6(%8
1RYHPEHU 2SHUDWLRQ DQG
0DLQWHQDQFH
0DQXDO
&DW 6HULHV DQG & 6HULHV 'LHVHO
(QJLQH )OXLGV 5HFRPPHQGDWLRQV
6SHFLDO 3XEOLFDWLRQ )RU $OO 6HULHV
& 6HULHV 'LHVHO (QJLQHV
6$)(7<&$7&20
L
,PSRUWDQW 6DIHW\ ,QIRUPDWLRQ
0RVW DFFLGHQWV WKDW LQYROYH SURGXFW RSHUDWLRQ PDLQWHQDQFH DQG UHSDLU DUH FDXVHG E\ IDLOXUH WR REVHUYH
EDVLF VDIHW\ UXOHV RU SUHFDXWLRQV $Q DFFLGHQW FDQ RIWHQ EH DYRLGHG E\ UHFRJQL]LQJ SRWHQWLDOO\ KD]DUGRXV
VLWXDWLRQV EHIRUH DQ DFFLGHQW RFFXUV $ SHUVRQ PXVW EH DOHUW WR SRWHQWLDO KD]DUGV LQFOXGLQJ KXPDQ IDFWRUV
WKDW FDQ DIIHFW VDIHW\ 7KLV SHUVRQ VKRXOG DOVR KDYH WKH QHFHVVDU\ WUDLQLQJ VNLOOV DQG WRROV WR SHUIRUP WKHVH
IXQFWLRQV SURSHUO\
,PSURSHU RSHUDWLRQ OXEULFDWLRQ PDLQWHQDQFH RU UHSDLU RI WKLV SURGXFW FDQ EH GDQJHURXV DQG FRXOG
UHVXOW LQ LQMXU\ RU GHDWK
'R QRW RSHUDWH RU SHUIRUP DQ\ OXEULFDWLRQ PDLQWHQDQFH RU UHSDLU RQ WKLV SURGXFW XQWLO \RX YHULI\
WKDW \RX DUH DXWKRUL]HG WR SHUIRUP WKLV ZRUN DQG KDYH UHDG DQG XQGHUVWRRG WKH RSHUDWLRQ
OXEULFDWLRQ PDLQWHQDQFH DQG UHSDLU LQIRUPDWLRQ
6DIHW\ SUHFDXWLRQV DQG ZDUQLQJV DUH SURYLGHG LQ WKLV PDQXDO DQG RQ WKH SURGXFW ,I WKHVH KD]DUG ZDUQLQJV
DUH QRW KHHGHG ERGLO\ LQMXU\ RU GHDWK FRXOG RFFXU WR \RX RU WR RWKHU SHUVRQV
7KH KD]DUGV DUH LGHQWLILHG E\ WKH ³6DIHW\ $OHUW 6\PERO´ DQG IROORZHG E\ D ³6LJQDO :RUG´ VXFK DV
³'$1*(5´ ³:$51,1*´ RU ³&$87,21´ 7KH 6DIHW\ $OHUW ³:$51,1*´ ODEHO LV VKRZQ EHORZ
7KH PHDQLQJ RI WKLV VDIHW\ DOHUW V\PERO LV DV IROORZV
$WWHQWLRQ %HFRPH $OHUW <RXU 6DIHW\ LV ,QYROYHG
7KH PHVVDJH WKDW DSSHDUV XQGHU WKH ZDUQLQJ H[SODLQV WKH KD]DUG DQG FDQ EH HLWKHU ZULWWHQ RU SLFWRULDOO\
SUHVHQWHG
$ QRQH[KDXVWLYH OLVW RI RSHUDWLRQV WKDW PD\ FDXVH SURGXFW GDPDJH DUH LGHQWLILHG E\ ಮ127,&(ಯ ODEHOV RQ
WKH SURGXFW DQG LQ WKLV SXEOLFDWLRQ
&DWHUSLOODU FDQQRW DQWLFLSDWH HYHU\ SRVVLEOH FLUFXPVWDQFH WKDW PLJKW LQYROYH D SRWHQWLDO KD]DUG
7KH ZDUQLQJV LQ WKLV SXEOLFDWLRQ DQG RQ WKH SURGXFW DUH WKHUHIRUH QRW DOO LQFOXVLYH <RX PXVW QRW
XVH WKLV SURGXFW LQ DQ\ PDQQHU GLIIHUHQW IURP WKDW FRQVLGHUHG E\ WKLV PDQXDO ZLWKRXW ILUVW VDWLVI\LQJ
\RXUVHOI WKDW \RX KDYH FRQVLGHUHG DOO VDIHW\ UXOHV DQG SUHFDXWLRQV DSSOLFDEOH WR WKH RSHUDWLRQ RI WKH
SURGXFW LQ WKH ORFDWLRQ RI XVH LQFOXGLQJ VLWHVSHFLILF UXOHV DQG SUHFDXWLRQV DSSOLFDEOH WR WKH
ZRUNVLWH ,I D WRRO SURFHGXUH ZRUN PHWKRG RU RSHUDWLQJ WHFKQLTXH WKDW LV QRW VSHFLILFDOO\
UHFRPPHQGHG E\ &DWHUSLOODU LV XVHG \RX PXVW VDWLVI\ \RXUVHOI WKDW LW LV VDIH IRU \RX DQG IRU RWKHUV
<RX VKRXOG DOVR HQVXUH WKDW \RX DUH DXWKRUL]HG WR SHUIRUP WKLV ZRUN DQG WKDW WKH SURGXFW ZLOO QRW EH
GDPDJHG RU EHFRPH XQVDIH E\ WKH RSHUDWLRQ OXEULFDWLRQ PDLQWHQDQFH RU UHSDLU SURFHGXUHV WKDW
\RX LQWHQG WR XVH
7KH LQIRUPDWLRQ VSHFLILFDWLRQV DQG LOOXVWUDWLRQV LQ WKLV SXEOLFDWLRQ DUH RQ WKH EDVLV RI LQIRUPDWLRQ WKDW ZDV
DYDLODEOH DW WKH WLPH WKDW WKH SXEOLFDWLRQ ZDV ZULWWHQ 7KH VSHFLILFDWLRQV WRUTXHV SUHVVXUHV
PHDVXUHPHQWV DGMXVWPHQWV LOOXVWUDWLRQV DQG RWKHU LWHPV FDQ FKDQJH DW DQ\ WLPH 7KHVH FKDQJHV FDQ
DIIHFW WKH VHUYLFH WKDW LV JLYHQ WR WKH SURGXFW 2EWDLQ WKH FRPSOHWH DQG PRVW FXUUHQW LQIRUPDWLRQ EHIRUH \RX
VWDUW DQ\ MRE &DW GHDOHUV KDYH WKH PRVW FXUUHQW LQIRUPDWLRQ DYDLODEOH
:KHQ UHSODFHPHQW SDUWV DUH UHTXLUHG IRU WKLV
SURGXFW &DWHUSLOODU UHFRPPHQGV XVLQJ &DW UH
SODFHPHQW SDUWV
)DLOXUH WR IROORZ WKLV ZDUQLQJ PD\ OHDG WR SUH
PDWXUH IDLOXUHV SURGXFW GDPDJH SHUVRQDO LQ
MXU\ RU GHDWK
,Q WKH 8QLWHG 6WDWHV WKH PDLQWHQDQFH UHSODFHPHQW RU UHSDLU RI WKH HPLVVLRQ FRQWURO GHYLFHV DQG
V\VWHPV PD\ EH SHUIRUPHG E\ DQ\ UHSDLU HVWDEOLVKPHQW RU LQGLYLGXDO RI WKH RZQHU V FKRRVLQJ
6(%8
7DEOH RI &RQWHQWV
7DEOH RI &RQWHQWV
)RUHZRUG 0DLQWHQDQFH 6HFWLRQ
/XEULFDQW 6SHFLILFDWLRQV )XHO 6SHFLILFDWLRQV &RROLQJ 6\VWHP 6SHFLILFDWLRQV ([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV &RQWDPLQDWLRQ &RQWURO 5HIHUHQFH ,QIRUPDWLRQ 6HFWLRQ
5HIHUHQFH 0DWHULDOV ,QGH[ 6HFWLRQ
,QGH[ 6(%8
)RUHZRUG
)RUHZRUG
/LWHUDWXUH ,QIRUPDWLRQ
7KLV PDQXDO VKRXOG EH VWRUHG LQ WKH OLWHUDWXUH VWRUDJH
DUHD
7KH LQIRUPDWLRQ FRQWDLQHG LQ WKLV GRFXPHQW LV WKH
PRVW FXUUHQW LQIRUPDWLRQ DYDLODEOH IRU FRRODQWV IXHOV
DQG OXEULFDQWV 5HIHU WR WKH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO IRU DQ\ VSHFLDO OXEULFDWLRQ
UHTXLUHPHQWV IRU \RXU HQJLQH
:KHQHYHU D TXHVWLRQ DULVHV UHJDUGLQJ WKH HQJLQH
WKLV SXEOLFDWLRQ RU WKH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO SOHDVH FRQVXOW DQ\ &DW GHDOHU IRU WKH ODWHVW
DYDLODEOH LQIRUPDWLRQ
6DIHW\
5HIHU WR WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU
\RXU HQJLQH IRU DOO VDIHW\ LQIRUPDWLRQ 5HDG DQG
XQGHUVWDQG WKH EDVLF VDIHW\ SUHFDXWLRQV OLVWHG LQ WKH
6DIHW\ 6HFWLRQ ,Q DGGLWLRQ WR VDIHW\ SUHFDXWLRQV WKLV
VHFWLRQ LGHQWLILHV WKH WH[W DQG ORFDWLRQV RI VDIHW\ VLJQV
XVHG RQ WKH HQJLQH
5HDG DQG XQGHUVWDQG WKH EDVLF SUHFDXWLRQV OLVWHG LQ
WKH 6DIHW\ 6HFWLRQ EHIRUH RSHUDWLQJ RU SHUIRUPLQJ
OXEULFDWLRQ PDLQWHQDQFH DQG UHSDLU RQ WKLV HQJLQH
0DLQWHQDQFH
5HIHU WR WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU
\RXU HQJLQH WR GHWHUPLQH DOO PDLQWHQDQFH
UHTXLUHPHQWV
0DLQWHQDQFH ,QWHUYDOV
8VH WKH 0DLQWHQDQFH ,QWHUYDO 6FKHGXOH LQ WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU \RXU HQJLQH
WR GHWHUPLQH VHUYLFLQJ LQWHUYDOV 7KH DFWXDO RSHUDWLQJ
HQYLURQPHQW RI WKH HQJLQH DOVR JRYHUQV WKH
PDLQWHQDQFH LQWHUYDO VFKHGXOH 7KHUHIRUH XQGHU
H[WUHPHO\ VHYHUH GXVW\ ZHW RU IUHH]LQJ FROG
RSHUDWLQJ FRQGLWLRQV PRUH IUHTXHQW OXEULFDWLRQ DQG
PDLQWHQDQFH WKDQ LV VSHFLILHG LQ WKH 0DLQWHQDQFH
,QWHUYDO 6FKHGXOH PD\ EH QHFHVVDU\
([WHQGHG (QJLQH 2LO 'UDLQV DQG :DUUDQW\
)DLOXUHV WKDW UHVXOW IURP H[WHQGHG RLO GUDLQ SHULRGV
DUH QRW &DWHUSLOODU IDFWRU\ GHIHFWV DQG WKHUHIRUH DUH
QRW FRYHUHG E\ &DWHUSLOODU V ZDUUDQW\ ,Q DGGLWLRQ
IDLOXUHV WKDW UHVXOW IURP QRW XVLQJ WKH UHFRPPHQGHG
RLO W\SH DUH QRW &DWHUSLOODU IDFWRU\ GHIHFWV DQG
WKHUHIRUH DUH QRW FRYHUHG E\ &DWHUSLOODU V ZDUUDQW\
5HIHU WR WKH DSSOLFDEOH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO IRU VWDQGDUG RLO GUDLQ SHULRGV DQG WR WKH
0DLQWHQDQFH 6HFWLRQ ³/XEULFDQW 6SHFLILFDWLRQV´ RI
WKLV SXEOLFDWLRQ IRU HQJLQH RLO W\SH DQG YLVFRVLW\ JUDGH
UHFRPPHQGDWLRQV
7R UHGXFH WKH SRWHQWLDO ULVN RI IDLOXUHV DVVRFLDWHG ZLWK
H[WHQGHG RLO GUDLQ SHULRGV LW LV UHFRPPHQGHG WKDW RLO
GUDLQ LQWHUYDOV RQO\ EH H[WHQGHG EDVHG RQ RLO
DQDO\VLV DQG VXEVHTXHQW HQJLQH LQVSHFWLRQV 2LO
DQDO\VLV DORQH GRHV QRW SURYLGH DQ LQGLFDWLRQ RI WKH
UDWH RI IRUPDWLRQ RI ODFTXHU YDUQLVK DQGRU FDUERQ RQ
SLVWRQV DQG RWKHU HQJLQH VXUIDFHV 7KH RQO\ DFFXUDWH
ZD\ WR HYDOXDWH VSHFLILF RLO SHUIRUPDQFH LQ D VSHFLILF
HQJLQH DQG DSSOLFDWLRQ WKDW XWLOL]HV H[WHQGHG RLO GUDLQ
SHULRGV LV WR REVHUYH WKH HIIHFWV RQ WKH HQJLQH
FRPSRQHQWV 7KLV LQYROYHV WHDUGRZQ LQVSHFWLRQV RI
HQJLQHV WKDW KDYH UXQ WR WKHLU QRUPDO RYHUKDXO SHULRG
ZLWK H[WHQGHG RLO GUDLQ LQWHUYDOV )ROORZLQJ WKLV
UHFRPPHQGDWLRQ ZLOO KHOS HQVXUH WKDW H[FHVVLYH
FRPSRQHQW ZHDU GRHV QRW WDNH SODFH LQ D JLYHQ
DSSOLFDWLRQ
127,&(
/LJKW ORDGV ORZ KRXU DFFXPXODWLRQ DQG H[FHVVLYH
LGOLQJ WLPH FDQ FRQWULEXWH WR H[FHVVLYH ZDWHU LQ WKH
FUDQNFDVH RLO &RUURVLYH GDPDJH SLVWRQ GHSRVLWV DQG
LQFUHDVHG RLO FRQVXPSWLRQ FDQ DOVR UHVXOW ,I RLO DQDO\
VLV LV QRW GRQH RU WKH UHVXOWV DUH LJQRUHG WKH SRWHQWLDO
IRU FRUURVLYH GDPDJH DQG SLVWRQ GHSRVLWV LQFUHDVHV
5HIHU WR WKH DSSURSULDWH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO IRU JXLGDQFH
1RWH )DLOXUHV WKDW UHVXOW IURP H[WHQGHG RLO GUDLQ
SHULRGV DUH QRW ZDUUDQWDEOH IDLOXUHV UHJDUGOHVV RI
XVH RI WKLV UHFRPPHQGHG SURFHGXUH )DLOXUHV WKDW
UHVXOW IURP H[WHQGHG HQJLQH RLO GUDLQ SHULRGV DUH
FRQVLGHUHG LPSURSHU XVH XQGHU WKH ZDUUDQW\
$IWHUPDUNHW 3URGXFWV DQG :DUUDQW\
127,&(
:KHQ DX[LOLDU\ GHYLFHV DFFHVVRULHV RU FRQVXPDEOHV
ILOWHUV RLO DGGLWLYHV FDWDO\VWV IXHO HWF PDGH E\
RWKHU PDQXIDFWXUHUV DUH XVHG RQ &DWHUSLOODU SURGXFWV
WKH &DWHUSLOODU ZDUUDQW\ LV QRW DIIHFWHG VLPSO\ EH
FDXVH RI VXFK XVH )DLOXUHV WKDW UHVXOW IURP WKH LQVWDO
ODWLRQ RU XVDJH RI RWKHU PDQXIDFWXUHUV DX[LOLDU\
GHYLFHV DFFHVVRULHV RU FRQVXPDEOHV KRZHYHU DUH
QRW &DWHUSLOODU IDFWRU\ GHIHFWV DQG WKHUHIRUH DUH 127
FRYHUHG E\ &DWHUSLOODU V ZDUUDQW\
&DWHUSLOODU LV QRW LQ D SRVLWLRQ WR HYDOXDWH WKH PDQ\
DX[LOLDU\ GHYLFHV DFFHVVRULHV RU FRQVXPDEOHV SUR
PRWHG E\ RWKHU PDQXIDFWXUHUV DQG WKHLU HIIHFW RQ &DW
HUSLOODU SURGXFWV ,QVWDOODWLRQ RU XVH RI VXFK LWHPV LV DW
WKH GLVFUHWLRQ RI WKH FXVWRPHU ZKR DVVXPHV $// ULVNV
IRU WKH HIIHFWV WKDW UHVXOW IURP WKLV XVDJH
)XUWKHUPRUH &DWHUSLOODU GRHV QRW DXWKRUL]H WKH XVH RI
LWV WUDGH QDPH WUDGHPDUN RU ORJR LQ D PDQQHU ZKLFK
LPSOLHV RXU HQGRUVHPHQW RI WKHVH DIWHUPDUNHW
SURGXFWV
6(%8
0DLQWHQDQFH 6HFWLRQ
/XEULFDQW ,QIRUPDWLRQ
0DLQWHQDQFH 6HFWLRQ
/XEULFDQW 6SHFLILFDWLRQV
0DQ\ RI WKH JXLGHOLQHV UHFRPPHQGDWLRQV DQG
UHTXLUHPHQWV WKDW DUH SURYLGHG LQ WKLV 6SHFLDO
3XEOLFDWLRQ DUH LQWHUUHODWHG %HIRUH XVLQJ WKH
SURYLGHG LQIRUPDWLRQ 7KH XVHU LV UHVSRQVLEOH WR UHDG
WKLV 6SHFLDO 3XEOLFDWLRQ DQG XQGHUVWDQG WKH
LQIRUPDWLRQ SURYLGHG
60&6 &RGH 7KH XVHU LV UHVSRQVLEOH WR IROORZ DOO VDIHW\ JXLGHOLQHV
IRXQG LQ WKLV 6SHFLDO 3XEOLFDWLRQ DQG LQ WKH HQJLQH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO ZKHQ SHUIRUPLQJ
DOO UHFRPPHQGHG DQGRU UHTXLUHG HQJLQH HQJLQH
V\VWHPV DQGRU PDFKLQH PDLQWHQDQFH
127,&(
(YHU\ DWWHPSW LV PDGH WR SURYLGH DFFXUDWH XSWRGDWH
LQIRUPDWLRQ %\ WKH XVH RI WKLV GRFXPHQW \RX DJUHH
WKDW &DWHUSLOODU ,QF LV QRW UHVSRQVLEOH IRU HUURUV RU
RPLVVLRQV
)RU TXHVWLRQV FRQFHUQLQJ WKH LQIRUPDWLRQ SUHVHQWHG
LQ WKLV 6SHFLDO 3XEOLFDWLRQ DQGRU LQ \RXU SURGXFW
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO DQGRU IRU
DGGLWLRQDO JXLGHOLQHV DQG UHFRPPHQGDWLRQV
LQFOXGLQJ PDLQWHQDQFH LQWHUYDO UHFRPPHQGDWLRQV
UHTXLUHPHQWV FRQVXOW \RXU &DW GHDOHU
L
/XEULFDQW ,QIRUPDWLRQ
7KH LQIRUPDWLRQ WKDW LV SURYLGHG LV WKH ODWHVW
UHFRPPHQGDWLRQV IRU &DW GLHVHO HQJLQHV WKDW DUH
FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ 7KLV LQIRUPDWLRQ
VXSHUVHGHV DOO SUHYLRXV UHFRPPHQGDWLRQV ZKLFK
KDYH EHHQ SXEOLVKHG IRU &DW GLHVHO HQJLQHV WKDW DUH
FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ 6SHFLDO IOXLGV DUH
UHTXLUHG IRU VRPH HQJLQHV 7KHVH IOXLGV ZLOO VWLOO EH
QHFHVVDU\ LQ WKRVH HQJLQHV 5HIHU WR WKH DSSOLFDEOH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
7KLV SXEOLFDWLRQ LV D VXSSOHPHQW WR WKH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO 7KLV SXEOLFDWLRQ GRHV QRW
UHSODFH WKH HQJLQHVSHFLILF 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDOV
127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
&RPPHUFLDO SURGXFWV WKDW PDNH JHQHULF FODLPV RI
PHHWLQJ ³&DW ´ DQGRU ³&DW ´ UHTXLUHPHQWV ZLWKRXW
OLVWLQJ WKH VSHFLILF &DW UHFRPPHQGDWLRQV DQGRU
UHTXLUHPHQWV WKDW DUH PHW PD\ QRW SURYLGH
DFFHSWDEOH SHUIRUPDQFH 5HGXFHG HQJLQH DQGRU
PDFKLQH IOXLG FRPSDUWPHQW OLIH PD\ UHVXOW 5HIHU WR
WKLV 6SHFLDO 3XEOLFDWLRQ DQG UHIHU WR WKH SURGXFW
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU &DW IOXLGV
UHFRPPHQGDWLRQV DQGRU UHTXLUHPHQWV
8VH RI IOXLGV WKDW GR QRW PHHW DW OHDVW WKH PLQLPXP
SHUIRUPDQFH UHFRPPHQGDWLRQV DQGRU UHTXLUHPHQWV
PD\ OHDG WR ORZHU FRPSDUWPHQW SHUIRUPDQFH DQGRU
FRPSDUWPHQW IDLOXUH
3UREOHPVIDLOXUHV WKDW DUH FDXVHG E\ XVLQJ IOXLGV WKDW
GR QRW PHHW WKH PLQLPXP UHFRPPHQGHG DQGRU
UHTXLUHG SHUIRUPDQFH OHYHO IRU WKH FRPSDUWPHQW DUH
QRW ZDUUDQWDEOH E\ &DWHUSLOODU ,QF 7KH IOXLG
PDQXIDFWXUHU DQG FXVWRPHU DUH UHVSRQVLEOH
,Q RUGHU WR DYRLG SRWHQWLDO GDPDJH WR \RXU &DW&DW
HQJLQH RQO\ SXUFKDVH &DW IOXLGV DQG &DW ILOWHUV
WKURXJK \RXU &DW GHDOHU RU &DW DXWKRUL]HG RXWOHWV )RU
D OLVW RI DXWKRUL]HG &DW SDUWV RXWOHWV LQ \RXU DUHD
FRQVXOW \RXU &DW GHDOHU
:KHQ IOXLGV PDGH E\ RWKHU PDQXIDFWXUHUV DUH XVHG
RQ &DW SURGXFWV WKH &DW ZDUUDQW\ LV QRW DIIHFWHG
VLPSO\ EHFDXVH RI VXFK XVH )DLOXUHV WKDW UHVXOW IURP
WKH LQVWDOODWLRQ RU XVDJH RI RWKHU PDQXIDFWXUHU IOXLGV
KRZHYHU DUH QRW &DW IDFWRU\ GHIHFWV DQG WKHUHIRUH
DUH 127 FRYHUHG E\ WKH &DW ZDUUDQW\ &DW LV QRW LQ D
SRVLWLRQ WR HYDOXDWH WKH PDQ\ IOXLGV SURPRWHG E\
RWKHU PDQXIDFWXUHUV DQG WKH HIIHFW RQ &DW SURGXFWV
,QVWDOODWLRQ RU XVH RI VXFK LWHPV LV DW WKH GLVFUHWLRQ RI
WKH FXVWRPHU ZKR DVVXPHV $// ULVNV IRU WKH HIIHFWV
WKDW UHVXOW IURP WKLV XVDJH
,I \RX SXUFKDVH ZKDW DSSHDU WR EH &DW IOXLGV DQG
RU &DW ILOWHUV WKURXJK RWKHU RXWOHWVVRXUFHV \RX
DUH DW D YHU\ KLJK ULVN RI SXUFKDVLQJ FRXQWHUIHLW
³ORRNDOLNH´ SURGXFWV
'LIIHUHQW EUDQG RLOV PD\ XVH GLIIHUHQW DGGLWLYH
SDFNDJHV WR PHHW WKH YDULRXV HQJLQH SHUIRUPDQFH
FDWHJRU\VSHFLILFDWLRQ UHTXLUHPHQWV )RU WKH EHVW
UHVXOWV GR QRW PL[ RLO EUDQGV
)DLOXUH WR IROORZ WKH UHFRPPHQGDWLRQV IRXQG LQ WKLV
6SHFLDO 3XEOLFDWLRQ FDQ FDXVH HQJLQH IDLOXUHV
VKRUWHQHG HQJLQH VHUYLFH OLIH DQG UHGXFHG HQJLQH
SHUIRUPDQFH
&RXQWHUIHLW RU ³ORRNDOLNH´ SURGXFWV PD\ YLVXDOO\
DSSHDU WKH VDPH DV WKH RULJLQDO &DW SURGXFW 7KH
SURGXFW SHUIRUPDQFH DQG LQWHUQDO TXDOLW\ ZLOO W\SLFDOO\
EH YHU\ ORZ
&RXQWHUIHLW RU ³ORRNDOLNH´ SURGXFWV KDYH D YHU\ KLJK
OLNHOLKRRG RI FDXVLQJ DQGRU DOORZLQJ HQJLQH DQGRU
PDFKLQH FRPSDUWPHQW GDPDJH
7KH RYHUDOO SHUIRUPDQFH RI HQJLQH DQG PDFKLQH
FRPSDUWPHQWV LV GHSHQGHQW RQ WKH FKRLFH RI WKH
OXEULFDQWV DQG RQ WKH PDLQWHQDQFH DQG FOHDQOLQHVV
SUDFWLFHV 7KH FKRLFHV LQFOXGH ILOWUDWLRQ SURGXFWV
FRQWDPLQDWLRQ FRQWURO WDQN PDQDJHPHQW DQG
JHQHUDO KDQGOLQJ SUDFWLFHV &DW GHVLJQHG DQG
SURGXFHG ILOWUDWLRQ SURGXFWV RIIHU RSWLPDO SHUIRUPDQFH
DQG V\VWHP SURWHFWLRQ
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
,Q RUGHU WR REWDLQ DGGLWLRQDO LQIRUPDWLRQ RQ &DW
GHVLJQHG DQG SURGXFHG ILOWUDWLRQ SURGXFWV UHIHU WR WKH
³5HIHUHQFH 0DWHULDO´ DUWLFOH ³)LOWHUV´ DQG
³0LVFHOODQHRXV´ WRSLFV LQ WKLV 6SHFLDO 3XEOLFDWLRQ RU
FRQVXOW \RXU &DW GHDOHU IRU DVVLVWDQFH ZLWK ILOWUDWLRQ
UHFRPPHQGDWLRQV IRU \RXU &DW PDFKLQH
1RWH ,Q RUGHU WR KHOS HQVXUH WKH PD[LPXP H[SHFWHG
FRPSDUWPHQW SHUIRUPDQFH DQG OLIH XVH D IOXLG WKDW
PHHWV &DW KLJKHVW OHYHO RI IOXLG SHUIRUPDQFH DV
GHVFULEHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ IRU WKH
FRPSDUWPHQW 8VLQJ D IOXLG WKDW LV FRQVLGHUHG DQ
DFFHSWDEOH EXW ORZHU SHUIRUPLQJ RSWLRQ IRU W\SLFDO
DSSOLFDWLRQV ZLOO SURYLGH ORZHU SHUIRUPDQFH
127,&(
)DXOW\ HQJLQH FRRODQW WHPSHUDWXUH UHJXODWRUV RU RS
HUDWLQJ ZLWK OLJKW ORDGV VKRUW RSHUDWLRQ F\FOHV H[FHV
VLYH LGOLQJ RU RSHUDWLQJ LQ DSSOLFDWLRQV ZKHUH QRUPDO
RSHUDWLQJ WHPSHUDWXUH LV VHOGRP UHDFKHG FDQ FRQWULE
XWH WR H[FHVVLYH ZDWHU LQ WKH FUDQNFDVH RLO &RUURVLYH
GDPDJH SLVWRQ GHSRVLWV LQFUHDVHG RLO FRQVXPSWLRQ
DQG RWKHU GDPDJH FDQ UHVXOW ,I D FRPSOHWH RLO DQDO\
VLV SURJUDP LV QRW IROORZHG RU LI WKH UHVXOWV DUH
LJQRUHG WKH SRWHQWLDO IRU GDPDJH LQFUHDVHV )ROORZ
HQJLQH ZDUPXS UHFRPPHQGDWLRQV SURYLGHG LQ WKLV
6SHFLDO 3XEOLFDWLRQ DQGRU JLYHQ LQ \RXU HQJLQH 2SHU
DWLRQ DQG 0DLQWHQDQFH 0DQXDO
L
(QJLQH 2LO
60&6 &RGH 7KLV DUWLFOH FRQWDLQV HQJLQH FUDQNFDVH IOXLG
UHFRPPHQGDWLRQV IRU DOO &DW 6HULHV &
6HULHV HQJLQHV LQFOXGLQJ PDULQH HQJLQHV VPDOOHU
'LUHFW ,QMHFWLRQ ', HQJLQHV DQG 3UHFRPEXVWLRQ
&KDPEHU 3& HQJLQHV (QJLQH RLO UHTXLUHPHQWV RI
WKHVH HQJLQHV DUH GLIIHUHQW WKDQ VPDOOHU HQJLQHV GXH
WR WKH VSHFLILF ORDGV F\FOHV DQG HQJLQH VSHHG RI
WKHVH HQJLQH PRGHOV
(QJLQH OXEULFDQWV SOD\ PXOWLSOH UROHV LQ HQJLQHV
$SSURSULDWH OXEULFDQWV RIIHU WKH IROORZLQJ
3URYLGH OXEULFDWLRQ WR WKH PRYLQJ FRPSRQHQWV RI
WKH HQJLQH XQGHU D ZLGH UDQJH RI WHPSHUDWXUHV
.HHS WKH HQJLQH FRPSRQHQWV FOHDQ DQG UHPRYH
ZHDU GHEULV
5HPRYH KHDW IURP WKH OXEULFDWHG FRPSRQHQWV
1HXWUDOL]H DFLGLF SURGXFWV GXH WR FRPEXVWLRQ
SURFHVV
3URWHFW WKH HQJLQH IURP FDYLWDWLRQ DQG IRDPLQJ
3URWHFW WKH HQJLQH IURP FRUURVLRQ DQG UXVW
&RQWURO 2LO &RQVXPSWLRQ
'LVSHUVH6ROXELOL]H &RQWDPLQDQWV 6RRW
6XSSRUW WKH UHJXODWHG HQJLQH HPLVVLRQV OLPLWV
&XUUHQW OXEULFDQW IRUPXODWLRQV DUH PRUH DGYDQFHG
DQG FRPSOH[ WKDQ SUHYLRXV IRUPXODWLRQV &XUUHQW
OXEULFDQWV DUH GHYHORSHG WR VXSSRUW DGYDQFHG HQJLQH
WHFKQRORJLHV WKDW KDYH ORZHU HPLVVLRQV ZKLOH
VXSSRUWLQJ WKH SHUIRUPDQFH DQG GXUDELOLW\ RI WKHVH
HQJLQHV
+LJK SHUIRUPDQFH RLOV DUH SURGXFHG DQG YDOLGDWHG
XVLQJ LQGXVWU\ VWDQGDUG WHVWV SURSULHWDU\ WHVWV ILHOG
WHVWV DQG RIWHQ SULRU H[SHULHQFH ZLWK VLPLODU
IRUPXODWLRQ &DW KLJK TXDOLW\ DQG KLJK SHUIRUPDQFH
OXEULFDQWV DUH YDOLGDWHG EDVHG RQ WKHVH IDFWRUV
,Q RUGHU WR SURYLGH RSWLPDO HQJLQH SHUIRUPDQFH DQG
OLIH DQG FRPSO\ ZLWK UHJXODWHG HPLVVLRQ UHGXFWLRQ
XVH WKH UHFRPPHQGHG HQJLQH RLO DV SURYLGHG LQ WKLV
VSHFLDO SXEOLFDWLRQ 'XH WR WKH VLJQLILFDQW YDULDWLRQV LQ
WKH TXDOLW\ DQG SHUIRUPDQFH RI FRPPHUFLDOO\
DYDLODEOH RLOV &DW UHFRPPHQGV WKH XVH RI &DW RLOV DV
GHWDLOHG LQ WKLV DUWLFOH
&DW 'LHVHO (QJLQH 2LOV
&DW IOXLGV KDYH EHHQ GHYHORSHG DQG WHVWHG E\ &DW LQ
RUGHU WR SURYLGH WKH IXOO SHUIRUPDQFH DQG VHUYLFH OLIH
WKDW KDV EHHQ GHVLJQHG DQG EXLOW LQWR &DW HQJLQHV
7KH TXDOLW\ RI ILQLVKHG RLO LV GHSHQGHQW RQ WKH TXDOLW\
RI WKH EDVH VWRFN WKH TXDOLW\ RI WKH DGGLWLYHV DQG WKH
FRPSDWLELOLW\ RI WKH EDVH VWRFN DQG DGGLWLYHV &DW
IOXLGV DUH IRUPXODWHG RI KLJK TXDOLW\ UHILQHG RLO EDVH
VWRFNV DQG DGGLWLYHV RI RSWLPDO FKHPLVWU\ DQG
TXDQWLW\ LQ RUGHU WR SURYLGH KLJK SHUIRUPDQFH LQ
HQJLQHV DQG PDFKLQH FRPSRQHQWV &DW IOXLGV DUH
XVHG IRU IDFWRU\ ILOO RI &DW HQJLQHV DQG FRPSRQHQWV
DQG DUH RIIHUHG E\ &DW GHDOHUV IRU VHUYLFH ILOOV DQG DV
DIWHUPDUNHW SURGXFWV &RQVXOW \RXU &DW GHDOHU IRU
PRUH LQIRUPDWLRQ RQ WKHVH &DW IOXLGV
'XH WR VLJQLILFDQW YDULDWLRQV LQ WKH TXDOLW\ DQG LQ WKH
SHUIRUPDQFH RI FRPPHUFLDOO\ DYDLODEOH RLOV &DW
UHFRPPHQGV WKH RLOV WKDW DUH OLVWHG LQ 7DEOH IRU
DQG & 6HULHV HQJLQHV WKDW XVH GLVWLOODWH
GLHVHO IXHO
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
7DEOH &DW (QJLQH /XEULFDQWV IRU DQG & 6HULHV (QJLQHV
9LVFRVLW\ *UDGH
6$( :
&DW '(28/6
'LHVHO (QJLQH 2LO8OWUD /RZ 6XOIXU $3, &-
6$( :
&DW '(28/6 &ROG :HDWKHU
'LHVHO (QJLQH 2LO $3, &,
&DW '(2
'LHVHO (QJLQH 2LO $3, &)
&DW '(2
6$( :
6$( :
6$( :
6$( $3, &) FDWHJRU\ LV REVROHWH 7KHVH RLOV DUH SHU WKH UHTXLUHPHQWV RI $3, &) FDWHJRU\
7DEOH &DW *UHDVH DQG &RRODQW 3URGXFWV
&DW 0XOWLSXUSRVH *UHDVH
&DW 0DULQH 0XOWLSXUSRVH *UHDVH
&DW $GYDQFHG 0RO\ *UHDVH
&DW 8OWUD 0RO\ *UHDVH PXOWLSOH 1/*, *UDGHV
*UHDVH
&DW 'HVHUW *ROG *UHDVH
&DW $UFWLF 3ODWLQXP *UHDVH
&DW +LJK 6SHHG %DOO %HDULQJ *UHDVH
&DW +DPPHU 3DVWH
&DW :KLWH $VVHPEO\ *UHDVH
&DW (/& ([WHQGHG /LIH &RRODQW
&DW (/& ([WHQGHU IRU XVH ZLWK &DW (/&
&RRODQWV
&DW (/, ([WHQGHG /LIH ,QKLELWRU QRQJO\FRO EDVHG FRRODQW
&DW '($& 'LHVHO (QJLQH $QWLIUHH]H&RRODQW
&DW 6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH IRU XVH ZLWK ZDWHU RU ZLWK
&DW '($&
1RWH &DW HQJLQH RLOV H[FHHG WKH SHUIRUPDQFH
UHTXLUHPHQWV RI WKH UHVSHFWLYH $3, FDWHJRULHV
7KLV LQIRUPDWLRQ DSSOLHV WR &DW DQG & 6HULHV
HQJLQHV )RU PRUH OXEULFDQW UHFRPPHQGDWLRQV VHH
WKH IROORZLQJ 6SHFLDO 3XEOLFDWLRQV
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&DWHUSLOODU
0DFKLQH )OXLGV 5HFRPPHQGDWLRQV´
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&DWHUSLOODU 2Q
+LJKZD\ 'LHVHO (QJLQH )OXLGV 5HFRPPHQGDWLRQV´
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&DWHUSLOODU *DV
(QJLQH )OXLGV 5HFRPPHQGDWLRQV´
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&DW
&RPPHUFLDO 'LHVHO (QJLQH )OXLGV
5HFRPPHQGDWLRQV´
1RWH 7KH RSWLPDO DSSOLFDWLRQ RI WKH OXEULFDQWV LV
GHSHQGHQW RQ WKH RLO TXDOLW\ DQG WKH PDLQWHQDQFH
SUDFWLFHV 6XFK SUDFWLFHV LQFOXGH FRQWDPLQDWLRQ
FRQWURO WDQN PDQDJHPHQW DQG JHQHUDO KDQGOLQJ
SUDFWLFHV
$OZD\V FRQVXOW \RXU &DW GHDOHU LQ RUGHU WR HQVXUH
WKDW \RX KDYH WKH FXUUHQW UHYLVLRQ OHYHO RI WKH
SXEOLFDWLRQ
&DW GLHVHO HQJLQH RLOV JLYHQ LQ 7DEOH DUH WKH
UHFRPPHQGHG RLOV IRU 6HULHV DQG & 6HULHV
HQJLQHV FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ
&RPPHUFLDO DOWHUQDWLYH GLHVHO HQJLQH RLOV DUH DV D
JURXS VHFRQG FKRLFH RLOV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
7DEOH &DW (QJLQH /XEULFDQWV 5HFRPPHQGDWLRQV IRU DQG & 6HULHV 'LHVHO (QJLQHV 7LHU &HUWLILHG 3UH 7LHU &HUWLILHG
&DW '(2 VLQJOH JUDGH RLOV
&DW '(28/6 3UHIHUUHG
&DW '(28/6
&DW '(2 PXOWLJUDGH RLOV
&RPPHUFLDO /XEULFDQWV
&DW (&)$3, &- DQG )LHOG 3URRI RI
3HUIRUPDQFH
)LHOG 3URRI RI 3HUIRUPDQFH DQG &DW (&)
$3, &- &DW (&) &DW (&) RU $3, &)
TXDOLW\ RLOV
1RQ5RDG 7LHU (3$ &HUWLILHG HQJLQHV ZLWK DIWHUWUHDWPHQW GHYLFHV UHTXLUH WKH XVH RI &DW '(28/6 SUHIHUUHG RU FRPPHUFLDO RLOV WKDW PHHW
&DW (&) $3, &- UHTXLUHPHQWV DQG KDYH SDVVHG WKH ILHOG SURRI RI SHUIRUPDQFH
& PDULQH HQJLQH DUH 7LHU &HUWLILHG 7KHVH HQJLQHV DUH HTXLSSHG ZLWK DIWHUWUHDWPHQW GHYLFHV
(QJLQHV XVLQJ D VLQJOH JUDGH '(2 UHIHU WR \RXU &DW GHDOHU WR YHULI\ WKH DVK OHYHO LQ WKH RLO
1RWH $3, HQJLQH RLO FDWHJRULHV DUH EDFNZDUGV
FRPSDWLEOH &DW '(28/6 $3, &- RLO FDQ EH
XVHG LQ DOO HQJLQHV ZLWK VRPH UHVWULFWLRQV UHODWHG WR
IXHO VXOIXU OHYHO UHIHU WR 7DEOH IRU PRUH GHWDLOV
1RWH (DFK RI WKH &DW (&) VSHFLILFDWLRQV SURYLGHV
LQFUHDVHG SHUIRUPDQFH RYHU ORZHU &DW (&)
VSHFLILFDWLRQV )RU H[DPSOH &DW (&) SURYLGHV
KLJKHU SHUIRUPDQFH WKDQ &DW (&) DQG &DW (&)
SURYLGHV PXFK KLJKHU SHUIRUPDQFH WKDQ &DW (&)
D 5HIHU WR WDEOH IRU GHWDLOV
)RU & 7LHU 8QLWHG 6WDWHV (QYLURQPHQWDO
3URWHFWLRQ $JHQF\ 86 (3$ FHUWLILHG HQJLQHV WKDW
DUH HTXLSSHG ZLWK DIWHUWUHDWPHQW GHYLFHV UHIHU WR WKH
VSHFLILF VHFWLRQ RI WKLV FKDSWHU
7DEOH &DW (QJLQH &UDQNFDVH )OXLGV (&) 'HILQLWLRQV &DW 0LQLPXP 3HUIRUPDQFH 5HTXLUHPHQWV IRU &RPPHUFLDO
2LOV
&DW (&) 6SHFLILFDWLRQV 5HTXLUHPHQWV
&DW (&)
$3, &- 2LO &DWHJRU\ SHUIRUPDQFH UHTXLUHPHQWV
&DW (&)
$3, &, &, 3/86 2LO &DWHJRU\ SHUIRUPDQFH UHTXLUHPHQWV DQG
3DVVLQJ VWDQGDUG &DW & HQJLQH WHVW SHU $3, UHTXLUHPHQWV DQG
2LOV RI VXOIDWHG DVK ! SHUFHQW DUH QRW DOORZHG
&DW (&)D
$3, &+ 2LO &DWHJRU\ SHUIRUPDQFH UHTXLUHPHQWV DQG
)RU RLOV WKDW DUH EHWZHHQ SHUFHQW DQG SHUFHQW VXOIDWHG DVK SDVV
LQJ RQH DGGLWLRQDO &DW 3 6&27( WHVW ³$670 '´ LV UHTXLUHG DQG
2LOV RI VXOIDWHG DVK ! SHUFHQW DUH QRW DOORZHG
&DW (&) VSHFLILFDWLRQV GHVFULEH WKH PLQLPXP WHFKQLFDO UHTXLUHPHQWV IRU HQJLQH RLOV UHFRPPHQGHG IRU XVH LQ &DW HQJLQHV &DW GLHVHO HQJLQH
RLOV SHUIRUPDQFH H[FHHG (&) VSHFLILFDWLRQV
&DW GLHVHO HQJLQH RLOV '(28/6 DQG &DW '(2
H[FHHG WKH OLPLWV RI WKH UHVSHFWLYH $3, FDWHJRULHV
7KHVH GLHVHO HQJLQH RLOV DOVR H[FHHG WKH OLPLWV RI &DW
(&) VSHFLILFDWLRQV &DW '(28/6 DQG &DW '(2 DUH
ULJRURXVO\ WHVWHG ZLWK IXOOVFDOH SURSULHWDU\ &DW
HQJLQH WHVWV WR HQVXUH RSWLPDO SURWHFWLRQ RI &DW
GLHVHO HQJLQHV 7KH WHVWV LQFOXGH WKH IROORZLQJ
VWLFNLQJ RI WKH SLVWRQ ULQJV SLVWRQ GHSRVLWV RLO FRQWURO
WHVWV ZHDU WHVWV DQG VRRW WHVWV 3URSULHWDU\ WHVWV KHOS
HQVXUH WKDW &DW RLOV SURYLGH VXSHULRU SHUIRUPDQFH LQ
&DW GLHVHO HQJLQHV
7KHUH DUH VLJQLILFDQW YDULDWLRQV LQ WKH TXDOLW\ DQG
SHUIRUPDQFH RI FRPPHUFLDOO\ DYDLODEOH RLOV )RU WKLV
UHDVRQ &DW UHFRPPHQGV WKH &DW RLOV OLVWHG LQ 7DEOH
DQG WKH UHFRPPHQGDWLRQV LQ 7DEOH &DW '(28/6 PXOWLJUDGH DQG &DW '(2 PXOWLJUDGH
DQG VLQJOH JUDGH RLOV DUH IRUPXODWHG ZLWK WKH FRUUHFW
DPRXQWV DQG FKHPLVWU\ RI YDULRXV DGGLWLYHV LQFOXGLQJ
GHWHUJHQWV GLVSHUVDQWV DQWLR[LGDQWV DONDOLQLW\
DQWLIRDP YLVFRVLW\ PRGLILHUV DQG RWKHUV LQ RUGHU WR
SURYLGH VXSHULRU SHUIRUPDQFH LQ &DW GLHVHO HQJLQHV
ZKHUH UHFRPPHQGHG IRU XVH
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
&DW '(28/6 $3, &- PXOWLJUDGH LV FRPSDWLEOH
IRU XVH LQ HQJLQHV HTXLSSHG ZLWK DIWHUWUHDWPHQW
GHYLFHV
8VH DSSURSULDWH OXEULFDWLQJ RLOV WKDW DUH FRPSDWLEOH
ZLWK WKH HQJLQH FHUWLILFDWLRQ DQG DIWHUWUHDWPHQW
V\VWHP DQG ZLWK WKH IXHO VXOIXU OHYHOV 5HIHU WR WKH RLO
UHFRPPHQGDWLRQV IRU 7LHU HQJLQHV LQ WKLV FKDSWHU
DQG WR 'LHVHO )XHO 6XOIXU ,PSDFWV DUWLFOH RI WKLV )XHOV
6SHFLILFDWLRQV VHFWLRQ DQG WR WKH /XEULFDQWV
6SHFLILFDWLRQV VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
&DW GLHVHO HQJLQH RLOV H[FHHG PDQ\ RI WKH
SHUIRUPDQFH UHTXLUHPHQWV RI RWKHU PDQXIDFWXUHUV RI
GLHVHO HQJLQHV 7KHUHIRUH WKHVH RLOV DUH H[FHOOHQW
FKRLFHV IRU PDQ\ PL[HG IOHHWV 5HIHU WR \RXU HQJLQH
PDQXIDFWXUHU OLWHUDWXUH IRU WKH UHFRPPHQGHG
FDWHJRULHVVSHFLILFDWLRQV &RPSDUH WKH FDWHJRULHV
VSHFLILFDWLRQV WR WKH VSHFLILFDWLRQV RI &DW GLHVHO
HQJLQH RLOV 7KH FXUUHQW LQGXVWU\ VWDQGDUGV IRU &DW
GLHVHO HQJLQH RLOV DUH OLVWHG RQ WKH SURGXFW ODEHOV
$OVR UHIHU WR WKH GDWDVKHHWV IRU WKH SURGXFW
1RWH $3, RLO FDWHJRULHV &* LV REVROHWH 7KH $3,
$PHULFDQ 3HWUROHXP ,QVWLWXWH GRHV QRW OLFHQVH WKLV
FDWHJRU\ HIIHFWLYH $XJXVW 2LOV WKDW FODLP $3,
&* DUH QRW UHFRPPHQGHG IRU &DW HQJLQHV
1RWH $3, RLO FDWHJRU\ &) LV REVROHWH 7KH $3,
$PHULFDQ 3HWUROHXP ,QVWLWXWH GRHV QRW OLFHQVH WKLV
FDWHJRU\ HIIHFWLYH HQG RI $3, GRHV QRW YDOLGDWH
WKH TXDOLW\ RI $3, &) RLOV DQG GRHV QRW DOORZ WKH
GLVSOD\ RI $3, V\PERO DOVR FDOOHG $3, GRXJKQXW ZLWK
&) DV KLJKHVW FODLP RQ WKH RLO FRQWDLQHU 6LQJOH JUDGH
RLOV WKDW XVHG WR FRQIRUP WR WKH UHTXLUHPHQWV RI $3,
&) FDWHJRU\ DQG WKDW GR QRW KDYH D PRGLILHG
IRUPXODWLRQ DQG WKDW KDYH SDVVHG WKH ILHOG YDOLGDWLRQ
WHVW DUH DFFHSWDEOH IRU XVH LQ &DW HQJLQHV DV
GHWDLOHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ
(PLVVLRQ FRQWURO IRU WKH & PDULQH HQJLQHV IRU
(3$ 0DULQH 7LHU LQFOXGHV LPSURYHG FRPEXVWLRQ
V\VWHPV DQG DIWHUWUHDWPHQW VWDUWLQJ LQ 7KH
DIWHUWUHDWPHQW LV D 6HOHFWLYH &DWDO\WLF 5HGXFWLRQ
V\VWHP 6&5 ,Q WKH 6&5 V\VWHP 'LHVHO ([KDXVW
)OXLG '() LV LQMHFWHG LQ FRQWUROOHG DPRXQWV LQWR WKH
HQJLQH H[KDXVW VWUHDP LQ RUGHU WR UHGXFH 12[ LQ WKH
SUHVHQFH RI WKH 6&5 FDWDO\VW '() LV DYDLODEOH LQ
PDQ\ EUDQGV LQFOXGLQJ WKRVH EUDQGV WKDW FDUU\ WKH
$G%OXH RU $3, FHUWLILFDWLRQ '() LV DOVR JHQHULFDOO\
UHIHUUHG WR DV XUHD 7KH 6&5 V\VWHP LV DOVR HIIHFWLYH
LQ UHGXFLQJ FHUWDLQ K\GURFDUERQ DQG SDUWLFXODWH
HPLVVLRQV
6RPH & PDULQH HQJLQHV IRU XVH RXWVLGH RI WKH
8QLWHG 6WDWHV DUH DOVR HTXLSSHG ZLWK 6&5
DIWHUWUHDWPHQW V\VWHPV 7KLV LQFOXGHV & HQJLQHV
IRU YHVVHOV VXEMHFW WR WKH ,QWHUQDWLRQDO 0DULWLPH
2UJDQL]DWLRQ 0$532/ $QQH[ 9, UHJXODWLRQV
$GGLWLYHV XVHG LQ OXEULFDWLQJ RLOV FDQ QHJDWLYHO\ DIIHFW
WKH SHUIRUPDQFH RI WKH 6&5 DIWHUWUHDWPHQW V\VWHP ,Q
RUGHU WR PDLQWDLQ WKH H[SHFWHG DIWHUWUHDWPHQW GHYLFH
OLIH SHUIRUPDQFH DQG VHUYLFH LQWHUYDOV HQJLQH RLOV IRU
XVH LQ & HQJLQHV WKDW DUH HTXLSSHG ZLWK 6&5
DIWHUWUHDWPHQW V\VWHPV PXVW KDYH WKH IROORZLQJ
FKHPLFDO OLPLWV
SHUFHQW PD[LPXP SKRVSKRURXV
SHUFHQW PD[LPXP VXOIDWHG DVK
SHUFHQW PD[LPXP VXOIXU
7DEOH OLVWV WKH RLOV WKDW PHHW WKH UHTXLUHG FKHPLFDO
OLPLWV DQG DUH UHFRPPHQGHG IRU & HQJLQHV ZLWK
6&5 DIWHUWUHDWPHQW RLOV
7DEOH (QJLQH RLOV 5HFRPPHQGDWLRQV IRU & PDULQH HQJLQHV
HTXLSSHG ZLWK 6&5 DIWHUWUHDWPHQW V\VWHPV 5HFRPPHQGDWLRQ IRU 7LHU (QJLQHV
& PDULQH HQJLQHV IRU XVH LQ 86 IODJJHG YHVVHOV
DQG IRU YHVVHOV RSHUDWLQJ LQ 86 LQODQG ZDWHUZD\V
PXVW PHHW WKH (QYLURQPHQWDO 3URWHFWLRQ $JHQF\
(3$ HPLVVLRQ VWDQGDUGV VHW IRUWK LQ ³ &)5 3DUW
&RQWURO RI (PLVVLRQV IURP 1HZ DQG ,Q8VH
0DULQH &RPSUHVVLRQ,JQLWLRQ (QJLQHV DQG 9HVVHOV´
1HZ & HQJLQHV WKDW DUH JUHDWHU WKDQ EN:
PXVW PHHW (3$ 7LHU HPLVVLRQ VWDQGDUGV VWDUWLQJ LQ
7KHVH VWDQGDUGV DUH UHIHUUHG WR DV (3$ 0DULQH
7LHU LQ WKLV 6SHFLDO 3XEOLFDWLRQ
9LVFRVLW\ *UDGH
6SHFLILFDWLRQ
5HTXLUHPHQWV
&DW '(2 PRQR
JUDGH
6$( $3, &) &DW '(28/6
PXOWLJUDGH
6$( :
$3, &-
6$( :
)LHOG 3HUIRUPDQFH
(YDOXDWLRQ DQG $3,
&-&DW (&)
$&($ (
6$( 6$( )LHOG 3HUIRUPDQFH
(YDOXDWLRQ DQG $3,
&) &RPPHUFLDO
OXEULFDQWV
2LOV OLVWHG LQ WKLV WDEOH PXVW KDYH WKH FKHPLFDO OLPLWV OLVWHG LQ WKLV
VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
&DWHUSLOODU HQJLQH RLOV DUH WKH SUHIHUUHG RLOV &RPPHUFLDO RLOV DV
D JURXS DUH VHFRQG FKRLFH RLOV
2LOV WKDW IXOILOO DOO WKH $3, &) UHTXLUHPHQWV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
1RWH 2LOV WKDW GR QRW PHHW WKH FKHPLFDO OLPLWV JLYHQ
LQ WKLV VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ DUH QRW
DOORZHG IRU XVH LQ HQJLQHV WKDW DUH HTXLSSHG ZLWK
6&5 DIWHUWUHDWPHQW V\VWHPV )ROORZ WKH
UHFRPPHQGDWLRQV JLYHQ LQ 7DEOH DERYH
&RPPHUFLDO RLOV PHHWLQJ &DW (&) $3, &- DQG
$&($ ( VSHFLILFDWLRQV DOVR PHHW WKH UHTXLUHG
FKHPLFDO OLPLWV IRU HQJLQHV WKDW DUH HTXLSSHG ZLWK
6&5 DIWHUWUHDWPHQW V\VWHP $&($ ( RLOV DUH
YDOLGDWHG XVLQJ VRPH EXW QRW DOO (&) DQG $3, &-
VWDQGDUG HQJLQH SHUIRUPDQFH WHVWV &RQVXOW \RXU RLO
VXSSOLHU ZKHQ FRQVLGHULQJ XVH RI DQ RLO WKDW LV QRW &DW
(&) RU $3, &- TXDOLILHG
1RWH &RPPHUFLDO RLOV WKDW PHHW WKH FKHPLFDO OLPLWV
DERYH VKRXOG DOVR KDYH D ILHOG SURRI RI SHUIRUPDQFH
LQ RUGHU WR EH XVHG LQ & HQJLQHV )LHOG 3URRI RI
3HUIRUPDQFH HQVXUHV WKDW WKH RLO SHUIRUPV
DGHTXDWHO\ LQ & DQG HQJLQHV 5HIHU WR WKLV
6SHFLDO 3XEOLFDWLRQ ³)LHOG (YDOXDWLRQ RI &RPPHUFLDO
2LO´IRU GHWDLOV
127,&(
'R QRW DGG QHZ HQJLQH RLO ZDVWH HQJLQH RLO RU DQ\ RLO
SURGXFW WR WKH IXHO XQOHVV WKH HQJLQH LV GHVLJQHG DQG
FHUWLILHG WR EXUQ GLHVHO HQJLQH RLO IRU H[DPSOH &DWHU
SLOODU 256 GHVLJQHG IRU ODUJH HQJLQHV &DWHUSLOODU H[
SHULHQFH KDV VKRZQ WKDW DGGLQJ RLO SURGXFWV WR 7LHU HQJLQH IXHOV 8 6 (3$ 7LHU FHUWLILHG WR (XUR ,9
6WDJH ,9 FHUWLILHG HQJLQH IXHOV RU WR WKH IXHOV RI HQ
JLQHV HTXLSSHG ZLWK H[KDXVW DIWHUWUHDWPHQW GHYLFHV
ZLOO JHQHUDOO\ FDXVH WKH QHHG IRU PRUH IUHTXHQW DVK
VHUYLFH LQWHUYDOV DQGRU FDXVH ORVV RI SHUIRUPDQFH
$GGLQJ RLO SURGXFWV WR WKH IXHO PD\ UDLVH WKH VXOIXU
OHYHO RI WKH IXHO DQG PD\ FDXVH IRXOLQJ RI WKH IXHO V\V
WHP DQG ORVV RI SHUIRUPDQFH
6HOHFWLQJ D &RPPHUFLDO 2LO
/XEULFDWLRQ RLO IRU DQG & 6HULHV GLHVHO
HQJLQHV PXVW KDYH SURRI RI SHUIRUPDQFH LQ WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ 7KH 7%1 DQG WKH YLVFRVLW\
RI WKH RLO DUH DOVR LPSRUWDQW IDFWRUV
127,&(
7KH )LHOG 3HUIRUPDQFH (YDOXDWLRQ LV UHTXLUHG
)LHOG 3HUIRUPDQFH ± 7KH OXEULFDWLRQ RLO PXVW
GHPRQVWUDWH DFFHSWDEOH SHUIRUPDQFH XQGHU
FRQWUROOHG RSHUDWLQJ FRQGLWLRQV IRU D PLQLPXP RI KRXUV LQ D RU & 6HULHVGLHVHO HQJLQH )RU WKH
HYDOXDWLRQ RI D SDUWLFXODU RLO WKH RLO FRPSDQ\ VKRXOG
DUUDQJH D ILHOG WHVW ZLWK WKH RZQHU RI WKH HQJLQH )RU D
FRPSOHWH H[SODQDWLRQ RI ILHOG HYDOXDWLRQ IRU DQG
& 6HULHVGLHVHO HQJLQH RLO VHH WKLV 6XSSOHPHQW
³)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO´ WRSLF
7KH &DWHUSLOODU 0LFUR2[LGDWLRQ 7HVW LV
UHFRPPHQGHG DV D SUHVFUHHQLQJ PHWKRG WR TXDOLI\
RLOV IRU )LHOG 3HUIRUPDQFH (YDOXDWLRQ
1RWH 3DVVLQJ WKH &DW 0LFUR2[LGDWLRQ 7HVW GRHV
127 JXDUDQWHH SDVVLQJ WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ UHTXLUHPHQWV EXW RLOV WKDW GR QRW SDVV WKH
&DW 0LFUR2[LGDWLRQ 7HVW ZLOO OLNHO\ IDLO WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ
&DWHUSLOODU 0LFUR2[LGDWLRQ 7HVW ± 7KH RLO PXVW
GHPRQVWUDWH D PLQLPXP LQGXFWLRQ WLPH RI PLQXWHV
LQ WKH WHVW 7KH WHVW PHDVXUHV WKH R[LGDWLRQ VWDELOLW\ RI
HQJLQH RLO DW & ) 7KH UHVXOWV RI WKH WHVW
KDYH EHHQ FRUUHODWHG WR OHYHOV RI SLVWRQ GHSRVLWV 7KH
SLVWRQ GHSRVLWV KDYH EHHQ PHDVXUHG LQ &DWHUSLOODU
WHVWV IRU HYDOXDWLQJ RLO (QJLQH RLOV WKDW KDYH DQ
LQGXFWLRQ WLPH OHVV WKDQ PLQXWHV KDYH SURGXFHG
H[FHVVLYH SLVWRQ GHSRVLWV 7KH H[FHVVLYH GHSRVLWV
KDYH RFFXUUHG LQ ODERUDWRU\ WHVWLQJ DQG LQ DFWXDO ILHOG
RSHUDWLRQ 7KH PLFURR[LGDWLRQ WHVW LV RQO\ RQH SDUW RI
WKH FULWHULD IRU WKH VHOHFWLRQ RI D OXEULFDWLRQ RLO
7KH PLFURR[LGDWLRQ WHVW FDQ EH FRQGXFWHG DW
&DWHUSLOODU RU DW D UHSXWDEOH WHVW IDFLOLW\ )RU WHVWLQJ DW
&DWHUSLOODU FRQVXOW \RXU ORFDO &DW GHDOHU RU &DW
FXVWRPHU VXSSRUW OLQHV
1RWH $ KLJK LQGXFWLRQ WLPH IRU WKH WHVW GRHV QRW
HQVXUH WKDW WKH RLO SHUIRUPDQFH LV DGHTXDWH IRU DQG & 6HULHV GLHVHO HQJLQHV D )LHOG 3HUIRUPDQFH
(YDOXDWLRQ LV VWLOO UHTXLUHG
127,&(
)DLOXUH WR IROORZ WKHVH RLO UHFRPPHQGDWLRQV FDQ
FDXVH VKRUWHQHG HQJLQH VHUYLFH OLIH GXH WR GHSRVLWV
DQGRU H[FHVVLYH ZHDU
/XEULFDQW 5HFRPPHQGDWLRQV IRU
(QJLQHV WKDW 8VH +HDY\ )XHO 2LO
+)2
127,&(
+HDY\ )XHO 2LOV VKRXOG QRW EH XVHG LQ DQG
& 6HULHV HQJLQHV WKDW KDYH DIWHUWUHDWPHQW GHYLFHV
DQG WKDW DUH 7LHU (3$ FHUWLILHG
)RU 6HULHVGLHVHO HQJLQHV WKDW XVH KHDY\ IXHO RLO
VHOHFW D OXEULFDWLRQ RLO WKDW LV EOHQGHG IRU XVH ZLWK
KHDY\ IXHO RLO 7KHVH RLOV DUH EOHQGHG IRU XVH LQ
FHQWULIXJHV 7KH RLOV PXVW UHOHDVH ZDWHU DQG
FRQWDPLQDQWV LQ WKH FHQWULIXJHV ZLWKRXW ORVLQJ
DGGLWLYHV
7KH RLOV PXVW KDYH WKH SURRI RI SHUIRUPDQFH WKDW LV
H[SODLQHG LQ WKH ³6HOHFWLQJ D &RPPHUFLDO 2LO´ WRSLF
1RWH &XUUHQWO\ &DW GRHV QRW VHOO D EUDQG RI
OXEULFDWLRQ RLO IRU XVH LQ HQJLQHV WKDW RSHUDWH ZLWK
KHDY\ IXHO RLO &RQVXOW \RXU RLO FRPSDQ\ DQGRU \RXU
&DW GHDOHU IRU DVVLVWDQFH
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
7RWDO %DVH 1XPEHU 7%1 DQG )XHO
6XOIXU /HYHOV IRU &DW 6HULHV
DQG & 6HULHV 'LHVHO (QJLQHV
7KDW 8VH 'LVWLOODWH )XHO RU %LRGLHVHO
7KLV DUWLFOH SURYLGHV LQIRUPDWLRQ IRU 'LUHFW ,QMHFWLRQ
', 'LHVHO (QJLQHV 3UHFRPEXVWLRQ &KDPEHU 3&
(QJLQHV DQG 'LUHFW ,QMHFWLRQ ', DQG 0DULQH 'LHVHO (QJLQHV
7KH XVH RI &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV
UHFRPPHQGHG IRU GHWHUPLQLQJ RLO OLIH
7%1 LV DOVR FRPPRQO\ UHIHUUHG WR DV %DVH 1XPEHU
%1 7KH PLQLPXP UHTXLUHG 7RWDO %DVH 1XPEHU 7%1 IRU
RLO GHSHQGV RQ WKH IXHO VXOIXU OHYHO )RU FRPPHUFLDO
GLHVHO HQJLQHV WKDW XVH GLVWLOODWH IXHO WKH IROORZLQJ
JXLGHOLQHV DSSO\
7DEOH 7%1 UHFRPPHQGDWLRQV IRU DQG & 6HULHV &DW HQJLQHV WKDW XVH GLVWLOODWH IXHO RU ELRGLHVHO IXHO
)XHO 6XOIXU /HYHO SHUFHQW SSP
&DW (QJLQH 2LOV
SHUFHQW SSP
! SHUFHQW ! SSP
$ERYH SHUFHQW DERYH SSP
7%1 RI &RPPHUFLDO (QJLQH 2LOV
&DW '(28/6
&DW '(2
0LQ &DW '(2
&DW '(28/6
0LQ &DW '(2
0LQ &DW '(28/6 DSSOLHV WR &DW '(28/6 6$( : 6$(: &DW '(28/6 6<1 6$( : DQG &DW '(2 &ROG :HDWKHU 6$(
: &DW '(2 DSSOLHV WR &DW '(2 6$( : DQG 6$( :
8VH RI DQ RLO DQDO\VLV SURJUDP WR GHWHUPLQH RLO GUDLQ LQWHUYDOV LV VWURQJO\ UHFRPPHQGHG LI IXHO VXOIXU LV EHWZHHQ SSP DQG SSP 8VH RI DQ RLO DQDO\VLV SURJUDP WR GHWHUPLQH RLO GUDLQ LQWHUYDOV LV UHTXLUHG LI IXHO VXOIXU LV DERYH SSP )RU IXHOV RI VXOIXU OHYHOV WKDW H[FHHG SHUFHQW SSP UHIHU WR 7%1 DQG HQJLQH RLO JXLGHOLQHV JLYHQ LQ WKLV VHFWLRQ
&DW '(28/6 PD\ EH XVHG LI DQ RLO DQDO\VLV SURJUDP LV IROORZHG +LJK IXHO VXOIXU OHYHOV PD\ UHGXFH WKH RLO GUDLQ LQWHUYDOV
)RU UHJLRQV LQ WKH ZRUOG ZKHUH IXHOV RI KLJK VXOIXU WKDW
H[FHHG SHUFHQW SSP PJNJ DUH
DYDLODEOH DQG DOORZHG IRU XVH E\ ODZ XVH WKH
IROORZLQJ JXLGHOLQHV
&KRRVH PXOWLJUDGH RLO ZLWK WKH KLJKHVW 7%1 WKDW
PHHWV RQH RI WKHVH VSHFLILFDWLRQV &DW (&)D
&DW (&) RU &DW (&)
5HGXFH WKH RLO FKDQJH LQWHUYDO %DVH WKH RLO
FKDQJH LQWHUYDO RQ WKH RLO DQDO\VLV (QVXUH WKDW WKH
RLO DQDO\VLV LQFOXGHV WKH FRQGLWLRQ RI WKH RLO DQG D
ZHDU PHWDO DQDO\VLV &DW 6ā2ā6 6HUYLFHV RLO
DQDO\VLV LV UHTXLUHG
7%1 WHVWLQJ LV DQ RSWLRQDO SDUW RI WKH 626 6HUYLFHV
RLO DQDO\VLV SURJUDP 7%1 WHVWLQJ PD\ EH GRQH LQ
DGGLWLRQ WR WKH VWDQGDUG 626 6HUYLFHV WHVWV IRU RLO
GHWHULRUDWLRQ ,Q PRVW DSSOLFDWLRQV WKH 626 6HUYLFHV
WHVWV IRU R[LGDWLRQ VXOIDWLRQ YLVFRVLW\ DQG ZHDU ZLOO
LGHQWLI\ RLO GHWHULRUDWLRQ
7%1 RI WKH RLO LV W\SLFDOO\ PHDVXUHG XVLQJ ³$670
'´ DQGRU ³$670 '´ WHVW PHWKRGV %RWK
PHWKRGV FDQ EH XVHG WR PHDVXUH WKH 7%1 RI XVHG
RLOV +RZHYHU ³$670 '´ LV WKH SUHIHUUHG
PHWKRG IRU XVHG RLOV
&RQVLGHU FKDQJLQJ WKH RLO LI WKH ³$670 '´
WHVW UHVXOW UHDFKHV 7%1 /RRN IRU RWKHU VLJQV RI
RLO GHWHULRUDWLRQ RU DEQRUPDO ZHDU WR YHULI\ WKH
QHHG WR FKDQJH RLO
&RQVLGHU FKDQJLQJ WKH RLO LI WKH ³$670 '´
WHVW UHVXOW UHDFKHV 7%1 /RRN IRU RWKHU VLJQV RI
RLO GHWHULRUDWLRQ RU DEQRUPDO ZHDU WR YHULI\ WKH
QHHG WR FKDQJH RLO
%H DZDUH WKDW ERWK RI WKHVH WHVW PHWKRGV KDYH
YDULDELOLW\ RI DSSUR[LPDWHO\ 7%1 &DUH VKRXOG
EH WDNHQ ZKHQ DQDO\]LQJ WKH UHVXOWV RI WKH 7%1
WHVW &RQVXOW D WUDLQHG 6ā2ā6 6HUYLFHV DQDO\VW
ZKHQ PDNLQJ RLO GUDLQ GHFLVLRQV EDVHG RQ RLO
VDPSOH UHVXOWV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
1RWH 7KH XVH RI &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV
KHOSV HQYLURQPHQWDO VXVWDLQDELOLW\ DV WKH EHVW ZD\ WR
RSWLPL]H RLO OLIH 7KH VHUYLFH ZLOO KHOS HQJLQHV UHDFK
WKH H[SHFWHG OLIH &RQVXOW \RXU &DW GHDOHU UHJDUGLQJ
WKH WHVWLQJ UHTXLUHG WR HVWDEOLVK D VDIH RSWLPL]HG RLO
GUDLQ LQWHUYDO
,Q RUGHU WR KHOS SURWHFW \RXU HQJLQH DQG RSWLPL]H
RLO GUDLQ LQWHUYDOV IRU HQJLQH DSSOLFDWLRQV DQG
GXW\ F\FOHV XVH &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV
DV IROORZV
5HFRPPHQGHG DV D PDWWHU RI FRXUVH
5HFRPPHQGHG LQ RUGHU WR GHWHUPLQH RLO GUDLQ
LQWHUYDOV ZKHQ RSHUDWLQJ RQ IXHO ZLWK VXOIXU OHYHOV
EHWZHHQ SSP DQG SSP
127,&(
'HSHQGLQJ RQ DSSOLFDWLRQ VHYHULW\ DQG ORFDOL]HG HQYL
URQPHQWDO FRQGLWLRQV DQG DOVR GHSHQGLQJ RQ PDLQWH
QDQFH SUDFWLFHV RSHUDWLQJ 'LUHFW ,QMHFWLRQ ', GLHVHO
HQJLQHV DQG RSHUDWLQJ 3& 3UHFRPEXVWLRQ &KDPEHU
GLHVHO HQJLQHV RQ IXHO ZLWK VXOIXU OHYHOV RYHU SHU
FHQW SSP PD\ UHTXLUH VLJQLILFDQWO\ VKRUWHQHG
RLO FKDQJH LQWHUYDOV LQ RUGHU WR KHOS PDLQWDLQ DG
HTXDWH ZHDU SURWHFWLRQ 5HIHU WR WKLV 6SHFLDO 3XEOLFD
WLRQ ³)XHO 6SHFLILFDWLRQV´ VHFWLRQ ³'LHVHO )XHO 6XOIXU´
WRSLF IRU DGGLWLRQDO LQIRUPDWLRQ
1RWH 'R 127 XVH RQO\ WKLV 6SHFLDO 3XEOLFDWLRQ DV
D EDVLV IRU GHWHUPLQLQJ RLO GUDLQ LQWHUYDOV
1RWH (QJLQH RSHUDWLQJ FRQGLWLRQV SOD\ D NH\ UROH LQ
GHWHUPLQLQJ WKH HIIHFW WKDW IXHO VXOIXU ZLOO KDYH RQ
HQJLQH GHSRVLWV DQG RQ HQJLQH ZHDU &RQVXOW \RXU
&DW GHDOHU IRU JXLGDQFH ZKHQ IXHO VXOIXU OHYHOV DUH
DERYH SSP 7KLV 6SHFLDO 3XEOLFDWLRQ GRHV QRW DGGUHVV
UHFRPPHQGHG RLO GUDLQ LQWHUYDOV EXW UDWKHU SURYLGHV
JXLGDQFH WKDW VKRXOG EH XVHG ZLWK \RXU VSHFLILF
HQJLQHPDFKLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDOV
LQ GHWHUPLQLQJ DFFHSWDEOH RLO GUDLQ LQWHUYDOV &RQVXOW
\RXU HQJLQHPDFKLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDOV DQG FRQVXOW \RXU &DW GHDOHU IRU DGGLWLRQDO
JXLGDQFH LQFOXGLQJ EXW QRW OLPLWHG WR JXLGDQFH RQ
HVWDEOLVKLQJ RSWLPL]HG DQGRU DFFHSWDEOH RLO GUDLQ
LQWHUYDOV
([FHVVLYH SLVWRQ GHSRVLWV FDQ EH SURGXFHG E\ RLO
ZLWK D KLJK 7%1 DQGRU KLJK DVK 7KHVH GHSRVLWV FDQ
OHDG WR D ORVV RI FRQWURO RI WKH RLO FRQVXPSWLRQ DQG WR
WKH SROLVKLQJ RI WKH F\OLQGHU ERUH
7RWDO %DVH 1XPEHU 7%1 DQG )XHO
6XOIXU /HYHOV IRU (QJLQHV 7KDW 8VH
+HDY\ )XHO 2LO +)2
7KHUH DUH PDQ\ IDFWRUV WKDW FRQWULEXWH WR UDSLG 7%1
GHSOHWLRQ D QRW DOO LQFOXVLYH OLVW IROORZV
1RWH 2QO\ VSHFLDOO\ FRQILJXUHG GLHVHO HQJLQHV
FDQ XVH +)2
+LJK VXOIXU IXHO 7KH PRUH IXHO VXOIXU WKH PRUH
UDSLG WKH 7%1 GHSOHWLRQ
7KH XVH RI &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV
UHFRPPHQGHG IRU GHWHUPLQLQJ RLO OLIH
)DXOW\ HQJLQH FRRODQW UHJXODWRUV
7%1 LV DOVR FRPPRQO\ UHIHUUHG WR DV %DVH 1XPEHU
%1 5HTXLUHG LQ RUGHU WR GHWHUPLQH RLO GUDLQ LQWHUYDOV
ZKHQ RSHUDWLQJ RQ IXHO ZLWK VXOIXU OHYHOV WKDW DUH
DERYH SSP
/LJKW ORDGV
6KRUW RSHUDWLRQ F\FOHV
([FHVVLYH LGOLQJ
2SHUDWLQJ LQ DSSOLFDWLRQV ZKHUH QRUPDO RSHUDWLQJ
WHPSHUDWXUH LV VHOGRP UHDFKHG
+LJK KXPLGLW\ DOORZLQJ H[FHVVLYH FRQGHQVDWLRQ
%XOOHWV WKURXJK DERYH FDQ FRQWULEXWH WR H[FHVVLYH
ZDWHU LQ WKH FUDQNFDVH RLO 7KH ZDWHU FRPELQHV ZLWK
DYDLODEOH VXOIXU WR IRUP VXOIXULF DFLG 1HXWUDOL]LQJ
DFLGV WKDW DUH IRUPHG FRQWULEXWH WR UDSLG 7%1
GHSOHWLRQ
*HQHUDOO\ OXEULFDWLRQ RLOV IRU HQJLQHV WKDW XVH KHDY\
IXHO RLO DUH DYDLODEOH ZLWK D 7%1 LQ D UDQJH RI WR ³$670 '´ 2LO FRPSDQLHV OLVW WKHVH RLOV WKDW
KDYH D KLJK 7%1 DV RLOV IRU ³WUXQN SLVWRQ´ RU ³PHGLXP
VSHHG PDULQH´ GLHVHO HQJLQHV 0RVW RI WKH &DWHUSLOODU
H[SHULHQFH LV ZLWK WKH RLOV WKDW KDYH D 7%1 RI RU
7KH 7%1 IRU D QHZ RLO GHSHQGV RQ WKH IXHO VXOIXU
OHYHO
7KH 7%1 IRU D QHZ RLO GHSHQGV RQ WKH IXHO VXOIXU
OHYHO )RU 6HULHV HQJLQHV WKDW XVH KHDY\ IXHO RLO
WKH PLQLPXP QHZ RLO 7%1 PXVW EH DV GHWHUPLQHG
E\ WKH ³$670 '´ SURFHGXUH
(QJLQH RLOV RI KLJK 7%1 FDQ QHXWUDOL]H WKH VXOIXU LQ
WKH IXHO DQG DOORZ IRU ORQJ GUDLQ LQWHUYDO +RZHYHU RLOV
ZLWK D KLJK 7%1 DQGRU KLJK DVK FDQ SURGXFH
H[FHVVLYH GHSRVLWV RQ WKH SLVWRQV DQG YDOYHV 7KHVH
GHSRVLWV FDQ OHDG WR WKH IROORZLQJ UHVXOWV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
$ ORVV RI VWDEOH RLO FRQWURO
3ROLVKLQJ RI WKH F\OLQGHU ERUH
*XWWHULQJ RI WKH YDOYHV
+LJK TXDOLW\ HQJLQH RLOV WKDW DUH IRUPXODWHG IRU
RSHUDWLRQ XVLQJ +)2 DUH EDODQFHG WR DOORZ WKH
GHVLUHG RLO GUDLQ LQWHUYDOV ZKLOH SURWHFWLQJ HQJLQHV
IURP H[FHVVLYH GHSRVLWV 7KH RLO PXVW DOVR KDYH WKH
SURRI RI SHUIRUPDQFH WKDW LV H[SODLQHG LQ WKH
6HOHFWLQJ D &RPPHUFLDO 2LO DUWLFOH
8VH WKH IROORZLQJ JXLGHOLQHV IRU IXHO VXOIXU OHYHOV WKDW
H[FHHG SHUFHQW
&KRRVH DQ RLO ZLWK WKH KLJKHVW 7%1 WKDW PHHWV WKH
&DWHUSLOODU SHUIRUPDQFH UHTXLUHPHQWV
%DVH WKH RLO FKDQJH LQWHUYDO RQ WKH RLO DQDO\VLV
(QVXUH WKDW WKH RLO DQDO\VLV LQFOXGHV WKH FRQGLWLRQ
RI WKH RLO 7%1 DQG D ZHDU PHWDO DQDO\VLV 5HGXFH
WKH RLO FKDQJH LQWHUYDO LI QHFHVVDU\
7%1 WHVWLQJ LV DQ RSWLRQDO SDUW RI WKH 6ā2ā6 6HUYLFHV
RLO DQDO\VLV SURJUDP 7%1 WHVWLQJ PD\ EH GRQH LQ
DGGLWLRQ WR WKH VWDQGDUG 6ā2ā6 6HUYLFHV WHVWV IRU RLO
GHWHULRUDWLRQ ,Q PRVW DSSOLFDWLRQV WKH 6ā2ā6
6HUYLFHV WHVWV IRU R[LGDWLRQ VXOIDWLRQ YLVFRVLW\ DQG
ZHDU ZLOO LGHQWLI\ RLO GHWHULRUDWLRQ
7%1 RI WKH RLO LV W\SLFDOO\ PHDVXUHG XVLQJ ³$670
'´ DQGRU ³$670 '´ WHVW PHWKRGV %RWK
PHWKRGV FDQ EH XVHG WR PHDVXUH WKH 7%1 RI XVHG
RLOV +RZHYHU ³$670 '´ LV WKH SUHIHUUHG
PHWKRG IRU XVHG RLOV
&RQVLGHU FKDQJLQJ WKH RLO LI WKH ³$670 '´
WHVW UHVXOW UHDFKHV 7%1 /RRN IRU RWKHU VLJQV RI
RLO GHWHULRUDWLRQ RU DEQRUPDO ZHDU WR YHULI\ WKH
QHHG WR FKDQJH RLO
+LJK VXOIXU IXHO 7KH PRUH IXHO VXOIXU WKH PRUH
UDSLG WKH 7%1 GHSOHWLRQ
)DXOW\ HQJLQH FRRODQW UHJXODWRUV
/LJKW ORDGV
6KRUW RSHUDWLRQ F\FOHV
([FHVVLYH LGOLQJ
2SHUDWLQJ LQ DSSOLFDWLRQV ZKHUH QRUPDO RSHUDWLQJ
WHPSHUDWXUH LV VHOGRP UHDFKHG
+LJK KXPLGLW\ DOORZLQJ H[FHVVLYH FRQGHQVDWLRQ
%XOOHWV WKURXJK DERYH FDQ FRQWULEXWH WR H[FHVVLYH
ZDWHU LQ WKH FUDQNFDVH RLO 7KH ZDWHU FRPELQHV ZLWK
DYDLODEOH VXOIXU WR IRUP VXOIXULF DFLG 1HXWUDOL]LQJ
DFLGV WKDW DUH IRUPHG FRQWULEXWH WR UDSLG 7%1
GHSOHWLRQ
1RWH 'R 127 XVH RQO\ WKLV 6SHFLDO 3XEOLFDWLRQ DV D
EDVLV IRU GHWHUPLQLQJ RLO GUDLQ LQWHUYDOV
7KLV 6SHFLDO 3XEOLFDWLRQ GRHV QRW DGGUHVV
UHFRPPHQGHG RLO GUDLQ LQWHUYDOV EXW UDWKHU SURYLGHV
JXLGDQFH WKDW VKRXOG EH XVHG ZLWK \RXU VSHFLILF
HQJLQHPDFKLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
LQ GHWHUPLQLQJ DFFHSWDEOH RLO GUDLQ LQWHUYDOV &RQVXOW
\RXU HQJLQHPDFKLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO DQG FRQVXOW \RXU &DW GHDOHU IRU DGGLWLRQDO
JXLGDQFH LQFOXGLQJ EXW QRW OLPLWHG WR JXLGDQFH RQ
HVWDEOLVKLQJ RSWLPL]HG DQGRU DFFHSWDEOH RLO GUDLQ
LQWHUYDOV
6HYHUH $SSOLFDWLRQV
$Q HQJLQH ZKLFK RSHUDWHV RXWVLGH RI QRUPDO
FRQGLWLRQV LV RSHUDWLQJ LQ D VHYHUH VHUYLFH
DSSOLFDWLRQ
&RQVLGHU FKDQJLQJ WKH RLO LI WKH ³$670 '´
WHVW UHVXOW UHDFKHV 7%1 /RRN IRU RWKHU VLJQV RI
RLO GHWHULRUDWLRQ RU DEQRUPDO ZHDU WR YHULI\ WKH
QHHG WR FKDQJH RLO
$Q HQJLQH WKDW RSHUDWHV LQ D VHYHUH VHUYLFH
DSSOLFDWLRQ PD\ QHHG PRUH IUHTXHQW PDLQWHQDQFH
LQWHUYDOV LQ RUGHU WR PD[LPL]H WKH IROORZLQJ
FRQGLWLRQV
%H DZDUH WKDW ERWK RI WKHVH WHVW PHWKRGV KDYH
YDULDELOLW\ RI DSSUR[LPDWHO\ 7%1 &DUH VKRXOG
EH WDNHQ ZKHQ DQDO\]LQJ WKH UHVXOWV RI WKH 7%1
WHVW &RQVXOW D WUDLQHG 6ā2ā6 6HUYLFHV DQDO\VW
ZKHQ PDNLQJ RLO GUDLQ GHFLVLRQV EDVHG RQ RLO
VDPSOH UHVXOWV
5HOLDELOLW\
1RWH 7KH XVH RI &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV
KHOSV HQYLURQPHQWDO VXVWDLQDELOLW\ DV WKH EHVW ZD\ WR
RSWLPL]H RLO OLIH 7KH VHUYLFH ZLOO KHOS HQJLQHV UHDFK
WKH H[SHFWHG OLIH &RQVXOW \RXU &DW GHDOHU UHJDUGLQJ
WKH WHVWLQJ UHTXLUHG WR HVWDEOLVK D VDIH RSWLPL]HG RLO
GUDLQ LQWHUYDO
7KHUH DUH PDQ\ IDFWRUV WKDW FRQWULEXWH WR UDSLG 7%1
GHSOHWLRQ D QRW DOO LQFOXVLYH OLVW IROORZV
6HUYLFH OLIH
6HYHUH $SSOLFDWLRQV 5HTXLUH WKH 8VH RI +LJKHU
3HUIRUPLQJ 'LHVHO (QJLQH 2LOV ([DPSOHV RI VHYHUH
GXW\ DSSOLFDWLRQV LQFOXGH EXW QRW OLPLWHG WR WKH
IROORZLQJ
RSHUDWLQJ DW JUHDWHU WKDQ ORDG IDFWRU
RSHUDWLQJ LQ KLJK KXPLGLW\
RSHUDWLQJ ZLWK IXHO VXOIXU OHYHOV WKDW DUH DERYH
SSP
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
,Q RUGHU WR KHOS HQVXUH WKH PD[LPXP H[SHFWHG
FRPSDUWPHQW SHUIRUPDQFH DQG OLIH KLJKHU SHUIRUPLQJ
IOXLGV DV GHVFULEHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ PD\ EH
UHTXLUHG )OXLGV WKDW PHHW RQO\ WKH PLQLPXP
SHUIRUPDQFH OHYHOV PD\ EH DOORZHG IRU W\SLFDO
DSSOLFDWLRQV EXW PDLQWHQDQFH LQWHUYDOV PXVW EH
UHGXFHG )RU WKH PD[LPXP H[SHFWHG HQJLQH
FRPSDUWPHQW SHUIRUPDQFH DQG OLIH DQG ZKHUH /6' RU
8/6' IXHOV DUH DYDLODEOH RLOV PHHWLQJ WKH &DW (&)
VSHFLILFDWLRQ PXVW EH XVHG
6HYHUH 2SHUDWLQJ &RQGLWLRQV
7KH QXPEHU RI LQGLYLGXDO DSSOLFDWLRQV FDXVH WKH
LPSRVVLELOLW\ RI LGHQWLI\LQJ DOO RI WKH IDFWRUV ZKLFK PD\
FRQWULEXWH WR VHYHUH VHUYLFH RSHUDWLRQ &RQVXOW \RXU
&DW GHDOHU IRU WKH XQLTXH PDLQWHQDQFH WKDW PD\ EH
QHFHVVDU\ IRU \RXU HQJLQH
2SHUDWLRQ ZLWK D SOXJJHG IXHO ILOWHU
)UHTXHQW RSHUDWLRQ ZLWK LQOHW DLU ZKLFK KDV D
FRUURVLYH FRQWHQW
2SHUDWLRQ ZLWK LQOHW DLU ZKLFK KDV D FRPEXVWLEOH
FRQWHQW
2SHUDWLRQ ZKLFK LV RXWVLGH RI WKH LQWHQGHG
DSSOLFDWLRQ
([WHQGHG RSHUDWLRQ DW ORZ LGOH PRUH WKDQ RI
KRXUV
$Q DSSOLFDWLRQ LV D VHYHUH VHUYLFH DSSOLFDWLRQ LI DQ\ RI
WKH IROORZLQJ FRQGLWLRQV DSSO\
)UHTXHQW FROG VWDUWV DW WHPSHUDWXUHV EHORZ &
)
6HYHUH (QYLURQPHQWDO )DFWRUV
)UHTXHQW GU\ VWDUWV VWDUWLQJ DIWHU PRUH WKDQ KRXUV RI VKXWGRZQ
)UHTXHQW RSHUDWLRQ LQ GLUW\ DLU
)UHTXHQW RSHUDWLRQ DW DQ DOWLWXGH ZKLFK LV DERYH
P IW
)UHTXHQW RSHUDWLRQ LQ DPELHQW WHPSHUDWXUHV ZKLFK
DUH DERYH & )
)UHTXHQW RSHUDWLRQ LQ DPELHQW WHPSHUDWXUHV ZKLFK
DUH EHORZ & )
)UHTXHQW KRW VKXWGRZQV VKXWWLQJ GRZQ WKH HQJLQH
ZLWKRXW WKH PLQLPXP RI PLQXWHV WR PLQXWHV RI
FRRO GRZQ WLPH
2SHUDWLRQ DERYH WKH HQJLQH UDWHG VSHHG
2SHUDWLRQ EHORZ WKH SHDN WRUTXH VSHHG
2SHUDWLQJ ZLWK IXHO ZKLFK GRHV QRW PHHW WKH
VWDQGDUGV IRU GLVWLOODWH GLHVHO IXHO DV VWDWHG LQ
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&DW 6HULHV DQG & 6HULHV 'LHVHO (QJLQH )OXLGV
5HFRPPHQGDWLRQV´ ³'LVWLOODWH 'LHVHO )XHO´
2SHUDWLQJ ZLWK D EOHQG RI GLVWLOODWH IXHO ZKLFK
FRQWDLQV PRUH WKDQ SHUFHQW ELRGLHVHO
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
,PSURSHU 0DLQWHQDQFH 3URFHGXUHV
0DLQWHQDQFH 3URFHGXUHV :KLFK 0D\
&RQWULEXWH WR D 6HYHUH 6HUYLFH
$SSOLFDWLRQ
,QDGHTXDWH PDLQWHQDQFH RI IXHO VWRUDJH WDQNV IURP
FDXVHV VXFK DV H[FHVVLYH ZDWHU VHGLPHQW DQG
PLFURRUJDQLVP JURZWK
([WHQGLQJ PDLQWHQDQFH LQWHUYDOV EH\RQG WKH
UHFRPPHQGHG LQWHUYDOV
8VLQJ IOXLGV ZKLFK DUH QRW UHFRPPHQGHG LQ
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&DW 6HULHV DQG & 6HULHV 'LHVHO (QJLQH )OXLGV
5HFRPPHQGDWLRQV´
([WHQGLQJ PDLQWHQDQFH LQWHUYDOV IRU FKDQJLQJ WKH
HQJLQH RLO DQG HQJLQH FRRODQW ZLWKRXW 6ā2ā6
YDOLGDWLRQ
([WHQGLQJ PDLQWHQDQFH LQWHUYDOV IRU FKDQJLQJ DLU
ILOWHUV RLO ILOWHUV DQG IXHO ILOWHUV
1RWH 7KHVH )LHOG 3HUIRUPDQFH (YDOXDWLRQ
JXLGHOLQHV SURYLGH D ZD\ IRU RLO FRPSDQLHV WR ³VHOI
FHUWLI\´ RLO IRU XVH LQ &DW DQG & 6HULHV
GLHVHO HQJLQHV
1RWH 7KHVH JXLGHOLQHV DUH DSSOLFDEOH WR HQJLQHV WKDW
XVH GLVWLOODWH IXHO KHDY\ IXHO RLO FUXGH IXHO RLOV RU
ELRGLHVHO
1RWH $SSUR[LPDWHO\ SHUFHQW RI HQJLQH SUREOHPV
DUH UHODWHG WR WKH FRROLQJ V\VWHP )ROORZ WKH
UHFRPPHQGHG PDLQWHQDQFH SUDFWLFHV
2SHUDWLQJ &RQGLWLRQV IRU WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ
'XUDWLRQ ± 7KH PLQLPXP QXPEHU RI RSHUDWLQJ KRXUV
IRU D VLQJOH HQJLQH LQVWDOODWLRQ LV KRXUV 7KH
PLQLPXP IRU RQH HQJLQH DW DQ LQVWDOODWLRQ ZLWK
PXOWLSOH HQJLQHV LV DOVR KRXUV
/RDG )DFWRU ± 7KH ORDG IDFWRU PXVW EH
UHSUHVHQWDWLYH RI WKH QRUPDO HQJLQH DSSOLFDWLRQ DW WKH
VLWH +LJK ORDG IDFWRUV DUH SUHIHUUHG
)DLOXUH WR XVH D ZDWHU VHSDUDWRU
/XEH 2LO ± 7KH FDQGLGDWH RLO PXVW EH VHOHFWHG E\ WKH
RLO FRPSDQ\
8VLQJ ILOWHUV ZKLFK DUH QRW UHFRPPHQGHG E\
6SHFLDO 3XEOLFDWLRQ 3(:- ³ &DW )LOWHU
DQG )OXLG $SSOLFDWLRQ *XLGH´
7KH &DW 0LFUR2[LGDWLRQ 7HVW LV UHFRPPHQGHG DV D
SUHVFUHHQLQJ PHWKRG WR TXDOLI\ RLOV IRU )LHOG
3HUIRUPDQFH (YDOXDWLRQ
6WRULQJ WKH HQJLQH IRU PRUH WKDQ PRQWKV EXW OHVV
WKDQ \U )RU LQIRUPDWLRQ DERXW HQJLQH VWRUDJH
UHIHU WR 6SHFLDO 3XEOLFDWLRQ 6(+6 ³6WRUDJH
3URFHGXUH IRU &DWHUSLOODU 3URGXFWV´
L
)LHOG (YDOXDWLRQ RI &RPPHUFLDO
2LO
60&6 &RGH &DWHUSLOODU ,QF LV IUHTXHQWO\ DSSURDFKHG E\ HQJLQH
RZQHUV DQGRU RLO FRPSDQLHV WKDW ZLVK WR TXDOLI\ DQ
RLO IRU XVH LQ RU & 6HULHV GLHVHO HQJLQHV
)RU DQG & 6HULHV GLHVHO HQJLQHV WKDW DUH
FRQILJXUHG WR XVH GLVWLOODWH IXHO :KHQ WKH IROORZLQJ
IXHOV DUH XVHG GLVWLOODWH IXHO FUXGH RLO IXHO RU
ELRGLHVHO IXHO WKDW PHHWV WKH &DW SXEOLVKHG
UHFRPPHQGDWLRQV &DWHUSLOODU UHFRPPHQGV WKH XVH
RI &DW '(2 'LHVHO (QJLQH 2LO VLQJOH JUDGH DQG
PXOWLJUDGH DQG '(28/6 PXOWLJUDGH
&DWHUSLOODU GRHV QRW UHFRPPHQG WKH QDPHV RI RWKHU
FRPPHUFLDO EUDQGV RI OXEH RLOV &DWHUSLOODU KDV
HVWDEOLVKHG WKH IROORZLQJ JXLGHOLQHV IRU WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ RI OXEH RLO LQ DQG &
6HULHV GLHVHO HQJLQHV
1RWH 3DVVLQJ WKH &DW 0LFUR2[LGDWLRQ 7HVW GRHV
127 JXDUDQWHH SDVVLQJ WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ EXW RLOV WKDW GR QRW SDVV WKH &DW 0LFUR
2[LGDWLRQ 7HVW ZLOO OLNHO\ IDLO WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ
2LO $QDO\VLV ± &DWHUSLOODU UHFRPPHQGV WKH 6ā2ā6
6HUYLFHV RLO DQDO\VLV SURJUDP $OWHUQDWH RLO DQDO\VLV
SURJUDPV PXVW PHDVXUH RLO FRQGLWLRQ DQG ZHDU
PHWDOV 8VHG RLO VDPSOHV PXVW EH REWDLQHG IRU
DQDO\VLV DW KRXU LQWHUYDOV
2LO &KDQJH ,QWHUYDO ± 7KH RLO FKDQJH LQWHUYDO LV
GHWHUPLQHG E\ FRQGHPQLQJ OLPLWV WKDW DUH HVWDEOLVKHG
E\ &DWHUSLOODU 7KH OLPLWV DUH EDVHG RQ DQDO\VLV RI WKH
XVHG RLO DQG WKH WUHQG OLQHV WKDW DUH HVWDEOLVKHG
*HQHUDOO\ WKH VHUYLFH OLIH RI OXEH RLO IRU HQJLQHV WKDW
XVH GLVWLOODWH IXHO LV EHWZHHQ DQG KRXUV
8VXDOO\ IRU HQJLQHV WKDW XVH KHDY\ IXHO RLO WKH VHUYLFH
OLIH RI WKH OXEH RLO UDQJHV EHWZHHQ DQG KRXUV
,I 626 RLO DQDO\VLV DQG RWKHU IDFWRUV DOORZ PD[LPXP
RLO VHUYLFH OLIH IRU GLHVHO IXHOHG HQJLQHV LV KRXUV
0D[LPXP RLO VHUYLFH OLIH IRU KHDY\ IXHO RLO IXHOHG
HQJLQHV LV KRXUV 5HIHU WR WKH 6ā2ā6 DUWLFOH LQ
WKLV 6SHFLDO 3XEOLFDWLRQ
)XHO $QDO\VLV ± $Q DQDO\VLV RI WKH IXHO PXVW EH
SURYLGHG E\ DQ LQGHSHQGHQW ODERUDWRU\ DW WKH
EHJLQQLQJ RI WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ
6XEVHTXHQW DQDO\VHV RI WKH IXHO PXVW EH SURYLGHG DW
LQWHUYDOV RI KRXUV RU SURYLGHG ZKHQ QHZ
VKLSPHQWV RI IXHO DUH UHFHLYHG 7KH IXHO PXVW PHHW
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
WKH JXLGHOLQHV WKDW DUH OLVWHG LQ WKLV 6SHFLDO
3XEOLFDWLRQ ³)XHO 6SHFLILFDWLRQV´ WRSLF
&ULWHULD IRU WKH (YDOXDWLRQ
2LO &RQVXPSWLRQ ± 7KH RLO FRQVXPSWLRQ PXVW QRW
H[FHHG WZR WLPHV WKH LQLWLDO RLO FRQVXPSWLRQ GXULQJ
WKH KRXU SHULRG 7KH LQLWLDO RLO FRQVXPSWLRQ LV
HVWDEOLVKHG GXULQJ WKH ILUVW WR KRXUV RI
RSHUDWLRQ ZLWK WKH RLO WKDW LV EHLQJ HYDOXDWHG
)LQDO ,QVSHFWLRQ ± $W WKH HQG RI WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ WKHVH FRPSRQHQWV IURP WZR
F\OLQGHUV PXVW EH UHPRYHG DQG LQVSHFWHG SLVWRQV
SLVWRQ ULQJV DQG F\OLQGHU OLQHUV 1RQH RI WKH IROORZLQJ
FRQGLWLRQV DUH DFFHSWDEOH VWLFNLQJ RI WKH SLVWRQ ULQJV
VFXIILQJ RI WKH SLVWRQ ULQJV RU F\OLQGHU OLQHUV DQG
H[FHVVLYH ZHDU RI WKH SLVWRQ ULQJV 3ROLVKLQJ RI WKH
F\OLQGHU OLQHU ERUH PXVW EH FRQILQHG WR WKH DUHD WKDW LV
DIIHFWHG E\ WKH XSSHUPRVW SRVLWLRQ RI WKH WRS SLVWRQ
ULQJ 7KH HQWLUH FLUFXPIHUHQFHV RI WKH LQOHW YDOYHV DQG
WKH H[KDXVW YDOYHV PXVW VHDO *XWWHULQJ RI WKH YDOYHV
LV QRW DFFHSWDEOH
,I D QHZ HQJLQH LV XVHG IRU WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ DOO RI WKH F\OLQGHUV LQ WKH HQJLQH PXVW EH
LQVSHFWHG ZLWK D ERUHVFRSH 7KH F\OLQGHU WKDW VKRZV
WKH ZRUVW GHSRVLWV RU ZHDU DQG WKH F\OLQGHU WKDW
VKRZV DYHUDJH GHSRVLWV RU ZHDU PXVW EH XVHG IRU WKH
YLVXDO LQVSHFWLRQ
,I WKH RLO LV HYDOXDWHG LQ D XVHG HQJLQH WZR QHZ VHWV
RI WKHVH FRPSRQHQWV PXVW EH LQVWDOOHG EHIRUH WKH
)LHOG 3HUIRUPDQFH (YDOXDWLRQ SLVWRQV SLVWRQ ULQJV
DQG F\OLQGHU OLQHUV 7KRVH QHZ FRPSRQHQWV ZLOO EH
H[DPLQHG IRU WKH ILQDO LQVSHFWLRQ
&ORVH XS SKRWRJUDSKV WKDW VKRZ WKH ZHDU DQG
GHSRVLWV PXVW EH WDNHQ LQ RUGHU WR GRFXPHQW WKH
DSSHDUDQFH RI WKHVH FRPSRQHQWV SLVWRQV SLVWRQ
ULQJV F\OLQGHU OLQHUV FUDQNFDVH WRS GHFN RI WKH
F\OLQGHU KHDG ERWWRP GHFN RI WKH F\OLQGHU KHDG YDOYH
JXLGHV LQOHW YDOYHV DQG H[KDXVW YDOYHV 3KRWRJUDSKV
WKDW VKRZ WKH HQWLUH FRPSRQHQW PXVW DOVR EH
DYDLODEOH RQ UHTXHVW
6XPPDU\ ± 7KLV )LHOG 3HUIRUPDQFH (YDOXDWLRQ
SURFHGXUH SURYLGHV WKH RLO FRPSDQ\ DQG WKH HQJLQH
RZQHU ZLWK D PHWKRG RI HYDOXDWLQJ D OXEULFDWLQJ RLO IRU
WKH DQG & 6HULHV GLHVHO HQJLQHV ,I WKH RLO
PHHWV WKHVH JXLGHOLQHV IRU WKH KRXUV RI WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ WKH RLO KDV IXOILOOHG WKH &DW
UHTXLUHPHQWV &DWHUSLOODU ZLOO QRW HQGRUVH DQ\ RLO IRU
XVH LQ &DW DQG & 6HULHV GLHVHO HQJLQHV DV
D UHVXOW RI D )LHOG 3HUIRUPDQFH (YDOXDWLRQ 7KH RLO
FRPSDQ\ FDQ XVH WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ
DV SURRI RI SHUIRUPDQFH
5HVSRQVLELOLWLHV
&DUH PXVW EH WDNHQ LQ RUGHU WR GHILQH WKH
UHVSRQVLELOLWLHV RI HDFK SDUW\ WKDW LV LQYROYHG LQ
WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ 7KH RLO FRPSDQ\
DQG WKH HQJLQH RZQHU PXVW UHFRJQL]H WKH
UHVSRQVLELOLWLHV LI WKH SHUIRUPDQFH RI WKH RLO UHGXFHV
WKH VHUYLFH OLIH RI WKH HQJLQH &DWHUSLOODU UHFRPPHQGV
VSHFLILF GHILQLWLRQV RI WKH UHVSRQVLELOLWLHV IRU WKH RLO
FRPSDQ\ DQG WKH HQJLQH RZQHU LQ D )LHOG
3HUIRUPDQFH (YDOXDWLRQ DJUHHPHQW 7KH DJUHHPHQW
VKRXOG EH PDGH EHIRUH WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ LV LQLWLDWHG %RWK WKH RLO FRPSDQ\ DQG WKH
HQJLQH RZQHU PXVW XQGHUVWDQG WKDW WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ LV QRW PRQLWRUHG E\
&DWHUSLOODU 7KH )LHOG 3HUIRUPDQFH (YDOXDWLRQ LV QRW
VSRQVRUHG E\ &DWHUSLOODU
)LHOG (YDOXDWLRQ $JUHHPHQW
7KH )LHOG 3HUIRUPDQFH (YDOXDWLRQ DJUHHPHQW LV
EHWZHHQ WKH HQJLQH RZQHU DQG WKH RLO FRPSDQ\ 7KH
DJUHHPHQW LV D LPSRUWDQW SDUW RI WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ 7KH FRPSOHWLRQ DQG VLJQLQJ
RI WKH DJUHHPHQW VKRXOG RFFXU EHIRUH WKH LQLWLDWLRQ RI
WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ 7KH DJUHHPHQW
PXVW IXOO\ GHILQH WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ
DQG WKH UHVSRQVLELOLWLHV RI HDFK SDUW\ 7KLV SXEOLFDWLRQ
FRQWDLQV WKH LQIRUPDWLRQ DQG JXLGHOLQHV WKDW DUH
QHFHVVDU\ WR ZULWH D GHWDLOHG DJUHHPHQW ,QLWLDO )LHOG
3HUIRUPDQFH (YDOXDWLRQ LQYROYHV VRPH ULVN 8VH RI
WKHVH JXLGHOLQHV ZLOO PLQLPL]H WKH ULVN ,I WKH
JXLGHOLQHV DUH IROORZHG WKH SUREDELOLW\ RI D
VXFFHVVIXO )LHOG 3HUIRUPDQFH (YDOXDWLRQ ZLOO EH
HQKDQFHG
5HVSRQVLELOLWLHV RI WKH 2LO &RPSDQ\
3HUIRUPDQFH ± 7KH SHUIRUPDQFH RI WKH RLO LV WKH
UHVSRQVLELOLW\ RI WKH RLO FRPSDQ\ 7KH RLO PXVW
PDLQWDLQ VWDEOH RLO FRQWURO DQG WKH RLO PXVW FRQWURO
GHSRVLWV LQ WKH FRPEXVWLRQ FKDPEHU DQG LQ WKH
FUDQNFDVH (QJLQH VHUYLFH OLIH PXVW EH PDLQWDLQHG DW
WKH SUHGLFWHG VWDJH IRU WKH SDUWLFXODU HQJLQH
DSSOLFDWLRQ
6XSSO\ ± 7KH VXSSO\ RI WKH RLO LV WKH UHVSRQVLELOLW\ RI
WKH RLO FRPSDQ\ ,I VSHFLDO VWRUDJH DQGRU VKLSSLQJ LV
UHTXLUHG WKH RLO FRPSDQ\ VKRXOG FRYHU WKH FRVW RI
WKRVH LWHPV
2LO DQG IXHO DQDO\VLV ± 'XULQJ WKH HYDOXDWLRQ WKH RLO
FRPSDQ\ VKRXOG SD\ IRU WKH FRVW RI WKH RLO DQG IXHO
DQDO\VHV 7KH RLO VDPSOHV VKRXOG EH DQDO\]HG E\ WKH
ORFDO &DW GHDOHU LQ WKH 6ā2ā6 6HUYLFHV SURJUDP 7KH
GDWD WKDW LV REWDLQHG IURP WKH RLO DQDO\VHV PXVW EH
SORWWHG LQ RUGHU WR HVWDEOLVK WUHQGV 7KH IXHO VKRXOG EH
DQDO\]HG SHULRGLFDOO\ E\ DQ LQGHSHQGHQW ODERUDWRU\
5HVXOWV RI WKH RLO DQG IXHO DQDO\VHV PXVW EH VHQW WR
WKH HQJLQH RZQHU 7KH RZQHU VKRXOG UHYLHZ WKH GDWD
$OVR WKH RZQHU VKRXOG EH DOORZHG WR NHHS UHFRUGV RI
WKH GDWD
+DUGZDUH ± ,I WKH RLO LV HYDOXDWHG LQ D XVHG HQJLQH
WZR QHZ VHWV RI WKHVH FRPSRQHQWV PXVW EH LQVWDOOHG
EHIRUH WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ SLVWRQV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
SLVWRQ ULQJV DQG F\OLQGHU OLQHUV 7KH FRVW VKRXOG EH
FRYHUHG E\ WKH RLO FRPSDQ\ 7KHVH QHZ FRPSRQHQWV
ZLOO EH H[DPLQHG DV SDUW RI WKH ILQDO LQVSHFWLRQ
)LQDO ,QVSHFWLRQ ± 7KH FRVW RI WKH ILQDO LQVSHFWLRQ
VKRXOG EH SDLG E\ WKH RLO FRPSDQ\ 7KH FRVWV RI
DGGLWLRQDO GRZQWLPH FDQ DOVR EH SDUW RI WKH FRVW RI
LQVSHFWLRQ ,I WKH ILQDO LQVSHFWLRQ UHYHDOV VHYHUH
GHSRVLWV DQGRU GDPDJH WR WKH KDUGZDUH WKH RLO
FRPSDQ\ PXVW PDNH WKH UHSDLUV WKDW DUH QHFHVVDU\
IRU UHVWRULQJ WKH HQJLQH WR DQ DFFHSWDEOH FRQGLWLRQ
(QG RI WKH (YDOXDWLRQ ± $IWHU FRPSOHWLRQ RI WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ WKH RLO FRPSDQ\ VKRXOG
ZRUN ZLWK WKH HQJLQH RZQHU LQ RUGHU WR UHVWRUH WKH
HQJLQH WR QRUPDO RSHUDWLRQ ,I WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ LV QRW FRPSOHWHG WKH VDPH FRQGLWLRQV
VKRXOG EH DSSOLFDEOH 7KH RLO FRPSDQ\ VKRXOG EHDU
WKH FRVW RI WKH UHVWRUDWLRQ 7KH FRVW LQFOXGHV WKH
UHPRYDO RI VWRUDJH WDQNV VSHFLDO SLSLQJ IORZ PHWHUV
DQG LQVWUXPHQWDWLRQ
)LQDO 5HSRUW ± WKH RLO FRPSDQ\ PXVW SUHSDUH D ILQDO
UHSRUW WKDW GRFXPHQWV WKH IROORZLQJ LWHPV
,QLWLDO RLO FRQVXPSWLRQ DQG ILQDO RLO FRQVXPSWLRQ
7KH GDWD RQ RLO FRQVXPSWLRQ PXVW EH UHFRUGHG RQ
D PLQLPXP VFKHGXOH RI HYHU\ ZHHN $ FKDUW RI WKH
GDWD PXVW EH LQFOXGHG LQ WKH ILQDO UHSRUW
5HVXOWV RI RLO DQDO\VHV
2LO FKDQJHV
5HSODFHPHQW RI RLO ILOWHUV
5HVXOWV RI IXHO DQDO\VHV
)XHO FRQVXPSWLRQ RU SRZHU RXWSXW
$YHUDJH HQJLQH VSHHG USP
7KH W\SLFDO GXW\ F\FOH
&ORVH XS SKRWRJUDSKV RI WKH IROORZLQJ FRPSRQHQWV
IURP WZR F\OLQGHUV PXVW DOVR EH LQFOXGHG SLVWRQV
SLVWRQ ULQJV EHIRUH UHPRYDO DQG DIWHU UHPRYDO
SLVWRQ ULQJV DIWHU UHPRYDO F\OLQGHU OLQHUV
FUDQNFDVH WRS GHFN RI WKH F\OLQGHU KHDG ERWWRP
GHFN RI WKH F\OLQGHU KHDG LQOHW YDOYHV DQG H[KDXVW
YDOYHV
7KH ILQDO UHSRUW VKRXOG EH FRQILGHQWLDO 7KH ILQDO
UHSRUW VKRXOG EH PDGH DYDLODEOH WR WKH HQJLQH RZQHU
5HVSRQVLELOLWLHV RI WKH (QJLQH 2ZQHU
(QJLQH IRU WKH (YDOXDWLRQ ± 7KH RZQHU PXVW
SURYLGH DFFHVV WR WKH HQJLQH IRU D PLQLPXP RI KRXUV 6SHFLDO SLSLQJ DQG LQVWUXPHQWDWLRQ PD\ EH
DWWDFKHG WR WKH HQJLQH IRU WKH GXUDWLRQ RI WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ
2SHUDWLRQ DQG 0DLQWHQDQFH ± 'DLO\ RSHUDWLRQ DQG
PDLQWHQDQFH RI WKH HQJLQH LV WKH UHVSRQVLELOLW\ RI WKH
RZQHU 2SHUDWLRQ DQG PDLQWHQDQFH RI WKH HQJLQH
PXVW IROORZ WKH JXLGHOLQHV LQ WKH HQJLQH 2SHUDWLRQ
DQG 0DLQWHQDQFH 0DQXDO 7KH GDLO\ UHFRUGV RI WKLV
DFWLYLW\ VKRXOG EH PDGH DYDLODEOH WR WKH RLO FRPSDQ\
2LO 6DPSOHV DQG )XHO 6DPSOHV ± 2LO VDPSOHV DQG
IXHO VDPSOHV ZLOO EH FROOHFWHG E\ WKH RZQHU 7KH
VDPSOHV ZLOO EH VHQW WR WKH DSSURSULDWH ODERUDWRU\ IRU
DQDO\VLV
&DW 5HVSRQVLELOLWLHV
$GYLVRU\ ± &DW ZLOO QRW DVVXPH DQ DFWLYH IXQFWLRQ LQ
WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ +RZHYHU &DW ZLOO
SURYLGH WHFKQLFDO DGYLFH DQG JXLGDQFH WR WKH SDUWLHV
WKDW DUH LQYROYHG &DW XQGHUVWDQGV WKDW WKLV IXQFWLRQ
GRHV QRW VDWLVI\ DOO RI WKH VLWXDWLRQV WKDW PD\ DULVH LQ
)LHOG 3HUIRUPDQFH (YDOXDWLRQ 7KHUHIRUH WHFKQLFDO
MXGJPHQWV PD\ EH UHTXLUHG IRU WKH LQLWLDWLRQ RI VRPH
HYDOXDWLRQV
7R SURYLGH DVVLVWDQFH ZLWK WKH )LHOG 3HUIRUPDQFH
(YDOXDWLRQ \RXU &DW GHDOHU RU GLVWULFW UHSUHVHQWDWLYH
FDQ FRQVXOW WKH DSSURSULDWH WHFKQLFDO VXSSRUW
SHUVRQQHO DW &DWHUSLOODU ,QF
)LQDO ,QVSHFWLRQ ± 8QGHU VRPH FLUFXPVWDQFHV
&DWHUSLOODU PD\ EH DVNHG WR DVVLVW ZLWK WKH LQVSHFWLRQ
7KH HYDOXDWLRQ LV RQ DQ LQGLYLGXDO EDVLV 7KH GHFLVLRQ
GHSHQGV RQ WKH DYDLODELOLW\ RI SHUVRQQHO DQG RQ WKH
DPRXQW RI WHFKQLFDO LQWHUHVW
1RWH $OO DVVRFLDWHG WUDYHO PHDOV DQG ORGJLQJ DUH DW
WKH RLO FRPSDQ\ H[SHQVH
*XLGHOLQHV IRU WKH 8VH RI $ 3URYHQ
/XEULFDQW ,Q 2WKHU (QJLQHV
,QWHUFKDQJLQJ
127,&(
$// ULVNV DVVRFLDWHG ZLWK ³LQWHUFKDQJLQJ´ UHVWV ZLWK
WKH RLO FRPSDQ\ DQG WKH HQJLQH RZQHU
,QWHUFKDQJLQJ ± 7KH LQIRUPDWLRQ WKDW LV REWDLQHG
IURP )LHOG 3HUIRUPDQFH (YDOXDWLRQV PD\ EH
DSSOLFDEOH WR RWKHU DQG & 6HULHVGLHVHO
HQJLQHV DW RWKHU VLWHV +RZHYHU JXLGHOLQHV PXVW EH
HVWDEOLVKHG LQ RUGHU WR OLPLW WKH DSSOLFDWLRQ RI D
OXEULFDQW WKDW KDV EHHQ HYDOXDWHG 7KH JXLGHOLQHV DUH
IRU WKH SURWHFWLRQ RI WKH HQJLQH DQG WKH HQJLQH RZQHU
7KH OLPLW RQ WKH DSSOLFDWLRQ RI WKH OXEULFDQW LV GHILQHG
DV DQ LQWHUFKDQJLQJ
7KH LQWHUFKDQJLQJ RI WKH OXEULFDQW LV OLPLWHG E\ WKHVH
IDFWRUV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
7KH RLO YLVFRVLW\ JUDGH
7KH EDVH VWRFN RI WKH RLO
7KH HQJLQH FRQILJXUDWLRQ
7KH HQJLQH DSSOLFDWLRQ
7KH HQJLQH UDWLQJ
7KH HQJLQH ORDG IDFWRU
7KH IXHO W\SH GLVWLOODWH FUXGH KHDY\ IXHO RLO RU
ELRGLHVHO
(QJLQH &RQILJXUDWLRQ
/XEH RLO &$1127 EH LQWHUFKDQJHG EHWZHHQ
HQJLQHV WKDW XVH GLIIHUHQW W\SHV RI IXHO $ VHSDUDWH
)LHOG 3HUIRUPDQFH (YDOXDWLRQ LV UHTXLUHG IRU
GLVWLOODWH GLHVHO IXHO KHDY\ IXHO RLO FUXGH RLO DQG
ELRGLHVHO
/XEH RLO &$1127 EH LQWHUFKDQJHG EHWZHHQ
HQJLQHV ZLWK FXII W\SH F\OLQGHU OLQHUV DQG HQJLQHV
ZLWKRXW FXII W\SH F\OLQGHU OLQHUV $ VHSDUDWH )LHOG
3HUIRUPDQFH (YDOXDWLRQ LV UHTXLUHG
(QJLQH 5DWLQJ
7KH DYHUDJH SRZHU RXWSXW WKDW LV SURGXFHG E\ WKH
HQJLQH GXULQJ WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ LV
XVHG WR HVWDEOLVK WKH SRZHU UDWLQJ RI WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ 7KH SRZHU RXWSXW PXVW EH
H[SUHVVHG DV %UDNH 0HDQ (IIHFWLYH 3UHVVXUH
%0(3 7KH SRZHU RXWSXW LV GHULYHG IURP RQH RI WKH
IROORZLQJ VRXUFHV
2XWSXW RI WKH JHQHUDWRU VHW
)XHO FRQVXPSWLRQ
7R FDOFXODWH WKH %0(3 WKH DYHUDJH HQJLQH SRZHU
RXWSXW PXVW EH H[SUHVVHG LQ NLORZDWWV 8VH WKH
HTXDWLRQ LQ 7DEOH WR FDOFXODWH WKH %0(3
7DEOH (TXDWLRQ IRU &DOFXODWLQJ WKH %UDNH 0HDQ (IIHFWLYH 3UHVVXUH %0(3
[ N:
²²²²²²²²²²²²²²²²²²
/ [ USP
%0(3 N3D
N: LV WKH DYHUDJH HQJLQH SRZHU RXWSXW GXULQJ WKH HYDOXDWLRQ
/ LV WKH WRWDO GLVSODFHPHQW RI WKH HQJLQH LQ OLWHUV
%0(3 LV H[SUHVVHG LQ NLORSDVFDOV N3D
/XEH RLO FDQ EH LQWHUFKDQJHG EHWZHHQ HQJLQHV DW
GLIIHUHQW VLWHV WKDW RSHUDWH ZLWK D VLPLODU GXW\ F\FOH
+RZHYHU WKH LQWHUFKDQJLQJ LV OLPLWHG E\ D
PD[LPXP RI D SHUFHQW LQFUHDVH LQ %0(3
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6\QWKHWLF %DVHVWRFN 2LOV
'XW\ F\FOHV FDQ YDU\ JUHDWO\ EHWZHHQ GLIIHUHQW VLWHV
DQG EHWZHHQ GLIIHUHQW HQJLQH FRQILJXUDWLRQV
7KHUHIRUH LW LV GLIILFXOW WR GHWHUPLQH DQ DFFXUDWH
GHJUHH RI VHYHULW\ IRU RLO LQ DOO WKH YDULRXV GXW\ F\FOHV
)RU EHVW UHVXOWV RQO\ XVH WKH SURYHQ RLO LQ
DSSOLFDWLRQV ZLWK D VLPLODU GXW\ F\FOH :KHQ GLIIHUHQW
GXW\ F\FOHV DUH LQWURGXFHG WKH ULVN LV LQFUHDVHG
1RWH )RU FDVHV ZLWK GLIIHUHQW GXW\ F\FOHV WKH RLO
FRPSDQ\ DQG WKH HQJLQH RZQHU ZLOO DVVHVV WKH ULVN LQ
RUGHU WR GHWHUPLQH LI DQRWKHU )LHOG 3HUIRUPDQFH
(YDOXDWLRQ LV UHTXLUHG ,Q PRVW FDVHV DQ RLO ZLWK
SURYHQ SHUIRUPDQFH LQ D SDUWLFXODU GXW\ F\FOH ZLOO EH
SUHIHUUHG RYHU DQ RLO WKDW KDV QRW EHHQ SURYHQ IRU WKDW
GXW\ F\FOH
L
6\QWKHWLF %DVHVWRFN 2LOV
60&6 &RGH 6\QWKHWLF EDVH RLOV DUH DFFHSWDEOH IRU XVH LQ &DW
HQJLQHV 7KHVH RLOV PXVW PHHW WKH SHUIRUPDQFH
UHTXLUHPHQWV WKDW DUH VSHFLILHG E\ &DW IRU WKH
HQJLQH FRPSDUWPHQW
6\QWKHWLF EDVH RLOV JHQHUDOO\ SHUIRUP EHWWHU WKDQ
FRQYHQWLRQDO RLOV LQ WKH IROORZLQJ WZR DUHDV
6\QWKHWLF EDVH RLOV KDYH LPSURYHG IORZ DW ORZ
WHPSHUDWXUHV HVSHFLDOO\ LQ DUFWLF FRQGLWLRQV
6\QWKHWLF EDVH RLOV KDYH LPSURYHG R[LGDWLRQ
VWDELOLW\ HVSHFLDOO\ DW KLJK RSHUDWLQJ WHPSHUDWXUHV
6RPH V\QWKHWLF EDVH RLOV KDYH SHUIRUPDQFH
FKDUDFWHULVWLFV WKDW HQKDQFH WKH VHUYLFH OLIH RI WKH RLO
+RZHYHU &DW GRHV QRW UHFRPPHQG WKH DXWRPDWLF
H[WHQVLRQ RI RLO GUDLQ LQWHUYDOV IRU DQ\ W\SH RI RLO
ZKHWKHU V\QWKHWLF RU QRQV\QWKHWLF
2LO GUDLQ LQWHUYDOV IRU &DW HQJLQHV FDQ RQO\ EH
DGMXVWHG KLJKHU ORQJHU LQWHUYDO DIWHU DQ RLO DQDO\VLV
SURJUDP WKDW FRQWDLQV WKH IROORZLQJ GDWD
2LO FRQGLWLRQ RLO FRQWDPLQDWLRQ DQG ZHDU PHWDO
DQDO\VLV &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV
7UHQG DQDO\VLV
)XHO FRQVXPSWLRQ
2LO FRQVXPSWLRQ
5HIHU WR WKH ³([WHQGHG (QJLQH 2LO 'UDLQV DQG
:DUUDQW\´ DUWLFOH LQ WKH )RUHZRUG RI WKLV 6SHFLDO
3XEOLFDWLRQ
L
5HUHILQHG %DVHVWRFN 2LOV
60&6 &RGH 5HUHILQHG EDVHVWRFN RLOV DUH DFFHSWDEOH IRU XVH LQ
&DW HQJLQHV ,) WKHVH RLOV PHHW WKH SHUIRUPDQFH
UHTXLUHPHQWV WKDW DUH VSHFLILHG E\ &DW
5HUHILQHG EDVHVWRFN RLOV FDQ EH XVHG H[FOXVLYHO\ LQ
ILQLVKHG RLO RU LQ D FRPELQDWLRQ ZLWK QHZ EDVHVWRFN
RLOV 7KH 86 PLOLWDU\ VSHFLILFDWLRQV DQG WKH
VSHFLILFDWLRQV RI RWKHU KHDY\ HTXLSPHQW
PDQXIDFWXUHUV DOVR DOORZ WKH XVH RI UHUHILQHG
EDVHVWRFN RLOV WKDW PHHW WKH VDPH FULWHULD
7KH SURFHVV WKDW LV XVHG WR PDNH UHUHILQHG EDVHVWRFN
RLO VKRXOG DGHTXDWHO\ UHPRYH DOO ZHDU PHWDOV DQG DOO
DGGLWLYHV WKDW DUH LQ WKH XVHG RLO 9DFXXP GLVWLOODWLRQ
DQG WKH K\GURWUHDWLQJ RI WKH XVHG RLO DUH DFFHSWDEOH
SURFHVVHV WKDW DUH XVHG IRU SURGXFLQJ UHUHILQHG EDVH
RLO
1RWH )LOWHULQJ LV LQDGHTXDWH IRU WKH SURGXFWLRQ RI
KLJK TXDOLW\ UHUHILQHG EDVHVWRFN RLOV IURP XVHG RLO
L
*RYHUQRU 2LO
60&6 &RGH )RU RSWLPXP SHUIRUPDQFH &DWHUSLOODU UHFRPPHQGV
*RYHUQRU 2LO 6$( : V\QWKHWLF RLO 7KLV UHFRPPHQGDWLRQ DSSOLHV WR DOO VHOIFRQWDLQHG RLO
VXSSO\ DFWXDWRUV XVHG RQ 6HULHV GLHVHO HQJLQHV
L
$IWHUPDUNHW 2LO $GGLWLYHV
60&6 &RGH &DW GRHV QRW UHFRPPHQG WKH XVH RI DIWHUPDUNHW
DGGLWLYHV LQ RLO $IWHUPDUNHW DGGLWLYHV DUH QRW
QHFHVVDU\ LQ RUGHU WR DFKLHYH WKH PD[LPXP VHUYLFH
OLIH RI WKH HQJLQH RU UDWHG SHUIRUPDQFH RI WKH HQJLQH
)XOO\ IRUPXODWHG ILQLVKHG RLOV FRQVLVW RI EDVH RLOV DQG
RI FRPPHUFLDO DGGLWLYH SDFNDJHV 7KHVH DGGLWLYH
SDFNDJHV DUH EOHQGHG LQWR WKH EDVH RLOV DW SUHFLVH
SHUFHQWDJHV LQ RUGHU WR KHOS SURYLGH SHUIRUPDQFH
FKDUDFWHULVWLFV WKDW PHHW LQGXVWU\ VWDQGDUGV
7KHUH DUH QR LQGXVWU\ VWDQGDUG WHVWV WKDW HYDOXDWH WKH
SHUIRUPDQFH RU WKH FRPSDWLELOLW\ RI DIWHUPDUNHW
DGGLWLYHV LQ ILQLVKHG RLO $IWHUPDUNHW DGGLWLYHV PD\ QRW
EH FRPSDWLEOH ZLWK WKH ILQLVKHG RLO DGGLWLYH SDFNDJH
ZKLFK FRXOG ORZHU WKH SHUIRUPDQFH RI WKH ILQLVKHG RLO
7KH DIWHUPDUNHW DGGLWLYH FRXOG IDLO WR PL[ ZLWK WKH
ILQLVKHG RLO DQG SURGXFH VOXGJH LQ WKH FUDQNFDVH &DW
GLVFRXUDJHV WKH XVH RI DIWHUPDUNHW DGGLWLYHV LQ
ILQLVKHG RLOV
7R DFKLHYH WKH EHVW SHUIRUPDQFH IURP D &DW HQJLQH
FRQIRUP WR WKH IROORZLQJ JXLGHOLQHV
/XEULFDQW 6SHFLILFDWLRQV
$IWHUPDUNHW 2LO $GGLWLYHV
6HOHFW WKH SURSHU &DW RLO RU FRPPHUFLDO RLO WKDW
KDV SDVVHG WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ
5HIHU WR WKH ³6HOHFWLQJ D &RPPHUFLDO 2LO´ DUWLFOH LQ
WKH ³/XEULFDQW 6SHFLILFDWLRQV´ VHFWLRQ RI WKLV
6SHFLDO 3XEOLFDWLRQ
5HIHU WR WKH DSSURSULDWH ³/XEULFDQW 9LVFRVLWLHV IRU
$PELHQW 7HPSHUDWXUHV´ WDEOH LQ WKLV 6SHFLDO
3XEOLFDWLRQ LQ RUGHU WR ILQG WKH FRUUHFW RLO YLVFRVLW\
JUDGH IRU \RXU HQJLQH
$W WKH VSHFLILHG LQWHUYDO VHUYLFH WKH HQJLQH
FRPSDUWPHQW 8VH DSSURSULDWH QHZ RLO DQG LQVWDOO
DQ DSSURSULDWH QHZ RLO ILOWHU
3HUIRUP PDLQWHQDQFH DW WKH LQWHUYDOV WKDW DUH
VSHFLILHG LQ WKH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO ³0DLQWHQDQFH ,QWHUYDO 6FKHGXOH´
6(%8
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6SHFLDOW\ /XEULFDQWV
L
6SHFLDOW\ /XEULFDQWV
60&6 &RGH 7DEOH 6SHFLDO3XUSRVH &DW /XEULFDQWV
,WHP
6L]H
9 /XEULFDQW
J R]
3 7KUHDG &RPSRXQG
J R]
5RG EROW WRUTXH JUHDVH
J R]
5HFRPPHQGHG IRU XVH RQ W\SLFDO FRPSRQHQWV VXFK DV KHDG EROW WKUHDGV DQG ZDVKHUV
5HFRPPHQGHG IRU PDWLQJ FRQQHFWRUV VXFK DV H[KDXVW PDQLIROG VWXGV DQG H[KDXVW PDQLIROG QXWV
7DEOH 89 9LVLEOH '\HV IRU /HDN 'HWHFWLRQ
'HVFULSWLRQ
3DUW 1XPEHU
6L]H
'RVDJH
7R GHWHFW RLO OHDNV LQ HQJLQHV WUDQVPLVVLRQV K\GUDXOLF V\VWHPV
8
2LO *OR $GGLWLYH
JUDP RXQFH ERWWOH
JUDP RXQFH SHU / 8V JDO RI RLO
8
2LO *OR $GGLWLYH
/ SLQW ERWWOH
JUDP RXQFH SHU / 86 JDO RI RLO
7R GHWHFW IXHO OHDNV RU VXVSHFWHG IXHO GLOXWLRQ
8
*DV *OR $GGLWLYH
JUDP RXQFH ERWWOH
JUDP RXQFH SHU / 86 JDO RI JDVROLQH RU GLHVHO IXHO
8
*DV *OR $GGLWLYH
/ SLQW ERWWOH
JUDP RXQFH SHU / 86 JDO RI JDVROLQH RU GLHVHO IXHO
7R GHWHFW FRROLQJ V\VWHP OHDNV
8
:DWHU *OR $GGLWLYH
JUDP RXQFH ERWWOH
JUDP RXQFH SHU /
86 JDO RI ZDWHU
8
:DWHU *OR $GGLWLYH
/ SLQW ERWWOH
JUDP RXQFH SHU /
86 JDO RI ZDWHU
7KH G\HV PXVW EH XVHG ZLWK D VSHFLDO *OR *XQ WR
GHWHFW WKH OHDNV &RQVXOW \RXU ORFDO &DW GHDOHU IRU
DYDLODELOLW\
L
&ROG :HDWKHU /XEULFDQWV
60&6 &RGH 127,&(
5HFRPPHQGHG HQJLQH ZDUPXS SURFHGXUH PXVW EH
IROORZHG 5HIHU WR WKH HQJLQH 2SHUDWLRQ DQG 0DLQWH
QDQFH 0DQXDO $OVR UHIHU WR WKH UHOHYDQW ³/XEULFDQW
9LVFRVLWLHV IRU $PELHQW 7HPSHUDWXUHV´ WDEOH LQ WKLV
6SHFLDO 3XEOLFDWLRQ
)RU HDVLHU FROG ZHDWKHU VWDUWLQJ HQVXUH WKDW DOO RI WKH
FRPSRQHQWV RI WKH HQJLQH HOHFWULFDO V\VWHP DUH
SURSHUO\ PDLQWDLQHG $OO HOHFWULFDO ZLULQJ DQG
FRQQHFWLRQV VKRXOG EH IUHH RI WKH IROORZLQJ IUD\LQJ
GDPDJHG LQVXODWLRQ DQG FRUURVLRQ %DWWHULHV VKRXOG
EH NHSW IXOO\ FKDUJHG DQG ZDUP 7KH EDWWHULHV DQG
WKH EDWWHU\ FDEOHV PXVW EH VL]HG SURSHUO\ IRU WKH
DSSOLFDWLRQ
9DULRXV VWDUWLQJ DLGV DUH DYDLODEOH LQ RUGHU WR DVVLVW
ZLWK FROG HQJLQH VWDUWV LQ ORZ WHPSHUDWXUH FRQGLWLRQV
)ROORZ WKH UHFRPPHQGDWLRQV WKDW DUH SURYLGHG E\ WKH
PDQXIDFWXUHU RI WKH VWDUWLQJ DLG 5HIHU WR WKH IRUHZRUG
VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ ³$IWHUPDUNHW
3URGXFWV DQG :DUUDQW\´
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6ā2ā6 6HUYLFHV 2LO $QDO\VLV
)RU DGGLWLRQDO LQIRUPDWLRQ FRQFHUQLQJ FROGZHDWKHU
RSHUDWLRQ UHIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³)XHO
6SHFLILFDWLRQV´ VHFWLRQ $OVR UHIHU WR WKLV 6SHFLDO
3XEOLFDWLRQ ³&RROLQJ 6\VWHP 6SHFLILFDWLRQV´ VHFWLRQ
%HIRUH DWWHPSWLQJ WR VWDUW WKH HQJLQH HQVXUH WKDW WKH
RLO LQ WKH HQJLQH LV IOXLG HQRXJK WR IORZ &KHFN WKH RLO
E\ UHPRYLQJ WKH GLSVWLFN ,I WKH RLO ZLOO GULS IURP WKH
GLSVWLFN WKHQ WKH RLO VKRXOG EH IOXLG HQRXJK WR DOORZ
WKH HQJLQH WR VWDUW 'R QRW XVH RLO WKDW KDV EHHQ
GLOXWHG ZLWK NHURVHQH .HURVHQH ZLOO HYDSRUDWH LQ WKH
HQJLQH DQG FDXVH WKH RLO WR WKLFNHQ .HURVHQH ZLOO
FDXVH VZHOOLQJ DQG VRIWHQLQJ RI WKH VLOLFRQH VHDOV
.HURVHQH ZLOO GLOXWH WKH RLO DGGLWLYHV 'LOXWLRQ RI WKH RLO
DGGLWLYHV ZLOO UHGXFH WKH SHUIRUPDQFH DQG UHGXFH WKH
HQJLQH SURWHFWLRQ WKDW WKH DGGLWLYHV SURYLGH
,I WKH YLVFRVLW\ RI WKH RLO LV FKDQJHG IRU FROGHU
ZHDWKHU DOVR FKDQJH WKH ILOWHU HOHPHQW ,I WKH ILOWHU LV
QRW FKDQJHG WKH ILOWHU HOHPHQW DQG WKH ILOWHU KRXVLQJ
FDQ EHFRPH D VROLG PDVV $IWHU \RX FKDQJH WKH RLO
RSHUDWH WKH HQJLQH LQ RUGHU WR FLUFXODWH WKH WKLQQHU RLO
127,&(
(QJLQHV WKDW XVH IOXLG RU SDQ KHDWHUV RU KHDWHG
HQFORVXUHV RU DUH NHSW UXQQLQJ XQGHU ORDG HWF
FDQ DQG JHQHUDOO\ VKRXOG XVH KLJKHU YLVFRVLW\
RLO 7KH ³/XEULFDQW 9LVFRVLWLHV IRU $PELHQW 7HPSHUD
WXUHV´ WDEOHV 0DLQWHQDQFH 6HFWLRQ ³0LQLPXP´ YLV
FRVLW\ IRU DPELHQW WHPSHUDWXUH UHFRPPHQGDWLRQV DUH
IRU FROGVRDNHG FRQGLWLRQV 8VH WKH KLJKHVW YLVFRVLW\
RLO WKDW LV DOORZHG IRU WKH DPELHQW WHPSHUDWXUH ZKHQ
\RX VWDUW WKH PDFKLQH %87 XQGHU &RQWLQXRXV 8V
DJH 0XOWLSOH 6KLIWV'D\ DQGRU ZKHQ XVLQJ IOXLG
RU SDQ KHDWHUV HWF XVH D KLJKHU YLVFRVLW\ RLO 127
WKH RLO ZLWK WKH PLQXPXP UHFRPPHQGHG YLVFRVLW\ IRU
FROGVRDNHG VWDUWLQJ FRQGLWLRQV 7KH KLJKHU YLVFRVLW\
RLO ZLOO PDLQWDLQ WKH KLJKHVW SRVVLEOH RLO ILOP WKLFNQHVV
5HIHU WR WKH ³/XEULFDQW 9LVFRVLWLHV IRU $PELHQW 7HP
SHUDWXUHV´ WDEOHV DQG WKH WDEOH IRRWQRWHV IRU
H[FHSWLRQV
1RWH 8VH WKH KLJKHVW RLO YLVFRVLW\ JUDGH WKDW LV
DOORZHG IRU WKH DPELHQW WHPSHUDWXUH ZKHQ \RX VWDUW
WKH HQJLQH ,I D GLIIHUHQW RLO YLVFRVLW\ JUDGH LV VSHFLILHG
LQ WKH WDEOH XVH WKH YLVFRVLW\ JUDGH WKDW LV VSHFLILHG LQ
WKH WDEOH ,Q DUFWLF DSSOLFDWLRQV WKH SUHIHUUHG
PHWKRG RI OXEULFDWLRQ LV WR XVH D SURSHUO\ VL]HG
HQJLQH FRPSDUWPHQW KHDWHU DQG D KLJKHU
YLVFRVLW\ JUDGH RLO 5HIHU WR WKH ³/XEULFDQW
9LVFRVLWLHV´ DUWLFOH LQ WKLV 6SHFLDO 3XEOLFDWLRQ IRU
IXUWKHU GHWDLOV
127,&(
,I DPELHQW FRQGLWLRQV ZDUUDQW D KLJKHU YLVFRVLW\ RLO RI
WKH UHFRPPHQGHG VSHFLILFDWLRQ IRU D JLYHQ FRPSDUW
PHQW PD\ QHHG WR EH LQVWDOOHG LQ RUGHU WR SURYLGH DG
HTXDWH ILOP WKLFNQHVV
1RWH &ROGVRDNHG VWDUWV RFFXU ZKHQ WKH HQJLQH KDV
QRW EHHQ RSHUDWHG IRU D WLPH 7KH RLO ZLOO EHFRPH
PRUH YLVFRXV GXH WR FRROHU DPELHQW WHPSHUDWXUHV
6XSSOHPHQWDO KHDW LV UHFRPPHQGHG IRU FROGVRDNHG
VWDUWV WKDW DUH EHORZ WKH PLQLPXP DPELHQW
WHPSHUDWXUHV OLVWHG LQ WKH ³/XEULFDQW 9LVFRVLWLHV IRU
$PELHQW 7HPSHUDWXUHV´ WDEOHV 6XSSOHPHQWDO KHDW
PD\ EH UHTXLUHG IRU FROGVRDNHG VWDUWV WKDW DUH DERYH
WKH PLQLPXP WHPSHUDWXUH WKDW LV VWDWHG GHSHQGLQJ
RQ WKH SDUDVLWLF ORDG DQG RWKHU IDFWRUV
60&6 &RGH L
6ā2ā6 6HUYLFHV 2LO $QDO\VLV
127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
&DW KDV GHYHORSHG D PDLQWHQDQFH PDQDJHPHQW WRRO
WKDW HYDOXDWHV RLO GHJUDGDWLRQ DQG GHWHFWV WKH HDUO\
VLJQV RI ZHDU RQ LQWHUQDO FRPSRQHQWV 7KH &DW WRRO
IRU RLO DQDO\VLV LV FDOOHG 6ā2ā6 RLO DQDO\VLV DQG WKH
WRRO LV SDUW RI WKH 6ā2ā6 6HUYLFHV SURJUDP 6ā2ā6 RLO
DQDO\VLV GLYLGHV RLO DQDO\VLV LQWR IRXU FDWHJRULHV
&RPSRQHQW ZHDU UDWH
2LO FRQGLWLRQ
2LO FRQWDPLQDWLRQ
2LO LGHQWLILFDWLRQ
&RPSRQHQW :HDU 5DWH DQDO\VLV HYDOXDWHV WKH ZHDU
WKDW LV WDNLQJ SODFH LQVLGH WKH OXEULFDWHG FRPSDUWPHQW
7KH 6ā2ā6 6HUYLFHV DQDO\VW XVHV WKH UHVXOWV RI
HOHPHQWDO DQDO\VLV DQG SDUWLFOH FRXQW WHVWV WR
HYDOXDWH WKH ZHDU 7UHQG DQDO\VLV DQG SURSULHWDU\
ZHDU WDEOHV DUH WKHQ XVHG WR GHWHUPLQH LI ZHDU UDWHV
DUH QRUPDO RU DEQRUPDO
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6ā2ā6 6HUYLFHV 2LO $QDO\VLV
2LO &RQGLWLRQ DQDO\VLV LV XVHG WR GHWHUPLQH LI WKH RLO
KDV GHJUDGHG 7HVWV DUH GRQH WR ORRN DW WKH R[LGDWLRQ
VXOIDWLRQ DQG YLVFRVLW\ RI WKH RLO 7KH 6ā2ā6 6HUYLFHV
DQDO\VW XVHV HVWDEOLVKHG JXLGHOLQHV RU WUHQG DQDO\VLV
WR GHWHUPLQH LI WKH RLO KDV UHDFKHG WKH XVHIXO OLIH OLPLW
2LO &RQWDPLQDWLRQ WHVWV DUH SHUIRUPHG WR GHWHUPLQH LI
DQ\WKLQJ KDUPIXO KDV HQWHUHG WKH RLO 7KLV DQDO\VLV
UHOLHV RQ WKH UHVXOWV IURP WKH IROORZLQJ WHVWV
HOHPHQWDO DQDO\VLV VRRW SDUWLFOH FRXQW IXHO GLOXWLRQ
ZDWHU DQG JO\FRO 7KH 6ā2ā6 6HUYLFHV SURJUDP KDV
JXLGHOLQHV IRU WKH OHYHO RI FRQWDPLQDWLRQ WKDW DUH
DOORZHG LQ &DW HQJLQHV
2LO ,GHQWLILFDWLRQ LV DQRWKHU LPSRUWDQW SDUW RI WKH
6ā2ā6 RLO DQDO\VLV SURJUDP 7KH ZURQJ RLO LQ DQ
HQJLQH FDQ VHYHUHO\ GDPDJH PDMRU FRPSRQHQWV 7KH
6ā2ā6 6HUYLFHV DQDO\VW XVHV HOHPHQWDO DQDO\VLV DQG
YLVFRVLW\ UHVXOWV WR LGHQWLI\ NH\ FKDUDFWHULVWLFV RI WKH
RLOV
7KHVH IRXU W\SHV RI DQDO\VLV DUH XVHG WR PRQLWRU WKH
FRQGLWLRQ RI \RXU HTXLSPHQW DQG WR KHOS \RX LGHQWLI\
SRWHQWLDO SUREOHPV $ SURSHUO\ DGPLQLVWHUHG 6ā2ā6
6HUYLFHV RLO DQDO\VLV SURJUDP ZLOO UHGXFH UHSDLU FRVWV
DQG WKH SURJUDP ZLOO OHVVHQ WKH LPSDFW RI GRZQWLPH
7KH 6ā2ā6 RLO DQDO\VLV SURJUDP XVHV D ZLGH UDQJH RI
WHVWV WR GHWHUPLQH WKH FRQGLWLRQ RI WKH RLO DQG WKH
OXEULFDWHG FRPSDUWPHQW
*XLGHOLQHV WKDW DUH EDVHG RQ H[SHULHQFH DQG D
FRUUHODWLRQ WR IDLOXUHV KDYH EHHQ HVWDEOLVKHG IRU WKHVH
WHVWV 6HH WKH IROORZLQJ FKDUW IRU WKH JXLGHOLQHV
([FHHGLQJ RQH RU PRUH RI WKHVH JXLGHOLQHV FRXOG
LQGLFDWH VHULRXV IOXLG GHJUDGDWLRQ RU D SHQGLQJ
FRPSRQHQW IDLOXUH $ WUDLQHG SHUVRQ DW \RXU &DW
GHDOHUVKLS VKRXOG PDNH WKH ILQDO DQDO\VLV
2LO DQDO\VLV LV RQH RI WKH GLDJQRVWLF WRROV WR GHWHUPLQH
HQJLQH KHDOWK 2LOV WKDW DUH ZLWKLQ WKH OLPLWV JLYHQ E\
WKH JXLGHOLQHV PD\ QRW LQGLFDWH DOO HQJLQH KHDOWK
LVVXHV 8QGHU FHUWDLQ FRQGLWLRQV LQFOXGLQJ EXW QRW
OLPLWHG WR VHYHUH RSHUDWLQJ FRQGLWLRQV RLOV WKDW DUH
ZLWKLQ WKH OLPLWV JLYHQ E\ WKH JXLGHOLQHV PD\ UHTXLUH
FKDQJLQJ HDUO\
1RWH &RROLQJ V\VWHP SUREOHPV ZLOO DOVR UHGXFH WKH
OLIH RI HQJLQHV 6ā2ā6 FRRODQW DQDO\VLV DQG 6ā2ā6 RLO
DQDO\VLV SURYLGH D FRPSOHWH DQG DFFXUDWH PHWKRG IRU
PRQLWRULQJ WKH KHDOWK RI DOO HQJLQH V\VWHPV 5HIHU WR
WKH 6ā2ā6 6HUYLFHV FRRODQW DQDO\VLV LQIRUPDWLRQ LQ
WKLV 6SHFLDO 3XEOLFDWLRQ $ SURSHUO\ DGPLQLVWHUHG
6ā2ā6 6HUYLFHV SURJUDP ZLOO UHGXFH UHSDLU FRVWV DQG
OHVVHQ WKH LPSDFW RI GRZQWLPH
5HIHU WR WKH ³&RQWDPLQDWLRQ &RQWURO´ DUWLFOH LQ WKLV
6SHFLDO 3XEOLFDWLRQ IRU UHFRPPHQGHG IOXLG
FOHDQOLQHVV WDUJHWV
7DEOH 6ā2ā6 2LO $QDO\VLV *XLGHOLQHV
7HVW 3DUDPHWHU
*XLGHOLQH
2[LGDWLRQ
6RRW
6XOIDWLRQ
:HDU 0HWDOV
7UHQG $QDO\VLV DQG &DW :HDU
7DEOH QRUPV
:DWHU
PD[LPXP
*O\FRO
)XHO 'LOXWLRQ
EDVHG RQ YLVFRVLW\ DQG *& IXHO GLOXWLRQ LQ H[FHVV RI 9LVFRVLW\ ³$670 '´ PHDV
XUHG DW & )
FHQWLVWRNH F6W FKDQJH
IURP QHZ RLO YLVFRVLW\
$FFHSWDEOH YDOXHV IRU WKHVH SDUDPHWHUV DUH SURSULHWDU\ WR WKH
6ā2ā6 RLO DQDO\VLV SURJUDP
*DV &KURPDWRJUDSK
1RWH 0RVW RLO DQDO\VLV SURJUDPV GR QRW GHWHFW ODUJHU
SDUWLFOHV LQ WKH RLO VDPSOH 6RPH IDLOXUH PRGHV RQO\
SURGXFH ODUJHU SDUWLFOHV 2LO DQDO\VLV DORQH ZLOO QRW
DOZD\V GHWHFW DQ LPSHQGLQJ IDLOXUH 2LO ILOWHUV VKRXOG
EH VHFWLRQHG DQG LQVSHFWHG IRU WKH SUHVHQFH RI
YLVLEOH SDUWLFOHV
7KH HQJLQH RLO FRQVXPSWLRQ PXVW EH PHDVXUHG DQG
UHFRUGHG $ VLJQLILFDQW LQFUHDVH LQ RLO FRQVXPSWLRQ
FDQ LQGLFDWH D SUREOHP ZLWK F\OLQGHU SDFN GHSRVLWV RU
FRPSRQHQWV $GGLWLRQDOO\ RLO DGGLWLRQV GLOXWH ZHDU
PHWDOV DQG RWKHU FRQWDPLQDQWV 2LO DQDO\VLV UHVXOWV
PD\ EHFRPH LQDFFXUDWH
&RQVXOW \RXU &DW GHDOHU IRU FRPSOHWH LQIRUPDWLRQ DQG
DVVLVWDQFH DERXW WKH 6ā2ā6 RLO DQDO\VLV SURJUDP
2EWDLQLQJ 6ā2ā6 2LO 6DPSOHV
%HIRUH \RX REWDLQ DQ 6ā2ā6 RLO VDPSOH RSHUDWH WKH
HQJLQH XQWLO WKH RLO LV ZDUP DQG WKH RLO LV FLUFXODWHG
7KHQ REWDLQ WKH 6ā2ā6 RLO VDPSOH
,Q RUGHU WR REWDLQ D JRRG RLO VDPSOH GR QRW WDNH WKH
RLO VDPSOH IURP WKH GUDLQ VWUHDP 7KH GUDLQ VWUHDP
PHWKRG FDQ DOORZ D VWUHDP RI GLUW\ RLO IURP WKH ERWWRP
RI WKH FRPSDUWPHQW WR FRQWDPLQDWH WKH VDPSOH
/LNHZLVH QHYHU GLS DQ RLO VDPSOH IURP DQ RLO
FRQWDLQHU RU SRXU D VDPSOH IURP D XVHG ILOWHU
7KHUH DUH WZR DFFHSWDEOH ZD\V WR REWDLQ 6ā2ā6 RLO
VDPSOHV 7KH IROORZLQJ PHWKRGV DUH OLVWHG LQ WKH
RUGHU WKDW LV SUHIHUUHG
8VH DQ LQOLQH VDPSOLQJ YDOYH RQ WKH SUHVVXUL]HG
RLO PDQLIROG
8VH D VDPSOLQJ JXQ YDFXXP SXPS WKDW LV
LQVHUWHG LQWR WKH VXPS
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6ā2ā6 6HUYLFHV 2LO $QDO\VLV
8VH RI WKH LQOLQH VDPSOLQJ YDOYH LV WKH SUHIHUUHG
PHWKRG 7KLV PHWKRG SURYLGHV VDPSOHV WKDW DUH OHVV
OLNHO\ WR EH FRQWDPLQDWHG :KHQHYHU \RX REWDLQ WKH
VDPSOHV REWDLQ WKH VDPSOHV IURP WKH VDPH SRLQW
7KH VDPSOHV ZLOO EH PRUH UHSUHVHQWDWLYH RI WKH RLO
WKDW LV LQ WKH V\VWHP
1RUPDOO\ WKH RLO VDPSOH LV WDNHQ DW ORZ LGOH ,I WKH IORZ
UDWH LV WRR ORZ LQFUHDVH HQJLQH VSHHG WR +,*+ ,'/(
LQ RUGHU WR REWDLQ WKH RLO VDPSOH
127,&(
'R QRW XVH WKH VDPH YDFXXP VDPSOLQJ SXPS IRU H[
WUDFWLQJ RLO VDPSOHV WKDW LV XVHG IRU H[WUDFWLQJ FRRODQW
VDPSOHV
$ VPDOO UHVLGXH RI HLWKHU W\SH VDPSOH PD\ UHPDLQ LQ
WKH SXPS DQG PD\ FDXVH D IDOVH SRVLWLYH DQDO\VLV IRU
WKH VDPSOH EHLQJ WDNHQ
$OZD\V XVH D VHSDUDWH SXPS IRU RLO VDPSOLQJ DQG D
VHSDUDWH SXPS IRU FRRODQW VDPSOLQJ
)DLOXUH WR GR VR PD\ FDXVH D IDOVH DQDO\VLV ZKLFK
FRXOG OHDG WR FXVWRPHU DQG GHDOHU FRQFHUQV
2LO 6DPSOLQJ ,QWHUYDO
7DNH WKH RLO VDPSOHV DV FORVH DV SRVVLEOH WR WKH
VWDQGDUG LQWHUYDOV ,Q RUGHU WR UHFHLYH WKH IXOO YDOXH
IURP 6ā2ā6 RLO DQDO\VLV HVWDEOLVK D FRQVLVWHQW WUHQG
RI GDWD ,Q RUGHU WR HVWDEOLVK D SHUWLQHQW KLVWRU\ RI
GDWD SHUIRUP FRQVLVWHQW RLO VDPSOLQJV WKDW DUH HYHQO\
VSDFHG
5HFRPPHQGHG LQWHUYDO IRU HQJLQH RLO VDPSOHV LV
JLYHQ LQ 7DEOH $ KRXU VDPSOLQJ LQWHUYDO FDQ
SURYLGH D WLPHO\ LQGLFDWLRQ RI RLO FRQWDPLQDWLRQ DQG RLO
GHJUDGDWLRQ
0HDVXUH DQG UHFRUG HQJLQH RLO FRQVXPSWLRQ LQ RUGHU
WR DOORZ DFFXUDWH RLO DQDO\VLV 2LO DGGLWLRQV GXULQJ WKH
VDPSOLQJ LQWHUYDO GLOXWH ZHDU PHWDOV DQG RWKHU
FRQWDPLQDQWV
7DEOH 6ā2ā6 2LO 6DPSOLQJ ,QWHUYDO IRU (QJLQH FUDQNFDVH
5HFRPPHQGHG ,QWHUYDO
(YHU\ 6HUYLFH +RXUV
2LO 7\SH
&DW '(2
&DW '(28/6
6HYHUH DSSOLFDWLRQV PD\ UHTXLUH D PRUH IUHTXHQW RLO VDPSOLQJ
LQWHUYDO
8QGHU FHUWDLQ FRQGLWLRQV WKH &DW GHDOHU RU WKH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO PD\ DOORZ D ORQJHU LQWHUYDO EHWZHHQ RLO
VDPSOLQJV
1RWH 5HIHU WR WKH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO IRU \RXU HQJLQH IRU UHFRPPHQGHG RLO GUDLQ
LQWHUYDOV
&RQVXOW \RXU &DW GHDOHU IRU FRPSOHWH LQIRUPDWLRQ DQG
DVVLVWDQFH LQ RUGHU WR HVWDEOLVK DQ 6ā2ā6 6HUYLFHV
SURJUDP IRU \RXU HQJLQH
0RUH )UHTXHQW 6ā2ā6 6DPSOLQJ ,PSURYHV
/LIH &\FOH 0DQDJHPHQW
7UDGLWLRQDOO\ WKH VXJJHVWHG 6ā2ā6 VDPSOLQJ LQWHUYDOV
IRU GLHVHO HQJLQHV KDYH EHHQ DW KRXUV +RZHYHU
LQ VHYHUH DSSOLFDWLRQV PRUH IUHTXHQW RLO VDPSOLQJ LV
UHFRPPHQGHG 6HYHUH VHUYLFH IRU OXEULFDWHG
FRPSDUWPHQWV RFFXUV DW KLJK ORDGV LQ KLJK
WHPSHUDWXUHV DQG LQ GXVW\ FRQGLWLRQV ,I DQ\ RI WKHVH
FRQGLWLRQV RU RWKHU VHYHUH VHUYLFH LQGLFDWRUV H[LVW
VDPSOH WKH HQJLQH RLO DW KRXU LQWHUYDOV 7KHVH
DGGLWLRQDO VDPSOHV ZLOO LQFUHDVH WKH FKDQFH RI
GHWHFWLQJ D SRWHQWLDO IDLOXUH
'HWHUPLQLQJ 2SWLPXP 2LO &KDQJH
,QWHUYDOV
6DPSOLQJ WKH HQJLQH RLO DW HYHU\ KRXUV SURYLGHV
LQIRUPDWLRQ IRU RLO FRQGLWLRQ DQG IRU RLO SHUIRUPDQFH
7KLV LQIRUPDWLRQ LV XVHG WR GHWHUPLQH WKH RSWLPXP
XVDEOH OLIH RI D SDUWLFXODU RLO $OVR PRUH SRLQWV RI GDWD
ZLOO DOORZ FORVHU PRQLWRULQJ RI FRPSRQHQW ZHDU UDWHV
&ORVH PRQLWRULQJ DOVR DOORZV \RX WR REWDLQ WKH
PD[LPXP XVH RI WKH RLO )RU GHWDLOHG LQIRUPDWLRQ RQ
RSWLPL]LQJ RLO FKDQJH LQWHUYDOV FRQVXOW \RXU &DW
GHDOHU
7KLV 6SHFLDO 3XEOLFDWLRQ GRHV QRW DGGUHVV
UHFRPPHQGHG RLO GUDLQ LQWHUYDOV 5HIHU WR \RXU HQJLQH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO DQG FRQVXOW \RXU
&DW GHDOHU IRU DGGLWLRQDO JXLGDQFH LQFOXGLQJ EXW QRW
OLPLWHG WR JXLGDQFH RQ HVWDEOLVKLQJ RSWLPL]HG DQGRU
DFFHSWDEOH RLO GUDLQ LQWHUYDOV
1RWH 7KH XVH RI &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV
KHOSV HQYLURQPHQWDO VXVWDLQDELOLW\ DV WKH EHVW ZD\ WR
RSWLPL]H RLO OLIH 6ā2ā6 6HUYLFHV ZLOO KHOS HQJLQHV
UHDFK H[SHFWHG OLIH &RQVXOW \RXU &DW GHDOHU
UHJDUGLQJ WKH WHVWLQJ UHTXLUHG WR HVWDEOLVK D VDIH
RSWLPL]HG RLO GUDLQ LQWHUYDO
6WDQGDUG RLO GUDLQ LQWHUYDOV DV SXEOLVKHG LQ HQJLQH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO DUH IRU W\SLFDO
DSSOLFDWLRQV
8VLQJ UHFRPPHQGHG RLOV
8VLQJ JRRG IXHO
8VLQJ UHFRPPHQGHG ILOWHUV
8VLQJ LQGXVWU\ VWDQGDUG JRRG PDLQWHQDQFH
SUDFWLFHV
)ROORZLQJ PDLQWHQDQFH LQWHUYDOV DV SXEOLVKHG LQ
HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
0RUH VHYHUH DSSOLFDWLRQV PD\ UHTXLUH VKRUWHQHG RLO
GUDLQ LQWHUYDOV ZKLOH OHVV VHYHUH DSSOLFDWLRQV PD\
DOORZ IRU ORQJHU WKDQ VWDQGDUG RLO GUDLQ LQWHUYDOV +LJK
ORDG IDFWRUV DERYH SDUWLFXODUO\ ZLWK KLJK VXOIXU
IXHOV FDQ FRQWULEXWH VLJQLILFDQWO\ WR UHGXFLQJ RLO GUDLQ
LQWHUYDOV EHORZ VWDQGDUG RLO GUDLQ LQWHUYDOV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
/XEULFDWLQJ *UHDVH
&RQVXOW \RXU &DW GHDOHU UHJDUGLQJ WKH WHVWLQJ WKDW LV
UHTXLUHG LQ HVWDEOLVKLQJ RLO GUDLQ LQWHUYDOV WKDW DUH
RSWLPL]HG IRU \RXU DSSOLFDWLRQ
,Q RUGHU WR KHOS SURWHFW \RXU HQJLQH DQG KHOS
RSWLPL]H RLO GUDLQ LQWHUYDOV IRU HQJLQH DSSOLFDWLRQV DQG
GXW\ F\FOHV XVH&DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV DV
IROORZV
5HFRPPHQGHG DV D VWDQGDUG SUDFWLFH
5HFRPPHQGHG LQ RUGHU WR GHWHUPLQH RLO GUDLQ
LQWHUYDOV ZKHQ XVLQJ IXHO ZLWK VXOIXU OHYHOV
EHWZHHQ SSP DQG SSP
5HTXLUHG LQ RUGHU WR GHWHUPLQH RLO GUDLQ LQWHUYDOV
ZKHQ XVLQJ IXHO ZLWK VXOIXU OHYHOV WKDW DUH DERYH
SSP
1RWH (QJLQH RSHUDWLQJ FRQGLWLRQV SOD\ D NH\ UROH LQ
GHWHUPLQLQJ WKH HIIHFW WKDW IXHO VXOIXU ZLOO KDYH RQ
HQJLQH GHSRVLWV DQG RQ HQJLQH ZHDU &RQVXOW \RXU
&DW GHDOHU IRU JXLGDQFH ZKHQ IXHO VXOIXU OHYHOV DUH
DERYH SSP ,QFUHDVLQJ WKH 2LO &KDQJH ,QWHUYDO
127,&(
5HIHU WR WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
³0DLQWHQDQFH ,QWHUYDO 6FKHGXOH´ IRU WKH SURSHU RLO
GUDLQ LQWHUYDO RI \RXU HQJLQH
7KH WLPH EHWZHHQ RLO FKDQJHV FDQ RQO\ EH LQFUHDVHG
XQGHU WKH IROORZLQJ FRQGLWLRQV
7KH UHVXOWV RI WKH 6ā2ā6 RLO DQDO\VLV LQGLFDWH WKDW
WKH RLO KDV QRW GHWHULRUDWHG DQGRU KDV KLJK
FRQWDPLQDWLRQ OHYHO DV LGHQWLILHG E\ 626
DQDO\VLV
7KH WUHQG OLQHV RI WKH 6ā2ā6 6HUYLFHV RLO DQDO\VLV
SURJUDP LQGLFDWH D FRQVWDQW VORSH WKDW LV VWDEOH
1R DSSDUHQW HQJLQH KHDOWK LVVXHV
2FFDVLRQDO LQVSHFWLRQ RI HQJLQH FRPSRQHQWV GRHV
QRW VKRZ ZHDU FRUURVLRQ RU RWKHU LVVXHV RI
YDULRXV HQJLQH FRPSRQHQWV
2FFDVLRQDO LQVSHFWLRQ RI WKH RLO SDQ RU HQJLQH
FRPSRQHQWV GRHV QRW VKRZ WKH IRUPDWLRQ RI
VOXGJH RU XQXVXDO GHSRVLWV
(QJLQHV RSHUDWLQJ XQGHU VHYHUH FRQGLWLRQV DV
GHILQHG LQ WKH HQJLQH 2ZQLQJ DQG 2SHUDWLQJ
0DQXDO DUH JHQHUDOO\ QRW UHFRPPHQGHG WR H[WHQG
WKH RLO GUDLQ LQWHUYDOV
7KH PD[LPXP LQFUHPHQW IRU LQFUHDVLQJ WKH RLO FKDQJH
LQWHUYDO LV VHUYLFH KRXUV ,OOXVWUDWLRQ LV D
JUDSKLF UHSUHVHQWDWLRQ RI DGMXVWLQJ WKH RLO FKDQJH
LQWHUYDO
,OOXVWUDWLRQ J
[ 1XPEHUV RI RLO FKDQJHV
\ 6HUYLFH KRXUV
,Q ,OOXVWUDWLRQ WKH LQLWLDO RLO FKDQJH ZDV SHUIRUPHG
DIWHU VHUYLFH KRXUV 7KH LQWHUYDO ZDV LQFUHDVHG
LQ KRXU LQFUHPHQWV $W WKH IRXUWK RLO FKDQJH
LQWHUYDO WKH RLO KDG GHWHULRUDWHG DQGRU KDV KLJK
FRQWDPLQDWLRQ OHYHO DV LGHQWLILHG E\ 626 DQDO\VLV
DIWHU VHUYLFH KRXUV 7KHUHIRUH WKH LQWHUYDO ZDV
UHGXFHG WR VHUYLFH KRXUV 7KH UHVXOWV RI WKH RLO
DQDO\VLV DUH DFFHSWDEOH ZKHQ WKH RLO ZDV XVHG IRU
VHUYLFH KRXUV
)ROORZ DOO WKH UHFRPPHQGDWLRQV DQG IROORZ SURSHU
SURFHGXUH SURYLGHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ WR
H[WHQG WKH RLO FKDQJH LQWHUYDO )RU DSSOLFDWLRQV WKDW
DUH H[WHQGLQJ WKH RLO GUDLQ LQWHUYDO VLJQLILFDQWO\ RU WKDW
DUH XQGHU VHYHUH RSHUDWLRQ FRQGLWLRQV LW LV
UHFRPPHQGHG WR LQVSHFW WKH IROORZLQJ FRPSRQHQWV
RQFH SHU \HDU LQ RUGHU WR HQVXUH WKDW WKH ZHDU UDWHV
DUH ZLWKLQ VSHFLILFDWLRQV FDPVKDIW VHJPHQWV
FRQQHFWLQJ URG EHDULQJV F\OLQGHU OLQHUV PDLQ
EHDULQJV DQG SLVWRQV
,I 626 RLO DQDO\VLV DQG RWKHU IDFWRUV DOORZ PD[LPXP
RLO VHUYLFH OLIH IRU GLHVHO IXHOHG HQJLQHV LV KRXUV
0D[LPXP RLO VHUYLFH OLIH IRU KHDY\ IXHO RLO IXHOHG
HQJLQHV LV KRXUV 5HIHU WR WKH LQIRUPDWLRQ
SURYLGHG LQ WKLV 6ā2ā6 DUWLFOH IRU GHWDLOV
L
/XEULFDWLQJ *UHDVH
60&6 &RGH 127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
1RWH 1RQ&DW FRPPHUFLDO JUHDVHV DUH DV D JURXS
VHFRQG FKRLFH JUHDVHV :LWKLQ WKLV JURXSLQJ RI
VHFRQG FKRLFH JUHDVHV WKHUH DUH WLHUHG OHYHOV RI
SHUIRUPDQFH
6(%8
/XEULFDQW 6SHFLILFDWLRQV
/XEULFDWLQJ *UHDVH
127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV DQG JUHDVHV
&DW SURYLGHV YDULRXV JUHDVHV WKDW YDU\ LQ
SHUIRUPDQFH IURP D PRGHUDWH SHUIRUPDQFH WR KLJK
SHUIRUPDQFH 7KHVH JUHDVHV DUH XVHG LQ WKH HQWLUH
OLQH RI &DW SURGXFWV LQ WKH ZLGH YDULHW\ RI FOLPDWHV
WKURXJKRXW WKH ZRUOG )URP WKLV YDULHW\ RI &DW JUHDVH
SURGXFWV \RX FDQ ILQG D &DW JUHDVH WKDW ZLOO PHHW RU
H[FHHG WKH SHUIRUPDQFH UHTXLUHG
%HIRUH VHOHFWLQJ D JUHDVH SURGXFW WKH SHUIRUPDQFH
UHTXLUHPHQWV PXVW EH GHWHUPLQHG &RQVXOW WKH
JUHDVH UHFRPPHQGDWLRQV LQ \RXU 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO $OVR FRQVXOW \RXU &DW GHDOHU
IRU D OLVW RI JUHDVHV WKDW KDYH WKH SHUIRUPDQFH
VSHFLILFDWLRQV DQG WKH DYDLODEOH FRQWDLQHU VL]HV
1RWH $OZD\V FKRRVH JUHDVH WKDW PHHWV RU H[FHHGV
WKH UHFRPPHQGDWLRQV WKDW DUH VSHFLILHG E\ WKH
HTXLSPHQW PDQXIDFWXUHU IRU WKH DSSOLFDWLRQ
6RPH ZRUN VLWHV UHTXLUH WKH XVH RI D VLQJOH JUHDVH WR
IXOOILO WKH QHHGV RI DOO WKH HTXLSPHQW $OZD\V FKRRVH D
JUHDVH WKDW PHHWV RU H[FHHGV WKH UHTXLUHPHQWV RI WKH
PRVW GHPDQGLQJ DSSOLFDWLRQ 5HPHPEHU WKDW WKH
SURGXFWV ZKLFK EDUHO\ PHHW WKH PLQLPXP
SHUIRUPDQFH UHTXLUHPHQWV FDQ EH H[SHFWHG WR
SURGXFH WKH PLQLPXP SDUWV OLIH )DOVH HFRQRP\ LV
EHLQJ XVHG LI D JUHDVH LV SXUFKDVHG ZLWK WKH ORZHVW
FRVW DV WKH RQO\ FRQVLGHUDWLRQ ,QVWHDG XVH WKH
JUHDVH WKDW \LHOGV WKH ORZHVW WRWDO RSHUDWLQJ FRVW 7KLV
FRVW VKRXOG EH EDVHG RQ DQ DQDO\VLV RI WKH FRVWV RI
SDUWV ODERU GRZQWLPH DQG WKH DPRXQW RI JUHDVH WKDW
LV UHTXLUHG
1RWH &HUWDLQ &DW JUHDVH SURGXFWV DUH IRUPXODWHG
ZLWK 0RO\EGHQXP GLVXOILGH 0R6 RU ³0RO\´ 7KH
0RO\ XVHG LQ &DW JUHDVHV LV RI D VSHFLDO XOWUD ILQH
WHFKQLFDO JUDGH 7KH PD[LPXP SDUWLFOH VL]H RI WKH
0RO\ XVHG LQ &DW JUHDVHV LV PLFURQV 7KH W\SLFDO
PHGLDQ VL]H RI WKH 0RO\ LV PLFURQV 7KLV VL]H PHHWV
WKH VSHFLDO UHTXLUHPHQWV RI VRPH UROOLQJ HOHPHQW
EHDULQJV MRLQWV DQG RWKHU PRYLQJ FRPSRQHQWV RI
WLJKW FOHDUDQFHV
1RWH :KHQ WKH JUHDVH LQ D MRLQW LV FKDQJHG IURP RQH
W\SH RI JUHDVH WR DQRWKHU RU D JUHDVH IURP D GLIIHUHQW
VXSSOLHU LV WR EH XVHG &DW UHFRPPHQGV SXUJLQJ DOO RI
WKH ROG JUHDVH IURP WKH MRLQW 6RPH JUHDVHV DUH QRW
FKHPLFDOO\ FRPSDWLEOH &RQVXOW \RXU VXSSOLHU LQ RUGHU
WR GHWHUPLQH LI WKH JUHDVHV DUH FRPSDWLEOH
,I LQ GRXEW 3XUJH
1RWH $OO &DW JUHDVHV DUH ³FKHPLFDOO\´
FRPSDWLEOH ZLWK HDFK RWKHU 0L[LQJ RI &DW
JUHDVHV ZLOO QRW UHVXOW LQ DQ DGYHUVH FKHPLFDO
UHDFWLRQ +RZHYHU PL[LQJ RI &DW JUHDVHV PLJKW
UHVXOW LQ UHGXFHG SHUIRUPDQFH
0RGHUDWH $SSOLFDWLRQV
&DW JUHDVHV WKDW DUH GHYHORSHG IRU PRGHUDWH
DSSOLFDWLRQV DUH PDGH ZLWK D OLWKLXP FRPSOH[
WKLFNHQHU 7KLV W\SH RI JUHDVH LV DSSOLFDEOH IRU
PRGHUDWH DSSOLFDWLRQV RI PHGLXP ORDGV DQG VSHHGV
7KHVH JUHDVHV DUH IRUPXODWHG WR SURYLGH RSWLPDO
SHUIRUPDQFH IRU WKHVH DSSOLFDWLRQV
&DW 0XOWLSXUSRVH *UHDVH
&DW 0XOWLSXUSRVH *UHDVH LV D 1DWLRQDO /XEULFDWLQJ
*UHDVH ,QVWLWXWH 1/*, JUDGH JUHDVH 7KLV JUHDVH
LV PDGH ZLWK SHWUROHXP EDVH RLO DQG D OLWKLXP
FRPSOH[ WKLFNHQHU &DW 0XOWLSXUSRVH *UHDVH LV
IRUPXODWHG IRU XVH LQ DSSOLFDWLRQV WKDW KDYH D ORZ
VHYHULW\ WR D PHGLXP VHYHULW\ DQG PRGHUDWH
WHPSHUDWXUHV
&DW 0XOWLSXUSRVH *UHDVH PHHWV WKH 1/*,
FHUWLILFDWLRQ RI ³*&/%´
1RWH ,I WKH DSSOLFDWLRQ FDOOV IRU D PXOWLSXUSRVH
JUHDVH DQG &DW 0XOWLSXUSRVH *UHDVH LV QRW
DYDLODEOH FRQVXOW WKH JUHDVH GDWD VKHHWV 8VH DQ
DOWHUQDWLYH JUHDVH WKDW PHHWV RU H[FHHGV WKH
SHUIRUPDQFH FKDUDFWHULVWLFV RI &DW 0XOWLSXUSRVH
*UHDVH
&DW :KLWH $VVHPEO\ *UHDVH
&DW :KLWH $VVHPEO\ *UHDVH LV DQ 1/*, JUDGH JUHDVH 7KLV JUHDVH LV PDGH ZLWK D SHWUROHXP EDVH
RLO DQG D OLWKLXP FRPSOH[ WKLFNHQHU &DW :KLWH
$VVHPEO\ *UHDVH LV IRUPXODWHG IRU XVH LQ
DSSOLFDWLRQV WKDW KDYH ORZ WR PHGLXP VHYHULW\ DQG
PRGHUDWH WHPSHUDWXUHV 7KLV JUHDVH KDV EHHQ PDGH
H[WUD WDFN\ LQ RUGHU WR KROG JDVNHWV 2ULQJV DQG
QHHGOH EHDULQJV WR DLG LQ WKH DVVHPEO\ RI HQJLQHV
WUDQVPLVVLRQV DQG RWKHU FRPSRQHQWV
1RWH &DW :KLWH $VVHPEO\ *UHDVH RU DQ\ RWKHU
JUHDVH SURGXFW VKRXOG QRW EH XVHG ZKHQ LQVWDOOLQJ
URG EHDULQJ DQG PDLQ EHDULQJV $Q\ JUHDVH SURGXFW
FDQ KROG GHEULV DQG FDXVH EHDULQJ GDPDJH 2QO\
FOHDQ RLOV VKRXOG EH XVHG ZKHQ LQVWDOOLQJ URG
EHDULQJV DQG PDLQ EHDULQJV
&DW +LJK 6SHHG %DOO %HDULQJ
*UHDVH
&DW +LJK 6SHHG %DOO %HDULQJ *UHDVH LV DQ 1/*,
JUDGH JUHDVH 7KLV JUHDVH LV PDGH ZLWK D
SHWUROHXP EDVH RLO DQG D SRO\XUHD WKLFNHQHU 7KLV
JUHDVH LV UHFRPPHQGHG IRU DSSOLFDWLRQV WKDW XWLOL]H
UROOHU EHDULQJV DQG EDOO EHDULQJV DW ORZ ORDGV WR
PRGHUDWH ORDGV DW KLJK VSHHG 7\SLFDO DSSOLFDWLRQV
IRU WKLV JUHDVH DUH HOHFWULF PRWRUV DOWHUQDWRUV DQG
FRQVWDQW YHORFLW\ &9 MRLQWV IRU DXWRPRWLYH SURGXFWV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
/XEULFDWLQJ *UHDVH
&DW +LJK 6SHHG %DOO %HDULQJ *UHDVH LV IRUPXODWHG
QRW WR FRQWDLQ OHDG DQWLPRQ\ EDULXP ]LQF
SKRVSKRURXV RU FKORULQH DGGLWLYHV 7KHUHIRUH &DW
+LJK 6SHHG %DOO %HDULQJ *UHDVH KDV D ORZHU LPSDFW
RQ WKH HQYLURQPHQW WKDQ PDQ\ RWKHU W\SHV RI JUHDVH
&DW 0XOWLSXUSRVH 0DULQH *UHDVH
&DW 0XOWLSXUSRVH *UHDVH LV D 1DWLRQDO /XEULFDWLQJ
*UHDVH ,QVWLWXWH 1/*, JUDGH JUHDVH 7KLV JUHDVH
LV PDGH ZLWK SHWUROHXP EDVH RLO DQG D FDOFLXP
VXOIRQDWH FRPSOH[ WKLFNHQHU &DW 0XOWLSXUSRVH
0DULQH *UHDVH LV IRUPXODWHG IRU XVH LQ ORZ WR KLJK
VHYHULW\ DQG PRGHUDWH WHPSHUDWXUHV &DW
0XOWLSXUSRVH 0DULQH *UHDVH LV UHFRPPHQGHG IRU XVH
LQ PDQ\ W\SHV RI HTXLSPHQW RSHUDWLQJ LQ FRUURVLYH
DQG ZDWHUUHODWHG HQYLURQPHQWV &DW 0XOWLSXUSRVH
0DULQH *UHDVH DGKHUHV WR VXUIDFHV VWURQJO\ DQG
RIIHUV KLJK FRUURVLRQ UHVLVWDQFH 7KH FRUURVLRQ
UHVLVWDQFH RI WKLV SURGXFW KDV EHHQ SURYHQ E\
SDVVLQJ RYHU KRXUV RI VWDQGDUG VDOW VSUD\
WHVWLQJ
1RWH ,I WKH DSSOLFDWLRQ FDOOV IRU D PXOWLSXUSRVH
PDULQH JUHDVH DQG &DW 0XOWLSXUSRVH 0DULQH *UHDVH
LV QRW DYDLODEOH FRQVXOW WKH JUHDVH GDWD VKHHWV 8VH
DQ DOWHUQDWLYH JUHDVH WKDW PHHWV RU H[FHHGV WKH
SHUIRUPDQFH FKDUDFWHULVWLFV RI &DW 0XOWLSXUSRVH
0DULQH *UHDVH
*UHDVH $SSOLFDWLRQ &KDUWV
7\SH RI *UHDVH
&KDUDFWHULVWLFV RI &DW JUHDVHV DQG DSSOLFDWLRQV
FRQGLWLRQV DUH JLYHQ LQ 7DEOH LQ WKLV FKDSWHU
7KH QRWHV EHORZ SURYLGH DQ H[SODQDWLRQ RI WKH WHUPV
XVHG LQ WKH 7DEOH
6HYHUH $SSOLFDWLRQV DUH ZLWK KHDY\ ORDGV IUHTXHQW
RVFLOODWLRQV DQG KHDY\ VKRFN ORDGV
([WUHPH SUHVVXUH (3 UHIHUV WR %DOO :HOG SRLQW LQ
WKH WHFKQLFDO GDWD VKHHW ³$670 ' ´ 15
1RW 5HFRPPHQGHG
7DEOH 7\SH RI &DW *UHDVH
&DW *UHDVH
1DPH
2SHUDWLQJ
&RQGLWLRQV
2SWLPXP 7HPSHUD
WXUH 5DQJH
1/*,
*UDGH
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH $SSOL
FDWLRQV ZLWK
([WUHPHO\
+HDY\ /RDGV
([WUHPHO\ /RZ WR /RZ WR 0RGHUDWH 0RGHUDWH WR +LJK 0RGHUDWH WR +LJK
/RZ 7HPSV
7HPSV
7HPSV
7HPSV
í & í )
WR í & )
í & í )
WR & )
& ) WR
& )
& ) WR
& )
([WUHPH
6HYHUH
$SSOLFDWLRQV 3UHVVXUH (3
+LJK WR ([
WUHPHO\ +LJK
7HPSV
$QWL:HDU
3URWHFWLRQ
& )
WR &
)
FRQWLQXHG
6(%8
/XEULFDQW 6SHFLILFDWLRQV
/XEULFDWLQJ *UHDVH
7DEOH FRQWG
7\SH RI &DW *UHDVH
&DW *UHDVH
1DPH
1/*,
*UDGH
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH $SSOL
FDWLRQV ZLWK
([WUHPHO\
+HDY\ /RDGV
0XOWLSXUSRVH
*UHDVH
15
15
15
15
15
)DLU
+LJK 6SHHG %DOO
%HDULQJ *UHDVH
15
15
15
15
15
15
0DULQH
0XOWLSXUSRVH
*RRG
([FHOOHQW
([FHOOHQW
([FHOOHQW
*RRG
([FHOOHQW
([WUHPH
6HYHUH
$SSOLFDWLRQV 3UHVVXUH (3
7\SH RI *UHDVH FRQWLQXHG
7KH QRWHV EHORZ SURYLGH DQ H[SODQDWLRQ RI WKH WHUPV
XVHG LQ WKH 7DEOH
3XPSDELOLW\ LV EDVHG RQ ³866 0RELOLW\ DQG /LQFROQ
9HQWPHWHU 7HVWV´ 3HUIRUPDQFH PD\ YDU\ GHSHQGLQJ
RQ OXEULFDWLRQ HTXLSPHQW DQG WKH OHQJWK RI WKH OLQHV
6HUYLFH /LIH UHIHUV WR WKH SHUFHQW RI FKDQJH DIWHU
VWURNHV LQ WHFKQLFDO GDWD VKHHW ³$670 '
´ /RZ HQYLURQPHQWDO LPSDFW PHDQV WKDW WKH JUHDVH LV
QRW IRUPXODWHG WR FRQWDLQ /HDG $QWLPRQ\ %DULXP
=LQF 3KRVSKRURXV RU &KORULQH DGGLWLYHV
&RUURVLRQ SURWHFWLRQ LV WKH UHVLVWDQFH WR VDOW ZDWHU
DQG VDOW VSUD\ ³$670 % ´ :DWHU ZDVKRXW UHVLVWDQFH UHIHUV WR UROO VWDELOLW\ ZLWK
ZDWHU DQG WKH SHUFHQW RI FKDQJH ³$670 ' ´ )RU DGGLWLRQDO SHUIRUPDQFH GDWD RQ WKHVH JUHDVHV
UHIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³5HIHUHQFH 0DWHULDO´
DUWLFOH
7DEOH 7\SH RI &DW *UHDVH
&DW *UHDVH 1DPH
1/*,
*UDGH
2SHUDWLQJ
&RQGLWLRQV
/RZ 7HPS
3XPSDELOLW\
6HUYLFH /LIH
>,Q &HQWUDOL]HG $X
WR/XEH 6\VWHPV@
6KHDU 6WDELOLW\
/RZ (QYLURQ
PHQWDO ,PSDFW
&RUURVLRQ
3URWHFWLRQ
:DWHU :DVKRXW
5HVLVWDQFH
2SWLPXP 7HPSHUD
WXUH 5DQJH
0XOWLSXUSRVH
*UHDVH
DERYH í &
í )
*RRG
1R
)DLU
)DLU
+LJK 6SHHG %DOO
%HDULQJ *UHDVH
DERYH í & )
9HU\ *RRG
1R
*RRG
*RRG
0DULQH 0XOWLSXUSRVH
DERYH í & )
([FHOOHQW
<HV
([FHOOHQW
([FHOOHQW
6(%8
)XHO 6SHFLILFDWLRQV
*HQHUDO )XHO ,QIRUPDWLRQ
)XHO 6SHFLILFDWLRQV
L
*HQHUDO )XHO ,QIRUPDWLRQ
60&6 &RGH 127,&(
(YHU\ DWWHPSW LV PDGH WR SURYLGH DFFXUDWH XSWRGDWH
LQIRUPDWLRQ %\ WKH XVH RI WKLV GRFXPHQW \RX DJUHH
WKDW &DWHUSLOODU ,QF LV QRW UHVSRQVLEOH IRU HUURUV RU
RPLVVLRQV
7KH LQIRUPDWLRQ SURYLGHG DUH WKH ODWHVW
UHFRPPHQGDWLRQV IRU WKH &DW GLHVHO HQJLQHV WKDW DUH
FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ 7KLV LQIRUPDWLRQ
VXSHUVHGHV DOO SUHYLRXV UHFRPPHQGDWLRQV ZKLFK
KDYH EHHQ SXEOLVKHG IRU WKH &DW GLHVHO HQJLQHV WKDW
DUH FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ 6SHFLDO IOXLGV
DUH UHTXLUHG IRU VRPH HQJLQHV DQG FRQWLQXHG ZLOO EH
QHFHVVDU\ 5HIHU WR WKH DSSOLFDEOH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO
7KLV SXEOLFDWLRQ LV D VXSSOHPHQW WR WKH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO 7KLV SXEOLFDWLRQ GRHV QRW
UHSODFH WKH HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDOV
127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
127,&(
,Q RUGHU WR DYRLG SRWHQWLDO GDPDJH WR \RXU &DW PD
FKLQH DQGRU &DW HQJLQH RQO\ SXUFKDVH &DW IOXLGV DQG
&DW ILOWHUV WKURXJK \RXU &DW GHDOHU RU &DW DXWKRUL]HG
RXWOHWV )RU D OLVW RI DXWKRUL]HG &DW SDUWV RXWOHWV LQ
\RXU DUHD FRQVXOW \RXU &DW GHDOHU
,I \RX SXUFKDVH ZKDW DSSHDU WR EH &DW IOXLGV DQG
RU &DW ILOWHUV WKURXJK RWKHU RXWOHWVVRXUFHV \RX
DUH DW D YHU\ KLJK ULVN RI SXUFKDVLQJ FRXQWHUIHLW
³ORRNDOLNH´ SURGXFWV
&RXQWHUIHLW RU ³ORRNDOLNH´ SURGXFWV PD\ YLVXDOO\ DS
SHDU WKH VDPH DV WKH RULJLQDO &DW SURGXFW EXW WKH
SURGXFW SHUIRUPDQFH DQG LQWHUQDO TXDOLW\ ZLOO W\SLFDOO\
EH YHU\ ORZ
&RXQWHUIHLW RU ³ORRNDOLNH´ SURGXFWV KDYH D YHU\ KLJK
OLNHOLKRRG RI FDXVLQJ DQGRU DOORZLQJ HQJLQH DQGRU
PDFKLQH FRPSDUWPHQW GDPDJH
)ROORZ DOO LQGXVWU\ VWDQGDUG VDIHW\ SUDFWLFHV ZKHQ
RSHUDWLQJ HQJLQHV DQGRU PDFKLQHV DQG ZKHQ
SHUIRUPLQJ DOO UHFRPPHQGHG DQGRU UHTXLUHG
PDLQWHQDQFH
1RWH ,QVWUXFWLRQV IRU WKH LQVWDOODWLRQ RI WKH ILOWHU DUH
SULQWHG RQ WKH VLGH RI HDFK &DW VSLQRQ ILOWHU )RU
QRQ&DW ILOWHUV UHIHU WR WKH LQVWDOODWLRQ LQVWUXFWLRQV
WKDW DUH SURYLGHG E\ WKH VXSSOLHU RI WKH ILOWHU
127,&(
,Q RUGHU WR PHHW H[SHFWHG IXHO V\VWHP FRPSRQHQW OLIH
PLFURQ F DEVROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV
UHTXLUHG IRU DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG
ZLWK FRPPRQUDLO IXHO V\VWHPV $OVR PLFURQ F DE
VROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV UHTXLUHG IRU
DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG ZLWK XQLW LQ
MHFWHG IXHO V\VWHPV )RU DOO RWKHU &DW GLHVHO HQJLQHV
PRVWO\ ROGHU HQJLQHV ZLWK SXPS OLQH DQG QR]]OH W\SH
IXHO V\VWHPV WKH XVH RI PLFURQ F DEVROXWH RU OHVV
VHFRQGDU\ IXHO ILOWUDWLRQ LV VWURQJO\ UHFRPPHQGHG
1RWH WKDW DOO FXUUHQW &DW GLHVHO HQJLQHV DUH IDFWRU\
HTXLSSHG ZLWK &DW $GYDQFHG (IILFLHQF\ PLFURQ F
DEVROXWH IXHO ILOWHUV
,Q RUGHU WR REWDLQ DGGLWLRQDO LQIRUPDWLRQ RQ &DW GH
VLJQHG DQG SURGXFHG ILOWUDWLRQ SURGXFWV UHIHU WR WKH
³5HIHUHQFH 0DWHULDO´ DUWLFOH ³)LOWHUV´ DQG ³0LVFHOODQH
RXV´ WRSLFV LQ WKLV 6SHFLDO 3XEOLFDWLRQ &RQVXOW \RXU
&DW GHDOHU IRU DVVLVWDQFH ZLWK ILOWUDWLRQ UHFRPPHQGD
WLRQV IRU \RXU &DW PDFKLQH
127,&(
&DWHUSLOODU GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUP
DQFH RI QRQ&DWHUSLOODU IOXLGV DQG ILOWHUV
*HQHUDO 5HFRPPHQGDWLRQV DQG
*XLGHOLQHV
)ROORZ DOO DSSOLFDEOH LQGXVWU\ VWDQGDUGV DQG DOO
DSSOLFDEOH JRYHUQPHQWDO HQYLURQPHQWDO DQG VDIHW\
JXLGHOLQHV SUDFWLFHV UHJXODWLRQV DQG PDQGDWHV
1RWH 7KHVH JHQHUDO UHFRPPHQGDWLRQV DQG
JXLGHOLQHV FRQFHUQLQJ PDLQWHQDQFH DQG FDUH RI IXHO
DQG IXHO VWRUDJH V\VWHPV DUH QRW LQWHQGHG WR EH DOO
LQFOXVLYH 'LVFXVV SURSHU IXHO VDIHW\ DQG KHDOWK
KDQGOLQJ DQG PDLQWHQDQFH SUDFWLFHV ZLWK \RXU
IXHO VXSSOLHU 8VH RI WKHVH JHQHUDO
UHFRPPHQGDWLRQV DQG JXLGHOLQHV GRHV QRW OHVVHQ WKH
HQJLQH RZQHUV DQGRU IXHO VXSSOLHU UHVSRQVLELOLW\ $OO
LQGXVWU\ VWDQGDUG SUDFWLFHV IRU IXHO VWRUDJH DQG IRU
IXHO KDQGOLQJ PXVW EH IROORZHG
1RWH :KHUH UHFRPPHQGDWLRQV IRU GUDLQLQJ ZDWHU
DQGRU VHGLPHQW DQGRU GHEULV DUH VWDWHG GLVSRVH RI
WKLV ZDVWH DFFRUGLQJ WR DOO DSSOLFDEOH UHJXODWLRQV DQG
PDQGDWHV
1RWH &DW ILOWHUV DUH GHVLJQHG DQG EXLOW WR SURYLGH
RSWLPDO SHUIRUPDQFH DQG SURWHFWLRQ RI WKH IXHO V\VWHP
FRPSRQHQWV
6(%8
)XHO 6SHFLILFDWLRQV
*HQHUDO )XHO ,QIRUPDWLRQ
'LVFXVV DSSOLFDWLRQVSHFLILF IXHO FRQFHUQV QHHGV
DQG UHTXLUHPHQWV ZLWK D UHSXWDEOH IXHO VXSSOLHU
3XUFKDVH IXHO IURP D UHSXWDEOH VXSSOLHU
8VH IXHO WKDW PHHWV RU H[FHHGV &DW UHTXLUHPHQWV
IRU GLVWLOODWH GLHVHO IXHO 5HIHU WR WKH ³&DW
6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 1RQURDG
'LHVHO (QJLQHV´ WDEOH LQ WKLV 6SHFLDO 3XEOLFDWLRQ
³'LVWLOODWH 'LHVHO )XHO´ DUWLFOH
&RQILUP ZLWK WKH ILOWHU PDQXIDFWXUHU WKDW WKH IXHO
ILOWHUILOWHUV WR EH XVHG DUH FRPSDWLEOH ZLWK WKH IXHO
W\SH WKDW ZLOO EH ILOWHUHG
)ROORZ DOO WKH ³&RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV IRU )XHOV´ WKDW DUH SURYLGHG LQ
WKLV FKDSWHU 'LVSHQVH IXHOV RI ³,62 ´
FOHDQOLQHVV OHYHO RU FOHDQHU LQWR WKH PDFKLQH RU
HQJLQH IXHO WDQN DV GHWDLOHG LQ WKH ³&RQWDPLQDWLRQ
&RQWURO 5HFRPPHQGDWLRQV´ VHFWLRQ
)ROORZ DOO LQGXVWU\ VWDQGDUG JURXQGLQJ DQG RWKHU
VDIHW\ SUDFWLFHV
7HVW IRU PLFURELDO FRQWDPLQDWLRQ RQ D UHJXODU EDVLV
DQG WDNH SURSHU FRUUHFWLYH DFWLRQ LI FRQWDPLQDWLRQ
LV SUHVHQW 3URSHUO\ GLVSRVH RI FOHDQXS ZDVWH
DFFRUGLQJ WR DOO DSSOLFDEOH UHJXODWLRQV DQG
PDQGDWHV
(YHU\ PRQWKV RU VRRQHU LI SUREOHPV DUH
VXVSHFWHG KDYH D FRPSOHWH DQDO\VLV RI WKH EXON
VWRUDJH IXHO SHU WKH ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH
'LHVHO )XHO IRU 1RQURDG 'LHVHO (QJLQHV´ WDEOH LQ
WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO )XHO´
DUWLFOH 7DNH FRUUHFWLYH DFWLRQ LI QHFHVVDU\
&RUUHFWLYH DFWLRQV PD\ LQFOXGH WUHDWLQJ WKH IXHO
FOHDQLQJ RI WKH IXHO VWRUDJH WDQNV\VWHP DQG
UHSODFLQJ WKH SUREOHPDWLF IXHO ZLWK IUHVK IXHO
.HHS WKH IXHO VWRUDJH WDQN FOHDQ RI ZDWHU GHEULV
DQG VHGLPHQW
'UDLQ ZDWHU DQG VHGLPHQW IURP WKH IXHO VWRUDJH
WDQN ZHHNO\ 'UDLQ ZDWHU DQG VHGLPHQW EHIRUH WKH
WDQN LV UHILOOHG
.HHS WKH DUHD DURXQG WKH IXHO WDQN ILOOHU QHFN FOHDQ
RI GHEULV LQ RUGHU WR SUHYHQW FRQWDPLQDWLRQ RI WKH
IXHO WDQN
,QVWDOO IXHOZDWHU VHSDUDWRUV DW WKH EXON VWRUDJH
IXHO WDQN GLVSHQVLQJ SRLQW DQG LQVWDOO IXHOZDWHU
VHSDUDWRUV RQ WKH HQJLQH :LUH PHVK PHGLD LV
127 UHFRPPHQGHG
'UDLQ WKH ZDWHU IURP WKH IXHOZDWHU VHSDUDWRUV
GDLO\
&DW $GYDQFHG (IILFLHQF\ IXHO ILOWHUV DUH UHTXLUHG
IRU GLVWLOODWH IXHOHG GLHVHO HQJLQHV LQ RUGHU WR
SURYLGH PD[LPXP OLIH WR WKH IXHO V\VWHP
&KDQJH IXHO ILOWHUV DW WKH VFKHGXOHG LQWHUYDO 1HYHU
ILOO WKH QHZ VHFRQGDU\ IXHO ILOWHU ZLWK IXHO EHIRUH
LQVWDOODWLRQ 8VH WKH IXHO SULPLQJ SXPS WR UHPRYH
DLU IURP WKH V\VWHP
,QVWDOO DQG SURSHUO\ PDLQWDLQ IRXU PLFURQ F
DEVROXWH EUHDWKHU ILOWHUV RQ WKH HQJLQH IXHO WDQN
YHQW ,QVWDOO DQG SURSHUO\ PDLQWDLQ IRXU PLFURQ F
DEVROXWH EUHDWKHU ILOWHUV RQ WKH EXON VWRUDJH IXHO
WDQN YHQW 'HVLFFDQW W\SH EUHDWKHU YHQW ILOWHUV DUH
DOVR UHFRPPHQGHG LQ RUGHU WR UHPRYH PRLVWXUH
IURP DLU HQWHULQJ WKH IXHO WDQN %UHDWKHU ILOWHUV DUH
W\SLFDOO\ FKDQJHG HYHU\ PRQWKV DQG GHVLFFDQW
W\SH EUHDWKHU ILOWHUV DUH W\SLFDOO\ FKDQJHG RQ
VDWXUDWLRQ 5HIHU WR WKH OLWHUDWXUH WKDW ZDV LQFOXGHG
ZLWK WKH ILOWHU 'LVFXVV WKH DYDLODELOLW\ RI GHVLFFDQW
EUHDWKHU YHQW ILOWHUV IRU \RXU DSSOLFDWLRQ ZLWK \RXU
ILOWHU VXSSOLHU
7RS RII IL[HG URRI IXHO WDQNV DV RIWHQ DV SUDFWLFDO
.HHSLQJ WKH WDQN IXOO UHGXFHV WKH DPRXQW RI
FRQGHQVDWLRQ JHQHUDWHG ZDWHU
3URWHFW IXHO WDQNV IURP GLUW DQG ZDWHU HQWU\
127,&(
'R QRW DGG QHZ HQJLQH RLO ZDVWH HQJLQH RLO RU DQ\ RLO
SURGXFW WR WKH IXHO XQOHVV WKH HQJLQH LV GHVLJQHG DQG
FHUWLILHG WR EXUQ GLHVHO HQJLQH RLO IRU H[DPSOH &DWHU
SLOODU256 GHVLJQHG IRU ODUJH HQJLQHV &DWHUSLOODU H[
SHULHQFH KDV VKRZQ WKDW DGGLQJ RLO SURGXFWV WR 7LHU HQJLQH IXHOV 8 6 (3$ 7LHU FHUWLILHG WR (852
6WDJH ,,% DQG ,9 FHUWLILHG HQJLQH IXHOV RU WR WKH IXHOV
RI HQJLQHV HTXLSSHG ZLWK H[KDXVW DIWHUWUHDWPHQW GHYL
FHV ZLOO JHQHUDOO\ FDXVH WKH QHHG IRU PRUH IUHTXHQW
DVK VHUYLFH LQWHUYDOV DQGRU FDXVH ORVV RI
SHUIRUPDQFH
$V UHTXLUHG FOHDQ WKH LQVLGH RI WKH HQJLQH IXHO
WDQN DQG WKH LQVLGH RI WKH EXON VWRUDJH IXHO WDQN
$GGLQJ RLO SURGXFWV WR WKH IXHO PD\ UDLVH WKH VXOIXU
OHYHO RI WKH IXHO DQG PD\ FDXVH IRXOLQJ RI WKH IXHO V\V
WHP DQG ORVV RI SHUIRUPDQFH
'UDLQ ZDWHU DQG VHGLPHQW IURP WKH HQJLQH IXHO
WDQN GDLO\ 'UDLQ ZDWHU DQG VHGLPHQW IURP WKH WDQN
DW WKH VWDUW RI HDFK VKLIW $IWHU WKH IXHO WDQN KDV
EHHQ ILOOHG DOORZ WKH IXHO WR VHWWOH IRU PLQXWHV
7KH ZDWHU DQG VHGLPHQW ZLOO VHSDUDWH IURP WKH
IXHO 7KHQ GUDLQ WKH ZDWHU DQG VHGLPHQW IURP WKH
WDQN
1RWH &DW KDV IRXU GLIIHUHQW VL]H FRDOHVFHU W\SH IXHO
ILOWHUV DYDLODEOH IRU EXON VWRUDJH IXHO WDQN DSSOLFDWLRQV
WKDW ILOWHU ERWK GLUW DQG ZDWHU 7KH ILOWHU HOHPHQWV DUH
UDWHG DW IRXU PLFURQV F DEVROXWH &RQVXOW \RXU &DW
GHDOHU IRU LQIRUPDWLRQ RQ WKH FRDOHVFHU ILOWHUV
DYDLODEOH WKURXJK &DW
6(%8
)XHO 6SHFLILFDWLRQV
)XHO ,QIRUPDWLRQ IRU 'LHVHO (QJLQHV
1RWH 7KH IXHO VWRUDJH WDQNV PXVW EH FOHDQHG
WKRURXJKO\ EHIRUH FRQYHUWLQJ WR 8OWUD /RZ 6XOIXU
'LHVHO 8/6' SSP RU OHVV VXOIXU DQGRU
ELRGLHVHOELRGLHVHO EOHQGV &RQYHUVLRQ WR 8/6' DQG
RU ELRGLHVHOELRGLHVHO EOHQGV FDQ ORRVHQ IXHO V\VWHP
DQG IXHO VWRUDJH WDQN GHSRVLWV %XON WDQN FRQWLQXRXV
ILOWUDWLRQ XQLW DQG GLVSHQVLQJ SRLQW ILOWHUV DQG RQERDUG
HQJLQH ILOWHUV FKDQJH LQWHUYDOV VKRXOG EH VKRUWHQHG WR
DOORZ IRU WKLV FOHDQLQJ HIIHFW
1RWH &DW VWURQJO\ UHFRPPHQGV WKH ILOWUDWLRQ RI
GLVWLOODWH GLHVHO IXHO DQGRU ELRGLHVHOELRGLHVHO EOHQGV
WKURXJK D ILOWHU ZLWK D UDWLQJ RI IRXU PLFURQV F
DEVROXWH RU OHVV 7KLV ILOWUDWLRQ VKRXOG EH ORFDWHG RQ
WKH GHYLFH WKDW GLVSHQVHV WKH IXHO WR WKH IXHO WDQN IRU
WKH HQJLQH $OVR ILOWHU WKH IXHO IURP WKH EXON VWRUDJH
WDQN 6HULHV ILOWUDWLRQ LV UHFRPPHQGHG
1RWH )ROORZ DOO IXHO VWRUDJH PDLQWHQDQFH SUDFWLFHV
WKDW DUH UHOHYDQW WR \RXU DSSOLFDWLRQ &DW UHFRPPHQGV
D PD[LPXP RI \HDU IURP SURGXFWLRQ IRU GLVWLOODWH IXHO
VWRUDJH $ PD[LPXP RI PRQWKV IURP SURGXFWLRQ IRU
ELRGLHVHO DQG EOHQGHG ELRGLHVHO VWRUDJH LV
UHFRPPHQGHG 6WRUDJH OLIH IRU ELRGLHVHO DQG
ELRGLHVHO EOHQGV WKDW DUH JUHDWHU WKDQ % PD\ EH
PXFK VKRUWHU WKDQ PRQWKV
L
)XHO ,QIRUPDWLRQ IRU 'LHVHO
(QJLQHV
60&6 &RGH 127,&(
86 (3$ UHJXODWLRQV UHTXLUH WKH XVH RI 8OWUD /RZ 6XO
IXU 'LHVHO IXHO 8/6' SHUFHQW SSP
PJNJ VXOIXU IRU QRQURDG DQG VWDWLRQDU\ 7LHU (3$
FHUWLILHG HQJLQHV XVLQJ IXHO VHQVLWLYH WHFKQRORJLHV
VXFK DV 6&5 V\VWHPV DQG SDUWLFXODWH ILOWHUV )XHOV
RWKHU WKDQ 8/6' FDQ FDXVH GDPDJH LQ WKRVH HQJLQHV
DQG VKRXOG QRW EH XVHG
&RQVXOW WKH 8 6 (3$ IRU IXHO VXOIXU UHJXODWLRQV DQG
IRU WKH 8/6' SRLQW RI VDOHV UHTXLUHG GDWHV IRU YDULRXV
QRQURDG DSSOLFDWLRQV
(XURSHDQ VXOIXU IUHH IXHO SHUFHQW SSP
PJNJ VXOIXU IXHO LV UHTXLUHG E\ UHJXODWLRQ IRU XVH LQ
HQJLQHV FHUWLILHG WR (8 QRQURDG 6WDJH ,,,% DQG QHZHU
VWDQGDUGV DQG WKDW DUH HTXLSSHG ZLWK H[KDXVW DIWHU
WUHDWPHQW V\VWHPV
&HUWDLQ JRYHUQPHQWVORFDOLWLHV DQGRU DSSOLFDWLRQV
0$< UHTXLUH WKH XVH RI 8/6' IXHO &RQVXOW IHGHUDO
VWDWH DQG ORFDO DXWKRULWLHV IRU JXLGDQFH RQ IXHO UH
TXLUHPHQWV IRU \RXU DUHD
7\SLFDO DIWHUWUHDWPHQW V\VWHPV LQFOXGH 'LHVHO 3DUWLFX
ODWH )LOWHUV '3) 'LHVHO 2[LGDWLRQ &DWDO\VWV '2& 6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 DQGRU /HDQ
12[ 7UDSV /17 2WKHU V\VWHPV PD\ DSSO\
/RZ VXOIXU GLHVHO /6' IXHO SSP PJNJ VXO
IXU LV VWURQJO\ UHFRPPHQGHG IRU XVH LQ HQJLQHV WKDW
DUH SUH7LHU PRGHOV ZKLOH GLHVHO IXHO ZLWK ! SSP
VXOIXU LV DFFHSWDEOH IRU XVH LQ DUHDV RI WKH ZRUOG
ZKHUH DOORZHG E\ ODZ 3UH7LHU HQJLQHV WKDW DUH
HTXLSSHG ZLWK D 'LHVHO 2[LGDWLRQ &DWDO\VW '2& UH
TXLUH WKH XVH RI /6' IXHO RU 8/6' IXHO
8/6' IXHO RU VXOIXUIUHH GLHVHO IXHO DUH DFFHSWDEOH LQ
DOO HQJLQHV UHJDUGOHVV RI WKH HQJLQH 86 (3$ 7LHU RU
(8 6WDJH UHTXLUHPHQWV
8VH DSSURSULDWH OXEULFDWLQJ RLOV WKDW DUH FRPSDWLEOH
ZLWK WKH HQJLQH FHUWLILFDWLRQ DQG DIWHUWUHDWPHQW V\V
WHP DQG ZLWK WKH IXHO VXOIXU OHYHOV 5HIHU WR WKH ³'LHVHO
)XHO 6XOIXU ,PSDFWV´ DUWLFOH RI WKLV ³)XHOV 6SHFLILFD
WLRQV´ VHFWLRQ DQG WR WKH ³/XEULFDQWV 6SHFLILFDWLRQV´
VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
6(%8
)XHO 6SHFLILFDWLRQV
)XHO ,QIRUPDWLRQ IRU 'LHVHO (QJLQHV
7KH WZR EDVLF W\SHV RI GLVWLOODWH GLHVHO IXHO DUH 1R GLHVHO IXHO DQG 1R GLHVHO IXHO 1R GLHVHO IXHO LV
WKH PRVW FRPPRQO\ DYDLODEOH VXPPHU JUDGH GLHVHO
IXHO 1R GLHVHO IXHO LV D ZLQWHU JUDGH GLHVHO IXHO
'XULQJ WKH ZLQWHU PRQWKV IXHO VXSSOLHUV ZLOO W\SLFDOO\
EOHQG 1R DQG 1R GLHVHO IXHO LQ YDULRXV
SHUFHQWDJHV %OHQGLQJ DOORZV WKH IXHO WR PHHW WKH
KLVWRULFDO ORZ DPELHQW WHPSHUDWXUH FROGIORZ QHHGV
IRU D JLYHQ DUHD RU UHJLRQ 1R GLHVHO IXHO LV D
KHDYLHU GLHVHO IXHO WKDQ 1R GLHVHO IXHO ,Q FROG
ZHDWKHU KHDYLHU IXHOV FDQ FDXVH SUREOHPV ZLWK IXHO
ILOWHUV IXHO OLQHV IXHO WDQNV DQG IXHO VWRUDJH +HDYLHU
GLHVHO IXHOV VXFK DV 1R GLHVHO IXHO FDQ EH XVHG LQ
GLHVHO HQJLQHV WKDW RSHUDWH LQ FROG WHPSHUDWXUHV ZLWK
DQ DSSURSULDWH DPRXQW RI D SURYHQ SRXU SRLQW
GHSUHVVDQW DGGLWLYH )RU PRUH LQIRUPDWLRQ RQ IXHOV
ZKLFK LQFOXGH EOHQGV RI 1R DQG 1R GLHVHO IXHO
FRQVXOW \RXU IXHO VXSSOLHU
:KHQ \RX XVH 1R GLHVHO IXHO RU RWKHU KHDYLHU IXHOV
VRPH RI WKH IXHO FKDUDFWHULVWLFV PD\ LQWHUIHUH ZLWK
VXFFHVVIXO FROGZHDWKHU RSHUDWLRQ $GGLWLRQDO
LQIRUPDWLRQ DERXW WKH FKDUDFWHULVWLFV RI GLHVHO IXHO LV
DYDLODEOH 7KLV LQIRUPDWLRQ FRQWDLQV D GLVFXVVLRQ RQ
WKH PRGLILFDWLRQ WR WKH FKDUDFWHULVWLFV RI GLHVHO IXHO
7KHUH DUH VHYHUDO SRVVLEOH PHWKRGV WKDW FDQ EH XVHG
WR FRPSHQVDWH IRU WKH IXHO TXDOLWLHV WKDW PD\ LQWHUIHUH
ZLWK FROGZHDWKHU RSHUDWLRQ 7KHVH PHWKRGV LQFOXGH
WKH XVH RI VWDUWLQJ DLGV HQJLQH FRRODQW KHDWHUV IXHO
KHDWHUV DQG GHLFHUV ,Q DGGLWLRQ WKH PDQXIDFWXUHU RI
WKH IXHO FDQ DGG FROG IORZ LPSURYHUV DQGRU EOHQG 1R
DQG 1R GLHVHO LQ YDULRXV SHUFHQWDJHV
1RW DOO DUHDV RI WKH ZRUOG FODVVLI\ GLHVHO IXHO XVLQJ WKH
1R DQG 1R QRPHQFODWXUH GHVFULEHG DERYH %XW
WKH EDVLF SULQFLSOHV RI XVLQJ DGGLWLYHV DQGRU EOHQGLQJ
IXHOV RI GLIIHUHQW GHQVLWLHV DUH WKH VDPH
6WDUWLQJ $LGV
7KH XVH RI D VWDUWLQJ DLG LV D FRQYHQWLRQDO PHWKRG RI
DVVLVWDQFH IRU FROG VWDUWV LQ ORZ WHPSHUDWXUH
FRQGLWLRQV 9DULRXV VWDUWLQJ DLGV DUH DYDLODEOH IRU &DW
HQJLQHV )ROORZ WKH UHFRPPHQGDWLRQV WKDW DUH
SURYLGHG E\ WKH PDQXIDFWXUHU RI WKH VWDUWLQJ DLG
5HIHU WR WKH IRUHZRUG VHFWLRQ LQ WKLV 6SHFLDO
3XEOLFDWLRQ ³$IWHUPDUNHW 3URGXFWV DQG :DUUDQW\´
DUWLFOH
(QJLQH &RRODQW +HDWHUV
7KHVH KHDWHUV KHDW WKH HQJLQH FRRODQW 7KH KHDWHG
FRRODQW IORZV WKURXJK WKH F\OLQGHU EORFN 7KH IORZ RI
KHDWHG FRRODQW NHHSV WKH HQJLQH ZDUP $ ZDUP
HQJLQH LV HDVLHU WR VWDUW LQ FROG ZHDWKHU 0RVW FRRODQW
KHDWHUV XVH HOHFWULFDO SRZHU $ VRXUFH RI HOHFWULFLW\ LV
QHFHVVDU\ IRU WKLV W\SH RI KHDWHU 2WKHU KHDWHUV WKDW
EXUQ IXHO DUH DYDLODEOH DV D VRXUFH RI KHDW 7KHVH
KHDWHUV PD\ EH XVHG LQ SODFH RI WKH HOHFWULFDO
KHDWHUV
:LWK HLWKHU W\SH RI KHDWHU VWDUWLQJ DLGV DQGRU IXHOV
ZLWK KLJKHU FHWDQH QXPEHUV DUH OHVV LPSRUWDQW
EHFDXVH WKH HQJLQH LV ZDUP 3UREOHPV ZLWK IXHO FORXG
SRLQW FDQ FDXVH WKH SOXJJLQJ RI IXHO ILOWHUV 3UREOHPV
ZLWK IXHO FORXG SRLQW FDQQRW EH FRUUHFWHG E\ HQJLQH
FRRODQW KHDWHUV 6RPH IXHO ILOWHUV DUH FRROHG E\ DLU
IORZ GXULQJ RSHUDWLRQ
)XHO +HDWHUV
7KH IXHO FORXG SRLQW LV UHODWHG WR SUREOHPV ZLWK IXHO
ILOWHUV 7KH IXHO KHDWHU KHDWV WKH IXHO DERYH WKH FORXG
SRLQW EHIRUH WKH IXHO HQWHUV WKH IXHO ILOWHU +HDWLQJ
SUHYHQWV ZD[ IURP EORFNLQJ WKH ILOWHU )XHO FDQ IORZ
WKURXJK SXPSV DQG OLQHV DW WHPSHUDWXUHV EHORZ WKH
FORXG SRLQW 7KH FORXG SRLQW LV RIWHQ DERYH WKH SRXU
SRLQW RI D IXHO :KLOH WKH IXHO FDQ IORZ WKURXJK WKHVH
OLQHV WKH ZD[ LQ WKH IXHO FDQ VWLOO SOXJ WKH IXHO ILOWHU
,Q VRPH HQJLQH LQVWDOODWLRQV VPDOO PRGLILFDWLRQV FDQ
SUHYHQW SUREOHPV WKDW DUH FDXVHG E\ WKH FORXG SRLQW
2QH RI WKH IROORZLQJ FKDQJHV FDQ SUHYHQW SUREOHPV LQ
PDQ\ FRQGLWLRQV D FKDQJH LQ WKH ORFDWLRQ RI IXHO
ILOWHUV DQGRU VXSSO\ OLQHV DQG WKH DGGLWLRQ RI
LQVXODWLRQ ,Q H[WUHPH WHPSHUDWXUHV KHDWLQJ RI WKH
IXHO PD\ EH UHTXLUHG WR SUHYHQW WKH ILOWHUV IURP
SOXJJLQJ 7KHUH DUH VHYHUDO W\SHV RI IXHO KHDWHUV WKDW
DUH DYDLODEOH 7KH KHDWHUV W\SLFDOO\ XVH HLWKHU HQJLQH
FRRODQW RU H[KDXVW JDV DV D KHDW VRXUFH 7KHVH
V\VWHPV PD\ SUHYHQW ILOWHU ZD[LQJ SUREOHPV ZLWKRXW
WKH XVH RI GHLFHUV RU FROG IORZ LPSURYHUV 7KHVH
V\VWHPV PD\ EH LQHIIHFWLYH ZKHQ WKH IXHO FRQWDLQV D
ODUJH DPRXQW RI GLUW RU RI ZDWHU 8VH RI D IXHO KHDWHU
FDQ KHOS HOLPLQDWH VRPH FROGZHDWKHU SUREOHPV $
IXHO KHDWHU VKRXOG EH LQVWDOOHG VR WKDW WKH IXHO LV
KHDWHG EHIRUH IORZLQJ LQWR WKH IXHO ILOWHU
1RWH $ IXHO KHDWHU LV QRW HIIHFWLYH IRU FROGVRDNHG
VWDUWV XQOHVV WKH IXHO KHDWHU FDQ EH SRZHUHG IURP DQ
H[WHUQDO SRZHU VRXUFH ([WHUQDO IXHO OLQHV PD\ UHTXLUH
WKH XVH RI KHDWHUV WKDW FLUFXODWH WKH IXHO
1RWH 2QO\ XVH SURSHUO\ VL]HG IXHO KHDWHUV WKDW DUH
FRQWUROOHG E\ WKHUPRVWDWV RU XVH IXHO KHDWHUV WKDW DUH
VHOIUHJXODWHG 7KHUPRVWDWLFDOO\ FRQWUROOHG IXHO
KHDWHUV JHQHUDOO\ KHDW IXHO WR & ) 'R QRW
XVH IXHO KHDWHUV LQ ZDUP WHPSHUDWXUHV
)RU GLVWLOODWH IXHO FRQILJXUHG HQJLQHV &DW
UHFRPPHQGV D IXHO YLVFRVLW\ DV GHOLYHUHG WR URWDU\
IXHO LQMHFWLRQ SXPSV RI EHWZHHQ F6W DQG F6W
)RU DOO RWKHU IXHO LQMHFWLRQ SXPSV WKH YLVFRVLW\ PXVW
EH EHWZHHQ F6W DQG F6W
1RWH ,I D IXHO ZLWK D ORZ YLVFRVLW\ LV XVHG FRROLQJ RI
WKH IXHO PD\ EH UHTXLUHG WR PDLQWDLQ F6W RU
JUHDWHU YLVFRVLW\ DW WKH IXHO LQMHFWLRQ SXPS )XHOV ZLWK
D KLJK YLVFRVLW\ PLJKW UHTXLUH IXHO KHDWHUV LQ RUGHU WR
ORZHU WKH YLVFRVLW\ WR WKH SURSHU OHYHO
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
127,&(
:KHQ \RX XVH IXHO KHDWHUV GR QRW DOORZ WKH IXHO WHP
SHUDWXUH WR UHDFK DERYH & ) 1HYHU H[FHHG
& ) ZLWK VWUDLJKW GLVWLOODWH IXHO 7KH KLJK IXHO
WHPSHUDWXUHV DIIHFW WKH IXHO YLVFRVLW\ :KHQ WKH IXHO
YLVFRVLW\ IDOOV EHORZ F6W SXPS GDPDJH PD\
RFFXU
2YHUKHDWLQJ WKH IXHO RU WKH IXHO ILOWHU FDQ UHVXOW LQ
SHUVRQDO LQMXU\ DQGRU GDPDJH WR WKH HQJLQH 8VH
H[WUHPH FDUH DQG FDXWLRQ IRU KHDWLQJ RI WKH IXHO
DQGRU WKH IXHO ILOWHU
6HOHFW D IXHO KHDWHU WKDW LV PHFKDQLFDOO\ VLPSOH \HW
DGHTXDWH IRU WKH DSSOLFDWLRQ 7KH IXHO KHDWHU VKRXOG
DOVR SUHYHQW RYHUKHDWLQJ RI WKH IXHO 'LVFRQQHFW WKH
IXHO KHDWHU RU GHDFWLYDWH WKH IXHO KHDWHU LQ ZDUP
ZHDWKHU $Q XQDFFHSWDEOH ORVV RI IXHO YLVFRVLW\ DQG
HQJLQH SRZHU ZLOO RFFXU LI WKH IXHO VXSSO\ WHPSHUDWXUH
LV DOORZHG WR EHFRPH WRR KRW
)RU DGGLWLRQDO LQIRUPDWLRQ RQ IXHO KHDWHUV FRQVXOW
\RXU &DW GHDOHU
'HLFHUV
'HLFHUV ORZHU WKH IUHH]LQJ SRLQW RI WKH PRLVWXUH LQ
WKH IXHO 'HLFHUV DUH QRW QHHGHG ZKHQ IXHO KHDWHUV
DUH XVHG ,I \RX H[SHULHQFH WURXEOH FRQVXOW \RXU IXHO
VXSSOLHU IRU UHFRPPHQGDWLRQV RI D FRPSDWLEOH
FRPPHUFLDO GHLFHU
L
&KDUDFWHULVWLFV RI 'LHVHO )XHO
60&6 &RGH 9LVFRVLW\
7KH YLVFRVLW\ RI WKH IXHO LV VLJQLILFDQW EHFDXVH WKH IXHO
VHUYHV DV D OXEULFDQW IRU IXHO V\VWHP FRPSRQHQWV
)XHOV QHHG WR KDYH VXIILFLHQW YLVFRVLW\ 7KH IXHO PXVW
OXEULFDWH WKH IXHO V\VWHP LQ ERWK H[WUHPHO\ FROG DQG LQ
H[WUHPHO\ KRW WHPSHUDWXUHV ,I WKH NLQHPDWLF YLVFRVLW\
RI WKH IXHO LV ORZHU WKDQ F6W DV VXSSOLHG WR WKH IXHO
LQMHFWLRQ SXPS RU XQLW LQMHFWRUV H[FHVVLYH VFXIILQJ
DQG VHL]XUH FDQ RFFXU
)RU GLVWLOODWH IXHO FRQILJXUHG HQJLQHV &DW
UHFRPPHQGV D IXHO YLVFRVLW\ DV GHOLYHUHG WR URWDU\
IXHO LQMHFWLRQ SXPSV RI EHWZHHQ F6W DQG F6W
DQG EHWZHHQ F6W DQG F6W IRU DOO RWKHU IXHO
LQMHFWLRQ SXPSV
,I D IXHO ZLWK D ORZ YLVFRVLW\ LV XVHG FRROLQJ RI WKH IXHO
PD\ EH UHTXLUHG WR PDLQWDLQ F6W RU JUHDWHU
YLVFRVLW\ DW WKH IXHO LQMHFWLRQ SXPS )XHOV ZLWK D KLJK
YLVFRVLW\ PLJKW UHTXLUH KHDWHUV WR ORZHU WKH YLVFRVLW\
WR HLWKHU F6W RU OHVV IRU URWDU\ IXHO LQMHFWLRQ SXPSV
RU F6W RU OHVV IRU DOO RWKHU IXHO LQMHFWLRQ SXPSV
&HWDQH 1XPEHU
7KH FHWDQH QXPEHU RI WKH IXHO HIIHFWV WKH DELOLW\ RI WKH
HQJLQH WR VWDUW $OVR WKH FHWDQH QXPEHU HIIHFWV WKH
LQWHUYDO RI WLPH EHIRUH WKH HQJLQH UXQV VPRRWKO\
*HQHUDOO\ DQ LQFUHDVH RI WHQ LQ WKH FHWDQH QXPEHU
ZLOO DOORZ WKH HQJLQH WR EH VWDUWHG DW D ORZHU
WHPSHUDWXUH 7KH VWDUWLQJ WHPSHUDWXUH FDQ EH
LPSURYHG DSSUR[LPDWHO\ WR & WR ) IRU
HYHU\ LQFUHDVH RI WHQ LQ WKH FHWDQH QXPEHU $IWHU WKH
HQJLQH UHDFKHV WKH QRUPDO RSHUDWLQJ WHPSHUDWXUH D
FKDQJH LQ WKH FHWDQH IURP WR ZLOO KDYH D
PLQLPDO HIIHFW RQ HQJLQH SHUIRUPDQFH
0RVW IXHOV WKDW KDYH D FHWDQH QXPEHU DERYH ZLOO
SHUPLW DFFHSWDEOH HQJLQH VWDUWV LQ ZDUPHU RXWVLGH
WHPSHUDWXUHV 7KH HQJLQH ZLOO VWDUW VDWLVIDFWRULO\ ZLWK
WKLV IXHO ZKHQ WKH HQJLQH LV NHSW ZDUP 7KH HQJLQH
FDQ EH NHSW ZDUP E\ XVLQJ HLWKHU D KHDWHG HQFORVXUH
RU D SURSHUO\ VL]HG FRRODQW KHDWHU
'XULQJ DYHUDJH VWDUWLQJ FRQGLWLRQV GLUHFW LQMHFWLRQ
GLHVHO HQJLQHV UHTXLUH D PLQLPXP FHWDQH QXPEHU RI
$ KLJKHU FHWDQH YDOXH PD\ EH UHTXLUHG IRU
RSHUDWLRQ LQ KLJK DOWLWXGHV RU IRU FROGZHDWKHU
RSHUDWLRQ 7KH PLQLPXP IXHO FHWDQH QXPEHU WKDW LV
UHTXLUHG IRU WKH SUHFRPEXVWLRQ FKDPEHU 3& GLHVHO
HQJLQH LV 0RGLI\LQJ WKH &HWDQH 1XPEHU
7KH FHWDQH QXPEHU RI D IXHO FDQ EH FKDQJHG LI WKH
IXHO LV PL[HG ZLWK D IXHO WKDW KDV D GLIIHUHQW FHWDQH
QXPEHU *HQHUDOO\ WKH FHWDQH QXPEHU RI WKH PL[WXUH
ZLOO EH LQ GLUHFW UHODWLRQ WR WKH UDWLR RI WKH IXHOV WKDW
ZHUH PL[HG <RXU IXHO VXSSOLHU FDQ SURYLGH WKH
LQIRUPDWLRQ DERXW WKH FHWDQH QXPEHU RI D SDUWLFXODU
IXHO
$GGLWLYHV FDQ DOVR EH XVHG WR LPSURYH WKH FHWDQH
QXPEHU RI D IXHO $GGLWLYHV DUH HYDOXDWHG WKURXJK
WHVWLQJ LQ VSHFLDO WHVW HQJLQHV +RZHYHU WKH IXHO
FKDUDFWHULVWLFV RI DGGLWLYHV XVHG WR LPSURYHG IXHO
FHWDQH QXPEHU DUH GLIIHUHQW WKDQ WKH QDWXUDOO\
RFFXUULQJ SURSHU FHWDQH IXHO :KLOH ERWK IXHOV PD\ EH
UDWHG DV KDYLQJ WKH VDPH FHWDQH QXPEHU VWDUWLQJ
PD\ EH GLIIHUHQW
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
&ORXG 3RLQW
8QGHUVWDQG WKDW WKH FORXG SRLQW RI D IXHO LV GLIIHUHQW
IURP WKH SRXU SRLQW 7KHUH LV QR UHODWLRQVKLS EHWZHHQ
FORXG SRLQW DQG WKH SRXU SRLQW 7KH FORXG SRLQW LV WKH
WHPSHUDWXUH WKDW DOORZV VRPH RI WKH KHDYLHU
FRPSRQHQWV LQ WKH ZD[ WR VROLGLI\ LQ WKH IXHO 7KLV ZD[
LV QRW D FRQWDPLQDQW LQ WKH IXHO 7KH ZD[ LV DQ
LPSRUWDQW HOHPHQW RI 1R GLHVHO IXHO 7KH ZD[ KDV D
KLJK IXHO HQHUJ\ FRQWHQW DQG WKH ZD[ KDV D KLJK
FHWDQH YDOXH 5HPRYDO RI WKH KHDYLHU ZD[ ORZHUV WKH
FORXG SRLQW RI WKH IXHO 5HPRYDO RI WKH ZD[ DOVR
LQFUHDVHV WKH FRVW EHFDXVH OHVV IXHO FDQ EH PDGH
IURP WKH VDPH DPRXQW RI FUXGH RLO %DVLFDOO\ D 1R GLHVHO IXHO LV IRUPXODWHG E\ UHPRYLQJ WKH ZD[ IURP D
1R GLHVHO IXHO
7KH FORXG SRLQW RI WKH IXHO LV LPSRUWDQW EHFDXVH WKH
FORXG SRLQW FDQ OLPLW WKH SHUIRUPDQFH RI WKH IXHO ILOWHU
7KH ZD[ FDQ DOWHU WKH IXHO FKDUDFWHULVWLFV LQ FROG
ZHDWKHU 6ROLG ZD[ FDQ ILOO WKH IXHO ILOWHUV 7KH
VROLGLILHG ZD[ ZLOO VWRS WKH IORZ RI IXHO )XHO ILOWHUV DUH
QHFHVVDU\ LQ RUGHU WR UHPRYH GLUW IURP WKH IXHO 7KH
ILOWHUV EORFN IRUHLJQ PDWHULDO DQG WKH ILOWHUV SURWHFW WKH
SDUWV IRU WKH IXHO LQMHFWLRQ V\VWHP 6LQFH IXHO PXVW
IORZ WKURXJK WKH ILOWHUV LQVWDOOLQJ D IXHO KHDWHU LV WKH
PRVW SUDFWLFDO ZD\ WR SUHYHQW WKH SUREOHP $ IXHO
KHDWHU ZLOO NHHS WKH IXHO DERYH WKH FORXG SRLQW DV WKH
IXHO IORZV WKURXJK WKH IXHO V\VWHP 7KH IXHO KHDWHU ZLOO
SHUPLW WKH ZD[ WR IORZ WKURXJK WKH ILOWHUV ZLWK WKH IXHO
0RGLI\LQJ WKH &ORXG 3RLQW
<RX FDQ ORZHU WKH FORXG SRLQW RI D GLHVHO IXHO E\
PL[LQJ WKH GLHVHO IXHO ZLWK D GLIIHUHQW IXHO WKDW KDV D
ORZHU FORXG SRLQW 1R GLHVHO IXHO RU NHURVHQH PD\
EH XVHG WR ORZHU WKH FORXG SRLQW RI D GLHVHO IXHO 7KH
HIILFLHQF\ RI WKLV PHWKRG LV QRW JRRG 7KH UDWLR RI WKH
PL[WXUH GRHV QRW KDYH D GLUHFW UHODWLRQ WR WKH
LPSURYHPHQW LQ FORXG SRLQW 7KH DPRXQW RI IXHO ZLWK
ORZ FORXG SRLQW WKDW LV UHTXLUHG PDNHV WKH SURFHVV
OHVV SUHIHUDEOH WR XVH
7KH IROORZLQJ LOOXVWUDWLRQ FRQWDLQV D WDEOH WKDW FDQ EH
XVHG WR ILQG WKH QHFHVVDU\ PL[WXUH IRU WZR IXHOV ZLWK
GLIIHUHQW FORXG SRLQWV ,Q RUGHU WR XVH WKH WDEOH NQRZ
WKH H[DFW IXHO FORXG SRLQW RI HDFK IXHO 7KLV
VSHFLILFDWLRQ FDQ FKDQJH IURP RQH SXUFKDVH RI IXHO WR
WKH QH[W SXUFKDVH RI IXHO 7KLV VSHFLILFDWLRQ LV
QRUPDOO\ DYDLODEOH IURP SHUVRQQHO DW WKH VRXUFH RI WKH
IXHO VXSSO\ :KHQ IXHOV WKDW KDYH D ORZHU FORXG SRLQW
DUH QRW DYDLODEOH WKLV PHWKRG FDQQRW EH XVHG
7KH PDQXIDFWXUHU RI WKH IXHO FDQ DGG FROG IORZ
LPSURYHUV WR WKH IXHO &ROG IORZ LPSURYHUV PRGLI\ WKH
ZD[ FU\VWDOV LQ WKH IXHOV 7KH FROG IORZ LPSURYHUV GR
QRW FKDQJH WKH FORXG SRLQW +RZHYHU WKH FROG IORZ
LPSURYHUV NHHS WKH ZD[ FU\VWDOV VPDOO HQRXJK WR
SDVV WKURXJK VWDQGDUG IXHO ILOWHUV )RU PL[LQJ
SUHFDXWLRQV VHH WKH VHFWLRQ ³3RXU 3RLQW´
,OOXVWUDWLRQ J
&ORXG SRLQW RI IXHO PL[WXUHV
8VH D IXHO KHDWHU WR SUHYHQW SUREOHPV WKDW DUH
FDXVHG E\ IXHO FORXG SRLQW DW ORZ WHPSHUDWXUHV ,Q
PRVW DSSOLFDWLRQV IXHO KHDWHUV FDQ EH XVHG DW D ORZHU
FRVW WKDQ IXHO PL[WXUHV
3RXU 3RLQW
7KH IXHO SRXU SRLQW LV D WHPSHUDWXUH EHORZ WKH IXHO
FORXG SRLQW )XHO VWRSV IORZLQJ EHORZ WKH SRXU SRLQW
7KH SRXU SRLQW LV WKH WHPSHUDWXUH ZKLFK OLPLWV
PRYHPHQW RI WKH IXHO LQVLGH RI WKH SXPSV
7R PHDVXUH WKH SRXU SRLQW WKH IXHO WHPSHUDWXUH LV
ORZHUHG EHORZ WKH FORXG SRLQW LQ VWHSV RI & ) DW
D WLPH 7KH WHPSHUDWXUH LV ORZHUHG XQWLO WKH IXHO GRHV
QRW IORZ 7KH SRXU SRLQW LV WKH ODVW WHPSHUDWXUH WKDW LV
VKRZQ EHIRUH WKH IORZ VWRSV $W WKH SRXU SRLQW WKH
ZD[ KDV VROLGLILHG RXW RI WKH IXHO 7KH IXHO ZLOO EH PRUH
VROLG WKDQ OLTXLG 7KH SRXU SRLQW RI WKH IXHO FDQ EH
LPSURYHG ZLWKRXW WKH UHPRYDO RI LPSRUWDQW HOHPHQWV
7KLV SURFHVV LV WKH VDPH SURFHVV WKDW LV XVHG WR
LPSURYH WKH FORXG SRLQW RI D IXHO
$ IXHO V SRXU SRLQW VKRXOG EH DW OHDVW & )
EHORZ WKH ORZHVW DPELHQW WHPSHUDWXUH WKDW LV UHTXLUHG
IRU HQJLQH VWDUWXS DQG IRU HQJLQH RSHUDWLRQ 7R
RSHUDWH WKH HQJLQH LQ FROG ZHDWKHU 1R IXHO RU 1R
' IXHO PD\ EH QHFHVVDU\ EHFDXVH RI WKHVH IXHOV
ORZHU SRXU SRLQWV
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
0RGLI\LQJ WKH 3RXU 3RLQW
<RX FDQ ORZHU WKH IXHO V SRXU SRLQW E\ XVLQJ DGGLWLYHV
<RX FDQ DOVR ORZHU WKH SRXU SRLQW E\ PL[LQJ WKH GLHVHO
IXHO ZLWK D IXHO WKDW KDV D ORZHU SRXU SRLQW 1R GLHVHO IXHO RU NHURVHQH PD\ EH XVHG WR ORZHU WKH SRXU
SRLQW RI D GLHVHO IXHO 7KH DPRXQW RI IXHO ZLWK ORZ SRXU
SRLQW WKDW LV UHTXLUHG PDNHV WKH SURFHVV OHVV
SUHIHUDEOH WR XVH
7KH IROORZLQJ LOOXVWUDWLRQ FRQWDLQV D WDEOH WKDW FDQ EH
XVHG WR ILQG WKH QHFHVVDU\ PL[WXUH IRU WZR IXHOV ZLWK
GLIIHUHQW SRXU SRLQWV 7KH IXHOV GR QRW KDYH DGGLWLYHV
ZKLFK FKDQJH WKH SRXU SRLQW ,Q RUGHU WR XVH WKH WDEOH
NQRZ WKH H[DFW SRXU SRLQW RI HDFK IXHO 7KLV
VSHFLILFDWLRQ FDQ FKDQJH IURP RQH SXUFKDVH RI IXHO WR
WKH QH[W SXUFKDVH RI IXHO 7KLV VSHFLILFDWLRQ LV
QRUPDOO\ DYDLODEOH IURP SHUVRQQHO DW WKH VRXUFH RI WKH
IXHO VXSSO\ :KHQ IXHOV WKDW KDYH D ORZHU SRXU SRLQW
DUH QRW DYDLODEOH WKLV PHWKRG FDQQRW EH XVHG
/RFDWH WKH FORXG SRLQW RU WKH SRXU SRLQW RI WKH
OLJKWHU IXHO RQ WKH ULJKW VLGH RI WKH WDEOH 0DUN WKH
SRLQW RQ WKH WDEOH
'UDZ D OLQH EHWZHHQ WKH WZR SRLQWV WKDW ZHUH
HVWDEOLVKHG /DEHO WKLV OLQH ಮ$ಯ 'HWHUPLQH WKH ORZHVW RXWVLGH WHPSHUDWXUH IRU
PDFKLQH RSHUDWLRQ )LQG WKLV SRLQW RQ WKH OHIW VLGH
RI WKH WDEOH 0DUN WKLV SRLQW 'UDZ D KRUL]RQWDO OLQH
IURP WKLV SRLQW 6WRS WKH OLQH DW WKH LQWHUVHFWLRQ RI
OLQH ಮ$ಯ /DEHO WKLV QHZ OLQH ಮ&ಯ /LQH ಮ&ಯ DQG OLQH ಮ$ಯ LQWHUVHFW 0DUN WKLV SRLQW
'UDZ D YHUWLFDO OLQH IURP WKLV SRLQW 6WRS WKH OLQH DW
WKH ERWWRP RI WKH WDEOH /DEHO WKLV OLQH ಮ%ಯ 7KH
SRLQW DW WKH ERWWRP RI OLQH ಮ%ಯ UHYHDOV WKH
SHUFHQWDJH RI OLJKWHU IXHO UHTXLUHG WR PRGLI\ WKH
FORXG SRLQW RU WKH SRXU SRLQW
7KH DERYH H[DPSOH VKRZV WKDW WKH EOHQGLQJ ZLOO
UHTXLUH D SHUFHQW PL[WXUH RI OLJKWHU IXHO
$GGLWLYHV DUH D JRRG PHWKRG WR XVH LQ RUGHU WR ORZHU
WKH SRXU SRLQW RI D IXHO 7KHVH DGGLWLYHV DUH NQRZQ E\
WKH IROORZLQJ QDPHV SRXU SRLQW GHSUHVVDQWV FROG
IORZ LPSURYHUV DQG ZD[ PRGLILHUV :KHQ WKH
DGGLWLYHV DUH XVHG LQ WKH SURSHU FRQFHQWUDWLRQ WKH
IXHO ZLOO IORZ WKURXJK SXPSV OLQHV DQG KRVHV
1RWH 7KHVH DGGLWLYHV PXVW EH PL[HG WKRURXJKO\ LQWR
WKH IXHO DW WHPSHUDWXUHV WKDW DUH DERYH WKH FORXG
SRLQW 7KH IXHO VXSSOLHU VKRXOG EH FRQWDFWHG LQ RUGHU
WR EOHQG WKH IXHO ZLWK WKH DGGLWLYHV 7KH EOHQGHG IXHO
FDQ EH GHOLYHUHG WR \RXU IXHO WDQNV
/XEULFLW\ DQG /RZ 6XOIXU 'LHVHO
/6' DQG 8OWUD /RZ 6XOIXU 'LHVHO
8/6' )XHO
,OOXVWUDWLRQ J
3RXU SRLQW RI IXHO PL[WXUHV
,Q RUGHU WR FDOFXODWH WKH DPRXQW RI OLJKWHU IXHO WKDW LV
UHTXLUHG WR EH EOHQGHG ZLWK WKH KHDYLHU IXHO SHUIRUP
WKH IROORZLQJ VWHSV
2EWDLQ WKH VSHFLILFDWLRQ IRU WKH FORXG SRLQW RU WKH
SRXU SRLQW RI ERWK IXHOV IURP \RXU IXHO VXSSOLHU
/RFDWH WKH FORXG SRLQW RU WKH SRXU SRLQW RI WKH
KHDYLHU IXHO RQ WKH OHIW VLGH RI WKH WDEOH 0DUN WKH
SRLQW RQ WKH WDEOH
,Q WKH 8QLWHG 6WDWHV 86 /6' ZLOO KDYH SHUFHQW SSP PJNJ PD[LPXP VXOIXU 8/6' ZLOO
KDYH SHUFHQW SSP PJNJ PD[LPXP
VXOIXU 5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH
'LHVHO )XHO´ DUWLFOH IRU DGGLWLRQDO LQIRUPDWLRQ $OVR
UHIHU WR WKH PRVW FXUUHQW UHYLVLRQ OHYHO RI ³$670
' 6WDQGDUG 6SHFLILFDWLRQ IRU 'LHVHO )XHO 2LOV ´ IRU
DGGLWLRQDO LQIRUPDWLRQ
1RWH ³$670 '´ FXUUHQWO\ DOORZV XS WR SHUFHQW
ELRGLHVHO EOHQGV 5HIHU WR WKH ³)XHO 6SHFLILFDWLRQV´
VHFWLRQ DQG WKLV 6SHFLDO 3XEOLFDWLRQ ³%LRGLHVHO´ WRSLF
IRU JXLGDQFH ZKHQ ELRGLHVHO ZLOO EH XVHG
,Q (XURSH VXOIXU IUHH GLHVHO IXHO ZLOO KDYH SHUFHQW SSP PJNJ PD[LPXP VXOIXU 5HIHU WR
WKH PRVW FXUUHQW UHYLVLRQ OHYHO RI ³(XURSHDQ
6WDQGDUG (1 $XWRPRWLYH )XHOV 'LHVHO 5HTXLUHPHQWV DQG 7HVW 0HWKRGV ´ IRU DGGLWLRQDO
LQIRUPDWLRQ
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
1RWH ³(1 ´ FXUUHQWO\ DOORZV XS WR SHUFHQW
ELRGLHVHO EOHQGV 5HIHU WR WKH ³)XHO 6SHFLILFDWLRQV´
VHFWLRQ DQG WKLV 6SHFLDO 3XEOLFDWLRQ ³%LRGLHVHO´ WRSLF
IRU JXLGDQFH ZKHQ ELRGLHVHO ZLOO EH XVHG
1RWH 7KH IXHO OXEULFLW\ LV LPSRUWDQW &RQVLGHU WKH IXHO
OXEULFLW\ ZKHQHYHU \RX RSHUDWH WKH HTXLSPHQW LQ
WHPSHUDWXUH H[WUHPHV ZKHWKHU KRW RU FROG $OVR
FRQVLGHU WKH IXHO OXEULFLW\ ZKHQHYHU \RX XVH IXHOV WKDW
DUH ORZHU LQ YLVFRVLW\ RU WKDW KDYH EHHQ K\GURWUHDWHG
7KHUH DUH PDQ\ DIWHUPDUNHW DGGLWLYHV WKDW DUH
DYDLODEOH WR WUHDW IXHO ,I WKH IXHO OXEULFLW\ LV DQ LVVXH
FRQVXOW \RXU IXHO VXSSOLHU IRU SURSHU
UHFRPPHQGDWLRQV UHJDUGLQJ IXHO DGGLWLYHV $OVR UHIHU
WR WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO )XHO´
DUWLFOH ³$IWHUPDUNHW )XHO $GGLWLYHV´ DQG ³&DW 'LHVHO
)XHO &RQGLWLRQHU´ WRSLFV
7KH IOXLG OXEULFLW\ GHVFULEHV WKH DELOLW\ RI WKH IOXLG WR
UHGXFH WKH IULFWLRQ EHWZHHQ VXUIDFHV WKDW DUH XQGHU
ORDG 7KLV DELOLW\ UHGXFHV WKH GDPDJH WKDW LV FDXVHG
E\ IULFWLRQ )XHO LQMHFWLRQ V\VWHPV UHO\ RQ WKH
OXEULFDWLQJ SURSHUWLHV RI WKH IXHO 8QWLO IXHO VXOIXU OLPLWV
ZHUH PDQGDWHG WKH IXHO OXEULFLW\ ZDV EHOLHYHG WR EH D
IXQFWLRQ RI IXHO YLVFRVLW\
,Q RUGHU WR GHWHUPLQH WKH OXEULFLW\ RI WKH IXHO XVH WKH
³$670 ' +LJK )UHTXHQF\ 5HFLSURFDWLQJ 5LJ
+)55 ´ WHVW 7KH PD[LPXP DOORZDEOH ZHDU VFDU LV
PP LQFK DW & ) ,I WKH
OXEULFLW\ RI D IXHO GRHV QRW PHHW WKH PLQLPXP
UHTXLUHPHQWV FRQVXOW \RXU IXHO VXSSOLHU 'R QRW WUHDW
WKH IXHO ZLWKRXW FRQVXOWLQJ WKH IXHO VXSSOLHU 6RPH
DGGLWLYHV DUH QRW FRPSDWLEOH 7KHVH DGGLWLYHV FDQ
FDXVH SUREOHPV LQ WKH IXHO V\VWHP
7KH SURFHVV WKDW LV PRVW FRPPRQO\ XVHG WR UHPRYH
VXOIXU IURP IXHO LV FDOOHG K\GURWUHDWPHQW 7KLV
SURFHVV LV DOVR WKH PRVW HFRQRPLFDO SURFHVV (DFK
VRXUFH RI FUXGH RLO FRQWDLQV GLIIHUHQW DPRXQWV RI
VXOIXU &UXGH RLOV W\SLFDOO\ UHTXLUH K\GURWUHDWPHQW WR
REWDLQ WKH SHUFHQW PD[LPXP VXOIXU OLPLW
&UXGH RLOV ZLWK KLJK VXOIXU UHTXLUH D PRUH VHYHUH
WUHDWPHQW
7KH K\GURWUHDWPHQW UHPRYHV WKH IXHO VXOIXU DV ZHOO
DV RWKHU FRPSRQHQWV 7KH WUHDWPHQW UHPRYHV
QLWURJHQ FRPSRXQGV SRODU PDWHULDOV ELF\FOLF
DURPDWLFV SRO\F\FOLF DURPDWLFV DQG R[\JHQ
FRPSRXQGV :KLOH WKH UHPRYDO RI VXOIXU KDV VKRZQ
QR GHWULPHQWDO HIIHFWV WR WKH HQJLQH WKH UHPRYDO RI
RWKHU FRPSRXQGV KDYH ORZHUHG WKH OXEULFLW\ RI WKH
IXHO $V D UHVXOW RI WKH ORZHUHG OXEULFLW\ WKH IXHO LV OHVV
WROHUDQW RI FRQWDPLQDWLRQ E\ ZDWHU DQG GLUW 7KH ORZHU
IXHO OXEULFLW\ FDQ EH VHHQ DV DEUDVLYH ZHDU RI IXHO
V\VWHP FRPSRQHQWV )XHOV WKDW KDYH D ORZ OXEULFLW\
PD\ QRW SURYLGH DGHTXDWH OXEULFDWLRQ WR SOXQJHUV WR
EDUUHOV DQG WR LQMHFWRUV 7KLV SUREOHP PD\ EH
FRPSRXQGHG LQ DUHDV WKDW UHTXLUH ZLQWHU EOHQGV RI
IXHO 7KH OLJKWHU ZLQWHU IXHO EOHQG KDV WKH IROORZLQJ
FKDUDFWHULVWLFV ORZHU YLVFRVLW\ ORZHU FORXG SRLQW DQG
ORZHU SRXU SRLQW
:KHQ UHTXLUHG WKH IXHO OXEULFLW\ PD\ EH HQKDQFHG
ZLWK DGGLWLYHV 0DQ\ IXHO VXSSOLHUV WUHDW WKH IXHO ZLWK
WKHVH DGGLWLYHV 'R QRW XVH D IXHO OXEULFLW\ DGGLWLYH
EHIRUH \RX FRQVXOW WKH IXHO VXSSOLHU 6RPH
DIWHUPDUNHW DGGLWLYHV PD\ QRW EH FRPSDWLEOH ZLWK WKH
DGGLWLYHV WKDW DUH DOUHDG\ LQ WKH IXHO DQG VRPH PD\
GDPDJH HPLVVLRQ FRQWURO V\VWHPV 6RPH DGGLWLYH
SDFNDJHV PD\ QRW EH FRPSDWLEOH ZLWK WKH VHDOV WKDW
DUH XVHG LQ IXHO V\VWHPV RI VRPH GLHVHO HQJLQHV
2WKHU DGGLWLYH SDFNDJHV WKDW DUH VXSSOLHG E\
DIWHUPDUNHW PDQXIDFWXUHUV FDQQRW SURYLGH SURSHU
SHUIRUPDQFH LQ KLJK WHPSHUDWXUH FRQGLWLRQV 7KHVH
DGGLWLYHV PD\ OHDYH GHSRVLWV EHFDXVH RI WKH KLJK
WHPSHUDWXUHV WKDW H[LVW LQ WKH IXHO V\VWHPV RI GLHVHO
HQJLQHV
0D[LPXP OLIH RI WKH IXHO V\VWHP FDQ EH DFKLHYHG E\
SHUIRUPLQJ WKH IROORZLQJ WDVNV XVLQJ D SUHIHUUHG
GLVWLOODWH GLHVHO IXHO UHIHU WR WKH ³)XHO
5HFRPPHQGDWLRQV´ DUWLFOH LQ WKLV 6SHFLDO
3XEOLFDWLRQ XVLQJ D UHOLDEOH IXHO VXSSOLHU DQG
SHUIRUPLQJ SURSHU PDLQWHQDQFH RI WKH IXHO V\VWHP
&DW $GYDQFHG (IILFLHQF\ IXHO ILOWHUV DUH UHTXLUHG IRU
GLHVHO HQJLQHV WKDW UXQ RQ GLHVHO IXHO LQ RUGHU WR
SURYLGH PD[LPXP OLIH WR WKH IXHO V\VWHP
1RWH /LJKWHU IXHOV DUH IUHTXHQWO\ XVHG LQ DUFWLF
WHPSHUDWXUHV /LJKWHU IXHOV PD\ LQFOXGH WKH IROORZLQJ
IXHOV -HW $ -HW $ -3 -3 DQG NHURVHQH 7KH
VSHFLILFDWLRQV WKDW DSSO\ WR WKHVH IXHOV GR QRW LQFOXGH
D PLQLPXP OXEULFLW\ UHTXLUHPHQW 'R QRW DVVXPH WKDW
D IXHO PHHWV WKH PLQLPXP &DW VSHFLILFDWLRQ &RQWDFW
WKH IXHO VXSSOLHU IRU SURSHU UHFRPPHQGDWLRQV RQ IXHO
OXEULFLW\ DGGLWLYHV
1RWH 7KH VXOIXU OHYHOV IRU -HW $ -HW $ -3 -3
DQG NHURVHQH IXHOV W\SLFDOO\ IDU H[FHHG SSP WKH
86 8/6' IXHO DQG IDU H[FHHG WKH (8 VXOIXU IUHH IXHO
1RWH )RU EHVW UHVXOWV \RXU IXHO VXSSOLHU VKRXOG WUHDW
WKH IXHO ZKHQ DGGLWLYHV DUH UHTXLUHG
5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO
)XHO´ DUWLFOH ³$IWHUPDUNHW )XHO $GGLWLYHV´ ³&DW
'LHVHO )XHO &RQGLWLRQHU´ DQG ³$OWHUQDWLYH )XHOV $UFWLF $SSOLFDWLRQV´ WRSLFV IRU JXLGDQFH
'LHVHO )XHO 6XOIXU
6XOIXU LV D QDWXUDO FRPSRQHQW RI GLHVHO IXHOV +LJK
VXOIXU LQ WKH IXHO FDQ EH UHGXFHG WKURXJK UHILQLQJ
WHFKQRORJLHV
6XOIXU OHYHOV LQ WKH IXHO DIIHFW WKH GXUDELOLW\ RI HQJLQH
FRPSRQHQWV DQG DOVR DIIHFW HQJLQH H[KDXVW
HPLVVLRQV 0RGHUQ &DW GLHVHO HQJLQHV DUH GHVLJQHG
WR PHHW PDQGDWHG JDVHRXV HPLVVLRQV UHTXLUHPHQWV
7R PHHW WKHVH HPLVVLRQV UHTXLUHPHQWV WKH HQJLQHV
DUH WHVWHG DQG GHYHORSHG ZLWK VSHFLILF VXOIXU OHYHOV LQ
WKH GLHVHO IXHO
7KH PD[LPXP DOORZDEOH IXHO VXOIXU OHYHO LV FRQWUROOHG
E\ YDULRXV HPLVVLRQV ODZV UHJXODWLRQV DQG
PDQGDWHV &RQVXOW IHGHUDO VWDWH DQG ORFDO
DXWKRULWLHV IRU JXLGDQFH RQ IXHO UHTXLUHPHQWV IRU \RXU
DUHD
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
7KH OLVW EHORZ SURYLGHV D TXLFN UHIHUHQFH IRU
DFFHSWDEOH VXOIXU OHYHOV IRU GLHVHO IXHO WKDW ZLOO EH
XVHG LQ &DW PDFKLQH GLHVHO HQJLQHV EXW WKH
FRQWUROOLQJ GRFXPHQWV DUH WKH HQJLQH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDOV WKH VSHFLILF DIWHUWUHDWPHQW
GHYLFH GRFXPHQWDWLRQ DQG WKH DSSOLFDEOH HPLVVLRQV
ODZV UHJXODWLRQV DQG PDQGDWHV
86 (3$ UHJXODWLRQV UHTXLUH WKH XVH RI 8OWUD /RZ
6XOIXU 'LHVHO IXHO 8/6' SHUFHQW SSP PJNJ VXOIXU IRU QRQURDG DQG VWDWLRQDU\
7LHU (3$ FHUWLILHG HQJLQHV XVLQJ IXHO VHQVLWLYH
WHFKQRORJLHV VXFK DV 6&5 V\VWHPV DQG
SDUWLFXODWH ILOWHUV )XHOV RWKHU WKDQ 8/6' FDQ
FDXVH GDPDJH LQ WKRVH HQJLQHV DQG VKRXOG QRW EH
XVHG &RQVXOW WKH 86 (3$ IRU IXHO VXOIXU
UHJXODWLRQV DQG IRU WKH 8/6' SRLQW RI VDOHV
UHTXLUHG GDWHV IRU YDULRXV QRQURDG DSSOLFDWLRQV
(XURSHDQ VXOIXU IUHH IXHO SHUFHQW PJNJ VXOIXU IXHO LV UHTXLUHG E\ UHJXODWLRQ IRU XVH
LQ HQJLQHV FHUWLILHG WR (8 QRQURDG 6WDJH ,,,% DQG
QHZHU VWDQGDUGV DQG WKDW DUH HTXLSSHG ZLWK
H[KDXVW DIWHUWUHDWPHQW V\VWHPV
&HUWDLQ JRYHUQPHQWVORFDOLWLHV DQGRU DSSOLFDWLRQV
0$< UHTXLUH WKH XVH RI 8/6' IXHO &RQVXOW IHGHUDO
VWDWH DQG ORFDO DXWKRULWLHV IRU JXLGDQFH RQ IXHO
UHTXLUHPHQWV IRU \RXU DUHD
7KH PD[LPXP DOORZDEOH IXHO VXOIXU OHYHO IRU PRVW
SUH7LHU HQJLQHV WKDW DUH HTXLSSHG ZLWK '2&
'LHVHO 2[LGDWLRQ &DWDO\VW LV SHUFHQW SSP PJNJ 6RPH '2& HTXLSSHG HQJLQHV
UHTXLUH WKH XVH RI IXHO ZLWK D PD[LPXP RI SSP PJNJ IXHO VXOIXU 5HIHU WR WKH HQJLQH
PDFKLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO DQG
UHIHU WR WKH DIWHUWUHDWPHQW GHYLFH VSHFLILF
GRFXPHQWDWLRQ IRU JXLGDQFH
)RU PDFKLQH GLHVHO HQJLQHV WKDW DUH UHWURILWWHG ZLWK
DQ DIWHUWUHDWPHQW GHYLFH UHIHU WR WKH
DIWHUWUHDWPHQW GHYLFH VSHFLILF GRFXPHQWDWLRQ
7\SLFDO DIWHUWUHDWPHQW V\VWHPV LQFOXGH 'LHVHO
3DUWLFXODWH )LOWHUV '3) 'LHVHO 2[LGDWLRQ &DWDO\VWV
'2& 6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 DQGRU
/HDQ 12[ 7UDSV /17 2WKHU V\VWHPV PD\ DSSO\
,Q DGGLWLRQ WR WKH HPLVVLRQ UHJXODWLRQV IDFWRUV WKDW
DIIHFW PD[LPXP DOORZHG DQGRU DFFHSWDEOH IXHO VXOIXU
OHYHO LQFOXGH
(QJLQH PRGHOGHVLJQ
(QJLQH DSSOLFDWLRQ
2YHUDOO IXHO TXDOLW\
8VLQJ UHFRPPHQGHG IOXLGV LQFOXGLQJ EXW QRW
OLPLWHG WR HQJLQH RLO TXDOLW\
([KDXVW DIWHUWUHDWPHQW GHYLFH W\SH
(QYLURQPHQWDO IDFWRUV DQG RWKHU VLWH VSHFLILF
RSHUDWLQJ FRQGLWLRQV
)XHO FRVWV YHUVXV ULVN RI VKRUWHQHG HQJLQHHQJLQH
FRPSRQHQW OLIH
)XHO FRVWV YHUVXV VKRUWHQHG RLO GUDLQ LQWHUYDOV
0DLQWHQDQFH LQWHUYDOV DQG RWKHU PDLQWHQDQFH
SUDFWLFHV
8OWUD/RZ 6XOIXU 'LHVHO 8/6'
7KH 8QLWHG 6WDWHV 86 (QYLURQPHQWDO 3URWHFWLRQ
$JHQF\ (3$ GHILQHV 8OWUD/RZ 6XOIXU 'LHVHO 8/6'
6 DV D 86 GLHVHO IXHO ZLWK D VXOIXU FRQWHQW QRW WR
H[FHHG SDUWV SHU PLOOLRQ SSP PJNJ RU SHUFHQW E\ ZHLJKW
8/6' ZDV LQWURGXFHG IRU WKH 86 RQKLJKZD\ GLHVHO
HQJLQH PDUNHW LQ 2FWREHU 8/6' LV DYDLODEOH
VLQFH'HFHPEHU IRU QRQURDG GLHVHO HQJLQHV DQG
PDFKLQHV 5HIHU WR WKH 86 (3$ IRU WKH UHTXLUHG
8/6' SRLQW RI VDOHV GDWHV IRU YDULRXV QRQURDG
DSSOLFDWLRQV
(QJLQHV FHUWLILHG WR QRQURDG 7LHU VWDQGDUGV 6WDJH
,9 LQ (XURSH DQG DUH HTXLSSHG ZLWK IXHO VXOIXU
VHQVLWLYH H[KDXVW DIWHUWUHDWPHQW V\VWHPV DUH
GHVLJQHG WR UXQ RQ 8/6' RQO\ 8VH RI /6' RU IXHOV
KLJKHU WKDQ SSP PJNJ VXOIXU LQ WKHVH HQJLQHV
ZLOO UHGXFH HQJLQH HIILFLHQF\ DQG HQJLQH GXUDELOLW\
DQG ZLOO GDPDJH HPLVVLRQV FRQWURO V\VWHPV DQGRU
VKRUWHQ WKHLU VHUYLFH LQWHUYDO )DLOXUHV WKDW UHVXOW IRUP
WKH XVH RI IXHOV DUH QRW &DW IDFWRU\ GHIHFWV 7KHUHIRUH
WKH FRVW RI UHSDLUV ZRXOG QRW EH RYHUHG E\ D &DW
ZDUUDQW\
8/6' IXHO FDQ EH XVHG LQ DQ\ HQJLQH GHVLJQHG WR UXQ
RQ GLHVHO IXHO &DW GRHV QRW UHTXLUH WKH XVH RI 8/6'
LQ QRQURDG DQG PDFKLQH DSSOLFDWLRQV WKDW DUH QRW 7LHU
6WDJH ,,,%6WDJH ,9 FHUWLILHG HQJLQHV DQG DUH QRW
HTXLSSHG ZLWK DIWHUWUHDWPHQW GHYLFHV )RU 7LHU 6WDJH ,,,%6WDJH ,9 FHUWLILHG HQJLQHV DOZD\V IROORZ
RSHUDWLQJ LQVWUXFWLRQV DQG IXHO WDQN LQOHW ODEHOV LI
DYDLODEOH WR LQVXUH WKH FRUUHFW IXHOV DUH XVHG
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
1RWH 7KH UHPRYDO RI VXOIXU DQG RWKHU FRPSRXQGV LQ
8OWUD /RZ 6XOIXU 'LHVHO 8/6' IXHO GHFUHDVHV WKH
FRQGXFWLYLW\ RI 8/6' DQG LQFUHDVHV LWV DELOLW\ WR VWRUH
VWDWLF FKDUJH 5HILQHULHV PD\ KDYH WUHDWHG WKH IXHO
ZLWK D VWDWLF GLVVLSDWLQJ DGGLWLYH +RZHYHU WKHUH DUH
PDQ\ IDFWRUV WKDW FDQ UHGXFH WKH HIIHFWLYHQHVV RI WKH
DGGLWLYH RYHU WLPH 6WDWLF FKDUJHV FDQ EXLOG XS LQ
8/6' IXHO ZKLOH LW LV IORZLQJ WKURXJK IXHO GHOLYHU\
V\VWHPV 6WDWLF HOHFWULFLW\ GLVFKDUJH ZKHQ
FRPEXVWLEOH YDSRUV DUH SUHVHQW FRXOG UHVXOW LQ D ILUH
RU H[SORVLRQ 7KHUHIRUH LW LV LPSRUWDQW WR HQVXUH WKDW
WKH HQWLUH V\VWHP XVHG WR UHIXHO \RXU PDFKLQH IXHO
VXSSO\ WDQN WUDQVIHU SXPS WUDQVIHU KRVH QR]]OH DQG
RWKHUV LV SURSHUO\ JURXQGHG DQG ERQGHG &RQVXOW
ZLWK \RXU IXHO RU IXHO V\VWHP VXSSOLHU WR HQVXUH WKH
GHOLYHU\ V\VWHP LV LQ FRPSOLDQFH ZLWK IXHOLQJ
VWDQGDUGV IRU SURSHU JURXQGLQJ DQG ERQGLQJ
SUDFWLFHV
7\SLFDO DIWHUWUHDWPHQW V\VWHPV LQFOXGH 'LHVHO
UWLFXODWH )LOWHUV '3) 'LHVHO 2[LGDWLRQ &DWDO\VWV
'2& 6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 DQGRU
/HDQ 12[ 7UDSV /17 2WKHU V\VWHPV PD\ DSSO\
8VH RI IXHOV ZLWK KLJKHU WKDQ UHFRPPHQGHG DQGRU
PD[LPXP DOORZHG IXHO VXOIXU OHYHOV FDQ DQGRU ZLOO
,QFUHDVH ZHDU RI HQJLQH FRPSRQHQWV
,QFUHDVH FRUURVLRQ RI HQJLQH FRPSRQHQWV
,QFUHDVH GHSRVLWV
,QFUHDVH VRRW IRUPDWLRQ
6KRUWHQ WKH WLPH SHULRG EHWZHHQ RLO GUDLQ LQWHUYDOV
FDXVH WKH QHHG IRU PRUH IUHTXHQW RLO GUDLQ
LQWHUYDOV
6KRUWHQ WKH WLPH LQWHUYDO EHWZHHQ DIWHUWUHDWPHQW
GHYLFH VHUYLFH LQWHUYDOV FDXVH WKH QHHG IRU PRUH
IUHTXHQW VHUYLFH LQWHUYDOV
8OWUD /RZ 6XOIXU 'LHVHO 8/6' SRVHV D JUHDWHU
VWDWLF LJQLWLRQ KD]DUG WKDQ HDUOLHU GLHVHO IRUPXOD
WLRQV ZLWK D KLJKHU VXOIXU FRQWHQW ZKLFK PD\ UH
VXOW LQ D ILUH RU H[SORVLRQ &RQVXOW ZLWK \RXU IXHO
RU IXHO V\VWHP VXSSOLHU IRU GHWDLOV RQ SURSHU
JURXQGLQJ DQG ERQGLQJ SUDFWLFHV
6XOIXUIUHH 'LHVHO )XHO
,Q (XURSH XOWUD ORZ VXOIXU GLHVHO IXHO ZLOO KDYH D
PD[LPXP RI SHUFHQW SSP PJNJ VXOIXU
DQG LV W\SLFDOO\ UHIHUUHG WR DV ³VXOIXUIUHH´ 7KLV VXOIXU
OHYHO LV GHILQHG LQ ³(XURSHDQ 6WDQGDUG (1
´
/RZ 6XOIXU 'LHVHO /6'
/RZ 6XOIXU 'LHVHO /6' 6 LV GHILQHG E\ WKH 86
(3$ DV D 86 GLHVHO IXHO ZLWK VXOIXU FRQWHQW QRW WR
H[FHHG SSP RU SHUFHQW E\ ZHLJKW
1RWH %RWK 8/6' DQG /6' PXVW PHHW WKH IXHO
UHTXLUHPHQWV RXWOLQHG LQ WKH PRVW FXUUHQW UHYLVLRQ
OHYHO RI ³$670 '´
'LHVHO )XHO 6XOIXU ,PSDFWV
6XOIXU LQ WKH IXHO UHVXOWV LQ WKH IRUPDWLRQ RI VXOIXU
GLR[LGH 62 DQG VXOIXU WULR[LGH 62 JDVHV GXULQJ
WKH FRPEXVWLRQ SURFHVV :KHQ FRPELQHG ZLWK ZDWHU
LQ WKH H[KDXVW JDV 62 DQG 62 FDQ IRUP DFLGV 7KH
DFLGV FDQ LPSDFW HQJLQH FRPSRQHQWV DQG HQJLQH
OXEULFDQWV
6XOIXU LQ WKH H[KDXVW JDV FDQ LQWHUIHUH ZLWK WKH
RSHUDWLRQ RI DIWHUWUHDWPHQW GHYLFHV FDXVLQJ ORVV RI
SDVVLYH UHJHQHUDWLRQ SHUIRUPDQFH UHGXFHG JDVHRXV
HPLVVLRQ FRQYHUVLRQ HIILFLHQF\ DQG LQFUHDVHG
SDUWLFXODWH PDWWHU HPLVVLRQV
1HJDWLYHO\ LPSDFW WKH SHUIRUPDQFH DQG OLIH RI
DIWHUWUHDWPHQW GHYLFHV FDXVH ORVV RI
SHUIRUPDQFH
5HGXFH UHJHQHUDWLRQ LQWHUYDOV RI DIWHUWUHDWPHQW
GHYLFHV
/RZHU IXHO HFRQRP\
,QFUHDVH RYHUDOO RSHUDWLQJ FRVWV
'HSHQGLQJ RQ RSHUDWLQJ FRQGLWLRQV DQG GHSHQGLQJ
RQ PDLQWHQDQFH SUDFWLFHV WKH SRWHQWLDO LVVXHV VWDWHG
DERYH PD\ DQGRU ZLOO WDNH SODFH ZLWK IXHO VXOIXU
OHYHOV WKDW DUH DW RU EHORZ WKH UHFRPPHQGHG IXHO
VXOIXU OHYHOV DQGRU WKDW DUH DW RU EHORZ WKH PD[LPXP
DOORZDEOH IXHO VXOIXU OHYHOV
)XHO VXOIXU OHYHOV DERYH SSP PJNJ
PD\ VLJQLILFDQWO\ VKRUWHQ WKH RLO FKDQJH LQWHUYDO
:KHQ RWKHU IDFWRUV GR QR SUHFOXGH DQG
XQGHUVWDQGLQJ WKDW WKHUH PD\ EH WUDGHRIIV VXFK DV
VKRUWHQHG RLO GUDLQ LQWHUYDOV FHUWDLQ FRPPHUFLDO DQG
PDFKLQH GLHVHO HQJLQHV WKDW DUH FRYHUHG E\ WKLV
6SHFLDO 3XEOLFDWLRQ 0$< EH DEOH WR RSHUDWH
VDWLVIDFWRULO\ RQ IXHOV ZLWK XS WR SHUFHQW SSP PJNJ VXOIXU LI WKH IROORZLQJ FRQGLWLRQV DUH PHW
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
$OO HPLVVLRQV ODZV UHJXODWLRQV DQG PDQGDWHV DUH
IROORZHG
7KH HQJLQHHQJLQHV DUH QRW HTXLSSHG ZLWK
DIWHUWUHDWPHQW GHYLFHGHYLFHV
$OO DSSURSULDWH JXLGHOLQHV DQG PDLQWHQDQFH
SUDFWLFHV DV VWDWHG LQ WKH HQJLQH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO DUH IROORZHG
$OO DSSURSULDWH JXLGHOLQHV DQG PDLQWHQDQFH
SUDFWLFHV DV VWDWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ DUH
IROORZHG
2SHUDWLQJ LQ RWKHUZLVH ORZ WR PRGHUDWH VHYHULW\
DSSOLFDWLRQV
<RXU &DW GHDOHU LV FRQVXOWHG DQG DSSURYHV
<RX UHIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ DQG \RX UHIHU
WR \RXU VSHFLILF &DW FRPPHUFLDO HQJLQH DQGRU
UHIHU WR \RXU VSHFLILF &DW PDFKLQH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO IRU DGGLWLRQDO JXLGDQFH DQG
H[FHSWLRQV
2LO 'UDLQ ,QWHUYDOV
1RWH '2 127 86( 21/< 7+,6 63(&,$/
38%/,&$7,21 $6 $ %$6,6 )25 '(7(50,1,1*
2,/ '5$,1 ,17(59$/6
)XHO VXOIXU OHYHO LPSDFWV WKH RLO GUDLQ LQWHUYDO )RU
GHWDLOHG LQIRUPDWLRQ UHIHU WR WKH ³6ā2ā6 6HUYLFHV 2LO
$QDO\VLV´ VHFWLRQ LQ WKH ³/XEULFDQWV 6SHFLILFDWLRQ´
DUWLFOH LQ WKLV 6SHFLDO 3XEOLFDWLRQ
0RVW GLHVHO IXHOV KDYH VRPH GLVVROYHG PRLVWXUH -XVW
DV WKH PRLVWXUH LQ DLU WKH IXHO FDQ RQO\ FRQWDLQ D
VSHFLILF PD[LPXP DPRXQW RI PRLVWXUH DW DQ\ RQH
WHPSHUDWXUH 7KH DPRXQW RI PRLVWXUH GHFUHDVHV DV
WKH WHPSHUDWXUH LV ORZHUHG )RU H[DPSOH D IXHO FRXOG
FRQWDLQ SSP PJNJ RU SHUFHQW RI
ZDWHU LQ VROXWLRQ DW & ) 7KLV VDPH IXHO FDQ
SRVVLEO\ KROG RQO\ SSP SSP RU SHUFHQW
DW & ) $IWHU WKH IXHO KDV DEVRUEHG WKH PD[LPXP DPRXQW RI
ZDWHU WKH DGGLWLRQDO ZDWHU ZLOO EH IUHH DQG GLVSHUVHG
)UHH DQG GLVSHUVHG PRLVWXUH LV ILQH GURSOHWV RI ZDWHU
WKDW LV VXVSHQGHG LQ WKH IXHO 6LQFH WKH ZDWHU LV
KHDYLHU WKDQ WKH IXHO WKH ZDWHU ZLOO VORZO\ EHFRPH
IUHH DQG VHWWOHG DW WKH ERWWRP RI WKH WDQN ,Q WKH
DERYH H[DPSOH ZKHQ WKH IXHO WHPSHUDWXUH ZDV
ORZHUHG IURP & ) WR & ) SSP PJ
NJ RI ZDWHU EHFDPH IUHH DQG GLVSHUVHG LQ WKH IXHO
7KH VPDOO GURSV RI ZDWHU FDXVH D FORXG\ DSSHDUDQFH
LQ WKH IXHO ,I WKH FKDQJH LQ WHPSHUDWXUH LV VORZ WKH
VPDOO GURSV RI ZDWHU FDQ VHWWOH WR WKH ERWWRP RI WKH
WDQN :KHQ WKH IXHO WHPSHUDWXUH LV ORZHUHG UDSLGO\ WR
IUHH]LQJ WHPSHUDWXUH WKH PRLVWXUH WKDW FRPHV RXWRI
VROXWLRQ FKDQJHV WR ILQH SDUWLFOHV RI LFH LQVWHDG RI
VPDOO GURSV RI ZDWHU
7KH SDUWLFOHV RI LFH DUH OLJKWHU WKDQ WKH IXHO DQG WKH
SDUWLFOHV RI LFH ZLOO QRW VHWWOH WR WKH ERWWRP RI WKH WDQN
:KHQ WKLV W\SH RI PRLVWXUH LV PL[HG LQ WKH IXHO WKLV
PRLVWXUH ZLOO ILOO WKH IXHO ILOWHUV 7KH LFH FU\VWDOV ZLOO
SOXJ WKH IXHO ILOWHUV LQ WKH VDPH ZD\ DV ZD[ SOXJV WKH
IXHO ILOWHUV
,I D ILOWHU LV SOXJJHG DQG IXHO IORZ LV VWRSSHG SHUIRUP
WKH IROORZLQJ SURFHGXUH WR GHWHUPLQH WKH FDXVH
&DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV UHFRPPHQGHG
5HPRYH WKH IXHO ILOWHUV
&DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV YHU\ VWURQJO\
UHFRPPHQGHG WR GHWHUPLQH RLO GUDLQ LQWHUYDOV
ZKHQ XVLQJ IXHO ZLWK VXOIXU OHYHOV EHWZHHQ SSP DQG SSP &XW WKH IXHO ILOWHUV RSHQ
&DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV UHTXLUHG WR
GHWHUPLQH RLO GUDLQ LQWHUYDOV ZKHQ XVLQJ IXHO ZLWK
VXOIXU OHYHOV DERYH SSP &RQVXOW \RXU &DW GHDOHU IRU JXLGDQFH ZKHQ IXHO
VXOIXU OHYHOV DUH DERYH SSP 0RLVWXUH &RQWHQW
3UREOHPV ZLWK IXHO ILOWHUV FDQ RFFXU DW DQ\ WLPH 7KH
FDXVH RI WKH SUREOHP FDQ EH ZDWHU LQ WKH IXHO RU
PRLVWXUH LQ WKH IXHO $W ORZ WHPSHUDWXUHV PRLVWXUH
FDXVHV VSHFLDO SUREOHPV 7KHUH DUH WKUHH W\SHV RI
PRLVWXUH LQ IXHO GLVVROYHG PRLVWXUH PRLVWXUH LQ
VROXWLRQ IUHH DQG GLVSHUVHG PRLVWXUH LQ WKH IXHO DQG
IUHH DQG VHWWOHG DW WKH ERWWRP RI WKH WDQN
,QVSHFW WKH IXHO ILOWHU EHIRUH WKH ILOWHU ZDUPV 7KLV
LQVSHFWLRQ ZLOO VKRZ WKDW WKH ILOWHU LV ILOOHG ZLWK
SDUWLFOHV RI HLWKHU LFH RU ZD[
7KH PRLVWXUH ZKLFK LV IUHH DQG VHWWOHG DW WKH ERWWRP
RI WKH WDQN FDQ EHFRPH PL[HG ZLWK WKH IXHO 7KH IRUFH
RI DQ\ SXPSLQJ DFWLRQ ZLOO PL[ WKH PRLVWXUH ZLWK WKH
IXHO ZKHQHYHU IXHO LV WUDQVIHUUHG 7KLV PRLVWXUH WKHQ
EHFRPHV IUHH DQG GLVSHUVHG ZDWHU 7KLV PRLVWXUH FDQ
FDXVH LFH LQ WKH ILOWHUV 7KLV PRLVWXUH FDQ FDXVH RWKHU
SUREOHPV ZLWK ILOWHUV DW DQ\ WHPSHUDWXUH *HQHUDOO\
WKH VDPH IRUFH WKDW PL[HV WKH ZDWHU LQWR WKH IXHO ZLOO
DOVR PL[ GLUW DQG UXVW IURP WKH ERWWRP RI WKH WDQN 7KH
UHVXOW LV D GLUW\ PL[WXUH RI IXHO DQG ZDWHU ZKLFK FDQ
DOVR ILOO WKH ILOWHUV DQG VWRS IXHO IORZ
6SHFLILF *UDYLW\ $3, *UDYLW\
7KH VSHFLILF JUDYLW\ RI GLHVHO IXHO LV WKH ZHLJKW RI D
IL[HG YROXPH RI IXHO LQ FRPSDULVRQ WR WKH ZHLJKW RI WKH
VDPH YROXPH RI ZDWHU DW WKH VDPH WHPSHUDWXUH $
KLJKHU VSHFLILF JUDYLW\ FRUUHODWHV LQWR D KHDYLHU IXHO
+HDYLHU IXHOV KDYH PRUH HQHUJ\ RU SRZHU SHU YROXPH
IRU WKH HQJLQH WR XVH
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
1RWH 7KH VHWWLQJV IRU WKH IXHO PL[WXUH VKRXOG QRW EH
DGMXVWHG LQ RUGHU WR FRPSHQVDWH IRU D ORVV RI SRZHU
ZLWK IXHOV WKDW DUH OLJKWHU 7KH OLIH RI IXHO V\VWHP
FRPSRQHQWV FDQ EH GHFUHDVHG ZLWK OLJKW IXHOV
EHFDXVH OXEULFDWLRQ ZLOO EH OHVV HIIHFWLYH DV D UHVXOW RI
WKH ORZHU YLVFRVLW\ 6XIILFLHQW OXEULFLW\ LV D SUREOHP
5HIHU WR WKH ³/XEULFLW\ DQG /RZ 6XOIXU )XHO 'LHVHO
/6' DQG 8OWUD /RZ 6XOIXU 'LHVHO 8/6' )XHO´ WRSLF
LQ WKLV 6SHFLDO 3XEOLFDWLRQ ³&KDUDFWHULVWLFV RI 'LHVHO
)XHO´ DUWLFOH
7KH $3, JUDYLW\ RI D IXHO LV DOVR D PHDVXUH RI WKH
GHQVLW\ RI WKH IXHO RU WKH UHODWLRQVKLS RI WKH ZHLJKW WR
WKH YROXPH 7KH VFDOH IRU $3, JUDYLW\ LV LQYHUVH WR WKH
VFDOH IRU VSHFLILF JUDYLW\ 7KH $3, JUDYLW\ ZLOO EHFRPH
KLJKHU DV WKH IXHO EHFRPHV OLJKWHU
/LJKWHU IXHOV ZLOO QRW SURGXFH WKH UDWHG SRZHU /LJKWHU
IXHOV PD\ DOVR EH D EOHQG RI HWKDQRO RU PHWKDQRO ZLWK
GLHVHO IXHO %OHQGLQJ DOFRKRO RU JDVROLQH ZLWK GLHVHO
IXHO ZLOO FUHDWH DQ H[SORVLYH DWPRVSKHUH LQ WKH IXHO
WDQN ,Q DGGLWLRQ ZDWHU FRQGHQVDWLRQ LQ WKH WDQN FDQ
FDXVH WKH DOFRKRO WR VHSDUDWH LQ WKH WDQN
0L[LQJ DOFRKRO RU JDVROLQH ZLWK GLHVHO IXHO FDQ
SURGXFH DQ H[SORVLYH PL[WXUH LQ WKH HQJLQH FUDQN
FDVH RU IXHO WDQN
3HUVRQDO LQMXU\ DQG GDPDJH WR WKH HQJLQH PD\ UH
VXOW &DWHUSLOODU UHFRPPHQGV DJDLQVW WKLV
SUDFWLFH
127,&(
0L[LQJ DOFRKRO RU JDVROLQH ZLWK GLHVHO IXHO PD\ FDXVH
GDPDJH WR WKH HQJLQH &DWHUSLOODU UHFRPPHQGV
DJDLQVW WKLV SUDFWLFH :DWHU FRQGHQVDWLRQ LQ WKH IXHO
WDQN FDQ FDXVH WKH DOFRKRO WR VHSDUDWH ZKLFK FRXOG
FDXVH GDPDJH WR WKH HQJLQH
+HDYLHU IXHOV WHQG WR FUHDWH PRUH GHSRVLWV IURP
FRPEXVWLRQ 'HSRVLWV IURP FRPEXVWLRQ FDQ FDXVH
DEQRUPDO F\OLQGHU OLQHU DQG ULQJ ZHDU :HDU LV PRVW
QRWLFHDEOH LQ VPDOOHU GLHVHO HQJLQHV WKDW RSHUDWH DW
KLJKHU VSHHGV
*XPV DQG 5HVLQV
7KH JXPV DQG UHVLQV WKDW RFFXU LQ GLHVHO IXHO DUH WKH
UHVXOW RI GLVVROYHG R[LGDWLRQ SURGXFWV LQ WKH IXHO WKDW
GR QRW HYDSRUDWH HDVLO\ 7KH SURGXFWV WKDW DUH
GLVVROYHG LQ WKH IXHO DOVR GR QRW EXUQ FOHDQO\
([FHVVLYH JXP LQ WKH IXHO ZLOO FRDW WKH LQVLGH RI IXHO
OLQHV SXPSV DQG LQMHFWRUV ([FHVVLYH JXP ZLOO DOVR
LQWHUIHUH ZLWK WKH FORVH WROHUDQFHV RI WKH PRYLQJ SDUWV
RI WKH IXHO V\VWHPV *XP DQG UHVLQ LQ WKH IXHO ZLOO DOVR
FDXVH WKH ILOWHU WR SOXJ UDSLGO\ 2[LGDWLRQ RI WKH IXHO
ZLOO RFFXU DQG WKH IRUPDWLRQ RI DGGLWLRQDO JXPV DQG
UHVLQV ZLOO RFFXU GXULQJ IXHO VWRUDJH 7KH VWRUDJH WLPH
IRU IXHO PXVW EH PLQLPL]HG LQ RUGHU WR KHOS UHGXFH WKH
IRUPDWLRQ RI JXPV DQG UHVLQV
1RWH (YHQ ZKHQ DOO IXHO VWRUDJH PDLQWHQDQFH
SUDFWLFHV DUH IROORZHG &DW UHFRPPHQGV D PD[LPXP
RI \HDU IURP SURGXFWLRQ IRU GLVWLOODWH GLHVHO IXHO
VWRUDJH DQG D PD[LPXP RI PRQWKV IURP SURGXFWLRQ
IRU ELRGLHVHO DQG EOHQGHG ELRGLHVHO VWRUDJH 6WRUDJH
OLIH IRU ELRGLHVHO DQG ELRGLHVHO EOHQGV WKDW DUH JUHDWHU
WKDQ % PD\ EH PXFK VKRUWHU WKDQ PRQWKV
7KH 7KHUPDO 6WDELOLW\ DQG 2[LGDWLRQ
6WDELOLW\ RI )XHO
'LHVHO IXHOV FDQ GHWHULRUDWH UDSLGO\ IRU YDULRXV
UHDVRQV :KHQ WKH IXHO LV VWUHVVHG DQG VWRUHG IRU
ORQJ LQWHUYDOV GHJUDGDWLRQ DQG R[LGDWLRQ FDQ RFFXU
'HJUDGDWLRQ DQG R[LGDWLRQ DUH FRPSOH[ FKHPLFDO
FKDQJHV 7KHVH FKDQJHV OHDG WR GHSRVLWV RU
VHGLPHQW IURP FHUWDLQ K\GURFDUERQV DQG WUDFHV RI
QDWXUDOO\ RFFXUULQJ QLWURJHQ DQG VXOIXU FRQWDLQLQJ
FRPSRXQGV LQ WKH IXHO )XHO FRPSRVLWLRQ DQG
HQYLURQPHQWDO IDFWRUV LQIOXHQFH WKH SURFHVV
'LHVHO IXHO LV EHLQJ XVHG DV D FRRODQW IRU KLJK
SUHVVXUH IXHO LQMHFWLRQ V\VWHPV ZLWK KLJK WHPSHUDWXUH
IXHO ZHWWHG ZDOOV 7KH IXHO LQ WKH IXHO V\VWHPZLOO EH
VWUHVVHG 7KH WKHUPDO VWUHVV DQG DQ LQFUHDVH LQ
UHFLUFXODWLRQ IXHO WHPSHUDWXUH LV RIWHQ UHVSRQVLEOH IRU
IXHO GHJUDGDWLRQ *XPV UHVLQV VHGLPHQW DQG
GHSRVLWV ZLOO IRUP ZKLFK FDQ FDXVH IXHO IORZ
UHVWULFWLRQ WKURXJK IXHO ILOWHUV DQG IXHO LQMHFWLRQ
V\VWHPV
&HUWDLQ SURGXFWV DUH RIWHQ VWRUHG IRU ORQJ SHULRGV ZLWK
WKH IXHO LQ WKH IXHO V\VWHP 7KH IXHO LV H[SRVHG WR
R[\JHQ &RPSOH[ UHDFWLRQV EHWZHHQ WKH R[\JHQ DQG
WKH IXHO FRPSRQHQWV FDQ JHQHUDWH IXHO SDUWLFXODWHV
7KH SDUWLFXODWHV LQ WKH IXHO V\VWHP FDQ WXUQ LQWR WKH
VOXGJH WKDW LV IRXQG LQ IXHO WDQNV IXHO OLQHV DQG WKH
IXHO ILOWHUV 7KH SHUIRUPDQFH RI WKH IXHO V\VWHP ZLOO
GHWHULRUDWH 'HJUDGDWLRQ DOVR OHDGV WR D SOXJJHG IXHO
ILOWHU D UHVWULFWLRQ WR WKH IXHO OLQH DQG GHSRVLW
IRUPDWLRQ LQ WKH IXHO LQMHFWLRQ QR]]OH
%LRGLHVHO DQG EOHQGV RI ELRGLHVHO KDYH SRRU WKHUPDO
VWDELOLW\ DQG R[LGDWLRQ VWDELOLW\ FRPSDUHG WR SHWUROHXP
GLVWLOODWH GLHVHO IXHOV 7KH XVH RI WKHVH ELRGLHVHOV DQG
EOHQGV RI ELRGLHVHO FDQ DFFHOHUDWH WKH SUREOHPV WKDW
DUH DGGUHVVHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ 8VLQJ
ELRGLHVHO EOHQGV DERYH WKH PD[LPXP OHYHO DSSURYHG
IRU WKH HQJLQH LV QRW UHFRPPHQGHG
7KHUPDO DQG R[LGDWLYH GHJUDGDWLRQ RI GLHVHO IXHO FDQ
UHVXOW LQ D GDUNHQLQJ RI IXHO FRORU )XHO FRORU LV QRW
QHFHVVDULO\ DQ LQGLFDWLRQ RI H[FHVVLYH GHJUDGDWLRQ
WKDW ZLOO OHDG WR WKH SUREOHPV RXWOLQHG LQ WKLV 6SHFLDO
3XEOLFDWLRQ %XW GDUNHQHG IXHO FRORU FDQ EH DQ
LQGLFDWRU RI GHJUDGDWLRQ OHDGLQJ WR FRQFHUQV DERXW
WKH VWDELOLW\ RI GDUNHQHG IXHO 7KHUPDO R[LGDWLRQ DQG
R[LGDWLYH VWDELOLW\ WHVWV VKRXOG EH UXQ WR FRQILUP
DFWXDO IXHO GHJUDGDWLRQ
6(%8
)XHO 6SHFLILFDWLRQV
)XHO 5HFRPPHQGDWLRQV
7KHUPDO 6WDELOLW\
&DW UHFRPPHQGV WKH XVH RI WKH ³$FFHOHUDWHG )XHO 2LO
6WDELOLW\ 7HVW $670 ' ´ 7KLV WHVW PHWKRG
GHWHUPLQHV WKH LQVWDELOLW\ RI D IXHO VXEMHFWHG WR D
WKHUPDO GHJUDGDWLRQ SURFHVV 7KLV WHVW H[SRVHV WKH
IXHO WR FRQGLWLRQV WKDW DUH VLPLODU WR DFWXDO RSHUDWLQJ
FRQGLWLRQV ZKHQ WKH IXHO FRROV WKH LQMHFWRUV GXULQJ WKH
HQJLQH RSHUDWLRQ
7KH WHVW LV SHUIRUPHG E\ XVLQJ D VSHFWURSKRWRPHWHU
7KH SHUFHQWDJH UHIOHFWDQFH RI IXHO VKRXOG QRW EH OHVV
WKDQ SHUFHQW DIWHU DJLQJ IRU KRXUV DW D
WHPSHUDWXUH RI & ) 2[LGDWLYH 6WDELOLW\ 7HVW
&DW UHFRPPHQGV WKH XVH RI WKH ³2[LGDWLYH 6WDELOLW\
7HVW´ 7KLV WHVW PHWKRG GHWHUPLQHV ORQJWHUP VWRUDJH
RI GLVWLOODWH IXHOV VXFK DV KRPH KHDWLQJ RLOV
NHURVHQH DQG GLHVHO RLOV 7KH WHVW PHWKRG LV QRW
VXLWDEOH IRU KLJKO\ YRODWLOH IXHOV ZLWK IODVK SRLQWV XQGHU
& ) 7KLV WHVW PHWKRG LV XVHG IRU VWRUDJH
VWDELOLW\ ZLWK WKH XVH RI VWDELOL]LQJ DGGLWLYHV DQG
ZLWKRXW WKH XVH RI VWDELOL]LQJ DGGLWLYHV
$V SHU WKH VSHFLILFDWLRQ ³(1 $XWRPRWLYH
)XHOV 'LHVHO´ D WHVW IRU D GLUHFW PHDVXUHPHQW RI
R[LGDWLRQ VWDELOLW\ LV WKH WHVW PHWKRG ³,62 3HWUROHXP SURGXFWV 'HWHUPLQDWLRQ RI WKH R[LGDWLRQ
VWDELOLW\ RI PLGGOH GLVWLOODWH GLHVHO IXHOV´ 7KH IXHO
VDPSOH LV KHDWHG DW & ) IRU KRXUV ZKLOH
EXEEOHV RI R[\JHQ WUDYHO WKURXJK WKH VDPSOH 7KH
UHVXOWLQJ DPRXQW RI VROLG R[LGDWLRQ E\ SURGXFWV LV WKHQ
PHDVXUHG 7KLV WHVW VLPXODWHV WKH R[LGDWLRQ RI IXHO
GXULQJ ORQJWHUP VWRUDJH )RU GLHVHO IXHO WKH
PD[LPXP DPRXQW RI LQVROXEOHV IRUPHG VKRXOG QRW
H[FHHG J SHU FXELF PHWHU
&DW UHFRPPHQGV WKDW IRU GLHVHO ELRGLHVHO RU
ELRGLHVHO EOHQGV WKDW DUH JRLQJ WR EH XVHG VHYHUDO
PRQWKV DIWHU SXUFKDVH DUWLILFLDOO\ DJLQJ WKH IXHO WR
SUHGLFW WKH VWRUDJH VWDELOLW\ IROORZHG E\ DQ DQDO\VLV RI
WKH IXHO )RU PRVW GLVWLOODWH IXHOV WKDW DJH WKH IXHO IRU GD\V DW & ) FDQ VLPXODWH VWRUDJH IRU WR PRQWKV DW W\SLFDO DPELHQW VWRUDJH WHPSHUDWXUHV
$QDO\VLV RI WKLV PDWXUHG IXHO SHU WKH PHWKRGV
GLVFXVVHG LQ WKLV GRFXPHQW FDQ WKHQ EH XVHG WR DLG LQ
SUHGLFWLQJ WKH VWDELOLW\ RI WKH IXHO DIWHU QXPHURXV
PRQWKV RI VWRUDJH $QDO\VLV RI 'LHVHO IXHO VKRXOG
LQFOXGH ³7KHUPDO 6WDELOLW\ $670 '´ ³)XHO
*XPV $670 '´ DQG ³)XHO 6HGLPHQWV $670
'´ $QDO\VLV RI ELRGLHVHO IXHO DQG ELRGLHVHO IXHO
EOHQGV VKRXOG LQFOXGH ³2[LGDWLRQ (1´ ³$FLG
9DOXH $670 '´ ³9LVFRVLW\ $670 '´ DQG
³6HGLPHQWV $670 '´
$ WHVW WKDW FDQ EH XVHG WR KHOS GHWHUPLQH WKH
GHJUDGDWLRQ RI ELRGLHVHO IXHO DQG ELRGLHVHO IXHO EOHQGV
LV WKH PHDVXUHPHQW RI WKH ³$FLG 9DOXH $670 '´
RU ³(1 ´ 7KLV YDOXH UHSUHVHQWV WKH DPRXQW RI
DFLG SUHVHQW LQ WKH ELRGLHVHO IXHO RU ELRGLHVHO EOHQG
IXHO DV D UHVXOW RI GHJUDGDWLRQ 7KH UHTXLUHG OLPLW IRU
% ELRGLHVHO LV JLYHQ LQ ³&DW %LRGLHVHO
VSHFLILFDWLRQ´ LQ WKLV 6SHFLDO 3XEOLFDWLRQ RU LQ ³%
VSHFLILFDWLRQ $670 '´ 7KH UHTXLUHG OLPLW IRU
%% ELRGLHVHO IXHO EOHQG LV JLYHQ LQ ³$670
'´ VSHFLILFDWLRQ
L
)XHO 5HFRPPHQGDWLRQV
60&6 &RGH 127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
'LHVHO HQJLQHV PD\ EXUQ D ZLGH YDULHW\ RI IXHOV
7KHVH IXHOV DUH GLYLGHG LQWR WZR JHQHUDO JURXSV 7KH
WZR JURXSV DUH FDOOHG WKH SUHIHUUHG IXHOV DQG WKH
SHUPLVVLEOH IXHOV
7KH SUHIHUUHG IXHOV SURYLGH PD[LPXP HQJLQH
VHUYLFH OLIH DQG SHUIRUPDQFH 7KH SUHIHUUHG IXHOV
DUH GLVWLOODWH IXHOV 7KHVH IXHOV DUH FRPPRQO\ FDOOHG
GLHVHO IXHO IXUQDFH RLO JDV RLO RU NHURVHQH 7KHVH
IXHOV PXVW PHHW WKH ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH
'LHVHO )XHO IRU 2II+LJKZD\ 'LHVHO (QJLQHV´ IRXQG LQ
WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO )XHO´ DUWLFOH
1RWH 7KH SHUPLVVLEOH IXHOV DUH VRPH FUXGH RLOV
VRPH EOHQGV RI FUXGH RLO ZLWK GLVWLOODWH IXHO VRPH
ELRGLHVHO DQG VRPH PDULQH GLHVHO IXHO 7KHVH IXHOV
DUH QRW VXLWDEOH IRU XVH LQ DOO HQJLQH DSSOLFDWLRQV
7KH DFFHSWDELOLW\ RI WKHVH IXHOV IRU XVH LV GHWHUPLQHG
RQ D FDVH E\ FDVH EDVLV $ FRPSOHWH IXHO DQDO\VLV LV
UHTXLUHG &RQVXOW \RXU &DW GHDOHU IRU IXUWKHU
LQIRUPDWLRQ )RU LQIRUPDWLRQ FRQFHUQLQJ ELRGLHVHO
ELRGLHVHO EOHQGV UHIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ
³%LRGLHVHO´ DUWLFOH
1RWH ([FHSW IRU VRPH ELRGLHVHO SHUPLVVLEOH IXHOV
DUH QRW DFFHSWDEOH IRU XVH LQ RQKLJKZD\
DSSOLFDWLRQV
127,&(
8VH RI SHUPLVVLEOH IXHOV FDQ UHVXOW LQ KLJKHU PDLQWH
QDQFH FRVWV DQG UHGXFHG HQJLQH VHUYLFH OLIH
L
'LHVHO )XHO 5HFRPPHQGDWLRQV
7LHU & 0DULQH (QJLQHV
6(%8
)XHO 6SHFLILFDWLRQV
'LHVHO )XHO 5HFRPPHQGDWLRQV
60&6 &RGH 61 5%±8S
7KH LQIRUPDWLRQ DQG JXLGHOLQHV JLYHQ LQ WKLV 6SHFLDO
3XEOLFDWLRQ ³'LHVHO )XHO´ DSSO\ WR PDULQH HQJLQHV
WKDW XVH GLHVHO IXHOV )ROORZ WKHVH JXLGHOLQHV LQ RUGHU
WR UHGXFH WKH ULVN RI HQJLQH GRZQWLPH 5HIHU WR \RXU
HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU GHWDLOV
VSHFLILF WR \RXU PDULQH HQJLQH &RQVXOW \RXU &DW
GHDOHU IRU PRUH LQIRUPDWLRQ
7KH ,QWHUQDWLRQDO 0DULWLPH 2UJDQL]DWLRQ ,02
UHJXODWHV WKH IXHO VXOIXU OHYHO IRU RFHDQ JRLQJ VKLSV
&XUUHQW PDULQH IXHOV DW VHD WKDW DUH UHJXODWHG E\ WKH
,02 FDQ KDYH VXOIXU OHYHOV XS WR SHUFHQW SSP SULRU WR WKH \HDU $V RI -DQXDU\ VKLSV RSHUDWLQJ LQ LQWHUQDWLRQDO ZDWHUV DUH UHTXLUHG WR
XVH IXHOV ZLWK VXOIXU OHYHOV EHORZ SHUFHQW SSP )XUWKHUPRUH ,02 GHVLJQDWHV FHUWDLQ DUHDV DV 6XOIXU
(PLVVLRQV &RQWURO $UHDV 6(&$ 6KLSV RSHUDWLQJ
ZLWKLQ 6(&$ PXVW RSHUDWH RQ SHUFHQW SSP
VXOIXU IXHO SULRU WR WKH \HDU $IWHU -DQXDU\ VKLSV RSHUDWLQJ ZLWKLQ 6(&$ PXVW RSHUDWH ZLWK
SHUFHQW SSP VXOIXU IXHOV ,02 PD\ FKDQJH
DUHDV FRQVLGHUHG 6(&$ 5HYLHZ DQG IROORZ ORFDO DQG
,02 UHTXLUHPHQWV DQG ORFDO UHJXODWLRQV IRU SODQQHG
GHVWLQDWLRQV 5HIHU WR \RXU HQJLQH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDOIRU DSSURSULDWH PDULQH IXHOV IRU
XVH LQ \RXU HQJLQH
7KH 86 (QYLURQPHQWDO 3URWHFWLRQ $JHQF\ (3$
UHJXODWHV WKH VXOIXU OHYHO RI PDULQH IXHOV LQ WKH 86
ZDWHUZD\V DQG VKRUHV )RU YHVVHOV RSHUDWLQJ
H[FOXVLYHO\ ZLWKLQ 86 ZDWHUV 8OWUD /RZ 6XOIXU 'LHVHO
8/6' LV UHTXLUHG E\ UHJXODWLRQV XQOHVV ORFDO
H[FHSWLRQV H[LVW 9HVVHOV WUDYHOLQJ LQWHUQDWLRQDOO\
XQGHU WKH 86 )ODJ DUH UHTXLUHG WR RSHUDWH RQ 8/6'
UHJDUGOHVV RI GHVWLQDWLRQ DQG ORFDWLRQ 5HIHU WR WKH
UHJXODWLRQV LQ \RXU DUHD RI RSHUDWLRQ ,I \RXU
GHVWLQDWLRQ GRHV QRW KDYH 8/6' EXW \RXU HQJLQH FDQ
RSHUDWH RQ IXHO RWKHU WKDQ 8/6' H[HPSWLRQV FDQ EH
UHTXHVWHG E\ FRQWDFWLQJ WKH (3$ DW WKH IROORZLQJ
DGGUHVV
FRPSOLDQFHLQIR#HSDJRY
5HIHU WR \RXU HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDOIRU IXHOV LQIRUPDWLRQ IRU \RXU HQJLQH
)RUHLJQ IODJJHG YHVVHOV RSHUDWLQJ LQ WKH 86 DUH
UHTXLUHG WR IROORZ ,02 UXOHV ZKLOH VDLOLQJ LQ 86 ZDWHUV
GHVLJQDWHG DV 6(&$ $OZD\V UHIHU WR WKH ORFDO
UHJXODWLRQV DW SRUWV RI FDOO WR GHWHUPLQH IXHO
UHTXLUHPHQWV DV WKH UHJXODWLRQV DUH VXEMHFW WR
FKDQJH
1RWH 8/6' LV EDFNZDUGV FRPSDWLEOH DQG FDQ EH
XVHG LQ PRVW HQJLQH WHFKQRORJLHV 'LHVHO IXHOV ZLWK !
SHUFHQW ! SSP VXOIXU FDQ EH XVHG LQ
HQJLQHV WKDW GR QRW KDYH DIWHUWUHDWPHQW GHYLFHV DQG
ZKHUH SHUPLWWHG E\ ORFDO UHJXODWLRQV
L
'LHVHO )XHO 5HFRPPHQGDWLRQV
0DULQH (QJLQHV DQG &HUWDLQ
6HULHV 6WDWLRQDU\ (QJLQHV
60&6 &RGH 7KH IXHOV GLVFXVVHG LQ WKLV VHFWLRQ DUH DSSOLFDEOH WR
PDULQH HQJLQHV 7KHVH IXHOV FDQ DOVR EH XVHG LQ
FHUWDLQ VWDWLRQDU\ 6HULHV HQJLQHV WKDW KDYH
EHHQ FRQILJXUHG WR XVH PDULQH IXHOV 5HIHU WR WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO RI \RXU HQJLQH
IRU PRUH LQIRUPDWLRQ
0DQ\ GLIIHUHQW QDPHV DUH XVHG IRU PDULQH GLHVHO
IXHOV 7KH GLIIHUHQW QDPHV RIWHQ FDXVH
PLVXQGHUVWDQGLQJ 6RPH VSHFLILFDWLRQV IRU PDULQH
GLHVHO IXHOV VHHP WR EH EDVHG RQ WKH OLPLWV RI WKH IXHO
VXSSOLHUV 7KRVH VSHFLILFDWLRQV PD\ QRW EH DV SUHFLVH
DV RWKHU VSHFLILFDWLRQV VXFK DV $670 IXHO
VSHFLILFDWLRQV
)RXU W\SHV RI PDULQH GLHVHO IXHO DUH UHFRJQL]HG
7KHVH IRXU W\SHV RI PDULQH GLHVHO IXHO DUH DYDLODEOH DW
EXQNHULQJ SRUWV DURXQG WKH ZRUOG 1RW DOO RI WKH W\SHV
DUH DYDLODEOH DW HYHU\ VWDWLRQ
%H DZDUH RI WKH IXHO VXSSOLHU VSHFLILFDWLRQV IRU D
IXHO 'R QRW XVH UHVLGXDO IXHO RU IXHO WKDW LV
EOHQGHG ZLWK UHVLGXDO IXHO LQ GLHVHO HQJLQHV WKDW
DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO
127,&(
+HDY\ IXHO RLO UHVLGXDO IXHO RU EOHQGHG IXHO FDQ EH
XVHG RQO\ LQ &DW 6HULHV HQJLQHV WKDW DUH FRQILJ
XUHG WR XVH KHDY\ IXHO RLO
'2 127 XVH WKHVH W\SHV RI IXHO LQ GLHVHO HQJLQHV WKDW
DUH FRQILJXUHG WR XVH GLVWLOODWH GLHVHO IXHO 'R QRW XVH
WKHVH W\SHV RI IXHO LQ HQJLQHV WKDW DUH 7LHU (3$ FHU
WLILHG )DLOXUH WR IROORZ WKLV UHFRPPHQGDWLRQ ZLOO UHVXOW
LQ VHYHUH ZHDU RI FRPSRQHQWV DQG HQJLQH IDLOXUH
*DV 2LO ± $ OLJKW GLVWLOODWH IXHO ZKLFK GRHV QRW FRQWDLQ
UHVLGXDO IXHO *DV RLO LV DSSUR[LPDWHO\ $670 1R
GLHVHO IXHO
0DULQH 'LHVHO ± $ GLVWLOODWH IXHO WKDW ERLOV DW D KLJKHU
WHPSHUDWXUH WKDQ JDV RLO 7KLV IXHO YDULHV IURP $670
1R WR $670 1R 7KH FRPSRVLWLRQ FDQ YDU\ ZLWKLQ
WKH IROORZLQJ UDQJH $670 1R GLHVHO IXHO 1R WKDW
LV FRQWDPLQDWHG ZLWK KHDYLHU IXHO LQ WKH ERWWRP RI D
WDQNHU DQG 1R WKDW LV EOHQGHG ZLWK DV PXFK DV SHUFHQW RI UHVLGXDO IXHO
127,&(
'R 127 XVH IXHO WKDW LV EOHQGHG ZLWK UHVLGXDO IXHO LQ
GLHVHO HQJLQHV WKDW DUH FRQILJXUHG WR XVH GLVWLOODWH
IXHO 6HYHUH FRPSRQHQW ZHDU DQG FRPSRQHQW IDLOXUHV
ZLOO UHVXOW LI WKLV W\SH RI IXHO LV XVHG LQ GLHVHO HQJLQHV
WKDW DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
7DEOH OLVWV VRPH SHUPLVVLEOH PDULQH GLHVHO IXHOV
%OHQGHG )XHO 2LO ± $ EOHQG RI GLVWLOODWH DQG UHVLGXDO
IXHO 7KLV IXHO LV EOHQGHG WR WKH YLVFRVLW\ WKDW LV
UHTXHVWHG E\ WKH RSHUDWRU RU WKH PDQXIDFWXUHU RI WKH
HQJLQH %OHQGHG IXHO LV DOVR UHIHUUHG WR DV KHDY\ IXHO
RLO +)2 1RWH 'R 127 XVH EOHQGHG IXHO LQ &DW GLHVHO
HQJLQHV WKDW DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO
6HYHUH FRPSRQHQW ZHDU DQG FRPSRQHQW IDLOXUHV ZLOO
UHVXOW LI WKLV W\SH RI IXHO LV XVHG LQ GLHVHO HQJLQHV WKDW
DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO
5HVLGXDO )XHO ± $ UHVLGXH IURP WKH GLVWLOODWLRQ RI
FUXGH RLO LQ D UHILQHU\ 5HVLGXDO IXHO LV DOVR UHIHUUHG WR
DV KHDY\ IXHO RLO +)2 1RWH '2 127 XVH UHVLGXDO IXHO LQ &DW GLHVHO
HQJLQHV WKDW DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO
6HYHUH FRPSRQHQW ZHDU DQG FRPSRQHQW IDLOXUHV ZLOO
UHVXOW LI WKLV W\SH RI IXHO LV XVHG LQ GLHVHO HQJLQHV WKDW
DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO
'2 127 XVH IXHOV WKDW DUH FODVVLILHG DV &,0$& '&
RU ,62 )'0&
7KH XVH RI IXHOV WKDW DUH FODVVLILHG DV &,0$& '& RU
,62 )'0& FDQ UHGXFH WKH VHUYLFH OLIH RI
FRPSRQHQWV
2QO\ XVH IXHOV WKDW PHHW RU H[FHHG &DW
UHFRPPHQGDWLRQV 7KH XVH RI IXHOV WKDW DUH QRW
UHFRPPHQGHG FDQ UHGXFH WKH VHUYLFH OLIH RI
FRPSRQHQWV
7KH FODVVLILFDWLRQV WKDW DUH OLVWHG LQ 7DEOH DUH
HVWDEOLVKHG E\ WKH ,QWHUQDWLRQDO 6WDQGDUGV
2UJDQL]DWLRQ ,62 )XHOV ZKLFK PHHW WKH
FODVVLILFDWLRQV WKDW DUH OLVWHG LQ 7DEOH DUH
SHUPLVVLEOH IRU XVH LQ &DW 6HULHV GLHVHO HQJLQHV
WKDW DUH FRQILJXUHG WR XVH GLVWLOODWH IXHO )XHOV
FODVVLILHG E\ WKH &RXQFLO ,QWHUQDWLRQDO 'HV 0DFKLQHV
D &RPEXVWLRQ &,0$& WKDW DUH HTXLYDOHQW WR WKH ,62
&ODVVLILFDWLRQV LQGLFWHG LQ 7DEOH DUH DOVR
SHUPLVVLEOH IRU XVH LQ &DW DQG & 6HULHV
HQJLQHV
7DEOH 0DULQH 'LVWLOODWH 'LHVHO )XHOV 7KDW $UH 3HUPLVVLEOH IRU 8VH ,Q
&DWHUSLOODU 6HULHV DQG & 6HULHV'LHVHO (QJLQHV
³,62 '0$´
³,62 '0=´
³,62 '0%´
³,62 '0;´
1RWH 8VH RI SHUPLVVLEOH IXHOV FDQ UHVXOW LQ KLJKHU
PDLQWHQDQFH FRVWV DQG UHGXFHG HQJLQH VHUYLFH OLIH
L
'LVWLOODWH 'LHVHO )XHO
60&6 &RGH 1RWH )RU RQKLJKZD\ GLHVHO HQJLQH IOXLGV
UHTXLUHPHQWV UHIHU WR VSHFLILF HQJLQH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDOV DQG DOVR UHIHU WR WKH PRVW
FXUUHQW UHYLVLRQ OHYHO RI 6SHFLDO 3XEOLFDWLRQ
6(%8 ³&DWHUSLOODU 2Q+LJKZD\ 'LHVHO (QJLQH
)OXLGV 5HFRPPHQGDWLRQV´ $OVR FRQVXOW \RXU &DW
GHDOHU
&DW LV QRW LQ WKH SRVLWLRQ WR HYDOXDWH FRQWLQXRXVO\ DQG
PRQLWRU DOO RI WKH PDQ\ ZRUOGZLGH GLVWLOODWH GLHVHO IXHO
VSHFLILFDWLRQV DQG RQJRLQJ UHYLVLRQV WKDW DUH
SXEOLVKHG E\ JRYHUQPHQWV DQG WHFKQRORJLFDO
VRFLHWLHV
7KH ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG
'LHVHO (QJLQHV´ SURYLGHV D NQRZQ UHOLDEOH EDVHOLQH
WR MXGJH WKH H[SHFWHG SHUIRUPDQFH RI GLVWLOODWH GLHVHO
IXHOV WKDW DUH GHULYHG IURP FRQYHQWLRQDO VRXUFHV
FUXGH RLO VKDOH RLO RLO VDQGV ZKHQ XVHG LQ &DW
GLHVHO HQJLQHV
8VH WKH &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ DV WKH
EDVHOLQH 'HWHUPLQH DQ\ SRWHQWLDO HFRQRPLF DQGRU
SHUIRUPDQFH WUDGHRIIV DQG RYHUDOO DFFHSWDELOLW\ ZKHQ
XVLQJ IXHOV RI YDU\LQJ FKDUDFWHULVWLFV DQG TXDOLW\
OHYHOV
:KHQ UHTXLUHG KDYH WKH GLHVHO IXHO WKDW HLWKHU LV
EHLQJ XVHG RU LV SODQQHG WR XVH WHVWHG SHU WKH &DW
GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ
8VH WKH &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ DV D
IXHO TXDOLW\ EDVHOLQH IRU FRPSDULVRQ RI GLVWLOODWH
GLHVHO IXHO DQDO\VLV UHVXOWV $OVR XVH WKH
VSHFLILFDWLRQ DV D EDVHOLQH IRU FRPSDULVRQ RI RWKHU
GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQV
7\SLFDO IXHO FKDUDFWHULVWLFV FDQ EH REWDLQHG IURP
WKH IXHO VXSSOLHU
)XHO SDUDPHWHUV RXWVLGH RI WKH &DW IXHO VSHFLILFDWLRQ
OLPLWV KDYH H[SODLQDEOH FRQVHTXHQFHV
6RPH IXHO SDUDPHWHUV WKDW DUH RXWVLGH RI WKH
VSHFLILFDWLRQ OLPLWV FDQ EH FRPSHQVDWHG IRU IRU
H[DPSOH IXHO FDQ EH FRROHG WR DGGUHVV ORZ
YLVFRVLW\ 6RPH IXHO SDUDPHWHUV WKDW DUH RXWVLGH RI
VSHFLILFDWLRQ OLPLWV PD\ LPSURYH ZLWK WKH XVH RI
DSSURSULDWH DPRXQWV RI SURYHQ IXHO DGGLWLYHV
5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO
)XHO´ DUWLFOH ³$IWHUPDUNHW )XHO $GGLWLYHV´ DQG ³&DW
'LHVHO )XHO &RQGLWLRQHU´ WRSLFV IRU JXLGDQFH
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
7R KHOS HQVXUH RSWLPXP HQJLQH SHUIRUPDQFH D
FRPSOHWH IXHO DQDO\VLV VKRXOG EH REWDLQHG EHIRUH
HQJLQH RSHUDWLRQ 7KH IXHO DQDO\VLV VKRXOG LQFOXGH DOO
RI WKH SURSHUWLHV WKDW DUH OLVWHG LQ WKH ³&DW
6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG 'LHVHO
(QJLQHV´ 7DEOH 1RWH 7KH GLHVHO IXHO FDQQRW KDYH DQ\ YLVXDOO\
DSSDUHQW VHGLPHQW VXVSHQGHG PDWWHU RU
XQGLVVROYHG ZDWHU
'LHVHO )XHOV WKDW PHHW WKH VSHFLILFDWLRQV LQ WDEOH ZLOO KHOS SURYLGH PD[LPXP HQJLQH VHUYLFH OLIH DQG
SHUIRUPDQFH
,Q 1RUWK $PHULFD GLHVHO IXHOV WKDW DUH LGHQWLILHG DV
PHHWLQJ WKH ODWHVW YHUVLRQ RI ³$670 '´ *UDGHV
1R ' RU 1R ' DOO OLVWHG VXOIXU OHYHOV JHQHUDOO\
PHHW WKH WDEOH UHTXLUHPHQWV
,Q (XURSH GLHVHO IXHOV WKDW DUH LGHQWLILHG DV PHHWLQJ
WKH ODWHVW YHUVLRQ RI ³(XURSHDQ 6WDQGDUG (1´
JHQHUDOO\ PHHW WKH WDEOH UHTXLUHPHQWV
7DEOH LV IRU GLHVHO IXHOV WKDW DUH GLVWLOOHG IURP
FRQYHQWLRQDO VRXUFHV FUXGH RLO VKDOH RLO RLO VDQGV 'LHVHO IXHOV IURP RWKHU VRXUFHV FRXOG H[KLELW
GHWULPHQWDO SURSHUWLHV WKDW DUH QRW GHILQHG RU
FRQWUROOHG E\ WKLV VSHFLILFDWLRQ
127,&(
8OWUD /RZ 6XOIXU 'LHVHO 8/6' IXHO SHUFHQW
SSP PJNJ VXOIXU LV UHTXLUHG E\ UHJXODWLRQ IRU
XVH LQ HQJLQHV FHUWLILHG WR QRQURDG 7LHU VWDQGDUGV
86 (3$ 7LHU FHUWLILHG DQG WKDW DUH HTXLSSHG ZLWK
H[KDXVW DIWHUWUHDWPHQW V\VWHPV
(XURSHDQ 8/6' SHUFHQW SSP PJNJ
VXOIXU IXHO LV UHTXLUHG E\ UHJXODWLRQ IRU XVH LQ HQJLQHV
FHUWLILHG WR (XURSHDQ QRQURDG 6WDJH ,,,% DQG QHZHU
VWDQGDUGV DQG DUH HTXLSSHG ZLWK H[KDXVW DIWHUWUHDW
PHQW V\VWHPV
&HUWDLQ JRYHUQPHQWVORFDOLWLHV DQGRU DSSOLFDWLRQV
0$< UHTXLUH WKH XVH RI 8/6' IXHO &RQVXOW IHGHUDO
VWDWH DQG ORFDO DXWKRULWLHV IRU JXLGDQFH RQ IXHO UH
TXLUHPHQWV IRU \RXU DUHD
7\SLFDO DIWHUWUHDWPHQW V\VWHPV LQFOXGH 'LHVHO 3DUWLFX
ODWH )LOWHUV '3) 'LHVHO 2[LGDWLRQ &DWDO\VWV '2& 6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 DQGRU /HDQ
12[ 7UDSV /17 2WKHU V\VWHPV PD\ DSSO\
/RZ VXOIXU GLHVHO /6' IXHO SHUFHQW SSP
PJNJ VXOIXU LV VWURQJO\ UHFRPPHQGHG IRU XVH LQ
HQJLQHV WKDW DUH SUH7LHU PRGHOV ZKLOH GLHVHO IXHO
ZLWK ! SHUFHQW SSP PJNJ VXOIXU LV DF
FHSWDEOH IRU XVH LQ DUHDV RI WKH ZRUOG ZKHUH DOORZHG
E\ ODZ 3UH7LHU HQJLQHV WKDW DUH HTXLSSHG ZLWK D
'LHVHO 2[LGDWLRQ &DWDO\VW '2& UHTXLUH WKH XVH RI
/6' IXHO RU 8/6' IXHO
8/6' IXHO RU VXOIXUIUHH GLHVHO IXHO DUH DSSOLFDEOH IRU
XVH LQ DOO HQJLQHV UHJDUGOHVV RI WKH HQJLQH 7LHU RU
6WDJH
8VH DSSURSULDWH OXEULFDWLQJ RLOV WKDW DUH FRPSDWLEOH
ZLWK WKH HQJLQH FHUWLILFDWLRQ DQG DIWHUWUHDWPHQW V\V
WHP DQG ZLWK WKH IXHO VXOIXU OHYHOV 5HIHU WR WKH ³'LHVHO
)XHO 6XOIXU ,PSDFWV´ DUWLFOH RI WKLV ³)XHOV 6SHFLILFD
WLRQV´ VHFWLRQ DQG WR WKH ³/XEULFDQWV 6SHFLILFDWLRQV´
VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
7KH RYHUDOO TXDOLW\ RI WKH IXHO LV FULWLFDO WR WKH
VXFFHVVIXO RSHUDWLRQ RI HQJLQHV
(QJLQH RSHUDWLQJ FRQGLWLRQV SOD\ D NH\ UROH LQ
GHWHUPLQLQJ WKH HIIHFW WKDW IXHO VXOIXU ZLOO KDYH RQ
HQJLQH GHSRVLWV DQG RQ HQJLQH ZHDU 8VLQJ IXHOV ZLWK
KLJKHU WKDQ UHFRPPHQGHG IXHO VXOIXU OHYHOV FDQ RU ZLOO
FDXVH YDULRXV QHJDWLYH LPSDFWV )RU LQIRUPDWLRQ RQ
IXHO VXOIXU DQG IXHO VXOIXU LPSDFWV UHIHU WR WKH 'LHVHO
)XHO 6XOIXU DUWLFOH LQ WKLV )XHO 6SHFLILFDWLRQV VHFWLRQ
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
127,&(
'R QRW DGG QHZ HQJLQH RLO ZDVWH HQJLQH RLO RU DQ\ RLO
SURGXFW WR WKH IXHO XQOHVV WKH HQJLQH LV GHVLJQHG DQG
FHUWLILHG WR EXUQ GLHVHO HQJLQH RLO IRU H[DPSOH &DWHU
SLOODU256 GHVLJQHG IRU ODUJH HQJLQHV &DWHUSLOODU H[
SHULHQFH KDV VKRZQ WKDW DGGLQJ RLO SURGXFWV WR 7LHU HQJLQH IXHOV 8 6 (3$ 7LHU FHUWLILHG WR (852
6WDJH ,,% DQG ,9 FHUWLILHG HQJLQH IXHOV RU WR WKH IXHOV
RI HQJLQHV HTXLSSHG ZLWK H[KDXVW DIWHUWUHDWPHQW GHYL
FHV ZLOO JHQHUDOO\ FDXVH WKH QHHG IRU PRUH IUHTXHQW
DVK VHUYLFH LQWHUYDOV DQGRU FDXVH ORVV RI
SHUIRUPDQFH
$GGLQJ RLO SURGXFWV WR WKH IXHO PD\ UDLVH WKH VXOIXU
OHYHO RI WKH IXHO DQG PD\ FDXVH IRXOLQJ RI WKH IXHO V\V
WHP DQG ORVV RI SHUIRUPDQFH
&DW GRHV QRW UHTXLUH WKH XVH RI 8/6' LQ 1RQURDG DQG
PDFKLQH DSSOLFDWLRQV WKDW DUH QRW 7LHU 6WDJH ,,,%
6WDJH ,9 FHUWLILHG HQJLQHV 7KHVH HQJLQHV WKDW DUH QRW
HTXLSSHG ZLWK DIWHUWUHDWPHQW GHYLFHV GR QRW UHTXLUH
8/6' )RU 7LHU 6WDJH ,,,%6WDJH ,9 FHUWLILHG
HQJLQHV DOZD\V IROORZ RSHUDWLQJ LQVWUXFWLRQV DQG IXHO
WDQN LQOHW ODEHOV WR LQVXUH WKH FRUUHFW IXHOV DUH XVHG
8/6' DQG DQ\ RWKHU IXHO XVHG LQ &DW HQJLQHV KDYH
WR EH SURSHUO\ IRUPXODWHG E\ WKH IXHO VXSSOLHU )XHOV
PXVW PHHW 6SHFLDO 3XEOLFDWLRQ ³&DWHUSLOODU
6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 2II+LJKZD\
'LHVHO (QJLQHV´ )XHOV WKDW DUH GHILQHG DV ³$670
'´ *UDGH 1R ' 6 RU ³$670 '´ *UDGH
1R ' 6 JHQHUDOO\ PHHW &DW UHTXLUHPHQWV IRU
8/6'
5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³&KDUDFWHULVWLFV RI
'LHVHO )XHO´ DUWLFOH IRU DGGLWLRQDO SHUWLQHQW LQIRUPDWLRQ
FRQFHUQLQJ IXHO OXEULFLW\ IXHO R[LGDWLRQ VWDELOLW\ IXHO
VXOIXU DQG DIWHUWUHDWPHQW GHYLFHV $OVR UHIHU WR
³$670 'D´ WR WKH VSHFLILF HQJLQH 2SHUDWLRQ
DQG 0DLQWHQDQFH 0DQXDO DQG WR DIWHUWUHDWPHQW
GHYLFH GRFXPHQWDWLRQ IRU JXLGDQFH
1RWH &DW VWURQJO\ UHFRPPHQGV WKH ILOWUDWLRQ RI
GLVWLOODWH IXHO DQGRU ELRGLHVHOELRGLHVHO EOHQGV
WKURXJK D IXHO ILOWHU ZLWK D UDWLQJ RI IRXU PLFURQV F
DEVROXWH RU OHVV 7KLV ILOWUDWLRQ VKRXOG EH ORFDWHG RQ
WKH GHYLFH WKDW GLVSHQVHV WKH IXHO WR WKH IXHO WDQN IRU
WKH HQJLQH DQG DOVR RQ WKH GHYLFH WKDW GLVSHQVHV IXHO
IURP WKH EXON VWRUDJH WDQN 6HULHV ILOWUDWLRQ LV
UHFRPPHQGHG
1RWH 7KH RZQHU DQG WKH RSHUDWRU RI WKH HQJLQH KDV
WKH UHVSRQVLELOLW\ RI XVLQJ WKH FRUUHFW IXHO WKDW LV
UHFRPPHQGHG E\ WKH PDQXIDFWXUHU DQG DOORZHG E\
WKH 86 (3$ DQG DV DSSURSULDWH RWKHU UHJXODWRU\
DJHQFLHV
127,&(
2SHUDWLQJ ZLWK IXHOV WKDW GR QRW PHHW &DW UHFRPPHQ
GDWLRQV FDQ FDXVH WKH IROORZLQJ HIIHFWV VWDUWLQJ GLIIL
FXOW\ UHGXFHG IXHO ILOWHU VHUYLFH OLIH SRRU FRPEXVWLRQ
GHSRVLWV LQ WKH IXHO LQMHFWRUV UHGXFHG VHUYLFH OLIH RI
WKH IXHO V\VWHP GHSRVLWV LQ WKH FRPEXVWLRQ FKDPEHU
DQG UHGXFHG VHUYLFH OLIH RI WKH HQJLQH
127,&(
7KH IRRWQRWHV DUH D NH\ SDUW RI WKH ³&DWHUSLOODU 6SHFL
ILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO´ 7DEOH 5HDG $// RI
WKH IRRWQRWHV
)RU DGGLWLRQDO JXLGDQFH UHODWHG WR PDQ\ RI WKH
IXHO FKDUDFWHULVWLFV WKDW DUH OLVWHG UHIHU WR ³&DW
6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG 'LHVHO
(QJLQHV´ WDEOH 7KH YDOXHV RI WKH IXHO YLVFRVLW\ JLYHQ LQ WDEOH DUH
WKH YDOXHV DV WKH IXHO LV GHOLYHUHG WR WKH IXHO LQMHFWLRQ
SXPSV )RU HDVH RI FRPSDULVRQ IXHOV VKRXOG DOVR
PHHW WKH PLQLPXP DQG PD[LPXP YLVFRVLW\
UHTXLUHPHQWV DW & ) WKDW DUH VWDWHG E\ WKH
XVH RI HLWKHU WKH ³$670 '´ WHVW PHWKRG RU WKH
³,62 ´ WHVW PHWKRG ,I D IXHO ZLWK D ORZ YLVFRVLW\ LV
XVHG FRROLQJ RI WKH IXHO PD\ EH UHTXLUHG WR PDLQWDLQ
F6W RU JUHDWHU YLVFRVLW\ DW WKH IXHO LQMHFWLRQ SXPS
)XHOV ZLWK D KLJK YLVFRVLW\ PLJKW UHTXLUH IXHO KHDWHUV
LQ RUGHU WR ORZHU WKH YLVFRVLW\ WR HLWKHU F6W RU OHVV
IRU URWDU\ IXHO LQMHFWLRQ SXPSV RU F6W YLVFRVLW\ RU
OHVV IRU DOO RWKHU IXHO LQMHFWLRQ SXPSV
7KH OXEULFLW\ RI D IXHO LV D FRQFHUQ ZLWK ORZ VXOIXU DQG
XOWUD ORZ VXOIXU IXHO 7R GHWHUPLQH WKH OXEULFLW\ RI WKH
IXHO XVH WKH ³$670 ' +LJK )UHTXHQF\
5HFLSURFDWLQJ 5LJ +)55 ´ WHVW 7KHUH DUH PDQ\
DIWHUPDUNHW DGGLWLYHV WKDW DUH DYDLODEOH WR WUHDW IXHO ,I
WKH OXEULFLW\ RI D IXHO GRHV QRW PHHW WKH PLQLPXP
UHTXLUHPHQWV FRQVXOW \RXU IXHO VXSSOLHU IRU SURSHU
UHFRPPHQGDWLRQV UHJDUGLQJ IXHO DGGLWLYHV $OVR UHIHU
WR WKLV 6SHFLDO 3XEOLFDWLRQ ³&KDUDFWHULVWLFV RI 'LHVHO
)XHO´ DUWLFOH ³$IWHUPDUNHW )XHO $GGLWLYHV´ DQG ³&DW
'LHVHO )XHO &RQGLWLRQHU´ WRSLFV 'R QRW WUHDW WKH IXHO
ZLWKRXW FRQVXOWLQJ WKH IXHO VXSSOLHU 6RPH DGGLWLYHV
DUH QRW FRPSDWLEOH 7KHVH DGGLWLYHV FDQ FDXVH
SUREOHPV LQ WKH IXHO V\VWHP
7DEOH &DW 6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG 'LHVHO
(QJLQHV
6SHFLILFDWLRQV
$670
7HVW
,62 7HVW
PD[LPXP
³'´
³´
PD[LPXP
ZHLJKW
³'´
³´
&DUERQ 5HVLGXH RQ PD[LPXP
ZHLJKW
%RWWRPV
³'´
³´
$URPDWLFV
$VK
5HTXLUHPHQWV
FRQWLQXHG
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
7DEOH FRQWG
7DEOH FRQWG
&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG 'LHVHO
(QJLQHV
&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG 'LHVHO
(QJLQHV
6SHFLILFDWLRQV
6SHFLILFDWLRQV
5HTXLUHPHQWV
PLQLPXP ',
HQJLQHV
&HWDQH 1XPEHU
&ORXG 3RLQW
&RSSHU 6WULS
&RUURVLRQ
PLQLPXP 3&
HQJLQHV
$670
7HVW
³'´
RU
³'´
7KH FORXG SRLQW
PXVW QRW H[FHHG
WKH ORZHVW H[
SHFWHG DPELHQW
WHPSHUDWXUH
³'´
1R PD[LPXP
³'´
,62 7HVW
DW &
)
PD[LPXP 'LVWLOODWLRQ
³'´
1R HTXLYD
OHQW WHVW
6HGLPHQW
PD[LPXP
ZHLJKW
³'´
³´
*XPV DQG 5HVLQV PJ SHU P/
PD[LPXP
³'´
³´
/XEULFLW\
PP
LQFK PD[
LPXP DW &
)
³'´
1R HTXLYD
OHQW WHVW
&OHDQOLQHVV
³'´
³´
³´
³´
³´
DW &
)
PD[LPXP )ODVK 3RLQW
7KHUPDO 6WDELOLW\
$3, *UDYLW\
OHJDO OLPLW
0LQLPXP RI UHIOHFWDQFH DIWHU
DJLQJ IRU PL
QXWHV DW &
)
PLQLPXP
PD[LPXP
³'´
³´
³'´
1R HTXLYD
OHQW WHVW
³'´
1R HTXLYD
OHQW WHVW
3RXU 3RLQW
& ) PLQL
PXP EHORZ DPEL
HQW WHPSHUDWXUH
³'´
³´
6XOIXU
³'´
RU
³'´
³´
RU
³´
.LQHPDWLF 9LVFRVLW\
:DWHU DQG
6HGLPHQW
F6W PLQLPXP
DQG F6W PD[L
PXP DV GHOLYHUHG
WR WKH IXHO LQMHFWLRQ
SXPSV
F6W PLQLPXP
DQG F6W PD[L
PXP DV GHOLYHUHG
WR WKH URWDU\ IXHO
LQMHFWLRQ SXPSV
PD[LPXP
³'´
RU
³'´
³´
FRQWLQXHG
,62 7HVW
PD[LPXP
³'´
$670
7HVW
:DWHU
³´
DW &
)
PD[LPXP
5HTXLUHPHQWV
$OWHUQDWLYHO\ WR HQVXUH D PLQLPXP FHWDQH QXPEHU RI 3& HQ
JLQHV DQG ', HQJLQHV GLVWLOODWH GLHVHO IXHO VKRXOG KDYH D
PLQLPXP FHWDQH LQGH[ RI 3& HQJLQHV DQG ', HQ
JLQHV ZKHQ WKH ³$670 'D´ WHVW PHWKRG LV XVHG $ IXHO
ZLWK D KLJKHU FHWDQH QXPEHU PD\ EH UHTXLUHG IRU RSHUDWLRQ DW D
KLJKHU DOWLWXGH RU LQ FROG ZHDWKHU
'LVWLOODWLRQ RI DW & ) PD[LPXP LV UHFRPPHQGHG
IRU 7LHU HQJLQHV DQG SUHIHUUHG IRU DOO HQJLQHV 'LVWLOODWLRQ RI
DW & ) LV HTXLYDOHQW WR DW & ) 'LVWLOODWLRQ RI DW & ) PD[LPXP LV DFFHSWDEOH IRU
3UH7LHU HQJLQHV
9LD VWDQGDUGV WDEOHV WKH HTXLYDOHQW NJP NLORJUDPV SHU FXELF
PHWHU XVLQJ WKH ³$670 '´ WHVW PHWKRG WHPSHUDWXUH RI
& ) IRU WKH PLQLPXP $3, JUDYLW\ RI LV NJ
P DQG IRU WKH PD[LPXP $3, JUDYLW\ RI LV NJP
)ROORZ WKH IHGHUDO VWDWH ORFDO DQG RWKHU JRYHUQLQJ DXWKRULWLHV
IRU JXLGDQFH FRQFHUQLQJ WKH IXHO UHTXLUHPHQWV LQ \RXU DUHD )RO
ORZ WKH HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO DQG WKH GH
WDLOV SURYLGHG LQ WKLV )XHO VHFWLRQ 8/6' SSP 6
LV UHTXLUHG E\ ODZ IRU 7LHU HQJLQHV DQG HQJLQHV ZLWK DIWHUWUHDW
PHQW GHYLFHV 8/6' DQG /6' SSP 6 DUH UHFRP
PHQGHG IRU SUH7LHU HQJLQHV 'LHVHO IXHO ZLWK ! !
SSP VXOIXU LV DFFHSWDEOH IRU XVH ZKHUH DOORZHG E\ ODZ &RQVXOW
\RXU &DW GHDOHU IRU JXLGDQFH ZKHQ VXOIXU OHYHOV DUH DERYH SSP &HUWDLQ &DW IXHO V\VWHPV DQG HQJLQH FRPSRQHQWV
FDQ RSHUDWH RQ IXHO ZLWK D PD[LPXP VXOIXU FRQWHQW RI 5HIHU
WR WKH VSHFLILF HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO DQG
FRQVXOW \RXU &DW GHDOHU
)ROORZ WKH WHVW FRQGLWLRQV DQG SURFHGXUHV IRU JDVROLQH PRWRU 5HFRPPHQGHG FOHDQOLQHVV OHYHO IRU IXHO DV GLVSHQVHG LQWR PD
FKLQH RU HQJLQH IXHO WDQN LV ³,62 ´ RU FOHDQHU SHU ³,62
´ RU ³$670 '´ 5HIHU WR WKH ³&RQWDPLQDWLRQ &RQWURO´
VHFWLRQ LQ WKLV 6SHFLDO 3XEOLFDWLRQ
7KHUH DUH PDQ\ RWKHU GLHVHO IXHO VSHFLILFDWLRQV WKDW
DUH SXEOLVKHG E\ JRYHUQPHQWV DQG E\ WHFKQRORJLFDO
VRFLHWLHV 8VXDOO\ WKRVH VSHFLILFDWLRQV GR QRW UHYLHZ
DOO WKH UHTXLUHPHQWV WKDW DUH DGGUHVVHG LQ WKH ³&DW
6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG 'LHVHO
(QJLQHV´ 7DEOH 7R KHOS HQVXUH RSWLPXP HQJLQH
SHUIRUPDQFH D FRPSOHWH IXHO DQDO\VLV VKRXOG EH
REWDLQHG EHIRUH HQJLQH RSHUDWLRQ 7KH IXHO DQDO\VLV
VKRXOG LQFOXGH DOO RI WKH SURSHUWLHV WKDW DUH OLVWHG LQ
WKH ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH )XHO IRU 1RQURDG
'LHVHO (QJLQHV´ 7DEOH 6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
127,&(
,Q RUGHU WR PHHW H[SHFWHG IXHO V\VWHP FRPSRQHQW OLIH
PLFURQ F DEVROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV
UHTXLUHG IRU DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG
ZLWK FRPPRQUDLO IXHO V\VWHPV $OVR PLFURQ F DE
VROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV UHTXLUHG IRU
DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG ZLWK XQLW LQ
MHFWHG IXHO V\VWHPV )RU DOO RWKHU &DW GLHVHO HQJLQHV
PRVWO\ ROGHU HQJLQHV ZLWK SXPS OLQH DQG QR]]OH W\SH
IXHO V\VWHPV WKH XVH RI PLFURQ F DEVROXWH RU OHVV
VHFRQGDU\ IXHO ILOWUDWLRQ LV VWURQJO\ UHFRPPHQGHG
1RWH WKDW DOO FXUUHQW &DW GLHVHO HQJLQHV DUH IDFWRU\
HTXLSSHG ZLWK &DW $GYDQFHG (IILFLHQF\ PLFURQ F
DEVROXWH IXHO ILOWHUV
,Q RUGHU WR REWDLQ DGGLWLRQDO LQIRUPDWLRQ RQ &DW
GHVLJQHG DQG SURGXFHG ILOWUDWLRQ SURGXFWV UHIHU WR
WKLV 6SHFLDO 3XEOLFDWLRQ ³5HIHUHQFH 0DWHULDO´ DUWLFOH
³)LOWHUV´ DQG ³0LVFHOODQHRXV´ WRSLFV DQG WKHQ FRQWDFW
\RXU &DW GHDOHU IRU DVVLVWDQFH ZLWK ILOWUDWLRQ
UHFRPPHQGDWLRQV IRU \RXU &DW PDFKLQH
0L[LQJ DOFRKRO RU JDVROLQH ZLWK GLHVHO IXHO FDQ
SURGXFH DQ H[SORVLYH PL[WXUH LQ WKH HQJLQH FUDQN
FDVH RU IXHO WDQN
3HUVRQDO LQMXU\ DQG GDPDJH WR WKH HQJLQH PD\ UH
VXOW &DWHUSLOODU UHFRPPHQGV DJDLQVW WKLV
SUDFWLFH
&RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV IRU )XHOV
)XHOV RI ³,62 ´ FOHDQOLQHVV OHYHO RU FOHDQHU
DV GLVSHQVHG LQWR WKH HQJLQH RU PDFKLQH IXHO WDQN
VKRXOG EH XVHG LQ RUGHU WR UHGXFH SRZHU ORVV
IDLOXUHV DQG UHODWHG GRZQ WLPH RI HQJLQHV 7KLV
FOHDQOLQHVV OHYHO LV SDUWLFXODUO\ LPSRUWDQW IRU QHZ IXHO
V\VWHP GHVLJQV VXFK DV &RPPRQ 5DLO LQMHFWLRQ
V\VWHPV DQG XQLW LQMHFWLRQ V\VWHPV 7KHVH QHZ
LQMHFWLRQ V\VWHP GHVLJQV XWLOL]H KLJKHU IXHO SUHVVXUHV
DQG DUH GHVLJQHG ZLWK WLJKW FOHDUDQFHV EHWZHHQ
PRYLQJ SDUWV LQ RUGHU WR PHHW UHTXLUHG VWULQJHQW
HPLVVLRQV UHJXODWLRQV 3HDN LQMHFWLRQ SUHVVXUHV LQ
FXUUHQW IXHO LQMHFWLRQ V\VWHPV PD\ H[FHHG SVL
&OHDUDQFHV LQ WKHVH V\VWHPV DUH OHVV WKDQ P $V D
UHVXOW SDUWLFOH FRQWDPLQDQWV DV VPDOO DV P FDQ
FDXVH VFRULQJ DQG VFUDWFKLQJ RI LQWHUQDO SXPS DQG
LQMHFWRU VXUIDFHV DQG RI LQMHFWRU QR]]OHV
:DWHU LQ WKH IXHO FDXVHV FDYLWDWLRQ FRUURVLRQ RI IXHO
V\VWHP SDUWV DQG SURYLGHV DQ HQYLURQPHQW ZKHUH
PLFURELDO JURZWK LQ WKH IXHO FDQ IORXULVK 2WKHU
VRXUFHV RI IXHO FRQWDPLQDWLRQ DUH VRDSV JHOV RU
RWKHU FRPSRXQGV WKDW PD\ UHVXOW IURP XQGHVLUDEOH
FKHPLFDO LQWHUDFWLRQV LQ WKH IXHOV SDUWLFXODUO\ LQ 8OWUD
/RZ 6XOIXU 'LHVHO 8/6' *HOV DQG RWKHU
FRPSRXQGV FDQ DOVR IRUP LQ ELRGLHVHO IXHO DW ORZ
WHPSHUDWXUHV RU LI ELRGLHVHO LV VWRUHG IRU H[WHQGHG
SHULRGV 7KH EHVW LQGLFDWLRQ RI PLFURELDO
FRQWDPLQDWLRQ IXHO DGGLWLYHV RU FROG WHPSHUDWXUH JHO
LV YHU\ UDSLG ILOWHU SOXJJLQJ RI EXON IXHO ILOWHUV RU
PDFKLQH IXHO ILOWHUV
,Q RUGHU WR UHGXFH GRZQWLPH GXH WR FRQWDPLQDWLRQ
IROORZ WKHVH IXHO PDLQWHQDQFH JXLGHOLQHV LQ DGGLWLRQ
WR WKH ³*HQHUDO &RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV RU 3UDFWLFHV´ JLYHQ DERYH LQ WKLV
&KDSWHU
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
8VH KLJKTXDOLW\ IXHOV SHU UHFRPPHQGHG DQG
UHTXLUHG VSHFLILFDWLRQV UHIHU WR WKH ³)XHO´ FKDSWHU
LQ WKLV 6SHFLDO 3XEOLFDWLRQ )LOO PDFKLQH IXHO WDQNV ZLWK IXHOV RI ³,62 ´
FOHDQOLQHVV OHYHO RU FOHDQHU LQ SDUWLFXODU IRU
HQJLQHV ZLWK FRPPRQ UDLO DQG XQLW LQMHFWLRQ
V\VWHPV :KHQ \RX UHIXHO WKH PDFKLQH ILOWHU WKH
IXHO WKURXJK D P DEVROXWH ILOWHU %HWD XS
WR LQ RUGHU WR UHDFK WKH UHFRPPHQGHG
FOHDQOLQHVV OHYHO 7KLV ILOWUDWLRQ VKRXOG EH ORFDWHG
DW WKH GHYLFH WKDW GLVSHQVHV WKH IXHO WR WKH HQJLQH
RU PDFKLQH IXHO WDQN ,Q DGGLWLRQ ILOWUDWLRQ DW WKH
GLVSHQVLQJ SRLQW VKRXOG KDYH WKH DELOLW\ WR UHPRYH
ZDWHU WR HQVXUH IXHO LV GLVSHQVHG DW SSP ZDWHU
RU OHVV
&DWHUSLOODU UHFRPPHQGV WKH XVH RI EXON IXHO ILOWHU FRDOHVFHU XQLWV ZKLFK UHPRYH ERWK SDUWLFXODWH
FRQWDPLQDWLRQ DQG ZDWHU LQ D VLQJOH SDVV 7KHVH
XQLWV KDYH WKH DELOLW\ WR FOHDQ IXHO WR ³,62 ´ RU FOHDQHU DQG UHPRYH IUHH ZDWHU WR SSP
PJNJ RU OHVV &DW RIIHUV KHDY\GXW\ ILOWHU FRDOHVFHU XQLWV WR DFFRPPRGDWH IXHOLQJ UDWHV IURP
WR JSP JDOORQV SHU PLQXWH &DW FXVWRP
GHVLJQV ILOWHU FRDOHVFHU XQLWV VSHFLILFDOO\ IRU WKH
FRQGLWLRQV RI IXHO DW WKH ZRUNVLWH LI QHHGHG
(QVXUH WKDW \RX XVH &DW$GYDQFHG (IILFLHQF\ )XHO
)LOWHUV &KDQJH \RXU IXHO ILOWHUV SHU UHFRPPHQGHG
VHUYLFH UHTXLUHPHQWV RU DV QHHGHG
'UDLQ \RXU ZDWHU VHSDUDWRUV GDLO\ SHU WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO RI \RXU
PDFKLQH
'UDLQ \RXU IXHO WDQNV RI VHGLPHQW HYHU\ KRXUV
RU PRQWKV SHU WKH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO RI \RXU PDFKLQH
,QVWDOO DQG PDLQWDLQ D SURSHUO\ GHVLJQHG EXON ILOWHU FRDOHVFHU ILOWUDWLRQ V\VWHP &RQWLQXRXV EXON
ILOWUDWLRQ V\VWHPV PD\ EH UHTXLUHG WR HQVXUH WKDW
GLVSHQVHG IXHO PHHWV WKH FOHDQOLQHVV WDUJHW 5HIHU
WR \RXU &DW GHDOHU IRU DYDLODELOLW\ RI EXON ILOWUDWLRQ
SURGXFWV
&HQWULIXJDO ILOWHUV PD\ QHHG WR EH XVHG DV D SUH
ILOWHU ZLWK IXHO WKDW LV VHYHUHO\ FRQWDPLQDWHG ZLWK
JURVV DPRXQWV RI ZDWHU RU ODUJH SDUWLFXODWH
FRQWDPLQDQWV &HQWULIXJDO ILOWHUV FDQ HIIHFWLYHO\
UHPRYH ODUJH FRQWDPLQDQWV EXW PD\ QRW EH DEOH WR
UHPRYH WKH YHU\ VPDOO DEUDVLYH SDUWLFOHV UHTXLUHG
WR DFKLHYH WKH UHFRPPHQGHG ³,62´ FOHDQOLQHVV
OHYHO %XON ILOWHU FRDOHVFHUV DUH QHFHVVDU\ DV D
ILQDO ILOWHU LQ RUGHU WR DFKLHYH WKH UHFRPPHQGHG
FOHDQOLQHVV OHYHO
,QVWDOO GHVLFFDQW W\SH EUHDWKHUV RI P RU OHVV
DEVROXWH HIILFLHQF\ ZLWK WKH DELOLW\ WR UHPRYH ZDWHU
RQ EXON VWRUDJH WDQNV
)ROORZ SURSHU SUDFWLFHV RI IXHO WUDQVSRUW DQG
ILOWUDWLRQ IURP VWRUDJH WDQN WR WKH PDFKLQH LQ RUGHU
WR DOORZ WKH GHOLYHU\ RI FOHDQ IXHO WR PDFKLQH WDQN
)XHO ILOWUDWLRQ FDQ EH LQVWDOOHG DW HDFK WUDQVSRUW
VWDJH LQ RUGHU WR NHHS WKH IXHO FOHDQ
&RYHU SURWHFW DQG HQVXUH FOHDQOLQHVV RI DOO
FRQQHFWLRQ KRVHV ILWWLQJV DQG GLVSHQVLQJ QR]]OHV
127,&(
,Q RUGHU WR PHHW H[SHFWHG IXHO V\VWHP FRPSRQHQW OLIH
PLFURQ F DEVROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV
UHTXLUHG IRU DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG
ZLWK FRPPRQUDLO IXHO V\VWHPV $OVR PLFURQ F DE
VROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV UHTXLUHG IRU
DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG ZLWK XQLW LQ
MHFWHG IXHO V\VWHPV )RU DOO RWKHU &DW GLHVHO HQJLQHV
PRVWO\ ROGHU HQJLQHV ZLWK SXPS OLQH DQG QR]]OH W\SH
IXHO V\VWHPV WKH XVH RI PLFURQ F DEVROXWH RU OHVV
VHFRQGDU\ IXHO ILOWUDWLRQ LV VWURQJO\ UHFRPPHQGHG
1RWH WKDW DOO FXUUHQW &DW GLHVHO HQJLQHV DUH IDFWRU\
HTXLSSHG ZLWK &DW $GYDQFHG (IILFLHQF\ PLFURQ F
DEVROXWH IXHO ILOWHUV
&RQVXOW \RXU ORFDO &DW GHDOHU IRU DGGLWLRQDO
LQIRUPDWLRQ RQ &DW GHVLJQHG DQG SURGXFHG ILOWUDWLRQ
SURGXFWV
5HIHU WR WKH ³&RQWDPLQDWLRQ &RQWURO´ FKDSWHU LQ WKLV
6SHFLDO 3XEOLFDWLRQ IRU PRUH GHWDLOV
+HDY\ )XHO 2LO 5HVLGXDO )XHO
%OHQGHG )XHO
127,&(
+HDY\ )XHO 2LO +)2 5HVLGXDO IXHO RU %OHQGHG IXHO
PXVW 127 EH XVHG LQ &DWHUSLOODU GLHVHO HQJLQHV H[
FHSW LQ 6HULHV +)2 HQJLQHV %OHQGHG IXHO LV UH
VLGXDO IXHO WKDW KDV EHHQ GLOXWHG ZLWK D OLJKWHU IXHO
FXWWHU VWRFN VR WKDW WKH\ ZLOO IORZ %OHQGHG IXHOV DUH
DOVR UHIHUUHG WR DV KHDY\ IXHO RLOV 6HYHUH FRPSRQHQW
ZHDU DQG FRPSRQHQW IDLOXUHV ZLOO UHVXOW LI +)2 W\SH
IXHOV DUH XVHG LQ HQJLQHV WKDW DUH FRQILJXUHG WR XVH
GLVWLOODWH IXHO
$OWHUQDWLYH )XHOV &ROG :HDWKHU
$SSOLFDWLRQV
,Q H[WUHPH FROG DPELHQW FRQGLWLRQV \RX PD\ FKRRVH
WR XVH WKH GLVWLOODWH IXHOV WKDW DUH VSHFLILHG LQ WDEOH +RZHYHU WKH IXHO WKDW LV VHOHFWHG PXVW PHHW WKH
UHTXLUHPHQWV WKDW DUH VSHFLILHG LQ WKH ³&DW
6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 1RQURDG
'LHVHO (QJLQHV´ 7DEOH 7KHVH IXHOV DUH LQWHQGHG
IRU XVH LQ RSHUDWLQJ WHPSHUDWXUHV WKDW DUH GRZQ WR
í & í ) 6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
1RWH 7KH IXHOV WKDW DUH OLVWHG LQ WDEOH W\SLFDOO\
KDYH PXFK KLJKHU VXOIXU OHYHOV WKDQ WKH SSP
PD[LPXP VXOIXU DOORZHG IRU 8/6' 7KH VXOIXU OHYHOV
IRU WKHVH IXHOV W\SLFDOO\ IDU H[FHHG SSP 7KHVH
IXHOV W\SLFDOO\ ZLOO QRW EH DFFHSWDEOH IRU XVH LQ DUHDV
WKDW UHVWULFW PD[LPXP IXHO VXOIXU OHYHOV WR SSP RI
OHVV
1RWH 7KH IXHOV WKDW DUH OLVWHG LQ WDEOH W\SLFDOO\
KDYH PXFK KLJKHU VXOIXU OHYHOV WKDQ WKH SSP
PD[LPXP VXOIXU DOORZHG LQ WKH (XURSHDQ 6WDQGDUG
³(1 ´ 7KH VXOIXU FRQWHQW RI WKHVH IXHOV
W\SLFDOO\ IDU H[FHHGV SSP 7KHVH IXHOV W\SLFDOO\
ZLOO QRW EH DFFHSWDEOH IRU XVH LQ DUHDV WKDW UHVWULFW
PD[LPXP IXHO VXOIXU OHYHOV WR SSP RU OHVV
7KH IXHO WKDW LV VHOHFWHG PXVW PHHW WKH UHTXLUHPHQWV
WKDW DUH VSHFLILHG LQ ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH
'LHVHO )XHO IRU 1RQURDG 'LHVHO (QJLQHV´ WDEOH &RROLQJ RI WKH IXHO PD\ EH UHTXLUHG WR PDLQWDLQ F6W RU JUHDWHU YLVFRVLW\ DW WKH IXHO LQMHFWLRQ SXPS
&RQVXOW WKH VXSSOLHU IRU WKH UHFRPPHQGHG DGGLWLYHV
LQ RUGHU WR PDLQWDLQ WKH SURSHU IXHO OXEULFLW\
7KLV WDEOH OLVWV IXHO VSHFLILFDWLRQV IRU IXHO DGGLWLYHV
WKDW KDYH QRW EHHQ WHVWHG E\ &DW IRU XVH LQ &DW IXHO
V\VWHPV 7KH XVH RI WKHVH VSHFLILFDWLRQV DOORZHG
DQGRU UHFRPPHQGHG IXHO DGGLWLYHV DUH DW WKH ULVN RI
WKH XVHU
-HW $ LV WKH VWDQGDUG IXHO XVHG E\ 86 FRPPHUFLDO
DLUOLQHV ZKHQ RSHUDWLQJ ZLWKLQ WKH 86 -HW $ LV WKH
VWDQGDUG IXHO XVHG E\ FRPPHUFLDO DLUOLQHV ZRUOGZLGH
3HU ³$670 'D 7DEOH 'HWDLOHG
5HTXLUHPHQWV RI $YLDWLRQ 7XUELQH )XHOV ´-HW $ DQG
-HW $ KDYH LGHQWLFDO UHTXLUHPHQWV H[FHSW IRU
IUHH]LQJ SRLQW -HW $ KDV D IUHH]H SRLQW UHTXLUHPHQW RI
í & í ) YHUVXV WKH -HW $ KDV D IUHH]H SRLQW
UHTXLUHPHQW RI í & í ) EXW WKH IXHO
SXUFKDVHU DQG WKH IXHO VXSSOLHU PD\ DJUHH RQ RWKHU
IUHH]LQJ SRLQWV
7DEOH $OWHUQDWLYH 'LVWLOODWH )XHOV &ROG :HDWKHU $SSOLFDWLRQV
6SHFLILFDWLRQ
*UDGH
³0,/'7/8´
-3
³0,/'7/)´
-3
³$670 'D´
-HW $ -HW $
7KHVH IXHOV DUH OLJKWHU WKDQ WKH 1R JUDGHV RI IXHO
7KH FHWDQH QXPEHU RI WKH IXHOV LQ WDEOH PXVW EH DW
OHDVW ,I WKH YLVFRVLW\ LV EHORZ F6W DW &
) XVH WKH IXHO RQO\ LQ WHPSHUDWXUHV EHORZ &
) 'R QRW XVH DQ\ IXHOV ZLWK D YLVFRVLW\ RI OHVV
WKDQ F6W DW & ) 1RWH )XHO FRROLQJ PD\ EH UHTXLUHG LQ RUGHU WR
PDLQWDLQ WKH PLQLPXP YLVFRVLW\ RI F6W DW WKH IXHO
LQMHFWLRQ SXPS
1RWH 7KHVH IXHOV PD\ QRW SURYH DFFHSWDEOH IRU DOO
DSSOLFDWLRQV
5HQHZDEOH DQG $OWHUQDWLYH )XHOV
5HQHZDEOH IXHOV DUH GHULYHG IURP UHQHZDEOH
UHVRXUFHV VXFK DV SODQWHG FURSV DQG FURS UHVLGXHV
UHIHUUHG WR DV ELRPDVV ZDVWH DOJDH FHOOXORVLF
PDWHULDO \DUG DQG IRRG ZDVWH DQG VR RQ
5HQHZDEOH IXHOV UHGXFH WKH FDUERQ IRRWSULQW RI WKH
IXHOV FRPSDUHG WR IRVVLO IXHOV RQ D /LIH &\FOH $QDO\VLV
EDVLV &DW WKURXJK VXVWDLQDELOLW\ LQLWLDWLYHV VXSSRUWV
WKH GHYHORSPHQW DQG XVH RI UHQHZDEOH IXHOV
5HQHZDEOH IXHOV RWKHU WKDQ ELRGLHVHO DQG
DOWHUQDWLYH IXHOV VXFK DV EXW QRW OLPLWHG WR *DVWR
/LTXLG IXHO DUH W\SLFDOO\ K\GURFDUERQV FRPSRVHG RI
FDUERQ DQG K\GURJHQ $Q H[FHSWLRQ LV ELRGLHVHO
ZKLFK LV DQ R[\JHQDWHG UHQHZDEOH IXHO %LRGLHVHO LV
GLVFXVVHG LQ D VHSDUDWH DUWLFOH LQ WKLV )XHO VHFWLRQ
6LJQLILFDQW UHVHDUFK LV RQ JRLQJ WR GHYHORS UHQHZDEOH
IXHOV DQG SURGXFWLRQ HFRQRP\
&DW LV QRW LQ D SRVLWLRQ WR WHVW DOO YDULHWLHV RI
UHQHZDEOH DQG DOWHUQDWLYH IXHOV WKDW DUH DGYHUWLVHG LQ
WKH PDUNHW SODFH %HIRUH RSHUDWLQJ RQ DQ\ IXHOV RWKHU
WKDQ GLHVHO IXHO RU ELRGLHVHO DV GLVFXVVHG LQ WKLV
)XHOV VHFWLRQ FRQVXOW ZLWK WKH IXHO VXSSOLHU DQG ZLWK
\RXU &DW GHDOHU 'XH WR WKH QDWXUH RI WKH
K\GURFDUERQV WKDW PDNH XS VRPH DOWHUQDWLYH IXHOV LQ
WKH PDUNHWSODFH WKH IXHO PD\ LQKHUHQWO\ KDYH SRRU
OXEULFLW\ SRRU FROGZHDWKHU SHUIRUPDQFH 7KH IXHO
PD\ SRWHQWLDOO\ KDYH FRPSDWLELOLW\ LVVXHV ZLWK IXHO
V\VWHP HODVWRPHUV
,I D UHQHZDEOH RU DOWHUQDWLYH IXHO IXOILOOV WKH
SHUIRUPDQFH UHTXLUHPHQWV GHVFULEHG LQ &DW )XHO
6SHFLILFDWLRQ WKH ODWHVW YHUVLRQ RI ³$670 '´ RU
WKH ODWHVW YHUVLRQ RI ³(1 ´ WKHQ WKLV IXHO RU D
EOHQG RI WKLV IXHO EOHQGHG ZLWK DSSURSULDWH GLVWLOODWH
GLHVHO IXHO FDQ EH XVHG DV D GLUHFW UHSODFHPHQW RI
SHWUROHXP GLHVHO LQ &DW HQJLQHV
&DW LV IROORZLQJ WKH GHYHORSPHQW RI UHQHZDEOH DQG
DOWHUQDWLYH IXHOV DQG WKH UHVSHFWLYH IXHO VSHFLILFDWLRQV
WR HQVXUH VXFFHVVIXO DSSOLFDWLRQ RI WKHVH IXHOV LQ WKH
HQJLQHV ,QIRUPDWLRQ DQG JXLGHOLQHV ZLOO EH SXEOLVKHG
DV WKH SURGXFWLRQ RI WKHVH IXHOV EHFRPHV
HVWDEOLVKHG
$IWHUPDUNHW )XHO $GGLWLYHV
7KHUH DUH PDQ\ GLIIHUHQW W\SHV RI IXHO DGGLWLYHV WKDW
DUH DYDLODEOH WR XVH &DW GRHV QRW JHQHUDOO\
UHFRPPHQG WKH XVH RI IXHO DGGLWLYHV
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
,Q VSHFLDO FLUFXPVWDQFHV &DW UHFRJQL]HV WKH QHHG IRU
IXHO DGGLWLYHV )XHO DGGLWLYHV VKRXOG EH XVHG ZLWK
FDXWLRQ 7KH DGGLWLYH PD\ QRW EH FRPSDWLEOH ZLWK WKH
IXHO 6RPH DGGLWLYHV PD\ SUHFLSLWDWH 7KLV DFWLRQ
FDXVHV GHSRVLWV LQ WKH IXHO V\VWHP 7KH GHSRVLWV PD\
FDXVH VHL]XUH 6RPH DGGLWLYHV PD\ SOXJ IXHO ILOWHUV
6RPH DGGLWLYHV PD\ EH FRUURVLYH DQG VRPH
DGGLWLYHV PD\ EH KDUPIXO WR WKH HODVWRPHUV LQ WKH IXHO
V\VWHP 6RPH DGGLWLYHV PD\ GDPDJH HPLVVLRQ
FRQWURO V\VWHPV 6RPH DGGLWLYHV PD\ UDLVH IXHO VXOIXU
OHYHOV DERYH WKH PD[LPXP DOORZHG E\ WKH 8QLWHG
6WDWHV 86 (QYLURQPHQWDO 3URWHFWLRQ $JHQF\ (3$
RU RWKHU UHJXODWRU\ DJHQFLHV &RQVXOW \RXU IXHO
VXSSOLHU IRU WKRVH FLUFXPVWDQFHV ZKHQ IXHO DGGLWLYHV
DUH UHTXLUHG <RXU IXHO VXSSOLHU FDQ PDNH
UHFRPPHQGDWLRQV IRU DGGLWLYHV WR XVH DQG IRU WKH
SURSHU OHYHO RI WUHDWPHQW
1RWH 0HWDOOLF IXHO DGGLWLYHV FDQ FDXVH IXHO V\VWHP
LQMHFWRU IRXOLQJ DQG DIWHU WUHDWPHQW GHYLFH IRXOLQJ &DW
GLVFRXUDJHV WKH XVH RI PHWDOOLF IXHO DGGLWLYHV LQ PRVW
DSSOLFDWLRQV 0HWDOOLF IXHO DGGLWLYHV VKRXOG RQO\ EH
XVHG LQ DSSOLFDWLRQV ZKHUH WKH XVH LV UHFRPPHQGHG
E\ &DW
1RWH 'LHVHO IXHO DGGLWLYHVFRQGLWLRQHUV PD\ QRW
LPSURYH PDUNHGO\ SRRU GLHVHO IXHO SURSHUWLHV HQRXJK
WR PDNH WKH IXHO DFFHSWDEOH IRU XVH
1RWH )RU EHVW UHVXOWV \RXU IXHO VXSSOLHU VKRXOG WUHDW
WKH IXHO ZKHQ DGGLWLYHV DUH QHHGHG
&DW 'LHVHO )XHO &RQGLWLRQHU
1RWH &DW 'LHVHO )XHO &RQGLWLRQHU SDUW QXPEHU LV WKH RQO\ IXHO DGGLWLYH DYDLODEOH WR WKH HQG
XVHU WKDW LV WHVWHG DQG DSSURYHG E\ &DW IRU XVH LQ &DW
GLHVHO HQJLQHV
&DW 'LHVHO )XHO &RQGLWLRQHU LV D SURSULHWDU\ PHWDO
DQG DVK IUHH IRUPXODWLRQ WKDW KDV EHHQ H[WHQVLYHO\
WHVWHG IRU XVH ZLWK GLVWLOODWH GLHVHO IXHOV IRU XVH LQ &DW
GLHVHO HQJLQHV &DW 'LHVHO )XHO &RQGLWLRQHU KHOSV
DGGUHVV PDQ\ RI WKH FKDOOHQJHV WKDW YDULRXV IXHOV
ZRUOGZLGH SUHVHQW LQ UHJDUGV WR IXHO OLIHVWDELOLW\
HQJLQH VWDUWDELOLW\ LQMHFWRU GHSRVLWV IXHO V\VWHP OLIH
DQG ORQJWHUP HQJLQH SHUIRUPDQFH
1RWH 'LHVHO IXHO DGGLWLYHVFRQGLWLRQHUV PD\ QRW
LPSURYH PDUNHGO\ SRRU GLHVHO IXHO SURSHUWLHV HQRXJK
WR PDNH WKH IXHO DFFHSWDEOH IRU XVH
1RWH )RU PD[LPXP RYHUDOO EHQHILWV DVN \RXU IXHO
VXSSOLHU WR DGG &DW 'LHVHO )XHO &RQGLWLRQHU DW WKH
UHFRPPHQGHG WUHDW UDWH EHIRUH IXHO GHOLYHU\ <RX PD\
DGG &DW 'LHVHO )XHO &RQGLWLRQHU DW WKH
UHFRPPHQGHG WUHDW UDWH GXULQJ WKH HDUO\ ZHHNV RI
IXHO VWRUDJH )ROORZ DOO DSSOLFDEOH QDWLRQDO UHJLRQDO
DQG ORFDO ODZV PDQGDWHV DQG UHJXODWLRQV FRQFHUQLQJ
WKH XVH RI GLHVHO IXHO FRQGLWLRQHUVDGGLWLYHV
&DW 'LHVHO )XHO &RQGLWLRQHU LV D SURYHQ KLJK
SHUIRUPDQFH PXOWLSXUSRVH GLHVHO IXHO FRQGLWLRQHU WKDW
LV GHVLJQHG WR LPSURYH
)XHO HFRQRP\ WKURXJK IXHO V\VWHP FOHDQXS
/XEULFLW\
2[LGDWLRQ VWDELOLW\
'HWHUJHQF\GLVSHUVDQF\
0RLVWXUH GLVSHUVDQF\
&RUURVLRQ SURWHFWLRQ
&HWDQH W\SLFDOO\ FHWDQH QXPEHUV
&DW 'LHVHO )XHO &RQGLWLRQHU KDV EHHQ YDOLGDWHG
WKURXJK ODE DQG ILHOG WHVWV WR LPSURYHUHGXFH GLHVHO
IXHO FRQVXPSWLRQ DQG HPLVVLRQV IRU W\SLFDO IOHHWV
WKURXJK IXHO V\VWHPLQMHFWRU FOHDQXS 7KH FRQGLWLRQHU
KHOSV PDLQWDLQ QHZ HQJLQH SHUIRUPDQFH E\ NHHSLQJ
IXHO V\VWHPV FOHDQ :KLOH IXHO V\VWHPLQMHFWRU
FOHDQXS WDNHV SODFH RYHU WLPH PDLQWDLQLQJ IXHO
V\VWHPLQMHFWRU FOHDQOLQHVV LV DQ RQJRLQJ SURFHVV
'DWD LQGLFDWHV WKDW DYHUDJH IXHO HFRQRP\
LPSURYHPHQWV DFURVV W\SLFDO IOHHWV PD\ EH LQ WKH SHUFHQWDJH UDQJH ,PSURYHPHQWV PD\ YDU\ EDVHG
RQ IDFWRUV VXFK DV HQJLQH PRGHO DJH DQG FRQGLWLRQ
RI WKH HQJLQH DQG DSSOLFDWLRQ
&DW 'LHVHO )XHO &RQGLWLRQHU DOVR UHGXFHV WKH
IRUPDWLRQ RI JXPV UHVLQV DQG VOXGJH DQG GLVSHUVHV
LQVROXEOH JXPV 7KH FRQGLWLRQHU FDQ GUDPDWLFDOO\
LPSURYH IXHO VWRUDJH OLIH UHGXFH IXHOUHODWHG HQJLQH
GHSRVLWV DQG FRUURVLRQ DQG H[WHQG IXHO ILOWHU OLIH
127,&(
8VH RI &DW 'LHVHO )XHO 6\VWHP &OHDQHU RU &DW 'LHVHO
)XHO 6\VWHP &RQGLWLRQHU GRHV QRW OHVVHQ WKH UHVSRQ
VLELOLW\ RI WKH HQJLQH RZQHU DQGRU UHVSRQVLELOLW\ RI WKH
IXHO VXSSOLHU WR IROORZ DOO LQGXVWU\ VWDQGDUG PDLQWH
QDQFH SUDFWLFHV IRU IXHO VWRUDJH DQG IRU IXHO KDQGOLQJ
5HIHU WR WKH ³*HQHUDO )XHO ,QIRUPDWLRQ´ DUWLFOH LQ WKLV
6SHFLDO 3XEOLFDWLRQ IRU DGGLWLRQDO LQIRUPDWLRQ $GGL
WLRQDOO\ XVH RI &DW 'LHVHO )XHO 6\VWHP &OHDQHU RU
&DW 'LHVHO )XHO 6\VWHP &RQGLWLRQHU GRHV 127 OHVV
HQ WKH UHVSRQVLELOLW\ RI WKH RZQHU RI WKH HQJLQH WR XVH
DSSURSULDWH GLHVHO IXHO 5HIHU WR WKH ³)XHO 6SHFLILFD
WLRQV´ VHFWLRQ LQ WKLV 6SHFLDO 3XEOLFDWLRQ 0DLQWHQDQFH
6HFWLRQ IRU JXLGDQFH
&DW VWURQJO\ UHFRPPHQGV WKH XVH RI &DW 'LHVHO )XHO
&RQGLWLRQHU ZLWK ELRGLHVHO DQG ELRGLHVHO EOHQGV &DW
'LHVHO )XHO &RQGLWLRQHU LV VXLWDEOH IRU XVH ZLWK
ELRGLHVHOELRGLHVHO EOHQGV WKDW PHHW &DW ELRGLHVHO
UHFRPPHQGDWLRQV DQG UHTXLUHPHQWV 1RW DOO IXHO
DGGLWLYHV DUH VXLWDEOH IRU XVH ZLWK ELRGLHVHO
ELRGLHVHO EOHQGV 5HDG DQG IROORZ DOO DSSOLFDEOH
ODEHO XVDJH LQVWUXFWLRQV $OVR UHIHU WR WKLV 6SHFLDO
3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO )XHO´ DUWLFOH DQG DOVR
UHIHU WR WKH ³%LRGLHVHO´ DUWLFOH ZKLFK LQFOXGHV &DW
ELRGLHVHO UHFRPPHQGDWLRQV DQG UHTXLUHPHQWV
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
&DW 'LHVHO )XHO &RQGLWLRQHU KDV SURYHQ WR EH
FRPSDWLEOH ZLWK H[LVWLQJ DQG 86 (3$ RQ
KLJKZD\ FHUWLILHG GLHVHO HQJLQH HPLVVLRQ FRQWURO
FDWDO\VWV DQG SDUWLFXODWH ILOWHUV
&OHDQ SHUIRUPDQFHUREELQJ IXHO V\VWHP GHSRVLWV
1RWH :KHQ XVHG DV GLUHFWHG &DW 'LHVHO )XHO
&RQGLWLRQHU ZLOO QRW UDLVH IXHO VXOIXU OHYHOV PHDVXUDEO\
LQ WKH ILQDO IXHODGGLWLYH EOHQG ,Q WKH 86 WKH FXUUHQW
IRUPXODWLRQ RI &DW 'LHVHO )XHO &RQGLWLRQHU PXVW EH
EOHQGHG LQ DW WKH UHFRPPHQGHG WUHDWUDWH DW WKH IXHO
VXSSOLHUGLVWULEXWRU OHYHO IRU XVH LQ RQKLJKZD\ RU
RWKHU DSSOLFDWLRQV ZKHUH XVH RI 8/6' IXHO LV
PDQGDWHG SSP RU OHVV IXHO VXOIXU )ROORZ DOO
DSSOLFDEOH QDWLRQDO UHJLRQDO DQG ORFDO ODZV
PDQGDWHV DQG UHJXODWLRQV FRQFHUQLQJ WKH XVH RI
GLHVHO IXHO FRQGLWLRQHUVDGGLWLYHV
5HVWRUH SRZHU ORVVHV UHVXOWLQJ IURP LQMHFWRU
GHSRVLWV
127,&(
:KHQ XVHG DV GLUHFWHG &DW 'LHVHO )XHO &RQGLWLRQHU
ZLOO QRW UDLVH IXHO VXOIXU OHYHOV PHDVXUDEO\ LQ WKH ILQDO
IXHODGGLWLYH EOHQG )ROORZ DOO DSSOLFDEOH QDWLRQDO UH
JLRQDO DQG ORFDO ODZV PDQGDWHV DQG UHJXODWLRQV
FRQFHUQLQJ WKH XVH RI GLHVHO IXHO FRQGLWLRQHUV
DGGLWLYHV
&DW 'LHVHO )XHO 6\VWHP &OHDQHU
1RWH &DW 'LHVHO )XHO 6\VWHP &OHDQHU SDUW QXPEHU
LV WKH RQO\ IXHO V\VWHP FOHDQHU DYDLODEOH WR
WKH HQG XVHU WKDW LV WHVWHG DQG DSSURYHG E\ &DW IRU
XVH LQ &DW GLHVHO HQJLQHV
&DW 'LHVHO )XHO 6\VWHP &OHDQHU LV D SURYHQ KLJK
SHUIRUPDQFH GHWHUJHQW SURGXFW GHVLJQHG IRU FOHDQLQJ
GHSRVLWV WKDW IRUP LQ WKH IXHO V\VWHP 'HSRVLWV LQ WKH
IXHO V\VWHP UHGXFH V\VWHP SHUIRUPDQFH DQG FDQ
LQFUHDVH IXHO FRQVXPSWLRQ &DW 'LHVHO )XHO 6\VWHP
&OHDQHU DGGUHVVHV WKH GHSRVLWV IRUPHG GXH WR WKH
XVH RI GHJUDGHG GLHVHO IXHO SRRU TXDOLW\ GLHVHO IXHO
DQG GLHVHO IXHO FRQWDLQLQJ KLJK TXDQWLWLHV RI KLJK
PROHFXODU ZHLJKW FRPSRXQGV &DW 'LHVHO )XHO
6\VWHP &OHDQHU DGGUHVVHV GHSRVLWV IRUPHG GXH WR
WKH XVH RI ELRGLHVHO ELRGLHVHO EOHQGV DQG ELRGLHVHO
WKDW GRHV QRW PHHW WKH DSSURSULDWH TXDOLW\
VSHFLILFDWLRQV &RQWLQXHG XVH RI &DW 'LHVHO )XHO
6\VWHP &OHDQHU LV SURYHQ WR LQKLELW WKH JURZWK RI QHZ
GHSRVLWV
&DW 'LHVHO )XHO 6\VWHP &OHDQHU FDQ EH DGGHG
GLUHFWO\ WR GLHVHO IXHO ELRGLHVHO RU ELRGLHVHO EOHQGV
&DW 'LHVHO )XHO 6\VWHP &OHDQHU LV D 8QLWHG 6WDWHV
(QYLURQPHQWDO 3URWHFWLRQ $JHQF\ UHJLVWHUHG IXHO
DGGLWLYH WKDW FDQ EH XVHG ZLWK 8OWUD /RZ 6XOIXU 'LHVHO
)XHO ,Q DGGLWLRQ WKLV FOHDQHU LV DSSURSULDWH IRU XVH
ZLWK RWKHU XOWUD ORZ ORZ DQG KLJKHU VXOIXU GLHVHO IXHOV
DURXQG WKH ZRUOG
&DW 'LHVHO )XHO 6\VWHP &OHDQHU LV D SURYHQ KLJK
SHUIRUPDQFH FOHDQHU WKDW LV GHVLJQHG WR SHUIRUP WKH
IROORZLQJ
5HVWRUH IXHO HFRQRP\ ORVVHV UHVXOWLQJ IURP
LQMHFWRU GHSRVLWV
(OLPLQDWH YLVLEOH EODFN H[KDXVW VPRNH UHVXOWLQJ
IURP LQMHFWRU GHSRVLWV
3UHYHQW WKH IRUPDWLRQ RI QHZ IXHOUHODWHG GHSRVLWV
)RU HQJLQHV H[SHULHQFLQJ SUREOHPV VXFK DV SRZHU
ORVV LQFUHDVHG IXHO FRQVXPSWLRQ RU EODFN VPRNH GXH
WR WKH SUHVHQFH RI IXHOUHODWHG GHSRVLWV LQ IXHO
LQMHFWRUV D KLJKVWUHQJWK FOHDQLQJ F\FOH LV
UHFRPPHQGHG $GG RQH / R] ERWWOH RI &DW
'LHVHO )XHO 6\VWHP &OHDQHU SHU / JDO RI IXHO
2QH ERWWOH FRUUHVSRQGV WR D WUHDW UDWH RI E\
YROXPH 3ULRU WR UHIXHOLQJ SRXU &DW 'LHVHO )XHO
6\VWHP &OHDQHU GLUHFWO\ LQWR WKH IXHO WDQN WKHQ UHILOO
ZLWK IXHO 7KH UHILOOLQJ SURFHVV VKRXOG JLYH
VDWLVIDFWRU\ PL[LQJ RI WKH FOHDQHU 7KH FOHDQHU ZLOO
EHJLQ WR EH HIIHFWLYH LPPHGLDWHO\ 7HVWLQJ KDV VKRZQ
PRVW GHSRVLWV DUH FOHDQHG DQG UHODWHG LVVXHV DUH
UHVROYHG DIWHU KRXUV RI RSHUDWLQJ WKH HQJLQH RQ
IXHO ZLWK WKH FOHDQHU )RU PD[LPXP UHVXOWV FRQWLQXH
WR XVH DW WKLV WUHDW UDWH IRU XS WR KRXUV
7R SUHYHQW WKH UHWXUQ RI IXHOUHODWHG GHSRVLWV &DW
'LHVHO )XHO 6\VWHP &OHDQHU DGG WKH FOHDQHU WR WKH
IXHO DW D WUHDW UDWH ,Q WKLV FDVH RQH / R] ERWWOH ZLOO WUHDW / JDOORQV RI IXHO &DW
'LHVHO )XHO 6\VWHP &OHDQHU FDQ EH XVHG RQ DQ RQ
JRLQJ EDVLV ZLWK QR DGYHUVH LPSDFW RQ HQJLQH RU IXHO
V\VWHP GXUDELOLW\
127,&(
8VH RI &DW 'LHVHO )XHO 6\VWHP &OHDQHU RU &DW 'LHVHO
)XHO 6\VWHP &RQGLWLRQHU GRHV QRW OHVVHQ WKH UHVSRQ
VLELOLW\ RI WKH HQJLQH RZQHU DQGRU UHVSRQVLELOLW\ RI WKH
IXHO VXSSOLHU WR IROORZ DOO LQGXVWU\ VWDQGDUG PDLQWH
QDQFH SUDFWLFHV IRU IXHO VWRUDJH DQG IRU IXHO KDQGOLQJ
5HIHU WR WKH ³*HQHUDO )XHO ,QIRUPDWLRQ´ DUWLFOH LQ WKLV
6SHFLDO 3XEOLFDWLRQ IRU DGGLWLRQDO LQIRUPDWLRQ $GGL
WLRQDOO\ XVH RI &DW 'LHVHO )XHO 6\VWHP &OHDQHU RU
&DW 'LHVHO )XHO 6\VWHP &RQGLWLRQHU GRHV 127 OHVV
HQ WKH UHVSRQVLELOLW\ RI WKH RZQHU RI WKH HQJLQH WR XVH
DSSURSULDWH GLHVHO IXHO 5HIHU WR WKH ³)XHO 6SHFLILFD
WLRQV´ VHFWLRQ LQ WKLV 6SHFLDO 3XEOLFDWLRQ 0DLQWHQDQFH
6HFWLRQ IRU JXLGDQFH
&DW VWURQJO\ UHFRPPHQGV WKDW &DW 'LHVHO )XHO
6\VWHP &OHDQHU EH XVHG ZLWK ELRGLHVHO DQG ELRGLHVHO
EOHQGV &DW 'LHVHO )XHO 6\VWHP &OHDQHU LV VXLWDEOH
IRU XVH ZLWK ELRGLHVHOELRGLHVHO EOHQGV WKDW PHHW &DW
ELRGLHVHO UHFRPPHQGDWLRQV DQG UHTXLUHPHQWV 1RW DOO
IXHO FOHDQHUV DUH VXLWDEOH IRU XVH ZLWK ELRGLHVHO
ELRGLHVHO EOHQGV 5HDG DQG IROORZ DOO DSSOLFDEOH ODEHO
XVDJH LQVWUXFWLRQV $OVR UHIHU WR WKLV 6SHFLDO
3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO )XHO´ DUWLFOH DQG DOVR
UHIHU WR WKH ³%LRGLHVHO´ DUWLFOH ZKLFK LQFOXGHV &DW
ELRGLHVHO UHFRPPHQGDWLRQV DQG UHTXLUHPHQWV
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
&DW 'LHVHO )XHO 6\VWHP &OHDQHU KDV SURYHQ WR EH
FRPSDWLEOH ZLWK H[LVWLQJ DQG 86 (3$ 7LHU QRQURDG
FHUWLILHG GLHVHO HQJLQH HPLVVLRQ FRQWURO FDWDO\VWV DQG
SDUWLFXODWH ILOWHUV
86 GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ ³$670 '
D´ LQFOXGHV XS WR % SHUFHQW ELRGLHVHO
&XUUHQWO\ DQ\ GLHVHO IXHO LQ WKH 86 PD\ FRQWDLQ XS
WR % ELRGLHVHO IXHO
1RWH :KHQ XVHG DV GLUHFWHG &DW 'LHVHO )XHO
6\VWHP &OHDQHU ZLOO QRW UDLVH IXHO VXOIXU OHYHOV
PHDVXUDEO\ LQ WKH ILQDO IXHODGGLWLYH EOHQG )ROORZ DOO
DSSOLFDEOH QDWLRQDO UHJLRQDO DQG ORFDO ODZV
PDQGDWHV DQG UHJXODWLRQV FRQFHUQLQJ WKH XVH RI
GLHVHO IXHO FRQGLWLRQHUVDGGLWLYHV
(XURSHDQ GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ ³(1 ´
LQFOXGHV XS WR % SHUFHQW DQG LQ VRPH UHJLRQV XS
WR % SHUFHQW ELRGLHVHO $Q\ GLHVHO IXHO LQ (XURSH
PD\ FRQWDLQ XS WR % RU LQ VRPH UHJLRQV XS WR %
ELRGLHVHO IXHO
127,&(
:KHQ XVHG DV GLUHFWHG &DW 'LHVHO )XHO 6\VWHP
&OHDQHU ZLOO QRW UDLVH IXHO VXOIXU OHYHOV PHDVXUDEO\ LQ
WKH ILQDO IXHODGGLWLYH EOHQG %XW LQ WKH 86 DIWHUPDU
NHW IXHO DGGLWLYHV UHWDLO FRQVXPHU OHYHO YHUVXV EXON
IXHO DGGLWLYHV XVHG DW WKH IXHO VXSSOLHUGLVWULEXWRU OHY
HO ZLWK PRUH WKDQ SSP VXOIXU DUH 127 DOORZHG WR
EH XVHG LQ DSSOLFDWLRQV ZKHUH 8/6' XVDJH LV PDQ
GDWHG SSP RU OHVV IXHO VXOIXU 1RWH WKDW &DW 'LH
VHO )XHO 6\VWHP &OHDQHU FRQWDLQV OHVV WKDQ SSP
RI VXOIXU DQG LV DFFHSWDEOH IRU XVH ZLWK 8/6' IXHO
L
%LRGLHVHO
60&6 &RGH 127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
%LRGLHVHO LV D IXHO WKDW FDQ EH PDGH IURP YDULRXV
UHQHZDEOH UHVRXUFHV WKDW LQFOXGH YHJHWDEOH RLOV
DQLPDO IDW DQG ZDVWH FRRNLQJ RLO 6R\EHDQ RLO DQG
UDSHVHHG RLO DUH WKH SULPDU\ YHJHWDEOH RLO VRXUFHV
7KH UDZ RLOV RU DQLPDO IDWV DUH FKHPLFDOO\ SURFHVVHG
HVWHULILHG WR IRUP D IDWW\ DFLG PHWK\O HVWHU UHIHUUHG
WR DV )$0( 7KH HVWHULILHG SURGXFW )$0( LV
ELRGLHVHO IXHO WKDW FDQ EH XVHG LQ FRPSUHVVLRQ
LJQLWLRQ HQJLQHV :LWKRXW WKH FKHPLFDO SURFHVVLQJ
UHIHUUHG WR DV HVWHULILFDWLRQ WKH RLOV RU IDWV DUH QRW
VXLWDEOH IRU XVH DV IXHO LQ FRPSUHVVLRQ LJQLWLRQ
HQJLQHV 7R XVH DQ\ RI WKH RLOV RU IDWV OLVWHG DERYH DV
IXHO WKH RLO RU IDW PXVW EH HVWHULILHG DQG WKH ZDWHU DQG
FRQWDPLQDQWV UHPRYHG
)XHO PDGH RI SHUFHQW )$0( LV UHIHUUHG WR DV
% ELRGLHVHO RU QHDW ELRGLHVHO
%LRGLHVHO FDQ EH EOHQGHG ZLWK GLVWLOODWH GLHVHO IXHO
7KH EOHQGV FDQ EH XVHG DV IXHO 7KH PRVW FRPPRQO\
DYDLODEOH ELRGLHVHO EOHQGV DUH % ZKLFK LV SHUFHQW
ELRGLHVHO DQG SHUFHQW GLVWLOODWH GLHVHO IXHO DQG
% ZKLFK LV SHUFHQW ELRGLHVHO DQG SHUFHQW
GLVWLOODWH GLHVHO IXHO 1RWH WKH SHUFHQWDJHV DUH
YROXPHEDVHG
1RWH 7KH XVHU RI WKH HQJLQH KDV WKH UHVSRQVLELOLW\ RI
XVLQJ WKH FRUUHFW IXHO WKDW LV UHFRPPHQGHG E\ WKH
PDQXIDFWXUHU 7KH IXHO PXVW EH DOORZHG E\ WKH 86
(3$ DQG RWKHU DSSURSULDWH UHJXODWRU\ DJHQFLHV
&DW LV QRW LQ D SRVLWLRQ WR HYDOXDWH WKH PDQ\
YDULDWLRQV RI ELRGLHVHO DQG WKH ORQJWHUP HIIHFWV RQ
SHUIRUPDQFH GXUDELOLW\ RU FRPSOLDQFH WR HPLVVLRQV
VWDQGDUGV IRU &DW SURGXFWV
1RWH ,Q RUGHU WR DOLJQ &DW UHFRPPHQGDWLRQV ZLWK WKH
ODWHVW UHYLVLRQ RI ³$670 '´ VSHFLILFDWLRQ IRU %
% EOHQGV DQG WR HQVXUH WKDW ELRGLHVHO IXHO PHHWV
GHILQHG TXDOLW\ VWDQGDUGV &DW UHFRPPHQGDWLRQV IRU
DFFHSWDEOH ELRGLHVHO EOHQG IRU PRVW HQJLQHV KDYH
EHHQ FKDQJHG WR % 'HWDLOV RQ WKH XVH RI KLJKHU
EOHQGV DUH JLYHQ LQ WKLV ³%LRGLHVHO´ VHFWLRQ RI WKLV
6SHFLDO 3XEOLFDWLRQ
127,&(
,Q 1RUWK $PHULFD WKH XVH RI ELRGLHVHO IURP ³%4
´ DFFUHGLWHG SURGXFHUV DQG ³%4´ FHUWLILHG
PDUNHWHUV LV UHTXLUHG 5HIHU WR WKH ³5HFRPPHQGD
WLRQV´ VHFWLRQ IRU GHWDLOV
127,&(
)DLOXUHV WKDW UHVXOW IURP WKH XVH RI DQ\ IXHO DUH QRW
&DWHUSLOODU IDFWRU\ GHIHFWV 7KHUHIRUH WKH FRVW RI UH
SDLU ZRXOG 127 EH FRYHUHG E\ WKH &DWHUSLOODU ZDU
UDQW\ IRU PDWHULDOV DQGRU WKH ZDUUDQW\ IRU
ZRUNPDQVKLS
5HFRPPHQGDWLRQV IRU WKH 8VH RI
%LRGLHVHO LQ &DW 1RQURDG (QJLQHV
5HIHU WR WDEOH DQG WR WKH GHWDLOV SURYLGHG LQ
WKLV VHFWLRQ IRU ELRGLHVHO IXHO UHTXLUHPHQWV
,Q RUGHU WR EH DFFHSWDEOH IRU EOHQGLQJ WKH ELRGLHVHO
FRQVWLWXHQW PXVW PHHW WKH UHTXLUHPHQWV WKDW DUH OLVWHG
LQ ³&DW 6SHFLILFDWLRQ IRU %LRGLHVHO )XHO´ LQ WKLV 6SHFLDO
3XEOLFDWLRQ WKH ODWHVW HGLWLRQ RI ³$670 '´ DQG
RU WKH ODWHVW HGLWLRQ RI ³(1´
%LRGLHVHO EOHQGV RI XS WR % PXVW PHHW WKH
UHTXLUHPHQWV IRU WKH GLVWLOODWH GLHVHO IXHO WKDW DUH OLVWHG
LQ WKH ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU
2Q+LJKZD\ (QJLQHV´ LQ WKLV 6SHFLDO 3XEOLFDWLRQ WKH
ODWHVW HGLWLRQ RI ³$670 '´ DQGRU WKH ODWHVW
HGLWLRQ RI ³(1 ´
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
%LRGLHVHO EOHQGV RI % WR % PXVW PHHW WKH
UHTXLUHPHQWV OLVWHG LQ WKH ODWHVW HGLWLRQ RI ³$670
'´ % WR % DQG PXVW EH RI DQ $3, JUDYLW\ RI
'LVWLOODWH GLHVHO IXHOV WKDW PHHW WKH UHTXLUHPHQWV RI
³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 2Q
+LJKZD\ (QJLQHV´ LQ WKLV 6SHFLDO 3XEOLFDWLRQ WKH
³1DWLRQDO &RQIHUHQFH RQ :HLJKWV DQG
0HDVXUHV´ 1&:0 3UHPLXP 'LHVHO GHILQLWLRQ WKH
ODWHVW HGLWLRQ RI ³$670 ' 6´ GHVLJQDWLRQ DQG
RU WKH ODWHVW HGLWLRQ RI ³(1 ´ VXOIXU IUHH
GHVLJQDWLRQ 1R ' DQG 1R ' DUH H[DPSOHV RI
IXHOV WKDW DUH DFFHSWDEOH IRU FUHDWLQJ ELRGLHVHO
EOHQGV
)RU 7LHU DSSOLFDWLRQV LQ WKH 86 WKH GLHVHO IXHO
SRUWLRQ RI WKH ILQDO EOHQG PXVW PHHW WKH UHTXLUHPHQWV
RI 6 IXHOV SSP VXOIXU GHVLJQDWLRQV LQ WKH ODWHVW
HGLWLRQ RI ³$670 '´ VSHFLILFDWLRQ )RU 6WDJH ,,,%
DQG ODWHU DSSOLFDWLRQV LQ (8 WKH GLHVHO IXHO SRUWLRQ RI
WKH ILQDO EOHQG PXVW PHHW WKH UHTXLUHPHQWV IRU VXOIXU
IUHH SSP VXOIXU GHVLJQDWLRQ LQ WKH ODWHVW HGLWLRQ RI
³(1 ´ 7KH ILQDO EOHQG PXVW KDYH SSP VXOIXU
7DEOH 5HFRPPHQGDWLRQV IRU ELRGLHVHO IXHO DSSOLFDWLRQ LQ &DW 2II+LJKZD\ HQJLQHV
3URGXFWLRQ \HDU7LHU6WDJH
(QJLQH PRGHO
7LHU 6WDJH ,, RU HDUOLHU (PLVVLRQV
5HJXODWLRQV
DQG
& PHFKDQLFDO ( HOHFWURQLF
DQG ( HOHFWURQLF & & & & & & & &
&% &HUWDLQ & 61 &HUWDLQ & 61 &( 0D
FKLQHV DQG 61 ,QGXVWULDO
7LHU ,QWHULP 6WDJH ,,,D ZLWKRXW
DIWHUWUHDWPHQW
& & &% &
7LHU ,QWHULP 6WDJH ,,,E ZLWK DIWHUWUHDWPHQW
GHYLFHV
&
7LHU ,QWHULP 6WDJH ,,,E DQG EH\RQG ZLWK
DIWHUWUHDWPHQW GHYLFHV
$&(57 HQJLQHV &% & & &
& & & & & DQG &
$OO \HDUV SRVW 7LHU 6WDJH ,,
& WKURXJK & &HUWDLQ & $&(57 61 &(8S 0D
FKLQHV DQG 8S ,QGXVWULDO &
0HFKDQLFDO & DQG FHUWDLQ & $&(57
61 &(8S 0DFKLQHV DQG 8S ,QGXVWULDO
$OO \HDUV
( (
( 6HULHV DQG 6HULHV
& & & & & & & 6HU
LHV &0 &0 DQG &0 $&(57 HQJLQHV
VXUH
& & & & & & & & &
DQG &
%LRGLHVHO DFFHSWDEOH EOHQG OHYHOV
8S WR %
8S WR %
8S WR % )RU XVH RI KLJKHU EOHQG OHYHOV XS WR
% FRQVXOW \RXU &DW GHDOHU
8S WR % FDQ EH XVHG LQ WKHVH HQJLQHV % KDV WR EH SHU &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ ³$670 ' RU (1´
0RGHOV ZLWKRXW DIWHUWUHDWPHQW RQO\
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
7DEOH )XHO 5HFRPPHQGDWLRQV IRU &DW 1RQURDG (QJLQHV
%LRGLHVHO %OHQG 6WRFN
&DW ELRGLHVHO VSHFLILFDWLRQ ³$670 '´ RU
³(1´
'LVWLOODWH 'LHVHO )XHO XVHG IRU EOHQGLQJ
)LQDO %OHQG
% &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ
³$670 '´ RU ³(1´
% ³$670 '´ DQG ³$3,´ JUDYLW\ &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ ³$670
'´ RU ³(1´
5HIHU WR 7DEOH LQ WKH %LRGLHVHO VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
5HIHU WR ³&DW 6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 2Q+LJKZD\ (QJLQHV´ LQ WKH )XHO VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
1RWH )RU 7LHU FHUWLILHG 6WDJH ,,,% DQG QHZHU
HQJLQH PRGHOV WKDW DUH HTXLSSHG ZLWK DIWHUWUHDWPHQW
GHYLFHV XVH RQO\ WKH ELRGLHVHO EOHQG OHYHOV WKDW DUH
UHFRPPHQGHG LQ ³5HFRPPHQGDWLRQV IRU ELRGLHVHO
IXHO DSSOLFDWLRQ LQ &DW 1RQURDG (QJLQHV´ LQ WKLV
6SHFLDO 3XEOLFDWLRQ WDEOH 8VH RI ELRGLHVHO EOHQG
OHYHOV KLJKHU WKDQ WKH UHFRPPHQGDWLRQV SURYLGHG LQ
WDEOH FDQ DGYHUVHO\ DIIHFW HQJLQH DQG
DIWHUWUHDWPHQW FRPSRQHQWV GXH WR FRQWDPLQDQWV 7KH
UHSDLU RI DQ\ HQJLQH RU DIWHUWUHDWPHQW FRPSRQHQWV
GXH WR VXFK FRQWDPLQDWLRQ RU GXH WR RWKHU ELRGLHVHO
LPSDFWV ZRXOG QRW EH FRYHUHG XQGHU WKH &DW
ZDUUDQW\ 5HIHU WR ³$GGLWLRQDO 0DLQWHQDQFH
5HTXLUHPHQWV´ WRSLF LQ WKLV 6SHFLDO 3XEOLFDWLRQ
³%LRGLHVHO´ DUWLFOH
1RWH )RU DQG ROGHU HQJLQH PRGHOV IRU XVH RI
EOHQGV RI ELRGLHVHO DERYH % SHUFHQW UHIHU WR
³*XLGHOLQHV DQG SRWHQWLDO LPSDFWV DVVRFLDWHG ZLWK WKH
XVH RI ELRGLHVHO DQG ELRGLHVHO EOHQGV´ WDEOH LQ WKLV
6SHFLDO 3XEOLFDWLRQ IRU WKH JXLGHOLQHV DQG LPSDFWV RI
XVLQJ KLJK ELRGLHVHO EOHQGV &RQVXOW \RXU &DW GHDOHU
IRU JXLGDQFH 8VH WKH &DW 6ā2ā6 6HUYLFHV RLO DQDO\VLV
SURJUDP ZKHQ ELRGLHVHO RU EOHQGV RI ELRGLHVHO WKDW
DUH % SHUFHQW RU DERYH DUH XVHG
(LWKHU ³$670 '´ ³7HVW 0HWKRG IRU
'HWHUPLQDWLRQ RI %LRGLHVHO )DWW\ $FLG 0HWK\O (VWHUV
&RQWHQW LQ 'LHVHO )XHO 2LO 8VLQJ 0LG ,QIUDUHG
6SHFWURVFRS\ )7,5$753/6 0HWKRG ´ RU ³(1
´³ /LTXLG 3HWUROHXP 3URGXFWV 'HWHUPLQDWLRQ
RI IDWW\ DFLG PHWK\O HVWHUV )$0( LQ PLGGOH GLVWLOODWHV
,QIUDUHG VSHFWURVFRS\ PHWKRG´ FDQ EH XVHG IRU
GHWHUPLQLQJ WKH YROXPH SHUFHQW ELRGLHVHO LQ D
ELRGLHVHO EOHQG
)RU DSSOLFDWLRQV UXQQLQJ ELRGLHVHO RU ELRGLHVHO EOHQGV
WKH UHFRPPHQGDWLRQ LV WR XVH HLWKHU &DW 'LHVHO )XHO
6\VWHP &OHDQHU 3DUW QXPEHU RU &DW
'LHVHO )XHO &RQGLWLRQHU 3DUW QXPEHU &DW
'LHVHO )XHO 6\VWHP &OHDQHU XVHG DV QHHGHG RU RQ
DQ RQJRLQJ EDVLV LV PRVW HIIHFWLYH DW FOHDQLQJ DQG
SUHYHQWLQJ WKH IRUPDWLRQ RI IXHOUHODWHG GHSRVLWV &DW
'LHVHO )XHO &RQGLWLRQHU FDQ EH XVHG WR LPSURYH IXHO
VWDELOLW\ DQG FDQ KHOS SUHYHQW WKH IRUPDWLRQ RI IXHO
UHODWHG GHSRVLWV
$GGLWLRQDO PDLQWHQDQFH
UHTXLUHPHQWV
:KHQ ELRGLHVHO IXHO LV XVHG FUDQN FDVH RLO DQG
DIWHUWUHDWPHQW V\VWHPV PD\ EH LQIOXHQFHG 7KLV
LQIOXHQFH LV GXH WR WKH FKHPLFDO FRPSRVLWLRQ DQG
FKDUDFWHULVWLFV RI ELRGLHVHO IXHO VXFK DV GHQVLW\ DQG
YRODWLOLW\ &KHPLFDO FRQWDPLQDQWV FDQ EH SUHVHQW LQ
WKLV IXHO VXFK DV SKRVSKRURXV DONDOL DQG DONDOLQH
PHWDOV VRGLXP SRWDVVLXP FDOFLXP DQG
PDJQHVLXP &UDQNFDVH RLO IXHO GLOXWLRQ FDQ EH KLJKHU ZKHQ
ELRGLHVHO DQGRU ELRGLHVHO EOHQGV DUH XVHG 7KLV
LQFUHDVHG OHYHO RI IXHO GLOXWLRQ ZKHQ XVLQJ
ELRGLHVHO DQGRU ELRGLHVHO EOHQGV LV UHODWHG WR WKH
W\SLFDOO\ ORZHU YRODWLOLW\ RI ELRGLHVHO ,QF\OLQGHU
HPLVVLRQV FRQWURO VWUDWHJLHV XWLOL]HG LQ PDQ\ RI WKH
ODWHVW HQJLQH GHVLJQV PD\ OHDG WR D KLJKHU OHYHO RI
ELRGLHVHO FRQFHQWUDWLRQ LQ WKH VXPS 7KH ORQJWHUP
HIIHFW RI ELRGLHVHO FRQFHQWUDWLRQ LQ FUDQNFDVH RLO LV
FXUUHQWO\ XQNQRZQ 7KH XVH RI &DW 6ā2ā6
6HUYLFHV RLO DQDO\VLV LV UHFRPPHQGHG ZKHQ XS
WR % SHUFHQW DQG ORZHU ELRGLHVHO EOHQGV
DUH XVHG $QDO\VLV LV UHTXLUHG ZKHQ XVLQJ
ELRGLHVHOELRGLHVHO EOHQGV WKDW DUH % RU
DERYH:KHQ UHTXHVWLQJ RLO DQDO\VLV EH VXUH WR
QRWH WKH OHYHO RI ELRGLHVHO EHLQJ XVHG % %
DQG VR RQ %LRGLHVHO IXHO FRQWDLQV PHWDO FRQWDPLQDQWV
SKRVSKRURXV VRGLXP SRWDVVLXP FDOFLXP DQGRU
PDJQHVLXP WKDW IRUP DVK SURGXFWV XSRQ
FRPEXVWLRQ LQ WKH GLHVHO HQJLQH 7KH DVK FDQ
DIIHFW WKH OLIH DQG SHUIRUPDQFH RI DIWHUWUHDWPHQW
HPLVVLRQV FRQWURO GHYLFHV DQG FDQ DFFXPXODWH LQ
'LHVHO 3DUWLFXODWH )LOWHUV '3) 7KH DVK
DFFXPXODWLRQ PD\ FDXVH WKH QHHG IRU PRUH
IUHTXHQW DVK VHUYLFH LQWHUYDOV DQGRU FDXVH ORVV RI
SHUIRUPDQFH
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
)XHO 6\VWHP 'HSRVLWV
%LRGLHVHO DQG ELRGLHVHO EOHQGV DUH NQRZQ WR FDXVH DQ
LQFUHDVH LQ IXHO V\VWHP GHSRVLWV PRVW VLJQLILFDQW RI
ZKLFK DUH GHSRVLWV ZLWKLQ WKH IXHO LQMHFWRU 7KHVH
GHSRVLWV FDQ FDXVH D ORVV LQ SRZHU GXH WR UHVWULFWHG
RU PRGLILHG IXHO LQMHFWLRQ RU FDXVH RWKHU IXQFWLRQDO
LVVXHV DVVRFLDWHG ZLWK WKHVH GHSRVLWV &DW 'LHVHO
)XHO 6\VWHP &OHDQHU SDUW QXPEHU LV PRVW
HIIHFWLYH LQ FOHDQLQJ DQG SUHYHQWLQJ WKH IRUPDWLRQ RI
GHSRVLWV &DW 'LHVHO )XHO &RQGLWLRQHU SDUW QXPEHU
KHOSV WR OLPLW GHSRVLW LVVXHV E\ LPSURYLQJ
WKH VWDELOLW\ RI ELRGLHVHO DQG ELRGLHVHO EOHQGV 7KH
SURGXFWLRQ RI QHZ GHSRVLWV LV DOVR LQKLELWHG
7KHUHIRUH WKH XVH RI &DW 'LHVHO )XHO 6\VWHP
&OHDQHU DQGRU &DW 'LHVHO )XHO &RQGLWLRQHU LV
UHFRPPHQGHG ZKHQ UXQQLQJ DQ\ ELRGLHVHO RU
ELRGLHVHO EOHQGV5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ
³'LVWLOODWH 'LHVHO )XHO´ DUWLFOH ³&DW 'LHVHO )XHO
&RQGLWLRQHU ´ DQG ³&DW 'LHVHO )XHO 6\VWHP &OHDQHU ´
WRSLFV LQ WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO
)XHO´ IRU DGGLWLRQDO LQIRUPDWLRQ
&RQVXOW \RXU &DW GHDOHU IRU DYDLODELOLW\ RI &DW 'LHVHO
)XHO 6\VWHP &OHDQHU DQG &DW 'LHVHO )XHO
&RQGLWLRQHU
*XLGHOLQHV
%LRGLHVHO WKDW PHHWV WKH UHTXLUHPHQWV WKDW DUH OLVWHG
LQ WKH ³&DW 6SHFLILFDWLRQ IRU %LRGLHVHO )XHO´ WKH ODWHVW
HGLWLRQ RI ³$670 '´ RU WKH ODWHVW HGLWLRQ RI ³(1
´ LV QRW H[SHFWHG WR SRVH PDMRU SUREOHPV ZKHQ
EOHQGHG ZLWK DQ DFFHSWDEOH GLVWLOODWH GLHVHO IXHO DW WKH
PD[LPXP VWDWHG SHUFHQWDJHV +RZHYHU WKH IROORZLQJ
UHFRPPHQGDWLRQV VKRXOG EH IROORZHG
1RWH )RU WKHVH UHFRPPHQGDWLRQV WKH FDXWLRQV
JXLGHOLQHV DQG UHFRPPHQGDWLRQV DSSOLFDEOH WR
ELRGLHVHO % DUH DOVR DSSOLFDEOH WR ELRGLHVHO
EOHQGV % % % DQG VR RQ 7KH LPSDFWV RI
ELRGLHVHO EOHQGV KLJKHU WKDQ % DUH LQ JHQHUDO
PRUH VHYHUH WKDQ WKH LPSDFWV RI ELRGLHVHO EOHQGV RI
% RU ORZHU 5HIHU WR 7DEOH RI WKLV %LRGLHVHO
VHFWLRQ IRU PRUH GHWDLOV
1RWH )XHO VWRUDJH WDQNV QHHG WR EH FOHDQHG
WKRURXJKO\ EHIRUH FRQYHUWLQJ WR ELRGLHVHOELRGLHVHO
EOHQGV &RQYHUVLRQ WR ELRGLHVHOELRGLHVHO EOHQGV FDQ
ORRVHQ IXHO V\VWHP DQG IXHO VWRUDJH WDQN GHSRVLWV $OO
WDQN ILOWHUV DQG HQJLQH ILOWHUV PXVW VKRUWHQ WKH FKDQJH
LQWHUYDOV IRU DQ H[WHQGHG WLPH LQ RUGHU WR DOORZ IRU WKLV
FOHDQLQJ HIIHFW
,Q 1RUWK $PHULFD WKH XVH RI ELRGLHVHO IURP ³%4
´ DFFUHGLWHG SURGXFHUV DQG PDUNHWHUV LV
UHTXLUHG /RRN IRU WKH ³%4´ ELRGLHVHO TXDOLW\
DFFUHGLWDWLRQ SURJUDP FHUWLILFDWLRQ ORJR WKDW LV
DYDLODEOH WR GLVWULEXWRUV WKDW PHHW WKH UHTXLUHPHQWV RI
³%4´ )RU PRUH LQIRUPDWLRQ RQ WKH ³%4´
SURJUDP JR WR ³ZZZ%4RUJ´
,Q RWKHU DUHDV RI WKH ZRUOG WKH XVH RI ELRGLHVHO WKDW LV
³%4´ DFFUHGLWHG DQG FHUWLILHG RU WKDW LV
DFFUHGLWHG DQG FHUWLILHG E\ D FRPSDUDEOH ELRGLHVHO
TXDOLW\ ERG\ WR PHHW VLPLODU ELRGLHVHO TXDOLW\ FRQWURO
VWDQGDUGV LV UHTXLUHG
,QIRUPDWLRQ SURYLGHG LQ WKLV WDEOH UHIHUV WR ELRGLHVHO
DQG ELRGLHVHO EOHQGV WKDW IXOO\ FRPSO\ ZLWK WKH
DSSURSULDWH VSHFLILFDWLRQV DV GHVFULEHG LQ WKH
³%LRGLHVHO´ VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ DQG WR
KDQGOLQJ DQG PDLQWHQDQFH SURFHGXUHV WKDW IROORZ
UHFRPPHQGHG JXLGHOLQHV
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
7DEOH 5LVNV DQG *XLGHOLQHV DVVRFLDWHG ZLWK WKH XVH RI ELRGLHVHO DQG ELRGLHVHO EOHQGV 3DUDJUDSK
UHIHUHQFH
5LVN5HFRPPHQGDWLRQ
%
%%
%%
5LVN RI UHGXFWLRQ RI RLO FKDQJH LQWHUYDO
1HJOLJLEOH
/RZ
0HGLXP
5LVN RI IXHO ILOWHUV FRPSDWLELOLW\
1HJOLJLEOH
/RZ
0HGLXP
5LVN RI UHGXFWLRQ RI IXHO ILOWHU FKDQJH
LQWHUYDO
1HJOLJLEOH
0HGLXP
+LJK
%XON ILOWUDWLRQ RI ELRGLHVHO
PLFURQV DEVROXWH
PLFURQV DEVROXWH
PLFURQV DEVROXWH
(QHUJ\ FRQWHQW RI ELRGLHVHO
6LPLODU WR 'LHVHO
0LQRU ORVV RI SHUFHQW
'HWHFWDEOH ORVV RI SHUFHQW
&RPSDWLELOLW\ ZLWK HODVWRPHUV
/RZ
/RZ0HGLXP
+LJK
5LVN RI ORZ DPELHQW WHPSHUDWXUH SURE
OHPV IRU ERWK VWRUDJH DQG RSHUDWLRQ
0HGLXP
0HGLXP+LJK
+LJK
)HHGVWRFN LPSDFW
0HGLXP
0HGLXP
+LJK
5LVN RI R[LGDWLRQ VWDELOLW\ DQG ,QMHFWRU
GHSRVLWV
/RZ
0HGLXP
+LJK
2[LGDWLRQ VWDELOLW\'XUDWLRQ RI VWRUDJH
6LPLODU WR 'LHVHO IXHO
PRQWKV PRQWKV 8VH LQ HQJLQHV ZLWK OLPLWHG RSHUDWLRQDO
WLPH
0D[LPXP DOORZHG
8QDFFHSWDEOH
8QDFFHSWDEOH
5LVN RI PLFURELDO FRQWDPLQDWLRQ DQG
JURZWK
0HGLXP
+LJK
+LJK
1HHG IRU ZDWHU UHPRYDO
0HGLXP
+LJK
+LJK
2LOVLGH VHDO LQFRPSDWLELOLW\
1HJOLJLEOH
0HGLXP
+LJK
0HWDO LQFRPSDWLELOLW\
1HJOLJLEOH
/RZ
+LJK
5HIHU WR WKH SDUDJUDSK UHIHUHQFH QXPEHU IRU GHWDLOV RI HDFK OLVWHG 5LVN5HFRPPHQGDWLRQ
7HVWLQJ RI % EOHQGV LV UHFRPPHQGHG DW PRQWKV RI VWRUDJH DQG RQ D PRQWKO\ EDVLV WKHUHDIWHU 7HVWV VKRXOG LQFOXGH R[LGDWLRQ DFLG QXPEHU
YLVFRVLW\ DQG VHGLPHQWV
% VWRUHG IRU RYHU PRQWKV VKRXOG EH WHVWHG HYHU\ ZHHNV WR HQVXUH WKDW WKH IXHO LV QRW GHJUDGHG 7HVWV VKRXOG LQFOXGH R[LGDWLRQ DFLG
QXPEHU YLVFRVLW\ DQG VHGLPHQWV 7KH XVH RI DSSURSULDWH DGGLWLYHV LV UHTXLUHG LI % LV VWRUHG PRUH WKDQ PRQWKV &RQVXOW \RXU IXHO VXSSOLHU
IRU PRUH LQIRUPDWLRQ ,Q DGGLWLRQ % VKRXOG EH VWRUHG DW WHPSHUDWXUHV RI GHJUHHV & WR GHJUHHV & GHJUHHV ) WR GHJUHHV ) DERYH
WKH FORXG SRLQW
7KH IROORZLQJ DUH WKH SDUDJUDSK UHIHUHQFH QXPEHUV
7KH RLO FKDQJH LQWHUYDO FDQ EH QHJDWLYHO\ DIIHFWHG
E\ WKH XVH RI ELRGLHVHO 8VH 6ā2ā6 6HUYLFHV RLO
DQDO\VLV LQ RUGHU WR PRQLWRU WKH FRQGLWLRQ RI WKH
HQJLQH RLO 6ā2ā6 6HUYLFHV RLO DQDO\VLV ZLOO DOVR
KHOS GHWHUPLQH WKH RLO FKDQJH LQWHUYDO WKDW LV
RSWLPXP
&RQILUP ZLWK WKH ILOWHU PDQXIDFWXUHU WKDW WKH IXHO
ILOWHUILOWHUV WR EH XVHG DUH FRPSDWLEOH ZLWK
ELRGLHVHO )XHO ZDWHU VHSDUDWRUV DUH SUHIHUUHG
ZKHQ ELRGLHVHO LV XVHG
1RWH &DW IXHO ILOWHUV DQG &DW IXHO ZDWHU VHSDUDWRUV
DUH FRPSDWLEOH ZLWK ELRGLHVHO IXHO
&RQYHUVLRQ WR ELRGLHVHO FDQ ORRVHQ IXHO V\VWHP
GHSRVLWV )XHO ILOWHU FKDQJH LQWHUYDOV PXVW EH
VKRUWHQHG IRU DQ H[WHQGHG WLPH LQ RUGHU WR DOORZ IRU
WKLV FOHDQLQJ HIIHFW )LOWHU FKDQJH LQWHUYDO RI KRXUV RU OHVV LV UHFRPPHQGHG IROORZLQJ WKH LQLWLDO
FRQYHUVLRQ WR % ELRGLHVHO EOHQG
)LOWHU ELRGLHVHO DQG ELRGLHVHO EOHQGV WKURXJK D IXHO
ILOWHU ZLWK D UDWLQJ RI IRXU PLFURQV F DEVROXWH RU
OHVV )LOWHUV VKRXOG EH ORFDWHG RQ WKH GHYLFH WKDW
GLVSHQVHV WKH IXHO WR WKH IXHO WDQN IRU WKH HQJLQH
)LOWHUV VKRXOG EH ORFDWHG RQ WKH GHYLFH WKDW
GLVSHQVHV IXHO IURP WKH EXON VWRUDJH WDQN 6HULHV
ILOWUDWLRQ LV UHFRPPHQGHG
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
,Q D FRPSDULVRQ RI GLVWLOODWH IXHOV WR ELRGLHVHO QHDW
ELRGLHVHO % W\SLFDOO\ SURYLGHV OHVV HQHUJ\ SHU
JDOORQ E\ SHUFHQW WR SHUFHQW 'R 127 DWWHPSW
WR FKDQJH WKH HQJLQH UDWLQJ LQ RUGHU WR FRPSHQVDWH
IRU WKH SRZHU ORVV (QJLQH SUREOHPV PD\ RFFXU
ZKHQ WKH HQJLQH LV FRQYHUWHG EDFN WR SHUFHQW
GLVWLOODWH GLHVHO IXHO $Q\ DGMXVWPHQWV WR WKH HQJLQH
WR FRPSHQVDWH IRU WKH SRZHU ORVV PD\ UHVXOW LQ
YLRODWLRQ RI HPLVVLRQV UHJXODWLRQV VXFK DV WKH 86
(3$ DQWLWDPSHULQJ SURYLVLRQV
&RPSDWLELOLW\ RI WKH HODVWRPHUV ZLWK ELRGLHVHO LV
FXUUHQWO\ EHLQJ PRQLWRUHG 7KH FRQGLWLRQ RI VHDOV
DQG KRVHV VKRXOG EH PRQLWRUHG UHJXODUO\
%LRGLHVHO PD\ VRIWHQ GHJUDGH RU OHDN IURP VRPH
W\SHV RI HODVWRPHUV XVHG LQ VHDOV DQG KRVHV 7KH
KLJKHU ELRGLHVHO EOHQG KDV D JUHDWHU WKH ULVN RI
HODVWRPHUUHODWHG LVVXHV
D ,Q JHQHUDO &DW HQJLQHV EXLOW HDUO\ WR PLG V
XVH 9LWRQ VHDOV DQG 9LWRQ 2ULQJV LQ WKH IXHO
V\VWHP 9LWRQ LV FRPSDWLEOH ZLWK ELRGLHVHO
E 1LWULOH KRVHV W\SLFDOO\ XVHG LQ VRPH IXHO
WUDQVIHU OLQHV DUH QRW FRPSDWLEOH ZLWK ELRGLHVHO
0RQLWRU WKH FRQGLWLRQ RI WKH KRVHV DQG FRQILUP
ZLWK WKH KRVH PDQXIDFWXUHU WKDW WKH KRVHV DUH
FRPSDWLEOH ZLWK WKH ELRGLHVHO EOHQG XVHG ,I
QHFHVVDU\ UHSODFH ZLWK KRVHV RI FRPSDWLEOH
PDWHULDOV
%LRGLHVHO PD\ SRVH ORZ DPELHQW WHPSHUDWXUH
SUREOHPV IRU ERWK VWRUDJH DQG RSHUDWLRQ $W ORZ
DPELHQW WHPSHUDWXUHV ELRGLHVHO IXHO PD\ QHHG WR
EH VWRUHG LQ D KHDWHG EXLOGLQJ RU D KHDWHG VWRUDJH
WDQN 7KH IXHO V\VWHP PD\ UHTXLUH KHDWHG IXHO
OLQHV ILOWHUV DQG WDQNV )LOWHUV PD\ SOXJ DQG IXHO LQ
WKH WDQN PD\ VROLGLI\ DW ORZ DPELHQW WHPSHUDWXUHV
LI SUHFDXWLRQV DUH QRW WDNHQ &RQVXOW \RXU ELRGLHVHO
VXSSOLHU IRU DVVLVWDQFH LQ WKH EOHQGLQJ DQG
DWWDLQLQJ RI WKH SURSHU FORXG SRLQW IRU WKH IXHO
1RWH 7KH SHUIRUPDQFH RI FROG IORZ LPSURYHUV FDQ EH
UHGXFHG LQ WKH SUHVHQFH RI ELRGLHVHO IXHO &RQVXOW WKH
IXHO VXSSOLHU IRU DSSURSULDWH FROG IORZ LPSURYHUV LI
QHHGHG
%LRGLHVHO FDQ EH SURGXFHG XVLQJ YDULRXV
UHQHZDEOH VRXUFHV 7KH VRXUFH XVHG FDQ DIIHFW
SURGXFW SHUIRUPDQFH 7ZR RI WKH IXHO
FKDUDFWHULVWLFV DIIHFWHG DUH FROG IORZ DQG R[LGDWLRQ
VWDELOLW\ &ROG IORZ DIIHFWV ILOWHU SOXJJLQJ DQG
R[LGDWLRQ VWDELOLW\ DIIHFWV GHSRVLW IRUPDWLRQ DQG
ELRGLHVHO IXHO VWRUDJH GXUDWLRQ DQG OLIH &RQVXOW
\RXU IXHO VXSSOLHU IRU JXLGDQFH
%LRGLHVHO KDV SRRU R[LGDWLRQ VWDELOLW\ ZKLFK PD\
DFFHOHUDWH IXHO R[LGDWLRQ LQ WKH IXHO V\VWHP
(QJLQHV ZLWK DQ HOHFWURQLF IXHO V\VWHP RSHUDWH DW
KLJKHU WHPSHUDWXUHV ZKLFK PD\ DFFHOHUDWH IXHO
R[LGDWLRQ 2[LGL]HG IXHO FDQ IRUP GHSRVLWV LQ IXHO
LQMHFWLRQ V\VWHPV DQG LQ IXHO V\VWHPV LQ JHQHUDO
5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³'LVWLOODWH 'LHVHO
)XHO´ DUWLFOH ³$IWHUPDUNHW )XHO $GGLWLYHV´ ³&DW
'LHVHO )XHO &RQGLWLRQHU ´ DQG ³&DW 'LHVHO )XHO
6\VWHP &OHDQHU ´ WRSLFV IRU LQIRUPDWLRQ FRQFHUQLQJ
R[LGDWLRQ VWDELOLW\ DQG RWKHU IXHO DGGLWLYHV
3RRU R[LGDWLRQ VWDELOLW\ RI ELRGLHVHO FDQ UHVXOW LQ
ORQJWHUP VWRUDJH SUREOHPV %LRGLHVHO VKRXOG EH
XVHG ZLWKLQ D OLPLWHG WLPH IURP SURGXFWLRQ ,Q RUGHU
WR HQVXUH DSSURSULDWH VWRUDJH GXUDWLRQ WHVWLQJ RI
WKH VWRUHG ELRGLHVHO LV UHFRPPHQGHG 7HVWV VKRXOG
LQFOXGH R[LGDWLRQ DFLG QXPEHU YLVFRVLW\ DQG
VHGLPHQWV 7HVWV VKRXOG EH FRQGXFWHG SHULRGLFDOO\
WR HQVXUH WKDW ELRGLHVHO LV SHU VSHFLILFDWLRQ
$QWLR[LGDQWV DUH UHFRPPHQGHG WR LPSURYH VWDELOLW\
RI ELRGLHVHO &DW 'LHVHO )XHO &RQGLWLRQHU SDUW
QXPEHU RU DSSURSULDWH FRPPHUFLDO
DGGLWLYHV DUH UHFRPPHQGHG &RQVXOW \RXU IXHO
VXSSOLHU IRU PRUH LQIRUPDWLRQ
D % ELRGLHVHO EOHQG FDQ JHQHUDOO\ EH VWRUHG XS
WR PRQWKV 7HVWLQJ RI % EOHQGV LV
UHFRPPHQGHG DW PRQWKV RI VWRUDJH DQG RQ D
PRQWKO\ EDVLV WKHUHDIWHU WR HQVXUH WKDW WKH IXHO
KDV QRW GHJUDGHG
E % ELRGLHVHO FDQ JHQHUDOO\ EH VWRUHG XS WR PRQWKV 7HVWLQJ RI % LV UHFRPPHQGHG DW PRQWKV RI VWRUDJH DQG HYHU\ WZR ZHHNV
WKHUHDIWHU WR HQVXUH WKDW WKH IXHO KDV QRW
GHJUDGHG 7KH XVH RI DSSURSULDWH DGGLWLYHV LV
UHTXLUHG LI % LV VWRUHG PRUH WKDQ PRQWKV
&RQVXOW \RXU IXHO VXSSOLHU IRU PRUH LQIRUPDWLRQ
F % VKRXOG EH VWRUHG DW WHPSHUDWXUHV RI GHJUHHV & WR GHJUHHV & GHJUHHV ) WR GHJUHHV ) DERYH WKH FORXG SRLQW
'XH WR SRRU R[LGDWLRQ VWDELOLW\ DQG RWKHU SRWHQWLDO
LVVXHV &DW UHFRPPHQGV WKDW HQJLQHV ZLWK OLPLWHG
RSHUDWLRQDO WLPH VXFK DV VHDVRQDO XVH RU VWDQGE\
SRZHU JHQHUDWLRQ HLWKHU QRW XVH ELRGLHVHO
ELRGLHVHO EOHQGV RU ZKLOH DFFHSWLQJ VRPH ULVN OLPLW
ELRGLHVHO WR D PD[LPXP RI % ([DPSOHV RI
DSSOLFDWLRQV WKDW VKRXOG OLPLW WKH XVH RI ELRGLHVHO
DUH WKH IROORZLQJ 6WDQGE\ *HQHUDWRU VHWV DQG
FHUWDLQ HPHUJHQF\ YHKLFOHV )RU PRUH LQIRUPDWLRQ
UHIHU WR WKH ³6HDFRQDO 2SHUDWLRQ´ VHFWLRQ
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
D $GGLWLRQ RI &DW 'LHVHO )XHO &RQGLWLRQHU SDUW
QXPEHU RU DQ DSSURSULDWH
FRPPHUFLDO DGGLWLYH FRQWDLQLQJ DQWLR[LGDQWV
R[LGDWLRQ VWDELOLW\ LPSURYHUV LV UHFRPPHQGHG
IRU VWDQGE\ JHQHUDWRU VHWV DQG HPHUJHQF\
YHKLFOHV XVLQJ ELRGLHVHOELRGLHVHO EOHQGV 7KH
FRQGLWLRQHU VKRXOG EH DGGHG ZKHQ WKH HQJLQH
LV IXHOHG RU DV HDUO\ DV SRVVLEOH ZKHQ WKH IXHO
LV GHOLYHUHG DQG VWRUHG 3UHIHUDEO\ WKH
FRQGLWLRQHU RU DGGLWLYH VKRXOG EH DGGHG DV
VRRQ DV SRVVLEOH DIWHU WKH IXHO LV SURGXFHG
E )RU VWDQGE\ JHQHUDWRU VHWV DQG HPHUJHQF\
YHKLFOHV WKDW XVH ELRGLHVHO VDPSOH WKH IXHO LQ
WKH HQJLQH WDQN PRQWKO\ 7HVW WKH IXHO IRU DFLG
QXPEHU DQG R[LGDWLRQ VWDELOLW\ ,I WKH WHVW
UHVXOWV VKRZ WKDW WKH IXHO LV GHJUDGHG DQG WKDW
WKH IXHO LV QRW SHU WKH DSSURSULDWH
VSHFLILFDWLRQV SURYLGHG LQ 7DEOH LQ WKLV
³%LRGLHVHO´ VHFWLRQ GUDLQ WKH WDQN IOXVK WKH
HQJLQH E\ UXQQLQJ XVLQJ KLJKTXDOLW\ IXHO
5HSHDW WKH SURFHVV XQWLO WKH V\VWHP LV FOHDQ
5HILOO ZLWK KLJKTXDOLW\ IXHO IROORZLQJ WKH
UHFRPPHQGDWLRQV SURYLGHG LQ WKLV ³)XHO´
VHFWLRQ
F )RU VWDQGE\ JHQHUDWRU VHWV DQG HPHUJHQF\
YHKLFOHV WKDW XVH ELRGLHVHO &DW UHFRPPHQGV
WKDW WKH IXHO R[LGDWLRQ VWDELOLW\ LV KRXUV RU
PRUH SHU ³(1 ´ WHVW PHWKRG
%LRGLHVHO LV DQ H[FHOOHQW PHGLXP IRU PLFURELDO
FRQWDPLQDWLRQ DQG JURZWK 0LFURELDO FRQWDPLQDWLRQ
DQG JURZWK FDQ FDXVH FRUURVLRQ LQ WKH IXHO V\VWHP
DQG SUHPDWXUH SOXJJLQJ RI WKH IXHO ILOWHU &RQVXOW
\RXU VXSSOLHU RI IXHO DQG DGGLWLYH IRU DVVLVWDQFH LQ
VHOHFWLQJ DSSURSULDWH DQWLPLFURELDO DGGLWLYHV
%LRGLHVHO LV QRW FRPSDWLEOH ZLWK VRPH PHWDOV
%LRGLHVHO RI EOHQGV KLJKHU WKDQ % ZLOO R[LGL]H
DQG IRUP VHGLPHQWV XSRQ ORQJWHUP FRQWDFW ZLWK
OHDG ]LQF WLQ FRSSHU DQG FRSSHU DOOR\V VXFK DV
EUDVV DQG EURQ]H &RQVXOW \RXU GHDOHU IRU PRUH
LQIRUPDWLRQ
1RWH 7KH XVH RI ELRGLHVHO DW D % OHYHO LPSURYHV WKH
OXEULFLW\ RI WKH ILQDO EOHQG E\ DQ HVWLPDWHG SHUFHQW
,QFUHDVLQJ WKH EOHQG OHYHO KLJKHU WKDQ % GRHV QRW
LPSURYH WKH OXEULFLW\ DQ\ IXUWKHU
6HDVRQDO 2SHUDWLRQ
&DW UHFRPPHQGV WKDW VHDVRQDOO\ RSHUDWHG HQJLQHV
KDYH WKH IXHO V\VWHPV LQFOXGLQJ IXHO WDQNV IOXVKHG
ZLWK FRQYHQWLRQDO GLHVHO IXHO EHIRUH SURORQJHG
VKXWGRZQ SHULRGV $SSOLFDWLRQV WKDW VKRXOG
VHDVRQDOO\ IOXVK WKH IXHO V\VWHP LQFOXGH VFKRRO EXVHV
86 DQG IDUP PDFKLQHU\
3HUIRUP WKH IROORZLQJ SURFHVV EHIRUH VKXWWLQJ GRZQ
WKH HQJLQH IRU SURORQJHG SHULRGV
2SHUDWH WKH HQJLQH XQWLO WKH IXHO OHYHO LQ WKH WDQN LV
ORZ
5HILOO WKH IXHO WDQN ZLWK KLJK TXDOLW\ FRQYHQWLRQDO
GLVWLOODWH GLHVHO IXHO
5HSHDW VWHSV DQG D PLQLPXP RI WZR WLPHV
EHIRUH WKH HQJLQH LV VKXW GRZQ IRU SURORQJHG
SHULRGV
,I GLVWLOODWH IXHO LV QRW DYDLODEOH WR RSHUDWH WKH HQJLQH
DV GHVFULEHG DERYH ZKLOH DFFHSWLQJ VRPH ULVN OLPLW
ELRGLHVHO WR D PD[LPXP RI % )ROORZ WKH
UHFRPPHQGDWLRQV SURYLGHG LQ WKLV VHFWLRQ DQG WKH
JXLGHOLQHV JLYHQ EHORZ WR UHGXFH WKH ULVN
&DUH PXVW EH WDNHQ LQ RUGHU WR UHPRYH ZDWHU IURP
IXHO WDQNV :DWHU DFFHOHUDWHV PLFURELDO
FRQWDPLQDWLRQ DQG JURZWK :KHQ ELRGLHVHO LV
FRPSDUHG WR GLVWLOODWH IXHOV ZDWHU LV QDWXUDOO\ PRUH
OLNHO\ WR H[LVW LQ WKH ELRGLHVHO
$GGLWLRQ RI &DW 'LHVHO )XHO &RQGLWLRQHU SDUW
QXPEHU RU DQ DSSURSULDWH FRPPHUFLDO
DGGLWLYH FRQWDLQLQJ DQWLR[LGDQWVR[LGDWLRQ VWDELOLW\
LPSURYHUV LV UHFRPPHQGHG SULRU WR HQJLQH
VKXWGRZQ IRU SURORQJHG SHULRGV 7KH FRQGLWLRQHU
VKRXOG EH DGGHG ZKHQ WKH HQJLQH LV IXHOHG
3UHIHUDEO\ WKH FRQGLWLRQHU LV DGGHG WR WKH IXHO DV
VRRQ DV SRVVLEOH DIWHU WKH IXHO SURGXFWLRQ
%LRGLHVHO GLOXWLRQ RI HQJLQH RLO PD\ UHVXOW LQ RLO
VLGH OHDNV GXH WR LQFRPSDWLELOLW\ RI WKH VHDOV WKDW
DUH W\SLFDOO\ XVHG RQ WKH RLO VLGH /LQHU VHDOV DQG
RLO FRROHU VHDOV PD\ EH DIIHFWHG E\ ELRGLHVHO
GLOXWLRQ 0RQLWRU WKH FRQGLWLRQ RI WKH RLO VLGH VHDOV
DQG FRQVXOW \RXU &DW GHDOHU IRU DSSURSULDWH
UHSODFHPHQW LI QHHGHG
$GGLWLRQ RI &DW 'LHVHO )XHO 6\VWHP &OHDQHU SDUW
QXPEHU RU DQ DSSURSULDWH FRPPHUFLDO
FOHDQHU LV UHFRPPHQGHG ZKHQ WKH HQJLQH LV ILUVW
RSHUDWHG DIWHU WKH SURORQJHG VKXWGRZQ SHULRG DQG
SUHIHUDEO\ IRU D WRWDO RI WZR WDQNV RI IXHO )ROORZ WKH
UHFRPPHQGDWLRQV SURYLGHG LQ WKH &DW 'LHVHO )XHO
6\VWHP &OHDQHU VHFWLRQ LQ WKH ³)XHO´ DUWLFOH LQ WKLV
6SHFLDO 3XEOLFDWLRQ
&RQVXOW \RXU &DW GHDOHU IRU WKH DYDLODELOLW\ RI &DW
'LHVHO )XHO &RQGLWLRQHU DQG &DW 'LHVHO )XHO 6\VWHP
&OHDQHU
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
%LRGLHVHO 6SHFLILFDWLRQ
%LRGLHVHO IXHO XVHG WKDW LV XVHG IRU EOHQGLQJ PXVW
PHHW WKH UHTXLUHPHQWV LQ WKH IROORZLQJ WDEOH
7KH ILQDO EOHQG RI ELRGLHVHO DV XVHG LQ WKH HQJLQH
PXVW PHHW WKH UHTXLUHPHQWV WKDW DUH VWDWHG LQ WDEOH
WKLV ³%LRGLHVHO´ DUWLFOH
% LQWHQGHG IRU EOHQGLQJ LQWR GLHVHO IXHO WKDW LV
H[SHFWHG WR JLYH VDWLVIDFWRU\ YHKLFOH SHUIRUPDQFH DW
IXHO WHPSHUDWXUHV DW RU EHORZ í & ) VKDOO
FRPSO\ ZLWK D FROG VRDN ILOWHUDELOLW\ OLPLW RI VHFRQGV PD[LPXP 3DVVLQJ WKH ³$670 '´ VHFRQGV &ROG 6RDN )LOWHUDELOLW\ WHVW OLPLW GRHV QRW
JXDUDQWHH FROG SHUIRUPDQFH IRU DOO ELRGLHVHO EOHQGV DW
DOO SRVVLEOH IXHO WHPSHUDWXUHV EXW ELRGLHVHO WKDW IDLOV
WKLV &ROG 6RDN )LOWHUDELOLW\ WHVW UHTXLUHPHQW ZLOO
SURGXFH ELRGLHVHO EOHQGV WKDW ZLOO OLNHO\ SOXJ IXHO
ILOWHUV ZKHQ IXHO WHPSHUDWXUHV DUH EHORZ í &
) 7DEOH &DW 6SHFLILFDWLRQ IRU %LRGLHVHO )XHO
3URSHUW\
'HQVLW\ DW &
7HVW 0HWKRG
7HVW 0HWKRG
8QLWV
/LPLWV
8QLWHG 6WDWHV
,QWHUQDWLRQDO
6SHFLILF 3URSHU
WLHV RI )XHO
³$670 '´
³,62 ´
JFP
9LVFRVLW\ DW &
³$670 '´
³,62 ´
PP V F6W
)ODVK 3RLQW
³$670 '´
³,62 ´
&
PLQLPXP
3RXU 3RLQW
6XPPHU
:LQWHU
³$670 '´
³,62 ´
&
& ) PLQL
PXP EHORZ DPEL
HQW WHPSHUDWXUH
&ORXG 3RLQW
³$670 '´
&
5HSRUW
6XOIXU &RQWHQW
³$670 '´
'LVWLOODWLRQ
SHUFHQW (YDSRUDWLRQ
SHUFHQW (YDSRUDWLRQ
³$670 '´
³,62 ´
³,62 ´
SHUFHQW ZHLJKW
PD[LPXP
&
7R %H 'HWHUPLQHG
SHUFHQW ZHLJKW
PD[LPXP
&DUERQ 5HVLGXH &RQUDGVRQ &&5
³$670 '´
³,62 ´
&HWDQH 1XPEHU
³$670 '´
³,62 ´
6XOIDWHG $VK
³$670 '´
³,62 ´
SHUFHQW ZHLJKW
PD[LPXP
:DWHU6HGLPHQW &RQWHQW
³$670 '´
³,62 ´
SHUFHQW YROXPH
PD[LPXP
&RSSHU &RUURVLRQ
³$670 '´
³,62 ´
2[LGDWLRQ 6WDELOLW\
³(1 ´
³(1 ´
KRXUV
PLQLPXP
(VWHULILFDWLRQ
³(1 ´
³(1 ´
SHUFHQW YROXPH
PLQLPXP
$FLG 9DOXH
³$670 '´
³(1 ´
PJ .2+J
PD[LPXP
0HWKDQRO &RQWHQW
³(1 ´
³(1 ´
SHUFHQW ZHLJKW
PD[LPXP
0RQRJO\FHULGHV
³$670 '´
³(1 ´
SHUFHQW ZHLJKW
PD[LPXP
PLQLPXP
1R FRQWLQXHG
6(%8
)XHO 6SHFLILFDWLRQV
&UXGH )XHO 2LO
7DEOH FRQWG
&DW 6SHFLILFDWLRQ IRU %LRGLHVHO )XHO
3URSHUW\
7HVW 0HWKRG
'LJO\FHULGHV
7ULJO\FHULGHV
7HVW 0HWKRG
8QLWV
8QLWHG 6WDWHV
,QWHUQDWLRQDO
6SHFLILF 3URSHU
WLHV RI )XHO
³$670 '´
³(1 ´
SHUFHQW ZHLJKW
PD[LPXP
³(1 ´
SHUFHQW ZHLJKW
PD[LPXP
PD[LPXP
³$670 '´
/LPLWV
)UHH *O\FHULQ
³$670 '´
³(1 ´
SHUFHQW ZHLJKW
7RWDO *O\FHULQ
³$670 '´
³(1 ´
SHUFHQW ZHLJKW
PD[LPXP
3KRVSKRUXV &RQWHQW
³$670 '´
³(1 ´
SHUFHQW ZHLJKW
&DOFLXP DQG 0DJQHVLXP FRPELQHG
³(1 ´
³(1 ´
SSP
PD[LPXP
PD[LPXP
6RGLXP DQG 3RWDVVLXP FRPELQHG
³(1 ´
³(1 ´
SSP
&ROG 6RDN )LOWHUDELOLW\
³$670 '´
±
VHFRQGV
PD[LPXP
&OHDQOLQHVV
³$670 '´
³,62 ´
±
5HFRPPHQGHG FOHDQOLQHVV OHYHO IRU IXHO DV GLVSHQVHG LQWR PDFKLQH RU HQJLQH IXHO WDQN LV ³,62 ´ RU FOHDQHU SHU ³,62 ´ RU ³$670
'´ 5HIHU WR WKH ³&RQWDPLQDWLRQ &RQWURO´ VHFWLRQ LQ WKLV 6SHFLDO 3XEOLFDWLRQ
1RWH )XHOV WKDW PHHW WKH PRVW FXUUHQW UHYLVLRQ OHYHO
RI ³$670 '´ RU ³(1 ´ PD\ EH XVHG IRU
EOHQGLQJ ZLWK DQ DFFHSWDEOH GLVWLOODWH IXHO 7KH
FRQGLWLRQV UHFRPPHQGDWLRQV DQG OLPLWV WKDW DUH
QRWHG LQ WKLV %LRGLHVHO VHFWLRQ DSSO\
5HIHUHQFHG 'RFXPHQWV
5HIHU WR WKH ³5HIHUHQFH 0DWHULDO )XHO´ VHFWLRQ RI WKLV
6SHFLDO 3XEOLFDWLRQ IRU WKH UHIHUHQFH PDWHULDO IRU WKH
LQIRUPDWLRQ LQ WKLV VHFWLRQ
7DEOH FRQWG
&UXGH 2LO 6SHFLILFDWLRQ IRU &DW DQG & 6HULHV
'LHVHO (QJLQHV
6SHFLILFDWLRQV 5HTXLUHPHQWV
&DUERQ UHVLGXH RQ PD[LPXP
ZHLJKW
ERWWRPV
6SHFLILFDWLRQV 5HTXLUHPHQWV
$670
7HVW
,62 7HVW
$URPDWLFV
PD[LPXP
³'´
³,62 ´
$VK
PD[LPXP
ZHLJKW
³'´
³,62 ´
FRQWLQXHG
³,62 ´
³'´
RU
³'´
³,62 ´
&ORXG SRLQW
7KH PD[LPXP
FORXG SRLQW PXVW
QRW H[FHHG WKH
ORZHVW H[SHFWHG
DPELHQW
WHPSHUDWXUH
&RSSHU VWULS
FRUURVLRQ
1R PD[LPXP
³'´
³,62 ´
³'´
³,62 ´
³'´
³,62 ´
DW &
) PD[LPXP
7DEOH &UXGH 2LO 6SHFLILFDWLRQ IRU &DW DQG & 6HULHV
'LHVHO (QJLQHV
³'´
PLQLPXP 60&6 &RGH &DW 6HULHV GLHVHO HQJLQHV DQG & 6HULHV
GLHVHO HQJLQHV FDQ RSHUDWH ZLWK FUXGH RLO DV IXHO
7DEOH OLVWV WKH UHTXLUHPHQWV IRU FUXGH RLO WKDW LV
DFFHSWDEOH IRU XVH LQ VWDQGDUG DQG & GLHVHO
HQJLQHV 'R QRW XVH FUXGH IXHO RLO LQ HQJLQHV WKDW DUH
7LHU (3$ FHUWLILHG
,62 7HVW
&HWDQH QXPEHU
L
&UXGH )XHO 2LO
$670
7HVW
DW &
) PD[LPXP
'LVWLOODWLRQ
PLQLPXP RI FUDFNLQJ
PD[LPXP
UHVLGXH
5HLG 9DSRU
SUHVVXUH
N3D SVL
PD[LPXP
FRQWLQXHG
6(%8
)XHO 6SHFLILFDWLRQV
&UXGH )XHO 2LO
7DEOH FRQWG
&UXGH 2LO 6SHFLILFDWLRQ IRU &DW DQG & 6HULHV
'LHVHO (QJLQHV
6SHFLILFDWLRQV 5HTXLUHPHQWV
$670
7HVW
,62 7HVW
³'´
6DOW
NJ SHU N/
OE SHU EEO PD[LPXP
)ODVK SRLQW
OHJDO OLPLW
³'´
³,62 ´
$3, JUDYLW\
PLQLPXP
PD[LPXP
³'´
6SHFLILF JUDYLW\ PLQLPXP
PD[LPXP
/LJKWHU IUDFWLRQV PD[LPXP
)UDFWLRQ RI NHUR
VHQH DQG GLVWLOODWH PLQLPXP
³'´
³,62 ´
³'´
RU
³'´
³,62
´
RU
³,62
´
3RXU SRLQW
6XOIXU
9LVFRVLW\
& ) PLQL
PXP EHORZ DPEL
HQW WHPSHUDWXUH
F6W PLQLPXP
DQG F6W PD[L
PXP DV GHOLYHUHG
WR WKH IXHO LQMHFWLRQ
SXPSV
:DWHU DQG
VHGLPHQW
PD[LPXP
YROXPH
³'´
³,62 ´
9DQDGLXP
SSP PD[LPXP
³'´
6RGLXP
SSP PD[LPXP
³'´
1LFNHO
SSP PD[LPXP
³'´
$OXPLQXP
SSP PD[LPXP
³'´
6LOLFRQ
SSP PD[LPXP
³'´
PJ SHU P/
JUDLQV86 JDO
PD[LPXP
³'´
³,62 ´
PP
LQFK PD[
LPXP DW &
)
³'´
*XPV DQG UHVLQV
/XEULFLW\ $ IXHO ZLWK D KLJKHU FHWDQH QXPEHU PD\ EH UHTXLUHG IRU RSHUD
WLRQ DW D KLJKHU DOWLWXGH RU LQ FROG ZHDWKHU
FRQWLQXHG
7DEOH FRQWG
7KH VSHFLILF JUDYLW\ OLPLWV DUH GHWHUPLQHG E\ WKH VWDQGDUGV WD
EOHV XVLQJ WKH ³$670 '´ WHVW PHWKRG WHPSHUDWXUH RI
& ) $OVR E\ WKH VWDQGDUGV WDEOHV WKH HTXLYDOHQW
NJP NLORJUDPV SHU FXELF PHWHU XVLQJ WKH ³$670 '´ WHVW
PHWKRG WHPSHUDWXUH RI & ) IRU WKH PLQLPXP JUDYLW\
RI LV NJP DQG IRU WKH PD[LPXP $3, JUDYLW\ RI LV
NJP
)UDFWLRQV WKDW DUH ERLOHG RII DW WHPSHUDWXUHV EHORZ &
)
)UDFWLRQV WKDW DUH ERLOHG RII DW WHPSHUDWXUHV EHWZHHQ &
) DQG WKH FUDFNLQJ SRLQW
6XOIXU LQ WKH IXHO VKRXOG EH SHU WKH ,QWHUQDWLRQDO 0DULWLPH 2UJDQ
L]DWLRQ ,02 UHJXODWLRQV RU DV VSHFLILHG E\ WKH DSSOLFDEOH MXULV
GLFWLRQ 5HIHU WR WKH VSHFLILF HQJLQH2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO WR GHWHUPLQH WKH PD[LPXP OHYHO RI VXOIXU SHUPLVVLEOH
ZKHUH DOORZHG E\ WKH DSSOLFDEOH MXULVGLFWLRQ )XHO VXOIXU OHYHOV
DIIHFW H[KDXVW HPLVVLRQV +LJK VXOIXU IXHOV LQFUHDVH WKH SRWHQWLDO
IRU FRUURVLRQ RI LQWHUQDO FRPSRQHQWV )XHO VXOIXU OHYHOV DERYH
PD\ VLJQLILFDQWO\ VKRUWHQ WKH RLO FKDQJH LQWHUYDO &DWHUSLOODU
VWURQJO\ UHFRPPHQGV WKDW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV XVHG
WR GHWHUPLQH RLO FKDQJH LQWHUYDOV ZKHQ WKH IXHO VXOIXU OHYHOV DUH
DERYH )RU DGGLWLRQDO LQIRUPDWLRQ VHH WKLV 6SHFLDO 3XEOLFD
WLRQ (QJLQH 2LO DQG 6SHFLDO 3XEOLFDWLRQ 6R2R6 6HUYLFHV 2LO
$QDO\VLV WRSLF :KHQ WKH VXOIXU OHYHOV DUH DERYH FRQVXOW
\RXU &DW GHDOHU IRU JXLGDQFH
7KH YDOXHV RI WKH IXHO YLVFRVLW\ DUH WKH YDOXHV DV WKH IXHO LV GH
OLYHUHG WR WKH IXHO LQMHFWLRQ SXPSV )RU HDVH RI FRPSDULVRQ
IXHOV VKRXOG DOVR PHHW WKH PLQLPXP DQG PD[LPXP YLVFRVLW\ UH
TXLUHPHQWV DW & ) WKDW DUH VWDWHG E\ WKH XVH RI HL
WKHU WKH ³$670 '´ WHVW PHWKRG RU WKH ³,62 ´ WHVW
PHWKRG ,I D IXHO ZLWK D ORZ YLVFRVLW\ LV XVHG FRROLQJ RI WKH IXHO
PD\ EH UHTXLUHG LQ RUGHU WR PDLQWDLQ D F6W RU JUHDWHU YLVFRV
LW\ DW WKH IXHO LQMHFWLRQ SXPS )XHOV ZLWK D KLJK YLVFRVLW\ PLJKW
UHTXLUH IXHO KHDWHUV LQ RUGHU WR ORZHU WKH YLVFRVLW\ WR F6W RU
OHVV DW WKH IXHO LQMHFWLRQ SXPSV
)ROORZ WKH WHVW FRQGLWLRQV DQG SURFHGXUHV IRU JDVROLQH PRWRU 7KH OXEULFLW\ RI D IXHO LV QRW W\SLFDOO\ D FRQFHUQ ZLWK FUXGH RLO
IXHO /XEULFLW\ LV D FRQFHUQ ZLWK FHUWDLQ IXHOV LQFOXGLQJ ORZ DQG
XOWUD ORZ VXOIXU GLHVHO 8/6' IXHO -HW $ -HW $ -3 -3
DQG RWKHU OLJKWHU IXHOV
127,&(
2SHUDWLQJ ZLWK IXHOV WKDW GR QRW PHHW &DWHUSLOODU V UHF
RPPHQGDWLRQV FDQ FDXVH WKH IROORZLQJ HIIHFWV VWDUW
LQJ GLIILFXOW\ SRRU FRPEXVWLRQ GHSRVLWV LQ WKH IXHO
LQMHFWRUV UHGXFHG VHUYLFH OLIH RI WKH IXHO V\VWHP GH
SRVLWV LQ WKH FRPEXVWLRQ FKDPEHU DQG UHGXFHG VHUY
LFH OLIH RI WKH HQJLQH
127,&(
&ROGVRDNHG VWDUWV RFFXU ZKHQ WKH HQJLQH KDV QRW
EHHQ RSHUDWHG IRU D WLPH DOORZLQJ WKH FUDQNFDVH RLO
DQG WKH IXHO WR EHFRPH PRUH YLVFRXV GXH WR FRROHU
DPELHQW WHPSHUDWXUHV &RQVXOW WKH IDFWRU\ LI WKH YLV
FRVLW\ RI WKH FROGVRDNHG IXHO LQ WKH IXHO V\VWHP ZLOO
EH DERYH F6W
,I D SDUWLFXODU FUXGH RLO H[FHHGV WKH OLPLWV WKDW DUH
OLVWHG LQ 7DEOH 6HULHVGLHVHO HQJLQHV WKDW DUH
FRQILJXUHG WR XVH KHDY\ IXHO RLO PD\ EH XWLOL]HG
&RQVXOW \RXU &DW GHDOHU RU &XVWRPHU 6HUYLFH IRU
LQIRUPDWLRQ DERXW IXHO WKDW H[FHHGV WKH OLPLWV WKDW DUH
OLVWHG LQ 7DEOH 6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
1RWH 7KH &UXGH 2LO 6SHFLILFDWLRQ IRU &DW DQG
& 6HULHV 'LHVHO (QJLQHV LV DSSOLFDEOH WR 6HULHV 'LHVHO (QJLQHV &RQVXOW \RXU &DW GHDOHU IRU
JXLGDQFH
127,&(
8VH RI SHUPLVVLEOH IXHOV VXFK DV VRPH FUXGH RLOV
VRPH EOHQGV RI FUXGH RLO ZLWK GLVWLOODWH IXHO VRPH ELR
GLHVHO DQG VRPH PDULQH GLHVHO IXHO FDQ UHVXOW LQ
KLJKHU PDLQWHQDQFH FRVWV DQG UHGXFHG HQJLQH OLIH
L
+HDY\ )XHO 2LO
60&6 &RGH 5HFRPPHQGDWLRQV IRU +HDY\ )XHO
2LO
&DW 6HULHV HQJLQHV FDQ EXUQ D ZLGH UDQJH RI
KHDY\ IXHO RLOV 7KH 6HULHV HQJLQHV WKDW DUH
FRQILJXUHG IRU XVLQJ KHDY\ IXHO RLO KDYH D VSHFLDO IXHO
V\VWHP 7KH HQJLQHV DOVR KDYH VSHFLDO FRPSRQHQWV
IRU WKH FRPEXVWLRQ FKDPEHU 7KHVH IHDWXUHV KHOS WR
UHVLVW WKH FRUURVLYH HOHPHQWV WKDW DUH IRXQG LQ KHDY\
IXHO RLO %HFDXVH RI WKRVH VSHFLDO IHDWXUHV '2 127
XVH KHDY\ IXHO RLO LQ 6HULHV HQJLQHV WKDW DUH
FRQILJXUHG WR XVH GLVWLOODWH IXHO '2 127 XVH KHDY\
IXHO RLO LQ & 6HULHV GLHVHO HQJLQHV
127,&(
+HDY\ IXHO RLO UHVLGXDO IXHO RU EOHQGHG IXHO FDQ EH
XVHG LQ &DWHUSLOODU 6HULHV GLHVHO HQJLQHV WKDW
DUH FRQILJXUHG WR XVH KHDY\ IXHO RLO
'2 127 XVH WKHVH W\SHV RI IXHO LQ 6HULHV GLHVHO
HQJLQHV WKDW DUH FRQILJXUHG WR XVH GLVWLOODWH GLHVHO
IXHO '2 127 XVH KHDY\ IXHO RLO LQ & 6HULHV GLHVHO
HQJLQHV )DLOXUH WR IROORZ WKLV UHFRPPHQGDWLRQ ZLOO UH
VXOW LQ VHYHUH ZHDU RI FRPSRQHQWV DQG HQJLQH IDLOXUH
'R QRW XVH WKHVH W\SHV RI IXHO LQ HQJLQHV WKDW DUH 7LHU
(3$ FHUWLILHG
6HULHV HQJLQHV WKDW DUH SURSHUO\ FRQILJXUHG FDQ
RSHUDWH RQ IXHO ZKLFK LV ZLWKLQ WKH VSHFLILFDWLRQV WKDW
DUH OLVWHG LQ 7DEOHV DQG 7DEOH OLVWV
UHFRPPHQGHG VSHFLILFDWLRQV IRU KHDY\ IXHO RLO WKDW
ZLOO KHOS WR SURYLGH PD[LPXP VHUYLFH OLIH DQG
SHUIRUPDQFH 7DEOH OLVWV WKH PD[LPXP EXQNHUHG
IXHO OLPLWV ,I WKH IXHO H[FHHGV WKH OLPLWV WKDW DUH OLVWHG
LQ WKH 7DEOHV &DW UHFRPPHQGV GLOXWLQJ WKH KHDY\ IXHO
RLO ZLWK D GLVWLOODWH GLHVHO IXHO
127,&(
&ROGVRDNHG VWDUWV RFFXU ZKHQ WKH HQJLQH KDV QRW
EHHQ RSHUDWHG IRU D WLPH DOORZLQJ WKH FUDQNFDVH RLO
DQG WKH IXHO WR EHFRPH PRUH YLVFRXV GXH WR FRROHU
DPELHQW WHPSHUDWXUHV &RQVXOW WKH IDFWRU\ LI WKH YLV
FRVLW\ RI WKH FROGVRDNHG IXHO LQ WKH IXHO V\VWHP ZLOO
EH DERYH F6W
1RWH $OO IXHO JUDGHV OLVWHG LQ 7DEOHV DQG UHTXLUH DSSURSULDWH IXHO WUHDWPHQW SULRU WR GHOLYHU\ WR
WKH LQMHFWRU )RU LQIRUPDWLRQ RQ IXHO WUHDWPHQW VHH
³&,0$& %DFNJURXQG 'HVLJQ DQG 2SHUDWLRQ RI +HDY\
)XHO 7UHDWPHQW 3ODQWV IRU 'LHVHO (QJLQHV´
1RWH )RU PRUH LQIRUPDWLRQ RQ RSHUDWLQJ D 6HULHVHQJLQH ZLWK KHDY\ IXHO RLO VHH 6SHFLDO
,QVWUXFWLRQ 5(+6 ³*XLGHOLQHV IRU +HDY\
)XHO 2LO +)2 (QJLQHV´
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
7DEOH $FFHSWDEOH ³,62 50* DQG ´ DQG ³&,0$& * ´ 6SHFLILFDWLRQV IRU +HDY\ )XHO 2LO
)RU 8VH ,Q &DW 6HULHV(QJLQHV 7KDW $UH &RQILJXUHG 7R 8VH +HDY\ )XHO 2LO
&KDUDFWHULVWLF
$670 7HVW
,62 6SHFLILFDWLRQ
%XQNHUHG )XHO
³,62 50* DQG
´ DQG ³&,0$& * ´
)XHO WKDW LV 'HOLYHUHG WR
WKH 8QLW ,QMHFWRUV
.LQHPDWLF 9LVFRVLW\
³'´
³´
F6W DW & )
PD[LPXP
WR F6W DW &
) PD[LPXP 'HQVLW\
³'´
)ODVK SRLQW
³'´
³´
& ) PLQLPXP
3RXU SRLQW
³'´
³´
& )
&DUERQ UHVLGXH
³´
PD[LPXP ZHLJKW
&DOFXODWHG &DUERQ $URPD
WLFLW\ ,QGH[ &&$, PD[LPXP
³´
NJP PD[LPXP DW & )
³´
PJ SHU NJ PD[LPXP
+\GURJHQ 6XOILGH +6
$FLG 1XPEHU
³'´
$VK
³'´
³´
7RWDO VHGLPHQW DIWHU VHWWOLQJ
³´
:DWHU
³'´
³´
6XOIHU
³'´ RU ³'´
³´
9DQDGLXP ³'´
³´
6RGLXP
³'´
5DWLR RI 9DQGLXP RYHU 6R
GLXP 9D1D ³´
PJ .2+J PD[
PD[LPXP PDVV
PD[LPXP PDVV
PD[LPXP PDVV
PD[LPXP PDVV
PD[LPXP PDVV
SSP PD[LPXP
PJNJ PJNJ PD[LPXP
ILYH PLQLPXP
PJNJ PD[LPXP
&DOFLXP
³'´
3KRVSKRURXV
³'´
=LQF
³'´
$OXPLQXP DQG VLOLFRQ
³'´
³´
$VSKDOWHQHV
³'´
PD[ PDVV
:DWHU DQG 6HGLPHQW
³'´
³´
PD[ PDVV
PJNJ PD[LPXP
PJNJ PD[LPXP
PJNJ PJNJ PD[LPXP
7KH WHPSHUDWXUH RI WKH IXHO DW WKH IXHO LQOHW WR WKH HQJLQH PXVW QRW H[FHHG & ) 7KLV OLPLW LV 21/< IRU HQJLQHV WKDW KDYH D VXLWDEOH V\VWHP IRU WUHDWPHQW RI WKH IXHO
)RU DSSOLFDWLRQV ZLWK ORDGV WKDW DUH OHVV WKDQ SHUFHQW RI WKH UDWHG RXWSXW N: DQG IRU DSSOLFDWLRQV ZLWK ORDG F\FOLQJ WKH &&$, OLPLW LV 6XOIXU LQ WKH IXHO VKRXOG EH SHU WKH ,QWHUQDWLRQDO 0DULWLPH 2UJDQL]DWLRQ ,02 UHJXODWLRQV RU DV VSHFLILHG E\ WKH DSSOLFDEOH MXULVGLFWLRQ 5HIHU WR
WKH VSHFLILF HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO WR GHWHUPLQH WKH PD[LPXP OHYHO RI VXOIXU SHUPLVVLEOH ZKHUH DOORZHG E\ WKH DSSOLFDEOH
MXULVGLFWLRQ )XHO VXOIXU OHYHOV DIIHFW H[KDXVW HPLVVLRQV +LJK VXOIXU IXHOV LQFUHDVH WKH SRWHQWLDO IRU FRUURVLRQ RI LQWHUQDO FRPSRQHQWV )XHO VXOIXU
OHYHOV DERYH PD\ VLJQLILFDQWO\ VKRUWHQ WKH RLO FKDQJH LQWHUYDO &DWHUSLOODU VWURQJO\ UHFRPPHQGV WKDW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV XVHG WR
GHWHUPLQH RLO FKDQJH LQWHUYDOV ZKHQ WKH IXHO VXOIXU OHYHOV DUH DERYH )RU DGGLWLRQDO LQIRUPDWLRQ VHH WKLV 6SHFLDO 3XEOLFDWLRQ (QJLQH 2LO
DQG 6SHFLDO 3XEOLFDWLRQ 6R2R6 6HUYLFHV 2LO $QDO\VLV :KHQ WKH VXOIXU OHYHOV DUH DERYH FRQVXOW \RXU &DW GHDOHU IRU JXLGDQFH
&RPSRXQGV RI YDQDGLXP DQG VRGLXP DUH FRUURVLYH DW KLJK WHPSHUDWXUHV 6HH WKH 9DQDGLXP DQG 6RGLXP WRSLF &RQVXOW WKH IDFWRU\ DERXW IXHO
WKDW KDV PRUH WKDQ SSP RI YDQDGLXP $OVR FRQVXOW WKH IDFWRU\ DERXW IXHO WKDW KDV PRUH WKDQ SSP RI VRGLXP &RQVXOW WKH IDFWRU\ LQ RUGHU
WR HQVXUH WKDW WKH V\VWHP IRU WUHDWPHQW RI WKH IXHO DQG WKH HQJLQH DUH HTXLSSHG SURSHUO\ IRU WKH IXHO
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
7DEOH 0D[LPXP /LPLWV IRU )XHO 6SHFLILFDWLRQV DV %XQNHUHG +HDY\ )XHO 2LO IRU &DW 6HULHV(QJLQHV 7KDW $UH &RQILJXUHG 7R 8VH +HDY\ )XHO 2LO
&KDUDFWHULVWLF
$670 7HVW
,62 6SHFLILFDWLRQ
%XQNHUHG
³,62 50. ´
.LQHPDWLF YLVFRVLW\
³'´
³´
F6W DW & ) PD[LPXP
'HQVLW\
³'´
³´
NJP OEIW PD[LPXP
³´
)ODVK SRLQW
³'´
³´
& ) PLQLPXP
3RXU SRLQW
³'´
³´
& )
³´
PD[LPXP ZHLJKW
³'´
³´
PD[LPXP ZHLJKW
³´
PD[LPXP ZHLJKW
:DWHU
³'´
³´
PD[LPXP YROXPH
6XOIXU ³'´
RU
³'´
³´
PD[LPXP PDVV
³'´
³´
SSP PD[LPXP
³'´
³´
&DOFLXP
³'´
3KRVSKRURXV
³'´
=LQF
³'´
&DUERQ UHVLGXH
$VK
7RWDO VHGLPHQW DIWHU VHWWOLQJ
9DQDGLXP
$OXPLQXP DQG VLOLFRQ
PJ PD[LPXP SHU NJ
PJNJ PD[LPXP
PJNJ PD[LPXP
PJNJ PD[LPXP
%XQNHUHG IXHOV ZLWK KLJKHU YLVFRVLW\ WKDQ WKH DFFHSWDEOH IXHOV OLVWHG LQ 7DEOH XS WR ³7KH ,QWHUQDWLRQDO &RXQFLO 2Q &RPEXVWLRQ (QJLQHV &,
0$& .´ RU ³,QWHUQDWLRQDO 6WDQGDUG 2UJDQL]DWLRQ ,62 50. ´ OLPLWV ZLOO EH FRQVLGHUHG DQG UHYLHZHG E\ WKH IDFWRU\ 7KH WHPSHUD
WXUH OLPLW IRU WKH IXHO WR WKH HQJLQH PD\ DIIHFW WKH DOORZDEOH EXQNHUHG IXHO YLVFRVLW\ WKDW LV VWDWHG LQ WKLV WDEOH
7KLV OLPLW LV 21/< IRU HQJLQHV WKDW KDYH D VXLWDEOH V\VWHP IRU WUHDWPHQW RI WKH IXHO
6XOIXU LQ WKH IXHO VKRXOG EH SHU WKH ,QWHUQDWLRQDO 0DULWLPH 2UJDQL]DWLRQ ,02 UHJXODWLRQV RU DV VSHFLILHG E\ WKH DSSOLFDEOH MXULVGLFWLRQ 5HIHU WR
WKH VSHFLILF HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO WR GHWHUPLQH WKH PD[LPXP OHYHO RI VXOIXU SHUPLVVLEOH ZKHUH DOORZHG E\ WKH DSSOLFDEOH
MXULVGLFWLRQ )XHO VXOIXU OHYHOV DIIHFW H[KDXVW HPLVVLRQV +LJK VXOIXU IXHOV LQFUHDVH WKH SRWHQWLDO IRU FRUURVLRQ RI LQWHUQDO FRPSRQHQWV )XHO VXOIXU
OHYHOV DERYH PD\ VLJQLILFDQWO\ VKRUWHQ WKH RLO FKDQJH LQWHUYDO &DWHUSLOODU VWURQJO\ UHFRPPHQGV WKDW 6ā2ā6 6HUYLFHV RLO DQDO\VLV LV XVHG WR
GHWHUPLQH RLO FKDQJH LQWHUYDOV ZKHQ WKH IXHO VXOIXU OHYHOV DUH DERYH )RU DGGLWLRQDO LQIRUPDWLRQ VHH WKLV 6SHFLDO 3XEOLFDWLRQ (QJLQH 2LO
DQG 6SHFLDO 3XEOLFDWLRQ 6R2R6 6HUYLFHV 2LO $QDO\VLV :KHQ WKH VXOIXU OHYHOV DUH DERYH FRQVXOW \RXU &DW GHDOHU IRU JXLGDQFH
&RPSRXQGV RI YDQDGLXP DQG VRGLXP DUH FRUURVLYH DW KLJK WHPSHUDWXUHV 6HH WKH ³9DQDGLXP DQG 6RGLXP´ WRSLF &RQVXOW WKH IDFWRU\ DERXW IXHO
WKDW KDV PRUH WKDQ SSP RI YDQDGLXP $OVR FRQVXOW WKH IDFWRU\ DERXW IXHO WKDW KDV PRUH WKDQ SSP RI VRGLXP &RQVXOW WKH IDFWRU\ LQ RUGHU
WR HQVXUH WKDW WKH V\VWHP IRU WUHDWPHQW RI WKH IXHO DQG WKH HQJLQH DUH HTXLSSHG SURSHUO\ IRU WKH IXHO
127,&(
7KH YLVFRVLW\ RI WKH IXHO DW WKH HQJLQH PXVW EH EH
WZHHQ F6W DQG F6W 7KH WHPSHUDWXUH RI WKH IXHO
DW WKH HQJLQH PXVW QRW H[FHHG & ) 9DQDGLXP DQG 6RGLXP
&RPSRXQGV RI YDQDGLXP DQG VRGLXP DUH FRUURVLYH DW
KLJK WHPSHUDWXUHV 7KH OLPLWV WKDW DUH OLVWHG LQ 7DEOHV
DQG DUH 21/< IRU HQJLQHV WKDW KDYH WKH
SURSHU FRPSRQHQWV DQG HTXLSPHQW IRU WUHDWPHQW RI
WKH IXHO
,I D IXHO DQDO\VLV UHYHDOV WKDW WKH IXHO KDV PRUH WKDQ
SSP RI YDQDGLXP DQGRU SSP RI VRGLXP WKH
FXVWRPHU LV HQFRXUDJHG WR FRQVXOW WKH &DW (QJLQH
IDFWRU\ $QDO\VLV FDQ HQVXUH WKDW WKH HQJLQH KDV WKH
SURSHU FRQILJXUDWLRQ DQG HTXLSPHQW IRU WKH IXHO
,Q DGGLWLRQ WR WKH OLPLWV RQ YDQDGLXP DQG VRGLXP LQ
SSP OLPLWV DUH HVWDEOLVKHG IRU WKH FRPSDUDWLYH
FRQFHQWUDWLRQV RI WKHVH HOHPHQWV &RPSRXQGV RI
YDQDGLXP DQG VRGLXP DUH HVSHFLDOO\ FRUURVLYH ZKHQ
WKH FRQFHQWUDWLRQ RI VRGLXP LV PRUH WKDQ SHUFHQW
RI WKH FRQFHQWUDWLRQ RI YDQDGLXP 7DEOH VKRZV
H[DPSOHV IRU FDOFXODWLQJ WKH SHUFHQWDJH RI VRGLXP WR
YDQDGLXP
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
6WRULQJ RI WKH IXHO
7DEOH ([DPSOHV IRU &DOFXODWLQJ WKH 3HUFHQWDJH RI 6RGLXP 1D WR
9DQDGLXP 9
+HDWLQJ RI WKH IXHO
SSP 1D
SSP 9
î
î
SSP 1D
SSP 9
&HQWULIXJLQJ RI WKH IXHO
7DEOH ([DPSOHV IRU &DOFXODWLQJ WKH 5DWLR RI 9DQDGLXP 9 WR 6RGLXP
1D
SSP 9
SSP 1D
SSP 9
SSP 1D
7KH UHVXOW RI WKH FDOFXODWLRQ LV PRUH WKDQ ILYH 7KLV UDWLR LV
DFFHSWDEOH
7KH UHVXOW RI WKH FDOFXODWLRQ LV OHVV WKDQ ILYH 7KLV UDWLR LV 127
DFFHSWDEOH
1RWH 9DQDGLXP OHYHOV RYHU SSP ZLOO UHTXLUH D
UHTXHVW IRU D VSHFLDO UDWLQJ $ UDWLR RI YDQDGLXP WR
VRGLXP WKDW LV OHVV WKDQ ILYH ZLOO DOVR UHTXLUH D UHTXHVW
IRU D VSHFLDO UDWLQJ
7UHDWPHQW RI +HDY\ )XHO 2LO +)2
1RWH :KHQ +)2 ZLOO EH XVHG DOVR UHIHU WR 6SHFLDO
,QVWUXFWLRQ 5(+6 ³*XLGHOLQHV IRU +HDY\
)XHO 2LO +)2 (QJLQHV´
2SHUDWLRQ RI D 6HULHV(QJLQH ZLWK KHDY\ IXHO RLO
UHTXLUHV DWWHQWLRQ WR PDLQWHQDQFH LQWHUYDOV DQG
LQVSHFWLRQV 7UDLQHG SHUVRQQHO DUH UHTXLUHG IRU WKH
WUHDWPHQW RI WKH IXHO DQG PDLQWHQDQFH RI WKH
HTXLSPHQW
7KH XVH RI KHDY\ IXHO RLO FDQ LQYROYH WKHVH
SURFHGXUHV
&HQWULIXJLQJ RI WKH OXEH RLO
&RROLQJ RI WKH IXHO LQMHFWRU WLSV
7KH FRQFHQWUDWLRQ RI VRGLXP LV OHVV WKDQ SHUFHQW RI WKH YDQD
GLXP 7KLV LV DQ DFFHSWDEOH SHUFHQWDJH
7KH FRQFHQWUDWLRQ RI VRGLXP LV PRUH WKDQ SHUFHQW RI WKH YD
QDGLXP 7KLV SHUFHQWDJH LV 127 DFFHSWDEOH
7KH FRQFHQWUDWLRQ RI YDQDGLXP DQG VRGLXP FDQ DOVR
EH H[SUHVVHG DV D UDWLR $ UDWLR RI YDQDGLXP WR
VRGLXP WKDW LV ILYH RU PRUH LV DFFHSWDEOH 7DEOH VKRZV H[DPSOHV IRU FDOFXODWLQJ WKH UDWLR RI YDQDGLXP
WR VRGLXP
)LOWHULQJ RI WKH IXHO
$GGLWLRQDOO\ WKH HQJLQH LV PRGLILHG IRU WKH XVH RI
KHDY\ IXHO RLO ([WUD HQJLQH PDLQWHQDQFH LV UHTXLUHG
)RU LQIRUPDWLRQ RQ WKH V\VWHPV IRU WUHDWPHQW DQG
VWRUDJH RI KHDY\ IXHO RLO VHH WKH 6SHFLDO
,QVWUXFWLRQ 5(+6 ³*XLGHOLQHV )RU +HDY\ )XHO 2LO +)2 (QJLQHV´
&HQWULIXJLQJ RI WKH )XHO
)XHO IURP WKH VHWWOLQJ WDQN PXVW EH FHQWULIXJHG
FRQWLQXRXVO\ IRU SURSHU WUHDWPHQW &RQWLQXRXV
FHQWULIXJLQJ RI WKH IXHO SURYLGHV WKHVH EHQHILWV
7KH IXHO LV PDLQWDLQHG DW D FRQVWDQW OHYHO LQ WKH
GD\ WDQN
7KH IRDPLQJ RI IXHO LQ WKH GD\ WDQN LV PLQLPL]HG
$LU DQG YDSRU WKDW LV FRQWDLQHG LQ WKH UHWXUQ IXHO
KDV D FRQVWDQW GLVWDQFH IRU VHSDUDWLQJ IURP WKH
IXHO
7KH FOHDQHVW IXHO IURP WKH WRS RI WKH GD\ WDQN IORZV
WR WKH IXHO FRQGLWLRQLQJ PRGXOH DQG WKH HQJLQH
:DUP IXHO LV FRQWLQXRXVO\ VXSSOLHG WR WKH GD\ WDQN
UHGXFLQJ WKH QHHG WR KHDW WKH IXHO 7KH FRQYHFWLRQ
FXUUHQWV DUH HOLPLQDWHG WKDW RULJLQDWH DW WKH KHDWHU
FRLOV 7KH LPSXULWLHV DUH DOORZHG WR VHWWOH
)XHO WKDW UHWXUQV WR WKH VHWWOLQJ WDQN IURP WKH ORZHU
SRUWLRQ RI WKH GD\ WDQN ZLOO KDYH WKH PRVW
LPSXULWLHV 7KLV IXHO FDQ EH FHQWULIXJHG DJDLQ LQ
RUGHU WR UHPRYH WKH LPSXULWLHV
&HQWULIXJLQJ RI WKH /XEH 2LO
+HDY\ IXHO RLO LQWURGXFHV PRUH FRPEXVWLRQ SURGXFWV
LQWR WKH FUDQNFDVH WKDQ GLVWLOODWH IXHO 7KH FRPEXVWLRQ
SURGXFWV FRQWDPLQDWH WKH OXEH RLO $ UHPRWH PRXQWHG
FHQWULIXJDO VHSDUDWRU ZLOO KHOS WR FOHDQ WKH HQJLQH
FUDQNFDVH RLO LQFUHDVLQJ WKH VHUYLFH OLIH RI WKH RLO
&RQWLQXRXV VHSDUDWLRQ LV UHTXLUHG
7KH IORZ UDWH LV GHWHUPLQHG SULPDULO\ E\ WKH HQJLQH
SRZHU RXWSXW ,I WKH FHQWULIXJH LV VLPXOWDQHRXVO\
UHFHLYLQJ RLO DQG GLVFKDUJLQJ VHGLPHQW WKH PLQLPXP
IORZ UDWH LV /EN: KU JDOEKS KU 6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
&RROLQJ RI WKH )XHO ,QMHFWRU 7LSV
)LOWHULQJ RI WKH )XHO
'XULQJ HQJLQH RSHUDWLRQ ZLWK KHDY\ IXHO RLO WKH IXHO
LQMHFWRU WLSV DUH FRROHG 7KLV KHOSV WR SUHYHQW ZHDU
DQG WKH IRUPDWLRQ RI GHSRVLWV
7KH TXDOLW\ RI WKH IXHO LV DQ LPSRUWDQW FRQVLGHUDWLRQ
IRU PDLQWHQDQFH RI WKH IXHO ILOWHUV $ SRRU TXDOLW\ RI
IXHO FDQ UHGXFH WKH VHUYLFH OLIH RI WKH IXHO ILOWHU
HOHPHQWV E\ SHUFHQW RU PRUH 7R LQFUHDVH WKH
VHUYLFH OLIH RI IXHO ILOWHU HOHPHQWV XVH D JRRG TXDOLW\
RI IXHO 0RQLWRU WKH UHDGLQJV RI WKH IXHO JDXJHV DQG
VHUYLFH WKH IXHO ILOWHUV DW WKH UHFRPPHQGHG LQWHUYDOV
)RU IXHOV ZLWK D PD[LPXP YLVFRVLW\ RI F6W DW &
) H[FHVV IXHO LV URXWHG WKURXJK WKH WLSV LQ
RUGHU WR FRRO WKH WLSV )RU WKLV ³VHULHV FLUFXLW´ FRROLQJ
WKH HQJLQH LV HTXLSSHG ZLWK WKH UHTXLUHG KDUGZDUH
$GGLWLRQDO H[WHUQDO SOXPELQJ LV QRW QHFHVVDU\
)RU IXHOV ZLWK D YLVFRVLW\ WKDW LV DERYH F6W DW &
) DQ H[WHUQDO PRGXOH IRU FRROLQJ WKH IXHO
LQMHFWRU WLSV LV UHTXLUHG 7KH PRGXOH FRQVLVWV RI
VHYHUDO SDUWV WKDW LQFOXGH WKHVH FRPSRQHQWV
3LSLQJ
7DQN ZLWK D VLJKW JDXJH
)LOWHU IRU WKH FRRODQW
7KH VHFRQGDU\ IXHO ILOWHUV WKDW DUH VXSSOLHG E\ &DW
DUH PRXQWHG UHPRWHO\ IURP WKH HQJLQH 7KH ILOWHUV DUH
LQVWDOOHG LQ WKH IXHO VXSSO\ OLQH GLUHFWO\ EHIRUH WKH
HQJLQH
127,&(
)RU KHDY\ IXHO RLO ZLWK D YLVFRVLW\ RI F6W DW &
) WKH YLVFRVLW\ RI WKH IXHO PXVW EH UHGXFHG SUL
RU WR WKH IXHO ILOWHUV 7KLV ZLOO DOORZ IXHO WR SDVV WKURXJK
WKH ILOWHU HOHPHQWV ZLWKRXW FDXVLQJ WKH HOHPHQWV WR
FROODSVH 5HGXFH WKH YLVFRVLW\ WR D UDQJH WKDW LV EH
WZHHQ DQG F6W DW & ) 'LIIHUHQWLDO SUHVVXUH JDXJH ILOWHU
9DOYHV
3XPS
3UHVVXUH JDXJH
2QH WHPSHUDWXUH JDXJH EHIRUH WKH HQJLQH DQG RQH
WHPSHUDWXUH JDXJH DIWHU WKH HQJLQH
$Q DODUP IRU ORZ FRRODQW SUHVVXUH
+HDW H[FKDQJHU
2YHUKHDWLQJ WKH IXHO RU WKH IXHO ILOWHU FDQ UHVXOW LQ
SHUVRQDO LQMXU\ DQGRU GDPDJH WR WKH HQJLQH 8VH
H[WUHPH FDUH DQG FDXWLRQ IRU KHDWLQJ RI WKH IXHO
ILOWHU
+HDWLQJ RI WKH IXHO ILOWHU ZLOO HQDEOH WKH YLVFRVLW\ WR EH
UHGXFHG 7KH IXHO WHPSHUDWXUH DQG ZDUPXS WLPH
GHSHQG RQ WKH W\SH RI IXHO DQG LQVWDOODWLRQ
$ WKHUPRVWDWLF UHJXODWRU PD\ DOVR EH UHTXLUHG )RU
WKH FRRODQW WKDW UHFLUFXODWHV IURP WKH HQJLQH VHOHFW D
FRQWURO YDOYH WKDW ZLOO PDLQWDLQ WKH WHPSHUDWXUH RI WKH
FRRODQW EHWZHHQ WR & WR ) 1RUPDOO\ WKH FRRODQW LV 6$( : WR 6$( JUDGH
GLHVHO HQJLQH RLO
127,&(
7KH YLVFRVLW\ RI WKH IXHO DW WKH HQJLQH PXVW EH EH
WZHHQ F6W DQG F6W 7KH WHPSHUDWXUH RI WKH IXHO
DW WKH HQJLQH PXVW QRW H[FHHG & ) 0DLQWDLQ WKH FRRODQW WR WKH IXHO LQMHFWRUV XQGHU WKH
IROORZLQJ FRQGLWLRQV
+HDWLQJ RI WKH )XHO
7HPSHUDWXUH RI WR & WR )
3UHVVXUH RI WR N3D WR SVL
)ORZ UDWH RI OLWHUV SHU PLQXWH IRU HDFK IXHO
LQMHFWRU
3UHFLVH WHPSHUDWXUH FRQWURO RI KHDY\ IXHO RLO LV FULWLFDO
IRU WKH PRVW FRPSOHWH FRPEXVWLRQ FHQWULIXJDO
FOHDQLQJ DQG VHWWOLQJ RI FRQWDPLQDQWV ,I WKH
WHPSHUDWXUH LV QRW SURSHUO\ FRQWUROOHG VOXGJH DQG
YDSRUV FDQ IRUP 7KLV PDWHULDO LQKLELWV WKH WUHDWPHQW
RI WKH IXHO $OVR FRPEXVWLRQ RI WKH IXHO LV UHGXFHG
7KH UHVXOW LV D UHGXFWLRQ RI WKH VHUYLFH OLIH RI WKH IXHO
V\VWHP FRPSRQHQWV DQG WKH HQJLQH
'R QRW RSHUDWH WKH PRGXOH EHIRUH VWDUWLQJ WKH HQJLQH
5HJDUGOHVV RI WKH W\SH RI IXHO WKDW LV XVHG DOZD\V
RSHUDWH WKH PRGXOH ZKHQ WKH HQJLQH LV UXQQLQJ
)UHVK FRRODQW LV FRQVWDQWO\ VXSSOLHG WR WKH IXHO
LQMHFWRU WLSV +LJK WHPSHUDWXUHV DW WKH IXHO LQMHFWRUV
FDXVH GHJUDGDWLRQ RI WKH FRRODQW
1RWH 7KH WHPSHUDWXUHV WKDW DUH UHTXLUHG IRU
FRQWUROOLQJ VOXGJH DQG YDSRU PDLQO\ GHSHQG RQ WKH
IXHO TXDOLW\ $Q DQDO\VLV RI WKH IXHO LV QHFHVVDU\ WR
GHWHUPLQH WKH SURSHU WHPSHUDWXUH IRU ERWK WUHDWPHQW
DQG YLVFRVLW\
1RWH &KHFN WKH FRRODQW OHYHO WKH WHPSHUDWXUH DQG
WKH SUHVVXUH IUHTXHQWO\
7KH IROORZLQJ SDUDPHWHUV FDQ EH XVHG DV LQLWLDO
LQGLFDWLRQV RI LPSURSHU WHPSHUDWXUH FRQWURO
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
9DULDWLRQ RI WKH H[KDXVW SRUW WHPSHUDWXUHV
9LVFRVLW\ RI WKH IXHO
.QRFNLQJ
)XHO WHPSHUDWXUH
2SDFLW\ RI WKH H[KDXVW VPRNH
8VH WKH MDFNHW ZDWHU KHDWHUV EHIRUH VWDUWLQJ DQ
HQJLQH ZLWK KHDY\ IXHO RLO 8VH RI WKH MDFNHW ZDWHU
KHDWHUV ZLOO UHGXFH WKH YLVFRVLW\ RI WKH IXHO LQ WKH IXHO
LQMHFWRUV 6WDUWDELOLW\ ZLOO EH LPSURYHG
7DEOH OLVWV WKH MDFNHW ZDWHU WHPSHUDWXUHV WKDW DUH
DSSURSULDWH IRU GLIIHUHQW IXHO YLVFRVLWLHV
7DEOH )XHO 9LVFRVLW\ DQG -DFNHW :DWHU 7HPSHUDWXUH
)XHO 9LVFRVLW\
-DFNHW :DWHU
7HPSHUDWXUH
/HVV WKDQ F6W DW & )
& )
0RUH WKDQ F6W DW & )
& )
1RUPDOO\ GHDFWLYDWH WKH MDFNHW ZDWHU KHDWHUV DIWHU WKH
HQJLQH KDV VWDUWHG
$QDO\VLV RI +HDY\ )XHO 2LO
&DWHUSLOODU ,QF GRHV QRW SURYLGH DQDO\VHV RI KHDY\
IXHO RLO &KHPLFDO ODEV WKURXJKRXW WKH ZRUOG FDQ
HYDOXDWH IXHO SURSHUWLHV RQ D UHJXODU EDVLV $QDO\VHV
RI KHDY\ IXHO RLO PD\ DOVR EH REWDLQHG IURP WKHVH
RUJDQL]DWLRQV LQGHSHQGHQW WHVWLQJ ODERUDWRULHV RLO
FRPSDQLHV DQG PDULQH UHJXODWLQJ DJHQFLHV )RU
DFFXUDWH UHVXOWV WKH DQDO\VLV RI KHDY\ IXHO RLO PXVW
EH SHUIRUPHG DW D ODERUDWRU\ ZLWK SHUVRQQHO WKDW LV
IDPLOLDU ZLWK WKLV W\SH RI IXHO 7KH IROORZLQJ DUH VRPH
RI WKH ODERUDWRULHV WKDW FDQ SURYLGH IXHO DQDO\VHV
'HW 1RUVNH 9HULWDV '19
'19 3HWUROHXP 6HUYLFHV
5HJLRQDO 2IILFH /DERUDWRU\
&KDQJL 6RXWK 6WUHHW 6LQJDSRUH 7HOHSKRQH )DFVLPLOH 7HOH[ 56 '1936
(PDLO VLQJDSRUH#GQYSVFRP
'19 3HWUROHXP 6HUYLFHV
%UDQFK 2IILFH /DERUDWRU\
)XMDLUDK 8$(
3RUW RI )XMDLUDK
3 2 %R[ 8QLWHG $UDE (PLUDWHV
7HOHSKRQH )DFVLPLOH (PDLO IXMDLUDK#GQYSVFRP
'19 3HWUROHXP 6HUYLFHV
5HJLRQDO 2IILFH /DERUDWRU\
5RWWHUGDP 7KH 1HWKHUODQGV
+DDVWUHFKWVWUDDW '& 5RWWHUGDP
32 %R[ $1 5RWWHUGDP
7KH 1HWKHUODQGV
7HOHSKRQH )DFVLPLOH (PDLO URWWHUGDP#GQYSVFRP
'19 3HWUROHXP 6HUYLFHV
5HJLRQDO 2IILFH
/RQGRQ 8.
3DODFH +RXVH
&DWKHGUDO 6WUHHW
/RQGRQ 6( '(
8QLWHG .LQJGRP
7HOHSKRQH )DFVLPLOH (PDLO ORQGRQ#GQYSVFRP
'19 3HWUROHXP 6HUYLFHV
5HJLRQDO 2IILFH /DERUDWRU\
2VOR 1RUZD\
9HULWDVYHLHQ 1 +YLN1RUZD\
7HOHSKRQH )DFVLPLOH 7HOH[ 9(5,71
(PDLO GQYSVRVOR#GQYFRP
'19 3HWUROHXP 6HUYLFHV
%UDQFK 2IILFH /DERUDWRU\
+RXVWRQ 7H[DV 86$
1RUWK WK 6WUHHW
/D 3RUWH 7H[DV 86$
7HOHSKRQH )DFVLPLOH (PDLO KRXVWRQ#GQYSVFRP
/OR\G V 5HJLVWHU /DERUDWRU\
/OR\G V 5HJLVWHU (0($
)HQFKXUFK 6WUHHW
/RQGRQ (&0 %6 8.
7HOHSKRQH )DFVLPLOH (PDLO HPHD#OURUJ
/OR\G V 5HJLVWHU $VLD
6XLWH &KLQD 0HUFKDQWV 7RZHU
6KXQ 7DN &HQWUH
&RQQDXJKW 5RDG &HQWUDO
+RQJ .RQJ 6$5 RI 35&
7HOHSKRQH )DFVLPLOH (PDLO DVLD#OURUJ
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
/OR\G V 5HJLVWHU $PHULFDV ,QF
(QFODYH 3DUNZD\
6XLWH +RXVWRQ 7H[DV 86$
7HOHSKRQH )DFVLPLOH (PDLO DPHULFDV#OURUJ
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
*HQHUDO &RRODQW ,QIRUPDWLRQ
&RROLQJ 6\VWHP
6SHFLILFDWLRQV
L
*HQHUDO &RRODQW ,QIRUPDWLRQ
60&6 &RGH 7KH FRROLQJ V\VWHP RSHUDWHV XQGHU SUHVVXUH
ZKLFK LV FRQWUROOHG E\ WKH UDGLDWRU SUHVVXUH FDS
5HPRYLQJ WKH FDS ZKLOH WKH V\VWHP LV KRW PD\ DO
ORZ WKH HVFDSH RI KRW FRRODQW DQG VWHDP FDXVLQJ
VHULRXV EXUQV
%HIRUH \RX UHPRYH WKH UDGLDWRU FDS DOORZ WKH V\V
WHP WR FRRO 8VH D WKLFN FORWK DQG WXUQ WKH UDGLDWRU
FDS VORZO\ WR WKH ILUVW VWRS WR DOORZ SUHVVXUH WR HV
FDSH EHIRUH IXOO\ UHPRYLQJ WKH FDS
$YRLG FRQWDFW ZLWK FRRODQW
127,&(
(YHU\ DWWHPSW LV PDGH WR SURYLGH DFFXUDWH XSWRGDWH
LQIRUPDWLRQ %\ WKH XVH RI WKLV GRFXPHQW \RX DJUHH
WKDW &DWHUSLOODU ,QF LV QRW UHVSRQVLEOH IRU HUURUV RU
RPLVVLRQV
7KH LQIRUPDWLRQ WKDW LV SURYLGHG LV WKH ODWHVW
UHFRPPHQGDWLRQV IRU WKH &DW GLHVHO HQJLQHV WKDW DUH
FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ 7KLV LQIRUPDWLRQ
VXSHUVHGHV DOO SUHYLRXV UHFRPPHQGDWLRQV ZKLFK
KDYH EHHQ SXEOLVKHG IRU WKH &DW GLHVHO HQJLQHV WKDW
DUH FRYHUHG E\ WKLV 6SHFLDO 3XEOLFDWLRQ 6SHFLDO IOXLGV
PD\ EH UHTXLUHG IRU VRPH HQJLQHV &RQWLQXH WR XVH
WKHVH VSHFLDO SURGXFWV 5HIHU WR WKH DSSOLFDEOH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
7KLV SXEOLFDWLRQ LV D VXSSOHPHQW WR WKH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO 7KLV SXEOLFDWLRQ GRHV QRW
UHSODFH WKH HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO
127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
127,&(
,Q RUGHU WR DYRLG SRWHQWLDO GDPDJH WR \RXU &DW PD
FKLQH DQGRU &DW HQJLQH RQO\ SXUFKDVH &DW IOXLGV DQG
&DW ILOWHUV WKURXJK \RXU &DW GHDOHU RU &DW DXWKRUL]HG
RXWOHWV )RU D OLVW RI DXWKRUL]HG &DW SDUWV RXWOHWV LQ
\RXU DUHD FRQVXOW \RXU &DW GHDOHU
,I \RX SXUFKDVH ZKDW DSSHDU WR EH &DW IOXLGV DQG
RU &DW ILOWHUV WKURXJK RWKHU RXWOHWVVRXUFHV \RX
DUH DW D YHU\ KLJK ULVN RI SXUFKDVLQJ FRXQWHUIHLW
³ORRNDOLNH´ SURGXFWV
&RXQWHUIHLW RU ³ORRNDOLNH´ SURGXFWV PD\ YLVXDOO\ DS
SHDU WKH VDPH DV WKH RULJLQDO &DW SURGXFW EXW WKH
SURGXFW SHUIRUPDQFH DQG LQWHUQDO TXDOLW\ ZLOO W\SLFDOO\
EH YHU\ ORZ
&RXQWHUIHLW RU ³ORRNDOLNH´ SURGXFWV KDYH D YHU\ KLJK
OLNHOLKRRG RI FDXVLQJ DQGRU DOORZLQJ HQJLQH DQGRU
PDFKLQH FRPSDUWPHQW GDPDJH
127,&(
&RPPHUFLDO SURGXFWV WKDW PDNH JHQHULF FODLPV RI
PHHWLQJ ³&DW ´ UHTXLUHPHQWV ZLWKRXW OLVWLQJ WKH VSHFLI
LF &DW UHFRPPHQGDWLRQV DQG UHTXLUHPHQWV WKDW DUH
PHW PD\ QRW SURYLGH DFFHSWDEOH SHUIRUPDQFH &RP
PHUFLDO SURGXFWV PD\ FDXVH UHGXFHG HQJLQH DQGRU
PDFKLQH IOXLG FRPSDUWPHQW OLIH 5HIHU WR WKLV 6SHFLDO
3XEOLFDWLRQ DQG UHIHU WR SURGXFW VSHFLILF 2SHUDWLRQ
DQG 0DLQWHQDQFH 0DQXDO IRU &DW IOXLGV UHFRPPHQGD
WLRQV DQG UHTXLUHPHQWV
127,&(
1HYHU DGG FRRODQW WR DQ RYHUKHDWHG HQJLQH (QJLQH
GDPDJH FRXOG UHVXOW $OORZ WKH HQJLQH WR FRRO ILUVW
127,&(
,I WKH HQJLQH LV WR EH VWRUHG LQ RU VKLSSHG WR DQ DUHD
ZLWK EHORZ IUHH]LQJ WHPSHUDWXUHV WKH FRROLQJ V\VWHP
PXVW EH HLWKHU SURWHFWHG WR WKH ORZHVW RXWVLGH WHPSHU
DWXUH RU GUDLQHG FRPSOHWHO\ LQ RUGHU WR SUHYHQW GDP
DJH FDXVHG E\ IUHH]LQJ FRRODQW
127,&(
1HYHU RSHUDWH DQ HQJLQH ZLWKRXW ZDWHU WHPSHUDWXUH
UHJXODWRUV LQ WKH FRROLQJ V\VWHP :DWHU WHPSHUDWXUH
UHJXODWRUV KHOS WR PDLQWDLQ WKH HQJLQH FRRODQW DW WKH
SURSHU RSHUDWLQJ WHPSHUDWXUH &RROLQJ V\VWHP SURE
OHPV FDQ GHYHORS ZLWKRXW ZDWHU WHPSHUDWXUH
UHJXODWRUV
,I \RX RSHUDWH WKH HQJLQH ZLWKRXW WKH UHJXODWRU VRPH
FRRODQW E\SDVVHV WKH UDGLDWRU 7KLV PD\ FDXVH
RYHUKHDWLQJ
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
*HQHUDO &RRODQW ,QIRUPDWLRQ
1RWH 5HIHU WR WKH VSHFLILF HQJLQH 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO ³0DLQWHQDQFH ,QWHUYDO
6FKHGXOH´ IRU WKH FRUUHFW LQWHUYDO IRU WKH UHSODFHPHQW
RI WKH WKHUPRVWDW
5HIHU WR 6SHFLDO ,QVWUXFWLRQ 6(%' ³.QRZ <RXU
&RROLQJ 6\VWHP´ IRU PRUH GHWDLOHG LQIRUPDWLRQ
0DQ\ HQJLQH IDLOXUHV DUH UHODWHG WR WKH FRROLQJ
V\VWHP 7KH IROORZLQJ SUREOHPV DUH UHODWHG WR FRROLQJ
V\VWHP IDLOXUHV
2YHUKHDWLQJ
/HDNDJH RI WKH ZDWHU SXPS
3OXJJHG UDGLDWRUV RU KHDW H[FKDQJHUV
3LWWLQJ RI WKH F\OLQGHU OLQHUV
7KHVH IDLOXUHV FDQ EH DYRLGHG ZLWK SURSHU FRROLQJ
V\VWHP PDLQWHQDQFH &RROLQJ V\VWHP PDLQWHQDQFH LV
DV LPSRUWDQW DV PDLQWHQDQFH RI WKH IXHO V\VWHP DQG
WKH OXEULFDWLRQ V\VWHP 4XDOLW\ RI WKH FRRODQW LV DV
LPSRUWDQW DV WKH TXDOLW\ RI WKH IXHO DQG WKH OXEULFDWLQJ
RLO
1RWH ,Q JO\FROEDVHG FRRODQWV &DW VWURQJO\
UHFRPPHQGV D PLQLPXP RI SHUFHQW JO\FRO LQ GLHVHO
HQJLQH FRROLQJ V\VWHPV ZLWK D PLQLPXP RI SHUFHQW JO\FRO UHFRPPHQGHG 8VH RQO\ JO\FROEDVHG
FRRODQWV WKDW PHHW RQH RU PRUH RI WKH FRRODQW
VSHFLILFDWLRQV WKDW DUH GHILQHG DV SUHIHUUHG RU
DFFHSWDEOH LQ WKLV 6SHFLDO 3XEOLFDWLRQ DQG WKDW DOVR
FRPSO\ ZLWK DQ\ DGGLWLRQDO UHTXLUHPHQWV WKDW DUH
VWDWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ WKDW LV FKHPLFDO
FRPSRVLWLRQ WKH XVH RI 6&$ WKH XVH RI ([WHQGHU 5HIHU WR WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU
\RXU HQJLQH IRU DQ\ H[FHSWLRQV DQG UHIHU WR 7DEOH IRU PDULQH HQJLQH H[FHSWLRQV
127,&(
$OO &DW HQJLQHV WKDW DUH HTXLSSHG ZLWK D &DW 12[ 5H
GXFWLRQ 6\VWHP UHTXLUH D PLQLPXP RI SHUFHQW JO\
FRO WR KHOS SUHYHQW FDYLWDWLRQ GDPDJH DQG ERLOLQJ RI
WKH HQJLQH FRRODQW 7KHVH HQJLQHV LQFOXGH 7LHU HQJLQHV
$ FRRODQW WKDW LV UHDG\ WR XVH LQ WKH HQJLQH FDQ DOVR
EH UHIHUUHG WR DV ³ILQLVKHG FRRODQW´ $ ILQLVKHG FRRODQW
LV D FRRODQW WKDW KDV EHHQ GLOXWHG ZLWK DSSURSULDWH
DPRXQW RI DFFHSWDEOH TXDOLW\ ZDWHU
&RRODQW LV QRUPDOO\ FRPSRVHG RI WKH IROORZLQJ
HOHPHQWV
ZDWHU
DGGLWLYHV
JO\FRO
(PELWWHUPHQW LQ FRRODQWV FRQWDLQLQJ HWK\OHQH
JO\FRO WR PDNH WKH FRRODQW WDVWH EDG
7HFKQLFDO LQIRUPDWLRQ IRU HDFK RI WKH FRRODQW
HOHPHQWV LV SURYLGHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ
:DWHU
127,&(
1HYHU XVH ZDWHU DORQH DV D FRRODQW :DWHU DORQH LV
FRUURVLYH DW HQJLQH RSHUDWLQJ WHPSHUDWXUHV ,Q DGGL
WLRQ ZDWHU DORQH GRHV QRW SURYLGH DGHTXDWH SURWHF
WLRQ DJDLQVW ERLOLQJ RU IUHH]LQJ
7DEOH 6SHFLDO 5HTXLUHPHQWV &DW HQJLQH PRGHO
:DWHU EDVHG (/, LV UHFRPPHQGHG :DWHU EDVHG 6&$ LV DFFHSWDEOH
*O\FROEDVHG FRRODQWV DUH 127 DOORZHG
:DWHU EDVHG (/, DQG 6&$ DUH QRW UHFRPPHQGHG IRU XVH LQ DSSOLFDWLRQV WKDW UHTXLUH IUHH]H SURWHFWLRQ :DWHU EDVHG FRRODQWV DUH JO\FROIUHH
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
*HQHUDO &RRODQW ,QIRUPDWLRQ
&& KHDW H[FKDQJHU FRROHG PDULQH HQJLQHV
UHTXLUH D PLQLPXP RI SHUFHQW JO\FRO WR SUHYHQW
FDYLWDWLRQ RI FRROLQJ V\VWHP FRPSRQHQWV ZLWK D
PLQLPXP RI SHUFHQW JO\FRO UHFRPPHQGHG
1RWH )RU HQJLQHV WKDW UHTXLUH D PD[LPXP RI JO\FRO PDNH VXUH WKDW WKH DPRXQW RI DGGLWLYH LQ WKH
ILQDO PL[ LV DSSURSULDWH ([DPSOH RI PL[LQJ D JO\FRO VROXWLRQ LV JLYHQ LQ 7DEOH 7DEOH ([DPSOH RI 0L[LQJ 8S D *O\FRO &RRODQW
7RWDO 9ROXPH RI
WKH &RROLQJ
6\VWHP
*DOORQV
/RFDO ZDWHU XWLOLW\ FRPSDQ\
$JULFXOWXUDO DJHQW
,QGHSHQGHQW ODERUDWRU\
3HULRGLF DQDO\VLV RI ZDWHU WKDW LV XVHG WR DGG WR WKH
FRRODQW LV UHFRPPHQGHG :DWHU TXDOLW\ FDQ EH
DIIHFWHG E\ YDULRXV IDFWRUV LQFOXGLQJ PDOIXQFWLRQLQJ
SXULILFDWLRQ HTXLSPHQW HDUWKTXDNHV DQG GURXJKWV
$GGLWLYHV
$GG WKH )ROORZLQJ
(/&
&RQFHQWUDWH
(/,
&RQFHQWUDWH
:DWHU
*DOORQV
*DOORQV
*DOORQV
9ROXPHV FDQ DOVR EH LQ OLWHUV DV ORQJ DV DOO WKH YROXPH XQLWV DUH
FRQVLVWHQW
:DWHU LQ WKH ZDWHUJO\FRO FRRODQWV LV PRUH HIIHFWLYH
WKDQ JO\FRO DORQH LQ WUDQVIHUULQJ KHDW
'LVWLOOHG ZDWHU RU GHLRQL]HG ZDWHU LV
UHFRPPHQGHG WR DGG WR JO\FRO RU WR ZDWHU EDVHG
FRRODQWV LQ HQJLQH FRROLQJ V\VWHPV
'2 127 XVH WKH IROORZLQJ W\SHV RI ZDWHU LQ FRROLQJ
V\VWHPV KDUG ZDWHU VRIWHQHG ZDWHU WKDW KDV EHHQ
FRQGLWLRQHG ZLWK VDOW DQG VHD ZDWHU
,I GLVWLOOHG ZDWHU RU GHLRQL]HG ZDWHU LV QRW DYDLODEOH
XVH ZDWHU WKDW PHHWV RU H[FHHGV WKH PLQLPXP
DFFHSWDEOH ZDWHU UHTXLUHPHQWV WKDW DUH OLVWHG LQ 7DEOH
7DEOH &DW 0LQLPXP $FFHSWDEOH :DWHU 5HTXLUHPHQWV
&DW GHDOHU
$GGLWLYHV KHOS WR SURWHFW WKH PHWDO VXUIDFHV RI WKH
FRROLQJ V\VWHP DQG FDQ LPSURYH FRRODQW
SHUIRUPDQFH $ ODFN RI FRRODQW DGGLWLYHV LQVXIILFLHQW
DPRXQWV RI DGGLWLYHV RU LPSURSHU DGGLWLYHV IRU WKH
DSSOLFDWLRQ FDQ FDXVH WKH IROORZLQJ FRQGLWLRQV WR
RFFXU
&RUURVLRQ
)RUPDWLRQ RI PLQHUDO GHSRVLWV
5XVW
6FDOH
3LWWLQJ DQG HURVLRQ IURP FDYLWDWLRQ RI WKH F\OLQGHU
OLQHU
)RDPLQJ RI WKH FRRODQW
0DQ\ DGGLWLYHV DUH GHSOHWHG GXULQJ HQJLQH RSHUDWLRQ
7KHVH DGGLWLYHV PXVW EH UHSODFHG SHULRGLFDOO\
$GGLWLYHV WKDW FDQ EH DGGHG
(/& ([WHQGHU WR &DW (/& ([WHQGHG /LIH
&RRODQW
3URSHUW\
0D[LPXP /LPLW
$670 7HVW
&KORULGH &O
PJ/ JUDLQV86 JDO
³'´
³'´
(/& ([WHQGHU WR &DW (/, ([WHQGHG /LIH ,QKLELWRU
6XOIDWH 62
PJ/
JUDLQV86 JDO
³'´
³'´
&DW 6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH WR &DW
'($& 'LHVHO (QJLQH $QWLIUHH]H&RRODQW
7RWDO +DUGQHVV
PJ/
JUDLQV86 JDO
³'´
ā &DW 6&$ WR &DW 6&$ LQ ZDWHU ILQLVKHG FRRODQW
7RWDO 6ROLGV
PJ/
JUDLQV86 JDO
³'´
³)HGHUDO
0HWKRG
%´ $GGLWLYHV PXVW EH DGGHG DW WKH SURSHU FRQFHQWUDWLRQ
2YHUFRQFHQWUDWLRQ RI DGGLWLYHV FDQ FDXVH WKH
LQKLELWRUV WR GURS RXWRIVROXWLRQ 7KH GHSRVLWV FDQ
HQDEOH WKH IROORZLQJ SUREOHPV WR RFFXU
$FLGLW\
S+ RI WR ³'´
7RWDO GLVVROYHG VROLGV GULHG DW & ) &
) ³6WDQGDUG 0HWKRG IRU WKH ([DPLQDWLRQ RI :DWHU DQG
:DVWHZDWHU´ ³$PHULFDQ 3XEOLF +HDOWK $VVRFLDWLRQ´ ³ZZZ
DSKDRUJ´ ³ZZZDSKDERRNVWRUHRUJ´ $3+$
)RU D ZDWHU DQDO\VLV FRQVXOW RQH RI WKH IROORZLQJ
VRXUFHV
)RUPDWLRQ RI JHO FRPSRXQGV
5HGXFWLRQ RI KHDW WUDQVIHU
/HDNDJH RI WKH ZDWHU SXPS VHDO
3OXJJLQJ RI UDGLDWRUV FRROHUV DQG VPDOO SDVVDJHV
*O\FRO
*O\FRO LQ WKH FRRODQW KHOSV WR SURYLGH SURWHFWLRQ
DJDLQVW WKH IROORZLQJ FRQGLWLRQV
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
*HQHUDO &RRODQW ,QIRUPDWLRQ
%RLOLQJ
7HVWLQJ WKH &RQFHQWUDWLRQ RI *O\FRO
)UHH]LQJ
7R FKHFN WKH FRQFHQWUDWLRQ RI JO\FRO XVH WKH
&RRODQW%DWWHU\ 7HVWHU5HIUDFWRPHWHU RU
UHIUDFWRPHWHU 7KH WHVWHU FDQ EH XVHG ZLWK
HWK\OHQH RU SURS\OHQH JO\FRO
:DWHU SXPS FDYLWDWLRQ $7$$& HTXLSSHG HQJLQHV
)RU RSWLPXP SHUIRUPDQFH &DW UHFRPPHQGV D SHUFHQW E\ YROXPH RI JO\FRO LQ WKH ILQLVKHG FRRODQW
DOVR UHIHUUHG WR DV PL[WXUH 1RWH 8VH D PL[WXUH WKDW ZLOO SURYLGH SURWHFWLRQ
DJDLQVW WKH ORZHVW DPELHQW WHPSHUDWXUH
0RVW FRQYHQWLRQDO KHDY\GXW\ FRRODQWDQWLIUHH]HV
XVH HWK\OHQH JO\FRO 3URS\OHQH JO\FRO PD\ DOVR EH
XVHG ,Q D SHUFHQW E\ YROXPH RI JO\FRO LQ WKH
ILQLVKHG FRRODQW HWK\OHQH DQG SURS\OHQH JO\FRO
SURYLGH VLPLODU SURWHFWLRQ DJDLQVW IUHH]LQJ DQG
ERLOLQJ 5HIHU WR WDEOHV DQG 7DEOH (WK\OHQH *O\FRO &RQFHQWUDWLRQ
&RQFHQWUDWLRQ
)UHH]H
3URWHFWLRQ
%RLO 3URWHFWLRQ
3HUFHQW
í & )
& )
3HUFHQW
í & í )
& )
3HUFHQW
í & í )
& )
%RLOLQJ SURWHFWLRQ LV LQFUHDVHG ZLWK WKH XVH RI D SUHVVXUL]HG
UDGLDWRU
'R QRW XVH SURS\OHQH JO\FRO LQ FRQFHQWUDWLRQV WKDW
H[FHHG SHUFHQW JO\FRO EHFDXVH RI WKH UHGXFHG
KHDW WUDQVIHU FDSDELOLW\ 8VH HWK\OHQH JO\FRO LQ
FRQGLWLRQV WKDW UHTXLUH DGGLWLRQDO SURWHFWLRQ DJDLQVW
ERLOLQJ RU IUHH]LQJ 'R QRW XVH HWK\OHQH JO\FRO LQ
FRQFHQWUDWLRQV WKDW H[FHHG SHUFHQW JO\FRO
7DEOH 3URS\OHQH *O\FRO &RQFHQWUDWLRQ
&RQFHQWUDWLRQ
)UHH]H 3URWHFWLRQ
3HUFHQW
í & í )
,OOXVWUDWLRQ J
$SSUR[LPDWH FXUYH RI WKH IUHH]LQJ SRLQW IRU D W\SLFDO
HWK\OHQH JO\FRO VROXWLRQ
7DEOH )UHH]H 3URWHFWLRQ IRU $QWLIUHH]H &RQFHQWUDWLRQV %RLO 3URWHFWLRQ
& )
%RLOLQJ SURWHFWLRQ LV LQFUHDVHG ZLWK WKH XVH RI D SUHVVXUL]HG
UDGLDWRU
3URS\OHQH JO\FRO FRRODQW WKDW LV XVHG LQ WKH FRROLQJ
V\VWHPV IRU &DW GLHVHO HQJLQHV PXVW PHHW $670
' ³)XOO\)RUPXODWHG *O\FRO%DVHG (QJLQH
&RRODQW IRU +HDY\'XW\ (QJLQHV´ :KHQ SURS\OHQH
JO\FRO FRRODQW LV XVHG LQ KHDY\GXW\ GLHVHO HQJLQHV D
UHJXODU DGGLWLRQ RI 6&$ LV UHTXLUHG IRU SURWHFWLRQ
DJDLQVW OLQHU FDYLWDWLRQ &RQVXOW \RXU &DW GHDOHU IRU
DGGLWLRQDO LQIRUPDWLRQ
(WK\OHQH RU SURS\OHQH JO\FROV XVHG LQ FRROLQJ
V\VWHPV IRU &DW GLHVHO HQJLQHV PXVW PHHW $670
( ³6WDQGDUG 6SHFLILFDWLRQ IRU (QJLQH
&RRODQW *UDGH *O\FRO´
3URWHFWLRQ WR
&RQFHQWUDWLRQ
í & )
JO\FRO
ZDWHU
í & )
JO\FRO
ZDWHU
í & í )
JO\FRO
ZDWHU
í & í )
JO\FRO
ZDWHU
í & í )
JO\FRO
ZDWHU
(WK\OHQH JO\FROEDVHG DQWLIUHH]H
$OWHUQDWLYH SURGXFWV WKDW DUH XVHG WR SURWHFW IURP
ERLOLQJ RU IUHH]LQJ RI WKH HQJLQH FRRODQW LQFOXGH
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RRODQW 5HFRPPHQGDWLRQV
³ SURSDQGLRO´ 3'2
JO\FHULQ
PL[WXUHV RI WKHVH DOWHUQDWLYH SURGXFWV ZLWK JO\FRO
$W WKH WLPH RI SXEOLFDWLRQ RI WKLV GRFXPHQW WKHUH
FXUUHQWO\ H[LVWV QR $670 ³VSHFLILFDWLRQV´ IRU
FRRODQWV XVLQJ WKHVH FKHPLFDOV 8QWLO VSHFLILFDWLRQV
DUH SXEOLVKHG DQG WKHQ HYDOXDWHG E\ &DW XVH RI
3'2 DQG JO\FHULQ RU JO\FHULQJO\FRO FRRODQWV DUH
QRW UHFRPPHQGHG LQ &DW FRROLQJ V\VWHPV
(PELWWHUPHQW
(WK\OHQH JO\FRO LV D WR[LF FKHPLFDO ZLWK D QDWXUDOO\
VZHHW WDVWH ,Q RUGHU WR DYRLG DFFLGHQWDO H[FHVVLYH
LQJHVWLRQ E\ KXPDQV RU DQLPDOV FRRODQWV PD\
FRQWDLQ HPELWWHULQJ DJHQWV WKDW PDNH WKH FRRODQW
WDVWH EDG $OO &DW JO\FRO FRQWDLQLQJ FRRODQWV &DW
(/& &DW '($& DQG &DW 1*(& DUH HPELWWHUHG
(PELWWHULQJ DJHQWV KDYH QR EHQHILFLDO RU GHWULPHQWDO
HIIHFW RQ FRRODQW SHUIRUPDQFH RU FKDUDFWHULVWLFV
&RRODQW 7HUPLQRORJ\
([WHQGHG /LIH &RRODQW (/& ± $ FRRODQW WKDW UHOLHV
ODUJHO\ RQ RUJDQLF LQKLELWRUV IRU FRUURVLRQ DQG
FDYLWDWLRQ SURWHFWLRQ &DUER[\ODWH LV DQ H[DPSOH RI
RUJDQLF FRUURVLRQ DQG FDYLWDWLRQ LQKLELWRUV &DW (/&
DQG &DW (/, LQ ZDWHU DUH H[WHQGHG OLIH FRRODQWV WKDW
DOVR LQFOXGH QLWULWHV DQG PRO\EGDWHV IRU LQFUHDVHG
FDYLWDWLRQ SURWHFWLRQ
&RPPHUFLDO H[WHQGHG OLIH FRRODQWV FRQWDLQLQJ
VLOLFDWH GR QRW PHHW WKH DGGLWLRQDO UHTXLUHPHQWV VHW
LQ WKLV 6SHFLDO 3XEOLFDWLRQ IRU FRRODQWV FODLPLQJ WR
PHHW &DW (& VSHFLILFDWLRQ
'R QRW XVH FRPPHUFLDO H[WHQGHG OLIH FRRODQWV ZLWK
PRUH WKDQ SSP VLOLFRQ SUHVHQW LQ WKH FRRODQW
LQ WKH IRUP RI VLOLFDWH
([WHQGHG OLIH FRRODQWV WKDW PHHW ³$670 '
´ RU ³$670 '´ PD\ EH XVHG DW WKH
UHFRPPHQGHG PD[LPXP FRRODQW VHUYLFH OLIH
LQWHUYDOV VWDWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ IRU
FRRODQWV WKDW PHHW WKH $670 VSHFLILFDWLRQV
&RQYHQWLRQDO FRRODQW ± $ FRRODQW WKDW UHOLHV ODUJHO\
RQ LQRUJDQLF LQKLELWRUV IRU FRUURVLRQ DQG FDYLWDWLRQ
SURWHFWLRQ 6LOLFDWHV DQG QLWULWHV DUH H[DPSOHV RI
LQRUJDQLF LQKLELWRUV &RQYHQWLRQDO FRRODQWV DUH DOVR
UHIHUUHG WR DV KHDY\GXW\ FRRODQWV KHDY\GXW\ IXOO\
IRUPXODWHG FRRODQWV RU WUDGLWLRQDO FRRODQWV ,Q RUGHU
WR EH XVHG LQ PRVW &DW FRROLQJ V\VWHPV FRQYHQWLRQDO
FRRODQWV PXVW PHHW ³$670 '´ RU ³$670
'´ &DW '($& DQG &DW 6&$ LQ ZDWHU DOVR
UHIHUUHG WR DV 6&$:DWHU FRRODQW DUH FRQYHQWLRQDO
FRRODQWV
6XSSOHPHQWDO &RRODQW $GGLWLYH 6&$ ± 6&$ LV D
JHQHUDO WHUP IRU D FRQFHQWUDWHG LQRUJDQLF LQKLELWRU
SDFNDJH 6&$ LV XVHG IRU WKUHH GLIIHUHQW SXUSRVHV
WR SUHFKDUJH D QHZ FRQYHQWLRQDO FRRODQW WKDW LV QRW
IXOO\ )RUPXODWHG &DW '($& LV IXOO\ IRUPXODWHG DQG
GRHV QRW UHTXLUH 6&$
WR SURYLGH FRUURVLRQ SURWHFWLRQ LQ ZDWHU6&$
FRROLQJ V\VWHPV
WR UHFKDUJH DQ LQ VHUYLFH FRQYHQWLRQDO FRRODQW RQ D
PDLQWHQDQFH EDVLV WR PDLQWDLQ SURSHU LQKLELWRU
OHYHOV
([WHQGHU ± $Q LQKLELWRU SDFNDJH WKDW LV DGGHG WR
H[WHQGHG OLIH FRRODQWV WR UHFKDUJH DQ LQVHUYLFH
FRRODQW ([WHQGHUV W\SLFDOO\ RQO\ VKRXOG EH DGGHG DW
RQH KDOI WKH VHUYLFH OLIH RI WKH FRRODQW
L
&RRODQW 5HFRPPHQGDWLRQV
*HQHUDO 0DLQWHQDQFH
60&6 &RGH 7KH ILQLVKHG FRRODQWV WKDW DUH UHFRPPHQGHG RU
DFFHSWDEOH IRU XVH LQ &DW GLHVHO HQJLQHV DUH JLYHQ LQ
7DEOH EHORZ
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RRODQW 5HFRPPHQGDWLRQV
7DEOH 5HFRPPHQGDWLRQV IRU )LQLVKHG &RRODQWV IRU XVH LQ &DW HQJLQHV
&RRODQW 7\SH
5HFRPPHQGDWLRQV
6HUYLFH KRXUV
3URGXFW
KRXUV RU \HDUV
$GG &DW (/& ([WHQGHU DW
VHUYLFH KRXUV RU RQH
KDOI RI VHUYLFH OLIH
KRXUV RU \HDUV
$GG &DW (/& ([WHQGHU DW
VHUYLFH KRXUV RU RQH
KDOI RI VHUYLFH OLIH
&DW (& VSHFLILFDWLRQ DQG
³$670 '´ DQG
2UJDQLF $GGLWLYH 7HFKQRO
RJ\ 2$7 EDVHG RQ D FRP
ELQDWLRQ RI D
PRQRFDUER[\OLF DFLG DQG D
GLFDUER[\OLF DFLG
3KRVSKDWH ERUDWH DQG VLOL
FDWH IUHH
7RO\OWULD]ROH PLQLPXP W\SL
FDO FRQFHQWUDWLRQ RI SSP
1LWULWH PLQLPXP W\SLFDO FRQ
FHQWUDWLRQ RI SSP LQ
QHZ FRRODQWV
KRXUV RU \HDUV
$GG ([WHQGHU DW VHUYLFH KRXUV RU RQH KDOI
RI VHUYLFH OLIH
&DW '($&
KRXUV RU \HDUV
6&$ DW PDLQWHQDQFH
LQWHUYDOV
KRXUV RU \HDUV
6&$ DW PDLQWHQDQFH
LQWHUYDOV
0LQ UHTXLUHPHQWV IRU IXOO\
IRUPXODWHG +HDY\ 'XW\
&RPPHUFLDO FRRODQWV
³$670 '´ DQG
1LWULWH DV 12 FRQFHQWUD
WLRQ 0LQLPXP RI SSP
JUDLQV86 JDO DQG PD[
LPXP RI SSP JUDLQV86 JDO
6LOLFRQ FRQFHQWUDWLRQ PLQL
PXP RI SSP DQG PD[L
PXP RI SSP
KRXUV RU \HDUV
6&$ DW PDLQWHQDQFH
LQWHUYDOV
0LQ UHTXLUHPHQWV IRU &RP
PHUFLDO FRRODQWV UHTXLULQJ
6&$ SUHFKDUJH
³$670 '´ DQG 1LWULWH DV 12 FRQFHQWUD
WLRQ 0LQLPXP RI SSP
JUDLQV86 JDO DQG PD[
LPXP RI SSP JUDLQV86 JDO
6LOLFRQ FRQFHQWUDWLRQ PLQL
PXP RI SSP DQG PD[L
PXP RI SSP
KRXUV RU \HDU
6&$ DW LQLWLDO ILOO DQG 6&$
DW PDLQWHQDQFH LQWHUYDOV
0LQ UHTXLUHPHQWV IRU 6&$
DQG ZDWHU &RPPHUFLDO VXSSOHPHQWDO
FRRODQW DGGLWLYH DQG ZDWHU
KDYLQJ
1LWULWH DV 12 FRQFHQWUD
WLRQ 0LQLPXP RI SSP
JUDLQV86 JDO DQG PD[
LPXP RI SSP JUDLQV86 JDO
6LOLFRQ FRQFHQWUDWLRQ PLQL
PXP RI SSP DQG PD[L
PXP RI SSP
KRXUV RU \HDU
3HU PDQXIDFWXUHU
UHFRPPHQGDWLRQV
&DW (/&
3UHIHUUHG
&DW (/, ZDWHU EDVHG
&DW (/& &DW (/, RU
FRPPHUFLDO FRRODQW WKDW
PHHWV &DW (&
0LQ UHTXLUHPHQWV
$FFHSWDEOH
&DW 6&$ ZDWHU EDVHG
&DW '($& &DW 6&$
FRQYHQWLRQDO FRRODQWV DQG
FRPPHUFLDO H[WHQGHG OLIH
FRRODQWV WKDW GR QRW PHHW
(&
5HTXLUHG 0DLQWHQDQFH FRQWLQXHG
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RRODQW 5HFRPPHQGDWLRQV
7DEOH FRQWG
1HZ &RRODQWV DW YROXPH SHUFHQW GLOXWHG &RRODQWV WKDW DUH SUHGLOXWHG DW WKH FRRODQW PDQXIDFWXUHU PXVW EH GLOXWHG ZLWK ZDWHU WKDW PHHWV 5H
DJHQW ³$670 '´ UHTXLUHPHQWV
0DLQWDLQ WKH LQVHUYLFH FRRODQW DW WKH JLYHQ OLPLWV
)RU DSSURSULDWH PDLQWHQDQFH SURFHGXUHV UHIHU WR WKH GHWDLOV JLYHQ LQ WKLV &KDSWHU )RU DSSOLFDWLRQV WKDW DOORZ WKH XVH RI &DW (/, LQ ZDWHU D
PLQLPXP RI SHUFHQW RI &DW (/, LV UHFRPPHQGHG )RU DSSOLFDWLRQV WKDW DOORZ WKH XVH RI 6&$ DQG ZDWHU D PLQLPXP RI SHUFHQW WR D PD[L
PXP RI SHUFHQW FRQFHQWUDWLRQ RI &DW 6&$ DUH UHFRPPHQGHG
:DWHUEDVHG FRRODQWV DUH QRW DOORZHG IRU XVH LQ HQJLQHV WKDW KDYH 12[ UHGXFWLRQ DIWHUWUHDWPHQW GHYLFHV LQ HQJLQHV WKDW KDYH $$7$& DQG LQ
PDULQH HQJLQHV WKDW KDYH 6:$& :DWHU EDVHG FRRODQWV DUH JO\FROIUHH
7KHUH DUH FXUUHQWO\ QR LQGXVWU\ VWDQGDUGV WR GHILQH WKH TXDOLW\ RI ZDWHUEDVHG FRQYHQWLRQDO FRRODQWV ,Q RUGHU WR FRQWURO WKH TXDOLW\ RI 6&$ DQG
ZDWHU FRRODQWV WKH FRPPHUFLDO 6&$ DGGLWLYH SDFNDJH VKRXOG SDVV $670 ' DQGRU $670 ' ZKHQ WKLV SDFNDJH LV XVHG LQ D JO\FRO
EDVHG FRRODQW 'R QRW XVH D FRPPHUFLDO 6&$ DGGLWLYH SDFNDJH WKDW RQO\ PHHWV WKH $670 ' RU HTXLYDOHQW VSHFLILFDWLRQ ZKHQ XVHG LQ D
JO\FRO EDVHG FRRODQW
7DEOH 6SHFLDO 5HTXLUHPHQWV :DWHU(/, LV UHFRPPHQGHG :DWHU6&$ LV DFFHSWDEOH *O\FROEDVHG
FRRODQWV DUH 127 DOORZHG
&DW HQJLQH PRGHO
)RU IUHH]LQJ SURWHFWLRQ RI í & ) WHPSHUDWXUHV DQG ORZHU FRQVXOW \RXU &DW GHDOHU IRU JXLGDQFH
:KHQ UHIHUULQJ WR WKH 6HUYLFH /LIH LQ WDEOH XVH WKH
LQWHUYDO WKDW RFFXUV ILUVW 7KHVH FRRODQW FKDQJH
LQWHUYDOV DUH RQO\ DFKLHYDEOH ZLWK DQQXDO 6ā2ā6
6HUYLFHV /HYHO FRRODQW VDPSOLQJ DQDO\VLV
5HIHU WR WKH HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO IRU WKH FRUUHFW LQWHUYDO IRU UHSODFHPHQW RI WKH
FRROLQJ V\VWHP ZDWHU WHPSHUDWXUH UHJXODWRU
1RWH )RU HQJLQHV WKDW UHTXLUH D PD[LPXP RI JO\FRO PDNH VXUH WKDW WKH DPRXQW RI DGGLWLYH LQ WKH
ILQDO PL[ LV DSSURSULDWH ([DPSOH RI PL[LQJ D JO\FRO VROXWLRQ LV JLYHQ LQ 7DEOH 7DEOH ([DPSOH RI 0L[LQJ 8S D *O\FRO &RRODQW
7RWDO 9ROXPH RI
WKH &RROLQJ
6\VWHP
*DOORQV
$GG WKH )ROORZLQJ
(/&
&RQFHQWUDWH
(/,
&RQFHQWUDWH
:DWHU
*DOORQV
*DOORQV
*DOORQV
9ROXPHV FDQ DOVR EH LQ OLWHUV DV ORQJ DV DOO WKH YROXPH XQLWV DUH
FRQVLVWHQW
([WHQGHG OLIH FRRODQWV UHTXLUH WKH RQH WLPH
PDLQWHQDQFH DGGLWLRQ RI DQ H[WHQGHU DW FRRODQW
VHUYLFH PLGOLIH )RU FRPPHUFLDO FRRODQWV GR 127
XVH DQ H[WHQGHU ZLWK D FRRODQW XQOHVV WKH H[WHQGHU
KDV EHHQ DSSURYHG E\ WKH FRRODQW PDQXIDFWXUHU IRU
XVH ZLWK WKH FRRODQW 7KH FRRODQW PDQXIDFWXUHU LV
UHVSRQVLEOH WR HQVXUH FRPSDWLELOLW\ DQG DFFHSWDEOH
SHUIRUPDQFH )DLOXUH WR IROORZ WKHVH
UHFRPPHQGDWLRQV FDQ UHVXOW LQ VKRUWHQHG FRROLQJ
V\VWHP FRPSRQHQW OLIH
&RQYHQWLRQDO FRRODQWV UHTXLUH WKH PDLQWHQDQFH
DGGLWLRQ RI 6&$ WKURXJKRXW WKH H[SHFWHG OLIH )RU
FRPPHUFLDO FRRODQWV GR 127 XVH DQ 6&$ XQOHVV
DSSURYHG E\ WKH FRRODQW VXSSOLHU IRU XVH ZLWK WKH
FRRODQW 7KH FRRODQW PDQXIDFWXUHU LV UHVSRQVLEOH WR
HQVXUH FRPSDWLELOLW\ DQG DFFHSWDEOH SHUIRUPDQFH
³$670 '´ DQG ³$670 '´ UHTXLUH FRRODQWV
WKDW DUH SURSHUO\ GRVHG ZLWK 6&$ DQG WKDW DUH LQ D
SURSHUO\ PDLQWDLQHG FRROLQJ V\VWHP LQ QRUPDO VHUYLFH
WR EH VXLWDEOH IRU XVH IRU D PD[LPXP RI \HDU
³$670 '´ DQG \HDUV ³$670 '´ 7KH
VXLWDELOLW\ IRU XVH UHTXLUHPHQW LV WKH GLUHFW
UHVSRQVLELOLW\ RI WKH FRRODQW PDQXIDFWXUHU DQG
6&$ PDQXIDFWXUHU &RQVXOW ZLWK WKH FRRODQW DQGRU
6&$ PDQXIDFWXUHU FRQFHUQLQJ WKH VXLWDELOLW\ RI WKH
SURGXFWV IRU XVH LQ D JLYHQ DSSOLFDWLRQ
&DW '($& GRHV QRW UHTXLUH D WUHDWPHQW ZLWK DQ 6&$
DW WKH LQLWLDO ILOO
$ FRPPHUFLDO KHDY\GXW\ FRRODQWDQWLIUHH]H WKDW
PHHWV WKH ³$670 '´VSHFLILFDWLRQ GRHV QRW
UHTXLUH D WUHDWPHQW ZLWK DQ 6&$ DW WKH LQLWLDO ILOO
$ FRPPHUFLDO KHDY\GXW\ FRRODQWDQWLIUHH]H WKDW RQO\
PHHWV ³$670 '´ :,// UHTXLUH D WUHDWPHQW ZLWK
DQ 6&$ DW WKH LQLWLDO ILOO DQG KDV WR IXOILOO DOO WKH
UHTXLUHPHQWV OLVWHG LQ WKH ³7HFKQLFDO 5HTXLUHPHQWV
IRU &RPPHUFLDO ([WHQGHG /LIH &RRODQWV´ WDEOH 7KH
XVHU DQG WKH FRRODQW PDQXIDFWXUHU DUH UHVSRQVLEOH WR
HQVXUH WKH 6&$ LV FRPSDWLEOH &RPSDWLELOLW\ LV EDVHG
RQ WKH UHFRPPHQGDWLRQV SURYLGHG E\ WKH FRRODQW
PDQXIDFWXUHU DQG 6&$ PDQXIDFWXUHU )RU H[DPSOH
DQ H[WHQGHG OLIH FRRODQW WKDW PHHWV WKH ³$670
'´ VSHFLILFDWLRQ PD\ QRW EH FRPSDWLEOH ZLWK DQ
6&$ GHVLJQHG IRU XVH ZLWK FRQYHQWLRQDO FRRODQWV
7KH FRRODQW PDQXIDFWXUHU LV UHVSRQVLEOH WR SURYLGH
VRXUFHV RI FRPSDWLEOH 6&$V 7KH FRRODQW
PDQXIDFWXUHU DQG 6&$ PDQXIDFWXUHU DUH UHVSRQVLEOH
WR GHPRQVWUDWH D SRVLWLYH LQIOXHQFH RQ UHGXFLQJ
FDYLWDWLRQ FRUURVLRQ LQ DQ RSHUDWLQJ GLHVHO HQJLQH
5HDG WKH ODEHO RU WKH LQVWUXFWLRQV WKDW DUH SURYLGHG E\
WKH PDQXIDFWXUHU RI WKH FRPPHUFLDO KHDY\GXW\
FRRODQWDQWLIUHH]H
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RRODQW 5HFRPPHQGDWLRQV
:KHQ DGGLQJ 6&$ DW LQLWLDO ILOO WR D FRRODQWDQWLIUHH]H
WKDW RQO\ PHHWV ³$670 '´ WKH XVHU DQG WKH
FRRODQW PDQXIDFWXUHU PXVW HQVXUH WKH 6&$ LV
FRPSDWLEOH ZLWK WKH DQWLIUHH]HFRRODQW 7KH DGGLWLRQ
PXVW EH EDVHG RQ WKH UHFRPPHQGDWLRQV SURYLGHG E\
WKH FRRODQW PDQXIDFWXUHU DQG 6&$ PDQXIDFWXUHU
2QH RI WKH WHVW PHWKRGV UHTXLUHG WR EH XVHG WR KHOS
HQVXUH 6&$ FRPSDWLELOLW\ ZLWK WKH DQWLIUHH]HFRRODQW
FRQFHQWUDWH LV ³$670 '´ )ROORZ WKH WHVW
SURFHGXUH XVLQJ WKH DQWLIUHH]HFRRODQW RI LQWHUHVW WR
FRPSDUH WKH 6&$ RI LQWHUHVW ZLWK WKH UHIHUHQFH 6&$
7KH UDWLR RI LQVROXEOH IRU 6&$ WR UHIHUHQFH 6&$ PXVW
EH 7RWDO LQVROXEOH VKRXOG QRW H[FHHG P/ IRU D
6&$ PL[WXUH 7KH 6&$ PDQXIDFWXUHU LV
UHVSRQVLEOH IRU HQVXULQJ WKH 6&$ LV FRPSDWLEOH ZLWK
ZDWHU PHHWLQJ WKH ³&DWHUSLOODU 0LQLPXP $FFHSWDEOH
:DWHU 4XDOLW\ 5HTXLUHPHQWV´ DV IRXQG LQ WKLV 6SHFLDO
3XEOLFDWLRQ DQG LV IRXQG LQ ³$670 '´ 7DEOH
;
7KH FRRODQW PDQXIDFWXUHU DQG WKH 6&$ PDQXIDFWXUHU
DUH UHVSRQVLEOH WR HQVXUH WKDW WKH SURGXFWV ZLOO QRW
FDXVH FRROLQJ V\VWHP KDUP
&DW (/& FDQ EH UHF\FOHG LQWR FRQYHQWLRQDO FRRODQWV
&DW (/& &DW (/, &DW '($& &DW ([WHQGHU DQG
&DW 6&$ DUH DYDLODEOH LQ VHYHUDO FRQWDLQHU VL]HV
7KH DYDLODELOLW\ RI SDUW QXPEHUV ZLOO YDU\ E\ WKH
UHJLRQ &RQVXOW \RXU &DW GHDOHU
,Q VWDWLRQDU\ DQG PDULQH HQJLQH DSSOLFDWLRQV WKDW GR
QRW UHTXLUH SURWHFWLRQ IURP ERLOLQJ RU IUHH]LQJ H[FHSW
DV QRWHG LQ 7DEOH &DW (/, LQ ZDWHU RU 6&$ DQG
ZDWHU DUH DFFHSWDEOH &DWHUSLOODU UHFRPPHQGV D
PLQLPXP RI SHUFHQW FRQFHQWUDWLRQ RI &DW (/,
LQ WKRVH FRROLQJ V\VWHPV XVLQJ &DW (/,
&DWHUSLOODU UHFRPPHQGV D PLQLPXP RI SHUFHQW
WR D PD[LPXP RI SHUFHQW FRQFHQWUDWLRQ RI &DW
6&$ LQ WKRVH FRROLQJ V\VWHPV XVLQJ &DW 6&$
'LVWLOOHG ZDWHU RU GHLRQL]HG ZDWHU LV SUHIHUUHG LQ WKRVH
V\VWHPV ,I GLVWLOOHG RU GHLRQL]HG ZDWHU LV QRW
DYDLODEOH XVH ZDWHU WKDW PHHWV RU H[FHHGV WKH
PLQLPXP DFFHSWDEOH ZDWHU UHTXLUHPHQWV WKDW DUH
OLVWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ ³*HQHUDO &RRODQW
,QIRUPDWLRQ´ DUWLFOH
$IWHU WKH DGGLWLRQ RI ZDWHU DQG SURSHU PL[LQJ WKH
FRQFHQWUDWLRQ RI &DW (/, FDQ EH GHWHUPLQHG XVLQJ
WKH GLJLWDO %UL[ UHIUDFWRPHWHU 5HIHU WR WKH
WRRO RSHUDWLQJ PDQXDO IRU WKDW UHIUDFWRPHWHU IRU PRUH
LQIRUPDWLRQ 7KH FRQFHQWUDWLRQ RI D VDPSOH RI LQXVH
&DW (/, WDNHQ IURP WKH FRROLQJ V\VWHP FDQ DOVR EH
GHWHUPLQHG XVLQJ WKLV UHIUDFWRPHWHU
127,&(
$OO &DW HQJLQHV WKDW DUH HTXLSSHG ZLWK D &DW 12[ 5H
GXFWLRQ 6\VWHP UHTXLUH D PLQLPXP RI SHUFHQW JO\
FRO WR KHOS SUHYHQW FDYLWDWLRQ GDPDJH DQG ERLOLQJ RI
WKH HQJLQH FRRODQW 7KHVH HQJLQHV LQFOXGH 7LHU HQJLQHV
127,&(
'R QRW XVH D FRPPHUFLDO FRRODQWDQWLIUHH]H WKDW RQO\
PHHWV WKH $670 ³'´ RU HTXLYDOHQW VSHFLILFDWLRQ
7KLV W\SH RI FRRODQWDQWLIUHH]H LV PDGH IRU OLJKW GXW\
DXWRPRWLYH DSSOLFDWLRQV
8VH RQO\ WKH FRRODQWDQWLIUHH]H WKDW LV UHFRPPHQGHG
&DWHUSLOODU UHFRPPHQGV D YROXPH SHUFHQW JO\FRO
DQG ZDWHU RI SURSHU TXDOLW\ 7KLV PL[WXUH ZLOO SURYLGH
RSWLPXP KHDY\GXW\ SHUIRUPDQFH DV D FRRODQW
DQWLIUHH]H 6RPH PDULQH HQJLQHV DUH DQ H[FHSWLRQ DV
LQGLFDWHG LQ 7DEOH 0DLQWDLQ D FRQFHQWUDWLRQ OHYHO RI QLWULWHV LQ WKH FRROLQJ
V\VWHP WKDW LV EHWZHHQ SSP JUDLQV86 JDO
DQG SSP JUDLQV86 JDO 6ā2ā6 FRRODQW
DQDO\VLV LV WKH SUHIHUUHG PHWKRG WR FKHFN 6&$
FRQFHQWUDWLRQ $OWHUQDWLYHO\ QLWULWH OHYHOV FDQ EH
WHVWHG ZLWK WKH IROORZLQJ WRROV
& QLWULWH OHYHO WHVW VWULSV (QJOLVK
LQVWUXFWLRQV RQO\ XVH ZLWK JO\FROEDVHG FRRODQWV
VXFK DV &DW '($&
QLWULWH OHYHO WHVW VWULSV (QJOLVK )UHQFK
DQG 6SDQLVK LQVWUXFWLRQV XVH ZLWK JO\FROEDVHG
FRRODQWV VXFK DV &DW '($&
QLWULWH OHYHO WLWUDWLRQ NLW VXEMHFW WR
UHJLRQDO DYDLODELOLW\ XVH RQO\ ZLWK PL[WXUHV RI
ZDWHU DQG 6&$ 1RW IRU XVH ZLWK JO\FROEDVHG
FRRODQWV
)UHTXHQWO\ FKHFN WKH FRQFHQWUDWLRQ RI JO\FRO LQ JO\FRO
EDVHG FRRODQW 8VH D FRRODQWEDWWHU\ WHVWHU 7ZR
SURGXFWV DUH DYDLODEOH IURP &DW GHDOHUV LV
DQ DQDORJXH UHIUDFWRPHWHU WKDW VKRZV WKH IUHH]H
SURWHFWLRQ OHYHO RI WKH FRRODQW LQ ERWK GHJUHHV &HOVLXV
DQG GHJUHHV )DKUHQKHLW LV D GLJLWDO %UL[
UHIUDFWRPHWHU
0DLQWDLQ WKH SURSHU FRQFHQWUDWLRQV RI JO\FRO DQG
DGGLWLYHV LQ WKH FRRODQW /RZHULQJ WKH FRQFHQWUDWLRQ
RI JO\FRO RU DGGLWLYHV ZLOO ORZHU WKH DELOLW\ RI WKH
FRRODQW WR SURWHFW WKH V\VWHP IURP SLWWLQJ IURP
FDYLWDWLRQ IURP HURVLRQ DQG IURP GHSRVLWV
'R QRW WRS RII WKH FRROLQJ V\VWHP ZLWK ZDWHU XQOHVV
WKHUH LV D VSHFLILF QHHG WR DGMXVW WKH ZDWHUJO\FRO
UDWLR &RPSDWLEOH ZDWHUJO\FRO FRRODQW LV
W\SLFDOO\ XVHG DQG UHFRPPHQGHG ZKHQ FRROLQJ
V\VWHP WRS RII LV UHTXLUHG
&OHDQ WKH FRROLQJ V\VWHP IRU WKH IROORZLQJ UHDVRQV
&RQWDPLQDWLRQ RI WKH FRROLQJ V\VWHP
2YHUKHDWLQJ RI WKH HQJLQH
)RDPLQJ RI WKH FRRODQW
&KDQJLQJ IURP FRQYHQWLRQDO KHDY\GXW\ FRRODQW
DQWLIUHH]H WR &DW (/& RU (/& FRRODQW
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH &RRODQW
1RWH $LU SRFNHWV FDQ IRUP LQ WKH FRROLQJ V\VWHP LI
WKH FRROLQJ V\VWHP LV ILOOHG DW D UDWH WKDW LV JUHDWHU
WKDQ / 86 JDO SHU PLQXWH 7KH PD[LPXP
UHFRPPHQGHG FRROLQJ V\VWHP ILOO UDWH IRU VRPH
VPDOOHU HQJLQH PRGHOV ZLOO EH OHVV 5HIHU WR WKH
HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU
H[FHSWLRQV
$IWHU \RX GUDLQ WKH FRROLQJ V\VWHP DQG DIWHU \RX UHILOO
WKH FRROLQJ V\VWHP RSHUDWH WKH HQJLQH 2SHUDWH WKH
HQJLQH ZLWKRXW WKH ILOOHU FDS XQWLO WKH FRRODQW OHYHO
VWDELOL]HV (QVXUH WKDW WKH FRRODQW LV PDLQWDLQHG WR
WKH SURSHU OHYHO
L
([WHQGHG /LIH &RRODQW
60&6 &RGH &DW (/&
&DWHUSLOODU SURYLGHV &DW (/& ([WHQGHG /LIH &RRODQW
IRU XVH LQ WKH IROORZLQJ DSSOLFDWLRQV
+HDY\GXW\ GLHVHO HQJLQHV
$XWRPRWLYH DSSOLFDWLRQV
:KHQ &DW (/& LV FRPSDUHG WR FRQYHQWLRQDO
FRRODQWV WKH &DW (/& DQWLFRUURVLRQ SDFNDJH LV
EDVHG RQ D GLIIHUHQW DGGLWLYH V\VWHP &DW (/& KDV
EHHQ IRUPXODWHG ZLWK WKH FRUUHFW DPRXQWV RI
DGGLWLYHV 6XSHULRU FRUURVLRQ SURWHFWLRQ LV SURYLGHG
IRU DOO PHWDOV WKDW DUH LQ HQJLQH FRROLQJ V\VWHPV
&DW (/& H[WHQGV WKH VHUYLFH OLIH RI WKH FRRODQW WR
VHUYLFH KRXUV RU \HDUV &DW (/& GRHV QRW
UHTXLUH WKH IUHTXHQW DGGLWLRQ RI WKH &DW (/&
([WHQGHU DGGLWLYH $Q ([WHQGHU LV WKH RQO\ DGGLWLRQDO
PDLQWHQDQFH WKDW LV QHHGHG DW VHUYLFH KRXUV RU
RQH KDOI RI WKH &DW (/& VHUYLFH OLIH
&DW (/& LV DYDLODEOH LQ D SUHPL[HG FRROLQJ
VROXWLRQ ZLWK GLVWLOOHG ZDWHU 7KH SUHPL[HG &DW (/&
SURYLGHV IUHH]H SURWHFWLRQ WR í & í ) 7KH
SUHPL[HG &DW (/& LV UHFRPPHQGHG IRU WKH LQLWLDO ILOO
RI WKH FRROLQJ V\VWHP 7KH SUHPL[HG &DW (/& LV DOVR
UHFRPPHQGHG IRU WRSSLQJ RII WKH FRROLQJ V\VWHP
&DW (/& &RQFHQWUDWH LV DOVR DYDLODEOH &DW (/&
&RQFHQWUDWH FDQ EH XVHG WR ORZHU WKH IUHH]LQJ SRLQW
WR í & í ) IRU DUFWLF FRQGLWLRQV
&RQWDLQHUV RI VHYHUDO VL]HV DUH DYDLODEOH 5HIHU WR
WKLV 6SHFLDO 3XEOLFDWLRQ ³&RRODQW 5HFRPPHQGDWLRQV´
DUWLFOH IRU DYDLODEOH TXDQWLWLHV DQG SDUW QXPEHUV
1RWH &DW (/& FDQ EH XVHG LQ PRVW GLHVHO DQG
JDVROLQH 2(0 HQJLQHV &DW (/& PHHWV WKH
SHUIRUPDQFH UHTXLUHPHQWV RI ³$670 '´ DQG
³$670 '´ IRU KHDY\GXW\ ORZ VLOLFDWH DQWLIUHH]H
FRRODQWV &DW (/& DOVR PHHWV WKH SHUIRUPDQFH
UHTXLUHPHQWV RI ³$670 '´ IRU DXWRPRWLYH
DSSOLFDWLRQV
&RPPHUFLDO ([WHQGHG /LIH &RRODQW
127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV
,Q RUGHU WR EH XVHG LQ &DW GLHVHO HQJLQH FRROLQJ
V\VWHPV DW WKH SXEOLVKHG VHUYLFH LQWHUYDOV VHOHFW D
FRPPHUFLDO H[WHQGHG OLIH FRRODQW WKDW PHHWV DOO WKH
UHTXLUHPHQWV JLYHQ LQ 7DEOH LQ WKLV 6SHFLDO
3XEOLFDWLRQ
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH &RRODQW &RROLQJ 6\VWHP 0DLQWHQDQFH
7DEOH 7HFKQLFDO 5HTXLUHPHQWV IRU &RPPHUFLDO ([WHQGHG /LIH &RRODQWV
6SHFLILFDWLRQV
&DW (& DQG ³$670 '´
2UJDQLF $GGLWLYH 7HFKQRORJ\ 2$7 EDVHG RQ D FRPELQDWLRQ RI D PRQR
FDUER[\OLF DFLG DQG D GLFDUER[\OLF DFLG
$GGLWLRQDO 5HTXLUHPHQWV
3KRVSKDWH ERUDWH DQG VLOLFDWH IUHH
0LQLPXP W\SLFDO WRO\OWULD]ROH OHYHO RI SSP IRU QHZ FRRODQWV
0LQLPXP W\SLFDO QLWULWH OHYHO RI SSP LQ QHZ FRRODQWV
0DLQWHQDQFH
1RWH 7KH &DW (& VSHFLILFDWLRQ GHVFULEHV WKH
PLQLPXP UHTXLUHPHQWV IRU H[WHQGHG OLIH FRRODQWV
8VH DQ H[WHQGHU WKDW LV UHFRPPHQGHG E\ WKH (&
FRRODQW VXSSOLHU DW PLGOLIH RI WKH FRRODQW
&RPPHUFLDO FRRODQWV WKDW GR QRW PHHW WKH PLQLPXP
UHTXLUHPHQWV GHILQHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ DUH
QRW DOORZHG IRU XVH LQ &DW HQJLQHV
&RPPHUFLDO H[WHQGHG OLIH FRRODQW XVHG LQ &DW
HQJLQHV PXVW PHHW DOO UHTXLUHPHQWV JLYHQ LQ 7DEOH ,I WKH (/& GRHV PHHW WKH UHTXLUHPHQWV WKH VHUYLFH
LQWHUYDO OLVWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ PD\ QRW EH
XVHG )ROORZ WKH PDLQWHQDQFH JXLGHOLQHV IRU WKH
FRRODQW IURP WKH VXSSOLHU RI WKH FRPPHUFLDO H[WHQGHG
OLIH FRRODQW )ROORZ WKH &DW JXLGHOLQHV IRU WKH TXDOLW\ RI
ZDWHU DQG WKH VSHFLILHG FRRODQW FKDQJH LQWHUYDO
1RWH &RRODQWV PXVW EH WHVWHG DJDLQVW WKH &DW (&
VSHFLILFDWLRQ UHTXLUHPHQWV &RRODQWV WKDW RQO\ FODLP
WR PHHW WKH SHUIRUPDQFH UHTXLUHPHQWV RI WKH &DW
(& VSHFLILFDWLRQ PD\ QRW PHHW DOO WKH PLQLPXP
UHTXLUHPHQWV
,Q RUGHU WR EH PDUNHWHG DV D SURGXFW WKDW PHHWV &DW
(& DOO &DW (& VSHFLILFDWLRQ UHTXLUHPHQWV PXVW
EH PHW 5HTXLUHPHQWV LQFOXGH EXW DUH QRW OLPLWHG WR
WKH IROORZLQJ
3K\VLFDO DQG &KHPLFDO 3URSHUWLHV
&RPSDWLELOLW\ &KDUDFWHULVWLFV
%HQFK 7HVWLQJ
)LHOG 7HVWLQJ
7KH ILHOG WHVW LQFOXGHV WKH XVH RI WKH IROORZLQJ
UHTXLUHPHQWV
5DGLDWRU W\SHV
0LQLPXP ILHOG WHVW GXUDWLRQ
0LQLPXP QXPEHU RI GLHVHO HQJLQHV
&DW GLHVHO HQJLQH PRGHOV RI WKH UHTXLUHG
PLQLPXP SRZHU UDWLQJ
2QH WLPH DGGLWLRQ RI DQ H[WHQGHU DW WKH PLGOLIH RI WKH FRRODQW LQ RUGHU WR
PDLQWDLQ WKH FRRODQW QLWULWH OHYHO EHWZHHQ SSP
L
([WHQGHG /LIH &RRODQW &RROLQJ
6\VWHP 0DLQWHQDQFH
60&6 &RGH 3URSHU $GGLWLRQV WR WKH &DW (/&
([WHQGHG /LIH &RRODQW
127,&(
8VH RQO\ &DW SURGXFWV RU FRPPHUFLDO SURGXFWV WKDW
KDYH SDVVHG &DW (& VSHFLILFDWLRQ IRU SUHPL[HG RU
FRQFHQWUDWHG FRRODQWV
8VH RQO\ &DW (/& ([WHQGHU ZLWK &DW (/&
'R 127 XVH FRQYHQWLRQDO 6&$ ZLWK &DW (/& 0L[LQJ
&DW (/& ZLWK FRQYHQWLRQDO FRRODQWV DQGRU FRQYHQ
WLRQDO 6&$ UHGXFHV WKH &DW (/& VHUYLFH OLIH
'R 127 PL[ EUDQGV RU W\SHV RI FRRODQW 'R 127 PL[
EUDQGV RU W\SHV RI 6&$ DQGRU EUDQGV RU W\SHV RI H[
WHQGHUV 'LIIHUHQW EUDQGV RU W\SHV PD\ XVH GLIIHUHQW
DGGLWLYH SDFNDJHV WR PHHW WKH FRROLQJ V\VWHP UHTXLUH
PHQWV 'LIIHUHQW EUDQGV RU W\SHV PD\ QRW EH
FRPSDWLEOH
)DLOXUH WR IROORZ WKH UHFRPPHQGDWLRQV FDQ UHGXFH
FRROLQJ V\VWHP FRPSRQHQW OLIH XQOHVV DSSURSULDWH
FRUUHFWLYH DFWLRQ LV SHUIRUPHG
7HVW WKH JO\FRO FRQFHQWUDWLRQ LQ WKH FRRODQW DQG WHVW
WKH QLWULWH FRQFHQWUDWLRQ LQ WKH FRRODQW )ROORZ WKH
PDLQWHQDQFH LQIRUPDWLRQ SURYLGHG LQ WKLV 6SHFLDO
3XEOLFDWLRQ ³&RRODQW DQG *HQHUDO 0DLQWHQDQFH
5HFRPPHQGDWLRQV´ VHFWLRQ
'XULQJ GDLO\ PDLQWHQDQFH XVH WKH SUHPL[HG &DW
(/& DV D FRROLQJ V\VWHP WRSRII 7KLV WRSRII ZLOO EULQJ
WKH FRRODQW XS WR WKH SURSHU OHYHO 8VH &DW (/&
&RQFHQWUDWH WR UHVWRUH WKH SURSHU JO\FRO
FRQFHQWUDWLRQ LQ WKH FRRODQW V\VWHP 7KLV DGGLWLRQ
VKRXOG EH GRQH EHIRUH WKH HQJLQH LV H[SRVHG WR
IUHH]LQJ WHPSHUDWXUHV 'R QRW XVH D FRQYHQWLRQDO
FRRODQW WR WRSRII D FRROLQJ V\VWHP WKDW LV ILOOHG ZLWK
&DW (/&
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH &RRODQW &RROLQJ 6\VWHP 0DLQWHQDQFH
'R QRW XVH D FRQYHQWLRQDO FRRODQW WR WRSRII D FRROLQJ
V\VWHP WKDW LV ILOOHG ZLWK &DW (/&
&DW (/& ([WHQGHU
&DW (/& ([WHQGHU LV DGGHG WR WKH FRROLQJ V\VWHP
KDOIZD\ WKURXJK WKH &DW (/& RU &DW (/, VHUYLFH OLIH
7UHDW WKH FRROLQJ V\VWHP ZLWK &DW (/& ([WHQGHU DW
KRXUV RU RQH KDOI RI WKH FRRODQW VHUYLFH OLIH
5HIHU WR \RXU PDFKLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO IRU H[FHSWLRQV 5HIHU WR WKH ³3DUW 1XPEHU RI
&RRODQW´ WDEOH LQ WKLV 6SHFLDO 3XEOLFDWLRQ ³&RRODQW
5HFRPPHQGDWLRQV´ DUWLFOH IRU DYDLODEOH TXDQWLWLHV DQG
SDUW QXPEHUV
8VH WKH IRUPXOD LQ 7DEOH WR GHWHUPLQH WKH SURSHU
DPRXQW RI &DW (/& ([WHQGHU IRU \RXU FRROLQJ
V\VWHP 5HIHU WR 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
³5HILOO &DSDFLWLHV DQG 5HFRPPHQGDWLRQV´ LQ RUGHU WR
GHWHUPLQH WKH FDSDFLW\ RI WKH FRROLQJ V\VWHP
7DEOH )RUPXOD )RU $GGLQJ &DW (/& ([WHQGHU 7R &DW (/&
9 î ;
9 LV WKH WRWDO FDSDFLW\ RI WKH FRROLQJ V\VWHP
; LV WKH DPRXQW RI &DW (/& ([WHQGHU WKDW LV UHTXLUHG
7DEOH LV DQ H[DPSOH IRU XVLQJ WKH IRUPXOD WKDW LV LQ
7DEOH 7KLV H[DPSOH LV EDVHG RQ WKH FDSDFLW\ RI D
'5 7UDFN7\SH 7UDFWRU ZLWK D FRROLQJ V\VWHP
FDSDFLW\ RI / 86 JDO 7DEOH ([DPSOH 2I 7KH (TXDWLRQ )RU $GGLQJ &DW (/& ([WHQGHU 7R
&DW (/&
7RWDO 9ROXPH RI WKH
&RROLQJ 6\VWHP 9
/ 86 JDO
0XOWLSOLFDWLRQ
)DFWRU
î $PRXQW RI &DW (/&
([WHQGHU WKDW LV 5H
TXLUHG ;
/ 86 JDO
$IWHU WKH FRROLQJ V\VWHP LV GUDLQHG DQG WKHQ UHILOOHG
RSHUDWH WKH HQJLQH ZKLOH WKH FRROLQJ V\VWHP ILOOHU FDS
LV UHPRYHG 2SHUDWH WKH HQJLQH XQWLO WKH FRRODQW OHYHO
UHDFKHV WKH QRUPDO RSHUDWLQJ WHPSHUDWXUH DQG XQWLO
WKH FRRODQW OHYHO VWDELOL]HV $V QHHGHG DGG WKH
FRRODQW PL[WXUH LQ RUGHU WR ILOO WKH V\VWHP WR WKH SURSHU
OHYHO
5HF\FOLQJ &DW (/&
&DW (/& FDQ EH UHF\FOHG LQWR FRQYHQWLRQDO FRRODQWV
7KH GUDLQHG FRRODQW PL[WXUH FDQ EH GLVWLOOHG LQ RUGHU
WR UHPRYH WKH HWK\OHQH JO\FRO DQG WKH ZDWHU 7KH
HWK\OHQH JO\FRO DQG WKH ZDWHU FDQ EH UHXVHG 7KH
GLVWLOOHG PDWHULDO GRHV QRW FRQWDLQ WKH DGGLWLYHV WKDW
DUH UHTXLUHG DV HLWKHU &DW (/& RU &DW '($&
&RQVXOW \RXU &DW GHDOHU IRU PRUH LQIRUPDWLRQ
5HF\FOHG FRRODQWV VKRXOG PHHW WKH PRVW FXUUHQW
UHYLVLRQ OHYHO RI ³$670 '´
&KDQJLQJ WR &DW (/&
7R FKDQJH IURP KHDY\GXW\ FRRODQWDQWLIUHH]H WR WKH
&DW (/& SHUIRUP WKH IROORZLQJ VWHSV
127,&(
&DUH PXVW EH WDNHQ WR HQVXUH WKDW IOXLGV DUH FRQ
WDLQHG GXULQJ SHUIRUPDQFH RI LQVSHFWLRQ PDLQWH
QDQFH WHVWLQJ DGMXVWLQJ DQG UHSDLU RI WKH SURGXFW %H
SUHSDUHG WR FROOHFW WKH IOXLG ZLWK VXLWDEOH FRQWDLQHUV
EHIRUH RSHQLQJ DQ\ FRPSDUWPHQW RU GLVDVVHPEOLQJ
DQ\ FRPSRQHQW FRQWDLQLQJ IOXLGV
5HIHU WR 6SHFLDO 3XEOLFDWLRQ 1(1* ³&DWHUSLOODU
'HDOHU 6HUYLFH 7RRO &DWDORJ´ DQG WR 6SHFLDO 3XEOLFD
WLRQ 3(&- ³&DW 6KRS 6XSSOLHV DQG 7RROV´ IRU
WRROV DQG VXSSOLHV VXLWDEOH WR FROOHFW DQG FRQWDLQ IOX
LGV RQ &DW SURGXFWV
'LVSRVH RI DOO IOXLGV DFFRUGLQJ WR DSSOLFDEOH UHJXOD
WLRQV DQG PDQGDWHV
'UDLQ WKH FRRODQW LQWR D VXLWDEOH FRQWDLQHU
127,&(
:KHQ XVLQJ &DW
(/& GR QRW XVH FRQYHQWLRQDO
6&$V RU LI HTXLSSHG 6&$ PDLQWHQDQFH HOHPHQWV ,Q
RUGHU WR DYRLG 6&$ FRQWDPLQDWLRQ RI DQ (/& V\VWHP
UHPRYH WKH 6&$ HOHPHQW EDVH DQG SOXJ RII RU E\SDVV
WKH FRRODQW OLQHV
&DW (/& &RROLQJ 6\VWHP &OHDQLQJ
1RWH ,I WKH FRROLQJ V\VWHP LV DOUHDG\ XVLQJ &DW (/&
FOHDQLQJ DJHQWV DUH QRW UHTXLUHG DW WKH VSHFLILHG
FRRODQW FKDQJH LQWHUYDO &OHDQLQJ DJHQWV DUH RQO\
UHTXLUHG LI WKH V\VWHP KDV EHHQ FRQWDPLQDWHG E\ WKH
DGGLWLRQ RI VRPH RWKHU W\SH RI FRRODQW RU E\ FRROLQJ
V\VWHP GDPDJH
&OHDQ ZDWHU LV WKH RQO\ FOHDQLQJ DJHQW WKDW LV UHTXLUHG
ZKHQ &DW (/& LV GUDLQHG IURP D SURSHUO\ PDLQWDLQHG
FRROLQJ V\VWHP
'LVSRVH RI WKH FRRODQW DFFRUGLQJ WR ORFDO
UHJXODWLRQV
,I HTXLSSHG UHPRYH WKH HPSW\ 6&$ PDLQWHQDQFH
HOHPHQW DQG UHPRYH WKH HOHPHQW EDVH 3OXJ WKH
FRRODQW OLQHV RU E\SDVV WKH FRRODQW OLQHV
127,&(
'R QRW OHDYH DQ HPSW\ 6&$ PDLQWHQDQFH HOHPHQW RQ
D V\VWHP WKDW LV ILOOHG ZLWK &DW (/&
7KH HOHPHQW KRXVLQJ PD\ FRUURGH DQG OHDN FDXVLQJ
DQ HQJLQH IDLOXUH
5HPRYH WKH 6&$ HOHPHQW EDVH DQG SOXJ RII RU E\
SDVV WKH FRRODQW OLQHV
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH &RRODQW &RROLQJ 6\VWHP 0DLQWHQDQFH
)OXVK WKH V\VWHP ZLWK FOHDQ ZDWHU LQ RUGHU WR
UHPRYH DQ\ GHEULV
8VH &DW 4XLFN )OXVK &RROLQJ 6\VWHP &OHDQHU IRU
FRROLQJ V\VWHPV LQ RUGHU WR FOHDQ WKH V\VWHP &DW
4XLFN )OXVK &RROLQJ 6\VWHP &OHDQHU LV DYDLODEOH
LQ YDULRXV VL]HV 3DUW QXPEHUV DUH & /
86 JDO WKURXJK & /
86 JDO )ROORZ WKH LQVWUXFWLRQV RQ WKH ODEHO
XVLQJ D FRQFHQWUDWLRQ RI FOHDQHU LQ ZDWHU
'UDLQ WKH FOHDQHU LQWR D VXLWDEOH FRQWDLQHU )OXVK
WKH FRROLQJ V\VWHP ZLWK FOHDQ ZDWHU
1RWH 'HSRVLWV WKDW UHPDLQ LQ WKH V\VWHP PD\ EH
ORRVHQHG DQG UHPRYHG E\ WKH &DW (/&
,Q V\VWHPV ZLWK KHDY\ GHSRVLWV GLVFRQQHFWLQJ WKH
KRVHV PD\ EH QHFHVVDU\ &OHDQ WKH GHSRVLWV DQG
GHEULV IURP WKH KRVHV DQG WKH ILWWLQJV ,QVWDOO WKH
KRVHV DQG WLJKWHQ WKH KRVH ILWWLQJV 5HIHU WR
6SHFLILFDWLRQV 6(15 ³7RUTXH 6SHFLILFDWLRQV´
IRU WKH SURSHU WRUTXHV 3LSH WKUHDGV PD\ DOVR QHHG
WR EH FOHDQHG DQG VHDOHG 6HDO WKH WKUHDGV ZLWK
3 3LSH 6HDODQW
1RWH 5HSODFH KRVHV WKDW DUH FUDFNHG VRIW RU WKDW
KDYH RWKHU VLJQV RI GDPDJH 7LJKWHQ DOO KRVH FODPSV
DQG ILWWLQJV
)LOO WKH FRROLQJ V\VWHP ZLWK FOHDQ ZDWHU DQG
RSHUDWH WKH HQJLQH XQWLO WKH HQJLQH LV ZDUPHG WR
& WR & ) WR ) 127,&(
,PSURSHU RU LQFRPSOHWH ULQVLQJ RI WKH FRROLQJ V\VWHP
FDQ UHVXOW LQ GDPDJH WR FRSSHU DQG RWKHU PHWDO
FRPSRQHQWV
7R DYRLG GDPDJH WR WKH FRROLQJ V\VWHP PDNH VXUH WR
FRPSOHWHO\ IOXVK WKH FRROLQJ V\VWHP ZLWK FOHDU ZDWHU
&RQWLQXH WR IOXVK WKH V\VWHP XQWLO DOO VLJQV RI WKH
FOHDQLQJ DJHQW DUH JRQH
'UDLQ WKH FRROLQJ V\VWHP LQWR D VXLWDEOH FRQWDLQHU
DQG IOXVK WKH FRROLQJ V\VWHP ZLWK FOHDQ ZDWHU
127,&(
7KH FRROLQJ V\VWHP FOHDQHU PXVW EH WKRURXJKO\
IOXVKHG IURP WKH FRROLQJ V\VWHP &RROLQJ V\VWHP
FOHDQHU WKDW LV OHIW LQ WKH V\VWHP ZLOO FRQWDPLQDWH WKH
FRRODQW 7KH FOHDQHU PD\ DOVR FRUURGH WKH FRROLQJ
V\VWHP
5HSHDW 6WHSV DQG XQWLO WKH V\VWHP LV FOHDQ
)LOO WKH FRROLQJ V\VWHP ZLWK WKH &DW (/&
2SHUDWH WKH HQJLQH XQWLO WKH HQJLQH LV ZDUPHG
:KLOH WKH HQJLQH LV UXQQLQJ LQVSHFW WKH HQJLQH IRU
OHDNV 7LJKWHQ KRVH FODPSV DQG FRQQHFWLRQV LQ
RUGHU WR VWRS DQ\ OHDNV
$WWDFK WKH 6SHFLDO 3XEOLFDWLRQ 30(3
³/DEHO´ WR WKH FRROLQJ V\VWHP ILOOHU IRU WKH HQJLQH LQ
RUGHU WR LQGLFDWH WKH XVH RI &DW (/&
1RWH &OHDQ ZDWHU LV WKH RQO\ IOXVKLQJ DJHQW WKDW LV
UHTXLUHG ZKHQ &DW (/& LV GUDLQHG IURP D SURSHUO\
PDLQWDLQHG FRROLQJ V\VWHP
&DW (/& &RROLQJ 6\VWHP
&RQWDPLQDWLRQ
127,&(
0L[LQJ &DW (/& ZLWK RWKHU SURGXFWV UHGXFHV WKH HI
IHFWLYHQHVV RI WKH &DW (/& DQG VKRUWHQV WKH &DW
(/& VHUYLFH OLIH 8VH RQO\ &DW SURGXFWV RU FRPPHU
FLDO SURGXFWV WKDW KDYH SDVVHG WKH &DW (& VSHFLIL
FDWLRQ IRU SUHPL[HG RU FRQFHQWUDWH FRRODQWV 8VH RQO\
&DW (/& ([WHQGHU ZLWK &DW (/& 'R 127 PL[
EUDQGV RU W\SHV RI FRRODQWV )DLOXUH WR IROORZ WKHVH
UHFRPPHQGDWLRQV FDQ UHVXOW LQ VKRUWHQHG FRROLQJ
V\VWHP FRPSRQHQW OLIH
&DW (/& FRROLQJ V\VWHPV FDQ ZLWKVWDQG
FRQWDPLQDWLRQ WR D PD[LPXP RI SHUFHQW RI
FRQYHQWLRQDO KHDY\GXW\ FRRODQWDQWLIUHH]H DQGRU
6&$ 7KH DGYDQWDJHV RI &DW (/& DUH UHGXFHG ,I WKH
FRQWDPLQDWLRQ H[FHHGV SHUFHQW RI WKH WRWDO V\VWHP
FDSDFLW\ SHUIRUP 21( RI WKH IROORZLQJ SURFHGXUHV
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH ,QKLELWRU (/,
,I WKH FRROLQJ V\VWHP FRQWDPLQDWLRQ LV FDXVHG E\
FRROLQJ V\VWHP GDPDJH IROORZ WKH SURFHGXUHV
XQGHU WKH ³&KDQJLQJ WR &DW (/&´ KHDGLQJ $OVR
IROORZ WKH SURFHGXUHV LI WKH HQJLQH KDV EHHQ
RSHUDWHG VLQFH EHLQJ FRQWDPLQDWHG ZLWK PRUH WKDQ
SHUFHQW FRQYHQWLRQDO KHDY\GXW\ FRRODQW
DQWLIUHH]H DQGRU 6&$ &HUWDLQ W\SHV RI FRROLQJ
V\VWHP FRQWDPLQDWLRQ PD\ UHTXLUH GLVDVVHPEO\ RI
WKH FRROLQJ V\VWHP DQG PDQXDO FOHDQLQJ RI V\VWHP
FRPSRQHQWV
,I WKH FRROLQJ V\VWHP LV FRQWDPLQDWHG ZLWK PRUH
WKDQ SHUFHQW FRQYHQWLRQDO KHDY\GXW\ FRRODQW
DQWLIUHH]H DQGRU 6&$ EXW WKH HQJLQH KDV QRW
EHHQ RSHUDWHG GUDLQ WKH FRROLQJ V\VWHP LQWR D
VXLWDEOH FRQWDLQHU 'LVSRVH RI WKH FRRODQW
DFFRUGLQJ WR ORFDO UHJXODWLRQV 7KRURXJKO\ IOXVK
WKH V\VWHP ZLWK FOHDQ ZDWHU )LOO WKH V\VWHP ZLWK
WKH &DW (/& 0DLQWDLQ WKH V\VWHP DV D FRQYHQWLRQDO '($&
'LHVHO (QJLQH $QWLIUHH]H&RRODQW RU RWKHU
FRQYHQWLRQDO FRRODQW 6XEPLW D FRRODQW VDPSOH IRU
/HYHO 6ā2ā6 &RRODQW $QDO\VLV WR GHWHUPLQH WKH
FRRODQW FRQGLWLRQ 0DLQWDLQ D WR SHUFHQW 6&$
FRQFHQWUDWLRQ LQ WKH FRRODQW &KDQJH WKH FRRODQW DW
WKH LQWHUYDO WKDW LV UHFRPPHQGHG IRU &DW '($& RU
DW WKH LQWHUYDO WKDW LV UHFRPPHQGHG IRU WKH
FRQYHQWLRQDO FRPPHUFLDO FRRODQWV
L
([WHQGHG /LIH ,QKLELWRU (/,
60&6 &RGH &DW ([WHQGHG /LIH ,QKLELWRU (/, LV ZDWHUEDVHG
FRRODQW WKDW GRHV QRW FRQWDLQ JO\FRO &DW (/, LV IRU
DSSOLFDWLRQV WKDW GR QRW UHTXLUH IUHH]H SURWHFWLRQ
([FHSWLRQV DUH OLVWHG LQ WKLV )DLOXUH WR IROORZ WKHVH
UHFRPPHQGDWLRQV FDQ RU ZLOO UHVXOW LQ IDLOXUHV
&DW (/, LV D FRUURVLRQ LQKLELWRU FRQFHQWUDWH WKDW LV
PL[HG WR DSSUR[LPDWHO\ E\ YROXPH ZLWK ZDWHU
&DW (/, KDV WKH IROORZLQJ FKDUDFWHULVWLFV
%DVHG RQ WKH VDPH RUJDQLF DGGLWLYH WHFKQRORJ\
WKDW LV XVHG LQ &DW ([WHQGHG /LIH &RRODQW (/&
'RHV QRW FRQWDLQ JO\FRO 'HVLJQHG IRU XVH LQ
DSSOLFDWLRQV WKDW GR QRW UHTXLUH IUHH]H SURWHFWLRQ
3URYLGHV VXSHULRU FRUURVLRQ DQG FDYLWDWLRQ
SURWHFWLRQ FRPSDUHG WR 6&$ PL[HG ZLWK ZDWHU
3URYLGHV DQ H[WHQGHG GUDLQ LQWHUYDO RI XS WR \HDUV RU KRXUV 7KH GUDLQ LQWHUYDO PD\ EH
ORQJHU DV GHWHUPLQHG E\ XVLQJ &DW 6ā2ā6 FRRODQW
DQDO\VLV
5HTXLUHV OLWWOH PDLQWHQDQFH FRPSDUHG WR
FRQYHQWLRQDO 6&$ PL[HG ZLWK ZDWHU
&DW (/, FDQ UHSODFH 6&$:DWHU FRRODQW LQ HQJLQH
DSSOLFDWLRQV WKDW GR QRW UHTXLUH IUHH]H SURWHFWLRQ
([FHSWLRQV IRU XVH RI ZDWHUEDVHG (/, RU 6&$
FRRODQWV DUH OLVWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ
³&RRODQW 5HFRPPHQGDWLRQV 6SHFLDO 5HTXLUHPHQWV
7DEOH´
$GGLWLRQDO LQIRUPDWLRQ LV DYDLODEOH IURP \RXU &DW
'HDOHU 5HIHU WR ,QIRUPDWLRQ 5HOHDVH 0HPR
3(/- ³&DW (/, ± 3(5)250$1&( /,.( &DW
(/& )25 $33/,&$7,216 127 5(48,5,1*
)5((=( 3527(&7,21´ 5HIHU WR 7DEOH IRU
LQIRUPDWLRQ DERXW &DW (/,
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
'LHVHO (QJLQH $QWLIUHH]H&RRODQW
7DEOH 3DUW 1XPEHU
&RQWDLQHU 6L]H
9ROXPH RI )LQLVKHG &RRODQW 3URGXFHG
/ 86 JDO
/ 86 JDO
/ 86 JDO
/ 86 JDO
/ 86 JDO
/ 86 JDO
/ 86 JDO
/ 86 JDO
1$&' DQG /$&' RQO\
0L[LQJ &DW (/,
7KH UHFRPPHQGHG ZDWHU IRU PL[LQJ ZLWK &DW (/,
FRQFHQWUDWH LV GLVWLOOHG RU GHLRQL]HG ZDWHU :DWHU
PXVW PHHW UHTXLUHPHQWV RI $670 ³7\SH ,9
5HDJHQW :DWHU 6SHFLILFDWLRQ´ ,I GLVWLOOHG RU GHLRQL]HG
ZDWHU LV QRW DYDLODEOH ZDWHU VKRXOG PHHW WKH
³&DWHUSLOODU 0LQLPXP $FFHSWDEOH :DWHU
5HTXLUHPHQWV´ SURYLGHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ
7R HQVXUH D SURSHU FRQFHQWUDWLRQ WKH SUHIHUUHG
PHWKRG LV WR PL[ &DW (/, FRQFHQWUDWH ZLWK ZDWHU
7KHQ DGG WKH PL[HG FRRODQW WR WKH HQJLQH FRROLQJ
V\VWHP $GG WKH SURSHU DPRXQWV RI ZDWHU DQG &DW
(/, LQWR D FOHDQ FRQWDLQHU DQG PL[ WKRURXJKO\ E\
PDQXDO VWLUULQJ RU PHFKDQLFDO DJLWDWLRQ
,I WKH SUHIHUUHG PHWKRG FDQQRW EH SHUIRUPHG D &DW
(/, PL[WXUH FDQ EH PDGH E\ DGGLQJ &DW (/,
FRQFHQWUDWH GLUHFWO\ LQWR HQJLQH FRROLQJ V\VWHP $GG
JRRG TXDOLW\ ZDWHU XQWLO WKH GLOXWLRQ OHYHO LV
DSSUR[LPDWHO\ $GHTXDWH PL[LQJ LV DWWDLQHG E\
RSHUDWLQJ WKH HQJLQH IRU DW OHDVW PLQXWHV
$SSURSULDWH PL[LQJ UDWHV IRU DYDLODEOH (/, FRQWDLQHU
VL]HV DUH SURYLGHG LQ 7DEOH $IWHU WKH DGGLWLRQ RI ZDWHU DQG SURSHU PL[LQJ WKH
FRQFHQWUDWLRQ RI &DW (/, FDQ EH GHWHUPLQHG XVLQJ
WKH GLJLWDO %UL[ UHIUDFWRPHWHU
&KDQJLQJ WR &DW (/,
)RU FRROLQJ V\VWHPV SUHYLRXVO\ UXQQLQJ &DW (/& RU
DQ H[WHQGHG OLIH FRRODQW WKDW PHHWV &DW (&
UHTXLUHPHQWV GUDLQ WKH FRROLQJ V\VWHP DQG IOXVK ZLWK
ZDWHU 7KHQ UHILOO WKH FRROLQJ V\VWHP ZLWK D PL[WXUH RI
&DW (/, LQ ZDWHU WKDW PHHWV WKH ³&DWHUSLOODU
0LQLPXP $FFHSWDEOH :DWHU 5HTXLUHPHQWV´
)RU FRROLQJ V\VWHPV SUHYLRXVO\ UXQQLQJ D
FRQYHQWLRQDO KHDY\GXW\ FRRODQW RU D ZDWHU6&$
PL[WXUH IROORZ WKH VWHSV OLVWHG LQ WKLV 6SHFLDO
3XEOLFDWLRQ ³&KDQJLQJ WR &DW (/&´ 7KHQ UHILOO WKH
FRROLQJ V\VWHP ZLWK D PL[WXUH RI &DW (/, LQ
ZDWHU WKDW PHHWV WKH ³&DWHUSLOODU 0LQLPXP $FFHSWDEOH
:DWHU 5HTXLUHPHQWV´
&DW (/, 0DLQWHQDQFH
0DLQWHQDQFH RI &DW (/, LV VLPLODU WR &DW (/& $
FRRODQW VDPSOH VKRXOG EH VXEPLWWHG IRU 6ā2ā6 /HYHO
&RRODQW $QDO\VLV DIWHU WKH ILUVW KRXUV RI
RSHUDWLRQ DQG WKHQ DQQXDOO\ WKHUHDIWHU
&DW (/& ([WHQGHU VKRXOG EH DGGHG DW WKH PLGSRLQW
RI VHUYLFH OLIH W\SLFDOO\ KRXUV RU DV
UHFRPPHQGHG E\ 6ā2ā6 &RRODQW $QDO\VLV UHVXOWV
$QDO\VLV DQG LQWHUSUHWDWLRQ RI &DW (/, 6ā2ā6 UHVXOWV
LV VLPLODU WR WKH DQDO\VLV DQG LQWHUSUHWDWLRQ RI &DW
(/& 7KHUH ZLOO EH QR JO\FRO DQG JO\FRO R[LGDWLRQ
SURGXFWV ZKLFK GR QRW DSSO\ WR &DW (/,
7KH FRQFHQWUDWLRQ RI D VDPSOH RI LQXVH &DW (/,
WDNHQ IURP WKH FRROLQJ V\VWHP FDQ DOVR EH
GHWHUPLQHG XVLQJ WKH GLJLWDO %UL[
5HIUDFWRPHWHU
7KH FRQFHQWUDWLRQ RI &DW (/, FDQ EH GHWHUPLQHG
XVLQJ D UHIUDFWRPHWHU VXFK DV &DW SDUW QXPEHU 1RWH &OHDQ ZDWHU LV WKH RQO\ IOXVKLQJ DJHQW WKDW LV
UHTXLUHG ZKHQ &DW (/, LV GUDLQHG IURP D SURSHUO\
PDLQWDLQHG FRROLQJ V\VWHP
0L[LQJ &DW (/, DQG &DW (/&
6LQFH &DW (/, DQG &DW (/& DUH EDVHG RQ WKH VDPH
FRUURVLRQ LQKLELWRU WHFKQRORJ\ &DW (/, FDQ EH PL[HG
ZLWK &DW (/& 0L[LQJ PD\ EH GHVLUHG ZKHQ RQO\ ORZ
OHYHO RI IUHH]H SURWHFWLRQ LV UHTXLUHG &RQVXOW \RXU
ORFDO &DW GHDOHU WR HQVXUH SURSHU PL[LQJ RI WKH
SURGXFWV WR SURYLGH DGHTXDWH IUHH]H SURWHFWLRQ DQG
FRUURVLRQ SURWHFWLRQ
L
'LHVHO (QJLQH $QWLIUHH]H
&RRODQW
'($&
60&6 &RGH )ROORZ WKH PDLQWHQDQFH LQIRUPDWLRQ SURYLGHG LQ WKLV
6SHFLDO 3XEOLFDWLRQ ³&RRODQW DQG *HQHUDO
0DLQWHQDQFH 5HFRPPHQGDWLRQV´VHFWLRQ
&DW UHFRPPHQGV XVLQJ &DW '($& 'LHVHO (QJLQH
$QWLIUHH]H&RRODQW IRU FRROLQJ V\VWHPV WKDW UHTXLUH D
KLJK SHUIRUPDQFH FRQYHQWLRQDO KHDY\GXW\ FRRODQW
DQWLIUHH]H &DW '($& LV DONDOLQH VLQJOHSKDVH
HWK\OHQH JO\FRO W\SH DQWLIUHH]H WKDW FRQWDLQV FRUURVLRQ
LQKLELWRUV DQG DQWLIRDP DJHQWV
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH
&DW '($& LV IRUPXODWHG ZLWK WKH FRUUHFW DPRXQW RI
&DW 6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH 'R QRW
XVH &DW 6&$ DW WKH LQLWLDO ILOO ZKHQ &DW '($& LV XVHG
DW WKH UHFRPPHQGHG SHUFHQW E\ YROXPH JO\FRO RU
KLJKHU FRQFHQWUDWLRQ ZLWK UHFRPPHQGHG ZDWHU
1RWH 'R QRW H[FHHG D SHUFHQW PD[LPXP
FRQFHQWUDWLRQ RI 6&$ 0DLQWDLQ D WR SHUFHQW 6&$
FRQFHQWUDWLRQ LQ WKH FRRODQW
L
&RQWDLQHUV RI VHYHUDO VL]HV DUH DYDLODEOH &RQVXOW
\RXU &DW GHDOHU IRU WKH SDUW QXPEHUV
,I FRQFHQWUDWHG &DW '($& LV XVHG &DWHUSLOODU
UHFRPPHQGV PL[LQJ WKH FRQFHQWUDWH ZLWK GLVWLOOHG
ZDWHU RU ZLWK GHLRQL]HG ZDWHU ,I GLVWLOOHG ZDWHU RU
GHLRQL]HG ZDWHU LV QRW DYDLODEOH XVH ZDWHU ZKLFK KDV
WKH UHTXLUHG SURSHUWLHV )RU WKH ZDWHU SURSHUWLHV VHH
WKLV SXEOLFDWLRQ ³*HQHUDO &RRODQW ,QIRUPDWLRQ´
1RWH 0L[ WKH FRQFHQWUDWHG &DW '($& DQG ZDWHU
WKRURXJKO\ SULRU WR ILOOLQJ WKH FRROLQJ V\VWHP
6&$ LV DGGHG WR FRROLQJ V\VWHPV WKDW XVH
FRQYHQWLRQDO FRRODQWV IRU RQH RI WKUHH UHDVRQV
WR SUHFKDUJH D QHZ FRQYHQWLRQDO FRRODQW WKDW LV QRW
IXOO\ )RUPXODWHG &DW '($& LV IXOO\ IRUPXODWHG
DQG GRHV QRW UHTXLUH 6&$
WR SURYLGH FRUURVLRQ SURWHFWLRQ LQ ZDWHU6&$
FRROLQJ V\VWHPV
WR UHFKDUJH DQ LQ VHUYLFH FRQYHQWLRQDO FRRODQW RQ D
PDLQWHQDQFH EDVLV WR PDLQWDLQ SURSHU LQKLELWRU
OHYHOV
&RQYHQWLRQDO FRRODQWV W\SLFDOO\ UHTXLUH 6&$ DGGLWLRQV
DW DSSUR[LPDWHO\ VHUYLFH KRXUV 7KH XVH RI
6&$ KHOSV WR SUHYHQW WKH IROORZLQJ FRQGLWLRQV IURP
RFFXUULQJ
&RUURVLRQ
)RUPDWLRQ RI PLQHUDO GHSRVLWV
&DYLWDWLRQ HURVLRQ RI WKH F\OLQGHU OLQHUV
)RDPLQJ RI WKH FRRODQW
&DW '($& 'LHVHO (QJLQH $QWLIUHH]H&RRODQW LV
IRUPXODWHG ZLWK WKH FRUUHFW OHYHO RI &DW 6&$ :KHQ
WKH FRROLQJ V\VWHP LV LQLWLDOO\ ILOOHG ZLWK &DW '($&
DGGLQJ PRUH &DW 6&$ LV QRW QHFHVVDU\
&DW '($& 'LHVHO (QJLQH $QWLIUHH]H&RRODQW LV
IRUPXODWHG ZLWK WKH FRUUHFW OHYHO RI &DW 6&$ :KHQ
WKH FRROLQJ V\VWHP LV LQLWLDOO\ ILOOHG ZLWK &DW '($&
DGGLQJ PRUH &DW 6&$ LV QRW QHFHVVDU\ 7R HQVXUH
WKDW WKH FRUUHFW DPRXQW RI &DW 6&$ LV LQ WKH FRROLQJ
V\VWHP WKH WHVW WKH FRQFHQWUDWLRQ RQ D VFKHGXOHG
EDVLV 5HIHU WR WKH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO ³0DLQWHQDQFH ,QWHUYDO 6FKHGXOH´ RI WKH
HQJLQH
&RQWDLQHUV RI &DW 6&$ DUH DYDLODEOH LQ VHYHUDO
VL]HV 5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³&RQYHQWLRQDO
&RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH´
DUWLFOH IRU DYDLODEOH TXDQWLWLHV DQG SDUW QXPEHUV
&RQYHQWLRQDO &RRODQW
$QWLIUHH]H &RROLQJ 6\VWHP
0DLQWHQDQFH
60&6 &RGH 127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV
127,&(
8VH 2QO\ $SSURYHG 6&$V &RQYHQWLRQDO FRRODQWV
UHTXLUH WKH PDLQWHQDQFH DGGLWLRQ RI 6&$ WKURXJKRXW
WKHLU H[SHFWHG OLIH 'R 127 XVH DQ 6&$ ZLWK D FRRO
DQW XQOHVV VSHFLILFDOO\ DSSURYHG E\ WKH FRRODQW VXSSOL
HU IRU XVH ZLWK WKHLU FRRODQW ,W LV WKH UHVSRQVLELOLW\ RI
WKH FRRODQW PDQXIDFWXUHU WR HQVXUH FRPSDWLELOLW\ DQG
DFFHSWDEOH SHUIRUPDQFH
)DLOXUH WR IROORZ WKH UHFRPPHQGDWLRQV FDQ UHVXOW LQ
VKRUWHQHG FRROLQJ V\VWHP FRPSRQHQW OLIH
&DW 6&$ LV FRPSDWLEOH ZLWK &DW '($& ,I \RX XVH
QRQ&DW EUDQG FRQYHQWLRQDO FRRODQWV FRQVXOW ZLWK WKH
FRRODQW PDQXIDFWXUHU IRU LQIRUPDWLRQ RQ D FRPSDWLEOH
6&$
127,&(
'R 127 PL[ EUDQGV RU W\SHV RI FRRODQW 'R 127 PL[
EUDQGV RU W\SHV RI 6&$ DQGRU EUDQGV RU W\SHV RI H[
WHQGHUV 'LIIHUHQW EUDQGV RU W\SHV PD\ XVH GLIIHUHQW
DGGLWLYH SDFNDJHV WR PHHW WKH FRROLQJ V\VWHP UHTXLUH
PHQWV 'LIIHUHQW EUDQGV RU W\SHV PD\ QRW EH
FRPSDWLEOH
)DLOXUH WR IROORZ WKH UHFRPPHQGDWLRQV FDQ UHGXFH
FRROLQJ V\VWHP FRPSRQHQW OLIH XQOHVV DSSURSULDWH
FRUUHFWLYH DFWLRQ LV SHUIRUPHG
,I QRQ&DW FRQYHQWLRQDO FRRODQWV WKDW PHHW &DW
PLQLPXP SXEOLVKHG UHTXLUHPHQWV DUH XVHG FRQILUP
ZLWK WKH FRRODQW PDQXIDFWXUHU EHIRUH XVLQJ &DW 6&$
WKDW &DW 6&$ LV DFFHSWDEOH IRU XVH ZLWK WKH FRRODQW
'R QRW H[FHHG WKH SHUFHQW PD[LPXP FRQFHQWUDWLRQ
&KHFN WKH FRQFHQWUDWLRQ RI 6&$ ZLWK D 6&$ WHVW NLW
RU FKHFN WKH FRQFHQWUDWLRQ RI 6&$ ZLWK &DW 6ā2ā6
FRRODQW DQDO\VLV
&DW HQJLQH FRROLQJ V\VWHPV VKRXOG EH WHVWHG DW KRXU LQWHUYDOV RU DW WKH 30 /HYHO LQWHUYDOV IRU WKH
FRQFHQWUDWLRQ RI 6&$ 6XSSOHPHQWDO &RRODQW
$GGLWLYH 6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH
1RWH $FFHSWDEOH FRQYHQWLRQDO KHDY\GXW\ FRRODQW
DQWLIUHH]H RI DOO W\SHV 5(48,5( SHULRGLF DGGLWLRQV RI
6&$
)ROORZ WKH PDLQWHQDQFH LQIRUPDWLRQ SURYLGHG LQ WKLV
6SHFLDO 3XEOLFDWLRQ ³&RRODQW DQG *HQHUDO
0DLQWHQDQFH 5HFRPPHQGDWLRQV´ VHFWLRQ
1RWH 6SHFLILF HQJLQH DSSOLFDWLRQV PD\ UHTXLUH
PDLQWHQDQFH SUDFWLFHV WR EH SHULRGLFDOO\ HYDOXDWHG LQ
RUGHU WR PDLQWDLQ WKH HQJLQH FRROLQJ V\VWHP SURSHUO\
7KH DYDLODELOLW\ RI SDUW QXPEHUV ZLOO YDU\ IURP RQH
UHJLRQ WR DQRWKHU UHJLRQ
'R QRW H[FHHG WKH SHUFHQW PD[LPXP FRQFHQWUDWLRQ
&KHFN WKH FRQFHQWUDWLRQ RI 6&$ ZLWK D 6&$ WHVW NLW
RU FKHFN WKH FRQFHQWUDWLRQ RI 6&$ ZLWK &DW 6ā2ā6
FRRODQW DQDO\VLV
'R QRW XVH WKH PDLQWHQDQFH VSLQRQ HOHPHQW IRU WKH
6&$ DQG WKH OLTXLG IRU WKH 6&$ DW WKH VDPH WLPH
6SLQRQ HOHPHQWV PD\ QRW EH DYDLODEOH IRU DOO
DSSOLFDWLRQV
7DEOH &DW 6&$ 5HTXLUHPHQWV IRU +HDY\'XW\ &RRODQW$QWLIUHH]H
&RROLQJ 6\VWHP &DSDFLW\
,QLWLDO )LOO
KRXUV RU ,QWHUYDOV IRU
30 /HYHO 6SLQRQ (OHPHQW DW KRXUV RU DW ,QWHUYDOV IRU
30 /HYHO 4XDQWLW\ RI
(OHPHQWV
WR / WR 86 JDO
/ IO R]
/ IO R]
WR / WR 86 JDO
/ IO R]
/ IO R]
WR / WR 86 JDO
/ IO R]
/ IO R]
WR / WR 86 JDO
/ IO R]
/ IO R]
1
WR / WR 86 JDO
/ IO R]
/ IO R]
WR / WR 86 JDO
/ IO R]
/ IO R]
1
WR / WR 86 JDO
/ IO R]
/ IO R]
WR / WR 86 JDO
/ IO R]
/ IO R]
1
&RROLQJ V\VWHPV RI ODUJHU FDSDFLWLHV WKDQ SURYLGHG LQ
7DEOH VKRXOG IROORZ WKH HTXDWLRQ JLYHQ LQ 7DEOH IRU DSSURSULDWH DPRXQW RI 6&$ UHTXLUHG DW LQLWLDO ILOO
7KH HTXDWLRQ JLYHQ LQ 7DEOH LV WKH DSSURSULDWH
DPRXQW RI 6&$ DQG ZDWHU DW PDLQWHQDQFH LQWHUYDOV
$GGLQJ WKH 6&$ WR &RQYHQWLRQDO
&RRODQW$QWLIUHH]H DW ,QLWLDO )LOO
7DEOH (TXDWLRQ )RU $GGLQJ 7KH &DW 6&$ 7R :DWHU $W 7KH ,QLWLDO )LOO
9 î ;
9 LV WKH WRWDO YROXPH RI WKH FRROLQJ V\VWHP
; LV WKH DPRXQW RI &DW 6&$ WKDW LV UHTXLUHG
)RU IOXLGV WKDW RQO\ PHHW WKH ³$670 '´ VSHFLILFDWLRQ
7DEOH LV DQ H[DPSOH IRU XVLQJ WKH HTXDWLRQ WKDW LV
LQ 7DEOH 7DEOH ([DPSOH 2I 7KH (TXDWLRQ )RU $GGLQJ 7KH &DW 6&$ 7R :DWHU
$W 7KH ,QLWLDO )LOO
7RWDO 9ROXPH RI WKH
&RROLQJ 6\VWHP 9
0XOWLSOLFDWLRQ
)DFWRU
$PRXQW RI &DW
6&$ WKDW LV 5H
TXLUHG ;
/
86 JDO
î /
86 JDO
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH
$GGLQJ WKH 6&$ WR &RQYHQWLRQDO
&RRODQW$QWLIUHH]H )RU
0DLQWHQDQFH
&RQYHQWLRQDO KHDY\GXW\ FRRODQWDQWLIUHH]H RI DOO
W\SHV 5(48,5( SHULRGLF DGGLWLRQV RI D VXSSOHPHQWDO
FRRODQW DGGLWLYH
7HVW WKH FRRODQWDQWLIUHH]H SHULRGLFDOO\ IRU WKH
FRQFHQWUDWLRQ RI 6&$ )RU WKH LQWHUYDO VHH WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO ³0DLQWHQDQFH
,QWHUYDO 6FKHGXOH´ IRU \RXU HQJLQH 6&$ WHVW NLWV DUH
DYDLODEOH IURP \RXU &DW GHDOHU 7HVW WKH FRQFHQWUDWLRQ
RI 6&$ RU VXEPLW D FRRODQW VDPSOH WR \RXU &DW GHDOHU
5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³6ā2ā6 6HUYLFHV
&RRODQW $QDO\VLV´ DUWLFOH
$GGLWLRQV RI 6&$ DUH EDVHG RQ WKH UHVXOWV RI WKH WHVW
RU EDVHG RQ WKH UHVXOWV RI WKH FRRODQW DQDO\VLV 7KH
VL]H RI WKH FRROLQJ V\VWHP GHWHUPLQHV WKH DPRXQW RI
6&$ WKDW LV QHHGHG
7DEOH (TXDWLRQ IRU WKH $GGLWLRQ RI &DW 6&$ 7R :DWHU )RU
0DLQWHQDQFH
9 î ;
9 LV WKH WRWDO YROXPH RI WKH FRROLQJ V\VWHP
; LV WKH DPRXQW RI &DW 6&$ WKDW LV UHTXLUHG
7DEOH LV DQ H[DPSOH IRU XVLQJ WKH HTXDWLRQ WKDW LV
LQ 7DEOH 7DEOH ([DPSOH RI WKH (TXDWLRQ IRU WKH $GGLWLRQ RI &DW 6&$ 7R :DWHU
)RU 0DLQWHQDQFH
7RWDO 9ROXPH RI WKH
&RROLQJ 6\VWHP 9
0XOWLSOLFDWLRQ
)DFWRU
$PRXQW RI &DW
6&$ WKDW LV 5H
TXLUHG ;
/
86 JDO
î /
86 JDO
1RWH 6SHFLILF HQJLQH DSSOLFDWLRQV PD\ UHTXLUH
PDLQWHQDQFH SUDFWLFHV WR EH SHULRGLFDOO\ HYDOXDWHG LQ
RUGHU WR PDLQWDLQ WKH HQJLQH FRROLQJ V\VWHP SURSHUO\
&OHDQLQJ WKH 6\VWHP RI +HDY\'XW\
&RRODQW$QWLIUHH]H
%HIRUH &DW 6&$ FDQ EH HIIHFWLYH WKH FRROLQJ V\VWHP
PXVW EH IUHH IURP UXVW VFDOH DQG RWKHU GHSRVLWV
3UHYHQWLYH FOHDQLQJ KHOSV DYRLG GRZQWLPH FDXVHG E\
H[SHQVLYH RXWRIVHUYLFH FOHDQLQJ UHTXLUHG IRU
H[WUHPHO\ GLUW\ DQG QHJOHFWHG FRROLQJ V\VWHPV
&DW &RROLQJ 6\VWHP &OHDQHUV
'LVVROYHV RU GHSUHVVHV PLQHUDO VFDOHV FRUURVLRQ
SURGXFWV OLJKW RLO FRQWDPLQDWLRQV DQG VOXGJHV
&OHDQV WKH FRROLQJ V\VWHP DIWHU XVHG FRRODQW LV
GUDLQHG RU EHIRUH WKH FRROLQJ V\VWHP LV ILOOHG ZLWK
QHZ FRRODQW
&OHDQV WKH FRROLQJ V\VWHP ZKHQHYHU WKH FRRODQW LV
FRQWDPLQDWHG RU ZKHQHYHU WKH FRRODQW LV IRDPLQJ
7KH ³6WDQGDUG´ YHUVLRQ RI WKH &DW &RROLQJ 6\VWHP
&OHDQHUV FOHDQ WKH FRROLQJ V\VWHP ZKLOH VWLOO LQ
VHUYLFH
5HGXFHV GRZQWLPH DQG FOHDQLQJ FRVWV
+HOSV DYRLG FRVWO\ UHSDLUV IURP SLWWLQJ DQG RWKHU
LQWHUQDO SUREOHPV FDXVHG E\ LPSURSHU FRROLQJ
V\VWHP PDLQWHQDQFH
&DQ EH XVHG ZLWK JO\FROEDVHG DQWLIUHH]H
)RU WKH UHFRPPHQGHG VHUYLFH LQWHUYDO UHIHU WR WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
³0DLQWHQDQFH ,QWHUYDO 6FKHGXOH´ IRU \RXU HQJLQH
&DW 6WDQGDUG &RROLQJ 6\VWHP &OHDQHUV DUH GHVLJQHG
WR FOHDQ WKH FRROLQJ V\VWHP RI KDUPIXO VFDOH DQG
FRUURVLRQ ZLWKRXW UHPRYLQJ WKH HQJLQH IURP VHUYLFH
7KH FOHDQHUV ERWK ³6WDQGDUG´ DQG ³4XLFN )OXVK´ FDQ
EH XVHG LQ DOO &DW HQJLQH FRROLQJ V\VWHPV &RQVXOW
\RXU &DW GHDOHU IRU SDUW QXPEHUV
1RWH 7KHVH FOHDQHUV PXVW QRW EH XVHG LQ V\VWHPV
WKDW KDYH EHHQ QHJOHFWHG RU WKDW KDYH KHDY\ VFDOH
EXLOGXS 7KHVH V\VWHPV UHTXLUH D VWURQJHU
FRPPHUFLDO VROYHQW WKDW LV DYDLODEOH IURP ORFDO
GLVWULEXWRUV
3ULRU WR SHUIRUPLQJ D FOHDQLQJ RI WKH FRROLQJ V\VWHP
WDNH D OLWHU TXDUW VDPSOH RI FRRODQW IURP WKH
HQJLQH ZKLOH LQ RSHUDWLRQ LQWR D FOHDU FRQWDLQHU 7DNH
WKH VDPSOH VKRUWO\ DIWHU VWDUWXS ZKLOH WKH FRRODQW LV
QRW \HW KRW 7KH FRRODQW VKRXOG EH DGHTXDWHO\ PL[HG
E\ WKH ZDWHU SXPS $OORZ WKH VDPSOH WR VLW IRU KRXUV ,I D YLVLEOH RLO OD\HU LV SUHVHQW QHLWKHU WKH
6WDQGDUG FOHDQHUV QRU 4XLFN )OXVK FOHDQHU ZLOO EH
IXOO\ HIIHFWLYH )LUVW GUDLQ WKH FRRODQW DQG WKHQ
SHUIRUP WKH SURFHGXUH JLYHQ EHORZ XVLQJ QRQ
IRDPLQJ GLVK GHWHUJHQW IROORZHG E\ WKH SURFHGXUH
IRU WKH 4XLFN )OXVK FOHDQHU
3URFHGXUH IRU &OHDQLQJ DQ 2LO
&RQWDPLQDWHG &RROLQJ 6\VWHP
'UDLQ WKH FRROLQJ V\VWHP
)LOO WKH FRROLQJ V\VWHP ZLWK DFFHSWDEOH TXDOLW\
ZDWHU
1RWH 5HIHU WR WKH ³&DWHUSLOODU 0LQLPXP $FFHSWDEOH
:DWHU 4XDOLW\ 5HTXLUHPHQWV´ LQ WKLV 6SHFLDO
3XEOLFDWLRQ
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH
6WDUW WKH HQJLQH DQG UXQ WKH HQJLQH XQWLO WKH
WKHUPRVWDW RSHQV
5HILOO WKH FRROLQJ V\VWHP WR FDSDFLW\ ZLWK
DFFHSWDEOH TXDOLW\ ZDWHU
$GG / TW RI QRQIRDPLQJ
GHWHUJHQW ,I WKH FRROLQJ V\VWHP FDSDFLW\ H[FHHGV
/ 86 JDO DGG HQRXJK GHWHUJHQW WR
HTXDO DSSUR[LPDWHO\ FRROLQJ V\VWHP
FDSDFLW\
1RWH 5HIHU WR WKH ³&DWHUSLOODU 0LQLPXP $FFHSWDEOH
:DWHU 4XDOLW\ 5HTXLUHPHQWV´ DV IRXQG LQ WKLV 6SHFLDO
3XEOLFDWLRQ
1RWH 3UHGLVVROYH WKH GHWHUJHQW LQ DSSUR[LPDWHO\ / 86 JDOORQV RI DFFHSWDEOH TXDOLW\ ZDWHU $GG WKLV
PL[WXUH GLUHFWO\ WR WKH FRROLQJ V\VWHP DQG WRS RII WKH
FRROLQJ V\VWHP ZLWK ZDWHU
5XQ WKH HQJLQH IRU DW OHDVW PLQXWHV 'UDLQ WKH
FRROLQJ V\VWHP
5HPRYH D VPDOO VDPSOH RI WKH GHWHUJHQW VROXWLRQ
IURP WKH FRROLQJ V\VWHP $OORZ WKH VROXWLRQ WR VLW
IRU DW OHDVW PLQXWHV DQG FKHFN IRU VLJQV RI D
YLVLEOH RLO OD\HU RQ WRS ,I RLO LV VWLOO SUHVHQW UHSHDW
WKH SURFHGXUH
1RWH &RUURVLRQ RI WKH PHWDO FDQ RFFXU LI WKH
GHWHUJHQW VROXWLRQ LV OHIW LQ WKH FRROLQJ V\VWHP IRU
ORQJHU WKDQ KRXU
)OXVK WKH FRROLQJ V\VWHP LI WKHUH LV QR YLVLEOH RLO
OD\HU LQ WKH VROXWLRQ )LOO WKH FRROLQJ V\VWHP ZLWK
DFFHSWDEOH TXDOLW\ ZDWHU 5XQ WKH HQJLQH IRU PLQXWHV DQG WKHQ GUDLQ WKH ZDWHU
3HUIRUP WKH FOHDQLQJ SURFHGXUH IRXQG LQ WKLV
6SHFLDO 3XEOLFDWLRQ IRU ³&DW &RROLQJ 6\VWHP
&OHDQHU 4XLFN )OXVK´ LI DGGLWLRQDO UHPRYDO RI
VFDOH UXVW DQG LQKLELWRU GHSRVLWV IURP WKH SUHYLRXV
FRRODQW LV QHHGHG
,I DGGLWLRQDO FOHDQLQJ LV QRW QHHGHG UHILOO WKH
FRROLQJ V\VWHP ZLWK QHZ FRRODQW
7DEOH &DW &RROLQJ 6\VWHP &OHDQHU IRU XVH ZLWK 4XLFN )OXVK
0HWKRG
&OHDQHU SDUW QXPEHU
6L]H RI &RQWDLQHU
&
/ 86 JDO
&
/ 86 JDO
&
/ 86 JDO
&
/ 86 JDO
&
/ 86 JDO
3URFHGXUH IRU XVLQJ &DW &RROLQJ 6\VWHP
&OHDQHU 4XLFN )OXVK
'UDLQ WKH FRROLQJ V\VWHP
7RS RII WKH FRROLQJ V\VWHP ZLWK &DW &RROLQJ
6\VWHP &OHDQHU 4XLFN )OXVK FOHDQHU VR WKDW WKH
VROXWLRQ LV FOHDQHU
5XQ WKH HQJLQH IRU KRXUV
$IWHU DOORZLQJ DGHTXDWH WLPH IRU WKH V\VWHP WR FRRO
GUDLQ WKH FRROLQJ V\VWHP
1RWH &RUURVLRQ RI WKH PHWDOV FDQ RFFXU LI WKH 4XLFN
)OXVK FOHDQLQJ VROXWLRQ LV LQ WKH FRROLQJ V\VWHP IRU
ORQJHU WKDQ KRXUV
)OXVK WKH FRROLQJ V\VWHP
D )LOO WKH FRROLQJ V\VWHP ZLWK DFFHSWDEOH TXDOLW\
ZDWHU
E 5XQ WKH HQJLQH IRU PLQXWHV
F 'UDLQ WKH ZDWHU
5HILOO WKH FRROLQJ V\VWHP ZLWK QHZ FRRODQW
7DEOH &DW &RROLQJ 6\VWHP &OHDQHU 6WDQGDUG
3DUW 1XPEHU
9ROXPH
$YDLODELOLW\
9
/ 86 JDO
1RUWK DQG 6RXWK
$PHULFD
/ 86 JDO
(XURSH $IULFD 0LG
GOH (DVW
3URFHGXUH IRU XVLQJ &DW &RROLQJ 6\VWHP
&OHDQHU 6WDQGDUG
,I QHFHVVDU\ GUDLQ RII FRRODQW IURP WKH FRROLQJ
V\VWHP IRU WKH DPRXQW RI WKH FOHDQHU
$GG ERWWOH / 86 JDO RI &DW &RROLQJ
6\VWHP &OHDQHU 6WDQGDUG IRU HDFK / RI
FRROLQJ V\VWHP FDSDFLW\ $GG WKH FOHDQHU GLUHFWO\ WR
WKH FRRODQW
5XQ WKH HQJLQH DV XVXDO
$IWHU GD\V GUDLQ WKH FRROLQJ V\VWHP
)OXVK WKH FRROLQJ V\VWHP
D )LOO WKH FRROLQJ V\VWHP ZLWK DFFHSWDEOH TXDOLW\
ZDWHU
E 5XQ WKH HQJLQH IRU PLQXWHV
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RPPHUFLDO +HDY\'XW\ &RRODQW$QWLIUHH]H DQG 6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH
)ROORZ WKH PDLQWHQDQFH LQIRUPDWLRQ SURYLGHG LQ WKH
³&RRODQW DQG *HQHUDO 0DLQWHQDQFH
5HFRPPHQGDWLRQV´ VHFWLRQ LQ WKLV 6SHFLDO
3XEOLFDWLRQ
F 'UDLQ WKH ZDWHU
5HILOO WKH FRROLQJ V\VWHP ZLWK QHZ FRRODQW
5HF\FOLQJ &DW '($&
&DW '($& FDQ EH UHF\FOHG 7KH GUDLQHG FRRODQW
PL[WXUH FDQ EH GLVWLOOHG LQ RUGHU WR VHSDUDWH WKH
HWK\OHQH JO\FRO DQG ZDWHU 7KH HWK\OHQH JO\FRO DQG
WKH ZDWHU FDQ EH UHXVHG 7KH GLVWLOOHG PDWHULDO GRHV
QRW FRQWDLQ WKH DGGLWLYHV WKDW DUH FODVVLILHG DV HLWKHU
&DW (/& RU &DW '($& &RQVXOW \RXU &DW GHDOHU IRU
PRUH LQIRUPDWLRQ
:KHQ UHF\FOHG FRRODQWV DUH XVHG XVH RQO\ FRRODQWV
WKDW KDYH EHHQ UHF\FOHG IURP H[WHQGHG OLIH KHDY\
GXW\ RU DXWRPRWLYH FRRODQWV 8VH FRRODQWV WKDW ZHUH
RULJLQDOO\ PDQXIDFWXUHG IURP YLUJLQ HWK\OHQH RU
SURS\OHQH JO\FRO
5HF\FOHG FRRODQWV VKRXOG PHHW WKH ODWHVW UHYLVLRQ RI
³$670 '´
L
&RPPHUFLDO +HDY\'XW\
&RRODQW$QWLIUHH]H DQG 6&$
6XSSOHPHQWDO &RRODQW
$GGLWLYH
60&6 &RGH 127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV
127,&(
'R 127 PL[ EUDQGV RU W\SHV RI 6&$ 'R 127 PL[
6&$V DQG H[WHQGHUV
)DLOXUH WR IROORZ WKH UHFRPPHQGDWLRQV FDQ UHVXOW LQ
VKRUWHQHG FRROLQJ V\VWHP FRPSRQHQW OLIH
127,&(
8VH 2QO\ $SSURYHG 6&$V &RQYHQWLRQDO FRRODQWV
UHTXLUH WKH PDLQWHQDQFH DGGLWLRQ RI 6&$ WKURXJKRXW
WKHLU H[SHFWHG OLIH 'R 127 XVH DQ 6&$ ZLWK D FRRO
DQW XQOHVV VSHFLILFDOO\ DSSURYHG E\ WKH FRRODQW VXSSOL
HU IRU XVH ZLWK WKHLU FRRODQW ,W LV WKH UHVSRQVLELOLW\ RI
WKH FRRODQW PDQXIDFWXUHU WR HQVXUH FRPSDWLELOLW\ DQG
DFFHSWDEOH SHUIRUPDQFH
)DLOXUH WR IROORZ WKH UHFRPPHQGDWLRQV FDQ UHVXOW LQ
VKRUWHQHG FRROLQJ V\VWHP FRPSRQHQW OLIH
6HOHFW D FRPPHUFLDO GLHVHO HQJLQH DQWLIUHH]H FRRODQW
WKDW PHHWV DOO WKH UHTXLUHPHQWV JLYHQ LQ 7DEOH 7KH WDEOH FRQWDLQV WKH UHTXLUHPHQWV IRU FRRODQW WR
PHHW WKH SXEOLVKHG VHUYLFH LQWHUYDOV
7KH SURYLGHG UHTXLUHPHQWV DUH DSSOLFDEOH WR ILQLVKHG
FRRODQWV DQG QRW IRU WKH FRQFHQWUDWHV :KHQ
FRQFHQWUDWHG FRRODQWDQWLIUHH]H LV PL[HG &DW
UHFRPPHQGV PL[LQJ WKH FRQFHQWUDWH ZLWK GLVWLOOHG
ZDWHU RU ZLWK GHLRQL]HG ZDWHU ,I GLVWLOOHG ZDWHU RU
GHLRQL]HG ZDWHU LV QRW DYDLODEOH ZDWHU ZKLFK KDV WKH
UHTXLUHG SURSHUWLHV PD\ EH XVHG )RU WKH ZDWHU
SURSHUWLHV UHIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ ³*HQHUDO
&RRODQW ,QIRUPDWLRQ´ DUWLFOH
&RRODQWDQWLIUHH]HV IRU KHDY\GXW\ DSSOLFDWLRQV WKDW
PHHW ³$670 '´ GR QRW UHTXLUH WUHDWPHQW ZLWK
6&$ DW WKH LQLWLDO ILOO 8VH WKH UHFRPPHQGHG RU
KLJKHU FRQFHQWUDWLRQ ZLWK UHFRPPHQGHG ZDWHU
7UHDWPHQW ZLWK 6&$ LV UHTXLUHG RQ D PDLQWHQDQFH
EDVLV
7KH 6&$ PDQXIDFWXUHU LV UHVSRQVLEOH IRU HQVXULQJ
WKH 6&$ LV FRPSDWLEOH ZLWK ZDWHU PHHWLQJ WKH
³&DWHUSLOODU 0LQLPXP $FFHSWDEOH :DWHU 4XDOLW\
5HTXLUHPHQWV´ DV IRXQG LQ WKLV 6SHFLDO 3XEOLFDWLRQ
DQG ³$670 ' 7DEOH ;´ 7KH FRRODQW
PDQXIDFWXUHU DQG WKH 6&$ PDQXIDFWXUHU DUH
UHVSRQVLEOH WR HQVXUH WKDW WKH SURGXFWV ZLOO QRW FDXVH
FRROLQJ V\VWHP KDUP
'R QRW PL[ EUDQGV RU W\SHV RI FRRODQWV ZLWK GLIIHUHQW
EUDQGV RU W\SHV RI 6&$ RU H[WHQGHU
,I XVLQJ QRQ &DW FRRODQWV UHIHU WR WKH FRRODQW
PDQXIDFWXUHU IRU LQIRUPDWLRQ RQ D FRPSDWLEOH 6&$
7UHDW WKH FRPSDWLEOH FRPPHUFLDO FRRODQW ZLWK WR SHUFHQW &DW 6&$ E\ YROXPH 0DLQWDLQ D WR SHUFHQW FRQFHQWUDWLRQ OHYHO RI 6&$ LQ WKH FRROLQJ
V\VWHP )RU PRUH LQIRUPDWLRQ UHIHU WR WKLV 6SHFLDO
3XEOLFDWLRQ ³&RQYHQWLRQDO &RRODQW$QWLIUHH]H
&RROLQJ 6\VWHP 0DLQWHQDQFH´ DUWLFOH
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
:DWHU6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH
7DEOH 7HFKQLFDO 5HTXLUHPHQWV IRU &RPPHUFLDO 'LHVHO (QJLQH $QWLIUHH]H &RRODQWV
6SHFLILFDWLRQV
$670 ' RU $670 '
$GGLWLRQDO 5HTXLUHPHQWV
6LOLFRQ SSP PLQLPXP WR SSP PD[LPXP
1LWULWHV PDLQWDLQHG DW SSP JUDLQV86 JDO PLQLPXP WR SSP JUDLQV86 JDO PD[LPXP
&DW 6&$ DW WR SHUFHQW LI &DW 6&$ LV DGGHG
0DLQWHQDQFH
$670 ' $GG FRPSDWLEOH 6&$ DW LQLWLDO ILOO
$670 ' DQG $670 ' $GG FRPSDWLEOH 6&$ DW PDLQWH
QDQFH LQWHUYDOV
&OHDQ DQG IOXVK WKH FRROLQJ V\VWHP DW GUDLQ LQWHUYDOV
L
:DWHU6&$ 6XSSOHPHQWDO
&RRODQW $GGLWLYH
60&6 &RGH &DW 6&$ FDQ EH DGGHG WR ZDWHU RI WKH UHFRPPHQGHG
TXDOLW\ WR IRUP D :DWHU6&$ ILQLVKHG FRRODQW 6&$
:DWHU ILQLVKHG FRRODQW LV JO\FRO IUHH 6&$:DWHU
ILQLVKHG FRRODQW LV IRU HQJLQH DSSOLFDWLRQV WKDW GR QRW
UHTXLUH IUHH]H SURWHFWLRQ
([FHSWLRQV DUH OLVWHG LQ WKLV 6SHFLDO 3XEOLFDWLRQ
³&RRODQW 5HFRPPHQGDWLRQV 6SHFLDO 5HTXLUHPHQWV´
)DLOXUH WR IROORZ WKHVH UHFRPPHQGDWLRQV FDQ RU ZLOO
UHVXOW LQ IDLOXUHV
127,&(
1HYHU XVH ZDWHU DORQH ZLWKRXW 6XSSOHPHQWDO &RRODQW
$GGLWLYHV 6&$ RU ZLWKRXW LQKLELWHG FRRODQW :DWHU
DORQH LV FRUURVLYH DW HQJLQH RSHUDWLQJ WHPSHUDWXUHV
,Q DGGLWLRQ ZDWHU DORQH GRHV QRW SURYLGH DGHTXDWH
SURWHFWLRQ DJDLQVW ERLOLQJ RU IUHH]LQJ
,Q HQJLQH FRROLQJ V\VWHPV WKDW XVH ZDWHU DORQH
&DWHUSLOODU UHFRPPHQGV WKH XVH RI &DW 6&$ &DW
6&$ KHOSV WR SUHYHQW WKH IROORZLQJ FRQGLWLRQV IURP
RFFXUULQJ
&RUURVLRQ
)RUPDWLRQ RI PLQHUDO GHSRVLWV
&DYLWDWLRQ HURVLRQ RI WKH F\OLQGHU OLQHU
)RDPLQJ RI WKH FRRODQW
,I &DW 6&$ LV QRW XVHG VHOHFW D IXOO\ IRUPXODWHG
FRPPHUFLDO 6&$ 7KH FRPPHUFLDO 6&$ PXVW SURYLGH
D PLQLPXP RI PJ/ RU SSP
JUDLQV86 JDO RI QLWULWHV LQ WKH ILQDO FRRODQW
PL[WXUH
7KH TXDOLW\ RI WKH ZDWHU LV DQ LPSRUWDQW IDFWRU LQ WKLV
W\SH RI FRROLQJ V\VWHP 'LVWLOOHG ZDWHU RU GHLRQL]HG
ZDWHU LV UHFRPPHQGHG IRU XVH LQ FRROLQJ V\VWHPV ,I
GLVWLOOHG ZDWHU RU GHLRQL]HG ZDWHU LV QRW DYDLODEOH XVH
ZDWHU WKDW PHHWV RU H[FHHGV WKH PLQLPXP
UHTXLUHPHQWV WKDW DUH OLVWHG LQ WKH WDEOH IRU
UHFRPPHQGHG ZDWHU SURSHUWLHV LQ WKLV 6SHFLDO
3XEOLFDWLRQ ³*HQHUDO &RRODQW ,QIRUPDWLRQ´ WRSLF
$ FRROLQJ V\VWHP WKDW XVHV D PL[WXUH RI 6&$ DQG
ZDWHU RQO\ QHHGV PRUH 6&$ 7KH 6&$ FRQFHQWUDWLRQ
LQ D FRROLQJ V\VWHP WKDW XVHV 6&$ DQG ZDWHU VKRXOG
EH WR SHUFHQW E\ YROXPH
1RWH 'R QRW H[FHHG WKH SHUFHQW PD[LPXP
FRQFHQWUDWLRQ &KHFN WKH FRQFHQWUDWLRQ RI &DW 6&$
ZLWK D &RRODQW 1LWULWH 7HVW .LW IRU 6&$ RU
SHUIRUP DQ 6ā2ā6 FRRODQW DQDO\VLV 7KH WHVW NLW
LQFOXGHV WHVWLQJ WRRO QLWULWH WHVW DPSRXOHV
LQVWUXFWLRQ DQG KDUGFDVH FRQWDLQV UHILOO
DPSRXOHV IRU WKH &RRODQW 1LWULWH 7HVW .LW
1RWH 7KH &RRODQW 1LWULWH 7HVW .LW LV 127
FDOLEUDWHG WR WHVW WKH QLWULWH OHYHOV RI FRQYHQWLRQDO
FRRODQWV RU H[WHQGHG OLIH FRRODQWV
0DLQWDLQ WKH &DW 6&$ LQ WKH VDPH ZD\ DV \RX ZRXOG
PDLQWDLQ D FRROLQJ V\VWHP WKDW XVHV KHDY\GXW\
FRRODQWDQWLIUHH]H $GMXVW WKH PDLQWHQDQFH IRU WKH
DPRXQW RI &DW 6&$ DGGLWLRQV
$GGLQJ WKH &DW 6&$ WR :DWHU DW WKH
,QLWLDO )LOO
8VH WKH HTXDWLRQ WKDW LV LQ WKLV 6SHFLDO 3XEOLFDWLRQ
³&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP
0DLQWHQDQFH´ WR GHWHUPLQH WKH DPRXQW RI &DW 6&$
WKDW LV UHTXLUHG DW WKH LQLWLDO ILOO 7KLV HTXDWLRQ LV IRU D
PL[WXUH RI RQO\ &DW 6&$ DQG ZDWHU
$GGLQJ WKH &DW 6&$ WR :DWHU IRU
0DLQWHQDQFH
)RU WKH UHFRPPHQGHG VHUYLFH LQWHUYDO UHIHU WR WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO ³0DLQWHQDQFH
,QWHUYDO 6FKHGXOH´ IRU \RXU HQJLQH
6XEPLW D FRRODQW VDPSOH WR \RXU &DW GHDOHU 6HH WKLV
6SHFLDO 3XEOLFDWLRQ ³6ā2ā6 6HUYLFHV &RRODQW
$QDO\VLV´ WRSLF
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV
$GGLWLRQV RI &DW 6&$ DUH EDVHG RQ WKH UHVXOWV RI WKH
FRRODQW DQDO\VLV 7KH VL]H RI WKH FRROLQJ V\VWHP
GHWHUPLQHV WKH DPRXQW RI &DW 6&$ WKDW LV UHTXLUHG
8VH WKH HTXDWLRQ WKDW LV LQ WKLV 6SHFLDO 3XEOLFDWLRQ
³&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP
0DLQWHQDQFH´ WR GHWHUPLQH WKH DPRXQW RI &DW 6&$
WKDW LV UHTXLUHG IRU PDLQWHQDQFH LI QHFHVVDU\
5HFRPPHQGHG 6DPSOLQJ ,QWHUYDO
IRU 6ā2ā6 6HUYLFHV &RRODQW
$QDO\VLV
7DEOH 5HFRPPHQGHG ,QWHUYDO
7\SH RI
/HYHO /HYHO )LQLVKHG
&RRODQW
1RWH 6SHFLILF HQJLQH DSSOLFDWLRQV PD\ UHTXLUH
PDLQWHQDQFH SUDFWLFHV WR EH SHULRGLFDOO\ HYDOXDWHG LQ
RUGHU WR PDLQWDLQ SURSHUO\ WKH HQJLQH FRROLQJ V\VWHP
6&$ DQG SDUW QXPEHUV DUH DYDLODEOH IURP \RXU &DW
GHDOHU
L
&DW '($&
&DW 6&$
(YHU\ KRXUV &RQYHQWLRQDO +HDY\
'XW\ &RRODQWV
&DW (/&
&DW (/,
&RPPHUFLDO (&
&RRODQWV
6ā2ā6 6HUYLFHV &RRODQW
$QDO\VLV
60&6 &RGH 7HVWLQJ WKH HQJLQH FRRODQW LV LPSRUWDQW WR HQVXUH WKDW
WKH HQJLQH LV SURWHFWHG IURP LQWHUQDO FDYLWDWLRQ DQG
FRUURVLRQ 7KH DQDO\VLV DOVR WHVWV WKH DELOLW\ RI WKH
FRRODQW WR SURWHFW WKH HQJLQH IURP ERLOLQJ DQG
IUHH]LQJ 6ā2ā6 FRRODQW DQDO\VLV FDQ EH GRQH DW \RXU
&DW GHDOHU &DW 6ā2ā6 FRRODQW DQDO\VLV LV WKH EHVW
ZD\ WR PRQLWRU WKH FRQGLWLRQ RI \RXU FRRODQW DQG \RXU
FRROLQJ V\VWHP 6ā2ā6 FRRODQW DQDO\VLV LV D SURJUDP
WKDW LV EDVHG RQ SHULRGLF VDPSOHV
127,&(
'R QRW XVH WKH VDPH YDFXXP VDPSOLQJ SXPS IRU H[
WUDFWLQJ RLO VDPSOHV WKDW LV XVHG IRU H[WUDFWLQJ FRRODQW
VDPSOHV
$ VPDOO UHVLGXH RI HLWKHU W\SH VDPSOH PD\ UHPDLQ LQ
WKH SXPS DQG PD\ FDXVH D IDOVH SRVLWLYH DQDO\VLV IRU
WKH VDPSOH EHLQJ WDNHQ
$OZD\V XVH D VHSDUDWH SXPS IRU RLO VDPSOLQJ DQG D
VHSDUDWH SXPS IRU FRRODQW VDPSOLQJ
)DLOXUH WR GR VR PD\ FDXVH D IDOVH DQDO\VLV ZKLFK
FRXOG OHDG WR FXVWRPHU DQG GHDOHU FRQFHUQV
1HZ 6\VWHPV 5HILOOHG 6\VWHPV
DQG &RQYHUWHG 6\VWHPV
3HUIRUP DQ 6ā2ā6 FRRODQW DQDO\VLV /HYHO DW WKH
IROORZLQJ PDLQWHQDQFH LQWHUYDOV
(YHU\ <HDU
,QLWLDO VHUYLFH KRXUV
3HUIRUP WKLV DQDO\VLV DW WKH LQWHUYDO WKDW RFFXUV ILUVW
IRU QHZ V\VWHPV IRU UHILOOHG V\VWHPV RU IRU FRQYHUWHG
V\VWHPV WKDW XVH &DW FRRODQW SURGXFWV 7KLV KRXU FKHFN ZLOO DOVR FKHFN IRU DQ\ UHVLGXDO FOHDQHU
WKDW PD\ KDYH FRQWDPLQDWHG WKH V\VWHP
<HDUO\ 2SWLRQDO <HDUO\ 7KH UHFRPPHQGHG VDPSOLQJ LQWHUYDO IRU DOO FRPPHUFLDO FRRODQWV
WKDW PHHW &DW (& (QJLQH &RRODQW VSHFLILFDWLRQ 7KH UHFRPPHQGHG VDPSOLQJ LQWHUYDO IRU DOO FRQYHQWLRQDO KHDY\
GXW\ FRRODQWDQWLIUHH]H
7KH /HYHO &RRODQW $QDO\VLV VKRXOG EH SHUIRUPHG VRRQHU LI D
SUREOHP LV VXVSHFWHG RU LGHQWLILHG
1RWH &KHFN WKH 6&$ 6XSSOHPHQWDO &RRODQW
$GGLWLYH RI WKH FRQYHQWLRQDO FRRODQW DW HYHU\ RLO
FKDQJH RU DW HYHU\ KRXUV 3HUIRUP WKLV FKHFN DW
WKH LQWHUYDO WKDW RFFXUV ILUVW
6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV
/HYHO $ FRRODQW DQDO\VLV /HYHO LV D WHVW RI WKH SURSHUWLHV
RI WKH FRRODQW
7KH IROORZLQJ SURSHUWLHV RI WKH FRRODQW DUH WHVWHG
*O\FRO FRQFHQWUDWLRQ IRU IUHH]H SURWHFWLRQ DQG ERLO
SURWHFWLRQ
$ELOLW\ WR SURWHFW IURP HURVLRQ DQG FRUURVLRQ
S+
&RQGXFWLYLW\
9LVXDO DQDO\VLV
2GRU DQDO\VLV
7KH UHVXOWV DUH UHSRUWHG DQG DSSURSULDWH
UHFRPPHQGDWLRQV DUH PDGH
6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV
/HYHO $ FRRODQW DQDO\VLV /HYHO LV D FRPSUHKHQVLYH
FKHPLFDO HYDOXDWLRQ RI WKH FRRODQW 7KLV DQDO\VLV LV
DOVR D FKHFN RI WKH RYHUDOO FRQGLWLRQ RI WKH FRROLQJ
V\VWHP
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV
7KH 6ā2ā6 FRRODQW DQDO\VLV /HYHO KDV WKH
IROORZLQJ IHDWXUHV
)XOO FRRODQW DQDO\VLV /HYHO ,GHQWLILFDWLRQ RI PHWDO FRUURVLRQ DQG RI
FRQWDPLQDQWV
,GHQWLILFDWLRQ RI EXLOGXS RI WKH LPSXULWLHV WKDW FDXVH
FRUURVLRQ
,GHQWLILFDWLRQ RI EXLOGXS RI WKH LPSXULWLHV WKDW FDXVH
VFDOLQJ
'HWHUPLQDWLRQ RI WKH SRVVLELOLW\ RI HOHFWURO\VLV
ZLWKLQ WKH FRROLQJ V\VWHP RI WKH HQJLQH
7KH UHVXOWV DUH UHSRUWHG DQG DSSURSULDWH
UHFRPPHQGDWLRQV DUH PDGH
)RU PRUH LQIRUPDWLRQ RQ 6ā2ā6 FRRODQW DQDO\VLV
FRQVXOW \RXU &DW GHDOHU
6(%8
6(%8
([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV
'LHVHO ([KDXVW )OXLG '()
([KDXVW $IWHUWUHDWPHQW
)OXLGV 6SHFLILFDWLRQV
7KH FDSV RI '() WDQNV DUH EOXH DV UHTXLUHG E\
HPLVVLRQV UHJXODWLRQV )LOO '() RQO\ LQ FOHDUO\ PDUNHG
'() WDQNV WKDW KDYH WKH EOXH FDS
L
'LHVHO ([KDXVW )OXLG '()
)RU 8VH LQ 6&5HTXLSSHG
HQJLQHV
60&6 &RGH .
*HQHUDO ,QIRUPDWLRQ
&DWHUSLOODU UHFRPPHQGV WKH XVH RI '() DYDLODEOH
WKURXJK WKH &DW SDUWV RUGHULQJ V\VWHP IRU XVH LQ &DW
HQJLQHV HTXLSSHG ZLWK 6&5 V\VWHPV 5HIHU WR 7DEOH
IRU SDUW QXPEHU LQIRUPDWLRQ
7DEOH &DW 3DUW 1XPEHU 8UHD
&RQWDLQHU 6L]H
JDO ERWWOH
/ WRWH
'LHVHO ([KDXVW )OXLG '() LV D OLTXLG WKDW LV LQMHFWHG
LQWR WKH H[KDXVW V\VWHP RI HQJLQHV HTXLSSHG ZLWK
6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 V\VWHPV 6&5
UHGXFHV HPLVVLRQV RI QLWURJHQ R[LGHV 12[ LQ GLHVHO
HQJLQH H[KDXVW
,Q 1RUWK $PHULFD FRPPHUFLDO '() RI SHUFHQW
XUHD FRQFHQWUDWLRQ WKDW LV $3, DSSURYHG DQG PHHWV DOO
WKH UHTXLUHPHQWV GHILQHG LQ ³,62 ´ PD\ EH
XVHG LQ &DW HQJLQHV WKDW DUH HTXLSSHG ZLWK 6&5
V\VWHPV
'LHVHO ([KDXVW )OXLG '() LV DYDLODEOH LQ PDQ\
EUDQGV LQFOXGLQJ WKRVH EUDQGV WKDW FDUU\ WKH $G%OXH
RU $3, FHUWLILFDWLRQ '() LV DOVR JHQHULFDOO\ UHIHUUHG WR
DV XUHD
2XWVLGH RI 1RUWK $PHULFD FRPPHUFLDO '() RI SHUFHQW XUHD FRQFHQWUDWLRQ WKDW PHHWV DOO
UHTXLUHPHQWV GHILQHG LQ ³,62 ´ PD\ EH XVHG
LQ &DW HQJLQHV WKDW DUH HTXLSSHG ZLWK 6&5 V\VWHPV
,Q HQJLQHV HTXLSSHG ZLWK 6&5 HPLVVLRQV UHGXFWLRQ
V\VWHP '() LV LQMHFWHG LQ FRQWUROOHG DPRXQWV LQWR WKH
HQJLQH H[KDXVW VWUHDP $W WKH HOHYDWHG H[KDXVW
WHPSHUDWXUH XUHD LQ '() LV FRQYHUWHG WR DPPRQLD
7KH DPPRQLD FKHPLFDOO\ UHDFWV ZLWK 12[ LQ GLHVHO
H[KDXVW LQ WKH SUHVHQFH RI WKH 6&5 FDWDO\VW 7KH
UHDFWLRQ FRQYHUWV 12[ LQWR KDUPOHVV QLWURJHQ 1
DQG ZDWHU +2 7KH VXSSOLHU VKRXOG SURYLGH GRFXPHQWDWLRQ WR SURYH
WKH '() LV FRPSOLDQW ZLWK WKH UHTXLUHPHQWV RI ³,62
´
1RWH )ROORZ DOO DSSOLFDEOH LQGXVWU\ VWDQGDUGV DQG DOO
DSSOLFDEOH JRYHUQPHQWDO HQYLURQPHQWDO VDIHW\
JXLGHOLQHV SUDFWLFHV UHJXODWLRQV DQG PDQGDWHV
1RWH 7KHVH JHQHUDO UHFRPPHQGDWLRQV DQG
JXLGHOLQHV FRQFHUQLQJ PDLQWHQDQFH DQG FDUH RI '()
DQG '() VWRUDJH V\VWHPV DUH QRW LQWHQGHG WR EH DOO
LQFOXVLYH 'LVFXVV SURSHU '() VDIHW\ KHDOWK
KDQGOLQJ DQG PDLQWHQDQFH SUDFWLFHV ZLWK \RXU '()
VXSSOLHU 8VH RI WKHVH JHQHUDO UHFRPPHQGDWLRQV DQG
JXLGHOLQHV GRHV QRW OHVVHQ WKH UHVSRQVLELOLW\ RI WKH
HQJLQH RZQHU DQGRU '() VXSSOLHU WR IROORZ DOO
LQGXVWU\ VWDQGDUG SUDFWLFHV IRU '() VWRUDJH DQG IRU
'() KDQGOLQJ
&KDUDFWHULVWLFV RI '() DQG 8UHD
)OXLGV
'() VROXWLRQV DUH W\SLFDOO\ RI SHUFHQW
FRQFHQWUDWLRQ XUHD +RZHYHU VRPH PDULQH HQJLQHV
PD\ XVH '() SHUFHQW XUHD FRQFHQWUDWLRQ RU
XUHD VROXWLRQV RI SHUFHQW FRQFHQWUDWLRQ $OO '()
VROXWLRQV WKDW DUH RI SHUFHQW XUHD PXVW PHHW DOO
WKH UHTXLUHPHQWV GHILQHG E\ WKH ³,62 ´
VWDQGDUG
127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV
127,&(
'R QRW XVH DJULFXOWXUH JUDGH XUHD VROXWLRQV 'R
QRW XVH DQ\ '() SHUFHQW IOXLG WKDW GRHV QRW PHHW
³,62 ´ 5HTXLUHPHQWV LQ 6&5 HPLVVLRQV UH
GXFWLRQ V\VWHPV 8VH RI WKHVH IOXLGV FDQ UHVXOW LQ QX
PHURXV SUREOHPV LQFOXGLQJ GDPDJH WR 6&5
HTXLSPHQW DQG D UHGXFWLRQ LQ 12[ FRQYHUVLRQ
HIILFLHQF\
'() LV D VROXWLRQ RI VROLG XUHD WKDW LV GLVVROYHG LQ
GHPLQHUDOL]HG ZDWHU WR SURGXFH D ILQDO FRQFHQWUDWLRQ
RI SHUFHQW XUHD 0RVW 6&5 V\VWHPV DUH
GHVLJQHG WR RSHUDWH RQO\ RQ '() FRQFHQWUDWLRQ RI
SHUFHQW '() VROXWLRQ RI XUHD KDV WKH
ORZHVW DWWDLQDEOH IUHH]H SRLQW RI í & ) '() FRQFHQWUDWLRQV WKDW DUH KLJKHU RU ORZHU WKDQ SHUFHQW KDYH KLJKHU IUHH]H SRLQWV '() GRVLQJ
V\VWHPV DQG ³,62 ´ VSHFLILFDWLRQV DUH
GHVLJQHG IRU D VROXWLRQ WKDW LV DSSUR[LPDWHO\ SHUFHQW
0DULQH HQJLQHV DQG RWKHU VSHFLILF DSSOLFDWLRQV PD\
XVH XUHD VROXWLRQV RI SHUFHQW RU SHUFHQW
FRQFHQWUDWLRQV LQ HQJLQHV HTXLSSHG ZLWK 6&5
V\VWHPV 5HIHU WR WKH LQIRUPDWLRQ JLYHQ VSHFLILFDOO\
IRU PDULQH HQJLQHV LQ WKLV '() DUWLFOH DQG WR \RXU
HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
6(%8
([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV
'LHVHO ([KDXVW )OXLG '()
&DW RIIHUV UHIUDFWRPHWHUV WKDW FDQ EH XVHG WR
PHDVXUH '() FRQFHQWUDWLRQ 5HIHU WR 7DEOH IRU
WKH SDUW QXPEHUV )ROORZ WKH LQVWUXFWLRQV SURYLGHG
ZLWK WKH LQVWUXPHQWV
5HIHU WR \RXU HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO WR GHWHUPLQH WKH FRQFHQWUDWLRQ RI XUHD
VROXWLRQ DOORZHG LQ \RXU HQJLQH
7DEOH 127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV DQG JUHDVHV
&DW '() 5HIUDFWRPHWHUV
'LJLWDO GLVSOD\ HDV\ WR XVH
DQG PXOWLIXQFWLRQDO
'() FRRODQW EDWWHU\ IOXLG
DQG PRUH
$QDORJ VSHFLILF WR '() DQG
UHTXLUHV D PXOWLVWHS WHVW
SURFHGXUH
5HIUDFWRPHWHU
3DUW 1XPEHUV
8UHD 6ROXWLRQ 5HFRPPHQGDWLRQV
IRU 0DULQH (QJLQHV
86 ZDWHUV DUH DQ ,QWHUQDWLRQDO 0DULWLPH 2UJDQL]DWLRQ
,02 12[ (PLVVLRQV &RQWURO $UHD 1(&$ /RZ
12[ HQJLQHV DUH UHTXLUHG LQ WKHVH DUHDV 7KHVH
HQJLQHV PD\ UHTXLUH WKH XVH RI 'LHVHO ([KDXVW )OXLG
'() DQG RWKHU XUHD VROXWLRQV IRU HQJLQHV HTXLSSHG
ZLWK 6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 V\VWHPV ,I
UHTXLUHG &DW PDULQH HQJLQHV DUH GHVLJQHG WR RSHUDWH
RQ '() RI XUHD FRQFHQWUDWLRQV RI SHUFHQW E\
ZHLJKW RU SHUFHQW E\ ZHLJKW 7KH FU\VWDOOL]DWLRQ
WHPSHUDWXUH RI SHUFHQW XUHD VROXWLRQ LV &
) ,I XUHD VROXWLRQ DPELHQW WHPSHUDWXUHV DUH
URXWLQHO\ EHORZ & ) DQG VXSSOHPHQWDO KHDW
LV QRW DSSOLHG WR XUHD VWRUDJH WKHQ SHUFHQW
VROXWLRQ VKRXOG EH XVHG DQG PDLQWDLQHG DW D
WHPSHUDWXUH DERYH í & ) 8UHD VROXWLRQV
VKRXOG EH PDLQWDLQHG DERYH WKH VSHFLILHG IUHH]LQJ
WHPSHUDWXUH &RQVXOW WKH XUHD VXSSOLHU DQG IROORZ WKH
JXLGHOLQHV SURYLGHG LQ WKLV DUWLFOH IRU VROXWLRQ KDQGOLQJ
DQG UHFRPPHQGDWLRQV
9HVVHOV WKDW DUH WUDYHOLQJ LQWHUQDWLRQDOO\ DQG WKDW
KDYH RQRII 12[ FRQWUROV PXVW HQDEOH WKHVH FRQWUROV
SULRU WR HQWHULQJ D 1(&$ )RU 86 IODJJHG YHVVHOV RQ
RII FRQWUROV DUH QRW DOORZHG ZLWKRXW DQ H[HPSWLRQ
GXULQJ LQWHUQDWLRQDO WUDYHO 7KH FRQWUROV PXVW DOZD\V
EH RQ )RUHLJQ GHVWLQDWLRQV VKRXOG EH UHYLHZHG IRU
VXSSO\ RI 8/6' IXHO DQG '() SULRU WR GHSDUWXUH
([HPSWLRQV IRU 8/6' RU '() XVH E\ 86 IODJJHG
YHVVHOV PD\ EH UHTXHVWHG IURP WKH 86
(QYLURQPHQWDO 3URWHFWLRQ $JHQF\ (3$ 7KH (3$
FDQ EH FRQWDFWHG DW WKH IROORZLQJ DGGUHVV
FRPSOLDQFHLQIR#HSDJRY
:KHQ XVHG LQ PDULQH HQJLQHV '() RI SHUFHQW
XUHD FRQFHQWUDWLRQ PXVW PHHW DOO WKH JXLGHOLQHV DQG
TXDOLW\ UHFRPPHQGDWLRQV JLYHQ LQ WKLV &KDSWHU
:KHQ XVHG LQ PDULQH HQJLQHV XUHD VROXWLRQV RI SHUFHQW FRQFHQWUDWLRQ PXVW IROORZ DOO WKH '()
JXLGHOLQHV DQG TXDOLW\ UHFRPPHQGDWLRQV JLYHQ LQ WKLV
FKDSWHU DQG PXVW PHHW WKH FKDUDFWHULVWLFV OLVWHG LQ
7DEOH IRU SHUFHQW FRQFHQWUDWLRQ 7KH VXSSOLHU
VKRXOG SURYLGH GRFXPHQWDWLRQ WR SURYH WKDW WKH XUHD
VROXWLRQ LV FRPSOLDQW ZLWK WKH FKDUDFWHULVWLFV
SXEOLVKHG LQ 7DEOH '() *XLGHOLQHV
'() VROXWLRQ LV W\SLFDOO\ FRORUOHVV DQG FOHDU &KDQJHV
WR FRORU RU FODULW\ DUH LQGLFDWRUV RI TXDOLW\ LVVXHV
4XDOLW\ RI '() FDQ GHJUDGH ZKHQ VWRUHG DQG
KDQGOHG LQDSSURSULDWHO\ RU LI '() LV QRW SURWHFWHG
IURP FRQWDPLQDWLRQ 'HWDLOV DUH SURYLGHG EHORZ
,I TXDOLW\ LVVXHV DUH VXVSHFWHG WHVWLQJ RI '() VKRXOG
IRFXV RQ XUHD SHUFHQWDJH DONDOLQLW\ DV 1+ DQG
ELXUHW FRQWHQW '() WKDW GRHV QRW SDVV DOO WKHVH WHVWV
RU WKDW LV QR ORQJHU FOHDU VKRXOG QRW EH XVHG
1RWH &DWHUSLOODU VWURQJO\ UHFRPPHQGV WKDW
FXVWRPHUV SXUFKDVH WKH SUHPL[HG '() XUHD VROXWLRQ
IURP D UHSXWDEOH VXSSOLHU 7KH '() PXVW VDWLVI\ DOO
WKH VSHFLILFDWLRQV RI TXDOLW\ JLYHQ LQ WKLV FKDSWHU RI
WKLV 6SHFLDO 3XEOLFDWLRQ 8UHD VROXWLRQV WKDW DUH QRW
PDGH RI XUHD DQG ZDWHU RI WKH DSSURSULDWH TXDOLW\ DQG
FOHDQOLQHVV PD\ GDPDJH WKH 6&5 V\VWHP 3RRU RU
TXHVWLRQDEOH TXDOLW\ '() FDQ OHDG WR DGGLWLRQDO UHSDLU
DQG PDLQWHQDQFH FRVWV WR WKH FXVWRPHU &DW
ZDUUDQWLHV GR QRW FRYHU IDLOXUHV FDXVHG E\ RU UHODWHG
WR XVH RI RXW RI VSHFLILFDWLRQ XUHD VROXWLRQV LQ 7LHU 6WDJH ,,,% 0/,7 6WHS SURGXFWV HTXLSSHG ZLWK 6&5
V\VWHPV
0DWHULDOV FRPSDWLELOLW\
'() LV FRUURVLYH 'XH WR WKH FRUURVLRQ FDXVHG '()
PXVW EH VWRUHG LQ WDQNV FRQVWUXFWHG RI DSSURYHG
PDWHULDOV 5HFRPPHQGHG VWRUDJH PDWHULDOV
6WDLQOHVV 6WHHOV
6
/ 6
6
/ 6
$OOR\V DQG PHWDOV
&KURPLXP 1LFNHO &U1L
&KURPLXP 1LFNHO 0RO\EGHQXP &U1L0R
7LWDQLXP
1RQPHWDOOLF PDWHULDOV
6(%8
([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV
'LHVHO ([KDXVW )OXLG '()
3RO\HWK\OHQH
&OHDQOLQHVV
3RO\SURS\OHQH
&RQWDPLQDQWV FDQ GHJUDGH WKH TXDOLW\ DQG OLIH RI
'() )LOWHULQJ '() LV UHFRPPHQGHG ZKHQ GLVSHQVHG
LQWR WKH '() WDQN )LOWHUV VKRXOG EH FRPSDWLEOH ZLWK
'() DQG VKRXOG EH XVHG H[FOXVLYHO\ ZLWK '() &KHFN
ZLWK WKH ILOWHU VXSSOLHU WR FRQILUP FRPSDWLELOLW\ ZLWK
'() EHIRUH XVLQJ 0HVKW\SH ILOWHUV XVLQJ FRPSDWLEOH
PHWDOV VXFK DV VWDLQOHVV VWHHO DUH UHFRPPHQGHG
3DSHU FHOOXORVH PHGLD DQG VRPH V\QWKHWLF ILOWHU
PHGLD DUH QRW UHFRPPHQGHG EHFDXVH RI GHJUDGDWLRQ
GXULQJ XVH
3RO\LVREXW\OHQH
7HIORQ 3)$
3RO\IOXRURHWK\OHQH 3)(
3RO\YLQ\OLGHQH IOXRULGH 39')
3RO\WHWUDIOXRURHWK\OHQH 37)(
0DWHULDOV 127 FRPSDWLEOH ZLWK '() VROXWLRQV LQFOXGH
DOXPLQXP FRSSHU FRSSHU DOOR\V PDJQHVLXP ]LQF
QLFNHO FRDWLQJV VLOYHU DQG FDUERQ VWHHO DQG VROGHUV
FRQWDLQLQJ DQ\ RI WKH DERYH 8QH[SHFWHG UHDFWLRQV
PD\ RFFXU LI '() VROXWLRQV FRPH LQ FRQWDFW ZLWK DQ\
QRQFRPSDWLEOH PDWHULDO RU XQNQRZQ PDWHULDOV
%XON VWRUDJH
)ROORZ DOO ORFDO UHJXODWLRQV FRYHULQJ EXON VWRUDJH
WDQNV )ROORZ SURSHU WDQN FRQVWUXFWLRQ JXLGHOLQHV
7DQN YROXPH W\SLFDOO\ VKRXOG EH RI SODQQHG
FDSDFLW\ $SSURSULDWHO\ YHQW LQGRRU WDQNV 3ODQ IRU
FRQWURO RI RYHUIORZ RI WKH WDQN +HDW WDQNV WKDW
GLVSHQVH '() LQ FROG FOLPDWHV
&DUH VKRXOG EH WDNHQ ZKHQ GLVSHQVLQJ '() 6SLOOV
VKRXOG EH FOHDQHG LPPHGLDWHO\ 0DFKLQH RU HQJLQH
VXUIDFHV VKRXOG EH ZLSHG FOHDQ DQG ULQVHG ZLWK
ZDWHU &DXWLRQ VKRXOG EH XVHG ZKHQ GLVSHQVLQJ '()
QHDU DQ HQJLQH WKDW KDV UHFHQWO\ EHHQ UXQQLQJ
1RWH 6SLOOLQJ '() RQWR KRW FRPSRQHQWV PD\ FDXVH
WKH UHOHDVH RI DPPRQLD YDSRUV 'R QRW EUHDWKH
DPPRQLD YDSRUV 'R QRW FOHDQ XS DQ\ VSLOOV ZLWK
EOHDFK
6WDELOLW\
%XON WDQN EUHDWKHUV VKRXOG EH ILWWHG ZLWK ILOWUDWLRQ WR
NHHS DLUERUQH GHEULV IURP HQWHULQJ WKH WDQN
'HVLFFDQW EUHDWKHUV VKRXOG QRW EH XVHG EHFDXVH
ZDWHU ZLOO EH DEVRUEHG ZKLFK SRWHQWLDOO\ FDQ DOWHU
'() FRQFHQWUDWLRQ
'() IOXLG LV VWDEOH ZKHQ VWRUHG DQG KDQGOHG SURSHUO\
7KH TXDOLW\ RI '() UDSLGO\ GHJUDGHV ZKHQ VWRUHG DW
KLJK WHPSHUDWXUHV 7KH LGHDO VWRUDJH WHPSHUDWXUH IRU
'() LV EHWZHHQ í & ) DQG & ) '() WKDW LV VWRUHG DERYH & ) IRU ORQJHU
WKDQ PRQWK PXVW EH WHVWHG EHIRUH XVH 7HVWLQJ
VKRXOG HYDOXDWH 8UHD 3HUFHQWDJH $ONDOLQLW\ DV 1+
DQG %LXUHW FRQWHQW
+DQGOLQJ
7KH OHQJWK RI VWRUDJH RI '() LV OLVWHG LQ WKH IROORZLQJ
WDEOH
)ROORZ DOO ORFDO UHJXODWLRQV FRYHULQJ WUDQVSRUW DQG
KDQGOLQJ '() WUDQVSRUW WHPSHUDWXUH LV
UHFRPPHQGHG WR EH í & ) WR & ) $OO WUDQVIHU HTXLSPHQW DQG LQWHUPHGLDWH FRQWDLQHUV
VKRXOG EH XVHG H[FOXVLYHO\ IRU '() &RQWDLQHUV
VKRXOG QRW EH UHXVHG IRU DQ\ RWKHU IOXLGV (QVXUH WKDW
WUDQVIHU HTXLSPHQW LV PDGH IURP '()FRPSDWLEOH
PDWHULDOV 5HFRPPHQGHG PDWHULDO IRU KRVHV DQG
RWKHU QRQPHWDOOLF WUDQVIHU HTXLSPHQW LQFOXGH
1LWULOH 5XEEHU 1%5
)OXRURHODVWRPHU ).0
(WK\OHQH 3URS\OHQH 'LDQH ,RQRPHU (3'0
7KH FRQGLWLRQ RI KRVHV DQG RWKHU QRQPHWDOOLF LWHPV
WKDW DUH XVHG ZLWK '() VKRXOG EH PRQLWRUHG IRU VLJQV
RI GHJUDGDWLRQ '() OHDNV DUH HDVLO\ UHFRJQL]DEOH E\
ZKLWH XUHD FU\VWDOV WKDW DFFXPXODWH DW WKH VLWH RI WKH
OHDN 6ROLG XUHD FDQ EH FRUURVLYH WR JDOYDQL]HG RU
XQDOOR\HG VWHHO DOXPLQXP FRSSHU DQG EUDVV /HDNV
VKRXOG EH UHSDLUHG LPPHGLDWHO\ WR DYRLG GDPDJH WR
VXUURXQGLQJ KDUGZDUH
7DEOH 6WRUDJH 7HPSHUDWXUH
([SHFWHG '() /LIH
%HORZ & )
PRQWKV
& ) WR & )
PRQWKV
& ) WR & )
PRQWKV
$ERYH & )
WHVW TXDOLW\ EHIRUH XVH
5HIHU WR ³,62 ´ GRFXPHQW VHULHV IRU PRUH
LQIRUPDWLRQ DERXW '() TXDOLW\ FRQWURO
1RWH 'LVSRVH RI DOO IOXLGV DFFRUGLQJ WR DSSOLFDEOH
UHJXODWLRQV DQG PDQGDWHV
*HQHUDO &KDUDFWHULVWLFV RI '()
)RU GHWDLOHG LQIRUPDWLRQ RQ WKH UHTXLUHPHQWV DQG
FKDUDFWHULVWLFV RI '() UHIHU ³,62 ´ )RU D TXLFN
UHIHUHQFH W\SLFDO FKDUDFWHULVWLFV RI '() DUH JLYHQ LQ
7DEOH 6(%8
([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV
'LHVHO ([KDXVW )OXLG '()
7DEOH &KDUDFWHULVWLFV IRU 8UHD 6ROXWLRQV
3URSHUW\
8QLW
SHUFHQW
8UHD FRQWHQW
$ONDOLQLW\ DV 1+
3HUFHQW
'HQVLW\ DW & )
J/
5HIUDFWLYH ,QGH[ DW & )
'() SHUFHQW
8UHD 6ROXWLRQ SHUFHQW
SHUFHQW
%LXUHW
3HUFHQW
PD[
$OGHK\GHV
PJNJ
PD[
,QVROXEOH 0DWWHU
PJNJ
PD[
$OXPLQXP
PJNJ
PD[
&DOFLXP
PJNJ
PD[
&KURPLXP
PJNJ
PD[
&RSSHU
PJNJ
PD[
,URQ
PJNJ
PD[
0DJQHVLXP
PJNJ
PD[
1LFNHO
PJNJ
PD[
3KRVSKDWH 32
PJNJ
PD[
3RWDVVLXP
PJNJ
PD[
6RGLXP
PJNJ
PD[
=LQF
PJNJ
PD[
$FFHSWDEOH UDQJH LV SHUFHQW
$FFHSWDEOH UDQJH LV SHUFHQW
7DUJHW YDOXH LV J/
7DUJHW YDOXH LV 7DUJHW YDOXH LV 7DUJHW YDOXH LV 6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
0HDVXULQJ &OHDQOLQHVV
L
&RQWDPLQDWLRQ &RQWURO
60&6 &RGH 'HILQLQJ &RQWDPLQDWLRQ
&RQWDPLQDWLRQ LV GHILQHG DV WKH SUHVHQFH RI
XQZDQWHG IRUHLJQ VXEVWDQFHV LQ IOXLG V\VWHPV RU IOXLG
ZHWWHG SDUWV &RQWDPLQDWLRQ DOWHUV WKH SURSHUWLHV RI
IOXLGV FDXVHV GDPDJH RI IOXLG V\VWHPV DQG SUHYHQWV
V\VWHPV DQG FRPSRQHQWV IURP DWWDLQLQJ WKH GHVLUHG
UHOLDELOLW\ DQG GXUDELOLW\ &RQWDPLQDWLRQ LV WKH SULPDU\
FDXVH RI IOXLG V\VWHP IDLOXUHV
&RQWDPLQDQWV LQFOXGH D ZLGH YDULHW\ RI XQZDQWHG
VXEVWDQFHV LQFOXGLQJ EXW QRW OLPLWHG WR WKH IROORZLQJ
)RUHLJQ DQG DEUDVLYH VXEVWDQFHV VXFK DV ZHDU
SDUWLFOHV ILEHUV GLUW DQG GXVW
&KHPLFDO VXEVWDQFHV VXFK DV SURGXFWV RI
FRPEXVWLRQ WKDW DUH VXVSHQGHG LQ WKH IOXLGV
&URVV FRQWDPLQDWLRQ RI ZDWHU FRRODQW RLO DQG IXHO
%LRORJLFDO PLFURRUJDQLVPV VXFK DV DOJDH RU IXQJL
3K\VLFDOFKHPLFDO FRQWDPLQDQWV VXFK DV SURGXFWV
RI R[LGDWLRQ DQG KHDW
6RPH FRQWDPLQDQWV DUH JHQHUDWHG ZLWKLQ WKH IOXLG
V\VWHP GXH WR WKH QRUPDO RSHUDWLRQ RI WKH V\VWHP
&RQWDPLQDQWV PD\ EH GUDZQ LQWR WKH V\VWHP IURP WKH
RXWVLGH HQYLURQPHQW RU FRQWDPLQDWHG ILOO IOXLGV RU
LPSURSHU PDLQWHQDQFH DQG UHSDLU SUDFWLFHV
3DUWLFOH FRQWDPLQDQWV DUH YLVLEOH WR WKH QDNHG H\H LI
WKH SDUWLFOHV DUH DSSUR[LPDWHO\ P PLFURQV DQG
ODUJHU ZKLOH VPDOOHU SDUWLFOHV DUH QRW YLVLEOH 3DUWLFOH
FRQWDPLQDQWV FDQ FDXVH GDPDJH HYHQ LI WKH SDUWLFOHV
DUH QRW YLVLEOH WR WKH QDNHG H\H 7KH FULWLFDO SDUWLFOH
VL]H IRU ZHDU SDUWLFOHV LQ D PRGHUQ GLHVHO HQJLQH IXHO
V\VWHP LV P
&RQWDPLQDQWV RI DOO W\SHV FDQ EH FRQWUROOHG E\
IROORZLQJ FRQWDPLQDWLRQ FRQWURO SUDFWLFHV DQG XVLQJ
DSSURSULDWH ILOWUDWLRQ 5HIHU WR \RXU 2SHUDWLRQ DQG
0DLQWHQDQFH 0DQXDO DQG WR \RXU ORFDO &DW GHDOHU IRU
UHFRPPHQGDWLRQV
&RQWUROOLQJ FRQWDPLQDWLRQ LV HVSHFLDOO\ LPSRUWDQW IRU
FXUUHQW PDFKLQH V\VWHPV &XUUHQW PDFKLQH V\VWHPV
VXFK DV K\GUDXOLF V\VWHPV DQG IXHO LQMHFWLRQ V\VWHPV
DUH GHVLJQHG ZLWK FORVH WROHUDQFHV DQG RSHUDWH DW
KLJK SUHVVXUHV IRU HQKDQFHG SHUIRUPDQFH 7KHVH
GHVLJQ LPSURYHPHQWV HPSKDVL]H WKH LPSRUWDQFH RI
KLJKHU SHUIRUPLQJ IOXLGV HQKDQFHG IOXLG ILOWUDWLRQ DQG
JUHDWO\ LPSURYHG IOXLG FOHDQOLQHVV OHYHOV
)OXLG FOHDQOLQHVV FDQ EH PHDVXUHG E\ WDNLQJ IOXLG
VDPSOHV IURP YDULRXV PDFKLQH FRPSDUWPHQWV <RXU
&DW GHDOHU FDQ DQDO\]H WKH VDPSOHV 3DUWLFOH
FRQWDPLQDQWV DUH W\SLFDOO\ PHDVXUHG E\ SDUWLFOH
FRXQWHUV &KHPLFDO FRQWDPLQDQWV FDQ EH PHDVXUHG
E\ VSHFLILF DQDO\VLV WHFKQLTXHV VXFK DV R[LGDWLRQ
ZDWHU RU VRRW WHVWV 6RPH FKHPLFDO FRQWDPLQDQWV
VXFK DV ZDWHU LQ IXHO FDQ LQWHUIHUH ZLWK WKH SDUWLFOH
FRXQWHUV DQG FDQ EH FRXQWHG DV SDUWLFOHV 5HIHU WR
\RXU &DW 6ā2ā6 ODE RU WR \RXU &DW GHDOHU IRU PRUH
LQIRUPDWLRQ
7KH QXPEHU RI SDUWLFOHV LQ IOXLGV LV H[SUHVVHG LQ ³,62
,QWHUQDWLRQDO 2UJDQL]DWLRQ IRU 6WDQGDUGL]DWLRQ ´
UDWLQJV ³,62 ´ 6WDQGDUG FODVVLILHV IOXLG
FOHDQOLQHVV E\ WKH QXPEHU DQG VL]H RI SDUWLFOHV LQ PLOOLOLWHU RI IOXLG ³,62 ´ 6WDQGDUG PHDVXUHV
SDUWLFOH VL]H LQ P PLFURQV DQG UHSRUWV WKH UHVXOWLQJ
FRXQW LQ WKUHH FRGH UDQJHV ; < = 7KH WKUHH FRGH
UDQJH GHILQHV WKH VL]H DQG GLVWULEXWLRQ RI SDUWLFOHV LQ PLOOLOLWHU RI IOXLG
7KH ILUVW FRGH UDQJH ; UHSUHVHQWV WKH QXPEHU RI
SDUWLFOHV HTXDO WR RU ODUJHU WKDQ P SHU PLOOLOLWHU
RI IOXLG
7KH VHFRQG FRGH UDQJH < UHSUHVHQWV WKH QXPEHU
RI SDUWLFOHV HTXDO WR RU ODUJHU WKDQ P SHU
PLOOLOLWHU RI IOXLG
7KH WKLUG FRGH UDQJH = UHSUHVHQWV WKH QXPEHU RI
SDUWLFOHV HTXDO WR RU ODUJHU WKDQ P SHU PLOOLOLWHU
RI IOXLG
$Q H[DPSOH RI DQ ³,62 ´ SDUWLFOH FRXQW LV &DW ³,62´ FOHDQOLQHVV UHFRPPHQGDWLRQV DUH
H[SUHVVHG DV WZR RU WKUHH FRGHV GHSHQGLQJ RQ WKH
PDFKLQH V\VWHP 7KH WKUHH FRGH UDQJH IROORZV ³,62
´ GHILQLWLRQV DQG LV XVHG IRU OLTXLG IXHOV VXFK DV
GLHVHO DQG JDVROLQH 7KH WZR FRGH V\VWHP H[DPSOH
³,62 ´ LV XVHG IRU FHUWDLQ OXEULFDQW V\VWHPV ,Q
WKH WZR FRGH V\VWHP WKH ILUVW QXPEHU LV WKH QXPEHU
RI SDUWLFOHV HTXDO WR RU ODUJHU WKDQ P SHU PLOOLOLWHU RI
IOXLG 7KLV QXPEHU LV QRW UHTXLUHG DQG PD\ EH
UHSUHVHQWHG E\ D GDVK 7KH VHFRQG QXPEHU <
DQG WKH WKLUG QXPEHU = IROORZ ³,62 ´
GHILQLWLRQV &DW UHSRUWV WKH < DQG = FRGHV IRU
OXEULFDWLQJ RLOV WR NHHS FRQVLVWHQF\ ZLWK ROGHU GDWD
DQG UHSRUWV
$Q H[DPSOH RI WKH SDUWLFOH VL]H DQG GLVWULEXWLRQ RI WKH
³,62 ´ FRGHV LV JLYHQ LQ 7DEOH 6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
7DEOH 1XPEHU RI SDUWLFOHV LQ PLOOLOLWHU RI IOXLG
,62 &RGH
P DQG XS
P DQG XS
P DQG XS
³,62 ´
³,62 ´
1RWH 6HYHUDO IDFWRUV DIIHFW WKH UHVXOWV RI SDUWLFOH
FRXQWV 7KH IDFWRUV LQFOXGH WKH FOHDQOLQHVV RI WKH
HTXLSPHQW XVHG WR REWDLQ WKH VDPSOH VDPSOH
WHFKQLTXHV WKH FOHDQOLQHVV DQG W\SH RI VDPSOH
FRQWDLQHU SDUWLFOH FRXQWHU DFFXUDF\ FDOLEUDWLRQ
PDLQWHQDQFH DQG SURFHVV DQG WKH HQYLURQPHQW
ZKHUH WKH VDPSOH LV SURFXUHG 6DPSOHV VKRXOG EH
WDNHQ DW UHSUHVHQWDWLYH ORFDWLRQV LQ WKH IOXLG
FLUFXODWLRQ V\VWHP RU WKH IOXLG GLVWULEXWLRQ V\VWHP
ZKHQ SRVVLEOH 7KH VDPSOH VKRXOG EH SURWHFWHG
DGHTXDWHO\ IURP FRQWDPLQDWLRQ GXULQJ WUDQVSRUW WR WKH
ODE IRU DQDO\VLV
,Q DGGLWLRQ SDUWLFOH FRXQWHUV PD\ FRXQW ZDWHU
GURSOHWV DQG DLU EXEEOHV DV SDUWLFXODWH FRQWDPLQDWLRQ
1RWH $PHULFDQ 6RFLHW\ IRU 7HVWLQJ DQG
0HDVXUHPHQW KDV GHYHORSHG ³$670
'´³6WDQGDUG 7HVW 0HWKRG IRU 6L]LQJ DQG
&RXQWLQJ 3DUWLFOHV LQ /LJKW DQG 0LGGOH 'LVWLOODWH
)XHOV E\ $XWRPDWLF 3DUWLFOH &RXQWHU´ 7KLV WHVW
SURFHGXUH ZDV GHYHORSHG LQ WR FRXQW DQG
PHDVXUH WKH VL]H RI GLVSHUVHG GLUW SDUWLFOHV ZDWHU
GURSOHWV DQG RWKHU SDUWLFOHV LQ ' DQG ' GLHVHO
IXHOV ZKHQ WKH VSHFLILHG SDUWLFOH FRXQWHU LV XVHG
³$670 '´ LV DOVR DSSOLFDEOH WR ELRGLHVHO IXHOV
&OHDQOLQHVV 6WDQGDUGV IRU )LOO
)OXLGV
&DW UHFRPPHQGV WKDW PDFKLQH V\VWHPV EH
PDLQWDLQHG DW WKH IDFWRU\ GHILQHG IOXLG FOHDQOLQHVV
WDUJHWV
&DW KDV HVWDEOLVKHG PLQLPXP IOXLG FOHDQOLQHVV WDUJHWV
IRU IXHOV DQG ILOO RLOV DQG IRU HQJLQHV EHIRUH WKH\ UHWXUQ
WR ZRUN DIWHU PDLQWHQDQFH )OXLGV ILOOHG LQWR HQJLQH ILOO
WDQNV DUH UHFRPPHQGHG WR EH DW WKH WDUJHW OHYHOV
SURYLGHG LQ 7DEOH RU FOHDQHU :KHQ V\VWHP ILOO
IOXLGV DUH PDLQWDLQHG DW RU FOHDQHU WKDQ WKH ³,62´
FOHDQOLQHVV WDUJHWV FRQWDPLQDWLRQUHODWHG HIIHFWV ZLOO
EH UHGXFHG
7DEOH &DW 5HFRPPHQGHG )OXLG &OHDQOLQHVV 7DUJHWV &DW 5HFRPPHQGHG &OHDQOLQHVV 7DUJHWV IRU
)OXLGV 'LVSHQVHG LQWR (QJLQH )LOO WDQNV
)LOO RLOV
'LVSHQVHG IXHOV
³,62 ´
7KH IOXLGV VKRXOG PHHW RU H[FHHG WKH FOHDQOLQHVV UHTXLUHPHQWV RI WKH OLVWHG ,62 OHYHOV
)RU HQJLQH RLOV ZKHQ ILOWHULQJ WKH RLO SULRU WR GLVSHQVLQJ LQWR WKH HQJLQH WDQN XVH HQJLQH RLO ILOWHUV RI PLFURQ DEVROXWH HIILFLHQF\ DQG HQVXUH
WKDW WKH RLO WHPSHUDWXUH LV & ) RU KLJKHU 5HIHU WR WKH GHWDLOV JLYHQ LQ WKLV DUWLFOH
6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
7KH ³ILOO´ IOXLGV FOHDQOLQHVV WDUJHW LV QRW D IOXLG
³GHOLYHU\´ WDUJHW 7KH OHYHO RI FOHDQOLQHVV IRU GHOLYHUHG
IOXLGV LV QRW VSHFLILHG E\ &DW &XVWRPHUV FDQ ZRUN
ZLWK WKH GLVWULEXWRUV RU FDUULHUV WR GHWHUPLQH WKH
FOHDQOLQHVV OHYHO RI GHOLYHUHG IOXLGV +RZHYHU D PRUH
HIIHFWLYH DQG HFRQRPLF PHDQV WR DFKLHYH WKH ILOO
FOHDQOLQHVV WDUJHWV LV WR ILOWHU WKH IOXLGV SULRU WR ILOOLQJ
LQWR HQJLQH WDQNV DV FRPSDUHG ZLWK VSHFLI\LQJ
GHOLYHU\ IOXLG FOHDQOLQHVV OHYHO )ROORZ WKH JXLGHOLQHV
SURYLGHG LQ WKLV &RQWDPLQDWLRQ &RQWURO DUWLFOH
$OWKRXJK ROGHU WHFKQRORJ\ PDFKLQHV PD\ QRW EH DEOH
WR PDLQWDLQ WKH UHFRPPHQGHG FOHDQOLQHVV WDUJHWV RI
DGYDQFHG PRGHOV WKH VDPH FRQWDPLQDWLRQ FRQWURO
LQWHUYHQWLRQ PHDVXUHV VXFK DV ILOWUDWLRQ DQG
VXEVHTXHQW VHUYLFH SURFHGXUHV VKRXOG EH XVHG RQ DOO
&DW SURGXFWV
1RWH :KHQ SDUWLFOH FRXQWLQJ QHZ PXOWLYLVFRVLW\
HQJLQH RLOV WKHUH PD\ EH GLIILFXOWLHV DFKLHYLQJ
FOHDQOLQHVV WDUJHWV 2SWLFDO SDUWLFOH FRXQWHUV FDQQRW
GLVWLQJXLVK EHWZHHQ SDUWLFXODWH FRQWDPLQDQWV DQG
DGGLWLYHV 'R QRW XVH RSWLFDO SDUWLFOH FRXQW IRU WKH
HYDOXDWLRQ RI XVHG HQJLQH RLOV EHFDXVH VRRW OHYHOV
UHQGHU RLO WRR GDUN IRU RSWLFDO SDUWLFOH FRXQWHUV 6RRW
OHYHOV LQ XVHG HQJLQH RLOV VKRXOG EH HYDOXDWHG E\
XVLQJ 6ā2ā6 6HUYLFHV 2LO $QDO\VLV
:KHQ ILOWHULQJ HQJLQH RLO EHIRUH GLVSHQVLQJ LQWR WKH
HQJLQH WDQN RU ZKHQ HQJLQH RLO NLGQH\ ORRSLQJ
ILOWUDWLRQ LV GRQH IROORZ WKHVH UHFRPPHQGDWLRQV
8VH HQJLQH RLO ILOWHUV RI PLFURQV DEVROXWH
HIILFLHQF\ &DW 8OWUD +LJK (IILFLHQF\ /XEH ILOWHU LV
UHFRPPHQGHG &RQVXOW \RXU &DW GHDOHU IRU WKH
PRVW FXUUHQW SDUW QXPEHU
(QVXUH WKDW WKH WHPSHUDWXUH RI HQJLQH RLO LV &
) RU KLJKHU
&RQVXOW \RXU &DW GHDOHU IRU LQIRUPDWLRQ DQG VROXWLRQV
WR \RXU RLO DQG IXHO DQDO\VLV QHHGV
*HQHUDO &RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV RU 3UDFWLFHV
0DLQWDLQLQJ D ORZ FRQWDPLQDWLRQ OHYHO FDQ UHGXFH
GRZQ WLPH DQG FDQ FRQWURO WKH PDLQWHQDQFH FRVW RI
WKH HQJLQH 7KH SURGXFWLYH OLIH DV ZHOO DV WKH
UHOLDELOLW\ RI FRPSRQHQWV DQG IOXLG V\VWHPV LV RIWHQ
LQFUHDVHG DV D UHVXOW RI SURSHU FRQWDPLQDWLRQ FRQWURO
SUDFWLFHV
7KH IROORZLQJ DUH JHQHUDO JXLGHOLQHV IRU FRQWUROOLQJ
FRQWDPLQDQWV
5HIHU WR WKH 5HFRPPHQGDWLRQV IRU )XHO 6\VWHPV
LQ WKLV FKDSWHU IRU UHFRPPHQGHG IXHO FOHDQOLQHVV
OHYHOV DQG JXLGHOLQHV
5HIHU WR WKH HQJLQH 2SHUDWLRQ DQG 0DLQWHQDQFH
0DQXDO IRU WKH UHTXLUHG PDLQWHQDQFH IRU DOO HQJLQH
IOXLGV
:KHQ \RX DGG RLO WR DQ HQJLQH XVH HQJLQH RLO
ILOWHUV RI PLFURQV DEVROXWH HIILFLHQF\ (QVXUH
WKDW WKH RLO WHPSHUDWXUH LV & ) RU KLJKHU
3HUIRUP VFKHGXOHG 6ā2ā6 6HUYLFHV 2LO $QDO\VLV IRU
FRQWDPLQDWLRQ LQ RUGHU WR PDLQWDLQ WKH
UHFRPPHQGHG ,62 FOHDQOLQHVV OHYHO RI ILOO DQG
PDFKLQH IOXLGV 5HIHU WR WKH 6ā2ā6 2LO $QDO\VLV
VHFWLRQ LQ WKLV 6SHFLDO 3XEOLFDWLRQ 7KH SDUWLFOH
FRXQW DQDO\VLV FDQ EH SHUIRUPHG E\ \RXU &DW
GHDOHU 3DUWLFOH FRXQW FDQ EH FRQGXFWHG GXULQJ WKH
VFKHGXOHG 6ā2ā6 6HUYLFHV 2LO $QDO\VLV IRU WKH
FRPSDUWPHQW ([WUD RLO VDPSOHV DUH QRW UHTXLUHG
IRU WKH SDUWLFOH FRXQW VDPSOLQJ
8VH RQO\ FRRODQWV WKDW DUH UHFRPPHQGHG E\ &DW
IRU \RXU PDFKLQH )ROORZ WKH UHFRPPHQGHG
PDLQWHQDQFH SURFHGXUH IRU WKH FRROLQJ V\VWHP LQ
WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO IRU \RXU
PDFKLQH
0DLQWDLQ WKH HQJLQH DLU ILOWHUV DQG DLU LQWDNH V\VWHP
WR DYRLG XQZDQWHG FRQWDPLQDQW LQJUHVVLRQ
)ROORZ FRQWDPLQDWLRQ FRQWURO SUDFWLFHV IRU WKH VKRS
DUHD FRPSRQHQWPDFKLQH GLVDVVHPEO\ DUHDV
SDUWV VKRS WRROV WHVW VHWXSV WHVW DUHDV VWRUDJH
DUHDV DQG ZDVWH FROOHFWLRQ DUHDV .HHS
FRPSRQHQWV FOHDQ GXULQJ LQVSHFWLRQ DVVHPEO\
WHVWLQJ DQG ILOOLQJ HQJLQHV ZLWK FOHDQ IOXLGV *RRG
SUDFWLFHV ZLOO HQKDQFH FRPSRQHQW OLIH DQG UHGXFH
GRZQWLPH DVVRFLDWHG ZLWK FRQWDPLQDQWV <RXU &DW
GHDOHU FDQ SURYLGH GHWDLOV RQ SURSHU FRQWDPLQDWLRQ
SURFHVVHV DQG SUDFWLFHV
)ROORZ FRQWDPLQDWLRQ FRQWURO SUDFWLFHV IRU WKH
ZRUNSODFH DQG IRU WKH ZRUNVLWH 0DLQWDLQLQJ FOHDQ
RLO ILOO IOXLGV VDYHV WLPH DQG HIIRUW DQG HQVXUHV WKDW
ILOO IOXLGV DUH DW WKH SURSHU FOHDQOLQHVV OHYHOV
8VH SURSHUO\ GHVLJQHG DQG PDLQWDLQHG EXON
VWRUDJH IOXLGV WDQNV
3URWHFW WKH IOXLGV VWRUDJH WDQNV IURP GLUW DQG ZDWHU
HQWU\ E\ XVLQJ P RU OHVV DEVROXWH HIILFLHQF\
EUHDWKHUV ZLWK WKH DELOLW\ WR UHPRYH ZDWHU
.HHS WKH DUHDV DURXQG WKH WDQNV ILOOHU QHFNV FOHDQ
RI GHEULV DQG ZDWHU
'UDLQ WKH VWRUDJH WDQNV IURP ZDWHU DQG VHGLPHQWV
IUHTXHQWO\ 7KH GUDLQLQJ VFKHGXOH GHSHQGV RQ XVH
RI SURSHU LQOHW DQG RXWOHW ILOWHUV WKH XVH RI P
EUHDWKHUV ZLWK WKH DELOLW\ WR UHPRYH ZDWHU DQG
IROORZLQJ UHFRPPHQGHG FRQWDPLQDWLRQ FRQWURO
6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
SUDFWLFHV %DVHG RQ WKH FRQWDPLQDWLRQ FRQWURO
SURJUDP IROORZHG DQGRU RQ WKH IXHO VXSSOLHU
UHFRPPHQGDWLRQV WKH VWRUDJH WDQN GUDLQLQJ
VFKHGXOH PD\ EH DV IUHTXHQW DV GDLO\ XQWLO QR
ZDWHU LV SUHVHQW DQG WKHQ FDQ EH H[WHQGHG WR
ORQJHU SHULRGV
,QVWDOO DQG PDLQWDLQ D SURSHUO\ GHVLJQHG DQG
JURXQGHG ILOWUDWLRQ V\VWHP )LOWUDWLRQ VKRXOG LQFOXGH
DW WKH HQWU\ DQG DW WKH GLVSHQVLQJ SRLQW
&RQWLQXRXV EXON ILOWUDWLRQ PD\ EH UHTXLUHG WR
HQVXUH WKDW GLVSHQVHG RLOV PHHW WKH FOHDQOLQHVV
WDUJHW
&RYHU SURWHFW DQG HQVXUH FOHDQOLQHVV RI DOO
FRQQHFWLRQ KRVHV ILWWLQJV DQG GLVSHQVLQJ QR]]OHV
1RWH %XON IXHO ILOWUDWLRQ XQLWV DUH DYDLODEOH WKURXJK
\RXU &DW GHDOHU 3URSHU PDLQWHQDQFH SUDFWLFHV RI WKH
EXON ILOWUDWLRQ V\VWHPV DUH DYDLODEOH WKURXJK \RXU &DW
GHDOHU
&RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV IRU )XHOV
)XHOV RI ³,62 ´ FOHDQOLQHVV OHYHO RU FOHDQHU
DV GLVSHQVHG LQWR WKH HQJLQH RU PDFKLQH IXHO WDQN
VKRXOG EH XVHG 5HGXFH SRZHU ORVV IDLOXUHV DQG
UHODWHG GRZQ WLPH RI HQJLQHV ZLOO UHVXOW 7KLV
FOHDQOLQHVV OHYHO LV LPSRUWDQW IRU QHZ IXHO V\VWHP
GHVLJQV VXFK DV &RPPRQ 5DLO LQMHFWLRQ V\VWHPV DQG
XQLW LQMHFWLRQ V\VWHPV ,QMHFWLRQ V\VWHP GHVLJQV XWLOL]H
KLJKHU IXHO SUHVVXUHV DQG WLJKW FOHDUDQFHV EHWZHHQ
PRYLQJ SDUWV LQ RUGHU WR PHHW UHTXLUHG VWULQJHQW
HPLVVLRQV UHJXODWLRQV 3HDN LQMHFWLRQ SUHVVXUHV LQ
FXUUHQW IXHO LQMHFWLRQ V\VWHPV PD\ H[FHHG SVL
&OHDUDQFHV LQ WKHVH V\VWHPV DUH OHVV WKDQ P $V D
UHVXOW SDUWLFOH FRQWDPLQDQWV DV VPDOO DV P FDQ
FDXVH VFRULQJ DQG VFUDWFKLQJ RI LQWHUQDO SXPS DQG
LQMHFWRU VXUIDFHV DQG RI LQMHFWRU QR]]OHV
:DWHU LQ WKH IXHO FDXVHV FDYLWDWLRQ FRUURVLRQ RI IXHO
V\VWHP SDUWV DQG SURYLGHV DQ HQYLURQPHQW ZKHUH
PLFURELDO JURZWK LQ WKH IXHO FDQ IORXULVK 2WKHU
VRXUFHV RI IXHO FRQWDPLQDWLRQ DUH VRDSV JHOV RU
RWKHU FRPSRXQGV WKDW PD\ UHVXOW IURP XQGHVLUDEOH
FKHPLFDO LQWHUDFWLRQV LQ WKH IXHOV SDUWLFXODUO\ LQ 8OWUD
/RZ 6XOIXU 'LHVHO 8/6' *HOV DQG RWKHU
FRPSRXQGV FDQ DOVR IRUP LQ ELRGLHVHO IXHO DW ORZ
WHPSHUDWXUHV RU LI ELRGLHVHO LV VWRUHG IRU H[WHQGHG
SHULRGV 7KH EHVW LQGLFDWLRQ RI PLFURELDO
FRQWDPLQDWLRQ IXHO DGGLWLYHV RU FROG WHPSHUDWXUH JHO
LV UDSLG ILOWHU SOXJJLQJ RI EXON IXHO ILOWHUV RU PDFKLQH
IXHO ILOWHUV
,Q RUGHU WR UHGXFH GRZQWLPH GXH WR FRQWDPLQDWLRQ
IROORZ WKHVH IXHO PDLQWHQDQFH JXLGHOLQHV $OVR IROORZ
WKH *HQHUDO &RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV RU 3UDFWLFHV JLYHQ DERYH LQ WKLV
&KDSWHU
8VH KLJKTXDOLW\ IXHOV SHU UHFRPPHQGHG DQG
UHTXLUHG VSHFLILFDWLRQV UHIHU WR WKH )XHO &KDSWHU LQ
WKLV 6SHFLDO 3XEOLFDWLRQ
)LOO PDFKLQH IXHO WDQNV ZLWK IXHOV RI ³,62 ´
FOHDQOLQHVV OHYHO RU FOHDQHU LQ SDUWLFXODU IRU
HQJLQHV ZLWK FRPPRQ UDLO DQG XQLW LQMHFWLRQ
V\VWHPV :KHQ \RX UHIXHO WKH PDFKLQH ILOWHU WKH
IXHO WKURXJK D P DEVROXWH ILOWHU %HWD XS
WR LQ RUGHU WR UHDFK WKH UHFRPPHQGHG
FOHDQOLQHVV OHYHO 7KLV ILOWUDWLRQ VKRXOG EH ORFDWHG
DW WKH GHYLFH WKDW GLVSHQVHV WKH IXHO WR WKH HQJLQH
RU PDFKLQH IXHO WDQN ,Q DGGLWLRQ ILOWUDWLRQ DW WKH
GLVSHQVLQJ SRLQW VKRXOG UHPRYH ZDWHU WR HQVXUH
WKDW IXHO LV GLVSHQVHG DW SSP ZDWHU RU OHVV
&DW UHFRPPHQGV WKH XVH RI EXON IXHO ILOWHU FRDOHVFHU XQLWV ZKLFK FOHDQ WKH IXHO RI ERWK
SDUWLFXODWH FRQWDPLQDWLRQ DQG ZDWHU LQ D VLQJOH
SDVV &DW RIIHUV KHDY\GXW\ ILOWHU FRDOHVFHU XQLWV
WR DFFRPPRGDWH IXHOLQJ UDWHV IURP WR JSP
JDOORQV SHU PLQXWH (QVXUH WKDW \RX XVH &DW$GYDQFHG (IILFLHQF\ )XHO
)LOWHUV &KDQJH \RXU IXHO ILOWHUV SHU UHFRPPHQGHG
VHUYLFH UHTXLUHPHQWV RU DV QHHGHG
'UDLQ \RXU ZDWHU VHSDUDWRUV GDLO\ SHU WKH
2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO RI \RXU
PDFKLQH
'UDLQ \RXU IXHO WDQNV RI VHGLPHQW DQG ZDWHU SHU
WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO RI \RXU
PDFKLQH RU VRRQHU DV IXHO FRQGLWLRQ LQGLFDWHV
,QVWDOO DQG PDLQWDLQ D SURSHUO\ GHVLJQHG EXON ILOWHU FRDOHVFHU ILOWUDWLRQ V\VWHP &RQWLQXRXV EXON
ILOWUDWLRQ V\VWHPV PD\ EH UHTXLUHG WR HQVXUH WKDW
GLVSHQVHG IXHO PHHWV WKH FOHDQOLQHVV WDUJHW
&RQVXOW \RXU &DW GHDOHU IRU DYDLODELOLW\ RI EXON
ILOWUDWLRQ SURGXFWV
&HQWULIXJDO ILOWHUV PD\ QHHG WR EH XVHG DV D SUH
ILOWHU ZLWK IXHO WKDW LV VHYHUHO\ FRQWDPLQDWHG ZLWK
JURVV DPRXQWV RI ZDWHU DQGRU ODUJH SDUWLFXODWH
FRQWDPLQDQWV &HQWULIXJDO ILOWHUV FDQ HIIHFWLYHO\
UHPRYH ODUJH FRQWDPLQDQWV EXW PD\ QRW EH DEOH WR
UHPRYH WKH VPDOO DEUDVLYH SDUWLFOHV UHTXLUHG WR
DFKLHYH WKH UHFRPPHQGHG ³,62´ FOHDQOLQHVV OHYHO
%XON ILOWHU FRDOHVFHUV DUH QHFHVVDU\ DV D ILQDO
ILOWHU LQ RUGHU WR DFKLHYH WKH UHFRPPHQGHG
FOHDQOLQHVV OHYHO
,QVWDOO GHVLFFDQW W\SH EUHDWKHUV RI P RU OHVV
DEVROXWH HIILFLHQF\ ZLWK WKH DELOLW\ WR UHPRYH ZDWHU
RQ EXON VWRUDJH WDQNV
)ROORZ SURSHU SUDFWLFHV RI IXHO WUDQVSRUWDWLRQ
)LOWUDWLRQ IURP WKH VWRUDJH WDQN WR WKH PDFKLQH
SURPRWHV WKH GHOLYHU\ RI FOHDQ IXHO WR PDFKLQH
WDQN )XHO ILOWUDWLRQ FDQ EH LQVWDOOHG DW HDFK
WUDQVSRUW VWDJH LQ RUGHU WR NHHS WKH IXHO FOHDQ
6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
&RYHU SURWHFW DQG HQVXUH FOHDQOLQHVV RI DOO
FRQQHFWLRQ KRVHV ILWWLQJV DQG GLVSHQVLQJ QR]]OHV
127,&(
,Q RUGHU WR PHHW H[SHFWHG IXHO V\VWHP FRPSRQHQW OLIH
PLFURQ F DEVROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV
UHTXLUHG IRU DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG
ZLWK FRPPRQUDLO IXHO V\VWHPV $OVR PLFURQ F DE
VROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV UHTXLUHG IRU
DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG ZLWK XQLW LQ
MHFWHG IXHO V\VWHPV )RU DOO RWKHU &DW GLHVHO HQJLQHV
PRVWO\ ROGHU HQJLQHV ZLWK SXPS OLQH DQG QR]]OH W\SH
IXHO V\VWHPV WKH XVH RI PLFURQ F DEVROXWH RU OHVV
VHFRQGDU\ IXHO ILOWUDWLRQ LV VWURQJO\ UHFRPPHQGHG
1RWH WKDW DOO FXUUHQW &DW GLHVHO HQJLQHV DUH IDFWRU\
HTXLSSHG ZLWK &DW $GYDQFHG (IILFLHQF\ PLFURQ F
DEVROXWH IXHO ILOWHUV
&RQVXOW \RXU ORFDO &DW GHDOHU IRU DGGLWLRQDO
LQIRUPDWLRQ RQ &DW GHVLJQHG DQG SURGXFHG ILOWUDWLRQ
SURGXFWV
6(%8
5HIHUHQFH ,QIRUPDWLRQ 6HFWLRQ
5HIHUHQFH 0DWHULDO
5HIHUHQFH ,QIRUPDWLRQ
6HFWLRQ
)XHO
5HIHUHQFH 0DWHULDOV
6SHFLDO 3XEOLFDWLRQ 6(15 ³,PSURYLQJ )XHO
6\VWHP 'XUDELOLW\´
6SHFLDO 3XEOLFDWLRQ 3(+3 ³)XHO
&RQWDPLQDWLRQ &RQWURO 'DWD 6KHHW´
L
5HIHUHQFH 0DWHULDO
6SHFLDO 3XEOLFDWLRQ 6(%' ³'LHVHO )XHOV DQG
<RXU (QJLQH´
³$670 ' 6WDQGDUG 6SHFLILFDWLRQ IRU
%LRGLHVHO )XHO %OHQG 6WRFN % IRU 0LGGOH
'LVWLOODWH )XHOV´
³(1 $XWRPRWLYH IXHOV )DWW\ DFLG PHWK\O
HVWHUV )$0( IRU GLHVHO HQJLQHV 5HTXLUHPHQWV
DQG WHVW PHWKRGV´
³$670 ' 6WDQGDUG 6SHFLILFDWLRQ IRU 'LHVHO
)XHO 2LO %LRGLHVHO %OHQG % WR % ´
³$670 ' 6WDQGDUG 6SHFLILFDWLRQ IRU 'LHVHO
)XHO 2LOV´ LQFOXGHV UHTXLUHPHQWV IRU % DQG ORZHU
ELRGLHVHO EOHQGV
³(1 $XWRPRWLYH IXHOV 'LHVHO 5HTXLUHPHQWV
DQG WHVW PHWKRGV´ LQFOXGHV UHTXLUHPHQWV IRU %
DQG ORZHU ELRGLHVHO EOHQGV
³(1 /LTXLG SHWUROHXP SURGXFWV 'HWHUPLQDWLRQ RI IDWW\ DFLG PHWK\O HVWHUV )$0( LQ
PLGGOH GLVWLOODWHV ,QIUDUHG VSHFWURVFRS\ PHWKRG´
³(1 )DW DQG RLO GHULYDWLYHV )DWW\ $FLG
0HWK\O (VWHUV )$0( 'HWHUPLQDWLRQ RI $FLG
9DOXH´
³$670 ' 6WDQGDUG 7HVW 0HWKRG IRU $FLG
1XPEHU RI 3HWUROHXP 3URGXFWV E\ 3RWHQWLRPHWULF
7LWUDWLRQ´
6SHFLDO 3XEOLFDWLRQ 5(+6 ³.QRZ <RXU
7UDFN7\SH 7UDFWRU &RROLQJ 6\VWHP´
³$670 ' 6WDQGDUG *XLGH IRU 0LFURELDO
&RQWDPLQDWLRQ LQ )XHOV DQG )XHO 6\VWHPV´
6SHFLDO 3XEOLFDWLRQ 6(%' ³.QRZ <RXU
&RROLQJ 6\VWHP´
³)DFWV <RX 6KRXOG .QRZ $ERXW 5HQHZDEOH )XHOV
(0$ (QJLQH 0DQXIDFWXUHU $VVRFLDWLRQ ´
6SHFLDO 3XEOLFDWLRQ 6(%' ³&RRODQW DQG
<RXU (QJLQH´
6SHFLDO 3XEOLFDWLRQ 3(*- ³*UHDVH 6HOHFWLRQ
*XLGH´
³(0$ 7HFKQLFDO 3RVLWLRQ RQ 8VH RI %LRGLHVHO
3RVLWLRQ 6WDWHPHQW (0$ (QJLQH 0DQXIDFWXUHU
$VVRFLDWLRQ ´
'DWDVKHHW 3(+- ³&DW '(2 0RQRJUDGH 0RQRJUDGH 'LHVHO (QJLQH 2LO IRU &DW VHULHV
GLHVHO HQJLQHV´
³,62 3HWUROHXP SURGXFWV )XHOV FODVV )
6SHFLILFDWLRQV RI PDULQH IXHOV´
6SHFLDO ,QVWUXFWLRQ 5(+6 ³*XLGHOLQHV IRU
+HDY\ )XHO 2LO (QJLQH´
60&6 &RGH 7KH IROORZLQJ SXEOLFDWLRQV DUH DYDLODEOH IRU RUGHU
WKURXJK \RXU &DWHUSLOODU GHDOHU
1RWH 7KH LQIRUPDWLRQ WKDW LV FRQWDLQHG LQ WKH OLVWHG
SXEOLFDWLRQV LV VXEMHFW WR FKDQJH ZLWKRXW QRWLFH
&RQVXOW \RXU ORFDO &DWHUSLOODU GHDOHU IRU WKH PRVW
FXUUHQW UHFRPPHQGDWLRQV
1RWH 5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ WKH UHVSHFWLYH
SURGXFW GDWD VKHHW DQG WR WKH DSSURSULDWH 2SHUDWLRQ
DQG 0DLQWHQDQFH 0DQXDO IRU SURGXFW DSSOLFDWLRQ
UHFRPPHQGDWLRQV
/XEULFDQWV &RRODQWV DQG *UHDVHV
'DWD VKHHWV VSHFLILFDWLRQV DQG UHFRPPHQGDWLRQV
IRU &DW OXEULFDQWV FRRODQWV DQG JUHDVHV DUH
DYDLODEOH WKURXJK \RXU &DW GHDOHU DQG DW WKH
IROORZLQJ ZHEVLWH
KWWSSDUWVFDWFRPSDUWVPDFKLQHIOXLGV
6SHFLDO 3XEOLFDWLRQ 3(:- ³)LOWHUV DQG
)OXLGV $SSOLFDWLRQ *XLGH´
6SHFLDO 3XEOLFDWLRQ 3(+- ³&DW )LOWHUV DQG
)OXLGV 7RROER[ 8SGDWH 'DWDVKHHW 6HW´
KWWSZZZWUXFNDQGHQJLQHPDQXIDFWXUHUVRUJ
DUWLFOHV
6(%8
5HIHUHQFH 0DWHULDOV
5HIHUHQFH 0DWHULDO
)LOWHUV
0LVFHOODQHRXV
)RU JHQHUDO &DW ILOWUDWLRQ SURGXFWV UHIHU WR WKH
IROORZLQJ ZHEVLWH
6SHFLDO 3XEOLFDWLRQ 3(%- ³&DWHUSLOODU 'HDOHU
&RQWDPLQDWLRQ &RQWURO &RPSOLDQFH *XLGH´
KWWSVFRPPHUFHFDWFRPHQFDWFRUSILOWHUV
6SHFLDO 3XEOLFDWLRQ 3(:- ³)LOWHUV DQG
)OXLGV $SSOLFDWLRQ *XLGH´
6SHFLDO 3XEOLFDWLRQ 3(+3 ³)XHO
&RQWDPLQDWLRQ &RQWURO´
6SHFLDO 3XEOLFDWLRQ 3(%- ³&DWHUSLOODU
&XVWRPHU &RQWDPLQDWLRQ &RQWURO &RPSOLDQFH
*XLGH´
6SHFLDO 3XEOLFDWLRQ 6(%8 ³&ROG :HDWKHU
5HFRPPHQGDWLRQV´
6ā2ā6 6HUYLFHV
6SHFLDO 3XEOLFDWLRQ 3('3 ³)OXLG
&RQWDPLQDWLRQ 7KH 6LOHQW 7KLHI´
6SHFLDO 3XEOLFDWLRQ 3(+- ³6ā2ā6 6HUYLFHV
'DWD 6KHHW´
6SHFLDO 3XEOLFDWLRQ $(&4 ³&DWHUSLOODU
3URGXFW /LQH %URFKXUH´
6SHFLDO 3XEOLFDWLRQ 3(+3 ³0DNLQJ WKH 0RVW
RI 6ā2ā6 6HUYLFHV´
6SHFLDO 3XEOLFDWLRQ 3(:- ³&DW )LOWHU DQG
)OXLG $SSOLFDWLRQ *XLGH´
6SHFLDO 3XEOLFDWLRQ 3(*- ³8QGHUVWDQGLQJ
6ā2ā6 5HSRUWV´
6SHFLDO 3XEOLFDWLRQ 3(&3 ³2QH 6DIH
6RXUFH´
6SHFLDO 3XEOLFDWLRQ 3(*- ³+RZ WR 7DNH D
*RRG 6ā2ā6 6DPSOH´
6SHFLDO 3XEOLFDWLRQ 1(1* ³&DWHUSLOODU
'HDOHU 6HUYLFH 7RRO &DWDORJ´
6SHFLDO 3XEOLFDWLRQ 3(*- ³5HSRUWLQJ
3DUWLFOH &RXQW E\ ,62 &RGH´
6SHFLDO 3XEOLFDWLRQ 3(&- ³&DW 6KRS
6XSSOLHV DQG 7RROV´ FDWDORJ
6SHFLDO 3XEOLFDWLRQ 3('- ³)XHO 6DPSOLQJ
*XLGH´
6SHFLDO 3XEOLFDWLRQ 6(15 ³7RUTXH
6SHFLILFDWLRQV´
6SHFLDO 3XEOLFDWLRQ 3('3 ³6ā2ā6 )OXLGV
$QDO\VLV &RUQHUVWRQH´
6SHFLDO 3XEOLFDWLRQ 6(15 ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ )XHO 6\VWHPV´ 3DFNDJH RI
6SHFLDO 3XEOLFDWLRQ 3(+3 ³8QGHUVWDQGLQJ
6ā2ā6 6HUYLFH 7HVWV´
6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ (QJLQHV´ 3DFNDJH RI 6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ 0DQDJLQJ )OXLG
&OHDQOLQHVV´ 3DFNDJH RI 6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ )LQDO 'ULYHV DQG
'LIIHUHQWLDOV´ 3DFNDJH RI 6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ 3RZHUVKLIW 7UDQVPLVVLRQV´
3DFNDJH RI 6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ &RPSRQHQW 5HPRYDO DQG
,QVWDOODWLRQ´ 3DFNDJH RI 6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\ +\GUDXOLFV´ 3DFNDJH RI
6SHFLDO 3XEOLFDWLRQ 6(%) ³,PSURYLQJ
&RPSRQHQW 'XUDELOLW\´ %R[HG VHW ,QFOXGHV RQH
HDFK RI WKH ³,PSURYLQJ &RPSRQHQW 'XUDELOLW\´
VHULHV
6(%8
5HIHUHQFH 0DWHULDOV
$GGLWLRQDO 5HIHUHQFH 0DWHULDO
6SHFLDO 3XEOLFDWLRQ 6(%' ³&DWHUSLOODU
3HUIRUPDQFH +DQGERRN´
$670 ' ³6WDQGDUG *XLGH IRU 0LFURELDO
&RQWDPLQDWLRQ LQ )XHOV DQG )XHO 6\VWHPV´
$GGLWLRQDO 5HIHUHQFH 0DWHULDO
6$( - ³&ODVVLILFDWLRQ´ 7KLV GRFXPHQW FDQ
QRUPDOO\ EH IRXQG LQ WKH 6$( KDQGERRN
6$( - ³'LHVHO )XHOV´ 7KLV GRFXPHQW FDQ EH
IRXQG LQ WKH 6$( KDQGERRN $OVR WKLV SXEOLFDWLRQ FDQ
EH REWDLQHG IURP \RXU ORFDO WHFKQRORJLFDO VRFLHW\
IURP \RXU ORFDO OLEUDU\ RU IURP \RXU ORFDO FROOHJH
6$( - ³1RPHQFODWXUH´ 7KLV GRFXPHQW FDQ
QRUPDOO\ EH IRXQG LQ WKH 6$( KDQGERRN
(QJLQH 0DQXIDFWXUHUV $VVRFLDWLRQ ³ (QJLQH )OXLGV
'DWD %RRN´
(QJLQH 0DQXIDFWXUHUV $VVRFLDWLRQ
7ZR 1RUWK /D6DOOH 6WUHHW 6XLWH &KLFDJR ,OOLQRLV 86$ KWWSZZZWUXFNDQGHQJLQHPDQXIDFWXUHUVRUJ
DUWLFOHV
)RU LQIRUPDWLRQ RQ WKH $PHULFDQ 3HWUROHXP ,QVWLWXWH
$3, HQJLQH RLO FDWHJRULHV FRQWDFW WKH $3, DW
/ 6WUHHW 1:
:DVKLQJWRQ '& 86$ KWWSZZZDSLRUJ
L
$GGLWLRQDO 5HIHUHQFH 0DWHULDO
60&6 &RGH 7KH ³6RFLHW\ RI $XWRPRWLYH (QJLQHHUV 6$(
6SHFLILFDWLRQV´ FDQ EH IRXQG LQ \RXU 6$( KDQGERRN
7KLV SXEOLFDWLRQ FDQ DOVR EH REWDLQHG IURP WKH
IROORZLQJ ORFDWLRQV ORFDO WHFKQRORJLFDO VRFLHW\ ORFDO
OLEUDU\ DQG ORFDO FROOHJH ,I QHFHVVDU\ FRQVXOW 6$( DW
WKH IROORZLQJ DGGUHVV
6$( ,QWHUQDWLRQDO
&RPPRQZHDOWK 'ULYH
:DUUHQGDOH 3$ 86$ 7HOHSKRQH 7KH ³$PHULFDQ 3HWUROHXP ,QVWLWXWH 3XEOLFDWLRQ 1R
´ FDQ EH REWDLQHG IURP WKH IROORZLQJ ORFDWLRQV
ORFDO WHFKQRORJLFDO VRFLHW\ ORFDO OLEUDU\ DQG ORFDO
FROOHJH ,I QHFHVVDU\ FRQVXOW $3, DW WKH IROORZLQJ
DGGUHVV
$PHULFDQ 3HWUROHXP ,QVWLWXWH
/ 6W 1:
:DVKLQJWRQ '& 86$ 7HOHSKRQH 7KH ,QWHUQDWLRQDO 2UJDQL]DWLRQ IRU 6WDQGDUGL]DWLRQ
,62 RIIHUV LQIRUPDWLRQ DQG FXVWRPHU VHUYLFH
UHJDUGLQJ LQWHUQDWLRQDO VWDQGDUGV DQG VWDQGDUGL]LQJ
DFWLYLWLHV ,62 FDQ DOVR VXSSO\ LQIRUPDWLRQ RQ WKH
IROORZLQJ VXEMHFWV WKDW DUH QRW FRQWUROOHG E\ ,62
QDWLRQDO VWDQGDUGV UHJLRQDO VWDQGDUGV UHJXODWLRQV
FHUWLILFDWLRQ DQG UHODWHG DFWLYLWLHV &RQVXOW WKH
PHPEHU RI ,62 LQ \RXU FRXQWU\
,QWHUQDWLRQDO 2UJDQL]DWLRQ IRU 6WDQGDUGL]DWLRQ
,62
UXH GH 9DUHPEp
&DVH SRVWDOH &+ *HQqYH 6ZLW]HUODQG
7HOHSKRQH )DFVLPLOH (PDLO FHQWUDO#LVRFK
:HE VLWH KWWSZZZLVRFK
(XURSHDQ FODVVLILFDWLRQV DUH HVWDEOLVKHG E\ WKH
&RXQVHLO ,QWHUQDWLRQDO 'HV 0DFKLQHV D &RPEXVWLRQ
&,0$& ,QWHUQDWLRQDO &RXQFLO RQ &RPEXVWLRQ
(QJLQHV &,0$& &HQWUDO 6HFUHWDULDW
/\RQHU 6WUDVVH )UDQNIXUW
*HUPDQ\
7HOHSKRQH )DFVLPLOH 6(%8
,QGH[ 6HFWLRQ
,QGH[
$
$GGLWLRQDO 5HIHUHQFH 0DWHULDO $IWHUPDUNHW 2LO $GGLWLYHV %
%LRGLHVHO $GGLWLRQDO PDLQWHQDQFH UHTXLUHPHQWV %LRGLHVHO 6SHFLILFDWLRQ )XHO 6\VWHP 'HSRVLWV 5HFRPPHQGDWLRQV IRU WKH 8VH RI %LRGLHVHO LQ
&DW 1RQURDG (QJLQHV 5HIHUHQFHG 'RFXPHQWV &
&KDUDFWHULVWLFV RI 'LHVHO )XHO &HWDQH 1XPEHU &ORXG 3RLQW *XPV DQG 5HVLQV /XEULFLW\ DQG /RZ 6XOIXU 'LHVHO /6' DQG
8OWUD /RZ 6XOIXU 'LHVHO 8/6' )XHO 0RLVWXUH &RQWHQW 2[LGDWLYH 6WDELOLW\ 7HVW 3RXU 3RLQW 6SHFLILF *UDYLW\ $3, *UDYLW\ 7KH 7KHUPDO 6WDELOLW\ DQG 2[LGDWLRQ 6WDELOLW\
RI )XHO 7KHUPDO 6WDELOLW\ 9LVFRVLW\ &ROG :HDWKHU /XEULFDQWV &RPPHUFLDO +HDY\'XW\ &RRODQW$QWLIUHH]H
DQG 6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH &RQWDPLQDWLRQ &RQWURO &OHDQOLQHVV 6WDQGDUGV IRU )LOO )OXLGV &RQWDPLQDWLRQ &RQWURO 5HFRPPHQGDWLRQV IRU
)XHOV 'HILQLQJ &RQWDPLQDWLRQ *HQHUDO &RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV RU 3UDFWLFHV 0HDVXULQJ &OHDQOLQHVV &RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ
6\VWHP 0DLQWHQDQFH $GGLQJ WKH 6&$ WR &RQYHQWLRQDO &RRODQW
$QWLIUHH]H DW ,QLWLDO )LOO $GGLQJ WKH 6&$ WR &RQYHQWLRQDO &RRODQW
$QWLIUHH]H )RU 0DLQWHQDQFH &OHDQLQJ WKH 6\VWHP RI +HDY\'XW\ &RRODQW
$QWLIUHH]H 5HF\FOLQJ &DW '($& &RRODQW 5HFRPPHQGDWLRQV *HQHUDO
0DLQWHQDQFH &RROLQJ 6\VWHP 6SHFLILFDWLRQV &UXGH )XHO 2LO '
'LHVHO (QJLQH $QWLIUHH]H&RRODQW '($& 'LHVHO ([KDXVW )OXLG '() )RU 8VH LQ
6&5HTXLSSHG HQJLQHV &KDUDFWHULVWLFV RI '() DQG 8UHD )OXLGV '() *XLGHOLQHV *HQHUDO ,QIRUPDWLRQ 8UHD 6ROXWLRQ 5HFRPPHQGDWLRQV IRU 0DULQH
(QJLQHV 'LHVHO )XHO 5HFRPPHQGDWLRQV 0DULQH
(QJLQHV DQG &HUWDLQ 6HULHV
6WDWLRQDU\ (QJLQHV 'LHVHO )XHO 5HFRPPHQGDWLRQV 7LHU &
0DULQH (QJLQHV 'LVWLOODWH 'LHVHO )XHO $IWHUPDUNHW )XHO $GGLWLYHV $OWHUQDWLYH )XHOV &ROG :HDWKHU $SSOLFDWLRQV
&DW 'LHVHO )XHO 6\VWHP &OHDQHU &DW 'LHVHO )XHO &RQGLWLRQHU &RQWDPLQDWLRQ &RQWURO 5HFRPPHQGDWLRQV IRU
)XHOV +HDY\ )XHO 2LO 5HVLGXDO )XHO %OHQGHG )XHO
5HQHZDEOH DQG $OWHUQDWLYH )XHOV (
(QJLQH 2LO &DW 'LHVHO (QJLQH 2LOV /XEULFDQW 5HFRPPHQGDWLRQV IRU (QJLQHV WKDW
8VH +HDY\ )XHO 2LO +)2 5HFRPPHQGDWLRQ IRU 7LHU (QJLQHV 6HOHFWLQJ D &RPPHUFLDO 2LO 6HYHUH $SSOLFDWLRQV 7RWDO %DVH 1XPEHU 7%1 DQG )XHO 6XOIXU
/HYHOV IRU &DW 6HULHV DQG & 6HULHV
'LHVHO (QJLQHV 7KDW 8VH 'LVWLOODWH )XHO RU
%LRGLHVHO
6(%8
,QGH[ 6HFWLRQ
7RWDO %DVH 1XPEHU 7%1 DQG )XHO 6XOIXU
/HYHOV IRU (QJLQHV 7KDW 8VH +HDY\ )XHO 2LO
+)2 ([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV ([WHQGHG /LIH &RRODQW &DW (/& &RPPHUFLDO ([WHQGHG /LIH &RRODQW ([WHQGHG /LIH &RRODQW &RROLQJ 6\VWHP
0DLQWHQDQFH &DW (/& &RROLQJ 6\VWHP &OHDQLQJ &DW (/& &RROLQJ 6\VWHP &RQWDPLQDWLRQ &DW (/& ([WHQGHU &KDQJLQJ WR &DW (/& 3URSHU $GGLWLRQV WR WKH &DW (/& ([WHQGHG
/LIH &RRODQW 5HF\FOLQJ &DW (/& ([WHQGHG /LIH ,QKLELWRU (/, &DW (/, 0DLQWHQDQFH &KDQJLQJ WR &DW (/, 0L[LQJ &DW (/, 0L[LQJ &DW (/, DQG &DW (/& +
+HDY\ )XHO 2LO 5HFRPPHQGDWLRQV IRU +HDY\ )XHO 2LO ,
,PSRUWDQW 6DIHW\ ,QIRUPDWLRQ /
/XEULFDQW ,QIRUPDWLRQ /XEULFDQW 6SHFLILFDWLRQV /XEULFDWLQJ *UHDVH &DW +LJK 6SHHG %DOO %HDULQJ *UHDVH &DW 0XOWLSXUSRVH *UHDVH &DW 0XOWLSXUSRVH 0DULQH *UHDVH &DW :KLWH $VVHPEO\ *UHDVH *UHDVH $SSOLFDWLRQ &KDUWV 0RGHUDWH $SSOLFDWLRQV 0
)
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO &ULWHULD IRU WKH (YDOXDWLRQ *XLGHOLQHV IRU WKH 8VH RI $ 3URYHQ /XEULFDQW
,Q 2WKHU (QJLQHV ,QWHUFKDQJLQJ 2SHUDWLQJ &RQGLWLRQV IRU WKH )LHOG
3HUIRUPDQFH (YDOXDWLRQ 5HVSRQVLELOLWLHV )RUHZRUG /LWHUDWXUH ,QIRUPDWLRQ 0DLQWHQDQFH 6DIHW\ )XHO ,QIRUPDWLRQ IRU 'LHVHO (QJLQHV 6WDUWLQJ $LGV )XHO 5HFRPPHQGDWLRQV )XHO 6SHFLILFDWLRQV *
*HQHUDO &RRODQW ,QIRUPDWLRQ $GGLWLYHV &RRODQW 7HUPLQRORJ\ *O\FRO :DWHU *HQHUDO )XHO ,QIRUPDWLRQ *HQHUDO 5HFRPPHQGDWLRQV DQG *XLGHOLQHV
*RYHUQRU 2LO 0DLQWHQDQFH 6HFWLRQ 5
5HUHILQHG %DVHVWRFN 2LOV 5HIHUHQFH ,QIRUPDWLRQ 6HFWLRQ 5HIHUHQFH 0DWHULDO $GGLWLRQDO 5HIHUHQFH 0DWHULDO )LOWHUV )XHO /XEULFDQWV &RRODQWV DQG *UHDVHV 0LVFHOODQHRXV 6ā2ā6 6HUYLFHV 5HIHUHQFH 0DWHULDOV 6
6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV 1HZ 6\VWHPV 5HILOOHG 6\VWHPV DQG
&RQYHUWHG 6\VWHPV 5HFRPPHQGHG 6DPSOLQJ ,QWHUYDO IRU 6ā2ā6
6HUYLFHV &RRODQW $QDO\VLV 6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV /HYHO 6ā2ā6 6HUYLFHV &RRODQW $QDO\VLV /HYHO 6ā2ā6 6HUYLFHV 2LO $QDO\VLV 6(%8
,QGH[ 6HFWLRQ
'HWHUPLQLQJ 2SWLPXP 2LO &KDQJH ,QWHUYDOV
,QFUHDVLQJ WKH 2LO &KDQJH ,QWHUYDO 2EWDLQLQJ 6ā2ā6 2LO 6DPSOHV 2LO 6DPSOLQJ ,QWHUYDO 6SHFLDOW\ /XEULFDQWV 6\QWKHWLF %DVHVWRFN 2LOV 7
7DEOH RI &RQWHQWV :
:DWHU6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH $GGLQJ WKH &DW 6&$ WR :DWHU DW WKH ,QLWLDO )LOO
$GGLQJ WKH &DW 6&$ WR :DWHU IRU 0DLQWHQDQFH
,QGH[ 6HFWLRQ
6(%8
3URGXFW DQG 'HDOHU ,QIRUPDWLRQ
1RWH )RU
SURGXFW LGHQWLILFDWLRQ SODWH ORFDWLRQV VHH WKH VHFWLRQ ³3URGXFW ,GHQWLILFDWLRQ
,QIRUPDWLRQ´ LQ WKH 2SHUDWLRQ DQG 0DLQWHQDQFH 0DQXDO
'HOLYHU\ 'DWH
3URGXFW ,QIRUPDWLRQ
0RGHO
3URGXFW ,GHQWLILFDWLRQ 1XPEHU
(QJLQH 6HULDO 1XPEHU
7UDQVPLVVLRQ
6HULDO 1XPEHU
*HQHUDWRU 6HULDO 1XPEHU
$WWDFKPHQW 6HULDO 1XPEHUV
$WWDFKPHQW ,QIRUPDWLRQ
&XVWRPHU (TXLSPHQW 1XPEHU
'HDOHU (TXLSPHQW
1XPEHU
'HDOHU ,QIRUPDWLRQ
1DPH
%UDQFK
$GGUHVV
'HDOHU
&RQWDFW
6DOHV
3DUWV
6HUYLFH
3KRQH
1XPEHU
+RXUV
&DWHUSLOODU
$OO 5LJKWV 5HVHUYHG
&$7 &$7(53,//$5 WKHLU UHVSHFWLYH ORJRV ³&DWHUSLOODU <HOORZ´ DQG WKH 32:(5 ('*( WUDGH
GUHVV DV ZHOO DV FRUSRUDWH DQG SURGXFW LGHQWLW\ XVHG KHUHLQ DUH WUDGHPDUNV RI &DWHUSLOODU DQG
PD\ QRW EH XVHG ZLWKRXW SHUPLVVLRQ