Professional Documents
Culture Documents
Cat Fluid Recommendations Book PDF
Cat Fluid Recommendations Book PDF
Cat Fluid Recommendations Book PDF
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
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
,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\
6(%8
0DLQWHQDQFH 6HFWLRQ
/XEULFDQW ,QIRUPDWLRQ
0DLQWHQDQFH 6HFWLRQ
/XEULFDQW 6SHFLILFDWLRQV
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
L
/XEULFDQW ,QIRUPDWLRQ
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
,Q RUGHU WR REWDLQ DGGLWLRQDO LQIRUPDWLRQ RQ &DW
GHVLJQHG DQG SURGXFHG ILOWUDWLRQ SURGXFWV UHIHU WR WKH
5HIHUHQFH 0DWHULDO DUWLFOH )LOWHUV DQG
0LVFHOODQHRXV 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
$SSURSULDWH OXEULFDQWV RIIHU WKH IROORZLQJ
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
7DEOH
&DW (QJLQH /XEULFDQWV IRU DQG & 6HULHV (QJLQHV
9LVFRVLW\ *UDGH
6$( :
&DW '(28/6
6$( :
&DW '(2
&DW '(2
6$( :
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 $GYDQFHG 0RO\ *UHDVH
&DW 8OWUD 0RO\ *UHDVH PXOWLSOH 1/*, *UDGHV
*UHDVH
&RRODQWV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
7DEOH
&DW (QJLQH /XEULFDQWV 5HFRPPHQGDWLRQV IRU DQG & 6HULHV 'LHVHO (QJLQHV
7LHU &HUWLILHG
&DW '(28/6
3UHIHUUHG
&DW '(28/6
&DW '(2 PXOWLJUDGH RLOV
&RPPHUFLDO /XEULFDQWV
1RQ5RDG 7LHU (3$ &HUWLILHG HQJLQHV ZLWK DIWHUWUHDWPHQW GHYLFHV UHTXLUH WKH XVH RI &DW '(28/6 SUHIHUUHG RU FRPPHUFLDO RLOV WKDW PHHW
&DW (&) $3, &- UHTXLUHPHQWV DQG KDYH SDVVHG WKH ILHOG SURRI RI SHUIRUPDQFH
& PDULQH HQJLQH DUH 7LHU &HUWLILHG 7KHVH HQJLQHV DUH HTXLSSHG ZLWK DIWHUWUHDWPHQW GHYLFHV
(QJLQHV XVLQJ D VLQJOH JUDGH '(2 UHIHU WR \RXU &DW GHDOHU WR YHULI\ WKH DVK OHYHO LQ WKH RLO
&DW (&)
&DW (&)
&DW (&)D
&DW (&) VSHFLILFDWLRQV GHVFULEH WKH PLQLPXP WHFKQLFDO UHTXLUHPHQWV IRU HQJLQH RLOV UHFRPPHQGHG IRU XVH LQ &DW HQJLQHV &DW GLHVHO HQJLQH
RLOV SHUIRUPDQFH H[FHHG (&) VSHFLILFDWLRQV
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
9LVFRVLW\ *UDGH
6SHFLILFDWLRQ
5HTXLUHPHQWV
6$(
$3, &)
&DW '(28/6
PXOWLJUDGH
6$( :
$3, &-
6$( :
)LHOG 3HUIRUPDQFH
(YDOXDWLRQ DQG $3,
&-&DW (&)
$&($ (
)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 $3, &- TXDOLILHG
1RWH &RPPHUFLDO RLOV WKDW PHHW WKH FKHPLFDO OLPLWV
DERYH VKRXOG DOVR KDYH D ILHOG SURRI RI SHUIRUPDQFH
LQ RUGHU WR EH XVHG LQ & HQJLQHV )LHOG 3URRI RI
3HUIRUPDQFH HQVXUHV WKDW WKH RLO SHUIRUPV
DGHTXDWHO\ LQ & DQG HQJLQHV 5HIHU WR WKLV
6SHFLDO 3XEOLFDWLRQ )LHOG (YDOXDWLRQ RI &RPPHUFLDO
2LOIRU GHWDLOV
127,&(
'R QRW DGG QHZ HQJLQH RLO ZDVWH HQJLQH RLO RU DQ\ RLO
SURGXFW WR WKH IXHO XQOHVV WKH HQJLQH LV GHVLJQHG DQG
FHUWLILHG WR EXUQ GLHVHO HQJLQH RLO IRU H[DPSOH &DWHU
SLOODU 256 GHVLJQHG IRU ODUJH HQJLQHV &DWHUSLOODU H[
SHULHQFH KDV VKRZQ WKDW DGGLQJ RLO SURGXFWV WR 7LHU
HQJLQH IXHOV 8 6 (3$ 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
$GGLQJ RLO SURGXFWV WR WKH IXHO PD\ UDLVH WKH VXOIXU
OHYHO RI WKH IXHO DQG PD\ FDXVH IRXOLQJ RI WKH IXHO V\V
WHP DQG ORVV RI SHUIRUPDQFH
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
7%1 UHFRPPHQGDWLRQV IRU DQG & 6HULHV &DW HQJLQHV WKDW XVH GLVWLOODWH IXHO RU ELRGLHVHO IXHO
&DW '(28/6
&DW '(2
0LQ
&DW '(2
&DW '(28/6
0LQ
&DW '(2
0LQ
&DW '(28/6 DSSOLHV WR &DW '(28/6 6$( : 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
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
1RWH 7KH XVH RI &DW 626 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 626 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 )XHO 6SHFLILFDWLRQV VHFWLRQ 'LHVHO )XHO 6XOIXU
WRSLF IRU DGGLWLRQDO LQIRUPDWLRQ
1RWH 'R 127 XVH RQO\ WKLV 6SHFLDO 3XEOLFDWLRQ DV
D EDVLV IRU GHWHUPLQLQJ RLO GUDLQ LQWHUYDOV
/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
6(%8
/XEULFDQW 6SHFLILFDWLRQV
(QJLQH 2LO
6HYHUH $SSOLFDWLRQV
$Q HQJLQH ZKLFK RSHUDWHV RXWVLGH RI QRUPDO
FRQGLWLRQV LV RSHUDWLQJ LQ D VHYHUH VHUYLFH
DSSOLFDWLRQ
5HOLDELOLW\
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
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
WKH JXLGHOLQHV WKDW DUH OLVWHG LQ WKLV 6SHFLDO
3XEOLFDWLRQ )XHO 6SHFLILFDWLRQV WRSLF
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
6(%8
/XEULFDQW 6SHFLILFDWLRQV
)LHOG (YDOXDWLRQ RI &RPPHUFLDO 2LO
&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
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
/ [ USP
%0(3 N3D
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6\QWKHWLF %DVHVWRFN 2LOV
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
/XEULFDQW 6SHFLILFDWLRQV
$IWHUPDUNHW 2LO $GGLWLYHV
6HOHFW WKH SURSHU &DW RLO RU FRPPHUFLDO RLO WKDW
KDV SDVVHG WKH )LHOG 3HUIRUPDQFH (YDOXDWLRQ
5HIHU WR WKH 6HOHFWLQJ D &RPPHUFLDO 2LO DUWLFOH LQ
WKH /XEULFDQW 6SHFLILFDWLRQV VHFWLRQ RI WKLV
6SHFLDO 3XEOLFDWLRQ
5HIHU WR WKH DSSURSULDWH /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 0DLQWHQDQFH ,QWHUYDO 6FKHGXOH
6(%8
6(%8
/XEULFDQW 6SHFLILFDWLRQV
6SHFLDOW\ /XEULFDQWV
L
6SHFLDOW\ /XEULFDQWV
60&6 &RGH
7DEOH
6L]H
J R]
/XEULFDQW
3 7KUHDG
J R]
&RPSRXQG
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
3DUW 1XPEHU
6L]H
'RVDJH
8
8
8
6(%8
/XEULFDQW 6SHFLILFDWLRQV
626 6HUYLFHV 2LO $QDO\VLV
)RU DGGLWLRQDO LQIRUPDWLRQ FRQFHUQLQJ FROGZHDWKHU
RSHUDWLRQ UHIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ )XHO
6SHFLILFDWLRQV VHFWLRQ $OVR UHIHU WR WKLV 6SHFLDO
3XEOLFDWLRQ &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 /XEULFDQW 9LVFRVLWLHV IRU $PELHQW 7HPSHUD
WXUHV WDEOHV 0DLQWHQDQFH 6HFWLRQ 0LQLPXP 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 /XEULFDQW 9LVFRVLWLHV IRU $PELHQW 7HP
SHUDWXUHV WDEOHV DQG WKH WDEOH IRRWQRWHV IRU
H[FHSWLRQV
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
L
6(%8
/XEULFDQW 6SHFLILFDWLRQV
626 6HUYLFHV 2LO $QDO\VLV
7DEOH
*XLGHOLQH
2[LGDWLRQ
6RRW
6XOIDWLRQ
:HDU 0HWDOV
:DWHU
PD[LPXP
*O\FRO
)XHO 'LOXWLRQ
6(%8
/XEULFDQW 6SHFLILFDWLRQV
626 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
5HFRPPHQGHG ,QWHUYDO
2LO 7\SH
&DW '(2
&DW '(28/6
6(%8
/XEULFDQW 6SHFLILFDWLRQV
/XEULFDWLQJ *UHDVH
,OOXVWUDWLRQ
J
/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 0RO\ 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 FKHPLFDOO\
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
6(%8
/XEULFDQW 6SHFLILFDWLRQV
/XEULFDWLQJ *UHDVH
1RW 5HFRPPHQGHG
7DEOH
1/*,
*UDGH
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH $SSOL
FDWLRQV ZLWK
([WUHPHO\
+HDY\ /RDGV
& ) 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
1/*,
*UDGH
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH
$SSOLFDWLRQV
6HYHUH $SSOL
FDWLRQV ZLWK
([WUHPHO\
+HDY\ /RDGV
0XOWLSXUSRVH
*UHDVH
15
15
15
15
15
)DLU
15
15
15
15
15
15
0DULQH
0XOWLSXUSRVH
*RRG
([FHOOHQW
([FHOOHQW
([FHOOHQW
*RRG
([FHOOHQW
([WUHPH
6HYHUH
$SSOLFDWLRQV 3UHVVXUH (3
1/*,
*UDGH
2SHUDWLQJ
&RQGLWLRQV
/RZ 7HPS
3XPSDELOLW\
6HUYLFH /LIH
6KHDU 6WDELOLW\
/RZ (QYLURQ
PHQWDO ,PSDFW
&RUURVLRQ
3URWHFWLRQ
:DWHU :DVKRXW
5HVLVWDQFH
2SWLPXP 7HPSHUD
WXUH 5DQJH
0XOWLSXUSRVH
*UHDVH
DERYH &
)
*RRG
1R
)DLU
)DLU
DERYH & )
9HU\ *RRG
1R
*RRG
*RRG
0DULQH 0XOWLSXUSRVH
DERYH & )
([FHOOHQW
<HV
([FHOOHQW
([FHOOHQW
6(%8
)XHO 6SHFLILFDWLRQV
*HQHUDO )XHO ,QIRUPDWLRQ
)XHO 6SHFLILFDWLRQV
L
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 &DW
6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 1RQURDG
'LHVHO (QJLQHV WDEOH LQ WKLV 6SHFLDO 3XEOLFDWLRQ
'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 &RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV IRU )XHOV WKDW DUH SURYLGHG LQ
WKLV FKDSWHU 'LVSHQVH IXHOV RI ,62
FOHDQOLQHVV OHYHO RU FOHDQHU LQWR WKH PDFKLQH RU
HQJLQH IXHO WDQN DV GHWDLOHG LQ WKH &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 &DW 6SHFLILFDWLRQ IRU 'LVWLOODWH
'LHVHO )XHO IRU 1RQURDG 'LHVHO (QJLQHV WDEOH LQ
WKLV 6SHFLDO 3XEOLFDWLRQ '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
6(%8
)XHO 6SHFLILFDWLRQV
)XHO ,QIRUPDWLRQ IRU 'LHVHO (QJLQHV
L
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 $IWHUPDUNHW 3URGXFWV DQG :DUUDQW\
DUWLFOH
)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
'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
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
&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
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
,OOXVWUDWLRQ
J
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
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
,OOXVWUDWLRQ
J
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
1RWH (1 FXUUHQWO\ DOORZV XS WR SHUFHQW
ELRGLHVHO EOHQGV 5HIHU WR WKH )XHO 6SHFLILFDWLRQV
VHFWLRQ DQG WKLV 6SHFLDO 3XEOLFDWLRQ %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 'LVWLOODWH 'LHVHO )XHO
DUWLFOH $IWHUPDUNHW )XHO $GGLWLYHV DQG &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
$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
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
(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
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
6(%8
)XHO 6SHFLILFDWLRQV
&KDUDFWHULVWLFV RI 'LHVHO )XHO
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
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 /XEULFLW\ DQG /RZ 6XOIXU )XHO 'LHVHO
/6' DQG 8OWUD /RZ 6XOIXU 'LHVHO 8/6' )XHO WRSLF
LQ WKLV 6SHFLDO 3XEOLFDWLRQ &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
6(%8
)XHO 6SHFLILFDWLRQV
)XHO 5HFRPPHQGDWLRQV
7KHUPDO 6WDELOLW\
&DW UHFRPPHQGV WKH XVH RI WKH $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 & )
)XHO 5HFRPPHQGDWLRQV
127,&(
7KHVH UHFRPPHQGDWLRQV DUH VXEMHFW WR FKDQJH ZLWK
RXW QRWLFH &RQVXOW \RXU ORFDO &DW GHDOHU IRU WKH PRVW
XS WR GDWH UHFRPPHQGDWLRQV
L
6(%8
)XHO 6SHFLILFDWLRQV
'LHVHO )XHO 5HFRPPHQGDWLRQV
60&6 &RGH
61 5%8S
7KH LQIRUPDWLRQ DQG JXLGHOLQHV JLYHQ LQ WKLV 6SHFLDO
3XEOLFDWLRQ '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
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
L
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 &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 $670 ' *UDGHV
1R ' RU 1R ' DOO OLVWHG VXOIXU OHYHOV JHQHUDOO\
PHHW WKH WDEOH UHTXLUHPHQWV
,Q (XURSH GLHVHO IXHOV WKDW DUH LGHQWLILHG DV PHHWLQJ
WKH ODWHVW YHUVLRQ RI (XURSHDQ 6WDQGDUG (1
JHQHUDOO\ PHHW WKH WDEOH UHTXLUHPHQWV
7DEOH LV IRU GLHVHO IXHOV WKDW DUH GLVWLOOHG IURP
FRQYHQWLRQDO VRXUFHV FUXGH RLO VKDOH RLO RLO VDQGV
'LHVHO IXHOV IURP RWKHU VRXUFHV FRXOG H[KLELW
GHWULPHQWDO SURSHUWLHV WKDW DUH QRW GHILQHG RU
FRQWUROOHG E\ WKLV VSHFLILFDWLRQ
127,&(
8OWUD /RZ 6XOIXU 'LHVHO 8/6' IXHO SHUFHQW
SSP PJNJ VXOIXU LV UHTXLUHG E\ UHJXODWLRQ IRU
XVH LQ HQJLQHV FHUWLILHG WR QRQURDG 7LHU VWDQGDUGV
86 (3$ 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$< UHTXLUH WKH XVH RI 8/6' IXHO &RQVXOW IHGHUDO
VWDWH DQG ORFDO DXWKRULWLHV IRU JXLGDQFH RQ IXHO UH
TXLUHPHQWV IRU \RXU DUHD
7\SLFDO DIWHUWUHDWPHQW V\VWHPV LQFOXGH 'LHVHO 3DUWLFX
ODWH )LOWHUV '3) 'LHVHO 2[LGDWLRQ &DWDO\VWV '2&
6HOHFWLYH &DWDO\WLF 5HGXFWLRQ 6&5 DQGRU /HDQ
12[ 7UDSV /17 2WKHU V\VWHPV PD\ DSSO\
/RZ VXOIXU GLHVHO /6' IXHO SHUFHQW SSP
PJNJ VXOIXU LV VWURQJO\ UHFRPPHQGHG IRU XVH LQ
HQJLQHV WKDW DUH SUH7LHU PRGHOV ZKLOH GLHVHO IXHO
ZLWK ! SHUFHQW SSP PJNJ VXOIXU LV DF
FHSWDEOH IRU XVH LQ DUHDV RI WKH ZRUOG ZKHUH DOORZHG
E\ ODZ 3UH7LHU HQJLQHV WKDW DUH HTXLSSHG ZLWK D
'LHVHO 2[LGDWLRQ &DWDO\VW '2& UHTXLUH WKH XVH RI
/6' IXHO RU 8/6' IXHO
8/6' IXHO RU VXOIXUIUHH GLHVHO IXHO DUH DSSOLFDEOH IRU
XVH LQ DOO HQJLQHV UHJDUGOHVV RI WKH HQJLQH 7LHU RU
6WDJH
8VH DSSURSULDWH OXEULFDWLQJ RLOV WKDW DUH FRPSDWLEOH
ZLWK WKH HQJLQH FHUWLILFDWLRQ DQG DIWHUWUHDWPHQW V\V
WHP DQG ZLWK WKH IXHO VXOIXU OHYHOV 5HIHU WR WKH 'LHVHO
)XHO 6XOIXU ,PSDFWV DUWLFOH RI WKLV )XHOV 6SHFLILFD
WLRQV VHFWLRQ DQG WR WKH /XEULFDQWV 6SHFLILFDWLRQV
VHFWLRQ RI WKLV 6SHFLDO 3XEOLFDWLRQ
7KH RYHUDOO TXDOLW\ RI WKH IXHO LV FULWLFDO WR WKH
VXFFHVVIXO RSHUDWLRQ RI HQJLQHV
(QJLQH RSHUDWLQJ FRQGLWLRQV SOD\ D NH\ UROH LQ
GHWHUPLQLQJ WKH HIIHFW WKDW IXHO VXOIXU ZLOO KDYH RQ
HQJLQH GHSRVLWV DQG RQ HQJLQH ZHDU 8VLQJ IXHOV ZLWK
KLJKHU WKDQ UHFRPPHQGHG IXHO VXOIXU OHYHOV FDQ RU ZLOO
FDXVH YDULRXV QHJDWLYH LPSDFWV )RU LQIRUPDWLRQ RQ
IXHO VXOIXU DQG IXHO VXOIXU LPSDFWV UHIHU WR WKH 'LHVHO
)XHO 6XOIXU DUWLFOH LQ WKLV )XHO 6SHFLILFDWLRQV VHFWLRQ
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
127,&(
'R QRW DGG QHZ HQJLQH RLO ZDVWH HQJLQH RLO RU DQ\ RLO
SURGXFW WR WKH IXHO XQOHVV WKH HQJLQH LV GHVLJQHG DQG
FHUWLILHG WR EXUQ GLHVHO HQJLQH RLO IRU H[DPSOH &DWHU
SLOODU256 GHVLJQHG IRU ODUJH HQJLQHV &DWHUSLOODU H[
SHULHQFH KDV VKRZQ WKDW DGGLQJ RLO SURGXFWV WR 7LHU
HQJLQH IXHOV 8 6 (3$ 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 &DWHUSLOODU
6SHFLILFDWLRQ IRU 'LVWLOODWH 'LHVHO )XHO IRU 2II+LJKZD\
'LHVHO (QJLQHV )XHOV WKDW DUH GHILQHG DV $670
' *UDGH 1R ' 6 RU $670 ' *UDGH
1R ' 6 JHQHUDOO\ PHHW &DW UHTXLUHPHQWV IRU
8/6'
5HIHU WR WKLV 6SHFLDO 3XEOLFDWLRQ &KDUDFWHULVWLFV RI
'LHVHO )XHO DUWLFOH IRU DGGLWLRQDO SHUWLQHQW LQIRUPDWLRQ
FRQFHUQLQJ IXHO OXEULFLW\ IXHO R[LGDWLRQ VWDELOLW\ IXHO
VXOIXU DQG DIWHUWUHDWPHQW GHYLFHV $OVR UHIHU WR
$670 'D WR WKH VSHFLILF HQJLQH 2SHUDWLRQ
DQG 0DLQWHQDQFH 0DQXDO DQG WR DIWHUWUHDWPHQW
GHYLFH GRFXPHQWDWLRQ IRU JXLGDQFH
1RWH &DW VWURQJO\ UHFRPPHQGV WKH ILOWUDWLRQ RI
GLVWLOODWH IXHO DQGRU ELRGLHVHOELRGLHVHO EOHQGV
WKURXJK D IXHO ILOWHU ZLWK D UDWLQJ RI IRXU PLFURQVF
DEVROXWH RU OHVV 7KLV ILOWUDWLRQ VKRXOG EH ORFDWHG RQ
WKH GHYLFH WKDW GLVSHQVHV WKH IXHO WR WKH IXHO WDQN IRU
WKH HQJLQH DQG DOVR RQ WKH GHYLFH WKDW GLVSHQVHV IXHO
IURP WKH EXON VWRUDJH WDQN 6HULHV ILOWUDWLRQ LV
UHFRPPHQGHG
1RWH 7KH RZQHU DQG WKH RSHUDWRU RI WKH HQJLQH KDV
WKH UHVSRQVLELOLW\ RI XVLQJ WKH FRUUHFW IXHO WKDW LV
UHFRPPHQGHG E\ WKH PDQXIDFWXUHU DQG DOORZHG E\
WKH 86 (3$ 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 &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 &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 $670 ' WHVW PHWKRG RU WKH
,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 $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 &KDUDFWHULVWLFV RI 'LHVHO
)XHO DUWLFOH $IWHUPDUNHW )XHO $GGLWLYHV DQG &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
$670
7HVW
,62 7HVW
PD[LPXP
'
PD[LPXP
ZHLJKW
'
'
$URPDWLFV
$VK
5HTXLUHPHQWV
FRQWLQXHG
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
7DEOH FRQWG
6SHFLILFDWLRQV
6SHFLILFDWLRQV
&HWDQH 1XPEHU
&ORXG 3RLQW
&RSSHU 6WULS
&RUURVLRQ
5HTXLUHPHQWV
PLQLPXP ',
HQJLQHV
PLQLPXP 3&
HQJLQHV
$670
7HVW
'
RU
'
'
1R PD[LPXP
'
,62 7HVW
'LVWLOODWLRQ
'
1R HTXLYD
OHQW WHVW
6HGLPHQW
PD[LPXP
ZHLJKW
'
'
/XEULFLW\
PP
LQFK PD[
LPXP DW &
)
'
1R HTXLYD
OHQW WHVW
&OHDQOLQHVV
'
7KHUPDO 6WDELOLW\
$3, *UDYLW\
OHJDO OLPLW
0LQLPXP RI
UHIOHFWDQFH DIWHU
DJLQJ IRU PL
QXWHV DW &
)
PLQLPXP
PD[LPXP
'
'
1R HTXLYD
OHQW WHVW
'
1R HTXLYD
OHQW WHVW
3RXU 3RLQW
& ) PLQL
PXP EHORZ DPEL
HQW WHPSHUDWXUH
'
6XOIXU
'
RU
'
RU
.LQHPDWLF 9LVFRVLW\
:DWHU DQG
6HGLPHQW
'
RU
'
FRQWLQXHG
,62 7HVW
PD[LPXP
'
$670
7HVW
:DWHU
5HTXLUHPHQWV
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
127,&(
,Q RUGHU WR PHHW H[SHFWHG IXHO V\VWHP FRPSRQHQW OLIH
PLFURQF DEVROXWH RU OHVV VHFRQGDU\ IXHO ILOWUDWLRQ LV
UHTXLUHG IRU DOO &DW GLHVHO HQJLQHV WKDW DUH HTXLSSHG
ZLWK FRPPRQUDLO IXHO V\VWHPV $OVR PLFURQF 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 PLFURQF DEVROXWH RU OHVV
VHFRQGDU\ IXHO ILOWUDWLRQ LV VWURQJO\ UHFRPPHQGHG
1RWH WKDW DOO FXUUHQW &DW GLHVHO HQJLQHV DUH IDFWRU\
HTXLSSHG ZLWK &DW $GYDQFHG (IILFLHQF\ PLFURQF
DEVROXWH IXHO ILOWHUV
,Q RUGHU WR REWDLQ DGGLWLRQDO LQIRUPDWLRQ RQ &DW
GHVLJQHG DQG SURGXFHG ILOWUDWLRQ SURGXFWV UHIHU WR
WKLV 6SHFLDO 3XEOLFDWLRQ 5HIHUHQFH 0DWHULDO DUWLFOH
)LOWHUV DQG 0LVFHOODQHRXV WRSLFV DQG WKHQ FRQWDFW
\RXU &DW GHDOHU IRU DVVLVWDQFH ZLWK ILOWUDWLRQ
UHFRPPHQGDWLRQV IRU \RXU &DW PDFKLQH
&RQWDPLQDWLRQ &RQWURO
5HFRPPHQGDWLRQV IRU )XHOV
)XHOV RI ,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 $V D
UHVXOW SDUWLFOH FRQWDPLQDQWV DV VPDOO DV P FDQ
FDXVH VFRULQJ DQG VFUDWFKLQJ RI LQWHUQDO SXPS DQG
LQMHFWRU VXUIDFHV DQG RI LQMHFWRU QR]]OHV
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
8VH KLJKTXDOLW\ IXHOV SHU UHFRPPHQGHG DQG
UHTXLUHG VSHFLILFDWLRQV UHIHU WR WKH )XHO FKDSWHU
LQ WKLV 6SHFLDO 3XEOLFDWLRQ
)LOO PDFKLQH IXHO WDQNV ZLWK IXHOV RI ,62
FOHDQOLQHVV OHYHO RU FOHDQHU LQ SDUWLFXODU IRU
HQJLQHV ZLWK FRPPRQ UDLO DQG XQLW LQMHFWLRQ
V\VWHPV :KHQ \RX UHIXHO WKH PDFKLQH ILOWHU WKH
IXHO WKURXJK D P DEVROXWH ILOWHU %HWD XS
WR LQ RUGHU WR UHDFK WKH UHFRPPHQGHG
FOHDQOLQHVV OHYHO 7KLV ILOWUDWLRQ VKRXOG EH ORFDWHG
DW WKH GHYLFH WKDW GLVSHQVHV WKH IXHO WR WKH HQJLQH
RU PDFKLQH IXHO WDQN ,Q DGGLWLRQ ILOWUDWLRQ DW WKH
GLVSHQVLQJ SRLQW VKRXOG KDYH WKH DELOLW\ WR UHPRYH
ZDWHU WR HQVXUH IXHO LV GLVSHQVHG DW SSP ZDWHU
RU OHVV
&DWHUSLOODU UHFRPPHQGV WKH XVH RI EXON IXHO ILOWHU
FRDOHVFHU XQLWV ZKLFK UHPRYH ERWK SDUWLFXODWH
FRQWDPLQDWLRQ DQG ZDWHU LQ D VLQJOH SDVV 7KHVH
XQLWV KDYH WKH DELOLW\ WR FOHDQ IXHO WR ,62
RU FOHDQHU DQG UHPRYH IUHH ZDWHU WR SSP
PJNJ RU OHVV &DW RIIHUV KHDY\GXW\ ILOWHU
FRDOHVFHU XQLWV WR DFFRPPRGDWH IXHOLQJ UDWHV IURP
WR JSP JDOORQV SHU PLQXWH &DW FXVWRP
GHVLJQV ILOWHU FRDOHVFHU XQLWV VSHFLILFDOO\ IRU WKH
FRQGLWLRQV RI IXHO DW WKH ZRUNVLWH LI QHHGHG
(QVXUH WKDW \RX XVH &DW$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 ,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
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
*UDGH
0,/'7/8
-3
0,/'7/)
-3
$670 'D
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
6(%8
)XHO 6SHFLILFDWLRQV
'LVWLOODWH 'LHVHO )XHO
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
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
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
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
3URGXFWLRQ \HDU7LHU6WDJH
(QJLQH PRGHO
8S WR %
&
$OO \HDUV
8S WR %
8S WR % FDQ EH XVHG LQ WKHVH HQJLQHV % KDV WR EH SHU &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ $670 ' RU (1
0RGHOV ZLWKRXW DIWHUWUHDWPHQW RQO\
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
7DEOH
)LQDO %OHQG
% &DW GLVWLOODWH GLHVHO IXHO VSHFLILFDWLRQ
$670 ' RU (1
% $670 ' DQG $3, JUDYLW\
$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 626
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
*XLGHOLQHV
%LRGLHVHO WKDW PHHWV WKH UHTXLUHPHQWV WKDW DUH OLVWHG
LQ WKH &DW 6SHFLILFDWLRQ IRU %LRGLHVHO )XHO WKH ODWHVW
HGLWLRQ RI $670 ' RU WKH ODWHVW HGLWLRQ RI (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 %4
DFFUHGLWHG SURGXFHUV DQG PDUNHWHUV LV
UHTXLUHG /RRN IRU WKH %4 ELRGLHVHO TXDOLW\
DFFUHGLWDWLRQ SURJUDP FHUWLILFDWLRQ ORJR WKDW LV
DYDLODEOH WR GLVWULEXWRUV WKDW PHHW WKH UHTXLUHPHQWV RI
%4 )RU PRUH LQIRUPDWLRQ RQ WKH %4
SURJUDP JR WR ZZZ%4RUJ
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
7DEOH
5LVNV DQG *XLGHOLQHV DVVRFLDWHG ZLWK WKH XVH RI ELRGLHVHO DQG ELRGLHVHO EOHQGV
3DUDJUDSK
UHIHUHQFH
5LVN5HFRPPHQGDWLRQ
%
%%
%%
1HJOLJLEOH
/RZ
0HGLXP
1HJOLJLEOH
/RZ
0HGLXP
1HJOLJLEOH
0HGLXP
+LJK
PLFURQV DEVROXWH
PLFURQV DEVROXWH
PLFURQV DEVROXWH
6LPLODU WR 'LHVHO
/RZ
/RZ0HGLXP
+LJK
0HGLXP
0HGLXP+LJK
+LJK
)HHGVWRFN LPSDFW
0HGLXP
0HGLXP
+LJK
/RZ
0HGLXP
+LJK
PRQWKV
PRQWKV
0D[LPXP DOORZHG
8QDFFHSWDEOH
8QDFFHSWDEOH
0HGLXP
+LJK
+LJK
0HGLXP
+LJK
+LJK
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
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
6(%8
)XHO 6SHFLILFDWLRQV
%LRGLHVHO
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
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 %LRGLHVHO DUWLFOH
% LQWHQGHG IRU EOHQGLQJ LQWR GLHVHO IXHO WKDW LV
H[SHFWHG WR JLYH VDWLVIDFWRU\ YHKLFOH SHUIRUPDQFH DW
IXHO WHPSHUDWXUHV DW RU EHORZ & ) VKDOO
FRPSO\ ZLWK D FROG VRDN ILOWHUDELOLW\ OLPLW RI
VHFRQGV PD[LPXP 3DVVLQJ WKH $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 &
)
7DEOH
7HVW 0HWKRG
7HVW 0HWKRG
8QLWV
8QLWHG 6WDWHV
,QWHUQDWLRQDO
6SHFLILF 3URSHU
WLHV RI )XHO
'HQVLW\ DW &
$670 '
,62
JFP
9LVFRVLW\ DW &
$670 '
,62
PP V F6W
)ODVK 3RLQW
$670 '
,62
&
PLQLPXP
3RXU 3RLQW
6XPPHU
:LQWHU
$670 '
,62
&
& ) PLQL
PXP EHORZ DPEL
HQW WHPSHUDWXUH
&ORXG 3RLQW
$670 '
&
5HSRUW
6XOIXU &RQWHQW
$670 '
'LVWLOODWLRQ
SHUFHQW (YDSRUDWLRQ
SHUFHQW (YDSRUDWLRQ
$670 '
$670 '
,62
&HWDQH 1XPEHU
$670 '
,62
6XOIDWHG $VK
$670 '
,62
SHUFHQW ZHLJKW
PD[LPXP
:DWHU6HGLPHQW &RQWHQW
$670 '
,62
SHUFHQW YROXPH
PD[LPXP
&RSSHU &RUURVLRQ
$670 '
,62
2[LGDWLRQ 6WDELOLW\
(1
(1
KRXUV
PLQLPXP
(VWHULILFDWLRQ
(1
(1
SHUFHQW YROXPH
PLQLPXP
$FLG 9DOXH
$670 '
(1
PJ .2+J
PD[LPXP
0HWKDQRO &RQWHQW
(1
(1
SHUFHQW ZHLJKW
PD[LPXP
0RQRJO\FHULGHV
$670 '
(1
SHUFHQW ZHLJKW
PD[LPXP
,62
,62
SHUFHQW ZHLJKW
/LPLWV
PD[LPXP
&
7R %H 'HWHUPLQHG
SHUFHQW ZHLJKW
PD[LPXP
PLQLPXP
1R
FRQWLQXHG
6(%8
)XHO 6SHFLILFDWLRQV
&UXGH )XHO 2LO
7DEOH FRQWG
7HVW 0HWKRG
'LJO\FHULGHV
7ULJO\FHULGHV
7HVW 0HWKRG
8QLWV
8QLWHG 6WDWHV
,QWHUQDWLRQDO
6SHFLILF 3URSHU
WLHV RI )XHO
$670 '
(1
SHUFHQW ZHLJKW
PD[LPXP
(1
SHUFHQW ZHLJKW
PD[LPXP
PD[LPXP
$670 '
/LPLWV
)UHH *O\FHULQ
$670 '
(1
SHUFHQW ZHLJKW
7RWDO *O\FHULQ
$670 '
(1
SHUFHQW ZHLJKW
PD[LPXP
3KRVSKRUXV &RQWHQW
$670 '
(1
SHUFHQW ZHLJKW
(1
(1
SSP
PD[LPXP
PD[LPXP
(1
(1
SSP
$670 '
VHFRQGV
PD[LPXP
&OHDQOLQHVV
$670 '
,62
5HFRPPHQGHG FOHDQOLQHVV OHYHO IRU IXHO DV GLVSHQVHG LQWR PDFKLQH RU HQJLQH IXHO WDQN LV ,62 RU FOHDQHU SHU ,62 RU $670
' 5HIHU WR WKH &RQWDPLQDWLRQ &RQWURO VHFWLRQ LQ WKLV 6SHFLDO 3XEOLFDWLRQ
5HIHUHQFHG 'RFXPHQWV
5HIHU WR WKH 5HIHUHQFH 0DWHULDO )XHO VHFWLRQ RI WKLV
6SHFLDO 3XEOLFDWLRQ IRU WKH UHIHUHQFH PDWHULDO IRU WKH
LQIRUPDWLRQ LQ WKLV VHFWLRQ
6SHFLILFDWLRQV 5HTXLUHPHQWV
$670
7HVW
,62 7HVW
$URPDWLFV
PD[LPXP
'
,62
$VK
PD[LPXP
ZHLJKW
'
,62
FRQWLQXHG
'
,62
'
RU
'
,62
PLQLPXP
&ORXG SRLQW
7KH PD[LPXP
FORXG SRLQW PXVW
QRW H[FHHG WKH
ORZHVW H[SHFWHG
DPELHQW
WHPSHUDWXUH
&RSSHU VWULS
FRUURVLRQ
1R PD[LPXP
'
,62
'
,62
'
,62
7DEOH
,62 7HVW
&HWDQH QXPEHU
L
$670
7HVW
'LVWLOODWLRQ
5HLG 9DSRU
SUHVVXUH
FRQWLQXHG
6(%8
)XHO 6SHFLILFDWLRQV
&UXGH )XHO 2LO
$670
7HVW
,62 7HVW
'
6DOW
)ODVK SRLQW
OHJDO OLPLW
'
,62
$3, JUDYLW\
PLQLPXP
PD[LPXP
'
)UDFWLRQ RI NHUR
VHQH DQG GLVWLOODWH PLQLPXP
'
,62
'
RU
'
,62
RU
,62
6SHFLILF JUDYLW\
PLQLPXP
PD[LPXP
3RXU SRLQW
& ) PLQL
PXP EHORZ DPEL
HQW WHPSHUDWXUH
6XOIXU
9LVFRVLW\
:DWHU DQG
VHGLPHQW
PD[LPXP
YROXPH
'
,62
9DQDGLXP
SSP PD[LPXP
'
6RGLXP
SSP PD[LPXP
'
1LFNHO
SSP PD[LPXP
'
$OXPLQXP
SSP PD[LPXP
'
6LOLFRQ
SSP PD[LPXP
'
PJ SHU P/
JUDLQV86 JDO
PD[LPXP
'
,62
PP
LQFK PD[
LPXP DW &
)
'
/XEULFLW\
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
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 $OO IXHO JUDGHV OLVWHG LQ 7DEOHV DQG
UHTXLUH DSSURSULDWH IXHO WUHDWPHQW SULRU WR GHOLYHU\ WR
WKH LQMHFWRU )RU LQIRUPDWLRQ RQ IXHO WUHDWPHQW VHH
&,0$& %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 *XLGHOLQHV IRU +HDY\
)XHO 2LO +)2 (QJLQHV
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
7DEOH
$FFHSWDEOH ,62 50* DQG DQG &,0$& * 6SHFLILFDWLRQV IRU +HDY\ )XHO 2LO
)RU 8VH ,Q &DW 6HULHV(QJLQHV 7KDW $UH &RQILJXUHG 7R 8VH +HDY\ )XHO 2LO
&KDUDFWHULVWLF
$670 7HVW
,62 6SHFLILFDWLRQ
%XQNHUHG )XHO
,62 50* DQG
DQG &,0$& *
.LQHPDWLF 9LVFRVLW\
'
'HQVLW\
'
)ODVK SRLQW
'
3RXU SRLQW
'
& )
&DUERQ UHVLGXH
PD[LPXP
PJ SHU NJ PD[LPXP
$FLG 1XPEHU
'
$VK
'
:DWHU
'
6XOIHU
' RU '
9DQDGLXP
'
6RGLXP
'
PJNJ
PJNJ PD[LPXP
ILYH PLQLPXP
PJNJ PD[LPXP
&DOFLXP
'
3KRVSKRURXV
'
=LQF
'
'
$VSKDOWHQHV
'
'
PJNJ PD[LPXP
PJNJ PD[LPXP
PJNJ
PJNJ PD[LPXP
7KH WHPSHUDWXUH RI WKH IXHO DW WKH IXHO LQOHW WR WKH HQJLQH PXVW QRW H[FHHG & )
7KLV OLPLW LV 21/< IRU HQJLQHV WKDW KDYH D VXLWDEOH V\VWHP IRU WUHDWPHQW RI WKH IXHO
)RU DSSOLFDWLRQV ZLWK ORDGV WKDW DUH OHVV WKDQ SHUFHQW RI WKH UDWHG RXWSXW N: DQG IRU DSSOLFDWLRQV ZLWK ORDG F\FOLQJ WKH &&$, 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 626 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
,62 50.
.LQHPDWLF YLVFRVLW\
'
'HQVLW\
'
)ODVK SRLQW
'
3RXU SRLQW
'
& )
'
:DWHU
'
6XOIXU
'
RU
'
9DQDGLXP
'
'
PJ PD[LPXP SHU NJ
&DOFLXP
'
PJNJ PD[LPXP
3KRVSKRURXV
'
=LQF
'
&DUERQ UHVLGXH
$VK
7RWDO VHGLPHQW DIWHU VHWWOLQJ
PJNJ PD[LPXP
PJNJ PD[LPXP
%XQNHUHG IXHOV ZLWK KLJKHU YLVFRVLW\ WKDQ WKH DFFHSWDEOH IXHOV OLVWHG LQ 7DEOH XS WR 7KH ,QWHUQDWLRQDO &RXQFLO 2Q &RPEXVWLRQ (QJLQHV &,
0$& . RU ,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 626 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
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 & )
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
6WRULQJ RI WKH IXHO
7DEOH
([DPSOHV IRU &DOFXODWLQJ WKH 3HUFHQWDJH RI 6RGLXP 1D WR
9DQDGLXP 9
SSP 1D
SSP 9
SSP 1D
SSP 9
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
9DOYHV
3XPS
3UHVVXUH JDXJH
2QH WHPSHUDWXUH JDXJH EHIRUH WKH HQJLQH DQG RQH
WHPSHUDWXUH JDXJH DIWHU WKH HQJLQH
$Q DODUP IRU ORZ FRRODQW SUHVVXUH
+HDW H[FKDQJHU
127,&(
7KH YLVFRVLW\ RI WKH IXHO DW WKH HQJLQH PXVW EH EH
WZHHQ F6W DQG F6W 7KH WHPSHUDWXUH RI WKH IXHO
DW WKH HQJLQH PXVW QRW H[FHHG & )
6(%8
)XHO 6SHFLILFDWLRQV
+HDY\ )XHO 2LO
-DFNHW :DWHU
7HPSHUDWXUH
& )
& )
/OR\G
V 5HJLVWHU /DERUDWRU\
/OR\G
V 5HJLVWHU (0($
)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
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
ORRNDOLNH SURGXFWV
&RXQWHUIHLW RU ORRNDOLNH 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 ORRNDOLNH SURGXFWV KDYH D YHU\ KLJK
OLNHOLKRRG RI FDXVLQJ DQGRU DOORZLQJ HQJLQH DQGRU
PDFKLQH FRPSDUWPHQW GDPDJH
127,&(
&RPPHUFLDO SURGXFWV WKDW PDNH JHQHULF FODLPV RI
PHHWLQJ &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 $OORZ WKH HQJLQH WR FRRO ILUVW
127,&(
,I WKH HQJLQH LV WR EH VWRUHG LQ RU VKLSSHG WR DQ DUHD
ZLWK EHORZ IUHH]LQJ WHPSHUDWXUHV WKH FRROLQJ V\VWHP
PXVW EH HLWKHU SURWHFWHG WR WKH ORZHVW RXWVLGH WHPSHU
DWXUH RU GUDLQHG FRPSOHWHO\ LQ RUGHU WR SUHYHQW GDP
DJH FDXVHG E\ IUHH]LQJ FRRODQW
127,&(
1HYHU RSHUDWH DQ HQJLQH ZLWKRXW ZDWHU WHPSHUDWXUH
UHJXODWRUV LQ WKH FRROLQJ V\VWHP :DWHU WHPSHUDWXUH
UHJXODWRUV KHOS WR PDLQWDLQ WKH HQJLQH FRRODQW DW WKH
SURSHU RSHUDWLQJ WHPSHUDWXUH &RROLQJ V\VWHP SURE
OHPV FDQ GHYHORS ZLWKRXW ZDWHU WHPSHUDWXUH
UHJXODWRUV
,I \RX RSHUDWH WKH HQJLQH ZLWKRXW WKH UHJXODWRU VRPH
FRRODQW E\SDVVHV WKH UDGLDWRU 7KLV PD\ FDXVH
RYHUKHDWLQJ
6(%8
:DWHU
127,&(
1HYHU XVH ZDWHU DORQH DV D FRRODQW :DWHU DORQH LV
FRUURVLYH DW HQJLQH RSHUDWLQJ WHPSHUDWXUHV ,Q DGGL
WLRQ ZDWHU DORQH GRHV QRW SURYLGH DGHTXDWH SURWHF
WLRQ DJDLQVW ERLOLQJ RU IUHH]LQJ
7DEOH
6SHFLDO 5HTXLUHPHQWV
&DW HQJLQH PRGHO
:DWHU EDVHG (/, DQG 6&$ 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
$GGLWLYHV
(/,
&RQFHQWUDWH
:DWHU
*DOORQV
*DOORQV
*DOORQV
9ROXPHV FDQ DOVR EH LQ OLWHUV DV ORQJ DV DOO WKH YROXPH XQLWV DUH
FRQVLVWHQW
&DW GHDOHU
3URSHUW\
0D[LPXP /LPLW
$670 7HVW
&KORULGH &O
'
'
6XOIDWH 62
PJ/
JUDLQV86 JDO
'
'
7RWDO +DUGQHVV
PJ/
JUDLQV86 JDO
'
7RWDO 6ROLGV
PJ/
JUDLQV86 JDO
'
)HGHUDO
0HWKRG
%
$FLGLW\
S+ RI WR
'
*O\FRO
*O\FRO LQ WKH FRRODQW KHOSV WR SURYLGH SURWHFWLRQ
DJDLQVW WKH IROORZLQJ FRQGLWLRQV
6(%8
)UHH]LQJ
&RQFHQWUDWLRQ
)UHH]H
3URWHFWLRQ
%RLO 3URWHFWLRQ
3HUFHQW
& )
3HUFHQW
& )
3HUFHQW
& )
&RQFHQWUDWLRQ
)UHH]H 3URWHFWLRQ
3HUFHQW
& )
,OOXVWUDWLRQ
J
%RLO 3URWHFWLRQ
3URWHFWLRQ WR
&RQFHQWUDWLRQ
& )
JO\FRO
ZDWHU
& )
JO\FRO
ZDWHU
& )
JO\FRO
ZDWHU
& )
JO\FRO
ZDWHU
& )
JO\FRO
ZDWHU
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RRODQW 5HFRPPHQGDWLRQV
(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 $670 '
RU $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 $670 ' RU $670
' &DW '($& DQG &DW 6&$ LQ ZDWHU DOVR
UHIHUUHG WR DV 6&$:DWHU FRRODQW DUH FRQYHQWLRQDO
FRRODQWV
&RRODQW 5HFRPPHQGDWLRQV
*HQHUDO 0DLQWHQDQFH
60&6 &RGH
7KH ILQLVKHG FRRODQWV WKDW DUH UHFRPPHQGHG RU
DFFHSWDEOH IRU XVH LQ &DW GLHVHO HQJLQHV DUH JLYHQ LQ
7DEOH EHORZ
6(%8
3URGXFW
6HUYLFH KRXUV
5HTXLUHG 0DLQWHQDQFH
&DW (/&
&DW '($&
6&$ DW PDLQWHQDQFH
LQWHUYDOV
6&$ DW PDLQWHQDQFH
LQWHUYDOV
6&$ DW PDLQWHQDQFH
LQWHUYDOV
&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
3HU PDQXIDFWXUHU
UHFRPPHQGDWLRQV
5HFRPPHQGDWLRQV
3UHIHUUHG
$FFHSWDEOH
FRQWLQXHG
6(%8
6SHFLDO 5HTXLUHPHQWV
:DWHU(/, LV UHFRPPHQGHG :DWHU6&$ LV DFFHSWDEOH *O\FROEDVHG
FRRODQWV DUH 127 DOORZHG
)RU IUHH]LQJ SURWHFWLRQ RI & ) WHPSHUDWXUHV DQG ORZHU FRQVXOW \RXU &DW GHDOHU IRU JXLGDQFH
(/,
&RQFHQWUDWH
:DWHU
*DOORQV
*DOORQV
*DOORQV
9ROXPHV FDQ DOVR EH LQ OLWHUV DV ORQJ DV DOO WKH YROXPH XQLWV DUH
FRQVLVWHQW
6(%8
127,&(
'R QRW XVH D FRPPHUFLDO FRRODQWDQWLIUHH]H WKDW RQO\
PHHWV WKH $670 ' RU HTXLYDOHQW VSHFLILFDWLRQ
7KLV W\SH RI FRRODQWDQWLIUHH]H LV PDGH IRU OLJKW GXW\
DXWRPRWLYH DSSOLFDWLRQV
8VH RQO\ WKH FRRODQWDQWLIUHH]H WKDW LV UHFRPPHQGHG
&DWHUSLOODU UHFRPPHQGV D YROXPH SHUFHQW JO\FRO
DQG ZDWHU RI SURSHU TXDOLW\ 7KLV PL[WXUH ZLOO SURYLGH
RSWLPXP KHDY\GXW\ SHUIRUPDQFH DV D FRRODQW
DQWLIUHH]H 6RPH PDULQH HQJLQHV DUH DQ H[FHSWLRQ DV
LQGLFDWHG LQ 7DEOH
0DLQWDLQ D FRQFHQWUDWLRQ OHYHO RI QLWULWHV LQ WKH FRROLQJ
V\VWHP WKDW LV EHWZHHQ SSP JUDLQV86 JDO
DQG SSP JUDLQV86 JDO 626 FRRODQW
DQDO\VLV LV WKH SUHIHUUHG PHWKRG WR FKHFN 6&$
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
&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 & ) 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 & ) IRU DUFWLF FRQGLWLRQV
&RQWDLQHUV RI VHYHUDO VL]HV DUH DYDLODEOH 5HIHU WR
WKLV 6SHFLDO 3XEOLFDWLRQ &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 $670 ' DQG
$670 ' IRU KHDY\GXW\ ORZ VLOLFDWH DQWLIUHH]H
FRRODQWV &DW (/& DOVR PHHWV WKH SHUIRUPDQFH
UHTXLUHPHQWV RI $670 ' IRU DXWRPRWLYH
DSSOLFDWLRQV
6(%8
$GGLWLRQDO 5HTXLUHPHQWV
0DLQWHQDQFH
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH &RRODQW &RROLQJ 6\VWHP 0DLQWHQDQFH
0XOWLSOLFDWLRQ
)DFWRU
/ 86 JDO
127,&(
:KHQ XVLQJ &DW
(/& GR QRW XVH FRQYHQWLRQDO
6&$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
6(%8
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
([WHQGHG /LIH ,QKLELWRU (/,
6(%8
3DUW 1XPEHU
&RQWDLQHU 6L]H
/ 86 JDO
/ 86 JDO
/ 86 JDO
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH
&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 626
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
,QLWLDO )LOO
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]
WR / WR 86 JDO
/ IO R]
/ IO R]
WR / WR 86 JDO
/ IO R]
/ IO R]
/ IO R]
/ IO R]
/ IO R]
/ IO R]
9
1
1
4XDQWLW\ RI
(OHPHQWV
0XOWLSOLFDWLRQ
)DFWRU
$PRXQW RI &DW
6&$ WKDW LV 5H
TXLUHG ;
/
86 JDO
/
86 JDO
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RQYHQWLRQDO &RRODQW$QWLIUHH]H &RROLQJ 6\VWHP 0DLQWHQDQFH
0XOWLSOLFDWLRQ
)DFWRU
$PRXQW RI &DW
6&$ WKDW LV 5H
TXLUHG ;
/
86 JDO
/
86 JDO
6(%8
6L]H RI &RQWDLQHU
&
&
/ 86 JDO
&
/ 86 JDO
&
/ 86 JDO
&
/ 86 JDO
9ROXPH
$YDLODELOLW\
9
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
&RPPHUFLDO +HDY\'XW\ &RRODQW$QWLIUHH]H DQG 6&$ 6XSSOHPHQWDO &RRODQW $GGLWLYH
)ROORZ WKH PDLQWHQDQFH LQIRUPDWLRQ SURYLGHG LQ WKH
&RRODQW DQG *HQHUDO 0DLQWHQDQFH
5HFRPPHQGDWLRQV VHFWLRQ LQ WKLV 6SHFLDO
3XEOLFDWLRQ
&RPPHUFLDO +HDY\'XW\
&RRODQW$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
6(%8
$GGLWLRQDO 5HTXLUHPHQWV
0DLQWHQDQFH
:DWHU6&$ 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
&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
6(%8
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
626 6HUYLFHV &RRODQW $QDO\VLV
5HFRPPHQGHG ,QWHUYDO
7\SH RI
/HYHO
/HYHO
)LQLVKHG
&RRODQW
&DW '($&
&DW 6&$
(YHU\ KRXUV
&RQYHQWLRQDO +HDY\
'XW\ &RRODQWV
&DW (/&
&DW (/,
&RPPHUFLDO (&
&RRODQWV
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
<HDUO\
2SWLRQDO
<HDUO\
&RROLQJ 6\VWHP 6SHFLILFDWLRQV
626 6HUYLFHV &RRODQW $QDO\VLV
7KH 626 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 626 FRRODQW DQDO\VLV
FRQVXOW \RXU &DW GHDOHU
6(%8
6(%8
([KDXVW $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV
'LHVHO ([KDXVW )OXLG '()
([KDXVW $IWHUWUHDWPHQW
)OXLGV 6SHFLILFDWLRQV
*HQHUDO ,QIRUPDWLRQ
&RQWDLQHU 6L]H
/ WRWH
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
,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 & )
'() FRQFHQWUDWLRQV WKDW DUH KLJKHU RU ORZHU WKDQ
SHUFHQW KDYH KLJKHU IUHH]H SRLQWV '() GRVLQJ
V\VWHPV DQG ,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
7DEOH
127,&(
&DW GRHV QRW ZDUUDQW WKH TXDOLW\ RU SHUIRUPDQFH RI
QRQ&DW IOXLGV DQG JUHDVHV
5HIUDFWRPHWHU
3DUW 1XPEHUV
'() *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 $IWHUWUHDWPHQW )OXLGV 6SHFLILFDWLRQV
'LHVHO ([KDXVW )OXLG '()
3RO\HWK\OHQH
&OHDQOLQHVV
3RO\SURS\OHQH
3RO\LVREXW\OHQH
7HIORQ 3)$
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
6WDELOLW\
+DQGOLQJ
7DEOH
6WRUDJH 7HPSHUDWXUH
%HORZ & )
PRQWKV
& ) WR & )
PRQWKV
& ) WR & )
PRQWKV
$ERYH & )
6(%8
8QLW
SHUFHQW
8UHD FRQWHQW
$ONDOLQLW\ DV 1+
3HUFHQW
'HQVLW\ DW & )
J/
%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[
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
6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
7DEOH
P DQG XS
P DQG XS
P DQG XS
,62
,62
)LOO RLOV
'LVSHQVHG IXHOV
,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
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 ,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
6(%8
&RQWDPLQDWLRQ &RQWURO
&RQWDPLQDWLRQ &RQWURO
6(%8
5HIHUHQFH ,QIRUPDWLRQ
6HFWLRQ
)XHO
5HIHUHQFH 0DWHULDOV
L
5HIHUHQFH 0DWHULDO
KWWSZZZWUXFNDQGHQJLQHPDQXIDFWXUHUVRUJ
DUWLFOHV
6(%8
5HIHUHQFH 0DWHULDOV
5HIHUHQFH 0DWHULDO
)LOWHUV
0LVFHOODQHRXV
KWWSVFRPPHUFHFDWFRPHQFDWFRUSILOWHUV
6SHFLDO 3XEOLFDWLRQ 3(:- )LOWHUV DQG
)OXLGV $SSOLFDWLRQ *XLGH
6SHFLDO 3XEOLFDWLRQ 3(+3 )XHO
&RQWDPLQDWLRQ &RQWURO
626 6HUYLFHV
6(%8
5HIHUHQFH 0DWHULDOV
$GGLWLRQDO 5HIHUHQFH 0DWHULDO
6SHFLDO 3XEOLFDWLRQ 6(%' &DWHUSLOODU
3HUIRUPDQFH +DQGERRN
$670 ' 6WDQGDUG *XLGH IRU 0LFURELDO
&RQWDPLQDWLRQ LQ )XHOV DQG )XHO 6\VWHPV
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
'
'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
0DLQWHQDQFH 6HFWLRQ
*
*HQHUDO &RRODQW ,QIRUPDWLRQ
$GGLWLYHV
&RRODQW 7HUPLQRORJ\
*O\FRO
:DWHU
*HQHUDO )XHO ,QIRUPDWLRQ
*HQHUDO 5HFRPPHQGDWLRQV DQG *XLGHOLQHV
*RYHUQRU 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
5
5HUHILQHG %DVHVWRFN 2LOV
5HIHUHQFH ,QIRUPDWLRQ 6HFWLRQ
5HIHUHQFH 0DWHULDO
$GGLWLRQDO 5HIHUHQFH 0DWHULDO
)LOWHUV
)XHO
/XEULFDQWV &RRODQWV DQG *UHDVHV
0LVFHOODQHRXV
626 6HUYLFHV
5HIHUHQFH 0DWHULDOV
6
626 6HUYLFHV &RRODQW $QDO\VLV
1HZ 6\VWHPV 5HILOOHG 6\VWHPV DQG
&RQYHUWHG 6\VWHPV
5HFRPPHQGHG 6DPSOLQJ ,QWHUYDO IRU 626
6HUYLFHV &RRODQW $QDO\VLV
626 6HUYLFHV &RRODQW $QDO\VLV /HYHO
626 6HUYLFHV &RRODQW $QDO\VLV /HYHO
626 6HUYLFHV 2LO $QDO\VLV
6(%8
,QGH[ 6HFWLRQ
7
7DEOH RI &RQWHQWV
:
:DWHU6&$ 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 ,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 &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