Professional Documents
Culture Documents
,QVWDOODWLRQ0DQXDO
833,QVWDOODWLRQ0DQXDO
,1752'8&7,21
$WWKHKHDUWRIWKH833V\VWHPLVDVLPSOHDQGKLJKO\HIÀFLHQWLQVWDOODWLRQSURFHGXUH
7KH(OHFWURIXVLRQV\VWHPDQGLQVWDOODWLRQSURFHGXUHLVH[SODLQHGLQGHWDLORQWKHIROORZLQJ
SDJHV
,WLVRISDUDPRXQWLPSRUWDQFHWKDWWKHVHLQVWUXFWLRQVDUHDGKHUHGWR
IDLOXUHWRGRVRFDQUHVXOWLQWKHUHPRYDORIFHUWLÀHG,QVWDOOHUVWDWXV
$OOSLSHVPXVWEHFXWVTXDUH
$OOSLSHVDQGVSLJRWHGÀWWLQJVPXVW
EHVFUDSHG
$OOSLSHVÀWWLQJVDQGZHOGLQJVRFNHWV
PXVWEHFOHDQHGZLWKDFHWRQH
$OOMRLQWVVKRXOGKDYHWKHSLSH
LQVHUWHGLQWRWKHHOHFWURIXVLRQÀWWLQJ
HQVXULQJWKDWWKHPDUNHGLQVHUWLRQ
GHSWKLVUHDFKHG
-RLQWVPXVWQRWEHXQGHUDQ\VWUHVV
GXULQJZHOGLQJRUXQWLODPELHQW
WHPSHUDWXUHLVUHDFKHGDIWHUZHOGLQJ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
833,QVWDOODWLRQ0DQXDO
&217(176
6HFWLRQ 7LWOH 3DJH
7UDQVSRUW/RDGLQJDQG6WRUDJH
7UDQVLWRQORDGLQJDQGRIIORDGLQJ
6WRUDJHRQVLWH
6XPPDU\RIUXOHV
8QFRLOLQJ3LSH
6LWH3UHSDUDWLRQ
*HWWLQJVWDUWHG
'LJJLQJWUHQFKHVDQGEHGGLQJ
,QVWDOODWLRQ2YHUYLHZ
(OHFWURIXVLRQ,QVWUXFWLRQV
(OHFWURIXVLRQRYHUYLHZ
(OHFWURIXVLRQSUHSDUDWLRQGHWDLOV
:HOGLQJRYHUYLHZ
:HOGLQJSULPDU\SLSHDQGÀWWLQJV
:HOGLQJVHFRQGDU\FRQWDLQPHQWSLSHDQGÀWWLQJV
6HFRQGDU\&RQWDLQPHQW
,QVWDOODWLRQ
,QVWDOOLQJD833SRO\HWK\OHQHWDQNFKDPEHU
,QVWDOOLQJD833IXVLRQWDQNFKDPEHU
,QVWDOOLQJD833SRO\HWK\OHQHGLVSHQVHUVXPS
,QVWDOOLQJD833VWDELOLVHUEDU
833HOHFWURIXVLRQVHDODSSOLFDWLRQV
$WWDFKLQJDÁH[LEOHHQWU\ERRW
)XVLRQZHOGLQJ833SRO\HWK\OHQHGXFWSLSH
,QVWDOOLQJD833HOHFWURIXVLRQ)53HQWU\VHDORQDÁDWZDOOHGVXPS
,QVWDOOLQJD833DFFHVVFRYHU
8/3LSHLQVWDOODWLRQLQVWUXFWLRQV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
&217(176
0RGLÀFDWLRQDQG5HSDLURI8336LWHV
0RGLÀFDWLRQDQG5HSDLURI8336LWHV
(OHFWURVWDWLF6DIHW\
:HOGLQJ
6FUDSLQJ7RRO,QVWUXFWLRQV
(:HOGHU2SHUDWLQJ0DQXDO
(:+DQG+HOG:HOGHU2SHUDWLQJ0DQXDO
(::HOGHU2SHUDWLQJ0DQXDO9
()+DQG+HOG:HOGHU2SHUDWLQJ0DQXDO
7LJKWQHVV7HVWLQJ
+\GURVWDWLF0HWKRG
8333QHXPDWLF0HWKRG
8333LSH5DWLQJ
6\VWHP,QWHJULW\7HVWLQJ,QVWUXFWLRQV
'XFWFRQWDLQPHQWSLSH7LJKWQHVV7HVWLQJ5HSRUW
'LVSHQVHU6XPS5HSRUW
8337DQN&KDPEHU9DFXXP7HVW
:DWHU+DPPHU(IIHFWV
)XHO)ORZ
)UHTXHQWO\$VNHG4XHVWLRQV
6DIHW\
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
75$163257/2$',1*$1'6725$*(
75$16,721/2$',1*$1'2))/2$',1*
$OWKRXJK 833 SRO\HWK\OHQH SLSH DQG ÀWWLQJV DUH H[WUHPHO\ KDUG ZHDULQJ
DQGUHVLOLHQWLWLVLPSRUWDQWWRKDQGOHDQGVWRUHWKHPZLWKFDUHWRSUHYHQW
VFXIÀQJRUJRXJLQJ$Q\GDPDJHGSLSHVPD\QHHGWREHUHMHFWHGDQGQRW
LQVWDOOHG6HH¶WUDQVLWORDGLQJDQGVWRUDJHDQGVWRUDJHVXPPDU\RIUXOHV·
RQQH[WSDJHIRUGHWDLOVRQZKDWFRQVWLWXWHVDGDPDJHGOHQJWKRISLSH
833SURGXFWVVKRXOGEHWUDQVSRUWHGLQDÁDWEHGGHGYHKLFOHIUHHIURP
VKDUSREMHFWVDQGSURMHFWLRQV:LGHSRO\SURS\OHQHVOLQJVPXVWEHXVHG
ZKHQOLIWLQJSLSHFUDWHVE\FUDQH$YRLGXVLQJFKDLQVKRRNVRUKDZVHUV
$VSUHDGLQJEHDPVKRXOGEHXVHGZKHQOLIWLQJFUDWHVFRQWDLQLQJSLSH
OHQJWKVJUHDWHUWKDQPIW
$OORZIRUDVOLJKWEHQGLQJRIWKHSLSHFUDWHVZKHQRQDQGRIIORDGLQJ
:KHQXVLQJDIRUNOLIWWRRQRURIIORDGFRLOVWKHIRUNVVKRXOGEHFRYHUHGWR
DYRLGGDPDJHWRWKHFRLOHGSLSH
6725$*(216,7(
,QGLYLGXDOSLSHOHQJWKVVKRXOGEHVWDFNHGQRWPRUHWKDQPKLJKIWZLWK
WKHERWWRPOD\HUIXOO\UHVWUDLQHGE\ZHGJHV:KHUHSRVVLEOHWKHERWWRP
OD\HURISLSHVVKRXOGEHODLGRQWLPEHUEDWWHQVDWPIWFHQWUHVWRDYRLG
DQ\GDPDJHIURPVKDUSREMHFWVO\LQJRQWKHJURXQG
3LSH FUDWHV VKRXOG EH VWRUHG RQ FOHDU OHYHO JURXQG DQG VKRXOG QHYHU EH
VWDFNHGPRUHWKDQWKUHHFUDWHVKLJK
&RLOVVKRXOGEHVWRUHGRQÀUPOHYHOJURXQGWKDWKDVVXLWDEOHSURWHFWLRQ
IRUWKHERWWRPRIWKHFRLO6WDFNHGFRLOVVKRXOGQHYHUH[FHHGWKUHHFRLOV
KLJK,QGLYLGXDOFRLOVVKRXOGEHVWDFNHGÁDW,IVWRUHGRQHGJHWKH\PXVW
EHVHFXUHGDJDLQVWDSURSHUO\DQFKRUHGVXSSRUWDQGVWRUHGOLNHWKLVIRUD
VKRUWSHULRGRIWLPHRQO\SDUWLFXODUO\LQZDUPZHDWKHUFRQGLWLRQV
%DGO\ VWDFNHG FRLOV DQG SLSH OHQJWKV FDQ VOLS FDXVLQJ SHUVRQDO LQMXU\ RU
GDPDJH WR WKH SURGXFW )DFLOLWLHV IRU VDIH OLIWLQJ DQG PRYLQJ PXVW EH
DYDLODEOH
3LSHVDUHVXSSOLHGZLWKGLVWLQFWLYHFRORXUHGHQGFDSVWRSUHYHQWHQWU\RI
DQ\FRQWDPLQDWLRQ7KHVHHQGFDSVPXVWEHNHSWLQSODFHGXULQJVWRUDJH
833ÀWWLQJVDOOHOHFWURIXVLRQÀWWLQJVDUHSDFNHGLQKHDWVHDOHGSRO\HWK\OHQH
EDJVDQGGHOLYHUHGLQFDUGERDUGFDUWRQV)LWWLQJVVKRXOGEHVWRUHGLQWKHLU
SDFNDJLQJDQGLQDGU\DUHDDZD\IURPGLUHFWVXQOLJKWXQWLOUHDG\IRUXVH
7KLV LV SDUWLFXODUO\ LPSRUWDQW IRU HOHFWURIXVLRQ ÀWWLQJV 7KHVH PXVW EH
NHSWLQWKHLUSDFNDJLQJXQWLOUHDG\IRUXVHWRSUHYHQWDQ\FRQWDPLQDWLRQRU
R[LGLVDWLRQ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6800$5<2)58/(6
$OZD\V 1HYHU
6WRUHSLSHVRQÁDWÀUPOHYHOJURXQG ([SRVHSLSHRUÀWWLQJVWRSURORQJHG
DEOHWRZLWKVWDQGWKHZHLJKWRISLSHV GLUHFWVXQOLJKWRUH[FHVVLYH
DQGOLIWLQJHTXLSPHQW WHPSHUDWXUHV
.HHSSLSHDQGÀWWLQJVZHOODZD\IURP 7KURZGURSGUDJRUUROOLQGLYLGXDO
VKDUSREMHFWVVXFKDVÁLQWVDQGRWKHU SLSHVEXQGOHVRUÀWWLQJVDVWKLVFDQ
VLWHGHEULV FDXVHGDPDJHRUVXEVHTXHQWOHDNDJH
8VHZLGHQRQPHWDOOLFVOLQJVZKHQ 8VHPHWDOVOLQJVRUFKDLQVZKHQ
OLIWLQJSLSH KDQGOLQJSLSH
([HUFLVHVSHFLDOFDUHZKHQKDQGOLQJ 6WDFNSLSHPRUHWKDQWKUHHFRLOVRU
SLSHLQZHWRUIURVW\FRQGLWLRQV8VH WKUHHEXQGOHVKLJK
JORYHVIRUDGGLWLRQDOJULS
.HHSSURWHFWLYHSDFNDJLQJLQWDFWXQWLO
SLSHRUÀWWLQJVDUHUHTXLUHGIRUXVH
.HHSERWKSLSHDQGÀWWLQJVRXWRI
GLUHFWVXQOLJKWRULQWHQVHKHDWXQWLO
UHDG\WRXVH
(QVXUHOLIWLQJDQGVWRUDJHSRLQWVDUH
HYHQO\VSDFHG
5HMHFWSLSHLIVXUIDFHGDPDJHLV
H[FHVVLYH0LQRUDEUDVLRQVFDQEH
LJQRUHG
/LJKWDEUDVLRQKDQGOLQJGDPDJHOLPLWHG
WRDVLQJOHDUHDEHWZHHQDVHWRI
WDSHVOHVVWKDQPPZLGHLV
SHUPLWWHG
81&2,/,1*3,3(
7DNH FDUH ZKHQ UHOHDVLQJ SLSH IURP WKH FRLO DV WKH SLSH FDQ VWUDLJKWHQ ZLWK
FRQVLGHUDEOHIRUFH,WLVDOVRLPSRUWDQWWROHWWKHSLSHUHVWRXWRILWVFRLOHGVWDWH
IRUDERXWHLJKWKRXUV+LJKDPELHQWWHPSHUDWXUHVFDQUHGXFHWKLV´OD\RXWµWLPH
DQGORZWHPSHUDWXUHVPD\LQFUHDVHLW3LSHFDQEHODLGLQLWVÀQDOSRVLWLRQWR
´UHOD[µEHIRUHFRQQHFWLQJXS
<RXQHHGDWOHDVWWZRSHRSOHWRXQFRLODQGFXWWKHSLSH7KHFRLOLVWDSHGXSLQ
OD\HUVWRPDNHLWHDVLHUWRXQFRLODWPDQDJHDEOHLQWHUYDOV
7KHDUHDLQZKLFKWKHSLSHLVXQFRLOHGRQVLWHPXVWEHFOHDUVDIHDQGIUHHRI
VKDUSREMHFWV
5HPRYHWKHWDSHDURXQGWKHWDLOHQGRQWKHRXWHUZLQGLQJDQGVHFXUHWKLVHQG
:LWKWKHFRLOLQWKHYHUWLFDOSRVLWLRQUROOWKHFRLORXWFXWWLQJDQGUHPRYLQJWDSH
DV\RXÀQGLWHQVXULQJWRUHOHDVHRQO\WKHQH[WWXUQRISLSHLQWKHFRLO
'RQRWGUDJWKHSLSH
7KHQDWXUDOFXUYHVIURPFRLOLQJFDQEHXVHGWRFKDQJHSLSHGLUHFWLRQDQGEDJV
RIVDQGSHDVKLQJOHRUVWDNHVFDQEHXVHGWRKROGLWLQSODFHXQWLOLWLVUHDG\IRU
FRQQHFWLQJ
2QHSHUVRQVKRXOGKROGWKHSLSHZKLOVWDQRWKHUFXWVLWWRWKHGHVLUHGOHQJWK
7KHFXWHQGVZLOOKDYHDSURPLQHQWKRRNWKDWFDQEHSDUWLDOO\UHPRYHGZKHQ
ZHLJKWLVSODFHGRQLWEDJVRIVDQGRUSHDVKLQJOH2UWKHKRRNHQGFDQEH
XVHGWR\RXUDGYDQWDJHZKHQWXUQLQJGLUHFWLRQLQWRDFKDPEHURUSXPSVXPS
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6,7(35(3$5$7,21
*(77,1*67$57('
'LVSHQVHUPRXQWLQJIUDPHVRIIVHWÀOODQGYHQWIUDPHVVKRXOGEHSRVLWLRQHG
ÀUVWDQGÀUPO\À[HGDWWKHLUÀQDOFRUUHFWOHYHOWRHQVXUHWKDWDOOSLSHZRUN
FDQEHODLGZLWKDFRQWLQXRXVIDOOEDFNWRWKHWDQN
',**,1*75(1&+(6$1'%('',1*
,W LV LPSRUWDQW WR FRQVWUXFW SURSHU WUHQFKHV EHIRUH OD\LQJ 833 SLSH
7UHQFKHVVKRXOGEHZLGHDQGGHHSHQRXJKWRFRPIRUWDEO\DOORZSLSHUXQV
UHFRPPHQGHGVSDFLQJDQGEDFNÀOOPDWHULDOV
5HFRPPHQGHGEXULDOGHSWKRI833SLSHLVDPLQLPXPRIPP
$OO WUHQFKHV VKRXOG EH VORSHG EDFN WRZDUGV WKH VWRUDJH WDQNV ZLWK D
UHFRPPHQGHGJUDGLHQWRI
9DSRXUUHWXUQOLQHVPXVWKDYHDVORSHRISHUIRRWDQGQHYHUOHVVWKDQ
SHUIWEDFNWRZDUGVWKHWDQNIDUPXQOHVVLQOLQHMRLQWVVXFKDVHOERZV
DUHWREHXVHG
7UHQFKFRUQHUVVKRXOGEHUDGLXVHGWRPIW
$ UHFRPPHQGHG FP EHG RI EDFNÀOO PDWHULDO VKRXOG EH ODLG
XQGHUQHDWK WKH SLSH SULRU WR LQVWDOODWLRQ DQG WKHUH PXVW QHYHU EH YRLGV
XQGHURUDURXQGWKHSLSH$FFHSWDEOHEDFNÀOOPDWHULDOVDUH
:HOOURXQGHGSHDJUDYHOVL]HPPWRPP
&UXVKHGURFNVL]HPPWRPP
&OHDQZDVKHGVDQG
:KHQOD\LQJGXFWRQWRDFRQFUHWHEDVHDPPWKLFNEHGRI
FRPSDFWHGVDQGVKRXOGEHODLGRQWKHFRQFUHWHEHORZWKHGXFW
$EVROXWHPLQLPXPDPRXQWRIVDQGVKRXOGEHPPRIFRPSDFWHG
VDQG
$OO EHGV VKRXOG EH ODLG VR WKDW WKH SLSH ZLOO QRW GLS RU VDJ ZKHQ LW LV
LQVWDOOHG
8QGHUJURXQGSLSHUXQVPD\EHFRQWLQXRXVRUKDYHHOHFWURIXVLRQZHOGHG
MRLQWV$Q\PHFKDQLFDOMRLQWVRUFRPSUHVVLRQÀWWLQJVPXVWEHORFDWHGZLWKLQ
DFRQWDLQPHQWFKDPEHURUVXPS
833SLSHH[FHHGLQJPIWVKRXOGEHODLGLQDVHULHVRIODUJHVQDNHOLNH
FXUYHV DQG QRW LQ VWUDLJKW OLQHV 8QFRLOHG SLSH ZKHQ ODLG ZLOO VHWWOH LQ D
QDWXUDOFXUYH
*HQHUDOO\ DQ\ WKHUPDO H[SDQVLRQ ZLOO EH DFFRXQWHG IRU E\ IROORZLQJ RXU
JXLGHOLQHVIRUVSDFLQJEDFNÀOOLQJDQGHQVXULQJUXQVDUHQRWGHDGVWUDLJKW
3LSHVVKRXOGEHVHSDUDWHGIURPHDFKRWKHUE\DWOHDVWWKHGLDPHWHURIWKH
ODUJHVWSLSH
,ISLSHUXQVFURVVHDFKRWKHUWKH\PXVWEHVHSDUDWHGE\DWOHDVWDVPXFK
EDFNÀOOPDWHULDODVWKHGLDPHWHURIWKHODUJHVWSLSHRUSURWHFWHGXVLQJDW
OHDVWPPRIVW\URIRDP
,I XVHG DERYH JURXQG 833 SLSH VKRXOG EH SURWHFWHG DJDLQVW PHFKDQLFDO
FOLPDWLF89DQGÀUHGDPDJHE\ZUDSSLQJLWLQUDGLDWLRQRUWKHUPDOVKLHOGLQJ
WDSH$GGLWLRQDOVXSSRUWVDQGDQFKRUSRLQWVPD\DOVREHUHTXLUHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//$7,2129(59,(:
6LWHLQVSHFWLRQ ,QVWDOORIIVHWÀOOOLQHVLIDSSOLFDEOH
0DNHVXUHWKHVLWHLVSUHSDUHGDQGUHDG\ 6WDUWZLWKWKHLQVWDOODWLRQRIWKHRIIVHWÀOOOLQHVIURPWKH
7RLQVWDOOWKH833SLSHZRUNV\VWHP WDQNDQGZRUNWRZDUGVWKHRIIVHWÀOOSRLQW
,QVWDOOSLSHZRUN 1RWH7KHVFUDSLQJRI6&SLSHPXVWEHGRQHXVLQJD
,W LV QRW HVVHQWLDO WKDW WKH ZRUN LV FDUULHG RXW LQ WKLV KDQGVFUDSHU
RUGHU EXW LW KHOSV WR JLYH VRPH VWUXFWXUH WR WKH VLWH
LQVWDOODWLRQ
7KH OD\LQJ DQG IDOO EDFN FRQVLGHUDWLRQV DUH LGHQWLFDO WR
3ULPDU\ SLSH LQVWDOODWLRQV &DUH PXVW EH WDNHQ GXULQJ
,WLVDGYLVHGWRQRWHGRZQWKHEDWFKQXPEHURIWKH833 DVVHPEO\ WKDW VXIÀFLHQW URRP LV DYDLODEOH QRW RQO\ IRU
SLSHDVLWLVOD\HGRXWLQWKHWUHQFKHVIRUIXWXUHUHIHUHQFH WHUPLQDWLRQV DQG WKH LQVWDOODWLRQ RI ÀWWLQJV RQ 3ULPDU\
WKLVFDQEHIRXQGSULQWHGRQWKHSLSHLWVHOI OLQHVEXWDOVRIRUÀWWLQJVWRWHUPLQDWH6&SLSH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,QVWDOO956WDJH95
([DFW UHTXLUHPHQWV IRU 95 YDU\ /RFDO OHJLVODWLYH
UHTXLUHPHQWV ZLOO QHHG WR EH WDNHQ LQWR FRQVLGHUDWLRQ
IRUV\VWHPGHVLJQDQGPDWHULDOVXVHG
&DUH QHHGV WR EH WDNHQ WR HQVXUH DGHTXDWH IDOO EDFN LV
DFKLHYHGDWDOOWLPHVIURPWKHIXUWKHVWSRLQWWRWKHÀQDO
FRQQHFWLRQDWHLWKHUWKHWDQNFKDPEHURU95EPDQLIROG
7KH 95 V\VWHP LV XVXDOO\ D PDQLIROGHG PDLQOLQH
ZLWK EUDQFKHV DWWDFKHG 7KH XQGHU SXPS GLVSHQVHU
FRQQHFWLRQV PXVW DOORZ IRU D IDOO EDFN WR WKH PDLQ
PDQLIROGLQJOLQH
,PSRUWDQW
(DUWKLQJRIPHWDOWHUPLQDWLRQV
$OO833PHWDOWHUPLQDWLRQVLQWKHÀOOER[DWWKHWDQNWRS
DQG XQGHU WKH GLVSHQVHU VKRXOG EH DGHTXDWHO\ HDUWKHG
DFFRUGLQJWRORFDOHOHFWULFDOUHJXODWLRQV
6HHVHFWLRQIRUPRUHGHWDLOV
&RPSOHWLRQ5HFRUGV
2QFRPSOHWLRQRI833LQVWDOODWLRQLWLVUHFRPPHQGHGWKDW
DQ´DVFRQVWUXFWHGµGUDZLQJLVPDGHGHWDLOLQJWKHH[DFW
ORFDWLRQRIDOOEHORZJURXQGOLQHV,WLVDOVRUHFRPPHQGHG
WKDWLQDGGLWLRQDSKRWRJUDSKLFUHFRUGLVSURYLGHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(/(&752)86,21,16758&7,21
2UJDQLVHDOOQHFHVVDU\WRROVDQGHTXLSPHQWRQWKHMREVLWHSULRUWR
FRPPHQFLQJWKHLQVWDOODWLRQRISLSHDQGÀWWLQJV
7KHEDVLFLQVWDOODWLRQWRROVHWVKRXOGDOZD\VLQFOXGH
833(OHFWURIXVLRQZHOGHU
3LSHFXWWHU
3LSH6FUDSHU
&OHDQLQJ6ROYHQW
6WUDLJKWDQGDQJOHGFODPSV
3HUPDQHQWPDUNHURU&KLQDJUDSKSHQFLOZKLWH\HOORZRUUHG
7DSHPHDVXUH
5HIHUWRWKHIROORZLQJVHFWLRQVIRUPRUHGHWDLOHGLQIRUPDWLRQRQWKHDERYH
WRROLQJ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(/(&752)86,2129(59,(:
&OHDQ VFUDSHG DUHDV RI SLSH RU ÀWWLQJ XVLQJ D 0HDVXUH DQG PDUN SLSH WR LQGLFDWH FRUUHFW
OLQWIUHHFORWKPRLVWHQHGZLWK$FHWRQH LQVHUWLRQGHSWKLQWRIXVLRQÀWWLQJ
$FHWRQH UHPRYHV RLOV ÀQJHUSULQWV DQG
PRLVWXUH
&OHDQERUHRIZHOGLQJFRXSOHUZLWK$FHWRQH $VVHPEOH WKH MRLQW DQG XVH FODPS WR KROG LQ
SODFH&KHFNLQVHUWLRQLVXSWRWKHSUHPDUNHG
GHSWKLQGLFDWLRQ
&RQQHFWZHOGHUWRFODPSHGDVVHPEO\DQGIROORZ D &KHFNLQVHUWLRQGHSWKPDUN
ZHOGLQJ XQLW LQVWUXFWLRQV (QVXUH DSSURSULDWH IRUPRYHPHQW
ZHOGLQJFDEOHVDUHXVHG E &KHFNLQGLFDWRUVDUHRXW
F $OORZMRLQWWRFRROWRDPELHQW
WHPSHUDWXUH $W OHDVW
PLQXWHV VKRXOG SDVV EHIRUH
DQ\ VWUHVVHV DUH H[HUWHG
XSRQWKHDVVHPEO\
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(/(&752)86,2135(3$5$7,21'(7$,/6
&XWWLQJSLSH
3ULPDU\SLSHVLQJOHZDOOSLSH
3ULPDU\SLSHVKRXOGRQO\EHFXWXVLQJWKHDSSURSULDWH833SLSHFXWWHUWRRO &XWWLQJSULPDU\SLSHXVLQJ
DQG QHYHU XVLQJ D KDQG VDZ7KH 833 FXWWLQJ WRRO JLYHV VWUDLJKW FXWV 833FXWWLQJWRRO
HYHU\WLPHDQGQREXUULQJHQVXULQJWKDWWKHFXWHQGVÀWÁXVKLQWRDQ\ZHOGLQJ
FRXSOHUVRUÀWWLQJV
7KHUHDUHIRXUGLIIHUHQWSLSHFXWWHUVDYDLODEOHIRUYDU\LQJSLSHGLDPHWHUV
6HFRQGDU\FRQWDLQPHQWSLSHGRXEOHZDOOSLSH
6HFRQGDU\FRQWDLQPHQWSLSHVKRXOGEHFXWLQH[DFWO\WKHVDPHZD\DVSULPDU\
SLSHXVLQJWKH833SLSHFXWWLQJWRROV
&XWWLQJVHFRQGDU\SLSH
:KHQ FXWWLQJ FRD[LDO SLSH LW LV SRVVLEOH WR FXW WKURXJK ERWK SLSH OD\HUV LQ XVLQJ833FXWWLQJWRRO
RQHJR%HFDUHIXORIWKLVLI\RXZDQW\RXUSULPDU\SLSHOHQJWKORQJHUWKDQWKH
VHFRQGDU\VKHDWKLQVLGHVXPSVDQGFKDPEHUVHWF
'XFWSLSH
,WLVQRWSRVVLEOHWRFXW833FRUUXJDWHGGXFWSLSHXVLQJWKH833SLSHFXWWLQJ
WRROV$KDQGVDZVKRXOGEHXVHGWRFXWWKHGXFWXVLQJWKHFRUUXJDWLRQVDV
JXLGHVWRKHOSFUHDWHDFOHDQVWUDLJKWFXW
6FUDSLQJ833SULPDU\SLSH
XVLQJVFUDSLQJWRRO
6FUDSLQJ833VHFRQGDU\
SLSHXVLQJKDQGVFUDSHU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6&5$3,1*
,WLVLPSHUDWLYHWKDWWKHVFUDSLQJRISLSHVDQGÀWWLQJVLVFDUULHGRXWH[DFWO\DV
GHVFULEHGKHUHWRUHPRYHWKHOD\HURIR[LGLVHGPDWHULDOWKDWEXLOGVXSRQWKH
SLSHZKHQLWLVH[SRVHGWRDLU7KLVR[LGLVHGOD\HUKLQGHUVWKHTXDOLW\RIWKH
ZHOGDQGPXVWEHUHPRYHG1(9(5XQGHUDQ\FLUFXPVWDQFHXVHVDQGSDSHU
3ULPDU\SLSHVLQJOHZDOOSLSH
3ULPDU\ SLSH PXVW EH VFUDSHG XVLQJ WKH 833 VFUDSLQJ WRRO 6&5
$EUDGLQJGXFWSLSHZLWK RU 6&5. 7KHVH WRROV UHPRYH D FRQWUROOHG RXWHU OD\HU RI R[LGLVHG
HPHU\FORWK SRO\HWK\OHQHRYHUWKHOHQJWKRIWKHSLSHZKLFKLVLQVHUWHGLQWRDFRXSOHURU
HOHFWURIXVLRQÀWWLQJ6HH6FUDSHUWRROLQVWUXFWLRQSDJHIRUPRUHLQIRUPDWLRQ
6HFRQGDU\FRQWDLQPHQWSLSHGRXEOHZDOOSLSH
6HFRQGDU\FRQWDLQPHQWSLSHKDVWREHVFUDSHGXVLQJWKH833KDQGVFUDSHU
6&5+$5$OD\HURISODVWLFPXVWEHUHPRYHGDOODORQJWKHOHQJWKRISLSHWR
EHLQVHUWHGLQWRWKHZHOGLQJFRXSOHURUHOHFWURIXVLRQÀWWLQJ
'XFW3LSH
'XFWSLSHPXVWEHDEUDGHGXVLQJHPHU\FORWKDVLWVFRUUXJDWHGVWUXFWXUH
$EUDGLQJDOODURXQG GRHVQ·WDOORZWKH833VFUDSLQJPDFKLQHRUWKHKDQGVFUDSHUWREHXVHG
FRUUXJDWLRQVRIGXFW
&DUHPXVWEHWDNHQWRDEUDGHDOODURXQGWKHFRUUXJDWLRQV
1RQHOHFWURIXVLRQ)LWWLQJV
1RQ HOHFWURIXVLRQ ÀWWLQJV LH WKRVH WKDW QHHG DQ HOHFWURIXVLRQ FRXSOHU WR
EHZHOGHGPXVWEHVFUDSHGZLWKWKH833KDQGVFUDSHUEHIRUHZHOGLQJFDQ
FRPPHQFH
7KHVSLJRWRIWKHVHÀWWLQJVPXVWEHVFUDSHGXVLQJWKH833KDQGVFUDSHUWR
UHPRYHDOD\HURIR[LGLVHGSRO\HWK\OHQHDORQJWKHZKROHOHQJWKWKDWLVWREH
LQVHUWHGLQWRWKHZHOGLQJFRXSOHU
6FUDSLQJ833QRQ
HOHFWURIXVLRQÀWWLQJZLWKKDQG
VFUDSHU (OHFWURIXVLRQ)LWWLQJV:HOGLQJ&RXSOHUV
HOHFWURIXVLRQÀWWLQJVDUHWKRVHZLWKZHOGLQJHOHPHQWVEXLOWLQWRWKHPWKHVH
GRQRWUHTXLUHVFUDSLQJEHIRUHEHLQJXVHGEXWPXVWEHFOHDQHGZLWKDVROYHQW
HJ$FHWRQH
&/($1,1*
7RHQVXUHWKDWWKHUHLVQRJUHDVHPRLVWXUHRUGLUWLQWKHHOHFWURIXVLRQ]RQH
GXULQJZHOGLQJLWLVLPSRUWDQWWRFOHDQDOOWKHSLHFHVRIWKHDVVHPEO\SULRUWR
&OHDQLQJDZHOGLQJVRFNHW ZHOGLQJ7KHIROORZLQJ6ROYHQWPD\EHXVHG
ZLWKDQDFHWRQHVRDNHGFORWK $FHWRQH
,VRSURS\ODOFRKRO
7ULFORUHWKDQH
'R QRW XVH VROYHQWV WKDW OHDYH DQ RLO\ ÀOP RQ WKH MRLQLQJ VXUIDFH VXFK DV
WXUSHQWLQHSHWUROV\QWKHWLFGLOXWHQWV
7KHVXUIDFHVWREHFOHDQHGLQFOXGH
$OOVFUDSHGDUHDVRISLSHVDQGÀWWLQJV
7KHLQVLGHRIHOHFWURIXVLRQÀWWLQJVDQGZHOGLQJFRXSOHUV
&OHDQLQJDVHDOVSLJRWZLWK
DQDFHWRQHVRDNHGFORWK 2QFHWKHDUHDVRISLSHVDQGÀWWLQJVWREHZHOGHGKDYHEHHQZLSHGFOHDQDYRLG
FRQWDFWZLWKWKHPDQG\RXUKDQGVRUDQ\RWKHUVRXUFHVRIJUHDVHGLUW
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
0$5.,1*
0DUNWKHLQVHUWLRQGHSWKRQSLSHHQGVXVLQJDSHUPDQHQWPDUNHURU
&KLQDJUDSKSHQFLODQGDUXOHU
7KH IROORZLQJ WDEOH UHSRUWV WKH FRUUHFW LQVHUWLRQ GHSWK LQWR 833
SULPDU\HOHFWURIXVLRQÀWWLQJV
0DUNLQJLQVHUWLRQGHSWK
'HVFULSWLRQ PP 3URGXFW ,QVHUWLRQ/HQJWK
&RGH PP ,QFKHV
:HOGLQJ&RXSOHU
(,) ö
&/$03,1*
,W LV LPSRUWDQW WR FKHFN IRU FRUUHFW DOLJQPHQW RI WKH DVVHPEO\ ERWK
YHUWLFDOO\DQGKRUL]RQWDOO\DQGWRHQVXUHWKDWLWLVQRWVXEMHFWHGWRDQ\
EHQGLQJORDGRUZHLJKWWKDWFRXOGGHIRUPWRWKHMRLQWZKLOVWLWLVLQD
PROWHQVWDWH
8VH833FODPSVWRNHHSWKHDVVHPEO\LQWKHFRUUHFWDOLJQPHQWSRVLWLRQ
SUHYHQWLQJDQ\PRYHPHQWGXULQJWKHZHOGLQJDQGVXEVHTXHQWFRROLQJ
SURFHVV
,I D FODPS FDQQRW EH XVHG IRU H[DPSOH LQ D VPDOO WDQN FKDPEHU &ODPSLQJDQHOERZMRLQW
SUHFDXWLRQVQHHGWREHWDNHQWRHQVXUHWKDWWKHDVVHPEO\LVQRWXQGHU
DQ\VWUHVV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
:(/',1*29(59,(:
833 YROW DQG YROW LQWHOOLJHQW:HOGLQJ 8QLWV KDYH EHHQ GHVLJQHG WR
VXSSO\ WKH H[DFW FRQWUROOHG HOHFWULFDO HQHUJ\ QHFHVVDU\ WR IXVH WZR 833
SURGXFWVWRJHWKHUDQGWRSURYLGHFRPSOHWHVDIHW\RQVLWH7KHUHVXOWDQWKHDW
FDXVHVWKHSLSHDQGMRLQWVXUIDFHVWRPHOWDQGIXVH2QFHHOHFWURIXVLRQKDV
WDNHQ SODFH WKH DVVHPEO\ LV OHIW WR FRRO ZKLOH WKH SRO\HWK\OHQH VROLGLÀHV WR
IRUPDKRPRJHQRXVXQLRQVWURQJHUWKDQERWKSLSHDQGÀWWLQJV
833ZHOGHUVXVHDFRQVWDQWFXUUHQWRXWSXW833FRPSRQHQWVPXVWQHYHUEH
ZHOGHGZLWKRWKHUEUDQGVRIZHOGLQJXQLW
1RWH ,Q EDG ZHDWKHU
%RWKW\SHVRIZHOGHUFDQEHXVHGIURPWKHPDLQVVXSSO\RUIURPDJHQHUDWRU
FRQGLWLRQV D VKHOWHU PD\ QHHG
$VWKHZHOGLQJPDFKLQHPHDVXUHVWKHDPELHQWWHPSHUDWXUHDQGWKHZHOGLQJ WR EH FRQVWUXFWHG WR SUHYHQW DQ\
FRXSOHUHOHFWURIXVLRQÀWWLQJVUHVLVWDQFHYDOXHVLWPXVWEHSRVLWLRQHGLQWKH ZDWHU GURSOHWV IURP HQWHULQJ WKH
VDPHHQYLURQPHQWDVWKHMRLQWLWLVZHOGLQJ IXVLRQDUHDDQGFRQWDPLQDWLQJWKH
MRLQWSULRUWRZHOGLQJ
$PD[LPXPRIWKUHHSULPDU\FRXSOHUVRUSULPDU\HOHFWURIXVLRQÀWWLQJVPD\EH
ZHOGHGDWWKHVDPHWLPHE\XVLQJEULGJLQJOHDGV0RVWHOHFWURIXVLRQFRXSOHUV
DQGÀWWLQJVKDYHDUHVLVWDQFHLQGH[QXPEHUPDUNHGRQWRWKHPLQVLGHDFLUFOH
LH7KHWRWDOYDOXHRIWKHLQGH[QXPEHURIWKHWKUHHLWHPVWREHZHOGHG
PXVWQRWH[FHHG,IWKHÀWWLQJGRHVQRWKDYHDUHVLVWDQFHLQGH[QXPEHU
PDUNHGRQLWVHOIWKHQLWPXVWEHWUHDWHGDVKDYLQJDQLQGH[QXPEHURI$
OLVWRIUHVLVWDQFHQXPEHUVFDQEHVHHQLQVHFWLRQVDQG
)XOOZHOGLQJXQLWLQVWUXFWLRQVFDQEHIRXQGLQWKHIROORZLQJVHFWLRQV
:(/',1*35,0$5<3,3($1'),77,1*6
$WWDFKWKHZHOGLQJFDEOHWRWKHDVVHPEO\WREHZHOGHGYLDWKHZHOGLQJSLQVRQ
WKHFRXSOHUHOHFWURIXVLRQÀWWLQJ
3UHVVWKH(17(5NH\RU67$57EXWWRQWREHJLQWKHZHOG7KHXQLWDXWRPDWLFDOO\
GHWHFWV WKH NLQG RI ÀWWLQJ LW LV ZHOGLQJ DQG RQ VRPH ZHOGHUV GLVSOD\V WKH
UHPDLQLQJZHOGWLPHDQGWKHHOHFWULFFXUUHQWLQDPSV
2QFHWKHZHOGLQJRSHUDWLRQLVFRPSOHWH\RXQHHGWRHQVXUHWKDWERWKLQGLFDWRU
SLQVRQWKHZHOGLQJFRXSOHUKDYHH[WHQGHG,IHLWKHURIWKHVHLQGLFDWRUVIDLOVWR
H[WHQGWKHMRLQWPXVWEHWUHDWHGDVVXVSHFWDQGWKHDVVHPEO\VKRXOGEHOHIWWR
FRROIXOO\DSSUR[RQHKRXUEHIRUHZHOGLQJLVUHVWDUWHGLIWKHSLQVVKRZRQ
833:HOGHUYROW
WKHVHFRQGWLPHRIZHOGLQJWKHZHOGFDQEHWUHDWHGDVVXFFHVVIXOEXWVKRXOG
EHGXO\QRWHGLQFDVHRIDQ\V\VWHPOHDNVGXULQJWLJKWQHVVWHVWLQJ,IWKHSLQV
GRQ·WVKRZSHUIRUPDSUHVVXUHWHVWWRFKHFNWKHMRLQW
-2,1760867127%(81'(5$1<675(66'85,1*:(/',1*$1'817,/
$0%,(177(03(5$785(,65($&+('$)7(5:(/',1*
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
7\SH :HOGLQJ 6L]HRI :HOG7LPH
&XUUHQW
RI &DEOH :HOGLQJ #&
DPSV
)LWWLQJ &RORXU 3LPPP 6HFRQGV
6HFRQGDU\ *UHHQ
)XVLRQ
:KLWH
&KDPEHU
/DUJH
'LDPHWHU %ODFN
DPS
1RWH$UHVLVWDQFHYDOXHRI;PHDQVWKDWWKHUHLVQRPDUNHGUHVLVWDQFH
YDOXHRQWKHÀWWLQJVDQGWKHVHVKRXOGEHWUHDWHGDVKDYLQJYDOXHVRI
3ULPDU\:HOGLQJ6RFNHWV
3ULPDU\ZHOGLQJVRFNHW
3ULPDU\ZHOGLQJVRFNHW
3ULPDU\ZHOGLQJVRFNHW
3ULPDU\ZHOGLQJVRFNHW
3ULPDU\ZHOGLQJVRFNHW
3ULPDU\ZHOGLQJVRFNHW
3KRWRRIUHVLVWDQFHLQGH[
3ULPDU\ZHOGLQJVRFNHW
QXPEHURQD833
ZHOGLQJFRXSOHU
(,)(OERZVDQG7HHVDQG5HGXFHUV
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHOERZ (,)
HOHFWURIXVLRQHTXDOWHH (,)
HOHFWURIXVLRQHTXDOWHH (,)
HOHFWURIXVLRQHTXDOWHH (,)
HOHFWURIXVLRQHTXDOWHH (,)
HOHFWURIXVLRQUHGXFHU (,)
HOHFWURIXVLRQUHGXFHU (,)
HOHFWURIXVLRQHQWU\VHDO )ODQJH
HOHFWURIXVLRQHQWU\VHDO )ODQJH
HOHFWURIXVLRQHQWU\VHDO )ODQJH
HOHFWURIXVLRQHQWU\VHDO )ODQJH
7DEOH3ULPDU\:HOGLQJ)LWWLQJV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
:(/',1*6(&21'$5<&217$,10(173,3($1'
),77,1*6
*UHHQ ZHOGLQJ FDEOHV VKRXOG EH XVHG IRU ZHOGLQJ VHFRQGDU\ FRQWDLQPHQW
SLSH
6RPHZHOGLQJXQLWGLVSOD\VZLOOUHDG´6HFRQGDU\0RGHµDQGDIWHUÀYHVHFRQGV
´&RQQHFWZHOGLQJHOHPHQWµ
$WWDFKWKHZHOGLQJFDEOHWRWKHDVVHPEO\WREHZHOGHGYLDWKHZHOGLQJSLQV
RQWKHFRXSOHUHOHFWURIXVLRQÀWWLQJDQGWKHQIROORZWKHRSHUDWLRQVLQ6HFWLRQ
-2,1760867127%(81'(5$1<675(66
'85,1*:(/',1*$1'817,/$0%,(17
7(03(5$785(,65($&+('$)7(5:(/',1*
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(/(&752)86,210(7+2'
00'28%/(:$//6(&21'$5<&217$,1('(/%2: 257((
8333DUWV5HTXLUHG
7HHDVVHPEO\ (OERZDVVHPEO\
&RGH 4XDQWLW\ &RGH 4XDQWLW\
;;; $VUHTXLUHG ;;; $VUHTXLUHG
6& 6&
6&/ 6&
7RROV &RQVXPDEOHV5HTXLUHG
7HH (OERZDVVHPEO\
3&873LSHFXWWHU
6&5+$5+DQGKHOGVFUDSHU
$FHWRQH
&ODPS$$QJOHGFODPS
833ZHOGHU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
0HWKRG
PP
P
P
3UHSDUH3ULPDU\DQG6HFRQGDU\SLSHXVLQJKDQGVFUDSHU &OHDQVHFRQGDU\SLSHZLWKDFHWRQHDWOHDVWPP
6HFRQGDU\SLSHPXVWEHVFUDSHGDOOWKHZD\XSWR IURPHQG
PPIURPLWVHQG
PP
3UHSDUH3ULPDU\VSLJRWVRIWHHHOERZZLWKKDQGVFUDSHU
&OHDQ3ULPDU\VSLJRWVRIWHHHOERZZLWKDFHWRQH
3UHSDUH6HFRQGDU\VSLJRWVRIWHHHOERZZLWKKDQG
&OHDQ6HFRQGDU\VSLJRWVRIWHHHOERZZLWKDFHWRQH
VFUDSHU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
%HIRUHZHOGLQJFKHFNWKDWWKH6HFRQGDU\&RQWDLQPHQW
UHGXFHULVÀWWHGLQFRUUHFWORFDWLRQRYHUVFUDSHG]RQHRI
,IUHTXLUHGOHDYH6HFRQGDU\&RQWDLQPHQWXQZHOGHG
VHFRQGDU\SLSH
WRDOORZSULPDU\SUHVVXUHWHVWVWREHFDUULHGRXW
:HOG3ULPDU\FRXSOHUV
2QFHZHOGLVFRPSOHWHDOORZWRFRROIRUDWOHDVW
PLQXWHV
6OLGHUHGXFHUVLQWRSODFHHQVXUHIXOOLQVHUWLRQ
&OHDQLQVLGHRIUHGXFHUVSLJRWDQGRXWVLGHRIWKH7HH :HOGVHFRQGDU\
(OERZVSLJRWVZLWKDFHWRQH $OORZWRFRROIRUDWOHDVWPLQXWHVEHIRUH
SXWWLQJDQ\VWUHVVRQWKHMRLQW
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
7+,6352&('85(0867%()2//2:('
121&203/,$1&(:,//92,':$55$17<$1',167$//(5&(57,),&$7,21
6(&21'$5<7(50,1$7,21,167$//$7,210(7+2'
00'28%/(:$//
7KHVHLQVWUXFWLRQVFRYHULQVWDOODWLRQRIWKHIROORZLQJÀWWLQJV
73 73 73
0DUNSLSHKHUH
&XW6HFRQGDU\SLSHWRFRUUHFWOHQJWKHQVXULQJQRW
WRGDPDJH3ULPDU\SLSHDWOHDVWPP3ULPDU\
(QVXUHHQWU\VHDOVDUHÀWWHGSURYLGLQJFRUUHFWDQG
H[SRVHG
XQVWUHVVHGDOLJQPHQWEHWZHHQHQWU\VHDOSLSHDQG
,QVHUWVHULHVÀWWLQJRYHU3ULPDU\SLSHDQGVOLGH
WHUPLQDWLRQ
XSWR6HFRQGDU\3LSHDQGLQWRÀQDOSRVLWLRQ
:LSHFOHDQSLSHDQGHQWU\VHDOEHIRUHDQ\SLSH
0DUNSLSHWRVKRZLQVHUWLRQGHSWKLQWRVHULHV
LQVHUWLRQ
ÀWWLQJ
5HPRYHVHULHVÀWWLQJ
6FUDSHSLSHKHUH 0DUNSLSHKHUH
0DUNLQVHUWLRQGHSWKRISLSHLQWR(OHFWURIXVLRQ
6FUDSHWKHVXUIDFHRIWKH6HFRQGDU\&RQWDLQPHQW &RXSOHUPPJDSEHWZHHQVHULHVILWWLQJ
SLSHWREHZHOGHGWKRURXJKO\XVLQJ833KDQGVFUDSHU DQG(OHFWURIXVLRQ&RXSOHULVUHFRPPHQGHG
&OHDQVFUDSHGSLSHZLWKDFHWRQH
,QVHUWSLSHWKURXJKHQWU\6HDO
6FUDSHZHOG]RQHVIRU(OHFWURIXVLRQ&RXSOHUDQG
&OHDQLQVLGHVHULHVÀWWLQJHOHFWURIXVLRQFRXSOHU
VHULHVÀWWLQJ
DQGZHOG]RQHRIWHUPLQDWLRQZLWKDFHWRQH
6FUDSHZHOG]RQHRI7HUPLQDWLRQ
6OLGHVHULHVÀWWLQJDORQJSULPDU\SLSHDQGSXVK
LQWRÀQDOSRVLWLRQRYHU6HFRQGDU\SLSH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
'2127),77(50,1$7,21720$7&+,1*67((/:25.2)6<67(0
35,2572:(/',1*$67+,6:,//&$86(675(66
(QVXUHDVVHPEO\LVVXSSRUWHGDQGXQDEOHWRPRYH
GXULQJWKHZHOGLQJSURFHVVZLWKQRVWUHVVRQDQ\
)LWHOHFWURIXVLRQ&RXSOHURQWR3ULPDU\3LSHIXOO\XS
SDUWRIWKHDVVHPEO\
WR0DUNHGLQVHUWLRQGHSWK
6XSSRUWWHUPLQDWLRQGXULQJWKHZHOGLQJSURFHVV
)LWWHUPLQDWLRQIXOO\LQWRHOHFWURIXVLRQ&RXSOHU
6XSSRUW3LSHLIUHTXLUHGERWKLQVLGHDQGRXWVLGHWKH
HQVXULQJSLSHLVQRWGLVSODFHGIURPHOHFWURIXVLRQ
6XPSGXULQJWKHZHOGLQJSURFHVV
&RXSOHU
$OORZÀWWLQJWRFRROWRDPELHQWWHPSHUDWXUH
QRUPDOO\PLQXWHVEHIRUHPRYHPHQWLVDOORZHG
)LWWHUPLQDWLRQWRPDWFKLQJSDUWRI6\VWHP $WWDFKZHOGLQJJUHHQOHDGVWRVHULHVÀWWLQJ
:HOGHQWU\6HDOWRSLSHXVLQJJUHHQZHOGLQJOHDGV (QVXUHSLSHLVLQVLGHÀWWLQJXSWRPDUNHGLQVHUWLRQ
DQGHQVXULQJWKHSLSHLVKHOGKRUL]RQWDOO\LQVLGHDQG GHSWKDQGWKDWWKHUHLVQRVWUHVVRQSLSHRUÀWWLQJ
RXWVLGH6XPS &RPPHQFHZHOGLQJ
3RVLWLRQ6HULHVÀWWLQJLQWRÀQDOSRVLWLRQRYHUHQG $OORZMRLQWWRFRROWRDPELHQWWHPSHUDWXUH
RI6HFRQGDU\SLSHHQVXULQJSRVLWLRQPDUNLQJVFDQEH DSSUR[LPDWHO\PLQXWHVEHIRUHSXWWLQJDQ\
REVHUYHG VWUHVVRQWKHÀWWLQJ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$83332/<(7+</(1(7$1.&+$0%(5
,QVWDOOLQJFKDPEHUEDVH
&KHFNWKHVL]HDQGVKDSHRIWKHWDQNDFFHVVVKDIWÁDQJH
0DUNEDVHRIWKH833FKDPEHUIRUFXWWLQJWRÀWDFFHVVVKDIWÁDQJH
ZLWQHVVOLQHVVKRZFRPPRQÁDQJHVW\OHSKRWR
8VHDURXQGKROHVDZWRFXWSLORWKROHVLQDOOIRXUFRUQHUVRIWKHEDVH7KLVLV
LPSRUWDQWDVFRUQHUVZKLFKDUHQRWUDGLXVHGE\DFLUFXODUKROHVDZDQGDUH
FXWVTXDUHPD\FDXVHWKHSRO\HWK\OHQHWRFUDFNSKRWR
5HPRYHFXWRXW
0DUNEROWKROHSRVLWLRQVRQVXPSEDVHDQGGULOO
&XWVWUDLJKWOHQJWKVRIJDVNHWPDWHULDOIURPWKHUROOWRÀWRYHUWDQNDFFHVV
VKDIWÁDQJHSKRWR
&OHDQWDQNDFFHVVÁDQJHXVLQJDFOHDQLQJVROYHQW$FHWRQHUHFRPPHQGHG
5HPRYHEDFNLQJOD\HUIURPVWLFN\VLGHRIJDVNHWDQGVWLFNWKHJDVNHWWRWKH
ÁDQJH&RUQHUVVKRXOGEHVTXDUHDQGEXWWHGWRJHWKHUWRFUHDWHDZDWHUWLJKW
VHDO
%ROWFKDPEHUWRWDQNDFFHVVVKDIWÁDQJH7KHEROWVZLOOHDVLO\SXVKWKURXJK
JDVNHWPDWHULDO
,QVWDOOLQJWDQNFKDPEHUULVHUWREDVH
&XWULVHUWRUHTXLUHGKHLJKWXVLQJFDVWOHDWLRQVDVDJXLGHSKRWR
&OHDQJDVNHWVXUIDFHVRIFKDPEHUXVLQJFOHDQLQJVROYHQW$FHWRQH
6WLFNTXDUWHUFLUFOHJDVNHWSLHFHVRQHE\RQHWRWRSRIFKDPEHUEDVHHQVXUH
KROHVLQJDVNHWOLQHXSZLWKKROHVLQFKDPEHUIRUEHVWÀWDQGPDNHVXUHDOO
MRLQWV EHWZHHQ JDVNHW TXDUWHU FLUFOHV DUH EXWWHG WRJHWKHU WR PDNH D ZDWHU
WLJKWVHDOSKRWR
3ODFHULVHURQEDVHDQGOLQHXSEROWKROHV
7LJKWHQ DOO EROWV DURXQG FKDPEHU LQLWLDOO\ EHIRUH UHSHDWLQJ WR PDNH VXUH DOO
EROWVDUHIXOO\WLJKWHQHGSKRWR
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
%DFNÀOOLQJ
3ULRUWREDFNÀOOLQJWKHFKDPEHUOLGPXVWEHLQSRVLWLRQWRSUHYHQW
DQ\GHÁHFWLRQRIWKHULVHU
$FFHSWDEOHEDFNÀOOPDWHULDOVDUH
,03257$17%DFNÀOOPDWHULDOVKRXOGEHIUHHIURPLFHRUDQ\
RUJDQLFVLOWRUSHDW
3DUWLFXODUFDUHVKRXOGEHWDNHQWRHQVXUHHQRXJKEDFNÀOOLVODLGGRZQDURXQG
WKHXQGHUVLGHRIWKHFKDPEHUZKHUHLWRYHUKDQJVWKHWDQNDFFHVVVKDIWÁDQJH
1RPHFKDQLFDOFRPSDFWRUVVKRXOGEHXVHGVXFKDVYLEUDWLQJSODWHVFRPSDFWRUV
RUURDGUROOHUV
7LJKWQHVVWHVWLQJ
7KHFKDPEHUFDQEHWHVWHGIRUWLJKWQHVVXVLQJWKH8336\VWHP
,QWHJULW\7HVWLQJ8QLW'HWDLOHGLQWKHWRROLQJVHFWLRQRIWKH833
,QVWDOODWLRQ0DQXDO
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$833)86,2132/<(7+</(1(7$1.&+$0%(5
*DVNHWUROOVXSSOLHGZLWKFKDPEHU
,QVWDOOEDVHVHFWLRQ
&OHDQWDQNFRQWDLQPHQWFROODUZLWKDFHWRQH
DQGDSSO\DGKHVLYHEDFNHGJDVNHWWRDFFHVV
VKDIWIODQJHHQVXULQJWKHUHDUHQRJDSV
6FDUIMRLQW
FXWDW
D 0DUNEDVHIRUDFFHVVVKDIWRSHQLQJDQGEROW
KROHVDVSHUDFFHVVVKDIWGLPHQVLRQV
&XWEDVHRSHQLQJXVLQJMLJVDZRUKDQGVDZ
RQO\'ULOOEROWKROHV
127( )RUVTXDUHFROODUVXVHKROHVDZWR
FXWDOOFRUQHUVRIWKHRSHQLQJ
FKDPEHUV
3&'
%DFNLQJ3ODWH[
0RXQWFKDPEHUEDVHRQWRWDQN &LUFXODUÀDQJHGUDZLQJ37//$
)LWEDFNLQJSODWHVDQGEROWWRJHWKHUXVLQJ 6TXDUHÀDQJHGUDZLQJ37//$
0%ROWVHWV
(QVXUHDOOEROWVDUHWLJKWHQHGHTXDOO\
5HFRPPHQGHGWRUTXH1POEIW
,03257$17
%DVHGRQ&RRNVRQ =LQQVWDQGDUGWDQN
IODQJHV2WKHUWDQNW\SHVPD\YDU\ $
3OHDVHFKHFNZLWKWDQNPDQXIDFWXUHU
0[%ROWVHW
'(7$,/$ [+H[%ROW
[3ODLQ:DVKHU
[+H[1XW
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
%DFNILOOXSWRWKHWRSRIWKHWDQNFROODU(QVXUHEDFNILOOLV
ZHOOFRPSDFWHGDQGLVIXOO\LQWRWKHDUHDXQGHUWKHWDQN
VXPS
)LJ
9DFXXPWHVWXVLQJ8339DFXXP7HVW8QLWWRSURYHMRLQW
EHWZHHQWDQNFROODUDQGWDQNVXPSEDVH5HFRPPHQGHG
GHSWKVHWWLQJIW6HHQRWHRQ7LJKWQHVV7HVWLQJLQVHFWLRQ
1RWH0DNHVXUHSOXJVLQWDQNPDQLIROGOLGDUHLQSRVLWLRQ
,QVWDOO3LSHZRUNDVSHUFXVWRPHU
VSHFLILFDWLRQ )LJ
9DFXXPWHVWWRSURYHWLJKWQHVVRI
HOHFWURIXVLRQHQWU\VHDOVILJWHVW
5HFRPPHQGHGGHSWKVHWWLQJIW
6HHQRWHRQ7LJKWQHVV7HVWLQJLQVHFWLRQ
:HOGLQJULVHUWR%DVH
D 6FUDSHZHOGDUHDRQEDVHZLWK+DQG6FUDSHU
DQGFOHDQZHOGDUHDRQERWKULVHUDQGEDVH
ZLWKDFHWRQH
E 3ODFHULVHURQEDVHDQGHQVXUHLWLVPRXQWHG
VTXDUHO\
,QLWL O , H '7
F $WWDFKWKHKDUQHVVDVVHPEO\
'HHS5LVHU3DVV+DUQHVV$VVHPEO\RYHUGHHS
ULVHUDQGSRVLWLRQ7RS6WUDSDERYHORZHUULE
6KDOORZ5LVHU)RUVKDOORZULVHUSRVLWLRQ
7RS6WUDSEHORZWRSULE
3XOO7RS6WUDSWLJKWZLWKFDPEXFNOH
3RVLWLRQ'URS6WUDSVLQOLQHZLWKEDVH
FRUQHUV
/RRS+DUQHVV5LQJVRYHUFRUQHUV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
F $WWDFKWKHKDUQHVVDVVHPEO\FRQWLQXHG
(QVXUHULVHUVLWVVTXDUHO\RQWKHEDVHXVLQJ
DVSLULWOHYHO
3XOOVWUDSLQWHQVLRQDQGWKHQJHQWO\UDWFKHW
XQWLOZHEELQJKDVZRXQGLWVHOIDQGLVORFNHG
LQSODFH)URPWKLVSRLQWDGGWZRIXOO
UDWFKHWV
5HSHDWIRURSSRVLWHFRUQHUDQGWZR
UHPDLQLQJFRUQHUV
G &RQQHFWZHOGLQJOHDGWRWHUPLQDOV
,03257$17
/
(QVXUHZHOGLQJOHDGVDUHVXSSRUWHG
+DQGOHZHOGWHUPLQDOVZLWKFDUH
H %HJLQZHOG
'R127ZHOGFKDPEHUPRUHWKDQRQFH
:HOG7LPH &RROLQJ7LPH
0LQXWHV 0LQXWHV
$IWHUFRROLQJWLPHWRUHOHDVHZHEELQJ
SXOODQGKROGUHOHDVHWDERQWRSDVVHPEO\
WRRYHUULGHUDWFKHWLQJIXQFWLRQ
,03257$17
)RU(:EODFNXQLWV21/<
6WRSZHOGPDQXDOO\DIWHUPLQXWHV
7ULPEDFNZHOGLQJOHDGVKURXGE\PPIRUULVHU
ZLWKVKURXGHGZHOGSLQV()RUDQJHXQLWVZLOOVWRS
DXWRPDWLFDOO\DIWHUPLQXWHV
+HLJKWDGMXVWPHQWWRVXLWÀQDOJUDGHOHYHO
KHLJKW 0DLQWDLQPP
XSVWDQGWRHQVXUH
ZDWHUWLJKWOLG
ORFDWLRQLVFRUUHFW
XSVWDQGWRHQVXUH
ZDWHUWLJKWOLG
+LJKOLJKW7ULPPDUNRQULVHUZLWKDPDUNHU ORFDWLRQLVFRUUHFW
SHQ7ULPULVHUXVLQJKLJKOLJKWHGWULPPDUN
DVDJXLGHDQGHQVXUHFXWHGJHLVVTXDUHDQG
IODW5HPRYHDQ\EXUUVXVLQJKDQGVFUDSHU
7ULPXVLQJKDQGVDZRUMLJVDZ21/<
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
$WWDFKJDVNHWWRFKDQQHOLQXQGHUVLGHRIOLG
3RVLWLRQHQGVRIJDVNHWWRJHWKHUILUVWDQG
ZRUNWKHJDVNHWDURXQGWKHFKDQQHO
$IWHUZHOGLQJULVHUWRWDQNVXPSEDVH
YDFXXPWHVWWRSURYHWLJKWQHVVRIWKH
FRPSOHWHVXPS
5HFRPPHQGHG'HSWK6HWWLQJIW0D[
6HHQRWHRQ7LJKWQHVV7HVWLQJLQVHFWLRQ
(QVXUHSOXJVDUHUHSODFHGLQ7HVW3RUWVDIWHU
WHVWLQJWRPDLQWDLQOLTXLGWLJKWV\VWHP
'(7$,/'
)LQDOEDFNÀOOLQJ
3ULRUWREDFNILOOLQJWKHVXPSOLGPXVWEHLQSRVLWLRQWRSUHYHQW
DQ\GHIOHFWLRQRIWKHULVHU
$FFHSWDEOHEDFNILOOPDWHULDOVDUH
:
HOOURXQGHGSHDJUDYHOVL]HPPµWRPPµ
&
UXVKHGURFNVL]HPPµWRPPµ
&
OHDQZDVKHGVDQG
,03257$17
%DFNILOOPDWHULDOVKRXOGEHIUHHIURPLFHRUDQ\RUJDQLFVLOWRU
SHDW
3DUWLFXODUFDUHVKRXOGEHWDNHQWRHQVXUHHQRXJKEDFNILOOLVODLG
GRZQDURXQGWKHXQGHUVLGHRIWKHFKDPEHUZKHUHLWRYHUKDQJV
WKHWDQNDFFHVVVKDIWIODQJH
1RPHFKDQLFDOFRPSDFWRUVVKRXOGEHXVHGVXFKDVYLEUDWLQJSODWHVFRPSDFWRUVRUURDGUROOHUV
7LJKWQHVVWHVWLQJ
7KHFKDPEHUFDQEHWHVWHGIRUWLJKWQHVVXVLQJWKH8336\VWHP,QWHJULW\7HVWLQJ8QLWGHWDLOHG
LQWKHWRROLQJVHFWLRQRIWKH833,QVWDOODWLRQ0DQXDO
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$83332/<(7+</(1(',63(16(56803
0RXQWGLVSHQVHUVXPS
7KHWRSRIWKHVXPSPRXQWLQJIUDPHPXVWEHÁXVKZLWKWKHÀQLVKHGLVODQG
VXUIDFH
6HFXUH WKH VXPS ZLWK WLPEHU EDWWHQV DQG RU VFUHZV RU DQJOH LURQ LVODQG
IRUP
0DUN WKH SLSH HQWULHV IRU SURGXFW DQG YDSRXU OLQHV IRU WKH DSSURSULDWH
GLVSHQVHUPRGHO
0DUNWKHFRUUHFWHQWU\KHLJKWWRDOORZFRUUHFWIDOOQRUPDOO\PSHUP
RU LQFK SHU IRRW WR WKH 8QGHUJURXQG 6WRUDJH7DQN 867 RU QH[W
GLVSHQVHUVXPS
,IUHTXLUHGWKHVXPSULVHUFDQEHFXWGRZQWRKHLJKWOHDYLQJPPUDLQ
OLSDERYHWKHIUDPHDQGWKHPRXQWLQJIUDPHUHSRVLWLRQHGE\GULOOLQJDQGUH 1RWH7KH 833 HOHFWURIXVLRQ
EROWLQJLQWKHQHZIUDPHSRVLWLRQV HQWU\ VHDOV RU 5
,QVWDOODQ\833HQWU\VHDOVDFFRUGLQJWRWKHLUVSHFLÀF,QVWUXFWLRQV FDQEHLQVWDOOHGEHIRUHPRXQWLQJ
GLVSHQVHUVXPSV6XPSDVVHPEO\
VHTXHQFHFDQEHYDULHG
0RXQWVWDELOL]HUEDUV
6HH6WDELOLVHUEDULQVWUXFWLRQVIRU'6'6'6'6
6XPSVLQWKH833,QVWDOODWLRQ0DQXDO
$GMXVWVKHDUYDOYHSRVLWLRQ
6HFXUH WKH HPHUJHQF\ VKXW RII YDOYH WR WKH PRXQWLQJ SODWH XVLQJ WKH WKUHH
$OOHQVHWVFUHZV
$VVHPEOHWKHVKHDUYDOYHPRXQWLQJSODWHWRWKHVWDELOL]HUXVLQJWKH8EROWV
VXSSOLHG
$GMXVWWKHVKHDUYDOYHKHLJKWWRHQVXUHWKDWWKHVKHDUYDOYHJURRYHLVÁXVK
ZLWKWKHLVODQGÀQLVKJUDGH
7LJKWHQDOOVWDELOL]HUDVVHPEO\EROWVLQWKHLUÀQDOSRVLWLRQV
$VVHPEOHULVHU
:KHQ XVLQJ D 833 ULVHU UHFRPPHQGHG LQVWDOO WKH WHUPLQDWLRQ ÀWWLQJ HJ
137LQWRWKHHPHUJHQF\VKXWRIIYDOYH
7KHULVHUPXVWEHFXWWKHFRUUHFWOHQJWKVRWKDWWKH833WHHRUHOERZFHQWUH
OLQHLVLQOLQHZLWKWKHHQWU\ÀWWLQJ
:HOGLQJFDQEHGRQHLQVXPSRUSULRUWRKDQJLQJVKHDUYDOYH
2WKHUZLVH WKUHDG DQ DSSURSULDWH OHQJWK VFKHGXOH VWHHO ULVHU RU ÁH[
FRQQHFWRULQWRWKHERWWRPRIWKHHPHUJHQF\VKXWRIIYDOYH
(OHFWULFDOFRQGXLW
7KH'6VXPSIUDPHLVSUHGULOOHGZLWKWKUHHKROHVJLYLQJWKHRSWLRQWR
URXWHWKHFRQGXLWH[WHUQDOWRWKHVXPSEXWZLWKLQWKHIUDPH(QVXUHKROHVDUH
FRUUHFWZD\DURXQG
)RURWKHUVXPSPRGHOVFRQGXLWVHDOVZLOOKDYHWREHLQVWDOOHGDVWKH\GRQRW
KDYHSUHGULOOHGIUDPHKROHV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
&RQFUHWHDQGEDFNÀOO
7KHVXPSPXVWEHVHFXUHGLQWKHLVODQGIRUPXVLQJWKHEUDFNHWVLQWKHVXPS
PRXQWLQJIUDPHSULRUWREDFNÀOODQGFRQFUHWHSRXULQJ
%DFNÀOOLQJ
$FFHSWDEOHEDFNÀOOPDWHULDOVDUH
,03257$17%DFNÀOOPDWHULDOVKRXOGEHIUHHIURPLFHRUDQ\
RUJDQLFVLOWRUSHDW
1RPHFKDQLFDOFRPSDFWRUVVKRXOGEHXVHGVXFKDVYLEUDWLQJSODWHVFRPSDFWRUV
RUURDGUROOHUV
,QVSHFWLRQ0DLQWHQDQFH
833 GLVSHQVHU VXPSV DUH GHVLJQHG WR SURYLGH VHFRQGDU\ FRQWDLQPHQW RI
GLVSHQVHUVDQGSLSLQJRUFRQQHFWLRQV
6XPSVPXVWEHUHJXODUO\LQVSHFWHGDQGFKHFNHGIRUWKHSUHVHQFHRISHWUROHXP
SURGXFWV
$Q\OLTXLGGHWHFWHGPXVWEHUHPRYHGSURPSWO\DQGGLVSRVHGRIFRUUHFWO\DQG
WKHFDXVHRIWKHSUREOHPUHFWLÀHG
/RQJ WHUP SUHVHQFH RI SHWUROHXP SURGXFWV LQ VXPSV ZRXOG LQYDOLGDWH
3HWUR7HFKQLN·V8336\VWHPZDUUDQW\
7LJKWQHVVWHVWLQJ
7KHFKDPEHUFDQEHWHVWHGIRUWLJKWQHVVXVLQJWKH8336\VWHP
,QWHJULW\7HVWLQJ8QLWGHWDLOHGLQWKHWRROLQJVHFWLRQRIWKH833
,QVWDOODWLRQ0DQXDO
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$83367$%,/,6(5%$5
)2586(,1'6'6'6'668036
+ROGVWDELOLVHUEDULQSRVLWLRQDQGFKHFNWKHQXPEHU
8QGRPRXQWLQJEROWV
RIVSDFHUSODWHVUHTXLUHGRQHDFKVLGH
$VVHPEOHRQHVLGHRIWKHVWDELOLVHUEDU3DVVEROWV
3ODFHFLUFXODUFKDQQHOQXWVLQDSSUR[LPDWHO\WKHFRUUHFW
WKURXJKKROHVLQVWDELOLVHUEDUDQGWKURXJKVSDFHU
ORFDWLRQRQHDFKVLGHRIWKHVXPS
SODWHVLIUHTXLUHG
$WWDFKDQGFRPSOHWHDOOLQWHUQDOVXPSSLSHZRUN 7LJKWHQEROWVIXOO\RQFHVKHDUYDOYHVDUHFRUUHFWO\
LQFOXGLQJVKHDUYDOYHDVVHPEO\ ORFDWHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$8330(&+$1,&$/(175<6($/
(QWU\6HDO+ROH6DZ )RULQVWDOODWLRQRQÁDWVXPSVXUIDFHV
FRPSDWLELOLW\FKDUW
0HDVXUHDQGPDUNWKHFHQWUHSRVLWLRQRIWKHUHTXLUHGSLSHVXPS
+ROHVDZ &RPSDWLEOH SHQHWUDWLRQ
&RGH
PP 6HDOV
6HOHFWWKHFRUUHFWVL]HKROHVDZIRUWKHVHOHFWHGSHQHWUDWLRQVHDO
+6&6
DQGÀWWRPDQGULOO
8 ,HPPKROHVDZIRU36VHDODQGPPKROHVDZIRU
(,) +6 36VHDO
(,)
5HPRYHWKHEROWVQXWVZDVKHUVDQG-XELOHH&OLSV+RVH&ODPSV
)(%' +6
IURPWKHVHDODQGVWRUHLQDVDIHSODFH
6HDOV
+6
)(%' 5HPRYHWKH%DFNLQJ5LQJIURPWKHVHDO
6HDOV +6
&HQWUHWKH5LQJRYHUWKHFXWKROH8VHWKHKROHVLQWKH5LQJDVD
6%& +6&6
WHPSODWHIRUWKHSRVLWLRQVRIWKHVHDOEROWKROHVDQGGULOO
36 +63
36 +63 7ULPWKHUXEEHUVHDOERRWIRUWKHLQVWDOODWLRQRIHLWKHUPP
RUPPGRXEOHZDOOSLSHXVLQJDVKDUSNQLIH
5HÀWWKH%DFNLQJ5LQJRYHUWKHVHDOUXEEHUERRW
3RVLWLRQWKHVHDOUXEEHUERRWDQGULQJRQWKHLQVLGHZDOORIWKH
1RWH :KHQ GULOOLQJ *53 FKDPEHUVXPSOLQLQJXSWKHEROWKROHV
)53 VXPSV VDIHW\ HTXLSPHQW
VKRXOG EH ZRUQ LH PDVN DQG 3DVVWKHEROWWKURXJKWKHFKDPEHUVXPSZDOOIURPWKHRXWVLGH
JRJJOHV DQGDWWDFKQXWDQGZDVKHUVHFXULQJWKHVHDOLQWRSRVLWLRQ
7LJKWHQXSDOOWKHEROWVLQWXUQDQGFRPSOHWHRQHÀQDOWLJKWHQLQJFKHFN
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$833(/(&752)86,21(175<6($/6(5,(6
&XWKROHLQVXPSZDOO 6FUDSHDURXQGIXVLRQDUHD
8VHPPôKROHVDZIRUÀWWLQJ 8VHVFUDSHUSURYLGHGLQ833WRRONLW
&OHDQIXVLRQDUHDRQVXPSZLWK$FHWRQH
&OHDQIXVLRQDUHDRQVHDOZLWK$FHWRQH
5HPRYHVRLOVÀQJHUSULQWVDQGPRLVWXUH
7HVWWLJKWQHVVDJDLQVWVXPSZDOODOODURXQG
WKHVHDOXVLQJDSLHFHRIFDUG
&ODPSVHDOWRVXPS
(QVXUHVVXUIDFHVDUHLQFORVHFRQWDFW
&URVVWKHFODPSEDUVIRUEHVWUHVXOWV
5HDOLJQVHDOZLWKVXPSXQWLODOOJDSVDUH
UHPRYHG
833(/(&752)86,216($/$33/,&$7,216
2QFHWKHIXVLRQVHDOKDVEHHQVXFFHVVIXOO\ZHOGHGRQWRWKHVXPSLWPXVWEHOHIWWRFRROVWUHVVIUHHIRUPLQXWHV
'HSHQGLQJRQWKHVSHFLÀFDWLRQRIWKHVLWHWKHUHDUHWKUHHRSWLRQVWRWDNHIURPWKLVSRLQWRQZDUGV
D)XVLRQZHOGDSRO\HWK\OHQHERRW
E$WWDFKDÁH[LEOHHQWU\ERRW
F)XVLRQZHOGD833SRO\HWK\OHQHGXFWSLSHOLQH
D)86,21:(/',1*$32/<(7+</(1(%227
6&
ZHOGLQJ
FRXSOHU
&OHDQWKHVFUDSHGVSLJRWWKHHQGRIWKHERRWDQG $WWDFKWKHERRWWRWKHVSLJRWRIWKHHQWU\VHDO
WKHLQVLGHRID6&ZHOGLQJFRXSOHUZLWK XVLQJWKHZHOGLQJFRXSOHU(QVXUHWKHUHDUHQR
FOHDQLQJVROYHQW$FHWRQHUHFRPPHQGHG H[WHUQDOVWUHVVHVDFWLQJRQWKHDVVHPEO\
:HOGWKHFRXSOHUXVLQJWKHJUHHQVHFRQGDU\
FRQWDLQPHQWZHOGLQJOHDGV/HDYHWRFRROIRU
PLQXWHV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
$77$&+,1*$)/(;,%/((175<%227
7ULPWKHÁH[LEOHERRWWRWKHGHVLUHGSLSH 6OLGHWKHERRWRYHUWKHVHDOOLSDQGWLJKWHQRQ
GLDPHWHU ZLWKDMXELOHHFOLS
6OLGHWKHSLSHWKURXJKWKHVHDODQGWKHRSHQLQJ
7LJKWHQWKHERRWRQWRWKHSLSHXVLQJDQRWKHU
LQWKHERRWDQGFXWWRWKHGHVLUHGOHQJWK
MXELOHHFOLS
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)86,21:(/',1*83332/<(7+</(1('8&73,3(
6&
ZHOGLQJ
FRXSOHU
:HOGWKLVDVVHPEO\XVLQJVHFRQGDU\ZHOGLQJOHDG )XOO\DEUDGHVXUIDFHRIWKHSDUWRIWKHGXFWWKDW
*UHHQ LVWREHZHOGHGXVLQJHPHU\FORWK
$OORZWRFRROIRUDWOHDVWPLQXWHV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
$WWDFKWKHGXFWSLSHWRWKHUHGXFHUXVLQJ
:LSHGRZQWKHVFUDSHGGXFWSLSHXVLQJD WKHPPFRXSOHU
FOHDQLQJVROYHQWDFHWRQH (QVXUHWKHUHDUHQRH[WHUQDOVWUHVVHV
DFWLQJXSRQWKHDVVHPEO\
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$833(/(&752)86,216($/
&XWKROHLQVXPSZDOO
6FUDSHDURXQGIXVLRQDUHDXVLQJ833
8VHPPKROHVDZ+6&6IRU
KDQGKHOGVFUDSHU
VHDO
&OHDQIXVLRQDUHDRQVXPSZLWKDFHWRQH &OHDQIXVLRQIDFHRIVHDOZLWKDFHWRQH
&RQQHFWZHOGHUDQGZHOGXVLQJUHG
RUDQJHOHDGVPDUNWLPHRIZHOGHJ
&ODPSVHDOWRVXPSXVLQJ¶&/$03·WRRO
DP
&URVVWKHFODPSEDUVIRUEHVWUHVXOWV
$OORZPLQXWHVFRROLQJEHIRUHUHPRYLQJ
FODPS
H
SLS
W
HQ
H
QP
SLS
WDL
DU \
RQ
3ULP
\F
GDU
RQ
6HF
$OORZMRLQWWRFRROWRDPELHQWWHPSHUDWXUH ,IXVLQJMXVWSULPDU\PPSLSHJRWR
DSSUR[LPDWHO\PLQXWHVEHIRUHSXWWLQJDQ\ ,IXVLQJVHFRQGDU\FRQWDLQPHQWPP
VWUHVVRQWKHÀWWLQJ SLSHJRWR
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,QVWDOOLQJDVHDOZLWKSULPDU\PPSLSH
6FUDSHIRUPP
0DUNSLSH IURPPDUNLQJ
6OLGHSULPDU\SLSHWKURXJKVHDOWR 5HPRYHSLSHIURPVHDO
ÀQDOSRVLWLRQ 6FUDSHIURPFORVHVWPDUNHGDUHDWRWKH
0DUNSLSHLQVLGHWKHVXPSDJDLQVWWKHVHDO SLSHHQGIRUPPWRZDUGVWKH
VSLJRW HQGRIWKHSLSH
&OHDQUHGXFHU
6FUDSH
PP &OHDQ
&OHDQIURPHQGRISLSHWRPP
SDVWWKHVFUDSHG]RQHZLWKDFHWRQH
6FUDSHWKHVSLJRWRIWKHVHDOLQVLGHWKHVXPS &OHDQLQVLGHRIWKHVHDOZLWKDFHWRQH
&OHDQLQVLGHRIVHULHVUHGXFHUZLWK
DFHWRQH
6OLGH
6OLGH
6OLGHSLSHWKURXJKVHDO
6OLGHUHGXFHURQWRVSLJRWRI
(QVXUHUHGXFHULVVOLGRQWRWKH
WKHVHDO
SULPDU\SLSHDVLWSDVVHVLQWRVXPSODUJHHQG
ÀUVW
:HOGWRVHDOVSLJRWDQG
&RPSOHWHWKHWHUPLQDWLRQRIWKHSULPDU\
SULPDU\SLSHXVLQJJUHHQZHOGLQJFDEOH
SLSHWRWKHWDQNWRSGLVSHQVHUYHQWVWDFNRU
$OORZPLQXWHVIRUWKHZHOGWRFRRO
ÀOOSRLQW
EHIRUHSXWWLQJDQ\VWUHVVRQWKHDVVHPEO\
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,QVWDOOLQJDVHDOZLWKVHFRQGDU\&RQWDLQPHQWPP
&XW6&SLSH
&XWSULPDU\ PP6FUDSH
6FUDSH]RQH$
SLSH PP
PP
PP
6FUDSH
&XW6HFRQGDU\SLSHDWRXWHUVHDOVSLJRW 6FUDSHLQQHUDQGRXWHUVHDOVSLJRWVDV
6OLGHSULPDU\SLSHWKURXJKWKHVHDODQGFXWDW VKRZQ
ÀQDOWHUPLQDWLRQSRVLWLRQ 6FUDSHDUHDVRISLSHVDVVKRZQ
&OHDQ &OHDQ
&OHDQ
=RQH$
PP &OHDQ &OHDQ
&OHDQIURPHQGRISULPDU\SLSHWRPP &OHDQERWKVSLJRWVRIWKHVHDOZLWKDFHWRQH
SDVWWKHVFUDSHG]RQHZLWKDFHWRQH &OHDQLQQHUERUHRI6&ZLWKDFHWRQH
&OHDQVFUDSHGHQGRI6HFRQGDU\&RQWDLQPHQW &OHDQLQQHUERUHRIZLWKDFHWRQH
SLSHZLWKDFHWRQH
6OLGH
:HOGWRVHDOVSLJRWDQGSULPDU\
&RPSOHWHWKHWHUPLQDWLRQRIWKHSULPDU\
SLSHXVLQJJUHHQZHOGLQJFDEOH
SLSHWRWKHWDQNWRSGLVSHQVHUYHQWVWDFNRU
$OORZPLQXWHVIRUWKHZHOGWRFRROEHIRUH
ÀOOSRLQW
SXWWLQJDQ\VWUHVVRQWKHDVVHPEO\
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*$833(/(&752)86,216($/
6(5,(6:,7+,17(*5$7('&283/(5
7KH(,)6HDOFDQDFFRPPRGDWHHLWKHUPP3ULPDU\RUPP6HFRQGDU\&RQWDLQPHQW
SLSH,QWKLVLQVWDOODWLRQJXLGHWKHSULPDU\SLSHLVEHLQJXVHG:KHQXVLQJ6HFRQGDU\&RQWDLQPHQW
HQVXUH WKHUH LV VXIÀFLHQW VSDFH LQVLGH WKH VXPSFKDPEHU WR DFFRPPRGDWH \RXU 6HFRQGDU\
&RQWDLQPHQWWHUPLQDWLRQÀWWLQJV
)LW8337HUPLQDWLRQÀWWLQJWRWDQNÀWWLQJV
(QVXUHWKHPHWDOWDQNWRSÀWWLQJVDUH
)LQGWKHFHQWUHRIWKHSLSHVWXEDQGH[WHQG
SHUSHQGLFXODUWRWKHFKDPEHUZDOO
WKLVOLQHWRWKHFKDPEHUZDOODQGPDUN
6FUDSH
KHUH
WKHQ
FOHDQ
ZLWK
DFHWRQH
6FUDSHWKHDUHDRIWKHFKDPEHUDURXQGWKH
8VLQJPP833+ROHVDZ+6SODFH
GULOOHGKROHXVLQJDKDQGVFUDSHU8336&5
PDQGUHORQPDUNIURPRXWVLGHRIFKDPEHU
+$5
DQGGULOOKROH
&OHDQZLWKDFHWRQH
&OHDQ
WKLVHQWLUH
VXUIDFHZLWK
DFHWRQH
&ODPSWKHVHDOWRWKHFKDPEHUZDOOXVLQJWKH
&OHDQWKHVHDO·VIXVLRQULQJDUHDXVLQJDFHWRQH
FODPS
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
0DUNSLSHHLWKHU
VLGHRIHQWU\VHDO
5HPRYHSLSHDQGVFUDSHWKHDUHDRIWKHSLSH &OHDQHQWLUHOHQJWKRISLSHWREHSDVVHG
ZKLFKZLOOEHZHOGHGWRWKHHQWU\ÀWWLQJ WKURXJKÀWWLQJXVLQJDFHWRQH
EHWZHHQWKHWZRPDUNV &OHDQLQVLGHRIHQWU\ÀWWLQJZLWKDFHWRQH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,167$//,1*833)53(175<),77,1*
)/$7)$&('6803621/<
,OOXVWUDWLRQVVKRZVRPHZKLWHÀWWLQJV
DQGVRPHEODFN
,PSRUWDQW,QIRUPDWLRQ ,QVWDOODWLRQPHWKRGLVWKHVDPHIRUDOO
2QO\LQVWDOORQHVHDODWDWLPH
832/60&LVWKHRQO\833DSSURYHGERQGLQJSDVWH832/&RGH83
5HIHUWRLQVWUXFWLRQVDWWKHEDFNRIWKLVLQVWDOODWLRQJXLGHIRUFRUUHFWXVHRIERQGLQJSDVWH
2QO\PL[HQRXJKERQGLQJSDVWHIRURQHHQWU\ÀWWLQJDWDWLPH
,IZRUNLQJLQDFOLPDWHKRWWHUWKDQ)&VWRUHERWKUHVLQDQGKDUGHQHUDFWLYDWRULQFROGZDWHUIRU
DSSUR[LPDWHO\PLQVEHIRUHXVH
.HHSERQGLQJSDVWHRXWRIGLUHFWVXQOLJKW
2QFHWKHKDUGHQHUKDVEHHQDGGHGWKHERQGLQJSDVWHLVRQO\ZRUNDEOHIRUPLQXWHV$IWHUWKLVLWEHFRPHV
XQZRUNDEOHDQGORVHVLW·VERQGLQJSURSHUWLHV
:KHQXVLQJ%RQGPDVWHU(DOZD\VHQVXUHWKDWVTXLUWVRIPL[HGFRPSRXQGDUHVTXLUWHGIURPWKHPL[LQJQR]]OH
SULRUWRSXWWLQJDQ\FRPSRXQGRQÀWWLQJV7KLVZLOOHQVXUHWKDWFRPSRXQGLVIXOO\PL[HGEHIRUHEHLQJDGGHGWRWKH
ÀWWLQJV
%DVLF.LW1HHGHG
)53HQWU\ÀWWLQJ
[)53FDSVRUGHUVHSDUDWHO\127(LQWHUQDODQGH[WHUQDOFDSVGLIIHULQVL]HH[WHUQDO
FDSVDUHPDUNHGZLWKDQ¶;·
1LWULOH*ORYHVQRWLQFOXGHG
&OHDQLQJVROYHQW7ULFKORURHWK\OHQHRU$FHWRQHQRWLQFOXGHG
%RQGPDVWHU(WZRSDUWVVHDODQWKDUGHQHU
$SSOLFDWRU*XQ
&RPSRVLWHERQGLQJSDVWH832/EUDQGRQO\832/&RGH83XVLQJRWKHUSDVWH
)LWWLQJZUHQFK
LQYDOLGDWHVZDUUDQW\
)LWWLQJZUHQFK)(%722/RU)(%722/VKRZQULJKW
*ULWDEUDVLYHSDSHU(PHU\FORWK
,QVWDOODWLRQ2YHUYLHZ
,QWHUQDOFDS
)53HQWU\VHDOÀ[HGÁDQJH
([WHUQDOFDS
)53HQWU\VHDO
PRYHDEOHÁDQJH
6XPSZDOOH[WHUQDOIDFH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
3UH,QVWDOODWLRQ&KHFN
%HIRUHFRPPHQFLQJRQWKHLQVWDOODWLRQRIWKH833)53HQWU\ÀWWLQJVPDNHVXUHWKDWWKHVXPSWREH
ZRUNHGRQKDVEHHQIXOO\YDFXXPWHVWHG,IDOHDNLVGHWHFWHGWKHVXPSPXVWEHUHSODFHGRUÀ[HGSULRUWR
HQWU\ÀWWLQJLQVWDOODWLRQ
,QVWDOODWLRQ0HWKRG
'ULOOKROHXVLQJKROHVDZ
PPIRU)(%'&RGH+6
8QVFUHZPRYDEOHÁDQJHDQGUHPRYHIURPÀWWLQJ
ôPPIRU)(%'&RGH+6
3UHFOHDQÀWWLQJÁDQJHVZLWKDFHWRQH
&KHFNÀWWLQJZLOOSDVVWKURXJKWKHVXPSZDOOEHIRUH
FRQWLQXLQJ
8VLQJ*5,7HPHU\RUDUHG6FRWFKEULWHDEUDVLYH
SDGDEUDGHERWKIDFHVRIPRYDEOHDQGÀ[HGÁDQJHV
&OHDQDOODEUDGHGDUHDVRIÀWWLQJDQGVXPSDQG
RI)53VHDO
XVLQJFOHDQLQJVROYHQW
8VLQJHPHU\DEUDGHLQWHUQDODQGH[WHUQDODUHDVRI
VXPSWREHERQGHG
$GG%RQGPDVWHU(WRWKHJURRYHRIWKHÀ[HGÁDQJH $GG%RQGPDVWHU(WRWKHJURRYHRQPRYDEOHÁDQJH
XVLQJWKHDSSOLFDWRUJXQ XVLQJWKHDSSOLFDWRUJXQ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)LWXQLWWRVXPSZDOOÀ[HGÁDQJHRQH[WHUQDOZDOO
DQGWLJKWHQPRYDEOHÁDQJHRQWRWKUHDGE\KDQG
7LJKWHQIXOO\XVLQJÀWWLQJZUHQFK
IURPLQVLGHWKHVXPS
$OORZWRFXUHDWOHDVWKRXUV
)LOOSLHUFLQJ·VLQÁDQJHVZLWK%RQGPDVWHU(DQG
FUHDWHÀOOHWULQJRI(DURXQGRXWVLGHRIERWK
ÁDQJHV
0LG,QVWDOODWLRQ&KHFN3RLQW
%HIRUHFRPPHQFLQJVWHSRIWKHLQVWDOODWLRQHQVXUHWKHIROORZLQJLVWUXH
(UHVLQKDVFXUHG
'RXEOHZDOOVXPSVKDYHEHHQWHVWHGZLWK833YDF7HVWXQLW
$Q\HQWU\OHDNVGHWHFWHGKDYHEHHQUHZRUNHG
$OOHQWU\ÀWWLQJVWHVWHGWLJKW
7KHQH[WSDUWRIWKHLQVWDOODWLRQLVWKHDVVHPEO\RIWKHFRYHUGLVFVXVLQJ832/ERQGLQJSDVWH7KLVFDQEHFDUULHGRXWEHIRUH
FRPPHQFLQJSLSLQJ25DVWKHODVWZRUNRQWKHSLSLQJV\VWHPSURYLGHGWKHGLVFVDUHORRVHÀWWHGEHIRUHSLSLQJ
86,1*832/
3UHFDXWLRQVZLWK832/
'RQRWVWRUHDWWHPSHUDWXUHVDERYH)
,IDPELHQWWHPSHUDWXUHH[FHHGV)WKHQFRROWLQLQFROGZDWHUIRUPLQXWHV
+LJKWHPSHUDWXUHGUDPDWLFDOO\VKRUWHQVZRUNLQJWLPHWROHVVWKDQUHTXLUHGIRULQVWDOODWLRQ
'RQRWXVH832/RQFHLWVWDUWVWRJRRIIPDWHULDOORVHVDGKHVLRQDQGVHDOLQJSURSHUWLHVGLVFDUGDQGXVHQHZPL[
:RUNLQJWLPHLVDSSUR[LPDWHO\PLQXWHVDW)
+DYHHYHU\WKLQJUHDG\WRDVVHPEOHEHIRUHVWDUWLQJ
2QO\SUHSMXVWEHIRUHXVLQJ832/WRDYRLGUHFRQWDPLQDWLRQRUR[LGLVDWLRQ
:HDUQLWULOHJORYHV
0L[LQJ832/
2QO\PL[HQRXJKIRURQHFRYHUGLVFDWDWLPH
0L[5DWLRUHTXLUHGLVSDUWVKDUGHQHUWRSDVWH
$JRRGJXLGHLVDJROIEDOORISDVWHWRDSHDRIKDUGHQHU
2SWLRQDOFRORUHGKDUGHQHUDVVLVWVYLVXDOPL[HIIHFWLYHQHVV
(QVXUHHYHQPL[RIKDUGHQHUDQGSDVWH
2QFHPL[HGZRUNLQJWLPHLVDSSUR[LPDWHO\PLQXWHV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
&OHDQEUDVVÁDQJHVZLWKDFHWRQH &OHDQLQWHUQDOIDFHDQGHGJHVRIFDSVZLWKDFHWRQH
$EUDGHEUDVVÁDQJHVZLWKHPHU\FORWK $EUDGHÀWWLQJFDSVZLWKHPHU\FORWK
5H&OHDQEUDVVÁDQJHVZLWKDFHWRQH &OHDQZLWKDFHWRQH
)LWH[WHUQDOFRYHUFDSRYHUÀWWLQJVSLJRWVDQGSUHVV
7RWDOO\ÀOOH[WHUQDOFRYHUFDSZLWK832/60& ÀUPO\DJDLQVWH[WHUQDOVXPSZDOO
ERQGLQJSDVWHDVVKRZQ &OHDQDQGVPRRWKH[FHVVUHVLQZLWKWKXPEDURXQG
HGJHRIFDS
$OORZWKHERQGLQJSDVWHWRFXUHEHIRUH
HOHFWURIXVLRQUHIHUWRPDQXIDFWXUHUVLQVWUXFWLRQV
5HSHDWVWHSVIRULQWHUQDOFRYHUFDS
2QFHFXUHGWKHHQWU\VHDOFDQEHWLJKWQHVVWHVWHG
DVUHTXLUHG
:HOGLQJ833&RD[LDOGRXEOHZDOO3LSHWRWKH(QWU\)LWWLQJ
7KH833VHFRQGDU\FRQWDLQPHQWSLSHWHUPLQDWHVRQWKHRXWVLGHRIWKHVXPSZDOOZKHUHLWLVZHOGHGGLUHFWO\WRWKHHQWU\
ÀWWLQJVSLJRWXVLQJDVHFRQGDU\ZHOGLQJFRXSOHU6&6&7KHSULPDU\SLSHSDVVHVWKURXJKWKHÀWWLQJDQGLQWR
WKHVXPS2QWKHLQVLGHHLWKHUDQ(OHFWURIXVLRQUHGXFHURUDWHUPLQDWLRQERRWFDQEHXVHGWRVHDORIIWKHLQWHUVWLWLDOVSDFH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
833$&&(66&29(5,167$//$7,21
7KHIROORZLQJLQVWUXFWLRQVUHIHUVSHFLÀFDOO\WRWKH[PP
[833DFFHVVFRYHU7KHSULQFLSOHVRIUHLQIRUFLQJ
WKHVXUURXQGLQJFRQFUHWHDQGZDWHUUXQRIIDQJOHVDUHPDLQWDLQHG
WKURXJKWKHHQWLUH833FRYHUVUDQJH7KHODUJHPPµ
GLDPHWHUFLUFXODUFRYHULVVOLJKWO\GLIIHUHQWDVLWKDVWZRVSULQJV
LQVLGHWKHVSULQJER[KRZHYHUWKHSULQFLSOHRIVHSDUDWLQJDQG
UHÀWWLQJWKHFRYHUIURPWKHIUDPHLVWKHVDPH
,QVWDOODWLRQLQVWUXFWLRQV
6HSDUDWHWKHFRYHUIURPWKHIUDPHVHHLQVWUXFWLRQVEHORZ
&UHDWH D UHLQIRUFHG FRQFUHWH IRXQGDWLRQ IRU WKH IUDPH PDLQWDLQLQJ D FOHDU
RSHQLQJXQGHUWKHIUDPH[PP
:DUQLQJ7RIDFLOLWDWHGUDLQDJHRIVXUIDFHZDWHUWKHIUDPHVKRXOG
EHLQFOLQHGWRZDUGVWKHUHDU(QVXUHWKHUHZLOOEHDVORSHIRUVXUIDFH
ZDWHUGUDLQDJHIURPOLSRIIUDPHWRIRUHFRXUWVXUIDFHRQFHIUDPHLVÀ[HGLQÀQDO
SRVLWLRQ
6HSDUDWLQJWKHFRYHUIURPIUDPHWZRRSHUDWRUVUHTXLUHG
8QORFNDQGRSHQWKHFRYHUWREHWZHHQDQGXVLQJWKHORFNLQJKDQGOH
3&+3KRWRV
/HYHUXSDQGUHPRYH6SULQJ%R[&RYHU3KRWR
&RQWLQXHRSHQLQJFRYHUWRWRWDOO\RSHQSRVLWLRQFLUFD3KRWR
/LIWFRYHUIURPIUDPH3KRWR
:DUQLQJ7KHFRYHULVKHDY\NJ
5HÀWWLQJWKHFRYHUWRIUDPHWZRRSHUDWRUVUHTXLUHG
3ODFHWKHFRYHULQWRWKHIUDPHDWFLUFD
:DUQLQJ,QWKLVSRVLWLRQWKH6SULQJ6KDIWPXVWEHFRUUHFWO\ORFDWHGLQWRWKH
VHDWLQWKHIUDPH3KRWR
&ORVHWKHFRYHUWREHWZHHQDQG3KRWR
5HÀWWKH6SULQJ%R[&RYHU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
0DLQWHQDQFH
$SSO\JUHDVHWRVSULQJHYHU\\HDU
7KHUHLVDUXEEHUJDVNHWRQWKHXQGHUVLGHRIWKHFRYHU7RHQVXUHORQJWHUP
ZDWHUWLJKWQHVVWKHGUDLQDJHFKDQQHOLQWKHIUDPHDQGWKHJDVNHWVKRXOGEH
NHSWFOHDURIGHEULV
7RUHQHZWKHJDVNHW
6FUDSHRIIROGJDVNHW
&OHDQRIIDOOROGDGKHVLYHIURPFRYHUXVLQJDOFRKROPHWKVRUVLPLODU
$SSO\DGKHVLYH6XSHUJOXH*HORUVLPLODUWRFKDQQHORQXQGHUVLGHRIFRYHU
3XVKQHZJDVNHWLQWRFKDQQHO
&OHDQRIIDQ\H[FHVVDGKHVLYHDURXQGJDVNHWDQGFORVHDQGORFNFRYHU
&DVW LURQ FRYHU PD\ EH UHSDLQWHG ZLWK DQ\ QRQVOLS SDLQW IRU DHVWKHWLF
SXUSRVHV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8/3,3(,167$//$7,21,16758&7,216
*HQHUDO
7KHVHLQVWUXFWLRQVFRYHU3HWUR7HFKQLN833SLSHZRUNV\VWHPVIRUDSSOLFDWLRQVLQ
YROYLQJQRQPHWDOOLFXQGHUJURXQGSLSHZRUNIRUÁDPPDEOHOLTXLGVDV
,QWHJUDO3ULPDU\6HFRQGDU\361RUPDO9HQW199DSRU5HFRYHU\95
$VVHPEO\ DQG LQVWDOODWLRQ VKRXOG RQO\ EH XQGHUWDNHQ E\ D WUDLQHG DQG FHUWLÀHG
3HWUR7HFKQLN833V\VWHPVLQVWDOOHUXVLQJ833LQVWDOODWLRQSURFHGXUHV$Q\DVVHP
EO\E\QRQWUDLQHGLQVWDOOHUVRUGHYLDWLRQIURP3HWUR7HFKQLN833V\VWHPVLQVWDO
ODWLRQSURFHGXUHFRXOGUHVXOWLQGDPDJHRUOHDNDJHWRWKHV\VWHPLQYDOLGDWLRQRI
ZDUUDQW\RUSHUVRQDOLQMXU\
)RUSLSHZRUNDSSOLFDWLRQVDV8*13619 95833([WUDOLQHGSLSHVKRXOG
EHXVHG
3HWUR7HFKQLN8333URGXFW&RGHVLQFOXGH
833)LWWLQJV&RGHV &RGHNH\
;;== :HOGVRFNHW
;;<<== (OERZ ;;; 6L]H
;;== (OERZ <<< 6L]HLIDSSOLFDEOH
;; 6WXE === 'HVFULSWLRQ
;; )ODQJH 137 1DWLRQDOSLSHWKUHDG
;; *DVNHW 6& 6HFRQGDU\FRQWDLQPHQW
;;<<== 7HH 73 7HVWSRUW
;;<<== 5HGXFHU (,) (OHFWURLQWHJUDWHGIXVLRQ
;;== (QGFDS %637 %ULVWLVKVWDQGDUGSLSHWKUHDG
;;== 7HUPLQDWLRQ 36 ,QWHJUDO3ULPDU\6HFRQGDU\
;;== &RXSOLQJ 9 1RUPDOYHQWYDSRUUHFRYHU\
;;<<== 5HGXFHUZLWKVRFNHW / ([WHQGHG
;;;<<< 6&7HUPLQDWLRQ
833,QWHJUDO3ULPDU\6HFRQGDU\3LSH6\VWHP
833,QWHJUDO3ULPDU\6HFRQGDU\SRO\DPLGHOLQHGSRO\HWK\OHQHSLSHLVGHVLJQHG
IRUXVHZLWKKLJKO\DJJUHVVLYHIXHOVDFKLHYLQJ]HURRUQHDU]HURSHUPHDWLRQ
8331RUPDO9HQW 9DSRU5HFRYHU\3LSH6\VWHP
833 ([WUD SRO\DPLGH OLQHG SRO\HWK\OHQH SLSH LV GHVLJQHG IRU XVH DV 19 95
OLQHV
$ZLGHUDQJHRIÀWWLQJVDUHDYDLODEOHIURP3HWUR7HFKQLNIRU8*13619 95
DSSOLFDWLRQV ZLWK 833 SLSHZRUN 833 SLSHZRUN VKRXOG RQO\ EH XVHG ZLWK 833
ÀWWLQJV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
5DWLQJV
&RGH 'HVFULSWLRQ $SSOLFDWLRQ 8/5DWLQJ
;;;36ô 36 YHSVLJ
;;;36 833([WUDLQWHJUDO3ULPDU\ YH+J
8*1361995
;;;36 6HFRQGDU\SLSHV\VWHP 6& YHSVLJ
;;;36 YH+J
;;;9 833([WUDQRUPDOYHQWDQGYDSRU YHSVLJ
8*119 95
UHFRYHU\SLSHV\VWHP YH+J
;;;9 833([WUDQRUPDOYHQWDQGYDSRU YHSVLJ
8*119 95
UHFRYHU\SLSHV\VWHP YH+J
%HQG5DGLXV
&RLOV 6WLFNV &RLOV 6WLFNV
PP PP PP PP PP PP
ô
IWµ IWµ IWµ IWµ IWµ
:DUPZHDWKHU QD
P P P P P
IWµ IWµ IWµ IWµ IWµ
&ROGZHDWKHU QD
P P P P P
IWµ IWµ IWµ IW IWµ
9HU\FROGZHDWKHU QDP
P P P P P
3HWUR7HFKQLN833SLSHZRUNLVIRUXQGHUJURXQGXVHRQO\
,W LV GHVLJQHG IRU XVH ZLWK SHWUROHXP SURGXFWV DOFRKROV DQG DOFRKROJDVROLQH
PL[WXUHV LQFOXGLQJ 0RWRU9HKLFOH )XHOV &RQFHQWUDWHG )XHOV +LJK %OHQG )XHOV
$YLDWLRQDQG0DULQH)XHOV
833SLSHZRUNLVGHVLJQHGIRURSHUDWLRQEHWZHHQDQG)
833 SLSH ZRUN V\VWHP FRPSOLHV ZLWK 8QGHUZULWHUV /DERUDWRULHV 8/
VWDQGDUG
6WRUDJH
3LSHVVKRXOGQRWEHVWRUHGLQGLUHFWVXQOLJKW3URGXFWLQWHQGHGWREHVWRUHG
RXWVLGHLQH[FHVVRIPRQWKVVKRXOGEHFRYHUHG
3LSHVVKRXOGEHNHSWDZD\IURPVKDUSREMHFWV
'URSVDQGLPSDFWVGXULQJWUDQVLWDQGVWRUDJHPD\FDXVHGDPDJHDQGOHDNLQJ
833 SLSHV DUH VXSSOLHG ZLWK GLVWLQFWLYH FRORU FDS WR SUHYHQW FRQWDPLQDWLRQ
7KHVHFDSVPXVWEHNHSWLQSODFHGXULQJVWRUDJH
,QGLYLGXDOSLSHOHQJWKVVKRXOGEHVWDFNHGLQDS\UDPLGQRWPRUHWKDQPKLJK
ZLWKWKHERWWRPOD\HUIXOO\UHVWUDLQHGE\ZHGJHV:KHUHSRVVLEOHWKHERWWRP
OD\HURISLSHVVKRXOGEHODLGRQWLPEHUEDWWHQV
%XQGOHGSDFNVRISLSHVVKRXOGEHVWRUHGRQFOHDUOHYHOJURXQGVXSSRUWHGE\
WLPEHUEDWWHQV%XQGOHVVKRXOGQRWEHVWRUHGPRUHWKDQPKLJK
&RLOVVKRXOGEHVWRUHGÁDWRQÀUPOHYHOJURXQGWKDWKDVVXLWDEOHSURWHFWLRQIRU
WKHERWWRPRIWKHFRLO$VWDFNVKRXOGQRWH[FHHGPKLJK,IVWRUHGRQHGJH
FRLOVPXVWEHVHFXUHGDJDLQVWDSURSHUO\DQFKRUHGVXSSRUWIRUDVKRUWWLPH
SHULRGRQO\SDUWLFXODUO\LQZDUPZHDWKHU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
+DQGOLQJ
$ÁDWEHGYHKLFOHIUHHIURPVKDUSREMHFWVRUSURMHFWLRQVVKRXOGEHXVHGIRU
WUDQVSRUWLQJSLSHOHQJWKVRUFRLOV1HYHUGUDJSLSHVRUFRLOV
:LGH EDQG QRQ PHWDOOLF VOLQJV VKRXOG EH XVHG ZKHQ OLIWLQJ SLSH EXQGOHV E\
FUDQH'RQRWXVHFKDLQVKRRNVRUKDZVHUV
&RLOV RI VPDOO GLDPHWHU DUH HDVLO\ PDQ KDQGOHG )RUNOLIWV FDQ EH XVHG WR OLIW
ODUJHUGLDPHWHUFRLOVEXWWKHIRUNVPXVWEHSURWHFWHGWRDYRLGGDPDJHWRWKH
SLSH
$OORZIRUVRPHEHQGRISLSHGXULQJORDGLQJDQGXQORDGLQJ
(QVXUHWKDWOLIWLQJSRLQWVDUHHYHQO\VSUHDG
7DNHH[WUDFDUHZKHQUHOHDVLQJFRLOV&RLOVDUHVHFXUHGE\RXWHUUHVWUDLQLQJ
EDQGVZLWKDGGLWLRQDOLQQHUEDQGVEHLQJSURYLGHGWRSURWHFWWKHLQQHUOD\HUV
:LWKFRLOVWDQGLQJXSRQJURXQGDVVKRZQLQSKRWRUHPRYHWKHEDQGVFDUHIXOO\
IURPWKHRXWHUOD\HUÀUVWVRWKDWRQO\WKHOHQJWKRISLSHUHTXLUHGLVUHOHDVHG
6XFFHVVLYHOD\HUVRISLSHFDQEHUHOHDVHGE\UHPRYLQJWKHLQQHUEDQGVDVWKH
SLSHLVGUDZQDZD\IRUPWKHFRLO
([HUFLVHVSHFLDOFDUHZKHQKDQGOLQJSLSHLQZHWRUIURVW\FRQGLWLRQV8VHJORYHV
IRUDGGLWLRQDOJULS
9LVXDO LQVSHFWLRQ VKRXOG EH SHUIRUPHG RQ WKH SLSHV SULRU WR DVVHPEO\ DQG 8QFRLOLQJSRVLWLRQ
LQVWDOODWLRQ$Q\SLSHVKRZLQJVLJQLÀFDQWVLJQVRIGDPDJHRUFUDFNVVKRXOGQRW
EHXVHG
$VVHPEO\ ,QVWDOODWLRQ
3HWUR7HFKQLN 833 SLSH ZRUN LV GHVLJQHG IRU XVH ZLWK WKH ODWHVW 3HWUR7HFKQLN
ÀWWLQJVSDUWVDQGDFFHVVRULHVDQGVKRXOGEHLQVWDOOHGXVLQJWRROVHTXLSPHQWDQG
SUDFWLFHVGHWDLOHGLQWKHODWHVW3HWUR7HFKQLN,QVWDOODWLRQ*XLGH3URGXFW&DWDORJ
VHHZZZSHWURWHFKQLNFRPGRZQORDGV
7KH SUHSDUDWLRQ RI SLSH LI HOHFWURIXVLRQ ÀWWLQJV DUH XVHG DVVHPEO\ RI ÀWWLQJV
LQVWDOODWLRQDQGEDFNÀOOLQJRIWUHQFKHVVKRXOGRQO\EHXQGHUWDNHQE\DWUDLQHGDQG
FHUWLÀHG3HWUR7HFKQLN833V\VWHPVLQVWDOOHUXVLQJ833LQVWDOODWLRQSURFHGXUHV
$Q\DVVHPEO\E\QRQWUDLQHGLQVWDOOHUVRUGHYLDWLRQIURP3HWUR7HFKQLN833V\V
WHPVLQVWDOODWLRQSURFHGXUHFRXOGUHVXOWLQGDPDJHRUOHDNDJHWRWKHV\VWHPLQYDOL
GDWLRQRIZDUUDQW\RUSHUVRQDOLQMXU\
1RWH0LQLPXPEHQGUDGLXVRISLSHVVKRXOGQRWEHH[FHHGHGGXULQJLQVWDOODWLRQ
3LSHZRUNLVLQWHQGHGIRUXVHLQQRUPDOVRLODSSOLFDWLRQV
EHUHSRUWHGWRWKHVLWHRSHUDWRU
,IOHDNDJHRUGDPDJHWRWKHSLSHZRUNV\VWHPLVYHULÀHGWKHSUREOHPVDUHWR
EHUHSRUWHGWRWKHVLWHRSHUDWRU7KHPDQXIDFWXUHPXVWVXEVHTXHQWO\EHLQ
IRUPHGDWWKHFRQWDFWDGGUHVVEHORZ
8QGHUQRFLUFXPVWDQFHVVKRXOGOHDNGHWHFWLRQHTXLSPHQWRUDODUPVEHGLV
DEOHG
5HSDLUDQGUHSODFHPHQWRI3HWUR7HFKQLN·V833SLSHZRUNVKRXOGEHSHUIRUPHGE\
DTXDOLÀHGSHUVRQ7KHPHWKRGRIUHSDLULQJSLSHZRUNFDQEHIRXQGLQEXOOHWLQ¶833
SLSHZRUN UHSDLU DQG UHSODFHPHQW LQVWDOODWLRQ SURFHGXUH· VHH ZZZSHWURWHFKQLN
FRPGRZQORDGV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8VH
3HWUR7HFKQLN833SLSHZRUNLVGHVLJQHGIRUXVHXQGHUJURXQGDQGVKRXOGQRWEH
XVHGZLWKRXWFRQVXOWDWLRQDERYHJURXQG
2QLQVWDOODWLRQVLWHRZQHUVVKRXOGEHDGYLVHGRIEHVWSUDFWLFHVVXFKDVNHHSLQJ
VXPSVIUHHIURPGHEULVDQGDQ\IXHOVSLOODJH
0DLQWHQDQFH
3ULRUWREXULDODQGXVH3HWUR7HFKQLN833SLSHZRUNV\VWHPVVKRXOGEHWHVWHGIRU
OHDNWLJKWQHVV7KLVVKRXOGEHSHUIRUPHGE\DTXDOLÀHGSHUVRQ
3HWUR7HFKQLN UHFRPPHQGHG PHWKRG IRU DVVHVVLQJ OHDN WLJKWQHVV FDQ EH IRXQG
LQ EXOOHWLQ¶833 SLSHZRUN WLJKWQHVV WHVWLQJ SURFHGXUH VHH ZZZSHWURWHFKQLNFRP
GRZQORDGV
)ROORZLQJLQVWDOODWLRQVLWHRZQHUVVKRXOGEHDGYLVHGRIDQ\LQIRUPDWLRQFRQFHUQLQJ
LQVSHFWLRQSHULRGVDQGOHDNWHVWLQJUHTXLUHPHQWV
3UREOHPV
,QWKHHYHQWRIDOHDNDJHWKHIROORZLQJRSWLRQVVKRXOGEHWDNHQ
,IOHDNDJHRUGDPDJHLVGHWHFWHGLQDQ\SDUWRIWKHV\VWHPWKHSUREOHPVDUHWR
EHUHSRUWHGWRWKHVLWHRSHUDWRU
,I OHDNDJH RU GDPDJH WR WKH SLSHZRUN V\VWHP LV YHULÀHG WKH SUREOHPV DUH
WREHUHSRUWHGWRWKHVLWHRSHUDWRU7KHPDQXIDFWXUHPXVWVXEVHTXHQWO\EH
LQIRUPHGDWWKHFRQWDFWDGGUHVVEHORZ
8QGHU QR FLUFXPVWDQFHV VKRXOG OHDN GHWHFWLRQ HTXLSPHQW RU DODUPV EH
GLVDEOHG
5HSDLUDQGUHSODFHPHQWRI3HWUR7HFKQLN·V833SLSHZRUNVKRXOGEHSHUIRUPHGE\
DTXDOLÀHGSHUVRQ7KHPHWKRGRIUHSDLULQJSLSHZRUNFDQEHIRXQGLQEXOOHWLQ¶833
SLSHZRUN UHSDLU DQG UHSODFHPHQW LQVWDOODWLRQ SURFHGXUH· VHH ZZZSHWURWHFKQLN
FRPGRZQORDGV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
02',),&$7,21$1'5(3$,52)8336,7(6
7KLV VHFWLRQ LV GHVLJQHG DV DQ DGYLVRU\ JXLGHOLQH RQ WKH KRZ WR PRGLI\ RU
UHSDLUDQH[LVWLQJ833VLWH
7KHVLWHVKRXOGEHSUHSDUHGLQDGYDQFHWRHLWKHUFORVHRUUHVWULFWDFFHVVWR
WKHZRUNDUHDDQGDOOHTXLSPHQWVKRXOGEHFKHFNHGWRHQVXUHWKDWLWLVLQ
RSHUDWLRQDOFRQGLWLRQ
'XULQJDQ\PRGLÀFDWLRQRUUHSDLUZRUNWR833SLSHZRUNWKHVDIHW\RIRQVLWH
SHUVRQQHOLVSDUDPRXQWDQGDOOQDWLRQDOUHJLRQDODQGORFDOKHDOWKDQGVDIHW\
OHJLVODWLRQVKRXOGDOZD\VEHDGKHUHGWR
7KH IROORZLQJ ¶FKHFNOLVW· JLYHV D VWHSE\VWHS JXLGH WR HQVXULQJ WKDW WKH
PRGLÀFDWLRQLVFDUULHGRXWLQWKHVDIHVWSRVVLEOHPDQQHU+RZHYHUUHOHYDQW
ORFDO KHDOWK DQG VDIHW\ UHJXODWLRQV VKRXOG WDNH SUHFHGHQFH RYHU WKH DGYLFH
JLYHQKHUH
0HWKRG
6ZLWFKRIIVKXWGRZQVXEPHUVLEOHSXPSDQGGLVSHQVHUVLQZRUNVDUHD
7DJRXWUHPRYHIXVHVRULVRODWLQJEUHDNHUWRSXPSVDQGGLVSHQVHUV
3UHSDUHWRHPSW\SURGXFWLQWRDQDSSURYHGVHDODEOHFRQWDLQPHQWYHVVHO
2SHUDWHWKHKRVHRIWKHSURGXFWGLVSHQVHUFORVHVWWRWKHXQGHUJURXQG
VWRUDJHWDQNWRUHOHDVHSLSHOLQHSUHVVXUHDQGHPSW\SURGXFWLQWR
FRQWDLQHU&RQWLQXHWKLVSURFHVVXQWLOQRIXUWKHUOLTXLGSHWUROHXPLV
GLVFKDUJHG
&KHFNWKHVXPSZKHUHWKHUHSDLULVWREHPDGHZLWKDQ2PHWHU
DQGUHFRUGWKHSUHVHQFHRIVXIÀFLHQWR[\JHQa2EHIRUHDQ\
SHUVRQQHOHQWHUWKHVXPS$LUH[FKDQJHLIQHFHVVDU\
,VRODWHWKHVXEPHUVLEOHSXPSE\FORVLQJWKHLVRODWLRQYDOYHEDOOYDOYH
$OOVHFRQGDU\FRQWDLQPHQWOLQHVZLOOQHHGWRKDYHWKHLUWHVWERRWV
UHPRYHG
2SHQWKHVKHDUYDOYHDFFHVVSRUWVRIWKHDIIHFWHGOLQHVWRDOORZWKH
SHWUROHXPOLTXLGWRGUDLQGRZQWRWKHWDQNVXPS
7KHVXPSDLUVXSSO\VKRXOGEHH[FKDQJHGXQWLOWKH2PHWHUUHFRUGV
WKHSUHVHQFHRIVXIÀFLHQWR[\JHQa2EHIRUHDQ\SHUVRQQHOUH
HQWHUWKHVXPS
5HPRYHWKHSHWUROHXPOLTXLGFRQWDLQPHQWYHVVHOIURPWKHWDQNVXPS
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8QGHUWDNHDQGFRPSOHWHWKHUHSDLUWRWKH833SLSHZRUNDQGÀWWLQJVXS
WRWKHSRLQWRIZHOGLQJLQDFFRUGDQFHZLWK833LQVWDOODWLRQLQVWUXFWLRQV
7KHSLSHVKRXOGEHRSHQWRWKHVXPSWRDOORZWKH1LWURJHQSXUJHWR
LQHUWWKHVXPSDVZHOODVWKHOLQH7KHZHOGLQJOHDGVKRXOGEHDWWDFKHG
WRWKHZHOGLQJFRXSOHUÀWWLQJLQSUHSDUDWLRQIRUHOHFWURIXVLRQ7KH
ZHOGLQJOHDGVKRXOGQRWEHFRQQHFWHGWRWKHZHOGLQJPDFKLQHDWWKLV
VWDJH
7KHDWPRVSKHUHRIWKHVXPSLVWREHFRQWLQXDOO\PRQLWRUHGZLWKWKH
2PHWHUIRUWKHSUHVHQFHRIVXIÀFLHQWR[\JHQa2GXULQJUHSDLU
ZKLOVWSHUVRQQHODUHZLWKLQWKHVXPS
&RQQHFWWKHQLWURJHQVXSSO\WRDVKHDUYDOYHDFFHVVSRUWDQGÁRRGWKH
SURGXFWOLQHDQGVXPSWKH2PHWHUVKRXOGUHFRUGWKHSUHVHQFHRIQR
R[\JHQLQWKHVXPS
2QFHQRR[\JHQLVUHFRUGHGRQWKH2PHWHUWKHZHOGLQJPDFKLQH
DQGSRZHUVXSSO\FDQEHORFDWHGDERYHJURXQGDWWKHIXUWKHVWSRLQW
DWZKLFKWKHZHOGLQJOHDGZLOOUHDFKWKHZHOGLQJPDFKLQHZLWKRXWDQ\
WHQVLRQRQWKHOHDG
2QFRPSOHWLRQRIZHOGLQJF\FOHWKHZHOGHUVKRXOGEHLVRODWHGIURP
WKHSRZHUVXSSO\DQGWKHQLWURJHQSXUJLQJVKRXOGUHFRPPHQFHDQG
FRQWLQXHIRUDSHULRGQROHVVWKDQPLQXWHV
'XULQJWKLVWLPHSHULRGQRSHUVRQQHOVKRXOGHQWHUWKHWDQNVXPSWR
UHPRYHWKHZHOGLQJOHDGV
7KHVXPSDLUVXSSO\VKRXOGEHH[FKDQJHGXQWLOWKH2PHWHUUHFRUGV
WKHSUHVHQFHRIVXIÀFLHQWR[\JHQa2EHIRUHDQ\SHUVRQQHOHQWHU
WKHVXPS
%HIRUHXQGHUWDNLQJDQ\DGGLWLRQDOZRUNRQDQ\RIWKHRWKHUVXPSVWKH
DWPRVSKHUHVKRXOGEHFKHFNHGZLWKWKH2PHWHUDQGUHFRUGVWKH
SUHVHQFHRIVXIÀFLHQWR[\JHQa2LQLWLDWHDLUH[FKDQJHLILQDQ\
GRXEW
$OOWKHHIIHFWHGVKHDUYDOYHVVKRXOGKDYHWKHDFFHVVSRUWUHVHDOHGUHDG\
IRUWKHSURGXFWOLQHWREHSUHVVXUHWHVWHG
3HUIRUPDQ\UHJXODWRU\WHVWLQJUHTXLUHPHQWVDQGVLJQRIIDVUHTXLUHG
2QFRPSOHWLRQRIDVXFFHVVIXOSUHVVXUHWHVWWKHVXEPHUVLEOHSXPSFDQ
EHUHFRQQHFWHGDQGWKHGLVSHQVHUVUHFRPPLVVLRQHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(/(&75267$7,&6$)(7<
$OO833PHWDOWHUPLQDWLRQÀWWLQJVLQWKHÀOOER[DWWKHWDQNWRSDQGXQGHUWKHGLVSHQVHUVKRXOGEHDGHTXDWHO\HDUWKHG
DFFRUGLQJWRORFDOHOHFWULFDOUHJXODWLRQV,ILQGRXEWWKHUHVLVWDQFHRIJURXQGLQJVKRXOGEHN0
(DUWKLQJFDEOHVVKRXOGEHSODVWLFFRYHUHGFRSSHUFRQGXFWRUVRIDWOHDVWPPFURVVVHFWLRQDODUHDDQGVKRXOGEHFRQQHFWHG
WRDQH[FOXVLYHHDUWKHOHFWURGH
1RWH7KHPHWDOÀWWLQJVDWWKHWDQNPDQKROHVKRXOGEHDWHTXDOSRWHQWLDOVRDGGLWLRQDOFDEOHVPD\EHUHTXLUHGWRLQWHUFRQQHFW
WKHPHWDOÀWWLQJV
7KHGUDZLQJVEHORZVKRZKRZWRJURXQGYDULRXVW\SHVRI833PHWDOWHUPLQDWLRQÀWWLQJV
833VHULHVWKHUPRIXVHGWKUHDGHGWHUPLQDWLRQ 833VHULHVWKHUPRIXVHGÁDQJHGWHUPLQDWLRQ
VKRZLQJRSWLRQDOFRXSOLQJÁDQJHV
UHTXLUHVHDUWKLQJVWUDS UHTXLUHVULQJWHUPLQDO
833VHULHVPHFKDQLFDOWHUPLQDWLRQ 833VHULHVPHFKDQLFDOZLSH[PHFKDQLFDO
WHUPLQDWLRQ
UHTXLUHVHDUWKLQJVWUDS UHTXLUHVULQJWHUPLQDO
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
:(/',1*
6&5$3,1*722/,16758&7,216
&2'(6&5.
2SHUDWLRQ0HWKRG
D 0DUNRQWKHSLSHWKHOHQJWKWREHVFUDSHG
E 6HOHFWWKHFRUUHFWLQWHUQDOSLSHPDQGUHODQGSXVKLWLQWRWKHERUHRIWKHSLSH
F +ROGWKHKDQGWRRODQGUHOHDVHWKHWRROSRVWE\ORRVHQLQJWKHERG\WKXPEVFUHZ
G /LIWWKHWRROSRVWDQGORFNLWLQWKHXSSHUSRVLWLRQZLWKWKHERG\WKXPEVFUHZ
H 5HWDLQWKHFXWWLQJWRROVSULQJE\WXUQLQJWKHWKXPEVFUHZRQWKHWRSRIWKHWRROSRVW
XQWLOWKH¶YHH·RQLWVXQGHUVLGHLVGLVHQJDJHGIURPLWVORFDWLQJVORW
I +ROGWKHKDQGWRROGHSUHVVDQGKROGWKHUHOHDVHEXWWRQRQWKHVLGHRIWKHKDQGWRRO
,QVHUWWKHSLSHDQGPDQGUHOLQWRWKHERG\RIWKHKDQGWRRODQGOLQHXSWKHFXWWHU
DERXWPPIXUWKHURQWKHSLSHWKDQWKHPDUN/HWRXWWKHUHOHDVHEXWWRQDQGPRYH
WKHKDQGWRROVOLJKWO\XQWLODFOLFNLVKHDUGWKHIHHGVFUHZLVQRZHQJDJHG
J 5HOHDVHWKHERG\WKXPEVFUHZDQGORZHUWKHWRROSRVWXQWLOWKHWRROSRLQWLVLQFRQWDFW
ZLWKWKHSLSHVXUIDFH5HWLJKWHQWKHERG\WKXPEVFUHZ
K /RDGWKHWRROSRLQWE\WXUQLQJWKHWRROSRVWWKXPEVFUHZXQWLOWKH¶YHH·XQGHUWKH
WKXPEVFUHZLVORFDWHGLQWKHVORW
L 7KHWRROLVQRZVHWDQGUHDG\WRRSHUDWH6LPSO\URWDWHWKHERG\LQDFORFNZLVH
GLUHFWLRQZLWKWKHRSHUDWLQJKDQGOH:KHQWKHERG\KDVVFUHZHGIXOO\EDFNRQWRWKH
PDQGUHOWKHVFUDSHLVFRPSOHWH
M 8QORDGWKHWRROSRLQWE\GLVHQJDJLQJWKH¶YHH·5HPRYHWKHPDQGUHOIURPWKHSLSH
HQVXULQJWKDWWKHSUHSDUHGDUHDLVQRWWRXFKHGRUDOORZHGWRFRPHLQWRFRQWDFWZLWK
DQ\FRQWDPLQDWLQJPDWHULDO
N 7KHPDQGUHOPD\QRZEHUHPRYHGIURPWKHKDQGWRROE\GHSUHVVLQJWKHUHOHDVH
EXWWRQDQGVHSDUDWLQJWKHWZRLWHPV:KHQÀQLVKHGUHWXUQERWKLWHPVWRWKHVWRUDJH
ER[
O 5HPDUNÀQDOLQVHUWLRQGHSWK
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(:(/'(523(5$7,1*0$18$/
:$51,1*833:(/',1*81,760867127%(23(5$7(',1=21($5($6
7RZHOGLQVLGH]RQHWKHXQLWVPXVWEHRSHUDWHGLQ]RQHZLWKRQO\WKHZHOGLQJFDEOHVH[WHQGLQJLQWR]RQH
&216758&7,212)7+(:(/',1*0$&+,1(
6HFRQGDU\&RQWDLQPHQWZHOGLQJFDEOH 7HPSHUDWXUHVHQVRURQ3RZHU&DEOH
%ULGJLQJ/HDGV
/&''LVSOD\ 3ULPDU\ZHOGLQJFDEOH
6(/(&7NH\
(17(5NH\
*(1(5$/
3RZHU&DEOH
$SSOLFDWLRQ
7KH833ZHOGLQJPDFKLQH(:(9LVGHVLJQHG 7KHZHOGLQJPDFKLQHRSHUDWHVRQVWDQGDUGDOWHUQDWLQJ
IRUDXWRPDWLFZHOGLQJRI3ULPDU\DQG6HFRQGDU\833 FXUUHQW1RUPDOÀ[HGSRZHUFRQQHFWLRQVFDQEHXVHG
ZHOGLQJVRFNHWVDQG3ULPDU\HOHFWURIXVLRQÀWWLQJV,W RUDQHOHFWULFDOO\VWDEOHSRUWDEOHJHQHUDWRUZLWKD
LVVXLWDEOHIRUXVHZLWKHQYLURQPHQWWHPSHUDWXUHV UDWHGRXWSXWRIDWOHDVWN:
EHWZHHQ²&DQG 7KHSRZHULQSXWPXVWEHPDLQWDLQHGEHWZHHQWKH
IROORZLQJYDOXHV
2SHUDWLQJ7KH0DFKLQH 9a9²9DQG²+]
833ZHOGLQJVRFNHWVDQGHOHFWURIXVLRQÀWWLQJVDUH
ZHOGHGXVLQJDFRQVWDQWFXUUHQW7KHZHOGLQJPDFKLQH 7KHLQSXWYROWDJHZLOOEHDXWRPDWLFDOO\PHDVXUHG
DXWRPDWLFDOO\DSSOLHVWKHFRUUHFWDPRXQWRIHQHUJ\IRU E\WKHPDFKLQHDQGFDQEHVKRZQRQWKHGLVSOD\E\
WKHÀWWLQJEHLQJZHOGHG NHHSLQJWKH6(/(&7NH\SUHVVHGGRZQ$WWKHVDPH
WLPHWKHIROORZLQJLQIRUPDWLRQZLOOEHVKRZQ
7KHPDFKLQHWDNHVLQWRDFFRXQWWKHDPELHQW
WHPSHUDWXUHZKHQZHOGLQJ)RUWKLVUHDVRQWKH
:HOGLQJPRGH 3ULPDU\0RGH3ULPU\RU
PDFKLQHVKRXOGDOZD\VEHDWWKHVDPHDPELHQW
6HFRQGDU\0RGH
WHPSHUDWXUHDVWKHÀWWLQJWKDWLVWREHZHOGHG7KH
6HFQGUGHSHQGLQJRQZKLFK
WHPSHUDWXUHVHQVRULVRQWKHSRZHUFDEOHLQVLGHWKH
ZHOGLQJFDEOHLVFRQQHFWHG
XQLW
7KHPDFKLQHKDVDEDFNOLJKW/&'GLVSOD\ZLWK $FWXDOZHOGLQJWLPHGHSHQGLQJRQWKHDPELHQW
OLQHVRIFKDUDFWHUVHDFK7KHXVHUJXLGHGPHQXLV WHPSHUDWXUH
DYDLODEOHLQGLIIHUHQWODQJXDJHV
'XULQJWKHZHOGLQJSURFHVVWKHIROORZLQJNH\YDOXH 0HDVXUHGWHPSHUDWXUHV
ZLOOEHVKRZQRQWKHGLVSOD\ , 7HPSHUDWXUHPHDVXUHGLQVLGHWKHPDFKLQH
$SSOLHGFXUUHQW 2 $PELHQWWHPSHUDWXUHPHDVXUHGE\WKHVHQVRU
5HPDLQLQJZHOGLQJWLPHFRXQWLQJGRZQ WHPSHUDWXUH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
23(5$7,1*,16758&7,216
:HOGLQJ
6WHS (QWU\DFWLRQE\RSHUDWRU ,QIRUPDWLRQRQGLVSOD\
&RQQHFWSRZHUFDEOHWRSRZHUVRXUFH
6ZLWFKWKHPDFKLQHRQXVLQJWKH21
2))VZLWFKRQWKHVLGHRIWKHPDLQ 3HWUR7HFKQLN
SDQHO 3ULPDU\0RGH
$IWHUDSSUR[LPDWHO\
7KHZHOGLQJPRGHLVGLVSOD\HG VHFRQGV
GHSHQGLQJRQWKHZKLFKZHOGLQJFDEOHLV
&RQQHFWZHOGLQJ
FRQQHFWHGWKHGLVSOD\VKRZV
HOHPHQW
5HG2UDQJHFDEOH3ULPDU\0RGH
*UHHQFDEOH6HFRQGDU\0RGH
3XVKWKHFRQQHFWRUVÀUPO\RQWRWKH
WHUPLQDOSLQVRIWKHÀWWLQJDQGSXVK :HOGLQJVWDUWZLWK
GRZQWRWKHVWRS (17(5
:HOGLQJVWDUWVE\SUHVVLQJWKH(17(5 :HOGLQJLQSURJ
NH\ $VHF
$IWHUZHOGLQJ
7KHGLVSOD\VKRZVWKHFXUUHQWLQ$PSV
DQGWKHDFWXDOZHOGLQJWLPHLQVHFRQGV
:HOGLQJFRPSOHWHG
FRUUHFWHGIRUDPELHQWWHPSHUDWXUH
FRXQWLQJGRZQWR $IWHUDSSUR[LPDWHO\
VHFRQGV
8QSOXJ
FRQQHFWRUV
&KRRVLQJWKHODQJXDJH
6WHS (QWU\DFWLRQE\RSHUDWRU ,QIRUPDWLRQRQGLVSOD\
6ZLWFKRQWKHPDFKLQHDQGZDLWIRUWKH
LQIRUPDWLRQLQGLFDWHGRQWKHULJKWWR
DSSHDURQWKHGLVSOD\ &RQQHFW
1RZHOGLQJFDEOHVWREHFRQQHFWHG ZHOGLQJHOHPHQW
GXULQJWKHVHWXSRSHUDWLRQ
3UHVVWKH6(/(&7NH\DQGWKH(17(5
NH\WRJHWKHUWRHQWHUODQJXDJHVVHWXS ĺ
*%'()5,7
PRGH 1/(66(3/
&KRRVHWKHGHVLUHGODQJXDJHE\
SUHVVLQJWKH6(/(&7NH\VHYHUDOWLPHV ĺ
*%'()5,7
1/(66(3/
&RPSOHWHWKLVRSHUDWLRQE\SUHVVLQJWKH
(17(5NH\
5DFFRGDUH
7KHODQJXDJHRI\RXUFKRLFHDSSHDUV HOHPHQWR
0HDVXULQJGLVSOD\WKHDFWXDOGDWD
6WHS (QWU\DFWLRQE\RSHUDWRU ,QIRUPDWLRQRQGLVSOD\
6ZLWFKRQWKHPDFKLQHDQGZDLWIRUWKH
LQIRUPDWLRQLQGLFDWHGRQWKHULJKWWR &RQQHFW
DSSHDURQWKHGLVSOD\ ZHOGLQJHOHPHQW
+ROGGRZQWKH6(/(&7NH\
9,QSXWYROWDJH
0RGH3ULPDU\RU6HFRQGDU\
GHSHQGLQJRQZKLFKFDEOHLVFRQQHFWHG 90RGHV
V$FWXDOZHOGLQJWLPH ,&2&
,,QWHUQDOWHPSHUDWXUHRIWKHPDFKLQH
2$PELHQWWHPSHUDWXUH
3UHVVWKH6(/(&7NH\IRUDWOHDVW
VHFRQGVWRVKRZWKHIROORZLQJ
LQIRUPDWLRQ *RRG
)DXOW\
*RRGQXPEHURIVXFFHVVIXOZHOGV
)DXOW\QXPEHURIIDXOW\ZHOGV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(UURUPHVVDJHV 2WKHUXVHIXOWLSV
,QIRUPDWLRQRQ 0HDQLQJ 6ROXWLRQ
WKHGLVSOD\ 3RVLWLRQLQJWKHPDFKLQH
7KHLQSXWYROWDJHRIWKH &KHFNWKHFRQQHFWLRQ*HWWKH $OZD\VSODFHWKHZHOGLQJPDFKLQHLQWKH
,QSXWYROWDJH VDPHDPELHQWWHPSHUDWXUHWRWKHÀWWLQJVWR
SRZHUVRXUFHLVWRRKLJKDQG JHQHUDWRUFKHFNHGE\DVHUYLFH
WRRKLJK
RXWVLGHWKHWROHUDQFHVRIWKH FHQWUHDQGUHVHW,IQHFHVVDU\ EHZHOGHG7KHUHDURIWKHPDFKLQHQHHGV
DOWHUQDWLQJZLWK
ZHOGLQJXQLW FRQQHFWDORDGDSSUR[
6ZLWFKRII WREHIUHHDQGLWVKRXOGQRWEHGLUHFWO\
:DWWLQSDUDOOHOZLWKWKHXQLW
ZHOGLQJNLW H[SRVHGWRWKHVXQ
7KHLQSXWYROWDJHRIWKH &KHFNWKHFRQQHFWLRQ*HW
,QSXWYROWDJH SRZHUVRXUFHLVWRRORZDQG WKHJHQHUDWRUFKHFNHGE\D
WRRORZ 7KHZHOGLQJPDFKLQHVKRXOGRQO\EH
RXWVLGHWKHWROHUDQFHVRIWKH VHUYLFHFHQWUHDQGUHVHW)XOO\
DOWHUQDWLQJZLWK ZHOGLQJXQLW XQZLQGWKHH[WHQVLRQFDEOHWR RSHUDWHGLQDUHDVRXWVLGH]RQHVDQG
6ZLWFKRII PLQLPLVHUHVLVWDQFH
ZHOGLQJNLW 6ZLWFKRIIWKHPDFKLQHGXULQJEUHDNVLQWKH
7KHLQSXWYROWDJHRIWKH *HWWKHJHQHUDWRUFKHFNHGE\
ZRUNDQGDWWKHHQGRIWKHMRE
,QSXWYROWDJH SRZHUVRXUFHLVÁXFWXDWLQJ DVHUYLFHFHQWUHDQGUHVHW
YDULDEOH 7KHYROWDJHUHJXODWLRQRIWKH
DOWHUQDWLQJZLWK SRZHUVRXUFHLQWHIHUHVZLWK ,IQHFHVVDU\FRQQHFWDORDGRI &RQQHFWRUV
6ZLWFKRII WKHHOHFWURQLFVRIWKHPDFKLQH DSSUR[LPDWHO\WR:DWW 7KHFRQQHFWRUVDWWKHHQGRIWKHZHOGLQJ
ZHOGLQJNLW LQSDUDOOHOZLWKWKHPDFKLQH
FDEOHVQHHGWREHSXVKHGÀUPO\RQWRWKH
7KHUHVLVWDQFHYDOXHRIWKH 8VHRQO\833ZHOGLQJVRFNHWV 833ZHOGLQJVRFNHWVDQGHOHFWURIXVLRQ
FRQQHFWHGÀWWLQJLVWRRKLJK DQGHOHFWURIXVLRQÀWWLQJVDQG
DQGLVRXWVLGHWKHWROHUDQFHV WKHFRUUHFWZHOGLQJFDEOHV
ÀWWLQJVGRZQWRWKHVWRS'LVFRQQHFWLQJWKH
&XUUHQWEHORZ
ORZHUOLPLW RIWKHPDFKLQHZURQJ FDEOHIURPWKH833ZHOGLQJVRFNHWVDQG
DOWHUQDWLQJZLWK HOHPHQW HOHFWURIXVLRQÀWWLQJVPXVWQRWEHGRQHE\
6ZLWFKRII ,Q3ULPDU\PRGHWRRPDQ\ &KHFNWKHUHVLVWDQFHYDOXHV SXOOLQJWKHFDEOH
ÀWWLQJVFRQQHFWHGLQVHULHV 7KHVXPPXVWQRWH[FHHG
ZHOGLQJNLW
,QSXWYROWDJHWRRORZ 6HHLQSXWYROWDJHWRRORZ
5HJXODWLRQHUURULQWKH 6HQGPDFKLQHIRUVHUYLFH 5HSHDWLQJDZHOG
HOHFWURQLFV $GGLQJH[WUDHQHUJ\DIWHUWKHZHOGLQJ
SURFHVVLPPHGLDWHUHSHWLWLRQRIDZHOGE\
5HJXODWLRQHUURULQWKH ,IWKLVHUURURFFXUVVHYHUDO GLVREH\LQJWKHUHSHWLWLRQORFNDQGZLWKRXW
&XUUHQWDERYH HOHFWURQLFV WLPHVLQVXFFHVVLRQWKH
XSSHUOLPLW
DOORZLQJWKHÀWWLQJWRFRROGRZQLVVWULFWO\
PDFKLQHVKRXOGEHVHQWEDFN
DOWHUQDWLQJZLWK WRWKHVXSSOLHU6ZLWFKRII SURKLELWHG2YHUKHDWLQJRIWKHÀWWLQJFDQ
6ZLWFKRII PDFKLQHDQGVZLWFKRQDJDLQ GDPDJHWKHFRPSRQHQWVDQGFDXVHKRW
ZHOGLQJNLW DIWHUVHFRQGV PDWHULDOWREHHMHFWHGIURPWKHZHOG]RQH
/RRVHFRQWDFWLQWKHZHOGLQJ &KHFNZHOGLQJFDEOH FDXVLQJVHYHUHEXUQVRIWKHVNLQ,QDGGLWLRQ
FLUFXLWRUDSRRUFRQQHFWLRQ 3XVKFRQQHFWRUVÀUPO\RQWR SRZHUFRQGXFWLQJHOHPHQWVFRXOGEHFRPH
2SHQVHFRQGDU\
WRÀWWLQJWHUPLQDOSLQ WHUPLQDOSLQVRIWKHÀWWLQJDQG
FLUFXLW
SXVKGRZQWRWKHVWRS
WRXFKDEOH
DOWHUQDWLQJZLWK
6ZLWFKRIIWKHPDFKLQHDQG ,QFDVHRIGRXEWDERXWWKHZHOG833
6ZLWFKRII
VZLWFKLWRQDJDLQDIWHU
ZHOGLQJNLW
VHFRQGV ZHOGLQJVRFNHWVDQGHOHFWURIXVLRQÀWWLQJV
FDQEHZHOGHGDJDLQDIWHUDOORZLQJWKHPWR
DIWHUVZLWFKLQJRQ 7KHSUHYLRXVZHOGKDVEHHQ /HWWKHÀWWLQJFRROGRZQIRU
LQWHUUXSWHGIRURQHRIWKH DWOHDVWRQHKRXUEHIRUHDQHZ FRROIRUDWOHDVWRQHKRXU
PDFKLQH
:HOGZDV UHDVRQVPHQWLRQHGDERYH IXOOZHOGLQJSURFHVVLVVWDUWHG
ZLWKWKHVDPHÀWWLQJ
:HOGLQJLQVHULHV3ULPDU\
IDXOW\
DOWHUQDWLQJZLWK %\SUHVVLQJWKH(17(5NH\ 3ULPU\PRGH
5HSHDWDIWHU WKHPDFKLQHZLOOEHUHVHWIRU ,QWKH3ULPDU\3ULPU\PRGHWKHZHOGLQJ
RQHKRXU ZHOGLQJ PDFKLQHFDQVLPXOWDQHRXVO\ZHOGWZRWR
7KHLQWHUQDOWHPSHUDWXUHRI 6ZLWFKRIIWKHPDFKLQHDQGOHW WKUHHPD[LPXP833ZHOGLQJVRFNHWV
WKHPDFKLQHKDVUHDFKHGWKH LWFRROGRZQLQWKHVKDGHIRUD ÀWWLQJVSURYLGHGWKHIROORZLQJUXOHVDUH
%R[LQWHUQDO FULWLFDOYDOXH7KLVFDQKDSSHQ IHZPLQXWHV
WHPSWRRKLJK HVSHFLDOO\LQWKH3ULPDU\ DSSOLHG
PRGHDIWHUDODUJHQXPEHU 7KHVXPRIWKHFRQQHFWHGUHVLVWDQFHYDOXHV
RIZHOGV FLUFOHGÀJXUHRQ833VRFNHWVPXVWQRWEH
KLJKHUWKDQ
6RIWZDUHRUKDUGZDUHRIWKH 6HQWWKHPDFKLQHIRUVHUYLFH 7KH833ZHOGLQJVRFNHWVWREHZHOGHG
PDFKLQHKDVEHHQGDPDJHG DQGUHSDLUDW3HWUR7HFKQLN
*HQHUDOKDUGZDUH QHHGWREHFRQQHFWHGLQVHULHVXVLQJWKH
HUURU FRORXUHGEULGJLQJOHDGVUHGRU\HOORZ
0DFKLQHVZLWFKHVRIIGXULQJ :URQJSRZHUVXSSO\LQFRUUHFW
LQVXFKDZD\WKDWHDFKÀWWLQJLVDOZD\V
ZHOGLQJ LQSXWYROWDJHHOHFWULFDO FRQQHFWHGE\WZRFDEOHVRIDGLIIHUHQW
LQVWDELOLW\5HVROYHWHPSRUDU\ FRORXUUHGRU\HOORZ
RUSHUPDQHQWLQWHUUXSWLRQ 7RHQVXUHWKDWLWLV2.FKHFNWKDWDOOWKH
ÀWWLQJVJHWZDUPGXULQJWKHZHOGLQJSURFHVV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
:HOGLQJLQ6HFRQGDU\6HFQGU0RGH *XDUDQWHH
8336HFRQGDU\ZHOGLQJVRFNHWPD\QRWEHZHOGHGLQ
VHULHV7KHVHÀWWLQJVFDQEHUHFRJQLVHGE\WKHLUVSHFLDO 7KLVJXDUDQWHHLQFOXGHVWKHUHSDLURUUHSODFHPHQWRIWKH
VPDOOHUWHUPLQDOSLQV7KHVHFRQQHFWLRQVUHTXLUHWKHXVHRI PDFKLQHSURYLGHGLWKDVEHHQXVHGDVGHVFULEHGLQWKLV
DJUHHQ6HFRQGDU\ZHOGLQJFDEOH PDQXDO7KHJXDUDQWHHSHULRGLVRQH\HDUIURPWKHGDWH
RISXUFKDVH
7(&+1,&$/'(7$,/6
:HOGLQJPDFKLQH 0$,17(1$1&($1'6(59,&(
833&RPEL:HOGHU8QLW9 (:(9 )URPDVDIHW\SRLQWRIYLHZDOOFDEOHVQHHGWREH
ZLWK(XURSHDQ6W\OHSOXJ FKHFNHGHDFKWLPHEHIRUHXVH7KHRWKHUSDUWVRIWKH
PDFKLQHDUHPDLQWHQDQFHIUHH
9ROWDJH 9a 7RFOHDQWKHIUDPHDQGWKHGLVSOD\RQO\XVHVRDS\ZDWHU
9WR9 RURWKHUQRQDFLGDQGQRQVFUDWFKLQJFOHDQLQJOLTXLGV
)UHTXHQF\ +]WR 7RHQVXUHDORQJOLIHWLPHRIWKHPDFKLQHLWLV
+] UHFRPPHQGHGWKDWWKHPDFKLQHLVUHWXUQHGIRUVHUYLFH
3RZHUUDWLQJ : RQDUHJXODUEDVLVIRUDFKHFNE\WKH3HWUR7HFKQLN
VHUYLFHRUJDQLVDWLRQ0D[LPXPVHUYLFHLQWHUYDO\HDUV
)XVHVLQSXWVLGH PLQ$VORZ
:HOGLQJYROWDJH 9WR9 5HSDLUVWRWKHPDFKLQHPD\RQO\EHFDUULHGRXWE\
6ZLWFKLQJSRZHURIWKH),VDIHW\VZLWFK P$ 3HWUR7HFKQLNRUE\WKHLUDXWKRULVHGVHUYLFHFHQWUHV
3URWHFWLRQFODVV ,3
,,UHLQIRUFHGLVRODWLRQ
$PELHQWWHPSHUDWXUHOLPLWV &WR&
'LPHQVLRQV
ZLGWK PP
GHSWK PP
KHLJKW PP
WRWDOZHLJKW NJV
$FFHVVRULHV
,QFOXGHG
'HVFULSWLRQ 3HWUR7HFKQLN
&RGH
3ULPDU\833:HOGLQJ&DEOH (:%&&
6HFRQGDU\833:HOGLQJ&DEOH (:%&6&
833%ULGJLQJ/HDGUHGRU\HOORZ (:%&%/
2SHUDWLQJ0DQXDO
$YDLODEOHDVVSDUHSDUWV
'HVFULSWLRQ 3HWUR7HFKQLN
&RGH
3ULPDU\833:HOGLQJ&DEOH (:%&&
6HFRQGDU\833:HOGLQJ&DEOH (:%&6&
833%ULGJLQJ/HDGUHGRU\HOORZ (:%&%/
$SSURYDO
7KLVPDFKLQHKDVWKHVDIHW\PDUNRIWKH6ZLVV$SSURYDO
%RDUG)XUWKHUPRUHWKHPDFKLQHFDUULHVWKH&(PDUNIRU
(XURSHDQFRQIRUPLW\
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(:+$1'+(/':(/'(523(5$7,1*0$18$/
:$51,1*833:(/',1*81,760867127%(23(5$7(',1=21($5($6
7RZHOGLQVLGH]RQHWKHXQLWVPXVWEHRSHUDWHGLQ]RQHZLWKRQO\WKHZHOGLQJFDEOHVH[WHQGLQJLQWR]RQH
127((:ZHOGLQJFDEOHVXVHVSHFLDOSLQFRQQHFWRUV
127UHJXODUSLQFRQQHFWRUV
&RQVWUXFWLRQRIWKHZHOGLQJPDFKLQH SLQ:HOGFDEOH
%ULGJLQJFDEOHV FRQQHFWRU
(:(OHFWURIXVLRQ [
:HOGHU 3RZHURQ,QGLFDWRU
SLQ6HFRQGDU\ )DXOWLQGLFDWRU
ZHOGLQJFDEOH
212))6ZLWFK
RQVLGHRIXQLW
:HOGSURJUHVV/('·V
SLQ3ULPDU\
ZHOGLQJFDEOH
67$576723
EXWWRQ
3LQ)XVLRQFKDPEHU
ZHOGLQJFDEOH
7HPSHUDWXUHVHQVRU
3RZHUFDEOH
$SSOLFDWLRQ 6DIHW\
7KH(:LVGHVLJQHGWRDXWRPDWLFDOO\ZHOG8333ULPDU\ 7KH(:LVGHVLJQHGIRUXVDJHRQFRQVWUXFWLRQVLWHVDQG
DQG6HFRQGDU\&RQWDLQPHQWHOHFWURIXVLRQÀWWLQJV PHHWVDSSOLFDEOH(XURSHDQDQG,QWHUQDWLRQDOVDIHW\VWDQGDUGV
$OVRXVLQJWKHZKLWH$ZHOGLQJOHDGVWKH(:FDQ 7KHPDFKLQHVKRXOGEHKDQGOHGZLWKWKHFDUHXVXDOO\JLYHQWR
EHXVHGWRZHOGWKH833)XVLRQFKDPEHUULVHUWRWKH HOHFWULFDOHTXLSPHQWHVSHFLDOO\GXULQJWUDQVSRUW
FKDPEHUEDVH 7KHPDFKLQHPXVWRQO\EHXVHGRXWVLGHRIKD]DUGRXVDUHDV
,WFDQEHXVHGLQDPELHQWWHPSHUDWXUHVEHWZHHQ& ]RQHVDQG
DQG& (DFKWLPHLWLVXVHGFKHFNWKHFRQGLWLRQRIWKHPDFKLQH
2QO\SHUVRQQHOIXOO\WUDLQHGLQWKHXVHDQGLQVWDOODWLRQRI SDUWLFXODUO\WKHPDLQVSRZHUFDEOH,IDQ\GDPDJHLV
WKH833V\VWHPVKRXOGXVHWKLVHTXLSPHQW GLVFRYHUHGFRQWDFWWKHVXSSOLHULPPHGLDWHO\DQGGRQRWXVH
WKHPDFKLQH
0DLQ)HDWXUHV &KHFNWKHVWDWHRIWKHZHOGLQJFDEOHVEHIRUHXVHDQGUHSODFH
WKHPLIWKHUHLVDQ\GRXEWDERXWWKHLUFRQGLWLRQ
833HOHFWURIXVLRQÀWWLQJVDUHZHOGHGXVLQJDFRQVWDQW
FXUUHQW7KH(:DXWRPDWLFDOO\UHFRJQLVHVWKHÀWWLQJ $OZD\VFKHFNWKDWWKHSRZHUVRXUFHLVZLWKLQWKHSDUDPHWHUV
ZKHQFRQQHFWHGDQGDSSOLHVWKHFRUUHFWDPRXQWRI VKRZQDERYHEHIRUHXVLQJWKH(:
HQHUJ\IRUDVXFFHVVIXOZHOG 1HYHUOLIWRUSXOOWKHPDFKLQHE\LWVSRZHUFDEOHRUWKH
7KH(:WDNHVWKHDPELHQWWHPSHUDWXUHLQWRDFFRXQW ZHOGLQJFDEOHV1HYHUGLVFRQQHFWZHOGLQJFDEOHVE\SXOOLQJWKH
ZKHQFDOFXODWLQJWKHHQHUJ\UHTXLUHGWRZHOGFRUUHFWO\ FDEOHDOZD\VSXOORIIWKHFRQQHFWRUV
,WPXVWWKHUHIRUHEHDOORZHGWRUHDFKDPELHQW
WHPSHUDWXUHEHIRUHXVHDQGPXVWEHDWWKHVDPH /LDELOLW\5HVWULFWLRQV
WHPSHUDWXUHDVWKHÀWWLQJWREHZHOGHG7KHWHPSHUDWXUH
$OOOLDELOLWLHVRIWKHVXSSOLHUDUHLQYDOLGDWHGLQWKHIROORZLQJ
VHQVRULVORFDWHGLQWKHPDLQVFDEOHFODPSFORVHWRWKH
FDVHV
XQLW
7KH(:ZRUNVRQVWDQGDUGDOWHUQDWLQJFXUUHQWDQG 7KH(:LVXVHGRXWVLGHWKHLQGLFDWHGDSSOLFDWLRQDUHD
HLWKHUDPDLQVFRQQHFWLRQRUDJHQHUDWRUFDQEHXVHG 1RQ833ÀWWLQJVRUSLSHDUHXVHG
*HQHUDWRUVPXVWKDYHDUDWHGRXWSXWRIDWOHDVWN: 7KHRSHUDWRUKDVQRWEHHQWUDLQHGWRXVHWKH(:RUWKH
DQGSRZHULQSXWPXVWEHEHWZHHQDQGYROWVDW 833V\VWHP
WR+] 2SHUDWLQJLQVWUXFWLRQVKDYHQRWEHHQREVHUYHG
8QDXWKRULVHGUHSDLUVRUPDLQWHQDQFHKDYHEHHQFDUULHGRXW
7KH(:KDVDQRQRIIEXWWRQDZHOGVWDUWEXWWRQDQG
7KH(:KDVEHHQXVHGRXWVLGHRILWVWHFKQLFDO
DQ/('GLVSOD\VKRZLQJWKHZHOGSURJUHVV7KH/('VFDQ
VSHFLÀFDWLRQ
DOVRVKRZDQ\IDXOWFRQGLWLRQVWKDWPD\DIIHFWWKHZHOG
6DIHW\LQVWUXFWLRQVKDYHQRWEHHQREVHUYHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8VLQJWKH(:
(QVXUHWKDWWKHPDFKLQHLVSRVLWLRQHGRXWVLGHKD]DUGRXV]RQHV
DQG
$OORZWKHPDFKLQHDQGÀWWLQJVWRUHDFKWKHDPELHQW
WHPSHUDWXUHRIWKHVLWH
.HHSWKHPDFKLQHRXWRIGLUHFWVXQOLJKWDQGIUHHRIDQ\ $
REVWUXFWLRQ
0DNHVXUHÀWWLQJVDQGSLSHKDYHEHHQSUHSDUHGLQDFFRUGDQFH
ZLWK833,QVWDOODWLRQLQVWUXFWLRQV
&RQQHFWWKHUHTXLUHGZHOGLQJ
OHDGWRWKH(::HOGHU
35,0$5<ÀWWLQJV 5('OHDG 1RQH
6(&21'$5<ÀWWLQJV *5((1
OHDG %
&RQQHFWZHOGLQJOHDGWRWKH
833IXVLRQÀWWLQJVPDNLQJ
1RQH
VXUHFRQQHFWRUVDUHÀUPO\
SXVKHGRQWRSLQV
&RQQHFWWKH(::HOGHUWR
1RQH
DYSRZHUVXSSO\
<RXFDQHQVXUHWKDW\RXKDYHFRQQHFWHGWKHÀWWLQJV
$OO/('VOLJKWLQ
FRUUHFWO\DQGWKDWWKHZHOGVDUHVXFFHVVIXOE\
VHTXHQFHWKHQJUHHQ
6ZLWFK21 FKHFNLQJWKDWDOORIWKHFRQQHFWHGÀWWLQJVJHWZDUP
SRZHU/('UHPDLQV
DQGWKDWDOORIWKHLQGLFDWRUSLQVDUHH[SRVHGDWWKH
RQ
HQGRIWKHZHOGLQJWLPH
)LUVWZHOGOLJKW ,WLVQRWSRVVLEOHWRGRPXOWLSOHZHOGVRQ
FRPHVRQWKHQOLJKWV 6HFRQGDU\ÀWWLQJV7KHVHFDQEHLGHQWLÀHGE\
3UHVVRUDQJH67$57EXWWRQ
XSXQWLOJUHHQ WKHLUVPDOOHUWHUPLQDOSLQVDQGUHTXLUHWKHXVHRI
XQWLOÀUVWZHOGOLJKWLOOXPLQDWHV
/('LVOLWVKRZLQJ WKHJUHHQZHOGLQJFDEOHV
ZHOGLVFRPSOHWH
/('DQG 2WKHU8VHIXO7LSV
'LVFRQQHFWZHOGLQJOHDGIURP
3RZHU/('UHPDLQV
ÀWWLQJ 6ZLWFKRIIWKHPDFKLQHGXULQJEUHDNVDQGDWWKHHQG
RQ
RIWKHMRE
$OO/('VOLJKWLQ
$/:$<65HVHWIRUQH[WZHOG
VHTXHQFHWKHQJUHHQ 7KHZHOGF\FOHFDQEHVWRSSHGDWDQ\WLPHE\
E\KROGLQJ67$57EXWWRQIRU
SRZHU/('UHPDLQV SUHVVLQJWKH67$576723EXWWRQ7KLVZLOOJHQHUDWH
VHFRQGV
RQ DQHUURUFRGHDQG\RXPXVWZDLWIRUWKHÀWWLQJWR
FRROEHIRUHDWWHPSWLQJWRFRQWLQXH
0XOWLSOH:HOGV ,I\RXKDYHDQ\GRXEWDERXWDZHOGHGMRLQW833
ÀWWLQJVFDQEHZHOGHGDJDLQSURYLGHGWKH\DUHOHIWWR
,Q3ULPDU\PRGHWKH(:FDQVLPXOWDQHRXVO\ZHOGXSWRWKUHH FRROWRDPELHQWWHPSHUDWXUH
833ÀWWLQJVSURYLGHGWKDW
7KHVXPRIWKHUHVLVWDQFHYDOXHVFLUFOHGQXPEHURQ833 1(9(55(:(/'$),77,1*7+$7,667,//:$50
ÀWWLQJVGRHVQRWH[FHHG 6HULRXVÀUHGDPDJHFDQRFFXUDQGKRWPDWHULDO
7KH833ÀWWLQJVDUHFRQQHFWHGWRWKH(:LQVHULHVXVLQJWKH PD\EHHMHFWHGIURPWKHZHOG]RQHFUHDWLQJD
EULGJLQJOHDGVSURYLGHGVHHSKRWRV$ % EXUQLQJKD]DUG$GGLWLRQDOO\SRZHUFRQGXFWLQJ
HOHPHQWVPD\EHFRPHH[SRVHGFUHDWLQJDQ
HOHFWULFDOVKRFNKD]DUG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)DXOW,QGLFDWRUV
:KHQDQHUURUKDVRFFXUUHGGXULQJWKHZHOGF\FOHWKDWZLOOKDYHDQHIIHFWRQWKH
VXFFHVVRIWKHMRLQWWKHUHGZDUQLQJ/('RQWKHULJKWVLGHRIWKHGLVSOD\ZLOOOLJKW
XS$OVRRQHRIWKH´ZHOGSURJUHVVµOLJKWVZLOOOLJKWXSDWWKHVDPHWLPHWRVKRZ
ZKDWW\SHRIIDXOWKDVRFFXUUHG
(UURU
)DXOW,QGLFDWHG 0HDQLQJ 6ROXWLRQ
/HG
&KHFNDQGUHFWLI\SRZHUVXSSO\
3RZHUVXSSO\IDLOXUH 7KHSRZHUVXSSO\ZDVRIIDW &KHFNSOXJFRQQHFWLRQ
GXULQJZHOG VRPHWLPHGXULQJWKHZHOG 5HZHOGÀWWLQJRQO\DIWHULWLVDOORZHGWRFRRO
WRDPELHQWWHPSHUDWXUH
6WRSEXWWRQSUHVVHG 5HZHOGÀWWLQJRQO\DIWHULWLVDOORZHGWRFRRO
GXULQJZHOG WRDPELHQWWHPSHUDWXUH
6XSSO\IUHTXHQF\QRWEHWZHHQ
3RZHUVXSSO\RXWRI &KHFNDQGUHFWLI\JHQHUDWRURXWSXW
DQG+]RU9ROWDJHQRW
OLPLWV &KHFNPDLQVVXSSO\
EHWZHHQ 9
$OORZ(:DQGÀWWLQJWRFRROLQWKHVKDGH
$PELHQWWHPSHUDWXUH 7HPSHUDWXUHRIWKH(:LVQRW
:DLWIRUDPELHQWWHPSHUDWXUHWRUHWXUQWR
RXWRIUDQJH EHWZHHQFDQGF
UDQJH
/RRVHFRQQHFWLRQWRWHUPLQDO 0DNHVXUHFRQQHFWRUVDUHSXVKHGÀUPO\RQWR
SLQ WHUPLQDOSLQV
/RRVHFRQWDFWLQWKHZHOGLQJ &KHFNZHOGLQJFDEOHFRQQHFWLRQDQG
1RRXWSXWFXUUHQW
FLUFXLW FRQWLQXLW\
RSHQFLUFXLW
)DXOW\ÀWWLQJ 5HSODFHÀWWLQJ
6WDUWEXWWRQQRWGHSUHVVHGIRU 6HHRSHUDWLQJVHTXHQFHVWHS
ORQJHQRXJK
5HVLVWDQFHYDOXHRIÀWWLQJLVWRR 8VHRQO\833HOHFWURIXVLRQÀWWLQJVDQG
KLJK FRUUHFWZHOGLQJFDEOH
/RZRXWSXWFXUUHQW 7RRPDQ\ÀWWLQJVFRQQHFWHGLQ &KHFNUHVLVWDQFHFRGHVRQÀWWLQJVGRQRW
VHULHV3ULPDU\PRGHRQO\ H[FHHGDVXPWRWDORI
,QSXWYROWDJHWRRORZ &KHFNVXSSO\YROWDJH
6ZLWFKRIIPDFKLQHDQGVZLWFKRQDJDLQDIWHU
+LJKRXWSXWFXUUHQW 5HJXODWLRQHUURULQHOHFWURQLFV VHFRQGV,ISUREOHPSHUVLVWVUHWXUQ(:
WRVXSSOLHU
7KH(:FDQEHUHVHWDIWHUDIDXOWKDVEHHQUHFWLÀHGE\SUHVVLQJDQGKROGLQJWKH
6WDUW6WRSEXWWRQIRUVHFRQGV
7HFKQLFDO'HWDLOV
8336WRFN&RGH1XPEHU (:975
2SHUDWLQJ)UHTXHQF\ WR+]
3RZHU5DWLQJ Y$
3URWHFWLRQ&ODVV ,3
2SHUDWLQJ7HPSHUDWXUH &WR&
6KLSSLQJ'LPHQVLRQV PPZLGH[PPGHHS[PPKLJK
6KLSSLQJ:HLJKW NJ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
(::(/'(523(5$7,1*0$18$/9
:$51,1*833:(/',1*81,760867127%(23(5$7(',1=21($5($6
7RZHOGLQVLGH]RQHWKHXQLWVPXVWEHRSHUDWHGLQ]RQHZLWKRQO\WKHZHOGLQJFDEOHVH[WHQGLQJLQWR]RQH
127((:ZHOGLQJFDEOHVXVHVSHFLDOSLQFRQQHFWRUV
127UHJXODUSLQFRQQHFWRUV
&RQVWUXFWLRQRIWKHZHOGLQJPDFKLQH
(:(OHFWURIXVLRQ 3RZHURQ,QGLFDWRU 7HPSHUDWXUH6HQVRU
:HOGHU
)DXOWLQGLFDWRU
3LQ)XVLRQFKDPEHU SLQ:HOGFDEOH
ZHOGLQJFDEOH FRQQHFWRU
:HOG
212))6ZLWFK SURJUHVV
/('·V
%ULGJLQJFDEOHV
[
3RZHUFDEOH 67$576723
EXWWRQ
SLQ3ULPDU\ SLQ6HFRQGDU\
ZHOGLQJFDEOH ZHOGLQJFDEOH
$SSOLFDWLRQ 6DIHW\
7KH(:LVGHVLJQHGWRDXWRPDWLFDOO\ZHOG8333ULPDU\ 7KH(:LVGHVLJQHGIRUXVDJHRQFRQVWUXFWLRQVLWHV
DQG6HFRQGDU\&RQWDLQPHQWHOHFWURIXVLRQÀWWLQJV DQGPHHWVDSSOLFDEOH(XURSHDQDQG,QWHUQDWLRQDOVDIHW\
$OVRXVLQJWKHZKLWH$ZHOGLQJOHDGVWKH(:FDQ VWDQGDUGV
EHXVHGWRZHOGWKH833)XVLRQFKDPEHUULVHUWRWKH 7KHPDFKLQHVKRXOGEHKDQGOHGZLWKWKHFDUHXVXDOO\JLYHQ
FKDPEHUEDVH WRHOHFWULFDOHTXLSPHQWHVSHFLDOO\GXULQJWUDQVSRUW
,WFDQEHXVHGLQDPELHQWWHPSHUDWXUHVEHWZHHQ& 7KHPDFKLQHPXVWRQO\EHXVHGRXWVLGHRIKD]DUGRXVDUHDV
DQG& ]RQHVDQG
2QO\SHUVRQQHOIXOO\WUDLQHGLQWKHXVHDQGLQVWDOODWLRQRI (DFKWLPHLWLVXVHGFKHFNWKHFRQGLWLRQRIWKHPDFKLQH
WKH833V\VWHPVKRXOGXVHWKLVHTXLSPHQW SDUWLFXODUO\WKHPDLQVSRZHUFDEOH,IDQ\GDPDJHLV
GLVFRYHUHGFRQWDFWWKHVXSSOLHULPPHGLDWHO\DQGGRQRW
XVHWKHPDFKLQH
0DLQ)HDWXUHV &KHFNWKHVWDWHRIWKHZHOGLQJFDEOHVEHIRUHXVHDQG
833HOHFWURIXVLRQÀWWLQJVDUHZHOGHGXVLQJDFRQVWDQW UHSODFHWKHPLIWKHUHLVDQ\GRXEWDERXWWKHLUFRQGLWLRQ
FXUUHQW7KH(:DXWRPDWLFDOO\UHFRJQLVHVWKHÀWWLQJ $OZD\VFKHFNWKDWWKHSRZHUVRXUFHLVZLWKLQWKH
ZKHQFRQQHFWHGDQGDSSOLHVWKHFRUUHFWDPRXQWRI SDUDPHWHUVVKRZQDERYHEHIRUHXVLQJWKH(:
HQHUJ\IRUDVXFFHVVIXOZHOG
1HYHUOLIWRUSXOOWKHPDFKLQHE\LWVSRZHUFDEOHRUWKH
7KH(:WDNHVWKHDPELHQWWHPSHUDWXUHLQWRDFFRXQW ZHOGLQJFDEOHV1HYHUGLVFRQQHFWZHOGLQJFDEOHVE\SXOOLQJ
ZKHQFDOFXODWLQJWKHHQHUJ\UHTXLUHGWRZHOGFRUUHFWO\,W WKHFDEOHDOZD\VSXOORIIWKHFRQQHFWRUV
PXVWWKHUHIRUHEHDOORZHGWRUHDFKDPELHQWWHPSHUDWXUH
EHIRUHXVHDQGPXVWEHDWWKHVDPHWHPSHUDWXUHDVWKH
ÀWWLQJWREHZHOGHG7KHWHPSHUDWXUHVHQVRULVORFDWHGDW /LDELOLW\5HVWULFWLRQV
WKHUHDURIWKHXQLWRQWKHULJKWKDQGVLGH $OOOLDELOLWLHVRIWKHVXSSOLHUDUHLQYDOLGDWHGLQWKH
7KH(:ZRUNVRQVWDQGDUGDOWHUQDWLQJFXUUHQWDQG IROORZLQJFDVHV
HLWKHUDPDLQVFRQQHFWLRQRUDJHQHUDWRUFDQEHXVHG
*HQHUDWRUVPXVWKDYHDUDWHGRXWSXWRIDWOHDVWN:DQG 7KH(:LVXVHGRXWVLGHWKHLQGLFDWHGDSSOLFDWLRQDUHD
SRZHULQSXWPXVWEHEHWZHHQDQGYROWVDWWR
1RQ833ÀWWLQJVRUSLSHDUHXVHG
+]
7KHRSHUDWRUKDVQRWEHHQWUDLQHGWRXVHWKH(:RU
7KH(:KDVDQRQRIIEXWWRQDZHOGVWDUWEXWWRQDQGDQ
WKH833V\VWHP
/('GLVSOD\VKRZLQJWKHZHOGSURJUHVV7KH/('VFDQDOVR
VKRZDQ\IDXOWFRQGLWLRQVWKDWPD\DIIHFWWKHZHOG 2SHUDWLQJLQVWUXFWLRQVKDYHQRWEHHQREVHUYHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8QDXWKRULVHGUHSDLUVRUPDLQWHQDQFHKDYHEHHQFDUULHG
RXW
7KH(:KDVEHHQXVHGRXWVLGHRILWVWHFKQLFDO
VSHFLÀFDWLRQ
6DIHW\LQVWUXFWLRQVKDYHQRWEHHQREVHUYHG $
8VLQJWKH(:9
(QVXUHWKDWWKHPDFKLQHLVSRVLWLRQHGRXWVLGHKD]DUGRXV
]RQHVDQG
$OORZWKHPDFKLQHDQGÀWWLQJVWRUHDFKWKHDPELHQW
WHPSHUDWXUHRIWKHVLWH
.HHSWKHPDFKLQHRXWRIGLUHFWVXQOLJKWDQGIUHHRIDQ\
REVWUXFWLRQ
0DNHVXUHÀWWLQJVDQGSLSHKDYHEHHQSUHSDUHGLQ
DFFRUGDQFHZLWK833,QVWDOODWLRQLQVWUXFWLRQV
%
6WHS $FWLRQ ,QIRUPDWLRQRQ'LVSOD\
&RQQHFWWKH(::HOGHU
1RQH
WRDYSRZHUVXSSO\
&RQQHFWWKHUHTXLUHGZHOG
LQJOHDGWRWKH(::HOGHU 7KH833ÀWWLQJVDUHFRQQHFWHGWRWKH(:LQVHULHV
35,0$5<ÀWWLQJV 5(' XVLQJWKHEULGJLQJOHDGVSURYLGHGVHHSKRWRV$ %
1RQH
25$1*(OHDG
6(&21'$5<ÀWWLQJV <RXFDQHQVXUHWKDW\RXKDYHFRQQHFWHGWKHÀWWLQJV
*5((1OHDG FRUUHFWO\DQGWKDWWKHZHOGVDUHVXFFHVVIXOE\FKHFNLQJ
WKDWDOORIWKHFRQQHFWHGÀWWLQJVJHWZDUPDQGWKDW
$OO/('VOLJKWLQ DOORIWKHLQGLFDWRUSLQVDUHH[SRVHGDWWKHHQGRIWKH
VHTXHQFHWKHQJUHHQ ZHOGLQJWLPH
6ZLWFK21
3RZHU/('UHPDLQV ,WLVQRWSRVVLEOHWRGRPXOWLSOHZHOGVRQ
RQ 6HFRQGDU\ÀWWLQJV7KHVHFDQEHLGHQWLÀHGE\WKHLU
&RQQHFWZHOGLQJOHDGWRWKH VPDOOHUWHUPLQDOSLQVDQGUHTXLUHWKHXVHRIWKHJUHHQ
833IXVLRQÀWWLQJVPDNLQJ ZHOGLQJFDEOHV
3RZHU/('RQ 2WKHU8VHIXO7LSV
VXUHFRQQHFWRUVDUHÀUPO\
SXVKHGRQWRSLQV
6ZLWFKRIIWKHPDFKLQHGXULQJEUHDNVDQGDWWKHHQGRI
)LUVWZHOGOLJKWFRPHV WKHMRE
RQWKHQVXFFHVVLYH
3UHVVRUDQJH67$57
/('VOLJKWXSXQWLO 7KHZHOGF\FOHFDQEHVWRSSHGDWDQ\WLPHE\SUHVVLQJ
EXWWRQXQWLOÀUVWZHOGOLJKW
JUHHQ/('LV WKH67$576723EXWWRQ7KLVZLOOJHQHUDWHDQHUURU
LOOXPLQDWHV
OLWVKRZLQJZHOGLV FRGHDQG\RXPXVWZDLWIRUWKHÀWWLQJWRFRROEHIRUH
FRPSOHWH DWWHPSWLQJWRFRQWLQXH
'LVFRQQHFWZHOGLQJOHDG /('DQG3RZHU
,I\RXKDYHDQ\GRXEWDERXWDZHOGHGMRLQW833
IURPÀWWLQJ /('UHPDLQVRQ
ÀWWLQJVFDQEHZHOGHGDJDLQSURYLGHGWKH\DUHOHIWWR
$OO/('VOLJKWLQ FRRODWDPELHQWWHPSHUDWXUHIRUDPLQLPXPRIRQH
5HVHWIRUQH[WZHOGE\
VHTXHQFHWKHQJUHHQ KRXU
KROGLQJ67$57EXWWRQIRU
SRZHU/('UHPDLQV
VHFRQGV
RQ
1(9(55(:(/'$),77,1*7+$7,667,//:$50
6HULRXVÀUHGDPDJHFDQRFFXUDQGKRWPDWHULDO
0XOWLSOH:HOGV PD\EHHMHFWHGIURPWKHZHOG]RQHFUHDWLQJD
EXUQLQJKD]DUG$GGLWLRQDOO\SRZHUFRQGXFWLQJ
,Q3ULPDU\PRGHWKH(:FDQVLPXOWDQHRXVO\ZHOGXSWR HOHPHQWVPD\EHFRPHH[SRVHGFUHDWLQJDQ
WKUHH833ÀWWLQJVSURYLGHGWKDW HOHFWULFDOVKRFNKD]DUG
7KHVXPRIWKHUHVLVWDQFHYDOXHVFLUFOHGQXPEHURQ833
ÀWWLQJVGRHVQRWH[FHHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)DXOW,QGLFDWRUV
:KHQDQHUURUKDVRFFXUUHGGXULQJWKHZHOGF\FOHWKDWZLOOKDYHDQHIIHFWRQWKH
VXFFHVVRIWKHMRLQWWKHUHGZDUQLQJ/('RQWKHULJKWVLGHRIWKHGLVSOD\ZLOOOLJKW
XS$OVRRQHRIWKH´ZHOGSURJUHVVµOLJKWVZLOOOLJKWXSDWWKHVDPHWLPHWRVKRZ
ZKDWW\SHRIIDXOWKDVRFFXUUHG
(UURU
)DXOW,QGLFDWHG 0HDQLQJ 6ROXWLRQ
/HG
&KHFNDQGUHFWLI\SRZHUVXSSO\
3RZHUVXSSO\ &KHFNSOXJFRQQHFWLRQ
7KHSRZHUVXSSO\ZDVRIIDW
IDLOXUHGXULQJ 5HZHOGÀWWLQJRQO\DIWHULW
VRPHWLPHGXULQJWKHZHOG
ZHOG LVDOORZHGWRFRRODWDPELHQW
WHPSHUDWXUHIRUPLQXWHV
6WRSEXWWRQ 5HZHOGÀWWLQJRQO\DIWHULW
SUHVVHGGXULQJ LVDOORZHGWRFRRODWDPELHQW
ZHOG WHPSHUDWXUHIRUPLQXWHV
,QSXWVXSSO\ &KHFNDQGUHFWLI\JHQHUDWRU
6XSSO\IUHTXHQF\QRWEHWZHHQ
IUHTXHQF\RXWRI RXWSXW
DQG+]
UDQJH &KHFNPDLQVVXSSO\
$OORZ(:DQGÀWWLQJWRFRROLQ
$PELHQW
7HPSHUDWXUHRIWKH(:LV WKHVKDGH
WHPSHUDWXUHRXW
QRWEHWZHHQFDQGF :DLWIRUDPELHQWWHPSHUDWXUHWR
RIUDQJH
UHWXUQWRUDQJH
/RRVHFRQQHFWLRQWRWHUPLQDO
0DNHVXUHFRQQHFWRUVDUHSXVKHG
SLQ
ÀUPO\RQWRWHUPLQDOSLQV
1RRXWSXW /RRVHFRQWDFWLQWKHZHOGLQJ
&KHFNZHOGLQJFDEOHFRQQHFWLRQ
FXUUHQWRSHQ FLUFXLW
DQGFRQWLQXLW\
FLUFXLW )DXOW\ÀWWLQJ
5HSODFHÀWWLQJ
6WDUWEXWWRQQRWGHSUHVVHG
6HHRSHUDWLQJVHTXHQFHVWHS
IRUORQJHQRXJK
5HVLVWDQFHYDOXHRIÀWWLQJLV 8VHRQO\833HOHFWURIXVLRQ
WRRKLJK ÀWWLQJVDQGFRUUHFWZHOGLQJFDEOH
/RZRXWSXW
7RRPDQ\ÀWWLQJVFRQQHFWHG &KHFNUHVLVWDQFHFRGHVRQÀWWLQJV
FXUUHQW
LQVHULHV3ULPDU\PRGHRQO\ GRQRWH[FHHGDVXPWRWDORI
,QSXWYROWDJHWRRORZ &KHFNVXSSO\YROWDJH
6ZLWFKRIIPDFKLQHDQGVZLWFKRQ
+LJKRXWSXW 5HJXODWLRQHUURULQ
DJDLQDIWHUVHFRQGV,ISUREOHP
FXUUHQW HOHFWURQLFV
SHUVLVWVUHWXUQ(:WRVXSSOLHU
7KH(:FDQEHUHVHWDIWHUDIDXOWKDVEHHQUHFWLÀHGE\SUHVVLQJDQGKROGLQJWKH
6WDUW6WRSEXWWRQIRUVHFRQGV
7HFKQLFDO'HWDLOV
8336WRFN&RGH1XPEHU (:9
2SHUDWLQJ9ROWDJH Y
2SHUDWLQJ)UHTXHQF\ WR+]
3RZHU5DWLQJ Y$
3URWHFWLRQ&ODVV ,3
2SHUDWLQJ7HPSHUDWXUH &WR&
6KLSSLQJ'LPHQVLRQV PPZLGH[PPGHHS[PPKLJK
6KLSSLQJ:HLJKW NJ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
()+$1'+(/':(/'(523(5$7,1*0$18$/
:$51,1*833:(/',1*81,760867127%(23(5$7(',1=21($5($6
7RZHOGLQVLGH]RQHWKHXQLWVPXVWEHRSHUDWHGLQ]RQHZLWKRQO\WKHZHOGLQJFDEOHVH[WHQGLQJLQWR]RQH
127(()ZHOGLQJFDEOHVXVHVSHFLDOSLQFRQQHFWRUV
127UHJXODUSLQFRQQHFWRUV
&RQVWUXFWLRQRIWKHZHOGLQJPDFKLQH
SLQ3ULPDU\
ZHOGLQJFDEOH :HOGSURJUHVV/('·V
67$576723EXWWRQ
3RZHUFDEOH
7HPSHUDWXUHVHQVRU
3LQ)XVLRQFKDPEHUZHOGLQJFDEOH
$SSOLFDWLRQ 0DLQ)HDWXUHV
7KH()LVGHVLJQHGWRDXWRPDWLFDOO\ZHOG8333ULPDU\ 833HOHFWURIXVLRQÀWWLQJVDUHZHOGHGXVLQJDFRQVWDQW
DQG6HFRQGDU\&RQWDLQPHQWHOHFWURIXVLRQÀWWLQJV FXUUHQW7KH()DXWRPDWLFDOO\UHFRJQLVHVWKHÀWWLQJ
(OHFWURIXVLRQ&KDPEHUVDQG/DUJHGLDPHWHUDPS ZKHQFRQQHFWHGDQGDSSOLHVWKHFRUUHFWDPRXQWRI
ÀWWLQJV7KLVLVDFKLHYHGE\XVLQJFRORXUFRGHGZHOGLQJ HQHUJ\IRUDVXFFHVVIXOZHOG
OHDGVDVVKRZQEHORZ 7KH()WDNHVWKHDPELHQWWHPSHUDWXUHLQWRDFFRXQW
ZKHQFDOFXODWLQJWKHHQHUJ\UHTXLUHGWRZHOGFRUUHFWO\,W
7\SH :HOGLQJ 6L]HRI :HOG7LPH PXVWWKHUHIRUHEHDOORZHGWRUHDFKDPELHQWWHPSHUDWXUH
&XUUHQW
RI &DEOH :HOGLQJ #& EHIRUHXVHDQGPXVWEHDWWKHVDPHWHPSHUDWXUHDVWKH
DPSV
)LWWLQJ &RORXU 3LPPP 6HFRQGV ÀWWLQJWREHZHOGHG7KHWHPSHUDWXUHVHQVRULVORFDWHG
DGMDFHQWWRWKHSRZHUFDEOHHQWU\JODQG
3ULPDU\ 5HG 7KH()ZRUNVRQVWDQGDUGDOWHUQDWLQJFXUUHQWDQG
HLWKHUDPDLQVFRQQHFWLRQRUDJHQHUDWRUFDQEHXVHG
*HQHUDWRUVPXVWKDYHDUDWHGRXWSXWRIDWOHDVWN:
6HFRQGDU\ *UHHQ DQGSRZHULQSXWPXVWEHEHWZHHQDQGYROWVDW
WR+]
7KH()KDVDQRQRIIEXWWRQDZHOGVWDUWEXWWRQDQGDQ
)XVLRQ /('GLVSOD\VKRZLQJWKHZHOGSURJUHVV7KH/('VFDQ
:KLWH
&KDPEHU DOVRVKRZDQ\IDXOWFRQGLWLRQVWKDWPD\DIIHFWWKHZHOG
/DUJH
'LDPHWHU %ODFN
DPS
7KH()FDQEHXVHGLQDPELHQWWHPSHUDWXUHVEHWZHHQ
&DQG&2QO\SHUVRQQHOIXOO\WUDLQHGDQG
FHUWLÀHGLQWKHXVHDQGLQVWDOODWLRQRIWKH833V\VWHP
VKRXOGXVHWKLVHTXLSPHQW
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6DIHW\ /LDELOLW\5HVWULFWLRQV
7KH()LVGHVLJQHGIRUXVDJHRQFRQVWUXFWLRQVLWHV $OOOLDELOLWLHVRIWKHVXSSOLHUDUHLQYDOLGDWHGLQWKH
DQGPHHWVDSSOLFDEOH(XURSHDQDQG,QWHUQDWLRQDOVDIHW\ IROORZLQJFDVHV
VWDQGDUGV7KHPDFKLQHVKRXOGEHKDQGOHGZLWKWKH
FDUHXVXDOO\JLYHQWRHOHFWULFDOHTXLSPHQWHVSHFLDOO\
7KH()LVXVHGRXWVLGHWKHLQGLFDWHGDSSOLFDWLRQDUHD
GXULQJWUDQVSRUW
1RQ833ÀWWLQJVRUSLSHDUHXVHG
7KHPDFKLQHPXVWRQO\EHXVHGRXWVLGHRIKD]DUGRXV
DUHDV]RQHVDQG 7KHRSHUDWRUKDVQRWEHHQWUDLQHGWRXVHWKH()RU
WKH833V\VWHP
(DFKWLPHLWLVXVHGFKHFNWKHFRQGLWLRQRIWKH
PDFKLQHSDUWLFXODUO\WKHPDLQVSRZHUFDEOH,IDQ\ 2SHUDWLQJLQVWUXFWLRQVKDYHQRWEHHQREVHUYHG
GDPDJHLVGLVFRYHUHGFRQWDFWWKHVXSSOLHULPPHGLDWHO\ 8QDXWKRULVHGUHSDLUVPDLQWHQDQFHRUPRGLÀFDWLRQV
DQGGRQRWXVHWKHPDFKLQH KDYHEHHQFDUULHGRXW
&KHFNWKHVWDWHRIWKHZHOGLQJFDEOHVEHIRUHXVH 7KH()KDVEHHQXVHGRXWVLGHRILWVWHFKQLFDO
DQGUHSODFHWKHPLIWKHUHLVDQ\GRXEWDERXWWKHLU VSHFLÀFDWLRQ
FRQGLWLRQ 6DIHW\LQVWUXFWLRQVKDYHQRWEHHQREVHUYHG
$OZD\VFKHFNWKDWWKHSRZHUVRXUFHLVZLWKLQWKH ,PSURSHURULQDGHTXDWHPDLQWHQDQFH
SDUDPHWHUVVKRZQDERYHEHIRUHXVLQJWKH() 0LVXVHRUDQ\XVHQRWLQDFFRUGDQFHZLWKWKH
1HYHUOLIWRUSXOOWKHPDFKLQHE\LWVSRZHUFDEOHRU RSHUDWLQJPDQXDORUJRRGLQGXVWU\SUDFWLFH
WKHZHOGLQJFDEOHV1HYHUGLVFRQQHFWZHOGLQJFDEOHV 3K\VLFDODEXVHRIWKHSURGXFW
E\SXOOLQJWKHFDEOHDOZD\VSXOORIIWKHFRQQHFWRUV
,PSURSHUVLWHSUHSDUDWLRQRUVLWHPDLQWHQDQFH
8VLQJWKH()
(QVXUHWKDWWKHPDFKLQHLVSRVLWLRQHGRXWVLGHKD]DUGRXV]RQHV$7(;DQG
$OORZWKHPDFKLQHDQGÀWWLQJVWRUHDFKWKHDPELHQWWHPSHUDWXUHRIWKHVLWH
.HHSWKHPDFKLQHRXWRIGLUHFWVXQOLJKWDQGIUHHRIDQ\REVWUXFWLRQ
0DNHVXUHÀWWLQJVDQGSLSHKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK833,QVWDOODWLRQLQVWUXFWLRQV
&RQQHFWWKHUHTXLUHGZHOGLQJOHDGWRWKH():HOGHU
35,0$5<ÀWWLQJV 5('25$1*(FDEOH
6(&21'$5<ÀWWLQJV *5((1FDEOH 1RQH
)86,21&+$0%(5 :+,7(FDEOH
$03ÀWWLQJV %/$&.FDEOH
&RQQHFWZHOGLQJOHDGWRWKH833IXVLRQÀWWLQJV
1RQH
PDNLQJVXUHFRQQHFWRUVDUHÀUPO\SXVKHGRQWRSLQV
&RQQHFWWKH():HOGHU
1RQH
WRVXLWDEOH9SRZHUVXSSO\
$OO/('VOLJKWLQVHTXHQFH
6ZLWFK21
WKHQJUHHQ3RZHU/('UHPDLQVRQ
)LUVWZHOGOLJKWFRPHVRQWKHQVXFFHVVLYH/('V
3UHVVDQGKROGRUDQJH67$57EXWWRQ
OLJKWXSXQWLOJUHHQ/('LVOLWVKRZLQJZHOGLV
XQWLOÀUVWZHOGOLJKWLOOXPLQDWHV
FRPSOHWH
'LVFRQQHFWZHOGLQJOHDGIURPÀWWLQJ /('DQG3RZHU/('UHPDLQVRQ
$/:$<65HVHWIRUQH[WZHOG $OO/('VOLJKWLQVHTXHQFH
E\KROGLQJ67$57EXWWRQIRUVHFRQGV WKHQJUHHQSRZHU/('UHPDLQVRQ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
0XOWLSOH:HOGV
,Q3ULPDU\PRGHWKH()FDQVLPXOWDQHRXVO\ZHOGXSWR
WKUHH833ÀWWLQJVSURYLGHGWKDW
7KHVXPRIWKHUHVLVWDQFHYDOXHVFLUFOHGQXPEHURQ833
ÀWWLQJVGRHVQRWH[FHHG
7KH833ÀWWLQJVDUHFRQQHFWHGWRWKH()LQVHULHVXVLQJ
WKHEULGJLQJOHDGVSURYLGHGVHHSKRWRV$ %
$
<RXFDQHQVXUHWKDW\RXKDYHFRQQHFWHGWKHÀWWLQJV
FRUUHFWO\DQGWKDWWKHZHOGVDUHVXFFHVVIXOE\FKHFNLQJ
WKDWDOORIWKHFRQQHFWHGÀWWLQJVJHWZDUPDQGWKDWDOORI
WKHLQGLFDWRUSLQVDUHH[SRVHGDWWKHHQGRIWKHZHOGLQJ
WLPH
,WLVVRPHWLPHVSRVVLEOHWRGRPXOWLSOHZHOGVRQ
6HFRQGDU\ÀWWLQJV7KHVHFDQEHLGHQWLÀHGE\WKHLU
VPDOOHUWHUPLQDOSLQVDQGUHTXLUHWKHXVHRIWKHJUHHQ
ZHOGLQJFDEOHV7HFKQLFDO%XOOHWLQ7%JLYHVGHWDLOVRI
%
6HFRQGDU\)LWWLQJVWKDWFDQKDYHPXOWLSOHZHOGV
2WKHU8VHIXO7LSV
6ZLWFKRIIWKHPDFKLQHGXULQJEUHDNVDQGDWWKHHQGRIWKH
MRE
7KHZHOGF\FOHFDQEHVWRSSHGDWDQ\WLPHE\SUHVVLQJWKH
67$576723EXWWRQ7KLVZLOOJHQHUDWHDQHUURUFRGHDQG
\RXPXVWZDLWIRUWKHÀWWLQJWRFRROEHIRUHDWWHPSWLQJWR
FRQWLQXH
,I\RXKDYHDQ\GRXEWDERXWDZHOGHGMRLQW833ÀWWLQJVFDQ
EHZHOGHGDJDLQSURYLGHGWKH\DUHOHIWWRFRRODWDPELHQW
WHPSHUDWXUHIRUDPLQLPXPRIRQHKRXU
1(9(55(:(/'$),77,1*7+$7,667,//:$50
6HULRXVÀUHGDPDJHFDQRFFXUDQGKRWPDWHULDOPD\
EHHMHFWHGIURPWKHZHOG]RQHFUHDWLQJDEXUQLQJ
KD]DUG$GGLWLRQDOO\SRZHUFRQGXFWLQJHOHPHQWVPD\
EHFRPHH[SRVHGFUHDWLQJDQHOHFWULFDOVKRFNKD]DUG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)DXOW,QGLFDWRUV
:KHQDQHUURUKDVRFFXUUHGGXULQJWKHZHOGF\FOHWKDWZLOOKDYHDQHIIHFWRQWKH
VXFFHVVRIWKHMRLQWWKHUHGZDUQLQJ/('RQWKHULJKWVLGHRIWKHGLVSOD\ZLOOOLJKW
XS$OVRRQHRIWKH´ZHOGSURJUHVVµOLJKWVZLOOOLJKWXSDWWKHVDPHWLPHWRVKRZ
ZKDWW\SHRIIDXOWKDVRFFXUUHG
(UURU )DXOW
0HDQLQJ 6ROXWLRQ
/HG ,QGLFDWHG
&KHFNDQGUHFWLI\SRZHUVXSSO\
3RZHU
7KHSRZHUVXSSO\ZDVRII &KHFNSOXJFRQQHFWLRQ
VXSSO\
DWVRPHWLPHGXULQJWKH &KHFNFDEOHVDUHQRWGDPDJHGRUEURNHQ
IDLOXUH
ZHOG 5HZHOGÀWWLQJRQO\DIWHULWLVDOORZHGWRFRROWRDPELHQW
GXULQJZHOG
WHPSHUDWXUH
6WRSEXWWRQ
5HZHOGÀWWLQJRQO\DIWHULWLVDOORZHGWRFRROWRDPELHQW
SUHVVHG
WHPSHUDWXUH
GXULQJZHOG
6XSSO\IUHTXHQF\QRW
3RZHU &KHFNDQGUHFWLI\JHQHUDWRURXWSXW
EHWZHHQDQG+]RU
VXSSO\ &KHFNPDLQVVXSSO\
9ROWDJHQRWEHWZHHQ
RXWRIOLPLWV 0DNHVXUHVXSSO\LVWRUHTXLUHGVSHFLÀFDWLRQ
9
$PELHQW 7HPSHUDWXUHRIWKH()
$OORZ()DQGÀWWLQJWRFRROLQWKHVKDGH
WHPSHUDWXUH LVQRWEHWZHHQFDQG
:DLWIRUDPELHQWWHPSHUDWXUHWRUHWXUQWRUDQJH
RXWRIUDQJH F
/RRVHFRQQHFWLRQWR
WHUPLQDOSLQ 0DNHVXUHFRQQHFWRUVDUHSXVKHGÀUPO\RQWRWHUPLQDO
1RRXWSXW
/RRVHFRQWDFWLQWKH SLQV
FXUUHQW
ZHOGLQJFLUFXLW &KHFNZHOGLQJFDEOHFRQQHFWLRQDQGFRQWLQXLW\
RSHQ
)DXOW\ÀWWLQJ 5HSODFHÀWWLQJ
FLUFXLW
6WDUWEXWWRQQRWGHSUHVVHG 6HHRSHUDWLQJVHTXHQFHVWHS
IRUORQJHQRXJK
5HVLVWDQFHYDOXHRIÀWWLQJLV 8VHRQO\833HOHFWURIXVLRQÀWWLQJVDQGFRUUHFWZHOGLQJ
WRRKLJK FDEOH
/RZRXWSXW 7RRPDQ\ÀWWLQJVFRQQHFWHG &KHFNUHVLVWDQFHFRGHVRQÀWWLQJVGRQRWH[FHHGDVXP
FXUUHQW LQVHULHV3ULPDU\PRGH WRWDORI
RQO\ &KHFNVXSSO\YROWDJH
,QSXWYROWDJHWRRORZ &KHFNH[WHQVLRQOHDGVEHLQJXVHGDUHWRVSHFLÀFDWLRQ
6ZLWFKRIIPDFKLQHDQGVZLWFKRQDJDLQDIWHUVHFRQGV
+LJKRXWSXW 5HJXODWLRQHUURULQ
(QVXUHZHOGHULVZLWKLQWHPSHUDWXUHUDQJH
FXUUHQW HOHFWURQLFV
,ISUREOHPSHUVLVWVUHWXUQ()WRVXSSOLHU
7KH()FDQEHUHVHWDIWHUDIDXOWKDVEHHQUHFWLÀHGE\SUHVVLQJDQGKROGLQJWKH
67$576723EXWWRQIRUVHFRQGV
7HFKQLFDO'HWDLOV
8336WRFN&RGH1XPEHU ()9
6XSSO\&XUUHQW $DFPD[LPXP
6XSSO\3RZHU :
6XSSO\3URWHFWLRQ &ODVV(DUWKHG
2SHUDWLQJ)UHTXHQF\ WR+]
:HOGLQJ3RZHU5DWLQJ 9$
3URWHFWLRQ&ODVV ,3
2SHUDWLQJ7HPSHUDWXUH &WR&
6KLSSLQJ'LPHQVLRQV PPZLGH[PPGHHS[PPKLJK
6KLSSLQJ:HLJKW NJ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
7,*+71(667(67,1*
(YHU\FRPSOHWHG833V\VWHPVLQVWDOODWLRQPXVWEHWLJKWQHVVWHVWHGE\D
FRPSHWHQWSHUVRQWRYHULI\WKHLQWHJULW\RIWKHOLQHVSULRUWREDFNÀOOLQJ
7HVWLQJFDQEHGRQHE\K\GURVWDWLFSUHVVXUHRUDFRPELQDWLRQRISQHXPDWLF
SUHVVXUHDQGYDFXXP
7LJKWQHVVWHVWLQJXVLQJD+\GURVWDWLF0HWKRGLVVHHQDVEHLQJVDIHUWKDQ
3QHXPDWLF0HWKRGVDQGHLWKHUPHWKRG+\GURVWDWLF0HWKRGRU833
3QHXPDWLF0HWKRGLVDFFHSWDEOHIRUWHVWLQJ833SLSHZRUNV\VWHPV
*XLGHOLQHVIRUWKHVHWHVWVDUHVHWRXWEHORZEXWWKHVHSURFHGXUHVPD\QHHGWR
EHYDOLGDWHGDQGDPHQGHGWRPHHWWKHUHTXLUHPHQWVRIWKHORFDORIÀFLDOVDQG
HQJLQHHUVDQGWRFRPSO\ZLWKORFDOKHDOWKDQGVDIHW\UHJXODWLRQV
7HVWLQJ*XLGHOLQHV
,WLVUHFRPPHQGHGIRUDFFXUDF\RIREVHUYDWLRQWKDWWKHWHVWJDXJHVFDOLQJLVVXFK
WKDWWKHWDUJHWWHVWSUHVVXUHLVDSSUR[LPDWHO\RIWKHJDXJHVPD[LPXPUDQJH
HJWHVWSUHVVXUH EDUSVLJ²JDXJHUDQJHLVWREDUWRSVLJ
7KHÀWWLQJVZKLFKDUHXVHGWRLQWURGXFHDLURUDQLQHUWJDVLQWRWKHSLSHVPXVW
LQFRUSRUDWHDVKXWRIIYDOYHEHWZHHQWKHSLSHDQGWKHSUHVVXUHJDXJHDQGDVKXW
RIIYDOYHEHWZHHQWKHSUHVVXUHVXSSO\DQGWKHJDXJH
7RHQVXUHWKDWH[FHVVSUHVVXUHFDQQRWEHDSSOLHGWRDSLSHXQGHUWHVWDUHOLHI
YDOYHPXVWDOVREHLQFRUSRUDWHGLQWKHV\VWHP7KHUHOLHIYDOYHVKRXOGEHVHW
VRWKDWDWSRVVLEOHIXOOÁRZIURPWKHSUHVVXUHVXSSO\WKHSUHVVXUHLQWKHSLSH
FDQQRWH[FHHGEDUSVLJDERYHWHVWSUHVVXUH
HJWHVWSUHVVXUHRIEDUSVLJ²UHOLHIYDOYHVHWWREDUSVLJ
:KHQDLURULQHUWJDVLVWREHDSSOLHGIURPKLJKSUHVVXUHF\OLQGHUVDVXLWDEOH
FRQWUROYDOYHPXVWEHXVHGWRFRQWUROWKHÁRZIURPWKHF\OLQGHU7KHRXWOHW
SUHVVXUHIURPWKHF\OLQGHUPXVWEHVHWWRHQVXUHWKDWLWGRHVQRWH[FHHGWKH
UHTXLUHGDSSURYHGWHVWSUHVVXUHZKLOVWSUHVVXUHLVEHLQJDSSOLHGWRWKHSLSH
:KHQFRQGXFWLQJWKHSUHVVXUHYDFXXPWHVWRQWKHSULPDU\SLSHZRUNDQ\
VHFRQGDU\FRQWDLQPHQWPXVWEHRSHQWRDWPRVSKHUH7KHUHYHUVHLVWUXHZKHQ
FRQGXFWLQJWKHSUHVVXUHYDFXXPWHVWRQDQ\VHFRQGDU\FRQWDLQPHQWWKHSULPDU\
PXVWEHRSHQWRDWPRVSKHUH
7KHOLQHXQGHUWHVWVKRXOGEHVORZO\SUHVVXUL]HGRUGHSUHVVXUL]HGIRUYDFXXP
WRPLQLPL]HDQ\ULVNV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
&DXWLRQ
1LWURJHQIURPDSUHVVXUHF\OLQGHUVKDOOEHXVHGLQOLHXRIDLUIRUWHVWLQJ
LIDIXHOKDVEHHQXVHGWREDOODVWDQXQGHUJURXQGVWRUDJHWDQN
7LJKWQHVVWHVWLQJRQRSHUDWLRQDOVLWHV
6SHFLDO SUHFDXWLRQV PXVW EH WDNHQ ZKHQ WHVWLQJ RQ RSHUDWLRQDO SLSHZRUN RU
SLSHZRUN FRQQHFWHG WR DQ\ WDQN RU SLSHZRUN WKDW KDV SUHYLRXVO\ FRQWDLQHG
SHWUROHXP WR DYRLG WKH SRVVLELOLW\ RI H[SORVLRQ KD]DUGV IURP YDSRXU RU DLU
PL[WXUHV
$QLQHUWJDVQRUPDOO\QLWURJHQPXVWEHXVHGIRUSUHVVXULVDWLRQLQVWHDGRIDLU
$Q\ZDWHUXVHGPXVWEHGLVSRVHGRIHLWKHUWKURXJKWKHRLOZDWHUVHSDUDWRURUE\
DVSHFLDOLVWFRQWUDFWRUDVFRQWDPLQDWHGZDVWH
,QDOORWKHUDVSHFWVWKHSUHVVXUHWHVWLQJUHTXLUHPHQWVDUHDVGHWDLOHGDERYH
+<'5267$7,&0(7+2'
(TXLSPHQWQHHGHG
3XPSUDWHGIRUPRUHWKDQEDUSVLJ
+\GURIRU
7ZRSUHVVXUHJDXJHVUDWHGIRUEDUSVLJPLQUHDGLQJEDUSVLJ
&KHFNYDOYH
%DOOYDOYH
3UHVVXUHUHOLHIYDOYHUDWHGIRUEDUSVLJVHWDWEDUSVLJ
&RQGLWLRQLQJ3KDVH
)LOOWKHSLSHZRUNV\VWHPWREHWHVWHGZLWKZDWHUPDNLQJVXUHWKDWDQ\DLUUHOLHI
YDOYHVDUHRSHQHGZKLOHÀOOLQJWKHSLSHZRUN
$IWHUÀOOLQJWKHSLSHZRUNZDLWKRXUIRUWKHWHPSHUDWXUHWRVWDELOL]H
7HVWLQJ3KDVH
'XULQJWKHWHVWSHULRGRIPLQXWHVWKHSUHVVXUHVKRXOGEHUHFRUGHGZLWKWKH
IUHTXHQF\VKRZQEHORZ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
,IWKHV\VWHPIDLOVWKHSUHVVXUHWHVWPDNHWKHIROORZLQJFKHFNV
D &KHFNDOOPHFKDQLFDOFRQQHFWLRQV
E &KHFNZHOGHGMRLQWV
:KHQWKHIDLOXUHSRLQWKDVEHHQORFDWHGDQGUHPHGLHGUHSHDWWKHIXOO
FRQGLWLRQLQJDQGWHVWLQJVHTXHQFH
83331(80$7,&0(7+2'
7KHWHVWSDUDPHWHUVDUHJLYHQEHORZ
6HFRQGDU\3LSH
WHUPLQDWHGZLWK EDUSVLN3D KRXU EDUSVLN3D PLQXWHV
HOHFWURIXVLRQERRW
6HFRQGDU\3LSH
WHUPLQDWHGZLWK EDUSVLN3D KRXU PEDUSVLN3D PLQXWHV
ÁH[LEOHERRW
6DIHW\QRWHV
([WUHPHFDUHPXVWEHWDNHQZKHQWHVWLQJZLWKSUHVVXULVHGJDVDVKLJKOHYHOVRI
FRPSUHVVLRQHQHUJ\DUHJHQHUDWHGLQWKHSLSHZRUNV\VWHP
*HQHUDOQRWHV
3UHVVXUHJDXJHZLWKWHVWSUHVVXUHDWPLGVFDOHLVUHFRPPHQGHG
3ULRUWRFRPPHQFLQJDQ\SUHVVXUHWHVWDOZD\VUHFRUGWKHDPELHQWWHPSHUDWXUH
DWWKHEHJLQQLQJDQGDWWKHHQGRIWHVWLQJDVWHPSHUDWXUHYDULDWLRQVZLOODIIHFW
JDVSUHVVXUHLQVLGHWKHSLSH
3UHVVXULVHWKHSLSHV\VWHPWRWKHVSHFLÀHGWHVWSUHVVXUHDQGDOORZ
PLQXWHVIRUWKHWHPSHUDWXUHZLWKLQWKHSLSHV\VWHPWRHTXDOL]HZLWKDPELHQW
WHPSHUDWXUH5HFRPPHQGHGWHVWLQJPHGLDVDUHFRPSUHVVHGDLUQLWURJHQRU
KHOLXP$LUVKDOOEHDYRLGHGLIWKHUHLVÁDPPDEOHDWPRVSKHUHLQVLGHWKHSLSLQJ
:KHQWHVWLQJSULPDU\SLSHDOZD\VHQVXUHWKDWWKHVHFRQGDU\SLSHLVYHQWHG
RSHQWRDWPRVSKHUH7KLVUHTXLUHPHQWLVFULWLFDOZKHQHYHUWKHVHFRQGDU\
FRQWDLQPHQWSLSHLVÀOOHGZLWKOLTXLG
'XULQJWHVWLQJLWLVSUHIHUDEOHWRZLSHHDFKMRLQWZLWKDVRDS\ZDWHUPL[WXUHWR
FKHFNIRUVLJQVRIOHDNDJHSDUWLFXODUO\LQWKHDUHDZKHUHWKHSULPDU\SLSHH[LWV
IURPWKHVHFRQGDU\FRQWDLQPHQWLIDSSOLFDEOH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
3UHVVXUH9DULDWLRQV
,QLWLWDO 7HPSHUDWXUHYDULDWLRQ¨7)
3UHVVXUH
SVL
8333,3(5$7,1*6
,35DWLQJ
833SULPDU\SLSHVLQJOHZDOO
8QOLQHGPP
EDU3VL
/LQHGPP
EDU3VL
/LQHGPPÀOOSLSH
EDU3VL
µÀOOSLSH
8336HFRQGDU\FRQWDLQPHQWGRXEOHZDOO
7HUPLQDWHGE\IXVLRQÀWWLQJ EDU3VL
7HUPLQDWHGE\ÁH[LEOHERRW EDU3VL
'XFW3LSH EDU3VL
VHH8/LQVWDOODWLRQLQVWUXFWLRQVKHHWIRU8/UDWLQJV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6<67(0,17(*5,7<7(67,1*,16758&7,216
9789 97890RGHOV
7KH8336\VWHP,QWHJULW\7HVWLQJ.LWLVVLPSOHWRXVHDQGDOORZVIRUSUHFLVH
WHVWLQJRIWKHWLJKWQHVVRIXQGHUJURXQGWDQNVXPSDQGFKDPEHUVDQGGLVSHQVHU
VXPSVE\XVLQJDYDFXXP7KHYHUVDWLOHXQLWFDQDOVREHXVHGWRWHVWGRXEOH
ZDOO GLVSHQVHU DQG WDQN VXPSV VSLOO EXFNHWVFRQWDLQHUV DQG WKH LQWHUVWLWLDO
VSDFHLQVHFRQGDU\FRQWDLQHGGRXEOHZDOOSLSHV\VWHPV
7(676803&+$0%(5%$6(
$IWHULQVWDOOLQJWKHWDQNFKDPEHUVHDOVDQGSLSHUXQVWHVWWKHEDVHIRUDLUOHDNV
7RWHVWWKHFKDPEHUIROORZWKHVHLQVWUXFWLRQV
0DNHVXUHWKHYDFXXPOLGJDVNHWVDQGFKDPEHUEDVHÁDQJHDUHFOHDQDQGIUHH
IURPGLUWDQGGHEULV
3ODFH WKH YDFXXP OLG RQ WR WKH FKDPEHU EDVH ZLWK JDVNHW DJDLQVW ÁDQJH DOO
DURXQG
3ODFHXQLWRXWVLGH]RQHEXWDVFORVHWRWKHFKDPEHUDVSRVVLEOHDQGZLWKLQ
PRIHOHFWULFDOSRZHUVRXUFH
&RQQHFWWKHKRVHVEHWZHHQWKHOLGDQGWKHWHVWXQLWFKHFNLQJKRVHHQGVDUH
LQJRRGFRQGLWLRQ
0DNHVXUHRQRIIVZLWFKLVLQ´µSRVLWLRQDQGFRQQHFWWKHOHDGIURPWKHWHVW
XQLWWRWKHSRZHUVXSSO\
0HDVXUHJURXQGZDWHUGHSWK;DVVKRZQLQGLDJUDP6HOHFW´FKDPEHUGHSWK
VHWWLQJµWRFRUUHVSRQGZLWKJURXQGZDWHUGHSWK;DFWLQJRQFKDPEHU
7XUQRQSRZHUXQLWZLOOJRWKURXJKFDOLEUDWLRQSURFHVVZLWKFRORXUHGOLJKWV
ÁDVKLQJ
:KHQ FDOLEUDWLRQ LV FRPSOHWH YDFXXP SXPS ZLOO UXQ XQWLO WKH FRUUHFW WHVW
YDFXXPLVUHDFKHG7KHQSXPSZLOOVWRSDQGWKHEOXHOLJKWZLOOEHRQ
:KHQWKHYDFXXPKDVEHHQKHOGIRUWKHUHTXLUHGWHVWWLPHWKHJUHHQOLJKWZLOO
LOOXPLQDWHDQGWKHFKDPEHUFDQEHFRQVLGHUHGOHDNWLJKW
,IWKHYDFXXPLVQRWKHOGWKHQWKHUHGOLJKWZLOOLOOXPLQDWHDQGWKHFKDPEHU
VKRXOGEHLQYHVWLJDWHGXVLQJDOHDNGHWHFWLRQOLTXLGVSUD\3RVVLEOHOHDNSRLQWV
LQFOXGH
3LSHVHDOLQWHUIDFH HOHFWURIXVLRQFKDPEHULQWHUIDFH
7DQNVXPSFKDPEHUPRXQWLQJÁDQJH &RQGXLWVHDOV
9DFXXPOLGVHDO 9DFXXPWHVWSLSHFRQQHFWLRQV
2QFHWKHFKDPEHUEDVHLVOHDNWLJKWPRYHRQWRFKHFNWKHULVHU
7(676803&+$0%(55,6(5
8QFRXSOHWKHKRVHFRQQHFWLRQIURPWKHYDFXXPOLGDQGUHPRYHWKHYDFXXP
OLGIURPWKHEDVHVHFWLRQ-RLQWKHULVHUWRWKHEDVHVHFWLRQDVGHWDLOHGLQWKH
UHOHYDQWFKDPEHULQVWDOODWLRQLQVWUXFWLRQV
3ODFHQHZYDFXXPOLGRQULVHU
&RQQHFWYDFXXPKRVHVWRULVHUOLG
5HUXQWHVWDVLQWHVW
,IWKHYDFXXPLVQRWKHOGWKHQWKHFKDPEHUVKRXOGEHLQYHVWLJDWHGXVLQJDOHDN
GHWHFWLRQOLTXLGVSUD\3RVVLEOHOHDNSRLQWVLQFOXGH
&HQWUHVHFWLRQVHDO 5LVHUVHDOV
9DFXXPOLGVHDO 9DFXXPWHVWSLSHFRQQHFWLRQV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
7(67$)7(5,167$//$7,21
7HVWFDQEHFDUULHGRXWDWDQ\WLPHGXULQJWKHOLIHWLPHRIWKHVLWHWRHQVXUH
833SURGXFW 6DIHYDFXXPOHYHO
WKHVXPSFKDPEHULVVWLOOOHDNIUHH
3HWUR7HFKQLNVXJJHVWWKHWHVWLVFDUULHGRQDQDQQXDOEDVLV '&6%
'6
)$8/7',$*126,6
'6
'6
)DXOW 6ROXWLRQ
'6
9DFXXPOHYHOQRWUHDFKHGRUNHHSVRQ &KHFNDQGOLVWHQIRUOHDNVLQDOO '6
IDOOLQJ WKHDUHDVRXWOLQHGLQWKHWZRWHVWV
5HFWLI\IDXOWVLIIRXQG
9DFXXPVWLOOIDOOLQJ$OODUHDVRQ &KHFNPDQZD\WDQNÁDQJHDQG
FKDPEHUDUHOHDNWLJKW ÀWWLQJVIRUOHDNSDWK&RQWDFWWDQN
PDQXIDFWXUHULIOHDNLVIRXQGIRU
DOWHUQDWLYHVHDOLQJVROXWLRQV
)DXOWRQWHVWXQLWVHQGWR
3HWUR7HFKQLNIRUUHSDLU
9DFXXPHTXLSPHQWUXQQLQJEXWQR &KHFNFRQQHFWLRQWRYDFXXPOLG
YDFXXPEHLQJSURGXFHG DQGSXPS7RFKHFNSXPSEORFN
RQHHQGRISLSHDQGPRQLWRUWKH
PRYHPHQWRIWKHYDFXXPJDXJH6HQG
WR3HWUR7HFKQLNIRUUHSDLULIDYDFXXP
LVQRWJHQHUDWHG
3XPSQRWUXQQLQJ &KHFNSRZHUWRXQLWDQGHOHFWULFDO
IXVH
9DFWHVWOHYHOVDQGFRUUHVSRQGLQJZDWHUSUHVVXUHV
9DFXXP7HVW/HYHO[ *URXQG:DWHU3UHVVXUH 7HVW7LPH
PP IW PEDU 3VL LQ+J PLQV
'LDJUDP
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6,1*/(:$//35,0$5<&217$,10(17
6LWH1DPH
&RQIRUPDQFH&RQWURODQG9LVXDO,QVSHFWLRQ
1XPEHURIFRPSUHVVLRQMRLQWVLQOLQH 1RWHV
1XPEHURIZHOGHGMRLQWVLQOLQH 1RWHV
:HOGLQJWLPHVPDUNHGRQDOOMRLQWV" 1RWHV
6FUDSLQJPDUNV" 1RWHV
-RLQWVVTXDUH" 1RWHV
:HOGLQJSLQVH[WHQGHG" 1RWHV
3LSHURXWLQJVHSDUDWLRQV" 1RWHV
0LQLPXPIDOOEDFNFRUUHFW" 1RWHV
7LJKWQHVV7HVWLQJRI3ULPDU\&RQWDLQPHQW
35(6685(7(67
3UHVVXUH7HVW EDU
7HVW0HGLXP $LU ,QHUW*DV1LWURJHQ
7HVWWLPH 6WDUW7LPH (QG7LPH 3$66
DWOHDVWKRXU 6WDUWWHPSHUDWXUH& (QG7HPSHUDWXUH& )$,/
3UHVVXUHGURS PEDURYHUWHVWSHULRG
9$&8807(67
7HVW9DFXXP PLOOLEDU
7HVWWLPH 6WDUW7LPH (QG7LPH 3$66
DWOHDVWPLQXWHV 6WDUWWHPSHUDWXUH& (QG7HPSHUDWXUH& )$,/
9DFXXP/RVV PEDURYHUWHVWSHULRG
&HUWLÀFDWLRQ6LJQ2II
7KHDERYHGHVFULEHGSLSHUXQKDVEHHQFKHFNHGIRUFRUUHFWLQVWDOODWLRQYLVXDOO\DQGE\PHDQVRIDQLQWHJULW\WHVW,WKDV
EHHQIRXQGWREHLQVWDOOHGLQDFFRUGDQFHZLWKWKH8336\VWHPVLQVWDOODWLRQJXLGHOLQHVDQGKDVEHHQFHUWLÀHGE\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHLQIRUPDWLRQJLYHQDERYHLVWUXHDQGFRUUHFW
6LJQHGE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBGD\PRQWK\HDU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6LWH1DPH
&RQIRUPDQFH&RQWURODQG9LVXDO,QVSHFWLRQ
1XPEHURIFRPSUHVVLRQMRLQWVLQOLQH 1RWHV
1XPEHURIZHOGHGMRLQWVLQOLQH 1RWHV
:HOGLQJWLPHVPDUNHGRQDOOMRLQWV" 1RWHV
6FUDSLQJPDUNV" 1RWHV
-RLQWVVTXDUH" 1RWHV
:HOGLQJSLQVH[WHQGHG" 1RWHV
3LSHURXWLQJVHSDUDWLRQV" 1RWHV
0LQLPXPIDOOEDFNFRUUHFW" 1RWHV
7LJKWQHVV7HVWLQJRI6HFRQGDU\&RQWDLQPHQW
35(6685(7(67
7HVW3UHVVXUH EDUIRUZHOGHG6&ERRWV PLOLEDUIRUÁH[LEOH6&ERRWV
7HVW0HGLXP $LU ,QHUW*DV1LWURJHQ
7HVWWLPH 6WDUW7LPH (QG7LPH 3$66
DWOHDVWKRXU 6WDUWWHPSHUDWXUH& (QG7HPSHUDWXUH& )$,/
3UHVVXUHGURS PEDURYHUWHVWSHULRG
9$&8807(67
7HVW9DFXXP PLOOLEDUIRUZHOGHG6&ERRWV PLOOLEDUIRUÁH[LEOH6&ERRWV
7HVWWLPH 6WDUW7LPH (QG7LPH 3$66
DWOHDVWPLQXWHV 6WDUWWHPSHUDWXUH& (QG7HPSHUDWXUH& )$,/
9DFXXP/RVV PEDURYHUWHVWSHULRG
&HUWLÀFDWLRQ6LJQ2II
7KHDERYHGHVFULEHGSLSHUXQKDVEHHQFKHFNHGIRUFRUUHFWLQVWDOODWLRQYLVXDOO\DQGE\PHDQVRIDSUHVVXUHWHVW,WKDVEHHQ
IRXQGWREHLQVWDOOHGLQDFFRUGDQFHZLWK8336\VWHPVLQVWDOODWLRQJXLGHOLQHVDQGKDVEHHQFHUWLÀHGE\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHLQIRUPDWLRQJLYHQDERYHLVWUXHDQGFRUUHFW
6LJQHGE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBGD\PRQWK\HDU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
'8&7&217$,10(173,3(7,*+71(667(675(3257
'8&7&217$,10(177(675(3257
6LWH1DPH
3LSHOLQH )URP7DQN1XPEHU
&RQIRUPDQFH&RQWURODQG9LVXDO,QVSHFWLRQ
XPEHURIZHOGHGMRLQWVLQOLQH
1 1RWHV
:HOGLQJWLPHVPDUNHGRQDOOMRLQWV" 1RWHV
6FUDSLQJPDUNV" 1RWHV
-RLQWVVTXDUH" 1RWHV
:HOGLQJSLQVH[WHQGHG" 1RWHV
3LSHURXWLQJVHSDUDWLRQVFRUUHFW" 1RWHV
0LQLPXPIDOOFRUUHFW" 1RWHV
7LJKWQHVV7HVWLQJRI'XFW/LQHV
35(6685(7(67
7HVWSUHVVXUH PLOOLEDU
7HVW0HGLXP $LU ,QHUW*DV1LWURJHQ
7HVWWLPH 6WDUW7LPH (QG7LPH 3$66
DWOHDVWKRXU 6WDUWWHPSHUDWXUH& (QG7HPSHUDWXUH& )$,/
3UHVVXUHGURS PEDURYHUWHVWSHULRG
9$&8807(67
7HVWYDFXXP PLOOLEDU
7HVWWLPH 6WDUW7LPH (QG7LPH 3$66
DWOHDVWPLQXWHV 6WDUWWHPSHUDWXUH& (QG7HPSHUDWXUH& )$,/
9DFXXP/RVV PEDURYHUWHVWSHULRG
&HUWLÀFDWLRQ6LJQ2II
7KHDERYHGHVFULEHGSLSHUXQKDVEHHQFKHFNHGIRUFRUUHFWLQVWDOODWLRQYLVXDOO\DQGE\PHDQVRIDSUHVVXUHWHVW,WKDVEHHQ
IRXQGWREHLQVWDOOHGLQDFFRUGDQFHZLWK8336\VWHPVLQVWDOODWLRQJXLGHOLQHVDQGKDVEHHQFHUWLÀHGE\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHLQIRUPDWLRQJLYHQDERYHLVWUXHDQGFRUUHFW
6LJQHGE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBGD\PRQWK\HDU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
833',63(16(568035(3257
7(672)833',63(16(568035(3257
6LWH1DPH
6XPS,QVWDOOHGXQGHU'LVSHQVHU
9$&8807(676XPSLQWHJULW\WHVW
7KLVWHVWFDQRQO\EHFDUULHGRXWRQYDFWHVWDEOH833VXPSV5HJXODUVXPSVZLWKSHQHWUDWLQJEROWKROHVEHWZHHQWKH
PRXQWLQJIUDPHDQGWKHXQLVWUXWDUHQRWYDFWHVWDEOH)RUWKHVHVXPSVLWLVUHFRPPHQGHGWKDWD+\GURVWDWLFWHVWLV
SHUIRUPHGIROORZLQJWKHWHVWSURFHGXUHVHWRXWDWWKHERWWRPRIWKLVSDJH
2QFHWKHGLVSHQVHUVXPSKDVEHHQSRVLWLRQHGFRUUHFWO\DQFKRUHGLQWRSRVLWLRQDQGDOOSLSHZRUNLVLQVWDOOHGXVLQJ
HOHFWURIXVLRQRUPHFKDQLFDOHQWU\VHDOVDYDFXXPWHVWFDQEHFDUULHGRXWWRHQVXUHWKHLQWHJULW\RIDOOSLSHSHQHWUDWLRQV
7KLVWHVWFDQEHFDUULHGRXWEHIRUHRUDIWHUWKHVKHDUYDOYHVDUHLQVWDOOHGRU,IWKHWHVWLVEHLQJFDUULHGRXWZLWKVKHDUYDOYHV
DOUHDG\LQSRVLWLRQHQVXUHWKDWWKHWRSVRIWKHVKHDUYDOYHVDUHLQOLQHRUEHORZWKHOHYHORIWKHVXPSOLSVRWKDWWKHWHVWOLG
VLWVFRUUHFWO\RQWRSRIWKHVXPS
7(67352&(66
(QVXUHYDFXXPOLGJDVNHWDQGVXPSOLSDUHERWKFOHDQDQGIUHHIURPGLUWRUGHEULV 1RWHV
3URSHUO\SRVLWLRQYDFXXPOLGRQWRSRIWKHVXPS 1RWHV
(QVXUHYDFXXPWHVWNLWXQLWLVSODFHGRXWVLGH]RQH 1RWHV
&KHFNKRVHVWRHQVXUHWKH\DUHLQJRRGFRQGLWLRQDQGFRQQHFWWRWHVWXQLWDQGOLG 1RWHV
(QVXUHXQLWSRZHUVZLWFKLVLQ´µSRVLWLRQDQGFRQQHFWSRZHUOHDGWRSRZHUVXSSO\ 1RWHV
6HOHFWFRUUHFWGHSWKVHWWLQJIRUORFDOJURXQGZDWHUFRQGLWLRQV 1RWHV
7XUQRQXQLWZDLWIRUFDOLEUDWLRQSURFHVVWRHQGÁDVKLQJFRORXUHGOLJKWV 1RWHV
9DFXXPSXPSZLOOUXQXQWLOFRUUHFWWHVWYDFXXPLVUHDFKHGDQGWKHEOXHOLJKWZLOOVKRZ 1RWHV
7(675(68/7
*UHHQOLJKW 3$66 5HGOLJKW )$,/
,IIDLOHGFKHFNIRUOHDNVDURXQGSLSHHQWU\VHDOVXVLQJVRDS\ZDWHURUOHDNGHWHFWLRQVSUD\
5HFWLI\DQ\IDLOXUHVDQGUHSHDWWHVWLQJXQWLOSDVVLVDFKLHYHG
+<'5267$7,&7(676XPSLQWHJULW\WHVW
2QFHWKHGLVSHQVHUVXPSKDVEHHQSRVLWLRQHGFRUUHFWO\DQFKRUHGLQWRSRVLWLRQDQGDOOSLSHZRUNLVLQVWDOOHGXVLQJ
HOHFWURIXVLRQRUPHFKDQLFDOHQWU\VHDOVDK\GURVWDWLFWHVWFDQEHFDUULHGRXWWRHQVXUHWKHLQWHJULW\RIDOOSLSH
SHQHWUDWLRQV
7(67352&(66
(QVXUHDOOSLSHSHQHWUDWLRQVDUHIUHHIURPEHGGLQJRUEDFNÀOOPDWHULDORUDQ\RWKHU
1RWHV
REVWUXFWLRQ
)LOOWKHVXPSZLWKIUHVKZDWHU 1RWHV
0DUNWKHZDWHUOHYHOLQVLGHWKHVXPSZLWKDPDUNHUSHQRUFKLQDJUDSKSHQFLO 1RWHV
([DPLQHWKHSLSHHQWU\VHDOVIRUVLJQVRIOHDNLQJZDWHU 1RWHV
/HDYHZDWHULQVXPSIRUKRXU 1RWHV
7(675(68/7
3$66 )$,/
5HFWLI\DQ\IDLOXUHVDQGUHSHDWWHVWLQJXQWLOSDVVLVDFKLHYHG
&HUWLÀFDWLRQ6LJQ2II
7KHDERYHGHVFULEHGVXPSKDVEHHQFKHFNHGIRUFRUUHFWLQVWDOODWLRQYLVXDOO\DQGE\PHDQVRIDYDFXXPRUK\GURVWDWLFWHVW
,WKDVEHHQIRXQGWREHLQVWDOOHGLQDFFRUGDQFHZLWK8336\VWHPVLQVWDOODWLRQJXLGHOLQHVDQGKDVEHHQFHUWLÀHGE\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHLQIRUPDWLRQJLYHQDERYHLVWUXHDQGFRUUHFW
6LJQHGE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBGD\PRQWK\HDU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8337$1.&+$0%(59$&8807(67
3$57
9$&8807(672)8337$1.&+$0%(5
6LWH1DPH
&KDPEHULQVWDOOHGRQ7DQN&RPSDUWPHQW1R
7HVW²&KDPEHU%DVHWR7DQN7LJKWQHVV7HVW
2QFHWKHFKDPEHUEDVHKDVEHHQEROWHGWRWKHWDQNÁDQJHXVLQJVHDOLQJJDVNHWRQÁDQJHDQGEDFNLQJSODWHVWKHMRLQW
VKRXOGEHWHVWHGWRHQVXUHLQWHJULW\7KLVFDQEHGRQHDWWKH&RRNVRQDQG=LQQIDFWRU\EHIRUHWKHWDQNLVVKLSSHGWRVLWH
RULWFDQEHGRQHRQVLWH
7(67352&(66
(QVXUHYDFXXPOLGJDVNHWVDQGFKDPEHUEDVHÁDQJHDUHFOHDQDQGIUHHIURPGLUWRUGHEULV 1RWHV
3URSHUO\SRVLWLRQYDFXXPOLGRQFKDPEHUEDVHÁDQJH 1RWHV
(QVXUHYDFXXPWHVWNLWXQLWLVSODFHGRXWVLGH]RQH 1RWHV
&KHFNKRVHVWRHQVXUHWKH\DUHLQJRRGFRQGLWLRQDQGFRQQHFWWRWHVWXQLWDQGOLG 1RWHV
(QVXUHXQLWSRZHUVZLWFKLVLQ´µSRVLWLRQDQGFRQQHFWSRZHUOHDGWRSRZHUVXSSO\ 1RWHV
6HOHFWIWFKDPEHUGHSWKVHWWLQJ 1RWHV
7XUQRQXQLWZDLWIRUFDOLEUDWLRQSURFHVVWRHQGÁDVKLQJFRORXUHGOLJKWV 1RWHV
9DFXXPSXPSZLOOUXQXQWLOFRUUHFWWHVWYDFXXPLVUHDFKHGDQGWKHEOXHOLJKWZLOOVKRZ 1RWHV
7(675(68/7
*UHHQOLJKW 3$66 5HGOLJKW )$,/
,IIDLOHGFKHFNIRUOHDNVDURXQGWDQNFKDPEHUEDVHMRLQWXVLQJVRDS\ZDWHURUOHDNGHWHFWLRQVSUD\
5HFWLI\DQ\IDLOXUHVDQGUHSHDWWHVWLQJXQWLOSDVVLVDFKLHYHG
7HVW²3LSHZRUN(QWU\6HDOV7LJKWQHVV7HVW
3LSHXSWKH833SURGXFWÀOOYHQWYDSRXUUHFRYHU\VLSKRQDQGHOHFWULFDOFRQGXLWOLQHVLQWRWKHFKDPEHUEDVHDVDSSURSULDWH
XVLQJ833HOHFWURIXVLRQRUPHFKDQLFDOHQWU\VHDOV2QFHFRPSOHWHUHSHDWWKHWHVWWRHQVXUHWKDWDOOWKHHQWU\VHDOVDUH
OHDNWLJKW
7(67352&(66
(QVXUHYDFXXPOLGJDVNHWVDQGFKDPEHUEDVHÁDQJHDUHFOHDQDQGIUHHIURPGLUWRUGHEULV 1RWHV
3URSHUO\SRVLWLRQYDFXXPOLGRQFKDPEHUEDVHÁDQJH 1RWHV
(QVXUHYDFXXPWHVWNLWXQLWLVSODFHGRXWVLGH]RQH 1RWHV
&KHFNKRVHVWRHQVXUHWKH\DUHLQJRRGFRQGLWLRQDQGFRQQHFWWRWHVWXQLWDQGOLG 1RWHV
(QVXUHXQLWSRZHUVZLWFKLVLQ´µSRVLWLRQDQGFRQQHFWSRZHUOHDGWRSRZHUVXSSO\ 1RWHV
6HOHFWIWFKDPEHUGHSWKVHWWLQJ 1RWHV
7XUQRQXQLWZDLWIRUFDOLEUDWLRQSURFHVVWRHQGÁDVKLQJFRORXUHGOLJKWV 1RWHV
9DFXXPSXPSZLOOUXQXQWLOFRUUHFWWHVWYDFXXPLVUHDFKHGDQGWKHEOXHOLJKWZLOOVKRZ 1RWHV
7(675(68/7
*UHHQOLJKW 3$66 5HGOLJKW )$,/
,IIDLOHGFKHFNIRUOHDNVDURXQGWDQNFKDPEHUEDVHMRLQWXVLQJVRDS\ZDWHURUOHDNGHWHFWLRQVSUD\
5HFWLI\DQ\IDLOXUHVDQGUHSHDWWHVWLQJXQWLOSDVVLVDFKLHYHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
8337$1.&+$0%(59$&8807(67
3$57
7HVW²5LVHU7LJKWQHVV7HVW
:HOGHOHFWURIXVLRQFKDPEHUULVHUWREDVHVHFWLRQ2QFHFRPSOHWHFRQGXFWWKLVWHVWWRHQVXUHWKHMRLQWLVOHDNWLJKW
7(67352&(66
(QVXUHYDFXXPOLGJDVNHWVDQGFKDPEHUEDVHÁDQJHDUHFOHDQDQGIUHHIURPGLUWRUGHEULV 1RWHV
3URSHUO\SRVLWLRQYDFXXPOLGRQFKDPEHUEDVHÁDQJH 1RWHV
(QVXUHYDFXXPWHVWNLWXQLWLVSODFHGRXWVLGH]RQH 1RWHV
&KHFNKRVHVWRHQVXUHWKH\DUHLQJRRGFRQGLWLRQDQGFRQQHFWWRWHVWXQLWDQGOLG 1RWHV
(QVXUHXQLWSRZHUVZLWFKLVLQ´µSRVLWLRQDQGFRQQHFWSRZHUOHDGWRSRZHUVXSSO\ 1RWHV
6HOHFWIWFKDPEHUGHSWKVHWWLQJ 1RWHV
7XUQRQXQLWZDLWIRUFDOLEUDWLRQSURFHVVWRHQGÁDVKLQJFRORXUHGOLJKWV 1RWHV
9DFXXPSXPSZLOOUXQXQWLOFRUUHFWWHVWYDFXXPLVUHDFKHGDQGWKHEOXHOLJKWZLOOVKRZ 1RWHV
7(675(68/7
*UHHQOLJKW 3$66 5HGOLJKW )$,/
,IIDLOHGFKHFNIRUOHDNVDURXQGWDQNFKDPEHUEDVHMRLQWXVLQJVRDS\ZDWHURUOHDNGHWHFWLRQVSUD\
5HFWLI\DQ\IDLOXUHVDQGUHSHDWWHVWLQJXQWLOSDVVLVDFKLHYHG
&HUWLÀFDWLRQ6LJQ2II
7KHDERYHGHVFULEHGFKDPEHUKDVEHHQFKHFNHGIRUFRUUHFWLQVWDOODWLRQYLVXDOO\DQGE\PHDQVRIDYDFXXPWHVW,WKDVEHHQ
IRXQGWREHLQVWDOOHGLQDFFRUGDQFHZLWK8336\VWHPVLQVWDOODWLRQJXLGHOLQHVDQGKDVEHHQFHUWLÀHGE\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KHLQIRUPDWLRQJLYHQDERYHLVWUXHDQGFRUUHFW
6LJQHGE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBGD\PRQWK\HDU
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
:$7(5+$00(5())(&7
$TXLFNFKDQJHRIWKHÁRZLQVLGHDSLSLQJV\VWHPFDQFDXVHDVXGGHQSUHVVXUH
LQFUHDVHRYHUDQGDERYHWKHQRPLQDOZRUNLQJSUHVVXUH7KLV´ZDWHUKDPPHUµ
HIIHFWFDQRFFXUHYHU\WLPHDYDOYHLVRSHQHGFORVHGRUDSXPSLVVWDUWHGVKXW
RII7KHIRUPXODIRUSUHVVXUHYDULDWLRQ¨3LVJLYHQE\
¨3 F¨YJ=
:KHUHSLVWKHGHQVLW\RIZDWHUJLVDFFHOUDWLRQGXHWRJUDYLW\¨YLVWKHÁXLG
YHORFLW\FKDQJHDQGFLVWKHYHORFLW\RIDVKRFNZDYHLQWKHSLSH
F GHSHQGV RQ WKH HODVWLFLW\ RI WKH ÁXLG LQ WKH SLSH ZDOO DQG IRU D IUHHO\
VXSSRUWHGSLSHLVJLYHQE\
(S J
3
F
(S 'P
(Z W
:KHUH(ZLVWKHZDWHUHODVWLFLW\PRGXOXV(SWKHSLSHHODVWLFWL\PRGXOXV3WKH
ZDWHUGHQVLW\'PWKHPHDQSLSHGLDPHWHUDQGWKHSLSHZDOOWKLFNQHVV
7KHIROORZLQJGLDJUDPVKRZVWKHZDWHUKDPPHUHIIHFWIRUYDULRXVW\SHVRI
SLSLQJWKHÁXLGFRQVLGHUHGLQWKLVWHVWLVZDWHU
7KDQNVWRLWVÁH[LELOLW\833SLSHZRUNLVWKHSLSHV\VWHPZLWKWKHORZHVWSHDN
SUHVVXUH
833
)LEUHJODVV
6WHHO
3HDN3UHVVXUHEDU
,QLWLDO9HORFLW\
:DWHUKDPPHUHIIHFWIRUYDULRXVSLSLQJV\VWHPV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)8(/)/2:
833(;75$/,1('3,3()/2:/2665 $7(6
PP
PP
+HDG/RVVPP
/LWUHVSHUPLQXWH
833(;75$/,1('3,3($1'),//3,3()/2:/2665$7(6
PP
PP
PP)LOO
+HDG/RVVPP
/LWUHVSHUPLQXWH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
9HORFLW\RIOLTXLGIXHODQGYDSRXUÁRZLVJLYHQLQPVHFDQGIWPLQ
9HORFLW\RIOLTXLGIXHODQGIXHOYDSRXUIORZLVJLYHQLQPVHFDQGIWPLQ
1RPLQDO3LSH6L]H LQFKHV ´ ò´ ´ ´ ´ ´ ´ ´
'1 '1 '1 '1 '1 '1 '1 '1
8333LSHFRGH [ [ [ [ [ [ [
),//
3UHVVXUH5DWLQJ 31 31 31 31 31 31 31 31
3RO\HWK\OHQH*UDGH 3( 3( 3( 3( 3( 3( 3( 3(
:DOO7KLFNQHVVPLQ PP
,QWHUQDO'LDPHWHUQRP PP
&URVV6HFWLRQDO$UHD PPð
LQð
$YDLODELOLW\ 6WRFN 6WRFN 6WRFN 6WRFN 6WRFN 6WRFN 6WRFN 5HTXHVW
)/2: 9HORFLW\!
OP 9
PV
1R]]OH
86*DOPLQ 9
IWPLQ
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
)5(48(17/<$6.('48(67,216
4 ,V833SLSHÁH[LEOHRUULJLG"
$ 833SLSHFRPELQHVWKHEHVWRIERWKZRUOGVLWLVÁH[LEOHHQRXJKWRFRLO
DQGEHQGIRUHDVHRILQVWDOODWLRQEXWULJLGHQRXJKWREHXVHGIRUYDSRXU
UHFRYHU\95OLQHV
4 :LWKLQZKLFKDPELHQWWHPSHUDWXUHUDQJHFDQHOHFWURIXVLRQZHOGLQJFDQ
EHFDUULHGRXW"
$ )URP&WR&)WR)
4 :KDWDUHWKHUHFRPPHQGHGEDFNÀOOPDWHULDOVIRUEHGGLQJDQGEXULDORI
833SLSHDQGÀWWLQJV"
$ 6HHVHFWLRQRIWKLVPDQXDOIRUEHGGLQJDQGEDFNÀOOLQVWUXFWLRQV
4 :KDW LV WKH PLQLPXP EXULDO GHSWK UHFRPPHQGHG IRU 833 SLSH DQG
ÀWWLQJV"
$ PP
4 &DQ SRLQW ORDGLQJ GDPDJH DIIHFW SLSHV WKDW FURVV HDFK RWKHU EHORZ
JURXQG"
$ <HVFURVVLQJSLSHVVKRXOGEHSURWHFWHGE\DPLQLPXPRIFPRIFRPSDFWHG
EDFNÀOORUFPRISURWHFWLYH6W\URIRDP
4 ,VLWLPSRUWDQWWRDOLJQSLSHDQGÀWWLQJVERWKGXULQJZHOGLQJDQGFRROLQJ
SURFHVV"
$ <HV LW LV YHU\ LPSRUWDQW WR DOLJQ SLSH DQG ÀWWLQJV ERWK GXULQJ ZHOGLQJ DQG
FRROLQJSURFHVVDQGHQVXUHWKHUHDUHQRH[WHUQDOVWUHVVHVRUORDGLQJDFWLQJRQ
ZHOGDVVHPEOLHV
4 ,Q WKH HYHQW RI D SRZHU VKRUWDJH FDQ HOHFWURIXVLRQ ZHOGLQJ EH
UHVWDUWHG"
$ <HVEXWWKHDVVHPEO\PXVWKDYHFRPSOHWHO\FRROHGGRZQWRDPELHQWWHPSHUDWXUH
EHIRUHHOHFWURIXVLRQLVUHVWDUWHG
4 :KDWDUHWKHGLIIHUHQFHVEHWZHHQWKH833SLSHV\VWHPYHUVXVWKHEUDLGHG
ÁH[LEOHSLSLQJV\VWHPV"
$ 833LVGLIIHUHQWIURPEUDLGHGÁH[LEOHSLSLQJV\VWHPVLQWKDWWKHSRO\HWK\OHQH
OD\HUWKDWSURYLGHVWKHPHFKDQLFDOVWUHQJWKRIWKHV\VWHPLVD´SUHVVXUHµJUDGH
3RO\HWK\OHQHZLGHO\XVHGWKURXJKRXWWKHZRUOGIRUWKHFRQYH\DQFHRIQDWXUDO
JDV´3UHVVXUHµ JUDGH PHDQV WKDW LQGHSHQGHQW ODERUDWRULHV KDYH GHWHUPLQHG
WKHSURGXFWOLIHWLPHZKHQLWLVVXEMHFWWRSUHVVXUH
4 ,V833SLSHZRUNDVXFWLRQRQO\V\VWHP"+RZGR833SLSHDQGÀWWLQJV
SHUIRUPXQGHUFRQVWDQWSRVLWLYHRSHUDWLQJSUHVVXUHVRIXSWRSVL
EDUVRUN3D"
$ 833SLSHKDVEHHQLQVWDOOHGLQERWKSUHVVXUHDQGVXFWLRQW\SHV\VWHPV,QIDFW
WKH PDMRULW\ RI 3HWUR7HFKQLN SLSH KDV EHHQ LQVWDOOHG LQ SUHVVXUH DSSOLFDWLRQV
VLQFH
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
4 :KDWDUHWKHDGYDQWDJHVRIWKH833VHFRQGDU\FRQWDLQPHQWGRXEOHZDOO
SLSHV\VWHPYHUVXVRWKHUVHFRQGDULO\FRQWDLQHGSLSHV\VWHPV"
$ 7KHDGYDQWDJHVDUHWKDWWKH8336HFRQGDU\&RQWDLQPHQWSLSHLVLQIDFWDUHDO
SUHVVXUH SLSH V\VWHP DQG FDQ EH FRQWLQXRXVO\ RSHUDWHG DW SVL
EDUVRUN3D6HFRQGDU\FRQWDLQPHQWRUGRXEOHZDOOV\VWHPVXVHGE\RWKHU
FRPSHWLWRUVDUHPHUHO\DMDFNHWLQJFRQGXLWZLWKQRPHFKDQLFDOVWUHQJWK
$OVR8336HFRQGDU\&RQWDLQPHQWLVDVHPLULJLGSLSHZKLFKFRPSOLHVZLWK&$5%
73*%HQG5DGLXV'HWHUPLQDWLRQIRU8QGHUJURXQG6WRUDJH7DQN9DSRXU
5HWXUQ3LSLQJ$OVR833V\VWHPVLQFOXGHVJHQXLQHVHFRQGDU\FRQWDLQPHQWWHHV
DQGHOERZVZLWKDFRPSOHWHLQWHUVWLWLDOVSDFH
4 ,V833DIIHFWHGE\3HUPHDWLRQ"
$ 6LQFH VZHOOLQJ DQG JURZWK DUH VLGH HIIHFWV RI SHUPHDWLRQ WKHVH HIIHFWV FDQ
EHPRUHVHULRXVDQGSUHMXGLFLDOWRSLSHLQWHJULW\DQGVLWHVDIHW\WKDQDVPDOO
DPRXQWRIJDVGLIIXVLRQ
833([WUDSLSHZDVÀOOHGZLWK6XSHU8QOHDGHGJDVROLQHDQGWHVWHGIRUGD\V
DW&'XULQJWKDWWLPHQRZHLJKWORVVRUJURZWKZDVUHFRUGHG833SLSHZLOO
QRWVZHOOEHFDXVHWKHLQWHUQDOOLQHULVLPSHUYLRXVWRK\GURFDUERQV+\GURFDUERQV
GRQRWUHDFKWKH3RO\HWK\OHQHOD\HUZKLFKSURYLGHPHFKDQLFDOVWUHQJWK
4 ,W ZDV UHSRUWHG UHFHQWO\ WKDW D WKHUPRSODVWLF ÁH[LEOH SLSH V\VWHP
´VZHOOHGH[SDQGHGµJUHZLQOHQJWKEHFDXVHRIFRQWLQXRXVH[SRVXUHWR
K\GURFDUERQYDSRXUVZLWKLQDFRQWDLQPHQWVXPS7KHDEQRUPDOJURZWK
FDXVHG D IDLOXUH RI WKH FRQWDLQPHQW VXPS HQWU\ ÀWWLQJV:LOO 833 SLSH
VZHOOH[SDQG LQ OHQJWK GXH WR FRQWLQXRXV H[SRVXUH WR K\GURFDUERQ
YDSRXUV"
$ 833SULPDU\DQG833VHFRQGDU\FRQWDLQPHQWSLSHZLOOQRWQRWLFHDEO\VZHOORU
H[SDQGLQOHQJWKZKHQH[SRVHGFRQWLQXRXVO\WRK\GURFDUERQYDSRXUVLQVXPSV
7KHUHDVRQLVWKDWSLSHDQGÀWWLQJVHPSOR\SURSULHWDU\KLJKGHQVLW\PDWHULDOV
ZKLFKHQVXUHDKLJKHUGHJUHHRIK\GURFDUERQUHVLVWDQFH
4 &DQ,PRGLI\833SLSHZRUNRQFHLQVWDOOHGRUPDNHUHSDLUVWRDV\VWHP
ZKLFKKDVEHHQSK\VLFDOO\DEXVHG"
$ <HV 8QOLNH ÁH[LEOH SODVWLF KRVHV ZKLFK FDQ RQO\ EH MRLQHG ZLWK PHFKDQLFDO
ÀWWLQJVZKLFKDUHQRWDOORZHGWREHGLUHFWEXULHG 833·VZHOGLQJV\VWHPDOORZV
PRGLÀFDWLRQVWREHPDGHUDSLGO\DQGVDIHO\
&$87,211(9(5:(/'/,9(/,1(63HWUR7HFKQLNKDVLQVWUXFWLRQV
IRUZHOGLQJRQ´OLYHVLWHVµIXOO\GHVFULELQJKRZWRLVRODWHDQGSXUJH
SLSHVZKLFKKDYHFDUULHGIXHORUYDSRXUVHHVHFWLRQIRUGHWDLOV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
4 :KDW:RUNLQJ3UHVVXUHKDV833EHHQGHVLJQIRU"
$ )URPWKHRXWVHW DOO833SULPDU\SLSHLQDOOLWVGLDPHWHUVL]HVKDVEHHQUDWHG
31EDUaSVL DQGUHJXODUSURGXFWWHVWVVKRZWKDWWKLVUDWLQJLV
H[FHHGHGVKRZLQJDJUHDWPDUJLQRIVDIHW\
833 SULPDU\ SLSH LV GHVLJQHG IRU VXFWLRQ QHJDWLYH SUHVVXUH RU SUHVVXULVHG
V\VWHPV
$OO833VHFRQGDU\FRQWDLQPHQWSLSHLVUDWHG31EDUaSVLDQGSHUIRUPV
DW,WPD\EHSUHVVXULVHGDVSDUWRID/HDN'HWHFWLRQV\VWHP
4 %HFDXVH 833 LV VHPLULJLG ZKDW %HQG 5DGLXV LV SRVVLEOH GXULQJ
LQVWDOODWLRQ"
$ 7KLVLVODUJHO\WHPSHUDWXUHGHSHQGHQWEXWLQJHQHUDO\RXPD\XVHWKHVHYDOXHV
IRU833
)RUVPDOOHUUDGLLXVHWKH833UDQJHRIHOERZVDQGIRUPHGEHQGV
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
4 +RZ GR , NQRZ WKH SLSH , LQVWDOO WRGD\ ZLOO UHVLVW IXHO FKDQJHV LQ WKH
IXWXUH"
$ 9HKLFOH PDQXIDFWXUHUV QHDUO\ DOO XVH FRH[WUXGHG EORZ PRXOGHG IXHO WDQNV
DQGKDYHGRQHVRIRUPDQ\\HDUVWRUHGXFHZHLJKWDQGLQFUHDVHUHVLVWDQFHWR
VSOLWWLQJLQDFFLGHQWV,WLVXQWKLQNDEOHWKDWDQ\UHVSRQVLEOHRLOFRPSDQ\ZLWKDOO
WKHLUIXHOUHVHDUFKIDFLOLWLHVFRXOGHYHUPDUNHWDIXHOZKLFKGHVWUR\HGDXWRPRELOH
IXHOWDQNV
3LSHPDQXIDFWXUHUVWHVWWKHLUSURGXFWVWRYDULRXVLQWHUQDWLRQDOVWDQGDUGV8/
DQG,QVWLWXWHRI3HWUROHXP3LSHZRUN6SHFLÀFDWLRQDUHWZRVXFKH[DPSOHV8/
WHVWVLQFOXGHWRGD\·VIXHOVVXFKDV SUHPLXPOHDGHGJDVROLQH XQOHDGHGUHJXODU
JDVROLQHSOXV$670UHIHUHQFHIXHO¶&·WROXHQHDQG1RIXHORLO7KHVHFRPPRQ
IXHOV DUH VXSSOHPHQWHG E\ LQFUHDVHG VHYHULW\ IXHOV VXFK DV PHWKDQRO
HWKDQRO PHWKDQROUHIHUHQFHIXHO¶&· DQGHWKDQRO
UHIHUHQFHIXHO¶&·
4 7KHUHDUHRWKHUW\SHVRIWKHUPRIXVLRQZHOGLQJVRFNHWDYDLODEOH&DQ,
XVHWKH833ZHOGLQJVHWZLWKWKHP"
$ 1R833ZHOGLQJVHWVGHVLJQDWHG(:&8DUHVSHFLÀFDOO\PDGHIRUXVHZLWK833
(OHFWURIXVLRQVRFNHWVDQGÀWWLQJVGHVLJQHGIRU¶&RQVWDQW&XUUHQW·IXVLRQ
1RWH833¶&RQVWDQW&XUUHQW·PRGHOVPD\DSSHDUWRZRUNZLWKRWKHUPDQXIDFWXUHU·V
¶FRQVWDQWYROWDJH·GHYLFHVKRZHYHUWKHUHFDQEHQRJXDUDQWHHWKDWWKHFRUUHFWGHVLJQ
IXVLRQWHPSHUDWXUHZDVUHDFKHGIRUWKHUHTXLUHGWLPHRUWKDWDPELHQWWHPSHUDWXUH
FRPSHQVDWLRQZDVHIIHFWHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
6$)(7<
8336\VWHPVVKRXOGRQO\EHLQVWDOOHGE\DIXOO\WUDLQHGLQVWDOOHUIROORZLQJWKH
JXLGHOLQHVJLYHQE\3HWUR7HFKQLNRUDQ\ORFDODXWKRULW\
(OHFWURIXVLRQ6DIHW\
833ZHOGLQJXQLWVPXVWQHYHUEHRSHUDWHGLQ]RQHDUHDV
=RQHLQGLFDWHVWKDWDÁDPPDEOHYDSRXUZRXOGQRUPDOO\EHH[SHFWHGGXULQJ
URXWLQHRSHUDWLRQLHGXULQJIXHOÀOOLQJWUDQVIHU
LH7KHDUHDERXQGE\DGLVSHQVHUDQGVXPSRUWDQNVXPS
=RQHLVDQDUHDZKHUHDÁDPPDEOHDWPRVSKHUHZRXOGQRWQRUPDOO\H[LVW
DQGLILWGLGZRXOGEHRIDVKRUWGXUDWLRQLHVSLOODJHPDLQWHQDQFH
LH7KHDUHDLPPHGLDWHO\VXUURXQGLQJWKHGLVSHQVHUDQGVXPS7KLV=RQH
WDNHVWKHVKDSHRIDFRQHIURPWKHWRSRIWKHSXPSWRWKHÁRRUOHYHO7KHEDVH
RIWKHFRQHKDVDUDGLXVRIPIW7KHUHDVRQIRUWKHH[WHQVLRQRIWKH
=RQHDWJURXQGOHYHOLVWKDWIXHOYDSRXULVGHQVHUWKDQDLU
2XWVLGHRIWKLVDUHDLWLVGHHPHGWKDWDQ\YDSRXUVZRXOGKDYHGLOXWHGHQRXJK
WREHKDUPOHVV
833:HOGHUVFDQEHRSHUDWHGLQ]RQHDQGWKHZHOGLQJFDEOHVDQGÀWWLQJV
DUH]RQHUDWHG:HOGLQJFDQEHFDUULHGRXWLQ]RQHDUHDVDVORQJDVRQO\
WKHFDEOHVDUHLQWKLVDUHDDQGWKHZHOGLQJXQLWLWVHOILVSODFHGLQ]RQH833
ZHOGLQJFDEOHVDUHHDVLO\ORQJHQRXJKWRDOORZWKLVSURFHGXUH
&KHPLFDO6DIHW\
:KHUH XVLQJ FKHPLFDOV VXFK DV $FHWRQH GXULQJ WKH LQVWDOODWLRQ RI 833
V\VWHPVSURGXFWVEHVXUHWRIROORZDOOVDIHW\JXLGHOLQHVJLYHQRQWKHFKHPLFDO
FRQWDLQHUVWKHPVHOYHVRURQDQ\DFFRPSDQ\LQJOLWHUDWXUH
&RQÀQHG6SDFH/HJLVODWLRQ
6RPHLQVWDOODWLRQRI833SURGXFWVPD\RFFXULQFRQÀQHGVSDFHVZKHUHDODFN
RIR[\JHQDQGDFRQFHQWUDWLRQRIWR[LFYDSRXUVLVOLNHO\WREHH[SHULHQFHG
6XFKZRUNLQJFRQGLWLRQVDUHGDQJHURXVDQGDOOORFDOKHDOWKDQGVDIHW\JXLGHOLQHV
IRUZRUNLQJLQVXFKHQYLURQPHQWVVKRXOGEHIROORZHG
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
127(6
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
127(6
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21
3HWUR7HFKQLN$XVWUDOLD +($'2)),&(
3HWUR7HFKQLN/WG
3HWUR7HFKQLNGR%UDVLO 3HWUR7HFKQLN+RXVH
3HWUR7HFKQLN)UDQFH 2O\PSXV&ORVH
:KLWHKRXVH,QGXVWULDO(VWDWH
3HWUR7HNQLN$% ,SVZLFK
6XIIRON,3/1
3HWUR7HFKQLN,QF 8QLWHG.LQJGRP
3 '-DSDQ WHO
ID[
3HWUR7HFKQLN&KLQD HPDLOLQIR#SHWURWHFKQLNFRP
Z Z Z S H W U R W H F K Q L N F R P
,09D
)2//2:,167$//$7,21,16758&7,216121&203/,$1&(:,//,19$/,'$7(:$55$17<$1',167$//(5&(57,),&$7,21