17(5,1*
0(&+$1,60
5$,/(521
:+((/
326,7,21
75$16'8&(5
:+((/
)25&(
75$16'8&(5
$&( /$,/(521
)/,*+7&21752/6
$5,1&%86
$,06&$%,1(7
3)&
%$&.'5,9( $)'&
0(&+$1,&$/ $&78$725 $',58
&211(&7,21 6$$58
$,/(521$1')/$3(521&21752/*(1(5$/'(6&5,37,21

$,/(521$1')/$3(521&21752/&20321(17/2&$7,216
*HQHUDO :KHHOSRVLWLRQWUDQVGXFHUV
:KHHOIRUFHWUDQVGXFHUV
7KHDLOHURQDQGIODSHURQFRQWUROFRPSRQHQWVDUHLQ :KHHOFDEOHGUXPV
WKUHHDUHDV )HHODQGFHQWHULQJPHFKDQLVP
:KHHOMDPEUHDNRXWPHFKDQLVP
:LQJV :KHHOEDFNGULYHDFWXDWRUV
)OLJKWFRPSDUWPHQW
%HORZWKHIOLJKWFRPSDUWPHQWIORRU $FFHVVWRWKHVHFRPSRQHQWVLVWKURXJKWKHPDLQ
HTXLSPHQWFHQWHU 0(& DQGWKHQIRUZDUGDORQJWKHQRVH
6HHWKHSULPDU\IOLJKWFRQWUROVVHFWLRQIRUPRUH JHDUZKHHOZHOO
LQIRUPDWLRQDERXWWKHORFDWLRQRI3)&6HOHFWURQLF
FRPSRQHQWV $7$
:LQJ&RPSRQHQWV
7KHDLOHURQDQGIODSHURQFRQWUROVXUIDFHVDQGWKHLU
3&8VDUHRQWKHZLQJV7ZR3&8VGLUHFWO\FRQQHFWWR
HDFKVXUIDFH$FFHVVWRWKHDLOHURQ3&8VLVE\KLQJHG
DFFHVVSDQHOVRQWKHORZHUZLQJ$FFHVVWRWKHIODSHURQ
3&8VLVE\UHPRYDEOHORZHUVNLQSDQHOV
)OLJKW'HFN&RPSRQHQWV
7KHFRQWUROZKHHOVDQGDLOHURQWULPVZLWFKHVDUHLQWKH
IOLJKWFRPSDUWPHQW7KHDLOHURQWULPVZLWFKHVDUHRQ
WKH3DIWDLVOHVWDQGSDQHO
&RPSRQHQWV%HORZWKH)OLJKW&RPSDUWPHQW
7KHRWKHUIRUZDUGFRPSRQHQWVDUHEHORZWKHIOLJKW
FRPSDUWPHQWIORRUDQGDERYHWKHQRVHJHDUZKHHOZHOO
7KHVHFRPSRQHQWVDUH

/()7
$,/(521
/()7
)/$3(521 /$,/(521
3&8
/)/$3(521
5,*+7 3&8
)/$3(521
&21752/ $,/(52175,0
:+((/6 6:,7&+(6
5$,/(521
3&8 5)/$3(521
5,*+7 3&8
$,/(521
:+((/
%$&.'5,9(
$&78$725
:+((/)25&(
75$16'8&(56
)((/$1' :+((/ :+((/-$0
&(17(5,1* 326,7,21 %5($.287
0(&+$1,60 75$16'8&(5 0(&+$1,60
$,/(521$1')/$3(521&21752/&20321(17/2&$7,216

$,/(521$1')/$3(521&21752/)81&7,21$/'(6&5,37,21
*HQHUDO $LOHURQ3&8V
7KHUROOFRQWUROV\VWHPIRUWKHDLOHURQVDQGIODSHURQV (DFK$&(VHQGVRXWSXWFRPPDQGVLJQDOVWRWKHWZR3&8V
XVHVLQSXWFRPPDQGVLJQDOVIURPWKHZKHHOSRVLWLRQ RIWKHVDPHDLOHURQ7ZRRXWSXWFRPPDQGVLJQDOVJRWR
WUDQVGXFHUVDQGWKHIRUFHWUDQVGXFHU WKH(+69DQGWKHE\SDVVVROHQRLGRIRQH3&8RQWKH
DVVLJQHGDLOHURQ$QRWKHURXWSXWFRPPDQGVLJQDOJRHVWR
7KH$&(VUHFHLYHWKHLQSXWVLJQDOVDQGWUDQVPLWWKHPWR WKHEORFNLQJVROHQRLGRIWKHDGMDFHQW3&8RQWKHVDPH
WKH3)&V QRWVKRZQ 7KH$&(VVXSSO\RXWSXWFRPPDQG DLOHURQ7KH3&8VHQGVIHHGEDFNVLJQDOVWRLWVDVVLJQHG
VLJQDOVWRWKH3&8VRIWKHDLOHURQVDQGWKHIODSHURQV $&(IURP
:KHHO3RVLWLRQ7UDQVGXFHUV 7KH(+69SRVLWLRQ/9'7
7KHDFWXDWRUSLVWRQSRVLWLRQ/9'7
7KH&$&(DQG5$&(HDFKUHFHLYHVLJQDOVIURPWZRZKHHO 7KHDFWXDWRUQXOO/9'7
SRVLWLRQWUDQVGXFHUV7KH/$&(DQG/$&(HDFK
UHFHLYHVLJQDOVIURPRQHZKHHOSRVLWLRQWUDQVGXFHU )ODSHURQ3&8V
$IWHUWKH\FKDQJHWKHVLJQDOVWRGLJLWDOIRUPDWWKH
$&(VVHQGWKHVHVLJQDOVWRWKH3)&V (DFK$&(VHQGVRXWSXWFRPPDQGVLJQDOVWRRQHIODSHURQ
3&87KHRXWSXWFRPPDQGVLJQDOVJRWRWKH(+69DQGWKH
(DFK3)&UHFHLYHVLQSXWVLJQDOVIURPDOOVL[ZKHHO E\SDVVVROHQRLG7KH3&8VHQGVIHHGEDFNVLJQDOVWRLWV
SRVLWLRQWUDQVGXFHUV7KHVHVLJQDOVFRPHIURPWKH$&(V DVVLJQHG$&(IURP
WKURXJKWKHIOLJKWFRQWUROV$5,1&EXVHV(DFK3)&
VHOHFWVZKLFKVLJQDOWRSURFHVVE\PLGYDOXHVHOHFWLRQ 7KH(+69SRVLWLRQ/9'7
DQGDYHUDJLQJ 7KHGLIIHUHQWLDOSUHVVXUH/9'7
7KHDFWXDWRUSLVWRQSRVLWLRQ/9'7
)RUFH7UDQVGXFHUV 7KHDFWXDWRUQXOO/9'7
7KHWZR/9'7VRIRQHRIWKHZKHHOIRUFHWUDQVGXFHUV
VHQGVVLJQDOVWRWKH/$&(DQGWKH&$&(7KHVLQJOH
/9'7RIWKHRWKHUZKHHOIRUFHWUDQVGXFHUVHQGVVLJQDOV
WRWKH/$&(7KH$&(VWUDQVPLWWKHVHVLJQDOVWRWKHLU
RQVLGH3)&V

:+((/ :+((/ :+((/

326,7,21 / / / )25&( 5 5 5 326,7,21
75$16'8&(5/()7 75$16'8&(56 75$16'8&(55,*+7
/$&( &$&( 5$&( /$&(
%<3$6662/1'
%/.*62/1' %/.*62/1' %/.*62/1' %/.*62/1'
(+69 ,17(51$/6 ,17(51$/6 ,17(51$/6
(+69/9'7 6$0($6 6$0($6 6$0($6
$&75326/9'7 /2%$,/(521 /2%$,/(521 /2%$,/(521
3&8 3&8 3&8
$&718///9'7
/2% /,% 5,% 52%
$,/(521 $,/(521
3&8 %<3$6662/1' 3&8
(+69
,17(51$/6 ,17(51$/6 ,17(51$/6
(+69/9'7 6$0($6 6$0($6 6$0($6
',))3/9'7 /2%)/$3(521 /2%)/$3(521 /2%)/$3(521
3&8 3&8 3&8
$&75326/9'7
$&718///9'7
)/$3(521 )/$3(521
3&8 /2% /,% 5,% 52% 3&8
$,/(521$1')/$3(521&21752/)81&7,21$/'(6&5,37,21

$,/(521$1')/$3(521&21752/)81&7,21$/'(6&5,37,21$&(6(592/223
*HQHUDO IHHGEDFNVLJQDOWRPRQLWRUIRUIDLOXUH7KHVLJQDODOVR
JRHVWRWKH3)&
7KH$&(FRQWDLQVDVHUYRORRSFLUFXLWWRSURGXFHWKH
FRPPDQGVLJQDOVIRUWKH3&8V 2QWKHIODSHURQ3&8VRQO\DGLIIHUHQWLDOSUHVVXUH/9'7
PHDVXUHVWKHGLIIHUHQWLDOSUHVVXUHDFURVVWKHDFWXDWRU
,QQRUPDODQGVHFRQGDU\PRGHWKH3)&VHQGVWKHFRPPDQG SLVWRQ7KHVLJQDOIURPWKHGLIIHUHQWLDOSUHVVXUH/9'7
VLJQDOVWRWKH$&(,QGLUHFWPRGHWKH$&(FDOFXODWHV JRHVWRWKH$&(VIRUWKHVHUYRORRS7KHVLJQDODOVR
WKHFRPPDQGVLJQDOV JRHVWRWKH3)&VIRUIRUFHILJKWHTXDOL]DWLRQ
6HUYR/RRS2SHUDWLRQ )DLOXUH0RQLWRU
7KH$&(VXVHWKHDLOHURQDQGIODSHURQFRPPDQGVLJQDOV 7KH$&(KDVDIDLOXUHPRQLWRUWRGRDFKHFNRIWKH
WKURXJKDVHUYRORRS7KHFRPPDQGVLJQDOVWKHQJRWR FRUUHFWRSHUDWLRQRIWKH3&87KHPRQLWRUXVHVWKH$&(
WKH(+69RIWKH3&8V7KH$&(VDOVRXVHWKHFRPPDQG FRPPDQGVLJQDODQGWKHIHHGEDFNVLJQDOVIURPWKH(+69
VLJQDOVWRPRQLWRUIRUIDLOXUHV /9'7DQGWKHDFWXDWRU/9'7:KHQWKHIDLOXUHPRQLWRU
ILQGVDIDXOWZLWKWKH3&8RUWKH$&(LWGHHQHUJL]HV
7KHPRYHPHQWRIWKH(+69VHQGVK\GUDXOLFSUHVVXUHWR WKHE\SDVVVROHQRLGRIWKH3&8
H[WHQGRUUHWUDFWWKHDFWXDWRU
7UDLQLQJ,QIRUPDWLRQ3RLQW
7KH(+69/9'7PHDVXUHVWKHPRYHPHQWRIWKH(+69DQG
VXSSOLHVDIHHGEDFNVLJQDOWRWKH$&(V7KH$&(VXVH $IWHULQVWDOODWLRQRIWKHDLOHURQRUWKHIODSHURQ3&8
WKLVIHHGEDFNVLJQDOLQWKHIDLOXUHPRQLWRU \RXGRD0$7WHVWDQGDGMXVWWKHDFWXDWRUQXOO/9'7WR
KDYHWKHFRQWUROVXUIDFHDWWKHULJSRVLWLRQ
7KHDFWXDWRUSRVLWLRQ/9'7PHDVXUHVWKHPRYHPHQWRIWKH
DFWXDWRUDQGVXSSOLHVDIHHGEDFNVLJQDOWRWKH$&(V
WKURXJKWKHDFWXDWRUQXOO/9'7
7KHDFWXDWRUQXOO/9'7LVLQVHULHVZLWKWKHDFWXDWRU
SRVLWLRQ/9'77KHDFWXDWRUQXOO/9'7PRGLILHVWKH
VLJQDOIURPWKHDFWXDWRUSRVLWLRQ/9'7
7KHDFWXDWRUSRVLWLRQ/9'7VXSSOLHVDIHHGEDFNVLJQDO
WRWKH$&(VWRFORVHWKHVHUYRORRS7KH$&(VXVHWKLV

)/$3(521',))(5(17,$/
35(6685(6,*1$/ ',))
6(&21'$5< 35(66
02'( ',5(&7 /9'7
02'(
1250$/
02'(
(+69 $&78$725
$,/(521$1'
)$,/85( (+69 )/$3(521
',5(&7 021,725 /9'7 &21752/
02'( 685)$&(6
6(&21'$5<
02'( 7262/(12,'6 $&75 $&75
18// 326
&21752//$:6 $&78$725326,7,21)(('%$&. /9'7 /9'7
3)& $&( $,/(5213&8
)/$3(5213&8
0(&+$1,&$/&211(&7,21
$,/(521$1')/$3(521&21752/)81&7,21$/'(6&5,37,21$&(6(592/223

632,/(5$1'63(('%5$.(&21752/*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

632,/(5$1'63(('%5$.(&21752/*(1(5$/'(6&5,37,21
*HQHUDO 0HFKDQLFDO&RQWURO3DWK
,QUROOFRQWUROWKHSLORWVPDQXDOO\FRQWUROWKH $FDEOHV\VWHPFRQQHFWVWKHFRQWUROZKHHOVWRWKH
VSRLOHUV7KHDXWRSLORWDXWRPDWLFDOO\FRQWUROVWKHP VSRLOHUDQG3&8V&DEOHPRYHPHQWVXSSOLHVD
ZKHQLWLVHQJDJHG,QVSHHGEUDNHFRQWUROWKHSLORWV PHFKDQLFDOLQSXWWRWKH3&8VWKDWPRYHWKHVSRLOHUV
PDQXDOO\FRQWUROWKHVSRLOHUV 7KHPRYHPHQWRIWKH3&8KRXVLQJVXSSOLHVPHFKDQLFDO
SRVLWLRQIHHGEDFN
5ROO&RQWURO0DQXDO2SHUDWLRQ
5ROO&RQWURO$XWRSLORW2SHUDWLRQ
7KHIOLJKWFUHZXVHVWZRFRQYHQWLRQDOFRQWUROZKHHOVWR
FRQWUROUROO$OOVSRLOHUVKDYHDQHOHFWULFDOFRPPDQG :KHQWKHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V
SDWK7KLVGRHVQRWLQFOXGHVSRLOHUVDQG7KHVH HQJDJHWKH\FRQWUROWKHUROOUDWHDQGDWWLWXGHRIWKH
VSRLOHUVKDYHDPHFKDQLFDOFRPPDQGSDWKLQUROO DLUSODQH7KH\VXSSO\UROOFRPPDQGVWRWKH3)&VWKURXJK
FRQWURO WKHIOLJKWFRQWUROV$5,1&EXVHV7KH3)&VXVHWKHVH
LQSXWVWRFDOFXODWHSRVLWLRQFRPPDQGVIRUWKHVSRLOHUV
(OHFWULFDO&RPPDQG3DWK
7KH3)&VDOVRFDOFXODWHZKHHOEDFNGULYHFRPPDQGV7KH
6L[ZKHHOSRVLWLRQWUDQVGXFHUVFKDQJHWKHIOLJKWFUHZ 3)&VVHQGWKHVHFRPPDQGVWRWKH$)'&VZKLFKFDOFXODWH
FRQWUROZKHHOFRPPDQGVWRDQDORJHOHFWULFDOVLJQDOV FRQWUROZKHHOPRYHPHQWFRPPDQGVIRUWKHEDFNGULYH
7KHVHVLJQDOVJRWRWKHIRXUDFWXDWRUFRQWURO DFWXDWRU7KHEDFNGULYHDFWXDWRUPRYHVWKHFRQWURO
HOHFWURQLFV $&(V 7KH$&(VFKDQJHWKHVLJQDOVWR ZKHHOVWKHVDPHDVWKHSLORWPRYHVWKHPPDQXDOO\IRU
GLJLWDOIRUPDWDQGVHQGWKHPWRWKHWKUHHSULPDU\ WKHVDPHVXUIDFHPRYHPHQW7KLVVXSSOLHVWKHPHFKDQLFDO
IOLJKWFRPSXWHUV 3)&V WKURXJKWKHIOLJKWFRQWUROV VLJQDOWRPRYHVSRLOHUVDQG
$5,1&EXVHV
7RGRDQRYHUULGHRIWKHDXWRSLORWWKHIOLJKWFUHZ
7KH3)&VXVHWKHFRQWUROZKHHOSRVLWLRQGDWDZLWKGDWD DSSOLHVPRUHIRUFHRQWKHFRQWUROZKHHOWKDQWKH
IURPWKH$',586$$58DQG$,06WRFDOFXODWHFRQWURO EDFNGULYHDFWXDWRUIRUFH
VXUIDFHFRPPDQGV7KH3)&VVHQGWKHGLJLWDOFRPPDQGVWR
WKH$&(VZKLFKFKDQJHWKHPWRDQDORJVLJQDOV7KH$&(V 6SHHGEUDNH&RQWURO
VHQGWKHDQDORJSRVLWLRQFRPPDQGVWRWKHSRZHUFRQWURO
XQLWV 3&8V ZKLFKPRYHWKHVSRLOHUV7KHSRVLWLRQ 7KHVSHHGEUDNHOHYHUWUDQVGXFHUVFKDQJHWKHVSHHGEUDNH
WUDQVGXFHUVRQWKHDFWXDWRUSLVWRQVVXSSO\SRVLWLRQ OHYHUPRYHPHQWVWRDQDORJHOHFWULFDOVLJQDOV
IHHGEDFNWRWKH$&(V

632,/(5$1'63(('%5$.(&21752/*(1(5$/'(6&5,37,21
7KHVHVLJQDOVJRWRWKHIRXU$&(V7KH$&(VFKDQJHWKH
VLJQDOVWRGLJLWDOIRUPDWDQGVHQGWKHPWRWKHWKUHH
3)&VWKURXJKWKHIOLJKWFRQWUROV$5,1&EXVHV
7KH3)&VXVHWKHVSHHGEUDNHOHYHUSRVLWLRQZLWKGDWD
IURPWKH$',58DQG$,06WRFDOFXODWHVSHHGEUDNH
FRPPDQGV7KH3)&VPL[WKHVHVSHHGEUDNHFRPPDQGVZLWK
WKHVSRLOHUUROOFRPPDQGV7KH3)&VVHQGWKHPL[HG
GLJLWDOFRPPDQGVWRWKH$&(VZKLFKFKDQJHWKHPWR
DQDORJVLJQDOV7KH$&(VVHQGWKHDQDORJSRVLWLRQ
FRPPDQGVWRWKHVSRLOHU3&8V7KLVGRHVQRWLQFOXGH
VSRLOHUVDQG7KHSRVLWLRQWUDQVGXFHUVRQWKH
DFWXDWRUSLVWRQVVXSSO\SRVLWLRQIHHGEDFNWRWKH$&(V
)RUVSRLOHUVDQGVSHHGEUDNHFRQWUROLVRQO\
DYDLODEOHLQQRUPDOPRGH:KHQWKHSLORWPRYHVWKH
VSHHGEUDNHOHYHUPRUHWKDQGHJUHHVWKH3)&JLYHV
FRPPDQGVWRWKH$&(WRVHQGDQ212))HOHFWULFDOVLJQDO
WRWKHWZRVSRLOHU3&8V

0(&+$1,&$/
52//&21752/
$1'
632,/(5
(/(&75,&$/ 3&8 $1'
63(('%5$.( 632,/(56
&21752/
1250$/02'(21/<
63(('%5$.(/(9(5
287%2$5'
632,/(5
63(('%5$.(/(9(5 3&8 287%2$5'
75$16'8&(5 632,/(56
127$1'
:+((/)25&(
75$16'8&(56 ,1%2$5'
632,/(5
:+((/326,7,21 3&8 ,1%2$5'
75$16'8&(5 632,/(56
$&(
)/,*+7&21752/6
$5,1&%86
$,06&$%,1(7
%$&.'5,9( 3)&
$&78$725
$)'&
0(&+$1,&$/ $',58
&211(&7,21 6$$58
632,/(5$1'63(('%5$.(&21752/*(1(5$/'(6&5,37,21

$87263(('%5$.(&21752/*(1(5$/'(6&5,37,21
*HQHUDO :KHQWKHSLORWUHMHFWVDWDNHRII 572 DQGXVHVWKH
UHYHUVHWKUXVWOHYHUVWKH572PHFKDQLVPOLIWVWKH
7KHDXWRVSHHGEUDNHFRQWUROGHSOR\VDOOVSRLOHUVIRU VSHHGEUDNHOHYHURXWRIWKH'2:1GHWHQWDQGFORVHVWKH
WKHVHFRQGLWLRQV DXWRVSHHGEUDNHVZLWFK7KH3)&VXVHWKHVZLWFK
SRVLWLRQDQGDLUJURXQGLQIRUPDWLRQWRJHQHUDWHDQ
2QODQGLQJLIWKHVSHHGEUDNHOHYHULVVHWWRDUPHG DXWRVSHHGEUDNHFRPPDQG,IWKHDXWRVSHHGEUDNHWKUXVW
)RUDUHMHFWHGWDNHRIIZKHQWKHWKUXVWUHYHUVDUH UHYHUVHUVZLWFKIDLOVWKH3)&VJHQHUDWHDDXWR
GHSOR\HG VSHHGEUDNHFRPPDQGZKHQWKHWKUXVWUHYHUVHUVGHSOR\
$XWR6SHHGEUDNH&RQWURO 7KH3)&VVHQGWKHFRPPDQGVLJQDOWRWKH$&(67KH$&(V
VHWWZRUHOD\VWRSURYLGHSRZHUWRWKHDXWRVSHHGEUDNH
7KH3)&VFRQWUROWKHDXWRVSHHGEUDNHIXQFWLRQ7KH3)& DFWXDWRU7KHDFWXDWRUPRYHVWKHDXWRVSHHGEUDNH
ORJLFXVHVLQIRUPDWLRQIURP FOXWFK7KHFOXWFKPRYHVWKHVSHHGEUDNHOHYHU
WUDQVGXFHUVDQGWKHVSHHGEUDNHOHYHU
5DGLRDOWLPHWHUV
$XWRVSHHGEUDNHWKUXVWUHYHUVHVZLWFK 7KHVSHHGEUDNHOHYHUWUDQVGXFHUVJRWRWKH$&(VDQG
7UXFNWLOWSUR[LPLW\VHQVRUV WKHQWKH3)&V7KH3)&VVHQGDFRPPDQGWRWKH$&(VWR
((&V PRYHDOOVSRLOHUVWRWKHLUIXOOXSSRVLWLRQ
7KUXVWOHYHUDQJOH
7KUXVWUHYHUVHUVOHHYHSRVLWLRQ :KHQWKHSLORWPRYHVWKHVSHHGEUDNHOHYHUWRWKH'2:1
7UXFNWLOWSUHVVXUHVHQVRUV SRVLWLRQRUVWRZVWKHUHYHUVHWKUXVWOHYHUVWKH3)&V
:HLJKWRQZKHHOVVHQVRUV ZLOOFRPPDQGWKHVSRLOHUVGRZQ
%HIRUHODQGLQJWKHSLORWPRYHVWKHVSHHGEUDNHOHYHU
IURPWKH'2:1SRVLWLRQWRWKH$50SRVLWLRQ:KHQWKH
DLUSODQHODQGVWKHWUXFNWLOWSUR[LPLW\VHQVRUVPRYH
WRWKHWDUJHWIDUSRVLWLRQDQGWKHWUXFNWLOWSUHVVXUH
VHQVRUSURYLGHVLQIRUPDWLRQWKDWWKHUHLVWLOWSUHVVXUH
DYDLODEOH7KH3)&VXVHWKLVLQIRUPDWLRQDVDJURXQG
VLJQDO7KH3)&VFRQILUPWKDWWKHDLUSODQHLVRQWKH
JURXQGZLWKLQIRUPDWLRQIURPWKHUDGLRDOWLPHWHUVRU
ZHLJKWRQZKHHOVVHQVRUV7KH3)&VXVHWKLVLQIRUPDWLRQ
WRJHQHUDWHDQDXWRVSHHGEUDNHFRPPDQG

'2:1
126(
'2:1 $50('
$872
63(('%5$.( $872
&/87&+ 63(('%5$.(
5(/$<6 $872
63(('%5$.(
126(
632,/(5 $&78$725
83 83 63(('%5$.(/(9(5
75$16'8&(5 3&8
63(('%5$.( $&(
/(9(5
)/,*+7&21752/6
$5,1&%86(6
$,06 6<67(06
&$%,1(7 $5,1&%86(6

3)&
5$',2
$/7,0(7(56 (',8 +<',0 :2:
&$5'6 &$5'6
36(8
$87263(('%5$.(
7+58675(9(56(
0(&+$1,&$/&211(&7,21 6:,7&+
((&
$87263(('%5$.(&21752/*(1(5$/'(6&5,37,21

$87263(('%5$.(&21752/&20321(17/2&$7,216
*HQHUDO
7KHDXWRVSHHGEUDNHFRPSRQHQWVDUHRQWKHOHIWVLGHRI
WKHFRQWUROVWDQGLQWKHIOLJKWGHFN7KHVHFRPSRQHQWV
LQFOXGH
7KHDXWRVSHHGEUDNHFOXWFK
7KHDXWRVSHHGEUDNHDFWXDWRU
7KH572VSHHGEUDNHPHFKDQLVP
5HPRYHWKHOHIWSDQHORIWKHFRQWUROVWDQGWRDFFHVV
WKHDXWRVSHHGEUDNHFRPSRQHQWV
7KHWZRDXWRVSHHGEUDNHUHOD\VDUHRQDEUDFNHWEHORZ
WKHFRQWUROVWDQG$FFHVVWRWKHUHOD\VLVWKURXJKWKH
IRUZDUGHTXLSPHQWDFFHVVGRRU

63(('%5$.(
/(9(5
572
63(('%5$.(
0(&+$1,60
)/,*+7'(&.
$87263(('%5$.( )/225%($0 )/225
5(/$<6 &87287)25
&/$5,7<
63(('%5$.(
/(9(5
75$16'8&(5
$87263(('%5$.(
&/87&+
$87263(('%5$.(
$&78$725
):'
)25:$5'(48,30(17
$&&(66'225
$87263(('%5$.(&21752/&20321(17/2&$7,216

58''(5&21752/*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

58''(5&21752/*(1(5$/'(6&5,37,21
*HQHUDO 7ZRJXVWVXSSUHVVLRQSUHVVXUHWUDQVGXFHUVPHDVXUHZLQG
JXVWVRQWKHYHUWLFDOVWDELOL]HU7KHWUDQVGXFHU
7KHSLORWVPDQXDOO\RSHUDWHWKHUXGGHU7KHDXWRSLORW VLJQDOVJRWRWKH$&(VDQGWKHQWRWKH3)&VWKURXJKWKH
DXWRPDWLFDOO\RSHUDWHVLW IOLJKWFRQWUROV$5,1&EXVHV7KH3)&VJLYHFRPPDQGV
WRPRYHWKHUXGGHU3&8V7KLVUXGGHUPRYHPHQWGHFUHDVHV
0DQXDO2SHUDWLRQ5XGGHU3HGDOV WKHHIIHFWRIWKHVLGHJXVW
7KHIOLJKWFUHZXVHVWZRFRQYHQWLRQDOUXGGHUSHGDOVWR 7ZRPRGDODFFHOHURPHWHUVPHDVXUHWKHODWHUDOPRYHPHQW
FRQWURO\DZ RIWKHDIWIXVHODJH7KHDFFHOHURPHWHUVLJQDOVJRWR
WKH$&(VDQGWKHQWRWKH3)&VWKURXJKWKHIOLJKW
)RXUUXGGHUSHGDOSRVLWLRQWUDQVGXFHUVFKDQJHWKH FRQWURO$5,1&EXVHV7KH3)&VFDOFXODWHFRPPDQG
IOLJKWFUHZUXGGHUSHGDOFRPPDQGVWRDQDORJHOHFWULFDO VLJQDOVIRUWKH$&(VWRPRYHWKHUXGGHU3&8VWR
VLJQDOV7KHVHVLJQDOVJRWRWKHIRXUDFWXDWRUFRQWURO GHFUHDVHWKHODWHUDOPRYHPHQWRIWKHIRUZDUGDQGDIW
HOHFWURQLFV $&(V DQGWKHIOLJKWGDWDUHFRUGHU )'5 FDELQ
7KH$&(VFKDQJHWKHVLJQDOVWRGLJLWDOIRUPDW7KHQ
WKH\VHQGWKHPWRWKHWKUHHSULPDU\IOLJKWFRPSXWHUV 7KH3)&VRSHUDWHWKH\DZGDPSHUDQGUXGGHUUDWLR
3)&V WKURXJKWKHIOLJKWFRQWUROV$5,1&EXVHV IXQFWLRQV
7KH3)&VXVHSRVLWLRQGDWDIURPWKHVHFRPSRQHQWVRU 0DQXDO2SHUDWLRQ5XGGHU7ULP
V\VWHPVWRFDOFXODWHFRQWUROVXUIDFHFRPPDQGV
7KHUXGGHUWULPFRQWURORQWKHDLVOHVWDQGDQGWKHWULP
5XGGHUSHGDOV DFWXDWRUOHWWKHIOLJKWFUHZUHPRYHXQZDQWHGUXGGHU
$LUGDWDLQHUWLDOUHIHUHQFHXQLW $',58 SHGDOIRUFHV:KHQWKHSLORWVPRYHWKHUXGGHUWULP
$LUSODQHLQIRUPDWLRQPDQDJHPHQWV\VWHP $,06 FRQWUROWKHVZLWFKVHQGVDVLJQDOWRWKH$&(VDQGWKH
3)&V7KH3)&VDQGWKH$&(VJLYHWKHUXGGHUWULP
7KH3)&VVHQGWKHGLJLWDOFRPPDQGVWRWKH$&(VZKLFK DFWXDWRUFRPPDQGVWRPRYHWKHUXGGHUSHGDOVDQGWKH
FKDQJHWKHPWRDQDORJVLJQDOV7KH$&(VVHQGWKHDQDORJ SRVLWLRQWUDQVGXFHUVWKURXJKWKHIHHODQGFHQWHULQJ
SRVLWLRQFRPPDQGVWRWKHSRZHUFRQWUROXQLWV 3&8V PHFKDQLVP7KHUXGGHUSHGDOSRVLWLRQWUDQVGXFHUVVHQGD
ZKLFKPRYHWKHUXGGHU7KHSRVLWLRQWUDQVGXFHUVRQWKH VLJQDOWRWKH$&(VDQG3)&VWRPRYHWKHUXGGHU
3&8DFWXDWRUSLVWRQVVXSSO\SRVLWLRQIHHGEDFNWRWKH
$&(V 7KHUXGGHUWULPLQGLFDWRURQWKHDLVOHVWDQGVKRZVWKH
SRVLWLRQRIWKHUXGGHUWULP7KHUXGGHUWULPDFWXDWRU
SRVLWLRQWUDQVGXFHUVHQGVDIHHGEDFNVLJQDOWRWKH$&(V

58''(5&21752/*(1(5$/'(6&5,37,21
DQGWKH3)&V7KH3)&VWKHQJLYHFRPPDQGVWRWKHWULP EDFNGULYHDFWXDWRUIRUFH$SLORWRYHUULGHGLVHQJDJHV
LQGLFDWRUWKURXJK$,06 WKHDXWRSLORW
7KHUXGGHUPDQXDOWULPFDQFHOVZLWFKRQWKHDLVOHVWDQG
VHQGVDVLJQDOWRWKH$&(VDQGWKH3)&VWRJLYHDUXGGHU
WULPWR]HURFRPPDQG
:KHQWKHWKUXVWDV\PPHWU\FRPSHQVDWLRQ 7$& VZLWFKRQ

WKH3SDQHOLVLQWKH$872SRVLWLRQWKH3)&V
DXWRPDWLFDOO\FRQWUROWKHUXGGHUWULP7KLVFRQWURO
PDNHVDOORZDQFHIRUDV\PPHWULFDOWKUXVWIURPWKH
HQJLQHV7KH7$&IXQFWLRQGRHVQRWRSHUDWHZKHQWKH7$&
VZLWFKLVLQWKH2))SRVLWLRQ7KHPDQXDOWULPFDQFHO
VZLWFKGRHVQRWUHPRYHUXGGHUWULPFDXVHGE\7$&
$XWRSLORW2SHUDWLRQ
:KHQDXWRODQGLVDFWLYHWKHDXWRSLORWIOLJKWGLUHFWRU
FRPSXWHUV $)'&V FRQWUROWKH\DZDWWLWXGHRIWKH
DLUSODQHIRUFURVVZLQGDQGHQJLQHRXWFRQGLWLRQV7KH
$)'&VVXSSO\\DZFRPPDQGVWRWKH3)&VWKURXJKWKH
IOLJKWFRQWUROV$5,1&EXVHV7KH3)&VXVHWKHVH
LQSXWVWRFDOFXODWHSRVLWLRQFRPPDQGVIRUWKHUXGGHU
7KH3)&VDOVRFDOFXODWHUXGGHUSHGDOEDFNGULYH
FRPPDQGV7KH3)&VVHQGWKHVHFRPPDQGVWRWKH$)'&V
ZKLFKWUDQVPLWUXGGHUPRYHPHQWFRPPDQGVWRWKH
EDFNGULYHDFWXDWRUV7KHEDFNGULYHDFWXDWRUVPRYHWKH
UXGGHUSHGDOVWRDSRVLWLRQLQUHODWLRQWRWKH
DXWRSLORWUXGGHUFRPPDQG
7RGRDQRYHUULGHRIWKHDXWRSLORWWKHIOLJKWFUHZ
DSSOLHVPRUHIRUFHRQWKHUXGGHUSHGDOVWKDQWKH

0$18$/75,0
&$1&(/6:,7&+
58''(575,0
7+5867 &21752/
$6<0&203
$872
2)) 3$)7
$,6/(
329(5+($'3$1(/ 67$1'
58''(575,0 02'$/
$&78$725 $&&(/(520(7(56
58''(5)((/ *86768335(66,21
$1'&(17(5,1* 35(6685(
0(&+$1,60 75$16'8&(56
58''(53('$/
326,7,21
75$16'8&(56 58''(5
3&8
$&(
)/,*+7&21752/6
$5,1&%86(6
$,06
&$%,1(76
$)'& 3)&
%$&.'5,9(
$&78$7256 $',58
58''(575,0 6$$58
0(&+$1,&$/ ,1',&$725 3
&211(&7,21
58''(5&21752/*(1(5$/'(6&5,37,21

58''(5&21752/&20321(17/2&$7,216
*HQHUDO 7KHUXGGHUWULPVHOHFWRUDQGWKHPDQXDOWULPFDQFHO
VZLWFKDUHRQWKH3DIWDLVOHVWDQG7KH7$&VZLWFKLV
7KHUXGGHUFRQWUROFRPSRQHQWVDUHLQWKUHHDUHDV RQWKH3RYHUKHDGSDQHO
9HUWLFDOVWDELOL]HU &RPSRQHQWV%HORZWKH)OLJKW&RPSDUWPHQW
)OLJKWFRPSDUWPHQW
%HORZWKHIOLJKWFRPSDUWPHQWIORRU 7KHRWKHUIRUZDUGFRQWUROVDUHEHORZWKHIOLJKW
FRPSDUWPHQWIORRUDQGDERYHWKHQRVHJHDUZKHHOZHOO
7DLO&RPSRQHQWV 7KHVHDUHWKH
7KHUXGGHUFRQWUROVXUIDFHDQGWKHUXGGHU3&8VDUHRQ &RQWUROURGV
WKHYHUWLFDOVWDELOL]HU7KHUXGGHUWDELVDIWRIWKH /HIWDQGULJKWMDFNVKDIWDVVHPEOLHV
UXGGHU7KUHH3&8VGLUHFWO\FRQQHFWWRWKHUXGGHU %XVURG
$FFHVVWRWKH3&8VLVE\DFFHVVSDQHOVRQWKHOHIWVLGH 5XGGHU)HHODQGFHQWHULQJPHFKDQLVP
RIWKHYHUWLFDOVWDELOL]HU 5XGGHUWULPDFWXDWRU
5XGGHUWULPSRVLWLRQWUDQVGXFHU
7KHWZRJXVWVXSSUHVVLRQSUHVVXUHWUDQVGXFHUVDUHQHDU 5XGGHUSHGDOSRVLWLRQWUDQVGXFHUV
WKHOHDGLQJHGJHRIWKHYHUWLFDOVWDELOL]HUDWDERXW 5XGGHUSHGDOIRUFHWUDQVGXFHUV
KDOIVSDQ 3HGDOGDPSHU
)ULFWLRQEUDNH
7KHWZRPRGDODFFHOHURPHWHUVDUHLQWKHDIWIXVHODJH %DFNGULYHDFWXDWRUV
)OLJKW&RPSDUWPHQW&RPSRQHQWV $FFHVVWRWKHVHFRPSRQHQWVLVWKURXJKWKHIRUZDUG
HTXLSPHQWFHQWHU
7KHVHFRPSRQHQWVDUHLQWKHIOLJKWFRPSDUWPHQW
5XGGHUSHGDOV
5XGGHUSHGDODGMXVWPHQWFUDQNV
5XGGHUWULPVHOHFWRU
0DQXDOWULPFDQFHOVZLWFK

9(57,&$/
67$%,/,=(5
*86768335(66,21 7$&6:,7&+
35(6685( 58''(5
75$16'8&(5
58''(5
58''(5 3('$/6
3&8
58''(57$% 58''(53('$/
$'-8670(17 58''(53('$/
&5$1. $'-8670(17
&5$1.
58''(5
3('$/ 58''(5
3('$/
58''(575,0
02'$/ 6(/(&725$1'
):' $&&(/(520(7(5 0$18$/75,0
&$1&(/6:,7&+
)/,*+7
'(&.)/225
58''(575,0 )5,&7,21
326,7,21 %5$.(
75$16'8&(5 &21752/ &21752/
58''(575,0 52'6 58''(53('$/ 52'6
$&78$725 )25&(
75$16'8&(56
%$&.'5,9(
$&78$725
)((/$1'
&(17(5,1* /()7 %8652' 5,*+7 58''(53('$/ 3('$/
0(&+$1,60 -$&.6+$)7 -$&.6+$)7 326,7,21 '$03(5
$66(0%/< $66(0%/< 75$16'8&(56
127(&21752/:+((/6$1'&21752/
&2/80161276+2:1)25&/$5,7<
58''(5&21752/&20321(17/2&$7,216

58''(5&21752/58''(5$66(0%/<
3XUSRVH 7UDLQLQJ,QIRUPDWLRQ3RLQW
7KHUXGGHUVXSSOLHVFRQWURORIWKHDLUSODQHLQWKH\DZ 7ZRKRLVWDWWDFKSRLQWVDUHRQWKHUXGGHU7KH\DUH
GLUHFWLRQ7KHUXGGHUWDEWXUQVRQWKHORZHUWUDLOLQJ QHDUWKHWRSDQGERWWRPUXGGHUKLQJHV5HPRYHDVPDOO
HGJHRIWKHUXGGHU KLQJHOLQHVHDOSDQHOWRJHWDFFHVVWRWKHKRLVWDWWDFK
SRLQWV
3K\VLFDO'HVFULSWLRQ
7KHUXGGHULVDOLJKWZHLJKWFRPSRVLWHPDWHULDO
VWUXFWXUH7KHVNLQKDVDUHLQIRUFHGJUDSKLWHHSR[\
ZLWKDERQGWRDFRUHRI1RPH[KRQH\FRPE7KHIXOO
GLPHQVLRQVDUHDSSUR[LPDWHO\LQE\LQ PE\
P 7KHUXGGHUZHLJKVDSSUR[LPDWHO\OE
NJ
7KHUXGGHUDWWDFKHVWRWKHYHUWLFDOVWDELOL]HUZLWK
KLQJHV7KUHH3&8VDWWDFKWRWKHUXGGHUDQGPRYHLW
-XPSHUVDQGVWDWLFGLVFKDUJHUVVXSSO\HOHFWURVWDWLF
SURWHFWLRQWRDLUSODQHV\VWHPV
)XQFWLRQDO'HVFULSWLRQ
7KHUXGGHU3&8VKDYHLQWHUQDOVWRSVWKDWSXWDOLPLWRQ
WKHUXGGHUVXUIDFHGHIOHFWLRQ7KHUXGGHUKDVDPD[LPXP
PRYHPHQWRIGHJUHHVLQWKHWZRGLUHFWLRQVDWORZ
DLUVSHHGZLWKQRORDGFRQGLWLRQV
:KHQWKHUHDUHORDGFRQGLWLRQVWKHPD[LPXP3)&VDQG
$&(VFRPPDQGVLJQDOVPRYHWKHUXGGHUWRGHJUHHVLQ
WKHWZRGLUHFWLRQVDWORZDLUVSHHG

9(57,&$/
67$%,/,=(5
833(5/,)7
32,17
+,1*(6
):'
58''(5
$66(0%/<
3&8$77$&+
32,176
/2:(5/,)7
32,17
+,1*(6
58''(57$%
$77$&+32,176 ):'
):' /($',1*('*(9,(:
/22.,1*$)7
58''(5&21752/58''(5$66(0%/<

58''(5&21752/58''(57$%$66(0%/<
3XUSRVH $WIXOOPRYHPHQWRIWKHUXGGHU GHJUHHV WKHUXGGHU
WDEPRYHVGHJUHHVLQUHODWLRQWRWKHUXGGHU7KLV
7KHUXGGHUWDEWXUQVRQWKHORZHUWUDLOLQJHGJHRIWKH JLYHVDGHJUHHWDEPRYHPHQWLQUHODWLRQWRWKH
UXGGHU,WPRYHVLQWKHVDPHGLUHFWLRQDVWKHUXGGHUWR FHQWHUOLQHRIWKHDLUSODQH
LQFUHDVHLWVHIIHFW
3K\VLFDO'HVFULSWLRQ
7ZRKRLVWDWWDFKSRLQWVDUHRQWKHUXGGHUWDE7KH\DUH
7KHUXGGHUWDELVDOLJKWZHLJKWFRPSRVLWHPDWHULDO QHDUWKHWRSDQGERWWRPWDEKLQJHV5HPRYHDVPDOO
VWUXFWXUH7KHVNLQLVUHLQIRUFHGJUDSKLWHHSR[\ZLWKD KLQJHOLQHVHDOSDQHODQGRQHIDLULQJWRJHWDFFHVVWR
ERQGWRDFRUHRI1RPH[KRQH\FRPE7KHRYHUDOO WKHKRLVWDWWDFKSRLQWV
GLPHQVLRQVDUHDSSUR[LPDWHO\LQE\LQ PE\
P 7KHUXGGHUWDEZHLJKVDSSUR[LPDWHO\OE :KHQWKHDLUSODQHLVRQWKHJURXQGZLWKWKHUXGGHUDW
NJ FHQWHUWKHUXGGHUWDEFRQWUROURGVPRYHWKHUXGGHUWDE
WRWKHOHIWRIWKHDLUSODQHFHQWHUOLQH7KLVGHIOHFWLRQ
7KHUXGGHUWDEDWWDFKHVWRWKHUXGGHUE\KLQJHV LVQHFHVVDU\IRUWKHUPDOH[SDQVLRQRIWKHUXGGHUWDE
7KUHHDGMXVWDEOHFRQWUROURGVFDXVHPRYHPHQWRIWKH FRQWUROURGV
UXGGHUWDELQUHODWLRQWRWKHUXGGHUPRYHPHQW7KUHH
IDLULQJVFRYHUWKHFRQWUROURGFRQQHFWLRQVWRWKH
UXGGHUWDE
7KHUXGGHULQGH[SODWHRQWKHXSSHUVNLQRIWKHWDLO
FRQHVKRZVWKHSRVLWLRQRIWKHUXGGHUWDELQUHODWLRQ
WRWKHDLUSODQHFHQWHUOLQH
)XQFWLRQDO'HVFULSWLRQ
7KHUXGGHUWDEKDVDPD[LPXPPRYHPHQWRIGHJUHHVLQ
HDFKGLUHFWLRQLQUHODWLRQWRWKHUXGGHU)RUHDFK
GHJUHHRIPRYHPHQWRIWKHUXGGHUWKHUXGGHUWDEDOVR
PRYHVRQHGHJUHH

9(57,&$/ 58''(5 &21752/ )$,5,1*6

67$%,/,=(5 +,1*(32,17 52'
58''(57$%
+,1*(32,17
):'
58''(57$%
58''(5 $$ $66(0%/<
9(57,&$/
67$%,/,=(5
3$57,$/ +,1*(6
833(5/,)7
32,17
):'
)$,5,1*6 &21752/
52'6
&21752/
52'6
58''(57$%
$ $66(0%/<
58''(57$%
$66(0%/<
$
+,1*(6 /2:(5
/,)7
32,17
):'
):'
5,*+76,'(9,(:2)58''(57$%
58''(5&21752/58''(57$%$66(0%/<

58''(5&21752/)81&7,21$/'(6&5,37,217+5867$6<00(75<&203(16$7,21
7+,63$*(,17(17,21$//</()7%/$1.

58''(5&21752/)81&7,21$/'(6&5,37,217+5867$6<00(75<&203(16$7,21
*HQHUDO 7KH3)&6LVLQQRUPDOPRGH
7KH/$&(DQG5$&(DUHQRWLQGLUHFWPRGH
7KHWKUXVWDV\PPHWU\FRPSHQVDWLRQ 7$& KHOSVFRQWURO
WKHDLUSODQHGXULQJDV\PPHWULFDOHQJLQHWKUXVW :KHQWKH7$&VZLWFKLVLQWKH$872SRVLWLRQWKH7$&
FRQGLWLRQV7KH7$&SURWHFWLRQIXQFWLRQRSHUDWHVLQWKH IXQFWLRQDUPVDXWRPDWLFDOO\7KHFRQGLWLRQVIRU7$&
3)&6QRUPDOPRGHRQO\ DXWRPDWLFDUPDUHWKHPDQXDODUPFRQGLWLRQVDQGWKHVH
FRQGLWLRQV
7KHSLORWFDQGLVDUPWKH7$&IXQFWLRQZLWKWKH7$&
VZLWFKRQWKH3SDQHO 7KH3)&VILQGWKDWWKHDLUSODQHLVRQWKHJURXQG
&$6LVOHVVWKDQNQRWV
,QSXW6LJQDOV 2QHRUERWKHQJLQHVDUHUXQQLQJZLWKWKHWKUXVW
OHYHUVDWWKHLGOHSRVLWLRQRUWKHHQJLQHVDUHQRW
7KH7$&IXQFWLRQJHWVWKUXVWGDWDIRUWKHWZRHQJLQHV UXQQLQJ
IURPWKHHQJLQHGDWDLQWHUIDFHXQLWV (',8 7KH(',8V
XVHWKH1URWDWLRQDOVSHHGVLJQDOVIURPWKHHOHFWURQLF 7KH7$&IXQFWLRQGLVDUPVZKHQWKH7$&VZLWFKLVLQWKH
HQJLQHFRQWUROOHUV ((&V WRFDOFXODWHWKHWKUXVW 2))SRVLWLRQ,WDOVRGLVDUPVIRUDQ\RQHRIWKHVH
YDOXHV7KH((&VDOVRVHQGRWKHUHQJLQHGDWDWRWKH FRQGLWLRQV
(',8VWRPDNHVXUHWKH1VLJQDOLVDFFXUDWH7KH(',8V
VHQGWKHHQJLQHWKUXVWGDWDWRWKH3)&VWKURXJKWKH $Q\VLJQDOXVHGE\7$&LVQRWVDWLVIDFWRU\
$,06 7KHUXGGHUWULPLVGHIHFWLYH
7KH3)&6LVQRWLQQRUPDOPRGH
7$&DOVRXVHVWKH&$6VLJQDOIURPWKH$',58IODS 7KH/$&(RU5$&(LVLQGLUHFWPRGH
SRVLWLRQIURPWKH)6(8VDQGWKH7$&VZLWFKSRVLWLRQ 7KH/$&(RU5$&(VWDWXVVLJQDOLVQRWDYDLODEOH
IURPWKH&$&(
7KH7$&IXQFWLRQLVDFWLYHZKHQLWLVDUPHGDQGDOORI
)XQFWLRQDO'HVFULSWLRQ WKHVHFRQGLWLRQVRFFXU
7KH7$&IXQFWLRQDUPVPDQXDOO\RUDXWRPDWLFDOO\7$& &$6LVPRUHWKDQNQRWV
DUPVPDQXDOO\ZKHQ\RXPRYHWKH7$&VZLWFKIURP2))WR 7KHWKUXVWUHYHUVHUVGRQRWKDYHDFRPPDQGWR
$872DQGDOOWKHVHFRQGLWLRQVRFFXU GHSOR\
7KHWKUXVWGLIIHUHQFHEHWZHHQWKHWZRHQJLQHVLV
$OOWKHVLJQDOVXVHGE\7$&DUHVDWLVIDFWRU\ PRUHWKDQOEV
7KHUXGGHUWULPFDQRSHUDWH

58''(5&21752/)81&7,21$/'(6&5,37,217+5867$6<00(75<&203(16$7,21
:KHQ7$&LVDFWLYHWKH3)&VXVHWKHGLIIHUHQFHEHWZHHQ ,I7$&LVDFWLYHGXULQJDXWRODQGRSHUDWLRQRIWKH
WKHWKUXVWVLJQDOVIURPWKH(',8VWRFDOFXODWHUXGGHU DXWRSLORWWKHHQJLQHRXWFRUUHFWLRQRIWKHDXWRSLORW
DQGUXGGHUWULPFRPPDQGV7KH7$&IXQFWLRQLQLWLDOO\ LVGLVDEOHG7KLVLVGRQHVRWKLVIXQFWLRQRIWKH
FDOFXODWHVDKLJKUDWHUXGGHUFRPPDQGWRPDNHDOORZDQFH DXWRSLORWGRHVQRWFRQWUROGXULQJ7$&RSHUDWLRQ,IWKH
IRUWKH\DZPRPHQWFDXVHGE\WKHWKUXVWGLIIHUHQFH SLORWPRYHVWKHSHGDOV7$&VWD\VDFWLYHEXWWKH
7KLVFRPPDQGJRHVWRWKH$&(VWRPRYHWKHUXGGHU3&8V DXWRSLORWGLVHQJDJHV
7KH7$&IXQFWLRQDOVRVHQGVUXGGHUWULPFRPPDQGVWRWKH 7KH7$&IXQFWLRQLVQRORQJHUDFWLYHZKHQWKHWKUXVW
$&(V7KHUXGGHUWULPDFWXDWRUPRYHPHQWWKHQEDFNGULYHV GLIIHUHQFHEHWZHHQWKHWZRHQJLQHVLVOHVVWKDQ
WKHUXGGHUSHGDOVDQGWKHSHGDOSRVLWLRQWUDQVGXFHUV SHUFHQWRIWKHPD[LPXPUDWHGWKUXVW
7KH3)&VPDNHDOORZDQFHIRUWKHLQSXWVLJQDOVIURPWKH
SHGDOSRVLWLRQWUDQVGXFHUVWRNHHSDQHDUFRQVWDQW ,IWKHDLUVSHHGGDWDEHFRPHVXQUHOLDEOHWKH7$&
UXGGHU3&8FRPPDQG IXQFWLRQXVHVWKHIODSSRVLWLRQVLJQDOWROLPLWWKH
JDLQRIWKHUXGGHUDQGUXGGHUWULPFRPPDQG
7KH3)&VOLPLWWKH7$&DXWKRULW\WRSHUFHQWRI
DYDLODEOHUXGGHU ,QGLFDWLRQV
,I7$&LVDFWLYHZKHQWKHUHLVDFRPPDQGIRUWKUXVW 7KHDPEHU2))OLJKWVKRZVLQWKH7$&VZLWFKRQWKH3
UHYHUVHUGHSOR\PHQWGXULQJODQGLQJRUUHIXVHGWDNHRII SDQHODQGWKHDGYLVRU\DQGVWDWXVPHVVDJHV7+5867$6<0
WKH3)&VDXWRPDWLFDOO\UDPSWKH7$&WULPFRPPDQGVWR &203VKRZZKHQRQHRIWKHVHFRQGLWLRQVRFFXUV
]HURWULP7KHWULPDFWXDWRUUDPSVWR]HURDWDVSHHG
RIXQLWVSHUVHFRQG 7KHUXGGHUWULPLVGHIHFWLYH
/RVVRIWKHWKUXVWGDWDIURPRIFKDQQHOVLQRQH
:KHQ7$&LVDFWLYHWKHSLORWFDQXVHWKHUXGGHUSHGDOV (',8
RUWKHUXGGHUWULPVZLWFKHV7KH3)&VDGGWKHVHFRPPDQG /RVVRIOHIWDQGULJKWHQJLQHUXQQLQJGDWD
VLJQDOVWRWKH7$&FRPPDQGVWRFRQWUROWKHUXGGHU3&8V 7KHWZRHQJLQHVDUHQRWUXQQLQJLQWKHDLU
,IWKHSLORWSXVKHVRQWKHPDQXDOWULPFDQFHOVZLWFK 7KH5/RU&$&(LVIDLOHGRULQGLUHFWPRGH
WKH3)&VVHQGDFRPPDQGWRWKHUXGGHUWULPDFWXDWRUWR 7KH3)&6LVQRWLQQRUPDOPRGH
UHPRYHDQ\LQSXWPDGHZLWKWKHUXGGHUWULPVHOHFWRU 7KH7$&VZLWFKLVLQWKH2))SRVLWLRQ
7KH7$&FRPPDQGWRWKHUXGGHUWULPDFWXDWRULVQRW 7KH7$&VZLWFKSRVLWLRQVLJQDOLVORVW
UHPRYHG
:KHQWKH7$&IXQFWLRQLVDUPHGDIWHULWZDVGLVDUPHG
WKHDERYHLQGLFDWLRQVGRQRWVKRZ

7+5867
$6<0&203
58''(575,0
$872Z
$&78$725
2)) D
329(5+($'3$1(/
58''(5
$&(
3&8 )/,*+7&21752/6
$5,1&%86(6
$,06
&$%,1(7 6<67(06
$5,1&%86(6
3)&
$',58
(',8 )6(8
((&
0(&+$1,&$/&211(&7,21
58''(5&21752/)81&7,21$/'(6&5,37,217+5867$6<00(75<&203(16$7,21

(/(9$725&21752/*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

(/(9$725&21752/*(1(5$/'(6&5,37,21
*HQHUDO 7KH3)&VVHQGGLJLWDOFRPPDQGVWRWKH$&(VZKLFK
FKDQJHWKHPWRDQDORJVLJQDOV7KH$&(VWKHQVHQGWKH
7KHSLORWVPDQXDOO\RSHUDWHWKHHOHYDWRUVDQGWKH DQDORJVXUIDFHSRVLWLRQFRPPDQGVWRWKHSRZHUFRQWURO
DXWRSLORWDXWRPDWLFDOO\RSHUDWHVWKHP XQLWV 3&8V 7KH3&8VPRYHWKHHOHYDWRUV7KHSRVLWLRQ
WUDQVGXFHUVRQWKH3&8K\GUDXOLFSLVWRQVVHQGDFWXDWRU
0DQXDO2SHUDWLRQ SRVLWLRQIHHGEDFNWRWKH3)&VWKURXJKWKH$&(V
7KHIOLJKWFUHZXVHVWZRFRQYHQWLRQDOFRQWUROFROXPQV 7KH3)&VXVHGDWDIURPWKH$',58WRFDOFXODWHHOHYDWRU
WRFRQWUROSLWFK7KH\FRQQHFWWRWRUTXHWXEHVWKDW IHHOFRPPDQGV7KHIHHOFRPPDQGJRHVWKURXJKWKH$&(WR
FRQQHFWE\DEUHDNRXWPHFKDQLVP7KLVOHWVRQHFRQWURO WKHOHIWDQGULJKWIHHODFWXDWRUVRQWKHHOHYDWRUIHHO
FROXPQPRYHLIWKHRWKHUKDVDMDP XQLWV7KHIHHODFWXDWRUVVXSSO\DYDULDEOHIHHOWRWKH
FROXPQLQUHODWLRQWRDLUVSHHG
7KHIOLJKWFUHZFDQPDNHPDQXDOFRPPDQGVWRWKH
HOHYDWRULQWKHQRUPDOPRGHZLWKWKHSLWFKWULP 7KH$&(VJHWDQDORJVLJQDOVIURPWKHIRUFHWUDQVGXFHUV
VZLWFKHV7KLVLVSRVVLEOHRQO\LIWKHDLUSODQHLVLQ DQGVHQGWKHPWRWKH3)&V7KH3)&VXVHVLJQDOVIURP
WKHDLU WKHWZRGXDOIRUFHWUDQVGXFHUVWRGRDFKHFNRIWKH
FRQWUROFROXPQQXOOSRVLWLRQ7KHVLJQDOVIURPWKH
6L[SRVLWLRQWUDQVGXFHUVFKDQJHIOLJKWFUHZFRQWURO RWKHUWZRIRUFHWUDQVGXFHUVJRWRWKHIOLJKWGDWD
FROXPQFRPPDQGVWRDQDORJHOHFWULFDOVLJQDOV)RXU UHFRUGHU
SLWFKUDWHVHQVRUVPHDVXUHWKHSLWFKUDWH7KHVH
VLJQDOVJRWRWKHIRXUDFWXDWRUFRQWUROHOHFWURQLFV $XWRSLORW2SHUDWLRQ
$&(V WKDWFKDQJHWKHVLJQDOWRGLJLWDOIRUPDW7KH
GLJLWDOVLJQDOVJRWRWKHSULPDU\IOLJKWFRPSXWHUV :KHQWKHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V
3)&V WKURXJKWKH$5,1&EXVHV HQJDJHWKH\FRQWURODLUSODQHSLWFK7KH$)'&VVXSSO\
SLWFKFRPPDQGVWRWKH3)&VWKURXJKWKHIOLJKWFRQWUROV
7KH3)&VXVHGDWDIURPWKHVHVRXUFHVWRFDOFXODWH $5,1&EXVHV7KH3)&VXVHWKHVHFRPPDQGVWRPDNH
FRQWUROVXUIDFHFRPPDQGV SRVLWLRQFRPPDQGVIRUWKHHOHYDWRUV7KHVHSRVLWLRQ
FRPPDQGVJRWKURXJKWKH$&(VWRWKH3&8V
$LUGDWDLQHUWLDOUHIHUHQFHXQLW $',58
3LWFKUDWHVHQVRU 7KH3)&VDOVRVXSSO\FROXPQEDFNGULYHFRPPDQGV7KH
$LUSODQHLQIRUPDWLRQPDQDJHPHQWV\VWHP $,06 3)&VVHQGWKHVHFRPPDQGVWRWKH$)'&VZKLFKVXSSO\
FROXPQPRYHPHQWFRPPDQGVWRWKHEDFNGULYHDFWXDWRUV
7KHEDFNGULYHDFWXDWRUVPRYHWKHFRQWUROFROXPQVWKH

(/(9$725&21752/*(1(5$/'(6&5,37,21
VDPHDVWKHSLORWPRYHVWKHPPDQXDOO\IRUWKHVDPH
VXUIDFHPRYHPHQW7KLVJLYHVWKHIOLJKWFUHZYLVXDO
IHHGEDFNZKHQWKH$)'6PRYHVWKHIOLJKWFRQWURO
VXUIDFHV7KHIOLJKWFUHZFDQGRDQRYHUULGHRIWKH
DXWRSLORWZLWKVXIILFLHQWIRUFHRQWKHFRQWUROFROXPQ
WRSXVKDJDLQVWWKHEDFNGULYH
3URWHFWLRQ)XQFWLRQV
2YHUVSHHGDQGVWDOOSURWHFWLRQIXQFWLRQVLQWKH3)&V
VXSSO\IOLJKWHQYHORSHSURWHFWLRQLQPDQXDODQG
DXWRSLORWRSHUDWLRQ7KHRYHUVSHHGSURWHFWLRQVXSSOLHV
DSLWFKXSHOHYDWRUFRPPDQG7KHVWDOOSURWHFWLRQ
VXSSOLHVDSLWFKGRZQHOHYDWRUFRPPDQG

3,7&+
5$7(
6(1625
3,7&+
75,0 3,7&+
6:,7&+(6 75,0
6:,7&+
3&8 5(/(9$725
&21752/ (/(9$725
&2/8016 )((/
$&78$725
(/(9$725
)((/81,7
3&8 /(/(9$725
)25&(
75$16'8&(5
&2/801 326,7,21
%5($.287 75$16'8&(5
0(&+$1,60 $&( )/,*+7&21752/6
$5,1&%86(6
%$&.'5,9( $)'& 3)& $,06&$%,1(7 $',58

$&78$725 6$$58
0(&+$1,&$/
&211(&7,21
(/(9$725&21752/*(1(5$/'(6&5,37,21

(/(9$725&21752/&20321(17/2&$7,216
*HQHUDO :LQJ)URQW6SDU&RPSRQHQWV
3LWFKFRQWUROFRPSRQHQWVDUHLQWKHVHDUHDV 7KHSLWFKUDWHVHQVRUVDUHRQWKHIRUZDUGVLGHRIWKH
IURQWVSDURIWKHZLQJFHQWHUVHFWLRQ7KH\DUHDWWKH
)OLJKWFRPSDUWPHQW DIWHQGRIWKHIRUZDUGFDUJRFRPSDUWPHQW$FFHVVWR
%HORZWKHIOLJKWFRPSDUWPHQWIORRU WKHVHVHQVRUVLVWKURXJKWKHIRUZDUGFDUJRGRRU
:LQJIURQWVSDU
7DLO 7DLO&RPSRQHQWV
)OLJKW&RPSDUWPHQW&RPSRQHQWV 7KHHOHYDWRUVDQGWKHLU3&8VDUHRQWKHUHDUVSDURI
WKHKRUL]RQWDOVWDELOL]HU7ZR3&8VFRQQHFWWRHDFK
7KHFRQWUROFROXPQVDUHLQWKHIOLJKWFRPSDUWPHQW HOHYDWRU$FFHVVWRWKH3&8VLVE\SDQHOVEHORZWKH
VWDELOL]HU
&RPSRQHQWV%HORZWKH)OLJKW&RPSDUWPHQW
7KHVHIRUZDUGFRQWUROVDUHEHORZWKHIOLJKWFRPSDUWPHQW
IORRUDQGDERYHWKHQRVHJHDUZKHHOZHOO
&ROXPQWRUTXHWXEHV
&ROXPQEDODQFHZHLJKWV
&ROXPQGDPSHUV
6WLFNVKDNHUDFWXDWRUV
&ROXPQIRUFHWUDQVGXFHUV
(OHYDWRUIHHOXQLWV
&ROXPQEDFNGULYHDFWXDWRUV
&ROXPQEUHDNRXWPHFKDQLVP
$FFHVVWRWKHVHFRPSRQHQWVLVWKURXJKWKHIRUZDUG
HTXLSPHQWFHQWHUGRRU

&21752/
&2/801 3,7&+5$7(
6(1625
&2/801
'$03(5
(/(9$725
3&8
67,&.6+$.(5
$&78$725
(/(9$725
)((/81,7 &2/80172548(
78%(
&2/801326,7,21
75$16'8&(56
&2/801
&2/801)25&( %$/$1&(
75$16'8&(5 :(,*+7
&2/801 &2/801
%$&.'5,9( %5($.287
$&78$725 0(&+$1,60
(/(9$725&21752/&20321(17/2&$7,216

(/(9$725&21752/)81&7,21$/'(6&5,37,21(/(9$725)((/
7+,63$*(,17(17,21$//</()7%/$1.

(/(9$725&21752/)81&7,21$/'(6&5,37,21(/(9$725)((/
*HQHUDO 6HFRQGDU\0RGH
7KH3)&6FRQWUROVWKHHOHYDWRUIHHODFWXDWRUVDQGZRUNV ,QWKHVHFRQGDU\3)&6PRGHWKH3)&FDOFXODWHVIHHO
ZLWKWKHHOHYDWRUIHHOXQLWWRVXSSO\UHVLVWDQFHWRWKH FRPPDQGVDVDIXQFWLRQRIIODSVDQGVODWVSRVLWLRQ7KH
PRYHPHQWRIWKHFRQWUROFROXPQ )6(8VVXSSO\WKURXJKWKH$&(VDGLVFUHWHIODSVDQG
VODWVUHWUDFWHGVLJQDO:KHQWKHIODSVDQGVODWVDUH
7KH3)&VFRQWUROHOHYDWRUIHHOLQWKHQRUPDODQG QRWUHWUDFWHGDORZIHHOFRPPDQGLVPDGH:KHQWKH
VHFRQGDU\PRGHVDQGWKH/DQG&$&(VFRQWUROLWLQWKH IODSVDQGVODWVDUHUHWUDFWHGDKLJKIHHOFRPPDQGLV
GLUHFWPRGH PDGH
(OHYDWRU)HHO$FWXDWRU 'LUHFW0RGH
7KHHOHYDWRUIHHODFWXDWRUFRQWDLQVDEUXVKOHVVYGF 7KH$&(XVHVWKH)6(8GLVFUHWHIODSVDQGVODWV
UHYHUVLEOHPRWRUDQGDY59'7WRVXSSO\DQDFWXDWRU UHWUDFWHGVLJQDOWRFDOFXODWHIHHODFWXDWRUFRPPDQGVLQ
SRVLWLRQVLJQDO WKHGLUHFWPRGH:KHQWKHIODSVDQGVODWVDUHQRW
UHWUDFWHGLWPDNHVDORZIHHOFRPPDQG:KHQWKHIODSV
1RUPDO0RGH DQGVODWVDUHUHWUDFWHGLWPDNHVDKLJKIHHOFRPPDQG
,QWKHQRUPDOPRGHWKH3)&FDOFXODWHVHOHYDWRUIHHO )DLOXUH0RQLWRU
FRPPDQGVDVDIXQFWLRQRIDLUVSHHG$VDLUVSHHG
LQFUHDVHVLWFRPPDQGVWKHDFWXDWRUWRH[WHQG$V ,QQRUPDOPRGHLIWKH3)&GHWHFWVDGLIIHUHQFHEHWZHHQ
DLUVSHHGGHFUHDVHVWKH3)&FRPPDQGVWKHDFWXDWRUWR WKHRXWSXWDQGWKHIHHGEDFNVLJQDOVIURPRQHRIWKH
UHWUDFW7KLVUHVXOWVLQPRUHRUOHVVUHVLVWDQFH IHHO IHHODFWXDWRUVLWVKXWVRIIWKHVLJQDOWRWKDW
WRPRYHPHQWRIWKHFRQWUROFROXPQ7KHFRPPDQGJRHVWR DFWXDWRU7KHIDLOHGDFWXDWRULVVSULQJORDGHGWRD
WKHIHHODFWXDWRUWKURXJKWKH$&( ]HURIRUFHLQSXW
'XULQJWDNHRIIWKHIHHODFWXDWRUVGLVHQJDJHDERYH 7KH3)&WKHQFRPPDQGVWKHRWKHUDFWXDWRUZLWKDGRXEOHG
NQRWV7KHIHHODFWXDWRUVHQJDJHWRSURYLGHYDULDEOH VLJQDOWKDWFRPSHQVDWHVIRUWKHIDLOHGDFWXDWRU
IHHOVHFRQGVDIWHUWKHJURXQGWRDLUWUDQVLWLRQ2Q %HFDXVHRIWKLVWKHIHHOIRUFHDWWKHFRQWUROFROXPQV
WKHJURXQGZLWKDLUVSHHGEHORZNQRWVWKHIHHO UHPDLQVWKHVDPH
DFWXDWRUVHQJDJHWRSHUPLWWKHIOLJKWFUHZWRGRD
FKHFNRIWKHIHHOIRUFHVGXULQJWKHIUHHGRPRIFRQWUROV
FKHFN

(/(9$725&21752/)81&7,21$/'(6&5,37,21(/(9$725)((/
,QGLFDWLRQV
7KHVWDWXVPHVVDJH)/,*+7&21752/6<6VKRZVWKDWWKHUH
LVDIDLOXUHLQRQHRUPRUHHOHYDWRUIHHODFWXDWRUV

$',58 1250$/ )$,/85(

&$6 02'( 021,725
6(&21'$5<
02'( ',5(&7
02'(
02725
',5(&7
02'(
+,)((/ +,)((/
/2)((/ /2)((/
83 $&78$725
326,7,21
6(&21'$5< 83 )(('%$&.
02'( 59'7
(/(9$725)((/
&21752//$:6 81,7
3)& / )((/

&$&( $&78$725
)6(8)/$36/$7
5(75$&7('',6&5(7(
(/(9$725&21752/)81&7,21$/'(6&5,37,21(/(9$725)((/

+25,=217$/67$%,/,=(5&21752/*(1(5$/'(6&5,37,21
*HQHUDO OHYHUVWRFRQWUROWKHK\GUDXOLFSUHVVXUHWRWKHPRWRUV
DQGEUDNHV
7KH3)&VJLYHFRPPDQGVIRUDXWRPDWLFPRYHPHQWRIWKH
VWDELOL]HU7KHSLORWVPDQXDOO\JLYHFRPPDQGVIRUWKH 7ZRK\GUDXOLFPRWRUVWKDWXVHGLIIHUHQWK\GUDXOLF
VWDELOL]HUWRPRYH V\VWHPSRZHUVRXUFHVFDXVHWKHEDOOVFUHZDFWXDWRUWR
WXUQ7ZRK\GUDXOLFEUDNHVRSHUDWHZLWKWKHPRWRUVDQG
)OLJKW&RPSDUWPHQW&RQWUROV JHWSUHVVXUHIURPWKHVDPHK\GUDXOLFV\VWHPV7KH
EUDNHVUHOHDVHDQGWKHPRWRUWXUQVZLWKK\GUDXOLF
7KHSLORWVRSHUDWHWZRSLWFKWULPVZLWFKHVIRUPDQXDO SUHVVXUH:KHQWKHUHLVORZSUHVVXUHWKHEUDNHVVHW
SLWFKWULPFRQWURO7KHVZLWFKPRGXOHVDUHRQWKH DQGWKHPRWRUVGRQRWRSHUDWH7KLVSUHYHQWVPRYHPHQW
RXWERDUGVLGHRIHDFKFRQWUROZKHHO7KH\VHQG RIWKHVWDELOL]HU
HOHFWULFDOSLWFKWULPVLJQDOVWRWKH$&(V
7KHKRUL]RQWDOVWDELOL]HULVDRQHSLHFHQHJDWLYHOLIW
7ZRDOWHUQDWHSLWFKWULPOHYHUVDUHRQWKHFDSWDLQVLGH DLUIRLO,WPRYHVDURXQGLWVUHDUVSDU$EDOOVFUHZ
RIWKHFRQWUROVWDQG7KHVHOHYHUVPHFKDQLFDOO\FRQWURO DFWXDWRUDWWDFKHGWRWKHIURQWVSDUPRYHVWKH
VWDELOL]HUPRYHPHQW VWDELOL]HUOHDGLQJHGJHWRDPD[LPXPRIGHJUHHVXS
DQGGHJUHHVGRZQ
7ZRJXDUGHGFXWRXWVZLWFKHVRQWKHDLVOHVWDQGFRQWURO
K\GUDXOLFVKXWRIIYDOYHVRQWKHVWDELOL]HUWULPFRQWURO &DEOHVFRQQHFWWRWKUHHVWDELOL]HUSRVLWLRQPRGXOHV
PRGXOHV 67&0V :KHQWKHSLORWPRYHVWKHVZLWFKHVWR 630V LQWKHVWDELOL]HUFRPSDUWPHQW7KH630VVXSSO\
WKHFXWRXWSRVLWLRQK\GUDXOLFSUHVVXUHWRWKH VWDELOL]HUSRVLWLRQGDWDWRWKH$&(V
K\GUDXOLFPRWRUVJRHVRII
&ROXPQ&XWRXW
7ZRVWDELOL]HUSRVLWLRQLQGLFDWRUVRQWKHFRQWUROVWDQG
VKRZWKHSRVLWLRQRIWKHVWDELOL]HU$JUHHQEDQGRQ :KHQWKHSLORWPRYHVWKHFRQWUROFROXPQLQWKHRSSRVLWH
WKHLQGLFDWRUVKRZVWKHFRUUHFWVWDELOL]HUSRVLWLRQIRU GLUHFWLRQRIWKHSLWFKFRPPDQGHGE\WKHSLWFKWULP
WDNHRII6HHWKHKRUL]RQWDOVWDELOL]HUSRVLWLRQ VZLWFKHVWKH3)&VUHPRYHWKHSLWFKFRPPDQGWRWKH
LQGLFDWLRQVHFWLRQIRUPRUHLQIRUPDWLRQ $7$ 67&0V7KLVVWRSVWKHVWDELOL]HUPRYHPHQW
6WDELOL]HU&RQWUROV 6WDELOL]HU$XWRPDWLF&XWRXW
7ZRVWDELOL]HUWULPFRQWUROPRGXOHV 67&0V UHFHLYH ,IWKHUHLVDQXQFRPPDQGHGSLWFKWULPWKH3)&VJLYHD

FRPPDQGVIURPWKH$&(VDQGWKHDOWHUQDWHSLWFKWULP FRPPDQGWRFORVHWKH67&0K\GUDXOLFVKXWRIIYDOYHV

+<'5$8/,&
%5$.(6
$/71
&21752/:+((/3,7&+ $/7(51$7(
75,06:,7&+02'8/(6 3,7&+75,0 67$%,/,=(5
/(9(56 326,7,21
02'8/(6
67&0

&67$% 5
+<'5$8/,&
$&( 1250 027256
&87287
126('1 67$%,/,=(5

67$%,/,=(5

&87287 67$%,/,=(5%$//6&5(:
)/,*+7&21752/6 6:,7&+(6 $&78$725

$5,1&

%86(6

6
7
$
%
126(83
67$%,/,=(5
326,7,21
,1',&$7256 $,06
&$%,1(76
0(&+$1,&$/
&211(&7,21 3)&
+<'5$8/,& $',58 6$$58
&211(&7,21
+25,=217$/67$%,/,=(5&21752/*(1(5$/'(6&5,37,21

+25,=217$/67$%,/,=(5&21752/&20321(17/2&$7,216)/,*+7'(&.$1'%(/2:
*HQHUDO
6WDELOL]HUV\VWHPFRPSRQHQWVDUHLQWKHIOLJKWGHFNDQG
EHORZWKHIOLJKWGHFN
)OLJKW'HFN&RPSRQHQWV
7ZRSLWFKWULPVZLWFKHVDUHRQWKHRXWERDUGVLGHRI
HDFKFRQWUROZKHHO7KHVZLWFKHVKDYHWKUHHSRVLWLRQV
QRVHXSQRVHGRZQDQGRII
7ZRDOWHUQDWHSLWFKWULPOHYHUVDUHRQWKH3FRQWURO
VWDQG7KH\FRQQHFWE\FDEOHVWRPHFKDQLFDOYDOYHVRQ
WKH67&0V
7ZRJXDUGHGVWDELOL]HUFXWRXWVZLWFKHVDUHRQWKH3
FRQWUROVWDQG(DFKVZLWFKUHPRYHVK\GUDXOLFSRZHUIURP
DK\GUDXOLFPRWRUDQGEUDNHZKHQSXWLQWKH&87287
SRVLWLRQ
7ZRVWDELOL]HUSRVLWLRQLQGLFDWRUVDUHRQWKH3
FRQWUROVWDQG7KH\ERWKKDYHDJUHHQEDQGWRVKRZZKHQ
WKHVWDELOL]HULVLQWKHSURSHUSRVLWLRQIRUWDNHRII
&RPSRQHQWV%HORZWKH)OLJKW'HFN
7KHDXWRVKXWGRZQUHOD\VDUHEHWZHHQIOLJKWGHFNIORRU
EHDPVLQWKHIRUZDUGHTXLSPHQWFHQWHU
7KHSLWFKWULPFRQWUROIRUZDUGTXDGUDQWVDUHEHORZWKH
FRQWUROVWDQG$FFHVVLVWKURXJKWKHIRUZDUGHTXLSPHQW
FHQWHU

3,7&+75,0
6:,7&+
&21752/:+((/
)/225%($0
$8726+87'2:1 &87287)25
5(/$<6 &/$5,7<
3,7&+75,0&21752/
)25:$5'48$'5$17
$/7(51$7(
3,7&+75,0
/(9(5
67$%,/,=(5
326,7,21
,1',&$725
):'(48,30(17
$&&(66'225 3&21752/
67$1' &87287 67$%,/,=(5
):' 6:,7&+ 326,7,21
,1',&$725
+25,=217$/67$%,/,=(5&21752/&20321(17/2&$7,216)/,*+7'(&.$1'%(/2:

+25,=217$/67$%/,=(5&21752/&20321(17/2&$7,2167$,/
7DLO&RPSRQHQWV
7KHVWDELOL]HULVDVLQJOHXQLW,WDWWDFKHVWRWKHDIW
IXVHODJHE\KLQJHVRQWKHVWDELOL]HUUHDUVSDU7KH
IRUZDUGVWDELOL]HUVWUXFWXUHDWWDFKHVWRDEDOOQXWRQ
WKHVWDELOL]HUEDOOVFUHZ7KHVWDELOL]HUEDOOVFUHZLV
RQWKHDLUSODQHVWUXFWXUHLQWKHVWDELOL]HU
FRPSDUWPHQW$FFHVVWRWKLVDUHDLVE\DVHUYLFHDFFHVV
GRRURQWKHOHIWVLGHRIWKHORZHUDIWIXVHODJH
$OVRLQWKHVWDELOL]HUFRPSDUWPHQWDUHWKHWKUHH
VWDELOL]HUSRVLWLRQPRGXOHV 630V DVVHPEOLHVDQGWKH
WZRVWDELOL]HUWULPFRQWUROPRGXOHV 67&0V
&DEOHVFRQQHFWWRWKHIRUZDUGHQGRIWKHVWDELOL]HU
VWUXFWXUHDQGPHFKDQLFDOO\WUDQVPLWVWDELOL]HUPRYHPHQW
WRWKHVWDELOL]HUSRVLWLRQPRGXOHV
7KH67&0VDUHLPPHGLDWHO\DIWRIWKHSUHVVXUHEXONKHDG
QHDUWKHFHLOLQJRIWKHVWDELOL]HUFRPSDUWPHQW

67$%,/,=(5326,7,21
02'8/($66(0%/<
67$%,/,=(575,0 67$%,/,=(5
&21752/02'8/( 326,7,21
02'8/(
67&0

67$%,/,=(5
):' %$//6&5(:
9,(:/22.,1*83:,7+7+(6(59,&($&&(66'22523(1
+25,=217$/67$%/,=(5&21752/&20321(17/2&$7,2167$,/

+25,=217$/67$%,/,=(5326,7,21,1',&$7,21*(1(5$/'(6&5,37,21
3XUSRVH 7KHVWDELOL]HUSRVLWLRQLQGLFDWLQJV\VWHPRSHUDWHVLQ
QRUPDOVHFRQGDU\DQGGLUHFWPRGHV
7KHVWDELOL]HUSRVLWLRQLQGLFDWLRQV\VWHPPHDVXUHVWKH
SRVLWLRQRIWKHVWDELOL]HUDQGVHQGVWKLVGDWDWRWKH
$&(V7KH$&(VVHQGWKHGDWDWRWKH3)&VIRUVWDELOL]HU
SRVLWLRQFDOFXODWLRQDQGFRQWURO7KH3)&VVHQGWKH
VWDELOL]HUSRVLWLRQVLJQDOVWRWKH$,06ZKLFKFRQWUROV
WKHSRVLWLRQLQGLFDWRUV
6WDELOL]HU3RVLWLRQ,QGLFDWLRQ
7KHWKUHHVWDELOL]HUSRVLWLRQPRGXOHVVHQGVLJQDOVWR
WKUHH$&(V7KH$&(VFKDQJHWKHVLJQDOVIURPDQDORJWR
GLJLWDODQGVHQGWKHPWRWKH3)&V
7KH3)&VXVHWKHSRVLWLRQPRGXOHVLJQDOVWRFRQWUROWKH
VWDELOL]HUSRVLWLRQ7KH3)&VWKHQVHQGWKHVWDELOL]HU
SRVLWLRQVLJQDOVWRWKH$,067KH$,06VHQGVWKHP
WKURXJKWKH$5,1&EXVWRWKHVWDELOL]HUSRVLWLRQ
LQGLFDWRUV
7KH$,06DOVRVHWVWKHJUHHQEDQGGLVSOD\RQHDFK
SRVLWLRQLQGLFDWRU7KH:(8VFDOFXODWHZKLFKRIWKH
WKUHHJUHHQEDQGVHJPHQWVWRVKRZRQWKHSRVLWLRQ
LQGLFDWRUV7KH:(8VXVHDLUSODQHZHLJKWFHQWHURI
JUDYLW\SRVLWLRQDQGHQJLQHWKUXVWUDWLQJWRFDOFXODWH
WKHJUHHQEDQGGLVSOD\7KH:(8VXVHDQRXWSXWIURP
+<',0ZKLFKUHFHLYHDQLQSXWIURPWKHQRVHJHDU
SUHVVXUHWUDQVGXFHU7KHFDOFXODWHGVLJQDOVWKHQJR
IURPWKH:(8VWRWKH$,06ZKLFKVHOHFWVDQGVKRZVWKH
JUHHQEDQGRQWKHVWDELOL]HUSRVLWLRQLQGLFDWRUV

67$%,/,=(5326,7,21 $&( 3)&

02'8/(
126('1

)/,*+7&21752/6
$5,1&%86

$,06&$%,1(7 6
7
$
%
126(83
6<67(06$5,1&
%86
67$%,/,=(5
126(*($5 326,7,21
35(6685( ,1',&$725
75$16'8&(5
+<',0 :(8
+25,=217$/67$%,/,=(5326,7,21,1',&$7,21*(1(5$/'(6&5,37,21

3)&6,1',&$7,216)/,*+7&21752/66<1237,&',63/$<
*HQHUDO 2WKHU6\VWHP,QIRUPDWLRQ
7KHIOLJKWFRQWUROVV\QRSWLFGLVSOD\JLYHVWKHIOLJKW $WWKHERWWRPRIWKHV\QRSWLFGLVSOD\LQGLYLGXDO
FUHZDJUDSKLFDORYHUYLHZRIWKHIOLJKWFRQWUROV\VWHP LQGLFDWRUVVKRZWKHFRQGLWLRQRI
7KHGLVSOD\LQFOXGHVLQGLYLGXDOSRVLWLRQVDQGIDLOXUHV
IRUHDFKIOLJKWFRQWUROVXUIDFH 7KHK\GUDXOLFSRZHUVXSSO\V\VWHPV
7KH3)&6PRGHRIRSHUDWLRQ
1RUPDO&RQGLWLRQV 7KH$&(RSHUDWLRQ
8QGHUQRUPDOFRQGLWLRQVWKHLQGLFDWLRQVDUHZKLWH7KH 7KH3)&6PRGHFRQGLWLRQVKRZVLQJUHHQZKHQLQQRUPDO
SRLQWHURQWKHODEHOHGVFDOHVVKRZVWKHSRVLWLRQRIWKH PRGH,QVHFRQGDU\RUGLUHFWPRGHWKHLQGLFDWLRQVKRZV
FRQWUROVXUIDFHV LQDPEHU
7KHVSRLOHUSRVLWLRQLQGLFDWRUVILOOZKLWHIURPWKH 7KHFRQGLWLRQRIWKHK\GUDXOLFSRZHUVXSSO\V\VWHPVRU
ERWWRPXS WKH$&(VVKRZVRQO\ZKHQWKHUHLVDIDLOXUHRIRQHRI
WKHV\VWHPVRU$&(7KHLQGLFDWRUIRUWKHIDLOHGV\VWHP
7KHVWDELOL]HUDQGWKHUXGGHUWULPLQGLFDWRUVVKRZWKH RU$&(LVDPEHU7KHRWKHUVDUHJUHHQ
VWDELOL]HUDQGUXGGHUSRVLWLRQLQGHJUHHV7KH
GLUHFWLRQRIUXGGHUWULPLVQH[WWRWKHLQGLFDWRU
'HIHFWLYH&RQGLWLRQV
:KHQDVXUIDFHGRHVQRWRSHUDWHDGHIHFWLYHFRQGLWLRQ
LQGLFDWRUUHSODFHVWKHVFDOHDQGSRLQWHURUWKHPRYLQJ
EDQG7KHFRORURIWKLVLQGLFDWRULVDPEHU
8QNQRZQ&RQGLWLRQV
:KHQWKHVWDWXVRIDFRQWUROVXUIDFHLVXQNQRZQWKH
SRLQWHUGRHVQRWVKRZRQWKHVFDOH,QWKHFDVHRIWKH
VSRLOHUVWKHUHLVQRPRYLQJEDQG

1250$/632,/(5 1250$/632,/(5
326,7,21 326,7,21
'()(&7,9(632,/(5
632,/(56
'()(&7,9(
632,/(5
81.12:1632,/(5
&21',7,21 81.12:1632,/(5
81.12:1$,/(521 &21',7,21
326,7,21
/$,/ /)/351 5)/351 5$,/
1250$/)/$3(521 1250$/$,/(521
326,7,21 326,7,21
'()(&7,9( '()(&7,9()/$3(521
67$%,/,=(5 67$% 58''(575,0
/
'()(&7,9( 58''(575,0
(/(9$725 326,7,21$1'
',5(&7,21
3)&602'( /(/(9 5(/(9

58''(5
&21',7,21 1250$/(/(9$725
+<'5$8/,&6 )/7&75/02'( $&(6 326,7,21
+<'5$8/,&32:(5
6833/<&21',7,21 / & 5 6(&21'$5< / / & 5
1250$/58''(5
326,7,21
$&(6&21',7,21
3)&6,1',&$7,216)/,*+7&21752/66<1237,&',63/$<

3)&6,1',&$7,2160$,17(1$1&(3$*(&21752/6$1'9$5,$%/(6
7+,63$*(,17(17,21$//</()7%/$1.

3)&6,1',&$7,2160$,17(1$1&(3$*(&21752/6$1'9$5,$%/(6
*HQHUDO 'LUHFWO\EHORZWKHSDJHVKRZVWKHFROXPQZKHHODQG
SHGDOSRVLWLRQIRUWKHFDSWDLQDQGWKHILUVWRIILFHU
7KHUHDUHWKUHH3)&6PDLQWHQDQFHSDJHV3DJHRQH FRQWUROV7KHSRVLWLRQVKRZVWKHGLVSODFHPHQWLQ
FRQWDLQVGDWDIRUWKHFRQWUROLQSXWVDQGYDULDEOHV LQFKHVRIHDFK/9'7
0DLQWHQDQFHSHUVRQQHOXVHWKHPDLQWHQDQFHSDJHVWRGR 7KHSDJHWKHQVKRZVWKHFROXPQDQGZKHHOIRUFHIRUWKH
PDLQWHQDQFHIXQFWLRQVVXFKDVULJJLQJRUGRDFKHFNRI FDSWDLQDQGWKHILUVWRIILFHUFRQWUROV7KHLQGLFDWLRQ
WKHGLVFUHWHLQSXWVDQGRXWSXWVRIWKH3)&6FRPSRQHQWV VKRZVWKHIRUFHLQOE
7KHVHDUHWKHWKUHHGLIIHUHQWGLVSOD\PRGHV 7KHSDJHWKHQVKRZVWKHFROXPQDQGZKHHOIRUFHIRUWKH
FDSWDLQDQGWKHILUVWRIILFHUFRQWUROV2WKHUIRUFH
5HDOWLPHPRGH WUDQVGXFHUVVHQGFROXPQZKHHODQGUXGGHUIRUFH
0DQXDOHYHQWPRGH VLJQDOVWRWKHIOLJKWGDWDUHFRUGHU7KHLQGLFDWLRQ
$XWRHYHQWPRGH VKRZVWKHIRUFHLQOE
7KHZRUG0$18$/RU$872DWWKHWRSRIWKHSDJH 7KHVSHHGEUDNHOHYHUSRVLWLRQLVLQGHJUHHVRI59'7
LGHQWLILHVWKHPDQXDOHYHQWRUWKHDXWRHYHQWSDJH7KH URWDWLRQIRUHDFKRIWKHIRXU59'7V
PHVVDJHWKDWFDXVHGWKHDXWRHYHQWLVDWWKHERWWRP
OHIWRIWKHSDJH7KHWLPHRIWKHHYHQWLVDWWKHERWWRP 7KHUXGGHUWULPDQGHOHYDWRUIHHOVKRZWKHDFWXDWRU
ULJKW H[WHQVLRQLQLQFKHV5XGGHUWULPSRVLWLRQUHIHUVWR
WKHUXGGHUWULPDFWXDWRUSRVLWLRQ59'73RVLWLRQ
9DULDEOHVDQG&RQWUROV UHIHUVWRWKHUXGGHUWULPSRVLWLRQWUDQVGXFHU(OHYDWRU
IHHOSRVLWLRQUHIHUVWRWKHOHIWIHHODFWXDWRU
7KHWRSRIWKHSDJHVKRZV SRVLWLRQ3RVLWLRQUHIHUVWRWKHULJKWIHHODFWXDWRU
5ROOUDWHLQGHJUHHVSHUVHFRQG 7KHJXVWVXSSUHVVLRQGLIIHUHQWLDOSUHVVXUHVKRZVLQ
<DZUDWHLQGHJUHHVSHUVHFRQG SVLG7KHPRGDOVXSSUHVVLRQVKRZVLQXQLWVRI
$OWLWXGHLQIHHW JUDYLWDWLRQDODFFHOHUDWLRQ J
5ROODQJOHLQGHJUHHV
$QJOHRIDWWDFNLQGHJUHHV $Q;VKRZVQH[WWRWKHLQGLFDWLRQLIWKHSRVLWLRQ
&$6LQNQRWV IRUFHRUSUHVVXUHWUDQVGXFHUVLJQDOLVLQYDOLG
$',58SLWFKUDWHLQGHJUHHVSHUVHFRQG
$&(SLWFKUDWHLQGHJUHHVSHUVHFRQGIRUHDFK$&(

3)&6,1',&$7,2160$,17(1$1&(3$*(&21752/6$1'9$5,$%/(6
7KHORZHUSDUWRIWKHSDJHVKRZVWKH3)&6PRGHRI
RSHUDWLRQDQGWKHDXWRSLORWHQJDJHPHQWVWDWXV8SWR
WKUHHSURWHFWLRQPRGHDFWLYLW\PHVVDJHVFDQVKRZDWWKH
ORZHUULJKWRIWKHSDJH7KHVHPHVVDJHVRQO\VKRZLI
WKH\DUHDFWLYH7KH\VKRZLQWKLVSULRULW\RUGHU
7$&
6WDOOSURWHFWLRQ
%DQNDQJOHSURWHFWLRQ
2YHUVSHHGSURWHFWLRQ
)ODUHFRPSHQVDWLRQ
7KH1250$/RU6(&21'$5<PHVVDJHVVKRZLIWKH3)&LVLQ
WKHQRUPDORUVHFRQGDU\PRGH:KHQWKH3)&6LVLQ
GLUHFWPRGHWKH3)&PRGHVKRZV6(&21'$5<
,QDGGLWLRQWR$',58DQG$&(LQWHUQDOSLWFKUDWHSLWFK
UDWHDOVRVKRZVIURPH[WHUQDOSLWFKUDWHVHQVRUV

)/,*+7&21752/ $8723*
52//5$7( <$:5$7( $/7

52//$1*/( $1*/(2)$77$&. &$6
3,7&+5$7( / / & 5
$',58 $&(,17;'&5
(;7;'&5
&$37 )2
&2/801 :+((/ 3('$/ &2/801 :+((/ 3('$/
326

)25&(

)'5
63'%5. 58' (/(9$725 68335(66

+$1'/( 75,0 )((/ *867 02'$/
326 835 /
/:5 5

3)&02'( $8723,/27 352702'($&7,9,7<
1250$/ (1*$*(' 29(563(('3527
67$%,/,=(5 '$7( -$1 87&
3)&6,1',&$7,2160$,17(1$1&(3$*(&21752/6$1'9$5,$%/(6

3)&6,1',&$7,2160$,17(1$1&(3$*(685)$&(326,7,21
*HQHUDO 'LIIHUHQWLDO3UHVVXUH,QGLFDWLRQ
7KHVHFRQG3)&6PDLQWHQDQFHSDJHVKRZVVXUIDFHSRVLWLRQ 7KHIODSHURQ3&8VDUHXQEDODQFHGDFWXDWRUV7KH
GDWDDQGDFWXDWRUK\GUDXOLFGDWD GLIIHUHQWLDOSUHVVXUHLQWKH3&8LVLQSURSRUWLRQWR
WKHIRUFHLQSRXQGV7KLVIRUFHFKDQJHVLQWRDYROWDJH
7KHJUDSKLFVKRZVWKHPDLQWHQDQFHSDJHLQDQDXWRHYHQW LQGLFDWLRQDQGVKRZVRQWKHSDJHDV3&8)25&(
PRGH$VWDELOL]HUIDXOWFDXVHGWKHDXWRHYHQW
7KHUXGGHUDQGHOHYDWRUVVKRZ'(/7$35(66WKDWLVWKH
+\GUDXOLF6\VWHP3UHVVXUH GLIIHUHQWLDOSUHVVXUHDFURVVWKH3&8DFWXDWRUSLVWRQ
7KLVSUHVVXUHLVLQSVLQRWIRUFH
7KHK\GUDXOLFSUHVVXUHIRUHDFKRIWKHV\VWHPVVKRZV
LQSVL )DLOXUH,QGLFDWLRQV
,IDK\GUDXOLFV\VWHPVLJQDOLVLQYDOLGWKHILHOGLV :KHQD3&8LVQRWLQRSHUDWLRQDQDPEHU6VKRZV
EODQN DGMDFHQWWRWKHVXUIDFHSRVLWLRQLQGLFDWLRQ
6XUIDFH3RVLWLRQ ,ID3&8SRVLWLRQVLJQDOLVLQYDOLGDQDPEHU;VKRZV
DGMDFHQWWRWKHVXUIDFHSRVLWLRQLQGLFDWLRQRUDGMDFHQW
7KHVXUIDFHSRVLWLRQLVLQLQFKHVRIGLVSODFHPHQWRI WRWKH6LIWKH3&8LVDOVRQRWLQRSHUDWLRQ
WKH/9'7IRUHDFK3&86XUIDFHSRVLWLRQGDWDVKRZVIRU
:KHQWKHVWDELOL]HUSRVLWLRQVLJQDOLVLQYDOLGDQ
6SRLOHUV DPEHU;VKRZVDGMDFHQWWRWKHVWDELOL]HUSRVLWLRQ
)ODSHURQV
$LOHURQV $QDPEHU65RU6&VKRZVDGMDFHQWWRWKHVWDELOL]HU
5XGGHU SRVLWLRQLQGLFDWLRQLIWKHULJKWRUFHQWHU67&0LVQRW
(OHYDWRUV LQRSHUDWLRQ
7KHVWDELOL]HUSRVLWLRQLVLQGHJUHHVRIURWDWLRQRI
WKH59'7IRUHDFKVWDELOL]HUSRVLWLRQPRGXOH

)/,*+7&21752/ $8723*
6+2:
3*0(18
632,/(5
6 326,7,21 6

6; +<'35(66 6;
/
6 &
5
; ;
)/$3(521
6; 326,7,21
3&8)25&(
$,/(521
326,7,21 6;
58''(5
326,7,21 '(/7$35(66
835
0,' 6; 6;
/:5
(/(9$725 67$% (/(9$725
326,7,21 '(/7$35(66 326,7,21 326,7,21 '(/7$35(66
/ ; 65
6; & 6&
6;
5
67$%,/,=(5 '$7( -$1 87&
3)&6,1',&$7,2160$,17(1$1&(3$*(685)$&(326,7,21

3)&6,1',&$7,2160$,17(1$1&(3$*($1$/2*',6&5(7(6
7+,63$*(,17(17,21$//</()7%/$1.

3)&6,1',&$7,2160$,17(1$1&(3$*($1$/2*',6&5(7(6
*HQHUDO 7KHLQGLFDWLRQIRUWKHUXGGHUWULPDUPHGVLJQDOLVLQ
WKH5FROXPQ7KHLQGLFDWLRQVKRZVDV<(6LIDUPHGDQG
7KHWKLUG3)&6PDLQWHQDQFHSDJHVKRZVWKHVWDWXVRI 12LIQRWDUPHG,IWKHDUPHGVLJQDOLVLQYDOLGWKH
DQDORJGLVFUHWHV1RUPDOLQGLFDWLRQVDUHZKLWH)DLOXUH LQGLFDWLRQVKRZV)$8/7LQDPEHU
LQGLFDWLRQVDUHDPEHU
7KHUXGGHUWULPUDWHVLJQDOLVLQWKH5FROXPQ7KH
7KHJUDSKLFVKRZVWKHPDLQWHQDQFHSDJHLQDXWRHYHQW LQGLFDWLRQVKRZV)$67RU6/2:GHSHQGHQWRQWKH
PRGHFDXVHGE\DVWDELOL]HUIDXOW FRQGLWLRQ,IWKHWULPUDWHVLJQDOLVLQYDOLGWKH
LQGLFDWLRQVKRZV)$8/7LQDPEHU
$&('LVFUHWH,QGLFDWLRQV
7KHUXGGHUWULPGLUHFWLRQLVLQWKH/FROXPQ7KH
)RUHDFKRIWKHIRXU$&(VWKHSDJHVKRZVWKHVWDWXVRI LQGLFDWLRQVKRZV/()7RU5,*+7GHSHQGHQWRQWKHUXGGHU
WKHGLVFUHWHVLJQDOV GLUHFWLRQFRPPDQG7KHLQGLFDWLRQVKRZV12LIWKHUHLV
QRUXGGHUWULPFRPPDQG7KHLQGLFDWLRQVKRZV/ 5LQ
7KH)6(8WUDLOLQJHGJHDQGOHDGLQJHGJHUHWUDFWHG DPEHULIWKHWULPFRPPDQGLVIRUERWKGLUHFWLRQVDWWKH
VLJQDOVKRZVDVD<(6RU12,IWKHVLJQDOLV VDPHWLPH7KHLQGLFDWLRQVKRZV)$8/7LQDPEHULIWKH
GHIHFWLYHWKHILHOGEHFRPHVEODQN WULPVLJQDOLVQRWYDOLG
7KH3)&GLVFRQQHFWVZLWFKSRVLWLRQVWDWXVVKRZVDV$872 7KHUXGGHUWULPEUDNHUHOHDVHGLQGLFDWLRQLVLQWKH5
RU',6&,IWKHVZLWFKVLJQDOLVLQYDOLG23(1RU FROXPQ7KHLQGLFDWLRQVKRZV<(6ZKHQWKHEUDNHLV
&/26('VKRZVLQDPEHULIWKHFRQWDFWVDUHGHIHFWLYHLQ UHOHDVHGRU12ZKHQLWLVQRW,IWKHVLJQDOLVQRW
WKHRSHQRUFORVHGSRVLWLRQ,IWKHVZLWFKLVGHIHFWLYH YDOLGWKHILHOGLVEODQN
DQGGRHVQRWVXSSO\DVLJQDOWKHILHOGLVEODQN
7KHSLWFKWULPDUPDQGFRQWUROVLJQDOLQGLFDWLRQVVKRZ
7KH$&(PRGHRIRSHUDWLRQVKRZVDV1250$/RU',5(&7,I LQWKHVHFROXPQV
WKH$&(PRGHVLJQDOLVLQYDOLGWKHLQGLFDWLRQVKRZV
)$8/7LQDPEHU /IRUFDSWDLQDUP
&IRUFDSWDLQFRQWURO
7KHLQGLFDWLRQIRUWKHUXGGHUPDQXDOWULPFDQFHOVZLWFK /IRUILUVWRIILFHUDUP
VLJQDOLVLQWKH/FROXPQ7KHLQGLFDWLRQVKRZVDV<(6 5IRUILUVWRIILFHUFRQWURO
LIWKHVZLWFKLVSXVKHGRU12LIUHOHDVHG,IWKH
VZLWFKVLJQDOLVLQYDOLGWKHLQGLFDWLRQVKRZV)$8/7LQ 7KHLQGLFDWLRQVKRZV83RU'2:1GHSHQGLQJRQZKLFK
DPEHU GLUHFWLRQWKHSLORWPRYHVWKHWULPVZLWFKHV7KH

3)&6,1',&$7,2160$,17(1$1&(3$*($1$/2*',6&5(7(6
LQGLFDWLRQVKRZV12LIWKHSLORWGRHVQRWPRYHWKHWULP $,06'LVFUHWH,QGLFDWLRQV
VZLWFKHV7KHLQGLFDWLRQVKRZV83 '1LQDPEHULIWKH
VZLWFKHVVLJQDOERWKXSDQGGRZQFRPPDQGV,IWKH 7KH$,06PRQLWRUVWKHDOWHUQDWHSLWFKWULPOHYHUDUP
VLJQDOLVQRWYDOLGWKHILHOGLVEODQN DQGFRQWUROVZLWFKHVIRUDFWLYLW\DQGGLUHFWLRQ7KH
LQGLFDWLRQLQWKH$&7,9(FROXPQVVKRZV<(6ZKHQWKH
7KHLQGLFDWLRQIRUWKH67&0EUDNHUHOHDVHSUHVVXUHLV SLORWPDNHVDOHYHUFRPPDQGRU12ZKHQWKHUHLVQR
LQWKH&DQG5FROXPQV7KHLQGLFDWLRQVKRZV<(6LIWKH FRPPDQG,IWKHVLJQDOLVQRWYDOLGWKHLQGLFDWLRQ
EUDNHLVUHOHDVHGRU12LILWLVQRW,IWKHVLJQDOLV VKRZV)$8/7LQDPEHU
QRWYDOLGWKHILHOGLVEODQN
7KHLQGLFDWLRQLQWKH',5(&7,21FROXPQVKRZV83RU'2:1
7KHLQGLFDWLRQIRUWKH67&0K\GUDXOLFVKXWRIIUHOD\ GHSHQGHQWRQWKHGLUHFWLRQRIWKHDOWHUQDWHSLWFKWULP
SRZHULVLQWKH&DQG5FROXPQV7KHLQGLFDWLRQVKRZV FRPPDQG,IWKHVLJQDOLVQRWYDOLGWKHLQGLFDWLRQ
<(6LIWKHUHOD\KDVSRZHURU12LILWGRHVQRW,IWKH VKRZV)$8/7LQDPEHU
VLJQDOLVQRWYDOLGWKHILHOGLVEODQN
7KHHOHYDWRUIHHOHQJDJHGVLJQDOLVLQWKH/DQG&
FROXPQV7KHLQGLFDWLRQVKRZV<(6RU12GHSHQGLQJRQ
WKHHQJDJHGVWDWXVRIWKHHOHYDWRUIHHODFWXDWRU,I
WKHVLJQDOLVQRWYDOLGWKHILHOGLVEODQN
7KHDXWRVSHHGEUDNHOLPLWVZLWFKVLJQDOLVRQWKH/
FROXPQ7KHLQGLFDWLRQVKRZV<(6LIWKHDXWRVSHHGEUDNH
DFWXDWRULVLQWKHUHWUDFWHGSRVLWLRQ,WVKRZV12LI
WKHDFWXDWRULVQRWUHWUDFWHG,IWKHVLJQDOLVQRW
YDOLGWKHILHOGLVEODQN
7KH7$&VZLWFKSRVLWLRQVLJQDOVKRZVLQWKH&FROXPQ
7KHVLJQDOFDQEH2))RU$872,IWKHVLJQDOLVQRW
YDOLGWKHILHOGEHFRPHVEODQN

)/,*+7&21752/ $8723*
6+2:
3*0(18
$&($1$/2*',6&5(7(6 / / & 5
)6(87( /(5(75$&7(' <(6 <(6 <(6 <(6
)6(87( /(5(75$&7(' 12 12 12 12
3)&',6&211(&76:,7&+ $872 $872 $872 $872
$&(02'( ',5(&7 1250 1250 1250
58'07&6:,7&+386+(' <(6
58'75,0$50(' <(6
58'75,05$7( )$67
58'75,0',5(&7,21 /()7
58'75,0%5.5(/($6(' <(6
&$373,7&+75,0$50 83
&$373,7&+75,0&75/ 83
)23,7&+75,0$50 12
)23,7&+75,0&75/ 12
67&0%5.5(/($6(35(66 <(6 <(6
67&0+<'625/<32:(5 <(6 <(6
(/(9)((/(1*$*(' <(6 <(6
63'%5.$&755(75$&7(' <(6
7$&6:,7&+326,7,21 $872
/ 5
$,06$1$/2*',6&5(7(6 $&7,9( ',5(&7,21 $&7,9( ',5(&7,21
$/713,7&+75,0/(9(5$50 <(6 83 <(6 83
$/713,7&+75,0/(9(5&75/ <(6 83 <(6 83
67$%,/,=(5 '$7( -$1 87&
3)&6,1',&$7,2160$,17(1$1&(3$*($1$/2*',6&5(7(6

+,*+/,)7&21752/,1752'8&7,21
*HQHUDO (,&$6 HQJLQHLQGLFDWLRQDQGFUHZDOHUWLQJ
V\VWHP
7KHKLJKOLIWFRQWUROV\VWHP +/&6 PDNHVWKHWDNHRII )0&6 IOLJKWPDQDJHPHQWFRPSXWLQJV\VWHP
DQGODQGLQJSHUIRUPDQFHRIWKHDLUSODQHEHWWHU7KH )6(8 IODSVODWHOHFWURQLFVXQLW
+/&6LQFOXGHVWKHWUDLOLQJHGJHIODSVDQGWKHOHDGLQJ
+/&6 KLJKOLIWFRQWUROV\VWHP
HGJHVODWV
+<',0 K\GUDXOLFLQWHUIDFHPRGXOH
7UDLOLQJ(GJH)ODSV /9'7 OLQHDUYDULDEOHGLIIHUHQWLDOWUDQVIRUPHU
0$7 PDLQWHQDQFHDFFHVVWHUPLQDO
'XULQJWDNHRIIWKHWUDLOLQJHGJHIODSVLQFUHDVHWKH 3'8 SRZHUGULYHXQLW
OLIWRIWKHZLQJ'XULQJODQGLQJWKHIODSVLQFUHDVH 3)&6 SULPDU\IOLJKWFRQWUROV\VWHP
WKHOLIWDQGGUDJ7KHIODSVDUHQRWXVHGGXULQJ
36(8 SUR[LPLW\VZLWFKHOHFWURQLFXQLW
FUXLVH7KHUHLVRQHGRXEOHVORWWHGLQERDUGIODSDQG
RQHVLQJOHVORWWHGRXWERDUGIODSRQHDFKZLQJ 59'7 URWDU\YDULDEOHGLIIHUHQWLDOWUDQVIRUPHU
6$$58 VHFRQGDU\DWWLWXGHDLUGDWDUHIHUHQFH
/HDGLQJ(GJH6ODWVDQG.UXHJHU)ODSV XQLW
VHF VHFRQGDU\
'XULQJWDNHRIIDQGODQGLQJWKHOHDGLQJHGJHVODWVDQG :(8 ZDUQLQJHOHFWURQLFXQLW
.UXHJHUIODSVLQFUHDVHWKHOLIWRIWKHZLQJ7KHVH :2: ZHLJKWRQZKHHOV
VXUIDFHVDUHQRWXVHGGXULQJFUXLVH7KHUHDUHVHYHQ
VODWVDQGRQH.UXHJHUIODSRQHDFKZLQJ
$EEUHYLDWLRQVDQG$FURQ\PV
$&( DFWXDWRUFRQWUROHOHFWURQLFV
$&06 DLUSODQHFRQGLWLRQPRQLWRULQJV\VWHP
$',58 DLUGDWDLQHUWLDOUHIHUHQFHXQLW
$,06 DLUSODQHLQIRUPDWLRQPDQDJHPHQWV\VWHP
DOWQ DOWHUQDWH
$5,1& $HURQDXWLFDO5DGLR,QF
&0&6 FHQWUDOPDLQWHQDQFHFRPSXWLQJV\VWHP

/($',1* 75$,/,1*
('*(6/$76 )/$36
('*()/$36
.58(*(5 &58,6(
)/$3
6/$76
/($',1*
('*(6/$76 75$,/,1*
('*()/$36 7$.(2))
/$1',1*
/($',1* /($',1*
('*(6/$76 .58(*(5 ('*(6/$76
)/$3
+,*+/,)7&21752/,1752'8&7,21

+,*+/,)7&21752/*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

+,*+/,)7&21752/*(1(5$/'(6&5,37,21
*HQHUDO 7KH)6(8VVHQGWKHIODSDQGVODWFRPPDQGVWRWKHIODS
DQGVODWSULPDU\FRQWUROYDOYHV7KHVHYDOYHVVXSSO\
7KH+/&6FRQWUROVWKHRSHUDWLRQRIWKH K\GUDXOLFSUHVVXUHWRWKHIODSDQGVODWSRZHUGULYH
XQLWV 3'8V +\GUDXOLFPRWRUVLQWKH3'8VWKHQPRYH
7UDLOLQJHGJHIODSV WKHIODSDQGVODWPHFKDQLVPV
/HDGLQJHGJHVODWV
.UXHJHUIODSV 7KHIODSVODWSULRULW\YDOYHFRQWUROVWKHDPRXQWRI
K\GUDXOLFIORZWRWKHIODSDQGVODWSULPDU\FRQWURO
7KH+/&6KDVWKHVHWKUHHPRGHVRIRSHUDWLRQ YDOYHV7KHIODSVODWSULRULW\YDOYHJLYHVSULRULW\RI
K\GUDXOLFSRZHUWRWKHSULPDU\IOLJKWFRQWUROV\VWHP
3ULPDU\ 3)&6 RYHUWKH+/&6
6HFRQGDU\
$OWHUQDWH $VWKHIODSVDQGVODWVPRYHSRVLWLRQVHQVRUVVHQGD
SRVLWLRQIHHGEDFNVLJQDOWRWKH)6(8V7KH)6(8VVWRS
,QWKHSULPDU\PRGHK\GUDXOLFSRZHUPRYHVWKHIODSV WKHIODSDQGVODWFRPPDQGVZKHQWKHSRVLWLRQIHHGEDFN
DQGVODWV,QWKHVHFRQGDU\DQGDOWHUQDWHPRGHV VLJQDOVHTXDOWKHFRPPDQGHGSRVLWLRQ
HOHFWULFDOSRZHUPRYHVWKHIODSVDQGVODWV
7KHIODSDQGVODWVNHZVHQVRUVPRQLWRUWKHDOLJQPHQWRI
,QWKHSULPDU\DQGVHFRQGDU\PRGHVWKHFRQWUROLV WKHIODSVDQGVODWV,IWKHIODSVRUVODWVDUHRXWRI
FORVHGORRS&ORVHGORRSFRQWUROVWRSVWKHFRPPDQGZKHQ DOLJQPHQWWKHVNHZVHQVRUVVHQGDVLJQDOWRWKH)6(8V
DIHHGEDFNVLJQDOHTXDOVWKHFRPPDQG,QWKHDOWHUQDWH 7KH)6(8VWKHQSURKLELWPRYHPHQWRIWKHIDLOHGV\VWHP
PRGHWKHFRQWUROLVRSHQORRS2SHQORRSFRQWUROVWRSV LQWKHSULPDU\DQGVHFRQGDU\PRGHV
WKHFRPPDQGVRQO\ZKHQ\RXVWRSWKHLQSXWRUZKHQWKH
VXUIDFHVDUHDWDOLPLW 7KHSULPDU\PRGHDOVRXVHVWKHDXWRVODWSULRULW\YDOYH
LIWKHDLUSODQHDSSURDFKHVDVWDOOFRQGLWLRQ7KLV
3ULPDU\0RGH YDOYHJLYHVWKHVODWVSULRULW\RIWKHK\GUDXOLFSRZHU
RYHUWKHPDLQODQGLQJJHDUV\VWHPGXULQJDQDXWRVODW
7KHIODSOHYHUSRVLWLRQVHQVRUVVHQGLQSXWVLJQDOVWR FRPPDQG
WKHIODSVODWHOHFWURQLFXQLWV )6(8V 7KH)6(8VXVH
WKHIODSOHYHUSRVLWLRQWRFDOFXODWHWKHIODSDQGVODW 6HFRQGDU\0RGH
FRPPDQGV7KH)6(8VDOVRUHFHLYHGDWDIURPWKHV\VWHPV
$5,1&EXVHV ,QWKHVHFRQGDU\PRGHWKH)6(8VUHFHLYHLQSXWVLJQDOV
IURPWKHIODSOHYHUSRVLWLRQVHQVRU7KH)6(8VWKHQ

+,*+/,)7&21752/*(1(5$/'(6&5,37,21
HQHUJL]HVHFRQGDU\DOWHUQDWHFRQWUROUHOD\V7KHVH FRQWUROHOHFWULFDOSRZHUWRWKHIODSDQGVODWHOHFWULF
UHOD\VHQHUJL]HE\SDVVVROHQRLGVLQWKHSULPDU\FRQWURO PRWRUVRQWKH3'8V7KHOLPLWVZLWFKHVUHPRYH
YDOYHVWRVWRSK\GUDXOLFSRZHUWRWKHK\GUDXOLFPRWRUV HOHFWULFDOSRZHUIURPWKHVHUHOD\VZKHQWKHIODSVDQG
7KHVHUHOD\VDOVRFRQWUROHOHFWULFDOSRZHUWRWKHIODS VODWVDUHDWWKHLUOLPLWV
DQGVODWHOHFWULFPRWRUVLQWKH3'8V7KHHOHFWULF
PRWRUVWKHQPRYHWKHIODSDQGVODWPHFKDQLVPV 7KHHOHFWULFPRWRUVWKHQPRYHWKHIODSDQGVODW
PHFKDQLVPV7KHIODSVDQGVODWVPRYHXQWLOWKHSLORW
$VWKHIODSVDQGVODWVPRYHSRVLWLRQVHQVRUVVHQGD PRYHVWKHDOWHUQDWHIODSVVHOHFWRUWR2))RUWKHIODSV
SRVLWLRQIHHGEDFNVLJQDOWRWKH)6(8V7KH)6(8V DQGVODWVDUHDWWKHLUOLPLWV
FRPPDQGWKHUHOD\VWRVWRSWKHHOHFWULFPRWRUVZKHQWKH
IODSVDQGVODWVDUHDWWKHFRPPDQGHGSRVLWLRQ 7KHDOWHUQDWHPRGHFRQWUROGRHVQRWXVHWKHIODSDQG
VODWSRVLWLRQVHQVRUVRUVNHZVHQVRUV%XWWKH)6(8V
7KHVHFRQGDU\PRGHDOVRXVHVWKHIODSDQGVODWVNHZ FRQWLQXHWRUHFHLYHVLJQDOVIURPWKHVHVHQVRUVIRU
VHQVRUV,IWKHIODSVDUHRXWRIDOLJQPHQWWKH)6(8V (,&$6PHVVDJHVDQGSRVLWLRQLQGLFDWLRQ
SURKLELWPRYHPHQWRIWKHIODSVLQWKHVHFRQGDU\PRGH
7KLVLVDOVRWUXHIRUWKHVODWV
$OWHUQDWH0RGH
7KHSLORWVPDQXDOO\FRQWUROWKHDOWHUQDWHPRGHZLWKWKH
VZLWFKHVRQWKHDOWHUQDWHIODSVSDQHO7KHDUPVZLWFK
RQWKLVSDQHOVHQGVDGLVFUHWHWRWKH)6(8VWR
GLVHQJDJHWKHSULPDU\DQGVHFRQGDU\PRGHV7KLVVZLWFK
DOVRHQHUJL]HVWZRRIWKHVHFRQGDU\DOWHUQDWHFRQWURO
UHOD\V7KHVHWZRUHOD\VHQHUJL]HE\SDVVVROHQRLGVLQ
WKHSULPDU\FRQWUROYDOYHVWRVWRSK\GUDXOLFSRZHUWR
WKHK\GUDXOLFPRWRUV7KHSULPDU\FRQWUROYDOYHVDOVR
FUHDWHDK\GUDXOLFORRSWRSHUPLWWKHK\GUDXOLFPRWRUV
WREHEDFNGULYHQ
7KHDOWHUQDWHIODSVVHOHFWRUVHQGVFRPPDQGVWKURXJK
OLPLWVZLWFKHVWRHQHUJL]HWKHRWKHU
VHFRQGDU\DOWHUQDWHFRQWUROUHOD\V7KHVHUHOD\V

6(&$/71
&21752/
5(/$<6 &(17(5+<'5$8/,&
6<67(0
/,0,7
6:,7&+(6
$8726/$7
$/7(51$7( 35,25,7< )/$36/$7
)/$363$1(/ 9$/9( 35,25,7<9$/9(
3'8
7<3,&$/
)/$3
83

)/$3/(9(5
326,7,21
6(1625

+<'5$8/,&
02725 (/(&75,&
7+,6$66(0%/<
&217$,16
35,0$5<&21752/9$/9(

(/(&75267$7,&
6(16,7,9(
02725
'(9,&(6
7<3,&$/
)6(8
)/$3/(9(5
)/$3$1'6/$7
326,7,216(16256
)/$366/$76
)/$3$1'6/$7
0(&+$1,&$/ 6.(:6(16256
&211(&7,21
+<'5$8/,& 6<67(06$5,1&
&211(&7,21 %86
+,*+/,)7&21752/*(1(5$/'(6&5,37,21

+,*+/,)7&21752/,17(5)$&(66<67(05('81'$1&<
7+,63$*(,17(17,21$//</()7%/$1.

+,*+/,)7&21752/,17(5)$&(66<67(05('81'$1&<
*HQHUDO )ODS/HYHU3RVLWLRQ6HQVRU
7KH+/&6KDVWZRLGHQWLFDOODQHVIRUWKHSULPDU\PRGH (DFKODQHXVHVWZRRIWKHIRXU59'7VLQWKHIODSOHYHU
DQGWKHVHFRQGDU\PRGH2QHODQHKDVFRQWURORIWKH SRVLWLRQVHQVRU
+/&67KHRWKHUODQHPRQLWRUVWKH+/&67KH)6(8V
DXWRPDWLFDOO\WUDQVIHUFRQWUROWRWKHRWKHUODQHDIWHU )ODSDQG6ODW3ULPDU\&RQWURO9DOYH6ROHQRLG&RLOV
DSRVWIOLJKWVHOIWHVWRIWKH)6(8VRUDIWHU
GLVHQJDJHPHQWIURPWKHDOWHUQDWHPRGH7KH)6(8VDOVR 7KHIODSDQGVODWSULPDU\FRQWUROYDOYHVKDYHGXDOFRLO
VZLWFKFRQWUROWRWKHRWKHUODQHLI VROHQRLGV(DFKODQHFRQWUROVRQHRIWKHFRLOVLQHDFK
VROHQRLG
$FRPSRQHQWIDLOVLQWKHFRQWUROODQH
7KHFRPPDQGDQGIHHGEDFNGLVDJUHH )ODSDQG6ODW3RVLWLRQ6HQVRUV
(DFKODQHKDVWKHVHFRPSRQHQWV (DFKZLQJKDVWZRIODSSRVLWLRQVHQVRUVDQGWZRVODW
SRVLWLRQVHQVRUV(DFKODQHXVHVRQHIODSSRVLWLRQ
$Q)6(8 VHQVRUDQGRQHVODWSRVLWLRQVHQVRUIURPHDFKZLQJ
7ZR59'7VLQWKHIODSOHYHUSRVLWLRQVHQVRU
)ODSSULPDU\FRQWUROYDOYHVROHQRLGFRLOV )ODSDQG6ODW6NHZ6HQVRUV
6ODWSULPDU\FRQWUROYDOYHVROHQRLGFRLOV
)ODSSRVLWLRQVHQVRUV 7KHUHDUHIRXUIODSVNHZVHQVRUVHDFKZLWKWZRFKDQQHOV
6ODWSRVLWLRQVHQVRUV DQGWKUHHSDLUVRIVODWVNHZVHQVRUVRQHDFKZLQJ2QH
)6(8UHFHLYHVLQSXWVIURPKDOIRIWKHVODWVNHZ
7KHIROORZLQJFRPSRQHQWVDUHQRWLQWKH+/&6ODQHV VHQVRUVDQGWKHRWKHU)6(8UHFHLYHVLQSXWVIURPWKH
RWKHUKDOI(DFK)6(8UHFHLYHVDQLQSXWIURPRQHIODS
7KHIODSDQGVODWVNHZVHQVRUV VNHZVHQVRUFKDQQHODWHDFKORFDWLRQ7KHRWKHU)6(8
7KHDXWRVODWSULRULW\YDOYHV UHFHLYHVDQLQSXWIURPWKHRWKHUFKDQQHODWHDFK
7KHVHFRQGDU\DOWHUQDWHFRQWUROUHOD\V ORFDWLRQ
)6(8V $XWRVODW3ULRULW\9DOYH
2QH)6(8LVLQHDFKODQH2QO\WKH)6(8LQWKHFRQWURO (LWKHU)6(8FDQFRQWUROWKHDXWRVODWSULRULW\YDOYHV
ODQHVHQGVWKHIODSDQGVODWFRPPDQGVWRWKHIODSDQG
VODWSULPDU\FRQWUROYDOYHV

+,*+/,)7&21752/,17(5)$&(66<67(05('81'$1&<
6HFRQGDU\$OWHUQDWH&RQWURO5HOD\V
(LWKHU)6(8FDQFRQWUROWKHVHFRQGDU\DOWHUQDWHFRQWURO
UHOD\V
)DXOW$QQXQFLDWLRQ
7KHVWDWXVPHVVDJH)/$36/$7&21752/VKRZVLI
$FRPSRQHQWIDLOVLQODQH
7KHFRPPDQGDQGIHHGEDFNGLVDJUHHLQODQH
7KHVDPHORJLFLVWUXHIRUWKH)/$36/$7&21752/
VWDWXVPHVVDJHLQODQH
7KHFDXWLRQPHVVDJH)/$36/$7&21752/VKRZVLIERWK
ODQHVIDLO

$ )/$3/(9(5 $
3,/27&200$1' 326,7,21 3,/27&200$1'
% 6(1625 %
62/ )/$335,0$5< 62/

)/$3&200$1' &2,/6 &21752/9$/9( &2,/6 )/$3&200$1'
6/$7&200$1' 62/ 6/$735,0$5< 62/ 6/$7&200$1'

&2,/6 &21752/9$/9( &2,/6
/ )/$3326,7,21 /
)/$3326,7,21 6(16256 )/$3326,7,21
5 5
/ 6/$7326,7,21 /
6/$7326,7,21 6(16256 6/$7326,7,21
5 5
/ )/$36.(: /
)/$36.(:6,*1$/6 6(16256 )/$36.(:6,*1$/6
5 5
/ 6/$76.(: /
6/$76.(:6,*1$/6 6(16256 6/$76.(:6,*1$/6
5 5
6(&21'$5<02'(&200$1'6 6(&21'$5<02'(&200$1'6
$1'35,0$5<02'(',6(1*$*( $1'35,0$5<02'(',6(1*$*(
$8726/$7&200$1' $8726/$7&200$1'
)6(8 )6(8
6(&$/71&21752/ $8726/$7
5(/$<6 35,25,7<9$/9(
/$1( /$1(
+,*+/,)7&21752/,17(5)$&(66<67(05('81'$1&<

+,*+/,)7&21752/6<67(06$5,1&%86(6,17(5)$&(6
7+,63$*(,17(17,21$//</()7%/$1.

+,*+/,)7&21752/6<67(06$5,1&%86(6,17(5)$&(6
*HQHUDO $,06,QWHUIDFH
7KHIODSVODWHOHFWURQLFXQLWV )6(8 FRQQHFWWKHKLJK 7KH)6(8VVXSSO\LQIRUPDWLRQWR$,06IRU

OLIWFRQWUROV\VWHP +/&6 WRRWKHUDLUSODQHV\VWHPV
WKURXJKWKHV\VWHPV$5,1&EXVHV7KH)6(8V 7KHIODSDQGVODWSRVLWLRQ
LQWHUIDFHZLWKWKHVHRWKHUV\VWHPV )ODSOHYHUSRVLWLRQ
7KHIODSVODWPDLQWHQDQFHSDJH
$LUSODQH,QIRUPDWLRQ0DQDJHPHQW6\VWHP $,06 $OHUWLQJVWDWXVPHVVDJHGDWD
6\VWHP&DUG)LOH 6&) 7KHFHQWUDOPDLQWHQDQFHFRPSXWLQJV\VWHP &0&6
:DUQLQJ(OHFWURQLFV8QLW :(8 7KHSULPDU\IOLJKWFRQWUROV\VWHP 3)&6
%XV3RZHU&RQWURO8QLW %3&8 SURWHFWLRQIXQFWLRQVJDLQVDQGGURRSORJLF
$LUVXSSO\FDELQSUHVVXUHFRQWUROOHU $6&3& )OLJKW'DWD5HFRUGHU )'5
(OHFWULFDO/RDG0DQDJHPHQW6\VWHP (/06 $XWRSLORWIOLJKWGLUHFWRUFRPSXWHU $)'&
3DVVHQJHUDGGUHVVFDELQLQWHUSKRQHFRQWUROOHU *URXQG3UR[LPLW\:DUQLQJ6\VWHP *3:6
3$&, $',56IRUDLUGDWDVFKHGXOHV
&DELQV\VWHPPDQDJHPHQWXQLW &608
(QJLQHGDWDLQWHUIDFHXQLW (',8 7KHDXWRSLORWIOLJKWGLUHFWRU $)'& JHWVIODSSRVLWLRQ
WRFRPSXWHDXWRSLORWFRQWUROODZJDLQV
)6(8,QWHUIDFH
*3:6XVHVIODSGDWDIURP$,06IRUWKHZLQGVKHDUDOHUW
7KH)6(8VFRQQHFWWRWKUHHRIWKHV\VWHPV$5,1& IXQFWLRQDQGIRUJURXQGSUR[LPLW\ZDUQLQJIXQFWLRQV
EXVHV)6(8WUDQVPLWVDQGUHFHLYHVGDWDRQWKHOHIW
DQGFHQWHUEXVHVWKURXJKVHSDUDWHFRQQHFWLRQV)6(8 7KH)6(8VUHFHLYHLQIRUPDWLRQIURP$,06IRU
UHFHLYHVGDWDWKURXJKWZRPRUHFRQQHFWLRQVIRU
UHGXQGDQF\ $LUGDWDIURPWKH$',58DQG6$$58
7KH$&(WHVWUHTXHVWWRKDYHWKH)6(8VVHWWKHLU
)6(8WUDQVPLWVDQGUHFHLYHVGDWDRQWKHULJKWDQG )ODSV5HWUDFWHGGLVFUHWHVWUXH
FHQWHUEXVHVWKURXJKVHSDUDWHFRQQHFWLRQV)6(8 )OLJKWSKDVHGDWD
UHFHLYHVGDWDWKURXJKWZRPRUHFRQQHFWLRQVIRU 0DLQWHQDQFHWHVWFRPPDQGV
UHGXQGDQF\ (QJLQHDERYHUXQ530

+,*+/,)7&21752/6<67(06$5,1&%86(6,17(5)$&(6
6\VWHPV&DUG)LOH,QWHUIDFH 7KH(',8XVHVIODSSRVLWLRQGDWDWRDGMXVWWKHHQJLQH
DSSURDFKLGOHVSHHG
7KHK\GUDXOLFLQWHUIDFHPRGXOH +<',0 FDUGVVXSSO\
K\GUDXOLFSUHVVXUHGDWDWRWKH)6(8V7KHFHQWHU
K\GUDXOLFLVRODWLRQV\VWHPFRPPDQGIURPWKH+<',0&/
FDUGGLVDEOHVWKHVODWVLQWKHSULPDU\PRGHWKLVLVDQ
DQDORJGLVFUHWHVLJQDO QRWVKRZQ
7KH)6(8VVHQGIODSDQGVODWPRWLRQFRPPDQGVWRWKH
+<',0FDUGV
7KHZHLJKWRQZKHHOV :2: FDUGVVXSSO\DLUJURXQGGDWD

WRWKH)6(8V
6\VWHPV,QWHUIDFH
7KH:(8VWUDQVPLWDQDXWRVODWHQDEOHVLJQDO7KLVLV
XVHGZLWKDLUVSHHGWRHQDEOHPDLQWHQDQFHIXQFWLRQDQG
%,7(PRGHVRQWKHJURXQG
(/06VHQGVFLUFXLWEUHDNHUDQGUHOD\SRVLWLRQV7KH
)6(8VJHQHUDWHIDXOWUHSRUWVIURPWKLVGDWD
7KHDLUVXSSO\FDELQSUHVVXUHFRQWUROOHUV $6&3& JHW

IODSGDWDDQGXVHLWDVDEDFNXSWR+<',0IRUDLUIORZ
UHTXLUHPHQWVWRWKH$'3V
7KHFDELQV\VWHPPDQDJHPHQWXQLW &608 DQGSDVVHQJHU

DGGUHVVFDELQLQWHUSKRQHFRQWUROOHU 3$&, XVHWKH
IODSOHYHUQRWUHWUDFWHGVLJQDOLQWKHIDVWHQVHDWEHOW
VLJQORJLFDQGIRUWKH3$YROXPH/DQGLQJJHDUDQG
DOWLWXGHGDWDDUHDOVRXVHGWRFRQWUROWKHVHIXQFWLRQV

$,06 6<67(06&$5' $6&3& (',8

&$%,1(7 ),/( :(8 %3&8 (/06 3$&, &608
6<67(06
$5,1&

%86(6
5
&
&
/
BBBBBBB
&$87,21 &$87,21
BBBBBBB
7+,6$66(0%/< 7+,6$66(0%/<
&217$,16 &217$,16
(/(&75267$7,& (/(&75267$7,&
6(16,7,9( 6(16,7,9(
'(9,&(6 '(9,&(6
)6(8 )6(8
+,*+/,)7&21752/6<67(06$5,1&%86(6,17(5)$&(6

+,*+/,)7&21752/,17(5)$&(6$1$/2*$1'',6&5(7(6,*1$/6
7+,63$*(,17(17,21$//</()7%/$1.

+,*+/,)7&21752/,17(5)$&(6$1$/2*$1'',6&5(7(6,*1$/6
*HQHUDO $OWHUQDWH)ODSV$UP6ZLWFK
7KHVHFRPSRQHQWVHOHFWULFDOO\FRQWUROWKHIODSVDQG 7KHDOWHUQDWHIODSVDUPVZLWFKVHQGVDGLVFUHWHWRWKH
VODWVLQWKHSULPDU\VHFRQGDU\DQGDOWHUQDWHPRGHV )6(8VWRGLVHQJDJHWKHSULPDU\DQGVHFRQGDU\PRGHV
7KLVVZLWFKDOVRFRQWUROVWZRUHOD\VZKLFKFRQWURO
)6(8V SRZHUWRDVROHQRLGLQWKHIODSDQGVODWSULPDU\
)ODSOHYHUSRVLWLRQVHQVRU FRQWUROYDOYHV
$OWHUQDWHIODSVDUPVZLWFK
$OWHUQDWHIODSVVHOHFWRU $OWHUQDWH)ODSV6HOHFWRU
)ODSDQGVODWSULPDU\FRQWUROYDOYHV
$XWRVODWSULRULW\YDOYH 7KHDOWHUQDWHIODSVVHOHFWRUFRQWUROVWKHJURXQGVIRU
6HFRQGDU\DOWHUQDWHFRQWUROUHOD\V IRXUUHOD\VZKLFKFRQWUROSRZHUWRWKHIODSDQGVODW
)ODSDQGVODWSRVLWLRQVHQVRUV HOHFWULFPRWRUV7KHZLULQJIRUWKHVHJURXQGVLV
)ODSDQGVODWVNHZVHQVRUV WKURXJKWKHIODSDQGVODWOLPLWVZLWFKHV
7KH$&(VUHFHLYHIODSSRVLWLRQGLVFUHWHVLJQDOVIURP )ODSDQG6ODW/LPLW6ZLWFKHV
WKH)6(8VIRUVRPHRIWKHIXQFWLRQVLQWKH3)&6
7KHIODSDQGVODWOLPLWVZLWFKHVVWRSWKHPRYHPHQWRI
)6(8V WKHIODSVDQGVODWVLQWKHDOWHUQDWHPRGH:KHQWKH
IODSVDQGVODWVDUHDWWKHLUOLPLWVWKHOLPLWVZLWFKHV
7KHWZR)6(8VXVHDQDORJDQGGLVFUHWHLQSXWVWR UHPRYHWKHJURXQGVIRUVRPHRIWKHVHFDOWQFRQWURO
FDOFXODWHWKHIODSDQGVODWFRPPDQGVLQWKHSULPDU\DQG UHOD\V
VHFRQGDU\PRGHV7KH\DOVRXVHGLJLWDOLQIRUPDWLRQRQ
WKHV\VWHPV$5,1&EXVHV 6HFRQGDU\$OWHUQDWH&RQWURO5HOD\V
)ODS/HYHU3RVLWLRQ6HQVRU 7KHVHFRQGDU\DOWHUQDWHFRQWUROUHOD\VFRQWUROSRZHUWR
WKHIODSDQGVODWHOHFWULFPRWRUVLQWKHVHFRQGDU\DQG
7KHIODSOHYHUSRVLWLRQVHQVRUVHQGVWKHIODSOHYHU DOWHUQDWHPRGHV7KHVHUHOD\VDOVRFRQWURODVROHQRLG
FRPPDQGVWRWKH)6(8V LQWKHIODSDQGVODWSULPDU\FRQWUROYDOYHVWRVWRSWKH
K\GUDXOLFRSHUDWLRQRIWKHIODSVDQGVODWV

+,*+/,)7&21752/,17(5)$&(6$1$/2*$1'',6&5(7(6,*1$/6
)ODSDQG6ODW(OHFWULF0RWRUV )ODSDQG6ODW6NHZ6HQVRUV
7KHIODSDQGVODWHOHFWULFPRWRUVPRYHWKHIODSDQG 7KHIODSDQGVODWVNHZVHQVRUVVXSSO\VLJQDOVWRWKH
VODWGULYHV\VWHPVLQWKHVHFRQGDU\DQGDOWHUQDWH )6(8V7KH)6(8VXVHWKHVHVLJQDOVWRPRQLWRUWKH
PRGHV7KH\UHFHLYHHOHFWULFDOSRZHUWKURXJKWKH DOLJQPHQWRIWKHIODSVDQGVODWV
VHFDOWQFRQWUROUHOD\V
)ODSDQG6ODW3ULPDU\&RQWURO9DOYHV
7KHIODSDQGVODWSULPDU\FRQWUROYDOYHVFRQWUROWKH
GLUHFWLRQDQGVSHHGRIWKHIODSDQGVODWPRYHPHQW7KH
)6(8VFRQWUROPRVWRIWKHVROHQRLGVLQWKHIODSDQG
VODWSULPDU\FRQWUROYDOYHV7KHVHFDOWQFRQWURO
UHOD\VFRQWURORQHVROHQRLGLQWKHIODSDQGVODW
SULPDU\FRQWUROYDOYHV7KHVHWZRVROHQRLGVVWRSWKH
K\GUDXOLFRSHUDWLRQRIWKHIODSVDQGVODWV
$XWRVODW3ULRULW\9DOYH
7KHDXWRVODWSULRULW\YDOYHOLPLWVWKHIORZRI
K\GUDXOLFIOXLGWRWKHPDLQODQGLQJJHDUV\VWHP7KH
)6(8VFRQWURODVROHQRLGLQWKLVYDOYHGXULQJDXWRVODW
RSHUDWLRQ
)ODSDQG6ODW3RVLWLRQ6HQVRUV
7KHIODSDQGVODWSRVLWLRQVHQVRUVVXSSO\IODSDQGVODW
SRVLWLRQVLJQDOVWRWKH)6(8V7KH)6(8VXVHWKLVGDWD
IRU
&RQWUROIHHGEDFN
3RVLWLRQLQGLFDWLRQ
)DXOWPRQLWRULQJ

$/7(51$7( )/$3$1' 6(&$/71 )/$3$1'

)/$36 6/$7/,0,7 &21752/ 6/$7(/(&75,&
6(/(&725 6:,7&+(6 5(/$<6 027256
$/7(51$7( )/$3$1'6/$7
)/$36$50 35,0$5<
6:,7&+ &21752/9$/9(6
$8726/$7
35,25,7<
9$/9(
)/$3/(9(5 $&(
326,7,21
6(1625
)/$3$1'6/$7
326,7,21
6(16256
)/$3$1'6/$7
6.(:
)6(8 6(16256
+,*+/,)7&21752/,17(5)$&(6$1$/2*$1'',6&5(7(6,*1$/6

+,*+/,)7&21752/,17(5)$&(6(/(&75,&$/32:(5
*HQHUDO
7KHVHEXVHVVXSSO\HOHFWULFDOSRZHUWRWKH+/&6
YGFEDWWHU\EXV
YGFFDSWDLQIOLJKWLQVWUXPHQWEXV
YDFVWDQGE\EXV
YGFULJKWPDLQEXV
YDFULJKWPDLQEXV
YGFOHIWPDLQEXV
YDFOHIWPDLQEXV
YDFULJKWPDLQEXV
7KHFRPSRQHQWVLQODQHRQHJHWSRZHUIURPGLIIHUHQW
EXVHVWKDQWKHFRPSRQHQWVLQODQHWZR

9'&%$77(5<%86 9$&50$,1%86
9$&67$1'%<%86 9'&&$37)/7,167%86 9'&50$,1%86
/$1()/$3 /$1()/$3 /$1()/$3

/(9(56(16256 35,0$5<&21752/ /(9(56(16256
9$/9(62/(12,'
/$1()/$3 &2,/6 /$1()/$3
3266(16256 3266(16256
/$1(6/$7 /$1(6/$7
)6(8 3266(16256 )6(8 3266(16256
/$1(6/$7
35,0$5<&21752/
6/$7 )/$3 9$/9(62/(12,' 6/$7 )/$3
6.(:6(16256 6.(:6(16256 &2,/6 6.(:6(16256 6.(:6(16256
/$1()/$3
35,0$5<&21752/
9$/9(62/(12,'
&2,/6
9$&/0$,1%86
/$1(6/$7
35,0$5<&21752/
9'&/0$,1%86 9$/9(62/(12,'
&2,/6
)/$36(&$/71 6/$76(&$/71
&21752/5(/$<6 9$&50$,1%86 &21752/5(/$<6
)/$3%<3$66 6/$7%<3$66
9$/9( 9$/9(
)/$3(/(&75,& 6/$7(/(&75,&
02725 02725
+,*+/,)7&21752/,17(5)$&(6(/(&75,&$/32:(5

+,*+/,)7&21752/02'(6(/(&7,21
*HQHUDO 3ULPDU\0RGH6HOHFWLRQ
7KHIODSVDQGVODWVRSHUDWHLQRQHRIWKUHHPRGHV ,IWKHUHLVDFRPSRQHQWIDLOXUHLQWKHFRQWUROODQHLW
FDXVHVDODQHFKDQJH7KHIODSVDQGVODWVFRQWLQXHWR
3ULPDU\PRGH RSHUDWHLQSULPDU\PRGH
6HFRQGDU\PRGH
$OWHUQDWHPRGH 7KHVHDUHWKHIRXUW\SHVRIFRPSRQHQWIDLOXUHVWKDW
FDXVHDODQHFKDQJH
7KH)6(8VFKDQJHWKHRSHUDWLRQDOPRGHIRUDQ\RIWKHVH
FRQGLWLRQV )ODSOHYHUSRVLWLRQVHQVRUIDLOXUH
6ROHQRLGFRLOIDLOXUHRQWKHSULPDU\FRQWUROYDOYH
7KHUHDUHFRPSRQHQWIDLOXUHV IRUWKHIODSVRUWKHVODWV
7KHUHDUHSRVLWLRQIDLOXUHV )ODSRUVODWSRVLWLRQVHQVRUIDLOXUH
7KHFHQWHUK\GUDXOLFUHVHUYRLUTXDQWLW\LVORZ )6(8IDLOXUH
7KHVHFRQGDU\PRGHDXWRWHVWLVDFWLYH
7KHDLUSODQHLVLQDJURXQGPDLQWHQDQFHFRQGLWLRQ 'XULQJQRUPDOFRQGLWLRQVWKHIODSVDQGVODWVRSHUDWH
<RXXVHWKHDOWHUQDWHIODSVDUPVZLWFK LQWKHSULPDU\PRGH,IDFRPSRQHQWIDLOVLQODQHDQG
ODQHLVLQFRQWUROODQHEHFRPHVWKHFRQWUROODQH
7KHSULPDU\DQGVHFRQGDU\IODSPRGHVDUHLQGHSHQGHQWRI ,QWKLVFRQGLWLRQWKHIODSVDQGVODWVVWD\LQWKH
WKHSULPDU\DQGVHFRQGDU\VODWPRGHV7KXVWKHIODSV SULPDU\PRGH7KLVIDLOXUHFRQGLWLRQFDXVHVWKH
PD\EHLQWKHVHFRQGDU\PRGHZKLOHWKHVODWVDUHLQWKH )/$36/$7&21752/VWDWXVPHVVDJHWRVKRZ
SULPDU\PRGH7KLVVXSSOLHVWKHIDVWHVWV\VWHPUHVSRQVH
WRWKHIODSOHYHUFRPPDQGV ,IODQHLVLQFRQWUROZKHQDFRPSRQHQWIDLOVLQODQH
ODQHEHFRPHVWKHFRQWUROODQHDQGWKH)/$36/$7
7KHDOWHUQDWHIODSPRGHLVQRWLQGHSHQGHQWRIWKH &21752/VWDWXVPHVVDJHVKRZV
DOWHUQDWHVODWPRGH7KXVZKHQWKHDOWHUQDWHPRGH
HQJDJHVERWKWKHIODSVDQGVODWVDUHLQWKHDOWHUQDWH ,IWKHUHLVDGHWHFWHGFRPSRQHQWIDLOXUHLQWKHVWDQGE\
PRGH ODQHZKLOHWKHFRQWUROODQHRSHUDWHVSURSHUO\WKH
DSSOLFDEOHVWDWXVPHVVDJH)/$36/$7&21752/RU
VKRZV7KHFRQWUROODQHUHPDLQVLQFRQWURO

+,*+/,)7&21752/02'(6(/(&7,21
6HFRQGDU\0RGH6HOHFWLRQ FRQGLWLRQFDXVHVWKH)/$3635,0$5<)$,/RUWKH6/$76
35,0$5<)$,/FDXWLRQPHVVDJHWRVKRZ
$IWHUDODQHFKDQJHLIWKHRULJLQDOIDLOXUHRUDQ
DGGLWLRQDORQHSUHYHQWVWKHIODSVRUVODWVWRRSHUDWH :KHQWKHFHQWHUK\GUDXOLFV\VWHPSUHVVXUHLVORZLW
LQSULPDU\PRGHWKH)6(8LQFRQWUROFKDQJHVWRWKH GRHVQRWSHUPLWWKHK\GUDXOLFPRWRUVWRRSHUDWHWKH
VHFRQGDU\PRGHRSHUDWLRQIRUWKHIODSVRUWKHVODWV IODSVDQGVODWV7KH)6(8LQFRQWUROHQJDJHVWKH
VHFRQGDU\PRGHIRUWKHIODSVDQGVODWV7KHRSHUDWLRQ
,IWKHIDLOXUHVDUHZLWKIODSFRPSRQHQWVRQO\RQO\WKH VWD\VLQWKHVHFRQGDU\PRGHXQWLOWKHIODSVDQGVODWV
SULPDU\IODSPRGHGLVHQJDJHVDQGWKHIODSVRSHUDWHLQ DUHLQWKHUHWUDFWHGSRVLWLRQRUXQWLOWKHFHQWHU
VHFRQGDU\PRGH7KHVODWVRSHUDWLRQFRQWLQXHVLQWKH K\GUDXOLFV\VWHPSUHVVXUHLVPRUHWKDQSVLDIWHU
SULPDU\PRGH7KLVFRQGLWLRQFDXVHVWKH)/$3635,0$5< LWZDVOHVVWKDQSVL
)$,/FDXWLRQPHVVDJHWRVKRZ7KHVDPHLVWUXHIRUWKH
VODWV%XWLQWKLVFDVHWKH6/$7635,0$5<)$,/FDXWLRQ )ODSVDQG6ODWV'ULYH6KXWGRZQ
PHVVDJHVKRZV
,IWKHUHDUHFRPSRQHQWIDLOXUHVWKDWDIIHFWWKH
,IWKHIDLOXUHVDIIHFWHGERWKWKHIODSVDQGVODWVVXFK RSHUDWLRQRIERWKIODSVDQGVODWVWKHIODSVDQGVODWV
DVERWK)6(8VERWKWKHSULPDU\IODSPRGHDQGWKH FDQQRORQJHURSHUDWHLQSULPDU\DQGVHFRQGDU\PRGH
SULPDU\VODWPRGHGLVHQJDJH7KLVFRQGLWLRQFDXVHVERWK 7KH)/$36/$7&21752/FDXWLRQPHVVDJHVKRZV,Q
WKH)/$3635,0$5<)$,/DQG6/$7635,0$5<)$,/FDXWLRQ DGGLWLRQWKH)/$36/$7&21752/DQGWKH)/$36/$7
PHVVDJHVWRVKRZ &21752/VWDWXVPHVVDJHVDOVRVKRZ
$IWHUWKHIODSVDQGVODWVIXOO\UHWUDFWWKHVHFRQGDU\ 7KH)6(8VGHFODUHDQGODWFKDIODSVRUVODWVGULYHVKXW
PRGHGLVHQJDJHVDQGWKHSULPDU\PRGHHQJDJHV7KHQWKH GRZQIRUDQ\RQHRIWKHVHSRVLWLRQIDLOXUHV
)/$3635,0$5<)$,/DQGRUWKH6/$7635,0$5<)$,/
PHVVDJHHUDVHV 'LVDJUHHPHQWLQVHFRQGDU\PRGH WKHIODSVRUVODWV
GRQRWPRYHZLWKDVHFRQGDU\PRGHFRPPDQGRUPRYH
7KH)6(8LQFRQWUROHQJDJHVWKHVHFRQGDU\PRGHIRUWKH WRRVORZO\
IODSVRUVODWVLIWKHUHLVDIODSRUVODWGLVDJUHHLQ $V\PPHWU\ WKHIODSVRUVODWVRQRQHZLQJGRQRW
SULPDU\PRGH7KHUHLVDGLVDJUHHZKHQWKHIODSVRU DOLJQZLWKWKHIODSVRUVODWVRQWKHRWKHUZLQJ
VODWVGRQRWPRYHZKHQFRPPDQGHGRUPRYHWRRVORZO\ 6NHZ DIODSRUVODWRQRQHZLQJLVRXWRI
7KH)6(8LQFRQWUROGLVHQJDJHVWKHSULPDU\PRGHIRUWKH DOLJQPHQW
IODSVRUWKHVODWVDQGHQJDJHWKHVHFRQGDU\PRGH7KLV

+,*+/,)7&21752/02'(6(/(&7,21
,IWKHUHLVDVHFRQGDU\PRGHGLVDJUHHDQDV\PPHWU\RU &HQWHU+\GUDXOLF4XDQWLW\
DVNHZWKH)6(8VGLVHQJDJHERWKWKHSULPDU\DQG
VHFRQGDU\PRGHVDQGVKXWGRZQWKHGULYHV\VWHPIRUWKH ,IWKHK\GUDXOLFTXDQWLW\LQWKHFHQWHUK\GUDXOLF
IODSVRUWKHVODWV V\VWHPUHVHUYRLULVORZWKH)6(8VGLVHQJDJHWKH
SULPDU\VODWPRGH7KH)6(8VWKHQHQJDJHWKHVHFRQGDU\
$VKXWGRZQRIWKHVODWVGULYHZLWKWKHVODWVDWWKH83 PRGHIRUWKHVODWVRQO\,IERWKHQJLQHVFRQWLQXHWR
SRVLWLRQDWWKHVHDOHGSRVLWLRQRUEHWZHHQXSDQG RSHUDWHIRUPRUHWKDQVHFRQGVWKHQWKHSULPDU\PRGH
JDSSHGFDXVHVWKHIODSVRSHUDWLRQWREHOLPLWHGWRWKH UHHQJDJHV
XQLWSRVLWLRQ,IWKHVODWVDUHDWWKHJDSSHG
SRVLWLRQZKHQWKHVODWVGULYHVKXWVGRZQWKHIODSVFDQ 6HFRQGDU\0RGH$XWR7HVW
RSHUDWHWRWKHIXOOH[WHQG$VKXWGRZQRIWKHIODSV
GULYHZLOOQRWOHWWKHVODWVH[WHQGWRWKHJDSSHG 'XULQJWKHVHFRQGDU\PRGHDXWRWHVWERWKWKHSULPDU\
SRVLWLRQ IODSPRGHDQGWKHSULPDU\VODWPRGHGLVHQJDJH7KH
VHFRQGDU\PRGHHQJDJHVIRUERWKWKHIODSVDQGVODWV,I
7KHVKXWGRZQRIWKHIODSVRUWKHVODWVGULYHFDXVHV WKHIODSVDQGRUVODWVIDLOWRH[WHQGGXULQJWKHWHVW
WKH)/$36'5,9(RUWKH6/$76'5,9(FDXWLRQPHVVDJHWR WKH)/$366(&21'$5<)$,/DQGRU6/$766(&21'$5<)$,/
VKRZ VWDWXVPHVVDJHVKRZV
$OWHUQDWH0RGH6HOHFWLRQ *URXQG0DLQWHQDQFH&RQGLWLRQ
7KHRQO\ZD\WRHQJDJHDQGGLVHQJDJHWKHDOWHUQDWHPRGH 7KH)6(8VLQKLELWWKHVHFRQGDU\PRGHRSHUDWLRQZKHQWKH
LVWRXVHWKHDOWHUQDWHIODSVDUPVZLWFK:KHQWKH DLUSODQHLVLQDJURXQGPDLQWHQDQFHFRQGLWLRQ<RXPXVW
SLORWSXVKHVRQWKHDOWHUQDWHIODSVDUPVZLWFKWKH XVHWKHVHFRQGDU\PRGHLQKLELWRYHUULGHIXQFWLRQRQWKH
SULPDU\DQGVHFRQGDU\PRGHVGLVHQJDJHLQERWK)6(8VDQG 0$7WRHQDEOHWKHVHFRQGDU\PRGHLQWKLVFRQGLWLRQ
WKHDOWHUQDWHPRGHHQJDJHV7KLVFDXVHVWKH)/$36/$7
&21752/FDXWLRQPHVVDJHWRVKRZ
:KHQWKHSLORWUHOHDVHVWKHDOWHUQDWHIODSVDUPVZLWFK
WKHDOWHUQDWHPRGHGLVHQJDJHVDQGWKH)6(8VWU\WR
HQJDJHWKHSULPDU\PRGH,IWKHSULPDU\PRGHLV
GLVDEOHGWKH)6(8VWU\WRHQJDJHWKHVHFRQGDU\PRGH
,IWKHVHFRQGDU\PRGHLVDOVRGLVDEOHG\RXPXVWXVH
WKHDOWHUQDWHPRGHWRPRYHWKHIODSVDQGVODWV

$/71)/$36
$50
$/71
$/7(51$7()/$3
2)) $1'6/$702'(
5(7 (;7
$/7(51$7(
)/$363$1(/
35,0$5<
)/$302'(
$/(5767$7860(66$*(6 7<3(
02'(6(/(&7,21 )/$36/$7&21752/ &$87,21
6(&21'$5< )/$3635,0$5<)$,/ &$87,21
35,0$5<02'( )/$302'(
6(&21'$5<02'( 6/$7635,0$5<)$,/ &$87,21
'5,9(6+87'2:1 )/$36'5,9( &$87,21
$/7(51$7(02'( 6/$76'5,9( &$87,21
&(17(5+<'47< 35,0$5< )/$36/$7&21752/ 67$786
6(&02'($8727(67 6/$702'( )/$36/$7&21752/ 67$786
*5281'0$,17(1$1&( )/$366(&21'$5<)$,/ 67$786
6/$766(&21'$5<)$,/ 67$786
6(&21'$5<
6/$702'(
&21752//$:6
)6(8
+,*+/,)7&21752/02'(6(/(&7,21

+,*+/,)7&21752/35,0$5<02'()/$3$1'6/$76(48(1&(
7+,63$*(,17(17,21$//</()7%/$1.

+,*+/,)7&21752/35,0$5<02'()/$3$1'6/$76(48(1&(
*HQHUDO WKHIODSVEHJLQWRH[WHQG:KHQWKHIODSVDUHDWWKH
XQLWSRVLWLRQWKHIODSVVWRSPRYLQJ7KHVODWVWKHQ
7KHIODSVDQGVODWVH[WHQGDQGUHWUDFWLQVHTXHQFH7KH H[WHQGWRWKHJDSSHGSRVLWLRQ:KHQWKHVODWVDUHLQ
H[WHQVLRQDQGUHWUDFWLRQVHTXHQFHLVGLIIHUHQWEHWZHHQ WKHJDSSHGSRVLWLRQWKHIODSVPRYHWRWKHIXOO\
WKHWKUHHPRGHV H[WHQGHGSRVLWLRQ
)ODSDQG6ODW3RVLWLRQV 7KHUHWUDFWLRQVHTXHQFHLVWKHUHYHUVHRIWKH
H[WHQVLRQ
,QWKHSULPDU\PRGHWKHIODSOHYHUFRPPDQGVWKHIODSV
DQGVODWVWRPRYHWRWKHFRPPDQGHGSRVLWLRQ$WIODS ([WHQVLRQDQG5HWUDFWLRQ7LPH
OHYHUSRVLWLRQV83DQGWKHIODSVDUHIXOO\
UHWUDFWHG$WIODSOHYHUSRVLWLRQVWKURXJKWKH 7KHH[WHQVLRQWLPHLVWKHVDPHDVWKHUHWUDFWLRQWLPH
IODSSRVLWLRQVDUHWKHVDPHDVWKHIODSOHYHU
SRVLWLRQV ,WWDNHVVHFRQGVWRPRYHWKHVODWVDQGIODSVIURP
WKH83SRVLWLRQWRWKHXQLWSRVLWLRQ7KHGHWDLOHG
7KHVODWVKDYHWKUHHSRVLWLRQVXSVHDOHGDQGJDSSHG WLPHVDUH
7KHVODWVDUHDWWKHVHDOHGSRVLWLRQZKHQWKHIODS
OHYHULVDWRU7KHVODWVDUHDWWKHJDSSHG VHFRQGVWRPRYHWKHVODWVIURPWKHUHWUDFWHG
SRVLWLRQZKHQWKHIODSOHYHULVDWRU SRVLWLRQWRWKHVHDOHGSRVLWLRQ
VHFRQGVWRPRYHWKHIODSVIURPWKHUHWUDFWHG
)ODSORDGUHOLHILVDYDLODEOHLQWKHSULPDU\PRGH/RDG SRVLWLRQWRWKHXQLWSRVLWLRQ
UHOLHIRSHUDWLRQLVGHVFULEHGODWHU VHFRQGVWRPRYHWKHVODWVIURPWKHVHDOHG
SRVLWLRQWRWKHJDSSHGSRVLWLRQ
)ODSOHYHUGHWHQWXSLVIRUFUXLVH'HWHQWLVIRU VHFRQGVWRPRYHWKHIODSVIURPWKHXQLW
FOLPERXWDQGDSSURDFK'HWHQWVDQGDUHWKH SRVLWLRQWRWKHXQLWSRVLWLRQ
WDNHRIIVHWWLQJV'HWHQWVDQGDUHWKHODQGLQJ
VHWWLQJV )ODS2SHUDWLRQ:LWK6ODWV'ULYH6KXWGRZQ
)ODSDQG6ODW([WHQVLRQDQG5HWUDFWLRQ :KHQWKHVODWVIDLOWRPRYHWRWKHFRPPDQGHGSRVLWLRQ
LQSULPDU\DQGVHFRQGDU\PRGHWKH)6(8VVKXWGRZQWKH
'XULQJH[WHQVLRQIURPWKHUHWUDFWHGSRVLWLRQWKHVODWV VODWVGULYH:LWKDVODWVGULYHVKXWGRZQWKHIODSV
H[WHQGWRWKHVHDOHGSRVLWLRQZKLOHWKHIODSVVWD\ FRQWLQXHWRRSHUDWHLQSULPDU\PRGH7KHIODSVPRYHWR
UHWUDFWHG:KHQWKHVODWVDUHDWWKHVHDOHGSRVLWLRQ WKHLUFRPPDQGHGSRVLWLRQLQGHSHQGHQWO\RIWKHVODW

+,*+/,)7&21752/35,0$5<02'()/$3$1'6/$76(48(1&(
SRVLWLRQ,IWKHVODWVDUHQRWDWWKHJDSSHGSRVLWLRQ
ZKHQWKHVODWVGULYHVKXWGRZQRFFXUVWKHIODSVFDQQRW
PRYHPRUHWKDQWKHXQLWSRVLWLRQ,IWKHVODWVDUH
DWWKHJDSSHGSRVLWLRQZKHQWKHVODWVGULYHVKXWGRZQ
RFFXUVWKHIODSVFDQPRYHPRUHWKDQWKHXQLW
SRVLWLRQ
&$87,21 0$.(685(7+($'3$&&(66'225,6)8//<23(125
)8//<&/26(':+(1<28029(7+(75$,/,1*('*(
)/$367+()/$36&$1+,77+('225,),7,6127
)8//<23(125&/26('7+,6&$1&$86('$0$*(72
(48,30(17

83 83
83
6($/('
83
*$33('
/($',1*
('*( 6($/('
6/$76
83

75$,/,1*
('*(
)/$36

83

83
*$33('
)/$3/(9(5'(7(17

+,*+/,)7&21752/35,0$5<02'()/$3$1'6/$76(48(1&(

+,*+/,)7&21752/6(&21'$5<02'()/$3$1'6/$76(48(1&(
*HQHUDO $WLPHRIPLQXWHVDQGVHFRQGVLVQHFHVVDU\WRPRYH
WKHVODWVDQGWKHIODSVIURPWKH83SRVLWLRQWRWKH
7KHVHTXHQFHRIWKHIODSDQGVODWH[WHQVLRQDQG XQLWSRVLWLRQ7KHWLPHVDUH
UHWUDFWLRQLQWKHVHFRQGDU\PRGHLVDOPRVWWKHVDPHDV
LQWKHSULPDU\PRGH PLQXWHDQGVHFRQGVWRPRYHWKHVODWVIURPWKH
UHWUDFWHGSRVLWLRQWRWKHJDSSHGSRVLWLRQ
)ODSDQG6ODW3RVLWLRQV PLQXWHVDQGVHFRQGVWRPRYHWKHIODSVIURPWKH
UHWUDFWHGSRVLWLRQWRWKHXQLWSRVLWLRQ
,QWKHVHFRQGDU\PRGHWKHIODSOHYHUJLYHVFRPPDQGVWR
WKHIODSVDQGVODWVWRPRYHWRWKHFRPPDQGHGSRVLWLRQ )ODS2SHUDWLRQ:LWK6ODWV'ULYH6KXWGRZQ
7KHIODSSRVLWLRQVDUHWKHVDPHDVLQWKHSULPDU\PRGH
:KHQWKHVODWVGRQRWPRYHWRWKHFRPPDQGHGSRVLWLRQLQ
7KHVODWVH[WHQGWRWKHJDSSHGSRVLWLRQZKHQWKHIODS SULPDU\DQGVHFRQGDU\PRGHWKH)6(8VVWRSWKHVODWV
OHYHULVDWDOOSRVLWLRQVEXWXS GULYH:KHQWKHVODWVGULYHVWRSVWKHIODSVFRQWLQXH
WRRSHUDWHLQSULPDU\PRGH7KHIODSVPRYHWRWKHLU
6ODWORDGUHOLHIRSHUDWHVLQWKHVHFRQGDU\PRGH7KH FRPPDQGHGSRVLWLRQLQGHSHQGHQWO\RIWKHVODWSRVLWLRQ
VODWVUHWUDFWWRWKHVHDOHGSRVLWLRQZKHQWKHDLUVSHHG ,IWKHVODWVDUHQRWDWWKHJDSSHGSRVLWLRQZKHQWKH
LVPRUHWKDQNQRWV/RDGUHOLHIRSHUDWLRQVKRZVLQ VODWVGULYHVWRSVWKHIODSVFDQQRWPRYHWRPRUHWKDQ
DODWHUVHFWLRQ WKHXQLWSRVLWLRQ,IWKHVODWVDUHDWWKHJDSSHG
SRVLWLRQZKHQWKHVODWVGULYHVWRSVWKHIODSVFDQPRYH
)ODSDQG6ODW([WHQVLRQDQG5HWUDFWLRQ WRPRUHWKDQWKHXQLWSRVLWLRQ
'XULQJH[WHQVLRQWKHVODWVH[WHQGWRWKHJDSSHG
SRVLWLRQEHIRUHWKHIODSVH[WHQG:KHQWKHVODWVDUHDW
WKHJDSSHGSRVLWLRQWKHIODSVH[WHQGWRWKHFRPPDQGHG
SRVLWLRQ
7KHVHTXHQFHRIWKHIODSDQGVODWUHWUDFWLRQLVWKH
RSSRVLWHRIWKHIODSDQGVODWH[WHQVLRQ
([WHQVLRQDQG5HWUDFWLRQ7LPH
7KHH[WHQVLRQWLPHLVWKHVDPHDVWKHUHWUDFWLRQWLPH

83 83
83
,)$,563((',6
*$33(' 83 025(7+$1.1276

*$33('
/($',1*
('*( 6($/('
6/$76
83

75$,/,1*
('*(
)/$36

83

83
)/$3/(9(5'(7(17

+,*+/,)7&21752/6(&21'$5<02'()/$3$1'6/$76(48(1&(

75$,/,1*('*()/$36*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

75$,/,1*('*()/$36*(1(5$/'(6&5,37,21
*HQHUDO $VWKHIODSVPRYHWKHIODSSRVLWLRQVHQVRUVVHQG
IHHGEDFNVLJQDOVWRWKH)6(8V7KH)6(8VVWRSWKHIODS
7KHIODSVRSHUDWHLQRQHRIWKUHHPRGHV FRPPDQGVZKHQWKHIHHGEDFNVLJQDOVHTXDOWKHFRPPDQGHG
SRVLWLRQ
3ULPDU\PRGH
6HFRQGDU\PRGH 7KH)6(8VXVHWKHIODSVNHZVHQVRUVWRVKXWGRZQWKH
$OWHUQDWHPRGH SULPDU\PRGH DQGWKHVHFRQGDU\PRGH LIWKHUHLVD
IODSVNHZRUDV\PPHWU\
7KHSULPDU\PRGHXVHVK\GUDXOLFSRZHUWRRSHUDWHWKH
IODSV7KHVHFRQGDU\DQGDOWHUQDWHPRGHVXVHHOHFWULFDO 6HFRQGDU\0RGH
SRZHUWRRSHUDWHWKHIODSV
7KH)6(8VXVHWKHVHFRQGDU\PRGHZKHQWKHSULPDU\PRGH
3ULPDU\0RGH GLVHQJDJHV7KHVHFRQGDU\PRGHLVRQO\DYDLODEOHLQWKH
DLURUGXULQJVSHFLDOPDLQWHQDQFHIXQFWLRQV
7KHSULPDU\PRGHKDVDFORVHGORRSFRQWUROV\VWHP7KH
SLORWFRPPDQGVWKHIODSVZLWKWKHIODSOHYHU7KHIODS 7KHVHFRQGDU\PRGHDOVRKDVDFORVHGORRSFRQWURO
OHYHUSRVLWLRQVHQVRUVHQGVLQSXWVLJQDOVWRWKH)6(8V V\VWHP7KHSLORWFRPPDQGVWKHIODSVZLWKWKHIODS
7KH)6(8VXVHWKHIODSOHYHUSRVLWLRQWRFDOFXODWHWKH OHYHU7KH)6(8VXVHWKHIODSOHYHUSRVLWLRQWR
IODSFRPPDQGV7KH)6(8VDOVRUHFHLYHGDWDIURPWKH FDOFXODWHWKHIODSFRPPDQGV7KH)6(8VWKHQHQHUJL]H
V\VWHPV$5,1&EXVHV WKHVHFRQGDU\DOWHUQDWHFRQWUROUHOD\V2QHUHOD\
HQHUJL]HVWKHE\SDVVVROHQRLGLQWKHIODSSULPDU\
7KH)6(8VVHQGWKHIODSFRPPDQGVWRWKHIODSSULPDU\ FRQWUROYDOYHDQGWKHFOXWFKLQWKHHOHFWULFPRWRU
FRQWUROYDOYH7KLVYDOYHVXSSOLHVK\GUDXOLFSRZHUWR XQLW7KLVVWRSVK\GUDXOLFSRZHUWRWKHK\GUDXOLFPRWRU
WKHIODSSRZHUGULYHXQLW 3'8 7KHK\GUDXOLFPRWRURQ DQGOHWVIUHHIORZWKURXJKLW7KHHOHFWULFPRWRU
WKH3'8WKHQPRYHVWKHIODSPHFKDQLVPV FOXWFKFRQQHFWVWKHPRWRUVKDIWWRWKH3'8JHDUER[7KH
RWKHUUHOD\VFRQWUROHOHFWULFDOSRZHUWRWKHIODS
7KHIODSVODWSULRULW\YDOYHFRQWUROVWKHDPRXQWRI HOHFWULFPRWRURQWKHIODS3'87KHHOHFWULFPRWRUWKHQ
K\GUDXOLFIORZWRWKHIODSSULPDU\FRQWUROYDOYH7KH PRYHVWKHIODSPHFKDQLVPV
IODSVODWSULRULW\YDOYHJLYHVSULRULW\RIK\GUDXOLF
SRZHUWRWKHSULPDU\IOLJKWFRQWUROV\VWHP 3)&6 RYHU $VWKHIODSVPRYHWKHIODSSRVLWLRQVHQVRUVVHQG
WKH+/&6 IHHGEDFNVLJQDOVWRWKH)6(8V7KH)6(8VFRPPDQGWKH
UHOD\VWRVWRSWKHHOHFWULFPRWRUZKHQWKHIODSVDUHDW
WKHFRPPDQGHGSRVLWLRQ

75$,/,1*('*()/$36*(1(5$/'(6&5,37,21
7KH)6(8VXVHWKHIODSVNHZVHQVRUVWRVKXWGRZQWKH
VHFRQGDU\PRGHLIWKHUHLVDIODSVNHZRUDV\PPHWU\
$OWHUQDWH0RGH
7KHDOWHUQDWHPRGHKDVDQRSHQORRSFRQWUROV\VWHP7KH
SLORWXVHVWKHVZLWFKHVRQWKHDOWHUQDWHIODSVSDQHOWR
FRPPDQGWKHIODSV$QDUPVZLWFKVHQGVDGLVFUHWH
VLJQDOWRWKH)6(8VWRGLVHQJDJHWKHSULPDU\DQG
VHFRQGDU\PRGHV7KLVVZLWFKDOVRHQHUJL]HVRQHRIWKH
VHFRQGDU\DOWHUQDWHFRQWUROUHOD\V7KLVUHOD\
HQHUJL]HVWKHE\SDVVVROHQRLGLQWKHIODSSULPDU\
FRQWUROYDOYHDQGWKHFOXWFKLQWKHHOHFWULFPRWRU
XQLW7KLVVWRSVK\GUDXOLFSRZHUWRWKHK\GUDXOLFPRWRU
DQGOHWVIUHHIORZWKURXJKLWWKHHOHFWULFPRWRU
FOXWFKFRQQHFWVWKHPRWRUVKDIWWRWKH3'8JHDUER[
7KHDOWHUQDWHIODSVVHOHFWRUVHQGVFRPPDQGVWKURXJKWKH
IODSOLPLWVZLWFKWRHQHUJL]HWKHRWKHU
VHFRQGDU\DOWHUQDWHFRQWUROUHOD\V7KHVHUHOD\V
FRQWUROHOHFWULFDOSRZHUWRWKHIODSHOHFWULFPRWRULQ
WKH3'87KHHOHFWULFPRWRUWKHQPRYHVWKHIODS
PHFKDQLVPV
7KHIODSVPRYHXQWLOWKHSLORWPRYHVWKHDOWHUQDWH
IODSVVHOHFWRUWRWKH2))SRVLWLRQRUWKHIODSOLPLW
VZLWFKVWRSVWKHPRWRUZKHQWKHIODSVDUHDWWKHOLPLW
7KHUHLVQRDXWRPDWLFVKXWGRZQRIWKHDOWHUQDWHPRGHLI
WKHUHLVDIODSVNHZRUDV\PPHWU\

$/71)/$36
$50
$/71 6(&$/71
&21752/
5(/$<6
2)) &(17(5+<'5$8/,&
5(7 (;7
6<67(0
)/$3
/,0,7
6:,7&+
)/$36/$7
$/7(51$7( 35,25,7<9$/9(
)/$363$1(/
)/$3
)/$3 3'8
83

)/$3/(9(5
326,7,21
6(1625

)/$335,0$5< +<'5$8/,& (/(&75,&

)6(8 &21752/9$/9( 02725 02725
)/$3/(9(5
)/$3326,7,21
6(16256
)/$36
)/$36.(:
0(&+$1,&$/ 6(16256
&211(&7,21
+<'5$8/,& 6<67(06$5,1&
&211(&7,21 %86(6
75$,/,1*('*()/$36*(1(5$/'(6&5,37,21

75$,/,1*('*()/$36*(1(5$/'(6&5,37,21)/$3'5,9(6<67(0
*HQHUDO ZKHQWKHIODSVPRYHWRWKHLUOLPLWGXULQJRSHUDWLRQLQ
WKHDOWHUQDWHPRGH
7KHVHDUHWKHFRPSRQHQWVRIWKHIODSGULYHV\VWHP
$QJOH*HDUER[HV
)ODS3'8
7RUTXHWXEHV 7KHDQJOHJHDUER[HVFRQQHFWWRUTXHWXEHVWKDWDUHDW
7RUTXHWXEHVXSSRUWV GLIIHUHQWDQJOHVWRHDFKRWKHU
3RVLWLRQVHQVRUJHDUER[HV
$QJOHJHDUER[HV 7UDQVPLVVLRQ$VVHPEOLHV
7UDQVPLVVLRQDVVHPEOLHV
7KHWUDQVPLVVLRQDVVHPEOLHVUHFHLYHSRZHUIURPWKH
)ODS3'8 WRUTXHWXEHWRPRYHWKHIODSVXUIDFHV7KHUHDUHWZR
WUDQVPLVVLRQVIRUHDFKIODSVXUIDFH
7KHIODS3'8JHWVK\GUDXOLFSRZHUWKURXJKWKHSULPDU\
FRQWUROYDOYH,WJHWVHOHFWULFSRZHUWKURXJKWKHIODS
H[WHQGUHWUDFWUHOD\V+\GUDXOLFDQGHOHFWULFPRWRUVRQ
WKH3'8PRYHWKHIODSGULYHV\VWHP
7RUTXH7XEHV
7KHWRUTXHWXEHVWUDQVPLWSRZHUIURPWKH3'8WRWKH
WUDQVPLVVLRQDVVHPEOLHV
7RUTXH7XEH6XSSRUWV
7KHWRUTXHWXEHVXSSRUWVKROGWKHWRUTXHWXEHV
3RVLWLRQ6HQVRU*HDUER[HV
7KHSRVLWLRQVHQVRUJHDUER[HVFRQWDLQWKHIODSSRVLWLRQ
VHQVRUVDQGWKHOLPLWVZLWFK7KHVHQVRUVVHQGIODS
SRVLWLRQVLJQDOVWRWKH)6(8V7KHOLPLWVZLWFKUHPRYHV
HOHFWULFDOSRZHUIURPWKHHOHFWULFPRWRU,WGRHVWKLV

/()76,'( .($/
2))86(/$*( %($0
$1*/( 72548(78%(
*($5%2; 6833257
75$160,66,21
$66(0%/<
72548(
78%( )/$33'8
75$160,66,21
$66(0%/<
,1%2$5')/$3 $1*/(
*($5%2;
75$160,66,21 326,7,21
$66(0%/< 75$160,66,21 6(1625
$66(0%/< *($5%2;
287%2$5')/$3
/()76,'( .($/
2))86(/$*( %($0
127(/()7)/$36$5(6+2:1
5,*+7)/$36$5($/02677+(6$0(
75$,/,1*('*()/$36*(1(5$/'(6&5,37,21)/$3'5,9(6<67(0

75$,/,1*('*()/$36&20321(17/2&$7,216
)OLJKW'HFN&RQWUROV
7KHIODSOHYHUDQGWKHDOWHUQDWHIODSVSDQHODUHRQWKH
3FRQWUROVWDQG7KHIODSOHYHUSRVLWLRQVHQVRULV
LQVLGHWKHFRQWUROVWDQG
0DLQ(TXLSPHQW&HQWHU
7KH)6(8LVRQWKH(VKHOI7KH)6(8LVRQWKH
(VKHOI

3&21752/67$1'
)/$3/(9(5
)/$3/(9(5326,7,216(1625
$/7(51$7()/$363$1(/
(5$&.
)6(8 (
(5$&.
)6(8 (
0$,1(48,30(17&(17(5
/22.,1*)25:$5'
0$,1(48,30(17&(17(5
/22.,1*$)7
75$,/,1*('*()/$36&20321(17/2&$7,216

75$,/,1*('*()/$36&20321(17/2&$7,216
*HQHUDO 7KHUHDUVSDUDQJOHJHDUER[HVDQGVRPHRIWKHWRUTXH
WXEHVDWWDFKWRWKHUHDUVSDURIWKHZLQJV$FFHVVWR
7KHIODSFRPSRQHQWVDUHLQWKHVHDUHDV WKHJHDUER[HVLVWKURXJKSDQHOVXQGHUWKHZLQJV([WHQG
WKHIODSVWRJHWDFFHVVWRWKHWRUTXHWXEHV
7KHPDLQODQGLQJJHDUZKHHOZHOOV
7KHZLQJV
0DLQ/DQGLQJ*HDU:KHHO:HOO&RPSRQHQWV
7KHIODSSULPDU\FRQWUROYDOYHDQGWKHIODSVODW
SULRULW\YDOYHDWWDFKWRWKHNHHOEHDPLQWKHULJKW
ZKHHOZHOO
7KHIODS3'8DWWDFKHVWRWKHWRSRIWKHNHHOEHDP
$FFHVVWRWKHIODS3'8LVWKURXJKWKHOHIWRUULJKW
ZKHHOZHOO
7KHIODSSRVLWLRQVHQVRUJHDUER[HVDWWDFKWREUDFNHWV
RQWKHIORRUEHDPV2QHRIWKHVHJHDUER[HVLVLQWKH
ULJKWZKHHOZHOODQGWKHRWKHULVLQWKHOHIWZKHHO
ZHOO
7KHLQERDUGIODSLQERDUGWUDQVPLVVLRQVVLGHRIERG\
DQJOHJHDUER[HVDQGVRPHRIWKHWRUTXHWXEHVDUHDOVR
LQWKHZKHHOZHOOV
:LQJ&RPSRQHQWV
7KHRXWERDUGIODSVLQERDUGPDLQIODSVDQGLQERDUGDIW
IODSVDUHRQWKHZLQJV0RVWRIWKHIODSWUDQVPLVVLRQV
DQGEDOOVFUHZVDUHXQGHUWKHZLQJV5HPRYHWKHIODS
VXSSRUWIDLULQJVXQGHUWKHZLQJRUH[WHQGWKHIODSVWR
JHWDFFHVVWRWKHWUDQVPLVVLRQVDQGEDOOVFUHZV

72548(78%(
75$160,66,21
$66(0%/<
.((/%($0
326,7,21
6(1625
*($5%2; 3'8 ):'

6,'(2)%2'<
$1*/(*($5%2;

5($563$5
$1*/(*($5%2; )/$335,0$5<
&21752/9$/9(
72548(78%( 5,*+7:+((/:(//
6833257 )/$36/$7
35,25,7<9$/9(
5,*+7:+((/:(//
,1%2$5'$)7)/$3
,1%2$5'0$,1
)/$3
287%2$5')/$3
75$,/,1*('*()/$36&20321(17/2&$7,216

75$,/,1*('*()/$36$/7(51$7()/$363$1(/
3XUSRVH WKHIODSVDQGVODWVWXUQWKHVHOHFWRUWRWKH5(7
SRVLWLRQ
7KHWZRVZLWFKHVRQWKHDOWHUQDWHIODSVSDQHODUH
7RGLVHQJDJHWKHDOWHUQDWHPRGHSXVKWKHDOWHUQDWH
7KHDOWHUQDWHIODSVDUPVZLWFK IODSVDUPVZLWFKDJDLQ
7KHDOWHUQDWHIODSVVHOHFWRU
7KHVHVZLWFKHVFRQWUROWKHIODSVDQGVODWVLQWKH
DOWHUQDWHPRGH
3K\VLFDO'HVFULSWLRQ
7KHDOWHUQDWHIODSVDUPVZLWFKLVDJXDUGHGDOWHUQDWH
DFWLRQVZLWFK:KHQ\RXSXVKWKHVZLWFK$/71VKRZV
7KHDOWHUQDWHIODSVVHOHFWRUKDVWKHVHGHWHQWV
2))
5(7
(;7
/RFDWLRQ
7KHDOWHUQDWHIODSVSDQHOLVRQWKHULJKWVLGHRIWKH
3FRQWUROVWDQG
2SHUDWLRQ
7RHQJDJHWKHDOWHUQDWHPRGHSXVKWKHDOWHUQDWHIODSV
DUPVZLWFK7RH[WHQGWKHIODSVDQGVODWVLQWKH
DOWHUQDWHPRGHWXUQWKHDOWHUQDWHIODSVVHOHFWRUWR
WKH(;7SRVLWLRQ7XUQWKHVHOHFWRUWRWKH2))SRVLWLRQ
WRVWRSWKHPRYHPHQWRIWKHIODSVDQGVODWV7RUHWUDFW

)/$3/(9(5
$/71)/$36
$50
$/7(51$7()/$36
$/71 $506:,7&+
3&21752/67$1'
2))
5(7 (;7
$/7(51$7()/$36
6(/(&725
$/7(51$7(
)/$363$1(/
75$,/,1*('*()/$36$/7(51$7()/$363$1(/

75$,/,1*('*()/$36/2$'5(/,())81&7,21$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

75$,/,1*('*()/$36/2$'5(/,())81&7,21$/'(6&5,37,21
*HQHUDO /RDG5HOLHI
7KHIODSORDGUHOLHIIXQFWLRQSUHYHQWVGDPDJHWRWKH /RDGUHOLHIUHWUDFWVWKHIODSVWRLIWKHIODSOHYHU
IODSVDQGWKHLUVXSSRUWVWUXFWXUHVEHFDXVHRIODUJH LVDWDQGWKHDLUVSHHGLVPRUHWKDQNQRWV7KH
DHURG\QDPLFIRUFHV ORDGUHOLHIFRPPDQGGRHVDUHVHWLIWKHDLUVSHHG
GHFUHDVHVWROHVVWKDQNQRWV
)ODSORDGUHOLHISXWVDOLPLWRQIODSSRVLWLRQDVD
IXQFWLRQRIDLUVSHHG7KLVIXQFWLRQVWDUWVZKHQWKH /RDG5HOLHI
DLUVSHHGLVPRUHWKDQRQHNQRWPRUHWKDQWKHIODS
SODFDUGVSHHGV /RDGUHOLHIUHWUDFWVWKHIODSVWRLIWKHIODSOHYHU
LVDWRUDQGWKHDLUVSHHGLVPRUHWKDQNQRWV
)ODSORDGUHOLHIRSHUDWHVRQO\LQWKHSULPDU\PRGH,W 7KHORDGUHOLHIFRPPDQGGRHVDUHVHWLIWKHDLUVSHHG
FRPSDUHVWKHIODSOHYHUFRPPDQGSRVLWLRQWRWKH GHFUHDVHVWROHVVWKDQNQRWV
DLUVSHHG
/RDG5HOLHI
/RDGUHOLHILVDFWLYHLIWKHDLUVSHHGLQFUHDVHVDERYH
WKHORDGUHOLHIOLPLWIRUPRUHWKDQRQHKDOIVHFRQG /RDGUHOLHIUHWUDFWVWKHIODSVWRLIWKHIODSOHYHU
/RDGUHOLHIWKHQUHWUDFWVWKHIODSVRUSUHYHQWV LVDWRUDQGWKHDLUVSHHGLVPRUHWKDQ
H[WHQVLRQRIWKHIODSVWRWKHFRPPDQGHGSRVLWLRQ)ODS NQRWV7KHORDGUHOLHIFRPPDQGGRHVDUHVHWLIWKH
ORDGUHOLHIUHWUDFWVWKHIODSVWRWKHVHSRVLWLRQV DLUVSHHGGHFUHDVHVWROHVVWKDQNQRWV
/RDG5HOLHI

/RDGUHOLHIUHWUDFWVWKHIODSVWRLIWKHIODSOHYHU
LVDWRUDQGWKHDLUVSHHGLVPRUHWKDQ
NQRWV7KHORDGUHOLHIFRPPDQGGRHVDUHVHWLIWKH
7KHIODSORDGUHOLHIFRPPDQGGRHVDUHVHWZKHQWKH DLUVSHHGGHFUHDVHVWROHVVWKDQNQRWV
DLUVSHHGGHFUHDVHVWROHVVWKDQDVHWYDOXH7KHORDG
UHOLHIFRPPDQGDOVRGRHVDUHVHWZKHQWKHSLORWPRYHV ,QGLFDWLRQ
WKHIODSOHYHUWRRUOHVVWKDQWKHIODSORDGUHOLHI
SRVLWLRQ :KHQIODSORDGUHOLHILVDFWLYHWKH/2$'5(/,()
PHVVDJHVKRZVRQWKH(,&$6GLVSOD\RURQWKH(,&$6
FRPSDFWHGHQJLQHGLVSOD\

75$,/,1*('*()/$36/2$'5(/,())81&7,21$/'(6&5,37,21
7KHIODSSRVLWLRQLQGLFDWLRQVKRZVWKHSRVLWLRQRIWKH
IODSV'XULQJORDGUHOLHIWKHFRPPDQGEDUDQGGHWHQW
QXPEHUFKDQJHWRPDJHQWDDQGGRQRWDJUHHZLWKWKHIODS
SRVLWLRQ

)/$3/,0,7
.
.
.
.
)/$33/$&$5'
.
.
/2$'
5(/,() 3&(17(5)25:$5'
7<3 3$1(/

)/$3 /2$'
326,7,21 5(/,()
81,76 5(6(7

/2$'5(/,()
,1',&$7,21

)
/ /2$'
$
3
5(/,()
6
$,563((' .1276
)/$3326,7,21
,1',&$7,21
(,&$6',63/$<25
(,&$6&203$&7('
(1*,1(',63/$<
75$,/,1*('*()/$36/2$'5(/,())81&7,21$/'(6&5,37,21

)/$3326,7,21,1',&$7,21*(1(5$/'(6&5,37,21
3XUSRVH )DLOXUH'HWHFWLRQ
7KHIODSSRVLWLRQLQGLFDWLRQV\VWHPPHDVXUHVWKH 0RQLWRUVLQWKH)6(8VFRPSDUHWKHIODSSRVLWLRQGDWDWR
SRVLWLRQRIWKHIODSVDQGVHQGVWKLVGDWDWRWKH)6(8V WKHIODSFRPPDQGV7KHVHPRQLWRUVILQGIDLOXUHVLQWKH
7KH)6(8VXVHWKLVGDWDIRU +/&6DQGWKHIODSGULYHV\VWHP
)ODSFRQWURO
)ODSVODWSRVLWLRQLQGLFDWLRQ
)DLOXUHGHWHFWLRQ
)ODS&RQWURO
7KH)6(8VXVHWKHIODSSRVLWLRQGDWDGXULQJWKHIODS
RSHUDWLRQLQWKHSULPDU\DQGVHFRQGDU\PRGHV7KHVH
PRGHVKDYHFORVHGORRSFRQWURORIWKHIODSV&ORVHG
ORRSFRQWUROVWRSVWKHIODSFRPPDQGZKHQWKHIODS
SRVLWLRQHTXDOVWKHFRPPDQG
)ODS6ODW3RVLWLRQ,QGLFDWLRQ
7KH)6(8VVHQGWKHIODSSRVLWLRQGDWDWRWKHDLUSODQH
LQIRUPDWLRQPDQDJHPHQWV\VWHP $,06 7KH$,06XVHV
WKLVGDWDWRVKRZWKHIODSVODWSRVLWLRQLQGLFDWLRQRQ
(,&$6GLVSOD\V
7KH)6(8VVHQGWKHIODSSRVLWLRQGDWDWRWKH$,06ZKHQ
WKHGDWDLVYDOLG7KLVOHWVIODSVODWSRVLWLRQVKRZLQ
DOOWKUHH+/&6PRGHV7KHWKUHHIODSVODWSRVLWLRQ
LQGLFDWLRQVDUH
7KHSULPDU\PRGHGLVSOD\
7KHVHFRQGDU\PRGHGLVSOD\
7KHDOWHUQDWHPRGHGLVSOD\

$,06
&$%,1(76
)/$3326,7,216(16256 )6(8 6<67(06

$5,1& (,&$6',63/$<25
%86 (,&$6&203$&7('
',63/$<
)
/ ) )
$ /
/
3 $ $
6 3 3
6 6
35,0$5<02'(',63/$< 6(&21'$5<02'(',63/$< $/7(51$7(02'(',63/$<
)/$3326,7,21,1',&$7,21*(1(5$/'(6&5,37,21

/($',1*('*(6/$76,1752'8&7,21
7+,63$*(,17(17,21$//</()7%/$1.

/($',1*('*(6/$76,1752'8&7,21
*HQHUDO 7KHVODWVDUHPRQLWRUHGIRUVNHZRUDV\PPHWU\:KHQ
WKHUHLVDVNHZRUDV\PPHWU\WKHVODWGULYHVWRSV
7KHOHDGLQJHGJH /( VODWVPDNHWDNHRIIDQGODQGLQJ PRYHPHQW
SHUIRUPDQFHRIWKHDLUSODQHEHWWHU:KHQWKHVODWV
H[WHQGWKH\LQFUHDVHWKHOLIWRIWKHZLQJ7KH\DOVR 7UDLQLQJ,QIRUPDWLRQ3RLQW
LQFUHDVHWKHDQJOHRIDWWDFN $2$ DWZKLFKWKHZLQJ
KDVDVWDOO :$51,1* '27+(/($',1*('*(6/$7'($&7,9$7,21%()25(
<28'2:25.217+(6/$76<67(0:,7+7+(6/$76
7KHVODWVDUHSDUWRIWKHKLJKOLIWFRQWUROV\VWHP $&7,9$7('7+(6/$76&$1029(48,&./<$1'
+/&6 7KH+/&6HOHFWULFDOO\FRQWUROVWKHVODWVZLWKD &$86(,1-85<723(5621625'$0$*(72
IO\E\ZLUHV\VWHP (48,30(17
'XULQJWDNHRIIDQGODQGLQJWKHSLORWVXVHWKHIODS :$51,1* 0$.(685(7+(7+58675(9(56(5&2:/6$5(127

OHYHUWRJLYHFRPPDQGVWRWKHVODWVWRH[WHQGWRWKH 23(1)$57+(57+$17+(+2/'23(152'326,7,21
VHDOHGRUJDSSHGSRVLWLRQV$IWHUWDNHRIIWKHSLORWV :+(1<2823(5$7(7+()/$36$1'6/$767+(
XVHWKHIODSOHYHUWRJLYHFRPPDQGVWRWKHVODWVWR 6/$76&$1+,77+(7+58675(9(56(5&2:/6,)
UHWUDFWWRWKHXSSRVLWLRQ 7+(<$5(23(172)$57+,6&$1&$86(,1-85,(6
723(5621625'$0$*(72(48,30(17
(DFKZLQJKDVDQLQERDUGVODWDNUXHJHUIODSDQGVL[
RXWERDUGVODWV &$87,21 0$.(685(7+($'3$&&(66'225,6)8//<23(125
)8//<&/26(':+(1<28029(7+(75$,/,1*('*(
6ODW2SHUDWLRQ )/$367+()/$36&$1+,77+('225,),7,6127
)8//<23(125&/26('7+,6&$1&$86('$0$*(72
7KHVODWVRSHUDWHLQVHTXHQFHZLWKWKHIODSV$WFUXLVH (48,30(17
VSHHGDQGDOWLWXGHVODWH[WHQVLRQLVLQKLELWHG
$EEUHYLDWLRQVDQG$FURQ\PV
'XULQJVHFRQGDU\PRGHRSHUDWLRQWKHORDGUHOLHI
IXQFWLRQUHWUDFWVWKHVODWVDWKLJKDLUVSHHG $'3 DLUGULYHQSXPS
$,06 DLUSODQHLQIRUPDWLRQPDQDJHPHQWV\VWHP
7KHDXWRVODWIXQFWLRQH[WHQGVWKHVODWVWRPDNHWKH DOWQ DOWHUQDWH
DLUSODQHVWDOOSHUIRUPDQFHEHWWHUQHDUVWDOO
$2$ DQJOHRIDWWDFN
FRQGLWLRQV
$5,1& $HURQDXWLFDO5DGLR,QF
$6&3& DLUVXSSO\DQGFDELQSUHVVXUHFRQWUROOHU

/($',1*('*(6/$76,1752'8&7,21
(,&$6 HQJLQHLQGLFDWLRQDQGFUHZDOHUWLQJ
V\VWHP
(;7 H[WHQG
)6(8 IODSVODWHOHFWURQLFVXQLW
+<',0 K\GUDXOLFLQWHUIDFHPRGXOH
+/&6 KLJKOLIWFRQWUROV\VWHP
/( OHDGLQJHGJH
/9'7 OLQHDUYDULDEOHGLIIHUHQWLDOWUDQVIRUPHU
0$7 PDLQWHQDQFHDFFHVVWHUPLQDO
3'8 SRZHUGULYHXQLW
UHWU UHWUDFW
VHF VHFRQGDU\
:(8 ZDUQLQJHOHFWURQLFXQLW

6/$76
$783
&58,6(
6($/('
7$.(2))
*$33('
/$1',1*
,1%2$5'
6/$7 .58(*(5
)/$3
/($',1*('*(6/$76,1752'8&7,21

/($',1*('*(6/$76*(1(5$/'(6&5,37,21
7+,63$*(,17(17,21$//</()7%/$1.

/($',1*('*(6/$76*(1(5$/'(6&5,37,21
*HQHUDO $VWKHVODWVPRYHWKHVODWSRVLWLRQVHQVRUVVHQG
IHHGEDFNVLJQDOVWRWKH)6(8V7KH)6(8VVWRSWKHVODW
7KH/(VODWVDQGNUXHJHUIODSVRSHUDWHLQRQHRIWKHVH FRPPDQGVZKHQWKHIHHGEDFNVLJQDOVHTXDOWKHFRPPDQGHG
WKUHHPRGHV SRVLWLRQ
3ULPDU\PRGH 7KH)6(8VXVHGDWDIURPWKHV\VWHPV$5,1&EXVHVIRU
6HFRQGDU\PRGH WKHDXWRVODWIXQFWLRQ7KLVIXQFWLRQFRPPDQGVWKH
$OWHUQDWHPRGH DXWRVODWSULRULW\YDOYHWROLPLWWKHIORZRIK\GUDXOLF
IOXLGWRWKHPDLQODQGLQJJHDUV\VWHP7KLVJLYHV
7KHSULPDU\PRGHXVHVK\GUDXOLFSRZHUWRRSHUDWHWKH SULRULW\RIWKHK\GUDXOLFSRZHUWRWKHVODWVGXULQJ
VODWV7KHVHFRQGDU\DQGDOWHUQDWHPRGHVXVHHOHFWULFDO DXWRVODWRSHUDWLRQ7KHDXWRVODWSULRULW\YDOYHDOVR
SRZHUWRRSHUDWHWKHVODWV JLYHVSULRULW\RIK\GUDXOLFSRZHUWRWKH+/&6RYHUWKH
PDLQODQGLQJJHDUV\VWHPGXULQJQRUPDORSHUDWLRQV
3ULPDU\0RGH
7KH)6(8VXVHWKHVODWVNHZVHQVRUVWRGHWHFWDVODW
7KHSULPDU\PRGHKDVDFORVHGORRSFRQWUROV\VWHP7KH VNHZDQGWKHSRVLWLRQVHQVRUVWRGHWHFWDVODW
SLORWFRPPDQGVWKHVODWVZLWKWKHIODSOHYHU7KHIODS DV\PPHWU\,QHLWKHUFRQGLWLRQWKH)6(8VVWRSWKHVODW
OHYHUSRVLWLRQVHQVRUVHQGVLQSXWVLJQDOVWRWKH)6(8V GULYH
7KH)6(8VXVHWKHIODSOHYHUSRVLWLRQWRFDOFXODWHWKH
VODWFRPPDQGV7KH)6(8VDOVRUHFHLYHGDWDIURPWKH 6HFRQGDU\0RGH
V\VWHPV$5,1&EXVHV
7KH)6(8VXVHWKHVHFRQGDU\PRGHZKHQWKHSULPDU\PRGH
7KH)6(8VVHQGWKHVODWFRPPDQGVWRWKHVODWSULPDU\ GLVHQJDJHV7KHVHFRQGDU\PRGHLVRQO\DYDLODEOHLQWKH
FRQWUROYDOYH7KLVYDOYHVXSSOLHVK\GUDXOLFSRZHUWR DLURUGXULQJVSHFLDOPDLQWHQDQFHIXQFWLRQV
WKHVODWSRZHUGULYHXQLW 3'8 7KHK\GUDXOLFPRWRURQ
WKH3'8WKHQPRYHVWKHVODWPHFKDQLVPV 7KHVHFRQGDU\PRGHDOVRKDVDFORVHGORRSFRQWURO
V\VWHP7KHSLORWFRPPDQGVWKHVODWVZLWKWKHIODS
7KHIODSVODWSULRULW\YDOYHFRQWUROVWKHDPRXQWRI OHYHU7KH)6(8VXVHWKHIODSOHYHUSRVLWLRQWR
K\GUDXOLFIORZWRWKHVODWSULPDU\FRQWUROYDOYH7KH FDOFXODWHWKHVODWFRPPDQGV7KH)6(8VWKHQHQHUJL]H
IODSVODWSULRULW\YDOYHJLYHVSULRULW\RIK\GUDXOLF WKHVHFRQGDU\DOWHUQDWHFRQWUROUHOD\V2QHUHOD\
SRZHUWRWKHSULPDU\IOLJKWFRQWUROV\VWHP 3)&6 RYHU HQHUJL]HVWKHE\SDVVVROHQRLGLQWKHVODWSULPDU\
WKH+/&6 FRQWUROYDOYHDQGWKHFOXWFKLQWKHHOHFWULFPRWRU
XQLW7KLVVWRSVK\GUDXOLFSRZHUWRWKHK\GUDXOLFPRWRU

/($',1*('*(6/$76*(1(5$/'(6&5,37,21
DQGOHWVIUHHIORZWKURXJKLW7KHHOHFWULFPRWRU HOHFWULFDOSRZHUWRWKHVODWHOHFWULFPRWRULQWKH3'8
FOXWFKFRQQHFWVWKHPRWRUVKDIWWRWKH3'8JHDUER[7KH 7KHHOHFWULFPRWRUWKHQPRYHVWKHVODWPHFKDQLVPV
RWKHUUHOD\VFRQWUROHOHFWULFDOSRZHUWRWKHVODW
HOHFWULFPRWRURQWKHVODW3'87KHHOHFWULFPRWRUWKHQ 7KHVODWVPRYHXQWLOWKHSLORWPRYHVWKHDOWHUQDWH
PRYHVWKHVODWPHFKDQLVPV IODSVVHOHFWRUWRWKH2))SRVLWLRQRUWKHVODWOLPLW
VZLWFKVWRSVWKHPRWRUZKHQWKHVODWVDUHDWWKHLU
$VWKHVODWVPRYHWKHVODWSRVLWLRQVHQVRUVVHQG OLPLWV
IHHGEDFNVLJQDOVWRWKH)6(8V7KH)6(8VFRPPDQGWKH
UHOD\VWRVWRSWKHHOHFWULFPRWRUZKHQWKHVODWVDUHDW 7KHUHLVQRDXWRPDWLFVKXWGRZQRIWKHDOWHUQDWHPRGHLI
WKHFRPPDQGHGSRVLWLRQ WKHUHLVDVODWVNHZRUDV\PPHWU\
7KH)6(8VXVHWKHVODWVNHZVHQVRUVWRGHWHFWDVODW
VNHZDQGWKHSRVLWLRQVHQVRUVWRGHWHFWDQDV\PPHWU\RU
GLVDJUHHPHQW,QHLWKHUFRQGLWLRQWKH)6(8VVWRSWKH
VODWGULYH
$OWHUQDWH0RGH
7KHDOWHUQDWHPRGHKDVDQRSHQORRSFRQWUROV\VWHP7KH
SLORWXVHVWKHVZLWFKHVRQWKHDOWHUQDWHIODSVSDQHOWR
FRPPDQGWKHVODWV$QDUPVZLWFKVHQGVDGLVFUHWH
VLJQDOWRWKH)6(8VWRGLVHQJDJHWKHSULPDU\DQG
VHFRQGDU\PRGHV7KHVZLWFKDOVRHQHUJL]HVRQHRIWKH
VHFRQGDU\DOWHUQDWHFRQWUROUHOD\V7KLVUHOD\
HQHUJL]HVWKHE\SDVVVROHQRLGLQWKHVODWSULPDU\
FRQWUROYDOYHDQGWKHFOXWFKLQWKHHOHFWULFPRWRU
7KLVVWRSVK\GUDXOLFSRZHUWRWKHK\GUDXOLFPRWRUDQG
OHWVIUHHIORZWKURXJKLW7KHHOHFWULFPRWRUFOXWFK
FRQQHFWVWKHPRWRUVKDIWWRWKH3'8JHDUER[
7KHDOWHUQDWHIODSVVHOHFWRUVHQGVFRPPDQGVWKURXJKWKH
VODWDQGIODSOLPLWVZLWFKHVWRHQHUJL]HWKHRWKHU
VHFRQGDU\DOWHUQDWHFRQWUROUHOD\V7KHUHOD\VFRQWURO

$/71)/$36
$50
$/71
6(&$/71
&21752/
5(/$<6
2))
&(17(5+<'5$8/,&
5(7 (;7 6<67(0 +<'5$8/,&
(/(&75,&
6/$7$1')/$3 02725 02725
/,0,76:,7&+(6
$8726/$7
35,25,7< )/$36/$7
9$/9( 35,25,7<9$/9(
$/7(51$7(
)/$363$1(/
)/$3
6/$7
83 3'8

)/$3/(9(5
326,7,21
6(1625

6/$735,0$5<
)6(8 &21752/9$/9(
)/$3/(9(5
6/$7326,7,21
6(16256
6/$76.(: /(6/$76$1'
6(16256 .58(*(5)/$36
0(&+$1,&$/
&211(&7,21
+<'5$8/,& 6<67(06$5,1&
&211(&7,21 %86
/($',1*('*(6/$76*(1(5$/'(6&5,37,21

/($',1*('*(6/$76*(1(5$/'(6&5,37,216/$7'5,9(6<67(0
*HQHUDO 7RUTXH7XEH6XSSRUWV
7KHUHDUHVL[RXWERDUGVODWVRQHLQERDUGVODWDQGRQH 7KHWRUTXHWXEHVXSSRUWVKROGWKHWRUTXHWXEHVLQ
NUXHJHUIODSRQHDFKZLQJ7KHVODWVKDYHQXPEHUV SRVLWLRQ
WKURXJKOHIWRXWERDUGWRULJKWRXWERDUG
$QJOH*HDUER[HV
7KHVHDUHWKHFRPSRQHQWVRIWKHVODWGULYHV\VWHP
7KHDQJOHJHDUER[HVFRQQHFWWRUTXHWXEHVWKDWDUHDW
6ODW3'8 GLIIHUHQWDQJOHVWRHDFKRWKHU
7RUTXHWXEHV
7RUTXHWXEHVXSSRUWV 2IIVHW*HDUER[HV
$QJOHJHDUER[HV
'ULYHOLQHRIIVHWJHDUER[HV 7KHGULYHOLQHRIIVHWJHDUER[HVFRQQHFWWRUTXHWXEHV
1REDFNEUDNHRIIVHWJHDUER[HV WKDWDUHRIIVHWIURPHDFKRWKHU
.UXHJHUIODSRIIVHWJHDUER[HV
5RWDU\DFWXDWRUV 7KHQREDFNEUDNHRIIVHWJHDUER[HVVHQGSRZHUIURPWKH
6ODWPDLQWUDFNV WRUTXHWXEHVWRWKHVODWURWDU\DFWXDWRUV7KHVH
JHDUER[HVDOVRKHOSSUHYHQWUHWUDFWLRQRIWKHVODWV
6ODW3'8 EHFDXVHRIDLUORDGV
7KHVODW3'8JHWVK\GUDXOLFSRZHUWKURXJKWKHSULPDU\ 7KHNUXHJHUIODSRIIVHWJHDUER[HVVHQGSRZHUIURPWKH
FRQWUROYDOYHDQGHOHFWULFSRZHUWKURXJKWKHVODW WRUTXHWXEHVWRWKHNUXHJHUIODSURWDU\DFWXDWRUV
H[WHQGUHWUDFWUHOD\V+\GUDXOLFDQGHOHFWULFPRWRUVRQ
WKH3'8PRYHWKHVODWGULYHV\VWHP7KHVODW3'8DOVR 5RWDU\$FWXDWRUV
FRQWDLQVWKHVODWOLPLWVZLWFK7KHVZLWFKUHPRYHV
HOHFWULFDOSRZHUIURPWKHHOHFWULFPRWRUZKHQWKHVODWV 7KHVODWURWDU\DFWXDWRUVPRYHWKHVODWPDLQWUDFNV
PRYHWRWKHLUOLPLWGXULQJRSHUDWLRQLQWKHDOWHUQDWH 7KHNUXHJHUIODSURWDU\DFWXDWRUVPRYHWKHNUXHJHU
PRGH IODS
7RUTXH7XEHV 6ODW0DLQ7UDFNV
7KHWRUTXHWXEHVWUDQVPLWSRZHUIURPWKH3'8WRWKH $VWKHVODWURWDU\DFWXDWRUVWXUQWKHVODWPDLQWUDFNV
VODWDFWXDWLRQDVVHPEOLHV PRYHWKHVODWV

$1*/(
*($5%2;
,1%2$5'6/$7
.58(*(5)/$3
.58(*(5)/$3
2))6(7*($5%2;
6/$73'8
287%2$5'6/$76 /()7:,1*21/<
'5,9(/,1(
2))6(7
*($5%2;
6/$70$,1
75$&.
6/$7
527$5<
$&78$725
12%$&.%5$.(
2))6(7*($5%2;
72548(78%(
72548(78%(
6833257
326,7,21
6(16256
127(7+(/()76/$76$5(6+2:1
7+(5,*+76/$76$5($/02677+(6$0(
/($',1*('*(6/$76*(1(5$/'(6&5,37,216/$7'5,9(6<67(0

/($',1*('*(6/$76&20321(17/2&$7,216
*HQHUDO DFFHVVSDQHOVXQGHUWKHZLQJVWRJHWDFFHVVWRWKHVH
FRPSRQHQWV
7KHVODWFRPSRQHQWVDUHLQWKHVHDUHDV
7KHVHFRPSRQHQWVDUHLQWKHIL[HGOHDGLQJHGJHRIWKH
7KHPDLQODQGLQJJHDUZKHHOZHOOV ZLQJV
7KHIRUZDUGFDUJRFRPSDUWPHQW
7KHZLQJV 1REDFNEUDNHRIIVHWJHDUER[HV
5RWDU\DFWXDWRUV
0DLQ/DQGLQJ*HDU:KHHO:HOO&RPSRQHQWV 6ODWPDLQWUDFNV
6RPHRIWKHWRUTXHWXEHVXSSRUWV
7KHVODWSULPDU\FRQWUROYDOYHLVRQWKHNHHOEHDPLQ 'ULYHOLQHRIIVHWJHDUER[HV
WKHOHIWPDLQODQGLQJJHDUZKHHOZHOO7KHDXWRVODW
SULRULW\YDOYHLVRQWKHFHLOLQJLQWKHULJKWPDLQ 5HPRYHWKHDFFHVVSDQHOVXQGHUWKHZLQJVWRJHWDFFHVV
ODQGLQJJHDUZKHHOZHOO WRWKHVHFRPSRQHQWV
)RUZDUG&DUJR&RPSDUWPHQW&RPSRQHQWV 7KHLQERDUGVODWVNUXHJHUIODSVDQGRXWERDUGVODWV
DUHRQWKHOHDGLQJHGJHRIWKHZLQJV7KHNUXHJHUIODS
7KHVHFRPSRQHQWVDUHDERYHDQGWRWKHVLGHVRIWKHDIW LVEHWZHHQWKHLQERDUGVODWDQGWKHHQJLQHVWUXW
VHFWLRQRIWKHIRUZDUGFDUJRFRPSDUWPHQW
7KHIORRUDQJOHJHDUER[HV
7RUTXHWXEHV
<RXUHPRYHWKHFDUJROLQLQJLQWKHDIWVHFWLRQRIWKH
IRUZDUGFDUJRFRPSDUWPHQWWRJHWDFFHVVWRWKH
FRPSRQHQWV
:LQJ&RPSRQHQWV
7KHVODW3'8DQGRQHRIWKHVWUDNHOHWDQJOHJHDUER[HV
DUHLQWKHOHIWZLQJURRW7KHRWKHUVWUDNHOHWDQJOH
JHDUER[LVLQWKHULJKWZLQJURRW<RXUHPRYHWKH

)/225$1*/(
*($5%2;
72548(78%( '5,9(/,1(2))6(7
6/$73'8 *($5%2;
675$.(/(7$1*/(*($5%2;
,1%2$5'6/$7
.58(*(5)/$3
$8726/$735,25,7<
9$/9(
6/$735,0$5<
&21752/9$/9(
0$,1/$1',1**($5
:+((/:(//
12%$&.%5$.(2))6(7*($5%2;
527$5<$&78$725
6/$70$,175$&.
/($',1*('*(6/$76&20321(17/2&$7,216

/($',1*('*(6/$76)81&7,21$/'(6&5,37,21$8726/$7(;7(16,21
*HQHUDO 6HHWKHSQHXPDWLFFKDSWHUIRUPRUHLQIRUPDWLRQ
DERXWWKH$6&3&VDQGWKHSQHXPDWLFV\VWHP $7$
7KHDXWRVODWH[WHQVLRQIXQFWLRQPDNHVWKHZLQJVWDOO
SHUIRUPDQFHEHWWHULIWKHDLUSODQHJHWVQHDUDVWDOO )LYHVHFRQGVDIWHUWKH:(8UHPRYHVWKHDXWRVODW
FRQGLWLRQ7KLVIXQFWLRQDOVRPDNHVVXUHWKHVODWVJHW UHTXHVWWKH)6(8VJLYHWKHVODWVDFRPPDQGWRJREDFN
HQRXJKK\GUDXOLFSRZHUZKHQWKHDXWRVODWIXQFWLRQLV WRWKHLUFRPPDQGHGSRVLWLRQDQGGHHQHUJL]HWKHVROHQRLG
DFWLYH LQWKHDXWRVODWSULRULW\YDOYH
$XWRVODW ,QGLFDWLRQ
7KHDXWRVODWIXQFWLRQRSHUDWHVRQO\LQWKHSULPDU\ 7KHUHDUHQRPHVVDJHVWRVKRZWKDWWKHDXWRVODW
PRGHZLWKWKHVODWVLQWKHVHDOHGSRVLWLRQ7KLV IXQFWLRQLVDFWLYH7KHRQO\LQGLFDWLRQLVRQWKH
IXQFWLRQGRHVQRWRSHUDWHLIWKHDLUVSHHGLVPRUHWKDQ IODSVODWSRVLWLRQLQGLFDWLRQRQWKH(,&$6GLVSOD\DQG
NQRWV WKH(,&$6FRPSDFWHGHQJLQHGLVSOD\7KHWDSHLQWKH
LQGLFDWLRQVKRZVPRUHWKDQWKHFRPPDQGHGSRVLWLRQ7KH
7KHZDUQLQJHOHFWURQLFVXQLW :(8 VHQGVDQDXWRVODW FRORURIWKHFRPPDQGEDUDQGWKHGHWHQWQXPEHUFKDQJH
UHTXHVWWRWKH)6(8VLIWKHDLUSODQHJHWVQHDUDVWDOO WRPDJHQWD
FRQGLWLRQ,IWKHIODSOHYHULVLQWKHRU
XQLWSRVLWLRQVDWWKLVWLPHWKH)6(8VJLYHWKHVODWVD
FRPPDQGWRH[WHQGWRWKHJDSSHGSRVLWLRQ$WWKLVVDPH
WLPHWKH)6(8VHQHUJL]HWKHVROHQRLGLQWKHDXWRVODW
SULRULW\YDOYH7KLVGHFUHDVHVWKHK\GUDXOLFIORZWR
WKHODQGLQJJHDUV\VWHPVVRPRUHK\GUDXOLFSRZHUFDQ
JRWRWKHVODWV
7KH:(8DOVRVHQGVDQDXWRVODWUHTXHVWWRWKH+<',0
FDUGVDQGWKHDLUVXSSO\FDELQSUHVVXUHFRQWUROOHUV
$6&3&V 7KH+<',0FDUGVSXWRQWKHWZRDLUGULYHQ
SXPSV $'3V 7KH$6&3&VRSHUDWHVRPHSQHXPDWLFYDOYHV
WRPDNHVXUHWKH$'3VJHWHQRXJKDLUSRZHU
6HHWKHPDLQK\GUDXOLFV\VWHPVHFWLRQIRUPRUH
LQIRUPDWLRQDERXWWKHFHQWHUK\GUDXOLFV\VWHP $7$

$8726/$7
5(48(67
:(8
$,563((' 6/$735,0$5<
$,06 &21752/9$/9(
&$%,1(7
$8726/$7
(;7(16,21
+<',0
&$5' $8726/$7
35,25,7<9$/9(
)6(8
$6&3&
6<67(06 &200$1'%$5
$5,1&
%86(6
7$3(
)
/ '(7(17
$ 180%(5
3
6
(,&$6',63/$<
/($',1*('*(6/$76)81&7,21$/'(6&5,37,21$8726/$7(;7(16,21

/($',1*('*(6/$76)81&7,21$/'(6&5,37,216(&21'$5<02'(/2$'5(/,()
*HQHUDO
7KHVODWORDGUHOLHIIXQFWLRQSUHYHQWVGDPDJHWRWKH
VODWVDQGWKHLUVXSSRUWVWUXFWXUHVIURPODUJH
DHURG\QDPLFIRUFHV6ODWORDGUHOLHISXWVOLPLWVRQWKH
SRVLWLRQRIWKHVODWVDVDIXQFWLRQRIDLUVSHHG
6ODWORDGUHOLHIRSHUDWHVLQWKHVHFRQGDU\PRGHRQO\
/RDG5HOLHI6HFRQGDU\0RGH
,QWKHVHFRQGDU\PRGHORDGUHOLHILVDFWLYHLIWKH
IODSOHYHULVQRWLQWKHXSSRVLWLRQDQGWKHDLUVSHHG
LVPRUHWKDQNQRWV,IWKHIODSOHYHULVQRWLQWKH
XSSRVLWLRQWKHVODWVUHWUDFWWRWKHVHDOHGSRVLWLRQ
7KHORDGUHOLHIFRPPDQGGRHVDUHVHWLIWKHDLUVSHHGLV
OHVVWKDQNQRWVRUWKHSLORWPRYHVWKHIODSOHYHU
WRXS,IWKHIODSOHYHULVQRWLQWKHXSSRVLWLRQWKH
VODWVH[WHQGWRWKHJDSSHGSRVLWLRQ
,QGLFDWLRQ
:KHQVODWORDGUHOLHILVDFWLYHWKH/2$'5(/,()
PHVVDJHVKRZVRQWKH(,&$6GLVSOD\,WDOVRVKRZVRQ
WKH(,&$6FRPSDFWHGHQJLQHGLVSOD\
7KHIODSVODWSRVLWLRQLQGLFDWLRQVKRZVWKHSRVLWLRQRI
WKHIODSOHYHUDQGWKHSRVLWLRQRIWKHVODWV'XULQJ
VODWORDGUHOLHIWKHFRPPDQGEDUDQGGHWHQWQXPEHU
FKDQJHIURPJUHHQWRPDJHQWD7KHWDSHVKRZVWKH
SRVLWLRQRIWKHVODWV

'(7(17
180%(5
/2$'5(/,()
&200$1' ,1',&$7,21
%$5
7$3(
)
/ /2$'
$ 5(/,()
3
6
*$33('
6/$7/2$'
5(/,()
6/$7
326,7,21
6($/('
83

$,563((' .1276
6/$7/2$'5(/,()6(&21'$5<02'( 6(&21'$5<02'(',63/$< (,&$6
/($',1*('*(6/$76)81&7,21$/'(6&5,37,216(&21'$5<02'(/2$'5(/,()

6/$7326,7,21,1',&$7,21*(1(5$/'(6&5,37,21
3XUSRVH $OWHUQDWHPRGHGLVSOD\
7KHVODWSRVLWLRQLQGLFDWLRQV\VWHPPHDVXUHVWKH )DLOXUH'HWHFWLRQ
SRVLWLRQRIWKHVODWVDQGVHQGVWKLVGDWDWRWKH)6(8V
7KH)6(8VXVHWKLVGDWDIRU 0RQLWRUVLQWKH)6(8VFRPSDUHWKHVODWSRVLWLRQGDWDWR
WKHVODWFRPPDQGV7KHVHPRQLWRUVILQGIDLOXUHVLQWKH
6ODWFRQWURO +/&6DQGWKHVODWGULYHV\VWHP
)ODSVODWSRVLWLRQLQGLFDWLRQ
)DLOXUHGHWHFWLRQ
6ODW&RQWURO
7KH)6(8VXVHWKHVODWSRVLWLRQGDWDGXULQJWKHVODW
RSHUDWLRQLQWKHSULPDU\DQGVHFRQGDU\PRGHV7KHVH
PRGHVKDYHFORVHGORRSFRQWURORIWKHVODWV&ORVHG
ORRSFRQWUROVWRSVWKHVODWFRPPDQGZKHQWKHVODW
SRVLWLRQHTXDOVWKHFRPPDQG
)ODS6ODW3RVLWLRQ,QGLFDWLRQ
7KH)6(8VVHQGWKHVODWSRVLWLRQGDWDWRWKHDLUSODQH
LQIRUPDWLRQPDQDJHPHQWV\VWHP $,06 7KH$,06XVHV
WKLVGDWDWRGLVSOD\WKHIODSVODWSRVLWLRQLQGLFDWLRQ
RQWKH(,&$6GLVSOD\RUWKH(,&$6FRPSDFWHGHQJLQH
GLVSOD\
7KH)6(8VVHQGWKHVODWSRVLWLRQGDWDWRWKH$,06
ZKHQHYHUWKHGDWDLVYDOLG7KLVSHUPLWVIODSVODW
SRVLWLRQLQGLFDWLRQLQDOOWKUHH+/&6PRGHV7KHWKUHH
IODSVODWSRVLWLRQLQGLFDWLRQVDUH
3ULPDU\PRGHGLVSOD\
6HFRQGDU\PRGHGLVSOD\

$,06
&$%,1(76
6/$7326,7,216(16256 )6(8 6<67(06 (1*,1(',63/$<25

$5,1& (,&$6&203$&7('
%86 (1*,1(',63/$<
)
/ ) )
$ / /
3 $ $
6 3 3
6 6
35,0$5<02'(',63/$< 6(&21'$5<02'(',63/$< $/7(51$7(02'(',63/$<
6/$7326,7,21,1',&$7,21*(1(5$/'(6&5,37,21

+,*+/,)7&21752/,1',&$7,216326,7,21',63/$<6
7+,63$*(,17(17,21$//</()7%/$1.

+,*+/,)7&21752/,1',&$7,216326,7,21',63/$<6
*HQHUDO 6HFRQGDU\0RGH'LVSOD\
7KHIODSDQGVODWSRVLWLRQGLVSOD\LVRQWKH(,&$6 7KHVHFRQGDU\PRGHGLVSOD\VKRZVZKHQHLWKHUWKHIODSV
GLVSOD\RUWKH(,&$6FRPSDFWHGHQJLQHGLVSOD\7KHUH RUVODWVDUHLQWKHVHFRQGDU\PRGH7KLVGLVSOD\KDV
DUHWKUHHGLIIHUHQWGLVSOD\VIRUWKHIODSVDQGVODWV VHSDUDWHLQGLFDWLRQVIRU
3ULPDU\ 7KHOHIWZLQJIODSV
6HFRQGDU\ 7KHULJKWZLQJIODSV
$OWHUQDWH 7KHOHIWZLQJVODWV
7KHULJKWZLQJVODWV
2QO\RQHGLVSOD\VKRZVDWDWLPH
7KHWZRXSSHULQGLFDWLRQVVKRZWKHVODWSRVLWLRQV7KH
3ULPDU\0RGH'LVSOD\ WZRORZHULQGLFDWLRQVVKRZWKHIODSSRVLWLRQV$OOIRXU
LQGLFDWLRQVDUHEODFNZKHQWKHIODSVDQGVODWVDUH
7KHSULPDU\PRGHGLVSOD\VKRZVZKHQERWKWKHIODSVDQG IXOO\UHWUDFWHG:KHQWKHVODWVH[WHQGDZKLWHWDSH
VODWVDUHLQWKHSULPDU\PRGH7KLVGLVSOD\VKRZVWKH ILOOVWKHXSSHULQGLFDWLRQVIURPWKHERWWRPXS:KHQ
SRVLWLRQRIERWKWKHIODSVDQGVODWV7KHGLVSOD\LV WKHIODSVH[WHQGDZKLWHWDSHILOOVWKHORZHU
EODFNZKHQWKHIODSVDQGVODWVDUHIXOO\UHWUDFWHG LQGLFDWLRQVIURPWKHWRSGRZQ
:KHQWKHIODSVRUVODWVH[WHQGDZKLWHWDSHILOOVWKH
GLVSOD\IURPWKHWRSGRZQ 7KHVHFRQGDU\PRGHGLVSOD\VKRZVDFRPPDQGEDUDQG
GHWHQWQXPEHU7KHVHRSHUDWHWKHVDPHDVIRUWKH
$FRPPDQGEDUDQGGHWHQWQXPEHUVKRZWKHIODSOHYHU SULPDU\PRGHGLVSOD\
SRVLWLRQ:KHQ\RXPRYHWKHIODSOHYHUWKHIODSOHYHU
GHWHQWQXPEHUDQGFRPPDQGEDUVKRZ:KLOHWKHIODSVDQG $IWHUWKHIODSVDQGVODWVDUHIXOO\UHWUDFWHGWKH
VODWVPRYHWKHFRPPDQGEDUDQGGHWHQWQXPEHUDUH VHFRQGDU\PRGHGLVSOD\JRHVRXWRIYLHZDQGWKHSULPDU\
PDJHQWD:KHQWKHIODSVDQGVODWVDUHLQWKHIODSOHYHU PRGHGLVSOD\VKRZV$IWHUVHFRQGVWKHSULPDU\PRGH
FRPPDQGHGSRVLWLRQWKHFRPPDQGEDUDQGGHWHQWQXPEHU GLVSOD\DOVRJRHVRXWRIYLHZ
FKDQJHWRJUHHQ
,IWKHIODSV RUVODWV GULYHV\VWHPIDLOVWKHUHODWHG
7KHSULPDU\PRGHGLVSOD\JRHVRXWRIYLHZVHFRQGV LQGLFDWLRQVFKDQJHIURPZKLWHWRDPEHU
DIWHUWKHIODSVDQGVODWVDUHIXOO\UHWUDFWHG
,IWKHOHIW RUULJKW VODWSRVLWLRQGDWDLVLQYDOLG
WKHOHIW RUULJKW XSSHUWDSHDQGFRPPDQGEDUJRRXW

+,*+/,)7&21752/,1',&$7,216326,7,21',63/$<6
RIYLHZ,IWKHOHIW RUULJKW IODSSRVLWLRQGDWDLV
LQYDOLGWKHOHIW RUULJKW ORZHUWDSHDQGFRPPDQGEDU
JRRXWRIYLHZ,IWKHIODSOHYHUSRVLWLRQGDWDLV
LQYDOLGWKHGHWHQWQXPEHUJRHVRXWRIYLHZ
$OWHUQDWH0RGH'LVSOD\
7KHDOWHUQDWHPRGHGLVSOD\VKRZVZKHQ\RXSXVKWKH
DOWHUQDWHIODSVDUPVZLWFK
7KHDOWHUQDWHPRGHGLVSOD\KDVDOPRVWWKHVDPHIRUPDW
DVWKHVHFRQGDU\PRGHGLVSOD\7KHGLIIHUHQFHLVWKDW
WKHDOWHUQDWHPRGHGLVSOD\GRHVQRWKDYHWKHFRPPDQG
EDUEXWKDVWLFNPDUNVDQGUHIHUHQFHGHWHQWQXPEHUVWR
LGHQWLI\WKHIODSDQGVODWSRVLWLRQV
,IWKHOHIW RUULJKW VODWSRVLWLRQGDWDLVLQYDOLG

WKHOHIW RUULJKW XSSHUWDSHDQGWLFNPDUNVJRRXWRI
YLHZ,IWKHOHIW RUULJKW IODSSRVLWLRQGDWDLV
LQYDOLGWKHOHIW RUULJKW ORZHUWDSHWLFNPDUNV
DQGUHIHUHQFHGHWHQWQXPEHUVJRRXWRIYLHZ

$385811,1*
'2:1

*($5
)/$3$1'6/$7
(*7 326,7,21',63/$<$5($
'8&735(66 ):' $)7

23
&$%$/7 5$7( 0 + /%6;
727$/)8(/
/'*$/7 0$1 3
&/
(,&$6',63/$<25
(,&$6&203$&7('(1*,1(',63/$<
&200$1'%$5 ,19$/,'6/$7 7,&.0$5.6

326,7,21'$7$
&200$1'%$5
)
/ ) ) 5()(5(1&(
$ / ,19$/,')/$3 / '(7(17180%(56
3 $ 326,7,21'$7$ $
6 3 3
'(7(17180%(5 6 6
35,0$5<02'(',63/$< 6(&21'$5<02'(',63/$< $/7(51$7(02'(',63/$<
+,*+/,)7&21752/,1',&$7,216326,7,21',63/$<6

+,*+/,)7&21752/,1',&$7,2160$,17(1$1&(3$*()250$7
*HQHUDO $/71$50WKHDOWHUQDWHPRGHLVDUPHG
/2$',1*WKH)6(8LVORDGLQJVRIWZDUH
7KHKLJKOLIWPDLQWHQDQFHSDJHIRUPDWVKRZVGDWDIURP 7(67WKH)6(8LVLQWHVW
HDFK)6(87KLVLQFOXGHVWKHIROORZLQJGDWD )$8/7WKH)6(8KDVGHWHFWHGDODQHIDXOW
67$1'%<QRQHRIWKHRWKHUVWDWXVZRUGVDUH
6\VWHPV$5,1&GDWDEXVHV DSSOLFDEOH
)ODSOHYHUSRVLWLRQVHQVRUV
6ODWFRPPDQGV 7KHSDJHWKHQVKRZVWKHDLUVSHHGLQNQRWVDQGWKH
6ODWSRVLWLRQVHQVRUV FHQWHUK\GUDXOLFV\VWHPSUHVVXUHLQSVL,IWKLVGDWD
6ODWVNHZVHQVRUV LVLQYDOLGWKHUHLVQRLQGLFDWLRQ
)ODSFRPPDQGV
)ODSSRVLWLRQVHQVRUV %HORZWKHVHDUHWKHVWDWXVRIWKHFRPPDQGVIRU
)ODSVNHZVHQVRUV DXWRVODWORDGUHOLHIDQGWRWKHDXWRVODWSULRULW\
YDOYHV$WWKHERWWRPRIWKLVOLVWLVWKHDLUJURXQG
7KHUHDUHWKUHHGLIIHUHQWGLVSOD\PRGHV VWDWXV
5HDOWLPHPRGH )ODS/HYHU3RVLWLRQ6HQVRU
0DQXDOHYHQWPRGH
$XWRHYHQWPRGH 7KHWRSOHIWRIWKHSDJHVKRZVWKHYROWDJHRIHDFK59'7
LQWKHIODSOHYHUSRVLWLRQVHQVRU,IVRPHRIWKLVGDWD
7KHZRUG0$18$/RU$872DWWKHWRSRIWKHSDJH LVLQYDOLGWKHUHLVQRLQGLFDWLRQIRUWKHEDGYDOXH
LGHQWLILHVWKHPDQXDORUDXWRHYHQWSDJH7KHPHVVDJH
WKDWFDXVHGWKHDXWRHYHQWLVDWERWWRPOHIWRIWKH 6ODW&RPPDQGV
SDJH7KHWLPHRIWKHHYHQWLVDWWKHERWWRPULJKW
7KHOHIWFHQWHURIWKHSDJHVKRZVWKHVWDWXVRIWKH
6\VWHPV$5,1&'DWD%XVHV VODWFRPPDQGVIURPWKH)6(8LQFRQWURO7KHVWDWXVRI
WKHVODWVGULYHFRPPDQGLVRQHRIWKHIROORZLQJ
7KHWRSRIWKHSDJHVKRZVGDWDWKDWHDFK)6(8UHFHLYHV
IURPWKHV\VWHPV$5,1&GDWDEXVHV7KHILUVWURZ 35,(;7WKHVODWVDUHFRPPDQGHGWRH[WHQGLQWKH
VKRZVWKHFRQWUROVWDWXVRIHDFK)6(87KHVWDWXVRI SULPDU\PRGH
WKH)6(8LVRQHRIWKHIROORZLQJ 35,5(7WKHVODWVDUHFRPPDQGHGWRUHWUDFWLQWKH
SULPDU\PRGH
,1&21752/WKH)6(8LVLQFRQWURORIWKH+/&6

+,*+/,)7&21752/,1',&$7,2160$,17(1$1&(3$*()250$7
6(&(;7WKHVODWVDUHFRPPDQGHGWRH[WHQGLQWKH ,IVRPHRIWKLVGDWDLVLQYDOLGWKHUHLVQRLQGLFDWLRQ
VHFRQGDU\PRGH IRUWKHEDGYDOXH
6(&5(7WKHVODWVDUHFRPPDQGHGWRUHWUDFWLQWKH
VHFRQGDU\PRGH )ODS&RPPDQGV
7KHVWDWXVRIWKHVODWGULYHPRGHLVRQHRIWKH 7KHERWWRPOHIWRIWKHSDJHVKRZVWKHVWDWXVRIWKH
IROORZLQJ IODSFRPPDQGVIURPWKH)6(8LQFRQWURO7KHVWDWXVRI
WKHIODSGULYHFRPPDQGLVRQHRIWKHIROORZLQJ
/263'WKHVODWVDUHPRYLQJDWORZVSHHGLQWKH
SULPDU\PRGH 35,(;7WKHIODSVDUHFRPPDQGHGWRH[WHQGLQWKH
+,63'WKHVODWVDUHPRYLQJDWKLJKVSHHGLQWKH SULPDU\PRGH
SULPDU\PRGH 35,5(7WKHIODSVDUHFRPPDQGHGWRUHWUDFWLQWKH
&/87&+WKHHOHFWULFPRWRUFOXWFKLVHQJDJHG SULPDU\PRGH
6(&(;7WKHIODSVDUHFRPPDQGHGWRH[WHQGLQWKH
7KHVWDWXVRIWKHVKXWRIIYDOYHFRPPDQGLVHLWKHU23(1 VHFRQGDU\PRGH
RU&/26(' 6(&5(7WKHIODSVDUHFRPPDQGHGWRUHWUDFWLQWKH
VHFRQGDU\PRGH
6ODW3RVLWLRQ6HQVRUV
7KHVWDWXVRIWKHIODSVGULYHPRGHLVRQHRIWKH
7KHULJKWFHQWHURIWKHSDJHVKRZVWKHSRVLWLRQRIWKH IROORZLQJ
VODWSRVLWLRQVHQVRUVLQGHJUHHVRIVHQVRUURWDWLRQ,I
VRPHRIWKLVGDWDLVLQYDOLGWKHUHLVQRLQGLFDWLRQ /263'WKHIODSVDUHPRYLQJDWORZVSHHGLQWKH
IRUWKHEDGYDOXH SULPDU\PRGH
+,63'WKHIODSVDUHPRYLQJDWKLJKVSHHGLQWKH
6ODW6NHZ6HQVRUV SULPDU\PRGH
&/87&+WKHHOHFWULFPRWRUFOXWFKLVHQJDJHG
7KHFHQWHURIWKHSDJHVKRZVWKHVWDWXVRIWKHVODW
VNHZVHQVRUV7KHSDJHVKRZVRQHRIWKHIROORZLQJIRU 7KHVWDWXVRIWKHVKXWRIIYDOYHFRPPDQGLVHLWKHU23(1
HDFKVHQVRU RU&/26('
1($5WKHWDUJHWLVQHDUWKHVHQVRU
)$5WKHWDUJHWLVIDUIURPWKHVHQVRU
)$,/WKHVHQVRULVGHIHFWLYH

+,*+/,)7&21752/,1',&$7,2160$,17(1$1&(3$*()250$7
)ODS3RVLWLRQ6HQVRUV
7KHERWWRPULJKWRIWKHSDJHVKRZVWKHSRVLWLRQRIWKH
IODSSRVLWLRQVHQVRUVLQGHJUHHVRIVHQVRUURWDWLRQ,I
VRPHRIWKLVGDWDLVLQYDOLGWKHUHLVQRLQGLFDWLRQ
IRUWKHEDGYDOXH
)ODS6NHZ6HQVRUV
7KHERWWRPRIWKHSDJHVKRZVWKHYROWDJHRIWKHIODS
VNHZVHQVRUVLQYROWV,IVRPHRIWKLVGDWDLVLQYDOLG
WKHUHLVQRLQGLFDWLRQIRUWKHEDGYDOXH

)/$36/$7
BBBBBBBBB $872
)6(8 )6(8
67$786 67$1'%< ,1&21752/
)/$3/(9(5 $,563(('
$ &6<635(66
% $8726/$7 &0' 127&0'
$ /2$'5(/,() 127&0' &0'
% 35,25,7<9/9 23(1 &/26('
$,5*1' $,5 $,5
6/$76 6/$7326
'5,9(&0' 35,(;7 / 5
02'( /263'
629/9&0' &/26('
6/$7 6/$7 6/$7 6/$7
$ )$5 287%' ,1%' ,1%' 287%' $ )$,/
% 1($5 $ )$5 )$5 $ )$,/ )$5 % 1($5
% 1($5 1($5 % 1($5 1($5
)/$36 )/$3326
'5,9(&0' 35,(;7 / 5
02'( /263'
629/9&0' &/26('
287%')/$3 ,1%')/$3 ,1%')/$3 287%')/$3
/ / / / 5 5 5 5
$ $ $ $
% % % %
6/$76'5,9( '$7( -81 87&
+,*+/,)7&21752/,1',&$7,2160$,17(1$1&(3$*()250$7


Ata 27

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ata 27

Uploaded by

Copyright:

Available Formats

Boeing 777-200/300 (GE 90 & RR TRENT 800 & PW 4000)

General Familiarisation & ATAs of Cabin Interior GENERAL FAMILIARISATION

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 380

7KHSULPDU\IOLJKWFRQWUROV\VWHP 3)&6 FRQWUROVWKH 7KH3)&6DOVRLQFOXGHVWKHVSHHGEUDNHV7KHVSRLOHUV

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 381

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 382

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 383

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 384

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 385

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 386

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 387

7KHWKUHHSULPDU\IOLJKWFRPSXWHUV 3)&V DQGWKHIRXU 7KHWZR$,06FDELQHWVUHFHLYHGDWDIURPDOOWKUHH

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 388

7KHDLUGDWDLQHUWLDOUHIHUHQFHV\VWHP $',56 FRQVLVWV

6L[DLUGDWDPRGXOHV $'0V VXSSO\SLWRWDQGVWDWLFDLU

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 389

/3)& &3)& 53)&

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 390

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 391

30* 30* 30* 30*

/9'&%86 +27%$77(5<%86 &$37)/7,167%86 59'&%86

)&'& )&'& )&'&

/36$ &36$ 536$

/3)& /$&( /$&( &3)& &$&( 53)& 5$&(

3&8 3&8 3&8 3&8

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 392

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 393

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 394

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 395

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 396

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 397

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 398

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 399

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 400

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 401

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 402

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 403

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 404

7KHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V 7KH3)&VVHQGFROXPQZKHHODQGUXGGHUSHGDOEDFNGULYH

,QPDQXDOFRQWURO QRDXWRSLORWHQJDJHG WKH3)&V

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 405

$)'&  3)&  $&( 

%$&.'5,9( %$&.'5,9( 326,7,21

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 406

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 407

7KHSLORWVPDQXDOO\JLYHFRPPDQGVWRWKHDLOHURQVDQG :KHQWKHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 408

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 409

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 410

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 411

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 412

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 413

:+((/ :+((/ :+((/

/$&( &$&( 5$&( /$&(

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 414

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 415

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 416

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 417

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 418

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 419

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 420

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 421

ISSUE 1, 11 NOV 2022 FOR TRAINING PURPOSES ONLY Page: 422

7KHSULPDU\IOLJKWFRQWUROV\VWHP 3)&6 FRQWUROVWKH 7KH3)&6DOVRLQFOXGHVWKHVSHHGEUDNHV7KHVSRLOHUV

/9'&%86 +27%$77(5<%86 &$37)/7,167%86 59'&%86

/3)& /$&( /$&( &3)& &$&( 53)& 5$&(

7KHDXWRSLORWIOLJKWGLUHFWRUFRPSXWHUV $)'&V 7KH3)&VVHQGFROXPQZKHHODQGUXGGHUSHGDOEDFNGULYH

,QPDQXDOFRQWURO QRDXWRSLORWHQJDJHG WKH3)&V

$)'& 3)& $&(

/$&( &$&( 5$&( /$&(

%$&.'5,9( $)'& 3)& $,06&$%,1(7 $',58

3)& / )((/

7ZRVWDELOL]HUWULPFRQWUROPRGXOHV 67&0V UHFHLYH ,IWKHUHLVDQXQFRPPDQGHGSLWFKWULPWKH3)&VJLYHD

67$%,/,=(5326,7,21 $&( 3)&

52//5$7( <$:5$7( $/7

67$%,/,=(5 '$7( -$1 87&

62/ )/$335,0$5< 62/

6/$7&200$1' 62/ 6/$735,0$5< 62/ 6/$7&200$1'