Sei sulla pagina 1di 254

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

*HWWLQJ WR *ULSV ZLWK $SSURDFK


DQG /DQGLQJ $FFLGHQWV 5HGXFWLRQ SURYLGHV DQ
7KH EURFKXUH

LQYROYHG

LQ

GHIHQVH

VXJJHVWV

FRPSDQ\

DFFLGHQW

IRU

LQFLGHQWDFFLGHQW

SUHYHQWLRQ

SXUSRVHV DQGRU IRU FRUUHFWLRQ SXUSRVHV 

DSSURDFKDQGODQGLQJ

DFFLGHQWV

RU

SUHYHQWLRQVWUDWHJLHV DQGRU SHUVRQDO OLQHVRI

RYHUYLHZ RI WKH IO\LQJ WHFKQLTXHV DQG RSHUDWLRQDO


DVSHFWV

3URYLGHV

(VWDEOLVKHV

VXPPDU\

RI

RSHUDWLRQDO

DQG

WUDLQLQJ NH\ SRLQWV


7KH EURFKXUH FRQVLVWV RI D VHW RI $SSURDFKDQG
/DQGLQJ %ULHILQJ 1RWHV

3URYLGHV FURVVUHIHUHQFH WR WKH DVVRFLDWHG RU


UHODWHG %ULHILQJ 1RWHV DQG

(DFK %ULHILQJ 1RWH

5HIHUHQFHV WKH UHOHYDQW ,&$2 86 )$5 DQG

3UHVHQWV WKH VXEMHFW XVLQJ VWDWLVWLFDO GDWD

(PSKDVL]HV WKH DSSOLFDEOH VWDQGDUGV DQG EHVW

6KRXOG

SUDFWLFHV

LQIRUPDWLRQ

VWDQGDUG

VXSSOHPHQWDU\

RSHUDWLQJ

WHFKQLTXHV

(XURSHDQ -$5 GRFXPHQWV

SURFHGXUHV
RSHUDWLRQDO

UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV 

WR GHYLDWH IURP UHOHYDQW VWDQGDUGV IRU H\H


RSHQLQJ SXUSRVHV 

GHYLDWLRQ

SURYLGHG

DSSHDUV
WKLV

EHWZHHQ

EURFKXUH

DQG

WKH
WKDW

)OLJKW

&UHZ

2SHUDWLQJ

0DQXDO

)&20 

4XLFN 5HIHUHQFH +DQGERRN 45+ DQG )OLJKW &UHZ


7UDLQLQJ 0DQXDO )&70  WKH ODWWHU VKDOO SUHYDLO DW
DOO WLPHV

$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) $

LQ

SXEOLVKHG LQ WKH DSSOLFDEOH $LUSODQH )OLJKW 0DQXDO


$)0 

'LVFXVVHV WKH IDFWRUV WKDW PD\ OHDG IOLJKW FUHZV

DQ\

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7DEOHRI&RQWHQWV

)RUHZRUG

  &UHZ &RRUGLQDWLRQ
  +XPDQ )DFWRUV LQ $SSURDFKDQG/DQGLQJ
$FFLGHQWV

%ULHILQJ 1RWHV 6XPPDU\

  &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ


$FFLGHQWV

$/$5 7DVN )RUFH &RQFOXVLRQV DQG


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 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  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


  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

  7HUUDLQ $YRLGDQFH 3XOOXS 0DQHXYHU

  /DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\

  %RXQFH 5HFRYHU\ 5HMHFWHG /DQGLQJ

  $ERXW :LQG ,QIRUPDWLRQ 


:KDWV \RXU &XUUHQW :LQG "

  $SSURDFK 7HFKQLTXHV

  &URVVZLQG /DQGLQJ

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  )O\LQJ &RQVWDQW$QJOH QRQ3UHFLVLRQ


$SSURDFKHV

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

  )O\LQJ 9LVXDO $SSURDFKHV

7DEOH RI &RQWHQWV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

%ULHILQJ1RWHV6XPPDU\

7KH

,QWURGXFWLRQ

VFRSH

RI

WKLV

EURFKXUH

H[WHQGV

EH\RQG

DSSURDFKDQGODQGLQJ DFFLGHQWV E\ DGGUHVVLQJ

7KH EURFKXUH *HWWLQJ WR *ULSV ZLWK $SSURDFK


DQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ SURYLGHV
RSHUDWLRQDO

UHFRPPHQGDWLRQV

DQG

JXLGHOLQHV

WR

WKH IROORZLQJ LQWHUQDWLRQDO ZRUNLQJ JURXSV


)OLJKW

6DIHW\

)RXQGDWLRQ

$SSURDFKDQG/DQGLQJ

)6)

$FFLGHQWV

&),7

DQG

5HGXFWLRQ

$/$5 7DVN )RUFH DQG

LQ

DOO

SKDVHV

7HUUDLQ DZDUHQHVV LQ DOO IOLJKW SKDVHV

'HVFHQWDQGDSSURDFK SUHSDUDWLRQ

,QLWLDO GHVFHQW PDQDJHPHQW DQG

*RDURXQG DQG PLVVHGDSSURDFK

RI WRWDO KXOO ORVVHV

$/$5

&RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


2SHUDWLRQV DQG 7UDLQLQJ ,VVXHV

6WDWLVWLFDO 'DWD
$SSURDFKDQGODQGLQJ DFFLGHQWV LH DFFLGHQWV WKDW
LQLWLDO

DSSURDFK

7KH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI WKH )OLJKW

LQWHUPHGLDWH

6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH DUH DSSHQGHG

DSSURDFK ILQDO DSSURDFK RU ODQGLQJ UHSUHVHQW HYHU\

WR WKLV

\HDU   RI WRWDO KXOO ORVVHV DQG   RI IDWDOLWLHV

%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
WKH IOLJKW WLPH EXW   RI KXOO ORVVHV
7KH IROORZLQJ W\SHV RI HYHQWV DFFRXQW IRU   RI
DSSURDFKDQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV

6WDQGDUG RSHUDWLQJ SURFHGXUHV

'HFLVLRQPDNLQJ LQ WLPHFULWLFDO VLWXDWLRQV

'HFLVLRQ WR LQLWLDWH D JRDURXQG ZKHQ ZDUUDQWHG

5XVKHG DQG XQVWDELOL]HG DSSURDFKHV

3LORWFRQWUROOHU

&),7 LQFOXGLQJ ODQGLQJ VKRUW RI UXQZD\ 

/RVV RI FRQWURO

5XQZD\ RYHUUXQ

3LORWFRQWUROOHU FRPPXQLFDWLRQV

5XQZD\ H[FXUVLRQ DQG

$ZDUHQHVV

IOLJKW

DQG FDXVDO IDFWRUV LQYROYHG LQ DSSUR[LPDWHO\  

-RLQW 6DIHW\ ,PSOHPHQWDWLRQ 7HDP -6,7 IRU

GXULQJ

DZDUHQHVV

7KLV H[WHQGHG VFRSH DGGUHVVHV WKH W\SH RI HYHQWV

86 &RPPHUFLDO $YLDWLRQ 6DIHW\ 7HDP &$67

RFFXU

VKHDU

LQFOXGLQJ WDNHRII DQG ODQGLQJ

LPSOHPHQW WKH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI

:LQG

XQGHUVWDQGLQJ

RI

HDFK

RWKHU

RSHUDWLRQDO HQYLURQPHQW

RI

DSSURDFK

KD]DUGV

YLVXDO

LOOXVLRQV DGYHUVH ZLQG FRQGLWLRQV RU RSHUDWLRQV

1RQVWDELOL]HG DSSURDFKHV

RQ FRQWDPLQDWHG UXQZD\  DQG

7HUUDLQ DZDUHQHVV

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

2SHUDWLRQDO
*XLGHOLQHV

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HFRPPHQGDWLRQV

DQG

%DVHG RQ WKH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI


WKH )6) DQG &$67 ZRUNLQJ JURXSV $LUEXV ,QGXVWULH
KDV GHYHORSHG D VHW RI

%ULHILQJ 1RWHV
RSHUDWLRQDO
JXLGHOLQHV

$SSURDFKDQG/DQGLQJ

WR SURYLGH EDFNJURXQG LQIRUPDWLRQ

UHFRPPHQGDWLRQV
IRU

WKH

SUHYHQWLRQ

DQG
RI

WUDLQLQJ

DSSURDFKDQG

7KH $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV DGGUHVV


RSHUDWLRQDO

DQG

WUDLQLQJ

$SSURDFK DQG JRDURXQG EULHILQJV

$OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV

'HVFHQW SURILOH PDQDJHPHQW

(QHUJ\ PDQDJHPHQW GXULQJ DSSURDFK

7HUUDLQ DZDUHQHVV

$SSURDFK

/DQGLQJ

RYHUYLHZ

%ULHILQJ

RSHUDWLRQDO

RI

1RWHV

WKH

VXEMHFWV

WKH

DQG

(OHPHQWV RI D VWDELOL]HG DSSURDFK DQG DSSURDFK


JDWHV

PDLQ

WUDLQLQJ

LQFRUSRUDWLRQ

LQ

WKH

/DQGLQJ
W\SHV

SURFHGXUHV

DQG

WHFKQLTXHV

IRU

DQG

RI

EUDNLQJ

UXQZD\

WHFKQLTXHV

IRU

FRQWDPLQDQWV

YDULRXV

DQG

ZLQG

FRQGLWLRQV DQG

7KHVH UHFRPPHQGDWLRQV DQG JXLGHOLQHV VKRXOG EH


IRU

$SSURDFK

YDULRXV W\SHV RI DSSURDFKHV

JXLGHOLQHV DSSOLFDEOH IRU HDFK WKHPH DQG VXEMHFW

FRQVLGHUHG

YLVXDO

$SSURDFKDQG

KLJKOLJKWV

UHFRPPHQGDWLRQV

HJ

8VH RI UDGLR DOWLPHWHU

x
IROORZLQJ

DZDUHQHVV

JURXSHG LQWR HLJKW WKHPDWLF FKDSWHUV


7KH

KD]DUGV

LOOXVLRQV 

ODQGLQJ LQFLGHQWV DQG DFFLGHQWV

WKLUW\WKUHH

RSHUDWRUV

5HDGLQHVV
LH

RSHUDWLRQV PDQXDO DLUFUDIW RSHUDWLQJ PDQXDO DQG

DQG

FRPPLWPHQW

*3:67$:6

WR

ZDUQLQJ

JRDURXQG
XQVWDELOL]HG

DSSURDFK ERXQFH UHFRYHU\ 

WUDLQLQJ PDQXDO DQG HPSKDVL]HG GXULQJ WUDQVLWLRQ


WUDLQLQJ OLQH WUDLQLQJ UHFXUUHQW WUDLQLQJ OLQH FKHFNV

  2SWLPXP 8VH RI $XWRPDWLRQ

DQG OLQH DXGLWV

)RU DQ RSWLPXP XVH RI DXWRPDWLRQ WKH IROORZLQJ


VKRXOG EH SURPRWHG GXULQJ WUDQVLWLRQ WUDLQLQJ DQG

  6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V

UHFXUUHQW WUDLQLQJ

  2SHUDWLQJ 3KLORVRSK\

&RPSDQ\ SROLFLHV WHFKQLFDO DQG &50 WUDLQLQJ OLQH

8QGHUVWDQGLQJ

WKH

LQWHJUDWLRQ

RI

$3)'

DQG

$7+5 PRGHV LH SDLULQJ RI PRGHV 

FKHFNV DQG OLQH DXGLWV VKRXOG

8QGHUVWDQGLQJ DOO PRGH WUDQVLWLRQ DQG UHYHUVLRQ


VHTXHQFHV

3URPRWH VWULFW DGKHUHQFH WR 623V DQG

,GHQWLI\ DQG DGGUHVV WKH UHDVRQV IRU LQWHQWLRQDO

RU LQDGYHUWHQW GHYLDWLRQV IURP 623V


:LWKRXW VWULFW DGKHUHQFH WR 623V WKH

8QGHUVWDQGLQJ SLORWV\VWHP LQWHUIDFHV IRU


3LORWWRV\VWHP

FRPPXQLFDWLRQ

LH

IRU

PRGHV HQJDJHPHQW DQG WDUJHW VHOHFWLRQV 


DQG

HIIHFWLYH

LPSOHPHQWDWLRQ RI &50 SUDFWLFHV LV QRW SRVVLEOH

6\VWHPWRSLORW IHHGEDFN LH IRU PRGHV DQG


WDUJHWV FURVVFKHFN 

623V

VKRXOG

IUHTXHQWO\

HPSKDVL]H

LQYROYHG

WKH

LQ

IROORZLQJ

DVSHFWV

DSSURDFKDQGODQGLQJ

DQG

DFFLGHQWV

7DVN VKDULQJ

5XOHV IRU XVH RI DXWRPDWLRQ

6WDQGDUG FDOOV

8VH RI QRUPDO FKHFNOLVWV

$ZDUHQHVV RI DYDLODEOH JXLGDQFH LH $3)'


$7+5

HQJDJHPHQW

PRGHV

DUPHG

RU

HQJDJHG DQG VHOHFWHG WDUJHWV DV DQQXQFLDWHG


RQ 3)'  )0$ DQG VFDOHV  DQG RQ 1' 

$OHUWQHVV WR DGDSW WKH OHYHO RI DXWRPDWLRQ WR WKH


WDVN DQGRU FLUFXPVWDQFHV RU WR UHYHUW WR KDQG
IO\LQJ  PDQXDO WKUXVW FRQWURO LI UHTXLUHG DQG

$GKHUHQFH

WR

GHVLJQ

SKLORVRSK\ DQG 623V

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

SKLORVRSK\

RSHUDWLQJ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  2SHUDWLRQV *ROGHQ 5XOHV

7KH RSHUDWLRQV

,I RQO\ RQH OHVVRQ ZHUH WR EH OHDUQHG IURP WKH


SURSRVHG

*ROGHQ

VHW

RI

5XOHV

*ROGHQ

WKH

IROORZLQJ

LV

SURSRVHG

GHILQHG E\ $LUEXV

5XOHV

,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

$XWRPDWHG

DLUFUDIW

FDQ

EH

IORZQ

OLNH

  6WDQGDUG &DOOV

DQ\

RWKHU DLUFUDIW

6WDQGDUG

&DOOV

HQVXUH

DQG

WKDW RUGHU

HQKDQFH IOLJKW FUHZ VLWXDWLRQDO DZDUHQHVV


&DOOV

2QH KHDG XS DW DOO WLPHV

&RPPDQGV

DQG

DUH

RI

HTXDO

5HVSRQVHV
LPSRUWDQFH


WR

JXDUDQWHH D WLPHO\ DFWLRQ RU FRUUHFWLRQ

&URVV FKHFN WKH DFFXUDF\ RI WKH )06 ZLWK


UDZ GDWD

7KH XVH RI VWDQGDUG FDOOV DQG DFNQRZOHGJHPHQWV


UHGXFHV WKH ULVN RI WDFWLFDO VKRUWWHUP GHFLVLRQ

.QRZ \RXU )0$ >JXLGDQFH@ DW DOO WLPHV

:KHQ WKLQJV GRQW JR DV H[SHFWHG 7DNH 2YHU

8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU WKH

PDNLQJ HUURUV HJ LQ DUPLQJ RU HQJDJLQJ $3)'


PRGHV VHWWLQJ JXLGDQFH WDUJHWV RU VHOHFWLQJ DLUFUDIW
FRQILJXUDWLRQV 
8VH RI VWDQGDUG FDOOV LV RI SDUDPRXQW LPSRUWDQFH

WDVN DQG

LQWHUDFWLRQ

FRPPXQLFDWLRQ EHWZHHQ FUHZPHPEHUV DQG WKXV

$FNQRZOHGJHPHQWV

HIIHFWLYH

)O\ 1DYLJDWH &RPPXQLFDWH DQG 0DQDJH LQ

IRU RSWLPXP XVH RI DXWRPDWLRQ LH DZDUHQHVV RI


DUPLQJ RU HQJDJHPHQW RI PRGHV VHWWLQJ RI WDUJHWV

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

&RQGLWLRQV

GHILQLQJ

VWDQGDUG

FDOOV

VWDQGDUGL]DWLRQ

DFURVV IOHHWV DQG RSHUDWLRQDO HIILFLHQF\ VKRXOG EH

8QGHUVWDQG

WKH

SUHYDLOLQJ

FRQGLWLRQ

FDUHIXOO\ EDODQFHG

EHIRUH

DFWLQJ

  1RUPDO &KHFNOLVWV

$VVHVV ULVNV DQG WLPH SUHVVXUHV

5HYLHZ DQG HYDOXDWH WKH DYDLODEOH RSWLRQV

0DWFK WKH UHVSRQVH WR WKH VLWXDWLRQ

0DQDJH ZRUNORDG

&UHDWH

VKDUHG

,QLWLDWLQJ
WLPHO\

$SSO\

FRPSOHWLQJ
LV

WKH

QRUPDO

PRVW

FKHFNOLVWV

HIIHFWLYH

LQ

PHDQV

D
RI

SUHYHQWLQJ WKH RPLVVLRQ RI DFWLRQV RU SUHYHQWLQJ


LQDSSURSULDWH DFWLRQV
([SOLFLW FDOOV VKRXOG EH GHILQHG LQ WKH 623V IRU WKH

SUREOHP

PRGHO

ZLWK

LQWHUUXSWLRQ KROG DQG UHVXPSWLRQ FRQWLQXDWLRQ RI

RWKHU

D QRUPDO FKHFNOLVW LH LQ FDVH RI LQWHUUXSWLRQ RU

FUHZPHPEHUV E\ FRPPXQLFDWLQJ DQG

DQG

PDQQHU

UHFRPPHQGHG

SURFHGXUHV

DQG

GLVWUDFWLRQ 
RWKHU

DJUHHG DFWLRQV

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

'LVFLSOLQHG XVH RI QRUPDO FKHFNOLVWV VKRXOG EH

5REXVW VWDQGDUG RSHUDWLQJ SURFHGXUHV

(IIHFWLYH &50 SUDFWLFHV DQG

3HUVRQDO OLQHVRIGHIHQVH

+LJKOLJKWHG DW DOO VWDJHV RI WUDQVLWLRQ WUDLQLQJ


OLQH WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ DQG

(PSKDVL]HG DW WKH RSSRUWXQLW\ RI DOO FKHFNV DQG


DXGLWV SHUIRUPHG GXULQJ OLQH RSHUDWLRQ

  &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ


$FFLGHQWV

  $SSURDFK DQG *RDURXQG %ULHILQJV


7R

HQVXUH

PXWXDO

XQGHUVWDQGLQJ

DQG

&50 LVVXHV DUH LQYROYHG WR VRPH GHJUHH LQ HYHU\

HIIHFWLYH

LQFLGHQW

FRRSHUDWLRQ DPRQJ FUHZPHPEHUV DQG ZLWK $7& LQ


GHSWK DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH
FRQGXFWHG RQ HDFK IOLJKW

WR

WKH

FRQGLWLRQV

DSSURDFK

DQG

RI

WKH

IOLJKW

DSSURDFK

DQG

ODQGLQJ

HJ

DUHDV RI RSHUDWLRQ

VSHFLILF

&50 SUDFWLFHV RSWLPL]H WKH SHUIRUPDQFH RI WKH


JRDURXQG

EULHILQJV

HQWLUH FUHZ LH LQFOXGLQJ IOLJKW FUHZ DQG FDELQ

VKRXOG

FUHZ DQG PDLQWHQDQFH SHUVRQQHO 

0LQLPXP VDIH DOWLWXGH

&50 VNLOOV FRQWULEXWH WR

7HUUDLQ DQG PDQPDGH REVWDFOHV IHDWXUHV

:HDWKHU FRQGLWLRQV

5XQZD\ FRQGLWLRQ

2WKHU DSSURDFK KD]DUGV HJ WHUUDLQ YLVXDO

3URYLGH EHQFKPDUNV IRU WLPHO\ GHFLVLRQPDNLQJ


DQG

3URYLGH

VDIHJXDUGV

PDQDJHPHQW

WKXV

IRU

HIIHFWLYH

PLQLPL]LQJ

WKH

HUURU

HIIHFWV

RI

ZRUNLQJ HUURUV

$SSOLFDEOH PLQLPXPV YLVLELOLW\ RU 595 FHLOLQJ


DV DSSOLFDEOH 

5HOLHYH WKH HIIHFWV RI SUHVVXUHV LQWHUUXSWLRQV


DQG GLVWUDFWLRQV

LOOXVLRQV 

WR

VXFK DV PXOWLFXOWXUDO IOLJKW FUHZV DQGRU GLIIHUHQW

LQFOXGH WKH IROORZLQJ $/$5FULWLFDO LWHPV

QRQDGKHUHQFH

&50 WUDLQLQJ WR DFFRXQW IRU VSHFLILF UHTXLUHPHQWV

DQG

DSSURDFK KD]DUGV 
7KH

HJ

UHJXODWLRQV EXW DLUOLQHV VKRXOG FRQVLGHU DGGLWLRQDO

FRQFHQWUDWH RQ WKH LWHPV WKDW DUH UHOHYDQW IRU WKH


SDUWLFXODU

DFFLGHQW

7KH PLQLPXP FRQWHQW RI &50 WUDLQLQJ LV GHILQHG E\

7KH DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH


DGDSWHG

RU

SURFHGXUHV LQWHUDFWLRQ ZLWK DXWRPDWHG V\VWHPV 

$SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH 

  (IIHFWLYH 3LORW&RQWUROOHU &RPPXQLFDWLRQV

)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

*RDURXQG DOWLWXGH DQG PLVVHGDSSURDFK LQLWLDO

VWHSV

5HFRJQLWLRQ DQG XQGHUVWDQGLQJ RI SLORWV DQG


FRQWUROOHUV

UHVSHFWLYH

ZRUNLQJ

HQYLURQPHQWV

DQG FRQVWUDLQWV

  &UHZ &RRUGLQDWLRQ

  +XPDQ )DFWRUV LQ $SSURDFKDQG/DQGLQJ


$FFLGHQWV

'LVFLSOLQHG XVH RI VWDQGDUG SKUDVHRORJ\

6WULFW

DGKHUHQFH

WR

SLORW

FRQWUROOHU

FRPPXQLFDWLRQ ORRS SLORWV IHHGEDFN UHDGEDFN


 FRQWUROOHUV FRQILUPDWLRQ KHDUEDFN 

$GGUHVVLQJ +XPDQ )DFWRUV LVVXHV LQ DSSURDFKDQG

ODQGLQJ LQFLGHQWV DQG DFFLGHQWV LV DQ HIIRUW WKDW

$OHUWQHVV WR UHTXHVW FODULILFDWLRQ RU FRQILUPDWLRQ


ZKHQ LQ GRXEW

PXVW LQFOXGH

'HILQHG FRPSDQ\ VDIHW\ FXOWXUH DQG SROLFLHV

5HODWHG DFFLGHQWSUHYHQWLRQ VWUDWHJLHV

5HDGLQHVV WR TXHVWLRQ DQ LQFRUUHFW FOHDUDQFH RU


DQ LQDGHTXDWH LQVWUXFWLRQ

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

3UHYHQWLQJ VLPXOWDQHRXV WUDQVPLVVLRQV

  $OWLPHWHU DQG $OWLWXGH ,VVXHV

$GDSWLQJ OLVWHQLQJ RI SDUW\OLQH FRPPXQLFDWLRQV

  $OWLPHWHU 6HWWLQJ


8VH RI 5DGLR $OWLPHWHU

DV D IXQFWLRQ RI WKH IOLJKW SKDVH DQG

$GRSWLQJ

FOHDU

FRQFLVH

DQG

DGDSWHG

FRPPXQLFDWLRQV LQ DQ HPHUJHQF\ VLWXDWLRQ

$OWLPHWHUVHWWLQJ HUURUV UHVXOW LQ D ODFN RI YHUWLFDO


VLWXDWLRQDO

  ,QWUD&RFNSLW &RPPXQLFDWLRQV


0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV

EH

$ZDUHQHVV RI DOWLPHWHU VHWWLQJ FKDQJHV ZLWK


ZDUP

IURQWV

VWHHS

IURQWDO

VXUIDFHV

VHPL

SHUPDQHQW RU VHDVRQDO ORZ SUHVVXUH DUHDV 

,QWHUUXSWLRQV DQG GLVWUDFWLRQV XVXDOO\ UHVXOW IURP WKH


IROORZLQJ IDFWRUV

$ZDUHQHVV RI WKH DOWLPHWHUVHWWLQJ XQLW LQ XVH DW


WKH GHVWLQDWLRQ DLUSRUW

3LORWFRQWUROOHU RU LQWUDFRFNSLW FRPPXQLFDWLRQV


IOLJKW

FUHZ

FDELQ

FUHZ

HJ 0(7$5 DQG $7,6 PHVVDJHV 

+HDGGRZQ ZRUN RU

5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU WR DQ

(IIHFWLYH 3)31) FURVVFKHFN DQG EDFNXS

$GKHUHQFH WR 623V IRU


UHVHW RI EDURPHWULFDOWLPHWHUV LQ FOLPE DQG
GHVFHQW

3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG


PLQLPL]H

XQDQWLFLSDWHG VLWXDWLRQ

WR

$ZDUHQHVV RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ


XVLQJ WZR LQGHSHQGHQW VRXUFHV IRU FURVVFKHFN

FRPPXQLFDWLRQV 

GHYHORSHG

VKRXOG

SUHYDLOLQJ ZHDWKHU FRQGLWLRQV H[WUHPH FROG RU

ODQGLQJ DFFLGHQWV

EH

IROORZLQJ

UDGLRDOWLPHWHU '+

WKH PRVW IUHTXHQW FDXVDO IDFWRU LQ DSSURDFKDQG

LQFOXGLQJ

WKH

WR RSWLPL]H WKH XVH RI EDURPHWULFDOWLPHWHU EXJ DQG

2PLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ LV

DZDUHQHVV

HPSKDVL]HG WR PLQLPL]H DOWLPHWHUVHWWLQJ HUURUV DQG

LQWHUUXSWLRQV

XVH RI VWDQGE\DOWLPHWHU WR FURVVFKHFN PDLQ


DOWLPHWHUV

DQG

GLVWUDFWLRQV DQG WR OHVVHQ WKHLU FRQVHTXHQFHV


6WULFW DGKHUHQFH WR WKH IROORZLQJ VWDQGDUGV LV WKH
PRVW HIIHFWLYH SUHYHQWLRQ VWUDWHJ\

DOWLWXGH FDOORXWV

UDGLRDOWLPHWHU FDOORXWV DQG

VHWWLQJ RI EDURPHWULFDOWLPHWHU EXJ DQG UDGLR


DOWLPHWHU '+

623V

2SHUDWLRQV *ROGHQ 5XOHV

  $OWLWXGH GHYLDWLRQV

6WHULOHFRFNSLW UXOH DQG

$OWLWXGH GHYLDWLRQV PD\ UHVXOW LQ VXEVWDQWLDO ORVV RI

5HFRYHU\ WHFKQLTXHV VXFK DV

YHUWLFDO

,GHQWLI\ DVN GHFLGH DFW DQG

3ULRULWL]H SODQ YHULI\

VHSDUDWLRQ

DQGRU

KRUL]RQWDO

VHSDUDWLRQ

ZKLFK FRXOG FDXVH D PLGDLU FROOLVLRQ RU &),7


$Q DOWLWXGH DZDUHQHVV SURJUDP VKRXOG HQFRXUDJH
WKH EODPHIUHH UHSRUWLQJ RI DOWLWXGH GHYLDWLRQ HYHQWV
WR FRQWULEXWH WR D EHWWHU XQGHUVWDQGLQJ RI FDXVDO
IDFWRUV DQG FLUFXPVWDQWLDO IDFWRUV LQYROYHG LQ DOWLWXGH
GHYLDWLRQV

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH IROORZLQJ VDIHJXDUGV VKRXOG EH HPSKDVL]HG

7KH IROORZLQJ EHVW SUDFWLFHV VKRXOG EH SURPRWHG

$GKHUHQFH

WR

WKH

SLORW

FRQWUROOHU

FRPPXQLFDWLRQ ORRS LH UHDGEDFN  KHDUEDFN

&UHZ FURVVFKHFN DQG EDFNXS WR HQVXUH WKDW


WKH DOWLWXGH VHOHFWHG LH RQ WKH )&8 LV WKH

&URVVFKHFNLQJ

WKDW

WKH

DVVLJQHG

DOWLWXGH

LV

DZDUH

RI

WKH

DSSOLFDEOH

&URVVFKHFN

LV

RI

DOO

GDWD

HQWULHV

E\

ERWK

8VH RI 3)' 1' DQG )06 &'8 WR VXSSRUW DQG


LOOXVWUDWH WKH GHVFHQW DSSURDFK DQG JRDURXQG
EULHILQJV

PLQLPXP

&RQILUPDWLRQ

RI

)06

QDYLJDWLRQ

DFFXUDF\

EHIRUH GHILQLQJ WKH XVH RI DXWRPDWLRQ IRU WKH

0RQLWRULQJ LQVWUXPHQWV DQG DXWRPDWLRQ ZKHQ

GHVFHQW

UHDFKLQJ WKH DVVLJQHG DOWLWXGH RU )/ DQG

DSSURDFK

FUHZPHPEHUV

YHFWRULQJ DOWLWXGH IRU WKH VHFWRU 

DQG

6WULFW DGKHUHQFH WR 623V IRU )06 VHWXS

DERYH WKH VHFWRU PLQLPXP VDIH DOWLWXGH XQOHVV


FUHZ

GHVFHQW

DVVLJQHG DOWLWXGH LH UHFHLYHG IURP $7& 

RI

SUHSDUDWLRQ

SURFHVV

7LPHOLQHVV

DQG

DSSURDFK

LH

)06

PRGHV

RU

VHOHFWHG PRGHV 

,Q 90& DSSO\LQJ WKH WHFKQLTXH RQH KHDG LQVLGH

 RQH KHDG RXW ZKHQ DSSURDFKLQJ WKH FOHDUHG

5HYLHZ RI WHUUDLQ DZDUHQHVV GDWD DQG RWKHU


DSSURDFK KD]DUGV DQG

DOWLWXGH RU )/

8VH

RI

W\SLFDO

JXLGHOLQHV

IRU

GHVFHQWSURILOH

SODQQLQJ PRQLWRULQJ DQG DGMXVWPHQW

$OWLWXGH GHYLDWLRQV VKRXOG EH SUHYHQWHG E\ VWULFW


DGKHUHQFH WR DGHTXDWH 623V IRU

6HWWLQJ WKH DOWLPHWHUUHIHUHQFH RQ

  (QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK

EDURPHWULF

DOWLPHWHUV

,QDELOLW\ WR DVVHVV RU PDQDJH WKH DLUFUDIW HQHUJ\


OHYHO GXULQJ WKH DSSURDFK RIWHQ LV FLWHG DV D FDXVH

6HOHFWLQJ WKH DVVLJQHG  FOHDUHG DOWLWXGH RU )/

RI XQVWDELOL]HG DSSURDFKHV

RQ )&8 DQG

(LWKHU D GHILFLW RI HQHUJ\ EHLQJ ORZ DQGRU VORZ RU

$OWLWXGH FDOORXWV

DQ H[FHVV RI HQHUJ\ EHLQJ KLJK DQGRU IDVW PD\


UHVXOW LQ DSSURDFKDQGODQGLQJ DFFLGHQWV VXFK DV

  'HVFHQW DQG $SSURDFK 0DQDJHPHQW

  'HVFHQW DQG $SSURDFK 3URILOH


0DQDJHPHQW
,QDGHTXDWH PDQDJHPHQW RI GHVFHQWDQGDSSURDFK
SURILOH

DQGRU

LQFRUUHFW

PDQDJHPHQW

RI

DLUFUDIW

HQHUJ\ OHYHO GXULQJ DSSURDFK PD\ UHVXOW LQ

x
x

/RVV RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV DQGRU

/RVV RI FRQWURO

/DQGLQJ VKRUW

+DUG ODQGLQJ

7DLO VWULNH

5XQZD\ H[FXUVLRQ DQGRU

5XQZD\ RYHUUXQ

GHFHOHUDWLRQ

EHORZ

WKH

ILQDO

DSSURDFK

VSHHG

VKRXOG EH DFFHSWHG RQO\ LQ WKH IROORZLQJ FDVHV

5XVKHG DQG XQVWDELOL]HG DSSURDFKHV

(LWKHU VLWXDWLRQ LQFUHDVHV WKH ULVN RI DSSURDFKDQG


ODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH LQYROYLQJ D &),7

*3:67$:6 WHUUDLQ DYRLGDQFH PDQHXYHU

&ROOLVLRQ DYRLGDQFH PDQHXYHU DQG

:LQG VKHDU UHFRYHU\ DQG HVFDSH SURFHGXUH

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

1HYHUWKHOHVV LQ DOO WKUHH FDVHV WKH WKUXVW OHYHUV

:KHQ

PXVW EH DGYDQFHG WR WKH PD[LPXP WKUXVW LH JR

DZDUHQHVV "

DQG

KRZ

WR

EXLOG

DQG

PDLQWDLQ

WHUUDLQ

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


ODQGLQJ

KD]DUGV

VKRXOG

UHYLHZ

DQG

GLVFXVV

FKDUWV IHDWXULQJ WHUUDLQ ZLWK FRORUVKDGHG FRQWRXUV

WKH

IROORZLQJ IDFWRUV WKDW PD\ FRQWULEXWH WR DSSURDFK


DQGODQGLQJ DFFLGHQWV

$OWLPHWHUVHWWLQJ SURFHGXUHV

)OLJKW FUHZ IDWLJXH

7\SH RI DSSURDFK

$SSURDFK FKDUWV

$LUSRUW LQIRUPDWLRQ VHUYLFHV

)OLJKW SURJUHVV PRQLWRULQJ

$LUSRUW DLU WUDIILF FRQWURO VHUYLFHV

7KH

6HH



$OWLPHWHU

VHWWLQJ

8VH

RI

UDGLR

$OWLPHWHU

IROORZLQJ

EHVW

SUDFWLFHV

QHHG

WR

EH

HPSKDVL]HG

$LUSRUW HTXLSPHQW

7HUUDLQ DQG PDQPDGH REVWDFOHV

9LVXDO LOOXVLRQV

9LVLELOLW\

:LQG FRQGLWLRQV

5XQZD\ FRQGLWLRQ

0RQLWRULQJ DQG FURVVFKHFNLQJ )06 JXLGDQFH


DQG QDYLJDWLRQ DFFXUDF\

0RQLWRULQJ LQVWUXPHQWV DQG QDYDLGV UDZ GDWD

8VLQJ DOO DYDLODEOH LQIRUPDWLRQ DYDLODEOH FRFNSLW


GLVSOD\V QDYDLGV UDZ GDWD DQG FKDUWV  DQG

5XQZD\ DQG WD[LZD\V PDUNLQJV

/RZ WHPSHUDWXUH RSHUDWLRQ DQG

%LUGVWULNH KD]DUGV

5HTXHVWLQJ

FRQILUPDWLRQ

RU

FODULILFDWLRQ

IURP

$7& LI DQ\ GRXEW H[LVWV DERXW WHUUDLQ FOHDUDQFH


SDUWLFXODUO\ ZKHQ XQGHU UDGDU YHFWRUV

$SSURDFK DQG JRDURXQG EULHILQJV

)OLJKW FUHZV VKRXOG EH DZDUH RI WKH FRPSRXQGLQJ

$SSURDFK DQG JRDURXQG EULHILQJV VKRXOG LQFOXGH

QDWXUH

WHUUDLQDZDUHQHVVFULWLFDO LWHPV

RI

WKHVH

KD]DUGV

GXULQJ

DSSURDFK

DQG

ODQGLQJ
6HH

  7HUUDLQ $ZDUHQHVV


7HUUDLQ

DZDUHQHVV

LV

GHILQHG

 $SSURDFK DQG *RDURXQG %ULHILQJV

3UHSDUHGQHVV DQG FRPPLWPHQW IRU JRDURXQG


DV

WKH

FRPELQHG
*RDURXQG

DZDUHQHVV DQG NQRZOHGJH RI

LV

QRW

IUHTXHQW

RFFXUUHQFH

623V

VKRXOG VWUHVV WKH LPSRUWDQFH RI EHLQJ

$LUFUDIW SRVLWLRQ

$LUFUDIW DOWLWXGH

$SSOLFDEOH PLQLPXP VDIH DOWLWXGH 06$ 

7HUUDLQ ORFDWLRQ DQG IHDWXUHV DQG

2WKHU KD]DUGV

&RPPLWWHG

IRU

DQ

LPPHGLDWH

UHVSRQVH

WR

( *3:6  7$:6 ZDUQLQJV

3UHSDUHG DQG PLQGHG IRU D JRDURXQG ZKHQ


ZDUUDQWHG

6HH

 %HLQJ 3UHSDUHG IRU *RDURXQG

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&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

$OWLWXGH FDOOV

([FHVVLYHSDUDPHWHUGHYLDWLRQ FDOORXWV

7DVN VKDULQJ DQG VWDQGDUG FDOOV IRU DFTXLVLWLRQ

)OLJKW FUHZ DZDUHQHVV DQG DOHUWQHVV DUH NH\ IDFWRUV


LQ

VXFFHVVIXO

DSSOLFDWLRQ

RI

ZLQG

VKHDU

7KH IROORZLQJ UHFRPPHQGDWLRQV FDQ EH XVHG IRU WKH

RI YLVXDO UHIHUHQFHV DQG

WKH

DYRLGDQFH DQG UHFRYHU\ WHFKQLTXHV

GHYHORSPHQW RI FRPSDQ\ LQLWLDWLYHV HQKDQFLQJ ZLQG


VKHDU DZDUHQHVV

&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
DZDUHQHVV

$ZDUHQHVV RI RWKHU DSSURDFK KD]DUGV

6HH

 $SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO

$YRLGDQFH

DQG  9LVXDO ,OOXVLRQV $ZDUHQHVV

$VVHVVLQJ FRQGLWLRQV IRU D VDIH WDNHRII RU


DSSURDFKDQGODQGLQJ
DYDLODEOH

  9LVXDO ,OOXVLRQV $ZDUHQHVV





KLVKHU H[SHFWDWLRQV

'HOD\LQJ WDNHRII RU DSSURDFK RU GLYHUWLQJ WR

%HLQJ

SUHSDUHG

LPPHGLDWH
PD\

UHVXOW

LQ

ODQGLQJ

VKRUW

VSDWLDO GLVRULHQWDWLRQ DQG ORVV RI FRQWURO

FRPPLWWHG
WR

IRU

SUHGLFWLYH

DQ
RU

5HFRJQLWLRQ

7KH IROORZLQJ NH\ SRLQWV QHHG WR EH HPSKDVL]HG

%HLQJ DOHUW WR UHFRJQL]H SRWHQWLDO RU H[LVWLQJ


ZLQG

VKHDU

FRQGLWLRQV

EDVHG

RQ

DOO

DYDLODEOH ZHDWKHU GDWD RQERDUG HTXLSPHQW

$ZDUHQHVV RI ZHDWKHU IDFWRUV

$ZDUHQHVV RI VXUURXQGLQJ WHUUDLQ DQG REVWDFOHV

DQG PRQLWRULQJ RI DLUFUDIW IOLJKW SDUDPHWHUV


DQG IOLJKW SDWK DQG

$ZDUHQHVV

DQG

DVVHVVPHQW

RI

(QKDQFLQJ

LQVWUXPHQW

VFDQ

ZKHQHYHU

SRWHQWLDO ZLQG VKHDU LV VXVSHFWHG

DSSURDFK

KD]DUGV LH FRQGLWLRQV WKDW PD\ FDXVH YLVXDO

LOOXVLRQV VXFK DV EODFN KROH 

DQG

UHVSRQVH

UHDFWLYH ZLQG VKHDU ZDUQLQJ

KDUG

ODQGLQJ RU UXQZD\ RYHUUXQ EXW PD\ DOVR UHVXOW LQ

DOO
YLVXDO

D PRUH VXLWDEOH DLUSRUW DQG

WKH SLORWV SHUFHSWLRQ RI WKH HQYLURQPHQW UHODWLYH WR

LOOXVLRQV

RQ

GDWD

REVHUYDWLRQV DQG RQERDUG HTXLSPHQW

9LVXDO LOOXVLRQV WDNH SODFH ZKHQ FRQGLWLRQV PRGLI\

9LVXDO

EDVHG

PHWHRURORJLFDO

5HFRYHU\  (VFDSH

$YRLGLQJ

ODUJH

WKUXVW

YDULDWLRQV

RU

WULP

$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

)'

PRQLWRULQJ E\ 3) RI RXWVLGH YLVXDO FXHV ZKLOH

HVFDSH

JXLGDQFH

WUDQVLHQWO\ UHIHUULQJ WR LQVWUXPHQWV WR VXSSRUW

UHFRPPHQGHG )&20 $20 UHFRYHU\ DQG

DQG PRQLWRU WKH IOLJKW SDWK GXULQJ WKH YLVXDO

HVFDSH SURFHGXUH DQG

VHJPHQW DQG

ZLQG

VKHDU
RU

UHFRYHU\
DSSO\LQJ

3DJH 

WKH

0DNLQJ PD[LPXP XVH RI DLUFUDIW HTXLSPHQW


HJ IOLJKW SDWK YHFWRU DV DYDLODEOH 

%ULHILQJ 1RWHV 6XPPDU\

DQG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

6WULFW DGKHUHQFH WR GHILQHG 3)  31) WDVN VKDULQJ


DQG RSWLPXP XVH RI FUHZ UHVRXUFHV PDQDJHPHQW
DUH RI SDUDPRXQW LPSRUWDQFH GXULQJ D JRDURXQG
HJ IRU PRQLWRULQJ DQG FDOORXW RI DQ\ IOLJKW
SDUDPHWHU H[FHVVLYHGHYLDWLRQ
7KH PDQXDO JRDURXQG WHFKQLTXH PXVW
x 0LQLPL]H WKH LQLWLDO DOWLWXGH ORVV
x 3UHYHQW DQ H[FHVVLYH SLWFK DWWLWXGH E\ 
 IROORZLQJ )' SLWFK FRPPDQGV 656 RUGHUV 
QRW H[FHHGLQJ GHJUHHV SLWFK DWWLWXGH
 FRQVLGHULQJ D GHJUHH SLWFK DWWLWXGH DV DQ
XOWLPDWH EDUULHU IURP ZKLFK WKH SLORW VKRXOG
UHWXUQ LPPHGLDWHO\

  5HDGLQHVV DQG &RPPLWPHQW WR


*RDURXQG

  %HLQJ 3UHSDUHG WR *RDURXQG

)DLOXUH WR UHFRJQL]H WKH QHHG IRU DQGRU WR H[HFXWH


D JRDURXQG DQG PLVVHGDSSURDFK ZKHQ
DSSURSULDWH LV D PDMRU FDXVH RI DSSURDFKDQG
ODQGLQJ DFFLGHQWV
0RUH WKDQ   RI DSSURDFKDQGODQGLQJ DFFLGHQWV
FRQWDLQHG HOHPHQWV ZKLFK VKRXOG KDYH EHHQ
UHFRJQL]HG E\ WKH FUHZ DV LPSURSHU DQG ZKLFK
VKRXOG KDYH SURPSWHG D JRDURXQG
%HFDXVH D JRDURXQG LV QRW D IUHTXHQW RFFXUUHQFH
WKH LPSRUWDQFH RI EHLQJ JRDURXQGSUHSDUHG DQG
JRDURXQGPLQGHG VKRXOG EH HPSKDVL]HG
,I WKH FULWHULD IRU D VDIH FRQWLQXDWLRQ RI WKH DSSURDFK
DUH QRW PHW WKH FUHZ VKRXOG LQLWLDWH D JRDURXQG
DQG IO\ WKH SXEOLVKHG PLVVHGDSSURDFK

,I DQ\ ZDUQLQJ LV DFWLYDWHG RU LI DQ\ RWKHU DEQRUPDO


FRQGLWLRQ RFFXUV
x 3) PXVW FRQFHQWUDWH KLVKHU DWWHQWLRQ RQ IO\LQJ
WKH DLUFUDIW LH FRQWUROOLQJ DQG PRQLWRULQJ WKH
YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK  DQG
x 31) PXVW DQDO\]H WKH DEQRUPDO FRQGLWLRQ DQG
SHUIRUP WKH UHTXLUHG DFWLRQV DV SHU DSSOLFDEOH
WDVN VKDULQJ DQG (&$0 DQGRU 45+
SURFHGXUHV

  )O\LQJ D 0DQXDO *RDURXQG

$ VDIH JRDURXQG VKRXOG SULRULWL]H WKH HOHPHQWV RI


WKH IROORZLQJ 3V UXOH 
x 3LWFK 
 (VWDEOLVKLQJ DQG PDLQWDLQLQJ WKH WDUJHW SLWFK
DWWLWXGH
x 3RZHU 
 6HWWLQJ JRDURXQG WKUXVW DQG FKHFNLQJ WKDW
WKH UHTXLUHG WKUXVW LV DFKLHYHG DQG
x 3HUIRUPDQFH 
 &RQILUPLQJ DLUFUDIW SHUIRUPDQFH
SRVLWLYH UDWH RI FOLPE
JHDU XS
VSHHG DW RU DERYH 9 $33 9 /6 
VSHHG EUDNHV UHWUDFWHG
IODSV DV UHTXLUHG
UDGLRDOWLPHWHU
DQG EDURDOWLPHWHU
LQGLFDWLRQV LQFUHDVLQJ DQG
ZLQJVOHYHO

  7HUUDLQ $YRLGDQFH 3XOOXS 0DQHXYHU

&),7 HYHQWV DFFRXQW IRU DSSUR[LPDWHO\   RI DOO


DSSURDFKDQGODQGLQJ DFFLGHQWV DQG DUH WKH OHDGLQJ
FDXVH RI IDWDOLWLHV
$ W\SLFDO DZDUHQHVV DQG WUDLQLQJ SURJUDP IRU WKH
UHGXFWLRQ RI FRQWUROOHGIOLJKWLQWRWHUUDLQ &),7
VKRXOG
x (GXFDWH SLORWV RQ IDFWRUV WKDW PD\ FDXVH &),7
x (QVXUH WKDW KRUL]RQWDO DQG YHUWLFDO VLWXDWLRQDO
DZDUHQHVV DUH PDLQWDLQHG DW DOO WLPHV
x (QVXUH WKDW SLORWV DFKLHYH SURILFLHQF\ LQ WKH
H[HFXWLRQ RI SURFHGXUHV DQG WHFKQLTXHV
UHFRPPHQGHG IRU HDFK W\SH RI DSSURDFK
x 3URYLGH SLORWV ZLWK DQ DGHTXDWH NQRZOHGJH RI WKH
FDSDELOLW\ DQG OLPLWDWLRQV RI *3:6 RU (*3:6 
7$:6 HTXLSPHQW LQVWDOOHG RQ WKHLU DLUFUDIW DQG

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  $SSURDFK 7HFKQLTXHV

(QVXUH WKDW SLORWV DUH SURILFLHQW LQ SHUIRUPLQJ WKH


WHUUDLQ DYRLGDQFH PDQHXYHU UHTXLUHG LQ UHVSRQVH

  )O\LQJ 6WDELOL]HG $SSURDFKHV

WR D *3:6 RU (*3:6  7$:6 ZDUQLQJ DV


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

ODQGLQJ DFFLGHQWV

&),7

DZDUHQHVV

DQG

UHVSRQVH

WR

( *3:6  7$:6 ZDUQLQJV


5XVKHG DSSURDFKHV UHVXOW LQ LQVXIILFLHQW WLPH IRU WKH

3UHYHQWLYH

DFWLRQV

VKRXOG

EH

LGHDOO\

IOLJKW FUHZ WR FRUUHFWO\

WDNHQ

EHIRUH ( *3:6  7$:6 ZDUQLQJ

3ODQ

5HVSRQVH E\ 3) PXVW EH LPPHGLDWH

3UHSDUH DQG

31) PXVW PRQLWRU DQG FDOO WKH UDGLR DOWLWXGH DQG

([HFXWH D VDIH DSSURDFK

DOWLWXGH WUHQG WKURXJKRXW WKH WHUUDLQ DYRLGDQFH


7KH IROORZLQJ GHILQHV WKH HOHPHQWV RI D VWDELOL]HG

PDQHXYHU DQG

DSSURDFK

3XOOXS PDQHXYHU PXVW EH FRQWLQXHG DW PD[LPXP

FOLPE SHUIRUPDQFH XQWLO ZDUQLQJ KDV FHDVHG DQG

DQG

WHUUDLQ LV FOHDUHG LH DV LQGLFDWHG E\ D VWHDGLO\

ODQGLQJ

LV

GHILQHG

DV

x
PDLQ

ODQGLQJ JHDU RU DIWHU ERXQFLQJ


$

UHMHFWHG

ODQGLQJ

LV

FKDOOHQJLQJ

SDWK

EDVHG

RQ

QDYDLGV

2QO\ VPDOO FKDQJHV LQ KHDGLQJ DQG SLWFK DUH

7KH

DLUFUDIW

LV

LQ

WKH

GHVLUHG

ODQGLQJ

FRQILJXUDWLRQ

JRDURXQG

PDQHXYHU LQLWLDWHG DIWHU WRXFKGRZQ RI WKH

IOLJKW

UHTXLUHG WR PDLQWDLQ WKLV IOLJKW SDWK

  %RXQFH 5HFRYHU\ 5HMHFWHG /DQGLQJ


UHMHFWHG

YHUWLFDO

JXLGDQFH RU YLVXDO UHIHUHQFHV 

LQFUHDVLQJ UDGLRDOWLPHWHU UHDGLQJ 

7KH DLUFUDIW LV RQ WKH FRUUHFW ODWHUDO IOLJKW SDWK

7KH

SRZHU

LV

VWDELOL]HG

DQG

WKH

DLUFUDIW

LV

WULPPHG WR PDLQWDLQ WKH WDUJHW ILQDO DSSURDFK


VSHHG RQ WKH GHVLUHG JOLGH SDWK

PDQHXYHU

GHFLGHG DQG FRQGXFWHG LQ DQ XQDQWLFLSDWHG DQG


XQSUHSDUHG PDQQHU

7KH ODQGLQJ FKHFNOLVW KDV EHHQ DFFRPSOLVKHG


DV ZHOO DV DQ\ UHTXLUHG VSHFLILF EULHILQJ DQG

7KH 623V VKRXOG GHILQH WKH UHVSHFWLYH GHFLVLRQ

1R

IOLJKW

SDUDPHWHU

H[FHHGV

WKH

OLPLWV

DSSOLFDEOH IRU WKH W\SH RI DSSURDFK

FULWHULD IRU

7KHVH OLPLWV DOVR GHILQH WKH FULWHULD IRU IOLJKW

)XOOVWRS ODQGLQJ RU

5HMHFWHG ODQGLQJ DQG JRDURXQG

SDUDPHWHUV H[FHVVLYHGHYLDWLRQ FDOORXWV

7KUHH HVVHQWLDO SDUDPHWHUV QHHG WR EH VWDELOL]HG IRU


D VDIH ILQDO DSSURDFK LQFOXGLQJ WKH YLVXDO VHJPHQW 

3URFHGXUHV DQG WHFKQLTXHV VKRXOG EH SXEOLVKHG IRU


ERXQFH UHFRYHU\ LQFOXGLQJ

&RQWLQXHG ODQGLQJ RU

5HMHFWHG ODQGLQJ LH JRDURXQG 

$LUFUDIW WUDFN

)OLJKW SDWK DQJOH DQG

$LUVSHHG

'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

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

:KHQ WUDQVLWLRQLQJ WR YLVXDO UHIHUHQFHV WKH SLORWV


SHUFHSWLRQ RI WKH UXQZD\ DQG RXWVLGH HQYLURQPHQW

VKRXOG EH NHSW FRQVWDQW E\ PDLQWDLQLQJ WKH

'ULIW FRUUHFWLRQ WR FRQWLQXH WUDFNLQJ WKH UXQZD\


FHQWHUOLQH

LH

UHVLVWLQJ

WKH

WHQGHQF\

WR

SUHPDWXUHO\ DOLJQ WKH DLUFUDIW ZLWK WKH UXQZD\

$FTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG GHFLVLRQ


1RW GHVFHQGLQJ EHORZ WKH 0'$ + EHIRUH
UHDFKLQJ WKH YLVXDO GHVFHQWGHFLVLRQ SRLQW
9'3  DQG
3UHSDUHGQHVV IRU JRDURXQG

FHQWHUOLQH 

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

$LPLQJ SRLQW WR UHPDLQ RQ WKH FRUUHFW IOLJKW SDWK

7KH WUDQVLWLRQ IURP LQVWUXPHQW UHIHUHQFHV WR YLVXDO


UHIHUHQFHV LV DQ LPSRUWDQW HOHPHQW RI DQ\ W\SH RI
LQVWUXPHQW DSSURDFK
9DULDWLRQV H[LVW LQ DLUOLQH RSHUDWLQJ SKLORVRSKLHV
DERXW 3)31) WDVN VKDULQJ IRU
x $FTXLVLWLRQ RI YLVXDO UHIHUHQFHV
x &RQGXFW RI ODQGLQJ DQG
x &RQGXFW RI JRDURXQG

XQWLO WKH IODUH KHLJKW LH UHVLVWLQJ WKH WHQGHQF\


WR

PRYH

WKH

DLPLQJ

SRLQW

FORVHU

DQG

WKXV

GHVFHQG EHORZ WKH GHVLUHG JOLGH SDWK  GXFN


XQGHU  DQG
)LQDO DSSURDFK VSHHG DQG JURXQG VSHHG WR
PDLQWDLQ WKH DLUFUDIW HQHUJ\ OHYHO

  )O\LQJ &RQVWDQW$QJOH QRQ3UHFLVLRQ


$SSURDFKHV

$OPRVW   RI &),7 LQFLGHQWV DQG DFFLGHQWV RFFXU


GXULQJ VWHSGRZQ QRQSUHFLVLRQ DSSURDFKHV
7KH FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFK
WHFKQLTXH RU &$13$ VKRXOG EH LPSOHPHQWHG DQG
WUDLQHG ZRUOGZLGH IRU SUHYHQWLQJ &),7 DQG RWKHU
DSSURDFKDQGODQGLQJ DFFLGHQWV
7KH IROORZLQJ DVSHFWV QHHG WR EH VWUHVVHG
x &ULWHULD IRU GHWHUPLQLQJ WKH W\SH RI JXLGDQFH WR
EH XVHG
x )06 SUHSDUDWLRQ DV DSSOLFDEOH
x &RPSOHWHQHVV RI DSSURDFK EULHILQJ
x 3ODQQLQJ RI DLUFUDIW FRQILJXUDWLRQ VHWXS
x 'HVFHQW PRQLWRULQJ
x (QHUJ\ PDQDJHPHQW GXULQJ LQLWLDO DSSURDFK
LQWHUPHGLDWH DSSURDFK DQG ILQDO DSSURDFK
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
x &RPPHQFLQJ WKH GHVFHQW DW WKH H[DFW SRLQW
x 0DLQWDLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH RU
YHUWLFDO VSHHG GXULQJ WKH ILQDO GHVFHQW
LQFOXGLQJ WKH YLVXDO VHJPHQW 

7DVN VKDULQJ IRU WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV


GHSHQGV RQ
x 7KH W\SH RI DSSURDFK LH RQ WKH WLPH DYDLODEOH
IRU WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV  DQG
x 7KH XVH RI DXWRPDWLRQ LH RQ WKH OHYHO RI
DXWRPDWLRQ DQG UHGXQGDQF\ 
7KH $LUEXV ,QGXVWULH RSHUDWLQJ SKLORVRSK\ DQG
WUDLQLQJ SKLORVRSK\ SURPRWH D 3)31) WDVN VKDULQJ
ZLWK DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV E\
x 31) IRU QRQSUHFLVLRQ DSSURDFKHV DQG &$7 ,
,/6 DSSURDFKHV DQG
x 3) IRU &$7 ,,  &$7 ,,, ,/6 DSSURDFKHV
)RU &$7 ,,  &$7 ,,, RSHUDWLRQV WKH &$37 XVXDOO\ LV
WKH 3) DQG RQO\ DQ DXWRPDWLF DSSURDFK DQG ODQGLQJ
LV FRQVLGHUHG
  )O\LQJ 9LVXDO $SSURDFKHV

$FFHSWLQJ DQ $7& UHTXHVW IRU D YLVXDO DSSURDFK RU


UHTXHVWLQJ D YLVXDO DSSURDFK VKRXOG EH FDUHIXOO\
EDODQFHG DJDLQVW WKH IROORZLQJ GHFLVLRQ FULWHULD
x &HLOLQJ DQG YLVLELOLW\ FRQGLWLRQV
x 'DUNQHVV

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

:HDWKHU

ZLQG WXUEXOHQFH

UDLQ VKRZHUV DQGRU

IRJ RU VPRNH SDWFKHV

&UHZ

H[SHULHQFH

ZLWK

DLUSRUW

DQG

  /DQGLQJ 7HFKQLTXHV

DLUSRUW

HQYLURQPHQW

VXUURXQGLQJ WHUUDLQ DQGRU

VSHFLILF

DLUSRUW

DQG

  3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG


2YHUUXQV
UXQZD\

KD]DUGV

5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV DFFRXQW


UHVSHFWLYHO\ IRU   DQG   RI DOO DSSURDFKDQG
ODQGLQJ DFFLGHQWV
5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV FDQ EH
FDWHJRUL]HG LQWR VL[ IDPLOLHV RI HYHQWV GHSHQGLQJ RQ
WKHLU SULPDU\ FDXVDO IDFWRU DV IROORZV
x (YHQWV UHVXOWLQJ IURP DQ XQVWDELOL]HG DSSURDFK
x (YHQW UHVXOWLQJ IURP DQ LQFRUUHFW IODUH
WHFKQLTXH
x (YHQWV UHVXOWLQJ IURP XQDQWLFLSDWHG RU PRUH
VHYHUHWKDQH[SHFWHG DGYHUVH ZHDWKHU
FRQGLWLRQV HJ WDLO ZLQG FURVVZLQG RU ZLQG
VKHDU 
x (YHQWV UHVXOWLQJ IURP UHGXFHG RU ORVV RI EUDNLQJ
HIILFLHQF\
x (YHQWV
UHVXOWLQJ IURP DQ DEQRUPDO
FRQILJXUDWLRQ LQFOXGLQJ
 DLUFUDIW GLVSDWFK XQGHU PLQLPXP HTXLSPHQW
OLVW >0(/@  GLVSDWFK GHYLDWLRQ JXLGH >''*@
RU
 LQIOLJKW PDOIXQFWLRQ DQG
x (YHQWV UHVXOWLQJ IURP LQFRUUHFW FUHZ DFWLRQ RU
LQDGHTXDWH FUHZ FRRUGLQDWLRQ XQGHU DGYHUVH
WHFKQLFDO RU ZHDWKHU FRQGLWLRQV

REVWUXFWLRQV 

5XQZD\ YLVXDO DLGV




3HUIRUPLQJ DOWLWXGH DQG H[FHVVLYHSDUDPHWHUV


GHYLDWLRQ FDOORXWV DQG
&RPSO\LQJ ZLWK JRDURXQG SROLF\ DV IRU
LQVWUXPHQW DSSURDFKHV

7\SH RI DSSURDFK OLJKWLQJ V\VWHP DQG

$YDLODELOLW\ RI D 9$6, RU 3$3,

7KH IROORZLQJ NH\ SRLQWV VKRXOG EH GLVFXVVHG GXULQJ


IOLJKW FUHZ WUDLQLQJ IRU VDIH YLVXDO DSSURDFKHV
x $VVHVVLQJ WKH FRPSDQ\ H[SRVXUH LH
RSHUDWLQJ HQYLURQPHQW 
x 'HYHORSLQJ FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG
SHUVRQDO OLQHVRIGHIHQVH
x :HLJKLQJ WKH WLPH VDYHG DJDLQVW WKH SRVVLEOH
ULVN
x $ZDUHQHVV RI DQG DFFRXQWLQJ IRU ZHDWKHU
IDFWRUV
x $ZDUHQHVV RI VXUURXQGLQJ WHUUDLQ DQG REVWDFOHV
x $ZDUHQHVV RI DLUSRUW HQYLURQPHQW DLUSRUW DQG
UXQZD\ KD]DUGV
x 8VH RI D SXEOLVKHG YLVXDO DSSURDFK FKDUW RU XVH
RI D YLVXDO FLUFXLW SDWWHUQ
x 7XQLQJ DQG PRQLWRULQJ DOO DYDLODEOH QDYDLGV
x 8VH RI DXWRPDWLRQ ZLWK WLPHO\ UHYHUVLRQ WR KDQG
IO\LQJ
x $GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ
 3) VKRXOG IO\ WKH DLUFUDIW DQG ORRN RXWVLGH
LH EHLQJ KHDG XS  ZKLOH
 31) VKRXOG PRQLWRU LQVWUXPHQWV LH EHLQJ
KHDG GRZQ 
x 0DLQWDLQLQJ YLVXDO FRQWDFW ZLWK UXQZD\ DQG RWKHU
WUDIILF DW DOO WLPHV

&RPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG LQGLYLGXDO OLQHV


RIGHIHQVH VKRXOG EH GHYHORSHG EDVHG RQ
x 6WULFW DGKHUHQFH WR 623V
x (QKDQFHG DZDUHQHVV RI HQYLURQPHQWDO IDFWRUV
x (QKDQFHG
XQGHUVWDQGLQJ RI DLUFUDIW
SHUIRUPDQFH DQG KDQGOLQJ WHFKQLTXHV DQG

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

(QKDQFHG DOHUWQHVV IRU

IOLJKWSDUDPHWHUV PRQLWRULQJ

H[FHVVLYHGHYLDWLRQ FDOORXWV DQG

IROORZLQJ DVSHFWV PXVW EH XQGHUVWRRG

PXWXDO FURVVFKHFN DQG EDFNXS

'HVLJQ DQG RSHUDWLRQ RI HDFK EUDNLQJ GHYLFH

'LVWULEXWLRQ RI VWRSSLQJ IRUFHV GXULQJ ODQGLQJ

7R HQVXUH DQ RSWLPXP XVH RI EUDNLQJ GHYLFHV WKH

  7KH )LQDO $SSURDFK 6SHHG


$VVXULQJ

VDIH

ODQGLQJ

UROO

UHTXLUHV

DFKLHYLQJ

VWRSSLQJ GLVWDQFH

EDODQFHG GLVWULEXWLRQ RI VDIHW\ PDUJLQV EHWZHHQ

7KH FRPSXWHG ILQDO DSSURDFK VSHHG  DQG

7KH UHVXOWLQJ ODQGLQJ GLVWDQFH

7KH DSSOLFDEOH )&20 DQG 45+ SURYLGH


5HIHUHQFH DSSURDFK VSHHGV DQG

6SHHG

FRUUHFWLRQV

DSSOLFDEOH

DIIHFWLQJ

WR

WKH

IROORZLQJ

RSHUDWLRQDO

JXLGHOLQHV

HQVXUHV DQ RSWLPXP EUDNLQJ GXULQJ WKH ODQGLQJ UROO


IRU

YDULRXV

$UPLQJ JURXQG VSRLOHUV

$UPLQJ
PRGH

  )DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


IDFWRUV

$SSOLFDEOH RSHUDWLRQDO JXLGHOLQHV

$GKHULQJ

RSHUDWLRQDO IDFWRUV DQG DLUFUDIW FRQILJXUDWLRQV

8QGHUVWDQGLQJ

)DFWRUV DIIHFWLQJ WKH RSWLPXP XVH RI EUDNLQJ


GHYLFHV DQG

7\SH RI EUDNLQJ UHTXLUHG WR DFKLHYH WKH GHVLUHG

ODQGLQJ

DXWREUDNH
IRU

ZLWK

SUHYDLOLQJ

WKH

PRVW

FRQGLWLRQV

DSSURSULDWH
HJ

VKRUW

UXQZD\ ORZ YLVLELOLW\ FRQWDPLQDWHG UXQZD\ 

GLVWDQFH

FRQWULEXWHV WR SUHYHQWLQJ UXQZD\ RYHUUXQ HYHQWV

6HOHFWLQJ WKUXVW UHYHUVHUV DV VRRQ DV SRVVLEOH


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+

'LVSDWFK

FRQGLWLRQV

DV

DSSOLFDEOH

GLVSDWFK

GHYLDWLRQ JXLGH >''*@ 


,QIOLJKW IDLOXUHV DV DSSOLFDEOH

:HDWKHU FRQGLWLRQV HJ LFLQJ FRQGLWLRQVLFH

0RQLWRULQJ DQG FDOOLQJ DXWREUDNH RSHUDWLRQ

%HLQJ

UHDG\

WR

WDNH

RYHU

IURP

DXWREUDNH

0RQLWRULQJ HQJLQH RSHUDWLRQ LQ UHYHUVH WKUXVW

$LUILHOG HOHYDWLRQ

5XQZD\ VORSH LI GRZQ KLOO 

5XQZD\

FRQGLWLRQ

DLUVSHHG

LQGLFDWLRQ

DQG

UHWXUQLQJ

SXEOLVKHG LQGLFDWHG DLUVSHHG RU ZKHQ DLUVSHHG

QDWXUH

IOXFWXDWLRQV RFFXU ZKLFKHYHU FRPH ILUVW


DQG

GHSWK

RI

FRQWDPLQDQW  DQG
EUDNLQJ

0RQLWRULQJ

UHYHUVH OHYHUV WR WKH UHYHUVH LGOH SRVLWLRQ DW WKH

RI

VSRLOHUV

HJ LQFUHDVLQJ (*7 HYLGHQFH RI VXUJH 

:LQG FRQGLWLRQV LH ZLQG FRPSRQHQW DQG JXVW

8VH

JURXQG

VXVSHFWHG ZLQG VKHDU 

FDOOLQJ

LI UHTXLUHG

DFFUHWLRQ 

DQG

H[WHQVLRQ

XQGHU PLQLPXP HTXLSPHQW OLVW >0(/@  GLVSDWFK

0RQLWRULQJ

GHYLFHV

WKUXVW

UHYHUVHUV

,I UHTXLUHG XVLQJ PD[LPXP SHGDO EUDNLQJ DQG

0DLQWDLQLQJ EUDNLQJ DFWLRQ XQWLO DVVXUHG WKDW WKH


DLUFUDIW ZLOO VWRS ZLWKLQ WKH UHPDLQLQJ UXQZD\

DXWREUDNH 

OHQJWK

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  /DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\

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

LQGLFDWLQJ WKDW WKH VHOHFWHG GHFHOHUDWLRQ UDWH LV

ZLWK

VWDQGLQJ

ZDWHU

DFKLHYHG PD\ QRW LOOXPLQDWH 

VOXVK VQRZ RU LFH VKRXOG EH DVVHVVHG FDUHIXOO\


EHIRUH EHJLQQLQJ WKH DSSURDFK

GHOD\ WR

7KH IROORZLQJ RSHUDWLRQDO UHFRPPHQGDWLRQV QHHG WR

EH HPSKDVL]HG

'LYHUVLRQ

WR

DQ

DLUSRUW

ZLWK

EHWWHU

/RZHULQJ WKH QRVH ODQGLQJ JHDU ZLWKRXW XQGXH

LQFUHDVH WKH ZHLJKWRQZKHHOV DQG WKXV


LQFUHDVH WKH EUDNLQJ HIILFLHQF\ DQG

UXQZD\

FRQGLWLRQV DQGRU OHVV FURVVZLQG FRPSRQHQW

DFWLYDWH

V\VWHPV

ZKHQ DFWXDO FRQGLWLRQV VLJQLILFDQWO\ GLIIHU IURP

ODQGLQJ

JHDU

IRUHFDVW

UHIHUHQFH VSHHG 

FRQGLWLRQV

RU

LQ

FDVH

RI

V\VWHP

DVVRFLDWHG

VZLWFKHV

ZLWK

HJ

QRVH

DQWLVNLG

PDOIXQFWLRQ

$QWLFLSDWLQJ

DV\PPHWU\

HIIHFWV

WKDW

ZRXOG

FURVVZLQG

$YRLGLQJ

VLQJOHWKUXVWUHYHUVHU

ODQGLQJ

RQ

FRQWDPLQDWHG

RYHU

QRUPDOO\

IURP
ZLWK

)RU GLUHFWLRQDO FRQWURO XVLQJ UXGGHU SHGDOV DQG

,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


VLGH DQG

)&20 DQG 45+ IRU LQIOLJKW PDOIXQFWLRQV


RU

WDNLQJ

EUDNHV

QRVHZKHHOVWHHULQJ WLOOHU 

)RU LQRSHUDWLYH LWHPV DIIHFWLQJ WKH EUDNLQJ RU OLIW

ZKHQ

GLIIHUHQWLDO EUDNLQJ DV UHTXLUHG LH QRW XVLQJ

UXQZD\

ZLWKRXW DQWLVNLG RU ZLWK D VLQJOH WKUXVW UHYHUVHU

RU

DSSO\LQJ

VWHDG\ SUHVVXUH

RSHUDWLRQ 

UHTXLUHG

DXWREUDNH

SUHYHQW HIILFLHQW EUDNLQJ RU GLUHFWLRQDO FRQWURO


HJ

$V

$IWHU UHDFKLQJ WD[L VSHHG XVLQJ QRVHZKHHO


VWHHULQJ ZLWK FDUH

0LQLPXP (TXLSPHQW /LVW 0(/ RU 'LVSDWFK


'HYLDWLRQ *XLGH ''*  IRU NQRZQ GLVSDWFK
FRQGLWLRQV

6HOHFWLQJ

 8VH RI :LQG ,QIRUPDWLRQ

DXWREUDNH

ZLWK

PHGLXP

RU

ORZ
6HYHUDO VRXUFHV RI ZLQG LQIRUPDWLRQ DUH DYDLODEOH WR

VHWWLQJ LI WKH FRQWDPLQDQW LV HYHQO\ GLVWULEXWHG


2Q FRQWDPLQDWHG UXQZD\ XVH RI D
VHWWLQJ

XVXDOO\

LV

UHFRPPHQGHG

WKH IOLJKW FUHZ

PHGLXP

WR

DVVXUH

LPPHGLDWH EUDNLQJ DFWLRQ DIWHU WRXFKGRZQ LH


ZLWKRXW WLPH GHOD\ 

$SSURDFKLQJ RQ JOLGH SDWK DQG DW WKH WDUJHW ILQDO

$LPLQJ IRU WKH WRXFKGRZQ ]RQH

3HUIRUPLQJ

ILUP
DQG

WRXFKGRZQ
HQVXUH

WR

8VLQJ

URWDWLRQ

PD[LPXP

UHYHUVH

WKUXVW

SRVVLEOH DIWHU WRXFKGRZQ DV

RI

PDLQ

DV

WKUXVW

VRRQ

ZLQG

LQIRUPDWLRQ

PXVW

EH

XQGHUVWRRG

IRU

7KH 0(7$5 ZLQG LV D PLQXWH DYHUDJH ZLQG

7KH $7,6 RU WRZHU DYHUDJH ZLQG LV D PLQXWH


DYHUDJH ZLQG

DV

UHYHUVHU

HIILFLHQF\ LV KLJKHU DW KLJK VSHHG 

$LUFUDIW V\VWHPV LH ,56 DQG )06 ZLQGV 

7KH IROORZLQJ IDFWV DQG ILJXUHV VKRXOG EH UHFDOOHG

SUHYHQW

ODQGLQJ JHDU ZKHHOV 

DSSURSULDWH XVH GXULQJ YDULRXV IOLJKW SKDVHV

K\GURSODQLQJ

$7& LH 0(7$5 $7,6 DQG WRZHU ZLQGV  DQG

(DFK

DSSURDFK VSHHG

7KH $7,6 RU WRZHU JXVW LV WKH ZLQG SHDN YDOXH


GXULQJ WKH ODVW PLQXWH SHULRG

&RQILUPLQJ WKH H[WHQVLRQ RI JURXQG VSRLOHUV

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

RYHU D PLQXWH WLPH SHULRG

IURP

LQVWDQWZLQG

WKH

VKRXOG

$7&
EH

WKH

XVHG

SKUDVHRORJ\

LQ

WKH

UHTXHVW

UHFRPPHQGHG

DQG

SXEOLVKHG

IO\LQJ

ZLQJVOHYHO

WRXFKGRZQ

LH

ZLWKRXW

DQ\

GHFUDE PD\ EH VDIHU WKDQ D VWHDG\VLGHVOLS


WRXFKGRZQ ZLWK DQ H[FHVVLYH EDQN DQJOH

7KH ,56 ZLQG LV D QHDUUHDOWLPH ZLQG


7KH )06 ZLQG LV D VHFRQGDYHUDJH ZLQG

DQG
7KH

8VLQJ

ZLQG FRQGLWLRQV 

IDFWRUV

1RWH 

ZLWKRXW UHTXHVW XQGHU VKLIWLQJ DQGRU JXVWLQJ

RSHUDWLQJ

WHFKQLTXHV DVVRFLDWHG ZLWK FURVVZLQG ODQGLQJ

VRPH FRQWUROOHUV PD\ SURYLGH VXFK LQVWDQWZLQG

DSSOLFDEOH

PD[LPXP UHFRPPHQGHG YDOXHV DQG OLPLWDWLRQV

,I DQ LQVWDQWDQHRXV ZLQG UHDGLQJ LV GHVLUHG DQG


UHTXHVWHG

8QGHUVWDQGLQJ

5HTXHVWLQJ WKH DVVLJQPHQW RI D PRUH IDYRUDEOH


UXQZD\

PD[LPXP

GHPRQVWUDWHG

LI

SUHYDLOLQJ

FURVVZLQG

FURVVZLQG

UXQZD\

FRPSRQHQW

FRQGLWLRQV

DUH

DQG

FRQVLGHUHG

LQDGHTXDWH IRU D VDIH ODQGLQJ

JHQHUDOO\ DSSOLHV WR D VWHDG\ ZLQG DQG LV QRW D


OLPLWDWLRQ XQOHVV RWKHUZLVH VWDWHG 

$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

%HLQJ DOHUW WR GHWHFW FKDQJHV LQ $7,6 DQG WRZHU


PHVVDJHV ZLQG GLUHFWLRQ VKLIW YHORFLW\ DQGRU
JXVW LQFUHDVH  DQG

  &URVVZLQG /DQGLQJ

%HLQJ

DZDUH

RI

VPDOOVFDOH

2SHUDWLRQV LQ FURVVZLQG FRQGLWLRQV UHTXLUH VWULFW

DVVRFLDWHG ZLWK VWURQJ ZLQGV

DGKHUHQFH WR DSSOLFDEOH

UHFRPPHQGHG

OLPLWDWLRQV

FURVVZLQG

UHFRPPHQGDWLRQV

DQG

RU

YDOXHV

PD[LPXP
RSHUDWLRQDO

KDQGOLQJ

HIIHFWV

8SGUDIWV DQG GRZQGUDIWV

WHFKQLTXHV

ORFDO

9RUWLFHV

FUHDWHG

E\

EXLOGLQJV

IRUHVWV

RU

WHUUDLQ

SDUWLFXODUO\ ZKHQ RSHUDWLQJ RQ ZHW RU FRQWDPLQDWHG


UXQZD\V

$SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV

$SSURDFKLQJ WKH IODUH SRLQW ZLWK ZLQJVOHYHO DQG D


FUDE DQJOH DV UHTXLUHG IRU GULIW FRUUHFWLRQ WKUHH
IODUH WHFKQLTXHV DUH SRVVLEOH GHSHQGLQJ RQ UXQZD\

7KH

FRQGLWLRQ

$SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV DUH GHVFULEHG

FURVVZLQG

FRPSRQHQW

DQG

FRPSDQ\

623V 

VFRSH

LQ WKH FKDSWHU

$OLJQ WKH DLUFUDIW ZLWK WKH UXQZD\ FHQWHUOLQH


ZKLOH SUHYHQWLQJ GULIWLQJ VLGHZD\V E\ DSSO\LQJ
LQWRZLQG DLOHURQ DQG RSSRVLWH UXGGHU LH XVLQJ
FURVVFRQWUROV 

3HUIRUP

FRQWUROV

WHFKQLTXH

SDUWLDO

GHFUDE
WR

XVLQJ

FRQWLQXH

WKH

FURVV

WUDFNLQJ

WKH

UXQZD\ FHQWHUOLQH RU

VWUXFWXUH

0DLQWDLQ WKH FUDE DQJOH IRU GULIW FRUUHFWLRQ DQG


ZLQJVOHYHO

XQWLO

WKH

PDLQ

ODQGLQJ

JHDU

WRXFKGRZQ

%ULHILQJ 1RWHV 6XPPDU\


3DJH 

DQG

VXJJHVWHG

XVH

RI

,QWURGXFLQJ WKH %ULHILQJ 1RWHV

WKH

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ5HGXFWLRQ7DVN)RUFH

&RQFOXVLRQVDQG5HFRPPHQGDWLRQV
7KH IOLJKW VHJPHQW IURP WKH RXWHU PDUNHU WR WKH
FRPSOHWLRQ RI WKH ODQGLQJ UROO UHSUHVHQWV RQO\   RI
WKH IOLJKW WLPH EXW   RI KXOO ORVVHV
7KHVH VWDWLVWLFDO GDWD KDYH QRW VKRZQ DQ\ GRZQ
WUHQG RYHU WKH SDVW  \HDUV
)LYH W\SHV RI HYHQWV DFFRXQW IRU   RI DSSURDFK
DQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV
x &),7 LQFOXGLQJ ODQGLQJ VKRUW RI UXQZD\ 
x /RVV RI FRQWURO
x 5XQZD\ RYHUUXQ
x 5XQZD\ H[FXUVLRQ DQG
x 8QVWDELOL]HG DSSURDFKHV

,QWURGXFWLRQ
7KLV

VXPPDU\

UHFRPPHQGDWLRQV
DQG/DQGLQJ

SUHVHQWV
RI

WKH

$FFLGHQW

WKH

FRQFOXVLRQV

LQWHUQDWLRQDO

5HGXFWLRQ

DQG

$SSURDFK

$/$5

7DVN

)RUFH OHG E\ WKH )OLJKW 6DIHW\ )RXQGDWLRQ )6) 

%DFNJURXQG
7KH )6) $/$5 7DVN )RUFH ZDV FUHDWHG LQ  DV
DQRWKHU SKDVH RI WKH &RQWUROOHG )OLJKW ,QWR 7HUUDLQ
&),7 DFFLGHQW UHGXFWLRQ SURJUDP ODXQFKHG LQ WKH
HDUO\ V
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 
7KH 7DVN )RUFH GHYHORSHG FRQFOXVLRQV DQG
UHFRPPHQGDWLRQV IRU SUDFWLFHV WKDW ZRXOG LPSURYH
VDIHW\ LQ DSSURDFKDQGODQGLQJ LQ WKH IROORZLQJ
GRPDLQV
x $LU 7UDIILF &RQWURO  7UDLQLQJ DQG 3URFHGXUHV
x $LUSRUW )DFLOLWLHV
x $LUFUDIW HTXLSPHQW DQG
x $LUFUDIW 2SHUDWLRQV DQG 7UDLQLQJ

,PSOHPHQWDWLRQ

7KH FRQFOXVLRQV DQG UHFRPPHQGDWLRQV RI WKH $/$5


7DVN )RUFH QHHG WR EH WUDQVODWHG LQWR LQGXVWU\
DFWLRQV WR HQVXUH WKHLU HIIHFWLYH LPSOHPHQWDWLRQ
7KH )OLJKW 6DIHW\ )RXQGDWLRQ LV FRPPLWWHG WR D
VLJQLILFDQW DZDUHQHVV FDPSDLJQ WKDW ZLOO HQVXUH
DYDLODELOLW\ RI WKLV LQIRUPDWLRQ WR HYHU\RQH ZKR
SDUWLFLSDWHV LQ DSSURDFKDQGODQGLQJ RSHUDWLRQV VR
WKDW DOO FDQ SOD\ D SDUW LQ LPSURYLQJ VDIHW\ ZLWKLQ
WKHLU VSKHUH RI LQIOXHQFH
7KH FRRSHUDWLRQ DQG FRQWULEXWLRQ RI DOO SOD\HUV LQ WKH
JOREDO DYLDWLRQ V\VWHP DUH UHTXLUHG WR
x (QKDQFH
SDUWQHUVKLS
FRRSHUDWLRQ
DQG
FRPPXQLFDWLRQ EHWZHHQ
 RSHUDWRUV
 DLU WUDIILF FRQWURO VHUYLFHV
 VWDWH RSHUDWLRQDO DXWKRULWLHV
 VWDWH QDYLJDWLRQ DJHQFLHV
 VHUYLFHV SURYLGHUV

$OO FRQFOXVLRQV DQG UHFRPPHQGDWLRQV ZHUH GDWD


GULYHQ DQG VXSSRUWHG E\ IDFWXDO HYLGHQFH RI WKHLU
UHOHYDQFH WR WKH UHGXFWLRQ RI DSSURDFKDQGODQGLQJ
LQFLGHQWV DQG DFFLGHQWV
6WDWLVWLFDO 'DWD

$SSURDFKDQGODQGLQJ DFFLGHQWV GHILQHG DV


DFFLGHQWV RFFXUULQJ GXULQJ WKH LQLWLDO DSSURDFK ILQDO
DSSURDFK DQG ODQGLQJ UHSUHVHQW DSSUR[LPDWHO\
  RI WRWDO KXOO ORVVHV DQG   RI IDWDOLWLHV

)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

WUDLQLQJ RUJDQL]DWLRQV DQG


 PDQXIDFWXUHUV
$FKLHYH D
RI WKH $/$5
(GXFDWLRQ DQG 7UDLQLQJ $LG $/$5 7RRO .LW 
LQFOXGLQJ
 $/$5 DZDUHQHVV YLGHR
 %ULHILQJ 1RWHV
 6DIHW\ $OHUW %XOOHWLQV
 5LVN $ZDUHQHVV 7RRO FKHFNOLVW 
 5LVN 5HGXFWLRQ 3ODQQLQJ *XLGH DQG
 &),7 DZDUHQHVV SUHVHQWDWLRQ
)DFLOLWDWH DQ
RI DOO
FRQFOXVLRQV DQG UHFRPPHQGDWLRQV


ZLGH

GLVVHPLQDWLRQ

)OLJKWFUHZ 'HFLVLRQ0DNLQJ

HDV\ DQG IDVW LPSOHPHQWDWLRQ

&RQFOXVLRQV

(VWDEOLVKLQJ DQG DGKHULQJ WR DGHTXDWH GHFLVLRQ


PDNLQJ SURFHVVHV LPSURYH DSSURDFK DQG ODQGLQJ
VDIHW\
&UHZ UHVRXUFH PDQDJHPHQW LVVXHV LQFOXGLQJ
GHFLVLRQPDNLQJ XQGHU VWUHVV DUH REVHUYHG DV
FLUFXPVWDQWLDO IDFWRUV LQ PRUH WKDQ   RI
DSSURDFKDQGODQGLQJ DFFLGHQWV

2SHUDWLRQV DQG 7UDLQLQJ 2YHUYLHZ


6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V 
&RQFOXVLRQV

(VWDEOLVKLQJ DQG DGKHULQJ WR DGHTXDWH VWDQGDUG


RSHUDWLQJ SURFHGXUHV 623V LPSURYHV DSSURDFK
DQG ODQGLQJ VDIHW\
7KH RPLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ
UDQN
x $V D FDXVDO IDFWRU DORQJ ZLWK RWKHU IDFWRUV LQ
  RI IDWDO DSSURDFKDQGODQGLQJ HYHQWV DQG
x $ IDFWRU WR VRPH GHJUHH LQ   RI DOO
DSSURDFKDQGODQGLQJ DFFLGHQWV

5HFRPPHQGDWLRQV

x
x

5HFRPPHQGDWLRQV

x
x

2SHUDWRUV VKRXOG GHYHORS 623V UHJDUGLQJ WKH


XVH RI DXWRPDWLRQ GXULQJ WKH DSSURDFK DQG
ODQGLQJ SKDVHV DQG SURYLGH WUDLQLQJ DFFRUGLQJO\
(UURUV LQ XVLQJ DQG PDQDJLQJ WKH DXWRPDWLF
IOLJKW V\VWHP DQGRU WKH ODFN RI DZDUHQHVV RI WKH
RSHUDWLQJ PRGHV DUH FDXVDO IDFWRUV LQ PRUH
WKDQ   RI DSSURDFKDQGODQGLQJ DFFLGHQWV
DQG
2SHUDWRUV VKRXOG GHILQH D FOHDU SROLF\ UHJDUGLQJ
WKH UROH RI WKH SLORWLQFRPPDQG FRPPDQGHU LQ
FRPSOH[ DQG GHPDQGLQJ VLWXDWLRQV
7UDLQLQJ VKRXOG DGGUHVV WKH SUDFWLFH RI
WUDQVIHUULQJ IO\LQJ GXWLHV GXULQJ RSHUDWLRQDOO\
FRPSOH[ VLWXDWLRQV

2SHUDWRUV VKRXOG SURYLGH HGXFDWLRQ DQG WUDLQLQJ


WKDW HQKDQFH IOLJKWFUHZ GHFLVLRQPDNLQJ DQG
ULVN HUURU PDQDJHPHQW DQG
2SHUDWRUV VKRXOG GHYHORS DQ HIIHFWLYH WDFWLFDO
GHFLVLRQPDNLQJ PRGHO IRU XVH LQ WLPHFULWLFDO
VLWXDWLRQV

3UHSDUHGQHVV WR *RDURXQG DQG &RPPLWPHQW

6WDWH VKRXOG PDQGDWH DQG RSHUDWRUV VKRXOG


GHYHORS DQG LPSOHPHQW 623V IRU DSSURDFKDQG
ODQGLQJ RSHUDWLRQV
2SHUDWRUV VKRXOG GHYHORS 623V WKDW DOORZ WKHLU
SUDFWLFDO DSSOLFDWLRQ LQ QRUPDO RSHUDWLQJ
HQYLURQPHQW
7KH LQYROYHPHQW RI IOLJKW FUHZV LV HVVHQWLDO LQ
WKH GHYHORSPHQW DQG HYDOXDWLRQ RI 623V
2SHUDWRUV VKRXOG LPSOHPHQW URXWLQH DQG FULWLFDO
HYDOXDWLRQ RI 623V WR GHWHUPLQH WKH QHHG IRU
FKDQJH

IRU 0LVVHG$SSURDFK
&RQFOXVLRQV

)DLOXUH WR UHFRJQL]H WKH QHHG IRU DQG WR H[HFXWH D


PLVVHG DSSURDFK ZKHQ DSSURSULDWH LV D PDMRU
FDXVH RI DSSURDFK DQG ODQGLQJ DFFLGHQWV
0RUH WKDQ   RI DSSURDFKDQGODQGLQJ DFFLGHQWV
FRQWDLQHG HOHPHQWV ZKLFK VKRXOG KDYH EHHQ
UHFRJQL]HG E\ WKH FUHZ DV LPSURSHU DQG ZKLFK
VKRXOG KDYH SURPSWHG D JRDURXQG

)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,W LV DOVR REVHUYHG WKDQ ZKHQ DQ XQVWDEOH DSSURDFK


ZDUUDQWV D JRDURXQG GHFLVLRQ OHVV WKDQ   RI
IOLJKWFUHZV DFWXDOO\ LQLWLDWH D JRDURXQG

5HFRPPHQGDWLRQV

5HFRPPHQGDWLRQV

2SHUDWRUV VKRXOG VSHFLI\ ZHOOGHILQHG JRDURXQG


JDWHV IRU DSSURDFK DQG ODQGLQJ RSHUDWLRQV
3DUDPHWHUV VKRXOG LQFOXGH
 9LVLELOLW\ PLQLPD UHTXLUHG IRU WKH DSSURDFK
DQG ODQGLQJ RSHUDWLRQ
 $VVHVVPHQW DW WKH ILQDO DSSURDFK IL[ )$) RU
RXWHU PDUNHU 20 RI FUHZ DQG DLUFUDIW
UHDGLQHVV IRU DSSURDFK DQG
 0LQLPXP DOWLWXGH DW ZKLFK WKH DLUFUDIW PXVW
EH VWDELOL]HG
2SHUDWRUV VKRXOG GHYHORS DQG VXSSRUW

$ WUXH QREODPH JRDURXQG SROLF\ VKRXOG
DOOHYLDWH WKH UHSRUWLQJ DQG MXVWLILFDWLRQ
UHTXLUHPHQWV IROORZLQJ D JRDURXQG RU GLYHUVLRQ
DQG
7UDLQLQJ DQG FRPSDQ\ SHUIRUPDQFH
PDQDJHPHQW V\VWHPV VKRXOG UHLQIRUFH WKHVH
SROLFLHV
1REODPH

*RDURXQG

DQG

0LVVHG

$SSURDFK

3ROLFLHV

)O\LQJ 6WDELOL]HG $SSURDFKHV

2SHUDWRUV VKRXOG GHILQH WKH SDUDPHWHUV RI D


VWDELOL]HG DSSURDFK LQ WKHLU IOLJKW RSHUDWLRQV
PDQXDOV SROLF\ PDQXDO DQGRU LQ WKHLU DLUFUDIW
RSHUDWLQJ PDQXDO $20  LQFOXGLQJ DW OHDVW WKH
IROORZLQJ HOHPHQWV
 ,QWHQGHG IOLJKW SDWK
 6SHHG
 3RZHU VHWWLQJ
 $WWLWXGH
 6LQN UDWH
 &RQILJXUDWLRQ DQG
 &UHZ UHDGLQHVV
$OO IOLJKWV VKRXOG EH VWDELOL]HG E\ IW P
KHLJKW DERYH DLUILHOG HOHYDWLRQ LQ LQVWUXPHQW
PHWHRURORJLFDO FRQGLWLRQV ,0& DQG E\ IW
P DERYH DLUILHOG HOHYDWLRQ LQ YLVXDO
PHWHRURORJLFDO FRQGLWLRQV 90& 
7KH DSSURDFK VKRXOG EH FRQVLGHUHG VWDELOL]HG
RQO\ LI
 7KH DLUFUDIW LV RQ WKH FRUUHFW IOLJKW SDWK
 2QO\ VPDOO FKDQJHV LQ KHDGLQJ DQG SLWFK DUH
UHTXLUHG WR PDLQWDLQ WKDW SDWK
 7KH DLUVSHHG LV

QRW PRUH WKDQ 9 $33   NW ,$6 DQG

QRW OHVV WKDQ 9

$33

 NW

&RQFOXVLRQV
1RWH 

8QVWDELOL]HG DQG UXVKHG DSSURDFKHV FRQWULEXWH WR


DSSURDFK DQG ODQGLQJ DFFLGHQWV
&RQWLQXLQJ DQ XQVWDELOL]HG DSSURDFK LV D FDXVDO
IDFWRU LQ   RI DOO DSSURDFKDQGODQGLQJ
DFFLGHQWV
$SSUR[LPDWHO\   RI UXVKHG DQG XQVWDEOH
DSSURDFKHV LQYROYH DQ LQFRUUHFW PDQDJHPHQW RI WKH
GHVFHQWDQGDSSURDFK SURILOH DQGRU HQHUJ\ OHYHO
LH EHLQJ VORZ DQGRU ORZ EHLQJ IDVW DQGRU KLJK 

7KH

DERYH

UHFRPPHQGDWLRQ

DGDSWHG WR UHIOHFW WKH $LUEXV 9

KDV

EHHQ

$33 FRQFHSW

 7KH DLUFUDIW LV LQ WKH SURSHU ODQGLQJ


FRQILJXUDWLRQ
 7KH VLQN UDWH LV QRW JUHDWHU WKDQ   IWPQ

,I DQ DSSURDFK UHTXLUHV D VLQN UDWH JUHDWHU


WKDQ   IWPQ D VSHFLDO EULHILQJ LV
UHTXLUHG

)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH SRZHU VHWWLQJ LV DSSURSULDWH IRU WKH


FRQILJXUDWLRQ DQG QRW EHORZ WKH PLQLPXP
SRZHU IRU DSSURDFK DV GHILQHG LQ WKH DLUFUDIW
RSHUDWLQJ PDQXDO DV DSSOLFDEOH DQG
 $OO EULHILQJV DQG FKHFNOLVWV KDYH EHHQ
SHUIRUPHG DQG
,Q DGGLWLRQ /2&RQO\ DQG ,/6 DSSURDFKHV DUH
FRQVLGHUHG VWDELOL]HG LI WKH\ DOVR IXOILOO WKH
IROORZLQJ
 /2&RQO\ DSSURDFKHV PXVW EH IORZQ ZLWKLQ
RQH GRW RI WKH ORFDOL]HU
 &$7 , ,/6 DSSURDFKHV PXVW EH IORZQ ZLWKLQ
RQH GRW RI WKH JOLGH VORSH *6 DQG ORFDOL]HU
/2&  DQG
 &$7 ,, RU &$7 ,,, ,/6 DSSURDFKHV PXVW EH
IORZQ ZLWKLQ WKH JOLGH VORSH DQG ORFDOL]HU
H[FHVVLYH GHYLDWLRQ ZDUQLQJV


3LORW  &RQWUROOHU &RPPXQLFDWLRQV

&RQFOXVLRQV

,PSURYLQJ FRPPXQLFDWLRQ DQG PXWXDO


XQGHUVWDQGLQJ EHWZHHQ DLU WUDIILF FRQWURO VHUYLFHV
DQG IOLJKW FUHZV RI HDFK RWKHUV RSHUDWLRQDO
HQYLURQPHQW ZLOO LPSURYH DSSURDFK DQG ODQGLQJ
VDIHW\
,QFRUUHFW RU LQDGHTXDWH
x $7& LQVWUXFWLRQV
x :HDWKHU RU WUDIILF LQIRUPDWLRQ DQGRU
x $GYLFHVHUYLFH LQ FDVH RI HPHUJHQF\
DUH FDXVDO IDFWRUV LQ PRUH WKDQ   RI DSSURDFK
DQGODQGLQJ DFFLGHQWV
$SSUR[LPDWHO\   RI DOWLWXGH GHYLDWLRQV DUH WKH
UHVXOW RI D EUHDNGRZQ LQ WKH FRQWUROOHU  SLORW
FRPPXQLFDWLRQ ORRS

1RWH 
7KH DERYH UHFRPPHQGDWLRQ KDV EHHQ DGDSWHG
WR

UHIOHFW

WKH

$LUEXV

/2&

DQG

*6

5HFRPPHQGDWLRQV

H[FHVVLYH

$7& VHUYLFHV DQG RSHUDWRUV VKRXOG


x ,QWURGXFH MRLQW WUDLQLQJ WKDW LQYROYHV ERWK $7&
SHUVRQQHO DQG IOLJKW FUHZV WR
 3URPRWH PXWXDO XQGHUVWDQGLQJ RI LVVXHV VXFK
DV SURFHGXUHV LQVWUXFWLRQV RSHUDWLRQDO
UHTXLUHPHQWV DQG OLPLWDWLRQV EHWZHHQ IOLJKW
GHFN DQG WKH $7& HQYLURQPHQW
 ,PSURYH FRQWUROOHUV NQRZOHGJH RI WKH
FDSDELOLWLHV DGYDQFHG WHFKQRORJ\ IOLJKW GHFNV
DQG
 )RVWHU LPSURYHG FRPPXQLFDWLRQV DQG WDVN
PDQDJHPHQW E\ SLORWV DQG FRQWUROOHUV GXULQJ
HPHUJHQF\ VLWXDWLRQV DQG
x (QVXUH WKDW FRQWUROOHUV DUH DZDUH RI WKH
LPSRUWDQFH RI XQDPELJXRXV LQIRUPDWLRQ
H[FKDQJH SDUWLFXODUO\ GXULQJ LQIOLJKW
HPHUJHQFLHV
x ,PSOHPHQW SURFHGXUHV WKDW UHTXLUH LPPHGLDWH
FODULILFDWLRQ RU YHULILFDWLRQ RI WUDQVPLVVLRQV IURP
IOLJKW FUHZV WKDW LQGLFDWH D SRVVLEOH HPHUJHQF\
VLWXDWLRQ
x ,PSOHPHQW SURFHGXUHV IRU $7& KDQGOLQJ RI
DLUFUDIW LQ HPHUJHQF\ VLWXDWLRQV WR PLQLPL]H
IOLJKW FUHZ GLVWUDFWLRQ

GHYLDWLRQ ZDUQLQJV

x
x
x
x
x
x
x

'XULQJ YLVXDO DSSURDFKHV ZLQJV PXVW EH OHYHO


RQ ILQDO ZKHQ WKH DLUFUDIW UHDFKHV  IW DERYH
DLUILHOG HOHYDWLRQ
'XULQJ FLUFOLQJ DSSURDFKHV ZLQJV PXVW EH OHYHO
RQ ILQDO ZKHQ WKH DLUFUDIW UHDFKHV  IW DLUILHOG
HOHYDWLRQ
8QLTXH DSSURDFKHV PD\ UHTXLUH D VSHFLDO
EULHILQJ
&RPSDQ\ SROLF\ SROLF\ PDQXDO RU 623V VKRXOG
VWDWH WKDW D JRDURXQG LV UHTXLUHG LI WKH DLUFUDIW
EHFRPHV XQVWDELOL]HG GXULQJ WKH DSSURDFK
7KH LPSOHPHQWDWLRQ RI FHUWLILHG FRQVWDQWDQJOH
SURFHGXUHV IRU QRQSUHFLVLRQ DSSURDFKHV VKRXOG
EH H[SHGLWHG JOREDOO\
)OLJKW FUHZV VKRXOG EH WUDLQHG RQ WKH SURSHU XVH
RI FRQVWDQWDQJOH VWDELOL]HG DSSURDFK
SURFHGXUHV
)OLJKW FUHZV VKRXOG EH HGXFDWHG RQ WKH
DSSURDFK GHVLJQFULWHULD DQG PLQLPXP REVWDFOH
FOHDUDQFH UHTXLUHPHQWV LH IRU HDFK VHJPHQW
RI WKH DSSURDFK  DQG
)OLJKWFUHZV VKRXOG WDNH WLPH WR PDNH WLPH
ZKHQHYHU FRFNSLW VLWXDWLRQ EHFRPHV FRQIXVLQJ
RU DPELJXRXV

)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,Q FRRSHUDWLRQ ZLWK DLUSRUW DXWKRULWLHV DQG


UHVFXH VHUYLFHV LPSOHPHQW XQDPELJXRXV
HPHUJHQF\ SURFHGXUHV DQG FRPPRQ
SKUDVHRORJ\ WR HOLPLQDWH FRQIXVLRQ DQG
x 'HYHORS MRLQWO\ ZLWK DLUSRUW DXWKRULWLHV DQG ORFDO
UHVFXH VHUYLFHV HPHUJHQF\WUDLQLQJ SURJUDPV
WKDW DUH FRQGXFWHG RQ D UHJXODU EDVLV
)OLJKW FUHZV VKRXOG
x 9HULI\
XQGHUVWDQGLQJ RI HDFK $7&
FRPPXQLFDWLRQ DQG UHTXHVW FODULILFDWLRQ ZKHQ
QHFHVVDU\ DQG
x $FFXUDWHO\ UHSRUW WKH VWDWXV RI DEQRUPDO DQG
HPHUJHQF\ VLWXDWLRQV DQG WKH QHHG IRU
HPHUJHQF\ DVVLVWDQFH XVLQJ VWDQGDUG
SKUDVHRORJ\

$SSURDFK

+D]DUGV

/RZ

9LVLELOLW\

2SHUDWRUV VKRXOG GHYHORS DQG LPSOHPHQW D


SROLF\ IRU WKH DSSURSULDWH XVH RI DXWRPDWLRQ
QDYLJDWLRQ DQG DSSURDFK DLGV IRU WKH DSSURDFK
EHLQJ IORZQ

8VH RI 5DGLR $OWLPHWHU IRU 7HUUDLQ $ZDUHQHVV


&RQFOXVLRQV

8VLQJ WKH UDGLR DOWLPHWHU 5$ DV DQ HIIHFWLYH WRRO


KHOSV SUHYHQW DSSURDFK DQG ODQGLQJ DFFLGHQWV
5HFRPPHQGDWLRQV

9LVXDO

,OOXVLRQV DQG &RQWDPLQDWHG 5XQZD\ 2SHUDWLRQV

x
&RQFOXVLRQV

7KH ULVN RI DSSURDFK DQG ODQGLQJ DFFLGHQW LV KLJKHU


LQ RSHUDWLRQV FRQGXFWHG LQ ORZ OLJKW DQGRU YLVLELOLW\
RQ ZHW RU RWKHUZLVH FRQWDPLQDWHG UXQZD\V DQG ZLWK
WKH SUHVHQFH RI RSWLFDO RU SK\VLRORJLFDO LOOXVLRQV
0RUH WKDQ   RI &),7 DQG UXQZD\
H[FXUVLRQRYHUUXQ HYHQWV RFFXU
x ,Q ORZ YLVLELOLW\
x ,Q KLOO\ RU PRXQWDLQRXV WHUUDLQ
x 2Q FRQWDPLQDWHG UXQZD\ DQGRU
x 8QGHU DGYHUVH ZLQG FRQGLWLRQV

(GXFDWLRQ LV QHHGHG WR LPSURYH FUHZ


DZDUHQHVV RI UDGLR DOWLPHWHU RSHUDWLRQ DQG
EHQHILWV
2SHUDWRUV VKRXOG VWDWH WKDW WKH UDGLR DOWLPHWHU LV
WR EH XVHG GXULQJ DSSURDFK RSHUDWLRQV DQG
VSHFLI\ SURFHGXUHV IRU LWV XVH DQG
2SHUDWRUV VKRXOG ILW UDGLR DOWLPHWHUV DQG
DFWLYDWH 6PDUW &DOORXWV DW  IHHW 
IHHW  IHHW DW  IHHW RU WKH DOWLWXGH VHW LQ
WKH '+ GHFLVLRQ KHLJKW ZLQGRZ DV ZHOO DV DW
 IW  IW IW  IW DQG  IW DV UHTXLUHG IRU
HQKDQFHG WHUUDLQ DZDUHQHVV

)OLJKW 2SHUDWLRQV 4XDOLW\ $VVXUDQFH )24$ 


&RQFOXVLRQV

&ROOHFWLRQ DQG DQDO\VLV RI LQIOLJKW SDUDPHWHUV


)24$ SURJUDPV LGHQWLI\ SHUIRUPDQFH WUHQGV WKDW
FDQ EH XVHG WR LPSURYH DSSURDFK DQG ODQGLQJ
VDIHW\

7KH ODFN RI DFTXLVLWLRQ RU WKH ORVV RI YLVXDO


UHIHUHQFHV LV WKH PRVW FRPPRQ SULPDU\ FDXVDO
IDFWRU LQ DSSURDFKDQGODQGLQJ DFFLGHQWV

5HFRPPHQGDWLRQV

)24$ VKRXOG EH LPSOHPHQWHG ZRUOGZLGH LQ


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

3DUWQHUVKLS $6$3 

)OLJKW FUHZV VKRXOG EH WUDLQHG LQ RSHUDWLRQV


LQYROYLQJ DGYHUVH FRQGLWLRQV LH FURVVZLQG
UXQZD\ FRQWDPLQDWLRQ EHIRUH WKH\ DUH DVVLJQHG
OLQH GXWLHV
)OLJKW FUHZV VKRXOG PDNH RSHUDWLRQDO XVH RI D
ULVNDVVHVVPHQW FKHFNOLVW WR LGHQWLI\ DSSURDFK
DQG ODQGLQJ KD]DUGV
$SSURSULDWH SURFHGXUHV VKRXOG EH LPSOHPHQWHG
WR OHVVHQ WKHVH ULVNV DQG

([DPSOHV

RI

)24$

EHQHILWV

VDIHW\

LPSURYHPHQWV DQG FRVW UHGXFWLRQ VKRXOG EH


SXEOLFL]HG ZLGHO\ DQG

$ SURFHVV VKRXOG EH GHYHORSHG WR EULQJ )24$


DQG LQIRUPDWLRQ VKDULQJ SDUWQHUVKLSV WR UHJLRQDO
DQG EXVLQHVV DYLDWLRQ

)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$YLDWLRQ ,QIRUPDWLRQ 6KDULQJ

&RPPXQLFDWLRQ

1DYLJDWLRQ

6XUYHLOODQFH

&16 HTXLSPHQW VXFK DV &RQWUROOHU3LORW 'DWD


/LQN &RPPXQLFDWLRQ &3'/& 

&RQFOXVLRQV

*OREDO VKDULQJ RI DYLDWLRQ LQIRUPDWLRQ GHFUHDVHV WKH


ULVN RI DSSURDFKDQGODQGLQJ DFFLGHQWV

5HIHUHQFH 'RFXPHQW

5HFRPPHQGDWLRQV

7KH

'HLGHQWLILFDWLRQ

DYLDWLRQ

)6)

LQFOXGLQJ WKRVH LQYROYLQJ &),7

RI

WKH

LPSRUWDQFH

RI

)OLJKW 6DIHW\ )RXQGDWLRQ

)OLJKW 6DIHW\ 'LJHVW


.LOOHUV LQ $YLDWLRQ

)6) 7DVN )RUFH 3UHVHQWV )DFWV


$ERXW $SSURDFKDQGODQGLQJ DQG

$OWKRXJK WKH 7DVN )RUFH LVVXHG FRQFOXVLRQV DQG


UHFRPPHQGDWLRQV
GHYHORSPHQWV
LPPHGLDWH

IRU

IXWXUH

RSHUDWRUV

EHQHILW

RI

VKRXOG

H[LVWLQJ

&RQWUROOHGIOLJKWLQWRWHUUDLQ $FFLGHQWV

WHFKQRORJLFDO
FRQVLGHU

WKH

WHFKQRORJ\

DQG

9ROXPH 1R  9ROXPH 1R 

HTXLSPHQW VXFK DV


7HUUDLQ

1RY'HF-DQ)HE

$ZDUHQHVV

DQG

:DUQLQJ

6\VWHP

7$:6 IRU EHWWHU WHUUDLQ DZDUHQHVV DQG HDUO\


ZDUQLQJ
4XLFN $FFHVV 5HFRUGHU 4$5 DQG XVH )OLJKW
2SHUDWLRQV 4XDOLW\ $VVXUDQFH )24$ WR GHWHFW
DQG FRUUHFW XQVDIH WUHQGV
5DGLR

DOWLPHWHU

ZLWK

VPDUW

FDOORXWV

IRU

HQKDQFHG WHUUDLQ DZDUHQHVV

3UHFLVLRQ

DSSURDFK

JXLGDQFH

ZKHQHYHU

DYDLODEOH DQG XVH RI 9$6,3$3, LQ VXSSRUW RI


YLVXDO VHJPHQW

*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 

0HFKDQLFDO RU HOHFWURQLF FKHFNOLVWV WR LPSURYH


FKHFNOLVW

FRPSOLDQFH

SDUWLFXODUO\

LQ

FDVH

RI

GLVWUDFWLRQ RU LQWHUUXSWLRQ 

DQG IDFWV DERXW DSSURDFKDQGODQGLQJ DFFLGHQWV

2SWLPXP 8VH RI &XUUHQW 7HFKQRORJ\(TXLSPHQW

SURYLGHV

LQIRUPDWLRQ VKDULQJ SURFHVVHV DQG

D FRRUGLQDWHG HIIRUW

5HSRUW

VRXUFHV VKRXOG EH D FDUGLQDO UXOH LQ )24$ DQG

LQIRUPDWLRQ VKDULQJ PXVW EH KHLJKWHQHG WKURXJK

6SHFLDO

FRQVROLGDWHG VRXUFH RI VWDWLVWLFDO GDWD GHILQLWLRQV

DZDUHQHVV

LQIRUPDWLRQ

IROORZLQJ

GDWD

3XEOLF

RI

$SSURDFK DQG DLUSRUW IDPLOLDUL]DWLRQ SURJUDPV


EDVHG RQ

+LJKUHVROXWLRQ SDSHU PDWHULDO

9LGHR GLVSOD\ DQGRU

6LPXODWRU YLVXDO DQG

)OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH &RQFOXVLRQV DQG 5HFRPPHQGDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,QWURGXFLQJWKH%ULHILQJ1RWHV

*HQHUDO

7R VXSSRUW WKLV VWUDWHJ\ HDFK %ULHILQJ 1RWH

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


$/$5

7DVN

)RUFH

OHG

E\

WKH

)OLJKW

3UHVHQWV WKH VXEMHFW LQ WKH &),7 DQGRU $/$5

(PSKDVL]HV WKH DSSOLFDEOH VWDQGDUGV DQG EHVW


SUDFWLFHV HJ VWDQGDUG RSHUDWLQJ SURFHGXUHV

6DIHW\

>623V@ VXSSOHPHQWDU\ WHFKQLTXHV RSHUDWLRQDO

)RXQGDWLRQ )6) 

UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV 


7KH $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWHV SURYLGH
EDFNJURXQG

LQIRUPDWLRQ

RSHUDWLRQDO

FUHZV WR GHYLDWH IURP DSSOLFDEOH VWDQGDUGV IRU

UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV IRU WKH


LPSOHPHQWDWLRQ

RI

UHFRPPHQGDWLRQV

WKH

RI

WKH

FRQFOXVLRQV
IROORZLQJ

/LVWV DQG GLVFXVVHV IDFWRUV WKDW PD\ FDXVH IOLJKW


H\HRSHQLQJ SXUSRVHV

DQG

LQWHUQDWLRQDO

3URYLGHV
GHIHQVH

)6) $/$5 7DVN )RUFH DQG

86 &RPPHUFLDO $YLDWLRQ 6DIHW\ 7HDP &$67 

x
x

JHQHULF

YHUVLRQ

DFFLGHQW

DQG

IURP

RI

WKH

IRU

SUHYHQWLRQ

SXUSRVHV

DQGRU

IRU

WUDLQLQJ

(VWDEOLVKHV D VXPPDU\ RI RSHUDWLRQDO NH\ SRLQWV

5HIHUV

WR

WKH

DVVRFLDWHG

RU

UHODWHG

%ULHILQJ

1RWHV DQG

IHHGEDFN

KDYH EHHQ DOVR FRQVLGHUHG


$

FRPSDQ\

DQG WUDLQLQJ NH\ SRLQWV

/HVVRQVOHDUQHG IURP RSHUDWLRQDO DQDO\VLV RI LQ


RFFXUUHQFHV

VXJJHVWV

FRUUHFWLRQ SXUSRVHV

$/$5 -RLQW 6DIHW\ ,PSOHPHQWDWLRQ 7HDP -6,7 

VHUYLFH

RU

SUHYHQWLRQVWUDWHJLHV DQGRU SHUVRQDO OLQHVRI

$/$5 ZRUNLQJ JURXSV

5HIHUHQFHV

UHODWHG

,&$2

86

)$5

DQG

(XURSHDQ -$5 UHJXODWRU\ GRFXPHQWV


$SSURDFKDQG/DQGLQJ

%ULHILQJ 1RWHV LV SXEOLVKHG E\ WKH )6) IRU WKH

7KH SURSRVHG HGXFDWLRQ DQG WUDLQLQJ VWUDWHJ\ LV

EHQHILW

YDOLG DW ERWK FRPSDQ\ DQG SHUVRQDO OHYHO IRU

RI

DOO

JOREDO

UHJLRQDO

DQG

FRUSRUDWH

RSHUDWRUV LQ WKH 9ROXPH  1R  $XJ1RY


RI WKH )6) )OLJKW 6DIHW\ 'LJHVW

$FFLGHQW3UHYHQWLRQ 6WUDWHJ\
7KH

$SSURDFKDQG/DQGLQJ

%ULHILQJ

5LVN DZDUHQHVV H\HRSHQLQJ 

([SRVXUH DVVHVVPHQW

,GHQWLILFDWLRQ
DW

1RWHV

RI

FRPSDQ\

UHODWHG
OHYHO

SUHYHQWLRQ
DQG

VWUDWHJLHV

OLQHVRIGHIHQVH

DW FRPSDQ\ DQGRU SHUVRQDO OHYHOV 

KDYH

EHHQ GHVLJQHG WR DOORZ DQ H\HRSHQLQJ DQG VHOI

FRUUHFWLQJ DFFLGHQWSUHYHQWLRQ VWUDWHJ\

$QDO\VLV RI IOLJKW GDWD OLQH FKHFNV DQG OLQH


DXGLWV DQG

,PSOHPHQWDWLRQ RI SUHYHQWLRQ VWUDWHJLHV DQGRU


FRUUHFWLYH DFWLRQV

,QWURGXFLQJ WKH %ULHILQJ 1RWHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

'HILQLQJ D 5HIHUHQFH $LUFUDIW


7KH

WHFKQLFDO

FRQWHQWV

RI

WKH

+RZ WR 8VH DQG ,PSOHPHQW WKH %ULHILQJ


1RWHV "

$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

*ODVVFRFNSLW
LQVWUXPHQW
SULPDU\

LQFOXGLQJ

V\VWHP

IOLJKW

DQ

(),6

GLVSOD\

0DQDJHPHQW

HOHFWURQLF
FRQVLVWLQJ

3)'

DQG

DV

IOLJKW
RI

,QWHJUDWHG DXWRSLORW $3  IOLJKW GLUHFWRU )' 

$XWRPDWLF JURXQGVSRLOHUV

$XWREUDNH V\VWHP

7KUXVW UHYHUVHUV




6WDQGDUG

SURFHGXUHV

HJ

WR

3URFHGXUHV DQG WHFKQLTXHV  6XSSOHPHQWDU\

6LPXODWRU 7UDLQLQJ WR GHYHORS QHZ VFHQDULRV


IRU

OLQH

RULHQWHG

IOLJKW

WUDLQLQJ

/2)7

RU

VSHFLDO SXUSRVH RSHUDWLRQDO WUDLQLQJ 6327 

2SHUDWLRQ XVLQJ $LUEXV ,QGXVWULHSXEOLVKHG RU

DQGRU

VWDQGDUG
GHILQLQJ

RSHUDWLQJ

7UDLQLQJ

7ZR IOLJKWGHFN FUHZPHPEHUV 

623V 

$/$5

DZDUHQHVV

WHFKQLTXHV

SURFHGXUHV

DQG

LQFRUSRUDWH $/$5FULWLFDO LWHPV  DQG

FRPSDQ\SUHSDUHG

JXLGHOLQHV

FXVWRPL]H
WKH

2SHUDWLRQDO GRFXPHQWDWLRQ

DXWRWKURWWOHDXWRWKUXVW $7+5 V\VWHPV


)OLJKW PDQDJHPHQW V\VWHP )06 

UHYLHZ

LPSOHPHQW

LQIRUPDWLRQ LQ WKH IROORZLQJ GRPDLQV

QDYLJDWLRQ

VKRXOG

DQG

UHFRPPHQGDWLRQV

GLVSOD\ 1' 

SLORWV

UHTXLUHG

RSHUDWLQJ
WKH

&UHZ UHVRXUFH PDQDJHPHQW &50 WUDLQLQJ


WR GHYHORS QHZ WRSLFDO VXEMHFWV WR VXSSRUW

IROORZLQJ

&50 GLVFXVVLRQV

HOHPHQWV

2SHUDWLQJ SKLORVRSK\

8VH RI DXWRPDWLRQ

$LUOLQH EXOOHWLQV

7DVN VKDULQJ IRU SLORW IO\LQJ >3)@ DQG SLORW

$LUOLQHV VDIHW\ PDJD]LQH DUWLFOHV

&ODVVURRP OHFWXUHV XVLQJ %ULHILQJ 1RWHV

,QIRUPDWLRQ

QRQIO\LQJ >31)@ 

DQG DVVRFLDWHG 3UHVHQWDWLRQV  DQGRU

3) DQG 31) WDVNV IRU DOO SKDVHV RI JURXQG


DQG IOLJKW RSHUDWLRQV

%ULHILQJV

6WDQGDUG FDOOV DQG

1RUPDO FKHFNOLVWV


/LQH

6WDQGDORQH UHDGLQJ

SLORWV

VKRXOG

UHFRPPHQGDWLRQV

UHYLHZ
JXLGHOLQHV

DQG

FRPSDUH

DQG

WKH

DZDUHQHVV

LQIRUPDWLRQ ZLWK WKHLU FXUUHQW SUDFWLFHV DQG HQKDQFH


WKHLU WHFKQLTXHV DQG DZDUHQHVV OHYHO DV UHTXLUHG

,QWURGXFLQJ WKH %ULHILQJ 1RWHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

2WKHU DFWRUV LQ WKH JOREDO DYLDWLRQ V\VWHP VXFK DV

$LUEXV &RFNSLW 3KLORVRSK\ DQG

$LU WUDIILF FRQWURO VHUYLFHV

3URFHHGLQJV RI

1DYLJDWLRQ VWDWH DJHQFLHV

3HUIRUPDQFH DQG 2SHUDWLRQV &RQIHUHQFHV

2SHUDWLRQDO DXWKRULWLHV

+XPDQ )DFWRUV 6\PSRVLXPV DQG

6HUYLFH SURYLGHUV DQG

2SHUDWLRQDO /LDLVRQ 0HHWLQJV

)OLJKW DFDGHPLHV

$YLDWLRQ 5HJXODWLRQV  5HTXLUHPHQWV

VKRXOG XVH WKH SURYLVLRQ RI WKH %ULHILQJ 1RWHV WR

HYDOXDWH WKHLU SRVVLEOH FRQWULEXWLRQ WR WKH UHGXFWLRQ

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

RI &),7 DQG $SSURDFKDQG/DQGLQJ DFFLGHQWV

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV

6WDWLVWLFDO 'DWD

3$16236 'RF  

6WDWLVWLFDO GDWD TXRWHG LQ WKH %ULHILQJ 1RWHV RULJLQDWH

FRQVROLGDWHG
DQG

6SHFLDO )6) 5HSRUW

IROORZLQJ

IDFWV

VRXUFH

DERXW

RI

VWDWLVWLFDO

(XURSHDQ
-$5236

IURP YDULRXV LQGXVWU\ VRXUFHV

7KH

,&$2 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV

-RLQW


$YLDWLRQ

5HTXLUHPHQW

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV 
SURYLGHV

GDWD

GHILQLWLRQV

DSSURDFKDQGODQGLQJ

DFFLGHQWV

86 )$5 3DUW  $LU 7UDIILF DQG *HQHUDO


2SHUDWLQJ 5XOHV

LQFOXGLQJ WKRVH LQYROYLQJ &),7

86 )$5 3DUW  2SHUDWLQJ 5HTXLUHPHQWV


'RPHVWLF )ODJ DQG 6XSSOHPHQWDO 2SHUDWLRQV
DQG

)OLJKW 6DIHW\ )RXQGDWLRQ

)OLJKW 6DIHW\ 'LJHVW

86 )$$ $HURQDXWLFDO ,QIRUPDWLRQ 0DQXDO


$,0

.LOOHUV LQ $YLDWLRQ

%DVLF

)OLJKW

,QIRUPDWLRQ

DQG

$7&

3URFHGXUHV

)6) 7DVN )RUFH 3UHVHQWV )DFWV


$ERXW $SSURDFKDQGODQGLQJ DQG

$LUOLQHV $LUFUDIW 2SHUDWLQJ 0DQXDOV

&RQWUROOHGIOLJKWLQWRWHUUDLQ $FFLGHQWV

9ROXPH 1R  9ROXPH 1R 

6HYHUDO

DLUOLQHV

DLUFUDIW

RSHUDWLQJ

PDQXDOV

$20 KDYH EHHQ XVHG WR FRQILUP RSHUDWRUV

1RY'HF-DQ)HE

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

IDFWRUV DQG KXPDQ IDFWRUV LQYROYHG LQ DSSURDFK

UHFRPPHQGDWLRQV

DQG

WUDLQLQJ

DQGODQGLQJ LQFLGHQWV DQG DFFLGHQWV

JXLGHOLQHV

$LUEXV

,QGXVWULH

RSHUDWLRQDO

DQG

*RYHUQPHQW DJHQFLHV ZHE VLWHV

WUDLQLQJ

GRFXPHQWDWLRQ

1$6$

$656

KWWSDUVDUFQDVDJRY

KWWSKXPDQIDFWRUVDUFQDVDJRY 

)OLJKW &UHZ 2SHUDWLQJ 0DQXDOV )&20 

4XLFN 5HIHUHQFH +DQGERRNV 45+ 

86 )$$ KWWSZZZIDDJRY 

)OLJKW &UHZ 7UDLQLQJ 0DQXDOV )&70 

86 176% KWWSZZZQWVEJRYDYLDWLRQ 

,QVWUXFWRU 6XSSRUW *XLGHV

)UHQFK %($ KWWSZZZEHDIURUJ 

,QWURGXFLQJ WKH %ULHILQJ 1RWHV


3DJH 

DQG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

8. $$,% KWWSRSHQJRYXNDDLE  DQG

$XVWUDOLDQ %$6, KWWSZZZEDVLJRYDX 

$FNQRZOHGJHPHQW
7KH

IROORZLQJ

$LUEXV

,QGXVWULH

FROOHDJXHV

DQG

LQGXVWU\ SDUWQHUV KDYH FRQWULEXWHG WR WKLV EURFKXUH


LQ UHYLHZLQJ WKH %ULHILQJ 1RWHV LQ WKHLU UHVSHFWLYH

$LUOLQHV )OLJKW 6DIHW\ 0DJD]LQHV

$LU &DQDGD

$LU )UDQFH

ILHOGV RI H[SHUWLVH
&DSW 1DJL $%6, )HUQDQGR $/2162 &DSW 0LFKHO
%5$1'7

3KLOLSSH

%85&,(5

&DSW

'DYH

$LU ,QWHU

&$5%$8*+ &DSW $ODVWDLU &5$,* &DSW 'DYLG

$PHULFDQ $LUOLQHV

',

%ULWLVK $LUZD\V

&DWKD\ 3DFLILF $LUZD\V DQG

86 $LUZD\V

&855<

&DSW

6$172

&DSW

+XJR

52&./,))

6DIHW\

0DFDUWKXU
9ROXPH

-RE


*X\
'DQ

$LUJXLGH

$LU

DQG

&DSW

-RKQ

3(5(=
)2

3XEOLFDWLRQV

'LVDVWHU

9ROXPH

9ROXPHV

63(<(5
67,(

,QF

7$512:6.,



3XEOLFDWLRQV 3W\ /WG $XVWUDOLD 

)HDWXUH DUWLFOHV IURP WKH IROORZLQJ SXEOLFDWLRQV


$LU 7UDQVSRUW :RUOG

$23$ 3LORW

$YLDWLRQ :HHN DQG 6SDFH 7HFKQRORJ\

)OLJKW ,QWHUQDWLRQDO

)6) )OLJKW 6DIHW\ 'LJHVW

)6) $FFLGHQW 3UHYHQWLRQ %XOOHWLQV DQG

3URIHVVLRQDO 3LORW

5RJHU

&DSW

&DSW

$HURVSDFH

6XVDQ

'DQ

5(('

520(52
52=(//(

&DSW

/DUU\

)2

'LGLHU

&DSW

*HQH

52=(17+$/ &DSW 'LFN 6/$77(5 -HDQ -DFTXHV

86$  DQG

&DSW

/21* &DSW 'LFN 0F .,11(< &KULVWLDQ 0217(,/

$YUDP *ROGVWHLQ )O\LQJ RXW RI GDQJHU $ 3LORWV


WR

&2859,//(

)/$'(

0DUN /$&$*1,1$ 5REHUW /,*1((

521&(5$<

*XLGH

'H

.ODXV

*851(< -DFN\ -2<( &DSW +DQV .5(002/(5

,QFLGHQWV DQG DFFLGHQWV DQDO\VLV SXEOLFDWLRQV

%HUWUDQG

&DSW

,QWURGXFLQJ WKH %ULHILQJ 1RWHV


3DJH 

5DLQHU

5REHUW

67$5.

680:$/7

&DSW
&DSW

&KULVWLDQ
(WLHQQH

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQGODQGLQJ%ULHILQJ1RWHV

*ORVVDU\RI7HUPVDQG$EEUHYLDWLRQV

7HUP
RU
$EEUHYLDWLRQ
$7+5

$$/

$&

$&$6

'HILQLWLRQ
$XWRWKURWWOH RU $XWRWKUXVW V\VWHP

$ERYH $LUSRUW /HYHO

86 )$$ $GYLVRU\ &LUFXODU

$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 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
$,3

'HILQLWLRQ
$HURQDXWLFDO ,QIRUPDWLRQ 3XEOLFDWLRQV
SXEOLVKHG E\ ,&$2 PHPEHU VWDWHV

$/$

$/$5

$/6

$SSURDFKDQG/DQGLQJ $FFLGHQW

$SSURDFKDQG/DQGLQJ $FFLGHQW 5HGXFWLRQ

$LUSRUW /LJKWLQJ 6\VWHP

$/71

$OWHUQDWH

$0&

$FFHSWDEOH 0HDQV RI &RPSOLDQFH IRU FRPSOLDQFH ZLWK -$5236 

$20

$LUFUDIW 2SHUDWLQJ 0DQXDO HVWDEOLVKHG E\ RSHUDWRU

$3

$33

$SSURDFK *DWH

$XWR 3LORW

$SSURDFK FRQWURO IUHTXHQF\

$ SRLQW LQ VSDFH ZLWK D GHILQHG FRQILJXUDWLRQ DQG HQHUJ\ VWDWH


VHH DOVR 6WDELOL]DWLRQ +HLJKW DQG 1H[W 7DUJHW

$57&&

$6$3

$LU 5RXWH 7UDIILF &RQWURO &HQWHU XVXDOO\ UHIHUUHG WR DV &HQWHU

$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

%5*

%ULWLVK $LUZD\V ,QIRUPDWLRQ 6\VWHP

%HDULQJ HJ EHDULQJ WR D ZD\SRLQW RU QDYDLG

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
&$3

'HILQLWLRQ
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'/&

&50

&RQWUROOHU 3LORW 'DWD /LQN &RPPXQLFDWLRQV

&UHZ 5HVRXUFH 0DQDJHPHQW

'$ +

'HFLVLRQ $OWLWXGH +HLJKW

'&'8

'DWD &RPPXQLFDWLRQV 'LVSOD\ 8QLW

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
''*

',5 72

'HILQLWLRQ
'LVSDWFK 'HYLDWLRQ *XLGH VHH DOVR 00(/ DQG 0(/

'LUHFW URXWH WR > D ZD\SRLQW @

',67

'LVWDQFH

'0(

'LVWDQFH 0HDVXULQJ (TXLSPHQW

'1$

)UHQFK 'LUHFWLRQ GH OD 1DYLJDWLRQ $HULHQQH

(&$0

(),6

(*3:6

(*7

(7236

(OHFWURQLF &HQWUDOL]HG $LUFUDIW 0RQLWRU

(OHFWURQLF )OLJKW ,QVWUXPHQWV 6\VWHP

(QKDQFHG *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP VHH DOVR 7$:6

([KDXVW *DV 7HPSHUDWXUH

([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

)&8

)'

)OLJKW &UHZ 2SHUDWLQJ 0DQXDO HVWDEOLVKHG E\ $LUEXV ,QGXVWULH

)OLJKW &RQWURO 8QLW LH $3)' LQWHUIDFH

)OLJKW 'LUHFWRU

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
)')

))&&

'HILQLWLRQ
)LQDO 'HVFHQW )L[

)RUZDUG)DFLQJ&UHZ &RFNSLW

))6

)XOO )OLJKW 6LPXODWRU

),5

)OLJKW ,QIRUPDWLRQ 5HJLRQ

)/

)0*6

)0$

)0*(6

)06

)24$

)6)

IW

*$

*$,1

*&$6

*1'

*166

*36

*3:6

)OLJKW /HYHO

)OLJKW 0DQDJHPHQW DQG *XLGDQFH 6\VWHP

)OLJKW 0RGHV $QQXQFLDWRU

)OLJKW 0DQDJHPHQW *XLGDQFH DQG >IOLJKW@ (QYHORS >SURWHFWLRQ@ 6\VWHP

)OLJKW 0DQDJHPHQW 6\VWHP

)OLJKW 2SHUDWLRQV 4XDOLW\ $VVXUDQFH

)OLJKW 6DIHW\ )RXQGDWLRQ

)HHW

*R $URXQG

*OREDO $QDO\VLV DQG ,QIRUPDWLRQ 1HWZRUN

*URXQG &ROOLVLRQ $YRLGDQFH 6\VWHP

*URXQG FRQWURO IUHTXHQF\

*OREDO 1DYLJDWLRQ 6DWHOOLWH 6\VWHP

*OREDO 3RVLWLRQLQJ 6\VWHP

*URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ

'HILQLWLRQ

*6

*OLGH 6ORSH

*:

*URVV :HLJKW

+$7

+HLJKW $ERYH 7RXFKGRZQ

+)

+,5/

+LJK )UHTXHQF\

+LJK ,QWHQVLW\ 5XQZD\ /LJKWLQJ

+6,

+RUL]RQWDO 6LWXDWLRQ ,QGLFDWRU

K3D

+HFWRSDVFDOV

,$)

,QLWLDO $SSURDFK )L[

,$3

,QVWUXPHQW $SSURDFK 3URFHGXUH

,$6

,QGLFDWHG $LU 6SHHG

,&$2

,(0

,)

,QWHUQDWLRQDO &LYLO $YLDWLRQ 2UJDQL]DWLRQ

,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(

,0&

,QVWUXPHQW /DQGLQJ 6\VWHP ZLWK FROORFDWHG 'LVWDQFH 0HDVXULQJ (TXLSPHQW

,QVWUXPHQW 0HWHRURORJLFDO &RQGLWLRQV

LQ+J

,QFKHV RI 0HUFXU\ XQLW IRU SUHVVXUH PHDVXUHPHQW

,1)2

,QIRUPDWLRQ VHUYLFH IUHTXHQF\

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ

'HILQLWLRQ

,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

/$$6

/$+6+2

/DWHUDO 1DYLJDWLRQ

/'$

//:$6

/2&

/2& %&. &56

/2)7

.QRWV

*36 /RFDO $UHD >DFFXUDF\@ $XJPHQWDWLRQ 6\VWHP

/DQG DQG +ROG 6KRUW RSHUDWLRQ

)06 PDQDJHG ODWHUDO QDYLJDWLRQ LH 1$9 PRGH

/2&W\SH 'LUHFWLRQDO $LG

/RZ /HYHO :LQGVKHDU $OHUW 6\VWHP

/RFDOL]HU

/RFDOL]HU EDFN FRXUVH

/LQH 2ULHQWHG )OLJKW >VLPXODWRU @ 7UDLQLQJ

0HWHUV

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
0$3

0&'8

0'$ +

'HILQLWLRQ
0LVVHG $SSURDFK 3RLQW

0XOWLSXUSRVH &RQWURO DQG 'LVSOD\ 8QLW VHH DOVR &'8

0LQLPXP 'HVFHQW $OWLWXGH +HLJKW

0($

0LQLPXP (QURXWH $OWLWXGH

0(/

0LQLPXP (TXLSPHQW /LVW RSHUDWRU


FXVWRPL]HG YHUVLRQ RI 00(/

0(7$5

00(/

0RGH

0HWHRURORJLFDO $LUSRUW >REVHUYDWLRQ@ 5HSRUW

0DVWHU 0LQLPXP (TXLSPHQW /LVW DSSURYHG E\ RSHUDWLRQDO DXWKRULW\

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$

06$:

06/

0LQLPXP 6DIH $OWLWXGH RU 0LQLPXP 6HFWRU $OWLWXGH

0LQLPXP 6DIH $OWLWXGH :DUQLQJ SURYLGHG E\ $7&

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'

1'%

1DYLJDWLRQ 'LVSOD\

1RQ 'LUHFWLRQDO %HDFRQ

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
1H[W 7DUJHW

'HILQLWLRQ
$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

QP

127$0

2$7

2&$ +

7KH ZD\SRLQW ORFDWHG DIWHU WKH 72 :37

1DXWLFDO PLOHV

12WLFH 7R $LU0HQ

2XWVLGH $LU 7HPSHUDWXUH

2EVWDFOH &OHDUDQFH $OWLWXGH +HLJKW

20

2XWHU 0DUNHU

3$

3DVVHQJHU $GGUHVV V\VWHP

3$3,

3)

3UHFLVLRQ $SSURDFK 3DWK ,QGLFDWRU

3LORW )O\LQJ

3)'

3ULPDU\ )OLJKW 'LVSOD\

3,&

3LORW ,Q &RPPDQG

3,5(36

3LORW 5(3RUWV

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
31)

'HILQLWLRQ
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$ '+

5DZ 'DWD

5(,/

5HYHUVLRQ

5DGLR $OWLPHWHU 'HFLVLRQ +HLJKW

5DZ QDYLJDWLRQ GDWD  EHDULQJ DQGRU GLVWDQFH IURP DLUFUDIW WR WKH WXQHG QDYDLG

5XQZD\ (QG ,GHQWLILFDWLRQ /LJKWV

$ 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

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
50,

51$9

'HILQLWLRQ
5DGLR 0DJQHWLF ,QGLFDWRU

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

67'

7$

7DUJHW

6WDQGDUG 7HUPLQDO $5ULYDO

6WDQGDUG DOWLPHWHU VHWWLQJ LH  K3D RU  LQKJ

7UDIILF $GYLVRU\ VHH DOVR 7&$6

$ 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

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

*HWWLQJ WR *ULSV ZLWK

$,5%86 ,1'8675,(
)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
7$:6

'HILQLWLRQ
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'=

7'=(

7(536

72 :37

7RXFK 'RZQ =RQH

7RXFK 'RZQ =RQH (OHYDWLRQ

86 6WDQGDUG IRU 7HUPLQDO ,QVWUXPHQW $SSURDFK 3URFHGXUHV )$5  3DUW 

: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'

7UDQVLWLRQ

7RS 2I 'HVFHQW

$ 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

$33

)LQDO $SSURDFK 6SHHG

0&/

0LQLPXP FRQWURO VSHHG LQ ODQGLQJ FRQILJXUDWLRQ ZLWK WKH FULWLFDO HQJLQH LQRSHUDWLYH

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HUP
RU
$EEUHYLDWLRQ
9 5()

'HILQLWLRQ
5HIHUHQFH DSSURDFK VSHHG DOVR UHIHUUHG WR DV WKUHVKROG UHIHUHQFH VSHHG RU WDUJHW
WKUHVKROG VSHHG

9 VWDOO

96

6WDOOLQJ VSHHG LQ D VSHFLILHG FRQILJXUDWLRQ

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

*ORVVDU\ RI WHUPV DQG $EEUHYLDWLRQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

2SHUDWLQJ3KLORVRSK\623V

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

2SHUDWLQJ3KLORVRSK\623V
6WDWLVWLFDO 'DWD

,QWURGXFWLRQ

6WULFW DGKHUHQFH WR VXLWDEOH VWDQGDUG RSHUDWLQJ


SURFHGXUHV 623V DQG QRUPDO FKHFNOLVWV LV DQ
HIIHFWLYH PHWKRG WR SUHYHQW DSSURDFKDQGODQGLQJ
DFFLGHQWV LQFOXGLQJ WKRVH LQYROYLQJ &),7
:LWKRXW VWULFW DGKHUHQFH WR 623V WKH
LPSOHPHQWDWLRQ RI JRRG FUHZ UHVRXUFHV
PDQDJHPHQW &50 SUDFWLFHV LV QRW SRVVLEOH
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI WKH
IROORZLQJ DVSHFWV
x (VWDEOLVKPHQW DQG XVH RI 623V 
x 7UDLQLQJ DVSHFWV DQG
x )DFWRUV DQG FRQGLWLRQV WKDW PD\ DIIHFW WKH
FRPSOLDQFH ZLWK SXEOLVKHG UXOHV DQG
SURFHGXUHV

)DFWRU

2PLVVLRQ RI DFWLRQ RU
LQDSSURSULDWH DFWLRQ
1RQDGKHUHQFH WR FULWHULD IRU
VWDELOL]HG DSSURDFK
,QDGHTXDWH FUHZ FRRUGLQDWLRQ
FURVVFKHFN DQG EDFNXS
,QVXIILFLHQW KRUL]RQWDO RU YHUWLFDO
VLWXDWLRQDO DZDUHQHVV
,QDGHTXDWH RU LQVXIILFLHQW
XQGHUVWDQGLQJ RI SUHYDLOLQJ
FRQGLWLRQV
6ORZ RU GHOD\HG DFWLRQ
'HOLEHUDWH QRQDGKHUHQFH WR
SURFHGXUHV
,QFRUUHFW RU LQFRPSOHWH SLORW 
FRQWUROOHU FRPPXQLFDWLRQV
,QWHUDFWLRQ ZLWK DXWRPDWLRQ
$EVHQFH RI JRDURXQG ZKHQ
UHTXLUHG

 RI
(YHQWV
 

 
 
 
 
 
 
 
 
 

7DEOH 
&DXVDO )DFWRUV UHODWHG WR 623V
LQ $SSURDFKDQG/DQGLQJ $FFLGHQWV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$LUEXV ,QGXVWULH 623V

/LQH

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV 623V SXEOLVKHG

GHYHORSPHQW

E\ $LUEXV ,QGXVWULH DUH GHVLJQHG WR DFKLHYH WKH

623V WR

IROORZLQJ REMHFWLYHV

5HIOHFW

WKH

$LUEXV

,QGXVWULH

FRFNSLW

GHVLJQ

3URPRWH RSWLPXP XVH RI DLUFUDIWW\SH GHVLJQ

FDELQ

FUHZPHPEHUV

VKRXOG

EH

DQG

3URPRWH

UHYLVLRQ

FULWLFDO

DQG

SURFHVV

RI

FRPSDQ\

FRQVWUXFWLYH

IHHGEDFN

(QVXUH WKDW UXOHV DQG SURFHGXUHV DV ZHOO DV


UHDVRQV IRU WKHLU DGRSWLRQ DUH IXOO\ XQGHUVWRRG

IHDWXUHV DQG

DQG

DQG

SKLORVRSK\ DQG RSHUDWLQJ SKLORVRSK\

SLORWV

LQYROYHG DORQJ ZLWK WKH IOLJKW VWDQGDUGV WHDP LQ WKH

E\ HQG XVHUV

$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

WDVNV DQG GXWLHV RI IOLJKWFUHZ IRU HDFK IOLJKW SKDVH

GXULQJ

WKH

GHYHORSPHQW

DQG

FHUWLILFDWLRQ

IOLJKWWHVW FDPSDLJQ DQG GXULQJ WKH URXWHSURYLQJ


623V VKRXOG EH DFFRPSOLVKHG E\ UHFDOO EXW FULWLFDO

SURJUDP

WDVNV HJ VHOHFWLRQV RI V\VWHPV DQG FKDQJHV RI


$IWHU WKH\ DUH LQWURGXFHG LQWR VHUYLFH WKH LQLWLDO

DLUFUDIW FRQILJXUDWLRQ VKRXOG EH FURVVFKHFNHG E\

623V

XVH RI QRUPDO FKHFNOLVWV DFFRUGLQJ WR WKH SKDVH RI

DUH

SHULRGLFDOO\

UHYLHZHG

DQG

LPSURYHG

IOLJKW

EDVHG RQ WKH IHHGEDFN UHFHLYHG IURP YDULRXV XVHUV


LH LQ WUDLQLQJ DQG LQ OLQH RSHUDWLRQV 

623V VKRXOG EH VXSSOHPHQWHG E\ LQIRUPDWLRQ RQ


VSHFLILF

2SHUDWRU &XVWRPL]HG 623V


$LUEXV ,QGXVWULH

623V

FDQ

EH

RSHUDWLQJ

ZHDWKHU

DGRSWHG

RSHUDWLRQ
DLUVSDFH 

&XVWRPL]HG FRPSDQ\ 623V XVXDOO\ DUH HVWDEOLVKHG

623V

VWDQGDUGL]DWLRQ

HJ
E\

DGYHUVH

RSHUDWLRQDO

HJ RSHUDWLRQ RQ ZHW RU FRQWDPLQDWHG UXQZD\

ZLWKRXW

GHYHORSPHQW RI FXVWRPL]HG FRPSDQ\ 623V

DVVXUH

RU

UHFRPPHQGDWLRQV IRU VSHFLILF W\SHV RI RSHUDWLRQV

FKDQJH E\ DQ RSHUDWRU RU XVHG DV WKH EDVLV IRU WKH

WR

WHFKQLTXHV

RSHUDWLRQ

DFURVV

WKH

LQ

VKRXOG

(7236

DUHD

DVVXPH

WKDW

DQGRU

DOO

LQ

DLUFUDIW

5960

V\VWHPV

RSHUDWH QRUPDOO\ DQG WKDW DOO DXWRPDWLF IXQFWLRQV

GLIIHUHQW

DUH XVHG QRUPDOO\

DLUFUDIW IOHHWV EHLQJ RSHUDWHG E\ WKH DLUOLQH

1RWH 

'HYLDWLRQV IURP WKH $LUEXV ,QGXVWULH 623V PD\ EH

FRRUGLQDWHG ZLWK $LUEXV ,QGXVWULH VXFK GHYLDWLRQV

V\VWHP

PD\

EH

SDUWLDOO\

RU

WRWDOO\

LQRSHUDWLYH

ZLWKRXW DIIHFWLQJ WKH 623V

XVXDOO\ UHTXLUH DSSURYDO E\ WKH DLUOLQHV RSHUDWLRQDO


DXWKRULW\

623V
623V

IUHTXHQWO\

GLUHFWLYH WKH OHYHO RI H[SDQGHG LQIRUPDWLRQ VKRXOG

DFFLGHQWV

WDLORUHG

WR

EH

VLPSOH

UHIOHFW

WKH

FOHDU

FRQFLVH

VKRXOG

DQG

EH

VKRXOG

DLUOLQHV

RSHUDWLQJ

SKLORVRSK\ DQG WUDLQLQJ SKLORVRSK\


2SHUDWRUV

623V

VKRXOG

EH

UHYLHZHG

DQG

UHDVVHVVHG SHULRGLFDOO\ EDVHG RQ UHYLVLRQV RI WKH


$LUEXV ,QGXVWULHV 623V DQG RQ LQWHUQDO FRPSDQ\

HPSKDVL]H

LQYROYHG

7DVN VKDULQJ

2SWLPXP XVH RI DXWRPDWLRQ

2SHUDWLRQV *ROGHQ 5XOHV

6WDQGDUGV FDOOV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

IROORZLQJ

DVSHFWV

DSSURDFKDQGODQGLQJ

IHHGEDFN WR LGHQWLI\ DQ\ QHHG IRU FKDQJH

3DJH 

WKH

LQ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH (XURSHDQ -$$ GHILQHV WKH VFRSH DQG FRQWHQWV

8VH RI QRUPDO FKHFNOLVWV

RI

623V

LQ

-$5236



DQG

DVVRFLDWHG

$SSURDFK DQG JRDURXQG EULHILQJV

$SSHQGL[ 

$OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV

7KH VFRSH RI 623V GHILQHG LQ WKH )$$ $& 

'HVFHQW SURILOH PDQDJHPHQW

(QHUJ\ PDQDJHPHQW

7HUUDLQ DZDUHQHVV

$SSURDFK KD]DUGV DZDUHQHVV

8VH RI UDGLR DOWLPHWHU

LV DOORFDWHG E\ WKH -$$ WR WKH 3DUW $ DQG 3DUW % RI


WKH 2SHUDWLRQV 0DQXDO DV IROORZV

3DUW $  *HQHUDO RSHUDWLRQDO SROLFLHV LH QRQ


W\SHUHODWHG PDWWHUV  DQG

3DUW %  $HURSODQH RSHUDWLQJ PDWWHUV LH W\SH


UHODWHG PDWWHUV 

*HQHUDO 3ULQFLSOHV
623V

(OHPHQWV

RI

VWDELOL]HG

DSSURDFK

VKRXOG

DQG

SURFHGXUHV

DSSURDFK JDWHV

DEQRUPDO

$SSURDFK

SURFHGXUHV

DQG

WHFKQLTXHV

/DQGLQJ

DQG

EUDNLQJ

5HDGLQHVV

DQG

WHFKQLTXHV

IRU

YDULRXV

FRPPLWPHQW

WR

DGGUHVV

WKH

RU

XQGHU

IROORZLQJ

HYHQWV RU DFWLRQV LQLWLDWLQJ JURXSV RI DFWLRQV

JURXSV

RI

DFWLRQV

EHLQJ

DFFRPSOLVKHG

LQ

IOLJKWGHFN

SDQHO

VFDQQLQJ

VHTXHQFHV

RU

DFWLRQ EORFNV DQG

623V LQ $GYLVRU\ &LUFXODU $& 

6WDQGDUG FDOOV


7KH 623V GHILQHG LQ $&  LQFOXGHV LWHPV

SROLFLHV

LH

VWDQGDUG SKUDVHRORJ\ DQG WHUPV XVHG IRU


HIIHFWLYH LQWUDFUHZ FRPPXQLFDWLRQ

UHODWHG WR

6WDQGDUGL]DWLRQ

QRQW\SH

UHODWHG  DQG

RSHUDWLQJ

FRQGLWLRQV

SDWWHUQV VXSSRUWLQJ WKH IORZ DQG VHTXHQFH RI

7KH 86 )$$ GHILQHV WKH VFRSH DQG FRQWHQWV RI

RSHUDWLRQV

ZKHQ

HPHUJHQF\

$FWLRQ SDWWHUQV


5HJXODWRU\ 'HILQLWLRQ

*HQHUDO

SDUWLFXODUO\

VHTXHQFH DV D JURXS

IROORZLQJ

DVSHFWV

RU

$FWLRQ EORFNV


VKRXOG

WR

FDOOHG DFWLRQEORFNV 

JRDURXQG

ERXQFH UHFRYHU\ 

623V

RUGHU

7ULJJHUV


HJ *3:6 ZDUQLQJ XQVWDELOL]HG DSSURDFK

,Q DGGLWLRQ

LQ

6DIHJXDUGV LQFOXGH

W\SHV RI UXQZD\ DQG ZLQG FRQGLWLRQV DQG

VDIHJXDUGV

LQWHUUXSWLRQV RU GLVWUDFWLRQV

IRU

YDULRXV W\SHV RI DSSURDFKHV

FRQWDLQ

PLQLPL]H WKH SRWHQWLDO IRU LQDGYHUWHQW GHYLDWLRQ IURP

623V
$LUSODQH RSHUDWLQJ PDWWHUV LH W\SHUHODWHG

LQFOXGLQJ

VWDQGDUG

FDOOV

FRQVWLWXWH

WKH

UHIHUHQFH IRU FUHZ VWDQGDUGL]DWLRQ DQG SURYLGH WKH


ZRUNLQJ HQYLURQPHQW UHTXLUHG IRU HQKDQFHG DQG
HIILFLHQW FUHZ FRPPXQLFDWLRQ DQG FRRUGLQDWLRQ

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

6XSHUYLVLQJ WKH DXWRSLORW YHUWLFDO JXLGDQFH DQG

VFDQ

ODWHUDO JXLGDQFH DQG WKH DXWRWKUXVW RSHUDWLRQ


LH

RU

$LUEXV ,QGXVWULH DFNQRZOHGJHV WKDW YDULDWLRQV PD\

HQJDJHG DQG RI PRGH FKDQJHV WKURXJK PRGH

DZDUHQHVV

RI

PRGHV

EHLQJ

DUPHG

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  6WDQGDUG

RU

&DOOV

+DQG IO\LQJ WKH DLUFUDIW ZLWK RU ZLWKRXW IOLJKW


GLUHFWRU )' JXLGDQFH DQG ZLWK DQ DGDSWHG

8VH RI $XWRPDWLRQ

QDYLJDWLRQ GLVSOD\ HJ 526( RU $5& PRGH 

7KH

SLORW

QRW

IO\LQJ

31)

LV

UHVSRQVLEOH

:LWK KLJKHU OHYHOV RI DXWRPDWLRQ IOLJKW FUHZV DUH

IRU

RIIHUHG

PRQLWRULQJ WDVNV DQG IRU SHUIRUPLQJ WKH DFWLRQV


UHTXHVWHG E\ WKH 3) WKLV LQFOXGHV

DQ

LQFUHDVLQJ

VWUDWHJLHV

WR

QXPEHU

FKRRVH

IRU

RI

WKH

RSWLRQV
WDVN

WR

DQG
EH

DFFRPSOLVKHG

3HUIRUPLQJ WKH VWDQGDUG 31) WDVNV

7KH FRPSDQ\ 623V VKRXOG DFFXUDWHO\ GHILQH WKH


RSWLRQV DQG VWUDWHJLHV VHOHFWHG E\ WKH DLUOLQH IRU WKH

623 DFWLRQV DQG

)OLJKW GLUHFWRU DQG )06 PRGH VHOHFWLRQV DQG

YDULRXV IOLJKW SKDVHV DQG IRU WKH YDULRXV W\SHV RI


DSSURDFKHV

WDUJHW HQWULHV ZKHQ LQ PDQXDO IOLJKW

x
x

%ULHILQJ 1RWH   2SWLPXP 8VH RI $XWRPDWLRQ


0RQLWRULQJ WKH FXUUHQW VWDWXV RI WKH DLUFUDIW

SURYLGHV

DQG

$3)' $7+5 DQG )06

0RQLWRULQJ WKH 3) WR SURYLGH HIIHFWLYH EDFNXS

H[SDQGHG

LQIRUPDWLRQ

RQ

WKH

XVH

RI

6FRSH DQG 8VH RI 1RUPDO &KHFNOLVWV

DV UHTXLUHG WKLV LQFOXGHV ERWK IOLJKW DQG JURXQG


RSHUDWLRQ 

%ULHILQJ 1RWH

6WHULOH &RFNSLW 5XOH

  1RUPDO &KHFNOLVWV

SURYLGHV D

GHWDLOHG RYHUYLHZ RQ WKH VFRSH DQG XVH RI QRUPDO


FKHFNOLVWV

$GKHULQJ WR WKH 6WHULOH &RFNSLW UXOH GHILQHG LQ

7UDLQLQJ $VSHFWV

%ULHILQJ 1RWH  ,QWUD&RFNSLW &RPPXQLFDWLRQV


0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV

PD\ EH

PDQGDWHG E\ RSHUDWLRQDO DXWKRULWLHV HJ 86 )$5

'LVFLSOLQHG

3DUW  RU DGRSWHG SHU FRPSDQ\ SROLF\


$LUEXV

,QGXVWULH

6WHULOH

&RFNSLW

HQFRXUDJHV
UXOH

DGKHUHQFH

UHJDUGOHVV

RI

WR

XVH

RI

623V

DQG

QRUPDO

FKHFNOLVWV

VKRXOG EHJLQ GXULQJ WKH WUDQVLWLRQ WUDLQLQJ FRXUVH


EHFDXVH

WKH

KDELWV

DQG

URXWLQHV

DFTXLUHG

WUDQVLWLRQ WUDLQLQJ KDYH D ODVWLQJ HIIHFW

DSSOLFDEOH

QDWLRQDO UHTXLUHPHQWV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


3DJH 

GXULQJ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7UDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ SURYLGH D

,QFRUUHFW

&50

XQLTXH RSSRUWXQLW\ WR GLVFXVV WKH UHDVRQV IRU WKH

FURVVFKHFNLQJ

UXOHV

EDFNXS 

DQG

SURFHGXUHV

DQG

WR

GLVFXVV

WKH

FRQVHTXHQFHV RI IDLOLQJ WR FRPSO\ ZLWK WKHP

WHFKQLTXHV

HJ

DEVHQFH

RI

FUHZ FRRUGLQDWLRQ RU HIIHFWLYH

&RPSDQ\ SROLFLHV HJ UHJDUGLQJ VFKHGXOHV


FRVWV JRDURXQG DQG GLYHUVLRQ 

&RQYHUVHO\ DOORZLQJ D UHOD[HG DGKHUHQFH WR 623V


DQGRU D UHOD[HG XVH RI QRUPDO FKHFNOLVWV GXULQJ

LQLWLDO RU UHFXUUHQW VLPXODWRU WUDLQLQJ PD\ HQFRXUDJH


FRUUHVSRQGLQJ GHYLDWLRQV GXULQJ OLQH RSHUDWLRQV

2WKHU SROLFLHV HJ FUHZ GXW\ WLPH 


3HUVRQDO GHVLUHV RU FRQVWUDLQWV HJ VFKHGXOH
PLVVLRQ FRPSOHWLRQ 

)DFWRU ,QYROYHG LQ 'HYLDWLRQV IURP 623V

7R

HQVXUH

623V

LW

HIIHFWLYH

LV

FRPSOLDQFH

LPSRUWDQW

WR

ZLWK

XQGHUVWDQG

SXEOLVKHG
ZK\

SLORWV

&RPSODFHQF\ DQG
2YHUFRQILGHQFH

HJ

KLJK

WLPH

RQ

DLUFUDIW

W\SH 

LQWHQWLRQDOO\ RU LQDGYHUWHQWO\ GHYLDWH IURP UXOHV RU


VWDQGDUGV
,Q

PRVW

SURFHGXUH

7KHVH IDFWRUV PD\ EH XVHG WR DVVHVV FRPSDQ\


FDVHV

RI

WKDW

ZDV

GHYLDWLRQ

IURP

IROORZHG

LQ

623V

SODFH

RI

DQGRU

WKH

SHUVRQDO

H[SRVXUH

DQG

WR

GHYHORS

FRUUHVSRQGLQJ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI

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


623V VKRXOG LQFOXGH DQG HPSKDVL]H DVSHFWV WKDW

LQ GLVFXVVLQJ GHYLDWLRQV IURP 623V

DUH
,QDGHTXDWH
XQGHUVWDQG

NQRZOHGJH
WKH

UXOH

RI

RU

SURFHGXUH

IDLOXUH
RU

WR

&RPSDQ\

RU

DV

WUDLQLQJ

LQDSSURSULDWH RU LQVXIILFLHQW HPSKDVLV RQ 623V

VKRXOG

SURFHGXUH

RU

DFWLRQ

EHLQJ

,QVXIILFLHQW

HPSKDVLV

RQ

VWULFW

IUHTXHQWO\

LQ

DSSURDFKDQGODQGLQJ

DFWLRQ

HJ GXH WR TXDOLW\ RI ZRUGLQJ RU SKUDVLQJ UXOH


SHUFHLYHG

GXULQJ WUDLQLQJ 

LQYROYHG

DFFLGHQWV

DGKHUHQFH

WR

623V GXULQJ WUDQVLWLRQ DQG UHFXUUHQW WUDLQLQJ

SROLFLHV

SURJUDPV

WHFKQLFDO
OLQH

WUDLQLQJ

FKHFNV

DQG

DQG
OLQH

&50
DXGLWV

3URPRWH VWULFW DGKHUHQFH WR 623V DQG

,GHQWLI\ DQG DGGUHVV WKH UHDVRQV IRU LQWHQWLRQDO


RU LQDGYHUWHQW GHYLDWLRQV IURP 623V

,QVXIILFLHQW YLJLODQFH IDWLJXH 

'LVWUDFWLRQV HJ GXH WR LQWUDFRFNSLW DFWLYLW\ 

$VVRFLDWHG %ULHILQJ 1RWHV

,QWHUUXSWLRQV HJ GXH WR $7& FRPPXQLFDWLRQ 

7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG

7DVN VDWXUDWLRQ LH DEVHQFH RI PXOWLWDVNLQJ

DORQJ ZLWK WKH DERYH JHQHUDO LQIRUPDWLRQ LQ RUGHU WR


UHYLVLW

DELOLW\ RU WDVN RYHUORDG 

WKH

DVSHFWV

DVVRFLDWHG

ZLWK

  2SWLPXP 8VH RI $XWRPDWLRQ

VLWXDWLRQV 

  2SHUDWLRQV *ROGHQ 5XOHV

5HGXFHG DWWHQWLRQ WXQQHO YLVLRQ LQ DEQRUPDO

  6WDQGDUG &DOOV

  8VH RI 1RUPDO &KHFNOLVWV

,QFRUUHFW PDQDJHPHQW RI SULRULWLHV HJ ODFN RI


GHFLVLRQPDNLQJ

DOO

RSHUDWLQJ SURFHGXUHV

PRGHO

IRU

WLPHFULWLFDO

RU KLJKZRUNORDG FRQGLWLRQV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


3DJH 

VWDQGDUG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

x
x

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  $SSURDFK DQG *RDURXQG %ULHILQJV


  +) ,VVXHV LQ $SSURDFK DQG /DQGLQJ

&RPPHUFLDO

$LU

WUDQVSRUW

$HURSODQHV $SSHQGL[  

$LUFUDIW 2SHUDWLRQV 3$16236 'RF  

1R  DSSOLFDEOH 1RY 


RI

$OO:HDWKHU



&RPPXQLFDWLRQV

DQG

)$$ $&  &UHZ 5HVRXUFH 0DQDJHPHQW

)$$

$&



$GYDQFH

4XDOLILFDWLRQ

)$$

$&



6WDQGDUG

2SHUDWLQJ

)$$

$&



'LVSDWFK

5HVRXUFH

-$5236  DQG DVVRFLDWHG ,QWHUSUHWDWLYH


IRU 2SHUDWLRQV 0DQXDOV

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO

-$5236  DQG DVVRFLDWHG $SSHQGL[ 


$FFHSWDEOH 0HDQV RI &RPSOLDQFH $0& DQG

'RF  

$&

DQG ([SODQDWRU\ 0DWHULDO ,(0 *HQHUDO 5XOHV

2SHUDWLRQV

'RF  

)$$

0DQDJHPHQW 7UDLQLQJ

9ROXPH , )OLJKW SURFHGXUHV 3RVW $PHQGPHQW

0DQXDO

0HPEHUV

3URFHGXUHV IRU )OLJKW 'HFN &UHZPHPEHUV

,&$2 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV

2SHUDWLQJ

&UHZ

7UDLQLQJ

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,

,&$2

6WDQGDUG

7UDLQLQJ

5HJXODWRU\ 5HIHUHQFHV

)OLJKWGHFN

)OLJKW $WWHQGDQWV

IRU

&RRUGLQDWLRQ EHWZHHQ )OLJKW &UHZPHPEHUV DQG

  &50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ

,QWHUQDWLRQDO



'UDIW 

$FFLGHQWV

$&

3URFHGXUHV

$FFLGHQWV

)$$

,QWHUSUHWDWLYH DQG ([SODQDWRU\ 0DWHULDO ,(0


2SHUDWLRQV 0DQXDO VWUXFWXUH DQG FRQWHQWV

)$5  5HVSRQVLELOLW\ DQG DXWKRULW\ RI WKH


SLORWLQFRPPDQG HPHUJHQF\ DXWKRULW\ 

)$5  3UHSDUDWLRQ RI 0DQXDOV

)$5  &RQWHQWV RI 0DQXDOV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

2SWLPXP8VHRI$XWRPDWLRQ

+LJKHU OHYHOV RI DXWRPDWLRQ SURYLGH IOLJKW FUHZV ZLWK


DQ LQFUHDVLQJ QXPEHU RI RSWLRQV DQG VWUDWHJLHV WR
FKRRVH IRU WKH WDVN WR EH DFFRPSOLVKHG
7KH DSSOLFDEOH )&20 SURYLGHV VSHFLILF LQIRUPDWLRQ
IRU HDFK DLUFUDIW W\SH

,QWURGXFWLRQ

2SWLPXP XVH RI DXWRPDWLRQ UHIHUV WR WKH LQWHJUDWHG


DQG FRRUGLQDWHG XVH RI WKH IROORZLQJ V\VWHPV
x $XWRSLORW  IOLJKW GLUHFWRU $3  )' 
x $XWRWKURWWOHDXWRWKUXVW $7+5  DQG
x )OLJKW PDQDJHPHQW V\VWHP )06 

6WDWLVWLFDO 'DWD

(UURUV LQ XVLQJ DQG PDQDJLQJ WKH DXWRPDWLF IOLJKW


V\VWHP DQG WKH ODFN RI DZDUHQHVV RI WKH RSHUDWLQJ
PRGHV DUH FDXVDO IDFWRUV LQ PRUH WKDQ   RI
DSSURDFKDQGODQGLQJ DFFLGHQWV

7KUHH JHQHUDWLRQV RI IOLJKW JXLGDQFH V\VWHPV DUH


FXUUHQWO\ LQ DLUOLQH VHUYLFH SURYLGLQJ GLIIHUHQW OHYHOV
RI LQWHJUDWLRQ DQG DXWRPDWLRQ
x

$%% DQG $ ))&& IDPLOLHV


 3DUWLDO LQWHJUDWLRQ SDLULQJ RI WKH $3)' DQG
$7+5 PRGHV
 6HOHFWHG YHUWLFDO DQG ODWHUDO PRGHV DQG
 /DWHUDO QDYLJDWLRQ RQO\ LH LQHUWLDO
QDYLJDWLRQ V\VWHP >,16@ RU )06*36 

$3  $7+5 ,QWHJUDWLRQ

,QWHJUDWHG $3$7+5 V\VWHPV IHDWXUH DQ


DVVRFLDWLRQ SDLULQJ RI $3 SLWFK PRGHV HOHYDWRU
FRQWURO DQG $7+5 PRGHV WKURWWOHWKUXVW OHYHUV
FRQWURO 
$Q LQWHJUDWHG $3$7+5 RSHUDWHV LQ WKH VDPH ZD\
DV D KXPDQ SLORW
x (OHYDWRU LV XVHG WR FRQWURO SLWFK DWWLWXGH
DLUVSHHG YHUWLFDO VSHHG DOWLWXGH
IOLJKWSDWKDQJOH YHUWLFDO QDYLJDWLRQ SURILOH RU WR
WUDFN D JOLGHVORSH EHDP
x 7KURWWOHWKUXVW OHYHUV DUH XVHG WR PDLQWDLQ D
JLYHQ WKUXVW RU D JLYHQ DLUVSHHG

$ DQG $ IDPLOLHV


 )XOO LQWHJUDWLRQ RI $3)' DQG $7+5
PRGHV
 6HOHFWHG YHUWLFDO DQG ODWHUDO PRGHV DQG
 9HUWLFDO DQG ODWHUDO QDYLJDWLRQ )06 
$  $  $ IDPLOLHV
 )XOO LQWHJUDWLRQ RI $3)'  $7+5 )06
PRGHV )0*6 
 6HOHFWHG YHUWLFDO DQG ODWHUDO PRGHV DQG
 0DQDJHG YHUWLFDO DQG ODWHUDO QDYLJDWLRQ LQ DOO
IOLJKW SKDVHV

7KURXJKRXW WKH IOLJKW WKH SLORWV REMHFWLYH LV WR IO\


x 3HUIRUPDQFH VHJPHQWV DW FRQVWDQW WKUXVW RU DW
LGOH HJ WDNHRII FOLPE RU GHVFHQW  RU
x 7UDMHFWRU\ VHJPHQWV DW FRQVWDQW VSHHG HJ
FUXLVH RU DSSURDFK 

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

'HSHQGLQJ

RQ

WKH

WDVN

WR

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

EH

DFFRPSOLVKHG

7KH )&8 FRQVWLWXWHV WKH PDLQ LQWHUIDFH EHWZHHQ WKH

PDLQWDLQLQJ WKH DLUVSHHG LV DVVLJQHG HLWKHU WR WKH

SLORW

$3

JXLGDQFH LH IRU LPPHGLDWH JXLGDQFH 

HOHYDWRUV

RU

WR

OHYHUV  DV VKRZQ LQ

WKH

$7+5

WKURWWOHVWKUXVW

7DEOH 

DQG

WKH

DXWRIOLJKW

V\VWHP

IRU

VKRUWWHUP

7KH )06 PXOWLSXUSRVH FRQWURO DQG GLVSOD\ XQLW


0&'8 FRQVWLWXWHV WKH PDLQ LQWHUIDFH EHWZHHQ WKH
$7+5

SLORW

$3

DQG

WKH

DXWRIOLJKW

V\VWHP

IRU

ORQJWHUP

JXLGDQFH LH IRU WKH FXUUHQW DQG VXEVHTXHQW IOLJKW


SKDVHV 

7KURWWOHV 

2Q DLUFUDIW HTXLSSHG ZLWK DQ )06 IHDWXULQJ ERWK

(OHYDWRUV

ODWHUDO DQG YHUWLFDO QDYLJDWLRQ WZR W\SHV RI JXLGDQFH

7KUXVW OHYHUV

PRGHV DQG DVVRFLDWHG WDUJHWV DUH DYDLODEOH

3HUIRUPDQFH

7KUXVW RU LGOH

6SHHG

6HOHFWHG JXLGDQFH

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

9HUWLFDO SURILOH

7UDMHFWRU\

6SHHG
6HJPHQW

)06 PDQDJHG JXLGDQFH


WKH DLUFUDIW LV JXLGHG DORQJ WKH )06 ODWHUDO
DQG YHUWLFDO IOLJKW SODQ VSHHG SURILOH DQG

$OWLWXGH

DOWLWXGH WDUJHWV DV PDQDJHG E\ WKH )06


*OLGH VORSH

DFFRXQWLQJ

IRU

DOWLWXGH

DQG

VSHHG

FRQVWUDLQWV DV DSSOLFDEOH 
7DEOH 

8QGHUVWDQGLQJ $XWRPDWHG 6\VWHPV

$3 $7+5 0RGHV ,QWHJUDWLRQ

8QGHUVWDQGLQJ

'HVLJQ 2EMHFWLYH

V\VWHP

EXW

+RZ LV WKH V\VWHP GHVLJQHG "

IOLJKW

:K\ LV WKH V\VWHP GHVLJQHG WKLV ZD\ "

5HOLHYLQJ WKH 3) IURP URXWLQH KDQGOLQJ WDVNV

+RZ GRHV WKH V\VWHP LQWHUIDFH DQG FRPPXQLFDWH

$)6

LV

WKURXJKRXW

WR

SURYLGH

WKH

IOLJKW

DVVLVWDQFH
ZLWKLQ

WKH

WR

WKH

FUHZ

QRUPDO

HQYHORSH  E\

DQG

WKXV

DOORZLQJ

WLPH

DQG

UHVRXUFHV

ZLWK WKH SLORW "

WR

HQKDQFH KLVKHU VLWXDWLRQDO DZDUHQHVV RU IRU

SUREOHP VROYLQJ WDVNV DQG

DXWRPDWHG

DQVZHULQJ WKH IROORZLQJ IXQGDPHQWDO TXHVWLRQV

7KH GHVLJQ REMHFWLYH RI WKH DXWRPDWLF IOLJKW V\VWHP

DQ\

SDUWLFXODUO\ WKH $)6 DQG )06 LGHDOO\ ZRXOG UHTXLUH

+RZ

WR

RSHUDWH

WKH

V\VWHP

LQ

QRUPDO

DQG

DEQRUPDO VLWXDWLRQV "

3URYLGLQJ WKH 3) ZLWK DGHTXDWH DWWLWXGH DQG


IOLJKW SDWK JXLGDQFH WKURXJK WKH )' IRU KDQG

7KH IROORZLQJ DVSHFWV VKRXOG EH IXOO\ XQGHUVWRRG IRU

IO\LQJ

DQ RSWLPXP XVH RI DXWRPDWLRQ

7KH $)6 SURYLGHV JXLGDQFH WR FDSWXUH DQG PDLQWDLQ


WKH VHOHFWHG WDUJHWV DQG WKH GHILQHG IOLJKW SDWK LQ
DFFRUGDQFH

ZLWK

WKH

PRGHV

HQJDJHG

DQG

,QWHJUDWLRQ

RI

$3)'

DQG

$7+5

PRGHV

LH SDLULQJ RI PRGHV 

WKH

WDUJHWV VHW E\ WKH IOLJKW FUHZ RQ WKH )&8 RU RQ WKH


)06 &'8

0RGH WUDQVLWLRQ DQG UHYHUVLRQ VHTXHQFHV

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

(IIHFWLYH PRQLWRULQJ RI WKHVH FRQWUROV DQG GLVSOD\V

3LORWV\VWHP LQWHUIDFHV IRU

3LORWWRV\VWHP

FRPPXQLFDWLRQ

LH

SURPRWHV DQG LQFUHDVHV IOLJKW FUHZ DZDUHQHVV RI

IRU

PRGHV HQJDJHPHQW DQG WDUJHW VHOHFWLRQV 

7KH VWDWXV RI WKH V\VWHP LH PRGHV EHLQJ


HQJDJHG RU DUPHG  DQG

DQG

6\VWHPWRSLORW IHHGEDFN LH IRU PRGHV DQG

(IIHFWLYH PRQLWRULQJ RI FRQWUROV DQG GLVSOD\V DOVR

,Q WKH FRQWH[W RI WKLV %ULHILQJ 1RWH WKH LQWHUIDFH DQG


FRPPXQLFDWLRQ

EHWZHHQ

7KH DYDLODEOH JXLGDQFH LH IRU IOLJKW SDWK DQG


VSHHG FRQWURO 

WDUJHWV FURVVFKHFN 

WKH

IOLJKW

FUHZ

DQG

HQDEOHV WKH SLORW WR SUHGLFW DQG DQWLFLSDWH WKH HQWLUH

WKH

VHTXHQFH

V\VWHP QHHG WR EH HPSKDVLVHG

WKURXJKRXW

RI

IOLJKW

IOLJKW

PRGHV

SKDVHV

DQQXQFLDWLRQV

LH

WKURXJKRXW

)0$
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
DQ

H[SHFWDWLRQ

WKHUHIRUH

PXVW

RI

WKH

KDYH

DLUFUDIW
LQ

PLQG

UHDFWLRQ
WKH

2SWLPXP

DQG

IROORZLQJ

:KDW GR , ZDQW WKH DLUFUDIW WR IO\ QRZ "

:KDW GR , ZDQW WR IO\ QH[W "

UHTXLUHV

OHYHOV RI DXWRPDWLRQ DUH DYDLODEOH WR SHUIRUP D JLYHQ


WDVN

:KLFK PRGH GLG , HQJDJH DQG ZKLFK WDUJHW GLG

,V WKH DLUFUDIW IROORZLQJ WKH LQWHQGHG YHUWLFDO DQG

)06 PRGHV DQG JXLGDQFH RU

6HOHFWHG PRGHV DQG JXLGDQFH

ODWHUDO IOLJKW SDWK DQG WDUJHWV "


7KH FRUUHFW OHYHO RI DXWRPDWLRQ GHSHQGV RQ

:KLFK PRGH GLG , DUP DQG ZKLFK WDUJHW GLG , SUH

VHW IRU WKH DLUFUDIW WR IO\ QH[W "

7KH NH\ UROH RI WKH IROORZLQJ FRQWUROV DQG GLVSOD\V


WKHUHIRUH PXVW EH XQGHUVWRRG

)&8 PRGH VHOHFWLRQNH\V WDUJHWVHWWLQJ NQREV

VKRUWWHUP WDFWLFDO WDVN RU

ORQJWHUP VWUDWHJLF WDVN

7KH IOLJKW SKDVH

HQURXWH

)06 0&'8 NH\ERDUG OLQHVHOHFW NH\V GLVSOD\

WHUPLQDO DUHD RU

DSSURDFK DQG

)OLJKW PRGHV DQQXQFLDWRU )0$ DQQXQFLDWLRQV

RQ 3)' DQG

7KH WDVN WR EH SHUIRUPHG

DQG GLVSOD\ ZLQGRZV

SDJHV DQG PHVVDJHV

VWULFW

2Q KLJKO\ DXWRPDWHG DQG LQWHJUDWHG DLUFUDIW VHYHUDO

, VHW IRU WKH DLUFUDIW WR IO\ QRZ "

DXWRPDWLRQ

8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU


WKH WDVN

7KLV LPSOLHV DQVZHULQJ DOVR WKH IROORZLQJ TXHVWLRQV 

RI

SKLORVRSK\ DQG WR WKH IROORZLQJ UXOHV RI RSHUDWLRQ

TXHVWLRQV

XVH

DGKHUHQFH WR WKH GHVLJQ SKLORVRSK\ DQG RSHUDWLQJ

3)' DQG 1' GDWD

7KH WLPH DYDLODEOH

QRUPDO VHOHFWLRQ RU HQWU\ RU

ODVWPLQXWH FKDQJH

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

SUHYDLOLQJ

FRQGLWLRQV

FKHFNLQJ WKH FRUUHVSRQGLQJ DQQXQFLDWLRQ RU GDWD RQ

NQRZOHGJH

DQG

GHSHQGLQJ

H[SHULHQFH

RI

RQ

WKH

KLVKHU

DLUFUDIW

DQG

NH\V

VKRXOG

EH

FRQILUPHG

E\

FURVV

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

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

VXFFHVVLRQ RU LQ FRPELQDWLRQ HJ )06

RI

(QKDQFHG

LQ

GLVSOD\V

ODWHUDO

WKH

UHIHUHQFH

SURPRWHV

JXLGDQFH WRJHWKHU ZLWK VHOHFWHG YHUWLFDO JXLGDQFH

DZDUHQHVV RI 

DV EHVW VXLWHG IRU WKH IOLJKW SKDVH DQG SUHYDLOLQJ

FRQVWUDLQWV

JXLGDQFH

PRGHV

WR

DQG

WKH

EHLQJ

DERYH

LQFUHDVHV

DUPHG

FRQWUROV

WKH

IOLJKW

RU

DQG
FUHZ

7KH VWDWXV RI WKH V\VWHP LH PRGHV EHLQJ


DUPHG RU HQJDJHG 

7KH 3) DOZD\V UHWDLQ WKH DXWKRULW\ DQG FDSDELOLW\ WR


VHOHFW WKH PRVW DSSURSULDWH OHYHO RI DXWRPDWLRQ DQG

7KH DYDLODEOH JXLGDQFH LH IRU IOLJKW SDWK DQG


VSHHG FRQWURO 

JXLGDQFH IRU WKH WDVN WKLV LQFOXGHV

$GRSWLQJ D PRUH GLUHFW OHYHO RI DXWRPDWLRQ E\

7KLV HQDEOHV WKH IOLJKW FUHZ WR SUHGLFW DQG DQWLFLSDWH

UHYHUWLQJ

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 

IURP

)06PDQDJHG

JXLGDQFH

6HOHFWLQJ D PRUH DSSURSULDWH ODWHUDO RU YHUWLFDO


PRGH RU

0RQLWRU DXWRPDWLRQ DW DOO WLPHV

5HYHUWLQJ WR KDQG IO\LQJ ZLWK RU ZLWKRXW )'


JXLGDQFH
FRQWURO

ZLWK

RI

RU

ZLWKRXW

DLUFUDIW

YHUWLFDO

$7+5

IRU

WUDMHFWRU\

GLUHFW

7KH

ODWHUDO

XVH

WUDMHFWRU\ DQG WKUXVW

DQG

WKH

)06

&'8

DUH

WKH

SULPH

DQG WR VHW WDUJHWV 

FRPPXQLFDWH

WKDW

WKH

DLUFUDIW

ZLWK

WKH

IOLJKW

FUHZ

DQG

$7+5

PRGH

RQ

WKH

)0$

2EVHUYLQJ DQG DQQRXQFLQJ WKH UHVXOW RI DQ\

6XSHUYLVLQJ WKH UHVXOWLQJ $3)' JXLGDQFH DQG

V\VWHPV

KDYH

FRUUHFWO\

DOWLWXGH YHUWLFDO VSHHG KHDGLQJ RU WUDFN 

WR

%H UHDG\ WR WDNH RYHU LI UHTXLUHG

3)' )0$ VSHHG VFDOH DQG DOWLWXGH VFDOH 

EH

DWWLWXGH DQG EDQN DQJOH VSHHG DQG VSHHG WUHQG

DFFHSWHG WKH PRGH VHOHFWLRQV DQG WDUJHW HQWULHV

PXVW

$7+5 RSHUDWLRQ RQ WKH 3)' DQG 1' SLWFK

7KH 3)' DQG 1' DUH WKH SULPH LQWHUIDFHV IRU WKH
FRQILUP

$)6

UHODWHG 3)' DQGRU 1' VFDOHV DQG

WKH DLUFUDIW V\VWHPV LH WR DUP RU HQJDJH PRGHV

WR

WKH

WDUJHW VHWWLQJ RU FKDQJH RQ WKH )&8 RQ WKH

LQWHUIDFHV IRU WKH IOLJKW FUHZ WR FRPPXQLFDWH ZLWK

DLUFUDIW

RI

LH DUPLQJ RU HQJDJHPHQW 

.QRZ \RXU $YDLODEOH *XLGDQFH DW DOO WLPHV


)&8

RSHUDWLRQ

&KHFNLQJ DQG DQQRXQFLQJ WKH VWDWXV RI $3)'


PRGHV

7KH

DQG

PRQLWRUHG DW DOO WLPHV E\

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

1' 

ODWHUDO

6HOHFWHG JXLGDQFH RU KDQG IO\LQJ WRJHWKHU ZLWK WKH


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

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,I WKH DLUFUDIW GRHV QRW IROORZ WKH LQWHQGHG IOLJKW SDWK

,I HQJDJHG GLVFRQQHFW WKH $3 DQGRU $7+5 XVLQJ

WKH DVVRFLDWHG LQVWLQFWLYH GLVFRQQHFW SXVK EXWWRQ V 


DQGRU

WR

PDQXDO

XQGHUVWDQGLQJ

RI

PRGH

WUDQVLWLRQV

,QDGHTXDWH WDVN VKDULQJ DQGRU &50 SUDFWLFHV


SUHYHQWLQJ WKH 3) IURP PRQLWRULQJ WKH IOLJKW SDWK

WR UHYHUW WR KDQG IO\LQJ ZLWK )' JXLGDQFH RU ZLWK


UHIHUHQFH WR UDZ GDWD

,QVXIILFLHQW

DQG PRGH UHYHUVLRQV LH PRGH FRQIXVLRQ 

FKHFN WKH $3 DQG $7+5 HQJDJHPHQW VWDWXV

DQG DLUVSHHG

WKUXVW

FRQWURO

HJ

ERWK

,Q

XQDQWLFLSDWHG VLWXDWLRQ RU DEQRUPDO FRQGLWLRQ 

PDQDJHPHQW

KDQG

IO\LQJ

WKH

)'

FRPPDQGV

VKRXOG

EH

IROORZHG RWKHUZLVH WKH )' EDUV VKRXOG EH FOHDUHG

IURP GLVSOD\

SLORWV
RI

EHLQJ

HQJDJHG

DXWRPDWLRQ

RU

LQ

LQ

WKH

VROYLQJ

DQ

(QJDJLQJ WKH $3 ZLWK WKH DLUFUDIW LQ DQ RXWRIWULP


FRQGLWLRQ FRQYHQWLRQDO DLUFUDIW RQO\ 

$3 DQG $7+5 PXVW QRW EH RYHUULGGHQ PDQXDOO\

)DLOXUH WR DUP WKH DSSURDFK PRGH DQGRU

)DLOXUH WR VHW WKH FRUUHFW ILQDO DSSURDFK FRXUVH

,I $3 RU $7+5 RSHUDWLRQ QHHGV WR EH RYHUULGGHQ


LH IROORZLQJ D UXQDZD\ RU KDUGRYHU  LPPHGLDWHO\
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

$Q XQDQWLFLSDWHG FKDQJH RU

$Q DEQRUPDO RU HPHUJHQF\ FRQGLWLRQ

,QDGYHUWHQW DUPLQJ RU HQJDJHPHQW RI DQ LQFRUUHFW


PRGH

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

)DLOXUH WR YHULI\ WKH PRGH DUPHG RU HQJDJHG E\

HQJDJHG WKURXJKRXW WKH IOLJKW HVSHFLDOO\ LQ PDUJLQDO

UHIHUHQFH WR WKH )0$ 

ZHDWKHU

6HOHFWLRQ RI DQ LQFRUUHFW WDUJHW DOWLWXGH VSHHG


KHDGLQJ RQ WKH )&8 DQG IDLOXUH WR FRQILUP WKH
VHOHFWHG

WDUJHW

RQ

WKH

3)'

DQGRU

1'

ILQDO

ZKHQ

RSHUDWLQJ

LQWR

DQ

PRUH DWWHQWLRQ WR $7& FRPPXQLFDWLRQV DQG WR RWKHU


DLUFUDIW SDUWLFXODUO\ LQ FRQJHVWHG WHUPLQDO DUHDV DQG
DW KLJKGHQVLW\ DLUSRUWV

6HOHFWLRQ RI WKH )&8 DOWLWXGH WR DQ\ DOWLWXGH EHORZ


WKH

RU

8VLQJ $3 DQG $7+5 DOVR HQDEOHV IOLJKW FUHZ WR SD\

DV

DSSOLFDEOH 

FRQGLWLRQV

XQIDPLOLDU DLUSRUW

DSSURDFK

LQWHUFHSW

DOWLWXGH

GXULQJ

$3 DQG $7+5 VKRXOG EH XVHG GXULQJ D JRDURXQG

DSSURDFK

DQG PLVVHGDSSURDFK WR UHGXFH ZRUNORDG

,QVHUWLRQ RI DQ HUURQHRXV ZD\SRLQW

$UPLQJ RI WKH ODWHUDO QDYLJDWLRQ PRGH ZLWK DQ

)06 ODWHUDO QDYLJDWLRQ VKRXOG EH XVHG WR UHGXFH


ZRUNORDG DQG ULVN RI &),7 GXULQJ JRDURXQG LI 

LQFRUUHFW DFWLYH ZD\SRLQW LH DQ LQFRUUHFW 72


ZD\SRLQW 

IOLJKW

PLVVHGDSSURDFK

SURFHGXUH

LQFOXGHG LQ WKH )06 IOLJKW SODQ DQG

3UHRFFXSDWLRQ ZLWK )06 SURJUDPPLQJ GXULQJ D


FULWLFDO

$SSOLFDEOH

SKDVH

ZLWK

FRQVHTXHQW

ORVV

)06 QDYLJDWLRQ DFFXUDF\ KDV EHHQ FRQILUPHG

RI

VLWXDWLRQDO DZDUHQHVV

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

LV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH VDIH DQG HIILFLHQW XVH DQG PDQDJHPHQW RI $3

$QQRXQFH

DOO

FKDQJHV

LQ

DFFRUGDQFH

ZLWK

6WDQGDUG &DOOV GHILQHG LQ 623V

$7+5 DQG )06 DUH EDVHG RQ WKH IROORZLQJ WKUHH


VWHS WHFKQLTXH

$QWLFLSDWH

3)'

8QGHUVWDQG V\VWHP RSHUDWLRQ DQG UHVXOWV RI


DQ\ DFWLRQ EH DZDUH RI PRGHV EHLQJ DUPHG
RU

HQJDJHG

VHHN

FRQFXUUHQFH

RI

'XULQJ GHVFHQW HQVXUH WKDW VHOHFWHG DOWLWXGH LV

RWKHU

QRW WR EHORZ WKH 0($ RU 06$ RU EH DZDUH RI WKH

FUHZPHPEHU LI GHHPHG QHFHVVDU\ 

DSSOLFDEOH PLQLPXPYHFWRULQJDOWLWXGH 
'XULQJ ILQDO DSSURDFK VHW JRDURXQG DOWLWXGH RQ

([HFXWH

)&8 LH WKH 0'$+ RU '$+ VKRXOG QRW EH VHW 

3HUIRUP DFWLRQ RQ )&8 RU RQ )06 &'8 DQG

&RQILUP

&URVVFKHFN

DQG

DQQRXQFH

DUPLQJ

RU

FLUFOLQJ

7KH IROORZLQJ UXOHV DQG UHFRPPHQGDWLRQV VKRXOG EH

VWDUWLQJ

WKH

DSSURDFK

FDQ

EH

SUHSDUHG

RQ

WKH

,Q FDVH RI D URXWLQJ FKDQJH HJ ',5 72  FURVV

72 ZD\SRLQW LV QRW DOUHDG\ EHKLQG WKH DLUFUDIW 

%HIRUH HQJDJLQJ WKH $3 PDNH VXUH WKDW


0RGHV

HQJDJHG

IRU

)'

JXLGDQFH

&DXWLRQ

LV

HVVHQWLDO

GXULQJ

GHVFHQW

LQ

PRXQWDLQRXV DUHDV HQVXUH WKDW WKH QHZ WUDFN

FKHFN

DQG DVVLJQHG DOWLWXGH DUH QRW EHORZ WKH VHFWRU

)0$ DQQXQFLDWLRQV DUH WKH FRUUHFW PRGHV


IRU WKH LQWHQGHG IOLJKW SKDVH DQG WDVN

VDIH DOWLWXGH

6HOHFW WKH DSSURSULDWH PRGH V  DV UHTXLUHG

,I XQGHU UDGDU YHFWRUV EH DZDUH RI WKH VHFWRU


PLQLPXP YHFWRULQJDOWLWXGH

DQG

,I QHFHVVDU\ WKH VHOHFWHG KHDGLQJ PRGH FDQ EH

&RPPDQG EDUV GR QRW VKRZV ODUJH RUGHUV

XVHG ZLWK UHIHUHQFH WR QDYDLGV UDZ GDWD ZKLOH

LI ODUJH FRPPDQGV DUH JLYHQ PDLQWDLQ KDQG

YHULI\LQJ

IO\LQJ WR FHQWHU WKH EDUV EHIRUH HQJDJLQJ

(QJDJLQJ WKH $3 ZKLOH ODUJH FRPPDQGV DUH


UHTXLUHG WR DFKLHYH WKH LQWHQGHG IOLJKW SDWK
PD\

UHVXOW

LQ

WKH

$3

RYHUVKRRWLQJ

WKH

HQJDJHPHQW

RI

PRGHV  DQGRU

)06

&'8

DQG

1'

DV

FOHDULQJ DQ XQGXH LQWHUPHGLDWH ZD\SRLQW RU

SHUIRUPLQJ D ',5 72 >GHVLUHG 72 ZD\SRLQW@

0RQLWRU WKH FRUUHFW LQWHUFHSWLRQ RI WKH )06 ODWHUDO

3)'1' GDWD LH IRU VHOHFWHG WDUJHWV  DQG

E\

UHIHUHQFH

WKH

WKH

E\ HLWKHU

$IWHU HDFK DFWLRQ RQ )&8 YHULI\ WKH UHVXOW RI WKLV

WR

RQ

FRUUHFW WKH GHVLUHG 72 ZD\SRLQW FDQ EH UHVWRUHG

DFWLRQ RQ
RU

UHTXHVWLQJ

,I WKH GLVSOD\HG 72 ZD\SRLQW RQ WKH 1' LV QRW

IXQFWLRQ

DUPLQJ

DQGRU

DSSOLFDEOH 

SXVK EXWWRQ LV WKH FRUUHFW RQH IRU WKH GHVLUHG

IRU

URXWH

%HIRUH DUPLQJ WKH 1$9 PRGH HQVXUH WKDW WKH


GLVSOD\HG

%HIRUH DQ\ DFWLRQ RQ )&8 FKHFN WKDW WKH NQRE RU

LH

QHZ

FRUUHFW DFWLYH ZD\SRLQW LH 72 ZD\SRLQW LV

LQWHQGHG YHUWLFDO WDUJHW RU ODWHUDO WDUJHW

)0$

WKH

FRQILUPDWLRQ IURP $7&

$3

EHIRUH

',5 72 LH PDNLQJ VXUH WKDW WKH LQWHQGHG

WHFKQLTXH

DUULYDO

FKHFN WKH QHZ 72 ZD\SRLQW EHIRUH DFWLYDWLQJ WKH

FRQVLGHUHG WR VXSSRUW WKH LPSOHPHQWDWLRQ RI WKLV

IRU

VHFRQGDU\ IOLJKW SODQ DV DQWLFLSDWHG

&'8 

)06

$Q DOWHUQDWLYH DUULYDO URXWLQJ DQRWKHU UXQZD\ RU

RQ )0$ 3)' DQGRU 1' VFDOHV RU )06

3UHSDUH
GHVFHQW

HQJDJHPHQW RI PRGHV DQG WDUJHWV VHOHFWLRQV

:KHQ FKDQJLQJ WKH VHOHFWHG DOWLWXGH RQ )&8


FURVVFKHFN WKH VHOHFWHG DOWLWXGH LQGLFDWLRQ RQ

DLUFUDIW

IOLJKW

SDWK

IOLJKW SODQ

DQG

DLUVSHHG UHVSRQVH

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,Q FDVH RI D ODWH URXWLQJ RU UXQZD\ FKDQJH

GHVLUHG

IOLJKW

UHFRPPHQGHG

KHVLWDWH

WR

SKDVH HJ LQ WHUPLQDO DUHD RQ ILQDO DSSURDFK RU


JRDURXQG

LV

QRW

UHFRPPHQGHG

H[FHSW

SDWK

UHYHUW

DQGRU
WR

DLUVSHHG

PRUH

GR

GLUHFW

QRW

OHYHO

RI

DXWRPDWLRQ

5HSURJUDPPLQJ WKH )06 GXULQJ D FULWLFDO IOLJKW

UHYHUW IURP )06PDQDJHG PRGHV WR VHOHFWHG

WR

PRGHV

DFWLYDWH WKH VHFRQGDU\ IOLJKW SODQ LI SUHSDUHG RU

RU

IRU VHOHFWLQJ D QHZ DSSURDFK

3ULRULW\ WDVNV DUH LQ WKDW RUGHU 

$W DQ\ WLPH LI WKH DLUFUDIW GRHV QRW IROORZ WKH

D UHYHUVLRQ WR $3 VHOHFWHG PRGHV DQG UDZ GDWD LV

GLVFRQQHFW $3 DQG IROORZ )' JXLGDQFH LI


FRUUHFW 

KRUL]RQWDO DQG YHUWLFDO IOLJKW SDWK FRQWURO

RU

DOWLWXGH DQG WUDIILF DZDUHQHVV DQG

$7& FRPPXQLFDWLRQV

GLVHQJDJH )' VHOHFW )39 DV DYDLODEOH DQG


KDQG IO\ WKH DLUFUDIW XVLQJ UDZ GDWD RU YLVXDOO\
LI LQ 90& 

DQGRU

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

,Q

FDVH

RI

$3

XQFRPPDQGHG

6XPPDU\ RI NH\ SRLQWV

GLVFRQQHFWLRQ

WKH VHFRQG $3 VKRXOG EH HQJDJHG LPPHGLDWHO\ WR


UHGXFH 3)V ZRUNORDG LH RQO\ GXDO RU PXOWLSOH

)RU

IDLOXUHV PD\ DIIHFW ERWK $3V VLPXOWDQHRXVO\ 

,I FOHDUHG WR H[LW D KROGLQJ SDWWHUQ RQ D UDGDU

YHFWRU WKH KROGLQJ H[LW SURPSW VKRXOG EH SUHVVHG


RU

WKH

KROGLQJ

SDWWHUQ

FOHDUHG

WR

DOORZ

XVH

RI

DXWRPDWLRQ

WKH

IROORZLQJ

8QGHUVWDQGLQJ

WKH

LQWHJUDWLRQ

RI

$3)'

DQG

$7+5 PRGHV LH SDLULQJ RI PRGHV 

WKH

FRUUHFW VHTXHQFLQJ RI WKH )06 IOLJKW SODQ

RSWLPXP

VKRXOG EH SURPRWHG

8QGHU UDGDU YHFWRUV ZKHQ LQWHUFHSWLQJ WKH ILQDO

8QGHUVWDQGLQJ DOO PRGH WUDQVLWLRQ DQG UHYHUVLRQ


VHTXHQFHV

DSSURDFK FRXUVH LQ D VHOHFWHG KHDGLQJ RU WUDFN

PRGH LH QRW LQ 1$9 PRGH  IOLJKW FUHZ VKRXOG


HQVXUH WKDW )06 IOLJKW SODQ VHTXHQFHV QRUPDOO\

8QGHUVWDQGLQJ SLORWV\VWHP LQWHUIDFHV IRU

E\ FKHFNLQJ WKDW WKH 72 ZD\SRLQW LV FRUUHFW RQ

(QVXULQJ WKDW )06 IOLJKW SODQ VHTXHQFHV FRUUHFWO\


HQJDJH WKH 1$9 PRGH LQ FDVH RI D JRDURXQG

,I )06 IOLJKW SODQ GRHV QRW VHTXHQFH FRUUHFWO\

WKH DSSURDFK @ RU D ',5 72 ,17&37 DV


DYDLODEOH  RU

6\VWHPWRSLORW IHHGEDFN LH IRU PRGHV DQG

$ZDUHQHVV RI DYDLODEOH JXLGDQFH $3)' DQG

$OHUWQHVV WR DGDSW WKH OHYHO RI DXWRPDWLRQ WR WKH


WDVN DQGRU FLUFXPVWDQFHV RU WR UHYHUW WR KDQG
IO\LQJ  PDQXDO WKUXVW FRQWURO LI UHTXLUHG

FOHDULQJ DQ XQGXH LQWHUPHGLDWH ZD\SRLQW EH


QRW

IRU

WDUJHWV 

SHUIRUPLQJ D ',5 72 > D ZD\SRLQW DKHDG LQ

FDXWLRXV

LH

$7+5 VWDWXV PRGHV DUPHG RU HQJDJHG DFWLYH

FRUUHFW VHTXHQFLQJ FDQ EH UHVWRUH E\ HLWKHU

FRPPXQLFDWLRQ

WDUJHWV FURVVFKHFN 

ZLWK D FRUUHFW 72 ZD\SRLQW LV HVVHQWLDO WR UH

3LORWWRV\VWHP

PRGHV HQJDJHPHQW DQG WDUJHW VHOHFWLRQV 

1' DQG )06 &'8 

WR

FOHDU

WKH

GHVLUHG

72 ZD\SRLQW 

$GKHUHQFH WR GHVLJQ SKLORVRSK\ DQG RSHUDWLQJ


SKLORVRSK\
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

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

623V

DQG

2SHUDWLRQV

*ROGHQ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG
DORQJ ZLWK WKH DERYH LQIRUPDWLRQ WR FRPSOHPHQW WKLV
RYHUYLHZ RQ WKH XVH RI DXWRPDWLRQ

  2SHUDWLQJ 3KLORVRSK\  623V

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

5HJXODWRU\ UHIHUHQFHV
x

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW SDUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

WUDQVSRUW

$HURSODQHV $SSHQGL[  

,&$2

+XPDQ

)DFWRUV

7UDLQLQJ

0DQXDO

'RF  

,&$2

+XPDQ

2SHUDWLRQDO
$GYDQFHG

)DFWRUV

,PSOLFDWLRQV

7HFKQRORJ\

'LJHVW
RI

)OLJKW

1R

$XWRPDWLRQ
'HFNV

LQ

&LUFXODU

 

)$5   0LQLPXP DOWLWXGHV IRU WKH XVH RI


WKH DXWRSLORW

2SWLPXP 8VH RI $XWRPDWLRQ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

2SHUDWLRQV*ROGHQ5XOHV

6WDWLVWLFDO 'DWD

,QWURGXFWLRQ

*ROGHQ 5XOHV KDYH DOZD\V JXLGHG KXPDQ DFWLYLWLHV


,Q HDUO\ DYLDWLRQ GD\V WKH *ROGHQ 5XOHV GHILQHG WKH

7KH IROORZLQJ IDFWRUV IUHTXHQWO\ DUH LGHQWLILHG DV


FDXVDO IDFWRU LQ DSSURDFKDQGODQGLQJ DFFLGHQWV

EDVLF SULQFLSOHV RI DLUPDQVKLS


:LWK WKH GHYHORSPHQW RI WHFKQRORJ\ LQ PRGHUQ
DLUFUDIW DQG ZLWK UHVHDUFK RQ PDQPDFKLQHLQWHUIDFH
DQG FUHZFRRUGLQDWLRQ *ROGHQ 5XOHV KDYH EHHQ
EURDGHQHG WR HQFRPSDVV WKH SULQFLSOHV RI
LQWHUDFWLRQ ZLWK DXWRPDWLRQ DQG FUHZ UHVRXUFHV
PDQDJHPHQW &50 
7KH RSHUDWLRQV *ROGHQ 5XOHV GHILQHG E\ $LUEXV
,QGXVWULH DVVLVW WUDLQHHV LQ PDLQWDLQLQJ WKHLU EDVLF
DLUPDQVKLS HYHQ DV WKH\ SURJUHVV WR LQWHJUDWHG DQG
DXWRPDWHG DLUFUDIW PRGHOV
7KHVH UXOHV DSSO\ ZLWK OLWWOH PRGLILFDWLRQ WR DOO $LUEXV
PRGHOV
$OWKRXJK GHYHORSHG IRU WUDLQHHV WKH *ROGHQ 5XOHV
DUH HTXDOO\ XVHIXO IRU H[SHULHQFHG OLQH SLORWV
*ROGHQ 5XOHV DGGUHVV DVSHFWV WKDW DUH FRQVLGHUHG
IUHTXHQW FDXVDO IDFWRUV LQ DSSURDFK DQG ODQGLQJ
DFFLGHQWV
x ,QDGHTXDWH VLWXDWLRQDO  SRVLWLRQDO DZDUHQHVV
x ,QFRUUHFW LQWHUDFWLRQ ZLWK DXWRPDWLRQ
x 2YHUUHOLDQFH RQ DXWRPDWLRQ DQG
x ,QHIIHFWLYH FUHZ FURVVFKHFN DQG PXWXDO
EDFNXS

)DFWRU

,QDGHTXDWH GHFLVLRQ PDNLQJ


2PLVVLRQ RI DFWLRQ RU
LQDSSURSULDWH DFWLRQ
,QDGHTXDWH &50 SUDFWLFH
FUHZ FRRUGLQDWLRQ FURVV
FKHFN DQG EDFNXS
,QVXIILFLHQW KRUL]RQWDO RU
YHUWLFDO VLWXDWLRQDO DZDUHQHVV
,QDGHTXDWH RU LQVXIILFLHQW
XQGHUVWDQGLQJ RI SUHYDLOLQJ
FRQGLWLRQV
6ORZ RU GHOD\HG FUHZ DFWLRQ
)OLJKW KDQGOLQJ GLIILFXOWLHV
,QFRUUHFW RU LQFRPSOHWH
SLORWFRQWUROOHU
FRPPXQLFDWLRQ
,QWHUDFWLRQ ZLWK DXWRPDWLRQ

 RI
(YHQWV
 
 

 
 
 
 
 
 
 

7DEOH 
0RVW )UHTXHQW &DXVDO )DFWRUV
LQ $SSURDFKDQG/DQGLQJ $FFLGHQWV

2SHUDWLRQV *ROGHQ 5XOHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

*HQHUDO *ROGHQ 5XOHV


*ROGHQ 5XOHV

7KH IROORZLQJ HLJKW


QRUPDO

FRQGLWLRQV

DQG

PRUH

6HOHFW WKH GHVLUHG PRGHV IRU YHUWLFDO QDYLJDWLRQ

DUH DSSOLFDEOH LQ

LPSRUWDQWO\

LQ

DQG ODWHUDO QDYLJDWLRQ LH VHOHFWHG PRGHV RU

DQ\

)06PDQDJHG

XQDQWLFLSDWHG RU DEQRUPDO  HPHUJHQF\ FRQGLWLRQ

RI

WKUHH NQRZ ZKHUH VLWXDWLRQDODZDUHQHVV

WKH RSSRUWXQLW\ WR IO\ WKH DLUFUDIW MXVW XVLQJ WKH VWLFN


UXGGHU DQG WKURWWOHV
IOLJKW

GLUHFWRU

DXWRWKURWWOHDXWRWKUXVW

)' 

DXWRSLORW

$3 

DQG

IOLJKW

$7+5

PDQDJHPHQW V\VWHP )06 VKRXOG EH LQWURGXFHG


SURJUHVVLYHO\ DV GHILQHG E\ WKH DSSOLFDEOH WUDLQLQJ

.QRZ ZKHUH \RX DUH

.QRZ ZKHUH \RX VKRXOG EH DQG

.QRZ ZKHUH WKH WHUUDLQ DQG REVWDFOHV DUH

&RPPXQLFDWH 
(IIHFWLYH

V\OODEXV

FUHZ

FRPPXQLFDWLRQV

FRPPXQLFDWLRQ
EHWZHHQ

IOLJKW

LQYROYHV

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

$ PRUH GLUHFW OHYHO RI DXWRPDWLRQ RU UHYHUW WR

+DQG

IO\LQJ

GLUHFWO\

FRQWUROOLQJ

WKH

VWDEOH IOLJKW SDWK KDV EHHQ UHJDLQHG DQG WKH


DEQRUPDO

DLUFUDIW

7R

FRQGLWLRQ

KDV

EHHQ

7DVN VKDULQJ VKRXOG EH DGDSWHG WR WKH SUHYDLOLQJ


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


VKRXOG

EH

DFFRPSOLVKHG

DWWUDFW

WKH

FRQWUROOHUV

DWWHQWLRQ

XVH

WKH

IROORZLQJ VWDQGDUG SKUDVHRORJ\ DV DSSOLFDEOH

LQ WKDW RUGHU

WDVNV

HPHUJHQF\

SUHYDLOLQJ FRQGLWLRQ DQG RI KLVKHU LQWHQWLRQV

)O\ 1DYLJDWH &RPPXQLFDWH DQG 0DQDJH

DQG

RU

LGHQWLILHG WKH 3) VKRXOG LQIRUP WKH $7& RI WKH

WUDMHFWRU\ DQG HQHUJ\

)&20

DZDUH

LWHPV

7R SURPRWH WKLV UXOH HDFK WUDLQHH VKRXOG EH JLYHQ

RI

EHLQJ

7KLV UXOH FDQ EH VXPPDUL]HG E\ WKH IROORZLQJ

RWKHU DLUFUDIW

XVH

QDYLJDWLRQ 

VXUURXQGLQJ WHUUDLQ DQG PLQLPXP VDIH DOWLWXGH

$XWRPDWHG DLUFUDIW FDQ EH IORZQ OLNH DQ\

7KH

1DYLJDWH 

LQ

3DQ 3DQ 3DQ 3DQ 3DQ 3DQ RU

0D\GD\ 0D\GD\ 0D\GD\

0DQDJH

0DQDJLQJ WKH FRQWLQXDWLRQ RI WKH IOLJKW LV WKH

DFFRUGDQFH ZLWK WKH IROORZLQJ SULRULWLHV

QH[W SULRULW\ WKLV LQFOXGHV

)O\
3)

PXVW

FRQFHQWUDWH

RQ

IO\LQJ

WKH

0DQDJLQJ

DLUFUDIW

PDQDJHPHQW

DLUFUDIW

V\VWHPV

(7236

HJ

IXHO

PDQDJHPHQW

HWF 

DQG

LH E\ FRQWUROOLQJ DQGRU PRQLWRULQJ WKH SLWFK

DWWLWXGH EDQN DQJOH DLUVSHHG WKUXVW VLGHVOLS


KHDGLQJ  WR FDSWXUH DQG PDLQWDLQ WKH GHVLUHG

3HUIRUPLQJ

DSSOLFDEOH

HPHUJHQF\

DQGRU

DEQRUPDO SURFHGXUH V 

WDUJHWV YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK


6SHFLILF *ROGHQ 5XOHV WR DVVLVW IOLJKW FUHZ LQ

31) PXVW EDFNXS WKH 3) E\ PRQLWRULQJ IOLJKW


SDUDPHWHUV

DQG

E\

FDOOLQJ

DQ\

WKHLU GHFLVLRQPDNLQJ DQG PDQDJHPHQW SURFHVV

H[FHVVLYH

DUH SURYLGHG LQ WKH VHFRQG SDUW RI WKLV %ULHILQJ

GHYLDWLRQ

1RWH

2SHUDWLRQV *ROGHQ 5XOHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH GHVLJQ RI JODVVFRFNSLW DLUFUDIW IXOO\ VXSSRUWV

&ULWLFDO RU LUUHYHUVLEOH DFWLRQV VXFK DV VHOHFWLQJ DQ

WKH

HQJLQH IXHO OHYHU  PDVWHU VZLWFK RU D IXHO LVRODWLRQ

DERYH

7DEOH 

IRXUVWHS

VWUDWHJ\

DV

VXPPDUL]HG

LQ

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)'

1DYLJDWH

1'

&RPPXQLFDWH

'&'8

0DQDJH

(&$0

.QRZ \RXU )0$ JXLGDQFH DW DOO WLPHV


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

RU

HQJDJH

PRGHV DQG WR VHW WDUJHWV 


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 FUHZV PRGH VHOHFWLRQV


DQG WDUJHW HQWULHV
$Q\ DFWLRQ RQ )&8 RU RQ )06 NH\ERDUG DQG OLQH

3UDFWLFH WDVN VKDULQJ DQG EDFNXS HDFK


RWKHU

VHOHFW NH\V VKRXOG EH FRQILUPHG E\ FURVVFKHFNLQJ


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 

0RGHV DUPHG RU HQJDJHG

*XLGDQFH WDUJHWV VHW DQG

0RGH WUDQVLWLRQV RU UHYHUVLRQV

HPHUJHQF\ FRQGLWLRQV
(PHUJHQF\

DEQRUPDO

DQG

QRUPDO

SURFHGXUHV

LH QRUPDO FKHFNOLVWV VKRXOG EH SHUIRUPHG DV


GLUHFWHG E\ (&$0 DQGRU 45+ HJ 

&URVV FKHFN WKH DFFXUDF\ RI WKH )06 ZLWK


UDZ GDWD

,Q FDVH RI DQ HPHUJHQF\ FRQGLWLRQ

(PHUJHQF\ SURFHGXUH

1RUPDO FKHFNOLVW DV DSSOLFDEOH  DQG

$EQRUPDO SURFHGXUH V 

:KHQ

ZLWKLQ

QDYLJDWLRQ

QDYDLGV

DFFXUDF\

FRYHUDJH

VKRXOG

EH

DUHD

)06

FURVVFKHFNHG

DJDLQVW QDYDLGV UDZGDWD XQOHVV DLUFUDIW LV *36


,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


7KHVH

VKRXOG

EH

WXQHG

925'0(

LQ

WKH

EHDULQJGLVWDQFH %5*  ',67 72 ILHOG RI WKH

5HVXPLQJ DEQRUPDO SURFHGXUH


DFWLRQV

(QWHULQJ

DSSURSULDWH )06 SDJH

DFFRPSOLVKHG

LQ

DFFRUGDQFH ZLWK WKH SXEOLVKHG WDVN VKDULQJ FUHZ

&RPSDULQJ WKH UHVXOWLQJ )06 ',67 72 UHDGLQJ


ZLWK WKH '0( GLVWDQFH UHDG RQ WKH 50, RU RQ

FRRUGLQDWLRQ SULQFLSOHV DQG SKUDVHRORJ\

1' DV DSSOLFDEOH 

2SHUDWLRQV *ROGHQ 5XOHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

8VH WKH FRUUHFW OHYHO RI DXWRPDWLRQ IRU

&KHFNLQJ WKH GLIIHUHQFH EHWZHHQ )06 ',6 72


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


6HOHFW 3) 1' WR $5& RU 526( PRGH ,I QR PDS
VKLIW LV REVHUYHG 31) PD\ NHHS 1' LQ 0$3 PRGH

)06 PRGHV DQG JXLGDQFH RU

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

VLWXDWLRQDO DZDUHQHVV

2QH KHDG XS DW DOO WLPHV


6LJQLILFDQW FKDQJHV WR WKH )06 IOLJKW SODQ VKRXOG EH
SHUIRUPHG E\ 31) DQG FURVVFKHFNHG E\ 3) DIWHU

WUDQVIHU RI FRQWUROV LQ RUGHU WR PDLQWDLQ RQH KHDG XS


DW DOO WLPHV IRU VXSHUYLVLQJ WKH SURJUHVV RI WKH IOLJKW
DQG DLUFUDIW V\VWHPV

:KHQ WKLQJV GRQW JR DV H[SHFWHG 7DNH

2YHU
,I WKH DLUFUDIW GRHV QRW IROORZ WKH GHVLUHG YHUWLFDO
IOLJKW SDWK  ODWHUDO IOLJKW SDWK RU WKH VHOHFWHG WDUJHWV

7KH WDVN WR EH SHUIRUPHG

VKRUWWHUP WDFWLFDO WDVN RU

ORQJWHUP VWUDWHJLF WDVN

7KH IOLJKW SKDVH

HQURXWH

WHUPLQDO DUHD RU

DSSURDFK DQG

7KH WLPH DYDLODEOH

QRUPDO VHOHFWLRQ RU HQWU\ RU

ODVWPLQXWH FKDQJH

DQG WLPH GRHV QRW SHUPLW DQDO\]LQJ DQG VROYLQJ WKH


7KH FRUUHFW OHYHO RI DXWRPDWLRQ RIWHQ LV WKH RQH WKH

REVHUYHG EHKDYLRU UHYHUW ZLWKRXW GHOD\ IURP

SLORW IHHOV WKH PRVW FRPIRUWDEOH ZLWK GHSHQGLQJ RQ

)06 JXLGDQFH WR VHOHFWHG JXLGDQFH RU IURP

6HOHFWHG JXLGDQFH WR KDQG IO\LQJ

KLVKHU NQRZOHGJH DQG H[SHULHQFH RI WKH DLUFUDIW DQG


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

2SHUDWLRQV *ROGHQ 5XOHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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\

'HOD\LQJ DFWLRQV ZKHQ SRVVLEOH HJ GXULQJ


WDNHRII DQG ILQDO DSSURDFK  DQGRU

5HTXHVWLQJ

HQWHULQJ

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

2SHUDWLRQV *ROGHQ 5XOHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

0DWFK WKH UHVSRQVH WR WKH VLWXDWLRQ


$Q

HPHUJHQF\

FRQGLWLRQ

UHTXLUHV

DQ

6XPPDU\ RI .H\ 3RLQWV


*ROGHQ 5XOHV FRQVWLWXWH D VHW RI NH\ SRLQWV IRU VDIH

LPPHGLDWH

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

*ROGHQ 5XOHV WKH IROORZLQJ LV SURSRVHG

0DQDJH ZRUNORDG

:KDWHYHU WKH SUHYDLOLQJ FRQGLWLRQV DOZD\V HQVXUH

$GKHUH WR WKH GHILQHG WDVN VKDULQJ IRU DEQRUPDO 


HPHUJHQF\

FRQGLWLRQV

WR

UHGXFH

ZRUNORDG

WKDW RQH SLORW LV FRQWUROOLQJ DQG PRQLWRULQJ WKH

DQG

RSWLPL]H IOLJKW FUHZ UHVRXUFHV

IOLJKW SDWK RI WKH DLUFUDIW

8VH $3$7+5 LI DYDLODEOH WR DOOHYLDWH WKH 3)

$VVRFLDWHG %ULHILQJ 1RWHV

ZRUNORDG
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


FUHZPHPEHUV E\ FRPPXQLFDWLQJ
&RPPXQLFDWH ZLWK RWKHU FUHZPHPEHUV WR FUHDWH D
VKDUHG XQGHUVWDQGLQJ RI 

3UHYDLOLQJ FRQGLWLRQV DQG

3ODQQHG DFWLRQV

  2SHUDWLQJ 3KLORVRSK\  623V

  2SWLPXP 8VH RI $XWRPDWLRQ

  8VH RI 1RUPDO &KHFNOLVWV

  &50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ


$FFLGHQWV

5HJXODWRU\ 5HIHUHQFHV

&UHDWLQJ D VKDUHG PRGHO DOORZV FUHZPHPEHUV WR


ZRUN ZLWK D FRPPRQ UHIHUHQFH WRZDUGV D FRPPRQ

DQG ZHOOXQGHUVWRRG REMHFWLYH

,&$2

$SSO\ UHFRPPHQGHG SURFHGXUHV DQG RWKHU


DJUHHG DFWLRQV

)$$

DFWLRQ EHIRUH DFWLQJ DQG FKHFN WKH UHVXOW V RI HDFK


DFWLRQ EHIRUH SURFHHGLQJ ZLWK WKH QH[W VWHS
RI

LUUHYHUVLEOH

DFWLRQV

LH

DSSO\

0DNLQJ

8QGHUVWDQG WKH UHDVRQV DQG LPSOLFDWLRQV RI DQ\

%HZDUH

+XPDQ

)DFWRUV

7UDLQLQJ

0DQXDO

'RF  

VWULFW

FRQILUPDWLRQ DQG FURVVFKHFN EHIRUH DFWLQJ 

2SHUDWLRQV *ROGHQ 5XOHV


3DJH 

$&



$HURQDXWLFDO

'HFLVLRQ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH
6WDQGDUG&DOOV

8VH RI VWDQGDUG FDOOV DQG DFNQRZOHGJHPHQWV


UHGXFHV WKH ULVN RI WDFWLFDO VKRUWWHUP GHFLVLRQ
PDNLQJ HUURUV HJ LQ VHOHFWLQJ PRGHV VHWWLQJ
WDUJHWV RU VHOHFWLQJ DLUFUDIW FRQILJXUDWLRQV 

,QWURGXFWLRQ

6WDQGDUG SKUDVHRORJ\ LV HVVHQWLDO WR HQVXUH


HIIHFWLYH FUHZ FRPPXQLFDWLRQ SDUWLFXODUO\ LQ WRGD\V
RSHUDWLQJ HQYLURQPHQW ZKLFK LQFUHDVLQJO\ IHDWXUHV
x 7ZRFUHZPHPEHU RSHUDWLRQ DQG
x ,QWHUQDWLRQDO DQG ZRUOGZLGH FRQWH[WV LQYROYLQJ
FUHZPHPEHUV IURP GLIIHUHQW FXOWXUHV DQG ZLWK
GLIIHUHQW QDWLYH ODQJXDJHV
6WDQGDUG FDOOV DUH LQWHQGHG DQG GHVLJQHG WR
HQKDQFH WKH IOLJKWFUHZ VLWXDWLRQDO DZDUHQHVV
LH LQFOXGLQJ WKH VWDWXV DQG RSHUDWLRQ RI DLUFUDIW
V\VWHPV 
6WDQGDUG FDOOV PD\ YDU\ DPRQJ
x $LUFUDIW PRGHOV EDVHG XSRQ IOLJKWGHFN GHVLJQ
DQG V\VWHPV LQWHUIDFHV RU
x $LUOLQHV WR VXLW WKHLU RSHUDWLQJ SKLORVRSK\
623V 

7KH LPSRUWDQFH RI XVLQJ VWDQGDUG FDOOV LQFUHDVHV


ZLWK LQFUHDVLQJ ZRUNORDG RU IOLJKW SKDVH FULWLFDOLW\
6WDQGDUG FDOOV VKRXOG EH SUDFWLFDO FRQFLVH
XQDPELJXRXV DQG FRQVLVWHQW ZLWK WKH DLUFUDIW GHVLJQ
DQG RSHUDWLQJ SKLORVRSK\
6WDQGDUG FDOOV VKRXOG EH LQFOXGHG LQ WKH IORZ
VHTXHQFH RI FRPSDQ\ 623V DQG VKRXOG EH
LOOXVWUDWHG LQ WKH )OLJKW 3DWWHUQV SXEOLVKHG LQ WKH
FRPSDQ\ $20 RU 45+ DV DSSOLFDEOH 
&RPPDQG DQG UHVSRQVH FDOOV VKRXOG EH SHUIRUPHG
LQ DFFRUGDQFH ZLWK WKH GHILQHG 3)  31) WDVN
VKDULQJ LH WDVN VKDULQJ IRU KDQG IO\LQJ DQG IRU
DXWRSLORW RSHUDWLRQ WDVN VKDULQJ IRU QRUPDO
RSHUDWLRQ DQG IRU DEQRUPDO  HPHUJHQF\ FRQGLWLRQ 

6WDWLVWLFDO 'DWD

1HYHUWKHOHVV LI D FDOO LV RPLWWHG E\ RQH


FUHZPHPEHU WKH RWKHU FUHZPHPEHU VKRXOG
SHUIRUP WKH FDOO SHU JRRG FUHZ UHVRXUFH
PDQDJHPHQW &50 SUDFWLFH

,QVXIILFLHQW KRUL]RQWDO RU YHUWLFDO VLWXDWLRQDO


DZDUHQHVV RU LQDGHTXDWH XQGHUVWDQGLQJ RI
SUHYDLOLQJ FRQGLWLRQV LV D FDXVDO IDFWRU LQ PRUH WKDQ
  RI DSSURDFKDQGODQGLQJ DFFLGHQWV

7KH RWKHU FUHZPHPEHU VKRXOG DFFRPSOLVK WKH


UHTXHVWHG FRPPDQG RU YHULI\ WKH UHTXHVWHG
FRQGLWLRQ DQG UHVSRQG DFFRUGLQJO\

8VH RI 6WDQGDUG &DOOV

6WDQGDUG FDOOV VKRXOG EH GHILQHG WR EH DOHUWLQJ WR


EH 
x &OHDUO\ LGHQWLILHG E\ WKH 3) RU 31) DQG
x 'LVWLQJXLVKHG IURP RWKHU LQWUDFRFNSLW RU $7&
FRPPXQLFDWLRQV

7KH DEVHQFH RI D VWDQGDUG FDOO DW WKH DSSURSULDWH


WLPH RU WKH DEVHQFH RI DFNQRZOHGJHPHQW PD\ EH
DQ LQGLFDWLRQ RI D V\VWHP RU LQGLFDWLRQ PDOIXQFWLRQ
RU PD\ LQGLFDWH D SRVVLEOH LQFDSDFLWDWLRQ RI WKH
RWKHU FUHZPHPEHU

6WDQGDUG &DOOV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

6WDQGDUG FDOOV DUH XVHG WR

*LYH D FRPPDQG WDVN GHOHJDWLRQ RU WUDQVIHU

21 RU 2)) IROORZLQJ WKH QDPH RI D V\VWHP LV


HLWKHU

DQ LQIRUPDWLRQ

21  2))

$FNQRZOHGJH D FRPPDQG RU

DQ LQIRUPDWLRQ

GHVHOHFW WKH UHODWHG V\VWHP RU

WUDQVIHU

*LYH D UHVSRQVH RU DVN D TXHVWLRQ IHHGEDFN 

&DOORXW D FKDQJH RI LQGLFDWLRQ HJ D PRGH

,GHQWLI\

VSHFLILF

HYHQW

HJ

FURVVLQJ

6SHFLILF 6WDQGDUG &DOOV

DQ

$SSURSULDWH VWDQGDUG FDOOV VKRXOG EH GHILQHG IRU WKH

DOWLWXGH RU D IOLJKW OHYHO 

IROORZLQJ HYHQWV

'HILQLQJ *HQHULF 6WDQGDUG &DOOV


7KH IROORZLQJ JHQHULF VWDQGDUG FDOOV RIWHQ DUH XVHG
WR H[SUHVV D FRPPDQG RU UHVSRQVH

&KHFN RU 9HULI\ 

D FRPPDQG IRU WKH RWKHU SLORW WR FKHFN DQ

)OLJKWFUHZJURXQG PHFKDQLFV FRPPXQLFDWLRQV

(QJLQH VWDUW VHTXHQFH

6SHFLILF HYHQWPDUNHUV DORQJ WKH WDNHRII SKDVH

/DQGLQJ

x
x

FRQILUPDWLRQ

WKDW

DQ

LWHP

KDV

FDOO

UHVSRQVH

FRQILUPLQJ

WKDW

DQ

VWDWLRQV
6HW

D FRPPDQG IRU WKH RWKHU SLORW WR VHW D WDUJHW


YDOXH RU D FRQILJXUDWLRQ

$UP

D FRPPDQG IRU WKH RWKHU SLORW WR DUP DQ

LQWHUUXSWLRQ

UHVXPSWLRQ

DQG

,QLWLDWLRQ VHTXHQFLQJ LQWHUUXSWLRQ UHVXPSWLRQ

0RGH

WUDQVLWLRQV

DQG

UHYHUVLRQV

LH

)0$

&KDQJLQJ WKH DOWLPHWHU VHWWLQJ

$SSURDFKLQJ WKH FOHDUHG DOWLWXGH RU )/

7&$6  7$ RU 5$ HYHQWV

3)31) WUDQVIHU RI FRQWUROV

([FHVVLYHGHYLDWLRQ RI D IOLJKW SDUDPHWHU

6SHFLILF SRLQWV DORQJ WKH LQVWUXPHQW DSSURDFK


SURFHGXUH

(QJDJH

,QLWLDWLRQ

$3)' PRGH RU WR DUP D V\VWHP 

VHOHFWLRQ

FKDQJHV 

LQIRUPDWLRQ KDV EHHQ FKHFNHG DW ERWK SLORW

VODWVIODSV

FKHFNOLVWV SDSHU RU HOHFWURQLF FKHFNOLVW 

&URVVFKHFN HG 

DQG

DQG FRPSOHWLRQ RI DEQRUPDO DQG HPHUJHQF\

EHHQ

FKHFNHG

JHDU

FRPSOHWLRQ RI QRUPDO FKHFNOLVWV

&KHFNHG

UHWUDFWLRQ RU H[WHQVLRQ 

LWHP

D UHVSRQVH FRQILUPLQJ WKH VWDWXV RI WKH


V\VWHP

WUDQVLWLRQ RU UHYHUVLRQ  RU

D FRPPDQG IRU WKH RWKHU SLORW WR VHOHFW 

D FRPPDQG IRU WKH RWKHU SLORW WR HQJDJH DQ


$3)' PRGH RU WR HQJDJH D V\VWHP 

$SSURDFKLQJ DQG UHDFKLQJ PLQLPXPV

$FTXLVLWLRQ RI YLVXDO UHIHUHQFHV DQG

/DQGLQJ RU JRDURXQG GHFLVLRQ

6WDQGDUG &DOOV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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 

6XPPDU\ RI NH\ SRLQWV

7KH VWDQGDUG FDOOV VKRXOG WULJJHU LPPHGLDWHO\


WKH TXHVWLRQ ZKDW GR , ZDQW WR IO\ QRZ "  DQG

6WDQGDUG &DOOV HQVXUH HIIHFWLYH FUHZ LQWHUDFWLRQ DQG

WKXV FOHDUO\ LQGLFDWHV ZKLFK

FRPPXQLFDWLRQ

PRGH WKH SLORW ZLVKHV WR DUP RU HQJDJH

7KH

DQGRU

&RPPDQG

WKH

SLORWV

3)

DUH

DQG
RI

WKH

HTXDO

5HVSRQVH
LPSRUWDQFH


WR

JXDUDQWHH D WLPHO\ DFWLRQ RU FRUUHFWLRQ

WDUJHW WKH SLORW ZLVKHV WR VHW

:KHQ

&DOO

$FNQRZOHGJHPHQW

LQWHQWLRQ

LV

FOHDUO\

$VVRFLDWHG %ULHILQJ 1RWHV

WUDQVPLWWHG WR WKH RWKHU SLORW 31)  WKH VWDQGDUG


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

IDFLOLWDWH

WKH

SDUWLFXODU WRSLF

FURVVFKHFN

DQG

EDFNXS

EHWZHHQ ERWK SLORWV

6WDQGDUG FDOOV VKRXOG EH GHILQHG IRU FRFNSLW FUHZ 


FDELQ FUHZ FRPPXQLFDWLRQV LQ ERWK

1RUPDO FRQGLWLRQV GHSDUWXUH DQG DUULYDO  DQG

$EQRUPDO RU HPHUJHQF\ VLWXDWLRQV HJ FDELQ


GHSUHVVXUL]DWLRQ

RQJURXQG

HPHUJHQF\

  2SHUDWLQJ 3KLORVRSK\ 623V

  2SWLPXP 8VH RI $XWRPDWLRQ

  2SHUDWLRQV *ROGHQ 5XOHV

  8VH RI 1RUPDO &KHFNOLVWV

  (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

  ,QWUDFRFNSLW &RPPXQLFDWLRQV


0DQDJLQJ ,QWHUUXSWLRQV DQG

HYDFXDWLRQ FUHZ LQFDSDFLWDWLRQ IRUFHG ODQGLQJ

'LVWUDFWLRQV

RU GLWFKLQJ HWF 

5HJXODWRU\ UHIHUHQFHV

+DUPRQL]DWLRQ RI 6WDQGDUG &DOOV

7KH KDUPRQL]DWLRQ RI VWDQGDUG FDOOV DFURVV YDULRXV


DLUFUDIW

IOHHWV

IURP

WKH

VDPH

RU

IURP

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO &RPPHUFLDO $LU WUDQVSRUW

GLIIHUHQW

$HURSODQHV $SSHQGL[  

DLUFUDIW PDQXIDFWXUHUV LV GHVLUDEOH EXW VKRXOG QRW

EH DQ RYHUULGLQJ GHPDQG

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO


'RF  

6WDQGDUG FDOOV DFURVV IOHHWV DUH RQO\ HVVHQWLDO IRU


FUHZPHPEHUV

RSHUDWLQJ

GLIIHUHQW

IOHHWV

-$5236  DQG DVVRFLDWHG $SSHQGL[ 


2SHUDWLRQV 0DQXDOV VWUXFWXUH DQG FRQWHQWV

LH IRU FRPPXQLFDWLRQV EHWZHHQ FRFNSLW DQG FDELQ


RU EHWZHHQ FRFNSLW DQG JURXQG 

2WKHU 5HIHUHQFHV

:LWKLQ WKH FRFNSLW SLORWV QHHG WR XVH VWDQGDUG FDOOV


DSSURSULDWH IRU WKH IOLJKWGHFN DQG V\VWHPV GHVLJQ

:LWK WKH H[FHSWLRQ RI DLUFUDIW PRGHOV ZLWK FRFNSLW


VDPH

DQG

WKXV

VLPLODULWLHV

DV

ZHOO

1DWLRQDO

6SHFLDO

FRPPRQDOLW\ FRFNSLW OD\RXWV DQG V\VWHPV DUH QRW


WKH

86

7UDQVSRUWDWLRQ

6DIHW\

%RDUG

176% 6SHFLDO 5HSRUW 176%$$6


6WXG\

)OLJKWFUHZ

&RRUGLQDWLRQ

3URFHGXUHV LQ $LU &DUULHU ,QVWUXPHQW /DQGLQJ

DV

6\VWHP $SSURDFK $FFLGHQWV

GLIIHUHQFHV VKRXOG EH UHFRJQL]HG DOLNH

6WDQGDUG &DOOV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

1RUPDO&KHFNOLVWV
1RUPDO FKHFNOLVWV DUH QRW UHDGDQGGR OLVWV DQG
VKRXOG EH DFFRPSOLVKHG DIWHU SHUIRUPLQJ WKH IORZ RI
623V DFWLRQV
7KH FRUUHFW FRPSOHWLRQ RI QRUPDO FKHFNOLVWV LV
HVVHQWLDO IRU VDIH RSHUDWLRQ SDUWLFXODUO\ IRU WDNHRII
DQG GXULQJ DSSURDFK DQG ODQGLQJ
)RU DQ HIIHFWLYH XVH RI QRUPDO FKHFNOLVWV WKH
IROORZLQJ JHQHULF UXOHV VKRXOG EH FRQVLGHUHG

,QWURGXFWLRQ

6WULFW DGKHUHQFH WR VXLWDEOH VWDQGDUG RSHUDWLQJ


SURFHGXUHV 623V DQG DVVRFLDWHG QRUPDO
FKHFNOLVWV LV D PDMRU FRQWULEXWLRQ WR SUHYHQWLQJ DQG
UHGXFLQJ DSSURDFKDQGODQGLQJ DFFLGHQWV
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI
x 7KH VFRSH DQG XVH RI QRUPDO FKHFNOLVWV DQG
x 7KH IDFWRUV DQG FRQGLWLRQV WKDW PD\ DIIHFW WKH
QRUPDO IORZ DQG FRPSOHWLRQ RI QRUPDO
FKHFNOLVWV

,QLWLDWLQJ QRUPDO FKHFNOLVWV

1RUPDO FKHFNOLVWV VKRXOG EH LQLWLDWHG FDOOHG E\ WKH


SLORW IO\LQJ 3) DQG UHDG E\ WKH SLORW QRW IO\LQJ
31) 
,I WKH 3) IDLOV WR LQLWLDWH D QRUPDO FKHFNOLVW WKH 31)
VKRXOG VXJJHVW WKH LQLWLDWLRQ RI WKH FKHFNOLVW
E\ DSSO\LQJ JRRG &50 SUDFWLFH 
1RUPDO FKHFNOLVWV VKRXOG EH FDOOHG LQ D WLPHO\
PDQQHU GXULQJ ORZZRUNORDG SHULRGV FRQGLWLRQV
SHUPLWWLQJ WR SUHYHQW DQ\ UXVK RU LQWHUUXSWLRQ WKDW
FRXOG GHIHDW WKH VDIHW\ SXUSRVH RI WKH QRUPDO
FKHFNOLVWV
7LPH DQG ZRUNORDG PDQDJHPHQW LH DYDLODELOLW\ RI
RWKHU FUHZPHPEHU DUH NH\ IDFWRUV LQ WKH LQLWLDWLRQ
DQG HIIHFWLYH FRQGXFW RI QRUPDO FKHFNOLVWV

6WDWLVWLFDO 'DWD

7KH RPLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ


LV WKH ODUJHVW SULPDU\ FDXVDO IDFWRU LQ DSSURDFKDQG
ODQGLQJ DFFLGHQWV
2PLVVLRQ RI DQ DFWLRQ RU LQDSSURSULDWH DFWLRQ LV
x $ FDXVDO IDFWRU DORQJ ZLWK RWKHU FDXVDO IDFWRUV
LQ   RI IDWDO DSSURDFKDQGODQGLQJ DFFLGHQWV
DQG
x $ IDFWRU WR VRPH GHJUHH LQ   RI DOO
DSSURDFKDQGODQGLQJ HYHQWV
8VH RI 1RUPDO &KHFNOLVWV

623V VKRXOG EH DFFRPSOLVKHG E\ UHFDOO XVLQJ D


GHILQHG IORZ SDWWHUQ IRU HDFK FRFNSLW SDQHO VDIHW\
FULWLFDO SRLQWV LH SULPDULO\ LWHPV UHODWHG WR DLUFUDIW
FRQILJXUDWLRQ VKRXOG EH FURVVFKHFNHG ZLWK
UHIHUHQFH WR 1RUPDO &KHFNOLVWV
1RUPDO FKHFNOLVWV HQKDQFH IOLJKW VDIHW\ E\ SURYLGLQJ
DQ RSSRUWXQLW\ WR FRQILUP RU FRUUHFW WKH V\VWHPV DQG
DLUFUDIW FRQILJXUDWLRQ IRU FULWLFDO LWHPV

&RQGXFWLQJ QRUPDO FKHFNOLVWV

1RUPDO FKHFNOLVWV DUH EDVHG RQ WKH FKDOOHQJH DQG


UHVSRQVH FRQFHSW
&ULWLFDO LWHPV UHTXLUH UHVSRQVH E\ WKH 3) VRPH
OHVVFULWLFDO LWHPV PD\ EH ERWK FKDOOHQJHG DQG
UHVSRQGHG WR E\ WKH 31) DORQH

8VH RI 1RUPDO &KHFNOLVWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

7R

HQKDQFH

FRPPXQLFDWLRQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

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

,I DFKLHYLQJ WKH UHTXLUHG FRQILJXUDWLRQ LV QRW

WUDQVLWLRQ

SRVVLEOH WKH UHVSRQGLQJ FUHZPHPEHU VKRXOG

HQFRXUDJH

DQQRXQFH WKH DFWXDO FRQILJXUDWLRQ

RSHUDWLRQ

,Q

DOO

FDVHV

WKH

FKDOOHQJLQJ

FUHZPHPEHU

RU

UHFXUUHQW

VLPXODWRU

FRUUHVSRQGLQJ

WUDLQLQJ

GHYLDWLRQV

PD\

GXULQJ

OLQH

/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

)DFWRUV $IIHFWLQJ 1RUPDO &KHFNOLVWV

7KH 31) VKRXOG YHUEDOL]H WKH FRPSOHWLRQ RI WKH


FKHFNOLVW E\ FDOOLQJ >@ FKHFNOLVW FRPSOHWH

7R

HQVXUH

$$$ IDPLOLHV IHDWXUH HOHFWURQLF QRUPDO

SLORWV

FKHFNOLVWV LH 7$.(2)) DQG /$1',1* 0(02

3LORWV

,WHPV EHLQJ FRPSOHWHG DQG

,WHPV VWLOO WR EH SHUIRUPHG EOXH FRORU FRGLQJ 

FRPSOLDQFH

ZLWK

SXEOLVKHG

VRPHWLPHV

RPLW

SDUWLDOO\

RU

FRPSOHWHO\

QRUPDO FKHFNOLVW

WKDW DOORZ D SRVLWLYH LGHQWLILFDWLRQ RI 

HIIHFWLYH

QRUPDO FKHFNOLVWV LW LV LPSRUWDQW WR XQGHUVWDQG ZK\

UDUHO\

RPLW

WKH

SHUIRUPDQFH

RI

QRUPDO

FKHFNOLVW LQWHQWLRQDOO\ VXFK D GHYLDWLRQ IURP 623V


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

,I

WKH

IORZ

RI

QRUPDO

FKHFNOLVW

QHHGV

WR

LQ

GLVFXVVLQJ

WKH

FRPSOHWH

RU

SDUWLDO

QRQ

SHUIRUPDQFH RI D QRUPDO FKHFNOLVW

EH

LQWHUUXSWHG IRU DQ\ UHDVRQ WKH 3) VKRXOG DQQRXQFH

2XWRISKDVH

WLPH

VFDOH

ZKHQHYHU

IDFWRU

D IRUPDO DQG H[SOLFLW KROG VXFK DV KROG VWRS

VXFK DV WDLO ZLQG RU D V\VWHP PDOIXQFWLRQ

FKHFNOLVW DW >LWHP@ 

PRGLILHV WKH WLPHVFDOH RI WKH DSSURDFK RU WKH


RFFXUUHQFH RI WKH WULJJHUHYHQW IRU WKH LQLWLDWLRQ

$Q H[SOLFLW FDOO VXFK DV UHVXPH FRQWLQXH FKHFNOLVW

RI WKH QRUPDO FKHFNOLVW

DW >LWHP@ VKRXOG EH PDGH


8SRQ

UHVXPLQJ

WKH

QRUPDO

FKHFNOLVW

DIWHU

DQ

LQWHUUXSWLRQ WKH ODVW NQRZQ FRPSOHWHG LWHP VKRXOG

'LVWUDFWLRQV HJ GXH WR LQWUDFRFNSLW DFWLYLWLHV 

,QWHUUXSWLRQV

LWHP IURP EHLQJ RPLWWHG


7KH 623V

LQ

WKH

DSSOLFDEOH

)&20

DQG

x
623V

DQG

QRUPDO

KDELWV

FRQWUROOHU

,QFRUUHFW

PDQDJHPHQW
RI

RI

GHFLVLRQPDNLQJ

SULRULWLHV
PRGHO

IRU

LH
WLPH

DQG

URXWLQHV

DFTXLUHG

5HGXFHG DWWHQWLRQ WXQQHO YLVLRQ LQ DEQRUPDO RU


KLJKZRUNORDG FRQGLWLRQV

FKHFNOLVWV

VKRXOG EHJLQ GXULQJ WKH WUDQVLWLRQ WUDLQLQJ FRXUVH


EHFDXVH

SLORW

FULWLFDO VLWXDWLRQV 

7UDLQLQJ $VSHFWV
RI

WR

7DVN VDWXUDWLRQ LH LQDGHTXDWH PXOWLWDVNLQJ

DEVHQFH

XVH

GXH

DELOLW\ RU WDVN RYHUORDG 

45+

SURYLGH W\SHUHODWHG LQIRUPDWLRQ

'LVFLSOLQHG

HJ

FRPPXQLFDWLRQV 

EH UHSHDWHG  DV DQ RYHUODS WR SUHYHQW DQRWKHU

GXULQJ

,QFRUUHFW &50 WHFKQLTXHV DEVHQFH RI HIIHFWLYH


FURVVFKHFN FUHZ FRRUGLQDWLRQ DQGRU EDFNXS 

WUDQVLWLRQ WUDLQLQJ KDYH D UHFRJQL]HG ODVWLQJ HIIHFW

2YHUUHOLDQFH RQ PHPRU\ RYHUFRQILGHQFH 

8VH RI 1RUPDO &KHFNOLVWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

/HVVWKDQRSWLPXP

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

FKHFNOLVW

FRQWHQW

5HJXODWRU\ UHIHUHQFHV

DQGRU

WDVN VKDULQJ DQGRU IRUPDW DQG

,QVXIILFLHQW

HPSKDVLV

RQ

VWULFW

DGKHUHQFH

WR

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

QRUPDO FKHFNOLVWV GXULQJ WUDQVLWLRQ WUDLQLQJ DQG

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV   DQG $SSHQGL[  

UHFXUUHQW WUDLQLQJ

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

6XPPDU\ RI .H\ 3RLQWV

RSHUDWLRQV

3$16236

'RF

 

9ROXPH , )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW


1R  DSSOLFDEOH 1RY 

,QLWLDWLRQ
WLPHO\

DQG

PDQQHU

FRPSOHWLQJ
LV

WKH

QRUPDO

PRVW

FKHFNOLVWV

HIIHFWLYH

LQ

PHDQV

RI

SUHYHQWLQJ WKH RPLVVLRQ RI DFWLRQV RU SUHYHQWLQJ

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO


'RF  

LQDSSURSULDWH DFWLRQV

([SOLFLW FDOOV VKRXOG EH GHILQHG LQ WKH 623V IRU WKH


LQWHUUXSWLRQ KROG DQG UHVXPSWLRQ FRQWLQXDWLRQ RI
D QRUPDO FKHFNOLVW LH LQ FDVH RI LQWHUUXSWLRQ RU

GLVWUDFWLRQ 

+XPDQ

)DFWRUV

7UDLQLQJ

0DQXDO

)$5



,QVWUXPHQW

DQG

(TXLSPHQW

QRUPDO DQG QRQQRUPDO FRQGLWLRQV 

+LJKOLJKWHG DW DOO VWDJHV RI LQLWLDO WUDQVLWLRQ DQG

-$5236  DQG DVVRFLDWHG $SSHQGL[ 


2SHUDWLRQV 0DQXDOV 6WUXFWXUH DQG &RQWHQWV

OLQH WUDLQLQJ DQG

5HTXLUHPHQW  &RFNSLW &KHFN 3URFHGXUH IRU

'LVFLSOLQHG XVH RI QRUPDO FKHFNOLVWV VKRXOG EH

,&$2

'RF  

(QIRUFHG DW WKH RSSRUWXQLW\ RI DOO FKHFNV DQG


DXGLWV SHUIRUPHG GXULQJ OLQH RSHUDWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


7KH IROORZLQJ %ULHILQJ 1RWHV PD\ EH UHYLHZHG LQ
DVVRFLDWLRQ ZLWK WKH DERYH LQIRUPDWLRQ WR FRPSOHWH
WKH RYHUYLHZ RI VWDQGDUG RSHUDWLQJ SURFHGXUHV

x   2SHUDWLQJ 3KLORVRSK\  623V


x   2SHUDWLRQDO *ROGHQ 5XOHV
x   6WDQGDUG &DOOV
x   ,QWUDFRFNSLW &RPPXQLFDWLRQV
0DQDJLQJ ,QWHUUXSWLRQV DQG
'LVWUDFWLRQV

8VH RI 1RUPDO &KHFNOLVWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

$SSURDFKDQG*RDURXQG%ULHILQJV
7KH VW\OH DQG WRQH RI WKH EULHILQJ SOD\ DQ LPSRUWDQW
UROH LQWHUDFWLYH EULHILQJV LH FRQILUPLQJ WKH
DJUHHPHQW DQG XQGHUVWDQGLQJ RI WKH 31) DIWHU HDFK
SKDVH RI WKH EULHILQJ SURYLGHV PRUH HIIHFWLYH DQG
SURGXFWLYH EULHILQJV WKDQ DQ XQLQWHUUXSWHG UHFLWDWLRQ
WHUPLQDWHG E\ WKH ILQDO TXHU\ $Q\ TXHVWLRQ " 
,QWHUDFWLYH EULHILQJV EHWWHU IXOILOO DQ LPSRUWDQW
SXUSRVH RI WKH EULHILQJV WR SURYLGH WKH 3) DQG 31)
ZLWK DQ RSSRUWXQLW\ WR FRUUHFW HDFK RWKHU
HJ FRQILUPLQJ XVH RI WKH FRUUHFW DQG HIIHFWLYH
DSSURDFK FKDUW FRQILUPLQJ FRUUHFW VHWXS RI QDYDLGV
IRU WKH DVVLJQHG ODQGLQJ UXQZD\ HWF 
%ULHILQJV VKRXOG EH VWUXFWXUHG LH IROORZ WKH ORJLFDO
VHTXHQFH RI WKH DSSURDFK DQG ODQGLQJ DQG
FRQFLVH
7KH URXWLQH DQG IRUPDO UHSHWLWLRQ RI WKH VDPH SRLQWV
RQ HDFK VHFWRU PD\ EHFRPH FRXQWHUSURGXFWLYH
DGDSWLQJ DQG H[SDQGLQJ WKH EULHILQJ E\ KLJKOLJKWLQJ
WKH VSHFLDO DVSHFWV RI WKH DSSURDFK RU WKH DFWXDO
ZHDWKHU FRQGLWLRQV DQG FLUFXPVWDQFHV UHVXOW LQ
PRUH OLYHO\ DQG HIIHFWLYH EULHILQJV
,Q VKRUW WKH EULHILQJ VKRXOG DWWUDFW WKH 31)V
DWWHQWLRQ
7KH EULHILQJ VKRXOG WKHUHIRUH EH FRQGXFWHG ZKHQ
WKH ZRUNORDG DQG DYDLODELOLW\ RI WKH 31) SHUPLW DQ
HIIHFWLYH EULHILQJ
$Q\ DVSHFW WKDW PD\ DIIHFW QRUPDO RSHUDWLRQ
HJ V\VWHP IDLOXUHV ZHDWKHU FRQGLWLRQV RU RWKHU
SDUWLFXODU FRQGLWLRQV VKRXOG EH FDUHIXOO\ HYDOXDWHG
DQG GLVFXVVHG
7KH EULHILQJ VKRXOG KHOS ERWK WKH 3) JLYLQJ WKH
EULHILQJ DQG WKH 31) UHFHLYLQJ DQG DFNQRZOHGJLQJ
WKH EULHILQJ WR XQGHUVWDQG WKH VHTXHQFH RI HYHQWV
DQG DFWLRQV DV ZHOO DV WKH VSHFLDO KD]DUGV DQG
FLUFXPVWDQFHV RI WKH DSSURDFK LH E\ FUHDWLQJ D
FRPPRQ PHQWDO PRGHO RI WKH DSSURDFK 

,QWURGXFWLRQ

7R HQVXUH PXWXDO XQGHUVWDQGLQJ DQG HIIHFWLYH


FRRSHUDWLRQ DPRQJ FUHZPHPEHUV DQG ZLWK $7& LQ
GHSWK DSSURDFK DQG JRDURXQG EULHILQJV VKRXOG EH
FRQGXFWHG RQ HDFK IOLJKW
$ WKRURXJK EULHILQJ VKRXOG EH FRQGXFWHG UHJDUGOHVV
RI
x +RZ IDPLOLDU WKH GHVWLQDWLRQ DLUSRUW DQG WKH
DSSURDFK PD\ EH RU
x +RZ RIWHQ WKH FUHZPHPEHUV KDYH IORZQ
WRJHWKHU
7KLV %ULHILQJ 1RWH SURYLGHV JHQHULF JXLGHOLQHV IRU
FRQGXFWLQJ HIIHFWLYH DQG SURGXFWLYH EULHILQJV
6WDWLVWLFDO 'DWD

7KH TXDOLW\ RI DSSURDFK DQG JRDURXQG EULHILQJV LV


REVHUYHG DV D FDXVDO IDFWRU LQ DSSUR[LPDWHO\  
RI DSSURDFKDQGODQGLQJ DFFLGHQW E\ DIIHFWLQJ
x 8QGHUVWDQGLQJ RI SUHYDLOLQJ FRQGLWLRQV
x +RUL]RQWDO RU YHUWLFDO VLWXDWLRQDO DZDUHQHVV
DQG
x &UHZ FRRUGLQDWLRQ
%ULHILQJ 7HFKQLTXHV

7KH LPSRUWDQFH RI EULHILQJ WHFKQLTXHV RIWHQ LV


XQGHUHVWLPDWHG DOWKRXJK HIIHFWLYH EULHILQJV
FRQWULEXWH WR HQKDQFH FUHZ VWDQGDUGL]DWLRQ DQG
FRPPXQLFDWLRQ

$SSURDFK DQG *RDURXQG %ULHILQJ V

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

:KHWKHU DQWLFLSDWHG RU QRW FKDQJHV LQ DQ DLU WUDIILF


FRQWURO

$7&

FOHDUDQFH

ZHDWKHU

FRQGLWLRQV

$LUFUDIW 6WDWXV

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

7LPHOLQHVV RI %ULHILQJV
5XVKLQJ

GXULQJ

DQG

SHUIRUPDQFH

LH

ILQDO

DSSURDFK

VSHHG DQG ODQGLQJ GLVWDQFH 

GHVFHQW

DQG

DSSURDFK

LV

D
)XHO 6WDWXV

VLJQLILFDQW IDFWRU LQ DSSURDFKDQGODQGLQJ LQFLGHQWV


DQG DFFLGHQWV

5HYLHZ IXHO VWDWXV


7R SUHYHQW DQ\ UXVK LQ LQLWLDWLQJ WKH GHVFHQW DQG
LQFUHDVHG ZRUNORDG LQ FRQGXFWLQJ WKH DSSURDFK WKH
GHVFHQW
DURXQG

SUHSDUDWLRQ
EULHILQJV

DQG

WKH

W\SLFDOO\

DSSURDFK

VKRXOG

EH

DQG

JR

FRPSOHWHG

 PLQXWHV EHIRUH UHDFKLQJ WKH WRSRIGHVFHQW

6FRSH RI %ULHILQJV

)XHO RQ ERDUG

0LQLPXP GLYHUVLRQ IXHO DQG

$YDLODEOH KROGLQJ IXHO DQG WLPH

$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


VHFRQG DSSURDFK RU GLYHUVLRQ

$SSURDFK FRQGLWLRQV LH ZHDWKHU DQG UXQZD\

5XQZD\ LQ XVH W\SH RI DSSURDFK 


([SHFWHG DUULYDO URXWH VWDQGDUG WHUPLQDO DUULYDO
> 67$5 @ RU UDGDU YHFWRUV 

FRQGLWLRQV VSHFLDO KD]DUGV 

/DWHUDO DQG YHUWLFDO QDYLJDWLRQ LH LQWHQGHG

$OWLPHWHU VHWWLQJ 41+ RU 4)( DV UHTXLUHG 

XVH RI DXWRPDWLRQ 


,QVWUXPHQW DSSURDFK SURFHGXUH GHWDLOV

&RPPXQLFDWLRQV

1RQQRUPDO SURFHGXUHV DV DSSOLFDEOH DQG

5HYLHZ DQG GLVFXVVLRQ RI DSSURDFKDQGODQGLQJ

DSSOLFDEOH DOWLPHWHU VHWWLQJ XQLW KHFWRSDVFDOV


RU LQFKHV RIPHUFXU\ 

DVSHFWV

x
DUH

H[SDQGHG

DQG

GLVFXVVHG

7UDQVLWLRQ OHYHO XQOHVV VWDQGDUG IRU WKH FRXQWU\


RU IRU WKH DLUSRUW 

KD]DUGV
7KHVH

)RU LQWHUQDWLRQDO RSHUDWLRQV EH DZDUH RI WKH

7HUPLQDO
LFLQJ

LQ

RU

$SSURDFK %ULHILQJ
LOOXVWUDWH WKH EULHILQJ DQG WR FRQILUP WKH YDULRXV

WXUEXOHQFH
DQG

UXQZD\

$GYLVRU\ PHVVDJHV DV DSSOLFDEOH 

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
FRQGLWLRQV

OLNHO\

FRQGLWLRQV

127$0V

)06 SDJHV DQG 1' VKRXOG EH XVHG WR JXLGH DQG

WKH

GLVFXVV

VKHDU

FRQGLWLRQ  DQG

GHWDLOV LQ WKLV %ULHILQJ 1RWH

IRU

ZHDWKHU
ZLQG

RI

WKH

IOLJKW

LV

SURYLGHG

KHUHDIWHU

$SSURDFK DQG *RDURXQG %ULHILQJ V

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7RSRIGHVFHQW SRLQW

9LVLELOLW\595

PLQLPXPV

DQG

FHLOLQJ

DV

DSSOLFDEOH 
&RQILUP

RU

DGMXVW

WKH

WRSRIGHVFHQW

SRLQW

FRPSXWHG E\ WKH )06 DV D IXQFWLRQ RI WKH H[SHFWHG


DUULYDO LH IROORZLQJ WKH SXEOLVKHG 67$5 RU UDGDU
YHFWRUV 

'HVFHQWGHFLVLRQ PLQLPXPV


0'$ + IRU QRQSUHFLVLRQ DSSURDFKHV

%DURPHWULF

'$ +

IRU

&$7

,/6

DSSURDFKHV RU

$SSURDFK &KDUW


5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV XVLQJ WKH

5DGLRDOWLPHWHU '+ IRU &$7 ,, DQG &$7 ,,,


,/6 DSSURDFKHV

DSSURDFK FKDUW DQG WKH )061' DV DSSOLFDEOH 

'HVLJQDWHG UXQZD\ DQG DSSURDFK W\SH

&KDUW LQGH[ QXPEHU DQG GDWH

0LQLPXP 6DIH $OWLWXGH 06$  UHIHUHQFH SRLQW

/RFDO DLUSRUW UHTXLUHPHQW HJ QRLVH UHVWULFWLRQV


RQ WKH XVH RI WKUXVW UHYHUVHUV HWF 

$LUSRUW FKDUW

VHFWRUV DQG PLQLPXP VHFWRU VDIH DOWLWXGHV

/HWGRZQ

QDYDLG V 

IUHTXHQF\

DQG

5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV XVLQJ WKH

LGHQWLILHU

DLUSRUW FKDUW

FRQILUP WKH FRUUHFW VHWXS RI QDYDLGV 

$LUSRUW HOHYDWLRQ

$SSURDFK
DOWLWXGH

WUDQVLWLRQV
DQG

IL[HV

VSHHG

KROGLQJ

SDWWHUQ

UHTXLUHG QDYDLGV VHWXS 


)LQDO DSSURDFK FRXUVH DQG OHDGLQ UDGLDO 

7HUUDLQ

IHDWXUHV

ORFDWLRQ

DQG

HOHYDWLRQ

)LQDO GHVFHQW SRLQW LI GLIIHUHQW IURP )$) 

9LVXDO GHVFHQWGHFLVLRQ SRLQW 9'3 

0LVVHGDSSURDFK SRLQW 0$3 

7\SLFDO

VSHHG

6SHFLILF KD]DUGV DV DSSOLFDEOH  DQG

,QWHQGHG WXUQRII WD[LZD\

DW

8VH RI DXWRPDWLRQ
'LVFXVV WKH LQWHQGHG XVH RI DXWRPDWLRQ IRU YHUWLFDO
DQG ODWHUDO JXLGDQFH GHSHQGLQJ RQ )06 QDYLJDWLRQ

H[SHFWHG

DFFXUDF\ RQO\ IRU DLUFUDIW QRW HTXLSSHG ZLWK *36 RU

ILQDO

DSSURDFK JURXQG VSHHG *6  DQG

LI *36 35,0$5< /267 LV GLVSOD\HG 

7RXFKGRZQ ]RQH HOHYDWLRQ 7'=( 

8VH

RI

)06

YHUWLFDO

QDYLJDWLRQ

DQG

ODWHUDO

VHOHFWHG YHUWLFDO PRGHV DQG

ODWHUDO PRGHV DQG

0LVVHG DSSURDFK 

/DWHUDO DQG YHUWLFDO QDYLJDWLRQ

6WHSGRZQ

DSSURDFK

LI

FRQVWDQWDQJOH

QRQSUHFLVLRQ DSSURDFK LV QRW DYDLODEOH RU QRW

6SHHG UHVWULFWLRQV

0LQLPXP GLYHUVLRQ IXHO

6HFRQG

DSSURDFK

RWKHU

VKRXOG EH GLVFXVVHG IRU DZDUHQHVV SXUSRVHV

)LQDO DSSURDFK IL[ )$) 

DQG

QDYLJDWLRQ RU XVH RI

OLJKWLQJ

GHVWLQDWLRQ DLUSRUW UHOHYDQW GHWDLOV RU SURFHGXUHV

UXQZD\

,I DQRWKHU DLUSRUW LV ORFDWHG LQ WKH FORVH YLFLQLW\ RI WKH

$SSURDFK SURILOH YLHZ 

YHUWLFDO

DQG

RI

KD]DUGRXV WHUUDLQ RU PDQPDGH REVWDFOHV 

$SSURDFK

H[SHFWHG YLVXDO UHIHUHQFHV

FRQVWUDLQWVUHVWULFWLRQV

5XQZD\ OHQJWK ZLGWK DQG VORSH

SRVVLEOH 

GLVFXVV

WKH

W\SH

/DQGLQJ DQG 6WRSSLQJ

RI

DSSURDFK LI D GLIIHUHQW UXQZD\ DQGRU W\SH RI

'LVFXVV WKH LQWHQGHG

DSSURDFK LV HQYLVDJHG RU GLYHUVLRQ WR WKH

ODQGLQJ

LI GLIIHUHQW IURP IXOO IODSV 

DOWHUQDWH

$SSURDFK DQG *RDURXQG %ULHILQJ V

3DJH 

IODSV

FRQILJXUDWLRQ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HYLHZ DQG GLVFXVV WKH IROORZLQJ IHDWXUHV RI WKH

7KH

LQWHQGHG ODQGLQJ UXQZD\

IROORZLQJ NH\ DVSHFWV

6XUIDFH FRQGLWLRQ

JRDURXQG

*RDURXQG

EULHILQJ

FDOORXW

VKRXOG

LH

UHFDOO

ORXG

EULHIO\

DQG

WKH

FOHDU

JRDURXQG  IODSV FDOO 

,QWHQGHG XVH RI DXWREUDNH DQG WKUXVW UHYHUVHUV

DQG

3)31) WDVN VKDULQJ LH IORZ RI UHVSHFWLYH


DFWLRQV LQFOXGLQJ XVH RI $3 VSHHG UHVWULFWLRQV

JRDURXQG

([SHFWHG UXQZD\ WXUQRII

DOWLWXGH

SDUDPHWHUH[FHVVLYH

GHYLDWLRQ FDOOV 

7D[L WR JDWH

,QWHQGHG XVH RI DXWRPDWLRQ LH DXWRPDWLF RU


PDQXDO

JRDURXQG

XVH

RI

)06

ODWHUDO

QDYLJDWLRQ RU XVH RI VHOHFWHG PRGHV IRU PLVVHG

5HYLHZ DQG GLVFXVV

DSSURDFK 

7KH DQWLFLSDWHG WD[LZD\V WR WD[L WR WKH DVVLJQHG

JDWH HJ EDFNWUDFN RQ DFWLYH UXQZD\ RU RQ

0LVVHGDSSURDFK ODWHUDO QDYLJDWLRQ DQG YHUWLFDO

SDUDOOHO UXQZD\ ZLWK VSHFLDO HPSKDVLV RQ WKH

SURILOH HJ KLJKOLJKWLQJ REVWDFOHV DQG WHUUDLQ

SRVVLEOH

IHDWXUHV DV DSSOLFDEOH  DQG

FURVVLQJ

RI

DFWLYH

UXQZD\V

DV

PDUNLQJ

RI

DSSOLFDEOH 

x
1RQVWDQGDUG

OLJKWLQJ

DQGRU

WD[LZD\V DQGRU

3RVVLEOH

ZRUN

LQ

,QWHQWLRQV LH VHFRQG DSSURDFK RU GLYHUVLRQ 

,W LV UHFRPPHQGHG WR EULHIO\ UHFDOO WKH PDLQ SRLQWV RI


SURJUHVV

RQ

UXQZD\V

WKH

DQG

JRDURXQG

DQG

PLVVHGDSSURDFK

ZKHQ

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

6XPPDU\ RI .H\ 3RLQWV


&$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

VSHFLILF &$7 ,, &$7 ,,, EULHILQJ LQ DFFRUGDQFH ZLWK


FRPSDQ\ 623V

WKDW

DUH

UHOHYDQW

IRU

WKH

SDUWLFXODU

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

*RDURXQG %ULHILQJ
$ JRDURXQG EULHILQJ VKRXOG

EH

LQFOXGHG

LQ

WKH

GHVFHQWDQGDSSURDFK EULHILQJ KLJKOLJKWLQJ WKH NH\


SRLQWV RI WKH JRDURXQG

LWHPV

DSSURDFK DQG ODQGLQJ VXFK DV VSHFLILF DSSURDFK

PDQHXYHU

DQG

0LQLPXP VDIH DOWLWXGH

7HUUDLQ DQG PDQPDGH REVWDFOHV IHDWXUHV

:HDWKHU DQG UXQZD\ FRQGLWLRQ

2WKHU DSSURDFK KD]DUGV DV DSSOLFDEOH HJ


YLVXDO LOOXVLRQV 

PLVVHG

DSSURDFK DQG WKH WDVN VKDULQJ XQGHU QRUPDO RU

DEQRUPDO  HPHUJHQF\ FRQGLWLRQV

$SSOLFDEOH PLQLPXPV YLVLELOLW\ RU 595 FHLOLQJ


DV DSSOLFDEOH 

$SSURDFK DQG *RDURXQG %ULHILQJ V

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ 5HIHUHQFHV

$SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH 

)LQDO DSSURDFK IOLJKW SDWK DQJOH DQG YHUWLFDO

,QWHUQDWLRQDO

VSHHG  DQG

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV $SSHQGL[  

*RDURXQG DOWLWXGH DQG PLVVHGDSSURDFK LQLWLDO


VWHSV

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

RSHUDWLRQV

3$16236

'RF

 

9ROXPH , )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW


1R  DSSOLFDEOH 1RY 

$VVRFLDWHG %ULHILQJ 1RWHV

'RF  

7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG LQ


DVVRFLDWLRQ

ZLWK

WKH

DERYH

LQIRUPDWLRQ

IRU

FRPSOHWH RYHUYLHZ RI WKH GHVFHQW DQG DSSURDFK

 2SHUDWLQJ 3KLORVRSK\  623V

  (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

  +XPDQ )DFWRUV LQ $SSURDFKDQG

)$5  &RFNSLW &KHFN 3URFHGXUH IRU


QRUPDO DQG QRQQRUPDO FRQGLWLRQV

SUHSDUDWLRQ

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV PDQXDO

-$5236  DQG DVVRFLDWHG $SSHQGL[  %


 J 

/DQGLQJ $FFLGHQWV

  &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ


$FFLGHQWV

  %HLQJ 3UHSDUHG WR *RDURXQG

  )O\LQJ 6WDELOL]HG $SSURDFKHV

$SSURDFK DQG *RDURXQG %ULHILQJ V

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

&UHZ&RRUGLQDWLRQ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQGODQGLQJ%ULHILQJ1RWH
+XPDQ)DFWRUVLQ$SSURDFKDQG/DQGLQJ$FFLGHQWV

7KH IROORZLQJ IDFWRUV DQG FRQGLWLRQV RIWHQ DUH FLWHG

,QWURGXFWLRQ

LQ GLVFXVVLQJ GHYLDWLRQV IURP 623V


7KLV %ULHILQJ 1RWH SURYLGHV D VXPPDU\ RI KXPDQ
IDFWRUV

LVVXHV

LGHQWLILHG

LQ

DSSURDFKDQGODQGLQJ

DELOLW\ RU WDVN RYHUORDG 

DFFLGHQWV

7KLV VXPPDU\ PD\ EH XVHG HLWKHU WR DVVHVV

,QDGHTXDWH

NQRZOHGJH

RI

RU

IDLOXUH

LQFOXGHV
&RPSDQ\ H[SRVXUH DQG GHYHORS FRUUHVSRQGLQJ

,QGLYLGXDO H[SRVXUH DQG GHYHORS FRUUHVSRQGLQJ


SHUVRQDO OLQHVRIGHIHQVH

8OWLPDWHO\

KXPDQ

WUDLQLQJ

TXDOLW\ RI ZRUGLQJ RU SKUDVLQJ DQGRU

SHUFHSWLRQ RI UXOH RU SURFHGXUH RU DFWLRQ DV


LQDSSURSULDWH

6WDWLVWLFDO 'DWD

,QVXIILFLHQW

HPSKDVLV

RQ

VWULFW

DGKHUHQFH

IDFWRUV

DUH

LQYROYHG

LQ

WUDLQLQJ

DOO

/DFN RI YLJLODQFH HJ IDWLJXH 

:KHWKHU FUHZUHODWHG $7&UHODWHG PDLQWHQDQFH

'LVWUDFWLRQV HJ GXH WR FRFNSLW DFWLYLWLHV 

UHODWHG RUJDQL]DWLRQUHODWHG RU GHVLJQUHODWHG HDFK


OLQN RI WKH HUURU FKDLQ LQYROYHV KXPDQ EHLQJV DQG

,QWHUUXSWLRQV

,QFRUUHFW
DEVHQFH

DQG

FRPSOLDQFH

DVVRFLDWHG

WR

SLORWFRQWUROOHU

PDQDJHPHQW
RI

RI

GHFLVLRQPDNLQJ

SULRULWLHV
PRGHO

IRU

LH
WLPH

QRUPDO

ZLWK

5HGXFHG DWWHQWLRQ WXQQHO YLVLRQ LQ DEQRUPDO RU


KLJKZRUNORDG FRQGLWLRQV

6WDQGDUG RSHUDWLQJ SURFHGXUHV 623V 

623V

GXH

FULWLFDO VLWXDWLRQV 

+XPDQ )DFWRUV ,VVXHV LQ 

HIIHFWLYH

HJ

FRPPXQLFDWLRQV 

WKHUHIRUH KXPDQ GHFLVLRQV DQG EHKDYLRUV

HQVXUH

WR

623V GXULQJ WUDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW

LQFLGHQWV DQG DFFLGHQWV

7R

WR

XQGHUVWDQG WKH UXOH SURFHGXUH RU DFWLRQ WKLV

SUHYHQWLRQ VWUDWHJLHV RU

7DVN VDWXUDWLRQ LH DEVHQFH RI PXOWLWDVNLQJ

SXEOLVKHG

FKHFNOLVWV

,QFRUUHFW

&50

WHFKQLTXHV

LH

IRU

HIIHFWLYH

FURVVFKHFN FUHZ FRRUGLQDWLRQ RU EDFNXS 

DQG

VWDQGDUGV FDOOV  LW LV LPSRUWDQW WR XQGHUVWDQG ZK\

&RPSDQ\ SROLFLHV HJ UHJDUGLQJ VFKHGXOHV


FRVWV JRDURXQG DQG GLYHUVLRQ HYHQWV 

SLORWV LQWHQWLRQDOO\ RU LQDGYHUWHQWO\ GHYLDWH IURP UXOHV


RU VWDQGDUGV

3LORWV UDUHO\ GHYLDWH LQWHQWLRQDOO\ IURP 623V LQ PRVW

FDVHV WKH SURFHGXUH WKDW ZDV IROORZHG LQ SODFH RI

2WKHU SROLFLHV HJ FUHZ GXW\ WLPH 


3HUVRQDO GHVLUHV RU FRQVWUDLQWV LH SHUVRQDO
VFKHGXOH IRFXV RQ PLVVLRQ FRPSOHWLRQ 

WKH SXEOLVKHG SURFHGXUH VHHPHG WR EH DSSURSULDWH


IRU WKH SUHYDLOLQJ FLUFXPVWDQFHV FRQVLGHULQJ WKH
LQIRUPDWLRQ DYDLODEOH DW WKH WLPH

&RPSODFHQF\ DQGRU

+LJK WLPH RQ DLUFUDIW W\SH LH RYHUFRQILGHQFH 

+XPDQ )DFWRUV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

8VH RI DXWRPDWLRQ

%ULHILQJ 7HFKQLTXHV

(UURUV LQ XVLQJ DQG PDQDJLQJ DXWRPDWLF IOLJKW


V\VWHPV DQGRU ODFN RI DZDUHQHVV RI RSHUDWLQJ
PRGHV DUH REVHUYHG DV FDXVDO IDFWRUV LQ PRUH WKDQ
  RI DSSURDFKDQGODQGLQJ DFFLGHQWV DQG QHDU
DFFLGHQWV
7KHVH IDFWRUV FDQ UHVXOW LQ IO\LQJ DQ XQLQWHQGHG IOLJKW
SDWK ZKLFK  LI QRW UHFRJQL]HG  FDQ FDXVH D OHVV
WKDQGHVLUHG WHUUDLQ VHSDUDWLRQ RU D &),7
7KH IROORZLQJ FRPPRQ HUURUV LQ KDQGOLQJ DXWR IOLJKW
V\VWHPV FDQ LQFUHDVH WKH ULVN RI DSSURDFKDQG
ODQGLQJ DFFLGHQWV
x ,QDGYHUWHQW VHOHFWLRQ RI DQ LQFRUUHFW PRGH
x )DLOXUH WR YHULI\ WKH VHOHFWHG PRGH E\ UHIHUHQFH
WR WKH IOLJKW PRGH DQQXQFLDWRU )0$ 
x )DLOXUH WR DUP D PRGH ZKHQ UHTXLUHG HJ IDLOXUH
WR DUP WKH ORFDOL]HU RU DSSURDFK PRGH ZKHQ
FOHDUHG IRU /2& RU ,/6 LQWHUFHSWLRQ 
x )DLOXUH WR VHOHFW D UHTXLUHG JXLGDQFH WDUJHW
HJ IDLOXUH WR VHW WKH ,/6 ILQDO DSSURDFK FRXUVH 
x ,QDGYHUWHQW FKDQJH RI D JXLGDQFH WDUJHW
LH FKDQJLQJ WKH VSHHG WDUJHW LQVWHDG RI
FKDQJLQJ WKH VHOHFWHG KHDGLQJ 
x 6HOHFWLRQ RI DQ LQFRUUHFW DOWLWXGH DQG IDLOXUH WR
FRQILUP WKH VHOHFWLRQ RQ WKH SULPDU\ IOLJKW GLVSOD\
3)' 
x 6HOHFWLRQ RI WKH DOWLWXGH WDUJHW WR DQ\ DOWLWXGH
EHORZ WKH ILQDO DSSURDFK LQWHUFHSW DOWLWXGH GXULQJ
DSSURDFK
x 3UHRFFXSDWLRQ ZLWK )06 SURJUDPPLQJ GXULQJ D
FULWLFDO IOLJKW SKDVH ZLWK FRQVHTXHQW ORVV RI
VLWXDWLRQDO DZDUHQHVV DQGRU
x )DLOXUH WR PRQLWRU WKH DXWRPDWLRQ XVLQJ UDZ GDWD

7KH LPSRUWDQFH RI EULHILQJ WHFKQLTXHV RIWHQ LV


XQGHUHVWLPDWHG DOWKRXJK HIIHFWLYH EULHILQJV
FRQWULEXWH WR HQKDQFH FUHZ VWDQGDUGL]DWLRQ DQG
FRPPXQLFDWLRQ
7KH URXWLQH DQG IRUPDO UHSHWLWLRQ RI WKH VDPH SRLQWV
RQ HDFK VHFWRU PD\ EHFRPH FRXQWHUSURGXFWLYH
DGDSWLQJ DQG H[SDQGLQJ WKH EULHILQJ E\ KLJKOLJKWLQJ
WKH VSHFLDO DVSHFWV RI WKH DSSURDFK RU WKH DFWXDO
ZHDWKHU FRQGLWLRQV DQG FLUFXPVWDQFHV RI WKH GD\
UHVXOW LQ PRUH OLYHO\ DQG HIIHFWLYH EULHILQJV
7KH EULHILQJ VKRXOG DWWUDFW WKH DWWHQWLRQ RI WKH 31)
7KH EULHILQJ VKRXOG KHOS ERWK WKH 3) JLYLQJ WKH
EULHILQJ DQG WKH 31) UHFHLYLQJ DQG DFNQRZOHGJLQJ
WKH EULHILQJ WR XQGHUVWDQG WKH VHTXHQFH RI HYHQWV
DQG DFWLRQV WKH VDIHW\ NH\ SRLQWV VSHFLDO KD]DUGV
DQG FLUFXPVWDQFHV RI WKH DSSURDFK
$Q LQWHUDFWLYH EULHILQJ IXOILOOV WZR LPSRUWDQW JRDOV RI
WKH EULHILQJ SURYLGH WKH 3) DQG WKH 31) ZLWK DQ
RSSRUWXQLW\ WR
x &RUUHFW HDFK RWKHU DQG
x 6KDUH D FRPPRQ PHQWDO PRGHO RI WKH
DSSURDFK
&UHZ$7& &RPPXQLFDWLRQV

(IIHFWLYH FRPPXQLFDWLRQ LV DFKLHYHG ZKHQ RXU


PHQWDO SURFHVV IRU LQWHUSUHWLQJ WKH LQIRUPDWLRQ
FRQWDLQHG LQ D PHVVDJH DFFRPPRGDWHV WKH
PHVVDJH EHLQJ UHFHLYHG
7KLV PHQWDO SURFHVV FDQ EH VXPPDUL]HG DV IROORZV
x +RZ GR ZH SHUFHLYH WKH PHVVDJH "
x +RZ GR ZH UHFRQVWUXFW WKH LQIRUPDWLRQ
FRQWDLQHG LQ WKH PHVVDJH "
x +RZ GR ZH OLQN WKH LQIRUPDWLRQ WR DQ REMHFWLYH
RU DQ H[SHFWDWLRQ " DQG
x :KDW ELDV RU HUURU LV LQWURGXFHG LQ WKLV SURFHVV"
&UHZ 5HVRXUFH 0DQDJHPHQW &50 UHVHDUFKHV
KLJKOLJKW WKH LPSRUWDQFH RI WKH FRQWH[W DQG
H[SHFWDWLRQV LQ WKLV PHQWDO SURFHVV

7KH %ULHILQJ 1RWH   2SHUDWLRQV *ROGHQ 5XOHV


DGGUHVVHV DVSHFWV WKDW DUH FRQVLGHUHG IUHTXHQW
FDXVDO IDFWRUV LQ DSSURDFK DQG ODQGLQJ DFFLGHQWV
VXFK DV
x /DFN RI VLWXDWLRQDO  SRVLWLRQDO DZDUHQHVV
x ,QWHUDFWLRQ ZLWK DXWRPDWLRQ
x 2YHUUHOLDQFH RQ DXWRPDWLRQ DQGRU
x /DFN RI FUHZ FURVVFKHFN

+XPDQ )DFWRUV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

7KH

IROORZLQJ

IDFWRUV

PD\

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

DIIHFW

WKH

FRUUHFW

XQGHUVWDQGLQJ RI FRPPXQLFDWLRQV

0LVVLQJ RU PLVLQWHUSUHWLQJ DQ $7& LQVWUXFWLRQ


LH SRVVLEO\ UHVXOWLQJ LQ D WUDIILF FRQIOLFW RU
UXQZD\ LQFXUVLRQ 

+LJK ZRUNORDG

)DWLJXH

1RQDGKHUHQFH WR VWHULOH FRFNSLW UXOH

'LVWUDFWLRQV

,QWHUUXSWLRQV DQGRU

&RQIOLFWV DQG SUHVVXUHV

2PLWWLQJ DQ DFWLRQ DQG IDLOLQJ WR GHWHFW DQG


FRUUHFW

WKH

UHVXOWLQJ

FRQILJXUDWLRQ

LI

DEQRUPDO

LQWHUUXSWHG

FRQGLWLRQ

GXULQJ

RU

QRUPDO

FKHFNOLVW HJ DOWLPHWHU VHWWLQJ  DQGRU

/HDYLQJ

XQFHUWDLQWLHV

XQUHVROYHG

HJ

UHJDUGLQJ DQ $7& LQVWUXFWLRQ RU DQ DEQRUPDO


FRQGLWLRQ 

7KLV PD\ UHVXOW LQ 


$OWLPHWHU VHWWLQJ DQG DOWLWXGH GHYLDWLRQ LVVXHV

,QFRPSOHWH FRPPXQLFDWLRQV

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

8VH RI QRQVWDQGDUG SKUDVHRORJ\ DQGRU

)DLOXUH WR OLVWHQ RU UHVSRQG

,QWUDFUHZ &RPPXQLFDWLRQV
,QWHUUXSWLRQV DQG GLVWUDFWLRQV LQ WKH FRFNSLW EUHDN
WKH

IORZ

SDWWHUQ

RI

RQJRLQJ

FRFNSLW

DFWLYLWLHV

LH DFWLRQV RU FRPPXQLFDWLRQV  VXFK DV

623V

1RUPDO FKHFNOLVWV

&RPPXQLFDWLRQV

+LJK ZRUNORDG

,QDGHTXDWH SLORWV\VWHP LQWHUIDFH

,QFRUUHFW SLORWFRQWUROOHU FRPPXQLFDWLRQ

'HYLDWLRQ IURP QRUPDO WDVN VKDULQJ

,QWHUUXSWLRQV DQG GLVWUDFWLRQV DQGRU

$EVHQFH

RI

HIIHFWLYH

EDFNXS

EHWZHHQ

FUHZPHPEHUV
LH

OLVWHQLQJ

SURFHVVLQJ

UHVSRQGLQJ 

6WULFW DGKHUHQFH WR GHILQHG WDVN VKDULQJ IRU QRUPDO

0RQLWRULQJ WDVNV DQGRU

RI QRUPDO FKHFNOLVWV DUH WKH PRVW HIIHFWLYH OLQHVRI

3UREOHP VROYLQJ DFWLYLWLHV

RU DEQRUPDOHPHUJHQF\ FRQGLWLRQV DQG FRUUHFW XVH


GHIHQVH DJDLQVW DOWLPHWHU VHWWLQJ HUURUV

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

FRPSHWLQJ RU SUHHPSWLQJ WDVNV

RIWHQ

DUH

FLUFXPVWDQFHV

FLWHG

ZKHQ

IDFWRUV

GLVFXVVLQJ

DQG

HUURUV

UXVKHG

DQG

XQVWDELOL]HG DSSURDFKHV

%HLQJ FRQIURQWHG ZLWK FRQFXUUHQW WDVN GHPDQGV WKH

QDWXUDO KXPDQ WHQGHQF\ OHDGV WR SHUIRUPLQJ RQH


WDVN WR WKH GHWULPHQW RI DQRWKHU

)DWLJXH

UHJDUGOHVV

RI

VKRUWPHGLXPKDXO

RU

ORQJKDXO RSHUDWLRQ
7KLV

8QOHVV PLWLJDWHG E\ DGHTXDWH WHFKQLTXHV LQ RUGHU WR

KLJKOLJKWV

WKH

FRXQWHUPHDVXUHV

VHW SULRULWLHV WKLV GLVUXSWLRQ DQG ODSVH RI DWWHQWLRQ

YLJLODQFH

PD\ UHVXOW LQ

IROORZLQJ

DQG

WR

QHHG
UHVWRUH

DOHUWQHVV

IRU

IRU
WKH
WKH

GHYHORSLQJ
OHYHO

RI

GHVFHQW

DSSURDFK DQG ODQGLQJ

1RW PRQLWRULQJ WKH IOLJKW SDWK SRVVLEO\ UHVXOWLQJ

LQ DQ DOWLWXGH RU FRXUVH GHYLDWLRQ RU D FRQWUROOHG


IOLJKW LQWR WHUUDLQ 

3UHVVXUH RI IOLJKW VFKHGXOH HJ PDNLQJ XS IRU


WDNHRII GHOD\ 

+XPDQ )DFWRUV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$Q\

FUHZLQGXFHG

FLUFXPVWDQFH

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

RU

UHVXOWLQJ

FRQWUROOHULQGXFHG

LQ

LQVXIILFLHQW

WLPH

SODQ SUHSDUH DQG H[HFXWH D VDIH DSSURDFK

7KLV LQFOXGHV DFFHSWLQJ UHTXHVWV IURP $7& IRU

IO\LQJ

KLJKHU

DQGRU

IDVWHU

WKDQ

GHVLUHG

DQGRU


x

x
D

ODVWPLQXWH

IRU SUHYDLOLQJ ZLQG DQG UXQZD\ FRQGLWLRQV RU

IROORZLQJ

PDOIXQFWLRQ

DIIHFWLQJ

WKH

&DSWDLQ ZKHQ 31) WDNLQJ RYHU FRQWURO DQG

/DWH WDNHRYHU IURP DXWRPDWLRQ ZKHQ UHTXLUHG

/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 

/DFN RI DZDUHQHVV RI WDLO ZLQG FRPSRQHQW


,QFRUUHFW

DQWLFLSDWLRQ

RI

DLUFUDIW

)DLOXUH

WR

,QRSHUDWLYH HTXLSPHQW QRW DFFRXQWHG IRU SHU


0(/

GHFHOHUDWLRQ

RU

PRUH

EUDNH

EHLQJ

8QGHWHFWHG WKUXVW DV\PPHWU\ LH IRUZDUG 

UHFRJQL]H
RU

WR

H[FHVVLYH

UHPHPEHU

WKH

SDUDPHWHU
H[FHVVLYH

$GYHUVH ZLQG  FURVVZLQG ODQGLQJ

7KH

VWDELOL]DWLRQ KHLJKW RU VKRUWO\ WKHUHDIWHU

GLVFXVVLQJ

H[FHVVLYH

FRQILGHQFH

LQ

WKH

3)

H[FHVVLYH

GHYLDWLRQV

RU

LQ

IROORZLQJ

KXPDQ

HYHQWV

IDFWRUV

RIWHQ

LQYROYLQJ

DUH

DGYHUVH

FLWHG

LQ

ZLQG

FURVVZLQG FRQGLWLRQV

LQ

5HOXFWDQFH

WR

UHFRJQL]H

FKDQJHV

LQ

ODQGLQJ

GDWD RYHU WLPH HJ ZLQG GLUHFWLRQ VKLIW ZLQG

3)31) H[FHVVLYH UHOLDQFH RQ HDFK RWKHU LQ


FDOOLQJ

RQH

UHYHUVH DV\PPHWULF WKUXVW FRQGLWLRQ 

%HOLHI WKDW WKH DLUFUDIW ZLOO EH VWDELOL]HG DW WKH

31)

HJ

LQRSHUDWLYH  DQGRU

DFKLHYLQJ D WLPHO\ VWDELOL]DWLRQ

YHORFLW\ FKDQJH RU ZLQG JXVWLQHVV LQFUHDVH 

FDOOLQJ

JRDURXQG DQGRU

,QFRUUHFW DVVHVVPHQW RI ODQGLQJ GLVWDQFH

DURXQG E\ WKH )LUVW 2IILFHU DV 3) 

DFFRPPRGDWH

SDUDPHWHUGHYLDWLRQ FULWHULD

IRU

ODQGLQJ IROORZLQJ WKH FDOO RU LQLWLDWLRQ RI D JR

WR

GHYLDWLRQV

OLPLW

FDSDELOLW\

JOLGHVORSH

FURVVZLQG

,QVXIILFLHQW $7& DZDUHQHVV RI FUHZ RU DLUFUDIW

FKDUDFWHULVWLFV LQ OHYHOIOLJKW RU RQ D GHJUHH

RI

IO\LQJ VKRUWHU URXWLQJV WKDQ GHVLUHG

IDLOLQJ WR DUP WKH DSSURDFK PRGH 

DVVHVVPHQW

FRQILJXUDWLRQ RU EUDNLQJ FDSDELOLW\

FKDQJH

,QFRUUHFW

SUHYDLOLQJ UXQZD\ FRQGLWLRQV

WR

6HHNLQJ

DQ\

HYLGHQFH

WR

FRQILUP

WKH

LQLWLDO

LQIRUPDWLRQ DQG LQLWLDO RSWLRQV LH UHOXFWDQFH WR

9LVXDO LOOXVLRQV GXULQJ WKH DFTXLVLWLRQ RI YLVXDO

FKDQJH SUHHVWDEOLVKHG SODQV 

UHIHUHQFHV RU GXULQJ WKH YLVXDO VHJPHQW

5HOXFWDQFH WR

GLYHUW

WR

DQ

DLUSRUW

ZLWK

OHVV

FURVVZLQG FRQGLWLRQV DQGRU


5XQZD\ H[FXUVLRQV DQG RYHUUXQV

7KH

IROORZLQJ

IDFWRUV

DUH

UHFXUUHQW

x
LQ

WKH DLUFUDIW DWWLWXGH DQG IOLJKW SDWK LQ D KLJKO\

UXQZD\

G\QDPLF VLWXDWLRQ

H[FXUVLRQV DQG RYHUUXQV LH KLJKOLJKWLQJ KXPDQ


IDFWRUV

LQYROYLQJ

FRQWUROOHUV

IOLJKWFUHZ

DQG

6XPPDU\ RI NH\ SRLQWV

PDLQWHQDQFH SHUVRQQHO DOLNH 

1R JRDURXQG GHFLVLRQ ZKHQ ZDUUDQWHG

,QDFFXUDWH ZHDWKHU LQIRUPDWLRQ RQ

/DFN RI WLPH WR REVHUYH HYDOXDWH DQG FRQWURO

$GGUHVVLQJ +XPDQ )DFWRUV LVVXHV LQ DSSURDFKDQG


ODQGLQJ LQFLGHQWV DQG DFFLGHQWV LV DQ HIIRUW WKDW

VXUIDFH ZLQG

PXVW LQFOXGH

UXQZD\ FRQGLWLRQ DQGRU

'HILQHG FRPSDQ\ VDIHW\ FXOWXUH DQG SROLFLHV

ZLQG VKHDU

5HODWHG SUHYHQWLRQ VWUDWHJLHV

+XPDQ )DFWRUV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5REXVW VWDQGDUG RSHUDWLQJ SURFHGXUHV

(IIHFWLYH &50 SUDFWLFHV DQG

3HUVRQDO OLQHVRIGHIHQVH

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV $SSHQGL[  

$VVRFLDWHG %ULHILQJ 1RWHV

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

RSHUDWLRQV

3$16236

'RF

 

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

 2SHUDWLQJ 3KLORVRSK\  623V

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

  8VH RI 1RUPDO &KHFNOLVWV

 $SSURDFK DQG *RDURXQG %ULHILQJV

  &50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ

x
x

  ,QWUDFRFNSLW &RPPXQLFDWLRQV

+XPDQ

,&$2

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG

7UDLQLQJ

0DQXDO

DLUFUDIW GLVSDWFKHUV
-$5236



7UDLQLQJ

$OWLPHWHU

)DFWRUV

&50 7UDLQLQJ IRU SLORWV IOLJKW DWWHQGDQWV DQG

  $OWLPHWHU 6HWWLQJ 8VH RI UDGLR

  $OWLWXGH 'HYLDWLRQV

'RF

)$5    RU  

'LVWUDFWLRQV LQ WKH &RFNSLW

0DQXDO

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

0DQDJLQJ ,QWHUUXSWLRQV DQG

3UHYHQWLRQ

)DFWRUV LQ $LU 7UDIILF &RQWURO &LUFXODU  

$FFLGHQW

'RF  

$FFLGHQWV
  (IIHFWLYH $7&&UHZ &RPPXQLFDWLRQV

 

,&$2

2YHUUXQV

+XPDQ )DFWRUV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 



RU



&50

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH
&50,VVXHVLQ$SSURDFKDQG/DQGLQJ$FFLGHQWV

$SSURDFKDQGODQGLQJ DFFLGHQWV LQYROYH WKH HQWLUH


UDQJH RI &50 DQG +XPDQ )DFWRUV LVVXHV
7KH IROORZLQJ GLVFXVVLRQ LV D IRFXVHG EXW OLPLWHG
RYHUYLHZ RI WKLV EURDG VXEMHFW
7KH PLQLPXP FRQWHQW RI &50 WUDLQLQJ LV GHILQHG E\
UHJXODWLRQV DQG DLUOLQHV VKRXOG FRQVLGHU DGGLWLRQDO
&50 WUDLQLQJ WR DFFRXQW IRU VSHFLILF UHTXLUHPHQWV
VXFK DV PXOWLFXOWXUDO IOLJKW FUHZV DQG GLIIHUHQW
DUHDV RI RSHUDWLRQ

7KH IOLJKWFUHZ LV FRQVLGHUHG WR EH WKH ODVW OLQHRI


GHIHQVH EXW LV DOVR WKH ODVW OLQN LQ WKH HUURU FKDLQ
&RPSDQ\ VDIHW\ FXOWXUH DQG SROLFLHV VKRXOG
WKHUHIRUH
x 6XSSRUW WKH LPSOHPHQWDWLRQ RI &50 SUDFWLFHV
x )DFLOLWDWH WKH PLWLJDWLRQ RI RUJDQL]DWLRQDO IDFWRUV
DQG
x ,GHQWLI\ DQG DGGUHVV SUHFXUVRUV RI SRWHQWLDO
LQFLGHQWV RU DFFLGHQWV

6WDWLVWLFDO GDWD

,QWHUQDWLRQDO &XOWXUDO )DFWRUV

,QWURGXFWLRQ

$V PRUH RSHUDWRUV DFFHVV WR JOREDO LQWHUQDWLRQDO


RSHUDWLRQ ZLWK PXOWLQDWLRQDOLW\ FUHZPHPEHUV
FURVVFXOWXUDO LVVXHV VKRXOG EHFRPH DQ LPSRUWDQW
SDUW RI D FXVWRPL]HG &50 WUDLQLQJ
7KH GLVFXVVLRQ RI FURVVFXOWXUDO IDFWRUV VKRXOG
LQFOXGH
x 8QGHUVWDQGLQJ GLIIHUHQFHV EHWZHHQ UDFH DQG
FXOWXUH
x +LJKOLJKWLQJ WKH LPSRUWDQFH RI FXOWXUDO DQG
QDWLRQDO VHQVLWLYLWLHV
x 3URPRWLQJ WKH XVH RI VWDQGDUG SKUDVHRORJ\ DV D
FRPPRQ ZRUNLQJ ODQJXDJH

&50 LVVXHV KDYH EHHQ LGHQWLILHG DV FLUFXPVWDQWLDO


IDFWRUV LQ PRUH WKDQ   RI DSSURDFKDQGODQGLQJ
LQFLGHQWV RU DFFLGHQWV
%HFDXVH &50 SUDFWLFHV DUH D NH\ IDFWRU LQ
IOLJKWFUHZ DGKHUHQFH WR DQG SHUIRUPDQFH RI QRUPDO
DQG QRQQRUPDO SURFHGXUHV DQG LQ WKH LQWHUDFWLRQ
ZLWK DXWRPDWHG V\VWHPV &50 LVVXHV DUH LQYROYHG
WR VRPH GHJUHH LQ HYHU\ LQFLGHQW RU DFFLGHQW
*HQHUDO

7KH IOLJKW FUHZV FRQWULEXWLRQ WR DQ LQFLGHQW RU


DFFLGHQW RIWHQ LV FRQVLGHUHG WR EH ZKDW WKH IOLJKW
FUHZ GLG RU GLG QRW GR
&50 FRQFHSWV DQG WHFKQLTXHV HQKDQFH HIIHFWLYH
FURVV PRQLWRULQJ DQG EDFNXS E\ HDFK FUHZPHPEHU

/HDGHUVKLS

7KH UROH RI WKH SLORWLQFRPPDQG 3,& LQ FRPSOH[


DQG GHPDQGLQJ VLWXDWLRQV VKRXOG EH HPSKDVL]HG
GXULQJ &50 WUDLQLQJ
7KLV LQFOXGHV IRU H[DPSOH DSSURDFKHV ZLWK
PDUJLQDO ZHDWKHU FRQGLWLRQV RU DEQRUPDO 
HPHUJHQF\ FRQGLWLRQV WKDW DUH EH\RQG WKH VFRSH RI
SXEOLVKHG SURFHGXUHV

&RPSDQ\ &XOWXUH DQG 3ROLFLHV

,W VKRXOG EH UHFRJQL]HG WKDW PDQ\ IDFWRUV


DVVRFLDWHG ZLWK DFFLGHQWV DUH HPEHGGHG LQ WKH
JOREDO DYLDWLRQ V\VWHP RUJDQL]DWLRQ

&50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7HDPZRUN

,QTXLU\ DQG $GYRFDF\

7KH FDSWDLQV 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

1RW XQGHUVWRRG HJ EHLQJ DVVLJQHG DQ DOWLWXGH


EHORZ

+XPDQ

UHODWLRQV

HJ

HIIHFWLYH

LQWUDFUHZ

WKH

VHFWRU

06$

ZKHQ

WKH

PLQLPXP

YHFWRULQJ DOWLWXGH LV QRW SXEOLVKHG  RU

FRPPXQLFDWLRQV 

&KDOOHQJLQJ HJ EHLQJ UHTXHVWHG WR IO\ KLJKHU

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

&UHZ

FRRUGLQDWLRQ

PXWXDO

PRQLWRULQJ

ZLWKRXW UHTXHVWLQJ FODULILFDWLRQ RU EHLQJ VXUH WKDW

DQG

WKH\ FDQ FRPSO\ VDIHO\ ZLWK WKH $7& LQVWUXFWLRQV

EDFNXS
3HUIRUPLQJ

SUHIOLJKW

EULHILQJ

WKDW

LQFOXGHV

%ULHILQJV

WKH IOLJKW FUHZ DQG FDELQ FUHZ HVWDEOLVKHV WKH EDVLV


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

7LPH 0DQDJHPHQW

DQG LQWHUSUHWDWLRQ RI WKH VWHULOH FRFNSLW UXOH DV


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
$SSURDFKDQGODQGLQJ

%ULHILQJ
LQFLGHQWV

DQG

DFFLGHQWV

WKH PHQWDO UHVRXUFHV QHHGHG WR

DURXQG  RU

*ROGHQ

5XOHV

PRGHO

IRU

XVH

LQ

WLPHFULWLFDO

&RSLQJ ZLWK XQH[SHFWHG GLVWUDFWLRQ GLVWXUEDQFH DQG


FRQWLQJHQF\

FRQGXFW

2SHUDWLRQV

,QWHUUXSWLRQV DQG 'LVWUDFWLRQV

0DNH WKH UHTXLUHG GHFLVLRQ LH LQLWLDWH WKH JR

&RUUHFWO\

VLWXDWLRQV

DURXQG KDV QRW EHHQ SUHSDUHG IOLJKW FUHZ PD\ ODFN



GHFLVLRQPDNLQJ

LOOXVWUDWH WKDW LI DQ RSWLRQ HJ SHUIRUPLQJ D JR

1RWH

GHVFULEHV WKH YDULRXV VWHSV RI D W\SLFDO WDFWLFDO

WKH

UHTXLUHG

PDQHXYHU

LQ

WKH

FRFNSLW

UHTXLUHV

WKH

XVH

RI

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 H[SHFW WKH XQH[SHFWHG 

SUHSDUHG SODQ RIWHQ DUH WKH SUREDEOH FDXVHV IRU D


ODFN RI DVVHUWLYHQHVV DVVHVVPHQW RI VLWXDWLRQ DQG
GHFLVLRQPDNLQJ

&50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

(UURU 0DQDJHPHQW

(IIHFWLYH IOLJKWFUHZ GHFLVLRQPDNLQJ UHTXLUHV D MRLQW

(UURUPDQDJHPHQW WUDLQLQJ DQG WHFKQLTXHV VKRXOG

ZLWK DQ DJUHHGXSRQ GHFLVLRQ DQG DFWLRQ

HYDOXDWLRQ RI SRVVLEOH RSWLRQV SULRU WR SURFHHGLQJ

EH FRQVLGHUHG DW FRPSDQ\ OHYHO DQG DW SHUVRQDO


7KH

OHYHO

HIIHFW

RI

SUHVVXUHV

HJ

GHOD\V

FRPSDQ\

SROLFLHV $7& UHTXHVWV HWF WKDW PD\ DIIHFW KRZ WKH


$SSURDFKDQG/DQGLQJ

%ULHILQJ

1RWHV

OLVW

FUHZ

DQG

IDFWRUV

LQ

RUGHU

WR

LGHQWLI\

RU

VXJJHVW

1HYHUWKHOHVV
UHDOLVWLF

&RPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG

PRVW

FULWLFDO

DVSHFW

LQ

IOLJKW

HOLPLQDWLQJ

REMHFWLYH

SUHYHQWLRQ

DQG

PDNHV

GHFLVLRQV

DOO

7KXV

VWUDWHJLHV

SUHVVXUHV

LV

FRPSDQ\

DFFLGHQW

&50

QRW

WHFKQLTXHV

DQG

SHUVRQDO OLQHVRIGHIHQVH VKRXOG EH XVHG WR FRSH

3HUVRQDO OLQHVRIGHIHQVHV

7KH

WKH

WKH

GHYHORSPHQW RI DVVRFLDWHG

FRQGXFWV

VKRXOG EH DFNQRZOHGJHG E\ WKH LQGXVWU\

GLVFXVV WKH UHOHYDQW LQIOXHQFH IDFWRUV LH HUURU

HIIHFWLYHO\ ZLWK VXFK SUHVVXUHV


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

5LVN 0DQDJHPHQW

WDFWLFDOGHFLVLRQPDNLQJ

PRGHOV

XVXDOO\

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

DYRLG WKHVH KD]DUGV RU WR PLQLPL]H WKHLU HIIHFWV

IROORZLQJ

PDQDJHPHQW RI SULRULWLHV
PDQDJHPHQW

VRPHWLPHV

LV

GHVFULEHG

DV

RSSRVLQJ

WR

%ULHILQJ

VKDUH
1RWH



5HFRJQL]LQJ WKH SUHYDLOLQJ FRQGLWLRQ

$VVHVVLQJ

VKRUW

WKH

WHUP

DQG

ORQJ

WHUP

$ VXUH LQFRQYHQLHQFH HJ DVVRFLDWHG ZLWK D

$ SUREDEOHRQO\ ULVN HJ ULVN DVVRFLDWHG ZLWK


DQ XQVWDELOL]HG DSSURDFK WR D ORQJ DQG GU\
UXQZD\ 

UHIHU

PRGHOV

FRQVHTXHQFHV RQ WKH IOLJKW

JRDURXQG RU D GLYHUVLRQ  DJDLQVW

SKDVHV

2SHUDWLRQV *ROGHQ 5XOHV

5LVN PDQDJHPHQW VKRXOG EH VHHQ DV D EDODQFHG

5LVN

WDFWLFDOGHFLVLRQPDNLQJ

SUDFWLFDO

DQG

VDIHW\RULHQWHG

PHWKRG

RI

(YDOXDWLQJ DYDLODEOH RSWLRQV DQG SURFHGXUHV

'HFLGLQJ WKH FRXUVH RI DFWLRQV

7DNLQJ DFWLRQV LQ DFFRUGDQFH ZLWK WKH GHILQHG


SURFHGXUHV DQG DSSOLFDEOH WDVNVKDULQJ

ULVN

PDQDJHPHQW LV HQWLUHO\ FRQWDLQHG LQ WKH FRQFHSW


DQG WHFKQLTXHV RI WDFWLFDOGHFLVLRQPDNLQJ UHIHU WR
%ULHILQJ

1RWH  2SHUDWLRQV *ROGHQ 5XOHV

'HFLVLRQ 0DNLQJ
623V

VRPHWLPHV

DUH

SHUFHLYHG

DV

OLPLWLQJ

5HVXPLQJ VWDQGDUG IO\LQJ GXWLHV

FRQVLGHUHG RU QR ORQJHU DYDLODEOH LV D UHFXUULQJ

WKH

SDWWHUQ LQ DSSURDFKDQGODQGLQJ DFFLGHQWV


7KH FRQFHSWV RI QH[WWDUJHW DQG DSSURDFKJDWH DUH

:LWKRXW GHQ\LQJ WKH FDSWDLQV HPHUJHQF\ DXWKRULW\


DUH

(YDOXDWLQJ DQG PRQLWRULQJ DFWLRQ UHVXOWV DQG

3RVWSRQLQJ D GHFLVLRQ XQWLO WKDW RSWLRQ LV QR PRUH

IOLJKWFUHZV MXGJHPHQW DQG GHFLVLRQ

623V

VDIHJXDUGV

DJDLQVW

ELDVHG

LQWHQGHG WR DFW DV EHQFKPDUNV IRU VXSSRUWLQJ D

GHFLVLRQ

WLPHO\ GHFLVLRQPDNLQJ SURFHVV

PDNLQJ

&50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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 

6SDWLDO GLVRULHQWDWLRQ LH SK\VLRORJLFDO LOOXVLRQV


&50 VNLOOV HIIHFWLYHO\

DQGRU YLVXDO LOOXVLRQV 

&RPSODFHQF\

ZKHQ

RSHUDWLQJ

DW

IDPLOLDU

5HOLHYH WKH HIIHFWV RI SUHVVXUHV LQWHUUXSWLRQV


DQG GLVWUDFWLRQV

DLUSRUW HJ KRPH EDVH  RU

2YHUFRQILGHQFH HJ KLJK WLPH RQ DLUFUDIW W\SH 

,QDGHTXDWH DQWLFLSDWLRQ LH LQDELOLW\ WR VWD\

3URYLGH EHQFKPDUNV IRU WLPHO\ GHFLVLRQPDNLQJ


DQG

DKHDG RI WKH DLUFUDIW 

3URYLGH

VDIHJXDUGV

PDQDJHPHQW

RU

WR

DQ

DEQRUPDO

WHFKQLFDO

DQG

HIIHFWLYH
WKH

HUURU

HIIHFWV

RI

HPHUJHQF\

FRQGLWLRQ E\ SUHFLVH SODQQLQJ DQG XVH RI DOO


DYDLODEOH

IRU

PLQLPL]LQJ

ZRUNLQJ HUURUV

,QDGHTXDWH SUHSDUDWLRQ WR UHVSRQG WR FKDQJLQJ


VLWXDWLRQV

WKXV

KXPDQ

$VVRFLDWHG %ULHILQJ 1RWHV

UHVRXUFHV

LH E\ H[SHFWLQJ WKH XQH[SHFWHG 


7KH

IROORZLQJ

%ULHILQJ

1RWHV

SURYLGH

H[SDQGHG

&UHZPHPEHUV SHUVRQDO IDFWRUV DQGRU

LQIRUPDWLRQ WR FRPSOHPHQW WKH DERYH GLVFXVVLRQ

$EVHQFH RI VSHFLILF WUDLQLQJ RI LQVWUXFWRUV DQG

  2SHUDWLQJ 3KLORVRSK\  623V

 2SWLPXP XVH RI $XWRPDWLRQ

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

&50 SUDFWLFHV

 8VH RI 1RUPDO &KHFNOLVWV

&RPSDQ\ FXOWXUH DQG SROLFLHV

  $SSURDFK DQG *RDURXQG %ULHILQJV

%HOLHI

  +XPDQ )DFWRUV LQ $SSURDFKDQG

FKHFN DLUPHQ WR HYDOXDWH WKH &50 SHUIRUPDQFH


RI WUDLQHHV DQG OLQH SLORWV

)DFWRUV $IIHFWLQJ &50 3UDFWLFH


7KH IROORZLQJ RUJDQL]DWLRQDO RU SHUVRQDO IDFWRUV PD\
DGYHUVHO\

DIIHFW

WKDW

DOWKRXJK

WKH

HIIHFWLYH

DFWLRQV

WKH\

RU

LPSOHPHQWDWLRQ

GHFLVLRQV

GHYLDWHV

IURP

DUH

WKH

RI

FRUUHFW

DSSOLFDEOH

/DQGLQJ $FFLGHQWV

VWDQGDUGV

(IIHFW

RI

IDWLJXH

FRXQWHUPHDVXUHV

WR

DQG
UHVWRUH

DEVHQFH

RI

WKH

RI

OHYHO

YLJLODQFH DQG DOHUWQHVV DQGRU

DQG

&50

LVVXHV

LQ

  (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

  ,QWUDFRFNSLW &RPPXQLFDWLRQV


0DQDJLQJ ,QWHUUXSWLRQV DQG
'LVWUDFWLRQV LQ WKH &RFNSLW

5HOXFWDQFH WR DFFHSW WKH LQIOXHQFH RI KXPDQ


IDFWRUV

DSSURDFKDQG

ODQGLQJ LQFLGHQWV RU DFFLGHQWV

&50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV $SSHQGL[    DQG 

,&$2 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV


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

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

RSHUDWLRQV

3$16236

'RF

 

9ROXPH , )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW


1R  DSSOLFDEOH 1RY 

,&$2

$FFLGHQW

+XPDQ

3UHYHQWLRQ

0DQXDO

'RF

 

,&$2

)DFWRUV

7UDLQLQJ

0DQXDO

'RF  

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


)DFWRUV LQ $LU 7UDIILF &RQWURO &LUFXODU  

)$5    RU  


&50 7UDLQLQJ IRU SLORWV FDELQ FUHZ DQG DLUFUDIW
GLVSDWFKHUV

)$$

$&



$HURQDXWLFDO

'HFLVLRQ

0DNLQJ

-$5236





RU



&50

7UDLQLQJ

&50 ,VVXHV LQ $SSURDFK DQG /DQGLQJ $FFLGHQWV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

(IIHFWLYH3LORW&RQWUROOHU&RPPXQLFDWLRQV

,QWURGXFWLRQ

5HPDUN

8QWLO FRQWUROOHU  SLORW GDWD OLQN FRPPXQLFDWLRQ


&3'/& FRPHV LQWR ZLGHVSUHDG XVH DLU WUDIILF
FRQWURO $7& ZLOO GHSHQG XSRQ YRLFH
FRPPXQLFDWLRQV WKDW DUH DIIHFWHG E\ YDULRXV IDFWRUV
&RPPXQLFDWLRQV EHWZHHQ FRQWUROOHUV DQG SLORWV FDQ
EH LPSURYHG E\ WKH PXWXDO XQGHUVWDQGLQJ RI HDFK
RWKHUV RSHUDWLQJ HQYLURQPHQW
7KLV $SSURDFKDQG/DQGLQJ %ULHILQJ 1RWH SURYLGHV
DQ RYHUYLHZ RI YDULRXV IDFWRUV WKDW PD\ DIIHFW SLORW 
FRQWUROOHU FRPPXQLFDWLRQV
7KLV %ULHILQJ 1RWH PD\ EH XVHG WR GHYHORS D
FRPSDQ\ DZDUHQHVV SURJUDP IRU HQKDQFLQJ IOLJKW
SLORW  FRQWUROOHU FRPPXQLFDWLRQV

$OWKRXJK SLORW  FRQWUROOHU FRPPXQLFDWLRQV DUH QRW


OLPLWHG WR WKH LVVXDQFH DQG DFNQRZOHGJHPHQW RI
FOHDUDQFHV WKLV %ULHILQJ 1RWH UHIHUV SULPDULO\ WR
FOHDUDQFHV EHFDXVH WKLV SURYLGHV D FRQYHQLHQW
H[DPSOH WR LOOXVWUDWH PRVW GLVFXVVLRQ WRSLFV
3LORW  &RQWUROOHU 5HVSRQVLELOLWLHV

7KH UHVSRQVLELOLWLHV RI WKH SLORW DQG FRQWUROOHU


LQWHQWLRQDOO\ RYHUODS LQ PDQ\ DUHDV WR SURYLGH
UHGXQGDQF\
7KLV VKDUHG UHVSRQVLELOLW\ LV LQWHQGHG WR
FRPSHQVDWH IRU IDLOXUHV WKDW PLJKW DIIHFW VDIHW\
7KH 3LORW  &RQWUROOHU &RPPXQLFDWLRQ /RRS

6WDWLVWLFDO 'DWD

7KH SLORW  FRQWUROOHU FRPPXQLFDWLRQ ORRS VXSSRUWV


WKH VDIHW\ DQG UHGXQGDQF\ RI SLORW  FRQWUROOHU
FRPPXQLFDWLRQV )LJXUH  

,QFRUUHFW RU LQFRPSOHWH SLORW  FRQWUROOHU


FRPPXQLFDWLRQV LV D FDXVDO RU FLUFXPVWDQWLDO IDFWRU
LQ PDQ\ DSSURDFKDQGODQGLQJ HYHQWV
,QFRUUHFW RU LQDGHTXDWH
x $7& LQVWUXFWLRQV VXFK DV UDGDU YHFWRUV 
x :HDWKHU RU WUDIILF LQIRUPDWLRQ DQGRU
x $GYLFHVHUYLFH LQ FDVH RI HPHUJHQF\
DUH FDXVDO IDFWRUV LQ PRUH WKDQ   RI DSSURDFK
DQGODQGLQJ DFFLGHQWV

7KH SLORW  FRQWUROOHU FRPPXQLFDWLRQ ORRS FRQVWLWXWHV


D FRQILUPDWLRQ  FRUUHFWLRQ SURFHVV WKDW HQVXUHV WKH
LQWHJULW\ RI FRPPXQLFDWLRQV
:KHQHYHU DGYHUVH IDFWRUV DUH OLNHO\ WR DIIHFW
FRPPXQLFDWLRQV VWULFW DGKHUHQFH WR WKLV FORVHG
ORRS FRQVWLWXWHV D OLQHRIGHIHQVH DJDLQVW
FRPPXQLFDWLRQ HUURUV

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$7& &OHDUDQFH
$FNQRZOHGJH RU
&RUUHFW

7UDQVPLW

/LVWHQ
3LORWV
5HDGEDFN

&RQWUROOHUV
+HDUEDFN
/LVWHQ

7UDQVPLW

)LJXUH 
7KH 3LORW  &RQWUROOHU &RPPXQLFDWLRQ /RRS

$FKLHYLQJ

(IIHFWLYH

+XPDQ IDFWRUV
FRPPXQLFDWLRQ

&RPPXQLFDWLRQV

2EVWDFOHV DQG /HVVRQV /HDUQHG

(IIHFWLYH

3LORWV DQG FRQWUROOHUV DUH LQYROYHG HTXDOO\ LQ WKH DLU

PHQWDO

WUDIILF PDQDJHPHQW V\VWHP

IDFWRUV

WKDW

VKRXOG

QRW

EH

FRQVLGHUHG

DFKLHYHG

PHVVDJH

WKH

ZKHQ

RXU

LQIRUPDWLRQ

DFFRPPRGDWHV

WKH

7KLV PHQWDO SURFHVV FDQ EH VXPPDUL]HG DV IROORZV

0DQ\ IDFWRUV DUH FORVHO\ LQWHUUHODWHG DQG PRUH WKDQ


RQH FDXVH XVXDOO\ LV LQYROYHG LQ D EUHDNGRZQ RI WKH

FRPPXQLFDWLRQ ORRS

LQYROYHG

+RZ GR ZH SHUFHLYH WKH PHVVDJH "


+RZ

GR

ZH

UHFRQVWUXFW

WKH

LQIRUPDWLRQ

FRQWDLQHG LQ WKH PHVVDJH "

7KH IROORZLQJ SURYLGHV DQ RYHUYLHZ DQG GLVFXVVLRQ


IDFWRUV

LV

LQWHUSUHWLQJ

HIIHFWLYH

LQ

LVRODWLRQ

RI

LQ

IRU

LQ

PHVVDJH UHFHLYHG

$FKLHYLQJ HIIHFWLYH UDGLR FRPPXQLFDWLRQV LQYROYHV


PDQ\

FRPPXQLFDWLRQ

SURFHVV

FRQWDLQHG

DVSHFWV

LQ

HIIHFWLYH

SLORW

+RZ GR ZH OLQN WKLV LQIRUPDWLRQ WR DQ REMHFWLYH


RU WR DQ H[SHFWDWLRQ " DQG

FRQWUROOHU

FRPPXQLFDWLRQV

:KDW ELDV RU HUURU LV LQWURGXFHG LQ WKLV SURFHVV"

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

&UHZ

UHVRXUFH

KLJKOLJKW

WKH

PDQDJHPHQW
LPSRUWDQFH

H[SHFWDWLRQV

LQ

H[SHFWDWLRQV

PD\

QHJDWLYH

ELDV

WKLV

&50

RI

WKH

SURFHVV

LQWURGXFH

LQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

WKH

HLWKHU

UHVHDUFKHV

FRQWH[W

7KH VWUXFWXUH DQG FRQVWUXFWLRQ RI WKH LQLWLDO DQG

DQG

VXEVHTXHQW PHVVDJH V VKRXOG VXSSRUW WKLV FRQWH[W

1HYHUWKHOHVV
D

SRVLWLYH

HIIHFWLYHQHVV

RI

E\

RU

WKH

FRPPXQLFDWLRQ

x
:RUNORDG

IDWLJXH

QRQDGKHUHQFH

WR

WKH

VWHULOH

SUHVVXUH DUH DPRQJ WKH IDFWRUV WKDW PD\ DIIHFW


SLORW

FRQWUROOHU

FRPPXQLFDWLRQV

WKH

FKURQRORJLFDO

RUGHU

RI

WKH

*URXSLQJ LQVWUXFWLRQV DQG QXPEHUV UHODWHG WR


HDFK DFWLRQ DQG

FRFNSLW UXOH GLVWUDFWLRQV LQWHUUXSWLRQV FRQIOLFWV DQG


DGYHUVHO\

)ROORZLQJ

VHTXHQFH RI DFWLRQV

/LPLWLQJ

WKH

QXPEHU

RI

LQVWUXFWLRQV

LQ

WKH

WUDQVPLVVLRQ

DQG

UHVXOW LQ
7KH LQWRQDWLRQ WKH VSHHG RI WUDQVPLVVLRQ DQG WKH

,QFRPSOHWH FRPPXQLFDWLRQV

2PLVVLRQ RI FDOO VLJQ RU XVH RI DQ LQFRUUHFW FDOO

SODFHPHQW DQG GXUDWLRQ RI SDXVHV PD\ SRVLWLYHO\ RU


DGYHUVHO\

DIIHFW

WKH

FRUUHFW

XQGHUVWDQGLQJ

RI

FRPPXQLFDWLRQ

VLJQ

8VH RI QRQVWDQGDUG SKUDVHRORJ\

)DLOXUH WR OLVWHQ RU UHVSRQG DQG

)DLOXUH WR HIIHFWLYHO\ LPSOHPHQW WKH FRQILUPDWLRQ

&50 VWXGLHV VKRZ WKDW ODQJXDJH GLIIHUHQFHV DUH D

 FRUUHFWLRQ ORRS

PRUH IXQGDPHQWDO REVWDFOH WR VDIHW\ LQ WKH FRFNSLW

0DVWHULQJ WKH /DQJXDJH


WKDQ FXOWXUDO GLIIHUHQFHV

/DQJXDJH DQG &RPPXQLFDWLRQ

,Q

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

UHVSRQVH

WR

VHULHV

RI

DFFLGHQWV

LQYROYLQJ

ODQJXDJH VNLOOV DV D FDXVDO IDFWRU DQ HIIRUW KDV

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
UHJLRQDO DFFHQWV RU GLDOHFWV

7KH ODQJXDJH RI SLORW  FRQWUROOHU FRPPXQLFDWLRQV LV


LQWHQGHG WR RYHUFRPH WKLV EDVLF VKRUWFRPLQJ

/DQJXDJH
7KH

ILUVW

SULRULW\

RI

DQ\

FRPPXQLFDWLRQ

LV

GLIIHUHQFHV

JHQHUDWH

VLJQLILFDQW

FRPPXQLFDWLRQ GLIILFXOWLHV ZRUOGZLGH

WR

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

3XUSRVH
VWDWHPHQW

ODQJXDJH IRU FRPPXQLFDWLRQ ZLWK GRPHVWLF IOLJKWV




FOHDUDQFH
RU

SURSRVDO

LQVWUXFWLRQ
TXHVWLRQ

SUHYHQW SLORWV IURP DFKLHYLQJ WKH GHVLUHG OHYHO RI

FRQGLWLRQDO
RU

VLWXDWLRQDO DZDUHQHVV EHFDXVH RI ORVV RI SDUW\

UHTXHVW

OLQH FRPPXQLFDWLRQV 

FRQILUPDWLRQ

x
x

:KHQ  LPPHGLDWHO\ DQWLFLSDWH  H[SHFW

8VH RI 1RQVWDQGDUG 3KUDVHRORJ\

:KDW

8VH RI QRQVWDQGDUG SKUDVHRORJ\ LV D PDMRU REVWDFOH

DQG

KRZ

 DOWLWXGH LH FOLPE GHVFHQG

WR YRLFH FRPPXQLFDWLRQV

PDLQWDLQ  KHDGLQJ LH OHIW ULJKW  DLUVSHHG


DQG

6WDQGDUG SKUDVHRORJ\ LV LQWHQGHG WR EH HDVLO\ DQG

:KHUH  LH EHIRUH RU DW >@ ZD\SRLQW 

TXLFNO\ UHFRJQL]HG

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

3LORWV DQG FRQWUROOHUV H[SHFW HDFK RWKHU WR XVH

/DFN

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 SLORWV DQG WKH FRQWUROOHUV VLWXDWLRQDO DZDUHQHVV

XQGHUVWDQGLQJ DPRQJ VSHDNHUV

x
x

2I GLIIHUHQW QDWLYH ODQJXDJHV RU

ZRUGV

GLIIHUHQWO\

5HDGEDFN

HJ

XVH

RI

5RJHU

IRU

3LORW PD\ XVH 5RJHU WR DFNQRZOHGJH D PHVVDJH


FRQWDLQLQJ

QXPEHUV

LQVWHDG

RI

IRUPDO

UHDGEDFN  WKXV SUHYHQWLQJ HIIHFWLYH KHDUEDFN

2I WKH VDPH QDWLYH ODQJXDJH EXW ZKR XVH RU


XQGHUVWDQG

RI

DQG FRUUHFWLRQ E\ WKH FRQWUROOHU RU

UHJLRQDO

DFFHQWV RU GLDOHFWV 

&RQWUROOHU PD\ XVH 5RJHU WR DFNQRZOHGJH D


PHVVDJH UHTXLULQJ D VSHFLILF DQVZHU HJ D

1RQVWDQGDUG SKUDVHRORJ\ RU WKH RPLVVLRQ RI NH\

SRVLWLYH

ZRUGV PD\ FKDQJH FRPSOHWHO\ WKH PHDQLQJ RI WKH

DFNQRZOHGJLQJ

LQWHQGHG PHVVDJH UHVXOWLQJ LQ SRWHQWLDO FRQIOLFWV

DOWLWXGH RU VSHHG UHVWULFWLRQ FDQQRW EH PHW 

FRQILUPDWLRQ
D

RU

FRUUHFWLRQ

VXFK

DV

VWDWHPHQW

WKDW

DQ

SLORWV

)RU H[DPSOH DQ\ PHVVDJH FRQWDLQLQJ D QXPEHU


VKRXOG LQGLFDWH ZKHWKHU WKH QXPEHU UHIHUV WR DQ

)DLOXUH

DOWLWXGH D KHDGLQJ RU DQ DLUVSHHG ,QFOXGLQJ NH\

KHDUEDFN HUURUV

ZRUGV

SUHYHQWV

DQ

HUURQHRXV

LQWHUSUHWDWLRQ

RI

&RUUHFW

0RVW

SLORWV

SHUFHLYH

DFNQRZOHGJHPHQW
DQG

FRQWUROOHUV

PLJKW

XVH

QRQVWDQGDUG

PLQLPL]HV

WKH

SRWHQWLDO

ODFN

XVXDOO\

RI

LV

UHTXLULQJ
%XLOGLQJ 6LWXDWLRQDO $ZDUHQHVV

DEVHQFH

FRUUHFWLRQ

RI

DQ

IROORZLQJ

WKH UHDGEDFN
7KH

FRPPXQLFDWLRQV

WKH

RU

IRU

PLVXQGHUVWDQGLQJ

5DGLR

5HDGEDFN

FOHDUDQFH UHDGEDFN DV DQ LPSOLFLW FRQILUPDWLRQ RI

SKUDVHRORJ\ ZLWK JRRG LQWHQWLRQV KRZHYHU VWDQGDUG


SKUDVHRORJ\

(UURQHRXV

DQG

DOORZV DQ HIIHFWLYH UHDGEDFN  KHDUEDFN


3LORWV

DQ

DFNQRZOHGJHPHQW

WKH

WKH

UHVXOW

RI

FRQWUROOHU

E\

WKH

IUHTXHQF\

WR

LVVXH

FRQWUROOHU

FRQJHVWLRQ

FOHDUDQFHV

DQG

LQVWUXFWLRQV WR VHYHUDO DLUFUDIW

LQFOXGLQJ

SDUW\OLQH

8QFRUUHFWHG

HUURQHRXV

UHDGEDFN

NQRZQ

DV

FRPPXQLFDWLRQV FRQWULEXWH WR EXLOG WKH SLORWV DQG

KHDUEDFN HUURUV PD\ FDXVH GHYLDWLRQV IURP WKH

WKH FRQWUROOHUV VLWXDWLRQDO DZDUHQHVV

DVVLJQHG DOWLWXGH RU QRQFRPSOLDQFH ZLWK

DOWLWXGH

UHVWULFWLRQV RU ZLWK UDGDU YHFWRUV


)OLJKW

FUHZ

DQG

PLVXQGHUVWDQGLQJV

FRQWUROOHU

E\

SURYLGLQJ

PD\
HDFK

SUHYHQW
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

XVXDOO\ DUH WKH UHVXOW RI KHDUEDFN HUURUV

WKH

FRUUHFW IORZ RI FRPPXQLFDWLRQV GXULQJ DSSURDFK


DQG ODQGLQJ SKDVHV DW KLJKGHQVLW\ DLUSRUWV WKLV
UHTXLUHV

HQKDQFHG

YLJLODQFH

E\

SLORWV

DQG

E\

3HUFHLYLQJ

FRQWUROOHUV

:KDW

:DV

([SHFWHG

RU

:DQWHG

QRW ZKDW ZDV DFWXDOO\ VDLG


7KH

2PLVVLRQ RI &DOO 6LJQ

ELDV

RI

H[SHFWDWLRQ

XQGHUVWDQGLQJ

RI

FDQ

DIIHFW

FRPPXQLFDWLRQV

WKH

E\

FRUUHFW

SLORWV

DQG

FRQWUROOHUV
2PLWWLQJ WKH FDOO VLJQ RU XVLQJ DQ LQFRUUHFW FDOO VLJQ
7KLV

MHRSDUGL]HV DQ HIIHFWLYH UHDGEDFN  KHDUEDFN

LQYROYHV

SHUFHLYLQJ

ZKDW

ZDV

ZDQWHG DQG QRW ZKDW ZDV DFWXDOO\ VDLG

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

H[SHFWHG

RU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7DNLQJ

7KH ELDV RI H[SHFWDWLRQ FDQ OHDG WR

7UDQVSRVLQJ

WKH

QXPEHUV

FRQWDLQHG

LQ

FOHDUDQFH HJ DQ DOWLWXGH RU )/ WR ZKDW ZDV

&OHDUDQFH

RU

,QVWUXFWLRQ

,VVXHG

WR

7KLV XVXDOO\ RFFXUV ZKHQ WZR DLUFUDIW ZLWK VLPLODU

H[SHFWHG EDVHG RQ H[SHULHQFH RU URXWLQH

$QRWKHU $LUFUDIW

VRXQGLQJ FDOO VLJQV DUH RQ WKH VDPH IUHTXHQF\ DQG

6KLIWLQJ D FOHDUDQFH RU LQVWUXFWLRQ IURP RQH

DUH OLNHO\ WR UHFHLYH VLPLODU LQVWUXFWLRQV RU LI WKH FDOO

SDUDPHWHU

VLJQ LV EORFNHG E\ DQRWKHU WUDQVPLVVLRQ

WR

DQRWKHU

HJ

SHUFHLYLQJ

FOHDUDQFH WR PDLQWDLQ D GHJUHH KHDGLQJ DV


D FOHDUDQFH WR FOLPE  GHVFHQG DQG PDLQWDLQ

:KHQ

)/  

VRXQGLQJ FDOO VLJQV RPLW WKH FDOO VLJQ RQ UHDGEDFN

SLORWV

RI

GLIIHUHQW

DLUFUDIW

ZLWK

VLPLODU

RU ZKHQ VLPXOWDQHRXV UHDGEDFN DUH PDGH E\ ERWK


SLORWV WKH HUURU PD\ JR XQQRWLFHG E\ WKH SLORWV DQG
WKH FRQWUROOHU

)DLOXUH WR 6HHN &RQILUPDWLRQ ZKHQ D PHVVDJH


LV QRW XQGHUVWRRG

)LOWHULQJ &RPPXQLFDWLRQV

0LVXQGHUVWDQGLQJV PD\ LQFOXGH KDOIKHDUG ZRUGV RU


JXHVVHGDW QXPEHUV

%HFDXVH RI RWKHU IOLJKW GHFN GXWLHV SLORWV WHQG WR


7KH

SRWHQWLDO

IRU

PLVXQGHUVWDQGLQJ

ILOWHU

QXPEHUV

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
FRPPXQLFDWLRQV HJ QRW KHDULQJ RU UHVSRQGLQJ WR

)DLOXUH WR 5HTXHVW &ODULILFDWLRQ ZKHQ LQ GRXEW

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 

$FFHSW DQ LQDGHTXDWH LQVWUXFWLRQ RYHUUHOLDQFH

VHOHFWLRQ SURFHVV VKRXOG EH DGDSWHG DFFRUGLQJ WR

RQ $7&  RU

'HILQH

E\

WKH IOLJKW SKDVH IRU PRUH HIIHFWLYH OLVWHQLQJ


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 SLORWV 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

WR PHHW D UHVWULFWLRQ 

LQDGHTXDWH

LQVWUXFWLRQ PD\ FDXVH D FUHZ WR DFFHSW DQ DOWLWXGH


FOHDUDQFH EHORZ WKH VHFWRU 06$ RU D KHDGLQJ WKDW

%RWK

SODFHV WKH DLUFUDIW QHDU REVWUXFWLRQV

DFFRPPRGDWH WKLV GHYLDWLRQ WKHUHIRUH $7& VKRXOG

WKH

SLORW

DQG

WKH

FRQWUROOHU

QHHG

WLPH

WR

EH QRWLILHG DV HDUO\ DV SRVVLEOH WR REWDLQ D WLPHO\


DFNQRZOHGJHPHQW

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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
WULJJHU DQ DSSURSULDWH UHVSRQVH

$Q H[FHVVLYH SDXVH LQ D PHVVDJH LH KROGLQJ WKH


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

$7&

LPSRUWDQW QHHGV DUH

UHVXOWV

LQ

RQH

RI

WKH

WZR

RU

ERWK

HPHUJHQF\

VLWXDWLRQ

WKH

IOLJKW

FUHZV

PRVW

WUDQVPLVVLRQV EHLQJ EORFNHG DQG XQKHDUG E\ WKH


RWKHU VWDWLRQV RU EHLQJ KHDUG DV D EX]]LQJ VRXQG RU

7LPH

$LUVSDFH DQG

4XLHW

DV D VTXHDO 
7KH DEVHQFH RI UHDGEDFN IURP WKH SLORW RU WKH
DEVHQFH RI KHDUEDFN DFNQRZOHGJHPHQW IURP WKH
FRQWUROOHU VKRXOG EH FRQVLGHUHG DV DQ LQGLFDWLRQ RI
D EORFNHG WUDQVPLVVLRQ DQG WKXV SURPSW D UHTXHVW
7KH

WR UHSHDW RU FRQILUP WKH LQIRUPDWLRQ

FRQWUROOHUV

VLWXDWLRQ

DOWLWXGH GHYLDWLRQV PLVVHG WXUQRIIV DQG WDNHRIIV DQG

ODQGLQJV ZLWKRXW FOHDUDQFHV

$7&

RQ

IROORZLQJ

HYHQWV

RU

HQFRXQWHUV

VKRXOG

EH

IOLJKW

FUHZV

IXUWKHU

LQWHQWLRQV

DV

DSSOLFDEOH 

7&$6 UHVROXWLRQ DGYLVRU\ 5$ HYHQWV

6HYHUH WXUEXOHQFH HQFRXQWHU

9ROFDQLF DVK HQFRXQWHU

:LQGVKHDU RU PLFUREXUVW HQFRXQWHU DQG

*3:67$:6 WHUUDLQ DYRLGDQFH PDQHXYHU

HPHUJHQF\
WKH

$66,67

(QVXUH WKDW WKH UHSRUWHG HPHUJHQF\ LV ZHOO

(VWDEOLVK DQG PDLQWDLQ VHSDUDWLRQ ZLWK RWKHU


WUDIILF DQGRU WHUUDLQ

QDWXUH RI WKH HYHQW RU HQFRXQWHU WKH DFWLRQV WDNHQ


WKH

WKH

DIWHU

6HSDUDWH 

UHSRUWHG DV VRRQ DV SUDFWLFDO WR $7& VWDWLQJ WKH


DQG

WR

XQGHUVWRRG DQG DFNQRZOHGJHG

6SHFLILF

(YHQWV

7KH

SDWWHUQHG

$FNQRZOHGJH 


ZLWK

UHVSRQVH
EH

PHPRU\ DLG SURSRVHG EHORZ

%ORFNHG WUDQVPLVVLRQV DUH UHVSRQVLEOH IRU PDQ\

&RPPXQLFDWLQJ

FRXOG

6LOHQFH 

,PSRVH VLOHQFH RQ \RXU FRQWURO IUHTXHQF\ LI


QHFHVVDU\ DQG

'R QRW GHOD\ RU GLVWXUE XUJHQW FRFNSLW DFWLRQ


E\ XQQHFHVVDU\ WUDQVPLVVLRQV

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,QIRUP 

ZKHQ LQ GRXEW
,QIRUP \RXU VXSHUYLVRU DQG RWKHU VHFWRUV

XQLWV DQG DLUSRUWV DV DSSURSULDWH

3URYLGH PD[LPXP VXSSRUW WR WKH IOLJKW FUHZ

3UHYHQWLQJ VLPXOWDQHRXV WUDQVPLVVLRQV

$GDSWLQJ OLVWHQLQJ RI SDUW\OLQH FRPPXQLFDWLRQV

$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

FRQWUROOHU

FRPPXQLFDWLRQV

VKRXOG

LQYROYH

3ULPDU\ ODQJXDJH IRU XVH ZLWK $7& DQG LQ WKH


FRFNSLW DQG

$ FRPSDQ\ DZDUHQHVV DQG WUDLQLQJ SURJUDP RQ SLORW




DV D IXQFWLRQ RI WKH IOLJKW SKDVH DQG

7LPH 

5HDGLQHVV WR TXHVWLRQ DQ LQFRUUHFW FOHDUDQFH RU


DQ LQDGHTXDWH LQVWUXFWLRQ

6XSSRUW 


x

$OHUWQHVV WR UHTXHVW FODULILFDWLRQ RU FRQILUPDWLRQ

ERWK

8VH RI KHDGVHWV EHORZ   IW

$7& SHUVRQQHO DQG SLORWV HJ GXULQJ PHHWLQJV DQG


VLPXODWRU

VHVVLRQV

WR

SURPRWH

PXWXDO

$VVRFLDWHG %ULHILQJ 1RWHV

XQGHUVWDQGLQJ RI HDFK RWKHUV ZRUNLQJ HQYLURQPHQW


LQFOXGLQJ

7KH IROORZLQJ %ULHILQJ 1RWHV PD\ EH UHYLHZHG WR

0RGHUQ IOLJKW GHFNV HJ )06 UHSURJUDPPLQJ

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 

2SHUDWLRQDO

UHTXLUHPHQWV

GHFHOHUDWLRQ

HJ

FKDUDFWHULVWLFV

DLUFUDIW

$FFLGHQWV

SHUIRUPDQFH

OLPLWDWLRQV  DQG

3URFHGXUHV

HJ

623V

  +) ,VVXHV LQ $SSURDFKDQG/DQGLQJ

DQG

  &50 ,VVXHV LQ $SSURDFKDQG /DQGLQJ

SUDFWLFHV

$FFLGHQWV

HJ &50 
6SHFLDO

HPSKDVLV

VKRXOG

EH

SODFHG

RQ

SLORW

  ,QWUDFRFNSLW &RPPXQLFDWLRQV

FRQWUROOHU FRPPXQLFDWLRQV DQG WDVN PDQDJHPHQW

0DQDJLQJ ,QWHUUXSWLRQV DQG

GXULQJ HPHUJHQF\ VLWXDWLRQV

'LVWUDFWLRQV

6XPPDU\ RI .H\ 3RLQWV


$OWKRXJK

DFKLHYLQJ

HIIHFWLYH

SLORW

  )O\LQJ 6WDELOL]HG $SSURDFKHV

5HJXODWRU\ 5HIHUHQFHV

FRQWUROOHU

FRPPXQLFDWLRQV UHTXLUHV D JOREDO DSSURDFK WKH


LPSRUWDQFH RI WKH IROORZLQJ NH\ SRLQWV VKRXOG EH

5HIHUHQFH

HPSKDVL]HG

FRPPXQLFDWLRQV FDQ EH IRXQG LQ PDQ\ LQWHUQDWLRQDO

8QGHUVWDQGLQJ
UHVSHFWLYH

RI

SLORWV

ZRUNLQJ

DQG

DQG

'LVFLSOLQHG XVH RI VWDQGDUG SKUDVHRORJ\

6WULFW

DGKHUHQFH

FRPPXQLFDWLRQ

WR
ORRS

WKH
LH

SLORW

FRQWUROOHU

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV $SSHQGL[  

FRQWUROOHU

FRQILUPDWLRQ

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

FRQVWUDLQWV

SLORW

DQG QDWLRQDO SXEOLFDWLRQV VXFK DV

FRQWUROOHUV

HQYLURQPHQWV

UHJDUGLQJ

,&$2 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV

5XOHV

RI

WKH

$LU

DQG

3$165$& 'RF  

FRUUHFWLRQ SURFHVV 

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$LU

7UDIILF

6HUYLFHV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

RSHUDWLRQV

3$16236

'RF

 

9ROXPH , )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW


1R  DSSOLFDEOH 1RY 

,&$2  $QQH[  9ROXPH ,,  &RPPXQLFDWLRQ


SURFHGXUHV &KDSWHU   $HURQDXWLFDO 0RELOH
6HUYLFH

x
x

,&$2  0DQXDO RI 5DGLRWHOHSKRQ\ 'RF  


,&$2

+XPDQ

)DFWRUV

7UDLQLQJ

0DQXDO

'RF  

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


)DFWRUV LQ $LU 7UDIILF &RQWURO &LUFXODU  

7KH

UHVSHFWLYH

QDWLRQDO

$HURQDXWLFDO

,QIRUPDWLRQ 3XEOLFDWLRQV $,3V 

1DWLRQDO SXEOLFDWLRQV VXFK DV 

WKH

86

)$$
$,0

)HGHUDO

$YLDWLRQ

$HURQDXWLFDO

2IILFLDO

$GPLQLVWUDWLRQ

,QIRUPDWLRQ

JXLGH

WR

0DQXDO

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  

)$5    RU  


&50 7UDLQLQJ IRU SLORWV FDELQ FUHZ DQG DLUFUDIW
GLVSDWFKHUV

x
x

)$$ $&  $HURQDXWLFDO 'HFLVLRQ 0DNLQJ


-$5236





RU



&50

7UDLQLQJ

(IIHFWLYH 3LORW  &RQWUROOHU &RPPXQLFDWLRQV

3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

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

6WDWLVWLFDO 'DWD

,QWURGXFWLRQ

7KH IROORZLQJ FDXVDO IDFWRUV IUHTXHQWO\ REVHUYHG LQ


DSSURDFKDQGODQGLQJ DFFLGHQWV RIWHQ DUH WKH UHVXOW
RI LQWHUUXSWLRQV RU GLVWUDFWLRQV LQ WKH FRFNSLW

7KH RPLVVLRQ RI DQ DFWLRQ RU DQ LQDSSURSULDWH DFWLRQ


LV WKH PRVW IUHTXHQW FDXVDO IDFWRUV LQ DSSURDFK DQG
ODQGLQJ DFFLGHQWV
,QWHUUXSWLRQV HJ GXH WR $7& FRPPXQLFDWLRQV
DQG

GLVWUDFWLRQV

HJ

GXH

RQH

FDELQ

 RI
(YHQWV

)DFWRU

DWWHQGDQW

HQWHULQJ WKH FRFNSLW RFFXU IUHTXHQWO\ VRPH FDQQRW


EH DYRLGHG VRPH FDQ EH PLQLPL]HG RU HOLPLQDWHG
7KH IROORZLQJ DVSHFWV VKRXOG EH FRQVLGHUHG WR
DVVHVV FRPSDQ\ H[SRVXUH DQG SHUVRQDO H[SRVXUH
DQG WR GHYHORS SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
GHIHQVH WR OHVVHQ WKH HIIHFWV RI LQWHUUXSWLRQV DQG
GLVWUDFWLRQV LQ WKH FRFNSLW
x 5HFRJQL]H WKH SRWHQWLDO VRXUFHV RI LQWHUUXSWLRQV
DQG GLVWUDFWLRQV
x 8QGHUVWDQG WKHLU HIIHFW RQ WKH IORZ RI FRFNSLW
GXWLHV
x 5HGXFH LQWHUUXSWLRQV DQG GLVWUDFWLRQV HJ E\
DGRSWLQJ WKH 6WHULOH &RFNSLW 5XOH 
x 'HYHORS SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
GHIHQVH WR PLQLPL]H WKH H[SRVXUH WR
LQWHUUXSWLRQV DQG GLVWUDFWLRQV DQG
x 'HYHORS WHFKQLTXHV IRU OHVVHQ WKH HIIHFWV RI
LQWHUUXSWLRQV DQG GLVWUDFWLRQV

2PLVVLRQ RI DFWLRQ
LQDSSURSULDWH DFWLRQ

RU

 

,QDGHTXDWH FUHZ FRRUGLQDWLRQ


FURVVFKHFN DQG EDFNXS

 

,QVXIILFLHQW KRUL]RQWDO RU YHUWLFDO


VLWXDWLRQDO DZDUHQHVV

 

,QDGHTXDWH RU LQVXIILFLHQW
XQGHUVWDQGLQJ RI SUHYDLOLQJ
FRQGLWLRQV

 

6ORZ RU GHOD\HG DFWLRQ

 

,QFRUUHFW RU LQFRPSOHWH SLORW 


FRQWUROOHU FRPPXQLFDWLRQV

 

7DEOH 
(IIHFWV RI 'LVWUDFWLRQV DQG ,QWHUUXSWLRQV
LQ $SSURDFKDQG/DQGLQJ $FFLGHQWV

,QWUD&RFNSLW &RPPXQLFDWLRQV 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7\SHV RI ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV

%HLQJ IDFHG ZLWK FRQFXUUHQW WDVN GHPDQGV WKH

,QWHUUXSWLRQV DQG GLVWUDFWLRQV LQ WKH FRFNSLW PD\ EH

WKH GHWULPHQW RI DQRWKHU

QDWXUDO KXPDQ WHQGHQF\ LV WR SHUIRUP RQH WDVN WR

VXEWOH RU EH PRPHQWDU\ EXW WKH\ FDQ EH GLVUXSWLYH


8QOHVV

WR WKH IOLJKW FUHZ

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

1RW PRQLWRULQJ WKH IOLJKW SDWK SRVVLEO\ UHVXOWLQJ


LQ DQ DOWLWXGH RU FRXUVH GHYLDWLRQ RU D FRQWUROOHG

UHFHLYLQJ WKH ILQDO ZHLJKWV ZKLOH WD[LLQJ RU

D IOLJKW DWWHQGDQW HQWHULQJ WKH FRFNSLW

LQFXUVLRQ 

UHDGLQJ WKH DSSURDFK FKDUW RU

WKH

UHVXOWLQJ

DEQRUPDO

FRQGLWLRQ

HJ

LQWHUUXSWLRQ

GXULQJ

FRQILJXUDWLRQ

SURJUDPPLQJ WKH )06 DQG

RU
WKH

UHDGLQJ RI D QRUPDO FKHFNOLVW  RU

5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU WR

([SHULHQFLQJ WDVN RYHUORDG LH EHLQJ 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

GLVUXSWLRQV

PDOIXQFWLRQ

2PLWWLQJ DQ DFWLRQ DQG IDLOLQJ WR GHWHFW DQG


FRUUHFW

DQ XQDQWLFLSDWHG VLWXDWLRQ 

0LQRU

0LVVLQJ RU PLVLQWHUSUHWLQJ DQ $7& LQVWUXFWLRQ


SRVVLEO\ UHVXOWLQJ LQ WUDIILF FRQIOLFW RU UXQZD\

+HDGGRZQ ZRUN 

IOLJKW LQWR WHUUDLQ 

&RPPXQLFDWLRQV 

FDQ

HJ
WXUQ

PLQRU

URXWLQH

RYHU VRPH LQWHUUXSWLRQV  GLVWUDFWLRQV DQG QRW RYHU

HTXLSPHQW

IOLJKW

LQWR

VRPH

RWKHUV

LV

WKH

ILUVW

VWHS

LQ

GHYHORSLQJ

SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH

FKDOOHQJLQJ HYHQW

$FWLRQV WKDW PD\ EH FRQWUROOHG HJ 623V DFWLRQV

(IIHFW RI ,QWHUUXSWLRQV RU 'LVWUDFWLRQV

LQLWLDWLRQ

EUHDN

WKH

IORZ

RI

RQJRLQJ

FRFNSLW

FRQWUROOHG

DFWLYLWLHV

623V

1RUPDO FKHFNOLVWV

&RPPXQLFDWLRQV

0RQLWRULQJ

VKRXOG

EH

HJ

$7&

FRPPXQLFDWLRQV

RU

IOLJKW

$GKHULQJ WR WKH 6WHULOH &RFNSLW 5XOH FDQ ODUJHO\

LH

OLVWHQLQJ

SURFHVVLQJ

V\VWHPV

PRQLWRULQJ

7KH 6WHULOH &RFNSLW 5XOH UHIOHFWV WKH UHTXLUHPHQW RI


86 )$5 3DUW  

WDVNV

LH

1R IOLJKW FUHZPHPEHU PD\ HQJDJH LQ QRU PD\


DQ\ SLORW LQ FRPPDQG SHUPLW DQ\ DFWLYLW\ GXULQJ

3)31) PXWXDO FURVVFKHFN DQG EDFNXS  DQG

UHGXFH LQWHUUXSWLRQV DQG GLVWUDFWLRQV

UHVSRQGLQJ 

FKHFNOLVWV

DWWHQGDQW LQWHUUXSWLRQV 

LH DFWLRQV RU FRPPXQLFDWLRQV  WKLV LQFOXGHV 

QRUPDO

SUHYHQW LQWHUIHUHQFH ZLWK DFWLRQV WKDW FDQQRW EH

7KH SULPDU\ HIIHFW RI LQWHUUXSWLRQV RU GLVWUDFWLRQV LV


WR

RI

VFKHGXOHG GXULQJ SHULRGV RI OHVV OLNHO\ GLVUXSWLRQ WR

D FULWLFDO SKDVH RI IOLJKW ZKLFK FRXOG GLVWUDFW DQ\


IOLJKW FUHZPHPEHU IURP WKH SHUIRUPDQFH RI KLV

3UREOHP VROYLQJ DFWLYLWLHV

RU KHU GXWLHV RU ZKLFK FRXOG LQWHUIHUH LQ DQ\ ZD\


ZLWK WKH SURSHU FRQGXFW RI WKRVH GXWLHV 

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

,QWUD&RFNSLW &RPPXQLFDWLRQV 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)RU WKH SXUSRVH RI WKLV UHTXLUHPHQW DQ DFWLYLW\

7KH LPSOHPHQWDWLRQ RI WKH VWHULOH FRFNSLW UXOH E\

LQFOXGHV

FDELQ FUHZ FUHDWHV WZR FKDOOHQJHV

HQJDJLQJ

ZLWKLQ

WKH

LQ

QRQHVVHQWLDO

FRFNSLW

DQG

FRQYHUVDWLRQ
QRQHVVHQWLDO

+RZ WR LGHQWLI\ WKH  IW OLPLW "

FRPPXQLFDWLRQ EHWZHHQ WKH FDELQ DQG FRFNSLW

+RZ

WR

LGHQWLI\

RFFXUUHQFHV

WKDW

ZDUUDQW

EUHDNLQJ WKH VWHULOH FRFNSLW UXOH "

FUHZV 

6HYHUDO PHWKRGV IRU VLJQDOLQJ WR WKH FDELQ FUHZ


7KH WHUP FULWLFDO SKDVHV RI IOLJKW HQFRPSDVVHV

WKH FURVVLQJ RI WKH  IHHW OLPLW KDYH EHHQ


HYDOXDWHG HJ XVLQJ WKH DOOFDELQDWWHQGDQWV FDOO RU

DOO JURXQG RSHUDWLRQV LQYROYLQJ WD[L WDNHRII


DQG

ODQGLQJ

DQG

DOO

RWKHU

IOLJKW

D SXEOLFDGGUHVV DQQRXQFHPHQW 

RSHUDWLRQV

EHORZ  IHHW H[FHSW FUXLVH IOLJKW 

: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

:KHQ RSHUDWLQJ WR RU IURP D KLJK HOHYDWLRQ DLUSRUW D


GHILQLWLRQ

EDVHG

RQ





IW

$*/

PLJKW

EH

FRQVLGHUHG DV PRUH DSSURSULDWH


&RPSO\LQJ ZLWK WKH VWHULOH FRFNSLW UXOH GXULQJ WD[L
RXW

DQG

WD[LLQ

UHTXLUHV

H[WUD

GLVFLSOLQH

DV

WD[L

,QWHUUXSWLRQV  GLVWUDFWLRQV GXULQJ WD[L LV WKH PDLQ


LQ

WDNHRII

DFFLGHQWV

DQG

DUH

FRQVLGHUHG

WR

)LUH EXUQLQJ RGRU RU VPRNH LQ WKH FDELQ

0HGLFDO HPHUJHQF\

8QXVXDO QRLVH RU YLEUDWLRQ HJ HYLGHQFH RI


WDLOVWULNH 

KLJK ZRUNORDG DQG FRQFHQWUDWLRQ

IDFWRU

RFFXUUHQFHV

SKDVHV RIWHQ SURYLGH D UHOLHI EHWZHHQ SKDVHV RI

FDXVDO

IROORZLQJ

ZDUUDQW EUHDNLQJ WKH VWHULOH FRFNSLW UXOH

UXQZD\

LQFXUVLRQV

(QJLQH ILUH WDLO SLSH RU QDFHOOH WRUFKLQJ IODPH 

)XHO RU IOXLG OHDNDJH

(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  

([WUHPH ORFDO WHPSHUDWXUH FKDQJHV

7KH VWHULOH FRFNSLW UXOH VKRXOG EH LPSOHPHQWHG ZLWK

(YLGHQFH RI GHLFLQJ SUREOHP

&DUW VWRZDJH SUREOHP

6XVSLFLRXV XQFODLPHG EDJ RU SDFNDJH DQG

JRRG FRPPRQ VHQVH LQ RUGHU QRW WR EUHDN WKH


FRPPXQLFDWLRQ OLQH EHWZHHQ IOLJKW FUHZPHPEHUV RU
EHWZHHQ FDELQ FUHZ DQG IOLJKW FUHZ
$GKHUHQFH WR WKH 6WHULOH &RFNSLW 5XOH VKRXOG QRW

DIIHFW

8VH RI JRRG &50 SUDFWLFHV E\ IOLJKW FUHZ DQG

&RPPXQLFDWLRQ RI HPHUJHQF\ RU VDIHW\ UHODWHG

$Q\ RWKHU FRQGLWLRQ DV GHHPHG UHOHYDQW E\ WKH


VHQLRU FDELQ FUHZPHPEHU SXUVHU 

7KLV

OLVW

LQIRUPDWLRQ E\ FDELQ FUHZ

&DELQ

EUHDN

WHFKQLFDO

VWHULOH

FRFNSLW

UXOH

RU

QHHG
WR

VXLW

WR

EH

DGMXVWHG

IRU

HDFK

LQGLYLGXDO

FRPSDQ\

ORFDO

PD\

KHVLWDWH

SROLF\

7KH 86 )$$ DFNQRZOHGJHV WKDW LW LV EHWWHU WR


WKH

PD\

UHJXODWLRQV

WKDQ

WR

IDLO

WR

FRPPXQLFDWH

FUHZPHPEHUV
RFFXUUHQFHV

WR

WKH

IOLJKW

WR

UHSRUW

FUHZ

HJ

EHFDXVH RI FXOWXUDO DVSHFWV FRPSDQ\ SROLFLHV RU


LQWLPLGDWLRQ 

,QWUD&RFNSLW &RPPXQLFDWLRQV 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

UHFDOOHG E\ WKH FDSWDLQ GXULQJ WKH SUHIOLJKW EULHILQJ

SUHHPSWLQJ WDVNV

7R

RYHUFRPH

WKLV

UHOXFWDQFH

WKH

$QDO\VHV RI DYLDWLRQ VDIHW\ UHSRUWV LQGLFDWH WKDW WKH

DUH FDXVHG E\ WKH IROORZLQJ

LQWHUIHUHQFH

1RQIOLJKWUHODWHG FRQYHUVDWLRQV

LQWHUUXSW FRQYHUVDWLRQV ZKHQ DSSURDFKLQJ WKH


QH[W

1RQIOLJKWUHODWHG UDGLR FDOOV DQGRU

1RQHVVHQWLDO SXEOLFDGGUHVV DQQRXQFHPHQWV

QH[W

DOWLWXGH

GHILQH WDVN VKDULQJ IRU )06 SURJUDPPLQJ RU


GHSHQGLQJ

EHLQJ

XVHG

RQ

DQG

WKH
RQ

OHYHO
WKH

RI

IOLJKW

SKDVH 623V 

3UHYHQWLRQ 6WUDWHJLHV DQG /LQHVRIGHIHQVH


DQG

WKH

+HDGGRZQ ZRUN )06 SURJUDPPLQJ RU FKDUW

DXWRPDWLRQ

LQWHUDFWLRQ

RU

UHYLHZ 

UHSURJUDPPLQJ

RI

WDUJHW

UHVWULFWLRQ  FRQVWUDLQW

OHYHO

RU

NHHS LQWUDFRFNSLW FRPPXQLFDWLRQV EULHI FOHDU

GHILQHG

'LVWUDFWLRQV E\ FDELQ FUHZPHPEHUV

KLJK

FRPSHWLQJ

DQG FRQFLVH DQG

RI

&RPPXQLFDWLRQV 

PRVW IUHTXHQW YLRODWLRQV RI WKH VWHULOH FRFNSLW UXOH

WKH

FRPPXQLFDWLRQ

SODQ ORQJ KHDGGRZQ WDVNV LQ ORZZRUNORDG


SHULRGV DQG

EHWZHHQ IOLJKW FUHZPHPEHUV DQG EHWZHHQ IOLJKW

FUHZ DQG FDELQ FUHZV FRQVWLWXWHV WKH ILUVW OLQH RI

DQQRXQFH WKDW \RX DUH JRLQJ KHDGGRZQ

GHIHQVH WR UHGXFH HUURUV


7KH

IRXQGDWLRQV

IRU

DQ

HIIHFWLYH

OLQH

RI

5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU WR


DQ XQDQWLFLSDWHG VLWXDWLRQ

FRPPXQLFDWLRQ DQG LQWHUDFWLRQ EHWZHHQ DOO IOLJKW

FUHZPHPEHUV DQG FDELQ FUHZPHPEHUV VKRXOG EH


HPEHGGHG LQ

NHHS WKH $3 HQJDJHG WR GHFUHDVH ZRUNORDG


XQOHVV RWKHUZLVH UHTXLUHG

&RPSDQ\ SROLFLHV

623V

&50 WUDLQLQJ DQG

/HDGHUVKLS

DGKHUH WR 3)  31) WDVN VKDULQJ IRU DEQRUPDO


 HPHUJHQF\ FRQGLWLRQV 31) VKRXOG PDLQWDLQ
VLWXDWLRQDO DZDUHQHVV PRQLWRU DQG EDFNXS
WKH 3)  DQG

UROH

RI

WKH

SLORW

LQ

FRPPDQG

JLYH SDUWLFXODU DWWHQWLRQ WR QRUPDO FKHFNOLVWV


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

6WHULOH &RFNSLW 5XOH

2SHUDWLRQV *ROGHQ 5XOHV DQG

6WDQGDUG &DOOV

FKHFNOLVW FRPSOHWH
7KH DERYH OLQHV RI GHIHQVH PLQLPL]H WKH IOLJKW FUHZ
H[SRVXUH WR GLVUXSWLRQV FDXVHG E\ LQWHUUXSWLRQV DQG
GLVWUDFWLRQV

,QWUD&RFNSLW &RPPXQLFDWLRQV 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV

6XPPDU\ RI NH\ SRLQWV

%HFDXVH VRPH LQWHUUXSWLRQV DQG GLVWUDFWLRQV PD\

,QWHUUXSWLRQV DQG GLVWUDFWLRQV XVXDOO\ UHVXOW IURP WKH

EH

IROORZLQJ IDFWRUV

VXEWOH

DQG

LQVLGLRXV

WKH

ILUVW

SULRULW\

LV

WR

UHFRJQL]H DQG LGHQWLI\ WKH GLVUXSWLRQ

LH

7KH VHFRQG SULRULW\ LV WR UHHVWDEOLVK VLWXDWLRQDO

,GHQWLI\ 


x

:KDW ZDV , GRLQJ"

FDELQ

FUHZ

+HDGGRZQ ZRUN RU

5HVSRQGLQJ WR DQ DEQRUPDO FRQGLWLRQ RU DQ

EH

*ROGHQ

SURYLGH

5XOHV

FOHDU

JXLGHOLQHV IRU WDVN SULRULWL]DWLRQ 


1DYLJDWH

&RPPXQLFDWH

DQG

0DQDJH

LQ

623V

2SHUDWLRQV *ROGHQ 5XOHV

6WDQGDUG FDOOV

6WHULOH FRFNSLW UXOH DV DSSOLFDEOH  DQG

5HFRYHU\ WHFKQLTXHV VXFK DV

WKDW RUGHU

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

DQG

WKH

$7&

RU

IURP

WKH

,GHQWLI\ DVN GHFLGH DFW DQG

3ULRULWL]H SODQ YHULI\

$VVRFLDWHG %ULHILQJ 1RWHV

WLPH DQG FRQGLWLRQV SHUPLW $VNLQJ IRU PRUH WLPH


IURP

LQWHUUXSWLRQV

SHUVRQDO OLQHRIGHIHQVH

3ULRULWL]H 

HJ

PLQLPL]H

PRVW HIIHFWLYH FRPSDQ\ SUHYHQWLRQ VWUDWHJ\ DQG

DSSOLHG

)O\

WR

6WULFW DGKHUHQFH WR WKH IROORZLQJ VWDQGDUGV LV WKH

:KDW GHFLVLRQ RU DFWLRQ VKDOO , WDNH WR JHW

2SHUDWLRQV

GHYHORSHG

GLVWUDFWLRQV DQG WR OHVVHQ WKHLU HIIHFWV

7KH IROORZLQJ GHFLVLRQPDNLQJSURFHVV VKRXOG EH

3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG

:KHUH ZDV , LQWHUUXSWHG"

EDFN RQ WUDFN "

FUHZ

XQDQWLFLSDWHG VLWXDWLRQ

'HFLGH$FW 

IOLJKW

$VN 


x

LQFOXGLQJ

FRPPXQLFDWLRQV 

DZDUHQHVV DV IROORZV

3LORW  FRQWUROOHU RU LQWUDFRFNSLW FRPPXQLFDWLRQV

RWKHU

FUHZPHPEHU ZLOO SUHYHQW EHLQJ UXVKHG LQ WKH

7KH

DFFRPSOLVKPHQW RI FRPSHWLQJ DFWLRQV

LQIRUPDWLRQ WR VXSSOHPHQW WKLV GLVFXVVLRQ

,Q RWKHU ZRUGV WDNH WLPH WR PDNH WLPH

  2SHUDWLRQV *ROGHQ 5XOHV

9HULI\ 

 6WDQGDUG &DOOV

8VLQJ 623V WHFKQLTXHV LH FRQFHSW RI QH[W

  8VH RI 1RUPDO &KHFNOLVWV

  +XPDQ )DFWRUV LQ $SSURDFKDQG

WDUJHW DFWLRQ EORFNV HYHQW WULJJHUV DQG QRUPDO


FKHFNOLVWV  HQVXUH WKDW WKH DFWLRQ V WKDW KDG
EHHQ SRVWSRQHG KDYH EHHQ GXO\ DFFRPSOLVKHG

IROORZLQJ

%ULHILQJ

1RWHV

SURYLGH

H[SDQGHG

/DQGLQJ $FFLGHQWV

)LQDOO\ LI WKH GLVUXSWLRQ LQWHUUXSW WKH FRXUVH RI D

QRUPDO FKHFNOLVW RU DEQRUPDO FKHFNOLVW DQ H[SOLFLW

  &50 ,VVXHV LQ $SSURDFKDQGODQGLQJ


$FFLGHQWV

KROG VKRXOG EH YHUEDOL]HG WR PDUN WKH LQWHUUXSWLRQ RI


WKH FKHFNOLVW DQG DQ H[SOLFLW FRPPDQG VKRXOG EH

XVHG IRU UHVXPLQJ WKH FKHFNOLVW

  (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

,QWUD&RFNSLW &RPPXQLFDWLRQV 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ UHIHUHQFHV
x

,&$2  3UHSDUDWLRQ RI DQ 2SHUDWLRQV PDQXDO


'RF  

,&$2

+XPDQ

)DFWRUV

7UDLQLQJ

0DQXDO

'RF  

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


)DFWRUV LQ $LU 7UDIILF &RQWURO &LUFXODU  

)$5    RU  


&50 7UDLQLQJ

)$5  6WHULOH FRFNSLW UXOH

-$5236   RU   &50 7UDLQLQJ

-$5236  G  6WHULOH FRFNSLW

,QWUD&RFNSLW &RPPXQLFDWLRQV 0DQDJLQJ ,QWHUUXSWLRQV DQG 'LVWUDFWLRQV LQ &RFNSLW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

$OWLPHWHUDQG$OWLWXGH,VVXHV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

$OWLPHWHU6HWWLQJ8VHRI5DGLR$OWLPHWHU

,QWURGXFWLRQ

41+ RU 4)( "

2SHUDWRUV ZLWK LQWHUQDWLRQDO URXWHV DUH H[SRVHG WR


GLIIHUHQW VWDQGDUGV LQ WHUPV RI
x $OWLWXGH PHDVXUHPHQW LH IHHW RU PHWHUV 
x $OWLWXGH UHIHUHQFH VHWWLQJXQLWV LH KHFWRSDVFDO
RU LQFKRIPHUFXU\ 41+ RU 4)(  DQG
x (QYLURQPHQWDO FRQGLWLRQV LH DWPRVSKHULF
SUHVVXUH FKDQJHV DQGRU ORZ 2$7 RSHUDWLRQ 

7KH XVH RI 41+ IRU RSHUDWLRQV EHORZ WKH WUDQVLWLRQ


OHYHO  DOWLWXGH HOLPLQDWHV WKH QHHG IRU FKDQJLQJ WKH
DOWLPHWHUVHWWLQJ
x 'XULQJ WKH DSSURDFK DQG ODQGLQJ DQG
x 'XULQJ WKH PLVVHG DSSURDFK DV UHTXLUHG
:KHQ 4)( LV XVHG IRU WKH DSSURDFK WKH DOWLPHWHU
PXVW EH FKDQJH WR 41+ IRU WKH PLVVHGDSSURDFK
XQOHVV WKH PLVVHGDSSURDFK SURFHGXUH LV GHILQHG
ZLWK UHIHUHQFH WR 4)(
6RPH RSHUDWRUV VHW WKH DOWLPHWHU WR 4)( LQ DUHDV RI
RSHUDWLRQ ZKHUH WKH $7& DQG WKH PDMRULW\ RI RWKHU
RSHUDWRUV XVH 41+ 7KLV UHTXLUHV DGHTXDWH 623V
IRU DOWLPHWHUVHWWLQJ DQG IRU FRQYHUVLRQ RI DVVLJQHG
DOWLWXGHV WR KHLJKWV

7KLV %ULHILQJ 1RWH SURYLGHV D UHYLHZ DQG GLVFXVVLRQ


RI WKH IROORZLQJ DVSHFWV KLJKOLJKWLQJ WKH OHVVRQV
OHDUQHG IURP DSSURDFKDQGODQGLQJ LQFLGHQWV DQG
DFFLGHQWV
x %DURPHWULFDOWLPHWHU UHIHUHQFH 41+ RU 4)( 
x 8VH RI GLIIHUHQW XQLWV IRU DOWLWXGH PHDVXUHPHQW
LH IHHW YHUVXV PHWHUV DQG DOWLPHWHU VHWWLQJ
LH ,Q+J YHUVXV K3D 
x 6HWWLQJ RI EDURDOWLPHWHU EXJ DQG UDGLRDOWLPHWHU
'+
x 5DGLRDOWLPHWHU FDOORXWV DQG
x /RZ2$7 RSHUDWLRQ

$OWLPHWHUVHWWLQJ 8QLWV

6WDWLVWLFDO 'DWD

2SHUDWRUV ZLWK LQWHUQDWLRQDO URXWHV DUH H[SRVHG WR


WKH XVH RI GLIIHUHQW DOWLPHWHU VHWWLQJ XQLWV
x +HFWRSDVFDOV K3D  SUHYLRXVO\ UHIHUUHG WR DV
PLOLEDUV PE 
x ,QFKHVRIPHUFXU\ LQ +J 

'HYLDWLRQ IURP WKH LQWHQGHG YHUWLFDO IOLJKW SURILOH


FDXVHG E\ RPLVVLRQ RI DQ DFWLRQ RU E\ DQ LQFRUUHFW
DFWLRQ LV IUHTXHQWO\ REVHUYHG GXULQJ OLQH FKHFNV DQG
DXGLWV
7KH ODFN RI VLWXDWLRQDO DZDUHQHVV SDUWLFXODUO\ WKH
ODFN RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV LV D FDXVDO
IDFWRU LQ   RI DSSURDFKDQGODQGLQJ DFFLGHQWV
WKLV LQFOXGHV PRVW DFFLGHQWV LQYROYLQJ &),7 

:KHQ LQ+J LV XVHG IRU DOWLPHWHU VHWWLQJ XQXVXDO


EDURPHWULF SUHVVXUHV VXFK DV
x ;; LQ+J LH DQ XQXVXDOO\ ORZ SUHVVXUH  RU
x ;; LQ+J LH DQ XQXVXDOO\ KLJK SUHVVXUH 
PD\ JR XQGHWHFWHG ZKHQ OLVWHQLQJ WR WKH $7,6 RU
$7& UHVXOWLQJ LQ D PRUH XVXDO ;; DOWLPHWHU
VHWWLQJ EHLQJ VHW

$OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$  LQ+J GLVFUHSDQF\ LQ WKH DOWLPHWHU VHWWLQJ

,Q

UHVXOWV LQ D IW HUURU LQ WKH LQWHQGHG DFWXDO

PLVWDNHQO\

DOWLWXGH

DV

LOOXVWUDWHG

E\

)LJXUH

)LJXUH

)LJXUH



DQ

VHW

DFWXDO

41+

WKH

DOWLPHWHU

RQ

RI


DV

K3D



ZDV
LQ+J

HTXLYDOHQW WR  K3D  UHVXOWLQJ LQ WKH DFWXDO



DOWLWXGH  KHLJKW EHLQJ  IW ORZHU WKDQ LQGLFDWHG

)LJXUH  DQG )LJXUH  DVVXPH D  IW DLUILHOG


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
6HD OHYHO

41+  K3D

$OWLPHWHU HUURU
 IW

$FWXDO KHLJKW
 IW $)/

,QGLFDWHG DOWLWXGH

$FWXDO DOWLWXGH

 IW

 IW

$OWLPHWHU VHWWLQJ  LQ+J  K3D

)LHOG HOHYDWLRQ
 IW
6HD OHYHO

41+ ;; LQ+J

)LJXUH 

$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

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 

WKH

IROORZLQJ

UXOHV

VKRXOG

EH

XVHG

E\

$OO GLJLWV DV ZHOO DV WKH XQLW HJ LQFKHV RU


KHFWRSDVFDOV VKRXOG EH LQGLFDWHG
$ WUDQVPLVVLRQ VXFK DV DOWLPHWHU VHWWLQJ VL[
VHYHQ FDQ EH LQWHUSUHWHG DV   RU

$FWXDO KHLJKW
,QGLFDWHG DOWLWXGH
 IW

$FWXDO DOWLWXGH

 IW $)/

 LQ+J RU DV  K3D

)LHOG HOHYDWLRQ

,QGLFDWLQJ

 IW

 IW

$OWLPHWHU VHWWLQJ ;;


41+ ;; LQ+J

6HD OHYHO

WKH

DOWLPHWHUVHWWLQJ

XQLW

SUHYHQWV

FRQIXVLRQ RU DOORZV GHWHFWLRQ DQG FRUUHFWLRQ RI D

$OWLPHWHU HUURU

SUHYLRXV HUURU

 IW

:KHQ XVLQJ LQFKHV RI PHUFXU\ LQ+J  ORZ


VKRXOG SUHFHGH DQ DOWLPHWHU VHWWLQJ RI ;;

)LJXUH 

LQ+J DQG KLJK 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

$OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH LQFRUUHFW VHWWLQJ RI WKH DOWLPHWHU UHIHUHQFH RIWHQ

6HWWLQJ

LV WKH UHVXOW RI RQH RU PRUH RI WKH IROORZLQJ IDFWRUV

5DGLRDOWLPHWHU '+

+LJK ZRUNORDG

7KH

'HYLDWLRQ IURP QRUPDO WDVN VKDULQJ

,QWHUUXSWLRQV DQG GLVWUDFWLRQV DQG

$EVHQFH RI HIIHFWLYH FURVVFKHFN DQG EDFNXS

%DURPHWULFDOWLPHWHU

EDURPHWULFDOWLPHWHU

DOWLPHWHU

RI

'+

VKRXOG

EH

EXJ

DQG

VHW

LQ

%XJ

RI

OLQH

WKH
ZLWK

DQG

UDGLR
$LUEXV

,QGXVWULH 623V RU FRPSDQ\ 623V

$SSURDFK

%DUR %XJ

5$ '+

9LVXDO

0'$'$ RI

 IW

EHWZHHQ FUHZPHPEHUV
$GKHUHQFH WR WKH GHILQHG WDVN VKDULQJ IRU QRUPDO RU

LQVWUXPHQW

DEQRUPDO  HPHUJHQF\ FRQGLWLRQV DQG WKH XVH RI

DSSURDFK

QRUPDO FKHFNOLVWV DUH WKH PRVW HIIHFWLYH OLQHVRI

RU

GHIHQVH DJDLQVW DOWLPHWHU VHWWLQJ HUURUV

1RWH 

 IW DERYH
DLUILHOG
HOHYDWLRQ

8VH RI 0HWULF $OWLPHWHU

0'$

1RQ,/6

8VLQJ PHWULF DOWLWXGHV LQ FHUWDLQ FRXQWULHV VXFK DV

 IW

WKH &RPPRQZHDOWK RI ,QGHSHQGHQW 6WDWHV >&,6@ DQG


7KH

3HRSOHV

5HSXEOLF

RI

&KLQD

DOVR

1RWH 

UHTXLUHV

DGDSWHG SURFHGXUHV IRU VHWWLQJ WKH VHOHFWHG DOWLWXGH


RQ

WKH

)&8

DQG

WKH

XVH

RI

PHWULF

'$

,/6 &$7 ,

DOWLPHWHUV

 IW

RU FRQYHUVLRQ WDEOHV IRU UHDGLQJ WKH DOWLWXGH LQ

1RWH 

1R 5$

PHWHUV

,/6 &$7 , 5$

'$

'HVFHQW

,/6 &$7 ,,

1RWH 

7KH WUDQVLWLRQ DOWLWXGH  IOLJKW OHYHO FDQ EH HLWKHU

,/6 &$7 ,,,

'$

:LWK '+

1RWH 

,/6 &$7 ,,,

7'= DOWLWXGH

5HVHW

RI

$OWLPHWHU

6HWWLQJ

LQ

&OLPE

RU

)L[HG IRU WKH ZKROH FRXQWU\ HJ )/  LQ WKH


8QLWHG 6WDWHV 

)L[HG IRU D JLYHQ DLUSRUW DV LQGLFDWHG LQ WKH


DSSURDFK FKDUW  RU

5$ '+

5$ '+

$OHUW KHLJKW

:LWK QR '+

9DULDEOH GHSHQGLQJ RQ 41+ DV LQGLFDWHG LQ WKH


$7,6 PHVVDJH 

7DEOH 
7DEOH EDVHG RQ XVH RI 41+

'HSHQGLQJ RQ WKH DLUOLQHV  IOLJKW FUHZV 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

UHIHUHQFH DQG FDXVH FUHZ FRQIXVLRQ

0,1,080

&$7

,,,

,/6

FDOORXW

DSSURDFKHV
LV

EDVHG

RQ

WKH
WKH

DSSURDFK
EDURPHWULF

DOWLPHWHU EXJ VHW DW WKH 0'$ + RU '$ + 

$OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

1RWH  

:KHQHYHU

&$7 ,,, '$

IURP WKH VWDQGDUG WHPSHUDWXUH WKH LQGLFDWHG DOWLWXGH

RU

WKH

&$7

'$

LQ

UHDGLQHVV

IRU

GHYLDWHV

VLJQLILFDQWO\

IROORZV

5DGLRDOWLPHWHU &DOORXWV

([WUHPH

KLJK WHPSHUDWXUH 

WKH WUXH DOWLWXGH LV

KLJKHU

WKDQ WKH LQGLFDWHG

DOWLWXGH

5DGLRDOWLPHWHU FDOORXWV FDQ EH HLWKHU

$QQRXQFHG YHUEDOL]HG E\ WKH 31) RU WKH )OLJKW


(QJLQHHU RU

WHPSHUDWXUH

FRUUHVSRQGLQJO\ GHYLDWHV IURP WKH WUXH DOWLWXGH DV

SRVVLEOH UHYHUVLRQ WR &$7 , PLQLPDV

WKH

([WUHPH

$XWRPDWLFDOO\ JHQHUDWHG E\ D V\QWKHVL]HG YRLFH

ORZ WHPSHUDWXUH 

WKH WUXH DOWLWXGH LV

ORZHU

WKDQ WKH LQGLFDWHG

DOWLWXGH WKXV FUHDWLQJ D ORZHU WKDQ DQWLFLSDWHG


WHUUDLQ VHSDUDWLRQ DQG D SRWHQWLDO REVWDFOH
FOHDUDQFH KD]DUG

&DOORXWV VKRXOG EH WDLORUHG WR WKH DLUOLQH RSHUDWLQJ


SROLF\ DQG WR WKH W\SH RI DSSURDFK

)RU H[DPSOH ZKHQ SHUIRUPLQJ DQ ,/6 DSSURDFK ZLWK

7R HQKDQFH WKH IOLJKW FUHZV WHUUDLQ DZDUHQHVV D


FDOORXW

5DGLR

DOWLPHWHU

DOLYH

VKRXOG

EH

SXEOLVKHG



LQWHUFHSWLRQDOWLWXGH

DQQRXQFHG E\ WKH ILUVW FUHZPHPEHU REVHUYLQJ WKH

IW

DQG

PLQLPXP
D



JOLGHVORSH
&

2$7

WKH

PLQLPXP JOLGHVORSH LQWHUFHSWLRQ DOWLWXGH VKRXOG EH

LQFUHDVHG E\  IW

UDGLR DOWLPHWHU DFWLYDWLRQ DW  IW KHLJKW $*/


7KH UDGLR DOWLPHWHU UHDGLQJ VKRXOG WKHQ EH LQFOXGHG

7UXH DOWLWXGH

LQ WKH LQVWUXPHQW VFDQQLQJ IRU WKH UHPDLQGHU RI WKH


DSSURDFK

*LYHQ DWPRVSKHULF SUHVVXUH


SUHVVXUH DOWLWXGH

5DGLR DOWLPHWHU UHDGLQJV EHORZ REVWDFOH FOHDUDQFH

,QGLFDWHG
DOWLWXGH

OHYHOV OLVWHG EHORZ VKRXOG DOHUW WKH IOLJKW FUHZ

,QLWLDO DSSURDFK   IW $*/

,QWHUPHGLDWH

DSSURDFK

RU

PLQLPXP

UDGDU

YHFWRULQJ DOWLWXGH   IW $*/

 IW

 IW
 IW

 IW
 IW

)LQDO DSSURDFK QRQSUHFLVLRQ DSSURDFKHV ZLWK


GHILQHG )$)   IW $*/

1RWH

7KH

UDGLR

DOWLPHWHU

LQGLFDWHV

WKH

DLUFUDIW

+LJK 2$7

FXUUHQW KHLJKW DERYH WKH JURXQG KHLJKW $*/ DQG

6WDQGDUG 2$7

/RZ 2$7

QRW WKH KHLJKW DERYH WKH DLUILHOG HOHYDWLRQ

)LJXUH 

8QOHVV WKH DLUSRUW IHDWXUHV KLJK FORVHLQ WHUUDLQ WKH

(IIHFW RI 2$7 RQ 7UXH $OWLWXGH

UDGLRDOWLPHWHU UHDGLQJ VKRXOG UHDVRQDEO\ DJUHH ZLWK


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

WHUUDLQ FOHDUDQFH

DOWLPHWHUVHWWLQJ VRXUFH

DOWLWXGH

KHLJKW

$OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU


3DJH 

DERYH

WKH

HOHYDWLRQ

RI

WKH

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)O\LQJ LQWR D ORZ WHPSHUDWXUH DUHD KDV WKH VDPH

,&$2

HIIHFW DV IO\LQJ LQWR D ORZSUHVVXUH DUHD WKH DLUFUDIW

FRUUHFWLRQV

3$16236

LV ORZHU WKDQ WKH DOWLPHWHU LQGLFDWHV

WKH WHPSHUDWXUH HIIHFW RQ WKH WUXH DOWLWXGH VKRXOG QRW

IRU

GRHV

QRW

H[WUHPH

SURYLGH

KLJK

DOWLWXGH

WHPSHUDWXUHV

EH LJQRUHG ZKHQ SODQQLQJ IRU D FRQVWDQWDQJOH QRQ


7KHVH HIIHFWV DUH VXPPDUL]HG

DQG

LOOXVWUDWHG

SUHFLVLRQ DSSURDFK LH WR PDLQWDLQ WKH UHTXLUHG

LQ

7DEOH  IHDWXULQJ D ZHOONQRZQ DYLDWLRQ JROGHQ UXOH

IOLJKW SDWK DQJOH DQGRU YHUWLFDO VSHHG 

6XPPDU\ RI NH\ SRLQWV

)URP

7R

+LJK

/RZ

$OWLPHWHUVHWWLQJ HUURUV UHVXOW LQ D ODFN RI YHUWLFDO


$WPRVSKHULF

/RRN
RXW
EHORZ

3UHVVXUH

2$7

:DUP

VLWXDWLRQDO

DZDUHQHVV

WKH

IROORZLQJ

NH\

SRLQWV

VKRXOG EH HPSKDVL]HG WR PLQLPL]H DOWLPHWHUVHWWLQJ


HUURUV DQG WR RSWLPL]H WKH XVH RI WKH EDURPHWULF
DOWLPHWHU EXJ DQG UDGLRDOWLPHWHU '+

&ROG

$ZDUHQHVV RI DOWLPHWHU VHWWLQJ FKDQJHV GXH WR


SUHYDLOLQJ ZHDWKHU FRQGLWLRQV H[WUHPH FROG RU

7DEOH 
7KH

SLORW

LV

UHVSRQVLEOH

ZDUP

IRU

SHUIRUPLQJ

WKLV

FRUUHFWLRQ H[FHSW ZKHQ XQGHU UDGDU FRQWURO LQ D


LV

LQFOXGLQJ

DFFRXQWLQJ

UHVSRQVLEOH
IRU

VWHHS

IURQWDO

VXUIDFHV

VHPL

IRU

WHUUDLQ

WKH

FROG

$ZDUHQHVV RI WKH DOWLPHWHU VHWWLQJ XQLW LQ XVH DW


WKH GHVWLQDWLRQ DLUSRUW

UDGDU YHFWRULQJ DUHD LQ WKLV FDVH WKH FRQWUROOHU


QRUPDOO\

IURQWV

SHUPDQHQW RU VHDVRQDO ORZ SUHVVXUH DUHDV 

FOHDUDQFH

WHPSHUDWXUH

$ZDUHQHVV RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ


XVLQJ WZR LQGHSHQGHQW VRXUFHV IRU FURVVFKHFN

FRUUHFWLRQ

HJ 0(7$5 DQG $7,6 PHVVDJHV 

1HYHUWKHOHVV

WKH

RSHUDWRU

DQGRU

SLORW

VKRXOG

FRQILUP WKLV UHVSRQVLELOLW\ ZLWK WKH DLU WUDIILF VHUYLFHV


RI WKH FRXQWU\ RI RSHUDWLRQ
7KH WHPSHUDWXUH FRUUHFWLRQ RQ DOWLWXGH DIIHFWV WKH

(IIHFWLYH 3)31) FURVVFKHFN DQG EDFNXS

$GKHUHQFH WR 623V IRU

IROORZLQJ SXEOLVKHG DOWLWXGHV ZKLFK WKHUHIRUH VKRXOG

UHVHW RI EDURPHWULFDOWLPHWHUV LQ FOLPE DQG


GHVFHQW IRU H[DPSOH

EH LQFUHDVHG XQGHU ORZ 2$7 RSHUDWLRQ

LQ FOLPE  DW WKH WUDQVLWLRQ DOWLWXGH DQG

LQ GHVFHQW  ZKHQ FOHDUHG WR DQ DOWLWXGH

0($ 06$

7UDQVLWLRQ URXWHV DOWLWXGH

3URFHGXUH WXUQ DOWLWXGH DV DSSOLFDEOH 

)$) DOWLWXGH

DOWLWXGH FDOORXWV

6WHSGRZQ DOWLWXGH V DQG 0'$ + GXULQJ D QRQ


SUHFLVLRQ QRQ,/6 DSSURDFK

UDGLRDOWLPHWHU FDOORXWV DQG

20 FURVVLQJ DOWLWXGH GXULQJ DQ ,/6 DSSURDFK

VHWWLQJ RI EDURPHWULFDOWLPHWHU EXJ DQG UDGLR

DOWLPHWHUV

DOWLPHWHU '+

DQG

:D\SRLQW

FURVVLQJ

DOWLWXGHV

GXULQJ

XVH RI VWDQGE\DOWLPHWHU WR FURVVFKHFN PDLQ

*36

DSSURDFK IORZQ ZLWK YHUWLFDO QDYLJDWLRQ

$OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV

,&$2 $QQH[  3URFHGXUHV IRU $LU 1DYLJDWLRQ


6HUYLFHV

7KH IROORZLQJ %ULHILQJ 1RWHV DOVR UHIHU WR DOWLPHWHU

5XOHV

RI

WKH

$LU

DQG

$LU

7UDIILF

6HUYLFHV 3$165$& 'RF  

VHWWLQJ DQG DOWLWXGH LVVXHV

,&$2 $QQH[  3URFHGXUHV IRU $LU QDYLJDWLRQ

  2SHUDWLQJ 3KLORVRSK\ 623V

  (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

  9ROXPH , )OLJKW SURFHGXUHV  3DUW 9,

  ,QWUD&RFNSLW &RPPXQLFDWLRQV

WDEOH RI WHPSHUDWXUH FRUUHFWLRQV WR EH DGGHG WR

6HUYLFHV $LUFUDIW 2SHUDWLRQV 3$16236 'RF


$OWLPHWHU 6HWWLQJ 3URFHGXUHV  &KDSWHU   1HZ
WKH LQGLFDWHG DOWLWXGH ZKHQ RSHUDWLQJ LQ ORZ 2$7

0DQDJLQJ ,QWHUUXSWLRQV DQG

FRQGLWLRQV

'LVWUDFWLRQV

7KH QHZ 3DUW 9, &KDSWHU  ZLOO EH HIIHFWLYH LQ

  $OWLWXGH 'HYLDWLRQV

1RY DQG ZLOO UHSODFH DQG VXSHUVHGH WKH


FXUUHQW &KDSWHU  RI 3DUW ,,,

5HJXODWRU\ UHIHUHQFHV
x
x

,&$2

$QQH[

0HWHRURORJLFDO

6HUYLFH

RI

DQ

2SHUDWLRQV

PDQXDO

'RF  

IRU

,QWHUQDWLRQDO $LU QDYLJDWLRQ &KDSWHU 

0DQXDO RI UDGLRWHOHSKRQ\ 'RF  

,&$2 $QQH[  8QLWV RI 0HDVXUHPHQW WR EH

+XPDQ )DFWRUV 7UDLQLQJ 0DQXDO 'RF  

+XPDQ )DFWRUV 'LJHVW 1R +XPDQ )DFWRUV LQ

XVHG LQ $LU DQG *URXQG 2SHUDWLRQV 7DEOH 




3UHSDUDWLRQ

$LU 7UDIILF &RQWURO &LUFXODU  

,&$2 $QQH[  2SHUDWLRQV RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

WUDQVSRUW

)$$  'UDIW $& ;;  $OWLPHWHU (UURUV DW &ROG


7HPSHUDWXUHV

$HURSODQH  F DQG $SSHQGL[  

$OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

$OWLWXGH'HYLDWLRQV

)DFWRUV ,QYROYHG LQ $OWLWXGH 'HYLDWLRQV

,QWURGXFWLRQ

$OWLWXGH GHYLDWLRQV PD\ UHVXOW LQ VXEVWDQWLDO ORVV RI


YHUWLFDO VHSDUDWLRQ DQGRU KRUL]RQWDO VHSDUDWLRQ
ZKLFK FRXOG FDXVH D PLGDLU FROOLVLRQ
7UDIILF DYRLGDQFH PDQHXYHUV LI UHTXLUHG XVXDOO\
UHVXOW LQ LQMXULHV WR SDVVHQJHUV DQG FUHZPHPEHUV
SDUWLFXODUO\ WR FDELQ FUHZPHPEHUV 
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI
WKH IDFWRUV LQYROYHG LQ DOWLWXGH GHYLDWLRQV
7KLV GRFXPHQW FDQ EH XVHG IRU VWDQGDORQH UHDGLQJ
RU DV WKH EDVLV IRU WKH GHYHORSPHQW RI DQ DLUOLQHV
DOWLWXGH DZDUHQHVV SURJUDP

$OWLWXGH GHYLDWLRQV XVXDOO\ UHVXOW IURP RQH RI WKH


IROORZLQJ FDXVHV
x 0LVXQGHUVWDQGLQJ WKH DVVLJQHG DOWLWXGH
x 8VH RI DQ LQFRUUHFW DOWLPHWHU VHWWLQJ
x )DLOXUH WR OHYHORII DW WKH DVVLJQHG DOWLWXGH RU
x )DLOXUH WR UHDFK RU PDLQWDLQ WKH DVVLJQHG
DOWLWXGH RU DOWLWXGH UHVWULFWLRQ DW WKH SRLQW RU
WLPH DVVLJQHG E\ $7&
$OWLWXGH GHYLDWLRQV DOZD\V DUH WKH UHVXOW RI D
EUHDNGRZQ LQ HLWKHU
x WKH SLORW  V\VWHP LQWHUIDFH 
 DOWLPHWHU VHWWLQJ XVH RI DXWRSLORW PRQLWRULQJ
RI LQVWUXPHQWV DQG GLVSOD\V RU
x WKH SLORW  FRQWUROOHU LQWHUIDFH 
 FRPPXQLFDWLRQ ORRS
$OWLWXGH GHYLDWLRQV RFFXU DV WKH UHVXOW RI RQH RU D
FRPELQDWLRQ RI WKH IROORZLQJ FRQGLWLRQV
x 7KH FRQWUROOHU DVVLJQV DQ LQFRUUHFW DOWLWXGH RU
UHDVVLJQV D )/ DIWHU WKH DLUFUDIW KDV EHHQ
FOHDUHG WR DQ DOWLWXGH

6WDWLVWLFDO 'DWD

$Q DQDO\VLV E\ WKH 86 )$$ DQG E\ 86 $LUZD\V


LQGLFDWHV WKDW
x $SSUR[LPDWHO\   RI DOWLWXGH GHYLDWLRQV DUH
WKH UHVXOW RI D EUHDNGRZQ LQ WKH SLORWFRQWUROOHU
FRPPXQLFDWLRQ ORRS DQG
x 1HDUO\   RI DOWLWXGH GHYLDWLRQ HYHQWV DIIHFW
WKH FULWLFDO SDLU FRQVWLWXWHG E\ )/   )/ 
RU   IW    IW 
'HILQLQJ DQ $OWLWXGH 'HYLDWLRQ

$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 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

3LORWFRQWUROOHU

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

FRPPXQLFDWLRQ

*HQHUDO

EUHDNGRZQ

PDLQO\ UHDGEDFN  KHDUEDFN HUURUV  HJ


$Q DOWLWXGH DZDUHQHVV SURJUDP VKRXOG HQKDQFH WKH

&RQWUROOHU

WUDQVPLWV

DQ

LQFRUUHFW

PRQLWRULQJ UROH RI WKH 3) DQG 31) E\ VWUHVVLQJ WKH

DOWLWXGH

WKH SLORW GRHV QRW UHDGEDFN DQG WKH FRQWUROOHU

LPSRUWDQFH RI

GRHV QRW FKDOOHQJH WKH DEVHQFH RI UHDGEDFN

YHUEDOL]LQJ

LQWHQWLRQV

DQG

DFWLRQV

ZKHQ WKH\ DUH GLIIHUHQW IURP H[SHFWDWLRQV HJ

3LORW XQGHUVWDQGV DQG UHDGEDFN DQ LQFRUUHFW

GHOD\HG

DOWLWXGH EXW FRQWUROOHU GRHV QRW KHDU EDFN DQG

FOLPE

RU

GHVFHQW

PDQDJHPHQW

RI

DOWLWXGH RU VSHHG UHVWULFWLRQV  DQG

GRHV QRW FRUUHFW WKH FUHZ UHDGEDFN RU

6WDWLQJ

%DFNLQJ XS HDFK RWKHU

3LORW DFFHSWV DQ DOWLWXGH FOHDUDQFH LQWHQGHG


IRU DQRWKHU DLUFUDIW FRQIXVLRQ RI FDOOVLJQV 
&RPPXQLFDWLRQV

3LORW XQGHUVWDQGV DQG UHDGV EDFN WKH FRUUHFW

%UHDNGRZQ

DOWLWXGH RU )/ EXW VHOHFW DQ LQFRUUHFW DOWLWXGH RU


)/  HJ EHFDXVH RI 

FRQIXVLRQ RI QXPEHUV ZLWK DQ RWKHU HOHPHQW

SLORWFRQWUROOHU

FRPPXQLFDWLRQ

5HDGEDFN  KHDUEDFN HUURUV WKLV ULVN LV JUHDWHU


ZKHQ RQH FUHZPHPEHU GRHV QRW PRQLWRU UDGLR
FRPPXQLFDWLRQV EHFDXVH RI RWKHU GXWLHV VXFK

QXPEHU 

DV OLVWHQLQJ WR WKH $7,6 RU EHLQJ LQYROYHG LQ


FRPSDQ\

H[SHFWDWLRQ  DQWLFLSDWLRQ RI DQRWKHU DOWLWXGH

LQWHUUXSWLRQ  GLVWUDFWLRQ RU

EUHDNGRZQ LQ FUHZ FURVVFKHFN DQG EDFNXS

%ORFNHG WUDQVPLVVLRQV RU

&RQIXVLRQ RI FDOO VLJQV

7KH

&RQWUROOHU
x

%H

VLJQLILFDQWO\

WKH

QXPEHU

GLVFXVVHG

DQG

  (IIHFWLYH 3LORW 

&RPPXQLFDWLRQV

FDQ

HQKDQFH

DZDUH

WKDW

UHDGEDFN

KHDUEDFN

HUURUV

7KH SLORW PD\ EH LQWHUUXSWHG RU GLVWUDFWHG


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


UHGXFHG

UHFRPPHQGDWLRQV

LQYROYH PD\ WKH SLORW DQG WKH FRQWUROOHU 

$OWLWXGH $ZDUHQHVV 3URJUDP


VHYHUDO

SDVVHQJHU

DZDUHQHVV RI SLORWV DQG FRQWUROOHU

,QFRUUHFW JRDURXQG SURFHGXUH DQG PDQHXYHU

E\

RU

FRPPXQLFDWLRQV DQG UDLVH WKH OHYHO RI VLWXDWLRQDO

$EVHQFH RI UHVSRQVH WR WKH DOWLWXGH DOHUW DXUDO

SURJUDPV

IROORZLQJ

H[SDQGHG LQ %ULHILQJ 1RWH

$XWRSLORW IDLOV WR FDSWXUH WKH VHOHFWHG DOWLWXGH

DZDUHQHVV

FRPPXQLFDWLRQV

DGGUHVV DQQRXQFHPHQWV 

DQG YLVXDO ZDUQLQJV ZKHQ LQ KDQG IO\LQJ RU

WKH

RI WKH PHVVDJH HJ VSHHG KHDGLQJ RU IOLJKW

RU )/

LQ

ORRS LQFOXGHV

DLUOLQHV
RI

XQGHUVWDQGLQJ

KDYH

RU

ZKHQ

UHDGLQJ

EDFN

WKH

LQVWUXFWLRQ WKLV ELDV XVXDOO\ LV UHIHUUHG WR DV

DOWLWXGH

ZLVKKHDULQJ 

GHYLDWLRQV

7R DGGUHVV WKH PDLQ FDXVHV RI DOWLWXGH GHYLDWLRQV

7KH

FRQWUROOHU

FDOOVLJQV

EH

PD\

DOVR

GLVWUDFWHG

E\

FRQIXVH
RWKHU

VLPLODU

UDGLR

RU

DQ DOWLWXGH DZDUHQHVV SURJUDP VKRXOG LQFOXGH WKH

ODQGOLQH

IROORZLQJ DVSHFWV

DIIHFWHG E\ EORFNHG WUDQVPLVVLRQV RU KLJK

WHOHSKRQH

ZRUNORDG

$OWLWXGH 'HYLDWLRQV
3DJH 

FRPPXQLFDWLRQV

RU

EH

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

8VH

VWDQGDUG

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

SKUDVHRORJ\

IRU

FOHDU

DQG

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
SLORWV

DQG

DOORZV

FRQWUROOHUV

DQ

HDVLHU

WKLV

FRPPRQ

GHWHFWLRQ

DQG

ODQJXDJH

FRUUHFWLRQ

UDGLR

RI

VXFK

DV

FRS\LQJ

WKH

DQQRXQFHPHQWV GXULQJ SHULRGV RI OHVV $7&


FRPPXQLFDWLRQ

8VH RI DQ DGDSWHG SKUDVHRORJ\ WR LQFUHDVH WKH

FRQWUROOHU VLWXDWLRQDO DZDUHQHVV HJ

FRPPXQLFDWLRQV

$7,6 FRPSDQ\ FDOOV DQG SDVVHQJHUVDGGUHVV

HUURUV

3ODQ WDVNV WKDW SUHYHQW DWWHQWLYH OLVWHQLQJ WR

:KHQ
$7&

RQH

EHFDXVH

:KHQ OHDYLQJ DQ DOWLWXGH DQQRXQFH

FUHZPHPEHU

IUHTXHQF\

FDQQRW

EHFDXVH

OHDYLQJ

WKH

RI

PRQLWRU

RWKHU

FRFNSLW

WKH

GXWLHV
WKH

RU

RWKHU

FUHZPHPEHU VKRXOG 
/HDYLQJ >@ IRU >@ RU

/HDYLQJ

>@

DQG

FOLPELQJ

GHVFHQGLQJ

$FNQRZOHGJH

UHFHLYLQJ

WKH

UDGLR

DQG

FRQWUROV DV DSSOLFDEOH

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

WKH

SUHYLRXV

DOWLWXGH

DQ

LPSRUWDQFH

ZKHQ

WDNHV

GHVFHQGLQJ

LQ

KLJKOLJKWLQJ

LQIRUPDWLRQ

SDUWLFXODU
D

WR

OLVWHQLQJ

%ULHI WKH RWKHU FUHZ PHPEHU ZKHQ KHVKH


UHWXUQV

UHFRPPHQGDWLRQ

DWWHQWLRQ

PRPHQWDU\ DEVHQFH RI EDFNXS  DQG

RU

)/

7KLV

LQFUHDVHG

FRQILUPLQJ  UHDGLQJ EDFN EHFDXVH RI WKH

HVWDEOLVKHG DQG WKH DOWLPHWHU SRVLWLYHO\ VKRZV


WKH GHSDUWXUH IURP

*LYH

DQG

DQ\

DQ\

UHOHYDQW

FKDQJH

LQ

QHZ

WKH

$7&

FOHDUDQFH RU LQVWUXFWLRQV

KROGLQJ

SDWWHUQ

$OWLWXGHVHWWLQJ SURFHGXUHV

8VH RI WZR VHSDUDWH PHWKRGV IRU H[SUHVVLQJ


FHUWDLQ DOWLWXGHV RQH RQH WKRXVDQG IHHW WKDW

7KH IROORZLQJ WHFKQLTXHV VKRXOG EH FRQVLGHUHG IRU

LV HOHYHQ WKRXVDQG IHHW DQG

HQKDQFLQJ VWDQGDUG RSHUDWLQJ SURFHGXUHV 623V 


3UHFHGLQJ HDFK QXPEHU E\ WKH FRUUHVSRQGLQJ

IOLJKW SDUDPHWHU LH )/ KHDGLQJ VSHHG 


HJ GHVFHQG WR

)OLJKW /HYHO

FOHDUHG

WZR IRXU ]HUR

,I

GRXEW

H[LVWV

DERXW

DOWLWXGH

YDOXH

LPPHGLDWHO\

LQ

WKH

VHOHFWHG DOWLWXGH ZLQGRZ HYHQ EHIRUH UHDGEDFN

LQVWHDG RI GHVFHQG WR WZR IRXU ]HUR

:KHQ UHFHLYLQJ DQ DOWLWXGH FOHDUDQFH VHW WKH

LI GHHPHG PRUH VXLWDEOH GXH WR ZRUNORDG 

FOHDUDQFH

UHTXHVW

(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


7KH

IROORZLQJ

JXLGHOLQHV

DQG

VHFWRU PLQLPXP VDIH DOWLWXGH DQG

UHFRPPHQGDWLRQV

VKRXOG EH FRQVLGHUHG IRU RSWLPXP SULRULWL]DWLRQ RI


WDVNV DQG WDVN VKDULQJ

(QVXUH WKDW WKH FOHDUHG DOWLWXGH LV DERYH WKH

:KHQ XQGHU UDGDU YHFWRULQJ EH DZDUH RI WKH


DSSOLFDEOH PLQLPXP YHFWRULQJ DOWLWXGH IRU WKH
VHFWRU RU SRVLWLYHO\ UHTXHVW FRQILUPDWLRQ RI DQ

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

VWHULOH

FRFNSLW SHULRG 

$OWLWXGH 'HYLDWLRQV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&DOORXWV

)DLOLQJ WR TXHVWLRQ WKH XQXVXDO HJ ELDV RI


H[SHFWDWLRQ

8VH

VWDQGDUG

VLWXDWLRQDO

FDOOV

WR

DZDUHQHVV

LQFUHDVH
WR

WKH

HQVXUH

3)

DQ

HIIHFWLYH

EDFNXS DQG FKDOOHQJH DQG GHWHFW D SUHYLRXV HUURU

/HDYLQJ >@ IRU >@  ZKHQ D  IWPQ YHUWLFDO


KDV

EHHQ

HVWDEOLVKHG

DQG

6,'

RU

,QWHUSUHWLQJ VXEFRQVFLRXVO\ D UHTXHVW WR VORZ

$V

LQGLFDWHG

LQ

%ULHILQJ

1RWH

  $OWLPHWHU

6HWWLQJ 8VH RI UDGLR $OWLPHWHU

DOWLPHWHU

WKH WUDQVLWLRQ

DOWLWXGH  IOLJKW OHYHO FDQ EH HLWKHU

DQG

)L[HG IRU WKH ZKROH FRXQWU\ HJ )/  LQ WKH


8QLWHG 6WDWHV 

2QH WR JR 

2QH WKRXVDQG WR JR  RU

)L[HG IRU D JLYHQ DLUSRUW DV LQGLFDWHG LQ WKH


DSSURDFK FKDUW  RU

>@ IRU >@

ZKHQ ZLWKLQ  IW IURP WKH FOHDUHG DOWLWXGH RU

9DULDEOH DV D IXQFWLRQ RI 41+ DV LQGLFDWHG LQ


WKH $7,6 PHVVDJH 

)/

'HSHQGLQJ RQ WKH DLUOLQHV  IOLJKW FUHZV XVXDO DUHD

:KHQ ZLWKLQ  IW IURP WKH FOHDUHG DOWLWXGH  )/ RU

RI

IURP DQ DOWLWXGH UHVWULFWLRQ FRQVWUDLQW 

RSHUDWLRQ

FKDQJLQJ

IURP

IL[HG

WUDQVLWLRQ

DOWLWXGHV)/ WR YDULDEOH WUDQVLWLRQ DOWLWXGHV)/ PD\


UHVXOW LQ D SUHPDWXUH RU ODWH FKDQJH RI WKH DOWLPHWHU

3) VKRXOG FRQFHQWUDWH RQ LQVWUXPHQWV VFDQQLQJ

VHWWLQJ

RQH KHDG LQ  DQG

IDPLOLDU

7UDQVLWLRQ $OWLWXGH  /HYHO

LQGLFDWHV GHSDUWXUH IURP WKH SUHYLRXV DOWLWXGH

0RGHV FKDQJHV RQ )0$ DQG FKDQJHV RI WDUJHWV

VSHHG

RQ

)/ 

RQ 3)'1'

URXWLQH

GRZQ WR NW DV D FOHDUDQFH WR GHVFHQG WR

RQ WKH DVVLJQHG  FOHDUHG DOWLWXGH RU )/

RU

67$5 DQGRU

31)

$Q DOWLWXGH FRQVWUDLQW H[SUHVVHG LQ WHUPV RI )/ LQ

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

$OWLWXGH 'HYLDWLRQV LQ +ROGLQJ 3DWWHUQV

5HDGEDFN  KHDUEDFN HUURU EHFDXVH RI VLPLODU


VRXQGLQJ SKUDVHV

,Q
$EVHQFH RI VWDQGDUG SKUDVHRORJ\ 
,&$2  )/ RQH

8. 1$76

SDWWHUQV

FRQWUROOHUV

UHO\

RQ

SLORWV

WKH QHZ FOHDUHG DOWLWXGH

]HUR ]HUR  )/ RQH RQH ]HUR


)/ RQH KXQGUHG  )/ RQH RQH

KROGLQJ

PDLQWDLQHG WKH DVVLJQHG DOWLWXGH RU WR GHVFHQG WR

7KH RYHUOD\ RI DLUFUDIW WDJV RQ WKH FRQWUROOHUV UDGDU


GLVSOD\ GRHV QRW DOORZ WKH LPPHGLDWH GHWHFWLRQ RI DQ

]HUR

LPSHQGLQJ WUDIILF FRQIOLFW

0LQGVHW OHDQLQJ WR IRFXV RQO\ RQ RQH ]HUR DQG


WKXV

WR

PRUH

HDVLO\

&RQWUROOHUV

XQGHUVWDQG

WKHUHIRUH

DVVXPH

WKDW

FRUUHFWO\

UHDGEDFN FOHDUDQFH ZLOO EH FRUUHFWO\ FRPSOLHG ZLWK

  IHHW

$OWLWXGH 'HYLDWLRQV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

6HFRQGDU\

VXUYHLOODQFH

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

UDGDUV

665

7KH 7&$6 $&$6 LV DQ HIIHFWLYH VDIHJXDUG WR

SURYLGH

FRQIOLFW DOHUWV EXW QR UHVROXWLRQ DGYLVRU\ DFFXUDWH


DQG

FOHDU

SLORW

FRQWUROOHU

FRPPXQLFDWLRQV

PLQLPL]H WKH FRQVHTXHQFHV RI DOWLWXGH GHYLDWLRQV

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\

LPSRUWDQW ZKHQ LQ D KROGLQJ SDWWHUQ

'R QRW WDNH D FRPPXQLFDWLRQ LQWHQGHG IRU DQ

$VVRFLDWHG %ULHILQJ 1RWHV

3UHYHQW

7KH

PLQLPL]H

WKH

ULVN

RI

EORFNHG

WUDQVPLVVLRQ LQ FDVH RI VLPXOWDQHRXV UHDGEDFN


E\

WZR

DLUFUDIW

ZLWK

VLPLODU

FDOOVLJQV

IROORZLQJ

%ULHILQJ

1RWHV

UHIHU

WR

DOWLPHWHU

VHWWLQJ DQG DOWLWXGH LVVXHV

RU

VLPXOWDQHRXV WUDQVPLVVLRQV E\ WKH SLORW DQG WKH


FRQWUROOHU DQG

6HOHFWLQJ WKH FOHDUHG DOWLWXGH RU )/ RQ WKH )&8

RWKHU DLUFUDIW E\ FRQIXVLRQ RI VLPLODU FDOOVLJQV 




EDURPHWULF

DOWLPHWHUV DQG

7KH IROORZLQJ FRPPXQLFDWLRQ UXOHV DUH WKHUHIRUH

6HWWLQJ WKH DOWLPHWHUUHIHUHQFH RQ

$QQRXQFH OHDYLQJ >)/ RU DOWLWXGH@ RQO\ ZKHQ WKH

  2SHUDWLQJ 3KLORVRSK\  623V

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

  (IIHFWLYH 3LORW  &RQWUROOHU

YHUWLFDO VSHHG LQGLFDWRU DQG WKH DOWLPHWHU UHIOHFW


WKH GHSDUWXUH IURP WKH SUHYLRXV DOWLWXGH

6XPPDU\ RI .H\ 3RLQWV


$Q

DOWLWXGH

DZDUHQHVV

&RPPXQLFDWLRQV
SURJUDP

VKRXOG

EH

HPSKDVL]HG GXULQJ WUDQVLWLRQ DQG UHFXUUHQW WUDLQLQJ

  ,QWUDFUHZ &RPPXQLFDWLRQV


0DQDJLQJ ,QWHUUXSWLRQV DQG

DQG GXULQJ OLQH FKHFNV

'LVWUDFWLRQV

%ODPHIUHH UHSRUWLQJ RI DOWLWXGH GHYLDWLRQ HYHQWV


VKRXOG EH HQFRXUDJH WR EURDGHQ WKH XQGHUVWDQGLQJ
RI FDXVDO DQG FLUFXPVWDQWLDO

IDFWRUV

UHVXOWLQJ

LQ

  $OWLPHWHU 6HWWLQJ 8VH RI UDGLR


$OWLPHWHU

DOWLWXGH GHYLDWLRQV
7KH IROORZLQJ VDIHW\ NH\ SRLQWV VKRXOG EH SURPRWHG

$GKHUH

WR

WKH

SLORW

FRQWUROOHU

UHDGEDFN

KHDUEDFN SURFHVV FRPPXQLFDWLRQ FLUFOH 

&URVVFKHFN DQG EDFNXS HDFK RWKHU WR HQVXUH


WKDW WKH DOWLWXGH VHOHFWHG LV WKH FOHDUHG DOWLWXGH
UHFHLYHG

&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 

0RQLWRU

LQVWUXPHQWV

DQG

DXWRPDWLRQ

ZKHQ

UHDFKLQJ WKH FOHDUHG DOWLWXGH RU )/ DQG

,Q 90& DSSO\ WKH WHFKQLTXH RQH KHDG LQVLGH 


RQH KHDG RXW ZKHQ UHDFKLQJ WKH FOHDUHG DOWLWXGH
RU )/

$OWLWXGH 'HYLDWLRQV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ UHIHUHQFHV
x

,&$2 $QQH[  3DUWV , ,, DQG ,,, 6HFWLRQV ,, DQG

,,, DPHQGHG LQ  IRU GLVFRXUDJLQJ WKH XVH


RI WKUHHSRLQWHU DQG GUXPSRLQWHU DOWLPHWHUV

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV   F DQG $SSHQGL[ 


 

,&$2 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV


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

,&$2 3URFHGXUHV IRU $LU 1DYLJDWLRQ 6HUYLFHV


$LUFUDIW 2SHUDWLRQV 3$16236 'RF  
9ROXPH , )OLJKW 3URFHGXUHV 3RVW $PHQGPHQW
1R  DSSOLFDEOH  1RYHPEHU  

)$5  IRU PLQLPXP VDIH DOWLWXGH

)$5  IRU DOWLPHWHU VHWWLQJ

)$5



IRU

FODULILFDWLRQ

RI

$7&

FRP

PXQLFDWLRQV

)$5



DQG

)$5



IRU

7&$6

LQVWDOODWLRQ

)$$ 'UDIW $& ;; $OWLPHWHU (UURUV DW &ROG


7HPSHUDWXUHV

8.

&$$

&$3



IRU

UHTXLUHG

FULWHULD

LQ

DQQRXQFLQJ OHDYLQJ DQ DOWLWXGH RU )/

$OWLWXGH 'HYLDWLRQV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

'HVFHQWDQG$SSURDFK0DQDJHPHQW

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

'HVFHQWDQG$SSURDFK3URILOH0DQDJHPHQW

,QWURGXFWLRQ

'HVFHQW 3UHSDUDWLRQ

,QDGHTXDWH PDQDJHPHQW RI GHVFHQWDQGDSSURDFK


SURILOH DQGRU LQFRUUHFW PDQDJHPHQW RI DLUFUDIW
HQHUJ\ OHYHO GXULQJ DSSURDFK PD\ LQ
x /RVV RI YHUWLFDO VLWXDWLRQDO DZDUHQHVV DQGRU
x 5XVKHG DQG XQVWDELOL]HG DSSURDFKHV

(LWKHU VLWXDWLRQ LQFUHDVHV WKH ULVN RI DSSURDFKDQG


ODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH LQYROYLQJ &),7

6WDWLVWLFDO 'DWD

$SSUR[LPDWHO\   RI UXVKHG DQG XQVWDEOH


DSSURDFKHV LQYROYH DQ LQDGHTXDWH PDQDJHPHQW RI
WKH GHVFHQWDQGDSSURDFK SURILOH DQGRU DQ
LQFRUUHFW PDQDJHPHQW RI HQHUJ\ OHYHO WKLV LQFOXGHV
x %HLQJ KLJKHU RU ORZHU WKDQ WKH GHVLUHG YHUWLFDO
IOLJKW SDWK DQGRU
x %HLQJ IDVWHU RU VORZHU WKDQ WKH GHVLUHG VSHHG

,I D VWDQGDUG WHUPLQDO DUULYDO URXWH 67$5 LV


LQFOXGHG LQ WKH )06 IOLJKW SODQ EXW LV QRW
H[SHFWHG WR EH IORZQ EHFDXVH RI DQWLFLSDWHG
UDGDU YHFWRUV WKH 67$5 VKRXOG EH FKHFNHG
LH WKH WUDFNGLVWDQFH DOWLWXGH UHVWULFWLRQV
DQGRU VSHHG UHVWULFWLRQV DJDLQVW WKH
DQWLFLSDWHG URXWLQJ WR DGMXVW WKH WRSRIGHVFHQW
SRLQW DFFRUGLQJO\ DQG
:LQG IRUHFDVW VKRXOG EH HQWHUHG DV DYDLODEOH
RQ WKH DSSURSULDWH )06 SDJH DW ZD\SRLQWV
FORVH WR WKH WRSRIGHVFHQW SRLQW DQG DORQJ WKH
GHVFHQW SURILOH

'HVFHQW DQG $SSURDFK %ULHILQJ

,I D PLVVHGDSSURDFK LV LQFOXGHG LQ WKH )06


IOLJKW SODQ WKH PLVVHG DSSURDFK VKRXOG EH
UHYLHZHG DJDLQVW WKH DSSOLFDEOH DSSURDFK FKDUW

'HVFHQW ,QLWLDWLRQ

%HVW 3UDFWLFHV DQG *XLGHOLQHV

7R SUHYHQW GHOD\ LQ LQLWLDWLQJ WKH GHVFHQW DQG WR


HQVXUH DQ RSWLPXP PDQDJHPHQW RI GHVFHQWDQG
DSSURDFK SURILOH GHVFHQW SUHSDUDWLRQ DQG
DSSURDFKJRDURXQG EULHILQJV VKRXOG EH FRPSOHWHG
W\SLFDOO\  PLQXWHV EHIRUH WKH WRSRIGHVFHQW RU
ZKHQ ZLWKLQ 9+) FRPPXQLFDWLRQ UDQJH 

,I GHVFHQW LQLWLDWLRQ LV GHOD\HG E\ $7& UHGXFH


VSHHG DV DSSURSULDWH WR PLQLPL]H WKH LPSDFW RQ
WKH GHVFHQW SURILOH

1DYLJDWLRQ $FFXUDF\ &KHFN

,I )06 QDYLJDWLRQ DFFXUDF\ GRHV QRW PHHW WKH


DSSOLFDEOH FULWHULD IRU WHUPLQDO DUHD QDYLJDWLRQ RU
DSSURDFK QR GHVFHQW VKRXOG EH PDGH EHORZ
WKH 0($ RU EHORZ WKH VHFWRU 06$ ZLWKRXW SULRU
FRQILUPDWLRQ RI WKH DLUFUDIW SRVLWLRQ XVLQJ
QDYDLGV UDZGDWD

'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$ FDOORXW VKRXOG EH SHUIRUPHG E\ WKH 31) LI D IOLJKW

&RQFHSW RI QH[W WDUJHW DQG GHFLVLRQ JDWHV

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

$ SRVLWLRQ

DYDLODEOH LQVWUXPHQW DQG FKDUW UHIHUHQFHV

$Q DOWLWXGH

)06 YHUWLFDOGHYLDWLRQ LQGLFDWLRQ DV DSSOLFDEOH

$ FRQILJXUDWLRQ

1DYDLGV DQG LQVWUXPHQWV UDZGDWD DQG

$ VSHHG

&KDUWHG GHVFHQWDQGDSSURDFK SURILOH

$ YHUWLFDO VSHHG DV DSSOLFDEOH  DQG

:LQG

FRQGLWLRQV

PRQLWRUHG
$ SRZHU VHWWLQJ

KHDG

ZLQG

DQG

FORVHO\

WR

ZLQG

FKDQJHV

DQWLFLSDWH

FRPSRQHQW

RU

DQ\

LQFUHDVH

VKRXOG

EH

UHGXFWLRQ

LQ

LQ

WDLO

ZLQG

FRPSRQHQW DQG WR DGMXVW WKH IOLJKW SDWK SURILOH LQ D


WLPHO\ PDQQHU

,I LW LV DQWLFLSDWHG WKDW RQH RU PRUH HOHPHQW V RI WKH


QH[W WDUJHW ZLOO QRW EH PHW WKH UHTXLUHG FRUUHFWLYH

7KH GHVFHQW SURILOH PD\ EH PRQLWRUHG DQG DGMXVWHG

DFWLRQ V 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 

9LVLELOLW\ RU 595 DQG FHLOLQJ DV DSSURSULDWH 

EHWWHU

WKDQ

RU

HTXDO

WR

'LVWDQFHWRJR QP

DSSOLFDEOH

PLQLPXPV

)/  )3$ GHJUHHV

1RWH 

$LUFUDIW UHDGLQHVV

,Q WKH DERYH UXOH WKH )/ VKRXOG EH XQGHUVWRRG DV

SRVLWLRQ DOWLWXGH FRQILJXUDWLRQ DQG HQHUJ\

WKH

DQG

DLUFUDIW )/ DQG WKH DLUILHOG )/

&UHZ UHDGLQHVV

EULHILQJ

FRPSOHWHG

)/

GLIIHUHQFH

'

)/

EHWZHHQ

WKH

FXUUHQW

%HORZ   IW IO\LQJ DW  NW ,$6 WKH IROORZLQJ


DQG

DJUHHPHQW

JXLGHOLQHV PD\ EH XVHG WR FRQILUP WKH GHVFHQW

RQ

SURILOH DQG HQVXUH D VPRRWK WUDQVLWLRQ EHWZHHQ WKH

DSSURDFK FRQGLWLRQV

YDULRXV SKDVHV RI WKH DSSURDFK

7KH VWDELOL]DWLRQ KHLJKW VKRXOG FRQVWLWXWH D GHFLVLRQ

JDWH LI WKH UHTXLUHG FRQILJXUDWLRQ DQG VSHHG DUH QRW

 IW DERYH DLUSRUW HOHYDWLRQ DW  QP IURP


WRXFKGRZQ DQG

REWDLQHG RU LI WKH IOLJKW SDWK LV QRW VWDELOL]HG ZKHQ

UHDFKLQJ WKH VWDELOL]DWLRQ KHLJKW DQ LPPHGLDWH JR

 IW DERYH DLUSRUW HOHYDWLRQ DW  QP IURP


WRXFKGRZQ

DURXQG VKRXOG EH LQLWLDWHG

WR

DFFRXQW

VODWVIODSV H[WHQVLRQ 

'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW


3DJH 

IRU

GHFHOHUDWLRQ

DQG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

'HVFHQW 3URILOH $GMXVWPHQW5HFRYHU\

)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


GHVLUHG IOLJKW SDWK

5HYHUW

IURP

VHOHFWHG

'LVWUDFWLRQ

OHDGLQJ

WR

RU

UHVXOWLQJ

IURP

WZRKHDGVGRZQ VLWXDWLRQ
)06

YHUWLFDO

YHUWLFDO

PRGH

QDYLJDWLRQ

ZLWK

DQ

WR

DSSURSULDWH

)DLOXUH

WR

UHVROYH

DPELJXLWLHV

GRXEWV

RU

GLVDJUHHPHQWV

VSHHG WDUJHW

0DLQWDLQ D KLJK DLUVSHHG DV ORQJ DV SUDFWLFDO

([WHQG

EUDNHV

RQ

DV

DLUVSHHG

DOORZHG
DQG

E\

623V

IDLOXUH

WR

GHVFHQW

LQVWUXPHQW

PRQLWRU

ZLQG

8VH RI LQDSSURSULDWH WHFKQLTXH WR UHFRYHU WKH

LV QRW VXIILFLHQW RU

6XPPDU\ RI .H\ 3RLQWV

$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

FORVH

UHIHUHQFH

WR

GXULQJ OLQH FKHFNV DQG OLQH DXGLWV

LQVWUXPHQWV

WKURXJKRXW WKH WXUQ WR PRQLWRU DQG FRQWURO WKH


UDWH

RI

GHVFHQW

EDQN

DQJOH

DQG

SRVLWLRQ

ORVV RI FRQWURO

&),7 RU

RYHUVKRRW

RI

WKH

ORFDOL]HU

DQGRU

RI

WKH

GHVLUHG

GHVFHQW

IOLJKW

SDWK

FDQQRW

EH

&URVVFKHFN

DOO

GDWD

HQWULHV

E\

ERWK

LOOXVWUDWH WKH GHVFHQW DSSURDFK DQG JRDURXQG


EULHILQJV

&RQILUPDWLRQ

RI

)06

QDYLJDWLRQ

DFFXUDF\

EHIRUH GHFLGLQJ WKH XVH RI DXWRPDWLRQ LH XVH

$GYHUVH )DFWRUV DQG 7\SLFDO (UURUV

)06

PRGHV

RU

VHOHFWHG

PRGHV

IRU

WKH

GHVFHQW DQG DSSURDFK

7KH IROORZLQJ IDFWRUV DQG ZRUNLQJ HUURUV RIWHQ DUH

5HYLHZ

RI

WHUUDLQ

LQIRUPDWLRQ

DQG

RWKHU

DSSURDFK KD]DUGV DQG

REVHUYHG GXULQJ WUDQVLWLRQ DQG OLQH WUDLQLQJ


GHVFHQW

RI

8VH RI 3)' 1' DQG )06 &'8 WR VXSSRUW DQG

RI

UXVKHG

DSSURDFK

GXULQJ $SSURDFK IRU DGGLWLRQDO LQIRUPDWLRQ

WKHUHIRUH

DQG

FUHZPHPEHUV

5HIHU WR %ULHILQJ 1RWH   (QHUJ\ 0DQDJHPHQW

DQG

GHVFHQW

6WULFW DGKHUHQFH WR 623V IRU )06 VHWXS

UHFRYHUHG QRWLI\ $7& IRU WLPHO\ FRRUGLQDWLRQ

/DWH

RI

H[WHQGHG UXQZD\ FHQWHUOLQH


WKH

7LPHOLQHVV
SUHSDUDWLRQ

WR SUHYHQW

DQG

DSSURDFK SUHSDUDWLRQ DQG EULHILQJ UHVXOWLQJ LQ

*XLGHOLQHV IRU GHVFHQW SODQQLQJ PRQLWRULQJ DQG


DGMXVWPHQW

WKH RPLVVLRQ RI LPSRUWDQW LWHPV

HJ

WKH

DYDLODEOH

GHVFHQW SURILOH

([WHQG ODQGLQJ JHDU LI WKH XVH RI VSHHG EUDNHV

0DLQWDLQ

PRQLWRU

DOO

FRQILJXUDWLRQ

XQWLO VSHHG EUDNHV DUH UHWUDFWHG  RU

,I

HIIHFWLYHO\
XVLQJ

FRQGLWLRQV DQGRU ZLQG FKDQJHV  DQGRU

NHHSLQJ RQH KDQG RQ WKH VSHHG EUDNHV KDQGOH

WR

SURJUHVV
UHIHUHQFHV

VSHHG

GHSHQGLQJ

)DLOXUH

)DLOXUH WR FURVVFKHFN )06 GDWD HQWULHV

'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


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

  6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

  2SHUDWLRQV *ROGHQ 5XOHV

  (QHUJ\ 0DQDJHPHQW GXULQJ


$SSURDFK

  7HUUDLQ $ZDUHQHVV

  %HLQJ 3UHSDUHG IRU *RDURXQG

  )O\LQJ 6WDELOL]HG $SSURDFKHV

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$HURSODQHV

$SSHQGL[

$LU

7UDQVSRUW

&RQWHQWV

RI

2SHUDWLRQV 0DQXDOV  

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

2SHUDWLRQV

3$16236

'RF

 

9ROXPH , )OLJKW SURFHGXUHV

)$$

$&



6WDQGDUG

2SHUDWLQJ

3URFHGXUHV IRU )OLJKWGHFN &UHZ 0HPEHUV

-$5236  DQG DVVRFLDWHG $SSHQGL[ $




2SHUDWLRQV

0DQXDOV

VWUXFWXUH

DQG

FRQWHQWV

'HVFHQW DQG $SSURDFK 3URILOH 0DQDJHPHQW


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

(QHUJ\0DQDJHPHQWGXULQJ$SSURDFK
6WDWLVWLFDO 'DWD

,QWURGXFWLRQ

,QDELOLW\ WR DVVHVV RU PDQDJH WKH DLUFUDIW HQHUJ\


OHYHO GXULQJ WKH DSSURDFK RIWHQ LV FLWHG DV D FDXVDO
IDFWRU LQ XQVWDELOL]HG DSSURDFKHV
(LWKHU D GHILFLW RI HQHUJ\ EHLQJ ORZ DQGRU VORZ RU
DQ H[FHVV RI HQHUJ\ EHLQJ KLJK DQGRU IDVW PD\
UHVXOW LQ DSSURDFKDQGODQGLQJ DFFLGHQWV VXFK DV
x /RVV RI FRQWURO
x /DQGLQJ VKRUW
x +DUG ODQGLQJ
x 7DLO VWULNH
x 5XQZD\ H[FXUVLRQ DQGRU
x 5XQZD\ RYHUUXQ

$SSUR[LPDWHO\   RI UXVKHG DQG XQVWDEOH


DSSURDFKHV LQYROYH DQ LQFRUUHFW PDQDJHPHQW RI WKH
DLUFUDIW HQHUJ\ OHYHO UHVXOWLQJ LQ DQ H[FHVV RU GHILFLW
RI HQHUJ\ DV IROORZV
x %HLQJ VORZ DQGRU ORZ RQ DSSURDFK    RI
HYHQWV RU
x %HLQJ IDVW DQGRU KLJK RQ DSSURDFK   RI
HYHQWV
$LUFUDIW (QHUJ\ /HYHO

7KH OHYHO RI HQHUJ\ RI DQ DLUFUDIW LV D IXQFWLRQ RI WKH


IROORZLQJ SULPDU\ IOLJKW SDUDPHWHUV DQG RI WKHLU UDWH
RI FKDQJH WUHQG 
x $LUVSHHG DQG VSHHG WUHQG
x $OWLWXGH DQG YHUWLFDO VSHHG RU IOLJKW SDWK DQJOH 
x 'UDJ LH GUDJ FDXVHG E\ VSHHG EUDNHV
VODWVIODSV DQGRU ODQGLQJ JHDU  DQG
x 7KUXVW OHYHO

7KLV %ULHILQJ 1RWH SURYLGHV EDFNJURXQG LQIRUPDWLRQ


DQG RSHUDWLRQDO JXLGHOLQHV IRU D EHWWHU
XQGHUVWDQGLQJ
x (QHUJ\ PDQDJHPHQW GXULQJ LQWHUPHGLDWH
DSSURDFK
 +RZ IDVW FDQ \RX IO\ GRZQ WR WKH )$) RU
RXWHU PDUNHU "
x (QHUJ\ PDQDJHPHQW GXULQJ ILQDO DSSURDFK
 +D]DUGV DVVRFLDWHG ZLWK IO\LQJ RQ WKH
EDFNVLGH RI WKH SRZHU FXUYH DV GHILQHG E\
)LJXUH  
5HIHU DOVR WR %ULHILQJ 1RWH


2QH RI WKH WDVNV RI WKH SLORW LV WR FRQWURO DQG PRQLWRU


WKH HQHUJ\ OHYHO RI WKH DLUFUDIW XVLQJ DOO DYDLODEOH
FXHV LQ RUGHU WR
x 0DLQWDLQ WKH DLUFUDIW DW WKH DSSURSULDWH HQHUJ\
OHYHO IRU WKH IOLJKW SKDVH DQG FRQILJXUDWLRQ
 IOLJKW SDWK VSHHG DQG WKUXVW RU
x 5HFRYHU WKH DLUFUDIW IURP D ORZ HQHUJ\ RU KLJK
HQHUJ\ VLWXDWLRQ LH IURP
 EHLQJ WRR VORZ DQGRU WRR ORZ RU
 EHLQJ WRR IDVW DQGRU WRR KLJK

 7KH )LQDO

$SSURDFK 6SHHG

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

&RQWUROOLQJ

WKH

DLUFUDIW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

DQRWKHU
$XWRSLORW

DQG

IOLJKW

GLUHFWRU

PRGHV

DLUFUDIW

 IW DERYH DLUILHOG HOHYDWLRQ LQ ,0&

 IW DERYH DLUILHOG HOHYDWLRQ LQ 90&

$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
7KLV DOORZV WLPH EHIRUH UHDFKLQJ WKH DSSOLFDEOH

*RLQJ 'RZQ DQG 6ORZLQJ 'RZQ 

VWDELOL]DWLRQ KHLJKW IRU

+RZ )DVW &DQ \RX )O\ 'RZQ WR WKH 0DUNHU"


$

VWXG\

E\

WKH

PDLQWDLQLQJ

86

KLJK

176%

DLUVSHHG

DFNQRZOHGJHV
GRZQ

WR

WKH

WKDW
RXWHU

6WDELOL]LQJ WKH ILQDO DSSURDFK VSHHG DQG

&RPSOHWLQJ WKH ODQGLQJ FKHFNOLVW

PDUNHU 20 GRHV QRW IDYRU WKH FDSWXUH RI WKH


$LUFUDIW GHFHOHUDWLRQ FKDUDFWHULVWLFV

JOLGHVORSH EHDP E\ WKH DXWRSLORW RU WKH DLUFUDIW


VWDELOL]DWLRQ DW WKH GHILQHG VWDELOL]DWLRQ KHLJKW

$OWKRXJK

GHFHOHUDWLRQ

FKDUDFWHULVWLFV

ODUJHO\

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

TXLFN DVVHVVPHQW DQG PDQDJHPHQW RI WKH DLUFUDIW

7KH

VWXG\
20

FRQFOXGHV
PDLQO\

WKDW

LQ

QR

VSHHG

LQVWUXPHQW

PHWHRURORJLFDO

GHFHOHUDWLRQ FDSDELOLW\

FRQGLWLRQV ,0& 

1HYHUWKHOHVV $7& UHTXHVWV IRU PDLQWDLQLQJ D KLJK

'HFHOHUDWLRQ LQ OHYHO IOLJKW

DLUVSHHG GRZQ WR WKH PDUNHU  NW WR  NW ,$6


W\SLFDOO\ DUH IUHTXHQW DW KLJKGHQVLW\ DLUSRUWV WR

LQFUHDVH WKH ODQGLQJ UDWH

7KH SXUSRVH RI WKH IROORZLQJ SDUW LV WR

 WR  NWSHUQP

GXULQJ H[WHQVLRQ RI JHDU DQG ODQGLQJ IODSV

5HFDOO WKH GHILQLWLRQ RI VWDELOL]DWLRQ KHLJKWV

,OOXVWUDWH WKH DLUFUDIW GHFHOHUDWLRQ FKDUDFWHULVWLFV

3URYLGH
PD[LPXP

JXLGHOLQHV
VSHHG

IRU

ZKLFK

DVVHVVPHQW

RI

WKH

UHDVRQDEO\

FDQ

EH

 WR  NWSHUQP

'HFHOHUDWLRQ RQ D GHJUHH JOLGH SDWK

LQ OHYHO IOLJKW DQG RQ D GHJUHH JOLGH SDWK DQG

ZLWK DSSURDFK IODSV H[WHQGHG

ZLWK DSSURDFK IODSV DQG JHDU GRZQ GXULQJ


H[WHQVLRQ RI ODQGLQJ IODSV

 WR  NW SHU QP

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

WKH GHVLUHG VWDELOL]DWLRQ KHLJKW

VSHHG

IRU

ILQDO

DSSURDFK

JURXQG

VSHHG RI  NW

'HFHOHUDWLQJ RQ D GHJUHH JOLGH SDWK LQ FOHDQ


FRQILJXUDWLRQ XVXDOO\ LV QRW SRVVLEOH

6WDELOL]DWLRQ KHLJKW

:KHQ FDSWXULQJ WKH JOLGH VORSH ZLWK RQO\ VODWV

7KH GHILQLWLRQ DQG FULWHULD IRU D VWDELOL]HG DSSURDFK


DUH GHILQHG LQ %ULHILQJ 1RWH

 

H[WHQGHG LH ZLWK QR IODSV  W\SLFDOO\ IW


DQG

)O\LQJ 6WDELOL]HG

QP

DUH

IORZQ

ZKLOH

HVWDEOLVKLQJ

WKH

ODQGLQJ FRQILJXUDWLRQ DQG VWDELOL]LQJ DW WKH WDUJHW

$SSURDFKHV

ILQDO DSSURDFK VSHHG

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

6SHHGEUDNHV

PD\

EH

XVHG

WR

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

DFKLHYH

IDVWHU

00

GHFHOHUDWLRQ DV DOORZHG IRU WKH DLUFUDIW W\SH

8VXDOO\

WKH

XVH

RI

VSHHGEUDNHV

LV

20

'HFHOHUDWLRQ
6HJPHQW

QRW

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 )$)

)LJXUH

LOOXVWUDWHV

 IW

 IW
WKH

DLUFUDIW

GHFHOHUDWLRQ





9 $33  NW

FDSDELOLW\ DQG WKH PD[LPXP SRVVLEOH VSHHG DW WKH

9 0$; DW 20

QP

 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

,0& VWDELOL]DWLRQ KHLJKW  IW DERYH DLUILHOG


HOHYDWLRQ  DQG

)LQDO DSSURDFK VSHHG 9

$33

:KHQHYHU EHLQJ UHTXLUHG WR PDLQWDLQ D KLJK VSHHG

 NW

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

$YRLGLQJ WKH %DFN 6LGH RI WKH 3RZHU &XUYH

HOHYDWLRQ   QP LV

 NWSHUQP [    QP

'XULQJ DQ XQVWDEOH DSSURDFK WKH DLUVSHHG RU WKH

 NW

WKUXVW VHWWLQJ RIWHQ LV REVHUYHG WR GHYLDWH IURP WKH


WDUJHW YDOXHV

,Q RUGHU WR EH VWDELOL]HG DW  NW DW  DERYH

DLUILHOG HOHYDWLRQ WKH PD[LPXP VSHHG WKDW FDQ EH


DFFHSWHG

DQG

PDLQWDLQHG

GRZQ

WR

WKH

20

LV

WKHUHIRUH

x
 NW   NW

$LUVSHHG

LV

VSHHG 9

$33 

WKH

WDUJHW

ILQDO

DSSURDFK

DQGRU

7KUXVW LV UHGXFHG DQG PDLQWDLQHG DW LGOH

 NW

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 

EHORZ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH ULJKW VLGH RI WKH SRZHU FXUYH LV WKH QRUPDO ]RQH

7KUXVWUHTXLUHGWRIO\ FXUYH

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


WKH WKUXVWUHTXLUHGWRIO\ DQG KHQFH EULQJV EDFN

*LYHQ JURVVZHLJKW



*LYHQ SUHVVXUH DOWLWXGH

WKH DLUFUDIW WR WKH LQLWLDO DLUVSHHG

7KUXVW UHTXLUHG  LQ 

*LYHQ IOLJK SDWK


2Q WKH EDFNVLGH RI WKH SRZHU FXUYH WKH WKUXVW



EDODQFH LV VXFK WKDW DW JLYHQ WKUXVW OHYHO DQ\


WHQGHQF\



6WDEOH




GHFHOHUDWH

LQFUHDVHV

WKH

WKUXVW

GHFHOHUDWH

8QVWDEOH



WR

UHTXLUHGWRIO\ DQG KHQFH DPSOLILHV WKH WHQGHQF\ WR

7KUXVW IRU 9

$33

&RQYHUVHO\ DQ\ WHQGHQF\ WR DFFHOHUDWH GHFUHDVHV


WKH WKUXVWUHTXLUHGWRIO\ DQG KHQFH DPSOLILHV WKH



          
9 $33 9 PLQLPXP WKUXVW
$LUVSHHG NW

WHQGHQF\ WR DFFHOHUDWH

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

$ SRLQW RI PLQLPXP WKUXVWUHTXLUHGWRIO\

$ SDUW ORFDWHG ULJKW RI WKLV SRLQW

SDUW

ORFDWHG

OHIW

RI

WKLV

,I WKH DLUVSHHG LV DOORZHG WR GHFUHDVH EHORZ WKH ILQDO


DSSURDFK VSHHG PRUH WKUXVW LV UHTXLUHG WR PDLQWDLQ

SRLQW

FDOOHG

WKH GHVLUHG IOLJKW SDWK DQGRU WR UHJDLQ WKH WDUJHW

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

5HSUHVHQWV WKH FOLPE RU DFFHOHUDWLRQ FDSDELOLW\

LOOXVWUDWHG LQ )LJXUH  )LJXUH  DQG )LJXUH  

LI WKH DYDLODEOHWKUXVW H[FHHGV WKH UHTXLUHG


WKUXVW  RU

,QGLFDWHV WKDW VSHHG DQGRU IOLJKW SDWK FDQQRW EH


PDLQWDLQHG LI WKH UHTXLUHGWKUXVW H[FHHGV WKH
DYDLODEOHWKUXVW 

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

(QJLQH DFFHOHUDWLRQ FKDUDFWHULVWLFV

7KH DLUFUDIW FHUWLILFDWLRQ )$5 3DUW  HQVXUHV


WKDW WKH WKUXVW DFKLHYHG DIWHU  VHFRQGV VWDUWLQJ
IURP IOLJKWDSSURDFK LGOH DOORZV D PLQLPXP FOLPE
JUDGLHQW RI   IRU JRDURXQG

:KHQ IO\LQJ WKH ILQDO DSSURDFK VHJPHQW ZLWK WKH


WKUXVW VHW DQG PDLQWDLQHG DW LGOH DSSURDFK LGOH  WKH
SLORW VKRXOG EH DZDUH RI WKH DFFHOHUDWLRQ
FKDUDFWHULVWLFV RI MHW HQJLQHV DV LOOXVWUDWHG EHORZ
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







$SSURDFK
LGOH 







 VHFRQGV )$5 





7LPH VHFRQGV

7LPH VHFRQGV

)LJXUH 

)LJXUH 

&HUWLILHG 7KUXVW 5HVSRQVH 7\SLFDO

(QJLQH 5HVSRQVH 6FDWWHU 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

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 



$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

*RDURXQG IURP ORZ VSHHGORZ WKUXVW

7DEOH  LQGLFDWHV WKH WKUXVW UHTXLUHG LQ  RI WKH


72*$ WKUXVW GXULQJ WKH WUDQVLWLRQ IURP D VWDELOL]HG
DSSURDFK WR D JRDURXQG
3KDVH

 RI 72*$ 7KUXVW

6WDELOL]HG DSSURDFK
GHJUHH JOLGH SDWK  9 $33

 

$UUHVWLQJ DOWLWXGH ORVV

 

3RVLWLYH &OLPE

)LJXUH  LOOXVWUDWHV WKH FRQVHTXHQFHV DVVRFLDWHG


ZLWK IO\LQJ DQ DSSURDFK ZLWK
x 6SHHG EHORZ WKH WDUJHW ILQDO DSSURDFK VSHHG
9 $33  DQGRU
x 7KUXVW QRW VWDELOL]HG RU VHW DQG PDLQWDLQHG DW
LGOH
,Q FDVH RI JRDURXQG WKH LQLWLDO DOWLWXGH ORVV DQG WKH
WLPH UHTXLUHG IRU UHFRYHULQJ WKH LQLWLDO DOWLWXGH DUH
LQFUHDVHG LI DLUVSHHG LV ORZHU WKDQ WKH ILQDO
DSSURDFK VSHHG DQGRU LI WKUXVW LV QRW VWDELOL]HG RU
VHW DW LGOH
$OWLWXGH /RVV LQ *RDURXQG

!  

/DQGLQJ &RQILJXUDWLRQ



7DEOH 
7KUXVW 5HTXLUHG GXULQJ *$ ,QLWLDWLRQ

6WDELOL]HG WKUXVW

$OWLWXGH /RVV


LQ IHHW IURP JRDURXQG LQLWLDWLRQ

7DEOH  DQG )LJXUH  LOOXVWUDWH WKH LPSRUWDQFH RI


EHLQJ VWDELOL]HG RQ VSHHG DQG RQ WKUXVW ZKHQ
LQLWLDWLQJ D JRDURXQG

$33 


9 $33 
7KUXVW GHFUHDVLQJ




9


9

$33

$33  NW

,GOH

,GOH






7LPH VHFRQGV

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

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

6XPPDU\ RI .H\ 3RLQWV


$

GHFHOHUDWLRQ

EHORZ

WKH

ILQDO

DSSURDFK

VSHHG

VKRXOG EH DFFHSWHG RQO\ LQ WKH IROORZLQJ FDVHV

*3:6 WHUUDLQ DYRLGDQFH PDQHXYHU

&ROOLVLRQ DYRLGDQFH PDQHXYHU DQG

: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

$VVRFLDWHG %ULHILQJ 1RWHV


7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG
DORQJ ZLWK WKH DERYH LQIRUPDWLRQ IRU D FRPSOHWH
RYHUYLHZ RI WKH DSSURDFK PDQDJHPHQW

  %HLQJ 3UHSDUHG IRU *RDURXQG

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  )O\LQJ &RQVWDQWDQJOH 1RQSUHFLVLRQ


$SSURDFKHV

 7KH )LQDO $SSURDFK 6SHHG

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV $SSHQGL[   

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

2SHUDWLRQV

3$16236

'RF

 

6DIHW\

%RDUG

9ROXPH , )OLJKW 3URFHGXUHV

2WKHU 5HIHUHQFHV
x

86

1DWLRQDO

176%

7UDQVSRUWDWLRQ

5HSRUW

176%$$6

6SHFLDO

6WXG\ )OLJKW &UHZ &RRUGLQDWLRQ 3URFHGXUH


$LU

&DUULHU

,QVWUXPHQW

/DQGLQJ

LQ

6\VWHP

$SSURDFK $FFLGHQWV

(QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

$SSURDFK+D]DUGV$ZDUHQHVV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

$SSURDFK+D]DUGV$ZDUHQHVV*HQHUDO

,QWURGXFWLRQ

)DFWRUV WKDW PD\ FRQWULEXWH WR DSSURDFKDQG


ODQGLQJ DFFLGHQWV LQFOXGH IOLJKW RYHU KLOO\ WHUUDLQ
UHGXFHG YLVLELOLW\ YLVXDO LOOXVLRQV DGYHUVH ZLQGV
FRQWDPLQDWHG UXQZD\V DQGRU OLPLWHG DSSURDFK DLGV
)OLJKW FUHZV VKRXOG EH DZDUH RI WKH FRPSRXQGLQJ
QDWXUH RI WKHVH KD]DUGV GXULQJ DSSURDFK DQG
ODQGLQJ
6WDWLVWLFDO GDWD

$SSURDFKDQGODQGLQJ LV WKH PRVW KD]DUGRXV SKDVH


RI DQ\ IOLJKW DV LOOXVWUDWHG E\ WKH IROORZLQJ GDWD
x 2YHU WKH SDVW  \HDUV DSSURDFKDQGODQGLQJ
DFFLGHQWV DFFRXQWHG IRU   RI WRWDO KXOO
ORVVHV
7KLV VWDWLVWLF GRHV QRW VKRZ D GRZQZDUG WUHQG
x 7KH IOLJKW VHJPHQW IURP WKH RXWHU PDUNHU WR WKH
UXQZD\ WKUHVKROG DYHUDJHV RQO\   RI IOLJKW
WLPH EXW DFFRXQWV IRU   RI KXOO ORVVHV
7DEOH  7DEOH  DQG 7DEOH  LOOXVWUDWH WKH
UHVSHFWLYH FRQWULEXWLRQV RI WKH IDFWRUV LQYROYHG LQ
x $OO DSSURDFKDQGODQGLQJ DFFLGHQWV
x &),7 HYHQWV DQG
x 5XQZD\ H[FXUVLRQV DQG RYHUUXQV

)DFWRU

 RI (YHQWV

1LJKW WLPH
,0&
'DUNQHVV RU WZLOLJKW
1RQSUHFLVLRQ DSSURDFK RU YLVXDO
DSSURDFK
3UHFLSLWDWLRQ UDLQ RU VQRZ
$EVHQFH RI UDGDU VHUYLFH
$GYHUVH ZLQG KLJK FURVVZLQG
WDLO ZLQG RU ZLQG VKHDU
$EVHQFH RI *3:6 RU UDGLR
DOWLPHWHU
$EVHQFH RI OHWGRZQ QDYDLG
DSSURDFKUXQZD\ OLJKWLQJ RU 9$6,
 3$3,
6SDWLDO GLVRULHQWDWLRQ RU YLVXDO
LOOXVLRQV
5XQZD\ FRQWDPLQDWLRQ VWDQGLQJ
ZDWHU VOXVK VQRZ RU LFH

 
 
 
 
 
 
 
 
 
 
 

7DEOH 
$OO $SSURDFKDQG/DQGLQJ (YHQWV

6RXUFH )OLJKW 6DIHW\ )RXQGDWLRQ $/$5 7DVN )RUFH

$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

)DFWRU

/RZ YLVLELOLW\
+LOO\ RU PRXQWDLQRXV WHUUDLQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)OLJKW &UHZ

 RI (YHQWV

 
 

7DEOH 
&),7 (YHQWV
)DFWRU

/RZ YLVLELOLW\
$GYHUVH ZLQG FRQGLWLRQV

x
x

 RI (YHQWV

([SHFWHG $SSURDFK
x

 
 

x
x

7DEOH 
5XQZD\ ([FXUVLRQV DQG 2YHUUXQV

6WHSGRZQ QRQSUHFLVLRQ DSSURDFK RU FLUFOLQJ


DSSURDFK ZLWK QR 9$6,  3$3,
9LVXDO DSSURDFK LQ GDUNQHVV DQGRU
$QWLFLSDWHG ODVWPLQXWH UXQZD\ FKDQJH

$SSURDFK &KDUWV
x

$ZDUHQHVV 3URJUDP 2XWOLQH

$ FRPSDQ\ DZDUHQHVV SURJUDP RQ DSSURDFKDQG


ODQGLQJ KD]DUGV VKRXOG UHYLHZ DQG GLVFXVV WKH
IROORZLQJ IDFWRUV WKDW PD\ FRQWULEXWH WR DSSURDFK
DQGODQGLQJ DFFLGHQWV
:KHQ SUHSDULQJ DQG EULHILQJ DQ DSSURDFK WKHVH
IDFWRUV PD\ EH HLWKHU
x .QRZQ IURP WKH FUHZ E\ PHDQV RI 127$0V
GLVSDWFKHUV EULHILQJ $7,6 HWF DQG WKXV PD\
EH EULHIHG DQG DFFRXQWHG IRU RU
x 8QNQRZQ DQG WKXV EH GLVFRYHUHG DV WKH
DSSURDFKDQGODQGLQJ SURJUHVVHV

$EVHQFH RI D SXEOLVKHG 67$5


0LVVHGDSSURDFK SRVVLEOH FRQIOLFW ZLWK WDNHRII
RQ LQWHUVHFWLQJ UXQZD\V DQGRU
,QFRUUHFW RU PLVVLQJ LQIRUPDWLRQ

$LUSRUW ,QIRUPDWLRQ 6HUYLFHV


x
x
x
x
x

$LUFUDIW (TXLSPHQW
x

)DWLJXH UHGXFHG DZDUHQHVV


 /RQJ GXW\ WLPH
/RQJKDXO RSHUDWLRQ RU
6KRUWKDXO RU PHGLXPKDXO  PXOWLSOH
OHJV RSHUDWLRQ
8QIDPLOLDU DLUSRUW DQGRU
8QIDPLOLDU LQVWUXPHQW RU YLVXDO DSSURDFK
SURFHGXUH

8VH RU DEVHQFH RI WKH IROORZLQJ VDIHW\


HQKDQFLQJ HTXLSPHQW
 *3:6
 7$:6
 7&$6
 :LQG VKHDU ZDUQLQJ DQG JXLGDQFH DQGRU
 3UHGLFWLYH ZLQGVKHDU V\VWHP

,QDFFXUDWH 7$) LQIRUPDWLRQ


$EVHQFH RI FXUUHQW ZHDWKHU UHSRUWV
$EVHQFH RI 92/0(7
$EVHQFH RI $7,6 RU RI (QJOLVK YHUVLRQ RI $7,6
PHVVDJH  DQGRU
,QDFFXUDWH RU RXWGDWHG $7,6 LQIRUPDWLRQ
DEVHQFH RI UHJXODU $7,6 XSGDWH ZKHQ
UHTXLUHG 

$LUSRUW $LU 7UDIILF &RQWURO 6HUYLFHV


x
x

$EVHQFH RU SULPDU\ DQGRU VHFRQGDU\


VXUYHLOODQFH UDGDU
,QDGHTXDWH RU LQHIIHFWLYH UDGDU YHFWRULQJ
SUDFWLFHV

$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,QDGHTXDWH RU QRQVWDQGDUG DLU WUDIILF FRQWURO

,QDGHTXDWH DLU WUDIILF IORZ PDQDJHPHQW

0L[LQJ RI ,)5 DQG 9)5 WUDIILFV

LH

DEVHQFH

RI

DLUSRUW

DUHDV 

x
x

FRQJHVWLRQ

FRQWUROOHU

1R

LOOXPLQDWLRQ

RI

ZLQG

VRFN

RU

ZLQG

7

DQGRU

)UHTXHQW XQFRQWUROOHG 9)5 WUDIILFV LQ DLUSRUW

)UHTXHQF\

DLUSRUW

DQLPDOV WR DFFHVV WR UXQZD\ RU PDQHXYHULQJ

YLFLQLW\

8QVHFXUHG

SHULPHWHU IHQFHV DOORZLQJ YHKLFOHV SHUVRQV RU

SURFHGXUHV

)DGHG

SDLQWLQJ

RI

UXQZD\

DQGRU

WD[LZD\V

PDUNLQJV

RYHUORDG

FDXVHG E\ KLJK GHQVLW\ WUDIILF RU E\ D VLQJOH


FRQWUROOHU

RSHUDWLQJ

WRZHU

DQG

JURXQG

IUHTXHQFLHV

7HUUDLQ

$EVHQFH RI DGHTXDWH 9+) FRYHUDJH LQ NQRZQ

,QDGHTXDWH FRRUGLQDWLRQ EHWZHHQ LQWHUQDWLRQDO

$EVHQFH

RI

RU

7RSRJUDSKLFDO

IHDWXUHV

UHTXLULQJ

XQXVXDO

SURFHGXUHV DQG UHGXFHG VDIHW\ PDUJLQV DQGRU

DQG GRPHVWLF ),5V

7UHHV RU PDQPDGH REVWDFOHV DQWHQQDV 


SHQHWUDWLQJ WKH REVWDFOH FOHDUDQFH OHYHO

),5 RU 70$ VHFWRUV

IDLOXUH

WR

XVH

ODQGOLQH

7HUUDLQ IHDWXUHV UHVXOWLQJ LQ *3:6 DFWLYDWLRQ


GXULQJ DSSURDFK

FRPPXQLFDWLRQV EHWZHHQ WZR FORVH DLUSRUWV


DQGRU

$EVHQFH RI (QJOLVK ODQJXDJH SURILFLHQF\ LQ

5HIHU

$7&

$ZDUHQHVV

FRPPXQLFDWLRQV

DQGRU

XVH

RI

QRQ

WR

%ULHILQJ

1RWH



7HUUDLQ

,OOXVLRQV

IRU H[SDQGHG LQIRUPDWLRQ

VWDQGDUG SKUDVHRORJ\

9LVXDO ,OOXVLRQV

$LUSRUW (TXLSPHQW
x

$EVHQFH RI  OLPLWHG  ORZ LQWHQVLW\ DSSURDFK


DQG UXQZD\ OLJKWLQJ RU SDUW RI LW 

1RQVWDQGDUG UXQZD\HGJH OLJKWV VSDFLQJ

$EVHQFH RI ,/6

REVWDFOHV

$LUSRUW HQYLURQPHQW EODFN KROH  

5XQZD\ HQYLURQPHQW DQGRU

:HDWKHU FRQGLWLRQV

5HIHU

RU

EHORZ

VSHFLILF

WR

%ULHILQJ

$ZDUHQHVV

,/6 XQXVDEOH EH\RQG D VSHFLILF SRLQW EHFDXVH


RI

1RWH



9LVXDO

,OOXVLRQV

IRU H[SDQGHG LQIRUPDWLRQ

DOWLWXGH

9LVLELOLW\

EHFDXVH RI DSSURDFK RYHU ZDWHU 

,/6 ZLWKRXW 20

,/6 ZLWKRXW 9$6,3$3, WR VXSSRUW WKH YLVXDO

'DUNQHVV ORZ YLVLELOLW\ UDLQ IRJ PLVW KD]H


ORZ OLJKWLQJ VPRNH 

VHJPHQW 

2IIVHW 925'0( DSSURDFK

:LQG FRQGLWLRQV

925'0( ZLWK LQRSHUDWLYH '0(

925 LQFRUUHFW FDOLEUDWLRQ

1'% NQRZQ DV XQUHOLDEOH LQ DGYHUVH ZHDWKHU

DQGRU

ZLQG FRQGLWLRQV
1RQSUHFLVLRQ

RU

FLUFOLQJ

DSSURDFK

ZLWK
5HIHU

DEVHQFH RI 9$6,  3$3,

.QRZQ IUHTXHQW ZLQG VKHDU RQ ILQDO DSSURDFK RI


VSHFLILF UXQZD\ XQGHU DGYHUVH ZHDWKHU DQG  RU

FRQGLWLRQV

6KLIWLQJ RU JXVW\ ZLQG FURVVZLQG RU WDLO ZLQG

9$6,3$3,

EHLQJ

LQFRUUHFWO\

FDOLEUDWHG

WR

%ULHILQJ

1RWH



$ZDUHQHVV IRU H[SDQGHG LQIRUPDWLRQ

RU

LQRSHUDWLYH

$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO


3DJH 

:LQG

6KHDU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5XQZD\ FRQGLWLRQ

'HFLVLRQPDNLQJ DQG &RXQWHUPHDVXUHV

:HW EXW NQRZQ DV VOLSSHU\ZKHQZHW

&RQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU VOXVK VQRZ

$ FRPSDQ\ DZDUHQHVV SURJUDP RQ DSSURDFKDQG


ODQGLQJ

RU LFH

x
x
x

5HGXFHG EUDNLQJ DFWLRQ

VWUHVV

FUHZ

WKH

IROORZLQJ

FRRUGLQDWLRQ

DQG

ZLWK

VWDQGDUG

SXEOLVKHG

RSHUDWLQJ

SURFHGXUHV

OLPLWDWLRQV

UHFRPPHQGDWLRQV

DQG

VSHFLILF
IO\LQJ

WHFKQLTXHV
,QVXIILFLHQW ZDWHU GUDLQDJH RU UXQZD\ VXUIDFH
OHDYLQJ

ZDWHU

SXGGOHV

DIWHU

UDLQ

$GMXVW DQG XVH WKH DSSURDFK DQG JRDURXQG


EULHILQJV WR KHLJKWHQ WKH IOLJKW FUHZ DZDUHQHVV
RI WKH VSHFLILF KD]DUGV RI WKH DSSURDFK DQG

8QGXODWHG VXUIDFH LQ WRXFKGRZQ ]RQH DUHD


$QWLFLSDWH DQG EH SUHSDUHG IRU WKH ZRUVW FDVH
LH H[SHFWLQJ WKH XQH[SHFWHG E\ DGRSWLQJ D

7D[LZD\V

:KDW LI " DWWLWXGH 

$EVHQFH RI KLJKVSHHGH[LW WD[LZD\V

3UHSDUH

RSWLRQV

WR

FRXQWHU

DSSURDFKDQG

ODQGLQJ KD]DUGV IRU H[DPSOH


$EVHQFH RI SDUDOOHO WD[LZD\ WKXV UHTXLULQJ EDFN

WUDFN RQ WKH DFWLYH UXQZD\ DQGRU

&RPSO\

RSHUDWLRQDO

VKRXOG

HIIHFWLYH

623V 

DQGRU

RI

GHFLVLRQPDNLQJ

+HDY\ UXEEHU GHSRVLW LQ WRXFKGRZQ ]RQH

FRQGLWLRQ

KD]DUGV

HOHPHQWV

5HTXHVW D SUHFLVLRQ DSSURDFK LQWR WKH ZLQG


ZKHQHYHU DYDLODEOH

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


x

$EVHQFH RI D GHILQHG 2$7 WKUHVKROG EHORZ

:DLW IRU EHWWHU FRQGLWLRQV IXHO SHUPLWWLQJ 


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

$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


'HGLFDWHG
H[SDQGHG

%ULHILQJ

1RWHV

LQIRUPDWLRQ

RQ

SURYLGH
WKH

VSHFLILF

IROORZLQJ

DQG

DSSURDFK

KD]DUGV

  7HUUDLQ $ZDUHQHVV

  9LVXDO ,OOXVLRQV $ZDUHQHVV

  :LQGVKHDU $ZDUHQHVV

  %HLQJ 3UHSDUHG WR *RDURXQG

  7HUUDLQ $YRLGDQFH 3XOOXS 0DQHXYHU

$VVRFLDWHG 'RFXPHQWV
7KH IROORZLQJ GRFXPHQWV SXEOLVKHG E\ WKH )OLJKW
6DIHW\ )RXQGDWLRQ VKRXOG EH FRQVLGHUHG DOVR ZKHQ
GHYHORSLQJ

FRPSDQ\

DZDUHQHVV

SURJUDP

RQ

DSSURDFKDQGODQGLQJ KD]DUGV

$SSURDFK DQG /DQGLQJ


7RRO&KHFNOLVW DQG

$SSURDFK DQG
3ODQQLQJ *XLGH

/DQGLQJ

5LVN

$ZDUHQHVV

5LVN

5HGXFWLRQ

$SSURDFK +D]DUGV $ZDUHQHVV *HQHUDO


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

7HUUDLQ$ZDUHQHVV:KHQDQG+RZ"

,QWURGXFWLRQ

7HUUDLQ DZDUHQHVV LV GHILQHG DV WKH FRPELQHG


DZDUHQHVV DQG NQRZOHGJH RI
x $LUFUDIW SRVLWLRQ
x $LUFUDIW DOWLWXGH
x $SSOLFDEOH PLQLPXP VDIH DOWLWXGH 06$ 
x 7HUUDLQ ORFDWLRQ DQG IHDWXUHV DQG
x 2WKHU KD]DUGV
:KHQ DQG KRZ WR EXLOG DQG PDLQWDLQ WHUUDLQ
DZDUHQHVV "
7KLV %ULHILQJ 1RWH SURYLGHV D VHW RI RSHUDWLRQDO
UHFRPPHQGDWLRQV DQG WUDLQLQJ JXLGHOLQHV WR
HVWDEOLVK DQG PDLQWDLQ WKH GHVLUHG OHYHO RI WHUUDLQ
DZDUHQHVV

)DFWRU

 RI (YHQWV

/RZ YLVLELOLW\
+LOO\ RU PRXQWDLQRXV WHUUDLQ
1RQSUHFLVLRQ DSSURDFK
$UHDV RI IODW WHUUDLQ
RIWHQ RQ UXQZD\ H[WHQGHG
FHQWHUOLQH DQG ZLWKLQ  QP RI
UXQZD\ WKUHVKROG

 
 
 
 

7DEOH 
7HUUDLQ )DFWRUV LQ &),7 (YHQWV

&),7 HYHQWV GXULQJ LQLWLDO  LQWHUPHGLDWH DSSURDFK RU


GXULQJ ILQDO DSSURDFK XVXDOO\ UHVXOW IURP D
SUHPDWXUH GHVFHQW EHORZ WKH LQLWLDODSSURDFK
PLQLPXPVDIHDOWLWXGH RU EHORZ WKH PLQLPXP
GHVFHQWDOWLWXGH 0'$ 

6WDWLVWLFDO GDWD

&),7 HYHQWV DFFRXQW IRU DSSUR[LPDWHO\  


RI DSSURDFKDQGODQGLQJ DFFLGHQWV EXW DUH WKH
OHDGLQJ FDXVH RI IDWDOLWLHV
7KH DEVHQFH RI DFTXLVLWLRQ RU WKH ORVV RI YLVXDO
UHIHUHQFHV LV WKH PRVW FRPPRQ FDXVDO IDFWRU LQ
&),7 DFFLGHQWV RFFXUULQJ GXULQJ DSSURDFKDQG
ODQGLQJ WKLV LQFOXGHV
x 'HVFHQGLQJ EHORZ WKH 0'$ + RU '$ + ZLWKRXW
DGHTXDWH YLVXDO UHIHUHQFHV RU ZLWK LQFRUUHFW
YLVXDO UHIHUHQFHV HJ D OLJKWHG DUHD LQ WKH
DLUSRUW YLFLQLW\ D WD[LZD\ RU DQ RWKHU UXQZD\  RU
x &RQWLQXLQJ WKH DSSURDFK DIWHU WKH ORVV RI YLVXDO
UHIHUHQFHV HJ YLVXDO UHIHUHQFHV ORVW EHFDXVH
RI D IDVW PRYLQJ UDLQVKRZHU RU IRJ SDWFK 

1DYLJDWLRQ DQG $OWLWXGH 'HYLDWLRQV

:KHQ UHIHUULQJ WR WHUUDLQ DZDUHQHVV WKH IROORZLQJ


GHILQLWLRQV QHHG WR EH NHSW LQ PLQG
1DYLJDWLRQ FRXUVH GHYLDWLRQ
x 2SHUDWLRQ RI DQ DLUFUDIW EH\RQG WKH FRXUVH
FOHDUDQFH LVVXHG E\ $7& RU EH\RQG WKH GHILQHG
DLUZD\ V\VWHP
$OWLWXGH GHYLDWLRQ
x 'HYLDWLRQ IURP WKH DVVLJQHG DOWLWXGH RU IOLJKW
OHYHO HTXDO WR RU JUHDWHU WKDQ  IW

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,QDGHTXDWH WHUUDLQ VHSDUDWLRQ

2SHUDWLRQV *ROGHQ 5XOHV UHIHU WR %ULHILQJ 1RWH


 2SHUDWLRQV *ROGHQ 5XOHV

$Q\ RSHUDWLRQ ZLWK D WHUUDLQ VHSDUDWLRQ RI OHVV


WKDQ  IW LQ GHVLJQDWHG PRXQWDLQRXV DUHDV RU

7KH

OHVV WKDQ  IW LQ DOO RWKHU DUHDV H[FHSW

ILUVW

JROGHQ

UXOH

VWDWHV

&RPPXQLFDWH DQG 0DQDJH

RWKHUZLVH DXWKRUL]HG DQG SURSHUO\ DVVLJQHG E\


)O\

1DYLJDWH

LQ WKDW RUGHU

1DYLJDWH FDQ EH GHILQHG E\ WKH IROORZLQJ WKUHH

$7& LQ WHUPLQDO DUHDV 

NQRZ ZKHUH VWDWHPHQWV


1DYLJDWLRQ

FRXUVH

GHYLDWLRQV

DQG

DOWLWXGH

GHYLDWLRQV XVXDOO\ DUH FDXVHG E\ PRQLWRULQJ HUURUV


DQG PD\ UHVXOW LQ LQDGHTXDWH WHUUDLQ VHSDUDWLRQ
0RQLWRULQJ

HUURUV

LQYROYH

WKH

FUHZ

LQDELOLW\

WR

PRQLWRU WKH DLUFUDIW WUDMHFWRU\ DQG LQVWUXPHQWV ZKLOH


SHUIRUPLQJ DXWRSLORW RU )06 HQWULHV RU ZKLOH EHLQJ
LQWHUUXSWHG RU GLVWUDFWHG
'HOD\HG

UHFRJQLWLRQ

RI

PRQLWRULQJ

HUURUV

.QRZ ZKHUH \RX DUH

.QRZ ZKHUH \RX VKRXOG EH DQG

.QRZ ZKHUH WKH WHUUDLQ DQG REVWDFOHV DUH

$SSURDFK DQG JRDURXQG EULHILQJV

$OWLPHWHU VHWWLQJ DQG FURVVFKHFN SURFHGXUHV

LV

HVWLPDWHG WR UHVXOW LQ WKH IROORZLQJ PHDQ GHYLDWLRQV

x
x

)&8
 IW LQ FDVH RI DOWLWXGH GHYLDWLRQ DQG

7KLV SDUDJUDSK SURYLGHV DQ RYHUYLHZ RI


WR

HQKDQFH

WHUUDLQ

OHYHO RI WHUUDLQ DZDUHQHVV


7KLV RYHUYLHZ LGHQWLILHV WKH PRVW LPSRUWDQW WHUUDLQ
DZDUHQHVVLWHPV LH &),7FULWLFDO LWHP 

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


623V

ZLQGRZ
DSSURSULDWH

HYHQ

EHIRUH

EHFDXVH

RI

WKDW

VHOHFWHG

DOWLWXGH

LV

FURVV

(QVXUH WKDW WKH FOHDUHG DOWLWXGH LV DERYH WKH

3RVLWLYHO\

FRQILUP

DQ\

DOWLWXGH

FOHDUDQFH

EH

DZDUH

RI

DSSOLFDEOH

PLQLPXP

VKRXOG

'HVFHQW SURILOH PDQDJHPHQW

(QHUJ\ PDQDJHPHQW

7HUUDLQ DZDUHQHVV

$SSURDFK KD]DUGV DZDUHQHVV

(OHPHQWV RI D VWDELOL]HG DSSURDFK DQG DSSURDFK

HPSKDVL]H WKH IROORZLQJ WHUUDLQDZDUHQHVVLWHPV

LI

YHFWRULQJ DOWLWXGH IRU WKH VHFWRU 

2SHUDWLRQDO UHFRPPHQGDWLRQV DQG WHFKQLTXHV

SURFHGXUHV

(QVXUH

RU

SURSRVHG WR HVWDEOLVK DQG PDLQWDLQ WKH GHVLUHG

RSHUDWLQJ

DOWLWXGH

EHORZ WKH 06$ ZKHQ XQGHU UDGDU YHFWRULQJ

WUDLQLQJ QDYLJDWLRQ FKDUWV  DQG

6WDQGDUG

FOHDUDQFH

DSSOLFDEOH PLQLPXP VDIH DOWLWXGH DQG

DZDUHQHVV HJ RSHUDWLRQV PDQXDOV WHFKQLFDO

DOWLWXGH

FKHFNHG E\ ERWK FUHZPHPEHUV

7HUUDLQ $ZDUHQHVV  :KHQ DQG +RZ "

DYDLODEOH

DQ

ZRUNORDG 

 QDXWLFDO PLOHV LQ FDVH RI FRXUVH GHYLDWLRQ

2SSRUWXQLWLHV

UHFHLYLQJ

UHDGEDFN

:KHQ

LPPHGLDWHO\ VHW WKH FOHDUHG DOWLWXGH LQ WKH

IURP WKH LQWHQGHG YHUWLFDO RU ODWHUDO IOLJKW SDWK

JDWHV

7DVN VKDULQJ DQG VWDQGDUG FDOOV IRU HIIHFWLYH

FURVV FKHFN DQG EDFNXS SDUWLFXODUO\ IRU PRGH

5HDGLQHVV DQG FRPPLWPHQW WR UHVSRQG WR D


*3:6  7$:6 DOHUW DQG

VHOHFWLRQV DQG WDUJHW HQWULHV

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

1RWH  

8VH RI UDGLR DOWLPHWHU


7KH VHWWLQJ RI WKH EDURDOWLPHWHU EXJ DQG UDGLR

&$7 ,, '$ RU &$7 , '$ FDQ EH VHW LQ UHDGLQHVV

DOWLPHWHU

IRU D UHYHUVLRQ WR &$7 , PLQLPD

'+

VKRXOG

EH

LQ

OLQH

ZLWK

WKH

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

9LVXDO

%DUR %XJ

5$ '+

0'$'$ RI

 IW

YRLFH

LQVWUXPHQW

&DOORXWV

1RWH 

DSSURDFK

DXWRPDWLFDOO\ JHQHUDWHG E\ D V\QWKHVL]HG

RU

D
0'$

'$

'$

,/6 &$7 ,,

1RWH 

,/6 &$7 ,,,

'$

ZLWK '+

1RWH 

,/6 &$7 ,,,

7'= DOWLWXGH

WR

WKH

DLUOLQH

5DGLR

$OWLPHWHU

$OLYH

VKRXOG

EH

UDGLR

DOWLPHWHU

DFWLYDWLRQ

DW

 IW $*/
7KH

5$

UHDGLQJ

LQVWUXPHQW

1RWH 

,/6 &$7 , 5$

FDOORXW

WKH

 IW

1R 5$

WDLORUHG

DQQRXQFHG E\ WKH ILUVW FUHZPHPEHU REVHUYLQJ

 IW

1RWH 
,/6 &$7 ,

EH

7R HQKDQFH WKH IOLJKW FUHZV WHUUDLQ DZDUHQHVV

 IW $$/

1RQ,/6

VKRXOG

RSHUDWLQJ SROLF\ DQG WR WKH W\SH RI DSSURDFK

VFDQ

VKRXOG
IRU

EH

WKH

LQFOXGHG

UHPDLQGHU

LQ

WKH

RI

WKH

DSSURDFK

5$ '+

7UDLQLQJ
$OWLWXGH $ZDUHQHVV 3URJUDP

5$ '+

7KH

LPSOHPHQWDWLRQ

RI

DQ

DOWLWXGH

DZDUHQHVV

SURJUDP E\ VHYHUDO DLUOLQHV KDV UHGXFHG VLJQLILFDQWO\


WKH QXPEHU RI DOWLWXGH GHYLDWLRQV
$OHUW KHLJKW

$Q DOWLWXGH DZDUHQHVV SURJUDP FDQ EH GHYHORSHG

QR '+

EDVHG

RQ

WKH

FRQWHQWV

RI

WKH

%ULHILQJ

1RWHV

 $OWLPHWHU 6HWWLQJ 8VH RI 5DGLR $OWLPHWHU

DQG  $OWLWXGH 'HYLDWLRQV

7DEOH 
6HWWLQJ RI %DUR $OWLPHWHU %XJ DQG 5DGLR $OWLPHWHU '+

7KH DOWLWXGH DZDUHQHVV SURJUDP VKRXOG HPSKDVL]H


WKH IROORZLQJ DVSHFWV

1RWH  

7KH 5$ '+ FDQ EH VHW HJ DW  IW  IRU

$ZDUHQHVV RI DOWLPHWHU VHWWLQJ HUURUV HJ

WHUUDLQ DZDUHQHVV SXUSRVHV ,Q WKLV FDVH WKH

RU

XVH RI WKH UDGLR DOWLPHWHU VKRXOG EH GLVFXVVHG

GXULQJ WKH DSSURDFK EULHILQJ


)RU DOO DSSURDFKHV H[FHSW &$7 , ZLWK 5$
&$7

,,

DQG

&$7

,,,

,/6

;; LQKJ YHUVXV ;; RU ;; LQKJ

DSSURDFKHV

;; LQKJ YHUVXV ;; K3D

$ZDUHQHVV RI DOWLWXGH FRUUHFWLRQV IRU ORZ 2$7

WKH DSSURDFK 0,1,080 FDOORXW ZLOO EH EDVHG RQ

RSHUDWLRQV

WKH EDURDOWLPHWHU EXJ VHW DW WKH 0'$ + RU

FRQWUROOHUV

WKH '$ + 

FRUUHFWLRQV

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

DQG

DZDUHQHVV

UHVSRQVLELOLW\

LQ

RI

SLORWV

DSSO\LQJ

DQGRU
WKHVH

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

3LORW  &RQWUROOHU &RPPXQLFDWLRQV

7HUUDLQ

DYRLGDQFH

%ULHILQJ 1RWH
$ FRPSDQ\ DZDUHQHVV DQG WUDLQLQJ SURJUDP RQ SLORW
LPSOHPHQWHG

LQYROYLQJ

SLORWV

SHUVRQQHO UHIHU WR %ULHILQJ 1RWH

DQG

PDQHXYHU

VHH

0DQHXYHU 

 FRQWUROOHU FRPPXQLFDWLRQV VKRXOG EH GHYHORSHG


DQG

SXOOXS

 5HVSRQVH WR *3:6 3XOOXS

$7&

 (IIHFWLYH

)OLJKW 2YHUYLHZ

3LORW  &RQWUROOHU &RPPXQLFDWLRQV 

&RFNSLW 3UHSDUDWLRQ 'HSDUWXUH %ULHILQJ


5RXWH )DPLOLDUL]DWLRQ 3URJUDP
7KH

WUDLQLQJ

GHSDUWXUH

SURJUDP

VKRXOG

URXWH

EH

DQG

IOLJKW

SODQ

VKRXOG

EH

FURVV

IRU

DLUSRUW

IOLJKW SODQ XVLQJ WKH 6,' DQG HQURXWH FKDUWV WKH

LPSOHPHQWHG

DSSURDFK

FRPSXWHUL]HG

FKHFNHG DJDLQVW WKH $7& FOHDUDQFH DQG WKH )06

)06 &'8 DQG WKH 1' WR VXSSRUW DQG LOOXVWUDWH WKLV

IDPLOLDUL]DWLRQ XVLQJ

FURVVFKHFN

+LJKUHVROXWLRQ SDSHU PDWHULDO

9LGHR SURJUDP DQGRU

6LPXODWRU ZLWK HQKDQFHG YLVXDO FDSDELOLW\

7KH WDNHRII DQG GHSDUWXUH EULHILQJ VKRXOG LQFOXGH


WKH

IROORZLQJ

WHUUDLQDZDUHQHVVLWHPV

XVLQJ

DOO

DYDLODEOH FKDUWV DQG IOLJKW GHFN GLVSOD\V WR VXSSRUW


DQG LOOXVWUDWH WKH EULHILQJ

:KHQHYHU ZDUUDQWHG QHZ SLORWV VKRXOG FRQGXFW D

6LJQLILFDQW

URXWH IDPLOLDUL]DWLRQ FKHFN

WHUUDLQ

RU

REVWDFOHV

DORQJ

WKH

LQWHQGHG GHSDUWXUH FRXUVH DQG

$V IOLJKW FUHZPHPEHU ZLWK D FKHFN DLUPDQ RU

$V REVHUYHU ZLWK D TXDOLILHG IOLJKWFUHZ

6,' URXWLQJ DQG PLQLPXP VDIH DOWLWXGHV

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

LQFOXGH
$VVRFLDWHG RSHUDWLRQDO VFHQDULR V 

3URWHFWLRQ HQYHORSH

WKH

GHSDUWXUH

LV

0DLQWDLQ D VWHULOH FRFNSLW XQWLO UHDFKLQJ   IW

DW QLJKW RU LQ ,0&

0RQLWRU WKH FRUUHFW VHTXHQFLQJ RI WKH IOLJKW SODQ


DW HDFK ZD\SRLQW DQG WKH FRUUHFW JXLGDQFH DIWHU

DLUFUDIW FRQILJXUDWLRQ LH ODQGLQJ JHDU

VHTXHQFLQJ

IODSV 

IOLJKW SODQ UHYLVLRQ RU DIWHU SHUIRUPLQJ D ',5 72

EDURPHWULF

DOWLWXGH

UDQJH

RU

UDGLR

DOWLWXGH UDQJH DQGRU

QRW

RU WKH VHFWRU PLQLPXP VDIH DOWLWXGH SDUWLFXODUO\

RU

UDGDUPRQLWRUHG E\ $7&

8QGHUVWDQGLQJ HDFK *3:6 PRGH WKLV VKRXOG

%H DZDUH RI ZKHWKHU

WKH

ZD\SRLQW

SDUWLFXODUO\

DIWHU

(QVXUH WKDW WKH GLUHFWLRQ RI WXUQ DQG WKH 72


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

EDURPHWULFDOWLWXGH ORVV

DSSURSULDWH

YHUWLFDO VSHHG

UDGLRDOWLPHWHU FORVXUH UDWH

UDGLR DOWLWXGH RU

JOLGH VORSH GHYLDWLRQ

ZD\SRLQW@

RU

WR

UHYHUW

WR

VHOHFWHG ODWHUDO QDYLJDWLRQ

(QURXWH 1DYLJDWLRQ
7KH

HQURXWH

FKDUWV

VKRXOG

EH

UHDGLO\

DFFHVVLEOH

LQ UHDGLQHVV IRU D SRVVLEOH ORVV RI )06 QDYLJDWLRQ RU


LI DQ\ GRXEW H[LVWV DERXW WKH )06 ODWHUDO JXLGDQFH

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)OLJKW 3URJUHVV 0RQLWRULQJ

$7,6

'XULQJ FOLPE FUXLVH DQG GHVFHQW IOLJKW FUHZ VKRXOG

5HYLHZ DQG GLVFXVV WKH IROORZLQJ LWHPV

0RQLWRU )06 JXLGDQFH DQG QDYLJDWLRQ DFFXUDF\

0RQLWRU LQVWUXPHQWV DQG QDYDLGV UDZ GDWD DV


DSSOLFDEOH 

8VH

DOO

DYDLODEOH

LQIRUPDWLRQ

LH

5XQZD\ LQ XVH W\SH RI DSSURDFK 

([SHFWHG

FRFNSLW

GRXEW

H[LVWV

DERXW

WHUUDLQ

URXWH

67$5

RU

UDGDU

$OWLPHWHU VHWWLQJ 41+ RU 4)( DV UHTXLUHG 


DQG

5HTXHVW FRQILUPDWLRQ RU FODULILFDWLRQ IURP $7& LI


DQ\

DUULYDO

YHFWRUV 

GLVSOD\V QDYDLGV UDZ GDWD DQG FKDUWV  DQG

FOHDUDQFH

SDUWLFXODUO\ ZKHQ EHLQJ UDGDU YHFWRUHG

7UDQVLWLRQ OHYHO XQOHVV VWDQGDUG IRU WKH FRXQWU\


RU IRU WKH DLUSRUW 

'HVFHQW

3UHSDUDWLRQ

$SSURDFK

DQG

*R

$SSURDFK &KDUW

DURXQG %ULHILQJ
$

WKRURXJK

EULHILQJ

VKRXOG

EH

5HYLHZ

SHUIRUPHG

UHJDUGOHVV RI

+RZ

+RZ

RIWHQ

GLVFXVV

WKH

IROORZLQJ

WHUUDLQ

)061' DV DSSOLFDEOH 

IDPLOLDU

WKH

GHVWLQDWLRQ

DLUSRUW

DQG

WKH

DSSURDFK PD\ EH RU

DQG

DZDUHQHVVLWHPV XVLQJ WKH DSSURDFK FKDUW DQG WKH

WKH

FUHZPHPEHUV

KDYH

IORZQ

WRJHWKHU

'HVLJQDWHG UXQZD\ DQG DSSURDFK W\SH

&KDUW LQGH[ QXPEHU DQG GDWH

0LQLPXP

6DIHW\

$OWLWXGH

06$

UHIHUHQFH

SRLQW VHFWRUV DQG DOWLWXGHV


7KH EULHILQJ VKRXOG KHOS WKH 3) JLYLQJ WKH EULHILQJ
DQG

WKH

31)

UHFHLYLQJ

DQG

DFNQRZOHGJLQJ

WKH

/HWGRZQ

QDYDLG

IUHTXHQF\

DQG

LGHQWLILFDWLRQ

FRQILUP WKH FRUUHFW QDYDLG VHWXS 

EULHILQJ WR UHDFK DQG VKDUH D FRPPRQ PHQWDO


PRGHO RI WKH DSSURDFK

$LUSRUW HOHYDWLRQ

,Q KLOO\ RU PRXQWDLQRXV DUHDV WKH EULHILQJ VKRXOG

$SSURDFK
DOWLWXGH

LQFOXGH WKH IROORZLQJ WHUUDLQDZDUHQHVVLWHPV

WUDQVLWLRQV
DQG

IL[HV

VSHHG

KROGLQJ

SDWWHUQ

FRQVWUDLQWVUHVWULFWLRQV

UHTXLUHG QDYDLGV VHWXS 

'HVFHQW SURILOH DQG GHVFHQW PDQDJHPHQW

DSSURDFK

IL[

,$)

DQG

LQWHUPHGLDWH

DSSURDFK IL[ ,)  DV DSSOLFDEOH SRVLWLRQV DQG

7HUUDLQ IHDWXUHV

(QHUJ\

PDQDJHPHQW

FURVVLQJ DOWLWXGHV 
LH

GHFHOHUDWLRQ

DQG

FRQILJXUDWLRQ PDQDJHPHQW  DQG

,QLWLDO

)LQDO DSSURDFK FRXUVH DQG OHDGLQ UDGLDO 

7HUUDLQ

IHDWXUHV

ORFDWLRQ

DQG

HOHYDWLRQ

RI

KD]DUGRXV WHUUDLQ RU PDQPDGH REVWDFOHV 


2WKHU DSSURDFK KD]DUGV HJ EODFN KROH 

7KH IOLJKW PDQDJHPHQW V\VWHP )06 RSHUDWLRQDO


SDJHV DQG WKH 1' VKRXOG EH XVHG WR JXLGH DQG

$SSURDFK SURILOH YLHZ 




)LQDO DSSURDFK IL[ )$) 

)LQDO GHVFHQW SRLQW LI GLIIHUHQW IURP )$) 

9LVXDO GHVFHQWGHFLVLRQ SRLQW 9'3 

0LVVHGDSSURDFK SRLQW 0$3 

7\SLFDO

LOOXVWUDWH WKH EULHILQJ DQG WR FRQILUP WKH YDULRXV


GDWD HQWULHV
$Q H[SDQGHG UHYLHZ RI WKH WHUUDLQDZDUHQHVVLWHPV
WR EH LQFOXGHG LQ WKH DSSURDFK EULHILQJ DV SUDFWLFDO

YHUWLFDO

VSHHG

DW

H[SHFWHG

DSSURDFK JURXQG VSHHG *6  DQG

DQG DSSURSULDWH IRU WKH FRQGLWLRQV RI WKH IOLJKW LV


SURYLGHG KHUHDIWHU

7RXFKGRZQ ]RQH HOHYDWLRQ 7'=( 

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

ILQDO

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,Q ORZ WHPSHUDWXUH WKH WUXH DOWLWXGH LV ORZHU WKDQ

0LVVHG DSSURDFK 

/DWHUDO DQG YHUWLFDO QDYLJDWLRQ DQG

6LJQLILFDQW WHUUDLQ RU REVWDFOHV

WKH

LQGLFDWHG

DQWLFLSDWHG

DOWLWXGH

WHUUDLQ

UHVXOWLQJ

VHSDUDWLRQ

LQ

ORZHUWKDQ

DQG

LQ

WHUUDLQ FOHDUDQFH KD]DUG DV LOOXVWUDWHG E\

SRVVLEOH

)LJXUH 

IRU D  GHJUHH &HOVLXV 2$7 

/RZ 2$7 2SHUDWLRQ


:KHQ

RSHUDWLQJ

ZLWK

ORZ

2$7

7UXH
$OWLWXGH

WHPSHUDWXUH

FRUUHFWLRQV RQ WKH LQGLFDWHG DOWLWXGH QHHG WR EH

*LYHQ $WPRVSKHULF 3UHVVXUH

DSSOLHG WR DOO WKH IROORZLQJ SXEOLVKHG DOWLWXGHV

SUHVVXUH DOWLWXGH

0($ 06$

7UDQVLWLRQ URXWHV DOWLWXGH

3URFHGXUH WXUQ DOWLWXGH DV DSSOLFDEOH 

)$) DOWLWXGH

6WHSGRZQ DOWLWXGH V DQG 0'$ + GXULQJ D QRQ

,QGLFDWHG
$OWLWXGH

 IW
 IW

,/6 DSSURDFK

 IW

 IW
 IW

+LJK 2$7

/RZ 2$7

20 FURVVLQJ DOWLWXGH GXULQJ DQ ,/6 DSSURDFK

)LJXUH 

DQG

6WDQGDUG 2$7

:D\SRLQWV

FURVVLQJ

DSSURDFK

IORZQ

DOWLWXGHV

ZLWK

GXULQJ

EDURPHWULF

(IIHFW RI 2$7 RQ 7UXH $OWLWXGH

*36

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

7DEOH  IHDWXULQJ D ZHOONQRZQ DYLDWLRQ JROGHQ UXOH

WHUUDLQ VHSDUDWLRQ
:KHQ 2$7 LV VLJQLILFDQWO\ ZDUPHU RU FROGHU WKDQ WKH
VWDQGDUG

WHPSHUDWXUH

WKH

LQGLFDWHG

DOWLWXGH

LV

KLJKHU RU ORZHU WKDQ WKH WUXH DOWLWXGH DV LOOXVWUDWHG


E\

)URP

7R

+LJK

/RZ

:DUP

&ROG

)LJXUH 

$WPRVSKHULF
3UHVVXUH

2$7

/RRN
RXW
EHORZ

7DEOH 
$WPRVSKHULF 3UHVVXUH DQG 7HPSHUDWXUH (IIHFWV
RQ 7UXH $OWLWXGH

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$LUSRUW FKDUWV

5HYLHZ

0RQLWRU WKH FRUUHFW VHTXHQFLQJ RI WKH IOLJKW SODQ DW

DQG

GLVFXVV

WKH

IROORZLQJ

HDFK

WHUUDLQ

DZDUHQHVVLWHPV XVLQJ WKH DLUSRUW FKDUWV

$SSURDFK

DQG

UXQZD\

OLJKWLQJ

DQG

WKH

FRUUHFW

JXLGDQFH

DIWHU

SODQ UHYLVLRQ RU DIWHU SHUIRUPLQJ D ',5 72

DQG

RWKHU

H[SHFWHG YLVXDO UHIHUHQFHV DQG

ZD\SRLQW

VHTXHQFLQJ WKH ZD\SRLQW SDUWLFXODUO\ DIWHU D IOLJKW

(QVXUH WKDW WKH GLUHFWLRQRIWXUQ DQG WKH 72


ZD\SRLQW DUH LQ DFFRUGDQFH ZLWK WKH 6,'

6SHFLILF KD]DUGV VXFK DV PDQPDGH REVWDFOHV


DV DSSOLFDEOH 

,Q

FDVH

RI

LQFRUUHFW

IOLJKW

SODQ

VHTXHQFLQJ

DQGRU RI LQFRUUHFW ODWHUDO JXLGDQFH FUHZ VKRXOG


EH DOHUW WR SHUIRUP D ',5 72 >DQ DSSURSULDWH
ZD\SRLQW@

,I DQRWKHU DLUSRUW LV ORFDWHG LQ WKH FORVH YLFLQLW\ RI WKH

RU

WR

UHYHUW

WR

VHOHFWHG

ODWHUDO

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

WR

)06PDQDJHG

JXLGDQFH

RU

DOWLWXGH

FOHDUDQFH

WR

VHJPHQW PLQLPXP VDIH DOWLWXGH

VHOHFWHG

PRGHV DQG

DV

ORZHU

GHVFHQG SUHPDWXUHO\ EHORZ WKH FKDUWHG VHFWRU RU

RI

XQGHUVWRRG

DQG ODWHUDO QDYLJDWLRQ


8VH

EH

FOHDUHG

VKRXOG

QHYHU

EHLQJ

'LVFXVV WKH LQWHQGHG XVH RI DXWRPDWLRQ IRU YHUWLFDO

:KHQ EHLQJ UDGDU YHFWRUHG PDNH VXUH WKDW 

8VH RI SUHFLVLRQ DSSURDFK FRQVWDQWDQJOH RU

VWHSGRZQ QRQSUHFLVLRQ DSSURDFK DV UHTXLUHG

7KH FRQWUROOHU KDV FOHDUO\ LGHQWLILHG \RXU UDGDU


UHWXUQ E\ VWDWLQJ UDGDU FRQWDFW

7KH

FRQWUROOHU

FDQ

UHDG

REVWDFOH

FOHDUDQFH

DOWLWXGHV RQ KLV RU KHU UDGDU VFRSH DZDUHQHVV

'HVFHQW 0DQDJHPHQW DQG 0RQLWRULQJ

RI PLQLPXP YHFWRULQJ DOWLWXGH DQG UHVSRQVLELOLW\


IRU WHUUDLQ VHSDUDWLRQ 

%HIRUH HQWHULQJ WKH WHUPLQDO DUHD 70$  FKHFN WKH


)06 QDYLJDWLRQ DFFXUDF\ XVLQJ QDYDLGV UDZ GDWD
DJDLQVW

WKH

DSSOLFDEOH

FULWHULD

IRU

WHUPLQDO

RU

7KH FRQWUROOHU GRHV QRW IRUJHW WKDW \RX DUH RQ D


UDGDU

DSSURDFK QDYLJDWLRQ

YHFWRU

KHDGLQJ

WRZDUG

KLJK

RU

ULVLQJ

WHUUDLQ

,I WKH DFFXUDF\ FULWHULD IRU ODWHUDO )06 QDYLJDWLRQ LQ


WHUPLQDO DUHD DQGRU IRU DSSURDFK DUH QRW PHW

7KH SLORW  FRQWUROOHU WZRZD\ FRPPXQLFDWLRQ


UHPDLQ HIIHFWLYH DW DOO WLPHV

UHYHUW WR D VHOHFWHG ODWHUDO PRGH ZLWK 1' LQ 526(

RU $5& PRGH

<RX PDLQWDLQ \RXU RZQ YHUWLFDO DQG KRUL]RQWDO


VLWXDWLRQDO DZDUHQHVV DQG

,I IO\LQJ ZLWK ,56 21/< QDYLJDWLRQ GR QRW GHVFHQG

EHORZ WKH VHFWRU 06$ ZLWKRXW SRVLWLYH FRQILUPDWLRQ

<RX UHTXHVW FRQILUPDWLRQ RU FODULILFDWLRQ IURP


$7& ZLWKRXW GHOD\ DQG LQ FOHDU WHUPV LQ FDVH RI

RI WKH DLUFUDIW SRVLWLRQ XVLQJ QDYDLGV UDZ GDWD

DQ\ GRXEW
7R

6WDQGDUG $UULYDO  67$5

SUHYHQW

DQ

H[FHVVLYH

WHUUDLQFORVXUHUDWH

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

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 '$ + 

WKH

VHFWRU

PLQLPXP

VDIH

DOWLWXGH

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5DGLR DOWLPHWHU UHDGLQJV EHORZ REVWDFOH FOHDUDQFH


OHYHOV OLVWHG EHORZ VKRXOG SURPSW

DQ

DOWLWXGH DQG SRVLWLRQ FKHFN

x
x

$LUSRUW HQYLURQPHQW

,QLWLDO DSSURDFK IURP ,$) WR ,)   IW $*/


,QWHUPHGLDWH DSSURDFK IURP ,) WR )$) RU DW

)LQDO

DSSURDFK

QRQSUHFLVLRQ

DSSURDFKHV

LQERXQG RI )$)   IW $*/


8QOHVV WKH DLUSRUW IHDWXUHV KLJK FORVHLQ WHUUDLQ
ZLWK

WKH

KHLJKW

DERYH

DLUILHOG

EODFN

KROH

DQGRU

ULVLQJ VORSLQJ

$LUSRUW HTXLSPHQW

/DFN RI RU UHVWULFWHG UDGDU FRYHUDJH

/DFN RI SUHFLVLRQ DSSURDFK DQGRU ODFN RI


9$6,3$3, DQG

WKH 5$ UHDGLQJ KHLJKW $*/ VKRXOG UHDVRQDEO\


DJUHH

1LJKW

WHUUDLQ DORQJ WKH DSSURDFK SDWK

PLQLPXP UDGDU YHFWRULQJ DOWLWXGH   IW $*/

ODFN RI *3:6 RU 7$:6

LPPHGLDWH

HOHYDWLRQ

/LPLWHG DQGRU ORZLQWHQVLW\ DSSURDFK DQG


UXQZD\ OLJKWLQJ

REWDLQHG E\ GLUHFW UHDGLQJ RI WKH DOWLPHWHU LI XVLQJ


4)( RU E\ FRPSXWDWLRQ LI XVLQJ 41+ 

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


%H

SUHSDUHG

DQG

/DFN RI SXEOLVKHG LQIRUPDWLRQ RQ PLQLPXP


UDGDU YHFWRULQJ DOWLWXGHV DQG

PLQGHG

WR

JRDURXQG

LI

WKH

FRQGLWLRQV IRU D VDIH DSSURDFK DQG ODQGLQJ DUH QRW

$EVHQFH

RQ

FRORUHG

WHUUDLQ

FRQWRXUV

RQ

DSSURDFK FKDUWV

PHW HJ XQVWDELOL]HG DSSURDFK DW RU EHORZ WKH

DSSURDFK JDWH  VWDELOL]DWLRQ KHLJKW 

7UDLQLQJ 

&LUFOLQJ $SSURDFKHV

$EVHQFH

RI

DUHD

DQGRU

DLUSRUW

IDPLOLDUL]DWLRQ WUDLQLQJ DQG


:KHQ SHUIRUPLQJ D FLUFOLQJ DSSURDFK EH DZDUH RI

DQG VWD\ ZLWKLQ WKH DSSOLFDEOH REVWDFOH FOHDUDQFH

7KH IROORZLQJ IDFWRUV RIWHQ DUH FLWHG DV DIIHFWLQJ WKH


ODWHUDO

VLWXDWLRQDO

DZDUHQHVV

DQG

,QDGHTXDWH EULHILQJV

0RQLWRULQJ HUURUV LH LQDELOLW\ WR PRQLWRU


WKH DLUFUDIW WUDMHFWRU\ DQG LQVWUXPHQWV ZKLOH
SHUIRUPLQJ

DJHQFLHV

SUHYHQWLRQ
LQLWLDWLQJ

VWUDWHJLHV

DSSURSULDWH

RSHUDWLRQDO

DQG

DFWLRQV

DXWKRULWLHV

OLQHVRI
ZLWK

DQG

VWDWH

VHUYLFH

/DFN

RI

GLVSOD\

QDYLJDWLRQ
RU

UDGDU

GLVSOD\

GLVSOD\

ZLWK

ZLWK

WHUUDLQ

,QDGHTXDWH

,QFRUUHFW

ZKLOH

EHLQJ

PRQLWRULQJ

RI

IOLJKW

SURJUHVV

XVH

RI

RU

LQWHUDFWLRQ

ZLWK

2PLVVLRQ RI D QRUPDO FKHFNOLVW RU SDUW RI D


QRUPDO

PDSSLQJ

FKHFNOLVW

XVXDOO\

EHFDXVH

RI

LQWHUUXSWLRQ RU GLVWUDFWLRQ  DQGRU

IXQFWLRQ

RU

DXWRPDWLRQ

$LUFUDIW HTXLSPHQW

HQWULHV

LH EHLQJ EHKLQG WKH DLUFUDIW 

SURYLGHUV

)06

LQWHUUXSWHG RU GLVWUDFWHG 

7KHVH IDFWRUV VKRXOG EH DGGUHVVHG E\ GHYHORSLQJ


GHIHQVH

DSSOLFDEOH

6WDQGDUG RSHUDWLQJ SURFHGXUHV

WKHUHIRUH WKH WHUUDLQ DZDUHQHVV

FRPSDQ\

RI

YHFWRULQJ DOWLWXGH

)DFWRUV $IIHFWLQJ 7HUUDLQ $ZDUHQHVV


RU

NQRZOHGJH

REVWDFOH FOHDUDQFH DQGRU VHFWRU PLQLPXP

SURWHFWHG DUHD

KRUL]RQWDO

,QDGHTXDWH

ODFN RI DUHD QDYLJDWLRQ 51$9 FDSDELOLW\

'HOLEHUDWH RU LQDGYHUWHQW QRQDGKHUHQFH WR


SURFHGXUHV

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

3LORW&RQWUROOHU &RPPXQLFDWLRQV

7R

VKRXOG

2PLVVLRQ RI SRVLWLRQ UHSRUW DW ILUVW UDGLR


FRQWDFW LQ DQ DUHD ZLWKRXW UDGDU FRYHUDJH
LH

UHGXFLQJ

WKH

FRQWUROOHUV

VLWXDWLRQDO

FRPPXQLFDWLRQV

HJ

IDLOXUH

WR

DPELJXLWLHV

UHVROYH

XVH

RI

GRXEWV

RU

$FFHSWLQJ DQ DPHQGHG FOHDUDQFH ZLWKRXW

,QFRUUHFW

&50

FURVVFKHFN

%H DZDUH RI DOWLPHWHU VHWWLQJ FKDQJHV GXH WR

DQG

%H DZDUH RI WKH DOWLPHWHU VHWWLQJ XQLW LQ XVH DW

%H DZDUH RI WKH DQWLFLSDWHG DOWLPHWHU VHWWLQJ


XVLQJ WZR LQGHSHQGHQW VRXUFHV IRU FURVVFKHFN
HJ 0(7$5 DQG $7,6 PHVVDJHV 

+XPDQ )DFWRUV DQG &50

SUDFWLFHV
EDFNXS

DEVHQFH
IRU

$3

RI

PRGH

(QVXUH HIIHFWLYH FURVVFKHFN DQG EDFNXS

$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

)DLOXUH WR UHVROYH D GRXEW RU FRQIXVLRQ

)DWLJXH

DOWLWXGH FDOORXWV

&RPSODFHQF\

5$ FDOORXWV DQG

6SDWLDO GLVRULHQWDWLRQ DQGRU

VHWWLQJ RI EDURDOWLPHWHU EXJ DQG 5$ '+

9LVXDO LOOXVLRQV

6XPPDU\ RI NH\ SRLQWV


IROORZLQJ

NH\

SRLQWV

XVH RI VWDQGE\ DOWLPHWHU WR FURVVFKHFN PDLQ


DOWLPHWHUV

&URVVFKHFN WKDW WKH FOHDUHG  DVVLJQHG DOWLWXGH


LV

7KH

FUHZ

WKH GHVWLQDWLRQ DLUSRUW

QRQVWDQGDUG

SULRU HYDOXDWLRQ

IOLJKW

SHUPDQHQW RU VHDVRQDO ORZ SUHVVXUH DUHDV 

UHDGEDFNKHDUEDFN

SKUDVHRORJ\  DQGRU

HUURUV

RU ZDUP IURQWV VWHHS IURQWDO VXUIDFHV VHPL

%UHDNGRZQ LQ SLORW  FRQWUROOHU RU LQWUDFUHZ


HUURUV

DOWLPHWHUVHWWLQJ

SUHYDLOLQJ ZHDWKHU FRQGLWLRQV HJ H[WUHPH FROG

DZDUHQHVV 

UHGXFH

DERYH

WKH

VHFWRU

PLQLPXP

VDIH

DOWLWXGH

XQOHVV FUHZ LV DZDUH RI DSSOLFDEOH PLQLPXP


YHFWRULQJ DOWLWXGH IRU WKH VHFWRU 
DQG

UHFRPPHQGDWLRQV

)OLJKW SURJUHVV PRQLWRULQJ

VKRXOG EH XVHG LQ WKH GHYHORSPHQW RI FRPSDQ\


SUHYHQWLRQ VWUDWHJLHV DQG DFWLRQV HQKDQFLQJ WHUUDLQ
DZDUHQHVV

)OLJKW PRQLWRULQJ IRU WHUUDLQ DZDUHQHVV LQFOXGHV

$SSURDFK &KDUWV

3URYLGLQJ IOLJKW FUHZV ZLWK GHSDUWXUH DQG DSSURDFK

0RQLWRULQJ LQVWUXPHQWV DQG QDYDLGV UDZ GDWD

8VLQJ DOO DYDLODEOH LQIRUPDWLRQ DYDLODEOH LH

0RQLWRULQJ )06 JXLGDQFH DQG )06 QDYLJDWLRQ


DFFXUDF\

FKDUWV IHDWXULQJ WHUUDLQ ZLWK FRORU VKDGHG FRQWRXUV

$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

5HTXHVWLQJ

FRQILUPDWLRQ

RU

FODULILFDWLRQ

IURP

$7& LI DQ\ GRXEW H[LVWV DERXW WHUUDLQ FOHDUDQFH

RI EDURDOWLPHWHU EXJ DQG UDGLRDOWLPHWHU '+

SDUWLFXODUO\ ZKHQ EHLQJ UDGDU YHFWRUHG

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH

$SSURDFK DQG JRDURXQG EULHILQJ

UROH

DQG

HPSKDVL]HG

7KH IROORZLQJ WHUUDLQ DZDUHQHVV FULWLFDO LWHPV VKRXOG

WDVNV

E\

RI

WKH

KLJKOLJKWLQJ

31)
LV

VKRXOG

UROH

DV

EH
SLORW

PRQLWRULQJ

EH LQFOXGHG LQ WKH DSSURDFK DQG JRDURXQG EULHILQJ

$ZDUHQHVV RI RWKHU DSSURDFK KD]DUGV

0LQLPXP VDIHW\ DOWLWXGHV

7HUUDLQ DQG PDQPDGH REVWDFOHV IHDWXUHV

$SSOLFDEOH

3LORWV
DSSURDFK

PLQLPXPV

YLVLELOLW\

RU

VKRXOG

UHFHLYH

HGXFDWLRQ

DQG

WUDLQLQJ

RQ

YLVXDO LOOXVLRQV DQG VSDWLDO GLVRULHQWDWLRQ

595 FHLOLQJ DV DSSOLFDEOH 

$SSOLFDEOH VWDELOL]DWLRQ KHLJKW DSSURDFK JDWH 

)LQDO DSSURDFK GHVFHQW IOLJKW SDWK DQJOH DQG

$VVRFLDWHG %ULHILQJ 1RWHV

YHUWLFDO VSHHG  DQG

7KH

IROORZLQJ

LQIRUPDWLRQ

*RDURXQG DOWLWXGH DQG PLVVHGDSSURDFK LQLWLDO

RQ

%ULHILQJ
VXEMHFWV

1RWHV
DQG

SURYLGH
PDWWHUV

H[SDQGHG
UHODWHG

VWHSV

  6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

3UHSDUHGQHVV DQG FRPPLWPHQW IRU JRDURXQG

 2SWLPXP 8VH RI $XWRPDWLRQ

7KH IROORZLQJ VKRXOG EH VWUHVVHG

  2SHUDWLRQV *ROGHQ 5XOHV

 6WDQGDUG &DOOV

 8VH RI 1RUPDO &KHFNOLVWV

 $SSURDFK DQG *RDURXQG %ULHILQJ

 (IIHFWLYH &UHZ  $7&

%HLQJ FRPPLWWHG IRU DQ LPPHGLDWH UHVSRQVH WR


DQ\ *3:6  7$:6 ZDUQLQJ SDUWLFXODUO\ DW
QLJKW RU LQ ,0&  DQG

%HLQJ SUHSDUHG DQG PLQGHG WR JRDURXQG

&RPPXQLFDWLRQV

3LORW  FRQWUROOHU FRPPXQLFDWLRQV

$Q DZDUHQHVV DQG WUDLQLQJ SURJUDP WR LPSURYH SLORW


RQ

WKH

FRQWHQWV

RI

%ULHILQJ

'LVWUDFWLRQV

1RWH

 (IIHFWLYH 3LORW&RQWUROOHU &RPPXQLFDWLRQV

&UHZ FRRUGLQDWLRQ FURVVFKHFN DQG EDFNXS

7KH

IROORZLQJ

HIIHFWLYH

WHUUDLQDZDUHQHVV

FURVVFKHFN

DQG

HOHPHQWV

EDFNXS

RI

VKRXOG

 $OWLWXGH GHYLDWLRQV

 %HLQJ 3UHSDUHG IRU *RDURXQG

 7HUUDLQ$YRLGDQFH *3:6 3XOOXS

DQ

0DQHXYHU

EH

HPSKDVL]HG

 ,QWUD&RFNSLW &RPPXQLFDWLRQV


0DQDJLQJ LQWHUUXSWLRQV DQG

 FRQWUROOHU FRPPXQLFDWLRQV VKRXOG EH GHYHORSHG


EDVHG

WR

WHUUDLQ DZDUHQHVV

5HJXODWRU\ 5HIHUHQFHV

$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

6WDQGDUG FDOOV SDUWLFXODUO\ DOWLWXGH FDOOV 

([FHVVLYHSDUDPHWHUGHYLDWLRQ FDOORXWV DQG

7DVN

VKDULQJ

DQG

VWDQGDUG

FDOOV

IRU

,&$2  3$16236  9ROXPH ,  3DUW 9,


$OWLPHWHU VHWWLQJ SURFHGXUHV  &KDSWHU  /RZ
2$7 RSHUDWLRQ  $OWLWXGH FRUUHFWLRQV

WKH

)$5  5HVSRQVLELOLW\ DQG DXWKRULW\ RI WKH


SLORW LQ FRPPDQG

DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)$5  0LQLPXP VDIH DOWLWXGHV *HQHUDO

2WKHU 5HIHUHQFHV

)$5  $OWLPHWHU VHWWLQJV

7KH IROORZLQJ )OLJKW 6DIHW\ )RXQGDWLRQ UHIHUHQFHV

)$5  &RPSOLDQFH ZLWK $7& FOHDUDQFHV

LQIRUPDWLRQ FRQWDLQHG LQ WKLV %ULHILQJ 1RWH

DQG LQVWUXFWLRQV

&),7 (GXFDWLRQ DQG 7UDLQLQJ $LG

)$5  %DVLF 9)5 ZHDWKHU PLQLPXPV

&),7 &KHFNOLVW (YDOXDWH WKH 5LVN DQG 7DNH

FDQ EH XVHG WR IXUWKHU LOOXVWUDWH DQG FRPSOHPHQW WKH

$FWLRQ

)$5  6SHFLDO 9)5 ZHDWKHU PLQLPXPV

)$5  7DNHRII DQG ODQGLQJ XQGHU ,)5

)$5  ,)5 RSHUDWLRQV

$/$5 5LVN $ZDUHQHVV 7RRO&KHFNOLVW

$/$5 5LVN 5HGXFWLRQ 3ODQQLQJ *XLGH

)OLJKW

6DIHW\

'LJHVW

.LOOHUV

LQ

$YLDWLRQ

1RY)HE

7ZRZD\ FRPPXQLFDWLRQV IDLOXUH

)$5  6WDQGDUG ,QVWUXPHQW $SSURDFK


3URFHGXUHV 7HUPLQDO ,QVWUXPHQW $SSURDFK
3URFHGXUHV 7(536 

)$5  RU  $LUSRUWV 5HTXLUHG


GDWD

)$5  0DQXDO 5HTXLUHPHQWV


2SHUDWLRQV 0DQXDO &RQWHQWV

)$5  &RFNSLW FKHFN SURFHGXUH

)$5  *URXQG SUR[LPLW\ ZDUQLQJ


JOLGH VORSH GHYLDWLRQ DOHUWLQJ V\VWHP

)$5  DQG  5RXWH 6SHFLDO


DUHDV DQG DLUSRUWV TXDOLILFDWLRQ IRU SLORW LQ

3KRWR FUHGLW  7$.(2)) 7KH 6ZLVV 3URIHVVLRQDO 3LORWV $VVRFLDWLRQ 0DJD]LQH

FRPPDQG 3,& 

)$5  )OLJKW FUHZPHPEHU GXWLHV


VWHULOH FRFNSLW UXOH 

7HUUDLQ $ZDUHQHVV :KHQ DQG +RZ "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQGODQGLQJ%ULHILQJ1RWH

9LVXDO,OOXVLRQV$ZDUHQHVV

,QWURGXFWLRQ

9LVXDO LOOXVLRQV WDNH SODFH ZKHQ FRQGLWLRQV PRGLI\


WKH IOLJKW FUHZ SHUFHSWLRQ RI WKH HQYLURQPHQW UHODWLYH
WR KLV  KHU H[SHFWDWLRQV
9LVXDO LOOXVLRQV PD\ UHVXOW LQ ODQGLQJ VKRUW RI WKH
UXQZD\ KDUG ODQGLQJ RU UXQZD\ RYHUUXQ EXW DOVR
FDXVH VSDWLDO GLVRULHQWDWLRQ DQG ORVV RI FRQWURO
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI
x )DFWRUV DQG FRQGLWLRQV WKDW PD\ FDXVH YLVXDO
LOOXVLRQV
x +RZ YLVXDO LOOXVLRQV DIIHFW WKH SLORWV SHUFHSWLRQ
RI WKH DLUSRUW  UXQZD\ HQYLURQPHQW DQG UXQZD\
DQG
x +RZ WR OHVVHQ WKH HIIHFWV RI YLVXDO LOOXVLRQV E\
LPSOHPHQWLQJ UHODWHG SUHYHQWLRQ VWUDWHJLHV DQG
OLQHVRIGHIHQVH LQ WUDLQLQJ DQG OLQH RSHUDWLRQ

)DFWRU

6WDWLVWLFDO 'DWD

9LVXDO DSSURDFKHV DUH D FDXVDO IDFWRU LQ   RI DOO


DSSURDFKDQGODQGLQJ DFFLGHQWV DQG LQ   RI IDWDO
DFFLGHQWV
9LVXDO DSSURDFKHV DW QLJKW SUHVHQW D JUHDWHU
H[SRVXUH EHFDXVH RI UHGXFHG YLVXDO FXHV
LQFUHDVHG OLNHOLKRRG RI YLVXDO LOOXVLRQV DQG ULVN RI
VSDWLDO GLVRULHQWDWLRQ
/RZ YLVLELOLW\ DQGRU SUHFLSLWDWLRQV DUH D
FLUFXPVWDQWLDO IDFWRU LQ PRUH WKDQ   RI
DSSURDFKDQGODQGLQJ DFFLGHQWV LQFOXGLQJ WKRVH
LQYROYLQJ &),7

 RI (YHQWV

1LJKW WLPH

 

/RZ YLVLELOLW\

 

,0&

 

'DUNQHVV RU WZLOLJKW

 

1RQ,/6 DSSURDFK

 

3UHFLSLWDWLRQ UDLQ RU VQRZ

 

9LVXDO DSSURDFK

 

9LVXDO LOOXVLRQV RU VSDWLDO


GLVRULHQWDWLRQ

 

$EVHQFH RI 
 OHWGRZQ QDYDLG
 DSSURDFKUXQZD\ OLJKWLQJ
 9$6,  3$3,

 

7DEOH 
9LVXDO )DFWRUV LQ $SSURDFKDQG/DQGLQJ (YHQWV

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

*URXQG WH[WXUH DQG IHDWXUHV

WKH IOLJKW FUHZ YHUWLFDO DQG KRUL]RQWDO VLWXDWLRQDO

2IIDLUSRUW OLJKW SDWWHUQV VXFK DV EULJKWO\ OLJKWHG

ZKHQ WXUQLQJ ILQDO DV DSSOLFDEOH DQG GXULQJ WKH

SDUNLQJ ORWV RU VWUHHWV

ILQDO DSSURDFK

DZDUHQHVV SDUWLFXODUO\ GXULQJ WKH EDVH OHJ DQG

%ODFN KROH DORQJ WKH ILQDO DSSURDFK IOLJKW SDWK

9LVXDO

DQGRU

8SKLOO

LOOXVLRQV

XVXDOO\

LQGXFH

FUHZ

LQSXWV

FRUUHFWLRQV WKDW FDXVH WKH DLUFUDIW WR GHYLDWH IURP


RU

UXQZD\

GRZQKLOO

WKUHVKROG

VORSLQJ
RU

LQ

WHUUDLQ
WKH

EHIRUH

DSSURDFK

WKH RULJLQDO DQG LQWHQGHG YHUWLFDO RU ODWHUDO IOLJKW

WKH

SDWK

SDWK

HQYLURQPHQW
9LVXDO LOOXVLRQV FDQ DIIHFW WKH GHFLVLRQ DERXW ZKHQ
DQG KRZ IDVW WR GHVFHQG IURP WKH 0'$ + 

5XQZD\ HQYLURQPHQW

x
x
x

7KH

5XQZD\ GLPHQVLRQV DVSHFW UDWLR 


5XQZD\ XSKLOO RU GRZQKLOO VORSH

YLVXDO

UXQZD\
$SSURDFK DQG UXQZD\ OLJKWLQJ DQGRU

5XQZD\ FRQGLWLRQ HJ ZHW UXQZD\ 

SDUDJUDSK

SURYLGHV

DQ

H[SDQGHG

LOOXVLRQV

WR

GLVFXVV

KRZ

HDFK

IDFWRU

RU

FRQGLWLRQ PD\ DIIHFW WKH SLORW SHUFHSWLRQ RI

7HUUDLQ GURSRII DW WKH DSSURDFK HQG RI WKH

IROORZLQJ

RYHUYLHZ RI DOO WKH IDFWRUV DQG FRQGLWLRQV FUHDWLQJ

:HDWKHU FRQGLWLRQV

7KH DLUSRUW DQG UXQZD\ HQYLURQPHQW

7KH WHUUDLQ VHSDUDWLRQ DQG

7KH DLUFUDIW YHUWLFDO RU ODWHUDO GHYLDWLRQ IURP WKH


LQWHQGHG IOLJKWSDWK

&HLOLQJ

9LVLELOLW\ LH YHUWLFDO YLVLELOLW\ VODQW YLVLELOLW\ DQG

8VXDOO\ PRUH WKDQ RQH IDFWRU LV LQYROYHG LQ D JLYHQ


DSSURDFK FRPSRXQGLQJ WKH LQGLYLGXDO HIIHFWV

KRUL]RQWDO YLVLELOLW\  DQGRU

&ORXGLQHVV HJ UDLQ IRJ RU IRJ SDWFKHV KD]H

$LUSRUW HQYLURQPHQW

PLVW VPRNH VQRZ ZKLWHRXW HIIHFW 

+RZ GR 9LVXDO ,OOXVLRQV $IIHFW WKH 3LORWV


3HUFHSWLRQ "

%ODFN KROH DORQJ WKH ILQDO DSSURDFK IOLJKW SDWK

,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

DOWHUDWLRQ RI YLVXDO UHIHUHQFHV WKDW PRGLILHV WKH SLORW

FUHZ

DELOLW\

WR

SHUFHLYH

WKH

DLUFUDIW

ODWHUDO SRVLWLRQ DQG YHUWLFDO SRVLWLRQ UHODWLYH

SHUFHSWLRQ RI KLV  KHU SRVLWLRQ UHODWLYH WR WKH UXQZD\

WR WKH LQWHQGHG IOLJKW SDWK

WKUHVKROG

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

8SKLOO

RU

GRZQKLOO

WHUUDLQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

EHIRUH

WKH

5XQZD\ HQYLURQPHQW

UXQZD\

WKUHVKROG

$Q XSKLOO VORSH LQ WKH DSSURDFK ]RQH RU D

5XQZD\ GLPHQVLRQV  DVSHFW UDWLR )LJXUH  

GURSRII RI WHUUDLQ DW WKH DSSURDFK HQG RI

WKH

WKH UXQZD\ FUHDWHV DQ LOOXVLRQ RI EHLQJ WRR

DV VKRZQ RQ )LJXUH   WKXV


SRVVLEO\

LQGXFLQJ

LQFUHDVLQJ WKH UDWH

D
RI

LH

LWV

OHQJWK

UDWLR FUHDWHV DQ LPSUHVVLRQ RI EHLQJ


WRR ORZ DQG

WKDW

SODFHV WKH DLUFUDIW EHORZ WKH LQWHQGHG

D QDUURZ RU ORQJ UXQZD\ KLJK DVSHFW

JOLGH SDWK RU

UDWLR

D ODUJH RU VKRUW UXQZD\ ORZ DVSHFW

FRUUHFWLRQ
GHVFHQW

DVSHFW

SHUVSHFWLYH YLHZ RI WKH UXQZD\

KLJK LH LPSUHVVLRQ RI D VWHHS JOLGH SDWK

UXQZD\

UHODWLYH WR LWV ZLGWK DIIHFWV WKH FUHZ YLVXDO

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

GHJUHH JOLGH VORSH   IW 5$

]RQH

FUHDWHV DQ LOOXVLRQ RI EHLQJ WRR ORZ LH


LPSUHVVLRQ

RI

VKDOORZ

JOLGH

SDWK

DV

VKRZQ RQ )LJXUH   WKXV

SRVVLEO\ LQGXFLQJ D FRUUHFWLRQ SODFLQJ

5XQZD\ XSKLOO RU GRZQKLOO VORSH

WKH DLUFUDIW DERYH WKH LQWHQGHG JOLGH

WRR KLJK LPSUHVVLRQ RI D VWHHS JOLGH SDWK 

SDWK RU

$Q XSKLOO VORSH FUHDWHV DQ LOOXVLRQ RI EHLQJ


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
3HUFHLYHG *OLGH 3DWK
$FWXDO *OLGH 3DWK

$SSURDFK DQG UXQZD\ OLJKWLQJ

7KH DSSURDFK DQG UXQZD\ OLJKWLQJ LQFOXGLQJ


WKH

WRXFKGRZQ

]RQH

OLJKWLQJ

DIIHFWV

WKH GHSW SHUFHSWLRQ DV D IXQFWLRQ RI

7KH OLJKWLQJ LQWHQVLW\

7KH GD\WLPH RU QLJKW WLPH FRQGLWLRQV


DQG

)LJXUH 

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

7KH ZHDWKHU FRQGLWLRQV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

%ULJKW UXQZD\OLJKWV FUHDWH WKH LPSUHVVLRQ

6KDOORZ IRJ LH IRJ OD\HU QRW H[FHHGLQJ

RI EHLQJ FORVHU WR WKH UXQZD\ KHQFH RQ D



VWHHSHU JOLGH SDWK 

REVFXUDWLRQ

IW

LQ

WKLFNQHVV
EXW

LQ

ORZ

ORZ

KRUL]RQWDO

:KHQ RQ WRS RI D VKDOORZ IRJ OD\HU WKH


JURXQG RU DLUSRUW DQG UXQZD\ LI IO\LQJ

JOLGH SDWK 

RYHUKHDG

FDQ

EH

VHHQ

EXW

ZKHQ

$ QRQVWDQGDUG VSDFLQJ RI UXQZD\ OLJKWV

HQWHULQJ WKH IRJ OD\HU WKH IRUZDUG DQG

DOVR PRGLILHV WKH SLORWV SHUFHSWLRQ RI WKH

VODQW YLVLELOLW\ XVXDOO\ DUH ORVW

UXQZD\ GLVWDQFH DQG JOLGH SDWK DQG

LQ

YLVLELOLW\
/RZ LQWHQVLW\ OLJKWV FUHDWH WKH LPSUHVVLRQ RI
EHLQJ IDUWKHU DZD\ KHQFH RQ D VKDOORZHU

UHVXOWV

DOVR

(QWHULQJ D IRJ OD\HU DOVR FUHDWHV WKH


SHUFHSWLRQ RI D SLWFK XS WKXV LQGXFLQJ D

,I UXQZD\ OLJKWLQJ LV SDUWLDOO\ YLVLEOH HJ

WHQGHQF\ WR SXVK RYHU DQG SODFH WKH

GXULQJ WKH GRZQZLQG OHJ RU GXULQJ WKH EDVH

DLUFUDIW EHORZ WKH GHVLUHG JOLGH SDWK DQG

OHJ RI D YLVXDO RU FLUFOLQJ DSSURDFK  WKH

LQ D VWHHSHUWKDQGHVLUHG DWWLWXGH

UXQZD\ PD\ DSSHDU EHLQJ IDUWKHU DZD\ RU


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
D

5XQZD\ DSSURDFK DLGV

YHUWLFDO

GHYLDWLRQ

RU

ODWHUDO

GHYLDWLRQ

GXULQJ WKH YLVXDO VHJPHQW


7KH IROORZLQJ UXQZD\ DSSURDFKDLGV DQG FRQGLWLRQV
7KH

PD\ LQFUHDVH WKH FUHZ H[SRVXUH WR YLVXDO LOOXVLRQV

YLVXDO

VHJPHQW

VSHFLILF SRLQW EHFDXVH RI WHUUDLQ RU EHORZ D


DOWLWXGHKHLJKW

EHFDXVH

RI

DIWHU

LV
IXOO

GHILQHG

DV

WUDQVLWLRQ

WKH
IURP

LQVWUXPHQWV WR YLVXDO UHIHUHQFHV

*OLGH VORSH EHDP EHLQJ XQXVDEOH EH\RQG D


VSHFLILF

VHJPHQW

IORZQ

DSSURDFK

KHDY\

UDLQ

DIIHFWV

GHSWK

RYHU ZDWHU

GLVWDQFH SHUFHSWLRQ

2IIVHW ORFDOL]HU FRXUVH DQGRU

EDU

SHUFHSWLRQ

DQG

5DLQ RQ ZLQGVKLHOGV FUHDWHV D UHIUDFWLRQ


DQG WKH SHUFHSWLRQ RI EHLQJ WRR KLJK

9$6,

LI

XVHG

EHORZ

W\SLFDOO\



WKXV LQGXFLQJ D QRVH GRZQ FRUUHFWLRQ

IW

WKDW

KHLJKW DERYH WRXFKGRZQ +$7 IRU JOLGH SDWK

SODFHV

WKH

DLUFUDIW

EHORZ

WKH

GHVLUHG IOLJKW SDWK

FRUUHFWLRQV

:HDWKHU FRQGLWLRQV

,Q GD\OLJKW FRQGLWLRQV UDLQ GLPLQLVKHV


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

3UHFLSLWDWLRQV 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

WKH

UXQZD\

LV

IDUWKHU

DZD\

LQGXFLQJ

DSSDUHQW

PDNLQJ

)O\LQJ LQ KD]H FUHDWHV WKH LPSUHVVLRQ WKDW


WKH

,Q QLJKW WLPH FRQGLWLRQV UDLQ LQFUHDVHV


WKH

EULOOLDQFH
UXQZD\

RI

WKH

DSSHDUV

$/6
WR

EH

FORVHU LQGXFLQJ D SLWFK GRZQ LQSXW DQG

WKH ULVN RI ODQGLQJ VKRUW RI WKH UXQZD\

WHQGHQF\ WR VKDOORZ WKH JOLGH SDWK DQG ODQG

WKUHVKROG

ORQJ

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

ZKHQ EUHDNLQJ RXW RI WKH RYHUFDVW DW ERWK

7KH IROORZLQJ WDEOH SURYLGHV D VXPPDU\ RI

FHLOLQJ

YDULRXV IDFWRUV DQG FRQGLWLRQV WRJHWKHU ZLWK WKHLU

DQG

YLVLELOLW\

PLQLPXPV

'+

DQG

WKH

HIIHFWV RQ WKH SLORWV SHUFHSWLRQ DQG DFWLRQV

595  WKH VODQW YLVLELOLW\ PD\ QRW DOORZ VLJKW


RI WKH IDUWKHU EDU V RI WKH 9$6,3$3, WKXV
UHGXFLQJ WKH DYDLODEOH YLVXDO FOXHV IRU WKH

&RQGLWLRQ

YLVXDO VHJPHQW LQ UHGXFHG YLVLELOLW\

VQRZFRYHUHG

FORXGV

RYHUFDVW

WHUUDLQ
FUHDWH

WRJHWKHU
D

ZLWK

RU

RI WHUUDLQ IHDWXUHV VORSH DQG KHLJKW DERYH

ORQJ UXQZD\
5XQZD\ RU

3XVK

/DQG VKRUW 

KLJK

ODQG KDUG

XSKLOO VORSH
:LGH
RU

DLUFUDIW KHDGLQJ IOLJKW FUHZ VKRXOG PDLQWDLQ

VKRUW UXQZD\

WKH GULIW FRUUHFWLRQ DQG UHVLVW WKH WHQGHQF\

%HLQJ WRR

WR DOLJQ WKH DLUFUDIW KHDGLQJ ZLWK WKH UXQZD\

5XQZD\ RU

FHQWHUOLQH

3XOO

ORZ

/DQG ORQJ 
RYHUUXQ

WHUUDLQ
GRZQKLOO

5XQZD\ VXUIDFH FRQGLWLRQ HJ ZHW UXQZD\ 

%HLQJ WRR

,Q FURVVZLQG FRQGLWLRQV WKH UXQZD\ OLJKWV


DQG HQYLURQPHQW ZLOO EH DQJOHG ZLWK WKH

5HVXOW

WHUUDLQ

&URVVZLQG

$FWLRQ

1DUURZ

SKHQRPHQRQ

FDOOHG ZKLWHRXW WKDW HOLPLQDWH SHUFHSWLRQ


WHUUDLQ

3HUFHSWLRQ

VORSH

$ ZHW UXQZD\ GRHV QRW UHIOHFW OLJKW WKXV

3LWFK GRZQ

DIIHFWLQJ GHSWK SHUFHSWLRQ E\ DSSHDULQJ WR

RU

ODQG KDUG 

'XFN XQGHU

&),7

EH IDUWKHU DZD\
7KLV YLVXDO HIIHFW XVXDOO\ UHVXOWV LQ D ODWH
IODUH DQG LQ D ILUP WRXFKGRZQ
:KHQ ODQGLQJ RQ D ZHW UXQZD\ SHULSKHUDO
YLVLRQ RI UXQZD\ HGJH OLJKWV VKRXOG EH XVHG
WR

LQFUHDVH

WKH

GHSWK

SHUFHSWLRQ

DQG

%ULJKW

%HLQJ WRR

UXQZD\

FORVH

OLJKWLQJ

WRR VWHHS

/RZ LQWHQVLW\

%HLQJ IDUWKHU

OLJKWLQJ

DZD\

3XVK

/DQG VKRUW 

/DQG VKRUW 
ODQG KDUG

3XOO

/DQG ORQJ 
RYHUUXQ

WRR VKDOORZ

GHWHUPLQH WKH IODUH SRLQW


/LJKW UDLQ

%HLQJ WRR

IRJ KD]H

KLJK

3XVK

/DQG VKRUW 
ODQG KDUG

PLVW VPRNH
GXVW
(QWHULQJ IRJ

%HLQJ SLWFK

3XVK

6WHHS

VKDOORZ

XS

RYHU

JOLGH SDWK 
&),7

OD\HU
)O\LQJ LQ

%HLQJ IDUWKHU

KD]H

DZD\ WRR

3XOO

/DQG ORQJ 
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

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

+RZ WR /HVVHQ WKH (IIHFWV RI 9LVXDO


,OOXVLRQV "

5XQZD\ DSSURDFK DQG YLVXDO DLGV

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

+D]DUG $ZDUHQHVV

7\SH RI DSSURDFK OLJKWLQJ V\VWHP DQG

9$6, RU 3$3, DYDLODELOLW\

7HUUDLQ DZDUHQHVV

2SHUDWRUV VKRXOG DVVHVV WKHLU H[SRVXUH WR YLVXDO


LOOXVLRQV LQ WKHLU RSHUDWLQJ HQYLURQPHQW LH RYHU WKH
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

3HUFHSWLRQ RI KHLJKWV  GHSWK GLVWDQFHV DQG

FUHZ IURP FRUUHFWO\ SHUFHLYLQJ WKH ULVLQJ WHUUDLQ

DQJOHV

)O\LQJ WHFKQLTXHV

$VVHVVPHQW RI DLUFUDIW ODWHUDO SRVLWLRQ DQG JOLGH


SDWK

7\SH RI DSSURDFK
7KH DZDUHQHVV RI YLVXDO LOOXVLRQV FDQ EH VXSSRUWHG
DQGRU

$W QLJKW ZKHQ DQ LQVWUXPHQW DSSURDFK LV DYDLODEOH

KD]DUGUXQZD\V LQ WKH RSHUDWRUV 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

E\

DQ

LGHQWLILFDWLRQ

RI

DOO

KD]DUGDLUSRUWV

SUHYDLOLQJ KD]DUGV

+D]DUG $VVHVVPHQW

DURXQG EULHILQJ E\ UHYLHZLQJ WKH IROORZLQJ HOHPHQWV

ZLWK

XVH

RI

9$6,

3$3,

1RQSUHFLVLRQ DSSURDFK VXSSRUWHG E\ D 9$6, 


3$3, DV DYDLODEOH 

LQGLYLGXDO DSSURDFK GXULQJ WKH DSSURDFK DQG JR

DSSURDFK

DV DYDLODEOH IRU WKH YLVXDO VHJPHQW RU

$SSURDFK KD]DUGV VKRXOG EH DVVHVVHG IRU HDFK

,/6

2Q D QRQSUHFLVLRQ DSSURDFK GR QRW GHVFHQG EHORZ

&HLOLQJ DQG YLVLELOLW\ FRQGLWLRQV

WKH

0'$ +

EHIRUH

GHVFHQWGHFLVLRQ

:HDWKHU

YLVXDO

SRLQW

UHIHUHQFHV

UHDFKLQJ
9'3 

KDYH

EHHQ

HYHQ

WKH
LI

YLVXDO

DGHTXDWH

DFTXLUHG

EHIRUH

ZLQG WXUEXOHQFH

UHDFKLQJ WKH 9'3

UDLQ VKRZHUV DQGRU

7R SUHYHQW JRLQJ WRR HDUO\ WR YLVXDO UHIHUHQFHV DQG

IRJ RU VPRNH SDWFKHV

&UHZ

H[SHULHQFH

ZLWK

GHVFHQGLQJ SUHPDWXUHO\ EHORZ WKH 0'$ +  WKH 3)


VKRXOG
DLUSRUW

DQG

DLUSRUW

VXUURXQGLQJ WHUUDLQ DQGRU

VSHFLILF

DLUSRUW

REVWUXFWLRQV

DQG

WR

LQVWUXPHQWV

XQWLO

'XULQJ D YLVXDO RU FLUFOLQJ DSSURDFK LI WKH 9$6, 

UXQZD\

EODFNKROH

UHIHUHQFH

DJDLQVW YLVXDO LOOXVLRQV LQ KD]DUG FRQGLWLRQV

HQYLURQPHQW

PDLQWDLQ

UHDFKLQJ WKH 9'3 7KLV SURYLGHV IXUWKHU SURWHFWLRQ

3$3, LQGLFDWHV EHORZ JOLGH VORSH OHYHO RII RU FOLPE

KD]DUGV

RIIDLUSRUW

XQWLO WKH 9$6,3$3, VKRZV RQJOLGHSDWK

OLJKW

SDWWHUQV 

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&UHZ FRRUGLQDWLRQ

)OLJKW SDWK PRQLWRULQJ


5HVLVW WKH WHQGHQF\ WR SLWFK GRZQ DQG GXFN XQGHU

7KH

WKLV

PRQLWRULQJ

LV

WKH

JUHDWHVW

FKDOOHQJH

GXULQJ

WKH

YLVXDO

VHJPHQW RI WKH DSSURDFK WKLV LQFOXGHV

GHILQHG

WDVN

RI

VKDULQJ

YLVXDO

DQG

HQVXUHV

LQVWUXPHQW

FRQWLQXHG
UHIHUHQFHV

WKURXJKRXW WKH WUDQVLWLRQ WR YLVXDO UHIHUHQFHV DQG


WKHUHDIWHU LH GXULQJ D YLVXDO DSSURDFK RU GXULQJ

WKH YLVXDO VHJPHQW RI DQ LQVWUXPHQW DSSURDFK 

3LWFKLQJ GRZQ LQWR WKH DSSURDFK OLJKW LQ DQ


DWWHPSW WR VHH WKH UXQZD\ GXULQJ D SUHFLVLRQ

,Q NQRZQ RU DQWLFLSDWHG KD]DUG FRQGLWLRQV WKH 31)

DSSURDFK RU

VKRXOG UHLQIRUFH KLV  KHU PRQLWRULQJ RI LQVWUXPHQW

'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


GHYLDWLRQ

GXULQJ

WKH

YLVXDO

VHJPHQW

RI

DQ

YLVXDO DSSURDFKHV DQG VKRXOG EH FRQWLQXHG GXULQJ

,/6

WKH

DSSURDFK 

YLVXDO

VHJPHQW

LQFOXGLQJ

JOLGH

VORSH

GHYLDWLRQ GXULQJ D QRQSUHFLVLRQ DSSURDFK 

0RQLWRU WKH 9$6,3$3, ZKHQHYHU DYDLODEOH WKLV


SURYLGHV

DGGLWLRQDO

WHQGHQF\

WR

YLVXDO

LQFUHDVH

RU

FXHV

WR

GHFUHDVH

UHVLVW
WKH

UDWH

WKH

,Q

RI

FDVH

RI

JRDURXQG

VSHFLILF

H[FHVVLYH

SDUDPHWHUGHYLDWLRQ FDOORXWV VKRXOG EH FRQVLGHUHG

GHVFHQW

DV LQGLFDWHG LQ 623V 

2Q UXQZD\V HTXLSSHG ZLWK DQ $/6),, DSSURDFK

7\SLFDO &UHZ $FWLRQV DQG 5HVXOWV

OLJKWLQJ V\VWHP EH DZDUH RI WKH WZR URZV RI UHG


OLJKWV DOLJQHG ZLWK WKH WRXFKGRZQ ]RQH OLJKWV DV DQ
DGGLWLRQDO VDIHJXDUG DJDLQVW GXFNLQJ 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 

0DLQWDLQ LQVWUXPHQWV VFDQ GRZQ WR WRXFKGRZQ

&URVVFKHFN

8QFRQVFLRXV

PRGLILFDWLRQ

RI

WKH

DLUFUDIW

WUDMHFWRU\ WR NHHS D FRQVWDQW SHUFHSWLRQ RI YLVXDO


UHIHUHQFHV

LQVWUXPHQW

LQGLFDWLRQV

DJDLQVW

RXWVLGH YLVXDO FXHV WR FRQILUP JOLGH SDWK

1DWXUDO WHQGHQF\ WR GHVFHQG EHORZ WKH JOLGH


VORSH RU WKH

8VH DQ ,/6 DSSURDFK ZKHQHYHU DYDLODEOH DQG

8VH

LQLWLDO

JOLGH

SDWK

LH

GXFNLQJ

XQGHU 

9$6,  3$3, LI DYDLODEOH GRZQ WR UXQZD\

,QDELOLW\

WR

GHVFHQGLQJ

WKUHVKROG RQO\ ZKHQ XVLQJ D EDU 9$6, RU

DUUHVW
EHORZ

WKH

UDWH

WKH

RI

GHVFHQW

LQWHQGHG

JOLGH

DIWHU
SDWK

LH ODWH UHFRJQLWLRQ RI WKH IODWWHQLQJ RI UXQZD\

D 3$3,

LH

GHYLDWLRQ GXULQJ DQ ,/6 DSSURDFK RU YHUWLFDO VSHHG

DQG UXQZD\ HQYLURQPHQW 

8VH DYDLODEOH UHIHUHQFHV DQG LQGLFDWLRQV VXFK

DV WKH 1' H[WHQGHG UXQZD\ FHQWHUOLQH WKH ,/6

$EVHQFH RI UHIHUHQFH WR LQVWUXPHQWV WR VXSSRUW


WKH YLVXDO VHJPHQW

'0( RU 925'0( GLVWDQFH DQG WKH DOWLWXGH

DERYH DLUILHOG HOHYDWLRQ WR FRQILUP WKH JOLGH SDWK


EDVHG RQ D W\SLFDOO\  IWSHUQP DSSURDFK

)DLOXUH

WR

GHWHFW

WKH

GHWHULRUDWLRQ

RI

YLVXDO

UHIHUHQFHV DQG

JUDGLHQW

)DLOXUH WR PRQLWRU WKH LQVWUXPHQWV DQG WKH IOLJKW


SDWK ZKLOH ERWK FUHZPHPEHUV DUH LQYROYHG LQ
WKH LGHQWLILFDWLRQ RI YLVXDO UHIHUHQFHV

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ 5HIHUHQFHV

6XPPDU\ RI NH\ SRLQWV


7KH

IROORZLQJ

FULWLFDO

NH\SRLQWV

QHHG

WR

EH

'RF  

HPSKDVL]HG

$ZDUHQHVV RI ZHDWKHU IDFWRUV

$ZDUHQHVV RI VXUURXQGLQJ WHUUDLQ DQG REVWDFOHV

$ZDUHQHVV

DQG

DVVHVVPHQW

)$5  7DNHRII DQG ODQGLQJ XQGHU ,)5


3DUDJUDSK E  /RVV RI YLVXDO UHIHUHQFHV

RI

-$5236

DSSURDFK

-$5236

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 

$VVRFLDWHG %ULHILQJ 1RWHV


7KH IROORZLQJ %ULHILQJ 1RWHV FRPSOHPHQW WKH DERYH
GLVFXVVLRQ RQ WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV
DQG RQ YLVXDO LOOXVLRQV

 $SSURDFK DQG *RDURXQG %ULHILQJV

 7HUUDLQ $ZDUHQHVV


:KHQ DQG +RZ "

 $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

 )O\LQJ 9LVXDO $SSURDFKHV

6XESDUW

6XESDUW

2SHUDWLRQV    7HUPLQRORJ\

$GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ IRU

$OO

:HDWKHU

0LQLPD

LOOXVLRQV VXFK DV EODFN KROH 

2SHUDWLRQV   $HURGURPH 2SHUDWLQJ

KD]DUGV LH FRQGLWLRQV WKDW PD\ UHVXOW LQ YLVXDO

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO

9LVXDO ,OOXVLRQV $ZDUHQHVV


3DJH 

$OO

:HDWKHU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

:LQG6KHDU$ZDUHQHVV
'HILQLQJ :LQG 6KHDU

,QWURGXFWLRQ

)OLJKW FUHZ DZDUHQHVV DQG DOHUWQHVV DUH NH\ IDFWRUV


LQ WKH VXFFHVVIXO DSSOLFDWLRQ RI ZLQG VKHDU
DYRLGDQFH DQG HVFDSH  UHFRYHU\ WHFKQLTXHV
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WUDLQLQJ
JXLGHOLQHV IRU DLUFUDIW RSHUDWLRQ LQ IRUHFDVW RU
VXVSHFWHG ZLQG VKHDU RU GRZQEXUVW FRQGLWLRQV

:LQG VKHDU LV GHILQHG DV D VXGGHQ FKDQJH RI ZLQG


YHORFLW\ DQGRU GLUHFWLRQ
7ZR W\SHV ZLQG VKHDU FDQ EH HQFRXQWHUHG
x 9HUWLFDO ZLQG VKHDU
 YHUWLFDO YDULDWLRQV RI WKH KRUL]RQWDO ZLQG
FRPSRQHQW UHVXOWLQJ LQ WXUEXOHQFH WKDW PD\
DIIHFW WKH DLUFUDIW DLUVSHHG ZKHQ FOLPELQJ RU
GHVFHQGLQJ WKURXJK WKH ZLQG VKHDU OD\HU
 YHUWLFDO YDULDWLRQV RI WKH KRUL]RQWDO ZLQG
FRPSRQHQW RI  NWSHU IW WR
 NWSHU IW DUH W\SLFDO YDOXHV EXW D
YHUWLFDO ZLQG VKHDU PD\ UHDFK XS WR
 NWSHU IW
x +RUL]RQWDO ZLQG VKHDU
 KRUL]RQWDO YDULDWLRQV RI WKH ZLQG FRPSRQHQW
HJ GHFUHDVLQJ KHDG ZLQG RU LQFUHDVLQJ
WDLO ZLQG RU D VKLIW IURP D KHDG ZLQG WR D WDLO
ZLQG  PD\ DIIHFW WKH DLUFUDIW LQ OHYHO IOLJKW RU
ZKLOH FOLPELQJ RU GHVFHQGLQJ
 KRUL]RQWDO YDULDWLRQV RI ZLQG FRPSRQHQW
PD\ UHDFK XS WR  NWSHUQDXWLFDO PLOH
:LQG VKHDU FRQGLWLRQV XVXDOO\ DUH DVVRFLDWHG ZLWK
WKH IROORZLQJ ZHDWKHU VLWXDWLRQV
x -HW VWUHDPV
x 0RXQWDLQ ZDYHV
x )URQWDO VXUIDFHV
x 7KXQGHUVWRUPV DQG FRQYHFWLYH FORXGV DQG
x 0LFUREXUVWV

6WDWLVWLFDO 'DWD

$GYHUVH ZHDWKHU RWKHU WKDQ ORZ YLVLELOLW\ DQG


UXQZD\ FRQGLWLRQ LV D FLUFXPVWDQWLDO IDFWRU LQ QHDUO\
  RI DSSURDFKDQGODQGLQJ DFFLGHQWV
$GYHUVH ZLQG FRQGLWLRQV LH VWURQJ FURVV ZLQGV
WDLOZLQG DQG ZLQG VKHDU DUH LQYROYHG LQ PRUH WKDQ
  RI DSSURDFKDQGODQGLQJ DFFLGHQWV DQG LQ
  RI HYHQWV LQYROYLQJ &),7
:LQG VKHDU LV WKH SULPDU\ FDXVDO IDFWRU LQ   RI
DSSURDFKDQGODQGLQJ DFFLGHQWV DQG LV WKH  FDXVH
RI IDWDOLWLHV
7KHVH VWDWLVWLFDO GDWD DUH VXPPDUL]HG LQ 7DEOH 
WK

)DFWRU

 RI (YHQWV

$GYHUVH ZHDWKHU
$GYHUVH ZLQG DOO FRQGLWLRQV
:LQG VKHDU

 
 


7DEOH 
:HDWKHU IDFWRUV LQ $SSURDFKDQG/DQGLQJ $FFLGHQWV

:LQG 6KHDU $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

0LFUREXUVWV FRPELQH WZR GLVWLQFW WKUHDWV WR DYLDWLRQ


VDIHW\

9LVXDO REVHUYDWLRQ

7KH

GRZQEXUVW

SDUW

UHVXOWLQJ

LQ

ZKLUOZLQGV FRQWDLQLQJ GXVW DQG VWDQG  RU

VWURQJ

DQ\

GRZQGUDIWV UHDFKLQJ XS WR  NW RI YHUWLFDO

7KH RXWEXUVW SDUW UHVXOWLQJ LQ ODUJH KRUL]RQWDO

WR  NW 

ORFDO

DLU

RU

WDLO

ZLQG

FRPSRQHQW

DORIW

DV

DYDLODEOH DQG WKH VXUIDFH KHDG RU WDLO ZLQG


FRPSRQHQW LQGLFDWHV WKH SRWHQWLDO DQG OLNHO\
GHJUHH RI YHUWLFDO ZLQG VKHDU

DUHDV RI SRWHQWLDO RU REVHUYHG ZLQG VKHDU


:HDWKHU UHSRUWV DQG IRUHFDVW
OHYHO

2Q DSSURDFK D FRPSDULVRQ RI WKH KHDG


ZLQG

7KH IROORZLQJ LQIRUPDWLRQ VKRXOG EH XVHG WR DYRLG

ORZ

VWURQJ

2QERDUG ZLQG FRPSRQHQW DQG JURXQG VSHHG

:LQG 6KHDU $YRLGDQFH

7KH

RI

PRQLWRULQJ

ZLQG WR WDLO ZLQG KRUL]RQWDO ZLQGV PD\ UHDFK XS

HYLGHQFH

RI SRWHQWLDO RU H[LVWLQJ ZLQG VKHDU

ZLQG VKHDU DQG ZLQG FRPSRQHQW VKLIW IURP KHDG

RWKHU

RXWIORZ QHDU WKH VXUIDFH RIWHQ DUH LQGLFDWLRQ

YHORFLW\  DQG

%ORZLQJ GXVW ULQJV RI GXVW GXVW GHYLOV LH

ZLQG

VKHDU

DOHUW

V\VWHP

2QERDUG ZHDWKHU UDGDU DQG

2QERDUG SUHGLFWLYH ZLQG VKHDU 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

HYHU\



PLQXWH
VHFRQGV

SHULRG
WR

DQG

WKH

FRPSDUHG

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

:LQG 6KHDU 5HFRJQLWLRQ

5DGDU

7':5 DOORZV WR GHWHFW DSSURDFKLQJ ZLQG


VKHDU DUHDV DQG WKXV WR SURYLGH SLORWV ZLWK
PRUH

DGYDQFH

ZDUQLQJ

RI

ZLQG

7LPHO\ UHFRJQLWLRQ RI D ZLQG VKHDU FRQGLWLRQ LV YLWDO

VKHDU

IRU WKH VXFFHVVIXO LPSOHPHQWDWLRQ RI WKH ZLQG VKHDU

KD]DUG

UHFRYHU\HVFDSH SURFHGXUH

3LORWV 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

GRZQGUDIW

DVVHVVPHQW

XSGUDIW

RI



IWPQ

EHORZ

 IW DERYH DLUILHOG HOHYDWLRQ VKRXOG EH

DSSURDFK
RI

RU

WKH

JRDURXQG
DLUFUDIW

SDUDPHWHUV DQG DFFHOHUDWLRQV 

FDXVH IRU FDXWLRQ

:LQG 6KHDU $ZDUHQHVV


3DJH 

EDVHG

SHUIRUPDQFH

RQ

WKH

IOLJKW

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH IROORZLQJ GHYLDWLRQV VKRXOG EH FRQVLGHUHG DV

,I

LQGLFDWLRQV RI D SRVVLEOH ZLQG VKHDU FRQGLWLRQ

HJ )' QRW DYDLODEOH D VLPLODU UHFRYHU\ WHFKQLTXH

,QGLFDWHG DLUVSHHG YDULDWLRQV LQ H[FHVV RI  NW

*URXQG VSHHG YDULDWLRQV GHFUHDVLQJ KHDG ZLQG

WKH

)'

ZLQGVKHDU

JXLGDQFH

LV

QRW

DYDLODEOH

LV UHFRPPHQGHG DQG SXEOLVKHG LQ WKH DSSOLFDEOH


)&20

RU LQFUHDVLQJ WDLO ZLQG RU VKLIW IURP KHDG ZLQG WR

9HUWLFDO VSHHG H[FXUVLRQV RI  IWPQ

5HDFWLYH DQG 3UHGLFWLYH :LQG 6KHDU


:DUQLQJV

3LWFK DWWLWXGH H[FXUVLRQV RI  GHJUHHV

,Q DGGLWLRQ WR WKH )' ZLQGVKHDUVXUYLYDO JXLGDQFH

*OLGH VORSH GHYLDWLRQ RI  GRW

+HDGLQJ YDULDWLRQV RI  GHJUHHV

8QXVXDO DXWRWKURWWOH DFWLYLW\ RU WKURWWOH OHYHUV

JXLGDQFH DUH DFWLYDWHG RQO\ ZKHQ D ZLQG VKHDU

SRVLWLRQ

FRQGLWLRQ LV GHWHFWHG EDVHG RQ WKH DVVHVVPHQW RI

WDLO ZLQG 

DQ RSWLRQDO :,1'6+($5 ZDUQLQJ LV DYDLODEOH RQ


PRVW DLUFUDIW PRGHOV
7KH

ZLQG

DLUFUDIW

VKHDU

ZDUQLQJ

SHUIRUPDQFH

DQG

IOLJKW

WKH

)'

VXUYLYDO

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

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

QRW

ODVW

LQFRUSRUDWH

JHQHUDWLRQ

DQ\

RI

IRUZDUG

ZHDWKHU

ORRNLQJ

UDGDUV

DQG

IHDWXUHV

WKH FDSDELOLW\ WR GHWHFW ZLQG VKHDU DUHDV DKHDG RI


7KH )' ZLQG VKHDU UHFRYHU\ JXLGDQFH DWWHPSWV WR

WKH DLUFUDIW

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
x

$GMXVW WKH SLWFK DWWLWXGH DV WKH YHUWLFDO VSHHG

3UHGLFWLYH ZLQG VKHDU V\VWHPV SURYLGH W\SLFDOO\ D

GHFUHDVHV WRZDUGV ]HUR

RQHPLQXWH DGYDQFH ZDUQLQJ

0DLQWDLQ D VOLJKWO\ SRVLWLYH YHUWLFDO VSHHG XQWLO

3UHGLFWLYH ZLQG VKHDU V\VWHPV JHQHUDWH WKUHH OHYHOV

DLUVSHHG GHFUHDVHV WR WKH ERXQGDU\ RI WKH VWLFN


VKDNHU

LQWHUPLWWHQW

VWLFN

VKDNHU

RI ZLQG VKHDU DOHUW

DFWLYDWLRQ 

WKHQ

0DLQWDLQ WKH DLUVSHHG VOLJKWO\ DERYH WKH VWLFN


VKDNHU ERXQGDU\ DOORZLQJ DQ DOWLWXGH ORVV DV

$GYLVRU\ DOHUW YRLFH PHVVDJHV

$PEHU FDXWLRQ :6 $+($'  RU

5HG ZDUQLQJ :6 $+($' 

ORQJ DV UHTXLUHG IRU PDLQWDLQLQJ WKH VWLFNVKDNHU


VSHHG
7KH ZLQG VKHDU JXLGDQFH LV DYDLODEOH DW WDNHRII LQ

&RORUHG SDWWHUQV DQG LFRQV DUH GLVSOD\HG RQ WKH

DSSURDFK

ZHDWKHU UDGDU GLVSOD\ 1' WR LQGLFDWH DUHDV RI

DQG

GXULQJ

JRDURXQG

ZKHQ

EHORZ

 IW 5$

ZLQGVKHDU DFWLYLW\

7KH SLWFK DWWLWXGH GHPDQG LV OLPLWHG E\ WKH VWDOO


SURWHFWLRQ

GXULQJ

DOO

WKH

SKDVHV

RI

WKH

DERYH

VXUYLYDO VWUDWHJ\

:LQG 6KHDU $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

:LQG 6KHDU $ZDUHQHVV

7KH ZLQG VKHDU VXUYLYDO  HVFDSH SURFHGXUH VKRXOG

7KH IROORZLQJ DUH RSSRUWXQLWLHV WR HQKDQFH

ZLQG VKHDU SURILOHV UHFRUGHG GXULQJ DFWXDO ZLQG

EH WUDLQHG LQ D IXOOIOLJKW VLPXODWRU XVLQJ UHDOLVWLF


VKHDU HQFRXQWHUV DV LOOXVWUDWHG E\ )LJXUH  

:LQG VKHDU DZDUHQHVV DQG

2SHUDWLRQDO UHFRPPHQGDWLRQV DQG SURFHGXUHV

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


6WDQGDUG

RSHUDWLQJ

HPSKDVL]H

WKH

SURFHGXUHV

IROORZLQJ

623V

VKRXOG

ZLQGVKHDUDZDUHQHVV

LWHPV

:LQG VKHDU DZDUHQHVV DQG DYRLGDQFH 

7DNHRII

GHSDUWXUH

DQG

DSSURDFK

JRDURXQG EULHILQJV DQG


x

$SSURDFK KD]DUGV DZDUHQHVV


3KRWR &UHGLW  6)(1$  6H[WDQW $YLRQLFV

:LQG VKHDU UHFRJQLWLRQ

7DVN VKDULQJ IRU HIIHFWLYH FURVVFKHFN DQG


EDFNXS

SDUWLFXODUO\

IRU

)LJXUH 

H[FHVVLYH

:LQG 6KHDU 3URILOH  7\SLFDO

SDUDPHWHUGHYLDWLRQV

(QHUJ\ PDQDJHPHQW GXULQJ DSSURDFK DQG

(OHPHQWV

RI

VWDELOL]HG

DSSURDFK

&RFNSLW 3UHSDUDWLRQ 'HSDUWXUH %ULHILQJ

DQG

DSSURDFK JDWHV

)OLJKW FUHZ VKRXOG FRQVLGHU DOO DYDLODEOH ZLQG VKHDU


:LQG VKHDU VXUYLYDO  HVFDSH SURFHGXUH

DZDUHQHVVLWHPV DQG

5HDGLQHVV DQG FRPPLWPHQW WR UHVSRQG WR

D UHDFWLYH RU SUHGLFWLYH ZLQG VKHDU DGYLVRU\

RQ

RU ZDUQLQJ DV DYDLODEOH ZLQG VKHDU VXUYLYDO


 HVFDSH 

7UDLQLQJ
$

ZLQG

VKHDU

DZDUHQHVV

SURJUDP

VKRXOG

$VVHVV WKH FRQGLWLRQV IRU D VDIH WDNHRII EDVHG

EH

0RVW UHFHQW ZHDWKHU UHSRUWV DQG IRUHFDVW

9LVXDO REVHUYDWLRQV DQG

&UHZ

H[SHULHQFH

GHYHORSHG DQG LPSOHPHQWHG EDVHG RQ WKH FRQWHQWV

HQYLURQPHQW

RI

FRQGLWLRQV RU

7KH LQGXVWU\GHYHORSHG :LQG 6KHDU (GXFDWLRQ

7KH

)OLJKW

6DIHW\

)RXQGDWLRQGHYHORSHG

:LQGVKHDU 7UDLQLQJ 3DFNDJH

:LQG 6KHDU $ZDUHQHVV


3DJH 

WKH

ZLWK

WKH

DLUSRUW

SUHYDLOLQJ

ZHDWKHU

'HOD\ WKH WDNHRII XQWLO FRQGLWLRQV LPSURYH DV


ZDUUDQWHG

DQG 7UDLQLQJ $LG DQG

DQG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7DNHRII DQG LQLWLDO FOLPE

IROORZ WKH IOLJKW GLUHFWRU SLWFK RUGHUV ZLQG


VKHDU VXUYLYDO JXLGDQFH RU VHW WKH UHTXLUHG

,I

ZLQG

VKHDU

FRQGLWLRQV

DUH

VXVSHFWHG

SLWFK DWWLWXGH LI )' LV QRW DYDLODEOH DV

GXULQJ

UHFRPPHQGHG LQ WKH DSSOLFDEOH )&20 

WDNHRII WKH IOLJKW FUHZ VKRXOG

6HOHFW WKH PRVW IDYRUDEOH UXQZD\ FRQVLGHULQJ

WKH ORFDWLRQ RI WKH OLNHO\ ZLQG VKHDU  GRZQEXUVW

6HOHFW

WKH

FRPSDWLEOH

PLQLPXP
ZLWK

IODSV

WDNHRII

FRQILJXUDWLRQ

UHTXLUHPHQWV

'XULQJ LQLWLDO FOLPE


WKH

DXWRWKURWWOHDXWRWKUXVW

OHYHUV WR WKH PD[LPXP WDNHRII WKUXVW

PD[LPL]H WKH FOLPEJUDGLHQW FDSDELOLW\

GLVFRQQHFW

$7+5 DQG PDLQWDLQ RU VHW WKH WKURWWOH

WR

8VH WKH ZHDWKHU UDGDU RU WKH SUHGLFWLYH ZLQG

LI WKH DXWRSLORW $3 LV HQJDJHG NHHS WKH


$3 HQJDJHG

VKHDU V\VWHP DV DYDLODEOH EHIRUH FRPPHQFLQJ


WKH WDNHRII UROO WR HQVXUH WKDW WKH IOLJKW SDWK LV

RU

FOHDU RI SRWHQWLDO KD]DUG DUHDV

IROORZ WKH )' SLWFK RUGHUV

6HOHFW WKH PD[LPXP WDNHRII WKUXVW

$IWHU WULJJHULQJ WKH JR OHYHUV VHWWLQJ 72*$ 

VHW

VHOHFW WKH IOLJKW SDWK YHFWRU GLVSOD\ RQ WKH 31)

DV UHFRPPHQGHG LQ WKH DSSOLFDEOH )&20 

RU
WKH

UHTXLUHG

SLWFK

DWWLWXGH

1' DV DYDLODEOH WR REWDLQ D GLUHFW YLVXDO FXH RI


WKH FOLPE IOLJKW SDWK DQJOH DQG

XQOHVV

&ORVHO\ PRQLWRU WKH DLUVSHHG DQG VSHHG WUHQG


LPSHQGLQJ ZLQG VKHDU




DSSO\

WKH

IROORZLQJ

UHMHFW

WKH

WDNHRII

RQO\

WDUJHW

9

RFFXU

DQG

LI

LI

XQDFFHSWDEOH

QRW

WKHUH

LV

H[FHHGLQJ

GLVFRQQHFW
$7+5

VXIILFLHQW

LQWHUPLWWHQW

VWLFN

GR

QRW

FKDQJH

WKH

IODSV

DQG

JHDU

FRQGLWLRQ

ZKHQ

RXW

RI

WKH

ZLQG

VKHDU

FRQGLWLRQ

LQFUHDVH WKH DLUVSHHG ZKHQ D SRVLWLYH FOLPE


WKH
DQG

LV

DXWRWKURWWOHDXWRWKUXVW
PDLQWDLQ

RU

VHW

UHWUDFW

D QRUPDO FOLPE SURILOH

WKUXVW
URWDWH QRUPDOO\ DW 9

FRQILUPHG

ODQGLQJ

JHDU

DQG

IODSVVODWV DV DSSOLFDEOH  DQG WKHQ UHFRYHU

WKH

WKURWWOHWKUXVW OHYHUV WR WKH PD[LPXP WDNHRII

ERXQGDU\

FRQILJXUDWLRQ XQWLO RXW RI WKH ZLQG VKHDU

$IWHU 9

DOORZ DLUVSHHG WR GHFUHDVH WR VWLFN VKDNHU

FRQYHQWLRQDO DLUFUDIW PRGHOV

UXQZD\ UHPDLQLQJ WR VWRS WKH DLUSODQH

REVWDFOH

UHIHUHQFH WR VWLFN VKDNHU DSSOLHV RQO\ WR

DLUVSHHG YDULDWLRQV
WKH

IRU

WUHQG

UHFRYHU\

%HIRUH 9

UHTXLUHG

VKDNHU DFWLYDWLRQ ZKLOH PRQLWRULQJ VSHHG

WHFKQLTXHV ZLWKRXW GHOD\

LV

FORVHO\ PRQLWRU WKH DLUVSHHG VSHHG WUHQG

DFWLYDWLRQ

,I ZLQG VKHDU LV HQFRXQWHUHG GXULQJ WDNHRII UROO RU


FOLPE

WXUQ

DQG IOLJKW SDWK DQJOH DV DYDLODEOH 

5HFRYHU\ WHFKQLTXH IRU ZLQG VKHDU HQFRXQWHU


GXULQJ WDNHRII
LQLWLDO

FOHDUDQFH

GXULQJ WKH WDNHRII UROO WR GHWHFW DQ\ HYLGHQFH RI

GXULQJ

OHYHO WKH ZLQJV WR PD[LPL]H FOLPE JUDGLHQW

5 DQG

:LQG 6KHDU $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

'HVFHQW

3UHSDUDWLRQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFK

DQG

*RDURXQG %ULHILQJ

6HOHFW WKH PRVW IDYRUDEOH UXQZD\ FRQVLGHULQJ

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

$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 

([SHFWHG DUULYDO URXWH VWDQGDUG DUULYDO

DQJOH

3UHYDLOLQJ ZHDWKHU

5HSRUWV RI SRWHQWLDO ORZ OHYHO ZLQG VKHDU

6HOHFW

OHVV

PD[LPL]H

WKH

DSSURDFK

RU

GXULQJ

WKH

WKDQ

WKH

IXOO

IODSV

FOLPEJUDGLHQW

IRU

ODQGLQJ

FDSDELOLW\

WR
DQG

DGMXVW WKH ILQDO DSSURDFK VSHHG DFFRUGLQJO\

,I DQ ,/6 LV DYDLODEOH HQJDJH WKH DXWRSLORW IRU D


PRUH DFFXUDWH DSSURDFK WUDFNLQJ DQG IRU WDNLQJ
EHQHILW RI WKH JOLGH VORSH H[FHVVLYHGHYLDWLRQ

8VH RI DXWRPDWLRQ
'LVFXVV

WKH

LQWHQGHG

XVH

RI

DXWRPDWLRQ

ZDUQLQJ

IRU

YHUWLFDO DQG ODWHUDO QDYLJDWLRQ DV D IXQFWLRQ RI

WKH VXVSHFWHG RU IRUHFDVW ZLQG VKHDU FRQGLWLRQV

%HIRUH

FRQGXFWLQJ

DQ

$ VSHHG LQFUHPHQW LV UHFRPPHQGHG XVXDOO\ XS


WR  NW WR  NW EDVHG RQ WKH DQWLFLSDWHG ZLQG

DSSURDFK

LQ

IRUHFDVW

VKHDU YDOXH 

RU

VXVSHFWHG ZLQG VKHDU FRQGLWLRQV WKH IOLJKW FUHZ

VKRXOG

WDLO ZLQG FRPSRQHQW WR DVVHVV WKH SRWHQWLDO DQG

ODQGLQJ EDVHG RQ

OLNHO\ GHJUHH RI YHUWLFDO ZLQG VKHDU

0RVW UHFHQW ZHDWKHU UHSRUWV DQG IRUHFDVW

9LVXDO REVHUYDWLRQV DQG

&UHZ

H[SHULHQFH
DQG

ZLWK

WKH

WKH

DLUSRUW

SUHYDLOLQJ

ZHDWKHU

HYLGHQFH RI LPSHQGLQJ ZLQG VKHDU


0LFUREXUVWV DUH FKDUDFWHUL]HG E\ D VLJQLILFDQW
LQFUHDVH RI WKH KHDGZLQG FRPSRQHQW SUHFHGLQJ
D

'HOD\ WKH DSSURDFK DQG ODQGLQJ XQWLO FRQGLWLRQV

SLORWV

UHSRUWV

FKDQJH
ZLQG

WR

VKHDU

D
LV

WDLOZLQG

FRPSRQHQW

DQWLFLSDWHG

FORVHO\

PRQLWRU WKH JURXQG VSHHG HQKDQFHG ZLQG VKHDU

:KHQ GRZQEXUVW  ZLQG VKHDU FRQGLWLRQV DUH


RQ

VXGGHQ

ZKHQHYHU

LPSURYH RU GLYHUW WR D VXLWDEOH DLUSRUW

EDVHG

&ORVHO\ PRQLWRU WKH DLUVSHHG VSHHG WUHQG DQG


JURXQG VSHHG GXULQJ WKH DSSURDFK WR GHWHFW DQ\

FRQGLWLRQV

DQWLFLSDWHG

&RPSDUH WKH KHDG ZLQG FRPSRQHQW RU WDLO ZLQG


FRPSRQHQW DORIW DQG WKH VXUIDFH KHDG ZLQG RU

$VVHVV WKH FRQGLWLRQV IRU D VDIH DSSURDFK DQG

HQYLURQPHQW

6HOHFW D ILQDO DSSURDFK VSHHG EDVHG RQ WKH


UHSRUWHG VXUIDFH ZLQG

'HVFHQW DQG $SSURDFK

GXULQJ

UHFRYHU\HVFDSH PDQHXYHU 

//:$6 ZDUQLQJV 7'56 GDWD 3,5(36 

6HOHFW WKH IOLJKW SDWK YHFWRU GLVSOD\ RQ WKH 31)


1' WR REWDLQ D GLUHFW YLVXDO FXH RI WKH IOLJKW SDWK

67$5  RU PRUH GLUHFW UDGDU YHFWRUV 

8VH WKH ZHDWKHU UDGDU RU WKH SUHGLFWLYH ZLQG


VKHDU V\VWHP DV DYDLODEOH GXULQJ WKH DSSURDFK

DZDUHQHVV

IURP

,I

SUHFHGLQJ DLUFUDIW RU EDVHG RQ DQ DOHUW LVVXHG E\

JURXQG

VSHHG

GHFUHDVHV

LH

LQFUHDVLQJ

KHDG ZLQG  PDLQWDLQ D JURXQG VSHHG QRW ORZHU

WKH DLUSRUW ORZ OHYHO ZLQG VKHDU DOHUW V\VWHP

WKDQ 9

//:$6  WKH ODQGLQJ VKRXOG EH GHOD\HG RU WKH

$33

 NW WR PDLQWDLQ WKH DLUFUDIW

HQHUJ\ OHYHO LQ FDVH RI VXGGHQ KHDG ZLQG WR WDLO

DLUFUDIW VKRXOG GLYHUW WR WKH GHVWLQDWLRQ DOWHUQDWH

ZLQG FKDQJH

DLUSRUW

:LQG 6KHDU $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)DFWRUV $IIHFWLQJ :LQG 6KHDU $ZDUHQHVV

%H DOHUW WR UHVSRQG ZLWKRXW GHOD\ WR 

$Q\

SUHGLFWLYH

$+($'

ZLQGVKHDU

FDXWLRQ

RU

:6

DGYLVRU\

$+($'

7KH IROORZLQJ IDFWRUV PD\ DIIHFW WKH ZLQG VKHDU

:6

DZDUHQHVV DQG DYRLGDQFH RU WKH VXUYLYDO FDSDELOLW\

ZDUQLQJ

DQGRU

3UHYHQWLRQ VWUDWHJLHV DQG OLQHVRIGHIHQVH VKRXOG


)RU

EH GHYHORSHG WR DGGUHVV WKHVH DGYHUVH

$ UHDFWLYH :,1'6+($5 ZDUQLQJ

IDFWRUV

DV SRVVLEOH DQG SUDFWLFDO 

UHVSHFWLYH

:6

$+($'

DQG

:,1'6+($5

$LUFUDIW HTXLSPHQW

SURFHGXUHV UHIHU WR WKH DSSOLFDEOH )&20 DQG 45+

DEVHQFH RI UHDFWLYH DQGRU SUHGLFWLYH ZLQG


VKHDU V\VWHP V 

5HFRYHU\ WHFKQLTXH IRU ZLQG VKHDU HQFRXQWHU


GXULQJ DSSURDFK DQG ODQGLQJ

$LUSRUW HTXLSPHQW

V\VWHP

,I ZLQG VKHDU LV HQFRXQWHUHG GXULQJ WKH DSSURDFK RU


LPSOHPHQWHG ZLWKRXW GHOD\
7ULJJHU

WKH

JRDURXQG


OHYHUV

RU

VHW

//:$6

GHWHFWLRQ

DQG

ZDUQLQJ

V\VWHP DQGRU

ODQGLQJ WKH IROORZLQJ UHFRYHU\ WHFKQLTXHV VKRXOG EH

$EVHQFH RI D ORZ OHYHO ZLQG VKHDU DOHUW

WKUXVW

$EVHQFH RI D WHUPLQDO 'RSSOHU UDGDU V\VWHP


7'56 

OHYHUV WR 72*$ DV DSSOLFDEOH DQG PDLQWDLQ WKH

PD[LPXP JRDURXQG WKUXVW

)ROORZ WKH )' SLWFK RUGHUV RU VHW WKH SLWFK

7UDLQLQJ 

DWWLWXGH WDUJHW UHFRPPHQGHG LQ WKH )&20 LI

DQGRU

)' LV QRW DYDLODEOH 

$EVHQFH RI ZLQG VKHDU DZDUHQHVV SURJUDP

,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

ODQGLQJ

JHDU

UHFRPPHQGHG SLWFK DWWLWXGH

'R

QRW

FKDQJH

FRQILJXUDWLRQ

WKH

XQWLO

IODSV

RXW

DQG

RI

WKH

ZLQG

VKHDU

FRQGLWLRQ

/HYHO WKH ZLQJV WR PD[LPL]H FOLPE JUDGLHQW

,QDGHTXDWH

PRQLWRULQJ

RI

IOLJKW

SURJUHVV

,QFRUUHFW

XVH

RI

RU

LQWHUDFWLRQ

ZLWK

DXWRPDWLRQ
$OORZ

DLUVSHHG

DFWLYDWLRQ

WR

GHFUHDVH

WR

VWLFN

VKDNHU

FRQYHQWLRQDO

DLUFUDIW

RQO\

ZKLOH

+XPDQ )DFWRUV DQG &50

PRQLWRULQJ VSHHG WUHQG

$EVHQFH

RI

FURVVFKHFN

IRU

H[FHVVLYH

SDUDPHWHUGHYLDWLRQV 

&ORVHO\ PRQLWRU WKH DLUVSHHG VSHHG WUHQG DQG


IOLJKW SDWK DQJOH LI IOLJKW SDWK YHFWRU LV DYDLODEOH
DQG GLVSOD\HG IRU WKH 31)  DQG

,QDGHTXDWH EULHILQJV

DFWLYDWLRQ ERXQGDU\ LQWHUPLWWHQW VWLFN VKDNHU

DQGRU

XQOHVV D WXUQ LV UHTXLUHG IRU REVWDFOH FOHDUDQFH

6WDQGDUG RSHUDWLQJ SURFHGXUHV

:KHQ RXW RI WKH ZLQG VKHDU FRQGLWLRQ LQFUHDVH

,QDGHTXDWH EDFNXS FDOORXWV  DQGRU

)DWLJXH

WKH DLUVSHHG ZKHQ D SRVLWLYH FOLPE LV FRQILUPHG


WKHQ HVWDEOLVK D QRUPDO FOLPE SURILOH

:LQG 6KHDU $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

6XPPDU\ RI .H\ 3RLQWV


7KH

IROORZLQJ

VKRXOG

EH

NH\

SRLQWV

FRQVLGHUHG

LQ

$VVRFLDWHG %ULHILQJ 1RWHV


DQG

UHFRPPHQGDWLRQV

WKH

GHYHORSPHQW

7KH

RI

FRPSDQ\ VWUDWHJLHV DQG LQLWLDWLYHV HQKDQFLQJ ZLQG


VKHDU DZDUHQHVV
.H\SRLQWV

DUH

JURXSHG

LQWR

WKH

WKUHH

GRPDLQV

DVVRFLDWHG ZLWK ZLQG VKHDU DZDUHQHVV $YRLGDQFH


5HFRJQLWLRQ DQG 5HFRYHU\  (VFDSH

$YRLGDQFH

$VVHVV WKH FRQGLWLRQV IRU D VDIH WDNHRII RU


DSSURDFKDQGODQGLQJ
DYDLODEOH

EDVHG

PHWHRURORJLFDO

RQ

DOO

GDWD

IROORZLQJ

%ULHILQJ

1RWHV

SURYLGH

H[SDQGHG

LQIRUPDWLRQ RQ UHODWHG VXEMHFWV

WKH

YLVXDO

 2SHUDWLQJ 3KLORVRSK\ 623V

 2SWLPXP 8VH RI $XWRPDWLRQ

  2SHUDWLRQV *ROGHQ 5XOHV

 6WDQGDUG &DOOV

 $SSURDFK DQG *RDURXQG %ULHILQJ

 $SSURDFK +D]DUGV $ZDUHQHVV

 %HLQJ 3UHSDUHG IRU *RDURXQG

REVHUYDWLRQV DQG RQERDUG HTXLSPHQW

5HJXODWRU\ 5HIHUHQFHV

'HOD\ WKH WDNHRII RU WKH DSSURDFK RU GLYHUW


WR D PRUH VXLWDEOH DLUSRUW DQG

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

WKH UHODWHG UHJXODWRU\ PDWHULDO

%H

SUHSDUHG

DQG

FRPPLWWHG

DGYLVRU\FDXWLRQZDUQLQJ

IRU
RU

WR

UHDFWLYH ZLQG VKHDU ZDUQLQJ

'RF  

5HFRJQLWLRQ

%H DOHUW WR UHFRJQL]H D SRWHQWLDO RU H[LVWLQJ


ZLQG

VKHDU

FRQGLWLRQ

EDVHG

RQ

DOO

,&$2 $QQH[  3DUW , 


5HFRPPHQGDWLRQ 7XUERMHW DLUSODQHV

SDUDPHWHUV DQG IOLJKW SDWK DQG

)RUZDUGORRNLQJ ZLQG VKHDU ZDUQLQJ V\VWHP

(QKDQFH

LQVWUXPHQWV

VFDQ

ZKHQHYHU

$YRLG ODUJH WKUXVW YDULDWLRQV RU WULP FKDQJHV

)$5  &RFNSLW FKHFN SURFHGXUH

)$5  $LUERUQH ZHDWKHU UDGDU


HTXLSPHQW UHTXLUHPHQWV

LQ UHVSRQVH WR VXGGHQ DLUVSHHG YDULDWLRQV

)ROORZ WKH )' ZLQG VKHDU UHFRYHU\HVFDSH

)$5  /RZDOWLWXGH ZLQG VKHDU V\VWHP


HTXLSPHQW UHTXLUHPHQWV

SLWFKJXLGDQFH RU DSSO\ WKH UHFRPPHQGHG


)&20 UHFRYHU\HVFDSH SURFHGXUH DQG

)$5  0DQXDO 5HTXLUHPHQWV


2SHUDWLRQV 0DQXDO &RQWHQWV

5HFRYHU\  (VFDSH

,&$2 :LQGVKHDU &LUFXODU  

DQG RQ WKH PRQLWRULQJ RI WKH DLUFUDIW IOLJKW

SRWHQWLDO ZLQG VKHDU LV VXVSHFWHG

WKH

DYDLODEOH ZHDWKHU GDWD RQERDUG HTXLSPHQW

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO

)$5  *URXQG SUR[LPLW\ ZDUQLQJ


JOLGH VORSH GHYLDWLRQ DOHUWLQJ V\VWHP

0DNH PD[LPXP XVH RI DLUFUDIW HTXLSPHQW


VXFK DV WKH IOLJKW SDWK YHFWRU DV DYDLODEOH 

)$5  E   3LORWV ,QLWLDO WUDQVLWLRQ


DQG XSJUDGH IOLJKW WUDLQLQJ :LQG VKHDU
PDQHXYHUV

:LQG 6KHDU $ZDUHQHVV


3DJH 

*HWWLQJ WR *ULSV ZLWK

$,5%86 ,1'8675,(
)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

2WKHU 5HIHUHQFHV

)$5  )OLJKW FUHZPHPEHU GXWLHV


VWHULOH FRFNSLW UXOH 

7KH LQGXVWU\GHYHORSHG :LQG 6KHDU 7UDLQLQJ $LG


VKRXOG EH XVHG WR IXUWKHU LOOXVWUDWH DQG FRPSOHPHQW

)$5  )DPLOLDULW\ ZLWK ZHDWKHU

WKH LQIRUPDWLRQ FRQWDLQHG LQ WKHVH %ULHILQJ 1RWHV

FRQGLWLRQV

7KH

WZRYROXPH

:LQG 6KHDU 7UDLQLQJ $LG

LV

DYDLODEOH IURP

)$$ $&   3LORW :LQG 6KHDU *XLGH

86 1DWLRQDO 7HFKQLFDO ,QIRUPDWLRQ 6HUYLFH

17,6 
 3RUW 5R\DO 5RDG
6SULQJILHOG 9$  86$
7HOHSKRQH

 86
RU

 
)D[  
,QWHUQHW VLWH KWWWSZZZQWLVJRY

3KRWR &UHGLW  6)(1$  6H[WDQW $YLRQLFV

:LQG 6KHDU $ZDUHQHVV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

5HDGLQHVVDQG&RPPLWPHQWWR*RDURXQG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

%HLQJ3UHSDUHGWR*R$URXQG

6WDWLVWLFDO 'DWD

,QWURGXFWLRQ

)DLOXUH WR UHFRJQL]H WKH QHHG IRU DQG WR H[HFXWH D


JRDURXQG DQG PLVVHGDSSURDFK ZKHQ DSSURSULDWH
LV D PDMRU FDXVH RI DSSURDFKDQGODQGLQJ
DFFLGHQWV
%HFDXVH D JRDURXQG LV QRW D IUHTXHQW RFFXUUHQFH
WKH LPSRUWDQFH RI
DQG
PXVW EH HPSKDVL]HG
7R EH JRDURXQGSUHSDUHG DQG JRDURXQGPLQGHG
WKH IOLJKW FUHZ VKRXOG
x +DYH D FOHDU PHQWDO LPDJH RI DSSOLFDEOH
EULHILQJV VHTXHQFHV RI DFWLRQV WDVN VKDULQJ
VWDQGDUG FDOOV DQG H[FHVVLYHGHYLDWLRQ FDOORXWV
x %H UHDG\ WR DEDQGRQ WKH DSSURDFK LI
&HLOLQJ DQGRU YLVLELOLW\ 595 DUH EHORZ WKH
UHTXLUHG ZHDWKHU PLQLPXPV
&ULWHULD IRU D VWDELOL]HG DSSURDFK DUH QRW
DFKLHYHG
'RXEW H[LVWV DERXW WKH DLUFUDIW SRVLWLRQ
DQGRU
&RQIXVLRQ H[LVWV DERXW WKH XVH RI
DXWRPDWLRQ
x $IWHU WKH JRDURXQG LV LQLWLDWHG EH IXOO\
FRPPLWWHG WR IO\ WKH SXEOLVKHG PLVVHGDSSURDFK
SURFHGXUH
7KH FKDLQ RI HYHQWV UHVXOWLQJ LQ D JRDURXQG RIWHQ
VWDUWV DW WKH WRSRIGHVFHQW WKLV %ULHILQJ 1RWH
WKHUHIRUH SURYLGHV DQ RYHUYLHZ RI RSHUDWLRQDO
UHFRPPHQGDWLRQV VWDUWLQJ IURP WKH GHVFHQW
SUHSDUDWLRQ DQG DSSURDFK EULHILQJ

0RUH WKDQ   RI DSSURDFKDQGODQGLQJ DFFLGHQWV


FRQWDLQ HOHPHQWV ZKLFK VKRXOG KDYH EHHQ
UHFRJQL]HG E\ WKH FUHZ DV LPSURSHU DQG ZKLFK
VKRXOG KDYH SURPSWHG D JRDURXQG
,QDGHTXDWH DVVHUWLYHQHVV DQGRU GHFLVLRQPDNLQJ
DUH FDXVDO IDFWRUV LQ   RI HYHQWV
,Q RQO\   RI UXVKHG DQG XQVWDELOL]HG DSSURDFKHV
DQDO\]HG E\ WKH DSSURDFKDQGODQGLQJ DFFLGHQWV
UHGXFWLRQ WDVN IRUFH WKH IOLJKW FUHZ LQLWLDWHG
D JRDURXQG ZKHQ FRQGLWLRQV FOHDUO\ GLFWDWHG WKDW
D JRDURXQG ZDV UHTXLUHG E\
x $Q XQVWDELOL]HG DSSURDFK
x ([FHVVLYH JOLGHVORSH DQGRU ORFDOL]HU GHYLDWLRQ
x $EVHQFH RI DGHTXDWH YLVXDO UHIHUHQFHV DW WKH
0'$ + RU '$ + 
x &RQIXVLRQ UHJDUGLQJ DLUFUDIW SRVLWLRQ DQGRU
x $XWRPDWLRQLQWHUDFWLRQ

EHLQJ JRDURXQGSUHSDUHG

EHLQJ JRDURXQGPLQGHG

2SHUDWLRQDO 5HFRPPHQGDWLRQV
7DVN 6KDULQJ

6WULFW DGKHUHQFH WR WKH GHILQHG 3)31) WDVN VKDULQJ


LV WKH PRVW LPSRUWDQW IDFWRU WR FRQGXFW D VDIH
JRDURXQG WKLV LQFOXGHV WDVN VKDULQJ IRU
x +DQG IO\LQJ RU IO\LQJ ZLWK $3 HQJDJHG DQGRU
x 1RUPDO RSHUDWLRQ RU DEQRUPDO  HPHUJHQF\
FRQGLWLRQV

%HLQJ 3UHSDUHG WR *R $URXQG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

7KH

IROORZLQJ

%ULHILQJ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

1RWHV

SURYLGH

H[SDQGHG

&RQFHSW RI QH[W WDUJHW

LQIRUPDWLRQ RQ 3)  31) WDVN VKDULQJ

 2SHUDWLQJ 3KLORVRSK\  623V

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

GHILQHG DW DOO WLPHV WR

EH

'XULQJ WKH GHVFHQW DSSURDFK DQG ODQGLQJ SKDVHV


VXFFHVVLYH

QH[W

WDUJHWV

VKRXOG

EH

GHILQHG

DQG

LPPHGLDWH FRUUHFWLYH DFWLRQ V VKRXOG EH WDNHQ LI LW

  )O\LQJ D 0DQXDO *RDURXQG

QH[W WDUJHW VKRXOG


VWD\ DKHDG RI WKH DLUFUDIW

7KURXJKRXW WKH HQWLUH IOLJKW D

DQWLFLSDWHG WKDW

RQH

HOHPHQW

RI

WKH

QH[W

WDUJHW

ZRXOG QRW EH DFKLHYHG

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

5HIHU
'HVFHQW 3UHSDUDWLRQ

WR

%ULHILQJ

1RWH



'HVFHQW

3URILOH

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


7R

EH

JRDURXQG

SUHSDUHG

,I
IRUPDO

JRDURXQG

*RDURXQG PDQHXYHU DQG


3XEOLVKHG PLVVHGDSSURDFK SURFHGXUH

UHFDOO WKH IROORZLQJ NH\ DVSHFWV

0DLQWDLQLQJ

KLJK

DLUVSHHG

DV

ORQJ

 QDXWLFDO PLOH IURP WRXFKGRZQ DQG

FOHDQ

([WHQGLQJ WKH ODQGLQJ JHDU LI WKH XVH RI VSHHG

VSHHG

$V D ODVW UHVRUW SHUIRUP D GHJUHH WXUQ DV

JUHHQ

GRW

,I

WKH

GHVLUHG

UHFRYHUHG

$7&

GHVFHQW
VKRXOG

IOLJKW
EH

SDWK

QRWLILHG

FDQQRW
IRU

FRRUGLQDWLRQ
5HIHU WR %ULHILQJ 1RWHV IRU H[SDQGHG LQIRUPDWLRQ

3)  31) WDVN VKDULQJ LH IORZ RI UHVSHFWLYH


LQFOXGLQJ

GHVLUHG

JXLGDQFH

PRGH

  'HVFHQW 3URILOH 0DQDJHPHQW

  (QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK

 DQG

HQJDJHPHQW VSHHG WDUJHW JRDURXQG DOWLWXGH


GHYLDWLRQV FDOORXW  DQG

0LVVHGDSSURDFK YHUWLFDO DQG ODWHUDO QDYLJDWLRQ


LQFOXGLQJ VSHHG DQG DOWLWXGH UHVWULFWLRQV 

6HH

DOVR

%ULHILQJ

1RWH



$SSURDFK

DQG

*RDURXQG %ULHILQJV  IRU H[SDQGHG LQIRUPDWLRQ

%HLQJ 3UHSDUHG WR *R $URXQG


3DJH 

EH

WLPHO\

*RDURXQG VWDQGDUG FDOO HJ D ORXG DQG FOHDU

DFWLRQV

DV

SUDFWLFDO DQG FOHDUHG E\ $7& 

*R $URXQG  )ODSV FDOO 

GHVLUHG

8VLQJ VSHHG EUDNHV

VSHHG 

WKH

EUDNHV LV QRW VXIILFLHQW DQG

 IW DERYH DLUILHOG HOHYDWLRQ

PDQHXYHULQJ

DERYH

7DUJHW VWDELOL]DWLRQ SRLQW HJ

VLJQLILFDQWO\

SUDFWLFDO 

7KH JRDURXQG SDUW RI WKH DSSURDFK EULHILQJ VKRXOG

LV

GHVLUHG IOLJKW SDWK FDQ EH UHFRYHUHG E\

SRLQWV RI

SDWK

EHFDXVH RI D KLJKHUWKDQDQWLFLSDWHG WDLO ZLQG WKH

EULHILQJ VKRXOG EH FRQGXFWHG KLJKOLJKWLQJ WKH NH\

IOLJKW

GHVFHQW SURILOH HJ EHFDXVH RI $7& FRQVWUDLQW RU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)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

DVSHFWV VKRXOG EH FRQVLGHUHG WR EH UHDG\ WR WDNH


RYHU PDQXDOO\

QRW

PHW

WKH

FUHZ

VKRXOG

EH

JRDURXQGFRPPLWWHG LQLWLDWH D JRDURXQG DQG IO\


WKH SXEOLVKHG PLVVHGDSSURDFK

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

)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 

  )O\LQJ D 0DQXDO *RDURXQG

 2SHUDWLQJ 3KLORVRSK\  623V

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

FUHZPHPEHU LV LQ DOPRVWYLVXDO IO\LQJ FRQGLWLRQV

  $SSURDFK DQG *RDURXQG %ULHILQJV

7KH

  'HVFHQW DQG $SSURDFK 3URILOH

*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
YLVXDO UHIHUHQFHV 'XULQJ WKLV SHULRG RI WLPH WKLV

WDVN

VKDULQJ

IRU

WKH

DFTXLVLWLRQ

RI

YLVXDO

UHIHUHQFHV LV GLVFXVVHG DQG H[SDQGHG LQ %ULHILQJ


1RWH

0DQDJHPHQW

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

,I D JRDURXQG LV LQLWLDWHG DQ LPPHGLDWH WUDQVLWLRQ

  (QHUJ\ 0DQDJHPHQW GXULQJ


$SSURDFK

EDFN WR LQVWUXPHQW IO\LQJ PXVW WDNH SODFH


7KH RWKHU FUHZPHPEHU WKHUHIRUH PXVW PDLQWDLQ
LQVWUXPHQW

UHIHUHQFHV

DQG

EH

UHDG\

WR

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

PDNH

DSSURSULDWH FDOORXWV LI RQH IOLJKW SDUDPHWHU VSHHG


SLWFK DWWLWXGH EDQN DQJOH WKUXVW GHYLDWHV IURP WKH
QRUPDO DQG VDIH YDOXH

5HJXODWRU\ UHIHUHQFHV

7R HDVH WKLV WUDQVLWLRQ DOO HIIRUWV VKRXOG EH PDGH WR


LQLWLDWH WKH JRDURXQG ZLWK ZLQJV OHYHO DQG ZLWK

QR UROO UDWH

,QWHUQDWLRQDO

DSSO\

ZKHQ

&$37)2

WDVN

VKDULQJ

LV

LPSOHPHQWHG LQ DFFRUGDQFH ZLWK WKH FRQFHSW NQRZQ


DV

6KDUHG

DSSURDFK

RU

0RQLWRUHG

DSSURDFK

FRQFHSW

LV

GHVFULEHG

LQ

%ULHILQJ

$LU

7UDQVSRUW

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW 2SHUDWLRQV 3$16236  'RF  

RU

9ROXPH , )OLJKW 3URFHGXUHV

'HOHJDWHG KDQGOLQJ DSSURDFK


WKLV

&RPPHUFLDO

$HURSODQHV $SSHQGL[    

7KLV WUDQVLWLRQ IURP DOPRVW90& EDFN WR ,0& GRHV


QRW

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,

1RWH

,&$2

0DQXDO

'RF  

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV 

%HLQJ 3UHSDUHG WR *R $URXQG


3DJH 

RI

$OO:HDWKHU

2SHUDWLRQV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)$5  7DNHRII DQG ODQGLQJ XQGHU ,)5


UHTXLUHPHQW IRU LPPHGLDWH JRDURXQG LQ FDVH RI
ORVV RI YLVXDO UHIHUHQFHV ZKHQ EHORZ 0'$ + RU
'$ + GXULQJ D QRQSUHFLVLRQ RU &$7 , ,/6
DSSURDFK

)$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

)$$ $& $ 3LORWV 6SDWLDO 'LVRULHQWDWLRQ

%HLQJ 3UHSDUHG WR *R $URXQG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

)O\LQJD0DQXDO*RDURXQG

5HFRPPHQGDWLRQV

,QWURGXFWLRQ

%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

+DYH

FOHDU

PHQWDO

LPDJH

RI

IOLJKW

EULHILQJV VHTXHQFHV RI DFWLRQV WDVN VKDULQJ

LV UHVSRQVLEOH IRU FRQWUROOLQJ WKH YHUWLFDO


SDWK

DQG

ODWHUDO

IOLJKW

SDWK

DQG

IRU HQHUJ\ PDQDJHPHQW E\ HLWKHU

VWDQGDUG FDOOV DQG H[FHVVLYHGHYLDWLRQ FDOORXWV

x
x

3)

7KH

DSSOLFDEOH

6XSHUYLVLQJ WKH DXWRSLORW YHUWLFDO JXLGDQFH DQG


ODWHUDO JXLGDQFH DQG WKH DXWRWKURWWOHDXWRWKUXVW

%H UHDG\ WR DEDQGRQ WKH DSSURDFK LI

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

'RXEW

H[LVWV

DERXW

WKH

DLUFUDIW

,I PDQXDO WKUXVW LV VHOHFWHG WKH 31) VKRXOG

SRVLWLRQ

DQGRU

&RQIXVLRQ

H[LVWV

DERXW

WKH

XVH

)O\LQJ PDQXDOO\ ZLWK )' JXLGDQFH

PRQLWRU

WKH

FORVHO\

DQG

7KH

WKH

IOLJKW

FUHZ

VKRXOG

EH

JRDURXQGFRPPLWWHG LQLWLDWH D JRDURXQG DQG IO\


WKH

PLVVHGDSSURDFK

LH

IROORZLQJ

WKH

SURFHGXUH

SXEOLVKHG

DV

YHUWLFDO

SURFHGXUHV

0RQLWRULQJ YHUWLFDO VSHHG DQG UDGLR DOWLWXGH

0RQLWRULQJ SLWFK DWWLWXGH EDQN DQJOH VSHHG DQG

UHFRPPHQGHG

WUHQG

DQG

FDOOLQJ

DQ\

H[FHVVLYHGHYLDWLRQ

DQG

7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI WKH IO\LQJ


DQG

WKUXVW

H[FHVVLYH

31) LV UHVSRQVLEOH IRU PRQLWRULQJ WDVNV DQG IRU

VSHHG

ODWHUDO QDYLJDWLRQ RU DV GLUHFWHG E\ $7& 

WHFKQLTXHV

DQG

SXEOLVKHG
SURILOH

WUHQG

SDUDPHWHU

LQFOXGHV

,I WKH FRQGLWLRQV IRU D VDIH DSSURDFK DQG ODQGLQJ DUH


PHW

VSHHG

DQ\

SHUIRUPLQJ WKH DFWLRQV UHTXHVWHG E\ WKH 3) WKLV

  %HLQJ 3UHSDUHG IRU

*RDURXQG

QRW

FDOO

GHYLDWLRQ

RI

DXWRPDWLRQ
6HH DOVR %ULHILQJ 1RWH

VSHHG

IRU

0RQLWRULQJ WKUXVW

623 DFWLRQV DQG QRUPDO FKHFNOLVWV

WKH VDIH FRQGXFW RI D PDQXDO JRDURXQG

)O\LQJ D 0DQXDO *RDURXQG


3DJH 

SDUDPHWHU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$V D UHVXOW RI WKHVH WKUHH QRVH XS HIIHFWV

$FWLRQV RQ )&8 RU )06 &'8 ZKHQ LQ PDQXDO


IOLJKW DQG

$EQRUPDO

RU

HPHUJHQF\

FKHFNOLVWV

7KH SLWFK DWWLWXGH DQG SLWFK UDWH LQFUHDVH DQG

7KH QRVH XS SLWFKIRUFH UHTXLUHG WR PDLQWDLQ

(&$0

DFWLRQV DQGRU 45+ SURFHGXUHV 

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

WR

FRQYHQWLRQDO

WKH

EDVLF

DLUFUDIW

SULQFLSOHV

RI

PRGHOV

IOLJKW

DQG

H[FHHGLQJ

WKLV

WDUJHW 

WKH

3)

PXVW

WKHUHIRUH

7KH IROORZLQJ RYHUYLHZ DQG GLVFXVVLRQ PDLQO\ DSSO\


1HYHUWKHOHVV
SLWFKLQJ

HIIHFWV

5HOHDVH WKH EDFNZDUG QRVH XS LQSXW RQ WKH


FRQWURO FROXPQ VLGH VWLFN 

QHHG WR EH XQGHUVWRRG E\ SLORWV RSHUDWLQJ DLUFUDIW


PRGHOV ZLWK IO\E\ZLUH FRQWUROV DQG SURWHFWLRQV

x
'XULQJ

URWDWLRQ

IRU

WDNHRII

WKH

DLUFUDIW

LV

GRZQ LQSXW RQ WKH FRQWURO FROXPQ VLGH VWLFN 

SUHWULPPHG DQG WKH WKUXVW LV DOUHDG\ VHW


7KH

LQLWLDWLRQ

G\QDPLF

RI

VHTXHQFH

JRDURXQG
RI

DV WKH WKUXVW LQFUHDVHV DQG

LQYROYHV

DFWLRQV

DQG

$SSO\ SURJUHVVLYHO\ DQ LQFUHDVLQJ IRUZDUG QRVH

YHU\

FKDQJHV

5HWULP WKH DLUFUDIW QRVH GRZQ  DV QHFHVVDU\


RQ FRQYHQWLRQDO DLUFUDIW PRGHOV RQO\ 

LH WKUXVW LQFUHDVH FRQILJXUDWLRQ FKDQJH DIIHFWLQJ


WKH SLWFK EDODQFH

7KH

7KHVH HIIHFWV DUH DPSOLILHG

3)

VKRXOG

VLPSO\

IO\

WKH

DLUFUDIW

ZKLOH

FORVHO\ PRQLWRULQJ WKH 3)'

$W ORZ JURVVZHLJKW ORZ DOWLWXGH DQG ORZ RXWVLGH


DLU WHPSHUDWXUH KHQFH DW KLJK WKUXVWWRZHLJKW

,I

UDWLR  DQGRU

WKH

WKH

SLWFK

SLWFK

LV

DWWLWXGH

QRW

SRVLWLYHO\

FRQWLQXHV

WR

FRQWUROOHG

LQFUHDVH

XQWLO

VLJQLILFDQW VSHHG ORVV RFFXUV GHVSLWH WKH JRDURXQG

: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

7KHUHIRUH WKH 3) PXVW VLPXOWDQHRXVO\ DSSO\ D QRVH

XS SLWFK FRPPDQG RQ WKH FRQWURO FROXPQ VLGH VWLFN


DQG WULJJHU WKH JRDURXQG OHYHUV VHW 72*$ 

DWWLWXGH FKDQJH WKDW PLQLPL]HV WKH DOWLWXGH ORVV

:LWKLQ

IHZ

VHFRQGV

WKH

WKUXVW

SLWFKLQJ

HIIHFW

RI

XQGHUZLQJPRXQWHG

VHW DQG FKHFN WKH JRDURXQG WKUXVW DQG

3HUIRUPDQFH 

HQJLQHV 

VHW DQG PDLQWDLQ WKH WDUJHW SLWFK DWWLWXGH

3RZHU 

LQFUHDVH

FUHDWHV DQ DGGLWLRQDO QRVH XS HIIHFW EHFDXVH RI


WKH

3LWFK 


7KLV ILUVW QRVH XS HOHYDWRU LQSXW LQLWLDWHV D SLWFK

3V UXOH

FKHFN WKH DLUFUDIW SHUIRUPDQFH SRVLWLYH UDWH


RI FOLPE VSHHG DW RU DERYH 9

5HWUDFWLQJ

RQH

VWHS

RI

IODSV

DOVR

UHVXOWV

EUDNHV

LQ

UHWUDFWHG

UDGLRDOWLPHWHU

$33

DQG

VSHHG
EDUR

DOWLPHWHU LQGLFDWLRQV LQFUHDVLQJ ZLQJV OHYHO

D VOLJKW QRVH XS SLWFKLQJ HIIHFW

QR UROO UDWH JHDU XS IODSV DV UHTXLUHG

)O\LQJ D 0DQXDO *RDURXQG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH RSHUDWLRQDO UHFRPPHQGDWLRQV DQG WDVN VKDULQJ

'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

:KHQ FDOOLQJ *RDURXQG  )ODSV  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 

:KHQ KHDULQJ WKH

*RDURXQG )ODSV 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

FKHFN WKH )0$ 

DLUFUDIW W\SH W\SLFDOO\  GHJUHHV 

FKHFN JRDURXQG 3RZHU WKUXVW 

FKHFN JRDURXQG 3HUIRUPDQFH 

SRVLWLYH UDWH RI FOLPE

VSHHG DW RU DERYH 9

VSHHG EUDNHV UHWUDFWHG

UDGLRDOWLPHWHU

DQG

LQGLFDWLRQV LQFUHDVLQJ

JHDU XS DQG

IODSV DV UHTXLUHG

DQQRXQFH

ORXGO\

WKH

)0$

FRQGLWLRQV

7+5

PRGH

YHUWLFDO

DQG

ODWHUDO

$3)' VWDWXV LH $3 HQJDJHG RU KDQG

DQQRXQFH 3RVLWLYH &OLPE DQG UHWUDFW WKH

7+5 WKUXVW PRGH YHUWLFDO DQG ODWHUDO

$3)' VWDWXV LH $3 HQJDJHG RU KDQG

$V WKUXVW LQFUHDVHV EH SUHSDUHG WR FRXQWHUDFW


LQFUHDVLQJ IRUZDUG SUHVVXUH QRVHGRZQ LQSXW 

PRQLWRU 

WKH DLUVSHHG DQG VSHHG WUHQG

WKH SLWFK DWWLWXGH DQG EDQN DQJOH

WKH WKUXVW LQFUHDVH FRQILUP WKH WKUXVW


OLPLW PRGH DV DSSOLFDEOH DQG WKH DFWXDO

RQ WKH FRQWURO FROXPQVLGH VWLFN 


7ULP

WKUXVW

ODQGLQJ JHDU RQ 3) FRPPDQG

WKH WKUXVW QRVH XS SLWFKLQJ HIIHFW LH DSSO\ DQ

$3  )' HQJDJHPHQW VWDWXV

IO\LQJ ZLWK )' JXLGDQFH 

IO\LQJ ZLWK )' JXLGDQFH 

PRGHV

PRGHV HQJDJHG DQG

PRGHV HQJDJHG DQG

ODWHUDO

DQQRXQFH ORXGO\ WKH )0$ XQOHVV DQQRXQFHG

SHUPLWWLQJ

DQG

E\ 3)

EDURPHWULFDOWLPHWHU

ZLQJV OHYHO QR UROO UDWH

YHUWLFDO

HQJDJHPHQW DQG

$33

WKUXVW

WKH

DLUFUDIW

QRVH

GRZQ

WKUXVW RQ 1(35 LQGLFDWRUV 


DV

UHTXLUHG

FRQYHQWLRQDO DLUFUDIW PRGHOV RQO\ 

)O\LQJ D 0DQXDO *RDURXQG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

FRQWLQXH PRQLWRULQJ WKH IOLJKW SDUDPHWHUV DQG

6WULFW DGKHUHQFH WR WKH GHILQHG 3)  31) WDVN

FDOO DQ\ H[FHVVLYH SDUDPHWHU GHYLDWLRQ 

VKDULQJ

VSHHG
$33

DQG

WR

FUHZ

UHVRXUFHV

PDQDJHPHQW

SULQFLSOHV VKRXOG EH HPSKDVL]HG IRU


GHFUHDVHV EHORZ

 LI DLUVSHHG

 NW

0RQLWRULQJ RI

IOLJKW

DQG

FDOORXW

RI

DQ\

IOLJKW

RU

RWKHU

SDUDPHWHU H[FHVVLYHGHYLDWLRQ RU

VSHHG WUHQG  LI QHJDWLYH

0DQDJHPHQW

RI

DQ\

ZDUQLQJ

XQH[SHFWHG RFFXUUHQFHV

SLWFK

LI

SLWFK

DWWLWXGH

H[FHHGV

 GHJUHHV

EDQN

,I D ZDUQLQJ LV DFWLYDWHG RU LI DQ\ RWKHU DEQRUPDO


LI

EDQN

DQJOH

FRQGLWLRQ

H[FHHGV

 GHJUHHV  GHJUHHV LI WKH PLVVHG

6XPPDU\ RI NH\ SRLQWV

0LQLPL]H WKH LQLWLDO DOWLWXGH ORVV

3UHYHQW DQ H[FHVVLYH SLWFK DWWLWXGH E\ 

3V UXOH 

IROORZLQJ )' SLWFK FRPPDQGV 656 RUGHUV 


QRW H[FHHGLQJ GHJUHHV SLWFK DWWLWXGH 

)RU D VDIH JRDURXQG VWULFWO\ DGKHUH WR WKH IROORZLQJ

JRDURXQG

7KH PDQXDO JRDURXQG WHFKQLTXH PXVW


WKUXVW  LI D VLJQLILFDQW WKUXVW ORVV LV
REVHUYHG

FRQVLGHULQJ D GHJUHH SLWFK DWWLWXGH DV DQ


XOWLPDWH EDUULHU IURP ZKLFK WKH SLORW VKRXOG

3LWFK 

WKH

SDWK 

DQGRU

GXULQJ

WKH DLUFUDIW LH YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW

DSSURDFK SURFHGXUH UHTXLUHV D WXUQ 

RFFXUV

WKH 3) PXVW FRQFHQWUDWH KLVKHU DWWHQWLRQ RQ IO\LQJ

UHWXUQ LPPHGLDWHO\

VHW DQG PDLQWDLQ WKH WDUJHW SLWFK DWWLWXGH

3RZHU 

$VVRFLDWHG %ULHILQJ 1RWHV

7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG WR

VHW DQG FKHFN JRDURXQG WKUXVW DQG

IXUWKHU H[SDQG WKH DERYH LQIRUPDWLRQ

3HUIRUPDQFH 

  6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

FKHFN  FRQILUP DLUFUDIW SHUIRUPDQFH 

SRVLWLYH UDWH RI FOLPE

VSHHG DW RU DERYH 9

VSHHG EUDNHV UHWUDFWHG

 'HVFHQW DQG $SSURDFK 0DQDJHPHQW

UDGLRDOWLPHWHU DQG EDURPHWULFDOWLPHWHU

 (QHUJ\ 0DQDJHPHQW GXULQJ $SSURDFK

  %HLQJ 3UHSDUHG IRU *RDURXQG

  )O\LQJ 6WDELOL]HG $SSURDFKHV

$33

LQGLFDWLRQV LQFUHDVLQJ

ZLQJV OHYHO DQG QR UROO UDWH

JHDU XS DQG

IODSV DV UHTXLUHG

)O\LQJ D 0DQXDO *RDURXQG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 $QQH[  2SHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

WUDQVSRUW

$HURSODQHV $SSHQGL[     


DQG 

,&$2 3UHSDUDWLRQV RI DQ 2SHUDWLRQV 0DQXDO


'RF  

6SHHG

$33   NW

,I GURSSLQJ EHORZ 9

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

)O\LQJ D 0DQXDO *RDURXQG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH
5HVSRQVHWR*3:63XOO8S0DQHXYHU7UDLQLQJ
,QWURGXFWLRQ

$ W\SLFDO DZDUHQHVV DQG WUDLQLQJ SURJUDP IRU WKH


UHGXFWLRQ RI DSSURDFKDQGODQGLQJ DFFLGHQWV
LQYROYLQJ FRQWUROOHGIOLJKWLQWRWHUUDLQ &),7 VKRXOG
LQFOXGH WKH IROORZLQJ
x (GXFDWH IOLJKW FUHZV RQ WKH IDFWRUV WKDW PD\
FDXVH &),7
x (QVXUH WKDW KRUL]RQWDO VLWXDWLRQDO DZDUHQHVV DQG
YHUWLFDO VLWXDWLRQDO DZDUHQHVV LV PDLQWDLQHG DW DOO
WLPHV 623V 
x (QVXUH WKDW IOLJKW FUHZV DWWDLQ SURILFLHQF\ LQ WKH
H[HFXWLRQ RI WKH DSSURDFK SURFHGXUHV DQG
WHFKQLTXHV UHFRPPHQGHG IRU WKHLU DLUFUDIW W\SH
x 3URYLGH SLORWV ZLWK DQ DGHTXDWH XQGHUVWDQGLQJ RI
WKH FDSDELOLW\ DQG OLPLWDWLRQV RI WKH *3:6 DQG
(*3:6  7$:6 LQVWDOOHG RQ WKHLU DLUFUDIW DQG
x (QVXUH WKDW SLORWV DUH SURILFLHQW LQ SHUIRUPLQJ WKH
WHUUDLQ DYRLGDQFH PDQHXYHU UHTXLUHG LQ UHVSRQVH
WR D *3:6 RU (*3:6  7$:6 ZDUQLQJ
)LJXUH  DQG )LJXUH  DQG DSSOLFDEOH )&20 
45+ 

)DFWRU

 RI (YHQWV

*3:6 LQVWDOOHG
 ODWH FUHZ UHVSRQVH RU
 LQDGHTXDWH FUHZ UHVSRQVH

 

*3:6 LQVWDOOHG
 QR ZDUQLQJ

 

*3:6 QRW LQVWDOOHG

 

7DEOH 
*3:6 )DFWRUV LQ &),7 (YHQWV
&LUFD 
7UDLQLQJ 3URJUDP 2XWOLQH

7KH WUDQVLWLRQ WUDLQLQJ DQG UHFXUUHQW WUDLQLQJ VKRXOG


HPSKDVL]HG WKH IROORZLQJ GXULQJ GHVFHQW DQG
DSSURDFK
x 6WULFW DGKHUHQFH WR 623V HJ VWDQGDUG FDOOV
WR UHLQIRUFH WKH KRUL]RQWDO VLWXDWLRQDO DZDUHQHVV
DQG YHUWLFDO VLWXDWLRQDO DZDUHQHVV
x 2SWLPXP XVH RI DXWRPDWHG V\VWHPV DQG FRFNSLW
GLVSOD\V
7KH &),7 SUHYHQWLRQWUDLQLQJ SURJUDP UHFRPPHQGHG
KHUHDIWHU IXUWKHU VXSSRUWV WKHVH REMHFWLYHV
7KLV SURJUDP LV GHVLJQHG WR EH LQWHJUDWHG LQWR WKH
VWDQGDUG WUDQVLWLRQWUDLQLQJ FRXUVH DQGRU UHFXUUHQW
WUDLQLQJ FRXUVH GHYHORSHG E\ $LUEXV ,QGXVWULH RU
GHYHORSHG E\ WKH DLUOLQHV WUDLQLQJ GHSDUWPHQW

6WDWLVWLFDO 'DWD

&),7 HYHQWV DFFRXQW IRU DSSUR[LPDWHO\   RI DOO


DSSURDFKDQGODQGLQJ DFFLGHQWV DQG DUH WKH OHDGLQJ
FDXVH RI IDWDOLWLHV
)LJXUH  VKRZV WKDW   RI &),7 HYHQWV FRXOG KDYH
EHHQ DYRLGHG E\
x ,QVWDOODWLRQ RI D *3:6 RU
x $Q LPPHGLDWH DQG DGHTXDWH UHVSRQVH WR
WKH *3:6 ZDUQLQJ

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7KH UHFRPPHQGHG SURJUDP FRQVLVWV RI

HOHFWURQLF PRXQWDLQ IURP WKH LQVWUXFWRU SDQHO DW

$ FODVVURRP EULHILQJ RU D VHOIEULHILQJ VHVVLRQ

D VHOHFWHG SRLQW DKHDG RI WKH DLUFUDIW


V SUHVHQW

EDVHG RQ WKH FRQWHQWV RI

WKH

$LUEXV

SRVLWLRQ RQ LWV SURMHFWHG IOLJKW SDWK

,QGXVWULH

&),7

(GXFDWLRQ

DQG

1HYHUWKHOHVV LQVHUWLQJ DQ HOHFWURQLF PRXQWDLQ DW

7UDLQLQJ $LG

WKH UHOHYDQW

DQ DLUSRUW WKDW GRHV QRW IHDWXUH VXFK WHUUDLQ PD\


UHVXOW LQ WKH WUDLQHH GLVPLVVLQJ WKH ( *3:6 

$SSURDFKDQG/DQGLQJ %ULHILQJ

7$:6 ZDUQLQJ DVVXPLQJ D VSXULRXV ZDUQLQJ 

1RWHV DQG SUHVHQWDWLRQV

WKH

GHVFULSWLRQ

DQG

WKXV UHVXOWLQJ LQ QHJDWLYH WUDLQLQJ

RSHUDWLRQV

RI

WKH

7KH VORSH DQG KHLJKW RI WKH PRXQWDLQ VKRXOG EH

DSSOLFDEOH PRGHO RI *3:6 DQG (*3:6 

WDLORUHG

7$:6 )&20 DQG 45+ 

7KH

$LUEXV

LOOXVWUDWLQJ

,QGXVWULH
WKH

&),7

WHUUDLQ

YLGHR

HVFDSH

SURJUDP

WUDQVLWLRQ

WUDLQLQJ

7R SUHYHQW QHJDWLYH WUDLQLQJ WKH VLPXODWRU PXVW


UHDOLVWLFDOO\

$GGLWLRQDO EULHILQJ PDWHULDO WR SRLQW RXW WKH ULVN


DSSURDFKHV

DQG

VWHSGRZQ
WKH

UHSUHVHQW

DGYDQWDJHV

RI

$SSURDFK
RQ

WKH

SURYLGHV

EHQHILWV

TXDOLWLHV

UHGXFHV

WR

DQG
VWLFN

6LPXODWRU ([HUFLVHV

XVLQJ

$OO

LQIRUPDWLRQ

KDQGOLQJ
VSHHG

VKDNHU VSHHG RU PLQLPXP VSHHG DV DSSOLFDEOH 

 )O\LQJ &RQVWDQW$QJOH 1RQ

3UHFLVLRQ

WKH

QRQSUHFLVLRQ

D FRQVWDQWDQJOH VWDELOL]HG SURILOH


%ULHILQJ 1RWH

ZHLJKW

HVFDSH PDQHXYHU

DQGRU

GXULQJ

SHUIRUPDQFH

FOLPE JUDGLHQWV WKDW FDQ EH DFKLHYHG LQ WKH

SHUIRUPDQFH DV
&),7

DLUFUDIW

UHSUHVHQWDWLYH

DGMXVWDEOH XS WR DW OHDVW  q GHSHQGLQJ RQ WKH

7KUHH W\SLFDO H[HUFLVHV DUH GHVFULEHG KHUHDIWHU

RI

7KH VORSH RI WKH PRXQWDLQ VKRXOG WKHUHIRUH EH

UHFXUUHQW WUDLQLQJ

SDUWLFXODU

DW

SHUIRUPDQFH LV UHTXLUHG WR DYRLG LPSDFW

PDQHXYHU

([HUFLVHV WR EH LQFRUSRUDWHG LQ VLPXODWRU WUDLQLQJ


GXULQJ

WKH

HJ PD[LPXP ODQGLQJ ZHLJKW  VR WKDW PD[LPXP

SURWHFWHG DLUFUDIW UHVSHFWLYHO\

VHVVLRQV

WR

FDSDELOLW\

WHFKQLTXHV DSSOLFDEOH WR FRQYHQWLRQDO DLUFUDIW DQG

7KH FDSDELOLW\ VKRXOG EH SURYLGHG WR LQVHUW DQ

( *3:6

7$:6

PRGHV

VKRXOG

EH

GHPRQVWUDWHG

H[SDQGHG

DVVRFLDWHG

7KH REMHFWLYH VKRXOG EH WR JDLQ DQ XQGHUVWDQGLQJ

ZLWK

RI WKH SDUDPHWHUV DQG OLPLWDWLRQV RI WKH ( *3:6 

FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFKHV

7$:6 LQVWDOOHG RQ WKH DLUFUDIW W\SH

6LPXODWRU 5HTXLUHPHQWV IRU &),7 3UHYHQWLRQ


7UDLQLQJ

7KHVH H[HUFLVHV FDQ EH SHUIRUPHG LQ HLWKHU D IL[HG


EDVH VLPXODWRU )%6 RU D IXOOIOLJKW VLPXODWRU ))6 
7KH IROORZLQJ VFHQDULRV WR EH SHUIRUPHG LQ WKH ))6

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

RSHUDWLQJ HQYLURQPHQW
7KLV VLPXODWRU YLVXDO V\VWHP VKRXOG EH DEOH WR
GLVSOD\ WKH WHUUDLQ IHDWXUHV

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

WUDLQLQJ

UHTXLUHPHQWV

RU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$YRLGDQFH 0DQHXYHU LQ 90&

( *3:6  7$:6 :DUQLQJ LQ ,0&

2EMHFWLYHV

2EMHFWLYHV

'HPRQVWUDWH

x
x

7R

DQG

FRQILUP

FRUUHFW

UHVSRQVH

WR

( *3:6  7$:6 LQ ,0& LQFOXGLQJ SLORW WHFKQLTXH

PXVW EH LPPHGLDWH

DQG FUHZ FRRUGLQDWLRQ

3LORW SXOOXS WHFKQLTXH ZLWK VSHFLDO UHIHUHQFH WR


%ULHILQJ

SLWFK IRUFH DV DSSOLFDEOH DQG SLWFK DWWLWXGH  DQG

UHLQIRUFH

( *3:6  7$:6 ZDUQLQJV DQG WKDW UHVSRQVH

&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

([SODLQ WKH REMHFWLYHV SRLQW RXW WKDW WKLV LV D WUDLQLQJ

H[HUFLVH

ORVV
WKDW

LV

QRW

LQWHQGHG

WR

EH

IRU

RU

)LJXUH 

WKH

)LJXUH 

SDUWLFXODU

DLUFUDIW

VLWXDWLRQDO

DZDUHQHVV

QDYLJDWLRQ

VHOHFWLRQ

UHDOLVWLF

DQ

HUURU

LQFRUUHFW

HJ

DQ

EHFDXVH

LQFRUUHFW

QRQSUHFLVLRQ

RI

DOWLWXGH

DSSURDFK

SURFHGXUH RU DQ\ RWKHU IDFWRUV 

RSHUDWLRQDO VLWXDWLRQ GHVFULEH WKH SXOOXS WHFKQLTXH


UHTXLUHG

RI

ODWHUDO

W\SH

DQG DSSOLFDEOH )&20 DQG

,QLWLDO FRQGLWLRQV

45+ 

(VWDEOLVK HLWKHU RQH RI WKH WZR IROORZLQJ VFHQDULRV


,QLWLDO FRQGLWLRQV

,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


RU

GHVFHQW RU LQ OHYHO IOLJKW

/DQGLQJ
WKH

3URFHGXUH

FRQILJXUDWLRQ

PD[LPXP

ODQGLQJ

$33

ZHLJKW

DW
RQ

RU
D

QHDU
W\SLFDO

GHJUHH JOLGH SDWK


,QVHUW DQ HOHFWURQLF PRXQWDLQ DKHDG RI WKH DLUFUDIW
3URFHGXUH

WDON WR IOLJKW FUHZ WKURXJKRXW WKH PDQHXYHU LQVLVWLQJ


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

UDGLR DOWLWXGHV DQG WUHQG HJ  IW GHFUHDVLQJ 

)LJXUH  

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

WKH PD[LPXP FOLPE SHUIRUPDQFH

EH

ORQJ

HQRXJK

SURILFLHQF\
5HSHDW

WKH

H[HUFLVH

DV

QHHGHG

XQWLO

DW

)LJXUH 
IRU

WKH

PDLQWDLQLQJ

 WKH PDQHXYHU VKRXOG


SLORW
WKH

WR

GHPRQVWUDWH

PD[LPXP

FOLPE

SHUIRUPDQFH

FUHZ

SURILFLHQF\ LV DFKLHYHG
5HSHDW WKH H[HUFLVH DV QHHGHG XS WR SURILFLHQF\
'HEULHILQJ
'HEULHILQJ

5HYLHZ WKH H[HUFLVH DV DSSURSULDWH


5HYLHZ WKH H[HUFLVH DV DSSURSULDWH

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

WUDQVLWLRQ FRXUVH DQG DOVR GXULQJ UHFXUUHQW WUDLQLQJ

( *3:6  7$:6 ZDUQLQJ

/2)7 VHVVLRQV

&),7

+RUL]RQWDO

DZDUHQHVV

VLWXDWLRQDO

DQG

UHVSRQVH

DZDUHQHVV

DQG

WR

YHUWLFDO

VLWXDWLRQDO DZDUHQHVV PXVW EH PDLQWDLQHG DW DOO


WLPHV

2EMHFWLYHV
x

7R PDLQWDLQ FUHZ DZDUHQHVV RI WKH &),7 KD]DUG DQG


WR

FRQILUP

FUHZ

SURILFLHQF\

LQ

UHVSRQGLQJ

)LJXUH  DQG )LJXUH  

3UHYHQWLYH DFWLRQV PXVW EH LGHDOO\ WDNHQ EHIRUH


( *3:6  7$:6 ZDUQLQJ

WR

D ( *3:6  7$:6 ZDUQLQJ

)LJXUH  

5HVSRQVH E\ 3) PXVW EH LPPHGLDWH

31) PXVW PRQLWRU DQG FDOO WKH UDGLR DOWLWXGH DQG


LWV

%ULHILQJ

WUHQG

WKURXJKRXW

WKH

WHUUDLQ

DYRLGDQFH

PDQHXYHU

1RQH

3XOOXS

PDQHXYHU

PXVW

EH

FRQWLQXHG

DW

PD[LPXP FOLPE SHUIRUPDQFH XQWLO ZDUQLQJ KDV


FHDVHG DQG WHUUDLQ LV FOHDUHG DV LQGLFDWHG E\ D
VWHDGLO\

,QLWLDO FRQGLWLRQV

LQFUHDVLQJ

)LJXUH  

UDGLRDOWLPHWHU

UHDGLQJ

(VWDEOLVK HLWKHU FOHDQ FRQILJXUDWLRQ RU LQLWLDODSSURDFK


FRQILJXUDWLRQ DQG WKH DVVRFLDWHG PDQHXYHULQJ VSHHG
DW

PD[LPXP

ODQGLQJ

ZHLJKW

LQ

OHYHO

IOLJKW

$VVRFLDWHG %ULHILQJ 1RWHV

RU

GHVFHQGLQJ

7KH IROORZLQJ %ULHILQJ 1RWHV VKRXOG EH UHYLHZHG


DORQJ
3URFHGXUH

&OHDU WKH DLUFUDIW WR GHVFHQG WR DQ DOWLWXGH EHORZ


WKH 06$ RU SURYLGH UDGDU YHFWRUV

WRZDUGV

IOLJKW

FUHZ

( *3:6

WDNH

FRUUHFWLYH

7$:6

DFWLRQ

ZDUQLQJ

EHIRUH

DV

LQIRUPDWLRQ

WR

FRPSOHWH

  2SHUDWLQJ 3KLORVRSK\  623V

  2SWLPXP 8VH RI $XWRPDWLRQ

DQ\

  (IIHFWLYH &UHZ$7& &RPPXQLFDWLRQV

  $OWLPHWHU 6HWWLQJ 8VH RI 5DGLR

VWDJH LQ WKH VHVVLRQ DW DQ DSSURSULDWH WLPH

$OWLPHWHU

9HULI\ WKH FUHZ UHVSRQVH WR ( *3:6  7$:6 DQG


FUHZ

DERYH

H[SHFWHG 

DQ HOHFWURQLF PRXQWDLQ FDQ EH LQVHUWHG DW D ODWHU

WKH

WKH

KLJK

JURXQG
,I

ZLWK

WKH &),7 DZDUHQHVV DQG WUDLQLQJ SURJUDP

FRRUGLQDWLRQ

GXULQJ

WKH

DYRLGDQFH

PDQHXYHU

'HEULHILQJ

5HYLHZ WKH H[HUFLVH DV DSSURSULDWH

  $OWLWXGH GHYLDWLRQV

  7HUUDLQ $ZDUHQHVV

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  )O\LQJ &RQVWDQWDQJOH 1RQSUHFLVLRQ


$SSURDFKHV

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

  )O\LQJ 9LVXDO $SSURDFKHV

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 $QQH[  RSHUDWLRQ RI $LUFUDIW 3DUW ,


,QWHUQDWLRQDO

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV $SSHQGL[  

)$5  7HUUDLQ DZDUHQHVV DQG ZDUQLQJ


V\VWHP 7$:6 

)$5   7HUUDLQ DZDUHQHVV DQG ZDUQLQJ


V\VWHP 7$:6 

)$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 
&),7 $Q (QFRXQWHU $YRLGHG
4XLWR (TXDGRU 0DUFK 
&UHZ UHVSRQVH WR 5$ $OHUW /LJKW DQG *3:6 :DUQLQJ

)LJXUH 
5HVSRQVH WR *3:6 :DUQLQJ
&RQYHQWLRQDO $LUFUDIW 0RGHOV

)LJXUH 
5HVSRQVH WR *3:6 :DUQLQJ
)O\E\ZLUH 3URWHFWHG $LUFUDIW 0RGHOV

)LJXUH 
5HVSRQVH WR *3:6 :DUQLQJ
7\SLFDO 3URILOHV

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

4,7 
925'0(

48,72 (&8$'25
0$5,6&$/ 68&5( ,17/

925 ,/6 5:< 


/2&  ,42

406 
925'0(
'  4,7

 IW

'  406

3XOOXS LQLWLDWHG
3URMHFWHG LPSDFW  IW

 IW

&OLPELQJ WR  IW

 IW

,/6 DSSURDFK 5:<   1LJKW WLPH  ,0&  5DLQ

406 925'0(  WXQHG LQVWHDG RI 4,7 

3URFHGXUH WXUQ IORZQ ZLWK UHIHUHQFH WR 406 KHQFH  10 IXUWKHU VRXWK

&UHZ DOHUWHG E\ IW UDGLRDOWLPHWHU OLJKW

&UHZ UHVSRQGHG WR *3:6 0. ,, ZDUQLQJ 7HUUDLQ  7HUUDLQ  3XOO XS  3XOO XS 

*3:6 ZDUQLQJ UHPDLQHG DFWLYDWHG GXULQJ  VHFRQGV

+LJK WHUUDLQ ZDV DYRLGHG E\ RQO\  IW 5$

)LJXUH 
&),7 $Q (QFRXQWHU $YRLGHG
4XLWR (TXDGRU 0DUFK 

'UDZLQJ DGDSWHG IURP )OLJKW ,QWR 7HUUDLQ $QG WKH *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP E\ 'RQ %DWHPDQ

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

 NW
 IWPQ

7HUUDLQ DORQJ WUDFN


7HUUDLQ LI IXOO SURFHGXUH WXUQ WR ULJKW

$OWLWXGH IW 06/

 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 

&),7 $Q (QFRXQWHU $YRLGHG


4XLWR (TXDGRU 0DUFK 
&UHZ UHVSRQVH WR 5$ $OHUW /LJKW DQG *3:6 :DUQLQJ

'UDZLQJ DGDSWHG IURP )OLJKW ,QWR 7HUUDLQ $QG WKH *URXQG 3UR[LPLW\ :DUQLQJ 6\VWHP E\ 'RQ %DWHPDQ

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 





$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

:+223 :+223 38// 83

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('

:KHQ IOLJKW SDWK LV VDIH DQG *3:6 ZDUQLQJ KDV FHDVHG 

'HFUHDVH SLWFK DWWLWXGH DQG DFFHOHUDWH

:KHQ VSHHG DERYH 9

/6

DV DSSOLFDEOH DQG 96 SRVLWLYH 

&OHDQ XS DLUFUDIW DV UHTXLUHG

)LJXUH 
5HVSRQVH WR *3:6 :DUQLQJ &RQYHQWLRQDO $LUFUDIW 0RGHOV

:+223 :+223 38// 83  7(55$,1 7(55$,1


:+223 :+223 38// 83

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

:KHQ IOLJKW SDWK LV VDIH DQG *3:6 ZDUQLQJ KDV FHDVHG 

'HFUHDVH SLWFK DWWLWXGH DQG DFFHOHUDWH

: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

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$  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

$  GHJUHH *6  &21) )8//  *HDU GRZQ

$OWLWXGH IW


0D[ /DQGLQJ :HLJKW


9 /6   NW
6HD /HYHO







3XOO XS WR IXOO EDFN VWLFN



















'LVWDQFH P

)LJXUH 
5HVSRQVH WR *3:6 :DUQLQJ
7\SLFDO 3URILOHV

5HVSRQVH WR *3:67$:6 3XOO8S 0DQHXYHU 7UDLQLQJ


3DJH 



AIRBUS INDUSTRIE
Flight Operations Support

Getting to Grips with


Approach-and-Landing Accidents Reduction

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

%RXQFH5HFRYHU\5HMHFWHG/DQGLQJ

Introduction
A rejected landing (also referred to as an aborted
landing) is defined as a go-around maneuver
initiated after touchdown of the main landing gear or
after bouncing.

Loss of control following a go-around initiated


after thrust reverser selection (because of a
vehicle obstructing the runway) and failure of
one reverser to stow.

Touch-and-go ( training only )


Although a rare occurrence, a rejected landing is a
challenging maneuver decided and conducted in an
unanticipated and unprepared manner.
The objective of this Briefing Note is to define:

Although a touch-an-go is essentially a training


exercise, the conditions required for the safe
conduct of this maneuver provide a valuable
introduction to the discussion of rejected landings.

Preconditions:

Applicable decision criteria for:

Full-stop landing; or,

Rejected landing and go-around; and,

Procedures and techniques


recovery, including:

for

Continued landing; or,

Rejected landing (i.e., go-around).

Four preconditions (usually referred to as the


4-No rule) must be observed prior to initiating
a touch-and-go:

bounce

No ground spoilers:
ground spoilers must not be armed or
manually selected after touchdown;

No autobrake:

Statistical data

No global statistical data are available on rejected


landing incidents or accidents but the following three
events illustrate the circumstances that may lead a
flight crew to reject the landing, and the possible
consequences of such a maneuver:

autobrake must not be armed;

No reverse:
thrust reversers must not be selected upon
touchdown; and,

No pedal braking:

Tail strike following a go-around initiated due to


directional control difficulties after thrust
reverser selection;

pedal braking must not be used after


touchdown.

Climb performance limitation following the


undue selection of reverse thrust during a
touch-and-go and failure of one reverser to
stow; and,

Performing a rejected landing in revenue service


(i.e., with ground spoilers and autobrake armed,
being ready to select reverse thrust upon
touchdown) creates an added challenge.

%RXQFH 5HFRYHU\ 5HMHFWHG /DQGLQJ


Page 1

AIRBUS INDUSTRIE
Flight Operations Support

Getting to Grips with


Approach-and-Landing Accidents Reduction

Aircraft reconfiguration:

Bouncing and bounce recovery

After touchdown for a planned touch-and-go,


the aircraft must be reconfigured to a takeoff
configuration:

Bouncing at landing usually is the result of one or


a combination of the following factors:

Loss of visual references;

Excessive sink rate;

Pitch trim reset within the takeoff trim setting


range;

Late flare initiation;

Incorrect flare technique;

Rudder trim reset (as applicable); and,

Excessive airspeed; and/or,

Throttle/thrust levers standup, as required (for


symmetrical engine acceleration).

Power-on touchdown (preventing the automatic


extension of ground spoilers, as applicable).

Flaps reset to a takeoff configuration;

The bounce recovery technique depends


the height reached during the bounce.

on

Task sharing:
Recovery from a light bounce (5 ft or less):

Performing a planned touch-and-go is a dynamic


and demanding maneuver in terms of task sharing:

The PF (trainee) is responsible for:

In case of a light bounced, the following typical


recovery technique can be applied:

Tracking the runway centerline;

Maintain or regain a normal landing pitch


attitude (do not increase pitch attitude as this
could cause a tailstrike);

The PNF (instructor) is responsible for:

Continue the landing;

Reconfiguring the aircraft for takeoff;

Use power as required to soften the second


touchdown; and,

Be aware of the increased landing distance.

Advancing the throttle levers slightly above


idle.

Resetting systems, as required;


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


land, as the remaining runway length might not be
sufficient to stop the aircraft.

Deciding to abort the takeoff, if required; and,


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 nonanticipated and non-prepared event) further


amplifies the importance for the PF and PNF to
strictly adhere to the defined task sharing and to
concentrate on their respective tasks.

Maintain or regain a normal landing pitch


attitude;

Initiate a go-around by triggering go-around


levers/switches and advancing throttle levers to
the go-around thrust position;

%RXQFH 5HFRYHU\ 5HMHFWHG /DQGLQJ


Page 2

AIRBUS INDUSTRIE
Flight Operations Support

Getting to Grips with


Approach-and-Landing Accidents Reduction

Commitment for Go-around

Maintain the landing flaps configuration or set


the required flaps configuration, as set forth in
the applicable FCOM;

Be ready for a possible second touchdown;

Be alert to apply forward force on control


column (side stick) and reset the pitch trim nose
down as engines spool up (conventional aircraft
models only);

When safely established in the go-around and


no risk of further touchdown exists (i.e., with a
steady positive rate of climb), follow normal goaround procedures; and,

Reengage automation, as desired, to reduce


workload.

If a rejected landing is initiated, the flight crew must


be committed to proceed with the go-around
maneuver and not retard the throttle levers in an
ultimate decision to complete the landing.
Reversing a go-around decision usually is observed
when the decision to reject the landing and to initiate
a go-around is taken by the first officer (as PF) but
is overridden by the captain.
Runway overruns, impact with obstructions and
major aircraft damage (or post impact fire) often are
the consequences of reversing an already initiated
rejected landing.

Summary of Key Points


The SOPs should define the respective decision
criteria for:

Commitment for Full-Stop Landing


Landing
incidents
and
accidents
clearly
demonstrate that after the thrust reversers have
been deployed (even at reverse idle), the landing
must be completed to a full stop, as a successful
go-around may not be possible.

Full-stop landing; or,

Rejected landing and go-around.

Procedures and techniques should be published for


bounce recovery, including:

The following occurrences have resulted in


a significantly reduced rate of climb or in departure
from controlled flight:

Thrust asymmetry resulting from asymmetrical


engine spool up (i.e., asymmetrical engine
acceleration characteristics from a ground idle
level);

Continued landing; or,

Rejected landing (i.e., go-around).

Associated Briefing Notes


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
the other one; and,

  %HLQJ 3UHSDUHG WR *RDURXQG

  )O\LQJ 6WDELOL]HG $SSURDFKHV

Severe thrust asymmetry resulting from one


thrust reverser failing to re-stow.

  3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG


2YHUUXQV

%RXQFH 5HFRYHU\ 5HMHFWHG /DQGLQJ


Page 3

AIRBUS INDUSTRIE
Flight Operations Support

Getting to Grips with


Approach-and-Landing Accidents Reduction

&KDSWHU

$SSURDFK7HFKQLTXHV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

)O\LQJ6WDELOL]HG$SSURDFKHV

,QWURGXFWLRQ

5XVKHG DQG XQVWDELOL]HG DSSURDFKHV DUH WKH ODUJHVW


FRQWULEXWRU\ IDFWRU LQ &),7 DQG RWKHU DSSURDFKDQG
ODQGLQJ DFFLGHQWV
5XVKHG DSSURDFKHV UHVXOW LQ LQVXIILFLHQW WLPH IRU WKH
IOLJKW FUHZ WR FRUUHFWO\
x 3ODQ
x 3UHSDUH DQG
x ([HFXWH D VDIH DSSURDFK
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG
GLVFXVVLRQ RI
x &ULWHULD GHILQLQJ D VWDELOL]HG DSSURDFK DQG
x )DFWRUV LQYROYHG LQ UXVKHG DQG XQVWDELOL]HG
DSSURDFKHV


)DFWRU

 RI (YHQWV

+LJK DQGRU IDVW DSSURDFK


RU
/RZ DQGRU VORZ DSSURDFK

 

)OLJKWKDQGOLQJ GLIILFXOWLHV 
 GHPDQGLQJ $7& FOHDUDQFHV
 DGYHUVH ZLQG FRQGLWLRQV

 

7DEOH 
)DFWRUV ,QYROYHG
)DFWRU

1RWH

)O\LQJ

VWDELOL]HG

VWDELOL]DWLRQ

DSSURDFKHV

FULWHULD

DQG

FRPSO\LQJ

DSSURDFK

ZLWK

JDWHV

WKH

GHILQHG

KHUHDIWHU GRHV QRW SUHFOXGH IO\LQJ D 'HOD\HG )ODSV


$SSURDFK DOVR FDOOHG D 'HFHOHUDWHG $SSURDFK DV
GLFWDWHG E\ $7& UHTXLUHPHQWV

6WDWLVWLFDO 'DWD

&RQWLQXLQJ DQ XQVWDELOL]HG DSSURDFK LV D FDXVDO


IDFWRU LQ   RI DOO DSSURDFKDQGODQGLQJ
DFFLGHQWV
7DEOH  DQG 7DEOH  VKRZ WKH IDFWRUV LQYROYHG LQ
UXVKHG DQG XQVWDELOL]HG DSSURDFKHV DQG WKH
FRQVHTXHQFHV RI FRQWLQXLQJ DQ XQVWDELOL]HG
DSSURDFK

 RI (YHQWV

2IIUXQZD\ WRXFKGRZQ
7DLO VWULNH
5XQZD\ H[FXUVLRQ RU RYHUUXQ

 

&),7

 

/RVV RI FRQWURO

 

7DEOH 
&RQVHTXHQFHV RI &RQWLQXHG $SSURDFK

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFK *DWHV 6WDELOL]DWLRQ +HLJKWV

'HILQLQJ D 6WDELOL]HG $SSURDFK

7KH IROORZLQJ DSSURDFK JDWHV DQG PLQLPXP


VWDELOL]DWLRQ KHLJKWV DUH UHFRPPHQGHG WR DFKLHYH
WLPHO\ VWDELOL]HG DSSURDFKHV

$Q DSSURDFK LV FRQVLGHUHG VWDELOL]HG RQO\ LI DOO WKH


IROORZLQJ FRQGLWLRQV DUH DFKLHYHG EHIRUH RU ZKHQ
UHDFKLQJ WKH DSSOLFDEOH VWDELOL]DWLRQ KHLJKW

0HWHRURORJLFDO
&RQGLWLRQV

+HLJKW DERYH
$LUILHOG (OHYDWLRQ

,0&

 IW

90&

 IW

)RU DOO W\SHV RI DSSURDFK

7KH DLUFUDIW LV RQ WKH FRUUHFW ODWHUDO DQG YHUWLFDO


IOLJKW SDWK
EDVHG RQ QDYDLGV JXLGDQFH RU YLVXDO UHIHUHQFHV

7DEOH 

2QO\ VPDOO FKDQJHV LQ KHDGLQJ DQG SLWFK

0LQLPXP 6WDELOL]DWLRQ +HLJKWV

DUH UHTXLUHG WR PDLQWDLQ WKLV IOLJKW SDWK

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\

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)RU YLVXDO DQG FLUFOLQJ DSSURDFKHV

)RU DOO W\SHV RI FRQVWDQWDQJOH DSSURDFKHV

)RU YLVXDO DSSURDFKHV

3DUDPHWHU

ZLQJV PXVW EH OHYHO RQ ILQDO

&DOORXW &ULWHULD

ZKHQ WKH DLUFUDIW UHDFKHV


 IW DERYH DLUILHOG HOHYDWLRQ

$LUVSHHG

$33  NW

/RZHU WKDQ 9

)RU FLUFOLQJ DSSURDFKHV

RU

ZLQJV PXVW EH OHYHO RQ ILQDO


ZKHQ WKH DLUFUDIW UHDFKHV

$33   NW

*UHDWHU WKDQ 9

 IW DERYH DLUILHOG HOHYDWLRQ

7DEOH 

([FHVVLYH IOLJKW
FDOORXWV FULWHULD
:KHQ

UHDFKLQJ

WKH

SDUDPHWHU

9HUWLFDO

GHYLDWLRQ

1RWH 

DSSOLFDEOH

VWDELOL]DWLRQ

,I WKH DSSURDFK UHTXLUHV PRUH WKDQ

KHLJKW

 IWPQ

DQG EHORZ D FDOORXW VKRXOG EH SHUIRUPHG E\ WKH


31)

LI

DQ\

SURYLGHG LQ

IOLJKW

*UHDWHU WKDQ  IWPQ

6SHHG

SDUDPHWHU

H[FHHGV

7DEOH  DQG 7DEOH 

WKH

YHUWLFDO VSHHG

OLPLWV

HJ IRU *6 FDSWXUH IURP DERYH 


3) DQG 31) VKRXOG GLVFXVV WKH
UHTXLUHG YHUWLFDO VSHHG

$33 LV FRQVLGHUHG WR EH
5()   NW RU 9 /6   NW DV DSSOLFDEOH 

7KH ILQDO DSSURDFK VSHHG 9


HTXDO WR 9
9

5()

3LWFK

/RZHU WKDQ 1RVH 'RZQ

$WWLWXGH

LV WKH UHIHUHQFH WDUJHW WKUHVKROG VSHHG LQ WKH

RU

IXOO IODSV ODQGLQJ FRQILJXUDWLRQ LH LQ WKH DEVHQFH


RI DLUVSHHG FRUUHFWLRQV EHFDXVH RI ZLQG ZLQGVKHDU

*UHDWHU WKDQ 1RVH 8S

RU QRQQRUPDO FRQILJXUDWLRQ 

5HIHU WR WKH DSSOLFDEOH 623V IRU DSSOLFDEOH SLWFK

%DQN

DWWLWXGH OLPLWV

$QJOH

*UHDWHU WKDQ  GHJUHHV


0RQLWRULQJ

WKH

JURXQG

VSHHG

SURYLGHV

*URXQG

DQ

0DLQWDLQLQJ WKH JURXQG VSHHG DERYH 9


SURYLGHV

DQ

VXGGHQ

KHDG

HQHUJ\
ZLQG

PDUJLQ
WR

WDLO

LQ

$33

UHDGLQHVV

ZLQG

VKLIW

IRU

WKH

XVXDOO\

7DEOH 

0DLQWDLQLQJ D PLQLPXP JURXQG VSHHG LV SHUIRUPHG


ZKHQ

IO\LQJ

LQ

PDQDJHGVSHHG

$33   NW

 NW

DVVRFLDWHG ZLWK ZLQG VKHDU

DXWRPDWLFDOO\

/RZHU WKDQ 9

6SHHG

DZDUHQHVV RI D SRVVLEOH LPSHQGLQJ ZLQG VKHDU

RQ

IO\E\ZLUH DLUFUDIW PRGHOV

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,Q

)RU /2&RQO\ DQG ,/6 DSSURDFKHV

DGGLWLRQ

VWDELOL]HG

DSSURDFK

SURYLGHV

WKH

IROORZLQJ EHQHILWV

3DUDPHWHU

&DOORXW &ULWHULD

/2& GHYLDWLRQ

/2&RQO\ DSSURDFK   GRW

0RUH WLPH DQG DWWHQWLRQ DUH DYDLODEOH IRU WKH


PRQLWRULQJ

RI

$7&

FRPPXQLFDWLRQV

ZHDWKHU

FRQGLWLRQV V\VWHPV RSHUDWLRQ

0RUH WLPH LV DYDLODEOH IRU HIIHFWLYH PRQLWRULQJ


DQG EDFNXS E\ WKH 31)

,/6 &$7 ,   GRW

'HILQHG IOLJKWSDUDPHWHUGHYLDWLRQ FULWHULD DQG


PLQLPXP

VWDELOL]DWLRQ

KHLJKW

VXSSRUW

WKH

GHFLVLRQ WR ODQG RU JRDURXQG DQG

,/6 &$7 ,,  &$7 ,,, 

 GRW

/DQGLQJ

SHUIRUPDQFH

LV

FRQVLVWHQW

ZLWK

SXEOLVKHG SHUIRUPDQFH

RU

)DFWRUV
,QYROYHG
$SSURDFKHV

([FHVVLYH 'HYLDWLRQ :DUQLQJ

*6 GHYLDWLRQ

LQ

8QVWDELOL]HG

7KH IROORZLQJ FLUFXPVWDQFHV IDFWRUV DQG HUURUV DUH

 GRW

RIWHQ FLWHG ZKHQ GLVFXVVLQJ UXVKHG DQG XQVWDELOL]HG

,/6

DSSURDFKHV

RU
([FHVVLYH 'HYLDWLRQ :DUQLQJ

)DWLJXH

3UHVVXUH RI IOLJKW VFKHGXOH LH PDNLQJ XS IRU


WDNHRII GHOD\ 

7DEOH 

VWDELOL]HG

DSSURDFK

LQFUHDVHV

+RUL]RQWDO VLWXDWLRQDO DZDUHQHVV

RU

FRQWUROOHULQGXFHG

SODQ SUHSDUH DQG H[HFXWH D VDIH DSSURDFKHV


7KLV LQFOXGHV DFFHSWLQJ UHTXHVWV IURP $7& IRU

WKH

IO\LQJ KLJKHU DQGRU IDVWHU WKDQ GHVLUHG RU IO\LQJ

IOLJKW FUHZ RYHUDOO VLWXDWLRQDO DZDUHQHVV

FUHZLQGXFHG

FLUFXPVWDQFHV UHVXOWLQJ LQ LQVXIILFLHQW WLPH WR

%HQHILWV RI D 6WDELOL]HG $SSURDFK


&RQGXFWLQJ

$Q\

VKRUWHU URXWLQJV WKDQ GHVLUHG


E\ FORVHO\

PRQLWRULQJ WKH IOLJKW SDWK

$7& LQVWUXFWLRQV WKDW UHVXOW LQ IO\LQJ WRR KLJK


DQGRU WRR IDVW GXULQJ WKH LQLWLDO DSSURDFK

6SHHG

DZDUHQHVV

E\

PRQLWRULQJ

VSHHG

GHYLDWLRQV

([FHVVLYH

DOWLWXGH

RU

H[FHVVLYH

DLUVSHHG

LH LQDGHTXDWH HQHUJ\ PDQDJHPHQW HDUO\ LQ

9HUWLFDO VLWXDWLRQDO DZDUHQHVV

WKH DSSURDFK

E\ PRQLWRULQJ

WKH YHUWLFDO IOLJKW SDWK DQG WKH UDWH RI GHVFHQW

(QHUJ\ DZDUHQHVV

/DWH UXQZD\ FKDQJH ODFN RI $7& DZDUHQHVV RI


WKH

E\ PDLQWDLQLQJ WKH HQJLQHV

WLPH

UHTXLUHG

WR

UHFRQILJXUH

WKH

DLUFUDIW

V\VWHPV IRU D QHZ DSSURDFK 

WKUXVW WR WKH OHYHO UHTXLUHG WR IO\ D GHJUHH


DSSURDFK SDWK DW WKH ILQDO DSSURDFK VSHHG RU DW

WKH PLQLPXP JURXQG VSHHG DV DSSOLFDEOH 

([FHVVLYH

KHDGGRZQ

UHSURJUDPPLQJ 

7KLV DOVR HQKDQFHV WKH JRDURXQG FDSDELOLW\

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

ZRUN

HJ

)06

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

6KRUW

RXWERXQG

OHJ

RU

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

VKRUW

GRZQZLQG

OHJ

HJ LQ FDVH RI XQLGHQWLILHG WUDIILF LQ WKH DUHD 

x
x
x
x

/DWH WDNHRYHU IURP DXWRPDWLRQ HJ LQ FDVH RI

$3 IDLOLQJ WR FDSWXUH WKH *6 XVXDOO\ GXH WR FUHZ


IDLOXUH WR DUP WKH DSSURDFK PRGH 
3UHPDWXUH RU ODWH GHVFHQW GXH WR DEVHQFH RI
SRVLWLYH )$) LGHQWLILFDWLRQ
,QVXIILFLHQW DZDUHQHVV RI ZLQG FRQGLWLRQV
 WDLOZLQG FRPSRQHQW
 ORZ DOWLWXGH ZLQG VKHDU
 ORFDO ZLQG JUDGLHQW DQG WXUEXOHQFH
HJ FDXVHG E\ WHUUDLQ RU EXLOGLQJV  RU
 UHFHQW ZHDWKHU DORQJ WKH ILQDO DSSURDFK SDWK
HJ GRZQGUDIW FDXVHG E\ D GHVFHQGLQJ FROG
DLU PDVV IROORZLQJ D UDLQ VKRZHU 
,QFRUUHFW DQWLFLSDWLRQ RI DLUFUDIW GHFHOHUDWLRQ
FKDUDFWHULVWLFV LQ OHYHO IOLJKW RU RQ D GHJUHH
JOLGHVORSH
)DLOXUH WR UHFRJQL]H GHYLDWLRQV RU WR UHPHPEHU
WKH H[FHVVLYHSDUDPHWHUGHYLDWLRQ FULWHULD
%HOLHI WKDW WKH DLUFUDIW ZLOO EH VWDELOL]HG DW WKH
VWDELOL]DWLRQ KHLJKW RU VKRUWO\ WKHUHDIWHU
([FHVVLYH FRQILGHQFH E\ WKH 31) WKDW WKH 3)
ZLOO DFKLHYH D WLPHO\ VWDELOL]DWLRQ
3)31) RYHU UHOLDQFH RQ HDFK RWKHU WR FDOO
H[FHVVLYH GHYLDWLRQV RU WR FDOO IRU D JRDURXQG
DQG
9LVXDO LOOXVLRQV GXULQJ WKH YLVXDO VHJPHQW

x
x
x
x

)XOO DSSURDFK IORZQ DW LGOH GRZQ WR WRXFKGRZQ


EHFDXVH RI H[FHVVLYH DLUVSHHG DQGRU DOWLWXGH
HDUO\ LQ WKH DSSURDFK
6WHHS DSSURDFK LH DERYH GHVLUHG IOLJKW SDWK
ZLWK H[FHVVLYH YHUWLFDO VSHHG XS WR
 IWPQ IOLJKW SDWK DQJOH XS WR
  JUDGLHQW  GHJUHH VORSH 
6WHHS DSSURDFKHV DSSHDU WR EH WZLFH DV
IUHTXHQW DV VKDOORZ DSSURDFKHV
6KDOORZ DSSURDFK LH EHORZ GHVLUHG JOLGH
SDWK 
/RZ DLUVSHHG PDQHXYHULQJ LH LQDGHTXDWH
HQHUJ\ PDQDJHPHQW 
([FHVVLYH EDQN DQJOH ZKHQ FDSWXULQJ WKH ILQDO
DSSURDFK FRXUVH XS WR GHJUHH 
$FWLYDWLRQ RI D *3:6 ZDUQLQJ
0RGH   6,1. 5$7(
0RGH $  7(55$,1 QRW IXOO IODSV 
0RGH %  7(55$,1 IXOO IODSV 
/DWH H[WHQVLRQ RI IODSV RU IODSV ORDG UHOLHI
V\VWHP DFWLYDWLRQ DV DSSOLFDEOH  UHVXOWLQJ LQ WKH
ODWH HIIHFWLYH H[WHQVLRQ RI IODSV
)OLJKWSDUDPHWHU H[FHVVLYH GHYLDWLRQ ZKHQ
FURVVLQJ WKH VWDELOL]DWLRQ KHLJKW
([FHVVLYH DLUVSHHG XS WR 9 5()   NW 
1RW DOLJQHG XS WR GHJUHH KHDGLQJ
GLIIHUHQFH 
([FHVVLYH EDQN DQJOH XS WR  GHJUHHV 
([FHVVLYH YHUWLFDO VSHHG
XS WR  IWPQ 
([FHVVLYH JOLGH VORSH GHYLDWLRQ
XS WR  GRWV 
([FHVVLYH EDQN DQJOH H[FHVVLYH VLQN UDWH RU
H[FHVVLYH PDQHXYHULQJ ZKLOH SHUIRUPLQJ
D VLGHVWHS






'HYLDWLRQV 2EVHUYHG
$SSURDFKHV

LQ

8QVWDELOL]HG

7KH IROORZLQJ SURFHGXUH GHYLDWLRQV RU IOLJKW SDWK


H[FXUVLRQV RIWHQ DUH REVHUYHG DORQH RU LQ
FRPELQDWLRQ LQ UXVKHG DQG XQVWDELOL]HG DSSURDFKHV
ILJXUHV SURYLGHG EHWZHHQ EUDFNHWV UHIOHFW H[WUHPH
GHYLDWLRQV REVHUYHG LQ DFWXDO XQVWDELOL]HG
DSSURDFKHV ZRUOGZLGH 

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

'HWHFW

6SHHGEUDNHV EHLQJ VWLOO H[WHQGHG ZKHQ LQ VKRUW


ILQDO LH EHORZ  IW DERYH DLUILHOG HOHYDWLRQ 

'HILQHG H[FHVVLYHSDUDPHWHUGHYLDWLRQ FULWHULD DQG

([FHVVLYH IOLJKWSDUDPHWHU GHYLDWLRQ V GRZQ WR

D GHILQHG VWDELOL]DWLRQ KHLJKW SURYLGH WKH 3) DQG

UXQZD\ WKUHVKROG

31) ZLWK D FRPPRQ UHIHUHQFH IRU HIIHFWLYH

+LJK UXQZD\WKUHVKROG FURVVLQJ XS WR  IW 

/RQJ IODUH DQG H[WHQGHG WRXFKGRZQ

0RQLWRULQJ LH HDUO\ GHWHFWLRQ RI GHYLDWLRQV 


DQG

%DFNXS

LH

WLPHO\

DQG

SUHFLVH

GHYLDWLRQ

FDOORXWV IRU HIIHFWLYH FRUUHFWLRQV 

&RPSDQ\V

3UHYHQWLRQ

6WUDWHJLHV

DQG

7R

3HUVRQDO /LQHVRIGHIHQVH

SURYLGH

WKH

WLPH

DYDLODELOLW\

DQG

DWWHQWLRQ

UHTXLUHG IRU DQ HIIHFWLYH PRQLWRULQJ DQG EDFNXS


WKH IROORZLQJ VKRXOG EH DYRLGHG

&RPSDQ\V

SUHYHQWLRQ

VWUDWHJLHV

DQG

SHUVRQDO

/DWH EULHILQJV

XQVWDELOL]HG DSSURDFKHV VKRXOG

8QQHFHVVDU\ UDGLR FDOOV HJ FRPSDQ\ FDOOV 

,GHQWLI\ DQG PLQLPL]H WKH IDFWRUV LQYROYHG

8QQHFHVVDU\ DFWLRQV HJ XVH RI $&$56  DQG

3URYLGH

1RQSHUWLQHQW LQWUDFRFNSLW FRQYHUVDWLRQV LH

OLQHVRIGHIHQVH

WR

UHGXFH

WKH

UHFRPPHQGDWLRQV

GHWHFWLRQ

DQG

QXPEHU

IRU

FRUUHFWLRQ

WKH

RI

RI

HDUO\

XQVWDELOL]HG

EUHDNLQJ WKH VWHULOHFRFNSLW UXOH 

DSSURDFKHV
5HGXFLQJ

7KH IROORZLQJ IRXUVWHS VWUDWHJ\ LV SURSRVHG

WKH

ZRUNORDG

DQG

FRFNSLW

$QWLFLSDWH

ZLWK PRUH DOHUWQHVV DQG DYDLODELOLW\ WR

'HWHFW

&RSH ZLWK IDWLJXH

&RUUHFW DQG

&RPSO\

ZLWK

DQ

XQDQWLFLSDWHG

$7&

UHTXHVW

HJ UXQZD\ FKDQJH RU YLVXDO DSSURDFK 

'HFLGH

$GDSW

WR

FKDQJLQJ

ZHDWKHU

FRQGLWLRQV

RU

DSSURDFK KD]DUGV DQG

$QWLFLSDWH

x
6RPH

GLVWUDFWLRQV

DQGRU LQWHUUXSWLRQV DOVR SURYLGHV WKH IOLJKW FUHZ

IDFWRUV

OLNHO\

WR

UHVXOW

LQ

UXVKHG

DQG

0DQDJH

V\VWHP

PDOIXQFWLRQ

HJ

IODSV

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

7KH

GHVFHQWDQGDSSURDFK

EULHILQJ

SURYLGHV

DQ

RSSRUWXQLW\ WR LGHQWLI\ DQG GLVFXVV IDFWRUV VXFK DV 

1RQVWDQGDUG

DOWLWXGH

RU

VSHHG

GHYHORS

LQWR

FKDOOHQJLQJ

RU

KD]DUGRXV VLWXDWLRQ LQ ZKLFK WKH RQO\ VDIH DFWLRQ LV


D JRDURXQG

UHVWULFWLRQV

&RUUHFWLYH DFWLRQV PD\ LQFOXGH

UHTXLULQJ D FDUHIXO HQHUJ\ PDQDJHPHQW 

$Q DJUHHG VWUDWHJ\ VKRXOG EH GHILQHG IRU WKH

7KH WLPHO\ XVH RI VSHHG EUDNHV RU WKH HDUO\


H[WHQVLRQ

PDQDJHPHQW RI WKH GHVFHQW GHFHOHUDWLRQ DQG

RI

ODQGLQJ

JHDU

WR

FRUUHFW

DQ H[FHVVLYH DOWLWXGH RU DQ H[FHVVLYH DLUVSHHG

VWDELOLVDWLRQ LH IROORZLQJ WKH FRQFHSWV RI QH[W


WDUJHWV DQG DSSURDFK JDWH 

([WHQGLQJ WKH RXWERXQG OHJ RU GRZQZLQG OHJ

7KLV VWUDWHJ\ ZLOO FRQVWLWXWH D FRPPRQ REMHFWLYH


DQG UHIHUHQFH IRU WKH 3) DQG 31)

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

'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

7KH DSSURDFK LV QRW VWDELOL]HG ZKHQ UHDFKLQJ


WKH PLQLPXP VWDELOL]DWLRQ KHLJKW RU

$Q\

IOLJKW

SDUDPHWHU

H[FHHGV

H[FHVVLYHGHYLDWLRQ

FULWHULD

WUDQVLHQWO\

EHORZ

ZKHQ

7KH GHILQHG QH[W WDUJHW VKRXOG EH DQ\ UHTXLUHG


WKH

RWKHU
WKH

FRPELQDWLRQ RI

UHODWHG
WKDQ

VWDELOL]DWLRQ KHLJKW
7KH IROORZLQJ EHKDYLRUV RIWHQ DUH LQYROYHG LQ WKH
FRQWLQXDWLRQ RI DQ XQVWDELOL]HG DSSURDFK

&RQILGHQFH LQ D TXLFN UHFRYHU\ LH SRVWSRQLQJ


WKH JRDURXQG GHFLVLRQ ZKHQ SDUDPHWHUV DUH
FRQYHUJLQJ WRZDUG WDUJHW YDOXHV 

2YHUFRQILGHQFH
UXQZD\

DQGRU

EHFDXVH
D

ORZ

RI

ORQJ

JURVVZHLJKW

DQG

GU\

$Q DOWLWXGH

$ FRQILJXUDWLRQ

$ VSHHG

$ YHUWLFDO VSHHG RU IOLJKW SDWK DQJOH DQG

$ SRZHU VHWWLQJ

QH[W WDUJHWV VKRXOG EH DFKLHYHG IRU WKH DSSURDFK WR

,QDGHTXDWH UHDGLQHVV RU ODFN RI FRPPLWPHQW WR

EH FRQWLQXHG
,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 DFWLRQ V VKRXOG EH WDNHQ ZLWKRXW GHOD\

:H ZLOO ODQG XQOHVV  WR

/HWV EH SUHSDUHG IRU D JRDURXQG DQG ZH

ZLOO ODQG LI WKH DSSURDFK LV VWDELOL]HG DQG LI

D JRDURXQG PXVW EH LQLWLDWHG LI

ZH KDYH VXIILFLHQW YLVXDO UHIHUHQFHV WR PDNH

7KH

D VDIH DSSURDFK DQG ODQGLQJ

'XULQJ WKH DSSURDFK DQG ODQGLQJ WKH VXFFHVVLYH

FRQGXFW D JRDURXQG

$ SRVLWLRQ

DOWKRXJK

DLUVSHHG DQGRU YHUWLFDO VSHHG DUH H[FHVVLYH

PLQLPXP

RU

ZLWK D VDIH ODQGLQJ DQG

UHPHPEHU

WKH

KHLJKW

WKH

ILQDO

FRQVWLWXWHV
DSSURDFK

7KH UHTXLUHG FRQILJXUDWLRQ DQG VSHHG LV QRW

7KH DLUFUDIW EHFRPHV XQVWDELOL]HG EHORZ WKH


VWDELOL]DWLRQ KHLJKW

$EVHQFH RI GHFLVLRQ GXH WR IDWLJXH RU ZRUNORDG


WR

DORQJ

UHDFKLQJ WKH VWDELOL]DWLRQ KHLJKW

WKH DSSURDFK ZDV FRQVLGHUHG EHLQJ FRPSDWLEOH

IDLOXUH

VWDELOL]DWLRQ

JDWH

REWDLQHG RU WKH IOLJKW SDWK LV QRW VWDELOL]HG ZKHQ

*RDURXQG HQYLVDJHG EXW QRW LQLWLDWHG EHFDXVH

LH

PLQLPXP

SDUWLFXODU

DSSOLFDEOH

H[FHVVLYH GHYLDWLRQ FULWHULD 

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

6XPPDU\ RI .H\ 3RLQWV

5HJXODWRU\ UHIHUHQFHV
x

7KUHH HVVHQWLDO SDUDPHWHUV QHHG WR EH VWDELOL]HG IRU


D VDIH DSSURDFK
$LUFUDIW WUDFN

)OLJKW SDWK DQJOH DQG

,;

EUHDNLQJRXW
WR

RI

YLVXDO

WKH

FORXG

RYHUFDVW

UHIHUHQFHV

WKH

DQG

SLORWV

FRUUHFWLRQ

WR

FRQWLQXH

WUDFNLQJ

LH

WKH

WKH

WRXFKGRZQ

WHQGHQF\

]RQH 

WR

PRYH

WKH GHVLUHG JOLGH SDWK LH GXFNXQGHU  DQG


DQG

6WDELOL]HG

$SSURDFK

JURXQG VSHHG

)$$ 'RFXPHQW $ $LU &DUULHU 2SHUDWLRQ

)$$ 'RFXPHQW  VWDWLQJ WKDW D VLQN UDWH


JUHDWHU

86

$LU

DVVRFLDWLRQ ZLWK WKH DERYH LQIRUPDWLRQ

  'HVFHQW DQG $SSURDFK 3URILOH


0DQDJHPHQW
  (QHUJ\ 0DQDJHPHQW GXULQJ
$SSURDFK

  %HLQJ 3UHSDUHG WR *RDURXQG

  )O\LQJ &RQVWDQWDQJOH 1RQSUHFLVLRQ


$SSURDFKHV

  )DFWRUV $IIHFWLQJ /DQGLQJ



IW

7UDQVSRUWDWLRQ

5HSRUW

&DUULHU



IWPQ

LV

DERYH

DLUILHOG

6DIHW\

%RDUG

176%$$6

,QVWUXPHQW

$SSURDFK $FFLGHQWV

7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHYLHZHG LQ

DSSUR[LPDWHO\

EHORZ

6SHFLDO

6WXG\ )OLJKW &UHZ &RRUGLQDWLRQ 3URFHGXUH LQ

WR

$VVRFLDWHG %ULHILQJ 1RWHV

  7KH )LQDO $SSURDFK 6SHHG

1DWLRQDO

176%

PDLQWDLQ WKH HQHUJ\ OHYHO

WKDQ

2WKHU 5HIHUHQFHV

WKH

DLPLQJ SRLQW FORVHU DQG WKXV GHVFHQG EHORZ

)LQDO DSSURDFK VSHHG

HOHYDWLRQ

WR UHPDLQ RQ WKH FRUUHFW IOLJKW SDWK XQWLO IODUH


UHVLVWLQJ

&KDSWHU

XQDFFHSWDEOH

FHQWHUOLQH

$LPLQJ SRLQW

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO

RI

SUHPDWXUHO\ DOLJQ WKH DLUFUDIW ZLWK WKH UXQZD\

 

VSHHG PRQLWRULQJ

WKH UXQZD\ FHQWHUOLQH UHVLVWLQJ WKH WHQGHQF\ WR

'RF

G   I  SURFHGXUHV IRU DOWLWXGH DQG YHUWLFDO

VKRXOG EH NHSW FRQVWDQW E\ PDLQWDLQLQJ WKH

3$16236

,QVSHFWRU +DQGERRN &KDSWHU  SDUDJUDSK

SHUFHSWLRQ RI WKH UXQZD\ DQG RXWVLGH HQYLURQPHQW

KHLJKW

2SHUDWLRQV

'RF  

PRQLWRU WKH VWDELOL]DWLRQ RI WKH DLUFUDIW

DQG *RDURXQG 3ROLF\ 

DQG YLVXDO FXHV VKRXOG EH XVHG WR DFKLHYH DQG

'ULIW

WUDQVSRUW

3DUDPHWHUV (OHPHQWV RI D 6WDELOL]HG $SSURDFK

HTXLSPHQW WKH PRVW DSSURSULDWH OHYHO RI DXWRPDWLRQ

$LU

9ROXPH , )OLJKW 3URFHGXUHV SDUWLFXODUO\ 3DUW

'HSHQGLQJ RQ WKH W\SH RI DSSURDFK DQG DLUFUDIW

WUDQVLWLRQLQJ

&RPPHUFLDO

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ VHUYLFHV


$LUFUDIW

$LUVSHHG

:KHQ

,QWHUQDWLRQDO

$HURSODQHV $SSHQGL[   

,&$2 $QQH[  2SHUDWLRQV RI $LUFUDIW 3DUW ,

'LVWDQFHV

)O\LQJ 6WDELOL]HG $SSURDFKHV


3DJH 

/DQGLQJ

6\VWHP

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH
)O\LQJ&RQVWDQW$QJOH1RQ3UHFLVLRQ$SSURDFKHV

,QWURGXFWLRQ

6WDWLVWLFDO 'DWD

3ODQQLQJ DQG FRQGXFWLQJ D QRQSUHFLVLRQ DSSURDFK


13$ LV FHUWDLQO\ WKH PRVW FKDOOHQJLQJ DQG
GHPDQGLQJ SDUW RI D IOLJKW WKLV LQFOXGHV
x 'HFLVLRQ PDNLQJ RQ VWUDWHJLHV DQG RSWLRQV
x (IIHFWLYH WDVNVKDULQJ
x &UHZ FRRUGLQDWLRQ PRQLWRULQJ DQG FDOORXWV 
DQG
x &),7 DZDUHQHVV UHVSRQVH WR *3:6 RU
(*3:6  7$:6 ZDUQLQJ 
9DULRXV W\SHV RI 13$V DOVR FDOOHG QRQ,/6
DSSURDFKHV VKDUH FRPPRQ IHDWXUHV EXW DOVR
LQYROYH VSHFLILF WHFKQLTXHV GHSHQGLQJ RQ WKH
QDYDLG EHLQJ XVHG RU RQ WKH VWUDWHJ\ EHLQJ DGRSWHG
IRU
x /DWHUDO DQG YHUWLFDO JXLGDQFH
x 'HVFHQGLQJ IURP WKH ILQDO DSSURDFK IL[ )$)
GRZQ WR WKH PLQLPXP GHVFHQW DOWLWXGH KHLJKW
0'$ +  DQG
x 0DNLQJ WKH GHFLVLRQ EHIRUH RU ZKHQ UHDFKLQJ
WKH 0'$ + 

$OPRVW   RI &),7 LQFLGHQWV DQG DFFLGHQWV RFFXU


GXULQJ VWHSGRZQ QRQSUHFLVLRQ DSSURDFKHV
7KH FRQVWDQWDQJOH QRQSUHFLVLRQ DSSURDFK
&$13$ WHFKQLTXH GHVFULEHG LQ WKLV %ULHILQJ 1RWH
VKRXOG EH LPSOHPHQWHG DQG WUDLQHG ZRUOGZLGH IRU
SUHYHQWLQJ &),7 DQG RWKHU DSSURDFKDQGODQGLQJ
DFFLGHQWV
'HILQLQJ 1RQ3UHFLVLRQ $SSURDFKHV

$ QRQSUHFLVLRQ DSSURDFK LV DQ LQVWUXPHQW DSSURDFK


WKDW GRHV QRW LQFRUSRUDWH YHUWLFDO JXLGDQFH
LH QRW XVLQJ D JOLGH VORSH EHDP 
7KH QDYDLG EHLQJ XVHG LV WKHUHIRUH SULPDULO\ XVHG
IRU ODWHUDO JXLGDQFH
1RQSUHFLVLRQ LQVWUXPHQW DSSURDFKHV LQFOXGH WKH
XVH RI WKH IROORZLQJ QDYDLGV
x 1'% 925 /2&RQO\ 925'0( /2&'0(
/2& %&. &56
1RWH 
7KH

/'$

6LPSOLILHG

7KLV %ULHILQJ 1RWH GHVFULEHV WKH IHDWXUHV FRPPRQ


WR DOO W\SHV RI QRQSUHFLVLRQ DSSURDFKHV DQG
WKH VSHFLILF IHDWXUHV RI HDFK LQGLYLGXDO W\SH RI
DSSURDFK
7KLV %ULHILQJ 1RWH KLJKOLJKWV WKH WHFKQLTXH RI
FRQVWDQWDQJOH FRQVWDQWVORSH QRQSUHFLVLRQ
DSSURDFK DV RSSRVHG WR WKH WUDGLWLRQDO VWHSGRZQ
WHFKQLTXH

/2&W\SH

'LUHFWLRQDO

'LUHFWLRQDO

)DFLOLW\

DSSURDFKHV

VKDUH

SURFHGXUHV

DSSOLFDEOH

PRVW

RI

WR

WKH
RWKHU

$LG 
DQG

6')

&LUFOLQJ

IHDWXUHV

DQG

QRQSUHFLVLRQ

DSSURDFKHV

1RWH 
*36

DSSURDFKHV

FRQYHQWLRQDO
51$9513

SHUIRUPHG

QRQSUHFLVLRQ
DSSURDFKHV

ZLWK

LQ

RYHUOD\

DSSURDFK
RU

ZLWKRXW

WR

DQG
*36

35,0$5< DOVR VKDUH PRVW RI WKH VWUDWHJLHV DQG


SURFHGXUHV GHVFULEHG LQ WKLV %ULHILQJ 1RWH

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

,QVWUXPHQW

DSSURDFKHV

XVXDOO\

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

FRQVLVW

RI

WKUHH

1RWHV 

DSSURDFK VHJPHQWV

7KH FKDUWHG 0'$ + LV UHIHUHQFHG WR WKH WRXFKGRZQ

]RQH HOHYDWLRQ 7'=(  WR WKH UXQZD\ 5:< RU WKH

,QLWLDO DSSURDFK 

DLUSRUW UHIHUHQFH SRLQW $37 RU $53 

)URP DQ LQLWLDO DSSURDFK IL[ ,$) WR WKH


LQWHUPHGLDWH IL[ ,)  LI GHILQHG


x

7KH ,&$2 3$16236 GHILQH WKH 0'$ + DV D


IXQFWLRQ RI WKH REVWDFOH FOHDUDQFH DOWLWXGH KHLJKW

0LQLPXP REVWDFOH FOHDUDQFH  IW

>2&$ + @

,QWHUPHGLDWH DSSURDFK 

0'$ +

)URP WKH ,) WR WKH ILQDO DSSURDFK IL[ )$) 

0LQLPXP REVWDFOH FOHDUDQFH IW DQG

9'3 &RQFHSW

)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


)RU

2&$ +   IW

DSSUR[LPDWHO\
LOOXVWUDWHG E\

0LQLPXP REVWDFOH FOHDUDQFH  IW


QRQSUHFLVLRQ

DSSURDFKHV

WKH

RQ

)LJXUH 

GHJUHH

JOLGH

SDWK

DV

LQWHUPHGLDWH

DSSURDFK LV D WUDQVLWLRQ VHJPHQW GXULQJ ZKLFK WKH

'HFLVLRQ DW 9'3 

DLUFUDIW LV FRQILJXUHG IRU WKH ILQDO DSSURDFK

/DQGLQJ JHDU H[WHQGHG

/DQGLQJ IODSV FRQILJXUDWLRQ HVWDEOLVKHG

6SHHG VWDELOL]HG RQ WKH ILQDO DSSURDFK VSHHG

$LUFUDIW DOLJQHG ZLWK WKH ILQDO DSSURDFK FRXUVH

 'HVFHQW IURP 9'3

RU
 *RDURXQG

9'3

0$3

0'$ +

DQG

)$) RU )')

/DQGLQJ FKHFNOLVW DQG EULHILQJV FRPSOHWHG

)LJXUH 

9LVXDO 'HVFHQW 3RLQW 9'3 &RQFHSW

'HFLVLRQ
/LPLW

0'$ +

7KH 9'3 ORFDWLRQ LV GHILQHG E\

*R$URXQG

'LVWDQFH IURP D 925'0( RU /2&'0(

RU
)$) RU )')

0$3

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

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

%HQHILWV

RI

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&RQVWDQW$QJOH

6WUDWHJLHV DQG 2SWLRQV

)LQDO

$SSURDFK
3ODQQLQJ
6WHSGRZQ

DSSURDFKHV

DUH

EDVHG

VROHO\

RQ

QRQSUHFLVLRQ

DQ

REVWDFOHFOHDUDQFH SURILOH VWHSGRZQ DSSURDFKHV

DQG RSWLRQV IRU

DUH QRW RSWLPL]HG IRU PRGHUQ FRPPHUFLDO MHWOLQHUV

3URYLGHV D PRUH VWDELOL]HG IOLJKW SDWK

5HGXFHV WKH ZRUNORDG GXULQJ WKLV FULWLFDO IOLJKW


x

ULVN

RI

HUURU

LQ

XVH

RI

VHOHFWHG

PRGHV

VHOHFWHG

KHDGLQJ

XVH RI )06 ODWHUDO QDYLJDWLRQ 1$9 PRGH 


XQWLO /2& LQWHUFHSWLRQ RU GRZQ WR 0'$ + 

SKDVH DQG
WKH

D5HD

PRGH DQG ORFDOL]HU PRGH  RU

(OLPLQDWHV

51$9

/DWHUDO JXLGDQFH 

)O\LQJ D FRQVWDQWDQJOH DSSURDFK SURILOH

RU

1$9LJDWLRQ DSSURDFK UHTXLUHV GHILQLQJ VWUDWHJLHV

VWHSGRZQ

9HUWLFDO JXLGDQFH 

GLVWDQFHV  DOWLWXGHV DQG WKH QHHG IRU D OHYHORII

XVH RI VHOHFWHG PRGHV DOWLWXGH KROG PRGH


DQG 96 PRGH  RU

DW WKH 0'$ + 

7KLV UHGXFHV WKH ULVN RI &),7

XVH RI )06 YHUWLFDO QDYLJDWLRQ GRZQ WR WKH


)$) RU EH\RQG DV DSSOLFDEOH LQ DFFRUGDQFH
ZLWK WKH )&20 

)LQDO GHVFHQW IURP )$) RU ILQDO GHVFHQW IL[ 

XVH RI D VWHSGRZQ GHVFHQW ZLWK OHYHO RII DW


0'$ +  RU

'HFLVLRQ

99

XVH RI D FRQWLQXRXV FRQVWDQWDQJOH GHVFHQW


ZLWK

*R$URXQG

GHFLVLRQ

EHIRUH

RU

ZKHQ

UHDFKLQJ

0'$ + 

0'$ +

1RWHV 

)$) RU )')

9'3

7KH UHTXLUHPHQW WR PDNH WKH GHFLVLRQ EHIRUH

0$3

RU

ZKHQ

UHDFKLQJ

DOORZDQFH

WR

WKH

GHVFHQG

0'$ +
EHORZ

WKH

LH

WKH

0'$ +

GXULQJ WKH JRDURXQG PDQHXYHU GLS WKUX


GHSHQGV

)LJXUH 

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

8VH RI LQHUWLDO IOLJKW SDWK YHFWRU DV DYDLODEOH 


ZLWK RU ZLWKRXW WKH DXWRSLORW $3 HQJDJHG

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$ QRQSUHFLVLRQ DSSURDFK PD\ EH FRQGXFWHG XVLQJ

&RQWLQXLQJ

HLWKHU

SHUPLWWHG RQO\ LI DW OHDVW RQH RI WKH YLVXDO UHIHUHQFHV

WKH

DSSURDFK

EHORZ

WKH

0'$ +

LV

LV GLVWLQFWO\ YLVLEOH DQG LGHQWLILDEOH E\ WKH 3) UHIHU WR

/DWHUDO QDYLJDWLRQ JXLGDQFH ZLWK PRQLWRULQJ RI

%ULHILQJ

UDZ GDWD

1RWH



$FTXLVLWLRQ

RI

9LVXDO

5HIHUHQFHV 

RU

7KH ODQGLQJ IROORZLQJ D QRQSUHFLVLRQ DSSURDFK LV

5DZ GDWD RQO\

D YLVXDO DQG PDQXDO ODQGLQJ

RU

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

5DZ GDWD VXSSRUWHG E\ WKH XVH RI WKH IOLJKW SDWK


YHFWRU DV DYDLODEOH 

7KH LPSRUWDQFH RI WDVN VKDULQJ VWDQGDUG FDOOV DQG

$ QRQSUHFLVLRQ DSSURDFK PD\ EH FRQGXFWHG ZLWK

DOWLWXGH

WKH $3 HQJDJHG

FDOORXWV PXVW EH HPSKDVL]HG

8VLQJ )06 JXLGDQFH ZLWK

YHUWLFDO

QDYLJDWLRQ

RU

SDUDPHWHU

H[FHVVLYHGHYLDWLRQ

5HIHU DOVR WR WKH IROORZLQJ %ULHILQJ 1RWHV

ODWHUDO QDYLJDWLRQ XQWLO /2& LQWHUFHSWLRQ RU


GRZQ WR WKH 0'$ +  DQG

FDOORXWV

GRZQ

WR

WKH

)$)

RU

 2SHUDWLQJ 3KLORVRSK\  623V

  6WDQGDUG &DOOV

EH\RQG DV DSSOLFDEOH LQ DFFRUGDQFH ZLWK


WKH )&20  WKHQ XVLQJ YHUWLFDO VSHHG PRGH

7KH

GRZQ WR WKH 0'$ +  RU

IROORZLQJ

RYHUYLHZ

RXWOLQHV

WKH

DFWLRQV

DQG

VWDQGDUG FDOOV UHTXLUHG E\ 623V DQG LOOXVWUDWHV WKH

8VLQJ VHOHFWHG JXLGDQFH KHDGLQJ PRGH DQG

W\SLFDO SKDVHV RI WKH DSSURDFK DQG WKH VHTXHQFH RI

DOWLWXGH

GHFLVLRQV LQYROYHG LQ D QRQSUHFLVLRQ DSSURDFK

KROG

RU

YHUWLFDO

VSHHG

PRGHV

DIWHU

OHDYLQJ WKH ,$) DQG GRZQ WR WKH 0'$ + 

7KH

DXWRWKURWWOHDXWRWKUXVW

V\VWHP

VKRXOG

'HVFHQW  $SSURDFK 3UHSDUDWLRQ

EH

HQJDJHG LQ WKH VSHHG PRGH

$QWLFLSDWH DQG FRQILUP WKH UXQZD\ LQ XVH DQG


WKH W\SH RI DSSURDFK WR EH FRQGXFWHG

&),7 $ZDUHQHVV

'HILQH

'XULQJ WKH ILQDO GHVFHQW WR WKH 0'$ +  3) DQG

31) VKRXOG PRQLWRU WKH YHUWLFDO IOLJKW SDWK DQG


ODWHUDO IOLJKW SDWK DQG VKRXOG QRW GHVFHQG WR WKH
QH[W

VWHSGRZQ

DVVRFLDWHG

WKH

DSSURDFK

VWUDWHJ\

IRU

ODWHUDO

JXLGDQFH

DOWLWXGH

GHVFHQW

IL[

EHIRUH

'0(

UHDFKLQJ

GLVWDQFH

RU

8VH RI VHOHFWHG KHDGLQJ PRGH DQG QDYDLG


UDZ GDWD

WKH
RWKHU

RU

UHIHUHQFH 

,Q ,0& RU DW QLJKW IOLJKW FUHZV VKRXOG UHVSRQG

8VH RI )06 ODWHUDO QDYLJDWLRQ 1$9 PRGH


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

'HVFHQGLQJ %HORZ 0'$

WKH )06 QDYLJDWLRQ DFFXUDF\ PHHWV WKH


FULWHULD IRU DSSURDFK
W\SLFDOO\ EHWWHU WKDQ  1P LQ WHUPLQDO

'XULQJ D QRQSUHFLVLRQ DSSURDFK WKH 3) LV HQJDJHG

DUHD

LQ HLWKHU KDQGIO\LQJ WKH DLUFUDIW RU VXSHUYLVLQJ WKH $3

DQG

DSSURDFK 

RSHUDWLRQ WKH 31) LV LQ FKDUJH RI DFTXLULQJ DQG


DQQRXQFLQJ WKH YLVXDO UHIHUHQFHV

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

EHWWHU

WKDQ

1P

IRU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

'HILQH

WKH

DSSURDFK

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

VWUDWHJ\

IRU

YHUWLFDO

WR

GHILQLQJ WKH 9'3 DQGRU 0$3

8VH

RI

DOWLWXGH

KROG

DQG

YHUWLFDO

VSHHG

PRGH

8VH RI )06 YHUWLFDO QDYLJDWLRQ PRGH GRZQ


WR WKH )$) RU EH\RQG DV DSSOLFDEOH LQ

9'3

&RQILUP

RU

WKH

FRQILUP

QDYDLGV

WKH

'0(

VHWXS

GLVWDQFH

IUHTXHQFLHV

&RPSXWH WKH H[SHFWHG JURXQG VSHHG

&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
SDWK DQG DQWLFLSDWHG JURXQG VSHHG DQG

,QVHUW WKH GHVLUHG UXQZD\ W\SH RI DSSURDFK DQG


67$5 IURP WKH GDWDEDVH LQ WKH )06 IOLJKW

SODQ

WKH

FRXUVHV DQG LGHQWLILFDWLRQ 

RU

&RQILUP WKH WLPLQJ IURP WKH )$) WR WKH 0$3 RU

JXLGDQFH

&RQILUP WKH XVH RI WKH )' RU RI WKH IOLJKW SDWK


YHFWRU DV DSSOLFDEOH 

(QWHU WKH GHVFHQW DQG VXUIDFH ZLQGV RQ WKH


DSSURSULDWH )06 SDJH DV DSSOLFDEOH

(QWHU

WKH

ODQGLQJ

FRQILJXUDWLRQ

DQG

'XULQJ 'HVFHQW

ZLQG

FRUUHFWLRQ RQ WKH DSSURSULDWH )06 SDJH DV


DSSOLFDEOH

&KHFN )06 QDYLJDWLRQ DFFXUDF\

&KHFN WKDW WKH )06 EHDULQJGLVWDQFH WR D

,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

6HWXS QDYDLGV LGHQWLI\ DV UHTXLUHG  DQG

3ODQ WKH GHVFHQW IRU UHDFKLQJ WKH ,$) DW WKH

YHUWLFDO

JXLGDQFH

LH

)06

RU

VHOHFWHG

JXLGDQFH 

SUHVFULEHG DOWLWXGH DQG SODQQHG DLUVSHHG


%HIRUH UHDFKLQJ WKH ,$)  +ROGLQJ IL[

$SSURDFK %ULHILQJ

WR

WKH

%ULHILQJ

1RWH

 $SSURDFK DQG

&RQILUP

WKH

DUULYDO

PLQLPXP

VDIH

,I )06 ODWHUDO QDYLJDWLRQ PRGH LV XVHG

DOWLWXGH

DQG

VSHHG

UHVWULFWLRQV

UHTXLUHG

5HYLHZ WKH DSSURDFK YHUWLFDO SURILOH VWHSGRZQ

EXJ
H[SHFWHG

YLVXDO

FKDUWHGSUHVFULEHG

DOWLWXGH

DQG

SODQQHG

DLUVSHHG

UHIHUHQFHV

DSSURDFK DQG UXQZD\ OLJKWLQJ 

$GMXVW WKH GHVFHQW UDWH IRU UHDFKLQJ WKH ,$) DW


WKH

WKH

&RQILUP WKH )06 1$9 PRGH HQJDJHPHQW


RQ )0$ DQG

6HWFKHFN WKH 0'$ + RQ WKH EDUR DOWLPHWHU

5HYLHZ

&KHFN 1' IRU FRUUHFW IOLJKW SODQ DQG IRU


FRUUHFW 72 :37

DOWLWXGHV DQG 0'$ + 

&KHFN WKH )06 QDYLJDWLRQ DFFXUDF\ OHYHO


)06 W\SH DQG VWDQGDUG 

5HYLHZ WKH DSSURDFK SURFHGXUH IL[HV DOWLWXGH


QDYDLGV HWF 

YHUWLFDO

HJ 5, RU +,*+ RU >@ GHSHQGLQJ RQ WKH

FRQVWUDLQWV

DQG

.HHS ERWK QDYLJDWLRQ GLVSOD\V 1'V LQ 0$3

06$ 

QDYLJDWLRQ

JUHDWHU WKDQ  1P 
5HYLHZ WHUUDLQ IHDWXUHV REVWDFOHV SRVLWLRQ DQG
RWKHU REVWDFOH FOHDUDQFH DZDUHQHVV LWHPV

ODWHUDO

PRGH XQOHVV WKH )06 QDYLJDWLRQ DFFXUDF\ LV

*RDURXQG EULHILQJ

IRU

QDYLJDWLRQ DV GHVLUHG

)RU D GHWDLOHG RYHUYLHZ RI WKH DSSURDFK EULHILQJ


UHIHU

.HHS WKH $3 HQJDJHG ZLWK )06 RU VHOHFWHG


PRGHV

(VWDEOLVK WKH GHVLUHG FRQILJXUDWLRQ DQG VSHHG

5HYLHZ WKH PLVVHGDSSURDFK SURFHGXUH

&OHDQ FRQILJXUDWLRQ RU VODWV H[WHQGHG DQG

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$GMXVW

WKH

ZHDWKHU

UDGDU

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

VHOHFWRU DQG DUP WKH ORFDOL]HU PRGH

ZHDWKHU

DYRLGDQFH

DQGRU

HQKDQFHG

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[

,I )06 ODWHUDO QDYLJDWLRQ PRGH ZLOO EH XVHG

EH\RQG WKH ,$) RU KROGLQJ IL[ NHHS ERWK 1'V LQ

DQG

FRQILUP

WKH

FRUUHFW

VHTXHQFLQJ

RI WKH )06 IOLJKW SODQ

0$3 PRGH

&KHFN

,I VHOHFWHG KHDGLQJ RU ORFDOL]HU PRGH ZLOO EH


XVHG WR FDSWXUH DQG WUDFN WKH ILQDO DSSURDFK

7KH 72 :37 VKRXOG EH WKH )$)

,I

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

RI VSHHG DQG DOWLWXGH FRQVWUDLQWV 

WR

SODQ

UHHQJDJH

LV
WKH

HVVHQWLDO
1$9

WR

PRGH

EH
LQ

DEOH

FDVH

RI

JRDURXQG

'XULQJ WKH KROGLQJ SDWWHUQ RU ZKHQ VXLWDEOH

%HIRUH UHDFKLQJ WKH )$) RU WKH )LQDO 'HVFHQW


&RQILJXUH WKH DLUFUDIW

3RLQW LI GLIIHUHQW 

6ODWV H[WHQGHG RQO\ RU DSSURDFK IODSV DQG

$VVRFLDWHG PDQHXYHULQJ VSHHG

$OLJQ WKH DLUFUDIW ZLWKLQ  GHJUHH ZLWK WKH ILQDO


DSSURDFK FRXUVH

6HOHFW WKH ODQGLQJ JHDU GRZQ

([LWLQJ WKH KROGLQJ SDWWHUQ

$UP WKH JURXQG VSRLOHUV

6HW ODQGLQJ IODSV

6HW DQG HVWDEOLVK WKH ILQDO DSSURDFK VSHHG

6HW WKH *$ DOWLWXGH LI WKH *$ DOWLWXGH LV WKH

6HOHFW WKH KROGLQJ (;,7 SURPSW LQ RUGHU WR DOORZ


WKH FRUUHFW VHTXHQFLQJ RI WKH )06 IOLJKW SODQ

/HDYLQJ WKH KROGLQJ SDWWHUQ

VDPH DV WKH )$) FURVVLQJ DOWLWXGH VHW WKH *$

DOWLWXGH RQO\ DIWHU LQLWLDWLQJ WKH ILQDO GHVFHQW 

,I )06 ODWHUDO QDYLJDWLRQ PRGH LV QRW XVHG XVH


WKH VHOHFWHG KHDGLQJ PRGH RU WKH WUDFN PRGH 
DV DYDLODEOH

WR

LQWHUFHSW

WKH

ILQDO

DSSURDFK

FRXUVH DV IROORZV

)RU

DQ

1'%

3HUIRUP WKH /$1',1* FKHFNOLVW

,I

DSSURDFK

VHW

WKH

RI

)06

YHUWLFDO

QDYLJDWLRQ

LV

QRW

YHUWLFDO QDYLJDWLRQ PRGH E\ VHOHFWLQJ WKH DOWLWXGH

ILQDO

KROG RU WKH YHUWLFDO VSHHG PRGH DV UHTXLUHG

DSSURDFK FRXUVH RQ WKH ,/6 FRXUVH VHOHFWRU


WKLV ZLOO VHW WKH ,/6 FRXUVH SRLQWHU RQ WKH 1'

DQG SURYLGH D FRXUVH UHIHUHQFH

XVH

DXWKRUL]HG EH\RQG WKH )$) GHVHOHFW WKH )06

,I 96 PRGH ZLOO EH XVHG DIWHU WKH )$) VHW WKH


SXEOLVKHG

RU

FRPSXWHG

YHUWLFDO

VSHHG

DQG

FRXUVH DQGRU

)RU D 925 RU 925'0( DSSURDFK VHW WKH


ILQDO DSSURDFK FRXUVH RQ WKH 925 FRXUVH

VHOHFWRU EXW GR QRW DUP WKH 925 PRGH

,I IOLJKW SDWK YHFWRU )39 DV DYDLODEOH ZLOO EH


XVHG

&DSWXUH DQG WUDFN WKH 925 FRXUVH XVLQJ

DIWHU

WKH

)$)

VHW

WKH

SXEOLVKHG

FRPSXWHG IOLJKW SDWK DQJOH )3$ DQG WUDFN

WKH VHOHFWHG KHDGLQJ RU WUDFN PRGH

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

RU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$W 0'$ +  UHDFKLQJ WKH 9'3 

$SSURDFKLQJ WKH )$) RU WKH )LQDO 'HVFHQW )L[


)')

7\SLFDOO\  QP WR  QP EHIRUH UHDFKLQJ WKH )$)

,I DGHTXDWH YLVXDO UHIHUHQFHV DUH DFTXLUHG 

 )') LH WR EHJLQ WKH GHVFHQW DW WKH )$)  )')

WKH

$3

DQG

FRQWLQXH

WKH

DSSURDFK YLVXDOO\ WKH DXWRWKURWWOHDXWRWKUXVW

RQ DQ DFFXUDWH SURILOH 

'LVFRQQHFW
VKRXOG

(QJDJH WKH 96 PRGH DQG FKHFN 96 PRGH

UHPDLQ

HQJDJHG

LQ

VSHHG

PRGH

GRZQ WR WKH UHWDUG SRLQW DV DSSOLFDEOH 

HQJDJHPHQW RQ )0$

x
6HW WKH SXEOLVKHG RU FRPSXWHG YHUWLFDO VSHHG
DV D IXQFWLRQ RI WKH JURXQG VSHHG

6HOHFW )39 DV DSSOLFDEOH 

6WDUW WLPLQJ DV UHTXLUHG  DQG

&URVVFKHFN DQG DQQRXQFH WKH QH[W IL[ RU '0(

,I DGHTXDWH YLVXDO UHIHUHQFHV DUH QRW DFTXLUHG 

,QLWLDWH D JRDURXQG DQG

2YHUIO\

WKH

0$3

WR

HQVXUH

DGHTXDWH

REVWDFOH FOHDUDQFH DQG IO\ WKH SXEOLVKHG


PLVVHGDSSURDFK SURFHGXUH RU IROORZ $7&
LQVWUXFWLRQV 

)DFWRUV LQ 1RQ3UHFLVLRQ $SSURDFKHV

GLVWDQFH DV DSSOLFDEOH DQG FURVVLQJ DOWLWXGH

7UDLQLQJ

IHHGEDFN

H[SHULHQFH

'XULQJ WKH GHVFHQW WRZDUGV WKH 0'$ + 

DQG

LQGLFDWH

WKDW

UHWXUQ
WKH

RQ

LQVHUYLFH

IROORZLQJ

DGYHUVH

IDFWRUV DQG HUURUV DUH LQYROYHG IUHTXHQWO\ LQ QRQ

0RQLWRU WKH YHUWLFDO VSHHG IOLJKW SDWK YHFWRU DV

SUHFLVLRQ DSSURDFKHV

DYDLODEOH  FRXUVH GLVWDQFHV DOWLWXGHV DQG FDOO

RXW WKH SXEOLVKHG YHUWLFDO SURILOH DW HDFK VDIHW\

RI

LQFRUUHFW

RU

RXWGDWHG

LQVWUXPHQW

DSSURDFK FKDUWV

DOWLWXGH  GLVWDQFH FKHFN

8VH

&KHFN DQG DQQRXQFH WKH DOWLWXGH GHYLDWLRQ

/DWH DLUFUDIW GHVFHQW SUHSDUDWLRQ

)06 QDYLJDWLRQ DFFXUDF\ QRW FKHFNHG

)06 IOLJKW SODQ QRW FRUUHFWO\ VHWXS

1DYDLGV

IURP FKDUWHG FURVVLQJ DOWLWXGH

$GMXVW WKH YHUWLFDO VSHHG DV UHTXLUHG DQG

&DOO RXW WKH QH[W IL[ RU '0( GLVWDQFH DQG


WKH DVVRFLDWHG FURVVLQJ DOWLWXGH

x
$W

FRUUHFWO\

WXQHG

IUHTXHQF\

6HW RU FRQILUP WKH JRDURXQG DOWLWXGH RQ )&8

0'$ +



UDWH

RI

GHVFHQW

LH 0'$ +   WR  IW 

QRW

LGHQWLILFDWLRQ RU FRXUVH 

,I WKH DSSURDFK KDV QRW EHHQ VXUYH\HG DQGRU

,QFRPSOHWH EULHILQJ

,QFRUUHFW FKRLFH RI DXWRSLORW PRGHV

,QFRUUHFW

HQWU\

RI

DXWRSLORW

RU

DXWRWKURWWOH

WDUJHWV

LI WKH RSHUDWLRQDO DXWKRULWLHV GR QRW DFFHSW WKH


0'$ + DV D '$ +  DQWLFLSDWH WKH JRDURXQG

GHFLVLRQ WR SUHYHQW XQGHUVKRRWLQJ WKH 0'$ + 

,QDGHTXDWH PRQLWRULQJ RI UDZ GDWD


$EVHQFH RI FURVVFKHFN DQGRU LQHIIHFWLYH EDFN
XS E\ 3) DQG 31)

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,QDFFXUDWH WUDFNLQJ RI ILQDO DSSURDFK FRXUVH


ZKHQ

XVLQJ

WKH

VHOHFWHG

KHDGLQJ

RU

WUDFN

%HJLQQLQJ WKH ILQDO GHVFHQW DW WKH H[DFW ILQDO


GHVFHQW IL[

PRGH

x
/DWH DLUFUDIW FRQILJXUDWLRQ

0DLQWDLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH DQG RU


YHUWLFDO

VSHHG

GXULQJ

WKH

ILQDO

GHVFHQW

VHJPHQW

)LQDO DSSURDFK VSHHG QRW VWDELOL]HG DW )$)

)DLOXUH

WR

DFFRXQW

IRU

SUHYDLOLQJ

KHDG

FRPSRQHQW ZKHQ FRPSXWLQJ WKH YHUWLFDO VSHHG


WDUJHW

IRU

WKH

ILQDO

FRQVWDQWDQJOH

$FTXLULQJ DQG DQQRXQFLQJ YLVXDO UHIHUHQFHV

&DOOLQJ WKH GHFLVLRQ WR ODQG RU JRDURXQG

1RW

ZLQG

GHVFHQW

VHJPHQW

GHVFHQGLQJ

EHORZ

WKH

0'$ +

EHIRUH

UHDFKLQJ WKH 9'3

,QFRUUHFW LGHQWLILFDWLRQ RI )$) RU ILQDO GHVFHQW

IL[ 

*RDURXQG DOWLWXGH QRW WLPHO\ VHW

3UHPDWXUH GHVFHQW EHORZ WKH QH[W VWHSGRZQ

$VVRFLDWHG %ULHILQJ 1RWHV

DOWLWXGH LI PXOWLSOH VWHSGRZQV RU EHORZ WKH


0'$ +  DQG

%HLQJ SUHSDUHG DQG PLQGHG WR JRDURXQG

7KH

IROORZLQJ

$EVHQFH RI LGHQWLILFDWLRQ RU WLPLQJ DV UHOHYDQW


RI WKH 9'3 RU 0$3

6XPPDU\ RI .H\ 3RLQWV


SRLQWV

3UHSDULQJ WKH )06 DV DSSOLFDEOH

&RPSOHWLQJ D GHVFHQWDQGDSSURDFK EULHILQJ

3ODQQLQJ DLUFUDIW FRQILJXUDWLRQ VHWXS

SURYLGH

H[SDQGHG

  6WDQGDUG 2SHUDWLQJ 3URFHGXUHV

  6WDQGDUG &DOOV

  (QHUJ\ 0DQDJHPHQW 'XULQJ


$SSURDFK

SUHFLVLRQ DSSURDFK VKRXOG LQFOXGH WKH IROORZLQJ NH\

'HWHUPLQLQJ WKH W\SH RI JXLGDQFH WR EH XVHG

1RWHV

7KH VXFFHVVIXO SUHSDUDWLRQ DQG FRQGXFW RI D QRQ

%ULHILQJ

LQIRUPDWLRQ WR VXSSOHPHQW WKH DERYH GLVFXVVLRQ

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  $FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 3URFHGXUHV IRU $LU QDYLJDWLRQ 6HUYLFHV


$LUFUDIW

2SHUDWLRQV

3$16236

'RF

 

9ROXPH , )OLJKW 3URFHGXUHV

0RQLWRULQJ WKH GHVFHQW SURILOH

0DQDJLQJ

,&$2 0DQXDO RI $OO :HDWKHU 2SHUDWLRQV 'RF


 

WKH

DLUFUDIW

HQHUJ\

GXULQJ

LQWHUPHGLDWH DQG ILQDO DSSURDFK

)$$

6SHFLDO

 

1RW

GHVFHQGLQJ

EHORZ

DQ

DOWLWXGH

EHIRUH

UHDFKLQJ WKH QH[W VWHSGRZQ IL[

'HWHUPLQLQJ WKH FRUUHFW IOLJKW SDWK DQJOH DQGRU


YHUWLFDO VSHHG IRU WKH ILQDO GHVFHQW VHJPHQW

)O\LQJ &RQVWDQW$QJOH 1RQ3UHFLVLRQ $SSURDFKHV


3DJH 

1RWLFH

WR

$LUPHQ

$)6

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

$FTXLVLWLRQRI9LVXDO5HIHUHQFHV

,QWURGXFWLRQ

&$37)2 WDVN VKDULQJ

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

$FTXLVLWLRQ RI YLVXDO UHIHUHQFHV

&RQGXFW RI ODQGLQJ DQG

&RQGXFW RI JRDURXQG

7KLV RSHUDWLQJ SKLORVRSK\ XVXDOO\ LV UHIHUUHG


WR

SKLORVRSKLHV DERXW WDVN VKDULQJ IRU

7KLV WDVN VKDULQJ SURYLGHV DQ DOWHUQDWLYH

DV

6KDUHG

DSSURDFK

RU

0RQLWRUHG

DSSURDFK RU 'HOHJDWHG KDQGOLQJ DSSURDFK

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

LQFOXGHV

3)31) WDVN VKDULQJ

7KH WDVN VKDULQJ IRU WKH DFTXLVLWLRQ RI YLVXDO

WKLV

'HVFHQGLQJ EHORZ WKH 0'$ + RU '$ + ZLWKRXW

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\ 

WKH XVH RI DXWRPDWLRQ LH RQ WKH OHYHO

&RQWLQXLQJ WKH DSSURDFK DIWHU WKH ORVV RI YLVXDO


UHIHUHQFHV

RI DXWRPDWLRQ DQG UHGXQGDQF\ 

DFFLGHQW

LQFRUUHFW YLVXDO UHIHUHQFHV HJ D OLJKWHG DUHD

UHIHUHQFHV  DQG

DSSURDFKDQGODQGLQJ

DGHTXDWH YLVXDO UHIHUHQFHV RU KDYLQJ DFTXLUHG

UHIHUHQFHV GHSHQGV RQ

LQ

HJ

EHFDXVH

RI

IDVW

PRYLQJ

31)

VKRXOG

UDLQVKRZHU RU IRJ SDWFK 

7KH $LUEXV ,QGXVWULH RSHUDWLQJ SKLORVRSK\


DQG WUDLQLQJ SKLORVRSK\ SURPRWH D 3)31)
WDVN

VKDULQJ

ZLWK

DFTXLVLWLRQ

RI

&),7 DZDUHQHVV

YLVXDO

UHIHUHQFHV E\

'XULQJ

31) IRU QRQSUHFLVLRQ DQG &$7 , ,/6


DSSURDFKHV DQG

GHVFHQW

3)

DQG

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
DSSURDFK

ILQDO

DQG VKRXOG QRW GHVFHQG EHORZ WKH FKDUWHG PLQLPXP

3) IRU &$7 ,,  &$7 ,,, ,/6 DSSURDFKHV

DXWRPDWLF

WKH

PRQLWRU WKH YHUWLFDO IOLJKW SDWK DQG ODWHUDO IOLJKW SDWK

DQG

ODQGLQJ

,Q ,0& RU DW QLJKW 3) VKRXOG UHVSRQG LPPHGLDWHO\

LV

WR DQ\ *3:6 ZDUQLQJ RU (*3:6  7$:6 ZDUQLQJ

FRQVLGHUHG

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

'HILQLQJ 9LVXDO 5HIHUHQFHV

:KHQ XVLQJ H[WHUQDO UHIHUHQFHV WKH DYDLODEOH YLVXDO


FXHV PXVW DOORZ WKH SLORW WR DVVHVV WKH SLWFK DWWLWXGH
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 

:KHQ

ORZ

YLVLELOLW\

DSSURDFK

LV

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

EHORZ

DQG

YLVLELOLW\

FRQGLWLRQV

WKH

OLJKWLQJ

WKH

'$ + 

WKH

GLIIHUHQW

HOHPHQWV

RI

HOHPHQW V H[SHFWHG WR EH DYDLODEOH DW WKH ILUVW

DSSURDFK OLJKW V\VWHP SURYLGH YLVXDO FXHV IRU

YLVXDO FRQWDFW VKRXOG EH GLVFXVVHG

&RQWLQXLQJ
'$ +

LV

WKH

DSSURDFK

SHUPLWWHG

RQO\

EHORZ
LI

DW

WKH

OHDVW

0'$ +
RQH

RI

WKH

$VVHVVLQJ WKH DLUFUDIW SRVLWLRQ GULIW DQJOH DQG


GLVWDQFH WR WKH WRXFKGRZQ ]RQH DQG

RU
WKH

IROORZLQJ YLVXDO UHIHUHQFHV LV GLVWLQFWO\ YLVLEOH DQG

3HUFHLYLQJ DQ\ UDWH RI FKDQJH GXULQJ WKH ILQDO


SKDVH RI WKH DSSURDFK

LGHQWLILDEOH DV GHWDLOHG LQ WKH RSHUDWRUV DSSOLFDEOH


UHJXODWLRQ 

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV

7KH DSSURDFK OLJKW V\VWHP $/6 

HJ

VHTXHQFHG

IODVKLQJ

OLJKWV

VWHDG\

7KH WDVN VKDULQJ IRU DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV

UXQZD\ DOLJQPHQW OLJKWV  IW RU  IW

DQG

FURVV EDUV

IRU

7KH >UXQZD\@ WKUHVKROG

WKH

IOLJKW

SDWK

DQG

DLUFUDIW

7KH W\SH RI DSSURDFK LH FULWLFDOLW\ RI WLPH


DYDLODEOH IRU DFTXLULQJ WKH YLVXDO UHIHUHQFHV 

7KH WKUHVKROG PDUNLQJV RU

DQG

7KH WKUHVKROG OLJKWV

7KH OHYHO RI DXWRPDWLRQ EHLQJ XVHG 

7KH UXQZD\ HQG LGHQWLILFDWLRQ OLJKWV 5(,/ 

7KH YLVXDO DSSURDFK VORSH LQGLFDWRU 9$6, RU

RU

3$3, 

PRQLWRULQJ

V\VWHPV YDULHV GHSHQGLQJ RQ 

KDQG IO\LQJ XVLQJ )' 

$3 HQJDJHG LH $3 PRQLWRULQJ  VLQJOH $3 RU


GXDO $3 DSSURDFK 

7KH WRXFKGRZQ ]RQH


7KH WRXFKGRZQ ]RQH PDUNLQJV

7KH

IRUPDO

DQQRXQFHPHQW

RI

YLVXDO

UHIHUHQFHV

VKRXOG EH OLPLWHG WR WKH UXQZD\ RU UXQZD\DLUSRUW

7KH WRXFKGRZQ ]RQH OLJKWV RU

HQYLURQPHQW DOWKRXJK DQQRXQFLQJ WKH YLHZ RI WKH

JURXQG PD\ EH FRQVLGHUHG 

7KH UXQZD\
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

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,Q &$7 ,,, ZHDWKHU FRQGLWLRQV DXWRPDWLF ODQGLQJ

7KH 3) LV HQJDJHG GLUHFWO\ LQ HLWKHU

XVXDOO\ LV PDQGDWRU\

+DQGIO\LQJ WKH DLUSODQH DQG IROORZLQJ WKH )'


RUGHUV ZKLOH PRQLWRULQJ LQVWUXPHQWV DQG QDYDLGV

&RQVHTXHQWO\ WKH WHUPV YLVXDO UHIHUHQFHV GR QRW

UDZ GDWD

KDYH WKH VDPH PHDQLQJ IRU &$7 ,, DQG &$7 ,,,


DSSURDFKHV

RU

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

)RU &$7 ,,, DSSURDFKHV KDYLQJ YLVXDO UHIHUHQFHV

UHIHUHQFHV

ZKLOH PRQLWRULQJ WKH IOLJKW SURJUHVV DQG EDFNLQJXS

PHDQV

WKH 3)

SRVLWLRQ

7KH

31)

VFDQV

DQQRXQFHV

DOWHUQDWLYHO\

LQVLGH

IOLJKWSDUDPHWHU

DQG

WR

YHULI\

WKH

DLUFUDIW

'$ 5$ '+ 
RU
LI

ZKDWHYHU

DGHTXDWH

YLVXDO

UHIHUHQFH

YLVXDO

LV

UHIHUHQFHV

LQ
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

2QH KXQGUHG DERYH WKHQ 0LQLPXP LI QR


UDGLRDOWLPHWHU

DXWRFDOORXW

LV

DYDLODEOH 

FXHV DUH ODWHU XVHG IRU PRQLWRULQJ WKH $3 JXLGDQFH

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


,I WKH
WKH

VHH

PLQLPXP YLVXDO FXHV WKDW PXVW EH DYDLODEOH DW WKH

9LVXDO
VLJKW 

WR

 DFFRXQW IRU WKLV LQWHUSUHWDWLRQ LQ GHILQLQJ WKH

DQG

DQQRXQFHV

DEOH

7KH 86 )$5  DQG WKH (XURSHDQ -$5236

RXWVLGH

GHYLDWLRQV

EHLQJ

31)

3)

FDOOV

PLJKW

9LVXDO

QRW

KDYH

FDOORXWV 
ZKLOH
YLVXDO

OHDQLQJ

IRUZDUG

UHIHUHQFHV

7KH 3) FDQ FRQFHQWUDWH KLVKHU DWWHQWLRQ RQ WKH

\HW

DFTXLVLWLRQ

EHFDXVH RI KLVKHU GLIIHUHQW YLHZLQJ DQJOH FRFNSLW

RI

YLVXDO

UHIHUHQFHV

SURJUHVVLYHO\

LQFUHDVLQJ KLVKHU H[WHUQDO VFDQQLQJ DV WKH '+ LV

FXWRII DQJOH 

DSSURDFKHG

7KH 3) FRQILUPV WKH DFTXLVLWLRQ RI YLVXDO UHIHUHQFHV

:KHQ

DQG DQQRXQFHV /DQGLQJ RU *R $URXQG 

DQ

PLQLPXPV

LI YLVXDO UHIHUHQFHV DUH QRW DGHTXDWH 

WUDQVLWLRQ

DSSURDFK
WKH
IURP

WLPH

LV

FRQGXFWHG

DYDLODEOH

LQVWUXPHQW

FORVH

IRU

WR

WKH

PDNLQJ

WKH

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

&$7 ,,  &$7 ,,, ,/6 DSSURDFKHV 

31)

PXVW

PDLQWDLQ

LQVWUXPHQW

UHIHUHQFHV

WKURXJKRXW WKH DSSURDFK DQG ODQGLQJ RU JRDURXQG


WR

&$7 ,,  &$7 ,,, ,/6 DSSURDFKHV DUH IORZQ PDNLQJ


XVH RI WKH DXWRPDWLF ODQGLQJ V\VWHP

0RQLWRU WKH IOLJKW SDWK DQG WKH LQVWUXPHQWV DQG

&$7 ,, DXWRPDWLF DSSURDFKHV FDQ EH IROORZHG E\

%H UHDG\ WR FDOO DQ\ IOLJKWSDUDPHWHU H[FHVVLYH


GHYLDWLRQ RU ZDUQLQJ

D PDQXDO ODQGLQJ DOWKRXJK WKH VWDQGDUG RSHUDWLQJ


SURFHGXUH LV WR XVH WKH DXWRODQG FDSDELOLW\ 

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

6KDUHG

$SSURDFK

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

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

KDQGOLQJ

DSSURDFK

SURYLGHV

5HJDUGOHVV RI ZKR ZDV WKH 3) IRU WKH VHFWRU


WKH )2 LV DOZD\V WKH 3) IRU WKH DSSURDFK

7KH &$37 LV 31) DQG PRQLWRUV WKH DSSURDFK

:KHQ UHDFKLQJ WKH '$ + RU EHIRUH GHSHQGLQJ

/DQGLQJ

WDNHV

&DOO /DQGLQJ DQG

7DNHRYHU FRQWUROV LH FRQWURO ZKHHO  VLGH


FRQWURO

RYHU

WKH

YLVXDO

FRQWUROV

DUH

QRW

DFTXLUHG

0\

FRQWUROV

DV

SHU

FRPSDQ\

,I YLVXDO UHIHUHQFHV DUH QRW DFTXLUHG DW '$ + 

UHIHUHQFHV

RU

623V

FRQGXFW WKH ODQGLQJ


,I

XVXDOO\

VWLFN DQG WKURWWOHWKUXVW OHYHUV DQG FDOO , KDYH

LH IOLJKW FRQWUROV DQG WKURWWOH OHYHUV DQG

FDOORXWV

,I YLVXDO UHIHUHQFHV DUH DFTXLUHG WKH &$37


FDOOV

DQG

,I YLVXDO UHIHUHQFHV DUH DFTXLUHG EHIRUH RU DW

7KH )2 3) FDOOV 0LQLPXP

DFWLRQV

'$ + 

RQ WKH RSHUDWRUV SROLF\ IRU &$7 ,,  &$7 ,,,

RI

)RU WKH &$37

DQG WKH DFTXLVLWLRQ RI WKH YLVXDO UHIHUHQFHV

VHTXHQFH

LQFOXGH WKH IROORZLQJ

&DOO *RDURXQG PRQLWRU DQG EDFNXS WKH )2


GXULQJ WKH JRDURXQG LQLWLDWLRQ DQG PLVVHG

WKH

DSSURDFK

&$37 FDOOV *RDURXQG DQG WKH )2 LQLWLDWHV


WKH JRDURXQG DQG IOLHV WKH PLVVHGDSSURDFK

)RU WKH )2


:KDWHYHU

WKH

WKH

PDLQWDLQV

)2

GHFLVLRQ

/DQGLQJ

LQVWUXPHQW

RU

*RDURXQG

UHIHUHQFHV

IRU

,I &$37 FDOOV /DQGLQJ

WKH FRPSOHWH DSSURDFK DQG ODQGLQJ RU JRDURXQG

'HSHQGLQJ RQ WKH )2 H[SHULHQFH WKH DERYH UROHV


FDQ EH UHYHUVHG
7KLV

WDVN

VKDULQJ

HOLPLQDWHV

WKH

WUDQVLWLRQ

IURP

LQVWUXPHQW

IO\LQJ

VHPLYLVXDO
EXW

UHIHUHQFHV

LQYROYHV

EDFN

WR

FKDQJHRYHU

RI

DSSURDFKHV WKH 3) LV DOVR WKH SLORWODQGLQJ  RU


RI

DSSURDFKHV

H[FHSW

DQG

WKURWWOH

OHYHUV

&DOO

*RDURXQG)ODSV

DQG

LQLWLDWH

DQ

LPPHGLDWH JRDURXQG

&$7 ,,  &$7 ,,, DSSURDFKHV RQO\ IRU DOO RWKHU

W\SHV

FRQWUROV

SRVVLEOH VXEWOH LQFDSDFLWDWLRQ 

FRQFHSW LV DSSOLFDEOH WR

$OO

,I &$37 GRHV QRW PDNH DQ\ FDOO RU GRHV QRW


WDNHRYHU

'HSHQGLQJ RQ WKH DLUOLQHV RSHUDWLQJ SKLORVRSK\ WKLV

,QLWLDWH LPPHGLDWHO\ WKH JRDURXQG DQG IO\ WKH


PLVVHGDSSURDFK

FRQWUROV DW D ODWH VWDJH LQ WKH DSSURDFK

&RQWLQXH PRQLWRULQJ LQVWUXPHQW UHIHUHQFHV

,I &$37 FDOOV *RDURXQG

IURP

LQVWUXPHQW IO\LQJ WR YLVXDO IO\LQJ DQG LQ FDVH RI D


JRDURXQG

&DOO <RX KDYH FRQWURO RU <RXU FRQWUROV DV SHU


FRPSDQ\V 623V

DQG PLVVHGDSSURDFK 

7KH FKDQJH RI
DSSURDFK

DXWRPDWLF

FRQWUROV

UHTXLUHV

DW

SUHFLVH

ODWH

FDOORXWV

VWDJH
DQG

RI

WKH

DFWLRQ

JHVWXUHV WR SUHYHQW DQ\ PLVXQGHUVWDQGLQJ DQGRU

ODQGLQJV ZKHUH WKH &DSWDLQ UHVXPHV FRQWURO

GHOD\HG DFWLRQ

HDUOLHU W\SLFDOO\ IURP  IW 5$ WR  IW 5$ 

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$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

6WDQGDUG 2SHUDWLQJ 3URFHGXUHV


7KH

LPSRUWDQFH

RI

WDVN

VKDULQJ

7KH

DQG

FUHZ

VKRXOG

PDLQWDLQ

OHYHO

IOLJKW

XQWLO

WKH

FRUUHFW IOLJKW SDWK LV HVWDEOLVKHG

VWDQGDUGV

FDOORXWV GXULQJ WKH ILQDO SKDVH RI WKH DSSURDFK


VKRXOG EH HPSKDVL]HG
/DWHUDO RIIVHW 
6WDQGDUG

FDOOV

IRU

FRQILUPLQJ

WKH

DFTXLVLWLRQ

RI
'HWHUPLQH DQ DLPLQJ SRLQW RQ WKH H[WHQGHG UXQZD\

YLVXDO UHIHUHQFHV YDU\ IURP DLUOLQH WR DLUOLQH

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

WKH ODWHUDO GHYLDWLRQ RU YHUWLFDO GHYLDWLRQ RIIVHW 

DQWLFLSDWH WKH DOLJQPHQW E\ EHJLQQLQJ WKH ILQDO WXUQ

SUHYHQW

RYHUVKRRWLQJ

WKH

UXQZD\

FHQWHUOLQH

VKRUWO\ EHIRUH FURVVLQJ WKH H[WHQGHG LQQHU UXQZD\


7KH

3)

&$37

GHWHUPLQHV

ZKHWKHU

WKH

HGJH OLQH

ODWHUDO

GHYLDWLRQ RU YHUWLFDO GHYLDWLRQ RIIVHW SRVLWLRQ FDQ


EH VDIHO\ FRUUHFWHG DQG DQQRXQFHV &RQWLQXH RU

/RVV 2I 9LVXDO 5HIHUHQFHV EHORZ 0'$ +

/DQGLQJ RU *RDURXQG

RU '$ +

5HFRYHU\ IURP 2IIVHW 3RVLWLRQ


5HFRYHU\

IURP

ODWHUDO

,I ORVV RI DGHTXDWH YLVXDO UHIHUHQFHV RFFXUV ZKHQ


EHORZ WKH 0'$ + RU '$ +  DQ LPPHGLDWH JR

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

VSDWLDO GLVRULHQWDWLRQ E\ YLVXDO LOOXVLRQV

DSSURSULDWH

>@

VKDOO

LPPHGLDWHO\

PLVVHGDSSURDFK

ZKHQHYHU >WKH FRQGLWLRQV

7KH
WKH

31)

LV

LQVWUXPHQWV

UHVSRQVLEOH
DQG

IRU

FDOOLQJ

IRU
DQ\

PRQLWRULQJ

IRU

H[HFXWH

DQ

SURFHGXUH

>@

RSHUDWLQJ

EHORZ

WKH

DXWKRUL]HG 0'$ >RU '+@ DUH QRW PHW

H[FHVVLYH

SDUDPHWHUGHYLDWLRQ IURP HVWDEOLVKHG FULWHULD

6XPPDU\ RI NH\ SRLQWV

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 ,,,

EHLQJ WRR KLJK PD\ UHVXOW LQ ODQGLQJ VKRUW RI WKH


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

,/6 DSSURDFKHV DQG DOO

VKDUHG DSSURDFKHV WKH )2 PXVW UHPDLQ KHDGGRZQ

SHUPLVVLEOH

VLQN

UDWH

XVXDOO\  IWPQ 

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV

2WKHU 5HIHUHQFHV

7KH IROORZLQJ %ULHILQJ 1RWHV FDQ EH UHYLHZHG WR

DPSOLI\ DQG FRPSOHPHQW WKH DERYH LQIRUPDWLRQ

  2SWLPXP 8VH RI $XWRPDWLRQ

  6WDQGDUG &DOOV

  9LVXDO ,OOXVLRQV $ZDUHQHVV

1DWLRQDO

6SHFLDO

,QWHUQDWLRQDO

&RPPHUFLDO

$LU

7UDQVSRUW

$HURSODQHV  

,&$2

0DQXDO

RI

$OO:HDWKHU

2SHUDWLRQV

'RF  

)$5  7DNHRII DQG ODQGLQJ XQGHU ,)5


UHTXLUHPHQW IRU LPPHGLDWH JRDURXQG LQ FDVH RI
ORVV RI YLVXDO UHIHUHQFHV ZKHQ EHORZ 0'$ + RU
'$ + GXULQJ D QRQSUHFLVLRQ DSSURDFK RU D
&$7 , ,/6 DSSURDFK

)$5  7DNHRII DQG ODQGLQJ XQGHU ,)5


UHTXLUHPHQW IRU LPPHGLDWH JRDURXQG LQ FDVH RI
ORVV RI YLVXDO UHIHUHQFHV ZKHQ EHORZ '$ + RU
5$

'+

GXULQJ

&$7

,,

RU

&$7

,,,

,/6

DSSURDFK

)$5



,QVWUXPHQW

DSSURDFK

SURFHGXUHV DQG ,)5 ODQGLQJ PLQLPXP

$& $ UHODWHG WR WKH ORVV RI DGHTXDWH


YLVXDO UHIHUHQFHV

)$$

$&



DQG

'

UHODWHG

WR

DXWRODQG DQG &$7 ,,  &$7 ,,, DSSURDFKHV

-$5236




$0&

236

$SSHQGL[

 E 

WR

-$5236

DQG

$LU

)OLJKW
&DUULHU

&UHZ

,(0

6DIHW\

%RDUG

WR

$SSHQGL[  WR -$5236  'HILQLWLRQ RI


UHTXLUHG YLVXDO UHIHUHQFHV IRU YDULRXV W\SHV DQG
FDWHJRULHV RI DSSURDFKHV

$FTXLVLWLRQ RI 9LVXDO 5HIHUHQFHV


3DJH 

&RRUGLQDWLRQ

,QVWUXPHQW

6\VWHP $SSURDFK $FFLGHQWV

,&$2 $QQH[  2SHUDWLRQV RI $LUFUDIW  3DUW ,

6WXG\

3URFHGXUH LQ

5HJXODWRU\ UHIHUHQFHV
x

7UDQVSRUWDWLRQ

176% 6SHFLDO 5HSRUW 176%$$6

  2SHUDWLQJ 3KLORVRSK\  623V

86

/DQGLQJ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

)O\LQJ9LVXDO$SSURDFKHV
6WDWLVWLFDO GDWD

,QWURGXFWLRQ

$FFHSWLQJ DQ $7& UHTXHVW IRU D YLVXDO DSSURDFK RU


UHTXHVWLQJ D YLVXDO DQ DSSURDFK VKRXOG EH
HYDOXDWHG FDUHIXOO\ DJDLQVW WKH IROORZLQJ GHFLVLRQ
FULWHULD
x &HLOLQJ DQG YLVLELOLW\ FRQGLWLRQV
x 'DUNQHVV RU WZLOLJKW 
x :HDWKHU DFWLYLW\
 ZLQG WXUEXOHQFH
 UDLQ VKRZHUV DQGRU
 IRJ RU VPRNH SDWFKHV
x &UHZ H[SHULHQFH ZLWK DLUSRUW DQG DLUSRUW
HQYLURQPHQW
 VXUURXQGLQJ WHUUDLQ DQGRU
 VSHFLILF DLUSRUW DQG UXQZD\ KD]DUGV
REVWUXFWLRQV 
x 5XQZD\ YLVXDO DLGV
 7\SH RI DSSURDFK OLJKWLQJ V\VWHP DQG
 $YDLODELOLW\ RI D 9$6, RU 3$3,
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG
GLVFXVVLRQ RI WKH RSHUDWLRQDO IDFWRUV LQYROYHG LQ WKH
SUHSDUDWLRQ FRQGXFW DQG PRQLWRULQJ RI D YLVXDO
DSSURDFK

9LVXDO $SSURDFKHV DFFRXQW IRU


x   RI DOO DSSURDFKDQGODQGLQJ DFFLGHQWV
x   RI IDWDO DFFLGHQWV
9LVXDO DSSURDFKHV DW QLJKW SUHVHQW D JUHDWHU ULVN
H[SRVXUH EHFDXVH RI IHZHU YLVXDO FXHV DQG
D JUHDWHU SRWHQWLDO IRU YLVXDO LOOXVLRQV DQG VSDWLDO
GLVRULHQWDWLRQ
'HILQLQJ D YLVXDO DSSURDFK

7KH -$5236  WKH 86 )$$ $HURQDXWLFDO


,QIRUPDWLRQ 0DQXDO $,0 DQG WKH ,&$2 SURYLGH
GLIIHUHQW GHILQLWLRQV IRU YLVXDO DSSURDFKHV
7KH 86 )$$ $,0 GHILQLWLRQ LV SURSRVHG DV
UHIHUHQFH IRU WKLV %ULHILQJ 1RWH
x >$ YLVXDO DSSURDFK LV@ DQ DSSURDFK FRQGXFWHG
RQ DQ LQVWUXPHQW IOLJKW UXOHV ,)5 IOLJKW SODQ
ZKLFK DXWKRUL]HV WKH SLORW WR SURFHHG YLVXDOO\
DQG FOHDU RI FORXGV WR WKH DLUSRUW
x 7KH SLORW PXVW DW DOO WLPHV KDYH HLWKHU WKH
DLUSRUW RU WKH SUHFHGLQJ DLUFUDIW LQ VLJKW
x 7KH YLVXDO DSSURDFK PXVW EH DXWKRUL]HG DQG
XQGHU WKH FRQWURO RI WKH DSSURSULDWH DLU WUDIILF
FRQWURO IDFLOLW\ DQG
x 5HSRUWHG ZHDWKHU DW WKH DLUSRUW PXVW EH FHLOLQJ
DW RU DERYH  IW DQG YLVLELOLW\  PLOHV RU
JUHDWHU

)O\LQJ 9LVXDO $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)O\LQJ D YLVXDO DSSURDFK DW QLJKW


+D]DUGV

DVVRFLDWHG

ZLWK

YLVXDO

7HUUDLQ DZDUHQHVV

DSSURDFKHV

:KHQ

DQG

ODQGLQJV DW QLJKW PXVW EH IXOO\ XQGHUVWRRG

VHOHFWLQJ

DW

QLJKW

IOLJKW

WKH

VXUURXQGLQJ

RU

DFFHSWLQJ

FUHZ
WHUUDLQ

YLVXDO

VKRXOG

EH

IHDWXUHV

DQG

DSSURDFK
DZDUH

RI

PDQPDGH

REVWDFOHV

$ YLVXDO DSSURDFK DW QLJKW VKRXOG EH FRQVLGHUHG


RQO\ LI

:HDWKHU LV VXLWDEOH IRU IOLJKW XQGHU 9)5

$ YLVXDO SDWWHUQ RU D SXEOLVKHG

,Q GDUNQHVV DQ XQOLJKWHG KLOOVLGH EHWZHHQ D OLJKWHG


DUHD DQG WKH UXQZD\ WKUHVKROG PD\ SUHYHQW WKH
IOLJKW

9,68$/ DSSURDFK

FUHZ

IURP

FRUUHFWO\

SHUFHLYLQJ

WKH

ULVLQJ

WHUUDLQ

FKDUW LV DYDLODEOH DQG XVHG

$ SDWWHUQ DOWLWXGH LV GHILQHG DQG

)OLJKW FUHZ LV IDPLOLDU ZLWK DLUSRUW KD]DUGV DQG

7KH REMHFWLYH RI D YLVXDO DSSURDFK LV WR FRQGXFW DQ

REVWUXFWLRQV

DSSURDFK

WKLV

LQFOXGHV

2EMHFWLYH

WKH

DYDLODELOLW\

RI

DFWLYH 127$0V 
$W QLJKW ZKHQ DQ LQVWUXPHQW DSSURDFK LV DYDLODEOH
SDUWLFXODUO\

DQ

,/6

DSSURDFK

DQ

LQVWUXPHQW

8VLQJ YLVXDO UHIHUHQFHV

%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

DW WKH ILQDO DSSURDFK VSHHG DQG

ZLWK DLUFUDIW DQG FUHZ UHDG\ IRU ODQGLQJ

IOLJKW

FUHZ

YHUWLFDO

DQG

KRUL]RQWDO

VLWXDWLRQDO

DZDUHQHVV SDUWLFXODUO\ GXULQJ WKH EDVH OHJ DQG


ZKHQ WXUQLQJ ILQDO
,I D SUHFLVLRQ DSSURDFK LV QRW DYDLODEOH VHOHFWLQJ DQ
DSSURDFK

VXSSRUWHG

E\

9$6,

RU

,I WKH DLUFUDIW LV QRW VWDELOL]HG DW  IW DERYH DLUILHOG

3$3,

HOHYDWLRQ RU LI WKH DSSURDFK EHFRPHV XQVWDEOH ZKHQ

DV DYDLODEOH VKRXOG EH WKH SUHIHUUHG RSWLRQ

EHORZ  IW DERYH DLUILHOG HOHYDWLRQ D JRDURXQG


PXVW EH LQLWLDWHG

9LVXDO $SSURDFK 2YHUYLHZ


7KH

IROORZLQJ

RYHUYLHZ

SURYLGHV

8VH RI DXWRPDWHG V\VWHPV

JHQHULF

GHVFULSWLRQ RI WKH YDULRXV SKDVHV DQG WHFKQLTXHV


7KH XVH RI

LQYROYHG LQ D YLVXDO DSSURDFKHV

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

UHFRPPHQGHG WR GLVFRQQHFW WKH DXWRSLORW FOHDU WKH

$ SXEOLVKHG 9,68$/ DSSURDFK FKDUW IRU WKH

7KH

YLVXDO

DSSURDFK

ILQDO

SKDVH

RI

WKH

DSSURDFK

LW

LV

IOLJKW GLUHFWRU EDUV NHHS WKH DXWRWKURWWOHDXWRWKUXVW

LQWHQGHG UXQZD\ RU

WKH

HQJDJHG LQ VSHHG PRGH DW SLORWV GLVFUHWLRQ DQG


FLUFXLW

SDWWHUQ

VHOHFW WKH IOLJKW SDWK YHFWRU V\PERO DV DYDLODEOH 

DOWLWXGH

FRQILJXUDWLRQ DQG VSHHG VFKHGXOH SXEOLVKHG LQ


WKH )&20 RU 45+

)O\LQJ 9LVXDO $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

%DVH OHJ

,QLWLDO  LQWHUPHGLDWH DSSURDFK

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

DSSURDFK
IRU

VHWXS

QDYDLGV

DVVRFLDWHG

PRQLWRULQJ

ZLWK

DQG

LQ

IRU

WKH

FDVH

WKH

LQVWUXPHQW

ODQGLQJ

RI

ORVV

UXQZD\

RI

(VWLPDWH

YLVXDO

WKH

WKUHVKROG

UHIHUHQFHV 

JOLGH

EDVHG

SDWK
RQ

DQJOH

WR

DYDLODEOH

WKH

UXQZD\

YLVXDO

FXHV

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

5HYLHZ DQG GLVFXVV WKH SXEOLVKHG PLVVHGDSSURDFK


SURFHGXUH

LI

GLIIHUHQW

IURP

WKH

,)5

VODWV

DQG

IO\

DW

WKH

EXJ

DQG

UDGLRDOWLPHWHU

RUGHU

'+

DV

IXQFWLRQ

RI

0RQLWRU

WKH

VWDUWLQJ

EHLQJ

FRUUHFWO\

WKH

ILQDO

VSHHG

YDULDWLRQV

SHUIRUP

DOWLWXGH

IRU

ZLQGVKHDU

FDOORXWV

FDOORXWV

DV

IRU

DQG
DQ

0DLQWDLQ YLVXDO VFDQQLQJ WRZDUG WKH DLPLQJ SRLQW


W\SLFDOO\  IW IURP WKH UXQZD\ WKUHVKROG WR
DYRLG DQ\ WHQGHQF\ WR LQDGYHUWHQWO\ GHVFHQG GXFN
XQGHU EHORZ WKH ILQDO DSSURDFK JOLGH SDWK XVH WKH

SDWWHUQ W\SLFDOO\ DLPLQJ DW WXUQLQJ EDVH OHJ ZLWK


GRZQ

DQG

LQVWUXPHQW DSSURDFK

&RQILJXUH WKH DLUFUDIW DV SHU WKH 623V RU FLUFXLW


JHDU

WXUQ

H[FHVVLYHSDUDPHWHUGHYLDWLRQ

GHVFHQW VHJPHQW RU WXUQLQJ EDVH OHJ

ODQGLQJ

JURXQG

DZDUHQHVV

0DLQWDLQ W\SLFDOO\  IW DERYH DLUILHOG HOHYDWLRQ


XQWLO

WKH

DERYH DLUILHOG HOHYDWLRQ RU SHU FRPSDQ\ 623V 

SUHYDLOLQJ DLUVSHHG DQG ZLQG FRPSRQHQW 

DOWLWXGH

FRPSOHWH

VWDELOL]HG DW WKH ILQDO DSSURDFK VSHHG E\  IW

IURP WKH UXQZD\ WKUHVKROG WLPH WKH RXWERXQG OHJ RU


DFFRUGLQJO\

WR

$LP DW EHLQJ IXOO\ DOLJQHG LH ZLWK ZLQJV OHYHO DQG

LQWHUFHSW WKH ILQDO DSSURDFK FRXUVH DW W\SLFDOO\  QP

IODSV

DUH
IURP

)LQDO DSSURDFK

DQG VWDELOL]HG DW  IW DERYH DLUILHOG HOHYDWLRQ

DSSURDFK

GHJUHH

WKH UHTXLUHG GULIW FRUUHFWLRQ

,Q RUGHU WR EH OLQHGXS RQ WKH ILQDO DSSURDFK FRXUVH

FKDUWHG

LQIRUPDWLRQ


HVWDEOLVKHG RQ WKH H[WHQGHG UXQZD\ FHQWHUOLQH ZLWK

2XWERXQG OHJ RU 'RZQZLQG OHJ

WKH

9$6,
ZLWKLQ

$QWLFLSDWH WKH FURVVZLQG HIIHFW DV DSSOLFDEOH LQ

WHUUDLQ DZDUHQHVV

RU

DQG

ZKHQ

ILQDO

FRUUHVSRQGLQJ

PD\ EH VHW DV SHU FRPSDQ\V 623V IRU HQKDQFHG

GRZQZLQG OHJ

RQO\

'R QRW H[FHHG GHJUHH EDQN DQJOH ZKHQ WXQLQJ

PDQHXYHULQJ VSHHG
%DURPHWULFDOWLPHWHU

GHYLDWLRQ

WKH ILQDO DSSURDFK FRXUVH

PLVVHG

DSSURDFK SURFHGXUH 
([WHQG

*6

UHOLDEOH

DQG

*6 GHYLDWLRQ LQGH[ RU WKH 9$6,  3$3, DV DYDLODEOH

JURXQG

IRU FURVVFKHFN 

VSRLOHUV DUPHG
'R QRW H[FHHG GHJUHH EDQN DQJOH ZKHQ WXUQLQJ
LQWR EDVH OHJ

)O\LQJ 9LVXDO $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)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

3UHVVXUH RI IOLJKW VFKHGXOH DGRSWLQJ VKRUWFXWV

LQ DQ DWWHPSW WR PDNH XS IRU GHOD\ 

&UHZLQGXFHG

RU

$7&LQGXFHG

FLUFXPVWDQFHV

LH

KLJK

DQG

IDVW

ZLWK

6KDOORZ

DSSURDFK

LH

EHORZ

GHVLUHG

JOLGH

SDWK 

DQG H[HFXWH WKH DSSURDFK

([FHVVLYH DOWLWXGH RU DLUVSHHG LH LQDGHTXDWH


HQHUJ\ PDQDJHPHQW HDUO\ LQ WKH DSSURDFK

DSSURDFK

H[FHVVLYH UDWH RI GHVFHQW 

UHVXOWLQJ LQ LQVXIILFLHQW WLPH RU GLVWDQFH WR SODQ

6WHHS

7RR VKRUW GRZQZLQG OHJ FLUFXLW SDWWHUQ  WRR

*3:6 DFWLYDWLRQ 


0RGH   6,1. 5$7(

0RGH $  7(55$,1 OHVV WKDQ IXOO IODSV 

0RGH %  7(55$,1 IXOO IODSV 

VKRUW RXWERXQG OHJ WHDUGURS SDWWHUQ RU WRR

FORVH LQWHUFHSWLRQ GLUHFW EDVH OHJ LQWHUFHSWLRQ 

)LQDODSSURDFKFRXUVH LQWHUFHSWLRQ WRR FORVH WR


WKH UXQZD\ WKUHVKROG EHFDXVH RI DQ LQVXIILFLHQW

RXWERXQG WHDUGURS OHJ RU GRZQZLQG OHJ

/DFN RI DZDUHQHVV RI WDLO ZLQG DQGRU FURVVZLQG


FRPSRQHQW RU IDLOXUH WR DFFRXQW IRU SUHYDLOLQJ

ZLQG FRPSRQHQW

,QFRUUHFW

FURVVZLQG DZDUHQHVV DQG FRUUHFWLRQ

DQWLFLSDWLRQ

RI

DLUFUDIW

GHFHOHUDWLRQ

([FHVVLYH

EDQN

DQG

UXQZD\

WR

JOLGH SDWK

RYHUVKRRW RU WR SHUIRUP D VLGHVWHS PDQHXYHU

H[WHQGHG

PDQHXYHULQJ

FDSWXUH

)DLOXUH WR UHFRJQL]H GHYLDWLRQV RU WR UHPHPEHU

WKH

DQJOH

FKDUDFWHULVWLFV LQ OHYHO IOLJKW RU RQ D GHJUHH

FHQWHUOLQH

8QVWDELOL]HG DSSURDFK ZLWK ODWH RU QR JRDURXQG


GHFLVLRQ DQG

WKH H[FHVVLYHSDUDPHWHUGHYLDWLRQ FULWHULD

x
x

/DWHUDOO\ XQVWDEOH ILQDO DSSURDFK GXH WR ODFN RI

,QDGYHUWHQWO\

GHVFHQGLQJ

EHORZ

GXFNLQJ

XQGHU WKH GHJUHH JOLGH SDWK

%HOLHI WKDW WKH DLUFUDIW ZLOO EH VWDELOL]HG DW WKH


VWDELOL]DWLRQ KHLJKW RU VKRUWO\ WKHUHDIWHU

31)

H[FHVVLYH

FRQILGHQFH

LQ

WKH

3)

6XPPDU\ RI .H\ 3RLQWV

LQ

DFKLHYLQJ D WLPHO\ VWDELOL]DWLRQ RU UHOXFWDQFH WR


7KH IROORZLQJ NH\ SRLQWV VKRXOG EH GLVFXVVHG GXULQJ

FKDOOHQJH WKH 3)

IOLJKW

FDOO

H[FHVVLYH

GHYLDWLRQV

RU

WR

FDOO

FUHZV

WUDLQLQJ

IRU

HQKDQFLQJ

VDIH

YLVXDO

DSSURDFKHV

3) DQG 31) H[FHVVLYH UHOLDQFH RQ HDFK RWKHU WR


IRU

D JRDURXQG

$VVHVVLQJ WKH FRPSDQ\ RU SHUVRQDO H[SRVXUH


LH RSHUDWLQJ HQYLURQPHQW 

9LVXDO LOOXVLRQV HJ EODFN KROH UXQZD\ VORSH

RIIDLUSRUW OLJKW SDWWHUQV VXFK DV EULJKWO\ OLJKWHG

,QDGYHUWHQW XQFRQVFLRXV PRGLILFDWLRQ RI WKH


DLUFUDIW

WUDMHFWRU\

WR

'HYHORSLQJ FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG


SHUVRQDO OLQHVRIGHIHQVH

SDUNLQJ ORWV RU VWUHHWV 

PDLQWDLQ

:HLJKLQJ WKH WLPH VDYHG DJDLQVW WKH SRVVLEOH


ULVN

FRQVWDQW

SHUFHSWLRQ RI YLVXDO UHIHUHQFHV DQG

x
/RVV

RI

JURXQG

UHIHUHQFHV

ZLWK

DLUSRUW
ERWK

3)

RU
DQG

UXQZD\
31)

$ZDUHQHVV RI DQG DFFRXQWLQJ IRU DOO ZHDWKHU


IDFWRUV

YLVXDO
ORRNLQJ

RXWVLGH WR UHDFTXLUH YLVXDO UHIHUHQFHV

$ZDUHQHVV RI VXUURXQGLQJ WHUUDLQ DQG REVWDFOHV

)O\LQJ 9LVXDO $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ 5HIHUHQFHV

$ZDUHQHVV RI DLUSRUW HQYLURQPHQW DLUSRUW DQG


UXQZD\ KD]DUGV LH EODFN KROH HIIHFW 

8VH RI D SXEOLVKHG YLVXDO DSSURDFK FKDUW RU

7XQLQJ DQG PRQLWRULQJ DOO DYDLODEOH QDYDLGV

2SWLPXP

XVH

RI

DXWRPDWLRQ

ZLWK

WLPHO\

UHYHUVLRQ WR KDQG IO\LQJ

-$5236  6XESDUW (  D  9LVXDO


DSSURDFK

0DLQWDLQLQJ YLVXDO FRQWDFW ZLWK UXQZD\ DQG RWKHU

FDOORXWV

DQG

H[FHVVLYH

DSSURDFKHV DQG
&RPSO\LQJ ZLWK DVVRFLDWHG JRDURXQG SROLF\

$VVRFLDWHG %ULHILQJ 1RWHV


7KH

IROORZLQJ

%ULHILQJ

1RWHV

SURYLGH

H[SDQGHG

LQIRUPDWLRQ RQ RSHUDWLRQDO DVSHFWV DQG WHFKQLTXHV


LQYROYHG LQ YLVXDO DSSURDFKHV

  2SHUDWLQJ 3KLORVRSK\  623V

  2SWLPXP 8VH RI $XWRPDWLRQ

  2SHUDWLRQV *ROGHQ 5XOHV

  6WDQGDUG &DOOV

  1RUPDO &KHFNOLVWV

  $SSURDFK DQG *RDURXQG %ULHILQJV

  $OWLPHWHU 6HWWLQJ 8VH RI 5DGLR


$OWLPHWHU

9LVXDO

)$5  7DNHRII DQG ODQGLQJ XQGHU ,)5

SDUDPHWHUVGHYLDWLRQ FDOORXWV DV IRU LQVWUXPHQW

31) VKRXOG PRQLWRU LQVWUXPHQWV LH EHLQJ

DOWLWXGH



)$$ $,0 3LORW&RQWUROOHU *ORVVDU\

3) VKRXOG IO\ DQG ORRN RXWVLGH LH EHLQJ

3HUIRUPLQJ

&KDSWHU

WUDIILF DW DOO WLPHV DQG

)$$ $& $ 3LORWV 6SDWLDO 'LVRULHQWDWLRQ

KHDG GRZQ 

KHDG XS  ZKLOH

$QQH[

/RVV RI YLVXDO UHIHUHQFHV

$GKHUHQFH WR GHILQHG 3)31) WDVN VKDULQJ

$SSURDFK &KDUWV

YLVXDO FLUFXLW SDWWHUQ

,&$2

  (QHUJ\ 0DQDJHPHQW GXULQJ


$SSURDFK

  7HUUDLQ &),7 $ZDUHQHVV

  9LVXDO ,OOXVLRQV $ZDUHQHVV

  )O\LQJ 6WDELOL]HG $SSURDFKHV

)O\LQJ 9LVXDO $SSURDFKHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&KDSWHU

/DQGLQJ7HFKQLTXHV

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

3UHYHQWLQJ5XQZD\([FXUVLRQVDQG2YHUUXQV
5XQZD\ H[FXUVLRQV DQG UXQZD\ RYHUUXQV PD\ RFFXU
IROORZLQJ DOO W\SHV RI DSSURDFKHV
x 9LVXDO
x 1RQSUHFLVLRQ RU
x 3UHFLVLRQ DSSURDFKHV

,QWURGXFWLRQ

5XQZD\ H[FXUVLRQV LQFOXGH WKH IROORZLQJ W\SHV RI


HYHQWV
x 9HHULQJ RII WKH UXQZD\ GXULQJ WKH ODQGLQJ UROO
RU
x 9HHULQJ RII WKH UXQZD\ RU WD[LZD\ ZKHQ YDFDWLQJ
WKH UXQZD\
5XQZD\ RYHUUXQV GHILQH HYHQWV ZKHUH WKH DLUFUDIW
UROORXW H[WHQGV EH\RQG WKH HQG RI WKH ODQGLQJ
UXQZD\
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI WKH
IDFWRUV LQYROYHG LQ UXQZD\ H[FXUVLRQV DQG UXQZD\
RYHUUXQV DQG VXJJHVWV WKH GHYHORSPHQW RI
FRUUHVSRQGLQJ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI
GHIHQVH

5XQZD\ H[FXUVLRQV DQG RYHUUXQV DUH REVHUYHG


UHJDUGOHVV RI GD\WLPH RU QLJKWWLPH FRQGLWLRQV
5XQZD\ H[FXUVLRQV DQG RYHUUXQV RIWHQ DUH
DVVRFLDWHG ZLWK RQH RU VHYHUDO RI WKH IROORZLQJ
ZHDWKHU FRQGLWLRQV
x /RZ YLVLELOLW\ RU IRJ
x +HDY\ UDLQ LH UXQZD\ FRQWDPLQDWHG ZLWK
VWDQGLQJ ZDWHU RU UXQZD\ VOLSSHU\ZKHQZHW 
x &ROG
ZHDWKHU RSHUDWLRQ LH UXQZD\
FRQWDPLQDWHG ZLWK VOXVK RU LFH  DQG
x 6WHDG\ RU JXVWLQJ FURVVZLQG RU WDLO ZLQG
FRPSRQHQW
5XQZD\ H[FXUVLRQ RU RYHUUXQ HYHQWV DOVR KDYH
EHHQ H[SHULHQFHG ZLWK JRRG ZHDWKHU DQG GU\
UXQZD\ FRQGLWLRQV

6WDWLVWLFDO 'DWD

5XQZD\ H[FXUVLRQV DQG RYHUUXQV DFFRXQW IRU


W\SLFDOO\   RI DOO DSSURDFKDQGODQGLQJ
DFFLGHQWV
(YHQW

5XQZD\ H[FXUVLRQ
5XQZD\ RYHUUXQ

 RI (YHQWV


 

)DFWRUV ,QYROYHG LQ 5XQZD\ ([FXUVLRQV

5XQZD\ H[FXUVLRQV RIWHQ DUH WKH UHVXOW RI WKH


IROORZLQJ RSHUDWLRQDO IDFWRUV DQG FLUFXPVWDQFHV

7DEOH 
5XQZD\ ([FXUVLRQV DQG 2YHUUXQV

:HDWKHU IDFWRUV

/DQGLQJ RYHUUXQV UHSUHVHQW   RI DOO REVHUYHG


UXQZD\ RYHUUXQ HYHQWV LH LQFOXGLQJ UXQZD\
RYHUUXQV IROORZLQJ D UHMHFWHG WDNHRII 

5XQZD\ FRQGLWLRQ ZHW RU FRQWDPLQDWHG E\


VWDQGLQJ ZDWHU VOXVK VQRZ RU LFH 
:LQG VKHDU

3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG 2YHUUXQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&URVVZLQG FRPSRQHQW

,QDFFXUDWH LQIRUPDWLRQ RQ ZLQG DQGRU UXQZD\

3HUIRUPDQFH IDFWRUV

5HYHUVHWKUXVW

HIIHFW

LQ

FURVVZLQG

DQG

RQ

FURVVZLQG

ODQGLQJ

WHFKQLTXHV

HJ GULIWLQJ GXULQJ WKH GHFUDE DQG DOLJQ SKDVH


DEVHQFH

RI

ODQGLQJ

GHFUDE

ZKHQ

ODQGLQJ

LQ

DQ

0(/

DLUFUDIW FRQILJXUDWLRQ HJ VODWV IODSV RU UROO

OLIW GXPSLQJ HJ JURXQG VSRLOHUV RU

EUDNLQJ FDSDELOLW\ HJ DQWLVNLG 

,QFRUUHFW DVVHVVPHQW RI ODQGLQJ GLVWDQFH IRU


SUHYDLOLQJ ZLQG DQG UXQZD\ FRQGLWLRQV DQG

KLJK

FURVVZLQG FRQGLWLRQV 

,QRSHUDWLYH

EUDNH V

QRW

DFFRXQWHG

IRU

SHU

0(/''* SURYLVLRQ

,QDSSURSULDWH GLIIHUHQWLDO EUDNLQJ E\ FUHZ

8VH RI QRVHZKHHOVWHHULQJ WLOOHU DW KLJK VSHHG

&UHZ WHFKQLTXH RU GHFLVLRQ IDFWRUV

DQG

GLVWDQFH

RU

VSRLOHUV 

&UHZ WHFKQLTXH RU GHFLVLRQ IDFWRUV


,QFRUUHFW

RI

PDOIXQFWLRQ

FRQGLWLRQ DIIHFWLQJ

FRQWDPLQDWHG UXQZD\

DVVHVVPHQW

IROORZLQJ DQ LQIOLJKW

FRQGLWLRQV DQG

,QFRUUHFW

8QVWDEOH DSSURDFK SDWK VWHHS DQG IDVW 

9DFDWLQJ WKH UXQZD\ DW DQ H[FHVVLYH VSHHG

/DQGLQJ IDVW XS WR 9

$33

  NW DW UXQZD\

WKUHVKROG  DQGRU

6\VWHPV IDFWRUV

UHVXOWLQJ LQ D ORQJ ODQGLQJ

$V\PPHWULF WKUXVW LH IRUZDUG WKUXVW RQ RQH


VLGH UHYHUVH WKUXVW RQ RSSRVLWH VLGH  RU

([FHVVLYH KHLJKW RYHU WKUHVKROG XS WR  IW

$EVHQFH

RI

JRDURXQG

GHFLVLRQ

ZKHQ

ZDUUDQWHG

8QFRPPDQGHG GLIIHUHQWLDO EUDNLQJ

&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

/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 

:HDWKHU IDFWRUV

)DLOXUH

WR

DVVRFLDWHG

DQWLFLSDWHG 

,QDFFXUDWH VXUIDFH ZLQG LQIRUPDWLRQ DQG

8QDQWLFLSDWHG

ZLQG

VKHDU

RU

WDLO

JURXQG

ZLWK

WKUXVW

VSRLOHUV
UHYHUVHUV

XVXDOO\
EHLQJ

LQRSHUDWLYH 

8QDQWLFLSDWHG UXQZD\ FRQGLWLRQ LH ZRUVH WKDQ

DUP

3RZHURQ WRXFKGRZQ LH SUHYHQWLQJ DXWRPDWLF


H[WHQVLRQ RI JURXQG VSRLOHUV 

ZLQG

)DLOXUH WR GHWHFW WKH QRQGHSOR\PHQW RI JURXQG


VSRLOHUV HJ DEVHQFH RI UHODWHG VWDQGDUG FDOO 

FRPSRQHQW

)RUZDUG

WKURWWOHWKUXVW

OHYHUV

PRYHPHQW

UHVXOWLQJ LQ WKH SUHPDWXUH UHWUDFWLRQ RI JURXQG


VSRLOHUV DQG LQ WKH ORVV RI DXWREUDNH

3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG 2YHUUXQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

%RXQFLQJ DQG LQFRUUHFW ERXQFH UHFRYHU\

6WDQGDUG RSHUDWLQJ SURFHGXUHV 623V 

/DWH EUDNLQJ RU ODWH WDNHRYHU IURP DXWREUDNH

'HILQH

FULWHULD

DSSURDFK

V\VWHP ZKHQ UHTXLUHG  DQG

DQG

DQG

FDOORXWV

GHILQH

IRU

PLQLPXP

VWDELOL]HG
VWDELOL]DWLRQ

KHLJKWV DSSURDFK JDWHV GHSHQGLQJ RQ ZHDWKHU

5HGXFHG

EUDNLQJ

HIILFLHQF\

ZKLOH

FRQGLWLRQV LH ,0& YHUVXV 90& 

DVVXULQJ

GLUHFWLRQDO FRQWURO LQ FURVVZLQG FRQGLWLRQV

'HILQH WDVN VKDULQJ DQG VWDQGDUG FDOOV IRU ILQDO


DSSURDFK DQG UROORXW SKDVHV DQG

6\VWHPV IDFWRUV

/RVV RI SHGDO EUDNLQJ RU

$QWLVNLG PDOIXQFWLRQ UHVXOWLQJ LQ DTXDSODQLQJ DV

[\Z IW P WR JR  LQ ORZ YLVLELOLW\ FRQGLWLRQV

HYLGHQFHG E\ H[WHQVLYH VSRWV RQ DOO DIIHFWHG

EDVHG RQ

,QFRUSRUDWH D FUHZ FDOORXW IRU UXQZD\ OHQJWK


UHPDLQLQJ HJ [\] IW P UXQZD\ UHPDLQLQJ RU

WLUHV 

UXQZD\OLJKWLQJ FRORU FKDQJH

UXQZD\GLVWDQFHUHPDLQLQJ

PDUNHUV

DV

DYDLODEOH  DQGRU

3UHYHQWLRQ 6WUDWHJLHV DQG /LQHVRI'HIHQVH

7KH IROORZLQJ SUHYHQWLRQ VWUDWHJLHV DQG OLQHVRI

RWKHU DYDLODEOH YLVXDO FXHV VXFK DV UXQZD\


RU WD[LZD\ LQWHUVHFWLRQV 

GHIHQVH VKRXOG EH LPSOHPHQWHG WR DGGUHVV WKH


IDFWRUV LQYROYHG LQ UXQZD\ H[FXUVLRQV DQG RYHUUXQV

3HUIRUPDQFH GDWD
3ROLFLHV

3XEOLVK ODQGLQJ GLVWDQFHV IRU YDULRXV

'HILQH SROLF\ DQG SURFHGXUHV WR SURPRWH WKH


FRQGLWLRQV IRU D VDIH ODQGLQJ DUH QRW DFKLHYHG

LH GLVFRXUDJLQJ DQ\ DWWHPSW WR UHVFXH ZKDW LV

OLNHO\ WR EH DQ KD]DUGRXV ODQGLQJ 

EUDNHV

DUH

UHSRUWHG

RI

EUDNLQJ

LH

SHGDO

EUDNLQJ

RU

UXQZD\ FRQGLWLRQV DQG

3URYLGH

IOLJKW

FUHZV

ZLWK

ODQGLQJ

GLVWDQFH

FRUUHFWLRQV IRU UXQZD\V IHDWXULQJ

'HILQH SROLF\ WR HQVXUH WKDW LQRSHUDWLYH EUDNHV


FROG

W\SH

DXWREUDNH  DQG

UHDGLQHVV DQG FRPPLWPHQW WR JRDURXQG LI WKH

LQ

WKH

DLUFUDIW

ORJERRN DQG DFFRXQWHG IRU LQ DFFRUGDQFH ZLWK

GRZQKLOO VORSH DQGRU

KLJK HOHYDWLRQ

WKH 0(/

&UHZ WHFKQLTXHV
'HILQH

SROLF\

DQG

SURFHGXUHV

IRU

UHMHFWHG

ODQGLQJ LH ERXQFH UHFRYHU\ 

3XEOLVK

SURFHGXUHV

FURVVZLQG
'HILQH SROLF\ DQG SURFHGXUHV SURKLELWLQJ ODQGLQJ

DQG

ODQGLQJ

SURYLGH

WHFKQLTXH

WUDLQLQJ

LH

IRU

FUDEEHG

DSSURDFK ZLWK ZLQJVOHYHO 

EH\RQG WKH SXEOLVKHG WRXFKGRZQ SRLQW ]RQH 

DQG

'HILQH

SROLF\

HQFRXUDJLQJ

ILUP

WRXFKGRZQ

3XEOLVK

SURFHGXUHV

GHFUDE

WHFKQLTXH

DQG

SURYLGH

GHSHQGLQJ

WUDLQLQJ

RQ

IRU

FURVVZLQG

FRPSRQHQW DQG UXQZD\ FRQGLWLRQ LH FRPSOHWH

ZKHQ RSHUDWLQJ RQ D UXQZD\ FRQWDPLQDWHG ZLWK

GHFUDE SDUWLDO GHFUDE RU DEVHQFH RI GHFUDE 

VWDQGLQJ ZDWHU RU VOXVK

3XEOLVK

SURFHGXUHV

DXWREUDNH

V\VWHP

FRQWDPLQDWHG UXQZD\

3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG 2YHUUXQV


3DJH 

IRU

DQG

RSWLPXP
WKUXVW

XVH

RI

UHYHUVHUV

RQ

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

6XPPDU\ RI NH\ SRLQWV

3URYLGH UHFRPPHQGDWLRQV IRU WKH XVH RI UXGGHU


GLIIHUHQWLDO

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

3XEOLVK VSHFLILF UHFRPPHQGDWLRQV IRU DLUFUDIW


ODWHUDO DQG GLUHFWLRQDO FRQWURO DIWHU FURVVZLQG

(YHQWV UHVXOWLQJ IURP DQ XQVWDELOL]HG DSSURDFK

(YHQW

ODQGLQJ
UHVXOWLQJ

IURP

DQ

LQFRUUHFW

IODUH

WHFKQLTXH
&UHZ DZDUHQHVV

(QVXUH

IOLJKW

FUHZV

DZDUHQHVV

DQG

(YHQWV UHVXOWLQJ IURP XQDQWLFLSDWHG RU PRUH


VHYHUHWKDQH[SHFWHG

XQGHUVWDQGLQJ RI DOO IDFWRUV DIIHFWLQJ ODQGLQJ

DGYHUVH

ZHDWKHU

FRQGLWLRQV

GLVWDQFHV

(QVXUH

IOLJKW

FUHZV

XQGHUVWDQGLQJ

RI

DZDUHQHVV

FRQGLWLRQV

DQG

FRQGXFLYH

GXPSLQJ RU EUDNLQJ HIILFLHQF\

WR

K\GURSODQLQJ

(YHQWV UHVXOWLQJ IURP UHGXFHG RU ORVV RI OLIW

(YHQWV

UHVXOWLQJ

IURP

DQ

DEQRUPDO

FRQILJXUDWLRQ LQFOXGLQJ
(QVXUH

IOLJKW

FUHZV

DZDUHQHVV

DQG

XQGHUVWDQGLQJ RI FURVVZLQG DQG ZKHHO FRUQHULQJ

DLUFUDIW GLVSDWFK XQGHU PLQLPXP HTXLSPHQW


OLVW >0(/@  GLVSDWFK GHYLDWLRQ JXLGH >''*@

LVVXHV

RU

(QVXUH IOLJKW FUHZV DZDUHQHVV RI ZLQGVKHDU


KD]DUGV DQG GHYHORS FRUUHVSRQGLQJ SURFHGXUHV
DQG

WHFKQLTXHV

PRQLWRULQJ

ZLWK

JURXQG

VSHFLDO

VSHHG

HPSKDVLV

YDULDWLRQV

RQ

GXULQJ

XQGHU

DGYHUVH

WHFKQLFDO

RU

ZHDWKHU FRQGLWLRQV

'HYHORS IOLJKW FUHZV DZDUHQHVV RI UHODWLRQVKLSV


DPRQJ

EUDNLQJ

FRHIILFLHQW

(YHQWV UHVXOWLQJ IURP LQFRUUHFW FUHZ DFWLRQ DQG


FRRUGLQDWLRQ

DSSURDFK 

LQIOLJKW PDOIXQFWLRQ DQG

DFWLRQ

UXQZD\

UXQZD\FRQGLWLRQ

&RUUHVSRQGLQJ FRPSDQ\ SUHYHQWLRQ VWUDWHJLHV DQG

IULFWLRQ

LQGH[

LQGLYLGXDO OLQHVRIGHIHQVH

DQG

FDQ

EH

GHYHORSHG

IRU

PD[LPXP UHFRPPHQGHG FURVVZLQG FRPSRQHQW

HDFK IDPLO\ WKURXJK

GHSHQGLQJ RQ UXQZD\ FRQGLWLRQ DQG

6WULFW DGKHUHQFH WR 623V

(QKDQFHG DZDUHQHVV RI HQYLURQPHQWDO IDFWRUV

(QKDQFHG

(QVXUH

IOLJKW

FUHZV

DZDUHQHVV

RI

UXQZD\

OLJKWLQJ FKDQJHV ZKHQ DSSURDFKLQJ WKH UXQZD\


HQG HJ


&HQWHUOLQH

OLJKWLQJ

VWDQGDUG

OLJKWLQJ RQO\ 
x

ZKLWH OLJKWV FKDQJLQJ WR DOWHUQDWLQJ UHG


DQG ZKLWH OLJKWV EHWZHHQ  IW DQG
 IW IURP UXQZD\ HQG DQG WR UHG
OLJKWV IRU WKH ODVW  IW DQG

5XQZD\ HGJHV OLJKWLQJ +,5/ RQO\ 


x

XQGHUVWDQGLQJ

RI

DLUFUDIW

SHUIRUPDQFH DQG KDQGOLQJ WHFKQLTXHV DQG

FHQWHUOLQH

(QKDQFHG DOHUWQHVV IRU

IOLJKWSDUDPHWHUV PRQLWRULQJ

H[FHVVLYHGHYLDWLRQ FDOORXWV DQG

PXWXDO FURVVFKHFN DQG EDFNXS

:KLWH OLJKWV FKDQJLQJ WR \HOORZ OLJKWV RQ


WKH ODVW  IW RI WKH UXQZD\

3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG 2YHUUXQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


7KH

IROORZLQJ

H[SDQGHG

VSHFLILF

LQIRUPDWLRQ

WR

%ULHILQJ

1RWHV

VXSSOHPHQW

WKH

SURYLGH
DERYH

RYHUYLHZ

  2SHUDWLQJ 3KLORVRSK\  623V

  6WDQGDUG &DOOV

  %RXQFLQJ 5HFRYHU\ 5HMHFWHG


/DQGLQJ

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  7KH )LQDO $SSURDFK 6SHHG

  )DFWRUV $IIHFWLQJ /DQGLQJ


'LVWDQFHV

  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

  2SHUDWLRQ RQ :HW RU &RQWDPLQDWHG


5XQZD\

  $ERXW :LQG ,QIRUPDWLRQ

  &URVVZLQG /DQGLQJ

3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG 2YHUUXQV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

7KH)LQDO$SSURDFK6SHHG

7KH ILQDO DSSURDFK VSHHG FRPSXWDWLRQ LV WKH UHVXOW

,QWURGXFWLRQ

RI D WDFWLFDO FKRLFH SHUIRUPHG E\ WKH IOLJKW FUHZ WR


$VVXULQJ

VDIH

ODQGLQJ

UHTXLUHV

DVVXUH WKH VDIHVW DSSURDFK DQG ODQGLQJ IRU WKH

DFKLHYLQJ

D EDODQFHG GLVWULEXWLRQ RI VDIHW\ PDUJLQV EHWZHHQ

SUHYDLOLQJ FRQGLWLRQV LQ WHUPV RI

7KH FRPSXWHG ILQDO DSSURDFK VSHHG DQG

*URVV ZHLJKW

7KH UHVXOWLQJ ODQGLQJ GLVWDQFH

:LQG FRQGLWLRQV

)ODSV

x
x

7KH GHILQLWLRQ RI WKH ILQDO DSSURDFK VSHHG

ZKHQ

VHYHUDO

IODSV

$LUFUDIW

FRQILJXUDWLRQ

VSHHG

FRUUHFWLRQV

IRU

DEQRUPDO FRQILJXUDWLRQV 
)DFWRUV DIIHFWLQJ WKH FRPSXWDWLRQ RI WKLV WDUJHW
VSHHG DQG

FRQILJXUDWLRQ

FRQILJXUDWLRQ DUH FHUWLILHG IRU ODQGLQJ 

7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ RI

5XOH

DSSOLHG

IRU

WKH

FRPELQDWLRQ

RI

VSHHG

FRUUHFWLRQV

6WDWLVWLFDO 'DWD

8VH RI $7+5 LQ 63' PRGH RU

$XWRODQG

7KH ILQDO DSSURDFK VSHHG 9

$33

WKH PLQLPXP VHOHFWDEOH VSHHG 9

LV D IDFWRU LQ DSSURDFKDQGODQGLQJ LQFLGHQWV DQG


HYHQ

,FLQJ FRQGLWLRQV

FDQ EH FRPSXWHG

EDVHG RQ WKH UHIHUHQFH WKUHVKROG VSHHG 9

7KH DVVHVVPHQW RI WKH ILQDO DSSURDFK VSHHG UDUHO\


DFFLGHQWV

LQ

UXQZD\

RYHUUXQ

HYHQWV 

/6 DV

5() RU

RQ

DYDLODEOH 

9 5() LV GHILQHG DV

EXW

DSSURDFKLQJ DW D VSHHG VLJQLILFDQWO\ IDVWHU WKDQ WKH


9

FRPSXWHG WDUJHW VSHHG RIWHQ LV FLWHG DV D FDXVDO

5()

; [ VWDOO VSHHG ZLWK IXOO ODQGLQJ IODSV

IDFWRU

9 /6 LV GHILQHG DV

'HILQLQJ WKH )LQDO $SSURDFK 6SHHG


7KH

ILQDO

DSSURDFK

VSHHG

LV

WKH

VSHHG

WR

EH

/6

; [ VWDOO VSHHG LQ DFWXDO FRQILJXUDWLRQ

 DQG PLQLPXP VWDOO VSHHG 9

PDLQWDLQHG GRZQ WR  IW RYHU WKH UXQZD\ WKUHVKROG

6 0,1

RQ FRQYHQWLRQDO DLUFUDIW PRGHOV RU


 DQG VWDOO VSHHG XQGHU J 9
RQ IO\E\ZLUH DLUFUDIW PRGHOV

7KH )LQDO $SSURDFK 6SHHG


3DJH 

6 J

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$33

7KH ILQDO DSSURDFK VSHHG 9


EDVHG RQ 9

5()

RU 9

/6

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)DFWRUV $IIHFWLQJ WKH )LQDO $SSURDFK 6SHHG

FDQ EH GHWHUPLQHG

DV IROORZV

7KH IROORZLQJ VSHHG FRUUHFWLRQV VKRXOG DUH QRW EH

9 $33 9 5()  &RUUHFWLRQV


7KH VSHHG FRUUHFWLRQV RQ 9

5()

DGGHG RQO\ WKH KLJKHVW VSHHG FRUUHFWLRQ VKRXOG EH


FRQVLGHUHG

DFFRXQW IRU

$LUFUDIW FRQILJXUDWLRQ &21) &255 

ODQGLQJ ZLWK OHVV WKDQ IXOO IODSV RU

DEQRUPDO FRQILJXUDWLRQ

LQ

WKH

:LQG FRUUHFWLRQ

6SHHG FRUUHFWLRQ IRU LFH DFFUHWLRQ

6SHHG FRUUHFWLRQ IRU WKH XVH RI WKH $7+5 LQ

6SHHG FRUUHFWLRQ IRU IRUHFDVW GRZQEXUVW  ZLQG


VKHDU FRQGLWLRQV

:,1' &255 IRU ZLQG FRPSRQHQW JXVW\

7KH )&20 DQG 45+ SURYLGH WKH UXOHV DSSOLFDEOH


IRU WKH DLUFUDIW W\SH DQG PRGHO

  NW IRU XVH RI $7+5 LQ 63' PRGH RU LI


*URVV ZHLJKW

VLJQLILFDQW LFH DFFUHWLRQ LV VXVSHFWHG


RU

%HFDXVH 9
9

9 $33 9 /6  ,QFUHPHQWV  &RUUHFWLRQV


/6

7KH VSHHG LQFUHPHQWV RQ 9

VWDWHG

FURVVZLQG RU VXVSHFWHG ZLQG VKHDU DQG

RWKHUZLVH

63' PRGH RU IRU DXWRODQG

2SHUDWLRQDO IDFWRUV

XQOHVV

DSSOLFDEOH )&20 DQG 45+ 

5() LV UHIHUHQFHG WR WKH VWDOO VSHHG


6 J  9 5() GHSHQGV RQ WKH JURVV

RU 9

ZHLJKW

DFFRXQW IRU

7KH )&20 DQG 45+ SURYLGH 9

5()

WDEOHV IRU

QRUPDO ODQGLQJV DQG RYHUZHLJKW ODQGLQJV

&RQILJXUDWLRQ FRQGLWLRQV WKDW DUH QRW LQFOXGHG LQ


WKH FRPSXWDWLRQ RI WKH 9

6 0,1

/6
:LQG FRQGLWLRQV

7KH VSHHG FRUUHFWLRQV RQ 9

/6

DFFRXQW IRU

7KH ZLQG FRUUHFWLRQ RQ WKH ILQDO DSSURDFK VSHHG

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

$$$ VHULHV

WKH VSHHG FRUUHFWLRQ IRU LFH DFFUHWLRQ LV

WKH JXVW  OLPLWHG WR  NW

  NW RU   NW GHSHQGLQJ RQ DLUFUDIW


PRGHO 

7KH UHVXOWLQJ ILQDO DSSURDFK VSHHG 9

$33

 RI WKH KHDGZLQG FRPSRQHQW H[FOXGLQJ

$$

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

)RU FODULW\ DQG FRPPRQDOLW\ DPRQJ YDULRXV $LUEXV


PRGHOV

WKH

IROORZLQJ

RYHUYLHZ

DQG

UHIHUV RQO\ WR WKH FRPSXWDWLRQ RI 9


9

5()

$33

$%% DQG $ ))&&

GLVFXVVLRQ

$ JUDSKLFDO DVVHVVPHQW EDVHG RQ WKH WRZHU


ZLQG

EDVHG RQ

 NW

7KH )LQDO $SSURDFK 6SHHG


3DJH 

YHORFLW\

DQG

ZLQG

DQJOH

OLPLWHG

WR

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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


ILQDO DSSURDFK D NW VSHHG FRUUHFWLRQ RQ 9

HQWHUHG RQ WKH DSSURSULDWH )06 SDJH

5()

VKRXOG EH DGGHG WR DFFRXQW IRU WKH DFFXUDF\ RI WKH


DXWRWKURWWOHDXWRWKUXVW

)ODSV FRQILJXUDWLRQ

:KHQ VHYHUDO IODS FRQILJXUDWLRQV DUH FHUWLILHG IRU


ODQGLQJ

WKH

UHIHUHQFH

WKUHVKROG

VSHHG

IRU

LQ

PDLQWDLQLQJ

WKH

7KLV VSHHG FRUUHFWLRQ HQVXUHV WKDW D VSHHG HTXDO WR

WKH

RU JUHDWHU WKDQ 9

VHOHFWHG FRQILJXUDWLRQ LV GHILQHG DV


9

V\VWHP

ILQDO DSSURDFK WDUJHW VSHHG

5()

/6

LV PDLQWDLQHG DW DOO

WLPHV GRZQ WR  IW RYHU WKH UXQZD\ WKUHVKROG

5() IXOO IODSV  '9 5()


&$7 ,,  &$7 ,,, DXWRODQG

,Q FDOPZLQG FRQGLWLRQV LQ OLJKWDQGYDULDEOH ZLQG


FRQGLWLRQV
9

DQG

LQ

OLJKW

WXUEXOHQFH

)RU &$7 ,, DSSURDFKHV XVLQJ WKH $7+5 LQ 63'

FRQGLWLRQV

5()   NW LV D W\SLFDO WDUJHW WKUHVKROG VSHHG

PRGH

&$7

DSSURDFKHV

,,,

DSSURDFKHV

UHJDUGOHVV

RI

WKH NW VSHHG FRUUHFWLRQ RQ 9


$EQRUPDO FRQILJXUDWLRQ

6\VWHP

PDOIXQFWLRQV

VXFK

DV

WKH

ORVV

RI

,FH DFFUHWLRQ

:KHQ

7KH VWDOO PDUJLQ HJ ORVV RU MDPPLQJ RI VODWV

UROO

LFLQJ

FRQGLWLRQV

DUH

HQFRXQWHUHG

WR DFFRXQW IRU WKH DFFUHWLRQ RI LFH RQ WKH XQKHDWHG

7KH FRQWUROODELOLW\  PDQHXYHUDELOLW\ HJ ORVV RI


RI

VHYHUH

D NW RU NW VSHHG FRUUHFWLRQ PXVW EH FRQVLGHUHG

DQGRU IODSV  RU

SDUW

UHTXLUHG E\

RQH

IODSV UHTXLUH D VSHHG FRUUHFWLRQ WR UHVWRUH

5() LV

DXWRODQG
FRQGLWLRQV 

FHUWLILFDWLRQ

K\GUDXOLF V\VWHP RU WKH MDPPLQJ RI HLWKHU VODWV RU

DQG

ZHDWKHU

VSRLOHUV

0&/

OLPLWDWLRQ

VXUIDFHV RI WKH DLUFUDIW

LI

DSSOLFDEOH 
'RZQEXUVW  :LQGVKHDU

7KH VSHHG FRUUHFWLRQV SURYLGHG LQ WKH )&20 DQG

'RZQEXUVW

45+ WDNH LQWR DFFRXQW DOO WKH FRQVHTXHQWLDO HIIHFWV


DVVRFLDWHG
LH

QR

ZLWK

WKH

FRPELQDWLRQ

SULPDU\

RI

VSHHG

PDOIXQFWLRQ
FRUUHFWLRQV

x
x

LV

UHTXLUHG XQOHVV RWKHUZLVH VWDWHG DQG H[SODLQHG 


7KH

IROORZLQJ

UXOHV

DUH

XVHG

WR

ZLQGVKHDU

FRQGLWLRQV

PD\

EH

3LORWV UHSRUWV IURP SUHFHGLQJ DLUFUDIW


$OHUWV LVVXHG E\ WKH DLUSRUW ORZ OHYHO ZLQGVKHDU
DOHUW V\VWHP //:$6  RU

FRPELQH

WKH GLIIHUHQW W\SHV RI VSHHG FRUUHFWLRQV

DQWLFLSDWHG EDVHG RQ

'DWD IURP D WHUPLQDO 'RSSOHU ZHDWKHU UDGDU


7':5 

:KHQ WZR PDOIXQFWLRQV DIIHFW WKH VWDOO PDUJLQ


ERWK VSHHG FRUUHFWLRQV DUH DGGHG

:KHQ

:KHQ WZR PDOIXQFWLRQV DIIHFW WKH FRQWUROODELOLW\ 


PDQHXYHUDELOLW\

RQO\

WKH

KLJKHU

VSHHG

RQO\

WKH

KLJKHU

UXOHV

DUH

SURYLGHG

DUH

FRUUHFWLRQ XVXDOO\ XS WR  NW WR  NW EDVHG RQ WKH

VSHHG

DQWLFLSDWHG ZLQGVKHDU LV UHFRPPHQGHG

FRUUHFWLRQ LV FRQVLGHUHG
7KHVH

FRQGLWLRQV

,I GHOD\HG ODQGLQJ RU GLYHUVLRQ LV SRVVLEOH D VSHHG

DQG WKH RWKHU RQH DIIHFWV WKH FRQWUROODELOLW\ 


WKHQ

ZLQGVKHDU

DLUSRUW

:KHQ RQH PDOIXQFWLRQ DIIHFWV WKH VWDOO PDUJLQ


PDQHXYHUDELOLW\

DLUFUDIW VKRXOG GLYHUW WR WKH GHVWLQDWLRQ DOWHUQDWH

FRUUHFWLRQ LV FRQVLGHUHG

GRZQEXUVW

DQWLFLSDWHG WKH ODQGLQJ VKRXOG EH GHOD\HG RU WKH

KHUHLQ

IRU

/DQGLQJ ZLWK OHVV WKDQ IXOO IODSV LV UHFRPPHQGHG

HQKDQFHG

WR PD[LPL]H WKH FOLPE JUDGLHQW FDSDELOLW\ WKH ILQDO

XQGHUVWDQGLQJ SXUSRVHV RQO\

DSSURDFK VSHHG VKRXOG EH DGMXVWHG DFFRUGLQJO\

7KH )LQDO $SSURDFK 6SHHG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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

:KHQ ZLQG VKHDU LV DQWLFLSDWHG WKH JURXQG VSHHG

,I WKH &21) &255 LV HTXDO WR RU JUHDWHU WKDQ


 NW QR :,1' &255 LV DSSOLHG

VKRXOG EH PRQLWRUHG FORVHO\ IRU HQKDQFHG ZLQG

VKHDU DZDUHQHVV

,I WKH &21) &255 LV ORZHU WKDQ  NW WKHQ WKH


&21)

7R HQVXUH DQ DGHTXDWH HQHUJ\ PDUJLQ D PLQLPXP

&255

:,1'

&255

LV

OLPLWHG

WR

 NW

JURXQG VSHHG VKRXOG EH PDLQWDLQHG DW DOO WLPHV


7KH
7KLV PLQLPXPJURXQGVSHHG WHFKQLTXH NQRZQ DV

7KH

$33  NW

WKH

XVH

RI

DERYH

VWUDWHJLHV

DOORZ

GLVWULEXWLQJ

DQG

EDODQFLQJ WKH VDIHW\ PDUJLQV EHWZHHQ WKH ODQGLQJ


VSHHG DQG WKH ODQGLQJ GLVWDQFH

)O\E\ZLUH DLUFUDIW PRGHOV

IRU

 NW

%\ DGMXVWLQJ PDQXDOO\ WKH WKUXVW WR PDLQWDLQ


WKH *6 QRW EHORZ 9

FRUUHFWLRQ

GLVUHJDUGHG LI WKH RWKHU VSHHG FRUUHFWLRQV H[FHHG

&RQYHQWLRQDO DLUFUDIW PRGHOV

VSHHG

FRUUHFWLRQ IRU LFH DFFUHWLRQ DV DSSOLFDEOH PD\ EH

*6 PLQL LV LPSOHPHQWHG DV IROORZV

NW

DXWRWKURWWOHDXWRWKUXVW DQG WKH NW RU NW VSHHG

1RWH 

%\ VHOHFWLQJ PDQDJHG VSHHG

6SHHG FRQILJXUDWLRQ FRUUHFWLRQV IRU DXWRODQG DUH QRW

:KHQ DQG +RZ 7R &RPELQH 6SHHG


,QFUHPHQWV DQG &RUUHFWLRQV "

GLVFXVVHG LQ WKLV %ULHILQJ 1RWH EHFDXVH LQ FDVH RI


V\VWHP

PDOIXQFWLRQ

UHTXLULQJ

&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

6WDOO PDUJLQ

7KH GDWD DQG UXOHV SURYLGHG LQ WKH )&20 DQG 45+

&RQWUROODELOLW\  PDQHXYHUDELOLW\ DQG

PDUJLQV EHWZHHQ

/DQGLQJ GLVWDQFH

7KH FRPSXWHG ILQDO DSSURDFK VSHHG DQG

7KH UHVXOWLQJ ODQGLQJ GLVWDQFH

,Q

DOORZ

FDVH

RI

V\VWHP

PDOIXQFWLRQ V

UHVXOWLQJ

FRQILJXUDWLRQ FRUUHFWLRQ &21) &255 RQ 9

LQ

5()

WKH ILQDO DSSURDFK VSHHG EHFRPHV HTXDO WR

7KH

DFKLHYLQJ

DSSOLFDEOH

EDODQFHG

)&20

DQG

GLVWULEXWLRQ

45+

RI

SURYLGH

VDIHW\

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+

7KH )LQDO $SSURDFK 6SHHG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


7KH IROORZLQJ UHODWHG %ULHILQJ 1RWHV VXSSOHPHQW WKH
DERYH GLVFXVVLRQ LQIRUPDWLRQ

  )O\LQJ 6WDELOL]HG $SSURDFKHV

 :LQG 6KHDU $ZDUHQHVV

  3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG


2YHUUXQV

  )DFWRUV $IIHFWLQJ /DQGLQJ


'LVWDQFHV

  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

5HJXODWRU\ 5HIHUHQFHV
x

)$$

$&

&DWHJRU\


,

DQG

&ULWHULD

&DWHJRU\

,,

)RU

$SSURYDO

/DQGLQJ

RI

:HDWKHU

0LPLPD IRU )$5  2SHUDWRUV

)$$

$&

&DWHJRU\

'
,,,

&ULWHULD

:HDWKHU

)RU

0LPLPD

$SSURYDO
IRU

RI

7DNHRII

/DQGLQJ DQG 5ROORXW

7KH )LQDO $SSURDFK 6SHHG


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

)DFWRUV$IIHFWLQJ/DQGLQJ'LVWDQFH

5HTXLUHG /DQGLQJ 'LVWDQFH  -$$  )$$

,QWURGXFWLRQ

5XQZD\ RYHUUXQV DUH LQYROYHG LQ   RI DSSURDFK


DQGODQGLQJ DFFLGHQWV
8QGHUVWDQGLQJ WKH IDFWRUV DIIHFWLQJ ODQGLQJ GLVWDQFH
FDQ FRQWULEXWH WR UHGXFLQJ WKH QXPEHU RI UXQZD\
RYHUUXQ HYHQWV
7KLV %ULHILQJ 1RWH LV VXSSOHPHQWHG E\ WKH %ULHILQJ
1RWHV
DQG



7KH

)LQDO

$SSURDFK

'U\ UXQZD\
:HW UXQZD\

$FWXDO /DQGLQJ

5HJXODWRU\

'LVWDQFH GU\

)DFWRU



 IW DW WKUHVKROG


,I ZHW

6SHHG

  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

'HILQLQJ WKH /DQGLQJ 'LVWDQFH

:KHQ UHIHUULQJ WR WKH ODQGLQJ GLVWDQFH


WZR GHILQLWLRQV PXVW EH FRQVLGHUHG
x 7KH DFWXDO ODQGLQJ GLVWDQFH

5HTXLUHG UXQZD\ OHQJWK GU\

$FWXDO ODQGLQJ GLVWDQFH GU\ [ 

5HTXLUHG UXQZD\ OHQJWK ZHW

$FWXDO ODQGLQJ GLVWDQFH GU\ [ 

)LJXUH 

DFKLHYHG WR ODQG

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
IRU

DQ\

LQIOLJKW

DVVHVVPHQW

RI

WKH

5HTXLUHG /DQGLQJ 'LVWDQFH  8. &$$

ODQGLQJ

GLVWDQFH

7KH

UHTXLUHG ODQGLQJ GLVWDQFH

'U\ RU
:HW UXQZD\

LV REWDLQHG E\

DSSO\LQJ D UHJXODWRU\ IDFWRU WR WKH DFWXDO ODQGLQJ


GLVWDQFH
7KH

$FWXDO ODQGLQJ

UHTXLUHG

GLVSDWFK

ODQGLQJ

SXUSRVHV

GLVWDQFH

LH

IRU

LV

XVHG

VHOHFWLQJ

5HJXODWRU\

'LVWDQFH GU\

IRU
WKH

)DFWRU



 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

)LJXUH 

DQG

UHTXLUHG

ODQGLQJ

)LJXUH 

$FWXDO ODQGLQJ GLVWDQFH GU\ [ 

LOOXVWUDWH WKH DFWXDO DQG

GLVWDQFHV

DV

GHILQHG

E\

)LJXUH 

WKH (XURSHDQ -$$  86 )$$ DQG E\ WKH 8. &$$

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH

5XQZD\ SURILOH VORSH 

7KH UXQZD\ SURILOH LH GRZQKLOO VORSH DIIHFWV WKH


ODQGLQJ GLVWDQFH ZLWKRXW DXWREUDNH
:KHQ DXWREUDNH LV XVHG WKH VHOHFWHG GHFHOHUDWLRQ
UDWH LV DFKLHYHG UHJDUGOHVV RI WKH UXQZD\ VORSH
)RU H[DPSOH D   GRZQKLOO VORSH GRZQKLOO
JUDGLHQW LQFUHDVHV WKH SXEOLVKHG ODQGLQJ GLVWDQFH
E\   IDFWRU  
+RZHYHU WKLV HIIHFW QHHGV WR EH DFFRXQWHG IRU RQO\
LI WKH UXQZD\ GRZQKLOO VORSH H[FHHGV  

7KH DFWXDO ODQGLQJ GLVWDQFH LV DIIHFWHG E\ YDULRXV


RSHUDWLRQDO

IDFWRUV

WKXV

UHGXFLQJ

WKH

UHJXODWRU\

41+

FRQGLWLRQ

PDUJLQV WKLV LQFOXGHV

$LUILHOG

HOHYDWLRQ

RU

ORZ

LH LQFUHDVHG JURXQG VSHHG 

5XQZD\ SURILOH LH GRZQKLOO VORSH 

5XQZD\

FRQGLWLRQ

FRQWDPLQDQW

LH

ZHW

QDWXUH

DQG

UXQZD\

GHSWK

RU

RI

UXQZD\

FRQWDPLQDWHG E\ VWDQGLQJ ZDWHU VOXVK VQRZ RU


LFH 

:LQG FRQGLWLRQV HJ WDLOZLQG FRPSRQHQW 

7\SH RI EUDNLQJ XVHG LH SHGDO EUDNLQJ RU

5XQZD\ FRQGLWLRQV

5XQZD\ FRQWDPLQDWLRQ LQFUHDVHV WKH UROOLQJ GUDJ


LH WKH GLVSODFHPHQW GUDJ DQG WKH DHURG\QDPLF
GUDJ LH WKH LPSLQJHPHQW GUDJ EXW DOVR
GHFUHDVHV WKH EUDNLQJ HIILFLHQF\
7KH IROORZLQJ ODQGLQJ GLVWDQFH IDFWRUV DUH W\SLFDO RQ
D FRQWDPLQDWHG UXQZD\

DXWREUDNH XVH RI WKUXVW UHYHUVHUV 

$QWLVNLG IDLOXUH

,QFUHPHQWDO DGGLWLRQ RI DOO VSHHG FRUUHFWLRQV RQ


WKH ILQDO DSSURDFK VSHHG

'HYLDWLRQ IURP WKH ILQDO DSSURDFK VSHHG

/DQGLQJ WHFKQLTXHV LH KHLJKW DQG VSHHG DW


WKUHVKROG WKUXVW UHGXFWLRQ DQG IODUH WHFKQLTXH 

'HYLDWLRQV

IURP

623V

HJ

IDLOXUH

WR

5XQZD\ &RQGLWLRQ

DUP

JURXQG VSRLOHUV 

0(/

FRQGLWLRQV

LH

WKUXVW

UHYHUVHUV

:HW
6WDQGLQJ ZDWHU RU VOXVK
&RPSDFWHG VQRZ
,FH

EUDNH

XQLW DQWLVNLG RU JURXQG VSRLOHUV LQRSHUDWLYH 


DQG

,QIOLJKW

V\VWHP

PDOIXQFWLRQV

UHVXOWLQJ

LQ

DQ

LQFUHDVHG ILQDO DSSURDFK VSHHG RU DIIHFWLQJ WKH


OLIWGXPSLQJ RU EUDNLQJ FDSDELOLW\

7KHVH

IDFWRUV

LOOXVWUDWHG LQ

DUH

)LJXUH 

GLVFXVVHG

KHUHDIWHU

)DFWRUV

DQG

 WR 
 WR 
 WR 
 WR 

7DEOH 
/DQGLQJ 'LVWDQFH )DFWRUV  &RQWDPLQDWHG 5XQZD\

$LUILHOG HOHYDWLRQ

$LUILHOG HOHYDWLRQ RU D FRUUHVSRQGLQJ ORZ 41+ YDOXH


UHVXOWV LQ D KLJKHU 7$6 DQG JURXQG VSHHG DQG WKXV
LQ D JUHDWHU ODQGLQJ GLVWDQFH
$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  

%ULHILQJ

5XQZD\

1RWH



SURYLGHV

/DQGLQJ
H[SDQGHG

RQ

&RQWDPLQDWHG

DQG

LOOXVWUDWHG

LQIRUPDWLRQ IRU RSHUDWLRQ RQ UXQZD\ FRQWDPLQDWHG


ZLWK VWDQGLQJ ZDWHU VOXVK VQRZ RU LFH

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$W JLYHQ JURVV ZHLJKW *:  DQ\ LQFUHPHQW RI RU


GHYLDWLRQ IURP 9 $33 UHVXOWV LQ D FRUUHVSRQGLQJ
LQFUHDVH RI HQHUJ\ '( VXFK WKDW

:LQG FRQGLWLRQV

,Q DFFRUGDQFH ZLWK FHUWLILFDWLRQ UHTXLUHPHQWV DQG


RSHUDWLRQDO UHJXODWLRQV WKH SXEOLVKHG ODQGLQJ
GLVWDQFH IDFWRUV DFFRXQW IRU
x   RI WKH KHDG ZLQG FRPSRQHQW DQG
x   RI WKH WDLO ZLQG FRPSRQHQW


'( LQ 

 [ ' 9$33 LQ 

7KH ODQGLQJ GLVWDQFH /' EHLQJ D GLUHFW IXQFWLRQ RI


WKH HQHUJ\ ( WKH FRUUHVSRQGLQJ LQFUHDVH LQ ODQGLQJ
GLVWDQFH '/' FDQ EH H[SUHVVHG DOVR DV

1RWH

'/' LQ 

,Q FDVH RI JXVWLQJ FURVVZLQG D WDLOZLQG FRPSRQHQW


PD\ H[LVW EXW LV QRW UHSRUWHG 7KLV FRQGLWLRQ PD\ EH

 [ ' 9$33 LQ 

XQGHWHFWHG DQG WKHUHIRUH EH QRW DFFRXQWHG IRU

,Q SLORWV WHUPV 
x D   LQFUHDVH LQ ILQDO DSSURDFK VSHHG
UHVXOWV LQ
x D   LQFUHDVH LQ ODQGLQJ GLVWDQFH

7\SH RI EUDNLQJ

$FWXDO ODQGLQJ GLVWDQFHV DUH GHPRQVWUDWHG GXULQJ


FHUWLILFDWLRQ IOLJKW WHVWV XVLQJ WKH IROORZLQJ
WHFKQLTXH
x )O\LQJ DQ RSWLPXP IOLJKW VHJPHQW IURP  IW RYHU
WKH UXQZD\ WKUHVKROG GRZQ WR WKH IODUH SRLQW
x 3HUIRUPLQJ D ILUP WRXFKGRZQ DQG
x 8VLQJ IXOO SHGDO EUDNLQJ XSRQ PDLQ ODQGLQJ JHDU
WRXFKGRZQ
7KH SXEOLVKHG DFWXDO ODQGLQJ GLVWDQFHV VHOGRP FDQ
EH DFKLHYHG LQ UHYHQXH VHUYLFH
7KH ODQGLQJ GLVWDQFHV SXEOLVKHG IRU DXWRPDWLF
ODQGLQJ ZLWK XVH RI DXWREUDNH SURYLGH PRUH
DFKLHYDEOH UHIHUHQFHV IRU OLQH RSHUDWLRQV

1RWH 
7KH

DERYH

UXOH

DVVXPHV

QRUPDO

IODUH

DQG

WRXFKGRZQ LH QRW DOORZLQJ WKH DLUFUDIW WR IORDW WR


EOHHG RII WKH H[FHVV VSHHG 

+HLJKW RYHU WKUHVKROG


&URVVLQJ WKH UXQZD\ WKUHVKROG DW  IW UHVXOWV LQ DQ
LQFUHDVH RI WKH ODQGLQJ GLVWDQFH RI W\SLFDOO\  IW
RU  P UHJDUGOHVV RI WKH UXQZD\ FRQGLWLRQ DQG
DLUFUDIW PRGHO

 IW P

6SHHG 2YHU 5XQZD\ 7KUHVKROG

7KH DFWXDO ODQGLQJ GLVWDQFH /' LV D GLUHFW


IXQFWLRQ RI WKH NLQHWLF HQHUJ\ ( WR EH DEVRUEHG
)RU DQ DLUFUDIW FURVVLQJ WKH UXQZD\ WKUHVKROG DW D
JLYHQ JURVVZHLJKW *: DQG DW WKH ILQDO DSSURDFK
VSHHG 9  WKH NLQHWLF HQHUJ\ LV

 IW DW WKUHVKROG
 IW DW WKUHVKROG

$33

( *: 9 $33 

)LJXUH 

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)ODUH WHFKQLTXH

1RWH

3HUIRUPLQJ D ORQJ IODUH LH DOORZLQJ WKH DLUFUDIW WR


IORDW WR EOHHG RII DQ H[FHVVLYH VSHHG IXUWKHU
LQFUHDVHV WKH ODQGLQJ GLVWDQFH
)RU H[DPSOH D   LQFUHDVH H[FHVV RI WKH ILQDO
DSSURDFK VSHHG LQFUHDVHV WKH ODQGLQJ GLVWDQFH E\
x

2Q

$$

VHULHV

LI

JURXQG

VSRLOHUV

GR

QRW

GHSOR\ DXWRPDWLFDOO\ WKH 3) FDQ PDQXDOO\ H[WHQG


WKH JURXQG VSRLOHUV XVLQJ WKH VSHHG EUDNHV OHYHU

'HOD\LQJ WKH GHURWDWLRQ LH WKH QRVH ODQGLQJ JHDU


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\

  LI D QRUPDO IODUH DQG WRXFKGRZQ LV


SHUIRUPHG LH GHFHOHUDWLRQ RQ WKH JURXQG 
RU
  LI D ORQJ IODUH LV SHUIRUPHG
LH GHFHOHUDWLRQ ZKLOH DLUERUQH 

7KLV DOVR GHOD\V WKH VSLQXS VLJQDO IURP WKH QRVH


ZKHHOV

WKLV

VLJQDO

LV

UHTXLUHG

IRU

WKH

RSWLPXP

RSHUDWLRQ RI WKH DQWLVNLG V\VWHP

0(/ FRQGLWLRQV

3HUIRUPLQJ D SRZHURQ WRXFKGRZQ LQ DQ DWWHPSW WR


OHVVHQ DQ H[FHVVLYH UDWHRIGHVFHQW RU WR VPRRWK
RXW WKH WRXFKGRZQ UHVXOWV LQ
x $ ORQJ IODUH DQG
x 7KH LQKLELWLRQ RI WKH DXWRPDWLF H[WHQVLRQ RI
JURXQGVSRLOHUV
7KLV LQFUHDVHV WKH ULVN RI ERXQFLQJ XSRQ WRXFKGRZQ
DQG RI D VXEVHTXHQW KDUG ODQGLQJ

:KHQ RSHUDWLQJ XQGHU WKH SURYLVLRQ RI WKH 0(/


IRU DQ LWHP DIIHFWLQJ WKH ODQGLQJ VSHHG WKH OLIW
GXPSLQJ RU WKH EUDNLQJ FDSDELOLW\ WKH DSSOLFDEOH
ODQGLQJ VSHHG FRUUHFWLRQ DQG ODQGLQJ GLVWDQFH IDFWRU
PXVW EH DFFRXQWHG IRU

6\VWHPV PDOIXQFWLRQV
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

)DLOXUH WR DUP WKH JURXQG VSRLOHUV XVXDOO\ LQ


FRQMXQFWLRQ ZLWK WKUXVW UHYHUVHUV EHLQJ LQRSHUDWLYH
LV IUHTXHQWO\ D FDXVDO IDFWRU LQ UXQZD\ RYHUUXQV
7KH JURXQG VSRLOHUV H[WHQG DXWRPDWLFDOO\ ZKHQ
UHYHUVH WKUXVW LV VHOHFWHG UHJDUGOHVV RI ZKHWKHU WKH
JURXQG VSRLOHUV DUH DUPHG RU QRW  WKLV GHVLJQ
IHDWXUH PXVW QRW EH UHOLHG XSRQ IRU H[WHQVLRQ RI
JURXQG VSRLOHUV *URXQG VSRLOHUV PXVW EH DUPHG SHU
623V
)DLOXUH WR DUP WKH JURXQG VSRLOHUV UHVXOWV LQ D W\SLFDO
ODQGLQJ GLVWDQFH IDFWRU RI   LI WKUXVW UHYHUVHUV
DUH LQRSHUDWLYH 
7KH DXWRPDWLF H[WHQVLRQ RI JURXQG VSRLOHUV VKRXOG
EH PRQLWRUHG DQG DQQRXQFHG E\ FDOOLQJ *URXQG
6SRLOHUV RU 1R 6SRLOHUV

/DQGLQJ VSHHG FRUUHFWLRQ GXH WR VODWV RU IODSV


LQRSHUDWLYH LH UHVWRULQJ WKH VWDOO PDUJLQ 

/DQGLQJ VSHHG FRUUHFWLRQ GXH WR ORVV RI UROO


VSRLOHUV LH UHVWRULQJ WKH PDQHXYHUDELOLW\ 

/DQGLQJ GLVWDQFH IDFWRU GXH WR ORVV RI JURXQG


VSRLOHUV LH ORVV RI OLIW GXPSLQJ FDSDELOLW\  DQG

/DQGLQJ GLVWDQFH IDFWRU GXH WR ORVV RI QRUPDO


EUDNLQJ V\VWHP LH UHGXFHG EUDNLQJ FDSDELOLW\ 

7KH )&20 DQG 45+ SURYLGH WKH DSSOLFDEOH ILQDO


DSSURDFK VSHHG FRUUHFWLRQV DQG ODQGLQJ GLVWDQFH
IDFWRUV

IRU

DOO

PDOIXQFWLRQV

FRQVHTXHQWLDO HIIHFWV 

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 

LQFOXGLQJ

WKHLU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&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

QHHGHG XQOHVV RWKHUZLVH VWDWHG DQG H[SODLQHG

'LVSDWFK

FRQGLWLRQV

DV

DSSOLFDEOH

GLVSDWFK

XQGHU PLQLPXP HTXLSPHQW OLVW >0(/@  GLVSDWFK


GHYLDWLRQ JXLGH >''*@ 

1HYHUWKHOHVV
FRPELQH

XQGHUVWDQGLQJ

ODQGLQJ

GLVWDQFH

WKH

UXOHV

IDFWRUV

XVHG

SURYLGHV

WR
DQ

HQKDQFHG XQGHUVWDQGLQJ RI WKH DFKLHYDEOH ODQGLQJ


GLVWDQFH

,QIOLJKW IDLOXUHV DV DSSOLFDEOH

:HDWKHU

/DQGLQJ GLVWDQFH IDFWRUV UHVXOW IURP

$ ODQGLQJ VSHHG FRUUHFWLRQ HJ EHFDXVH RI


D

IDLOXUH

DIIHFWLQJ

WKH

VWDOO

PDUJLQ

UHGXFHG

HJ

OLIWGXPSLQJ

EHFDXVH

RI

RU

IDLOXUH

EUDNLQJ

FDSDELOLW\

DIIHFWLQJ

JURXQG

VSRLOHUV DQWLVNLG RU EUDNHV 

SURYLGHV

WKH

UXOHV

XVHG

IRU

WKH

IROORZLQJ

UXOHV

$LUILHOG HOHYDWLRQ

5XQZD\ VORSH LH LI GRZQ KLOO 

5XQZD\ FRQGLWLRQ LH QDWXUH DQG GHSWK

FRPELQDWLRQ

RI

XVHG

WR

,I
DV

ODQGLQJ

VSHHG

GHVFULEHG

LQ

FRUUHFWLRQV
%ULHILQJ

FRPELQH

DUH

DGGHG

1RWH

 

WKH FRUUHVSRQGLQJ ODQGLQJ GLVWDQFH IDFWRUV DUH


PXOWLSOLHG

,I RQO\ WKH KLJKHU VSHHG FRUUHFWLRQ LV UHWDLQHG


WKHQ RQO\ WKH KLJKHU ODQGLQJ GLVWDQFH IDFWRU LV
FRQVLGHUHG RU

RI

8VH RI EUDNLQJ GHYLFHV HJ WKUXVW UHYHUVHUV

WKH GLIIHUHQW W\SHV RI ODQGLQJ GLVWDQFH IDFWRUV

:LQG FRQGLWLRQV LH ZLQG FRPSRQHQW DQG JXVW

DXWREUDNH 

DUH

FRQGLWLRQV

FRQWDPLQDQW  DQG

ODQGLQJ VSHHG FRUUHFWLRQV


7KH

LFLQJ

  7KH )LQDO $SSURDFK 6SHHG

%ULHILQJ 1RWH

HJ

VXVSHFWHG ZLQG VKHDU 

RU

PDQHXYHUDELOLW\  FRQWUROODELOLW\  RU

FRQGLWLRQV

LFH DFFUHWLRQ 

:KHQ RQH RU ERWK RI WKH WZR ODQGLQJ GLVWDQFH


IDFWRUV LV DUH UHODWHG WR OLIWGXPSLQJ RU EUDNLQJ
ERWK ODQGLQJGLVWDQFH IDFWRUV DUH PXOWLSOLHG

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

/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

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 





$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


7KH

IROORZLQJ

LQIRUPDWLRQ

%ULHILQJ

RQ

1RWHV

EUDNLQJ

SURYLGH

LVVXHV

RQ

H[SDQGHG

GU\

ZHW

RU

FRQWDPLQDWHG UXQZD\

  6WDQGDUG &DOOV

  %RXQFH 5HFRYHU\ 5HMHFWHG /DQGLQJ

  7KH )LQDO $SSURDFK 6SHHG

  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

  /DQGLQJ RQ &RQWDPLQDWHG 5XQZD\

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO


'RF  

)$5  RU  $LUSRUWV 5HTXLUHG


'DWD

)$5  6XESDUW , $LUSODQH 3HUIRUPDQFH


2SHUDWLQJ /LPLWDWLRQV

)$5  $SSOLFDELOLW\

)$5  $LUSODQHV 7XUELQH HQJLQH


SRZHUHG

/DQGLQJ

OLPLWDWLRQV

'HVWLQDWLRQ

DLUSRUWV

)$5  $LUSODQHV 7XUELQH HQJLQH


SRZHUHG

/DQGLQJ

OLPLWDWLRQV

$OWHUQDWH

DLUSRUWV

)$$ $& $ DQG % :DWHU 6OXVK DQG


6QRZ RQ WKH 5XQZD\

x
x

-$5236  /DQGLQJ 'U\ 5XQZD\V


-$5236



/DQGLQJ

:HW

DQG

&RQWDPLQDWHG 5XQZD\V

8. &$$ $,&  /DQGLQJ 3HUIRUPDQFH RI


/DUJH 7UDQVSRUW $HURSODQHV

8.

&$$

$VVRFLDWHG

$,&
ZLWK



5LVNV

2SHUDWLRQV

DQG

RQ

IDFWRUV

5XQZD\V

$IIHFWHG E\ 6QRZ 6OXVK RU :DWHU

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

2SWLPXP8VHRI%UDNLQJ'HYLFHV

%UDNLQJ 'HYLFHV 2YHUYLHZ

,QWURGXFWLRQ

7R HQVXUH DQ RSWLPXP XVH RI EUDNLQJ GHYLFHV


WKH IROORZLQJ DVSHFWV PXVW EH XQGHUVWRRG
x 'HVLJQ DQG RSHUDWLRQ RI HDFK EUDNLQJ GHYLFH
LH JURXQG VSRLOHUV EUDNHV DQG WKUXVW
UHYHUVHUV 
x 'LVWULEXWLRQ RI VWRSSLQJ IRUFHV GXULQJ ODQGLQJ
UROO
x 7\SH RI EUDNLQJ UHTXLUHG WR DFKLHYH D GHVLUHG
VWRSSLQJ GLVWDQFH
x )DFWRUV DIIHFWLQJ WKH RSWLPXP XVH RI EUDNLQJ
GHYLFHV DQG
x $SSOLFDEOH RSHUDWLRQDO JXLGHOLQHV

7KH IROORZLQJ EUDNLQJ GHYLFHV DUH XVHG WR


GHFHOHUDWH WKH DLUFUDIW DQG EULQJ LW WR D FRPSOHWH
VWRS
x *URXQG VSRLOHUV
x :KHHO EUDNHV LQFOXGLQJ DQWLVNLG DQG DXWREUDNH
V\VWHPV  DQG
x 7KUXVW UHYHUVHU V\VWHP

6WDWLVWLFDO 'DWD

*URXQG VSRLOHUV SURYLGH WZR GLVWLQFW DHURG\QDPLF


HIIHFWV DV LOOXVWUDWHG E\ )LJXUH  
x ,QFUHDVHG DHURG\QDPLF GUDJ ZKLFK FRQWULEXWHV
WR DLUFUDIW GHFHOHUDWLRQ
x /LIW GXPSLQJ ZKLFK LQFUHDVHV WKH ORDG RQ WKH
ZKHHOV DQG LQFUHDVHV WKH ZKHHOEUDNHV
HIILFLHQF\

*URXQG VSRLOHUV

*URXQG VSRLOHUV GHSOR\ DXWRPDWLFDOO\ XSRQ PDLQ


ODQGLQJ JHDU WRXFKGRZQ LI DUPHG RU XSRQ VHOHFWLRQ
RI WKH WKUXVW UHYHUVHUV

5XQZD\ H[FXUVLRQV DQG RYHUUXQV DFFRXQW IRU  


RI DOO DSSURDFKDQGODQGLQJ VHULRXV LQFLGHQWV DQG
DFFLGHQWV
6ORZHG RU GHOD\HG EUDNLQJ DFWLRQ ZDV D FDXVDO
IDFWRU LQ   RI WKHVH HYHQWV
/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

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

1HJOLJLEOH :HLJKW
RQ 0DLQ :KHHOV

7RXFKGRZQ
9

$33 9 /6

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

  :HLJKW
RQ 0DLQ :KHHOV

  :HLJKW
RQ 0DLQ :KHHOV

1RVH :KHHO 'RZQ

  'UDJ
,QFUHDVH IURP
*URXQG 6SRLOHUV

*URXQG 6SRLOHUV ([WHQGHG

)LJXUH 
0D[LPL]LQJ :HLJKWRQ:KHHOV DQG $HURG\QDPLF 'UDJ

:KHHO EUDNHV

7LUH %UDNLQJ )RUFH


$QWLVNLG DFWLYDWLRQ






)RUFH 

%UDNLQJ DFWLRQ UHVXOWV IURP WKH IULFWLRQ IRUFH


EHWZHHQ WKH WLUHV DQG WKH UXQZD\ VXUIDFH
7KLV IULFWLRQ IRUFH GHSHQGV RQ VHYHUDO SDUDPHWHUV
x $LUFUDIW VSHHG
x :KHHO VSHHG LH IUHH UROOLQJ VNLGGLQJ RU
ORFNHG ZKHHO 
x 5XQZD\ FRQGLWLRQ LH QDWXUH DQG GHSWK RI
FRQWDPLQDQW 
x 7LUH FRQGLWLRQ DQG SUHVVXUH LH IULFWLRQ
VXUIDFH 
x 7KH ORDG DSSOLHG RQ WKH ZKHHO LH WKH IULFWLRQ
IRUFH GHSHQGV RQ WKH ORDG DSSOLHG RQ WKH ZKHHO
DQG RQ WKH UXQZD\ EUDNLQJ FRHIILFLHQW 
x 7KH QXPEHU RI RSHUDWLYH EUDNHV 0(/ VWDWXV
DV DSSOLFDEOH 











)UHH UROOLQJ ZKHHO













6OLS 5DWLR 









/RFNHG ZKHHO

)LJXUH 
7LUH %UDNLQJ )RUFH YHUVXV 6OLS 5DWLR

$QWLVNLG V\VWHPV DUH GHVLJQHG WR PDLQWDLQ WKH


ZKHHO VNLGGLQJ IDFWRU DOVR FDOOHG WKH VOLS UDWLR
FORVH WR WKH SRLQW SURYLGLQJ WKH PD[LPXP IULFWLRQ
IRUFH DSSUR[LPDWHO\   RQ D VFDOH JRLQJ IURP
  IUHH UROOLQJ WR   ORFNHG ZKHHO  DV
LOOXVWUDWHG E\


:LWK DQWLVNLG RSHUDWLYH IXOO SHGDO EUDNLQJ UHVXOWV LQ


D GHFHOHUDWLRQ UDWH RI  NQRWVSHUVHFRQG WR
 NQRWVSHUVHFRQG RQ D GU\ UXQZD\

)LJXUH 

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$XWREUDNH 6\VWHP
$XWREUDNH V\VWHP LV GHVLJQHG WR SURYLGH D VHOHFWHG
GHFHOHUDWLRQ UDWH IRU HQKDQFHG SDVVHQJHU FRPIRUW
W\SLFDOO\


EHWZHHQ

NQRWVSHUVHFRQG

NQRWVSHUVHFRQG

GHSHQGLQJ

RQ

WKH

DQG

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

)LJXUH  

KLJK VSHHG

5XQZD\ FRQWDPLQDWLRQ LQFUHDVHV


7KUXVW UHYHUVHUV

,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

5ROOLQJ GUDJ LH WKH GLVSODFHPHQW GUDJ 

7KUXVW UHYHUVH HIILFLHQF\ LV KLJKHU DW KLJK VSHHG


DV

LOOXVWUDWHG

)LJXUH  

E\

WKUXVW

UHYHUVHUV

5XQZD\

WKHUHIRUH VKRXOG EH VHOHFWHG DV HDUO\ DV SRVVLEOH


DIWHU

WRXFKGRZQ

LQ

DFFRUGDQFH

ZLWK

FRQWDPLQDWLRQ

DOVR

DIIHFWV

WKH

EUDNLQJ

HIILFLHQF\

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
1HYHUWKHOHVV
PDLQWDLQHG

PD[LPXP

GRZQ

WR

5XQZD\ &RQGLWLRQ
UHYHUVH

WKUXVW

FRPSOHWH

VWRS

FDQ

EH

LQ

DQ

)DFWRUV

:HW

 WR 

6WDQGLQJ ZDWHU RU VOXVK

 WR 

&RPSDFWHG VQRZ

 WR 

,FH

 WR 

HPHUJHQF\

5HYHUVH G WKUXVW W W

7DEOH 

/DQGLQJ 'LVWDQFH )DFWRUV


:HW RU &RQWDPLQDWHG 5XQZD\

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

8QGHUVWDQGLQJ D 7\SLFDO /DQGLQJ 5ROO


)LJXUH 

7KH UHVXOWLQJ WRWDO VWRSSLQJ IRUFH UHG FXUYH LV WKH


FRPELQHG HIIHFW RI

LOOXVWUDWHV D W\SLFDO ODQGLQJ UROO DQG VKRZV

WKH FRQWULEXWLRQ RI WKH GLIIHUHQW GHFHOHUDWLRQ IRUFHV


WR

WKH

WRWDO

VWRSSLQJ

IRUFH

DV

IXQFWLRQ

RI

GHFHOHUDWLQJ DLUVSHHG LH IURP WRXFKGRZQ VSHHG


WR WD[L VSHHG 

$HURG\QDPLF GUDJ JUHHQ FXUYH 

5HYHUVH WKUXVW EOXH FXUYH  DQG

5ROOLQJ GUDJ SXUSOH FXUYH 

'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

 NQRWVSHUVHFRQG FRQVWDQW GHFHOHUDWLRQUDWH LV

VWRSSLQJ IRUFH SLQN GRWWHG OLQH 


VSRLOHUV

DV ORQJ DV WKH WRWDO VWRSSLQJ IRUFH H[FHHGV WKH


DXWREUDNH GHPDQG RU

HTXLYDOHQW DW JLYHQ JURVV ZHLJKW WR D FRQVWDQW

$W WRXFKGRZQ WKH JURXQG

XQWLO WKH DXWREUDNH WLPH GHOD\ KDV HODSVHG

$V DLUVSHHG GHFUHDVHV WKH WRWDO VWRSSLQJ IRUFH

DXWRPDWLFDOO\

H[WHQG DQG WKH WKUXVW UHYHUVHUV DUH VHOHFWHG ZLWK

GHFUHDVHV EHFDXVH RI D FRUUHVSRQGLQJ GHFUHDVH LQ

WKH PD[LPXP UHYHUVH WKUXVW

x
x

DHURG\QDPLF GUDJ DQG


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
6WRSSLQJ )RUFH

$XWREUDNH /2: 0RGH

7\SLFDOO\

$XWREUDNH 'HPDQG

KDV

HODSVHG

DW



NW

,$6

RU

ZKHQ

,$6

WKUXVWUHYHUVHU OHYHUV DUH UHWXUQHG WR WKH


UHYHUVH

%UDNLQJ DQG
5ROOLQJ 'UDJ

0D[LPXP
5HYHUVH
7KUXVW

LGOH

SRVLWLRQ

WKHQ

WR

WKH

VWRZ

SRVLWLRQ ZKHQ UHDFKLQJ WD[L VSHHG 

$V D UHVXOW WKH ZKHHOEUDNHV FRQWULEXWLRQ


SXUSOH FXUYH LQFUHDVHV LQ RUGHU WR PDLQWDLQ

5HYHUVH ,GOH



GHOD\

IOXFWXDWLRQV RFFXU ZKLFKHYHU FRPH ILUVW WKH

$HURG\QDPLF 'UDJ



WLPH

WRWDO GHFHOHUDWLRQ DQG VWRSSLQJ IRUFH

7RWDO 6WRSSLQJ )RUFH

)RUZDUG ,GOH

DXWREUDNH

WKH ZKHHO EUDNHV EHJLQ FRQWULEXWLQJ WR WKH









WKH

GHVLUHG

GHFHOHUDWLRQ

UDWH

DXWREUDNH

GHPDQG XQWLO WKH SLORW WDNHV RYHU ZLWK SHGDO


EUDNLQJ

$LUVSHHG NW

)LJXUH 

7KLV

JHQHULF

DSSOLFDEOH

6WRSSLQJ )RUFHV 'LVWULEXWLRQ

JURXQG

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 

VHTXHQFH
DQ\

VSRLOHUV

UHYHUVHUV

7\SLFDO

WR

DLUFUDIW

RI

HYHQWV

HTXLSSHG

DXWREUDNH

DQG

LV
ZLWK

WKUXVW

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

+RZ GR *URXQG 6SRLOHUV 7KUXVW 5HYHUVHUV

)LJXUH  SURYLGHV WKH IROORZLQJ LQIRUPDWLRQ

DQG %UDNHV &RQWULEXWH WR 6WRS WKH $LUFUDIW"

)LJXUH 

)RU D JLYHQ EUDNLQJ PRGH LH SHGDO EUDNLQJ RU


DXWREUDNH PRGH 

LOOXVWUDWHV WKH UHVSHFWLYH FRQWULEXWLRQV RI

WKH GLIIHUHQW EUDNLQJ GHYLFHV WR WKH WRWDO VWRSSLQJ


HQHUJ\ DV D IXQFWLRQ RI WKH DFKLHYHG RU GHVLUHG

VWRSSLQJ GLVWDQFH

$FKLHYHG VWRSSLQJ GLVWDQFH ODQGLQJ UROO 

)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\


1R %UDNLQJ

0D[LPXP SHGDO EUDNLQJ



W\SLFDOO\  WR  NWV
$XWREUDNH 0('



W\SLFDOO\  NWV


$XWREUDNH /2:

$HURG\QDPLF 'UDJ

W\SLFDOO\  NWV




0D[LPXP 5HYHUVH 7KUXVW





%UDNLQJ DQG 5ROOLQJ 'UDJ







6WRSSLQJ 'LVWDQFH P
)LJXUH 

6WRSSLQJ (QHUJ\ 'LVWULEXWLRQ YHUVXV 6WRSSLQJ 'LVWDQFH

7\SLFDO

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 



$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)DFWRUV $IIHFWLQJ 2SWLPXP %UDNLQJ

2SHUDWLRQDO *XLGHOLQHV DQG .H\ 3RLQWV

7KH IROORZLQJ IDFWRUV RIWHQ DUH LQYROYHG LQ UXQZD\

6WULFW

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

)DLOXUH

WR

DUP

JURXQG

VSRLOHUV

ZLWK

WKUXVW

DGKHUHQFH

WR

WKH

IROORZLQJ

RSHUDWLRQDO

$UP JURXQG VSRLOHUV

$UP DXWREUDNH ZLWK WKH PRVW DSSURSULDWH PRGH

UHYHUVHUV GHDFWLYDWHG HJ UHOLDQFH RQ WKUXVW


UHYHUVHU VLJQDO IRU JURXQG VSRLOHUV H[WHQVLRQ 

IRU SUHYDLOLQJ FRQGLWLRQV VKRUW UXQZD\ UXQZD\


)DLOXUH WR XVH DQ\ EUDNLQJ GHYLFHV LH XVH RI

ZLWK GRZQKLOO VORSH ORZ YLVLELOLW\ FRQWDPLQDWHG

WKH

UXQZD\ 

LQDSSURSULDWH

QRVH

KLJK

DHURG\QDPLF

EUDNLQJ WHFKQLTXH 

6HOHFW WKUXVW UHYHUVHUV DV VRRQ DV SRVVLEOH ZLWK

$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 

%UDNH XQLW LQRSHUDWLYH LH EUDNH XQLW UHSRUWHG


DV

FROG

EUDNH

IRU

VHYHUDO

IOLJKWV

ZLWKRXW

0RQLWRU DQG FDOO JURXQG VSRLOHUV H[WHQVLRQ

0RQLWRU DQG FDOO DXWREUDNH RSHUDWLRQ

%H

FRUUHVSRQGLQJ 0(/ HQWU\ 

$QWLVNLG WDFKRPHWHU PDOIXQFWLRQ

$EVHQFH RI VZLWFKLQJ RU ODWH VZLWFKLQJ IURP


1250

EUDNLQJ

WR

$/71

EUDNLQJ

RU

UHDG\

WR

WDNH

RYHU

IURP

DXWREUDNH

LI

UHTXLUHG

WR

HPHUJHQF\ EUDNLQJ LQ FDVH RI DEQRUPDO EUDNLQJ

0RQLWRU

HQJLQH

RSHUDWLRQ

LQ

UHYHUVH

WKUXVW

HJ LQFUHDVLQJ (*7 DQGRU HYLGHQFH RI VXUJH 

/DWH VHOHFWLRQ RI WKUXVW UHYHUVHUV

$EVHQFH

x
RI

WDNHRYHU

RU

ODWH

WDNHRYHU

IURP

0RQLWRU DLUVSHHG LQGLFDWLRQ DQG UHWXUQ UHYHUVH


OHYHUV

DXWREUDNH ZKHQ UHTXLUHG

WR

WKH

UHYHUVH

LGOH

SRVLWLRQ

DW

WKH

SXEOLVKHG LQGLFDWHG DLUVSHHG RU ZKHQ DLUVSHHG


IOXFWXDWLRQV RFFXU ZKLFKHYHU FRPH ILUVW

,QDGHTXDWH FURVVZLQG ODQGLQJ WHFKQLTXH DQG

,QFRUUHFW GLIIHUHQWLDO EUDNLQJ WHFKQLTXH

,I UHTXLUHG XVH PD[LPXP SHGDO EUDNLQJ DQG

'R

QRW

VWRS

EUDNLQJ

XQWLO

DVVXUHG

WKDW

WKH

DLUFUDIW ZLOO VWRS ZLWKLQ WKH UHPDLQLQJ UXQZD\


OHQJWK

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV


7KH

IROORZLQJ

%ULHILQJ

1RWHV

SURYLGH

H[SDQGHG

LQIRUPDWLRQ RQ ODQGLQJ SHUIRUPDQFH DQG WHFKQLTXHV

  )DFWRUV $IIHFWLQJ /DQGLQJ


'LVWDQFHV

  /DQGLQJ RQ :HW DQG &RQWDPLQDWHG


5XQZD\

  &URVVZLQG /DQGLQJ

5HJXODWRU\ 5HIHUHQFHV
x

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO


'RF  

)$5  RU  $LUSRUWV 5HTXLUHG


'DWD

)$5  6XESDUW , $LUSODQH 3HUIRUPDQFH


2SHUDWLQJ /LPLWDWLRQV

)$5  $SSOLFDELOLW\

)$5  $LUSODQHV 7XUELQH HQJLQH


SRZHUHG

/DQGLQJ

OLPLWDWLRQV

'HVWLQDWLRQ

DLUSRUWV

)$5  $LUSODQHV 7XUELQH HQJLQH


SRZHUHG

/DQGLQJ

OLPLWDWLRQV

$OWHUQDWH

DLUSRUWV

)$$ $& $ DQG %

-$5236  /DQGLQJ 'U\ 5XQZD\V

-$5236



/DQGLQJ

:HW

DQG

&RQWDPLQDWHG 5XQZD\V

8. &$$ $,&  /DQGLQJ 3HUIRUPDQFH RI


/DUJH 7UDQVSRUW $HURSODQHV

8.

&$$

$VVRFLDWHG

$,&
ZLWK



5LVNV

2SHUDWLRQV

DQG

RQ

IDFWRUV

5XQZD\V

$IIHFWHG E\ 6QRZ 6OXVK RU :DWHU

2SWLPXP 8VH RI %UDNLQJ 'HYLFHV


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

/DQGLQJRQ:HWRU&RQWDPLQDWHG5XQZD\
,QWURGXFWLRQ

'DPS UXQZD\

$ UXQZD\ LV FRQVLGHUHG GDPS ZKHQ WKH VXUIDFH LV


QRW GU\ EXW ZKHQ WKH PRLVWXUH RQ WKH VXUIDFH GRHV
QRW JLYH D VKLQ\ DSSHDUDQFH

)DFWRUV DVVRFLDWHG ZLWK ODQGLQJ RQ D ZHW UXQZD\ RU


RQ D UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU
VOXVK VQRZ RU LFH VKRXOG EH DVVHVVHG FDUHIXOO\
EHIRUH EHJLQQLQJ WKH DSSURDFK
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG
GLVFXVVLRQ RI RSHUDWLRQDO IDFWRUV LQYROYHG LQ
SODQQLQJ DQG FRQGXFWLQJ D ODQGLQJ RQ D ZHW RU
FRQWDPLQDWHG UXQZD\

:HW UXQZD\

$ UXQZD\ LV FRQVLGHUHG WR EH ZHW ZKHQ WKH VXUIDFH


LV FRYHUHG ZLWK ZDWHU RU HTXLYDOHQW QRW H[FHHGLQJ
 PP  RU ZKHQ WKHUH LV VXIILFLHQW PRLVWXUH RQ WKH
UXQZD\ VXUIDFH WR FDXVH LW WR DSSHDU UHIOHFWLYH
VKLQ\  EXW ZLWKRXW VLJQLILFDQW DUHDV RI VWDQGLQJ
ZDWHU

6WDWLVWLFDO 'DWD

5XQZD\ FRQGLWLRQ DORQH RU LQ FRPELQDWLRQ ZLWK


DGYHUVH FURVVZLQG LV D FLUFXPVWDQWLDO IDFWRU
LQ   RI UXQZD\ H[FXUVLRQV RU UXQZD\ RYHUUXQV DW
ODQGLQJ
5XQZD\ FRQWDPLQDWLRQ ZLWK VWDQGLQJ ZDWHU VOXVK
VQRZ RU LFH LV D FDXVDO IDFWRU LQ   RI DOO ODQGLQJ
DFFLGHQWV

&RQWDPLQDWHG UXQZD\

$ UXQZD\ LV FRQVLGHUHG WR EH FRQWDPLQDWHG ZKHQ


PRUH WKDQ   RI WKH UXQZD\ VXUIDFH ZKHWKHU LQ
LVRODWHG DUHDV RU QRW  ZLWKLQ WKH UHTXLUHG OHQJWK
DQG ZLGWK EHLQJ XVHG LV FRYHUHG E\ HLWKHU
x 6WDQGLQJ ZDWHU PRUH WKDQ  PP  LQFK
GHHS
x 6OXVK LH ZDWHU VDWXUDWHG ZLWK VQRZ RU ORRVH
VQRZ HTXLYDOHQW WR  PP  LQFK  RU PRUH 
RI ZDWHU
x 6QRZ ZKLFK KDV EHHQ FRPSUHVVHG LQWR D VROLG
PDVV ZKLFK UHVLVWV IXUWKHU FRPSUHVVLRQ DQG ZLOO
KROG WRJHWKHU RU EUHDN LQWR OXPSV LI SLFNHG XS
LH FRPSDFWHG VQRZ  RU
x ,FH LQFOXGLQJ ZHW LFH FRQWDPLQDQW UXQZD\
IULFWLRQ FRHIILFLHQW  RU EHORZ 
8QFOHDQHG UXEEHU GHSRVLWV LQ WKH WRXFKGRZQ ]RQH
UHVXOW LQ WKH UXQZD\ VXUIDFH WR EH VOLSSHU\ZKHQ
ZHW

'HILQLQJ WKH 5XQZD\ &RQGLWLRQ

7KH (XURSHDQ -$$ GHILQHV WKH UXQZD\ FRQGLWLRQ DV


IROORZV
'U\ UXQZD\

$ GU\ UXQZD\ LV RQH WKDW LV QHLWKHU ZHW QRU


FRQWDPLQDWHG
7KLV LQFOXGHV SDYHG UXQZD\V WKDW KDYH EHHQ
VSHFLDOO\ SUHSDUHG ZLWK JURRYHG RU SRURXV SDYHPHQW
DQG PDLQWDLQHG WR UHWDLQ DQ
EUDNLQJ
DFWLRQ HYHQ ZKHQ PRLVWXUH LV SUHVHQW


HIIHFWLYHO\ GU\

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)DFWRUV DQG (IIHFWV

+\GURSODQLQJ UHVXOWV LQ D SDUWLDO RU WRWDO UHGXFWLRQ RI

%UDNLQJ DFWLRQ

LQ D FRUUHVSRQGLQJ ORVV RI IULFWLRQ FRHIILFLHQW

7KH SUHVHQFH RI

FRQWDFW VXUIDFH EHWZHHQ WKH WLUH DQG WKH UXQZD\ DQG

0DLQZKHHOV

IOXLG FRQWDPLQDQW LH VWDQGLQJ

DQG

QRVHZKHHOV

HTXDOO\

FDQ

EH

ZDWHU VOXVK RU ORRVH VQRZ RU KDUG FRQWDPLQDQW

DIIHFWHG E\ K\GURSODQLQJ WKXV DIIHFWLQJ WKH EUDNLQJ

LH

SHUIRUPDQFH DQG WKH HIIHFWLYHQHVV RI WKH QRVH

FRPSDFWHG

VQRZ

RU

LFH

RQ

WKH

UXQZD\

ZKHHOVWHHULQJ

DGYHUVHO\ DIIHFWV WKH EUDNLQJ SHUIRUPDQFH VWRSSLQJ


IRUFH E\

+\GURSODQLQJ DOZD\V RFFXUV LQ VRPH GHJUHH ZKHQ


5HGXFLQJ WKH IULFWLRQ IRUFH EHWZHHQ WKH WLUHV DQG

RSHUDWLQJ RQ D IOXLGFRQWDPLQDWHG UXQZD\

WKH UXQZD\ VXUIDFH


7KH

7KH UHGXFWLRQ RI IULFWLRQ IRUFH GHSHQGV RQ WKH


IROORZLQJ IDFWRUV

WLUH

WUHDG

FRQGLWLRQ

ZHDU

DQG

LQIODWLRQ

W\SH RI UXQZD\ VXUIDFH DQG

DQWLVNLG V\VWHP SHUIRUPDQFH

WKH UXQZD\ VXUIDFH WKXV UHGXFLQJ WKH FRQWDFW


DQG

LH

FRPSOHWH

FUHDWLQJ
ORVV

ULVN

RI

VHYHUH

K\GURSODQLQJ

GLUHFWO\

$EVHQFH

RI

UXQZD\

VXUIDFH

URXJKQHVV

DQG

7KLFNQHVV

DQG

QDWXUH

HJ

ZDWHU

RU

VOXVK

RI WKH IOXLG FRQWDPLQDQW OD\HU

&UHDWLQJ D IOXLG OD\HU EHWZHHQ WKH WLUHV DQG


DUHD

IRU

GUDLQDJH HJ WUDQVYHUVH VDZFXW JURRYHV 

SUHVVXUH

SRWHQWLDO

GHSHQGV RQ WKH IROORZLQJ IDFWRUV

RI

K\GURSODQLQJ

FRQWDFW

DQG

7LUH LQIODWLRQ SUHVVXUH

*URXQG VSHHG DQG

$QWLVNLG RSHUDWLRQ HJ ORFNHGZKHHO FDVH 

IULFWLRQ
$ PLQLPXP K\GURSODQLQJ VSHHG FDQ EH GHILQHG IRU

EHWZHHQ WKH WLUHV DQG WKH UXQZD\ VXUIDFH 

HDFK DLUFUDIW W\SH DQG UXQZD\ FRQWDPLQDQW


)OXLG FRQWDPLQDQWV VXFK DV VWDQGLQJ ZDWHU VOXVK
RU ORRVH VQRZ DOVR SRVLWLYHO\ FRQWULEXWH

WR

+\GURSODQLQJ PD\ RFFXU DW WRXFKGRZQ SUHYHQWLQJ

WKH

WKH ZKHHOV IURP VSLQQLQJ DQG IURP VHQGLQJ WKH

VWRSSLQJ IRUFH DW ODQGLQJ E\

ZKHHOURWDWLRQVLJQDO WR YDULRXV DLUFUDIW V\VWHPV

5HVLVWLQJ WR WKH ZKHHOV IRUZDUG PRYHPHQW WKXV


FDXVLQJ D GLVSODFHPHQW GUDJ

3HUIRUPLQJ

ILUP

WRXFKGRZQ

FDQ

SUHYHQW

K\GURSODQLQJ DW WRXFKGRZQ DQG HQVXUH URWDWLRQ RI


&UHDWLQJ D VSUD\ SDWWHUQ WKDW VWULNHV WKH ODQGLQJ
JHDUV

DQG

DLUIUDPH

WKXV

FDXVLQJ

PDLQODQGLQJJHDU ZKHHOV

DQ

LPSLQJHPHQW GUDJ
&HUWLILFDWLRQ

UHJXODWLRQV

'LUHFWLRQDO FRQWURO
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
GRZQ WR WD[L VSHHG 

7KH EUDNLQJ DFWLRQ LV WKH QHW HIIHFW RI WKH DERYH


VWRSSLQJ IRUFHV DV LOOXVWUDWHG E\

)LJXUH  

)LJXUH 

DQG
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


ZKHHOV

+\GURSODQLQJ DTXDSODQLQJ 

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

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

%ULHILQJ

1RWH

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

8QGHUVWDQGLQJ 6WRSSLQJ )RUFHV GXULQJ


/DQGLQJ 5ROO

  &URVVZLQG /DQGLQJ SURYLGHV

H[SDQGHG LQIRUPDWLRQ RQ GLUHFWLRQDO FRQWURO XQGHU


FURVVZLQG FRQGLWLRQV

)LJXUH  VKRZV WKH GLVWULEXWLRQ RI WKH UHVSHFWLYH


VWRSSLQJ IRUFHV DV D IXQFWLRQ RI WKH GHFUHDVLQJ
DLUVSHHG GXULQJ D W\SLFDO ODQGLQJ UROO XVLQJ
DXWREUDNH LQ /2: PRGH DQG PD[LPXP UHYHUVH
WKUXVW VHH DOVR %ULHILQJ 1RWH   2SWLPXP 8VH

$VVHVVLQJ /DQGLQJ 'LVWDQFH

/DQGLQJ GLVWDQFHV DUH SURYLGHG LQ WKH )&20 DQG


45+ IRU D GU\ UXQZD\ DQG IRU WKH IROORZLQJ UXQZD\
FRQGLWLRQV DQG FRQWDPLQDQWV
x :HW
x  PP  LQFK VWDQGLQJ ZDWHU
x  PP  LQFK VWDQGLQJ ZDWHU
x  PP  LQFK VOXVK
x  PP  LQFK VOXVK
x &RPSDFWHG VQRZ DQG
x ,FH
$FWXDO ODQGLQJ GLVWDQFHV DUH SURYLGHG IRU DOO UXQZD\
FRQGLWLRQV DQG DVVXPH
x $Q HYHQ GLVWULEXWLRQ RI WKH FRQWDPLQDQW
x 7KH XVH RI IXOO SHGDO EUDNLQJ EHJLQQLQJ DW
WRXFKGRZQ DQG
x $Q RSHUDWLYH DQWLVNLG V\VWHP
$XWRODQG ODQGLQJ GLVWDQFHV XVLQJ DXWREUDNH DUH
SXEOLVKHG IRU DOO UXQZD\ FRQGLWLRQV
,Q DGGLWLRQ FRUUHFWLRQ IDFWRUV LQ  DUH SURYLGHG WR
DFFRXQW IRU WKH IROORZLQJ HIIHFWV
x $LUSRUW HOHYDWLRQ
 7\SLFDOO\    SHU  IW
x :LQG FRPSRQHQW
 7\SLFDOO\    SHU  NW WDLOZLQG FRPSRQHQW
 7\SLFDOO\   SHU  NW KHDGZLQG
FRPSRQHQW DQG
x 7KUXVW UHYHUVHUV HIIHFW
 7KUXVW UHYHUVHU HIIHFW GHSHQGV RQ UXQZD\
FRQGLWLRQ DQG W\SH RI EUDNLQJ DV LOOXVWUDWHG
E\ )LJXUH 

RI %UDNLQJ 'HYLFHV 

7KH WRWDO VWRSSLQJ IRUFH LV WKH FRPELQHG HIIHFW RI

$HURG\QDPLF GUDJ LQFOXGLQJ WKH LPSLQJHPHQW


GUDJ JUHHQ FXUYH 
1RWH 
7KH WHUP DHURG\QDPLF GUDJ UHIHUV WR WKH GUDJ RI
WKH DLUSODQH GXULQJ WKH UROORXW LQFOXGLQJ WKH
LPSLQJHPHQW

GUDJ

RQ

IOXLG

FRQWDPLQDWHG

UXQZD\  QRW WR WKH LQDSSURSULDWH WHFKQLTXH RI


NHHSLQJ WKH QRVH KLJK WR VXSSRVHGO\ LQFUHDVH
WKH RYHUDOO DHURG\QDPLF VWRSSLQJ IRUFH

5HYHUVH WKUXVW EOXH FXUYH  DQG

%UDNLQJ

DQG

UROOLQJ

GUDJ

LQFOXGLQJ

WKH

GLVSODFHPHQW GUDJ UHG FXUYH 

7\SLFDO 'HFHOHUDWLQJ )RUFHV GXULQJ /DQGLQJ 5ROO


6WRSSLQJ
)RUFH

$XWREUDNH /2: 0RGH

7RWDO 6WRSSLQJ )RUFH

$HURG\QDPLF 'UDJ

$XWREUDNH 'HPDQG
%UDNLQJ DQG
5ROOLQJ 'UDJ

0D[LPXP
5HYHUVH
7KUXVW







$LUVSHHG NW

)LJXUH 

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 







$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

6WRSSLQJ (QHUJ\ 'LVWULEXWLRQ


&RQWDPLQDWHG 5XQZD\
)LJXUH 

RQ

7KH FRQWULEXWLRQ RI WKH GLIIHUHQW EUDNLQJ GHYLFHV WR


WKH WRWDO VWRSSLQJ HQHUJ\ RQ D UXQZD\ FRQWDPLQDWHG
ZLWK LQFK RI VWDQGLQJ ZDWHU FDQ EH FRPSDUHG WR
WKHLU UHVSHFWLYH FRQWULEXWLRQV RQ D GU\ UXQZD\ DV

LOOXVWUDWHV WKH FRQWULEXWLRQ WR WKH WRWDO

VWRSSLQJ HQHUJ\ RI WKH GLIIHUHQW EUDNLQJ GHYLFHV DV

LOOXVWUDWHG LQ %ULHILQJ 1RWH

%UDNLQJ 'HYLFHV

IXQFWLRQ

RI

WKH

GHVLUHG

RU

DFKLHYHG

VWRSSLQJ

)LJXUH 

 2SWLPXP 8VH RI

GLVWDQFH RQ D UXQZD\ FRQWDPLQDWHG ZLWK LQFK RI

ZDWHU

FRQWULEXWLRQ

RI

WKH

DHURG\QDPLF

GUDJ

LQFUHDVHV GXH WR WKH DGGLWLRQDO LPSLQJHPHQW

)LJXUH  SURYLGHV
x

7KH
GUDJ

7KH VWRSSLQJ GLVWDQFH ODQGLQJ UROO DFKLHYHG

IRU D JLYHQ W\SH RI EUDNLQJ LH SHGDO EUDNLQJ RU

7KH FRQWULEXWLRQ RI WKH EUDNLQJ DQG UROOLQJ GUDJ


LH

VHOHFWHG DXWREUDNH PRGH 

QHW

HIIHFW

RI

EUDNLQJ

IRUFH

DQG

GLVSODFHPHQW GUDJ GHFUHDVHV

RU

7KH

QHFHVVDU\

EUDNLQJ

RU

W\SH

VHOHFWHG

RI

EUDNLQJ

DXWREUDNH

LH

PRGH

SHGDO
IRU

7KH FRQWULEXWLRQ RI WKH WKUXVW UHYHUVHU VWRSSLQJ


IRUFH LV LQGHSHQGHQW IURP WKH UXQZD\ FRQGLWLRQ

GHVLUHG RU UHTXLUHG VWRSSLQJ GLVWDQFH

*LYHQ $LUFUDIW  0D[LPXP /DQGLQJ :HLJKW  9


6HD /HYHO  ,6$

 RI 6WRSSLQJ (QHUJ\

$33 %RWK 5HYHUVHUV

,QFK :DWHU

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 

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 



$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

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
DHURG\QDPLF GUDJ UROOLQJ GUDJ DQG UHYHUVH
WKUXVW DQG EHFDXVH
x 7KH VHOHFWHG DXWREUDNH GHFHOHUDWLRQ UDWH
HJ ZKHQ XVLQJ D PHGLXP DXWREUDNH PRGH
FDQQRW EH DFKLHYHG WKH OLJKW LQGLFDWLQJ WKDW WKH
VHOHFWHG GHFHOHUDWLRQ UDWH LV DFKLHYHG GRHV QRW
LOOXPLQDWH

)DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFH


5XQZD\ FRQGLWLRQ DQG W\SH RI EUDNLQJ

LOOXVWUDWHV WKH HIIHFW RI UXQZD\ FRQGLWLRQ RQ


ODQGLQJ GLVWDQFH IRU YDULRXV DSSOLFDEOH UXQZD\
FRQGLWLRQV DQG IRU WKUHH EUDNLQJ PRGHV
)LJXUH 

(IIHFW RI %UDNLQJ DQG 5XQZD\ &RQGLWLRQ






7KUXVW UHYHUVHU

LOOXVWUDWHV WKH HIIHFW RI UHYHUVH WKUXVW


LH UHGXFWLRQ RI ODQGLQJ GLVWDQFH LQ  ZLWK ERWK
UHYHUVHUV RSHUDWLYH
:KHQ DXWREUDNH LV XVHG WKH WKUXVW UHYHUVHU HIIHFW
LH FRQWULEXWLRQ WR WKH ODQGLQJ GLVWDQFH UHGXFWLRQ
GHSHQGV RQ
x 7KH VHOHFWHG GHFHOHUDWLRQ UDWH DQG WKH WLPH
GHOD\ IRU DXWREUDNH DFWLYDWLRQ DV DSSOLFDEOH
DQG
x 5XQZD\
FRQGLWLRQ LH FRQWULEXWLRQ RI
FRQWDPLQDQW WR WKH GHFHOHUDWLRQ UDWH 



)LJXUH



0DQXDO /DQGLQJ
3HGDO %UDNLQJ
$XWRODQG
$XWREUDNH 0HGLXP
$XWRODQG
$XWREUDNH /RZ
H

)LJXUH 
7\SLFDO

(IIHFW RI 7KUXVW 5HYHUVHU

5XQZD\ &RQGLWLRQ

)LJXUH 

RZ







0DQXDO /DQGLQJ
3HGDO %UDNLQJ



$XWRODQG
$XWREUDNH 0HGLXP



$XWRODQG
$XWREUDNH /RZ


)LJXUH 
7\SLFDO

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 

HG

VQ

/DQGLQJ 'LVWDQFH 5HGXFWLRQ 

)LJXUH 

&

RP
SD

FW

XV
VO
LQ



,F
H

K
LQ

VO

DW
Z
LQ



HW
:

U\
'

XV

HU

HU

LV EDVHG RQ D UHIHUHQFH P ODQGLQJ


GLVWDQFH W\SLFDO ODQGLQJ GLVWDQFH IRU D PDQXDO
ODQGLQJ RQ GU\ UXQZD\ ZLWK IXOO SHGDO EUDNLQJ DQG QR
UHYHUVH 
)RU HDFK UXQZD\ FRQGLWLRQ WKH IROORZLQJ ODQGLQJ
GLVWDQFHV FDQ EH FRPSDUHG
x /DQGLQJ GLVWDQFH IRU PDQXDO ODQGLQJ ZLWK
IXOO SHGDO EUDNLQJ RU
x /DQGLQJ GLVWDQFH IRU DXWRODQG ZLWK ORZ RU
PHGLXP DXWREUDNH
)RU PDQXDO ODQGLQJ ZLWK IXOO SHGDO EUDNLQJ RU IRU
DXWRODQG ZLWK DXWREUDNH WKH HIIHFW RI UXQZD\
FRQGLWLRQ FDQ EH DVVHVVHG
:KHQ DXWREUDNH LV XVHG WKH EUDNLQJ FRQWULEXWLRQ
GHSHQGV RQ WKH VHOHFWHG GHFHOHUDWLRQ UDWH DQG RQ
WKH DQWLVNLG DFWLYDWLRQ SRLQW ZKLFKHYHU LV DFKLHYHG
ILUVW DV LOOXVWUDWHG E\
DQG

)LJXUH 




5XQZD\ FRQGLWLRQ

&

FW



LQ

VQ

,F

Z
R

VK
VOX

VK
VOX
LQ




LQ





LQ

WH

WH

W
H
:

'

U\

DW





LQ






/DQGLQJ GLVWDQFH P



$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

2Q GU\ RU ZHW UXQZD\ WKH HIIHFW RI WKUXVW UHYHUVHU


RQ

ODQGLQJ

GLVWDQFH

GHSHQGV

RQ

WKH

VHOHFWHG

DXWREUDNH PRGH LH VHOHFWHG GHFHOHUDWLRQ UDWH


ZLWKRXW

WLPH

GHOD\

YHUVXV

ORZ

DQG

)LJXUH 

ILUP
DQG

WRXFKGRZQ
HQVXUH

WR

URWDWLRQ

SUHYHQW
RI

PDLQ

ODQGLQJ JHDU ZKHHOV 

DXWREUDNH

PRGH ZLWK WLPH GHOD\  DV LOOXVWUDWHG E\

3HUIRUPLQJ
K\GURSODQLQJ

DQG DVVRFLDWHG WLPHGHOD\ HJ PHGLXP DXWREUDNH


PRGH

$LPLQJ IRU WKH WRXFKGRZQ ]RQH

)LJXUH 

8VLQJ

PD[LPXP

SRVVLEOH

DIWHU

UHYHUVH

WKUXVW

WRXFKGRZQ

DV

VRRQ

EHFDXVH

DV

WKUXVW

UHYHUVHU HIILFLHQF\ LV KLJKHU DW KLJK VSHHG 

2SHUDWLRQDO *XLGHOLQHV

2SWLPXP

8VH

RI

%UDNLQJ

RQ

ZHW

UXQZD\

RU

RQ

7KH IROORZLQJ RSHUDWLRQDO UHFRPPHQGDWLRQV QHHG WR

DLUSRUW

ZLWK

EHWWHU

LQFUHDVH WKH EUDNLQJ HIILFLHQF\ DQG

UXQZD\

FRQGLWLRQV DQGRU OHVV FURVVZLQG FRPSRQHQW


FRQGLWLRQV

RU

LQ

FDVH

RI

V\VWHP

PDOIXQFWLRQ

$QWLFLSDWLQJ

$YRLGLQJ

DV\PPHWU\

HIIHFWV

WKDW

ZRXOG

FURVVZLQG

ODQGLQJ

RQ

FRQWDPLQDWHG

RU

DSSO\LQJ

ZKHQ

WDNLQJ

EUDNHV

RYHU

QRUPDOO\

IURP

ZLWK

PHGLXP

RU

EUDNLQJ

LV

QHFHVVDU\

DSSO\LQJ

$IWHU UHDFKLQJ WD[L VSHHG XVLQJ QRVHZKHHO


VWHHULQJ ZLWK FDUH

$VVRFLDWHG %ULHILQJ 1RWHV

FRQGLWLRQV
ZLWK

GLIIHUHQWLDO

VLGH DQG

0LQLPXP (TXLSPHQW /LVW 0(/ RU 'LVSDWFK

DXWREUDNH

,I

FRPSOHWHO\ WKH SHGDO DFWLRQ RQ WKH RSSRVLWH

'HYLDWLRQ *XLGH ''*  IRU NQRZQ GLVSDWFK

7KH

ORZ

IROORZLQJ

LQIRUPDWLRQ

VHWWLQJ LI WKH FRQWDPLQDQW LV HYHQO\ GLVWULEXWHG 

IRU

%ULHILQJ
D

1RWHV

FRPSOHWH

SURYLGH

RYHUYLHZ

H[SDQGHG
RI

IDFWRUV

LQYROYHG ZKHQ ODQGLQJ RQ D FRQWDPLQDWHG UXQZD\

2Q FRQWDPLQDWHG UXQZD\ XVH RI PHGLXP VHWWLQJ


XVXDOO\ LV UHFRPPHQGHG WR DVVXUH LPPHGLDWH
EUDNLQJ DFWLRQ DIWHU WRXFKGRZQ LH ZLWKRXW WLPH
GHOD\ 

UHTXLUHG

SHGDO EUDNLQJ RQ WKH UHTXLUHG VLGH DQG UHOHDVLQJ

)&20 DQG 45+ IRU LQIOLJKW PDOIXQFWLRQV

6HOHFWLQJ

QRVH

DQWLVNLG

8VLQJ UXGGHU SHGDOV DQG GLIIHUHQWLDO EUDNLQJ DV

UXQZD\

RU

ZLWK

HJ

WKH QRVHZKHHOVWHHULQJ WLOOHU 

GXPSLQJ FDSDELOLW\ UHIHUULQJ WR WKH DSSOLFDEOH

DVVRFLDWHG

VZLWFKHV

UHTXLUHG IRU GLUHFWLRQDO FRQWURO LH QRW XVLQJ

)RU LQRSHUDWLYH LWHPV DIIHFWLQJ WKH EUDNLQJ RU OLIW

$V

VLQJOHWKUXVWUHYHUVHU

ZLWKRXW DQWLVNLG RU ZLWK D VLQJOH WKUXVW UHYHUVHU

JHDU

VWHDG\ SUHVVXUH

RSHUDWLRQ 

V\VWHPV

ODQGLQJ

DXWREUDNH

SUHYHQW HIILFLHQW EUDNLQJ RU GLUHFWLRQDO FRQWURO


HJ

DFWLYDWH

UHIHUHQFH VSHHG 

ZKHQ DFWXDO FRQGLWLRQV VLJQLILFDQWO\ GLIIHU IURP


IRUHFDVW

RQ

LQFUHDVH WKH ZHLJKWRQZKHHOV DQG WKXV

EH HPSKDVL]HG
DQ

DXWREUDNH

/RZHULQJ WKH QRVH ODQGLQJ JHDU ZLWKRXW XQGXH


GHOD\ WR

WR

RI

DFKLHYHG PD\ QRW LOOXPLQDWH 

UXQZD\

LFH

'LYHUVLRQ

RSHUDWLRQ

LQGLFDWLQJ WKDW WKH VHOHFWHG GHFHOHUDWLRQ UDWH LV

FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU VOXVK VQRZ RU

WKH

UDWH PD\ QRW EH DFKLHYHG WKHUHIRUH WKH OLJKW

'HYLFHV IRU

RSHUDWLRQ RQ GU\ UXQZD\ DUH IXOO\ DSSOLFDEOH ZKHQ


RSHUDWLQJ

0RQLWRULQJ

FRQWDPLQDWHG UXQZD\ WKH VHOHFWHG GHFHOHUDWLRQ

7KH RSHUDWLRQDO JXLGHOLQHV SURYLGH LQ %ULHILQJ 1RWH



&RQILUP WKH H[WHQVLRQ RI JURXQG VSRLOHUV

  )O\LQJ 6WDELOL]HG $SSURDFKHV

  )DFWRUV $IIHFWLQJ /DQGLQJ


'LVWDQFHV

$SSURDFKLQJ RQ JOLGH SDWK DQG DW WKH WDUJHW ILQDO


DSSURDFK VSHHG

  2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

  &URVVZLQG /DQGLQJ

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

5HJXODWRU\ UHIHUHQFHV
x

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO


'RF  

)$5  RU  $LUSRUWV 5HTXLUHG


'DWD

)$5  6XESDUW , $LUSODQH 3HUIRUPDQFH


2SHUDWLQJ /LPLWDWLRQV

)$5  $SSOLFDELOLW\

)$5  $LUSODQHV 7XUELQH HQJLQH


SRZHUHG

/DQGLQJ

OLPLWDWLRQV

'HVWLQDWLRQ

DLUSRUWV

)$5  $LUSODQHV 7XUELQH HQJLQH


SRZHUHG

/DQGLQJ

OLPLWDWLRQV

$OWHUQDWH

DLUSRUWV

)$$ $& $ :DWHU 6OXVK DQG 6QRZ RQ


WKH 5XQZD\

-$5236  /DQGLQJ 'U\ 5XQZD\V

-$5236



/DQGLQJ

:HW

DQG

&RQWDPLQDWHG 5XQZD\V

8. &$$ $,&  /DQGLQJ 3HUIRUPDQFH RI


/DUJH 7UDQVSRUW $HURSODQHV

8.

&$$

$VVRFLDWHG

$,&
ZLWK



5LVNV

2SHUDWLRQV

DQG

RQ

IDFWRUV

5XQZD\V

$IIHFWHG E\ 6QRZ 6OXVK RU :DWHU

/DQGLQJ RQ :HW RU &RQWDPLQDWHG 5XQZD\


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH

:KDWV<RXU&XUUHQW:LQG"

,QWURGXFWLRQ

'HILQLQJ $YHUDJH:LQG DQG *XVW

6HYHUDO VRXUFHV RI ZLQG LQIRUPDWLRQ DUH DYDLODEOH WR


WKH IOLJKW FUHZ
x $7& LH 0(7$5 $7,6 DQG WRZHU ZLQGV  DQG
x $LUFUDIW V\VWHPV LH ,56 DQG )06 ZLQGV 
(DFK ZLQG LQIRUPDWLRQ PXVW EH XQGHUVWRRG IRU
DSSURSULDWH XVH GXULQJ YDULRXV IOLJKW SKDVHV

:LQG GLUHFWLRQ DQG YHORFLW\ DUH VDPSOHG HYHU\


VHFRQG
7KH ZLQG SURILOH LV DYHUDJHG RYHU WKH ODVW
PLQXWH SHULRG WR SURYLGH WKH $7,6 RU WRZHU
UHSRUWHG DYHUDJHZLQG
7KH DYHUDJH ZLQG LV DYDLODEOH WR WKH FRQWUROOHU RQ
D GLVSOD\ WHUPLQDO VRPH FRQWURO WRZHUV KRZHYHU
FDQ DOVR SURYLGH LQVWDQWDQHRXV LQGLFDWLRQV RI ZLQG
GLUHFWLRQ DQG YHORFLW\ 
7KH ZLQG SURILOH LV DOVR REVHUYHG RYHU WKH ODVW
PLQXWH SHULRG WKH PD[LPXP SHDN ZLQG YDOXH
UHFRUGHG GXULQJ WKLV SHULRG GHILQHV WKH JXVW YDOXH
,&$2 FRQVLGHUV WKDW WKH ZLQG LV JXVW\ RQO\ LI WKH
PLQXWH SHDN YDOXH H[FHHGV WKH PLQXWH
DYHUDJHZLQG E\  NW RU PRUH KRZHYHU JXVW YDOXHV
ORZHU WKDQ  NW RIWHQ DUH SURYLGHG E\ DLUSRUW
ZHDWKHU VHUYLFHV
)LJXUH  VKRZV D PLQXWH ZLQG SURILOH IHDWXULQJ
x $ PLQXWH DYHUDJH ZLQG RI NW DQG
x $ PLQXWH JXVW RI  NW LH D  NW SHDN ZLQG
YHORFLW\ GXULQJ WKH PLQXWH SHULRG 

6WDWLVWLFDO 'DWD

$GYHUVH ZLQG FRQGLWLRQV LH WDLO ZLQG FRPSRQHQW


KLJK FURVVZLQG FRPSRQHQW ZLQG JXVWLQHVV RU ORZ
OHYHO ZLQG VKHDU DUH LQYROYHG LQ PRUH WKDQ  
RI ODQGLQJ LQFLGHQWV DQG DFFLGHQWV
%HFDXVH ZLQG VHQVRUV RIWHQ DUH GLVWDQW IURP
WKH WRXFKGRZQ ]RQH ZLQG FRQGLWLRQV DW WRXFKGRZQ
IUHTXHQWO\ GLIIHU IURP FRQGLWLRQV UHSRUWHG E\ $7&
,&$2 6WDQGDUGV

5HFRPPHQGDWLRQV IRU PHDVXULQJ DQG UHSRUWLQJ


ZLQG LQIRUPDWLRQ DUH GHILQHG E\ WKH ,QWHUQDWLRQDO
&LYLO $YLDWLRQ 2UJDQL]DWLRQ ,&$2 DQG
x 5HOD\HG
WR WKH :RUOG 0HWHRURORJLFDO
2UJDQL]DWLRQ :02 
x ,PSOHPHQWHG E\ WKH PHPEHU VWDWHV 1DWLRQDO
:HDWKHU 6HUYLFHV 1:6 
x 7KURXJK WKH ORFDO $LUSRUW :HDWKHU 6HUYLFHV
$:6 

1RWH
7KH $7,6 DQG WRZHU ZLQGV DUH UHIHUHQFHG WR WKH
PDJQHWLF QRUWK XQOHVV DOO

DLUSRUW

GLUHFWLRQV

DUH

UHIHUHQFHG WR WKH WUXH QRUWK IRU H[DPSOH LQ UHJLRQV


ZLWK ODUJH PDJQHWLF YDULDWLRQ 

:KDWV <RXU &XUUHQW :LQG "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

:LQG NW

$YHUDJHZLQG

*XVW



JXVW

YDOXHV

GLVSOD\HG

WR

WKH

7KH PLQXWH DYHUDJHZLQG DQG WKH PLQXWH JXVW



$YHUDJH
:LQG

DQG

FRQWUROOHU DUH UHIUHVKHG HYHU\ PLQXWH

DUH XVHG E\ $7& IRU



$7,6 PHVVDJHV



: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\

0LQXWHV

)LJXUH 

;;; LV WKH ZLQG GLUHFWLRQ UHIHUHQFHG

WR WKH WUXH QRUWK 

:LQG  NW *XVWLQJ  NW
:LQG NW

)LJXUH 



,I WKH ZLQG SHDN YDOXH LV REVHUYHG GXULQJ WKH ODVW


PLQXWH

SHULRG

WKH

JXVW

EHFRPHV

DYHUDJH ZLQG DV LOOXVWUDWHG E\

*XVW



SDUW

)LJXUH 

RI

$YHUDJH
:LQG

WKH




:LQG NW




$YHUDJH
:LQG 



0LQXWHV



0(7$5  :LQG ;;;*.7



)LJXUH 






0LQXWHV

0D[LPXP 'HPRQVWUDWHG &URVVZLQG


7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG SXEOLVKHG
LQ

:LQG  NW *XVWLQJ  NW

WKH

3HUIRUPDQFH

$LUSODQH

)OLJKW

VHFWLRQ

0DQXDO

RI

WKH

DSSURYHG

LV

WKH

PD[LPXP

$)0 

FURVVZLQG FRPSRQHQW WKDW KDV EHHQ HQFRXQWHUHG

)LJXUH 

DQG GRFXPHQWHG GXULQJ FHUWLILFDWLRQ IOLJKW WHVWV RU


VXEVHTXHQWO\
7KH

 RU QR UHIHUHQFH WR JXVW LI WKH NW JXVW LV QRW

ZLQG

EUDFNHWLQJ

DFFRXQWHG IRU

YDOXH
WKH

LV

UHFRUGHG

WRXFKGRZQ

WLPH

GXULQJ

W\SLFDOO\

SHULRG
IURP

 IW DERYH DLUILHOG HOHYDWLRQ GRZQ WR WD[L VSHHG 

:KDWV <RXU &XUUHQW :LQG "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

)DFWRUV $IIHFWLQJ &URVVZLQG &DSDELOLW\

)RU VRPH DLUFUDIW PRGHOV LI D VLJQLILFDQW JXVW FRXOG


EH UHFRUGHG GXULQJ WKLV SHULRG D GHPRQVWUDWHG JXVW

7KH IROORZLQJ IDFWRUV UXQZD\ FRQGLWLRQV RU


FRQILJXUDWLRQV DIIHFW WKH FURVVZLQG FDSDELOLW\
x 5XQZD\ FRQGLWLRQ LH QDWXUH DQG GHSWK RI
FRQWDPLQDQW 
x 6\VWHPV PDOIXQFWLRQV HJ UXGGHU MDP  RU
x 0(/ FRQGLWLRQV HJ QRVH ZKHHO VWHHULQJ
LQRSHUDWLYH 

YDOXH LV DOVR SXEOLVKHG LQ WKH $)0 DQG )&20

7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG

,V QRW DQ RSHUDWLQJ OLPLWDWLRQ

'RHV

QRW

QHFHVVDULO\

UHIOHFW

WKH

DLUFUDIW

PD[LPXP FURVVZLQG FDSDELOLW\ DQG

*HQHUDOO\ DSSOLHV WR D VWHDG\ ZLQG


1HYHUWKHOHVV D VXUYH\ FRQGXFWHG E\ $LUEXV
,QGXVWULH LQGLFDWHV WKDW  RI RSHUDWRUV FRQVLGHU
WKH PD[LPXP GHPRQVWUDWHG FURVVZLQG DV
D OLPLWDWLRQ
:KHQ QR GHPRQVWUDWHG JXVW YDOXH LV DYDLODEOH
x  RI RSHUDWRUV FRQVLGHU WKDW RQO\ WKH $7,6
DQG WRZHU DYHUDJHZLQG PXVW EH ORZHU WKDQ WKH
PD[LPXP GHPRQVWUDWHG FURVVZLQG DQG
x  RI RSHUDWRUV FRQVLGHU WKDW WKH $7,6 DQG
WRZHU JXVW PXVW EH ORZHU WKDQ WKH PD[LPXP
GHPRQVWUDWHG FURVVZLQG
7KH PDMRULW\ RI RSHUDWRUV KDYH SXEOLVKHG DQG
LPSOHPHQWHG UHGXFHG FURVVZLQG OLPLWV IRU RSHUDWLRQ
RQ FRQWDPLQDWHG UXQZD\
7KH FURVVZLQG OLPLWV SXEOLVKHG E\ RSHUDWRUV IRU GU\
RU ZHW UXQZD\ DQG IRU UXQZD\ FRQWDPLQDWHG ZLWK
VWDQGLQJ ZDWHU VOXVK VQRZ RU LFH RIWHQ DUH ORZHU
E\ W\SLFDOO\  NW WKDQ WKH GHPRQVWUDWHG YDOXHV RU
UHFRPPHQGHG YDOXHV SXEOLVKHG E\ $LUEXV ,QGXVWULH
x

:LQG ,QIRUPDWLRQ RQ 1DYLJDWLRQ 'LVSOD\

:LQG LQIRUPDWLRQ RQ WKH QDYLJDWLRQ GLVSOD\ 1'


FRQVLVWV RI WZR HOHPHQWV DV VKRZQ RQ )LJXUH 
x $ ZLQG DUURZ
 7KH GLUHFWLRQ RI WKH ZLQG DUURZ LV UHIHUHQFHG
WR WKH PDJQHWLF QRUWK EHFDXVH WKH PDJQHWLF
QRUWK LV WKH UHIHUHQFH IRU WKH 1' PDS DQG
UHIOHFWV WKH ZLQG GLUHFWLRQ
 7KH OHQJWK RI WKH ZLQG DUURZ LV IL[HG LH WKH
OHQJWK GRHV QRW YDU\ ZLWK YDU\LQJ ZLQG
YHORFLW\ 
7KH ZLQG DUURZ LV WKH SULPDU\ ZLQG YLVXDOFXH
GXULQJ WKH ILQDO DSSURDFK WRJHWKHU ZLWK WKH
JURXQG VSHHG >*6@ GLVSOD\ 
x

0D[LPXP &RPSXWHG &URVVZLQG

7KH PD[LPXP FRPSXWHG FURVVZLQG UHIOHFWV WKH


FRPSXWHG GHVLJQ FDSDELOLW\ RI WKH DLUFUDIW LQ WHUPV
RI
x 5XGGHU DXWKRULW\
x 5ROO FRQWURO DXWKRULW\ DQG
x :KHHOFRUQHULQJ FDSDELOLW\

$ GLJLWDO ZLQG LQIRUPDWLRQ WKDW SURYLGH WKH ZLQG


GLUHFWLRQ UHIHUHQFHG WR WKH WUXH QRUWK DQG ZLQG
YHORFLW\
7KH GLJLWDO ZLQG LQIRUPDWLRQ LV SULPDULO\ XVHG WR
FRPSDUH WKH FXUUHQW ZLQG WR WKH SUHGLFWHG ZLQG
SURYLGHG RQ WKH FRPSXWHUL]HG IOLJKW SODQ

'HSHQGLQJ RQ DLUFUDIW PRGHOV DQG VWDQGDUGV WKH


ZLQG LQIRUPDWLRQ PD\ EH FRPSXWHG HLWKHU E\ WKH
LQHUWLDO UHIHUHQFH V\VWHP ,56 RU E\ WKH IOLJKW
PDQDJHPHQW V\VWHP )06 
'HSHQGLQJ RQ WKH ZLQG VRXUFH GLIIHUHQW WLPH GHOD\V
DUH DSSOLHG IRU VPRRWKLQJ LH DYHUDJLQJ WKH ZLQG
YDOXH

:KDWV <RXU &XUUHQW :LQG "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

7KH

ZLQG

LQIRUPDWLRQ

RQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

WKH

1'

LV

7KH ,56 ZLQG LV FRPSXWHG DQG WUDQVPLWWHG WR WKH

UHIUHVKHG

DLUFUDIW HOHFWURQLF IOLJKW LQVWUXPHQW V\VWHP (),6 IRU

W\SLFDOO\  WLPHV SHU VHFRQG

GLVSOD\

RQ

WKH

QDYLJDWLRQ

GLVSOD\

1'

W\SLFDOO\

 WLPHV SHU VHFRQG


7KH ,56 ZLQG GLVSOD\ LV WKHUHIRUH D QHDUUHDOWLPH
*6
7$6







&'1











ZLQG LQIRUPDWLRQ

 10

)06 :LQG









7KH )06 ZLQG LV FRPSXWHG VLPLODUO\ WR WKH ,56 ZLQG

$0%

EXW ZLWK WKH IROORZLQJ GLIIHUHQFHV



7KH DFFXUDF\ RI WKH JURXQG VSHHG UHFHLYHG


IURP

WKH

,56

LV

LQFUHDVHG

E\

LQFOXGLQJ

FRUUHFWLRQ EDVHG RQ WKH '0('0( SRVLWLRQ RU


*36 SRVLWLRQ ZKHQ DYDLODEOH DQG

&'1



7KH )06 ZLQG LV DYHUDJHG RYHU D VHFRQG


SHULRG

%HFDXVH RI WKLV VHFRQG VPRRWKLQJ WKH )06


ZLQG LV OHVV DFFXUDWH XQGHU WKH IROORZLQJ FRQGLWLRQV



)LJXUH 
7\SLFDO GLVSOD\

6KLIWLQJ ZLQG

6LGHVOLS RU

&OLPELQJ RU GHVFHQGLQJ WXUQ

7KH

)06

ZLQG

FDQQRW

EH

FRQVLGHUHG

DV

DQ LQVWDQWDQHRXV ZLQG EXW QHYHUWKHOHVV WKH )06


ZLQG LV

,56 :LQG

WRZHU DYHUDJH ZLQG DQG

7KH ,56 ZLQG LV DVVHVVHG JHRPHWULFDOO\ XVLQJ WKH


WULDQJOH

FRQVLVWLQJ

RI

WKH

WUXH

DLU

VSHHG

$ PRUH UHFHQW ZLQG LQIRUPDWLRQ WKDQ WKH $7,6 RU

7$6

7KH ZLQG SUHYDLOLQJ DORQJ WKH DLUFUDIW IOLJKW SDWK


DIW RI WKH DLUFUDIW 

YHFWRU JURXQG VSHHG *6 YHFWRU DQG ZLQG YHFWRU


7KH 7$6 YHFWRU DQG *6 YHFWRU DUH GHILQHG E\ WKHLU
YHORFLW\ DQG GLUHFWLRQ DV IROORZV

6XPPDU\ RI .H\ 3RLQWV

7KH 0(7$5 ZLQG LV D PLQXWHDYHUDJH ZLQG

7$6 YHFWRU

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

GXULQJ WKH ODVW PLQXWH SHULRG

*6 YHFWRU




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

D PLQXWH WLPH SHULRG

:KDWV <RXU &XUUHQW :LQG "


3DJH 

E\

PRUH

WKDQ

NW

RYHU

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

,I DQ LQVWDQWDQHRXV ZLQG UHDGLQJ LV GHVLUHG DQG


UHTXHVWHG

IURP

WKH

$7&

WKH

SKUDVHRORJ\

LQVWDQWZLQG 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

$VVRFLDWHG %ULHILQJ 1RWHV


7KH

IROORZLQJ

LQIRUPDWLRQ

%ULHILQJ

IRU

1RWHV

SURYLGH

FRPSOHWH

H[SDQGHG

DZDUHQHVV

RI

ZLQGUHODWHG IDFWRUV

  /DQGLQJ RQ :HW RU &RQWDPLQDWHG


5XQZD\

  &URVVZLQG /DQGLQJ

5HJXODWRU\ 5HIHUHQFHV
x

,&$2  $QQH[  0HWHRURORJLFDO 6HUYLFH IRU


,QWHUQDWLRQDO $LU QDYLJDWLRQ &KDSWHU 

,&$2  $QQH[  $LU 7UDIILF 6HUYLFHV

:RUOG

0HWHRURORJLFDO

*XLGH

WR

2UJDQL]DWLRQ

0HWHRURORJLFDO

:02

,QVWUXPHQWV

DQG

0HWKRGV RI 2EVHUYDWLRQ :02 1R  

:KDWV <RXU &XUUHQW :LQG "


3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$SSURDFKDQG/DQGLQJ%ULHILQJ1RWH
&URVVZLQG/DQGLQJV

2Q D UXQZD\ FRQWDPLQDWHG ZLWK VWDQGLQJ ZDWHU


VOXVK VQRZ RU LFH D PD[LPXP UHFRPPHQGHG
FURVVZLQG LV GHILQHG 7DEOH   GHSHQGLQJ RQ
x 5HSRUWHG EUDNLQJ DFWLRQ LI DYDLODEOH  RU
x 5HSRUWHG
UXQZD\ IULFWLRQ FRHIILFLHQW
LI DYDLODEOH  RU
x (TXLYDOHQW UXQZD\ FRQGLWLRQ LI EUDNLQJ DFWLRQ
DQG UXQZD\ IULFWLRQ FRHIILFLHQW DUH QRW DYDLODEOH 

,QWURGXFWLRQ

2SHUDWLRQV LQ FURVVZLQG FRQGLWLRQV UHTXLUH VWULFW


DGKHUHQFH WR DSSOLFDEOH FURVVZLQG OLPLWDWLRQV RU
PD[LPXP UHFRPPHQGHG FURVVZLQG YDOXHV
RSHUDWLRQDO UHFRPPHQGDWLRQV DQG KDQGOLQJ
WHFKQLTXHV SDUWLFXODUO\ ZKHQ RSHUDWLQJ RQ ZHW RU
FRQWDPLQDWHG UXQZD\V
7KLV %ULHILQJ 1RWH SURYLGHV DQ RYHUYLHZ DQG
GLVFXVVLRQ RI RSHUDWLRQDO IDFWRUV LQYROYHG LQ
SODQQLQJ DQG FRQGXFWLQJ WKH DSSURDFK DQG IODUH
XQGHU FURVVZLQG FRQGLWLRQV SDUWLFXODUO\ RQ D
FRQWDPLQDWHG UXQZD\
%ULHILQJ 1RWH
SURYLGHV H[SDQGHG
LQIRUPDWLRQ RQ RSHUDWLRQV RQ ZHW RU FRQWDPLQDWHG
UXQZD\V


&RQWDPLQDWHG

/DQGLQJ

RQ

:HW

RU

5HSRUWHG

5HSRUWHG

(TXLYDOHQW

0D[LPXP

%UDNLQJ

5XQZD\

5XQZD\

5HFRPPHQGHG

&RQGLWLRQ

&URVVZLQG

1RWH 

 NW

 WR 

1RWH 

 NW

 WR 

1RWH  DQG

 NW

$FWLRQ

)ULFWLRQ

,QGH[

&RHIILFLHQW

*RRG

 DQG

5XQZD\

6WDWLVWLFDO 'DWD

*RRG 

$GYHUVH ZLQG FRQGLWLRQV LH VWURQJ FURVVZLQGV


WDLO ZLQGV DQG ZLQG VKHDU DUH LQYROYHG LQ   RI
DSSURDFKDQGODQGLQJ DFFLGHQWV
&URVVZLQG LQ DVVRFLDWLRQ ZLWK UXQZD\ FRQGLWLRQ LV D
FLUFXPVWDQWLDO IDFWRU LQ QHDUO\   RI UXQZD\
H[FXUVLRQ HYHQWV
  RI FURVVZLQG LQFLGHQWV DQG DFFLGHQWV RFFXU
DW ODQGLQJ
5XQZD\ &RQGLWLRQ DQG
5HFRPPHQGHG &URVVZLQG

0HGLXP


0HGLXP

:KDWV

0HGLXP 

 WR 

1RWH  DQG

 NW

1RWH 

3RRU


3RRU

0D[LPXP

8QUHOLDEOH

\RXU

1RWH 

7KH PD[LPXP GHPRQVWUDWHG FURVVZLQG DQG


PD[LPXP FRPSXWHG FURVVZLQG GLVFXVVHG LQ
%ULHILQJ 1RWH
DUH DSSOLFDEOH RQO\ RQ GU\ GDPS RU ZHW
UXQZD\


DERYH

&XUUHQW

 DQG

1RWH  DQG

EHORZ

1RWH 

8QUHOLDEOH

1RWH  DQG

 NW

 NW

1RWH 

7DEOH 

:LQG "

0D[LPXP 5HFRPPHQGHG &URVVZLQG  7\SLFDO

&URVVZLQG /DQGLQJV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

7KH

(TXLYDOHQW

5XQZD\

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&RQGLWLRQ

GHILQHG

)LQDO $SSURDFK 7HFKQLTXH

E\

1RWH  WKURXJK 1RWH  FDQ EH XVHG RQO\ IRU WKH


GHWHUPLQDWLRQ

RI

WKH

PD[LPXP

)LJXUH

UHFRPPHQGHG

FURVVZLQG
7KLV (TXLYDOHQW 5XQZD\ &RQGLWLRQ
IRU

WKH

VKRZV

WKDW

GHSHQGLQJ

RQ

WKH

UHFRPPHQGDWLRQV SXEOLVKHG LQ WKH DLUFUDIWRSHUDWLQJ

FRPSXWDWLRQ

RI

FDQQRW

WDNHRII

DQG

PDQXDO
EH XVHG
ODQGLQJ

SHUIRUPDQFH EHFDXVH LW GRHV QRW DFFRXQW IRU WKH

:HW RU &RQWDPLQDWHG 5XQZD\

ILQDO

DSSURDFK

XQGHU

FURVVZLQG

:LWK ZLQJVOHYHO LH DSSO\LQJ D GULIW FRUUHFWLRQ


LQ RUGHU WR WUDFN WKH UXQZD\ FHQWHUOLQH WKLV W\SH

HIIHFWV RI WKH GLVSODFHPHQW GUDJ DQG LPSLQJHPHQW


GUDJ DV GHILQHG LQ %ULHILQJ 1RWH

WKH

FRQGLWLRQV PD\ EH FRQGXFWHG 

RI DSSURDFK LV FDOOHG D FUDEEHG DSSURDFK  RU

 /DQGLQJ RQ

:LWK D VWHDG\ VLGHVOLS LH ZLWK WKH DLUFUDIW


IXVHODJH

DOLJQHG

ZLWK

WKH

UXQZD\

FHQWHUOLQH

XVLQJ D FRPELQDWLRQ RI LQWRZLQG DLOHURQ DQG

1RWH  

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

&UDEEHG $SSURDFK

UDWKHU WKDQ IOLJKW WHVWV EXW WKH FDOFXODWHG YDOXHV DUH


DGMXVWHG

LQ

FRQVHUYDWLYH

PDQQHU

EDVHG

6LGHVOLS $SSURDFK

RQ

RSHUDWLRQDO H[SHULHQFH
6RPH

RSHUDWRUV

FRQVLGHU

UHGXFHG

)LJXUH 

PD[LPXP

&UDEEHG $SSURDFK YHUVXV 6LGHVOLS $SSURDFK

FURVVZLQG YDOXHV ZKHQ WKH ILUVW RIILFHU LV 3) GXULQJ


OLQH WUDLQLQJ DQG LQLWLDO OLQH RSHUDWLRQ
7KH PD[LPXP FURVVZLQG IRU SHUIRUPLQJ DQ DXWRODQG

7KLV

LV D FHUWLILHG OLPLWDWLRQ

FUDEEHG

%ULHILQJ

1RWH

DSSURDFK

IRFXV

RQ

WHFKQLTXH

WKH

ZLQJVOHYHO

UHFRPPHQGHG


E\

$LUEXV ,QGXVWULH WR GLVFXVV WKH DVVRFLDWHG IODUH DQG


$VVLJQPHQW E\ $7& RI D JLYHQ

ODQGLQJ

UXQZD\

GHFUDE

VKRXOG EH TXHVWLRQHG E\ WKH 3) LI SUHYDLOLQJ UXQZD\


FRQGLWLRQV

DQG

FURVVZLQG

FRPSRQHQW

WHFKQLTXHV

FRPSRQHQW

DUH

FRQVLGHUHG LQDGHTXDWH IRU D VDIH ODQGLQJ

&URVVZLQG /DQGLQJV
3DJH 

GHSHQGLQJ

RQ

WKH

FURVVZLQG

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$LUIUDPH
IDFWRUV

PDQXIDFWXUHUV

ZKHQ

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

FRQVLGHU

UHFRPPHQGLQJ

WKH

IROORZLQJ

ZLQJVOHYHO

RU

VWHDG\VLGHVOLS DSSURDFK 

%DQN DQJOH DW D JLYHQ FUDE DQJOH RU FUDE DQJOH


DW D JLYHQ EDQN DQJOH

DQJOH UHODWLRQVKLS UHTXLUHG WR FRUUHFW WKH GULIW

$LUFUDIW JHRPHWU\ LH SLWFK DWWLWXGH DQG EDQN

DQG WUDFN WKH UXQZD\ FHQWHUOLQH DW WKH ILQDO

DQJOH OLPLWV IRU SUHYHQWLQJ WDLO VWULNH HQJLQH

DSSURDFK VSHHG 9

QDFHOOH FRQWDFW RU ZLQJWLS FRQWDFW 

7KH JUDSK SURYLGHV WKH EDQN DQJOH  FUDE

$33

LQ D VWHDG\VLGH

VOLS FRQGLWLRQ
3RVLWLYH

$LOHURQV UROO DQG UXGGHU \DZ DXWKRULW\ DQG

FUDE

DQJOHV

UHIOHFW

QRUPDO

GULIW

FRUUHFWLRQV DQG VLGHVOLS FRQGLWLRQV LH ZLWK

WKH DLUFUDIW SRLQWLQJ LQWR ZLQG 

&URVVZLQG FRPSRQHQW

)ODUH 7HFKQLTXH

1HJDWLYH

FUDE

H[FHVVLYH

UXGGHU

SRLQWLQJ

DZD\

DQJOHV

UHVXOW

FRUUHFWLRQ

IURP

ZLQG

IURP

LH

DQ

DLUFUDIW

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\

623V 

$LUFUDIW JHRPHWU\ OLPLWDWLRQ 

DWWLWXGH

$OLJQ WKH DLUFUDIW ZLWK WKH UXQZD\ FHQWHUOLQH

SDUWLDO

FRQWUROV

WHFKQLTXH

GHFUDE
WR

XVLQJ

FRQWLQXH

WKH

FURVV

WUDFNLQJ

DQJOH

WKDW

FDQ

EH

WKH ZLQJWLS DV DSSOLFDEOH 

FRQWUROV 
D

EDQN

VFUDSSLQJ WKH HQJLQH QDFHOOH WKH IODSV RU

LQWRZLQG DLOHURQ DQG RSSRVLWH UXGGHU FURVV

3HUIRUP

DQGRU

DFKLHYHG ZLWKRXW LQFXUULQJ D WDLO VWULNH RU

ZKLOH SUHYHQWLQJ GULIWLQJ VLGHZD\V E\ DSSO\LQJ

7KLV OLPLWDWLRQ UHIOHFWV WKH PD[LPXP SLWFK

$LOHURQV  UXGGHU DXWKRULW\ 

WKH

7KLV OLPLWDWLRQ UHIOHFWV WKH DLUFUDIW PD[LPXP


FDSDELOLW\ WR PDLQWDLQ D VWHDG\VLGHVOLS XQGHU

UXQZD\ FHQWHUOLQH RU

FURVVZLQG FRQGLWLRQV

0DLQWDLQ WKH FUDE DQJOH IRU GULIW FRUUHFWLRQ XQWLO

)LJXUH  DQG )LJXUH  DVVXPH WKDW WKH DSSURDFK LV

PDLQODQGLQJJHDU WRXFKGRZQ

VWDELOL]HG DQG WKDW WKH IODUH LV SHUIRUPHG DW D QRUPDO

8QGHUVWDQGLQJ
/LPLWDWLRQV
7KH

IROORZLQJ

&URVVZLQG

GLVFXVVLRQ

KHLJKW DQG ZLWK D QRUPDO SLWFK UDWH

/DQGLQJ

7KHVH ILJXUHV PD\ QRW EH DYDLODEOH DQG SXEOLVKHG


IRU DOO DLUFUDIW W\SHV DQG PRGHOV EXW DOO DLUFUDIW DUH
RI

IOLJKW

G\QDPLFV

VXEMHFW WR WKH VDPH EDVLF ODZV RI IOLJKW G\QDPLFV

FDQ

WKDW WKHVH ILJXUHV UHIOHFW

SURYLGH DQ LQFUHDVHG XQGHUVWDQGLQJ RI WKH YDULRXV


FURVVZLQG ODQGLQJ WHFKQLTXHV LH ILQDO DSSURDFK

*HRPHWU\ OLPLWV XVXDOO\ DUH QRW D FRQFHUQ LQ KLJK

IODUH DQG DOLJQ SKDVHV 

FURVVZLQGV

&URVVZLQG ODQGLQJ FDSDELOLW\ 'HVLJQ IDFWRUV


)LJXUHV 

DQG

)LJXUH 

UHDFKHG

DV

EHIRUH

WKH

UROO

DQ\

DQG

UXGGHU

DXWKRULW\

DLUFUDIWWRJURXQG

LV

FRQWDFW

RFFXUV

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 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

&UDE $QJOH YHUVXV %DQN $QJOH


7\SLFDO  0D[LPXP /DQGLQJ :HLJKW  /DQGLQJ &RQILJXUDWLRQ   NW &URVVZLQG






3LWFK $WWLWXGH /LPLW

%
;

&UDE $QJOH 'HJUHH




5ROO  5XGGHU /LPLW


 'HJUHH %DQN$QJOH

 'HJUHH

$;

 'HJUHH



 'HJUHH



 'HJUHH



 'HJUHH



 'HJUHH












$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 





$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

)LJXUH 

VKRZV WKDW ZLWK D

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

 NW

2SHUDWLRQDO UHFRPPHQGDWLRQV DQG KDQGOLQJ


WHFKQLTXHV

VWHDG\ FURVVZLQG

FRPSRQHQW

$FKLHYLQJ D VWHDG\ VLGHVOLS ODQGLQJ LH ZLWK


]HUR

FUDE

DQJOH

UHTXLUHV

RQO\

LQWRZLQJ EDQN DQJOH SRLQW

)LJXUH  DQG )LJXUH  VKRZV WKDW

GHJUHH

SORWWHG RQ WKH

JUDSK  RU

:LWK ORZ FURVVZLQG W\SLFDOO\ XS WR  NW WR  NW


FURVVZLQG
ODQGLQJ

$FKLHYLQJ D ZLQJV OHYHO WRXFKGRZQ LH ZLWK QR

% 

$ VWHDG\VLGHVOLS ODQGLQJ FDQ EH SHUIRUPHG VDIHO\

 NW

]HUR FUDE DQJOH UHTXLUHV QHDUO\ D GHJUHH LQWR


ZLQG EDQN DQJOH SODFLQJ WKH DLUFUDIW FORVHU WR LWV

:LQJVOHYHO

JHDU GDPDJH SRLQW

% 

VLGHVOLS DQG FUDEDQJOH LH PRYLQJ IURP SRLQW

SULRU

WR

:LWK KLJKHU FURVVZLQG W\SLFDOO\ DERYH  NW WR

D FUDEEHGDSSURDFK DQG

D SDUWLDO GHFUDE SULRU WR WRXFKGRZQ XVLQJ

$ WR

 GHJUHHV RI EDQN DQJOH

PRGHOV

OLPLWHG

E\

WKHLU

FRPSDQ\ 623V 

JHRPHWU\

FKDUDFWHULVWLFV LQFUHDVLQJ WKH ILQDO DSSURDFK VSHHG


LH E\ DSSO\LQJ D ZLQG FRUUHFWLRQ RQ WKH ILQDO
DSSURDFK VSHHG HYHQ XQGHU IXOO FURVVZLQG WKXV

WR SRLQW

'

 GHJUHHV RI EDQN DQJOH

EXW DOVR RQ WKH IROORZLQJ IDFWRUV RU DV VSHFLILHG E\

W\SLFDOO\

GHSHQG XSRQ WKH SUHYDLOLQJ FURVVZLQG FRPSRQHQW

WKH ULVN RI ODQGLQJ JHDU GDPDJH  7KLV UHTXLUHV

 GHJUHHV RI FUDE DQJOH DQG

 GHJUHHV RI FUDE DQJOH DQG

ZLWK SDUWLDO GHFUDE RU ZLWK FRPSOHWH GHFUDE VKRXOG

JHRPHWU\ DQG UROO  UXGGHU OLPLWV ZKLOH HOLPLQDWLQJ

7KH GHFLVLRQ WR SHUIRUP WKH IODUH ZLWK QR GHFUDE

UHVWRUHV VLJQLILFDQW PDUJLQV UHODWLYH WR

PRYLQJ IURP SRLQW

GHFUDE

GRZQ ZLWK

:LWK  NW FURVVZLQG DGRSWLQJ D FRPELQDWLRQ RI

DLUFUDIW

QR

2Q PRVW $LUEXV PRGHOV WKLV UHTXLUHV WRXFKLQJ

DW WRXFKGRZQ SRWHQWLDOO\ UHVXOWLQJ LQ ODQGLQJ

2Q

ZLWK

DFKLHYHG E\ DSSO\LQJ FURVVFRQWUROV 

GHFUDE ZRXOG UHVXOW LQ D GHJUHH FUDE DQJOH

&

EH

D FRPELQDWLRQ RI EDQN DQJOH DQG FUDE DQJOH

$FKLHYLQJ D ZLQJVOHYHO WRXFKGRZQ LH ZLWK QR

SRLQW

FDQ

$ VWHDG\VLGHVOLS LH QR FUDE DQJOH  RU

$ RQ WKH

JUDSK  RU

FURVVZLQG

ODQGLQJ UHTXLUHV

$FKLHYLQJ D VWHDG\VLGHVOLS ODQGLQJ LH ZLWK

JHRPHWU\ DQG UROO U XGGHU OLPLWV SRLQW

VDIH

 NW FURVVZLQG FRPSRQHQW  D VDIH FURVVZLQG

VWHDG\ FURVVZLQG

FRPSRQHQW

WRXFKGRZQ

WRXFKGRZQ

JHRPHWU\ RU UROO  UXGGHU OLPLWV 


VKRZV WKDW ZLWK D

DQG

LH ZKLOH UHWDLQLQJ VLJQLILFDQW PDUJLQV UHODWLYH WR

)LJXUH 

IODUH

SHUIRUPHG ZLWK HLWKHU

GHFUDE RQO\ UHTXLUHV D GHJUHH WR GHJUHH


FUDE DQJOH DW WRXFKGRZQ SRLQW

FRPSRQHQW

LH

:LQG JXVWLQHVV

5XQZD\ OHQJWK

5XQZD\ VXUIDFH FRQGLWLRQ

7\SH RI DLUFUDIW DQG

3LORW H[SHULHQFH RQ W\SH

LQFUHDVHV WKH

PDUJLQ ZLWK UHVSHFW WR WKH JHRPHWU\ OLPLWDWLRQ

&URVVZLQG /DQGLQJV
3DJH 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

7RXFKGRZQ )ULFWLRQ )RUFHV

)LJXUH  LOOXVWUDWHV WKHVH IULFWLRQ IRUFHV

$VVXPLQJ D FUDEEHGDSSURDFK ZLWK QR GHFUDE RU


ZLWK SDUWLDO GHFUDE GXULQJ IODUH XSRQ WRXFKGRZQ WKH

$LUFUDIW PRWLRQ

IOLJKW VKRXOG EH RQ WKH XSZLQG VLGH RI WKH UXQZD\


FHQWHUOLQH
ODQGLQJ

WR

HQVXUH

JHDUV

DUH

WKDW

RQ

WKH

OHIW

WKHLU

DQG

ULJKW

UHVSHFWLYH

PDLQ

VLGHV

RI

WKH UXQZD\ FHQWHUOLQH

8SRQ

WRXFKGRZQ

RI

WKH

PDLQ

ODQGLQJ

JHDU

&URVVZLQG

WKH

WUDQVLWLRQV
IURP
WKH
ODZV RI IOLJKW
G\QDPLFV WR WKH ODZV RI JURXQG G\QDPLFV 

7LUH
FRUQHULQJ IRUFH

DLUFUDIW

7KH IROORZLQJ DUH DPRQJ WKH HYHQWV WKDW RFFXU XSRQ


WRXFKGRZQ

:KHHO

URWDWLRQ

XQOHVV

K\GURSODQLQJ

LV

7LUH
EUDNLQJ IRUFH

H[SHULHQFHG

:KHHO URWDWLRQ LV WKH WULJJHU IRU

$XWRPDWLF JURXQG VSRLOHUV H[WHQVLRQ

$XWREUDNH RSHUDWLRQ DQG

$QWLVNLG RSHUDWLRQ

)LJXUH 
: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\

%XLOGXS
WLUHV

RI

DQG

IULFWLRQ
WKH

IRUFHV

UXQZD\

EHWZHHQ
VXUIDFH

WKH

)LJXUH 

ZKHHO

XQGHU

7LUH %UDNLQJ DQG &RUQHULQJ )RUFHV

WKH


FRPELQHG HIIHFW RI

:KHHOVWLUHVEUDNLQJ IRUFHV DQG



7LUHFRUQHULQJ IRUFHV



$QWLVNLG
$FWLYDWLRQ




)RUFH 

E\

%UDNLQJ )RUFH
&RUQHULQJ )RUFH









)UHH UROOLQJ ZKHHO









6OLS 5DWLR 

)LJXUH 

3KRWR FUHGLW  6H[WDQW $YLRQLFV

&URVVZLQG /DQGLQJV
3DJH 











$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

(IIHFW RI )XVHODJH DQG )LQ 6LGH )RUFH

7UDQVLHQW HIIHFWV VXFK DV WKH GLVWRUWLRQ RI WKH WLUH


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

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 

WKH

WLUHFRUQHULQJ

DQG

$V D FRQVHTXHQFH WKH LGHDO EDODQFH RI IRUFHV


LOOXVWUDWHG

E\

)LJXUH

UDUHO\

LV

(IIHFW RI 7KUXVW 5HYHUVHUV

VWHDGLO\

PDLQWDLQHG GXULQJ WKH LQLWLDO ODQGLQJ UROO

(IIHFW RI 7RXFKGRZQ RQ $OLJQPHQW

:KHQ

VHOHFWLQJ

DQJOH

WKH

UHYHUVH

UHYHUVH

WKUXVW

WKUXVW

ZLWK

UHVXOWV

VRPH

LQWR

WZR

FUDE
IRUFH

FRPSRQHQWV DV LOOXVWUDWHG E\ )LJXUH 

:KHQ WRXFKLQJ GRZQ ZLWK VRPH FUDE DQJOH RQ D GU\

VWRSSLQJ

IRUFH

DOLJQHG

DORQJ

WKH

DLUFUDIW

GLUHFWLRQ RI WUDYHO UXQZD\ FHQWHUOLQH  DQG

UXQZD\ WKH DLUFUDIW DXWRPDWLFDOO\ UHDOLJQV ZLWK WKH


GLUHFWLRQ RI WUDYHO GRZQ WKH UXQZD\

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 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

7KH

WKUXVW

UHYHUVHU

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

HIIHFW

GHFUHDVHV

ZLWK

0DLQWDLQLQJ  5HJDLQLQJ 'LUHFWLRQDO &RQWURO

GHFUHDVLQJ DLUVSHHG

7KH KLJKHU WKH ZKHHOWLUH EUDNLQJ IRUFH WKH ORZHU


$V

DLUVSHHG

GHFUHDVHV

GHFUHDVHV

DQG

LV

WKH

IXUWKHU

UXGGHU

DIIHFWHG

E\

HIILFLHQF\
WKH

WKH

DLUIORZ

WLUHFRUQHULQJ

WHQGV

WR

VNLG

IRUFH

WKHUHIRUH

VLGHZD\V

LI

UHOHDVLQJ

WKH

DLUFUDIW

WKH

EUDNHV

GLVUXSWLRQ FUHDWHG LQ WKH ZDNH RI WKH HQJLQH UHYHUVH

LH E\ WDNLQJ RYHU IURP WKH DXWREUDNH LQFUHDVHV

IORZ

WKH WLUHFRUQHULQJ DQG FRQWULEXWHV WR PDLQWDLQLQJ RU

SRVVLEO\

UHVXOWLQJ

LQ

GLIILFXOWLHV

WR

PDLQWDLQ

GLUHFWLRQDO FRQWURO

UHJDLQLQJ GLUHFWLRQDO FRQWURO


6HOHFWLQJ UHYHUVH LGOH FDQFHOV WKH HIIHFWV RI UHYHUVH
WKUXVW

(IIHFW RI %UDNLQJ

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

GXULQJ WKH ODQGLQJ UROO 

FRQWLQXH WR IO\ WKH DLUFUDIW

3HGDO EUDNLQJ FDQ EH DSSOLHG DXWREUDNH ZDV


SUHYLRXVO\

GLVDUPHG

ZKHQ

WDNLQJ

RYHU

LQ

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

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

2SWLPXP %UDNLQJ

JHDU

FUHDWLQJ DQ DGGLWLRQDO WHQGHQF\ WR WXUQ LQWRZLQG DV


LOOXVWUDWHG E\

)LJXUH 

5HIHU WR %ULHILQJ 1RWH



2SWLPXP

8VH

RI

%UDNLQJ 'HYLFHV

:KHQ

WKH

GLVWULEXWHG

UXQZD\
WKH

FRQWDPLQDQW

DQWLVNLG

V\VWHP

LV

QRW

PD\

HYHQO\
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

5HOXFWDQFH

WR

UHFRJQL]H

FKDQJHV

LQ

ODQGLQJ

GDWD RYHU WLPH LH ZLQG GLUHFWLRQ VKLIW ZLQG


YHORFLW\ RU JXVW LQFUHDVH 

)DLOXUH WR VHHN DGGLWLRQDO HYLGHQFH WR FRQILUP


WKH
LH

LQLWLDO

LQIRUPDWLRQ

UHOXFWDQFH

WR

DQG

FKDQJH

LQLWLDO

RSWLRQV

SUHHVWDEOLVKHG

SODQV 

5HOXFWDQFH

WR

GLYHUW

WR

DQ

DLUSRUW

ZLWK

OHVV

FURVVZLQG FRQGLWLRQV

/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 

$,5%86 ,1'8675,(

*HWWLQJ WR *ULSV ZLWK

)OLJKW 2SHUDWLRQV 6XSSRUW

$SSURDFKDQG/DQGLQJ $FFLGHQWV 5HGXFWLRQ

$VVRFLDWHG %ULHILQJ 1RWHV

'LIILFXOWLHV ZLWK SLWFKLQJ HIIHFW RI XQGHUZLQJ


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

,QHIIHFWLYH GLIIHUHQWLDO EUDNLQJ GXH WR WKH SDUWLDO

 3UHYHQWLQJ 5XQZD\ ([FXUVLRQV DQG

UHOHDVH RI WKH EUDNH SHGDO LH LI WKH EUDNH


SHGDO

LV

RQO\

SDUWLDOO\

UHOHDVHG

WKH

2YHUUXQV

EUDNLQJ

GHPDQG PD\ VWLOO H[FHHG WKH DQWLVNLG UHJXODWHG

 7KH )LQDO $SSURDFK 6SHHG

SUHVVXUH DQG WKXV VWLOO SURGXFH D V\PPHWULFDO


EUDNLQJ DFWLRQ 

 )DFWRUV $IIHFWLQJ /DQGLQJ 'LVWDQFHV

6XPPDU\ RI .H\ 3RLQWV

 2SWLPXP 8VH RI %UDNLQJ 'HYLFHV

$GKHUHQFH WR WKH IROORZLQJ NH\ SRLQWV LQFUHDVHV

 /DQGLQJ RQ :HW DQG &RQWDPLQDWHG

VDIHW\ GXULQJ FURVVZLQGODQGLQJ RSHUDWLRQV

8QGHUVWDQG

DOO

DSSOLFDEOH

RSHUDWLQJ

5XQZD\

IDFWRUV

PD[LPXP UHFRPPHQGHG YDOXHV DQG OLPLWDWLRQV

8VH

UHFRPPHQGHG

DQG

SXEOLVKHG

 :KDWV <RXU &XUUHQW :LQG "

IO\LQJ

5HJXODWRU\ 5HIHUHQFHV

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

5HTXHVW WKH DVVLJQPHQW RI D PRUH IDYRUDEOH


UXQZD\

LI

SUHYDLOLQJ

FURVVZLQG

UXQZD\

FRPSRQHQW

FRQGLWLRQV

DUH

,&$2 3UHSDUDWLRQ RI DQ 2SHUDWLRQV 0DQXDO

-$5236  DQG DVVRFLDWHG $SSHQGL[ 


 Q 2SHUDWLRQV PDQXDO VWUXFWXUH DQG

DQG

FRQWHQWV

FRQVLGHUHG

LQDGHTXDWH IRU D VDIH ODQGLQJ

$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

%H DOHUW WR GHWHFW FKDQJHV LQ $7,6 DQG WRZHU


PHVVDJHV

LH

ZLQG

GLUHFWLRQ

VKLIW

YHORFLW\

DQGRU JXVW LQFUHDVH  DQG

%HZDUH RI VPDOOVFDOH ORFDO HIIHFWV DVVRFLDWHG


ZLWK VWURQJ ZLQGV

8SGUDIWV DQG GRZQGUDIWV

9RUWLFHV

FUHDWHG

E\

EXLOGLQJV

IRUHVWV

RU

WHUUDLQ

&URVVZLQG /DQGLQJV
3DJH 

Potrebbero piacerti anche