Neve DFC Manual

8/3/2019 Neve DFC Manual

1/153


2/153

')&*HPLQL8VHU0DQXDO ,VVXH

Table of Contents

*ORVVDU\RI7HUPV&DUG

$)8$OSKD'LVSOD\$XW(QJ;$XWRPDWLRQ0RGH

%DQNV'HVN6HWXS(YHQWV(QFRUH3OXV

)XQFWLRQ.H\*OLGH,FRQ

,QLWLDO6QDSVKRW,66/D\HUV/RJLFDWRU0$',0,260L[3DVV0L[3DVV7UHH0RQ)DF5DFN3DQ'HVLJQDWRUV

3DWK3OD\3DVV3URFHVVLQJ(OHPHQW

4XDG0DGL,,&DUG5HFRUG3DVV5RXWLQJ6DIHW\6QDSVKRW6365DFN

6\QF6RXUFH9LUJLQ7HUULWRU\:RUG&ORFN;63

,QWURGXFWLRQ6LJQDO3DWK&DSDELOLWLHV

3UHGXEV$X[LOLDU\6HQGV

%XVVLQJ0HWHULQJ0RQLWRULQJ5HFRUGHU&RQWURO

$XWRPDWLRQ6\VWHP3URFHVVLQJ/LPLWDWLRQV'HVN(GLW,20DQDJHU&RQVROH6HWXS)XQFWLRQDQG,QSXW2XWSXW3DWFKLQJ6XUURXQG6RXQG)DFLOLWLHV

$XWRPDWLRQ1RWHRQ5RXWLQJDQG0RQLWRULQJ

2


3/153


')&*HPLQL&RQVROH6XUIDFH4XDGVWULSV)XOO\$VVLJQDEOH7)70HWHUV

5RXWLQJDQG0HWHULQJ3DQHO&KDQQHO6WULS&KDQQHO)DGHU5RXWLQJ$XWRPDWLRQDQG3DWK&RQWURO

5RXWLQJ6HOHFWLRQDQG'LVSOD\3DWK6HOHFWLRQ

&KDQQHO$XWRPDWLRQDQG0RGH&RQWUROV&XWDQG6ROR.H\V

6LJQDO3URFHVVLQJDQG$X[LOLDU\&RQWURO0DVWHU4XDGVWULS5RXWLQJ7RQHDQG7DONEDFN3DQHO0DVWHU$XWRPDWLRQDQG0RQLWRULQJ3DQHO7ZLQ-R\VWLFN3DQHO6XUURXQG4XDGVWULS6XUURXQG0RQLWRULQJ3DQHO3(&'LUHFW3DQHO

(QFRUH3OXV:RUNVWDWLRQ2SWLRQDO3DQHOV

0&63DQHO*UDSKLF(TXDOLVHU3DQHO

6WDWXV3DQHO

*HWWLQJ6WDUWHG/RJJLQJLQWR(QFRUH&UHDWLQJDQHZ'HVN6HWXS

1XPEHURI6LJQDO3DWKV

6LJQDO3URFHVVLQJLQWKH&KDQQHOV6HWXSWKH)LOP6WHPV

3DWK3ODFHPHQW6DYHDQG$OORFDWH

&KHFNWKH)LOP2XWSXWV5RXWLQJ)LOPVWR2XWSXW3RUWV5RXWLQJ,QSXW3RUWVWR&KDQQHOV0RQLWRULQJWKH6XUURXQG0L[

8SGDWLQJWKH6WDWLF'HVN6HWXS6QDSVKRW

6LJQDO3DWKV&KDQQHOV7UDFNV%XVVHV

*URXSV

$X[LOLDULHV&XHV0DLQ2XWSXWV

)LOPV([WHUQDOV3UH'XE0DVWHUV

6\VWHP3DWKV

6(//LVWHQV7DONEDFN)LOP/LVWHQV

%DQN/D\HU6HOHFWLRQRQWKH)DGHU6WULSV

&RQVROH6HWXSIXQFWLRQ3DWK3ODFHPHQWLQ6HWXS

3


4/153


7XUER$OORFDWLRQ1RWHVRQ7XUER$OORFDWLRQ3DWK3URFHVV6ZLWFKLQJ

6XUURXQG6RXQG)DFLOLWLHV7KH6XUURXQG0RQLWRULQJ3DQHO7KH3(&'LUHFW3DQHO+RZWKH6XUURXQG6RXQG6\VWHP:RUNV6WHP&RQILJXUDWLRQ

6WHP5RXWLQJ3DQQLQJ&RQWUROV6XUURXQG0RQLWRULQJ

0RQLWRULQJWKH6WHPV

0RQLWRULQJ([WHUQDO0DFKLQHV&87DQG62/20DVWHU&RQWUROV6XUURXQG0RQLWRULQJ)RUPDWV6WXGLR0RQLWRULQJ

&DOLEUDWHG0RQLWRU/HYHO6XUURXQG0RQLWRU6RORDQG&XW

0RQLWRULQJ2WKHU6RXUFHV6XUURXQG3DQQLQJ

3DQQLQJZLWK/RJLFDWRUV3DQQLQJZLWK-R\VWLFNV

6XUURXQG0HWHULQJ7KH3(&'LUHFW3DQHO5HFRUGHU&RQWURO&RQWURO/LQNLQJ

6LJQDO3URFHVVLQJ(TXDOLVDWLRQ

(4%DQG$YDLODELOLW\

6KDSH6HWWLQJV'HIDXOW6HWWLQJV

2SWLRQDO*UDSKLF(TXDOLVHU3DQHO$VVLJQLQJ3DWKVWRWKH*UDSKLF(43DQHO

(4*UDSKLFDO'LVSOD\&OHDULQJWKH*UDSKLF(43DQHOWR'HIDXOWV$XWRPDWLRQRIWKH*UDSKLF(43DQHO

)LOWHU&RQWURO*URXSLQJ3DQQLQJ

3DQQLQJZLWK-R\VWLFNV,QVHUWV

&RPSUHVVRU/LPLWHU

*DWH([SDQGHU'\QDPLF5DQJH&RQWUROOHU

&RS\)XQFWLRQ&KDQQHO5DQJH

1RWHVRQ&RS\/RJLFDWRU)XQFWLRQ6XPPDU\

5HVHWWLQJ&RQWUROV$X[LOLDULHV

6KDUHG$X[LOLDULHV$X[LOLDU\&RQWURO*URXSLQJ

$VVLJQDEOH)DFLOLWLHV8QLW$)8IXQFWLRQ

4


5/153


,QSXW2XWSXW3DWFKLQJ,QSXW3DWFKLQJ0,26,QSXWV

2XWSXW3DWFKLQJ3DWFKLQJ)LOP,QVHUWVIRU3RVW'HFRGHDQG/W5W

0HWHULQJ8VLQJPHWHUGHVLJQVIURPWKHFRQVROHVXUIDFH6XUURXQG0HWHULQJ

:LOG0HWHUV

7RQH7DONEDFN7RURXWH7RQH7DONEDFNGHVWLQDWLRQV7RVHOHFW7RQHW\SH

7RLQMHFW7RQHDQG7DONEDFN

*DQJLQJ6ODYHVDQG6XE0DVWHU6ODYHV

3UH'XEVLQ*DQJV7RVHWXSD*DQJ6WUXFWXUH*DQJ0HPEHUOHGV7RLQWHUURJDWHDJDQJVWUXFWXUH7RVDYHWKH*DQJ6WUXFWXUH

*DQJ&87DQG62/2

/LQNLQJ/LQNVDQG$XWRPDWLRQ&RQILJXULQJ/LQNV/LQN7HPSODWH

7RVHOHFWWKHRWKHU/LQNPHPEHUV7R'HOHWHD/LQN6XVSHQGLQJ/LQNV

6SOLW&RQVROH2SHUDWLRQ

$XWRPDWLRQ2IIOLQH$XWRPDWLRQ

6ZLWFKLQJ$XWRPDWLRQ2QDQG2II7RVXVSHQGWKHDXWRPDWLRQV\VWHPIURPWKHFRQVROHVXUIDFH

&RQWUROVWKDWFDQFDQQRWEH$XWRPDWHG0RGH.H\V

)DGHU0RGH.H\

&XW0RGH.H\/RJLFDWRU0RGH.H\2Q0RGH.H\5RXWH0RGH.H\

0DVWHU$XWRPDWLRQ&RQWUROV)DGHU6WULS$XWRPDWLRQ&RQWUROV

0RGH.H\V$XWRPDWLRQ.H\V

2YHUYLHZRI$XWRPDWLRQ0RGHV

$XWRPDWLRQ6FRSH7RLQWHUURJDWHZKLFKFRQWUROVDUHLQ6FRSH6XVSHQGLQJ)DGHU&XWDQG'HVN6FRSH

7LPHFRGH'LVSOD\

0L[3DVV7UHHV

5


6/153


7LPHFRGH&RQVLGHUDWLRQVIRU0L[3DVVHV6DIHW\6QDSVKRW,QLWLDO6QDSVKRW

$XWRPDWLRQ(YHQWV6HWWLQJ$XWRPDWLRQ0RGHV$XWRPDWLRQ0RGHVDQGWKH0L[3DVV5HFRUG0RGHVDQG6WRS

0RGLILHUVWR$XWRPDWLRQ0RGHV,VRODWH3OD\/RFN5HFRUG

5HFRUGLQJ$XWRPDWLRQLQ/RFN5HFRUG7RXFK5HFRUG$XWR*OLGH

7ULPDQG$XWR7ULP7ULP$XWR7ULP&RDOHVFH7ULP

$XWR7RXFK

7R(QG7R(QG6DIHW\1HWV

7RXFK(QDEOH0DNLQJD0L[3DVV

$XWR.HHS0DQXDO.HHS

-R\VWLFN$XWRPDWLRQ&ROOHFW7RXFK

8VLQJ&ROOHFW7RXFK8VLQJ&ROOHFW7RXFK%XIIHUV0DNLQJD6FHQH&KDQJH

6DIHW\1HWV

8VLQJ6DIHW\1HWVIRUDXWRPDWLFSXQFKLQDQGRXW

7UDQVSRUW&RQWURO0&63DQHO

*URXSLQJ0DFKLQHV6HW)LOP0DFKLQH3RVLWLRQ6WDWXV,QGLFDWLRQ3OD\6WRS)DVW)RUZDUG

5HZLQG5HFRUG

6LQJOH3UHVV5HFRUG0&63DQHO2SWLRQV

6KXWWOHDQG-RJ6KXWWOH-RJ

*UDEELQJDQG6WRULQJ7LPHV

/RFDWHZLWKWKH0&63DQHO/RRS

&\FOH5HKHDUVH

(GLW7UDFN$UPLQJ

0DFKLQH6ROR0DFKLQH2IIVHW

6


7/153


$SSHQGL[$5RXWLQJ6WDQGDUG5RXWLQJ

5RXWLQJZLWKWKH8SSHUDQG/RZHU5RXWLQJ3DQHOV

7RVHOHFWWKHGHVWLQDWLRQSDWK7RVHOHFWWKHVRXUFHSDWKW\SH

5RXWLQJ3DWKVZLWKWKH3DWK$FFHVV.H\V

$SSHQGL[%0RQLWRULQJ3DWK5HTXLUHPHQWVIRU6WDQGDUG0RQLWRULQJ

/LVWHQV7DONEDFN6(/V

&RQWURO5RRP0RQLWRULQJ

6PDOO/RXGVSHDNHUV6WXGLR/RXGVSHDNHUV

7


8/153


*ORVVDU\RI7HUPV

&DUG

7KLVLVDSURFHVVLQJFRQWUROFDUGWKDWOLYHVLQWKHULJKWKDQGPRVWVORWLQWKH636UDFN,WKDQGOHVFRPPXQLFDWLRQVEHWZHHQWKHGLIIHUHQWSDUWVRIWKHV\VWHPDQGLVUHVSRQVLEOHIRULQLWLDWLQJWKHERRWVHTXHQFH

7KH636FRQWUROFDUGUHSODFHVWZR7UDQFRQFDUGVDQGWKH7UDQ6&6,FDUG,WFRQVLVWVRIDSRVVLEOHILYHWUDQVSXWHUVQDPHO\

7UDQ6&6,

)LOH6HUYHU

$VVLJQPHQWV

$XWRPDWLRQ

$OORFDWLRQ

$)8

$)8LVDQDEEUHYLDWLRQRI$VVLJQDEOH)DFLOLWLHV8QLW7KLVLVDQDUHDRIWKHFRQVROHWKDWFDQEHXVHGE\DQ\VLJQDOSDWKWRDOORZDGMXVWPHQWRIWKHIXOOVLJQDOSURFHVVLQJLQWKHSDWK

7KH$)8WDNHVWKHSODFHRIGHGLFDWHGFRQWUROVWKDWZRXOGQRUPDOO\EHRQWKHIDGHUVWULSV7KLVPHDQVWKHIDGHUVWULSVFDQKDYHDPLQLPDOVHWRIFRQWUROVZLWKRXWDIIHFWLQJWKHIXQFWLRQDOLW\RIWKHFRQVROH

7KH$)8SURYLGHVLQGLYLGXDOFRQWUROVIRUHDFKVLJQDOSURFHVVLQJIXQFWLRQ(4

ILOWHUVHWF

$OSKD'LVSOD\

7KHWHUPDOSKDRUDOSKDGLVSOD\UHIHUVWRWKHDOSKDQXPHULFGLJLWDOGLVSOD\VXVHGRQWKHFRQVROHVXUIDFH$OSKDGLVSOD\VXVHOHGDUUD\VWRVKRZWH[WDQGQXPEHUV

)RUH[DPSOHWKH$VVLJQDEOHDQG3DQ/RJLFDWRUVHDFKKDYHDQDVVRFLDWHGIRXUFKDUDFWHUDOSKDGLVSOD\

$XW(QJ;

7KLVLVSDUWRIWKH$XWRPDWLRQV\VWHPFRQWUDFWLRQRI$XWRPDWLRQ(QJLQH;

3UHYLRXVO\ZKHQ$XWRPDWLRQGDWDZDVZULWWHQDQGWKHWLPHOLQHVWRSSHGWKLVGDWDZDVVWRUHGRQWKH681FDUGDQGWKHQZULWWHQWRWKHFRQVROHKDUGGULYH7KLVFRXOGWDNHXSWLPHDVWKHIXOOEDQGZLGWKRIWKHFRPPXQLFDWLRQVZDVEHLQJXVHGZKHQWUDQVIHUULQJDQGZULWLQJWKLVDXWRPDWLRQ8VLQJ$XW(QJ;WKHGDWDLVKHOGLQWKH5$0RIWKH3&DQGRQO\ZULWWHQWRGLVFDWHLWKHUXVHUGHILQHGLQWHUYDOVHYHU\[SDVVHVRUZKHQWKHXVHUGHFLGHV7KLVVSHHGVXSWKHUHVSRQVHWLPHRIWKHFRQVROHDQGLPSURYHV6DYHDQG/RDGWLPHVRIDXWRPDWLRQ

$XWRPDWLRQ0RGH

7KLVUHIHUVWRWKHVWDWHVRIFRQWUROVWKDWDUHXVHGWRUHFRUGDQGUHSOD\FRQWUROPRYHVDJDLQVWWLPHFRGH7KHWZREDVLF$XWRPDWLRQ0RGHVDUH5HFRUGDQG3OD\DQGYDULDWLRQVRQWKHVHDUHXVHGWRSHUIRUPGLIIHUHQWIXQFWLRQV

&RQWUROVFDQDOVREHLQ,VRODWHPRGHZKLFKLVXVHGWRH[FOXGHWKHPIURPWKHDXWRPDWLRQV\VWHP

8


9/153


%DQNV

$VWKHQXPEHURIDXGLRSDWKVRQWKH')&*HPLQLPD\EHJUHDWHUWKDQWKHQXPEHURIDFWXDOIDGHUVWKHQSDWKVDUHDVVLJQHGWRWKHFRQVROHVXUIDFHXVLQJ/D\HUVDQG%DQNV7KHUHDUH%DQNVHDFKFRPSULVLQJRIOD\HUVRQHDFK

$%&'JLYLQJVHSDUDWHDQGGLVFUHHWOD\RXWV

'HVN6HWXS

$'HVN6HWXSLVDILOHWKDWFRQWDLQVWKHFXUUHQWFRQILJXUDWLRQRIWKHFRQVROH7KHLQIRUPDWLRQVWRUHGLQD'HVN6HWXSLV

7KHQXPEHURIVLJQDOSDWKVRIHDFKW\SHLHQXPEHURI&KDQQHOV7UDFNV

$X[HVHWF 7KHVLJQDOSURFHVVLQJDOORFDWHGWRHDFKVLJQDOSDWKDQGWKHFXUUHQW

VHWWLQJVIRUSURFHVVLQJSDUDPHWHUV 7KHXVHUQDPHVIRUVLJQDOSDWKV

7KHLQWHUQDOURXWLQJEHWZHHQVLJQDOSDWKVHJZKLFK&KDQQHOVDUHURXWHG

WRZKLFK7UDFNV

7KHURXWLQJEHWZHHQVLJQDOSDWKVDQGSK\VLFDOLQSXWVDQGRXWSXWVLH,2

SDWFKLQJ 7KHDVVLJQPHQWRIVLJQDOSDWKVWRWKHFRQVROHVXUIDFH

7KHFRQILJXUDWLRQRIWKH3UH'XEV

7KHFRQILJXUDWLRQRIWKH)LOP6WHPVLHZKLFK7UDFNVLQZKLFK6WHPV

:KLFKSDWKVDUHLQKLELWHGIURP6RORWKHDXWRPDWLRQV\VWHPDQGRUEHLQJ

DOORFDWHG

3DQGHVLJQDWLRQRI7UDFNVDQGPRQR*URXSV

7KHFXUUHQWFRQILJXUDWLRQRI*DQJVDQG/LQNV

(YHQWV

(YHQWVDUHFKDQJHVWRFRQWUROVHWWLQJVWKDWDUHUHFRUGHGDJDLQVWWLPHFRGHE\WKH

DXWRPDWLRQV\VWHP7KH\DUHUHFRUGHGLQWLPHFRGHRUGHUWRPDNHWKH(YHQW/LVW:KHQD0L[3DVVLVSOD\HGEDFNLWLVWKHVHWWLQJVLQWKH(YHQW/LVWWKDWDUHXVHG

WRDXWRPDWHWKHFRQWUROV(YHQWVPDNHXSWKHPDMRULW\RIWKHGDWDVWRUHGE\D0L[3DVV,QGLYLGXDO(YHQWVFDQEHPDQLSXODWHGGLUHFWO\XVLQJWKH(YHQW/LVWIXQFWLRQV(YHQWVDUHDOVRPDQLSXODWHGXVLQJWKHRIIOLQHDXWRPDWLRQIXQFWLRQV

(QFRUH3OXV

(QFRUH3OXVLVD3&EDVHGPRGXOHZLWKLQWKH')&*HPLQLWKDWLVXVHGLQFRQMXQFWLRQZLWKWKHFRQVROHVXUIDFHWRSURYLGHIXQFWLRQVIRUFRQILJXULQJDQGVHWWLQJXSWKHFRQVROHXVLQJVQDSVKRWVDQGDXWRPDWLQJWKHFRQVROH

&RQILJXUDWLRQIXQFWLRQVLQFOXGHVHWWLQJWKHWRQHIUHTXHQF\DQGYROXPHVHOHFWLQJWKHLQWHUQDOVDPSOHUDWHGHFLGLQJKRZWKHVRORV\VWHPRSHUDWHVDQGVRRQ&RQVROHVHWXSIXQFWLRQVLQFOXGHUDSLGSRUWURXWLQJVLPLODUWRXVLQJDSDWFKED\VHWWLQJKRZPDQ\SDWKVRIHDFKW\SHDUHWREHXVHGDSSO\LQJWKHVDPHVLJQDO

SURFHVVLQJIXQFWLRQVWRPXOWLSOHSDWKVHWF

6QDSVKRWVDUHXVHGWRUHFRUGWKHVHWWLQJVRIFRQWUROVIRUODWHUUHFDOO7KHQXPEHURIFRQWUROVDIIHFWHGE\D6QDSVKRWFDQEHFKDQJHGZLWK6QDSVKRW

6FRSH(QFRUH3OXVLVXVHGWRVWRUHPXOWLSOHOLVWVRI6QDSVKRWV(QFRUH3OXVSURYLGHVPDQDJHPHQWRIDXWRPDWLRQGDWDDQGDDXWRPDWLRQIXQFWLRQVVXFKDVODEHOOLQJXVHUVHOHFWHGWLPHFRGHSRLQWVPL[FRQIRUPLQJDQGHYHQWOLVWHGLWLQJ

9


10/153


)XQFWLRQ.H\

7KH)XQFWLRQ.H\VDUHWKHURZRINH\VDWWKHWRSRIWKH(QFRUHNH\ERDUGWKDWDUHPDUNHG)WR)DQGWKH\DFWDVVKRUWFXWVWRYDULRXVIXQFWLRQVDQGPHQXVZLWKLQ(QFRUH3OXV

$WDEOHRIWKHVHVKRUWFXWVLVVKRZQLQWKH(QFRUH3OXVPDQXDO

*OLGH

*OLGHLVDQDXWRPDWLRQIXQFWLRQ7KLVLVZKHQDFRQWLQXRXVO\YDULDEOHFRQWUROIDGHU/RJLFDWRUFRQWUROOLQJIUHTXHQF\HWFPRYHVRULVPRYHGVPRRWKO\WR

PDWFKWKH3OD\3DVV7KHUHDUHWKUHHW\SHVRI*OLGH

0DQXDO*OLGH

$XWR*OLGH

0DQXDO0DWFK

,FRQ

$QLFRQLVDVPDOOSLFWXUHWKDWUHSUHVHQWVDIXQFWLRQRUSURJUDPWKDWFDQEH

H[HFXWHG7KHUHLVXVXDOO\DVPDOOWH[WGHVFULSWLRQWKDWFODULILHVWKHRSHUDWLRQWKDWZLOOEHLQLWLDWHGE\DQLFRQ7KHUHDUHJHQHUDOO\WZRW\SHVRILFRQVSURJUDPLFRQVXVHGWRVWDUWFRPSOHWHDSSOLFDWLRQVDQGIXQFWLRQLFRQVXVHGWRVWDUWDIXQFWLRQRUDSSO\DQHIIHFW

3URJUDPLFRQVFDQEHIRXQGRQWKH:LQGRZV;3GHVNWRS3URJUDPLFRQVDUHGRXEOHFOLFNHGWRVWDUWWKHDVVRFLDWHGSURJUDP

)XQFWLRQLFRQVFDQEHIRXQGDVSDUWRIDQDSSOLFDWLRQ)XQFWLRQLFRQVRQO\QHHGWR

EHFOLFNHGRQFHVLQJOHFOLFNHGRUFOLFNHGWRXVHWKHP)RULQVWDQFHWKHUHDUHWZRVHWVRILFRQVRQWKHULJKWKDQGVLGHRIWKHPDLQ(QFRUHVFUHHQDQGDVLQJOHFOLFNRQRQHRIWKHPZLOOVWDUWWKHUHOHYDQWIXQFWLRQ

,QLWLDO6QDSVKRW,66

7KH,QLWLDO6QDSVKRW,66OLVWFRQWDLQVWKHLQLWLDOVWDWHRIDOOFRQWUROVZKLFKDUHQRWLQ,VRODWHZKHQWKHV\VWHPLVSXWLQWR3OD\RUZKLFKDUHWDNHQRXWRI,VRODWHZKLOHWKHV\VWHPLVLQ3OD\7KHUHLVDOVRDQRSWLRQLQ$XWRPDWLRQ3UHIHUHQFHV)LUVW0RGH&KDQJH8SGDWHV,66WKDWZLOOIRUFHWKH,QLWLDO6QDSVKRWWREH

XSGDWHGZLWKWKHFXUUHQWVHWWLQJIRUDFRQWUROZKHQLWLVWDNHQRXWRI,VRODWHIRUWKHILUVWWLPH7KH,QLWLDO6QDSVKRWVHWWLQJVDUHVWRUHGDVDXWRPDWLRQHYHQWVDWWKHEHJLQQLQJRID0L[3DVV

/D\HUV7KHFRQFHSWRIOD\HUVLVXVHGWRDOORZDGLJLWDOFRQVROHWRFRQWUROPRUHVLJQDOSDWKV&KDQQHOV7UDFNVHWFWKDQWKHUHDUHIDGHUVWULSVRQWKHFRQWUROVXUIDFH6ZLWFKLQJEHWZHHQOD\HUVLVLQVWDQWDQGUHGXFHVWKHVL]HRIDFRQVROHVRWKDWDOO

FRQWUROVDUHLQUHDFKDOOWKHWLPH

/RJLFDWRU

7KLVLVDSDWHQWHGWRXFKVHQVLWLYHURWDU\FRQWUROZLWKLQWHUQDOJUHHQOHGVWRLQGLFDWHFRQWUROYDOXHSRVLWLRQV$QLQWHUQDOUHGOHGLQGLFDWHVZKHQWKHORJLFDWRULV

EHLQJWRXFKHG.QREVHWWLQJVDUHHDVLO\YLVLEOHDWDJODQFHDQGZKHQDXWRPDWLRQPRYHVDUHUHSOD\HGWKHFRQWUROVJLYHWKHDSSHDUDQFHRIPRYHPHQW

10


11/153


0$',

$FURQ\PIRU0XOWLFKDQQHO$XGLR'LJLWDO,QWHUIDFH8SWRWUDFNVRIGLJLWDODXGLRDUHVHQW7[DQGUHFHLYHG5[XVLQJDVLQJOHSDLURIZLUHVHLWKHUXVLQJFRD[LDOFDEOHRURSWLFDOOLQNV

0,26$FURQ\PIRU0RGXODU,QSXW2XWSXW6\VWHP(DFK0,26UDFNFDQFRQVLVWRIXSWRLQWRWDORIWKHIROORZLQJPRGXOHVLQDQ\FRQILJXUDWLRQ

0LF/LQH0LF$0LF%DQG/LQH,QSXW

,QSXW/LQH,QSXWV

2XWSXW/LQH2XWSXWV

$(6,QSXWV2XWSXWV

7KHDXGLRIURPWKHUDFNLVFRQYHUWHGLQWR0DGLIRUKDQGOLQJE\WKH4XDG0DGL,,FDUG(DFKUDFNKDVDKHDGSKRQHVRFNHWDQGVWHUHRPRQLWRURXWSXWVDV/5;/5V

0L[3DVV

$0L[3DVVVWRUHVWKHGDWDIRURQHFRPSOHWHDXWRPDWLRQSDVV(DFK0L[3DVVFRQWDLQV

$Q(YHQW/LVWFRQWDLQLQJDQ,QLWLDO6QDSVKRW,66IROORZHGE\

$XWRPDWLRQ(YHQWV

$XWRPDWLRQ0RGHVDQG$XWRPDWLRQ6FRSHDVWKH\ZHUHZKHQWLPHFRGHVWRSSHGDWWKHHQGRIWKHSDVV

$/DEHO/LVW

$6DIHW\6QDSVKRW

0L[3DVV7UHH0L[3DVVHVDUHRUJDQLVHGLQD0L[3DVV7UHH7KH0L[3DVV7UHHVWRUHVWKHVWUXFWXUHRIGHSHQGHQFHEHWZHHQ0L[3DVVHVWKLVPHDQVWKDWLWVKRZVWKHRUGHULQZKLFK0L[3DVVHVZHUHFUHDWHGDQGWKHOLQHVRIUHYLVLRQXVHGWRFUHDWHHDFK0L[3DVV7KH0L[3DVV7UHHLVGLVSOD\HGJUDSKLFDOO\VRWKDW0L[3DVVGHSHQGHQFLHVDUHVKRZQFOHDUO\$0L[3DVV7UHHDOZD\VVWDUWVZLWK0L[3DVV

$0L[3DVV7UHHLVGLVSOD\HGJUDSKLFDOO\IRUVHOHFWLQJD0L[3DVVUHYLVLRQDVWKH3OD\3DVVRUIRUHGLWLQJWKH7UHH

0RQ)DF5DFN

6KRUWHQHGIRUPRI0RQLWRU)DFLOLWLHVUDFN7KLVLVKDUGZDUHWKDWDOORZVWKH

FUHDWLRQPRQLWRULQJDQGFRQWURORIXSWRZLGHILOPVWHPV

3DQ'HVLJQDWRUV

$SDQGHVLJQDWRULVXVHGWRGHWHUPLQHZKLFKSRUWLRQRIDSDQQHGVLJQDOZLOOEHUHFHLYHGE\D7UDFNEXVRU*URXS)RUH[DPSOH&KDQQHOLVURXWHGWR7UDFN

7UDFNDQGVRPHRWKHUGHVWLQDWLRQV7UDFNLVSDQGHVLJQDWHGDV0RQRLHWUXHPRQRDQG7UDFNLVSDQGHVLJQDWHGDV)URQW/HIW3DQQLQJRI&KDQQHOZLOOQRWDIIHFW7UDFNEHFDXVHLWLVDWUXHPRQRGHVWLQDWLRQ+RZHYHU7UDFNZLOORQO\UHFHLYHWKHSRUWLRQRI&KDQQHOIRU)URQW/HIWDFFRUGLQJWRWKHSDQQLQJRQ&KDQQHO

11


12/153


0RQR7KLVLVDQRUPDOPRQRSDWK7KHVLJQDOUHFHLYHG7UDFNRU*URXSZLOOQRWEHDIIHFWHGE\VXUURXQGSDQQLQJ$7UDFNGHVLJQDWHGDV0RQRZRXOGQRWQRUPDOO\EH

XVHGLQD)LOP6WHP

&HQWUH0RQR7KLVFDXVHVD7UDFNWRDFWDVDQRUPDOPRQRURXWLQJGHVWLQDWLRQLHXQDIIHFWHG

E\VXUURXQGSDQQLQJEXWLVURXWHGWRWKH&HQWUHILOPPRQLWRUZKHQXVHGLQDVWHP,IWKH&HQWUH0RQRGHVLJQDWRULVXVHGLQ6XUURXQG6RXQG0DQDJHUWKHQWKH7UDFNVLWLVDSSOLHGWRDUHDXWRURXWHGWRWKH&HQWUHILOPPRQLWRU7KLVFDQEHDSSOLHGWR*URXSVEXWRQO\KDVWKHVDPHHIIHFWDVQRUPDO0RQR

/HIWDQG5LJKW7KHVHDUHQRUPDOVWHUHROHIWOHJDQGULJKWOHJURXWLQJGHVWLQDWLRQV7KHVLJQDOUHFHLYHGE\D7UDFNRU*URXSLVRQO\DIIHFWHGE\OHIWULJKWSDQQLQJLHIURQWEDFNVXUURXQGOHIWULJKWDQGGLYHUJHQFHFRQWUROVKDYHQRHIIHFW7KHVHVKRXOGEHXVHGZKHQ6WHUHRLVVHOHFWHGIRU)LOPSDWKVLQWKH'HVN(GLW&RQILJSDJH

)URQW&HQWUH)URQW/HIWDQG)URQW5LJKW

7KHVHDUHWKHVXUURXQGGHVWLQDWLRQVFRUUHVSRQGLQJWRWKHIURQWVSHDNHUV)URQW&HQWUHLVRIWHQIHGGLUHFWO\E\GLDORJXHWRORFNGLDORJXHWRWKHVFUHHQ

6XUURXQG0RQR

7KLVSDQQLQJGHVWLQDWLRQKDVWZRGLIIHUHQWXVHV,Q/&56IRUPDWLWLVWKHSDQQLQJGHVWLQDWLRQIRUUHDUVXUURXQG,QZLGHUIRUPDWVDQGLWLVWKHGHVWLQDWLRQFRUUHVSRQGLQJWRWKHVXEZRRIHU

6XUURXQG/HIWDQG6XUURXQG5LJKW7KHVHDUHWKHSDQQLQJGHVWLQDWLRQVIRUWKHUHDUOHIWDQGULJKWVSHDNHUV7KHVHDUHQRUPDOO\RQO\XVHGZLWKWKHZLGHIRUPDWVDQG

6XUURXQG&HQWUH7KLVLVWKHUHDUFHQWUHGHVWLQDWLRQLHRSSRVLWHIURQWFHQWUHXVHGE\WKHIRUPDWDOVRNQRZQDV6XUURXQG(;

,QQHU/HIWDQG,QQHU5LJKW7KHVHDUHSDQQLQJGHVWLQDWLRQVWKDWVLWEHWZHHQ)URQW/HIW)URQW&HQWUHDQG)URQW5LJKW)URQW&HQWUHWRSURYLGHDVPRRWKHULPDJHDFURVVWKHIURQW7KHVHDUHQRUPDOO\RQO\XVHGZLWKIRUPDW

3DWK

3DWKRUVLJQDOSDWKLVWKHWHUPXVHGWRGHVFULEHDGLVFUHWHSDUWRIWKHVLJQDOIORZ

WKURXJKWKHFRQVROHWKDWKDVDGLVWLQFWLQSXWDQGRXWSXWHLWKHUWRWKHRXWVLGHZRUOGRUWRDQRWKHUSDWK,QDQDQDORJXHFRQVROHWKHUHLVDIL[HGQXPEHURI

VLJQDOSDWKVDQGWKH\DUHKDUGZLUHGLQWRGLIIHUHQWSDUWVRUPRGXOHVLQWKHFRQVROH'LVDGLJLWDOV\VWHPDQGWKLVPDNHVLWDVVLJQDEOH7KLVPHDQVWKDWWKHQXPEHURISDWKVLVQRWIL[HGEXWLVVHOHFWHGDFFRUGLQJWRWKHWDVNLQKDQG7KLVLVGRQHXVLQJWKHXWLOLW\FDOOHG'HVN(GLWWKDWLVSDUWRI(QFRUH

3OXV7KHSDWKW\SHLQGLFDWHVWKHZD\WKDWDSDWKLVXVHG)RULQVWDQFH&KDQQHOVDUHWKHPDLQFRQVROHLQSXWVVLPLODUWRFKDQQHOPRGXOHVLQDQDQDORJXHFRQVROH

12


13/153


3OD\3DVV

7KH3OD\3DVVLVWKH0L[3DVVWKDWLVEHLQJXVHGWRSOD\EDFNDSUHYLRXVUHFRUGLQJRIDXWRPDWLRQPRYHVHYHQWV$Q\0L[3DVVFDQEHVHOHFWHGIURPWKHFXUUHQW0L[3DVV7UHHWREHWKH3OD\3DVV

3URFHVVLQJ(OHPHQW')&*HPLQLLVDGLJLWDOFRQVROHWKDWKDVDFHUWDLQDPRXQWRISURFHVVLQJSRZHUDYDLODEOH7KHSURFHVVLQJSRZHULVSURYLGHGE\WKH;63FDUGVLQWKH6\VWHPRU6365DFN7KHSURFHVVLQJSRZHULVDVVLJQHGLQSRUWLRQVDFFRUGLQJWRKRZWKH

FRQVROHLVFRQILJXUHGIRUWKHFXUUHQWVHVVLRQ(DFKVLJQDOSDWKUHTXLUHVDFHUWDLQDPRXQWRISURFHVVLQJSRZHU$VLJQDOSDWKFDQFRQWDLQDXGLRSURFHVVLQJVXFKDV(4RUG\QDPLFVDQGWKLVDOVRXVHVSURFHVVLQJSRZHU

$SURFHVVLQJHOHPHQWLVRQHRIWKHLQGLYLGXDOLWHPVRIDXGLRSURFHVVLQJDJDWHWKUHHEDQGHTXDOLVHUHWF7KHSURFHVVLQJHOHPHQWVDQGWKHSURFHVVLQJSRZHUUHTXLUHGDUHDVVLJQHGRUDOORFDWHGWRWKHVLJQDOSDWKVLQDGYDQFHRIEHLQJXVHG7KHV\VWHPZRUNVRXWKRZPXFKSURFHVVLQJSRZHUZRXOGEHUHTXLUHGIRUWKH

FRQILJXUDWLRQUHTXHVWHGDQGLIWKHUHLVWRRPXFKWKHQWKHH[FHVVLVUHMHFWHG$Q\WKLQJWKDWDSSOLHVFKDQJHVWRDVLJQDOLQDSDWKXVHVSURFHVVLQJ

4XDG0DGL,,&DUG

(DFK4XDG0DGL,,FDUGKDVSDLUVRIPDGLSRUWVHDFKSDLUFRQVLVWLQJRIRQH

7UDQVPLWSRUW7[DQGRQH5HFHLYHSRUW5[7KHVHSDLUVRISRUWVDUHXVXDOO\DFFHVVHGIURPWKHEDFNRIWKH636UDFNRUWKH\FDQEHDFFHVVHGIURPWKHIURQWRIWKHFDUGLWVHOIWKHXSSHUSRUWLQHDFKSDLULV5[

4XDG0DGLFDUGVEULQJPDGLVLJQDOVLQWRWKHV\VWHPDQGSODFHWKHGDWDRQWKHEDFNSODQHZKHUHWKH;63FDUGVFDQDFFHVVSURFHVVDQGWKHQUHWXUQWKLV

LQIRUPDWLRQ40,,FDUGVDUHDYDLODEOHLQWKUHHYHUVLRQVGHSHQGLQJRQWKHDPRXQWRI

DVVLJQDEOHGHOD\UHTXLUHGQRQHVHFVWRWDORUVHFVWRWDO7KHFDUGLVDOVRUHVSRQVLEOHIRU

$VVLJQLQJ'HOD\WRDVLJQDOHLWKHURQ,QSXWRU2XWSXW

*HQHUDWLQJPRVWLIQRWDOORIWKHPHWHUGDWDVHHQRQWKHPHWHUEULGJH

DQGIDGHUEHGV

'LWKHURQ2XWSXWV

7KHV\VWHPWLPLQJHQVXULQJDOORIWKH;63SURFHVVLQJFDUGVUXQLQV\QF

5HFRUG3DVV

$5HFRUG3DVVLVPDGHZKHQWKHWUDQVSRUWLVLQSOD\DQGFKDQJHVWRFRQWUROYDOXHVDUHUHFRUGHGDJDLQVWWLPHFRGH$WOHDVWRQHQHZDXWRPDWLRQHYHQWPXVW

EHFUHDWHGE\DFRQWUROLQDUHFRUGPRGH$QHZ0L[3DVVQXPEHULVFUHDWHGDQGGLVSOD\HGLQUHGRQWKH(QFRUH3OXVVFUHHQ

5RXWLQJ

7KLVUHIHUVWRPDNLQJHOHFWURQLFFRQQHFWLRQVEHWZHHQWKHGLIIHUHQWVLJQDOSDWKV

ZLWKLQWKHFRQVROH'LJLWDOFRQVROHVSURYLGHURXWLQJFRQWUROWKDWLVWDLORUHGIRUPL[LQJGRZQWRVXUURXQGVRXQGIRUPDWVLQILOPSRVWSURGXFWLRQ,QDGGLWLRQ

VWDQGDUGURXWLQJFRQWUROLVSURYLGHGWRJLYHWKHFRQVROHPD[LPXPIOH[LELOLW\DQGDOORZIRUQRQSRVWSURGXFWLRQDSSOLFDWLRQV

13


14/153


6DIHW\6QDSVKRW

$UHFRUGRIWKHVHWWLQJVRIDOOFRQWUROVWKDWFDQEHDXWRPDWHGUHJDUGOHVVRIWKHDXWRPDWLRQPRGHWKHFRQWUROLVLQ$6DIHW\6QDSVKRWLVWDNHQZKHQ1HZ0L[LVH[HFXWHGDQGZKHQWKHV\VWHPLVSXWLQWR3OD\)RU1HZ0L[WKH6DIHW\6QDSVKRW

LVVWRUHGZLWK0L[3DVV:KHQWKHV\VWHPLVSXWLQWR3OD\WKH6DIHW\6QDSVKRWLVWDNHQEXWLWLVQRW

VWRUHGXQOHVVWKH0L[3DVVLVVDYHGDIWHUWKHWUDQVSRUWKDVEHHQVWRSSHG7KH6DIHW\6QDSVKRWLVVWRUHGZLWKD0L[3DVVEXWVHSDUDWHO\IURPWKHDXWRPDWLRQHYHQWGDWD

6365DFN

7KHODUJHVWUDFNLQWKHV\VWHPUHVSRQVLEOHIRUWKHPDLQDXGLRSURFHVVLQJ

6\QF6RXUFH

7KLVLVWKHVRXUFHIRUWKHZRUGFORFNV\QFKURQLVDWLRQVLJQDOWKDWLVXVHGWRHQVXUHWKDWVDPSOHVRIGLJLWDODXGLRDUHVHQWDQGUHFHLYHGVLPXOWDQHRXVO\E\GLJLWDODXGLR

GHYLFHVWKDWDUHFRQQHFWHGWRJHWKHU

9LUJLQ7HUULWRU\

7KLVLVDQH[SUHVVLRQXVHGWRGHVFULEHSDUWVRID0L[3DVVRUDVHULHVRI0L[3DVVHVIRUZKLFKWKHUHLVQRDXWRPDWLRQGDWDDQGQRVHWWLQJVLQWKH,QLWLDO6QDSVKRW')&*HPLQLWDNHVDQ,QLWLDO6QDSVKRWRIDOOFRQWUROVWKDWFDQEHDXWRPDWHG7KLVPHDQVWKDW')&*HPLQLQHYHUKDVYLUJLQWHUULWRU\VRDQ\

SUREOHPVWKDWYLUJLQWHUULWRU\PD\FDXVHDUHSUHYHQWHG

:RUG&ORFN

7KLVLVDV\QFKURQLVDWLRQVLJQDOWKDWLVXVHGE\GLJLWDODXGLRHTXLSPHQW:RUGFORFNHQVXUHVWKDWWKHGLJLWDODXGLRLWVHOILVV\QFKURQLVHGVRWKDWDUWHIDFWVVXFKDV

GLVWRUWLRQFUDFNOHDQGGURSRXWVGRQRWRFFXU)RULQVWDQFHLIWKH')&*HPLQLLVUHFRUGLQJWRDGLJLWDOPXOWLWUDFNWDSHPDFKLQHWKHQWKH\PXVWEHV\QFKURQLVHGWRVHQGDQGUHFHLYHHDFKGLJLWDOVDPSOHRIDXGLRVLPXOWDQHRXVO\,IWKH\ZHUHQRWV\QFKURQLVHGRXWRISKDVHWKHQWKHWDSHPDFKLQHZRXOGUHFRUGWKHVDPSOHVLQFRUUHFWO\VRWKDWWKHUHFRUGLQJZRXOGQRWPDWFKWKHRXWSXWIURPWKHFRQVROH7KHUDWHDWZKLFKZRUGFORFNLVUXQQLQJVHWVWKHVDPSOHUDWHHJN+]IRUWKHGHYLFHVUHDGLQJWKHZRUGFORFN

7KLVVKRXOGQRWEHFRQIXVHGZLWKWLPHFRGHRUWLPHOLQHZKLFKLVXVHGWRNHHS

GHYLFHVOLQHGXSDWWKHVDPHWLPHSRVLWLRQ

;63

$FURQ\PIRU;WUD6LJQDO3URFHVVLQJ7KHVHDUHWKHPDLQSURFHVVLQJFDUGVLQWKH636UDFNDQGDUHUHVSRQVLEOHIRUDOOWKH$XGLRDQG'\QDPLFSURFHVVLQJ

14


15/153


,QWURGXFWLRQ

7KH')&*HPLQLLVWKHILUVWDOOGLJLWDOFRQVROHGHVLJQHGVSHFLILFDOO\IRUXVHLQILOPSRVWSURGXFWLRQDQGFDQEHWDLORUHGWRWKHUHTXLUHPHQWVRIXVHUVLQHYHU\DUHDRI

PL[LQJVRXQGIRUILOP,WFDQKDQGOHODUJHQXPEHUVRILQSXWVPL[HGGRZQWRDQ\FXUUHQWVXUURXQGIRUPDWZLWKLQDFRPIRUWDEOHSK\VLFDOOD\RXW

7KH')&*HPLQLKDVG\QDPLFDXWRPDWLRQRIDOOVLJQDOSURFHVVLQJFRQWUROVIXOO\

FRQILJXUDEOH'63IRUSURFHVVLQJDQGEXVVLQJIOH[LEOH,2SURYLVLRQDQGDQDVVLJQDEOHFRQWUROVXUIDFH

$OODVSHFWVRIIHDWXUHILOPPL[LQJDUHDGGUHVVHG

0XOWLIRUPDWVXUURXQGSDQQLQJ

)OH[LEOHPRQLWRUIRUPDWWLQJZLWKLQVHUWLRQRIPDWUL[SURFHVVRUV

0XOWLRSHUDWRUFDSDELOLW\XSWRWKUHHZLWKVHSDUDWHFRQVROH]RQHV

6KDUHGRUGLVFUHHWDX[LOLDU\DQGUHFRUGHUEXVVHV

0XOWLSOHFRQILJXUDWLRQVVHWXSVFDQEHFUHDWHGDQGPRGLILHGDQGVHWXSVDQGDXWRPDWLRQDUHIUHHO\WUDQVIHUDEOHEHWZHHQFRQVROHVRIVLPLODUVSHFLILFDWLRQ

6LJQDO3DWK&DSDELOLWLHV

7KHVLJQDOSURFHVVLQJLQWKH')&*HPLQLLVDVVLJQDEOHWRDQ\VLJQDOSDWK(DFKVLJQDOSDWKRQO\QHHGVWRKDYHWKHVLJQDOSURFHVVLQJLWUHTXLUHV7KHSURFHVVLQJDYDLODEOHLQFOXGHV

)XOOVWHUHRDQGVXUURXQGSDQQLQJ

2QHWRHLJKWEDQGVRIIXOO\SDUDPHWULF(4

2QHRUWZRKLJKDQGRUORZSDVVILOWHUV

'\QDPLFVLQWKHIRUPRI/LPLWHU&RPSUHVVRU([SDQGHU*DWH7KH

G\QDPLFVHOHPHQWVFDQKDYHDNH\LQSXWGHULYHGIURPDQ\RWKHUVLJQDOSDWKDQGVLGHFKDLQ(4 2QHRUWZRLQVHUWSRLQWVZLWKDQDORJXHDQGRUGLJLWDOLQWHUIDFLQJ

8SWR$X[LOLDU\6HQGVSHU]RQH(DFKDX[LOLDU\FDQEHPRQRRUVWHUHR

8SWRVHFRQGVRI,QSXW2XWSXWGHOD\KDUGZDUHGHSHQGHQW

7KUHHVHWVRI)LOP2XWSXWV

3UHGXEV

')&*HPLQLDOORZVXSWR3UHGXEVRIOLQNHGLQSXWSDWKVWREHGHILQHG$3UHGXELVWKHQDVVLJQHGWRRQHIDGHUVWULSWRFRQVHUYHVSDFH$3UHGXEFDQEHH[SDQGHG

LQWRWKH3UH'XE=RQHIRUDGMXVWLQJIDGHURIIVHWVDQGPDNLQJLQGLYLGXDOFKDQJHVWR(4G\QDPLFVHWF

$X[LOLDU\6HQGV

(DFKRSHUDWLQJ]RQHRIWKHFRQVROHSDUWLWLRQFDQIHHGXSWR$X[LOLDU\VHQGV

7KHUHFDQEHXSWRWKUHHSDUWLWLRQVDVGHWHUPLQHGE\WKHKDUGZDUHVSHFLILFDWLRQ$X[LOLDULHVFDQEHVKDUHGDFURVVWKHZKROHFRQVROHHJ$X[LOLDULHVFRXOGEHFRPPRQZLWK$X[LOLDULHVGLVFUHWHWRHDFKSDUWLWLRQ

15


16/153


%XVVLQJ

')&*HPLQLFDQSURYLGHXSWRUHFRUGEXVVHVZLWKDVVRFLDWHGWDSHUHWXUQV7KHVHDUHUHIHUUHGWRDV7UDFNVE\WKLVPDQXDOE\(QFRUHDQGE\GLVSOD\VRQWKHFRQVROHVXUIDFH7KH7UDFNVDUHXVHGWRIRUPXSWRVL[ILOPVWHPV(DFKILOPVWHP

FDQEHXSWRHLJKW7UDFNVZLGH7KHILOPVWHPVFDQEHVHWXSLQGLIIHUHQWVXUURXQGIRUPDWVVLPXOWDQHRXVO\

,QSXW&KDQQHOVIHDWXUHIXOOVXUURXQGSDQFDSDELOLW\DQGFDQEHURXWHGWRDQ\RUDOO7UDFNVVLPXOWDQHRXVO\,QWHOOLJHQWSDQFRQILJXUDWLRQDXWRPDWLFDOO\HVWDEOLVKHVWKHFRUUHFWSDQODZIRUHDFKVWHPWKDWD&KDQQHOFRQWULEXWHVWR

,ID&KDQQHOLVURXWHGWRDVLQJOHEXVRUEXVVHVWKDWKDYHQRVXUURXQGGHVLJQDWLRQWKHQSDQQHUVDUHGLVDEOHG,QGLYLGXDOSDQQLQJFRQWUROVFDQDOVREH

UHPRYHGDOWRJHWKHUDQGWKLVDOORZV&KDQQHOVWREHGRXEOHSXQFKHGWRWKHRXWSXWVZLWKQRSDQQLQJLQWKHFLUFXLW

0HWHULQJ

7KHPHWHUVDUHKLJKUHVROXWLRQ7)7RSHUDWLQJZLWK'LJLWDO3HDN98RU330

FKDUDFWHULVWLFV7KHPHWHUVFDQEHDVVLJQHGWRDQ\VLJQDOSDWKZLWKWKH0HWHU'HVLJQHUXWLOLW\LQ(QFRUH

0RQLWRULQJ

7KHVXUURXQGPRQLWRULQJV\VWHPFDQEHFRQILJXUHGIRUDQ\RIWKHFXUUHQW

VXUURXQGIRUPDWVRUFXVWRPLVHGIRUQRQVWDQGDUGPRQLWRULQJ$OVRXSWRWKUHHSOD\EDFNRQO\PDFKLQHVFDQEHPRQLWRUHGGLUHFWO\DQGHDFKPDFKLQHFDQKDYHXSWRWUDFNV6WDQGDUGVWXGLRFRQWUROURRPPRQLWRULQJLVDOVRDYDLODEOH

5HFRUGHU&RQWURO7KH7UDFNVFDQEHFRQILJXUHGWRIHHGXSWRVWHPUHFRUGHUV7KHVHDUHDFFHVVHGWKURXJKWKH3(&'LUHFW3DQHOZKLFKSURYLGHV

%XV7DSH3(&'LUHFWPRQLWRUVZLWFKLQJ

&XWRU6RORRIDQ\EXVLQWKHPRQLWRUV

6DIH5HDG\VZLWFKLQJDQG%LDVFRQWUROIRUWKHUHFRUGHUV

3DUDOOHOKDUGZDUHLQWHUIDFLQJDOORZVGXEEHUVPXOWLWUDFN$,56RUZRUNVWDWLRQVWREHFRQQHFWHGZLWKUHFRUGWDOOLHVIURPWKHPDFKLQHVGLVSOD\HGRQWKHSDQHOLIVXSSRUWHGE\WKHUHFRUGGHYLFH6LPLODUO\%XV7DSH3(&'LUHFWVZLWFKLQJPRQLWRUORJLFDFFRPPRGDWHVWKHUHTXLUHPHQWVRIYDULRXVW\SHVRIUHFRUGHU%RWK

PRQLWRUDQGELDVVZLWFKLQJFDQEH/LQNHGRU*URXSHG

$XWRPDWLRQ

7KHDXWRPDWLRQV\VWHPIRU')&*HPLQLLV(QFRUH3OXV,WSURYLGHVIXOOG\QDPLFDXWRPDWLRQRIDOOVLJQDOSURFHVVLQJIXQFWLRQV/LQHDUPRWRUIDGHUVDQG/RJLFDWRUFRQWUROVZLWKOHGLOOXPLQDWLRQDFWLYHO\VKRZD3OD\3DVV)DGHUVDQG/RJLFDWRUVDUHWRXFKVHQVLWLYH

$XWRPDWLRQIXQFWLRQVLQFOXGH 0DQXDODQG$XWR*OLGHPDWFKLQJIRUVPRRWKWUDQVLWLRQV

16


17/153


&ROOHFW7RXFKIDFLOLWDWHVVFHQHFKDQJHVE\DOORZLQJDUDQJHRIFRQWUROVWREHVHOHFWHGDQGWKHQDXWRPDWLRQFDQEHSUHYLHZHGDQGZULWWHQLQFRQWH[W

6DIHW\1HWVIRUUHVWULFWLQJWKHDFWLRQRIFRQWUROVWRDGHILQHGSHULRGRI

WLPHFRGHVXFKDVDSDUWLFXODUVFHQH

)DGHUWULPPLQJIRURIIVHWWLQJE\VPDOODPRXQWV

$XWRPDWLRQFRQIRUPLQJIRUDGGLQJPRYLQJRUUHPRYLQJVHFWLRQVZKHQ

DUHHOLVUHFXW

$XWRPDWLRQPRGHVFDQEHVHOHFWHGJOREDOO\EXWLQGHSHQGHQWO\LQHDFKRSHUDWLQJ

]RQHRULQGLYLGXDOO\IRUHDFKFRQWURO(QFRUHFDQZRUNZLWKDQ\RIWKHFRPPRQWLPHFRGHUDWHVDQGFDQDOVRGLVSOD\WLPHLQILOPIRRWDJH0L[3DVVHVFDQEHDXWRPDWLFDOO\VDYHGWRWKH(QFRUHKDUGGULYHDQGDGGHGWRDJUDSKLFDO0L[3DVV7UHH$WWKHHQGRIDVHVVLRQDQ\RUDOOSDVVHVFDQEHSHUPDQHQWO\VDYHGLQD

PXOWLOHYHOILOLQJV\VWHP0L[3DVVILOHVFDQEHH[SRUWHGRUDUFKLYHGWRDYDULHW\RIPHGLD

6\VWHP3URFHVVLQJ/LPLWDWLRQV

663 /LPLWHGWRSDWKV

(63 8SWRSDWKVRQDVLQJOHPL[VHWXSLQFOXGLQJQHFHVVDU\V\VWHPSDWKVLH)LOPV/6VHWF

;63 8SWRSDWKVRQDVLQJOHPL[VHWXSLQFOXGLQJQHFHVVDU\V\VWHPSDWKVLH)LOPV/6VHWF

'HVN(GLW

'HVN(GLWLQ(QFRUHLVDOZD\VWKHVWDUWLQJSRLQWIRUDQHZ'HVN6HWXSDQGFRQVROH

FRQILJXUDWLRQ,WLVDQ(QFRUHXWLOLW\WKDWLVXVHGIRUWKHEDVLF'HVN6HWXSZKLFKGHWHUPLQHVKRZPDQ\RIHDFKW\SHRISDWKLVDYDLODEOH$GGLWLRQDOIHDWXUHVRI'HVN(GLWDUHSODFLQJVLJQDOSURFHVVLQJHOHPHQWVLQHDFKSDWKDVVLJQLQJSDWKVWRWKHFRQVROHVXUIDFH'HVN'HVLJQHUSDJHDQGVHWWLQJXS3UHGXEV

,20DQDJHU

,20DQDJHULVXVHGIRUFRQILJXUDWLRQRILQSXWDQGRXWSXWSRUWVHJGLWKHUGHOD\65&HWFDQGDVVLJQLQJWKRVHSRUWVWRSDWKV,QSXW2XWSXWURXWLQJ

&RQVROH6HWXS)XQFWLRQDQG,QSXW2XWSXW3DWFKLQJ

6RPHRIWKHIXQFWLRQDOLW\RI'HVN(GLWDQG,20DQDJHULVGXSOLFDWHGXVLQJFRQWUROVRQWKHFRQVROHVXUIDFH7KH6(783NH\DFWLYDWHVWKUHHIXQFWLRQVZKLFKGXSOLFDWHVRPHRIWKH'HVN(GLWIXQFWLRQDOLW\

7XUER$OORFDWLRQDVVLJQLQJVLJQDOSURFHVVLQJHOHPHQWVWRSDWKV

3DWK3ODFHPHQWDVVLJQSDWKVWRWKHFRQVROHVXUIDFH

3DWK3URFHVV6ZLWFKLQJ336FKDQJHWKHRUGHURISURFHVVLQJ

HOHPHQWVLQDSDWK

7KH,13873$7&+DQG2873873$7&+NH\VDFWLYDWH,QSXWDQG2XWSXW

3DWFKLQJUHVSHFWLYHO\ZKLFKDOORZVWKHSRUWVDVVLJQHGWRSDWKVWREHFKDQJHG

ZLWKRXWXVLQJ,20DQDJHU

17


18/153


6XUURXQG6RXQG)DFLOLWLHV

7KH')&*HPLQLLVGHVLJQHGIRUXVHLQWKHILOPDQGSRVWSURGXFWLRQLQGXVWULHV6XUURXQG6RXQG)DFLOLWLHVGHVFULEHVDOOWKHIHDWXUHVIRUVHWWLQJXSURXWLQJDQGPRQLWRULQJIRUILOP6WHPV

$XWRPDWLRQ

$XWRPDWLRQSURYLGHVDQRYHUYLHZRIXVLQJDXWRPDWLRQRQWKH')&DQGGHVFULEHVWKHXVHRIWKHFRQVROHVXUIDFHIRUVHOHFWLQJDXWRPDWLRQPRGHV

)RUPRUHLQIRUPDWLRQRQ(QFRUHDXWRPDWLRQVHHWKHVHSDUDWH(QFRUH3OXV8VHU

0DQXDO

1RWHRQ5RXWLQJDQG0RQLWRULQJ

7KH5RXWLQJDQG0RQLWRULQJDSSHQGLFHVDWWKHHQGRIWKLVXVHUPDQXDOGHVFULEHWKHVWDQGDUGURXWLQJDQGVWHUHRPRQLWRULQJFDSDELOLWLHVRIWKH')&*HPLQLZKLFKDUHQRWVSHFLILFWRWKHILOPLQGXVWU\

18


19/153


')&*HPLQL&RQVROH6XUIDFH

4XDGVWULSV

7KH')&*HPLQLFRQVROHLVFRQVWUXFWHGIURPVWDQGDUGVHFWLRQVHDFKRIZKLFKLVIRXUFKDQQHOVWULSVZLGH(DFKRIWKHVHVHFWLRQVLVFDOOHGD&KDQQHO4XDGVWULS7KHUHDUHWZRVSHFLDO4XDGVWULSVFDOOHGWKH0DVWHU4XDGVWULSIRUJOREDO

RSHUDWLRQVURXWLQJPRQLWRULQJHWFDQGWKH6XUURXQG4XDGVWULSZLWKFRQWUROVIRUVXUURXQGPRQLWRULQJWUDFNDUPLQJHWF

$')&*HPLQLDOVRKDVDVHSDUDWH(QFRUHZRUNVWDWLRQDQGPD\KDYHWKHRSWLRQDO0DFKLQH&RQWURO3DQHO*UDSKLF(TXDOLVHU3DQHODQGRU6WDWXV3DQHO

)XOO\$VVLJQDEOH7)70HWHUV

19


20/153


7KH')&*HPLQLKDVW\SHVRIPHWHUGLVSOD\RQHIRUDERYHWKHIDGHUVDERYHOHIWDQGDGHGLFDWHG&HQWUHPHWHUSDQHODERYHULJKW

7KHIDGHUPHWHUVFDQEHVHWWRVKRZLQSXWVLJQDOOHYHOIRUIDGHUVDQGDOD\HURIVLJQDOVQRWRQWKHFRQVROHVXUIDFHSDWKLQIRUPDWLRQ(4FXUYH'\QDPLFSURFHVVLQJVXUURXQGURXWLQJDQGVLJQDOSODFHPHQWZLWKLQWKHVRXQGILHOG

7KH0DVWHUPHWHUSDQHOVKRZVLQGLYLGXDOVWHPURXWLQJDQGRXWSXWVSOXV*URXS$X[LOLDU\DQGWRWDO)LOPRXWSXWV

6WHUHR%DUJUDSK0HWHUVVKRZVWKHOHYHORIWKHOHIWDQGULJKWOHJVRIDVWHUHR

VLJQDO$PRQRVLJQDOZLOOEHVKRZQRQWKHOHIWEDUJUDSK7KHRYHUORDGEDUVKRZVKRZPXFKWKHVLJQDOLVRYHUORDGLQJ

$%06DQG3KDVH,QYHUW,QGLFDWRUVVKRZVWKHVWHUHRW\SHEHLQJPHWHUHG7KHSKDVHLQYHUWLQGLFDWRUVLOOXPLQDWHVHSDUDWHO\IRUWKHOHIWDQGULJKWOHJV7KH3RUW,QGLFDWRUVKRZVWKH,QSXW2XWSXWRU,QVHUWSRUWDVVRFLDWHGZLWKWKHSDWK

7KH&KDQQHO1XPEHU'LVSOD\VKRZVWKH6\VWHP1DPHRIWKHVLJQDOEHLQJPHWHUHG

3KDQWRP3RZHUDQG2YHUORDG,QGLFDWRUVVKRZZKHQ3KDQWRP3RZHULVDFWLYHRQD

PHWHUHGPLFOLQHVLJQDODQGZKHQWKHUHLVDVLJQDORYHUORDG0HWHU0RGH,QGLFDWLRQVKRZVWKHFXUUHQWO\VHOHFWHGPHWHULQJPRGH98330RU3($.

'\QDPLFV6FDOHDQG,QGLFDWRUVVKRZVZKLFK'\QDPLFHOHPHQWVDUHDFWLYHDQGWKHLUHIIHFWRQWKHVLJQDO

5RXWLQJDQG0HWHULQJ3DQHO7KHPHWHUVHOHFWLRQFRQWUROVDUHXVHGWRDVVLJQ

DSRUWWRHDFKRIWKH:LOGPHWHUVLQD0HWHU'HVLJQ1RWHWKDWWKH:LOGPHWHUVQHHGQRWQHFHVVDULO\EHSDUWRIWKHFXUUHQWO\GLVSOD\HG0HWHU'HVLJQ

7KH/RJLFDWRULVXVHGWRVHOHFWWKHSRUWWREHPHWHUHGRQWKHFRUUHVSRQGLQJ:LOG0HWHU

7KHQXPEHUNH\VDQGDVVRFLDWHGDOSKDGLVSOD\VRQWKH8SSHU5RXWLQJ6HFWLRQDUHXVHGWRVHOHFW

LQWHUQDOURXWLQJGHVWLQDWLRQV

7KHOHIWDQGULJKWGLUHFWLRQNH\VDUHFDOOHGQXGJHNH\VDQGDUHPDLQO\XVHGIRUVHOHFWLQJWKHURXWLQJGHVWLQDWLRQSDWKW\SH

7KHVHFWLRQLVDOVRXVHGIRU3DWK3URFHVV6ZLWFKLQJ336DQGWKH6(783NH\

DFWLYDWHV7XUER$OORFDWLRQ

20


21/153


&KDQQHO6WULS

(DFK&KDQQHO6WULSFDQEHXVHGWRFRQWUROXSWRIRXUVLJQDOSDWKV3UHGXEPDVWHUVFDQDOVREHDVVLJQHGWRD&KDQQHO6WULS

(DFK&KDQQHO6WULSSURYLGHVIXOOFRQWURORYHUWKHVLJQDOSURFHVVLQJDVVLJQHGWRHDFKSDWKDQGWKHVWHPURXWLQJRILQSXWV

&RQWUROVDUHDOVRSURYLGHGIRUDXWRPDWLRQDX[LOLDU\VHQGVFRQWUROOLQNLQJIDGHUJDQJLQJDQG3UHGXEH[SDQVLRQ

$JURXSRIHLJKW&KDQQHO6WULSVZKLFKPXVWXVHWZRZKROH

&KDQQHO4XDGVWULSVFDQEHGHVLJQDWHGDVWKH3UH'XE=RQH

7KH3UH'XE=RQHLVXVHGIRUH[SDQGLQJ3UHGXEVDQGIRUWKH$)8)XQFWLRQ

7KH$)8)XQFWLRQLVXVHGWRH[SDQGWKHVLJQDOSURFHVVLQJFRQWUROVIRUDVLQJOHSDWKDFURVVWKHHLJKWVWULSVLQWKH3UH'XE=RQH

&KDQQHO)DGHU

7KHIDGHUVDUHWRXFKVHQVLWLYHDQGXVHOLQHDUPRWRUGULYHVWRG\QDPLFDOO\LQGLFDWHSRVLWLRQ)DGHUSRVLWLRQVDUHUHDGDQGWUDQVODWHGGLJLWDOO\LQWRWKHDSSURSULDWHJDLQVHWWLQJVLQWKHSURFHVVLQJ

)DGHUVFDQEHGULYHQE\WKHG\QDPLFDXWRPDWLRQV\VWHPDQGDOVRKDYHWKHLUSRVLWLRQVVHWE\ORDGLQJD'HVN6HWXSVHWWLQJGHIDXOWVRUFDOOLQJDSDWKWRWKHVXUIDFH

7KHIDGHUVKDYH3)/VZLWFKLQJZKLFKRSHUDWHVIURPDQRYHUSUHVVDJDLQVWDVSULQJDIWHULQILQLW\KDVEHHQUHDFKHG7KLVLVRQO\UHOHYDQWLIWKH3)/EXVLVURXWHGWRVRPHVHSDUDWHVSHDNHUVXVLQJWKHV\VWHPSDWK/6RULIWKHFRQVROHLVQRWRSHUDWLQJZLWK6XUURXQG0RQLWRULQJQR)LOPSDWKV

21


22/153


5RXWLQJ$XWRPDWLRQDQG3DWK&RQWURO

5RXWLQJ6HOHFWLRQDQG'LVSOD\

7KH6WHP5RXWLQJNH\VDUHXVHGWRVHOHFWZKLFK6WHPWRURXWHWKHVLJQDOWRDQGZKLFK3DWKVZLWKLQWKH6WHPWRURXWHWR7KH6WHP5RXWLQJ'LVSOD\VKRZVZKLFKSDUWVRIZKLFK

6WHPVWKHVLJQDOLVURXWHGWR

7KHWULDQJXODUOHGVEHORZWKH6WHP5RXWLQJ'LVSOD\VKRZWKHZLGWKRIWKHFXUUHQWSDWK2QHZLOOLOOXPLQDWHIRUDPRQRSDWK

DQGWZRIRUDVWHUHRSDWK

:KHQD3UHGXELVRQWKHVXUIDFHWKHOHGVZLOOLOOXPLQDWHWRVKRZKRZPDQ\SDWKVDUHLQWKH3UHGXE

3DWK6HOHFWLRQ

7KHSDWK$FFHVVNH\VDUHXVHGIRUDYDULHW\RIVSHFLDOSXUSRVHV7KHSULPDU\XVHLVWRDFFHVVWKHIRXUVLJQDOSDWKV

ZKLFKDVVLJQHGWRWKHFKDQQHOVWULS7KHVHFRQGXVHLVIRUURXWLQJZKHUHD*URXSRU0DLQ3DWKDFFHVVNH\PD\EHKHOGGRZQZKLOHWKRVHRIWKH&KDQQHOVDUHSUHVVHG$VLPLODUSURFHGXUHLVXVHGWRURXWHWKH*URXSVWRWKH0DLQ

7KLVDFWLRQFDXVHVWKH&KDQQHORU*URXS3DWKDFFHVVNH\VWRLOOXPLQDWHDVORQJDVWKH*URXSRU0DLQNH\LVKHOG7KHODWWHUUHPDLQOLWWRFRQILUPVXEVHTXHQWURXWLQJ

7KH&KDQQHOWR*URXSURXWLQJFDQEHIRUZDUGLQWHUURJDWHGE\KROGLQJGRZQWKH&KDQQHONH\ZKHQWKHLOOXPLQDWLRQRIDOOEXWWKH*URXS0DLQ3DWKDFFHVVNH\VWRZKLFKLWLVURXWHGDUHH[WLQJXLVKHG

%\KROGLQJGRZQWKH$//NH\RQDVWULSDQGSUHVVLQJD3DWKDFFHVVNH\RQWKHVDPHVWULSWKDWOD\HUZLOOEHEURXJKWWRWKHVXUIDFHRIWKHFRQVROHIRUDOOFKDQQHOVWULSV

&KDQQHO$XWRPDWLRQDQG0RGH&RQWUROV

*$1*DQG/,1.DUHXVHGIRUVHWWLQJXSJURXSVRIFRQWUROVDFURVVVHSDUDWH&KDQQHO6WULSV6863(1'LVXVHGWRLVRODWHDFRQWUROIURPDOLQNHGJURXSVRWKDWLWVRIIVHWFDQEHFKDQJHG

3)/URXWHVWKHSUHIDGHUVLJQDOWRWKH$)/PL[ZKRVHRXWSXWDSSHDUVHLWKHUDWLWV

RZQLQWHUIDFHIRUDQH[WHUQDODPSOLILHUDQGORXGVSHDNHURURYHUULGLQJWKH0DLQ0RQLWRU2XWSXW

)$'(502'(DQG&8702'(GHWHUPLQHWKHDXWRPDWLRQPRGHRIWKHIDGHUDQG&87NH\DVVHOHFWHGZLWKWKH,62/$7(3/$


23/153


6LJQDO3URFHVVLQJDQG$X[LOLDU\&RQWURO

7KHIXQFWLRQRIWKH/RJLFDWRUVGHSHQGVRQWKHVHOHFWLRQPDGHZLWKWKH)XQFWLRQ6HOHFWLRQNH\VLQWKHPLGGOH%\

FRQYHQWLRQWKH/RJLFDWRUVDUHUHIHUUHGWRDV/RJLFDWRUWRSWR/RJLFDWRUERWWRP

(DFK/RJLFDWRUKDVDQDOSKDGLVSOD\DQGD02'(NH\DVVRFLDWHGZLWKLW

/RJLFDWRUVDUHWRXFKVHQVLWLYHDQGKDYHOHGLQGLFDWRUVWKDWLOOXPLQDWHWKHWRSRIWKH/RJLFDWRUWRVKRZWKHVHWWLQJ7KHFKDUDFWHUDOSKDGLVSOD\VKRZVWKHVHWWLQJ

RIWKHFXUUHQWSDUDPHWHUDVVLJQHGWRWKH/RJLFDWRU,WDOVRVKRZVZKDWSDUDPHWHULVDVVLJQHGWRWKH/RJLFDWRUZKHQD)XQFWLRQ6HOHFWLRQNH\LVSUHVVHGDQGKHOG

7KH02'(NH\LVXVHGIRUDXWRPDWLRQPRGHVDQGVFRSHDQGLQFRQMXQFWLRQZLWK21&/($5WRUHVHWDYDOXHWRLWVGHIDXOW

(DFKNH\KDVDOHGWRVKRZZKLFKIXQFWLRQVDUHDYDLODEOHDQGZKLFKLVFXUUHQWO\DFWLYH7KH3$*(NH\LVXVHGWRDFFHVVDGGLWLRQDOSDUDPHWHUVIRUVRPHRIWKHIXQFWLRQV

,WVOHGLOOXPLQDWHVJUHHQZKHQWKHDFWLYHIXQFWLRQKDVDVHFRQGVHWRISDUDPHWHUVDQGUHGZKHQWKH3$*(LVSUHVVHGWRDFFHVVWKRVHSDUDPHWHUV

7KH21&/($5NH\LVXVHGWRHQDEOHDQGGLVDEOHIXQFWLRQVDQGUHVHWYDOXHVWRGHIDXOWV7KH2102'(NH\LVIRUDXWRPDWLRQRIWKHRQRIIIXQFWLRQRQWKH21&/($5NH\

23


24/153


0DVWHU4XDGVWULS

7KHUHFDQEHXSWRWKUHH0DVWHU4XDGVWULSVLQD')&HDFKRIZKLFKSURYLGHVFRQWURORYHUDQ

RSHUDWRU]RQHSDUWLWLRQ

6RPHIXQFWLRQVVXFKDV7XUER$OORFDWLRQDUHFRQVROHZLGHRSHUDWLRQVWKDWFDQEHDFWLYDWHGIURPDQ\0DVWHU4XDGVWULS

1RWHWKDWWKH-R\VWLFN3DQHOPD\RUPD\QRWEHILWWHGLQWKH6XUURXQG4XDGVWULS

24


25/153


5RXWLQJ7RQHDQG7DONEDFN3DQHO

/RZHU5RXWLQJ6HFWLRQ5RXWLQJPRGHLVDFWLYDWHGZKHQDEXWWRQLVKHOGGRZQRQWKH8SSHU5RXWLQJ

6HFWLRQ

7KH/RZHU5RXWLQJ6HFWLRQWKHQGLVSOD\VDYDLODEOHVRXUFHVDQGDOORZVWKHPWREHURXWHGWRWKHGHVWLQDWLRQVHOHFWHGRQWKH8SSHU5RXWLQJ6HFWLRQ

7KH$)8NH\DFWLYDWHV$)80RGHZKHQWKHSDQHOLVXVHGWRVHOHFWWKHSDWKH[SDQGHGWRWKH$)8

7KHQXPEHUHGNH\VWRDUHDOVRXVHGIRUVHOHFWLQJWKHDFWLYHPHWHUGHVLJQZKHQWKH0(7(5'(6,*1NH\LVSUHVVHG

7RQH7DONEDFN6HFWLRQ7KHFXUUHQW'HVN6HWXSPXVWLQFOXGHD7DONEDFNSDWKIRUWKLVVHFWLRQWRZRUN7RQHDQGWDONEDFNFDQEHLQMHFWHGVHSDUDWHO\RUWRJHWKHU

7KH/66(/DQG/6NH\VDUHXVHGWRVHOHFWDQGWHPSRUDULO\URXWHDOWHUQDWLYHPRQRRUVWHUHRVRXUFHVWRWKH)LOPPRQLWRURXWSXWSDWKV

4XLFN.H\V6HFWLRQ&XUUHQWO\WKLVLVRQO\XVHGWRVHOHFWRQHRIWKHHLJKWGHVLJQVLQWKHORDGHG0HWHU

'HVLJQILOH

0DVWHU$XWRPDWLRQDQG0RQLWRULQJ3DQHO

0DLQ3DWK6HFWLRQ7KLVVHFWLRQLVPDLQO\XVHGWRJOREDOO\EULQJRQHRIWKHIRXUOD\HUVWRWKHVXUIDFH

,WLVDOVRXVHGLQFRQMXQFWLRQZLWKRWKHUSDUWVRIWKHFRQVROHIRUDUDQJHRIIXQFWLRQVLQFOXGLQJSDWFKPRGHVIRUUDSLGFKDQJHVWRLQSXWDQGRXWSXWURXWLQJIURPWKHVXUIDFH

0DVWHU$XWRPDWLRQ6HFWLRQ8VHGIRUVHWWLQJDXWRPDWLRQPRGHVJOREDOO\DQGFKDQJLQJRULQWHUURJDWLQJDXWRPDWLRQ

VFRSH

6WXGLR/RXGVSHDNHU6HFWLRQ8VHGWRFRQWUROWKHOHYHOVWDWXVDQGVRXUFHRIWKHVWXGLRORXGVSHDNHURXWSXWV

7KLVLVRQO\DSSOLFDEOHZKHQQRWXVLQJ6XUURXQG0RQLWRULQJ

&RQWURO5RRP6HFWLRQ8VHGWRFRQWUROWKHOHYHODQGVWDWXVRIWKHFRQWUROURRPVSHDNHURXWSXWV1RWH

WKDWWKHODUJHSRWFDQEHXVHGWRSURYLGHRYHUDOOOHYHOFRQWURORIWKHVXUURXQG

25


26/153


PRQLWRUVSHDNHUVEXWDOORWKHUVXUURXQGPRQLWRULQJIXQFWLRQVDUHFRQWUROOHGIURPWKH6XUURXQG0RQLWRULQJSDQHO

7ZLQ-R\VWLFN3DQHO

7KHWZLQMR\VWLFNVDOORZIXOO\DXWRPDWHGVXUURXQG

SDQQLQJRIDQ\WZRSDWKVVLPXOWDQHRXVO\$Q\QXPEHURISDWKVFDQEHSDQQHGLQWXUQXVLQJWKHMR\VWLFNVZLWKUHSHDWHGSDVVHV

7KHJUHHQOHGPDWUL[GLVSOD\VVKRZWKHSRVLWLRQRIWKHMR\VWLFNDGRWDQGWKHSDQQHGSRVLWLRQRIWKHVRXQGDGLDPRQG

7KHGRWLVXVHGWRSLFNXSWKHGLDPRQGDQGIRUPDFURVVWKHMR\VWLFNWKHQFRQWUROVWKHSDQQLQJRIWKHVRXQG

7KHUHGVSHDNHUV\PEROVLOOXPLQDWHWRVKRZWKHVSHDNHUVZKLFKZLOOEHXVHGLQWKHWDUJHWVXUURXQGIRUPDW7KHNH\VRQWKHSDQHODOORZFRQWURORYHUZKLFKSDWKLVEHLQJSDQQHGWKHDXWRPDWLRQPRGHIUHH]LQJRIDSDQQLQJD[LVDQGZKHWKHURU

QRWWKHMR\VWLFNKDVFRQWURORIWKHSDQQLQJ

6XUURXQG4XDGVWULS

7KHUHFDQEHXSWRWKUHH6XUURXQG4XDGVWULSVDFFRUGLQJWRWKHQXPEHURIRSHUDWRU]RQHV

SDUWLWLRQVWKDWWKHFRQVROHKDV

,IWKHUHLVPRUHWKDQRQHSDUWLWLRQWKHQLWLVSUREDEOHWKDWRQO\RQH6XUURXQG4XDGVWULSZLOO

KDYHD6XUURXQG0RQLWRUSDQHO

7KLVLVEHFDXVHWKHFRQWUROVRQWKH6XUURXQG0RQLWRU3DQHOZLOOJLYHGXSOLFDWHIXQFWLRQDOLW\LIWKHUHLVPRUHWKDQRQH

0XOWLSOH3(&'LUHFW3DQHOVSURYLGHFRQWURORYHUWKHVDPHVHWRIILOPVWHPVEXWGLIIHUHQWVWHPV

FDQEHFRQWUROOHGRQHDFK3(&'LUHFW3DQHO

26


27/153


6XUURXQG0RQLWRULQJ3DQHO

$OORZVWKHDVVLJQPHQWRIPRQLWRURXWSXWVWRHLWKHU$WR)RU$WR/VWHPV7KHUHDUH

DOVRWKUHHVHWVRIH[WHUQDOLQSXWVZKLFKFDQ

KDYHXSWRLQSXWVHDFK

7KHVWHPVDQGH[WHUQDOLQSXWVDUHWKHQURXWHGWRWKHVSHDNHUPDWUL[DQGWKH)LOP0RQLWRUSDWKV

7KHSDQHODOORZVIRURSHUDWLRQDWFDOLEUDWHG

OHYHOVDQGLQFOXGHVLQVHUWLRQSRLQWVIRUPDWUL[VXUURXQGGHFRGHUV

&XWDQG6RORRIDQ\VSHDNHUDORQJZLWKVPDOOVSHDNHUDQGPRQRIXQFWLRQVDUH

SURYLGHG

3(&'LUHFW3DQHO

7KH3(&'LUHFWSDQHOSURYLGHVVWHPUHFRUGHU

FRQWURODQGFRQILJXUDWLRQRIWKHILOPVWHPV

,WLVXVHGLQFRQMXQFWLRQZLWKWKH6XUURXQG0RQLWRULQJ3DQHOIRUIXOO\FRQILJXUDEOHURXWLQJRI

WUDFNPRQLWRUVWRVSHDNHUV

(QFRUH3OXV:RUNVWDWLRQ

7KH(QFRUH:RUNVWDWLRQFRQVLVWVRIDFRORXUPRQLWRUDPLQLNH\ERDUGDQGDWUDFNEDOO

7KHPRQLWRULVXVHGWRGLVSOD\WKHPDLQ(QFRUHVFUHHQDQGWKHVFUHHQVDQGGLDORJXHER[HVIRUWKHYDULRXVIXQFWLRQVWKDW(QFRUHSURYLGHV

7KHPDLQ(QFRUHDSSOLFDWLRQLVGHVFULEHGLQWKHVHSDUDWH(QFRUH3OXVPDQXDO

7KHPLQLNH\ERDUGDQGWKHWUDFNEDOODUHXVHGWRHQWHULQIRUPDWLRQDQGVHOHFWDQGFRQWUROWKH(QFRUHIXQFWLRQV

27


28/153


2SWLRQDO3DQHOV

0&63DQHO

7KH0&63DQHOLVDKDUGZDUHRSWLRQWKDWLVXVHGWRFRQWUROPXOWLSOHWUDQVSRUWGHYLFHVXSWRWKH

ILUVWHLJKWWKDWDUHGHWHFWHGRQSRZHUXS

,WFDQEHXVHGDQGFRQILJXUHGGLUHFWO\RULQFRQMXQFWLRQZLWKWKH(QFRUHVFUHHQDQGRSWLRQVRQWKH7UDQVSRUW0HQX0DFKLQHVDUHFRQWUROOHGLQJURXSV

2QO\RQHJURXSFDQEHDFWLYHO\FRQWUROOHGDWDWLPH(DFKJURXSFDQFRQWDLQXSWRHLJKWPDFKLQHV0DFKLQHVFDQEHKRWSOXJJHGDQGZLOOEHDXWRPDWLFDOO\GHWHFWHGE\WKH0&6

*UDSKLF(TXDOLVHU3DQHO

7KH*UDSKLF(43DQHOLVDQRSWLRQDOKDUGZDUHXSJUDGHZKLFKSURYLGHVGHGLFDWHGFRQWURORI(4RQRQH&KDQQHO7UDFNRU*URXS7KHSDQHOLVXVHGWRFRQWUROXSWRHLJKWEDQGVRI(4DFFRUGLQJWRWKH(4DVVLJQHGWRWKHSDWKRQWKHSDQHO

7KHUHFDQEHXSWRWZR*UDSKLF(43DQHOVSHU

FRQVROHSDUWLWLRQZKLFKFDQEHDVVLJQHGWRDQ\&KDQQHO7UDFNRU*URXSLQWKHVDPHSDUWLWLRQ

7KH\FDQQRWEHDVVLJQHGWRWKHVDPHSDWKDWWKHVDPHWLPH

6WDWXV3DQHO

7KHRSWLRQDO6WDWXV3DQHOSURYLGHVLQGLFDWLRQRI

RYHUORDGVRORDXWRPDWLRQORFN$ODUPJRHVRXWDQGVSHDNHUVZDS$ODUP

7KHPDVWHUWDOO\LQGLFDWRUVDUHQRWXVHG

,WDOVRKDVDWDONEDFNPLFURSKRQHDQGWDONEDFNJDLQFRQWURO

28


29/153


*HWWLQJ6WDUWHG

7KLVVHFWLRQJLYHVDSUDFWLFDOH[DPSOHRIFRQILJXULQJWKHFRQVROHZLWKDPLQLPDO'HVN6HWXSWKDWZLOOEHXVHGWRJHQHUDWHDQ/&56VXUURXQGPL[7KHHYHQWXDO

FRQILJXUDWLRQLVVXPPDULVHGLQWKH6XUURXQG0RQLWRULQJGLDJUDP

,WLVDGYLVDEOHWRUHDGWKURXJKWKLVWXWRULDOEHIRUHJRLQJWKURXJKLWRQ\RXUFRQVROH

7KHVWHSVLQWKLVWXWRULDODUHD /RJLQWR(QFRUHD &UHDWHDQHZ'HVN6HWXSZLWK'HVN(GLW

D 8VH,20DQDJHUWRSDWFKWKHLQSXWVDQGRXWSXWVD 6HWXSWKH)LOP6WHPVRQWKHFRQVROHVXUIDFHD 6HWXSXSWKHURXWLQJRQWKHFRQVROHVXUIDFHD 0RQLWRUDQDXGLRVRXUFHWRGHPRQVWUDWHWKHVXUURXQGSDQQLQJ

/RJJLQJLQWR(QFRUH

/RJJLQJLQSURYLGHVGDWDVHFXULW\DQGVHJUHJDWLRQRIGLIIHUHQWXVHUVGDWD$VFUHHQRUPRQLWRUWUDFNEDOODQGNH\ERDUGWKDWDUHVHSDUDWHIURPWKHPDLQ')&*HPLQLFRQVROHDUHXVHGWRLQWHUDFWZLWK(QFRUH,WVKRXOGEHQRWHGWKDWDOWKRXJKWKHVHLWHPVDUHQRWSK\VLFDOO\SDUWRIWKHFRQVROHVXUIDFHH[FHSWZKHUHWKLVLVUHTXHVWHGWKH\DUHDQLQWHJUDOFRPSRQHQWRIWKH')&*HPLQLV\VWHP7KHPDLQXVHVIRU(QFRUHDUHFRQILJXUDWLRQDQGRIIOLQHHGLWLQJ

7RORJLQSUHVVDQGKROG&WUO$OWDQG'HORQWKH(QFRUHNH\ERDUG

7KH:HOFRPHGLDORJXHER[ZLOOEHGLVSOD\HGDQGWKLVLVXVHGWRSURYLGHWKHXVHUQDPHDQGSDVVZRUG

7\SHWKH8VHUQDPH3UHVV(QWHURUFOLFNRQ2.

'RXEOHFOLFNWKHGHVNWRS(QFRUHLFRQDQGWKHPDLQ(QFRUHVFUHHQZLOOEHGLVSOD\HG

&UHDWLQJDQHZ'HVN6HWXS

7KHXWLOLW\XVHGIRUEDVLFFRQILJXUDWLRQRIWKHFRQVROHLVFDOOHG'HVN(GLW

7KLVLVXVHGWRVHWXSWKHQXPEHURIVLJQDOSDWKVWKDWDUHUHTXLUHGSURYLGHSDWKV

ZLWKEDVLFSURFHVVRUVVXFKDV(4ILOWHUVHWFDQGWRGHFLGHWKHSODFHPHQWRIWKHSDWKVRQWKHFRQVROHVXUIDFH

29


30/153


7KHVLJQDOSDWKVDUHFDOOHG&KDQQHOV7UDFNV$X[LOLDULHVHWF7KH\DUHXVHGIRUWKHVDPHIXQFWLRQVDVWKH\ZRXOGEHRQDQDQDORJXHFRQVROHHJ&KDQQHOVDUHXVHGIRULQSXWVWRWKHFRQVROHMXVWDV&KDQQHO6WULSVZRXOGEHRQDQDQDORJXH

FRQVROH7KHPDLQGLIIHUHQFHZKHQXVLQJWKH')&*HPLQLLVWKDWWKHQXPEHURISDWKVLVQRWIL[HGDQGWKHDSSURSULDWHQXPEHUFDQEHXVHGDFFRUGLQJWRDSDUWLFXODUWDVN7KHUHDUHDOVRVRPHVSHFLDOSDWKW\SHVXVHGE\WKH')&*HPLQLHJWKH)LOP

SDWKVWKDWDUHXVHGDVSDUWRIWKHVXUURXQGVRXQGV\VWHP

7RVWDUWDQHZ'HVN6HWXS&OLFNWKH'HVN(GLWLFRQDQGWKH'HVN(GLWRUZLOOEHGLVSOD\HGZLWK

WKH&RQILJSDJHRQWRS,QIRUPDWLRQDERXWWKHFXUUHQWO\ORDGHG'HVN6HWXSZLOOEHVKRZQ

'HVN(GLWLVXVHGWRSURYLGHDODUJHDPRXQWRILQIRUPDWLRQ7KLVZRXOGEHWRRPXFKWRILWRQRQHVFUHHQVR'HVN(GLWKDVPXOWLSOHSDJHVVHOHFWHGZLWKWDEVDWWKHWRSRIHDFKSDJH

&OLFNWKH1HZEXWWRQ

$GLDORJXHER[ZLOOEHGLVSOD\HGDVNLQJZKLFKW\SHRI'HVN6HWXS\RXZLVKWRFUHDWH

&OLFN8VHU'HVN6HWXSLILWLVQRWDOUHDG\VHOHFWHGDQGFOLFN2.

7KH&RQILJSDJHZLOOEHFOHDUHGDQGDEODQN'HVN6HWXSLVQRZUHDG\IRUFRQILJXUDWLRQ

1XPEHURI6LJQDO3DWKV

7KH&RQILJSDJHZLOOVKRZWKHGHIDXOWQDPHDQGQXPEHUVRISDWKVVLPLODUWRWKHIROORZLQJH[DPSOH

7KLVLVZKHUHWKHEDVLFFRQILJXUDWLRQRIWKH'HVN

6HWXSLVFUHDWHG7KHQDPHLVXVHGWRLGHQWLI\WKHSXUSRVHRIWKHSDUWLFXODU'HVN6HWXSDQGLVDOVRWKHQDPHRIWKH

ILOHWKDWWKH'HVN6HWXSZLOOEHVDYHGLQRQWKH(QFRUHKDUGGLVN

7\SHDQDPHRQWKHNH\ERDUGHJ7XWRULDO7KHGHIDXOWQDPHZLOOEHUHSODFHGE\ZKDWHYHULV

W\SHG3UHVVWKH7DENH\WRMXPSWRWKH&KDQQHOVER[DQGHQWHUWKHQXPEHU3UHVVWKH7DENH\WRPRYHWRHDFKSDWKQXPEHUER[LQWXUQDQGHQWHU7UDFNV*URXSVDQG0DLQ

&OLFNRQWKHGRZQSRLQWLQJDUURZDWWKHHQGRI)LOPVER[

30


31/153


$VPDOOGURSGRZQOLVWZLOOEHGLVSOD\HGWKDWVKRZVWKHDYDLODEOH)LOPPRQLWRULQJIRUPDWV&OLFNRQ/&56LQWKHOLVW7KHOLVWZLOOFORVHDQG/&56ZLOOEHVKRZQLQWKH)LOPVER[

7KHQH[WVWHSLVWRVHWXSWKHVLJQDOSURFHVVLQJWKDWZLOOEHDYDLODEOHWRWKH&KDQQHOV

6LJQDO3URFHVVLQJLQWKH&KDQQHOV&OLFNWKH&KDQQHOVWDE

7KH&KDQQHOVSDJHZLOOQRZEHGLVSOD\HG

,WVKRZVHLJKWFKDQQHOVHDFKRIZKLFKKDVWKH

GHIDXOWSURFHVVLQJRIDPRQRLQSXWDQGDIDGHU&KDQQHOLVFXUUHQWO\VHOHFWHGZLWKWKHUHGKLJKOLJKW


32/153


7KLV&RS\DQG3DVWHRSHUDWLRQRQO\DIIHFWVWKHFXUUHQWSDJHRI3DWKV,WLVQRWSRVVLEOHWRFRS\SURFHVVLQJHOHPHQWVEHWZHHQSDWKW\SHV

1RZWKDWWKH&KDQQHOVKDYHEHHQVHWXSLWLVQHFHVVDU\WRGHVLJQDWHWKH7UDFNVDVVXUURXQGSDQQLQJGHVWLQDWLRQVIRURXU/&56H[DPSOH

6HWXSWKH)LOP6WHPV

1RZWKDWWKH&KDQQHOVKDYHEHHQVHWXSLWLVQHFHVVDU\WRFUHDWH)LOP6WHPVWKDWWKH&KDQQHOVFDQEHURXWHGWR7KLVFDQEHGRQHDXWRPDWLFDOO\RQWKH6WHPVSDJHRI'HVN(GLW

(DFK)LOP6WHPLVDVHWRI7UDFNVDQGD7UDFNFDQRQO\EHXVHGLQRQH)LOP6WHP(DFK7UDFNLQD)LOP6WHPLVDOVRJLYHQDSDQGHVLJQDWRUWKDWFRUUHVSRQGVWRDVSHDNHUSRVLWLRQ)RU/&56HDFK)LOP6WHPXVHVIRXU7UDFNVDQGWKHSDQ

GHVLJQDWRUVXVHGDUH/HIW&HQWUH5LJKWDQG6XUURXQG0RQR,QDGGLWLRQWRWKLVDXWRPDWLFDOO\FRQILJXULQJWKH)LOP6WHPVZLOOURXWHHDFK7UDFN

WRWKH)LOPSDWKWKDWFRUUHVSRQGVWRWKHSDQGHVLJQDWRU7KH)LOPSDWKVVKRXOGDOUHDG\EHURXWHGWRWKHRXWSXWVWRWKHFRUUHFWVSHDNHUV

7KHVXUURXQGGLDJUDPVKRZVDVFKHPDWLFIRUPRIWKHILQDOUHVXOW1RWLFHWKDWWKHGLDJUDPPHQWLRQVXVLQJWKH3(&'LUHFWDQG6XUURXQGSDQHOVIRUDFKLHYLQJWKLVFRQILJXUDWLRQWKLVLVEHFDXVHWKH')&*HPLQLLVKLJKO\IOH[LEOHDQGDOORZVIRU

PDQXDOFRQILJXUDWLRQRI)LOP6WHPVDQG6XUURXQG0RQLWRULQJ

7KH7UDFNVRQ')&*HPLQLDUHWUDGLWLRQDOO\UHIHUUHGDVWKHEXVVHVRQDQDORJXHFRQVROHVXVHGIRUILOPPL[LQJ

&OLFNWKH6WHPVWDEDQGWKH6WHPVSDJHZLOOEHGLVSOD\HG

&OLFNWKH$XWRPDWLFEXWWRQ$ZDUQLQJGLDORJXHER[ZLOOEHGLVSOD\HGLQGLFDWLQJWKDWDOO6WHPVZLOO

EHUHFRQILJXUHG

&OLFNWKH


33/153


3DWK3ODFHPHQW

7KHQH[WWDVNLVWRGHFLGHWKHSODFHPHQWRISDWKVRQWKHFRQVROHVXUIDFH)RUWKHSXUSRVHVRIWKLVWXWRULDORQO\WKH&KDQQHOVQHHGWREHDVVLJQHGWRWKHVXUIDFHEXWZHZLOODOVRDVVLJQWKH7UDFNVDQG*URXSVVRWKDWLWEHFRPHVDIDPLOLDU

SURFHVV&OLFNWKH'HVN'HVLJQHUWDEDQGWKH'HVN'HVLJQHUSDJHZLOOEHGLVSOD\HGZLWK&KDQQHOVOLVWHGIRUSODFHPHQWE\GHIDXOW

3ODFLQJWKH&KDQQHOV&OLFNWKHFKHFNER[IRU/D\HU$7KHWLFNLQWKHFKHFNER[PHDQVWKDWZHDUHJRLQJWRDVVLJQWKH&KDQQHOVWRWKH3DWK$$FFHVVNH\VRQWKHVXUIDFH

&OLFN&KDQQHOLQWKHOLVWWRKLJKOLJKWLW

&OLFNWKHVFUROOEDUVRWKDW&KDQQHOLVYLVLEOH

+ROGGRZQRQHRIWKH6+,)7NH\VRQWKHNH\ERDUGDQGFOLFNRQ&KDQQHO

$OOWKH&KDQQHOVZLOOEHKLJKOLJKWHG

&OLFNWKH$VVLJQEXWWRQ:KHQWKHKLJKOLJKWLQWKHOLVWLVUHPRYHGWKHFKDQQHOQXPEHUVZLOOFKDQJHFRORXUWRLQGLFDWHWKDWWKH\KDYHEHHQDVVLJQHG7KHUHSUHVHQWDWLRQRIWKHIDGHUVLQWKHERWWRPKDOIRIWKHVFUHHQZLOOVKRZWKHQXPEHUVWRLQWKHER[HVWKDWFRUUHVSRQGWRWKHDOSKDGLVSOD\VIRUWKH3DWK$$FFHVVNH\V

3ODFLQJWKH7UDFNV&OLFNWKHFKHFNER[IRU/D\HU$DQGWKHFKHFNER[IRU/D\HU%7KHUHVKRXOGQRZEHDWLFNLQWKH/D\HU%FKHFNER[EXWQRWLQDQ\RIWKHRWKHU/D\HUFKHFN

ER[HV&OLFNWKHUDGLREXWWRQIRU7UDFNV&OLFNWKHILUVW7UDFNLQWKHOLVWDQGWKHQ6KLIW&OLFNWKHODVW7UDFNUHPHPEHUWR

VFUROOGRZQWR7UDFN&OLFNWKH$VVLJQEXWWRQDJDLQ7KH7UDFNVDUHQRZDVVLJQHGWRWKHILUVW3DWK%$FFHVVNH\V

3ODFLQJWKH*URXSV

$VVLJQWKH*URXSVWR/D\HU&XVLQJDVLPLODUSURFHGXUHWRDVVLJQLQJWKH7UDFNVWR/D\HU%

6DYHDQG$OORFDWH

7KHQHZ'HVN6HWXSLVFRPSOHWHVRLWPXVWQRZEHVDYHGDQGDOORFDWHGWRWKH

FRQVROH&OLFNWKH6DYHEXWWRQ$&RQILUP&UHDWH'HVN6HWXSGLDORJXHER[ZLOOEHGLVSOD\HGVKRZLQJWKHQDPH\RXKDYHJLYHQWKH'HVN6HWXS

&OLFN


34/153


,WLVDGYLVDEOHWRHQVXUHWKDWWKH/LVWHQV7DONEDFNV6HOV([WHUQDOVDQG)LOPVRSWLRQVDUHDOZD\VFKHFNHGDWOHDVW7KLVHQVXUHVWKDWHYHQLIDOORIWKH,2WRWKHFRQVROHKDVFKDQJHGWKHPRQLWRULQJDQGVRORV\VWHPVZLOOVWLOOUHWDLQWKHVDPHSRUWLQJ

7KHGLDORJXHER[ZLOOEHUHSODFHGE\DWLPHUWKDWLVGLVSOD\HGZKLOHWKH'HVN6HWXSLVEHLQJVDYHGDQGWKHQDOORFDWHGRQWKHFRQVROH

:KHQWKLVLVFRPSOHWHDGLDORJXHER[ZLOOEHGLVSOD\HGFRQILUPLQJWKDWWKHDOORFDWLRQSURFHVVKDVILQLVKHG&OLFNWKH2.EXWWRQDQGFOLFNWKH([LWEXWWRQWRTXLW'HVN(GLW

,I\RXLQVSHFWWKHFRQVROHVXUIDFH\RXZLOOVHHWKDWWKHILUVWHLJKWIDGHUVWULSVZLOOKDYHWKH&KDQQHOV7UDFNVDQG*URXSVDVVLJQHGWR/D\HUV$%DQG&UHVSHFWLYHO\

7KHQH[WWDVNLVWRXVH,23DWFKLQJWRFKHFNWKH)LOPSDWKVDUHSDWFKHGWRWKHFRUUHFWRXWSXWVDQGWKHQSDWFKWKH&KDQQHOVWRVXLWDEOHLQSXWV

&KHFNWKH)LOP2XWSXWV

&OLFNRQWKH,23DWFKLQJLFRQDQG,23DWFKZLOOEHGLVSOD\HG7KHWDEEHG&KDQQHOVSDJHZLOOEHRQWRS&OLFNWKH)LOPVWDE

7KH)LOPVSDJHZLOOEHGLVSOD\HGZLWKWKHIRXU)LOPSDWKV

7KHLUFXUUHQWRXWSXWVDUHVKRZQLQWKH2XWFROXPQ&KHFNWKDWWKHSRUWQDPHVDUHFRUUHFW,IWKHSRUWVDUHQRWFRUUHFWWKHQJRWR5RXWH

)LOPVWR2XWSXW3RUWVEHORZ

,IWKHSRUWVDUHFRUUHFWWKHQVNLSWR5RXWH,QSXW3RUWVWR&KDQQHOV

5RXWLQJ)LOPVWR2XWSXW3RUWV

&OLFNLQWKH2XWFROXPQ7KLVZLOOVHWWKHSRUWVHOHFWLRQWR2XWSXWV

&OLFND)LOPSDWKWKDWGRHVQRWKDYHWKHFRUUHFWRXWSXWSRUW&OLFNWKHUDGLREXWWRQVIRUWKH5DFNQXPEHUDQGWKHFRUUHFWSRUW7\SH7KH3RUWV/LVWZLOOVKRZDOOWKHRXWSXWSRUWVRIWKHVHOHFWHGW\SHLQWKHVHOHFWHG

UDFNQXPEHU&OLFNWKHFRUUHFWSRUWQDPHLQWKH3RUWVOLVW

,IWKHSRUWLVDOUHDG\EHLQJXVHGWKH3DWKVER[ZLOOVKRZWKHQDPHRIWKHSDWK

XVLQJWKHSRUWDQGDIODVKLQJPHVVDJHLQGLFDWLQJWKHSRUWLVXVHGE\SDWK&OLFNWKH$VVLJQEXWWRQ,IWKHSRUWLVDOUHDG\XVHGDGLDORJXHER[ZLOOEHGLVSOD\HGDVNLQJIRUUHDVVLJQPHQWFRQILUPDWLRQ7KLVLVEHFDXVH2XWSXWSRUWVFDQRQO\EHDWWDFKHGWRRQH2XWSXWSDWKDWDWLPH

&OLFNWKH


35/153


5RXWLQJ,QSXW3RUWVWR&KDQQHOV

LWLVSRVVLEOHIRUHYHU\LQSXWWREHDVVLJQHGLQSXWSRUWV$%DQGWRIUHHO\VZDSEHWZHHQWKHPRQWKHFRQVROHVXUIDFH

&OLFNWKH&KDQQHOVWDE7KHWDEEHG&KDQQHOVSDJHZLOOEHGLVSOD\HGRQWRS&OLFNWKH,Q$FROXPQ&OLFNLQWKH3DWKFROXPQWRVHOHFW&KDQQHO

&OLFNWKHUDGLREXWWRQVIRUWKH5DFNQXPEHUDQGWKHFRUUHFWSRUW7\SHDFFRUGLQJ

WRWKHSRUWQDPHV\RXKDYHEHHQVXSSOLHGZLWK7KH3RUWV/LVWZLOOVKRZDOOWKHRXWSXWSRUWVRIWKHVHOHFWHGW\SHLQWKHVHOHFWHGUDFNQXPEHU&OLFNWKHFRUUHFWSRUWQDPHLQWKHOLVW

,IWKHSRUWLVDOUHDG\EHLQJXVHGWKH3DWKVER[ZLOOVKRZWKHQDPHRIWKHSDWKXVLQJWKHSRUWDQGDIODVKLQJPHVVDJHLQGLFDWLQJKRZPDQ\SDWKVDUHXVLQJWKHSRUW$Q\QXPEHURISDWKVFDQXVHDQLQSXWSRUW&OLFNWKH$VVLJQEXWWRQ7KHSRUWZLOOEHURXWHGWRWKH&KDQQHO7KHSRUWQDPH

ZLOOEHVKRZQDJDLQVWWKH&KDQQHOQXPEHULQWKH,QFROXPQ,IGHVLUHGUHSHDWWKHSURFHGXUHIRU,Q%DQGIRUDQ\RWKHU&KDQQHOVWKDW\RXZLVKWRDVVLJQLQSXWVWR

:KHQ\RXKDYHILQLVKHGPDNLQJFKDQJHVFOLFNWKH([LWEXWWRQ7KH'HVN6HWXSZLOOEHVDYHGDXWRPDWLFDOO\DQGWKLVZLOOVDYHWKH,25RXWLQJFKDQJHV

$1RWHRQ3RUW1DPLQJ&RQYHQWLRQV

7KHV\VWHPQDPHVIRULQSXWDQGRXWSXWSRUWVLQGLFDWHWKHUDFNQXPEHUWKHSRUWW\SHWKHSRUWQXPEHULIWKHSRUWLVPRQRRUVWHUHRDQGZKHWKHUWKHSRUWLVDQLQSXWRURXWSXW

5DFN1XPEHU

7KHOHDGLQJGLJLWVLQWKHSRUWQDPHLQGLFDWHWKHUDFNQXPEHUDFFRUGLQJWRZKLFK0$',SRUWWKHUDFNLVFRQQHFWHGWRIURPWKHPDLQ'635DFN)RULQVWDQFHOLQDLVDOLQHLQSXWIURPDQ$'&FDUGLQWKH,265DFNFRQQHFWHGWRWKHVHFRQG0$',SRUWDQGWKLVLVUHIHUHQFHGDV5DFN

3RUW7\SH7KHSRUWW\SHLVVXPPDULVHGE\WKHWKUHHOHWWHUVIROORZLQJWKHUDFNQXPEHU)RULQVWDQFHDHVDELVDVWHUHRLQSXWIURPDQ$(6(%8FDUGLQ5DFN

7KHH[FHSWLRQLVIRUSRUWVWKDWDUHFRQQHFWHGE\0$',WKDWDUHQRWSDUWRIWKH')&*HPLQLV\VWHP)RULQVWDQFHPDGLVWKHWHQWKLQSXWRQ0$',SRUW7KLVFRXOGEHIURP$061HYHRXWERDUGHTXLSPHQWHJD7',)0$',,QWHUIDFHXQLWRUDQ\WKLUGSDUW\GHYLFHHJDWDSHPDFKLQHWKDWKDVD0$',LQWHUIDFH

3RUW1XPEHUDQG0RQR6WHUHR6WDWXV7KHWUDLOLQJQXPEHUVDQGOHWWHUVLQGLFDWHWKHSRUWQXPEHUZLWKLQUDFN)RULQVWDQFHOLQDLVPRQRLQSXWWKDWLVWKHULJKWOHJRIOLQHLQSXWLQUDFN

$Q\SDLURISRUWVFDQEHFRPELQHGDVDVWHUHRSDLUWKLVLVWKHGHIDXOWIRU$(6SRUWV/LQHDQG$(6SRUWVDUHQXPEHUHGLQWKHVHTXHQFH$%$%DQGVRRQ$PDWFKLQJSDLURISRUWVLVFRPELQHGWRPDNHDVWHUHRSDLUHJ$%$%$%DQGVRRQ2WKHUSRUWW\SHVFDQEHFRPELQHGLQWRDVWHUHRSDLUXVLQJDQRGGQXPEHUHGSRUWIRUWKH

OHIWOHJDQGWKHIROORZLQJHYHQQXPEHUHGSRUWIRUWKHULJKWOHJ)RULQVWDQFHPDGLVDVWHUHR0$',LQSXWXVLQJ0$',LQSXWVDQGRQ0$',SRUW

,QSXWRU2XWSXW

7KHSRUWW\SHLQV\VWHPQDPHVIRULQSXWVDUHLQORZHUFDVHLHVPDOOOHWWHUVDQGIRURXWSXWVDUHLQXSSHUFDVHLH&DSLWDOOHWWHUV)RULQVWDQFH$(6$%LVDVWHUHRRXWSXWDQGDHVDELVWKHPDWFKLQJVWHUHRLQSXW

35


36/153


7R5RXWH&KDQQHOWR6WHP$SUHVVWKH3DWK$NH\RQHLWKHUWKHPDVWHU0DLQ3DWKVSDQHORURQWKHILUVWIDGHUVWULSRQWKHFRQVROH7KLVZLOOHQVXUHWKDW&KDQQHOLVDVVLJQHGWRWKHIDGHUVWULS

/RRNDWWKH6WHP5RXWLQJ'LVSOD\RQWKHIDGHUVWULSIRU&KDQQHO,IWKHOHWWHU$LVQRWLOOXPLQDWHGSUHVVWKH67(06(/NH\XQWLO

LWLV7KHOHGVLQWKHWRNH\VZLOOLOOXPLQDWHJUHHQ

3UHVVWKH5287(72$//NH\

7KHOHGVLQWKHWRNH\VZLOOFKDQJHIURPJUHHQWRUHGDQGWKHGLJLWVWRQH[WWR$RQWKH6WHP5RXWLQJ'LVSOD\ZLOOLOOXPLQDWH

&KDQQHOLVQRZIXOO\URXWHGWR6WHP$

3UHVVDQGKROGWKH,23$1NH\IRU&KDQQHO


37/153


$WWKLVVWDJHLWPD\VHHPWKDWWKHFRQILJXUDWLRQLVDORQJSURFHVVEXWLWVKRXOGEHUHPHPEHUHGWKDWVHWWLQJXSWKHFRQVROHIRUDSDUWLFXODUVHVVLRQLVDRQFHRQO\WDVN

$OVRWKHDFWXDOZRUNRIPDNLQJPL[HVDQGPRQLWRULQJWKHUHVXOWVGHSHQGVRQSURSHUFRQILJXUDWLRQRIWKHFRQVROHIRUWKHSURMHFWLQKDQG

7KLVLVZK\WKLVWXWRULDOKDVFRQFHQWUDWHGPDLQO\RQWKHVHWXSSKDVH

6RPHRWKHUSRLQWVWRQRWHDERXWWKHRSHUDWLRQRIWKH')&*HPLQLDUH

6DYLQJWKHFRQILJXUDWLRQLQWKH'HVN6HWXSPHDQVWKDWPRVWRIWKHZRUNKDVDOUHDG\EHHQGRQHZKHQDVLPLODUVHWXSLVUHTXLUHGIRUDQHZSURMHFW7KHVHWXSFDQEHFKDQJHGRQWKHIO\IURPWKHFRQVROHVXUIDFHWRUHILQHHDFK'HVN6HWXS7KH'HVN6HWXSRQO\XVHVDQGDOORFDWHVWKHUHVRXUFHVWKDWDUHUHTXLUHGIRUWKHWDVN

2WKHUXVHIXOLQIRUPDWLRQIRUXVHUVQHZWR')&*HPLQLDQGGLJLWDOFRQVROHV6HH

+RZWKH6XUURXQG6RXQG6\VWHP:RUNV

6LJQDO3DWKV $XWRPDWLRQ

0HWHULQJ

8SGDWLQJWKH6WDWLF'HVN6HWXS6QDSVKRW

:LWKLQHDFK'HVN6HWXSWKHUHLVDVQDSVKRWFDOOHGWKH'HVN6HWXS6QDSVKRW7KLVLVDVWDWLFVQDSVKRWRIDOOSURFHVVLQJYDOXHVEXWWRQVZLWFKVWDWHVPLFJDLQHWFDQGLWLVXSGDWHGHYHU\WLPHRQD 6DYH/RDG RSHUDWLRQ ZLWKLQ 'HVN

(GLWRU,WLVSRVVLEOHWRXSGDWHWKLVVQDSVKRWZLWKRXWD6DYH/RDGRSHUDWLRQ

2QWKH0DVWHU$XWRPDWLRQHYHQWVSDQHOKROGGRZQWKH$OO6FRSHNH\3UHVV.((35HOHDVHWKH$OO6FRSHNH\

$PHVVDJHZLOODSSHDULQWKHDOSKDQXPHULFGLVSOD\DERYHWKH.((3NH\VKRZLQJ

WKHVWDWXVRIWKH.HHSRSHUDWLRQ

0HVVDJH ([SODQDWLRQ

5HDG2QO\ 'HVN6HWXSIDLOHGWRXSGDWHGXHWRILOHEHLQJ5HDG2QO\

$OO2. 'HVN6HWXSDQG$XWRPDWLRQVDYHGVXFFHVVIXOO\

'HVN21/< 'HVN6HWXSVDYHG$XWRPDWLRQIDLOHGWRVDYHWLPHOLQHUXQQLQJRU$XWRPDWLRQQRWHQDEOHGLQ(QFRUH

'HVN)$,/ 'HVN6HWXSIDLOHGGXHWR)LOHUHUURU

,I\RXDUHDOVRORJJHGRQWR$XWRPDWLRQSHUIRUPLQJWKLVDFWLRQZLOO

:ULWHDQHZ0L[3DVVWRWKHWUHH

,QFUHPHQWWKH0L[3DVVQXPEHUE\

&OHDUWKHDXWRPDWLRQPHPRU\EXIIHU

37


38/153


6LJQDO3DWKV

$3DWKLVDGLVFUHWHSDUWRIWKHVLJQDOIORZWKURXJKWKHFRQVROHWKDWKDVDGLVWLQFWLQSXWDQGRXWSXWHLWKHUWRWKHRXWVLGHZRUOGRUWRDQRWKHUSDWK

$3RUWLVDQLQWHUIDFHWRWKHRXWVLGHZRUOGHJD'$RXWSXWFRQYHUWHUDQ$(6(%8LQSXWRUDGLJLWDO0$',LQSXWRURXWSXW

1RWHWKDWDOOSDWKW\SHVFDQPDNHXVHRIDQ\VLJQDOSURFHVVLQJIXQFWLRQV

LQFOXGLQJXVLQJXSWRWZRLQVHUWVHDFK7KHWRWDODPRXQWRISURFHVVLQJDYDLODEOHGHSHQGVRQWKHKDUGZDUHFRQILJXUDWLRQ

&KDQQHOV

&KDQQHOVSURYLGHWKHPDLQLQSXWVWRWKHFRQVROH7KH\FDQEHPRQRRUVWHUHR&KDQQHOVDUHDVVLJQHGWRWKHIDGHUVDFFRUGLQJWRWKH'HVN'HVLJQHUSDJHRI'HVN(GLWZKHQDQHZ'HVN6HWXSLVFUHDWHG7KHGHIDXOWSDWKQDPHVIRU&KDQQHOVDUHMXVWWKHQXPEHUIRUWKHSDWKHJHWF&KDQQHOVPXVWEHFRQQHFWHGSRUWURXWHGSDWFKHGWRDQ,QSXW3RUW7KLVLVDFKLHYHGXVLQJ,20DQDJHURU,QSXW3DWFKLQJ$&KDQQHOFDQDOVRKDYHDGLUHFWRXWSXWDVVLJQHGWRLW

&KDQQHOVDUHXVXDOO\URXWHGWRWKH7UDFNVWKDWPDNHXS)LOP6WHPV7KH\FDQDOVREHURXWHGWR7UDFNVWKDWDUHQRWLQVWHPV0DLQ2XWSXWVDQG*URXSV7KH\FDQDOVRPDNHFRQWULEXWLRQVWR$X[LOLDULHV

&KDQQHOVDUHDOVRZKHUHPRVWRIWKHLQLWLDOVLJQDOSURFHVVLQJLVDSSOLHG

7UDFNV%XVVHV

7KH7UDFNVSURYLGHWKHVDPHIXQFWLRQDOLW\DVEXVVHVWDSHPRQLWRUVWUDFNVHQGV

DQG)LOP6WHPHOHPHQWVRQFRQYHQWLRQDODQDORJXHFRQVROHV

7UDFNVDUHPRQRRQO\7KH\DUHXVHGWRFUHDWHWKH)LOP6WHPVRQWKH3(&'LUHFWSDQHO%XV7DSHVZLWFKLQJLVSURYLGHGE\WKH3(&'LUHFWSDQHO7KHGHIDXOWSDWKQDPHVDUH75.WR75.WKHQ7.7.HWF

7UDFNVKDYHDWUDFNVHQGRXWSXWDQGWUDFNUHWXUQLQSXWDWWKHEHJLQQLQJRIWKHVLJQDOSDWK7KHVHFDQEHFRQQHFWHGSRUWURXWHGSDWFKHGWRDQ2XWSXWDQGDQ,QSXW3RUW7KLVLVDFKLHYHGXVLQJ,20DQDJHURU,QSXW3DWFKLQJDQG2XWSXW

3DWFKLQJ

7UDFNVFDQKDYH&KDQQHOV*URXSVDQGRWKHU7UDFNVDVURXWLQJVRXUFHV7UDFNVDUHXVXDOO\URXWHGWR)LOPVWRIHHGWKH6XUURXQG0RQLWRUEXWWKH\FDQDOVREH

URXWHGWR0DLQ2XWSXWV*URXSVDQGRWKHU7UDFNV7KHVRIWZDUHWKDWFRQWUROV

URXWLQJSUHYHQWVDQ\IHHGEDFNORRSVIURPRFFXUULQJ7KH\FDQDOVRPDNHFRQWULEXWLRQVWR$X[LOLDULHV

*URXSV

*URXSVDUHPRQRRUVWHUHRSDWKVWKDWFDQEHXVHGWRSURYLGHH[WUDRXWSXWVIURPWKHFRQVROH0RQR*URXSVFDQDOVRKDYHSDQGHVLJQDWRUVDSSOLHGVRWKDWDQ\

&KDQQHOVURXWHGWRWKHPZLOOSDQWRWKH*URXSDFFRUGLQJWRWKHGHVLJQDWHGVSHDNHUSRVLWLRQ7KLVZRXOGEHXVHIXOIRULQVWDQFHLQIHHGLQJDQRXWERDUGHIIHFWVXQLWZLWKWKHSDQQHGVLJQDOVIRUWKHUHDUVXUURXQGZKLFKFRXOGWKHQEHORRSHGEDFNLQWRWKH

FRQVROHYLDDQLQSXWWRD&KDQQHO

38


39/153


*URXSVDUHQRWXVHGLQ)LOP6WHPV7KH\FDQQRWXVH%XV7DSHVZLWFKLQJDQGDUH

WKHUHIRUHXQDEOHWRXVHWKH3(&'LUHFWSDQHO

&KDQQHOVDQG7UDFNVFDQEHURXWHGWR*URXSV*URXSVFDQEHURXWHGWR0DLQ2XWSXWV$X[HVDQG7UDFNV

$X[LOLDULHV7KH$X[HVSURYLGHDGGLWLRQDODX[LOLDU\RXWSXWVWKDWFDQEHXVHGIRUDYDULHW\RISXUSRVHVWRLQFUHDVHWKHIOH[LELOLW\RIWKHFRQVROH)RULQVWDQFHDQ$X[FRXOGJDWKHUVHYHUDO&KDQQHOVWRJHWKHUDQGRXWSXWWRDQHIIHFWVXQLW7KHUHWXUQIURPWKHHIIHFWVXQLWFDQWKHQEHWKHLQSXWWRDQRWKHU&KDQQHOZKLFKLV

LQWXUQURXWHGWRD6XUURXQG6WHP

$QRWKHUDSSOLFDWLRQLVWRXVHDQ$X[WRFKDQJHWKHFRQWULEXWLRQOHYHOVIURP&KDQQHOVWRDVXEZRRIHU7KH$X[FDQRXWSXWWRDVSDUH0$',SRUWWKDWORRSVEDFNLQWRDQRWKHU&KDQQHOZKLFKLVLQWXUQURXWHGWRWKHVXEZRRIHUSDUWRIDVXUURXQG6WHP&KDQJLQJWKHFRQWULEXWLRQOHYHOIURPRQH&KDQQHOWRWKH$X[ZRXOGWKHQFKDQJH

WKDW&KDQQHOVFRQWULEXWLRQWRWKHVXEZRRIHUZLWKRXWDIIHFWLQJWKHUHVWRIWKHVXUURXQGPL[

8SWRVWHUHRRUPRQR$X[LOLDU\6HQGVDUHDYDLODEOH7KH$X[HVDVVLJQHGWRWKH$8;VHOHFWLRQNH\VZLOOGHSHQGRQZKHWKHURUQRW6SOLW&RQVROHLVLQRSHUDWLRQ

DQGKRZPDQ\6KDUHG$X[HVDUHFRQILJXUHG2QO\WKHILUVW$X[LOLDU\6HQGVDUHDYDLODEOHZKHQQRWXVLQJ6SOLW&RQVROH

(DFK$X[FDQEH3UHRU3RVWIDGHUDQGFDQKDYHWKHFRQWULEXWLRQOHYHODGMXVWHG

IURPG%WRG%DQGEHEDODQFHGZKHQVWHUHR

$X[HVFDQWDNHFRQWULEXWLRQVIURP&KDQQHOV7UDFNVDQG*URXSVDQGFDQEH

URXWHGWR&XHVRUDSK\VLFDORXWSXW

&XHV

&XHVDUHWUDGLWLRQDOO\XVHGRQQRQILOPFRQVROHVWRSURYLGHDXGLRWRDQDUWLVWLQDVWXGLRDQGVRRQ

&XHVDUHSUHVHQWRQWKH')&*HPLQLIRUFRPSDWLELOLW\ZLWK/RJLFVHULHVFRQVROHV,WLVQRWDQWLFLSDWHGWKDWWKH&XHVZLOOEHXVHGLQDILOPSRVWSURGXFWLRQHQYLURQPHQW&XHVSURYLGHRXWSXWVWKDWDUHJHQHUDOO\IHGWRKHDGSKRQHVRUH[WUDVHWVRI

VSHDNHUVLQDVWXGLR

$X[LOLDULHVDQG0DLQ2XWSXWVFDQEHURXWHGWR&XHV

0DLQ2XWSXWV

0DLQ2XWSXWVRU0DLQVWUDGLWLRQDOO\SURYLGHGWKHVWHUHRPL[DQGPRQLWRULQJRXWSXWVIURP/RJLFV\VWHPV0DLQ2XWSXWVZRXOGRQO\EHXVHGLIDSODLQVWHUHRPL[LVUHTXLUHGZLWKRXWXVLQJ

WKH6XUURXQG0RQLWRULQJV\VWHP

)LOPV

)LOPSDWKVDUHXVHGE\WKH6XUURXQG0RQLWRULQJV\VWHPDVRXWSXWVWRWKHPRQLWRULQJVSHDNHUV

39


40/153


)LOPVFDQEHDVVLJQHGWRWKHFRQVROHVXUIDFHDOWKRXJKWKLVLVQRWQHFHVVDU\IRUWKHLURSHUDWLRQ

7KHQXPEHURI)LOPSDWKVGHWHUPLQHVZKLFKVSHDNHUNH\VDUHDYDLODEOHRQWKH6XUURXQG0RQLWRULQJSDQHO7KHUHFDQEHRU)LOPSDWKVZLWKVSHDNHUVNH\VDYDLODEOHDVIROORZV

1RRI)LOPSDWKV 6SHDNHUNH\VDYDLODEOH

1RQH

/5

/&5DQG/6

/&5/656DQG6:

$OO

7KHQXPEHURI)LOPVDOVRGHWHUPLQHVWKHQXPEHURI)LOP/LVWHQV7KHGHIDXOWSDWKQDPHVIRU)LOPVDUH)/0WR)/0

)LOPVPXVWEHURXWHGWRWKHRXWSXWVWRWKHPRQLWRULQJVSHDNHUVZLWK,20DQDJHURU2XWSXW3DWFKLQJFDQEHXVHGLIWKH)LOPVDUHDVVLJQHGWRWKHVXUIDFH

7KH)LOPVDOVRKDYH(QFRGH'HFRGHLQVHUWVDQG/W5W0RQRUHWXUQVZKLFKPXVWEHSDWFKHGWRWKHDSSURSULDWHLQSXWVDQGRXWSXWVZLWK,23DWFKLQJRUVHH3DWFKLQJ)LOP,QVHUWVIRU3RVW'HFRGHDQG/W5WLIWKH)LOPVDUHDVVLJQHGWRWKHVXUIDFH

:KHQWKHUHDUH)LOPV6WHUHRWKH3DQ'HVLJQDWRUV/HIWDQG5LJKWDUHXVHGQRW)URQW/HIWDQG)URQW5LJKWDQGWKH$&$'$FDGHP\ILOWHU3267'(&2'(

DQG/W5WNH\VDUHGLVDEOHG$OVR/66HO7UDFNVDQG([WHUQDOVDUHURXWHGWRERWKOHIWDQGULJKWZKHQ0212

LVVHOHFWHG

([WHUQDOV

([WHUQDOVDUHXVHGWRSURYLGHDGGLWLRQDOGLUHFWLQSXWVWRWKH6XUURXQG0RQLWRULQJ6\VWHPIURPXSWRWKUHHWDSHPDFKLQHVRURWKHUGLUHFWVRXUFHV

(DFK([WHUQDOPDFKLQHFDQSURYLGHXSWRLQSXWVJLYLQJDPD[LPXPRI([WHUQDOV7KHQXPEHURILQSXWVIURPHDFKH[WHUQDOGHYLFHLVVSHFLILHGDVSDUWRIWKH'HVN6HWXSLQWKH&RQILJSDJHRI'HVN(GLW

7KH([WHUQDOVDUHVHOHFWHGIRUPRQLWRULQJXVLQJWKH67(06(/DQG68%0,;(5VHFWLRQVRIWKH6XUURXQG0RQLWRULQJSDQHO

3UH'XE0DVWHUV

3UH'XE0DVWHUVDUHDFRQWURORQO\SDWKW\SHXVHGWRFRQWUROWKH3UHGXEPHPEHUVFRPSULVLQJRI&KDQQHOVRU7UDFNV

$3UH'XE0DVWHUXVHVQRSURFHVVLQJUHVRXUFHV$OOFRQWUROVLQWKH3UHGXEPHPEHUVDUHOLQNHGWRWKH3UH'XE0DVWHU

3UH'XE0DVWHUVDUHDVVLJQHGWRWKHVXUIDFHXVLQJWKH'HVN'HVLJQHUSDJHRI

'HVN(GLW

40


41/153


,ID3UH'XE0DVWHULVQRWDVVLJQHGWRWKHVXUIDFHWKHQLWLVQRWSRVVLEOHWRH[SDQGLWDQGDFFHVVWKHPHPEHUSDWKV

7KH3UH'XE=RQHLVDEORFNRIXSWRHLJKWFKDQQHOVVWULSVWZRTXDGVWULSVRQ

ZKLFK/D\HU$LVXVHGIRUH[SDQGLQJ3UHGXEV7KH3UH'XE=RQHLVDOVRXVHGIRUH[SDQGLQJWKHVLJQDOSURFHVVLQJDQGDX[FRQWUROVLQ$)80RGH

7KH ORFDWLRQ RI WKH 3UH'XE =RQH LV VHW XVLQJ 3DUWLWLRQ 'HVLJQHU LQ3UHIHUHQFHV$FRQVROHWKDWKDVPXOWLSOHSDUWLWLRQVFDQKDYHD3UH'XE=RQHIRUHDFKSDUWLWLRQ

3UH'XE0DVWHUVFDQFRQWURODJURXSRIXSWR&KDQQHOVDQGRU7UDFNVLQDQ\FRPELQDWLRQRUGHU

7KH3UHGXEPHPEHUVDUHVWDFNHGXQGHUWKH3UH'XE0DVWHUDQGDUHDFFHVVHGLQGLYLGXDOO\E\H[SDQGLQJWKH3UHGXEDFURVVWKH3UH'XE=RQH$3UHGXEFDQQRWEHH[SDQGHGRQDFRQVROHRUSDUWLWLRQWKDWGRHVQRWKDYHD

3UH'XE=RQH

7RFKDQJHWKHRYHUDOOOHYHORID3UHGXESUHVVWKH3DWKDFFHVVNH\IRUWKH3UHGXEDQGPRYHWKHIDGHU7KHVLJQDOZLGWKLQGLFDWRUVEHORZWKH6WHP5RXWLQJPDWUL[ZLOOLQGLFDWHKRZPDQ\SDWKVDUHLQWKH3UHGXE

7RH[SDQG3UHGXEVSUHVVDQGKROGWKH3DWKDFFHVVNH\IRUWKH

3UHGXEPDVWHU

7KHDVVRFLDWHGDOSKDZLOOGLVSOD\WKHXVHUQDPHIRUWKH3UHGXE7KHVLJQDOZLGWKLQGLFDWRUVEHORZWKH6WHP5RXWLQJPDWUL[ZLOO

LQGLFDWHKRZPDQ\SDWKVDUHLQWKH3UHGXE

7KHOHGVLQWKH*$1*DQG/,1.NH\VZLOOLOOXPLQDWHUHG

3UHVVWKH/,1.NH\RQWKHVDPHFKDQQHOVWULSDQGUHOHDVHWKH

3DWKDFFHVVNH\7KHSDWKVLQWKH3UHGXEZLOOEHH[SDQGHGDFURVV/D\HU$LQWKH3UHGXE]RQH(DFKSDWKFDQQRZEHFRQWUROOHGLQWKHVDPHZD\DVDQRUPDOSDWKLHFKDQJLQJ(4HWF

7KH3UH'XE0DVWHUZLOOUHPDLQLQSODFHDQGFKDQJLQJLWVFRQWUROVZLOOFKDQJHWKH

VODYHGFRQWUROVLQWKH3UHGXE]RQH

&RQWLQXRXVFRQWUROVIDGHUV(4IUHTXHQFLHVHWFFDQEHPRYHGWRFKDQJHWKHRIIVHWIURPWKH3UH'XE0DVWHU7KHRIIVHWLVUHWDLQHG

6WHSSHGFRQWUROVSKDVHUHYHUVHDX[SUHSRVWHWFFDQEHFKDQJHGEXW

LIWKH3UH'XE0DVWHULVFKDQJHGWKHQWKH3UHGXEPHPEHUVZLOOIROORZWKH0DVWHUVHWWLQJV

7RFROODSVHWKH3UHGXEVODYHVSUHVVWKHDQGKROG3DWKDFFHVVNH\IRUWKH3UHGXEPDVWHU3UHVVWKH/,1.NH\RQWKHVDPHFKDQQHOVWULSDQGUHOHDVHWKH3DWKDFFHVVNH\

3UH'XE&87DQG62/2$&87RU62/2RQD3UH'XE0DVWHUZLOOFXWRUVRORDOOWKHSDWKVLQWKH3UH'XE

41


42/153


:KLOHD3UH'XE0DVWHU&87RU62/2LVRQWKHLQGLYLGXDO&87RU62/2RQD3UH'XEPHPEHUFDQEHVZLWFKHGRQRURIIEXWZLOOQRWRYHUULGHWKH&87RU62/2LPSRVHGE\WKH0DVWHU7KHLQGLYLGXDO&87RU62/2RQD3UH'XEPHPEHURQO\

WDNHVHIIHFWZKHQWKH&87RU62/2IRUWKH3UH'XE0DVWHULVRII

$QLQGLYLGXDO&87RU62/2RQD3UH'XEPHPEHUZLOOUHPDLQRQHYHQZKHQ&87RU62/2RQWKH3UH'XE0DVWHULVWXUQHGRII7KLVLVLOOXVWUDWHGEHORZ

)RUH[DPSOHLID3UH'XE0DVWHULV&87ZKLOHWKH3UH'XELVH[SDQGHGWKH&87NH\VIRUWKH3UH'XEPHPEHUVFDQEHSUHVVHGZLWKQRDSSDUHQWHIIHFW+RZHYHUWKHVWDWXVRI&87NH\VIRUWKH3UH'XEPHPEHUVLVUHJLVWHUHGDQGZKHQWKH&87

IRUWKH3UH'XEPDVWHULVWXUQHGRIIWKHUHFRXOGVWLOOEH3UH'XEPHPEHUVWKDWDUH&87

7KLVFRXOGDOVRKDSSHQLIWKH3UH'XELVFROODSVHGEHIRUHWKH0DVWHU&87LVWXUQHGRIILHWKHPHPEHULVFXWEXWWKLVFDQQRWEHVHHQRQWKHVXUIDFH

6\VWHP3DWKV

7KH6\VWHP3DWKVDUHVSHFLDOSDWKW\SHVWKDWDUHXVHGE\')&*HPLQLIRUWKH

VRORWDONEDFNDQGWRQHIXQFWLRQVWRRSHUDWHFRUUHFWO\7KHQXPEHURIHDFKW\SHRI6\VWHP3DWKFDQEHFKDQJHGIRUDSDUWLFXODU'HVN6HWXSEXWLWLVVWURQJO\UHFRPPHQGHGWRNHHSWKHGHIDXOWVIRUWKHVHSDWKW\SHV

6(/

7KHUHDUHWKUHHVWHUHR6(/SDWKVE\GHIDXOW6(/LVDQDEEUHYLDWLRQRI6HOHFW

6(/WR6(/WKDWDUHXVHGE\WKHOHJDF\PRQLWRULQJV\VWHP

42


43/153


6(/LVRIWHQXVHGWRRXWSXWWRQHDUILHOGVSHDNHUVLHQRUPDOGRPHVWLFTXDOLW\VSHDNHUVWRWHVWFRPSDWLELOLW\RIDVXUURXQGPL[ZLWKKRPHKLILRUVWHUHRWHOHYLVLRQV

/LVWHQV

7KHUHDUHWZR/,67(1SDWKVE\GHIDXOW/6DQG/6WKDWDUHXVHGE\WKH

QRUPDO$)/DQG3)/VROREXVVHV7KHVHVKRXOGQRWEHFRQIXVHGZLWKWKHVPDOOORXGVSHDNHUV/6DQG/6WKDW

FDQEHIHGE\6(/DQG6(/

7DONEDFN

7KHUHLVRQH7$/.%$&.SDWKWKDWLVXVHGIRUWKHWDONEDFNV\VWHPDQGWKH

WRQHVODWHJHQHUDWRU

)LOP/LVWHQV

7KHVHDUHXVHGWRSURYLGHDQRQGHVWUXFWLYH$)/VROREXVWKDWIHHGVWKH6XUURXQG0RQLWRUVGLUHFWO\7KHQXPEHURI)LOP/LVWHQVLVDXWRPDWLFDOO\FKDQJHGWRPDWFK

WKHQXPEHURI)LOPSDWKVDQGWKLVVKRXOGQRWEHFKDQJHGPDQXDOO\7KH\DUHQDPHG)/6WR)/67KHIROORZLQJWDEOHVXPPDULVHVWKHPD[LPXPTXDQWLWLHVRIHDFKSDWKW\SHDQG

WKHQDPHVXVHGLQGLIIHUHQWGLVSOD\V

3DWK 0D[LPXPSDWKV

'HVN(GLW&RQILJ3DJHQDPH

(QFRUH3DWK1DPHV

0HWHU'HVLJQHU1DPHV

1DPH'LVSOD\HGRQ0HWHUV

3DWK7\SH'LVSOD\RQ0DWUL[3DQHO

&KDQQHOV &KDQQHOV Q &KDQQHOV Q &KDQ

7UDFNV 7UDFNV 75.QWR75QQ

7UDFNV ^VWHP`$WUQQ

7UN

*URXSV *URXSV *53QWR

*5QQ

*URXSV *UQ *US

$X[LOLDULHV $X[LOLDULHV $8Q $X[HV $XQ $X[

([WHUQDO0DFKLQHV

XSWRSHU

PDFKLQH

([WHUQDO0DFKLQHV

([WHUQDOV ([WHUQDOV (Q 0&

3UHGXEV 3UHGXEV 3'Q 3UH'XEV 3'

6XUURXQG0RQLWRU%XVVHV

)LOPV )/0Q )LOPV )0Q )LOP

7DONEDFNV 7DONEDFNV 7%. 7%. WE 7DON

6XUURXQG6ROR%XV

)LOP/LVWHQV

)/6Q )LOP/VWQ )/Q )OVQ

0DLQV 0DLQ 0$,1WKHQ

0$,Q

0DLQV 0QQ 0DLQ

&XHV &XH &8(QWR&8QQ

&XHV &XQ &XH

6WHUHR0RQLWRU

%XVHV

6HOV 6(/Q 6HOV 6(/Q 6HO

6WHUHR$)33)/

6ROR%XVHV

/LVWHQ /6Q /LVWHQV /6Q /VWQ

:KHUHQSDWKQXPEHU

43


44/153


7KH(QFRUH3DWK1DPHLVXVHGLQWKH6\VWHP1DPHFROXPQZKHQSDWKVDUH

OLVWHGLQ(QFRUHIXQFWLRQVDQGXWLOLWLHV7KLVLVDOVRXVHGRQWKHDOSKDGLVSOD\VDVVRFLDWHGZLWKWKH3DWK$FFHVVNH\VDQGFDQEHRYHUULGGHQZLWKD8VHU1DPH0DLQV&XHV6(/VDQG/LVWHQVDUHVKRZQVHSDUDWHO\EHFDXVHWKH\DUHQRWQHFHVVDU\WRQRUPDORSHUDWLRQRIWKH')&

%DQN/D\HU6HOHFWLRQRQWKH)DGHU6WULSV

7KH')&*HPLQLXVHVIRXU%DQNVWRHDFKRIZKLFKKDVIRXUOD\HUV$%&'7KLVPHDQVWKDWDQ\IDGHUVWULSFDQKDYHXSWRIRXUVLJQDOSDWKVDVVLJQHGWRLWRQHIRUHDFKRIWKH3DWK$FFHVVNH\V6LJQDOSDWKVDUHLQLWLDOO\DVVLJQHGWRWKHIDGHUVWULSVXVLQJWKH'HVN'HVLJQHU

SDJHRI'HVN(GLW7KHFRQVROHVXUIDFH6HWXSIXQFWLRQFDQDOVREHXVHGWRFKDQJHIDGHUDVVLJQPHQW

7RVHOHFWZKLFK%DQNWRXVHSUHVVWKH%DQN

EXWWRQLQWKH4XLFNNH\VVHFWLRQRIWKHFRQVROH1RZXVHWKHQXPEHUHGEXWWRQVDERYHWRVHOHFW

WKHGHVLUHG%DQN7KHEDQNQDPHZLOOEHGLVSOD\HGLQWKHORQJDOSKD7KH3DWK6HOHFWNH\VZLOOFKDQJHWRVKRZLQJWKHOD\HUQDPHVIRUWKDW%DQNDVVHWLQ(QFRUHV'HVN'HVLJQHU

7RVHOHFWDSDWKRQDIDGHUVWULSSUHVVWKH3DWK$3DWK%3DWK&RU3DWK'NH\DVUHTXLUHG7KHVHNH\VDUHUHIHUUHGWRDVWKH3DWK$FFHVVNH\V

7KHSDWKQDPHLQWKHDOSKDGLVSOD\DVVRFLDWHGZLWKWKHNH\ZLOOLOOXPLQDWHEULJKWO\

7KHIDGHUZLOOPRYHDQGWKHRWKHUFRQWUROVLQWKHSDWKZLOOFKDQJHWKHLUGLVSOD\DFFRUGLQJWRWKHLUVHWWLQJVIRUWKHVHOHFWHGSDWK

7KHVHOHFWHGSDWKLVQRZRQWKHVXUIDFH

,ID3DWK$FFHVVNH\LVSUHVVHGZKHUHWKHUHLVQRSDWKDVVLJQHGWKHQWKHSUHVVZLOOEHLJQRUHG

7RVHOHFWDOD\HUDFURVVWKHZKROHFRQVROHRUSDUWLWLRQSUHVVWKH3DWK$3DWK%3DWK&RU3DWK'NH\RQWKH0$,13$7+6VHFWLRQRIWKHPDVWHUTXDGVWULSRU

44


45/153


SUHVVDQGKROGWKH$//NH\RQDQ\IDGHUVWULSSUHVVWKH3DWK$3DWK%3DWK&RU3DWK'NH\RQWKHVDPHIDGHUVWULSWKHQUHOHDVHWKH$//NH\

$OOWKHIDGHUVWULSVWKDWKDYHDSDWKDVVLJQHGWRWKHVHOHFWHGOD\HUZLOOKDYHWKDWOD\HUEURXJKWWRWKHVXUIDFH

7RYLHZWKHVHWWLQJVRIFRQWUROVRQDOD\HU

3UHVVDQGKROGWKH3DWK$3DWK%3DWK&RU3DWK'NH\RQWKH0$,13$7+6VHFWLRQRIWKHPDVWHUTXDGVWULS

7KHFRQWUROVRQWKHIDGHUVWULSVZLOOFKDQJHDFFRUGLQJWRWKHVHOHFWLRQ

5HOHDVHWKHNH\DQGWKHIDGHUVWULSVZLOOUHWXUQWRWKHLUSUHYLRXVDVVLJQPHQWV

&RQVROH6HWXSIXQFWLRQ

7KH6HWXS)XQFWLRQLVDFWLYDWHGZLWKWKH6(783NH\RQWKH8SSHU5RXWLQJ0DWUL[DQGDOORZV3DWK3URFHVV6ZLWFKLQJ7XUER$OORFDWLRQDQG3DWK3ODFHPHQW

7KH6HWXS)XQFWLRQSURYLGHVDVXUIDFHEDVHGDOWHUQDWLYHWRVRPHRIWKHIXQFWLRQDOLW\RI'HVN(GLWDQG3DWK(GLW

3DWK3ODFHPHQWDOORZVWKHDVVLJQPHQWDQGPRYHPHQWRISDWKVRQWKHVWULSVDQG

OD\HUVRQWKHFRQVROHVXUIDFH

7XUER$OORFDWLRQDOORZVWKHSURFHVVLQJHOHPHQWVLQDSDWKWREHFKDQJHG3DWK3URFHVV6ZLWFKLQJDOORZVWKHRUGHURISURFHVVLQJHOHPHQWVLQDSDWKWREH

FKDQJHG

7RDFWLYDWHWKH6HWXS)XQFWLRQSUHVVWKH6(783NH\RQWKH8SSHU5RXWLQJ3DQHO

7KHORQJDOSKDZLOOGLVSOD\6HOHFW3DWK

3DWK3ODFHPHQWLQ6HWXS

6HWXS0RGHDOORZVSDWKVWREHDVVLJQHGDQGGHDVVLJQHGWRVWULSVOD\HUVRQWKH

FRQVROHVXUIDFHDQGPRYHGIURPRQHVWULSOD\HUWRDQRWKHU

7RSODFHDSDWKRQWKHFRQVROHVXUIDFHSUHVVDQGKROGD3DWKDFFHVVNH\ZKHUHWKHUHLVQRSDWKSUHVHQW7KH/RZHU5RXWLQJ3DQHOZLOOGLVSOD\DYDLODEOHSDWKVWRDOORZDSDWKWREHVHOHFWHG

7KHDOSKDVZLOOVKRZWKHSDWKW\SHDQG&+$1ZLOOEHGLVSOD\HGE\GHIDXOW

7KHOHGVLQWKHQXPEHUHGNH\VZLOOLOOXPLQDWHJUHHQWRVKRZWKHDYDLODEOHSDWKV,IQHFHVVDU\SUHVVWKHQXGJHNH\VWRFKDQJHWKHSDWKW\SH

45


46/153


3UHVVWKHQXPEHUNH\RQWKH/RZHU5RXWLQJ3DQHOFRUUHVSRQGLQJWRWKHUHTXLUHGSDWK7KHLQWHJUDOOHGLQWKHQXPEHUNH\ZLOOLOOXPLQDWHUHG7KHDOSKDDVVRFLDWHGZLWKWKH3DWKDFFHVVNH\ZLOOGLVSOD\WKHSDWKQDPH

7RGHDVVLJQDSDWKIURPWKHFRQVROHVXUIDFHSUHVVDQGKROGWKHSDWK$FFHVVNH\IRUWKHUHTXLUHGSDWK7KH/RZHU5RXWLQJ3DQHOZLOOGLVSOD\DYDLODEOHSDWKV,IQHFHVVDU\SUHVVWKHQXGJHNH\VWRFKDQJHWKHSDWKW\SH

7KHOHGLQWKHFRUUHVSRQGLQJQXPEHUHGSDWKNH\RQWKH/RZHU5RXWLQJ3DQHOZLOOEHLOOXPLQDWHGUHG3UHVVWKHQXPEHUNH\FRUUHVSRQGLQJWRWKHUHTXLUHGSDWK7KHDOSKDDVVRFLDWHGZLWKWKH3DWKDFFHVVNH\ZLOOJREODQN

7RPRYHDSDWKSUHVVDQGKROGWKH3DWKDFFHVVNH\IRUWKHUHTXLUHGSDWK3UHVVWKH3DWKDFFHVVNH\IRUWKHGHVWLQDWLRQDQGWKHDOSKDGLVSOD\VZLOOVZDS,IDSDWKZDVDOUHDG\DOORFDWHGWRWKHGHVWLQDWLRQWKHQWKHWZRSDWKVZLOOEHVZDSSHG

7XUER$OORFDWLRQ

7XUER$OORFDWLRQ6HWXS0RGHDOORZVVLJQDOSURFHVVLQJWREHDVVLJQHGDQGGH

DVVLJQHGGLUHFWO\IURPWKHFRQVROHVXUIDFH

7KHIXQFWLRQVZKLFKFDQEHDVVLJQHGDQGGHDVVLJQHGZLWK7XUER$OORFDWLRQDUH(4)LOWHUV6LGHFKDLQ)LOWHUDQG.H\,QSXW2XWSXW&RPSUHVVRU/LPLWHU*DWH

([SDQGHU,QVHUWVDQGWKH'\QDPLF5DQJH&RQWUROOHU,I3DWK(GLWLVDFWLYHRQWKH(QFRUHVFUHHQDQGFKDQJHVDUHPDGHWRWKHSDWKGLVSOD\HGWKHQWKHFKDQJHVPDGHLQ7XUER$OORFDWLRQZLOOEHVKRZQRQWKHVFUHHQ,IFKDQJHVDUHPDGHLQ(QFRUHWKHQWKHDOORFDWLRQSURFHVVZLOOGLVDEOH7XUER

$OORFDWLRQ

2QHQWHULQJ6HWXSPRGH3UHGXEPHPEHUVDUHFROODSVHGDQGWKHWXUERLQJRI3UHGXEPHPEHUVLVGLVDOORZHG

7KH$8;DQG2102'(NH\VDUHQRWDFWLYHLQ7XUER$OORFDWLRQ7KHRUGHURISURFHVVLQJPD\EHFKDQJHGXVLQJ3DWK3URFHVV6ZLWFKLQJ

7RHQDEOH7XUER$OORFDWLRQSUHVVWKH6(783NH\RQWKH8SSHU5RXWLQJ3DQHOD 7KHORQJDOSKDGLVSOD\RQWKHSDQHOZLOOGLVSOD\7XUER6HOHFW3DWKD 7KHDOSKDVDVVRFLDWHGZLWK/RJLFDWRURQWKHFKDQQHOVWULSVZLOOGLVSOD\

6(7D 7KHOHGVLQNH\VZLWKSURFHVVHVDOUHDG\DVVLJQHGZLOOLOOXPLQDWHUHG

7KHFRQVROHLVQRZLQ6HWXS0RGH

7RDOORFDWHDSURFHVVZKHUHQRQHLVDOUHDG\DOORFDWHGSUHVVWKHUHTXLUHG6LJQDO3URFHVVLQJNH\7KHLQWHJUDOOHGZLOOLOOXPLQDWHJUHHQ7KHDOSKDDVVRFLDWHGZLWK/RJLFDWRUZLOOGLVSOD\WKHSURFHVVLQJDYDLODEOH5RWDWH/RJLFDWRUWRVHOHFWRWKHUSURFHVVLQJRSWLRQV

)RUH[DPSOHLIWKH(4NH\LVSUHVVHGWKHDOSKDZLOOGLVSOD\(4PHDQLQJDVLQJOHEDQGRI(45RWDWLQJWKH/RJLFDWRUFORFNZLVHDOORZVXSWRIRXUEDQGVRI(4

WREHVHOHFWHG3UHVVWKH21&/($5NH\$URWDWLQJEDUZLOOEHGLVSOD\HGLQDOSKDZKLOHWKHSURFHVVLVDOORFDWHG

:KHQDOORFDWLRQLVFRPSOHWH

$OSKDZLOOGLVSOD\2.

46


47/153


7KHLQWHJUDOOHGLQWKHVHOHFWHG6LJQDO3URFHVVLQJNH\ZLOOLOOXPLQDWHRUDQJH

7KHLQWHJUDOOHGLQWKH21&/($5NH\ZLOOLOOXPLQDWHUHG

5RWDWLQJ/RJLFDWRUZLOOQRZKDYHQRHIIHFW

7RXQDOORFDWHDSURFHVVSUHVVWKHUHTXLUHG6LJQDO3URFHVVLQJ

NH\ZKLFKKDVLWVOHGLOOXPLQDWHGUHGWKHLQWHJUDOOHGZLOOLOOXPLQDWHRUDQJHDQGWKHLQWHJUDOOHGLQWKH21&/($5NH\ZLOOLOOXPLQDWHUHG

3UHVVWKH21&/($5NH\WKHLQWHJUDOOHGZLOOFHDVHWREHLOOXPLQDWHG7KHOHGLQWKHVHOHFWHG6LJQDO3URFHVVLQJNH\ZLOOLOOXPLQDWHJUHHQ

/RJLFDWRUPD\QRZEHURWDWHGWRVHOHFWDGLIIHUHQWSURFHVVLQJRSWLRQZKLFKFDQWKHQEHUHDOORFDWHGXVLQJWKH21&/($5NH\

7RHQG7XUER$OORFDWLRQSUHVVWKH6(783NH\RQWKH8SSHU5RXWLQJ3DQHODJDLQ7XUER$OORFDWLRQ3URFHVVLQJ2SWLRQV:KHQ/RJLFDWRULVURWDWHGDOSKDZLOOGLVSOD\RSWLRQVDFFRUGLQJWRWKHVHOHFWHG

VLJQDOSURFHVVLQJDVIROORZV

.H\ $OSKD'LVSOD\

(4 (4(4(4(4(4(4(4(4EDQGVRI(4

)LOWHU6&).H\ )/7)/7RU)LOWHUV

)LOWHU6&).H\

3DJH

6&(4.H\6.

6LGHFKDLQ(4.H\,QSXWRUERWK,23DQ3DJH

0RQRRU$%$%:063RUWVLJQDOW\SH

&RPS/LP &03&03RU&RPSUHVVRUV/LPLWHUV

([S*DWH (;35*$7(;*'5&([SDQGHU*DWHERWKRU'5&

1RWHVRQ7XUER$OORFDWLRQ

%DQG(4

,IPRUHWKDQIRXUEDQGVRI(4DUHDOORFDWHGWKHQ)LOWHUVDQGWKHVLGHFKDLQHOHPHQWVPD\QRWEHDOORFDWHG6LPLODUO\LIDQ\)LOWHUVRUVLGHFKDLQHOHPHQWVDUHDOUHDG\DOORFDWHGWKHQDPD[LPXPRIIRXUEDQGVRI(4FDQEHDOORFDWHG

6LGHFKDLQ(OHPHQWV7KH6LGHFKDLQ)LOWHUDQG.H\,QSXWDUHDFFHVVHGXVLQJWKH3$*(NH\,IWKH),/7(56&).(


48/153


6LPLODUO\LIDOOG\QDPLFVLVUHPRYHGIURPWKHSDWKWKHQDQ\6LGHFKDLQHOHPHQWVZLOODOVREHUHPRYHGDQGPXVWEHUHDOORFDWHGLIUHTXLUHGDIWHUIXUWKHUG\QDPLFVKDYHEHUHDOORFDWHG

3RUWV7KHSRUWVDUHDFFHVVHGXVLQJWKH3$*(NH\2QO\&KDQQHOV7UDFNV*URXSVDQG0DLQVPD\KDYHWKHLUSRUWVPRGLILHGE\7XUER$OORFDWLRQ

,IWKH,23$1NH\LVSUHVVHGWKHOHGLQWKH3$*(NH\ZLOOLOOXPLQDWHUHG,IWKH3$*(NH\LVSUHVVHGWKHQDOSKDZLOOGLVSOD\WKHLQSXWRXWSXWW\SHHJ0212$%HWF

2QO\&KDQQHOVDQG*URXSVDOORZWKHRSWLRQDORXWSXWWREHDGGHGDQGUHPRYHG7UDFNVDQG0DLQVDOORZWKHSRUWW\SHWREHPRGLILHGLILWLVVWHUHR

,Q7XUER$OORFDWLRQRQO\RQHRXWSXWPD\EHPDQLSXODWHGIRU0DLQSDWKV,IWZRRXWSXWVDUHUHTXLUHGRQD0DLQSDWKWKHQWKHH[WUDSRUWPXVWEHDOORFDWHGLQ3DWK(GLWRU'HVN(GLW

3DWK3URFHVV6ZLWFKLQJ

336DOORZVLQVWDQWFKDQJHVLQWKHRUGHURISURFHVVLQJHOHPHQWVZLWKLQDSDWK7KHUHVXOWVDUHLPPHGLDWHO\DXGLEOHDOORZLQJ$%FRPSDULVRQVWREHPDGH

3UHVVWKH6(783NH\RQWKH8SSHU5RXWLQJSDQHOWKHORQJDOSKDGLVSOD\ZLOOGLVSOD\7XUER6HOHFW3DWK

3UHVVWKHUHTXLUHG3DWKNH\RQWKHFRQVROHVXUIDFHWKHORQJDOSKDGLVSOD\ZLOOVKRZWKHFKDQQHOVHOHFWHGDQGLWV,QSXW2XWSXWVWDWXV

7KHOHIWKDQGFROXPQRIDOSKDVVRXUFHZLOOVKRZDOLVWRISURFHVVLQJLQWKDWSDWK

7KHOHGVRQWKHNH\VQH[WWRWKHVRXUFHOLVW

HWFZLOOLOOXPLQDWHUHG287

8VLQJ336WRFKDQJHWKHRUGHURISURFHVVLQJHOHPHQWV3UHVVDQGKROGDPDWUL[NH\QH[WWRDSURFHVVLQWKHVRXUFHOLVW

3UHVVWKHPDWUL[NH\WRWKHULJKWRIWKHGHVLUHGSRVLWLRQLQWKHGHVWLQDWLRQOLVW

7KHGHVWLQDWLRQDOSKDZLOOVKRZWKHFRSLHGSURFHVVLQJDQGWKHOHGRQWKHNH\QH[WWRLWZLOOLOOXPLQDWHJUHHQ

7KHOHGRQWKHNH\WRWKHULJKWRIWKHVRXUFHNH\SUHVVHGZLOOLOOXPLQDWH\HOORZDVVKRZQLQWKH336

([DPSOH5HSHDWWKHVHWZRVWHSVXQWLODOOSURFHVVLQJKDVEHHQFRSLHGWRLWV

GHVWLQDWLRQ,IWKHUHDUHPRUHWKDQHLJKWSURFHVVLQJPRGXOHVLQWKHVRXUFHOLVWWKHVRXUFHDQGGHVWLQDWLRQOLVWVPD\EHVFUROOHGXSDQGGRZQWRJHWKHU

7RVFUROOXSSUHVVDQGKROGWKHORZHVWNH\RIWKHVHFRQGQXPHULF

FROXPQIURPWKHOHIWLH

7RVFUROOGRZQSUHVVDQGKROGWKHXSSHUPRVWNH\RIWKHVHFRQG

FROXPQIURPWKHOHIWLH

48


49/153


7RFRS\SURFHVVLQJIURPWKHERWWRPRIWKHVRXUFHOLVWWRWKHWRSRIWKHGHVWLQDWLRQOLVWRUYLFHYHUVDDQGZKHQWKHUHDUHPRUHWKDQHLJKWSURFHVVLQJPRGXOHVSUHVHQW6FUROOWKHOLVWVWRVKRZWKHUHTXLUHGHOHPHQWLQWKHVRXUFHOLVW

3UHVVDQGKROGWKHNH\DGMDFHQWWRWKHUHTXLUHGSURFHVVLQJPRGXOHLQWKHVRXUFHOLVW6FUROOGRZQXSWKHGHVWLQDWLRQOLVWXVLQJHLWKHUWKHRUNH\DQGSUHVVWKH

GHVWLQDWLRQNH\

7RLPSOHPHQWWKHFKDQJHKDYLQJHVWDEOLVKHGWKHQHZOLVWSUHVVWKHNH\WRLPSOHPHQWWKHFKDQJHWKHOHGVIRUWKHVRXUFHOLVWZLOOLOOXPLQDWH

JUHHQDQGWKHGHVWLQDWLRQOHGVZLOOLOOXPLQDWHUHGWRVKRZWKHQHZSURFHVVLQJRUGHULVDFWLYH

$OOSDUDPHWHUVHWWLQJVIRUSURFHVVLQJHOHPHQWVDUHSUHVHUYHGWKURXJKRXWWKHVZLWFKLQJSURFHVV

7RVHOHFWDGLIIHUHQWSDWKIRU336SUHVVWKHUHTXLUHG3DWKNH\RQWKHFRQVROHVXUIDFH

7KHFKDQJHVWRWKHH[LVWLQJSDWKZLOOEHVDYHGDVSDUWRIWKHFXUUHQW'HVN6HWXSEHIRUHWKHQHZSDWKLVFDOOHGLQWRWKHSDQHO

336([DPSOH

7KLVLVDSDUWLDOO\FRPSOHWHG336H[DPSOH7KHVRXUFHOLVWLVRQWKHOHIWKDQGVHWRIDOSKDGLVSOD\VUHGOHGV7KHGHVWLQDWLRQOLVWLVRQWKHULJKWKDQGVHWRIDOSKDGLVSOD\VJUHHQOHGV

8VLQJ336IRU$%FRPSDULVRQV

8VHWKH DQG NH\VWRWRJJOHEHWZHHQWKHSURFHVVLQJRUGHULQWKHOHIW

DQGULJKWZLQGRZV7KHOHGVRIWKHVHOHFWHGVHWRISURFHVVLQJZLOOWXUQUHGDQGWKH

GHVHOHFWHGVHWZLOOWXUQJUHHQ7KHVLJQDOSURFHVVLQJZLOOWRJJOHEHWZHHQWKHWZRGLIIHUHQWYHUVLRQV$Q\GLIIHUHQFHLQDXGLRZLOOEHKHDUG

7RH[LW3363UHVVWKH287NH\7KHQHZSURFHVVLQJRUGHUZLOOEHVDYHGDVSDUWRIWKHFXUUHQW'HVN6HWXS

&KDQJHVPDGHWRWKH'HVN6HWXSZLWKWKH6HWXSIXQFWLRQDUHQRWDXWRPDWLFDOO\VDYHG&KDQJHVFDQEHVDYHGPDQXDOO\IURPWKHFRQVROHVXUIDFH

7RXSGDWHWKH'HVN6HWXSDIWHUPDNLQJFKDQJHVIURPWKHFRQVROHVXUIDFHSUHVVDQGKROGWKH$//6&23(NH\3UHVVWKH.((3NH\WKHQUHOHDVHERWKNH\V

7KLVDOVRVDYHVDQ\FKDQJHVWRFRQWUROYDOXHVJDQJVWUXFWXUHV

HWF,IDXWRPDWLRQLVDFWLYHDQGWKHUHLVD5HFRUG3DVVLQWKHDXWRPDWLRQEXIIHUWKHQWKLVZLOODOVREHVDYHGWRWKHFXUUHQW0L[3DVV7UHH

49


50/153


6XUURXQG6RXQG)DFLOLWLHV

7KHVXUURXQGIHDWXUHVRIWKH')&*HPLQLDUHSURYLGHGE\WKH6XUURXQG0RQLWRULQJSDQHO3(&'LUHFWSDQHO-R\VWLFNSDQHODQGFRQWUROVLQWKH&KDQQHO

6WULSV

)RUPDW6XUURXQG6RXQG([DPSOH$)RUPDW6XUURXQG6RXQGVHWXSRQ6WHP$LVXVHGDVDQH[DPSOHIRUVRPHRIWKHIHDWXUHVLQWKLVFKDSWHU7KLVLVDYHU\VLPSOHVHWXSIRULOOXVWUDWLRQSXUSRVHVRQO\

7KLVIRUPDWLVNQRZQDVEHFDXVHWKHUHDUHILYHVXUURXQGGHVWLQDWLRQV)URQW/HIW)URQW&HQWUH)URQW5LJKW5HDU6XUURXQG/HIWDQG5HDU6XUURXQG5LJKWSOXVWKHVXEZRRIHU7KHVHWXSZLOOEHDVIROORZV

)RUPDW6XUURXQG6RXQGXVLQJ/&5/656DQG6:VXEZRRIHU7UDFNVWRZLOOIRUP6WHP$&KDQQHODVDVWHUHRLQSXWIURPOLQ$%

&KDQQHOVDQGDVPRQRLQSXWVOLQ$DQGOLQ%&KDQQHOVDUHRQOD\HU$7UDFNVDUHRQOD\HU%DQG)LOP0RQVDUHRQOD\HU'

$OOWKHH[DPSOHVOLVWHGEHORZUHIHUWRWKLVVHWXSDQGWKHVWHSVWRZDUGVREWDLQLQJLW,WLV

DVVXPHGDQDSSURSULDWH'HVN6HWXSZLWKHQRXJK&KDQQHO7UDFNEXVDQG)LOPSDWKVKDVEHHQORDGHG,WLVDOVRDVVXPHGWKDWWKH)LOPVDUHSDWFKHGWRWKHFRUUHFWRXWSXWVIRUWKHVSHDNHUVWKHSDUWLFXODURXWSXWVXVHGIRUWKHVSHDNHUVZLOOEHGLIIHUHQWIURPRQH')&*HPLQLWRDQRWKHU

7KHRWKHUSDQHOVWKDWUHODWHWRWKLVH[DPSOHDUH6HOHFW3DWKVWRIRUPWKH6WHP6HOHFWWKHVSHDNHUVIRUPRQLWRULQJWKH6WHP

6HOHFWLQSXWVWRWKH6WHP0RQLWRUWKHUHVXOW

7KH6XUURXQG0RQLWRULQJ3DQHO

3URYLGHVFRQWUROVIRUVHOHFWLQJWKH6WHPVWREH

PRQLWRUHGDQGWKHIRUPDWVWRXVHIRUPRQLWRULQJ

7KH3(&'LUHFW3DQHO

8VHGWRFRQILJXUHXSWR6WHPVODEHOOHG$

WKURXJK/(DFK6WHPFDQFRQVLVWRIXSWRHLJKW7UDFNVEXVVHVZKLFKDUHWKHQURXWHGWRWKH)LOPSDWKVLQFRQMXQFWLRQZLWKWKH6XUURXQG0RQLWRULQJSDQHO

(DFK7UDFNLQHDFK6WHPDOVRKDV6RORDQG&XWFRQWURO7KLVRQO\DIIHFWVWKHVLJQDOVURXWHGWRWKH)LOPSDWKVDQGLVWKHVDPHDVXVLQJ$)/6RORDQG&XWRQWKHFRUUHVSRQGLQJIDGHUVWULSV

50


51/153


,WFDQEHXVHGWRFRQWUROWKH5HFRUGVWDWXVRI0DJDQG0XOWLWUDFNWDSHPDFKLQHVZLWK%XV7DSHVZLWFKLQJWKDWDOORZVPRQLWRULQJRIWKH7UDFN6HQG%XVRU7UDFN5HWXUQ7DSH

$QDUUD\RIUHGWDOO\OHGVLQGLFDWHWKHUHFRUGVWDWXVRIWUDFNVLQWKH6WHPV*UHHQOHGVQH[WWRHDFKWDOO\VKRZWKH%XV7DSHVZLWFKLQJ$VDIHPHFKDQLVPLVSURYLGHGZKLFKRSHUDWHVLQWHUQDOO\WRGLVDEOH5HFRUGRQ

LQGLYLGXDO7UDFNVDQGSUHYHQWIXUWKHU5HFRUGHQDEOHFRPPDQGVEHLQJVHQWWRWKHWDSHPDFKLQHVIRUWKHVDIH7UDFNV)XOO\FRQILJXUDEOHPDVWHUFRQWUROJURXSLQJFDQDOVREHXVHGIRU5HFRUG%XV7DSHDQG6DIH

7KH-R\VWLFN0RGXOHSURYLGHVDQLQWXLWLYHPHDQVRISDQQLQJDVLJQDOLQDVXUURXQGVRXQGILHOG

7KH&KDQQHO6WULS&RQWUROVKDYHDVSHFLDOURXWLQJDQGGLVSOD\VHFWLRQVSHFLILFDOO\GHVLJQHGIRUURXWLQJWRILOP6WHPV

+RZWKH6XUURXQG6RXQG6\VWHP:RUNV

$VXUURXQGVRXQGVHWXSRQWKH')&*HPLQLFRQVLVWVRIWKUHHPDLQSDUWV

D6LJQDOVRXUFHVWKDWDUHSDQQHGD)LOPVWHPVWKDWDFFHSWWKHSDQQHGVLJQDOVD)LOPPRQLWRULQJWKDWFRQWUROVZKLFKVWHPVDUHRXWSXWWRWKHVSHDNHUV

)LOPVWHPVDUHPDGHXSRI7UDFNVWKDWKDYHKDGVXLWDEOHSDQGHVLJQDWRUVDSSOLHGWRWKHPXVLQJ'HVN(GLWRU

7KHSDQGHVLJQDWRUPHDQVWKDWZKHQD&KDQQHOLVURXWHGWRDSDUWLFXODU7UDFNWKHQWKH7UDFNRQO\UHFHLYHVWKHUHOHYDQWSRUWLRQRIWKHVLJQDOWKDWLVSDQQHGWRWKDWVSHDNHUSRVLWLRQ

51


52/153


7KH6LPSOLILHG6XUURXQG0RQLWRULQJGLDJUDPVKRZVKRZWKLVZRUNV

6WHP$FRQVLVWVRIWKHILUVWIRXU7UDFNVLQWKHFXUUHQW'HVN6HWXSDQGWKH/&563DQ0DFURKDVEHHQXVHGWRGHVLJQDWHWKH7UDFNVDSSURSULDWHO\

&KDQQHOLVURXWHGWRDOOWKH7UDFNVLQ6WHP$,I&KDQQHOLVSDQQHGIXOO\WRWKHOHIWDQGIURQWWKHQWKHRQO\VLJQLILFDQWVLJQDOZLOOEHVHQWWR7UDFNEHFDXVH7UDFNLVGHVLJQDWHGLQWKHSDQQLQJSRVLWLRQRI)URQW/HIW

,IWKH)%SDQFRQWURORUD-R\VWLFNLVXVHGWRPRYHWKHVLJQDOEDFNIURPWKLVSRVLWLRQWKHQWKHVLJQDOZLOOVORZO\GLPLQLVKWRWKH/HIW7UDFNDQGJUDGXDOO\LQFUHDVHWRWKH0RQR6XUURXQG7UDFN

7KH7UDFNVPXVWWKHQEHURXWHGWRWKHFRUUHFW)LOPSDWKVLQWKH6XUURXQG0RQLWRULQJ3DQHO7KH)LOPSDWKVDUHDXWRPDWLFDOO\DVVLJQHGWRVSHDNHUSRVLWLRQV

DFFRUGLQJWRWKHQXPEHURI)LOPSDWKVVHOHFWHGLQWKHFXUUHQW'HVN6HWXS

7KHUHFDQEHRU)LOPSDWKV,QWKHH[DPSOHLQWKHVLPSOLILHG6XUURXQG0RQLWRULQJGLDJUDPWKHUHDUH)LOPSDWKVWKDWKDYHEHHQDXWRPDWLFDOO\DVVLJQHGWRWKHVSHDNHUEXWWRQVWKDWDUHXVHGIRU/&56PRQLWRULQJ/&5DQG/6

6WHP&RQILJXUDWLRQ

7KH6WHPVDUHQRUPDOO\SUHFRQILJXUHGXVLQJ6WHP6HWXSLQ'HVN(GLW+RZHYHUWKH6WHPVFDQDOVREHFRQILJXUHGRUPRGLILHGIURPWKHFRQVROHVXUIDFH

7RFKDQJHWKHSDQGHVLJQDWRUVIRU7UDFNVEXVVHVDQG*URXSVEULQJWKH

UHTXLUHG7UDFNVEXVVHVDQGPRQR*URXSVWRWKHVXUIDFHZLWKWKH3DWKDFFHVVNH\V3UHVVWKH2873873$7&+NH\

5RWDWH/RJLFDWRURQWKHUHTXLUHGSDWKVWRVHWWKHSDQGHVLJQDWRUV

3UHVVWKH2873873$7&+NH\DJDLQZKHQDOOFKDQJHVKDYHEHHQPDGH

52


53/153


)RUPDW6XUURXQG6RXQG([DPSOH6HOHFWLQJZKLFK3DWKVIRUPWKH6WHP&OLFNRQ'HVN(GLWLQWKHGURSGRZQ7RROV0HQXDQGWKH)LOLQJSDJHRI'HVN(GLWZLOOEH

GLVSOD\HG&OLFNRQWKH7UDFNVWDEWRVKRZWKH7UDFNVSDJHDQGFOLFNWKH3DQ0DFURVNH\7KH3DQ0DFURVGLDORJXHER[ZLOOEHGLVSOD\HG&OLFNWKHUDGLREXWWRQIRU)RUPDWDQGFOLFN2.WKH)RUPDWZLOOEHSURSDJDWHG

DFURVVDOOWKH7UDFNVLQVHWVRI&OLFNWKH)LOLQJWDEPDNLQJVXUHWKH$OORFDWH2Q6DYHFKHFNER[LVFKHFNHG&OLFNWKH6DYHEXWWRQ7KH'HVN6HWXSZLOOEHVDYHGDQGWKHFKDQJHVZLOOEHDOORFDWHGWRWKHFRQVROH

&OLFNWKH([LWEXWWRQ

7RDVVLJQ7UDFNVWRWR6WHP$3UHVVWKH6WHP$NH\RQWKH3(&'LUHFW3DQHO3UHVVDQGKROGWKHNH\RQWKH

3(&'LUHFW3DQHO3UHVVWKHNH\RQWKH/RZHU5RXWLQJ3DQHO75$&.ZLOOEHGLVSOD\HGLQWKHDOSKDDERYHWKHNH\7KHOHGLQWKHNH\RQWKH/RZHU5RXWLQJ0DWUL[ZLOOLOOXPLQDWHUHG5HSHDWIRUWKHWRNH\VRQWKH3(&'LUHFW3DQHODVVLJQLQJ7UDFNVWRUHVSHFWLYHO\

7UDFNVWRQRZIRUP6WHP$

7RVHOHFWWKH7UDFNVEXVVHVIRUD6WHP

3UHVVWKHUHTXLUHG6WHPNH\$/RQWKH3(&'LUHFW3DQHO3UHVVDQGKROGWKH

7KH/RZHU5RXWLQJ0DWUL[ZLOOGLVSOD\DYDLODEOHVRXUFHVJUHHQOHGV

6HOHFWWKHSDJHVIRU7UDFNVEXVVHVE\SUHVVLQJWKHQXGJH

NH\VLIWKHUHDUHPRUHWKDQ7UDFNV

3UHVVWKHQXPEHUNH\RIWKHUHTXLUHGSDWKRQWKH/RZHU5RXWLQJ0DWUL[WKHOHGZLOOLOOXPLQDWHUHG5HOHDVHWKH

NH\7KH7UDFNQDPHZLOOEHGLVSOD\HGDERYHWKHNH\

5HSHDWIRUWKHUHPDLQGHURIWKH6WHPNH\VHWFDFFRUGLQJWRWKH6WHP7\SHHJIRU/&56IRUHWF

7UDFNVEXVVHVDUHGHURXWHGIURP6WHPVLQWKHVDPHZD\E\SUHVVLQJWKH

VHOHFWHGVRXUFHUHGOHGWRWRJJOHLWRXWJUHHQOHG2QO\7UDFNVEXVVHVFDQEHXVHGWREXLOGWKH)LOP6WHPV7KLVLVEHFDXVHWKHUHLVQR%XV7DSHVZLWFKLQJRU7DSH6HQGV5HWXUQVRQ*URXSVVR*URXSVFDQQRWPDNHXVHGRIWKH3(&'LUHFW3DQHO+RZHYHUSDQGHVLJQDWRUVRQPRQR*URXSVFDQEHXVHIXOWRRXWSXWDSDQQHGVLJQDOWRDQHIIHFWVXQLWIRULQVWDQFHZKLFKLVWKHQORRSHGEDFNLQWRWKHFRQVROH

7RVHOHFWWKHVSHDNHUVIRUPRQLWRULQJDVWHP3UHVVWKH$/NH\RQWKH3(&'LUHFW3DQHOIRUWKHUHTXLUHGVWHP3UHVVDQGKROG

WKHUHTXLUHGVSHDNHUNH\RQWKH6XUURXQG0RQLWRULQJSDQHO

3UHVVWKHNH\VRQWKH3(&'LUHFWSDQHOZLWKD7UDFNEXVZKLFKKDVWKH

FRUUHFW3DQ'HVLJQDWLRQ

53


54/153


7KHLQWHJUDOOHGLQWKHQXPEHUNH\ZLOOWXUQUHGRURUDQJHIODVKLQJDFFRUGLQJWRZKHWKHURUQRWWKH6WHPLVVHOHFWHGIRUPRQLWRULQJRQWKH67(06(/VHFWLRQRIWKH6XUURXQG0RQLWRULQJ3DQHO

5HOHDVHWKHVSHDNHUNH\&RQWLQXHWRVHOHFW6WHPHOHPHQWVWRWKHVSHDNHUV

D 7KLVFDQDOVREHGRQHLQUHYHUVHSUHVVDQGKROGWKHQXPEHUNH\WKHQSUHVVWKHVSHDNHUNH\7KHVSHDNHUVHOHFWNH\OHGVZLOOEHLOOXPLQDWHG

DFFRUGLQJWRWKH),/0W\SHLQWKHFXUUHQW'HVN6HWXSHJ,IIRXUZD\VXUURXQGVRXQG/&56LVVHOHFWHGWKH/&5DQG/6NH\OHGVZLOOLOOXPLQDWH

D ,WLVSRVVLEOHWRXVH6WHPVIRUQDUURZHUVXUURXQGIRUPDWVWKDQWKH'HVN6HWXSKDVSURYLGHGZLWKWKHQXPEHURI)LOPSDWKV)RULQVWDQFHDQ/&566WHPFDQEHPRQLWRUHGRQDPRQLWRULQJVHWXSE\URXWLQJWKHUHDUVXUURXQGFKDQQHOWRERWKWKHOHIWDQGULJKWVXUURXQGPRQLWRUV

D ,WLVSRVVLEOHIRUPRUHWKDQRQH7UDFNZLWKLQD6WHPWRIHHGWKHVDPHVSHDNHUVXFKDVWZR/&5GLDORJXHVHWVLQRQH6WHP

)RUPDW6XUURXQG6RXQG([DPSOH6HOHFWWKHVSHDNHUVIRUPRQLWRULQJWKH6WHP3UHVVDQGKROGWKHNH\RQWKH3(&'LUHFWSDQHO3UHVVWKH/NH\RQWKH6XUURXQG0RQLWRULQJSDQHO7KHOHGLQWKH/NH\ZLOOFKDQJHIURPJUHHQWRHLWKHUVROLGUHGRU

IODVKLQJRUDQJHGHSHQGLQJRQZKHWKHURUQRW6WHP$LVFXUUHQWO\VHOHFWHGWRWKH0RQLWRURXWSXWV5HOHDVHWKHNH\5HSHDWLQVHTXHQFHIRUWKHUHPDLQLQJ6WHPPHPEHUVLHRQ&RQ5HWF

,WLVDOVRSRVVLEOHWRGRWKLVURXWLQJLQUHYHUVHE\KROGLQJGRZQDVSHDNHUNH\DQGVHOHFWLQJZKLFKWUDFNLQD6WHPLVURXWHGWRLW

6WHP5RXWLQJ

7KLVSURFHGXUHLVXVHGWRURXWH&KDQQHOV7UDFNV

QRWXVHGLQ6WHPV*URXSVDQG3UH'XEVWR7UDFNVEXVVHVLQ6WHPV

%ULQJWKHUHTXLUHGSDWKRU3UHGXEWRWKHVXUIDFHE\SUHVVLQJLWV3DWKDFFHVVNH\3UHVVWKH67(06(/NH\

7KH6WHPOHWWHUV$%&HWFZLOOLOOXPLQDWHLQ

VHTXHQFHRQWKH6WHP5RXWLQJ'LVSOD\HDFKWLPHWKH67(06(/NH\LVSUHVVHG

$VHDFK6WHPLVVHOHFWHGWKHOHGVLQWKHQXPEHU

NH\VZLOOLOOXPLQDWHJUHHQWRLQGLFDWHWKHDYDLODELOLW\RI6WHPPHPEHUVZKLFKFDQEHURXWHGGHVWLQDWLRQV1ROHGVZLOOLOOXPLQDWHIRU6WHPVZKLFKKDYHQRWEHHQFRQILJXUHG

3UHVVWKHUHTXLUHGQXPEHUNH\VRU5287(72$//7KHOHGVLQWKHVHOHFWHGQXPEHUNH\VZLOOLOOXPLQDWHUHG

7KHFRUUHVSRQGLQJQXPEHUVRQWKH6WHP5RXWLQJ'LVSOD\ZLOOLOOXPLQDWH

54


55/153


7LS$VKRUWFXWLVDYDLODEOHIRU6WHPVHOHFWLRQ+ROGGRZQWKH67(06(/NH\DQGWKHQSUHVVQXPEHUIRU6WHP$IRU6WHP%HWF

3DQQLQJ&RQWUROV

7KHDSSURSULDWHSDQQLQJFRQWUROVDUHDXWRPDWLFDOO\HQDEOHGDFFRUGLQJWRWKHSDQGHVLJQDWRUVRQURXWLQJGHVWLQDWLRQV7UDFNVRU*URXSVIRUWKHSDWK

7KHSDQQLQJFRQWUROVFDQEHVZLWFKHGRXWFRPSOHWHO\IURPWKHVWULSRUDSDQQLQJD[LVFDQEHIUR]HQZKHQWKHSDWKLVSDQQHGE\D-R\VWLFN

7RFRPSOHWHO\GLVDEOHDSDQQLQJD[LVSUHVV,23$1DQGSUHVVDQGKROG

21&/($57RXFK/RJLFDWRUVWRDVUHTXLUHG

7KHDVVRFLDWHGDOSKDVZLOOGLVSOD\287ZKHQWKH/RJLFDWRUVDUHGLVDEOHG5HOHDVH21&/($5

$SDQQLQJD[LVFDQEHIUR]HQDWDUHTXLUHGVHWWLQJDVRSSRVHGWREHLQJFRPSOHWHO\LQDFWLYHXVLQJWKH-R\VWLFN0RGXOH

6XUURXQG0RQLWRULQJ

:KHQWKHILOPVWHPVKDYHEHHQIXOO\FRQILJXUHGWKH6XUURXQG0RQLWRULQJ3DQHODOORZVYDULRXVPRQLWRULQJRSWLRQVLQFOXGLQJSUHGHILQHGVHWVRIDFWLYHVSHDNHUVVXPPLQJRIILOPVWHPVDQGRUH[WHUQDOVRXUFHVPRQRVXPHWF

7KHRXWOLQHPRQLWRULQJVFKHPDWLFVKRZVKRZWKH6XUURXQG0RQLWRUSDQHOKDQGOHVWKHVLJQDOSDWKV

55


56/153


0RQLWRULQJWKH6WHPV

7KH67(06(/VHFWLRQRIWKH6XUURXQG0RQLWRULQJSDQHOLVXVHGWRVHOHFWZKLFK6WHPDQGRUH[WHUQDOPDFKLQHLVEHLQJPRQLWRUHG

7RVHOHFWDVLQJOH6WHPWRPRQLWRU0DNHVXUHWKHOHGDERYHWKH680NH\LVRIISUHVVWKHNH\LIWKHOHGLV

LOOXPLQDWHG3UHVVWKH$WR/NH\RQWKH67(06(/VHFWLRQ7KHOHGDERYHWKHNH\ZLOOLOOXPLQDWHDQGWKHSUHYLRXVVHOHFWLRQZLOOEHFDQFHOOHG

7RVHOHFWPXOWLSOH6WHPVDQGRUH[WHUQDOPDFKLQHVWRPRQLWRUSUHVVWKH680NH\7KHOHGDERYHWKHNH\ZLOOLOOXPLQDWH3UHVVWKH$WR/NH\VDQGRUWKH0&0&0&NH\VDVUHTXLUHG7KHOHGVDERYHWKHVHOHFWHGNH\VZLOOLOOXPLQDWH$OOWKHVHOHFWHG6WHPVDQGPDFKLQHVZLOOEHPRQLWRUHG

(DFKWLPHDNH\LVSUHVVHGLWZLOOWRJJOHRQRURII

56


57/153


0RQLWRULQJ([WHUQDO0DFKLQHV

7KH6XUURXQG0RQLWRULQJ3DQHOSURYLGHVWKUHHNH\V0&0&DQG0&IRUVHOHFWLQJXSWRWKUHHH[WHUQDOPXOWLWUDFNVRXUFHVZKLFKFDQEHURXWHGWRWKHVXUURXQGPRQLWRURXWSXWV

7KH6XEPL[HUVHFWLRQLVXVHGWRURXWHWKHVLJQDOVIURPWKHH[WHUQDOVRXUFHVWRWKHVXUURXQGPRQLWRURXWSXWV7KHQXPEHURIWUDFNVDYDLODEOHRQHDFKH[WHUQDOPDFKLQHPXVWEHVHWXSRQWKH&RQILJSDJHRI'HVN(GLW

7RVHOHFWDQH[WHUQDOPDFKLQHIRUURXWLQJ

3UHVVDQGKROGWKHEODQNNH\QH[WWRWKHDOSKD

GLVSOD\RQWKH6XEPL[HUVHFWLRQ

3UHVVWKHUHTXLUHGPDFKLQHNH\0&0&RU0&7KHDOSKDRQWKH6XEPL[HUVHFWLRQZLOO

GLVSOD\WKHVHOHFWHGVRXUFH

7KHOHGVLQWKHQXPEHUNH\VZLOOLOOXPLQDWHJUHHQWR

LQGLFDWHWKHDYDLODEOHQXPEHURIWUDFNV

)RUPDW6XUURXQG6RXQG([

Neve DFC Manual

Documents

Transcript of Neve DFC Manual