$Ssurdfkdqg/Dqglqj $FFLGHQWV 5Hgxfwlrq: JHWWLQJWR Julsvzlwk

JHWWLQJWR
JULSVZLWK
$SSURDFKDQG/DQGLQJ
$FFLGHQWV5HGXFWLRQ
$)OLJKW2SHUDWLRQV9LHZ
,VVXH
2FWREHU
$,5%86,1'8675,(
)OLJKW 2SHUDWLRQV 6XSSRUW ± &XVWRPHU 6HUYLFHV 'LUHFWRUDWH
$,5%86 ,1'8675,( *HWWLQJ WR *ULSV ZLWK
)OLJKW 2SHUDWLRQV 6XSSRUW $SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ
)RUHZRUG
7KH EURFKXUH*HWWLQJ WR *ULSV ZLWK $SSURDFK x 3URYLGHV RU VXJJHVWV FRPSDQ\¶ DFFLGHQW
DQG /DQGLQJ $FFLGHQWV 5HGXFWLRQ SURYLGHV DQ SUHYHQWLRQVWUDWHJLHV DQGRU SHUVRQDO OLQHVRI

GHIHQVH IRU LQFLGHQWDFFLGHQW SUHYHQWLRQ
RYHUYLHZ RI WKH IO\LQJ WHFKQLTXHV DQG RSHUDWLRQDO
SXUSRVHV DQGRU IRU FRUUHFWLRQ SXUSRVHV
DVSHFWV LQYROYHG LQ DSSURDFKDQGODQGLQJ
DFFLGHQWV x (VWDEOLVKHV D VXPPDU\ RI RSHUDWLRQDO DQG
WUDLQLQJ NH\ SRLQWV
7KH EURFKXUH FRQVLVWV RI D VHW RI $SSURDFKDQG
/DQGLQJ %ULHILQJ 1RWHV x 3URYLGHV FURVVUHIHUHQFH WR WKH DVVRFLDWHG RU
UHODWHG %ULHILQJ 1RWHV DQG
(DFK %ULHILQJ 1RWH
x 5HIHUHQFHV WKH UHOHYDQW ,&$2 86 )$5 DQG
x 3UHVHQWV WKH VXEMHFW XVLQJ VWDWLVWLFDO GDWD (XURSHDQ -$5 GRFXPHQWV
x (PSKDVL]HV WKH DSSOLFDEOH VWDQGDUGV DQG EHVW 6KRXOG DQ\ GHYLDWLRQ DSSHDUV EHWZHHQ WKH
SUDFWLFHV VWDQGDUG RSHUDWLQJ SURFHGXUHV LQIRUPDWLRQ SURYLGHG LQ WKLV EURFKXUH DQG WKDW
VXSSOHPHQWDU\ WHFKQLTXHV RSHUDWLRQDO SXEOLVKHG LQ WKH DSSOLFDEOH $LUSODQH )OLJKW 0DQXDO
UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV $)0 )OLJKW &UHZ 2SHUDWLQJ 0DQXDO )&20
4XLFN 5HIHUHQFH +DQGERRN 45+ DQG )OLJKW &UHZ
x 'LVFXVVHV WKH IDFWRUV WKDW PD\ OHDG IOLJKW FUHZV
7UDLQLQJ 0DQXDO )&70 WKH ODWWHU VKDOO SUHYDLO DW
WR GHYLDWH IURP UHOHYDQW VWDQGDUGV IRU H\H
DOO WLPHV
RSHQLQJ SXUSRVHV
$OO UHDGHUV DUH HQFRXUDJHG WR VXEPLW WKHLU TXHVWLRQV

DQG VXJJHVWLRQV UHJDUGLQJ WKLV GRFXPHQW WR WKH
IROORZLQJ DGGUHVV
$LUEXV ,QGXVWULH
7UDLQLQJ DQG )OLJKW 2SHUDWLRQV 6XSSRUW
&XVWRPHU 6HUYLFHV 'LUHFWRUDWH

$WWHQWLRQ 0LFKHO 75(0$8'
2SHUDWLRQDO 6WDQGDUGV 'HYHORSPHQW
5RQG 3RLQW 0DXULFH %HOORQWH %3
%/$*1$& &HGH[ ± )5$1&(
7HOH[ $,5%8 )
6,7$ 7/6%,;
7HOHID[ RU
(PDLO PLFKHOWUHPDXG # DLUEXVIU
$,67) $
7DEOHRI&RQWHQWV
)RUHZRUG &UHZ &RRUGLQDWLRQ
+XPDQ )DFWRUV LQ $SSURDFKDQG/DQGLQJ

%ULHILQJ 1RWHV 6XPPDU\ $FFLGHQWV
&50 ,VVXHV LQ $SSURDFKDQGODQGLQJ
$/$5 7DVN )RUFH ± &RQFOXVLRQV DQG $FFLGHQWV
5HFRPPHQGDWLRQV
(IIHFWLYH 3LORW&RQWUROOHU &RPPXQLFDWLRQV
,QWUD&RFNSLW &RPPXQLFDWLRQV ± 0DQDJLQJ

,QWURGXFLQJ WKH %ULHILQJ 1RWHV
,QWHUUXSWLRQV DQG 'LVWUDFWLRQV
*ORVVDU\ RI 7HUPV DQG $EEUHYLDWLRQV

$OWLPHWHU DQG $OWLWXGH ,VVXHV
$OWLPHWHU 6HWWLQJ ± 8VH RI 5DGLR $OWLPHWHU

%ULHILQJ 1RWHV
$OWLWXGH GHYLDWLRQV
6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V
'HVFHQW DQG $SSURDFK 0DQDJHPHQW

2SHUDWLQJ 3KLORVRSK\
'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW
2SWLPXP 8VH RI $XWRPDWLRQ

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK
2SHUDWLRQV *ROGHQ 5XOHV

$SSURDFK +D]DUGV $ZDUHQHVV
6WDQGDUG &DOOV $SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO
7HUUDLQ $ZDUHQHVV

1RUPDO &KHFNOLVWV
9LVXDO ,OOXVLRQV $ZDUHQHVV

$SSURDFK DQG *RDURXQG %ULHILQJV
:LQGVKHDU $ZDUHQHVV
7DEOH RI &RQWHQWV
3DJH
5HDGLQHVV DQG &RPPLWPHQW WR /DQGLQJ 7HFKQLTXHV

*RDURXQG
3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG 2YHUUXQV
%HLQJ 3UHSDUHG WR *RDURXQG
7KH )LQDO $SSURDFK 6SHHG
)O\LQJ D 0DQXDO *RDURXQG

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH
7HUUDLQ $YRLGDQFH 3XOOXS 0DQHXYHU 2SWLPXP 8VH RI %UDNLQJ 'HYLFHV
/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\

%RXQFH 5HFRYHU\ ± 5HMHFWHG /DQGLQJ
$ERXW :LQG ,QIRUPDWLRQ
:KDW¶V \RXU &XUUHQW :LQG "

$SSURDFK 7HFKQLTXHV
)O\LQJ 6WDELOL]HG $SSURDFKHV &URVVZLQG /DQGLQJ
)O\LQJ &RQVWDQW$QJOH QRQ3UHFLVLRQ

$SSURDFKHV
$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV
)O\LQJ 9LVXDO $SSURDFKHV
7DEOH RI &RQWHQWV
3DJH
%ULHILQJ1RWHV6XPPDU\
,QWURGXFWLRQ 7KH VFRSH RI WKLV EURFKXUH H[WHQGV EH\RQG

DSSURDFKDQGODQGLQJ DFFLGHQWV E\ DGGUHVVLQJ
7KH EURFKXUH *HWWLQJ WR *ULSV ZLWK $SSURDFK x :LQG VKHDU DZDUHQHVV LQ DOO IOLJKW SKDVHV
DQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ SURYLGHV LQFOXGLQJ WDNHRII DQG ODQGLQJ
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG JXLGHOLQHV WR
x 7HUUDLQ DZDUHQHVV LQ DOO IOLJKW SKDVHV
LPSOHPHQW WKH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI
WKH IROORZLQJ LQWHUQDWLRQDO ZRUNLQJ JURXSV x 'HVFHQWDQGDSSURDFK SUHSDUDWLRQ
x )OLJKW 6DIHW\ )RXQGDWLRQ )6) ± &),7 DQG x ,QLWLDO GHVFHQW PDQDJHPHQW DQG
$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ
$/$5 7DVN )RUFH DQG x *RDURXQG DQG PLVVHGDSSURDFK
7KLV H[WHQGHG VFRSH DGGUHVVHV WKH W\SH RI HYHQWV

x 86 &RPPHUFLDO $YLDWLRQ 6DIHW\ 7HDP &$67
DQG FDXVDO IDFWRUV LQYROYHG LQ DSSUR[LPDWHO\
± -RLQW 6DIHW\ ,PSOHPHQWDWLRQ 7HDP -6,7 IRU
RI WRWDO KXOO ORVVHV
$/$5
&RQFOXVLRQV DQG 5HFRPPHQGDWLRQV

6WDWLVWLFDO 'DWD 2SHUDWLRQV DQG 7UDLQLQJ ,VVXHV
$SSURDFKDQGODQGLQJ DFFLGHQWV LH DFFLGHQWV WKDW
7KH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI WKH )OLJKW
RFFXU GXULQJ LQLWLDO DSSURDFK LQWHUPHGLDWH
6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH DUH DSSHQGHG
DSSURDFK ILQDO DSSURDFK RU ODQGLQJ UHSUHVHQW HYHU\
\HDU RI WRWDO KXOO ORVVHV DQG RI IDWDOLWLHV
WR WKLV %ULHILQJ 1RWHV 6XPPDU\
7KHVH FRQFOXVLRQV LGHQWLI\ WKH IROORZLQJ RSHUDWLRQV
7KHVH VWDWLVWLFDO GDWD KDYH QRW VKRZQ DQ\ GRZQ
DQG WUDLQLQJ LVVXHV DV IUHTXHQW FDXVDO IDFWRUV LQ
WUHQG RYHU WKH SDVW \HDUV
DSSURDFKDQGODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH
LQYROYLQJ &),7
7KH IOLJKW VHJPHQW IURP WKH RXWHU PDUNHU WR WKH
FRPSOHWLRQ RI WKH ODQGLQJ UROO UHSUHVHQWV RQO\ RI x 6WDQGDUG RSHUDWLQJ SURFHGXUHV
WKH IOLJKW WLPH EXW RI KXOO ORVVHV
x 'HFLVLRQPDNLQJ LQ WLPHFULWLFDO VLWXDWLRQV
7KH IROORZLQJ W\SHV RI HYHQWV DFFRXQW IRU RI

x 'HFLVLRQ WR LQLWLDWH D JRDURXQG ZKHQ ZDUUDQWHG
DSSURDFKDQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV
x 5XVKHG DQG XQVWDELOL]HG DSSURDFKHV
x &),7 LQFOXGLQJ ODQGLQJ VKRUW RI UXQZD\
x 3LORWFRQWUROOHU XQGHUVWDQGLQJ RI HDFK RWKHU¶
x /RVV RI FRQWURO
RSHUDWLRQDO HQYLURQPHQW
x 5XQZD\ RYHUUXQ
x 3LORWFRQWUROOHU FRPPXQLFDWLRQV
x 5XQZD\ H[FXUVLRQ DQG

x $ZDUHQHVV RI DSSURDFK KD]DUGV YLVXDO
x 1RQVWDELOL]HG DSSURDFKHV
LOOXVLRQV DGYHUVH ZLQG FRQGLWLRQV RU RSHUDWLRQV
RQ FRQWDPLQDWHG UXQZD\ DQG
x 7HUUDLQ DZDUHQHVV
%ULHILQJ 1RWHV 6XPPDU\

3DJH
2SHUDWLRQDO 5HFRPPHQGDWLRQV DQG x $SSURDFK DQG JRDURXQG EULHILQJV
*XLGHOLQHV x $OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV
%DVHG RQ WKH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI x 'HVFHQW SURILOH PDQDJHPHQW

WKH )6) DQG &$67 ZRUNLQJ JURXSV $LUEXV ,QGXVWULH
x (QHUJ\ PDQDJHPHQW GXULQJ DSSURDFK
KDV GHYHORSHG D VHW RI $SSURDFKDQG/DQGLQJ
%ULHILQJ 1RWHV WR SURYLGH EDFNJURXQG LQIRUPDWLRQ x 7HUUDLQ DZDUHQHVV
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ x $SSURDFK KD]DUGV DZDUHQHVV HJ YLVXDO

JXLGHOLQHV IRU WKH SUHYHQWLRQ RI DSSURDFKDQG LOOXVLRQV
ODQGLQJ LQFLGHQWV DQG DFFLGHQWV
x 8VH RI UDGLR DOWLPHWHU
7KH $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV DGGUHVV
x (OHPHQWV RI D VWDELOL]HG DSSURDFK DQG DSSURDFK
WKLUW\WKUHH RSHUDWLRQDO DQG WUDLQLQJ VXEMHFWV
JDWHV
JURXSHG LQWR HLJKW WKHPDWLF FKDSWHUV
x $SSURDFK SURFHGXUHV DQG WHFKQLTXHV IRU
7KH IROORZLQJ RYHUYLHZ RI WKH $SSURDFKDQG YDULRXV W\SHV RI DSSURDFKHV
/DQGLQJ %ULHILQJ 1RWHV KLJKOLJKWV WKH PDLQ
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ
x /DQGLQJ DQG EUDNLQJ WHFKQLTXHV IRU YDULRXV
W\SHV RI UXQZD\ FRQWDPLQDQWV DQG ZLQG
JXLGHOLQHV DSSOLFDEOH IRU HDFK WKHPH DQG VXEMHFW
FRQGLWLRQV DQG
7KHVH UHFRPPHQGDWLRQV DQG JXLGHOLQHV VKRXOG EH x 5HDGLQHVV DQG FRPPLWPHQW WR JRDURXQG

FRQVLGHUHG IRU LQFRUSRUDWLRQ LQ WKH RSHUDWRU¶V LH *3:67$:6 ZDUQLQJ XQVWDELOL]HG
RSHUDWLRQV PDQXDO DLUFUDIW RSHUDWLQJ PDQXDO DQG DSSURDFK ERXQFH UHFRYHU\
WUDLQLQJ PDQXDO DQG HPSKDVL]HG GXULQJ WUDQVLWLRQ
WUDLQLQJ OLQH WUDLQLQJ UHFXUUHQW WUDLQLQJ OLQH FKHFNV
DQG OLQH DXGLWV 2SWLPXP 8VH RI $XWRPDWLRQ
)RU DQ RSWLPXP XVH RI DXWRPDWLRQ WKH IROORZLQJ
6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V VKRXOG EH SURPRWHG GXULQJ WUDQVLWLRQ WUDLQLQJ DQG
UHFXUUHQW WUDLQLQJ
2SHUDWLQJ 3KLORVRSK\ x 8QGHUVWDQGLQJ WKH LQWHJUDWLRQ RI $3)' DQG

$7+5 PRGHV LH SDLULQJ RI PRGHV
&RPSDQ\ SROLFLHV WHFKQLFDO DQG &50 WUDLQLQJ OLQH x 8QGHUVWDQGLQJ DOO PRGH WUDQVLWLRQ DQG UHYHUVLRQ
FKHFNV DQG OLQH DXGLWV VKRXOG VHTXHQFHV
x 3URPRWH VWULFW DGKHUHQFH WR 623V DQG x 8QGHUVWDQGLQJ SLORWV\VWHP LQWHUIDFHV IRU
x ,GHQWLI\ DQG DGGUHVV WKH UHDVRQV IRU LQWHQWLRQDO 3LORWWRV\VWHP FRPPXQLFDWLRQ LH IRU
RU LQDGYHUWHQW GHYLDWLRQV IURP 623V PRGHV HQJDJHPHQW DQG WDUJHW VHOHFWLRQV
DQG
:LWKRXW VWULFW DGKHUHQFH WR 623V WKH HIIHFWLYH
LPSOHPHQWDWLRQ RI &50 SUDFWLFHV LV QRW SRVVLEOH 6\VWHPWRSLORW IHHGEDFN LH IRU PRGHV DQG
WDUJHWV FURVVFKHFN
623V VKRXOG HPSKDVL]H WKH IROORZLQJ DVSHFWV
IUHTXHQWO\ LQYROYHG LQ DSSURDFKDQGODQGLQJ
x $ZDUHQHVV RI DYDLODEOH JXLGDQFH LH $3)'
DQG $7+5 HQJDJHPHQW PRGHV DUPHG RU
DFFLGHQWV
HQJDJHG DQG VHOHFWHG WDUJHWV DV DQQXQFLDWHG
x 7DVN VKDULQJ RQ 3)' )0$ DQG VFDOHV DQG RQ 1'
x 5XOHV IRU XVH RI DXWRPDWLRQ x $OHUWQHVV WR DGDSW WKH OHYHO RI DXWRPDWLRQ WR WKH
WDVN DQGRU FLUFXPVWDQFHV RU WR UHYHUW WR KDQG
x 6WDQGDUG FDOOV
IO\LQJ PDQXDO WKUXVW FRQWURO LI UHTXLUHG DQG
x 8VH RI QRUPDO FKHFNOLVWV
x $GKHUHQFH WR GHVLJQ SKLORVRSK\ RSHUDWLQJ
SKLORVRSK\ DQG 623V

3DJH
2SHUDWLRQV *ROGHQ 5XOHV ,I RQO\ RQH OHVVRQ ZHUH WR EH OHDUQHG IURP WKH
SURSRVHG VHW RI *ROGHQ 5XOHV WKH IROORZLQJ LV
7KH RSHUDWLRQV *ROGHQ 5XOHV GHILQHG E\ $LUEXV SURSRVHG
,QGXVWULH DVVLVW WUDLQHHV LQ PDLQWDLQLQJ WKHLU EDVLF

DLUPDQVKLS HYHQ DV WKH\ SURJUHVV WR LQWHJUDWHG DQG :KDWHYHU WKH SUHYDLOLQJ FRQGLWLRQV DOZD\V HQVXUH
DXWRPDWHG DLUFUDIW PRGHOV WKDW RQH SLORW LV FRQWUROOLQJ DQG PRQLWRULQJ WKH IOLJKW
SDWK RI WKH DLUFUDIW
*HQHUDO *ROGHQ 5XOHV
x $XWRPDWHG DLUFUDIW FDQ EH IORZQ OLNH DQ\

6WDQGDUG &DOOV
RWKHU DLUFUDIW
6WDQGDUG &DOOV HQVXUH HIIHFWLYH LQWHUDFWLRQ DQG

x )O\ 1DYLJDWH &RPPXQLFDWH DQG 0DQDJH ² LQ FRPPXQLFDWLRQ EHWZHHQ FUHZPHPEHUV DQG WKXV
WKDW RUGHU HQKDQFH IOLJKW FUHZ VLWXDWLRQDO DZDUHQHVV
x 2QH KHDG XS DW DOO WLPHV &DOOV &RPPDQGV DQG 5HVSRQVHV

$FNQRZOHGJHPHQWV DUH RI HTXDO LPSRUWDQFH WR
x &URVV FKHFN WKH DFFXUDF\ RI WKH )06 ZLWK JXDUDQWHH D WLPHO\ DFWLRQ RU FRUUHFWLRQ
UDZ GDWD
7KH XVH RI VWDQGDUG FDOOV DQG DFNQRZOHGJHPHQWV
UHGXFHV WKH ULVN RI WDFWLFDO VKRUWWHUP GHFLVLRQ
x .QRZ \RXU )0$ >JXLGDQFH@ DW DOO WLPHV
PDNLQJ HUURUV HJ LQ DUPLQJ RU HQJDJLQJ $3)'
PRGHV VHWWLQJ JXLGDQFH WDUJHWV RU VHOHFWLQJ DLUFUDIW
x :KHQ WKLQJV GRQ·W JR DV H[SHFWHG 7DNH 2YHU
FRQILJXUDWLRQV
x 8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU WKH

8VH RI VWDQGDUG FDOOV LV RI SDUDPRXQW LPSRUWDQFH
WDVN DQG
IRU RSWLPXP XVH RI DXWRPDWLRQ LH DZDUHQHVV RI
DUPLQJ RU HQJDJHPHQW RI PRGHV VHWWLQJ RI WDUJHWV
x 3UDFWLFH WDVN VKDULQJ DQG EDFNXS HDFK RWKHU
ODWHUDO UHYLVLRQ RU YHUWLFDO UHYLVLRQ RI )06 IOLJKW SODQ
PRGH WUDQVLWLRQV HWF
*ROGHQ 5XOHV IRU $EQRUPDO DQG (PHUJHQF\

:KHQ GHILQLQJ VWDQGDUG FDOOV VWDQGDUGL]DWLRQ
&RQGLWLRQV
DFURVV IOHHWV DQG RSHUDWLRQDO HIILFLHQF\ VKRXOG EH
FDUHIXOO\ EDODQFHG
x 8QGHUVWDQG WKH SUHYDLOLQJ FRQGLWLRQ EHIRUH
DFWLQJ
x $VVHVV ULVNV DQG WLPH SUHVVXUHV

1RUPDO &KHFNOLVWV
,QLWLDWLQJ DQG FRPSOHWLQJ QRUPDO FKHFNOLVWV LQ D
x 5HYLHZ DQG HYDOXDWH WKH DYDLODEOH RSWLRQV
WLPHO\ PDQQHU LV WKH PRVW HIIHFWLYH PHDQV RI
SUHYHQWLQJ WKH RPLVVLRQ RI DFWLRQV RU SUHYHQWLQJ
x 0DWFK WKH UHVSRQVH WR WKH VLWXDWLRQ
LQDSSURSULDWH DFWLRQV
x 0DQDJH ZRUNORDG
([SOLFLW FDOOV VKRXOG EH GHILQHG LQ WKH 623V IRU WKH
LQWHUUXSWLRQ KROG DQG UHVXPSWLRQ FRQWLQXDWLRQ RI
x &UHDWH D VKDUHG SUREOHP PRGHO ZLWK RWKHU
D QRUPDO FKHFNOLVW LH LQ FDVH RI LQWHUUXSWLRQ RU
FUHZPHPEHUV E\ FRPPXQLFDWLQJ DQG
GLVWUDFWLRQ
x $SSO\ UHFRPPHQGHG SURFHGXUHV DQG RWKHU
DJUHHG DFWLRQV

3DJH
'LVFLSOLQHG XVH RI QRUPDO FKHFNOLVWV VKRXOG EH x 5REXVW VWDQGDUG RSHUDWLQJ SURFHGXUHV
x +LJKOLJKWHG DW DOO VWDJHV RI WUDQVLWLRQ WUDLQLQJ x (IIHFWLYH &50 SUDFWLFHV DQG

OLQH WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ DQG
x 3HUVRQDO OLQHVRIGHIHQVH
x (PSKDVL]HG DW WKH RSSRUWXQLW\ RI DOO FKHFNV DQG
DXGLWV SHUIRUPHG GXULQJ OLQH RSHUDWLRQ

&50 ,VVXHV LQ $SSURDFKDQGODQGLQJ
$FFLGHQWV
&50 LVVXHV DUH LQYROYHG WR VRPH GHJUHH LQ HYHU\
7R HQVXUH PXWXDO XQGHUVWDQGLQJ DQG HIIHFWLYH
LQFLGHQW RU DFFLGHQW HJ QRQDGKHUHQFH WR
FRRSHUDWLRQ DPRQJ FUHZPHPEHUV DQG ZLWK $7& LQ
SURFHGXUHV LQWHUDFWLRQ ZLWK DXWRPDWHG V\VWHPV
GHSWK DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH
FRQGXFWHG RQ HDFK IOLJKW
7KH PLQLPXP FRQWHQW RI &50 WUDLQLQJ LV GHILQHG E\
UHJXODWLRQV EXW DLUOLQHV VKRXOG FRQVLGHU DGGLWLRQDO
7KH DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH
&50 WUDLQLQJ WR DFFRXQW IRU VSHFLILF UHTXLUHPHQWV
DGDSWHG WR WKH FRQGLWLRQV RI WKH IOLJKW DQG
VXFK DV PXOWLFXOWXUDO IOLJKW FUHZV DQGRU GLIIHUHQW
FRQFHQWUDWH RQ WKH LWHPV WKDW DUH UHOHYDQW IRU WKH
DUHDV RI RSHUDWLRQ
SDUWLFXODU DSSURDFK DQG ODQGLQJ HJ VSHFLILF
DSSURDFK KD]DUGV
&50 SUDFWLFHV RSWLPL]H WKH SHUIRUPDQFH RI WKH
HQWLUH FUHZ LH LQFOXGLQJ IOLJKW FUHZ DQG FDELQ
7KH DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG
FUHZ DQG PDLQWHQDQFH SHUVRQQHO
LQFOXGH WKH IROORZLQJ $/$5FULWLFDO LWHPV
x 0LQLPXP VDIH DOWLWXGH &50 VNLOOV FRQWULEXWH WR
x 7HUUDLQ DQG PDQPDGH REVWDFOHV IHDWXUHV x 5HOLHYH WKH HIIHFWV RI SUHVVXUHV LQWHUUXSWLRQV
DQG GLVWUDFWLRQV
x :HDWKHU FRQGLWLRQV
x 3URYLGH EHQFKPDUNV IRU WLPHO\ GHFLVLRQPDNLQJ
x 5XQZD\ FRQGLWLRQ DQG
x 2WKHU DSSURDFK KD]DUGV HJ WHUUDLQ YLVXDO x 3URYLGH VDIHJXDUGV IRU HIIHFWLYH HUURU
LOOXVLRQV PDQDJHPHQW WKXV PLQLPL]LQJ WKH HIIHFWV RI
ZRUNLQJ HUURUV
x $SSOLFDEOH PLQLPXPV YLVLELOLW\ RU 595 FHLOLQJ
DV DSSOLFDEOH
x $SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH

(IIHFWLYH 3LORW&RQWUROOHU &RPPXQLFDWLRQV
x )LQDO DSSURDFK IOLJKW SDWK DQJOH DQG YHUWLFDO $FKLHYLQJ HIIHFWLYH SLORWFRQWUROOHU FRPPXQLFDWLRQV
VSHHG DQG UHTXLUHV D JOREDO DSSURDFK WKH LPSRUWDQFH RI WKH
IROORZLQJ NH\ SRLQWV VKRXOG EH HPSKDVL]HG
x *RDURXQG DOWLWXGH DQG PLVVHGDSSURDFK LQLWLDO
VWHSV x 5HFRJQLWLRQ DQG XQGHUVWDQGLQJ RI SLORWV¶ DQG
FRQWUROOHUV¶ UHVSHFWLYH ZRUNLQJ HQYLURQPHQWV
DQG FRQVWUDLQWV
&UHZ &RRUGLQDWLRQ
x 'LVFLSOLQHG XVH RI VWDQGDUG SKUDVHRORJ\
+XPDQ )DFWRUV LQ $SSURDFKDQG/DQGLQJ x 6WULFW DGKHUHQFH WR SLORW FRQWUROOHU
$FFLGHQWV FRPPXQLFDWLRQ ORRS SLORW¶V IHHGEDFN UHDGEDFN
FRQWUROOHU¶V FRQILUPDWLRQ KHDUEDFN
$GGUHVVLQJ +XPDQ )DFWRUV LVVXHV LQ DSSURDFKDQG
ODQGLQJ LQFLGHQWV DQG DFFLGHQWV LV DQ HIIRUW WKDW x $OHUWQHVV WR UHTXHVW FODULILFDWLRQ RU FRQILUPDWLRQ
PXVW LQFOXGH ZKHQ LQ GRXEW
x 'HILQHG FRPSDQ\ VDIHW\ FXOWXUH DQG SROLFLHV x 5HDGLQHVV WR TXHVWLRQ DQ LQFRUUHFW FOHDUDQFH RU
DQ LQDGHTXDWH LQVWUXFWLRQ
x 5HODWHG DFFLGHQWSUHYHQWLRQ VWUDWHJLHV

3DJH
x 3UHYHQWLQJ VLPXOWDQHRXV WUDQVPLVVLRQV $OWLPHWHU DQG $OWLWXGH ,VVXHV
x $GDSWLQJ OLVWHQLQJ RI SDUW\OLQH FRPPXQLFDWLRQV

DV D IXQFWLRQ RI WKH IOLJKW SKDVH DQG
$OWLPHWHU 6HWWLQJ
8VH RI 5DGLR $OWLPHWHU
x $GRSWLQJ FOHDU FRQFLVH DQG DGDSWHG
FRPPXQLFDWLRQV LQ DQ HPHUJHQF\ VLWXDWLRQ
$OWLPHWHUVHWWLQJ HUURUV UHVXOW LQ D ODFN RI YHUWLFDO
VLWXDWLRQDO DZDUHQHVV WKH IROORZLQJ VKRXOG EH
HPSKDVL]HG WR PLQLPL]H DOWLPHWHUVHWWLQJ HUURUV DQG
,QWUD&RFNSLW &RPPXQLFDWLRQV ² WR RSWLPL]H WKH XVH RI EDURPHWULFDOWLPHWHU EXJ DQG
0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV UDGLRDOWLPHWHU '+
x $ZDUHQHVV RI DOWLPHWHU VHWWLQJ FKDQJHV ZLWK

2PLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ LV
SUHYDLOLQJ ZHDWKHU FRQGLWLRQV H[WUHPH FROG RU
WKH PRVW IUHTXHQW FDXVDO IDFWRU LQ DSSURDFKDQG
ZDUP IURQWV VWHHS IURQWDO VXUIDFHV VHPL
ODQGLQJ DFFLGHQWV
SHUPDQHQW RU VHDVRQDO ORZ SUHVVXUH DUHDV
,QWHUUXSWLRQV DQG GLVWUDFWLRQV XVXDOO\ UHVXOW IURP WKH x $ZDUHQHVV RI WKH DOWLPHWHUVHWWLQJ XQLW LQ XVH DW
IROORZLQJ IDFWRUV WKH GHVWLQDWLRQ DLUSRUW
x 3LORWFRQWUROOHU RU LQWUDFRFNSLW FRPPXQLFDWLRQV x $ZDUHQHVV RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ

LQFOXGLQJ IOLJKW FUHZ FDELQ FUHZ XVLQJ WZR LQGHSHQGHQW VRXUFHV IRU FURVVFKHFN
FRPPXQLFDWLRQV HJ 0(7$5 DQG $7,6 PHVVDJHV
x (IIHFWLYH 3)31) FURVVFKHFN DQG EDFNXS

x +HDGGRZQ ZRUN RU
x $GKHUHQFH WR 623V IRU
x 5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU WR DQ
XQDQWLFLSDWHG VLWXDWLRQ
UHVHW RI EDURPHWULFDOWLPHWHUV LQ FOLPE DQG
GHVFHQW
3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG XVH RI VWDQGE\DOWLPHWHU WR FURVVFKHFN PDLQ

EH GHYHORSHG WR PLQLPL]H LQWHUUXSWLRQV DQG DOWLPHWHUV
GLVWUDFWLRQV DQG WR OHVVHQ WKHLU FRQVHTXHQFHV
DOWLWXGH FDOORXWV
6WULFW DGKHUHQFH WR WKH IROORZLQJ VWDQGDUGV LV WKH UDGLRDOWLPHWHU FDOORXWV DQG

PRVW HIIHFWLYH SUHYHQWLRQ VWUDWHJ\
VHWWLQJ RI EDURPHWULFDOWLPHWHU EXJ DQG UDGLR
DOWLPHWHU '+
x 623V
x 2SHUDWLRQV *ROGHQ 5XOHV $OWLWXGH GHYLDWLRQV

x 6WHULOHFRFNSLW UXOH DQG $OWLWXGH GHYLDWLRQV PD\ UHVXOW LQ VXEVWDQWLDO ORVV RI
YHUWLFDO VHSDUDWLRQ DQGRU KRUL]RQWDO VHSDUDWLRQ
x 5HFRYHU\ WHFKQLTXHV VXFK DV ZKLFK FRXOG FDXVH D PLGDLU FROOLVLRQ RU &),7
,GHQWLI\ ± DVN ± GHFLGH ± DFW DQG $Q DOWLWXGH DZDUHQHVV SURJUDP VKRXOG HQFRXUDJH
WKH EODPHIUHH UHSRUWLQJ RI DOWLWXGH GHYLDWLRQ HYHQWV
3ULRULWL]H ± SODQ ± YHULI\

WR FRQWULEXWH WR D EHWWHU XQGHUVWDQGLQJ RI FDXVDO
IDFWRUV DQG FLUFXPVWDQWLDO IDFWRUV LQYROYHG LQ DOWLWXGH
GHYLDWLRQV

3DJH
7KH IROORZLQJ VDIHJXDUGV VKRXOG EH HPSKDVL]HG 7KH IROORZLQJ EHVW SUDFWLFHV VKRXOG EH SURPRWHG
x $GKHUHQFH WR WKH SLORW FRQWUROOHU x 7LPHOLQHVV RI GHVFHQW DQG DSSURDFK

FRPPXQLFDWLRQ ORRS LH UHDGEDFN KHDUEDFN SUHSDUDWLRQ
SURFHVV
x 6WULFW DGKHUHQFH WR 623V IRU )06 VHWXS
x &UHZ FURVVFKHFN DQG EDFNXS WR HQVXUH WKDW
x &URVVFKHFN RI DOO GDWD HQWULHV E\ ERWK
WKH DOWLWXGH VHOHFWHG LH RQ WKH )&8 LV WKH
FUHZPHPEHUV
DVVLJQHG DOWLWXGH LH UHFHLYHG IURP $7&
x 8VH RI 3)' 1' DQG )06 &'8 WR VXSSRUW DQG
x &URVVFKHFNLQJ WKDW WKH DVVLJQHG DOWLWXGH LV
LOOXVWUDWH WKH GHVFHQW DSSURDFK DQG JRDURXQG
DERYH WKH VHFWRU PLQLPXP VDIH DOWLWXGH XQOHVV
EULHILQJV
FUHZ LV DZDUH RI WKH DSSOLFDEOH PLQLPXP
YHFWRULQJ DOWLWXGH IRU WKH VHFWRU x &RQILUPDWLRQ RI )06 QDYLJDWLRQ DFFXUDF\
EHIRUH GHILQLQJ WKH XVH RI DXWRPDWLRQ IRU WKH
x 0RQLWRULQJ LQVWUXPHQWV DQG DXWRPDWLRQ ZKHQ
GHVFHQW DQG DSSURDFK LH )06 PRGHV RU
UHDFKLQJ WKH DVVLJQHG DOWLWXGH RU )/ DQG
VHOHFWHG PRGHV
x ,Q 90& DSSO\LQJ WKH WHFKQLTXH RQH KHDG LQVLGH
x 5HYLHZ RI WHUUDLQ DZDUHQHVV GDWD DQG RWKHU
RQH KHDG RXW ZKHQ DSSURDFKLQJ WKH FOHDUHG
DSSURDFK KD]DUGV DQG
DOWLWXGH RU )/
x 8VH RI W\SLFDO JXLGHOLQHV IRU GHVFHQWSURILOH
SODQQLQJ PRQLWRULQJ DQG DGMXVWPHQW
$OWLWXGH GHYLDWLRQV VKRXOG EH SUHYHQWHG E\ VWULFW
DGKHUHQFH WR DGHTXDWH 623V IRU
x 6HWWLQJ WKH DOWLPHWHUUHIHUHQFH RQ EDURPHWULF

DOWLPHWHUV
,QDELOLW\ WR DVVHVV RU PDQDJH WKH DLUFUDIW HQHUJ\
OHYHO GXULQJ WKH DSSURDFK RIWHQ LV FLWHG DV D FDXVH
x 6HOHFWLQJ WKH DVVLJQHG FOHDUHG DOWLWXGH RU )/
RI XQVWDELOL]HG DSSURDFKHV
RQ )&8 DQG
(LWKHU D GHILFLW RI HQHUJ\ EHLQJ ORZ DQGRU VORZ RU

x $OWLWXGH FDOORXWV
DQ H[FHVV RI HQHUJ\ EHLQJ KLJK DQGRU IDVW PD\
UHVXOW LQ DSSURDFKDQGODQGLQJ DFFLGHQWV VXFK DV
'HVFHQW DQG $SSURDFK 0DQDJHPHQW x /RVV RI FRQWURO
x /DQGLQJ VKRUW
'HVFHQW DQG $SSURDFK 3URILOH x +DUG ODQGLQJ

0DQDJHPHQW
x 7DLO VWULNH
,QDGHTXDWH PDQDJHPHQW RI GHVFHQWDQGDSSURDFK x 5XQZD\ H[FXUVLRQ DQGRU

SURILOH DQGRU LQFRUUHFW PDQDJHPHQW RI DLUFUDIW
HQHUJ\ OHYHO GXULQJ DSSURDFK PD\ UHVXOW LQ x 5XQZD\ RYHUUXQ
x /RVV RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV DQGRU

$ GHFHOHUDWLRQ EHORZ WKH ILQDO DSSURDFK VSHHG
VKRXOG EH DFFHSWHG RQO\ LQ WKH IROORZLQJ FDVHV
x 5XVKHG DQG XQVWDELOL]HG DSSURDFKHV
x *3:67$:6 WHUUDLQ DYRLGDQFH PDQHXYHU
(LWKHU VLWXDWLRQ LQFUHDVHV WKH ULVN RI DSSURDFKDQG x &ROOLVLRQ DYRLGDQFH PDQHXYHU DQG
ODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH LQYROYLQJ D &),7
x :LQG VKHDU UHFRYHU\ DQG HVFDSH SURFHGXUH

3DJH
1HYHUWKHOHVV LQ DOO WKUHH FDVHV WKH WKUXVW OHYHUV :KHQ DQG KRZ WR EXLOG DQG PDLQWDLQ WHUUDLQ
PXVW EH DGYDQFHG WR WKH PD[LPXP WKUXVW LH JR DZDUHQHVV "
DURXQG WKUXVW ZKLOH LQLWLDWLQJ WKH PDQHXYHU
7KH IROORZLQJ UHFRPPHQGDWLRQV DQG JXLGHOLQHV
VKRXOG EH XVHG WR GHYHORS FRPSDQ\ VWUDWHJLHV DQG
$SSURDFK +D]DUGV $ZDUHQHVV DFWLRQV HQKDQFLQJ WHUUDLQ DZDUHQHVV
$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO $SSURDFK FKDUWV
3URYLGLQJ IOLJKW FUHZV ZLWK GHSDUWXUH DQG DSSURDFK

$ FRPSDQ\ DZDUHQHVV SURJUDP RQ DSSURDFKDQG
FKDUWV IHDWXULQJ WHUUDLQ ZLWK FRORUVKDGHG FRQWRXUV
ODQGLQJ KD]DUGV VKRXOG UHYLHZ DQG GLVFXVV WKH
IROORZLQJ IDFWRUV WKDW PD\ FRQWULEXWH WR DSSURDFK
DQGODQGLQJ DFFLGHQWV $OWLPHWHUVHWWLQJ SURFHGXUHV
x )OLJKW FUHZ IDWLJXH

6HH ² $OWLPHWHU VHWWLQJ ² 8VH RI UDGLR
x 7\SH RI DSSURDFK
$OWLPHWHU
x $SSURDFK FKDUWV
x $LUSRUW LQIRUPDWLRQ VHUYLFHV )OLJKW SURJUHVV PRQLWRULQJ
x $LUSRUW DLU WUDIILF FRQWURO VHUYLFHV 7KH IROORZLQJ EHVW SUDFWLFHV QHHG WR EH
HPSKDVL]HG
x $LUSRUW HTXLSPHQW
x 7HUUDLQ DQG PDQPDGH REVWDFOHV

x 0RQLWRULQJ DQG FURVVFKHFNLQJ )06 JXLGDQFH
DQG QDYLJDWLRQ DFFXUDF\
x 9LVXDO LOOXVLRQV
x 0RQLWRULQJ LQVWUXPHQWV DQG QDYDLGV UDZ GDWD
x 9LVLELOLW\
x 8VLQJ DOO DYDLODEOH LQIRUPDWLRQ DYDLODEOH FRFNSLW
x :LQG FRQGLWLRQV GLVSOD\V QDYDLGV UDZ GDWD DQG FKDUWV DQG
x 5XQZD\ FRQGLWLRQ x 5HTXHVWLQJ FRQILUPDWLRQ RU FODULILFDWLRQ IURP

$7& LI DQ\ GRXEW H[LVWV DERXW WHUUDLQ FOHDUDQFH
x 5XQZD\ DQG WD[LZD\V PDUNLQJV
SDUWLFXODUO\ ZKHQ XQGHU UDGDU YHFWRUV
x /RZ WHPSHUDWXUH RSHUDWLRQ DQG
x %LUGVWULNH KD]DUGV $SSURDFK DQG JRDURXQG EULHILQJV
)OLJKW FUHZV VKRXOG EH DZDUH RI WKH FRPSRXQGLQJ $SSURDFK DQG JRDURXQG EULHILQJV VKRXOG LQFOXGH
QDWXUH RI WKHVH KD]DUGV GXULQJ DSSURDFK DQG WHUUDLQDZDUHQHVVFULWLFDO LWHPV
ODQGLQJ
6HH ² $SSURDFK DQG *RDURXQG %ULHILQJV
7HUUDLQ $ZDUHQHVV

3UHSDUHGQHVV DQG FRPPLWPHQW IRU JRDURXQG
7HUUDLQ DZDUHQHVV LV GHILQHG DV WKH FRPELQHG

DZDUHQHVV DQG NQRZOHGJH RI *RDURXQG LV QRW D IUHTXHQW RFFXUUHQFH 623V
VKRXOG VWUHVV WKH LPSRUWDQFH RI EHLQJ
x $LUFUDIW SRVLWLRQ
x &RPPLWWHG IRU DQ LPPHGLDWH UHVSRQVH WR
x $LUFUDIW DOWLWXGH (*3:6 7$:6 ZDUQLQJV
x $SSOLFDEOH PLQLPXP VDIH DOWLWXGH 06$ x 3UHSDUHG DQG PLQGHG IRU D JRDURXQG ZKHQ
ZDUUDQWHG
x 7HUUDLQ ORFDWLRQ DQG IHDWXUHV DQG
x 2WKHU KD]DUGV 6HH ² %HLQJ 3UHSDUHG IRU *RDURXQG

3DJH
&UHZ FRRUGLQDWLRQ FURVVFKHFN DQG EDFNXS PRQLWRULQJ E\ 31) RI KHDGGRZQ FXHV IRU
HIIHFWLYH FURVVFKHFN DQG EDFNXS HJ IRU
7KH IROORZLQJ HOHPHQWV RI DQ HIIHFWLYH FURVVFKHFN FDOOLQJ DQ\ H[FHVVLYHSDUDPHWHUGHYLDWLRQ
DQG EDFN XS VKRXOG EH SURPRWHG WR HQKDQFH WHUUDLQ
DZDUHQHVV
:LQGVKHDU $ZDUHQHVV
x $OWLWXGH FDOOV
)OLJKW FUHZ DZDUHQHVV DQG DOHUWQHVV DUH NH\ IDFWRUV
LQ WKH VXFFHVVIXO DSSOLFDWLRQ RI ZLQG VKHDU
x ([FHVVLYHSDUDPHWHUGHYLDWLRQ FDOORXWV
DYRLGDQFH DQG UHFRYHU\ WHFKQLTXHV
x 7DVN VKDULQJ DQG VWDQGDUG FDOOV IRU DFTXLVLWLRQ

7KH IROORZLQJ UHFRPPHQGDWLRQV FDQ EH XVHG IRU WKH
RI YLVXDO UHIHUHQFHV DQG
GHYHORSPHQW RI FRPSDQ\ LQLWLDWLYHV HQKDQFLQJ ZLQG
VKHDU DZDUHQHVV
x &RQFHSW RI SLORW PRQLWRULQJ WR GHILQH WKH UROH RI
WKH SLORWQRWIO\LQJ 31) LQ KD]DUGV FRQGLWLRQV
$YRLGDQFH 5HFRJQLWLRQ DQG 5HFRYHU\ (VFDSH DUH
WKH PDLQ GRPDLQV LQYROYHG LQ HIIHFWLYH ZLQG VKHDU
$ZDUHQHVV RI RWKHU DSSURDFK KD]DUGV DZDUHQHVV
x $YRLGDQFH
6HH ² $SSURDFK +D]DUGV $ZDUHQHVV ² *HQHUDO
DQG ² 9LVXDO ,OOXVLRQV $ZDUHQHVV

$VVHVVLQJ FRQGLWLRQV IRU D VDIH WDNHRII RU
DSSURDFKDQGODQGLQJ EDVHG RQ DOO
DYDLODEOH PHWHRURORJLFDO GDWD YLVXDO
9LVXDO ,OOXVLRQV $ZDUHQHVV REVHUYDWLRQV DQG RQERDUG HTXLSPHQW
'HOD\LQJ WDNHRII RU DSSURDFK RU GLYHUWLQJ WR

9LVXDO LOOXVLRQV WDNH SODFH ZKHQ FRQGLWLRQV PRGLI\
D PRUH VXLWDEOH DLUSRUW DQG
WKH SLORW¶V SHUFHSWLRQ RI WKH HQYLURQPHQW UHODWLYH WR
KLVKHU H[SHFWDWLRQV %HLQJ SUHSDUHG DQG FRPPLWWHG IRU DQ

LPPHGLDWH UHVSRQVH WR D SUHGLFWLYH RU
9LVXDO LOOXVLRQV PD\ UHVXOW LQ ODQGLQJ VKRUW KDUG UHDFWLYH ZLQG VKHDU ZDUQLQJ
ODQGLQJ RU UXQZD\ RYHUUXQ EXW PD\ DOVR UHVXOW LQ
VSDWLDO GLVRULHQWDWLRQ DQG ORVV RI FRQWURO x 5HFRJQLWLRQ
%HLQJ DOHUW WR UHFRJQL]H SRWHQWLDO RU H[LVWLQJ

7KH IROORZLQJ NH\ SRLQWV QHHG WR EH HPSKDVL]HG
ZLQG VKHDU FRQGLWLRQV EDVHG RQ DOO
DYDLODEOH ZHDWKHU GDWD RQERDUG HTXLSPHQW
x $ZDUHQHVV RI ZHDWKHU IDFWRUV
DQG PRQLWRULQJ RI DLUFUDIW IOLJKW SDUDPHWHUV
DQG IOLJKW SDWK DQG
x $ZDUHQHVV RI VXUURXQGLQJ WHUUDLQ DQG REVWDFOHV
(QKDQFLQJ LQVWUXPHQW VFDQ ZKHQHYHU
SRWHQWLDO ZLQG VKHDU LV VXVSHFWHG
x $ZDUHQHVV DQG DVVHVVPHQW RI DSSURDFK
KD]DUGV LH FRQGLWLRQV WKDW PD\ FDXVH YLVXDO
LOOXVLRQV VXFK DV ³EODFN KROH´
x 5HFRYHU\ (VFDSH
$YRLGLQJ ODUJH WKUXVW YDULDWLRQV RU WULP

x $GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ IRU FKDQJHV LQ UHVSRQVH WR VXGGHQ DLUVSHHG
DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG IRU IO\LQJ WKH YDULDWLRQV
YLVXDO VHJPHQW WKLV LQFOXGHV
)ROORZLQJ )' ZLQG VKHDU UHFRYHU\ DQG
PRQLWRULQJ E\ 3) RI RXWVLGH YLVXDO FXHV ZKLOH HVFDSH JXLGDQFH RU DSSO\LQJ WKH
WUDQVLHQWO\ UHIHUULQJ WR LQVWUXPHQWV WR VXSSRUW UHFRPPHQGHG )&20 $20 UHFRYHU\ DQG
DQG PRQLWRU WKH IOLJKW SDWK GXULQJ WKH YLVXDO HVFDSH SURFHGXUH DQG
VHJPHQW DQG
0DNLQJ PD[LPXP XVH RI DLUFUDIW HTXLSPHQW
HJ IOLJKW SDWK YHFWRU DV DYDLODEOH

3DJH
5HDGLQHVV DQG &RPPLWPHQW WR 6WULFW DGKHUHQFH WR GHILQHG 3) 31) WDVN VKDULQJ

DQG RSWLPXP XVH RI FUHZ UHVRXUFHV PDQDJHPHQW
*RDURXQG
DUH RI SDUDPRXQW LPSRUWDQFH GXULQJ D JRDURXQG
HJ IRU PRQLWRULQJ DQG FDOORXW RI DQ\ IOLJKW
%HLQJ 3UHSDUHG WR *RDURXQG SDUDPHWHU H[FHVVLYHGHYLDWLRQ
)DLOXUH WR UHFRJQL]H WKH QHHG IRU DQGRU WR H[HFXWH 7KH PDQXDO JRDURXQG WHFKQLTXH PXVW
D JRDURXQG DQG PLVVHGDSSURDFK ZKHQ x 0LQLPL]H WKH LQLWLDO DOWLWXGH ORVV
DSSURSULDWH LV D PDMRU FDXVH RI DSSURDFKDQG
ODQGLQJ DFFLGHQWV x 3UHYHQW DQ H[FHVVLYH SLWFK DWWLWXGH E\
0RUH WKDQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV IROORZLQJ )' SLWFK FRPPDQGV 656 RUGHUV
FRQWDLQHG HOHPHQWV ZKLFK VKRXOG KDYH EHHQ QRW H[FHHGLQJ GHJUHHV SLWFK DWWLWXGH
UHFRJQL]HG E\ WKH FUHZ DV LPSURSHU DQG ZKLFK
VKRXOG KDYH SURPSWHG D JRDURXQG FRQVLGHULQJ D GHJUHH SLWFK DWWLWXGH DV DQ
XOWLPDWH EDUULHU IURP ZKLFK WKH SLORW VKRXOG
%HFDXVH D JRDURXQG LV QRW D IUHTXHQW RFFXUUHQFH UHWXUQ LPPHGLDWHO\
WKH LPSRUWDQFH RI EHLQJ JRDURXQGSUHSDUHG DQG
JRDURXQGPLQGHG VKRXOG EH HPSKDVL]HG ,I DQ\ ZDUQLQJ LV DFWLYDWHG RU LI DQ\ RWKHU DEQRUPDO
,I WKH FULWHULD IRU D VDIH FRQWLQXDWLRQ RI WKH DSSURDFK FRQGLWLRQ RFFXUV
DUH QRW PHW WKH FUHZ VKRXOG LQLWLDWH D JRDURXQG x 3) PXVW FRQFHQWUDWH KLVKHU DWWHQWLRQ RQ IO\LQJ
DQG IO\ WKH SXEOLVKHG PLVVHGDSSURDFK WKH DLUFUDIW LH FRQWUROOLQJ DQG PRQLWRULQJ WKH
YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK DQG
)O\LQJ D 0DQXDO *RDURXQG x 31) PXVW DQDO\]H WKH DEQRUPDO FRQGLWLRQ DQG
SHUIRUP WKH UHTXLUHG DFWLRQV DV SHU DSSOLFDEOH
$ VDIH JRDURXQG VKRXOG SULRULWL]H WKH HOHPHQWV RI WDVN VKDULQJ DQG (&$0 DQGRU 45+
WKH IROORZLQJ 3V UXOH SURFHGXUHV
x 3LWFK
7HUUDLQ $YRLGDQFH 3XOOXS 0DQHXYHU
(VWDEOLVKLQJ DQG PDLQWDLQLQJ WKH WDUJHW SLWFK
DWWLWXGH &),7 HYHQWV DFFRXQW IRU DSSUR[LPDWHO\ RI DOO
x 3RZHU
DSSURDFKDQGODQGLQJ DFFLGHQWV DQG DUH WKH OHDGLQJ
FDXVH RI IDWDOLWLHV
6HWWLQJ JRDURXQG WKUXVW DQG FKHFNLQJ WKDW $ W\SLFDO DZDUHQHVV DQG WUDLQLQJ SURJUDP IRU WKH
WKH UHTXLUHG WKUXVW LV DFKLHYHG DQG UHGXFWLRQ RI FRQWUROOHGIOLJKWLQWRWHUUDLQ &),7
x 3HUIRUPDQFH VKRXOG
x (GXFDWH SLORWV RQ IDFWRUV WKDW PD\ FDXVH &),7
&RQILUPLQJ DLUFUDIW SHUIRUPDQFH
SRVLWLYH UDWH RI FOLPE x (QVXUH WKDW KRUL]RQWDO DQG YHUWLFDO VLWXDWLRQDO
JHDU XS
DZDUHQHVV DUH PDLQWDLQHG DW DOO WLPHV
VSHHG DW RU DERYH 9 $33 9 /6 x (QVXUH WKDW SLORWV DFKLHYH SURILFLHQF\ LQ WKH
H[HFXWLRQ RI SURFHGXUHV DQG WHFKQLTXHV
VSHHG EUDNHV UHWUDFWHG UHFRPPHQGHG IRU HDFK W\SH RI DSSURDFK
IODSV DV UHTXLUHG
x 3URYLGH SLORWV ZLWK DQ DGHTXDWH NQRZOHGJH RI WKH
UDGLRDOWLPHWHU DQG EDURDOWLPHWHU FDSDELOLW\ DQG OLPLWDWLRQV RI *3:6 RU (*3:6
LQGLFDWLRQV LQFUHDVLQJ DQG 7$:6 HTXLSPHQW LQVWDOOHG RQ WKHLU DLUFUDIW DQG
ZLQJVOHYHO

3DJH
x (QVXUH WKDW SLORWV DUH SURILFLHQW LQ SHUIRUPLQJ WKH $SSURDFK 7HFKQLTXHV

WHUUDLQ DYRLGDQFH PDQHXYHU UHTXLUHG LQ UHVSRQVH
WR D *3:6 RU (*3:6 7$:6 ZDUQLQJ DV )O\LQJ 6WDELOL]HG $SSURDFKHV
SXEOLVKHG LQ WKH DSSOLFDEOH )&20 DQG 45+
5XVKHG DQG XQVWDELOL]HG DSSURDFKHV DUH WKH ODUJHVW

7KH IROORZLQJ NH\ SRLQWV VKRXOG EH KLJKOLJKWHG ZKHQ FRQWULEXWRU\ IDFWRU LQ &),7 DQG RWKHU DSSURDFKDQG
GLVFXVVLQJ &),7 DZDUHQHVV DQG UHVSRQVH WR ODQGLQJ DFFLGHQWV
(*3:6 7$:6 ZDUQLQJV
5XVKHG DSSURDFKHV UHVXOW LQ LQVXIILFLHQW WLPH IRU WKH
x 3UHYHQWLYH DFWLRQV VKRXOG EH LGHDOO\ WDNHQ IOLJKW FUHZ WR FRUUHFWO\
EHIRUH (*3:6 7$:6 ZDUQLQJ
x 3ODQ
x 5HVSRQVH E\ 3) PXVW EH LPPHGLDWH x 3UHSDUH DQG
x ([HFXWH D VDIH DSSURDFK

x 31) PXVW PRQLWRU DQG FDOO WKH UDGLR DOWLWXGH DQG
DOWLWXGH WUHQG WKURXJKRXW WKH WHUUDLQ DYRLGDQFH
PDQHXYHU DQG 7KH IROORZLQJ GHILQHV WKH HOHPHQWV RI D VWDELOL]HG
DSSURDFK
x 3XOOXS PDQHXYHU PXVW EH FRQWLQXHG DW PD[LPXP
x 7KH DLUFUDIW LV RQ WKH FRUUHFW ODWHUDO IOLJKW SDWK
FOLPE SHUIRUPDQFH XQWLO ZDUQLQJ KDV FHDVHG DQG
DQG YHUWLFDO IOLJKW SDWK EDVHG RQ QDYDLGV
WHUUDLQ LV FOHDUHG LH DV LQGLFDWHG E\ D VWHDGLO\
JXLGDQFH RU YLVXDO UHIHUHQFHV
LQFUHDVLQJ UDGLRDOWLPHWHU UHDGLQJ
x 2QO\ VPDOO FKDQJHV LQ KHDGLQJ DQG SLWFK DUH
UHTXLUHG WR PDLQWDLQ WKLV IOLJKW SDWK
%RXQFH 5HFRYHU\ ² 5HMHFWHG /DQGLQJ
x 7KH DLUFUDIW LV LQ WKH GHVLUHG ODQGLQJ
$ UHMHFWHG ODQGLQJ LV GHILQHG DV D JRDURXQG FRQILJXUDWLRQ
PDQHXYHU LQLWLDWHG DIWHU WRXFKGRZQ RI WKH PDLQ
x 7KH SRZHU LV VWDELOL]HG DQG WKH DLUFUDIW LV
ODQGLQJ JHDU RU DIWHU ERXQFLQJ
WULPPHG WR PDLQWDLQ WKH WDUJHW ILQDO DSSURDFK
VSHHG RQ WKH GHVLUHG JOLGH SDWK
$ UHMHFWHG ODQGLQJ LV D FKDOOHQJLQJ PDQHXYHU
GHFLGHG DQG FRQGXFWHG LQ DQ XQDQWLFLSDWHG DQG x 7KH ODQGLQJ FKHFNOLVW KDV EHHQ DFFRPSOLVKHG
XQSUHSDUHG PDQQHU DV ZHOO DV DQ\ UHTXLUHG VSHFLILF EULHILQJ DQG
7KH 623V VKRXOG GHILQH WKH UHVSHFWLYH GHFLVLRQ

x 1R IOLJKW SDUDPHWHU H[FHHGV WKH OLPLWV
DSSOLFDEOH IRU WKH W\SH RI DSSURDFK
FULWHULD IRU
7KHVH OLPLWV DOVR GHILQH WKH FULWHULD IRU IOLJKW
x )XOOVWRS ODQGLQJ RU SDUDPHWHUV H[FHVVLYHGHYLDWLRQ FDOORXWV
x 5HMHFWHG ODQGLQJ DQG JRDURXQG

7KUHH HVVHQWLDO SDUDPHWHUV QHHG WR EH VWDELOL]HG IRU
D VDIH ILQDO DSSURDFK LQFOXGLQJ WKH YLVXDO VHJPHQW
3URFHGXUHV DQG WHFKQLTXHV VKRXOG EH SXEOLVKHG IRU
x $LUFUDIW WUDFN
ERXQFH UHFRYHU\ LQFOXGLQJ
x )OLJKW SDWK DQJOH DQG
x &RQWLQXHG ODQGLQJ RU
x $LUVSHHG
x 5HMHFWHG ODQGLQJ LH JRDURXQG

'HSHQGLQJ RQ WKH W\SH RI DSSURDFK DQG DLUFUDIW
HTXLSPHQW WKH PRVW DSSURSULDWH OHYHO RI DXWRPDWLRQ
DQG DYDLODEOH YLVXDO FXHV VKRXOG EH XVHG WR DFKLHYH
DQG PRQLWRU WKH VWDELOL]DWLRQ RI WKH DLUFUDIW

3DJH
:KHQ WUDQVLWLRQLQJ WR YLVXDO UHIHUHQFHV WKH SLORW¶V x $FTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG GHFLVLRQ
SHUFHSWLRQ RI WKH UXQZD\ DQG RXWVLGH HQYLURQPHQW
x 1RW GHVFHQGLQJ EHORZ WKH 0'$+ EHIRUH
VKRXOG EH NHSW FRQVWDQW E\ PDLQWDLQLQJ WKH
UHDFKLQJ WKH YLVXDO GHVFHQWGHFLVLRQ SRLQW
x 'ULIW FRUUHFWLRQ WR FRQWLQXH WUDFNLQJ WKH UXQZD\ 9'3 DQG
FHQWHUOLQH LH UHVLVWLQJ WKH WHQGHQF\
SUHPDWXUHO\ DOLJQ WKH DLUFUDIW ZLWK WKH UXQZD\
WR
x 3UHSDUHGQHVV IRU JRDURXQG
FHQWHUOLQH
x $LPLQJ SRLQW WR UHPDLQ RQ WKH FRUUHFW IOLJKW SDWK

7KH WUDQVLWLRQ IURP LQVWUXPHQW UHIHUHQFHV WR YLVXDO

XQWLO WKH IODUH KHLJKW LH UHVLVWLQJ WKH WHQGHQF\
UHIHUHQFHV LV DQ LPSRUWDQW HOHPHQW RI DQ\ W\SH RI

WR PRYH WKH DLPLQJ SRLQW FORVHU DQG WKXV
GHVFHQG EHORZ WKH GHVLUHG JOLGH SDWK ³GXFN
XQGHU´ DQG LQVWUXPHQW DSSURDFK
x )LQDO DSSURDFK VSHHG DQG JURXQG VSHHG WR 9DULDWLRQV H[LVW LQ DLUOLQH RSHUDWLQJ SKLORVRSKLHV
PDLQWDLQ WKH DLUFUDIW HQHUJ\ OHYHO DERXW 3)31) WDVN VKDULQJ IRU
x $FTXLVLWLRQ RI YLVXDO UHIHUHQFHV
)O\LQJ &RQVWDQW$QJOH QRQ3UHFLVLRQ x &RQGXFW RI ODQGLQJ DQG

$SSURDFKHV x &RQGXFW RI JRDURXQG
$OPRVW RI &),7 LQFLGHQWV DQG DFFLGHQWV RFFXU

GXULQJ VWHSGRZQ QRQSUHFLVLRQ DSSURDFKHV 7DVN VKDULQJ IRU WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV
GHSHQGV RQ
7KH FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFK x 7KH W\SH RI DSSURDFK LH RQ WKH WLPH DYDLODEOH
WHFKQLTXH RU &$13$ VKRXOG EH LPSOHPHQWHG DQG IRU WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG
WUDLQHG ZRUOGZLGH IRU SUHYHQWLQJ &),7 DQG RWKHU
DSSURDFKDQGODQGLQJ DFFLGHQWV x 7KH XVH RI DXWRPDWLRQ LH RQ WKH OHYHO RI
DXWRPDWLRQ DQG UHGXQGDQF\
7KH IROORZLQJ DVSHFWV QHHG WR EH VWUHVVHG
x &ULWHULD IRU GHWHUPLQLQJ WKH W\SH RI JXLGDQFH WR 7KH $LUEXV ,QGXVWULH RSHUDWLQJ SKLORVRSK\ DQG
EH XVHG WUDLQLQJ SKLORVRSK\ SURPRWH D 3)31) WDVN VKDULQJ
x )06 SUHSDUDWLRQ DV DSSOLFDEOH
ZLWK DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV E\
x 31) IRU QRQSUHFLVLRQ DSSURDFKHV DQG &$7 ,
x &RPSOHWHQHVV RI DSSURDFK EULHILQJ ,/6 DSSURDFKHV DQG
x 3ODQQLQJ RI DLUFUDIW FRQILJXUDWLRQ VHWXS x 3) IRU &$7 ,, &$7 ,,, ,/6 DSSURDFKHV
x 'HVFHQW PRQLWRULQJ
x (QHUJ\ PDQDJHPHQW GXULQJ LQLWLDO DSSURDFK )RU &$7 ,, &$7 ,,, RSHUDWLRQV WKH &$37 XVXDOO\ LV
LQWHUPHGLDWH DSSURDFK DQG ILQDO DSSURDFK WKH 3) DQG RQO\ DQ DXWRPDWLF DSSURDFK DQG ODQGLQJ
LV FRQVLGHUHG
x 1RW GHVFHQGLQJ EHORZ DQ DOWLWXGH EHIRUH
UHDFKLQJ WKH DVVRFLDWHG IL[
x 'HWHUPLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH DQG
YHUWLFDO VSHHG IRU WKH ILQDO GHVFHQW VHJPHQW $FFHSWLQJ DQ $7& UHTXHVW IRU D YLVXDO DSSURDFK RU
x &RPPHQFLQJ WKH GHVFHQW DW WKH H[DFW SRLQW UHTXHVWLQJ D YLVXDO DSSURDFK VKRXOG EH FDUHIXOO\
EDODQFHG DJDLQVW WKH IROORZLQJ GHFLVLRQ FULWHULD
x 0DLQWDLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH RU
YHUWLFDO VSHHG GXULQJ WKH ILQDO GHVFHQW x &HLOLQJ DQG YLVLELOLW\ FRQGLWLRQV
LQFOXGLQJ WKH YLVXDO VHJPHQW x 'DUNQHVV

3DJH
x :HDWKHU x 3HUIRUPLQJ DOWLWXGH DQG H[FHVVLYHSDUDPHWHUV

ZLQG WXUEXOHQFH
GHYLDWLRQ FDOORXWV DQG
x &RPSO\LQJ ZLWK JRDURXQG SROLF\ DV IRU
UDLQ VKRZHUV DQGRU
LQVWUXPHQW DSSURDFKHV
IRJ RU VPRNH SDWFKHV
x &UHZ H[SHULHQFH ZLWK DLUSRUW DQG DLUSRUW /DQGLQJ 7HFKQLTXHV

HQYLURQPHQW
3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG
VXUURXQGLQJ WHUUDLQ DQGRU
2YHUUXQV
VSHFLILF DLUSRUW DQG UXQZD\ KD]DUGV
REVWUXFWLRQV « 5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV DFFRXQW
UHVSHFWLYHO\ IRU DQG RI DOO DSSURDFKDQG
x 5XQZD\ YLVXDO DLGV ODQGLQJ DFFLGHQWV
7\SH RI DSSURDFK OLJKWLQJ V\VWHP DQG
5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV FDQ EH
$YDLODELOLW\ RI D 9$6, RU 3$3, FDWHJRUL]HG LQWR VL[ IDPLOLHV RI HYHQWV GHSHQGLQJ RQ
WKHLU SULPDU\ FDXVDO IDFWRU DV IROORZV
7KH IROORZLQJ NH\ SRLQWV VKRXOG EH GLVFXVVHG GXULQJ x (YHQWV UHVXOWLQJ IURP DQ XQVWDELOL]HG DSSURDFK
IOLJKW FUHZ WUDLQLQJ IRU VDIH YLVXDO DSSURDFKHV x (YHQW UHVXOWLQJ IURP DQ LQFRUUHFW IODUH
x $VVHVVLQJ WKH FRPSDQ\ H[SRVXUH LH WHFKQLTXH
RSHUDWLQJ HQYLURQPHQW x (YHQWV UHVXOWLQJ IURP XQDQWLFLSDWHG RU PRUH
x 'HYHORSLQJ FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG VHYHUHWKDQH[SHFWHG DGYHUVH ZHDWKHU
SHUVRQDO OLQHVRIGHIHQVH FRQGLWLRQV HJ WDLO ZLQG FURVVZLQG RU ZLQG
x :HLJKLQJ WKH WLPH VDYHG DJDLQVW WKH SRVVLEOH
VKHDU
ULVN x (YHQWV UHVXOWLQJ IURP UHGXFHG RU ORVV RI EUDNLQJ
x $ZDUHQHVV RI DQG DFFRXQWLQJ IRU ZHDWKHU
HIILFLHQF\
IDFWRUV x (YHQWV UHVXOWLQJ IURP DQ DEQRUPDO
FRQILJXUDWLRQ LQFOXGLQJ
DLUFUDIW GLVSDWFK XQGHU PLQLPXP HTXLSPHQW
x $ZDUHQHVV RI DLUSRUW HQYLURQPHQW DLUSRUW DQG OLVW >0(/@ GLVSDWFK GHYLDWLRQ JXLGH >''*@
UXQZD\ KD]DUGV RU
x 8VH RI D SXEOLVKHG YLVXDO DSSURDFK FKDUW RU XVH LQIOLJKW PDOIXQFWLRQ DQG
RI D YLVXDO FLUFXLW SDWWHUQ
x 7XQLQJ DQG PRQLWRULQJ DOO DYDLODEOH QDYDLGV x (YHQWV UHVXOWLQJ IURP LQFRUUHFW FUHZ DFWLRQ RU
LQDGHTXDWH FUHZ FRRUGLQDWLRQ XQGHU DGYHUVH
x 8VH RI DXWRPDWLRQ ZLWK WLPHO\ UHYHUVLRQ WR KDQG WHFKQLFDO RU ZHDWKHU FRQGLWLRQV
IO\LQJ
x $GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ &RPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG LQGLYLGXDO OLQHV
3) VKRXOG IO\ WKH DLUFUDIW DQG ORRN RXWVLGH RIGHIHQVH VKRXOG EH GHYHORSHG EDVHG RQ
LH EHLQJ KHDG XS ZKLOH x 6WULFW DGKHUHQFH WR 623V
31) VKRXOG PRQLWRU LQVWUXPHQWV LH EHLQJ
KHDG GRZQ x (QKDQFHG DZDUHQHVV RI HQYLURQPHQWDO IDFWRUV
x 0DLQWDLQLQJ YLVXDO FRQWDFW ZLWK UXQZD\ DQG RWKHU x (QKDQFHG XQGHUVWDQGLQJ RI DLUFUDIW
WUDIILF DW DOO WLPHV SHUIRUPDQFH DQG KDQGOLQJ WHFKQLTXHV DQG

3DJH
x (QKDQFHG DOHUWQHVV IRU 2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

IOLJKWSDUDPHWHUV PRQLWRULQJ
7R HQVXUH DQ RSWLPXP XVH RI EUDNLQJ GHYLFHV WKH
H[FHVVLYHGHYLDWLRQ FDOORXWV DQG IROORZLQJ DVSHFWV PXVW EH XQGHUVWRRG
PXWXDO FURVVFKHFN DQG EDFNXS x 'HVLJQ DQG RSHUDWLRQ RI HDFK EUDNLQJ GHYLFH
x 'LVWULEXWLRQ RI VWRSSLQJ IRUFHV GXULQJ ODQGLQJ

7KH )LQDO $SSURDFK 6SHHG UROO
x 7\SH RI EUDNLQJ UHTXLUHG WR DFKLHYH WKH GHVLUHG

$VVXULQJ D VDIH ODQGLQJ UHTXLUHV DFKLHYLQJ D
VWRSSLQJ GLVWDQFH
EDODQFHG GLVWULEXWLRQ RI VDIHW\ PDUJLQV EHWZHHQ
x )DFWRUV DIIHFWLQJ WKH RSWLPXP XVH RI EUDNLQJ
x 7KH FRPSXWHG ILQDO DSSURDFK VSHHG DQG
GHYLFHV DQG
x 7KH UHVXOWLQJ ODQGLQJ GLVWDQFH
x $SSOLFDEOH RSHUDWLRQDO JXLGHOLQHV
7KH DSSOLFDEOH )&20 DQG 45+ SURYLGH

$GKHULQJ WR WKH IROORZLQJ RSHUDWLRQDO JXLGHOLQHV
x 5HIHUHQFH DSSURDFK VSHHGV DQG HQVXUHV DQ RSWLPXP EUDNLQJ GXULQJ WKH ODQGLQJ UROO
x 6SHHG FRUUHFWLRQV DSSOLFDEOH IRU YDULRXV x $UPLQJ JURXQG VSRLOHUV

RSHUDWLRQDO IDFWRUV DQG DLUFUDIW FRQILJXUDWLRQV
x $UPLQJ DXWREUDNH ZLWK WKH PRVW DSSURSULDWH
PRGH IRU SUHYDLOLQJ FRQGLWLRQV HJ VKRUW
)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH UXQZD\ ORZ YLVLELOLW\ FRQWDPLQDWHG UXQZD\
8QGHUVWDQGLQJ IDFWRUV DIIHFWLQJ ODQGLQJ GLVWDQFH x 6HOHFWLQJ WKUXVW UHYHUVHUV DV VRRQ DV SRVVLEOH
FRQWULEXWHV WR SUHYHQWLQJ UXQZD\ RYHUUXQ HYHQWV ZLWK PD[LPXP UHYHUVH WKUXVW WKLV LQFUHDVHV
VDIHW\ RQ GU\ DQG ZHW UXQZD\ DQG LV PDQGDWRU\
:KHQ DVVHVVLQJ WKH ODQGLQJ GLVWDQFH IRU D JLYHQ RQ UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU
ODQGLQJ WKH IROORZLQJ IDFWRUV VKRXOG EH DFFRXQWHG VOXVK VQRZ RU LFH
IRU DQG FRPELQHG DV VSHFLILHG LQ WKH DSSOLFDEOH
)&20 45+ x 0RQLWRULQJ DQG FDOOLQJ JURXQG VSRLOHUV
H[WHQVLRQ
x 'LVSDWFK FRQGLWLRQV DV DSSOLFDEOH GLVSDWFK
XQGHU PLQLPXP HTXLSPHQW OLVW >0(/@ GLVSDWFK x 0RQLWRULQJ DQG FDOOLQJ DXWREUDNH RSHUDWLRQ
GHYLDWLRQ JXLGH >''*@
x %HLQJ UHDG\ WR WDNH RYHU IURP DXWREUDNH
x ,QIOLJKW IDLOXUHV DV DSSOLFDEOH
LI UHTXLUHG
x :HDWKHU FRQGLWLRQV HJ LFLQJ FRQGLWLRQVLFH
DFFUHWLRQ
x 0RQLWRULQJ HQJLQH RSHUDWLRQ LQ UHYHUVH WKUXVW
HJ LQFUHDVLQJ (*7 HYLGHQFH RI VXUJH
x :LQG FRQGLWLRQV LH ZLQG FRPSRQHQW DQG JXVW
VXVSHFWHG ZLQG VKHDU x 0RQLWRULQJ DLUVSHHG LQGLFDWLRQ DQG UHWXUQLQJ
UHYHUVH OHYHUV WR WKH UHYHUVH LGOH SRVLWLRQ DW WKH
x $LUILHOG HOHYDWLRQ
SXEOLVKHG LQGLFDWHG DLUVSHHG RU ZKHQ DLUVSHHG
x 5XQZD\ VORSH LI GRZQ KLOO IOXFWXDWLRQV RFFXU ZKLFKHYHU FRPH ILUVW
x 5XQZD\ FRQGLWLRQ QDWXUH DQG GHSWK RI x ,I UHTXLUHG XVLQJ PD[LPXP SHGDO EUDNLQJ DQG
FRQWDPLQDQW DQG
x 0DLQWDLQLQJ EUDNLQJ DFWLRQ XQWLO DVVXUHG WKDW WKH
x 8VH RI EUDNLQJ GHYLFHV WKUXVW UHYHUVHUV
DLUFUDIW ZLOO VWRS ZLWKLQ WKH UHPDLQLQJ UXQZD\
DXWREUDNH
OHQJWK

3DJH
/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\ x 0RQLWRULQJ RSHUDWLRQ RI DXWREUDNH RQ

FRQWDPLQDWHG UXQZD\ WKH VHOHFWHG GHFHOHUDWLRQ
)DFWRUV DVVRFLDWHG ZLWK ODQGLQJ RQ D ZHW UXQZD\ RU UDWH PD\ QRW EH DFKLHYHG WKHUHIRUH WKH OLJKW
RQ D UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU LQGLFDWLQJ WKDW WKH VHOHFWHG GHFHOHUDWLRQ UDWH LV
VOXVK VQRZ RU LFH VKRXOG EH DVVHVVHG FDUHIXOO\ DFKLHYHG PD\ QRW LOOXPLQDWH
EHIRUH EHJLQQLQJ WKH DSSURDFK
x /RZHULQJ WKH QRVH ODQGLQJ JHDU ZLWKRXW XQGXH
GHOD\ WR
7KH IROORZLQJ RSHUDWLRQDO UHFRPPHQGDWLRQV QHHG WR
EH HPSKDVL]HG LQFUHDVH WKH ZHLJKWRQZKHHOV DQG WKXV
LQFUHDVH WKH EUDNLQJ HIILFLHQF\ DQG
x 'LYHUVLRQ WR DQ DLUSRUW ZLWK EHWWHU UXQZD\
FRQGLWLRQV DQGRU OHVV FURVVZLQG FRPSRQHQW DFWLYDWH V\VWHPV DVVRFLDWHG ZLWK QRVH
ZKHQ DFWXDO FRQGLWLRQV VLJQLILFDQWO\ GLIIHU IURP ODQGLQJ JHDU VZLWFKHV HJ DQWLVNLG
IRUHFDVW FRQGLWLRQV RU LQ FDVH RI V\VWHP UHIHUHQFH VSHHG
PDOIXQFWLRQ
x $QWLFLSDWLQJ DV\PPHWU\ HIIHFWV WKDW ZRXOG

x $V UHTXLUHG RU ZKHQ WDNLQJ RYHU IURP
DXWREUDNH DSSO\LQJ EUDNHV QRUPDOO\ ZLWK D
SUHYHQW HIILFLHQW EUDNLQJ RU GLUHFWLRQDO FRQWURO
VWHDG\ SUHVVXUH
HJ FURVVZLQG VLQJOHWKUXVWUHYHUVHU
RSHUDWLRQ x )RU GLUHFWLRQDO FRQWURO XVLQJ UXGGHU SHGDOV DQG
GLIIHUHQWLDO EUDNLQJ DV UHTXLUHG LH QRW XVLQJ
x $YRLGLQJ ODQGLQJ RQ D FRQWDPLQDWHG UXQZD\
QRVHZKHHOVWHHULQJ WLOOHU
ZLWKRXW DQWLVNLG RU ZLWK D VLQJOH WKUXVW UHYHUVHU
x )RU LQRSHUDWLYH LWHPV DIIHFWLQJ WKH EUDNLQJ RU OLIW

x ,I GLIIHUHQWLDO EUDNLQJ LV QHFHVVDU\ DSSO\LQJ
SHGDO EUDNLQJ RQ WKH UHTXLUHG VLGH DQG UHOHDVLQJ
GXPSLQJ FDSDELOLW\ UHIHUULQJ WR WKH DSSOLFDEOH
FRPSOHWHO\ WKH SHGDO DFWLRQ RQ WKH RSSRVLWH
)&20 DQG 45+ IRU LQIOLJKW PDOIXQFWLRQV VLGH DQG
RU
x $IWHU UHDFKLQJ WD[L VSHHG XVLQJ QRVHZKHHO
0LQLPXP (TXLSPHQW /LVW 0(/ RU 'LVSDWFK VWHHULQJ ZLWK FDUH
'HYLDWLRQ *XLGH ''* IRU NQRZQ GLVSDWFK
FRQGLWLRQV
² 8VH RI :LQG ,QIRUPDWLRQ
x 6HOHFWLQJ DXWREUDNH ZLWK D PHGLXP RU ORZ
VHWWLQJ LI WKH FRQWDPLQDQW LV HYHQO\ GLVWULEXWHG 6HYHUDO VRXUFHV RI ZLQG LQIRUPDWLRQ DUH DYDLODEOH WR
WKH IOLJKW FUHZ
2Q FRQWDPLQDWHG UXQZD\ XVH RI D PHGLXP
VHWWLQJ XVXDOO\ LV UHFRPPHQGHG WR DVVXUH x $7& LH 0(7$5 $7,6 DQG WRZHU ZLQGV DQG
LPPHGLDWH EUDNLQJ DFWLRQ DIWHU WRXFKGRZQ LH
x $LUFUDIW V\VWHPV LH ,56 DQG )06 ZLQGV
ZLWKRXW WLPH GHOD\
x $SSURDFKLQJ RQ JOLGH SDWK DQG DW WKH WDUJHW ILQDO

(DFK ZLQG LQIRUPDWLRQ PXVW EH XQGHUVWRRG IRU
DSSURDFK VSHHG
DSSURSULDWH XVH GXULQJ YDULRXV IOLJKW SKDVHV
x $LPLQJ IRU WKH WRXFKGRZQ ]RQH
7KH IROORZLQJ IDFWV DQG ILJXUHV VKRXOG EH UHFDOOHG
x 3HUIRUPLQJ D ILUP WRXFKGRZQ WR SUHYHQW
K\GURSODQLQJ DQG HQVXUH URWDWLRQ RI PDLQ x 7KH 0(7$5 ZLQG LV D PLQXWH DYHUDJH ZLQG
ODQGLQJ JHDU ZKHHOV
x 7KH $7,6 RU WRZHU DYHUDJH ZLQG LV D PLQXWH
x 8VLQJ PD[LPXP UHYHUVH WKUXVW DV VRRQ DV DYHUDJH ZLQG
SRVVLEOH DIWHU WRXFKGRZQ DV WKUXVW UHYHUVHU
x 7KH $7,6 RU WRZHU JXVW LV WKH ZLQG SHDN YDOXH
HIILFLHQF\ LV KLJKHU DW KLJK VSHHG
GXULQJ WKH ODVW PLQXWH SHULRG
x &RQILUPLQJ WKH H[WHQVLRQ RI JURXQG VSRLOHUV

3DJH
x 7KH $7,6 PHVVDJH LV XSGDWHG RQO\ LI WKH ZLQG $GKHUHQFH WR WKH IROORZLQJ NH\ SRLQWV LQFUHDVHV
GLUHFWLRQ FKDQJHV E\ PRUH WKDQ GHJUHHV RU LI VDIHW\ GXULQJ FURVVZLQGODQGLQJ RSHUDWLRQV
WKH ZLQG YHORFLW\ FKDQJHV E\ PRUH WKDQ NW
x 8QGHUVWDQGLQJ DSSOLFDEOH RSHUDWLQJ IDFWRUV
RYHU D PLQXWH WLPH SHULRG
PD[LPXP UHFRPPHQGHG YDOXHV DQG OLPLWDWLRQV
x ,I DQ LQVWDQWDQHRXV ZLQG UHDGLQJ LV GHVLUHG DQG
x 8VLQJ UHFRPPHQGHG DQG SXEOLVKHG IO\LQJ
UHTXHVWHG IURP WKH $7& WKH SKUDVHRORJ\
WHFKQLTXHV DVVRFLDWHG ZLWK FURVVZLQG ODQGLQJ
³LQVWDQWZLQG³ VKRXOG EH XVHG LQ WKH UHTXHVW
VRPH FRQWUROOHUV PD\ SURYLGH VXFK LQVWDQWZLQG 1RWH

ZLWKRXW UHTXHVW XQGHU VKLIWLQJ DQGRU JXVWLQJ
$ ZLQJVOHYHO WRXFKGRZQ LH ZLWKRXW DQ\
ZLQG FRQGLWLRQV
GHFUDE PD\ EH VDIHU WKDQ D VWHDG\VLGHVOLS
x 7KH ,56 ZLQG LV D QHDUUHDOWLPH ZLQG WRXFKGRZQ ZLWK DQ H[FHVVLYH EDQN DQJOH
x 7KH )06 ZLQG LV D VHFRQGDYHUDJH ZLQG x 5HTXHVWLQJ WKH DVVLJQPHQW RI D PRUH IDYRUDEOH
DQG UXQZD\ LI SUHYDLOLQJ UXQZD\ FRQGLWLRQV DQG
x 7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG FURVVZLQG FRPSRQHQW DUH FRQVLGHUHG
JHQHUDOO\ DSSOLHV WR D VWHDG\ ZLQG DQG LV QRW D LQDGHTXDWH IRU D VDIH ODQGLQJ
OLPLWDWLRQ XQOHVV RWKHUZLVH VWDWHG x $GDSWLQJ WKH DXWRSLORW GLVFRQQHFW DOWLWXGH WR

SUHYDLOLQJ FRQGLWLRQV LQ RUGHU WR KDYH WLPH WR
)OLJKW FUHZV VKRXOG XVH WKH PRVW DSSURSULDWH VRXUFH HVWDEOLVK PDQXDO FRQWURO DQG WULP WKH DLUFUDIW
RI ZLQG LQIRUPDWLRQ GHSHQGLQJ RQ WKH IOLJKW SKDVH EHIRUH WKH DOLJQGHFUDE SKDVH DQG IODUH
DQG LQWHQGHG XVH

x %HLQJ DOHUW WR GHWHFW FKDQJHV LQ $7,6 DQG WRZHU
PHVVDJHV ZLQG GLUHFWLRQ VKLIW YHORFLW\ DQGRU
JXVW LQFUHDVH DQG
&URVVZLQG /DQGLQJ
x %HLQJ DZDUH RI VPDOOVFDOH ORFDO HIIHFWV
2SHUDWLRQV LQ FURVVZLQG FRQGLWLRQV UHTXLUH VWULFW DVVRFLDWHG ZLWK VWURQJ ZLQGV
DGKHUHQFH WR DSSOLFDEOH OLPLWDWLRQV RU PD[LPXP

8SGUDIWV DQG GRZQGUDIWV
UHFRPPHQGHG FURVVZLQG YDOXHV RSHUDWLRQDO
UHFRPPHQGDWLRQV DQG KDQGOLQJ WHFKQLTXHV 9RUWLFHV FUHDWHG E\ EXLOGLQJV IRUHVWV RU
SDUWLFXODUO\ ZKHQ RSHUDWLQJ RQ ZHW RU FRQWDPLQDWHG WHUUDLQ
UXQZD\V
$SSURDFKLQJ WKH IODUH SRLQW ZLWK ZLQJVOHYHO DQG D $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV
FUDE DQJOH DV UHTXLUHG IRU GULIW FRUUHFWLRQ WKUHH
IODUH WHFKQLTXHV DUH SRVVLEOH GHSHQGLQJ RQ UXQZD\ 7KH VFRSH VWUXFWXUH DQG VXJJHVWHG XVH RI WKH
FRQGLWLRQ FURVVZLQG FRPSRQHQW DQG FRPSDQ\ $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV DUH GHVFULEHG
623V LQ WKH FKDSWHU ,QWURGXFLQJ WKH %ULHILQJ 1RWHV
x $OLJQ WKH DLUFUDIW ZLWK WKH UXQZD\ FHQWHUOLQH
ZKLOH SUHYHQWLQJ GULIWLQJ VLGHZD\V E\ DSSO\LQJ
LQWRZLQG DLOHURQ DQG RSSRVLWH UXGGHU LH XVLQJ
FURVVFRQWUROV
x 3HUIRUP D SDUWLDO GHFUDE XVLQJ WKH FURVV

FRQWUROV WHFKQLTXH WR FRQWLQXH WUDFNLQJ WKH
UXQZD\ FHQWHUOLQH RU
x 0DLQWDLQ WKH FUDE DQJOH IRU GULIW FRUUHFWLRQ DQG

ZLQJVOHYHO XQWLO WKH PDLQ ODQGLQJ JHDU
WRXFKGRZQ

3DJH
$SSURDFKDQG/DQGLQJ5HGXFWLRQ7DVN)RUFH
&RQFOXVLRQVDQG5HFRPPHQGDWLRQV
,QWURGXFWLRQ 7KH IOLJKW VHJPHQW IURP WKH RXWHU PDUNHU WR WKH

FRPSOHWLRQ RI WKH ODQGLQJ UROO UHSUHVHQWV RQO\ RI
7KLV VXPPDU\ SUHVHQWV WKH FRQFOXVLRQV DQG WKH IOLJKW WLPH EXW RI KXOO ORVVHV
7KHVH VWDWLVWLFDO GDWD KDYH QRW VKRZQ DQ\ GRZQ
UHFRPPHQGDWLRQV RI WKH LQWHUQDWLRQDO $SSURDFK
WUHQG RYHU WKH SDVW \HDUV

DQG/DQGLQJ $FFLGHQW 5HGXFWLRQ $/$5 7DVN
)RUFH OHG E\ WKH )OLJKW 6DIHW\ )RXQGDWLRQ )6)
)LYH W\SHV RI HYHQWV DFFRXQW IRU RI DSSURDFK

%DFNJURXQG DQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV
x &),7 LQFOXGLQJ ODQGLQJ VKRUW RI UXQZD\
x /RVV RI FRQWURO
7KH )6) $/$5 7DVN )RUFH ZDV FUHDWHG LQ DV
DQRWKHU SKDVH RI WKH &RQWUROOHG )OLJKW ,QWR 7HUUDLQ
&),7 DFFLGHQW UHGXFWLRQ SURJUDP ODXQFKHG LQ WKH
x 5XQZD\ RYHUUXQ
HDUO\ V
x 5XQZD\ H[FXUVLRQ DQG
x 8QVWDELOL]HG DSSURDFKHV
7KH )6) $/$5 7DVN )RUFH FROOHFWHG DQG DQDO\]HG
GDWD UHODWHG WR D VLJQLILFDQW VHW RI DSSURDFKDQG
ODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH UHVXOWLQJ LQ
FRQWUROOHGIOLJKWLQWRWHUUDLQ &),7 ,PSOHPHQWDWLRQ
7KH 7DVN )RUFH GHYHORSHG FRQFOXVLRQV DQG
UHFRPPHQGDWLRQV IRU SUDFWLFHV WKDW ZRXOG LPSURYH 7KH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI WKH $/$5
VDIHW\ LQ DSSURDFKDQGODQGLQJ LQ WKH IROORZLQJ 7DVN )RUFH QHHG WR EH WUDQVODWHG LQWR LQGXVWU\
GRPDLQV DFWLRQV WR HQVXUH WKHLU HIIHFWLYH LPSOHPHQWDWLRQ
x $LU 7UDIILF &RQWURO 7UDLQLQJ DQG 3URFHGXUHV 7KH )OLJKW 6DIHW\ )RXQGDWLRQ LV FRPPLWWHG WR D
x $LUSRUW )DFLOLWLHV VLJQLILFDQW DZDUHQHVV FDPSDLJQ WKDW ZLOO HQVXUH
DYDLODELOLW\ RI WKLV LQIRUPDWLRQ WR HYHU\RQH ZKR
x $LUFUDIW HTXLSPHQW DQG SDUWLFLSDWHV LQ DSSURDFKDQGODQGLQJ RSHUDWLRQV VR
x $LUFUDIW 2SHUDWLRQV DQG 7UDLQLQJ
WKDW DOO FDQ SOD\ D SDUW LQ LPSURYLQJ VDIHW\ ZLWKLQ
WKHLU VSKHUH RI LQIOXHQFH
$OO FRQFOXVLRQV DQG UHFRPPHQGDWLRQV ZHUH GDWD 7KH FRRSHUDWLRQ DQG FRQWULEXWLRQ RI DOO SOD\HUV LQ WKH
GULYHQ DQG VXSSRUWHG E\ IDFWXDO HYLGHQFH RI WKHLU JOREDO DYLDWLRQ V\VWHP DUH UHTXLUHG WR
UHOHYDQFH WR WKH UHGXFWLRQ RI DSSURDFKDQGODQGLQJ x (QKDQFH SDUWQHUVKLS DQG
LQFLGHQWV DQG DFFLGHQWV FRPPXQLFDWLRQ EHWZHHQ
FRRSHUDWLRQ
RSHUDWRUV
6WDWLVWLFDO 'DWD DLU WUDIILF FRQWURO VHUYLFHV
$SSURDFKDQGODQGLQJ DFFLGHQWV GHILQHG DV VWDWH RSHUDWLRQDO DXWKRULWLHV
DFFLGHQWV RFFXUULQJ GXULQJ WKH LQLWLDO DSSURDFK ILQDO VWDWH QDYLJDWLRQ DJHQFLHV
DSSURDFK DQG ODQGLQJ UHSUHVHQW DSSUR[LPDWHO\
RI WRWDO KXOO ORVVHV DQG RI IDWDOLWLHV VHUYLFHV SURYLGHUV
)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH ² &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV

3DJH
WUDLQLQJ RUJDQL]DWLRQV DQG x 2SHUDWRUV VKRXOG GHYHORS 623V UHJDUGLQJ WKH

PDQXIDFWXUHUV
XVH RI DXWRPDWLRQ GXULQJ WKH DSSURDFK DQG
ODQGLQJ SKDVHV DQG SURYLGH WUDLQLQJ DFFRUGLQJO\
x $FKLHYH D RI WKH $/$5 (UURUV LQ XVLQJ DQG PDQDJLQJ WKH DXWRPDWLF
(GXFDWLRQ DQG 7UDLQLQJ $LG $/$5 7RRO .LW IOLJKW V\VWHP DQGRU WKH ODFN RI DZDUHQHVV RI WKH
ZLGH GLVVHPLQDWLRQ
LQFOXGLQJ RSHUDWLQJ PRGHV DUH FDXVDO IDFWRUV LQ PRUH

$/$5 DZDUHQHVV YLGHR
WKDQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV
DQG
%ULHILQJ 1RWHV x 2SHUDWRUV VKRXOG GHILQH D FOHDU SROLF\ UHJDUGLQJ
6DIHW\ $OHUW %XOOHWLQV WKH UROH RI WKH SLORWLQFRPPDQG FRPPDQGHU LQ
FRPSOH[ DQG GHPDQGLQJ VLWXDWLRQV
5LVN $ZDUHQHVV 7RRO FKHFNOLVW
7UDLQLQJ VKRXOG DGGUHVV WKH SUDFWLFH RI
5LVN 5HGXFWLRQ 3ODQQLQJ *XLGH DQG WUDQVIHUULQJ IO\LQJ GXWLHV GXULQJ RSHUDWLRQDOO\
&),7 DZDUHQHVV SUHVHQWDWLRQ
FRPSOH[ VLWXDWLRQV
x )DFLOLWDWH DQ RI DOO )OLJKWFUHZ 'HFLVLRQ0DNLQJ
FRQFOXVLRQV DQG UHFRPPHQGDWLRQV

HDV\ DQG IDVW LPSOHPHQWDWLRQ
&RQFOXVLRQV
2SHUDWLRQV DQG 7UDLQLQJ 2YHUYLHZ

(VWDEOLVKLQJ DQG DGKHULQJ WR DGHTXDWH GHFLVLRQ
PDNLQJ SURFHVVHV LPSURYH DSSURDFK DQG ODQGLQJ
VDIHW\
6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V
&UHZ UHVRXUFH PDQDJHPHQW LVVXHV LQFOXGLQJ
&RQFOXVLRQV GHFLVLRQPDNLQJ XQGHU VWUHVV DUH REVHUYHG DV
(VWDEOLVKLQJ DQG DGKHULQJ WR DGHTXDWH VWDQGDUG FLUFXPVWDQWLDO IDFWRUV LQ PRUH WKDQ RI
RSHUDWLQJ SURFHGXUHV 623V LPSURYHV DSSURDFK DSSURDFKDQGODQGLQJ DFFLGHQWV
DQG ODQGLQJ VDIHW\
7KH RPLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ 5HFRPPHQGDWLRQV
UDQN x 2SHUDWRUV VKRXOG SURYLGH HGXFDWLRQ DQG WUDLQLQJ

x $V D FDXVDO IDFWRU DORQJ ZLWK RWKHU IDFWRUV LQ WKDW HQKDQFH IOLJKWFUHZ GHFLVLRQPDNLQJ DQG
RI IDWDO DSSURDFKDQGODQGLQJ HYHQWV DQG ULVN HUURU PDQDJHPHQW DQG
x $ IDFWRU WR VRPH GHJUHH LQ RI DOO x 2SHUDWRUV VKRXOG GHYHORS DQ HIIHFWLYH WDFWLFDO
DSSURDFKDQGODQGLQJ DFFLGHQWV GHFLVLRQPDNLQJ PRGHO IRU XVH LQ WLPHFULWLFDO
VLWXDWLRQV
5HFRPPHQGDWLRQV
3UHSDUHGQHVV WR *RDURXQG DQG &RPPLWPHQW
x 6WDWH VKRXOG PDQGDWH DQG RSHUDWRUV VKRXOG
GHYHORS DQG LPSOHPHQW 623V IRU DSSURDFKDQG
IRU 0LVVHG$SSURDFK
ODQGLQJ RSHUDWLRQV &RQFOXVLRQV
x 2SHUDWRUV VKRXOG GHYHORS 623V WKDW DOORZ WKHLU )DLOXUH WR UHFRJQL]H WKH QHHG IRU DQG WR H[HFXWH D
SUDFWLFDO DSSOLFDWLRQ LQ QRUPDO RSHUDWLQJ PLVVHG DSSURDFK ZKHQ DSSURSULDWH LV D PDMRU
HQYLURQPHQW FDXVH RI DSSURDFK DQG ODQGLQJ DFFLGHQWV
7KH LQYROYHPHQW RI IOLJKW FUHZV LV HVVHQWLDO LQ 0RUH WKDQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV
WKH GHYHORSPHQW DQG HYDOXDWLRQ RI 623V FRQWDLQHG HOHPHQWV ZKLFK VKRXOG KDYH EHHQ
2SHUDWRUV VKRXOG LPSOHPHQW URXWLQH DQG FULWLFDO UHFRJQL]HG E\ WKH FUHZ DV LPSURSHU DQG ZKLFK
x
HYDOXDWLRQ RI 623V WR GHWHUPLQH WKH QHHG IRU VKRXOG KDYH SURPSWHG D JRDURXQG
FKDQJH

3DJH
,W LV DOVR REVHUYHG WKDQ ZKHQ DQ XQVWDEOH DSSURDFK 5HFRPPHQGDWLRQV

ZDUUDQWV D JRDURXQG GHFLVLRQ OHVV WKDQ RI 2SHUDWRUV VKRXOG GHILQH WKH SDUDPHWHUV RI D
IOLJKWFUHZV DFWXDOO\ LQLWLDWH D JRDURXQG x
VWDELOL]HG DSSURDFK LQ WKHLU IOLJKW RSHUDWLRQV
PDQXDOV SROLF\ PDQXDO DQGRU LQ WKHLU DLUFUDIW
5HFRPPHQGDWLRQV RSHUDWLQJ PDQXDO $20 LQFOXGLQJ DW OHDVW WKH
x 2SHUDWRUV VKRXOG VSHFLI\ ZHOOGHILQHG JRDURXQG IROORZLQJ HOHPHQWV
JDWHV IRU DSSURDFK DQG ODQGLQJ RSHUDWLRQV ,QWHQGHG IOLJKW SDWK
3DUDPHWHUV VKRXOG LQFOXGH 6SHHG
9LVLELOLW\ PLQLPD UHTXLUHG IRU WKH DSSURDFK 3RZHU VHWWLQJ

DQG ODQGLQJ RSHUDWLRQ $WWLWXGH
$VVHVVPHQW DW WKH ILQDO DSSURDFK IL[ )$) RU 6LQN UDWH
RXWHU PDUNHU 20 RI FUHZ DQG DLUFUDIW &RQILJXUDWLRQ DQG
UHDGLQHVV IRU DSSURDFK DQG
&UHZ UHDGLQHVV
0LQLPXP DOWLWXGH DW ZKLFK WKH DLUFUDIW PXVW
EH VWDELOL]HG x $OO IOLJKWV VKRXOG EH VWDELOL]HG E\ IW P
KHLJKW DERYH DLUILHOG HOHYDWLRQ LQ LQVWUXPHQW
x 2SHUDWRUV VKRXOG GHYHORS DQG VXSSRUW PHWHRURORJLFDO FRQGLWLRQV ,0& DQG E\ IW
P DERYH DLUILHOG HOHYDWLRQ LQ YLVXDO
1REODPH
3ROLFLHV
*RDURXQG DQG 0LVVHG $SSURDFK
PHWHRURORJLFDO FRQGLWLRQV 90&
$ WUXH QREODPH JRDURXQG SROLF\ VKRXOG x 7KH DSSURDFK VKRXOG EH FRQVLGHUHG VWDELOL]HG
DOOHYLDWH WKH UHSRUWLQJ DQG MXVWLILFDWLRQ RQO\ LI
UHTXLUHPHQWV IROORZLQJ D JRDURXQG RU GLYHUVLRQ
DQG 7KH DLUFUDIW LV RQ WKH FRUUHFW IOLJKW SDWK
2QO\ VPDOO FKDQJHV LQ KHDGLQJ DQG SLWFK DUH
x 7UDLQLQJ DQG FRPSDQ\ SHUIRUPDQFH UHTXLUHG WR PDLQWDLQ WKDW SDWK
PDQDJHPHQW V\VWHPV VKRXOG UHLQIRUFH WKHVH
SROLFLHV 7KH DLUVSHHG LV
QRW PRUH WKDQ 9 $33 NW ,$6 DQG
)O\LQJ 6WDELOL]HG $SSURDFKHV
QRW OHVV WKDQ 9 $33 ± NW

&RQFOXVLRQV
1RWH
8QVWDELOL]HG DQG UXVKHG DSSURDFKHV FRQWULEXWH WR

DSSURDFK DQG ODQGLQJ DFFLGHQWV 7KH DERYH UHFRPPHQGDWLRQ
DGDSWHG WR UHIOHFW WKH $LUEXV 9

KDV EHHQ
$33 FRQFHSW
&RQWLQXLQJ DQ XQVWDELOL]HG DSSURDFK LV D FDXVDO 7KH DLUFUDIW LV LQ WKH SURSHU ODQGLQJ
IDFWRU LQ RI DOO DSSURDFKDQGODQGLQJ FRQILJXUDWLRQ
DFFLGHQWV
7KH VLQN UDWH LV QRW JUHDWHU WKDQ IWPQ
$SSUR[LPDWHO\ RI UXVKHG DQG XQVWDEOH
DSSURDFKHV LQYROYH DQ LQFRUUHFW PDQDJHPHQW RI WKH ,I DQ DSSURDFK UHTXLUHV D VLQN UDWH JUHDWHU
GHVFHQWDQGDSSURDFK SURILOH DQGRU HQHUJ\ OHYHO WKDQ IWPQ D VSHFLDO EULHILQJ LV
LH EHLQJ VORZ DQGRU ORZ EHLQJ IDVW DQGRU KLJK UHTXLUHG

3DJH
7KH SRZHU VHWWLQJ LV DSSURSULDWH IRU WKH 3LORW &RQWUROOHU &RPPXQLFDWLRQV
FRQILJXUDWLRQ DQG QRW EHORZ WKH PLQLPXP

SRZHU IRU DSSURDFK DV GHILQHG LQ WKH DLUFUDIW &RQFOXVLRQV
RSHUDWLQJ PDQXDO DV DSSOLFDEOH DQG ,PSURYLQJ FRPPXQLFDWLRQ DQG PXWXDO

$OO EULHILQJV DQG FKHFNOLVWV KDYH EHHQ XQGHUVWDQGLQJ EHWZHHQ DLU WUDIILF FRQWURO VHUYLFHV
SHUIRUPHG DQG DQG IOLJKW FUHZV RI HDFK RWKHU¶V RSHUDWLRQDO
HQYLURQPHQW ZLOO LPSURYH DSSURDFK DQG ODQGLQJ
x ,Q DGGLWLRQ /2&RQO\ DQG ,/6 DSSURDFKHV DUH VDIHW\
FRQVLGHUHG VWDELOL]HG LI WKH\ DOVR IXOILOO WKH ,QFRUUHFW RU LQDGHTXDWH
IROORZLQJ
x $7& LQVWUXFWLRQV
/2&RQO\ DSSURDFKHV PXVW EH IORZQ ZLWKLQ
RQH GRW RI WKH ORFDOL]HU x :HDWKHU RU WUDIILF LQIRUPDWLRQ DQGRU
&$7 , ,/6 DSSURDFKHV PXVW EH IORZQ ZLWKLQ x $GYLFHVHUYLFH LQ FDVH RI HPHUJHQF\
RQH GRW RI WKH JOLGH VORSH *6 DQG ORFDOL]HU DUH FDXVDO IDFWRUV LQ PRUH WKDQ RI DSSURDFK
/2& DQG DQGODQGLQJ DFFLGHQWV
&$7 ,, RU &$7 ,,, ,/6 DSSURDFKHV PXVW EH
IORZQ ZLWKLQ WKH JOLGH VORSH DQG ORFDOL]HU $SSUR[LPDWHO\ RI DOWLWXGH GHYLDWLRQV DUH WKH
H[FHVVLYH GHYLDWLRQ ZDUQLQJV UHVXOW RI D EUHDNGRZQ LQ WKH FRQWUROOHU SLORW
1RWH
FRPPXQLFDWLRQ ORRS
7KH DERYH UHFRPPHQGDWLRQ KDV EHHQ DGDSWHG
5HFRPPHQGDWLRQV
WR UHIOHFW WKH $LUEXV /2& DQG *6 H[FHVVLYH
GHYLDWLRQ ZDUQLQJV
$7& VHUYLFHV DQG RSHUDWRUV VKRXOG
x 'XULQJ YLVXDO DSSURDFKHV ZLQJV PXVW EH OHYHO x ,QWURGXFH MRLQW WUDLQLQJ WKDW LQYROYHV ERWK $7&
RQ ILQDO ZKHQ WKH DLUFUDIW UHDFKHV IW DERYH SHUVRQQHO DQG IOLJKW FUHZV WR
DLUILHOG HOHYDWLRQ 3URPRWH PXWXDO XQGHUVWDQGLQJ RI LVVXHV VXFK
x 'XULQJ FLUFOLQJ DSSURDFKHV ZLQJV PXVW EH OHYHO DV SURFHGXUHV LQVWUXFWLRQV RSHUDWLRQDO
RQ ILQDO ZKHQ WKH DLUFUDIW UHDFKHV IW DLUILHOG UHTXLUHPHQWV DQG OLPLWDWLRQV EHWZHHQ IOLJKW
HOHYDWLRQ GHFN DQG WKH $7& HQYLURQPHQW
x 8QLTXH DSSURDFKHV PD\ UHTXLUH D VSHFLDO ,PSURYH FRQWUROOHUV¶ NQRZOHGJH RI WKH
EULHILQJ FDSDELOLWLHV DGYDQFHG WHFKQRORJ\ IOLJKW GHFNV
x &RPSDQ\ SROLF\ SROLF\ PDQXDO RU 623V VKRXOG DQG
VWDWH WKDW D JRDURXQG LV UHTXLUHG LI WKH DLUFUDIW )RVWHU LPSURYHG FRPPXQLFDWLRQV DQG WDVN
EHFRPHV XQVWDELOL]HG GXULQJ WKH DSSURDFK PDQDJHPHQW E\ SLORWV DQG FRQWUROOHUV GXULQJ
x 7KH LPSOHPHQWDWLRQ RI FHUWLILHG FRQVWDQWDQJOH HPHUJHQF\ VLWXDWLRQV DQG
SURFHGXUHV IRU QRQSUHFLVLRQ DSSURDFKHV VKRXOG x (QVXUH WKDW FRQWUROOHUV DUH DZDUH RI WKH
EH H[SHGLWHG JOREDOO\ LPSRUWDQFH RI XQDPELJXRXV LQIRUPDWLRQ
)OLJKW FUHZV VKRXOG EH WUDLQHG RQ WKH SURSHU XVH H[FKDQJH SDUWLFXODUO\ GXULQJ LQIOLJKW
x
RI FRQVWDQWDQJOH VWDELOL]HG DSSURDFK HPHUJHQFLHV
SURFHGXUHV x ,PSOHPHQW SURFHGXUHV WKDW UHTXLUH LPPHGLDWH
)OLJKW FUHZV VKRXOG EH HGXFDWHG RQ WKH FODULILFDWLRQ RU YHULILFDWLRQ RI WUDQVPLVVLRQV IURP
x
DSSURDFK GHVLJQFULWHULD DQG PLQLPXP REVWDFOH IOLJKW FUHZV WKDW LQGLFDWH D SRVVLEOH HPHUJHQF\
FOHDUDQFH UHTXLUHPHQWV LH IRU HDFK VHJPHQW VLWXDWLRQ
RI WKH DSSURDFK DQG x ,PSOHPHQW SURFHGXUHV IRU $7& KDQGOLQJ RI
)OLJKWFUHZV VKRXOG ³WDNH WLPH WR PDNH WLPH´ DLUFUDIW LQ HPHUJHQF\ VLWXDWLRQV WR PLQLPL]H
x
ZKHQHYHU FRFNSLW VLWXDWLRQ EHFRPHV FRQIXVLQJ IOLJKW FUHZ GLVWUDFWLRQ
RU DPELJXRXV

3DJH
x ,Q FRRSHUDWLRQ ZLWK DLUSRUW DXWKRULWLHV DQG x 2SHUDWRUV VKRXOG GHYHORS DQG LPSOHPHQW D
UHVFXH VHUYLFHV LPSOHPHQW XQDPELJXRXV SROLF\ IRU WKH DSSURSULDWH XVH RI DXWRPDWLRQ
HPHUJHQF\ SURFHGXUHV DQG FRPPRQ QDYLJDWLRQ DQG DSSURDFK DLGV IRU WKH DSSURDFK
SKUDVHRORJ\ WR HOLPLQDWH FRQIXVLRQ DQG EHLQJ IORZQ
x 'HYHORS MRLQWO\ ZLWK DLUSRUW DXWKRULWLHV DQG ORFDO
UHVFXH VHUYLFHV HPHUJHQF\WUDLQLQJ SURJUDPV 8VH RI 5DGLR $OWLPHWHU IRU 7HUUDLQ $ZDUHQHVV
WKDW DUH FRQGXFWHG RQ D UHJXODU EDVLV
&RQFOXVLRQV
)OLJKW FUHZV VKRXOG 8VLQJ WKH UDGLR DOWLPHWHU 5$ DV DQ HIIHFWLYH WRRO

x 9HULI\ XQGHUVWDQGLQJ RI HDFK $7& KHOSV SUHYHQW DSSURDFK DQG ODQGLQJ DFFLGHQWV
FRPPXQLFDWLRQ DQG UHTXHVW FODULILFDWLRQ ZKHQ
QHFHVVDU\ DQG 5HFRPPHQGDWLRQV
x $FFXUDWHO\ UHSRUW WKH VWDWXV RI DEQRUPDO DQG

HPHUJHQF\ VLWXDWLRQV DQG WKH QHHG IRU x (GXFDWLRQ LV QHHGHG WR LPSURYH FUHZ
HPHUJHQF\ DVVLVWDQFH XVLQJ VWDQGDUG DZDUHQHVV RI UDGLR DOWLPHWHU RSHUDWLRQ DQG
SKUDVHRORJ\ EHQHILWV
x 2SHUDWRUV VKRXOG VWDWH WKDW WKH UDGLR DOWLPHWHU LV
WR EH XVHG GXULQJ DSSURDFK RSHUDWLRQV DQG
$SSURDFK +D]DUGV /RZ 9LVLELOLW\
,OOXVLRQV DQG &RQWDPLQDWHG 5XQZD\ 2SHUDWLRQV
9LVXDO
VSHFLI\ SURFHGXUHV IRU LWV XVH DQG
x 2SHUDWRUV VKRXOG ILW UDGLR DOWLPHWHUV DQG
DFWLYDWH ³6PDUW &DOORXWV´ DW IHHW
IHHW IHHW DW IHHW RU WKH DOWLWXGH VHW LQ
&RQFOXVLRQV
7KH ULVN RI DSSURDFK DQG ODQGLQJ DFFLGHQW LV KLJKHU WKH ³'+´ GHFLVLRQ KHLJKW ZLQGRZ DV ZHOO DV DW
LQ RSHUDWLRQV FRQGXFWHG LQ ORZ OLJKW DQGRU YLVLELOLW\ IW IW IW IW DQG IW DV UHTXLUHG IRU
RQ ZHW RU RWKHUZLVH FRQWDPLQDWHG UXQZD\V DQG ZLWK HQKDQFHG WHUUDLQ DZDUHQHVV
WKH SUHVHQFH RI RSWLFDO RU SK\VLRORJLFDO LOOXVLRQV
0RUH WKDQ RI &),7 DQG UXQZD\ )OLJKW 2SHUDWLRQV 4XDOLW\ $VVXUDQFH )24$
H[FXUVLRQRYHUUXQ HYHQWV RFFXU
x ,Q ORZ YLVLELOLW\
&RQFOXVLRQV
x ,Q KLOO\ RU PRXQWDLQRXV WHUUDLQ

&ROOHFWLRQ DQG DQDO\VLV RI LQIOLJKW SDUDPHWHUV
)24$ SURJUDPV LGHQWLI\ SHUIRUPDQFH WUHQGV WKDW
x 2Q FRQWDPLQDWHG UXQZD\ DQGRU FDQ EH XVHG WR LPSURYH DSSURDFK DQG ODQGLQJ
VDIHW\
x 8QGHU DGYHUVH ZLQG FRQGLWLRQV
7KH ODFN RI DFTXLVLWLRQ RU WKH ORVV RI YLVXDO

5HFRPPHQGDWLRQV
UHIHUHQFHV LV WKH PRVW FRPPRQ SULPDU\ FDXVDO x )24$ VKRXOG EH LPSOHPHQWHG ZRUOGZLGH LQ
IDFWRU LQ DSSURDFKDQGODQGLQJ DFFLGHQWV WDQGHP ZLWK LQIRUPDWLRQ VKDULQJ SDUWQHUVKLSV
VXFK DV WKH *OREDO $QDO\VLV DQG ,QIRUPDWLRQ
1HWZRUN *$,1 WKH %ULWLVK $LUZD\V ,QIRUPDWLRQ
5HFRPPHQGDWLRQV
6\VWHP %$6,6 DQG WKH $YLDWLRQ 6DIHW\ $FWLRQ
x )OLJKW FUHZV VKRXOG EH WUDLQHG LQ RSHUDWLRQV 3DUWQHUVKLS $6$3
LQYROYLQJ DGYHUVH FRQGLWLRQV LH FURVVZLQG x

UXQZD\ FRQWDPLQDWLRQ EHIRUH WKH\ DUH DVVLJQHG ([DPSOHV RI )24$ EHQHILWV VDIHW\
OLQH GXWLHV LPSURYHPHQWV DQG FRVW UHGXFWLRQ VKRXOG EH

SXEOLFL]HG ZLGHO\ DQG
x )OLJKW FUHZV VKRXOG PDNH RSHUDWLRQDO XVH RI D x

ULVNDVVHVVPHQW FKHFNOLVW WR LGHQWLI\ DSSURDFK $ SURFHVV VKRXOG EH GHYHORSHG WR EULQJ )24$
DQG ODQGLQJ KD]DUGV DQG LQIRUPDWLRQ VKDULQJ SDUWQHUVKLSV WR UHJLRQDO

DQG EXVLQHVV DYLDWLRQ
$SSURSULDWH SURFHGXUHV VKRXOG EH LPSOHPHQWHG

WR OHVVHQ WKHVH ULVNV DQG

3DJH
$YLDWLRQ ,QIRUPDWLRQ 6KDULQJ x &RPPXQLFDWLRQ 1DYLJDWLRQ 6XUYHLOODQFH

&16 HTXLSPHQW VXFK DV &RQWUROOHU3LORW 'DWD
&RQFOXVLRQV /LQN &RPPXQLFDWLRQ &3'/&
*OREDO VKDULQJ RI DYLDWLRQ LQIRUPDWLRQ GHFUHDVHV WKH

ULVN RI DSSURDFKDQGODQGLQJ DFFLGHQWV
5HIHUHQFH 'RFXPHQW
5HFRPPHQGDWLRQV
7KH IROORZLQJ 6SHFLDO )6) 5HSRUW SURYLGHV D
x 'HLGHQWLILFDWLRQ RI DYLDWLRQ LQIRUPDWLRQ GDWD FRQVROLGDWHG VRXUFH RI VWDWLVWLFDO GDWD GHILQLWLRQV
VRXUFHV VKRXOG EH D FDUGLQDO UXOH LQ )24$ DQG DQG IDFWV DERXW DSSURDFKDQGODQGLQJ DFFLGHQWV
LQIRUPDWLRQ VKDULQJ SURFHVVHV DQG LQFOXGLQJ WKRVH LQYROYLQJ &),7
x 3XEOLF DZDUHQHVV RI WKH LPSRUWDQFH RI

LQIRUPDWLRQ VKDULQJ PXVW EH KHLJKWHQHG WKURXJK )OLJKW 6DIHW\ )RXQGDWLRQ
D FRRUGLQDWHG HIIRUW
)OLJKW 6DIHW\ 'LJHVW
.LOOHUV LQ $YLDWLRQ
2SWLPXP 8VH RI &XUUHQW 7HFKQRORJ\(TXLSPHQW
)6) 7DVN )RUFH 3UHVHQWV )DFWV
$OWKRXJK WKH 7DVN )RUFH LVVXHG FRQFOXVLRQV DQG $ERXW $SSURDFKDQGODQGLQJ DQG
UHFRPPHQGDWLRQV IRU IXWXUH WHFKQRORJLFDO &RQWUROOHGIOLJKWLQWRWHUUDLQ $FFLGHQWV
GHYHORSPHQWV RSHUDWRUV VKRXOG FRQVLGHU WKH

LPPHGLDWH EHQHILW RI H[LVWLQJ WHFKQRORJ\ DQG 9ROXPH 1R ± 9ROXPH 1R
HTXLSPHQW VXFK DV 1RY'HF-DQ)HE
x 7HUUDLQ $ZDUHQHVV DQG :DUQLQJ 6\VWHP

7$:6 IRU EHWWHU WHUUDLQ DZDUHQHVV DQG HDUO\
ZDUQLQJ
x 4XLFN $FFHVV 5HFRUGHU 4$5 DQG XVH )OLJKW

2SHUDWLRQV 4XDOLW\ $VVXUDQFH )24$ WR GHWHFW
DQG FRUUHFW XQVDIH WUHQGV
x 5DGLR DOWLPHWHU ZLWK VPDUW FDOORXWV IRU

HQKDQFHG WHUUDLQ DZDUHQHVV
x 3UHFLVLRQ DSSURDFK JXLGDQFH ZKHQHYHU

DYDLODEOH DQG XVH RI 9$6,3$3, LQ VXSSRUW RI
YLVXDO VHJPHQW
x *36EDVHG ODWHUDO QDYLJDWLRQ DQG EDURPHWULF

YHUWLFDO QDYLJDWLRQ SHQGLQJ WKH DYDLODELOLW\ RI
*36 /DQGLQJ 6\VWHP >*/6@ DSSURDFKHV
WKURXJK WKH XVH RI *166 RU *36 /RFDO $UHD
$XJPHQWDWLRQ 6\VWHP /$$6
x 0HFKDQLFDO RU HOHFWURQLF FKHFNOLVWV WR LPSURYH

FKHFNOLVW FRPSOLDQFH SDUWLFXODUO\ LQ FDVH RI
GLVWUDFWLRQ RU LQWHUUXSWLRQ
x $SSURDFK DQG DLUSRUW IDPLOLDUL]DWLRQ SURJUDPV

EDVHG RQ
+LJKUHVROXWLRQ SDSHU PDWHULDO
9LGHR GLVSOD\ DQGRU
6LPXODWRU YLVXDO DQG

3DJH
,QWURGXFLQJWKH%ULHILQJ1RWHV
*HQHUDO 7R VXSSRUW WKLV VWUDWHJ\ HDFK %ULHILQJ 1RWH
x 3UHVHQWV WKH VXEMHFW LQ WKH &),7 DQGRU $/$5

7KH VHW RI $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV FRQWH[W XVLQJ VWDWLVWLFDO GDWD
KDV EHHQ GHYHORSHG E\ $LUEXV ,QGXVWULH LQ WKH IUDPH
RI WKH $SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ x (PSKDVL]HV WKH DSSOLFDEOH VWDQGDUGV DQG EHVW
$/$5 7DVN )RUFH OHG E\ WKH )OLJKW 6DIHW\ SUDFWLFHV HJ VWDQGDUG RSHUDWLQJ SURFHGXUHV
)RXQGDWLRQ )6) >623V@ VXSSOHPHQWDU\ WHFKQLTXHV RSHUDWLRQDO

UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV
7KH $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV SURYLGH

x /LVWV DQG GLVFXVVHV IDFWRUV WKDW PD\ FDXVH IOLJKW
EDFNJURXQG LQIRUPDWLRQ RSHUDWLRQDO
FUHZV WR GHYLDWH IURP DSSOLFDEOH VWDQGDUGV IRU
UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV IRU WKH
H\HRSHQLQJ SXUSRVHV
LPSOHPHQWDWLRQ RI WKH FRQFOXVLRQV DQG
UHFRPPHQGDWLRQV RI WKH IROORZLQJ LQWHUQDWLRQDO x 3URYLGHV RU VXJJHVWV FRPSDQ\ DFFLGHQW
$/$5 ZRUNLQJ JURXSV SUHYHQWLRQVWUDWHJLHV DQGRU SHUVRQDO OLQHVRI
GHIHQVH IRU SUHYHQWLRQ SXUSRVHV DQGRU IRU
x )6) $/$5 7DVN )RUFH DQG FRUUHFWLRQ SXUSRVHV
x (VWDEOLVKHV D VXPPDU\ RI RSHUDWLRQDO NH\ SRLQWV

x 86 &RPPHUFLDO $YLDWLRQ 6DIHW\ 7HDP &$67
DQG WUDLQLQJ NH\ SRLQWV
$/$5 -RLQW 6DIHW\ ,PSOHPHQWDWLRQ 7HDP -6,7
x 5HIHUV WR WKH DVVRFLDWHG RU UHODWHG %ULHILQJ
/HVVRQVOHDUQHG IURP RSHUDWLRQDO DQDO\VLV RI LQ 1RWHV DQG
VHUYLFH RFFXUUHQFHV DQG IURP WUDLQLQJ IHHGEDFN
x 5HIHUHQFHV UHODWHG ,&$2 86 )$5 DQG
KDYH EHHQ DOVR FRQVLGHUHG
(XURSHDQ -$5 UHJXODWRU\ GRFXPHQWV
$ JHQHULF YHUVLRQ RI WKH $SSURDFKDQG/DQGLQJ

%ULHILQJ 1RWHV LV SXEOLVKHG E\ WKH )6) IRU WKH 7KH SURSRVHG HGXFDWLRQ DQG WUDLQLQJ VWUDWHJ\ LV
EHQHILW RI DOO JOREDO UHJLRQDO DQG FRUSRUDWH YDOLG DW ERWK FRPSDQ\ DQG SHUVRQDO OHYHO IRU
RSHUDWRUV LQ WKH 9ROXPH 1R $XJ1RY
RI WKH )6) )OLJKW 6DIHW\ 'LJHVW
x 5LVN DZDUHQHVV H\HRSHQLQJ
x ([SRVXUH DVVHVVPHQW
$FFLGHQW3UHYHQWLRQ 6WUDWHJ\ x ,GHQWLILFDWLRQ RI UHODWHG SUHYHQWLRQ VWUDWHJLHV

DW FRPSDQ\ OHYHO DQG OLQHVRIGHIHQVH
DW FRPSDQ\ DQGRU SHUVRQDO OHYHOV
7KH $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV KDYH
EHHQ GHVLJQHG WR DOORZ DQ H\HRSHQLQJ DQG VHOI x $QDO\VLV RI IOLJKW GDWD OLQH FKHFNV DQG OLQH
FRUUHFWLQJ DFFLGHQWSUHYHQWLRQ VWUDWHJ\ DXGLWV DQG
x ,PSOHPHQWDWLRQ RI SUHYHQWLRQ VWUDWHJLHV DQGRU

FRUUHFWLYH DFWLRQV

3DJH
'HILQLQJ D 5HIHUHQFH $LUFUDIW +RZ WR 8VH DQG ,PSOHPHQW WKH %ULHILQJ

1RWHV "
7KH WHFKQLFDO FRQWHQWV RI WKH $SSURDFKDQG
/DQGLQJ %ULHILQJ 1RWHV UHIHU WR DQ DLUFUDIW GHILQHG WR 7KH $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV VKRXOG
UHIOHFW WKH GHVLJQ IHDWXUHV FRPPRQ WR PRVW $LUEXV EH XVHG E\ DLUOLQHV WR HQKDQFH WKH DZDUHQHVV RI
DLUFUDIW IDPLOLHV DSSURDFKDQGODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH
UHVXOWLQJ LQ &),7 DPRQJ IOLJKW FUHZV DQG FDELQ
7KLV UHIHUHQFH DLUFUDIW IHDWXUHV WKH IROORZLQJ FUHZV
HTXLSPHQW WR DOORZ GLVFXVVLQJ WKH UROH RI HDFK
V\VWHP GXULQJ WKH DSSURDFK DQG ODQGLQJ
0DQDJHPHQW SLORWV VKRXOG UHYLHZ FXVWRPL]H
x *ODVVFRFNSLW LQFOXGLQJ DQ HOHFWURQLF IOLJKW DV UHTXLUHG DQG LPSOHPHQW WKH $/$5
LQVWUXPHQW V\VWHP (),6 FRQVLVWLQJ RI D UHFRPPHQGDWLRQV JXLGHOLQHV DQG DZDUHQHVV
SULPDU\ IOLJKW GLVSOD\ 3)' DQG QDYLJDWLRQ LQIRUPDWLRQ LQ WKH IROORZLQJ GRPDLQV
GLVSOD\ 1'
x 2SHUDWLRQDO GRFXPHQWDWLRQ
x ,QWHJUDWHG DXWRSLORW $3 IOLJKW GLUHFWRU )'
6WDQGDUG RSHUDWLQJ SURFHGXUHV HJ WR
DXWRWKURWWOHDXWRWKUXVW $7+5 V\VWHPV
LQFRUSRUDWH $/$5FULWLFDO LWHPV DQG
x )OLJKW PDQDJHPHQW V\VWHP )06

3URFHGXUHV DQG WHFKQLTXHV 6XSSOHPHQWDU\
WHFKQLTXHV
x $XWRPDWLF JURXQGVSRLOHUV
x $XWREUDNH V\VWHP x 7UDLQLQJ
x 7KUXVW UHYHUVHUV
6LPXODWRU 7UDLQLQJ WR GHYHORS QHZ VFHQDULRV
IRU OLQH RULHQWHG IOLJKW WUDLQLQJ /2)7 RU
x 7ZR IOLJKWGHFN FUHZPHPEHUV VSHFLDO SXUSRVH RSHUDWLRQDO WUDLQLQJ 6327

DQGRU
x 2SHUDWLRQ XVLQJ $LUEXV ,QGXVWULHSXEOLVKHG RU
FRPSDQ\SUHSDUHG VWDQGDUG RSHUDWLQJ &UHZ UHVRXUFH PDQDJHPHQW &50 WUDLQLQJ
SURFHGXUHV 623V GHILQLQJ WKH IROORZLQJ WR GHYHORS QHZ WRSLFDO VXEMHFWV WR VXSSRUW
HOHPHQWV &50 GLVFXVVLRQV
2SHUDWLQJ SKLORVRSK\ x ,QIRUPDWLRQ
8VH RI DXWRPDWLRQ $LUOLQH EXOOHWLQV
7DVN VKDULQJ IRU SLORW IO\LQJ >3)@ DQG SLORW $LUOLQH¶V VDIHW\ PDJD]LQH DUWLFOHV
QRQIO\LQJ >31)@
&ODVVURRP OHFWXUHV XVLQJ %ULHILQJ 1RWHV
3) DQG 31) WDVNV IRU DOO SKDVHV RI JURXQG DQG DVVRFLDWHG 3UHVHQWDWLRQV DQGRU
DQG IOLJKW RSHUDWLRQV

6WDQGDORQH UHDGLQJ
%ULHILQJV
/LQH SLORWV VKRXOG UHYLHZ DQG FRPSDUH WKH

6WDQGDUG FDOOV DQG
UHFRPPHQGDWLRQV JXLGHOLQHV DQG DZDUHQHVV
LQIRUPDWLRQ ZLWK WKHLU FXUUHQW SUDFWLFHV DQG HQKDQFH
1RUPDO FKHFNOLVWV
WKHLU WHFKQLTXHV DQG DZDUHQHVV OHYHO DV UHTXLUHG

3DJH
2WKHU DFWRUV LQ WKH JOREDO DYLDWLRQ V\VWHP VXFK DV x $LUEXV &RFNSLW 3KLORVRSK\ DQG
x $LU WUDIILF FRQWURO VHUYLFHV x 3URFHHGLQJV RI
x 1DYLJDWLRQ VWDWH DJHQFLHV 3HUIRUPDQFH DQG 2SHUDWLRQV &RQIHUHQFHV
x 2SHUDWLRQDO DXWKRULWLHV +XPDQ )DFWRUV 6\PSRVLXPV DQG
x 6HUYLFH SURYLGHUV DQG 2SHUDWLRQDO /LDLVRQ 0HHWLQJV
x )OLJKW DFDGHPLHV
$YLDWLRQ 5HJXODWLRQV 5HTXLUHPHQWV

VKRXOG XVH WKH SURYLVLRQ RI WKH %ULHILQJ 1RWHV WR
HYDOXDWH WKHLU SRVVLEOH FRQWULEXWLRQ WR WKH UHGXFWLRQ x ,&$2 ± $QQH[ ± 2SHUDWLRQ RI $LUFUDIW 3DUW , ±
RI &),7 DQG $SSURDFKDQG/DQGLQJ DFFLGHQWV ,QWHUQDWLRQDO &RPPHUFLDO $LU 7UDQVSRUW ±
$HURSODQHV
6WDWLVWLFDO 'DWD x ,&$2 ± 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV

3$16236 'RF
6WDWLVWLFDO GDWD TXRWHG LQ WKH %ULHILQJ 1RWHV RULJLQDWH x (XURSHDQ -RLQW $YLDWLRQ 5HTXLUHPHQW ±
IURP YDULRXV LQGXVWU\ VRXUFHV -$5236 ± &RPPHUFLDO $LU 7UDQVSRUW
$HURSODQHV
7KH IROORZLQJ 6SHFLDO )6) 5HSRUW SURYLGHV D
FRQVROLGDWHG VRXUFH RI VWDWLVWLFDO GDWD GHILQLWLRQV

x 86 )$5 ± 3DUW ± $LU 7UDIILF DQG *HQHUDO
2SHUDWLQJ 5XOHV
DQG IDFWV DERXW DSSURDFKDQGODQGLQJ DFFLGHQWV
LQFOXGLQJ WKRVH LQYROYLQJ &),7 x 86 )$5 ± 3DUW ± 2SHUDWLQJ 5HTXLUHPHQWV
'RPHVWLF )ODJ DQG 6XSSOHPHQWDO 2SHUDWLRQV
)OLJKW 6DIHW\ )RXQGDWLRQ DQG
)OLJKW 6DIHW\ 'LJHVW x 86 )$$ ± $HURQDXWLFDO ,QIRUPDWLRQ 0DQXDO

$,0 ± %DVLF )OLJKW ,QIRUPDWLRQ DQG $7&
.LOOHUV LQ $YLDWLRQ
3URFHGXUHV
)6) 7DVN )RUFH 3UHVHQWV )DFWV
$ERXW $SSURDFKDQGODQGLQJ DQG

$LUOLQHV¶ $LUFUDIW 2SHUDWLQJ 0DQXDOV
&RQWUROOHGIOLJKWLQWRWHUUDLQ $FFLGHQWV
9ROXPH 1R ± 9ROXPH 1R x 6HYHUDO DLUOLQHV¶ DLUFUDIW RSHUDWLQJ PDQXDOV
1RY'HF-DQ)HE $20 KDYH EHHQ XVHG WR FRQILUP RSHUDWRUV¶
EHVW SUDFWLFHV IRU QRQW\SHUHODWHG RSHUDWLRQDO
PDWWHUV
5HIHUHQFH 'RFXPHQWV
7KH IROORZLQJ UHIHUHQFH GRFXPHQWV KDYH EHHQ XVHG 7KH IROORZLQJ UHIHUHQFHV DQG GDWD VRXUFHV KDYH
WR VXSSRUW DQG LOOXVWUDWH WKH DSSOLFDEOH VWDQGDUGV EHHQ XVHG WR GRFXPHQW DQG DQDO\]H WKH RSHUDWLRQDO
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ IDFWRUV DQG KXPDQ IDFWRUV LQYROYHG LQ DSSURDFK
JXLGHOLQHV DQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV
$LUEXV ,QGXVWULH RSHUDWLRQDO DQG WUDLQLQJ *RYHUQPHQW DJHQFLHV ZHE VLWHV
GRFXPHQWDWLRQ
x 1$6$ $656 KWWSDUVDUFQDVDJRY DQG
x )OLJKW &UHZ 2SHUDWLQJ 0DQXDOV )&20 KWWSKXPDQIDFWRUVDUFQDVDJRY
x 4XLFN 5HIHUHQFH +DQGERRNV 45+ x 86 )$$ KWWSZZZIDDJRY
x )OLJKW &UHZ 7UDLQLQJ 0DQXDOV )&70 x 86 176% KWWSZZZQWVEJRYDYLDWLRQ
x ,QVWUXFWRU 6XSSRUW *XLGHV x )UHQFK %($ KWWSZZZEHDIURUJ

3DJH
x 8. $$,% KWWSRSHQJRYXNDDLE DQG $FNQRZOHGJHPHQW

x $XVWUDOLDQ %$6, KWWSZZZEDVLJRYDX
7KH IROORZLQJ $LUEXV ,QGXVWULH FROOHDJXHV DQG
LQGXVWU\ SDUWQHUV KDYH FRQWULEXWHG WR WKLV EURFKXUH
$LUOLQHV¶ )OLJKW 6DIHW\ 0DJD]LQHV LQ UHYLHZLQJ WKH %ULHILQJ 1RWHV LQ WKHLU UHVSHFWLYH
ILHOGV RI H[SHUWLVH
x $LU &DQDGD
&DSW 1DJL $%6, )HUQDQGR $/2162 &DSW 0LFKHO
x $LU )UDQFH
%5$1'7 3KLOLSSH %85&,(5 &DSW 'DYH
x $LU ,QWHU &$5%$8*+ &DSW $ODVWDLU &5$,* &DSW 'DYLG

&855< &DSW %HUWUDQG 'H &2859,//( *X\
x $PHULFDQ $LUOLQHV ', 6$172 &DSW .ODXV )/$'( &DSW 'DQ
*851(< -DFN\ -2<( &DSW +DQV .5(002/(5
x %ULWLVK $LUZD\V
0DUN /$&$*1,1$ 5REHUW /,*1(( &DSW -RKQ
x &DWKD\ 3DFLILF $LUZD\V DQG /21* &DSW 'LFN 0F .,11(< &KULVWLDQ 0217(,/
&DSW +XJR 3(5(= 6XVDQ 5((' &DSW /DUU\
x 86 $LUZD\V
52&./,)) )2 'DQ 520(52 )2 'LGLHU
521&(5$< 5RJHU 52=(//( &DSW *HQH
,QFLGHQWV DQG DFFLGHQWV DQDO\VLV SXEOLFDWLRQV 52=(17+$/ &DSW 'LFN 6/$77(5 -HDQ -DFTXHV
63(<(5 &DSW 5DLQHU 67$5. &DSW &KULVWLDQ
x $YUDP *ROGVWHLQ ± )O\LQJ RXW RI GDQJHU $ 3LORW¶V 67,( &DSW 5REHUW 680:$/7 &DSW (WLHQQH
*XLGH WR 6DIHW\ $LUJXLGH 3XEOLFDWLRQV ,QF 7$512:6.,
86$ DQG
x 0DFDUWKXU -RE ± $LU 'LVDVWHU 9ROXPHV

9ROXPH DQG 9ROXPH $HURVSDFH
3XEOLFDWLRQV 3W\ /WG $XVWUDOLD
)HDWXUH DUWLFOHV IURP WKH IROORZLQJ SXEOLFDWLRQV
x $LU 7UDQVSRUW :RUOG
x $23$ 3LORW
x $YLDWLRQ :HHN DQG 6SDFH 7HFKQRORJ\
x )OLJKW ,QWHUQDWLRQDO
x )6) )OLJKW 6DIHW\ 'LJHVW
x )6) $FFLGHQW 3UHYHQWLRQ %XOOHWLQV DQG
x 3URIHVVLRQDO 3LORW

3DJH
$SSURDFKDQGODQGLQJ%ULHILQJ1RWHV
*ORVVDU\RI7HUPVDQG$EEUHYLDWLRQV
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
$7+5 $XWRWKURWWOH RU $XWRWKUXVW V\VWHP
$$/ $ERYH $LUSRUW /HYHO
$& 86 )$$ $GYLVRU\ &LUFXODU
$&$6 $LUERUQH &ROOLVLRQ $YRLGDQFH 6\VWHP VHH DOVR 7&$6
$&3 $XGLR &RQWURO 3DQHO VHH DOVR '&'8
$'& $LU 'DWD &RPSXWHU
$)( $ERYH )LHOG (OHYDWLRQ
$)/ $ERYH )LHOG /HYHO HJ IW KHLJKW $)/
$)0 $LUSODQH )OLJKW 0DQXDO DSSURYHG E\ FHUWLILFDWLRQ DXWKRULWLHV
$)6 $XWRPDWLF )OLJKW 6\VWHP WKLV LQFOXGHV WKH IOLJKW GLUHFWRU )' WKH DXWRSLORW $3
WKH DXWRWKURWWOHDXWRWKUXVW V\VWHP $7+5 DQG WKH IOLJKW PDQDJHPHQW V\VWHP )06
$*/ $ERYH *URXQG /HYHO HJ IW KHLJKW $*/ LQGLFDWHG E\ WKH UDGLR DOWLPHWHU RU
FRPSXWHG E\ VXEWUDFWLQJ WKH WHUUDLQ HOHYDWLRQ IURP WKH DOWLWXGH DERYH 06/
$,0 86 )$$ $HURQDXWLFDO ,QIRUPDWLRQ 0DQXDO
SUHYLRXVO\ FDOOHG $LUPDQ ,QIRUPDWLRQ 0DQXDO
*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
$,3 $HURQDXWLFDO ,QIRUPDWLRQ 3XEOLFDWLRQV
SXEOLVKHG E\ ,&$2 PHPEHU VWDWHV
$/$ $SSURDFKDQG/DQGLQJ $FFLGHQW
$/$5 $SSURDFKDQG/DQGLQJ $FFLGHQW 5HGXFWLRQ
$/6 $LUSRUW /LJKWLQJ 6\VWHP
$/71 $OWHUQDWH
$0& $FFHSWDEOH 0HDQV RI &RPSOLDQFH IRU FRPSOLDQFH ZLWK -$5236
$20 $LUFUDIW 2SHUDWLQJ 0DQXDO HVWDEOLVKHG E\ RSHUDWRU
$3 $XWR 3LORW
$33 $SSURDFK FRQWURO IUHTXHQF\
$SSURDFK *DWH $ SRLQW LQ VSDFH ZLWK D GHILQHG FRQILJXUDWLRQ DQG HQHUJ\ VWDWH
VHH DOVR 6WDELOL]DWLRQ +HLJKW DQG 1H[W 7DUJHW
$57&& $LU 5RXWH 7UDIILF &RQWURO &HQWHU XVXDOO\ UHIHUUHG WR DV &HQWHU
$6$3 $YLDWLRQ 6DIHW\ $FWLRQ 3DUWQHUVKLS
$7& $LU 7UDIILF &RQWURO
$7,6 $XWRPDWLF 7HUPLQDO ,QIRUPDWLRQ 6HUYLFH
$70 $LU 7UDIILF 0DQDJHPHQW
RQH RI WKH WZR FRPSRQHQWV RI )$16 VHH DOVR )$16 DQG &16
%$6,6 %ULWLVK $LUZD\V ,QIRUPDWLRQ 6\VWHP
%5* %HDULQJ HJ EHDULQJ WR D ZD\SRLQW RU QDYDLG

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
&$3 8. &LYLO $YLDWLRQ 3XEOLFDWLRQ
&$37 &DSWDLQ VHH DOVR 3,&
&$67 &RPPHUFLDO $YLDWLRQ 6DIHW\ 7HDP
LQWHUQDWLRQDO LQGXVWU\ WDVN IRUFH OHG E\ 86 )$$
&DXVDO )DFWRU $ FDXVDO IDFWRU LV DQ HYHQW RU LWHP MXGJHG WR EH GLUHFWO\ LQVWUXPHQWDO LQ WKH FDXVDO
FKDLQ RI HYHQWV OHDGLQJ WR DQ DFFLGHQW VRXUFH )OLJKW VDIHW\ )RXQGDWLRQ
&$:6 &ROOLVLRQ $YRLGDQFH :DUQLQJ 6\VWHP VHH 7&$6
&'8 &RQWURO DQG 'LVSOD\ 8QLW VHH DOVR 0&'8
&),7 &RQWUROOHG )OLJKW ,QWR 7HUUDLQ
&KHFNOLVW 6HH DOVR 45+
&LUFXPVWDQWLDO $ FLUFXPVWDQWLDO IDFWRU LV DQ HYHQW RU DQ LWHP WKDW ZDV MXGJHG QRW WR EH GLUHFWO\ LQ
)DFWRU WKH FDXVDO FKDLQ RI HYHQWV > OHDGLQJ WR DQ DFFLGHQW @ EXW FRXOG KDYH FRQWULEXWHG WR
WKH DFFLGHQW VRXUFH )OLJKW 6DIHW\ )RXQGDWLRQ
&16 &RPPXQLFDWLRQ 1DYLJDWLRQ DQG 6XUYHLOODQFH
RQH RI WKH WZR FRPSRQHQWV RI )$16 VHH DOVR )$16 DQG $70
&21) &RQILJXUDWLRQ HJ VODWV IODSV UROO VSRLOHUV JURXQG VSRLOHUV
&255 &RUUHFWLRQ HJ ZLQG RU FRQILJXUDWLRQ FRUUHFWLRQ RQ ILQDO DSSURDFK VSHHG
&3'/& &RQWUROOHU 3LORW 'DWD /LQN &RPPXQLFDWLRQV
&50 &UHZ 5HVRXUFH 0DQDJHPHQW
'$+ 'HFLVLRQ $OWLWXGH +HLJKW
'&'8 'DWD &RPPXQLFDWLRQV 'LVSOD\ 8QLW

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
''* 'LVSDWFK 'HYLDWLRQ *XLGH VHH DOVR 00(/ DQG 0(/
',5 72 'LUHFW URXWH WR > D ZD\SRLQW @
',67 'LVWDQFH
'0( 'LVWDQFH 0HDVXULQJ (TXLSPHQW
'1$ )UHQFK 'LUHFWLRQ GH OD 1DYLJDWLRQ $HULHQQH
(&$0 (OHFWURQLF &HQWUDOL]HG $LUFUDIW 0RQLWRU
(),6 (OHFWURQLF )OLJKW ,QVWUXPHQWV 6\VWHP
(*3:6 (QKDQFHG *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP VHH DOVR 7$:6
(*7 ([KDXVW *DV 7HPSHUDWXUH
(7236 ([WHQGHG 7ZLQV 2SHUDWLRQV
)2 )LUVW 2IILFHU
)$$ 86 )HGHUDO $YLDWLRQ $GPLQLVWUDWLRQ
)$) )LQDO $SSURDFK )L[
)$16 )XWXUH $LU 1DYLJDWLRQ 6\VWHP VHH DOVR &16 DQG $70
)$5 86 )HGHUDO $YLDWLRQ 5HJXODWLRQV
)%6 )L[HG %DVH 6LPXODWRU
)&20 )OLJKW &UHZ 2SHUDWLQJ 0DQXDO HVWDEOLVKHG E\ $LUEXV ,QGXVWULH
)&8 )OLJKW &RQWURO 8QLW LH $3)' LQWHUIDFH
)' )OLJKW 'LUHFWRU

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
)') )LQDO 'HVFHQW )L[
))&& )RUZDUG)DFLQJ&UHZ &RFNSLW
))6 )XOO )OLJKW 6LPXODWRU
),5 )OLJKW ,QIRUPDWLRQ 5HJLRQ
)/ )OLJKW /HYHO
)0*6 )OLJKW 0DQDJHPHQW DQG *XLGDQFH 6\VWHP
)0$ )OLJKW 0RGHV $QQXQFLDWRU
)0*(6 )OLJKW 0DQDJHPHQW *XLGDQFH DQG >IOLJKW@ (QYHORS >SURWHFWLRQ@ 6\VWHP
)06 )OLJKW 0DQDJHPHQW 6\VWHP
)24$ )OLJKW 2SHUDWLRQV 4XDOLW\ $VVXUDQFH
)6) )OLJKW 6DIHW\ )RXQGDWLRQ
IW )HHW
*$ *R $URXQG
*$,1 *OREDO $QDO\VLV DQG ,QIRUPDWLRQ 1HWZRUN
*&$6 *URXQG &ROOLVLRQ $YRLGDQFH 6\VWHP
*1' *URXQG FRQWURO IUHTXHQF\
*166 *OREDO 1DYLJDWLRQ 6DWHOOLWH 6\VWHP
*36 *OREDO 3RVLWLRQLQJ 6\VWHP
*3:6 *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
*6 *OLGH 6ORSH
*: *URVV :HLJKW
+$7 +HLJKW $ERYH 7RXFKGRZQ
+) +LJK )UHTXHQF\
+,5/ +LJK ,QWHQVLW\ 5XQZD\ /LJKWLQJ
+6, +RUL]RQWDO 6LWXDWLRQ ,QGLFDWRU
K3D +HFWRSDVFDOV
,$) ,QLWLDO $SSURDFK )L[
,$3 ,QVWUXPHQW $SSURDFK 3URFHGXUH
,$6 ,QGLFDWHG $LU 6SHHG
,&$2 ,QWHUQDWLRQDO &LYLO $YLDWLRQ 2UJDQL]DWLRQ
,(0 ,QWHUSUHWDWLYH DQG ([SODQDWRU\ 0DWHULDO IRU FRPSOLDQFH ZLWK -$5236
,) ,QWHUPHGLDWH )L[
,)5 ,QVWUXPHQW )O\LQJ 5XOHV
,/6 ,QVWUXPHQW /DQGLQJ 6\VWHP VHH DOVR *6 DQG /2&
,/6'0( ,QVWUXPHQW /DQGLQJ 6\VWHP ZLWK FROORFDWHG 'LVWDQFH 0HDVXULQJ (TXLSPHQW
,0& ,QVWUXPHQW 0HWHRURORJLFDO &RQGLWLRQV
LQ+J ,QFKHV RI 0HUFXU\ XQLW IRU SUHVVXUH PHDVXUHPHQW
,1)2 ,QIRUPDWLRQ VHUYLFH IUHTXHQF\

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
,2( ,QLWLDO 2SHUDWLQJ ([SHULHQFH /LQH 7UDLQLQJ
,56 ,QHUWLDO 5HIHUHQFH 6\VWHP
-$$ (XURSHDQ -RLQW $YLDWLRQ $XWKRULW\
-$5 (XURSHDQ -RLQW $YLDWLRQ 5HJXODWLRQV
-$5$:2 -$5 $OO :HDWKHU 2SHUDWLRQV UHTXLUHPHQWV
-$5236 -$5 2SHUDWLRQV UHTXLUHPHQWV
-6$7 86 &$67 -RLQW 6DIHW\ $QDO\VLV 7HDP
-6,7 86 &$67 -RLQW 6DIHW\ ,PSOHPHQWDWLRQ 7HDP
-66, (XURSHDQ -RLQW 6DIHW\ 6WUDWHJLHV DQG ,QLWLDWLYHV
NW .QRWV
/$$6 *36 /RFDO $UHD >DFFXUDF\@ $XJPHQWDWLRQ 6\VWHP
/$+6+2 /DQG DQG +ROG 6KRUW RSHUDWLRQ
/DWHUDO 1DYLJDWLRQ )06 PDQDJHG ODWHUDO QDYLJDWLRQ LH 1$9 PRGH
/'$ /2&W\SH 'LUHFWLRQDO $LG
//:$6 /RZ /HYHO :LQGVKHDU $OHUW 6\VWHP
/2& /RFDOL]HU
/2& %&. &56 /RFDOL]HU EDFN FRXUVH
/2)7 /LQH 2ULHQWHG )OLJKW >VLPXODWRU @ 7UDLQLQJ
P 0HWHUV

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
0$3 0LVVHG $SSURDFK 3RLQW
0&'8 0XOWLSXUSRVH &RQWURO DQG 'LVSOD\ 8QLW VHH DOVR &'8
0'$+ 0LQLPXP 'HVFHQW $OWLWXGH +HLJKW
0($ 0LQLPXP (QURXWH $OWLWXGH
0(/ 0LQLPXP (TXLSPHQW /LVW RSHUDWRU

FXVWRPL]HG YHUVLRQ RI 00(/
0(7$5 0HWHRURORJLFDO $LUSRUW >REVHUYDWLRQ@ 5HSRUW
00(/ 0DVWHU 0LQLPXP (TXLSPHQW /LVW DSSURYHG E\ RSHUDWLRQDO DXWKRULW\
0RGH 7\SH RI JXLGDQFH XVHG WR JXLGH WKH DLUFUDIW WRZDUGV D WDUJHW RU VHW RI WDUJHWV
RU DORQJ D YHUWLFDO IOLJKW SDWK DQGRU ODWHUDO IOLJKW SDWK
6HOHFWHG PRGHV UHIHUV WR WKH PRGHV DUPHG RU HQJDJHG E\ WKH SLORW RQ WKH )&8
0DQDJHG PRGHV UHIHUV WR )06 YHUWLFDO QDYLJDWLRQ DQG ODWHUDO QDYLJDWLRQ
06$ 0LQLPXP 6DIH $OWLWXGH RU 0LQLPXP 6HFWRU $OWLWXGH
06$: 0LQLPXP 6DIH $OWLWXGH :DUQLQJ SURYLGHG E\ $7&
06/ 0HDQ 6HD /HYHO HJ IW DOWLWXGH DERYH 06/ LQGLFDWHG E\ WKH EDURPHWULF
DOWLPHWHU ZKHQ VHW WR 41+
1$76 8. 1DWLRQDO $LU 7UDIILF 6HUYLFHV
1DYDLG 1DYLJDWLRQ $LG HJ 1'% 925 925'0( /2& ,/6
1' 1DYLJDWLRQ 'LVSOD\
1'% 1RQ 'LUHFWLRQDO %HDFRQ

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
1H[W 7DUJHW $Q\ UHTXLUHG HOHPHQW RU FRPELQDWLRQ RI RQH RU PRUH RI WKH IROORZLQJ HOHPHQWV
$ SRVLWLRQ
$Q DOWLWXGH
$Q DLUFUDIW FRQILJXUDWLRQ
$ VSHHG
$ YHUWLFDO VSHHG DQGRU
$ SRZHU VHWWLQJ
1(;7 :37 7KH ZD\SRLQW ORFDWHG DIWHU WKH 72 :37
QP 1DXWLFDO PLOHV
127$0 12WLFH 7R $LU0HQ
2$7 2XWVLGH $LU 7HPSHUDWXUH
2&$+ 2EVWDFOH &OHDUDQFH $OWLWXGH +HLJKW
20 2XWHU 0DUNHU
3$ 3DVVHQJHU $GGUHVV V\VWHP
3$3, 3UHFLVLRQ $SSURDFK 3DWK ,QGLFDWRU
3) 3LORW )O\LQJ
3)' 3ULPDU\ )OLJKW 'LVSOD\
3,& 3LORW ,Q &RPPDQG
3,5(36 3LORW 5(3RUWV

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
31) 3LORW 1RW )O\LQJ
7KH 31) LV VRPHWLPHV UHIHUUHG WR DV WKH 3LORW 0RQLWRULQJ WR HQKDQFH KLVKHU UROH
LQ WHUPV RU PRQLWRULQJ FURVVFKHFN DQG EDFNXS
4$5 4XLFN $FFHVV 5HFRUGHU
4)( $FWXDO DWPRVSKHULF SUHVVXUH DW DLUSRUW HOHYDWLRQ
$OWLPHWHU VHWWLQJ UHTXLUHG WR UHDG D KHLJKW DERYH DLUSRUW HOHYDWLRQ
41+ $FWXDO DWPRVSKHULF SUHVVXUH DW VHD OHYHO EDVHG RQ DFWXDO DWPRVSKHULF SUHVVXUH DW
VWDWLRQ
$OWLPHWHU VHWWLQJ UHTXLUHG WR UHDG DQ DOWLWXGH DERYH PHDQ VHD OHYHO 06/
45+ 4XLFN 5HIHUHQFH +DQGERRN
5, 5DGLR ,QHUWLDO QDYLJDWLRQ
5$ 'HSHQGLQJ RQ FRQWH[W
5DGLR $OWLPHWHU RU
5HVROXWLRQ $GYLVRU\ VHH DOVR 7&$6
5$ '+ 5DGLR $OWLPHWHU 'HFLVLRQ +HLJKW
5DZ 'DWD 5DZ QDYLJDWLRQ GDWD EHDULQJ DQGRU GLVWDQFH IURP DLUFUDIW WR WKH WXQHG QDYDLG
5(,/ 5XQZD\ (QG ,GHQWLILFDWLRQ /LJKWV
5HYHUVLRQ $ PRGH UHYHUVLRQ LV D PDQXDO RU DXWRPDWLF FKDQJHRYHU IURP RQH $3 PRGH WR

DQRWKHU PRGH XVXDOO\ D ORZHU OHYHO RI DXWRPDWLRQ UHVXOWLQJ IURP
D SLORW DFWLRQ HJ WKH VHOHFWLRQ RI D ORZHU OHYHO RI DXWRPDWLRQ RU WKH

GLVHQJDJHPHQW RI D PRGH IRU PDQXDO UHYHUVLRQ WR WKH $3 EDVLF PRGH
D V\VWHP EXLOWLQ FRQGLWLRQ HJ D JXLGDQFH OLPLW RU DQ DFWLYH IOLJKW HQYHORSH

SURWHFWLRQ RU
D IDLOXUH RU WHPSRUDU\ ORVV RI WKH HQJDJHG PRGH

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
50, 5DGLR 0DJQHWLF ,QGLFDWRU
51$9 D5HD 1$9LJDWLRQ LH ODWHUDO QDYLJDWLRQ EDVHG RQ GHILQHG ZD\SRLQWV
513 5HTXLUHG 1DYLJDWLRQ >DFFXUDF\@ 3HUIRUPDQFH
595 5XQZD\ 9LVXDO 5DQJH
5960 5HGXFHG 9HUWLFDO 6HSDUDWLRQ 0LQLPD
6$7 6WDWLF $LU 7HPSHUDWXUH
6') 6LPSOLILHG 'LUHFWLRQDO )DFLOLW\
6,' 6WDQGDUG ,QVWUXPHQWV 'HSDUWXUH
623V 6WDQGDUG 2SHUDWLQJ 3URFHGXUHV
6WDELOL]DWLRQ +HLJKW 7KH KHLJKW DERYH DLUILHOG HOHYDWLRQ RU WKH KHLJKW DERYH WRXFKGRZQ +$7 DW ZKLFK
WKH DLUFUDIW VKRXOG EH VWDELOL]HG IRU WKH DSSURDFK WR EH FRQWLQXHG
7KH VWDELOL]DWLRQ KHLJKW VKRXOG EH
IW LQ ,0& DQG
IW LQ 90&
67$5 6WDQGDUG 7HUPLQDO $5ULYDO
67' 6WDQGDUG DOWLPHWHU VHWWLQJ LH K3D RU LQKJ
7$ 7UDIILF $GYLVRU\ VHH DOVR 7&$6
7DUJHW $ JXLGDQFH WDUJHW HJ D VSHHG KHDGLQJ DOWLWXGH YHUWLFDO VSHHG IOLJKW SDWK DQJOH
WUDFN FRXUVH HWF VHOHFWHG E\ WKH SLORW RQ WKH DSSURSULDWH SDQHO )&8 )06 &'8 RU
NH\ERDUG
7$6 7UXH $LU 6SHHG

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
7$:6 7HUUDLQ $ZDUHQHVV DQG :DUQLQJ 6\VWHP
7$:6 LV WKH WHUP XVHG E\ WKH (XURSHDQ -$$ DQG WKH 86 )$$ WR GHVFULEH
HTXLSPHQW PHHWLQJ ,&$2 VWDQGDUGV DQG UHFRPPHQGDWLRQV IRU JURXQGSUR[LPLW\

ZDUQLQJ V\VWHP *3:6 HTXLSPHQW WKDW SURYLGHV SUHGLFWLYH WHUUDLQKD]DUG ZDUQLQJV
(QKDQFHG*3:6 (*3:6 DQG JURXQG FROOLVLRQ DYRLGDQFH V\VWHP $&$6 DUH

RWKHU WHUPV XVHG WR GHVFULEH 7$:6 HTXLSPHQW
7&$6 7UDIILF &ROOLVLRQ $YRLGDQFH 6\VWHP VHH DOVR $&$6
7':5 7HUPLQDO 'RSSOHU :HDWKHU 5DGDU
:HDWKHU UDGDU FDSDEOH RI GHWHFWLQJ DUHDV RI ZLQG VKHDU DFWLYLW\
7'= 7RXFK 'RZQ =RQH
7'=( 7RXFK 'RZQ =RQH (OHYDWLRQ
7(536 86 6WDQGDUG IRU 7HUPLQDO ,QVWUXPHQW $SSURDFK 3URFHGXUHV )$5 3DUW
72 :37 :D\SRLQW RI WKH )3/1 IOLJKW SODQ FRQVLGHUHG E\ WKH )06 IRU LPPHGLDWH ODWHUDO
QDYLJDWLRQ JXLGDQFH LQ FDVH RI LQFRUUHFW IOLJKW SODQ VHTXHQFLQJ WKH 72 :37 PD\
KDSSHQ WR EH EHKLQG WKH DLUFUDIW
72' 7RS 2I 'HVFHQW
7UDQVLWLRQ $ PRGH WUDQVLWLRQ LV D PDQXDO RU DXWRPDWLF FKDQJHRYHU IURP RQH $3 PRGH WR

DQRWKHU PRGH UHVXOWLQJ IURP
D SLORW DFWLRQ HJ WKH VHOHFWLRQ RI D QHZ PRGH RQ WKH )&8 DV DSSURSULDWH IRU
WKH WDVN RU IROORZLQJ DQ $7& LQVWUXFWLRQ RU
DQ DXWRPDWLF PRGH VHTXHQFLQJ UHVXOWLQJ IURP D SULRU PRGH VHOHFWLRQ LQYROYLQJ

VHYHUDO PRGH FKDQJHV LQ VHTXHQFH HJ DOWLWXGH FDSWXUH FKDQJHRYHU WR DOWLWXGH
KROG RU VHOHFWHG KHDGLQJ FKDQJHRYHU WR ORFDOL]HU FDSWXUH WKHQ WR ORFDOL]HU WUDFNLQJ
9 $33 )LQDO $SSURDFK 6SHHG
9 0&/ 0LQLPXP FRQWURO VSHHG LQ ODQGLQJ FRQILJXUDWLRQ ZLWK WKH FULWLFDO HQJLQH LQRSHUDWLYH

3DJH
7HUP
RU 'HILQLWLRQ
$EEUHYLDWLRQ
9 5() 5HIHUHQFH DSSURDFK VSHHG DOVR UHIHUUHG WR DV WKUHVKROG UHIHUHQFH VSHHG RU WDUJHW
WKUHVKROG VSHHG
9 VWDOO 6WDOOLQJ VSHHG LQ D VSHFLILHG FRQILJXUDWLRQ
96 9HUWLFDO VSHHG RU $3 9HUWLFDO 6SHHG PRGH
9$6, 9LVXDO $SSURDFK ,QGLFDWRU
9'3 9LVXDO 'HVFHQW 'HFLVLRQ 3RLQW
9HUWLFDO 1DYLJDWLRQ )06PDQDJHG YHUWLFDO QDYLJDWLRQ
9)5 9LVXDO )O\LQJ 5XOHV
9+) 9HU\ +LJK )UHTXHQF\
90& 9LVXDO 0HWHRURORJLFDO &RQGLWLRQV
925 9+) 2PQL 5DQJH
925'0( &ROORFDWHG 925 DQG '0( QDYDLGV
:$$6 *36 :LGH $UHD >DFFXUDF\@ $XJPHQWDWLRQ 6\VWHP
:02 :RUOG 0HWHRURORJLFDO 2UJDQL]DWLRQ

3DJH
&KDSWHU
2SHUDWLQJ3KLORVRSK\623V
$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH
²2SHUDWLQJ3KLORVRSK\623V
,QWURGXFWLRQ 6WDWLVWLFDO 'DWD

6WULFW DGKHUHQFH WR VXLWDEOH VWDQGDUG RSHUDWLQJ RI
SURFHGXUHV 623V DQG QRUPDO FKHFNOLVWV LV DQ )DFWRU (YHQWV
HIIHFWLYH PHWKRG WR SUHYHQW DSSURDFKDQGODQGLQJ
DFFLGHQWV LQFOXGLQJ WKRVH LQYROYLQJ &),7 2PLVVLRQ RI DFWLRQ RU
:LWKRXW VWULFW DGKHUHQFH WR 623V WKH LQDSSURSULDWH DFWLRQ
LPSOHPHQWDWLRQ RI JRRG FUHZ UHVRXUFHV
PDQDJHPHQW &50 SUDFWLFHV LV QRW SRVVLEOH 1RQDGKHUHQFH WR FULWHULD IRU
VWDELOL]HG DSSURDFK
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI WKH
IROORZLQJ DVSHFWV ,QDGHTXDWH FUHZ FRRUGLQDWLRQ
FURVVFKHFN DQG EDFNXS
x (VWDEOLVKPHQW DQG XVH RI 623V
,QVXIILFLHQW KRUL]RQWDO RU YHUWLFDO
x 7UDLQLQJ DVSHFWV DQG VLWXDWLRQDO DZDUHQHVV
x )DFWRUV DQG FRQGLWLRQV WKDW PD\ DIIHFW WKH ,QDGHTXDWH RU LQVXIILFLHQW
FRPSOLDQFH ZLWK SXEOLVKHG UXOHV DQG XQGHUVWDQGLQJ RI SUHYDLOLQJ
SURFHGXUHV FRQGLWLRQV
6ORZ RU GHOD\HG DFWLRQ
'HOLEHUDWH QRQDGKHUHQFH WR
SURFHGXUHV
,QFRUUHFW RU LQFRPSOHWH SLORW
FRQWUROOHU FRPPXQLFDWLRQV
,QWHUDFWLRQ ZLWK DXWRPDWLRQ
$EVHQFH RI JRDURXQG ZKHQ
UHTXLUHG
7DEOH
&DXVDO )DFWRUV UHODWHG WR 623V
LQ $SSURDFKDQG/DQGLQJ $FFLGHQWV
6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

3DJH
$LUEXV ,QGXVWULH¶ 623V /LQH SLORWV DQG FDELQ FUHZPHPEHUV VKRXOG EH

LQYROYHG DORQJ ZLWK WKH IOLJKW VWDQGDUGV WHDP LQ WKH
6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V SXEOLVKHG GHYHORSPHQW DQG UHYLVLRQ SURFHVV RI FRPSDQ\
E\ $LUEXV ,QGXVWULH DUH GHVLJQHG WR DFKLHYH WKH 623V WR
IROORZLQJ REMHFWLYHV
x 3URPRWH FULWLFDO DQG FRQVWUXFWLYH IHHGEDFN
x 5HIOHFW WKH $LUEXV ,QGXVWULH¶ FRFNSLW GHVLJQ DQG
SKLORVRSK\ DQG RSHUDWLQJ SKLORVRSK\
x (QVXUH WKDW UXOHV DQG SURFHGXUHV DV ZHOO DV
x 3URPRWH RSWLPXP XVH RI DLUFUDIWW\SH GHVLJQ
UHDVRQV IRU WKHLU DGRSWLRQ DUH IXOO\ XQGHUVWRRG
IHDWXUHV DQG
E\ HQG XVHUV
x $SSO\ WR D EURDG UDQJH RI DLUOLQH RSHUDWLRQV DQG

HQYLURQPHQWV
6FRSH RI 623V
7KH LQLWLDO 623V IRU D QHZ DLUFUDIW PRGHO DUH EDVHG
RQ WKH DERYH REMHFWLYHV DQG RQ WKH H[SHULHQFH 623V VKRXOG LGHQWLI\ DQG GHVFULEH WKH VWDQGDUG
JDLQHG GXULQJ WKH GHYHORSPHQW DQG FHUWLILFDWLRQ WDVNV DQG GXWLHV RI IOLJKWFUHZ IRU HDFK IOLJKW SKDVH
IOLJKWWHVW FDPSDLJQ DQG GXULQJ WKH URXWHSURYLQJ
SURJUDP 623V VKRXOG EH DFFRPSOLVKHG E\ UHFDOO EXW FULWLFDO
WDVNV HJ VHOHFWLRQV RI V\VWHPV DQG FKDQJHV RI
$IWHU WKH\ DUH LQWURGXFHG LQWR VHUYLFH WKH LQLWLDO DLUFUDIW FRQILJXUDWLRQ VKRXOG EH FURVVFKHFNHG E\
623V DUH SHULRGLFDOO\ UHYLHZHG DQG LPSURYHG XVH RI QRUPDO FKHFNOLVWV DFFRUGLQJ WR WKH SKDVH RI
EDVHG RQ WKH IHHGEDFN UHFHLYHG IURP YDULRXV XVHUV IOLJKW
LH LQ WUDLQLQJ DQG LQ OLQH RSHUDWLRQV
623V VKRXOG EH VXSSOHPHQWHG E\ LQIRUPDWLRQ RQ
VSHFLILF RSHUDWLQJ WHFKQLTXHV HJ DGYHUVH
2SHUDWRU¶ &XVWRPL]HG 623V ZHDWKHU RSHUDWLRQ RU E\ RSHUDWLRQDO

UHFRPPHQGDWLRQV IRU VSHFLILF W\SHV RI RSHUDWLRQV
$LUEXV ,QGXVWULH¶ 623V FDQ EH DGRSWHG ZLWKRXW HJ RSHUDWLRQ RQ ZHW RU FRQWDPLQDWHG UXQZD\
FKDQJH E\ DQ RSHUDWRU RU XVHG DV WKH EDVLV IRU WKH RSHUDWLRQ LQ (7236 DUHD DQGRU LQ 5960
GHYHORSPHQW RI FXVWRPL]HG FRPSDQ\¶ 623V DLUVSDFH
&XVWRPL]HG FRPSDQ\ 623V XVXDOO\ DUH HVWDEOLVKHG 623V VKRXOG DVVXPH WKDW DOO DLUFUDIW V\VWHPV
WR DVVXUH VWDQGDUGL]DWLRQ DFURVV WKH GLIIHUHQW RSHUDWH QRUPDOO\ DQG WKDW DOO DXWRPDWLF IXQFWLRQV
DLUFUDIW IOHHWV EHLQJ RSHUDWHG E\ WKH DLUOLQH DUH XVHG QRUPDOO\
1RWH
'HYLDWLRQV IURP WKH $LUEXV ,QGXVWULH¶ 623V PD\ EH
$ V\VWHP PD\ EH SDUWLDOO\ RU WRWDOO\ LQRSHUDWLYH
FRRUGLQDWHG ZLWK $LUEXV ,QGXVWULH VXFK GHYLDWLRQV
ZLWKRXW DIIHFWLQJ WKH 623V
XVXDOO\ UHTXLUH DSSURYDO E\ WKH DLUOLQH¶V RSHUDWLRQDO
DXWKRULW\
623V VKRXOG HPSKDVL]H WKH IROORZLQJ DVSHFWV
623V VKRXOG EH VLPSOH FOHDU FRQFLVH DQG IUHTXHQWO\ LQYROYHG LQ DSSURDFKDQGODQGLQJ
GLUHFWLYH WKH OHYHO RI H[SDQGHG LQIRUPDWLRQ VKRXOG DFFLGHQWV
EH WDLORUHG WR UHIOHFW WKH DLUOLQH¶V RSHUDWLQJ
SKLORVRSK\ DQG WUDLQLQJ SKLORVRSK\ x 7DVN VKDULQJ
2SHUDWRU¶V 623V VKRXOG EH UHYLHZHG DQG x 2SWLPXP XVH RI DXWRPDWLRQ
UHDVVHVVHG SHULRGLFDOO\ EDVHG RQ UHYLVLRQV RI WKH

$LUEXV ,QGXVWULH¶V 623V DQG RQ LQWHUQDO FRPSDQ\ x 2SHUDWLRQV *ROGHQ 5XOHV
IHHGEDFN WR LGHQWLI\ DQ\ QHHG IRU FKDQJH
x 6WDQGDUGV FDOOV

3DJH
x 8VH RI QRUPDO FKHFNOLVWV 7KH (XURSHDQ -$$ GHILQHV WKH VFRSH DQG FRQWHQWV
RI 623V LQ -$5236 DQG DVVRFLDWHG
x $SSURDFK DQG JRDURXQG EULHILQJV $SSHQGL[
x $OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV 7KH VFRSH RI 623V GHILQHG LQ WKH )$$ $&
LV DOORFDWHG E\ WKH -$$ WR WKH 3DUW $ DQG 3DUW % RI
WKH 2SHUDWLRQV 0DQXDO DV IROORZV
x 'HVFHQW SURILOH PDQDJHPHQW
x 3DUW $ *HQHUDO RSHUDWLRQDO SROLFLHV LH QRQ
x (QHUJ\ PDQDJHPHQW W\SHUHODWHG PDWWHUV DQG
x 3DUW % $HURSODQH RSHUDWLQJ PDWWHUV LH W\SH

x 7HUUDLQ DZDUHQHVV
UHODWHG PDWWHUV
x $SSURDFK KD]DUGV DZDUHQHVV

*HQHUDO 3ULQFLSOHV
x 8VH RI UDGLR DOWLPHWHU
623V VKRXOG FRQWDLQ VDIHJXDUGV LQ RUGHU WR
x (OHPHQWV RI D VWDELOL]HG DSSURDFK DQG PLQLPL]H WKH SRWHQWLDO IRU LQDGYHUWHQW GHYLDWLRQ IURP
DSSURDFK JDWHV SURFHGXUHV SDUWLFXODUO\ ZKHQ RSHUDWLQJ XQGHU

DEQRUPDO RU HPHUJHQF\ FRQGLWLRQV RU IROORZLQJ
LQWHUUXSWLRQV RU GLVWUDFWLRQV
x $SSURDFK SURFHGXUHV DQG WHFKQLTXHV IRU
YDULRXV W\SHV RI DSSURDFKHV
6DIHJXDUGV LQFOXGH
x /DQGLQJ DQG EUDNLQJ WHFKQLTXHV IRU YDULRXV x 7ULJJHUV

W\SHV RI UXQZD\ DQG ZLQG FRQGLWLRQV DQG
HYHQWV RU DFWLRQV LQLWLDWLQJ JURXSV RI DFWLRQV
FDOOHG DFWLRQEORFNV
x 5HDGLQHVV DQG FRPPLWPHQW WR JRDURXQG
HJ *3:6 ZDUQLQJ XQVWDELOL]HG DSSURDFK
ERXQFH UHFRYHU\ x $FWLRQ EORFNV
JURXSV RI DFWLRQV EHLQJ DFFRPSOLVKHG LQ
,Q DGGLWLRQ 623V VKRXOG DGGUHVV WKH IROORZLQJ VHTXHQFH DV D JURXS
DVSHFWV
x $FWLRQ SDWWHUQV

5HJXODWRU\ 'HILQLWLRQ IOLJKWGHFN SDQHO VFDQQLQJ VHTXHQFHV
SDWWHUQV VXSSRUWLQJ WKH IORZ DQG VHTXHQFH RI
RU
DFWLRQ EORFNV DQG

7KH 86 )$$ GHILQHV WKH VFRSH DQG FRQWHQWV RI
623V LQ $GYLVRU\ &LUFXODU $& x 6WDQGDUG FDOOV
7KH 623V GHILQHG LQ $& LQFOXGHV LWHPV
VWDQGDUG SKUDVHRORJ\ DQG WHUPV XVHG IRU
HIIHFWLYH LQWUDFUHZ FRPPXQLFDWLRQ
UHODWHG WR
x *HQHUDO RSHUDWLRQV SROLFLHV LH QRQW\SH 6WDQGDUGL]DWLRQ

UHODWHG DQG
623V LQFOXGLQJ VWDQGDUG FDOOV FRQVWLWXWH WKH

x $LUSODQH RSHUDWLQJ PDWWHUV LH W\SHUHODWHG UHIHUHQFH IRU FUHZ VWDQGDUGL]DWLRQ DQG SURYLGH WKH
ZRUNLQJ HQYLURQPHQW UHTXLUHG IRU HQKDQFHG DQG
HIILFLHQW FUHZ FRPPXQLFDWLRQ DQG FRRUGLQDWLRQ

3DJH
7DVN 6KDULQJ 6LOHQW &RFNSLW

7KH IROORZLQJ UXOHV DSSO\ WR DQ\ IOLJKW SKDVH EXW DUH 7KH 6WHULOH &RFNSLW UXOH DQG WKH 6LOHQW &RFNSLW
SDUWLFXODUO\ LPSRUWDQW LQ WKH KLJKZRUNORDG SKDVHV FRQFHSW RIWHQ DUH PLVXQGHUVWRRG DV UHIHUULQJ WR WKH
DVVRFLDWHG ZLWK DSSURDFK DQG ODQGLQJ VDPH RSHUDWLQJ SROLF\
7KH SLORW IO\LQJ 3) LV UHVSRQVLEOH IRU FRQWUROOLQJ WKH :KHQ DGKHULQJ WR D 6LOHQW &RFNSLW SROLF\ VWDQGDUG
YHUWLFDO IOLJKW SDWK DQG KRUL]RQWDO IOLJKW SDWK DQG IRU FDOOV DUH PLQLPL]HG )&8 VHOHFWLRQV )0$ FKDQJHV
HQHUJ\ PDQDJHPHQW E\ HLWKHU DQG WDUJHW FRQILUPDWLRQV RQ 3)' DQG 1' DUH QRW
DQQRXQFHG ORXGO\ EXW LQFOXGHG LQ WKH LQVWUXPHQWV
x 6XSHUYLVLQJ WKH DXWRSLORW YHUWLFDO JXLGDQFH DQG VFDQ
ODWHUDO JXLGDQFH DQG WKH DXWRWKUXVW RSHUDWLRQ
LH DZDUHQHVV RI PRGHV EHLQJ DUPHG RU $LUEXV ,QGXVWULH DFNQRZOHGJHV WKDW YDULDWLRQV PD\
HQJDJHG DQG RI PRGH FKDQJHV WKURXJK PRGH H[LVW LQ DLUOLQH RSHUDWLQJ SROLFLHV EXW HQFRXUDJHV
WUDQVLWLRQV DQG UHYHUVLRQV RSHUDWRUV WR DGRSW DQG DGKHUH WR D 6WDQGDUG &DOO
SROLF\ DV GHILQHG LQ %ULHILQJ 1RWH ² 6WDQGDUG
RU
&DOOV
x +DQG IO\LQJ WKH DLUFUDIW ZLWK RU ZLWKRXW IOLJKW

GLUHFWRU )' JXLGDQFH DQG ZLWK DQ DGDSWHG
QDYLJDWLRQ GLVSOD\ HJ 526( RU $5& PRGH 8VH RI $XWRPDWLRQ
:LWK KLJKHU OHYHOV RI DXWRPDWLRQ IOLJKW FUHZV DUH
7KH SLORW QRW IO\LQJ 31) LV UHVSRQVLEOH IRU
RIIHUHG DQ LQFUHDVLQJ QXPEHU RI RSWLRQV DQG
PRQLWRULQJ WDVNV DQG IRU SHUIRUPLQJ WKH DFWLRQV
VWUDWHJLHV WR FKRRVH IRU WKH WDVN WR EH
UHTXHVWHG E\ WKH 3) WKLV LQFOXGHV
DFFRPSOLVKHG
x 3HUIRUPLQJ WKH VWDQGDUG 31) WDVNV

7KH FRPSDQ\ 623V VKRXOG DFFXUDWHO\ GHILQH WKH
RSWLRQV DQG VWUDWHJLHV VHOHFWHG E\ WKH DLUOLQH IRU WKH
623 DFWLRQV DQG
YDULRXV IOLJKW SKDVHV DQG IRU WKH YDULRXV W\SHV RI
)OLJKW GLUHFWRU DQG )06 PRGH VHOHFWLRQV DQG DSSURDFKHV
WDUJHW HQWULHV ZKHQ LQ PDQXDO IOLJKW

%ULHILQJ 1RWH 2SWLPXP 8VH RI $XWRPDWLRQ
x 0RQLWRULQJ WKH FXUUHQW VWDWXV RI WKH DLUFUDIW SURYLGHV H[SDQGHG LQIRUPDWLRQ RQ WKH XVH RI
DQG $3)' $7+5 DQG )06
x 0RQLWRULQJ WKH 3) WR SURYLGH HIIHFWLYH EDFNXS

DV UHTXLUHG WKLV LQFOXGHV ERWK IOLJKW DQG JURXQG
RSHUDWLRQ
6FRSH DQG 8VH RI 1RUPDO &KHFNOLVWV
%ULHILQJ 1RWH 1RUPDO &KHFNOLVWV SURYLGHV D
6WHULOH &RFNSLW 5XOH GHWDLOHG RYHUYLHZ RQ WKH VFRSH DQG XVH RI QRUPDO
FKHFNOLVWV
$GKHULQJ WR WKH 6WHULOH &RFNSLW UXOH GHILQHG LQ

%ULHILQJ 1RWH ² ,QWUD&RFNSLW &RPPXQLFDWLRQV
0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV PD\ EH

7UDLQLQJ $VSHFWV
PDQGDWHG E\ RSHUDWLRQDO DXWKRULWLHV HJ 86 )$5
'LVFLSOLQHG XVH RI 623V DQG QRUPDO FKHFNOLVWV
± 3DUW RU DGRSWHG SHU FRPSDQ\ SROLF\
VKRXOG EHJLQ GXULQJ WKH WUDQVLWLRQ WUDLQLQJ FRXUVH
EHFDXVH KDELWV DQG URXWLQHV DFTXLUHG GXULQJ

$LUEXV ,QGXVWULH HQFRXUDJHV DGKHUHQFH WR WKH
WUDQVLWLRQ WUDLQLQJ KDYH D ODVWLQJ HIIHFW
6WHULOH &RFNSLW UXOH UHJDUGOHVV RI DSSOLFDEOH
QDWLRQDO UHTXLUHPHQWV

3DJH
7UDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ SURYLGH D x ,QFRUUHFW &50 WHFKQLTXHV HJ DEVHQFH RI
XQLTXH RSSRUWXQLW\ WR GLVFXVV WKH UHDVRQV IRU WKH FURVVFKHFNLQJ FUHZ FRRUGLQDWLRQ RU HIIHFWLYH
UXOHV DQG SURFHGXUHV DQG WR GLVFXVV WKH EDFNXS
FRQVHTXHQFHV RI IDLOLQJ WR FRPSO\ ZLWK WKHP
x &RPSDQ\ SROLFLHV HJ UHJDUGLQJ VFKHGXOHV
&RQYHUVHO\ DOORZLQJ D UHOD[HG DGKHUHQFH WR 623V FRVWV JRDURXQG DQG GLYHUVLRQ
DQGRU D UHOD[HG XVH RI QRUPDO FKHFNOLVWV GXULQJ
LQLWLDO RU UHFXUUHQW VLPXODWRU WUDLQLQJ PD\ HQFRXUDJH x 2WKHU SROLFLHV HJ FUHZ GXW\ WLPH
FRUUHVSRQGLQJ GHYLDWLRQV GXULQJ OLQH RSHUDWLRQV

x 3HUVRQDO GHVLUHV RU FRQVWUDLQWV HJ VFKHGXOH
PLVVLRQ FRPSOHWLRQ
)DFWRU ,QYROYHG LQ 'HYLDWLRQV IURP 623V x &RPSODFHQF\ DQG
7R HQVXUH HIIHFWLYH FRPSOLDQFH ZLWK SXEOLVKHG x 2YHUFRQILGHQFH HJ KLJK WLPH RQ DLUFUDIW
623V LW LV LPSRUWDQW WR XQGHUVWDQG ZK\ SLORWV W\SH
LQWHQWLRQDOO\ RU LQDGYHUWHQWO\ GHYLDWH IURP UXOHV RU
VWDQGDUGV
7KHVH IDFWRUV PD\ EH XVHG WR DVVHVV FRPSDQ\
DQGRU SHUVRQDO H[SRVXUH DQG WR GHYHORS
,Q PRVW FDVHV RI GHYLDWLRQ IURP 623V WKH
FRUUHVSRQGLQJ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
SURFHGXUH WKDW ZDV IROORZHG LQ SODFH RI WKH
GHIHQVH
SXEOLVKHG SURFHGXUH VHHPHG WR EH DSSURSULDWH IRU
WKH SUHYDLOLQJ VLWXDWLRQ FRQVLGHULQJ WKH LQIRUPDWLRQ
DYDLODEOH DW WKH WLPH
6XPPDU\ RI .H\ 3RLQWV
7KH IROORZLQJ IDFWRUV DQG FRQGLWLRQV DUH FLWHG RIWHQ
LQ GLVFXVVLQJ GHYLDWLRQV IURP 623V 623V VKRXOG LQFOXGH DQG HPSKDVL]H DVSHFWV WKDW
DUH LQYROYHG IUHTXHQWO\ LQ DSSURDFKDQGODQGLQJ
x ,QDGHTXDWH NQRZOHGJH RI RU IDLOXUH WR DFFLGHQWV
XQGHUVWDQG WKH UXOH SURFHGXUH RU DFWLRQ
HJ GXH WR TXDOLW\ RI ZRUGLQJ RU SKUDVLQJ UXOH &RPSDQ\ SROLFLHV WHFKQLFDO WUDLQLQJ DQG &50
RU SURFHGXUH RU DFWLRQ EHLQJ SHUFHLYHG DV WUDLQLQJ SURJUDPV OLQH FKHFNV DQG OLQH DXGLWV
LQDSSURSULDWH RU LQVXIILFLHQW HPSKDVLV RQ 623V VKRXOG
GXULQJ WUDLQLQJ
x 3URPRWH VWULFW DGKHUHQFH WR 623V DQG
x ,QVXIILFLHQW HPSKDVLV RQ VWULFW DGKHUHQFH WR
x ,GHQWLI\ DQG DGGUHVV WKH UHDVRQV IRU LQWHQWLRQDO
623V GXULQJ WUDQVLWLRQ DQG UHFXUUHQW WUDLQLQJ
RU LQDGYHUWHQW GHYLDWLRQV IURP 623V
x ,QVXIILFLHQW YLJLODQFH IDWLJXH
x 'LVWUDFWLRQV HJ GXH WR LQWUDFRFNSLW DFWLYLW\ $VVRFLDWHG %ULHILQJ 1RWHV

x ,QWHUUXSWLRQV HJ GXH WR $7& FRPPXQLFDWLRQ 7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG
DORQJ ZLWK WKH DERYH JHQHUDO LQIRUPDWLRQ LQ RUGHU WR
x 7DVN VDWXUDWLRQ LH DEVHQFH RI PXOWLWDVNLQJ UHYLVLW DOO WKH DVSHFWV DVVRFLDWHG ZLWK VWDQGDUG
DELOLW\ RU WDVN RYHUORDG RSHUDWLQJ SURFHGXUHV
x ,QFRUUHFW PDQDJHPHQW RI SULRULWLHV HJ ODFN RI x 2SWLPXP 8VH RI $XWRPDWLRQ

GHFLVLRQPDNLQJ PRGHO IRU WLPHFULWLFDO
VLWXDWLRQV x 2SHUDWLRQV *ROGHQ 5XOHV
x 5HGXFHG DWWHQWLRQ WXQQHO YLVLRQ LQ DEQRUPDO x 6WDQGDUG &DOOV

RU KLJKZRUNORDG FRQGLWLRQV
x 8VH RI 1RUPDO &KHFNOLVWV

3DJH
x $SSURDFK DQG *RDURXQG %ULHILQJV x )$$ $& 6WDQGDUG 2SHUDWLQJ
3URFHGXUHV IRU )OLJKWGHFN &UHZ 0HPEHUV
x +) ,VVXHV LQ $SSURDFK DQG /DQGLQJ 'UDIW
$FFLGHQWV
x )$$ $& ± &RPPXQLFDWLRQV DQG
x &50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ &RRUGLQDWLRQ EHWZHHQ )OLJKW &UHZPHPEHUV DQG
)OLJKW $WWHQGDQWV
$FFLGHQWV
x )$$ $& ± &UHZ 5HVRXUFH 0DQDJHPHQW
7UDLQLQJ
5HJXODWRU\ 5HIHUHQFHV x )$$ $& ± $GYDQFH 4XDOLILFDWLRQ
x ,&$2 ± $QQH[ ± 2SHUDWLRQ RI $LUFUDIW 3DUW , ± 7UDLQLQJ
,QWHUQDWLRQDO &RPPHUFLDO $LU WUDQVSRUW ±

x )$$ $& ± 6WDQGDUG 2SHUDWLQJ
$HURSODQHV $SSHQGL[
3URFHGXUHV IRU )OLJKW 'HFN &UHZPHPEHUV
x ,&$2 ± 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV

x )$$ $& ± 'LVSDWFK 5HVRXUFH
± $LUFUDIW 2SHUDWLRQV 3$16236 'RF
0DQDJHPHQW 7UDLQLQJ
9ROXPH , ± )OLJKW SURFHGXUHV 3RVW $PHQGPHQW
1R DSSOLFDEOH 1RY x -$5236 DQG DVVRFLDWHG ,QWHUSUHWDWLYH
DQG ([SODQDWRU\ 0DWHULDO ,(0 ± *HQHUDO 5XOHV
x ,&$2 ± 0DQXDO RI $OO:HDWKHU 2SHUDWLRQV
IRU 2SHUDWLRQV 0DQXDOV
'RF
x -$5236 DQG DVVRFLDWHG $SSHQGL[
x ,&$2 ± 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO
$FFHSWDEOH 0HDQV RI &RPSOLDQFH $0& DQG
'RF
,QWHUSUHWDWLYH DQG ([SODQDWRU\ 0DWHULDO ,(0 ±
x )$5 ± 5HVSRQVLELOLW\ DQG DXWKRULW\ RI WKH 2SHUDWLRQV 0DQXDO ± VWUXFWXUH DQG FRQWHQWV
SLORWLQFRPPDQG HPHUJHQF\ DXWKRULW\
x )$5 ± 3UHSDUDWLRQ RI 0DQXDOV
x )$5 ± &RQWHQWV RI 0DQXDOV

3DJH
2SWLPXP8VHRI$XWRPDWLRQ
+LJKHU OHYHOV RI DXWRPDWLRQ SURYLGH IOLJKW FUHZV ZLWK

DQ LQFUHDVLQJ QXPEHU RI RSWLRQV DQG VWUDWHJLHV WR
,QWURGXFWLRQ
2SWLPXP XVH RI DXWRPDWLRQ UHIHUV WR WKH LQWHJUDWHG FKRRVH IRU WKH WDVN WR EH DFFRPSOLVKHG
DQG FRRUGLQDWHG XVH RI WKH IROORZLQJ V\VWHPV
x $XWRSLORW IOLJKW GLUHFWRU $3 )'
7KH DSSOLFDEOH )&20 SURYLGHV VSHFLILF LQIRUPDWLRQ
IRU HDFK DLUFUDIW W\SH
x $XWRWKURWWOHDXWRWKUXVW $7+5 DQG
x )OLJKW PDQDJHPHQW V\VWHP )06 6WDWLVWLFDO 'DWD
7KUHH JHQHUDWLRQV RI IOLJKW JXLGDQFH V\VWHPV DUH (UURUV LQ XVLQJ DQG PDQDJLQJ WKH DXWRPDWLF IOLJKW
FXUUHQWO\ LQ DLUOLQH VHUYLFH SURYLGLQJ GLIIHUHQW OHYHOV V\VWHP DQG WKH ODFN RI DZDUHQHVV RI WKH RSHUDWLQJ
RI LQWHJUDWLRQ DQG DXWRPDWLRQ PRGHV DUH FDXVDO IDFWRUV LQ PRUH WKDQ RI
DSSURDFKDQGODQGLQJ DFFLGHQWV
x $%% DQG $ ))&& IDPLOLHV
3DUWLDO LQWHJUDWLRQ SDLULQJ RI WKH $3)' DQG $3 $7+5 ,QWHJUDWLRQ
$7+5 PRGHV ,QWHJUDWHG $3$7+5 V\VWHPV IHDWXUH DQ

6HOHFWHG YHUWLFDO DQG ODWHUDO PRGHV DQG DVVRFLDWLRQ SDLULQJ RI $3 SLWFK PRGHV HOHYDWRU
/DWHUDO QDYLJDWLRQ RQO\ LH LQHUWLDO
FRQWURO DQG $7+5 PRGHV WKURWWOHWKUXVW OHYHUV
QDYLJDWLRQ V\VWHP >,16@ RU )06*36 FRQWURO
$Q LQWHJUDWHG $3$7+5 RSHUDWHV LQ WKH VDPH ZD\
x $ DQG $ IDPLOLHV DV D KXPDQ SLORW
)XOO LQWHJUDWLRQ RI $3)' DQG $7+5 x (OHYDWRU LV XVHG WR FRQWURO SLWFK DWWLWXGH
PRGHV DLUVSHHG YHUWLFDO VSHHG DOWLWXGH
6HOHFWHG YHUWLFDO DQG ODWHUDO PRGHV DQG
IOLJKWSDWKDQJOH YHUWLFDO QDYLJDWLRQ SURILOH RU WR
WUDFN D JOLGHVORSH EHDP
9HUWLFDO DQG ODWHUDO QDYLJDWLRQ )06
x 7KURWWOHWKUXVW OHYHUV DUH XVHG WR PDLQWDLQ D
JLYHQ WKUXVW RU D JLYHQ DLUVSHHG
x $ $ $ IDPLOLHV
)XOO LQWHJUDWLRQ RI $3)' $7+5 ± )06 7KURXJKRXW WKH IOLJKW WKH SLORW¶V REMHFWLYH LV WR IO\
PRGHV )0*6 x 3HUIRUPDQFH VHJPHQWV DW FRQVWDQW WKUXVW RU DW
6HOHFWHG YHUWLFDO DQG ODWHUDO PRGHV DQG LGOH HJ WDNHRII FOLPE RU GHVFHQW RU
0DQDJHG YHUWLFDO DQG ODWHUDO QDYLJDWLRQ LQ DOO
IOLJKW SKDVHV x 7UDMHFWRU\ VHJPHQWV DW FRQVWDQW VSHHG HJ
FUXLVH RU DSSURDFK

3DJH
'HSHQGLQJ RQ WKH WDVN WR EH DFFRPSOLVKHG 7KH )&8 FRQVWLWXWHV WKH PDLQ LQWHUIDFH EHWZHHQ WKH
PDLQWDLQLQJ WKH DLUVSHHG LV DVVLJQHG HLWKHU WR WKH SLORW DQG WKH DXWRIOLJKW V\VWHP IRU VKRUWWHUP
$3 HOHYDWRUV RU WR WKH $7+5 WKURWWOHVWKUXVW JXLGDQFH LH IRU LPPHGLDWH JXLGDQFH
OHYHUV DV VKRZQ LQ 7DEOH
7KH )06 PXOWLSXUSRVH FRQWURO DQG GLVSOD\ XQLW
0&'8 FRQVWLWXWHV WKH PDLQ LQWHUIDFH EHWZHHQ WKH
SLORW DQG WKH DXWRIOLJKW V\VWHP IRU ORQJWHUP
$7+5 $3
JXLGDQFH LH IRU WKH FXUUHQW DQG VXEVHTXHQW IOLJKW
SKDVHV
7KURWWOHV
(OHYDWRUV 2Q DLUFUDIW HTXLSSHG ZLWK DQ )06 IHDWXULQJ ERWK
7KUXVW OHYHUV ODWHUDO DQG YHUWLFDO QDYLJDWLRQ WZR W\SHV RI JXLGDQFH
PRGHV DQG DVVRFLDWHG WDUJHWV DUH DYDLODEOH
3HUIRUPDQFH
x 6HOHFWHG JXLGDQFH
7KUXVW RU LGOH 6SHHG
6HJPHQW WKH DLUFUDIW LV JXLGHG WR DFTXLUH DQG PDLQWDLQ
WKH WDUJHWV VHW E\ WKH FUHZ RQ WKH )&8 XVLQJ
WKH PRGHV HQJDJHG RQ WKH )&8
96
x )06 PDQDJHG JXLGDQFH

7UDMHFWRU\ 9HUWLFDO SURILOH
6SHHG WKH DLUFUDIW LV JXLGHG DORQJ WKH )06 ODWHUDO
6HJPHQW
$OWLWXGH DQG YHUWLFDO IOLJKW SODQ VSHHG SURILOH DQG
DOWLWXGH WDUJHWV DV PDQDJHG E\ WKH )06
*OLGH VORSH
DFFRXQWLQJ IRU DOWLWXGH DQG VSHHG
FRQVWUDLQWV DV DSSOLFDEOH
7DEOH
$3 ± $7+5 0RGHV ,QWHJUDWLRQ 8QGHUVWDQGLQJ $XWRPDWHG 6\VWHPV

8QGHUVWDQGLQJ DQ\ DXWRPDWHG V\VWHP EXW
'HVLJQ 2EMHFWLYH SDUWLFXODUO\ WKH $)6 DQG )06 LGHDOO\ ZRXOG UHTXLUH
DQVZHULQJ WKH IROORZLQJ IXQGDPHQWDO TXHVWLRQV
7KH GHVLJQ REMHFWLYH RI WKH DXWRPDWLF IOLJKW V\VWHP x +RZ LV WKH V\VWHP GHVLJQHG "
$)6 LV WR SURYLGH DVVLVWDQFH WR WKH FUHZ
WKURXJKRXW WKH IOLJKW ZLWKLQ WKH QRUPDO IOLJKW
x :K\ LV WKH V\VWHP GHVLJQHG WKLV ZD\ "
HQYHORSH E\
x 5HOLHYLQJ WKH 3) IURP URXWLQH KDQGOLQJ WDVNV x +RZ GRHV WKH V\VWHP LQWHUIDFH DQG FRPPXQLFDWH
DQG WKXV DOORZLQJ WLPH DQG UHVRXUFHV WR ZLWK WKH SLORW "
HQKDQFH KLVKHU VLWXDWLRQDO DZDUHQHVV RU IRU
SUREOHP VROYLQJ WDVNV DQG x +RZ WR RSHUDWH WKH V\VWHP LQ QRUPDO DQG
DEQRUPDO VLWXDWLRQV "
x 3URYLGLQJ WKH 3) ZLWK DGHTXDWH DWWLWXGH DQG
IOLJKW SDWK JXLGDQFH WKURXJK WKH )' IRU KDQG
IO\LQJ 7KH IROORZLQJ DVSHFWV VKRXOG EH IXOO\ XQGHUVWRRG IRU
DQ RSWLPXP XVH RI DXWRPDWLRQ
7KH $)6 SURYLGHV JXLGDQFH WR FDSWXUH DQG PDLQWDLQ x ,QWHJUDWLRQ RI $3)' DQG $7+5 PRGHV
WKH VHOHFWHG WDUJHWV DQG WKH GHILQHG IOLJKW SDWK LQ LH SDLULQJ RI PRGHV
DFFRUGDQFH ZLWK WKH PRGHV HQJDJHG DQG WKH
WDUJHWV VHW E\ WKH IOLJKW FUHZ RQ WKH )&8 RU RQ WKH
x 0RGH WUDQVLWLRQ DQG UHYHUVLRQ VHTXHQFHV
)06 &'8

3DJH
x 3LORWV\VWHP LQWHUIDFHV IRU (IIHFWLYH PRQLWRULQJ RI WKHVH FRQWUROV DQG GLVSOD\V

SURPRWHV DQG LQFUHDVHV IOLJKW FUHZ DZDUHQHVV RI
3LORWWRV\VWHP FRPPXQLFDWLRQ LH IRU
PRGHV HQJDJHPHQW DQG WDUJHW VHOHFWLRQV x 7KH VWDWXV RI WKH V\VWHP LH PRGHV EHLQJ
DQG HQJDJHG RU DUPHG DQG
6\VWHPWRSLORW IHHGEDFN LH IRU PRGHV DQG x 7KH DYDLODEOH JXLGDQFH LH IRU IOLJKW SDWK DQG
WDUJHWV FURVVFKHFN VSHHG FRQWURO
(IIHFWLYH PRQLWRULQJ RI FRQWUROV DQG GLVSOD\V DOVR

,Q WKH FRQWH[W RI WKLV %ULHILQJ 1RWH WKH LQWHUIDFH DQG
HQDEOHV WKH SLORW WR SUHGLFW DQG DQWLFLSDWH WKH HQWLUH
FRPPXQLFDWLRQ EHWZHHQ WKH IOLJKW FUHZ DQG WKH
VHTXHQFH RI IOLJKW PRGHV DQQXQFLDWLRQV )0$
V\VWHP QHHG WR EH HPSKDVLVHG
WKURXJKRXW IOLJKW SKDVHV LH WKURXJKRXW PRGH
WUDQVLWLRQV RU PRGH UHYHUVLRQV
)OLJKW &UHZ 6\VWHP ,QWHUIDFH
2SHUDWLQJ 3KLORVRSK\ DQG 5XOHV

:KHQ SHUIRUPLQJ DQ DFWLRQ RQ WKH )&8 RU )06
&'8 WR JLYH D FRPPDQG WR WKH $)6 WKH SLORW KDV
2SWLPXP XVH RI DXWRPDWLRQ UHTXLUHV VWULFW
DQ H[SHFWDWLRQ RI WKH DLUFUDIW UHDFWLRQ DQG
DGKHUHQFH WR WKH GHVLJQ SKLORVRSK\ DQG RSHUDWLQJ
WKHUHIRUH PXVW KDYH LQ PLQG WKH IROORZLQJ
SKLORVRSK\ DQG WR WKH IROORZLQJ UXOHV RI RSHUDWLRQ
TXHVWLRQV
x :KDW GR , ZDQW WKH DLUFUDIW WR IO\ QRZ "

8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU
x :KDW GR , ZDQW WR IO\ QH[W " WKH WDVN
2Q KLJKO\ DXWRPDWHG DQG LQWHJUDWHG DLUFUDIW VHYHUDO
7KLV LPSOLHV DQVZHULQJ DOVR WKH IROORZLQJ TXHVWLRQV
OHYHOV RI DXWRPDWLRQ DUH DYDLODEOH WR SHUIRUP D JLYHQ
WDVN
x :KLFK PRGH GLG , HQJDJH DQG ZKLFK WDUJHW GLG
, VHW IRU WKH DLUFUDIW WR IO\ QRZ " x )06 PRGHV DQG JXLGDQFH RU
x 6HOHFWHG PRGHV DQG JXLGDQFH

x ,V WKH DLUFUDIW IROORZLQJ WKH LQWHQGHG YHUWLFDO DQG
ODWHUDO IOLJKW SDWK DQG WDUJHWV "
7KH FRUUHFW OHYHO RI DXWRPDWLRQ GHSHQGV RQ
x :KLFK PRGH GLG , DUP DQG ZKLFK WDUJHW GLG , SUH

VHW IRU WKH DLUFUDIW WR IO\ QH[W " x 7KH WDVN WR EH SHUIRUPHG
VKRUWWHUP WDFWLFDO WDVN RU

7KH NH\ UROH RI WKH IROORZLQJ FRQWUROV DQG GLVSOD\V
WKHUHIRUH PXVW EH XQGHUVWRRG ORQJWHUP VWUDWHJLF WDVN
x )&8 PRGH VHOHFWLRQNH\V WDUJHWVHWWLQJ NQREV x 7KH IOLJKW SKDVH
DQG GLVSOD\ ZLQGRZV

HQURXWH
x )06 0&'8 NH\ERDUG OLQHVHOHFW NH\V GLVSOD\ WHUPLQDO DUHD RU
SDJHV DQG PHVVDJHV

DSSURDFK DQG
x )OLJKW PRGHV DQQXQFLDWRU )0$ DQQXQFLDWLRQV

x 7KH WLPH DYDLODEOH
RQ 3)' DQG
QRUPDO VHOHFWLRQ RU HQWU\ RU
x 3)' DQG 1' GDWD
ODVWPLQXWH FKDQJH

3DJH
7KH FRUUHFW OHYHO RI DXWRPDWLRQ RIWHQ LV WKH RQH WKH $Q\ DFWLRQ RQ WKH )&8 RU RQ WKH )06 NH\ERDUG DQG
SLORW IHHOV FRPIRUWDEOH ZLWK IRU WKH WDVN RU IRU WKH OLQHVHOHFW NH\V VKRXOG EH FRQILUPHG E\ FURVV
SUHYDLOLQJ FRQGLWLRQV GHSHQGLQJ RQ KLVKHU FKHFNLQJ WKH FRUUHVSRQGLQJ DQQXQFLDWLRQ RU GDWD RQ
NQRZOHGJH DQG H[SHULHQFH RI WKH DLUFUDIW DQG WKH 3)' DQGRU 1' DQG RQ WKH )06 &'8
V\VWHPV
$W DOO WLPHV WKH 3) DQG 31) VKRXOG EH DZDUH RI WKH
5HYHUVLRQ WR KDQG IO\LQJ DQG PDQXDO WKUXVW FRQWURO VWDWXV RI WKH JXLGDQFH PRGHV EHLQJ DUPHG RU
DFWXDOO\ PD\ EH WKH FRUUHFW OHYHO RI DXWRPDWLRQ HQJDJHG DQG RI DQ\ PRGH FKDQJHRYHU WKURXJKRXW
GHSHQGLQJ RQ WKH SUHYDLOLQJ FRQGLWLRQV PRGH WUDQVLWLRQV DQG UHYHUVLRQV
)06 RU VHOHFWHG JXLGDQFH FDQ EH XVHG LQ (QKDQFHG UHIHUHQFH WR WKH DERYH FRQWUROV DQG
VXFFHVVLRQ RU LQ FRPELQDWLRQ HJ )06 ODWHUDO GLVSOD\V SURPRWHV DQG LQFUHDVHV WKH IOLJKW FUHZ
JXLGDQFH WRJHWKHU ZLWK VHOHFWHG YHUWLFDO JXLGDQFH DZDUHQHVV RI
DV EHVW VXLWHG IRU WKH IOLJKW SKDVH DQG SUHYDLOLQJ
FRQVWUDLQWV
x 7KH VWDWXV RI WKH V\VWHP LH PRGHV EHLQJ
DUPHG RU HQJDJHG
7KH 3) DOZD\V UHWDLQ WKH DXWKRULW\ DQG FDSDELOLW\ WR x 7KH DYDLODEOH JXLGDQFH LH IRU IOLJKW SDWK DQG
VHOHFW WKH PRVW DSSURSULDWH OHYHO RI DXWRPDWLRQ DQG VSHHG FRQWURO
JXLGDQFH IRU WKH WDVN WKLV LQFOXGHV
x $GRSWLQJ D PRUH GLUHFW OHYHO RI DXWRPDWLRQ E\ 7KLV HQDEOHV WKH IOLJKW FUHZ WR SUHGLFW DQG DQWLFLSDWH
UHYHUWLQJ IURP )06PDQDJHG JXLGDQFH WR WKH HQWLUH VHTXHQFH RI IOLJKW PRGH DQQXQFLDWLRQV
VHOHFWHG JXLGDQFH LH WR VHOHFWHG PRGHV DQG WKURXJKRXW VXFFHVVLYH IOLJKW SKDVHV LH WKURXJKRXW
WDUJHWV PRGH WUDQVLWLRQV RU UHYHUVLRQV
x 6HOHFWLQJ D PRUH DSSURSULDWH ODWHUDO RU YHUWLFDO

PRGH RU
0RQLWRU DXWRPDWLRQ DW DOO WLPHV
x 5HYHUWLQJ WR KDQG IO\LQJ ZLWK RU ZLWKRXW )'
JXLGDQFH ZLWK RU ZLWKRXW $7+5 IRU GLUHFW 7KH XVH DQG RSHUDWLRQ RI WKH $)6 PXVW EH
FRQWURO RI DLUFUDIW YHUWLFDO WUDMHFWRU\ ODWHUDO PRQLWRUHG DW DOO WLPHV E\
WUDMHFWRU\ DQG WKUXVW
x &KHFNLQJ DQG DQQRXQFLQJ WKH VWDWXV RI $3)'
PRGHV DQG $7+5 PRGH RQ WKH )0$
LH DUPLQJ RU HQJDJHPHQW
.QRZ \RXU $YDLODEOH *XLGDQFH DW DOO WLPHV
x 2EVHUYLQJ DQG DQQRXQFLQJ WKH UHVXOW RI DQ\
7KH )&8 DQG WKH )06 &'8 DUH WKH SULPH WDUJHW VHWWLQJ RU FKDQJH RQ WKH )&8 RQ WKH
LQWHUIDFHV IRU WKH IOLJKW FUHZ WR FRPPXQLFDWH ZLWK UHODWHG 3)' DQGRU 1' VFDOHV DQG
WKH DLUFUDIW V\VWHPV LH WR DUP RU HQJDJH PRGHV
DQG WR VHW WDUJHWV
x 6XSHUYLVLQJ WKH UHVXOWLQJ $3)' JXLGDQFH DQG
$7+5 RSHUDWLRQ RQ WKH 3)' DQG 1' SLWFK
DWWLWXGH DQG EDQN DQJOH VSHHG DQG VSHHG WUHQG
7KH 3)' DQG 1' DUH WKH SULPH LQWHUIDFHV IRU WKH
DOWLWXGH YHUWLFDO VSHHG KHDGLQJ RU WUDFN «
DLUFUDIW WR FRPPXQLFDWH ZLWK WKH IOLJKW FUHZ WR
FRQILUP WKDW WKH DLUFUDIW V\VWHPV KDYH FRUUHFWO\
DFFHSWHG WKH PRGH VHOHFWLRQV DQG WDUJHW HQWULHV
%H UHDG\ WR WDNH RYHU LI UHTXLUHG
x 3)' )0$ VSHHG VFDOH DQG DOWLWXGH VFDOH
JXLGDQFH PRGHV VSHHG DQG DOWLWXGH WDUJHWV ,I GRXEW H[LVWV UHJDUGLQJ WKH DLUFUDIW IOLJKW SDWK RU
DQG VSHHG FRQWURO QR DWWHPSW DW UHSURJUDPPLQJ WKH
DXWRPDWHG V\VWHPV VKRXOG EH PDGH
x 1'
6HOHFWHG JXLGDQFH RU KDQG IO\LQJ WRJHWKHU ZLWK WKH
ODWHUDO JXLGDQFH KHDGLQJ RU WUDFN RU XVH RI QDYDLGV UDZ GDWD VKRXOG EH XVHG XQWLO WLPH
)06 IOLJKW SODQ DQG FRQGLWLRQV SHUPLW UHSURJUDPPLQJ WKH $3)' RU
)06

3DJH
,I WKH DLUFUDIW GRHV QRW IROORZ WKH LQWHQGHG IOLJKW SDWK x ,QVXIILFLHQW XQGHUVWDQGLQJ RI PRGH WUDQVLWLRQV
FKHFN WKH $3 DQG $7+5 HQJDJHPHQW VWDWXV DQG PRGH UHYHUVLRQV LH PRGH FRQIXVLRQ
,I HQJDJHG GLVFRQQHFW WKH $3 DQGRU $7+5 XVLQJ x ,QDGHTXDWH WDVN VKDULQJ DQGRU &50 SUDFWLFHV
WKH DVVRFLDWHG LQVWLQFWLYH GLVFRQQHFW SXVK EXWWRQV SUHYHQWLQJ WKH 3) IURP PRQLWRULQJ WKH IOLJKW SDWK
WR UHYHUW WR KDQG IO\LQJ ZLWK )' JXLGDQFH RU ZLWK DQG DLUVSHHG
UHIHUHQFH WR UDZ GDWD DQGRU WR PDQXDO WKUXVW
FRQWURO HJ ERWK SLORWV EHLQJ HQJDJHG LQ WKH
PDQDJHPHQW RI DXWRPDWLRQ RU LQ VROYLQJ DQ
,Q KDQG IO\LQJ WKH )' FRPPDQGV VKRXOG EH XQDQWLFLSDWHG VLWXDWLRQ RU DEQRUPDO FRQGLWLRQ
IROORZHG RWKHUZLVH WKH )' EDUV VKRXOG EH FOHDUHG

IURP GLVSOD\ x (QJDJLQJ WKH $3 ZLWK WKH DLUFUDIW LQ DQ RXWRIWULP
FRQGLWLRQ FRQYHQWLRQDO DLUFUDIW RQO\
$3 DQG $7+5 PXVW QRW EH RYHUULGGHQ PDQXDOO\
x )DLOXUH WR DUP WKH DSSURDFK PRGH DQGRU
,I $3 RU $7+5 RSHUDWLRQ QHHGV WR EH RYHUULGGHQ
LH IROORZLQJ D UXQDZD\ RU KDUGRYHU LPPHGLDWHO\ x )DLOXUH WR VHW WKH FRUUHFW ILQDO DSSURDFK FRXUVH
GLVFRQQHFW WKH DIIHFWHG V\VWHP E\ SUHVVLQJ WKH
DVVRFLDWHG LQVWLQFWLYH GLVFRQQHFW SXVK EXWWRQ
5HFRPPHQGDWLRQV IRU 2SWLPXP 8VH RI
$XWRPDWLRQ
)DFWRUV DQG (UURUV LQ 8VLQJ $XWRPDWLRQ
&RUUHFW XVH RI DXWRPDWHG V\VWHPV UHGXFHV ZRUNORDG
7KH IROORZLQJ IDFWRUV DQG HUURUV FDQ FDXVH IO\LQJ DQ DQG VLJQLILFDQWO\ LPSURYHV WKH IOLJKW FUHZ WLPH DQG
LQFRUUHFW IOLJKW SDWK ZKLFK LI QRW UHFRJQL]HG FDQ UHVRXUFHV IRU UHVSRQGLQJ WR
OHDG WR DQ DSSURDFKDQGODQGLQJ DFFLGHQW LQFOXGLQJ
RQH LQYROYLQJ &),7 x $Q XQDQWLFLSDWHG FKDQJH RU
x ,QDGYHUWHQW DUPLQJ RU HQJDJHPHQW RI DQ LQFRUUHFW x $Q DEQRUPDO RU HPHUJHQF\ FRQGLWLRQ

PRGH
'XULQJ OLQH RSHUDWLRQV $3 DQG $7+5 VKRXOG EH

x )DLOXUH WR YHULI\ WKH PRGH DUPHG RU HQJDJHG E\
HQJDJHG WKURXJKRXW WKH IOLJKW HVSHFLDOO\ LQ PDUJLQDO
UHIHUHQFH WR WKH )0$
ZHDWKHU FRQGLWLRQV RU ZKHQ RSHUDWLQJ LQWR DQ
XQIDPLOLDU DLUSRUW
x 6HOHFWLRQ RI DQ LQFRUUHFW WDUJHW DOWLWXGH VSHHG
KHDGLQJ RQ WKH )&8 DQG IDLOXUH WR FRQILUP WKH
8VLQJ $3 DQG $7+5 DOVR HQDEOHV IOLJKW FUHZ WR SD\
VHOHFWHG WDUJHW RQ WKH 3)' DQGRU 1' DV
PRUH DWWHQWLRQ WR $7& FRPPXQLFDWLRQV DQG WR RWKHU
DSSOLFDEOH
DLUFUDIW SDUWLFXODUO\ LQ FRQJHVWHG WHUPLQDO DUHDV DQG
DW KLJKGHQVLW\ DLUSRUWV
x 6HOHFWLRQ RI WKH )&8 DOWLWXGH WR DQ\ DOWLWXGH EHORZ
WKH ILQDO DSSURDFK LQWHUFHSW DOWLWXGH GXULQJ $3 DQG $7+5 VKRXOG EH XVHG GXULQJ D JRDURXQG
DSSURDFK DQG PLVVHGDSSURDFK WR UHGXFH ZRUNORDG
x ,QVHUWLRQ RI DQ HUURQHRXV ZD\SRLQW )06 ODWHUDO QDYLJDWLRQ VKRXOG EH XVHG WR UHGXFH

ZRUNORDG DQG ULVN RI &),7 GXULQJ JRDURXQG LI
x $UPLQJ RI WKH ODWHUDO QDYLJDWLRQ PRGH ZLWK DQ
LQFRUUHFW DFWLYH ZD\SRLQW LH DQ LQFRUUHFW 72 x $SSOLFDEOH PLVVHGDSSURDFK SURFHGXUH LV
ZD\SRLQW LQFOXGHG LQ WKH )06 IOLJKW SODQ DQG
x 3UHRFFXSDWLRQ ZLWK )06 SURJUDPPLQJ GXULQJ D x )06 QDYLJDWLRQ DFFXUDF\ KDV EHHQ FRQILUPHG
FULWLFDO IOLJKW SKDVH ZLWK FRQVHTXHQW ORVV RI
VLWXDWLRQDO DZDUHQHVV

3DJH
7KH VDIH DQG HIILFLHQW XVH DQG PDQDJHPHQW RI $3 x $QQRXQFH DOO FKDQJHV LQ DFFRUGDQFH ZLWK
$7+5 DQG )06 DUH EDVHG RQ WKH IROORZLQJ WKUHH 6WDQGDUG &DOOV GHILQHG LQ 623V
VWHS WHFKQLTXH
x $QWLFLSDWH
x :KHQ FKDQJLQJ WKH VHOHFWHG DOWLWXGH RQ )&8
FURVVFKHFN WKH VHOHFWHG DOWLWXGH LQGLFDWLRQ RQ
8QGHUVWDQG V\VWHP RSHUDWLRQ DQG UHVXOWV RI 3)'
DQ\ DFWLRQ EH DZDUH RI PRGHV EHLQJ DUPHG
'XULQJ GHVFHQW HQVXUH WKDW VHOHFWHG DOWLWXGH LV
RU HQJDJHG VHHN FRQFXUUHQFH RI RWKHU
QRW WR EHORZ WKH 0($ RU 06$ RU EH DZDUH RI WKH
FUHZPHPEHU LI GHHPHG QHFHVVDU\
DSSOLFDEOH PLQLPXPYHFWRULQJDOWLWXGH
x ([HFXWH 'XULQJ ILQDO DSSURDFK VHW JRDURXQG DOWLWXGH RQ

)&8 LH WKH 0'$+ RU '$+ VKRXOG QRW EH VHW
3HUIRUP DFWLRQ RQ )&8 RU RQ )06 &'8 DQG
x 3UHSDUH )06 IRU DUULYDO EHIRUH VWDUWLQJ WKH

x &RQILUP
GHVFHQW
&URVVFKHFN DQG DQQRXQFH DUPLQJ RU $Q DOWHUQDWLYH DUULYDO URXWLQJ DQRWKHU UXQZD\ RU

HQJDJHPHQW RI PRGHV DQG WDUJHWV VHOHFWLRQV FLUFOLQJ DSSURDFK FDQ EH SUHSDUHG RQ WKH
RQ )0$ 3)' DQGRU 1' VFDOHV RU )06 VHFRQGDU\ IOLJKW SODQ DV DQWLFLSDWHG
&'8
x ,Q FDVH RI D URXWLQJ FKDQJH HJ ',5 72 FURVV

7KH IROORZLQJ UXOHV DQG UHFRPPHQGDWLRQV VKRXOG EH
FKHFN WKH QHZ 72 ZD\SRLQW EHIRUH DFWLYDWLQJ WKH
FRQVLGHUHG WR VXSSRUW WKH LPSOHPHQWDWLRQ RI WKLV
',5 72 LH PDNLQJ VXUH WKDW WKH LQWHQGHG
WHFKQLTXH
72 ZD\SRLQW LV QRW DOUHDG\ EHKLQG WKH DLUFUDIW
x %HIRUH HQJDJLQJ WKH $3 PDNH VXUH WKDW

&DXWLRQ LV HVVHQWLDO GXULQJ GHVFHQW LQ
0RGHV HQJDJHG IRU )' JXLGDQFH FKHFN PRXQWDLQRXV DUHDV HQVXUH WKDW WKH QHZ WUDFN
)0$ DQQXQFLDWLRQV DUH WKH FRUUHFW PRGHV DQG DVVLJQHG DOWLWXGH DUH QRW EHORZ WKH VHFWRU
IRU WKH LQWHQGHG IOLJKW SKDVH DQG WDVN VDIH DOWLWXGH
6HOHFW WKH DSSURSULDWH PRGHV DV UHTXLUHG ,I XQGHU UDGDU YHFWRUV EH DZDUH RI WKH VHFWRU
DQG PLQLPXP YHFWRULQJDOWLWXGH
&RPPDQG EDUV GR QRW VKRZV ODUJH RUGHUV

,I QHFHVVDU\ WKH VHOHFWHG KHDGLQJ PRGH FDQ EH
XVHG ZLWK UHIHUHQFH WR QDYDLGV UDZ GDWD ZKLOH
LI ODUJH FRPPDQGV DUH JLYHQ PDLQWDLQ KDQG
YHULI\LQJ WKH QHZ URXWH DQGRU UHTXHVWLQJ
IO\LQJ WR FHQWHU WKH EDUV EHIRUH HQJDJLQJ
FRQILUPDWLRQ IURP $7&
$3
(QJDJLQJ WKH $3 ZKLOH ODUJH FRPPDQGV DUH x %HIRUH DUPLQJ WKH 1$9 PRGH HQVXUH WKDW WKH
UHTXLUHG WR DFKLHYH WKH LQWHQGHG IOLJKW SDWK FRUUHFW DFWLYH ZD\SRLQW LH 72 ZD\SRLQW LV
PD\ UHVXOW LQ WKH $3 RYHUVKRRWLQJ WKH GLVSOD\HG RQ WKH )06 &'8 DQG 1' DV
LQWHQGHG YHUWLFDO WDUJHW RU ODWHUDO WDUJHW DSSOLFDEOH
x %HIRUH DQ\ DFWLRQ RQ )&8 FKHFN WKDW WKH NQRE RU

,I WKH GLVSOD\HG 72 ZD\SRLQW RQ WKH 1' LV QRW
FRUUHFW WKH GHVLUHG 72 ZD\SRLQW FDQ EH UHVWRUHG
SXVK EXWWRQ LV WKH FRUUHFW RQH IRU WKH GHVLUHG
E\ HLWKHU
IXQFWLRQ
x $IWHU HDFK DFWLRQ RQ )&8 YHULI\ WKH UHVXOW RI WKLV FOHDULQJ DQ XQGXH LQWHUPHGLDWH ZD\SRLQW RU
DFWLRQ RQ
)0$ LH IRU DUPLQJ RU HQJDJHPHQW RI SHUIRUPLQJ D ',5 72 >GHVLUHG 72 ZD\SRLQW@
PRGHV DQGRU
0RQLWRU WKH FRUUHFW LQWHUFHSWLRQ RI WKH )06 ODWHUDO
3)'1' GDWD LH IRU VHOHFWHG WDUJHWV DQG IOLJKW SODQ
E\ UHIHUHQFH WR WKH DLUFUDIW IOLJKW SDWK DQG

DLUVSHHG UHVSRQVH

3DJH
x ,Q FDVH RI D ODWH URXWLQJ RU UXQZD\ FKDQJH x $W DQ\ WLPH LI WKH DLUFUDIW GRHV QRW IROORZ WKH
D UHYHUVLRQ WR $3 VHOHFWHG PRGHV DQG UDZ GDWD LV GHVLUHG IOLJKW SDWK DQGRU DLUVSHHG GR QRW
UHFRPPHQGHG KHVLWDWH WR UHYHUW WR D PRUH GLUHFW OHYHO RI
DXWRPDWLRQ
5HSURJUDPPLQJ WKH )06 GXULQJ D FULWLFDO IOLJKW
SKDVH HJ LQ WHUPLQDO DUHD RQ ILQDO DSSURDFK RU UHYHUW IURP )06PDQDJHG PRGHV WR VHOHFWHG
JRDURXQG LV QRW UHFRPPHQGHG H[FHSW WR PRGHV
DFWLYDWH WKH VHFRQGDU\ IOLJKW SODQ LI SUHSDUHG RU
RU
IRU VHOHFWLQJ D QHZ DSSURDFK
GLVFRQQHFW $3 DQG IROORZ )' JXLGDQFH LI
3ULRULW\ WDVNV DUH LQ WKDW RUGHU FRUUHFW
KRUL]RQWDO DQG YHUWLFDO IOLJKW SDWK FRQWURO RU
DOWLWXGH DQG WUDIILF DZDUHQHVV DQG GLVHQJDJH )' VHOHFW )39 DV DYDLODEOH DQG
KDQG IO\ WKH DLUFUDIW XVLQJ UDZ GDWD RU YLVXDOO\
$7& FRPPXQLFDWLRQV
LI LQ 90&
DQGRU
x 1R DWWHPSW VKRXOG EH PDGH WR DQDO\]H RU UHFWLI\
DQ DQRPDO\ E\ UHSURJUDPPLQJ WKH $)6 RU )06 GLVHQJDJH WKH $7+5 DQG FRQWURO WKH WKUXVW
XQWLO WKH GHVLUHG IOLJKW SDWK DQGRU DLUVSHHG DUH PDQXDOO\
UHVWRUHG
x ,Q FDVH RI $3 XQFRPPDQGHG
WKH VHFRQG $3 VKRXOG EH HQJDJHG LPPHGLDWHO\ WR
GLVFRQQHFWLRQ
6XPPDU\ RI NH\ SRLQWV
UHGXFH 3)¶V ZRUNORDG LH RQO\ GXDO RU PXOWLSOH
)RU RSWLPXP XVH RI DXWRPDWLRQ WKH IROORZLQJ
IDLOXUHV PD\ DIIHFW ERWK $3V VLPXOWDQHRXVO\
VKRXOG EH SURPRWHG
x ,I FOHDUHG WR H[LW D KROGLQJ SDWWHUQ RQ D UDGDU
YHFWRU WKH KROGLQJ H[LW SURPSW VKRXOG EH SUHVVHG
x 8QGHUVWDQGLQJ WKH LQWHJUDWLRQ RI $3)' DQG
$7+5 PRGHV LH SDLULQJ RI PRGHV
RU WKH KROGLQJ SDWWHUQ FOHDUHG WR DOORZ WKH
FRUUHFW VHTXHQFLQJ RI WKH )06 IOLJKW SODQ
x 8QGHUVWDQGLQJ DOO PRGH WUDQVLWLRQ DQG UHYHUVLRQ
x 8QGHU UDGDU YHFWRUV ZKHQ LQWHUFHSWLQJ WKH ILQDO VHTXHQFHV
DSSURDFK FRXUVH LQ D VHOHFWHG KHDGLQJ RU WUDFN
PRGH LH QRW LQ 1$9 PRGH IOLJKW FUHZ VKRXOG x 8QGHUVWDQGLQJ SLORWV\VWHP LQWHUIDFHV IRU
HQVXUH WKDW )06 IOLJKW SODQ VHTXHQFHV QRUPDOO\
E\ FKHFNLQJ WKDW WKH 72 ZD\SRLQW LV FRUUHFW RQ 3LORWWRV\VWHP FRPPXQLFDWLRQ LH IRU
1' DQG )06 &'8 PRGHV HQJDJHPHQW DQG WDUJHW VHOHFWLRQV
(QVXULQJ WKDW )06 IOLJKW SODQ VHTXHQFHV FRUUHFWO\ 6\VWHPWRSLORW IHHGEDFN LH IRU PRGHV DQG
ZLWK D FRUUHFW 72 ZD\SRLQW LV HVVHQWLDO WR UH WDUJHWV FURVVFKHFN
HQJDJH WKH 1$9 PRGH LQ FDVH RI D JRDURXQG
,I )06 IOLJKW SODQ GRHV QRW VHTXHQFH FRUUHFWO\

x $ZDUHQHVV RI DYDLODEOH JXLGDQFH $3)' DQG
$7+5 VWDWXV PRGHV DUPHG RU HQJDJHG DFWLYH
FRUUHFW VHTXHQFLQJ FDQ EH UHVWRUH E\ HLWKHU
WDUJHWV
SHUIRUPLQJ D ',5 72 > D ZD\SRLQW DKHDG LQ
WKH DSSURDFK @ RU D ',5 72 ,17&37 DV x $OHUWQHVV WR DGDSW WKH OHYHO RI DXWRPDWLRQ WR WKH
DYDLODEOH RU WDVN DQGRU FLUFXPVWDQFHV RU WR UHYHUW WR KDQG
IO\LQJ PDQXDO WKUXVW FRQWURO LI UHTXLUHG
FOHDULQJ DQ XQGXH LQWHUPHGLDWH ZD\SRLQW EH
FDXWLRXV QRW WR FOHDU WKH GHVLUHG
72 ZD\SRLQW
x $GKHUHQFH WR GHVLJQ SKLORVRSK\ DQG RSHUDWLQJ
SKLORVRSK\ 623V DQG 2SHUDWLRQV *ROGHQ
5XOHV
,I D FRUUHFW 72 ZD\SRLQW FDQQRW EH UHVWRUHG WKH
1$9 PRGH VKRXOG QRW EH XVHG IRU WKH UHVW RI WKH
DSSURDFK RU IRU JRDURXQG

3DJH
$VVRFLDWHG %ULHILQJ 1RWHV

7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG
DORQJ ZLWK WKH DERYH LQIRUPDWLRQ WR FRPSOHPHQW WKLV
RYHUYLHZ RQ WKH XVH RI DXWRPDWLRQ
x 2SHUDWLQJ 3KLORVRSK\ 623V
x 2SHUDWLRQV *ROGHQ 5XOHV
x 6WDQGDUG &DOOV
5HJXODWRU\ UHIHUHQFHV
x ,&$2 ± $QQH[ 2SHUDWLRQ RI $LUFUDIW SDUW , ±
,QWHUQDWLRQDO &RPPHUFLDO WUDQVSRUW ±
$HURSODQHV $SSHQGL[
x ,&$2 ± +XPDQ )DFWRUV 7UDLQLQJ 0DQXDO

'RF
x ,&$2 ± +XPDQ )DFWRUV 'LJHVW 1R ±

2SHUDWLRQDO ,PSOLFDWLRQV RI $XWRPDWLRQ LQ
$GYDQFHG 7HFKQRORJ\ )OLJKW 'HFNV &LUFXODU

x )$5 0LQLPXP DOWLWXGHV IRU WKH XVH RI

WKH DXWRSLORW

3DJH
2SHUDWLRQV*ROGHQ5XOHV

*ROGHQ 5XOHV KDYH DOZD\V JXLGHG KXPDQ DFWLYLWLHV 7KH IROORZLQJ IDFWRUV IUHTXHQWO\ DUH LGHQWLILHG DV
FDXVDO IDFWRU LQ DSSURDFKDQGODQGLQJ DFFLGHQWV
,Q HDUO\ DYLDWLRQ GD\V WKH *ROGHQ 5XOHV GHILQHG WKH
EDVLF SULQFLSOHV RI DLUPDQVKLS
)DFWRU RI
:LWK WKH GHYHORSPHQW RI WHFKQRORJ\ LQ PRGHUQ (YHQWV
DLUFUDIW DQG ZLWK UHVHDUFK RQ PDQPDFKLQHLQWHUIDFH
DQG FUHZFRRUGLQDWLRQ *ROGHQ 5XOHV KDYH EHHQ ,QDGHTXDWH GHFLVLRQ PDNLQJ
EURDGHQHG WR HQFRPSDVV WKH SULQFLSOHV RI
LQWHUDFWLRQ ZLWK DXWRPDWLRQ DQG FUHZ UHVRXUFHV 2PLVVLRQ RI DFWLRQ RU
PDQDJHPHQW &50 LQDSSURSULDWH DFWLRQ
7KH RSHUDWLRQV *ROGHQ 5XOHV GHILQHG E\ $LUEXV ,QDGHTXDWH &50 SUDFWLFH
,QGXVWULH DVVLVW WUDLQHHV LQ PDLQWDLQLQJ WKHLU EDVLF FUHZ FRRUGLQDWLRQ FURVV
DLUPDQVKLS HYHQ DV WKH\ SURJUHVV WR LQWHJUDWHG DQG FKHFN DQG EDFNXS
DXWRPDWHG DLUFUDIW PRGHOV
7KHVH UXOHV DSSO\ ZLWK OLWWOH PRGLILFDWLRQ WR DOO $LUEXV ,QVXIILFLHQW KRUL]RQWDO RU
PRGHOV YHUWLFDO VLWXDWLRQDO DZDUHQHVV
$OWKRXJK GHYHORSHG IRU WUDLQHHV WKH *ROGHQ 5XOHV ,QDGHTXDWH RU LQVXIILFLHQW
DUH HTXDOO\ XVHIXO IRU H[SHULHQFHG OLQH SLORWV XQGHUVWDQGLQJ RI SUHYDLOLQJ
FRQGLWLRQV
*ROGHQ 5XOHV DGGUHVV DVSHFWV WKDW DUH FRQVLGHUHG
IUHTXHQW FDXVDO IDFWRUV LQ DSSURDFK DQG ODQGLQJ 6ORZ RU GHOD\HG FUHZ DFWLRQ
DFFLGHQWV )OLJKW KDQGOLQJ GLIILFXOWLHV
x ,QDGHTXDWH VLWXDWLRQDO SRVLWLRQDO DZDUHQHVV
,QFRUUHFW RU LQFRPSOHWH
x ,QFRUUHFW LQWHUDFWLRQ ZLWK DXWRPDWLRQ SLORWFRQWUROOHU
FRPPXQLFDWLRQ
x 2YHUUHOLDQFH RQ DXWRPDWLRQ DQG
,QWHUDFWLRQ ZLWK DXWRPDWLRQ
x ,QHIIHFWLYH FUHZ FURVVFKHFN DQG PXWXDO
EDFNXS 7DEOH
0RVW )UHTXHQW &DXVDO )DFWRUV

3DJH
*HQHUDO *ROGHQ 5XOHV x 1DYLJDWH
7KH IROORZLQJ HLJKW *ROGHQ 5XOHV DUH DSSOLFDEOH LQ

6HOHFW WKH GHVLUHG PRGHV IRU YHUWLFDO QDYLJDWLRQ
QRUPDO FRQGLWLRQV DQG PRUH LPSRUWDQWO\ LQ DQ\

DQG ODWHUDO QDYLJDWLRQ LH VHOHFWHG PRGHV RU
XQDQWLFLSDWHG RU DEQRUPDO HPHUJHQF\ FRQGLWLRQ

)06PDQDJHG QDYLJDWLRQ EHLQJ DZDUH RI
VXUURXQGLQJ WHUUDLQ DQG PLQLPXP VDIH DOWLWXGH
$XWRPDWHG DLUFUDIW FDQ EH IORZQ OLNH DQ\ 7KLV UXOH FDQ EH VXPPDUL]HG E\ WKH IROORZLQJ
WKUHH ³ NQRZ ZKHUH «´ VLWXDWLRQDODZDUHQHVV
RWKHU DLUFUDIW
LWHPV
7R SURPRWH WKLV UXOH HDFK WUDLQHH VKRXOG EH JLYHQ .QRZ ZKHUH \RX DUH
WKH RSSRUWXQLW\ WR IO\ WKH DLUFUDIW MXVW XVLQJ WKH VWLFN
UXGGHU DQG WKURWWOHV
.QRZ ZKHUH \RX VKRXOG EH DQG
.QRZ ZKHUH WKH WHUUDLQ DQG REVWDFOHV DUH

7KH XVH RI IOLJKW GLUHFWRU )' DXWRSLORW $3
DXWRWKURWWOHDXWRWKUXVW $7+5 DQG IOLJKW
PDQDJHPHQW V\VWHP )06 VKRXOG EH LQWURGXFHG x &RPPXQLFDWH
SURJUHVVLYHO\ DV GHILQHG E\ WKH DSSOLFDEOH WUDLQLQJ
(IIHFWLYH FUHZ FRPPXQLFDWLRQ LQYROYHV
V\OODEXV
FRPPXQLFDWLRQV EHWZHHQ IOLJKW FUHZPHPEHUV
DQG FRPPXQLFDWLRQV EHWZHHQ IOLJKW FUHZ DQG
3UDFWLFH RI KDQG IO\LQJ ZLOO LOOXVWUDWH WKDW WKH SLORW
FDELQ FUHZ
IO\LQJ 3) DOZD\V UHWDLQV WKH DXWKRULW\ DQG FDSDELOLW\
WR DGRSW
,Q DQ DEQRUPDO RU HPHUJHQF\ FRQGLWLRQ DIWHU D
x $ PRUH GLUHFW OHYHO RI DXWRPDWLRQ RU UHYHUW WR VWDEOH IOLJKW SDWK KDV EHHQ UHJDLQHG DQG WKH
DEQRUPDO RU HPHUJHQF\ FRQGLWLRQ KDV EHHQ
x +DQG IO\LQJ GLUHFWO\ FRQWUROOLQJ WKH DLUFUDIW
LGHQWLILHG WKH 3) VKRXOG LQIRUP WKH $7& RI WKH
WUDMHFWRU\ DQG HQHUJ\
SUHYDLOLQJ FRQGLWLRQ DQG RI KLVKHU LQWHQWLRQV
7R DWWUDFW WKH FRQWUROOHU¶V DWWHQWLRQ XVH WKH

)O\ 1DYLJDWH &RPPXQLFDWH DQG 0DQDJH ²
IROORZLQJ VWDQGDUG SKUDVHRORJ\ DV DSSOLFDEOH
LQ WKDW RUGHU
3DQ 3DQ ± 3DQ 3DQ ± 3DQ 3DQ RU
7DVN VKDULQJ VKRXOG EH DGDSWHG WR WKH SUHYDLOLQJ

0D\GD\ ± 0D\GD\ ± 0D\GD\
VLWXDWLRQ LH WDVN VKDULQJ IRU KDQG IO\LQJ RU ZLWK $3
HQJDJHG WDVN VKDULQJ IRU QRUPDO RSHUDWLRQ RU IRU
DEQRUPDO HPHUJHQF\ FRQGLWLRQV DV GHILQHG LQ
)&20 DQG WDVNV VKRXOG EH DFFRPSOLVKHG LQ
x 0DQDJH
DFFRUGDQFH ZLWK WKH IROORZLQJ SULRULWLHV 0DQDJLQJ WKH FRQWLQXDWLRQ RI WKH IOLJKW LV WKH
QH[W SULRULW\ WKLV LQFOXGHV
x )O\ x 0DQDJLQJ DLUFUDIW V\VWHPV HJ IXHO

PDQDJHPHQW (7236 PDQDJHPHQW HWF
3) PXVW FRQFHQWUDWH RQ IO\LQJ WKH DLUFUDIW
DQG
LH E\ FRQWUROOLQJ DQGRU PRQLWRULQJ WKH SLWFK
DWWLWXGH EDQN DQJOH DLUVSHHG WKUXVW VLGHVOLS x 3HUIRUPLQJ DSSOLFDEOH HPHUJHQF\ DQGRU
KHDGLQJ WR FDSWXUH DQG PDLQWDLQ WKH GHVLUHG DEQRUPDO SURFHGXUHV
WDUJHWV YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK
6SHFLILF *ROGHQ 5XOHV WR DVVLVW IOLJKW FUHZ LQ

31) PXVW EDFNXS WKH 3) E\ PRQLWRULQJ IOLJKW
WKHLU GHFLVLRQPDNLQJ DQG PDQDJHPHQW SURFHVV
SDUDPHWHUV DQG E\ FDOOLQJ DQ\ H[FHVVLYH
DUH SURYLGHG LQ WKH VHFRQG SDUW RI WKLV %ULHILQJ
GHYLDWLRQ
1RWH

3DJH
7KH GHVLJQ RI JODVVFRFNSLW DLUFUDIW IXOO\ VXSSRUWV &ULWLFDO RU LUUHYHUVLEOH DFWLRQV VXFK DV VHOHFWLQJ DQ
WKH DERYH IRXUVWHS VWUDWHJ\ DV VXPPDUL]HG LQ HQJLQH IXHO OHYHU PDVWHU VZLWFK RU D IXHO LVRODWLRQ
7DEOH YDOYH WR 2)) VKRXOG EH DFFRPSOLVKHG E\ WKH 31)
EXW UHTXLUH SULRU FRQILUPDWLRQ E\ WKH 3)
LH FRQILUPDWLRQ ORRS
*ROGHQ 5XOH 'LVSOD\ 8QLW
)O\ 3)' .QRZ \RXU )0$ JXLGDQFH DW DOO WLPHV

1DYLJDWH 1' 7KH )&8 DQG )06 &'8 DQG NH\ERDUG DUH WKH
SULPH LQWHUIDFHV IRU WKH FUHZ WR FRPPXQLFDWH ZLWK
&RPPXQLFDWH '&'8 DLUFUDIW V\VWHPV LH WR DUP PRGHV

PRGHV DQG WR VHW WDUJHWV
RU HQJDJH
0DQDJH (&$0 7KH 3)' SDUWLFXODUO\ WKH )0$ DQG WDUJHW V\PEROV
RQ VSHHG VFDOH DQG DOWLWXGH VFDOH DQG 1' DUH WKH
SULPH LQWHUIDFHV IRU WKH DLUFUDIW WR FRPPXQLFDWH ZLWK
7DEOH WKH FUHZ WR FRQILUP WKDW WKH DLUFUDIW V\VWHPV KDYH
*ODVVFRFNSLW 'HVLJQ 6XSSRUWV *ROGHQ 5XOHV FRUUHFWO\ DFFHSWHG WKH IOLJKW FUHZ¶V PRGH VHOHFWLRQV
DQG WDUJHW HQWULHV
$Q\ DFWLRQ RQ )&8 RU RQ )06 NH\ERDUG DQG OLQH

3UDFWLFH WDVN VKDULQJ DQG EDFNXS HDFK VHOHFW NH\V VKRXOG EH FRQILUPHG E\ FURVVFKHFNLQJ
RWKHU WKH FRUUHVSRQGLQJ DQQXQFLDWLRQ RU GDWD RQ 3)'
DQGRU 1'
7DVN VKDULQJ HIIHFWLYH FURVVFKHFN DQG EDFNXS
VKRXOG EH SUDFWLFHG LQ DOO SKDVHV RI JURXQG DQG $W DOO WLPHV WKH 3) DQG 31) VKRXOG EH DZDUH RI
IOLJKW RSHUDWLRQ LQ QRUPDO RSHUDWLRQ RU LQ DEQRUPDO
x 0RGHV DUPHG RU HQJDJHG
HPHUJHQF\ FRQGLWLRQV
x *XLGDQFH WDUJHWV VHW DQG
(PHUJHQF\ DEQRUPDO DQG QRUPDO SURFHGXUHV
LH QRUPDO FKHFNOLVWV VKRXOG EH SHUIRUPHG DV
x 0RGH WUDQVLWLRQV RU UHYHUVLRQV
GLUHFWHG E\ (&$0 DQGRU 45+ HJ
x ,Q FDVH RI DQ HPHUJHQF\ FRQGLWLRQ

&URVV FKHFN WKH DFFXUDF\ RI WKH )06 ZLWK
(PHUJHQF\ SURFHGXUH UDZ GDWD
1RUPDO FKHFNOLVW DV DSSOLFDEOH DQG
:KHQ ZLWKLQ QDYDLGV FRYHUDJH DUHD )06
$EQRUPDO SURFHGXUHV QDYLJDWLRQ DFFXUDF\ VKRXOG EH FURVVFKHFNHG
DJDLQVW QDYDLGV UDZGDWD XQOHVV DLUFUDIW LV *36
x ,Q FDVH RI DQ DEQRUPDO FRQGLWLRQ HTXLSSHG DQG *36 35,0$5< LV DYDLODEOH
$EQRUPDO SURFHGXUH GRZQ WR 67$786

)06 QDYLJDWLRQ DFFXUDF\ FDQ EH FKHFNHG E\
1RUPDO FKHFNOLVW DV DSSOLFDEOH DQG x (QWHULQJ D WXQHG 925'0( LQ WKH
5HVXPLQJ DEQRUPDO SURFHGXUH EHDULQJGLVWDQFH %5* ',67 72 ILHOG RI WKH

DSSURSULDWH )06 SDJH
7KHVH DFWLRQV VKRXOG EH DFFRPSOLVKHG LQ x &RPSDULQJ WKH UHVXOWLQJ )06 ',67 72 UHDGLQJ
DFFRUGDQFH ZLWK WKH SXEOLVKHG WDVN VKDULQJ FUHZ
ZLWK WKH '0( GLVWDQFH UHDG RQ WKH 50, RU RQ
FRRUGLQDWLRQ SULQFLSOHV DQG SKUDVHRORJ\
1' DV DSSOLFDEOH

3DJH
x &KHFNLQJ WKH GLIIHUHQFH EHWZHHQ )06 ',6 72 8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU
DQG '0( GLVWDQFH DJDLQVW WKH FULWHULD DSSOLFDEOH
WKH WDVN
IRU WKH IOLJKW SKDVH DV GHILQHG LQ 623V
2Q KLJKO\ DXWRPDWHG DQG LQWHJUDWHG DLUFUDIW VHYHUDO

,I WKH UHTXLUHG )06 QDYLJDWLRQ DFFXUDF\ FULWHULD DUH
OHYHOV RI DXWRPDWLRQ DUH DYDLODEOH WR SHUIRUP D JLYHQ
QRW DFKLHYHG UHYHUW IURP 1$9 PRGH WR VHOHFWHG
WDVN
KHDGLQJ PRGH ZLWK UHIHUHQFH WR QDYDLGV UDZGDWD
x )06 PRGHV DQG JXLGDQFH RU

6HOHFW 3) 1' WR $5& RU 526( PRGH ,I QR PDS
VKLIW LV REVHUYHG 31) PD\ NHHS 1' LQ 0$3 PRGH x 6HOHFWHG PRGHV DQG JXLGDQFH
ZLWK GLVSOD\ RI VSHHG FRQVWUDLQWV DQGRU DOWLWXGH

FRQVWUDLQWV IRU HQKDQFHG KRUL]RQWDO DQG YHUWLFDO
7KH FRUUHFW OHYHO RI DXWRPDWLRQ GHSHQGV RQ
x 7KH WDVN WR EH SHUIRUPHG
2QH KHDG XS DW DOO WLPHV VKRUWWHUP WDFWLFDO WDVN RU
ORQJWHUP VWUDWHJLF WDVN

6LJQLILFDQW FKDQJHV WR WKH )06 IOLJKW SODQ VKRXOG EH
SHUIRUPHG E\ 31) DQG FURVVFKHFNHG E\ 3) DIWHU
x 7KH IOLJKW SKDVH
WUDQVIHU RI FRQWUROV LQ RUGHU WR PDLQWDLQ RQH KHDG XS
DW DOO WLPHV IRU VXSHUYLVLQJ WKH SURJUHVV RI WKH IOLJKW HQURXWH
DQG DLUFUDIW V\VWHPV
WHUPLQDO DUHD RU
DSSURDFK DQG
:KHQ WKLQJV GRQ·W JR DV H[SHFWHG 7DNH
2YHU x 7KH WLPH DYDLODEOH
QRUPDO VHOHFWLRQ RU HQWU\ RU

,I WKH DLUFUDIW GRHV QRW IROORZ WKH GHVLUHG YHUWLFDO
IOLJKW SDWK ODWHUDO IOLJKW SDWK RU WKH VHOHFWHG WDUJHWV ODVWPLQXWH FKDQJH
DQG WLPH GRHV QRW SHUPLW DQDO\]LQJ DQG VROYLQJ WKH

REVHUYHG EHKDYLRU UHYHUW ZLWKRXW GHOD\ IURP 7KH FRUUHFW OHYHO RI DXWRPDWLRQ RIWHQ LV WKH RQH WKH
SLORW IHHOV WKH PRVW FRPIRUWDEOH ZLWK GHSHQGLQJ RQ
KLVKHU NQRZOHGJH DQG H[SHULHQFH RI WKH DLUFUDIW DQG
x )06 JXLGDQFH WR VHOHFWHG JXLGDQFH RU IURP
V\VWHPV
x 6HOHFWHG JXLGDQFH WR KDQG IO\LQJ

5HYHUVLRQ WR KDQGIO\LQJ DQG PDQXDO WKUXVWFRQWURO
PD\ EH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU WKH
SUHYDLOLQJ FRQGLWLRQV

3DJH
7KH *2/'(1 58/(6 &DUG *ROGHQ 5XOHV IRU $EQRUPDO DQG (PHUJHQF\
&RQGLWLRQV
7KH *2/'(1 58/(6 FDUG KDV EHHQ GHYHORSHG WR
SURPRWH DQG GLVVHPLQDWH WKH RSHUDWLRQV *ROGHQ
5XOHV
7KH IROORZLQJ DGGLWLRQDO UXOHV PD\ DVVLVW IOLJKW FUHZ
LQ WKHLU GHFLVLRQ PDNLQJ ZKHQ LQ DQ DEQRUPDO RU
HPHUJHQF\ FRQGLWLRQ EXW DOVR LI EHLQJ IDFHG ZLWK D
7KH FDUG LV SURYLGHG WR DOO WUDLQHHV DWWHQGLQJ D IOLJKW FRQGLWLRQ RU FLUFXPVWDQFH WKDW LV QRW FRYHUHG E\ WKH
FUHZWUDLQLQJ FRXUVH DW DQ $LUEXV 7UDLQLQJ &HQWHU SXEOLVKHG SURFHGXUHV
LH LQ 7RXORXVH 0LDPL DQG %HLMLQJ
8QGHUVWDQG WKH SUHYDLOLQJ FRQGLWLRQ EHIRUH

DFWLQJ
,QFRUUHFW GHFLVLRQV RIWHQ DUH WKH UHVXOW RI DQ
LQFRUUHFW UHFRJQLWLRQ DQG LGHQWLILFDWLRQ RI WKH DFWXDO
SUHYDLOLQJ FRQGLWLRQ
$VVHVV ULVNV DQG WLPH SUHVVXUHV

7DNH WLPH WR PDNH WLPH E\
x 'HOD\LQJ DFWLRQV ZKHQ SRVVLEOH HJ GXULQJ

WDNHRII DQG ILQDO DSSURDFK DQGRU
x 5HTXHVWLQJ HQWHULQJ D KROGLQJ SDWWHUQ RU

UHTXHVWLQJ GHOD\LQJ YHFWRUV DV DSSURSULDWH
5HYLHZ DQG HYDOXDWH WKH DYDLODEOH RSWLRQV

&RQVLGHU ZHDWKHU FRQGLWLRQV FUHZ SUHSDUHGQHVV
W\SH RI RSHUDWLRQ DLUSRUW SUR[LPLW\ DQG VHOI
FRQILGHQFH ZKHQ VHOHFWLQJ WKH SUHIHUUHG RSWLRQ
,QFOXGH DOO IOLJKW FUHZPHPEHUV FDELQ FUHZ $7&

DQG FRPSDQ\ PDLQWHQDQFH DV UHTXLUHG LQ WKLV
HYDOXDWLRQ
&RQVLGHU DOO LPSOLFDWLRQV EHIRUH GHFLGLQJ DQG SODQ

IRU FRQWLQJHQFLHV
)LJXUH
&RQVLGHU DOO WKH DVSHFWV RI WKH FRQWLQXDWLRQ RI WKH
*ROGHQ 5XOHV &DUG IOLJKW XQWLO ODQGLQJ DQG UHDFKLQJ D FRPSOHWH VWRS

3DJH
0DWFK WKH UHVSRQVH WR WKH VLWXDWLRQ 6XPPDU\ RI .H\ 3RLQWV

$Q HPHUJHQF\ FRQGLWLRQ UHTXLUHV DQ LPPHGLDWH *ROGHQ 5XOHV FRQVWLWXWH D VHW RI NH\ SRLQWV IRU VDIH
DFWLRQ WKLV GRHV QRW PHDQ D UXVKHG DFWLRQ ZKHUHDV RSHUDWLRQ XQGHU QRUPDO DEQRUPDO DQG HPHUJHQF\
DEQRUPDO FRQGLWLRQV PD\ WROHUDWH D GHOD\HG DFWLRQ FRQGLWLRQV
,I RQO\ RQH OHVVRQ ZHUH WR EH OHDUQHG IURP WKH VHW RI
0DQDJH ZRUNORDG *ROGHQ 5XOHV WKH IROORZLQJ LV SURSRVHG

:KDWHYHU WKH SUHYDLOLQJ FRQGLWLRQV DOZD\V HQVXUH
$GKHUH WR WKH GHILQHG WDVN VKDULQJ IRU DEQRUPDO
HPHUJHQF\ FRQGLWLRQV WR UHGXFH ZRUNORDG DQG WKDW RQH SLORW LV FRQWUROOLQJ DQG PRQLWRULQJ WKH
RSWLPL]H IOLJKW FUHZ UHVRXUFHV IOLJKW SDWK RI WKH DLUFUDIW
8VH $3$7+5 LI DYDLODEOH WR DOOHYLDWH WKH 3)

ZRUNORDG $VVRFLDWHG %ULHILQJ 1RWHV
8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU WKH WDVN DQG
7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHIHUUHG WR IRU
FLUFXPVWDQFHV
IXUWKHU LOOXVWUDWLQJ DQG GHYHORSLQJ WKH DERYH
LQIRUPDWLRQ
&UHDWH D VKDUHG SUREOHP PRGHO ZLWK RWKHU x 2SHUDWLQJ 3KLORVRSK\ 623V
FUHZPHPEHUV E\ FRPPXQLFDWLQJ x 2SWLPXP 8VH RI $XWRPDWLRQ
&RPPXQLFDWH ZLWK RWKHU FUHZPHPEHUV WR FUHDWH D x 8VH RI 1RUPDO &KHFNOLVWV

VKDUHG XQGHUVWDQGLQJ RI
x &50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ
x 3UHYDLOLQJ FRQGLWLRQV DQG $FFLGHQWV
x 3ODQQHG DFWLRQV
&UHDWLQJ D VKDUHG PRGHO DOORZV FUHZPHPEHUV WR 5HJXODWRU\ 5HIHUHQFHV

ZRUN ZLWK D FRPPRQ UHIHUHQFH WRZDUGV D FRPPRQ
DQG ZHOOXQGHUVWRRG REMHFWLYH
'RF
x )$$ ± $& ± $HURQDXWLFDO 'HFLVLRQ
$SSO\ UHFRPPHQGHG SURFHGXUHV DQG RWKHU 0DNLQJ
DJUHHG DFWLRQV
8QGHUVWDQG WKH UHDVRQV DQG LPSOLFDWLRQV RI DQ\
DFWLRQ EHIRUH DFWLQJ DQG FKHFN WKH UHVXOWV RI HDFK
DFWLRQ EHIRUH SURFHHGLQJ ZLWK WKH QH[W VWHS
%HZDUH RI LUUHYHUVLEOH DFWLRQV LH DSSO\ VWULFW

FRQILUPDWLRQ DQG FURVVFKHFN EHIRUH DFWLQJ

3DJH
6WDQGDUG&DOOV
,QWURGXFWLRQ 8VH RI VWDQGDUG FDOOV DQG DFNQRZOHGJHPHQWV

UHGXFHV WKH ULVN RI WDFWLFDO VKRUWWHUP GHFLVLRQ
6WDQGDUG SKUDVHRORJ\ LV HVVHQWLDO WR HQVXUH PDNLQJ HUURUV HJ LQ VHOHFWLQJ PRGHV VHWWLQJ
HIIHFWLYH FUHZ FRPPXQLFDWLRQ SDUWLFXODUO\ LQ WRGD\¶V WDUJHWV RU VHOHFWLQJ DLUFUDIW FRQILJXUDWLRQV
RSHUDWLQJ HQYLURQPHQW ZKLFK LQFUHDVLQJO\ IHDWXUHV
x 7ZRFUHZPHPEHU RSHUDWLRQ DQG 7KH LPSRUWDQFH RI XVLQJ VWDQGDUG FDOOV LQFUHDVHV
x ,QWHUQDWLRQDO DQG ZRUOGZLGH FRQWH[WV LQYROYLQJ
ZLWK LQFUHDVLQJ ZRUNORDG RU IOLJKW SKDVH FULWLFDOLW\
FUHZPHPEHUV IURP GLIIHUHQW FXOWXUHV DQG ZLWK
GLIIHUHQW QDWLYH ODQJXDJHV 6WDQGDUG FDOOV VKRXOG EH SUDFWLFDO FRQFLVH
XQDPELJXRXV DQG FRQVLVWHQW ZLWK WKH DLUFUDIW GHVLJQ
6WDQGDUG FDOOV DUH LQWHQGHG DQG GHVLJQHG WR DQG RSHUDWLQJ SKLORVRSK\
HQKDQFH WKH IOLJKWFUHZ VLWXDWLRQDO DZDUHQHVV
LH LQFOXGLQJ WKH VWDWXV DQG RSHUDWLRQ RI DLUFUDIW 6WDQGDUG FDOOV VKRXOG EH LQFOXGHG LQ WKH IORZ
V\VWHPV VHTXHQFH RI FRPSDQ\¶ 623V DQG VKRXOG EH
6WDQGDUG FDOOV PD\ YDU\ DPRQJ LOOXVWUDWHG LQ WKH )OLJKW 3DWWHUQV SXEOLVKHG LQ WKH
FRPSDQ\¶ $20 RU 45+ DV DSSOLFDEOH
x $LUFUDIW PRGHOV EDVHG XSRQ IOLJKWGHFN GHVLJQ
DQG V\VWHPV LQWHUIDFHV RU &RPPDQG DQG UHVSRQVH FDOOV VKRXOG EH SHUIRUPHG
x $LUOLQHV WR VXLW WKHLU RSHUDWLQJ SKLORVRSK\ LQ DFFRUGDQFH ZLWK WKH GHILQHG 3) 31) WDVN
623V VKDULQJ LH WDVN VKDULQJ IRU KDQG IO\LQJ DQG IRU
DXWRSLORW RSHUDWLRQ WDVN VKDULQJ IRU QRUPDO
RSHUDWLRQ DQG IRU DEQRUPDO HPHUJHQF\ FRQGLWLRQ
6WDWLVWLFDO 'DWD
,QVXIILFLHQW KRUL]RQWDO RU YHUWLFDO VLWXDWLRQDO 1HYHUWKHOHVV LI D FDOO LV RPLWWHG E\ RQH
DZDUHQHVV RU LQDGHTXDWH XQGHUVWDQGLQJ RI FUHZPHPEHU WKH RWKHU FUHZPHPEHU VKRXOG
SUHYDLOLQJ FRQGLWLRQV LV D FDXVDO IDFWRU LQ PRUH WKDQ SHUIRUP WKH FDOO SHU JRRG FUHZ UHVRXUFH
RI DSSURDFKDQGODQGLQJ DFFLGHQWV PDQDJHPHQW &50 SUDFWLFH
7KH RWKHU FUHZPHPEHU VKRXOG DFFRPSOLVK WKH
8VH RI 6WDQGDUG &DOOV UHTXHVWHG FRPPDQG RU YHULI\ WKH UHTXHVWHG
FRQGLWLRQ DQG UHVSRQG DFFRUGLQJO\
6WDQGDUG FDOOV VKRXOG EH GHILQHG WR EH DOHUWLQJ WR
EH 7KH DEVHQFH RI D VWDQGDUG FDOO DW WKH DSSURSULDWH
x &OHDUO\ LGHQWLILHG E\ WKH 3) RU 31) DQG
WLPH RU WKH DEVHQFH RI DFNQRZOHGJHPHQW PD\ EH
DQ LQGLFDWLRQ RI D V\VWHP RU LQGLFDWLRQ PDOIXQFWLRQ
x 'LVWLQJXLVKHG IURP RWKHU LQWUDFRFNSLW RU $7& RU PD\ LQGLFDWH D SRVVLEOH LQFDSDFLWDWLRQ RI WKH
FRPPXQLFDWLRQV RWKHU FUHZPHPEHU
6WDQGDUG &DOOV
3DJH
6WDQGDUG FDOOV DUH XVHG WR x 21 2))
x *LYH D FRPPDQG WDVN GHOHJDWLRQ RU WUDQVIHU 21 RU 2)) IROORZLQJ WKH QDPH RI D V\VWHP LV
DQ LQIRUPDWLRQ HLWKHU
D FRPPDQG IRU WKH RWKHU SLORW WR VHOHFW

x $FNQRZOHGJH D FRPPDQG RU DQ LQIRUPDWLRQ
GHVHOHFW WKH UHODWHG V\VWHP RU
WUDQVIHU
D UHVSRQVH FRQILUPLQJ WKH VWDWXV RI WKH
x *LYH D UHVSRQVH RU DVN D TXHVWLRQ IHHGEDFN V\VWHP
x &DOORXW D FKDQJH RI LQGLFDWLRQ HJ D PRGH

WUDQVLWLRQ RU UHYHUVLRQ RU
6SHFLILF 6WDQGDUG &DOOV
x ,GHQWLI\ D VSHFLILF HYHQW HJ FURVVLQJ DQ $SSURSULDWH VWDQGDUG FDOOV VKRXOG EH GHILQHG IRU WKH
DOWLWXGH RU D IOLJKW OHYHO IROORZLQJ HYHQWV
x )OLJKWFUHZJURXQG PHFKDQLFV FRPPXQLFDWLRQV

'HILQLQJ *HQHULF 6WDQGDUG &DOOV
x (QJLQH VWDUW VHTXHQFH
7KH IROORZLQJ JHQHULF VWDQGDUG FDOOV RIWHQ DUH XVHG

x 6SHFLILF HYHQWPDUNHUV DORQJ WKH WDNHRII SKDVH
WR H[SUHVV D FRPPDQG RU UHVSRQVH
x /DQGLQJ JHDU DQG VODWVIODSV VHOHFWLRQ

x &KHFN RU 9HULI\ UHWUDFWLRQ RU H[WHQVLRQ
D FRPPDQG IRU WKH RWKHU SLORW WR FKHFN DQ

x ,QLWLDWLRQ LQWHUUXSWLRQ UHVXPSWLRQ DQG
LWHP
FRPSOHWLRQ RI QRUPDO FKHFNOLVWV
x &KHFNHG x ,QLWLDWLRQ VHTXHQFLQJ LQWHUUXSWLRQ UHVXPSWLRQ

DQG FRPSOHWLRQ RI DEQRUPDO DQG HPHUJHQF\
D FRQILUPDWLRQ WKDW DQ LWHP KDV EHHQ
FKHFNOLVWV SDSHU RU HOHFWURQLF FKHFNOLVW
FKHFNHG
x 0RGH WUDQVLWLRQV DQG UHYHUVLRQV LH )0$

x &URVVFKHFNHG
FKDQJHV
D FDOO UHVSRQVH FRQILUPLQJ WKDW DQ

LQIRUPDWLRQ KDV EHHQ FKHFNHG DW ERWK SLORW
x &KDQJLQJ WKH DOWLPHWHU VHWWLQJ
VWDWLRQV
x $SSURDFKLQJ WKH FOHDUHG DOWLWXGH RU )/
x 6HW x 7&$6 7$ RU 5$ HYHQWV
D FRPPDQG IRU WKH RWKHU SLORW WR VHW D WDUJHW

x 3)31) WUDQVIHU RI FRQWUROV
YDOXH RU D FRQILJXUDWLRQ
x ([FHVVLYHGHYLDWLRQ RI D IOLJKW SDUDPHWHU

x $UP
x 6SHFLILF SRLQWV DORQJ WKH LQVWUXPHQW DSSURDFK
D FRPPDQG IRU WKH RWKHU SLORW WR DUP DQ
SURFHGXUH
$3)' PRGH RU WR DUP D V\VWHP
x $SSURDFKLQJ DQG UHDFKLQJ PLQLPXPV

x (QJDJH
x $FTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG
D FRPPDQG IRU WKH RWKHU SLORW WR HQJDJH DQ
$3)' PRGH RU WR HQJDJH D V\VWHP x /DQGLQJ RU JRDURXQG GHFLVLRQ
6WDQGDUG &DOOV
3DJH
8VH RI VWDQGDUG FDOOV LV RI SDUDPRXQW LPSRUWDQFH :KHQ GHILQLQJ VWDQGDUG FDOOV VWDQGDUGL]DWLRQ DQG
IRU RSWLPXP XVH RI DXWRPDWLRQ LH IRU DZDUHQHVV RSHUDWLRQDO HIILFLHQF\ VKRXOG EH FDUHIXOO\ EDODQFHG
RI DUPLQJ RU HQJDJHPHQW RI PRGHV E\ FDOOLQJ )0$
FKDQJHV WDUJHW VHOHFWLRQV )06 HQWULHV «
x 7KH VWDQGDUG FDOOV VKRXOG WULJJHU LPPHGLDWHO\
WKH TXHVWLRQ ³ ZKDW GR , ZDQW WR IO\ QRZ " ³ DQG 6WDQGDUG &DOOV HQVXUH HIIHFWLYH FUHZ LQWHUDFWLRQ DQG
WKXV FOHDUO\ LQGLFDWHV ZKLFK FRPPXQLFDWLRQ
PRGH WKH SLORW ZLVKHV WR DUP RU HQJDJH

7KH &DOO &RPPDQG DQG WKH 5HVSRQVH
DQGRU
$FNQRZOHGJHPHQW DUH RI HTXDO LPSRUWDQFH WR
WDUJHW WKH SLORW ZLVKHV WR VHW JXDUDQWHH D WLPHO\ DFWLRQ RU FRUUHFWLRQ
:KHQ WKH SLORW¶V 3) LQWHQWLRQ LV FOHDUO\

WUDQVPLWWHG WR WKH RWKHU SLORW 31) WKH VWDQGDUG $VVRFLDWHG %ULHILQJ 1RWHV
FDOO ZLOO DOVR
7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHYLHZHG DORQJ
IDFLOLWDWH WKH FURVVFKHFN RI WKH )0$ DQG
ZLWK WKH DERYH LQIRUPDWLRQ LQ RUGHU WR H[SDQG D
3)'1' DV DSSOLFDEOH DQG
SDUWLFXODU WRSLF
IDFLOLWDWH WKH FURVVFKHFN DQG EDFNXS
EHWZHHQ ERWK SLORWV
x 2SHUDWLQJ 3KLORVRSK\ ² 623V
x 2SWLPXP 8VH RI $XWRPDWLRQ

6WDQGDUG FDOOV VKRXOG EH GHILQHG IRU FRFNSLW FUHZ
FDELQ FUHZ FRPPXQLFDWLRQV LQ ERWK

x 1RUPDO FRQGLWLRQV GHSDUWXUH DQG DUULYDO DQG
x (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV
x $EQRUPDO RU HPHUJHQF\ VLWXDWLRQV HJ FDELQ
x ,QWUDFRFNSLW &RPPXQLFDWLRQV ²
GHSUHVVXUL]DWLRQ RQJURXQG HPHUJHQF\
HYDFXDWLRQ FUHZ LQFDSDFLWDWLRQ IRUFHG ODQGLQJ
0DQDJLQJ ,QWHUUXSWLRQV DQG
RU GLWFKLQJ HWF 'LVWUDFWLRQV
+DUPRQL]DWLRQ RI 6WDQGDUG &DOOV 5HJXODWRU\ UHIHUHQFHV

x ,&$2 ± $QQH[ ± 2SHUDWLRQ RI $LUFUDIW 3DUW , ±
7KH KDUPRQL]DWLRQ RI VWDQGDUG FDOOV DFURVV YDULRXV
DLUFUDIW IOHHWV IURP WKH VDPH RU IURP GLIIHUHQW
$HURSODQHV $SSHQGL[
DLUFUDIW PDQXIDFWXUHUV LV GHVLUDEOH EXW VKRXOG QRW
EH DQ RYHUULGLQJ GHPDQG x ,&$2 ± 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO
'RF
6WDQGDUG FDOOV DFURVV IOHHWV DUH RQO\ HVVHQWLDO IRU
FUHZPHPEHUV RSHUDWLQJ GLIIHUHQW IOHHWV x -$5236 DQG DVVRFLDWHG $SSHQGL[ ±
LH IRU FRPPXQLFDWLRQV EHWZHHQ FRFNSLW DQG FDELQ 2SHUDWLRQV 0DQXDOV ± VWUXFWXUH DQG FRQWHQWV
RU EHWZHHQ FRFNSLW DQG JURXQG
:LWKLQ WKH FRFNSLW SLORWV QHHG WR XVH VWDQGDUG FDOOV 2WKHU 5HIHUHQFHV
DSSURSULDWH IRU WKH IOLJKWGHFN DQG V\VWHPV GHVLJQ
x 86 1DWLRQDO 7UDQVSRUWDWLRQ 6DIHW\ %RDUG
176% ± 6SHFLDO 5HSRUW 176%$$6 ±
:LWK WKH H[FHSWLRQ RI DLUFUDIW PRGHOV ZLWK FRFNSLW
6SHFLDO 6WXG\ )OLJKWFUHZ &RRUGLQDWLRQ
FRPPRQDOLW\ FRFNSLW OD\RXWV DQG V\VWHPV DUH QRW
3URFHGXUHV LQ $LU &DUULHU ,QVWUXPHQW /DQGLQJ
WKH VDPH DQG WKXV VLPLODULWLHV DV ZHOO DV
6\VWHP $SSURDFK $FFLGHQWV
GLIIHUHQFHV VKRXOG EH UHFRJQL]HG DOLNH
6WDQGDUG &DOOV
3DJH
1RUPDO&KHFNOLVWV
1RUPDO FKHFNOLVWV DUH QRW UHDGDQGGR OLVWV DQG

VKRXOG EH DFFRPSOLVKHG DIWHU SHUIRUPLQJ WKH IORZ RI
,QWURGXFWLRQ
6WULFW DGKHUHQFH WR VXLWDEOH VWDQGDUG RSHUDWLQJ 623V DFWLRQV

SURFHGXUHV 623V DQG DVVRFLDWHG QRUPDO
FKHFNOLVWV LV D PDMRU FRQWULEXWLRQ WR SUHYHQWLQJ DQG 7KH FRUUHFW FRPSOHWLRQ RI QRUPDO FKHFNOLVWV LV
UHGXFLQJ DSSURDFKDQGODQGLQJ DFFLGHQWV HVVHQWLDO IRU VDIH RSHUDWLRQ SDUWLFXODUO\ IRU WDNHRII
DQG GXULQJ DSSURDFK DQG ODQGLQJ
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI
x 7KH VFRSH DQG XVH RI QRUPDO FKHFNOLVWV DQG
)RU DQ HIIHFWLYH XVH RI QRUPDO FKHFNOLVWV WKH
IROORZLQJ JHQHULF UXOHV VKRXOG EH FRQVLGHUHG
x 7KH IDFWRUV DQG FRQGLWLRQV WKDW PD\ DIIHFW WKH
QRUPDO IORZ DQG FRPSOHWLRQ RI QRUPDO ,QLWLDWLQJ QRUPDO FKHFNOLVWV
FKHFNOLVWV 1RUPDO FKHFNOLVWV VKRXOG EH LQLWLDWHG FDOOHG E\ WKH

SLORW IO\LQJ 3) DQG UHDG E\ WKH SLORW QRW IO\LQJ
6WDWLVWLFDO 'DWD 31)
7KH RPLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ ,I WKH 3) IDLOV WR LQLWLDWH D QRUPDO FKHFNOLVW WKH 31)
LV WKH ODUJHVW SULPDU\ FDXVDO IDFWRU LQ DSSURDFKDQG VKRXOG VXJJHVW WKH LQLWLDWLRQ RI WKH FKHFNOLVW
ODQGLQJ DFFLGHQWV E\ DSSO\LQJ JRRG &50 SUDFWLFH
2PLVVLRQ RI DQ DFWLRQ RU LQDSSURSULDWH DFWLRQ LV 1RUPDO FKHFNOLVWV VKRXOG EH FDOOHG LQ D WLPHO\
PDQQHU GXULQJ ORZZRUNORDG SHULRGV FRQGLWLRQV
x $ FDXVDO IDFWRU DORQJ ZLWK RWKHU FDXVDO IDFWRUV SHUPLWWLQJ WR SUHYHQW DQ\ UXVK RU LQWHUUXSWLRQ WKDW
LQ RI IDWDO DSSURDFKDQGODQGLQJ DFFLGHQWV FRXOG GHIHDW WKH VDIHW\ SXUSRVH RI WKH QRUPDO
DQG FKHFNOLVWV
x $ IDFWRU WR VRPH GHJUHH LQ RI DOO
DSSURDFKDQGODQGLQJ HYHQWV 7LPH DQG ZRUNORDG PDQDJHPHQW LH DYDLODELOLW\ RI
RWKHU FUHZPHPEHU DUH NH\ IDFWRUV LQ WKH LQLWLDWLRQ
DQG HIIHFWLYH FRQGXFW RI QRUPDO FKHFNOLVWV
8VH RI 1RUPDO &KHFNOLVWV
623V VKRXOG EH DFFRPSOLVKHG E\ UHFDOO XVLQJ D &RQGXFWLQJ QRUPDO FKHFNOLVWV
GHILQHG IORZ SDWWHUQ IRU HDFK FRFNSLW SDQHO VDIHW\ 1RUPDO FKHFNOLVWV DUH EDVHG RQ WKH ³FKDOOHQJH DQG
FULWLFDO SRLQWV LH SULPDULO\ LWHPV UHODWHG WR DLUFUDIW UHVSRQVH³ FRQFHSW
FRQILJXUDWLRQ VKRXOG EH FURVVFKHFNHG ZLWK
UHIHUHQFH WR 1RUPDO &KHFNOLVWV &ULWLFDO LWHPV UHTXLUH UHVSRQVH E\ WKH 3) VRPH
1RUPDO FKHFNOLVWV HQKDQFH IOLJKW VDIHW\ E\ SURYLGLQJ OHVVFULWLFDO LWHPV PD\ EH ERWK FKDOOHQJHG DQG
DQ RSSRUWXQLW\ WR FRQILUP RU FRUUHFW WKH V\VWHPV DQG UHVSRQGHG WR E\ WKH 31) DORQH
DLUFUDIW FRQILJXUDWLRQ IRU FULWLFDO LWHPV

3DJH
7R HQKDQFH FRPPXQLFDWLRQ DQG XQGHUVWDQGLQJ 7UDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ DOVR
EHWZHHQ FUHZPHPEHUV WKH IROORZLQJ VWDQGDUG UXOHV SURYLGH D XQLTXH RSSRUWXQLW\ WR GLVFXVV WKH UHDVRQV
DQG SKUDVHRORJ\ VKRXOG EH XVHG DW DOO WLPHV IRU WKH UXOHV DQG SURFHGXUHV DQG WR GLVFXVV WKH
FRQVHTXHQFHV RI IDLOLQJ WR FRPSO\ ZLWK WKHP
x 7KH UHVSRQGLQJ FUHZ PHPEHU VKRXOG UHVSRQG
WR WKH FKDOOHQJH RQO\ DIWHU KDYLQJ FKHFNHG RU
&RQYHUVHO\ DOORZLQJ D UHOD[HG DGKHUHQFH WR 623V
FRUUHFWHG WKH UHTXLUHG FRQILJXUDWLRQ
DQGRU D UHOD[HG XVH RI QRUPDO FKHFNOLVWV GXULQJ
x ,I DFKLHYLQJ WKH UHTXLUHG FRQILJXUDWLRQ LV QRW WUDQVLWLRQ RU UHFXUUHQW VLPXODWRU WUDLQLQJ PD\
SRVVLEOH WKH UHVSRQGLQJ FUHZPHPEHU VKRXOG HQFRXUDJH FRUUHVSRQGLQJ GHYLDWLRQV GXULQJ OLQH
DQQRXQFH WKH DFWXDO FRQILJXUDWLRQ RSHUDWLRQ
x ,Q DOO FDVHV WKH FKDOOHQJLQJ FUHZPHPEHU /LQH FKHFNV DQG OLQH DXGLWV VKRXOG UHLQIRUFH VWULFW
VKRXOG ZDLW IRU D SRVLWLYH UHVSRQVH DQG VKRXOG DGKHUHQFH WR 623V DQG 1RUPDO &KHFNOLVWV
FURVVFKHFN WKH YDOLGLW\ RI WKH UHVSRQVH DV
UHTXLUHG EHIRUH PRYLQJ WR WKH QH[W LWHP DQG
x 7KH 31) VKRXOG YHUEDOL]H WKH FRPSOHWLRQ RI WKH )DFWRUV $IIHFWLQJ 1RUPDO &KHFNOLVWV
FKHFNOLVW E\ FDOOLQJ ³ >«@ FKHFNOLVW FRPSOHWH´
7R HQVXUH HIIHFWLYH FRPSOLDQFH ZLWK SXEOLVKHG
QRUPDO FKHFNOLVWV LW LV LPSRUWDQW WR XQGHUVWDQG ZK\
$$$ IDPLOLHV IHDWXUH HOHFWURQLF QRUPDO SLORWV VRPHWLPHV RPLW SDUWLDOO\ RU FRPSOHWHO\ D
FKHFNOLVWV LH 7$.(2)) DQG /$1',1* 0(02 QRUPDO FKHFNOLVW
WKDW DOORZ D SRVLWLYH LGHQWLILFDWLRQ RI
3LORWV UDUHO\ RPLW WKH SHUIRUPDQFH RI D QRUPDO

x ,WHPV EHLQJ FRPSOHWHG DQG
FKHFNOLVW LQWHQWLRQDOO\ VXFK D GHYLDWLRQ IURP 623V
x ,WHPV VWLOO WR EH SHUIRUPHG EOXH FRORU FRGLQJ RIWHQ LV WKH UHVXOW RI RSHUDWLRQDO FLUFXPVWDQFHV WKDW
GLVUXSW WKH QRUPDO IORZ RI FRFNSLW GXWLHV
7KH IROORZLQJ IDFWRUV DQG FRQGLWLRQV RIWHQ DUH FLWHG

,QWHUUXSWLQJ DQG UHVXPLQJ QRUPDO FKHFNOLVWV
LQ GLVFXVVLQJ WKH FRPSOHWH RU SDUWLDO QRQ
SHUIRUPDQFH RI D QRUPDO FKHFNOLVW
,I WKH IORZ RI D QRUPDO FKHFNOLVW QHHGV WR EH
LQWHUUXSWHG IRU DQ\ UHDVRQ WKH 3) VKRXOG DQQRXQFH x 2XWRISKDVH WLPH VFDOH ZKHQHYHU D IDFWRU
D IRUPDO DQG H[SOLFLW KROG VXFK DV ³KROG VWRS VXFK DV WDLO ZLQG RU D V\VWHP PDOIXQFWLRQ
FKHFNOLVW DW >LWHP@ ³ PRGLILHV WKH WLPHVFDOH RI WKH DSSURDFK RU WKH
RFFXUUHQFH RI WKH WULJJHUHYHQW IRU WKH LQLWLDWLRQ
$Q H[SOLFLW FDOO VXFK DV ³UHVXPH FRQWLQXH FKHFNOLVW RI WKH QRUPDO FKHFNOLVW
DW >LWHP@ ³ VKRXOG EH PDGH
x 'LVWUDFWLRQV HJ GXH WR LQWUDFRFNSLW DFWLYLWLHV
8SRQ UHVXPLQJ WKH QRUPDO FKHFNOLVW DIWHU DQ

LQWHUUXSWLRQ WKH ODVW NQRZQ FRPSOHWHG LWHP VKRXOG x ,QWHUUXSWLRQV HJ GXH WR SLORW FRQWUROOHU
EH UHSHDWHG DV DQ RYHUODS ± WR SUHYHQW DQRWKHU FRPPXQLFDWLRQV
LWHP IURP EHLQJ RPLWWHG
x 7DVN VDWXUDWLRQ LH LQDGHTXDWH PXOWLWDVNLQJ
DELOLW\ RU WDVN RYHUORDG
7KH 623V LQ WKH DSSOLFDEOH )&20 DQG 45+
SURYLGH W\SHUHODWHG LQIRUPDWLRQ x ,QFRUUHFW PDQDJHPHQW RI SULRULWLHV LH
DEVHQFH RI GHFLVLRQPDNLQJ PRGHO IRU WLPH
FULWLFDO VLWXDWLRQV
7UDLQLQJ $VSHFWV x 5HGXFHG DWWHQWLRQ WXQQHO YLVLRQ LQ DEQRUPDO RU
KLJKZRUNORDG FRQGLWLRQV
'LVFLSOLQHG XVH RI 623V DQG QRUPDO FKHFNOLVWV
VKRXOG EHJLQ GXULQJ WKH WUDQVLWLRQ WUDLQLQJ FRXUVH x ,QFRUUHFW &50 WHFKQLTXHV DEVHQFH RI HIIHFWLYH
EHFDXVH KDELWV DQG URXWLQHV DFTXLUHG GXULQJ FURVVFKHFN FUHZ FRRUGLQDWLRQ DQGRU EDFNXS
WUDQVLWLRQ WUDLQLQJ KDYH D UHFRJQL]HG ODVWLQJ HIIHFW
x 2YHUUHOLDQFH RQ PHPRU\ RYHUFRQILGHQFH

3DJH
x /HVVWKDQRSWLPXP FKHFNOLVW FRQWHQW DQGRU 5HJXODWRU\ UHIHUHQFHV

WDVN VKDULQJ DQGRU IRUPDW DQG

,QWHUQDWLRQDO &RPPHUFLDO $LU 7UDQVSRUW ±
QRUPDO FKHFNOLVWV GXULQJ WUDQVLWLRQ WUDLQLQJ DQG
$HURSODQHV DQG $SSHQGL[
UHFXUUHQW WUDLQLQJ
x ,&$2 ± 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV ±

$LUFUDIW RSHUDWLRQV 3$16236 'RF
6XPPDU\ RI .H\ 3RLQWV 9ROXPH , ± )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW
1R DSSOLFDEOH 1RY
,QLWLDWLRQ DQG FRPSOHWLQJ QRUPDO FKHFNOLVWV LQ D
WLPHO\ PDQQHU LV WKH PRVW HIIHFWLYH PHDQV RI x ,&$2 ± 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO
SUHYHQWLQJ WKH RPLVVLRQ RI DFWLRQV RU SUHYHQWLQJ 'RF
LQDSSURSULDWH DFWLRQV

([SOLFLW FDOOV VKRXOG EH GHILQHG LQ WKH 623V IRU WKH 'RF
LQWHUUXSWLRQ KROG DQG UHVXPSWLRQ FRQWLQXDWLRQ RI
D QRUPDO FKHFNOLVW LH LQ FDVH RI LQWHUUXSWLRQ RU
x )$5 ± ,QVWUXPHQW DQG (TXLSPHQW
GLVWUDFWLRQ
5HTXLUHPHQW &RFNSLW &KHFN 3URFHGXUH IRU
QRUPDO DQG QRQQRUPDO FRQGLWLRQV
'LVFLSOLQHG XVH RI QRUPDO FKHFNOLVWV VKRXOG EH
x +LJKOLJKWHG DW DOO VWDJHV RI LQLWLDO WUDQVLWLRQ DQG x -$5236 DQG DVVRFLDWHG $SSHQGL[ ±
OLQH WUDLQLQJ DQG 2SHUDWLRQV 0DQXDOV ± 6WUXFWXUH DQG &RQWHQWV
x (QIRUFHG DW WKH RSSRUWXQLW\ RI DOO FKHFNV DQG

DXGLWV SHUIRUPHG GXULQJ OLQH RSHUDWLRQ

7KH IROORZLQJ %ULHILQJ 1RWHV PD\ EH UHYLHZHG LQ
DVVRFLDWLRQ ZLWK WKH DERYH LQIRUPDWLRQ WR FRPSOHWH
WKH RYHUYLHZ RI VWDQGDUG RSHUDWLQJ SURFHGXUHV
x 2SHUDWLRQDO *ROGHQ 5XOHV
x 6WDQGDUG &DOOV

'LVWUDFWLRQV

3DJH
$SSURDFKDQG*RDURXQG%ULHILQJV
7KH VW\OH DQG WRQH RI WKH EULHILQJ SOD\ DQ LPSRUWDQW

UROH LQWHUDFWLYH EULHILQJV ± LH FRQILUPLQJ WKH
,QWURGXFWLRQ
7R HQVXUH PXWXDO XQGHUVWDQGLQJ DQG HIIHFWLYH DJUHHPHQW DQG XQGHUVWDQGLQJ RI WKH 31) DIWHU HDFK
FRRSHUDWLRQ DPRQJ FUHZPHPEHUV DQG ZLWK $7& LQ SKDVH RI WKH EULHILQJ ± SURYLGHV PRUH HIIHFWLYH DQG
GHSWK DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH SURGXFWLYH EULHILQJV WKDQ DQ XQLQWHUUXSWHG UHFLWDWLRQ
FRQGXFWHG RQ HDFK IOLJKW WHUPLQDWHG E\ WKH ILQDO TXHU\ ³ $Q\ TXHVWLRQ " ³
$ WKRURXJK EULHILQJ VKRXOG EH FRQGXFWHG UHJDUGOHVV ,QWHUDFWLYH EULHILQJV EHWWHU IXOILOO DQ LPSRUWDQW
RI SXUSRVH RI WKH EULHILQJV WR SURYLGH WKH 3) DQG 31)
x +RZ IDPLOLDU WKH GHVWLQDWLRQ DLUSRUW DQG WKH
ZLWK DQ RSSRUWXQLW\ WR FRUUHFW HDFK RWKHU
DSSURDFK PD\ EH RU HJ FRQILUPLQJ XVH RI WKH FRUUHFW DQG HIIHFWLYH
DSSURDFK FKDUW FRQILUPLQJ FRUUHFW VHWXS RI QDYDLGV
IRU WKH DVVLJQHG ODQGLQJ UXQZD\ HWF
x +RZ RIWHQ WKH FUHZPHPEHUV KDYH IORZQ
WRJHWKHU %ULHILQJV VKRXOG EH VWUXFWXUHG LH IROORZ WKH ORJLFDO
VHTXHQFH RI WKH DSSURDFK DQG ODQGLQJ DQG
7KLV %ULHILQJ 1RWH SURYLGHV JHQHULF JXLGHOLQHV IRU FRQFLVH
FRQGXFWLQJ HIIHFWLYH DQG SURGXFWLYH EULHILQJV 7KH URXWLQH DQG IRUPDO UHSHWLWLRQ RI WKH VDPH SRLQWV
RQ HDFK VHFWRU PD\ EHFRPH FRXQWHUSURGXFWLYH
6WDWLVWLFDO 'DWD DGDSWLQJ DQG H[SDQGLQJ WKH EULHILQJ E\ KLJKOLJKWLQJ
WKH VSHFLDO DVSHFWV RI WKH DSSURDFK RU WKH DFWXDO
7KH TXDOLW\ RI DSSURDFK DQG JRDURXQG EULHILQJV LV ZHDWKHU FRQGLWLRQV DQG FLUFXPVWDQFHV UHVXOW LQ
REVHUYHG DV D FDXVDO IDFWRU LQ DSSUR[LPDWHO\ PRUH OLYHO\ DQG HIIHFWLYH EULHILQJV
RI DSSURDFKDQGODQGLQJ DFFLGHQW E\ DIIHFWLQJ ,Q VKRUW WKH EULHILQJ VKRXOG DWWUDFW WKH 31)¶V
x 8QGHUVWDQGLQJ RI SUHYDLOLQJ FRQGLWLRQV DWWHQWLRQ
x +RUL]RQWDO RU YHUWLFDO VLWXDWLRQDO DZDUHQHVV 7KH EULHILQJ VKRXOG WKHUHIRUH EH FRQGXFWHG ZKHQ
DQG WKH ZRUNORDG DQG DYDLODELOLW\ RI WKH 31) SHUPLW DQ
HIIHFWLYH EULHILQJ
x &UHZ FRRUGLQDWLRQ
$Q\ DVSHFW WKDW PD\ DIIHFW QRUPDO RSHUDWLRQ
HJ V\VWHP IDLOXUHV ZHDWKHU FRQGLWLRQV RU RWKHU
%ULHILQJ 7HFKQLTXHV SDUWLFXODU FRQGLWLRQV VKRXOG EH FDUHIXOO\ HYDOXDWHG
DQG GLVFXVVHG
7KH LPSRUWDQFH RI EULHILQJ WHFKQLTXHV RIWHQ LV 7KH EULHILQJ VKRXOG KHOS ERWK WKH 3) JLYLQJ WKH
XQGHUHVWLPDWHG DOWKRXJK HIIHFWLYH EULHILQJV EULHILQJ DQG WKH 31) UHFHLYLQJ DQG DFNQRZOHGJLQJ
FRQWULEXWH WR HQKDQFH FUHZ VWDQGDUGL]DWLRQ DQG WKH EULHILQJ WR XQGHUVWDQG WKH VHTXHQFH RI HYHQWV
FRPPXQLFDWLRQ DQG DFWLRQV DV ZHOO DV WKH VSHFLDO KD]DUGV DQG
FLUFXPVWDQFHV RI WKH DSSURDFK LH E\ FUHDWLQJ D
FRPPRQ PHQWDO PRGHO RI WKH DSSURDFK
3DJH
:KHWKHU DQWLFLSDWHG RU QRW FKDQJHV LQ DQ DLU WUDIILF $LUFUDIW 6WDWXV

FRQWURO $7& FOHDUDQFH ZHDWKHU FRQGLWLRQV RU
ODQGLQJ UXQZD\ UHTXLUH UHYLHZLQJ SDUW RI WKH LQLWLDO 5HYLHZ WKH DLUFUDIW 67$786 DV DSSOLFDEOH LH DQ\
EULHILQJ IDLOXUH RU PDOIXQFWLRQ H[SHULHQFHG GXULQJ WKH IOLJKW
DQG GLVFXVV WKH SRVVLEOH FRQVHTXHQFHV LQ WHUPV RI
RSHUDWLRQ DQG SHUIRUPDQFH LH ILQDO DSSURDFK
7LPHOLQHVV RI %ULHILQJV VSHHG DQG ODQGLQJ GLVWDQFH
5XVKLQJ GXULQJ GHVFHQW DQG DSSURDFK LV D

VLJQLILFDQW IDFWRU LQ DSSURDFKDQGODQGLQJ LQFLGHQWV )XHO 6WDWXV
DQG DFFLGHQWV
5HYLHZ IXHO VWDWXV
7R SUHYHQW DQ\ UXVK LQ LQLWLDWLQJ WKH GHVFHQW DQG
x )XHO RQ ERDUG
LQFUHDVHG ZRUNORDG LQ FRQGXFWLQJ WKH DSSURDFK WKH
GHVFHQW SUHSDUDWLRQ DQG WKH DSSURDFK DQG JR x 0LQLPXP GLYHUVLRQ IXHO DQG
DURXQG EULHILQJV W\SLFDOO\ VKRXOG EH FRPSOHWHG
PLQXWHV EHIRUH UHDFKLQJ WKH WRSRIGHVFHQW
x $YDLODEOH KROGLQJ IXHO DQG WLPH
6FRSH RI %ULHILQJV $7,6
5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV

7KH DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG FRYHU
WKH IROORZLQJ JHQHULF DVSHFWV RI WKH DSSURDFK DQG
ODQGLQJ LQFOXGLQJ D SRVVLEOH PLVVHG DSSURDFK DQG D
x 5XQZD\ LQ XVH W\SH RI DSSURDFK
VHFRQG DSSURDFK RU GLYHUVLRQ

x ([SHFWHG DUULYDO URXWH VWDQGDUG WHUPLQDO DUULYDO
x $SSURDFK FRQGLWLRQV LH ZHDWKHU DQG UXQZD\ > 67$5 @ RU UDGDU YHFWRUV
FRQGLWLRQV VSHFLDO KD]DUGV
x /DWHUDO DQG YHUWLFDO QDYLJDWLRQ LH LQWHQGHG x $OWLPHWHU VHWWLQJ 41+ RU 4)( DV UHTXLUHG
XVH RI DXWRPDWLRQ
)RU LQWHUQDWLRQDO RSHUDWLRQV EH DZDUH RI WKH
x ,QVWUXPHQW DSSURDFK SURFHGXUH GHWDLOV DSSOLFDEOH DOWLPHWHU VHWWLQJ XQLW KHFWRSDVFDOV
RU LQFKHV RIPHUFXU\
x &RPPXQLFDWLRQV
x 1RQQRUPDO SURFHGXUHV DV DSSOLFDEOH DQG x 7UDQVLWLRQ OHYHO XQOHVV VWDQGDUG IRU WKH FRXQWU\
RU IRU WKH DLUSRUW
x 5HYLHZ DQG GLVFXVVLRQ RI DSSURDFKDQGODQGLQJ
KD]DUGV
x 7HUPLQDO ZHDWKHU GLVFXVV OLNHO\ WXUEXOHQFH
LFLQJ RU ZLQG VKHDU FRQGLWLRQV DQG UXQZD\
7KHVH DVSHFWV DUH H[SDQGHG DQG GLVFXVVHG LQ
FRQGLWLRQ DQG
GHWDLOV LQ WKLV %ULHILQJ 1RWH
x $GYLVRU\ PHVVDJHV DV DSSOLFDEOH
$SSURDFK %ULHILQJ
127$0V
)06 SDJHV DQG 1' VKRXOG EH XVHG WR JXLGH DQG
LOOXVWUDWH WKH EULHILQJ DQG WR FRQILUP WKH YDULRXV
5HYLHZ DQG GLVFXVV HQURXWH DQG WHUPLQDO 127$0V
GDWD HQWULHV
DV DSSOLFDEOH IRU SRVVLEOH DGGLWLRQDO KD]DUGV RU
DLUVSDFH UHVWULFWLRQV
$Q H[SDQGHG UHYLHZ RI WKH LWHPV WR EH FRYHUHG LQ
WKH DSSURDFK EULHILQJ ± DV SUDFWLFDO DQG DSSURSULDWH
IRU WKH FRQGLWLRQV RI WKH IOLJKW ± LV SURYLGHG
KHUHDIWHU
3DJH
7RSRIGHVFHQW SRLQW x 9LVLELOLW\595 PLQLPXPV DQG FHLOLQJ DV

DSSOLFDEOH
&RQILUP RU DGMXVW WKH WRSRIGHVFHQW SRLQW
FRPSXWHG E\ WKH )06 DV D IXQFWLRQ RI WKH H[SHFWHG x 'HVFHQWGHFLVLRQ PLQLPXPV
DUULYDO LH IROORZLQJ WKH SXEOLVKHG 67$5 RU UDGDU
0'$+ IRU QRQSUHFLVLRQ DSSURDFKHV
YHFWRUV
%DURPHWULF '$+ IRU &$7 , ,/6

DSSURDFKHV RU
$SSURDFK &KDUW
5DGLRDOWLPHWHU '+ IRU &$7 ,, DQG &$7 ,,,

5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV XVLQJ WKH ,/6 DSSURDFKHV
DSSURDFK FKDUW DQG WKH )061' DV DSSOLFDEOH
x 'HVLJQDWHG UXQZD\ DQG DSSURDFK W\SH x /RFDO DLUSRUW UHTXLUHPHQW HJ QRLVH UHVWULFWLRQV
RQ WKH XVH RI WKUXVW UHYHUVHUV HWF
x &KDUW LQGH[ QXPEHU DQG GDWH
x 0LQLPXP 6DIH $OWLWXGH 06$ UHIHUHQFH SRLQW $LUSRUW FKDUW

VHFWRUV DQG PLQLPXP VHFWRU VDIH DOWLWXGHV
5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV XVLQJ WKH
x /HWGRZQ QDYDLGV IUHTXHQF\ DQG LGHQWLILHU
DLUSRUW FKDUW
FRQILUP WKH FRUUHFW VHWXS RI QDYDLGV
x $LUSRUW HOHYDWLRQ x 5XQZD\ OHQJWK ZLGWK DQG VORSH
x $SSURDFK WUDQVLWLRQV IL[HV KROGLQJ SDWWHUQ x $SSURDFK DQG UXQZD\ OLJKWLQJ DQG RWKHU
DOWLWXGH DQG VSHHG FRQVWUDLQWVUHVWULFWLRQV H[SHFWHG YLVXDO UHIHUHQFHV
UHTXLUHG QDYDLGV VHWXS
x 6SHFLILF KD]DUGV DV DSSOLFDEOH DQG
x )LQDO DSSURDFK FRXUVH DQG OHDGLQ UDGLDO
x ,QWHQGHG WXUQRII WD[LZD\
x 7HUUDLQ IHDWXUHV ORFDWLRQ DQG HOHYDWLRQ RI
KD]DUGRXV WHUUDLQ RU PDQPDGH REVWDFOHV
,I DQRWKHU DLUSRUW LV ORFDWHG LQ WKH FORVH YLFLQLW\ RI WKH
x $SSURDFK SURILOH YLHZ GHVWLQDWLRQ DLUSRUW UHOHYDQW GHWDLOV RU SURFHGXUHV
VKRXOG EH GLVFXVVHG IRU DZDUHQHVV SXUSRVHV
)LQDO DSSURDFK IL[ )$)
)LQDO GHVFHQW SRLQW LI GLIIHUHQW IURP )$)

8VH RI DXWRPDWLRQ
9LVXDO GHVFHQWGHFLVLRQ SRLQW 9'3
'LVFXVV WKH LQWHQGHG XVH RI DXWRPDWLRQ IRU YHUWLFDO
0LVVHGDSSURDFK SRLQW 0$3
DQG ODWHUDO JXLGDQFH GHSHQGLQJ RQ )06 QDYLJDWLRQ
7\SLFDO YHUWLFDO VSHHG DW H[SHFWHG ILQDO DFFXUDF\ RQO\ IRU DLUFUDIW QRW HTXLSSHG ZLWK *36 RU
DSSURDFK JURXQG VSHHG *6 DQG LI *36 35,0$5< /267 LV GLVSOD\HG
7RXFKGRZQ ]RQH HOHYDWLRQ 7'=( x 8VH RI )06 YHUWLFDO QDYLJDWLRQ DQG ODWHUDO
QDYLJDWLRQ RU XVH RI VHOHFWHG YHUWLFDO PRGHV DQG
x 0LVVHG DSSURDFK ODWHUDO PRGHV DQG
/DWHUDO DQG YHUWLFDO QDYLJDWLRQ x 6WHSGRZQ DSSURDFK LI D FRQVWDQWDQJOH

QRQSUHFLVLRQ DSSURDFK LV QRW DYDLODEOH RU QRW
6SHHG UHVWULFWLRQV SRVVLEOH
0LQLPXP GLYHUVLRQ IXHO
6HFRQG DSSURDFK GLVFXVV WKH W\SH RI /DQGLQJ DQG 6WRSSLQJ
DSSURDFK LI D GLIIHUHQW UXQZD\ DQGRU W\SH RI

DSSURDFK LV HQYLVDJHG RU GLYHUVLRQ WR WKH 'LVFXVV WKH LQWHQGHG ODQGLQJ IODSV FRQILJXUDWLRQ
DOWHUQDWH LI GLIIHUHQW IURP IXOO IODSV
3DJH
5HYLHZ DQG GLVFXVV WKH IROORZLQJ IHDWXUHV RI WKH 7KH JRDURXQG EULHILQJ VKRXOG UHFDOO EULHIO\ WKH
LQWHQGHG ODQGLQJ UXQZD\ IROORZLQJ NH\ DVSHFWV
x 6XUIDFH FRQGLWLRQ x *RDURXQG FDOORXW LH D ORXG DQG FOHDU

JRDURXQG IODSV FDOO
x ,QWHQGHG XVH RI DXWREUDNH DQG WKUXVW UHYHUVHUV
DQG x 3)31) WDVN VKDULQJ LH IORZ RI UHVSHFWLYH

DFWLRQV LQFOXGLQJ XVH RI $3 VSHHG UHVWULFWLRQV
x ([SHFWHG UXQZD\ WXUQRII JRDURXQG DOWLWXGH SDUDPHWHUH[FHVVLYH
GHYLDWLRQ FDOOV
7D[L WR JDWH x ,QWHQGHG XVH RI DXWRPDWLRQ LH DXWRPDWLF RU

PDQXDO JRDURXQG XVH RI )06 ODWHUDO
5HYLHZ DQG GLVFXVV QDYLJDWLRQ RU XVH RI VHOHFWHG PRGHV IRU PLVVHG
DSSURDFK
x 7KH DQWLFLSDWHG WD[LZD\V WR WD[L WR WKH DVVLJQHG
JDWH HJ EDFNWUDFN RQ DFWLYH UXQZD\ RU RQ x 0LVVHGDSSURDFK ODWHUDO QDYLJDWLRQ DQG YHUWLFDO
SDUDOOHO UXQZD\ ZLWK VSHFLDO HPSKDVLV RQ WKH SURILOH HJ KLJKOLJKWLQJ REVWDFOHV DQG WHUUDLQ
SRVVLEOH FURVVLQJ RI DFWLYH UXQZD\V DV IHDWXUHV DV DSSOLFDEOH DQG
DSSOLFDEOH
x ,QWHQWLRQV LH VHFRQG DSSURDFK RU GLYHUVLRQ
x 1RQVWDQGDUG OLJKWLQJ DQGRU PDUNLQJ RI
WD[LZD\V DQGRU
,W LV UHFRPPHQGHG WR EULHIO\ UHFDOO WKH PDLQ SRLQWV RI
WKH JRDURXQG DQG PLVVHGDSSURDFK ZKHQ
x 3RVVLEOH ZRUN LQ SURJUHVV RQ UXQZD\V DQG
HVWDEOLVKHG RQ WKH ILQDO DSSURDFK FRXUVH RU DIWHU
WD[LZD\V
FRPSOHWLQJ WKH ODQGLQJ FKHFNOLVW DV GHHPHG
SUDFWLFDO
$V UHTXLUHG WKLV UHYLHZ DQG GLVFXVVLRQ FDQ EH
GHOD\HG XQWLO DIWHU ODQGLQJ
&$7 ,, &$7 ,,, ,/6 EULHILQJ

7KH DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH
DGDSWHG WR WKH FRQGLWLRQV RI WKH IOLJKW DQG IRFXV RQ
)RU &$7 ,, DQG &$7 ,,, ,/6 DSSURDFKHV SHUIRUP WKH
WKH LWHPV WKDW DUH UHOHYDQW IRU WKH SDUWLFXODU
VSHFLILF &$7 ,, &$7 ,,, EULHILQJ LQ DFFRUGDQFH ZLWK
DSSURDFK DQG ODQGLQJ VXFK DV VSHFLILF DSSURDFK
FRPSDQ\¶ 623V
KD]DUGV
7KH DSSURDFK DQG JRDURXQG EULHILQJ VKRXOG LQFOXGH

'HYLDWLRQV IURP 623V
WKH IROORZLQJ $/$5FULWLFDO LWHPV
$Q\ LQWHQGHG GHYLDWLRQ IURP 623V RU IURP VWDQGDUG

FDOOV VKRXOG EH GLVFXVVHG GXULQJ WKH EULHILQJ
x 0LQLPXP VDIH DOWLWXGH
x 7HUUDLQ DQG PDQPDGH REVWDFOHV IHDWXUHV
*RDURXQG %ULHILQJ
x :HDWKHU DQG UXQZD\ FRQGLWLRQ
$ JRDURXQG EULHILQJ VKRXOG EH LQFOXGHG LQ WKH

GHVFHQWDQGDSSURDFK EULHILQJ KLJKOLJKWLQJ WKH NH\ x 2WKHU DSSURDFK KD]DUGV DV DSSOLFDEOH HJ
SRLQWV RI WKH JRDURXQG PDQHXYHU DQG PLVVHG YLVXDO LOOXVLRQV
DSSURDFK DQG WKH WDVN VKDULQJ XQGHU QRUPDO RU

DEQRUPDO HPHUJHQF\ FRQGLWLRQV x $SSOLFDEOH PLQLPXPV YLVLELOLW\ RU 595 FHLOLQJ
DV DSSOLFDEOH
3DJH
x $SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH 5HJXODWRU\ 5HIHUHQFHV

x )LQDO DSSURDFK IOLJKW SDWK DQJOH DQG YHUWLFDO
VSHHG DQG
$HURSODQHV $SSHQGL[
x *RDURXQG DOWLWXGH DQG PLVVHGDSSURDFK LQLWLDO x ,&$2 ± 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV ±
VWHSV $LUFUDIW RSHUDWLRQV 3$16236 'RF
9ROXPH , ± )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW
1R DSSOLFDEOH 1RY
$VVRFLDWHG %ULHILQJ 1RWHV x ,&$2 ± 3UHSDUDWLRQ RI DQ 2SHUDWLRQV PDQXDO
'RF
7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG LQ
DVVRFLDWLRQ ZLWK WKH DERYH LQIRUPDWLRQ IRU D x )$5 ± &RFNSLW &KHFN 3URFHGXUH IRU
FRPSOHWH RYHUYLHZ RI WKH GHVFHQW DQG DSSURDFK QRUPDO DQG QRQQRUPDO FRQGLWLRQV
SUHSDUDWLRQ
x -$5236 DQG DVVRFLDWHG $SSHQGL[ %
J
x ² 2SHUDWLQJ 3KLORVRSK\ 623V
x +XPDQ )DFWRUV LQ $SSURDFKDQG

/DQGLQJ $FFLGHQWV
x &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ

$FFLGHQWV
x %HLQJ 3UHSDUHG WR *RDURXQG
x )O\LQJ 6WDELOL]HG $SSURDFKHV
3DJH
&KDSWHU
&UHZ&RRUGLQDWLRQ
$SSURDFKDQGODQGLQJ%ULHILQJ1RWH
+XPDQ)DFWRUVLQ$SSURDFKDQG/DQGLQJ$FFLGHQWV
,QWURGXFWLRQ 7KH IROORZLQJ IDFWRUV DQG FRQGLWLRQV RIWHQ DUH FLWHG

LQ GLVFXVVLQJ GHYLDWLRQV IURP 623V
7KLV %ULHILQJ 1RWH SURYLGHV D VXPPDU\ RI KXPDQ
x 7DVN VDWXUDWLRQ LH DEVHQFH RI PXOWLWDVNLQJ
IDFWRUV LVVXHV LGHQWLILHG LQ DSSURDFKDQGODQGLQJ
DELOLW\ RU WDVN RYHUORDG
DFFLGHQWV
x ,QDGHTXDWH NQRZOHGJH RI RU IDLOXUH WR
7KLV VXPPDU\ PD\ EH XVHG HLWKHU WR DVVHVV XQGHUVWDQG WKH UXOH SURFHGXUH RU DFWLRQ WKLV
LQFOXGHV
x &RPSDQ\ H[SRVXUH DQG GHYHORS FRUUHVSRQGLQJ
WUDLQLQJ
SUHYHQWLRQ VWUDWHJLHV RU
TXDOLW\ RI ZRUGLQJ RU SKUDVLQJ DQGRU
x ,QGLYLGXDO H[SRVXUH DQG GHYHORS FRUUHVSRQGLQJ
SHUVRQDO OLQHVRIGHIHQVH
SHUFHSWLRQ RI UXOH RU SURFHGXUH RU DFWLRQ DV
LQDSSURSULDWH
6WDWLVWLFDO 'DWD
623V GXULQJ WUDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW
WUDLQLQJ
8OWLPDWHO\ KXPDQ IDFWRUV DUH LQYROYHG LQ DOO
LQFLGHQWV DQG DFFLGHQWV x /DFN RI YLJLODQFH HJ IDWLJXH
:KHWKHU FUHZUHODWHG $7&UHODWHG PDLQWHQDQFH

x 'LVWUDFWLRQV HJ GXH WR FRFNSLW DFWLYLWLHV
UHODWHG RUJDQL]DWLRQUHODWHG RU GHVLJQUHODWHG HDFK x ,QWHUUXSWLRQV HJ GXH WR SLORWFRQWUROOHU

OLQN RI WKH HUURU FKDLQ LQYROYHV KXPDQ EHLQJV DQG FRPPXQLFDWLRQV
WKHUHIRUH KXPDQ GHFLVLRQV DQG EHKDYLRUV
x ,QFRUUHFW PDQDJHPHQW RI SULRULWLHV LH
DEVHQFH RI GHFLVLRQPDNLQJ PRGHO IRU WLPH
+XPDQ )DFWRUV ,VVXHV LQ FULWLFDO VLWXDWLRQV
x 5HGXFHG DWWHQWLRQ WXQQHO YLVLRQ LQ DEQRUPDO RU
6WDQGDUG RSHUDWLQJ SURFHGXUHV 623V KLJKZRUNORDG FRQGLWLRQV
x ,QFRUUHFW &50 WHFKQLTXHV LH IRU HIIHFWLYH

7R HQVXUH HIIHFWLYH FRPSOLDQFH ZLWK SXEOLVKHG
FURVVFKHFN FUHZ FRRUGLQDWLRQ RU EDFNXS
623V DQG DVVRFLDWHG QRUPDO FKHFNOLVWV DQG
VWDQGDUGV FDOOV LW LV LPSRUWDQW WR XQGHUVWDQG ZK\ x &RPSDQ\ SROLFLHV HJ UHJDUGLQJ VFKHGXOHV
SLORWV LQWHQWLRQDOO\ RU LQDGYHUWHQWO\ GHYLDWH IURP UXOHV FRVWV JRDURXQG DQG GLYHUVLRQ HYHQWV
RU VWDQGDUGV
x 2WKHU SROLFLHV HJ FUHZ GXW\ WLPH
3LORWV UDUHO\ GHYLDWH LQWHQWLRQDOO\ IURP 623V LQ PRVW x 3HUVRQDO GHVLUHV RU FRQVWUDLQWV LH SHUVRQDO
FDVHV WKH SURFHGXUH WKDW ZDV IROORZHG LQ SODFH RI VFKHGXOH IRFXV RQ PLVVLRQ FRPSOHWLRQ
WKH SXEOLVKHG SURFHGXUH VHHPHG WR EH DSSURSULDWH
IRU WKH SUHYDLOLQJ FLUFXPVWDQFHV FRQVLGHULQJ WKH
x &RPSODFHQF\ DQGRU
LQIRUPDWLRQ DYDLODEOH DW WKH WLPH x +LJK WLPH RQ DLUFUDIW W\SH LH RYHUFRQILGHQFH
+XPDQ )DFWRUV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV

3DJH
8VH RI DXWRPDWLRQ %ULHILQJ 7HFKQLTXHV
(UURUV LQ XVLQJ DQG PDQDJLQJ DXWRPDWLF IOLJKW 7KH LPSRUWDQFH RI EULHILQJ WHFKQLTXHV RIWHQ LV
V\VWHPV DQGRU ODFN RI DZDUHQHVV RI RSHUDWLQJ XQGHUHVWLPDWHG DOWKRXJK HIIHFWLYH EULHILQJV
PRGHV DUH REVHUYHG DV FDXVDO IDFWRUV LQ PRUH WKDQ FRQWULEXWH WR HQKDQFH FUHZ VWDQGDUGL]DWLRQ DQG
RI DSSURDFKDQGODQGLQJ DFFLGHQWV DQG QHDU FRPPXQLFDWLRQ
DFFLGHQWV
7KH URXWLQH DQG IRUPDO UHSHWLWLRQ RI WKH VDPH SRLQWV
7KHVH IDFWRUV FDQ UHVXOW LQ IO\LQJ DQ XQLQWHQGHG IOLJKW RQ HDFK VHFWRU PD\ EHFRPH FRXQWHUSURGXFWLYH
SDWK ZKLFK LI QRW UHFRJQL]HG FDQ FDXVH D OHVV DGDSWLQJ DQG H[SDQGLQJ WKH EULHILQJ E\ KLJKOLJKWLQJ
WKDQGHVLUHG WHUUDLQ VHSDUDWLRQ RU D &),7 WKH VSHFLDO DVSHFWV RI WKH DSSURDFK RU WKH DFWXDO
ZHDWKHU FRQGLWLRQV DQG FLUFXPVWDQFHV RI WKH GD\
7KH IROORZLQJ FRPPRQ HUURUV LQ KDQGOLQJ DXWR IOLJKW UHVXOW LQ PRUH OLYHO\ DQG HIIHFWLYH EULHILQJV
V\VWHPV FDQ LQFUHDVH WKH ULVN RI DSSURDFKDQG
ODQGLQJ DFFLGHQWV 7KH EULHILQJ VKRXOG DWWUDFW WKH DWWHQWLRQ RI WKH 31)
x ,QDGYHUWHQW VHOHFWLRQ RI DQ LQFRUUHFW PRGH
7KH EULHILQJ VKRXOG KHOS ERWK WKH 3) JLYLQJ WKH
x )DLOXUH WR YHULI\ WKH VHOHFWHG PRGH E\ UHIHUHQFH EULHILQJ DQG WKH 31) UHFHLYLQJ DQG DFNQRZOHGJLQJ
WR WKH IOLJKW PRGH DQQXQFLDWRU )0$ WKH EULHILQJ WR XQGHUVWDQG WKH VHTXHQFH RI HYHQWV
x )DLOXUH WR DUP D PRGH ZKHQ UHTXLUHG HJ IDLOXUH
DQG DFWLRQV WKH VDIHW\ NH\ SRLQWV VSHFLDO KD]DUGV
WR DUP WKH ORFDOL]HU RU DSSURDFK PRGH ZKHQ DQG FLUFXPVWDQFHV RI WKH DSSURDFK
FOHDUHG IRU /2& RU ,/6 LQWHUFHSWLRQ $Q LQWHUDFWLYH EULHILQJ IXOILOOV WZR LPSRUWDQW JRDOV RI
x )DLOXUH WR VHOHFW D UHTXLUHG JXLGDQFH WDUJHW WKH EULHILQJ SURYLGH WKH 3) DQG WKH 31) ZLWK DQ
HJ IDLOXUH WR VHW WKH ,/6 ILQDO DSSURDFK FRXUVH RSSRUWXQLW\ WR
x ,QDGYHUWHQW FKDQJH RI D JXLGDQFH WDUJHW x &RUUHFW HDFK RWKHU DQG
LH FKDQJLQJ WKH VSHHG WDUJHW LQVWHDG RI x 6KDUH D FRPPRQ PHQWDO PRGHO RI WKH
FKDQJLQJ WKH VHOHFWHG KHDGLQJ DSSURDFK
x 6HOHFWLRQ RI DQ LQFRUUHFW DOWLWXGH DQG IDLOXUH WR
FRQILUP WKH VHOHFWLRQ RQ WKH SULPDU\ IOLJKW GLVSOD\
3)' &UHZ$7& &RPPXQLFDWLRQV
x 6HOHFWLRQ RI WKH DOWLWXGH WDUJHW WR DQ\ DOWLWXGH (IIHFWLYH FRPPXQLFDWLRQ LV DFKLHYHG ZKHQ RXU
EHORZ WKH ILQDO DSSURDFK LQWHUFHSW DOWLWXGH GXULQJ PHQWDO SURFHVV IRU LQWHUSUHWLQJ WKH LQIRUPDWLRQ
DSSURDFK FRQWDLQHG LQ D PHVVDJH DFFRPPRGDWHV WKH
x 3UHRFFXSDWLRQ ZLWK )06 SURJUDPPLQJ GXULQJ D
PHVVDJH EHLQJ UHFHLYHG
FULWLFDO IOLJKW SKDVH ZLWK FRQVHTXHQW ORVV RI 7KLV PHQWDO SURFHVV FDQ EH VXPPDUL]HG DV IROORZV
VLWXDWLRQDO DZDUHQHVV DQGRU
x +RZ GR ZH SHUFHLYH WKH PHVVDJH "
x )DLOXUH WR PRQLWRU WKH DXWRPDWLRQ XVLQJ UDZ GDWD
x +RZ GR ZH UHFRQVWUXFW WKH LQIRUPDWLRQ
7KH %ULHILQJ 1RWH 2SHUDWLRQV *ROGHQ 5XOHV FRQWDLQHG LQ WKH PHVVDJH "
DGGUHVVHV DVSHFWV WKDW DUH FRQVLGHUHG IUHTXHQW x +RZ GR ZH OLQN WKH LQIRUPDWLRQ WR DQ REMHFWLYH
FDXVDO IDFWRUV LQ DSSURDFK DQG ODQGLQJ DFFLGHQWV RU DQ H[SHFWDWLRQ " DQG
VXFK DV x :KDW ELDV RU HUURU LV LQWURGXFHG LQ WKLV SURFHVV"
x /DFN RI VLWXDWLRQDO SRVLWLRQDO DZDUHQHVV
x ,QWHUDFWLRQ ZLWK DXWRPDWLRQ
&UHZ 5HVRXUFH 0DQDJHPHQW &50 UHVHDUFKHV
KLJKOLJKW WKH LPSRUWDQFH RI WKH FRQWH[W DQG
x 2YHUUHOLDQFH RQ DXWRPDWLRQ DQGRU H[SHFWDWLRQV LQ WKLV PHQWDO SURFHVV
x /DFN RI FUHZ FURVVFKHFN

3DJH
7KH IROORZLQJ IDFWRUV PD\ DIIHFW WKH FRUUHFW x 0LVVLQJ RU PLVLQWHUSUHWLQJ DQ $7& LQVWUXFWLRQ
XQGHUVWDQGLQJ RI FRPPXQLFDWLRQV LH SRVVLEO\ UHVXOWLQJ LQ D WUDIILF FRQIOLFW RU
UXQZD\ LQFXUVLRQ
x +LJK ZRUNORDG
x 2PLWWLQJ DQ DFWLRQ DQG IDLOLQJ WR GHWHFW DQG
x )DWLJXH
FRUUHFW WKH UHVXOWLQJ DEQRUPDO FRQGLWLRQ RU
x 1RQDGKHUHQFH WR ³VWHULOH FRFNSLW´ UXOH FRQILJXUDWLRQ LI LQWHUUXSWHG GXULQJ D QRUPDO
FKHFNOLVW HJ DOWLPHWHU VHWWLQJ DQGRU
x 'LVWUDFWLRQV
x /HDYLQJ XQFHUWDLQWLHV XQUHVROYHG HJ
x ,QWHUUXSWLRQV DQGRU UHJDUGLQJ DQ $7& LQVWUXFWLRQ RU DQ DEQRUPDO
FRQGLWLRQ
x &RQIOLFWV DQG SUHVVXUHV
7KLV PD\ UHVXOW LQ
$OWLPHWHU VHWWLQJ DQG DOWLWXGH GHYLDWLRQ LVVXHV

x ,QFRPSOHWH FRPPXQLFDWLRQV
x 2PLVVLRQ RI FDOO VLJQ RU XVH RI DQ LQFRUUHFW FDOO 7KH LQFRUUHFW VHWWLQJ RI WKH DOWLPHWHU UHIHUHQFH RIWHQ
VLJQ LV WKH UHVXOW RI RQH RU PRUH RI WKH IROORZLQJ IDFWRUV
x 8VH RI QRQVWDQGDUG SKUDVHRORJ\ DQGRU

x +LJK ZRUNORDG
x )DLOXUH WR OLVWHQ RU UHVSRQG
x ,QDGHTXDWH SLORWV\VWHP LQWHUIDFH
,QWUDFUHZ &RPPXQLFDWLRQV x ,QFRUUHFW SLORWFRQWUROOHU FRPPXQLFDWLRQ
,QWHUUXSWLRQV DQG GLVWUDFWLRQV LQ WKH FRFNSLW EUHDN x 'HYLDWLRQ IURP QRUPDO WDVN VKDULQJ
WKH IORZ SDWWHUQ RI RQJRLQJ FRFNSLW DFWLYLWLHV
LH DFWLRQV RU FRPPXQLFDWLRQV VXFK DV
x ,QWHUUXSWLRQV DQG GLVWUDFWLRQV DQGRU
x 623V
x $EVHQFH RI HIIHFWLYH EDFNXS EHWZHHQ
x 1RUPDO FKHFNOLVWV
FUHZPHPEHUV
x &RPPXQLFDWLRQV LH OLVWHQLQJ SURFHVVLQJ

UHVSRQGLQJ 6WULFW DGKHUHQFH WR GHILQHG WDVN VKDULQJ IRU QRUPDO
RU DEQRUPDOHPHUJHQF\ FRQGLWLRQV DQG FRUUHFW XVH
x 0RQLWRULQJ WDVNV DQGRU RI QRUPDO FKHFNOLVWV DUH WKH PRVW HIIHFWLYH OLQHVRI
GHIHQVH DJDLQVW DOWLPHWHU VHWWLQJ HUURUV
x 3UREOHP VROYLQJ DFWLYLWLHV
7KH GLYHUWHG DWWHQWLRQ UHVXOWLQJ IURP WKH LQWHUUXSWLRQ

5XVKHG DQG XQVWDELOL]HG DSSURDFKHV
RU GLVWUDFWLRQ XVXDOO\ OHDYHV WKH IOLJKW FUHZ ZLWK WKH
IHHOLQJ RI EHLQJ UXVKHG DQG EHLQJ IDFHG ZLWK
7KH IROORZLQJ FLUFXPVWDQFHV IDFWRUV DQG HUURUV
FRPSHWLQJ RU SUHHPSWLQJ WDVNV
RIWHQ DUH FLWHG ZKHQ GLVFXVVLQJ UXVKHG DQG
XQVWDELOL]HG DSSURDFKHV
%HLQJ FRQIURQWHG ZLWK FRQFXUUHQW WDVN GHPDQGV WKH
QDWXUDO KXPDQ WHQGHQF\ OHDGV WR SHUIRUPLQJ RQH x )DWLJXH UHJDUGOHVV RI VKRUWPHGLXPKDXO RU
WDVN WR WKH GHWULPHQW RI DQRWKHU ORQJKDXO RSHUDWLRQ
7KLV KLJKOLJKWV WKH QHHG IRU GHYHORSLQJ

8QOHVV PLWLJDWHG E\ DGHTXDWH WHFKQLTXHV LQ RUGHU WR
FRXQWHUPHDVXUHV WR UHVWRUH WKH OHYHO RI
VHW SULRULWLHV WKLV GLVUXSWLRQ DQG ODSVH RI DWWHQWLRQ
YLJLODQFH DQG DOHUWQHVV IRU WKH GHVFHQW
PD\ UHVXOW LQ
DSSURDFK DQG ODQGLQJ
x 1RW PRQLWRULQJ WKH IOLJKW SDWK SRVVLEO\ UHVXOWLQJ
LQ DQ DOWLWXGH RU FRXUVH GHYLDWLRQ RU D FRQWUROOHG x 3UHVVXUH RI IOLJKW VFKHGXOH HJ PDNLQJ XS IRU
IOLJKW LQWR WHUUDLQ WDNHRII GHOD\

3DJH
x $Q\ FUHZLQGXFHG RU FRQWUROOHULQGXFHG x ,QFRUUHFW DVVHVVPHQW RI FURVVZLQG OLPLW IRU

FLUFXPVWDQFH UHVXOWLQJ LQ LQVXIILFLHQW WLPH WR SUHYDLOLQJ UXQZD\ FRQGLWLRQV
SODQ SUHSDUH DQG H[HFXWH D VDIH DSSURDFK
x ,QFRUUHFW DVVHVVPHQW RI ODQGLQJ GLVWDQFH
7KLV LQFOXGHV DFFHSWLQJ UHTXHVWV IURP $7& IRU
IRU SUHYDLOLQJ ZLQG DQG UXQZD\ FRQGLWLRQV RU
IO\LQJ KLJKHU DQGRU IDVWHU WKDQ GHVLUHG
DQGRU
IROORZLQJ D PDOIXQFWLRQ DIIHFWLQJ WKH
FRQILJXUDWLRQ RU EUDNLQJ FDSDELOLW\
IO\LQJ VKRUWHU URXWLQJV WKDQ GHVLUHG
x &DSWDLQ ZKHQ 31) WDNLQJ RYHU FRQWURO DQG
x ,QVXIILFLHQW $7& DZDUHQHVV RI FUHZ RU DLUFUDIW ODQGLQJ IROORZLQJ WKH FDOO RU LQLWLDWLRQ RI D JR
FDSDELOLW\ WR DFFRPPRGDWH D ODVWPLQXWH DURXQG E\ WKH )LUVW 2IILFHU DV 3)
FKDQJH
x /DWH WDNHRYHU IURP DXWRPDWLRQ ZKHQ UHTXLUHG
x /DWH WDNHRYHU IURP DXWRPDWLRQ HJ LQ FDVH RI HJ ODWH WDNH RYHU IURP DXWREUDNH LQ FDVH RI
$3 IDLOLQJ WR FDSWXUH WKH *6 XVXDOO\ GXH WR FUHZ V\VWHP PDOIXQFWLRQ
IDLOLQJ WR DUP WKH DSSURDFK PRGH
x ,QRSHUDWLYH HTXLSPHQW QRW DFFRXQWHG IRU SHU
x /DFN RI DZDUHQHVV RI WDLO ZLQG FRPSRQHQW 0(/ HJ RQH RU PRUH EUDNH EHLQJ
LQRSHUDWLYH DQGRU
x ,QFRUUHFW DQWLFLSDWLRQ RI DLUFUDIW GHFHOHUDWLRQ
FKDUDFWHULVWLFV LQ OHYHOIOLJKW RU RQ D GHJUHH x 8QGHWHFWHG WKUXVW DV\PPHWU\ LH IRUZDUG
JOLGHVORSH UHYHUVH DV\PPHWULF WKUXVW FRQGLWLRQ
x )DLOXUH WR UHFRJQL]H H[FHVVLYH SDUDPHWHU

GHYLDWLRQV RU WR UHPHPEHU WKH H[FHVVLYH
$GYHUVH ZLQG FURVVZLQG ODQGLQJ
SDUDPHWHUGHYLDWLRQ FULWHULD
x %HOLHI WKDW WKH DLUFUDIW ZLOO EH VWDELOL]HG DW WKH 7KH IROORZLQJ KXPDQ IDFWRUV RIWHQ DUH FLWHG LQ
VWDELOL]DWLRQ KHLJKW RU VKRUWO\ WKHUHDIWHU GLVFXVVLQJ HYHQWV LQYROYLQJ DGYHUVH ZLQG
FURVVZLQG FRQGLWLRQV
x 31) H[FHVVLYH FRQILGHQFH LQ WKH 3) LQ
DFKLHYLQJ D WLPHO\ VWDELOL]DWLRQ x 5HOXFWDQFH WR UHFRJQL]H FKDQJHV LQ ODQGLQJ
GDWD RYHU WLPH HJ ZLQG GLUHFWLRQ VKLIW ZLQG
x 3)31) H[FHVVLYH UHOLDQFH RQ HDFK RWKHU LQ
YHORFLW\ FKDQJH RU ZLQG JXVWLQHVV LQFUHDVH
FDOOLQJ H[FHVVLYH GHYLDWLRQV RU LQ FDOOLQJ
JRDURXQG DQGRU x 6HHNLQJ DQ\ HYLGHQFH WR FRQILUP WKH LQLWLDO
LQIRUPDWLRQ DQG LQLWLDO RSWLRQV LH UHOXFWDQFH WR
x 9LVXDO LOOXVLRQV GXULQJ WKH DFTXLVLWLRQ RI YLVXDO
FKDQJH SUHHVWDEOLVKHG SODQV
UHIHUHQFHV RU GXULQJ WKH YLVXDO VHJPHQW
x 5HOXFWDQFH WR GLYHUW WR DQ DLUSRUW ZLWK OHVV
FURVVZLQG FRQGLWLRQV DQGRU
5XQZD\ H[FXUVLRQV DQG RYHUUXQV
x /DFN RI WLPH WR REVHUYH HYDOXDWH DQG FRQWURO
WKH DLUFUDIW DWWLWXGH DQG IOLJKW SDWK LQ D KLJKO\
7KH IROORZLQJ IDFWRUV DUH UHFXUUHQW LQ UXQZD\
G\QDPLF VLWXDWLRQ
H[FXUVLRQV DQG RYHUUXQV LH KLJKOLJKWLQJ KXPDQ
IDFWRUV LQYROYLQJ FRQWUROOHUV IOLJKWFUHZ DQG
PDLQWHQDQFH SHUVRQQHO DOLNH
x 1R JRDURXQG GHFLVLRQ ZKHQ ZDUUDQWHG
$GGUHVVLQJ +XPDQ )DFWRUV LVVXHV LQ DSSURDFKDQG
x ,QDFFXUDWH ZHDWKHU LQIRUPDWLRQ RQ
ODQGLQJ LQFLGHQWV DQG DFFLGHQWV LV DQ HIIRUW WKDW
VXUIDFH ZLQG PXVW LQFOXGH
UXQZD\ FRQGLWLRQ DQGRU x 'HILQHG FRPSDQ\ VDIHW\ FXOWXUH DQG SROLFLHV
ZLQG VKHDU x 5HODWHG SUHYHQWLRQ VWUDWHJLHV

3DJH
x 5REXVW VWDQGDUG RSHUDWLQJ SURFHGXUHV 5HJXODWRU\ 5HIHUHQFHV

x (IIHFWLYH &50 SUDFWLFHV DQG

x 3HUVRQDO OLQHVRIGHIHQVH
$HURSODQHV $SSHQGL[
$VVRFLDWHG %ULHILQJ 1RWHV x ,&$2 ± 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV ±

7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHIHUUHG WR DV D 9ROXPH , ± )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW
FRPSOHPHQW WR WKH DERYH LQIRUPDWLRQ WR DPSOLI\ RU 1R DSSOLFDEOH 1RY
H[SHQG D VSHFLILF DVSHFW DV GHVLUHG
x ,&$2 ± $FFLGHQW 3UHYHQWLRQ 0DQXDO 'RF
x 2SHUDWLRQV *ROGHQ 5XOHV x ,&$2 ± +XPDQ )DFWRUV 7UDLQLQJ 0DQXDO

'RF
x 6WDQGDUG &DOOV
x ,&$2 ± +XPDQ )DFWRUV 'LJHVW 1R ± +XPDQ
x 8VH RI 1RUPDO &KHFNOLVWV )DFWRUV LQ $LU 7UDIILF &RQWURO &LUFXODU
x ² $SSURDFK DQG *RDURXQG %ULHILQJV x )$5 RU
&50 7UDLQLQJ IRU SLORWV IOLJKW DWWHQGDQWV DQG
x &50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ DLUFUDIW GLVSDWFKHUV
$FFLGHQWV x -$5236 RU &50

7UDLQLQJ
x (IIHFWLYH $7&&UHZ &RPPXQLFDWLRQV

'LVWUDFWLRQV LQ WKH &RFNSLW
x $OWLPHWHU 6HWWLQJ ² 8VH RI UDGLR

$OWLPHWHU
x $OWLWXGH 'HYLDWLRQV
x 3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG

2YHUUXQV

3DJH
&50,VVXHVLQ$SSURDFKDQG/DQGLQJ$FFLGHQWV
,QWURGXFWLRQ 7KH IOLJKWFUHZ LV FRQVLGHUHG WR EH WKH ODVW OLQHRI

GHIHQVH EXW LV DOVR WKH ODVW OLQN LQ WKH HUURU FKDLQ
$SSURDFKDQGODQGLQJ DFFLGHQWV LQYROYH WKH HQWLUH
UDQJH RI &50 DQG +XPDQ )DFWRUV LVVXHV &RPSDQ\ VDIHW\ FXOWXUH DQG SROLFLHV VKRXOG
7KH IROORZLQJ GLVFXVVLRQ LV D IRFXVHG EXW OLPLWHG WKHUHIRUH
RYHUYLHZ RI WKLV EURDG VXEMHFW x 6XSSRUW WKH LPSOHPHQWDWLRQ RI &50 SUDFWLFHV
7KH PLQLPXP FRQWHQW RI &50 WUDLQLQJ LV GHILQHG E\ x )DFLOLWDWH WKH PLWLJDWLRQ RI RUJDQL]DWLRQDO IDFWRUV
UHJXODWLRQV DQG DLUOLQHV VKRXOG FRQVLGHU DGGLWLRQDO DQG
&50 WUDLQLQJ WR DFFRXQW IRU VSHFLILF UHTXLUHPHQWV x ,GHQWLI\ DQG DGGUHVV SUHFXUVRUV RI SRWHQWLDO
VXFK DV PXOWLFXOWXUDO IOLJKW FUHZV DQG GLIIHUHQW LQFLGHQWV RU DFFLGHQWV
DUHDV RI RSHUDWLRQ
6WDWLVWLFDO GDWD ,QWHUQDWLRQDO &XOWXUDO )DFWRUV

&50 LVVXHV KDYH EHHQ LGHQWLILHG DV FLUFXPVWDQWLDO $V PRUH RSHUDWRUV DFFHVV WR JOREDO LQWHUQDWLRQDO
IDFWRUV LQ PRUH WKDQ RI DSSURDFKDQGODQGLQJ RSHUDWLRQ ZLWK PXOWLQDWLRQDOLW\ FUHZPHPEHUV
LQFLGHQWV RU DFFLGHQWV FURVVFXOWXUDO LVVXHV VKRXOG EHFRPH DQ LPSRUWDQW
SDUW RI D FXVWRPL]HG &50 WUDLQLQJ
%HFDXVH &50 SUDFWLFHV DUH D NH\ IDFWRU LQ 7KH GLVFXVVLRQ RI FURVVFXOWXUDO IDFWRUV VKRXOG
IOLJKWFUHZ DGKHUHQFH WR DQG SHUIRUPDQFH RI QRUPDO LQFOXGH
DQG QRQQRUPDO SURFHGXUHV DQG LQ WKH LQWHUDFWLRQ
ZLWK DXWRPDWHG V\VWHPV &50 LVVXHV DUH LQYROYHG x 8QGHUVWDQGLQJ GLIIHUHQFHV EHWZHHQ UDFH DQG
WR VRPH GHJUHH LQ HYHU\ LQFLGHQW RU DFFLGHQW FXOWXUH
x +LJKOLJKWLQJ WKH LPSRUWDQFH RI FXOWXUDO DQG
*HQHUDO QDWLRQDO VHQVLWLYLWLHV
x 3URPRWLQJ WKH XVH RI VWDQGDUG SKUDVHRORJ\ DV D
7KH IOLJKW FUHZ¶V FRQWULEXWLRQ WR DQ LQFLGHQW RU FRPPRQ ZRUNLQJ ODQJXDJH
DFFLGHQW RIWHQ LV FRQVLGHUHG WR EH ZKDW WKH IOLJKW
FUHZ GLG RU GLG QRW GR
&50 FRQFHSWV DQG WHFKQLTXHV HQKDQFH HIIHFWLYH /HDGHUVKLS
FURVV PRQLWRULQJ DQG EDFNXS E\ HDFK FUHZPHPEHU 7KH UROH RI WKH SLORWLQFRPPDQG 3,& LQ FRPSOH[
DQG GHPDQGLQJ VLWXDWLRQV VKRXOG EH HPSKDVL]HG
&RPSDQ\ &XOWXUH DQG 3ROLFLHV
GXULQJ &50 WUDLQLQJ
,W VKRXOG EH UHFRJQL]HG WKDW PDQ\ IDFWRUV 7KLV LQFOXGHV IRU H[DPSOH DSSURDFKHV ZLWK
DVVRFLDWHG ZLWK DFFLGHQWV DUH HPEHGGHG LQ WKH PDUJLQDO ZHDWKHU FRQGLWLRQV RU DEQRUPDO
JOREDO DYLDWLRQ V\VWHP RUJDQL]DWLRQ HPHUJHQF\ FRQGLWLRQV WKDW DUH EH\RQG WKH VFRSH RI
SXEOLVKHG SURFHGXUHV
&50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV

3DJH
7HDPZRUN ,QTXLU\ DQG $GYRFDF\

7KH FDSWDLQ¶V UROH DQG DWWLWXGH LQ RSHQLQJ WKH OLQH RI )OLJKWFUHZV RIWHQ DUH IDFHG ZLWK $7& UHTXHVWV WKDW
FRPPXQLFDWLRQ ZLWK WKH ILUVW RIILFHU DQG FDELQ FUHZ DUH HLWKHU
LV RI SULPH LPSRUWDQFH IRU VHWWLQJ WKH IOLJKW GHFN
DWPRVSKHUH DQG HQVXULQJ HIIHFWLYH x 1RW XQGHUVWRRG HJ EHLQJ DVVLJQHG DQ DOWLWXGH
EHORZ WKH VHFWRU 06$ ZKHQ WKH PLQLPXP
x +XPDQ UHODWLRQV HJ HIIHFWLYH LQWUDFUHZ YHFWRULQJ DOWLWXGH LV QRW SXEOLVKHG RU
FRPPXQLFDWLRQV
x &KDOOHQJLQJ HJ EHLQJ UHTXHVWHG WR IO\ KLJKHU
x 7HDPZRUN HJ DOORZLQJ WKH DXWKRULW\ DQG GXW\ DQGRU IDVWHU WKDQ GHVLUHG RU WR WDNH D VKRUWHU
IRU WKH ILUVW RIILFHU WR YRLFH DQ\ FRQFHUQ DV WR WKH URXWLQJ WKDQ GHVLUHG
SURJUHVV RI WKH IOLJKW DQG RYHUDOO VDIHW\ DQG
)OLJKW FUHZV VKRXOG QRW DFFHSW VXFK LQVWUXFWLRQV
x &UHZ FRRUGLQDWLRQ PXWXDO PRQLWRULQJ DQG ZLWKRXW UHTXHVWLQJ FODULILFDWLRQ RU EHLQJ VXUH WKDW
EDFNXS WKH\ FDQ FRPSO\ VDIHO\ ZLWK WKH $7& LQVWUXFWLRQV
3HUIRUPLQJ D SUHIOLJKW EULHILQJ WKDW LQFOXGHV

WKH IOLJKW FUHZ DQG FDELQ FUHZ HVWDEOLVKHV WKH EDVLV %ULHILQJV
IRU HIIHFWLYH WHDPZRUN
(IIHFWLYH DQG LQWHUDFWLYH EULHILQJV HQKDQFH FUHZ
)OLJKW DWWHQGDQWV PD\ KHVLWDWH WR UHSRUW WHFKQLFDO FRRUGLQDWLRQ DQG SUHSDUHGQHVV IRU SODQQHG DFWLRQV
RFFXUUHQFHV WR IOLJKW FUHZ LH EHFDXVH RI FXOWXUDO RU XQH[SHFWHG RFFXUUHQFHV E\ FUHDWLQJ D FRPPRQ
DVSHFWV FRPSDQ\ SROLFLHV RU LQWLPLGDWLRQ PHQWDO PRGHO RI WKH DSSURDFK
7R RYHUFRPH WKLV UHOXFWDQFH WKH LPSOHPHQWDWLRQ

DQG LQWHUSUHWDWLRQ RI WKH VWHULOH FRFNSLW UXOH DV 7LPH 0DQDJHPHQW
DSSOLFDEOH VKRXOG EH GLVFXVVHG GXULQJ FDELQ FUHZ
&50 WUDLQLQJ DQG UHFDOOHG E\ WKH FDSWDLQ GXULQJ WKH 7DNLQJ WLPH WR PDNH WLPH GHYHORSLQJ PXOWLWDVNLQJ
SUHIOLJKW EULHILQJ DELOLW\ DQG HQVXULQJ WDVN SULRULWL]DWLRQ DUH HVVHQWLDO
IDFWRUV LQ VWD\LQJ DKHDG RI WKH DLUFUDIW
$VVHUWLYHQHVV %ULHILQJ 1RWH 2SHUDWLRQV *ROGHQ 5XOHV

GHVFULEHV WKH YDULRXV VWHSV RI D W\SLFDO WDFWLFDO
$SSURDFKDQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV
GHFLVLRQPDNLQJ PRGHO IRU XVH LQ WLPHFULWLFDO
LOOXVWUDWH WKDW LI DQ RSWLRQ HJ SHUIRUPLQJ D JR
VLWXDWLRQV
DURXQG KDV QRW EHHQ SUHSDUHG IOLJKW FUHZ PD\ ODFN
WKH PHQWDO UHVRXUFHV QHHGHG WR
,QWHUUXSWLRQV DQG 'LVWUDFWLRQV

x 0DNH WKH UHTXLUHG GHFLVLRQ LH LQLWLDWH WKH JR
DURXQG RU
&RSLQJ ZLWK XQH[SHFWHG GLVWUDFWLRQ GLVWXUEDQFH DQG
FRQWLQJHQF\ LQ WKH FRFNSLW UHTXLUHV WKH XVH RI
x &RUUHFWO\ FRQGXFW WKH UHTXLUHG PDQHXYHU WHFKQLTXHV WR OHVVHQ WKH HIIHFWV RI DQ\ GLVUXSWLRQ LQ
LH IO\LQJ WKH SXEOLVKHG PLVVHGDSSURDFK WKH IORZ RI RQJRLQJ FRFNSLW DFWLYLWLHV
)DWLJXH RYHUFRQILGHQFH RU UHOXFWDQFH WR FKDQJH D )OLJKW FUHZV VKRXOG ³ H[SHFW WKH XQH[SHFWHG ´
SUHSDUHG SODQ RIWHQ DUH WKH SUREDEOH FDXVHV IRU D
ODFN RI DVVHUWLYHQHVV DVVHVVPHQW RI VLWXDWLRQ DQG
GHFLVLRQPDNLQJ

3DJH
(UURU 0DQDJHPHQW (IIHFWLYH IOLJKWFUHZ GHFLVLRQPDNLQJ UHTXLUHV D MRLQW

HYDOXDWLRQ RI SRVVLEOH RSWLRQV SULRU WR SURFHHGLQJ
(UURUPDQDJHPHQW WUDLQLQJ DQG WHFKQLTXHV VKRXOG ZLWK DQ DJUHHGXSRQ GHFLVLRQ DQG DFWLRQ
EH FRQVLGHUHG DW FRPSDQ\ OHYHO DQG DW SHUVRQDO
OHYHO 7KH HIIHFW RI SUHVVXUHV HJ GHOD\V FRPSDQ\
SROLFLHV $7& UHTXHVWV HWF WKDW PD\ DIIHFW KRZ WKH
$SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV OLVW DQG FUHZ FRQGXFWV WKH IOLJKW DQG PDNHV GHFLVLRQV
GLVFXVV WKH UHOHYDQW LQIOXHQFH IDFWRUV LH HUURU VKRXOG EH DFNQRZOHGJHG E\ WKH LQGXVWU\
IDFWRUV LQ RUGHU WR LGHQWLI\ RU VXJJHVW WKH
GHYHORSPHQW RI DVVRFLDWHG 1HYHUWKHOHVV HOLPLQDWLQJ DOO SUHVVXUHV LV QRW D
UHDOLVWLF REMHFWLYH 7KXV FRPSDQ\ DFFLGHQW
x &RPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG SUHYHQWLRQ VWUDWHJLHV &50 WHFKQLTXHV DQG
SHUVRQDO OLQHVRIGHIHQVH VKRXOG EH XVHG WR FRSH
x 3HUVRQDO OLQHVRIGHIHQVHV
HIIHFWLYHO\ ZLWK VXFK SUHVVXUHV
7KH PRVW FULWLFDO DVSHFW LQ GLVFXVVLQJ HUURU

7KH XVH RI D WDFWLFDOGHFLVLRQPDNLQJ PRGHO IRU
PDQDJHPHQW LV QRW WKH LQLWLDO HUURU RU GHYLDWLRQ EXW
WLPHFULWLFDO VLWXDWLRQV RIWHQ LV DQ HIIHFWLYH WHFKQLTXH
WKH IDLOXUH WR GHWHFW WKLV HUURU RU GHYLDWLRQ E\ PXWXDO
WR OHVVHQ WKH HIIHFWV RI SUHVVXUHV
PRQLWRULQJ DQG EDFNXS
6HYHUDO WDFWLFDOGHFLVLRQPDNLQJ PRGHOV XVXDOO\
5LVN 0DQDJHPHQW EDVHG RQ PHPRU\ DLGV RU RQ VHTXHQWLDO PRGHOV

KDYH EHHQ GHYHORSHG DQG VKRXOG EH GLVFXVVHG
GXULQJ &50 WUDLQLQJ
)RU WKH IOLJKW FUHZ ULVN PDQDJHPHQW FRQVLVWV LQ
DVVHVVLQJ WKH HIIHFWV RI SRWHQWLDO KD]DUGV RQ WKH
VDIH FRQGXFW RI WKH IOLJKW DQG LQ ILQGLQJ ZD\V WR $OO WDFWLFDOGHFLVLRQPDNLQJ PRGHOV VKDUH WKH
DYRLG WKHVH KD]DUGV RU WR PLQLPL]H WKHLU HIIHFWV IROORZLQJ SKDVHV UHIHU WR %ULHILQJ 1RWH ²

5LVN PDQDJHPHQW VKRXOG EH VHHQ DV D EDODQFHG
PDQDJHPHQW RI SULRULWLHV
x 5HFRJQL]LQJ WKH SUHYDLOLQJ FRQGLWLRQ
5LVN PDQDJHPHQW VRPHWLPHV LV GHVFULEHG DV

RSSRVLQJ
x $VVHVVLQJ VKRUW WHUP DQG ORQJ WHUP
FRQVHTXHQFHV RQ WKH IOLJKW
x $ VXUH LQFRQYHQLHQFH HJ DVVRFLDWHG ZLWK D
JRDURXQG RU D GLYHUVLRQ DJDLQVW x (YDOXDWLQJ DYDLODEOH RSWLRQV DQG SURFHGXUHV
x $ SUREDEOHRQO\ ULVN HJ ULVN DVVRFLDWHG ZLWK

DQ XQVWDELOL]HG DSSURDFK WR D ORQJ DQG GU\ x 'HFLGLQJ WKH FRXUVH RI DFWLRQV
UXQZD\
x 7DNLQJ DFWLRQV LQ DFFRUGDQFH ZLWK WKH GHILQHG
$ SUDFWLFDO DQG VDIHW\RULHQWHG PHWKRG RI ULVN SURFHGXUHV DQG DSSOLFDEOH WDVNVKDULQJ
PDQDJHPHQW LV HQWLUHO\ FRQWDLQHG LQ WKH FRQFHSW
DQG WHFKQLTXHV RI WDFWLFDOGHFLVLRQPDNLQJ UHIHU WR x (YDOXDWLQJ DQG PRQLWRULQJ DFWLRQ UHVXOWV DQG
%ULHILQJ 1RWH ² 2SHUDWLRQV *ROGHQ 5XOHV
x 5HVXPLQJ VWDQGDUG IO\LQJ GXWLHV
'HFLVLRQ 0DNLQJ 3RVWSRQLQJ D GHFLVLRQ XQWLO WKDW RSWLRQ LV QR PRUH

FRQVLGHUHG RU QR ORQJHU DYDLODEOH LV D UHFXUULQJ
623V VRPHWLPHV DUH SHUFHLYHG DV OLPLWLQJ WKH SDWWHUQ LQ DSSURDFKDQGODQGLQJ DFFLGHQWV
IOLJKWFUHZ¶V MXGJHPHQW DQG GHFLVLRQ
7KH FRQFHSWV RI QH[WWDUJHW DQG DSSURDFKJDWH DUH

:LWKRXW GHQ\LQJ WKH FDSWDLQ¶V HPHUJHQF\ DXWKRULW\ LQWHQGHG WR DFW DV EHQFKPDUNV IRU VXSSRUWLQJ D
623V DUH VDIHJXDUGV DJDLQVW ELDVHG GHFLVLRQ WLPHO\ GHFLVLRQPDNLQJ SURFHVV
PDNLQJ

3DJH
2WKHU &50 $VSHFWV 6XPPDU\ RI .H\ 3RLQWV

7KH IROORZLQJ &50 DVSHFWV PD\ EH LQYROYHG LQ &50 SUDFWLFHV RSWLPL]H WKH SHUIRUPDQFH RI WKH
DSSURDFKDQGODQGLQJ LQFLGHQWV RU DFFLGHQWV HQWLUH FUHZ LH LQFOXGLQJ IOLJKW FUHZ DQG FDELQ
FUHZ DQG PDLQWHQDQFH SHUVRQQHO
x 6SDWLDO GLVRULHQWDWLRQ LH SK\VLRORJLFDO LOOXVLRQV
DQGRU YLVXDO LOOXVLRQV &50 VNLOOV HIIHFWLYHO\
x &RPSODFHQF\ ZKHQ RSHUDWLQJ DW D IDPLOLDU x 5HOLHYH WKH HIIHFWV RI SUHVVXUHV LQWHUUXSWLRQV

DLUSRUW HJ KRPH EDVH RU DQG GLVWUDFWLRQV
x 2YHUFRQILGHQFH HJ KLJK WLPH RQ DLUFUDIW W\SH x 3URYLGH EHQFKPDUNV IRU WLPHO\ GHFLVLRQPDNLQJ
DQG
x ,QDGHTXDWH DQWLFLSDWLRQ LH LQDELOLW\ WR ³ VWD\

DKHDG RI WKH DLUFUDIW ³ x 3URYLGH VDIHJXDUGV IRU HIIHFWLYH HUURU
PDQDJHPHQW WKXV PLQLPL]LQJ WKH HIIHFWV RI
x ,QDGHTXDWH SUHSDUDWLRQ WR UHVSRQG WR FKDQJLQJ ZRUNLQJ HUURUV
VLWXDWLRQV RU WR DQ DEQRUPDO HPHUJHQF\

FRQGLWLRQ E\ SUHFLVH SODQQLQJ DQG XVH RI DOO
DYDLODEOH WHFKQLFDO DQG KXPDQ UHVRXUFHV $VVRFLDWHG %ULHILQJ 1RWHV
LH E\ ³ H[SHFWLQJ WKH XQH[SHFWHG ³
7KH IROORZLQJ %ULHILQJ 1RWHV SURYLGH H[SDQGHG
x &UHZPHPEHUV SHUVRQDO IDFWRUV DQGRU LQIRUPDWLRQ WR FRPSOHPHQW WKH DERYH GLVFXVVLRQ
x $EVHQFH RI VSHFLILF WUDLQLQJ RI LQVWUXFWRUV DQG x 2SHUDWLQJ 3KLORVRSK\ 623V

FKHFN DLUPHQ WR HYDOXDWH WKH &50 SHUIRUPDQFH
RI WUDLQHHV DQG OLQH SLORWV x ² 2SWLPXP XVH RI $XWRPDWLRQ

)DFWRUV $IIHFWLQJ &50 3UDFWLFH
x 6WDQGDUG &DOOV
7KH IROORZLQJ RUJDQL]DWLRQDO RU SHUVRQDO IDFWRUV PD\
DGYHUVHO\ DIIHFW WKH HIIHFWLYH LPSOHPHQWDWLRQ RI
&50 SUDFWLFHV x ² 8VH RI 1RUPDO &KHFNOLVWV
x &RPSDQ\ FXOWXUH DQG SROLFLHV x $SSURDFK DQG *RDURXQG %ULHILQJV
x %HOLHI WKDW DFWLRQV RU GHFLVLRQV DUH FRUUHFW x +XPDQ )DFWRUV LQ $SSURDFKDQG
DOWKRXJK WKH\ GHYLDWHV IURP WKH DSSOLFDEOH /DQGLQJ $FFLGHQWV
VWDQGDUGV

x (IIHFW RI IDWLJXH DQG DEVHQFH RI
FRXQWHUPHDVXUHV WR UHVWRUH WKH OHYHO RI
YLJLODQFH DQG DOHUWQHVV DQGRU
x 5HOXFWDQFH WR DFFHSW WKH LQIOXHQFH RI KXPDQ 'LVWUDFWLRQV LQ WKH &RFNSLW
IDFWRUV DQG &50 LVVXHV LQ DSSURDFKDQG
ODQGLQJ LQFLGHQWV RU DFFLGHQWV

3DJH
5HJXODWRU\ 5HIHUHQFHV
$HURSODQHV $SSHQGL[ DQG

± 5XOHV RI WKH $LU DQG $LU 7UDIILF 6HUYLFHV
3$165$& 'RF

1R DSSOLFDEOH 1RY
x ,&$2 ± $FFLGHQW 3UHYHQWLRQ 0DQXDO 'RF


'RF

)DFWRUV LQ $LU 7UDIILF &RQWURO &LUFXODU
x )$5 RU

&50 7UDLQLQJ IRU SLORWV FDELQ FUHZ DQG DLUFUDIW
GLVSDWFKHUV
x )$$ ± $& ± $HURQDXWLFDO 'HFLVLRQ

0DNLQJ
x -$5236 RU &50

7UDLQLQJ

3DJH
(IIHFWLYH3LORW&RQWUROOHU&RPPXQLFDWLRQV
,QWURGXFWLRQ 5HPDUN
8QWLO FRQWUROOHU SLORW GDWD OLQN FRPPXQLFDWLRQ $OWKRXJK SLORW FRQWUROOHU FRPPXQLFDWLRQV DUH QRW
&3'/& FRPHV LQWR ZLGHVSUHDG XVH DLU WUDIILF OLPLWHG WR WKH LVVXDQFH DQG DFNQRZOHGJHPHQW RI
FRQWURO $7& ZLOO GHSHQG XSRQ YRLFH FOHDUDQFHV WKLV %ULHILQJ 1RWH UHIHUV SULPDULO\ WR
FRPPXQLFDWLRQV WKDW DUH DIIHFWHG E\ YDULRXV IDFWRUV FOHDUDQFHV EHFDXVH WKLV SURYLGHV D FRQYHQLHQW
H[DPSOH WR LOOXVWUDWH PRVW GLVFXVVLRQ WRSLFV
&RPPXQLFDWLRQV EHWZHHQ FRQWUROOHUV DQG SLORWV FDQ
EH LPSURYHG E\ WKH PXWXDO XQGHUVWDQGLQJ RI HDFK
RWKHU¶V RSHUDWLQJ HQYLURQPHQW 3LORW &RQWUROOHU 5HVSRQVLELOLWLHV
7KLV $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWH SURYLGHV 7KH UHVSRQVLELOLWLHV RI WKH SLORW DQG FRQWUROOHU
DQ RYHUYLHZ RI YDULRXV IDFWRUV WKDW PD\ DIIHFW SLORW LQWHQWLRQDOO\ RYHUODS LQ PDQ\ DUHDV WR SURYLGH
FRQWUROOHU FRPPXQLFDWLRQV UHGXQGDQF\
7KLV %ULHILQJ 1RWH PD\ EH XVHG WR GHYHORS D 7KLV VKDUHG UHVSRQVLELOLW\ LV LQWHQGHG WR
FRPSDQ\ DZDUHQHVV SURJUDP IRU HQKDQFLQJ IOLJKW FRPSHQVDWH IRU IDLOXUHV WKDW PLJKW DIIHFW VDIHW\
SLORW FRQWUROOHU FRPPXQLFDWLRQV
7KH 3LORW &RQWUROOHU &RPPXQLFDWLRQ /RRS
6WDWLVWLFDO 'DWD
,QFRUUHFW RU LQFRPSOHWH SLORW FRQWUROOHU 7KH SLORW FRQWUROOHU FRPPXQLFDWLRQ ORRS VXSSRUWV
FRPPXQLFDWLRQV LV D FDXVDO RU FLUFXPVWDQWLDO IDFWRU WKH VDIHW\ DQG UHGXQGDQF\ RI SLORW FRQWUROOHU
LQ PDQ\ DSSURDFKDQGODQGLQJ HYHQWV FRPPXQLFDWLRQV )LJXUH
,QFRUUHFW RU LQDGHTXDWH 7KH SLORW FRQWUROOHU FRPPXQLFDWLRQ ORRS FRQVWLWXWHV
D FRQILUPDWLRQ FRUUHFWLRQ SURFHVV WKDW HQVXUHV WKH
x $7& LQVWUXFWLRQV VXFK DV UDGDU YHFWRUV LQWHJULW\ RI FRPPXQLFDWLRQV
x :HDWKHU RU WUDIILF LQIRUPDWLRQ DQGRU
:KHQHYHU DGYHUVH IDFWRUV DUH OLNHO\ WR DIIHFW
x $GYLFHVHUYLFH LQ FDVH RI HPHUJHQF\ FRPPXQLFDWLRQV VWULFW DGKHUHQFH WR WKLV FORVHG
DUH FDXVDO IDFWRUV LQ PRUH WKDQ RI DSSURDFK ORRS FRQVWLWXWHV D OLQHRIGHIHQVH DJDLQVW
DQGODQGLQJ DFFLGHQWV FRPPXQLFDWLRQ HUURUV
(IIHFWLYH 3LORW &RQWUROOHU &RPPXQLFDWLRQV

3DJH
$7& &OHDUDQFH
$FNQRZOHGJH RU 7UDQVPLW
&RUUHFW
/LVWHQ
&RQWUROOHU¶V 3LORW¶V
+HDUEDFN 5HDGEDFN
/LVWHQ 7UDQVPLW
)LJXUH
7KH 3LORW &RQWUROOHU &RPPXQLFDWLRQ /RRS
$FKLHYLQJ (IIHFWLYH &RPPXQLFDWLRQV +XPDQ IDFWRUV DVSHFWV LQ HIIHFWLYH

2EVWDFOHV DQG /HVVRQV /HDUQHG FRPPXQLFDWLRQ
(IIHFWLYH FRPPXQLFDWLRQ LV DFKLHYHG ZKHQ RXU
3LORWV DQG FRQWUROOHUV DUH LQYROYHG HTXDOO\ LQ WKH DLU
PHQWDO SURFHVV IRU LQWHUSUHWLQJ WKH LQIRUPDWLRQ
WUDIILF PDQDJHPHQW V\VWHP
FRQWDLQHG LQ D PHVVDJH DFFRPPRGDWHV WKH
PHVVDJH UHFHLYHG
$FKLHYLQJ HIIHFWLYH UDGLR FRPPXQLFDWLRQV LQYROYHV
PDQ\ IDFWRUV WKDW VKRXOG QRW EH FRQVLGHUHG LQ

7KLV PHQWDO SURFHVV FDQ EH VXPPDUL]HG DV IROORZV
LVRODWLRQ
0DQ\ IDFWRUV DUH FORVHO\ LQWHUUHODWHG DQG PRUH WKDQ x +RZ GR ZH SHUFHLYH WKH PHVVDJH "
RQH FDXVH XVXDOO\ LV LQYROYHG LQ D EUHDNGRZQ RI WKH

x +RZ GR ZH UHFRQVWUXFW WKH LQIRUPDWLRQ
FRPPXQLFDWLRQ ORRS
FRQWDLQHG LQ WKH PHVVDJH "
7KH IROORZLQJ SURYLGHV DQ RYHUYLHZ DQG GLVFXVVLRQ x +RZ GR ZH OLQN WKLV LQIRUPDWLRQ WR DQ REMHFWLYH
RI IDFWRUV LQYROYHG LQ HIIHFWLYH SLORW FRQWUROOHU RU WR DQ H[SHFWDWLRQ " DQG
FRPPXQLFDWLRQV
x :KDW ELDV RU HUURU LV LQWURGXFHG LQ WKLV SURFHVV"

3DJH
&UHZ UHVRXUFH PDQDJHPHQW &50 UHVHDUFKHV 7KH VWUXFWXUH DQG FRQVWUXFWLRQ RI WKH LQLWLDO DQG
KLJKOLJKW WKH LPSRUWDQFH RI WKH FRQWH[W DQG VXEVHTXHQW PHVVDJHV VKRXOG VXSSRUW WKLV FRQWH[W
H[SHFWDWLRQV LQ WKLV SURFHVV 1HYHUWKHOHVV E\
H[SHFWDWLRQV PD\ LQWURGXFH HLWKHU D SRVLWLYH RU
x )ROORZLQJ WKH FKURQRORJLFDO RUGHU RI WKH
QHJDWLYH ELDV LQ WKH HIIHFWLYHQHVV RI WKH
VHTXHQFH RI DFWLRQV
FRPPXQLFDWLRQ
x *URXSLQJ LQVWUXFWLRQV DQG QXPEHUV UHODWHG WR
HDFK DFWLRQ DQG
:RUNORDG IDWLJXH QRQDGKHUHQFH WR WKH VWHULOH
FRFNSLW UXOH GLVWUDFWLRQV LQWHUUXSWLRQV FRQIOLFWV DQG x /LPLWLQJ WKH QXPEHU RI LQVWUXFWLRQV LQ WKH
SUHVVXUH DUH DPRQJ WKH IDFWRUV WKDW PD\ DIIHFW WUDQVPLVVLRQ
DGYHUVHO\ SLORW FRQWUROOHU FRPPXQLFDWLRQV DQG
UHVXOW LQ
7KH LQWRQDWLRQ WKH VSHHG RI WUDQVPLVVLRQ DQG WKH
x ,QFRPSOHWH FRPPXQLFDWLRQV SODFHPHQW DQG GXUDWLRQ RI SDXVHV PD\ SRVLWLYHO\ RU
DGYHUVHO\ DIIHFW WKH FRUUHFW XQGHUVWDQGLQJ RI D
x 2PLVVLRQ RI FDOO VLJQ RU XVH RI DQ LQFRUUHFW FDOO
FRPPXQLFDWLRQ
VLJQ
x 8VH RI QRQVWDQGDUG SKUDVHRORJ\
x )DLOXUH WR OLVWHQ RU UHVSRQG DQG

0DVWHULQJ WKH /DQJXDJH
x )DLOXUH WR HIIHFWLYHO\ LPSOHPHQW WKH FRQILUPDWLRQ &50 VWXGLHV VKRZ WKDW ODQJXDJH GLIIHUHQFHV DUH D
FRUUHFWLRQ ORRS PRUH IXQGDPHQWDO REVWDFOH WR VDIHW\ LQ WKH FRFNSLW
WKDQ FXOWXUDO GLIIHUHQFHV
/DQJXDJH DQG &RPPXQLFDWLRQ ,Q UHVSRQVH WR D VHULHV RI DFFLGHQWV LQYROYLQJ

ODQJXDJH VNLOOV DV D FDXVDO IDFWRU DQ HIIRUW KDV
1R LQGLYLGXDO LV H[SHFWHG WR VSHDN DQ\ ODQJXDJH EHHQ LQLWLDWHG WR LPSURYH WKH (QJOLVKODQJXDJH VNLOOV
HYHQ KLVKHU RZQ QDWLYH ODQJXDJH FRUUHFWO\ DQG LQ D RI SLORWV DQG FRQWUROOHUV ZRUOGZLGH
VWDQGDUG ZD\ $FNQRZOHGJLQJ WKLV IDFW LV D ILUVW VWHS
WRZDUGV GHYHORSLQJ RU HQKDQFLQJ FRPPXQLFDWLRQ 1HYHUWKHOHVV HYHQ SLORWV DQG FRQWUROOHUV IRU ZKRP
VNLOOV (QJOLVK LV WKH QDWLYH ODQJXDJH PD\ QRW XQGHUVWDQG
DOO FRPPXQLFDWLRQV VSRNHQ LQ (QJOLVK EHFDXVH RI
7KH ODQJXDJH RI SLORW FRQWUROOHU FRPPXQLFDWLRQV LV UHJLRQDO DFFHQWV RU GLDOHFWV
LQWHQGHG WR RYHUFRPH WKLV EDVLF VKRUWFRPLQJ
/DQJXDJH GLIIHUHQFHV JHQHUDWH VLJQLILFDQW
7KH ILUVW SULRULW\ RI DQ\ FRPPXQLFDWLRQ LV WR FRPPXQLFDWLRQ GLIILFXOWLHV ZRUOGZLGH
HVWDEOLVK DQ RSHUDWLRQDO FRQWH[W E\ XVLQJ PDUNHUV
DQG PRGLILHUV WR GHILQH WKH IROORZLQJ HOHPHQWV RI WKH &RQWUROOHUV XVLQJ ERWK (QJOLVK IRU FRPPXQLFDWLRQ
FRQWH[W ZLWK LQWHUQDWLRQDO IOLJKWV DQG WKH FRXQWU\¶V QDWLYH
ODQJXDJH IRU FRPPXQLFDWLRQ ZLWK GRPHVWLF IOLJKWV
x 3XUSRVH FOHDUDQFH LQVWUXFWLRQ FRQGLWLRQDO SUHYHQW SLORWV IURP DFKLHYLQJ WKH GHVLUHG OHYHO RI
VLWXDWLRQDO DZDUHQHVV EHFDXVH RI ORVV RI ³SDUW\
VWDWHPHQW RU SURSRVDO TXHVWLRQ RU UHTXHVW
OLQH FRPPXQLFDWLRQV´
FRQILUPDWLRQ
x :KHQ LPPHGLDWHO\ DQWLFLSDWH H[SHFW 8VH RI 1RQVWDQGDUG 3KUDVHRORJ\

x :KDW DQG KRZ DOWLWXGH LH FOLPE GHVFHQG 8VH RI QRQVWDQGDUG SKUDVHRORJ\ LV D PDMRU REVWDFOH
PDLQWDLQ KHDGLQJ LH OHIW ULJKW DLUVSHHG WR YRLFH FRPPXQLFDWLRQV
DQG
6WDQGDUG SKUDVHRORJ\ LV LQWHQGHG WR EH HDVLO\ DQG
x :KHUH LH EHIRUH RU DW >«@ ZD\SRLQW TXLFNO\ UHFRJQL]HG

3DJH
3LORWV DQG FRQWUROOHUV H[SHFW HDFK RWKHU WR XVH /DFN RI 5HDGEDFN XVH RI ³5RJHU³ IRU
VWDQGDUG SKUDVHRORJ\ DFNQRZOHGJHPHQW RU ,QFRPSOHWH 5HDGEDFN
6WDQGDUG SKUDVHRORJ\ KHOSV OHVVHQ WKH DPELJXLWLHV 7KH WHUP 5RJHU RIWHQ LV PLVXVHG WKXV GHFUHDVLQJ
RI VSRNHQ ODQJXDJH DQG WKXV JXDUDQWHHV D FRPPRQ WKH SLORW¶V DQG WKH FRQWUROOHU¶V VLWXDWLRQDO DZDUHQHVV
XQGHUVWDQGLQJ DPRQJ VSHDNHUV
x 3LORW PD\ XVH 5RJHU WR DFNQRZOHGJH D PHVVDJH
x 2I GLIIHUHQW QDWLYH ODQJXDJHV RU FRQWDLQLQJ QXPEHUV LQVWHDG RI D IRUPDO
UHDGEDFN WKXV SUHYHQWLQJ HIIHFWLYH KHDUEDFN
x 2I WKH VDPH QDWLYH ODQJXDJH EXW ZKR XVH RU
DQG FRUUHFWLRQ E\ WKH FRQWUROOHU RU
XQGHUVWDQG ZRUGV GLIIHUHQWO\ HJ UHJLRQDO
DFFHQWV RU GLDOHFWV x &RQWUROOHU PD\ XVH 5RJHU WR DFNQRZOHGJH D
PHVVDJH UHTXLULQJ D VSHFLILF DQVZHU HJ D
1RQVWDQGDUG SKUDVHRORJ\ RU WKH RPLVVLRQ RI NH\ SRVLWLYH FRQILUPDWLRQ RU FRUUHFWLRQ VXFK DV
ZRUGV PD\ FKDQJH FRPSOHWHO\ WKH PHDQLQJ RI WKH DFNQRZOHGJLQJ D SLORW¶V VWDWHPHQW WKDW DQ
LQWHQGHG PHVVDJH UHVXOWLQJ LQ SRWHQWLDO FRQIOLFWV DOWLWXGH RU VSHHG UHVWULFWLRQ FDQQRW EH PHW
)RU H[DPSOH DQ\ PHVVDJH FRQWDLQLQJ D ³QXPEHU³

VKRXOG LQGLFDWH ZKHWKHU WKH QXPEHU UHIHUV WR DQ )DLOXUH RI &RUUHFW DQ (UURQHRXV 5HDGEDFN
DOWLWXGH D KHDGLQJ RU DQ DLUVSHHG ,QFOXGLQJ NH\ KHDUEDFN HUURUV
ZRUGV SUHYHQWV DQ HUURQHRXV LQWHUSUHWDWLRQ DQG
DOORZV DQ HIIHFWLYH UHDGEDFN KHDUEDFN 0RVW SLORWV SHUFHLYH WKH DEVHQFH RI DQ
DFNQRZOHGJHPHQW RU FRUUHFWLRQ IROORZLQJ D
3LORWV DQG FRQWUROOHUV PLJKW XVH QRQVWDQGDUG FOHDUDQFH UHDGEDFN DV DQ LPSOLFLW FRQILUPDWLRQ RI
SKUDVHRORJ\ ZLWK JRRG LQWHQWLRQV KRZHYHU VWDQGDUG WKH UHDGEDFN
SKUDVHRORJ\ PLQLPL]HV WKH SRWHQWLDO IRU
PLVXQGHUVWDQGLQJ 7KH ODFN RI DFNQRZOHGJHPHQW E\ WKH FRQWUROOHU
XVXDOO\ LV WKH UHVXOW RI IUHTXHQF\ FRQJHVWLRQ
UHTXLULQJ WKH FRQWUROOHU WR LVVXH FOHDUDQFHV DQG
%XLOGLQJ 6LWXDWLRQDO $ZDUHQHVV LQVWUXFWLRQV WR VHYHUDO DLUFUDIW
5DGLR FRPPXQLFDWLRQV LQFOXGLQJ SDUW\OLQH 8QFRUUHFWHG HUURQHRXV UHDGEDFN NQRZQ DV

FRPPXQLFDWLRQV FRQWULEXWH WR EXLOG WKH SLORW¶V DQG KHDUEDFN HUURUV PD\ FDXVH GHYLDWLRQV IURP WKH
WKH FRQWUROOHU¶V VLWXDWLRQDO DZDUHQHVV DVVLJQHG DOWLWXGH RU QRQFRPSOLDQFH ZLWK DOWLWXGH
UHVWULFWLRQV RU ZLWK UDGDU YHFWRUV
)OLJKW FUHZ DQG FRQWUROOHU PD\ SUHYHQW
PLVXQGHUVWDQGLQJV E\ SURYLGLQJ HDFK RWKHU ZLWK $ GHYLDWLRQ IURP D FOHDUDQFH RU LQVWUXFWLRQ PD\ QRW
DGYDQFH LQIRUPDWLRQ EH GHWHFWHG XQWLO WKH FRQWUROOHU REVHUYHV WKH
GHYLDWLRQ RQ KLVKHU UDGDU GLVSOD\
)UHTXHQF\ &RQJHVWLRQ /HVVWKDQUHTXLUHG YHUWLFDO RU KRUL]RQWDO VHSDUDWLRQV

DQG QHDU PLGDLU FROOLVLRQV RU UXQZD\ LQFXUVLRQV
)UHTXHQF\ FRQJHVWLRQ VLJQLILFDQWO\ DIIHFWV WKH XVXDOO\ DUH WKH UHVXOW RI KHDUEDFN HUURUV
FRUUHFW IORZ RI FRPPXQLFDWLRQV GXULQJ DSSURDFK
DQG ODQGLQJ SKDVHV DW KLJKGHQVLW\ DLUSRUWV WKLV
UHTXLUHV HQKDQFHG YLJLODQFH E\ SLORWV DQG E\ 3HUFHLYLQJ :KDW :DV ([SHFWHG RU :DQWHG
FRQWUROOHUV QRW ZKDW ZDV DFWXDOO\ VDLG
7KH ELDV RI H[SHFWDWLRQ FDQ DIIHFW WKH FRUUHFW

2PLVVLRQ RI &DOO 6LJQ XQGHUVWDQGLQJ RI FRPPXQLFDWLRQV E\ SLORWV DQG
FRQWUROOHUV
2PLWWLQJ WKH FDOO VLJQ RU XVLQJ DQ LQFRUUHFW FDOO VLJQ
MHRSDUGL]HV DQ HIIHFWLYH UHDGEDFN KHDUEDFN 7KLV LQYROYHV SHUFHLYLQJ ZKDW ZDV H[SHFWHG RU
ZDQWHG DQG QRW ZKDW ZDV DFWXDOO\ VDLG

3DJH
7KH ELDV RI H[SHFWDWLRQ FDQ OHDG WR 7DNLQJ D &OHDUDQFH RU ,QVWUXFWLRQ ,VVXHG WR
$QRWKHU $LUFUDIW
x 7UDQVSRVLQJ WKH QXPEHUV FRQWDLQHG LQ D
FOHDUDQFH HJ DQ DOWLWXGH RU )/ WR ZKDW ZDV

7KLV XVXDOO\ RFFXUV ZKHQ WZR DLUFUDIW ZLWK VLPLODU
H[SHFWHG EDVHG RQ H[SHULHQFH RU URXWLQH
VRXQGLQJ FDOO VLJQV DUH RQ WKH VDPH IUHTXHQF\ DQG
x 6KLIWLQJ D FOHDUDQFH RU LQVWUXFWLRQ IURP RQH DUH OLNHO\ WR UHFHLYH VLPLODU LQVWUXFWLRQV RU LI WKH FDOO
SDUDPHWHU WR DQRWKHU HJ SHUFHLYLQJ D VLJQ LV EORFNHG E\ DQRWKHU WUDQVPLVVLRQ
FOHDUDQFH WR PDLQWDLQ D GHJUHH KHDGLQJ DV
D FOHDUDQFH WR FOLPE GHVFHQG DQG PDLQWDLQ :KHQ SLORWV RI GLIIHUHQW DLUFUDIW ZLWK VLPLODU
)/ VRXQGLQJ FDOO VLJQV RPLW WKH FDOO VLJQ RQ UHDGEDFN
RU ZKHQ VLPXOWDQHRXV UHDGEDFN DUH PDGH E\ ERWK
SLORWV WKH HUURU PD\ JR XQQRWLFHG E\ WKH SLORWV DQG
)DLOXUH WR 6HHN &RQILUPDWLRQ ZKHQ D PHVVDJH WKH FRQWUROOHU
LV QRW XQGHUVWRRG
0LVXQGHUVWDQGLQJV PD\ LQFOXGH KDOIKHDUG ZRUGV RU )LOWHULQJ &RPPXQLFDWLRQV

JXHVVHGDW QXPEHUV
%HFDXVH RI RWKHU IOLJKW GHFN GXWLHV SLORWV WHQG WR
7KH SRWHQWLDO IRU PLVXQGHUVWDQGLQJ QXPEHUV ILOWHU FRPPXQLFDWLRQV OLVWHQLQJ SULPDULO\ WR
LQFUHDVHV ZKHQ D JLYHQ $7& FOHDUDQFH FRQWDLQV FRPPXQLFDWLRQV WKDW EHJLQ E\ WKHLU DLUFUDIW FDOO VLJQ
PRUH WKDQ WZR LQVWUXFWLRQV DQG QRW KHDULQJ PRVW RWKHU FRPPXQLFDWLRQV
)RU ZRUNORDG UHDVRQV FRQWUROOHUV DOVR PD\ ILOWHU

)DLOXUH WR 5HTXHVW &ODULILFDWLRQ ZKHQ LQ GRXEW FRPPXQLFDWLRQV HJ QRW KHDULQJ RU UHVSRQGLQJ WR
D SLORW UHDGEDFN ZKLOH HQJDJHG LQ LVVXLQJ
5HOXFWDQFH WR VHHN FRQILUPDWLRQ RU FODULILFDWLRQ PD\ FOHDUDQFHVLQVWUXFWLRQV WR RWKHU DLUFUDIW RU HQVXULQJ
FDXVH SLORWV WR HLWKHU LQWHUQDO FRRUGLQDWLRQ
7R PDLQWDLQ VLWXDWLRQDO DZDUHQHVV WKLV ILOWHULQJ

x $FFHSW DQ LQDGHTXDWH LQVWUXFWLRQ RYHUUHOLDQFH
VHOHFWLRQ SURFHVV VKRXOG EH DGDSWHG DFFRUGLQJ WR
RQ $7& RU
WKH IOLJKW SKDVH IRU PRUH HIIHFWLYH OLVWHQLQJ
x 'HILQH E\ WKHPVHOYHV WKH PRVW SUREDEOH

)RU H[DPSOH ZKHQHYHU RFFXS\LQJ DQ DFWLYH UXQZD\
LQWHUSUHWDWLRQ
HJ ZKLOH EDFNWUDFNLQJ RU KROGLQJ LQWR SRVLWLRQ RU
ZKHQ FRQGXFWLQJ D ILQDO DSSURDFK WR DQ DVVLJQHG
)DLOLQJ WR UHTXHVW FODULILFDWLRQ PD\ FDXVH IOLJKW FUHZ UXQZD\ WKH SLORW¶V VKRXOG OLVWHQ DQG JLYH DWWHQWLRQ WR
WR EHOLHYH HUURQHRXVO\ WKDW WKH\ KDYH UHFHLYHG DQ DOO FRPPXQLFDWLRQV UHODWHG WR WKLV UXQZD\
H[SHFWHG FOHDUDQFH HJ FOHDUDQFH WR FURVV DQ
DFWLYH UXQZD\
7LPHOLQHVV RI &RPPXQLFDWLRQV
)DLOXUH WR 4XHVWLRQ DQ ,QFRUUHFW RU ,QDGHTXDWH 'HYLDWLQJ IURP DQ $7& FOHDUDQFH PD\ EH UHTXLUHG
$7& ,QVWUXFWLRQ IRU RSHUDWLRQDO UHDVRQV HJ SHUIRUPLQJ D KHDGLQJ
RU DOWLWXGH GHYLDWLRQ IRU ZHDWKHU DYRLGDQFH LQDELOLW\
)DLOLQJ WR TXHVWLRQ DQ LQFRUUHFW RU LQDGHTXDWH WR PHHW D UHVWULFWLRQ
LQVWUXFWLRQ PD\ FDXVH D FUHZ WR DFFHSW DQ DOWLWXGH
FOHDUDQFH EHORZ WKH VHFWRU 06$ RU D KHDGLQJ WKDW %RWK WKH SLORW DQG WKH FRQWUROOHU QHHG WLPH WR
SODFHV WKH DLUFUDIW QHDU REVWUXFWLRQV DFFRPPRGDWH WKLV GHYLDWLRQ WKHUHIRUH $7& VKRXOG
EH QRWLILHG DV HDUO\ DV SRVVLEOH WR REWDLQ D WLPHO\
DFNQRZOHGJHPHQW

3DJH
6LPLODUO\ ZKHQ DERXW WR HQWHU D NQRZQ QRQUDGDU 3LORW &RQWUROOHU &RPPXQLFDWLRQV LQ

FRQWUROOHG IOLJKW LQIRUPDWLRQ UHJLRQ ),5 FRQWDFWLQJ (PHUJHQF\ 6LWXDWLRQV
WKH QHZ DLU URXWH WUDIILF FRQWURO FHQWHU $57&&
DSSUR[LPDWHO\ PLQXWHV EHIRUH UHDFKLQJ WKH ),5
,Q DQ HPHUJHQF\ WKH IOLJKWFUHZ DQG WKH FRQWUROOHU
ERXQGDU\ PD\ SUHYHQW PLVXQGHUVWDQGLQJV RU OHVV
VKRXOG DGRSW D FOHDU DQG FRQFLVH FRPPXQLFDWLRQV
WKDQUHTXLUHG VHSDUDWLRQV
SDWWHUQ DV VXJJHVWHG KHUHDIWHU
%ORFNHG 7UDQVPLVVLRQV
VLPXOWDQHRXV FRPPXQLFDWLRQV )OLJKW FUHZ
%ORFNHG WUDQVPLVVLRQV RIWHQ DUH WKH UHVXOW RI QRW 7KH VWDQGDUG ,&$2 SKUDVHRORJ\ 3DQ 3DQ ± 3DQ
LPPHGLDWHO\ UHOHDVLQJ WKH SXVKWRWDON VZLWFK DIWHU D 3DQ ± 3DQ 3DQ RU 0D\GD\ ± 0D\GD\ ± 0D\GD\
FRPPXQLFDWLRQ LH GHSHQGLQJ RQ WKH FULWLFDOLW\ RI WKH SUHYDLOLQJ
FRQGLWLRQ VKRXOG EH XVHG WR DOHUW WKH FRQWUROOHU DQG
$Q H[FHVVLYH SDXVH LQ D PHVVDJH LH KROGLQJ WKH WULJJHU DQ DSSURSULDWH UHVSRQVH
SXVKWRWDON VZLWFK ZKLOH SUHSDULQJ WKH QH[W LWHP RI
WKH WUDQVPLVVLRQ DOVR PD\ UHVXOW LQ EORFNLQJ SDUW RI
WKH UHVSRQVH RU SDUW RI DQRWKHU PHVVDJH &RQWUROOHUV
6LPXOWDQHRXV WUDQVPLVVLRQ RI FRPPXQLFDWLRQV E\ &RQWUROOHUV VKRXOG UHFRJQL]H WKDW ZKHQ IDFHG ZLWK
WZR VWDWLRQV LH WZR DLUFUDIW RU RQH DLUFUDIW DQG DQ HPHUJHQF\ VLWXDWLRQ WKH IOLJKW FUHZ¶V PRVW
$7& UHVXOWV LQ RQH RI WKH WZR RU ERWK LPSRUWDQW QHHGV DUH
WUDQVPLVVLRQV EHLQJ EORFNHG DQG XQKHDUG E\ WKH

RWKHU VWDWLRQV RU EHLQJ KHDUG DV D EX]]LQJ VRXQG RU x 7LPH
DV D VTXHDO
x $LUVSDFH DQG
7KH DEVHQFH RI UHDGEDFN IURP WKH SLORW RU WKH
DEVHQFH RI KHDUEDFN DFNQRZOHGJHPHQW IURP WKH
x 4XLHW
FRQWUROOHU VKRXOG EH FRQVLGHUHG DV DQ LQGLFDWLRQ RI
D EORFNHG WUDQVPLVVLRQ DQG WKXV SURPSW D UHTXHVW
WR UHSHDW RU FRQILUP WKH LQIRUPDWLRQ 7KH FRQWUROOHU¶V UHVSRQVH WR WKH HPHUJHQF\
VLWXDWLRQ FRXOG EH SDWWHUQHG DIWHU WKH $66,67
%ORFNHG WUDQVPLVVLRQV DUH UHVSRQVLEOH IRU PDQ\ PHPRU\ DLG SURSRVHG EHORZ
DOWLWXGH GHYLDWLRQV PLVVHG WXUQRIIV DQG WDNHRIIV DQG

ODQGLQJV ZLWKRXW FOHDUDQFHV x $FNQRZOHGJH
(QVXUH WKDW WKH UHSRUWHG HPHUJHQF\ LV ZHOO
&RPPXQLFDWLQJ ZLWK $7& RQ 6SHFLILF XQGHUVWRRG DQG DFNQRZOHGJHG
(YHQWV
x 6HSDUDWH
7KH IROORZLQJ HYHQWV RU HQFRXQWHUV VKRXOG EH

UHSRUWHG DV VRRQ DV SUDFWLFDO WR $7& VWDWLQJ WKH (VWDEOLVK DQG PDLQWDLQ VHSDUDWLRQ ZLWK RWKHU
QDWXUH RI WKH HYHQW RU HQFRXQWHU WKH DFWLRQV WDNHQ WUDIILF DQGRU WHUUDLQ
DQG WKH IOLJKW FUHZ¶V IXUWKHU LQWHQWLRQV DV

DSSOLFDEOH x 6LOHQFH
x 7&$6 UHVROXWLRQ DGYLVRU\ 5$ HYHQWV

,PSRVH VLOHQFH RQ \RXU FRQWURO IUHTXHQF\ LI
x 6HYHUH WXUEXOHQFH HQFRXQWHU QHFHVVDU\ DQG
x 9ROFDQLF DVK HQFRXQWHU 'R QRW GHOD\ RU GLVWXUE XUJHQW FRFNSLW DFWLRQ
E\ XQQHFHVVDU\ WUDQVPLVVLRQV
x :LQGVKHDU RU PLFUREXUVW HQFRXQWHU DQG
x *3:67$:6 WHUUDLQ DYRLGDQFH PDQHXYHU

3DJH
x ,QIRUP x $OHUWQHVV WR UHTXHVW FODULILFDWLRQ RU FRQILUPDWLRQ

ZKHQ LQ GRXEW
,QIRUP \RXU VXSHUYLVRU DQG RWKHU VHFWRUV
x 5HDGLQHVV WR TXHVWLRQ DQ LQFRUUHFW FOHDUDQFH RU
XQLWV DQG DLUSRUWV DV DSSURSULDWH
DQ LQDGHTXDWH LQVWUXFWLRQ
x 6XSSRUW x 3UHYHQWLQJ VLPXOWDQHRXV WUDQVPLVVLRQV
3URYLGH PD[LPXP VXSSRUW WR WKH IOLJKW FUHZ

x $GDSWLQJ OLVWHQLQJ RI SDUW\OLQH FRPPXQLFDWLRQV
DV D IXQFWLRQ RI WKH IOLJKW SKDVH DQG
x 7LPH x $GRSWLQJ FOHDU FRQFLVH DQG DGDSWHG

FRPPXQLFDWLRQV LQ DQ HPHUJHQF\ VLWXDWLRQ
$OORZV IOLJKW FUHZ VXIILFLHQW WLPH WR PDQDJH
WKH HPHUJHQF\ VLWXDWLRQ
,Q DGGLWLRQ 2SHUDWLRQV 0DQXDO DQGRU 623V VKRXOG
GHILQH WKH IROORZLQJ FRPSDQ\ SROLFLHV
$ZDUHQHVV DQG 7UDLQLQJ 3URJUDP x 3ULPDU\ ODQJXDJH IRU XVH ZLWK $7& DQG LQ WKH
FRFNSLW DQG
$ FRPSDQ\ DZDUHQHVV DQG WUDLQLQJ SURJUDP RQ SLORW
FRQWUROOHU FRPPXQLFDWLRQV VKRXOG LQYROYH ERWK x 8VH RI KHDGVHWV EHORZ IW
$7& SHUVRQQHO DQG SLORWV HJ GXULQJ PHHWLQJV DQG
VLPXODWRU VHVVLRQV WR SURPRWH D PXWXDO
XQGHUVWDQGLQJ RI HDFK RWKHU¶V ZRUNLQJ HQYLURQPHQW $VVRFLDWHG %ULHILQJ 1RWHV
LQFOXGLQJ
x 0RGHUQ IOLJKW GHFNV HJ )06 UHSURJUDPPLQJ

7KH IROORZLQJ %ULHILQJ 1RWHV PD\ EH UHYLHZHG WR
H[SDQG WKH GLVFXVVLRQ RQ (IIHFWLYH 3LORW FRQWUROOHU
DQG $7& HTXLSPHQW HJ HOLPLQDWLRQ RI SULPDU\
&RPPXQLFDWLRQV
UHWXUQV VXFK DV ZHDWKHU UHWXUQV RQ V\QWKHWLF
UDGDU GLVSOD\V
x 2SHUDWLRQDO UHTXLUHPHQWV HJ DLUFUDIW x +) ,VVXHV LQ $SSURDFKDQG/DQGLQJ

GHFHOHUDWLRQ FKDUDFWHULVWLFV SHUIRUPDQFH $FFLGHQWV
OLPLWDWLRQV DQG
x &50 ,VVXHV LQ $SSURDFKDQG /DQGLQJ
x 3URFHGXUHV HJ 623V DQG SUDFWLFHV
$FFLGHQWV
HJ &50
6SHFLDO HPSKDVLV VKRXOG EH SODFHG RQ SLORW
FRQWUROOHU FRPPXQLFDWLRQV DQG WDVN PDQDJHPHQW 0DQDJLQJ ,QWHUUXSWLRQV DQG
GXULQJ HPHUJHQF\ VLWXDWLRQV 'LVWUDFWLRQV

$OWKRXJK DFKLHYLQJ HIIHFWLYH SLORW FRQWUROOHU 5HJXODWRU\ 5HIHUHQFHV
FRPPXQLFDWLRQV UHTXLUHV D JOREDO DSSURDFK WKH
LPSRUWDQFH RI WKH IROORZLQJ NH\ SRLQWV VKRXOG EH 5HIHUHQFH UHJDUGLQJ SLORW FRQWUROOHU
HPSKDVL]HG FRPPXQLFDWLRQV FDQ EH IRXQG LQ PDQ\ LQWHUQDWLRQDO
DQG QDWLRQDO SXEOLFDWLRQV VXFK DV

x 8QGHUVWDQGLQJ RI SLORWV DQG FRQWUROOHUV
UHVSHFWLYH ZRUNLQJ HQYLURQPHQWV DQG x ,&$2 ± $QQH[ ± 2SHUDWLRQ RI $LUFUDIW 3DUW , ±
FRQVWUDLQWV ,QWHUQDWLRQDO &RPPHUFLDO $LU 7UDQVSRUW ±
$HURSODQHV $SSHQGL[

x 'LVFLSOLQHG XVH RI VWDQGDUG SKUDVHRORJ\
x 6WULFW DGKHUHQFH WR WKH SLORW FRQWUROOHU
FRPPXQLFDWLRQ ORRS LH FRQILUPDWLRQ
3$165$& 'RF
FRUUHFWLRQ SURFHVV

3DJH

1R DSSOLFDEOH 1RY
x ,&$2 $QQH[ ± 9ROXPH ,, &RPPXQLFDWLRQ

SURFHGXUHV ± &KDSWHU $HURQDXWLFDO 0RELOH
6HUYLFH
x ,&$2 0DQXDO RI 5DGLRWHOHSKRQ\ 'RF

'RF

x 7KH UHVSHFWLYH QDWLRQDO $HURQDXWLFDO

,QIRUPDWLRQ 3XEOLFDWLRQV $,3V
x 1DWLRQDO SXEOLFDWLRQV VXFK DV
WKH 86 )HGHUDO $YLDWLRQ $GPLQLVWUDWLRQ

)$$ $HURQDXWLFDO ,QIRUPDWLRQ 0DQXDO
$,0 ± 2IILFLDO JXLGH WR EDVLF IOLJKW
LQIRUPDWLRQ DQG DLU WUDIILF FRQWURO SURFHGXUHV
WKH JXLGH RI 3KUDVHRORJ\ IRU 5DGLRWHOHSKRQ\

3URFHGXUHV LVVXHG E\ WKH )UHQFK 'LUHFWLRQ
GH OD 1DYLJDWLRQ $HULHQQH '1$
WKH 5DGLRWHOHSKRQ\ 0DQXDO LVVXHG E\ WKH

8. &LYLO $YLDWLRQ $XWKRULW\ &LYLO $YLDWLRQ
3XEOLFDWLRQ &$3
x )$5 RU

&50 7UDLQLQJ IRU SLORWV FDELQ FUHZ DQG DLUFUDIW
GLVSDWFKHUV
x )$$ $& ± $HURQDXWLFDO 'HFLVLRQ 0DNLQJ
x -$5236 RU &50

7UDLQLQJ

3DJH
,QWUD&RFNSLW&RPPXQLFDWLRQV
0DQDJLQJ,QWHUUXSWLRQVDQG'LVWUDFWLRQVLQ&RFNSLW

7KH RPLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ 7KH IROORZLQJ FDXVDO IDFWRUV IUHTXHQWO\ REVHUYHG LQ
LV WKH PRVW IUHTXHQW FDXVDO IDFWRUV LQ DSSURDFK DQG DSSURDFKDQGODQGLQJ DFFLGHQWV RIWHQ DUH WKH UHVXOW
ODQGLQJ DFFLGHQWV RI LQWHUUXSWLRQV RU GLVWUDFWLRQV LQ WKH FRFNSLW
,QWHUUXSWLRQV HJ GXH WR $7& FRPPXQLFDWLRQV
)DFWRU RI
DQG GLVWUDFWLRQV HJ GXH RQH FDELQ DWWHQGDQW
HQWHULQJ WKH FRFNSLW RFFXU IUHTXHQWO\ VRPH FDQQRW (YHQWV
EH DYRLGHG VRPH FDQ EH PLQLPL]HG RU HOLPLQDWHG
7KH IROORZLQJ DVSHFWV VKRXOG EH FRQVLGHUHG WR 2PLVVLRQ RI DFWLRQ RU
DVVHVV FRPSDQ\ H[SRVXUH DQG SHUVRQDO H[SRVXUH LQDSSURSULDWH DFWLRQ
DQG WR GHYHORS SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
GHIHQVH WR OHVVHQ WKH HIIHFWV RI LQWHUUXSWLRQV DQG ,QDGHTXDWH FUHZ FRRUGLQDWLRQ
GLVWUDFWLRQV LQ WKH FRFNSLW FURVVFKHFN DQG EDFNXS
x 5HFRJQL]H WKH SRWHQWLDO VRXUFHV RI LQWHUUXSWLRQV
DQG GLVWUDFWLRQV ,QVXIILFLHQW KRUL]RQWDO RU YHUWLFDO
x 8QGHUVWDQG WKHLU HIIHFW RQ WKH IORZ RI FRFNSLW
GXWLHV
x 5HGXFH LQWHUUXSWLRQV DQG GLVWUDFWLRQV HJ E\
,QDGHTXDWH RU LQVXIILFLHQW
DGRSWLQJ WKH 6WHULOH &RFNSLW 5XOH XQGHUVWDQGLQJ RI SUHYDLOLQJ
FRQGLWLRQV
x 'HYHORS SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
GHIHQVH WR PLQLPL]H WKH H[SRVXUH WR 6ORZ RU GHOD\HG DFWLRQ
LQWHUUXSWLRQV DQG GLVWUDFWLRQV DQG
x 'HYHORS WHFKQLTXHV IRU OHVVHQ WKH HIIHFWV RI
LQWHUUXSWLRQV DQG GLVWUDFWLRQV ,QFRUUHFW RU LQFRPSOHWH SLORW
FRQWUROOHU FRPPXQLFDWLRQV
7DEOH
(IIHFWV RI 'LVWUDFWLRQV DQG ,QWHUUXSWLRQV
,QWUD&RFNSLW &RPPXQLFDWLRQV ² 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW

3DJH
7\SHV RI ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV %HLQJ IDFHG ZLWK FRQFXUUHQW WDVN GHPDQGV WKH
QDWXUDO KXPDQ WHQGHQF\ LV WR SHUIRUP RQH WDVN WR
,QWHUUXSWLRQV DQG GLVWUDFWLRQV LQ WKH FRFNSLW PD\ EH WKH GHWULPHQW RI DQRWKHU
VXEWOH RU EH PRPHQWDU\ EXW WKH\ FDQ EH GLVUXSWLYH
WR WKH IOLJKW FUHZ 8QOHVV PLWLJDWHG E\ DGHTXDWH WHFKQLTXHV WKH
GLVUXSWLRQ DQG ODSVH RI DWWHQWLRQ PD\ UHVXOW LQ
,QWHUUXSWLRQV RU GLVWUDFWLRQV FDQ EH FODVVLILHG LQ
WKUHH PDLQ FDWHJRULHV DV IROORZV x 1RW PRQLWRULQJ WKH IOLJKW SDWK SRVVLEO\ UHVXOWLQJ
LQ DQ DOWLWXGH RU FRXUVH GHYLDWLRQ RU D FRQWUROOHG
x &RPPXQLFDWLRQV IOLJKW LQWR WHUUDLQ
UHFHLYLQJ WKH ILQDO ZHLJKWV ZKLOH WD[LLQJ RU

x 0LVVLQJ RU PLVLQWHUSUHWLQJ DQ $7& LQVWUXFWLRQ
D IOLJKW DWWHQGDQW HQWHULQJ WKH FRFNSLW SRVVLEO\ UHVXOWLQJ LQ WUDIILF FRQIOLFW RU UXQZD\
LQFXUVLRQ
x +HDGGRZQ ZRUN
x 2PLWWLQJ DQ DFWLRQ DQG IDLOLQJ WR GHWHFW DQG
UHDGLQJ WKH DSSURDFK FKDUW RU FRUUHFW WKH UHVXOWLQJ DEQRUPDO FRQGLWLRQ RU
FRQILJXUDWLRQ HJ LQWHUUXSWLRQ GXULQJ WKH
SURJUDPPLQJ WKH )06 DQG
UHDGLQJ RI D QRUPDO FKHFNOLVW RU
x 5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU WR

DQ XQDQWLFLSDWHG VLWXDWLRQ
x ([SHULHQFLQJ WDVN RYHUORDG LH EHLQJ ³ EHKLQG
WKH DLUFUDIW ´
V\VWHP PDOIXQFWLRQ RU
7UDIILF FROOLVLRQ DYRLGDQFH V\VWHP 7&$6

5HGXFLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV
WUDIILF DGYLVRU\ 7$ RU UHVROXWLRQ DGYLVRU\
5$
$FNQRZOHGJLQJ WKDW IOLJKW FUHZ PD\ KDYH FRQWURO
RYHU VRPH LQWHUUXSWLRQV GLVWUDFWLRQV DQG QRW RYHU
0LQRU GLVUXSWLRQV HJ D PLQRU HTXLSPHQW
VRPH RWKHUV LV WKH ILUVW VWHS LQ GHYHORSLQJ
PDOIXQFWLRQ FDQ WXUQ D URXWLQH IOLJKW LQWR D
SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH
FKDOOHQJLQJ HYHQW
$FWLRQV WKDW PD\ EH FRQWUROOHG HJ 623¶V DFWLRQV
(IIHFW RI ,QWHUUXSWLRQV RU 'LVWUDFWLRQV LQLWLDWLRQ RI QRUPDO FKHFNOLVWV

VFKHGXOHG GXULQJ SHULRGV RI OHVV OLNHO\ GLVUXSWLRQ WR
« VKRXOG EH
SUHYHQW LQWHUIHUHQFH ZLWK DFWLRQV WKDW FDQQRW EH

7KH SULPDU\ HIIHFW RI LQWHUUXSWLRQV RU GLVWUDFWLRQV LV
FRQWUROOHG HJ $7& FRPPXQLFDWLRQV RU IOLJKW
WR EUHDN WKH IORZ RI RQJRLQJ FRFNSLW DFWLYLWLHV
DWWHQGDQW LQWHUUXSWLRQV
LH DFWLRQV RU FRPPXQLFDWLRQV WKLV LQFOXGHV
x 623V $GKHULQJ WR WKH 6WHULOH &RFNSLW 5XOH FDQ ODUJHO\

UHGXFH LQWHUUXSWLRQV DQG GLVWUDFWLRQV
x 1RUPDO FKHFNOLVWV
7KH 6WHULOH &RFNSLW 5XOH UHIOHFWV WKH UHTXLUHPHQW RI
x &RPPXQLFDWLRQV LH OLVWHQLQJ SURFHVVLQJ
86 )$5 ± 3DUW
UHVSRQGLQJ
x 0RQLWRULQJ WDVNV LH V\VWHPV PRQLWRULQJ

x ³ 1R IOLJKW FUHZPHPEHU PD\ HQJDJH LQ QRU PD\
DQ\ SLORW LQ FRPPDQG SHUPLW DQ\ DFWLYLW\ GXULQJ
3)31) PXWXDO FURVVFKHFN DQG EDFNXS DQG
D FULWLFDO SKDVH RI IOLJKW ZKLFK FRXOG GLVWUDFW DQ\
x 3UREOHP VROYLQJ DFWLYLWLHV IOLJKW FUHZPHPEHU IURP WKH SHUIRUPDQFH RI KLV
RU KHU GXWLHV RU ZKLFK FRXOG LQWHUIHUH LQ DQ\ ZD\
ZLWK WKH SURSHU FRQGXFW RI WKRVH GXWLHV ³
7KH GLYHUWHG DWWHQWLRQ UHVXOWLQJ IURP WKH LQWHUUXSWLRQ
GLVWUDFWLRQ XVXDOO\ OHDYHV WKH IOLJKW FUHZ ZLWK WKH
IHHOLQJ RI EHLQJ UXVKHG DQG IDFHG ZLWK FRPSHWLQJ
SUHHPSWLQJ WDVNV

3DJH
)RU WKH SXUSRVH RI WKLV UHTXLUHPHQW DQ ³ DFWLYLW\ ³ 7KH LPSOHPHQWDWLRQ RI WKH VWHULOH FRFNSLW UXOH E\
LQFOXGHV FDELQ FUHZ FUHDWHV WZR FKDOOHQJHV
x ³« HQJDJLQJ LQ QRQHVVHQWLDO FRQYHUVDWLRQ x +RZ WR LGHQWLI\ WKH IW OLPLW "
ZLWKLQ WKH FRFNSLW DQG QRQHVVHQWLDO
x +RZ WR LGHQWLI\ RFFXUUHQFHV WKDW ZDUUDQW
FRPPXQLFDWLRQ EHWZHHQ WKH FDELQ DQG FRFNSLW
EUHDNLQJ WKH VWHULOH FRFNSLW UXOH "
FUHZV « ³
6HYHUDO PHWKRGV IRU VLJQDOLQJ WR WKH FDELQ FUHZ

7KH WHUP ³ FULWLFDO SKDVHV RI IOLJKW ³ HQFRPSDVVHV WKH FURVVLQJ RI WKH IHHW OLPLW KDYH EHHQ
HYDOXDWHG HJ XVLQJ WKH DOOFDELQDWWHQGDQWV FDOO RU
x ³ DOO JURXQG RSHUDWLRQV LQYROYLQJ WD[L WDNHRII
D SXEOLFDGGUHVV DQQRXQFHPHQW
DQG ODQGLQJ DQG DOO RWKHU IOLJKW RSHUDWLRQV
EHORZ IHHW H[FHSW FUXLVH IOLJKW ³
:KDWHYHU PHWKRG LV XVHG LW VKRXOG QRW FUHDWH LWV
RZQ GLVWUDFWLRQ WR WKH IOLJKW FUHZ
,Q WKH )$5V XQGHUVWDQGLQJ WKH IHHW OLPLW LV
GHILQHG DV IW 06/
7KH IROORZLQJ RFFXUUHQFHV DUH FRQVLGHUHG WR
ZDUUDQW EUHDNLQJ WKH VWHULOH FRFNSLW UXOH
:KHQ RSHUDWLQJ WR RU IURP D KLJK HOHYDWLRQ DLUSRUW D
GHILQLWLRQ EDVHG RQ IW $*/ PLJKW EH
x )LUH EXUQLQJ RGRU RU VPRNH LQ WKH FDELQ
FRQVLGHUHG DV PRUH DSSURSULDWH
x 0HGLFDO HPHUJHQF\
&RPSO\LQJ ZLWK WKH VWHULOH FRFNSLW UXOH GXULQJ WD[L
RXW DQG WD[LLQ UHTXLUHV H[WUD GLVFLSOLQH DV WD[L x 8QXVXDO QRLVH RU YLEUDWLRQ HJ HYLGHQFH RI
SKDVHV RIWHQ SURYLGH D UHOLHI EHWZHHQ SKDVHV RI WDLOVWULNH
KLJK ZRUNORDG DQG FRQFHQWUDWLRQ
x (QJLQH ILUH WDLO SLSH RU QDFHOOH WRUFKLQJ IODPH
,QWHUUXSWLRQV GLVWUDFWLRQV GXULQJ WD[L LV WKH PDLQ
FDXVDO IDFWRU LQ WDNHRII DFFLGHQWV DQG UXQZD\ x )XHO RU IOXLG OHDNDJH
LQFXUVLRQV
x (PHUJHQF\ H[LW RU GRRU XQVDIH FRQGLWLRQ
DOWKRXJK WKLV FRQGLWLRQ LV DQQXQFLDWHG WR WKH
7KH VWHULOH FRFNSLW UXOH KDV EHHQ DGRSWHG E\ QRQ
IOLJKW FUHZ
86 RSHUDWRUV DQG LV DOVR FRYHUHG DOWKRXJK LQ OHVV
H[SOLFLW WHUPV LQ WKH -$5236 G
x ([WUHPH ORFDO WHPSHUDWXUH FKDQJHV
7KH VWHULOH FRFNSLW UXOH VKRXOG EH LPSOHPHQWHG ZLWK x (YLGHQFH RI GHLFLQJ SUREOHP
JRRG FRPPRQ VHQVH LQ RUGHU QRW WR EUHDN WKH
FRPPXQLFDWLRQ OLQH EHWZHHQ IOLJKW FUHZPHPEHUV RU x &DUW VWRZDJH SUREOHP
EHWZHHQ FDELQ FUHZ DQG IOLJKW FUHZ
x 6XVSLFLRXV XQFODLPHG EDJ RU SDFNDJH DQG
$GKHUHQFH WR WKH 6WHULOH &RFNSLW 5XOH VKRXOG QRW
DIIHFW x $Q\ RWKHU FRQGLWLRQ DV GHHPHG UHOHYDQW E\ WKH
VHQLRU FDELQ FUHZPHPEHU SXUVHU
x 8VH RI JRRG &50 SUDFWLFHV E\ IOLJKW FUHZ DQG
7KLV OLVW PD\ QHHG WR EH DGMXVWHG IRU ORFDO

x &RPPXQLFDWLRQ RI HPHUJHQF\ RU VDIHW\ UHODWHG
UHJXODWLRQV RU WR VXLW HDFK LQGLYLGXDO FRPSDQ\
LQIRUPDWLRQ E\ FDELQ FUHZ
SROLF\
7KH 86 )$$ DFNQRZOHGJHV WKDW LW LV EHWWHU WR &DELQ FUHZPHPEHUV PD\ KHVLWDWH WR UHSRUW
EUHDN WKH VWHULOH FRFNSLW UXOH WKDQ WR IDLO WR WHFKQLFDO RFFXUUHQFHV WR WKH IOLJKW FUHZ HJ
FRPPXQLFDWH EHFDXVH RI FXOWXUDO DVSHFWV FRPSDQ\ SROLFLHV RU
LQWLPLGDWLRQ

3DJH
7R RYHUFRPH WKLV UHOXFWDQFH WKH LPSOHPHQWDWLRQ 7KH IROORZLQJ OLQHVRIGHIHQVH DGGUHVV WKH WKUHH
DQG LQWHUSUHWDWLRQ RI WKH VWHULOH FRFNSLW UXOH VKRXOG IDPLOLHV RI FRFNSLW GLVUXSWLRQV DQG WKXV SUHYHQW RU
EH GLVFXVVHG GXULQJ FDELQ FUHZ &50 WUDLQLQJ DQG PLQLPL]H WKH LQWHUIHUHQFH RI FRPSHWLQJ RU
UHFDOOHG E\ WKH FDSWDLQ GXULQJ WKH SUHIOLJKW EULHILQJ SUHHPSWLQJ WDVNV
x &RPPXQLFDWLRQV
$QDO\VHV RI DYLDWLRQ VDIHW\ UHSRUWV LQGLFDWH WKDW WKH
PRVW IUHTXHQW YLRODWLRQV RI WKH VWHULOH FRFNSLW UXOH NHHS LQWUDFRFNSLW FRPPXQLFDWLRQV EULHI FOHDU
DUH FDXVHG E\ WKH IROORZLQJ DQG FRQFLVH DQG
x 1RQIOLJKWUHODWHG FRQYHUVDWLRQV
LQWHUUXSW FRQYHUVDWLRQV ZKHQ DSSURDFKLQJ WKH
GHILQHG QH[W WDUJHW RU WKH QH[W DOWLWXGH
UHVWULFWLRQ FRQVWUDLQW
x 'LVWUDFWLRQV E\ FDELQ FUHZPHPEHUV
x 1RQIOLJKWUHODWHG UDGLR FDOOV DQGRU

x +HDGGRZQ ZRUN )06 SURJUDPPLQJ RU FKDUW
UHYLHZ
x 1RQHVVHQWLDO SXEOLFDGGUHVV DQQRXQFHPHQWV GHILQH WDVN VKDULQJ IRU )06 SURJUDPPLQJ RU

UHSURJUDPPLQJ GHSHQGLQJ RQ WKH OHYHO RI
DXWRPDWLRQ EHLQJ XVHG DQG RQ WKH IOLJKW
3UHYHQWLRQ 6WUDWHJLHV DQG /LQHVRIGHIHQVH SKDVH 623V
SODQ ORQJ KHDGGRZQ WDVNV LQ ORZZRUNORDG

$ KLJK OHYHO RI LQWHUDFWLRQ DQG FRPPXQLFDWLRQ
SHULRGV DQG
EHWZHHQ IOLJKW FUHZPHPEHUV DQG EHWZHHQ IOLJKW
FUHZ DQG FDELQ FUHZV FRQVWLWXWHV WKH ILUVW OLQH RI DQQRXQFH WKDW \RX DUH JRLQJ ³KHDGGRZQ´
GHIHQVH WR UHGXFH HUURUV
x 5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU WR
7KH IRXQGDWLRQV IRU DQ HIIHFWLYH OLQH RI DQ XQDQWLFLSDWHG VLWXDWLRQ
FRPPXQLFDWLRQ DQG LQWHUDFWLRQ EHWZHHQ DOO IOLJKW
FUHZPHPEHUV DQG FDELQ FUHZPHPEHUV VKRXOG EH
NHHS WKH $3 HQJDJHG WR GHFUHDVH ZRUNORDG
HPEHGGHG LQ
XQOHVV RWKHUZLVH UHTXLUHG
x &RPSDQ\ SROLFLHV
DGKHUH WR 3) 31) WDVN VKDULQJ IRU DEQRUPDO
HPHUJHQF\ FRQGLWLRQV 31) VKRXOG PDLQWDLQ
x 623V VLWXDWLRQDO DZDUHQHVV PRQLWRU DQG EDFNXS
WKH 3) DQG
x &50 WUDLQLQJ DQG
JLYH SDUWLFXODU DWWHQWLRQ WR QRUPDO FKHFNOLVWV

x /HDGHUVKLS UROH RI WKH SLORW LQ FRPPDQG EHFDXVH KDQGOLQJ DQ DEQRUPDO FRQGLWLRQ PD\
FRPPDQGHU GLVUXSW WKH QRUPDO IORZ RI 623V DFWLRQV
623V DFWLRQV DQG QRUPDO FKHFNOLVWV DUH

6WULFW DGKHUHQFH WR WKH IROORZLQJ RSHUDWLQJ SROLFLHV LQLWLDWHG EDVHG RQ HYHQWV WULJJHUV LQ FDVH RI
SURYLGHV VDIHJXDUGV WR PLQLPL]H GLVUXSWLRQV RU WR GLVUXSWLRQ WKHVH HYHQWV PD\ JR XQQRWLFHG
OHVVHQ WKHLU HIIHFWV DQG WKH DEVHQFH RI WKH XVXDO WULJJHU PD\ EH
LQWHUSUHWHG LQFRUUHFWO\ DV DFWLRQ FRPSOHWH RU
x 6WHULOH &RFNSLW 5XOH FKHFNOLVW FRPSOHWH
x 2SHUDWLRQV *ROGHQ 5XOHV DQG 7KH DERYH OLQHV RI GHIHQVH PLQLPL]H WKH IOLJKW FUHZ
H[SRVXUH WR GLVUXSWLRQV FDXVHG E\ LQWHUUXSWLRQV DQG
x 6WDQGDUG &DOOV GLVWUDFWLRQV

3DJH
0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV 6XPPDU\ RI NH\ SRLQWV

%HFDXVH VRPH LQWHUUXSWLRQV DQG GLVWUDFWLRQV PD\ ,QWHUUXSWLRQV DQG GLVWUDFWLRQV XVXDOO\ UHVXOW IURP WKH
EH VXEWOH DQG LQVLGLRXV WKH ILUVW SULRULW\ LV WR IROORZLQJ IDFWRUV
UHFRJQL]H DQG LGHQWLI\ WKH GLVUXSWLRQ
x 3LORW FRQWUROOHU RU LQWUDFRFNSLW FRPPXQLFDWLRQV
LH LQFOXGLQJ IOLJKW FUHZ FDELQ FUHZ
7KH VHFRQG SULRULW\ LV WR UHHVWDEOLVK VLWXDWLRQDO
FRPPXQLFDWLRQV
DZDUHQHVV DV IROORZV
x ,GHQWLI\
x +HDGGRZQ ZRUN RU
:KDW ZDV , GRLQJ"

x 5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU DQ
XQDQWLFLSDWHG VLWXDWLRQ
x $VN
3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG
:KHUH ZDV , LQWHUUXSWHG"
EH GHYHORSHG WR PLQLPL]H LQWHUUXSWLRQV DQG
GLVWUDFWLRQV DQG WR OHVVHQ WKHLU HIIHFWV
x 'HFLGH$FW
:KDW GHFLVLRQ RU DFWLRQ VKDOO , WDNH WR JHW 6WULFW DGKHUHQFH WR WKH IROORZLQJ VWDQGDUGV LV WKH
³EDFN RQ WUDFN´ " PRVW HIIHFWLYH FRPSDQ\ SUHYHQWLRQ VWUDWHJ\ DQG

SHUVRQDO OLQHRIGHIHQVH
7KH IROORZLQJ GHFLVLRQPDNLQJSURFHVV VKRXOG EH x 623V

DSSOLHG
x 3ULRULWL]H
x 6WDQGDUG FDOOV
2SHUDWLRQV *ROGHQ 5XOHV SURYLGH FOHDU
JXLGHOLQHV IRU WDVN SULRULWL]DWLRQ
x 6WHULOH FRFNSLW UXOH DV DSSOLFDEOH DQG
)O\ 1DYLJDWH &RPPXQLFDWH DQG 0DQDJH LQ

x 5HFRYHU\ WHFKQLTXHV VXFK DV
WKDW RUGHU ,GHQWLI\ ± DVN ± GHFLGH ± DFW DQG
3ULRULWL]H ± SODQ ± YHULI\

x 3ODQ
6RPH DFWLRQV PD\ KDYH WR EH SRVWSRQHG XQWLO

WLPH DQG FRQGLWLRQV SHUPLW $VNLQJ IRU PRUH WLPH $VVRFLDWHG %ULHILQJ 1RWHV
HJ IURP WKH $7& RU IURP WKH RWKHU
FUHZPHPEHU ZLOO SUHYHQW EHLQJ UXVKHG LQ WKH 7KH IROORZLQJ %ULHILQJ 1RWHV SURYLGH H[SDQGHG
DFFRPSOLVKPHQW RI FRPSHWLQJ DFWLRQV LQIRUPDWLRQ WR VXSSOHPHQW WKLV GLVFXVVLRQ
,Q RWKHU ZRUGV WDNH WLPH WR PDNH WLPH x 2SHUDWLRQV *ROGHQ 5XOHV
x 9HULI\ x ² 6WDQGDUG &DOOV

8VLQJ 623V WHFKQLTXHV LH FRQFHSW RI QH[W
WDUJHW DFWLRQ EORFNV HYHQW WULJJHUV DQG QRUPDO
FKHFNOLVWV HQVXUH WKDW WKH DFWLRQV WKDW KDG
x +XPDQ )DFWRUV LQ $SSURDFKDQG
EHHQ SRVWSRQHG KDYH EHHQ GXO\ DFFRPSOLVKHG
/DQGLQJ $FFLGHQWV
)LQDOO\ LI WKH GLVUXSWLRQ LQWHUUXSW WKH FRXUVH RI D
QRUPDO FKHFNOLVW RU DEQRUPDO FKHFNOLVW DQ H[SOLFLW
x &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ
KROG VKRXOG EH YHUEDOL]HG WR PDUN WKH LQWHUUXSWLRQ RI $FFLGHQWV
WKH FKHFNOLVW DQG DQ H[SOLFLW FRPPDQG VKRXOG EH
XVHG IRU UHVXPLQJ WKH FKHFNOLVW x (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

3DJH
x ,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV PDQXDO
'RF

'RF

x )$5 RU

&50 7UDLQLQJ
x )$5 ± 6WHULOH FRFNSLW UXOH
x -$5236 RU &50 7UDLQLQJ
x -$5236 G ± 6WHULOH FRFNSLW

3DJH
&KDSWHU
$OWLPHWHUDQG$OWLWXGH,VVXHV
$OWLPHWHU6HWWLQJ8VHRI5DGLR$OWLPHWHU
,QWURGXFWLRQ 41+ RU 4)( "
2SHUDWRUV ZLWK LQWHUQDWLRQDO URXWHV DUH H[SRVHG WR 7KH XVH RI 41+ IRU RSHUDWLRQV EHORZ WKH WUDQVLWLRQ
GLIIHUHQW VWDQGDUGV LQ WHUPV RI OHYHO DOWLWXGH HOLPLQDWHV WKH QHHG IRU FKDQJLQJ WKH
x $OWLWXGH PHDVXUHPHQW LH IHHW RU PHWHUV
DOWLPHWHUVHWWLQJ
x 'XULQJ WKH DSSURDFK DQG ODQGLQJ DQG
x $OWLWXGH UHIHUHQFH VHWWLQJXQLWV LH KHFWRSDVFDO
RU LQFKRIPHUFXU\ 41+ RU 4)( DQG x 'XULQJ WKH PLVVHG DSSURDFK DV UHTXLUHG
x (QYLURQPHQWDO FRQGLWLRQV LH DWPRVSKHULF
SUHVVXUH FKDQJHV DQGRU ORZ 2$7 RSHUDWLRQ :KHQ 4)( LV XVHG IRU WKH DSSURDFK WKH DOWLPHWHU
PXVW EH FKDQJH WR 41+ IRU WKH PLVVHGDSSURDFK
7KLV %ULHILQJ 1RWH SURYLGHV D UHYLHZ DQG GLVFXVVLRQ XQOHVV WKH PLVVHGDSSURDFK SURFHGXUH LV GHILQHG
RI WKH IROORZLQJ DVSHFWV KLJKOLJKWLQJ WKH OHVVRQV ZLWK UHIHUHQFH WR 4)(
OHDUQHG IURP DSSURDFKDQGODQGLQJ LQFLGHQWV DQG 6RPH RSHUDWRUV VHW WKH DOWLPHWHU WR 4)( LQ DUHDV RI
DFFLGHQWV RSHUDWLRQ ZKHUH WKH $7& DQG WKH PDMRULW\ RI RWKHU
x %DURPHWULFDOWLPHWHU UHIHUHQFH 41+ RU 4)( RSHUDWRUV XVH 41+ 7KLV UHTXLUHV DGHTXDWH 623V
x 8VH RI GLIIHUHQW XQLWV IRU DOWLWXGH PHDVXUHPHQW
IRU DOWLPHWHUVHWWLQJ DQG IRU FRQYHUVLRQ RI DVVLJQHG
LH IHHW YHUVXV PHWHUV DQG DOWLPHWHU VHWWLQJ DOWLWXGHV WR KHLJKWV
LH ,Q+J YHUVXV K3D
x 6HWWLQJ RI EDURDOWLPHWHU EXJ DQG UDGLRDOWLPHWHU $OWLPHWHUVHWWLQJ 8QLWV
'+
2SHUDWRUV ZLWK LQWHUQDWLRQDO URXWHV DUH H[SRVHG WR
x 5DGLRDOWLPHWHU FDOORXWV DQG WKH XVH RI GLIIHUHQW DOWLPHWHU VHWWLQJ XQLWV
x /RZ2$7 RSHUDWLRQ x +HFWRSDVFDOV K3D SUHYLRXVO\ UHIHUUHG WR DV
PLOLEDUV PE
6WDWLVWLFDO 'DWD
x ,QFKHVRIPHUFXU\ LQ +J
'HYLDWLRQ IURP WKH LQWHQGHG YHUWLFDO IOLJKW SURILOH :KHQ LQ+J LV XVHG IRU DOWLPHWHU VHWWLQJ XQXVXDO
FDXVHG E\ RPLVVLRQ RI DQ DFWLRQ RU E\ DQ LQFRUUHFW EDURPHWULF SUHVVXUHV VXFK DV
DFWLRQ LV IUHTXHQWO\ REVHUYHG GXULQJ OLQH FKHFNV DQG x ;; LQ+J LH DQ XQXVXDOO\ ORZ SUHVVXUH RU
DXGLWV
x ;; LQ+J LH DQ XQXVXDOO\ KLJK SUHVVXUH
7KH ODFN RI VLWXDWLRQDO DZDUHQHVV SDUWLFXODUO\ WKH
ODFN RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV LV D FDXVDO PD\ JR XQGHWHFWHG ZKHQ OLVWHQLQJ WR WKH $7,6 RU
IDFWRU LQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV $7& UHVXOWLQJ LQ D PRUH XVXDO ;; DOWLPHWHU
WKLV LQFOXGHV PRVW DFFLGHQWV LQYROYLQJ &),7 VHWWLQJ EHLQJ VHW
$OWLPHWHU 6HWWLQJ ² 8VH RI 5DGLR $OWLPHWHU

3DJH
$ LQ+J GLVFUHSDQF\ LQ WKH DOWLPHWHU VHWWLQJ ,Q )LJXUH DQ DFWXDO 41+ RI K3D ZDV
UHVXOWV LQ D IW HUURU LQ WKH LQWHQGHG DFWXDO PLVWDNHQO\ VHW RQ WKH DOWLPHWHU DV LQ+J
DOWLWXGH DV LOOXVWUDWHG E\ )LJXUH )LJXUH HTXLYDOHQW WR K3D UHVXOWLQJ LQ WKH DFWXDO
)LJXUH DQG )LJXUH DVVXPH D IW DLUILHOG DOWLWXGH KHLJKW EHLQJ IW ORZHU WKDQ LQGLFDWHG
HOHYDWLRQ DQG D IW LQGLFDWHG DOWLWXGH
,Q )LJXUH WKH DFWXDO 41+ LV DQ XVXDOO\ ORZ ;;

LQ+J EXW WKH DOWLPHWHU VHWWLQJ ZDV PLVWDNHQO\ VHW WR
D PRUH XVXDO ;; LQ+J UHVXOWLQJ LQ WKH DFWXDO $FWXDO KHLJKW
IW $)/
DOWLWXGH KHLJKW EHLQJ IW ORZHU WKDQ LQGLFDWHG
,QGLFDWHG DOWLWXGH $FWXDO DOWLWXGH

IW IW )LHOG HOHYDWLRQ
IW
41+ K3D 6HD OHYHO $OWLPHWHU HUURU

$FWXDO KHLJKW IW
IW $)/ $OWLPHWHU VHWWLQJ LQ+J K3D
,QGLFDWHG DOWLWXGH $FWXDO DOWLWXGH

IW IW )LHOG HOHYDWLRQ
IW
)LJXUH
41+ ;; LQ+J 6HD OHYHO $OWLPHWHU HUURU
IW
$OWLPHWHU VHWWLQJ ;;
6HWWLQJ WKH DOWLPHWHU UHIHUHQFH

)LJXUH
,Q RUGHU WR HOLPLQDWH RU OHVVHQ WKH ULVN DVVRFLDWHG
ZLWK WKH XVH RI GLIIHUHQW DOWLPHWHUVHWWLQJ XQLWV RU ZLWK
WKH XVH RI XQXVXDO ORZ RU KLJK DOWLPHWHUVHWWLQJ
,Q )LJXUH WKH DFWXDO 41+ LV DQ XVXDOO\ KLJK ;; YDOXHV WKH IROORZLQJ UXOHV VKRXOG EH XVHG E\
LQ+J EXW WKH DOWLPHWHU VHWWLQJ ZDV PLVWDNHQO\ VHW WR FRQWUROOHUV ZKHQ UHFRUGLQJ WKH $7,6 PHVVDJH RU
D PRUH XVXDO ;; LQ+J UHVXOWLQJ LQ WKH DFWXDO ZKHQ WUDQVPLWWLQJ WKH DOWLPHWHUVHWWLQJ DQG E\ SLORWV
DOWLWXGH KHLJKW EHLQJ IW KLJKHU WKDQ LQGLFDWHG ZKHQ UHDGLQJ EDFN WKH DOWLPHWHUVHWWLQJ
x $OO GLJLWV DV ZHOO DV WKH XQLW HJ LQFKHV RU

KHFWRSDVFDOV VKRXOG EH LQGLFDWHG
$ WUDQVPLVVLRQ VXFK DV ³DOWLPHWHU VHWWLQJ VL[
$FWXDO KHLJKW
VHYHQ´ FDQ EH LQWHUSUHWHG DV RU
,QGLFDWHG DOWLWXGH
$FWXDO DOWLWXGH
IW $)/ LQ+J RU DV K3D
IW
IW
)LHOG HOHYDWLRQ ,QGLFDWLQJ WKH DOWLPHWHUVHWWLQJ XQLW SUHYHQWV

$OWLPHWHU VHWWLQJ ;; IW
FRQIXVLRQ RU DOORZV GHWHFWLRQ DQG FRUUHFWLRQ RI D
41+ ;; LQ+J 6HD OHYHO $OWLPHWHU HUURU
SUHYLRXV HUURU
IW
x :KHQ XVLQJ LQFKHV RI PHUFXU\ LQ+J ³ORZ´

VKRXOG SUHFHGH DQ DOWLPHWHU VHWWLQJ RI ;;
)LJXUH
LQ+J DQG ³KLJK´ VKRXOG SUHFHGH DQ DOWLPHWHU
VHWWLQJ RI ;; LQ+J
&RQIXVLRQ EHWZHHQ DOWLPHWHU VHWWLQJ XQLWV LH K3D

7KH 86 )$$ DFFHSWV WKLV SUDFWLFH LI GHHPHG
YHUVXV LQ+J OHDGV WR VLPLODU HUURUV LQ WKH DFWXDO
GHVLUDEOH E\ UHJLRQDO RU ORFDO DLU WUDIILF VHUYLFHV
DOWLWXGH DQG DFWXDO KHLJKW DERYH DLUILHOG HOHYDWLRQ

3DJH
7KH LQFRUUHFW VHWWLQJ RI WKH DOWLPHWHU UHIHUHQFH RIWHQ 6HWWLQJ RI %DURPHWULFDOWLPHWHU %XJ DQG
LV WKH UHVXOW RI RQH RU PRUH RI WKH IROORZLQJ IDFWRUV 5DGLRDOWLPHWHU '+
x +LJK ZRUNORDG
7KH EDURPHWULFDOWLPHWHU EXJ DQG RI WKH UDGLR
DOWLPHWHU '+ VKRXOG EH VHW LQ OLQH ZLWK $LUEXV
x 'HYLDWLRQ IURP QRUPDO WDVN VKDULQJ
,QGXVWULH¶ 623¶V RU FRPSDQ\¶ 623V
x ,QWHUUXSWLRQV DQG GLVWUDFWLRQV DQG
x $EVHQFH RI HIIHFWLYH FURVVFKHFN DQG EDFNXS $SSURDFK %DUR %XJ 5$ '+

EHWZHHQ FUHZPHPEHUV
9LVXDO 0'$'$ RI IW
$GKHUHQFH WR WKH GHILQHG WDVN VKDULQJ IRU QRUPDO RU LQVWUXPHQW
DEQRUPDO HPHUJHQF\ FRQGLWLRQV DQG WKH XVH RI DSSURDFK 1RWH
QRUPDO FKHFNOLVWV DUH WKH PRVW HIIHFWLYH OLQHVRI RU
GHIHQVH DJDLQVW DOWLPHWHU VHWWLQJ HUURUV
IW DERYH
DLUILHOG
HOHYDWLRQ
8VH RI 0HWULF $OWLPHWHU
1RQ,/6 0'$ IW

8VLQJ PHWULF DOWLWXGHV LQ FHUWDLQ FRXQWULHV VXFK DV
WKH &RPPRQZHDOWK RI ,QGHSHQGHQW 6WDWHV >&,6@ DQG
7KH 3HRSOH¶V 5HSXEOLF RI &KLQD DOVR UHTXLUHV
1RWH
DGDSWHG SURFHGXUHV IRU VHWWLQJ WKH VHOHFWHG DOWLWXGH
RQ WKH )&8 DQG WKH XVH RI PHWULF DOWLPHWHUV ,/6 &$7 , '$ IW
RU FRQYHUVLRQ WDEOHV IRU UHDGLQJ WKH DOWLWXGH LQ

PHWHUV 1R 5$ 1RWH
,/6 &$7 , 5$ '$ 5$ '+

5HVHW RI $OWLPHWHU 6HWWLQJ LQ &OLPE RU
'HVFHQW ,/6 &$7 ,, 1RWH
7KH WUDQVLWLRQ DOWLWXGH IOLJKW OHYHO FDQ EH HLWKHU ,/6 &$7 ,,, '$ 5$ '+
x )L[HG IRU WKH ZKROH FRXQWU\ HJ )/ LQ WKH :LWK '+ 1RWH
8QLWHG 6WDWHV
,/6 &$7 ,,, 7'= DOWLWXGH $OHUW KHLJKW

x )L[HG IRU D JLYHQ DLUSRUW DV LQGLFDWHG LQ WKH
DSSURDFK FKDUW RU
:LWK QR '+
x 9DULDEOH GHSHQGLQJ RQ 41+ DV LQGLFDWHG LQ WKH

$7,6 PHVVDJH 7DEOH
7DEOH EDVHG RQ XVH RI 41+

'HSHQGLQJ RQ WKH DLUOLQH¶V IOLJKW FUHZ¶V XVXDO DUHD
RI RSHUDWLRQ FKDQJLQJ IURP IL[HG WUDQVLWLRQ DOWLWXGHV 1RWH
)/ WR YDULDEOH WUDQVLWLRQ DOWLWXGHV )/ PD\ UHVXOW LQ
7KH 5$ '+ PD\ EH VHW HJ DW IW RQO\ IRU
D SUHPDWXUH RU ODWH VHWWLQJ RI WKH DOWLPHWHU UHIHUHQFH
WHUUDLQ DZDUHQHVV SXUSRVHV 8VLQJ WKH 5$ '+
VKRXOG EH GLVFXVVHG LQ WKH DSSURDFK EULHILQJ
$Q DOWLWXGH FRQVWUDLQW H[SUHVVHG LQ WHUPV RI )/ LQ
FOLPE RU H[SUHVVHG LQ WHUPV RI DOWLWXGH LQ GHVFHQW )RU DOO DSSURDFKHV H[FHSW &$7 , ZLWK 5$ &$7 ,,
PD\ DGYDQFH RU GHOD\ WKH FKDQJH RI WKH DOWLPHWHU DQG &$7 ,,, ,/6 DSSURDFKHV WKH DSSURDFK
UHIHUHQFH DQG FDXVH FUHZ FRQIXVLRQ 0,1,080 FDOORXW LV EDVHG RQ WKH EDURPHWULF
DOWLPHWHU EXJ VHW DW WKH 0'$+ RU '$+

3DJH
1RWH :KHQHYHU WKH WHPSHUDWXUH GHYLDWHV VLJQLILFDQWO\
&$7 ,,, '$ RU WKH &$7 , '$ LQ UHDGLQHVV IRU D

IURP WKH VWDQGDUG WHPSHUDWXUH WKH LQGLFDWHG DOWLWXGH
SRVVLEOH UHYHUVLRQ WR &$7 , PLQLPDV

FRUUHVSRQGLQJO\ GHYLDWHV IURP WKH WUXH DOWLWXGH DV
IROORZV
x ([WUHPH KLJK WHPSHUDWXUH

5DGLRDOWLPHWHU &DOORXWV
WKH WUXH DOWLWXGH LV KLJKHU WKDQ WKH LQGLFDWHG
5DGLRDOWLPHWHU FDOORXWV FDQ EH HLWKHU DOWLWXGH
x $QQRXQFHG YHUEDOL]HG E\ WKH 31) RU WKH )OLJKW x ([WUHPH ORZ WHPSHUDWXUH

(QJLQHHU RU
WKH WUXH DOWLWXGH LV ORZHU WKDQ WKH LQGLFDWHG
x $XWRPDWLFDOO\ JHQHUDWHG E\ D V\QWKHVL]HG YRLFH DOWLWXGH WKXV FUHDWLQJ D ORZHU WKDQ DQWLFLSDWHG
WHUUDLQ VHSDUDWLRQ DQG D SRWHQWLDO REVWDFOH
&DOORXWV VKRXOG EH WDLORUHG WR WKH DLUOLQH¶ RSHUDWLQJ FOHDUDQFH KD]DUG
SROLF\ DQG WR WKH W\SH RI DSSURDFK
)RU H[DPSOH ZKHQ SHUIRUPLQJ DQ ,/6 DSSURDFK ZLWK

7R HQKDQFH WKH IOLJKW FUHZ¶V WHUUDLQ DZDUHQHVV D D SXEOLVKHG IW PLQLPXP JOLGHVORSH
FDOORXW ³ 5DGLR DOWLPHWHU DOLYH ³ VKRXOG EH
LQWHUFHSWLRQDOWLWXGH DQG D ± q & 2$7 WKH
DQQRXQFHG E\ WKH ILUVW FUHZPHPEHU REVHUYLQJ WKH
PLQLPXP JOLGHVORSH LQWHUFHSWLRQ DOWLWXGH VKRXOG EH
UDGLR DOWLPHWHU DFWLYDWLRQ DW IW KHLJKW $*/
LQFUHDVHG E\ IW
7KH UDGLR DOWLPHWHU UHDGLQJ VKRXOG WKHQ EH LQFOXGHG
LQ WKH LQVWUXPHQW VFDQQLQJ IRU WKH UHPDLQGHU RI WKH
7UXH DOWLWXGH
DSSURDFK *LYHQ DWPRVSKHULF SUHVVXUH
SUHVVXUH DOWLWXGH
5DGLR DOWLPHWHU UHDGLQJV EHORZ REVWDFOH FOHDUDQFH

OHYHOV OLVWHG EHORZ VKRXOG DOHUW WKH IOLJKW FUHZ
,QGLFDWHG
DOWLWXGH
x ,QLWLDO DSSURDFK IW $*/ IW
IW
x ,QWHUPHGLDWH DSSURDFK RU PLQLPXP UDGDU
IW IW
YHFWRULQJ DOWLWXGH IW $*/
IW
x )LQDO DSSURDFK QRQSUHFLVLRQ DSSURDFKHV ZLWK
GHILQHG )$) IW $*/
1RWH 7KH UDGLR DOWLPHWHU LQGLFDWHV WKH DLUFUDIW

FXUUHQW KHLJKW DERYH WKH JURXQG KHLJKW $*/ DQG +LJK 2$7 6WDQGDUG 2$7 /RZ 2$7
QRW WKH KHLJKW DERYH WKH DLUILHOG HOHYDWLRQ
8QOHVV WKH DLUSRUW IHDWXUHV KLJK FORVHLQ WHUUDLQ WKH

)LJXUH
UDGLRDOWLPHWHU UHDGLQJ VKRXOG UHDVRQDEO\ DJUHH ZLWK (IIHFW RI 2$7 RQ 7UXH $OWLWXGH
WKH KHLJKW DERYH DLUILHOG HOHYDWLRQ REWDLQHG E\ GLUHFW
UHDGLQJ RI WKH DOWLPHWHU LI XVLQJ 4)( RU E\
FRPSXWDWLRQ LI XVLQJ 41+ 7KH ,&$2 3$16236 9ROXPH , SURYLGHV DOWLWXGH
FRUUHFWLRQV WR EH DGGHG WR WKH SXEOLVKHG PLQLPXP
VDIH DOWLWXGHV KHLJKWV
/RZ 2$7 2SHUDWLRQ
7KH WHPSHUDWXUH FRUUHFWLRQ LH FRUUHFWLRQ WR EH
,Q D VWDQGDUG DWPRVSKHUH WKH LQGLFDWHG DOWLWXGH DGGHG WR WKH LQGLFDWHG DOWLWXGH GHSHQGV RQ WKH
UHIOHFWV WKH WUXH DOWLWXGH DERYH WKH PHDQ VHD OHYHO DHURGURPH VXUIDFH WHPSHUDWXUH DQG RQ WKH GHVLUHG
06/ DQG WKHUHIRUH SURYLGHV D UHOLDEOH LQGLFDWLRQ RI WUXH DOWLWXGH KHLJKW DERYH WKH HOHYDWLRQ RI WKH
WHUUDLQ FOHDUDQFH DOWLPHWHUVHWWLQJ VRXUFH

3DJH
)O\LQJ LQWR D ORZ WHPSHUDWXUH DUHD KDV WKH VDPH ,&$2 3$16236 GRHV QRW SURYLGH DOWLWXGH
HIIHFW DV IO\LQJ LQWR D ORZSUHVVXUH DUHD WKH DLUFUDIW FRUUHFWLRQV IRU H[WUHPH KLJK WHPSHUDWXUHV
LV ORZHU WKDQ WKH DOWLPHWHU LQGLFDWHV WKH WHPSHUDWXUH HIIHFW RQ WKH WUXH DOWLWXGH VKRXOG QRW
EH LJQRUHG ZKHQ SODQQLQJ IRU D FRQVWDQWDQJOH QRQ
7KHVH HIIHFWV DUH VXPPDUL]HG DQG LOOXVWUDWHG LQ SUHFLVLRQ DSSURDFK LH WR PDLQWDLQ WKH UHTXLUHG
7DEOH IHDWXULQJ D ZHOONQRZQ DYLDWLRQ JROGHQ UXOH IOLJKW SDWK DQJOH DQGRU YHUWLFDO VSHHG
)URP 7R 6XPPDU\ RI NH\ SRLQWV

$OWLPHWHUVHWWLQJ HUURUV UHVXOW LQ D ODFN RI YHUWLFDO
$WPRVSKHULF +LJK /RZ /RRN VLWXDWLRQDO DZDUHQHVV WKH IROORZLQJ NH\ SRLQWV
3UHVVXUH VKRXOG EH HPSKDVL]HG WR PLQLPL]H DOWLPHWHUVHWWLQJ
RXW HUURUV DQG WR RSWLPL]H WKH XVH RI WKH EDURPHWULF
EHORZ DOWLPHWHU EXJ DQG UDGLRDOWLPHWHU '+
2$7 :DUP &ROG

x $ZDUHQHVV RI DOWLPHWHU VHWWLQJ FKDQJHV GXH WR
SUHYDLOLQJ ZHDWKHU FRQGLWLRQV H[WUHPH FROG RU
7DEOH ZDUP IURQWV VWHHS IURQWDO VXUIDFHV VHPL

SHUPDQHQW RU VHDVRQDO ORZ SUHVVXUH DUHDV
7KH SLORW LV UHVSRQVLEOH IRU SHUIRUPLQJ WKLV x $ZDUHQHVV RI WKH DOWLPHWHU VHWWLQJ XQLW LQ XVH DW
FRUUHFWLRQ H[FHSW ZKHQ XQGHU UDGDU FRQWURO LQ D WKH GHVWLQDWLRQ DLUSRUW
UDGDU YHFWRULQJ DUHD LQ WKLV FDVH WKH FRQWUROOHU
QRUPDOO\ LV UHVSRQVLEOH IRU WHUUDLQ FOHDUDQFH
x $ZDUHQHVV RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ
LQFOXGLQJ DFFRXQWLQJ IRU WKH FROG WHPSHUDWXUH
XVLQJ WZR LQGHSHQGHQW VRXUFHV IRU FURVVFKHFN
FRUUHFWLRQ
HJ 0(7$5 DQG $7,6 PHVVDJHV
1HYHUWKHOHVV WKH RSHUDWRU DQGRU SLORW VKRXOG

x (IIHFWLYH 3)31) FURVVFKHFN DQG EDFNXS
FRQILUP WKLV UHVSRQVLELOLW\ ZLWK WKH DLU WUDIILF VHUYLFHV
RI WKH FRXQWU\ RI RSHUDWLRQ
x $GKHUHQFH WR 623V IRU
7KH WHPSHUDWXUH FRUUHFWLRQ RQ DOWLWXGH DIIHFWV WKH

UHVHW RI EDURPHWULFDOWLPHWHUV LQ FOLPE DQG
IROORZLQJ SXEOLVKHG DOWLWXGHV ZKLFK WKHUHIRUH VKRXOG
GHVFHQW IRU H[DPSOH
EH LQFUHDVHG XQGHU ORZ 2$7 RSHUDWLRQ
LQ FOLPE DW WKH WUDQVLWLRQ DOWLWXGH DQG

x 0($ 06$
LQ GHVFHQW ZKHQ FOHDUHG WR DQ DOWLWXGH
x 7UDQVLWLRQ URXWHV DOWLWXGH
x 3URFHGXUH WXUQ DOWLWXGH DV DSSOLFDEOH

XVH RI VWDQGE\DOWLPHWHU WR FURVVFKHFN PDLQ
DOWLPHWHUV
x )$) DOWLWXGH
DOWLWXGH FDOORXWV
x 6WHSGRZQ DOWLWXGHV DQG 0'$+ GXULQJ D QRQ

SUHFLVLRQ QRQ,/6 DSSURDFK
UDGLRDOWLPHWHU FDOORXWV DQG
x 20 FURVVLQJ DOWLWXGH GXULQJ DQ ,/6 DSSURDFK

VHWWLQJ RI EDURPHWULFDOWLPHWHU EXJ DQG UDGLR
DOWLPHWHU '+
DQG
x :D\SRLQW FURVVLQJ DOWLWXGHV GXULQJ D *36

DSSURDFK IORZQ ZLWK YHUWLFDO QDYLJDWLRQ

3DJH
$VVRFLDWHG %ULHILQJ 1RWHV x ,&$2 $QQH[ ± 3URFHGXUHV IRU $LU 1DYLJDWLRQ

6HUYLFHV ± 5XOHV RI WKH $LU DQG $LU 7UDIILF
7KH IROORZLQJ %ULHILQJ 1RWHV DOVR UHIHU WR DOWLPHWHU
6HUYLFHV 3$165$& 'RF
VHWWLQJ DQG DOWLWXGH LVVXHV
x ,&$2 $QQH[ ± 3URFHGXUHV IRU $LU QDYLJDWLRQ
x 2SHUDWLQJ 3KLORVRSK\ ² 623V 6HUYLFHV ± $LUFUDIW 2SHUDWLRQV 3$16236 'RF
9ROXPH , ± )OLJKW SURFHGXUHV 3DUW 9, ±
$OWLPHWHU 6HWWLQJ 3URFHGXUHV &KDSWHU 1HZ
x ,QWUD&RFNSLW &RPPXQLFDWLRQV ² WDEOH RI WHPSHUDWXUH FRUUHFWLRQV WR EH DGGHG WR
WKH LQGLFDWHG DOWLWXGH ZKHQ RSHUDWLQJ LQ ORZ 2$7
FRQGLWLRQV
'LVWUDFWLRQV
7KH QHZ 3DUW 9, ± &KDSWHU ZLOO EH HIIHFWLYH LQ
x $OWLWXGH 'HYLDWLRQV 1RY DQG ZLOO UHSODFH DQG VXSHUVHGH WKH
FXUUHQW &KDSWHU RI 3DUW ,,,
5HJXODWRU\ UHIHUHQFHV x 3UHSDUDWLRQ RI DQ 2SHUDWLRQV PDQXDO

'RF
x ,&$2 $QQH[ ± 0HWHRURORJLFDO 6HUYLFH IRU
,QWHUQDWLRQDO $LU QDYLJDWLRQ &KDSWHU x 0DQXDO RI UDGLRWHOHSKRQ\ 'RF
x ,&$2 $QQH[ ± 8QLWV RI 0HDVXUHPHQW WR EH x +XPDQ )DFWRUV 7UDLQLQJ 0DQXDO 'RF
XVHG LQ $LU DQG *URXQG 2SHUDWLRQV 7DEOH
x +XPDQ )DFWRUV 'LJHVW 1R ± +XPDQ )DFWRUV LQ
$LU 7UDIILF &RQWURO &LUFXODU
x ,&$2 $QQH[ ± 2SHUDWLRQV RI $LUFUDIW 3DUW , ±
,QWHUQDWLRQDO &RPPHUFLDO $LU WUDQVSRUW ± x )$$ 'UDIW $& ;; $OWLPHWHU (UURUV DW &ROG
$HURSODQH F DQG $SSHQGL[ 7HPSHUDWXUHV

3DJH
$OWLWXGH'HYLDWLRQV
,QWURGXFWLRQ )DFWRUV ,QYROYHG LQ $OWLWXGH 'HYLDWLRQV

$OWLWXGH GHYLDWLRQV PD\ UHVXOW LQ VXEVWDQWLDO ORVV RI $OWLWXGH GHYLDWLRQV XVXDOO\ UHVXOW IURP RQH RI WKH
YHUWLFDO VHSDUDWLRQ DQGRU KRUL]RQWDO VHSDUDWLRQ IROORZLQJ FDXVHV
ZKLFK FRXOG FDXVH D PLGDLU FROOLVLRQ
x 0LVXQGHUVWDQGLQJ WKH DVVLJQHG DOWLWXGH
7UDIILF DYRLGDQFH PDQHXYHUV LI UHTXLUHG XVXDOO\
UHVXOW LQ LQMXULHV WR SDVVHQJHUV DQG FUHZPHPEHUV x 8VH RI DQ LQFRUUHFW DOWLPHWHU VHWWLQJ
SDUWLFXODUO\ WR FDELQ FUHZPHPEHUV
x )DLOXUH WR OHYHORII DW WKH DVVLJQHG DOWLWXGH RU
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI
WKH IDFWRUV LQYROYHG LQ DOWLWXGH GHYLDWLRQV x )DLOXUH WR UHDFK RU PDLQWDLQ WKH DVVLJQHG
7KLV GRFXPHQW FDQ EH XVHG IRU VWDQGDORQH UHDGLQJ DOWLWXGH RU DOWLWXGH UHVWULFWLRQ DW WKH SRLQW RU
RU DV WKH EDVLV IRU WKH GHYHORSPHQW RI DQ DLUOLQH¶V WLPH DVVLJQHG E\ $7&
DOWLWXGH DZDUHQHVV SURJUDP
$OWLWXGH GHYLDWLRQV DOZD\V DUH WKH UHVXOW RI D
EUHDNGRZQ LQ HLWKHU
6WDWLVWLFDO 'DWD
x WKH SLORW V\VWHP LQWHUIDFH
$Q DQDO\VLV E\ WKH 86 )$$ DQG E\ 86 $LUZD\V DOWLPHWHU VHWWLQJ XVH RI DXWRSLORW PRQLWRULQJ
LQGLFDWHV WKDW RI LQVWUXPHQWV DQG GLVSOD\V RU
x $SSUR[LPDWHO\ RI DOWLWXGH GHYLDWLRQV DUH
WKH UHVXOW RI D EUHDNGRZQ LQ WKH SLORWFRQWUROOHU x WKH SLORW FRQWUROOHU LQWHUIDFH
FRPPXQLFDWLRQ ORRS DQG FRPPXQLFDWLRQ ORRS
x 1HDUO\ RI DOWLWXGH GHYLDWLRQ HYHQWV DIIHFW
WKH FULWLFDO SDLU FRQVWLWXWHG E\ )/ )/ $OWLWXGH GHYLDWLRQV RFFXU DV WKH UHVXOW RI RQH RU D
RU IW IW FRPELQDWLRQ RI WKH IROORZLQJ FRQGLWLRQV
x 7KH FRQWUROOHU DVVLJQV DQ LQFRUUHFW DOWLWXGH RU
'HILQLQJ DQ $OWLWXGH 'HYLDWLRQ UHDVVLJQV D )/ DIWHU WKH DLUFUDIW KDV EHHQ
FOHDUHG WR DQ DOWLWXGH
$Q DOWLWXGH GHYLDWLRQ LV GHILQHG E\ UHJXODWLRQV DV D
GHYLDWLRQ IURP WKH DVVLJQHG DOWLWXGH RU IOLJKW OHYHO
HTXDO WR RU JUHDWHU WKDQ IW
$OWLWXGH 'HYLDWLRQV
3DJH
x 3LORWFRQWUROOHU FRPPXQLFDWLRQ EUHDNGRZQ *HQHUDO

PDLQO\ UHDGEDFN KHDUEDFN HUURUV HJ
$Q DOWLWXGH DZDUHQHVV SURJUDP VKRXOG HQKDQFH WKH
&RQWUROOHU WUDQVPLWV DQ LQFRUUHFW DOWLWXGH PRQLWRULQJ UROH RI WKH 3) DQG 31) E\ VWUHVVLQJ WKH
WKH SLORW GRHV QRW UHDGEDFN DQG WKH FRQWUROOHU LPSRUWDQFH RI
GRHV QRW FKDOOHQJH WKH DEVHQFH RI UHDGEDFN
x 6WDWLQJ YHUEDOL]LQJ LQWHQWLRQV DQG DFWLRQV
ZKHQ WKH\ DUH GLIIHUHQW IURP H[SHFWDWLRQV HJ
3LORW XQGHUVWDQGV DQG UHDGEDFN DQ LQFRUUHFW
GHOD\HG FOLPE RU GHVFHQW PDQDJHPHQW RI
DOWLWXGH EXW FRQWUROOHU GRHV QRW KHDU EDFN DQG
DOWLWXGH RU VSHHG UHVWULFWLRQV DQG
GRHV QRW FRUUHFW WKH FUHZ UHDGEDFN RU
x %DFNLQJ XS HDFK RWKHU
3LORW DFFHSWV DQ DOWLWXGH FOHDUDQFH LQWHQGHG

IRU DQRWKHU DLUFUDIW FRQIXVLRQ RI FDOOVLJQV
&RPPXQLFDWLRQV
x 3LORW XQGHUVWDQGV DQG UHDGV EDFN WKH FRUUHFW

%UHDNGRZQ LQ WKH SLORWFRQWUROOHU FRPPXQLFDWLRQ
DOWLWXGH RU )/ EXW VHOHFW DQ LQFRUUHFW DOWLWXGH RU
ORRS LQFOXGHV
)/ HJ EHFDXVH RI
x 5HDGEDFN KHDUEDFN HUURUV WKLV ULVN LV JUHDWHU

FRQIXVLRQ RI QXPEHUV ZLWK DQ RWKHU HOHPHQW ZKHQ RQH FUHZPHPEHU GRHV QRW PRQLWRU UDGLR
RI WKH PHVVDJH HJ VSHHG KHDGLQJ RU IOLJKW FRPPXQLFDWLRQV EHFDXVH RI RWKHU GXWLHV VXFK
QXPEHU DV OLVWHQLQJ WR WKH $7,6 RU EHLQJ LQYROYHG LQ
FRPSDQ\ FRPPXQLFDWLRQV RU SDVVHQJHU
H[SHFWDWLRQ DQWLFLSDWLRQ RI DQRWKHU DOWLWXGH DGGUHVV DQQRXQFHPHQWV
RU )/
x %ORFNHG WUDQVPLVVLRQV RU
LQWHUUXSWLRQ GLVWUDFWLRQ RU x &RQIXVLRQ RI FDOO VLJQV
EUHDNGRZQ LQ FUHZ FURVVFKHFN DQG EDFNXS

7KH IROORZLQJ UHFRPPHQGDWLRQV GLVFXVVHG DQG
H[SDQGHG LQ %ULHILQJ 1RWH (IIHFWLYH 3LORW
x $XWRSLORW IDLOV WR FDSWXUH WKH VHOHFWHG DOWLWXGH
&RQWUROOHU &RPPXQLFDWLRQV FDQ HQKDQFH
x $EVHQFH RI UHVSRQVH WR WKH DOWLWXGH DOHUW DXUDO FRPPXQLFDWLRQV DQG UDLVH WKH OHYHO RI VLWXDWLRQDO
DQG YLVXDO ZDUQLQJV ZKHQ LQ KDQG IO\LQJ RU DZDUHQHVV RI SLORWV DQG FRQWUROOHU
x %H DZDUH WKDW UHDGEDFN KHDUEDFN HUURUV

x ,QFRUUHFW JRDURXQG SURFHGXUH DQG PDQHXYHU LQYROYH PD\ WKH SLORW DQG WKH FRQWUROOHU
7KH SLORW PD\ EH LQWHUUXSWHG RU GLVWUDFWHG
$OWLWXGH $ZDUHQHVV 3URJUDP ZKHQ OLVWHQLQJ WR D FOHDUDQFH FRQIXVH VLPLODU

FDOOVLJQV IRUJHW DQ HOHPHQW RI WKH LQVWUXFWLRQ
RU EH VXEMHFW WR WKH ELDV RI H[SHFWDWLRQ ZKHQ
7KH GHYHORSPHQW DQG LPSOHPHQWDWLRQ RI DOWLWXGH
XQGHUVWDQGLQJ RU ZKHQ UHDGLQJ EDFN WKH
DZDUHQHVV SURJUDPV E\ VHYHUDO DLUOLQHV KDYH
LQVWUXFWLRQ WKLV ELDV XVXDOO\ LV UHIHUUHG WR DV
UHGXFHG VLJQLILFDQWO\ WKH QXPEHU RI DOWLWXGH
ZLVKKHDULQJ
GHYLDWLRQV
7KH FRQWUROOHU PD\ DOVR FRQIXVH VLPLODU

7R DGGUHVV WKH PDLQ FDXVHV RI DOWLWXGH GHYLDWLRQV FDOOVLJQV EH GLVWUDFWHG E\ RWKHU UDGLR RU
DQ DOWLWXGH DZDUHQHVV SURJUDP VKRXOG LQFOXGH WKH ODQGOLQH WHOHSKRQH FRPPXQLFDWLRQV RU EH
IROORZLQJ DVSHFWV DIIHFWHG E\ EORFNHG WUDQVPLVVLRQV RU KLJK
ZRUNORDG
$OWLWXGH 'HYLDWLRQV
3DJH
x 8VH VWDQGDUG SKUDVHRORJ\ IRU FOHDU DQG x 0RQLWRU VXSHUYLVH WKH RSHUDWLRQ RI $3 IRU
XQDPELJXRXV SLORW FRQWUROOHU DQG LQWUDFRFNSLW FRUUHFW OHYHORII DW WKH FOHDUHG DOWLWXGH DQG IRU
FRPPXQLFDWLRQV FRUUHFW FRPSOLDQFH ZLWK DOWLWXGH RU WLPH
UHVWULFWLRQV FRQVWUDLQWV
6WDQGDUG SKUDVHRORJ\ LV WKH FRPPRQ EDVLV IRU
x 3ODQ WDVNV WKDW SUHYHQW DWWHQWLYH OLVWHQLQJ WR
SLORWV DQG FRQWUROOHUV WKLV FRPPRQ ODQJXDJH
UDGLR FRPPXQLFDWLRQV VXFK DV FRS\LQJ WKH
DOORZV DQ HDVLHU GHWHFWLRQ DQG FRUUHFWLRQ RI
$7,6 FRPSDQ\ FDOOV DQG SDVVHQJHUVDGGUHVV
HUURUV
DQQRXQFHPHQWV GXULQJ SHULRGV RI OHVV $7&
FRPPXQLFDWLRQ
x 8VH RI DQ DGDSWHG SKUDVHRORJ\ WR LQFUHDVH WKH
FRQWUROOHU VLWXDWLRQDO DZDUHQHVV HJ x :KHQ RQH FUHZPHPEHU FDQQRW PRQLWRU WKH
$7& IUHTXHQF\ EHFDXVH RI RWKHU GXWLHV RU
:KHQ OHDYLQJ DQ DOWLWXGH DQQRXQFH EHFDXVH OHDYLQJ WKH FRFNSLW WKH RWKHU
FUHZPHPEHU VKRXOG
/HDYLQJ >«@ IRU >«@ RU
$FNQRZOHGJH UHFHLYLQJ WKH UDGLR DQG
FRQWUROV DV DSSOLFDEOH
/HDYLQJ >«@ DQG FOLPELQJ GHVFHQGLQJ WR
>«@ &KHFN WKH UDGLR YROXPH WR HQVXUH DGHTXDWH

UHFHSWLRQ RI $7& FDOOV
7KH FDOO OHDYLQJ « VKRXOG EH SHUIRUPHG RQO\
ZKHQ D YHUWLFDO VSHHG RI IWPQ KDV EHHQ

*LYH DQ LQFUHDVHG DWWHQWLRQ WR OLVWHQLQJ
FRQILUPLQJ UHDGLQJ EDFN EHFDXVH RI WKH
HVWDEOLVKHG DQG WKH DOWLPHWHU SRVLWLYHO\ VKRZV
PRPHQWDU\ DEVHQFH RI EDFNXS DQG
WKH GHSDUWXUH IURP WKH SUHYLRXV DOWLWXGH RU
)/ %ULHI WKH RWKHU FUHZ PHPEHU ZKHQ KHVKH

UHWXUQV KLJKOLJKWLQJ DQ\ UHOHYDQW QHZ
7KLV UHFRPPHQGDWLRQ WDNHV D SDUWLFXODU LQIRUPDWLRQ DQG DQ\ FKDQJH LQ WKH $7&
LPSRUWDQFH ZKHQ GHVFHQGLQJ LQ D KROGLQJ FOHDUDQFH RU LQVWUXFWLRQV
SDWWHUQ
8VH RI WZR VHSDUDWH PHWKRGV IRU H[SUHVVLQJ $OWLWXGHVHWWLQJ SURFHGXUHV

FHUWDLQ DOWLWXGHV ± RQH RQH WKRXVDQG IHHW WKDW
LV HOHYHQ WKRXVDQG IHHW DQG 7KH IROORZLQJ WHFKQLTXHV VKRXOG EH FRQVLGHUHG IRU
HQKDQFLQJ VWDQGDUG RSHUDWLQJ SURFHGXUHV 623V
3UHFHGLQJ HDFK QXPEHU E\ WKH FRUUHVSRQGLQJ
x :KHQ UHFHLYLQJ DQ DOWLWXGH FOHDUDQFH VHW WKH
IOLJKW SDUDPHWHU LH )/ KHDGLQJ VSHHG
FOHDUHG DOWLWXGH YDOXH LPPHGLDWHO\ LQ WKH
HJ GHVFHQG WR )OLJKW /HYHO WZR IRXU ]HUR
VHOHFWHG DOWLWXGH ZLQGRZ HYHQ EHIRUH UHDGEDFN
LQVWHDG RI GHVFHQG WR WZR IRXU ]HUR
LI GHHPHG PRUH VXLWDEOH GXH WR ZRUNORDG
x ,I GRXEW H[LVWV DERXW D FOHDUDQFH UHTXHVW x (QVXUH WKDW WKH DOWLWXGH VHOHFWHG LV FURVV
FRQILUPDWLRQ IURP $7& GR QRW DWWHPSW WR JXHVV FKHFNHG E\ ERWK FUHZPHPEHUV HJ HDFK FUHZ
DQ LQVWUXFWLRQ RU FOHDUDQFH EDVHG RQ IOLJKW GHFN PHPEHU VKRXOG YHUEDOL]H ZKDW KH RU VKH KHDUG
GLVFXVVLRQ DQG WKHQ SRLQW WR WKH VHOHFWHG DOWLWXGH ZLQGRZ WR
FRQILUP WKDW WKH FRUUHFW YDOXH KDV EHHQ VHW
7DVN SULRULWL]DWLRQ DQG WDVN VKDULQJ
x (QVXUH WKDW WKH FOHDUHG DOWLWXGH LV DERYH WKH
VHFWRU PLQLPXP VDIH DOWLWXGH DQG
7KH IROORZLQJ JXLGHOLQHV DQG UHFRPPHQGDWLRQV
VKRXOG EH FRQVLGHUHG IRU RSWLPXP SULRULWL]DWLRQ RI x :KHQ XQGHU UDGDU YHFWRULQJ EH DZDUH RI WKH
WDVNV DQG WDVN VKDULQJ DSSOLFDEOH PLQLPXP YHFWRULQJ DOWLWXGH IRU WKH
VHFWRU RU SRVLWLYHO\ UHTXHVW FRQILUPDWLRQ RI DQ
x 5HGXFH QRQHVVHQWLDO WDVNV GXULQJ FOLPE DQG
DOWLWXGH FOHDUDQFH EHORZ WKH VHFWRU 06$
GHVFHQW LQ DGGLWLRQ WR WKH VWHULOH FRFNSLW UXOH
VRPH RSHUDWRUV FRQVLGHU WKH ODVW IW EHIRUH
UHDFKLQJ DQ\ DVVLJQHG DOWLWXGH DV D VWHULOH
FRFNSLW SHULRG
$OWLWXGH 'HYLDWLRQV
3DJH
&DOORXWV x )DLOLQJ WR TXHVWLRQ WKH XQXVXDO HJ ELDV RI

H[SHFWDWLRQ RU URXWLQH RQ D IDPLOLDU 6,' RU
8VH VWDQGDUG FDOOV WR LQFUHDVH WKH 3) 31) 67$5 DQGRU
VLWXDWLRQDO DZDUHQHVV WR HQVXUH DQ HIIHFWLYH
EDFNXS DQG FKDOOHQJH DQG GHWHFW D SUHYLRXV HUURU

x ,QWHUSUHWLQJ VXEFRQVFLRXVO\ D UHTXHVW WR VORZ
GRZQ WR NW DV D FOHDUDQFH WR GHVFHQG WR
RQ WKH DVVLJQHG FOHDUHG DOWLWXGH RU )/
)/
x 0RGHV FKDQJHV RQ )0$ DQG FKDQJHV RI WDUJHWV

RQ 3)'1' 7UDQVLWLRQ $OWLWXGH /HYHO
x /HDYLQJ >@ IRU >«@ ZKHQ D IWPQ YHUWLFDO $V LQGLFDWHG LQ %ULHILQJ 1RWH $OWLPHWHU
VSHHG KDV EHHQ HVWDEOLVKHG
LQGLFDWHV GHSDUWXUH IURP WKH SUHYLRXV DOWLWXGH
DQG DOWLPHWHU
6HWWLQJ ² 8VH RI UDGLR $OWLPHWHU WKH WUDQVLWLRQ
DOWLWXGH IOLJKW OHYHO FDQ EH HLWKHU
DQG
x )L[HG IRU WKH ZKROH FRXQWU\ HJ )/ LQ WKH
x 2QH WR JR 8QLWHG 6WDWHV
2QH WKRXVDQG WR JR ³ RU x )L[HG IRU D JLYHQ DLUSRUW DV LQGLFDWHG LQ WKH

DSSURDFK FKDUW RU
>«@ IRU >«@
x 9DULDEOH DV D IXQFWLRQ RI 41+ DV LQGLFDWHG LQ
ZKHQ ZLWKLQ IW IURP WKH FOHDUHG DOWLWXGH RU
WKH $7,6 PHVVDJH
)/
'HSHQGLQJ RQ WKH DLUOLQH¶V IOLJKW FUHZ¶V XVXDO DUHD

:KHQ ZLWKLQ IW IURP WKH FOHDUHG DOWLWXGH )/ RU
RI RSHUDWLRQ FKDQJLQJ IURP IL[HG WUDQVLWLRQ
IURP DQ DOWLWXGH UHVWULFWLRQ FRQVWUDLQW
DOWLWXGHV)/ WR YDULDEOH WUDQVLWLRQ DOWLWXGHV)/ PD\
UHVXOW LQ D SUHPDWXUH RU ODWH FKDQJH RI WKH DOWLPHWHU
x 3) VKRXOG FRQFHQWUDWH RQ LQVWUXPHQWV VFDQQLQJ
VHWWLQJ
RQH KHDG LQ DQG
$Q DOWLWXGH FRQVWUDLQW H[SUHVVHG LQ WHUPV RI )/ LQ

x 31) VKRXOG ZDWFK RXWVLGH IRU WUDIILF LI LQ 90&
FOLPE RU H[SUHVVHG LQ WHUPV RI DOWLWXGH LQ GHVFHQW
RQH KHDG RXW
PD\ DGYDQFH RU GHOD\ WKH FKDQJH RI DOWLPHWHU
VHWWLQJ DQG FDXVH FUHZ FRQIXVLRQ
)OLJKW /HYHO RU $OWLWXGH &RQIXVLRQ ,Q FRXQWULHV RSHUDWLQJ ZLWK UHIHUHQFH WR WKH 4)(
ZKHQ EHORZ WKH WUDQVLWLRQ DOWLWXGH RU )/ WKH
&RQIXVLRQ EHWZHHQ )/ DQG )/ RU EHWZHHQ UHDGEDFN VKRXOG LQGLFDWH WKH DOWLPHWHU UHIHUHQFH
IW IW LV XVXDOO\ WKH UHVXOW RI WKH LH 4)(
FRPELQDWLRQ RI WZR RU PRUH RI WKH IROORZLQJ IDFWRUV
x 5HDGEDFN KHDUEDFN HUURU EHFDXVH RI VLPLODU $OWLWXGH 'HYLDWLRQV LQ +ROGLQJ 3DWWHUQV

VRXQGLQJ SKUDVHV
,Q KROGLQJ SDWWHUQV FRQWUROOHUV UHO\ RQ SLORWV

x $EVHQFH RI VWDQGDUG SKUDVHRORJ\ PDLQWDLQHG WKH DVVLJQHG DOWLWXGH RU WR GHVFHQG WR
WKH QHZ FOHDUHG DOWLWXGH
,&$2 )/ RQH ]HUR ]HUR )/ RQH RQH ]HUR
8. 1$76 )/ RQH KXQGUHG )/ RQH RQH 7KH RYHUOD\ RI DLUFUDIW WDJV RQ WKH FRQWUROOHU¶V UDGDU
]HUR GLVSOD\ GRHV QRW DOORZ WKH LPPHGLDWH GHWHFWLRQ RI DQ
LPSHQGLQJ WUDIILF FRQIOLFW
x 0LQGVHW OHDQLQJ WR IRFXV RQO\ RQ ³RQH ]HUR´ DQG

WKXV WR PRUH HDVLO\ XQGHUVWDQG &RQWUROOHUV WKHUHIRUH DVVXPH WKDW D FRUUHFWO\
³ IHHW´ UHDGEDFN FOHDUDQFH ZLOO EH FRUUHFWO\ FRPSOLHG ZLWK
$OWLWXGH 'HYLDWLRQV
3DJH
6HFRQGDU\ VXUYHLOODQFH UDGDU¶V 665 SURYLGH 7KH 7&$6 $&$6 LV DQ HIIHFWLYH VDIHJXDUG WR
FRQIOLFW DOHUWV EXW QR UHVROXWLRQ DGYLVRU\ DFFXUDWH PLQLPL]H WKH FRQVHTXHQFHV RI DOWLWXGH GHYLDWLRQV
DQG FOHDU SLORW FRQWUROOHU FRPPXQLFDWLRQV DUH
HVVHQWLDO ZKHQ GHVFHQGLQJ LQ D KROGLQJ SDWWHUQ $OWLWXGH GHYLDWLRQV FDQ EH SUHYHQWHG E\ VWULFW
DGKHUHQFH WR DGHTXDWH 623V WKLV LQFOXGHV
7ZR VHSDUDWH KROGLQJ SDWWHUQV PD\ EH FRQWUROOHG E\
WKH VDPH FRQWUROOHU RQ WKH VDPH IUHTXHQF\
x 6HWWLQJ WKH DOWLPHWHUUHIHUHQFH RQ EDURPHWULF
DOWLPHWHUV DQG
7KH IROORZLQJ FRPPXQLFDWLRQ UXOHV DUH WKHUHIRUH x 6HOHFWLQJ WKH FOHDUHG DOWLWXGH RU )/ RQ WKH )&8
LPSRUWDQW ZKHQ LQ D KROGLQJ SDWWHUQ
x 'R QRW WDNH D FRPPXQLFDWLRQ LQWHQGHG IRU DQ

RWKHU DLUFUDIW E\ FRQIXVLRQ RI VLPLODU FDOOVLJQV $VVRFLDWHG %ULHILQJ 1RWHV
x 3UHYHQW PLQLPL]H WKH ULVN RI EORFNHG 7KH IROORZLQJ %ULHILQJ 1RWHV UHIHU WR DOWLPHWHU
WUDQVPLVVLRQ LQ FDVH RI VLPXOWDQHRXV UHDGEDFN VHWWLQJ DQG DOWLWXGH LVVXHV
E\ WZR DLUFUDIW ZLWK VLPLODU FDOOVLJQV RU
VLPXOWDQHRXV WUDQVPLVVLRQV E\ WKH SLORW DQG WKH
FRQWUROOHU DQG
x $QQRXQFH OHDYLQJ >)/ RU DOWLWXGH@ RQO\ ZKHQ WKH x 2SHUDWLRQV *ROGHQ 5XOHV
YHUWLFDO VSHHG LQGLFDWRU DQG WKH DOWLPHWHU UHIOHFW
WKH GHSDUWXUH IURP WKH SUHYLRXV DOWLWXGH
x 6WDQGDUG &DOOV
x
6XPPDU\ RI .H\ 3RLQWV (IIHFWLYH 3LORW &RQWUROOHU
&RPPXQLFDWLRQV
$Q DOWLWXGH DZDUHQHVV SURJUDP VKRXOG EH
HPSKDVL]HG GXULQJ WUDQVLWLRQ DQG UHFXUUHQW WUDLQLQJ x ,QWUDFUHZ &RPPXQLFDWLRQV ²
DQG GXULQJ OLQH FKHFNV 0DQDJLQJ ,QWHUUXSWLRQV DQG
'LVWUDFWLRQV
%ODPHIUHH UHSRUWLQJ RI DOWLWXGH GHYLDWLRQ HYHQWV
VKRXOG EH HQFRXUDJH WR EURDGHQ WKH XQGHUVWDQGLQJ
RI FDXVDO DQG FLUFXPVWDQWLDO IDFWRUV UHVXOWLQJ LQ
x $OWLPHWHU 6HWWLQJ ² 8VH RI UDGLR
DOWLWXGH GHYLDWLRQV $OWLPHWHU
7KH IROORZLQJ VDIHW\ NH\ SRLQWV VKRXOG EH SURPRWHG
x $GKHUH WR WKH SLORW FRQWUROOHU UHDGEDFN

KHDUEDFN SURFHVV FRPPXQLFDWLRQ FLUFOH
x &URVVFKHFN DQG EDFNXS HDFK RWKHU WR HQVXUH

WKDW WKH DOWLWXGH VHOHFWHG LV WKH FOHDUHG DOWLWXGH
UHFHLYHG
x &URVVFKHFN WKDW WKH FOHDUHG DOWLWXGH LV DERYH

WKH VHFWRU PLQLPXP VDIH DOWLWXGH XQOHVV FUHZ LV
DZDUH RI WKH DSSOLFDEOH PLQLPXP YHFWRULQJ
DOWLWXGH IRU WKH VHFWRU
x 0RQLWRU LQVWUXPHQWV DQG DXWRPDWLRQ ZKHQ

UHDFKLQJ WKH FOHDUHG DOWLWXGH RU )/ DQG
x ,Q 90& DSSO\ WKH WHFKQLTXH RQH KHDG LQVLGH

RQH KHDG RXW ZKHQ UHDFKLQJ WKH FOHDUHG DOWLWXGH
RU )/
$OWLWXGH 'HYLDWLRQV
3DJH
x ,&$2 $QQH[ 3DUWV , ,, DQG ,,, 6HFWLRQV ,, DQG
,,, DPHQGHG LQ IRU GLVFRXUDJLQJ WKH XVH

RI WKUHHSRLQWHU DQG GUXPSRLQWHU DOWLPHWHUV
x ,&$2 $QQH[ 2SHUDWLRQ RI $LUFUDIW 3DUW , ±

$HURSODQHV F DQG $SSHQGL[


3$165$& 'RF

± $LUFUDIW 2SHUDWLRQV 3$16236 'RF
9ROXPH , )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW
1R DSSOLFDEOH 1RYHPEHU
x )$5 IRU PLQLPXP VDIH DOWLWXGH
x )$5 IRU DOWLPHWHU VHWWLQJ
x )$5 IRU FODULILFDWLRQ RI $7& FRP

PXQLFDWLRQV
x )$5 DQG )$5 IRU 7&$6

LQVWDOODWLRQ
x )$$ 'UDIW $& ;; ± $OWLPHWHU (UURUV DW &ROG

7HPSHUDWXUHV
x 8. &$$ &$3 IRU UHTXLUHG FULWHULD LQ

DQQRXQFLQJ OHDYLQJ DQ DOWLWXGH RU )/
$OWLWXGH 'HYLDWLRQV
3DJH
&KDSWHU
'HVFHQWDQG$SSURDFK0DQDJHPHQW
'HVFHQWDQG$SSURDFK3URILOH0DQDJHPHQW
,QWURGXFWLRQ 'HVFHQW 3UHSDUDWLRQ
,QDGHTXDWH PDQDJHPHQW RI GHVFHQWDQGDSSURDFK x ,I D VWDQGDUG WHUPLQDO DUULYDO URXWH 67$5 LV

SURILOH DQGRU LQFRUUHFW PDQDJHPHQW RI DLUFUDIW LQFOXGHG LQ WKH )06 IOLJKW SODQ EXW LV QRW
HQHUJ\ OHYHO GXULQJ DSSURDFK PD\ LQ H[SHFWHG WR EH IORZQ EHFDXVH RI DQWLFLSDWHG
UDGDU YHFWRUV WKH 67$5 VKRXOG EH FKHFNHG
x /RVV RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV DQGRU LH WKH WUDFNGLVWDQFH DOWLWXGH UHVWULFWLRQV
DQGRU VSHHG UHVWULFWLRQV DJDLQVW WKH
x 5XVKHG DQG XQVWDELOL]HG DSSURDFKHV DQWLFLSDWHG URXWLQJ WR DGMXVW WKH WRSRIGHVFHQW
SRLQW DFFRUGLQJO\ DQG
(LWKHU VLWXDWLRQ LQFUHDVHV WKH ULVN RI DSSURDFKDQG :LQG IRUHFDVW VKRXOG EH HQWHUHG DV DYDLODEOH
ODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH LQYROYLQJ &),7 x
RQ WKH DSSURSULDWH )06 SDJH DW ZD\SRLQWV
FORVH WR WKH WRSRIGHVFHQW SRLQW DQG DORQJ WKH
GHVFHQW SURILOH
6WDWLVWLFDO 'DWD
$SSUR[LPDWHO\ RI UXVKHG DQG XQVWDEOH
DSSURDFKHV LQYROYH DQ LQDGHTXDWH PDQDJHPHQW RI 'HVFHQW DQG $SSURDFK %ULHILQJ
WKH GHVFHQWDQGDSSURDFK SURILOH DQGRU DQ x ,I D PLVVHGDSSURDFK LV LQFOXGHG LQ WKH )06

LQFRUUHFW PDQDJHPHQW RI HQHUJ\ OHYHO WKLV LQFOXGHV IOLJKW SODQ WKH PLVVHG DSSURDFK VKRXOG EH
UHYLHZHG DJDLQVW WKH DSSOLFDEOH DSSURDFK FKDUW
x %HLQJ KLJKHU RU ORZHU WKDQ WKH GHVLUHG YHUWLFDO
IOLJKW SDWK DQGRU 'HVFHQW ,QLWLDWLRQ
x %HLQJ IDVWHU RU VORZHU WKDQ WKH GHVLUHG VSHHG x ,I GHVFHQW LQLWLDWLRQ LV GHOD\HG E\ $7& UHGXFH
VSHHG DV DSSURSULDWH WR PLQLPL]H WKH LPSDFW RQ
WKH GHVFHQW SURILOH
%HVW 3UDFWLFHV DQG *XLGHOLQHV
7R SUHYHQW GHOD\ LQ LQLWLDWLQJ WKH GHVFHQW DQG WR
1DYLJDWLRQ $FFXUDF\ &KHFN
HQVXUH DQ RSWLPXP PDQDJHPHQW RI GHVFHQWDQG x ,I )06 QDYLJDWLRQ DFFXUDF\ GRHV QRW PHHW WKH
DSSURDFK SURILOH GHVFHQW SUHSDUDWLRQ DQG DSSOLFDEOH FULWHULD IRU WHUPLQDO DUHD QDYLJDWLRQ RU
DSSURDFKJRDURXQG EULHILQJV VKRXOG EH FRPSOHWHG DSSURDFK QR GHVFHQW VKRXOG EH PDGH EHORZ
W\SLFDOO\ PLQXWHV EHIRUH WKH WRSRIGHVFHQW RU WKH 0($ RU EHORZ WKH VHFWRU 06$ ZLWKRXW SULRU
ZKHQ ZLWKLQ 9+) FRPPXQLFDWLRQ UDQJH FRQILUPDWLRQ RI WKH DLUFUDIW SRVLWLRQ XVLQJ
QDYDLGV UDZGDWD

3DJH
&RQFHSW RI QH[W WDUJHW DQG GHFLVLRQ JDWHV $ FDOORXW VKRXOG EH SHUIRUPHG E\ WKH 31) LI D IOLJKW
SDUDPHWHU H[FHHGV WKH FULWHULD IRU RQH RI WKH
7KURXJKRXW WKH HQWLUH IOLJKW D QH[W WDUJHW VKRXOG EH HOHPHQWV RI D VWDELOL]HG DSSURDFK DV GHVFULEHG LQ
GHILQHG LQ RUGHU WR VWD\ DKHDG RI WKH DLUFUDIW DW DOO %ULHILQJ 1RWH )O\LQJ 6WDELOL]HG $SSURDFKHV
WLPHV
7KH QH[W WDUJHW VKRXOG EH DQ\ UHTXLUHG FRPELQDWLRQ 'HVFHQW 3URILOH 0RQLWRULQJ
RI RQH RU PRUH RI WKH IROORZLQJ HOHPHQWV
'HVFHQW SURILOH VKRXOG EH PRQLWRUHG XVLQJ DOO
x $ SRVLWLRQ DYDLODEOH LQVWUXPHQW DQG FKDUW UHIHUHQFHV
x $Q DOWLWXGH x )06 YHUWLFDOGHYLDWLRQ LQGLFDWLRQ DV DSSOLFDEOH
x $ FRQILJXUDWLRQ
x 1DYDLGV DQG LQVWUXPHQWV UDZGDWD DQG
x &KDUWHG GHVFHQWDQGDSSURDFK SURILOH

x $ VSHHG
x $ YHUWLFDO VSHHG DV DSSOLFDEOH DQG :LQG FRQGLWLRQV DQG ZLQG FKDQJHV VKRXOG EH
PRQLWRUHG FORVHO\ WR DQWLFLSDWH DQ\ UHGXFWLRQ LQ
x $ SRZHU VHWWLQJ KHDG ZLQG FRPSRQHQW RU LQFUHDVH LQ WDLO ZLQG
FRPSRQHQW DQG WR DGMXVW WKH IOLJKW SDWK SURILOH LQ D
WLPHO\ PDQQHU
,I LW LV DQWLFLSDWHG WKDW RQH RU PRUH HOHPHQWV RI WKH
QH[W WDUJHW ZLOO QRW EH PHW WKH UHTXLUHG FRUUHFWLYH
7KH GHVFHQW SURILOH PD\ EH PRQLWRUHG DQG DGMXVWHG
DFWLRQV VKRXOG EH WDNHQ ZLWKRXW GHOD\
EDVHG RQ D W\SLFDO IW SHU QP GHVFHQW
JUDGLHQW FRUUHFWHG IRU WKH SUHYDLOLQJ KHDG ZLQG
'XULQJ WKH DSSURDFK DQG ODQGLQJ WKH VXFFHVVLYH
FRPSRQHQW RU WDLO ZLQG FRPSRQHQW ZKLOH FRPSO\LQJ
QH[W WDUJHWV VKRXOG FRQVWLWXWH JDWHV WKDW PXVW EH
ZLWK WKH UHTXLUHG DOWLWXGH DQGRU VSHHG UHVWULFWLRQV
PHW IRU WKH DSSURDFK WR EH FRQWLQXHG
LH HQVXULQJ DGHTXDWH GHFHOHUDWLRQ PDQDJHPHQW
7KH ILQDO DSSURDFK IL[ )$) WKH RXWHU PDUNHU 20

7KH IOLJKW SDWK YHFWRU DV DYDLODEOH FDQ EH XVHG WR
RU DQ HTXLYDOHQW IL[ DV DSSOLFDEOH VKRXOG FRQVWLWXWH
PRQLWRU WKH GHVFHQW SURILOH E\ FKHFNLQJ WKDW WKH
DQ DVVHVVPHQW JDWH WR FRQILUP WKH UHDGLQHVV WR
UHPDLQLQJ WUDFNGLVWDQFH WR WRXFKGRZQ LQ QP LV
SURFHHG IXUWKHU WKLV DVVHVVPHQW VKRXOG LQFOXGH WKH
DSSUR[LPDWHO\ HTXDO WR WKH )/ GLYLGHG E\ WKH IOLJKW
IROORZLQJ
SDWKDQJOH )3$ LQ GHJUHHV
x 9LVLELOLW\ RU 595 DQG FHLOLQJ DV DSSURSULDWH
'LVWDQFHWRJR QP )/ )3$ GHJUHHV
EHWWHU WKDQ RU HTXDO WR DSSOLFDEOH
PLQLPXPV
1RWH
x $LUFUDIW UHDGLQHVV ,Q WKH DERYH UXOH WKH )/ VKRXOG EH XQGHUVWRRG DV
SRVLWLRQ DOWLWXGH FRQILJXUDWLRQ DQG HQHUJ\ WKH )/ GLIIHUHQFH '

)/ EHWZHHQ WKH FXUUHQW
DQG DLUFUDIW )/ DQG WKH DLUILHOG )/
x &UHZ UHDGLQHVV %HORZ IW IO\LQJ DW NW ,$6 WKH IROORZLQJ
JXLGHOLQHV PD\ EH XVHG WR FRQILUP WKH GHVFHQW
EULHILQJ FRPSOHWHG DQG DJUHHPHQW RQ
SURILOH DQG HQVXUH D VPRRWK WUDQVLWLRQ EHWZHHQ WKH
DSSURDFK FRQGLWLRQV
YDULRXV SKDVHV RI WKH DSSURDFK
7KH VWDELOL]DWLRQ KHLJKW VKRXOG FRQVWLWXWH D GHFLVLRQ x IW DERYH DLUSRUW HOHYDWLRQ DW QP IURP
JDWH LI WKH UHTXLUHG FRQILJXUDWLRQ DQG VSHHG DUH QRW WRXFKGRZQ DQG
REWDLQHG RU LI WKH IOLJKW SDWK LV QRW VWDELOL]HG ZKHQ
UHDFKLQJ WKH VWDELOL]DWLRQ KHLJKW DQ LPPHGLDWH JR x IW DERYH DLUSRUW HOHYDWLRQ DW QP IURP
DURXQG VKRXOG EH LQLWLDWHG WRXFKGRZQ WR DFFRXQW IRU GHFHOHUDWLRQ DQG
VODWVIODSV H[WHQVLRQ

3DJH
'HVFHQW 3URILOH $GMXVWPHQW5HFRYHU\ x )DLOXUH WR DFFRXQW IRU GLIIHUHQFHV EHWZHHQ

H[SHFWHG URXWLQJ DQG DFWXDO URXWLQJ LH 67$5
,I IOLJKW SDWK LV VLJQLILFDQWO\ DERYH WKH GHVLUHG YHUVXV UDGDU YHFWRUV
GHVFHQW SURILOH HJ EHFDXVH RI DQ $7& FRQVWUDLQW
RU D KLJKHUWKDQDQWLFLSDWHG WDLO ZLQG WR UHFRYHU WKH x 'LVWUDFWLRQ OHDGLQJ WR RU UHVXOWLQJ IURP D
GHVLUHG IOLJKW SDWK WZRKHDGVGRZQ VLWXDWLRQ
x 5HYHUW IURP )06 YHUWLFDO QDYLJDWLRQ WR D x )DLOXUH WR UHVROYH DPELJXLWLHV GRXEWV RU

VHOHFWHG YHUWLFDO PRGH ZLWK DQ DSSURSULDWH GLVDJUHHPHQWV
VSHHG WDUJHW
x )DLOXUH WR HIIHFWLYHO\ PRQLWRU WKH GHVFHQW

x 0DLQWDLQ D KLJK DLUVSHHG DV ORQJ DV SUDFWLFDO SURJUHVV XVLQJ DOO DYDLODEOH LQVWUXPHQW
UHIHUHQFHV HJ IDLOXUH WR PRQLWRU ZLQG
x ([WHQG VSHHG EUDNHV DV DOORZHG E\ 623V FRQGLWLRQV DQGRU ZLQG FKDQJHV DQGRU
GHSHQGLQJ RQ DLUVSHHG DQG FRQILJXUDWLRQ
NHHSLQJ RQH KDQG RQ WKH VSHHG EUDNHV KDQGOH x 8VH RI LQDSSURSULDWH WHFKQLTXH WR UHFRYHU WKH
XQWLO VSHHG EUDNHV DUH UHWUDFWHG RU GHVFHQW SURILOH
x ([WHQG ODQGLQJ JHDU LI WKH XVH RI VSHHG EUDNHV

LV QRW VXIILFLHQW RU 6XPPDU\ RI .H\ 3RLQWV
x $V D ODVW UHVRUW SHUIRUP D GHJUHH WXUQ DV 7KH IROORZLQJ NH\ SRLQWV VKRXOG EH HPSKDVL]HG
SUDFWLFDO DQG FOHDUHG E\ $7& GXULQJ WUDQVLWLRQ WUDLQLQJ DQG OLQH WUDLQLQJ DV ZHOO DV
GXULQJ OLQH FKHFNV DQG OLQH DXGLWV
0DLQWDLQ FORVH UHIHUHQFH WR LQVWUXPHQWV
WKURXJKRXW WKH WXUQ WR PRQLWRU DQG FRQWURO WKH
UDWH RI GHVFHQW EDQN DQJOH DQG SRVLWLRQ
x 7LPHOLQHVV RI GHVFHQW DQG DSSURDFK
SUHSDUDWLRQ
WR SUHYHQW
ORVV RI FRQWURO x 6WULFW DGKHUHQFH WR 623V IRU )06 VHWXS
&),7 RU
x &URVVFKHFN RI DOO GDWD HQWULHV E\ ERWK
RYHUVKRRW RI WKH ORFDOL]HU DQGRU RI WKH
FUHZPHPEHUV
H[WHQGHG UXQZD\ FHQWHUOLQH
x 8VH RI 3)' 1' DQG )06 &'8 WR VXSSRUW DQG

,I WKH GHVLUHG GHVFHQW IOLJKW SDWK FDQQRW EH
LOOXVWUDWH WKH GHVFHQW DSSURDFK DQG JRDURXQG
UHFRYHUHG QRWLI\ $7& IRU WLPHO\ FRRUGLQDWLRQ
EULHILQJV
5HIHU WR %ULHILQJ 1RWH (QHUJ\ 0DQDJHPHQW

x &RQILUPDWLRQ RI )06 QDYLJDWLRQ DFFXUDF\
GXULQJ $SSURDFK IRU DGGLWLRQDO LQIRUPDWLRQ
EHIRUH GHFLGLQJ WKH XVH RI DXWRPDWLRQ LH XVH
RI )06 PRGHV RU VHOHFWHG PRGHV IRU WKH
$GYHUVH )DFWRUV DQG 7\SLFDO (UURUV GHVFHQW DQG DSSURDFK
x 5HYLHZ RI WHUUDLQ LQIRUPDWLRQ DQG RWKHU

7KH IROORZLQJ IDFWRUV DQG ZRUNLQJ HUURUV RIWHQ DUH
REVHUYHG GXULQJ WUDQVLWLRQ DQG OLQH WUDLQLQJ
x /DWH DQG WKHUHIRUH UXVKHG GHVFHQW DQG x *XLGHOLQHV IRU GHVFHQW SODQQLQJ PRQLWRULQJ DQG
DSSURDFK SUHSDUDWLRQ DQG EULHILQJ UHVXOWLQJ LQ DGMXVWPHQW
WKH RPLVVLRQ RI LPSRUWDQW LWHPV
x )DLOXUH WR FURVVFKHFN )06 GDWD HQWULHV

3DJH

7KH IROORZLQJ %ULHILQJ 1RWHV PD\ EH UHIHUUHG WR IRU D
FRPSOHWH RYHUYLHZ RI WKH SURFHGXUHV RSHUDWLRQDO
UHFRPPHQGDWLRQV DQG WHFKQLTXHV LQYROYHG LQ WKH
FRQGXFW RI WKH GHVFHQW DQG DSSURDFK
x 6WDQGDUG 2SHUDWLQJ 3URFHGXUHV
x (QHUJ\ 0DQDJHPHQW GXULQJ

$SSURDFK
x 7HUUDLQ $ZDUHQHVV
x %HLQJ 3UHSDUHG IRU *RDURXQG
$HURSODQHV $SSHQGL[ ± &RQWHQWV RI
2SHUDWLRQV 0DQXDOV

$LUFUDIW 2SHUDWLRQV 3$16236 'RF
9ROXPH , ± )OLJKW SURFHGXUHV
x )$$ $& ± 6WDQGDUG 2SHUDWLQJ

3URFHGXUHV IRU )OLJKWGHFN &UHZ 0HPEHUV
x -$5236 DQG DVVRFLDWHG $SSHQGL[ $

± 2SHUDWLRQV 0DQXDOV ± VWUXFWXUH DQG
FRQWHQWV

3DJH
(QHUJ\0DQDJHPHQWGXULQJ$SSURDFK

,QDELOLW\ WR DVVHVV RU PDQDJH WKH DLUFUDIW HQHUJ\ $SSUR[LPDWHO\ RI UXVKHG DQG XQVWDEOH
OHYHO GXULQJ WKH DSSURDFK RIWHQ LV FLWHG DV D FDXVDO DSSURDFKHV LQYROYH DQ LQFRUUHFW PDQDJHPHQW RI WKH
IDFWRU LQ XQVWDELOL]HG DSSURDFKHV DLUFUDIW HQHUJ\ OHYHO UHVXOWLQJ LQ DQ H[FHVV RU GHILFLW
RI HQHUJ\ DV IROORZV
(LWKHU D GHILFLW RI HQHUJ\ EHLQJ ORZ DQGRU VORZ RU x %HLQJ VORZ DQGRU ORZ RQ DSSURDFK RI
DQ H[FHVV RI HQHUJ\ EHLQJ KLJK DQGRU IDVW PD\ HYHQWV RU
UHVXOW LQ DSSURDFKDQGODQGLQJ DFFLGHQWV VXFK DV
x %HLQJ IDVW DQGRU KLJK RQ DSSURDFK RI
x /RVV RI FRQWURO HYHQWV
x /DQGLQJ VKRUW
$LUFUDIW (QHUJ\ /HYHO
x +DUG ODQGLQJ
7KH OHYHO RI HQHUJ\ RI DQ DLUFUDIW LV D IXQFWLRQ RI WKH
x 7DLO VWULNH
IROORZLQJ SULPDU\ IOLJKW SDUDPHWHUV DQG RI WKHLU UDWH
RI FKDQJH WUHQG
x 5XQZD\ H[FXUVLRQ DQGRU x $LUVSHHG DQG VSHHG WUHQG
x $OWLWXGH DQG YHUWLFDO VSHHG RU IOLJKW SDWK DQJOH
x 5XQZD\ RYHUUXQ
x 'UDJ LH GUDJ FDXVHG E\ VSHHG EUDNHV
7KLV %ULHILQJ 1RWH SURYLGHV EDFNJURXQG LQIRUPDWLRQ VODWVIODSV DQGRU ODQGLQJ JHDU DQG
DQG RSHUDWLRQDO JXLGHOLQHV IRU D EHWWHU x 7KUXVW OHYHO
XQGHUVWDQGLQJ
x (QHUJ\ PDQDJHPHQW GXULQJ LQWHUPHGLDWH 2QH RI WKH WDVNV RI WKH SLORW LV WR FRQWURO DQG PRQLWRU
DSSURDFK WKH HQHUJ\ OHYHO RI WKH DLUFUDIW XVLQJ DOO DYDLODEOH
+RZ IDVW FDQ \RX IO\ GRZQ WR WKH )$) RU
FXHV LQ RUGHU WR
RXWHU PDUNHU " x 0DLQWDLQ WKH DLUFUDIW DW WKH DSSURSULDWH HQHUJ\
OHYHO IRU WKH IOLJKW SKDVH DQG FRQILJXUDWLRQ
x (QHUJ\ PDQDJHPHQW GXULQJ ILQDO DSSURDFK IOLJKW SDWK VSHHG DQG WKUXVW RU
+D]DUGV DVVRFLDWHG ZLWK IO\LQJ RQ WKH
EDFNVLGH RI WKH SRZHU FXUYH DV GHILQHG E\ x 5HFRYHU WKH DLUFUDIW IURP D ORZ HQHUJ\ RU KLJK
)LJXUH HQHUJ\ VLWXDWLRQ LH IURP
EHLQJ WRR VORZ DQGRU WRR ORZ RU
5HIHU DOVR WR %ULHILQJ 1RWH
EHLQJ WRR IDVW DQGRU WRR KLJK
² 7KH )LQDO
$SSURDFK 6SHHG

3DJH
&RQWUROOLQJ WKH DLUFUDIW HQHUJ\ OHYHO LPSOLHV 7KH PLQLPXP VWDELOL]DWLRQ KHLJKW VKRXOG EH
EDODQFLQJ WKH DLUVSHHG WKUXVW DQG GUDJ DQG IOLJKW
SDWK RU WUDQVLHQWO\ WUDGLQJ RQH SDUDPHWHU IRU
x IW DERYH DLUILHOG HOHYDWLRQ LQ ,0&
DQRWKHU x IW DERYH DLUILHOG HOHYDWLRQ LQ 90&
$XWRSLORW DQG IOLJKW GLUHFWRU PRGHV DLUFUDIW

$LUOLQHV XVXDOO\ UHTXLUH IOLJKW FUHZV WR FURVV WKH
LQVWUXPHQWV ZDUQLQJV DQG SURWHFWLRQV DUH GHVLJQHG
RXWHU PDUNHU LH W\SLFDOO\ EHWZHHQ IW DQG
WR UHOLHYH RU DVVLVW WKH IOLJKW FUHZ LQ WKHVH WDVNV
IW DERYH DLUILHOG HOHYDWLRQ ZLWK WKH DLUFUDIW
FRQILJXUHG LQ WKH ODQGLQJ FRQILJXUDWLRQ
*RLQJ 'RZQ DQG 6ORZLQJ 'RZQ 7KLV DOORZV WLPH EHIRUH UHDFKLQJ WKH DSSOLFDEOH
VWDELOL]DWLRQ KHLJKW IRU
+RZ )DVW &DQ \RX )O\ 'RZQ WR WKH 0DUNHU"
x 6WDELOL]LQJ WKH ILQDO DSSURDFK VSHHG DQG
$ VWXG\ E\ WKH 86 176% DFNQRZOHGJHV WKDW x &RPSOHWLQJ WKH ODQGLQJ FKHFNOLVW
PDLQWDLQLQJ D KLJK DLUVSHHG GRZQ WR WKH RXWHU
PDUNHU 20 GRHV QRW IDYRU WKH FDSWXUH RI WKH
JOLGHVORSH EHDP E\ WKH DXWRSLORW RU WKH DLUFUDIW $LUFUDIW GHFHOHUDWLRQ FKDUDFWHULVWLFV
VWDELOL]DWLRQ DW WKH GHILQHG VWDELOL]DWLRQ KHLJKW

$OWKRXJK GHFHOHUDWLRQ FKDUDFWHULVWLFV ODUJHO\
7KH VWXG\ FRQFOXGHV WKDW QR VSHHG UHVWULFWLRQ GHSHQGV RQ WKH DLUFUDIW W\SH DQG JURVVZHLJKW WKH
VKRXOG EH LPSRVHG ZKHQ ZLWKLQ QP WR QP EHIRUH IROORZLQJ W\SLFDO YDOXHV FDQ EH FRQVLGHUHG IRU D
WKH 20 PDLQO\ LQ LQVWUXPHQW PHWHRURORJLFDO TXLFN DVVHVVPHQW DQG PDQDJHPHQW RI WKH DLUFUDIW
FRQGLWLRQV ,0& GHFHOHUDWLRQ FDSDELOLW\
x 'HFHOHUDWLRQ LQ OHYHO IOLJKW

1HYHUWKHOHVV $7& UHTXHVWV IRU PDLQWDLQLQJ D KLJK
DLUVSHHG GRZQ WR WKH PDUNHU NW WR NW ,$6 ZLWK DSSURDFK IODSV H[WHQGHG
W\SLFDOO\ DUH IUHTXHQW DW KLJKGHQVLW\ DLUSRUWV WR
WR NWSHUQP
LQFUHDVH WKH ODQGLQJ UDWH
7KH SXUSRVH RI WKH IROORZLQJ SDUW LV WR

GXULQJ H[WHQVLRQ RI JHDU DQG ODQGLQJ IODSV
WR NWSHUQP
x 5HFDOO WKH GHILQLWLRQ RI VWDELOL]DWLRQ KHLJKWV
x 'HFHOHUDWLRQ RQ D GHJUHH JOLGH SDWK
x ,OOXVWUDWH WKH DLUFUDIW GHFHOHUDWLRQ FKDUDFWHULVWLFV
LQ OHYHO IOLJKW DQG RQ D GHJUHH JOLGH SDWK DQG
ZLWK DSSURDFK IODSV DQG JHDU GRZQ GXULQJ
H[WHQVLRQ RI ODQGLQJ IODSV
x 3URYLGH JXLGHOLQHV IRU DVVHVVPHQW RI WKH WR NW SHU QP

PD[LPXP VSHHG ZKLFK UHDVRQDEO\ FDQ EH
PDLQWDLQHG GRZQ WR WKH PDUNHU DV D IXQFWLRQ RI 1RWH
WKH GLVWDQFH IURP WKH 20 WR WKH UXQZD\ $ GHJUHH JOLGH SDWK LV W\SLFDOO\ HTXLYDOHQW WR D
WKUHVKROG DQG GHVFHQWJUDGLHQW RI IWSHUQP RU D IWPQ
YHUWLFDO VSHHG IRU D ILQDO DSSURDFK JURXQG

WKH GHVLUHG VWDELOL]DWLRQ KHLJKW VSHHG RI NW
'HFHOHUDWLQJ RQ D GHJUHH JOLGH SDWK LQ FOHDQ
6WDELOL]DWLRQ KHLJKW FRQILJXUDWLRQ XVXDOO\ LV QRW SRVVLEOH
:KHQ FDSWXULQJ WKH JOLGH VORSH ZLWK RQO\ VODWV

7KH GHILQLWLRQ DQG FULWHULD IRU D VWDELOL]HG DSSURDFK H[WHQGHG LH ZLWK QR IODSV W\SLFDOO\ IW
DUH GHILQHG LQ %ULHILQJ 1RWH )O\LQJ 6WDELOL]HG DQG QP DUH IORZQ ZKLOH HVWDEOLVKLQJ WKH
$SSURDFKHV ODQGLQJ FRQILJXUDWLRQ DQG VWDELOL]LQJ DW WKH WDUJHW
ILQDO DSSURDFK VSHHG

3DJH
6SHHGEUDNHV PD\ EH XVHG WR DFKLHYH D IDVWHU
GHFHOHUDWLRQ DV DOORZHG IRU WKH DLUFUDIW W\SH 00 20
'HFHOHUDWLRQ
8VXDOO\ WKH XVH RI VSHHGEUDNHV LV QRW
6HJPHQW
UHFRPPHQGHG RU QRW SHUPLWWHG ZKHQ EHORZ IW NWQP
DERYH DLUILHOG HOHYDWLRQ DQGRU LQ WKH ODQGLQJ IODSV
FRQILJXUDWLRQ
IW
7\SLFDOO\ VODWV VKRXOG EH H[WHQGHG QRW ODWHU WKDQ
QP EHIRUH WKH )$)

IW
IW
QP
)LJXUH LOOXVWUDWHV WKH DLUFUDIW GHFHOHUDWLRQ
FDSDELOLW\ DQG WKH PD[LPXP SRVVLEOH VSHHG DW WKH 9 $33 NW 9 0$; DW 20 NW
20 EDVHG RQ D FRQVHUYDWLYH GHFHOHUDWLRQ UDWH RI
NW SHU QP RQ D GHJUHH JOLGH SDWK
)LJXUH
7KH IROORZLQJ FRQGLWLRQV DUH FRQVLGHUHG
'HFHOHUDWLRQ DORQJ *OLGH 6ORSH 7\SLFDO
x ,0& VWDELOL]DWLRQ KHLJKW IW DERYH DLUILHOG
HOHYDWLRQ DQG
x )LQDO DSSURDFK VSHHG 9 $33 NW :KHQHYHU EHLQJ UHTXLUHG WR PDLQWDLQ D KLJK VSHHG
GRZQ WR WKH PDUNHU WKH DERYH TXLFN FRPSXWDWLRQ
PD\ EH FRQVLGHUHG IRU DVVHVVLQJ WKH IHDVLELOLW\ RI
7KH PD[LPXP GHFHOHUDWLRQ DFKLHYDEOH EHWZHHQ WKH WKH $7& UHTXHVW
20 W\SLFDOO\ QP IURP WKH UXQZD\ WKUHVKROG DQG
WKH VWDELOL]DWLRQ SRLQW IW DERYH DLUILHOG
HOHYDWLRQ QP LV
$YRLGLQJ WKH %DFN 6LGH RI WKH 3RZHU &XUYH
'XULQJ DQ XQVWDEOH DSSURDFK WKH DLUVSHHG RU WKH
NWSHUQP [ ± QP NW
WKUXVW VHWWLQJ RIWHQ LV REVHUYHG WR GHYLDWH IURP WKH
WDUJHW YDOXHV
,Q RUGHU WR EH VWDELOL]HG DW NW DW DERYH

x $LUVSHHG LV EHORZ WKH WDUJHW ILQDO DSSURDFK
DLUILHOG HOHYDWLRQ WKH PD[LPXP VSHHG WKDW FDQ EH
VSHHG 9 $33 DQGRU
DFFHSWHG DQG PDLQWDLQHG GRZQ WR WKH 20 LV
WKHUHIRUH
x 7KUXVW LV UHGXFHG DQG PDLQWDLQHG DW LGOH
NW NW NW

3DJH
7KUXVWUHTXLUHGWRIO\ FXUYH 7KH ULJKW VLGH RI WKH SRZHU FXUYH LV WKH QRUPDO ]RQH
RI RSHUDWLRQ
)LJXUH LOOXVWUDWHV WKH WKUXVWUHTXLUHGWRIO\ FXUYH
DOVR UHIHUUHG WR DV WKH SRZHU FXUYH
7KH WKUXVW EDODQFH LV VXFK WKDW DW JLYHQ WKUXVW OHYHO
DQ\ WHQGHQF\ WR DFFHOHUDWH LQFUHDVHV WKH WKUXVW
UHTXLUHGWRIO\ DQG KHQFH EULQJV EDFN WKH DLUFUDIW WR
7KUXVW 5HTXLUHG WR )O\ WKH LQLWLDO DLUVSHHG
GHJUHH JOLGH VORSH /DQGLQJ FRQILJXUDWLRQ

&RQYHUVHO\ DQ\ WHQGHQF\ WR GHFHOHUDWH GHFUHDVHV
*LYHQ JURVVZHLJKW WKH WKUXVWUHTXLUHGWRIO\ DQG KHQFH EULQJV EDFN
*LYHQ SUHVVXUH DOWLWXGH
*LYHQ IOLJK SDWK
WKH DLUFUDIW WR WKH LQLWLDO DLUVSHHG

7KUXVW UHTXLUHG LQ
2Q WKH EDFNVLGH RI WKH SRZHU FXUYH WKH WKUXVW

EDODQFH LV VXFK WKDW DW JLYHQ WKUXVW OHYHO DQ\
WHQGHQF\ WR GHFHOHUDWH LQFUHDVHV WKH WKUXVW

6WDEOH
UHTXLUHGWRIO\ DQG KHQFH DPSOLILHV WKH WHQGHQF\ WR
8QVWDEOH GHFHOHUDWH

7KUXVW IRU 9 $33

&RQYHUVHO\ DQ\ WHQGHQF\ WR DFFHOHUDWH GHFUHDVHV
WKH WKUXVWUHTXLUHGWRIO\ DQG KHQFH DPSOLILHV WKH

WHQGHQF\ WR DFFHOHUDWH
9 $33 9 PLQLPXP WKUXVW
$LUVSHHG NW
7KH PLQLPXP WKUXVW VSHHG 9 PLQLPXP WKUXVW
XVXDOO\ LV HTXDO WR WR 9 VWDOO LQ ODQGLQJ
FRQILJXUDWLRQ
)LJXUH
3RZHU &XUYH 7\SLFDO

7KH PLQLPXP ILQDO DSSURDFK VSHHG LV VOLJKWO\ LQ WKH
EDFNVLGH RI WKH SRZHU FXUYH
7KH SRZHU FXUYH IHDWXUHV WKH IROORZLQJ HOHPHQWV
x $ SRLQW RI PLQLPXP WKUXVWUHTXLUHGWRIO\

,I WKH DLUVSHHG LV DOORZHG WR GHFUHDVH EHORZ WKH ILQDO
x $ SDUW ORFDWHG ULJKW RI WKLV SRLQW DSSURDFK VSHHG PRUH WKUXVW LV UHTXLUHG WR PDLQWDLQ
WKH GHVLUHG IOLJKW SDWK DQGRU WR UHJDLQ WKH WDUJHW
x $ SDUW ORFDWHG OHIW RI WKLV SRLQW FDOOHG WKH
VSHHG
EDFNVLGH RI WKH SRZHU FXUYH
7KH GLIIHUHQFH EHWZHHQ WKH DYDLODEOHWKUXVW DQG WKH ,Q DGGLWLRQ LI WKH WKUXVW LV VHW DQG PDLQWDLQHG DW LGOH
WKUXVWUHTXLUHGWRIO\ LH WKH WKUXVW EDODQFH QR HQHUJ\ LV LPPHGLDWHO\ DYDLODEOH WR UHFRYHU IURP D
ORZ VSHHG FRQGLWLRQ RU WR LQLWLDWH D JRDURXQG DV
x 5HSUHVHQWV WKH FOLPE RU DFFHOHUDWLRQ FDSDELOLW\
LOOXVWUDWHG LQ )LJXUH )LJXUH DQG )LJXUH
LI WKH DYDLODEOHWKUXVW H[FHHGV WKH UHTXLUHG
WKUXVW RU
x ,QGLFDWHV WKDW VSHHG DQGRU IOLJKW SDWK FDQQRW EH

PDLQWDLQHG LI WKH UHTXLUHGWKUXVW H[FHHGV WKH
DYDLODEOHWKUXVW

3DJH
(QJLQH DFFHOHUDWLRQ FKDUDFWHULVWLFV
:KHQ IO\LQJ WKH ILQDO DSSURDFK VHJPHQW ZLWK WKH 7KH DLUFUDIW FHUWLILFDWLRQ )$5 ± 3DUW HQVXUHV
WKUXVW VHW DQG PDLQWDLQHG DW LGOH DSSURDFK LGOH WKH WKDW WKH WKUXVW DFKLHYHG DIWHU VHFRQGV VWDUWLQJ
SLORW VKRXOG EH DZDUH RI WKH DFFHOHUDWLRQ IURP IOLJKWDSSURDFK LGOH DOORZV D PLQLPXP FOLPE
FKDUDFWHULVWLFV RI MHW HQJLQHV DV LOOXVWUDWHG EHORZ JUDGLHQW RI IRU JRDURXQG
7KUXVW 5HVSRQVH IURP ,GOH WR *$ 7KUXVW 7KUXVW 5HVSRQVH $SSURDFK ,GOH WR *$
W\SLFDO HQJLQHWRHQJLQH VFDWWHU DLFUDIW FHUWLILFDWLRQ UHTXLUHPHQWV

7KUXVW LQ RI *$ WKUXVW

7KUXVW LQ *$ WKUXVW

VHFRQGV )$5

$SSURDFK
LGOH

7LPH VHFRQGV
7LPH VHFRQGV
)LJXUH )LJXUH
(QJLQH 5HVSRQVH 6FDWWHU 7\SLFDO &HUWLILHG 7KUXVW 5HVSRQVH 7\SLFDO
7KH DFFHOHUDWLRQ FDSDELOLW\ RI D MHW HQJLQH LV

FRQWUROOHG WR
x 3URWHFW WKH HQJLQH DJDLQVW D VWDOO RU IODPHRXW
DQG
x &RPSO\ ZLWK WKH HQJLQH DQG DLUFUDIW FHUWLILFDWLRQ
UHTXLUHPHQWV 86 )$5 ± 3DUW DQG )$5 ±
3DUW UHVSHFWLYHO\ RU WKH DSSOLFDEOH
HTXLYDOHQW UHJXODWLRQ
7KH HQJLQH FHUWLILFDWLRQ )$5 ± 3DUW HQVXUHV D
WLPH RI VHFRQGV RU OHVV WR DFFHOHUDWH IURP WR
RI WKH JRDURXQG WKUXVW

3DJH
*RDURXQG IURP ORZ VSHHGORZ WKUXVW
7DEOH LQGLFDWHV WKH WKUXVW UHTXLUHG LQ RI WKH )LJXUH LOOXVWUDWHV WKH FRQVHTXHQFHV DVVRFLDWHG
72*$ WKUXVW GXULQJ WKH WUDQVLWLRQ IURP D VWDELOL]HG ZLWK IO\LQJ DQ DSSURDFK ZLWK
DSSURDFK WR D JRDURXQG
x 6SHHG EHORZ WKH WDUJHW ILQDO DSSURDFK VSHHG
9 $33 DQGRU
3KDVH RI 72*$ 7KUXVW x 7KUXVW QRW VWDELOL]HG RU VHW DQG PDLQWDLQHG DW
LGOH
6WDELOL]HG DSSURDFK ,Q FDVH RI JRDURXQG WKH LQLWLDO DOWLWXGH ORVV DQG WKH
WLPH UHTXLUHG IRU UHFRYHULQJ WKH LQLWLDO DOWLWXGH DUH
GHJUHH JOLGH SDWK 9 $33 LQFUHDVHG LI DLUVSHHG LV ORZHU WKDQ WKH ILQDO
DSSURDFK VSHHG DQGRU LI WKUXVW LV QRW VWDELOL]HG RU
VHW DW LGOH
$UUHVWLQJ DOWLWXGH ORVV
$OWLWXGH /RVV LQ *RDURXQG
³3RVLWLYH &OLPE´ ! /DQGLQJ &RQILJXUDWLRQ
9 $33 6WDELOL]HG WKUXVW

7DEOH
7KUXVW 5HTXLUHG GXULQJ *$ ,QLWLDWLRQ

LQ IHHW IURP JRDURXQG LQLWLDWLRQ

9 $33
7KUXVW GHFUHDVLQJ
$OWLWXGH /RVV
7DEOH DQG )LJXUH LOOXVWUDWH WKH LPSRUWDQFH RI

EHLQJ VWDELOL]HG RQ VSHHG DQG RQ WKUXVW ZKHQ

LQLWLDWLQJ D JRDURXQG

9 $33 ± NW ,GOH

9 $33 ,GOH

7LPH VHFRQGV
)LJXUH
(IIHFW RI ,QLWLDO 6SHHG DQG 7KUXVW
RQ $OWLWXGH /RVV GXULQJ *RDURXQG
7\SLFDO

3DJH

$ GHFHOHUDWLRQ EHORZ WKH ILQDO DSSURDFK VSHHG
VKRXOG EH DFFHSWHG RQO\ LQ WKH IROORZLQJ FDVHV
x *3:6 WHUUDLQ DYRLGDQFH PDQHXYHU
x &ROOLVLRQ DYRLGDQFH PDQHXYHU DQG
x :LQGVKHDU SURFHGXUH
1HYHUWKHOHVV LQ DOO WKUHH FDVHV WKH WKUXVW OHYHUV

PXVW EH DGYDQFHG WR WKH PD[LPXP WKUXVW
LH JRDURXQG WKUXVW ZKLOH LQLWLDWLQJ WKH PDQHXYHU

DORQJ ZLWK WKH DERYH LQIRUPDWLRQ IRU D FRPSOHWH
RYHUYLHZ RI WKH DSSURDFK PDQDJHPHQW
x )O\LQJ &RQVWDQWDQJOH 1RQSUHFLVLRQ

$SSURDFKHV
x ² 7KH )LQDO $SSURDFK 6SHHG
$HURSODQHV $SSHQGL[

9ROXPH , ± )OLJKW 3URFHGXUHV
2WKHU 5HIHUHQFHV
x 86 1DWLRQDO 7UDQVSRUWDWLRQ 6DIHW\ %RDUG
176% ± 5HSRUW 176%$$6 ±6SHFLDO
6WXG\ )OLJKW &UHZ &RRUGLQDWLRQ 3URFHGXUH LQ
$LU &DUULHU ,QVWUXPHQW /DQGLQJ 6\VWHP
$SSURDFK $FFLGHQWV

3DJH
&KDSWHU
$SSURDFK+D]DUGV$ZDUHQHVV
²$SSURDFK+D]DUGV$ZDUHQHVV*HQHUDO
,QWURGXFWLRQ
)DFWRUV WKDW PD\ FRQWULEXWH WR DSSURDFKDQG )DFWRU RI (YHQWV

ODQGLQJ DFFLGHQWV LQFOXGH IOLJKW RYHU KLOO\ WHUUDLQ
UHGXFHG YLVLELOLW\ YLVXDO LOOXVLRQV DGYHUVH ZLQGV 1LJKW WLPH
FRQWDPLQDWHG UXQZD\V DQGRU OLPLWHG DSSURDFK DLGV
,0&
)OLJKW FUHZV VKRXOG EH DZDUH RI WKH FRPSRXQGLQJ
QDWXUH RI WKHVH KD]DUGV GXULQJ DSSURDFK DQG 'DUNQHVV RU WZLOLJKW
ODQGLQJ
1RQSUHFLVLRQ DSSURDFK RU YLVXDO
6WDWLVWLFDO GDWD
DSSURDFK
$SSURDFKDQGODQGLQJ LV WKH PRVW KD]DUGRXV SKDVH 3UHFLSLWDWLRQ UDLQ RU VQRZ
RI DQ\ IOLJKW DV LOOXVWUDWHG E\ WKH IROORZLQJ GDWD $EVHQFH RI UDGDU VHUYLFH
x 2YHU WKH SDVW \HDUV DSSURDFKDQGODQGLQJ $GYHUVH ZLQG KLJK FURVVZLQG
DFFLGHQWV DFFRXQWHG IRU RI WRWDO KXOO WDLO ZLQG RU ZLQG VKHDU
ORVVHV
7KLV VWDWLVWLF GRHV QRW VKRZ D GRZQZDUG WUHQG $EVHQFH RI *3:6 RU UDGLR
DOWLPHWHU
x 7KH IOLJKW VHJPHQW IURP WKH RXWHU PDUNHU WR WKH
UXQZD\ WKUHVKROG DYHUDJHV RQO\ RI IOLJKW $EVHQFH RI OHWGRZQ QDYDLG
WLPH EXW DFFRXQWV IRU RI KXOO ORVVHV DSSURDFKUXQZD\ OLJKWLQJ RU 9$6,
3$3,
7DEOH 7DEOH DQG 7DEOH LOOXVWUDWH WKH 6SDWLDO GLVRULHQWDWLRQ RU YLVXDO
UHVSHFWLYH FRQWULEXWLRQV RI WKH IDFWRUV LQYROYHG LQ LOOXVLRQV
x $OO DSSURDFKDQGODQGLQJ DFFLGHQWV 5XQZD\ FRQWDPLQDWLRQ VWDQGLQJ
ZDWHU VOXVK VQRZ RU LFH
x &),7 HYHQWV DQG
x 5XQZD\ H[FXUVLRQV DQG RYHUUXQV 7DEOH

6RXUFH )OLJKW 6DIHW\ )RXQGDWLRQ ± $/$5 7DVN )RUFH $OO $SSURDFKDQG/DQGLQJ (YHQWV
$SSURDFK +D]DUGV $ZDUHQHVV ² *HQHUDO

3DJH
)OLJKW &UHZ
)DFWRU RI (YHQWV x )DWLJXH ± UHGXFHG DZDUHQHVV
/RQJ GXW\ WLPH
/RZ YLVLELOLW\
/RQJKDXO RSHUDWLRQ RU
+LOO\ RU PRXQWDLQRXV WHUUDLQ 6KRUWKDXO RU PHGLXPKDXO PXOWLSOH
OHJV RSHUDWLRQ
7DEOH x 8QIDPLOLDU DLUSRUW DQGRU
&),7 (YHQWV x 8QIDPLOLDU LQVWUXPHQW RU YLVXDO DSSURDFK
SURFHGXUH
)DFWRU RI (YHQWV ([SHFWHG $SSURDFK
/RZ YLVLELOLW\ x 6WHSGRZQ QRQSUHFLVLRQ DSSURDFK RU FLUFOLQJ
DSSURDFK ZLWK QR 9$6, 3$3,
$GYHUVH ZLQG FRQGLWLRQV x 9LVXDO DSSURDFK LQ GDUNQHVV DQGRU
x $QWLFLSDWHG ODVWPLQXWH UXQZD\ FKDQJH
7DEOH
5XQZD\ ([FXUVLRQV DQG 2YHUUXQV $SSURDFK &KDUWV
x $EVHQFH RI D SXEOLVKHG 67$5
$ZDUHQHVV 3URJUDP 2XWOLQH
x 0LVVHGDSSURDFK SRVVLEOH FRQIOLFW ZLWK WDNHRII
$ FRPSDQ\ DZDUHQHVV SURJUDP RQ DSSURDFKDQG RQ LQWHUVHFWLQJ UXQZD\V DQGRU
ODQGLQJ KD]DUGV VKRXOG UHYLHZ DQG GLVFXVV WKH x ,QFRUUHFW RU PLVVLQJ LQIRUPDWLRQ
IROORZLQJ IDFWRUV WKDW PD\ FRQWULEXWH WR DSSURDFK
DQGODQGLQJ DFFLGHQWV
:KHQ SUHSDULQJ DQG EULHILQJ DQ DSSURDFK WKHVH $LUSRUW ,QIRUPDWLRQ 6HUYLFHV
IDFWRUV PD\ EH HLWKHU x ,QDFFXUDWH 7$) LQIRUPDWLRQ
x .QRZQ IURP WKH FUHZ E\ PHDQV RI 127$0V x $EVHQFH RI FXUUHQW ZHDWKHU UHSRUWV
GLVSDWFKHU¶V EULHILQJ $7,6 HWF DQG WKXV PD\
EH EULHIHG DQG DFFRXQWHG IRU RU x $EVHQFH RI 92/0(7
x 8QNQRZQ DQG WKXV EH GLVFRYHUHG DV WKH x $EVHQFH RI $7,6 RU RI (QJOLVK YHUVLRQ RI $7,6
DSSURDFKDQGODQGLQJ SURJUHVVHV PHVVDJH DQGRU
x ,QDFFXUDWH RU RXWGDWHG $7,6 LQIRUPDWLRQ
$LUFUDIW (TXLSPHQW DEVHQFH RI UHJXODU $7,6 XSGDWH ZKHQ
x 8VH RU DEVHQFH RI WKH IROORZLQJ VDIHW\ UHTXLUHG
HQKDQFLQJ HTXLSPHQW
*3:6 $LUSRUW $LU 7UDIILF &RQWURO 6HUYLFHV
7$:6 x $EVHQFH RU SULPDU\ DQGRU VHFRQGDU\
7&$6
VXUYHLOODQFH UDGDU
:LQG VKHDU ZDUQLQJ DQG JXLGDQFH DQGRU
x ,QDGHTXDWH RU LQHIIHFWLYH UDGDU YHFWRULQJ
SUDFWLFHV
3UHGLFWLYH ZLQGVKHDU V\VWHP

3DJH
x ,QDGHTXDWH RU QRQVWDQGDUG DLU WUDIILF FRQWURO x 8QVHFXUHG DLUSRUW LH DEVHQFH RI DLUSRUW
SURFHGXUHV SHULPHWHU IHQFHV DOORZLQJ YHKLFOHV SHUVRQV RU
DQLPDOV WR DFFHVV WR UXQZD\ RU PDQHXYHULQJ
x ,QDGHTXDWH DLU WUDIILF IORZ PDQDJHPHQW
DUHDV
x 0L[LQJ RI ,)5 DQG 9)5 WUDIILFV

x 1R LOOXPLQDWLRQ RI ZLQG VRFN RU ZLQG ³7´
x )UHTXHQW XQFRQWUROOHG 9)5 WUDIILFV LQ DLUSRUW DQGRU
YLFLQLW\
x )DGHG SDLQWLQJ RI UXQZD\ DQGRU WD[LZD\V
x )UHTXHQF\ FRQJHVWLRQ FRQWUROOHU RYHUORDG PDUNLQJV
FDXVHG E\ KLJK GHQVLW\ WUDIILF RU E\ D VLQJOH

FRQWUROOHU RSHUDWLQJ WRZHU DQG JURXQG
IUHTXHQFLHV 7HUUDLQ
x $EVHQFH RI DGHTXDWH 9+) FRYHUDJH LQ NQRZQ x 7UHHV RU PDQPDGH REVWDFOHV DQWHQQDV
),5 RU 70$ VHFWRUV SHQHWUDWLQJ WKH REVWDFOH FOHDUDQFH OHYHO
x ,QDGHTXDWH FRRUGLQDWLRQ EHWZHHQ LQWHUQDWLRQDO x 7RSRJUDSKLFDO IHDWXUHV UHTXLULQJ XQXVXDO

DQG GRPHVWLF ),5V SURFHGXUHV DQG UHGXFHG VDIHW\ PDUJLQV DQGRU
x $EVHQFH RI RU IDLOXUH WR XVH ODQGOLQH x 7HUUDLQ IHDWXUHV UHVXOWLQJ LQ *3:6 DFWLYDWLRQ

FRPPXQLFDWLRQV EHWZHHQ WZR FORVH DLUSRUWV GXULQJ DSSURDFK
DQGRU
x $EVHQFH RI (QJOLVK ODQJXDJH SURILFLHQF\ LQ 5HIHU WR %ULHILQJ 1RWH ² 7HUUDLQ ,OOXVLRQV
$7& FRPPXQLFDWLRQV DQGRU XVH RI QRQ $ZDUHQHVV IRU H[SDQGHG LQIRUPDWLRQ

VWDQGDUG SKUDVHRORJ\
9LVXDO ,OOXVLRQV
$LUSRUW (TXLSPHQW x $LUSRUW HQYLURQPHQW EODFN KROH
x $EVHQFH RI OLPLWHG ORZ LQWHQVLW\ DSSURDFK x 5XQZD\ HQYLURQPHQW DQGRU

DQG UXQZD\ OLJKWLQJ RU SDUW RI LW
x :HDWKHU FRQGLWLRQV
x 1RQVWDQGDUG UXQZD\HGJH OLJKWV VSDFLQJ
x $EVHQFH RI ,/6 5HIHU WR %ULHILQJ 1RWH ² 9LVXDO ,OOXVLRQV
$ZDUHQHVV IRU H[SDQGHG LQIRUPDWLRQ

x ,/6 XQXVDEOH EH\RQG D VSHFLILF SRLQW EHFDXVH
RI REVWDFOHV RU EHORZ D VSHFLILF DOWLWXGH
EHFDXVH RI DSSURDFK RYHU ZDWHU
9LVLELOLW\
x ,/6 ZLWKRXW 20
x 'DUNQHVV ORZ YLVLELOLW\ UDLQ IRJ PLVW KD]H
x ,/6 ZLWKRXW 9$6,3$3, WR VXSSRUW WKH YLVXDO ORZ OLJKWLQJ VPRNH
VHJPHQW
x 2IIVHW 925'0( DSSURDFK

:LQG FRQGLWLRQV
x 925'0( ZLWK LQRSHUDWLYH '0(
x 6KLIWLQJ RU JXVW\ ZLQG FURVVZLQG RU WDLO ZLQG
x 925 LQFRUUHFW FDOLEUDWLRQ DQGRU
x 1'% NQRZQ DV XQUHOLDEOH LQ DGYHUVH ZHDWKHU x .QRZQ IUHTXHQW ZLQG VKHDU RQ ILQDO DSSURDFK RI
FRQGLWLRQV VSHFLILF UXQZD\ XQGHU DGYHUVH ZHDWKHU DQG RU

ZLQG FRQGLWLRQV
x 1RQSUHFLVLRQ RU FLUFOLQJ DSSURDFK ZLWK
DEVHQFH RI 9$6, 3$3, 5HIHU WR %ULHILQJ 1RWH ² :LQG 6KHDU
$ZDUHQHVV IRU H[SDQGHG LQIRUPDWLRQ

x 9$6,3$3, EHLQJ LQFRUUHFWO\ FDOLEUDWHG RU
LQRSHUDWLYH

3DJH
5XQZD\ FRQGLWLRQ 'HFLVLRQPDNLQJ DQG &RXQWHUPHDVXUHV
x :HW EXW NQRZQ DV VOLSSHU\ZKHQZHW

$ FRPSDQ\ DZDUHQHVV SURJUDP RQ DSSURDFKDQG
ODQGLQJ KD]DUGV VKRXOG VWUHVV WKH IROORZLQJ
x &RQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU VOXVK VQRZ
HOHPHQWV RI HIIHFWLYH FUHZ FRRUGLQDWLRQ DQG
RU LFH
GHFLVLRQPDNLQJ
x +HDY\ UXEEHU GHSRVLW LQ WRXFKGRZQ ]RQH

x &RPSO\ ZLWK VWDQGDUG RSHUDWLQJ SURFHGXUHV
623V SXEOLVKHG OLPLWDWLRQV VSHFLILF
x 5HGXFHG EUDNLQJ DFWLRQ
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG IO\LQJ
WHFKQLTXHV
x ,QVXIILFLHQW ZDWHU GUDLQDJH RU UXQZD\ VXUIDFH
FRQGLWLRQ OHDYLQJ ZDWHU SXGGOHV DIWHU UDLQ
x $GMXVW DQG XVH WKH DSSURDFK DQG JRDURXQG
DQGRU
EULHILQJV WR KHLJKWHQ WKH IOLJKW FUHZ DZDUHQHVV
RI WKH VSHFLILF KD]DUGV RI WKH DSSURDFK DQG
x 8QGXODWHG VXUIDFH LQ WRXFKGRZQ ]RQH DUHD
x $QWLFLSDWH DQG EH SUHSDUHG IRU WKH ZRUVW FDVH

LH ³H[SHFWLQJ WKH XQH[SHFWHG´ E\ DGRSWLQJ D
7D[LZD\V ³:KDW LI "´ DWWLWXGH
x $EVHQFH RI KLJKVSHHGH[LW WD[LZD\V 3UHSDUH RSWLRQV WR FRXQWHU DSSURDFKDQG

ODQGLQJ KD]DUGV IRU H[DPSOH
x $EVHQFH RI SDUDOOHO WD[LZD\ WKXV UHTXLULQJ EDFN
WUDFN RQ WKH DFWLYH UXQZD\ DQGRU 5HTXHVW D SUHFLVLRQ DSSURDFK LQWR WKH ZLQG
ZKHQHYHU DYDLODEOH
x 1RQVWDQGDUG WD[LZD\ PDUNLQJ DQGRU QRQ
VWDQGDUG VLJQV 'HILQH QH[W WDUJHWV DQG DQ DSSURDFK JDWH
WKDW PXVW EH PHW IRU WKH DSSURDFK WR EH
FRQWLQXHG
/RZ WHPSHUDWXUH RSHUDWLRQ
:DLW IRU EHWWHU FRQGLWLRQV IXHO SHUPLWWLQJ
x $EVHQFH RI D GHILQHG 2$7 WKUHVKROG EHORZ RU
ZKLFK D WHPSHUDWXUH FRUUHFWLRQ RQ SXEOLVKHG
DOWLWXGHV LV UHTXLUHG
'LYHUW WR DQ DLUSRUW ZLWK EHWWHU ZHDWKHU
FRQGLWLRQV ZLQG FRQGLWLRQV DQGRU UXQZD\
FRQGLWLRQV
%LUG 6WULNH +D]DUG
x 3HUPDQHQW RU VHDVRQDO ELUG DFWLYLW\ ZLWKRXW
DYDLODEOH ELUG FRQWURO SURJUDP DQG VTXDG

3DJH

'HGLFDWHG %ULHILQJ 1RWHV SURYLGH VSHFLILF DQG
H[SDQGHG LQIRUPDWLRQ RQ WKH IROORZLQJ DSSURDFK
KD]DUGV
x 7HUUDLQ $ZDUHQHVV
x 9LVXDO ,OOXVLRQV $ZDUHQHVV
x :LQGVKHDU $ZDUHQHVV
x 7HUUDLQ $YRLGDQFH 3XOOXS 0DQHXYHU
$VVRFLDWHG 'RFXPHQWV
7KH IROORZLQJ GRFXPHQWV SXEOLVKHG E\ WKH )OLJKW
6DIHW\ )RXQGDWLRQ VKRXOG EH FRQVLGHUHG DOVR ZKHQ
GHYHORSLQJ D FRPSDQ\ DZDUHQHVV SURJUDP RQ
DSSURDFKDQGODQGLQJ KD]DUGV
x $SSURDFK DQG /DQGLQJ 5LVN $ZDUHQHVV

7RRO&KHFNOLVW DQG
x $SSURDFK DQG /DQGLQJ 5LVN 5HGXFWLRQ

3ODQQLQJ *XLGH

3DJH
²7HUUDLQ$ZDUHQHVV²:KHQDQG+RZ"
,QWURGXFWLRQ
7HUUDLQ DZDUHQHVV LV GHILQHG DV WKH FRPELQHG )DFWRU RI (YHQWV

DZDUHQHVV DQG NQRZOHGJH RI
x $LUFUDIW SRVLWLRQ /RZ YLVLELOLW\
x $LUFUDIW DOWLWXGH
+LOO\ RU PRXQWDLQRXV WHUUDLQ
x $SSOLFDEOH PLQLPXP VDIH DOWLWXGH 06$
x 7HUUDLQ ORFDWLRQ DQG IHDWXUHV DQG
1RQSUHFLVLRQ DSSURDFK
x 2WKHU KD]DUGV $UHDV RI IODW WHUUDLQ
RIWHQ RQ UXQZD\ H[WHQGHG
:KHQ DQG KRZ WR EXLOG DQG PDLQWDLQ WHUUDLQ FHQWHUOLQH DQG ZLWKLQ QP RI
DZDUHQHVV " UXQZD\ WKUHVKROG
7KLV %ULHILQJ 1RWH SURYLGHV D VHW RI RSHUDWLRQDO 7DEOH
UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV WR
HVWDEOLVK DQG PDLQWDLQ WKH GHVLUHG OHYHO RI WHUUDLQ 7HUUDLQ )DFWRUV LQ &),7 (YHQWV
DZDUHQHVV
&),7 HYHQWV GXULQJ LQLWLDO LQWHUPHGLDWH DSSURDFK RU
6WDWLVWLFDO GDWD GXULQJ ILQDO DSSURDFK XVXDOO\ UHVXOW IURP D
SUHPDWXUH GHVFHQW EHORZ WKH LQLWLDODSSURDFK
&),7 HYHQWV DFFRXQW IRU DSSUR[LPDWHO\ PLQLPXPVDIHDOWLWXGH RU EHORZ WKH PLQLPXP
RI DSSURDFKDQGODQGLQJ DFFLGHQWV EXW DUH WKH GHVFHQWDOWLWXGH 0'$
OHDGLQJ FDXVH RI IDWDOLWLHV
7KH DEVHQFH RI DFTXLVLWLRQ RU WKH ORVV RI YLVXDO 1DYLJDWLRQ DQG $OWLWXGH 'HYLDWLRQV
UHIHUHQFHV LV WKH PRVW FRPPRQ FDXVDO IDFWRU LQ
&),7 DFFLGHQWV RFFXUULQJ GXULQJ DSSURDFKDQG :KHQ UHIHUULQJ WR WHUUDLQ DZDUHQHVV WKH IROORZLQJ
ODQGLQJ WKLV LQFOXGHV GHILQLWLRQV QHHG WR EH NHSW LQ PLQG
x 'HVFHQGLQJ EHORZ WKH 0'$+ RU '$+ ZLWKRXW
DGHTXDWH YLVXDO UHIHUHQFHV RU ZLWK LQFRUUHFW 1DYLJDWLRQ FRXUVH GHYLDWLRQ
YLVXDO UHIHUHQFHV HJ D OLJKWHG DUHD LQ WKH x 2SHUDWLRQ RI DQ DLUFUDIW EH\RQG WKH FRXUVH
DLUSRUW YLFLQLW\ D WD[LZD\ RU DQ RWKHU UXQZD\ RU FOHDUDQFH LVVXHG E\ $7& RU EH\RQG WKH GHILQHG
x &RQWLQXLQJ WKH DSSURDFK DIWHU WKH ORVV RI YLVXDO
DLUZD\ V\VWHP
UHIHUHQFHV HJ YLVXDO UHIHUHQFHV ORVW EHFDXVH $OWLWXGH GHYLDWLRQ
RI D IDVW PRYLQJ UDLQVKRZHU RU IRJ SDWFK
x 'HYLDWLRQ IURP WKH DVVLJQHG DOWLWXGH RU IOLJKW
OHYHO HTXDO WR RU JUHDWHU WKDQ IW
7HUUDLQ $ZDUHQHVV ² :KHQ DQG +RZ "

3DJH
,QDGHTXDWH WHUUDLQ VHSDUDWLRQ x 2SHUDWLRQV *ROGHQ 5XOHV UHIHU WR %ULHILQJ 1RWH

² 2SHUDWLRQV *ROGHQ 5XOHV
x $Q\ RSHUDWLRQ ZLWK D WHUUDLQ VHSDUDWLRQ RI OHVV
WKDQ IW LQ GHVLJQDWHG PRXQWDLQRXV DUHDV RU
7KH ILUVW JROGHQ UXOH VWDWHV )O\ 1DYLJDWH
OHVV WKDQ IW LQ DOO RWKHU DUHDV H[FHSW
&RPPXQLFDWH DQG 0DQDJH LQ WKDW RUGHU
RWKHUZLVH DXWKRUL]HG DQG SURSHUO\ DVVLJQHG E\
$7& LQ WHUPLQDO DUHDV 1DYLJDWH FDQ EH GHILQHG E\ WKH IROORZLQJ WKUHH
³NQRZ ZKHUH «´ VWDWHPHQWV
1DYLJDWLRQ FRXUVH GHYLDWLRQV DQG DOWLWXGH .QRZ ZKHUH \RX DUH

GHYLDWLRQV XVXDOO\ DUH FDXVHG E\ PRQLWRULQJ HUURUV
DQG PD\ UHVXOW LQ LQDGHTXDWH WHUUDLQ VHSDUDWLRQ .QRZ ZKHUH \RX VKRXOG EH DQG
.QRZ ZKHUH WKH WHUUDLQ DQG REVWDFOHV DUH

0RQLWRULQJ HUURUV LQYROYH WKH FUHZ LQDELOLW\ WR
PRQLWRU WKH DLUFUDIW WUDMHFWRU\ DQG LQVWUXPHQWV ZKLOH
SHUIRUPLQJ DXWRSLORW RU )06 HQWULHV RU ZKLOH EHLQJ
x $SSURDFK DQG JRDURXQG EULHILQJV
LQWHUUXSWHG RU GLVWUDFWHG
x $OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV
'HOD\HG UHFRJQLWLRQ RI PRQLWRULQJ HUURUV LV

HVWLPDWHG WR UHVXOW LQ WKH IROORZLQJ PHDQ GHYLDWLRQV :KHQ UHFHLYLQJ DQ DOWLWXGH FOHDUDQFH
IURP WKH LQWHQGHG YHUWLFDO RU ODWHUDO IOLJKW SDWK LPPHGLDWHO\ VHW WKH FOHDUHG DOWLWXGH LQ WKH
)&8 DOWLWXGH ZLQGRZ HYHQ EHIRUH
x IW LQ FDVH RI DOWLWXGH GHYLDWLRQ DQG UHDGEDFN LI DSSURSULDWH EHFDXVH RI
ZRUNORDG
x QDXWLFDO PLOHV LQ FDVH RI FRXUVH GHYLDWLRQ
(QVXUH WKDW VHOHFWHG DOWLWXGH LV FURVV

FKHFNHG E\ ERWK FUHZPHPEHUV
7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "
7KLV SDUDJUDSK SURYLGHV DQ RYHUYLHZ RI

(QVXUH WKDW WKH FOHDUHG DOWLWXGH LV DERYH WKH
DSSOLFDEOH PLQLPXP VDIH DOWLWXGH DQG
x 2SSRUWXQLWLHV DYDLODEOH WR HQKDQFH WHUUDLQ

DZDUHQHVV HJ RSHUDWLRQV PDQXDOV WHFKQLFDO
3RVLWLYHO\ FRQILUP DQ\ DOWLWXGH FOHDUDQFH
EHORZ WKH 06$ ZKHQ XQGHU UDGDU YHFWRULQJ
WUDLQLQJ QDYLJDWLRQ FKDUWV DQG
RU EH DZDUH RI DSSOLFDEOH PLQLPXP
YHFWRULQJ DOWLWXGH IRU WKH VHFWRU
x 2SHUDWLRQDO UHFRPPHQGDWLRQV DQG WHFKQLTXHV
SURSRVHG WR HVWDEOLVK DQG PDLQWDLQ WKH GHVLUHG
OHYHO RI WHUUDLQ DZDUHQHVV
x 'HVFHQW SURILOH PDQDJHPHQW
7KLV RYHUYLHZ LGHQWLILHV WKH PRVW LPSRUWDQW WHUUDLQ x (QHUJ\ PDQDJHPHQW
DZDUHQHVVLWHPV LH &),7FULWLFDO LWHP

x 7HUUDLQ DZDUHQHVV
6WDQGDUG 2SHUDWLQJ 3URFHGXUHV x $SSURDFK KD]DUGV DZDUHQHVV
6WDQGDUG RSHUDWLQJ SURFHGXUHV 623V VKRXOG x (OHPHQWV RI D VWDELOL]HG DSSURDFK DQG DSSURDFK
HPSKDVL]H WKH IROORZLQJ WHUUDLQDZDUHQHVVLWHPV JDWHV
x 7DVN VKDULQJ DQG VWDQGDUG FDOOV IRU HIIHFWLYH

FURVV FKHFN DQG EDFNXS SDUWLFXODUO\ IRU PRGH
x 5HDGLQHVV DQG FRPPLWPHQW WR UHVSRQG WR D
*3:6 7$:6 DOHUW DQG
VHOHFWLRQV DQG WDUJHW HQWULHV

3DJH
x 8VH RI UDGLR DOWLPHWHU 1RWH
7KH VHWWLQJ RI WKH EDURDOWLPHWHU EXJ DQG UDGLR &$7 ,, '$ RU &$7 , '$ FDQ EH VHW LQ UHDGLQHVV
DOWLPHWHU '+ VKRXOG EH LQ OLQH ZLWK WKH IRU D UHYHUVLRQ WR &$7 , PLQLPD
DSSOLFDEOH 623V
5DGLR DOWLPHWHU FDOORXWV FDQ EH HLWKHU

7KH IROORZLQJ W\SLFDO VXPPDU\ LV EDVHG RQ WKH
XVH RI 41+ IRU DOWLPHWHU VHWWLQJ FDOOHG YHUEDOL]HG E\ WKH 31) RU WKH IOLJKW
HQJLQHHU RU
%DUR %XJ 5$ '+

DXWRPDWLFDOO\ JHQHUDWHG E\ D V\QWKHVL]HG
YRLFH
9LVXDO 0'$'$ RI IW
LQVWUXPHQW
&DOORXWV VKRXOG EH WDLORUHG WR WKH DLUOLQH
DSSURDFK 1RWH RSHUDWLQJ SROLF\ DQG WR WKH W\SH RI DSSURDFK
RU
IW $$/ 7R HQKDQFH WKH IOLJKW FUHZ¶V WHUUDLQ DZDUHQHVV

D FDOORXW 5DGLR $OWLPHWHU $OLYH VKRXOG EH
1RQ,/6 0'$ IW DQQRXQFHG E\ WKH ILUVW FUHZPHPEHU REVHUYLQJ
WKH UDGLR DOWLPHWHU DFWLYDWLRQ DW
1RWH IW $*/
,/6 &$7 , '$ IW 7KH 5$ UHDGLQJ VKRXOG EH LQFOXGHG LQ WKH

LQVWUXPHQW VFDQ IRU WKH UHPDLQGHU RI WKH
1R 5$ 1RWH DSSURDFK
,/6 &$7 , 5$ '$ 5$ '+
7UDLQLQJ
,/6 &$7 ,, 1RWH
$OWLWXGH $ZDUHQHVV 3URJUDP
,/6 &$7 ,,, '$ 5$ '+
7KH LPSOHPHQWDWLRQ RI DQ DOWLWXGH DZDUHQHVV

ZLWK '+ 1RWH SURJUDP E\ VHYHUDO DLUOLQHV KDV UHGXFHG VLJQLILFDQWO\
WKH QXPEHU RI DOWLWXGH GHYLDWLRQV

,/6 &$7 ,,, 7'= DOWLWXGH $OHUW KHLJKW
$Q DOWLWXGH DZDUHQHVV SURJUDP FDQ EH GHYHORSHG

QR '+ EDVHG RQ WKH FRQWHQWV RI WKH %ULHILQJ 1RWHV
DQG ² $OWLWXGH 'HYLDWLRQV

7DEOH
6HWWLQJ RI %DUR $OWLPHWHU %XJ DQG 5DGLR $OWLPHWHU '+ 7KH DOWLWXGH DZDUHQHVV SURJUDP VKRXOG HPSKDVL]H
WKH IROORZLQJ DVSHFWV

1RWH
x $ZDUHQHVV RI DOWLPHWHU VHWWLQJ HUURUV HJ
7KH 5$ '+ FDQ EH VHW HJ DW IW IRU
WHUUDLQ DZDUHQHVV SXUSRVHV ,Q WKLV FDVH WKH
;; LQKJ YHUVXV ;; RU ;; LQKJ
RU
XVH RI WKH UDGLR DOWLPHWHU VKRXOG EH GLVFXVVHG
GXULQJ WKH DSSURDFK EULHILQJ ;; LQKJ YHUVXV ;; K3D
)RU DOO DSSURDFKHV H[FHSW &$7 , ZLWK 5$

&$7 ,, DQG &$7 ,,, ,/6 DSSURDFKHV x $ZDUHQHVV RI DOWLWXGH FRUUHFWLRQV IRU ORZ 2$7
WKH DSSURDFK 0,1,080 FDOORXW ZLOO EH EDVHG RQ RSHUDWLRQV DQG DZDUHQHVV RI SLORW¶V DQGRU
WKH EDURDOWLPHWHU EXJ VHW DW WKH 0'$+ RU FRQWUROOHU¶V UHVSRQVLELOLW\ LQ DSSO\LQJ WKHVH
WKH '$+ FRUUHFWLRQV

3DJH
3LORW &RQWUROOHU &RPPXQLFDWLRQV x 7HUUDLQ DYRLGDQFH SXOOXS PDQHXYHU VHH

%ULHILQJ 1RWH ² 5HVSRQVH WR *3:6 ² 3XOOXS
$ FRPSDQ\ DZDUHQHVV DQG WUDLQLQJ SURJUDP RQ SLORW
0DQHXYHU
FRQWUROOHU FRPPXQLFDWLRQV VKRXOG EH GHYHORSHG
DQG LPSOHPHQWHG LQYROYLQJ SLORWV DQG $7&
² (IIHFWLYH
SHUVRQQHO UHIHU WR %ULHILQJ 1RWH
)OLJKW 2YHUYLHZ
3LORW &RQWUROOHU &RPPXQLFDWLRQV
&RFNSLW 3UHSDUDWLRQ ± 'HSDUWXUH %ULHILQJ
5RXWH )DPLOLDUL]DWLRQ 3URJUDP

7KH FRPSXWHUL]HG IOLJKW SODQ VKRXOG EH FURVV
$ WUDLQLQJ SURJUDP VKRXOG EH LPSOHPHQWHG IRU FKHFNHG DJDLQVW WKH $7& FOHDUDQFH DQG WKH )06
GHSDUWXUH URXWH DSSURDFK DQG DLUSRUW IOLJKW SODQ XVLQJ WKH 6,' DQG HQURXWH FKDUWV WKH
IDPLOLDUL]DWLRQ XVLQJ )06 &'8 DQG WKH 1' WR VXSSRUW DQG LOOXVWUDWH WKLV
FURVVFKHFN
x +LJKUHVROXWLRQ SDSHU PDWHULDO
7KH WDNHRII DQG GHSDUWXUH EULHILQJ VKRXOG LQFOXGH

x 9LGHR SURJUDP DQGRU
WKH IROORZLQJ WHUUDLQDZDUHQHVVLWHPV XVLQJ DOO
x 6LPXODWRU ZLWK HQKDQFHG YLVXDO FDSDELOLW\ DYDLODEOH FKDUWV DQG IOLJKW GHFN GLVSOD\V WR VXSSRUW
DQG LOOXVWUDWH WKH EULHILQJ
:KHQHYHU ZDUUDQWHG QHZ SLORWV VKRXOG FRQGXFW D x 6LJQLILFDQW WHUUDLQ RU REVWDFOHV DORQJ WKH
URXWH IDPLOLDUL]DWLRQ FKHFN LQWHQGHG GHSDUWXUH FRXUVH DQG
x $V IOLJKW FUHZPHPEHU ZLWK D FKHFN DLUPDQ RU x 6,' URXWLQJ DQG PLQLPXP VDIH DOWLWXGHV
x $V REVHUYHU ZLWK D TXDOLILHG IOLJKWFUHZ
6WDQGDUG ,QVWUXPHQW 'HSDUWXUH 6,'

&),7 7UDLQLQJ SURJUDP
:KHQ IO\LQJ D SXEOLVKHG 6,' IOLJKW FUHZ VKRXOG
7KH &),7 WUDLQLQJ PRGXOH VKRXOG LQFOXGH WKH
IROORZLQJ DFDGHPLF DQG PDQHXYHULQJ DVSHFWV
x %H DZDUH RI ZKHWKHU RU QRW WKH GHSDUWXUH LV
UDGDUPRQLWRUHG E\ $7&
x 8QGHUVWDQGLQJ HDFK *3:6 PRGH WKLV VKRXOG x 0DLQWDLQ D VWHULOH FRFNSLW XQWLO UHDFKLQJ IW
LQFOXGH RU WKH VHFWRU PLQLPXP VDIH DOWLWXGH SDUWLFXODUO\
$VVRFLDWHG RSHUDWLRQDO VFHQDULRV

DW QLJKW RU LQ ,0&
x
3URWHFWLRQ HQYHORSH
0RQLWRU WKH FRUUHFW VHTXHQFLQJ RI WKH IOLJKW SODQ
DW HDFK ZD\SRLQW DQG WKH FRUUHFW JXLGDQFH DIWHU

DLUFUDIW FRQILJXUDWLRQ LH ODQGLQJ JHDU VHTXHQFLQJ WKH ZD\SRLQW SDUWLFXODUO\ DIWHU D
IODSV IOLJKW SODQ UHYLVLRQ RU DIWHU SHUIRUPLQJ D ',5 72
EDURPHWULF DOWLWXGH UDQJH RU UDGLR (QVXUH WKDW WKH GLUHFWLRQ RI WXUQ DQG WKH 72
DOWLWXGH UDQJH DQGRU ZD\SRLQW DUH LQ DFFRUGDQFH ZLWK WKH 6,'
DLUVSHHG UDQJH ,Q FDVH RI LQFRUUHFW IOLJKW SODQ VHTXHQFLQJ
DQGRU RI LQFRUUHFW ODWHUDO JXLGDQFH FUHZ

$OHUW RU ZDUQLQJ DFWLYDWLRQ VKRXOG EH DOHUW WR SHUIRUP D ',5 72 >DQ
DSSURSULDWH ZD\SRLQW@ RU WR UHYHUW WR

EDURPHWULFDOWLWXGH ORVV
VHOHFWHG ODWHUDO QDYLJDWLRQ
YHUWLFDO VSHHG
UDGLRDOWLPHWHU FORVXUH UDWH (QURXWH 1DYLJDWLRQ
UDGLR DOWLWXGH RU
7KH HQURXWH FKDUWV VKRXOG EH UHDGLO\ DFFHVVLEOH
JOLGH VORSH GHYLDWLRQ LQ UHDGLQHVV IRU D SRVVLEOH ORVV RI )06 QDYLJDWLRQ RU
LI DQ\ GRXEW H[LVWV DERXW WKH )06 ODWHUDO JXLGDQFH

3DJH
)OLJKW 3URJUHVV 0RQLWRULQJ $7,6
'XULQJ FOLPE FUXLVH DQG GHVFHQW IOLJKW FUHZ VKRXOG 5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV
x 0RQLWRU )06 JXLGDQFH DQG QDYLJDWLRQ DFFXUDF\

x 5XQZD\ LQ XVH W\SH RI DSSURDFK
x 0RQLWRU LQVWUXPHQWV DQG QDYDLGV UDZ GDWD DV
DSSOLFDEOH x ([SHFWHG DUULYDO URXWH 67$5 RU UDGDU
YHFWRUV
x 8VH DOO DYDLODEOH LQIRUPDWLRQ LH FRFNSLW
GLVSOD\V QDYDLGV UDZ GDWD DQG FKDUWV DQG
x $OWLPHWHU VHWWLQJ 41+ RU 4)( DV UHTXLUHG
x 5HTXHVW FRQILUPDWLRQ RU FODULILFDWLRQ IURP $7& LI DQG
DQ\ GRXEW H[LVWV DERXW WHUUDLQ FOHDUDQFH
SDUWLFXODUO\ ZKHQ EHLQJ UDGDU YHFWRUHG x 7UDQVLWLRQ OHYHO XQOHVV VWDQGDUG IRU WKH FRXQWU\
RU IRU WKH DLUSRUW
'HVFHQW 3UHSDUDWLRQ ± $SSURDFK DQG *R

$SSURDFK &KDUW
DURXQG %ULHILQJ
5HYLHZ DQG GLVFXVV WKH IROORZLQJ WHUUDLQ

$ WKRURXJK EULHILQJ VKRXOG EH SHUIRUPHG
DZDUHQHVVLWHPV XVLQJ WKH DSSURDFK FKDUW DQG WKH
UHJDUGOHVV RI
)061' DV DSSOLFDEOH
x +RZ IDPLOLDU WKH GHVWLQDWLRQ DLUSRUW DQG WKH
x 'HVLJQDWHG UXQZD\ DQG DSSURDFK W\SH
DSSURDFK PD\ EH RU
x &KDUW LQGH[ QXPEHU DQG GDWH
x +RZ RIWHQ WKH FUHZPHPEHUV KDYH IORZQ
WRJHWKHU x 0LQLPXP 6DIHW\ $OWLWXGH 06$ UHIHUHQFH
SRLQW VHFWRUV DQG DOWLWXGHV
7KH EULHILQJ VKRXOG KHOS WKH 3) JLYLQJ WKH EULHILQJ
x /HWGRZQ QDYDLG IUHTXHQF\ DQG LGHQWLILFDWLRQ
DQG WKH 31) UHFHLYLQJ DQG DFNQRZOHGJLQJ WKH
FRQILUP WKH FRUUHFW QDYDLG VHWXS
EULHILQJ WR UHDFK DQG VKDUH D FRPPRQ PHQWDO
PRGHO RI WKH DSSURDFK x $LUSRUW HOHYDWLRQ
,Q KLOO\ RU PRXQWDLQRXV DUHDV WKH EULHILQJ VKRXOG x $SSURDFK WUDQVLWLRQV IL[HV KROGLQJ SDWWHUQ
LQFOXGH WKH IROORZLQJ WHUUDLQDZDUHQHVVLWHPV DOWLWXGH DQG VSHHG FRQVWUDLQWVUHVWULFWLRQV

UHTXLUHG QDYDLGV VHWXS
x 'HVFHQW SURILOH DQG GHVFHQW PDQDJHPHQW x ,QLWLDO DSSURDFK IL[ ,$) DQG LQWHUPHGLDWH
DSSURDFK IL[ ,) DV DSSOLFDEOH SRVLWLRQV DQG
x 7HUUDLQ IHDWXUHV FURVVLQJ DOWLWXGHV
x )LQDO DSSURDFK FRXUVH DQG OHDGLQ UDGLDO

x (QHUJ\ PDQDJHPHQW LH GHFHOHUDWLRQ DQG
FRQILJXUDWLRQ PDQDJHPHQW DQG x 7HUUDLQ IHDWXUHV ORFDWLRQ DQG HOHYDWLRQ RI
KD]DUGRXV WHUUDLQ RU PDQPDGH REVWDFOHV
x 2WKHU DSSURDFK KD]DUGV HJ EODFN KROH
x $SSURDFK SURILOH YLHZ
)LQDO DSSURDFK IL[ )$)

7KH IOLJKW PDQDJHPHQW V\VWHP )06 RSHUDWLRQDO
SDJHV DQG WKH 1' VKRXOG EH XVHG WR JXLGH DQG )LQDO GHVFHQW SRLQW LI GLIIHUHQW IURP )$)
LOOXVWUDWH WKH EULHILQJ DQG WR FRQILUP WKH YDULRXV
GDWD HQWULHV 9LVXDO GHVFHQWGHFLVLRQ SRLQW 9'3
0LVVHGDSSURDFK SRLQW 0$3

$Q H[SDQGHG UHYLHZ RI WKH WHUUDLQDZDUHQHVVLWHPV
WR EH LQFOXGHG LQ WKH DSSURDFK EULHILQJ ± DV SUDFWLFDO 7\SLFDO YHUWLFDO VSHHG DW H[SHFWHG ILQDO
DQG DSSURSULDWH IRU WKH FRQGLWLRQV RI WKH IOLJKW ± LV DSSURDFK JURXQG VSHHG *6 DQG
SURYLGHG KHUHDIWHU
7RXFKGRZQ ]RQH HOHYDWLRQ 7'=(

3DJH
x 0LVVHG DSSURDFK ,Q ORZ WHPSHUDWXUH WKH WUXH DOWLWXGH LV ORZHU WKDQ

WKH LQGLFDWHG DOWLWXGH UHVXOWLQJ LQ D ORZHUWKDQ
/DWHUDO DQG YHUWLFDO QDYLJDWLRQ DQG
DQWLFLSDWHG WHUUDLQ VHSDUDWLRQ DQG LQ D SRVVLEOH
6LJQLILFDQW WHUUDLQ RU REVWDFOHV WHUUDLQ FOHDUDQFH KD]DUG DV LOOXVWUDWHG E\ )LJXUH
IRU D ± GHJUHH &HOVLXV 2$7
/RZ 2$7 2SHUDWLRQ

7UXH
:KHQ RSHUDWLQJ ZLWK D ORZ 2$7 WHPSHUDWXUH $OWLWXGH
FRUUHFWLRQV RQ WKH LQGLFDWHG DOWLWXGH QHHG WR EH
*LYHQ $WPRVSKHULF 3UHVVXUH
DSSOLHG WR DOO WKH IROORZLQJ SXEOLVKHG DOWLWXGHV SUHVVXUH DOWLWXGH
x 0($ 06$ ,QGLFDWHG

$OWLWXGH
x 7UDQVLWLRQ URXWHV DOWLWXGH IW
IW
x 3URFHGXUH WXUQ DOWLWXGH DV DSSOLFDEOH
IW IW
IW
x )$) DOWLWXGH
x 6WHSGRZQ DOWLWXGHV DQG 0'$+ GXULQJ D QRQ

,/6 DSSURDFK
+LJK 2$7 6WDQGDUG 2$7 /RZ 2$7
x 20 FURVVLQJ DOWLWXGH GXULQJ DQ ,/6 DSSURDFK

DQG )LJXUH
x :D\SRLQWV FURVVLQJ DOWLWXGHV GXULQJ D *36

(IIHFW RI 2$7 RQ 7UXH $OWLWXGH
DSSURDFK IORZQ ZLWK EDURPHWULF YHUWLFDO
QDYLJDWLRQ
)O\LQJ LQWR ORZ WHPSHUDWXUH KDV WKH VDPH HIIHFW DV
IO\LQJ LQWR D ORZSUHVVXUH DUHD WKH DLUFUDIW LV ORZHU
,Q D VWDQGDUG DWPRVSKHUH WKH LQGLFDWHG DOWLWXGH WKDQ WKH DOWLPHWHU LQGLFDWHV
UHIOHFWV WKH WUXH DOWLWXGH DERYH WKH PHDQ VHD OHYHO
06/ DQG WKHUHIRUH SURYLGHV D UHOLDEOH LQGLFDWLRQ RI 7KHVH HIIHFWV DUH VXPPDUL]HG DQG LOOXVWUDWHG LQ
WHUUDLQ VHSDUDWLRQ 7DEOH IHDWXULQJ D ZHOONQRZQ DYLDWLRQ JROGHQ UXOH
:KHQ 2$7 LV VLJQLILFDQWO\ ZDUPHU RU FROGHU WKDQ WKH
VWDQGDUG WHPSHUDWXUH WKH LQGLFDWHG DOWLWXGH LV )URP 7R
KLJKHU RU ORZHU WKDQ WKH WUXH DOWLWXGH DV LOOXVWUDWHG
E\ )LJXUH
$WPRVSKHULF +LJK /RZ /RRN
3UHVVXUH
RXW
EHORZ
2$7 :DUP &ROG
7DEOH
$WPRVSKHULF 3UHVVXUH DQG 7HPSHUDWXUH (IIHFWV
RQ 7UXH $OWLWXGH

3DJH
$LUSRUW FKDUWV
0RQLWRU WKH FRUUHFW VHTXHQFLQJ RI WKH IOLJKW SODQ DW
HDFK ZD\SRLQW DQG WKH FRUUHFW JXLGDQFH DIWHU
5HYLHZ DQG GLVFXVV WKH IROORZLQJ WHUUDLQ
VHTXHQFLQJ WKH ZD\SRLQW SDUWLFXODUO\ DIWHU D IOLJKW
DZDUHQHVVLWHPV XVLQJ WKH DLUSRUW FKDUWV
SODQ UHYLVLRQ RU DIWHU SHUIRUPLQJ D ',5 72
x $SSURDFK DQG UXQZD\ OLJKWLQJ DQG RWKHU x (QVXUH WKDW WKH GLUHFWLRQRIWXUQ DQG WKH 72
H[SHFWHG YLVXDO UHIHUHQFHV DQG ZD\SRLQW DUH LQ DFFRUGDQFH ZLWK WKH 6,'
x 6SHFLILF KD]DUGV VXFK DV PDQPDGH REVWDFOHV x ,Q FDVH RI LQFRUUHFW IOLJKW SODQ VHTXHQFLQJ
DV DSSOLFDEOH DQGRU RI LQFRUUHFW ODWHUDO JXLGDQFH FUHZ VKRXOG
EH DOHUW WR SHUIRUP D ',5 72 >DQ DSSURSULDWH
ZD\SRLQW@ RU WR UHYHUW WR VHOHFWHG ODWHUDO
,I DQRWKHU DLUSRUW LV ORFDWHG LQ WKH FORVH YLFLQLW\ RI WKH
QDYLJDWLRQ
GHVWLQDWLRQ DLUSRUW UHOHYDQW GHWDLOV RU SURFHGXUHV
VKRXOG EH GLVFXVVHG IRU DZDUHQHVV SXUSRVHV
&KDQJHV LQ FOHDUDQFHV VKRXOG EH IXOO\ XQGHUVWRRG
EHIRUH EHLQJ DFFHSWHG DQG LPSOHPHQWHG
8VH RI DXWRPDWLRQ
)RU H[DPSOH EHLQJ FOHDUHG WR D ORZHU DOWLWXGH
'LVFXVV WKH LQWHQGHG XVH RI DXWRPDWLRQ IRU YHUWLFDO VKRXOG QHYHU EH XQGHUVWRRG DV D FOHDUDQFH WR
DQG ODWHUDO QDYLJDWLRQ GHVFHQG SUHPDWXUHO\ EHORZ WKH FKDUWHG VHFWRU RU
VHJPHQW PLQLPXP VDIH DOWLWXGH
x 8VH RI )06PDQDJHG JXLGDQFH RU VHOHFWHG
PRGHV DQG
:KHQ EHLQJ UDGDU YHFWRUHG PDNH VXUH WKDW
x 8VH RI SUHFLVLRQ DSSURDFK FRQVWDQWDQJOH RU

x 7KH FRQWUROOHU KDV FOHDUO\ LGHQWLILHG \RXU UDGDU
VWHSGRZQ QRQSUHFLVLRQ DSSURDFK DV UHTXLUHG
UHWXUQ E\ VWDWLQJ ³UDGDU FRQWDFW´
x 7KH FRQWUROOHU FDQ UHDG REVWDFOH FOHDUDQFH

'HVFHQW 0DQDJHPHQW DQG 0RQLWRULQJ DOWLWXGHV RQ KLV RU KHU UDGDU VFRSH DZDUHQHVV
RI PLQLPXP YHFWRULQJ DOWLWXGH DQG UHVSRQVLELOLW\
%HIRUH HQWHULQJ WKH WHUPLQDO DUHD 70$ FKHFN WKH IRU WHUUDLQ VHSDUDWLRQ
)06 QDYLJDWLRQ DFFXUDF\ XVLQJ QDYDLGV UDZ GDWD
x 7KH FRQWUROOHU GRHV QRW IRUJHW WKDW \RX DUH RQ D
DJDLQVW WKH DSSOLFDEOH FULWHULD IRU WHUPLQDO RU
UDGDU YHFWRU KHDGLQJ WRZDUG KLJK RU ULVLQJ
DSSURDFK QDYLJDWLRQ
WHUUDLQ
,I WKH DFFXUDF\ FULWHULD IRU ODWHUDO )06 QDYLJDWLRQ LQ x 7KH SLORW FRQWUROOHU WZRZD\ FRPPXQLFDWLRQ
WHUPLQDO DUHD DQGRU IRU DSSURDFK DUH QRW PHW UHPDLQ HIIHFWLYH DW DOO WLPHV
UHYHUW WR D VHOHFWHG ODWHUDO PRGH ZLWK 1' LQ 526(
RU $5& PRGH
x <RX PDLQWDLQ \RXU RZQ YHUWLFDO DQG KRUL]RQWDO
VLWXDWLRQDO DZDUHQHVV DQG
,I IO\LQJ ZLWK ,56 21/< QDYLJDWLRQ GR QRW GHVFHQG x <RX UHTXHVW FRQILUPDWLRQ RU FODULILFDWLRQ IURP
EHORZ WKH VHFWRU 06$ ZLWKRXW SRVLWLYH FRQILUPDWLRQ $7& ZLWKRXW GHOD\ DQG LQ FOHDU WHUPV LQ FDVH RI
RI WKH DLUFUDIW SRVLWLRQ XVLQJ QDYDLGV UDZ GDWD DQ\ GRXEW
7R SUHYHQW DQ H[FHVVLYH WHUUDLQFORVXUHUDWH

6WDQGDUG $UULYDO 67$5 FRQVLGHU D PD[LPXP YHUWLFDO VSHHG DQG UHGXFH WKLV
PD[LPXP OLPLW ZLWK GHFUHDVLQJ DOWLWXGH HJ GR QRW
%H DZDUH RI ZKHWKHU RU QRW WKH DUULYDO LV UDGDU H[FHHG ± IWPQ ZKHQ EHORZ IW $*/ DQG
PRQLWRUHG E\ WKH $7& ± IWPQ ZKHQ EHORZ IW $*/
0DLQWDLQLQJ D VWHULOH FRFNSLW ZKHQ EHORZ IW RU 'XULQJ WKH ILQDO DSSURDFK VHJPHQW WKH SULPDU\
EHORZ WKH VHFWRU PLQLPXP VDIH DOWLWXGH 06$ DWWHQWLRQ RI 3) DQG 31) SLORWV VKRXOG EH GLUHFWHG WR
SDUWLFXODUO\ DW QLJKW RU LQ LQVWUXPHQW PHWHRURORJLFDO DQ\ UHTXLUHG DOWLWXGH FRQVWUDLQW RU DOWLWXGH GLVWDQFH
FRQGLWLRQV ,0& FKHFN SULRU WR UHDFKLQJ WKH 0'$+ RU '$+

3DJH
5DGLR DOWLPHWHU UHDGLQJV EHORZ REVWDFOH FOHDUDQFH ODFN RI *3:6 RU 7$:6

OHYHOV OLVWHG EHORZ VKRXOG SURPSW DQ LPPHGLDWH
DOWLWXGH DQG SRVLWLRQ FKHFN x $LUSRUW HQYLURQPHQW
x ,QLWLDO DSSURDFK IURP ,$) WR ,) IW $*/ 1LJKW ³EODFN KROH´ DQGRU ULVLQJVORSLQJ
WHUUDLQ DORQJ WKH DSSURDFK SDWK
x ,QWHUPHGLDWH DSSURDFK IURP ,) WR )$) RU DW
PLQLPXP UDGDU YHFWRULQJ DOWLWXGH IW $*/
x $LUSRUW HTXLSPHQW
x )LQDO DSSURDFK QRQSUHFLVLRQ DSSURDFKHV
LQERXQG RI )$) IW $*/
/DFN RI RU UHVWULFWHG UDGDU FRYHUDJH
/DFN RI SUHFLVLRQ DSSURDFK DQGRU ODFN RI

8QOHVV WKH DLUSRUW IHDWXUHV KLJK FORVHLQ WHUUDLQ 9$6,3$3, DQG
WKH 5$ UHDGLQJ KHLJKW $*/ VKRXOG UHDVRQDEO\
DJUHH ZLWK WKH KHLJKW DERYH DLUILHOG HOHYDWLRQ /LPLWHG DQGRU ORZLQWHQVLW\ DSSURDFK DQG
REWDLQHG E\ GLUHFW UHDGLQJ RI WKH DOWLPHWHU LI XVLQJ UXQZD\ OLJKWLQJ
4)( RU E\ FRPSXWDWLRQ LI XVLQJ 41+
x 1DYLJDWLRQ FKDUWV
3UHSDUHGQHVV WR *RDURXQG /DFN RI SXEOLVKHG GHSDUWXUH DQGRU

DSSURDFK SURFHGXUHV
,Q ,0& RU DW QLJKW LPPHGLDWHO\ UHVSRQG WR DQ\
*3:6 7$:6 ZDUQLQJ
/DFN RI SXEOLVKHG LQIRUPDWLRQ RQ PLQLPXP
UDGDU YHFWRULQJ DOWLWXGHV DQG
%H SUHSDUHG DQG PLQGHG WR JRDURXQG LI WKH $EVHQFH RQ FRORUHG WHUUDLQ FRQWRXUV RQ

FRQGLWLRQV IRU D VDIH DSSURDFK DQG ODQGLQJ DUH QRW DSSURDFK FKDUWV
PHW HJ XQVWDELOL]HG DSSURDFK DW RU EHORZ WKH
DSSURDFK JDWH VWDELOL]DWLRQ KHLJKW x 7UDLQLQJ
&LUFOLQJ $SSURDFKHV $EVHQFH RI DUHD DQGRU DLUSRUW

IDPLOLDUL]DWLRQ WUDLQLQJ DQG
:KHQ SHUIRUPLQJ D FLUFOLQJ DSSURDFK EH DZDUH RI

,QDGHTXDWH NQRZOHGJH RI DSSOLFDEOH
DQG VWD\ ZLWKLQ WKH DSSOLFDEOH REVWDFOH FOHDUDQFH
REVWDFOH FOHDUDQFH DQGRU VHFWRU PLQLPXP
SURWHFWHG DUHD
YHFWRULQJ DOWLWXGH
x
)DFWRUV $IIHFWLQJ 7HUUDLQ $ZDUHQHVV 6WDQGDUG RSHUDWLQJ SURFHGXUHV
,QDGHTXDWH EULHILQJV
7KH IROORZLQJ IDFWRUV RIWHQ DUH FLWHG DV DIIHFWLQJ WKH
0RQLWRULQJ HUURUV LH LQDELOLW\ WR PRQLWRU
KRUL]RQWDO RU ODWHUDO VLWXDWLRQDO DZDUHQHVV DQG
WKH DLUFUDIW WUDMHFWRU\ DQG LQVWUXPHQWV ZKLOH
WKHUHIRUH WKH WHUUDLQ DZDUHQHVV
SHUIRUPLQJ )06 HQWULHV RU ZKLOH EHLQJ
LQWHUUXSWHG RU GLVWUDFWHG
7KHVH IDFWRUV VKRXOG EH DGGUHVVHG E\ GHYHORSLQJ
FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI ,QDGHTXDWH PRQLWRULQJ RI IOLJKW SURJUHVV
GHIHQVH LQLWLDWLQJ DSSURSULDWH DFWLRQV ZLWK VWDWH LH EHLQJ EHKLQG WKH DLUFUDIW
DJHQFLHV RSHUDWLRQDO DXWKRULWLHV DQG VHUYLFH
SURYLGHUV
,QFRUUHFW XVH RI RU LQWHUDFWLRQ ZLWK
DXWRPDWLRQ
x $LUFUDIW HTXLSPHQW
2PLVVLRQ RI D QRUPDO FKHFNOLVW RU SDUW RI D
/DFN RI QDYLJDWLRQ GLVSOD\ ZLWK WHUUDLQ QRUPDO FKHFNOLVW XVXDOO\ EHFDXVH RI
GLVSOD\ RU UDGDU GLVSOD\ ZLWK PDSSLQJ LQWHUUXSWLRQ RU GLVWUDFWLRQ DQGRU
IXQFWLRQ
'HOLEHUDWH RU LQDGYHUWHQW QRQDGKHUHQFH WR
ODFN RI DUHD QDYLJDWLRQ 51$9 FDSDELOLW\ SURFHGXUHV

3DJH
x 3LORW&RQWUROOHU &RPPXQLFDWLRQV 7R UHGXFH DOWLPHWHUVHWWLQJ HUURUV IOLJKW FUHZ

VKRXOG
2PLVVLRQ RI SRVLWLRQ UHSRUW DW ILUVW UDGLR
FRQWDFW LQ DQ DUHD ZLWKRXW UDGDU FRYHUDJH
x %H DZDUH RI DOWLPHWHU VHWWLQJ FKDQJHV GXH WR
LH UHGXFLQJ WKH FRQWUROOHU¶V VLWXDWLRQDO
SUHYDLOLQJ ZHDWKHU FRQGLWLRQV HJ H[WUHPH FROG
DZDUHQHVV
RU ZDUP IURQWV VWHHS IURQWDO VXUIDFHV VHPL
%UHDNGRZQ LQ SLORW FRQWUROOHU RU LQWUDFUHZ SHUPDQHQW RU VHDVRQDO ORZ SUHVVXUH DUHDV
FRPPXQLFDWLRQV HJ UHDGEDFNKHDUEDFN
HUURUV IDLOXUH WR UHVROYH GRXEWV RU x %H DZDUH RI WKH DOWLPHWHU VHWWLQJ XQLW LQ XVH DW
DPELJXLWLHV XVH RI QRQVWDQGDUG WKH GHVWLQDWLRQ DLUSRUW
SKUDVHRORJ\ DQGRU
x %H DZDUH RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ

$FFHSWLQJ DQ DPHQGHG FOHDUDQFH ZLWKRXW
XVLQJ WZR LQGHSHQGHQW VRXUFHV IRU FURVVFKHFN
SULRU HYDOXDWLRQ
HJ 0(7$5 DQG $7,6 PHVVDJHV
x +XPDQ )DFWRUV DQG &50

x (QVXUH HIIHFWLYH FURVVFKHFN DQG EDFNXS
,QFRUUHFW &50 SUDFWLFHV DEVHQFH RI
FURVVFKHFN DQG EDFNXS IRU $3 PRGH x $GKHUH WR 623V IRU
VHOHFWLRQV DQG $3)06 GDWD HQWULHV ODWH
UHFRJQLWLRQ RI PRQLWRULQJ HUURUV
UHVHW RI DOWLPHWHUV LQ FOLPE DQG GHVFHQW SHU
)&20 RU SHU FRPSDQ\¶ 623V
,QDGHTXDWH GHFLVLRQPDNLQJ
XVH RI VWDQGE\ DOWLPHWHU WR FURVVFKHFN PDLQ
)DLOXUH WR UHVROYH D GRXEW RU FRQIXVLRQ DOWLPHWHUV
)DWLJXH DOWLWXGH FDOORXWV
&RPSODFHQF\ 5$ FDOORXWV DQG
6SDWLDO GLVRULHQWDWLRQ DQGRU VHWWLQJ RI EDURDOWLPHWHU EXJ DQG 5$ '+
9LVXDO LOOXVLRQV
x &URVVFKHFN WKDW WKH FOHDUHG DVVLJQHG DOWLWXGH
LV DERYH WKH VHFWRU PLQLPXP VDIH DOWLWXGH
6XPPDU\ RI NH\ SRLQWV XQOHVV FUHZ LV DZDUH RI DSSOLFDEOH PLQLPXP

YHFWRULQJ DOWLWXGH IRU WKH VHFWRU
7KH IROORZLQJ NH\ SRLQWV DQG UHFRPPHQGDWLRQV

VKRXOG EH XVHG LQ WKH GHYHORSPHQW RI FRPSDQ\
SUHYHQWLRQ VWUDWHJLHV DQG DFWLRQV HQKDQFLQJ WHUUDLQ
)OLJKW SURJUHVV PRQLWRULQJ
DZDUHQHVV
)OLJKW PRQLWRULQJ IRU WHUUDLQ DZDUHQHVV LQFOXGHV
$SSURDFK &KDUWV x 0RQLWRULQJ )06 JXLGDQFH DQG )06 QDYLJDWLRQ

DFFXUDF\
3URYLGLQJ IOLJKW FUHZV ZLWK GHSDUWXUH DQG DSSURDFK

FKDUWV IHDWXULQJ WHUUDLQ ZLWK FRORU VKDGHG FRQWRXUV
x 0RQLWRULQJ LQVWUXPHQWV DQG QDYDLGV UDZ GDWD
x 8VLQJ DOO DYDLODEOH LQIRUPDWLRQ DYDLODEOH LH
$OWLPHWHU VHWWLQJ FRFNSLW GLVSOD\V QDYDLGV UDZ GDWD DQG FKDUWV

DQG
3URPRWLQJ VWULFW DGKHUHQFH WR DGHTXDWH 623V WR

UHGXFH DOWLPHWHUVHWWLQJ HUURUV DQG IRU RSWLPXP XVH x 5HTXHVWLQJ FRQILUPDWLRQ RU FODULILFDWLRQ IURP
RI EDURDOWLPHWHU EXJ DQG UDGLRDOWLPHWHU '+ $7& LI DQ\ GRXEW H[LVWV DERXW WHUUDLQ FOHDUDQFH
SDUWLFXODUO\ ZKHQ EHLQJ UDGDU YHFWRUHG

3DJH
$SSURDFK DQG JRDURXQG EULHILQJ 7KH UROH DQG WDVNV RI WKH 31) VKRXOG EH
HPSKDVL]HG E\ KLJKOLJKWLQJ LV UROH DV SLORW
7KH IROORZLQJ WHUUDLQ DZDUHQHVV FULWLFDO LWHPV VKRXOG PRQLWRULQJ
EH LQFOXGHG LQ WKH DSSURDFK DQG JRDURXQG EULHILQJ
x 0LQLPXP VDIHW\ DOWLWXGHV

$ZDUHQHVV RI RWKHU DSSURDFK KD]DUGV
x 7HUUDLQ DQG PDQPDGH REVWDFOHV IHDWXUHV
3LORWV VKRXOG UHFHLYH HGXFDWLRQ DQG WUDLQLQJ RQ
x $SSOLFDEOH DSSURDFK PLQLPXPV YLVLELOLW\ RU YLVXDO LOOXVLRQV DQG VSDWLDO GLVRULHQWDWLRQ
595 FHLOLQJ DV DSSOLFDEOH
x $SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH

x )LQDO DSSURDFK GHVFHQW IOLJKW SDWK DQJOH DQG
YHUWLFDO VSHHG DQG 7KH IROORZLQJ %ULHILQJ 1RWHV SURYLGH H[SDQGHG
LQIRUPDWLRQ RQ VXEMHFWV DQG PDWWHUV UHODWHG WR
x *RDURXQG DOWLWXGH DQG PLVVHGDSSURDFK LQLWLDO
WHUUDLQ DZDUHQHVV
VWHSV
3UHSDUHGQHVV DQG FRPPLWPHQW IRU JRDURXQG x ² 2SWLPXP 8VH RI $XWRPDWLRQ
7KH IROORZLQJ VKRXOG EH VWUHVVHG x 2SHUDWLRQV *ROGHQ 5XOHV
x %HLQJ FRPPLWWHG IRU DQ LPPHGLDWH UHVSRQVH WR x ² 6WDQGDUG &DOOV

DQ\ *3:6 7$:6 ZDUQLQJ SDUWLFXODUO\ DW
QLJKW RU LQ ,0& DQG
x ² 8VH RI 1RUPDO &KHFNOLVWV
x %HLQJ SUHSDUHG DQG PLQGHG WR JRDURXQG x ² $SSURDFK DQG *RDURXQG %ULHILQJ
x ² (IIHFWLYH &UHZ $7&
3LORW FRQWUROOHU FRPPXQLFDWLRQV

&RPPXQLFDWLRQV
x ² ,QWUD&RFNSLW &RPPXQLFDWLRQV ²

$Q DZDUHQHVV DQG WUDLQLQJ SURJUDP WR LPSURYH SLORW
0DQDJLQJ LQWHUUXSWLRQV DQG
FRQWUROOHU FRPPXQLFDWLRQV VKRXOG EH GHYHORSHG
EDVHG RQ WKH FRQWHQWV RI %ULHILQJ 1RWH 'LVWUDFWLRQV
² (IIHFWLYH 3LORW&RQWUROOHU &RPPXQLFDWLRQV

x ² $OWLWXGH GHYLDWLRQV
x ² %HLQJ 3UHSDUHG IRU *RDURXQG

&UHZ FRRUGLQDWLRQ FURVVFKHFN DQG EDFNXS
x ² 7HUUDLQ$YRLGDQFH *3:6 3XOOXS
7KH IROORZLQJ WHUUDLQDZDUHQHVV HOHPHQWV RI DQ 0DQHXYHU
HIIHFWLYH FURVVFKHFN DQG EDFNXS VKRXOG EH
HPSKDVL]HG
x $VVHUWLYH FKDOOHQJLQJ E\ 31) LH PDLQWDLQLQJ
VLWXDWLRQDO DZDUHQHVV DQG YRLFLQJ DQ\ FRQFHUQ 7KH IROORZLQJ UHJXODWRU\ UHIHUHQFHV DUH SURYLGHG WR
DERXW WKH VDIH SURJUHVV RI WKH IOLJKW DVVLVW WKH UHDGHU LQ D TXLFN DQG HDV\ UHIHUHQFH WR
WKH UHODWHG UHJXODWRU\ PDWHULDO

x 6WDQGDUG FDOOV SDUWLFXODUO\ DOWLWXGH FDOOV
x ,&$2 3$16236 9ROXPH , 3DUW 9, ±
$OWLPHWHU VHWWLQJ SURFHGXUHV &KDSWHU ± /RZ
x ([FHVVLYHSDUDPHWHUGHYLDWLRQ FDOORXWV DQG
2$7 RSHUDWLRQ $OWLWXGH FRUUHFWLRQV
x 7DVN VKDULQJ DQG VWDQGDUG FDOOV IRU WKH x )$5 ± 5HVSRQVLELOLW\ DQG DXWKRULW\ RI WKH
DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV SLORW LQ FRPPDQG

3DJH
x )$5 ± 0LQLPXP VDIH DOWLWXGHV *HQHUDO 2WKHU 5HIHUHQFHV

x )$5 ± $OWLPHWHU VHWWLQJV 7KH IROORZLQJ )OLJKW 6DIHW\ )RXQGDWLRQ UHIHUHQFHV
FDQ EH XVHG WR IXUWKHU LOOXVWUDWH DQG FRPSOHPHQW WKH
x )$5 ± &RPSOLDQFH ZLWK $7& FOHDUDQFHV LQIRUPDWLRQ FRQWDLQHG LQ WKLV %ULHILQJ 1RWH
DQG LQVWUXFWLRQV
x &),7 (GXFDWLRQ DQG 7UDLQLQJ $LG
x )$5 ± %DVLF 9)5 ZHDWKHU PLQLPXPV x &),7 &KHFNOLVW ± (YDOXDWH WKH 5LVN DQG 7DNH
$FWLRQ
x )$5 ± 6SHFLDO 9)5 ZHDWKHU PLQLPXPV

x $/$5 5LVN $ZDUHQHVV 7RRO&KHFNOLVW
x )$5 ± 7DNHRII DQG ODQGLQJ XQGHU ,)5 x $/$5 5LVN 5HGXFWLRQ 3ODQQLQJ *XLGH
x )OLJKW 6DIHW\ 'LJHVW ± .LOOHUV LQ $YLDWLRQ ±

x )$5 ± ,)5 RSHUDWLRQV
1RY)HE
7ZRZD\ FRPPXQLFDWLRQV IDLOXUH
x )$5 ± 6WDQGDUG ,QVWUXPHQW $SSURDFK

3URFHGXUHV ± 7HUPLQDO ,QVWUXPHQW $SSURDFK
3URFHGXUHV 7(536
x )$5 RU ± $LUSRUWV 5HTXLUHG

GDWD
x )$5 ± 0DQXDO 5HTXLUHPHQWV ±

2SHUDWLRQV 0DQXDO ± &RQWHQWV
x )$5 ± &RFNSLW FKHFN SURFHGXUH
x )$5 ± *URXQG SUR[LPLW\ ZDUQLQJ ±

JOLGH VORSH GHYLDWLRQ DOHUWLQJ V\VWHP
x )$5 DQG ± 5RXWH 6SHFLDO

DUHDV DQG DLUSRUWV TXDOLILFDWLRQ IRU SLORW LQ 3KRWR FUHGLW 7$.(2)) 7KH 6ZLVV 3URIHVVLRQDO 3LORWV¶ $VVRFLDWLRQ 0DJD]LQH
FRPPDQG 3,&
x )$5 ± )OLJKW FUHZPHPEHU GXWLHV

VWHULOH FRFNSLW UXOH

3DJH
$SSURDFKDQGODQGLQJ%ULHILQJ1RWH
9LVXDO,OOXVLRQV$ZDUHQHVV
,QWURGXFWLRQ
9LVXDO LOOXVLRQV WDNH SODFH ZKHQ FRQGLWLRQV PRGLI\ )DFWRU RI (YHQWV

WKH IOLJKW FUHZ SHUFHSWLRQ RI WKH HQYLURQPHQW UHODWLYH
WR KLV KHU H[SHFWDWLRQV
9LVXDO LOOXVLRQV PD\ UHVXOW LQ ODQGLQJ VKRUW RI WKH 1LJKW WLPH
UXQZD\ KDUG ODQGLQJ RU UXQZD\ RYHUUXQ EXW DOVR
FDXVH VSDWLDO GLVRULHQWDWLRQ DQG ORVV RI FRQWURO /RZ YLVLELOLW\
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI ,0&
x )DFWRUV DQG FRQGLWLRQV WKDW PD\ FDXVH YLVXDO
LOOXVLRQV 'DUNQHVV RU WZLOLJKW
x +RZ YLVXDO LOOXVLRQV DIIHFW WKH SLORW¶V SHUFHSWLRQ
RI WKH DLUSRUW UXQZD\ HQYLURQPHQW DQG UXQZD\ 1RQ,/6 DSSURDFK
DQG
3UHFLSLWDWLRQ UDLQ RU VQRZ
x +RZ WR OHVVHQ WKH HIIHFWV RI YLVXDO LOOXVLRQV E\
LPSOHPHQWLQJ UHODWHG SUHYHQWLRQ VWUDWHJLHV DQG 9LVXDO DSSURDFK
OLQHVRIGHIHQVH LQ WUDLQLQJ DQG OLQH RSHUDWLRQ
6WDWLVWLFDO 'DWD
9LVXDO LOOXVLRQV RU VSDWLDO
GLVRULHQWDWLRQ
9LVXDO DSSURDFKHV DUH D FDXVDO IDFWRU LQ RI DOO
DSSURDFKDQGODQGLQJ DFFLGHQWV DQG LQ RI IDWDO $EVHQFH RI
DFFLGHQWV OHWGRZQ QDYDLG
9LVXDO DSSURDFKHV DW QLJKW SUHVHQW D JUHDWHU DSSURDFKUXQZD\ OLJKWLQJ
H[SRVXUH EHFDXVH RI UHGXFHG YLVXDO FXHV 9$6, 3$3,
LQFUHDVHG OLNHOLKRRG RI YLVXDO LOOXVLRQV DQG ULVN RI
VSDWLDO GLVRULHQWDWLRQ
/RZ YLVLELOLW\ DQGRU SUHFLSLWDWLRQV DUH D 7DEOH
FLUFXPVWDQWLDO IDFWRU LQ PRUH WKDQ RI
DSSURDFKDQGODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH 9LVXDO )DFWRUV LQ $SSURDFKDQG/DQGLQJ (YHQWV
LQYROYLQJ &),7

3DJH
9LVXDO ,OOXVLRQV ± )DFWRUV DQG &RQGLWLRQV 9LVXDO LOOXVLRQV DIIHFW SHUFHSWLRQ RI KHLJKWV
GLVWDQFHV DQGRU LQWHUFHSW DQJOHV
7KH IROORZLQJ IDFWRUV DQG FRQGLWLRQV DIIHFW WKH IOLJKW
FUHZ DELOLW\ WR DFFXUDWHO\ SHUFHLYH WKH HQYLURQPHQW 9LVXDO LOOXVLRQV DUH PRVW FULWLFDO ZKHQ WUDQVLWLRQLQJ
UHVXOWLQJ LQ YLVXDO LOOXVLRQV IURP ,0& DQG LQVWUXPHQW UHIHUHQFHV WR 90& DQG
YLVXDO UHIHUHQFHV
$LUSRUW HQYLURQPHQW
9LVXDO LOOXVLRQV VXFK DV WKH EODFNKROH HIIHFW DIIHFW
x *URXQG WH[WXUH DQG IHDWXUHV WKH IOLJKW FUHZ YHUWLFDO DQG KRUL]RQWDO VLWXDWLRQDO
DZDUHQHVV SDUWLFXODUO\ GXULQJ WKH EDVH OHJ DQG
x 2IIDLUSRUW OLJKW SDWWHUQV VXFK DV EULJKWO\ OLJKWHG ZKHQ WXUQLQJ ILQDO DV DSSOLFDEOH DQG GXULQJ WKH
SDUNLQJ ORWV RU VWUHHWV ILQDO DSSURDFK
x ³%ODFN KROH´ DORQJ WKH ILQDO DSSURDFK IOLJKW SDWK

9LVXDO LOOXVLRQV XVXDOO\ LQGXFH FUHZ LQSXWV
DQGRU
FRUUHFWLRQV WKDW FDXVH WKH DLUFUDIW WR GHYLDWH IURP
x 8SKLOO RU GRZQKLOO VORSLQJ WHUUDLQ EHIRUH WKH WKH RULJLQDO DQG LQWHQGHG YHUWLFDO RU ODWHUDO IOLJKW
UXQZD\ WKUHVKROG RU LQ WKH DSSURDFK SDWK SDWK
HQYLURQPHQW
9LVXDO LOOXVLRQV FDQ DIIHFW WKH GHFLVLRQ DERXW ZKHQ
DQG KRZ IDVW WR GHVFHQG IURP WKH 0'$+
5XQZD\ HQYLURQPHQW
x 5XQZD\ GLPHQVLRQV DVSHFW UDWLR 7KH IROORZLQJ SDUDJUDSK SURYLGHV DQ H[SDQGHG

RYHUYLHZ RI DOO WKH IDFWRUV DQG FRQGLWLRQV FUHDWLQJ
x 5XQZD\ XSKLOO RU GRZQKLOO VORSH YLVXDO LOOXVLRQV WR GLVFXVV KRZ HDFK IDFWRU RU
FRQGLWLRQ PD\ DIIHFW WKH SLORW SHUFHSWLRQ RI
x 7HUUDLQ GURSRII DW WKH DSSURDFK HQG RI WKH
UXQZD\
x 7KH DLUSRUW DQG UXQZD\ HQYLURQPHQW
x $SSURDFK DQG UXQZD\ OLJKWLQJ DQGRU
x 5XQZD\ FRQGLWLRQ HJ ZHW UXQZD\ x 7KH WHUUDLQ VHSDUDWLRQ DQG
x 7KH DLUFUDIW YHUWLFDO RU ODWHUDO GHYLDWLRQ IURP WKH

:HDWKHU FRQGLWLRQV
LQWHQGHG IOLJKWSDWK
x &HLOLQJ
8VXDOO\ PRUH WKDQ RQH IDFWRU LV LQYROYHG LQ D JLYHQ
x 9LVLELOLW\ LH YHUWLFDO YLVLELOLW\ VODQW YLVLELOLW\ DQG DSSURDFK FRPSRXQGLQJ WKH LQGLYLGXDO HIIHFWV
KRUL]RQWDO YLVLELOLW\ DQGRU
x &ORXGLQHVV HJ UDLQ IRJ RU IRJ SDWFKHV KD]H

$LUSRUW HQYLURQPHQW
PLVW VPRNH VQRZ ZKLWHRXW HIIHFW
x ³%ODFN KROH´ DORQJ WKH ILQDO DSSURDFK IOLJKW SDWK
+RZ GR 9LVXDO ,OOXVLRQV $IIHFW WKH 3LORW¶V

3HUFHSWLRQ " ,Q FDVH RI DSSURDFK RYHU ZDWHU RU ZLWK DQ
XQOLJKWHG DUHD RQ WKH DSSURDFK SDWK WKH
DEVHQFH RI YLVLEOH JURXQG IHDWXUHV UHGXFHV
9LVXDO LOOXVLRQV UHVXOW IURP WKH DEVHQFH RI RU WKH
WKH FUHZ DELOLW\ WR SHUFHLYH WKH DLUFUDIW
DOWHUDWLRQ RI YLVXDO UHIHUHQFHV WKDW PRGLILHV WKH SLORW
ODWHUDO SRVLWLRQ DQG YHUWLFDO SRVLWLRQ UHODWLYH
SHUFHSWLRQ RI KLV KHU SRVLWLRQ UHODWLYH WR WKH UXQZD\
WR WKH LQWHQGHG IOLJKW SDWK
WKUHVKROG

3DJH
x 8SKLOO RU GRZQKLOO WHUUDLQ EHIRUH WKH UXQZD\ 5XQZD\ HQYLURQPHQW

WKUHVKROG
x 5XQZD\ GLPHQVLRQV DVSHFW UDWLR )LJXUH
$Q XSKLOO VORSH LQ WKH DSSURDFK ]RQH RU D
GURSRII RI WHUUDLQ DW WKH DSSURDFK HQG RI
WKH UXQZD\ DVSHFW UDWLR LH LWV OHQJWK
UHODWLYH WR LWV ZLGWK DIIHFWV WKH FUHZ YLVXDO
WKH UXQZD\ FUHDWHV DQ LOOXVLRQ RI EHLQJ WRR
SHUVSHFWLYH YLHZ RI WKH UXQZD\
KLJK LH LPSUHVVLRQ RI D VWHHS JOLGH SDWK
DV VKRZQ RQ )LJXUH WKXV D ODUJH RU VKRUW UXQZD\ ORZ DVSHFW
UDWLR FUHDWHV DQ LPSUHVVLRQ RI EHLQJ
SRVVLEO\ LQGXFLQJ D FRUUHFWLRQ
WRR ORZ DQG
LQFUHDVLQJ WKH UDWH RI GHVFHQW WKDW
SODFHV WKH DLUFUDIW EHORZ WKH LQWHQGHG D QDUURZ RU ORQJ UXQZD\ KLJK DVSHFW
JOLGH SDWK RU UDWLR FUHDWHV DQ LPSUHVVLRQ RI EHLQJ
WRR KLJK
SUHYHQWLQJ WKH IOLJKW FUHZ IURP GHWHFWLQJ
D WRR VKDOORZ IOLJKW SDWK
3HUFHLYHG *OLGH 3DWK

$FWXDO *OLGH 3DWK
)LJXUH )LJXUH
3KRWR /)%2 5 P [ P

$ GRZQKLOO VORSH LQ WKH DSSURDFK ]RQH GHJUHH JOLGH VORSH IW 5$
FUHDWHV DQ LOOXVLRQ RI EHLQJ WRR ORZ LH
LPSUHVVLRQ RI D VKDOORZ JOLGH SDWK DV
VKRZQ RQ )LJXUH WKXV
x 5XQZD\ XSKLOO RU GRZQKLOO VORSH
SRVVLEO\ LQGXFLQJ D FRUUHFWLRQ SODFLQJ
WKH DLUFUDIW DERYH WKH LQWHQGHG JOLGH
$Q XSKLOO VORSH FUHDWHV DQ LOOXVLRQ RI EHLQJ
WRR KLJK LPSUHVVLRQ RI D VWHHS JOLGH SDWK
SDWK RU
DQG
SUHYHQWLQJ WKH IOLJKW FUHZ IURP GHWHFWLQJ
D WRR VWHHS IOLJKW SDWK $ GRZQKLOO VORSH FUHDWHV DQ LOOXVLRQ RI EHLQJ
WRR ORZ LPSUHVVLRQ RI D VKDOORZ JOLGH SDWK
x $SSURDFK DQG UXQZD\ OLJKWLQJ
3HUFHLYHG *OLGH 3DWK 7KH DSSURDFK DQG UXQZD\ OLJKWLQJ LQFOXGLQJ
$FWXDO *OLGH 3DWK WKH WRXFKGRZQ ]RQH OLJKWLQJ DIIHFWV

WKH GHSW SHUFHSWLRQ DV D IXQFWLRQ RI
7KH OLJKWLQJ LQWHQVLW\
7KH GD\WLPH RU QLJKW WLPH FRQGLWLRQV

DQG
)LJXUH 7KH ZHDWKHU FRQGLWLRQV

3DJH
%ULJKW UXQZD\OLJKWV FUHDWH WKH LPSUHVVLRQ 6KDOORZ IRJ LH IRJ OD\HU QRW H[FHHGLQJ
RI EHLQJ FORVHU WR WKH UXQZD\ KHQFH RQ D IW LQ WKLFNQHVV UHVXOWV LQ D ORZ
VWHHSHU JOLGH SDWK REVFXUDWLRQ EXW DOVR LQ ORZ KRUL]RQWDO
YLVLELOLW\
/RZ LQWHQVLW\ OLJKWV FUHDWH WKH LPSUHVVLRQ RI
EHLQJ IDUWKHU DZD\ KHQFH RQ D VKDOORZHU :KHQ RQ WRS RI D VKDOORZ IRJ OD\HU WKH
JOLGH SDWK JURXQG RU DLUSRUW DQG UXQZD\ LI IO\LQJ
RYHUKHDG FDQ EH VHHQ EXW ZKHQ
$ QRQVWDQGDUG VSDFLQJ RI UXQZD\ OLJKWV HQWHULQJ WKH IRJ OD\HU WKH IRUZDUG DQG
DOVR PRGLILHV WKH SLORW¶V SHUFHSWLRQ RI WKH VODQW YLVLELOLW\ XVXDOO\ DUH ORVW
UXQZD\ GLVWDQFH DQG JOLGH SDWK DQG
(QWHULQJ D IRJ OD\HU DOVR FUHDWHV WKH
,I UXQZD\ OLJKWLQJ LV SDUWLDOO\ YLVLEOH HJ SHUFHSWLRQ RI D SLWFK XS WKXV LQGXFLQJ D
GXULQJ WKH GRZQZLQG OHJ RU GXULQJ WKH EDVH WHQGHQF\ WR SXVK RYHU DQG SODFH WKH
OHJ RI D YLVXDO RU FLUFOLQJ DSSURDFK WKH DLUFUDIW EHORZ WKH GHVLUHG JOLGH SDWK DQG
UXQZD\ PD\ DSSHDU EHLQJ IDUWKHU DZD\ RU LQ D VWHHSHUWKDQGHVLUHG DWWLWXGH
DW D GLIIHUHQW DQJOH LH WKH LQWHUFHSW DQJOH

LV SHUFHLYHG DV VPDOOHU WKDQ DFWXDO ,Q OLJKW UDLQ RU PRGHUDWH UDLQ WKH UXQZD\
PD\ DOVR DSSHDU IX]]\ EHFDXVH RI UDLQ KDOR
HIIHFW LQFUHDVLQJ WKH ULVN RI QRW SHUFHLYLQJ
5XQZD\ DSSURDFK DLGV D YHUWLFDO GHYLDWLRQ RU ODWHUDO GHYLDWLRQ
GXULQJ WKH YLVXDO VHJPHQW
7KH IROORZLQJ UXQZD\ DSSURDFKDLGV DQG FRQGLWLRQV
PD\ LQFUHDVH WKH FUHZ H[SRVXUH WR YLVXDO LOOXVLRQV 7KH YLVXDO VHJPHQW LV GHILQHG DV WKH
VHJPHQW IORZQ DIWHU IXOO WUDQVLWLRQ IURP
x *OLGH VORSH EHDP EHLQJ XQXVDEOH EH\RQG D LQVWUXPHQWV WR YLVXDO UHIHUHQFHV
VSHFLILF SRLQW EHFDXVH RI WHUUDLQ RU EHORZ D

VSHFLILF DOWLWXGHKHLJKW EHFDXVH RI DSSURDFK KHDY\ UDLQ DIIHFWV GHSWK SHUFHSWLRQ DQG
RYHU ZDWHU GLVWDQFH SHUFHSWLRQ
x 2IIVHW ORFDOL]HU FRXUVH DQGRU 5DLQ RQ ZLQGVKLHOGV FUHDWHV D UHIUDFWLRQ

DQG WKH SHUFHSWLRQ RI EHLQJ WRR KLJK
x EDU 9$6, LI XVHG EHORZ W\SLFDOO\ IW

WKXV LQGXFLQJ D QRVH GRZQ FRUUHFWLRQ
WKDW SODFHV WKH DLUFUDIW EHORZ WKH
KHLJKW DERYH WRXFKGRZQ +$7 IRU JOLGH SDWK
GHVLUHG IOLJKW SDWK
FRUUHFWLRQV
,Q GD\OLJKW FRQGLWLRQV UDLQ GLPLQLVKHV

:HDWKHU FRQGLWLRQV WKH DSSDUHQW LQWHQVLW\ RI WKH DSSURDFK
OLJKWLQJ V\VWHP $/6 UHVXOWLQJ LQ WKH
7KH IROORZLQJ ZHDWKHU FRQGLWLRQV PD\ FDXVH YLVXDO UXQZD\ DSSHDULQJ WR EH IDUWKHU DZD\
LOOXVLRQV
$V D UHVXOW RI WKLV LOOXVLRQ WKH IOLJKWFUHZ

x 3UHFLSLWDWLRQ¶V HJ UDLQ IRJ VQRZ
WHQGV WR VKDOORZ WKH IOLJKW SDWK UHVXOWLQJ
LQ D ORQJ ODQGLQJ
)O\LQJ LQ OLJKW UDLQ IRJ KD]H PLVW VPRNH
GXVW JODUH RU GDUNQHVV XVXDOO\ FUHDWH DQ
LOOXVLRQ RI EHLQJ WRR KLJK
,Q QLJKW WLPH FRQGLWLRQV UDLQ LQFUHDVHV
WKH DSSDUHQW EULOOLDQFH RI WKH $/6
PDNLQJ WKH UXQZD\ DSSHDUV WR EH
)O\LQJ LQ KD]H FUHDWHV WKH LPSUHVVLRQ WKDW
FORVHU LQGXFLQJ D SLWFK GRZQ LQSXW DQG
WKH UXQZD\ LV IDUWKHU DZD\ LQGXFLQJ D
WKH ULVN RI ODQGLQJ VKRUW RI WKH UXQZD\
WHQGHQF\ WR VKDOORZ WKH JOLGH SDWK DQG ODQG
WKUHVKROG
ORQJ

3DJH
ZKHQ EUHDNLQJ RXW RI WKH RYHUFDVW DW ERWK 7KH IROORZLQJ WDEOH SURYLGHV D VXPPDU\ RI WKH
FHLOLQJ DQG YLVLELOLW\ PLQLPXPV '+ DQG YDULRXV IDFWRUV DQG FRQGLWLRQV WRJHWKHU ZLWK WKHLU
595 WKH VODQW YLVLELOLW\ PD\ QRW DOORZ VLJKW HIIHFWV RQ WKH SLORW¶V SHUFHSWLRQ DQG DFWLRQV
RI WKH IDUWKHU EDUV RI WKH 9$6,3$3, WKXV
UHGXFLQJ WKH DYDLODEOH YLVXDO FOXHV IRU WKH
YLVXDO VHJPHQW LQ UHGXFHG YLVLELOLW\ &RQGLWLRQ 3HUFHSWLRQ $FWLRQ 5HVXOW
D VQRZFRYHUHG WHUUDLQ WRJHWKHU ZLWK D
FORXGV RYHUFDVW FUHDWH D SKHQRPHQRQ 1DUURZ
FDOOHG ³ZKLWHRXW´ WKDW HOLPLQDWH SHUFHSWLRQ RU

ORQJ UXQZD\
RI WHUUDLQ IHDWXUHV VORSH DQG KHLJKW DERYH
WHUUDLQ %HLQJ WRR 3XVK /DQG VKRUW
5XQZD\ RU KLJK ODQG KDUG
WHUUDLQ
x &URVVZLQG
XSKLOO VORSH
,Q FURVVZLQG FRQGLWLRQV WKH UXQZD\ OLJKWV

DQG HQYLURQPHQW ZLOO EH DQJOHG ZLWK WKH :LGH
RU
DLUFUDIW KHDGLQJ IOLJKW FUHZ VKRXOG PDLQWDLQ
VKRUW UXQZD\
WKH GULIW FRUUHFWLRQ DQG UHVLVW WKH WHQGHQF\
WR DOLJQ WKH DLUFUDIW KHDGLQJ ZLWK WKH UXQZD\ %HLQJ WRR 3XOO /DQG ORQJ
5XQZD\ RU ORZ RYHUUXQ
FHQWHUOLQH
WHUUDLQ
GRZQKLOO
x 5XQZD\ VXUIDFH FRQGLWLRQ HJ ZHW UXQZD\ VORSH
$ ZHW UXQZD\ GRHV QRW UHIOHFW OLJKW WKXV 3LWFK GRZQ /DQG VKRUW
DIIHFWLQJ GHSWK SHUFHSWLRQ E\ DSSHDULQJ WR RU ODQG KDUG
EH IDUWKHU DZD\ 'XFN XQGHU &),7
7KLV YLVXDO HIIHFW XVXDOO\ UHVXOWV LQ D ODWH %ULJKW %HLQJ WRR 3XVK /DQG VKRUW
UXQZD\ FORVH ODQG KDUG
IODUH DQG LQ D ILUP WRXFKGRZQ
OLJKWLQJ WRR VWHHS
:KHQ ODQGLQJ RQ D ZHW UXQZD\ SHULSKHUDO

/RZ LQWHQVLW\ %HLQJ IDUWKHU 3XOO /DQG ORQJ
YLVLRQ RI UXQZD\ HGJH OLJKWV VKRXOG EH XVHG
OLJKWLQJ DZD\ RYHUUXQ
WR LQFUHDVH WKH GHSWK SHUFHSWLRQ DQG
WRR VKDOORZ
GHWHUPLQH WKH IODUH SRLQW
/LJKW UDLQ %HLQJ WRR 3XVK /DQG VKRUW

IRJ KD]H KLJK ODQG KDUG
PLVW VPRNH
GXVW
(QWHULQJ IRJ %HLQJ SLWFK 3XVK 6WHHS

VKDOORZ XS RYHU JOLGH SDWK
OD\HU &),7
)O\LQJ LQ %HLQJ IDUWKHU 3XOO /DQG ORQJ

KD]H DZD\ WRR RYHUUXQ
VKDOORZ
:HW 5XQZD\ %HLQJ IDUWKHU /DWH +DUG

DZD\ WRR IODUH ODQGLQJ
KLJK
&URVVZLQG %HLQJ &DQFHO 'ULIWLQJ

DQJOHG ZLWK GULIW RII WUDFN
UXQZD\ FRUUHFWLRQ RII UXQZD\
FHQWHUOLQH

3DJH
+RZ WR /HVVHQ WKH (IIHFWV RI 9LVXDO x 5XQZD\ DSSURDFK DQG YLVXDO DLGV
,OOXVLRQV "
7\SH RI DSSURDFK OHWGRZQ DLG UHVWULFWLRQ
7R OHVVHQ WKH HIIHFWV RI YLVXDO LOOXVLRQV SUHYHQWLRQ VXFK DV JOLGH VORSH XQXVDEOH EH\RQG D
VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG EH GHYHORSHG VSHFLILF SRLQW RU EHORZ D VSHFLILF DOWLWXGH
DQG LPSOHPHQWHG EDVHG RQ WKH IROORZLQJ
UHFRPPHQGDWLRQV 7\SH RI DSSURDFK OLJKWLQJ V\VWHP DQG
+D]DUG $ZDUHQHVV 9$6, RU 3$3, DYDLODELOLW\
2SHUDWRUV VKRXOG DVVHVV WKHLU H[SRVXUH WR YLVXDO

LOOXVLRQV LQ WKHLU RSHUDWLQJ HQYLURQPHQW LH RYHU WKH
7HUUDLQ DZDUHQHVV
HQWLUH URXWH QHWZRUN
:KHQ UHTXHVWLQJ RU DFFHSWLQJ D YLVXDO DSSURDFK
IOLJKW FUHZ VKRXOG EH DZDUH RI WKH VXUURXQGLQJ
)OLJKW FUHZV VKRXOG EH HGXFDWHG DQG WUDLQHG RQ WKH
WHUUDLQ IHDWXUHV DQG PDQPDGH REVWDFOHV
IDFWRUV DQG FRQGLWLRQV FUHDWLQJ YLVXDO LOOXVLRQV DQG
WKHLU HIIHFWV RQ WKH SHUFHSWLRQ RI WKH HQYLURQPHQW
$W QLJKW DQ XQOLJKWHG KLOOVLGH EHWZHHQ D OLJKWHG DUHD
DQG DLUFUDIW SRVLWLRQ
DQG WKH UXQZD\ WKUHVKROG PD\ SUHYHQW WKH IOLJKW
x 3HUFHSWLRQ RI KHLJKWV GHSWK GLVWDQFHV DQG FUHZ IURP FRUUHFWO\ SHUFHLYLQJ WKH ULVLQJ WHUUDLQ
DQJOHV
x $VVHVVPHQW RI DLUFUDIW ODWHUDO SRVLWLRQ DQG JOLGH

SDWK
)O\LQJ WHFKQLTXHV
7\SH RI DSSURDFK
7KH DZDUHQHVV RI YLVXDO LOOXVLRQV FDQ EH VXSSRUWHG
E\ DQ LGHQWLILFDWLRQ RI DOO KD]DUGDLUSRUWV DQGRU $W QLJKW ZKHQ DQ LQVWUXPHQW DSSURDFK LV DYDLODEOH
KD]DUGUXQZD\V LQ WKH RSHUDWRU¶V QHWZRUN DV D SUHIHU WKLV DSSURDFK WR D YLVXDO DSSURDFK WR UHGXFH
IXQFWLRQ RI WKH DYDLODEOH QDYDLGV YLVXDO DLGV DQG WKH ULVN RI DFFLGHQW FDXVHG E\ YLVXDO LOOXVLRQV
SUHYDLOLQJ KD]DUGV
x ,/6 DSSURDFK ZLWK XVH RI 9$6, 3$3,
+D]DUG $VVHVVPHQW DV DYDLODEOH IRU WKH YLVXDO VHJPHQW RU
$SSURDFK KD]DUGV VKRXOG EH DVVHVVHG IRU HDFK

x 1RQSUHFLVLRQ DSSURDFK VXSSRUWHG E\ D 9$6,
3$3, DV DYDLODEOH
LQGLYLGXDO DSSURDFK GXULQJ WKH DSSURDFK DQG JR
DURXQG EULHILQJ E\ UHYLHZLQJ WKH IROORZLQJ HOHPHQWV
2Q D QRQSUHFLVLRQ DSSURDFK GR QRW GHVFHQG EHORZ
x &HLOLQJ DQG YLVLELOLW\ FRQGLWLRQV WKH 0'$+ EHIRUH UHDFKLQJ WKH YLVXDO
GHVFHQWGHFLVLRQ SRLQW 9'3 HYHQ LI DGHTXDWH
x :HDWKHU
YLVXDO UHIHUHQFHV KDYH EHHQ DFTXLUHG EHIRUH
ZLQG WXUEXOHQFH UHDFKLQJ WKH 9'3
UDLQ VKRZHUV DQGRU 7R SUHYHQW JRLQJ WRR HDUO\ WR YLVXDO UHIHUHQFHV DQG
IRJ RU VPRNH SDWFKHV

GHVFHQGLQJ SUHPDWXUHO\ EHORZ WKH 0'$+ WKH 3)
VKRXOG PDLQWDLQ UHIHUHQFH WR LQVWUXPHQWV XQWLO
UHDFKLQJ WKH 9'3 7KLV SURYLGHV IXUWKHU SURWHFWLRQ
x &UHZ H[SHULHQFH ZLWK DLUSRUW DQG DLUSRUW
DJDLQVW YLVXDO LOOXVLRQV LQ KD]DUG FRQGLWLRQV
HQYLURQPHQW
VXUURXQGLQJ WHUUDLQ DQGRU 'XULQJ D YLVXDO RU FLUFOLQJ DSSURDFK LI WKH 9$6,

3$3, LQGLFDWHV EHORZ JOLGH VORSH OHYHO RII RU FOLPE
XQWLO WKH 9$6,3$3, VKRZV RQJOLGHSDWK
REVWUXFWLRQV EODFNKROH RIIDLUSRUW OLJKW
SDWWHUQV «

3DJH
)OLJKW SDWK PRQLWRULQJ &UHZ FRRUGLQDWLRQ

5HVLVW WKH WHQGHQF\ WR SLWFK GRZQ DQG ³GXFN XQGHU´ 7KH GHILQHG WDVN VKDULQJ HQVXUHV D FRQWLQXHG
WKLV LV WKH JUHDWHVW FKDOOHQJH GXULQJ WKH YLVXDO PRQLWRULQJ RI YLVXDO DQG LQVWUXPHQW UHIHUHQFHV
VHJPHQW RI WKH DSSURDFK WKLV LQFOXGHV WKURXJKRXW WKH WUDQVLWLRQ WR YLVXDO UHIHUHQFHV DQG
WKHUHDIWHU LH GXULQJ D YLVXDO DSSURDFK RU GXULQJ
x 3LWFKLQJ GRZQ LQWR WKH DSSURDFK OLJKW LQ DQ WKH YLVXDO VHJPHQW RI DQ LQVWUXPHQW DSSURDFK
DWWHPSW WR VHH WKH UXQZD\ GXULQJ D SUHFLVLRQ
DSSURDFK RU ,Q NQRZQ RU DQWLFLSDWHG KD]DUG FRQGLWLRQV WKH 31)
VKRXOG UHLQIRUFH KLV KHU PRQLWRULQJ RI LQVWUXPHQW
x 'XFNLQJ XQGHU EHFDXVH RI WKH LPSUHVVLRQ RI UHIHUHQFHV DQG RI IOLJKW SURJUHVV IRU DQ HIIHFWLYH
EHLQJ WRR KLJK ZKHQ DIIHFWHG E\ YLVXDO LOOXVLRQV FURVVFKHFN DQG EDFNXS RI WKH 3)
$OWLWXGH DQG H[FHVVLYHSDUDPHWHUGHYLDWLRQ FDOORXWV

0DLQWDLQ D FRPELQDWLRQ RI YLVXDO IO\LQJ VXSSRUWHG E\ VKRXOG EH WKH VDPH IRU LQVWUXPHQW DSSURDFKHV DQG
PRQLWRULQJ RI LQVWUXPHQWV LQFOXGLQJ WKH JOLGH VORSH YLVXDO DSSURDFKHV DQG VKRXOG EH FRQWLQXHG GXULQJ
GHYLDWLRQ GXULQJ WKH YLVXDO VHJPHQW RI DQ ,/6 WKH YLVXDO VHJPHQW LH LQFOXGLQJ JOLGH VORSH
DSSURDFK GHYLDWLRQ GXULQJ DQ ,/6 DSSURDFK RU YHUWLFDO VSHHG
GHYLDWLRQ GXULQJ D QRQSUHFLVLRQ DSSURDFK
0RQLWRU WKH 9$6,3$3, ZKHQHYHU DYDLODEOH WKLV
SURYLGHV DGGLWLRQDO YLVXDO FXHV WR UHVLVW WKH ,Q FDVH RI D JRDURXQG VSHFLILF H[FHVVLYH
WHQGHQF\ WR LQFUHDVH RU GHFUHDVH WKH UDWH RI SDUDPHWHUGHYLDWLRQ FDOORXWV VKRXOG EH FRQVLGHUHG
GHVFHQW DV LQGLFDWHG LQ 623V
2Q UXQZD\V HTXLSSHG ZLWK DQ $/6),, DSSURDFK

OLJKWLQJ V\VWHP EH DZDUH RI WKH WZR URZV RI UHG
OLJKWV DOLJQHG ZLWK WKH WRXFKGRZQ ]RQH OLJKWV DV DQ
7\SLFDO &UHZ $FWLRQV DQG 5HVXOWV
DGGLWLRQDO VDIHJXDUG DJDLQVW ³GXFNLQJ XQGHU´
7KH IROORZLQJ FUHZ DFWLRQV DQG WKHLU FRQVHTXHQFHV
RIWHQ DUH FLWHG LQ WKH DQDO\VLV RI DSSURDFKDQG
7KH IROORZLQJ SURYLGHV D VXPPDU\ RI WKH WHFKQLTXHV
ODQGLQJ LQFLGHQWV RU DFFLGHQW UHVXOWLQJ IURP YLVXDO
DYDLODEOH WR FRXQWHU YLVXDO LOOXVLRQV DQG SUHYHQW
LOOXVLRQV
IURP GXFNLQJ XQGHU
x 8QFRQVFLRXV PRGLILFDWLRQ RI WKH DLUFUDIW

x 0DLQWDLQ LQVWUXPHQWV VFDQ GRZQ WR WRXFKGRZQ WUDMHFWRU\ WR NHHS D FRQVWDQW SHUFHSWLRQ RI YLVXDO
UHIHUHQFHV
x &URVVFKHFN LQVWUXPHQW LQGLFDWLRQV DJDLQVW
RXWVLGH YLVXDO FXHV WR FRQILUP JOLGH SDWK x 1DWXUDO WHQGHQF\ WR GHVFHQG EHORZ WKH JOLGH
VORSH RU WKH LQLWLDO JOLGH SDWK LH ³GXFNLQJ
x 8VH DQ ,/6 DSSURDFK ZKHQHYHU DYDLODEOH DQG XQGHU´
x ,QDELOLW\ WR DUUHVW WKH UDWH RI GHVFHQW DIWHU

x 8VH 9$6, 3$3, LI DYDLODEOH GRZQ WR UXQZD\
GHVFHQGLQJ EHORZ WKH LQWHQGHG JOLGH SDWK
WKUHVKROG RQO\ ZKHQ XVLQJ D EDU 9$6, RU
LH ODWH UHFRJQLWLRQ RI WKH IODWWHQLQJ RI UXQZD\
D 3$3,
DQG UXQZD\ HQYLURQPHQW
x 8VH DYDLODEOH UHIHUHQFHV DQG LQGLFDWLRQV VXFK x $EVHQFH RI UHIHUHQFH WR LQVWUXPHQWV WR VXSSRUW
DV WKH 1' H[WHQGHG UXQZD\ FHQWHUOLQH WKH ,/6 WKH YLVXDO VHJPHQW
'0( RU 925'0( GLVWDQFH DQG WKH DOWLWXGH
DERYH DLUILHOG HOHYDWLRQ WR FRQILUP WKH JOLGH SDWK x )DLOXUH WR GHWHFW WKH GHWHULRUDWLRQ RI YLVXDO
EDVHG RQ D W\SLFDOO\ IWSHUQP DSSURDFK UHIHUHQFHV DQG
JUDGLHQW
x )DLOXUH WR PRQLWRU WKH LQVWUXPHQWV DQG WKH IOLJKW
SDWK ZKLOH ERWK FUHZPHPEHUV DUH LQYROYHG LQ
WKH LGHQWLILFDWLRQ RI YLVXDO UHIHUHQFHV

3DJH
6XPPDU\ RI NH\ SRLQWV 5HJXODWRU\ 5HIHUHQFHV

7KH IROORZLQJ FULWLFDO NH\SRLQWV QHHG WR EH
'RF
HPSKDVL]HG
x )$5 ± 7DNHRII DQG ODQGLQJ XQGHU ,)5 ±

x $ZDUHQHVV RI ZHDWKHU IDFWRUV
3DUDJUDSK E /RVV RI YLVXDO UHIHUHQFHV

x -$5236 ± 6XESDUW ( ± $OO :HDWKHU
2SHUDWLRQV ± $HURGURPH 2SHUDWLQJ
x $ZDUHQHVV DQG DVVHVVPHQW RI DSSURDFK
0LQLPD
KD]DUGV LH FRQGLWLRQV WKDW PD\ UHVXOW LQ YLVXDO
LOOXVLRQV VXFK DV ³EODFN KROH´
x -$5236 ± 6XESDUW ( ± $OO :HDWKHU
2SHUDWLRQV 7HUPLQRORJ\
x $GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ IRU
DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG IRU IO\LQJ WKH
YLVXDO VHJPHQW WKLV LQFOXGHV
PRQLWRULQJ E\ 3) RI RXWVLGH YLVXDO FXHV ZKLOH

WUDQVLHQWO\ UHIHUULQJ WR LQVWUXPHQWV WR VXSSRUW
DQG PRQLWRU WKH IOLJKW SDWK GXULQJ WKH YLVXDO
VHJPHQW DQG
PRQLWRULQJ E\ 31) RI KHDGGRZQ FXHV IRU

HIIHFWLYH FURVVFKHFN DQG EDFNXS LH IRU
FDOOLQJ DQ\ H[FHVVLYHSDUDPHWHUGHYLDWLRQ

7KH IROORZLQJ %ULHILQJ 1RWHV FRPSOHPHQW WKH DERYH
GLVFXVVLRQ RQ WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV
DQG RQ YLVXDO LOOXVLRQV
x ² $SSURDFK DQG *RDURXQG %ULHILQJV
x ² 7HUUDLQ $ZDUHQHVV ²

:KHQ DQG +RZ "
x ² $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV
x ² )O\LQJ 9LVXDO $SSURDFKHV

3DJH
²:LQG6KHDU$ZDUHQHVV
,QWURGXFWLRQ 'HILQLQJ :LQG 6KHDU

)OLJKW FUHZ DZDUHQHVV DQG DOHUWQHVV DUH NH\ IDFWRUV :LQG VKHDU LV GHILQHG DV D VXGGHQ FKDQJH RI ZLQG
LQ WKH VXFFHVVIXO DSSOLFDWLRQ RI ZLQG VKHDU YHORFLW\ DQGRU GLUHFWLRQ
DYRLGDQFH DQG HVFDSH UHFRYHU\ WHFKQLTXHV
7ZR W\SHV ZLQG VKHDU FDQ EH HQFRXQWHUHG
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI x 9HUWLFDO ZLQG VKHDU
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ
JXLGHOLQHV IRU DLUFUDIW RSHUDWLRQ LQ IRUHFDVW RU YHUWLFDO YDULDWLRQV RI WKH KRUL]RQWDO ZLQG
VXVSHFWHG ZLQG VKHDU RU GRZQEXUVW FRQGLWLRQV FRPSRQHQW UHVXOWLQJ LQ WXUEXOHQFH WKDW PD\
DIIHFW WKH DLUFUDIW DLUVSHHG ZKHQ FOLPELQJ RU
6WDWLVWLFDO 'DWD GHVFHQGLQJ WKURXJK WKH ZLQG VKHDU OD\HU
YHUWLFDO YDULDWLRQV RI WKH KRUL]RQWDO ZLQG
$GYHUVH ZHDWKHU RWKHU WKDQ ORZ YLVLELOLW\ DQG FRPSRQHQW RI NWSHU IW WR
UXQZD\ FRQGLWLRQ LV D FLUFXPVWDQWLDO IDFWRU LQ QHDUO\ NWSHU IW DUH W\SLFDO YDOXHV EXW D
RI DSSURDFKDQGODQGLQJ DFFLGHQWV YHUWLFDO ZLQG VKHDU PD\ UHDFK XS WR
NWSHU IW
$GYHUVH ZLQG FRQGLWLRQV LH VWURQJ FURVV ZLQGV
WDLOZLQG DQG ZLQG VKHDU DUH LQYROYHG LQ PRUH WKDQ x +RUL]RQWDO ZLQG VKHDU
RI DSSURDFKDQGODQGLQJ DFFLGHQWV DQG LQ
RI HYHQWV LQYROYLQJ &),7 KRUL]RQWDO YDULDWLRQV RI WKH ZLQG FRPSRQHQW
HJ GHFUHDVLQJ KHDG ZLQG RU LQFUHDVLQJ
:LQG VKHDU LV WKH SULPDU\ FDXVDO IDFWRU LQ RI WDLO ZLQG RU D VKLIW IURP D KHDG ZLQG WR D WDLO
DSSURDFKDQGODQGLQJ DFFLGHQWV DQG LV WKH FDXVH
WK ZLQG PD\ DIIHFW WKH DLUFUDIW LQ OHYHO IOLJKW RU
RI IDWDOLWLHV ZKLOH FOLPELQJ RU GHVFHQGLQJ
KRUL]RQWDO YDULDWLRQV RI ZLQG FRPSRQHQW
7KHVH VWDWLVWLFDO GDWD DUH VXPPDUL]HG LQ 7DEOH PD\ UHDFK XS WR NWSHUQDXWLFDO PLOH
:LQG VKHDU FRQGLWLRQV XVXDOO\ DUH DVVRFLDWHG ZLWK
)DFWRU RI (YHQWV WKH IROORZLQJ ZHDWKHU VLWXDWLRQV
$GYHUVH ZHDWKHU x -HW VWUHDPV
$GYHUVH ZLQG DOO FRQGLWLRQV x 0RXQWDLQ ZDYHV
:LQG VKHDU x )URQWDO VXUIDFHV
x 7KXQGHUVWRUPV DQG FRQYHFWLYH FORXGV DQG

7DEOH
:HDWKHU IDFWRUV LQ $SSURDFKDQG/DQGLQJ $FFLGHQWV x 0LFUREXUVWV
:LQG 6KHDU $ZDUHQHVV

3DJH
0LFUREXUVWV FRPELQH WZR GLVWLQFW WKUHDWV WR DYLDWLRQ x 9LVXDO REVHUYDWLRQ

VDIHW\
%ORZLQJ GXVW ULQJV RI GXVW GXVW GHYLOV LH
ZKLUOZLQGV FRQWDLQLQJ GXVW DQG VWDQG RU
x 7KH GRZQEXUVW SDUW UHVXOWLQJ LQ VWURQJ
DQ\ RWKHU HYLGHQFH RI VWURQJ ORFDO DLU
GRZQGUDIWV UHDFKLQJ XS WR NW RI YHUWLFDO
RXWIORZ QHDU WKH VXUIDFH RIWHQ DUH LQGLFDWLRQ
YHORFLW\ DQG
RI SRWHQWLDO RU H[LVWLQJ ZLQG VKHDU
x 7KH RXWEXUVW SDUW UHVXOWLQJ LQ ODUJH KRUL]RQWDO

ZLQG VKHDU DQG ZLQG FRPSRQHQW VKLIW IURP KHDG
x 2QERDUG ZLQG FRPSRQHQW DQG JURXQG VSHHG
PRQLWRULQJ
ZLQG WR WDLO ZLQG KRUL]RQWDO ZLQGV PD\ UHDFK XS
WR NW
2Q DSSURDFK D FRPSDULVRQ RI WKH KHDG
ZLQG RU WDLO ZLQG FRPSRQHQW DORIW DV
:LQG 6KHDU $YRLGDQFH DYDLODEOH DQG WKH VXUIDFH KHDG RU WDLO ZLQG
FRPSRQHQW LQGLFDWHV WKH SRWHQWLDO DQG OLNHO\
7KH IROORZLQJ LQIRUPDWLRQ VKRXOG EH XVHG WR DYRLG GHJUHH RI YHUWLFDO ZLQG VKHDU
DUHDV RI SRWHQWLDO RU REVHUYHG ZLQG VKHDU
x 2QERDUG ZHDWKHU UDGDU DQG
x :HDWKHU UHSRUWV DQG IRUHFDVW
x 2QERDUG SUHGLFWLYH ZLQG VKHDU V\VWHP

7KH ORZ OHYHO ZLQG VKHDU DOHUW V\VWHP
//:$6 DOORZV FRQWUROOHUV WR ZDUQ SLORWV RI
H[LVWLQJ RU LPSHQGLQJ ZLQG VKHDU FRQGLWLRQV
//:$6 FRQVLVWV RI D FHQWUDO ZLQG VHQVRU

VHQVLQJ ZLQG YHORFLW\ DQG GLUHFWLRQ DQG
SHULSKHUDO ZLQG VHQVRUV ORFDWHG DW
DSSUR[LPDWHO\ QP IURP WKH FHQWHU
&HQWHU ZLQG VHQVRU GDWD DUH DYHUDJHG RYHU

D UROOLQJ PLQXWH SHULRG DQG FRPSDUHG
HYHU\ VHFRQGV WR WKH GDWD RI WKH
SHULSKHUDO ZLQG VHQVRUV
$Q DOHUW LV JHQHUDWHG ZKHQHYHU D GLIIHUHQFH

LQ H[FHVV RI NW LV GHWHFWHG
3KRWR &UHGLW 6)(1$ 6H[WDQW $YLRQLFV
//:$6 PD\ QRW GHWHFW GRZQEXUVWV ZLWK D
GLDPHWHU RI QP RU OHVV
$ 7HUPLQDO 'RSSOHU :HDWKHU 5DGDU

:LQG 6KHDU 5HFRJQLWLRQ
7':5 DOORZV WR GHWHFW DSSURDFKLQJ ZLQG
VKHDU DUHDV DQG WKXV WR SURYLGH SLORWV ZLWK
7LPHO\ UHFRJQLWLRQ RI D ZLQG VKHDU FRQGLWLRQ LV YLWDO
PRUH DGYDQFH ZDUQLQJ RI ZLQG VKHDU
IRU WKH VXFFHVVIXO LPSOHPHQWDWLRQ RI WKH ZLQG VKHDU
KD]DUG
UHFRYHU\HVFDSH SURFHGXUH
x 3LORW¶V UHSRUWV
7KH DLUFUDIW IOLJKW HQYHORSH SURWHFWLRQ SURYLGHV DQ
DXWRPDWLF GHWHFWLRQ RI D ZLQG VKHDU FRQGLWLRQ GXULQJ
3,5(36 RI ZLQG VKHDU LQ H[FHVV RI NW RU WDNHRII DSSURDFK RU JRDURXQG EDVHG RQ WKH
GRZQGUDIW XSGUDIW RI IWPQ EHORZ DVVHVVPHQW RI WKH DLUFUDIW SHUIRUPDQFH IOLJKW
IW DERYH DLUILHOG HOHYDWLRQ VKRXOG EH SDUDPHWHUV DQG DFFHOHUDWLRQV
FDXVH IRU FDXWLRQ

3DJH
7KH IROORZLQJ GHYLDWLRQV VKRXOG EH FRQVLGHUHG DV ,I WKH )' ZLQGVKHDU JXLGDQFH LV QRW DYDLODEOH
LQGLFDWLRQV RI D SRVVLEOH ZLQG VKHDU FRQGLWLRQ HJ )' QRW DYDLODEOH D VLPLODU UHFRYHU\ WHFKQLTXH
LV UHFRPPHQGHG DQG SXEOLVKHG LQ WKH DSSOLFDEOH
x ,QGLFDWHG DLUVSHHG YDULDWLRQV LQ H[FHVV RI NW
)&20
x *URXQG VSHHG YDULDWLRQV GHFUHDVLQJ KHDG ZLQG
RU LQFUHDVLQJ WDLO ZLQG RU VKLIW IURP KHDG ZLQG WR
WDLO ZLQG 5HDFWLYH DQG 3UHGLFWLYH :LQG 6KHDU
x 9HUWLFDO VSHHG H[FXUVLRQV RI IWPQ
:DUQLQJV
x 3LWFK DWWLWXGH H[FXUVLRQV RI GHJUHHV ,Q DGGLWLRQ WR WKH )' ZLQGVKHDUVXUYLYDO JXLGDQFH
DQ RSWLRQDO :,1'6+($5 ZDUQLQJ LV DYDLODEOH RQ
x *OLGH VORSH GHYLDWLRQ RI GRW
PRVW DLUFUDIW PRGHOV
x +HDGLQJ YDULDWLRQV RI GHJUHHV

7KH ZLQG VKHDU ZDUQLQJ DQG WKH )' VXUYLYDO
x 8QXVXDO DXWRWKURWWOH DFWLYLW\ RU WKURWWOH OHYHUV JXLGDQFH DUH DFWLYDWHG RQO\ ZKHQ D ZLQG VKHDU
SRVLWLRQ FRQGLWLRQ LV GHWHFWHG EDVHG RQ WKH DVVHVVPHQW RI
DLUFUDIW SHUIRUPDQFH IOLJKW SDUDPHWHUV DQG
DFFHOHUDWLRQV
:LQG 6KHDU 6XUYLYDO 6WUDWHJ\
7KH ZLQG VKHDU ZDUQLQJ DQG JXLGDQFH WKHUHIRUH DUH
,Q FDVH RI ZLQG VKHDU HQFRXQWHU D VXUYLYDO VWUDWHJ\ FDOOHG 5HDFWLYH :LQG 6KHDU 6\VWHPV EHFDXVH WKH\
QHHGV WR EH DGRSWHG WR PLQLPL]H WKH DOWLWXGH ORVV GR QRW LQFRUSRUDWH DQ\ IRUZDUG ORRNLQJ DQG
DQG WKH DVVRFLDWHG ULVN RI JURXQG FRQWDFW DQWLFLSDWLRQ FDSDELOLW\
7KH IROORZLQJ GHVFULEHV WKH ZLQG VKHDU VXUYLYDO 7R FRPSOHPHQW WKH UHDFWLYH ZLQG VKHDU V\VWHPV
VWUDWHJ\ LPSOHPHQWHG LQ WKH IOLJKW GLUHFWRU )' IRU DQG SURYLGH DQ HDUO\ ZDUQLQJ RI ZLQG VKHDU DFWLYLW\
FRQYHQWLRQDO DLUFUDIW PRGHOV WKH ODVW JHQHUDWLRQ RI ZHDWKHU UDGDUV IHDWXUHV
WKH FDSDELOLW\ WR GHWHFW ZLQG VKHDU DUHDV DKHDG RI
7KH )' ZLQG VKHDU UHFRYHU\ JXLGDQFH DWWHPSWV WR WKH DLUFUDIW
x 0DLQWDLQ WKH VSHHG WDUJHW VSHHG VHOHFWHG RQ

7KLV QHZ HTXLSPHQW LV UHIHUUHG WR DV D 3UHGLFWLYH
)&8 NW DV ORQJ DV D SRVLWLYH YHUWLFDO
:LQG 6KHDU 6\VWHP
VSHHG LV SRVVLEOH
x $GMXVW WKH SLWFK DWWLWXGH DV WKH YHUWLFDO VSHHG 3UHGLFWLYH ZLQG VKHDU V\VWHPV SURYLGH W\SLFDOO\ D
GHFUHDVHV WRZDUGV ]HUR RQHPLQXWH DGYDQFH ZDUQLQJ
x 0DLQWDLQ D VOLJKWO\ SRVLWLYH YHUWLFDO VSHHG XQWLO 3UHGLFWLYH ZLQG VKHDU V\VWHPV JHQHUDWH WKUHH OHYHOV
DLUVSHHG GHFUHDVHV WR WKH ERXQGDU\ RI WKH VWLFN RI ZLQG VKHDU DOHUW
VKDNHU LQWHUPLWWHQW VWLFN VKDNHU DFWLYDWLRQ
WKHQ
x $GYLVRU\ DOHUW YRLFH PHVVDJHV
x 0DLQWDLQ WKH DLUVSHHG VOLJKWO\ DERYH WKH VWLFN

VKDNHU ERXQGDU\ DOORZLQJ DQ DOWLWXGH ORVV DV x $PEHU FDXWLRQ :6 $+($' RU
ORQJ DV UHTXLUHG IRU PDLQWDLQLQJ WKH VWLFNVKDNHU

VSHHG x 5HG ZDUQLQJ :6 $+($'
7KH ZLQG VKHDU JXLGDQFH LV DYDLODEOH DW WDNHRII LQ &RORUHG SDWWHUQV DQG LFRQV DUH GLVSOD\HG RQ WKH
DSSURDFK DQG GXULQJ D JRDURXQG ZKHQ EHORZ ZHDWKHU UDGDU GLVSOD\ 1' WR LQGLFDWH DUHDV RI
IW 5$ ZLQGVKHDU DFWLYLW\
7KH SLWFK DWWLWXGH GHPDQG LV OLPLWHG E\ WKH VWDOO

SURWHFWLRQ GXULQJ DOO WKH SKDVHV RI WKH DERYH
VXUYLYDO VWUDWHJ\

3DJH
:LQG 6KHDU $ZDUHQHVV 7KH ZLQG VKHDU VXUYLYDO HVFDSH SURFHGXUH VKRXOG
EH WUDLQHG LQ D IXOOIOLJKW VLPXODWRU XVLQJ UHDOLVWLF
7KH IROORZLQJ DUH RSSRUWXQLWLHV WR HQKDQFH ZLQG VKHDU SURILOHV UHFRUGHG GXULQJ DFWXDO ZLQG
VKHDU HQFRXQWHUV DV LOOXVWUDWHG E\ )LJXUH
x :LQG VKHDU DZDUHQHVV DQG
x 2SHUDWLRQDO UHFRPPHQGDWLRQV DQG SURFHGXUHV

6WDQGDUG RSHUDWLQJ SURFHGXUHV 623V VKRXOG
HPSKDVL]H WKH IROORZLQJ ZLQGVKHDUDZDUHQHVV
LWHPV
x :LQG VKHDU DZDUHQHVV DQG DYRLGDQFH
7DNHRII GHSDUWXUH DQG DSSURDFK

JRDURXQG EULHILQJV DQG
$SSURDFK KD]DUGV DZDUHQHVV

x :LQG VKHDU UHFRJQLWLRQ
7DVN VKDULQJ IRU HIIHFWLYH FURVVFKHFN DQG )LJXUH

EDFNXS SDUWLFXODUO\ IRU H[FHVVLYH
:LQG 6KHDU 3URILOH 7\SLFDO
SDUDPHWHUGHYLDWLRQV
(QHUJ\ PDQDJHPHQW GXULQJ DSSURDFK DQG
(OHPHQWV RI D VWDELOL]HG DSSURDFK DQG &RFNSLW 3UHSDUDWLRQ ± 'HSDUWXUH %ULHILQJ

DSSURDFK JDWHV
)OLJKW FUHZ VKRXOG FRQVLGHU DOO DYDLODEOH ZLQG VKHDU
x :LQG VKHDU VXUYLYDO HVFDSH SURFHGXUH DZDUHQHVVLWHPV DQG
5HDGLQHVV DQG FRPPLWPHQW WR UHVSRQG WR

D UHDFWLYH RU SUHGLFWLYH ZLQG VKHDU DGYLVRU\
x $VVHVV WKH FRQGLWLRQV IRU D VDIH WDNHRII EDVHG
RQ
RU ZDUQLQJ DV DYDLODEOH ZLQG VKHDU VXUYLYDO
HVFDSH
0RVW UHFHQW ZHDWKHU UHSRUWV DQG IRUHFDVW
7UDLQLQJ 9LVXDO REVHUYDWLRQV DQG
$ ZLQG VKHDU DZDUHQHVV SURJUDP VKRXOG EH &UHZ H[SHULHQFH ZLWK WKH DLUSRUW
GHYHORSHG DQG LPSOHPHQWHG EDVHG RQ WKH FRQWHQWV HQYLURQPHQW DQG WKH SUHYDLOLQJ ZHDWKHU
RI FRQGLWLRQV RU
x 7KH LQGXVWU\GHYHORSHG :LQG 6KHDU (GXFDWLRQ x 'HOD\ WKH WDNHRII XQWLO FRQGLWLRQV LPSURYH DV
DQG 7UDLQLQJ $LG DQG ZDUUDQWHG
x 7KH )OLJKW 6DIHW\ )RXQGDWLRQGHYHORSHG

:LQGVKHDU 7UDLQLQJ 3DFNDJH

3DJH
7DNHRII DQG LQLWLDO FOLPE IROORZ WKH IOLJKW GLUHFWRU SLWFK RUGHUV ZLQG
VKHDU VXUYLYDO JXLGDQFH RU VHW WKH UHTXLUHG
,I ZLQG VKHDU FRQGLWLRQV DUH VXVSHFWHG GXULQJ SLWFK DWWLWXGH LI )' LV QRW DYDLODEOH DV
WDNHRII WKH IOLJKW FUHZ VKRXOG UHFRPPHQGHG LQ WKH DSSOLFDEOH )&20
x 6HOHFW WKH PRVW IDYRUDEOH UXQZD\ FRQVLGHULQJ

WKH ORFDWLRQ RI WKH OLNHO\ ZLQG VKHDU GRZQEXUVW x 'XULQJ LQLWLDO FOLPE
x 6HOHFW WKH PLQLPXP IODSV FRQILJXUDWLRQ GLVFRQQHFW WKH DXWRWKURWWOHDXWRWKUXVW

FRPSDWLEOH ZLWK WDNHRII UHTXLUHPHQWV WR $7+5 DQG PDLQWDLQ RU VHW WKH WKURWWOH
PD[LPL]H WKH FOLPEJUDGLHQW FDSDELOLW\ OHYHUV WR WKH PD[LPXP WDNHRII WKUXVW
x 8VH WKH ZHDWKHU UDGDU RU WKH SUHGLFWLYH ZLQG LI WKH DXWRSLORW $3 LV HQJDJHG NHHS WKH
VKHDU V\VWHP DV DYDLODEOH EHIRUH FRPPHQFLQJ $3 HQJDJHG
WKH WDNHRII UROO WR HQVXUH WKDW WKH IOLJKW SDWK LV
RU
FOHDU RI SRWHQWLDO KD]DUG DUHDV
IROORZ WKH )' SLWFK RUGHUV
x 6HOHFW WKH PD[LPXP WDNHRII WKUXVW
RU
x $IWHU WULJJHULQJ WKH JR OHYHUV VHWWLQJ 72*$ VHW WKH UHTXLUHG SLWFK DWWLWXGH
VHOHFW WKH IOLJKW SDWK YHFWRU GLVSOD\ RQ WKH 31) DV UHFRPPHQGHG LQ WKH DSSOLFDEOH )&20
1' DV DYDLODEOH WR REWDLQ D GLUHFW YLVXDO FXH RI

WKH FOLPE IOLJKW SDWK DQJOH DQG
OHYHO WKH ZLQJV WR PD[LPL]H FOLPE JUDGLHQW
XQOHVV D WXUQ LV UHTXLUHG IRU REVWDFOH
x &ORVHO\ PRQLWRU WKH DLUVSHHG DQG VSHHG WUHQG
FOHDUDQFH
GXULQJ WKH WDNHRII UROO WR GHWHFW DQ\ HYLGHQFH RI
LPSHQGLQJ ZLQG VKHDU
FORVHO\ PRQLWRU WKH DLUVSHHG VSHHG WUHQG
DQG IOLJKW SDWK DQJOH DV DYDLODEOH
5HFRYHU\ WHFKQLTXH IRU ZLQG VKHDU HQFRXQWHU

GXULQJ WDNHRII DOORZ DLUVSHHG WR GHFUHDVH WR VWLFN VKDNHU
DFWLYDWLRQ ERXQGDU\ LQWHUPLWWHQW VWLFN
VKDNHU DFWLYDWLRQ ZKLOH PRQLWRULQJ VSHHG
,I ZLQG VKHDU LV HQFRXQWHUHG GXULQJ WDNHRII UROO RU
WUHQG
GXULQJ LQLWLDO FOLPE DSSO\ WKH IROORZLQJ UHFRYHU\
WHFKQLTXHV ZLWKRXW GHOD\
UHIHUHQFH WR VWLFN VKDNHU DSSOLHV RQO\ WR
x %HIRUH 9 FRQYHQWLRQDO DLUFUDIW PRGHOV
UHMHFW WKH WDNHRII RQO\ LI XQDFFHSWDEOH

DLUVSHHG YDULDWLRQV RFFXU QRW H[FHHGLQJ
GR QRW FKDQJH WKH IODSV DQG JHDU
FRQILJXUDWLRQ XQWLO RXW RI WKH ZLQG VKHDU
WKH WDUJHW 9 DQG LI WKHUH LV VXIILFLHQW
FRQGLWLRQ
UXQZD\ UHPDLQLQJ WR VWRS WKH DLUSODQH
x $IWHU 9
ZKHQ RXW RI WKH ZLQG VKHDU FRQGLWLRQ
LQFUHDVH WKH DLUVSHHG ZKHQ D SRVLWLYH FOLPE
GLVFRQQHFW WKH DXWRWKURWWOHDXWRWKUXVW LV FRQILUPHG UHWUDFW ODQGLQJ JHDU DQG
$7+5 DQG PDLQWDLQ RU VHW WKH IODSVVODWV DV DSSOLFDEOH DQG WKHQ UHFRYHU
WKURWWOHWKUXVW OHYHUV WR WKH PD[LPXP WDNHRII D QRUPDO FOLPE SURILOH
WKUXVW
URWDWH QRUPDOO\ DW 9 5 DQG

3DJH
'HVFHQW 3UHSDUDWLRQ ± $SSURDFK DQG x 6HOHFW WKH PRVW IDYRUDEOH UXQZD\ FRQVLGHULQJ
*RDURXQG %ULHILQJ
WKH ORFDWLRQ RI WKH OLNHO\ ZLQG VKHDU
GRZQEXUVW FRQGLWLRQ DQG
$Q H[SDQGHG UHYLHZ RI WKH ZLQG VKHDUDZDUHQHVV
LWHPV WR EH FRYHUHG LQ WKH DSSURDFK EULHILQJ ± DV WKH DYDLODEOH UXQZD\ DSSURDFK DLGV
SUDFWLFDO DQG DSSURSULDWH IRU WKH FRQGLWLRQV RI WKH
IOLJKW ± LV SURYLGHG KHUHDIWHU x 8VH WKH ZHDWKHU UDGDU RU WKH SUHGLFWLYH ZLQG
VKHDU V\VWHP DV DYDLODEOH GXULQJ WKH DSSURDFK
x $7,6 WR HQVXUH WKDW WKH IOLJKW SDWK LV FOHDU RI SRWHQWLDO
KD]DUG DUHDV
5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV
5XQZD\ LQ XVH W\SH RI DSSURDFK

x 6HOHFW WKH IOLJKW SDWK YHFWRU GLVSOD\ RQ WKH 31)
1' WR REWDLQ D GLUHFW YLVXDO FXH RI WKH IOLJKW SDWK
DQJOH GXULQJ WKH DSSURDFK RU GXULQJ WKH
([SHFWHG DUULYDO URXWH VWDQGDUG DUULYDO ±
UHFRYHU\HVFDSH PDQHXYHU
67$5 RU PRUH GLUHFW UDGDU YHFWRUV
x 6HOHFW OHVV WKDQ IXOO IODSV IRU ODQGLQJ WR

3UHYDLOLQJ ZHDWKHU
PD[LPL]H WKH FOLPEJUDGLHQW FDSDELOLW\ DQG
DGMXVW WKH ILQDO DSSURDFK VSHHG DFFRUGLQJO\
5HSRUWV RI SRWHQWLDO ORZ OHYHO ZLQG VKHDU
//:$6 ZDUQLQJV 7'56 GDWD 3,5(36
x ,I DQ ,/6 LV DYDLODEOH HQJDJH WKH DXWRSLORW IRU D
PRUH DFFXUDWH DSSURDFK WUDFNLQJ DQG IRU WDNLQJ
x 8VH RI DXWRPDWLRQ EHQHILW RI WKH JOLGH VORSH H[FHVVLYHGHYLDWLRQ
ZDUQLQJ
'LVFXVV WKH LQWHQGHG XVH RI DXWRPDWLRQ IRU
YHUWLFDO DQG ODWHUDO QDYLJDWLRQ DV D IXQFWLRQ RI
x 6HOHFW D ILQDO DSSURDFK VSHHG EDVHG RQ WKH
WKH VXVSHFWHG RU IRUHFDVW ZLQG VKHDU FRQGLWLRQV
UHSRUWHG VXUIDFH ZLQG
'HVFHQW DQG $SSURDFK $ VSHHG LQFUHPHQW LV UHFRPPHQGHG XVXDOO\ XS

WR NW WR NW EDVHG RQ WKH DQWLFLSDWHG ZLQG
%HIRUH FRQGXFWLQJ DQ DSSURDFK LQ IRUHFDVW RU VKHDU YDOXH
VXVSHFWHG ZLQG VKHDU FRQGLWLRQV WKH IOLJKW FUHZ
VKRXOG x &RPSDUH WKH KHDG ZLQG FRPSRQHQW RU WDLO ZLQG
FRPSRQHQW DORIW DQG WKH VXUIDFH KHDG ZLQG RU
x $VVHVV WKH FRQGLWLRQV IRU D VDIH DSSURDFK DQG
WDLO ZLQG FRPSRQHQW WR DVVHVV WKH SRWHQWLDO DQG
ODQGLQJ EDVHG RQ
OLNHO\ GHJUHH RI YHUWLFDO ZLQG VKHDU
0RVW UHFHQW ZHDWKHU UHSRUWV DQG IRUHFDVW
x &ORVHO\ PRQLWRU WKH DLUVSHHG VSHHG WUHQG DQG
9LVXDO REVHUYDWLRQV DQG
JURXQG VSHHG GXULQJ WKH DSSURDFK WR GHWHFW DQ\
&UHZ H[SHULHQFH ZLWK WKH DLUSRUW HYLGHQFH RI LPSHQGLQJ ZLQG VKHDU
HQYLURQPHQW DQG WKH SUHYDLOLQJ ZHDWKHU

0LFUREXUVWV DUH FKDUDFWHUL]HG E\ D VLJQLILFDQW
FRQGLWLRQV
LQFUHDVH RI WKH KHDGZLQG FRPSRQHQW SUHFHGLQJ
x 'HOD\ WKH DSSURDFK DQG ODQGLQJ XQWLO FRQGLWLRQV D VXGGHQ FKDQJH WR D WDLOZLQG FRPSRQHQW
LPSURYH RU GLYHUW WR D VXLWDEOH DLUSRUW ZKHQHYHU ZLQG VKHDU LV DQWLFLSDWHG FORVHO\

PRQLWRU WKH JURXQG VSHHG HQKDQFHG ZLQG VKHDU
:KHQ GRZQEXUVW ZLQG VKHDU FRQGLWLRQV DUH DZDUHQHVV
DQWLFLSDWHG EDVHG RQ SLORW¶V UHSRUWV IURP
SUHFHGLQJ DLUFUDIW RU EDVHG RQ DQ DOHUW LVVXHG E\ ,I JURXQG VSHHG GHFUHDVHV LH LQFUHDVLQJ
WKH DLUSRUW ORZ OHYHO ZLQG VKHDU DOHUW V\VWHP KHDG ZLQG PDLQWDLQ D JURXQG VSHHG QRW ORZHU
//:$6 WKH ODQGLQJ VKRXOG EH GHOD\HG RU WKH WKDQ 9 $33 ± NW WR PDLQWDLQ WKH DLUFUDIW
DLUFUDIW VKRXOG GLYHUW WR WKH GHVWLQDWLRQ DOWHUQDWH HQHUJ\ OHYHO LQ FDVH RI VXGGHQ KHDG ZLQG WR WDLO
DLUSRUW ZLQG FKDQJH

3DJH
x %H DOHUW WR UHVSRQG ZLWKRXW GHOD\ WR )DFWRUV $IIHFWLQJ :LQG 6KHDU $ZDUHQHVV

$Q\ SUHGLFWLYH ZLQGVKHDU DGYLVRU\ :6 7KH IROORZLQJ IDFWRUV PD\ DIIHFW WKH ZLQG VKHDU
$+($' FDXWLRQ RU :6 $+($' ZDUQLQJ DZDUHQHVV DQG DYRLGDQFH RU WKH VXUYLYDO FDSDELOLW\
DQGRU
3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG
$ UHDFWLYH :,1'6+($5 ZDUQLQJ EH GHYHORSHG WR DGGUHVV WKHVH DGYHUVH IDFWRUV
DV SRVVLEOH DQG SUDFWLFDO
x $LUFUDIW HTXLSPHQW
)RU UHVSHFWLYH :6 $+($' DQG :,1'6+($5
SURFHGXUHV UHIHU WR WKH DSSOLFDEOH )&20 DQG 45+ DEVHQFH RI UHDFWLYH DQGRU SUHGLFWLYH ZLQG
VKHDU V\VWHPV
x
5HFRYHU\ WHFKQLTXH IRU ZLQG VKHDU HQFRXQWHU $LUSRUW HTXLSPHQW
GXULQJ DSSURDFK DQG ODQGLQJ $EVHQFH RI D ORZ OHYHO ZLQG VKHDU DOHUW
V\VWHP //:$6 GHWHFWLRQ DQG ZDUQLQJ
,I ZLQG VKHDU LV HQFRXQWHUHG GXULQJ WKH DSSURDFK RU
V\VWHP DQGRU
ODQGLQJ WKH IROORZLQJ UHFRYHU\ WHFKQLTXHV VKRXOG EH
LPSOHPHQWHG ZLWKRXW GHOD\
$EVHQFH RI D WHUPLQDO 'RSSOHU UDGDU V\VWHP
x 7ULJJHU WKH JRDURXQG OHYHUV RU VHW WKUXVW 7'56
OHYHUV WR 72*$ DV DSSOLFDEOH DQG PDLQWDLQ WKH
PD[LPXP JRDURXQG WKUXVW x 7UDLQLQJ
x )ROORZ WKH )' SLWFK RUGHUV RU VHW WKH SLWFK

DWWLWXGH WDUJHW UHFRPPHQGHG LQ WKH )&20 LI
$EVHQFH RI ZLQG VKHDU DZDUHQHVV SURJUDP
DQGRU
)' LV QRW DYDLODEOH
x ,I WKH $3 LV HQJDJHG NHHS WKH $3 HQJDJHG $EVHQFH RI VLPXODWRU WUDLQLQJ IRU ZLQG VKHDU
UHFRYHU\
$V UHTXLUHG GLVFRQQHFW WKH $3 DQG IROORZ WKH
)' RUGHUV RU VHW DQG PDLQWDLQ WKH x 6WDQGDUG RSHUDWLQJ SURFHGXUHV
UHFRPPHQGHG SLWFK DWWLWXGH
x 'R QRW FKDQJH WKH IODSV DQG ODQGLQJ JHDU

,QDGHTXDWH EULHILQJV
FRQILJXUDWLRQ XQWLO RXW RI WKH ZLQG VKHDU

FRQGLWLRQ
,QDGHTXDWH PRQLWRULQJ RI IOLJKW SURJUHVV
DQGRU
x /HYHO WKH ZLQJV WR PD[LPL]H FOLPE JUDGLHQW

XQOHVV D WXUQ LV UHTXLUHG IRU REVWDFOH FOHDUDQFH ,QFRUUHFW XVH RI RU LQWHUDFWLRQ ZLWK
DXWRPDWLRQ
x $OORZ DLUVSHHG WR GHFUHDVH WR VWLFN VKDNHU
DFWLYDWLRQ ERXQGDU\ LQWHUPLWWHQW VWLFN VKDNHU x +XPDQ )DFWRUV DQG &50
DFWLYDWLRQ ± FRQYHQWLRQDO DLUFUDIW RQO\ ZKLOH
PRQLWRULQJ VSHHG WUHQG $EVHQFH RI FURVVFKHFN IRU H[FHVVLYH
SDUDPHWHUGHYLDWLRQV
x &ORVHO\ PRQLWRU WKH DLUVSHHG VSHHG WUHQG DQG
IOLJKW SDWK DQJOH LI IOLJKW SDWK YHFWRU LV DYDLODEOH
DQG GLVSOD\HG IRU WKH 31) DQG
,QDGHTXDWH EDFNXS FDOORXWV DQGRU
x :KHQ RXW RI WKH ZLQG VKHDU FRQGLWLRQ LQFUHDVH )DWLJXH
WKH DLUVSHHG ZKHQ D SRVLWLYH FOLPE LV FRQILUPHG

WKHQ HVWDEOLVK D QRUPDO FOLPE SURILOH

3DJH
6XPPDU\ RI .H\ 3RLQWV $VVRFLDWHG %ULHILQJ 1RWHV

7KH IROORZLQJ NH\ SRLQWV DQG UHFRPPHQGDWLRQV 7KH IROORZLQJ %ULHILQJ 1RWHV SURYLGH H[SDQGHG
VKRXOG EH FRQVLGHUHG LQ WKH GHYHORSPHQW RI LQIRUPDWLRQ RQ UHODWHG VXEMHFWV
FRPSDQ\ VWUDWHJLHV DQG LQLWLDWLYHV HQKDQFLQJ ZLQG
VKHDU DZDUHQHVV
x ² 2SHUDWLQJ 3KLORVRSK\ ² 623V
x ² 2SWLPXP 8VH RI $XWRPDWLRQ

.H\SRLQWV DUH JURXSHG LQWR WKH WKUHH GRPDLQV
DVVRFLDWHG ZLWK ZLQG VKHDU DZDUHQHVV $YRLGDQFH x 2SHUDWLRQV *ROGHQ 5XOHV
5HFRJQLWLRQ DQG 5HFRYHU\ (VFDSH
x ² 6WDQGDUG &DOOV
x $YRLGDQFH x ² $SSURDFK DQG *RDURXQG %ULHILQJ
$VVHVV WKH FRQGLWLRQV IRU D VDIH WDNHRII RU x ² $SSURDFK +D]DUGV $ZDUHQHVV
DSSURDFKDQGODQGLQJ EDVHG RQ DOO WKH
DYDLODEOH PHWHRURORJLFDO GDWD YLVXDO x ² %HLQJ 3UHSDUHG IRU *RDURXQG
REVHUYDWLRQV DQG RQERDUG HTXLSPHQW
'HOD\ WKH WDNHRII RU WKH DSSURDFK RU GLYHUW

WR D PRUH VXLWDEOH DLUSRUW DQG
%H SUHSDUHG DQG FRPPLWWHG IRU DQ 7KH IROORZLQJ UHJXODWRU\ UHIHUHQFHV DUH SURYLGHG WR
LPPHGLDWH UHVSRQVH WR D SUHGLFWLYH ZLQG DVVLVW WKH UHDGHU LQ D TXLFN DQG HDV\ UHIHUHQFH WR
VKHDU DGYLVRU\FDXWLRQZDUQLQJ RU WR D WKH UHODWHG UHJXODWRU\ PDWHULDO
UHDFWLYH ZLQG VKHDU ZDUQLQJ
'RF
x 5HFRJQLWLRQ
%H DOHUW WR UHFRJQL]H D SRWHQWLDO RU H[LVWLQJ x ,&$2 ± :LQGVKHDU &LUFXODU

ZLQG VKHDU FRQGLWLRQ EDVHG RQ DOO WKH
DYDLODEOH ZHDWKHU GDWD RQERDUG HTXLSPHQW x ,&$2 $QQH[ ± 3DUW , ±
DQG RQ WKH PRQLWRULQJ RI WKH DLUFUDIW IOLJKW 5HFRPPHQGDWLRQ 7XUERMHW DLUSODQHV ±
SDUDPHWHUV DQG IOLJKW SDWK DQG )RUZDUGORRNLQJ ZLQG VKHDU ZDUQLQJ V\VWHP
(QKDQFH LQVWUXPHQWV VFDQ ZKHQHYHU

SRWHQWLDO ZLQG VKHDU LV VXVSHFWHG
x )$5 ± 0DQXDO 5HTXLUHPHQWV ±
2SHUDWLRQV 0DQXDO ± &RQWHQWV
x 5HFRYHU\ (VFDSH
x )$5 ± &RFNSLW FKHFN SURFHGXUH
$YRLG ODUJH WKUXVW YDULDWLRQV RU WULP FKDQJHV

x )$5 ± $LUERUQH ZHDWKHU UDGDU
LQ UHVSRQVH WR VXGGHQ DLUVSHHG YDULDWLRQV HTXLSPHQW UHTXLUHPHQWV
)ROORZ WKH )' ZLQG VKHDU UHFRYHU\HVFDSH

x )$5 ± /RZDOWLWXGH ZLQG VKHDU V\VWHP
SLWFKJXLGDQFH RU DSSO\ WKH UHFRPPHQGHG HTXLSPHQW UHTXLUHPHQWV
)&20 UHFRYHU\HVFDSH SURFHGXUH DQG

x )$5 ± *URXQG SUR[LPLW\ ZDUQLQJ ±
0DNH PD[LPXP XVH RI DLUFUDIW HTXLSPHQW JOLGH VORSH GHYLDWLRQ DOHUWLQJ V\VWHP
VXFK DV WKH IOLJKW SDWK YHFWRU DV DYDLODEOH

x )$5 E ± 3LORWV ,QLWLDO WUDQVLWLRQ
DQG XSJUDGH IOLJKW WUDLQLQJ ± :LQG VKHDU
PDQHXYHUV

3DJH
x )$5 ± )OLJKW FUHZPHPEHU GXWLHV

2WKHU 5HIHUHQFHV
VWHULOH FRFNSLW UXOH
7KH LQGXVWU\GHYHORSHG :LQG 6KHDU 7UDLQLQJ $LG
VKRXOG EH XVHG WR IXUWKHU LOOXVWUDWH DQG FRPSOHPHQW
x )$5 ± )DPLOLDULW\ ZLWK ZHDWKHU
WKH LQIRUPDWLRQ FRQWDLQHG LQ WKHVH %ULHILQJ 1RWHV
FRQGLWLRQV
7KH WZRYROXPH :LQG 6KHDU 7UDLQLQJ $LG LV
x )$$ ± $& 3LORW :LQG 6KHDU *XLGH DYDLODEOH IURP
86 1DWLRQDO 7HFKQLFDO ,QIRUPDWLRQ 6HUYLFH
17,6
3RUW 5R\DO 5RDG

6SULQJILHOG 9$ 86$
7HOHSKRQH 86

RU

)D[
,QWHUQHW VLWH KWWWSZZZQWLVJRY

3DJH
&KDSWHU
5HDGLQHVVDQG&RPPLWPHQWWR*RDURXQG
%HLQJ3UHSDUHGWR*R$URXQG

)DLOXUH WR UHFRJQL]H WKH QHHG IRU DQG WR H[HFXWH D 0RUH WKDQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV
JRDURXQG DQG PLVVHGDSSURDFK ZKHQ DSSURSULDWH FRQWDLQ HOHPHQWV ZKLFK VKRXOG KDYH EHHQ
LV D PDMRU FDXVH RI DSSURDFKDQGODQGLQJ UHFRJQL]HG E\ WKH FUHZ DV LPSURSHU DQG ZKLFK
DFFLGHQWV VKRXOG KDYH SURPSWHG D JRDURXQG
%HFDXVH D JRDURXQG LV QRW D IUHTXHQW RFFXUUHQFH ,QDGHTXDWH DVVHUWLYHQHVV DQGRU GHFLVLRQPDNLQJ
WKH LPSRUWDQFH RI EHLQJ JRDURXQGSUHSDUHG DQG DUH FDXVDO IDFWRUV LQ RI HYHQWV
EHLQJ JRDURXQGPLQGHG PXVW EH HPSKDVL]HG
,Q RQO\ RI UXVKHG DQG XQVWDELOL]HG DSSURDFKHV
7R EH JRDURXQGSUHSDUHG DQG JRDURXQGPLQGHG DQDO\]HG E\ WKH DSSURDFKDQGODQGLQJ DFFLGHQWV
WKH IOLJKW FUHZ VKRXOG UHGXFWLRQ WDVN IRUFH WKH IOLJKW FUHZ LQLWLDWHG
x +DYH D FOHDU PHQWDO LPDJH RI DSSOLFDEOH
D JRDURXQG ZKHQ FRQGLWLRQV FOHDUO\ GLFWDWHG WKDW
EULHILQJV VHTXHQFHV RI DFWLRQV WDVN VKDULQJ D JRDURXQG ZDV UHTXLUHG E\
VWDQGDUG FDOOV DQG H[FHVVLYHGHYLDWLRQ FDOORXWV x $Q XQVWDELOL]HG DSSURDFK
x %H UHDG\ WR DEDQGRQ WKH DSSURDFK LI

x ([FHVVLYH JOLGHVORSH DQGRU ORFDOL]HU GHYLDWLRQ
&HLOLQJ DQGRU YLVLELOLW\ 595 DUH EHORZ WKH
UHTXLUHG ZHDWKHU PLQLPXPV x $EVHQFH RI DGHTXDWH YLVXDO UHIHUHQFHV DW WKH
&ULWHULD IRU D VWDELOL]HG DSSURDFK DUH QRW
0'$+ RU '$+
DFKLHYHG x &RQIXVLRQ UHJDUGLQJ DLUFUDIW SRVLWLRQ DQGRU
'RXEW H[LVWV DERXW WKH DLUFUDIW SRVLWLRQ
DQGRU x $XWRPDWLRQLQWHUDFWLRQ
&RQIXVLRQ H[LVWV DERXW WKH XVH RI
DXWRPDWLRQ
2SHUDWLRQDO 5HFRPPHQGDWLRQV
x $IWHU WKH JRDURXQG LV LQLWLDWHG EH IXOO\
FRPPLWWHG WR IO\ WKH SXEOLVKHG PLVVHGDSSURDFK
SURFHGXUH 7DVN 6KDULQJ
7KH FKDLQ RI HYHQWV UHVXOWLQJ LQ D JRDURXQG RIWHQ 6WULFW DGKHUHQFH WR WKH GHILQHG 3)31) WDVN VKDULQJ
VWDUWV DW WKH WRSRIGHVFHQW WKLV %ULHILQJ 1RWH LV WKH PRVW LPSRUWDQW IDFWRU WR FRQGXFW D VDIH
WKHUHIRUH SURYLGHV DQ RYHUYLHZ RI RSHUDWLRQDO JRDURXQG WKLV LQFOXGHV WDVN VKDULQJ IRU
UHFRPPHQGDWLRQV VWDUWLQJ IURP WKH GHVFHQW x +DQG IO\LQJ RU IO\LQJ ZLWK $3 HQJDJHG DQGRU
SUHSDUDWLRQ DQG DSSURDFK EULHILQJ x 1RUPDO RSHUDWLRQ RU DEQRUPDO HPHUJHQF\
FRQGLWLRQV
%HLQJ 3UHSDUHG WR *R $URXQG

3DJH
7KH IROORZLQJ %ULHILQJ 1RWHV SURYLGH H[SDQGHG &RQFHSW RI QH[W WDUJHW

LQIRUPDWLRQ RQ 3) 31) WDVN VKDULQJ
7KURXJKRXW WKH HQWLUH IOLJKW D QH[W WDUJHW VKRXOG EH
x ² 2SHUDWLQJ 3KLORVRSK\ 623V GHILQHG DW DOO WLPHV WR VWD\ DKHDG RI WKH DLUFUDIW
'XULQJ WKH GHVFHQW DSSURDFK DQG ODQGLQJ SKDVHV
x 6WDQGDUG &DOOV VXFFHVVLYH QH[W WDUJHWV VKRXOG EH GHILQHG DQG
LPPHGLDWH FRUUHFWLYH DFWLRQV VKRXOG EH WDNHQ LI LW
x )O\LQJ D 0DQXDO *RDURXQG DQWLFLSDWHG WKDW RQH HOHPHQW RI WKH QH[W WDUJHW
ZRXOG QRW EH DFKLHYHG
x $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV
5HIHU WR %ULHILQJ 1RWH 'HVFHQW 3URILOH

'HVFHQW 3UHSDUDWLRQ 0DQDJHPHQW IRU GHWDLOHG LQIRUPDWLRQ
7KH GHVFHQW SUHSDUDWLRQ DQG WKH DSSURDFK JR

DURXQG EULHILQJ VKRXOG EH SODQQHG DQG FRQGXFWHG LQ 'HVFHQW 0RQLWRULQJ
D WLPHO\ PDQQHU LQ RUGHU WR SUHYHQW DQ\ GHOD\ LQ WKH
LQLWLDWLRQ RI WKH GHVFHQW DQG DQ\ UXVK LQ WKH 7KH GHVFHQW SURILOH VKRXOG EH PRQLWRUHG XVLQJ DOO
PDQDJHPHQW RI WKH GHVFHQW SURILOH DYDLODEOH LQVWUXPHQW UHIHUHQFHV HJ LQFOXGLQJ WKH
)06 YHUWLFDO GHYLDWLRQ DV DSSOLFDEOH
$SSURDFK *RDURXQG %ULHILQJ

,I IOLJKW SDWK LV VLJQLILFDQWO\ DERYH WKH GHVLUHG
GHVFHQW SURILOH HJ EHFDXVH RI $7& FRQVWUDLQW RU
7R EH JRDURXQG SUHSDUHG D IRUPDO JRDURXQG
EHFDXVH RI D KLJKHUWKDQDQWLFLSDWHG WDLO ZLQG WKH
EULHILQJ VKRXOG EH FRQGXFWHG KLJKOLJKWLQJ WKH NH\
GHVLUHG IOLJKW SDWK FDQ EH UHFRYHUHG E\
SRLQWV RI
x *RDURXQG PDQHXYHU DQG x 0DLQWDLQLQJ D KLJK DLUVSHHG DV ORQJ DV

SUDFWLFDO
x 3XEOLVKHG PLVVHGDSSURDFK SURFHGXUH
x 8VLQJ VSHHG EUDNHV

7KH JRDURXQG SDUW RI WKH DSSURDFK EULHILQJ VKRXOG
UHFDOO WKH IROORZLQJ NH\ DVSHFWV
x ([WHQGLQJ WKH ODQGLQJ JHDU LI WKH XVH RI VSHHG
x 7DUJHW VWDELOL]DWLRQ SRLQW HJ EUDNHV LV QRW VXIILFLHQW DQG
IW DERYH DLUILHOG HOHYDWLRQ x $V D ODVW UHVRUW SHUIRUP D GHJUHH WXUQ DV
QDXWLFDO PLOH IURP WRXFKGRZQ DQG

SUDFWLFDO DQG FOHDUHG E\ $7&
FOHDQ PDQHXYHULQJ VSHHG JUHHQ GRW ,I WKH GHVLUHG GHVFHQW IOLJKW SDWK FDQQRW EH
VSHHG UHFRYHUHG $7& VKRXOG EH QRWLILHG IRU WLPHO\
FRRUGLQDWLRQ
x *RDURXQG VWDQGDUG FDOO HJ D ORXG DQG FOHDU
*R $URXQG )ODSV FDOO 5HIHU WR %ULHILQJ 1RWHV IRU H[SDQGHG LQIRUPDWLRQ
x 3) 31) WDVN VKDULQJ LH IORZ RI UHVSHFWLYH

DFWLRQV LQFOXGLQJ GHVLUHG JXLGDQFH ± PRGH x 'HVFHQW 3URILOH 0DQDJHPHQW DQG
HQJDJHPHQW ± VSHHG WDUJHW JRDURXQG DOWLWXGH

GHYLDWLRQV FDOORXW DQG x (QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK
x 0LVVHGDSSURDFK YHUWLFDO DQG ODWHUDO QDYLJDWLRQ

LQFOXGLQJ VSHHG DQG DOWLWXGH UHVWULFWLRQV
6HH DOVR %ULHILQJ 1RWH ² $SSURDFK DQG

*RDURXQG %ULHILQJV IRU H[SDQGHG LQIRUPDWLRQ

3DJH
)LQDO $SSURDFK 6XPPDU\ RI NH\ SRLQWV

%HFDXVH WKH DSSURDFK EULHILQJ LV SHUIRUPHG DW WKH %HFDXVH D JRDURXQG LV QRW D IUHTXHQW RFFXUUHQFH
HQG RI FUXLVH WKH FUHZ PD\ EULHIO\ UHFDOO WKH PDLQ WKH LPSRUWDQFH RI EHLQJ JRDURXQGSUHSDUHG DQG
SRLQWV RI WKH JRDURXQG DQG PLVVHGDSSURDFK DW DQ JRDURXQGPLQGHG VKRXOG EH HPSKDVL]HG
DSSURSULDWH WLPH GXULQJ WKH ILQDO DSSURDFK
,I WKH FULWHULD IRU D VDIH FRQWLQXDWLRQ RI WKH DSSURDFK

:KHQ IO\LQJ ZLWK WKH $3 HQJDJHG WKH IROORZLQJ DUH QRW PHW WKH FUHZ VKRXOG EH
DVSHFWV VKRXOG EH FRQVLGHUHG WR EH UHDG\ WR WDNH JRDURXQGFRPPLWWHG LQLWLDWH D JRDURXQG DQG IO\
RYHU PDQXDOO\ WKH SXEOLVKHG PLVVHGDSSURDFK
x 6HDW DQG DUPUHVW DGMXVWPHQW WKLV LV RI SULPDU\

LPSRUWDQFH IRU DQ HIIHFWLYH KDQGOLQJ RI WKH
DLUFUDIW LQ D G\QDPLF SKDVH RI IOLJKW DQG $VVRFLDWHG %ULHILQJ 1RWHV
x )O\LQJ ZLWK RQH KDQG RQ WKH FRQWURO ZKHHO RU 7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG WR
VLGH VWLFN DV DSSOLFDEOH DQG RQH KDQG RQ WKH FRPSOHPHQW WKH DERYH LQIRUPDWLRQ
WKURWWOH OHYHUV WKUXVW OHYHUV
x )O\LQJ D 0DQXDO *RDURXQG

*RDURXQG 7UDQVLWLRQ EDFN WR ,0&
7KH PRVW IUHTXHQW UHDVRQ IRU SHUIRUPLQJ
D JRDURXQG LV UHODWHG WR ZHDWKHU PLQLPD
:KHQ DSSURDFKLQJ WKH 0'$+ RU WKH '$+ RQH

FUHZPHPEHU LV DWWHPSWLQJ WR DFTXLUH WKH UHTXLUHG
x 6WDQGDUG &DOOV
YLVXDO UHIHUHQFHV 'XULQJ WKLV SHULRG RI WLPH WKLV
FUHZPHPEHU LV LQ DOPRVWYLVXDO IO\LQJ FRQGLWLRQV x $SSURDFK DQG *RDURXQG %ULHILQJV
7KH WDVN VKDULQJ IRU WKH DFTXLVLWLRQ RI YLVXDO x 'HVFHQW DQG $SSURDFK 3URILOH
UHIHUHQFHV LV GLVFXVVHG DQG H[SDQGHG LQ %ULHILQJ
0DQDJHPHQW
1RWH $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

,I D JRDURXQG LV LQLWLDWHG DQ LPPHGLDWH WUDQVLWLRQ
EDFN WR LQVWUXPHQW IO\LQJ PXVW WDNH SODFH
$SSURDFK
7KH RWKHU FUHZPHPEHU WKHUHIRUH PXVW PDLQWDLQ x )O\LQJ 6WDELOL]HG $SSURDFKHV
LQVWUXPHQW UHIHUHQFHV DQG EH UHDG\ WR PDNH
DSSURSULDWH FDOORXWV LI RQH IOLJKW SDUDPHWHU VSHHG x $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV
SLWFK DWWLWXGH EDQN DQJOH WKUXVW GHYLDWHV IURP WKH
QRUPDO DQG VDIH YDOXH
7R HDVH WKLV WUDQVLWLRQ DOO HIIRUWV VKRXOG EH PDGH WR

LQLWLDWH WKH JRDURXQG ZLWK ZLQJV OHYHO DQG ZLWK
QR UROO UDWH
$HURSODQHV $SSHQGL[
7KLV WUDQVLWLRQ IURP DOPRVW90& EDFN WR ,0& GRHV
QRW DSSO\ ZKHQ D &$37)2 WDVN VKDULQJ LV
LPSOHPHQWHG LQ DFFRUGDQFH ZLWK WKH FRQFHSW NQRZQ
DV 6KDUHG DSSURDFK RU 0RQLWRUHG DSSURDFK RU
'HOHJDWHG KDQGOLQJ DSSURDFK
WKLV FRQFHSW LV GHVFULEHG LQ %ULHILQJ 1RWH x ,&$2 ± 0DQXDO RI $OO:HDWKHU 2SHUDWLRQV

'RF

3DJH

UHTXLUHPHQW IRU LPPHGLDWH JRDURXQG LQ FDVH RI
ORVV RI YLVXDO UHIHUHQFHV ZKHQ EHORZ 0'$+ RU
'$+ GXULQJ D QRQSUHFLVLRQ RU &$7 , ,/6
DSSURDFK
x )$5 ± &DWHJRU\ ,, DQG ,,, RSHUDWLRQV

*HQHUDO RSHUDWLQJ UXOHV ± UHTXLUHPHQW IRU
LPPHGLDWH JRDURXQG LQ FDVH RI ORVV RI YLVXDO
UHIHUHQFHV ZKHQ EHORZ '$+ GXULQJ D &$7 ,,
RU &$7 ,,, ,/6 DSSURDFK
x )$$ $& $ ± 3LORW¶V 6SDWLDO 'LVRULHQWDWLRQ

3DJH
)O\LQJD0DQXDO*RDURXQG
,QWURGXFWLRQ 5HFRPPHQGDWLRQV
%HFDXVH D JRDURXQG LV QRW D IUHTXHQW RFFXUUHQFH 3) 31) 7DVN 6KDULQJ
WKH LPSRUWDQFH RI EHLQJ JRDURXQGSUHSDUHG DQG
JRDURXQGPLQGHG PXVW EH HPSKDVL]HG 6WULFW DGKHUHQFH WR WDVNVKDULQJ SULQFLSOHV LV
SDUWLFXODUO\ LPSRUWDQW LQ WKH YHU\ G\QDPLF SKDVH
7R EH JRDURXQGSUHSDUHG DQG JRDURXQGPLQGHG DVVRFLDWHG ZLWK LQLWLDWLQJ D JRDURXQG
WKH IOLJKW FUHZ VKRXOG
7KH 3) LV UHVSRQVLEOH IRU FRQWUROOLQJ WKH YHUWLFDO
x +DYH D FOHDU PHQWDO LPDJH RI DSSOLFDEOH
IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK DQG
EULHILQJV VHTXHQFHV RI DFWLRQV WDVN VKDULQJ
IRU HQHUJ\ PDQDJHPHQW E\ HLWKHU
VWDQGDUG FDOOV DQG H[FHVVLYHGHYLDWLRQ FDOORXWV
x 6XSHUYLVLQJ WKH DXWRSLORW YHUWLFDO JXLGDQFH DQG
x %H UHDG\ WR DEDQGRQ WKH DSSURDFK LI ODWHUDO JXLGDQFH DQG WKH DXWRWKURWWOHDXWRWKUXVW
RSHUDWLRQ LH DZDUHQHVV RI WKH PRGHV EHLQJ
&HLOLQJ DQGRU YLVLELOLW\ 595 DUH EHORZ WKH DUPHG RU HQJDJHG DQG RI PRGH FKDQJHV DQG
UHTXLUHG PLQLPXPV DZDUHQHVV RI VHOHFWHG WDUJHWV
RU
&ULWHULD IRU D VWDELOL]HG DSSURDFK DUH QRW
DFKLHYHG x )O\LQJ PDQXDOO\ ZLWK )' JXLGDQFH
,I PDQXDO WKUXVW LV VHOHFWHG WKH 31) VKRXOG

'RXEW H[LVWV DERXW WKH DLUFUDIW SRVLWLRQ
PRQLWRU WKH VSHHG VSHHG WUHQG DQG WKUXVW
DQGRU
FORVHO\ DQG FDOO DQ\ SDUDPHWHU H[FHVVLYH
GHYLDWLRQ
&RQIXVLRQ H[LVWV DERXW WKH XVH RI
DXWRPDWLRQ
7KH 31) LV UHVSRQVLEOH IRU PRQLWRULQJ WDVNV DQG IRU
6HH DOVR %ULHILQJ 1RWH %HLQJ 3UHSDUHG IRU SHUIRUPLQJ WKH DFWLRQV UHTXHVWHG E\ WKH 3) WKLV
LQFOXGHV
*RDURXQG
x 0RQLWRULQJ YHUWLFDO VSHHG DQG UDGLR DOWLWXGH

,I WKH FRQGLWLRQV IRU D VDIH DSSURDFK DQG ODQGLQJ DUH
QRW PHW WKH IOLJKW FUHZ VKRXOG EH
JRDURXQGFRPPLWWHG LQLWLDWH D JRDURXQG DQG IO\
x 0RQLWRULQJ SLWFK DWWLWXGH EDQN DQJOH VSHHG DQG
VSHHG WUHQG DQG FDOOLQJ DQ\ SDUDPHWHU
WKH PLVVHGDSSURDFK SURFHGXUH DV SXEOLVKHG
H[FHVVLYHGHYLDWLRQ
LH IROORZLQJ WKH SXEOLVKHG YHUWLFDO SURILOH DQG
ODWHUDO QDYLJDWLRQ RU DV GLUHFWHG E\ $7&
x 0RQLWRULQJ WKUXVW
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI WKH IO\LQJ

WHFKQLTXHV DQG SURFHGXUHV UHFRPPHQGHG IRU x 623 DFWLRQV DQG QRUPDO FKHFNOLVWV
WKH VDIH FRQGXFW RI D PDQXDO JRDURXQG

3DJH
x $FWLRQV RQ )&8 RU )06 &'8 ZKHQ LQ PDQXDO $V D UHVXOW RI WKHVH WKUHH QRVH XS HIIHFWV
IOLJKW DQG
x 7KH SLWFK DWWLWXGH DQG SLWFK UDWH LQFUHDVH DQG
x $EQRUPDO RU HPHUJHQF\ FKHFNOLVWV (&$0
DFWLRQV DQGRU 45+ SURFHGXUHV x 7KH QRVH XS SLWFKIRUFH UHTXLUHG WR PDLQWDLQ
WKH WDUJHW SLWFK DWWLWXGH GHFUHDVHV XQWLO D QRVH
GRZQ SLWFK IRUFH LV UHTXLUHG WR SUHYHQW IURP
8QGHUVWDQGLQJ WKH IOLJKW G\QDPLFV UHDFKLQJ DQ H[FHVVLYH SLWFK DWWLWXGH
RI WKH JR DURXQG
7R PDLQWDLQ WKH GHVLUHG SLWFK DWWLWXGH WDUJHW DQG

1RWH
SUHYHQW H[FHHGLQJ WKLV WDUJHW WKH 3) PXVW
7KH IROORZLQJ RYHUYLHZ DQG GLVFXVVLRQ PDLQO\ DSSO\ WKHUHIRUH
WR FRQYHQWLRQDO DLUFUDIW PRGHOV 1HYHUWKHOHVV
WKH EDVLF SULQFLSOHV RI IOLJKW DQG SLWFKLQJ HIIHFWV x 5HOHDVH WKH EDFNZDUG QRVH XS LQSXW RQ WKH
QHHG WR EH XQGHUVWRRG E\ SLORWV RSHUDWLQJ DLUFUDIW FRQWURO FROXPQ VLGH VWLFN
PRGHOV ZLWK IO\E\ZLUH FRQWUROV DQG SURWHFWLRQV
x $SSO\ SURJUHVVLYHO\ DQ LQFUHDVLQJ IRUZDUG QRVH

'XULQJ URWDWLRQ IRU WDNHRII WKH DLUFUDIW LV GRZQ LQSXW RQ WKH FRQWURO FROXPQ VLGH VWLFN
SUHWULPPHG DQG WKH WKUXVW LV DOUHDG\ VHW DV WKH WKUXVW LQFUHDVHV DQG
7KH LQLWLDWLRQ RI D JRDURXQG LQYROYHV D YHU\ x 5HWULP WKH DLUFUDIW QRVH GRZQ DV QHFHVVDU\
G\QDPLF VHTXHQFH RI DFWLRQV DQG FKDQJHV
RQ FRQYHQWLRQDO DLUFUDIW PRGHOV RQO\
LH WKUXVW LQFUHDVH FRQILJXUDWLRQ FKDQJH DIIHFWLQJ
WKH SLWFK EDODQFH
7KH 3) VKRXOG VLPSO\ IO\ WKH DLUFUDIW ZKLOH

7KHVH HIIHFWV DUH DPSOLILHG
FORVHO\ PRQLWRULQJ WKH 3)'
x $W ORZ JURVVZHLJKW ORZ DOWLWXGH DQG ORZ RXWVLGH

DLU WHPSHUDWXUH KHQFH DW KLJK WKUXVWWRZHLJKW ,I WKH SLWFK LV QRW SRVLWLYHO\ FRQWUROOHG
UDWLR DQGRU WKH SLWFK DWWLWXGH FRQWLQXHV WR LQFUHDVH XQWLO D
VLJQLILFDQW VSHHG ORVV RFFXUV GHVSLWH WKH JRDURXQG
x :LWK DOOHQJLQHVRSHUDWLYH DV FRPSDUHG WR D WKUXVW
RQHHQJLQHLQRSHUDWLYH JRDURXQG
)O\LQJ D PDQXDO JRDURXQG PDQHXYHU

:KHQ LQLWLDWLQJ D JRDURXQG DW '$+ WKH 3) LV
H[SHFWHG WR PLQLPL]H WKH DOWLWXGH ORVV
7R FRQGXFW D VDIH JRDURXQG WKH IOLJKW FUHZ VKRXOG
SULRULWL]H WKH HOHPHQWV RI WKH IROORZLQJ 3V UXOH

7KHUHIRUH WKH 3) PXVW VLPXOWDQHRXVO\ DSSO\ D QRVH
XS SLWFK FRPPDQG RQ WKH FRQWURO FROXPQ VLGH VWLFN x 3LWFK
DQG WULJJHU WKH JRDURXQG OHYHUV VHW 72*$
VHW DQG PDLQWDLQ WKH WDUJHW SLWFK DWWLWXGH
x 7KLV ILUVW QRVH XS HOHYDWRU LQSXW LQLWLDWHV D SLWFK

DWWLWXGH FKDQJH WKDW PLQLPL]HV WKH DOWLWXGH ORVV
x 3RZHU
VHW DQG FKHFN WKH JRDURXQG WKUXVW DQG

x :LWKLQ D IHZ VHFRQGV WKH WKUXVW LQFUHDVH
FUHDWHV DQ DGGLWLRQDO QRVH XS HIIHFW EHFDXVH RI x 3HUIRUPDQFH
WKH SLWFKLQJ HIIHFW RI XQGHUZLQJPRXQWHG
HQJLQHV FKHFN WKH DLUFUDIW SHUIRUPDQFH SRVLWLYH UDWH
RI FOLPE VSHHG DW RU DERYH 9 $33 VSHHG
x 5HWUDFWLQJ RQH VWHS RI IODSV DOVR UHVXOWV LQ EUDNHV UHWUDFWHG UDGLRDOWLPHWHU DQG EDUR
DOWLPHWHU LQGLFDWLRQV LQFUHDVLQJ ZLQJV OHYHO

D VOLJKW QRVH XS SLWFKLQJ HIIHFW
QR UROO UDWH JHDU XS IODSV DV UHTXLUHG

3DJH
7KH RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WDVN VKDULQJ x 'R QRW DOORZ WKH SLWFK DWWLWXGH WR H[FHHG
IRU WKH VDIH FRQGXFW RI D PDQXDO JRDURXQG FDQ EH DQ XOWLPDWH YDOXH HJ GHJUHHV EHFDXVH
H[SDQGHG DV IROORZV D VLJQLILFDQW VSHHG ORVV ZRXOG RFFXU
,I D KLJK SLWFK DWWLWXGH LV LQDGYHUWHQWO\ UHDFKHG

)RU WKH 3)
DQ LPPHGLDWH DQG ILUP HOHYDWRU QRVH GRZQ LQSXW
WRJHWKHU ZLWK D QRVH GRZQ SLWFK WULP RUGHU RQ
x :KHQ FDOOLQJ ³ *RDURXQG )ODSV ³ ZLWKRXW
FRQYHQWLRQDO DLUFUDIW PRGHOV PXVW EH DSSOLHG WR
GHOD\
UHFRYHU WKH WDUJHW SLWFK DWWLWXGH
WULJJHU WKH JRDURXQG OHYHUV VHW 72*$ DQG

IROORZWKURXJK WKH $7+5 RSHUDWLRQ
)RU WKH 31)
URWDWH DW WKH VDPH UDWH DV IRU D WDNHRII
URWDWLRQ W\SLFDOO\ GHJUHHV SHU VHFRQG x :KHQ KHDULQJ WKH ³ *RDURXQG ± )ODSV ³ FDOO
ZLWKRXW GHOD\
IROORZ WKH )' 3LWFK FRPPDQG QRW H[FHHGLQJ
WKH PD[LPXP SLWFK DWWLWXGH DSSOLFDEOH IRU WKH UHWUDFW RQH VWHS RI IODSV DV DSSOLFDEOH
DLUFUDIW W\SH W\SLFDOO\ GHJUHHV
FKHFN WKH )0$

FKHFN JRDURXQG 3RZHU WKUXVW
WKUXVW YHUWLFDO DQG ODWHUDO PRGHV

FKHFN JRDURXQG 3HUIRUPDQFH
HQJDJHPHQW DQG
SRVLWLYH UDWH RI FOLPE

$3 )' HQJDJHPHQW VWDWXV
VSHHG DW RU DERYH 9 $33
VSHHG EUDNHV UHWUDFWHG
DQQRXQFH ORXGO\ WKH )0$ XQOHVV DQQRXQFHG
UDGLRDOWLPHWHU DQG EDURPHWULFDOWLPHWHU E\ 3)
LQGLFDWLRQV LQFUHDVLQJ
7+5 WKUXVW PRGH YHUWLFDO DQG ODWHUDO
ZLQJV OHYHO QR UROO UDWH
PRGHV HQJDJHG DQG
JHDU XS DQG
$3)' VWDWXV LH $3 HQJDJHG RU KDQG
IODSV DV UHTXLUHG
IO\LQJ ZLWK )' JXLGDQFH
DQQRXQFH ORXGO\ WKH )0$ FRQGLWLRQV

SHUPLWWLQJ DQQRXQFH ³ 3RVLWLYH &OLPE ³ DQG UHWUDFW WKH
ODQGLQJ JHDU RQ 3) FRPPDQG
7+5 WKUXVW PRGH YHUWLFDO DQG ODWHUDO
PRGHV HQJDJHG DQG PRQLWRU
$3)' VWDWXV LH $3 HQJDJHG RU KDQG

WKH DLUVSHHG DQG VSHHG WUHQG
IO\LQJ ZLWK )' JXLGDQFH
WKH SLWFK DWWLWXGH DQG EDQN DQJOH

x $V WKUXVW LQFUHDVHV EH SUHSDUHG WR FRXQWHUDFW
WKH WKUXVW QRVH XS SLWFKLQJ HIIHFW LH DSSO\ DQ
WKH WKUXVW LQFUHDVH FRQILUP WKH WKUXVW
LQFUHDVLQJ IRUZDUG SUHVVXUH ± QRVHGRZQ LQSXW
OLPLW PRGH DV DSSOLFDEOH DQG WKH DFWXDO
RQ WKH FRQWURO FROXPQVLGH VWLFN
WKUXVW RQ 1(35 LQGLFDWRUV
x 7ULP WKH DLUFUDIW QRVH GRZQ DV UHTXLUHG

FRQYHQWLRQDO DLUFUDIW PRGHOV RQO\

3DJH
FRQWLQXH PRQLWRULQJ WKH IOLJKW SDUDPHWHUV DQG 6WULFW DGKHUHQFH WR WKH GHILQHG 3) 31) WDVN
FDOO DQ\ H[FHVVLYH SDUDPHWHU GHYLDWLRQ VKDULQJ DQG WR FUHZ UHVRXUFHV PDQDJHPHQW
SULQFLSOHV VKRXOG EH HPSKDVL]HG IRU
³ VSHHG ³ LI DLUVSHHG GHFUHDVHV EHORZ
x 0RQLWRULQJ RI IOLJKW DQG FDOORXW RI DQ\ IOLJKW
9 $33 ± NW
SDUDPHWHU H[FHVVLYHGHYLDWLRQ RU
³ VSHHG WUHQG ³ LI QHJDWLYH x 0DQDJHPHQW RI DQ\ ZDUQLQJ RU RWKHU

XQH[SHFWHG RFFXUUHQFHV
³ SLWFK ³ LI SLWFK DWWLWXGH H[FHHGV
GHJUHHV
,I D ZDUQLQJ LV DFWLYDWHG RU LI DQ\ RWKHU DEQRUPDO
FRQGLWLRQ RFFXUV GXULQJ WKH JRDURXQG
³ EDQN ³ LI EDQN DQJOH H[FHHGV WKH 3) PXVW FRQFHQWUDWH KLVKHU DWWHQWLRQ RQ IO\LQJ
GHJUHHV GHJUHHV LI WKH PLVVHG WKH DLUFUDIW LH YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW
DSSURDFK SURFHGXUH UHTXLUHV D WXUQ SDWK
DQGRU
7KH PDQXDO JRDURXQG WHFKQLTXH PXVW

³ WKUXVW ³ LI D VLJQLILFDQW WKUXVW ORVV LV
REVHUYHG x 0LQLPL]H WKH LQLWLDO DOWLWXGH ORVV
x 3UHYHQW DQ H[FHVVLYH SLWFK DWWLWXGH E\
6XPPDU\ RI NH\ SRLQWV IROORZLQJ )' SLWFK FRPPDQGV 656 RUGHUV

QRW H[FHHGLQJ GHJUHHV SLWFK DWWLWXGH
)RU D VDIH JRDURXQG VWULFWO\ DGKHUH WR WKH IROORZLQJ
3V UXOH
FRQVLGHULQJ D GHJUHH SLWFK DWWLWXGH DV DQ
XOWLPDWH EDUULHU IURP ZKLFK WKH SLORW VKRXOG
x 3LWFK
UHWXUQ LPPHGLDWHO\
VHW DQG PDLQWDLQ WKH WDUJHW SLWFK DWWLWXGH
x 3RZHU
VHW DQG FKHFN JRDURXQG WKUXVW DQG 7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG WR
IXUWKHU H[SDQG WKH DERYH LQIRUPDWLRQ
x 3HUIRUPDQFH
FKHFN FRQILUP DLUFUDIW SHUIRUPDQFH

SRVLWLYH UDWH RI FOLPE
VSHHG DW RU DERYH 9 $33

x 6WDQGDUG &DOOV
VSHHG EUDNHV UHWUDFWHG x ² 'HVFHQW DQG $SSURDFK 0DQDJHPHQW
UDGLRDOWLPHWHU DQG EDURPHWULFDOWLPHWHU x ² (QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK

LQGLFDWLRQV LQFUHDVLQJ

ZLQJV OHYHO DQG QR UROO UDWH
JHDU XS DQG

IODSV DV UHTXLUHG

3DJH
$HURSODQHV $SSHQGL[

DQG
x ,&$2 ± 3UHSDUDWLRQV RI DQ 2SHUDWLRQV 0DQXDO

'RF
6SHHG ,I GURSSLQJ EHORZ 9 $33 NW
6SHHG WUHQG ,I QHJDWLYH
3LWFK DWWLWXGH ,I LQ H[FHVV RI QRVH XS
%DQN DQJOH ,I LQ H[FHVV RI
7KUXVW ,I VLJQLILFDQW WKUXVW ORVV
)LJXUH
([FHVVLYH 'HYLDWLRQ &DOORXWV LQ *RDURXQG

3DJH
5HVSRQVHWR*3:6²3XOO8S0DQHXYHU7UDLQLQJ
,QWURGXFWLRQ
$ W\SLFDO DZDUHQHVV DQG WUDLQLQJ SURJUDP IRU WKH )DFWRU RI (YHQWV
UHGXFWLRQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV
LQYROYLQJ FRQWUROOHGIOLJKWLQWRWHUUDLQ &),7 VKRXOG *3:6 LQVWDOOHG
LQFOXGH WKH IROORZLQJ
ODWH FUHZ UHVSRQVH RU
x (GXFDWH IOLJKW FUHZV RQ WKH IDFWRUV WKDW PD\
FDXVH &),7 LQDGHTXDWH FUHZ UHVSRQVH
x (QVXUH WKDW KRUL]RQWDO VLWXDWLRQDO DZDUHQHVV DQG *3:6 LQVWDOOHG
YHUWLFDO VLWXDWLRQDO DZDUHQHVV LV PDLQWDLQHG DW DOO QR ZDUQLQJ
WLPHV 623V
x (QVXUH WKDW IOLJKW FUHZV DWWDLQ SURILFLHQF\ LQ WKH *3:6 QRW LQVWDOOHG
H[HFXWLRQ RI WKH DSSURDFK SURFHGXUHV DQG
WHFKQLTXHV UHFRPPHQGHG IRU WKHLU DLUFUDIW W\SH 7DEOH
x 3URYLGH SLORWV ZLWK DQ DGHTXDWH XQGHUVWDQGLQJ RI *3:6 )DFWRUV LQ &),7 (YHQWV
WKH FDSDELOLW\ DQG OLPLWDWLRQV RI WKH *3:6 DQG &LUFD
(*3:6 7$:6 LQVWDOOHG RQ WKHLU DLUFUDIW DQG
x (QVXUH WKDW SLORWV DUH SURILFLHQW LQ SHUIRUPLQJ WKH
WHUUDLQ DYRLGDQFH PDQHXYHU UHTXLUHG LQ UHVSRQVH 7UDLQLQJ 3URJUDP 2XWOLQH
WR D *3:6 RU (*3:6 7$:6 ZDUQLQJ
)LJXUH DQG )LJXUH DQG DSSOLFDEOH )&20 7KH WUDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ VKRXOG
45+ HPSKDVL]HG WKH IROORZLQJ GXULQJ GHVFHQW DQG
DSSURDFK
x 6WULFW DGKHUHQFH WR 623V HJ VWDQGDUG FDOOV
6WDWLVWLFDO 'DWD WR UHLQIRUFH WKH KRUL]RQWDO VLWXDWLRQDO DZDUHQHVV
&),7 HYHQWV DFFRXQW IRU DSSUR[LPDWHO\ RI DOO DQG YHUWLFDO VLWXDWLRQDO DZDUHQHVV
DSSURDFKDQGODQGLQJ DFFLGHQWV DQG DUH WKH OHDGLQJ x 2SWLPXP XVH RI DXWRPDWHG V\VWHPV DQG FRFNSLW
FDXVH RI IDWDOLWLHV GLVSOD\V
)LJXUH VKRZV WKDW RI &),7 HYHQWV FRXOG KDYH 7KH &),7 SUHYHQWLRQWUDLQLQJ SURJUDP UHFRPPHQGHG
EHHQ DYRLGHG E\ KHUHDIWHU IXUWKHU VXSSRUWV WKHVH REMHFWLYHV
x ,QVWDOODWLRQ RI D *3:6 RU 7KLV SURJUDP LV GHVLJQHG WR EH LQWHJUDWHG LQWR WKH
VWDQGDUG WUDQVLWLRQWUDLQLQJ FRXUVH DQGRU UHFXUUHQW
x $Q LPPHGLDWH DQG DGHTXDWH UHVSRQVH WR WUDLQLQJ FRXUVH GHYHORSHG E\ $LUEXV ,QGXVWULH RU
WKH *3:6 ZDUQLQJ GHYHORSHG E\ WKH DLUOLQH¶V WUDLQLQJ GHSDUWPHQW
5HVSRQVH WR *3:67$:6 ² 3XOO8S 0DQHXYHU 7UDLQLQJ

3DJH
7KH UHFRPPHQGHG SURJUDP FRQVLVWV RI x 7KH FDSDELOLW\ VKRXOG EH SURYLGHG WR LQVHUW DQ
HOHFWURQLF PRXQWDLQ IURP WKH LQVWUXFWRU SDQHO DW
x $ FODVVURRP EULHILQJ RU D VHOIEULHILQJ VHVVLRQ
D VHOHFWHG SRLQW DKHDG RI WKH DLUFUDIW
V SUHVHQW
EDVHG RQ WKH FRQWHQWV RI
SRVLWLRQ RQ LWV SURMHFWHG IOLJKW SDWK
WKH $LUEXV ,QGXVWULH &),7 (GXFDWLRQ DQG

1HYHUWKHOHVV LQVHUWLQJ DQ HOHFWURQLF PRXQWDLQ DW
7UDLQLQJ $LG
DQ DLUSRUW WKDW GRHV QRW IHDWXUH VXFK WHUUDLQ PD\
WKH UHOHYDQW $SSURDFKDQG/DQGLQJ %ULHILQJ UHVXOW LQ WKH WUDLQHH GLVPLVVLQJ WKH (*3:6
7$:6 ZDUQLQJ DVVXPLQJ D VSXULRXV ZDUQLQJ
1RWHV DQG SUHVHQWDWLRQV
WKXV UHVXOWLQJ LQ QHJDWLYH WUDLQLQJ
WKH GHVFULSWLRQ DQG RSHUDWLRQV RI WKH

7KH VORSH DQG KHLJKW RI WKH PRXQWDLQ VKRXOG EH
DSSOLFDEOH PRGHO RI *3:6 DQG (*3:6
WDLORUHG WR WKH SDUWLFXODU DLUFUDIW SHUIRUPDQFH
7$:6 )&20 DQG 45+
FDSDELOLW\ DW D UHSUHVHQWDWLYH ZHLJKW
HJ PD[LPXP ODQGLQJ ZHLJKW VR WKDW PD[LPXP
x 7KH $LUEXV ,QGXVWULH &),7 YLGHR SURJUDP
SHUIRUPDQFH LV UHTXLUHG WR DYRLG LPSDFW
LOOXVWUDWLQJ WKH WHUUDLQ HVFDSH PDQHXYHU
WHFKQLTXHV DSSOLFDEOH WR FRQYHQWLRQDO DLUFUDIW DQG
7KH VORSH RI WKH PRXQWDLQ VKRXOG WKHUHIRUH EH
SURWHFWHG DLUFUDIW UHVSHFWLYHO\
DGMXVWDEOH XS WR DW OHDVW q GHSHQGLQJ RQ WKH
FOLPE JUDGLHQWV WKDW FDQ EH DFKLHYHG LQ WKH
x ([HUFLVHV WR EH LQFRUSRUDWHG LQ VLPXODWRU WUDLQLQJ
HVFDSH PDQHXYHU
VHVVLRQV GXULQJ WUDQVLWLRQ WUDLQLQJ DQGRU
UHFXUUHQW WUDLQLQJ
x 7R SUHYHQW QHJDWLYH WUDLQLQJ WKH VLPXODWRU PXVW
7KUHH W\SLFDO H[HUFLVHV DUH GHVFULEHG KHUHDIWHU UHDOLVWLFDOO\ UHSUHVHQW KDQGOLQJ TXDOLWLHV DQG
SHUIRUPDQFH DV WKH VSHHG UHGXFHV WR VWLFN
x $GGLWLRQDO EULHILQJ PDWHULDO WR SRLQW RXW WKH ULVN VKDNHU VSHHG RU PLQLPXP VSHHG DV DSSOLFDEOH
RI &),7 GXULQJ VWHSGRZQ QRQSUHFLVLRQ
6LPXODWRU ([HUFLVHV
DSSURDFKHV DQG WKH DGYDQWDJHV RI XVLQJ
D FRQVWDQWDQJOH VWDELOL]HG SURILOH
$OO (*3:6 7$:6 PRGHV VKRXOG EH

%ULHILQJ 1RWH ² )O\LQJ &RQVWDQW$QJOH 1RQ GHPRQVWUDWHG
3UHFLVLRQ $SSURDFK SURYLGHV H[SDQGHG
LQIRUPDWLRQ RQ WKH EHQHILWV DVVRFLDWHG ZLWK 7KH REMHFWLYH VKRXOG EH WR JDLQ DQ XQGHUVWDQGLQJ
FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFKHV RI WKH SDUDPHWHUV DQG OLPLWDWLRQV RI WKH (*3:6
7$:6 LQVWDOOHG RQ WKH DLUFUDIW W\SH
6LPXODWRU 5HTXLUHPHQWV IRU &),7 3UHYHQWLRQ 7KHVH H[HUFLVHV FDQ EH SHUIRUPHG LQ HLWKHU D IL[HG
7UDLQLQJ EDVH VLPXODWRU )%6 RU D IXOOIOLJKW VLPXODWRU ))6
7KH IROORZLQJ VFHQDULRV WR EH SHUIRUPHG LQ WKH ))6

x 7HUUDLQ VKRXOG EH LQFOXGHG LQ WKH GDWDEDVH LQ WKH DUH GHVLJQHG WR LQWURGXFH &),7 DZDUHQHVV DQG WR
YLFLQLW\ RI WKH DLUSRUWV VHOHFWHG IRU WUDLQLQJ GHPRQVWUDWH DQG SUDFWLFH WKH FRUUHFW UHVSRQVH WR
(*3:6 7$:6 ZDUQLQJV
7KH WHUUDLQ GDWDEDVH VKRXOG H[WHQG RYHU DQ DUHD
RI 10 UDGLXV FHQWHUHG RQ WKH DLUILHOG 7KHVH VFHQDULRV PD\ EH PRGLILHG LQ DFFRUGDQFH ZLWK
UHIHUHQFH SRLQW WKH LQGLYLGXDO DLUOLQH
V WUDLQLQJ UHTXLUHPHQWV RU
RSHUDWLQJ HQYLURQPHQW
7KLV VLPXODWRU YLVXDO V\VWHP VKRXOG EH DEOH WR
GLVSOD\ WKH WHUUDLQ IHDWXUHV

3DJH
$YRLGDQFH 0DQHXYHU LQ 90& (*3:6 7$:6 :DUQLQJ LQ ,0&
2EMHFWLYHV
2EMHFWLYHV
'HPRQVWUDWH
7R UHLQIRUFH DQG FRQILUP FRUUHFW UHVSRQVH WR
x (*3:6 7$:6 ZDUQLQJV DQG WKDW UHVSRQVH (*3:6 7$:6 LQ ,0& LQFOXGLQJ SLORW WHFKQLTXH
PXVW EH LPPHGLDWH DQG FUHZ FRRUGLQDWLRQ
x 3LORW SXOOXS WHFKQLTXH ZLWK VSHFLDO UHIHUHQFH WR

SLWFK IRUFH DV DSSOLFDEOH DQG SLWFK DWWLWXGH DQG %ULHILQJ
x &UHZ FRRUGLQDWLRQ DVSHFWV

$OWKRXJK WKH WUDLQHHV ZLOO NQRZ LQ DGYDQFH WKDW WKH
H[HUFLVH LV WR EH SHUIRUPHG H[SODLQ WKDW LW LV LQWHQGHG
%ULHILQJ WR VLPXODWH DQ LQDGYHUWHQW GHVFHQW EHORZ 06$ GXH WR

ORVV RI VLWXDWLRQDO DZDUHQHVV HJ EHFDXVH RI
([SODLQ WKH REMHFWLYHV SRLQW RXW WKDW WKLV LV D WUDLQLQJ D ODWHUDO QDYLJDWLRQ HUURU DQ LQFRUUHFW DOWLWXGH
H[HUFLVH WKDW LV QRW LQWHQGHG WR EH D UHDOLVWLF VHOHFWLRQ DQ LQFRUUHFW QRQSUHFLVLRQ DSSURDFK
RSHUDWLRQDO VLWXDWLRQ GHVFULEH WKH SXOOXS WHFKQLTXH SURFHGXUH RU DQ\ RWKHU IDFWRUV
UHTXLUHG IRU WKH SDUWLFXODU DLUFUDIW W\SH

)LJXUH RU )LJXUH DQG DSSOLFDEOH )&20 DQG ,QLWLDO FRQGLWLRQV
45+
(VWDEOLVK HLWKHU RQH RI WKH WZR IROORZLQJ VFHQDULRV
,QLWLDO FRQGLWLRQV
x ,QLWLDO DSSURDFK FRQILJXUDWLRQ DQG VSHHG DW RU
QHDU WKH PD[LPXP ODQGLQJ ZHLJKW LQ D VKDOORZ
(VWDEOLVK LQLWLDO DSSURDFK FRQILJXUDWLRQ DQG VSHHG
GHVFHQW RU LQ OHYHO IOLJKW DV LQ WKH ILUVW VFHQDULR
DW RU QHDU WKH PD[LPXP ODQGLQJ ZHLJKW LQ D VKDOORZ
GHVFHQW RU LQ OHYHO IOLJKW RU
x /DQGLQJ FRQILJXUDWLRQ 9 $33 DW RU QHDU

3URFHGXUH WKH PD[LPXP ODQGLQJ ZHLJKW RQ D W\SLFDO
GHJUHH JOLGH SDWK
,QVHUW DQ HOHFWURQLF PRXQWDLQ DKHDG RI WKH DLUFUDIW

WDON WR IOLJKW FUHZ WKURXJKRXW WKH PDQHXYHU LQVLVWLQJ 3URFHGXUH
RQ DQ LPPHGLDWH DQG DJJUHVVLYH UHVSRQVH
,QVHUW DQ HOHFWURQLF PRXQWDLQ DKHDG RI WKH DLUFUDIW
(QVXUH SURSHU FUHZ FRRUGLQDWLRQ ZLWK 31) FDOOLQJ WDON WR IOLJKW FUHZ WKURXJKRXW WKH PDQHXYHU LQVLVWLQJ
UDGLR DOWLWXGHV DQG WUHQG HJ IW GHFUHDVLQJ RQ DQ LPPHGLDWH DQG DJJUHVVLYH UHVSRQVH
&RQWLQXH PDQHXYHU DW PD[LPXP SHUIRUPDQFH XQWLO (QVXUH SURSHU FUHZ FRRUGLQDWLRQ ZLWK 31) FDOOLQJ
PRXQWDLQ LV FOHDUHG )LJXUH UDGLR DOWLWXGHV DQG WUHQG HJ IW GHFUHDVLQJ
7KH GXUDWLRQ RI WKH PDQHXYHU VKRXOG EH ORQJ HQRXJK &RQWLQXH PDQHXYHU DW PD[LPXP SHUIRUPDQFH XQWLO
IRU WKH SLORW WR GHPRQVWUDWH SURILFLHQF\ DW PDLQWDLQLQJ WHUUDLQ LV FOHDUHG )LJXUH WKH PDQHXYHU VKRXOG
WKH PD[LPXP FOLPE SHUIRUPDQFH EH ORQJ HQRXJK IRU WKH SLORW WR GHPRQVWUDWH
SURILFLHQF\ DW PDLQWDLQLQJ WKH PD[LPXP FOLPE
5HSHDW WKH H[HUFLVH DV QHHGHG XQWLO FUHZ SHUIRUPDQFH
SURILFLHQF\ LV DFKLHYHG
5HSHDW WKH H[HUFLVH DV QHHGHG XS WR SURILFLHQF\
'HEULHILQJ
'HEULHILQJ
5HYLHZ WKH H[HUFLVH DV DSSURSULDWH

3DJH
8QH[SHFWHG (*3:6 7$:6 ZDUQLQJ 6XPPDU\ RI NH\ SRLQWV

7KLV VFHQDULR VKRXOG EH LQFOXGHG LQ WKH /2)7 VHVVLRQ 7KH IROORZLQJ NH\ SRLQWV VKRXOG EH KLJKOLJKWHG ZKHQ
WKDW LV QRUPDOO\ SURJUDPPHG DW WKH HQG RI WKH GLVFXVVLQJ &),7 DZDUHQHVV DQG UHVSRQVH WR D
WUDQVLWLRQ FRXUVH DQG DOVR GXULQJ UHFXUUHQW WUDLQLQJ (*3:6 7$:6 ZDUQLQJ
/2)7 VHVVLRQV
x +RUL]RQWDO VLWXDWLRQDO DZDUHQHVV DQG YHUWLFDO
VLWXDWLRQDO DZDUHQHVV PXVW EH PDLQWDLQHG DW DOO
2EMHFWLYHV WLPHV )LJXUH DQG )LJXUH

x 3UHYHQWLYH DFWLRQV PXVW EH LGHDOO\ WDNHQ EHIRUH
7R PDLQWDLQ FUHZ DZDUHQHVV RI WKH &),7 KD]DUG DQG (*3:6 7$:6 ZDUQLQJ
WR FRQILUP FUHZ SURILFLHQF\ LQ UHVSRQGLQJ WR
D (*3:6 7$:6 ZDUQLQJ x 5HVSRQVH E\ 3) PXVW EH LPPHGLDWH )LJXUH
x 31) PXVW PRQLWRU DQG FDOO WKH UDGLR DOWLWXGH DQG
LWV WUHQG WKURXJKRXW WKH WHUUDLQ DYRLGDQFH
%ULHILQJ
PDQHXYHU
1RQH x 3XOOXS PDQHXYHU PXVW EH FRQWLQXHG DW

PD[LPXP FOLPE SHUIRUPDQFH XQWLO ZDUQLQJ KDV
FHDVHG DQG WHUUDLQ LV FOHDUHG DV LQGLFDWHG E\ D
,QLWLDO FRQGLWLRQV VWHDGLO\ LQFUHDVLQJ UDGLRDOWLPHWHU UHDGLQJ
)LJXUH
(VWDEOLVK HLWKHU FOHDQ FRQILJXUDWLRQ RU LQLWLDODSSURDFK
FRQILJXUDWLRQ DQG WKH DVVRFLDWHG PDQHXYHULQJ VSHHG
DW PD[LPXP ODQGLQJ ZHLJKW LQ OHYHO IOLJKW RU $VVRFLDWHG %ULHILQJ 1RWHV
GHVFHQGLQJ
DORQJ ZLWK WKH DERYH LQIRUPDWLRQ WR FRPSOHWH
3URFHGXUH WKH &),7 DZDUHQHVV DQG WUDLQLQJ SURJUDP
&OHDU WKH DLUFUDIW WR GHVFHQG WR DQ DOWLWXGH EHORZ x 2SHUDWLQJ 3KLORVRSK\ 623V
WKH 06$ RU SURYLGH UDGDU YHFWRUV WRZDUGV KLJK
JURXQG x 2SWLPXP 8VH RI $XWRPDWLRQ
,I IOLJKW FUHZ WDNH FRUUHFWLYH DFWLRQ EHIRUH DQ\ x (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV
(*3:6 7$:6 ZDUQLQJ DV H[SHFWHG
DQ HOHFWURQLF PRXQWDLQ FDQ EH LQVHUWHG DW D ODWHU x $OWLPHWHU 6HWWLQJ ² 8VH RI 5DGLR
VWDJH LQ WKH VHVVLRQ DW DQ DSSURSULDWH WLPH $OWLPHWHU
9HULI\ WKH FUHZ UHVSRQVH WR (*3:6 7$:6 DQG x $OWLWXGH GHYLDWLRQV
WKH FUHZ FRRUGLQDWLRQ GXULQJ WKH DYRLGDQFH
PDQHXYHU x 7HUUDLQ $ZDUHQHVV

'HEULHILQJ

$SSURDFKHV
x )O\LQJ 9LVXDO $SSURDFKHV

3DJH
x ,&$2 ± $QQH[ ± RSHUDWLRQ RI $LUFUDIW 3DUW , ±
$HURSODQHV $SSHQGL[
x )$5 ± 7HUUDLQ DZDUHQHVV DQG ZDUQLQJ

V\VWHP 7$:6
x )$5 7HUUDLQ DZDUHQHVV DQG ZDUQLQJ

V\VWHP 7$:6
x )$5 ± *URXQG SUR[LPLW\ ZDUQLQJ V\VWHP

*3:6 ± *OLGH VORSH GHYLDWLRQ DOHUWLQJ V\VWHP
$SSHQGLFHV )LJXUHV
)LJXUH
&),7 ± $Q (QFRXQWHU $YRLGHG
4XLWR ± (TXDGRU ± 0DUFK
)LJXUH
&UHZ UHVSRQVH WR 5$ $OHUW /LJKW DQG *3:6 :DUQLQJ
)LJXUH
5HVSRQVH WR *3:6 :DUQLQJ
&RQYHQWLRQDO $LUFUDIW 0RGHOV
)LJXUH
)O\E\ZLUH 3URWHFWHG $LUFUDIW 0RGHOV
)LJXUH
7\SLFDO 3URILOHV

3DJH
4,7
925'0(
48,72 (&8$'25
0$5,6&$/ 68&5( ,17/
925 ,/6 5:<
/2& ,42
406
925'0(
' 4,7
6 IW ' 406
3XOOXS LQLWLDWHG
3URMHFWHG LPSDFW IW
6 IW &OLPELQJ WR IW
6 IW
x ,/6 DSSURDFK 5:< 1LJKW WLPH ,0& 5DLQ
x 406 925'0( WXQHG LQVWHDG RI 4,7
x 3URFHGXUH WXUQ IORZQ ZLWK UHIHUHQFH WR 406 KHQFH 10 IXUWKHU VRXWK
x &UHZ DOHUWHG E\ IW UDGLRDOWLPHWHU OLJKW
x &UHZ UHVSRQGHG WR *3:6 0. ,, ZDUQLQJ 7HUUDLQ 7HUUDLQ 3XOO XS 3XOO XS
x *3:6 ZDUQLQJ UHPDLQHG DFWLYDWHG GXULQJ VHFRQGV
x +LJK WHUUDLQ ZDV DYRLGHG E\ RQO\ IW 5$
)LJXUH
'UDZLQJ DGDSWHG IURP ³ )OLJKW ,QWR 7HUUDLQ $QG WKH *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP ³ E\ 'RQ %DWHPDQ

3DJH
NW
7HUUDLQ DORQJ WUDFN IWPQ

$OWLWXGH IW 06/
7HUUDLQ LI IXOO SURFHGXUH WXUQ WR ULJKW GHJUHH SLWFK

0D[LPXP WKUXVW
)OLJKW SDWK

0. ,, *3:6 ZDUQLQJ '0( 406
7HUUDLQ7HUUDLQ '0( 4,7
3XOO XS 3XOO XS

5DGLDO 406
RXWERXQG
IW 5$ IW 5$

/LJKW /LJKW
IW 5$

'LVWDQFH IURP 5:< 10
)LJXUH
&UHZ UHVSRQVH WR 5$ $OHUW /LJKW DQG *3:6 :DUQLQJ
'UDZLQJ DGDSWHG IURP ³ )OLJKW ,QWR 7HUUDLQ $QG WKH *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP ³ E\ 'RQ %DWHPDQ

3DJH
³ :+223 :+223 38// 83 ³
6LPXOWDQHRXVO\
3,7&+ $77,78'( $7 /($67 q 126( 83

8VH VWLFN VKDNHU ERXQGDU\ DV XSSHU OLPLW
7+5277/(6 )8// )25:$5'
$7+5 ',6&211(&7
$8723,/27 ',6&211(&7
%$1. :,1*6 /(9(/
63(('%5$.(6 &+(&. 5(75$&7('
x :KHQ IOLJKW SDWK LV VDIH DQG *3:6 ZDUQLQJ KDV FHDVHG
'HFUHDVH SLWFK DWWLWXGH DQG DFFHOHUDWH
x :KHQ VSHHG DERYH 9 /6 DV DSSOLFDEOH DQG 96 SRVLWLYH
&OHDQ XS DLUFUDIW DV UHTXLUHG
)LJXUH
5HVSRQVH WR *3:6 :DUQLQJ ± &RQYHQWLRQDO $LUFUDIW 0RGHOV
³ :+223 :+223 38// 83 ³ ³ 7(55$,1 7(55$,1

:+223 :+223 38// 83 ³
6LPXOWDQHRXVO\
$3 2))
3,7&+ 38// 83
3XOO XS WR IXOO EDFN VWLFN DQG PDLQWDLQ
7+5867 /(9(56 72*$
63(('%5$.(6 &+(&. 5(75$&7('
%$1. :,1*6 /(9(/ RU DGMXVW
x :KHQ IOLJKW SDWK LV VDIH DQG *3:6 ZDUQLQJ KDV FHDVHG
'HFUHDVH SLWFK DWWLWXGH DQG DFFHOHUDWH
x :KHQ VSHHG DERYH 9 /6 DQG 96 SRVLWLYH
&OHDQ XS DLUFUDIW DV UHTXLUHG
)LJXUH
5HVSRQVH WR *3:6 :DUQLQJ ± )O\E\ZLUH 3URWHFWHG $LUFUDIW 0RGHOV

3DJH
$ GHJUHH *6 *HDU GRZQ

$OWLWXGH IW

0D[ /DQGLQJ :HLJKW

9 /6 NW
6HD /HYHO
6WLFN VKDNHU SLWFK DWWLWXGH

GHJUHH VHFRQG

XS WR GHJUHH SLWFK DWWLWXGH

'LVWDQFH P
$OWLWXGH IW $ GHJUHH *6 &21) )8// *HDU GRZQ

0D[ /DQGLQJ :HLJKW

9 /6 NW
6HD /HYHO

3XOO XS WR IXOO EDFN VWLFN

'LVWDQFH P
)LJXUH
7\SLFDO 3URILOHV

3DJH
AIRBUS INDUSTRIE Getting to Grips with
Flight Operations Support Approach-and-Landing Accidents Reduction
%RXQFH5HFRYHU\²5HMHFWHG/DQGLQJ
Introduction • Loss of control following a go-around initiated

after thrust reverser selection (because of a
A rejected landing (also referred to as an aborted vehicle obstructing the runway) and failure of
landing) is defined as a go-around maneuver one reverser to stow.
initiated after touchdown of the main landing gear or
after bouncing.
Touch-and-go ( training only )
Although a rare occurrence, a rejected landing is a
challenging maneuver decided and conducted in an Although a touch-an-go is essentially a training
unanticipated and unprepared manner. exercise, the conditions required for the safe
conduct of this maneuver provide a valuable
The objective of this Briefing Note is to define: introduction to the discussion of rejected landings.
• Applicable decision criteria for:
Preconditions:
− Full-stop landing; or,
Four preconditions (usually referred to as the
− Rejected landing and go-around; and, “4-No rule”) must be observed prior to initiating
a touch-and-go:
• Procedures and techniques for bounce
recovery, including: • No ground spoilers:
− Continued landing; or, − ground spoilers must not be armed or

manually selected after touchdown;
− Rejected landing (i.e., go-around).
• No autobrake:
Statistical data − autobrake must not be armed;
No global statistical data are available on rejected • No reverse:

landing incidents or accidents but the following three
− thrust reversers must not be selected upon
events illustrate the circumstances that may lead a
touchdown; and,
flight crew to reject the landing, and the possible
consequences of such a maneuver:
• No pedal braking:
• Tail strike following a go-around initiated due to
directional control difficulties after thrust − pedal braking must not be used after
reverser selection; touchdown.
• Climb performance limitation following the Performing a rejected landing in revenue service
undue selection of reverse thrust during a (i.e., with ground spoilers and autobrake armed,
touch-and-go and failure of one reverser to being ready to select reverse thrust upon
stow; and, touchdown) creates an added challenge.

Page 1
Aircraft reconfiguration: Bouncing and bounce recovery

After touchdown for a planned touch-and-go, Bouncing at landing usually is the result of one or
the aircraft must be reconfigured to a takeoff a combination of the following factors:
configuration:
• Loss of visual references;
• Flaps reset to a takeoff configuration;
• Excessive sink rate;
• Pitch trim reset within the takeoff trim setting • Late flare initiation;
range;
• Incorrect flare technique;
• Rudder trim reset (as applicable); and, • Excessive airspeed; and/or,
• Throttle/thrust levers standup, as required (for • Power-on touchdown (preventing the automatic
symmetrical engine acceleration). extension of ground spoilers, as applicable).
The bounce recovery technique depends on

the height reached during the bounce.
Task sharing:
Performing a planned touch-and-go is a dynamic Recovery from a light bounce (5 ft or less):

and demanding maneuver in terms of task sharing:
In case of a light bounced, the following typical
• The PF (trainee) is responsible for: recovery technique can be applied:
− Tracking the runway centerline; • Maintain or regain a normal landing pitch
attitude (do not increase pitch attitude as this
− Advancing the throttle levers slightly above could cause a tailstrike);
idle.
• Continue the landing;
• The PNF (instructor) is responsible for:
− Reconfiguring the aircraft for takeoff; • Use power as required to soften the second
touchdown; and,
− Resetting systems, as required;
• Be aware of the increased landing distance.
− Monitoring engine parameters and flight
modes annunciations;
Recovery from a high bounce (more than 5 ft):
− Performing the takeoff callouts;
In case of a more severe bounce, do not attempt to
− Deciding to abort the takeoff, if required; and, land, as the remaining runway length might not be
sufficient to stop the aircraft.
− Ensuring back-up of PF during rotation and
initial climb. The following generic go-around technique can be
applied:
Performing a rejected landing (i.e., a non- • Maintain or regain a normal landing pitch
anticipated and non-prepared event) further attitude;
amplifies the importance for the PF and PNF to • Initiate a go-around by triggering go-around
strictly adhere to the defined task sharing and to levers/switches and advancing throttle levers to
concentrate on their respective tasks. the go-around thrust position;

Page 2
• Maintain the landing flaps configuration or set Commitment for Go-around

the required flaps configuration, as set forth in
the applicable FCOM; If a rejected landing is initiated, the flight crew must
be committed to proceed with the go-around
• Be ready for a possible second touchdown; maneuver and not retard the throttle levers in an
ultimate decision to complete the landing.
• Be alert to apply forward force on control
column (side stick) and reset the pitch trim nose Reversing a go-around decision usually is observed
down as engines spool up (conventional aircraft when the decision to reject the landing and to initiate
models only); a go-around is taken by the first officer (as PF) but
is overridden by the captain.
• When safely established in the go-around and
no risk of further touchdown exists (i.e., with a Runway overruns, impact with obstructions and
steady positive rate of climb), follow normal go- major aircraft damage (or post impact fire) often are
around procedures; and, the consequences of reversing an already initiated
rejected landing.
• Reengage automation, as desired, to reduce
workload.
Summary of Key Points
The SOPs should define the respective decision

Commitment for Full-Stop Landing criteria for:
• Full-stop landing; or,
Landing incidents and accidents clearly
demonstrate that after the thrust reversers have • Rejected landing and go-around.
been deployed (even at reverse idle), the landing
must be completed to a full stop, as a successful Procedures and techniques should be published for
go-around may not be possible. bounce recovery, including:
The following occurrences have resulted in • Continued landing; or,
a significantly reduced rate of climb or in departure
• Rejected landing (i.e., go-around).
from controlled flight:
• Thrust asymmetry resulting from asymmetrical
engine spool up (i.e., asymmetrical engine Associated Briefing Notes
acceleration characteristics from a ground idle
level); The following Briefing Notes can be reviewed in
association with the above information:
• Thrust asymmetry resulting from one thrust
reverser going to the stow position faster than • %HLQJ 3UHSDUHG WR *RDURXQG
the other one; and, • )O\LQJ 6WDELOL]HG $SSURDFKHV
• Severe thrust asymmetry resulting from one • 3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG
thrust reverser failing to re-stow. 2YHUUXQV

Page 3
&KDSWHU
$SSURDFK7HFKQLTXHV
)O\LQJ6WDELOL]HG$SSURDFKHV
,QWURGXFWLRQ
5XVKHG DQG XQVWDELOL]HG DSSURDFKHV DUH WKH ODUJHVW )DFWRU RI (YHQWV

FRQWULEXWRU\ IDFWRU LQ &),7 DQG RWKHU DSSURDFKDQG
ODQGLQJ DFFLGHQWV +LJK DQGRU IDVW DSSURDFK
5XVKHG DSSURDFKHV UHVXOW LQ LQVXIILFLHQW WLPH IRU WKH RU
IOLJKW FUHZ WR FRUUHFWO\ /RZ DQGRU VORZ DSSURDFK
x 3ODQ
x 3UHSDUH DQG )OLJKWKDQGOLQJ GLIILFXOWLHV

GHPDQGLQJ $7& FOHDUDQFHV
x ([HFXWH D VDIH DSSURDFK
DGYHUVH ZLQG FRQGLWLRQV
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG
GLVFXVVLRQ RI 7DEOH
x &ULWHULD GHILQLQJ D VWDELOL]HG DSSURDFK DQG
)DFWRUV ,QYROYHG
x )DFWRUV LQYROYHG LQ UXVKHG DQG XQVWDELOL]HG
DSSURDFKHV
1RWH )DFWRU RI (YHQWV
)O\LQJ VWDELOL]HG DSSURDFKHV FRPSO\LQJ ZLWK WKH
VWDELOL]DWLRQ FULWHULD DQG DSSURDFK JDWHV GHILQHG
2IIUXQZD\ WRXFKGRZQ
7DLO VWULNH
KHUHDIWHU GRHV QRW SUHFOXGH IO\LQJ D 'HOD\HG )ODSV
$SSURDFK DOVR FDOOHG D 'HFHOHUDWHG $SSURDFK DV
GLFWDWHG E\ $7& UHTXLUHPHQWV
5XQZD\ H[FXUVLRQ RU RYHUUXQ
6WDWLVWLFDO 'DWD &),7
&RQWLQXLQJ DQ XQVWDELOL]HG DSSURDFK LV D FDXVDO
IDFWRU LQ RI DOO DSSURDFKDQGODQGLQJ /RVV RI FRQWURO
DFFLGHQWV
7DEOH DQG 7DEOH VKRZ WKH IDFWRUV LQYROYHG LQ 7DEOH
UXVKHG DQG XQVWDELOL]HG DSSURDFKHV DQG WKH &RQVHTXHQFHV RI &RQWLQXHG $SSURDFK
FRQVHTXHQFHV RI FRQWLQXLQJ DQ XQVWDELOL]HG
DSSURDFK

3DJH
$SSURDFK *DWHV ± 6WDELOL]DWLRQ +HLJKWV 'HILQLQJ D 6WDELOL]HG $SSURDFK

7KH IROORZLQJ DSSURDFK JDWHV DQG PLQLPXP $Q DSSURDFK LV FRQVLGHUHG VWDELOL]HG RQO\ LI DOO WKH
VWDELOL]DWLRQ KHLJKWV DUH UHFRPPHQGHG WR DFKLHYH IROORZLQJ FRQGLWLRQV DUH DFKLHYHG EHIRUH RU ZKHQ
WLPHO\ VWDELOL]HG DSSURDFKHV UHDFKLQJ WKH DSSOLFDEOH VWDELOL]DWLRQ KHLJKW
)RU DOO W\SHV RI DSSURDFK

0HWHRURORJLFDO +HLJKW DERYH
&RQGLWLRQV $LUILHOG (OHYDWLRQ
7KH DLUFUDIW LV RQ WKH FRUUHFW ODWHUDO DQG YHUWLFDO

,0& IW
IOLJKW SDWK
90& IW EDVHG RQ QDYDLGV JXLGDQFH RU YLVXDO UHIHUHQFHV
7DEOH 2QO\ VPDOO FKDQJHV LQ KHDGLQJ DQG SLWFK

DUH UHTXLUHG WR PDLQWDLQ WKLV IOLJKW SDWK
0LQLPXP 6WDELOL]DWLRQ +HLJKWV
7KH DLUFUDIW LV LQ WKH GHVLUHG ODQGLQJ FRQILJXUDWLRQ
7KH SRZHU LV VWDELOL]HG DQG WKH DLUFUDIW LV WULPPHG

WR PDLQWDLQ WKH WDUJHW ILQDO DSSURDFK VSHHG
RQ WKH GHVLUHG JOLGH SDWK
7KH ODQGLQJ FKHFNOLVW KDV EHHQ DFFRPSOLVKHG

DV ZHOO DV DQ\ UHTXLUHG VSHFLILF EULHILQJ
1R IOLJKW SDUDPHWHU H[FHHGV WKH FULWHULD SURYLGHG LQ

7DEOH DQG 7DEOH
7DEOH DQG 7DEOH DOVR GHILQH WKH FULWHULD IRU

IOLJKWSDUDPHWHUV H[FHVVLYHGHYLDWLRQ FDOORXWV
7DEOH
1RWH
1RQQRUPDO FRQGLWLRQV UHTXLULQJ GHYLDWLRQ IURP WKH

DERYH HOHPHQWV RI D VWDELOL]HG DSSURDFK VKRXOG EH
EULHIHG IRUPDOO\

3DJH
)RU YLVXDO DQG FLUFOLQJ DSSURDFKHV )RU DOO W\SHV RI FRQVWDQWDQJOH DSSURDFKHV
)RU YLVXDO DSSURDFKHV
ZLQJV PXVW EH OHYHO RQ ILQDO

3DUDPHWHU &DOORXW &ULWHULD
ZKHQ WKH DLUFUDIW UHDFKHV
IW DERYH DLUILHOG HOHYDWLRQ
$LUVSHHG /RZHU WKDQ 9 $33 ± NW

)RU FLUFOLQJ DSSURDFKHV RU
ZLQJV PXVW EH OHYHO RQ ILQDO
ZKHQ WKH DLUFUDIW UHDFKHV *UHDWHU WKDQ 9 $33 NW

IW DERYH DLUILHOG HOHYDWLRQ
7DEOH
9HUWLFDO *UHDWHU WKDQ ± IWPQ
([FHVVLYH IOLJKW SDUDPHWHU GHYLDWLRQ 6SHHG
FDOORXWV FULWHULD 1RWH
:KHQ UHDFKLQJ WKH DSSOLFDEOH VWDELOL]DWLRQ KHLJKW ,I WKH DSSURDFK UHTXLUHV PRUH WKDQ
DQG EHORZ D FDOORXW VKRXOG EH SHUIRUPHG E\ WKH ± IWPQ
31) LI DQ\ IOLJKW SDUDPHWHU H[FHHGV WKH OLPLWV YHUWLFDO VSHHG
SURYLGHG LQ 7DEOH DQG 7DEOH HJ IRU *6 FDSWXUH IURP DERYH

3) DQG 31) VKRXOG GLVFXVV WKH
UHTXLUHG YHUWLFDO VSHHG
7KH ILQDO DSSURDFK VSHHG 9 $33 LV FRQVLGHUHG WR EH

HTXDO WR 9 5() NW RU 9 /6 NW DV DSSOLFDEOH
3LWFK /RZHU WKDQ 1RVH 'RZQ
9 5() LV WKH UHIHUHQFH WDUJHW WKUHVKROG VSHHG LQ WKH $WWLWXGH
IXOO IODSV ODQGLQJ FRQILJXUDWLRQ LH LQ WKH DEVHQFH RU
RI DLUVSHHG FRUUHFWLRQV EHFDXVH RI ZLQG ZLQGVKHDU

RU QRQQRUPDO FRQILJXUDWLRQ *UHDWHU WKDQ 1RVH 8S
5HIHU WR WKH DSSOLFDEOH 623V IRU DSSOLFDEOH SLWFK %DQN *UHDWHU WKDQ GHJUHHV
DWWLWXGH OLPLWV $QJOH
0RQLWRULQJ WKH JURXQG VSHHG SURYLGHV DQ *URXQG /RZHU WKDQ 9 $33 NW

DZDUHQHVV RI D SRVVLEOH LPSHQGLQJ ZLQG VKHDU 6SHHG

0DLQWDLQLQJ WKH JURXQG VSHHG DERYH 9 $33 ± NW
SURYLGHV DQ HQHUJ\ PDUJLQ LQ UHDGLQHVV IRU WKH
VXGGHQ KHDG ZLQG WR WDLO ZLQG VKLIW XVXDOO\
DVVRFLDWHG ZLWK ZLQG VKHDU

7DEOH
0DLQWDLQLQJ D PLQLPXP JURXQG VSHHG LV SHUIRUPHG
DXWRPDWLFDOO\ ZKHQ IO\LQJ LQ PDQDJHGVSHHG RQ
IO\E\ZLUH DLUFUDIW PRGHOV

3DJH
)RU /2&RQO\ DQG ,/6 DSSURDFKHV ,Q DGGLWLRQ D VWDELOL]HG DSSURDFK SURYLGHV WKH
IROORZLQJ EHQHILWV
x 0RUH WLPH DQG DWWHQWLRQ DUH DYDLODEOH IRU WKH

3DUDPHWHU &DOORXW &ULWHULD PRQLWRULQJ RI $7& FRPPXQLFDWLRQV ZHDWKHU
FRQGLWLRQV V\VWHPV RSHUDWLRQ
x 0RUH WLPH LV DYDLODEOH IRU HIIHFWLYH PRQLWRULQJ

/2& GHYLDWLRQ /2&RQO\ DSSURDFK GRW
DQG EDFNXS E\ WKH 31)
,/6 &$7 , GRW x 'HILQHG IOLJKWSDUDPHWHUGHYLDWLRQ FULWHULD DQG

PLQLPXP VWDELOL]DWLRQ KHLJKW VXSSRUW WKH
GHFLVLRQ WR ODQG RU JRDURXQG DQG
,/6 &$7 ,, &$7 ,,,
x /DQGLQJ SHUIRUPDQFH LV FRQVLVWHQW ZLWK

GRW
SXEOLVKHG SHUIRUPDQFH
RU
([FHVVLYH 'HYLDWLRQ :DUQLQJ )DFWRUV ,QYROYHG LQ 8QVWDELOL]HG

$SSURDFKHV
7KH IROORZLQJ FLUFXPVWDQFHV IDFWRUV DQG HUURUV DUH
*6 GHYLDWLRQ GRW
RIWHQ FLWHG ZKHQ GLVFXVVLQJ UXVKHG DQG XQVWDELOL]HG
,/6
DSSURDFKHV
RU
x )DWLJXH
([FHVVLYH 'HYLDWLRQ :DUQLQJ
x 3UHVVXUH RI IOLJKW VFKHGXOH LH PDNLQJ XS IRU

WDNHRII GHOD\
7DEOH
x $Q\ FUHZLQGXFHG RU FRQWUROOHULQGXFHG
FLUFXPVWDQFHV UHVXOWLQJ LQ LQVXIILFLHQW WLPH WR
%HQHILWV RI D 6WDELOL]HG $SSURDFK SODQ SUHSDUH DQG H[HFXWH D VDIH DSSURDFKHV
7KLV LQFOXGHV DFFHSWLQJ UHTXHVWV IURP $7& IRU

&RQGXFWLQJ D VWDELOL]HG DSSURDFK LQFUHDVHV WKH
IO\LQJ KLJKHU DQGRU IDVWHU WKDQ GHVLUHG RU IO\LQJ
IOLJKW FUHZ¶ RYHUDOO VLWXDWLRQDO DZDUHQHVV
VKRUWHU URXWLQJV WKDQ GHVLUHG
x +RUL]RQWDO VLWXDWLRQDO DZDUHQHVV E\ FORVHO\

PRQLWRULQJ WKH IOLJKW SDWK x $7& LQVWUXFWLRQV WKDW UHVXOW LQ IO\LQJ WRR KLJK
DQGRU WRR IDVW GXULQJ WKH LQLWLDO DSSURDFK
x 6SHHG DZDUHQHVV E\ PRQLWRULQJ VSHHG

GHYLDWLRQV x ([FHVVLYH DOWLWXGH RU H[FHVVLYH DLUVSHHG
LH LQDGHTXDWH HQHUJ\ PDQDJHPHQW HDUO\ LQ
x 9HUWLFDO VLWXDWLRQDO DZDUHQHVV E\ PRQLWRULQJ WKH DSSURDFK
WKH YHUWLFDO IOLJKW SDWK DQG WKH UDWH RI GHVFHQW

x /DWH UXQZD\ FKDQJH ODFN RI $7& DZDUHQHVV RI
x (QHUJ\ DZDUHQHVV E\ PDLQWDLQLQJ WKH HQJLQHV WKH WLPH UHTXLUHG WR UHFRQILJXUH WKH DLUFUDIW
WKUXVW WR WKH OHYHO UHTXLUHG WR IO\ D GHJUHH V\VWHPV IRU D QHZ DSSURDFK
DSSURDFK SDWK DW WKH ILQDO DSSURDFK VSHHG RU DW

WKH PLQLPXP JURXQG VSHHG DV DSSOLFDEOH x ([FHVVLYH KHDGGRZQ ZRUN HJ )06
UHSURJUDPPLQJ
7KLV DOVR HQKDQFHV WKH JRDURXQG FDSDELOLW\

3DJH
x 6KRUW RXWERXQG OHJ RU VKRUW GRZQZLQG OHJ x )XOO DSSURDFK IORZQ DW LGOH GRZQ WR WRXFKGRZQ
EHFDXVH RI H[FHVVLYH DLUVSHHG DQGRU DOWLWXGH

HJ LQ FDVH RI XQLGHQWLILHG WUDIILF LQ WKH DUHD

HDUO\ LQ WKH DSSURDFK
x /DWH WDNHRYHU IURP DXWRPDWLRQ HJ LQ FDVH RI
$3 IDLOLQJ WR FDSWXUH WKH *6 XVXDOO\ GXH WR FUHZ x 6WHHS DSSURDFK LH DERYH GHVLUHG IOLJKW SDWK
IDLOXUH WR DUP WKH DSSURDFK PRGH ZLWK H[FHVVLYH YHUWLFDO VSHHG XS WR
± IWPQ IOLJKW SDWK DQJOH XS WR
x 3UHPDWXUH RU ODWH GHVFHQW GXH WR DEVHQFH RI JUDGLHQW GHJUHH VORSH
SRVLWLYH )$) LGHQWLILFDWLRQ 6WHHS DSSURDFKHV DSSHDU WR EH WZLFH DV
x ,QVXIILFLHQW DZDUHQHVV RI ZLQG FRQGLWLRQV IUHTXHQW DV VKDOORZ DSSURDFKHV
WDLOZLQG FRPSRQHQW x 6KDOORZ DSSURDFK LH EHORZ GHVLUHG JOLGH
SDWK
ORZ DOWLWXGH ZLQG VKHDU
x /RZ DLUVSHHG PDQHXYHULQJ LH LQDGHTXDWH
ORFDO ZLQG JUDGLHQW DQG WXUEXOHQFH HQHUJ\ PDQDJHPHQW
HJ FDXVHG E\ WHUUDLQ RU EXLOGLQJV RU
UHFHQW ZHDWKHU DORQJ WKH ILQDO DSSURDFK SDWK
x ([FHVVLYH EDQN DQJOH ZKHQ FDSWXULQJ WKH ILQDO
HJ GRZQGUDIW FDXVHG E\ D GHVFHQGLQJ FROG DSSURDFK FRXUVH XS WR GHJUHH
DLU PDVV IROORZLQJ D UDLQ VKRZHU x $FWLYDWLRQ RI D *3:6 ZDUQLQJ
x ,QFRUUHFW DQWLFLSDWLRQ RI DLUFUDIW GHFHOHUDWLRQ 0RGH 6,1. 5$7(
FKDUDFWHULVWLFV LQ OHYHO IOLJKW RU RQ D GHJUHH
JOLGHVORSH 0RGH $ 7(55$,1 QRW IXOO IODSV

x )DLOXUH WR UHFRJQL]H GHYLDWLRQV RU WR UHPHPEHU 0RGH % 7(55$,1 IXOO IODSV
WKH H[FHVVLYHSDUDPHWHUGHYLDWLRQ FULWHULD
%HOLHI WKDW WKH DLUFUDIW ZLOO EH VWDELOL]HG DW WKH x /DWH H[WHQVLRQ RI IODSV RU IODSV ORDG UHOLHI
x
VWDELOL]DWLRQ KHLJKW RU VKRUWO\ WKHUHDIWHU V\VWHP DFWLYDWLRQ DV DSSOLFDEOH UHVXOWLQJ LQ WKH
ODWH HIIHFWLYH H[WHQVLRQ RI IODSV
x ([FHVVLYH FRQILGHQFH E\ WKH 31) WKDW WKH 3) x )OLJKWSDUDPHWHU H[FHVVLYH GHYLDWLRQ ZKHQ
ZLOO DFKLHYH D WLPHO\ VWDELOL]DWLRQ FURVVLQJ WKH VWDELOL]DWLRQ KHLJKW
x 3)31) RYHU UHOLDQFH RQ HDFK RWKHU WR FDOO ([FHVVLYH DLUVSHHG XS WR 9 5() NW
H[FHVVLYH GHYLDWLRQV RU WR FDOO IRU D JRDURXQG
DQG 1RW DOLJQHG XS WR GHJUHH KHDGLQJ

GLIIHUHQFH
x 9LVXDO LOOXVLRQV GXULQJ WKH YLVXDO VHJPHQW
([FHVVLYH EDQN DQJOH XS WR GHJUHHV
'HYLDWLRQV 2EVHUYHG LQ 8QVWDELOL]HG ([FHVVLYH YHUWLFDO VSHHG
$SSURDFKHV XS WR ± IWPQ
7KH IROORZLQJ SURFHGXUH GHYLDWLRQV RU IOLJKW SDWK ([FHVVLYH JOLGH VORSH GHYLDWLRQ
H[FXUVLRQV RIWHQ DUH REVHUYHG DORQH RU LQ

XS WR GRWV
FRPELQDWLRQ LQ UXVKHG DQG XQVWDELOL]HG DSSURDFKHV
ILJXUHV SURYLGHG EHWZHHQ EUDFNHWV UHIOHFW H[WUHPH x ([FHVVLYH EDQN DQJOH H[FHVVLYH VLQN UDWH RU
GHYLDWLRQV REVHUYHG LQ DFWXDO XQVWDELOL]HG H[FHVVLYH PDQHXYHULQJ ZKLOH SHUIRUPLQJ
DSSURDFKHV ZRUOGZLGH D VLGHVWHS

3DJH
x 6SHHGEUDNHV EHLQJ VWLOO H[WHQGHG ZKHQ LQ VKRUW 'HWHFW

ILQDO LH EHORZ IW DERYH DLUILHOG HOHYDWLRQ
'HILQHG H[FHVVLYHSDUDPHWHUGHYLDWLRQ FULWHULD DQG
x ([FHVVLYH IOLJKWSDUDPHWHU GHYLDWLRQV GRZQ WR D GHILQHG VWDELOL]DWLRQ KHLJKW SURYLGH WKH 3) DQG
UXQZD\ WKUHVKROG 31) ZLWK D FRPPRQ UHIHUHQFH IRU HIIHFWLYH
x 0RQLWRULQJ LH HDUO\ GHWHFWLRQ RI GHYLDWLRQV

x +LJK UXQZD\WKUHVKROG FURVVLQJ XS WR IW
DQG
x /RQJ IODUH DQG H[WHQGHG WRXFKGRZQ x %DFNXS LH WLPHO\ DQG SUHFLVH GHYLDWLRQ
FDOORXWV IRU HIIHFWLYH FRUUHFWLRQV
&RPSDQ\¶V 3UHYHQWLRQ 6WUDWHJLHV DQG 7R SURYLGH WKH WLPH DYDLODELOLW\ DQG DWWHQWLRQ
3HUVRQDO /LQHVRIGHIHQVH UHTXLUHG IRU DQ HIIHFWLYH PRQLWRULQJ DQG EDFNXS
WKH IROORZLQJ VKRXOG EH DYRLGHG
&RPSDQ\¶V SUHYHQWLRQ VWUDWHJLHV DQG SHUVRQDO
x /DWH EULHILQJV
OLQHVRIGHIHQVH WR UHGXFH WKH QXPEHU RI
XQVWDELOL]HG DSSURDFKHV VKRXOG x 8QQHFHVVDU\ UDGLR FDOOV HJ FRPSDQ\ FDOOV
x ,GHQWLI\ DQG PLQLPL]H WKH IDFWRUV LQYROYHG x 8QQHFHVVDU\ DFWLRQV HJ XVH RI $&$56 DQG
x 3URYLGH UHFRPPHQGDWLRQV IRU WKH HDUO\ x 1RQSHUWLQHQW LQWUDFRFNSLW FRQYHUVDWLRQV LH

GHWHFWLRQ DQG FRUUHFWLRQ RI XQVWDELOL]HG EUHDNLQJ WKH VWHULOHFRFNSLW UXOH
DSSURDFKHV
5HGXFLQJ WKH ZRUNORDG DQG FRFNSLW GLVWUDFWLRQV

7KH IROORZLQJ IRXUVWHS VWUDWHJ\ LV SURSRVHG
DQGRU LQWHUUXSWLRQV DOVR SURYLGHV WKH IOLJKW FUHZ
x $QWLFLSDWH ZLWK PRUH DOHUWQHVV DQG DYDLODELOLW\ WR
x 'HWHFW x &RSH ZLWK IDWLJXH
x &RUUHFW DQG x &RPSO\ ZLWK DQ XQDQWLFLSDWHG $7& UHTXHVW

HJ UXQZD\ FKDQJH RU YLVXDO DSSURDFK
x 'HFLGH
x $GDSW WR FKDQJLQJ ZHDWKHU FRQGLWLRQV RU
$QWLFLSDWH
x 0DQDJH D V\VWHP PDOIXQFWLRQ HJ IODSV
6RPH IDFWRUV OLNHO\ WR UHVXOW LQ D UXVKHG DQG MDPPLQJ RU JHDU IDLOLQJ WR H[WHQG RU GRZQORFN
XQVWDELOL]HG DSSURDFK FDQ EH DQWLFLSDWHG
:KHQHYHU SUDFWLFDO IOLJKW FUHZV DQG FRQWUROOHUV &RUUHFW

VKRXOG DYRLG VLWXDWLRQV WKDW PD\ UHVXOW LQ UXVKHG
DSSURDFKHV 3RVLWLYH FRUUHFWLYH DFWLRQV VKRXOG EH WDNHQ EHIRUH
GHYLDWLRQV GHYHORS LQWR D FKDOOHQJLQJ RU D
7KH GHVFHQWDQGDSSURDFK EULHILQJ SURYLGHV DQ KD]DUGRXV VLWXDWLRQ LQ ZKLFK WKH RQO\ VDIH DFWLRQ LV
RSSRUWXQLW\ WR LGHQWLI\ DQG GLVFXVV IDFWRUV VXFK DV D JRDURXQG
x 1RQVWDQGDUG DOWLWXGH RU VSHHG UHVWULFWLRQV

&RUUHFWLYH DFWLRQV PD\ LQFOXGH
UHTXLULQJ D FDUHIXO HQHUJ\ PDQDJHPHQW
$Q DJUHHG VWUDWHJ\ VKRXOG EH GHILQHG IRU WKH

x 7KH WLPHO\ XVH RI VSHHG EUDNHV RU WKH HDUO\
H[WHQVLRQ RI ODQGLQJ JHDU WR FRUUHFW
PDQDJHPHQW RI WKH GHVFHQW GHFHOHUDWLRQ DQG
DQ H[FHVVLYH DOWLWXGH RU DQ H[FHVVLYH DLUVSHHG
VWDELOLVDWLRQ LH IROORZLQJ WKH FRQFHSWV RI QH[W
WDUJHWV DQG DSSURDFK JDWH x ([WHQGLQJ WKH RXWERXQG OHJ RU GRZQZLQG OHJ
7KLV VWUDWHJ\ ZLOO FRQVWLWXWH D FRPPRQ REMHFWLYH

DQG UHIHUHQFH IRU WKH 3) DQG 31)

3DJH
'HFLGH 1H[W 7DUJHW DQG $SSURDFK *DWH

$Q LPPHGLDWH JRDURXQG PXVW EH SHUIRUPHG LI 7KURXJKRXW WKH HQWLUH IOLJKW D QH[W WDUJHW VKRXOG EH
GHILQHG WR VWD\ DKHDG RI WKH DLUFUDIW DW DOO WLPHV
x 7KH DSSURDFK LV QRW VWDELOL]HG ZKHQ UHDFKLQJ
WKH PLQLPXP VWDELOL]DWLRQ KHLJKW RU
7KH GHILQHG QH[W WDUJHW VKRXOG EH DQ\ UHTXLUHG
FRPELQDWLRQ RI
x $Q\ IOLJKW SDUDPHWHU H[FHHGV WKH UHODWHG
H[FHVVLYHGHYLDWLRQ FULWHULD RWKHU WKDQ x $ SRVLWLRQ
WUDQVLHQWO\ ZKHQ EHORZ WKH PLQLPXP
VWDELOL]DWLRQ KHLJKW x $Q DOWLWXGH
7KH IROORZLQJ EHKDYLRUV RIWHQ DUH LQYROYHG LQ WKH x $ FRQILJXUDWLRQ

FRQWLQXDWLRQ RI DQ XQVWDELOL]HG DSSURDFK
x &RQILGHQFH LQ D TXLFN UHFRYHU\ LH SRVWSRQLQJ x $ VSHHG
WKH JRDURXQG GHFLVLRQ ZKHQ SDUDPHWHUV DUH

FRQYHUJLQJ WRZDUG WDUJHW YDOXHV x $ YHUWLFDO VSHHG RU IOLJKW SDWK DQJOH DQG
x 2YHUFRQILGHQFH EHFDXVH RI D ORQJ DQG GU\ x $ SRZHU VHWWLQJ

UXQZD\ DQGRU D ORZ JURVVZHLJKW DOWKRXJK
DLUVSHHG DQGRU YHUWLFDO VSHHG DUH H[FHVVLYH
'XULQJ WKH DSSURDFK DQG ODQGLQJ WKH VXFFHVVLYH
QH[W WDUJHWV VKRXOG EH DFKLHYHG IRU WKH DSSURDFK WR
x ,QDGHTXDWH UHDGLQHVV RU ODFN RI FRPPLWPHQW WR
EH FRQWLQXHG
FRQGXFW D JRDURXQG
,I WKH FUHZ DQWLFLSDWHV WKDW RQH RI WKH HOHPHQWV RI

$ FKDQJH RI PLQGVHW VKRXOG WDNH SODFH IURP WKH QH[W WDUJHW ZLOO QRW EH DFKLHYHG WKH UHTXLUHG
FRUUHFWLYH DFWLRQV VKRXOG EH WDNHQ ZLWKRXW GHOD\
³:H ZLOO ODQG XQOHVV «´ WR
7KH PLQLPXP VWDELOL]DWLRQ KHLJKW FRQVWLWXWHV
³/HW¶V EH SUHSDUHG IRU D JRDURXQG DQG ZH D SDUWLFXODU JDWH DORQJ WKH ILQDO DSSURDFK
ZLOO ODQG LI WKH DSSURDFK LV VWDELOL]HG DQG LI D JRDURXQG PXVW EH LQLWLDWHG LI
ZH KDYH VXIILFLHQW YLVXDO UHIHUHQFHV WR PDNH
D VDIH DSSURDFK DQG ODQGLQJ´
x 7KH UHTXLUHG FRQILJXUDWLRQ DQG VSHHG LV QRW
REWDLQHG RU WKH IOLJKW SDWK LV QRW VWDELOL]HG ZKHQ
UHDFKLQJ WKH VWDELOL]DWLRQ KHLJKW
x *RDURXQG HQYLVDJHG EXW QRW LQLWLDWHG EHFDXVH
WKH DSSURDFK ZDV FRQVLGHUHG EHLQJ FRPSDWLEOH RU
ZLWK D VDIH ODQGLQJ DQG
x 7KH DLUFUDIW EHFRPHV XQVWDELOL]HG EHORZ WKH
VWDELOL]DWLRQ KHLJKW
x $EVHQFH RI GHFLVLRQ GXH WR IDWLJXH RU ZRUNORDG
LH IDLOXUH WR UHPHPEHU WKH DSSOLFDEOH
H[FHVVLYH GHYLDWLRQ FULWHULD

3DJH
6XPPDU\ RI .H\ 3RLQWV 5HJXODWRU\ UHIHUHQFHV

x ,&$2 ± $QQH[ ± 2SHUDWLRQV RI $LUFUDIW 3DUW ,
7KUHH HVVHQWLDO SDUDPHWHUV QHHG WR EH VWDELOL]HG IRU
± ,QWHUQDWLRQDO &RPPHUFLDO $LU WUDQVSRUW ±
D VDIH DSSURDFK
$HURSODQHV $SSHQGL[
x $LUFUDIW WUDFN
x ,&$2 ± 3URFHGXUHV IRU $LU QDYLJDWLRQ VHUYLFHV ±
x )OLJKW SDWK DQJOH DQG $LUFUDIW 2SHUDWLRQV 3$16236 'RF
9ROXPH , ± )OLJKW 3URFHGXUHV SDUWLFXODUO\ 3DUW
x $LUVSHHG
,; &KDSWHU 6WDELOL]HG $SSURDFK ±
3DUDPHWHUV (OHPHQWV RI D 6WDELOL]HG $SSURDFK
'HSHQGLQJ RQ WKH W\SH RI DSSURDFK DQG DLUFUDIW
DQG *RDURXQG 3ROLF\
HTXLSPHQW WKH PRVW DSSURSULDWH OHYHO RI DXWRPDWLRQ
DQG YLVXDO FXHV VKRXOG EH XVHG WR DFKLHYH DQG x ,&$2 ± 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO
PRQLWRU WKH VWDELOL]DWLRQ RI WKH DLUFUDIW 'RF
x )$$ 'RFXPHQW $ ± $LU &DUULHU 2SHUDWLRQ

:KHQ EUHDNLQJRXW RI WKH FORXG RYHUFDVW DQG
,QVSHFWRU +DQGERRN ± &KDSWHU ± SDUDJUDSK
WUDQVLWLRQLQJ WR YLVXDO UHIHUHQFHV WKH SLORW¶V
GI SURFHGXUHV IRU DOWLWXGH DQG YHUWLFDO
SHUFHSWLRQ RI WKH UXQZD\ DQG RXWVLGH HQYLURQPHQW
VSHHG PRQLWRULQJ
VKRXOG EH NHSW FRQVWDQW E\ PDLQWDLQLQJ WKH
x
x 'ULIW FRUUHFWLRQ WR FRQWLQXH WUDFNLQJ
)$$ 'RFXPHQW VWDWLQJ WKDW D VLQN UDWH
RI JUHDWHU WKDQ DSSUR[LPDWHO\ IWPQ LV
WKH UXQZD\ FHQWHUOLQH UHVLVWLQJ WKH WHQGHQF\ WR
XQDFFHSWDEOH EHORZ IW DERYH DLUILHOG
SUHPDWXUHO\ DOLJQ WKH DLUFUDIW ZLWK WKH UXQZD\
HOHYDWLRQ
FHQWHUOLQH
x $LPLQJ SRLQW LH WKH WRXFKGRZQ ]RQH

WR UHPDLQ RQ WKH FRUUHFW IOLJKW SDWK XQWLO IODUH 2WKHU 5HIHUHQFHV
KHLJKW UHVLVWLQJ WKH WHQGHQF\ WR PRYH WKH
DLPLQJ SRLQW FORVHU DQG WKXV GHVFHQG EHORZ x 86 1DWLRQDO 7UDQVSRUWDWLRQ 6DIHW\ %RDUG
WKH GHVLUHG JOLGH SDWK LH ³GXFNXQGHU´ DQG 176% ± 5HSRUW 176%$$6 ±6SHFLDO
x )LQDO DSSURDFK VSHHG DQG JURXQG VSHHG WR

6WXG\ )OLJKW &UHZ &RRUGLQDWLRQ 3URFHGXUH LQ
$LU &DUULHU ,QVWUXPHQW /DQGLQJ 6\VWHP
PDLQWDLQ WKH HQHUJ\ OHYHO
$SSURDFK $FFLGHQWV

7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHYLHZHG LQ
DVVRFLDWLRQ ZLWK WKH DERYH LQIRUPDWLRQ
x 'HVFHQW DQG $SSURDFK 3URILOH

0DQDJHPHQW

$SSURDFK

$SSURDFKHV
x 7KH )LQDO $SSURDFK 6SHHG
x )DFWRUV $IIHFWLQJ /DQGLQJ

'LVWDQFHV

3DJH
)O\LQJ&RQVWDQW$QJOH1RQ3UHFLVLRQ$SSURDFKHV
3ODQQLQJ DQG FRQGXFWLQJ D QRQSUHFLVLRQ DSSURDFK $OPRVW RI &),7 LQFLGHQWV DQG DFFLGHQWV RFFXU
13$ LV FHUWDLQO\ WKH PRVW FKDOOHQJLQJ DQG GXULQJ VWHSGRZQ QRQSUHFLVLRQ DSSURDFKHV
GHPDQGLQJ SDUW RI D IOLJKW WKLV LQFOXGHV
x 'HFLVLRQ PDNLQJ RQ VWUDWHJLHV DQG RSWLRQV
7KH FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFK
&$13$ WHFKQLTXH GHVFULEHG LQ WKLV %ULHILQJ 1RWH
x (IIHFWLYH WDVNVKDULQJ
VKRXOG EH LPSOHPHQWHG DQG WUDLQHG ZRUOGZLGH IRU
SUHYHQWLQJ &),7 DQG RWKHU DSSURDFKDQGODQGLQJ
x &UHZ FRRUGLQDWLRQ PRQLWRULQJ DQG FDOORXWV
DFFLGHQWV
DQG
x &),7 DZDUHQHVV UHVSRQVH WR *3:6 RU
'HILQLQJ 1RQ3UHFLVLRQ $SSURDFKHV
(*3:6 7$:6 ZDUQLQJ $ QRQSUHFLVLRQ DSSURDFK LV DQ LQVWUXPHQW DSSURDFK

9DULRXV W\SHV RI 13$V DOVR FDOOHG QRQ,/6 WKDW GRHV QRW LQFRUSRUDWH YHUWLFDO JXLGDQFH
DSSURDFKHV VKDUH FRPPRQ IHDWXUHV EXW DOVR LH QRW XVLQJ D JOLGH VORSH EHDP
LQYROYH VSHFLILF WHFKQLTXHV GHSHQGLQJ RQ WKH 7KH QDYDLG EHLQJ XVHG LV WKHUHIRUH SULPDULO\ XVHG
QDYDLG EHLQJ XVHG RU RQ WKH VWUDWHJ\ EHLQJ DGRSWHG IRU ODWHUDO JXLGDQFH
IRU
x /DWHUDO DQG YHUWLFDO JXLGDQFH 1RQSUHFLVLRQ LQVWUXPHQW DSSURDFKHV LQFOXGH WKH
XVH RI WKH IROORZLQJ QDYDLGV
x 'HVFHQGLQJ IURP WKH ILQDO DSSURDFK IL[ )$)
GRZQ WR WKH PLQLPXP GHVFHQW DOWLWXGHKHLJKW x 1'% 925 /2&RQO\ 925'0( /2&'0(
0'$+ DQG /2& %&. &56
x 0DNLQJ WKH GHFLVLRQ EHIRUH RU ZKHQ UHDFKLQJ
1RWH
WKH 0'$+ 7KH /'$ /2&W\SH 'LUHFWLRQDO $LG 6')

6LPSOLILHG 'LUHFWLRQDO )DFLOLW\ DQG &LUFOLQJ
7KLV %ULHILQJ 1RWH GHVFULEHV WKH IHDWXUHV FRPPRQ DSSURDFKHV VKDUH PRVW RI WKH IHDWXUHV DQG
WR DOO W\SHV RI QRQSUHFLVLRQ DSSURDFKHV DQG SURFHGXUHV DSSOLFDEOH WR RWKHU QRQSUHFLVLRQ
WKH VSHFLILF IHDWXUHV RI HDFK LQGLYLGXDO W\SH RI DSSURDFKHV
DSSURDFK 1RWH
7KLV %ULHILQJ 1RWH KLJKOLJKWV WKH WHFKQLTXH RI
FRQVWDQWDQJOH FRQVWDQWVORSH QRQSUHFLVLRQ
*36 DSSURDFKHV SHUIRUPHG LQ RYHUOD\ WR D
DSSURDFK DV RSSRVHG WR WKH WUDGLWLRQDO VWHSGRZQ

FRQYHQWLRQDO QRQSUHFLVLRQ DSSURDFK DQG
WHFKQLTXH
51$9513 DSSURDFKHV ZLWK RU ZLWKRXW *36
35,0$5< DOVR VKDUH PRVW RI WKH VWUDWHJLHV DQG
SURFHGXUHV GHVFULEHG LQ WKLV %ULHILQJ 1RWH
)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV

3DJH
,QVWUXPHQW DSSURDFKHV XVXDOO\ FRQVLVW RI WKUHH 1RWHV
DSSURDFK VHJPHQWV 7KH FKDUWHG 0'$+ LV UHIHUHQFHG WR WKH WRXFKGRZQ

]RQH HOHYDWLRQ 7'=( WR WKH UXQZD\ 5:< RU WKH
x ,QLWLDO DSSURDFK
DLUSRUW UHIHUHQFH SRLQW $37 RU $53
)URP DQ LQLWLDO DSSURDFK IL[ ,$) WR WKH
LQWHUPHGLDWH IL[ ,) LI GHILQHG 7KH ,&$2 3$16236 GHILQH WKH 0'$+ DV D
IXQFWLRQ RI WKH REVWDFOH FOHDUDQFH DOWLWXGH KHLJKW
0LQLPXP REVWDFOH FOHDUDQFH IW
>2&$+@
x ,QWHUPHGLDWH DSSURDFK
0'$+ 2&$+ IW
)URP WKH ,) WR WKH ILQDO DSSURDFK IL[ )$)
0LQLPXP REVWDFOH FOHDUDQFH IW DQG

9'3 &RQFHSW
x )LQDO DSSURDFK
7KH 9LVXDO 'HVFHQW'HFLVLRQ 3RLQW 9'3 LV D SRLQW
)URP WKH )$) WR WKH 0'$+ DQG YLVXDO
LQ WKH DSSURDFK DW WKH 0'$+ ZKHUH WKH DLUFUDIW LV
GHVFHQWGHFLVLRQ SRLQW 9'3 RU 0$3
DSSUR[LPDWHO\ RQ D GHJUHH JOLGH SDWK DV
0LQLPXP REVWDFOH FOHDUDQFH IW LOOXVWUDWHG E\ )LJXUH
)RU QRQSUHFLVLRQ DSSURDFKHV WKH LQWHUPHGLDWH

DSSURDFK LV D WUDQVLWLRQ VHJPHQW GXULQJ ZKLFK WKH
'HFLVLRQ DW 9'3
DLUFUDIW LV FRQILJXUHG IRU WKH ILQDO DSSURDFK
'HVFHQW IURP 9'3
#
x /DQGLQJ JHDU H[WHQGHG RU
*RDURXQG
x /DQGLQJ IODSV FRQILJXUDWLRQ HVWDEOLVKHG
x 6SHHG VWDELOL]HG RQ WKH ILQDO DSSURDFK VSHHG

9 0
0'$+
x $LUFUDIW DOLJQHG ZLWK WKH ILQDO DSSURDFK FRXUVH

DQG
)$) RU )') 9'3 0$3
x /DQGLQJ FKHFNOLVW DQG EULHILQJV FRPSOHWHG
)LJXUH
9LVXDO 'HVFHQW 3RLQW 9'3 &RQFHSW
# 'HFLVLRQ
/LPLW
*R$URXQG 7KH 9'3 ORFDWLRQ LV GHILQHG E\
9 0
0'$+
x 'LVWDQFH IURP D 925'0( RU /2&'0(
RU
)$) RU )') 0$3
x 7LPH IURP WKH )$)
7KH 9'3 VKRXOG EH FRQVLGHUHG DV WKH ODVW SRLQW

)LJXUH
IURP ZKLFK D VWDELOL]HG YLVXDO GHVFHQW WR WKH UXQZD\
6WHSGRZQ )LQDO $SSURDFK FDQ EH FRQGXFWHG

3DJH
%HQHILWV RI D &RQVWDQW$QJOH )LQDO 6WUDWHJLHV DQG 2SWLRQV

$SSURDFK
3ODQQLQJ D QRQSUHFLVLRQ RU 51$9 D5HD
6WHSGRZQ DSSURDFKHV DUH EDVHG VROHO\ RQ DQ 1$9LJDWLRQ DSSURDFK UHTXLUHV GHILQLQJ VWUDWHJLHV
REVWDFOHFOHDUDQFH SURILOH VWHSGRZQ DSSURDFKHV DQG RSWLRQV IRU
DUH QRW RSWLPL]HG IRU PRGHUQ FRPPHUFLDO MHWOLQHUV
x /DWHUDO JXLGDQFH
)O\LQJ D FRQVWDQWDQJOH DSSURDFK SURILOH XVH RI VHOHFWHG PRGHV VHOHFWHG KHDGLQJ

PRGH DQG ORFDOL]HU PRGH RU
x 3URYLGHV D PRUH VWDELOL]HG IOLJKW SDWK
XVH RI )06 ODWHUDO QDYLJDWLRQ 1$9 PRGH
x 5HGXFHV WKH ZRUNORDG GXULQJ WKLV FULWLFDO IOLJKW XQWLO /2& LQWHUFHSWLRQ RU GRZQ WR 0'$+
SKDVH DQG
x 9HUWLFDO JXLGDQFH
x (OLPLQDWHV WKH ULVN RI HUURU LQ VWHSGRZQ
GLVWDQFHV DOWLWXGHV DQG WKH QHHG IRU D OHYHORII
XVH RI VHOHFWHG PRGHV DOWLWXGH KROG PRGH
DQG 96 PRGH RU
DW WKH 0'$+
XVH RI )06 YHUWLFDO QDYLJDWLRQ GRZQ WR WKH
7KLV UHGXFHV WKH ULVN RI &),7 )$) RU EH\RQG DV DSSOLFDEOH LQ DFFRUGDQFH
ZLWK WKH )&20
x )LQDO GHVFHQW IURP )$) RU ILQDO GHVFHQW IL[
XVH RI D VWHSGRZQ GHVFHQW ZLWK OHYHO RII DW

# 0'$+ RU
'HFLVLRQ XVH RI D FRQWLQXRXV FRQVWDQWDQJOH GHVFHQW
*R$URXQG ZLWK GHFLVLRQ EHIRUH RU ZKHQ UHDFKLQJ

99 0 0'$+
0'$+
1RWHV
7KH UHTXLUHPHQW WR PDNH WKH GHFLVLRQ EHIRUH

)$) RU )') 9'3 0$3
RU ZKHQ UHDFKLQJ WKH 0'$+ ± LH WKH
DOORZDQFH WR GHVFHQG EHORZ WKH 0'$+
GXULQJ WKH JRDURXQG PDQHXYHU GLS WKUX ±
)LJXUH GHSHQGV XSRQ WKH DSSOLFDEOH RSHUDWLRQDO
UHJXODWLRQ
&RQVWDQWDQJOH )LQDO $SSURDFK
2Q D FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFK

WKH 0'$+ PD\ EH FRQVLGHUHG DV D '$+
RQO\ LI WKH DSSURDFK KDV EHHQ VXUYH\HG DQG
DSSURYHG E\ WKH VWDWH QDYLJDWLRQ DJHQF\
DQGRU RSHUDWLRQDO DXWKRULWLHV
x 8VH RI LQHUWLDO IOLJKW SDWK YHFWRU DV DYDLODEOH

ZLWK RU ZLWKRXW WKH DXWRSLORW $3 HQJDJHG

3DJH
$ QRQSUHFLVLRQ DSSURDFK PD\ EH FRQGXFWHG XVLQJ &RQWLQXLQJ WKH DSSURDFK EHORZ WKH 0'$+ LV
HLWKHU SHUPLWWHG RQO\ LI DW OHDVW RQH RI WKH YLVXDO UHIHUHQFHV
LV GLVWLQFWO\ YLVLEOH DQG LGHQWLILDEOH E\ WKH 3) UHIHU WR
x /DWHUDO QDYLJDWLRQ JXLGDQFH ZLWK PRQLWRULQJ RI
%ULHILQJ 1RWH $FTXLVLWLRQ RI 9LVXDO
UDZ GDWD
5HIHUHQFHV
RU
x 5DZ GDWD RQO\ 7KH ODQGLQJ IROORZLQJ D QRQSUHFLVLRQ DSSURDFK LV
D YLVXDO DQG PDQXDO ODQGLQJ

RU
x 5DZ GDWD VXSSRUWHG E\ WKH XVH RI WKH IOLJKW SDWK

YHFWRU DV DYDLODEOH 6WDQGDUG 2SHUDWLQJ 3URFHGXUHV
7KH LPSRUWDQFH RI WDVN VKDULQJ VWDQGDUG FDOOV DQG
$ QRQSUHFLVLRQ DSSURDFK PD\ EH FRQGXFWHG ZLWK DOWLWXGH FDOORXWV RU SDUDPHWHU H[FHVVLYHGHYLDWLRQ
WKH $3 HQJDJHG FDOORXWV PXVW EH HPSKDVL]HG
x 8VLQJ )06 JXLGDQFH ZLWK

5HIHU DOVR WR WKH IROORZLQJ %ULHILQJ 1RWHV
ODWHUDO QDYLJDWLRQ XQWLO /2& LQWHUFHSWLRQ RU
GRZQ WR WKH 0'$+ DQG x ² 2SHUDWLQJ 3KLORVRSK\ 623V
YHUWLFDO QDYLJDWLRQ GRZQ WR WKH )$) RU x 6WDQGDUG &DOOV
EH\RQG DV DSSOLFDEOH LQ DFFRUGDQFH ZLWK

WKH )&20 WKHQ XVLQJ YHUWLFDO VSHHG PRGH
7KH IROORZLQJ RYHUYLHZ RXWOLQHV WKH DFWLRQV DQG
GRZQ WR WKH 0'$+ RU
VWDQGDUG FDOOV UHTXLUHG E\ 623V DQG LOOXVWUDWHV WKH
x 8VLQJ VHOHFWHG JXLGDQFH KHDGLQJ PRGH DQG W\SLFDO SKDVHV RI WKH DSSURDFK DQG WKH VHTXHQFH RI
DOWLWXGH KROG RU YHUWLFDO VSHHG PRGHV DIWHU GHFLVLRQV LQYROYHG LQ D QRQSUHFLVLRQ DSSURDFK
OHDYLQJ WKH ,$) DQG GRZQ WR WKH 0'$+
'HVFHQW $SSURDFK 3UHSDUDWLRQ

7KH DXWRWKURWWOHDXWRWKUXVW V\VWHP VKRXOG EH
HQJDJHG LQ WKH VSHHG PRGH x $QWLFLSDWH DQG FRQILUP WKH UXQZD\ LQ XVH DQG
WKH W\SH RI DSSURDFK WR EH FRQGXFWHG
&),7 $ZDUHQHVV x 'HILQH WKH DSSURDFK VWUDWHJ\ IRU ODWHUDO

JXLGDQFH
'XULQJ WKH ILQDO GHVFHQW WR WKH 0'$+ 3) DQG
31) VKRXOG PRQLWRU WKH YHUWLFDO IOLJKW SDWK DQG 8VH RI VHOHFWHG KHDGLQJ PRGH DQG QDYDLG
ODWHUDO IOLJKW SDWK DQG VKRXOG QRW GHVFHQG WR WKH UDZ GDWD
QH[W VWHSGRZQ DOWLWXGH EHIRUH UHDFKLQJ WKH
DVVRFLDWHG GHVFHQW IL[ '0( GLVWDQFH RU RWKHU RU
UHIHUHQFH
8VH RI )06 ODWHUDO QDYLJDWLRQ 1$9 PRGH

,Q ,0& RU DW QLJKW IOLJKW FUHZV VKRXOG UHVSRQG ZLWK PRQLWRULQJ RI UDZ GDWD LI
LPPHGLDWHO\ WR DQ\ *3:6 RU (*3:6 7$:6
ZDUQLQJ WKH DSSURDFK LV GHILQHG LQ WKH )06
QDYLJDWLRQ GDWDEDVH DQG
WKH )06 QDYLJDWLRQ DFFXUDF\ PHHWV WKH

'HVFHQGLQJ %HORZ 0'$ FULWHULD IRU DSSURDFK
W\SLFDOO\ EHWWHU WKDQ 1P LQ WHUPLQDO

'XULQJ D QRQSUHFLVLRQ DSSURDFK WKH 3) LV HQJDJHG
DUHD DQG EHWWHU WKDQ 1P IRU
LQ HLWKHU KDQGIO\LQJ WKH DLUFUDIW RU VXSHUYLVLQJ WKH $3
DSSURDFK
RSHUDWLRQ WKH 31) LV LQ FKDUJH RI DFTXLULQJ DQG
DQQRXQFLQJ WKH YLVXDO UHIHUHQFHV

3DJH
x 'HILQH WKH DSSURDFK VWUDWHJ\ IRU YHUWLFDO x &RQILUP WKH WLPLQJ IURP WKH )$) WR WKH 0$3 RU
JXLGDQFH WR WKH 9'3 RU FRQILUP WKH '0( GLVWDQFH
GHILQLQJ WKH 9'3 DQGRU 0$3
8VH RI DOWLWXGH KROG DQG YHUWLFDO VSHHG
PRGH x &RQILUP WKH QDYDLGV VHWXS IUHTXHQFLHV

FRXUVHV DQG LGHQWLILFDWLRQ
RU
x &RPSXWH WKH H[SHFWHG JURXQG VSHHG
8VH RI )06 YHUWLFDO QDYLJDWLRQ PRGH GRZQ
WR WKH )$) RU EH\RQG DV DSSOLFDEOH LQ x &RQILUP WKH SXEOLVKHG YHUWLFDO VSHHG IRU WKH ILQDO
DFFRUGDQFH ZLWK WKH )&20 GHVFHQW VHJPHQW RU FRPSXWH WKH WDUJHW YHUWLFDO
VSHHG EDVHG RQ WKH SXEOLVKHG DSSURDFK JOLGH
x ,QVHUW WKH GHVLUHG UXQZD\ W\SH RI DSSURDFK DQG SDWK DQG DQWLFLSDWHG JURXQG VSHHG DQG
67$5 IURP WKH GDWDEDVH LQ WKH )06 IOLJKW
SODQ
x &RQILUP WKH XVH RI WKH )' RU RI WKH IOLJKW SDWK
YHFWRU DV DSSOLFDEOH
x (QWHU WKH GHVFHQW DQG VXUIDFH ZLQGV RQ WKH
DSSURSULDWH )06 SDJH DV DSSOLFDEOH
'XULQJ 'HVFHQW
x (QWHU WKH ODQGLQJ FRQILJXUDWLRQ DQG ZLQG
FRUUHFWLRQ RQ WKH DSSURSULDWH )06 SDJH DV x &KHFN )06 QDYLJDWLRQ DFFXUDF\
DSSOLFDEOH
&KHFN WKDW WKH )06 EHDULQJGLVWDQFH WR D
x ,I WKH XVH RI WKH YHUWLFDO QDYLJDWLRQ PRGH LV WXQHG 925'0( DQG WKH 50, 1' UDZ
DXWKRUL]HG DIWHU WKH )$) HQWHU WKH 0'$+ RQ GDWD DJUHH ZLWKLQ WKH FULWHULD GHILQHG LQ WKH
WKH DSSURSULDWH )06 SDJH 623V DQG FRQILUP VWUDWHJLHV IRU ODWHUDO DQG
YHUWLFDO JXLGDQFH LH )06 RU VHOHFWHG
x 6HWXS QDYDLGV LGHQWLI\ DV UHTXLUHG DQG
JXLGDQFH
x 3ODQ WKH GHVFHQW IRU UHDFKLQJ WKH ,$) DW WKH
SUHVFULEHG DOWLWXGH DQG SODQQHG DLUVSHHG
%HIRUH UHDFKLQJ WKH ,$) +ROGLQJ IL[
$SSURDFK %ULHILQJ
x .HHS WKH $3 HQJDJHG ZLWK )06 RU VHOHFWHG
PRGHV IRU ODWHUDO QDYLJDWLRQ DQG YHUWLFDO
QDYLJDWLRQ DV GHVLUHG
)RU D GHWDLOHG RYHUYLHZ RI WKH DSSURDFK EULHILQJ
UHIHU WR WKH %ULHILQJ 1RWH ² $SSURDFK DQG x .HHS ERWK QDYLJDWLRQ GLVSOD\V 1'V LQ 0$3
*RDURXQG EULHILQJ PRGH XQOHVV WKH )06 QDYLJDWLRQ DFFXUDF\ LV
JUHDWHU WKDQ 1P
x 5HYLHZ WHUUDLQ IHDWXUHV REVWDFOHV SRVLWLRQ DQG
RWKHU REVWDFOH FOHDUDQFH DZDUHQHVV LWHPV x ,I )06 ODWHUDO QDYLJDWLRQ PRGH LV XVHG
x &RQILUP WKH DUULYDO PLQLPXP VDIH DOWLWXGH &KHFN WKH )06 QDYLJDWLRQ DFFXUDF\ OHYHO
06$ HJ 5, RU +,*+ RU >«@ GHSHQGLQJ RQ WKH

)06 W\SH DQG VWDQGDUG
x 5HYLHZ WKH DSSURDFK SURFHGXUH IL[HV DOWLWXGH
FRQVWUDLQWV DQG VSHHG UHVWULFWLRQV UHTXLUHG &KHFN 1' IRU FRUUHFW IOLJKW SODQ DQG IRU
QDYDLGV HWF FRUUHFW 72 :37
x 5HYLHZ WKH DSSURDFK YHUWLFDO SURILOH VWHSGRZQ &RQILUP WKH )06 1$9 PRGH HQJDJHPHQW
DOWLWXGHV DQG 0'$ + RQ )0$ DQG
x 6HWFKHFN WKH 0'$ + RQ WKH EDUR DOWLPHWHU

x $GMXVW WKH GHVFHQW UDWH IRU UHDFKLQJ WKH ,$) DW
EXJ
WKH FKDUWHGSUHVFULEHG DOWLWXGH DQG SODQQHG
x 5HYLHZ WKH H[SHFWHG YLVXDO UHIHUHQFHV DLUVSHHG
DSSURDFK DQG UXQZD\ OLJKWLQJ

x (VWDEOLVK WKH GHVLUHG FRQILJXUDWLRQ DQG VSHHG
x 5HYLHZ WKH PLVVHGDSSURDFK SURFHGXUH

&OHDQ FRQILJXUDWLRQ RU VODWV H[WHQGHG DQG

3DJH
x $GMXVW WKH ZHDWKHU UDGDU JDLQ DQG WLOW DV )RU D /2& RU /2& '0( DSSURDFK VHW WKH
DSSOLFDEOH IRU RSWLPXP XVH RI UDGDU FDSDELOLW\ ILQDO DSSURDFK FRXUVH RQ WKH ,/6 FRXUVH
IRU ZHDWKHU DYRLGDQFH DQGRU HQKDQFHG VHOHFWRU DQG DUP WKH ORFDOL]HU PRGH
KRUL]RQWDO VLWXDWLRQDO DZDUHQHVV
'LIIHUHQW SURFHGXUHV PD\ DSSO\ GHSHQGLQJ
RQ ZKHWKHU WKH GHVLUHG ,/6'0( LV LQ WKH
)06 GDWDEDVH RU QRW
8SRQ UHDFKLQJ WKH ,$) RU +ROGLQJ IL[
x ,I )06 ODWHUDO QDYLJDWLRQ PRGH ZLOO EH XVHG

x &KHFN DQG FRQILUP WKH FRUUHFW VHTXHQFLQJ
EH\RQG WKH ,$) RU KROGLQJ IL[ NHHS ERWK 1'V LQ
RI WKH )06 IOLJKW SODQ
0$3 PRGH
7KH 72 :37 VKRXOG EH WKH )$)
x ,I VHOHFWHG KHDGLQJ RU ORFDOL]HU PRGH ZLOO EH
XVHG WR FDSWXUH DQG WUDFN WKH ILQDO DSSURDFK ,I D 72 :37 RWKHU WKDQ WKH )$) LV
FRXUVH GLVSOD\HG RQ WKH 1' SHUIRUP D ',5 72
>)$)@
6HW WKH 3) 1' WR $5& PRGH RU 526(
PRGH 1RWH
7KH 31) PD\ NHHS WKH 1' LQ 0$3 PRGH (QVXULQJ WKH FRUUHFW VHTXHQFLQJ RI WKH )06
IRU VLWXDWLRQDO DZDUHQHVV LH ZLWK GLVSOD\ IOLJKW SODQ LV HVVHQWLDO WR EH DEOH
RI VSHHG DQG DOWLWXGH FRQVWUDLQWV WR UHHQJDJH WKH 1$9 PRGH LQ FDVH RI
JRDURXQG
'XULQJ WKH KROGLQJ SDWWHUQ RU ZKHQ VXLWDEOH

%HIRUH UHDFKLQJ WKH )$) RU WKH )LQDO 'HVFHQW
x &RQILJXUH WKH DLUFUDIW 3RLQW LI GLIIHUHQW
6ODWV H[WHQGHG RQO\ RU DSSURDFK IODSV DQG x $OLJQ WKH DLUFUDIW ZLWKLQ GHJUHH ZLWK WKH ILQDO
$VVRFLDWHG PDQHXYHULQJ VSHHG

DSSURDFK FRXUVH
x 6HOHFW WKH ODQGLQJ JHDU GRZQ
([LWLQJ WKH KROGLQJ SDWWHUQ x $UP WKH JURXQG VSRLOHUV
x 6HOHFW WKH KROGLQJ (;,7 SURPSW LQ RUGHU WR DOORZ x 6HW ODQGLQJ IODSV
WKH FRUUHFW VHTXHQFLQJ RI WKH )06 IOLJKW SODQ
x 6HW DQG HVWDEOLVK WKH ILQDO DSSURDFK VSHHG
x 6HW WKH *$ DOWLWXGH LI WKH *$ DOWLWXGH LV WKH

/HDYLQJ WKH KROGLQJ SDWWHUQ VDPH DV WKH )$) FURVVLQJ DOWLWXGH VHW WKH *$
DOWLWXGH RQO\ DIWHU LQLWLDWLQJ WKH ILQDO GHVFHQW
x ,I )06 ODWHUDO QDYLJDWLRQ PRGH LV QRW XVHG XVH
WKH VHOHFWHG KHDGLQJ PRGH RU WKH WUDFN PRGH x 3HUIRUP WKH /$1',1* FKHFNOLVW
DV DYDLODEOH WR LQWHUFHSW WKH ILQDO DSSURDFK
x ,I XVH RI )06 YHUWLFDO QDYLJDWLRQ LV QRW
FRXUVH DV IROORZV
DXWKRUL]HG EH\RQG WKH )$) GHVHOHFW WKH )06
)RU DQ 1'% DSSURDFK VHW WKH ILQDO YHUWLFDO QDYLJDWLRQ PRGH E\ VHOHFWLQJ WKH DOWLWXGH
DSSURDFK FRXUVH RQ WKH ,/6 FRXUVH VHOHFWRU KROG RU WKH YHUWLFDO VSHHG PRGH DV UHTXLUHG
WKLV ZLOO VHW WKH ,/6 FRXUVH SRLQWHU RQ WKH 1'
x ,I 96 PRGH ZLOO EH XVHG DIWHU WKH )$) VHW WKH
DQG SURYLGH D FRXUVH UHIHUHQFH
SXEOLVKHG RU FRPSXWHG YHUWLFDO VSHHG DQG
)RU D 925 RU 925'0( DSSURDFK VHW WKH FRXUVH DQGRU
ILQDO DSSURDFK FRXUVH RQ WKH 925 FRXUVH
x ,I IOLJKW SDWK YHFWRU )39 DV DYDLODEOH ZLOO EH
VHOHFWRU EXW GR QRW DUP WKH 925 PRGH
XVHG DIWHU WKH )$) VHW WKH SXEOLVKHG RU
&DSWXUH DQG WUDFN WKH 925 FRXUVH XVLQJ FRPSXWHG IOLJKW SDWK DQJOH )3$ DQG WUDFN
WKH VHOHFWHG KHDGLQJ RU WUDFN PRGH

3DJH
$SSURDFKLQJ WKH )$) RU WKH )LQDO 'HVFHQW )L[ $W 0'$+ UHDFKLQJ WKH 9'3
)')
x ,I DGHTXDWH YLVXDO UHIHUHQFHV DUH DFTXLUHG
7\SLFDOO\ QP WR QP EHIRUH UHDFKLQJ WKH )$)
)') LH WR EHJLQ WKH GHVFHQW DW WKH )$) )')
'LVFRQQHFW WKH $3 DQG FRQWLQXH WKH
DSSURDFK YLVXDOO\ WKH DXWRWKURWWOHDXWRWKUXVW
RQ DQ DFFXUDWH SURILOH
VKRXOG UHPDLQ HQJDJHG LQ VSHHG PRGH
x (QJDJH WKH 96 PRGH DQG FKHFN 96 PRGH GRZQ WR WKH UHWDUG SRLQW DV DSSOLFDEOH
HQJDJHPHQW RQ )0$
x ,I DGHTXDWH YLVXDO UHIHUHQFHV DUH QRW DFTXLUHG
x 6HW WKH SXEOLVKHG RU FRPSXWHG YHUWLFDO VSHHG
DV D IXQFWLRQ RI WKH JURXQG VSHHG
,QLWLDWH D JRDURXQG DQG
2YHUIO\ WKH 0$3 WR HQVXUH DGHTXDWH

x 6HOHFW )39 DV DSSOLFDEOH REVWDFOH FOHDUDQFH DQG IO\ WKH SXEOLVKHG
PLVVHGDSSURDFK SURFHGXUH RU IROORZ $7&
x 6WDUW WLPLQJ DV UHTXLUHG DQG LQVWUXFWLRQV
x &URVVFKHFN DQG DQQRXQFH WKH QH[W IL[ RU '0(

GLVWDQFH DV DSSOLFDEOH DQG FURVVLQJ DOWLWXGH )DFWRUV LQ 1RQ3UHFLVLRQ $SSURDFKHV
7UDLQLQJ IHHGEDFN DQG UHWXUQ RQ LQVHUYLFH

'XULQJ WKH GHVFHQW WRZDUGV WKH 0'$+ H[SHULHQFH LQGLFDWH WKDW WKH IROORZLQJ DGYHUVH
IDFWRUV DQG HUURUV DUH LQYROYHG IUHTXHQWO\ LQ QRQ
x 0RQLWRU WKH YHUWLFDO VSHHG IOLJKW SDWK YHFWRU DV SUHFLVLRQ DSSURDFKHV
DYDLODEOH FRXUVH GLVWDQFHV DOWLWXGHV DQG FDOO
x 8VH RI LQFRUUHFW RU RXWGDWHG LQVWUXPHQW
RXW WKH SXEOLVKHG YHUWLFDO SURILOH DW HDFK VDIHW\
DSSURDFK FKDUWV
DOWLWXGH GLVWDQFH FKHFN
&KHFN DQG DQQRXQFH WKH DOWLWXGH GHYLDWLRQ x /DWH DLUFUDIW GHVFHQW SUHSDUDWLRQ
IURP FKDUWHG FURVVLQJ DOWLWXGH
x )06 QDYLJDWLRQ DFFXUDF\ QRW FKHFNHG
$GMXVW WKH YHUWLFDO VSHHG DV UHTXLUHG DQG
x )06 IOLJKW SODQ QRW FRUUHFWO\ VHWXS
&DOO RXW WKH QH[W IL[ RU '0( GLVWDQFH DQG
WKH DVVRFLDWHG FURVVLQJ DOWLWXGH x 1DYDLGV QRW FRUUHFWO\ WXQHG IUHTXHQF\
LGHQWLILFDWLRQ RU FRXUVH
x 6HW RU FRQILUP WKH JRDURXQG DOWLWXGH RQ )&8
x ,QFRPSOHWH EULHILQJ
$W 0'$+ UDWH RI GHVFHQW

x ,QFRUUHFW FKRLFH RI DXWRSLORW PRGHV
LH 0'$+ WR IW
x ,QFRUUHFW HQWU\ RI DXWRSLORW RU DXWRWKURWWOH

x ,I WKH DSSURDFK KDV QRW EHHQ VXUYH\HG DQGRU
WDUJHWV
LI WKH RSHUDWLRQDO DXWKRULWLHV GR QRW DFFHSW WKH
0'$+ DV D '$+ DQWLFLSDWH WKH JRDURXQG
x ,QDGHTXDWH PRQLWRULQJ RI UDZ GDWD
GHFLVLRQ WR SUHYHQW XQGHUVKRRWLQJ WKH 0'$ +
x $EVHQFH RI FURVVFKHFN DQGRU LQHIIHFWLYH EDFN

XS E\ 3) DQG 31)

3DJH
x ,QDFFXUDWH WUDFNLQJ RI ILQDO DSSURDFK FRXUVH x %HJLQQLQJ WKH ILQDO GHVFHQW DW WKH H[DFW ILQDO
ZKHQ XVLQJ WKH VHOHFWHG KHDGLQJ RU WUDFN GHVFHQW IL[
PRGH
x 0DLQWDLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH DQG RU
x /DWH DLUFUDIW FRQILJXUDWLRQ YHUWLFDO VSHHG GXULQJ WKH ILQDO GHVFHQW
VHJPHQW
x )LQDO DSSURDFK VSHHG QRW VWDELOL]HG DW )$)
x $FTXLULQJ DQG DQQRXQFLQJ YLVXDO UHIHUHQFHV
x )DLOXUH WR DFFRXQW IRU SUHYDLOLQJ KHDG ZLQG
FRPSRQHQW ZKHQ FRPSXWLQJ WKH YHUWLFDO VSHHG x &DOOLQJ WKH GHFLVLRQ WR ODQG RU JRDURXQG
WDUJHW IRU WKH ILQDO FRQVWDQWDQJOH GHVFHQW
VHJPHQW x 1RW GHVFHQGLQJ EHORZ WKH 0'$+ EHIRUH
UHDFKLQJ WKH 9'3
x ,QFRUUHFW LGHQWLILFDWLRQ RI )$) RU ILQDO GHVFHQW
IL[ x %HLQJ SUHSDUHG DQG PLQGHG WR JRDURXQG
x *RDURXQG DOWLWXGH QRW WLPHO\ VHW
x 3UHPDWXUH GHVFHQW EHORZ WKH QH[W VWHSGRZQ

DOWLWXGH LI PXOWLSOH VWHSGRZQV RU EHORZ WKH
0'$+ DQG
LQIRUPDWLRQ WR VXSSOHPHQW WKH DERYH GLVFXVVLRQ
x $EVHQFH RI LGHQWLILFDWLRQ RU WLPLQJ DV UHOHYDQW
RI WKH 9'3 RU 0$3 x 6WDQGDUG 2SHUDWLQJ 3URFHGXUHV
x 6WDQGDUG &DOOV

6XPPDU\ RI .H\ 3RLQWV x (QHUJ\ 0DQDJHPHQW 'XULQJ
$SSURDFK
7KH VXFFHVVIXO SUHSDUDWLRQ DQG FRQGXFW RI D QRQ
SUHFLVLRQ DSSURDFK VKRXOG LQFOXGH WKH IROORZLQJ NH\ x )O\LQJ 6WDELOL]HG $SSURDFKHV
SRLQWV
x 'HWHUPLQLQJ WKH W\SH RI JXLGDQFH WR EH XVHG
x 3UHSDULQJ WKH )06 DV DSSOLFDEOH

x &RPSOHWLQJ D GHVFHQWDQGDSSURDFK EULHILQJ
x 3ODQQLQJ DLUFUDIW FRQILJXUDWLRQ VHWXS $LUFUDIW 2SHUDWLRQV 3$16236 'RF
x 0RQLWRULQJ WKH GHVFHQW SURILOH

x ,&$2 ± 0DQXDO RI $OO :HDWKHU 2SHUDWLRQV 'RF

x 0DQDJLQJ WKH DLUFUDIW HQHUJ\ GXULQJ
LQWHUPHGLDWH DQG ILQDO DSSURDFK x )$$ 6SHFLDO 1RWLFH WR $LUPHQ $)6

x 1RW GHVFHQGLQJ EHORZ DQ DOWLWXGH EHIRUH

UHDFKLQJ WKH QH[W VWHSGRZQ IL[
x 'HWHUPLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH DQGRU

YHUWLFDO VSHHG IRU WKH ILQDO GHVFHQW VHJPHQW

3DJH
$FTXLVLWLRQRI9LVXDO5HIHUHQFHV
,QWURGXFWLRQ x &$37)2 WDVN VKDULQJ
7KLV WDVN VKDULQJ SURYLGHV DQ DOWHUQDWLYH

7KH WUDQVLWLRQ IURP LQVWUXPHQW UHIHUHQFHV WR YLVXDO
GHILQLWLRQ RI WKH &$37 DQG )2 IXQFWLRQV
UHIHUHQFHV LV DQ LPSRUWDQW HOHPHQW RI DQ\ W\SH RI
GXULQJ WKH DSSURDFK
LQVWUXPHQW DSSURDFK
6RPH YDULDWLRQV H[LVW LQ DLUOLQH RSHUDWLQJ

7KLV RSHUDWLQJ SKLORVRSK\ XVXDOO\ LV UHIHUUHG
WR DV 6KDUHG DSSURDFK RU 0RQLWRUHG
SKLORVRSKLHV DERXW WDVN VKDULQJ IRU
DSSURDFK RU 'HOHJDWHG KDQGOLQJ DSSURDFK
x $FTXLVLWLRQ RI YLVXDO UHIHUHQFHV
x &RQGXFW RI ODQGLQJ DQG
x &RQGXFW RI JRDURXQG
6WDWLVWLFDO GDWD
7KH ODFN RI DFTXLVLWLRQ DGHTXDWH YLVXDO UHIHUHQFHV
7ZR RSHUDWLQJ SKLORVRSKLHV DUH FRPPRQO\ XVHG IRU RU WKH ORVV RI YLVXDO UHIHUHQFHV LV D IUHTXHQW FDXVDO
WDVN VKDULQJ GXULQJ DSSURDFK IDFWRU LQ DSSURDFKDQGODQGLQJ DFFLGHQW WKLV
LQFOXGHV
x 3)31) WDVN VKDULQJ
x 'HVFHQGLQJ EHORZ WKH 0'$+ RU '$+ ZLWKRXW
7KH WDVN VKDULQJ IRU WKH DFTXLVLWLRQ RI YLVXDO
DGHTXDWH YLVXDO UHIHUHQFHV RU KDYLQJ DFTXLUHG
UHIHUHQFHV GHSHQGV RQ
LQFRUUHFW YLVXDO UHIHUHQFHV HJ D OLJKWHG DUHD
WKH W\SH RI DSSURDFK LH RQ WKH WLPH LQ WKH DLUSRUW YLFLQLW\ D WD[LZD\ RU DQ RWKHU
DYDLODEOH IRU WKH DFTXLVLWLRQ RI YLVXDO UXQZD\
UHIHUHQFHV DQG
x &RQWLQXLQJ WKH DSSURDFK DIWHU WKH ORVV RI YLVXDO
WKH XVH RI DXWRPDWLRQ LH RQ WKH OHYHO
UHIHUHQFHV HJ EHFDXVH RI D IDVW PRYLQJ
RI DXWRPDWLRQ DQG UHGXQGDQF\
UDLQVKRZHU RU IRJ SDWFK
7KH $LUEXV ,QGXVWULH RSHUDWLQJ SKLORVRSK\
DQG WUDLQLQJ SKLORVRSK\ SURPRWH D 3)31)
WDVN VKDULQJ ZLWK DFTXLVLWLRQ RI YLVXDO &),7 DZDUHQHVV
UHIHUHQFHV E\
'XULQJ WKH ILQDO GHVFHQW 3) DQG 31) VKRXOG
31) IRU QRQSUHFLVLRQ DQG &$7 , ,/6
PRQLWRU WKH YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK
DSSURDFKHV DQG
DQG VKRXOG QRW GHVFHQG EHORZ WKH FKDUWHG PLQLPXP
3) IRU &$7 ,, &$7 ,,, ,/6 DSSURDFKHV VDIH DOWLWXGH EHIRUH UHDFKLQJ WKH QH[W GHVFHQW IL[
LH D '0( GLVWDQFH ORFDWRU RU RWKHU UHIHUHQFH
)RU &$7 ,, &$7 ,,, RSHUDWLRQV WKH
&$37 XVXDOO\ LV WKH 3) DQG RQO\ DQ
,Q ,0& RU DW QLJKW 3) VKRXOG UHVSRQG LPPHGLDWHO\
DXWRPDWLF DSSURDFK DQG ODQGLQJ LV
WR DQ\ *3:6 ZDUQLQJ RU (*3:6 7$:6 ZDUQLQJ
FRQVLGHUHG

3DJH
'HILQLQJ 9LVXDO 5HIHUHQFHV :KHQ XVLQJ H[WHUQDO UHIHUHQFHV WKH DYDLODEOH YLVXDO
FXHV PXVW DOORZ WKH SLORW WR DVVHVV WKH SLWFK DWWLWXGH
:KHQ D ORZ YLVLELOLW\ DSSURDFK LV DQWLFLSDWHG DQG EDQN DQJOH WKH ODWHUDO SRVLWLRQ DQG KHDGLQJ WKH
WKH DSSURDFK EULHILQJ VKRXOG LQFOXGH D WKRURXJK KRUL]RQWDO IOLJKW SDWK WUDFN DQG YHUWLFDO IOLJKW SDWK
UHYLHZ RI WKH DSSURDFK OLJKW V\VWHP $/6 XVLQJ WKH IOLJKW SDWK DQJOH
LQVWUXPHQW DSSURDFK FKDUW DQG WKH DLUSRUW FKDUW

$IWHU DGHTXDWH YLVXDO UHIHUHQFHV KDYH EHHQ
'HSHQGLQJ RQ WKH W\SH RI DSSURDFK DQG SUHYDLOLQJ DFTXLUHG WR DOORZ GHVFHQGLQJ EHORZ WKH 0'$+ RU
FHLOLQJ DQG YLVLELOLW\ FRQGLWLRQV WKH OLJKWLQJ EHORZ WKH '$+ WKH GLIIHUHQW HOHPHQWV RI WKH
HOHPHQWV H[SHFWHG WR EH DYDLODEOH DW WKH ILUVW DSSURDFK OLJKW V\VWHP SURYLGH YLVXDO FXHV IRU
YLVXDO FRQWDFW VKRXOG EH GLVFXVVHG

x $VVHVVLQJ WKH DLUFUDIW SRVLWLRQ GULIW DQJOH DQG
GLVWDQFH WR WKH WRXFKGRZQ ]RQH DQG
&RQWLQXLQJ WKH DSSURDFK EHORZ WKH 0'$+ RU
'$+ LV SHUPLWWHG RQO\ LI DW OHDVW RQH RI WKH
x 3HUFHLYLQJ DQ\ UDWH RI FKDQJH GXULQJ WKH ILQDO
IROORZLQJ YLVXDO UHIHUHQFHV LV GLVWLQFWO\ YLVLEOH DQG
SKDVH RI WKH DSSURDFK
LGHQWLILDEOH DV GHWDLOHG LQ WKH RSHUDWRU¶V DSSOLFDEOH
UHJXODWLRQ
x 7KH DSSURDFK OLJKW V\VWHP $/6 $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

HJ VHTXHQFHG IODVKLQJ OLJKWV VWHDG\
7KH WDVN VKDULQJ IRU DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV
UXQZD\ DOLJQPHQW OLJKWV IW RU IW
DQG IRU PRQLWRULQJ WKH IOLJKW SDWK DQG DLUFUDIW
FURVV EDUV
V\VWHPV YDULHV GHSHQGLQJ RQ
x 7KH >UXQZD\@ WKUHVKROG x 7KH W\SH RI DSSURDFK LH FULWLFDOLW\ RI WLPH

DYDLODEOH IRU DFTXLULQJ WKH YLVXDO UHIHUHQFHV
7KH WKUHVKROG PDUNLQJV RU
DQG
7KH WKUHVKROG OLJKWV
x 7KH OHYHO RI DXWRPDWLRQ EHLQJ XVHG
x 7KH UXQZD\ HQG LGHQWLILFDWLRQ OLJKWV 5(,/
KDQG IO\LQJ XVLQJ )'
x 7KH YLVXDO DSSURDFK VORSH LQGLFDWRU 9$6, RU RU

3$3,
$3 HQJDJHG LH $3 PRQLWRULQJ VLQJOH $3 RU
GXDO $3 DSSURDFK
x 7KH WRXFKGRZQ ]RQH
7KH WRXFKGRZQ ]RQH PDUNLQJV

7KH IRUPDO DQQRXQFHPHQW RI YLVXDO UHIHUHQFHV
7KH WRXFKGRZQ ]RQH OLJKWV RU VKRXOG EH OLPLWHG WR WKH UXQZD\ RU UXQZD\DLUSRUW
HQYLURQPHQW DOWKRXJK DQQRXQFLQJ WKH YLHZ RI WKH
x 7KH UXQZD\ JURXQG PD\ EH FRQVLGHUHG
7KH UXQZD\ PDUNLQJV
1RQSUHFLVLRQ DQG &$7 , ,/6 DSSURDFKHV

7KH UXQZD\ HGJHV RU FHQWHUOLQH OLJKWV
1RQSUHFLVLRQ DSSURDFKHV DQG &$7 , ,/6

$FTXLULQJ DGHTXDWH YLVXDO UHIHUHQFHV UHTXLUHV WKDW DSSURDFKHV FDQ EH IORZQ PDQXDOO\ IROORZLQJ WKH )'
WKH YLVXDO FXHV KDYH EHHQ LQ YLHZ IRU VXIILFLHQW WLPH RUGHUV RU LQVWUXPHQWV UDZ GDWD RU ZLWK $3 HQJDJHG
IRU WKH SLORW WR PDNH DQ DVVHVVPHQW WKDW WKH ODQGLQJ
FDQ EH FRPSOHWHG ZLWKRXW IXUWKHU UHIHUHQFH WR WKH
DLUFUDIW JXLGDQFHV\VWHPV

3DJH
7KH 3) LV HQJDJHG GLUHFWO\ LQ HLWKHU ,Q &$7 ,,, ZHDWKHU FRQGLWLRQV DXWRPDWLF ODQGLQJ
XVXDOO\ LV PDQGDWRU\
x +DQGIO\LQJ WKH DLUSODQH DQG IROORZLQJ WKH )'
RUGHUV ZKLOH PRQLWRULQJ LQVWUXPHQWV DQG QDYDLGV

&RQVHTXHQWO\ WKH WHUPV ³YLVXDO UHIHUHQFHV´ GR QRW
UDZ GDWD
KDYH WKH VDPH PHDQLQJ IRU &$7 ,, DQG &$7 ,,,
RU DSSURDFKHV
x 6XSHUYLVLQJ WKH DXWRSLORW RSHUDWLRQ EHLQJ UHDG\

)RU &$7 ,, DSSURDFKHV KDYLQJ YLVXDO UHIHUHQFHV
WR WDNH RYHU LI UHTXLUHG
PHDQV EHLQJ DEOH WR VHH WR ODQG LH EHLQJ DEOH WR
ODQG PDQXDOO\
7KH 31) WKHUHIRUH LV UHVSRQVLEOH IRU SURJUHVVLYHO\
DFTXLULQJ DQG DQQRXQFLQJ WKH YLVXDO UHIHUHQFHV )RU &$7 ,,, DSSURDFKHV KDYLQJ YLVXDO UHIHUHQFHV
ZKLOH PRQLWRULQJ WKH IOLJKW SURJUHVV DQG EDFNLQJXS PHDQV EHLQJ DEOH WR VHH WR YHULI\ WKH DLUFUDIW
WKH 3) SRVLWLRQ
7KH 31) VFDQV DOWHUQDWLYHO\ LQVLGH DQG RXWVLGH 7KH 86 )$5 DQG WKH (XURSHDQ -$5236
DQQRXQFHV IOLJKWSDUDPHWHU GHYLDWLRQV DQG DFFRXQW IRU WKLV LQWHUSUHWDWLRQ LQ GHILQLQJ WKH
DQQRXQFHV PLQLPXP YLVXDO FXHV WKDW PXVW EH DYDLODEOH DW WKH

'$5$ '+
x ³9LVXDO³ RU ZKDWHYHU YLVXDO UHIHUHQFH LV LQ
VLJKW LI DGHTXDWH YLVXDO UHIHUHQFHV DUH )RU &$7 ,,, ZLWK 1R '+ QR YLVXDO FXH LV VSHFLILHG
DYDLODEOH RU EXW LW LV D UHFRPPHQGHG SUDFWLFH IRU WKH 3) WR ORRN
IRU YLVXDO UHIHUHQFHV EHIRUH WRXFKGRZQ WKHVH YLVXDO
x ³2QH KXQGUHG DERYH´ WKHQ ³0LQLPXP³ LI QR
FXHV DUH ODWHU XVHG IRU PRQLWRULQJ WKH $3 JXLGDQFH
UDGLRDOWLPHWHU DXWRFDOORXW LV DYDLODEOH LI
GXULQJ WKH UROORXW SKDVH
DGHTXDWH YLVXDO UHIHUHQFHV DUH QRW DYDLODEOH
'XULQJ DQ DXWRPDWLF DSSURDFK DQG ODQGLQJ WKH IOLJKW

1RWH
SDWK LV IXOO\ PRQLWRUHG E\ WKH $3 DXWRODQG ZDUQLQJ
7KH 31) VKRXOG QRW OHDQ IRUZDUG ZKLOH DWWHPSWLQJ DQG VXSHUYLVHG E\ WKH 31) H[FHVVLYH GHYLDWLRQ
WR DFTXLUH YLVXDO UHIHUHQFHV FDOORXWV
,I WKH 31) FDOOV ³9LVXDO´ ZKLOH OHDQLQJ IRUZDUG

WKH 3) PLJKW QRW KDYH YLVXDO UHIHUHQFHV \HW 7KH 3) FDQ FRQFHQWUDWH KLVKHU DWWHQWLRQ RQ WKH
DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV SURJUHVVLYHO\
EHFDXVH RI KLVKHU GLIIHUHQW YLHZLQJ DQJOH FRFNSLW
LQFUHDVLQJ KLVKHU H[WHUQDO VFDQQLQJ DV WKH '+ LV
FXWRII DQJOH
DSSURDFKHG
7KH 3) FRQILUPV WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV

:KHQ DQ DSSURDFK LV FRQGXFWHG FORVH WR WKH
DQG DQQRXQFHV ³ /DQGLQJ ³ RU ³ *R $URXQG ³
PLQLPXPV WKH WLPH DYDLODEOH IRU PDNLQJ WKH
LI YLVXDO UHIHUHQFHV DUH QRW DGHTXDWH
WUDQVLWLRQ IURP LQVWUXPHQW UHIHUHQFHV WR YLVXDO
UHIHUHQFHV LV H[WUHPHO\ VKRUW WKH 3) PXVW WKHUHIRUH
)RU ODQGLQJ WKH 3) SURJUHVVLYHO\ WUDQVLWLRQV IURP
GHGLFDWH KLVKHU SULPDU\ DWWHQWLRQ WR WKH DFTXLVLWLRQ
LQVWUXPHQW IO\LQJ WR H[WHUQDO YLVXDO UHIHUHQFHV
RI YLVXDO UHIHUHQFHV
7KH 31) PXVW PDLQWDLQ LQVWUXPHQW UHIHUHQFHV

&$7 ,, &$7 ,,, ,/6 DSSURDFKHV
WKURXJKRXW WKH DSSURDFK DQG ODQGLQJ RU JRDURXQG
WR
&$7 ,, &$7 ,,, ,/6 DSSURDFKHV DUH IORZQ PDNLQJ
XVH RI WKH DXWRPDWLF ODQGLQJ V\VWHP x 0RQLWRU WKH IOLJKW SDWK DQG WKH LQVWUXPHQWV DQG
&$7 ,, DXWRPDWLF DSSURDFKHV FDQ EH IROORZHG E\ x %H UHDG\ WR FDOO DQ\ IOLJKWSDUDPHWHU H[FHVVLYH
D PDQXDO ODQGLQJ DOWKRXJK WKH VWDQGDUG RSHUDWLQJ GHYLDWLRQ RU ZDUQLQJ
SURFHGXUH LV WR XVH WKH DXWRODQG FDSDELOLW\

3DJH
6KDUHG $SSURDFK 0RQLWRUHG $SSURDFK ,PSOHPHQWDWLRQ
'HOHJDWHG +DQGOLQJ $SSURDFK 7KH LPSOHPHQWDWLRQ RI WKH 6KDUHG DSSURDFK

0RQLWRUHG DSSURDFK 'HOHJDWHG KDQGOLQJ DSSURDFK
'HVFULSWLRQ FRQFHSW UHTXLUHV WKH GHYHORSPHQW RI VSHFLILF 623V
DQG VWDQGDUG FDOOV
7KH 6KDUHG DSSURDFK RU 0RQLWRUHG DSSURDFK RU
'HOHJDWHG KDQGOLQJ DSSURDFK SURYLGHV DQ 7KH VHTXHQFH RI SODQQHG RU FRQGLWLRQDO DFWLRQV DQG
DOWHUQDWLYH GHILQLWLRQ RI WKH 3) DQG 31) IXQFWLRQV FDOORXWV VKRXOG EH WKRURXJKO\ DQG DFFXUDWHO\ EULHIHG
EDVHG RQ D &$37)2 WDVN VKDULQJ GXULQJ WKH DSSURDFK EULHILQJ
7KLV WDVN VKDULQJ FDQ EH VXPPDUL]HG DV IROORZV 7KLV VHTXHQFH RI DFWLRQV DQG FDOORXWV XVXDOO\
LQFOXGH WKH IROORZLQJ
x 5HJDUGOHVV RI ZKR ZDV WKH 3) IRU WKH VHFWRU
WKH )2 LV DOZD\V WKH 3) IRU WKH DSSURDFK
)RU WKH &$37
x 7KH &$37 LV 31) DQG PRQLWRUV WKH DSSURDFK x ,I YLVXDO UHIHUHQFHV DUH DFTXLUHG EHIRUH RU DW
DQG WKH DFTXLVLWLRQ RI WKH YLVXDO UHIHUHQFHV '$+
x :KHQ UHDFKLQJ WKH '$+ RU EHIRUH GHSHQGLQJ &DOO /DQGLQJ DQG

RQ WKH RSHUDWRU¶V SROLF\ IRU &$7 ,, &$7 ,,,
7DNHRYHU FRQWUROV LH FRQWURO ZKHHO VLGH
VWLFN DQG WKURWWOHWKUXVW OHYHUV DQG FDOO , KDYH
7KH )2 ± 3) FDOOV 0LQLPXP
FRQWURO RU 0\ FRQWUROV DV SHU FRPSDQ\
,I YLVXDO UHIHUHQFHV DUH DFTXLUHG WKH &$37 623V
FDOOV /DQGLQJ WDNHV RYHU WKH FRQWUROV

LH IOLJKW FRQWUROV DQG WKURWWOH OHYHUV DQG x ,I YLVXDO UHIHUHQFHV DUH QRW DFTXLUHG DW '$+
FRQGXFW WKH ODQGLQJ
&DOO *RDURXQG PRQLWRU DQG EDFNXS WKH )2
GXULQJ WKH JRDURXQG LQLWLDWLRQ DQG PLVVHG
,I YLVXDO UHIHUHQFHV DUH QRW DFTXLUHG WKH
DSSURDFK
&$37 FDOOV *RDURXQG DQG WKH )2 LQLWLDWHV
WKH JRDURXQG DQG IOLHV WKH PLVVHGDSSURDFK
)RU WKH )2
:KDWHYHU WKH GHFLVLRQ /DQGLQJ RU *RDURXQG x ,I &$37 FDOOV /DQGLQJ

WKH )2 PDLQWDLQV LQVWUXPHQW UHIHUHQFHV IRU
WKH FRPSOHWH DSSURDFK DQG ODQGLQJ RU JRDURXQG &DOO <RX KDYH FRQWURO RU <RXU FRQWUROV DV SHU
DQG PLVVHGDSSURDFK FRPSDQ\¶V 623V
&RQWLQXH PRQLWRULQJ LQVWUXPHQW UHIHUHQFHV

'HSHQGLQJ RQ WKH )2 H[SHULHQFH WKH DERYH UROHV
FDQ EH UHYHUVHG
x ,I &$37 FDOOV *RDURXQG
7KLV WDVN VKDULQJ HOLPLQDWHV WKH WUDQVLWLRQ IURP ,QLWLDWH LPPHGLDWHO\ WKH JRDURXQG DQG IO\ WKH
LQVWUXPHQW IO\LQJ WR YLVXDO IO\LQJ DQG LQ FDVH RI D PLVVHGDSSURDFK
JRDURXQG IURP VHPLYLVXDO UHIHUHQFHV EDFN WR
LQVWUXPHQW IO\LQJ EXW LQYROYHV D FKDQJHRYHU RI x ,I &$37 GRHV QRW PDNH DQ\ FDOO RU GRHV QRW
FRQWUROV DW D ODWH VWDJH LQ WKH DSSURDFK WDNHRYHU FRQWUROV DQG WKURWWOH OHYHUV
SRVVLEOH VXEWOH LQFDSDFLWDWLRQ
'HSHQGLQJ RQ WKH DLUOLQH¶V RSHUDWLQJ SKLORVRSK\ WKLV
FRQFHSW LV DSSOLFDEOH WR &DOO ³*RDURXQG)ODSV´ DQG LQLWLDWH DQ
LPPHGLDWH JRDURXQG
x &$7 ,, &$7 ,,, DSSURDFKHV RQO\ IRU DOO RWKHU
DSSURDFKHV WKH 3) LV DOVR WKH SLORWODQGLQJ RU
7KH FKDQJH RI FRQWUROV DW D ODWH VWDJH RI WKH
x $OO W\SHV RI DSSURDFKHV H[FHSW DXWRPDWLF DSSURDFK UHTXLUHV SUHFLVH FDOORXWV DQG DFWLRQ
ODQGLQJV ZKHUH WKH &DSWDLQ UHVXPHV FRQWURO JHVWXUHV WR SUHYHQW DQ\ PLVXQGHUVWDQGLQJ DQGRU
HDUOLHU W\SLFDOO\ IURP IW 5$ WR IW 5$ GHOD\HG DFWLRQ

3DJH
$SSOLFDEOH FDOORXWV DQG DFWLRQV VKRXOG EH UHFDOOHG /RZ EHORZ JOLGH SDWK
E\ WKH IOLJKW FUHZ GXULQJ WKH &$7 ,, &$7 ,,, EULHILQJ

$ VKDOORZ DSSURDFK ZLWK KLJK WKUXVW ZKHQ EHLQJ WRR
ORZ PD\ UHVXOW LQ D IORDWLQJ IODUH DQG D ORQJ ODQGLQJ
7KH FUHZ VKRXOG PDLQWDLQ OHYHO IOLJKW XQWLO WKH
7KH LPSRUWDQFH RI WDVN VKDULQJ DQG VWDQGDUGV FRUUHFW IOLJKW SDWK LV HVWDEOLVKHG
FDOORXWV GXULQJ WKH ILQDO SKDVH RI WKH DSSURDFK
VKRXOG EH HPSKDVL]HG
/DWHUDO RIIVHW
6WDQGDUG FDOOV IRU FRQILUPLQJ WKH DFTXLVLWLRQ RI
YLVXDO UHIHUHQFHV YDU\ IURP DLUOLQH WR DLUOLQH 'HWHUPLQH DQ DLPLQJ SRLQW RQ WKH H[WHQGHG UXQZD\
FHQWHUOLQH DSSUR[LPDWHO\ KDOI WKH GLVWDQFH WR
9LVXDO RU >DFTXLUHG YLVXDO UHIHUHQFH@ XVXDOO\ LV XVHG WKH WRXFKGRZQ SRLQW DQG DLP WRZDUGV WKLV SRLQW
LI DGHTXDWH YLVXDO UHIHUHQFHV DUH DYDLODEOH DQG LI WKH ZKLOH PDLQWDLQLQJ WKH FRUUHFW JOLGH SDWK DLUVSHHG
DLUFUDIW LV FRUUHFWO\ DOLJQHG DQG RQ WKH DSSURDFK DQG WKUXVW
JOLGH SDWK RWKHUZLVH WKH FDOORXW 9LVXDO RU >DFTXLUHG
YLVXDO UHIHUHQFH@ LV IROORZHG E\ DQ DVVHVVPHQW RI 7R SUHYHQW RYHUVKRRWLQJ WKH UXQZD\ FHQWHUOLQH
WKH ODWHUDO GHYLDWLRQ RU YHUWLFDO GHYLDWLRQ RIIVHW DQWLFLSDWH WKH DOLJQPHQW E\ EHJLQQLQJ WKH ILQDO WXUQ
VKRUWO\ EHIRUH FURVVLQJ WKH H[WHQGHG LQQHU UXQZD\
7KH 3) &$37 GHWHUPLQHV ZKHWKHU WKH ODWHUDO HGJH OLQH
GHYLDWLRQ RU YHUWLFDO GHYLDWLRQ RIIVHW SRVLWLRQ FDQ
EH VDIHO\ FRUUHFWHG DQG DQQRXQFHV &RQWLQXH RU
/DQGLQJ RU *RDURXQG /RVV 2I 9LVXDO 5HIHUHQFHV EHORZ 0'$+
RU '$+
5HFRYHU\ IURP 2IIVHW 3RVLWLRQ ,I ORVV RI DGHTXDWH YLVXDO UHIHUHQFHV RFFXUV ZKHQ
EHORZ WKH 0'$+ RU '$+ DQ LPPHGLDWH JR
5HFRYHU\ IURP D ODWHUDO GHYLDWLRQ RU YHUWLFDO DURXQG PXVW EH LQLWLDWHG
GHYLDWLRQ RIIVHW SRVLWLRQ ZKHQ JRLQJ YLVXDO UHTXLUHV
FDUHIXO FRQWURO RI WKH SLWFK DWWLWXGH EDQN DQJOH DQG 7KH 86 )$5 DQG VWDWH WKDW HDFK
SRZHU ZLWK UHIHUHQFH WR LQVWUXPHQWV WR SUHYHQW FUHZ SLORW >«@ VKDOO LPPHGLDWHO\ H[HFXWH DQ
VSDWLDO GLVRULHQWDWLRQ E\ YLVXDO LOOXVLRQV DSSURSULDWH PLVVHGDSSURDFK SURFHGXUH >«@
ZKHQHYHU >WKH FRQGLWLRQV IRU RSHUDWLQJ EHORZ WKH

7KH 31) LV UHVSRQVLEOH IRU PRQLWRULQJ DXWKRUL]HG 0'$ >RU '+@ DUH QRW PHW
WKH LQVWUXPHQWV DQG IRU FDOOLQJ DQ\ H[FHVVLYH
SDUDPHWHUGHYLDWLRQ IURP HVWDEOLVKHG FULWHULD

9HUWLFDO GHYLDWLRQ 'XULQJ QRQSUHFLVLRQ DSSURDFKHV DQG &$7 , ,/6
DSSURDFKHV ERWK WKH 3) DQG 31) PXVW DFTXLUH
+LJK DERYH JOLGH SDWK
WKH VDPH ± DQG FRUUHFW ± YLVXDO UHIHUHQFHV
7KH XVH RI D KLJK VLQN UDWH ZLWK ORZ WKUXVW ZKHQ 'XULQJ &$7 ,, &$7 ,,, ,/6 DSSURDFKHV DQG DOO
EHLQJ WRR KLJK PD\ UHVXOW LQ ODQGLQJ VKRUW RI WKH VKDUHG DSSURDFKHV WKH )2 PXVW UHPDLQ KHDGGRZQ
UXQZD\ RU LQ D KDUG ODQGLQJ WR PRQLWRU IOLJKW LQVWUXPHQWV GXULQJ WKH FRPSOHWH
DSSURDFK DQG ODQGLQJ DQG JRDURXQG
7KH FUHZ VKRXOG HVWDEOLVK WKH FRUUHFW IOLJKW SDWK QRW
H[FHHGLQJ WKH PD[LPXP SHUPLVVLEOH VLQN UDWH
XVXDOO\ IWPQ

3DJH
$VVRFLDWHG %ULHILQJ 1RWHV 2WKHU 5HIHUHQFHV

7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHYLHZHG WR x 86 1DWLRQDO 7UDQVSRUWDWLRQ 6DIHW\ %RDUG
DPSOLI\ DQG FRPSOHPHQW WKH DERYH LQIRUPDWLRQ 176% ± 6SHFLDO 5HSRUW 176%$$6 ±
6SHFLDO 6WXG\ )OLJKW &UHZ &RRUGLQDWLRQ
3URFHGXUH LQ $LU &DUULHU ,QVWUXPHQW /DQGLQJ
6\VWHP $SSURDFK $FFLGHQWV
x 6WDQGDUG &DOOV
x ,&$2 ± $QQH[ ± 2SHUDWLRQV RI $LUFUDIW 3DUW ,
± ,QWHUQDWLRQDO &RPPHUFLDO $LU 7UDQVSRUW ±
$HURSODQHV
x ,&$2 ± 0DQXDO RI $OO:HDWKHU 2SHUDWLRQV

'RF

ORVV RI YLVXDO UHIHUHQFHV ZKHQ EHORZ 0'$+ RU
'$+ GXULQJ D QRQSUHFLVLRQ DSSURDFK RU D
&$7 , ,/6 DSSURDFK

ORVV RI YLVXDO UHIHUHQFHV ZKHQ EHORZ '$+ RU
5$ '+ GXULQJ D &$7 ,, RU D &$7 ,,, ,/6
DSSURDFK
x )$5 ± ,QVWUXPHQW DSSURDFK

SURFHGXUHV DQG ,)5 ODQGLQJ PLQLPXP
x $& $ UHODWHG WR WKH ORVV RI DGHTXDWH

YLVXDO UHIHUHQFHV
x )$$ $& DQG ' UHODWHG WR

DXWRODQG DQG &$7 ,, &$7 ,,, DSSURDFKHV
x -$5236 $SSHQGL[ WR -$5236

$0& 236 E DQG ,(0 WR
$SSHQGL[ WR -$5236 ± 'HILQLWLRQ RI
UHTXLUHG YLVXDO UHIHUHQFHV IRU YDULRXV W\SHV DQG
FDWHJRULHV RI DSSURDFKHV

3DJH
)O\LQJ9LVXDO$SSURDFKHV
,QWURGXFWLRQ 6WDWLVWLFDO GDWD

$FFHSWLQJ DQ $7& UHTXHVW IRU D YLVXDO DSSURDFK RU 9LVXDO $SSURDFKHV DFFRXQW IRU
UHTXHVWLQJ D YLVXDO DQ DSSURDFK VKRXOG EH x RI DOO DSSURDFKDQGODQGLQJ DFFLGHQWV
HYDOXDWHG FDUHIXOO\ DJDLQVW WKH IROORZLQJ GHFLVLRQ
FULWHULD x RI IDWDO DFFLGHQWV
x &HLOLQJ DQG YLVLELOLW\ FRQGLWLRQV
9LVXDO DSSURDFKHV DW QLJKW SUHVHQW D JUHDWHU ULVN
x 'DUNQHVV RU WZLOLJKW
H[SRVXUH EHFDXVH RI IHZHU YLVXDO FXHV DQG
D JUHDWHU SRWHQWLDO IRU YLVXDO LOOXVLRQV DQG VSDWLDO
x :HDWKHU DFWLYLW\
GLVRULHQWDWLRQ
ZLQG WXUEXOHQFH 'HILQLQJ D YLVXDO DSSURDFK
UDLQ VKRZHUV DQGRU 7KH -$5236 WKH 86 )$$ $HURQDXWLFDO
,QIRUPDWLRQ 0DQXDO $,0 DQG WKH ,&$2 SURYLGH
IRJ RU VPRNH SDWFKHV GLIIHUHQW GHILQLWLRQV IRU YLVXDO DSSURDFKHV
x &UHZ H[SHULHQFH ZLWK DLUSRUW DQG DLUSRUW 7KH 86 )$$ $,0 GHILQLWLRQ LV SURSRVHG DV
HQYLURQPHQW UHIHUHQFH IRU WKLV %ULHILQJ 1RWH
VXUURXQGLQJ WHUUDLQ DQGRU x >$ YLVXDO DSSURDFK LV@ DQ DSSURDFK FRQGXFWHG
RQ DQ LQVWUXPHQW IOLJKW UXOHV ,)5 IOLJKW SODQ
ZKLFK DXWKRUL]HV WKH SLORW WR SURFHHG YLVXDOO\
REVWUXFWLRQV « DQG FOHDU RI FORXGV WR WKH DLUSRUW
x 7KH SLORW PXVW DW DOO WLPHV KDYH HLWKHU WKH
x 5XQZD\ YLVXDO DLGV DLUSRUW RU WKH SUHFHGLQJ DLUFUDIW LQ VLJKW
7\SH RI DSSURDFK OLJKWLQJ V\VWHP DQG x 7KH YLVXDO DSSURDFK PXVW EH DXWKRUL]HG DQG
$YDLODELOLW\ RI D 9$6, RU 3$3,
XQGHU WKH FRQWURO RI WKH DSSURSULDWH DLU WUDIILF
FRQWURO IDFLOLW\ DQG
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG x 5HSRUWHG ZHDWKHU DW WKH DLUSRUW PXVW EH FHLOLQJ
GLVFXVVLRQ RI WKH RSHUDWLRQDO IDFWRUV LQYROYHG LQ WKH DW RU DERYH IW DQG YLVLELOLW\ PLOHV RU
SUHSDUDWLRQ FRQGXFW DQG PRQLWRULQJ RI D YLVXDO JUHDWHU
DSSURDFK

3DJH
)O\LQJ D YLVXDO DSSURDFK DW QLJKW 7HUUDLQ DZDUHQHVV
+D]DUGV DVVRFLDWHG ZLWK YLVXDO DSSURDFKHV DQG :KHQ VHOHFWLQJ RU DFFHSWLQJ D YLVXDO DSSURDFK
ODQGLQJV DW QLJKW PXVW EH IXOO\ XQGHUVWRRG DW QLJKW IOLJKW FUHZ VKRXOG EH DZDUH RI
WKH VXUURXQGLQJ WHUUDLQ IHDWXUHV DQG PDQPDGH
$ YLVXDO DSSURDFK DW QLJKW VKRXOG EH FRQVLGHUHG REVWDFOHV
RQO\ LI
,Q GDUNQHVV DQ XQOLJKWHG KLOOVLGH EHWZHHQ D OLJKWHG
x :HDWKHU LV VXLWDEOH IRU IOLJKW XQGHU 9)5 DUHD DQG WKH UXQZD\ WKUHVKROG PD\ SUHYHQW WKH
IOLJKW FUHZ IURP FRUUHFWO\ SHUFHLYLQJ WKH ULVLQJ
x $ YLVXDO SDWWHUQ RU D SXEOLVKHG 9,68$/ DSSURDFK WHUUDLQ
FKDUW LV DYDLODEOH DQG XVHG
x $ SDWWHUQ DOWLWXGH LV GHILQHG DQG 2EMHFWLYH
x )OLJKW FUHZ LV IDPLOLDU ZLWK DLUSRUW KD]DUGV DQG 7KH REMHFWLYH RI D YLVXDO DSSURDFK LV WR FRQGXFW DQ
REVWUXFWLRQV WKLV LQFOXGHV WKH DYDLODELOLW\ RI DSSURDFK
DFWLYH 127$0V
x 8VLQJ YLVXDO UHIHUHQFHV
$W QLJKW ZKHQ DQ LQVWUXPHQW DSSURDFK LV DYDLODEOH

SDUWLFXODUO\ DQ ,/6 DSSURDFK DQ LQVWUXPHQW
x %HLQJ VWDELOL]HG E\ IW DERYH DLUILHOG
HOHYDWLRQ RU SHU FRPSDQ\ 623V
DSSURDFK VKRXOG EH SUHIHUUHG WR D YLVXDO DSSURDFK
WR UHGXFH WKH ULVN RI DFFLGHQWV FDXVHG E\ YLVXDO
LOOXVLRQV RQ D QRPLQDO GHJUHH JOLGH SDWK
9LVXDO LOOXVLRQV HJ EODFNKROH HIIHFW DIIHFW WKH LQ WKH ODQGLQJ FRQILJXUDWLRQ
IOLJKW FUHZ YHUWLFDO DQG KRUL]RQWDO VLWXDWLRQDO

DZDUHQHVV SDUWLFXODUO\ GXULQJ WKH EDVH OHJ DQG DW WKH ILQDO DSSURDFK VSHHG DQG
ZKHQ WXUQLQJ ILQDO
ZLWK DLUFUDIW DQG FUHZ UHDG\ IRU ODQGLQJ
,I D SUHFLVLRQ DSSURDFK LV QRW DYDLODEOH VHOHFWLQJ DQ
DSSURDFK VXSSRUWHG E\ D 9$6, RU 3$3, ,I WKH DLUFUDIW LV QRW VWDELOL]HG DW IW DERYH DLUILHOG
DV DYDLODEOH VKRXOG EH WKH SUHIHUUHG RSWLRQ HOHYDWLRQ RU LI WKH DSSURDFK EHFRPHV XQVWDEOH ZKHQ
EHORZ IW DERYH DLUILHOG HOHYDWLRQ D JRDURXQG
PXVW EH LQLWLDWHG
9LVXDO $SSURDFK 2YHUYLHZ

7KH IROORZLQJ RYHUYLHZ SURYLGHV D JHQHULF 8VH RI DXWRPDWHG V\VWHPV
GHVFULSWLRQ RI WKH YDULRXV SKDVHV DQG WHFKQLTXHV

LQYROYHG LQ D YLVXDO DSSURDFKHV 7KH XVH RI DXWRPDWHG V\VWHPV DXWRSLORW IOLJKW
GLUHFWRU DXWRWKURWWOHDXWRWKUXVW VKRXOG EH DGDSWHG
WR WKH W\SH RI YLVXDO DSSURDFK SXEOLVKHG DSSURDFK
5HIHUHQFHV RU SDWWHUQ DQG WR WKH $7& HQYLURQPHQW SODQQHG
QDYLJDWLRQ RU UDGDU YHFWRUV
9LVXDO DSSURDFKHV VKRXOG EH SHUIRUPHG ZLWK
UHIHUHQFH WR HLWKHU 'XULQJ WKH ILQDO SKDVH RI WKH DSSURDFK LW LV
UHFRPPHQGHG WR GLVFRQQHFW WKH DXWRSLORW FOHDU WKH
x $ SXEOLVKHG 9,68$/ DSSURDFK FKDUW IRU WKH
IOLJKW GLUHFWRU EDUV NHHS WKH DXWRWKURWWOHDXWRWKUXVW
LQWHQGHG UXQZD\ RU
HQJDJHG LQ VSHHG PRGH DW SLORW¶V GLVFUHWLRQ DQG
VHOHFW WKH IOLJKW SDWK YHFWRU V\PERO DV DYDLODEOH
x 7KH YLVXDO DSSURDFK FLUFXLW SDWWHUQ DOWLWXGH
FRQILJXUDWLRQ DQG VSHHG VFKHGXOH SXEOLVKHG LQ
WKH )&20 RU 45+

3DJH
,QLWLDO LQWHUPHGLDWH DSSURDFK %DVH OHJ
7KH )06 PD\ EH XVHG WR EXLOG WKH WHDUGURS 5HVLVW WKH WHQGHQF\ WR IO\ D FRQWLQXRXV FORVLQJLQ
RXWERXQG OHJ RU WKH GRZQZLQG OHJ IRU HQKDQFHG WXUQ WRZDUGV WKH UXQZD\ WKUHVKROG
KRUL]RQWDO VLWXDWLRQDO DZDUHQHVV 1HYHUWKHOHVV WKLV
VKRXOG EH SODQQHG DQG SUHSDUHG ZKHQ VHWWLQJ %HIRUH WXUQLQJ ILQDO GHSHQGLQJ RQ WKH GLVWDQFH WR
WKH )06 EHIRUH UHDFKLQJ WKH WRSRIGHVFHQW WKH UXQZD\ WKUHVKROG H[WHQG ODQGLQJ IODSV DQG
EHJLQ UHGXFLQJ VSHHG WR WKH ILQDO DSSURDFK VSHHG
$V DSSOLFDEOH VHWXS QDYDLGV IRU WKH LQVWUXPHQW
DSSURDFK DVVRFLDWHG ZLWK WKH ODQGLQJ UXQZD\ (VWLPDWH WKH JOLGH SDWK DQJOH WR WKH UXQZD\
IRU PRQLWRULQJ DQG LQ FDVH RI ORVV RI YLVXDO WKUHVKROG EDVHG RQ DYDLODEOH YLVXDO FXHV
UHIHUHQFHV HJ 9$6, RU QDYDLGV GDWD ,/6 JOLGH VORSH RU
DOWLWXGHGLVWDQFH IURP WRXFKGRZQ ]RQH EDVHG RQ D
%ULHI RU UHEULHI WKH NH\ SRLQWV RI WKH YLVXDO W\SLFDO IWQDXWLFDO PLOH JOLGH SDWK
DSSURDFK DQG UHEULHI DOVR WKH NH\ SRLQWV RI WKH
DVVRFLDWHG LQVWUXPHQW DSSURDFK
1RWH *6 GHYLDWLRQ DQG 9$6, LQIRUPDWLRQ DUH
UHOLDEOH RQO\ ZKHQ ZLWKLQ GHJUHH IURP

5HYLHZ DQG GLVFXVV WKH SXEOLVKHG PLVVHGDSSURDFK
WKH ILQDO DSSURDFK FRXUVH
SURFHGXUH LI GLIIHUHQW IURP WKH ,)5 PLVVHG
DSSURDFK SURFHGXUH
'R QRW H[FHHG GHJUHH EDQN DQJOH ZKHQ WXQLQJ
ILQDO
([WHQG VODWV DQG IO\ DW WKH FRUUHVSRQGLQJ
PDQHXYHULQJ VSHHG
$QWLFLSDWH WKH FURVVZLQG HIIHFW DV DSSOLFDEOH LQ
RUGHU WR FRPSOHWH WKH WXUQ EHLQJ FRUUHFWO\
%DURPHWULFDOWLPHWHU EXJ DQG UDGLRDOWLPHWHU '+
HVWDEOLVKHG RQ WKH H[WHQGHG UXQZD\ FHQWHUOLQH ZLWK
PD\ EH VHW DV SHU FRPSDQ\¶V 623V IRU HQKDQFHG
WKH UHTXLUHG GULIW FRUUHFWLRQ
WHUUDLQ DZDUHQHVV
)LQDO DSSURDFK
2XWERXQG OHJ RU 'RZQZLQG OHJ
$LP DW EHLQJ IXOO\ DOLJQHG LH ZLWK ZLQJV OHYHO DQG

,Q RUGHU WR EH OLQHGXS RQ WKH ILQDO DSSURDFK FRXUVH
VWDELOL]HG DW WKH ILQDO DSSURDFK VSHHG E\ IW
DQG VWDELOL]HG DW IW DERYH DLUILHOG HOHYDWLRQ
DERYH DLUILHOG HOHYDWLRQ RU SHU FRPSDQ\ 623V
LQWHUFHSW WKH ILQDO DSSURDFK FRXUVH DW W\SLFDOO\ QP
IURP WKH UXQZD\ WKUHVKROG WLPH WKH RXWERXQG OHJ RU
0RQLWRU JURXQG VSHHG YDULDWLRQV IRU ZLQGVKHDU
GRZQZLQG OHJ DFFRUGLQJO\ DV D IXQFWLRQ RI WKH
DZDUHQHVV DQG SHUIRUP DOWLWXGH FDOORXWV DQG
SUHYDLOLQJ DLUVSHHG DQG ZLQG FRPSRQHQW
H[FHVVLYHSDUDPHWHUGHYLDWLRQ FDOORXWV DV IRU DQ
LQVWUXPHQW DSSURDFK
0DLQWDLQ W\SLFDOO\ IW DERYH DLUILHOG HOHYDWLRQ
RU WKH FKDUWHG DOWLWXGH XQWLO VWDUWLQJ WKH ILQDO
0DLQWDLQ YLVXDO VFDQQLQJ WRZDUG WKH DLPLQJ SRLQW
GHVFHQW VHJPHQW RU WXUQLQJ EDVH OHJ
W\SLFDOO\ IW IURP WKH UXQZD\ WKUHVKROG WR
DYRLG DQ\ WHQGHQF\ WR LQDGYHUWHQWO\ GHVFHQG ³GXFN
&RQILJXUH WKH DLUFUDIW DV SHU WKH 623V RU FLUFXLW
XQGHU´ EHORZ WKH ILQDO DSSURDFK JOLGH SDWK XVH WKH
SDWWHUQ W\SLFDOO\ DLPLQJ DW WXUQLQJ EDVH OHJ ZLWK
*6 GHYLDWLRQ LQGH[ RU WKH 9$6, 3$3, DV DYDLODEOH
DSSURDFK IODSV ODQGLQJ JHDU GRZQ DQG JURXQG
IRU FURVVFKHFN
VSRLOHUV DUPHG
'R QRW H[FHHG GHJUHH EDQN DQJOH ZKHQ WXUQLQJ

LQWR EDVH OHJ

3DJH
)DFWRUV $IIHFWLQJ 9LVXDO $SSURDFKHV 7\SLFDO 'HYLDWLRQV LQ 9LVXDO $SSURDFKHV

7KH IROORZLQJ IDFWRUV RIWHQ DUH LQYROYHG LQ UXVKHG 7KH IROORZLQJ REVHUYDWLRQV DUH W\SLFDO RI UXVKHG RU
DQG XQVWDELOL]HG YLVXDO DSSURDFKHV XQVWDELOL]HG YLVXDO DSSURDFKHV
x 3UHVVXUH RI IOLJKW VFKHGXOH DGRSWLQJ VKRUWFXWV

x 6WHHS DSSURDFK LH KLJK DQG IDVW ZLWK
LQ DQ DWWHPSW WR PDNH XS IRU GHOD\
H[FHVVLYH UDWH RI GHVFHQW
x &UHZLQGXFHG RU $7&LQGXFHG FLUFXPVWDQFHV x 6KDOORZ DSSURDFK LH EHORZ GHVLUHG JOLGH

UHVXOWLQJ LQ LQVXIILFLHQW WLPH RU GLVWDQFH WR SODQ SDWK
DQG H[HFXWH WKH DSSURDFK
x *3:6 DFWLYDWLRQ
x ([FHVVLYH DOWLWXGH RU DLUVSHHG LH LQDGHTXDWH 0RGH 6,1. 5$7(

HQHUJ\ PDQDJHPHQW HDUO\ LQ WKH DSSURDFK
0RGH $ 7(55$,1 OHVV WKDQ IXOO IODSV
x 7RR VKRUW GRZQZLQG OHJ FLUFXLW SDWWHUQ WRR 0RGH % 7(55$,1 IXOO IODSV
VKRUW RXWERXQG OHJ WHDUGURS SDWWHUQ RU WRR
FORVH LQWHUFHSWLRQ GLUHFW EDVH OHJ LQWHUFHSWLRQ x )LQDODSSURDFKFRXUVH LQWHUFHSWLRQ WRR FORVH WR
WKH UXQZD\ WKUHVKROG EHFDXVH RI DQ LQVXIILFLHQW
x /DFN RI DZDUHQHVV RI WDLO ZLQG DQGRU FURVVZLQG RXWERXQG WHDUGURS OHJ RU GRZQZLQG OHJ
FRPSRQHQW RU IDLOXUH WR DFFRXQW IRU SUHYDLOLQJ
x /DWHUDOO\ XQVWDEOH ILQDO DSSURDFK GXH WR ODFN RI
ZLQG FRPSRQHQW
FURVVZLQG DZDUHQHVV DQG FRUUHFWLRQ
x ,QFRUUHFW DQWLFLSDWLRQ RI DLUFUDIW GHFHOHUDWLRQ x ([FHVVLYH EDQN DQJOH DQG PDQHXYHULQJ WR

FKDUDFWHULVWLFV LQ OHYHO IOLJKW RU RQ D GHJUHH FDSWXUH WKH H[WHQGHG UXQZD\ FHQWHUOLQH
JOLGH SDWK RYHUVKRRW RU WR SHUIRUP D VLGHVWHS PDQHXYHU
x 8QVWDELOL]HG DSSURDFK ZLWK ODWH RU QR JRDURXQG

x )DLOXUH WR UHFRJQL]H GHYLDWLRQV RU WR UHPHPEHU
GHFLVLRQ DQG
WKH H[FHVVLYHSDUDPHWHUGHYLDWLRQ FULWHULD
x ,QDGYHUWHQWO\ GHVFHQGLQJ EHORZ ³GXFNLQJ
x %HOLHI WKDW WKH DLUFUDIW ZLOO EH VWDELOL]HG DW WKH XQGHU´ WKH GHJUHH JOLGH SDWK
VWDELOL]DWLRQ KHLJKW RU VKRUWO\ WKHUHDIWHU
x 31) H[FHVVLYH FRQILGHQFH LQ WKH 3) LQ 6XPPDU\ RI .H\ 3RLQWV

DFKLHYLQJ D WLPHO\ VWDELOL]DWLRQ RU UHOXFWDQFH WR
FKDOOHQJH WKH 3) 7KH IROORZLQJ NH\ SRLQWV VKRXOG EH GLVFXVVHG GXULQJ
IOLJKW FUHZV WUDLQLQJ IRU HQKDQFLQJ VDIH YLVXDO
x 3) DQG 31) H[FHVVLYH UHOLDQFH RQ HDFK RWKHU WR DSSURDFKHV
FDOO H[FHVVLYH GHYLDWLRQV RU WR FDOO IRU
D JRDURXQG x $VVHVVLQJ WKH FRPSDQ\ RU SHUVRQDO H[SRVXUH
LH RSHUDWLQJ HQYLURQPHQW
x 9LVXDO LOOXVLRQV HJ EODFN KROH UXQZD\ VORSH
RIIDLUSRUW OLJKW SDWWHUQV VXFK DV EULJKWO\ OLJKWHG x 'HYHORSLQJ FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG
SDUNLQJ ORWV RU VWUHHWV SHUVRQDO OLQHVRIGHIHQVH
x ,QDGYHUWHQW XQFRQVFLRXV PRGLILFDWLRQ RI WKH x :HLJKLQJ WKH WLPH VDYHG DJDLQVW WKH SRVVLEOH
DLUFUDIW WUDMHFWRU\ WR PDLQWDLQ D FRQVWDQW ULVN
SHUFHSWLRQ RI YLVXDO UHIHUHQFHV DQG
x $ZDUHQHVV RI DQG DFFRXQWLQJ IRU DOO ZHDWKHU
x /RVV RI JURXQG DLUSRUW RU UXQZD\ YLVXDO IDFWRUV
UHIHUHQFHV ZLWK ERWK 3) DQG 31) ORRNLQJ
RXWVLGH WR UHDFTXLUH YLVXDO UHIHUHQFHV x $ZDUHQHVV RI VXUURXQGLQJ WHUUDLQ DQG REVWDFOHV

3DJH
x $ZDUHQHVV RI DLUSRUW HQYLURQPHQW DLUSRUW DQG 5HJXODWRU\ 5HIHUHQFHV

UXQZD\ KD]DUGV LH EODFN KROH HIIHFW
x ,&$2 ± $QQH[ ± &KDSWHU ± 9LVXDO
x 8VH RI D SXEOLVKHG YLVXDO DSSURDFK FKDUW RU $SSURDFK &KDUWV
YLVXDO FLUFXLW SDWWHUQ
x )$$ ± $& $ ± 3LORW¶V 6SDWLDO 'LVRULHQWDWLRQ
x 7XQLQJ DQG PRQLWRULQJ DOO DYDLODEOH QDYDLGV
x )$$ ± $,0 ± 3LORW&RQWUROOHU *ORVVDU\
x 2SWLPXP XVH RI DXWRPDWLRQ ZLWK WLPHO\
UHYHUVLRQ WR KDQG IO\LQJ
/RVV RI YLVXDO UHIHUHQFHV
x $GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ
x -$5236 ± 6XESDUW ( ± D ± 9LVXDO
3) VKRXOG IO\ DQG ORRN RXWVLGH LH EHLQJ DSSURDFK
KHDG XS ZKLOH
31) VKRXOG PRQLWRU LQVWUXPHQWV LH EHLQJ

KHDG GRZQ
x 0DLQWDLQLQJ YLVXDO FRQWDFW ZLWK UXQZD\ DQG RWKHU

WUDIILF DW DOO WLPHV DQG
x 3HUIRUPLQJ DOWLWXGH FDOORXWV DQG H[FHVVLYH

SDUDPHWHUVGHYLDWLRQ FDOORXWV DV IRU LQVWUXPHQW
DSSURDFKHV DQG
x &RPSO\LQJ ZLWK DVVRFLDWHG JRDURXQG SROLF\

LQIRUPDWLRQ RQ RSHUDWLRQDO DVSHFWV DQG WHFKQLTXHV
LQYROYHG LQ YLVXDO DSSURDFKHV
x 6WDQGDUG &DOOV
x 1RUPDO &KHFNOLVWV
x $SSURDFK DQG *RDURXQG %ULHILQJV
x $OWLPHWHU 6HWWLQJ ² 8VH RI 5DGLR

$OWLPHWHU

$SSURDFK
x 7HUUDLQ &),7 $ZDUHQHVV

3DJH
&KDSWHU
/DQGLQJ7HFKQLTXHV
3UHYHQWLQJ5XQZD\([FXUVLRQVDQG2YHUUXQV
5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV PD\ RFFXU

IROORZLQJ DOO W\SHV RI DSSURDFKHV
,QWURGXFWLRQ
5XQZD\ H[FXUVLRQV LQFOXGH WKH IROORZLQJ W\SHV RI x 9LVXDO

HYHQWV
x 9HHULQJ RII WKH UXQZD\ GXULQJ WKH ODQGLQJ UROO x 1RQSUHFLVLRQ RU
RU x 3UHFLVLRQ DSSURDFKHV

x 9HHULQJ RII WKH UXQZD\ RU WD[LZD\ ZKHQ YDFDWLQJ
WKH UXQZD\ 5XQZD\ H[FXUVLRQV DQG RYHUUXQV DUH REVHUYHG
5XQZD\ RYHUUXQV GHILQH HYHQWV ZKHUH WKH DLUFUDIW UHJDUGOHVV RI GD\WLPH RU QLJKWWLPH FRQGLWLRQV
UROORXW H[WHQGV EH\RQG WKH HQG RI WKH ODQGLQJ 5XQZD\ H[FXUVLRQV DQG RYHUUXQV RIWHQ DUH
UXQZD\ DVVRFLDWHG ZLWK RQH RU VHYHUDO RI WKH IROORZLQJ
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI WKH ZHDWKHU FRQGLWLRQV
IDFWRUV LQYROYHG LQ UXQZD\ H[FXUVLRQV DQG UXQZD\ x /RZ YLVLELOLW\ RU IRJ
RYHUUXQV DQG VXJJHVWV WKH GHYHORSPHQW RI
FRUUHVSRQGLQJ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI x +HDY\ UDLQ LH UXQZD\ FRQWDPLQDWHG ZLWK
GHIHQVH VWDQGLQJ ZDWHU RU UXQZD\ VOLSSHU\ZKHQZHW
x &ROG ZHDWKHU RSHUDWLRQ LH UXQZD\
6WDWLVWLFDO 'DWD FRQWDPLQDWHG ZLWK VOXVK RU LFH DQG
5XQZD\ H[FXUVLRQV DQG RYHUUXQV DFFRXQW IRU x 6WHDG\ RU JXVWLQJ FURVVZLQG RU WDLO ZLQG
W\SLFDOO\ RI DOO DSSURDFKDQGODQGLQJ FRPSRQHQW
DFFLGHQWV
5XQZD\ H[FXUVLRQ RU RYHUUXQ HYHQWV DOVR KDYH
EHHQ H[SHULHQFHG ZLWK JRRG ZHDWKHU DQG GU\
(YHQW RI (YHQWV UXQZD\ FRQGLWLRQV
5XQZD\ H[FXUVLRQ )DFWRUV ,QYROYHG LQ 5XQZD\ ([FXUVLRQV
5XQZD\ RYHUUXQ 5XQZD\ H[FXUVLRQV RIWHQ DUH WKH UHVXOW RI WKH
IROORZLQJ RSHUDWLRQDO IDFWRUV DQG FLUFXPVWDQFHV
7DEOH
5XQZD\ ([FXUVLRQV DQG 2YHUUXQV :HDWKHU IDFWRUV
x 5XQZD\ FRQGLWLRQ ZHW RU FRQWDPLQDWHG E\

/DQGLQJ RYHUUXQV UHSUHVHQW RI DOO REVHUYHG VWDQGLQJ ZDWHU VOXVK VQRZ RU LFH
UXQZD\ RYHUUXQ HYHQWV LH LQFOXGLQJ UXQZD\ :LQG VKHDU
RYHUUXQV IROORZLQJ D UHMHFWHG WDNHRII x

3DJH
x &URVVZLQG FRPSRQHQW 3HUIRUPDQFH IDFWRUV
x ,QFRUUHFW DVVHVVPHQW RI ODQGLQJ GLVWDQFH

x ,QDFFXUDWH LQIRUPDWLRQ RQ ZLQG DQGRU UXQZD\
IROORZLQJ DQ LQIOLJKW PDOIXQFWLRQ RU DQ 0(/
FRQGLWLRQV DQG
FRQGLWLRQ DIIHFWLQJ
x 5HYHUVHWKUXVW HIIHFW LQ FURVVZLQG DQG RQ DLUFUDIW FRQILJXUDWLRQ HJ VODWV IODSV RU UROO
FRQWDPLQDWHG UXQZD\ VSRLOHUV
OLIW GXPSLQJ HJ JURXQG VSRLOHUVRU
&UHZ WHFKQLTXH RU GHFLVLRQ IDFWRUV EUDNLQJ FDSDELOLW\ HJ DQWLVNLG
x ,QFRUUHFW FURVVZLQG ODQGLQJ WHFKQLTXHV

HJ GULIWLQJ GXULQJ WKH GHFUDE DQG DOLJQ SKDVH
x ,QFRUUHFW DVVHVVPHQW RI ODQGLQJ GLVWDQFH IRU
SUHYDLOLQJ ZLQG DQG UXQZD\ FRQGLWLRQV DQG
DEVHQFH RI GHFUDE ZKHQ ODQGLQJ LQ KLJK
FURVVZLQG FRQGLWLRQV x ,QRSHUDWLYH EUDNHV QRW DFFRXQWHG IRU SHU
0(/''* SURYLVLRQ
x ,QDSSURSULDWH GLIIHUHQWLDO EUDNLQJ E\ FUHZ
x 8VH RI QRVHZKHHOVWHHULQJ WLOOHU DW KLJK VSHHG &UHZ WHFKQLTXH RU GHFLVLRQ IDFWRUV

DQG
x 8QVWDEOH DSSURDFK SDWK VWHHS DQG IDVW
x 9DFDWLQJ WKH UXQZD\ DW DQ H[FHVVLYH VSHHG /DQGLQJ IDVW XS WR 9 $33 NW DW UXQZD\

WKUHVKROG DQGRU
6\VWHPV IDFWRUV ([FHVVLYH KHLJKW RYHU WKUHVKROG XS WR IW

UHVXOWLQJ LQ D ORQJ ODQGLQJ
x $V\PPHWULF WKUXVW LH IRUZDUG WKUXVW RQ RQH
VLGH UHYHUVH WKUXVW RQ RSSRVLWH VLGH RU
x $EVHQFH RI JRDURXQG GHFLVLRQ ZKHQ
ZDUUDQWHG
x 8QFRPPDQGHG GLIIHUHQWLDO EUDNLQJ
x &DSWDLQ 31)¶V GHFLVLRQ WR ODQG IROORZLQJ

LQWHQWLRQ RU LQLWLDWLRQ RI JRDURXQG E\ ILUVW RIILFHU
)DFWRUV ,QYROYHG LQ 5XQZD\ 2YHUUXQV 3)
7KH IROORZLQJ RSHUDWLRQDO IDFWRUV DQG FLUFXPVWDQFHV x /RQJ IODUH DOORZLQJ WKH DLUFUDIW WR IORDW WR EOHHG
DUH REVHUYHG DV UHFXUULQJ SDWWHUQV DORQH RU LQ DQ H[FHVVVSHHG XVHV WKUHH WLPHV PRUH UXQZD\
FRPELQDWLRQ LQ UXQZD\RYHUUXQ HYHQWV WKDQ GHFHOHUDWLQJ RQ WKH JURXQG
x )DLOXUH WR DUP JURXQG VSRLOHUV XVXDOO\

:HDWKHU IDFWRUV
DVVRFLDWHG ZLWK WKUXVW UHYHUVHUV EHLQJ
x 8QDQWLFLSDWHG UXQZD\ FRQGLWLRQ LH ZRUVH WKDQ LQRSHUDWLYH
DQWLFLSDWHG
x 3RZHURQ WRXFKGRZQ LH SUHYHQWLQJ DXWRPDWLF
H[WHQVLRQ RI JURXQG VSRLOHUV
x ,QDFFXUDWH VXUIDFH ZLQG LQIRUPDWLRQ DQG
x )DLOXUH WR GHWHFW WKH QRQGHSOR\PHQW RI JURXQG

x 8QDQWLFLSDWHG ZLQG VKHDU RU WDLO ZLQG VSRLOHUV HJ DEVHQFH RI UHODWHG VWDQGDUG FDOO
FRPSRQHQW
x )RUZDUG WKURWWOHWKUXVW OHYHUV PRYHPHQW
UHVXOWLQJ LQ WKH SUHPDWXUH UHWUDFWLRQ RI JURXQG
VSRLOHUV DQG LQ WKH ORVV RI DXWREUDNH

3DJH
x %RXQFLQJ DQG LQFRUUHFW ERXQFH UHFRYHU\ 6WDQGDUG RSHUDWLQJ SURFHGXUHV 623V
x /DWH EUDNLQJ RU ODWH WDNHRYHU IURP DXWREUDNH x 'HILQH FULWHULD DQG FDOORXWV IRU VWDELOL]HG
V\VWHP ZKHQ UHTXLUHG DQG DSSURDFK DQG GHILQH PLQLPXP VWDELOL]DWLRQ
KHLJKWV DSSURDFK JDWHV GHSHQGLQJ RQ ZHDWKHU
x 5HGXFHG EUDNLQJ HIILFLHQF\ ZKLOH DVVXULQJ FRQGLWLRQV LH ,0& YHUVXV 90&
GLUHFWLRQDO FRQWURO LQ FURVVZLQG FRQGLWLRQV

x 'HILQH WDVN VKDULQJ DQG VWDQGDUG FDOOV IRU ILQDO
DSSURDFK DQG UROORXW SKDVHV DQG
6\VWHPV IDFWRUV
x /RVV RI SHGDO EUDNLQJ RU x ,QFRUSRUDWH D FUHZ FDOORXW IRU UXQZD\ OHQJWK
UHPDLQLQJ HJ [\] IWP UXQZD\ UHPDLQLQJ RU
x $QWLVNLG PDOIXQFWLRQ UHVXOWLQJ LQ DTXDSODQLQJ DV [\Z IWP WR JR LQ ORZ YLVLELOLW\ FRQGLWLRQV
HYLGHQFHG E\ H[WHQVLYH VSRWV RQ DOO DIIHFWHG EDVHG RQ
WLUHV
UXQZD\OLJKWLQJ FRORU FKDQJH
UXQZD\GLVWDQFHUHPDLQLQJ PDUNHUV DV
3UHYHQWLRQ 6WUDWHJLHV DQG /LQHVRI'HIHQVH DYDLODEOH DQGRU
RWKHU DYDLODEOH YLVXDO FXHV VXFK DV UXQZD\

7KH IROORZLQJ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
RU WD[LZD\ LQWHUVHFWLRQV
GHIHQVH VKRXOG EH LPSOHPHQWHG WR DGGUHVV WKH
IDFWRUV LQYROYHG LQ UXQZD\ H[FXUVLRQV DQG RYHUUXQV
3HUIRUPDQFH GDWD
3ROLFLHV
x 3XEOLVK ODQGLQJ GLVWDQFHV IRU YDULRXV
x 'HILQH SROLF\ DQG SURFHGXUHV WR SURPRWH WKH W\SH RI EUDNLQJ LH SHGDO EUDNLQJ RU
UHDGLQHVV DQG FRPPLWPHQW WR JRDURXQG LI WKH DXWREUDNH DQG
FRQGLWLRQV IRU D VDIH ODQGLQJ DUH QRW DFKLHYHG
UXQZD\ FRQGLWLRQV DQG
LH GLVFRXUDJLQJ DQ\ DWWHPSW WR UHVFXH ZKDW LV

OLNHO\ WR EH DQ KD]DUGRXV ODQGLQJ
x 3URYLGH IOLJKW FUHZV ZLWK ODQGLQJ GLVWDQFH
FRUUHFWLRQV IRU UXQZD\V IHDWXULQJ
x 'HILQH SROLF\ WR HQVXUH WKDW LQRSHUDWLYH EUDNHV GRZQKLOO VORSH DQGRU

³FROG EUDNHV´ DUH UHSRUWHG LQ WKH DLUFUDIW
ORJERRN DQG DFFRXQWHG IRU LQ DFFRUGDQFH ZLWK KLJK HOHYDWLRQ
WKH 0(/
&UHZ WHFKQLTXHV
x 'HILQH SROLF\ DQG SURFHGXUHV IRU UHMHFWHG
ODQGLQJ LH ERXQFH UHFRYHU\ x 3XEOLVK SURFHGXUHV DQG SURYLGH WUDLQLQJ IRU
FURVVZLQG ODQGLQJ WHFKQLTXH LH FUDEEHG
x 'HILQH SROLF\ DQG SURFHGXUHV SURKLELWLQJ ODQGLQJ DSSURDFK ZLWK ZLQJVOHYHO
EH\RQG WKH SXEOLVKHG WRXFKGRZQ SRLQW ]RQH
DQG x 3XEOLVK SURFHGXUHV DQG SURYLGH WUDLQLQJ IRU
GHFUDE WHFKQLTXH GHSHQGLQJ RQ FURVVZLQG
x 'HILQH SROLF\ HQFRXUDJLQJ D ILUP WRXFKGRZQ FRPSRQHQW DQG UXQZD\ FRQGLWLRQ LH FRPSOHWH
ZKHQ RSHUDWLQJ RQ D UXQZD\ FRQWDPLQDWHG ZLWK GHFUDE SDUWLDO GHFUDE RU DEVHQFH RI GHFUDE
VWDQGLQJ ZDWHU RU VOXVK
x 3XEOLVK SURFHGXUHV IRU RSWLPXP XVH RI

DXWREUDNH V\VWHP DQG WKUXVW UHYHUVHUV RQ
FRQWDPLQDWHG UXQZD\

3DJH
x 3URYLGH UHFRPPHQGDWLRQV IRU WKH XVH RI UXGGHU 6XPPDU\ RI NH\ SRLQWV

GLIIHUHQWLDO EUDNLQJ QRVHZKHHO VWHHULQJ IRU
GLUHFWLRQDO FRQWURO GHSHQGLQJ RQ WKH VSHHG DQG 5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV FDQ EH
UXQZD\ FRQGLWLRQ DQG FDWHJRUL]HG LQWR VL[ IDPLOLHV RI HYHQWV GHSHQGLQJ RQ
WKHLU SULPDU\ FDXVDO IDFWRU
x 3XEOLVK VSHFLILF UHFRPPHQGDWLRQV IRU DLUFUDIW
ODWHUDO DQG GLUHFWLRQDO FRQWURO DIWHU FURVVZLQG x (YHQWV UHVXOWLQJ IURP DQ XQVWDELOL]HG DSSURDFK
ODQGLQJ
x (YHQW UHVXOWLQJ IURP DQ LQFRUUHFW IODUH

WHFKQLTXH
&UHZ DZDUHQHVV
x (YHQWV UHVXOWLQJ IURP XQDQWLFLSDWHG RU PRUH

x (QVXUH IOLJKW FUHZV DZDUHQHVV DQG VHYHUHWKDQH[SHFWHG DGYHUVH ZHDWKHU
XQGHUVWDQGLQJ RI DOO IDFWRUV DIIHFWLQJ ODQGLQJ FRQGLWLRQV
GLVWDQFHV
x (YHQWV UHVXOWLQJ IURP UHGXFHG RU ORVV RI OLIW

x (QVXUH IOLJKW FUHZV DZDUHQHVV DQG GXPSLQJ RU EUDNLQJ HIILFLHQF\
XQGHUVWDQGLQJ RI FRQGLWLRQV FRQGXFLYH WR
K\GURSODQLQJ
x (YHQWV UHVXOWLQJ IURP DQ DEQRUPDO
FRQILJXUDWLRQ LQFOXGLQJ
x (QVXUH IOLJKW FUHZV DZDUHQHVV DQG
XQGHUVWDQGLQJ RI FURVVZLQG DQG ZKHHO FRUQHULQJ DLUFUDIW GLVSDWFK XQGHU PLQLPXP HTXLSPHQW
LVVXHV OLVW >0(/@ GLVSDWFK GHYLDWLRQ JXLGH >''*@

RU
x (QVXUH IOLJKW FUHZV DZDUHQHVV RI ZLQGVKHDU LQIOLJKW PDOIXQFWLRQ DQG

KD]DUGV DQG GHYHORS FRUUHVSRQGLQJ SURFHGXUHV
DQG WHFKQLTXHV ZLWK VSHFLDO HPSKDVLV RQ
x (YHQWV UHVXOWLQJ IURP LQFRUUHFW FUHZ DFWLRQ DQG
PRQLWRULQJ JURXQG VSHHG YDULDWLRQV GXULQJ
FRRUGLQDWLRQ XQGHU DGYHUVH WHFKQLFDO RU
DSSURDFK
ZHDWKHU FRQGLWLRQV
x 'HYHORS IOLJKW FUHZV DZDUHQHVV RI UHODWLRQVKLSV

DPRQJ EUDNLQJ DFWLRQ UXQZD\ IULFWLRQ &RUUHVSRQGLQJ FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG
FRHIILFLHQW UXQZD\FRQGLWLRQ LQGH[ DQG LQGLYLGXDO OLQHVRIGHIHQVH FDQ EH GHYHORSHG IRU
PD[LPXP UHFRPPHQGHG FURVVZLQG FRPSRQHQW HDFK IDPLO\ WKURXJK
GHSHQGLQJ RQ UXQZD\ FRQGLWLRQ DQG

x 6WULFW DGKHUHQFH WR 623V
x (QVXUH IOLJKW FUHZV DZDUHQHVV RI UXQZD\

x (QKDQFHG DZDUHQHVV RI HQYLURQPHQWDO IDFWRUV
OLJKWLQJ FKDQJHV ZKHQ DSSURDFKLQJ WKH UXQZD\
HQG HJ
x (QKDQFHG XQGHUVWDQGLQJ RI DLUFUDIW
&HQWHUOLQH OLJKWLQJ VWDQGDUG FHQWHUOLQH SHUIRUPDQFH DQG KDQGOLQJ WHFKQLTXHV DQG
OLJKWLQJ RQO\
x ZKLWH OLJKWV FKDQJLQJ WR DOWHUQDWLQJ UHG

x (QKDQFHG DOHUWQHVV IRU
DQG ZKLWH OLJKWV EHWZHHQ IW DQG IOLJKWSDUDPHWHUV PRQLWRULQJ

IW IURP UXQZD\ HQG DQG WR UHG
OLJKWV IRU WKH ODVW IW DQG H[FHVVLYHGHYLDWLRQ FDOORXWV DQG
5XQZD\ HGJHV OLJKWLQJ +,5/ RQO\

PXWXDO FURVVFKHFN DQG EDFNXS
x :KLWH OLJKWV FKDQJLQJ WR \HOORZ OLJKWV RQ

WKH ODVW IW RI WKH UXQZD\

3DJH

7KH IROORZLQJ VSHFLILF %ULHILQJ 1RWHV SURYLGH
H[SDQGHG LQIRUPDWLRQ WR VXSSOHPHQW WKH DERYH
RYHUYLHZ
x 6WDQGDUG &DOOV
x %RXQFLQJ 5HFRYHU\ ² 5HMHFWHG

/DQGLQJ

'LVWDQFHV
x 2SWLPXP 8VH RI %UDNLQJ 'HYLFHV
x 2SHUDWLRQ RQ :HW RU &RQWDPLQDWHG

5XQZD\
x $ERXW :LQG ,QIRUPDWLRQ
x &URVVZLQG /DQGLQJ

3DJH
7KH)LQDO$SSURDFK6SHHG
,QWURGXFWLRQ 7KH ILQDO DSSURDFK VSHHG FRPSXWDWLRQ LV WKH UHVXOW

RI D WDFWLFDO FKRLFH SHUIRUPHG E\ WKH IOLJKW FUHZ WR
$VVXULQJ D VDIH ODQGLQJ UHTXLUHV DFKLHYLQJ DVVXUH WKH VDIHVW DSSURDFK DQG ODQGLQJ IRU WKH
D EDODQFHG GLVWULEXWLRQ RI VDIHW\ PDUJLQV EHWZHHQ SUHYDLOLQJ FRQGLWLRQV LQ WHUPV RI
x 7KH FRPSXWHG ILQDO DSSURDFK VSHHG DQG x *URVV ZHLJKW
x :LQG FRQGLWLRQV
x 7KH UHVXOWLQJ ODQGLQJ GLVWDQFH
x )ODSV FRQILJXUDWLRQ ZKHQ VHYHUDO IODSV

7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI FRQILJXUDWLRQ DUH FHUWLILHG IRU ODQGLQJ
x 7KH GHILQLWLRQ RI WKH ILQDO DSSURDFK VSHHG x $LUFUDIW FRQILJXUDWLRQ VSHHG FRUUHFWLRQV IRU
DEQRUPDO FRQILJXUDWLRQV
x )DFWRUV DIIHFWLQJ WKH FRPSXWDWLRQ RI WKLV WDUJHW
VSHHG DQG x ,FLQJ FRQGLWLRQV
x 5XOH DSSOLHG IRU WKH FRPELQDWLRQ RI VSHHG

x 8VH RI $7+5 LQ 63' PRGH RU
FRUUHFWLRQV
x $XWRODQG
6WDWLVWLFDO 'DWD 7KH ILQDO DSSURDFK VSHHG 9 $33 FDQ EH FRPSXWHG

EDVHG RQ WKH UHIHUHQFH WKUHVKROG VSHHG 9 5() RU RQ
7KH DVVHVVPHQW RI WKH ILQDO DSSURDFK VSHHG UDUHO\ WKH PLQLPXP VHOHFWDEOH VSHHG 9 /6 DV DYDLODEOH
LV D IDFWRU LQ DSSURDFKDQGODQGLQJ LQFLGHQWV DQG
DFFLGHQWV HYHQ LQ UXQZD\ RYHUUXQ HYHQWV EXW 9 5() LV GHILQHG DV
DSSURDFKLQJ DW D VSHHG VLJQLILFDQWO\ IDVWHU WKDQ WKH

FRPSXWHG WDUJHW VSHHG RIWHQ LV FLWHG DV D FDXVDO 9 5() ; [ VWDOO VSHHG ZLWK IXOO ODQGLQJ IODSV
IDFWRU
9 /6 LV GHILQHG DV
'HILQLQJ WKH )LQDO $SSURDFK 6SHHG 9 /6

; [ VWDOO VSHHG LQ DFWXDO FRQILJXUDWLRQ
7KH ILQDO DSSURDFK VSHHG LV WKH VSHHG WR EH

DQG PLQLPXP VWDOO VSHHG 9 6 0,1
PDLQWDLQHG GRZQ WR IW RYHU WKH UXQZD\ WKUHVKROG
RQ FRQYHQWLRQDO DLUFUDIW PRGHOV RU
DQG VWDOO VSHHG XQGHU J 9 6 J

RQ IO\E\ZLUH DLUFUDIW PRGHOV

3DJH
7KH ILQDO DSSURDFK VSHHG 9 $33 FDQ EH GHWHUPLQHG )DFWRUV $IIHFWLQJ WKH )LQDO $SSURDFK 6SHHG
EDVHG RQ 9 5() RU 9 /6 DV IROORZV
7KH IROORZLQJ VSHHG FRUUHFWLRQV VKRXOG DUH QRW EH

9 $33 9 5() &RUUHFWLRQV DGGHG RQO\ WKH KLJKHVW VSHHG FRUUHFWLRQ VKRXOG EH
FRQVLGHUHG XQOHVV RWKHUZLVH VWDWHG LQ WKH
7KH VSHHG FRUUHFWLRQV RQ 9 5() DFFRXQW IRU DSSOLFDEOH )&20 DQG 45+
x $LUFUDIW FRQILJXUDWLRQ &21) &255 x :LQG FRUUHFWLRQ
ODQGLQJ ZLWK OHVV WKDQ IXOO IODSV RU

x 6SHHG FRUUHFWLRQ IRU LFH DFFUHWLRQ
x 6SHHG FRUUHFWLRQ IRU WKH XVH RI WKH $7+5 LQ

DEQRUPDO FRQILJXUDWLRQ 63' PRGH RU IRU DXWRODQG
x 2SHUDWLRQDO IDFWRUV
x 6SHHG FRUUHFWLRQ IRU IRUHFDVW GRZQEXUVW ZLQG
VKHDU FRQGLWLRQV
:,1' &255 IRU ZLQG FRPSRQHQW JXVW\

7KH )&20 DQG 45+ SURYLGH WKH UXOHV DSSOLFDEOH
FURVVZLQG RU VXVSHFWHG ZLQG VKHDU DQG
IRU WKH DLUFUDIW W\SH DQG PRGHO
NW IRU XVH RI $7+5 LQ 63' PRGH RU LI

VLJQLILFDQW LFH DFFUHWLRQ LV VXVSHFWHG *URVV ZHLJKW
RU
%HFDXVH 9 5() LV UHIHUHQFHG WR WKH VWDOO VSHHG
9 6 0,1 RU 9 6 J 9 5() GHSHQGV RQ WKH JURVV
9 $33 9 /6 ,QFUHPHQWV &RUUHFWLRQV ZHLJKW
7KH VSHHG LQFUHPHQWV RQ 9 /6 DFFRXQW IRU

7KH )&20 DQG 45+ SURYLGH 9 5() WDEOHV IRU
x &RQILJXUDWLRQ FRQGLWLRQV WKDW DUH QRW LQFOXGHG LQ QRUPDO ODQGLQJV DQG RYHUZHLJKW ODQGLQJV
WKH FRPSXWDWLRQ RI WKH 9 /6

:LQG FRQGLWLRQV
7KH VSHHG FRUUHFWLRQV RQ 9 /6 DFFRXQW IRU

7KH ZLQG FRUUHFWLRQ RQ WKH ILQDO DSSURDFK VSHHG
x 2SHUDWLRQDO IDFWRUV RQO\ SURYLGHV DQ DGGLWLRQDO PDUJLQ UHODWLYH WR WKH VWDOO
VSHHG WR FRSH ZLWK VSHHG H[FXUVLRQV FDXVHG E\
:,1' &255 IRU ZLQG FRPSRQHQW JXVW\ WXUEXOHQFH DQG ZLQG JUDGLHQW
FURVVZLQG RU VXVSHFWHG ZLQG VKHDU DQG
$LUEXV ,QGXVWULH XVHV WKH IROORZLQJ ZLQG FRUUHFWLRQV
NW IRU XVH RI $7+5 LQ 63' PRGH RU :,1' &255
LI VLJQLILFDQW LFH DFFUHWLRQ LV VXVSHFWHG
x $$$ VHULHV
WKH VSHHG FRUUHFWLRQ IRU LFH DFFUHWLRQ LV RI WKH KHDGZLQG FRPSRQHQW H[FOXGLQJ
NW RU NW GHSHQGLQJ RQ DLUFUDIW WKH JXVW OLPLWHG WR NW
PRGHO
x $$
7KH UHVXOWLQJ ILQDO DSSURDFK VSHHG 9 $33 SURYLGHV RI WKH WRZHU DYHUDJH ZLQG RU WKH JXVW
WKH EHVW FRPSURPLVH EHWZHHQ KDQGOLQJ TXDOLWLHV LQFUHPHQW ZKLFKHYHU LV KLJKHU OLPLWHG WR
VWDOO PDUJLQ DQGRU PDQHXYHUDELOLW\ FRQWUROODELOLW\ NW RU
DQG ODQGLQJ GLVWDQFH
x $%% DQG $ ))&&

)RU FODULW\ DQG FRPPRQDOLW\ DPRQJ YDULRXV $LUEXV
PRGHOV WKH IROORZLQJ RYHUYLHZ DQG GLVFXVVLRQ $ JUDSKLFDO DVVHVVPHQW EDVHG RQ WKH WRZHU
UHIHUV RQO\ WR WKH FRPSXWDWLRQ RI 9 $33 EDVHG RQ ZLQG YHORFLW\ DQG ZLQG DQJOH OLPLWHG WR
9 5() NW

3DJH
1R ZLQG FRUUHFWLRQ LV DSSOLHG IRU WDLOZLQGV 8VH RI $7+5 LQ 63' PRGH
2Q VRPH DLUFUDIW PRGHOV WKH :,1' &255 FDQ EH :KHQ XVLQJ WKH $7+5 LQ 63' PRGH GXULQJ WKH
HQWHUHG RQ WKH DSSURSULDWH )06 SDJH ILQDO DSSURDFK D NW VSHHG FRUUHFWLRQ RQ 9 5()
VKRXOG EH DGGHG WR DFFRXQW IRU WKH DFFXUDF\ RI WKH
DXWRWKURWWOHDXWRWKUXVW V\VWHP LQ PDLQWDLQLQJ WKH
)ODSV FRQILJXUDWLRQ
ILQDO DSSURDFK WDUJHW VSHHG
:KHQ VHYHUDO IODS FRQILJXUDWLRQV DUH FHUWLILHG IRU

7KLV VSHHG FRUUHFWLRQ HQVXUHV WKDW D VSHHG HTXDO WR
ODQGLQJ WKH UHIHUHQFH WKUHVKROG VSHHG IRU WKH
RU JUHDWHU WKDQ 9 5() 9 /6 LV PDLQWDLQHG DW DOO
VHOHFWHG FRQILJXUDWLRQ LV GHILQHG DV
WLPHV GRZQ WR IW RYHU WKH UXQZD\ WKUHVKROG
9 5() IXOO IODSV '9 5()

&$7 ,, &$7 ,,, DXWRODQG
,Q FDOPZLQG FRQGLWLRQV LQ OLJKWDQGYDULDEOH ZLQG

FRQGLWLRQV DQG LQ OLJKW WXUEXOHQFH FRQGLWLRQV )RU &$7 ,, DSSURDFKHV XVLQJ WKH $7+5 LQ 63'
9 5() NW LV D W\SLFDO WDUJHW WKUHVKROG VSHHG PRGH &$7 ,,, DSSURDFKHV DQG DXWRODQG
DSSURDFKHV UHJDUGOHVV RI ZHDWKHU FRQGLWLRQV
WKH NW VSHHG FRUUHFWLRQ RQ 9 5() LV UHTXLUHG E\
$EQRUPDO FRQILJXUDWLRQ
FHUWLILFDWLRQ
6\VWHP PDOIXQFWLRQV VXFK DV WKH ORVV RI RQH

K\GUDXOLF V\VWHP RU WKH MDPPLQJ RI HLWKHU VODWV RU
,FH DFFUHWLRQ
IODSV UHTXLUH D VSHHG FRUUHFWLRQ WR UHVWRUH
x 7KH VWDOO PDUJLQ HJ ORVV RU MDPPLQJ RI VODWV :KHQ VHYHUH LFLQJ FRQGLWLRQV DUH HQFRXQWHUHG
DQGRU IODSV RU D NW RU NW VSHHG FRUUHFWLRQ PXVW EH FRQVLGHUHG

WR DFFRXQW IRU WKH DFFUHWLRQ RI LFH RQ WKH XQKHDWHG
x 7KH FRQWUROODELOLW\ PDQHXYHUDELOLW\ HJ ORVV RI VXUIDFHV RI WKH DLUFUDIW
SDUW RI UROO VSRLOHUV 9 0&/ OLPLWDWLRQ LI
DSSOLFDEOH
'RZQEXUVW :LQGVKHDU
7KH VSHHG FRUUHFWLRQV SURYLGHG LQ WKH )&20 DQG

'RZQEXUVW ZLQGVKHDU FRQGLWLRQV PD\ EH
45+ WDNH LQWR DFFRXQW DOO WKH FRQVHTXHQWLDO HIIHFWV
DQWLFLSDWHG EDVHG RQ
DVVRFLDWHG ZLWK WKH SULPDU\ PDOIXQFWLRQ
LH QR FRPELQDWLRQ RI VSHHG FRUUHFWLRQV LV x 3LORW¶V UHSRUWV IURP SUHFHGLQJ DLUFUDIW
UHTXLUHG XQOHVV RWKHUZLVH VWDWHG DQG H[SODLQHG
x $OHUWV LVVXHG E\ WKH DLUSRUW ORZ OHYHO ZLQGVKHDU
7KH IROORZLQJ UXOHV DUH XVHG WR FRPELQH DOHUW V\VWHP //:$6 RU
WKH GLIIHUHQW W\SHV RI VSHHG FRUUHFWLRQV

x 'DWD IURP D WHUPLQDO 'RSSOHU ZHDWKHU UDGDU
x :KHQ WZR PDOIXQFWLRQV DIIHFW WKH VWDOO PDUJLQ 7':5
ERWK VSHHG FRUUHFWLRQV DUH DGGHG

:KHQ GRZQEXUVW ZLQGVKHDU FRQGLWLRQV DUH
x :KHQ WZR PDOIXQFWLRQV DIIHFW WKH FRQWUROODELOLW\ DQWLFLSDWHG WKH ODQGLQJ VKRXOG EH GHOD\HG RU WKH
PDQHXYHUDELOLW\ RQO\ WKH KLJKHU VSHHG DLUFUDIW VKRXOG GLYHUW WR WKH GHVWLQDWLRQ DOWHUQDWH
FRUUHFWLRQ LV FRQVLGHUHG DLUSRUW
x :KHQ RQH PDOIXQFWLRQ DIIHFWV WKH VWDOO PDUJLQ

,I GHOD\HG ODQGLQJ RU GLYHUVLRQ LV SRVVLEOH D VSHHG
DQG WKH RWKHU RQH DIIHFWV WKH FRQWUROODELOLW\
FRUUHFWLRQ XVXDOO\ XS WR NW WR NW EDVHG RQ WKH
PDQHXYHUDELOLW\ WKHQ RQO\ WKH KLJKHU VSHHG
DQWLFLSDWHG ZLQGVKHDU LV UHFRPPHQGHG
FRUUHFWLRQ LV FRQVLGHUHG
/DQGLQJ ZLWK OHVV WKDQ IXOO IODSV LV UHFRPPHQGHG

7KHVH UXOHV DUH SURYLGHG KHUHLQ IRU HQKDQFHG
WR PD[LPL]H WKH FOLPE JUDGLHQW FDSDELOLW\ WKH ILQDO
XQGHUVWDQGLQJ SXUSRVHV RQO\
DSSURDFK VSHHG VKRXOG EH DGMXVWHG DFFRUGLQJO\

3DJH
0LFUREXUVWV RU RWKHU W\SHV RI ZLQG VKHDU XVXDOO\ DUH 7KH &21) &255 DQG :,1' &255 DUH FRPELQHG
FKDUDFWHUL]HG E\ D VLJQLILFDQW LQFUHDVH RI WKH KHDG DFFRUGLQJ WR WKH IROORZLQJ UXOHV RU DV GLUHFWHG E\
ZLQG FRPSRQHQW SUHFHGLQJ D VXGGHQ VKLIW WR D WDLO )&20 DQG 45+
ZLQG FRPSRQHQW
x ,I WKH &21) &255 LV HTXDO WR RU JUHDWHU WKDQ
:KHQ ZLQG VKHDU LV DQWLFLSDWHG WKH JURXQG VSHHG NW QR :,1' &255 LV DSSOLHG
VKRXOG EH PRQLWRUHG FORVHO\ IRU HQKDQFHG ZLQG
VKHDU DZDUHQHVV x ,I WKH &21) &255 LV ORZHU WKDQ NW WKHQ WKH
&21) &255 :,1' &255 LV OLPLWHG WR
7R HQVXUH DQ DGHTXDWH HQHUJ\ PDUJLQ D PLQLPXP NW
JURXQG VSHHG VKRXOG EH PDLQWDLQHG DW DOO WLPHV
7KH NW VSHHG FRUUHFWLRQ IRU WKH XVH RI

DXWRWKURWWOHDXWRWKUXVW DQG WKH NW RU NW VSHHG
7KLV PLQLPXPJURXQGVSHHG WHFKQLTXH NQRZQ DV
FRUUHFWLRQ IRU LFH DFFUHWLRQ DV DSSOLFDEOH PD\ EH
*6 PLQL LV LPSOHPHQWHG DV IROORZV
GLVUHJDUGHG LI WKH RWKHU VSHHG FRUUHFWLRQV H[FHHG
x &RQYHQWLRQDO DLUFUDIW PRGHOV NW
%\ DGMXVWLQJ PDQXDOO\ WKH WKUXVW WR PDLQWDLQ

7KH DERYH VWUDWHJLHV DOORZ GLVWULEXWLQJ DQG
WKH *6 QRW EHORZ 9 $33 ± NW
EDODQFLQJ WKH VDIHW\ PDUJLQV EHWZHHQ WKH ODQGLQJ
VSHHG DQG WKH ODQGLQJ GLVWDQFH
x )O\E\ZLUH DLUFUDIW PRGHOV
%\ VHOHFWLQJ PDQDJHG VSHHG

1RWH
6SHHG FRQILJXUDWLRQ FRUUHFWLRQV IRU DXWRODQG DUH QRW
:KHQ DQG +RZ 7R &RPELQH 6SHHG GLVFXVVHG LQ WKLV %ULHILQJ 1RWH EHFDXVH LQ FDVH RI
,QFUHPHQWV DQG &RUUHFWLRQV " V\VWHP PDOIXQFWLRQ UHTXLULQJ D &21) &255
DXWRODQG XVXDOO\ LV QRW SHUPLWWHG
7KH GLIIHUHQW VSHHG FRUUHFWLRQV DUH DGGHG RU QRW LQ

RUGHU WR HTXDOO\ GLVWULEXWH WKH VDIHW\ PDUJLQV UHODWHG
WR WKH IROORZLQJ REMHFWLYHV 6XPPDU\ RI NH\ SRLQWV
x 6WDOO PDUJLQ 7KH GDWD DQG UXOHV SURYLGHG LQ WKH )&20 DQG 45+
DOORZ DFKLHYLQJ D EDODQFHG GLVWULEXWLRQ RI VDIHW\

x &RQWUROODELOLW\ PDQHXYHUDELOLW\ DQG PDUJLQV EHWZHHQ
x /DQGLQJ GLVWDQFH x 7KH FRPSXWHG ILQDO DSSURDFK VSHHG DQG
,Q FDVH RI V\VWHP PDOIXQFWLRQV UHVXOWLQJ LQ D x 7KH UHVXOWLQJ ODQGLQJ GLVWDQFH

FRQILJXUDWLRQ FRUUHFWLRQ &21) &255 RQ 9 5()
WKH ILQDO DSSURDFK VSHHG EHFRPHV HTXDO WR 7KH DSSOLFDEOH )&20 DQG 45+ SURYLGH VSHHG
LQFUHPHQWV VSHHG FRUUHFWLRQV DQG UXOHV IRU HDFK

9 5() &21) &255 :,1' &255 LQGLYLGXDO DLUFUDIW PRGHO
7KH :,1' &255 LV OLPLWHG WR NW
7KH &21) &255 LV GHWHUPLQHG E\ UHIHUULQJ WR

WKH )&20 RU 45+

3DJH

7KH IROORZLQJ UHODWHG %ULHILQJ 1RWHV VXSSOHPHQW WKH
DERYH GLVFXVVLRQ LQIRUPDWLRQ
x ² :LQG 6KHDU $ZDUHQHVV
x 3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG

2YHUUXQV

'LVWDQFHV
x )$$ $& ± &ULWHULD )RU $SSURYDO RI
&DWHJRU\ , DQG &DWHJRU\ ,, /DQGLQJ :HDWKHU
0LPLPD IRU )$5 2SHUDWRUV
x )$$ $& ' ± &ULWHULD )RU $SSURYDO RI
&DWHJRU\ ,,, :HDWKHU 0LPLPD IRU 7DNHRII
/DQGLQJ DQG 5ROORXW

3DJH
)DFWRUV$IIHFWLQJ/DQGLQJ'LVWDQFH
,QWURGXFWLRQ 5HTXLUHG /DQGLQJ 'LVWDQFH -$$ )$$
5XQZD\ RYHUUXQV DUH LQYROYHG LQ RI DSSURDFK

DQGODQGLQJ DFFLGHQWV 'U\ UXQZD\
8QGHUVWDQGLQJ WKH IDFWRUV DIIHFWLQJ ODQGLQJ GLVWDQFH

:HW UXQZD\
FDQ FRQWULEXWH WR UHGXFLQJ WKH QXPEHU RI UXQZD\

RYHUUXQ HYHQWV $FWXDO /DQGLQJ 5HJXODWRU\
'LVWDQFH GU\ )DFWRU

7KLV %ULHILQJ 1RWH LV VXSSOHPHQWHG E\ WKH %ULHILQJ ,I ZHW
IW DW WKUHVKROG
1RWHV ² 7KH )LQDO $SSURDFK DQG 6SHHG
2SWLPXP 8VH RI %UDNLQJ 'HYLFHV
'HILQLQJ WKH /DQGLQJ 'LVWDQFH

5HTXLUHG UXQZD\ OHQJWK GU\ $FWXDO ODQGLQJ GLVWDQFH GU\ [
5HTXLUHG UXQZD\ OHQJWK ZHW $FWXDO ODQGLQJ GLVWDQFH GU\ [
:KHQ UHIHUULQJ WR WKH ODQGLQJ GLVWDQFH

WZR GHILQLWLRQV PXVW EH FRQVLGHUHG
x 7KH DFWXDO ODQGLQJ GLVWDQFH DFKLHYHG WR ODQG
)LJXUH
DQG FRPH WR D FRPSOHWH VWRS RQ D GU\ UXQZD\
DIWHU FURVVLQJ WKH UXQZD\ WKUHVKROG DW IW
7KH DFWXDO ODQGLQJ GLVWDQFH LV XVHG DV UHIHUHQFH

5HTXLUHG /DQGLQJ 'LVWDQFH 8. &$$
IRU DQ\ LQIOLJKW DVVHVVPHQW RI WKH ODQGLQJ
GLVWDQFH
'U\ RU
x 7KH UHTXLUHG ODQGLQJ GLVWDQFH LV REWDLQHG E\ :HW UXQZD\
DSSO\LQJ D UHJXODWRU\ IDFWRU WR WKH DFWXDO ODQGLQJ

GLVWDQFH $FWXDO ODQGLQJ 5HJXODWRU\
'LVWDQFH GU\ )DFWRU

7KH UHTXLUHG ODQGLQJ GLVWDQFH LV XVHG IRU
GLVSDWFK SXUSRVHV LH IRU VHOHFWLQJ WKH IW DW WKUHVKROG
GHVWLQDWLRQ DOWHUQDWH DQG GLYHUVLRQ DLUSRUWV
$FWXDO ODQGLQJ GLVWDQFHV DUH GHPRQVWUDWHG GXULQJ

FHUWLILFDWLRQ IOLJKW WHVWV ZLWKRXW WKH XVH RI WKUXVW
UHYHUVHUV 5HTXLUHG UXQZD\ OHQJWK GU\ RU ZHW $FWXDO ODQGLQJ GLVWDQFH GU\ [
)LJXUH DQG )LJXUH LOOXVWUDWH WKH DFWXDO DQG

UHTXLUHG ODQGLQJ GLVWDQFHV DV GHILQHG E\
)LJXUH
WKH (XURSHDQ -$$ 86 )$$ DQG E\ WKH 8. &$$

3DJH
)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH 5XQZD\ SURILOH VORSH
7KH UXQZD\ SURILOH LH GRZQKLOO VORSH DIIHFWV WKH

ODQGLQJ GLVWDQFH ZLWKRXW DXWREUDNH
7KH DFWXDO ODQGLQJ GLVWDQFH LV DIIHFWHG E\ YDULRXV
RSHUDWLRQDO IDFWRUV WKXV UHGXFLQJ WKH UHJXODWRU\
:KHQ DXWREUDNH LV XVHG WKH VHOHFWHG GHFHOHUDWLRQ

PDUJLQV WKLV LQFOXGHV
x $LUILHOG HOHYDWLRQ RU
LH LQFUHDVHG JURXQG VSHHG
ORZ 41+ FRQGLWLRQ UDWH LV DFKLHYHG UHJDUGOHVV RI WKH UXQZD\ VORSH
)RU H[DPSOH D GRZQKLOO VORSH GRZQKLOO
x 5XQZD\ SURILOH LH GRZQKLOO VORSH
JUDGLHQW LQFUHDVHV WKH SXEOLVKHG ODQGLQJ GLVWDQFH
x 5XQZD\ FRQGLWLRQ LH QDWXUH DQG GHSWK RI E\ IDFWRU
FRQWDPLQDQW ZHW UXQZD\ RU UXQZD\
FRQWDPLQDWHG E\ VWDQGLQJ ZDWHU VOXVK VQRZ RU +RZHYHU WKLV HIIHFW QHHGV WR EH DFFRXQWHG IRU RQO\
LFH LI WKH UXQZD\ GRZQKLOO VORSH H[FHHGV
x :LQG FRQGLWLRQV HJ WDLOZLQG FRPSRQHQW
5XQZD\ FRQGLWLRQV
x 7\SH RI EUDNLQJ XVHG LH SHGDO EUDNLQJ RU
DXWREUDNH XVH RI WKUXVW UHYHUVHUV
5XQZD\ FRQWDPLQDWLRQ LQFUHDVHV WKH UROOLQJ GUDJ
x LH WKH GLVSODFHPHQW GUDJ DQG WKH DHURG\QDPLF
GUDJ LH WKH LPSLQJHPHQW GUDJ EXW DOVR
$QWLVNLG IDLOXUH
x ,QFUHPHQWDO DGGLWLRQ RI DOO VSHHG FRUUHFWLRQV RQ

WKH ILQDO DSSURDFK VSHHG
GHFUHDVHV WKH EUDNLQJ HIILFLHQF\
7KH IROORZLQJ ODQGLQJ GLVWDQFH IDFWRUV DUH W\SLFDO RQ
x 'HYLDWLRQ IURP WKH ILQDO DSSURDFK VSHHG
D FRQWDPLQDWHG UXQZD\
x /DQGLQJ WHFKQLTXHV LH KHLJKW DQG VSHHG DW
WKUHVKROG WKUXVW UHGXFWLRQ DQG IODUH WHFKQLTXH
x 'HYLDWLRQV IURP 623V HJ IDLOXUH WR DUP 5XQZD\ &RQGLWLRQ )DFWRUV

JURXQG VSRLOHUV
x 0(/ FRQGLWLRQV LH WKUXVW UHYHUVHUV EUDNH

:HW WR
6WDQGLQJ ZDWHU RU VOXVK WR
XQLW DQWLVNLG RU JURXQG VSRLOHUV LQRSHUDWLYH
DQG
x ,QIOLJKW V\VWHP PDOIXQFWLRQV UHVXOWLQJ

LQFUHDVHG ILQDO DSSURDFK VSHHG RU DIIHFWLQJ WKH
LQ DQ &RPSDFWHG VQRZ WR
OLIWGXPSLQJ RU EUDNLQJ FDSDELOLW\
,FH WR
7KHVH IDFWRUV DUH GLVFXVVHG KHUHDIWHU DQG
LOOXVWUDWHG LQ )LJXUH 7DEOH
/DQGLQJ 'LVWDQFH )DFWRUV &RQWDPLQDWHG 5XQZD\
$LUILHOG HOHYDWLRQ
$LUILHOG HOHYDWLRQ RU D FRUUHVSRQGLQJ ORZ 41+ YDOXH %ULHILQJ 1RWH /DQGLQJ RQ &RQWDPLQDWHG
UHVXOWV LQ D KLJKHU 7$6 DQG JURXQG VSHHG DQG WKXV 5XQZD\ SURYLGHV H[SDQGHG DQG LOOXVWUDWHG
LQ D JUHDWHU ODQGLQJ GLVWDQFH LQIRUPDWLRQ IRU RSHUDWLRQ RQ UXQZD\ FRQWDPLQDWHG
ZLWK VWDQGLQJ ZDWHU VOXVK VQRZ RU LFH
$W IW DLUILHOG HOHYDWLRQ RU DW VHD OHYHO ZLWK DQ

HTXLYDOHQW SUHVVXUH DOWLWXGH LH ZLWK D ORZ 41+ RI
K3D WKH ODQGLQJ GLVWDQFH LV LQFUHDVHG E\
WR IDFWRU WR

3DJH
:LQG FRQGLWLRQV $W JLYHQ JURVV ZHLJKW *: DQ\ LQFUHPHQW RI RU

GHYLDWLRQ IURP 9 $33 UHVXOWV LQ D FRUUHVSRQGLQJ
,Q DFFRUGDQFH ZLWK FHUWLILFDWLRQ UHTXLUHPHQWV DQG LQFUHDVH RI HQHUJ\ '( VXFK WKDW
RSHUDWLRQDO UHJXODWLRQV WKH SXEOLVKHG ODQGLQJ
GLVWDQFH IDFWRUV DFFRXQW IRU '( LQ [ ' 9$33 LQ
x RI WKH KHDG ZLQG FRPSRQHQW DQG
7KH ODQGLQJ GLVWDQFH /' EHLQJ D GLUHFW IXQFWLRQ RI
x RI WKH WDLO ZLQG FRPSRQHQW WKH HQHUJ\ ( WKH FRUUHVSRQGLQJ LQFUHDVH LQ ODQGLQJ
GLVWDQFH '/' FDQ EH H[SUHVVHG DOVR DV
1RWH
'/' LQ [ ' 9$33 LQ
,Q FDVH RI JXVWLQJ FURVVZLQG D WDLOZLQG FRPSRQHQW
PD\ H[LVW EXW LV QRW UHSRUWHG 7KLV FRQGLWLRQ PD\ EH
XQGHWHFWHG DQG WKHUHIRUH EH QRW DFFRXQWHG IRU
,Q SLORW¶V WHUPV
7\SH RI EUDNLQJ
x D LQFUHDVH LQ ILQDO DSSURDFK VSHHG
$FWXDO ODQGLQJ GLVWDQFHV DUH GHPRQVWUDWHG GXULQJ UHVXOWV LQ
FHUWLILFDWLRQ IOLJKW WHVWV XVLQJ WKH IROORZLQJ x D LQFUHDVH LQ ODQGLQJ GLVWDQFH
WHFKQLTXH
x )O\LQJ DQ RSWLPXP IOLJKW VHJPHQW IURP IW RYHU
WKH UXQZD\ WKUHVKROG GRZQ WR WKH IODUH SRLQW 1RWH
7KH DERYH UXOH DVVXPHV D QRUPDO IODUH DQG

x 3HUIRUPLQJ D ILUP WRXFKGRZQ DQG WRXFKGRZQ LH QRW DOORZLQJ WKH DLUFUDIW WR IORDW WR
EOHHG RII WKH H[FHVV VSHHG
x 8VLQJ IXOO SHGDO EUDNLQJ XSRQ PDLQ ODQGLQJ JHDU
WRXFKGRZQ
+HLJKW RYHU WKUHVKROG
7KH SXEOLVKHG DFWXDO ODQGLQJ GLVWDQFHV VHOGRP FDQ
EH DFKLHYHG LQ UHYHQXH VHUYLFH &URVVLQJ WKH UXQZD\ WKUHVKROG DW IW UHVXOWV LQ DQ
LQFUHDVH RI WKH ODQGLQJ GLVWDQFH RI W\SLFDOO\ IW
7KH ODQGLQJ GLVWDQFHV SXEOLVKHG IRU DXWRPDWLF RU P UHJDUGOHVV RI WKH UXQZD\ FRQGLWLRQ DQG
ODQGLQJ ZLWK XVH RI DXWREUDNH SURYLGH PRUH DLUFUDIW PRGHO
DFKLHYDEOH UHIHUHQFHV IRU OLQH RSHUDWLRQV

IW P
6SHHG 2YHU 5XQZD\ 7KUHVKROG
7KH DFWXDO ODQGLQJ GLVWDQFH /' LV D GLUHFW IW DW WKUHVKROG

IXQFWLRQ RI WKH NLQHWLF HQHUJ\ ( WR EH DEVRUEHG
)RU DQ DLUFUDIW FURVVLQJ WKH UXQZD\ WKUHVKROG DW D IW DW WKUHVKROG
JLYHQ JURVVZHLJKW *: DQG DW WKH ILQDO DSSURDFK
VSHHG 9 WKH NLQHWLF HQHUJ\ LV
$33
( ò *: 9 $33 )LJXUH

3DJH
)ODUH WHFKQLTXH 1RWH
3HUIRUPLQJ D ORQJ IODUH LH DOORZLQJ WKH DLUFUDIW WR 2Q $$ VHULHV LI JURXQG VSRLOHUV GR QRW
IORDW WR EOHHG RII DQ H[FHVVLYH VSHHG IXUWKHU GHSOR\ DXWRPDWLFDOO\ WKH 3) FDQ PDQXDOO\ H[WHQG
LQFUHDVHV WKH ODQGLQJ GLVWDQFH WKH JURXQG VSRLOHUV XVLQJ WKH VSHHG EUDNHV OHYHU
)RU H[DPSOH D LQFUHDVH H[FHVV RI WKH ILQDO 'HOD\LQJ WKH GHURWDWLRQ LH WKH QRVH ODQGLQJ JHDU
DSSURDFK VSHHG LQFUHDVHV WKH ODQGLQJ GLVWDQFH E\ WRXFKGRZQ PDLQWDLQV D KLJKHU OLIW RQ PDLQ ODQGLQJ
JHDUV IRU ORQJHU UHVXOWLQJ LQ OHVV ORDG RQ WKH PDLQ
ODQGLQJ JHDUV DQG KHQFH LQ OHVV EUDNLQJ HIILFLHQF\
x LI D QRUPDO IODUH DQG WRXFKGRZQ LV

SHUIRUPHG LH GHFHOHUDWLRQ RQ WKH JURXQG 7KLV DOVR GHOD\V WKH VSLQXS VLJQDO IURP WKH QRVH
RU ZKHHOV WKLV VLJQDO LV UHTXLUHG

RSHUDWLRQ RI WKH DQWLVNLG V\VWHP
IRU WKH RSWLPXP
x LI D ORQJ IODUH LV SHUIRUPHG

LH GHFHOHUDWLRQ ZKLOH DLUERUQH 0(/ FRQGLWLRQV
3HUIRUPLQJ D SRZHURQ WRXFKGRZQ LQ DQ DWWHPSW WR :KHQ RSHUDWLQJ XQGHU WKH SURYLVLRQ RI WKH 0(/
OHVVHQ DQ H[FHVVLYH UDWHRIGHVFHQW RU WR VPRRWK IRU DQ LWHP DIIHFWLQJ WKH ODQGLQJ VSHHG WKH OLIW
RXW WKH WRXFKGRZQ UHVXOWV LQ GXPSLQJ RU WKH EUDNLQJ FDSDELOLW\ WKH DSSOLFDEOH
ODQGLQJ VSHHG FRUUHFWLRQ DQG ODQGLQJ GLVWDQFH IDFWRU
x $ ORQJ IODUH DQG PXVW EH DFFRXQWHG IRU
x 7KH LQKLELWLRQ RI WKH DXWRPDWLF H[WHQVLRQ RI

JURXQGVSRLOHUV 6\VWHPV PDOIXQFWLRQV
7KLV LQFUHDVHV WKH ULVN RI ERXQFLQJ XSRQ WRXFKGRZQ

DQG RI D VXEVHTXHQW KDUG ODQGLQJ 6\VWHP PDOIXQFWLRQV VXFK DV DQ K\GUDXOLF V\VWHP
ORZ SUHVVXUH PD\ UHVXOW LQ PXOWLSOH HIIHFWV RQ WKH
ODQGLQJ VSHHG DQG ODQGLQJ GLVWDQFH VXFK DV
*URXQG VSRLOHU QRW DUPHG

x /DQGLQJ VSHHG FRUUHFWLRQ GXH WR VODWV RU IODSV
)DLOXUH WR DUP WKH JURXQG VSRLOHUV XVXDOO\ LQ LQRSHUDWLYH LH UHVWRULQJ WKH VWDOO PDUJLQ
FRQMXQFWLRQ ZLWK WKUXVW UHYHUVHUV EHLQJ LQRSHUDWLYH

LV IUHTXHQWO\ D FDXVDO IDFWRU LQ UXQZD\ RYHUUXQV x /DQGLQJ VSHHG FRUUHFWLRQ GXH WR ORVV RI UROO
VSRLOHUV LH UHVWRULQJ WKH PDQHXYHUDELOLW\
7KH JURXQG VSRLOHUV H[WHQG DXWRPDWLFDOO\ ZKHQ

UHYHUVH WKUXVW LV VHOHFWHG UHJDUGOHVV RI ZKHWKHU WKH x /DQGLQJ GLVWDQFH IDFWRU GXH WR ORVV RI JURXQG
JURXQG VSRLOHUV DUH DUPHG RU QRW WKLV GHVLJQ VSRLOHUV LH ORVV RI OLIW GXPSLQJ FDSDELOLW\ DQG
IHDWXUH PXVW QRW EH UHOLHG XSRQ IRU H[WHQVLRQ RI

JURXQG VSRLOHUV *URXQG VSRLOHUV PXVW EH DUPHG SHU x /DQGLQJ GLVWDQFH IDFWRU GXH WR ORVV RI QRUPDO
623V EUDNLQJ V\VWHP LH UHGXFHG EUDNLQJ FDSDELOLW\
)DLOXUH WR DUP WKH JURXQG VSRLOHUV UHVXOWV LQ D W\SLFDO

ODQGLQJ GLVWDQFH IDFWRU RI LI WKUXVW UHYHUVHUV 7KH )&20 DQG 45+ SURYLGH WKH DSSOLFDEOH ILQDO
DUH LQRSHUDWLYH DSSURDFK VSHHG FRUUHFWLRQV DQG ODQGLQJ GLVWDQFH

IDFWRUV IRU DOO PDOIXQFWLRQV LQFOXGLQJ WKHLU
7KH DXWRPDWLF H[WHQVLRQ RI JURXQG VSRLOHUV VKRXOG FRQVHTXHQWLDO HIIHFWV
EH PRQLWRUHG DQG DQQRXQFHG E\ FDOOLQJ *URXQG

6SRLOHUV RU 1R 6SRLOHUV

3DJH
&RPELQLQJ /DQGLQJ 'LVWDQFH )DFWRUV 6XPPDU\ RI NH\ SRLQWV

7KH ODQGLQJ GLVWDQFH IDFWRUV SURYLGHG LQ WKH )&20 :KHQ DVVHVVLQJ WKH ODQGLQJ GLVWDQFH WKH IROORZLQJ
DQG 45+ WDNH LQWR DFFRXQW DOO WKH FRQVHTXHQWLDO IDFWRUV VKRXOG EH DFFRXQWHG IRU DQG FRPELQHG DV
HIIHFWV DVVRFLDWHG ZLWK WKH SULPDU\ PDOIXQFWLRQ VSHFLILHG LQ WKH DSSOLFDEOH )&20 45+
1R FRPELQDWLRQ RI ODQGLQJ GLVWDQFH IDFWRUV LV x 'LVSDWFK FRQGLWLRQV DV DSSOLFDEOH GLVSDWFK

QHHGHG XQOHVV RWKHUZLVH VWDWHG DQG H[SODLQHG XQGHU PLQLPXP HTXLSPHQW OLVW >0(/@ GLVSDWFK
GHYLDWLRQ JXLGH >''*@
1HYHUWKHOHVV XQGHUVWDQGLQJ WKH UXOHV XVHG WR
FRPELQH ODQGLQJ GLVWDQFH IDFWRUV SURYLGHV DQ x ,QIOLJKW IDLOXUHV DV DSSOLFDEOH
HQKDQFHG XQGHUVWDQGLQJ RI WKH DFKLHYDEOH ODQGLQJ
GLVWDQFH
x :HDWKHU FRQGLWLRQV HJ LFLQJ FRQGLWLRQV
LFH DFFUHWLRQ
/DQGLQJ GLVWDQFH IDFWRUV UHVXOW IURP
x :LQG FRQGLWLRQV LH ZLQG FRPSRQHQW DQG JXVW

x $ ODQGLQJ VSHHG FRUUHFWLRQ HJ EHFDXVH RI
VXVSHFWHG ZLQG VKHDU
D IDLOXUH DIIHFWLQJ WKH VWDOO PDUJLQ RU
PDQHXYHUDELOLW\ FRQWUROODELOLW\ RU
x $LUILHOG HOHYDWLRQ
x $ UHGXFHG OLIWGXPSLQJ RU EUDNLQJ FDSDELOLW\

x 5XQZD\ VORSH LH LI GRZQ KLOO
HJ EHFDXVH RI D IDLOXUH DIIHFWLQJ JURXQG
VSRLOHUV DQWLVNLG RU EUDNHV
x 5XQZD\ FRQGLWLRQ LH QDWXUH DQG GHSWK RI
FRQWDPLQDQW DQG
%ULHILQJ 1RWH 7KH )LQDO $SSURDFK 6SHHG
SURYLGHV WKH UXOHV XVHG IRU WKH FRPELQDWLRQ RI
x 8VH RI EUDNLQJ GHYLFHV HJ WKUXVW UHYHUVHUV
ODQGLQJ VSHHG FRUUHFWLRQV
DXWREUDNH
7KH IROORZLQJ UXOHV DUH XVHG WR FRPELQH

WKH GLIIHUHQW W\SHV RI ODQGLQJ GLVWDQFH IDFWRUV
x ,I ODQGLQJ VSHHG FRUUHFWLRQV DUH DGGHG

DV GHVFULEHG LQ %ULHILQJ 1RWH
WKH FRUUHVSRQGLQJ ODQGLQJ GLVWDQFH IDFWRUV DUH
PXOWLSOLHG
x ,I RQO\ WKH KLJKHU VSHHG FRUUHFWLRQ LV UHWDLQHG

WKHQ RQO\ WKH KLJKHU ODQGLQJ GLVWDQFH IDFWRU LV
FRQVLGHUHG RU
x :KHQ RQH RU ERWK RI WKH WZR ODQGLQJ GLVWDQFH

IDFWRUV LV DUH UHODWHG WR OLIWGXPSLQJ RU EUDNLQJ
ERWK ODQGLQJGLVWDQFH IDFWRUV DUH PXOWLSOLHG

3DJH
/DQGLQJ 'LVWDQFH 6XPPDU\

)LJXUH LOOXVWUDWHV WKH ODQGLQJ GLVWDQFH IDFWRU IRU
GLIIHUHQW UXQZD\ FRQGLWLRQV RU RSHUDWLRQDO IDFWRUV
5HTXLUHG /DQGLQJ 'LVWDQFH ZHW UXQZD\

5HIHUHQFH
QR UHYHUVH
IW HOHYDWLRQ
NW WDLO ZLQG
9 $SSURDFK NW
IW DW WKUHVKROG
/RQJ IODUH
1R JURXQG VSRLOHUV
:HW UXQZD\
&RPSDFWHG VQRZ
:DWHU DQG VOXVK
,F\ UXQZD\

/DQGLQJ 'LVWDQFH )DFWRU

3DJH

LQIRUPDWLRQ RQ EUDNLQJ LVVXHV RQ GU\ ZHW RU
FRQWDPLQDWHG UXQZD\
x 6WDQGDUG &DOOV
x %RXQFH 5HFRYHU\ ² 5HMHFWHG /DQGLQJ
x /DQGLQJ RQ &RQWDPLQDWHG 5XQZD\
'RF

'DWD
x )$5 6XESDUW , ± $LUSODQH 3HUIRUPDQFH

2SHUDWLQJ /LPLWDWLRQV
)$5 ± $SSOLFDELOLW\
)$5 ± $LUSODQHV 7XUELQH HQJLQH

SRZHUHG /DQGLQJ OLPLWDWLRQV 'HVWLQDWLRQ
DLUSRUWV

SRZHUHG /DQGLQJ OLPLWDWLRQV $OWHUQDWH
DLUSRUWV
x )$$ ± $& $ DQG % ± :DWHU 6OXVK DQG

6QRZ RQ WKH 5XQZD\
x -$5236 ± /DQGLQJ ± 'U\ 5XQZD\V
x -$5236 ± /DQGLQJ ± :HW DQG

&RQWDPLQDWHG 5XQZD\V
x 8. &$$ ± $,& ± /DQGLQJ 3HUIRUPDQFH RI

/DUJH 7UDQVSRUW $HURSODQHV
x 8. &$$ ± $,& ± 5LVNV DQG IDFWRUV

$VVRFLDWHG ZLWK 2SHUDWLRQV RQ 5XQZD\V
$IIHFWHG E\ 6QRZ 6OXVK RU :DWHU

3DJH
2SWLPXP8VHRI%UDNLQJ'HYLFHV
,QWURGXFWLRQ %UDNLQJ 'HYLFHV 2YHUYLHZ

7R HQVXUH DQ RSWLPXP XVH RI EUDNLQJ GHYLFHV 7KH IROORZLQJ EUDNLQJ GHYLFHV DUH XVHG WR
WKH IROORZLQJ DVSHFWV PXVW EH XQGHUVWRRG GHFHOHUDWH WKH DLUFUDIW DQG EULQJ LW WR D FRPSOHWH
VWRS
x 'HVLJQ DQG RSHUDWLRQ RI HDFK EUDNLQJ GHYLFH
LH JURXQG VSRLOHUV EUDNHV DQG WKUXVW x *URXQG VSRLOHUV
UHYHUVHUV
x :KHHO EUDNHV LQFOXGLQJ DQWLVNLG DQG DXWREUDNH
x 'LVWULEXWLRQ RI VWRSSLQJ IRUFHV GXULQJ ODQGLQJ V\VWHPV DQG
UROO
x 7KUXVW UHYHUVHU V\VWHP
x 7\SH RI EUDNLQJ UHTXLUHG WR DFKLHYH D GHVLUHG
VWRSSLQJ GLVWDQFH
x )DFWRUV DIIHFWLQJ WKH RSWLPXP XVH RI EUDNLQJ
*URXQG VSRLOHUV
GHYLFHV DQG *URXQG VSRLOHUV GHSOR\ DXWRPDWLFDOO\ XSRQ PDLQ

x $SSOLFDEOH RSHUDWLRQDO JXLGHOLQHV
ODQGLQJ JHDU WRXFKGRZQ LI DUPHG RU XSRQ VHOHFWLRQ
RI WKH WKUXVW UHYHUVHUV
6WDWLVWLFDO 'DWD *URXQG VSRLOHUV SURYLGH WZR GLVWLQFW DHURG\QDPLF
HIIHFWV DV LOOXVWUDWHG E\ )LJXUH
5XQZD\ H[FXUVLRQV DQG RYHUUXQV DFFRXQW IRU
RI DOO DSSURDFKDQGODQGLQJ VHULRXV LQFLGHQWV DQG x ,QFUHDVHG DHURG\QDPLF GUDJ ZKLFK FRQWULEXWHV
DFFLGHQWV WR DLUFUDIW GHFHOHUDWLRQ
6ORZHG RU GHOD\HG EUDNLQJ DFWLRQ ZDV D FDXVDO x /LIW GXPSLQJ ZKLFK LQFUHDVHV WKH ORDG RQ WKH
IDFWRU LQ RI WKHVH HYHQWV ZKHHOV DQG LQFUHDVHV WKH ZKHHOEUDNHV
HIILFLHQF\
/DQGLQJ RYHUUXQV UHSUHVHQW RI DOO REVHUYHG
RYHUUXQ HYHQWV LH LQFOXGLQJ UXQZD\ RYHUUXQV
IROORZLQJ D UHMHFWHG WDNHRII
7KH XVH RI EUDNLQJ GHYLFHV LV RQO\ RQH DPRQJ
VHYHUDO FDXVDO IDFWRUV UHVXOWLQJ LQ D UXQZD\
H[FXUVLRQ RU RYHUUXQ

3DJH
1HJOLJLEOH :HLJKW :HLJKW :HLJKW

RQ 0DLQ :KHHOV RQ 0DLQ :KHHOV RQ 0DLQ :KHHOV
'UDJ
,QFUHDVH IURP
*URXQG 6SRLOHUV
7RXFKGRZQ 1RVH :KHHO 'RZQ *URXQG 6SRLOHUV ([WHQGHG
9 $33 9 /6
)LJXUH
0D[LPL]LQJ :HLJKWRQ:KHHOV DQG $HURG\QDPLF 'UDJ
:KHHO EUDNHV
%UDNLQJ DFWLRQ UHVXOWV IURP WKH IULFWLRQ IRUFH

EHWZHHQ WKH WLUHV DQG WKH UXQZD\ VXUIDFH $QWLVNLG DFWLYDWLRQ
7LUH %UDNLQJ )RUFH

7KLV IULFWLRQ IRUFH GHSHQGV RQ VHYHUDO SDUDPHWHUV
x $LUFUDIW VSHHG

x :KHHO VSHHG LH IUHH UROOLQJ VNLGGLQJ RU

ORFNHG ZKHHO

)RUFH


FRQWDPLQDQW
x 7LUH FRQGLWLRQ DQG SUHVVXUH LH IULFWLRQ

VXUIDFH

x 7KH ORDG DSSOLHG RQ WKH ZKHHO LH WKH IULFWLRQ

)UHH UROOLQJ ZKHHO
6OLS 5DWLR /RFNHG ZKHHO
IRUFH GHSHQGV RQ WKH ORDG DSSOLHG RQ WKH ZKHHO

DQG RQ WKH UXQZD\ EUDNLQJ FRHIILFLHQW
x 7KH QXPEHU RI RSHUDWLYH EUDNHV 0(/ VWDWXV
)LJXUH
DV DSSOLFDEOH 7LUH %UDNLQJ )RUFH YHUVXV 6OLS 5DWLR
$QWLVNLG V\VWHPV DUH GHVLJQHG WR PDLQWDLQ WKH :LWK DQWLVNLG RSHUDWLYH IXOO SHGDO EUDNLQJ UHVXOWV LQ
ZKHHO VNLGGLQJ IDFWRU DOVR FDOOHG WKH VOLS UDWLR D GHFHOHUDWLRQ UDWH RI NQRWVSHUVHFRQG WR
FORVH WR WKH SRLQW SURYLGLQJ WKH PD[LPXP IULFWLRQ NQRWVSHUVHFRQG RQ D GU\ UXQZD\
IRUFH DSSUR[LPDWHO\ RQ D VFDOH JRLQJ IURP
IUHH UROOLQJ WR ORFNHG ZKHHO DV
LOOXVWUDWHG E\
)LJXUH

3DJH
$XWREUDNH 6\VWHP
$XWREUDNH V\VWHP LV GHVLJQHG WR SURYLGH D VHOHFWHG

GHFHOHUDWLRQ UDWH IRU HQKDQFHG SDVVHQJHU FRPIRUW
W\SLFDOO\ EHWZHHQ NQRWVSHUVHFRQG DQG
NQRWVSHUVHFRQG GHSHQGLQJ RQ WKH VHOHFWHG
PRGH
:KHQ D ORZ GHFHOHUDWLRQ UDWH LH /2: PRGH

WKH EUDNH SUHVVXUH LV DSSOLHG DIWHU D VSHFLILF WLPH
5XQZD\ FRQGLWLRQV
GHOD\ WR JLYH SULRULW\ WR WKH WKUXVWUHYHUVHUV HIIHFW
KLJK VSHHG )LJXUH
5XQZD\ FRQWDPLQDWLRQ LQFUHDVHV
7KUXVW UHYHUVHUV x ,PSLQJHPHQW GUDJ LH WKH GUDJ UHVXOWLQJ IURP

WKH VSUD\ RI FRQWDPLQDQW VWULNLQJ WKH ODQGLQJ
7KUXVW UHYHUVHUV SURYLGH D GHFHOHUDWLRQ IRUFH WKDW JHDU DQG DLUIUDPH DQG
LV LQGHSHQGHQW IURP WKH UXQZD\ FRQGLWLRQ
x 5ROOLQJ GUDJ LH WKH GLVSODFHPHQW GUDJ
7KUXVW UHYHUVH HIILFLHQF\ LV KLJKHU DW KLJK VSHHG
DV LOOXVWUDWHG E\ )LJXUH WKUXVW UHYHUVHUV
5XQZD\ FRQWDPLQDWLRQ DOVR DIIHFWV WKH EUDNLQJ
WKHUHIRUH VKRXOG EH VHOHFWHG DV HDUO\ DV SRVVLEOH
HIILFLHQF\
DIWHU WRXFKGRZQ LQ DFFRUGDQFH ZLWK DSSOLFDEOH
623V
7KH IROORZLQJ ODQGLQJ GLVWDQFH IDFWRUV DUH W\SLFDO RQ
ZHW RU FRQWDPLQDWHG UXQZD\
7KUXVW UHYHUVHUV VKRXOG EH UHWXUQHG WR UHYHUVH LGOH
DW ORZ VSHHG WR SUHYHQW HQJLQH VWDOO DQGRU IRUHLJQ
REMHW GDPDJH FDXVHG E\ H[KDXVW JDV UHLQJHVWLRQ
DQG VWRZHG DW WD[L VSHHG
5XQZD\ &RQGLWLRQ )DFWRUV
1HYHUWKHOHVV PD[LPXP UHYHUVH WKUXVW FDQ EH
PDLQWDLQHG GRZQ WR D FRPSOHWH VWRS LQ DQ :HW WR
HPHUJHQF\
6WDQGLQJ ZDWHU RU VOXVK WR
&RPSDFWHG VQRZ WR
,FH WR
5HYHUVHG WKUXVW W W W W 7DEOH

/DQGLQJ 'LVWDQFH )DFWRUV
:HW RU &RQWDPLQDWHG 5XQZD\

3DJH
8QGHUVWDQGLQJ D 7\SLFDO /DQGLQJ 5ROO 7KH UHVXOWLQJ WRWDO VWRSSLQJ IRUFH UHG FXUYH LV WKH
FRPELQHG HIIHFW RI
)LJXUH LOOXVWUDWHV D W\SLFDO ODQGLQJ UROO DQG VKRZV

x $HURG\QDPLF GUDJ JUHHQ FXUYH
WKH FRQWULEXWLRQ RI WKH GLIIHUHQW GHFHOHUDWLRQ IRUFHV
WR WKH WRWDO VWRSSLQJ IRUFH DV D IXQFWLRQ RI x 5HYHUVH WKUXVW EOXH FXUYH DQG
GHFHOHUDWLQJ DLUVSHHG LH IURP WRXFKGRZQ VSHHG
x 5ROOLQJ GUDJ SXUSOH FXUYH
WR WD[L VSHHG
'XULQJ WKH LQLWLDO ODQGLQJ UROO WKH WRWDO VWRSSLQJ IRUFH

7KH JURXQG VSRLOHUV DUH DUPHG DQG WKH DXWREUDNH
DOUHDG\ H[FHHGV WKH DXWREUDNH GHPDQG
V\VWHP LV VHOHFWHG ZLWK WKH /2: PRGH LH IRU WLPH
GHOD\HG EUDNH DSSOLFDWLRQ
$XWREUDNH DFWLYDWLRQ LV WKXV LQKLELWHG
7KH DXWREUDNH GHPDQG LQ /2: PRGH W\SLFDOO\ D x DV ORQJ DV WKH WRWDO VWRSSLQJ IRUFH H[FHHGV WKH
NQRWVSHUVHFRQG FRQVWDQW GHFHOHUDWLRQUDWH LV DXWREUDNH GHPDQG RU
HTXLYDOHQW DW JLYHQ JURVV ZHLJKW WR D FRQVWDQW
VWRSSLQJ IRUFH SLQN GRWWHG OLQH x XQWLO WKH DXWREUDNH WLPH GHOD\ KDV HODSVHG
$W WRXFKGRZQ WKH JURXQG VSRLOHUV DXWRPDWLFDOO\ $V DLUVSHHG GHFUHDVHV WKH WRWDO VWRSSLQJ IRUFH
H[WHQG DQG WKH WKUXVW UHYHUVHUV DUH VHOHFWHG ZLWK GHFUHDVHV EHFDXVH RI D FRUUHVSRQGLQJ GHFUHDVH LQ
WKH PD[LPXP UHYHUVH WKUXVW

x DHURG\QDPLF GUDJ DQG
x UHYHUVH WKUXVW LH GHFUHDVLQJ UHYHUVH

HIILFLHQF\
7\SLFDO 'HFHOHUDWLQJ )RUFHV GXULQJ /DQGLQJ 5ROO :KHQ WKH WRWDO VWRSSLQJ IRUFH EHFRPHV
ORZHU WKDQ WKH DXWREUDNH GHPDQG RU ZKHQ
WKH DXWREUDNH WLPH GHOD\ KDV HODSVHG
6WRSSLQJ )RUFH WKH ZKHHO EUDNHV EHJLQ FRQWULEXWLQJ WR WKH
$XWREUDNH /2: 0RGH
WRWDO GHFHOHUDWLRQ DQG VWRSSLQJ IRUFH
7RWDO 6WRSSLQJ )RUFH
7\SLFDOO\ DW NW ,$6 RU ZKHQ ,$6

$XWREUDNH 'HPDQG IOXFWXDWLRQV RFFXU ZKLFKHYHU FRPH ILUVW WKH
WKUXVWUHYHUVHU OHYHUV DUH UHWXUQHG WR WKH
$HURG\QDPLF 'UDJ UHYHUVH LGOH SRVLWLRQ WKHQ WR WKH VWRZ
%UDNLQJ DQG SRVLWLRQ ZKHQ UHDFKLQJ WD[L VSHHG
5ROOLQJ 'UDJ
0D[LPXP
5HYHUVH
7KUXVW $V D UHVXOW WKH ZKHHOEUDNHV¶ FRQWULEXWLRQ
5HYHUVH ,GOH SXUSOH FXUYH LQFUHDVHV LQ RUGHU WR PDLQWDLQ
)RUZDUG ,GOH WKH GHVLUHG GHFHOHUDWLRQ UDWH DXWREUDNH

GHPDQG XQWLO WKH SLORW WDNHV RYHU ZLWK SHGDO
$LUVSHHG NW EUDNLQJ
)LJXUH 7KLV JHQHULF VHTXHQFH RI HYHQWV LV

DSSOLFDEOH WR DQ\ DLUFUDIW HTXLSSHG ZLWK
6WRSSLQJ )RUFHV 'LVWULEXWLRQ JURXQG

UHYHUVHUV
VSRLOHUV DXWREUDNH DQG WKUXVW
7\SLFDO

3DJH
+RZ GR *URXQG 6SRLOHUV 7KUXVW 5HYHUVHUV )LJXUH SURYLGHV WKH IROORZLQJ LQIRUPDWLRQ
DQG %UDNHV &RQWULEXWH WR 6WRS WKH $LUFUDIW"
x )RU D JLYHQ EUDNLQJ PRGH LH SHGDO EUDNLQJ RU
DXWREUDNH PRGH
)LJXUH LOOXVWUDWHV WKH UHVSHFWLYH FRQWULEXWLRQV RI
WKH GLIIHUHQW EUDNLQJ GHYLFHV WR WKH WRWDO VWRSSLQJ $FKLHYHG VWRSSLQJ GLVWDQFH ODQGLQJ UROO
HQHUJ\ DV D IXQFWLRQ RI WKH DFKLHYHG RU GHVLUHG
VWRSSLQJ GLVWDQFH x )RU D GHVLUHG RU UHTXLUHG VWRSSLQJ GLVWDQFH
5HTXLUHG W\SH RI EUDNLQJ HJ SHGDO

EUDNLQJ RU DXWREUDNH PRGH
0D[ /DQGLQJ :HLJKW 6HD /HYHO ,6$ 'U\ UXQZD\
RI 7RWDO 6WRSSLQJ (QHUJ\

0D[LPXP SHGDO EUDNLQJ 1R %UDNLQJ
W\SLFDOO\ WR NWV

$XWREUDNH 0('
W\SLFDOO\ NWV

$XWREUDNH /2:
W\SLFDOO\ NWV
$HURG\QDPLF 'UDJ
0D[LPXP 5HYHUVH 7KUXVW

%UDNLQJ DQG 5ROOLQJ 'UDJ

6WRSSLQJ 'LVWDQFH P
)LJXUH
6WRSSLQJ (QHUJ\ 'LVWULEXWLRQ YHUVXV 6WRSSLQJ 'LVWDQFH

7\SLFDO

3DJH
)DFWRUV $IIHFWLQJ 2SWLPXP %UDNLQJ 2SHUDWLRQDO *XLGHOLQHV DQG .H\ 3RLQWV

7KH IROORZLQJ IDFWRUV RIWHQ DUH LQYROYHG LQ UXQZD\ 6WULFW DGKHUHQFH WR WKH IROORZLQJ RSHUDWLRQDO
H[FXUVLRQV LH DLUFUDIW YHHULQJ RII WKH UXQZD\ RU VWDQGDUGV DQG JXLGHOLQHV HQVXUHV RSWLPXP EUDNLQJ
WD[LZD\ RU LQ UXQZD\ RYHUUXQV GXULQJ WKH ODQGLQJ UROO
x )DLOXUH WR DUP JURXQG VSRLOHUV ZLWK WKUXVW x $UP JURXQG VSRLOHUV

UHYHUVHUV GHDFWLYDWHG HJ UHOLDQFH RQ WKUXVW
UHYHUVHU VLJQDO IRU JURXQG VSRLOHUV H[WHQVLRQ x $UP DXWREUDNH ZLWK WKH PRVW DSSURSULDWH PRGH
IRU SUHYDLOLQJ FRQGLWLRQV VKRUW UXQZD\ UXQZD\
x )DLOXUH WR XVH DQ\ EUDNLQJ GHYLFHV LH XVH RI ZLWK GRZQKLOO VORSH ORZ YLVLELOLW\ FRQWDPLQDWHG
WKH LQDSSURSULDWH QRVH KLJK ³DHURG\QDPLF UXQZD\
EUDNLQJ´ WHFKQLTXH
x 6HOHFW WKUXVW UHYHUVHUV DV VRRQ DV SRVVLEOH ZLWK
x $V\PPHWULF WKUXVW LH RQH HQJLQH EHLQJ DERYH PD[LPXP UHYHUVH WKUXVW WKLV LQFUHDVHV VDIHW\
LGOH OHYHO LQ IRUZDUG WKUXVW RU RQH HQJLQH IDLOLQJ RQ GU\ DQG ZHW UXQZD\ DQG LV PDQGDWRU\ RQ
WR JR LQWR UHYHUVH WKUXVW UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU VOXVK
VQRZ RU LFH
x %UDNH XQLW LQRSHUDWLYH LH EUDNH XQLW UHSRUWHG
DV ³FROG EUDNH´ IRU VHYHUDO IOLJKWV ZLWKRXW x 0RQLWRU DQG FDOO JURXQG VSRLOHUV H[WHQVLRQ
FRUUHVSRQGLQJ 0(/ HQWU\
x 0RQLWRU DQG FDOO DXWREUDNH RSHUDWLRQ
x $QWLVNLG WDFKRPHWHU PDOIXQFWLRQ
x %H UHDG\ WR WDNH RYHU IURP DXWREUDNH LI
x $EVHQFH RI VZLWFKLQJ RU ODWH VZLWFKLQJ IURP UHTXLUHG
1250 EUDNLQJ WR $/71 EUDNLQJ RU WR
HPHUJHQF\ EUDNLQJ LQ FDVH RI DEQRUPDO EUDNLQJ x 0RQLWRU HQJLQH RSHUDWLRQ LQ UHYHUVH WKUXVW
HJ LQFUHDVLQJ (*7 DQGRU HYLGHQFH RI VXUJH
x /DWH VHOHFWLRQ RI WKUXVW UHYHUVHUV
x 0RQLWRU DLUVSHHG LQGLFDWLRQ DQG UHWXUQ UHYHUVH
x $EVHQFH RI WDNHRYHU RU ODWH WDNHRYHU IURP OHYHUV WR WKH UHYHUVH LGOH SRVLWLRQ DW WKH
DXWREUDNH ZKHQ UHTXLUHG SXEOLVKHG LQGLFDWHG DLUVSHHG RU ZKHQ DLUVSHHG
IOXFWXDWLRQV RFFXU ZKLFKHYHU FRPH ILUVW
x ,QDGHTXDWH FURVVZLQG ODQGLQJ WHFKQLTXH DQG
x ,I UHTXLUHG XVH PD[LPXP SHGDO EUDNLQJ DQG
x ,QFRUUHFW GLIIHUHQWLDO EUDNLQJ WHFKQLTXH
x 'R QRW VWRS EUDNLQJ XQWLO DVVXUHG WKDW WKH
DLUFUDIW ZLOO VWRS ZLWKLQ WKH UHPDLQLQJ UXQZD\
OHQJWK

3DJH

LQIRUPDWLRQ RQ ODQGLQJ SHUIRUPDQFH DQG WHFKQLTXHV

'LVWDQFHV
x /DQGLQJ RQ :HW DQG &RQWDPLQDWHG

5XQZD\
x &URVVZLQG /DQGLQJ
'RF

'DWD


DLUSRUWV

DLUSRUWV
x )$$ ± $& $ DQG %




3DJH
/DQGLQJRQ:HWRU&RQWDPLQDWHG5XQZD\
,QWURGXFWLRQ 'DPS UXQZD\
)DFWRUV DVVRFLDWHG ZLWK ODQGLQJ RQ D ZHW UXQZD\ RU $ UXQZD\ LV FRQVLGHUHG GDPS ³ZKHQ WKH VXUIDFH LV
RQ D UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU QRW GU\ EXW ZKHQ WKH PRLVWXUH RQ WKH VXUIDFH GRHV
VOXVK VQRZ RU LFH VKRXOG EH DVVHVVHG FDUHIXOO\ QRW JLYH D VKLQ\ DSSHDUDQFH´
EHIRUH EHJLQQLQJ WKH DSSURDFK
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG :HW UXQZD\
GLVFXVVLRQ RI RSHUDWLRQDO IDFWRUV LQYROYHG LQ $ UXQZD\ LV FRQVLGHUHG WR EH ZHW ³ZKHQ WKH VXUIDFH
SODQQLQJ DQG FRQGXFWLQJ D ODQGLQJ RQ D ZHW RU LV FRYHUHG ZLWK ZDWHU RU HTXLYDOHQW QRW H[FHHGLQJ
FRQWDPLQDWHG UXQZD\ PP RU ZKHQ WKHUH LV VXIILFLHQW PRLVWXUH RQ WKH
UXQZD\ VXUIDFH WR FDXVH LW WR DSSHDU UHIOHFWLYH
6WDWLVWLFDO 'DWD
VKLQ\ EXW ZLWKRXW VLJQLILFDQW DUHDV RI VWDQGLQJ
ZDWHU´
5XQZD\ FRQGLWLRQ DORQH RU LQ FRPELQDWLRQ ZLWK
DGYHUVH FURVVZLQG LV D FLUFXPVWDQWLDO IDFWRU &RQWDPLQDWHG UXQZD\
LQ RI UXQZD\ H[FXUVLRQV RU UXQZD\ RYHUUXQV DW $ UXQZD\ LV FRQVLGHUHG WR EH FRQWDPLQDWHG ³ZKHQ

ODQGLQJ PRUH WKDQ RI WKH UXQZD\ VXUIDFH ZKHWKHU LQ
5XQZD\ FRQWDPLQDWLRQ ZLWK VWDQGLQJ ZDWHU VOXVK LVRODWHG DUHDV RU QRW ZLWKLQ WKH UHTXLUHG OHQJWK
VQRZ RU LFH LV D FDXVDO IDFWRU LQ RI DOO ODQGLQJ DQG ZLGWK EHLQJ XVHG ± LV FRYHUHG E\ HLWKHU
DFFLGHQWV x 6WDQGLQJ ZDWHU PRUH WKDQ PP LQFK
GHHS
'HILQLQJ WKH 5XQZD\ &RQGLWLRQ
x 6OXVK LH ZDWHU VDWXUDWHG ZLWK VQRZ RU ORRVH
7KH (XURSHDQ -$$ GHILQHV WKH UXQZD\ FRQGLWLRQ DV VQRZ HTXLYDOHQW WR PP LQFK RU PRUH
IROORZV RI ZDWHU
x 6QRZ ZKLFK KDV EHHQ FRPSUHVVHG LQWR D VROLG
'U\ UXQZD\ PDVV ZKLFK UHVLVWV IXUWKHU FRPSUHVVLRQ DQG ZLOO
$ GU\ UXQZD\ LV ³RQH WKDW LV QHLWKHU ZHW QRU KROG WRJHWKHU RU EUHDN LQWR OXPSV LI SLFNHG XS
FRQWDPLQDWHG´
LH FRPSDFWHG VQRZ RU
x ,FH LQFOXGLQJ ZHW LFH FRQWDPLQDQW UXQZD\
7KLV ³LQFOXGHV SDYHG UXQZD\V WKDW KDYH EHHQ IULFWLRQ FRHIILFLHQW RU EHORZ´
VSHFLDOO\ SUHSDUHG ZLWK JURRYHG RU SRURXV SDYHPHQW
DQG PDLQWDLQHG WR UHWDLQ DQ EUDNLQJ 8QFOHDQHG UXEEHU GHSRVLWV LQ WKH WRXFKGRZQ ]RQH
DFWLRQ HYHQ ZKHQ PRLVWXUH LV SUHVHQW´
HIIHFWLYHO\ GU\
UHVXOW LQ WKH UXQZD\ VXUIDFH WR EH VOLSSHU\ZKHQ

ZHW

3DJH
)DFWRUV DQG (IIHFWV +\GURSODQLQJ UHVXOWV LQ D SDUWLDO RU WRWDO UHGXFWLRQ RI

FRQWDFW VXUIDFH EHWZHHQ WKH WLUH DQG WKH UXQZD\ DQG
%UDNLQJ DFWLRQ LQ D FRUUHVSRQGLQJ ORVV RI IULFWLRQ FRHIILFLHQW
7KH SUHVHQFH RI IOXLG FRQWDPLQDQW LH VWDQGLQJ 0DLQZKHHOV DQG QRVHZKHHOV HTXDOO\ FDQ EH
ZDWHU VOXVK RU ORRVH VQRZ RU KDUG FRQWDPLQDQW DIIHFWHG E\ K\GURSODQLQJ WKXV DIIHFWLQJ WKH EUDNLQJ
LH FRPSDFWHG VQRZ RU LFH RQ WKH UXQZD\ SHUIRUPDQFH DQG WKH HIIHFWLYHQHVV RI WKH QRVH
DGYHUVHO\ DIIHFWV WKH EUDNLQJ SHUIRUPDQFH VWRSSLQJ ZKHHOVWHHULQJ
IRUFH E\
+\GURSODQLQJ DOZD\V RFFXUV LQ VRPH GHJUHH ZKHQ
x 5HGXFLQJ WKH IULFWLRQ IRUFH EHWZHHQ WKH WLUHV DQG RSHUDWLQJ RQ D IOXLGFRQWDPLQDWHG UXQZD\
WKH UXQZD\ VXUIDFH
7KH UHGXFWLRQ RI IULFWLRQ IRUFH GHSHQGV RQ WKH 7KH SRWHQWLDO IRU VHYHUH K\GURSODQLQJ GLUHFWO\
IROORZLQJ IDFWRUV GHSHQGV RQ WKH IROORZLQJ IDFWRUV
WLUH WUHDG FRQGLWLRQ ZHDU DQG LQIODWLRQ

x $EVHQFH RI UXQZD\ VXUIDFH URXJKQHVV DQG
SUHVVXUH GUDLQDJH HJ WUDQVYHUVH VDZFXW JURRYHV
W\SH RI UXQZD\ VXUIDFH DQG

x 7KLFNQHVV DQG QDWXUH HJ ZDWHU RU VOXVK
RI WKH IOXLG FRQWDPLQDQW OD\HU
DQWLVNLG V\VWHP SHUIRUPDQFH
x 7LUH LQIODWLRQ SUHVVXUH
x &UHDWLQJ D IOXLG OD\HU EHWZHHQ WKH WLUHV DQG x *URXQG VSHHG DQG
WKH UXQZD\ VXUIDFH WKXV UHGXFLQJ WKH FRQWDFW
DUHD DQG FUHDWLQJ D ULVN RI K\GURSODQLQJ x $QWLVNLG RSHUDWLRQ HJ ORFNHGZKHHO FDVH
LH FRPSOHWH ORVV RI FRQWDFW DQG IULFWLRQ

EHWZHHQ WKH WLUHV DQG WKH UXQZD\ VXUIDFH $ PLQLPXP K\GURSODQLQJ VSHHG FDQ EH GHILQHG IRU
HDFK DLUFUDIW W\SH DQG UXQZD\ FRQWDPLQDQW
)OXLG FRQWDPLQDQWV VXFK DV VWDQGLQJ ZDWHU VOXVK

RU ORRVH VQRZ DOVR SRVLWLYHO\ FRQWULEXWH WR WKH +\GURSODQLQJ PD\ RFFXU DW WRXFKGRZQ SUHYHQWLQJ
VWRSSLQJ IRUFH DW ODQGLQJ E\ WKH ZKHHOV IURP VSLQQLQJ DQG IURP VHQGLQJ WKH
ZKHHOURWDWLRQVLJQDO WR YDULRXV DLUFUDIW V\VWHPV
x 5HVLVWLQJ WR WKH ZKHHOV IRUZDUG PRYHPHQW WKXV
FDXVLQJ D GLVSODFHPHQW GUDJ 3HUIRUPLQJ D ILUP WRXFKGRZQ FDQ SUHYHQW
K\GURSODQLQJ DW WRXFKGRZQ DQG HQVXUH URWDWLRQ RI
x &UHDWLQJ D VSUD\ SDWWHUQ WKDW VWULNHV WKH ODQGLQJ PDLQODQGLQJJHDU ZKHHOV
JHDUV DQG DLUIUDPH WKXV FDXVLQJ DQ
LPSLQJHPHQW GUDJ
'LUHFWLRQDO FRQWURO
&HUWLILFDWLRQ UHJXODWLRQV UHTXLUH WKH VSUD\
SDWWHUQ WR EH GLYHUWHG DZD\ IURP HQJLQH DLU 2Q FRQWDPLQDWHG UXQZD\ GLUHFWLRQDO FRQWURO VKRXOG
LQOHWV WR SUHYHQW DIIHFWLQJ HQJLQH SHUIRUPDQFH EH PDLQWDLQHG XVLQJ UXGGHU SHGDOV GR QRW XVH
QRVHZKHHOVWHHULQJ WLOOHU XQWLO DLUFUDIW KDV VORZHG
7KH EUDNLQJ DFWLRQ LV WKH QHW HIIHFW RI WKH DERYH GRZQ WR WD[L VSHHG
VWRSSLQJ IRUFHV DV LOOXVWUDWHG E\ )LJXUH DQG
)LJXUH 2Q ZHW RU FRQWDPLQDWHG UXQZD\ XVH RI QRVHZKHHO
VWHHULQJ DERYH WD[L VSHHG PD\ UHVXOW LQ
K\GURSODQLQJ RI QRVHZKHHOV KHQFH LQ ORVV RI QRVH
+\GURSODQLQJ DTXDSODQLQJ ZKHHOV FRUQHULQJ IRUFH DQG WKXV LQ ORVV RI
GLUHFWLRQDO FRQWURO
+\GURSODQLQJ RFFXUV ZKHQ WKH WLUH FDQQRW VTXHH]H
DQ\ PRUH RI WKH IOXLG FRQWDPLQDQW OD\HU EHWZHHQ LWV ,I GLIIHUHQWLDO EUDNLQJ LV QHFHVVDU\ SHGDO EUDNLQJ
WUHDG DQG WKH UXQZD\ VXUIDFH WKH WLUH OLIWV IURP WKH VKRXOG EH DSSOLHG RQ WKH UHTXLUHG VLGH DQG EH
UXQZD\ VXUIDFH DQG VXUIV WKH ZDYH RI ZDWHU FRPSOHWHO\ UHOHDVHG RQ WKH RSSRVLWH VLGH WR UHJDLQ
WLUH FRUQHULQJ

3DJH
%ULHILQJ 1RWH &URVVZLQG /DQGLQJ SURYLGHV 8QGHUVWDQGLQJ 6WRSSLQJ )RUFHV GXULQJ
H[SDQGHG LQIRUPDWLRQ RQ GLUHFWLRQDO FRQWURO XQGHU
/DQGLQJ 5ROO
)LJXUH VKRZV WKH GLVWULEXWLRQ RI WKH UHVSHFWLYH

$VVHVVLQJ /DQGLQJ 'LVWDQFH VWRSSLQJ IRUFHV DV D IXQFWLRQ RI WKH GHFUHDVLQJ
DLUVSHHG GXULQJ D W\SLFDO ODQGLQJ UROO XVLQJ
/DQGLQJ GLVWDQFHV DUH SURYLGHG LQ WKH )&20 DQG DXWREUDNH LQ /2: PRGH DQG PD[LPXP UHYHUVH
45+ IRU D GU\ UXQZD\ DQG IRU WKH IROORZLQJ UXQZD\ WKUXVW VHH DOVR %ULHILQJ 1RWH 2SWLPXP 8VH
FRQGLWLRQV DQG FRQWDPLQDQWV RI %UDNLQJ 'HYLFHV
x :HW
x PP LQFK VWDQGLQJ ZDWHU
7KH WRWDO VWRSSLQJ IRUFH LV WKH FRPELQHG HIIHFW RI
x PP LQFK VWDQGLQJ ZDWHU

x $HURG\QDPLF GUDJ LQFOXGLQJ WKH LPSLQJHPHQW
GUDJ JUHHQ FXUYH
x PP LQFK VOXVK
1RWH
x PP LQFK VOXVK 7KH WHUP DHURG\QDPLF GUDJ UHIHUV WR WKH GUDJ RI
x &RPSDFWHG VQRZ DQG WKH DLUSODQH GXULQJ WKH UROORXW LQFOXGLQJ WKH
x ,FH
LPSLQJHPHQW GUDJ RQ IOXLG FRQWDPLQDWHG
UXQZD\ QRW WR WKH LQDSSURSULDWH WHFKQLTXH RI
$FWXDO ODQGLQJ GLVWDQFHV DUH SURYLGHG IRU DOO UXQZD\ NHHSLQJ WKH QRVH KLJK WR VXSSRVHGO\ LQFUHDVH
FRQGLWLRQV DQG DVVXPH WKH RYHUDOO DHURG\QDPLF VWRSSLQJ IRUFH
x $Q HYHQ GLVWULEXWLRQ RI WKH FRQWDPLQDQW x 5HYHUVH WKUXVW EOXH FXUYH DQG
x 7KH XVH RI IXOO SHGDO EUDNLQJ EHJLQQLQJ DW x %UDNLQJ DQG UROOLQJ GUDJ LQFOXGLQJ WKH
WRXFKGRZQ DQG GLVSODFHPHQW GUDJ UHG FXUYH
x $Q RSHUDWLYH DQWLVNLG V\VWHP
$XWRODQG ODQGLQJ GLVWDQFHV XVLQJ DXWREUDNH DUH 7\SLFDO 'HFHOHUDWLQJ )RUFHV GXULQJ /DQGLQJ 5ROO
SXEOLVKHG IRU DOO UXQZD\ FRQGLWLRQV
,Q DGGLWLRQ FRUUHFWLRQ IDFWRUV LQ DUH SURYLGHG WR
DFFRXQW IRU WKH IROORZLQJ HIIHFWV 6WRSSLQJ
)RUFH
x $LUSRUW HOHYDWLRQ $XWREUDNH /2: 0RGH

7\SLFDOO\ SHU IW 7RWDO 6WRSSLQJ )RUFH
x :LQG FRPSRQHQW
7\SLFDOO\ SHU NW WDLOZLQG FRPSRQHQW $HURG\QDPLF 'UDJ
$XWREUDNH 'HPDQG
7\SLFDOO\ ± SHU NW KHDGZLQG %UDNLQJ DQG

FRPSRQHQW DQG 0D[LPXP
5ROOLQJ 'UDJ
5HYHUVH
x 7KUXVW UHYHUVHUV HIIHFW 7KUXVW
7KUXVW UHYHUVHU HIIHFW GHSHQGV RQ UXQZD\

FRQGLWLRQ DQG W\SH RI EUDNLQJ DV LOOXVWUDWHG
E\ )LJXUH $LUVSHHG NW
)LJXUH

3DJH
6WRSSLQJ (QHUJ\ 'LVWULEXWLRQ RQ 7KH FRQWULEXWLRQ RI WKH GLIIHUHQW EUDNLQJ GHYLFHV WR
&RQWDPLQDWHG 5XQZD\ WKH WRWDO VWRSSLQJ HQHUJ\ RQ D UXQZD\ FRQWDPLQDWHG

ZLWK ó LQFK RI VWDQGLQJ ZDWHU FDQ EH FRPSDUHG WR
)LJXUH LOOXVWUDWHV WKH FRQWULEXWLRQ WR WKH WRWDO

WKHLU UHVSHFWLYH FRQWULEXWLRQV RQ D GU\ UXQZD\ DV
VWRSSLQJ HQHUJ\ RI WKH GLIIHUHQW EUDNLQJ GHYLFHV DV LOOXVWUDWHG LQ %ULHILQJ 1RWH ² 2SWLPXP 8VH RI
D IXQFWLRQ RI WKH GHVLUHG RU DFKLHYHG VWRSSLQJ %UDNLQJ 'HYLFHV )LJXUH

GLVWDQFH RQ D UXQZD\ FRQWDPLQDWHG ZLWK ó LQFK RI
ZDWHU x 7KH FRQWULEXWLRQ RI WKH DHURG\QDPLF GUDJ
LQFUHDVHV GXH WR WKH DGGLWLRQDO LPSLQJHPHQW
)LJXUH SURYLGHV GUDJ
x 7KH VWRSSLQJ GLVWDQFH ODQGLQJ UROO DFKLHYHG

IRU D JLYHQ W\SH RI EUDNLQJ LH SHGDO EUDNLQJ RU
x 7KH FRQWULEXWLRQ RI WKH EUDNLQJ DQG UROOLQJ GUDJ
LH QHW HIIHFW RI EUDNLQJ IRUFH DQG
VHOHFWHG DXWREUDNH PRGH
GLVSODFHPHQW GUDJ GHFUHDVHV
RU
x 7KH QHFHVVDU\ W\SH RI EUDNLQJ LH SHGDO

x 7KH FRQWULEXWLRQ RI WKH WKUXVW UHYHUVHU VWRSSLQJ
IRUFH LV LQGHSHQGHQW IURP WKH UXQZD\ FRQGLWLRQ
EUDNLQJ RU VHOHFWHG DXWREUDNH PRGH IRU D
GHVLUHG RU UHTXLUHG VWRSSLQJ GLVWDQFH
*LYHQ $LUFUDIW 0D[LPXP /DQGLQJ :HLJKW 9 $33 ± %RWK 5HYHUVHUV

6HD /HYHO ,6$ ± ó ,QFK :DWHU
RI 6WRSSLQJ (QHUJ\
0D[LPXP SHGDO EUDNLQJ W\SLFDOO\ ± NWV
$XWREUDNH PHGLXP W\SLFDOO\ ± NWV
$XWREUDNH ORZ W\SLFDOO\ ± NWV

1R EUDNLQJ

$HURG\QDPLF 'UDJ

0D[LPXP 5HYHUVH 7KUXVW

%UDNLQJ DQG 5ROOLQJ 'UDJ

6WRSSLQJ /DQGLQJ 'LVWDQFH P

)LJXUH

3DJH
)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH 2Q UXQZD\ FRQWDPLQDWHG E\ VWDQGLQJ ZDWHU RU

VOXVK WKH ODQGLQJ GLVWDQFHV ZLWK PHGLXP RU ORZ
DXWREUDNH VHWWLQJV DUH YHU\ VLPLODU EHFDXVH
x 7KH GHFHOHUDWLRQ UDWH LV GULYHQ SULPDULO\ E\ WKH
5XQZD\ FRQGLWLRQ DQG W\SH RI EUDNLQJ
LOOXVWUDWHV WKH HIIHFW RI UXQZD\ FRQGLWLRQ RQ DHURG\QDPLF GUDJ UROOLQJ GUDJ DQG UHYHUVH
WKUXVW DQG EHFDXVH
)LJXUH
ODQGLQJ GLVWDQFH IRU YDULRXV DSSOLFDEOH UXQZD\
FRQGLWLRQV DQG IRU WKUHH EUDNLQJ PRGHV x 7KH VHOHFWHG DXWREUDNH GHFHOHUDWLRQ UDWH
HJ ZKHQ XVLQJ D PHGLXP DXWREUDNH PRGH
FDQQRW EH DFKLHYHG WKH OLJKW LQGLFDWLQJ WKDW WKH
(IIHFW RI %UDNLQJ DQG 5XQZD\ &RQGLWLRQ VHOHFWHG GHFHOHUDWLRQ UDWH LV DFKLHYHG GRHV QRW
LOOXPLQDWH

/DQGLQJ GLVWDQFH P
7KUXVW UHYHUVHU
LOOXVWUDWHV WKH HIIHFW RI UHYHUVH WKUXVW

)LJXUH

LH UHGXFWLRQ RI ODQGLQJ GLVWDQFH LQ ZLWK ERWK
0DQXDO /DQGLQJ
3HGDO %UDNLQJ
UHYHUVHUV RSHUDWLYH
$XWRODQG
$XWREUDNH 0HGLXP :KHQ DXWREUDNH LV XVHG WKH WKUXVW UHYHUVHU HIIHFW
$XWRODQG
LH FRQWULEXWLRQ WR WKH ODQGLQJ GLVWDQFH UHGXFWLRQ
GHSHQGV RQ
$XWREUDNH /RZ

x 7KH VHOHFWHG GHFHOHUDWLRQ UDWH DQG WKH WLPH

U\
H
Z
U
VK
VK
H
WH
WH
,F
'
R
:
VOX
VOX
D
VQ
Z
GHOD\ IRU DXWREUDNH DFWLYDWLRQ DV DSSOLFDEOH

G
LQ
LQ
LQ
LQ
H

FW

D

DQG

S
P
R
&
5XQZD\ FRQGLWLRQ
x 5XQZD\ FRQGLWLRQ LH FRQWULEXWLRQ RI
)LJXUH
FRQWDPLQDQW WR WKH GHFHOHUDWLRQ UDWH
7\SLFDO
(IIHFW RI 7KUXVW 5HYHUVHU
)LJXUH LV EDVHG RQ D UHIHUHQFH P ODQGLQJ 5XQZD\ &RQGLWLRQ
GLVWDQFH W\SLFDO ODQGLQJ GLVWDQFH IRU D PDQXDO
ODQGLQJ RQ GU\ UXQZD\ ZLWK IXOO SHGDO EUDNLQJ DQG QR
RZ
VQ
UHYHUVH
HU
HU
HG
K
K
XV
XV
DW
DW
FW
Z
VO
VO
SD
LQ
LQ
LQ
LQ
RP
HW
U\
H
:

,F
'
&
)RU HDFK UXQZD\ FRQGLWLRQ WKH IROORZLQJ ODQGLQJ
GLVWDQFHV FDQ EH FRPSDUHG

/DQGLQJ 'LVWDQFH 5HGXFWLRQ
x /DQGLQJ GLVWDQFH IRU PDQXDO ODQGLQJ ZLWK

IXOO SHGDO EUDNLQJ RU
x /DQGLQJ GLVWDQFH IRU DXWRODQG ZLWK ORZ RU
PHGLXP DXWREUDNH
0DQXDO /DQGLQJ
)RU PDQXDO ODQGLQJ ZLWK IXOO SHGDO EUDNLQJ RU IRU 3HGDO %UDNLQJ
DXWRODQG ZLWK DXWREUDNH WKH HIIHFW RI UXQZD\ $XWRODQG
FRQGLWLRQ FDQ EH DVVHVVHG

$XWREUDNH 0HGLXP
$XWRODQG
$XWREUDNH /RZ
:KHQ DXWREUDNH LV XVHG WKH EUDNLQJ FRQWULEXWLRQ

GHSHQGV RQ WKH VHOHFWHG GHFHOHUDWLRQ UDWH DQG RQ
WKH DQWLVNLG DFWLYDWLRQ SRLQW ZKLFKHYHU LV DFKLHYHG )LJXUH
ILUVW DV LOOXVWUDWHG E\ DQG )LJXUH )LJXUH 7\SLFDO

3DJH
2Q GU\ RU ZHW UXQZD\ WKH HIIHFW RI WKUXVW UHYHUVHU x $LPLQJ IRU WKH WRXFKGRZQ ]RQH
RQ ODQGLQJ GLVWDQFH GHSHQGV RQ WKH VHOHFWHG
DXWREUDNH PRGH LH VHOHFWHG GHFHOHUDWLRQ UDWH
x 3HUIRUPLQJ D ILUP WRXFKGRZQ WR SUHYHQW
K\GURSODQLQJ DQG HQVXUH URWDWLRQ RI PDLQ
DQG DVVRFLDWHG WLPHGHOD\ HJ PHGLXP DXWREUDNH
ODQGLQJ JHDU ZKHHOV
PRGH ZLWKRXW WLPH GHOD\ YHUVXV ORZ DXWREUDNH
PRGH ZLWK WLPH GHOD\ DV LOOXVWUDWHG E\ )LJXUH x 8VLQJ PD[LPXP UHYHUVH WKUXVW DV VRRQ DV
DQG )LJXUH SRVVLEOH DIWHU WRXFKGRZQ EHFDXVH WKUXVW
UHYHUVHU HIILFLHQF\ LV KLJKHU DW KLJK VSHHG
x &RQILUP WKH H[WHQVLRQ RI JURXQG VSRLOHUV

2SHUDWLRQDO *XLGHOLQHV x 0RQLWRULQJ WKH RSHUDWLRQ RI DXWREUDNH RQ
FRQWDPLQDWHG UXQZD\ WKH VHOHFWHG GHFHOHUDWLRQ
7KH RSHUDWLRQDO JXLGHOLQHV SURYLGH LQ %ULHILQJ 1RWH
UDWH PD\ QRW EH DFKLHYHG WKHUHIRUH WKH OLJKW
2SWLPXP 8VH RI %UDNLQJ 'HYLFHV IRU
LQGLFDWLQJ WKDW WKH VHOHFWHG GHFHOHUDWLRQ UDWH LV
RSHUDWLRQ RQ GU\ UXQZD\ DUH IXOO\ DSSOLFDEOH ZKHQ
DFKLHYHG PD\ QRW LOOXPLQDWH
RSHUDWLQJ RQ D ZHW UXQZD\ RU RQ D UXQZD\
FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU VOXVK VQRZ RU x /RZHULQJ WKH QRVH ODQGLQJ JHDU ZLWKRXW XQGXH
LFH GHOD\ WR
7KH IROORZLQJ RSHUDWLRQDO UHFRPPHQGDWLRQV QHHG WR

LQFUHDVH WKH ZHLJKWRQZKHHOV DQG WKXV
LQFUHDVH WKH EUDNLQJ HIILFLHQF\ DQG
EH HPSKDVL]HG
x 'LYHUVLRQ WR DQ DLUSRUW ZLWK EHWWHU UXQZD\

DFWLYDWH V\VWHPV DVVRFLDWHG ZLWK QRVH
ODQGLQJ JHDU VZLWFKHV HJ DQWLVNLG
FRQGLWLRQV DQGRU OHVV FURVVZLQG FRPSRQHQW
UHIHUHQFH VSHHG
ZKHQ DFWXDO FRQGLWLRQV VLJQLILFDQWO\ GLIIHU IURP
IRUHFDVW FRQGLWLRQV RU LQ FDVH RI V\VWHP x $V UHTXLUHG RU ZKHQ WDNLQJ RYHU IURP
PDOIXQFWLRQ DXWREUDNH DSSO\LQJ EUDNHV QRUPDOO\ ZLWK D
VWHDG\ SUHVVXUH
x $QWLFLSDWLQJ DV\PPHWU\ HIIHFWV WKDW ZRXOG
SUHYHQW HIILFLHQW EUDNLQJ RU GLUHFWLRQDO FRQWURO x 8VLQJ UXGGHU SHGDOV DQG GLIIHUHQWLDO EUDNLQJ DV
HJ FURVVZLQG VLQJOHWKUXVWUHYHUVHU UHTXLUHG IRU GLUHFWLRQDO FRQWURO LH QRW XVLQJ
RSHUDWLRQ WKH QRVHZKHHOVWHHULQJ WLOOHU
x $YRLGLQJ ODQGLQJ RQ D FRQWDPLQDWHG UXQZD\ x ,I GLIIHUHQWLDO EUDNLQJ LV QHFHVVDU\ DSSO\LQJ

ZLWKRXW DQWLVNLG RU ZLWK D VLQJOH WKUXVW UHYHUVHU SHGDO EUDNLQJ RQ WKH UHTXLUHG VLGH DQG UHOHDVLQJ
FRPSOHWHO\ WKH SHGDO DFWLRQ RQ WKH RSSRVLWH
x )RU LQRSHUDWLYH LWHPV DIIHFWLQJ WKH EUDNLQJ RU OLIW
VLGH DQG
GXPSLQJ FDSDELOLW\ UHIHUULQJ WR WKH DSSOLFDEOH
)&20 DQG 45+ IRU LQIOLJKW PDOIXQFWLRQV

x $IWHU UHDFKLQJ WD[L VSHHG XVLQJ QRVHZKHHO
VWHHULQJ ZLWK FDUH
RU
0LQLPXP (TXLSPHQW /LVW 0(/ RU 'LVSDWFK

'HYLDWLRQ *XLGH ''* IRU NQRZQ GLVSDWFK $VVRFLDWHG %ULHILQJ 1RWHV
FRQGLWLRQV

x 6HOHFWLQJ DXWREUDNH ZLWK D PHGLXP RU ORZ
LQIRUPDWLRQ IRU D FRPSOHWH RYHUYLHZ RI IDFWRUV
VHWWLQJ LI WKH FRQWDPLQDQW LV HYHQO\ GLVWULEXWHG
LQYROYHG ZKHQ ODQGLQJ RQ D FRQWDPLQDWHG UXQZD\
2Q FRQWDPLQDWHG UXQZD\ XVH RI PHGLXP VHWWLQJ
XVXDOO\ LV UHFRPPHQGHG WR DVVXUH LPPHGLDWH x )O\LQJ 6WDELOL]HG $SSURDFKHV
EUDNLQJ DFWLRQ DIWHU WRXFKGRZQ LH ZLWKRXW WLPH
GHOD\
'LVWDQFHV
x $SSURDFKLQJ RQ JOLGH SDWK DQG DW WKH WDUJHW ILQDO
DSSURDFK VSHHG
x &URVVZLQG /DQGLQJ

3DJH
'RF

'DWD


DLUSRUWV

DLUSRUWV
x )$$ ± $& $ ± :DWHU 6OXVK DQG 6QRZ RQ

WKH 5XQZD\




3DJH
:KDW·V<RXU&XUUHQW:LQG"
,QWURGXFWLRQ 'HILQLQJ $YHUDJH:LQG DQG *XVW
6HYHUDO VRXUFHV RI ZLQG LQIRUPDWLRQ DUH DYDLODEOH WR :LQG GLUHFWLRQ DQG YHORFLW\ DUH VDPSOHG HYHU\
WKH IOLJKW FUHZ VHFRQG
x $7& LH 0(7$5 $7,6 DQG WRZHU ZLQGV DQG
7KH ZLQG SURILOH LV DYHUDJHG RYHU WKH ODVW
x $LUFUDIW V\VWHPV LH ,56 DQG )06 ZLQGV PLQXWH SHULRG WR SURYLGH WKH $7,6 RU WRZHU
UHSRUWHG DYHUDJHZLQG
(DFK ZLQG LQIRUPDWLRQ PXVW EH XQGHUVWRRG IRU
DSSURSULDWH XVH GXULQJ YDULRXV IOLJKW SKDVHV 7KH DYHUDJH ZLQG LV DYDLODEOH WR WKH FRQWUROOHU RQ
D GLVSOD\ WHUPLQDO VRPH FRQWURO WRZHUV KRZHYHU
FDQ DOVR SURYLGH LQVWDQWDQHRXV LQGLFDWLRQV RI ZLQG
6WDWLVWLFDO 'DWD GLUHFWLRQ DQG YHORFLW\
$GYHUVH ZLQG FRQGLWLRQV LH WDLO ZLQG FRPSRQHQW 7KH ZLQG SURILOH LV DOVR REVHUYHG RYHU WKH ODVW
KLJK FURVVZLQG FRPSRQHQW ZLQG JXVWLQHVV RU ORZ PLQXWH SHULRG WKH PD[LPXP SHDN ZLQG YDOXH
OHYHO ZLQG VKHDU DUH LQYROYHG LQ PRUH WKDQ UHFRUGHG GXULQJ WKLV SHULRG GHILQHV WKH JXVW YDOXH
RI ODQGLQJ LQFLGHQWV DQG DFFLGHQWV ,&$2 FRQVLGHUV WKDW WKH ZLQG LV JXVW\ RQO\ LI WKH
%HFDXVH ZLQG VHQVRUV RIWHQ DUH GLVWDQW IURP PLQXWH SHDN YDOXH H[FHHGV WKH PLQXWH
WKH WRXFKGRZQ ]RQH ZLQG FRQGLWLRQV DW WRXFKGRZQ DYHUDJHZLQG E\ NW RU PRUH KRZHYHU JXVW YDOXHV
IUHTXHQWO\ GLIIHU IURP FRQGLWLRQV UHSRUWHG E\ $7& ORZHU WKDQ NW RIWHQ DUH SURYLGHG E\ DLUSRUW
ZHDWKHU VHUYLFHV
,&$2 6WDQGDUGV
)LJXUH VKRZV D PLQXWH ZLQG SURILOH IHDWXULQJ
5HFRPPHQGDWLRQV IRU PHDVXULQJ DQG UHSRUWLQJ x $ PLQXWH DYHUDJH ZLQG RI NW DQG
ZLQG LQIRUPDWLRQ DUH GHILQHG E\ WKH ,QWHUQDWLRQDO
&LYLO $YLDWLRQ 2UJDQL]DWLRQ ,&$2 DQG x $ PLQXWH JXVW RI NW LH D NW SHDN ZLQG
YHORFLW\ GXULQJ WKH PLQXWH SHULRG
x 5HOD\HG WR WKH :RUOG 0HWHRURORJLFDO
2UJDQL]DWLRQ :02 1RWH
x ,PSOHPHQWHG E\ WKH PHPEHU VWDWHV¶ 1DWLRQDO
7KH $7,6 DQG WRZHU ZLQGV DUH UHIHUHQFHG WR WKH
:HDWKHU 6HUYLFHV 1:6 PDJQHWLF QRUWK XQOHVV DOO DLUSRUW GLUHFWLRQV

UHIHUHQFHG WR WKH WUXH QRUWK IRU H[DPSOH LQ UHJLRQV
DUH
x 7KURXJK WKH ORFDO $LUSRUW :HDWKHU 6HUYLFHV

ZLWK ODUJH PDJQHWLF YDULDWLRQ
$:6
:KDW·V <RXU &XUUHQW :LQG "

3DJH
:LQG NW $YHUDJHZLQG DQG JXVW YDOXHV GLVSOD\HG WR WKH

*XVW FRQWUROOHU DUH UHIUHVKHG HYHU\ PLQXWH

7KH PLQXWH DYHUDJHZLQG DQG WKH PLQXWH JXVW

DUH XVHG E\ $7& IRU
$YHUDJH
:LQG
x $7,6 PHVVDJHV

x :LQG LQIRUPDWLRQ RQ *1' 7:5 $33 DQG
,1)2 IUHTXHQFLHV

0(7$5 REVHUYDWLRQ PHVVDJHV LQFOXGH D PLQXWH
DYHUDJHZLQG DQG WKH PLQXWH JXVW DV LOOXVWUDWHG

E\ )LJXUH ;;; LV WKH ZLQG GLUHFWLRQ UHIHUHQFHG
0LQXWHV
WR WKH WUXH QRUWK
:LQG NW *XVWLQJ NW
:LQG NW
)LJXUH *XVW

,I WKH ZLQG SHDN YDOXH LV REVHUYHG GXULQJ WKH ODVW
PLQXWH SHULRG WKH JXVW EHFRPHV SDUW RI WKH $YHUDJH
DYHUDJH ZLQG DV LOOXVWUDWHG E\ )LJXUH :LQG

:LQG NW

$YHUDJH
:LQG
0LQXWHV

0(7$5 :LQG ;;;*.7

)LJXUH
0D[LPXP 'HPRQVWUDWHG &URVVZLQG

0LQXWHV 7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG SXEOLVKHG
:LQG NW *XVWLQJ NW
LQ WKH 3HUIRUPDQFH VHFWLRQ RI WKH DSSURYHG
$LUSODQH )OLJKW 0DQXDO $)0 LV WKH PD[LPXP
FURVVZLQG FRPSRQHQW WKDW KDV EHHQ HQFRXQWHUHG
)LJXUH DQG GRFXPHQWHG GXULQJ FHUWLILFDWLRQ IOLJKW WHVWV RU
VXEVHTXHQWO\
RU QR UHIHUHQFH WR JXVW LI WKH NW JXVW LV QRW 7KH ZLQG YDOXH LV UHFRUGHG GXULQJ D SHULRG
DFFRXQWHG IRU EUDFNHWLQJ WKH WRXFKGRZQ WLPH W\SLFDOO\ IURP

IW DERYH DLUILHOG HOHYDWLRQ GRZQ WR WD[L VSHHG

3DJH
)RU VRPH DLUFUDIW PRGHOV LI D VLJQLILFDQW JXVW FRXOG )DFWRUV $IIHFWLQJ &URVVZLQG &DSDELOLW\
EH UHFRUGHG GXULQJ WKLV SHULRG D GHPRQVWUDWHG JXVW
YDOXH LV DOVR SXEOLVKHG LQ WKH $)0 DQG )&20 7KH IROORZLQJ IDFWRUV UXQZD\ FRQGLWLRQV RU
FRQILJXUDWLRQV DIIHFW WKH FURVVZLQG FDSDELOLW\
7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG

x ,V QRW DQ RSHUDWLQJ OLPLWDWLRQ FRQWDPLQDQW
x 'RHV QRW QHFHVVDULO\ UHIOHFW WKH DLUFUDIW x 6\VWHPV PDOIXQFWLRQV HJ UXGGHU MDP RU
PD[LPXP FURVVZLQG FDSDELOLW\ DQG
x 0(/ FRQGLWLRQV HJ QRVH ZKHHO VWHHULQJ

x *HQHUDOO\ DSSOLHV WR D VWHDG\ ZLQG LQRSHUDWLYH
1HYHUWKHOHVV D VXUYH\ FRQGXFWHG E\ $LUEXV
,QGXVWULH LQGLFDWHV WKDW RI RSHUDWRUV FRQVLGHU :LQG ,QIRUPDWLRQ RQ 1DYLJDWLRQ 'LVSOD\
WKH PD[LPXP GHPRQVWUDWHG FURVVZLQG DV
D OLPLWDWLRQ :LQG LQIRUPDWLRQ RQ WKH QDYLJDWLRQ GLVSOD\ 1'
:KHQ QR GHPRQVWUDWHG JXVW YDOXH LV DYDLODEOH FRQVLVWV RI WZR HOHPHQWV DV VKRZQ RQ )LJXUH
x $ ZLQG DUURZ
x RI RSHUDWRUV FRQVLGHU WKDW RQO\ WKH $7,6
7KH GLUHFWLRQ RI WKH ZLQG DUURZ LV UHIHUHQFHG
DQG WRZHU DYHUDJHZLQG PXVW EH ORZHU WKDQ WKH WR WKH PDJQHWLF QRUWK EHFDXVH WKH PDJQHWLF
PD[LPXP GHPRQVWUDWHG FURVVZLQG DQG QRUWK LV WKH UHIHUHQFH IRU WKH 1' PDS DQG
x RI RSHUDWRUV FRQVLGHU WKDW WKH $7,6 DQG
UHIOHFWV WKH ZLQG GLUHFWLRQ
WRZHU JXVW PXVW EH ORZHU WKDQ WKH PD[LPXP 7KH OHQJWK RI WKH ZLQG DUURZ LV IL[HG LH WKH
GHPRQVWUDWHG FURVVZLQG OHQJWK GRHV QRW YDU\ ZLWK YDU\LQJ ZLQG
YHORFLW\
7KH PDMRULW\ RI RSHUDWRUV KDYH SXEOLVKHG DQG
LPSOHPHQWHG UHGXFHG FURVVZLQG OLPLWV IRU RSHUDWLRQ 7KH ZLQG DUURZ LV WKH SULPDU\ ZLQG YLVXDOFXH
RQ FRQWDPLQDWHG UXQZD\ GXULQJ WKH ILQDO DSSURDFK WRJHWKHU ZLWK WKH
JURXQG VSHHG >*6@ GLVSOD\
7KH FURVVZLQG OLPLWV SXEOLVKHG E\ RSHUDWRUV IRU GU\
RU ZHW UXQZD\ DQG IRU UXQZD\ FRQWDPLQDWHG ZLWK $ GLJLWDO ZLQG LQIRUPDWLRQ WKDW SURYLGH WKH ZLQG
VWDQGLQJ ZDWHU VOXVK VQRZ RU LFH RIWHQ DUH ORZHU x
GLUHFWLRQ UHIHUHQFHG WR WKH WUXH QRUWK DQG ZLQG
E\ W\SLFDOO\ NW WKDQ WKH GHPRQVWUDWHG YDOXHV RU YHORFLW\
UHFRPPHQGHG YDOXHV SXEOLVKHG E\ $LUEXV ,QGXVWULH
7KH GLJLWDO ZLQG LQIRUPDWLRQ LV SULPDULO\ XVHG WR
0D[LPXP &RPSXWHG &URVVZLQG FRPSDUH WKH FXUUHQW ZLQG WR WKH SUHGLFWHG ZLQG
SURYLGHG RQ WKH FRPSXWHUL]HG IOLJKW SODQ
7KH PD[LPXP FRPSXWHG FURVVZLQG UHIOHFWV WKH
FRPSXWHG GHVLJQ FDSDELOLW\ RI WKH DLUFUDIW LQ WHUPV 'HSHQGLQJ RQ DLUFUDIW PRGHOV DQG VWDQGDUGV WKH
RI ZLQG LQIRUPDWLRQ PD\ EH FRPSXWHG HLWKHU E\ WKH
LQHUWLDO UHIHUHQFH V\VWHP ,56 RU E\ WKH IOLJKW
x 5XGGHU DXWKRULW\ PDQDJHPHQW V\VWHP )06
x 5ROO FRQWURO DXWKRULW\ DQG 'HSHQGLQJ RQ WKH ZLQG VRXUFH GLIIHUHQW WLPH GHOD\V
DUH DSSOLHG IRU VPRRWKLQJ LH DYHUDJLQJ WKH ZLQG
x :KHHOFRUQHULQJ FDSDELOLW\
YDOXH

3DJH
7KH ZLQG LQIRUPDWLRQ RQ WKH 1' LV UHIUHVKHG 7KH ,56 ZLQG LV FRPSXWHG DQG WUDQVPLWWHG WR WKH
W\SLFDOO\ WLPHV SHU VHFRQG DLUFUDIW HOHFWURQLF IOLJKW LQVWUXPHQW V\VWHP (),6 IRU
GLVSOD\ RQ WKH QDYLJDWLRQ GLVSOD\ 1' W\SLFDOO\
WLPHV SHU VHFRQG
7KH ,56 ZLQG GLVSOD\ LV WKHUHIRUH D QHDUUHDOWLPH

*6 ZLQG LQIRUPDWLRQ
&'1

7$6

10
)06 :LQG

7KH )06 ZLQG LV FRPSXWHG VLPLODUO\ WR WKH ,56 ZLQG
$0% EXW ZLWK WKH IROORZLQJ GLIIHUHQFHV
x 7KH DFFXUDF\ RI WKH JURXQG VSHHG UHFHLYHG

IURP WKH ,56 LV LQFUHDVHG E\ LQFOXGLQJ D
FRUUHFWLRQ EDVHG RQ WKH '0('0( SRVLWLRQ RU
*36 SRVLWLRQ ZKHQ DYDLODEOH DQG
&'1
x 7KH )06 ZLQG LV DYHUDJHG RYHU D VHFRQG
SHULRG
%HFDXVH RI WKLV VHFRQG VPRRWKLQJ WKH )06

ZLQG LV OHVV DFFXUDWH XQGHU WKH IROORZLQJ FRQGLWLRQV
x 6KLIWLQJ ZLQG
x 6LGHVOLS RU
)LJXUH x &OLPELQJ RU GHVFHQGLQJ WXUQ
7\SLFDO GLVSOD\
7KH )06 ZLQG FDQQRW EH FRQVLGHUHG DV
DQ LQVWDQWDQHRXV ZLQG EXW QHYHUWKHOHVV WKH )06
ZLQG LV
,56 :LQG x $ PRUH UHFHQW ZLQG LQIRUPDWLRQ WKDQ WKH $7,6 RU
WRZHU DYHUDJH ZLQG DQG
7KH ,56 ZLQG LV DVVHVVHG JHRPHWULFDOO\ XVLQJ WKH
WULDQJOH FRQVLVWLQJ RI WKH WUXH DLU VSHHG 7$6 x 7KH ZLQG SUHYDLOLQJ DORQJ WKH DLUFUDIW IOLJKW SDWK
YHFWRU JURXQG VSHHG *6 YHFWRU DQG ZLQG YHFWRU DIW RI WKH DLUFUDIW
7KH 7$6 YHFWRU DQG *6 YHFWRU DUH GHILQHG E\ WKHLU

YHORFLW\ DQG GLUHFWLRQ DV IROORZV
x 7$6 YHFWRU 7KH 0(7$5 ZLQG LV D PLQXWHDYHUDJH ZLQG
YHORFLW\ 7$6 IURP WKH DLU GDWD FRPSXWHU

7KH $7,6 RU WRZHU DYHUDJH ZLQG LV D PLQXWH
$'&
DYHUDJH ZLQG
GLUHFWLRQ PDJQHWLF KHDGLQJ IURP ,56
7KH $7,6 RU WRZHU JXVW LV WKH ZLQG SHDN YDOXH
x *6 YHFWRU GXULQJ WKH ODVW PLQXWH SHULRG
YHORFLW\ *6 IURP ,56 7KH $7,6 PHVVDJH LV XSGDWHG RQO\ LI WKH ZLQG
GLUHFWLRQ FKDQJHV E\ PRUH WKDQ GHJUHH RU LI WKH
GLUHFWLRQ PDJQHWLF WUDFN IURP ,56
ZLQG YHORFLW\ FKDQJHV E\ PRUH WKDQ NW RYHU
D PLQXWH WLPH SHULRG

3DJH
,I DQ LQVWDQWDQHRXV ZLQG UHDGLQJ LV GHVLUHG DQG

UHTXHVWHG IURP WKH $7& WKH SKUDVHRORJ\
³ LQVWDQWZLQG ³ VKRXOG EH XVHG LQ WKH UHTXHVW VRPH
FRQWUROOHUV PD\ SURYLGH VXFK LQVWDQWZLQG ZLWKRXW
UHTXHVW XQGHU VKLIWLQJ DQGRU JXVWLQJ ZLQG
FRQGLWLRQV
7KH ,56 ZLQG LV D QHDUUHDOWLPH ZLQG
7KH )06 ZLQG LV D VHFRQGDYHUDJH ZLQG
7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG JHQHUDOO\

DSSOLHV WR D VWHDG\ ZLQG DQG LV QRW D OLPLWDWLRQ
XQOHVV RWKHUZLVH VWDWHG
'HSHQGLQJ RQ WKH IOLJKW SKDVH DQG RQ WKH LQWHQGHG

XVH IOLJKW FUHZV VKRXOG VHOHFW WKH PRVW DSSURSULDWH
VRXUFH RI ZLQG LQIRUPDWLRQ

LQIRUPDWLRQ IRU D FRPSOHWH DZDUHQHVV RI
ZLQGUHODWHG IDFWRUV
x /DQGLQJ RQ :HW RU &RQWDPLQDWHG

5XQZD\
x &URVVZLQG /DQGLQJ
x ,&$2 $QQH[ ± 0HWHRURORJLFDO 6HUYLFH IRU

,QWHUQDWLRQDO $LU QDYLJDWLRQ &KDSWHU
x ,&$2 $QQH[ ± $LU 7UDIILF 6HUYLFHV
x :RUOG 0HWHRURORJLFDO 2UJDQL]DWLRQ :02

*XLGH WR 0HWHRURORJLFDO ,QVWUXPHQWV DQG
0HWKRGV RI 2EVHUYDWLRQ :02 ± 1R

3DJH
²&URVVZLQG/DQGLQJV
2Q D UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU

VOXVK VQRZ RU LFH D PD[LPXP UHFRPPHQGHG
,QWURGXFWLRQ
2SHUDWLRQV LQ FURVVZLQG FRQGLWLRQV UHTXLUH VWULFW FURVVZLQG LV GHILQHG 7DEOH GHSHQGLQJ RQ
DGKHUHQFH WR DSSOLFDEOH FURVVZLQG OLPLWDWLRQV RU x 5HSRUWHG EUDNLQJ DFWLRQ LI DYDLODEOH RU
PD[LPXP UHFRPPHQGHG FURVVZLQG YDOXHV
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG KDQGOLQJ x 5HSRUWHG UXQZD\ IULFWLRQ FRHIILFLHQW
WHFKQLTXHV SDUWLFXODUO\ ZKHQ RSHUDWLQJ RQ ZHW RU LI DYDLODEOH RU
FRQWDPLQDWHG UXQZD\V
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG x (TXLYDOHQW UXQZD\ FRQGLWLRQ LI EUDNLQJ DFWLRQ
GLVFXVVLRQ RI RSHUDWLRQDO IDFWRUV LQYROYHG LQ DQG UXQZD\ IULFWLRQ FRHIILFLHQW DUH QRW DYDLODEOH
SODQQLQJ DQG FRQGXFWLQJ WKH DSSURDFK DQG IODUH
XQGHU FURVVZLQG FRQGLWLRQV SDUWLFXODUO\ RQ D
FRQWDPLQDWHG UXQZD\ 5HSRUWHG 5HSRUWHG (TXLYDOHQW 0D[LPXP
%UDNLQJ 5XQZD\ 5XQZD\ 5HFRPPHQGHG
%ULHILQJ 1RWH ² /DQGLQJ RQ :HW RU

$FWLRQ )ULFWLRQ &RQGLWLRQ &URVVZLQG
&RQWDPLQDWHG 5XQZD\ SURYLGHV H[SDQGHG ,QGH[ &RHIILFLHQW
LQIRUPDWLRQ RQ RSHUDWLRQV RQ ZHW RU FRQWDPLQDWHG

UXQZD\V *RRG DQG
DERYH
1RWH NW
6WDWLVWLFDO 'DWD *RRG WR 1RWH NW
$GYHUVH ZLQG FRQGLWLRQV LH VWURQJ FURVVZLQGV

0HGLXP
WDLO ZLQGV DQG ZLQG VKHDU DUH LQYROYHG LQ RI
DSSURDFKDQGODQGLQJ DFFLGHQWV 0HGLXP WR 1RWH DQG NW
&URVVZLQG LQ DVVRFLDWLRQ ZLWK UXQZD\ FRQGLWLRQ LV D

1RWH

FLUFXPVWDQWLDO IDFWRU LQ QHDUO\ RI UXQZD\

H[FXUVLRQ HYHQWV 0HGLXP
3RRU
WR 1RWH DQG
1RWH
NW
RI FURVVZLQG LQFLGHQWV DQG DFFLGHQWV RFFXU
DW ODQGLQJ 3RRU DQG 1RWH DQG NW

EHORZ 1RWH
5XQZD\ &RQGLWLRQ DQG 0D[LPXP
5HFRPPHQGHG &URVVZLQG 8QUHOLDEOH 8QUHOLDEOH 1RWH DQG NW

1RWH
7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG DQG
PD[LPXP FRPSXWHG FURVVZLQG GLVFXVVHG LQ

%ULHILQJ 1RWH ² :KDW·V \RXU &XUUHQW
DUH DSSOLFDEOH RQO\ RQ GU\ GDPS RU ZHW

7DEOH
:LQG "
UXQZD\ 0D[LPXP 5HFRPPHQGHG &URVVZLQG 7\SLFDO
&URVVZLQG /DQGLQJV
3DJH
7KH (TXLYDOHQW 5XQZD\ &RQGLWLRQ GHILQHG E\ )LQDO $SSURDFK 7HFKQLTXH

1RWH WKURXJK 1RWH FDQ EH XVHG RQO\ IRU WKH
GHWHUPLQDWLRQ RI WKH PD[LPXP UHFRPPHQGHG )LJXUH VKRZV WKDW GHSHQGLQJ RQ WKH
FURVVZLQG UHFRPPHQGDWLRQV SXEOLVKHG LQ WKH DLUFUDIWRSHUDWLQJ
PDQXDO WKH ILQDO DSSURDFK XQGHU FURVVZLQG
7KLV (TXLYDOHQW 5XQZD\ &RQGLWLRQ FDQQRW EH XVHG FRQGLWLRQV PD\ EH FRQGXFWHG
IRU WKH FRPSXWDWLRQ RI WDNHRII DQG ODQGLQJ
SHUIRUPDQFH EHFDXVH LW GRHV QRW DFFRXQW IRU WKH x :LWK ZLQJVOHYHO LH DSSO\LQJ D GULIW FRUUHFWLRQ
HIIHFWV RI WKH GLVSODFHPHQW GUDJ DQG LPSLQJHPHQW LQ RUGHU WR WUDFN WKH UXQZD\ FHQWHUOLQH WKLV W\SH
RI DSSURDFK LV FDOOHG D FUDEEHG DSSURDFK RU
GUDJ DV GHILQHG LQ %ULHILQJ 1RWH ² /DQGLQJ RQ
:HW RU &RQWDPLQDWHG 5XQZD\

x :LWK D VWHDG\ VLGHVOLS LH ZLWK WKH DLUFUDIW
IXVHODJH DOLJQHG ZLWK WKH UXQZD\ FHQWHUOLQH
1RWH XVLQJ D FRPELQDWLRQ RI LQWRZLQG DLOHURQ DQG
RSSRVLWH UXGGHU WR FRUUHFW WKH GULIW
'U\ GDPS RU ZHW UXQZD\ LH OHVV WKDQ PP ZDWHU
GHSWK ZLWKRXW ULVN RI K\GURSODQLQJ
1RWH
5XQZD\ FRYHUHG ZLWK VOXVK
1RWH
5XQZD\ FRYHUHG ZLWK GU\ VQRZ
1RWH
5XQZD\ FRYHUHG ZLWK VWDQGLQJ ZDWHU ZLWK ULVN RI

K\GURSODQLQJ RU ZLWK ZHW VQRZ
1RWH
5XQZD\ ZLWK KLJK ULVN RI K\GURSODQLQJ
7KH PD[LPXP UHFRPPHQGHG FURVVZLQG RQ

D FRQWDPLQDWHG UXQZD\ LV EDVHG RQ FRPSXWDWLRQ
UDWKHU WKDQ IOLJKW WHVWV EXW WKH FDOFXODWHG YDOXHV DUH &UDEEHG $SSURDFK 6LGHVOLS $SSURDFK
DGMXVWHG LQ D FRQVHUYDWLYH PDQQHU EDVHG RQ
RSHUDWLRQDO H[SHULHQFH
6RPH RSHUDWRUV FRQVLGHU UHGXFHG PD[LPXP

)LJXUH
FURVVZLQG YDOXHV ZKHQ WKH ILUVW RIILFHU LV 3) GXULQJ &UDEEHG $SSURDFK YHUVXV 6LGHVOLS $SSURDFK
OLQH WUDLQLQJ DQG LQLWLDO OLQH RSHUDWLRQ
7KH PD[LPXP FURVVZLQG IRU SHUIRUPLQJ DQ DXWRODQG 7KLV %ULHILQJ 1RWH IRFXV RQ WKH ZLQJVOHYHO
LV D FHUWLILHG OLPLWDWLRQ FUDEEHG DSSURDFK WHFKQLTXH UHFRPPHQGHG E\
$LUEXV ,QGXVWULH WR GLVFXVV WKH DVVRFLDWHG IODUH DQG
$VVLJQPHQW E\ $7& RI D JLYHQ ODQGLQJ UXQZD\ GHFUDE WHFKQLTXHV GHSHQGLQJ RQ WKH FURVVZLQG
VKRXOG EH TXHVWLRQHG E\ WKH 3) LI SUHYDLOLQJ UXQZD\ FRPSRQHQW
FRQGLWLRQV DQG FURVVZLQG FRPSRQHQW DUH
FRQVLGHUHG LQDGHTXDWH IRU D VDIH ODQGLQJ
&URVVZLQG /DQGLQJV
3DJH
$LUIUDPH PDQXIDFWXUHUV FRQVLGHU WKH IROORZLQJ x %DQN DQJOH DW D JLYHQ FUDE DQJOH RU FUDE DQJOH
IDFWRUV ZKHQ UHFRPPHQGLQJ D ZLQJVOHYHO RU D DW D JLYHQ EDQN DQJOH
VWHDG\VLGHVOLS DSSURDFK
7KH JUDSK SURYLGHV WKH EDQN DQJOH FUDE
DQJOH UHODWLRQVKLS UHTXLUHG WR FRUUHFW WKH GULIW
x $LUFUDIW JHRPHWU\ LH SLWFK DWWLWXGH DQG EDQN
DQG WUDFN WKH UXQZD\ FHQWHUOLQH DW WKH ILQDO
DQJOH OLPLWV IRU SUHYHQWLQJ WDLO VWULNH HQJLQH
QDFHOOH FRQWDFW RU ZLQJWLS FRQWDFW
DSSURDFK VSHHG 9 $33 LQ D VWHDG\VLGH
VOLS FRQGLWLRQ
x $LOHURQV UROO DQG UXGGHU \DZ DXWKRULW\ DQG 3RVLWLYH FUDE DQJOHV UHIOHFW QRUPDO GULIW
FRUUHFWLRQV DQG VLGHVOLS FRQGLWLRQV LH ZLWK
x &URVVZLQG FRPSRQHQW WKH DLUFUDIW SRLQWLQJ LQWR ZLQG
1HJDWLYH FUDE DQJOHV UHVXOW IURP DQ

H[FHVVLYH UXGGHU FRUUHFWLRQ LH DLUFUDIW
)ODUH 7HFKQLTXH SRLQWLQJ DZD\ IURP ZLQG GLUHFWLRQ DQG
UHTXLUH D PRUHWKDQGHVLUHG EDQN DQJOH WR
$SSURDFKLQJ WKH IODUH SRLQW ZLWK ZLQJVOHYHO DQG ZLWK PDLQWDLQ D VWHDG\VLGHVOLS
D FUDE DQJOH DV UHTXLUHG IRU GULIW FRUUHFWLRQ WKUHH
IODUH WHFKQLTXHV DUH SRVVLEOH GHSHQGLQJ RQ UXQZD\
FRQGLWLRQ FURVVZLQG FRPSRQHQW DQG FRPSDQ\ x $LUFUDIW JHRPHWU\ OLPLWDWLRQ
623V
7KLV OLPLWDWLRQ UHIOHFWV WKH PD[LPXP SLWFK
DWWLWXGH DQGRU EDQN DQJOH WKDW FDQ EH
x $OLJQ WKH DLUFUDIW ZLWK WKH UXQZD\ FHQWHUOLQH DFKLHYHG ZLWKRXW LQFXUULQJ D WDLO VWULNH RU
ZKLOH SUHYHQWLQJ GULIWLQJ VLGHZD\V E\ DSSO\LQJ VFUDSSLQJ WKH HQJLQH QDFHOOH WKH IODSV RU
LQWRZLQG DLOHURQ DQG RSSRVLWH UXGGHU FURVV WKH ZLQJWLS DV DSSOLFDEOH
FRQWUROV
x $LOHURQV UXGGHU DXWKRULW\

x 3HUIRUP D SDUWLDO GHFUDE XVLQJ WKH FURVV
FRQWUROV WHFKQLTXH WR FRQWLQXH WUDFNLQJ WKH 7KLV OLPLWDWLRQ UHIOHFWV WKH DLUFUDIW PD[LPXP
UXQZD\ FHQWHUOLQH RU FDSDELOLW\ WR PDLQWDLQ D VWHDG\VLGHVOLS XQGHU
x 0DLQWDLQ WKH FUDE DQJOH IRU GULIW FRUUHFWLRQ XQWLO

PDLQODQGLQJJHDU WRXFKGRZQ )LJXUH DQG )LJXUH DVVXPH WKDW WKH DSSURDFK LV
VWDELOL]HG DQG WKDW WKH IODUH LV SHUIRUPHG DW D QRUPDO
KHLJKW DQG ZLWK D QRUPDO SLWFK UDWH
8QGHUVWDQGLQJ &URVVZLQG /DQGLQJ
/LPLWDWLRQV 7KHVH ILJXUHV PD\ QRW EH DYDLODEOH DQG SXEOLVKHG
IRU DOO DLUFUDIW W\SHV DQG PRGHOV EXW DOO DLUFUDIW DUH
7KH IROORZLQJ GLVFXVVLRQ RI IOLJKW G\QDPLFV FDQ VXEMHFW WR WKH VDPH EDVLF ODZV RI IOLJKW G\QDPLFV
SURYLGH DQ LQFUHDVHG XQGHUVWDQGLQJ RI WKH YDULRXV WKDW WKHVH ILJXUHV UHIOHFW
FURVVZLQG ODQGLQJ WHFKQLTXHV LH ILQDO DSSURDFK
IODUH DQG DOLJQ SKDVHV *HRPHWU\ OLPLWV XVXDOO\ DUH QRW D FRQFHUQ LQ KLJK
FURVVZLQGV DV WKH UROO DQG UXGGHU DXWKRULW\ LV
&URVVZLQG ODQGLQJ FDSDELOLW\ ± 'HVLJQ IDFWRUV UHDFKHG

RFFXUV
EHIRUH DQ\ DLUFUDIWWRJURXQG FRQWDFW
)LJXUHV DQG )LJXUH LOOXVWUDWH WKH OLPLWDWLRQV

7KLV DVVXPHV DFKLHYLQJ D VWHDG\ VLGHVOLS ZLWKRXW
LQYROYHG LQ FURVVZLQG ODQGLQJ IRU D JLYHQ VWHDG\
RYHUFRQWURO LH ZLWKRXW H[FHVVLYH UXGGHU DQG UROO
FURVVZLQG FRPSRQHQW
LQSXWV GXULQJ WKH GHFUDE DOLJQ SKDVH
&URVVZLQG /DQGLQJV
3DJH
&UDE $QJOH YHUVXV %DQN $QJOH

7\SLFDO 0D[LPXP /DQGLQJ :HLJKW /DQGLQJ &RQILJXUDWLRQ NW &URVVZLQG

3LWFK $WWLWXGH /LPLW
% 5ROO 5XGGHU /LPLW
;
&UDE $QJOH 'HJUHH
'HJUHH %DQN$QJOH
'HJUHH
$; 'HJUHH

'HJUHH

'HJUHH

'HJUHH

'HJUHH

9 $33
,QGLFDWHG $LUVSH HG NW
)LJXUH
&UDE $QJOH YHUVXV %DQN $QJOH

7\SLFDO 0D[LPXP /DQGLQJ :HLJKW /DQGLQJ &RQILJXUDWLRQ NW &URVVZLQG

% 3LWFK $WWLWXGH /LPLW
; 5ROO 5XGGHU /LPLW

'HJUHH %DQN$QJOH

'HJUHH

'HJUHH

&UDE $QJOH 'HJUHH
&; 'HJUHH
'HJUHH

'HJUHH
$; ;'
'HJUHH

9 $33
,QGLFDWH G $LUVSH H G NW
)LJXUH
&URVVZLQG /DQGLQJV
3DJH
)LJXUH VKRZV WKDW ZLWK D NW VWHDG\ FURVVZLQG 2SHUDWLRQDO UHFRPPHQGDWLRQV DQG KDQGOLQJ
FRPSRQHQW WHFKQLTXHV
x $FKLHYLQJ D VWHDG\ VLGHVOLS ODQGLQJ LH ZLWK
]HUR FUDE DQJOH UHTXLUHV RQO\ D GHJUHH )LJXUH DQG )LJXUH VKRZV WKDW
LQWRZLQJ EDQN DQJOH SRLQW $ SORWWHG RQ WKH
x :LWK ORZ FURVVZLQG W\SLFDOO\ XS WR NW WR NW
JUDSK RU
FURVVZLQG FRPSRQHQW D VDIH FURVVZLQG
ODQGLQJ LH IODUH DQG WRXFKGRZQ FDQ EH
x $FKLHYLQJ D ZLQJV OHYHO WRXFKGRZQ LH ZLWK QR
SHUIRUPHG ZLWK HLWKHU
GHFUDE RQO\ UHTXLUHV D GHJUHH WR GHJUHH
FUDE DQJOH DW WRXFKGRZQ SRLQW % $ VWHDG\VLGHVOLS LH QR FUDE DQJOH RU
$ VWHDG\VLGHVOLS ODQGLQJ FDQ EH SHUIRUPHG VDIHO\

:LQJVOHYHO ZLWK QR GHFUDE SULRU WR
WRXFKGRZQ
LH ZKLOH UHWDLQLQJ VLJQLILFDQW PDUJLQV UHODWLYH WR
JHRPHWU\ RU UROO UXGGHU OLPLWV
x :LWK KLJKHU FURVVZLQG W\SLFDOO\ DERYH NW WR
NW FURVVZLQG FRPSRQHQW D VDIH FURVVZLQG
)LJXUH VKRZV WKDW ZLWK D NW VWHDG\ FURVVZLQG
ODQGLQJ UHTXLUHV
FRPSRQHQW
x $FKLHYLQJ D VWHDG\VLGHVOLS ODQGLQJ LH ZLWK

D FUDEEHGDSSURDFK DQG
]HUR FUDE DQJOH UHTXLUHV QHDUO\ D GHJUHH LQWR D SDUWLDO GHFUDE SULRU WR WRXFKGRZQ XVLQJ
ZLQG EDQN DQJOH SODFLQJ WKH DLUFUDIW FORVHU WR LWV D FRPELQDWLRQ RI EDQN DQJOH DQG FUDE DQJOH
JHRPHWU\ DQG UROO U XGGHU OLPLWV SRLQW $ RQ WKH DFKLHYHG E\ DSSO\LQJ FURVVFRQWUROV
JUDSK RU
2Q PRVW $LUEXV PRGHOV WKLV UHTXLUHV WRXFKLQJ
GRZQ ZLWK
x $FKLHYLQJ D ZLQJVOHYHO WRXFKGRZQ LH ZLWK QR
GHFUDE ZRXOG UHVXOW LQ D GHJUHH FUDE DQJOH GHJUHHV RI FUDE DQJOH DQG
DW WRXFKGRZQ SRWHQWLDOO\ UHVXOWLQJ LQ ODQGLQJ
JHDU GDPDJH SRLQW % GHJUHHV RI EDQN DQJOH
:LWK NW FURVVZLQG DGRSWLQJ D FRPELQDWLRQ RI 7KH GHFLVLRQ WR SHUIRUP WKH IODUH ZLWK QR GHFUDE
VLGHVOLS DQG FUDEDQJOH LH PRYLQJ IURP SRLQW $ WR ZLWK SDUWLDO GHFUDE RU ZLWK FRPSOHWH GHFUDE VKRXOG
SRLQW & UHVWRUHV VLJQLILFDQW PDUJLQV UHODWLYH WR

GHSHQG XSRQ WKH SUHYDLOLQJ FURVVZLQG FRPSRQHQW
EXW DOVR RQ WKH IROORZLQJ IDFWRUV RU DV VSHFLILHG E\
JHRPHWU\ DQG UROO UXGGHU OLPLWV ZKLOH HOLPLQDWLQJ
FRPSDQ\¶ 623V
WKH ULVN RI ODQGLQJ JHDU GDPDJH 7KLV UHTXLUHV
W\SLFDOO\ x :LQG JXVWLQHVV
x GHJUHHV RI FUDE DQJOH DQG

x 5XQZD\ OHQJWK
x GHJUHHV RI EDQN DQJOH

x 5XQZD\ VXUIDFH FRQGLWLRQ
2Q DLUFUDIW PRGHOV OLPLWHG E\ WKHLU JHRPHWU\

x 7\SH RI DLUFUDIW DQG
FKDUDFWHULVWLFV LQFUHDVLQJ WKH ILQDO DSSURDFK VSHHG
LH E\ DSSO\LQJ D ZLQG FRUUHFWLRQ RQ WKH ILQDO
x 3LORW H[SHULHQFH RQ W\SH
DSSURDFK VSHHG HYHQ XQGHU IXOO FURVVZLQG WKXV
PRYLQJ IURP SRLQW $ WR SRLQW ' LQFUHDVHV WKH
PDUJLQ ZLWK UHVSHFW WR WKH JHRPHWU\ OLPLWDWLRQ
&URVVZLQG /DQGLQJV
3DJH
7RXFKGRZQ ± )ULFWLRQ )RUFHV )LJXUH LOOXVWUDWHV WKHVH IULFWLRQ IRUFHV

$VVXPLQJ D FUDEEHGDSSURDFK ZLWK QR GHFUDE RU
ZLWK SDUWLDO GHFUDE GXULQJ IODUH XSRQ WRXFKGRZQ WKH
IOLJKW VKRXOG EH RQ WKH XSZLQG VLGH RI WKH UXQZD\

$LUFUDIW PRWLRQ
FHQWHUOLQH WR HQVXUH WKDW WKH OHIW DQG ULJKW PDLQ
ODQGLQJ JHDUV DUH RQ WKHLU UHVSHFWLYH VLGHV RI
WKH UXQZD\ FHQWHUOLQH
&URVVZLQG
8SRQ WRXFKGRZQ RI WKH PDLQ ODQGLQJ JHDU WKH
DLUFUDIWWUDQVLWLRQV IURP WKH ³ ODZV RI IOLJKW 7LUH

G\QDPLFV ³ WR WKH ³ ODZV RI JURXQG G\QDPLFV ³ FRUQHULQJ IRUFH
7KH IROORZLQJ DUH DPRQJ WKH HYHQWV WKDW RFFXU XSRQ
WRXFKGRZQ
x :KHHO URWDWLRQ XQOHVV K\GURSODQLQJ LV
H[SHULHQFHG 7LUH
EUDNLQJ IRUFH
:KHHO URWDWLRQ LV WKH WULJJHU IRU
$XWRPDWLF JURXQG VSRLOHUV H[WHQVLRQ
$XWREUDNH RSHUDWLRQ DQG )LJXUH

$QWLVNLG RSHUDWLRQ
:KHHOVWLUHVEUDNLQJ IRUFHV DQG WLUHVFRUQHULQJ

7R PLQLPL]H WKH ULVN RI K\GURSODQLQJ DQG HQVXUH
IRUFHV GHSHQG RQ WKH WLUH DQG UXQZD\ FRQGLWLRQV
D SRVLWLYH VSLQ XS RI ZKHHOV LW LV UHFRPPHQGHG
EXW DOVR RQ HDFK RWKHU WKH KLJKHU WKH EUDNLQJ
WR SHUIRUP D ILUP WRXFKGRZQ ZKHQ ODQGLQJ RQ
IRUFH WKH ORZHU WKH FRUQHULQJ IRUFH DV LOOXVWUDWHG
D FRQWDPLQDWHG UXQZD\
E\ )LJXUH
x %XLOGXS RI IULFWLRQ IRUFHV EHWZHHQ WKH ZKHHO
WLUHV DQG WKH UXQZD\ VXUIDFH XQGHU WKH 7LUH %UDNLQJ DQG &RUQHULQJ )RUFHV
FRPELQHG HIIHFW RI
$QWLVNLG
:KHHOVWLUHVEUDNLQJ IRUFHV DQG

$FWLYDWLRQ
7LUHFRUQHULQJ IRUFHV

)RUFH
%UDNLQJ )RUFH

&RUQHULQJ )RUFH

)UHH UROOLQJ ZKHHO
6OLS 5DWLR
3KRWR FUHGLW 6H[WDQW $YLRQLFV )LJXUH
&URVVZLQG /DQGLQJV
3DJH
7UDQVLHQW HIIHFWV VXFK DV WKH GLVWRUWLRQ RI WKH WLUH (IIHFW RI )XVHODJH DQG )LQ 6LGH )RUFH
WKUHDG FDXVHG E\ DQ\ \DZLQJ PRYHPHQW RI WKH
ZKHHO RU WKH DFWLYDWLRQ RI WKH DQWLVNLG V\VWHP $V WKH DLUFUDIW WRXFKHV GRZQ WKH VLGH IRUFH FUHDWHG
DIIHFW WKH WLUHFRUQHULQJ DQG ZKHHOEUDNLQJ E\ WKH FURVVZLQG FRPSRQHQW RQ WKH IXVHODJH DQG ILQ
IRUFHV LQ ERWK PDJQLWXGH DQG GLUHFWLRQ DQG WHQGV WR PDNH WKH DLUFUDIW VNLG VLGHZD\V GRZQZLQG
WKXV DIIHFW WKH RYHUDOO EDODQFH RI IULFWLRQ IRUFHV RII WKH FHQWHUOLQH DV LOOXVWUDWHG E\ )LJXUH
$V D FRQVHTXHQFH WKH LGHDO EDODQFH RI IRUFHV

LOOXVWUDWHG E\ )LJXUH UDUHO\ LV VWHDGLO\ (IIHFW RI 7KUXVW 5HYHUVHUV
PDLQWDLQHG GXULQJ WKH LQLWLDO ODQGLQJ UROO
:KHQ VHOHFWLQJ UHYHUVH WKUXVW ZLWK VRPH FUDE

DQJOH WKH UHYHUVH WKUXVW UHVXOWV LQWR WZR IRUFH
(IIHFW RI 7RXFKGRZQ RQ $OLJQPHQW FRPSRQHQWV DV LOOXVWUDWHG E\ )LJXUH
:KHQ WRXFKLQJ GRZQ ZLWK VRPH FUDE DQJOH RQ D GU\ x $ VWRSSLQJ IRUFH DOLJQHG DORQJ WKH DLUFUDIW
UXQZD\ WKH DLUFUDIW DXWRPDWLFDOO\ UHDOLJQV ZLWK WKH GLUHFWLRQ RI WUDYHO UXQZD\ FHQWHUOLQH DQG
GLUHFWLRQ RI WUDYHO GRZQ WKH UXQZD\

x $ VLGH IRUFH SHUSHQGLFXODU WR WKH UXQZD\
FHQWHUOLQH ZKLFK IXUWKHU LQFUHDVHV WKH WHQGHQF\
2Q D FRQWDPLQDWHG UXQZD\ WKH DLUFUDIW WHQGV WR
WR VNLG VLGHZD\V
WUDYHO DORQJ WKH UXQZD\ FHQWHUOLQH ZLWK WKH H[LVWLQJ
FUDE DQJOH
&URVVZLQG
FRPSRQHQW
7RXFKGRZQ $LUFUDIW 5HYHUVH 5HYHUVH
ZLWK SDUWLDO VNLGGLQJ FDQFHOOHG WKUXVW DQG
GHFUDE VLGHZD\V DQG EUDNHV SHGDO
GXH WR UHOHDVHG EUDNLQJ
IXVHODJHILQ UHDSSOLHG
VLGH IRUFH 'LUHFWLRQDO
DQG UHYHUVH FRQWURO DQG
WKUXVW VLGH FHQWHUOLQH
IRUFH UHJDLQHG
)LJXUH
'LUHFWLRQDO &RQWURO GXULQJ &URVVZLQG /DQGLQJ
&URVVZLQG /DQGLQJV
3DJH
7KH WKUXVW UHYHUVHU HIIHFW GHFUHDVHV ZLWK 0DLQWDLQLQJ 5HJDLQLQJ 'LUHFWLRQDO &RQWURO
GHFUHDVLQJ DLUVSHHG
7KH KLJKHU WKH ZKHHOWLUH EUDNLQJ IRUFH WKH ORZHU

$V DLUVSHHG GHFUHDVHV WKH UXGGHU HIILFLHQF\ WKH WLUHFRUQHULQJ IRUFH WKHUHIRUH LI WKH DLUFUDIW
GHFUHDVHV DQG LV IXUWKHU DIIHFWHG E\ WKH DLUIORZ WHQGV WR VNLG VLGHZD\V UHOHDVLQJ WKH EUDNHV
GLVUXSWLRQ FUHDWHG LQ WKH ZDNH RI WKH HQJLQH UHYHUVH LH E\ WDNLQJ RYHU IURP WKH DXWREUDNH LQFUHDVHV
IORZ SRVVLEO\ UHVXOWLQJ LQ GLIILFXOWLHV WR PDLQWDLQ WKH WLUHFRUQHULQJ DQG FRQWULEXWHV WR PDLQWDLQLQJ RU
GLUHFWLRQDO FRQWURO UHJDLQLQJ GLUHFWLRQDO FRQWURO
6HOHFWLQJ UHYHUVH LGOH FDQFHOV WKH HIIHFWV RI UHYHUVH

(IIHFW RI %UDNLQJ WKUXVW LH WKH VLGH IRUFH DQG UXGGHU DLUIORZ
GLVUXSWLRQ DQG WKXV IXUWKHU DVVLVWV LQ UHJDLQLQJ
,Q D KLJK FURVVZLQG FURVVFRQWUROV PD\ KDYH WR EH GLUHFWLRQDO FRQWURO
PDLQWDLQHG DIWHU WRXFKGRZQ WR SUHYHQW WKH LQWRZLQG
ZLQJ IURP OLIWLQJ DQG WR FRXQWHUDFW WKH ZHDWKHUYDQH $IWHU GLUHFWLRQDO FRQWURO KDV EHHQ UHFRYHUHG DQG
HIIHFW VRPH IOLJKW FUHZ WUDLQLQJ PDQXDOV DGHTXDWHO\ WKH UXQZD\ FHQWHUOLQH KDV EHHQ UHJDLQHG
VWDWH WKDW WKH SLORW VKRXOG FRQWLQXH WR IO\ WKH DLUFUDIW
x 3HGDO EUDNLQJ FDQ EH DSSOLHG DXWREUDNH ZDV
GXULQJ WKH ODQGLQJ UROO
SUHYLRXVO\ GLVDUPHG ZKHQ WDNLQJ RYHU LQ D
V\PPHWULFDO RU GLIIHUHQWLDO PDQQHU DV UHTXLUHG
+RZHYHU LQWRZLQG DLOHURQ GHFUHDVHV WKH OLIW RQ WKH
DQG
LQWRZLQG ZLQJ WKXV UHVXOWLQJ LQ DQ LQFUHDVHG ORDG
RQ WKH LQWRZLQG ODQGLQJ JHDU
x 5HYHUVH WKUXVW FDQ EH UHVHOHFWHG
%HFDXVH WKH IULFWLRQ IRUFH LQFUHDVHV DV KLJKHU ORDGV

DUH DSSOLHG RQ WKH ZKHHOV DQG WLUHV WKH EUDNLQJ
IRUFH LQFUHDVHV RQ WKH LQWRZLQG ODQGLQJ JHDU 2SWLPXP %UDNLQJ
FUHDWLQJ DQ DGGLWLRQDO WHQGHQF\ WR WXUQ LQWRZLQG DV

LOOXVWUDWHG E\ )LJXUH 5HIHU WR %ULHILQJ 1RWH ² 2SWLPXP 8VH RI
%UDNLQJ 'HYLFHV
:KHQ WKH UXQZD\ FRQWDPLQDQW LV QRW HYHQO\
GLVWULEXWHG WKH DQWLVNLG V\VWHP PD\ UHOHDVH
WKH EUDNHV RQ RQH VLGH RQO\
)DFWRUV ,QYROYHG LQ &URVVZLQG/DQGLQJ
,QFLGHQWV DQG $FFLGHQWV
7KH IROORZLQJ IDFWRUV RIWHQ DUH LQYROYHG LQ

FURVVZLQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV
x 5HOXFWDQFH WR UHFRJQL]H FKDQJHV LQ ODQGLQJ

GDWD RYHU WLPH LH ZLQG GLUHFWLRQ VKLIW ZLQG
YHORFLW\ RU JXVW LQFUHDVH
x )DLOXUH WR VHHN DGGLWLRQDO HYLGHQFH WR FRQILUP

WKH LQLWLDO LQIRUPDWLRQ DQG LQLWLDO RSWLRQV
LH UHOXFWDQFH WR FKDQJH SUHHVWDEOLVKHG
SODQV
x 5HOXFWDQFH WR GLYHUW WR DQ DLUSRUW ZLWK OHVV

x /DFN RI WLPH WR REVHUYH HYDOXDWH DQG FRQWURO

WKH DLUFUDIW DWWLWXGH DQG IOLJKW SDWK LQ D KLJKO\
)LJXUH G\QDPLF VLWXDWLRQ
(IIHFW RI 8QHYHQ 0/* /RDGV RQ %UDNLQJ
&URVVZLQG /DQGLQJV
3DJH
x 'LIILFXOWLHV ZLWK SLWFKLQJ HIIHFW RI XQGHUZLQJ $VVRFLDWHG %ULHILQJ 1RWHV

PRXQWHG HQJLQHV LQ JXVW\ FRQGLWLRQV LH KHDG
RQ JXVW HIIHFW RQ LQGLFDWHG DLUVSHHG DQG SLWFK 7KH IROORZLQJ %ULHILQJ 1RWHV FRPSOHPHQW WKH DERYH
DWWLWXGH DQG LQIRUPDWLRQ DQG SURYLGH D FRPSUHKHQVLYH RYHUYLHZ
RI ODQGLQJ WHFKQLTXHV
x ,QHIIHFWLYH GLIIHUHQWLDO EUDNLQJ GXH WR WKH SDUWLDO
UHOHDVH RI WKH EUDNH SHGDO LH LI WKH EUDNH
² 3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG
SHGDO LV RQO\ SDUWLDOO\ UHOHDVHG WKH EUDNLQJ 2YHUUXQV
GHPDQG PD\ VWLOO H[FHHG WKH DQWLVNLG UHJXODWHG
SUHVVXUH DQG WKXV VWLOO SURGXFH D V\PPHWULFDO ² 7KH )LQDO $SSURDFK 6SHHG
EUDNLQJ DFWLRQ
² )DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFHV
6XPPDU\ RI .H\ 3RLQWV ² 2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

$GKHUHQFH WR WKH IROORZLQJ NH\ SRLQWV LQFUHDVHV
VDIHW\ GXULQJ FURVVZLQGODQGLQJ RSHUDWLRQV ² /DQGLQJ RQ :HW DQG &RQWDPLQDWHG
5XQZD\
x 8QGHUVWDQG DOO DSSOLFDEOH RSHUDWLQJ IDFWRUV
PD[LPXP UHFRPPHQGHG YDOXHV DQG OLPLWDWLRQV
² :KDW·V <RXU &XUUHQW :LQG "
x 8VH UHFRPPHQGHG DQG SXEOLVKHG IO\LQJ
WHFKQLTXHV DVVRFLDWHG ZLWK FURVVZLQG ODQGLQJ
1RWH
$ ZLQJVOHYHO WRXFKGRZQ LH ZLWKRXW DQ\

GHFUDE PD\ EH VDIHU WKDQ D VWHDG\VLGHVOLS
'RF
WRXFKGRZQ ZLWK DQ H[FHVVLYH EDQN DQJOH
x -$5236 DQG DVVRFLDWHG $SSHQGL[

x 5HTXHVW WKH DVVLJQPHQW RI D PRUH IDYRUDEOH
Q ± 2SHUDWLRQV PDQXDO ± VWUXFWXUH DQG
UXQZD\ LI SUHYDLOLQJ UXQZD\ FRQGLWLRQV DQG
FRQWHQWV
FURVVZLQG FRPSRQHQW DUH FRQVLGHUHG
LQDGHTXDWH IRU D VDIH ODQGLQJ
x $GDSW WKH DXWRSLORW GLVFRQQHFW DOWLWXGH WR

SUHYDLOLQJ FRQGLWLRQV LQ RUGHU WR KDYH WLPH WR
HVWDEOLVK PDQXDO FRQWURO DQG WULP WKH DLUFUDIW
FRQYHQWLRQDO DLUFUDIW PRGHOV EHIRUH WKH DOLJQ
GHFUDE SKDVH DQG IODUH
x %H DOHUW WR GHWHFW FKDQJHV LQ $7,6 DQG WRZHU

PHVVDJHV LH ZLQG GLUHFWLRQ VKLIW YHORFLW\
DQGRU JXVW LQFUHDVH DQG
x %HZDUH RI VPDOOVFDOH ORFDO HIIHFWV DVVRFLDWHG

ZLWK VWURQJ ZLQGV
8SGUDIWV DQG GRZQGUDIWV
9RUWLFHV FUHDWHG E\ EXLOGLQJV IRUHVWV RU

WHUUDLQ
&URVVZLQG /DQGLQJV
3DJH

$Ssurdfkdqg/Dqglqj $FFLGHQWV 5Hgxfwlrq: JHWWLQJWR Julsvzlwk

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

$Ssurdfkdqg/Dqglqj $FFLGHQWV 5Hgxfwlrq: JHWWLQJWR Julsvzlwk

Hochgeladen von

Copyright:

Verfügbare Formate

JHWWLQJWR

7KH EURFKXUH*HWWLQJ WR *ULSV ZLWK $SSURDFK x 3URYLGHV RU VXJJHVWV FRPSDQ\¶ DFFLGHQW

DQG /DQGLQJ $FFLGHQWV 5HGXFWLRQ SURYLGHV DQ SUHYHQWLRQVWUDWHJLHV DQGRU SHUVRQDO OLQHVRI

$OO UHDGHUV DUH HQFRXUDJHG WR VXEPLW WKHLU TXHVWLRQV

&XVWRPHU 6HUYLFHV 'LUHFWRUDWH

 %/$*1$& &HGH[ ± )5$1&(

7HOH[  $,5%8 )

7HOHID[     RU   

(PDLO  PLFKHOWUHPDXG # DLUEXVIU

)RUHZRUG   &UHZ &RRUGLQDWLRQ

  +XPDQ )DFWRUV LQ $SSURDFKDQG/DQGLQJ

  &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ

$/$5 7DVN )RUFH ± &RQFOXVLRQV DQG $FFLGHQWV

  ,QWUD&RFNSLW &RPPXQLFDWLRQV ± 0DQDJLQJ

*ORVVDU\ RI 7HUPV DQG $EEUHYLDWLRQV

  $OWLPHWHU 6HWWLQJ ± 8VH RI 5DGLR $OWLPHWHU

  $OWLWXGH GHYLDWLRQV

  6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V

  'HVFHQW DQG $SSURDFK 0DQDJHPHQW

  'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW

  2SWLPXP 8VH RI $XWRPDWLRQ

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV   $SSURDFK +D]DUGV $ZDUHQHVV  *HQHUDO

  7HUUDLQ $ZDUHQHVV

  9LVXDO ,OOXVLRQV $ZDUHQHVV

  :LQGVKHDU $ZDUHQHVV

  5HDGLQHVV DQG &RPPLWPHQW WR   /DQGLQJ 7HFKQLTXHV

  )O\LQJ D 0DQXDO *RDURXQG

  /DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\

  $ERXW :LQG ,QIRUPDWLRQ 

:KDW¶V \RXU &XUUHQW :LQG "

  )O\LQJ 6WDELOL]HG $SSURDFKHV   &URVVZLQG /DQGLQJ

  )O\LQJ &RQVWDQW$QJOH QRQ3UHFLVLRQ

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

  )O\LQJ 9LVXDO $SSURDFKHV

,QWURGXFWLRQ 7KH VFRSH RI WKLV EURFKXUH H[WHQGV EH\RQG

7KLV H[WHQGHG VFRSH DGGUHVVHV WKH W\SH RI HYHQWV

&RQFOXVLRQV DQG 5HFRPPHQGDWLRQV

7KH IROORZLQJ W\SHV RI HYHQWV DFFRXQW IRU   RI

x 5XQZD\ H[FXUVLRQ DQG

%ULHILQJ 1RWHV 6XPPDU\

2SHUDWLRQDO 5HFRPPHQGDWLRQV DQG x $SSURDFK DQG JRDURXQG EULHILQJV

*XLGHOLQHV x $OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV

%DVHG RQ WKH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI x 'HVFHQW SURILOH PDQDJHPHQW

RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ x $SSURDFK KD]DUGV DZDUHQHVV HJ YLVXDO

7KHVH UHFRPPHQGDWLRQV DQG JXLGHOLQHV VKRXOG EH x 5HDGLQHVV DQG FRPPLWPHQW WR JRDURXQG

  2SHUDWLQJ 3KLORVRSK\ x 8QGHUVWDQGLQJ WKH LQWHJUDWLRQ RI $3)' DQG

x 3URPRWH VWULFW DGKHUHQFH WR 623V DQG x 8QGHUVWDQGLQJ SLORWV\VWHP LQWHUIDFHV IRU

%ULHILQJ 1RWHV 6XPPDU\

7KH RSHUDWLRQV *ROGHQ 5XOHV GHILQHG E\ $LUEXV SURSRVHG

,QGXVWULH DVVLVW WUDLQHHV LQ PDLQWDLQLQJ WKHLU EDVLF

*HQHUDO *ROGHQ 5XOHV

x $XWRPDWHG DLUFUDIW FDQ EH IORZQ OLNH DQ\

6WDQGDUG &DOOV HQVXUH HIIHFWLYH LQWHUDFWLRQ DQG

x 2QH KHDG XS DW DOO WLPHV &DOOV  &RPPDQGV DQG 5HVSRQVHV 

x 8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU WKH

*ROGHQ 5XOHV IRU $EQRUPDO DQG (PHUJHQF\

x $VVHVV ULVNV DQG WLPH SUHVVXUHV

x $SSO\ UHFRPPHQGHG SURFHGXUHV DQG RWKHU

%ULHILQJ 1RWHV 6XPPDU\

x +LJKOLJKWHG DW DOO VWDJHV RI WUDQVLWLRQ WUDLQLQJ x (IIHFWLYH &50 SUDFWLFHV DQG

DXGLWV SHUIRUPHG GXULQJ OLQH RSHUDWLRQ

x 0LQLPXP VDIH DOWLWXGH &50 VNLOOV FRQWULEXWH WR

7KH EURFKXUHHWWLQJ WR ULSV ZLWK $SSURDFK x 3URYLGHV RU VXJJHVWV FRPSDQ\¶ DFFLGHQW

DQG /DQGLQJ $FFLGHQWV 5HGXFWLRQ SURYLGHV DQ SUHYHQWLRQVWUDWHJLHV DQGRU SHUVRQDO OLQHVRI

%/$*1$& &HGH[ ± )5$1&(

7HOH[ $,5%8 )

7HOHID[ RU

(PDLO PLFKHOWUHPDXG # DLUEXVIU

)RUHZRUG &UHZ &RRUGLQDWLRQ

+XPDQ )DFWRUV LQ $SSURDFKDQG/DQGLQJ

&50 ,VVXHV LQ $SSURDFKDQGODQGLQJ

,QWUD&RFNSLW &RPPXQLFDWLRQV ± 0DQDJLQJ

$OWLPHWHU 6HWWLQJ ± 8VH RI 5DGLR $OWLPHWHU

$OWLWXGH GHYLDWLRQV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V

'HVFHQW DQG $SSURDFK 0DQDJHPHQW

'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW

2SWLPXP 8VH RI $XWRPDWLRQ

2SHUDWLRQV *ROGHQ 5XOHV

6WDQGDUG &DOOV $SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO

7HUUDLQ $ZDUHQHVV

9LVXDO ,OOXVLRQV $ZDUHQHVV

:LQGVKHDU $ZDUHQHVV

5HDGLQHVV DQG &RPPLWPHQW WR /DQGLQJ 7HFKQLTXHV

)O\LQJ D 0DQXDO *RDURXQG

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\

$ERXW :LQG ,QIRUPDWLRQ

)O\LQJ 6WDELOL]HG $SSURDFKHV &URVVZLQG /DQGLQJ

)O\LQJ &RQVWDQW$QJOH QRQ3UHFLVLRQ

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

)O\LQJ 9LVXDO $SSURDFKHV

7KH IROORZLQJ W\SHV RI HYHQWV DFFRXQW IRU RI

x 5XQZD\ H[FXUVLRQ DQG

2SHUDWLRQDO 5HFRPPHQGDWLRQV DQG x $SSURDFK DQG JRDURXQG EULHILQJV

*XLGHOLQHV x $OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV

%DVHG RQ WKH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI x 'HVFHQW SURILOH PDQDJHPHQW

RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ x $SSURDFK KD]DUGV DZDUHQHVV HJ YLVXDO

7KHVH UHFRPPHQGDWLRQV DQG JXLGHOLQHV VKRXOG EH x 5HDGLQHVV DQG FRPPLWPHQW WR JRDURXQG

2SHUDWLQJ 3KLORVRSK\ x 8QGHUVWDQGLQJ WKH LQWHJUDWLRQ RI $3)' DQG

x 3URPRWH VWULFW DGKHUHQFH WR 623V DQG x 8QGHUVWDQGLQJ SLORWV\VWHP LQWHUIDFHV IRU

7KH RSHUDWLRQV *ROGHQ 5XOHV GHILQHG E\ $LUEXV SURSRVHG

HQHUDO ROGHQ 5XOHV

x 2QH KHDG XS DW DOO WLPHV &DOOV &RPPDQGV DQG 5HVSRQVHV

x $VVHVV ULVNV DQG WLPH SUHVVXUHV

x +LJKOLJKWHG DW DOO VWDJHV RI WUDQVLWLRQ WUDLQLQJ x (IIHFWLYH &50 SUDFWLFHV DQG

DXGLWV SHUIRUPHG GXULQJ OLQH RSHUDWLRQ

x 0LQLPXP VDIH DOWLWXGH &50 VNLOOV FRQWULEXWH WR

x $SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH

PXVW LQFOXGH ZKHQ LQ GRXEW

x 3UHYHQWLQJ VLPXOWDQHRXV WUDQVPLVVLRQV $OWLPHWHU DQG $OWLWXGH ,VVXHV

x $GDSWLQJ OLVWHQLQJ RI SDUW\OLQH FRPPXQLFDWLRQV

x 3LORWFRQWUROOHU RU LQWUDFRFNSLW FRPPXQLFDWLRQV x $ZDUHQHVV RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ

x (IIHFWLYH 3)31) FURVVFKHFN DQG EDFNXS

3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG XVH RI VWDQGE\DOWLPHWHU WR FURVVFKHFN PDLQ

6WULFW DGKHUHQFH WR WKH IROORZLQJ VWDQGDUGV LV WKH UDGLRDOWLPHWHU FDOORXWV DQG

x 2SHUDWLRQV *ROGHQ 5XOHV $OWLWXGH GHYLDWLRQV

3ULRULWL]H ± SODQ ± YHULI\

x $GKHUHQFH WR WKH SLORW FRQWUROOHU x 7LPHOLQHVV RI GHVFHQW DQG DSSURDFK

x 6HWWLQJ WKH DOWLPHWHUUHIHUHQFH RQ EDURPHWULF

(LWKHU D GHILFLW RI HQHUJ\ EHLQJ ORZ DQGRU VORZ RU

'HVFHQW DQG $SSURDFK 0DQDJHPHQW x /RVV RI FRQWURO

'HVFHQW DQG $SSURDFK 3URILOH x +DUG ODQGLQJ

,QDGHTXDWH PDQDJHPHQW RI GHVFHQWDQGDSSURDFK x 5XQZD\ H[FXUVLRQ DQGRU

x /RVV RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV DQGRU

$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO $SSURDFK FKDUWV

x )OLJKW FUHZ IDWLJXH

x $LUSRUW LQIRUPDWLRQ VHUYLFHV )OLJKW SURJUHVV PRQLWRULQJ

x 7HUUDLQ DQG PDQPDGH REVWDFOHV

x 5XQZD\ FRQGLWLRQ x 5HTXHVWLQJ FRQILUPDWLRQ RU FODULILFDWLRQ IURP

x %LUGVWULNH KD]DUGV $SSURDFK DQG JRDURXQG EULHILQJV

QDWXUH RI WKHVH KD]DUGV GXULQJ DSSURDFK DQG WHUUDLQDZDUHQHVVFULWLFDO LWHPV

7HUUDLQ $ZDUHQHVV

x 2WKHU KD]DUGV 6HH ² %HLQJ 3UHSDUHG IRU *RDURXQG

$ZDUHQHVV RI RWKHU DSSURDFK KD]DUGV DZDUHQHVV

DQG ² 9LVXDO ,OOXVLRQV $ZDUHQHVV

'HOD\LQJ WDNHRII RU DSSURDFK RU GLYHUWLQJ WR

KLVKHU H[SHFWDWLRQV %HLQJ SUHSDUHG DQG FRPPLWWHG IRU DQ

VSDWLDO GLVRULHQWDWLRQ DQG ORVV RI FRQWURO x 5HFRJQLWLRQ

%HLQJ DOHUW WR UHFRJQL]H SRWHQWLDO RU H[LVWLQJ

$YRLGLQJ ODUJH WKUXVW YDULDWLRQV RU WULP

5HDGLQHVV DQG &RPPLWPHQW WR 6WULFW DGKHUHQFH WR GHILQHG 3) 31) WDVN VKDULQJ

x (QVXUH WKDW SLORWV DUH SURILFLHQW LQ SHUIRUPLQJ WKH $SSURDFK 7HFKQLTXHV