$73

0&73&

-81*/(23(5$7,216

6(37(0%(5

',675,%87,215(675,&7,21 $SSURYHGIRUSXEOLFUHOHDVHGLVWULEXWLRQLVXQOLPLWHG

7KLVSXEOLFDWLRQVXSHUVHGHV)0GDWHG$XJXVWDQG0&73&GDWHG$XJXVW

+($'48$57(56'(3$570(172)7+($50<
+($'48$57(56860$5,1(&2536

PCN: 147 000044 00

 7KLVSXEOLFDWLRQLVDYDLODEOHDWWKH$UP\3XEOLVKLQJ'LUHFWRUDWHVLWH
KWWSVDUP\SXEVDUP\PLOWKH&HQWUDO$UP\5HJLVWU\VLWH
KWWSVDWLDPWUDLQDUP\PLOFDWDORJGDVKERDUG
DQG0DULQH&RUSVVLWH
KWWSVKRPHSRUWXVPFPLO6,7(60&'2&75,1(6,7(3$*(6+2
0($63;
 $73
0&73&
$UP\7HFKQLTXHV3XEOLFDWLRQ +HDGTXDUWHUV
1R 'HSDUWPHQWRIWKH$UP\
:DVKLQJWRQ'&.6HSWHPEHU
0DULQH&RUSV7DFWLFDO3XEOLFDWLRQ
+HDGTXDUWHUV
1R& 0DULQH &RUSV7DFWLFVDQG2SHUDWLRQV*URXS
0DULQH $LU*URXQG7DVN)RUFH7UDLQLQJ&RPPDQG
0DULQH&RUSV$LU*URXQG&RPEDW&HQWHU
7ZHQW\ QLQH3DOPV&$,  6HSWHPEHU

-81*/(23(5$7,216
&RQWHQWV
3DJH
35()$&(Y
,1752'8&7,21YLL
&KDSWHU 7+(-81*/((19,5210(17
-XQJOH5HJLRQV
:HDWKHU
7HUUDLQ
:LOGOLIH
(QYLURQPHQWDO(IIHFWVRQ3HUVRQQHO
(QYLURQPHQWDO(IIHFWVRQ(TXLSPHQW
&KDSWHU )281'$7,216)25-81*/(23(5$7,216
8QGHUVWDQGLQJ-XQJOH2SHUDWLRQV
2SHUDWLRQDO)UDPHZRUN
0XOWLSOH'RPDLQ2SHUDWLRQVLQDQ([WHQGHG-XQJOH%DWWOHILHOG
-RLQW2SHUDWLRQVLQD-XQJOH(QYLURQPHQW
)XQGDPHQWDOVRI-XQJOH2SHUDWLRQV
&KDSWHU &20%$732:(5,1-81*/(5(*,216
&RPEDW3RZHU
/HDGHUVKLS
,QIRUPDWLRQ
,QIRUPDWLRQ:DUILJKWLQJ)XQFWLRQ
&RPPDQGDQG&RQWURO:DUILJKWLQJ)XQFWLRQ
0RYHPHQWDQG0DQHXYHU0DQHXYHU:DUILJKWLQJ)XQFWLRQ
,QWHOOLJHQFH:DUILJKWLQJ)XQFWLRQ
)LUHV:DUILJKWLQJ)XQFWLRQ
6XVWDLQPHQW/RJLVWLFV:DUIJKWLQJ)XQFWLRQ
3URWHFWLRQ)RUFH3URWHFWLRQ:DUILJKWLQJ)XQFWLRQ
&KDSWHU -81*/(2))(16,9(23(5$7,216
2IIHQVLYH2SHUDWLRQV
&KDUDFWHULVWLFVRIWKH2IIHQVH

',675,%87,215(675,&7,21$SSURYHGIRUSXEOLFUHOHDVHGLVWULEXWLRQLVXQOLPLWHG
7KLVSXEOLFDWLRQVXSHUVHGHV)0GDWHG$XJXVWDQG0&73&GDWHG$XJXVW

$730&73& L
&RQWHQWV

7\SHVRI2IIHQVLYH2SHUDWLRQV
)RUPVRI0DQHXYHU
:DUILJKWLQJ)XQFWLRQ&RQVLGHUDWLRQV
&RQVROLGDWH*DLQV
&KDSWHU -81*/('()(16,9(23(5$7,216
'HIHQVLYH2SHUDWLRQV
'HIHQVLYH&KDUDFWHULVWLFV
7\SHVRI'HIHQVLYH2SHUDWLRQV
'HIHQGLQJ(QFLUFOHG
)RUPVRIWKH'HIHQVH'HIHQVLYH0HWKRGV
7UDQVLWLRQ
:DUILJKWLQJ)XQFWLRQ&RQVLGHUDWLRQV
&KDSWHU -81*/(67$%,/,7<23(5$7,216
6WDELOLW\2SHUDWLRQV
6WDELOLW\2SHUDWLRQV7DVNV
7UDQVLWLRQ
:DUILJKWLQJ)XQFWLRQ&RQVLGHUDWLRQV
&KDSWHU 75$,1,1*)25-81*/(23(5$7,216
7UDLQLQJ$GDSWHGIRU-XQJOH2SHUDWLRQV
&DPRXIODJHDQG&RQFHDOPHQW
(TXLSPHQW2SHUDWRU7UDLQLQJ
6XUYLYDO(YDVLRQDQG(VFDSH
:DWHU6XUYLYDO
/DQG1DYLJDWLRQ
(TXLSPHQW7UDLQLQJ
&%517UDLQLQJ
-XQJOH)LHOG&UDIW
0HGLFDO7UDLQLQJ&RQVLGHUDWLRQV
3K\VLFDO&RQGLWLRQLQJDQG$FFOLPDWL]DWLRQ
:HDSRQV7UDLQLQJ
0DUFK'LVFLSOLQH
$GMXVWPHQWDQG&RQGXFWRI)LUH
$LU'HIHQVH
)UDWULFLGH&RQVLGHUDWLRQV
$SSHQGL[$ 1$9,*$7,21$1'75$&.,1*,1-81*/(5(*,216$
$SSHQGL[% 1(*27,$7,1*-81*/(2%67$&/(6%
$SSHQGL[& ,1',9,'8$/&20%$7/2$',1-81*/(23(5$7,216&
$SSHQGL[' 7(&+1,48(6)25)5$75,&,'(5('8&7,21,17+(-81*/('
$SSHQGL[( 0$5,1(&2536'2&75,1$/6&+(0$&219(56,216(
6285&(127(66RXUFH1RWHV
*/266$5<*ORVVDU\
5()(5(1&(65HIHUHQFHV
,1'(;,QGH[

)LJXUHV
)LJXUH-XQJOHDQGVDYDQQDUHJLRQVRIWKHZRUOG
)LJXUH3ULPDU\MXQJOH

LL $730&73& 6HSWHPEHU

 &RQWHQWV

)LJXUH6HFRQGDU\MXQJOH
)LJXUH6DYDQQD
)LJXUH&\EHUVSDFHLQDPXOWLSOHGRPDLQEDWWOHILHOG
)LJXUH0DULQHDLUJURXQGWDVNIRUFH
)LJXUH2YHUFRPLQJMXQJOHFRPPXQLFDWLRQVFKDOOHQJHV
)LJXUH-XQJOHPRYHPHQWWHFKQLTXH
)LJXUH&RPSXWLQJWKHFRUUHFWLRQLQGHYLDWLRQ
)LJXUH&RPSXWLQJWKHFRUUHFWLRQLQUDQJH
)LJXUH<VKDSHGSHULPHWHUGHIHQVH
)LJXUH5HYHUVHVORSHGHIHQVH
)LJXUH6DPSOHMXQJOH6:($7062OLQHVRIHIIRUW
)LJXUH3RQFKRVKHOWHUV
)LJXUH$3DFHWDEOH$
)LJXUH$5HVHFWLRQE\LQGLUHFWILUH$
)LJXUH$2IIVHWPHWKRG$
)LJXUH$$WWDFNSRLQWPHWKRG$
)LJXUH%&RPPRQNQRWV%
)LJXUH%3RQFKREUXVKUDIW%
)LJXUH%$XVWUDOLDQSRQFKRUDIW%
)LJXUH%'HWHUPLQDWLRQRIULYHUZLGWK%
)LJXUH%6ZLPPHUSXOOLQJURSHDFURVV%

7DEOHV
7DEOH:RUNUHVWDQGZDWHUFRQVXPSWLRQJXLGH
7DEOH-RLQW$UP\DQG0DULQH&RUSVVWDELOLW\WDVNV
7DEOH$'D\OLJKWPRYHPHQWUDWHV$
7DEOH$7UDFNLQJSRLQWV$
7DEOH(0DULQH&RUSVGRFWULQDOPDQXDOQXPEHUFRQYHUVLRQ(

6HSWHPEHU $730&73& LLL



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 3UHIDFH
$730&73&Jungle OperationsLVDGXDOGHVLJQDWHG$UP\DQG0DULQH&RUSVPDQXDOWKDW
SURYLGHV6ROGLHUV0DULQHV ZLWKFRQFHSWVDQGWHFKQLTXHVDVVRFLDWHG ZLWKFRQGXFWLQJRSHUDWLRQVLQDMXQJOH
HQYLURQPHQW7KLVSXEOLFDWLRQVXSHUVHGHV)0DQG0&73&GDWHG$XJXVW
7KHSULQFLSDODXGLHQFHIRU$730&73&LQFOXGHV$UP\0DULQH&RUSVFRPPDQGHUVOHDGHUV
VWDIIV DQG 6ROGLHUV0DULQHV 7UDLQHUV DQG HGXFDWRUV WKURXJKRXW WKH $UP\0DULQH &RUSV ZLOO DOVR XVH WKLV
PDQXDO
&RPPDQGHUVVWDIIVDQG6ROGLHUV0DULQHVHQVXUHWKHLUGHFLVLRQVDQGDFWLRQVFRPSO\ZLWKDSSOLFDEOH86
LQWHUQDWLRQDO DQG LQ VRPH FDVHV KRVWQDWLRQ ODZV DQG UHJXODWLRQV &RPPDQGHUV DWDOOOHYHOV HQVXUH WKHLU
6ROGLHUV0DULQHVRSHUDWHLQDFFRUGDQFHZLWKWKHODZRIZDUDQGWKHUXOHVRIHQJDJHPHQW6HH)00&73
&IRUPRUHLQIRUPDWLRQRQWKHODZRIODQGZDUIDUH
$730&73& GHQRWHV0DULQH &RUSVVSHFLILF WH[W ZLWKXQGHUOLQLQJ
$730&73&XVHVMRLQWWHUPVZKHUHDSSOLFDEOH6HOHFWHGMRLQW$UP\DQG0DULQH&RUSVWHUPV
DQGGHILQLWLRQVDSSHDULQERWKWKHJORVVDU\DQGWKHWH[W,QGRFWULQDOSXEOLFDWLRQVWKHQRUPDOFRQYHQWLRQIRU
LGHQWLI\LQJWHUPVXVHVLWDOLFV6LQFHWKLVLVDGXDOGHVLJQDWHG$UP\DQG0DULQH&RUSVPDQXDOWKHIROORZLQJ
SURWRFROLVXVHGWRGLVWLQJXLVKSURSRQHQF\DXWKRULW\RILQIRUPDWLRQDQGWHUPV
z 7HUPV LQ LWDOLFV DQG SKUDVLQJ ERWK XQGHUOLQHG²0DULQH &RUSV VSHFLILF WHUPV SKUDVLQJ RU
FRQFHSWV
z 7HUPVLQLWDOLFVDQGGHILQLWLRQVLQSODLQWH[W²MRLQWDQG$UP\WHUPVZLWKSURSRQHQWSXEOLFDWLRQLQ
SDUHQWKHVHV
$730&73&LPSOHPHQWVVWDQGDUGL]DWLRQDJUHHPHQWNQRZQDV 67$1$*$OOLHG7DFWLFDO
3XEOLFDWLRQ%
$730&73&XVHVWKHFXUUHQW860&GRFWULQDOQXPEHULQJVFKHPDIRUUHIHUHQFH$SSHQGL['
FRQWDLQVDFURVVUHIHUHQFHWDEOHEHWZHHQWKHFXUUHQWDQGKLVWRULFDO860&GRFWULQHQXPEHUVDVPDQ\$UP\
PXOWLVHUYLFHSXEOLFDWLRQVGRQRWFXUUHQWO\UHIOHFWWKHFXUUHQW860&GRFWULQHQXPEHULQJVFKHPD
$730&73&DSSOLHVWR$FWLYH$UP\WKH$UP\1DWLRQDO*XDUG$UP\1DWLRQDO*XDUGRIWKH
8QLWHG6WDWHV 8QLWHG6WDWHV $UP\ 5HVHUYHDQG 0DULQH &RUSVDQG8QLWHG6WDWHV 0DULQH&RUSV 5HVHUYH
XQOHVVRWKHUZLVHVWDWHG
7KH SURSRQHQW RI $73 0&73 & LV WKH 8QLWHG 6WDWHV $UP\ &RPELQHG $UPV &HQWHU 7KH
SUHSDULQJDJHQF\LVWKH&RPELQHG$UPV'RFWULQH'LUHFWRUDWH8QLWHG6WDWHV$UP\&RPELQHG$UPV&HQWHU
6HQGFRPPHQWVDQGUHFRPPHQGDWLRQVRQD'$)RUPRecommended Changes to Publications and
Blank FormsWR&RPPDQGHU86$UP\&RPELQHG$UPV&HQWHU$771$7=/0&'$73
0F3KHUVRQ$YHQXH)RUW/HDYHQZRUWK.6E\HPDLOWRXVDUP\OHDYHQZRUWKPFFRHPE[FDGG
RUJPDLOER[#PDLOPLORUVXEPLWDQHOHFWURQLF'$)RUP
860DULQH&RUSVUHDGHUVRIWKLVSXEOLFDWLRQDUHHQFRXUDJHGWRVXEPLWVXJJHVWLRQVDQGFKDQJHVWR'RFWULQH
&RQWURO%UDQFKYLDHPDLOGRFWULQH#XVPFPLO

$FNQRZOHGJHPHQWV
3KRWRJUDSKVLQWKLVDUHFRXUWHV\RIWKH'HIHQVH9LVXDO,QIRUPDWLRQ'LVWULEXWLRQ6HUYLFH

6HSWHPEHU $730&73& Y


7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 ,QWURGXFWLRQ
7RXQGHUVWDQG$730&73&$UP\SURIHVVLRQDOVPXVWXQGHUVWDQGWKHGRFWULQDOIXQGDPHQWDOV
FRQWDLQHGLQ$'3DQG$'3$UP\SURIHVVLRQDOVVKRXOGXQGHUVWDQGWKHRSHUDWLRQVDQGSURFHGXUHV
FRQWDLQHGLQ)0$UP\OHDGHUVDQG6ROGLHUVVKRXOGXQGHUVWDQGWKHRSHUDWLRQVSURFHVVSODQSUHSDUH
H[HFXWHDQGDVVHVVDQGKRZWKDWSURFHVVUHODWHVWRWKH$UP\¶VPLOLWDU\GHFLVLRQPDNLQJSURFHVVDQGWURRS
OHDGLQJ SURFHGXUHV DV GHVFULEHG LQ $'3  0DULQHV &RUSV OHDGHUV DQG 0DULQHV PXVW XQGHUVWDQG WKH
GRFWULQDO IXQGDPHQWDOV LQ 0&'3  DQG 0&'3  DV ZHOO DV WKH 0DULQH &RUSV SODQQLQJ SURFHVV LQ
0&:30&:3.%RWKOHDGHUVDQG6ROGLHUV0DULQHVVKRXOGXQGHUVWDQGWKHLQWHOOLJHQFHSUHSDUDWLRQ
RIWKHEDWWOHILHOGEDWWOHVSDFHSURFHVVIRXQGLQ$73DQG0&53%0&53$
7KHWHFKQLTXHVFRQWDLQHGLQWKLVSXEOLFDWLRQDUHEDVHGRQWKH$UP\¶VDQG0DULQH&RUSV¶KLVWRULFDOOHVVRQV
OHDUQHG LQ SUHYLRXV RSHUDWLRQV FRQGXFWHG LQ MXQJOH HQYLURQPHQWV $73 0&73 & UHSODFHV
SUHYLRXVHGLWLRQVRI)0  Jungle OperationsDQG0&73& Jungle Operations7KLVSXEOLFDWLRQ
XSGDWHVDQGUHRUJDQL]HVWKHLQIRUPDWLRQFRQWDLQHGLQWKHYHUVLRQVRI)0DQG0&73&DV
ZHOODVUHIOHFWVFKDQJHVLQ$UP\DQGMarine CorpsFDSVWRQHGRFWULQH
6HYHUDO FKDQJHV RFFXUUHG LQ WKH RUJDQL]DWLRQ DQG FRQWHQW RI WKLV SXEOLFDWLRQ ZKHQ FRPSDUHG ZLWK LWV
SUHGHFHVVRUWKHHGLWLRQRI)0 Jungle OperationsDQG0&73& Jungle Operations7KH
VHYHQ FKDSWHUV RI WKLV FXUUHQW $73 0&73 & GHILQH MXQJOH HQYLURQPHQWV GHVFULEH WKH
IRXQGDWLRQVRIMXQJOHRSHUDWLRQVH[DPLQHFRPEDWSRZHULQMXQJOHUHJLRQVSUHVHQWPHWKRGVDQGWHFKQLTXHV
IRUMXQJOHRIIHQVLYHDQGGHIHQVLYHRSHUDWLRQVRXWOLQHVWDELOLW\RSHUDWLRQVLQWKHMXQJOHDQGRIIHUWUDLQLQJIRU
MXQJOHRSHUDWLRQV
z &KDSWHUGHILQHVWKHYDULRXVW\SHVRIMXQJOHUHJLRQV&KDSWHUDOVRGHVFULEHVWKHHIIHFWVRIWKH
MXQJOHHQYLURQPHQWRQSHUVRQQHODQGHTXLSPHQW
z &KDSWHUSURYLGHVWKHIRXQGDWLRQVIRUMXQJOHRSHUDWLRQV
z &KDSWHUH[DPLQHVKRZWKHMXQJOHDIIHFWVFRPEDWSRZHU
z &KDSWHU  GHVFULEHVMXQJOH RIIHQVLYH RSHUDWLRQV DQG WKH HQYLURQPHQWDO LPSDFWV E\ ZDUILJKWLQJ
IXQFWLRQ
z &KDSWHUH[DPLQHVMXQJOHGHIHQVLYHRSHUDWLRQVDQGWKHHQYLURQPHQWDOLPSDFWVRIWKHMXQJOHE\
ZDUILJKWLQJIXQFWLRQ
z &KDSWHU  UHYLHZV MXQJOH VWDELOLW\ RSHUDWLRQV DQG WKH HQYLURQPHQWDO LPSDFWV RI WKH MXQJOH E\
ZDUILJKWLQJIXQFWLRQ
z &KDSWHURIIHUVWUDLQLQJFRQVLGHUDWLRQVIRUMXQJOHRSHUDWLRQV

7KHWHFKQLTXHVDQGFRQVLGHUDWLRQVGLVFXVVHGLQWKLVSXEOLFDWLRQRQO\LOOXVWUDWHDZD\WRFRQGXFWRSHUDWLRQV
LQWKHMXQJOH&ROOHFWLYHO\WKH\SURYLGHDVHWRIWRROVWKDWOHDGHUVDQG6ROGLHUV0DULQHVHPSOR\DFFRUGLQJWR
WKHXQLTXHWDFWLFDORURSHUDWLRQDOVLWXDWLRQWKDWWKH\IDFHDWDQ\JLYHQWLPHDQGORFDWLRQ

6HSWHPEHU $730&73& YLL



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 &KDSWHU
7KH-XQJOH(QYLURQPHQW

7KLV FKDSWHU H[DPLQHV MXQJOH UHJLRQV IRXQG WKURXJKRXW WKH ZRUOG DQG WKHLU
HQYLURQPHQWDOLPSDFWRQSHUVRQQHODQGHTXLSPHQW-XQJOHVDUHKDUVKHQYLURQPHQWV
FKDUDFWHUL]HG E\ LQWHQVH KHDW KHDY\ SUHFLSLWDWLRQ DQG WKLFN YHJHWDWLRQ WKDW FDQ
DGYHUVHO\ LPSDFW RSHUDWLRQV IRU XQSUHSDUHG IRUFHV 5HVWULFWLYH WHUUDLQ FDQ OLPLW
PRELOLW\ DQG REVHUYDWLRQZKLOH H[FHVVLYH KHDW DQG KXPLGLW\ FDQIDWLJXH WURRSV DQG
GHJUDGH HTXLSPHQW +RZHYHU WKURXJK SUHSDUDWLRQ DFFOLPDWL]DWLRQ DQG SUHYHQWLYH
PHDVXUHV6ROGLHUV0DULQHVFDQRYHUFRPHWKHVHFKDOOHQJHVDQGSUHYDLOLQWKHGHQVH
IRUHVWVVZDPSVDQGJUDVVODQGVRIWKHZRUOG¶VMXQJOHV

-81*/(5(*,216
 -XQJOHV DUH PDVVHV RI WURSLFDO YHJHWDWLRQ WKDW DUH RIWHQ WDQJOHG RYHUJURZQ DQG LPSHQHWUDEOH
6XFFHVVIXO MXQJOH RSHUDWLRQV UHTXLUH PRGLILFDWLRQV WR HTXLSPHQW DQG WDFWLFV DV WKH HQYLURQPHQW FDQ
SURIRXQGO\DIIHFWPLOLWDU\RSHUDWLRQV3ULPDU\VHFRQGDU\DQGVDYDQQDDUHWKHWKUHHPDLQFODVVLILFDWLRQVRI
MXQJOHV 3ULPDU\ DQG VHFRQGDU\ MXQJOHV FDQ EH IXUWKHU FODVVLILHG DV WURSLFDO RU GHFLGXRXV EDVHG XSRQ WKH
SUHGRPLQDWHWUHHV&RPPRQODQGIHDWXUHVLQWKHMXQJOHDUHVZDPSVVDYDQQDVDQGFXOWLYDWHGDUHDV7KHODUJH
DPRXQWVRIDQQXDOSUHFLSLWDWLRQVXSSRUWLQFUHGLEOHSODQWDQGZLOGOLIHGHQVLW\DQGGLYHUVLW\DVZHOODVPDNH
MXQJOHVWKHPRVWHFRORJLFDOO\ULFKDQGYLEUDQWHQYLURQPHQWVRQWKHSODQHW7KH\RFFXUPRVWFRPPRQO\LQWKH
WURSLFDODUHDVRIWKHZRUOGPDLQO\6RXWKHDVW$VLD$IULFDDQG/DWLQ$PHULFD6HHILJXUHIRUORFDWLRQV
RIWKHPDMRUMXQJOHV

)LJXUH-XQJOHDQGVDYDQQDUHJLRQVRIWKHZRUOG

6HSWHPEHU $730&73& 

&KDSWHU

 -XQJOH FOLPDWHV YDU\ ZLWK ORFDWLRQ &ORVH WR WKH HTXDWRU DOO VHDVRQV DUH QHDUO\ DOLNH ZLWK UDLQV
WKURXJKRXWWKH\HDUIDUWKHUIURPWKHHTXDWRUHVSHFLDOO\LQ,QGLDDQG6RXWKZHVW$VLDMXQJOHVKDYHGLVWLQFW
ZHWPRQVRRQDQGGU\VHDVRQV%RWK]RQHVKDYHKLJKWHPSHUDWXUHVDYHUDJLQJWRGHJUHHV)DKUHQKHLW
>WRGHJUHHV&HOVLXV@KHDY\UDLQIDOODVPXFKDVLQFKHV>FHQWLPHWHUV@DQQXDOO\DQGKLJK
KXPLGLW\SHUFHQWWKURXJKRXWWKH\HDU

-81*/(7<3(6
 -XQJOHV JHQHUDOO\ FRQVLVW RI GHQVH IRUHVWV JUDVVODQGV FXOWLYDWHG DUHDV DQG VZDPSV KRZHYHU WKH
GHJUHHWRZKLFKWKHVHIHDWXUHVDUH SUHVHQWLVXVHGWRFODVVLI\WKHMXQJOHE\W\SH-XQJOHVDUHFODVVLILHGDV
HLWKHUSULPDU\MXQJOHVVHFRQGDU\MXQJOHVRUVDYDQQDEDVHGRQWKHWHUUDLQDQGYHJHWDWLRQ

3ULPDU\-XQJOHV
 'HSHQGLQJRQWKHW\SHRIWUHHVJURZLQJLQWKHIRUHVWVSULPDU\MXQJOHVDUHFODVVLILHGHLWKHUDVWURSLFDO
UDLQIRUHVWVRUDVGHFLGXRXVIRUHVWV8QOLNHVHFRQGDU\MXQJOHVRUVDYDQQDVSULPDU\MXQJOHVFRQVLVWODUJHO\RI
ROGJURZWKWUHHVXQGLVWXUEHGE\ORJJLQJIDUPLQJRURWKHUKXPDQDFWLYLWLHV3ULPDU\MXQJOHVKDYHWDOOWUHHV
WKDWIRUPDGHQVHFDQRS\$VVXFKOLWWOHOLJKWSHQHWUDWHVWRWKHMXQJOHIORRUDQGXQGHUJURZWKPD\EHUHODWLYHO\
WKLQ 6HFRQGDU\ MXQJOHV H[LVW LQ DUHDV WKDW KDYH EHHQ SUHYLRXVO\ FOHDUHG IRU IDUPLQJ RU ORJJLQJ DQG DUH
FKDUDFWHUL]HGE\\RXQJHUVKRUWHUWUHHVDQGWKLFNHUXQGHUJURZWK6DYDQQDVDUHQDWXUDOJUDVVODQGVDQGWKHIHZ
WUHHVSUHVHQWDUHRIWHQJURXSHGWRJHWKHULQVPDOOJURYHVRUWKLFNHWV)LJXUH LOOXVWUDWHVDSULPDU\MXQJOH

)LJXUH3ULPDU\MXQJOH

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

Tropical Rain Forests

 7URSLFDOUDLQIRUHVWVFRQVLVWPRVWO\RIODUJHWUHHVZKRVHEUDQFKHVVSUHDGDQGORFNWRJHWKHUWRIRUP
FDQRSLHV7KHVHFDQRSLHVZKLFKFDQH[LVWDWWZRRUWKUHHGLIIHUHQWOHYHOVPD\IRUPDVORZDV IHHW
PHWHUV IURP WKH JURXQG 7KH FDQRSLHV SUHYHQW VXQOLJKW IURP UHDFKLQJ WKH JURXQG FDXVLQJ D ODFN RI
XQGHUJURZWKRQWKHMXQJOHIORRU([WHQVLYHDERYHJURXQGURRWV\VWHPVDQGKDQJLQJYLQHVDUHFRPPRQ7KHVH
FRQGLWLRQVFRPELQHGZLWKDZHWDQGVRJJ\VXUIDFHPDNHYHKLFXODUWUDIILFGLIILFXOW)RRWPRYHPHQWLVHDVLHU
LQWURSLFDOUDLQIRUHVWVWKDQLQRWKHUW\SHVRIMXQJOH([FHSWZKHUHIHOOHGWUHHVFUHDWHDJDSLQWKHFDQRS\RI
WKHUDLQIRUHVWREVHUYDWLRQIURPWKHDLULVQHDUO\LPSRVVLEOH*URXQGREVHUYDWLRQLVJHQHUDOO\OLPLWHGWR
IHHWPHWHUVRUOHVV

Deciduous Forests
 'HFLGXRXVIRUHVWVDUHIRXQGLQVXEWURSLFDO]RQHVZKHUHERWKZHWDQGGU\VHDVRQVH[LVW7KHVHMXQJOHV
JHQHUDOO\JURZEHWZHHQWKH7URSLFRI&DQFHUDQGWKH7URSLFRI&DSULFRUQ,QWKHZHWVHDVRQWUHHVDUHIXOO\
OHDYHGLQWKHGU\VHDVRQVRPHRIWKHIROLDJHGLHV7UHHVJHQHUDOO\JURZOHVVGHQVHO\LQGHFLGXRXVIRUHVWV
WKDQLQUDLQIRUHVWV7KLVWKLQQHUFDQRS\DOORZVPRUHUDLQDQGVXQOLJKWWRILOWHUWRWKHJURXQGSURGXFLQJWKLFN
XQGHUJURZWK7KHWKLFNXQGHUJURZWKRIGHFLGXRXVMXQJOHVKDVDWHQGHQF\WRFDQDOL]HIRRWPRYHPHQWGXHWR
WKHGHOLEHUDWHHIIRUWVUHTXLUHGWREUHDNQHZWUDLO,QWKHZHWVHDVRQZLWKWKHWUHHVLQIXOOOHDIREVHUYDWLRQERWK
IURPWKHDLUDQGRQWKHJURXQGLVVHYHUHO\OLPLWHGWKHIXOO OHDYHVLPSDFWKXPDQREVHUYDWLRQRSWLFVDQG
GHWHFWLRQIURPDYLDWLRQDVVHWV

6HFRQGDU\-XQJOHV
 6HFRQGDU\MXQJOHVJURZSUHGRPLQDQWO\DWWKHHGJHRIWURSLFDOUDLQIRUHVWVDQGGHFLGXRXVIRUHVWVDQG
LQDUHDVZKHUHMXQJOHVKDYHEHHQFOHDUHGDQGDEDQGRQHG6HFRQGDU\MXQJOHVDSSHDUZKHQWKHJURXQGKDV
EHHQUHSHDWHGO\H[SRVHGWRVXQOLJKW7KHVHDUHDVW\SLFDOO\ GLVSOD\KHDY\RYHUJURZWKZLWKZHHGVJUDVVHV
WKRUQVIHUQVFDQHVDQGVKUXEV)RRWPRYHPHQWLVH[WUHPHO\VORZDQGGLIILFXOW9HJHWDWLRQPD\UHDFKWRD
KHLJKWRIIHHWPHWHUVZKLFKVHYHUHO\OLPLWVREVHUYDWLRQ6HHILJXUHIRUDQH[DPSOHRIDVHFRQGDU\
MXQJOH

)LJXUH6HFRQGDU\MXQJOH

6DYDQQD
 6DYDQQDVDUHJHQHUDOO\ORFDWHGDZD\IURPWKHHTXDWRUEXWZLWKLQWKHWURSLFV6DYDQQDVFRQVLVWRIEURDG
RSHQJUDVVODQGVZLWKIHZWUHHV7KHWKLFNJUDVVKDVEURDGEODGHVDQGJURZVWRIHHWWRPHWHUVKLJK

6HSWHPEHU $730&73& 

&KDSWHU

0RYHPHQW LQ WKH VDYDQQD LV JHQHUDOO\ HDVLHU WKDQ LQ RWKHU W\SHV RI MXQJOH DUHDV HVSHFLDOO\ IRU YHKLFOHV
+RZHYHUWKH VKDUSHGJHGGHQVHJUDVVDQGH[WUHPHKHDWPDNHIRRWPRYHPHQWDVORZDQGWLULQJSURFHVV
*URXQGYLVLELOLW\YDULHVGHSHQGLQJRQWKHKHLJKWRIWKHVDYDQQDJUDVV&RQFHDOPHQWIURPDLUREVHUYDWLRQLV
SRRUIRUERWKWURRSVDQGYHKLFOHV6HHILJXUHIRUDQH[DPSOHRIDVDYDQQD

)LJXUH6DYDQQD

-81*/()($785(6
 &RPPRQMXQJOHIHDWXUHVLQFOXGHVZDPSVULYHUVEDPERRIRUHVWVDQGFXOWLYDWHGDUHDV

6ZDPSV
 6ZDPSVDUHIRUHVWHGZHWODQGV&RPPRQWRDOOORZMXQJOHDUHDVVZDPSVKDYHORWVRIZDWHUDQGSRRU
GUDLQDJH 6ZDPSV ZLOO DIIHFW ORJLVWLFDO FRQVLGHUDWLRQV LQ OLWWRUDO RSHUDWLRQV 7KHUH DUH WZR EDVLF W\SHV RI
VZDPSVPDQJURYHDQGSDOP

Mangrove Swamps
 0DQJURYHVZDPSVJURZDORQJFRDVWDODUHDVZKHUHYHUWLGHVLQIOXHQFHZDWHUIORZ7KHPDQJURYHLVD
VKUXEOLNHWUHHZKLFKJURZVWRIHHWWRPHWHUVKLJK7KHVHWUHHVKDYHWDQJOHGURRWV\VWHPVERWK
DERYHDQGEHORZWKHZDWHUOHYHOZKLFKUHVWULFWPRYHPHQWWRIRRWRUVPDOOERDWV2EVHUYDWLRQLQPDQJURYH
VZDPSV²ERWKRQWKHJURXQGDQGIURPWKHDLU²LVSRRU&RQFHDOPHQWLVH[FHOOHQW

Palm Swamps
 3DOP VZDPSV H[LVW LQ ERWK VDOW DQG IUHVKZDWHU DUHDV /LNH PRYHPHQW LQ WKH PDQJURYH VZDPSV
PRYHPHQWWKURXJKSDOPVZDPSVLVPRVWO\UHVWULFWHGWRIRRWVRPHWLPHVVPDOOERDWV9HKLFXODUWUDIILFLV
QHDUO\LPSRVVLEOHH[FHSWDIWHUH[WHQVLYHURDGFRQVWUXFWLRQE\HQJLQHHUV2EVHUYDWLRQDQGILHOGVRIILUHDUH
YHU\OLPLWHG&RQFHDOPHQWIURPERWKDLUDQGJURXQGREVHUYDWLRQLVH[FHOOHQW

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

%DPERR
 %DPERRJURZVLQFOXPSVRIYDU\LQJKHLJKWVLQMXQJOHVWKURXJKRXWWKHWURSLFV/DUJHVWDQGVRIEDPERR
DUHH[FHOOHQWREVWDFOHVIRUZKHHOHGRUWUDFNHGYHKLFOHV7URRSPRYHPHQWRQIRRWWKURXJKEDPERRLVVORZ
H[KDXVWLQJDQGQRLV\7URRSVVKRXOGE\SDVVEDPERRVWDQGVLISRVVLEOH

&XOWLYDWHG$UHDV
 &XOWLYDWHGDUHDVH[LVWWKURXJKRXWWKHWURSLFVDQGUDQJHIURPODUJHZHOOSODQQHGDQGZHOOPDQDJHG
IDUPVDQGSODQWDWLRQVWRVPDOOWUDFWVFXOWLYDWHGE\LQGLYLGXDOIDUPHUV5LFHSDGGLHVSODQWDWLRQVDQGVPDOO
IDUPVPDNHXSWKHWKUHHJHQHUDOW\SHVRIFXOWLYDWHGDUHDV

Rice Paddies
 5LFHSDGGLHVDUHIODWIORRGHGILHOGVZLWKPXGG\DQGVRIWERWWRPV)DUPHUVFRQWUROWKHIORRGLQJRIWKH
ILHOGV ZLWKDQHWZRUNRIGLNHVDQGLUULJDWLRQGLWFKHVDQGIOXFWXDWHIORRGLQJ ZLWKVHDVRQDODQGDJULFXOWXUDO
F\FOHV 7KH YDULDEOH GHSWK RI IORRG ZDWHUV GLUHFWO\ LPSDFWV PRYHPHQW ZLWK KLJKHU IORRG ZDWHUV PDNLQJ
PRYHPHQWYHU\UHVWULFWHG+RZHYHUWUDYHOE\YHKLFOHLVGLIILFXOWHYHQZKHQILHOGVDUHGU\&RQFHDOPHQWLV
SRRULQULFHSDGGLHV&RYHULVOLPLWHGWRWKHGLNHVDQGWKHQRQO\IURPJURXQGILUH2EVHUYDWLRQDQGILHOGVRI
ILUHDUHH[FHOOHQW)RRWPRYHPHQWLVSRRUZKHQWKHILHOGVDUHZHWEHFDXVHWURRSVPXVWZDGHWKURXJKZDWHU
DQGVRIWPXGWKDWLVRIWHQLQFKHVPHWHUGHHS:KHQWKHILHOGVDUHGU\IRRWPRYHPHQWEHFRPHVHDVLHU
'LNHVDERXWWRIHHWWRPHWHUVWDOODUHWKHRQO\REVWDFOHV

Plantations
 3ODQWDWLRQVDUHODUJHIDUPVRUHVWDWHVZKHUHWUHHFURSVVXFKDVUXEEHUDQGFRFRQXWDUHJURZQ7KH\
DUH XVXDOO\ FDUHIXOO\ SODQQHG DQG IUHH RI XQGHUJURZWK OLNH D ZHOOWHQGHG SDUN 0RYHPHQW WKURXJK
SODQWDWLRQVLVJHQHUDOO\HDV\2EVHUYDWLRQDORQJWKHURZVRIWUHHVLVJHQHUDOO\JRRG&RYHUDQGFRQFHDOPHQW
FDQEHIRXQGEHKLQGWKHWUHHVEXWWURRSVPRYLQJGRZQWKHFXOWLYDWHGURZVDUHH[SRVHG

Small Farms
 6PDOOIDUPVH[LVWWKURXJKRXWWKHWURSLFV)DUPHUVRIWHQFUHDWHVPDOOIDUPVZKHQWKH\FOHDUVHFRQGDU\
MXQJOHWRFXOWLYDWHFURSV0RYHPHQWWKURXJKWKHVHDUHDVPD\EHGLIILFXOWGXHWRIDOOHQWUHHVDQGVFUXEEUXVK
*HQHUDOO\ REVHUYDWLRQ DQG ILHOGV RI ILUH KDYH IHZHU UHVWULFWLRQV LQ FXOWLYDWHG DUHDV WKDQ LQ XQFXOWLYDWHG
MXQJOHV+RZHYHUWKHFXOWLYDWLRQUHPRYHVPXFKRIWKHQDWXUDOFRYHUDQGFRQFHDOPHQWOHDYLQJWURRSVPRUH
H[SRVHGLQWKHVHDUHDV

:($7+(5
 /HDGHUVDQGWURRSVPXVWXQGHUVWDQGWKDWWKHMXQJOHHQYLURQPHQWLVQHXWUDOLWDIIHFWVERWKIULHQGO\DQG
HQHP\WURRSVWKHVDPH/HDGHUVDQGWURRSVVKRXOGUHIHUHQFH$73DQG0&53%0&53$
ZKHQSUHSDULQJHVWLPDWHVRQWKHHIIHFWVRIWHUUDLQDQGZHDWKHURQRSHUDWLRQV
 7KHGHJUHHWRZKLFKWURRSVDUHWUDLQHGWROLYHDQGILJKWLQKDUVKHQYLURQPHQWVZLOOGHWHUPLQHWKHLU
XQLW¶V VXFFHVV RU IDLOXUH +LJK KHDW DQG KXPLGLW\ DUH NH\ FKDUDFWHULVWLFV RI PRVW MXQJOHV +XPLGLW\
FRPSRXQGV WKH HIIHFWV RI KLJK KHDW E\ PDNLQJ LW PRUH GLIILFXOW IRU 6ROGLHUV0DULQHV WR UHJXODWH ERG\
WHPSHUDWXUHWKURXJKVZHDWHYDSRUDWLRQ
 'HVSLWHWKHREYLRXVLPSDFWRIKHDWDQGKXPLGLW\6ROGLHUV0DULQHVPXVWUHFRJQL]HWKDWWKH\ZLOOOLNHO\
EHH[SRVHGWRFROGDVZHOO7HPSHUDWXUHVLQWKHMXQJOHPD\GURSGHJUHHVRUPRUHDWQLJKW:KHQFRXSOHG
ZLWK KLJK KXPLGLW\ DQG RIWHQ UDLQ\ FRQGLWLRQV 6ROGLHUV0DULQHV PD\ EHFRPH TXLWH XQFRPIRUWDEOH LI QRW
SURSHUO\SUHSDUHG7HPSHUDWXUHVEHORZIUHH]LQJGRQRWRFFXUEXWFKLOO\QLJKWVDUHFRPPRQ,QVRPHMXQJOHV
GXULQJWKHZLQWHUPRQWKVWKHQLJKWVDUHFROGHQRXJKWRUHTXLUHDZRROEODQNHWRUSRQFKROLQHUIRUVOHHSLQJ
$WDPLQLPXP6ROGLHUV0DULQHVVKRXOGUHSODFHZHWFORWKLQJZRUQGXULQJWKHGD\ZLWKGU\FORWKLQJDWQLJKW
 5DLQIDOO LQ PDQ\ SDUWV RI WKH WURSLFV LV PXFK JUHDWHU WKDQ WKDW LQ PRVW WHPSHUDWH ]RQHV 7URSLFDO
GRZQSRXUVDUHXVXDOO\IROORZHGE\FOHDUVNLHVDQGLQPRVWSODFHVWKHUDLQVDUHSUHGLFWDEOHDWFHUWDLQWLPHV

6HSWHPEHU $730&73& 

&KDSWHU

RIWKHGD\+RZHYHUWKHUHDUHDUHDVDQGWLPHVRIWKH\HDUZKHUHWKHUHLVQHDUO\FRQWLQXRXVUDLQIDOOLQPDQ\
DUHDVRIWKHWURSLFV

7(55$,1
 -XQJOH WHUUDLQ LV YDULHG DQG UDQJHV IURP QHDUO\ IODW VDYDQQD WR LPSDVVDEOH PRXQWDLQ UDQJHV 8QLWV
SUHSDULQJWRGHSOR\WRVSHFLILFMXQJOHUHJLRQVVKRXOGVHHNGHWDLOHGLQIRUPDWLRQRQWHUUDLQSUHYDOHQWLQWKH
H[SHFWHGDUHDRIRSHUDWLRQVGXHWRWKHWHUUDLQYDULDWLRQV
 -XQJOHWHUUDLQFDQFDQDOL]HRSHUDWLRQVGXHWRSRRUFURVVFRXQWU\PRELOLW\OLPLWHGKDUGHQHGURDGVDQG
WUDLOVDQGOLPLWHGEULGJHVDQGKDUGHQHGFURVVLQJSRLQWV6RPHDUHDVDIIHFWFURVVFRXQWU\PRELOLW\ZLWKSRRU
WUDIILFDELOLW\ GXH WR VRIW VRLOV URFN\ DUHDV PRXQWDLQV GHQVH WR LPSHQHWUDEOH YHJHWDWLRQ PDUVK\ DUHDV
VWUHDPVDQGPDMRUULYHUV5RDGVDUHXVXDOO\VFDUFHSRRUO\PDLQWDLQHGDQGSULPLWLYH/LPLWHGLQIUDVWUXFWXUH
UHGXFHVKDUGHQHGFURVVLQJSRLQWVRYHURUWKURXJKZDWHUIHDWXUHV

2%6(59$7,21$1'),(/'62)),5(
 2EVHUYDWLRQDQGILHOGVRIILUHDUHJHQHUDOO\UHVWULFWHGLQMXQJOHV6WHHSMXQJOHWHUUDLQ H[WHQVLYHDQG
GHQVHYHJHWDWLRQDQGLQWHUPLWWHQWDQGUDSLGO\FKDQJLQJDWPRVSKHULFFRQGLWLRQVUHVWULFWGLUHFWILUHZHDSRQV
ZHOOVKRUWRIWKHLUPD[LPXPUDQJH7KHPLQLPXPHQJDJHPHQWUDQJHRIZHDSRQV\VWHPVPXVWEHFRQVLGHUHG
ZKHQHPSODFLQJDQGHPSOR\LQJZHDSRQVHVSHFLDOO\IRUZLUHJXLGHGPXQLWLRQVDQGGHOD\HGIXVHGZHDSRQV
 (YHQWKRXJKWKHODQGVFDSHDSSHDUVIODWZKHQYLHZHGIURPDERYHWKHWHUUDLQXQGHUWKHGHQVHYHJHWDWLYH
JURZWKFDQEHXQGXODWLQJZLWKUHODWLYHO\GHHSVWUHDPVULYHUEHGVDQGGHSUHVVLRQVFUHDWLQJVLJQLILFDQWGHDG
VSDFH'LUHFWILUHZHDSRQVPXVWEHVLWHGWRSURYLGHPXWXDOVXSSRUWDQGFRYHUGHDGVSDFH7URRSVFRYHUGHDG
VSDFHE\XWLOL]LQJLQGLUHFWILUHVSDLUHGZLWKVHQVRUVRUREVHUYDWLRQSRVWVRUDHULDOILUHDVVHWV
 :KHQ XQLWV FDQQRW HVWDEOLVK PDQQHG REVHUYDWLRQ SRVWV IURP GRPLQDQW WHUUDLQ WKH RQO\ PHDQV RI
REVHUYDWLRQPD\EHIURPPDQQHGDLUFUDIWV\VWHPVXQPDQQHGDLUFUDIWV\VWHPV8$6VRUHOHFWURQLFVHQVRU
+RZHYHUGHQVHYHJHWDWLRQDQGZHDWKHUFRQGLWLRQVFDQVHYHUHO\OLPLWWKHVHSODWIRUPVDQGV\VWHPV
 8$6V VKRXOG EH XVHG LQ FRQMXQFWLRQ ZLWK RWKHU XQPDQQHG DQG PDQQHG UHFRQQDLVVDQFH DQG
VXUYHLOODQFHV\VWHPVLQDMXQJOHHQYLURQPHQW 6XFFHVVIXO 8$6HPSOR\PHQWLQDMXQJOHUHTXLUHVDGHTXDWH
SODQQLQJ IRU GHQVH YHJHWDWLRQ DQG RWKHU HQYLURQPHQWDO IDFWRUV 'HSHQGLQJ RQ WKH SODWIRUP DQG PLVVLRQ
SODQQHUVDQGRSHUDWRUVPD\KDYHWRFRQVLGHUWKHHQYLURQPHQWDOIDFWRUVLQIRXUVHSDUDWHORFDWLRQVODQGLQJ
DQG UHFRYHU\ VLWH WUDQVLW URXWH VDWHOOLWH UHOD\ VLWH DQG DQWLFLSDWHG WDUJHW ORFDWLRQ 6HH $73 
0&53>0&53$@1773$)773DQG0&53>0&:3@IRUGHWDLOV
RQ SODQQLQJ IRU 8$6V )RU 8$6 FKDUDFWHULVWLFV DQG HPSOR\PHQW FRQVLGHUDWLRQV UHIHU WR $73 
$730&53>0&53$@1773$)773DQG0&53>0&:3
@ DQGDOODSSOLFDEOHWHFKQLFDOPDQXDOV
 7URRSVFDQFRQGXFWRUHQKDQFHREVHUYDWLRQXVLQJHOHFWURQLFGHYLFHVWKDWXWLOL]HGLVFUHWHEDQGVRIWKH
HOHFWURPDJQHWLFVSHFWUXP(OHFWURQLFDOO\DVVLVWHGREVHUYDWLRQLQFOXGHVUDGDULPDJHLQWHQVLILHUVDQGLQIUDUHG
,5V\VWHPVWKDWPD\EHJURXQGEDVHGRUDHULDO
 5DGDUVHPLWH[WUHPHO\VKRUWEXUVWVRIHOHFWURPDJQHWLFUDGLDWLRQZKLFKDUHWKHQUHIOHFWHGRIIDWDUJHW
DQGUHWXUQDVDQHFKR6HYHUDOUDGDUPRGHVZRUNLQWKHMXQJOHLQFOXGLQJPRYLQJWDUJHWLQGLFDWRUDQGV\QWKHWLF
DSHUWXUH UDGDU 5DGDU FDQQRW SRVLWLYHO\ LGHQWLI\ D WDUJHW FDQQRW VHH WKURXJK EXLOGLQJV RU WHUUDLQ DQG LV
GHJUDGHGE\UDLQDQGYHJHWDWLRQ$GGLWLRQDOO\UDGDULVDQDFWLYHHOHFWURPDJQHWLFHPLWWHUWKDWFDQEHVHQVHG
E\ WKUHDW V\VWHPV 6HH $73 0&53 $ >0&53 $@1773 $)773  IRU
DGGLWLRQDOLQIRUPDWLRQUHJDUGLQJDHULDOUDGDURSHUDWLRQV
 ,PDJHLQWHQVLILHUVVXFKDVQLJKWYLVLRQGHYLFHV19'VZRUNE\DPSOLI\LQJYLVLEOHOLJKWDQGWKH,5
VSHFWUXPFORVHVWWRWKHIUHTXHQFLHVRIYLVLEOHOLJKWWRFUHDWHDGLJLWDOSLFWXUH19'VDUHSDVVLYHXQOHVVSDLUHG
ZLWK DQ LOOXPLQDWRU IRU DFWLYH XVH 3DVVLYH 19'V FDQ RSHUDWH HIIHFWLYHO\ LQ MXQJOH HQYLURQPHQWV ZKHQ
DPELHQWYLVLEOHOLJKWH[LVWV+RZHYHUFORXGFRYHUIRJLQFOHPHQWZHDWKHUDQGGHQVHRYHUKHDGYHJHWDWLRQ
QHJDWLYHO\LPSDFWSDVVLYH19'V6HH7&IRUPRUHRQXVLQJ19'V
 ,5LPDJLQJVHQVRUVZRUNE\DPSOLI\LQJWKHPLGDQGIDUZDYHOHQJWKVRIWKH,5EDQGWRFUHDWHDGLJLWDO
SLFWXUHUHSUHVHQWLQJWKHWRWDO,5UDGLDWLRQRIDQREMHFWDQGLWVEDFNJURXQG,5VHQVRUVDUHJHQHUDOO\SDVVLYH

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

GHYLFHV,5VHQVRUVZRUNHIIHFWLYHO\LQMXQJOHHQYLURQPHQWVLQDOOOLJKWLQJ7KHSHUIRUPDQFHFKDUDFWHULVWLFV
RI DQ ,5 VHQVRU GHWHUPLQHV LWV FDSDELOLWLHV WR VHH WKURXJK GLIIHUHQW GHQVLWLHV DQG W\SHV RI DWPRVSKHULF
REVFXUDQWV6HH$730&53>0&53$@1773$)7730&53
>0&:3@DQG7&IRUPRUHLQIRUPDWLRQRQ,5VHQVRUV,5LPDJLQJVHQVRUVDUHHIIHFWLYHGXULQJ
DOOHQYLURQPHQWDOFRQGLWLRQV
 6HQVRUV\VWHPVRSHUDWHLQRQHRIWZRPRGHV
z $FWLYH$FWLYHVHQVRUVHPLWHQHUJ\WKDWUHIOHFWVIURPWDUJHWVDQGLVUHFDSWXUHGE\WKHHPLWWLQJRU
RWKHUQHDUE\VHQVRULQGLFDWLQJWKHSUHVHQFHRIDWDUJHW([DPSOHVRIDFWLYHVHQVRUVDUHVHDUFKOLJKWV
DQGUDGDU
z 3DVVLYH3DVVLYHVHQVRUVGRQRWHPLWHQHUJ\WKH\FROOHFWHQHUJ\ZKLFKPD\LQGLFDWHWKHSUHVHQFH
RIDWDUJHW([DPSOHVRISDVVLYHVHQVRUVDUHWKHKXPDQH\H19'V,5LPDJLQJGHYLFHVDFRXVWLF
VHQVRUVDQGSKRWRJUDSKLFGHYLFHV
 &RUUHFWLRQRILQGLUHFWDQGDHULDOILUHVFDQEHFRPSOLFDWHGLQWKHMXQJOHHQYLURQPHQW+HDY\WUHHFRYHU
FDQFDXVHPXQLWLRQVWRGHWRQDWHLQWKHRYHUKDQJLQJEUDQFKHV7URRSVFDQRYHUFRPHWKLVHDUO\GHWRQDWLRQE\
XVLQJVSHFLDOIXVLQJ$GGLWLRQDOO\WURRSVPD\IDLOWRREVHUYHWKHLPSDFWRIURXQGVGXHWROLPLWHGREVHUYDWLRQ
UDQJHVUHTXLULQJDGMXVWPHQWRIILUHVWREHFRQGXFWHGXVLQJRWKHUPHWKRGV

$9(18(62)$3352$&+
 5RDGV DQG WUDLOV FULVVFURVV PDQ\ MXQJOH DUHDV WKH PDMRULW\ RI ZKLFK DUH XQLPSURYHG DQG QRW DOO
ZHDWKHUFDSDEOH,PSURYHGDOOZHDWKHUURDGVWKDWVXSSRUWZKHHOHGYHKLFOHVDUHUDUHFRPSOH[URDGV\VWHPV
EH\RQGVLPSOHFRPPHUFLDOOLQNVJHQHUDOO\GRQRWH[LVW )RUFHQWXULHVORFDOV KDYH XVHGVLPSOHURDGV DQG
WUDLOVWRFRQQHFWFHQWHUVRIFRPPHUFHFROOHFWLRQSRLQWVDQGQDWXUDOUHVRXUFHVVXFKDVPLQHUDOGHSRVLWVDQG
WLPEHU UHVRXUFHV 5RDGV DQG WUDLOV LQ MXQJOH UHJLRQV VXSSRUW GLVPRXQWHG PRYHPHQW 6SHHG RI PRYHPHQW
YDULHVGHSHQGLQJRQWKHZHDWKHUJURXQGFRPSRVLWLRQZHWJDSFURVVLQJVDQGWRSRJUDSKLFDOLQIOXHQFHV
 7KH UHODWLYHO\ IHZ LPSURYHG DOOZHDWKHU URXWHV LQ PDQ\ MXQJOH DUHDV ZLOO FKDQQHOL]H PRYHPHQW RI
ZKHHOHGDQGWUDFNHGYHKLFOHV/RJLVWLFVXQLWVDUHKHDYLO\LPSDFWHGE\WKLVVFDUFLW\DQGFKDQQHOL]LQJDVWKH\
UHTXLUH LPSURYHG URXWHV LQ RUGHU WR PDLQWDLQ WKH OLQH RI FRPPXQLFDWLRQV /2& IRU WKHLU ODUJH PLVVLRQ
HVVHQWLDOYHKLFOHVWKDWKDYHOLPLWHGRIIURDGWUDIILFDELOLW\
 -XQJOHUHJLRQVXVHULYHUVDQGVWUHDPVDVKLJKZD\VWRPRYHODUJHDPRXQWVRIPDWHULDODQ\VLJQLILFDQW
GLVWDQFH7KHVHULYHUVDQGVWUHDPVRIWHQ KDYHKHDY\RYHUJURZWKSURYLGLQJFRQFHDOPHQWIURPJURXQGDQG
DHULDO REVHUYDWLRQ 7KH WKUHDW RI IOXFWXDWLQJ ZDWHU OHYHOV GXH WR SUHFLSLWDWLRQ RU WKH ODFN WKHUHRI SRVHV
VLJQLILFDQWGDQJHUWR6ROGLHUV0DULQHVDQGWKHLUHTXLSPHQWDVWKH\WUDYHUVHULYHUVDQGVWUHDPV)ORRGLQJPD\
RFFXUHYHQZKHQLWLVQRWUDLQLQJLQWKHLPPHGLDWHDUHD%HIRUHFURVVLQJULYHUVRUVWUHDPVXQLWVUHFRQQRLWHU
WKHIDUVLGHRIWKHOLQHDUREVWDFOHIRUERWKWUDIILFDELOLW\DQGVHFXULW\(QHP\IRUFHVLQFRYHUHGDQGFRQFHDOHG
SRVLWLRQVFDQHDVLO\HQJDJHH[SRVHG6ROGLHUVDQG0DULQHVGXULQJJDSFURVVLQJV
 1RUPDOO\ PDQJURYH DQG SDOP VZDPSV SURYH LPSDVVDEOH WR DOO EXW WKH OLJKWHVW HTXLSSHG IRUFHV
5HJDUGOHVVDQ\ IRUFHUHTXLUHV GHWDLOHGUHFRQQDLVVDQFH WRDVVHVVWUDIILFDELOLW\0DQ\MXQJOHVKDYH VZDPS
DUHDVDVVRFLDWHG ZLWKULYHUVDQGVWUHDPVDV ZHOODVDORQJWKHVHDFRDVW 2OGWUDLOVRUSDWKV PD\FURVVWKH
VZDPSZKLFKDUHYLVLEOHIURPWKHJURXQGEXWLQYLVLEOHIURPDHULDOREVHUYDWLRQ7UDIILFDELOLW\RIVZDPSV
GLUHFWO\UHODWHVWRWKHGHSWKRIWKHZDWHUZKLFKFDQYDU\ZLGHO\EDVHGXSRQSUHFLSLWDWLRQDQGWKHWLPHRIWKH
\HDU
 ([SORUDWLRQIRUDQGSURGXFWLRQRIRLODQGRWKHUQDWXUDOUHVRXUFHVPHDQVZHOOVSLSHOLQHVUHILQHULHV
TXDUULHVDQGFUXVKLQJSODQWVPD\EHRIVWUDWHJLFLPSRUWDQFHLQWKHMXQJOH3LSHOLQHVLQVWDOOHGIHHWPHWHU
RIIWKHJURXQGLQKLELWPRYHPHQW6XEVXUIDFHSLSHOLQHVFDQDOVRFUHDWHDQREVWDFOH,Q6RXWKZHVW$VLDPDSV
JHQHUDOO\LQGLFDWHORFDWLRQVRIVXEVXUIDFHSLSHOLQHV2IWHQWKHVHSLSHVDUHEXULHGDWVXFKDVKDOORZGHSWKWKDW
KHDY\YHKLFOHVFDQGDPDJHWKHPZKHQWUDYHUVLQJWKHP)XUWKHUPRUHLIDSLSHOLQHUXSWXUHVQRWRQO\LVWKH
VSLOORIRLODFRQVLGHUDWLRQEXWWKHIXPHVPD\EHKD]DUGRXVDVZHOO
 $JULFXOWXUH LQMXQJOHDUHDVW\SLFDOO\KDVODUJHHIIHFWVRQWUDIILFDELOLW\7KHGLNHV\VWHPVDVVRFLDWHG
ZLWKULFHSDGGLHVFDQOLPLWVXUIDFHPRELOLW\DQGFUHDWHFKRNHSRLQWV/DUJHSODQWDWLRQVFUHDWHDUHDVZLWKJUHDW
DPRXQWV RI WUDIILFDELOLW\ IRU PRXQWHG DQG GLVPRXQWHG IRUFHV $EDQGRQHG VPDOO IDUPV FDQ FUHDWH VPDOO
SRFNHWVRIVHFRQGDU\MXQJOHZKLFKVLJQLILFDQWO\GHFUHDVHVWUDIILFDELOLW\

6HSWHPEHU $730&73& 

&KDSWHU

.(<7(55$,1
 Key terrainLVDQLGHQWLILDEOHFKDUDFWHULVWLFZKRVHVHL]XUHRUUHWHQWLRQDIIRUGVDPDUNHGDGYDQWDJHWR
HLWKHUFRPEDWDQW$'3.H\WHUUDLQLQWKHMXQJOHFDQEHDQ\PDQPDGHIHDWXUHZDWHUFURVVLQJZDWHU
ZD\RUKLJKJURXQG%HFDXVHWKHUHDUHIHZPDQPDGHIHDWXUHVLQWKHMXQJOHWKRVHWKDWGRH[LVWFDQEHFRPH
LPSRUWDQWSHUKDSVHYHQNH\%ULGJHVRYHUZDWHUZD\VUHJDUGOHVVRIVL]H RIWHQEHFRPHNH\WHUUDLQGXHWR
WKHLUUHODWLYHVFDUFLW\7KHKLJKJURXQGLQWKHMXQJOHFDQEHNH\WHUUDLQEXWOLPLWHGREVHUYDWLRQDQGILHOGVRI
ILUHPD\UHGXFHWKHLULPSRUWDQFH
 ,QMXQJOHUHJLRQVQDYLJDEOHZDWHUZD\VDUHH[WUHPHO\OLNHO\WREHNH\WHUUDLQ7KH\RIWHQRIIHUWKHRQO\
ZD\WRPRYHODUJHDPRXQWVRISHRSOHVXSSOLHVDQGHTXLSPHQWVLJQLILFDQWGLVWDQFHVUHODWLYHO\UDSLGO\7KH
PHDQGHULQJURXWHVDQGYDULDELOLW\RIZDWHUIORZVFRPSOLFDWHVWKHLUXWLOL]DWLRQDQGVHFXULW\

2%67$&/(6
 2EVWDFOHVDERXQGLQMXQJOHUHJLRQV-XQJOHDUHJHQHUDOO\ODUJHQDWXUDOREVWDFOHVWRZKHHOHGDQGWUDFNHG
YHKLFOHVDVZHOODVGLVPRXQWHGWURRSV:DWHUZD\VWKLFNWRLPSHQHWUDEOHYHJHWDWLRQVWHHSVORSHVVZDPSV
ZDWHUVDWXUDWHGVRLOVDQGPRXQWDLQVDOOKLQGHUFURVVFRXQWU\PRYHPHQW
 7KHIHZWUDIILFDEOHDUHDVLQWKHMXQJOHDUHLGHDOIRUHPSOR\LQJPDQPDGHREVWDFOHVDVWKHQDWXUDOWHUUDLQ
GHQLHVUHDGLO\DYDLODEOHE\SDVVURXWHV%XULHGPLQHVRIDOOW\SHVDUHLQFUHGLEO\HIIHFWLYHLQMXQJOHUHJLRQV
GXHWKHDELOLW\RIYHJHWDWLRQWRKLGHDQ\HYLGHQFHRIWKHLUHPSODFHPHQW
 5LYHUVDQGVWUHDPVFDQSRVHDGDQJHUWRPRYLQJXQLWVDVWKH\FDQDSSHDUXQH[SHFWHGO\DQGYHKLFOHV
DQGSHUVRQQHOFDQIDOORIIWKHHOHYDWHGHPEDQNPHQW7KHHPEDQNPHQWVRIDULYHURIVWUHDPPD\KDYHKHDY\
HURVLRQ DQG FROODSVH XQGHU WKH ZHLJKW RI SHUVRQQHO RU YHKLFOHV 5LYHU DQG VWUHDP HPEDQNPHQWV DUH
SDUWLFXODUO\GLIILFXOWWRGHWHFWZKHQFRQGXFWLQJRSHUDWLRQVXVLQJ19'VZLWKOLPLWHGDPELHQWLOOXPLQDWLRQ
DQGWKLFNYHJHWDWLRQ

:DWHU
 $QQXDOSUHFLSLWDWLRQUDWHVLQWKHMXQJOHDUHWKHKLJKHVWLQWKHZRUOG0DQ\RIWKHPDMRUULYHUVRIWKH
ZRUOGRUWKHLUWULEXWDULHVDUHSDUWRIWKHMXQJOHUHJLRQV7KH$PD]RQ5LYHUWUDYHUVHVWKH$PD]RQ5DLQIRUHVW
DQG LV WKH ODUJHVW ULYHU LQ WKH ZRUOG 7KH PRYHPHQW DQG SUHVHQFH RI ZDWHU LQ MXQJOH LV LWV GHILQLQJ
FKDUDFWHULVWLFDQGKDVDODUJHLPSDFWRQPLOLWDU\RSHUDWLRQV

9HJHWDWLRQ
 -XQJOH YHJHWDWLRQ XVXDOO\ JURZV LQ GHQVH FRQFHQWUDWLRQV DQG RIWHQ SURYLGHV FRQFHDOPHQW IURP WKH
JURXQG DQG DLU 1XPHURXV HGLEOH SODQWV DQG VKUXEV JURZ LQ WKH MXQJOH WKDW 6ROGLHUV0DULQHV FDQ HDW LQ
VXUYLYDOVLWXDWLRQV
 0DQ\MXQJOHSODQWVDQGVKUXEVKDYHWR[LFUHVLQVWKDWFDQFDXVHEOLVWHUV0LON\VDSDQGUHGEHDQVRU
EHUULHVDUHLQGLFDWLYHRISRLVRQRXVDQGGDQJHURXVSODQWV7KHGDQJHUIURPSRLVRQRXVSODQWVLQWKHMXQJOHLV
FRPSDUDEOH WR WKH ZRRGV RI WKH 8QLWHG 6WDWHV HDVWHUQ VHDERDUG 6ROGLHUV0DULQHV FDQ DYRLG PDQ\ RI WKH
GDQJHUV DVVRFLDWHG ZLWK SRLVRQRXV YHJHWDWLRQ E\ NHHSLQJ WKHLU VOHHYHV GRZQ DQG ZHDULQJ JORYHV ZKHQ
SUDFWLFDO5HIHUWR$73IRUPRUHLQIRUPDWLRQRQSRLVRQRXVDQGHGLEOHSODQWV

:,/'/,)(
 -XQJOHVKRVWDQLPSUHVVLYHDUUD\RIELRGLYHUVLW\DQGFRQWDLQPDQ\DQLPDOVSHFLHVWKDWFDQKDUPWURRSV
3DUDJUDSKVWKURXJKEURDGO\GHVFULEHYDULRXVDQLPDOVSHFLHVWKDWSRVHDWKUHDWWR6ROGLHUV0DULQHV
)RUPRUHLQIRUPDWLRQRQWKHYDULRXVSODQWVDQGDQLPDOVHQFRXQWHUHGLQWKHMXQJOHUHIHUWR$73

,16(&76
 1XPHURXVELWLQJDQGVWLQJLQJLQVHFWVLQKDELWWKHMXQJOH7URRSVZLWKNQRZQDOOHUJLHVWRLQVHFWELWHV
DQGVWLQJVPXVWGHSOR\ZLWKHSLQHSKULQHDXWRLQMHFWRUV0HGLFDOSURYLGHUVVKRXOGKDYHKLJKHUWKDQQRUPDO
RQKDQGTXDQWLWLHVRIHSLQHSKULQHGXHWRWKHSUHYDOHQFHRIELWLQJDQGVWLQJLQJLQVHFWVLQWKHMXQJOH

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

 0RVTXLWRHV DUH WKH PRVW GDQJHURXV RI WKH WURSLFDO LQVHFWV 7KH ODUJHVW KHDOWK WKUHDW SRVHG E\
PRVTXLWRHV LV PDODULD EXW PRVTXLWRHV FDUU\ QXPHURXV RWKHU GLVHDVHV VXFK DV FKLNXQJXQ\D GHQJXH DQG
\HOORZIHYHU$GGLWLRQDOO\PRVTXLWRHVFDQFDUU\KHDUWZRUPODUYDHWKDWFDQLQIHFWPLOLWDU\ZRUNLQJGRJV
 3UHFDXWLRQVDJDLQVWPDODULDDQGRWKHUPRVTXLWRERUQHGLVHDVHVLQFOXGH²
z 7DNLQJSUHVFULEHGDQWLPDODULDOSURSK\ODFWLFPHGLFDWLRQ
z 7DNLQJSUHVFULEHGKHDUWZRUPSURSK\ODFWLFPHGLFDWLRQPLOLWDU\ZRUNLQJGRJV
z 8VLQJLQVHFWUHSHOOHQW
z :HDULQJSHUPHWKULQLPSUHJQDWHGFORWKLQJWKDWFRYHUVDVPXFKRIWKHERG\DVSRVVLEOH
z 8VLQJQHWVRUVFUHHQVDWHYHU\RSSRUWXQLW\
z $YRLGLQJWKHZRUVWLQIHVWHGDUHDVZKHQSRVVLEOH

 0RVTXLWRHVDUHPRVWSUHYDOHQWHDUO\DWQLJKWDQGMXVWEHIRUHGDZQ7URRSVPXVWEHHVSHFLDOO\FDXWLRXV
DWWKHVHWLPHV0DODULDLVPRUHFRPPRQLQSRSXODWHGDUHDVWKDQLQXQLQKDELWHGMXQJOHVRWURRSVPXVWDOVR
EHHVSHFLDOO\FDXWLRXVZKHQRSHUDWLQJDURXQGYLOODJHV
 )OLHVFDQSRVHDKHDOWKKD]DUGWRKXPDQVWKH\FDQFDUU\DQGVSUHDGGLVHDVHVLIQRWFRQWUROOHG&HUWDLQ
IOLHV WKDW IHHG RQ PDPPDOV DQG KXPDQV FDQ FDXVH OHVLRQV DQG LQIHFWLRQV 7URRSV FDQ WDNH WKH IROORZLQJ
SUHFDXWLRQVWRSURWHFWDJDLQVWIOLHV
z 8VHLQVHFWUHSHOOHQW
z :HDUSHUPHWKULQLPSUHJQDWHGFORWKLQJWKDWFRYHUVDVPXFKRIWKHERG\DVSRVVLEOH
z 8VHQHWVRUVFUHHQVDWHYHU\RSSRUWXQLW\
z $YRLGWKHZRUVWLQIHVWHGDUHDVZKHQSRVVLEOH

 :DVSVDQGEHHVDUHFRPPRQLQVRPHMXQJOHUHJLRQVEXWWKH\ZLOOUDUHO\DWWDFNXQOHVVWKHLUQHVWVDUH
GLVWXUEHG:KHQDQHVWLVGLVWXUEHGWURRSVPXVWOHDYHWKHDUHDDQGUHDVVHPEOHDWWKHODVWUDOO\SRLQW,QFDVH
RIVWLQJV6ROGLHUV0DULQHVVHHNPHGLFDODWWHQWLRQ
 &HQWLSHGHVVSLGHUVDQGVFRUSLRQVWKDWLQKDELWWKHMXQJOHFDQLQIOLFWSDLQIXOVWLQJV7KHVHLQVHFWVSUHIHU
GDUNSODFHV $VVXFK6ROGLHUV0DULQHVVKRXOGVKDNHRXWVOHHSV\VWHPVDQGHQVXUHFORWKLQJDQGERRWVDUHIUHH
RILQVHFWVEHIRUHGUHVVLQJ6SLGHUELWHVFDQEHSDLQIXODQGRIWHQUHTXLUHPHGLFDOWUHDWPHQWGXHWRQHFURWLF
WLVVXHDQGVHFRQGDU\LQIHFWLRQ$QWVFDQEHGDQJHURXVWRWURRSVWKDWDUHO\LQJLQWKHSURQHVOHHSLQJRULQMXUHG
DQGXQDEOHWRPRYH:RXQGHGWURRSVVKRXOGEHSODFHGLQDQDUHDIUHHRIDQWV
 ,Q6RXWKHDVW$VLDQMXQJOHVWKHULFHERUHUPRWKRIWKHORZODQGVFROOHFWVDURXQGOLJKWVLQJUHDWQXPEHUV
GXULQJFHUWDLQVHDVRQV,WLVDVPDOOSODLQFRORUHGPRWKZLWKDSDLURIWLQ\EODFNVSRWVRQWKHZLQJV,WVKRXOG
QHYHUEHEUXVKHGRIIURXJKO\DVWKHVPDOOEDUEHGKDLUVRILWVERG\PD\EHJURXQGLQWRWKHVNLQ7KLVFDXVHV
DVRUHPXFKOLNHDEXUQWKDWRIWHQWDNHVZHHNVWRKHDO

/((&+(6
 /HHFKHVDUHFRPPRQLQPDQ\MXQJOHVSDUWLFXODUO\WKURXJKRXWPRVWRIWKH6RXWKZHVW3DFLILF6RXWKHDVW
$VLDDQGWKH0DOD\3HQLQVXOD7KH\DUHIRXQGLQVZDPS\DUHDVVWUHDPVDQGPRLVWMXQJOHFRXQWU\7KH\
DUHQRWYHQRPRXVEXWWKHLUELWHVPD\EHFRPHLQIHFWHGLIQRWFDUHGIRUSURSHUO\7KHVPDOOZRXQGWKDWWKH\
FDXVHPD\SURYLGHDSRLQWRIHQWU\IRULQIHFWLRXVGLVHDVHVWKDWFDXVHWURSLFDOXOFHUVRU³MXQJOHVRUHV´7URRSV
RSHUDWLQJLQWKHMXQJOHVKRXOGZDWFKIRUOHHFKHVRQWKHERG\DQGEUXVKWKHPRIIEHIRUHWKH\KDYHKDGWLPH
WRELWH:KHQWKH\KDYHWDNHQKROGWKH\VKRXOGQRWEHSXOOHGRIIIRUFLEO\EHFDXVHSDUWRIWKHOHHFKPD\
UHPDLQLQWKHVNLQ/HHFKHVZLOOUHOHDVHWKHPVHOYHVLIWRXFKHGZLWKLQVHFWUHSHOOHQWDPRLVWSLHFHRIWREDFFR
WKHEXUQLQJHQGRIDFLJDUHWWHDFRDOIURPDILUHRUDIHZGURSVRIDOFRKRO
 6WUDSVZUDSSHGDURXQGWKHORZHUSDUWRIWKHOHJV³OHHFKVWUDSV´ZLOOSUHYHQWOHHFKHVIURPFUDZOLQJ
XSWKHOHJVDQGLQWRWKHFURWFKDUHD6ROGLHUV0DULQHVVHFXUHO\EORXVHRUWXFNWKHLUWURXVHUVLQWRWKHLUERRWV
WRKLQGHUOHHFKDFFHVV

61$.(6
 :KLOHWUDYHOLQJLQMXQJOHHQYLURQPHQWVWURRSVPXVWVWD\DOHUWWRDQGDYRLGGLVWXUELQJVQDNHV7URRSV
VKRXOGEHSDUWLFXODUO\ZDWFKIXOZKHQFOHDULQJJURXQG(DFKMXQJOHUHJLRQKDVFHUWDLQVSHFLHVLQGLJHQRXVWR

6HSWHPEHU $730&73& 

&KDSWHU

WKHDUHD%HIRUHGHSOR\LQJ6ROGLHUV0DULQHVDFFHVVWKHHOHFWURQLFDOD Foreign Clearance Guide (FCG)

IRUWKHDUHDDFFHVVLEOHDWKWWSVZZZIFJSHQWDJRQPLO! 6HFWLRQ9,,³7UDYHO,QIRUPDWLRQ´RIWKHJXLGH
LGHQWLILHV GLVHDVHV FDXVHG E\ ORFDO LQVHFWV 8QLWV QHHG WR HVWDEOLVK D SURFHGXUH IRU WUHDWLQJ VQDNHELWHV
$QWLYHQLQ LV XVHG WR WUHDW YHQRPRXV VQDNHELWHV $QWLYHQLQ LV VSHFLILF WR D VQDNH VSHFLHV WKHUH LV QRW D
XQLYHUVDOVQDNHDQWLYHQLQ'HSHQGLQJRQWKHDYDLODELOLW\RIDQWLYHQLQDQGWKHDELOLW\WR SURSHUO\VWRUHLW
VQDNHELWHYLFWLPVPD\UHTXLUHXUJHQWPHGLFDOHYDFXDWLRQDQGWUHDWPHQWDWWKHQH[WKLJKHUHFKHORQRIPHGLFDO
FDUH

Note.7UHDWDOOVQDNHELWHVDVYHQRPRXV)RUWUHDWPHQWRIVQDNHELWHVUHIHUWR7&

$//,*$7256 &52&2',/(6 $1' &$,0$16

 $OOLJDWRUV FURFRGLOHV DQG FDLPDQV DUH VHPLDTXDWLF FDUQLYRURXV UHSWLOHV WKDW OLYH LQ WURSLFDO DUHDV
&URFRGLOHVDUHH[WUHPHO\VHQVLWLYHWRFROGZKLOHDOOLJDWRUVFDQHQGXUHFROGWHPSHUDWXUHV&URFRGLOHVLQKDELW
IUHVKEUDFNLVKDQGVDOWZDWHUHQYLURQPHQWVDOOLJDWRUVDQGFDLPDQVDUHJHQHUDOO\IUHVKZDWHUUHSWLOHV+LJKO\
HIIHFWLYHDPEXVKSUHGDWRUV QXPHURXVGRFXPHQWHGFDVHVRIDOOLJDWRUFURFRGLOHDQGFDLPDQDWWDFNVRQSHRSOH
H[LVWWKURXJKRXWWKHZRUOG7KHVHWHUULWRULDOFUHDWXUHVZLOORIWHQDWWDFNWRSURWHFWWKHLUQHVWLQJDUHDV7URRSV
VKRXOGH[HUFLVHFDUHZKHQFRQGXFWLQJRSHUDWLRQVLQDQGDURXQGZDWHULQKDELWHGE\DOOLJDWRUVFURFRGLOHVRU
FDLPDQV

27+(5-81*/($1,0$/6
 ,Q WKH MXQJOHV RI 6XPDWUD %DOL %RUQHR 6RXWKHDVW $VLD DQG %XUPD WKHUH DUH WLJHUV OHRSDUGV
HOHSKDQWVDQG$VLDQEXIIDOR/DWLQ$PHULFDQMXQJOHVDUH LQKDELWHGE\WKHMDJXDUDQG$IULFD KRVWVOLRQV
OHRSDUGV EXIIDOR DQG HOHSKDQWV 2UGLQDULO\ WKHVH DQLPDOV ZLOO QRW DWWDFN XQOHVV WKH\ DUH FRUQHUHG RU
ZRXQGHG
 :DWHU EXIIDOR DQG HOHSKDQWV DUH XVHG WKURXJKRXW $VLD IRU DJULFXOWXUDO DQG WLPEHU ZRUN7KH\ PD\
DSSHDUWDPHEXWWKH\DUHQRWWUXO\GRPHVWLFDWHGDQGVKRXOGRQO\EHKDQGOHGE\H[SHULHQFHGWUDLQHUVDQG
KDQGOHUV7URRSVVKRXOGDYRLGWKHVHDQLPDOV

(19,5210(17$/())(&76213(56211(/
 3URSHUO\SUHSDUHG6ROGLHUV0DULQHVVKRXOGKDYHQRUHDVRQWRIHDUWKHMXQJOH7KHMXQJOHLVQHXWUDODQG
DIIHFWV FRPEDWDQWV HTXDOO\ 7KH FRPEDWDQW ZKRVH SHUVRQQHO DQG HTXLSPHQW DUH EHVW SUHSDUHG IRU MXQJOH
RSHUDWLRQVKDVDGLVWLQFWDGYDQWDJH
 7KHMXQJOHLVIDWLJXLQJERWKSK\VLFDOO\DQGPHQWDOO\'LVFLSOLQHLVHVVHQWLDODQGDVLQJOHODSVHPD\
MHRSDUGL]H WKH PLVVLRQ DQG HQGDQJHU 6ROGLHUV0DULQHV &KDOOHQJHV DVVRFLDWHG ZLWK FRPPXQLFDWLRQV
VLWXDWLRQDODZDUHQHVVDQGPRYHPHQWDQGPDQHXYHUPDQHXYHUUHTXLUHWKDWFRPPDQGHUVH[HUFLVHDKLJKOHYHO
RIOHDGHUVKLSDQGWUDLQWKHLUVXERUGLQDWHVWRDVVXPHJUHDWHUUHVSRQVLELOLWLHV7URRSVZLWKJRRGOHDGHUVKLSDUH
PRUH DSW WR SHUIRUP ZHOO XQGHU DUGXRXV FRQGLWLRQV /HDGHUV PXVW HQVXUH DOO 6ROGLHUV0DULQHV FOHDUO\
XQGHUVWDQGZK\WKH\DUHILJKWLQJLQVXFKKDUVKFRQGLWLRQVDQGNHHSWKHLUWURRSVLQIRUPHGRIWKHRSHUDWLRQDO
VLWXDWLRQ
 :HOIDUHLVDQHVVHQWLDOIDFWRUWRPDLQWDLQLQJPRUDOHLQDKDUVKHQYLURQPHQW:HOIDUHFRYHUVPRUHWKDQ
VLPSO\SURYLGLQJPDLODQGFOHDQFORWKLQJ/HDGHUVQHHGWRNHHSWURRSVKHDOWK\DQGSK\VLFDOO\ILW7KH\PXVW
SURYLGHWURRSVDGHTXDWHSDODWDEOHUHJXODUIRRGDQGDOORZWKHPSHULRGVRIUHVWDQGVOHHS7KHVHWKLQJVZLOO
QRWDOZD\VEHSRVVLEOHDQGGLVFRPIRUWLVLQHYLWDEOHEXWLI6ROGLHUVDQG0DULQHVNQRZWKDWWKHLUOHDGHUVDUH
GRLQJHYHU\WKLQJWKH\FDQWRPDNHOLIHWROHUDEOHWKH\ZLOOPRUHUHDGLO\DFFHSWWKHH[WUHPHVEURXJKWRQE\
WKHHQYLURQPHQW
 &OLPDWLFVWUHVVRQWKHKXPDQERG\LQKRWMXQJOHVFDQVWHPIURPDQ\FRPELQDWLRQRIDLUWHPSHUDWXUH
KXPLGLW\ DLU PRYHPHQW DQG UDGLDQW KHDW 2WKHU IDFWRUV²ODFN RI DFFOLPDWL]DWLRQ GHK\GUDWLRQ DOFRKRO
FRQVXPSWLRQODFNRIVOHHSDQGSRRUKHDOWK²DOVRDGYHUVHO\DIIHFWWKHERG\

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

+($7,1-85,(6
 -XQJOHFKDUDFWHULVWLFVLQFOXGHKLJKKHDWDQGKXPLGLW\ 6ROGLHUV0DULQHVRSHUDWLQJLQWKHMXQJOHKDYHD
JUHDWHUULVNRIKHDWLQMXU\WKDQ6ROGLHUV0DULQHVRSHUDWLQJLQPRUHWHPSHUDWHHQYLURQPHQWV7RPDLQWDLQDQ
RSWLPXP WHPSHUDWXUH RI  GHJUHHV )DKUHQKHLW  &HOVLXV WKH ERG\ SURGXFHV VZHDW ZKLFK ZKHQ LW
HYDSRUDWHVFRROVWKHERG\+RZHYHUKLJKKXPLGLW\LQKLELWVHYDSRUDWLRQDQGUHGXFHVWKHFRROLQJHIIHFWZKLFK
OHDGVWRDJUHDWHUULVNRIKHDWLQMXU\
 7KHH[WUHPHKHDWRIWKHMXQJOHRIWHQFDXVHVKHDWH[KDXVWLRQDQGKHDWVWURNHDQGSXWVIRUFHVDWULVNRI
GHJUDGHGSHUIRUPDQFH)RURSWLPXPPHQWDODQGSK\VLFDOSHUIRUPDQFH6ROGLHUV0DULQHVPXVWPDLQWDLQERG\
WHPSHUDWXUHVZLWKLQQDUURZOLPLWVDQGHQDEOHWKHERG\WRORVHWKHKHDWLWJDLQVGXULQJZRUN7KHDPRXQWRI
KHDWDFFXPXODWLRQLQWKHKXPDQERG\GHSHQGVXSRQWKHDPRXQWRISK\VLFDODFWLYLW\OHYHORIK\GUDWLRQDQG
WKHVWDWHRISHUVRQDOKHDWDFFOLPDWL]DWLRQ/HDGHUVPRQLWRUWKHLUWURRSVFDUHIXOO\IRUVLJQVRIKHDWGLVWUHVVDQG
DGMXVWVFKHGXOHVZRUNUDWHVUHVWDQGZDWHUFRQVXPSWLRQDFFRUGLQJWRFRQGLWLRQV
 +HDWLQMXU\LVDQHQYLURQPHQWDOLQMXU\WKDWUHVXOWVZKHQD6ROGLHU0DULQHLVH[SRVHGWRH[WUHPHKHDW
IRUH[WHQGHGSHULRGV0HQWDOVKDUSQHVVDQGSHUIRUPDQFHFDQEHDGYHUVHO\DIIHFWHGZLWKDQLQFUHDVHRIMXVW
WZRGHJUHHV)DKUHQKHLW&HOVLXV DERYHQRUPDO,IWKHKHDWVWUHVVFRQWLQXHVWRLQFUHDVHDQGLVQRWFKHFNHG
DULVHRIILYHGHJUHHV)DKUHQKHLW&HOVLXV FDQUHVXOWLQVHULRXVLOOQHVVLQMXU\DQGGHDWK+HDWVWUHVVVORZV
UHDFWLRQWLPHVDQGGHFLVLRQPDNLQJURXWLQHWDVNVDUHGRQHPRUHVORZO\$WWKHILUVWHYLGHQFHRIKHDWLOOQHVV
OHDGHUVKDYHWURRSVVWRSZRUNPRYHLQWRVKDGHDQGUHK\GUDWH(DUO\LQWHUYHQWLRQLVLPSRUWDQW+HDWLQMXULHV
FRQVLVWRIKHDWUDVKKHDWFUDPSVKHDWH[KDXVWLRQDQGKHDWVWURNH

:$51,1*
2QHKHDWFDVXDOW\LVRIWHQIROORZHGE\RWKHUVDQGLVDQLQGLFDWLRQ
WKDWWKHHQWLUHXQLWPD\EHDWULVN

+HDW5DVK
 +HDWUDVKLVFDXVHGE\UHVWULFWLYHFORWKLQJH[FHVVLYHVZHDWLQJDQGLQDGHTXDWHK\JLHQH,WFDQGHYHORS
ZKHQVZHDWGXFWVEHFRPHEORFNHGDQGRIWHQOHDGVWRGLVFRPIRUWDQGLWFKLQJ+HDWUDVKFDQSUHYHQWHIIHFWLYH
VZHDWLQJDQGLQFUHDVHD6ROGLHU0DULQH¶VULVNIRUKHDWLQMXU\+HDWUDVKORRNVOLNHGRWVRUWLQ\SLPSOHV7KH
DIIHFWHGDUHDVFDQJHWLUULWDWHGE\FORWKLQJRUVFUDWFKLQJ,QUDUHFDVHVKHDWUDVKPD\FDXVHDVHFRQGDU\VNLQ
LQIHFWLRQ

+HDW&UDPSV
 +HDWFUDPSVDUHSDLQIXOPXVFOHFUDPSVWKDWPD\RFFXUDIWHUH[SRVXUHWRKHDWDQGDUHFDXVHGSULPDULO\
E\WKHH[FHVVLYHORVVRIPLQHUDOVDOWVIURPWKHERG\+HDWFUDPSVGLIIHUIURPH[HUWLRQDOPXVFOHFUDPSVLQ
WKDW WKH HQWLUH PXVFOH LV QRW LQYROYHG +HDW FUDPSV QRUPDOO\ LQYROYH WKH PXVFOHV RI WKH DUPV OHJV DQG
DEGRPHQ6HYHUHKHDWFDPSVFDQUHQGHUD6ROGLHU0DULQHLQHIIHFWLYH+HDWFUDPSVPD\EHDQHDUO\LQGLFDWRU
RIPRUHGDQJHURXVKHDWLQMXULHVVXFKDVKHDWH[KDXVWLRQ

+HDW([KDXVWLRQ
 +HDWH[KDXVWLRQLVWKHPRVWFRPPRQIRUPRIKHDWLQMXU\DQGJHQHUDOO\QRWDVVRFLDWHGZLWKHYLGHQFH
RIRUJDQGDPDJH7KLVFRQGLWLRQUHVXOWVIURPH[FHVVLYHORVVRIERWKVDOWDQGZDWHUXVXDOO\GXHWRSURIXVH
VZHDWLQJDVWKHERG\DWWHPSWVWRFRROLWVHOI&ODVVLFV\PSWRPVRIKHDWH[KDXVWLRQLQFOXGHSURIXVHVZHDWLQJ
WUHPEOLQJZHDNQHVVDQGORVVRIFRRUGLQDWLRQ$GGLWLRQDOV\PSWRPVPD\LQFOXGHKHDGDFKHWLQJOLQJLQWKH
KDQGVDQGIHHWSDOHQHVVGLIILFXOW\EUHDWKLQJLUUHJXODUKHDUWEHDWORVVRIDSSHWLWHQDXVHDDQGYRPLWLQJ7KH
VNLQLVJHQHUDOO\FRRODQGPRLVWIURPWKHHYDSRUDWLRQRIVZHDWWKHSXOVHUDWHLVUDSLGWREHDWVSHU
PLQXWHEORRGSUHVVXUHPD\EHORZDQGUHFWDOWHPSHUDWXUHLVXVXDOO\HOHYDWHG

6HSWHPEHU $730&73& 

&KDSWHU

+HDW6WURNH
 +HDWVWURNHLVWKH PRVWGDQJHURXVKHDWLQMXU\DQG UHVXOWV IURPWKHERG\¶VKHDWEDODQFHPHFKDQLVP
FROODSVLQJDQGWKHSULPDU\PHWKRGRIKHDWORVVFRROLQJE\HYDSRUDWLRQRIVZHDWVKXWWLQJGRZQ(DUO\VLJQV
RIKHDWVWURNHLQFOXGHKHDGDFKHGL]]LQHVVGHOLULXPPHQWDOFRQIXVLRQ ZHDNQHVVQDXVHDYRPLWLQJDQG
H[FHVVLYHZDUPWKKRZHYHUVZHDWLQJPD\RUPD\QRWEHDEVHQW7KHPRVWVLJQLILFDQWVLJQRIKHDWVWURNHLV
DERG\FRUHWHPSHUDWXUHRIRYHUGHJUHHV)DKUHQKHLW&HOVLXV ZLWKDUHFWDOWHPSHUDWXUHH[FHHGLQJ
GHJUHHV)DKUHQKHLW&HOVLXV$OWKRXJKWKHFDVXDOW\PD\ILUVWSURJUHVVWKURXJKWKHV\PSWRPVRI
KHDWFUDPSVRUKHDWH[KDXVWLRQWKHRQVHWRIKHDWVWURNHPD\RFFXUZLWKGUDPDWLFVXGGHQQHVV7KHYLFWLPRI
KHDWVWURNHRIWHQORVHFRQVFLRXVQHVVDQGVXIIHUFRQYXOVLRQVRUVHL]XUHV

'$1*(5
+HDWVWURNH LV D PHGLFDO HPHUJHQF\ 6HHN PHGLFDO DWWHQWLRQ
LPPHGLDWHO\

+HDW,QMXU\3UHYHQWLRQ
 +HDWLQMXULHVDUHQRWLQHYLWDEOHGXULQJMXQJOHRSHUDWLRQV3URDFWLYHOHDGHUVFDQWDNHVWHSVWRSUHYHQW
WKHLU6ROGLHUV0DULQHVIURPEHFRPLQJKHDWFDVXDOWLHV,QDGGLWLRQWRHGXFDWLQJ6ROGLHUV0DULQHVRQWKHULVN
IDFWRUV VLJQV V\PSWRPV DQG SUHYHQWLRQ RI KHDW LQMXULHV OHDGHUV PXVW PRQLWRU WKHLU VXERUGLQDWHV¶
SHUIRUPDQFHDQGDGMXVW ZRUNFRQGLWLRQVWRSURYLGHWURRSVZLWKDGHTXDWH UHVWDQGUHFRYHU\LQDFFRUGDQFH
ZLWKWKHKHDWFDWHJRU\

Risk Factor Recognition

 /HDGHUVUHFRJQL]HDQGDGGUHVVWKHIROORZLQJULVNIDFWRUVWKDWLQFUHDVHWKHOLNHOLKRRGRIKHDWLQMXU\
z +LJKKHDWFDWHJRU\HVSHFLDOO\RQVHYHUDOVHTXHQWLDOGD\V
z /DFNRIDGHTXDWHPHDOVRUIDLOXUHWRHDW
z 6WUHQXRXVWUDLQLQJRURSHUDWLRQVRYHUWKHFRXUVHRIVHYHUDOVHTXHQWLDOGD\V
z ([FHVVLYHKHDWH[SRVXUHDQGOLPLWHGUHFRYHU\WLPH
z /DFNRIDFFOLPDWL]DWLRQ
z /DFNRIVOHHS
z 3RRUILWQHVVXQDEOHWRUXQWZRPLOHVLQOHVVWKDQPLQXWHV
z ([FHVVLYHZHLJKWRUREHVLW\
z 7KH V\PSWRPVRILOOQHVVHV VXFKDVDFROGVRUHWKURDWORZJUDGH IHYHUQDXVHDYRPLWLQJDQG
GLDUUKHD
z 8VH RI PHGLFDWLRQV WKDW LQKLELW VZHDWLQJ VXFK DV DWURSLQH DQWLKLVWDPLQHV WUDQTXLOL]HUV FROG
PHGLFLQHVDQGDQWLGLDUUKHDOPHGLFDWLRQV
z 8VHRIDOFRKROWRWKHSRLQWRILQWR[LFDWLRQLQWKHSUHYLRXVKRXUV
z 3ULRUKLVWRU\RIKHDWLQMXU\DQ\KHDWVWURNHRUPRUHWKDQWZRHSLVRGHVRIKHDWH[KDXVWLRQ
z 6NLQGLVRUGHUVVXFKDVKHDWUDVKRUVXQEXUQWKDWSUHYHQWHIIHFWLYHVZHDWLQJ
z 6ROGLHUV0DULQHVRYHUWKHDJHRI
z 7LJKWFORWKLQJWKDWUHVWULFWVDLUIORZRYHUWKHERG\

 3URSHU K\GUDWLRQ LV YLWDO WR SUHYHQWLQJ KHDW LQMXULHV /HDGHUV HQVXUH DGHTXDWH TXDQWLWLHV RI SRWDEOH
ZDWHU DUH DYDLODEOH IRU 6ROGLHUV0DULQHV GXULQJ MXQJOH RSHUDWLRQV DQG PXVW HQFRXUDJH DQG PRQLWRU
FRQVXPSWLRQ 6HH SDUDJUDSKV  DQG  IRU LQIRUPDWLRQ RQ K\GUDWLRQ WHFKQLTXHV GXULQJ MXQJOH
RSHUDWLRQV
 6ROGLHUV0DULQHVWKDWH[SHQGPRUHFDORULHVWKDQWKH\FRQVXPHLQFUHDVHWKHLUULVNRIVXIIHULQJDKHDW
LQMXU\6ROGLHUV0DULQHVPD\ORVHWKHLUGHVLUHIRUIRRGLQKRWFOLPDWHV/HDGHUVHQVXUH6ROGLHUV0DULQHVHDW
ZLWKWKHKHDYLHUPHDORIWKHGD\VFKHGXOHGGXULQJWKHFRROHUKRXUV

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

 /HDGHUVXVHWKHZHWEXOEJOREHWHPSHUDWXUH:%*7LQGH[WRDFFXUDWHO\PHDVXUHWKHHQYLURQPHQWDO

ULVNIDFWRUVIRUKHDWLQMXU\DQGDGMXVWZRUNUHVWF\FOHVDQGZDWHUFRQVXPSWLRQDFFRUGLQJO\7KHZHWEXOE
PHDVXUHV WKH FRPELQHG HIIHFWV RI WKH VXQ DLU WHPSHUDWXUH DQG KXPLGLW\ DQG WKHQ FODVVLILHV WKLV GDWD
DFFRUGLQJWRRQHRIILYHKHDWFDWHJRULHV/HDGHUVWKHQDGMXVWZRUNWRUHVWUDWLRVDQGZDWHUFRQVXPSWLRQUDWHV
LQDFFRUGDQFHZLWKH[HUWLRQOHYHOVDQGWKHKHDWFDWHJRU\'HVSLWHWKLVIUDPHZRUNOHDGHUVPXVWUHFRJQL]HWKDW
QRQDFFOLPDWHG 6ROGLHUV0DULQHV ZLOO OLNHO\ UHTXLUH PRUH ZDWHU DQG PRUH IUHTXHQW UHVW SHULRGV WKDQ
DFFOLPDWHG6ROGLHUV0DULQHV 6HH$73IRUPRUHLQIRUPDWLRQRQKHDWLQMXU\SUHYHQWLRQWKH:%*7
LQGH[DQGRSHUDWLQJLQVWUXFWLRQVIRUWKH:%*7LQGH[NLW
 7R EH HIIHFWLYH WKH ZHW EXOE PXVW EH VHW XS LQ FRQGLWLRQV VLPLODU WR WKRVH XQGHU ZKLFK WKH
6ROGLHUV0DULQHV DUH RSHUDWLQJ DQG PXVW EH FKHFNHG KRXUO\ ZKHQ WKH DPELHQW WHPSHUDWXUH LV DERYH 
GHJUHHV )DKUHQKHLW  &HOVLXV 7DEOH  SUHVHQWV WKH ZRUNUHVW F\FOHV DQG UHFRPPHQGHG ZDWHU
FRQVXPSWLRQUDWHLQDFFRUGDQFHZLWKWKHKHDWFDWHJRU\DQGOHYHORIH[HUWLRQ
7DEOH:RUNUHVWDQGZDWHUFRQVXPSWLRQJXLGH

WBGT Easy work Moderate work Hard work

Heat index in Water Water Water
category degrees Work/rest Work/rest Work/rest
intake intake intake
Fahrenheit minutes minutes minutes
(qt/hr) (qt/hr) (qt/hr)
 ƒ±ƒ 1/ ò 1/ ô  ô
*UHHQ ƒ±ƒ 1/ ò  ô  
<HOORZ ƒ±ƒ 1/ ô  ô  
5HG ƒ±ƒ 1/ ô  ô  
%ODFN !ƒ      
Notes.
7KHZRUNUHVWWLPHVDQGIOXLGUHSODFHPHQWYROXPHVZLOOVXVWDLQSHUIRUPDQFHDQGK\GUDWLRQIRUDWOHDVWKRXUVRIZRUN
LQWKHVSHFLILHGKHDWFDWHJRU\,QGLYLGXDOZDWHUQHHGVZLOOYDU\“ óTWKU
&$87,21+RXUO\IOXLGLQWDNHVKRXOGQRWH[FHHG TXDUWV'DLO\IOXLGLQWDNHVKRXOGQRWH[FHHGTXDUWV
:HDULQJERG\DUPRULQKXPLGFOLPDWHVDGGVƒ)WRWKH:%*7LQGH[
:HDULQJFKHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDUSURWHFWLYHHQVHPEOHLQKXPLGFOLPDWHVDGGVƒ)WRWKH:%*7
LQGH[
ƒ) GHJUHHV)DKUHQKHLW 1/ QROLPLWWRZRUNWLPHSHUKRXU
! JUHDWHUWKDQ TWKRXU TXDUWSHUKRXU
“ SOXVRUPLQXV :%*7 ZHWEXOEJOREHWHPSHUDWXUH

Modifications
 ,Q DGGLWLRQ WR PRQLWRULQJ WKHLU 6ROGLHUV0DULQHV¶ SHUIRUPDQFH DQG WKH HQYLURQPHQWDO FRQGLWLRQV
OHDGHUVPD\PRGLI\ZRUNVFKHGXOHVWRPLWLJDWHWKHULVNRIKHDWLQMXULHV:RUNGRQHLQWKHKHDWRIWKHGD\
WDNHVPXFKORQJHUDQGLVPRUHIDWLJXLQJWKDQZRUNGRQHXQGHUUHODWLYHO\FRROHUFRQGLWLRQV:RUNLQJGXULQJ
FRROHUSHULRGVVXFKDVHDUO\PRUQLQJODWHHYHQLQJDQGQLJKWQRWRQO\LQFUHDVHVSURGXFWLYLW\DQGUHGXFHV
WKHOLNHOLKRRGRIKHDWLQMXULHVEXWLWPD\DOVRLPSURYHPRUDOH
 ,QDFFRUGDQFHZLWKORFDOSROLF\DQGRSHUDWLRQDOFRQGLWLRQVFRPPDQGHUVPD\PRGLI\WKHXQLIRUPWR
DFFRXQWIRUFKDQJHVLQWKHKHDWFDWHJRU\/HDGHUVDOVRUHFRJQL]HWKDWZHDULQJSHUVRQDOSURWHFWLYHHTXLSPHQW
NQRZQDV33(VXFKDVERG\DUPRULQFUHDVHVKHDWVWUHVVDQGDGGVILYHGHJUHHV)DKUHQKHLW&HOVLXV WR
WKH :%*7 LQGH[ 3HUIRUPLQJ HDV\ ZRUN ZKLOH ZHDULQJ FKHPLFDO ELRORJLFDO UDGLRORJLFDO DQG QXFOHDU
&%51SURWHFWLYH HTXLSPHQWDGGVWHQGHJUHHV)DKUHQKHLW &HOVLXV WRWKH :%*7ZKLOHSHUIRUPLQJ
PRGHUDWHRUKDUGZRUNLQ&%51SURWHFWLYHHTXLSPHQWDGGVGHJUHHV)DKUHQKHLW&HOVLXV WRWKH:%*7
LQGH[6XJJHVWHGXQLIRUPPRGLILFDWLRQVLQFOXGH
z +HDWFDWHJRULHVRQHDQGWZR²QRPRGLILFDWLRQV
z +HDWFDWHJRU\WKUHH²XQEORXVHWURXVHUOHJV
z +HDWFDWHJRULHVIRXUDQGILYH²

6HSWHPEHU $730&73& 

&KDSWHU

ƒ 8QEORXVHWURXVHUOHJVDQGXQEXFNOHZHEEHOWRUYHVW
ƒ 5HPRYHXQGHUVKLUWIURPXQLIRUPWRSRULIFRQGLWLRQVSHUPLWDQGELWLQJLQVHFWVDUHQRWSUHVHQW
UHPRYHXQLIRUPWRSGRZQWRXQGHUVKLUW
ƒ ,IFRQGLWLRQVSHUPLWUHPRYHKHOPHWV

Acclimatization
 /HDGHUVSUHYHQWKHDWLQMXULHVE\DOORFDWLQJWLPHDQGUHVRXUFHVIRUDFFOLPDWL]DWLRQ$SSUR[LPDWHO\RQH
ZHHNRIGDLO\KHDWH[SRVXUHLVQHFHVVDU\WRLQGXFHKHDWDFFOLPDWL]DWLRQKRZHYHU6ROGLHUV0DULQHVZKRDUH
XQXVXDOO\ VXVFHSWLEOH WR KHDW LQMXULHV UHTXLUH DGGLWLRQDO WLPH WR IXOO\ DFFOLPDWL]H +HDW DFFOLPDWL]DWLRQ
UHTXLUHVDPLQLPXPGDLO\KHDWH[SRVXUHRIDSSUR[LPDWHO\WZRKRXUVWKDWPD\EHFRQGXFWHGLQWZRRQHKRXU
H[SRVXUHV 7KHVH H[SRVXUHV VKRXOG FRQVLVW RI SK\VLFDO H[HUFLVH WKDW UHTXLUHV FDUGLRYDVFXODU VWUHVV QRW
VWUHQJWK WUDLQLQJ /HDGHUV JUDGXDOO\ LQFUHDVH WKH H[HUFLVH LQWHQVLW\ DQG GXUDWLRQ HDFK GD\ WR LQGXFH
DFFOLPDWL]DWLRQ
 $FFOLPDWL]DWLRQWRKHDWLVQHFHVVDU\WRSHUPLWWKHERG\WRUHDFKDQGPDLQWDLQHIILFLHQF\LQLWVFRROLQJ
SURFHVV+RZHYHUVLWXDWLRQVPD\DULVHZKHQWURRSVFDQQRWEHFRPHIXOO\DFFOLPDWL]HGEHIRUHOHDGHUVUHTXLUH
WKHPWRSHUIRUPKDUGZRUN:KHQWKLVKDSSHQVWURRSVFRQGXFWKDUGZRUNIROORZLQJJXLGHOLQHVHVWDEOLVKHG
LQWDEOHRQSDJH DQGOHDGHUVOLPLWKDUGZRUNWRFRROHUKRXUVDQGDOORZWURRSVWRUHVWIUHTXHQWO\

'(+<'5$7,21
 $OWKRXJKFDXVDOO\UHODWHGWRKHDWLQMXULHVGHK\GUDWLRQPD\RFFXUUHJDUGOHVVRIWHPSHUDWXUHKRZHYHU
6ROGLHUV0DULQHVRSHUDWLQJLQWKHKLJKKHDWDQGKXPLGLW\RIWKHMXQJOHKDYHDQLQFUHDVHGULVNIRUGHK\GUDWLRQ
,IWKH\GRQRWUHSODFHERGLO\IOXLGVORVWWKURXJKVZHDWGHK\GUDWLRQZLOORFFXU3RWDEOHGULQNLQJZDWHULVWKH
PRVW LPSRUWDQW QHHG IRU 6ROGLHUV0DULQHV LQ WKH MXQJOH :DWHU LV HDV\ WR ILQG LQ MXQJOH HQYLURQPHQWV
KRZHYHU 6ROGLHUV0DULQHV VKRXOG FRQVLGHU ZDWHU IURP QDWXUDO VRXUFHV DV FRQWDPLQDWHG 0DLQWDLQLQJ
DGHTXDWHSRWDEOHZDWHUVXSSOLHVLVFULWLFDO7URRSVFDQQRWSHUIRUPWRPD[LPXPHIILFLHQF\RQDGHFUHDVHG
ZDWHULQWDNH
 /HDGHUVHVWLPDWHKRZPXFKZDWHUWURRSVQHHGDQGZKHQWKH\ZLOOQHHGLW%HIRUHPLVVLRQVOHDGHUV
HQVXUH WURRSV SURSHUO\ K\GUDWH UHJXODUO\ 'XULQJ WKH PLVVLRQ HIIHFWLYH OHDGHUV WDNH VWHSV WR HQVXUH
6ROGLHUV0DULQHVUHSODFHWKH ZDWHUORVWWKURXJKVZHDW ZKLOH PRQLWRULQJ WKH ZDWHUVXSSO\WRSUHYHQWRYHU
FRQVXPSWLRQ $IWHU WKH PLVVLRQ OHDGHUV HQVXUH 6ROGLHUV0DULQHV UHSODFH ORVW IOXLGV WR VXSSRUW IXWXUH
RSHUDWLRQV:KHQWKH\KDYHOLPLWHGZDWHUVXSSO\OHDGHUVDGMXVWWKHLUSODQVLQDFFRUGDQFHZLWKWKHHVWDEOLVKHG
SULRULWLHVIRUZDWHUXVDJH
 0RQLWRULQJ K\GUDWLRQ UHTXLUHV EDODQFH OHDGHUV HQFRXUDJH K\GUDWLRQ ZKLOH GLVFRXUDJLQJ ZDVWHIXO
EHKDYLRU (IIHFWLYH OHDGHUV DOVR UHFRJQL]H WKDW 6ROGLHUV0DULQHV PD\ QHJOHFW SURSHU K\GUDWLRQ DQG KRDUG
ZDWHULIWKH\EHOLHYHLWLVDVFDUFHUHVRXUFH/HDGHUVPXVWEHDZDUHWKDWWKLUVW GRHVQRWDOZD\VDGHTXDWHO\
LQGLFDWHGHK\GUDWLRQ$GUHQDOLQHRUH[FLWHPHQWPD\SUHYHQW6ROGLHUV0DULQHVIURPUHDOL]LQJWKH\DUHWKLUVW\
RUGULQNLQJDGHTXDWHZDWHUEHIRUHWKH\EHFRPHGHK\GUDWHG

6\PSWRPVDQG(IIHFWVRI'HK\GUDWLRQ
 6\PSWRPV RI GHK\GUDWLRQ LQFOXGH GL]]LQHVV ZHDNQHVV RU IDWLJXH EOXUUHG YLVLRQ WKLUVW DQG GDUN
FRQFHQWUDWHG XULQH &KURQLF GHK\GUDWLRQ LQFUHDVHV WKH LQFLGHQFH RI VHYHUDO PHGLFDO SUREOHPV LQFOXGLQJ
FRQVWLSDWLRQNLGQH\VWRQHVDQGXULQDU\LQIHFWLRQV
 $SSUR[LPDWHO\SHUFHQWRIWKHKXPDQERG\LVIOXLG$OOFKHPLFDODFWLYLWLHVLQWKHERG\RFFXULQD
ZDWHUVROXWLRQ3URSHURUJDQIXQFWLRQUHTXLUHVZDWHUIRUUHPRYLQJZDVWHDQGUHJXODWLQJERG\WHPSHUDWXUH$
ORVVRIWZRTXDUWVRIERG\IOXLGSHUFHQWRIERG\ZHLJKWGHFUHDVHVHIILFLHQF\E\SHUFHQWDQGDORVVRI
IOXLGHTXDOWRSHUFHQWRIERG\ZHLJKWLVXVXDOO\IDWDO
 7KHERG\KDVDVPDOOUHVHUYHRIZDWHUDQGFDQORVHVRPHZLWKRXWDQ\HIIHFWV$IWHUDORVVRIDERXWWZR
TXDUWVZKLFKUHSUHVHQWVDERXWWRSHUFHQWRIERG\ZHLJKWHIIHFWLYHQHVVLVLPSDLUHG6ROGLHUV0DULQHV
PD\EHJLQWRVWXPEOHEHFRPHIDWLJXHGORVHWKHDELOLW\WRFRQFHQWUDWHDQGGHYHORSKHDGDFKHV7KLUVWZLOO
EHSUHVHQWEXWQRWRYHUSRZHULQJ8QOHVVZHOOWUDLQHGRUUHPLQGHGWRGULQNWURRSVPD\QRWUHSODFHWKHZDWHU
ORVV/HDGHUVDWDOOOHYHOVPXVWPRQLWRUWURRSVDQGHQIRUFHSURSHUK\GUDWLRQ

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

 $V GHK\GUDWLRQ FRQWLQXHV WKH HIIHFWV EHFRPH PRUH SURQRXQFHG 6ROGLHUV0DULQHV EHFRPH OHVV
HIIHFWLYHDQGPRUHOLNHO\WREHFRPHDKHDWFDVXDOW\6RPHWURRSVZLOOH[SHULHQFHKHDWFUDPSVRWKHUVZLOO
GHYHORSKHDWH[KDXVWLRQRUKHDWVWURNH+HDWFUDPSVDQGKHDWH[KDXVWLRQPD\EHHIIHFWLYHO\WUHDWHGLIFDXJKW
HDUO\+RZHYHUZLWKRXWSURPSWPHGLFDODWWHQWLRQKHDWVWURNHFDQSURYHIDWDO3UHYHQWLQJFDVXDOWLHVLVPXFK
HDVLHUWKDQWUHDWLQJDQGUHSODFLQJFDVXDOWLHV
 'HK\GUDWLRQ QXOOLILHV WKH EHQHILWV RI KHDW DFFOLPDWL]DWLRQ DQG SK\VLFDO ILWQHVV LW LQFUHDVHV WKH
VXVFHSWLELOLW\WRKHDWLQMXU\UHGXFHVWKHFDSDFLW\WRZRUNDQGGHFUHDVHVDSSHWLWHDQGDOHUWQHVV$ODFNRI
DOHUWQHVVFDQLQGLFDWHHDUO\VWDJHVRIGHK\GUDWLRQ
 'HK\GUDWLRQ LV RIWHQ DFFRPSDQLHG E\ WKH ORVV RI VDOW DQG RWKHU HOHFWURO\WHV QHFHVVDU\ IRU ERGLO\
IXQFWLRQVWKHPRUH6ROGLHUV0DULQHVVZHDWWKHPRUHVDOWWKH\ORVH7RPLWLJDWHWKLVWKHLVVXHGUDWLRQKDV
HQRXJKVDOWIRUD6ROGLHU0DULQHGULQNLQJXSWRIRXUTXDUWVRIZDWHUSHUGD\6ROGLHUV0DULQHVVKRXOGDWWHPSW
WRJHWWKHLUUHTXLUHGGDLO\VDOWLQWDNHWKURXJKPHDOVSURYLGHG$VWKH\GULQNDGGLWLRQDOOLTXLGVWRDFFRXQWIRU
ZDWHUORVWWKURXJKVZHDW6ROGLHUV0DULQHVHDWDFFRUGLQJO\WRUHSODFHWKHDFFRPSDQ\LQJVDOWORVW+RZHYHU
WKHDGPLQLVWUDWLRQRILQWUDYHQRXVVDOWVRUVDOLQHVKRXOGRQO\RFFXUXQGHUPHGLFDODXWKRULW\DQGVXSHUYLVLRQ
IRU6ROGLHUV0DULQHVVXIIHULQJIURPGHK\GUDWLRQRUKHDWLQMXU\6DOWLQH[FHVVRIERG\UHTXLUHPHQWVPD\
FDXVHLQFUHDVHGWKLUVWDQGFDQEHGDQJHURXV

'HK\GUDWLRQ3UHYHQWLRQ

:$51,1*
&RQVXPLQJRYHUTXDUWVRIZDWHULQDVLQJOHGD\PD\SXW
6ROGLHUV0DULQHVDWULVNIRUK\SRQDWUHPLDDSRWHQWLDOO\IDWDO
PHGLFDOHPHUJHQF\ZKHUHZDWHUFRQVXPSWLRQIOXVKHV
HOHFWURO\WHVIURPWKHERG\IDVWHUWKDQWKH\FDQEHUHSOHQLVKHG
+RXUO\IOXLGLQWDNHVKRXOGQRWH[FHHGTXDUWV

 :KLOHZRUNLQJLQKLJKMXQJOHWHPSHUDWXUHVD6ROGLHU0DULQHDWUHVWPD\ORVHDVPXFKDVKDOIDTXDUW
RIZDWHUSHUKRXUIURPVZHDWLQJ,I6ROGLHUV0DULQHVDUHZRUNLQJWKHLUZDWHUORVVWKURXJKVZHDWDQGWKH
VXEVHTXHQW UHTXLUHPHQW IRU UHSOHQLVKPHQW LQFUHDVHV LQ SURSRUWLRQ WR WKH DPRXQW RI ZRUN GRQH
6ROGLHUV0DULQHVPD\QRWDOZD\VGULQNWKHQHFHVVDU\DPRXQWRIZDWHUDQGZLOOQHHGWREHHQFRXUDJHGWR
GULQNPRUHWKDQWKH\WKLQNLVQHFHVVDU\7KLVLVSDUWLFXODUO\WUXHGXULQJDFFOLPDWL]DWLRQ$UWLILFLDOIODYRULQJ
RUHOHFWURO\WHSDFNHWVPD\EHDGGHGWRZDWHUWRHQKDQFHSDODWDELOLW\DQGHQFRXUDJHFRQVXPSWLRQ
 (IIHFWLYHOHDGHUVXQGHUVWDQGWKHLPSRUWDQFHRISURSHUK\GUDWLRQ7KHIROORZLQJFRQVLGHUDWLRQVDSSO\
WRSURSHUK\GUDWLRQGXULQJMXQJOHRSHUDWLRQV
z :DWHULVWKHNH\WRKHDOWKDQGVXUYLYDO
z &RQVLGHUZDWHUDVDWDFWLFDOZHDSRQ3URSHUK\GUDWLRQLQFUHDVHVLQGLYLGXDODQGWHDPHIIHFWLYHQHVV
z :HDULQJSHUVRQDOSURWHFWLYHHTXLSPHQWVXFKDVERG\DUPRUDGGVGHJUHHVWRWKH:%*7DQG
UHTXLUHVLQFUHDVHGZDWHULQWDNH6HH7DEOH RQSDJH IRUZDWHUFRQVXPSWLRQJXLGHOLQHV
z &%51SURWHFWLYHHTXLSPHQWDGGVGHJUHHVWRWKH:%*7DQGUHTXLUHVLQFUHDVHGZDWHULQWDNH
6HH 7DEOH RQSDJH IRUZDWHUFRQVXPSWLRQJXLGHOLQHV
z /DUJHULQGLYLGXDOVUHTXLUHPRUHZDWHU
z $V DFWLYLWLHV LQFUHDVH RU FRQGLWLRQV EHFRPH PRUH VHYHUH ZDWHU LQWDNH QHHGV LQFUHDVH LQ
DFFRUGDQFHZLWK7DEOHRQSDJH
z &DUERK\GUDWHDQGHOHFWURO\WHEHYHUDJHVDUHQRWUHTXLUHGEXWLIXVHGVKRXOGQRWEHWKHRQO\VRXUFH
RIZDWHU&DUERK\GUDWHDQGHOHFWURO\WHEHYHUDJHVPD\EHGLOXWHGZLWKZDWHUDWDUDWLR
z 'DUNXULQHPD\EHDQHDUO\LQGLFDWRURIGHK\GUDWLRQKDYH6ROGLHUV0DULQHVREVHUYHWKHFRORURI
WKHLUXULQHDQGUHSRUWDQ\VLJQLILFDQWFKDQJHVWROHDGHUVKLSDQGPHGLFDOSHUVRQQHO
z 6DOWORVVFDQEHUHSODFHGE\HDWLQJPHDOV
z 'LVHDVHVHVSHFLDOO\GLDUUKHDOGLVHDVHVZLOOFRPSOLFDWHDQGRIWHQSUHYHQWSURSHUK\GUDWLRQ

6HSWHPEHU $730&73& 

&KDSWHU

z &RQGLWLRQV WKDW LQFUHDVH WKH ULVN RI GHK\GUDWLRQ RU KHDW LQMXU\ LQFOXGH EXW DUH QRW OLPLWHG WR
IDWLJXHRUORVVRIVOHHSSUHYLRXVKHDWLQMXU\DQGSUHVFULSWLRQPHGLFDWLRQXVH0RGLI\DFWLYLWLHV
DQGFORVHO\PRQLWRU6ROGLHUV0DULQHVSURQHWRGHK\GUDWLRQRUKHDWLQMXU\
z 7KHILUVWVLJQVRI KHDWVWUHVVDQGUHGXFHGHIIHFWLYHQHVVVXFKDVDODFNRIVZHDWRUFKLOOVQHHG
WUHDWPHQW
z 5HGXFHGZRUNORDGVDQGWKHGXUDWLRQRISK\VLFDODFWLYLW\GXULQJWKHILUVWGD\VRIH[SRVXUHWRKHDW
DQGKXPLGLW\DQGDJUDGXDOLQFUHDVHLQZRUNORDGVDQGSK\VLFDODFWLYLW\IDFLOLWDWHVDFFOLPDWL]DWLRQ
 7RPDLQWDLQWKHWURRSV¶ZHOIDUHOHDGHUVHQVXUH6ROGLHUV0DULQHV²
z 5HVWLQWKHVKDGHZKHQSRVVLEOH
z &DUU\ DV PXFK ZDWHU DV SRVVLEOH ZKHQ DZD\ IURP DSSURYHG VRXUFHV RI GULQNLQJ ZDWHU
6ROGLHUV0DULQHVFDQOLYHORQJHUZLWKRXWIRRGWKDQZLWKRXWZDWHU
z 3URSHUO\K\GUDWHEHIRUHKDUGZRUNILOODOOSHUVRQDOK\GUDWLRQV\VWHPVSULRUWREHJLQQLQJZRUN
z 0RQLWRU LQGLYLGXDO FRQVXPSWLRQ OHYHOV DW WKH VTXDG OHYHO DW WKH SODWRRQ OHYHO PRQLWRU WKH
FRQVXPSWLRQUDWHRIHDFKVTXDG
z 7DNHEUHDNVDVRIWHQDVWKH KHDWFRQGLWLRQUHTXLUHVGXULQJEUHDNVUHPLQG6ROGLHUV0DULQHVWR
K\GUDWH
z .HHSZDWHUDVFRRODVSRVVLEOH
z 8VHWKHEXGG\V\VWHPWRHQFRXUDJHSURSHUK\GUDWLRQ

&$87,21
'DUN RU GLVFRORUHG XULQH LV QRW DOZD\V DQ DFFXUDWH LQGLFDWLRQ RI
GHK\GUDWLRQDQGPD\LQGLFDWHDPRUHVHULRXVPHGLFDOFRQGLWLRQVXFKDV
UKDEGRP\RO\VLV RU EORRG LQ WKH XULQH 6ROGLHUV0DULQHV VKRXOG VHHN
PHGLFDODWWHQWLRQLPPHGLDWHO\IRUEURZQRUGDUNFRORUHGXULQH

:DWHU6WRUDJH7HFKQLTXHV
 7URRSVSURWHFWZDWHUIURPHQHP\DFWLRQDVZHOODVIURPKHDWDQGFRQWDPLQDWLRQ([FHVVLYHPLQHUDOV
PLFURELRORJLFDO RUJDQLVPV RU RWKHU WR[LF VXEVWDQFHV PD\ FRQWDPLQDWH ZDWHU %HFDXVH RI WKLV
6ROGLHUV0DULQHVVKRXOGDYRLGFRQVXPLQJZDWHUQRW\HWWUHDWHGE\ZDWHUSXULILFDWLRQVSHFLDOLVWVRUPHGLFV
7URRSVDOVRDYRLGHQHP\ZDWHUVRXUFHVLQFDVHWKHHQHP\GHOLEHUDWHO\SRLVRQHGWKHP
 :DWHU SXULILFDWLRQ VSHFLDOLVWV RU PHGLFV WUHDW DQG GLVLQIHFW ZDWHU E\ DGGLQJ FKORULQH WR D OHYHO
SUHVFULEHGE\WKHFRPPDQGVXUJHRQ7KHFKORULQHQRWRQO\NLOOVWKHPLFURELRORJLFDORUJDQLVPVSUHVHQWLQWKH
ZDWHUEXWDOVRNLOOVRUJDQLVPVWKDWPLJKWJHWLQWRWKHZDWHUODWHU6HH$73IRUSURSHUFKORULQHGRVLQJ
WDEOHVDQGSRWDEOHZDWHUUHTXLUHPHQWV
 :DWHU SXULILFDWLRQ XQLW RSHUDWRUV DQG PHGLFV WUHDW DQG FKHFN ZDWHU IRU FRQWDPLQDWLRQ EHIRUH
GLVWULEXWLQJLWWRZDWHUSRLQWV+RZHYHUWKHVHFKHFNVGRQRWHQVXUHWKHZDWHUZLOOQRWEHFRPHFRQWDPLQDWHG
VRPHZKHUHLQWKHXQLWGLVWULEXWLRQV\VWHPEHIRUHD6ROGLHU0DULQHGULQNVLW7RSUHYHQWZDWHUIURPEHFRPLQJ
FRQWDPLQDWHGEHIRUHFRQVXPSWLRQXQLWVSURSHUO\VWRUHWUHDWHGZDWHUDQGSUHYHQWLWIURPPL[LQJZLWKQRQ
SRWDEOH ZDWHU VRXUFHV VXFK DV UDLQ ZDWHU 8QLWV RQO\ VWRUH ZDWHU LQ FOHDQ FRQWDLQHUV GHVLJQHG IRU ZDWHU
VWRUDJH 7KH EHVW FRQWDLQHUV IRU VPDOO TXDQWLWLHV RI ZDWHU ILYH JDOORQV RU OHVV DUH SODVWLF ZDWHU FDQV RU
FRROHUV7URRSVFDQVDIHO\FRQVXPHZDWHUSURSHUO\VWRUHGLQSODVWLFFDQVIRUXSWRKRXUVZKHUHDVZDWHU
VWRUHGLQPHWDOFRQWDLQHUVLVRQO\SRWDEOHIRUKRXUV
 +HDWFDQDOVRFRQWDPLQDWHZDWHU+HDWUHGXFHVWKHGLVLQIHFWLQJSRZHURIWKHFKORULQHGLVVROYHGLQWKH
ZDWHU ,I WKH DLU WHPSHUDWXUH H[FHHGV  GHJUHHV )DKUHQKHLW  &HOVLXV ZDWHU SXULILFDWLRQ VSHFLDOLVWV
PRQLWRU LWV WHPSHUDWXUH :KHQ WKH ZDWHU WHPSHUDWXUH H[FHHGV  GHJUHHV )DKUHQKHLW  &HOVLXV WKH\
FKDQJHWKHZDWHUWRSUHYHQWWKHJURZWKRIEDFWHULD8QLWVFDQUHGXFHKHDWDEVRUSWLRQE\VWRULQJZDWHUFDQV
DQGRWKHUFRQWDLQHUVLQWKHVKDGH)LHOGVDQLWDWLRQWHDPVVKRXOGKDYHWKHHTXLSPHQWDQGVXSSOLHVQHFHVVDU\
WRPHDVXUHDQGPDLQWDLQVDIHFKORULQHOHYHOVLQZDWHUVWRUDJHFRQWDLQHUV

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

 :DWHUEHFRPHVGLIILFXOWWRGULQNZKHQZDUPHUWKDQRUGHJUHHV)DKUHQKHLWRU&HOVLXV

,PSXULWLHVDQGIRXOWDVWHVDUHPRUHSURQRXQFHGDVZDWHUEHFRPHVZDUPHU:DWHUWDVWHVEHVWDQGLWLVHDVLHU
WRGULQNQHFHVVDU\TXDQWLWLHVRILWZKHQEHWZHHQDQGGHJUHHV)DKUHQKHLWDQG&HOVLXV
 7KH W\SH RI FRQWDLQHU XVHG WR VWRUH SRWDEOH ZDWHU DIIHFWV LWV WHPSHUDWXUH DQG SDODWDELOLW\ 6PDOO
XQLQVXODWHGZDWHUFRQWDLQHUVKHDWXSPRUHTXLFNO\WKDQODUJHULQVXODWHGFRQWDLQHUV :KHQVWRUHGLQGLUHFW
VXQLQXQLQVXODWHGJDOORQFDQVGHJUHHZDWHUFDQKHDWXSWRXQSDODWDEOHWHPSHUDWXUHVLQWKUHHWRIRXU
KRXUVRQDKRWJUHDWHUWKDQGHJUHHV)DKUHQKHLW&HOVLXVGD\+RZHYHUWKLVZLOOWDNHVHYHQWRHLJKW
KRXUVLINHSWLQWKHVKDGH,QVXODWHGJDOORQZDWHUWUDLOHUVLQRURXWRIWKHVXQZLOONHHSZDWHUFRROIRU
VHYHUDOGD\V8QLWVLGHQWLILHGWRFRQGXFWMXQJOHRSHUDWLRQVPD\DOVRXWLOL]HVXSSOHPHQWDOLWHPVVXFKDVD
PRELOHZDWHUFKLOOHUWRNHHSZDWHUSDODWDEOH:KHQWKH\ODFNVXFKHTXLSPHQW6ROGLHUV0DULQHVFDQXVHLFH
WRNHHSZDWHUFRRO,IWKH\XVHLFHLQJDOORQOLWHUZDWHUWUDLOHUVWKH\QHHGWRUHPRYHWKHLFHEHIRUH
PRYLQJWKHWUDLOHUWRSUHYHQWGDPDJHWRWKHLQQHUOLQLQJRIWKHVWRUDJHWDQN
 8QLWVQHHGWRPDNHVSHFLDODFFRPPRGDWLRQVIRUVXSSO\LQJZDWHUWRPRXQWHGIRUFHVRSHUDWLQJLQWKH
MXQJOH 0RXQWHG IRUFHV VKRXOG FDUU\ HQRXJK ZDWHU RQ D YHKLFOH WR ODVW WKH FUHZ XQWLO WKH QH[W SODQQHG
UHVXSSO\8QLWVILUPO\DWWDFKZDWHUVWRUDJHFRQWDLQHUVWRWKHYHKLFOHERG\WRSUHYHQWH[FHVVLYHYLEUDWLRQDQG
ZDWHU ORVV 7KH\ NHHS VWRUDJH FRQWDLQHUV LQ WKH VKDGH DQG LI SRVVLEOH H[SRVHG WR DQ DLU GUDIW )LQDOO\
6ROGLHUV0DULQHV VWRUH ZDWHU FRQWDLQHUVRQWKHLUYHKLFOHV ZKHUHWKH\DUHEHVWSURWHFWHGIURPSXQFWXUHE\
FRPEDWDQGHDVLO\GLVPRXQWHGLQWKHHYHQWRIDYHKLFOHHYDFXDWLRQ
 /HDGHUVHQVXUHWKHLUWURRSVQHYHUPLVWDNHQRQSRWDEOHZDWHUIRUGULQNLQJZDWHU:DWHUWKDWLVQRWILW
WRGULQNEXWLVQRWRWKHUZLVHGDQJHURXVPD\EHXVHGIRUK\JLHQHDQGRWKHUSHUVRQDOVDQLWDWLRQUHTXLUHPHQWV

:DWHU6XSSO\3ODQQLQJ
 :DWHU VXSSO\ GXULQJ MXQJOH RSHUDWLRQV UHTXLUHV GHOLEHUDWH SODQQLQJ :DWHU LV KHDY\ UHTXLUHV
VSHFLDOL]HGHTXLSPHQWWRVWRUHDQGGLVWULEXWHDQGPXVWEHWUDQVSRUWHGORQJGLVWDQFHV,WLVRIWHQUHTXLUHGLQ
ODUJH TXDQWLWLHV LV SHULVKDEOH DQG LV DEVROXWHO\ HVVHQWLDO WR PLVVLRQ DFFRPSOLVKPHQW 8QLWV KDYH VHYHUDO
VSHFLDOL]HG SLHFHV RI HTXLSPHQW DYDLODEOH WR RYHUFRPH WKHVH FKDOOHQJHV 7KH HTXLSPHQW¶V GHVLJQ DQG
DOORFDWLRQSHUPLWXQLWVWRPRYHDQGVWRUHWKHODUJHUWKDQQRUPDOYROXPHVRIZDWHUUHTXLUHGLQWKHMXQJOH
8QLWV FDQ DOVR KDYH WKLV HTXLSPHQW GHOLYHUHG E\ JURXQG DQG DLU WUDQVSRUWDWLRQ DLUGURS RU ORZ DOWLWXGH
SDUDFKXWHH[WUDFWLRQV\VWHP$LUWUDQVSRUWDWLRQZKLOHSRVVLEOHLVXVXDOO\OLPLWHGE\DLUFUDIWDYDLODELOLW\DQG
WKH ZHLJKW RI WKH TXDQWLW\ RI ZDWHU UHTXLUHG 8QLWV QRUPDOO\ XVH DLU WUDQVSRUWDWLRQ RQO\ LQ HPHUJHQF\
VLWXDWLRQVZKHQJURXQGWUDQVSRUWDWLRQLVQRWIHDVLEOH
 3ODQQLQJ ZDWHU UHTXLUHPHQWV IRU FHQWUDOL]HG VHUYLFH VXSSRUW IXQFWLRQV VKRZHU ODXQGU\ PHGLFDO
WUHDWPHQW PDLQWHQDQFH DQG FRQVWUXFWLRQ IDOOV XQGHU WKH VXSSRUWLQJ RUJDQL]DWLRQ¶V UHVSRQVLELOLW\ 7KH
ODUJHVWDQGPRVWFULWLFDOSODQQLQJIDFWRULVGULQNLQJZDWHU7KHTXDQWLW\UHTXLUHGGHSHQGVRQWKHHQYLURQPHQW
WKHQXPEHURIWURRSVDQGWKHLQWHQVLW\RILQGLYLGXDODFWLYLW\7KHIROORZLQJTXHVWLRQVJXLGHXQLWZDWHUVXSSO\
SODQQLQJ
z +RZPXFKZDWHULVQHHGHG"
z :KHUHLVLWQHHGHG"
z :KHQLVLWQHHGHG"
z +RZZLOOZDWHUJHWWRWKHXQLW"
z +RZGRHVZDWHUVXSSO\DIIHFWWKHPLVVLRQ"
z +RZGRHVWKHPLVVLRQDIIHFWZDWHUUHTXLUHPHQWV"
z :KDWPHDVXUHVQHHGWREHWDNHQWRHQVXUHZDWHULVSURSHUO\XVHG"

 8QLWVSURYLGHZDWHUWRVXSSRUWLPPHGLDWHDQGIXWXUHPLVVLRQV6RPHWLPHVHQRXJKZDWHUH[LVWVWR
IXOILOO DOO UHTXLUHPHQWV KRZHYHU ZKHQ VXSSOLHV DUH OLPLWHG DQG GHPDQG LV KLJK WKH FRPPDQGHU PXVW
SULRULWL]H ZDWHU DOORFDWLRQ E\ SXUSRVH 7KH ILUVW SULRULW\ PXVW JR WR WKH VXUYLYDO RI WKH IRUFH DQG
DFFRPSOLVKPHQWRIWKHLPPHGLDWHPLVVLRQ$JHQHUDOSULRULW\IRUZDWHUXVHLV²
z 3HUVRQQHOGULQNLQJRQO\
z 0HGLFDOWUHDWPHQW
z 9HKLFOHDQGHTXLSPHQWFRROLQJV\VWHPV
z +\JLHQHDQGSHUVRQDOVDQLWDWLRQ

6HSWHPEHU $730&73& 

&KDSWHU

z 'HFRQWDPLQDWLRQ
z )RRGSUHSDUDWLRQ
z /DXQGU\
z &RQVWUXFWLRQ

:DWHU5HTXLUHPHQWV
 /HDGHUV DQG WKHLU XQLWV FDQ GR VHYHUDO WKLQJV WR XVH ZDWHU WR WKHLU DGYDQWDJH )LUVW WKH\ HQVXUH
HQRXJKSRWDEOHZDWHULVDYDLODEOHIRUGULQNLQJDQGGHOLYHULWDVFORVHDVSRVVLEOHWRWKHSRLQWRIFRQVXPSWLRQ
7URRSVZRUNLQJLQWKHMXQJOHVKRXOGQRWKDYHWRZDONPRUHWKDQDVKRUWGLVWDQFHWRDZDWHUVRXUFH/HDGHUV
VKRXOGPDNHLWHDV\IRUWKHLU6ROGLHUV0DULQHVWRJHWZDWHU
 :KHQFDOFXODWLQJZDWHUUHTXLUHPHQWVIRUDQHQWLUHGD\OHDGHUVFRQVLGHURWKHUUHTXLUHPHQWVVXFKDV
VKDYLQJEUXVKLQJWHHWKDQGSHUVRQDOK\JLHQH,QDGGLWLRQWRGULQNLQJZDWHUWKHVHIXQFWLRQVUHTXLUHDOPRVW
WZRJDOORQVRIZDWHUSHU6ROGLHU0DULQHSHUGD\,IWKH XQLWSUHSDUHVLWVRZQUDWLRQVOHDGHUVSODQIRU
JDOORQSHUPHDOIRUIRRGSUHSDUDWLRQDQGNLWFKHQFOHDQXS $XQLWFDQUHXVHWKHZDWHUXVHGWRKHDWFRPEDW
UDWLRQVIRUZDVKLQJDQGVKDYLQJ
 :KHQFDOFXODWLQJGULQNLQJZDWHUUHTXLUHPHQWV OHDGHUVSODQWRXVHRQHTXDUWRIZDWHUSHUKRXURI
KDUGZRUNSHU6ROGLHU0DULQHLQFOXGLQJUHVWSHULRGVGXULQJWKHKHDWRIWKHGD\RUTXDUWRIZDWHUSHUKRXU
RIKDUGZRUNSHU6ROGLHU0DULQHLQWKHFRROHUSDUWVRIWKHGD\([SHULHQFHZLWKORFDOFRQGLWLRQVDQGWKHZRUN
SHUIRUPHGPD\FKDQJHWKHVHHVWLPDWHVKRZHYHUOHDGHUVVKRXOGPRQLWRUWKH:%*7DQGXVH7DEOHRQ
SDJHWRPRGLI\WKHZRUNUHVWF\FOHDQGZDWHUFRQVXPSWLRQ
 +RZ IDU WKH DYDLODEOH ZDWHU ZLOO VWUHWFK GHSHQGV XSRQ WKH FRPPDQGHU¶V HYDOXDWLRQ RI WKH ORFDO
VLWXDWLRQDQGPLVVLRQKRZWKHFRPPDQGHUVHWVSULRULWLHVIRUZDWHUXVHDQGKRZFDUHIXOWKHFRPPDQGHULV
LQ XVLQJ WKHLU OLPLWHG VXSSO\ ,I D OHDGHU FXWV ZDWHU XVH WR DEVROXWHO\ HVVHQWLDO UHTXLUHPHQWV OHDGHUV FDQ
WHPSRUDULO\ RYHUFRPH OLPLWHG ZDWHU VKRUWDJHV EXW VHYHUH VKRUWDJHV ZLOO OLPLW WKH XQLW¶V PRELOLW\ DQG
FDSDELOLW\:DWHUVKRUWDJHVPD\PDNHVRPHGD\OLJKWRSHUDWLRQVRUKDUGZRUNLQIHDVLEOHRUXQVXSSRUWDEOH
(DFKFRXUVHRIDFWLRQ&2$PXVWEHDQDO\]HGZLWKUHVSHFWWRZDWHUVXSSRUWUHTXLUHPHQWVDQGWKHFDSDFLW\
RIWURRSVWRVXVWDLQWKHLUHIIRUWVXQGHUVHYHUHKHDW
 :DWHUVXSSOLHVDUHHTXDOO\LPSRUWDQWWRWKHHQHP\7DNLQJDQGNHHSLQJZDWHUVRXUFHVRUGHQ\LQJ
RUGHVWUR\LQJHQHP\ZDWHUVXSSOLHVFDQFULWLFDOO\DOWHUWKHRSWLRQVDYDLODEOHWRWKHHQHP\

&2/'
 $OWKRXJKMXQJOHVDUHJHQHUDOO\KRWHQYLURQPHQWVH[FHVVLYHUDLQKLJKKXPLGLW\DQGWHPSHUDWXUH
IOXFWXDWLRQVEHWZHHQDOWLWXGHVDQGWLPHVRIGD\PD\FDXVH6ROGLHUV0DULQHVWREHFRPHFROG7KLVH[SRVXUH
DQGWKH UHVXOWLQJGLVFRPIRUW FDQGHJUDGHSHUIRUPDQFH7RSUHYHQWWKLVHIIHFWLYH OHDGHUVHQVXUH 6ROGLHUV
0DULQHVKDYHHQRXJKFORWKLQJDQGVKHOWHUWRNHHSZDUPDQGGU\-XQJOHFRQGLWLRQVDUHOLNHO\WRVRLOFORWKLQJ
PRUHUDSLGO\WKDQFRQGLWLRQVLQWHPSHUDWHRUFROGFOLPDWHVDQGDWDPLQLPXP6ROGLHUV0DULQHVVKRXOGKDYH
WZRVHWVRIXQLIRUPVDQGXQGHUJDUPHQWVIRUGDLO\RSHUDWLRQV7KHILUVWVHWLVZRUQGXULQJWKHGD\RUZKHQ
FRQGXFWLQJRSHUDWLRQVDQGDQRWKHUVHWLVZRUQZKHQUHFRYHULQJRUVOHHSLQJ7KHXQLIRUPDQGXQGHUJDUPHQWV
ZRUQGXULQJWKH GD\RUGXULQJRSHUDWLRQVVKRXOGEHUHPRYHGDQGGULHGZKLOHWKH6ROGLHU0DULQHUHVWVRU
VOHHSV/LNHZLVH6ROGLHUV0DULQHVVKRXOGKDYHWZRSDLUVRIERRWVWRDOORZDZHWRUVRLOHGSDLUWRGU\EHIRUH
LW PXVW EH ZRUQ DJDLQ /HDGHUV FRQGXFW SUHFRPEDW FKHFNV DQG SUHFRPEDW LQVSHFWLRQV WR HQVXUH
6ROGLHUV0DULQHVKDYHDGHTXDWHFORWKLQJIRURSHUDWLRQV

681/,*+7
 6XQOLJKWFDQSURGXFHH\HVWUDLQFDXVHH\HIDWLJXHDQGWHPSRUDULO\LPSDLUYLVLRQ6ROGLHUV0DULQHV
ZHDUGDUNJODVVHVRUJRJJOHVWKDWEORFNRUUHGXFHXOWUDYLROHWUD\VWRPLQLPL]HWKHQHJDWLYHHIIHFWVRIVXQOLJKW
RQWKHH\HV
 2YHUH[SRVXUH RI WKH VNLQ WR VXQOLJKW FDQ UHVXOW LQ VXQEXUQ 6XQEXUQ LV FKDUDFWHUL]HG E\ SDLQIXO
UHGGHQHGVNLQWKDWFDQUHVXOWLQEOLVWHULQJDQGPD\OHDGWRKHDWLQMXU\E\LQKLELWLQJWKHERG\¶V DELOLW\WRVZHDW
$OOSHUVRQQHODUHVXVFHSWLEOHWRVXQEXUQEXWGLIIHUHQWVNLQW\SHVKDYHYDU\LQJGHJUHHVRIVHQVLWLYLW\7URRSV
ZLWKIDLUVNLQIUHFNOHGVNLQUXGG\FRPSOH[LRQVRUUHGKDLUDUHPRUHVXVFHSWLEOHWRVXQEXUQWKDQRWKHUV

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

6ROGLHUV0DULQHVFDQZHDUVXQEORFNRUVXQVFUHHQWRSUHYHQWVXQEXUQRQH[SRVHGVNLQ3D\SDUWLFXODUDWWHQWLRQ
WRSURWHFWLQJWKHVNLQRIWKHIDFHDQGKDQGVDVWKHVHDUHDVDUHIUHTXHQWO\H[SRVHGWRSURORQJHGVXQOLJKW7R
SURWHFW IURPWKH VXQ6ROGLHUV0DULQHVRSHUDWLQJLQKRWDQGVXQQ\MXQJOHHQYLURQPHQWVVXFKDVVDYDQQD
VKRXOGUHPDLQLQXQLIRUPEXWZHDULWORRVHO\LQDFFRUGDQFHZLWKWKHKHDWFDWHJRU\,IOHDGHUVGRZQJUDGHWKH
XQLIRUP LQ DFFRUGDQFH ZLWK KHDW FDWHJRU\ FRQVLGHUDWLRQV WKH\ VKRXOG UHPRYH XQGHUJDUPHQWV EHIRUH
UHPRYLQJWKHXQLIRUPEORXVHGXULQJVXQQ\FRQGLWLRQV,I6ROGLHUV0DULQHVUHPRYHWKHXQLIRUPEORXVHWKHQ
WKH\VKRXOGDSSO\VXQEORFNRUVXQVFUHHQWRWKHH[SRVHGVNLQRIWKHDUPV

+($/7+&216,'(5$7,216
 'LVHDVHV FRPPRQ WR WKH MXQJOH LQFOXGH &KDJDV GLVHDVH GHQJXH IHYHU WU\SDQRVRPLDVLV
OHLVKPDQLDVLV OHSURV\ O\PSKDWLF ILODULDVLV PDODULD DQG RQFKRFHUFLDVLV 9LUXVHV SURWR]RD QHPDWRGHV
SDUDVLWLFZRUPVDQGEDFWHULDFDXVHWKHVHGLVHDVHVEXWWKHPRVWFRPPRQYHFWRUVIRUWKHVHGLVHDVHVDUHIOLHV
PRVTXLWRHV RU ZDWHU 3URSHU SUHYHQWLYH PHGLFLQH WHFKQLTXHV DQG SURFHGXUHV DUH FULWLFDO WR SURWHFWLQJ
6ROGLHUV0DULQHVIURPGLVHDVHVFRPPRQO\IRXQGLQWKHMXQJOH
 'LVHDVHVWKDWFDXVHGHK\GUDWLRQWKURXJKYRPLWLQJDQGGLDUUKHDLQFUHDVHWKHULVNRIKHDWLQMXU\)HYHU
DOVRPDNHV6ROGLHUV0DULQHVSURQHWRKHDWLQMXU\DQGFRPSOLFDWHVGLVWLQJXLVKLQJEHWZHHQKHDWLQMXU\DQG
GLVHDVH%HFDXVHRIWKLV6ROGLHUV0DULQHVZLWKHOHYDWHGWHPSHUDWXUHVYRPLWLQJDQGGLDUUKHDVKRXOGVHHN
PHGLFDOWUHDWPHQWDVVRRQDVSRVVLEOH/HDGHUVPRQLWRUWKHVHLQGLYLGXDOVDQGDGMXVWWKHZRUNUHVWF\FOHDV
FRQGLWLRQVSHUPLWWRSUHYHQWIXUWKHUFRPSOLFDWLRQVDQGHQDEOHUHFRYHU\

+\JLHQH
 3URSHU K\JLHQH QRW RQO\ PDLQWDLQV PRUDOH EXW LV WKH ILUVW OLQH RI GHIHQVH DJDLQVW GLVHDVH ,Q WKH
DEVHQFHRIVXIILFLHQWFOHDQZDWHUIRUK\JLHQH6ROGLHUV0DULQHVVKRXOGFOHDQWKHPVHOYHVZLWKVSRQJHEDWKV
VROXWLRQLPSUHJQDWHG SDGV D GDPS UDJ SRZGHU EDWKV RU HYHQ D GU\ FOHDQ FORWK 7URRSV DYRLG XVLQJ
XQWUHDWHGZDWHUIRUK\JLHQHRUZDVKLQJFORWKHVDVLWFDQVSUHDGGLVHDVH/HDGHUVHQVXUHWURRSVGLVSRVHRI
ZDVWHZDWHULQDQDSSURYHGDUHDWRSUHYHQWLQVHFWLQIHVWDWLRQ

'LHW
 6ROGLHUV0DULQHVFDQFRQWUDFWUDUHMXQJOHGLVHDVHVVXFKDV(ERODHLWKHUE\FRQVXPLQJEXVKPHDWRU
WKURXJKFORVHFRQWDFWZLWKLQIHFWHGSHUVRQV7RSUHYHQWFRQWUDFWLQJWKHVHLOOQHVVHV6ROGLHUV0DULQHVDYRLG
FRQVXPLQJEXVKPHDWVXFKDVPRQNH\VDQGEDWVDQGDYRLGFRQWDFWZLWKLQIHFWHGSHUVRQV7KH\VKRXOGDOVR
DYRLGYLVLWLQJOLYHDQLPDOPDUNHWVDQGNHHSWKHLUGLVWDQFHIURPOLYHVWRFN/LYHDQLPDOPDUNHWVDUHPDUNHWV
ZKHUHDQLPDOVDUHEURXJKWVROGDQGNLOOHGIRUVXEVHTXHQWFRQVXPSWLRQ

/DWULQHV
 $OWKRXJKFRPPRQLQDUHDV ZLWKSRRUVDQLWDWLRQHQWHULFGLVHDVHVFDQEHSUHYHQWHGWKURXJK JRRG
K\JLHQH SURSHU IRRG KDQGOLQJ DQG PHDO SUHSDUDWLRQ DQG WKH DSSURSULDWH VLWLQJ DQG FRQVWUXFWLRQ RI ILHOG
H[SHGLHQWODWULQHV(QJLQHHUVORFDWHODWULQHVZHOODZD\DQGGRZQZLQGRIELYRXDFVLWHVRUSDWUROEDVHV7URRSV
GLJDQGFRQVWUXFWLPSURYLVHGODWULQHV\VWHPVXVLQJUHDGLO\DYDLODEOHPDWHULDOVJHQHUDOO\ZKHQWKH\HVWDEOLVK
D QHZEDVHRIRSHUDWLRQV,IWKHXQLWUHPDLQVLQRQHORFDWLRQIRUXSWRWKUHHGD\VLWXVHVDVWUDGGOHWUHQFK
ODWULQH ,W PD\ EH VXLWDEOH LQ VDYDQQD RU RWKHU MXQJOHV ZLWK PRGHUDWHO\ ILUP VRLO DQG ORZHU ZDWHU WDEOHV
6WUDGGOHWUHQFKHVVKRXOGEHGXJDWOHDVWWZRDQGDKDOIIHHWPHWHUVGHHSWRSUHYHQWWKHPIURPRYHUIORZLQJ
ZLWKUDLQZDWHU7URRSVEXLOGDPRXQGODWULQHZKHQDVWUDGGOHWUHQFKODWULQHLVQRWIHDVLEOHGXHWRDKLJKZDWHU
WDEOHRUXQVWDEOHVRLO$PRXQGRIHDUWKZLWKDWRSRIDWOHDVWIHHWZLGHDQGIHHWORQJPHWHUVZLGH
E\PHWHUVORQJ LVIRUPHGDQGDIRXUVHDWODWULQHLVSODFHGRQWRS7URRSVGLJDSLWLQWRWKHPRXQGZKHQ
WKHPRXQGKDVUHDFKHGWKHGHVLUHGKHLJKW$GGLWLRQDOO\WURRSVFRYHUWKHODWULQHRSHQLQJZLWKDOLGWRSUHYHQW
WKHWUDQVPLVVLRQRIGLVHDVHE\IOLHV5HIHUWR$73IRUIXUWKHULQIRUPDWLRQRQZDVWHPDQDJHPHQW

:DWHU([SRVXUH
 7KH MXQJOH¶V H[FHVVLYH KHDW DQG KXPLGLW\ FDQ FDXVH IXQJDO LQIHFWLRQV RI WKH VNLQ VXFK DV 7LQHD
9HUVLFRORU7LQHD&UXULVMRFNLWFKDQG7LQHD3HGLVDWKOHWH¶VIRRW$OWKRXJKUDUHO\VHYHUHRQWKHLURZQ
IXQJDOLQIHFWLRQVPD\EHFRPSOLFDWHGE\KHDWUDVKVXQEXUQLPPHUVLRQV\QGURPHRURWKHUGHUPDWRORJLFDO

6HSWHPEHU $730&73& 

&KDSWHU

FRQGLWLRQVDQGFDQGHJUDGHSHUIRUPDQFH7RSUHYHQWIXQJDOLQIHFWLRQV6ROGLHUV0DULQHVUHJXODUO\ZDVKDUHDV
RIWKHERG\WKDWSURGXFHH[FHVVLYHVZHDWDQGFKDQJHXQGHUZHDUDQGVRFNVIUHTXHQWO\7KHXVHRIIRRWDQG
ERG\SRZGHUPD\DOVRSUHYHQWLQIHFWLRQ0HGLFVWUHDW6ROGLHUV0DULQHVVXIIHULQJIURPIXQJDOLQIHFWLRQVZLWK
DQWLIXQJDOPHGLFDWLRQDQGDOORZWKHDIIHFWHGDUHDWRGU\DVPXFKDVFRQGLWLRQVSHUPLW
 ,PPHUVLRQ V\QGURPH WUHQFK IRRW LV FRPPRQ LQ ZHW HQYLURQPHQWV DQG XVXDOO\ RFFXUV DIWHU
SURORQJHG H[SRVXUH WR ZDWHU JUHDWHU WKDQ  KRXUV ,QLWLDO V\PSWRPV LQFOXGH VZHOOLQJ UHGQHVV DQG D
QXPELQJ VHQVDWLRQ $V WKH FRQGLWLRQ SURJUHVVHV WKH WLVVXH PD\ EHFRPH SDOH 2IWHQ DFKHV LQFUHDVHG
VHQVLWLYLW\WRSDLQDQGLQIHFWLRQVDFFRPSDQ\LPPHUVLRQV\QGURPH3UHYHQWLYH PHDVXUHVLQFOXGHNHHSLQJ
IHHWFOHDQDQGGU\E\FKDQJLQJIURPZHWRUGDPSVRFNVWRGU\VRFNVDVVRRQDVSRVVLEOH6ROGLHUV0DULQHV
VKRXOGUHPRYHERRWVZKHQVOHHSLQJWRDOORZWKHIHHWDQGERRWVWRGU\,ISRVVLEOH6ROGLHUV0DULQHVDOWHUQDWH
ZHDULQJSDLUVRIERRWVWRDOORZWKHPWRGU\FRPSOHWHO\6ROGLHUV0DULQHVZKRGHYHORSLPPHUVLRQV\QGURPH
UHTXLUHLPPHGLDWHPHGLFDODWWHQWLRQ$IIHFWHGWLVVXHVVKRXOGE\FOHDQHGDQGGULHGJHQWO\WRSUHYHQWIXUWKHU
GDPDJH,ISRVVLEOHGRQRWDOORZWKH6ROGLHU0DULQHWRZDONRQWKHLQMXUHGH[WUHPLW\'RQRWPDVVDJHUXE
PRLVWHQRUH[SRVHWKHDIIHFWHGDUHDWRH[WUHPHKHDWRUORWLRQV'RQRWSRSEOLVWHUV
 6ROGLHUV0DULQHV PD\ H[SHULHQFH FKDILQJ DIWHU PDUFKLQJ RU SDWUROOLQJ LQ ZHW FORWKLQJ $SSO\LQJ
ERG\SRZGHURUSHWUROHXPMHOO\WRWKHVNLQPD\DOOHYLDWHWKHIULFWLRQWKDWFDXVHVFKDILQJ:HDULQJVSDQGH[
XQGHUJDUPHQWVPD\DOVRSUHYHQWFKDILQJLQWKHJURLQDQGLQQHUWKLJK

3UHYHQWLYH0HDVXUHV
 %RWKHQWHULFDQGLQVHFWERUQHGLVHDVHVFDQEHSUHYHQWHG/HDGHUVEUHDNWKHFKDLQRIWUDQVPLVVLRQ
IURP LQIHFWHG VRXUFHV WR VXVFHSWLEOH WURRSV E\ HIIHFWLYHO\ DSSO\LQJ WKH SUHYHQWLYH PHDVXUHV FRQWDLQHG LQ
$73DQG$730&53%0&53%
 $GGLWLRQDOSUHYHQWLYHPHDVXUHVIRUK\JLHQH
z %DWKHZLWKFOHDQWUHDWHGZDWHUDVRIWHQDVSUDFWLFDEOH
z 6KDNHRXWERRWVFORWKLQJDQGEHGGLQJEHIRUHXVLQJWKHP
z 6HSDUDWHPHVVIDFLOLWLHVDQGUHIXVHDUHDVIURPOLYLQJDQGVOHHSLQJDUHDVIRRGDQGJDUEDJHDWWUDFW
DQLPDOVDQGLQVHFWV
z 'RQRWKDQGOHLQVHFWVDUWKURSRGVVQDNHVRURWKHUDQLPDOV

 $GGLWLRQDOSUHYHQWLYHPHDVXUHVIRUGLHW
z 2EWDLQZDWHUIURPDSSURYHGZDWHUSRLQWVDQGVRXUFHV
z 3XULI\VXVSHFWZDWHUVRXUFHVLQDFFRUGDQFHZLWKWKHPHWKRGVSUHVFULEHGLQ$73
z 8VHSXULILHGZDWHUIRUKDQGZDVKLQJDQGIRRGSUHSDUDWLRQ
z ,IIRUFHGWRFROOHFWUDLQZDWHUZDLWWRGRVRXQWLOLWKDVUDLQHGIRUDWOHDVWPLQXWHV7KLVUHGXFHV
WKHULVNWKDWLPSXULWLHVIURPWKHMXQJOHFDQRS\DUHZDVKHGLQWRWKHZDWHUFRQWDLQHU:DWHULQWHQGHG
IRUSHUVRQDOFRQVXPSWLRQPXVWEHWUHDWHGZLWKLRGLQHSXULILFDWLRQWDEOHWV6HH$73IRU
PRUHLQIRUPDWLRQRQZDWHUSXULILFDWLRQWDEOHWV
z ,I SRVVLEOH SURFXUH DOO IRRG ZDWHU DQG LFH IURP DSSURYHG 86 PLOLWDU\ VRXUFHV LQVSHFWHG E\
YHWHULQDU\IRRGLQVSHFWRUV
z 'RQRWFRQVXPHEXVKPHDWVXFKDVPRQNH\VRUEDWV
z $YRLGFORVHFRQWDFWZLWKOLYHVWRFN
z $YRLGYLVLWLQJOLYHPDUNHWVRUPDUNHWVZKHUHOLYHDQLPDOVDUHEURXJKWDQGNLOOHGDIWHUEHLQJVROG
z ,IIRUFHGWRFRQVXPHORFDOO\ SURFXUHGIRRGHQVXUHLWLVFDUHIXOO\VWRUHGKDQGOHG ZDVKHGDQG
SUHSDUHG
z &RRNDOOIRRGVWKRURXJKO\
z :DVKDQGSHHOORFDOO\SURFXUHGIUXLWVDQGYHJHWDEOHVEHIRUHFRQVXPSWLRQ
z $YRLG ORFDO GDLU\ SURGXFWV /RFDO GDLU\ SURGXFWV DUH RIWHQ QRW SDVWHXUL]HG DQG PD\ FRQWDLQ
GDQJHURXVEDFWHULDVXFKDVVDOPRQHOOD(FROLOLVWHULDFDPS\OREDFWHUDQGRWKHUSDWKRJHQVWKDW
FDQFDXVHIRRGERUQHLOOQHVV
 $GGLWLRQDOSUHYHQWLYHPHDVXUHVIRUODWULQHV
z (VWDEOLVKKDQGZDVKLQJVWDWLRQVDWERWKODWULQHVDQGPHVVIDFLOLWLHV

 $730&73& 6HSWHPEHU

 7KH-XQJOH(QYLURQPHQW

z 'LVSRVH RI KXPDQ ZDVWH DQG JDUEDJH DV VSHFLILHG LQ $73  DQG DGGUHVVHG LQ
$730&53%0&53%
 $GGLWLRQDOSUHYHQWLYHPHDVXUHVIRUZDWHUH[SRVXUH
z :HDUFOHDQGU\ORRVHILWWLQJFORWKLQJZKHQHYHUSRVVLEOH
z 'RQRWVOHHSLQZHWVRLOHGRUGLUW\FORWKLQJ,QVWHDGWURRSVVKRXOGFDUU\DGU\VHWRIFORWKLQJMXVW
IRUVOHHSLQJ7KLVSUDFWLFHQRWRQO\SUHYHQWVIXQJDOEDFWHULDODQGLPPHUVLRQLQMXULHVEXWDOVR
SUHYHQWVFKLOOVDQGDOORZVWURRSVWRUHVWEHWWHU

Note.5HIHUWR$73IRUPRUHLQIRUPDWLRQRQILHOGVDQLWDWLRQWHFKQLTXHV6ROGLHUV0DULQHV
PD\DOVRUHIHUWR7%0('1$90('3$)0$1B,3IRUPRUHLQIRUPDWLRQ
RQHVWDEOLVKHGVWDQGDUGL]HGPLOLWDU\IRRGVDIHW\VWDQGDUGVFULWHULDSURFHGXUHVDQGUROHVIRUWKH
VDQLWDU\FRQWURODQGVXUYHLOODQFHRIIRRGWRPLWLJDWHULVNIDFWRUVNQRZQWRFDXVHIRRGERUQHLOOQHVV

(19,5210(17$/())(&7621(48,30(17
 -XQJOH KHDW DQG KXPLGLW\ DIIHFWV ERWK WURRSV DQG HTXLSPHQW &DQYDV LWHPV URW DQG UXEEHU
GHWHULRUDWHV PXFK IDVWHU WKDQ LQ PRUH WHPSHUDWH DUHDV %DWWHU\ OLIH LV VKRUWHU WKDQ QRUPDO DQG HOHFWULFDO
FRQQHFWLRQVFRUURGHTXLFNO\/HQVHVGLDOVDQGJDXJHVRIWHQEHFRPHIRJJHGZLWKLQWHUQDOPRLVWXUH

+($7
 $LUDQGIOXLGVH[SDQGDQGFRQWUDFWDFFRUGLQJWRDPELHQWWHPSHUDWXUHZKLOHH[WUHPHKHDWFDQLQFUHDVH
SUHVVXUHLQFORVHGSUHVVXUL]HGV\VWHPVDIIHFWLQJSHUIRUPDQFH+LJKWHPSHUDWXUHVPD\DOVRFDXVHKDORQILUH
VXSSUHVVLRQV\VWHPVWRGLVFKDUJHVSRQWDQHRXVO\6RPHW\SHVRIHTXLSPHQWKDYHWKHUPDOFXWRXWVWKDWRSHQ
FLUFXLW EUHDNHUV ZKHQHYHU HTXLSPHQW EHJLQV WR RYHUKHDW 7URRSV HQVXUH WKDW WKH ZRUNLQJ SUHVVXUH DQG
WHPSHUDWXUHVRIDOOHTXLSPHQWIDOOVZLWKLQVDIHW\OLPLWVLQDFFRUGDQFHZLWKWKHDSSURSULDWHWHFKQLFDOPDQXDO
70
 9HKLFOHFRROLQJDQGOXEULFDWLRQV\VWHPVDUHLQWHUGHSHQGHQWDQGDPDOIXQFWLRQE\RQHZLOOUDSLGO\
SODFHWKHRWKHUV\VWHPXQGHUVHYHUHVWUDLQ:KHQRSHUDWHGXQGHUH[WUHPHWHPSHUDWXUHVYHKLFOHFRROLQJDQG
OXEULFDWLRQV\VWHPVH[SHULHQFHH[FHVVLYHZHDUWKDWRIWHQUHVXOWVLQOHDNLQJJDVNHWVDQGVHDOV,IQRWPRQLWRUHG
DQG FRUUHFWHG WKHVH LVVXHV ZLOO OHDG WR HQJLQH IDLOXUH /HDGHUV PRQLWRU YHKLFOHV SURQH WR H[FHVVLYH
RYHUKHDWLQJDQGHQVXUHH[WUDFDUHLVDSSOLHGWRWKHLUPDLQWHQDQFH6ROGLHUV0DULQHVVKRXOGUHIHUWRDSSOLFDEOH
70V DQG OXEULFDWLRQ RUGHUV IRU WKH HTXLSPHQW WKH\ DUH RSHUDWLQJ 7KH IROORZLQJ FRQVLGHUDWLRQV HQVXUH
HQJLQHVGRQRWRYHUKHDW
z 3HUIRUPSUHYHQWLYHPDLQWHQDQFHFKHFNVDQGVHUYLFHVLQDFFRUGDQFHZLWKWKHDSSOLFDEOH70
z &KHFNRLOOHYHOVIUHTXHQWO\WRHQVXUHSURSHUOHYHOVDUHPDLQWDLQHGUHFRJQL]LQJWKDWWRRPXFKRU
WRROLWWOHRLOPD\GDPDJHWKHHQJLQH
z ,QVSHFWVHDOVDQGJDVNHWVIRUOHDNV
z 5HSRUWH[FHVVLYHRLOFRQVXPSWLRQWRPDLQWHQDQFHSHUVRQQHO
z .HHSUDGLDWRUVDQGDLUIORZDUHDVDURXQGHQJLQHVFOHDQDQGIUHHRIGHEULVDQGRWKHUREVWUXFWLRQV
z 7LJKWHQFRROLQJKRVHVLQDFFRUGDQFHZLWKWKHDSSOLFDEOH70&ODVV,,,OHDNVUHVXOWLQVLJQLILFDQW
IOXLGORVV
z 'RQRWUHPRYHKRRGVLGHSDQHOVIURPHQJLQHFRPSDUWPHQWVZKLOHWKHHQJLQHLVUXQQLQJDVWKLV
FDXVHVDLUWXUEXOHQFHDQGOHDGVWRLQHIIHFWLYHFRROLQJ
 %DWWHULHV GR QRW KROG WKHLU FKDUJH HIILFLHQWO\ LQ LQWHQVH KHDW 7KH IROORZLQJ DUH DGGLWLRQDO
FRQVLGHUDWLRQVIRUPDLQWDLQLQJEDWWHULHVLQLQWHQVHKHDW
z &KDQJHEDWWHU\VSHFLILFJUDYLW\WRDGMXVWWRMXQJOHFRQGLWLRQVVHHYHKLFOHWHFKQLFDOPDQXDOVIRU
GHWDLOV
z 0DLQWDLQ EDWWHU\ ZDWHU OHYHOV LQ DFFRUGDQFH ZLWK WKH DSSOLFDEOH WHFKQLFDO PDQXDO DQG FDUU\ D
UHVHUYHRIGLVWLOOHGZDWHU
z .HHSDLUYHQWVFOHDQRUYDSRUVPD\EXLOGXSSUHVVXUHDQGFDXVHWKHEDWWHU\WRH[SORGH

6HSWHPEHU $730&73& 

&KDSWHU

z 6HWYROWDJHUHJXODWRUVDVORZDVSUDFWLFDO
z ,QFUHDVHGU\EDWWHU\VXSSOLHVWRRIIVHWWKHKLJKDWWULWLRQUDWHFDXVHGE\KHDWH[SRVXUH
 (OHFWURQLFVHTXLSPHQWLVDGYHUVHO\DIIHFWHGE\KLJKWHPSHUDWXUHV5DGLRVFRPSXWHUVDQGQHWZRUN
FRPSRQHQWVRIWHQIDLOGXHWRRYHUKHDWLQJ)DLOXUHRIHOHFWURQLFFRPSRQHQWVFDQFDXVHDGYDQFHGZHDSRQV
FRPPXQLFDWLRQV V\VWHPV DLUFUDIW DQG YHKLFOHV WR EH QRQPLVVLRQ FDSDEOH 7KH IROORZLQJ VWHSV FDQ KHOS
SUHYHQWRYHUKHDWLQJRIHOHFWURQLFFRPSRQHQWV
z .HHSHOHFWURQLFVRXWRIGLUHFWVXQOLJKW
z (QVXUHWKDWDLUFDQFLUFXODWHIUHHO\DURXQGHOHFWURQLFFRPSRQHQWV
z 8WLOL]HORZSRZHUVHWWLQJVZKHQFRQGLWLRQVDOORZ
z .HHSYHQWVXQFRYHUHG

 +HDWFDXVHVDQRPDOLHVLQWKHHOHFWURPDJQHWLFVSHFWUXPWKDWVKRUWHQUDGLRUDQJHGXULQJWKHKRWWHU
KRXUVRIWKHGD\$WQLJKWUDQJHLPSURYHVEXWVWDWLFHOHFWULFLW\PD\FDXVHLQWHUIHUHQFH9HU\KLJKIUHTXHQF\
FRPPXQLFDWLRQV UDQJH FDQ GHFUHDVH E\ DV PXFK DV  SHUFHQW EHFDXVH RI KLJK WHPSHUDWXUHV )RU PRUH
LQIRUPDWLRQRQWKHHIIHFWVRIKHDWRQWDFWLFDOUDGLRRSHUDWLRQVUHIHUWR$73

+80,',7<$1':$7(5
 $OOMXQJOHVDUHKXPLGDQGH[SHULHQFHKLJKOHYHOVRIDQQXDOUDLQIDOO+HDWDQGKXPLGLW\FDXVHUXVWRQ
EDUHPHWDODQGPROGLQHQFORVHGVSDFHVVXFKDVRSWLFV8QLWVPXVWNHHSEDUHPHWDOVXUIDFHVRQHTXLSPHQW
QRWUHTXLUHGIRULPPHGLDWHXVHFOHDQDQGYHU\OLJKWO\OXEULFDWHG
 6WRUHRSWLFVLQGU\ORFDWLRQV7URRSVNHHSDLUFLUFXODWLQJDURXQGWKRVHRSWLFVLQXVHDQGSXUJHWKHP
DWIUHTXHQWLQWHUYDOV6ROGLHUV0DULQHVZDVKDLUFUDIWGDLO\SDUWLFXODUO\LIWKHUHLVVDOWLQWKHDLUXVLQJORZ
SUHVVXUHVSUD\VLQDFFRUGDQFHZLWKFRUURVLRQSUHYHQWLRQFRQWUROVGHWDLOHGLQWKHDSSOLFDEOH70
 (OHFWURQLFHTXLSPHQWLVDGYHUVHO\DIIHFWHGE\KLJKKXPLGLW\UDLQDQGZDWHU5DGLRVFRPSXWHUV
DQGQHWZRUNFRPSRQHQWVRIWHQIDLOZKHQH[SRVHGWRH[FHVVLYHPRLVWXUH(TXLSPHQWWKDWFRQIRUPVWRPLOLWDU\
VWDQGDUGVLVGHVLJQHGWRRSHUDWH XQGHUFHUWDLQOHYHOVRI PRLVWXUH6ROGLHUV0DULQHVFRQVXOW WKHDSSOLFDEOH
WHFKQLFDO PDQXDOV IRU VSHFLILF HTXLSPHQW GHVLJQ FKDUDFWHULVWLFV DQG SUHYHQWLYH PDLQWHQDQFH FKHFNV DQG
VHUYLFHVUHTXLUHPHQWV7RSUHYHQWHOHFWULFVKRFNDQGHTXLSPHQWIDLOXUHLQZHWRUVWRUP\FRQGLWLRQVWURRSV
JURXQG DOO HOHFWULFDO HTXLSPHQW LQ DFFRUGDQFH ZLWK WKH DSSOLFDEOH 70 (OHFWURQLF FRPSRQHQW IDLOXUH FDQ
FDXVHDGYDQFHGZHDSRQVFRPPXQLFDWLRQVV\VWHPVDLUFUDIWDQGYHKLFOHVWREHQRQPLVVLRQFDSDEOH7KH
IROORZLQJ VWHSV FDQ KHOS SUHYHQW WKH IDLOXUH RI HOHFWURQLF FRPSRQHQWV GXH WR ZHW FRQGLWLRQV FRPPRQO\
H[SHULHQFHGLQWKHMXQJOH
z 3URWHFWHOHFWURQLFVIURPYLVLEOHPRLVWXUH
z (QVXUHWKDWDLUFDQFLUFXODWHIUHHO\DURXQGHOHFWURQLFFRPSRQHQWV
z 'RQRWSRZHURQZDWHUORJJHGHOHFWURQLFFRPSRQHQWV$OORZWKHPWRIXOO\GU\SULRUWRSRZHULQJ
WKHPRQ
z (QVXUHFRPSRQHQWVDUHSURSHUO\JURXQGHGLIUHTXLUHG

81,)250$1'3(5621$/3527(&7,9((48,30(17
 3URSHUO\ ZRUQ XQLIRUPVSURWHFWWURRSVIURP VXQOLJKW QR[LRXV YHJHWDWLRQDQG ZLOGOLIH 7KHGXW\
XQLIRUPLVVXLWDEOHIRUMXQJOHRSHUDWLRQVVRORQJDVWKHFDPRXIODJHSDWWHUQFRQFHDOVWKH6ROGLHU0DULQHZLWK
WKH ORFDO HQYLURQPHQW 3URWHFWLYH H\HZHDU VKRXOG EH LVVXHG DQG ZRUQ DV SDUW RI WKH XQLIRUP :KHQ QRW
UHTXLUHG WR ZHDU D KHOPHW 6ROGLHU0DULQH ZHDUV D ZLGHEULPPHG KDW WR UHGXFH KHDW VWUHVV DQG LQFUHDVH
SURWHFWLRQIURPVXQOLJKWEHWWHUWKDQDSDWUROFDS6ROGLHUV0DULQHVVKRXOGZHDUWKHLUXQLIRUPVOHHYHVORRVH
EXWGRZQDQGIXOOOHQJWKWURXVHUVEORXVHGLQWRERRWV%RRWVGHWHULRUDWHTXLFNO\LQWKHMXQJOHVRXQLWVVKRXOG
FRRUGLQDWHZLWKWKHLUUHVSHFWLYHVXSSO\RIILFHUIRUUHJXODUH[FKDQJHV-XQJOHERRWVDUHSUHIHUDEOHWRVWDQGDUG
LVVXHERRWVDVWKHYHQWLODWLRQKROHVDOORZZDWHUWRGUDLQIURPWKHERRWDQGLQFUHDVHYHQWLODWLRQ
 6ROGLHUV0DULQHV VKRXOG DGMXVW FORWKLQJ OD\HUV WR DFFRXQW IRU FKDQJLQJ HQYLURQPHQWDO FRQGLWLRQV
DQGSK\VLFDOH[HUWLRQ7KH\ZHDUGU\FORWKLQJFORVHVWWRWKHVNLQWRFRPEDWLPPHUVLRQLQMXULHV

 $730&73& 6HSWHPEHU

 &KDSWHU
)RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

7KLV FKDSWHU SUHVHQWV WKH IXQGDPHQWDOV RI MXQJOH RSHUDWLRQV ZLWKLQ WKH ODUJHU
RSHUDWLRQDO FRQFHSW DQGIUDPHZRUN ,W IUDPHVMXQJOH RSHUDWLRQVZLWKLQ WKH PXOWLSOH
GRPDLQ EDWWOHILHOG DQG LGHQWLILHV FURVVGRPDLQ LVVXHV WKDW FRPPDQGHUV DGGUHVV IRU
VXFFHVVIXOLQWKLVKDUVKHQYLURQPHQW)LQDOO\LWRIIHUVWHFKQLTXHVIRUH[HFXWLQJMXQJOH
RSHUDWLRQV LQ DFFRUGDQFH ZLWK WKH XQGHUO\LQJ SULQFLSOHV DQG HQYLURQPHQWDO
FRQVLGHUDWLRQV

81'(567$1',1*-81*/(23(5$7,216
 -XQJOHRSHUDWLRQVHQFRPSDVV WKHUDQJHRI PLOLWDU\RSHUDWLRQVDQGVSDQWKH FRPSHWLWLRQ FRQWLQXXP
IURPRSHUDWLRQVWRVKDSHDQGSUHYHQWWRODUJHVFDOHFRPEDWDQGFRQVROLGDWLRQRIJDLQV7KH$UP\0DULQH
&RUSVSODQDQGH[HFXWHMXQJOHRSHUDWLRQVWRHLWKHUDFKLHYHRUFRQWULEXWHWRQDWLRQDORUFRPEDWDQWFRPPDQGHU
REMHFWLYHV7KHVHREMHFWLYHVPD\EHSK\VLFDOVXFKDVWKHVHL]XUHRUUHWHQWLRQRINH\WHUUDLQHQHP\FHQWULF
OLNHWKHGHIHDWRIDQRSSRVLQJIRUFHRUSRSXODWLRQFHQWULFDVLQKXPDQLWDULDQUHOLHIRSHUDWLRQV2SHUDWLRQV
LQWKHMXQJOHPD\IRUPSDUWRIDODUJHUFDPSDLJQRUVWDQGDVLQGHSHQGHQWDFWLRQV8QLWVFRQGXFWRSHUDWLRQV
VLPXOWDQHRXVO\ RU VHTXHQWLDOO\ DORQJ OLQHV RI HIIRUWOLQHV RI RSHUDWLRQ NQRZQ DV /22V 7KH MXQJOH
HQYLURQPHQWDIIHFWVWKHDFFRPSOLVKPHQWRIWKHPLVVLRQUHJDUGOHVVRIWKHW\SHDQGSXUSRVHRIWKHRSHUDWLRQ
$UP\0DULQH&RUSVOHDGHUVFRQGXFWLQJMXQJOHRSHUDWLRQV²
z 8QGHUVWDQGWKHMXQJOHHQYLURQPHQWWRGHWHUPLQHGHFLVLYHSRLQWV
z 8QGHUVWDQGKRZWKHMXQJOHDIIHFWVRSHUDWLRQDODQGPLVVLRQYDULDEOHV
z 5HWDLQWKHDELOLW\WRFRQYHUJHFRPEDWSRZHUDWGHFLVLYHSRLQWVGHVSLWHWKHGLVSHUVHGQDWXUHRI
MXQJOHRSHUDWLRQV
z &RQWLQXDOO\FRQVROLGDWHJDLQVHVVHQWLDOWRUHWDLQWKHLQLWLDWLYH
z 7DLORUWKHLUWDFWLFVWRWKHWHUUDLQDQGFRQGLWLRQVSUHYDOHQWLQWKHMXQJOH

 2SHUDWLRQVLQMXQJOHVWHQGWREHLVRODWHGDFWLRQVE\VPDOOIRUFHVEHFDXVHRIWKHGLIILFXOWLHVDVVRFLDWHG
ZLWK PRYLQJ DQG PDLQWDLQLQJ FRQWDFW EHWZHHQ XQLWV 'LYLVLRQV FDQ PRYH FURVVFRXQWU\ VORZO\ EXW
FRQFHQWUDWLQJ IRUFHV UHTXLUHV DJJUHVVLYH UHFRQQDLVVDQFH PHWLFXORXV LQWHOOLJHQFH FROOHFWLRQ DQG GHWDLOHG
FRRUGLQDWLRQ0RUHFRPPRQO\ODUJHIRUFHVRSHUDWHDORQJURDGVRUQDWXUDODYHQXHVRIDSSURDFK3DWUROOLQJ
DQG RWKHU VXUYHLOODQFH RSHUDWLRQV DUH HVSHFLDOO\ LPSRUWDQW WR HQVXUH WKH VHFXULW\ RI ODUJHU IRUFHV LQ WKH
MXQJOH¶VUHVWULFWHGDQGFORVHWHUUDLQ
 &RPPDQGHUVUHFRJQL]HWKDWWKHIDFWRUVLQIOXHQFLQJWKHLUDUHDRIRSHUDWLRQV$2PD\RULJLQDWHZHOO
EH\RQGLWVJHRJUDSKLFERXQGDULHV*LYHQWKHKDUVKHQYLURQPHQWMXQJOHVDUHRIWHQYLHZHGDVLVRODWHGDUHDV
KRZHYHU /2&V VXFK DV ULYHUV DQG LQIRUPDWLRQ QHWZRUNV OLNH WKH UDGLR DQG WKH LQWHUQHW IDFLOLWDWH WKH
H[FKDQJHRILGHDVDQGUHVRXUFHVLQHYHQWKHPRVWUHPRWHMXQJOHV)XUWKHUPRUHVRPHMXQJOHVFRQWDLQYLWDO
QDWXUDOUHVRXUFHVRYHUZKLFKJRYHUQPHQWVLQWHUQDWLRQDORUJDQL]DWLRQVDQGSULYDWHLQGXVWULHVYLHIRUFRQWURO
$VVXFKFRPPDQGHUVDVVHVVWKHHLJKWLQWHUUHODWHGRSHUDWLRQDOYDULDEOHVZKHQFRQGXFWLQJMXQJOHRSHUDWLRQV
2SHUDWLRQDO YDULDEOHV GHVFULEH QRW RQO\ WKH PLOLWDU\ DVSHFWV RI DQ RSHUDWLRQDO HQYLURQPHQW EXW DOVR WKH
SRSXODWLRQ¶V LQIOXHQFH RQ LW &RPPDQGHUV DVVHVV WKH SROLWLFDO PLOLWDU\ HFRQRPLF VRFLDO LQIRUPDWLRQ
LQIUDVWUXFWXUHSK\VLFDOHQYLURQPHQWDQGWLPHNQRZQDV30(6,,37FKDUDFWHULVWLFVRIWKH$2DQGWKHLU
HIIHFWVRQIULHQGO\HQHP\DQGQHXWUDODFWRUVLQWKHUHJLRQ$QDFFXUDWH XQGHUVWDQGLQJRIWKHRSHUDWLRQDO
HQYLURQPHQW HQDEOHV FRPPDQGHUV WR EXLOG DQ RSHUDWLRQDO IUDPHZRUN IRU FRKHVLYH DQG HIIHFWLYH MXQJOH
RSHUDWLRQV

6HSWHPEHU $730&73& 

&KDSWHU

23(5$7,21$/)5$0(:25.
 $QRSHUDWLRQDOIUDPHZRUNLVDFRJQLWLYHWRROWKDWFRPPDQGHUVDQGVWDIIVXVHWRYLVXDOL]HDQGGHVFULEH
WKH DSSOLFDWLRQ RI FRPEDW SRZHU LQ WLPH VSDFH SXUSRVH DQG UHVRXUFHV DV WKH\ GHYHORS WKH FRQFHSW RI
RSHUDWLRQV 7KH RSHUDWLRQDO IUDPHZRUNV RUJDQL]H IRUFHV JHRJUDSKLFDOO\ GHHS FORVH UHDU VXSSRUW DQG
FRQVROLGDWLRQ DUHDV E\ SXUSRVH GHFLVLYH VKDSLQJ DQG VXVWDLQLQJ RSHUDWLRQV DQG E\ HIIRUW PDLQ DQG
VXSSRUWLQJ&RPPDQGHUVPD\XVHDQ\FRPELQDWLRQRIWKHVHRSHUDWLRQDOIUDPHZRUNVDVWKH\GHYHORSWKHLU
FRQFHSWRIRSHUDWLRQV+RZHYHUKLJKHUHFKHORQVW\SLFDOO\HPSOR\DPRUHUREXVWRSHUDWLRQDOIUDPHZRUNWKDW
GHSLFWV FRPEDW SRZHU JHRJUDSKLFDOO\ E\ SXUSRVH DQG E\ HIIRUW 7KHUH LV QR FKDQJH WR WKH RSHUDWLRQDO
IUDPHZRUNIRUMXQJOHRSHUDWLRQV
 &RPPDQGHUV DVVLJQ VXERUGLQDWHV UHVSRQVLELOLW\ IRU SDUWLFXODU DUHDV WR PDLQWDLQ XQLW\ RI FRPPDQG
FUHDWHIUHHGRPRIDFWLRQJHQHUDWHUDSLGWHPSRDQGEHVWXVHDYDLODEOHFRPEDWSRZHU6RPHFDSDELOLWLHVOLNH
F\EHUVSDFHDQGLQIRUPDWLRQRSHUDWLRQVFDQSRWHQWLDOO\JHQHUDWHHIIHFWVIDURXWVLGHDVVLJQHG$2VIRUWDFWLFDO
XQLWV $V VXFK UHWDLQLQJ WKH FDSDELOLWLHV DQG WKH DXWKRULW\ IRU WKHLU HPSOR\PHQW DW KLJKHU HFKHORQV IUHHV
VXERUGLQDWHOHDGHUVWRIRFXVRQWKHGHPDQGLQJDVSHFWVRIFORVHFRPEDW

121/,1($523(5$7,216
 %HFDXVH MXQJOH RSHUDWLRQV IRFXV RQ WKH HQHP\ DQG DUH OHVV FRQFHUQHG ZLWK WHUUDLQ WKH\ DUH RIWHQ
QRQOLQHDULQQDWXUH&KDUDFWHUL]HGE\DFRPELQDWLRQRIGLVSHUVLRQDQGFRQFHQWUDWLRQMXQJOHRSHUDWLRQVRIWHQ
FRQVLVWRIVPDOOXQLWVFRQGXFWLQJUHFRQQDLVVDQFHRSHUDWLRQVDQGPRYHPHQWVWRFRQWDFWWRORFDWHDQGIL[WKH
HQHP\)RUFHVDUHWKHQFRQFHQWUDWHGDWGHFLVLYHSRLQWVWRGHVWUR\WKHHQHP\DQGH[SORLWLQLWLDOVXFFHVV,Q
QRQOLQHDURSHUDWLRQVIRUFHVRULHQWRQREMHFWLYHVZLWKRXWJHRJUDSKLFUHIHUHQFHWRDGMDFHQWIRUFHV1RQOLQHDU
RSHUDWLRQV W\SLFDOO\ IRFXV RQ FUHDWLQJ VSHFLILF HIIHFWV RQ PXOWLSOH GHFLVLYH SRLQWV 1RQOLQHDU RSHUDWLRQV
HPSKDVL]HVLPXOWDQHRXVRSHUDWLRQVDORQJPXOWLSOHOLQHVRIHIIRUWOLQHVRIRSHUDWLRQIURPVHOHFWHGEDVHV
 $OWKRXJKMXQJOHRSHUDWLRQVDUHRIWHQQRQOLQHDU$2VPD\EHHLWKHUFRQWLJXRXVRUQRQFRQWLJXRXV,Q
FRQWLJXRXV$2VDGMDFHQWVXERUGLQDWHFRPPDQG¶V$2VVKDUHDJHRJUDSKLFERXQGDU\,QQRQFRQWLJXRXV$2V
VXERUGLQDWHFRPPDQGVDUHDVVLJQHG$2VWKDWGRQRWVKDUHJHRJUDSKLFERXQGDULHV7KHKLJKHUKHDGTXDUWHUV
UHWDLQVUHVSRQVLELOLW\IRUWKHSRUWLRQRILWVRSHUDWLRQDODUHDQRWDVVLJQHGWRVXERUGLQDWHXQLWV

'((3 &/26( 5($5 6833257$1'&2162/,'$7,21$5($6

 :LWKLQWKHLUDVVLJQHG$2VFRPPDQGHUVGHVLJQDWHGHHSFORVHUHDUVXSSRUWDQGFRQVROLGDWLRQDUHDV
WR GHVFULEH WKH SK\VLFDO DUUDQJHPHQW RI IRUFHV LQ WLPH VSDFH DQG IRFXV &RPPDQGHUV W\SLFDOO\ XVH WKLV
RSHUDWLRQDOIUDPHZRUNDWWKHGLYLVLRQDQGDERYHDVORZHUHFKHORQVODFNWKHFDSDELOLWLHVWRFRQWURORSHUDWLRQV
LQDGHHSDUHD

'HHS$UHD
 $ deep areaLVZKHUHWKHFRPPDQGHUVHWVFRQGLWLRQVIRUIXWXUHVXFFHVVLQFORVHFRPEDW$'3
2SHUDWLRQVLQWKHGHHSDUHDLQYROYHHIIRUWVWRSUHYHQWXQFRPPLWWHGRURXWRIFRQWDFWHQHP\PDQHXYHUIRUFHV
IURPEHLQJFRPPLWWHGLQDFRKHUHQWPDQQHURUSUHYHQWLQJHQHP\HQDEOLQJFDSDELOLWLHVVXFKDVILUHVDQGDLU
GHIHQVH IURP FUHDWLQJ HIIHFWV LQ WKH FORVH DUHD $ FRPPDQGHU¶V GHHS DUHD JHQHUDOO\ H[WHQGV EH\RQG
VXERUGLQDWH XQLW ERXQGDULHV DQG WR WKH OLPLWV RI WKH FRPPDQGHU¶V GHVLJQDWHG $2 &RPPDQGHUV XVH
RSHUDWLRQVLQWKHGHHSDUHDWRVHWFRQGLWLRQVIRUVXFFHVVLQWKHFORVHDUHDRUWRHVWDEOLVKFRQGLWLRQVIRUIXWXUH
RSHUDWLRQV,QGRLQJVRGHHSRSHUDWLRQVFDQHQDEOHIULHQGO\IRUFHVWRFKRRVHWKHWLPHSODFHDQGPHWKRGIRU
FORVHRSHUDWLRQV2SHUDWLRQVLQWKHGHHSDUHDKHOSORFDWHWKHHQHP\UHVWULFWWKHLUIUHHGRPRIDFWLRQGLVUXSW
WKHFRKHUHQFHDQGWHPSRRIWKHLURSHUDWLRQVLQWHUGLFWWKHLUVXSSOLHVLVRODWHRUGHVWUR\WKHLUIRUFHVGLVUXSW
WKHPRYHPHQWRIRSHUDWLRQDOUHVHUYHVRUSUHYHQWDQHQHP\IURPHPSOR\LQJORQJUDQJHFDQQRQURFNHWRU
PLVVLOH ILUHV 3ODQQLQJ IRU RSHUDWLRQV LQ WKH GHHS DUHD LQFOXGHV FRQVLGHUDWLRQV IRU LQIRUPDWLRQ FROOHFWLRQ
DLUVSDFH FRQWURO MRLQW ILUHV REVWDFOH HPSODFHPHQW PDQHXYHU DLU DQG JURXQG VSHFLDO RSHUDWLRQV DQG
LQIRUPDWLRQRSHUDWLRQV
 7KH MXQJOH¶V RIWHQ GHQVH IROLDJH DQG UHVWULFWHG WHUUDLQ LQKLELWV WKH XVH DQG HIIHFWV RI FRQYHQWLRQDO
FDSDELOLWLHVLQWKHGHHSDUHD,QIRUPDWLRQFROOHFWLRQMRLQWILUHVREVWDFOHHPSODFHPHQWDQGPDQHXYHUPD\
SURYHSDUWLFXODUO\FKDOOHQJLQJ,QWKHVHFLUFXPVWDQFHVFRPPDQGHUVPD\HPSOR\VSHFLDORSHUDWLRQVIRUFHV

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

VSHFLDOO\ WUDLQHG DQG HTXLSSHG IRU MXQJOH RSHUDWLRQV +RZHYHU WKH ODFN RI FOHDUHG DUHDV IRU GURS ]RQHV
NQRZQDV'=VRUODQGLQJ]RQHVNQRZQDV /=VPD\OLPLWWKHXVHRIDYLDWLRQDVVHWVIRUDLUDVVDXOWDQG
UHVXSSO\RSHUDWLRQVLQWKHGHHSDUHD

&ORVH$UHD
 7KHclose areaLVWKHSRUWLRQRIWKHFRPPDQGHU¶VDUHDRIRSHUDWLRQVZKHUHWKHPDMRULW\RIVXERUGLQDWH
PDQHXYHUIRUFHVFRQGXFWFORVHFRPEDW$'3&RPPDQGHUVSODQWRFRQGXFWGHFLVLYHRSHUDWLRQVXVLQJ
PDQHXYHUDQGILUHVLQWKHFORVHDUHDDQGWKH\SRVLWLRQPRVWRIWKHPDQHXYHUIRUFHZLWKLQLW:LWKLQWKHFORVH
DUHDRQHXQLWPD\FRQGXFWWKHGHFLVLYHRSHUDWLRQZKLOHRWKHUVFRQGXFWVKDSLQJRSHUDWLRQVWRIL[DVSHFLILF
HQHP\IRUPDWLRQRUUHGXFHUHPQDQWVRIE\SDVVHGRUGHIHDWHGIRUFHV2SHUDWLRQVLQWKHFORVHDUHDUHTXLUH
VSHHGDQGPRELOLW\WRUDSLGO\FRQFHQWUDWHRYHUZKHOPLQJFRPEDWSRZHUDWWKHULJKWWLPHDQGSODFHWRH[SORLW
VXFFHVV3ODQQLQJIRURSHUDWLRQVLQWKHFORVHDUHDLQFOXGHVILUHFRQWUROPHDVXUHVPRYHPHQWFRQWUROPHDVXUHV
DQGREVWDFOHHPSODFHPHQW2SHUDWLRQVLQWKHFORVHDUHDDUHLQKHUHQWO\OHWKDOEHFDXVHWKH\RIWHQLQYROYHGLUHFW
ILUHHQJDJHPHQWVZLWKHQHP\IRUFHVVHHNLQJWRPDVVGLUHFWLQGLUHFWDQGDHULDOILUHVDJDLQVWIULHQGO\IRUFHV
'LVPRXQWHGIRUFHVDUHEHVWVXLWHGIRUPRYHPHQWDQGPDQHXYHUGXULQJFORVHDUHDRSHUDWLRQVLQGHQVHMXQJOH
WHUUDLQ ZKLOH PRXQWHG IRUFHV DUH EHVW VXLWHG IRU WKH RSHQ VDYDQQD (DFK W\SH RI IRUFH SUHVHQWV XQLTXH
VXVWDLQPHQWFKDOOHQJHVUHTXLULQJH[WHQVLYHSODQQLQJ

5HDU$UHD
 7KH UHDU DUHD LV WKDW DUHD ZLWKLQ D XQLW¶V $2 H[WHQGLQJ IRUZDUG IURP LWV UHDU ERXQGDU\ WR WKH UHDU
ERXQGDU\RIWKHDUHDDVVLJQHGWRWKHQH[WORZHUOHYHORIFRPPDQG7KHSUHSRQGHUDQFHRIIRUFHVLQWKHUHDU
DUHDVXSSRUWDQGVXVWDLQIRUFHVLQWKHFORVHDUHD*LYHQWKHWHQGHQF\IRUMXQJOHRSHUDWLRQVWRRFFXURQQRQ
FRQWLJXRXV EDWWOHILHOGV FRPPDQGHUV UHFRJQL]H WKDW FORVH FRPEDW LV SRVVLEOH LQ WKH UHDU DUHD 7KLV LV
HVSHFLDOO\WUXH ZKHQIDFLQJLQVXUJHQWVRUJXHUULOODVDVWKHVHIRUFHVPD\LQILOWUDWHWKHUHDUDUHDWRFRQGXFW
UDLGVRURWKHUDWWDFNVDJDLQVWYXOQHUDEOHLQIUDVWUXFWXUHDQGVXSSRUWXQLWV5HDURSHUDWLRQVLQFOXGH²
z 6HFXULW\
z 6XVWDLQPHQW
z 7HUUDLQPDQDJHPHQW
z 0RYHPHQWFRQWURO
z 3URWHFWLRQ
z ,QIUDVWUXFWXUHGHYHORSPHQW

 0DULQH&RUSVIRUPDWLRQVXWLOL]HUHDUDUHDRSHUDWLRQVWRHQKDQFHDIRUFH¶VIUHHGRPRIDFWLRQDQGH[WHQG
WKH IRUFH¶VRSHUDWLRQUHDFKERWKLQWLPHDQGVSDFH5HDUDUHDRSHUDWLRQVDUHV\QRQ\PRXV ZLWKVXVWDLQLQJ
DFWLRQVWKDWVHHNXQLQWHUUXSWHG VXSSRUWWRWKHIRUFH7KHSULPDU\ IRFXVRIUHDUDUHDRSHUDWLRQVGXULQJWKH
RIIHQVLYHLVWRPDLQWDLQPRPHQWXPDQGSUHYHQWFXOPLQDWLQJSRLQWV

6XSSRUW$UHD
 &RPPDQGHUV GHVLJQDWH VXSSRUW DUHDV ZLWKLQ WKH UHDU DUHD 7KH support area LV WKH SRUWLRQ RI WKH
FRPPDQGHU¶VDUHDRIRSHUDWLRQVWKDWLVGHVLJQDWHGWRIDFLOLWDWHWKHSRVLWLRQLQJHPSOR\PHQWDQGSURWHFWLRQ
RI EDVH VXVWDLQPHQW DVVHWV UHTXLUHG WR VXVWDLQ HQDEOH DQG FRQWURO RSHUDWLRQV $'3  0RVW RI WKH
HFKHORQ¶VVXVWDLQPHQWFDSDELOLWLHVRULJLQDWH LQWKLVDUHDDQGLQFOXGH /2&VDQGEDVHFOXVWHUV7KHVXSSRUW
DUHD LV JHQHUDOO\ DVVLJQHG WR D PDQHXYHU HQKDQFHPHQW EULJDGH WKDW SURYLGHV DUHD VHFXULW\ WHUUDLQ
PDQDJHPHQWPRYHPHQWFRQWUROPRELOLW\VXSSRUWDQGFOHDUDQFHRIILUHV7KLVDOORZVVXVWDLQPHQWXQLWVWR
IRFXVRQWKHLUSULPDU\IXQFWLRQV7KHFKDOOHQJHVRIVXSSRUWLQJMXQJOHRSHUDWLRQVPDNHVSURWHFWLQJWKHVXSSRUW
DUHDYLWDOO\LPSRUWDQW

&RQVROLGDWLRQ$UHD
 7KH consolidation area LV WKH SRUWLRQ RI WKH ODQG FRPPDQGHU¶V DUHD RI RSHUDWLRQV WKDW PD\ EH
GHVLJQDWHGWRIDFLOLWDWHIUHHGRPRIDFWLRQFRQVROLGDWHJDLQVWKURXJKGHFLVLYHDFWLRQDQGVHWFRQGLWLRQVWR
WUDQVLWLRQWKHDUHDRIRSHUDWLRQVWRIROORZRQIRUFHVRURWKHUOHJLWLPDWHDXWKRULWLHV$'3&RPPDQGHUV
HVWDEOLVKDFRQVROLGDWLRQDUHDSDUWLFXODUO\LQWKHRIIHQVHDVWKHIULHQGO\IRUFHJDLQVWHUULWRU\WRH[SORLWWDFWLFDO
VXFFHVVZKLOHHQDEOLQJIUHHGRPRIDFWLRQIRUIRUFHVRSHUDWLQJLQWKHRWKHUDUHDV&RQVROLGDWLRQDUHDVLQMXQJOH

6HSWHPEHU $730&73& 

&KDSWHU

HQYLURQPHQWV DUH RIWHQ QRQFRQWLJXRXV VLQFH SRSXODWLRQ FHQWHUV WHQG WR EH UHODWLYHO\ LVRODWHG IURP RQH
DQRWKHUFRQVROLGDWLQJJDLQVLQVSDUVHO\SRSXODWHGDUHDVUHTXLUHVIRUFHVZLWKVLJQLILFDQWPRELOLW\

'(&,6,9( 6+$3,1*$1'6867$,1,1*23(5$7,216
 7KHGHFLVLYHVKDSLQJDQGVXVWDLQLQJIUDPHZRUNOHQGVLWVHOIWRDEURDGFRQFHSWXDORULHQWDWLRQRIWKH
RSHUDWLRQ :KHQ XVHG ZLWK WKH RWKHU IUDPHZRUNV LW SURYLGHV D JUHDWHU XQGHUVWDQGLQJ RI WKH PLVVLRQ¶V
SXUSRVH $ decisive operation LV WKH RSHUDWLRQ WKDW GLUHFWO\ DFFRPSOLVKHV WKH PLVVLRQ $'3  ,W
GHWHUPLQHVWKHRXWFRPHRIDPDMRURSHUDWLRQEDWWOHRUHQJDJHPHQW7KHGHFLVLYHRSHUDWLRQLVWKHIRFDOSRLQW
DURXQG ZKLFK FRPPDQGHUV GHVLJQ DQ HQWLUH RSHUDWLRQ &RPPDQGHUV W\SLFDOO\ LGHQWLI\ D VLQJOH GHFLVLYH
RSHUDWLRQEXWPRUHWKDQRQHVXERUGLQDWHXQLWPD\SOD\DUROHLQDGHFLVLYHRSHUDWLRQ
 $ shaping operationLVDQRSHUDWLRQDWDQ\HFKHORQWKDWFUHDWHVDQGSUHVHUYHVFRQGLWLRQVIRUVXFFHVV
RI WKH GHFLVLYH RSHUDWLRQ WKURXJK HIIHFWV RQ WKH HQHP\ RWKHU DFWRUV DQG WKH WHUUDLQ $'3  6KDSLQJ
RSHUDWLRQVPD\RFFXUWKURXJKRXWDQ$2DQGLQYROYHDQ\FRPELQDWLRQRIIRUFHVDQGFDSDELOLWLHV6KDSLQJ
RSHUDWLRQVVHWFRQGLWLRQVIRUWKHVXFFHVVRIWKHGHFLVLYHRSHUDWLRQE\SUHSDULQJDQGLVRODWLQJWKHEDWWOHILHOG
GLVUXSWLQJWKHHQHP\¶VDELOLW\WRV\QFKURQL]HIRUFHVGHFHLYLQJWKHHQHP\DQGGHOD\LQJWKHHQWU\RIHQHP\
UHLQIRUFHPHQWVWRWKHPDLQEDWWOHDUHD7KH\DOVRVHWFRQGLWLRQVIRUWKHVXFFHVVRIVXERUGLQDWHHFKHORQVE\
HQDEOLQJWKHLUIUHHGRPRIDFWLRQ2SHUDWLRQVDFURVVPXOWLSOHGRPDLQVVXFKDVVSDFHDQGF\EHUVSDFHDQG
RSHUDWLRQVWRLQIRUPRUGHFHLYH D WDUJHWDXGLHQFHIXUWKHU LOOXVWUDWHVKDSLQJRSHUDWLRQV *LYHQWKHOLPLWHG
UHVRXUFHVDQGKDUVKHQYLURQPHQWVKDSLQJRSHUDWLRQVH[HFXWHGRQDQRQFRQWLJXRXVMXQJOHEDWWOHILHOGPD\
VHHNWRLVRODWHWKHHQHP\IURPLWVVRXUFHVRIVXVWDLQPHQWRUEDVHRIVXSSRUW&RPPDQGHUVPD\GHVLJQDWH
PRUHWKDQRQHVKDSLQJRSHUDWLRQ
 $ sustaining operationLVDQRSHUDWLRQDWDQ\HFKHORQWKDWHQDEOHVWKHGHFLVLYHRSHUDWLRQRUVKDSLQJ
RSHUDWLRQV E\ JHQHUDWLQJ DQG PDLQWDLQLQJ FRPEDW SRZHU $'3  6XVWDLQLQJ RSHUDWLRQV GLIIHU IURP
GHFLVLYHDQGVKDSLQJRSHUDWLRQVLQWKDWWKH\IRFXVLQWHUQDOO\RQIULHQGO\IRUFHVUDWKHUWKDQH[WHUQDOO\RQ
HQHP\IRUFHVRUWKHHQYLURQPHQW:KLOHVXVWDLQLQJRSHUDWLRQVDUHLQVHSDUDEOHIURPGHFLVLYHDQGVKDSLQJ
RSHUDWLRQVWKH\DUHQRWXVXDOO\GHFLVLYHWKHPVHOYHV6XVWDLQLQJRSHUDWLRQVRFFXUWKURXJKRXWDQ$2QRWMXVW
ZLWKLQ D VXSSRUW DUHD 6XVWDLQLQJ RSHUDWLRQV GHWHUPLQH WHPSR DQG RSHUDWLRQDO UHDFK ZKLOH DOVR VHWWLQJ
FRQGLWLRQVIRUIXWXUHRSHUDWLRQV,QDGHTXDWHVXVWDLQLQJRSHUDWLRQVRUDVKLIWLQWKHSULRULW\IRUVXVWDLQPHQW
ZLOOUHVXOWLQIRUFHVUHDFKLQJWKHLUFXOPLQDWLQJSRLQW7KHculminating pointLVWKHSRLQWDWZKLFKDIRUFHQR
ORQJHUKDVWKHFDSDELOLW\WRFRQWLQXHLWVIRUPRIRSHUDWLRQVRIIHQVHRUGHIHQVH-38QLWVLQGDQJHURI
SUHPDWXUHO\UHDFKLQJWKHLUFXOPLQDWLQJSRLQWPD\UHTXLUHDQRSHUDWLRQDOSDXVHWRDOORZDGGLWLRQDOVXVWDLQLQJ
RSHUDWLRQV
 6XVWDLQLQJRSHUDWLRQVLQWKHMXQJOHPD\UHTXLUHXQLTXHPHWKRGVDQGPHDQVRIVXSSRUWLQJWKHIRUFH
:LWK OLPLWHG /2&V DQG UHVWULFWHG WHUUDLQ DHULDO UHVXSSO\ PD\ EH WKH RQO\ PHWKRG RI VXVWDLQPHQW GXULQJ
HPHUJHQFLHV 3ODQQHUV PXVW LPSURYLVH DQG DGDSW PRGHV RI VXVWDLQPHQW WR WKRVH EHVW VXLWHG WR WKH
HQYLURQPHQW7KLVPD\UHTXLUHRSHUDWLRQDOFRQWUDFWVXSSRUWRURWKHUORFDOO\GHULYHGPHWKRGVRIVXVWDLQPHQW
VXFKDVWKHXVHRISDFNDQLPDOVRUSRUWHUV

0$,1$1'6833257,1*())2576
 &RPPDQGHUV GHVLJQDWH PDLQ DQG VXSSRUWLQJ HIIRUWV WR HVWDEOLVK FOHDU SULRULWLHV RI VXSSRUW DQG
UHVRXUFHVDPRQJVXERUGLQDWHXQLWV7KHmain effortLVDGHVLJQDWHGVXERUGLQDWHXQLWZKRVHPLVVLRQDWDJLYHQ
SRLQW LQ WLPH LV PRVW FULWLFDO WR RYHUDOO PLVVLRQ VXFFHVV $'3  7KH main effort LV WKH GHVLJQDWHG
VXERUGLQDWHXQLWZKRVHPLVVLRQDWDJLYHQSRLQWLQWLPHLVPRVWFULWLFDOWRRYHUDOOPLVVLRQVXFFHVV,WLVXVXDOO\
ZHLJKWHGZLWKWKHSUHSRQGHUDQFHRIFRPEDWSRZHUDQGLVGLUHFWHGDJDLQVWDFHQWHURIJUDYLW\WKURXJKDFULWLFDO
YXOQHUDELOLW\ 0&53  7\SLFDOO\ FRPPDQGHUV VKLIW WKH PDLQ HIIRUW RQH RU PRUH WLPHV GXULQJ
H[HFXWLRQ 'HVLJQDWLQJ D PDLQ HIIRUW WHPSRUDULO\ SULRULWL]HV UHVRXUFH DOORFDWLRQ :KHQ FRPPDQGHUV
GHVLJQDWHDXQLWDVWKHPDLQHIIRUWLWUHFHLYHVSULRULW\RIVXSSRUWDQGUHVRXUFHVLQRUGHUWRPD[LPL]HFRPEDW
SRZHU&RPPDQGHUVHVWDEOLVKFOHDUSULRULWLHVRIVXSSRUWDQGWKH\VKLIWUHVRXUFHVDQGSULRULWLHVWRWKHPDLQ
HIIRUWDVFLUFXPVWDQFHVDQGWKHFRPPDQGHU¶VLQWHQWUHTXLUH
 &RPPDQGHUVPD\GHVLJQDWHDXQLWFRQGXFWLQJDVKDSLQJRSHUDWLRQDVWKHPDLQHIIRUWXQWLOWKHGHFLVLYH
RSHUDWLRQFRPPHQFHV+RZHYHUWKHXQLWZLWKSULPDU\UHVSRQVLELOLW\IRUWKHGHFLVLYHRSHUDWLRQWKHQEHFRPHV
WKHPDLQHIIRUWXSRQWKHH[HFXWLRQRIWKHGHFLVLYHRSHUDWLRQ

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

 $ supporting effortLVDGHVLJQDWHGVXERUGLQDWH XQLWZLWKDPLVVLRQWKDWVXSSRUWVWKHVXFFHVVRIWKH

PDLQHIIRUW$'3$ supporting effortLVGHVLJQDWHGVXERUGLQDWHXQLWVZKRVHPLVVLRQLVGHVLJQHGWR
GLUHFWO\FRQWULEXWHWRWKHVXFFHVVRIWKHPDLQHIIRUW0&53&RPPDQGHUVUHVRXUFHVXSSRUWLQJHIIRUWV
ZLWKWKHPLQLPXPDVVHWVQHFHVVDU\WRDFFRPSOLVKWKHPLVVLRQ

08/7,3/('20$,123(5$7,216,1$1(;7(1'('-81*/(
%$77/(),(/'
 -XQJOHRSHUDWLRQVDUHLQIOXHQFHGE\DQGFRQGXFWHGDFURVVWKHDLUODQGPDULWLPHVSDFHDQGF\EHUVSDFH
GRPDLQVDQGWKHLQIRUPDWLRQHQYLURQPHQW&RPPDQGHUVDQGVWDIIVPXVWXQGHUVWDQGWKHLQWHUUHODWHGQDWXUH
RIWKHVHGRPDLQVDQGERWKIULHQGO\DQGHQHP\FDSDELOLWLHVLQHDFK)URPWKLVXQGHUVWDQGLQJFRPPDQGHUV
FDQEHWWHULGHQWLI\ZLQGRZVRIRSSRUWXQLW\WRFRQYHUJHFDSDELOLWLHVIRU WKHEHVWHIIHFW6LQFHPDQ\FURVV
GRPDLQFDSDELOLWLHVDUHQRWRUJDQLFWR$UP\0DULQH&RUSVIRUFHVFRPPDQGHUVDQGVWDIIVSODQFRRUGLQDWH
DQGLQWHJUDWHMRLQWDQGRWKHUXQLILHGDFWLRQSDUWQHUFDSDELOLWLHVDFURVVWKHUDQJHRIPLOLWDU\RSHUDWLRQV

63$&('20$,1
 7KHspace domainLVWKHDUHDDERYHWKHDOWLWXGHZKHUHDWPRVSKHULFHIIHFWVRQDLUERUQHREMHFWVEHFRPH
QHJOLJLEOH-3$UP\0DULQH&RUSVIRUFHVUHO\RQVSDFHEDVHGFDSDELOLWLHVIRULQIRUPDWLRQFROOHFWLRQ
HDUO\ZDUQLQJHQYLURQPHQWDOPRQLWRULQJVDWHOOLWHEDVHGFRPPXQLFDWLRQVDQGSRVLWLRQLQJQDYLJDWLRQDQG
WLPLQJ $FWLYLWLHV LQ WKH VSDFH GRPDLQ HQDEOH IUHHGRP RI DFWLRQ IRU RSHUDWLRQV LQ DOO RWKHU GRPDLQV DQG
RSHUDWLRQVLQRWKHUGRPDLQVFDQFUHDWHHIIHFWVLQDQGWKURXJKWKHVSDFHGRPDLQ(IIHFWLYHPXOWLSOHGRPDLQ
RSHUDWLRQV UHTXLUH FRPPDQGHUV XQGHUVWDQG WKH YDULRXV VSDFHEDVHG FDSDELOLWLHV DQG FRRUGLQDWH DFWLYLWLHV
DPRQJLQYROYHGDJHQFLHVDQGRUJDQL]DWLRQV
 'HFOLQLQJFRVWVUDSLGLQIRUPDWLRQH[FKDQJHDQGWKHHDVHRIJOREDOWUDGHKDYHOHGWRWKHSUROLIHUDWLRQ
RIDGYDQFHGVSDFHWHFKQRORJLHV$GYHUVDULHVDUPHGZLWKVSDFHFDSDELOLWLHVFDQSRWHQWLDOO\GLVUXSWRUGHIHDW
$UP\0DULQH&RUSVIRUFHVRSHUDWLQJLQRWKHUGRPDLQV$GHJUDGHGVSDFHRSHUDWLRQDOHQYLURQPHQWLQKLELWV
LGHQWLI\LQJDQGWUDFNLQJHQHP\IRUFHV,QWKHMXQJOHWKLVHTXDWHVWRDORVVLQHIILFLHQF\DQGWHPSRVLQFHXQLWV
KDYHWRGHYRWHPRUHUHVRXUFHVWRUHFRQQDLVVDQFHDQGVXUYHLOODQFH7KHUHVWULFWHGWHUUDLQDQGGHQVHIROLDJH
SUHVHQWLQPDQ\MXQJOHVDOVRLQKLELWVVLJQDOV¶OLQHRIVLJKWFRPPXQLFDWLRQVOHDYLQJXQLWVWRUHO\RQVSDFH
EDVHGDVVHWVIRUFRPPDQGFRQWURODQGFRPPXQLFDWLRQV:LWKRXWWKLVDELOLW\XQLWVPD\ORVHWKHLUIUHHGRP
RIDFWLRQDQGFRPPDQGHUVPD\EHXQDEOHWRV\QFKURQL]HRSHUDWLRQVLQWLPHDQGVSDFHDWWKHVSHHGQHFHVVDU\
IRU VXFFHVVIXO PXOWLSOH GRPDLQ RSHUDWLRQV 7KH ORVV RI SRVLWLRQLQJ QDYLJDWLRQ DQG WLPLQJ VLJQLILFDQWO\
KLQGHUV RSHUDWLRQV LQ MXQJOHV ZKHUH OLPLWHG YLVLELOLW\ IHZ ODQGPDUNV DQG FRPSOLFDWHG WHUUDLQ PDNH
QDYLJDWLRQGLIILFXOW
 (IIHFWLYHFRPPDQGHUVOHYHUDJH VSDFHEDVHGFDSDELOLWLHVWRFRQYHUJHHIIHFWVDWWKHDSSURSULDWHWLPH
DQGORFDWLRQGXULQJMXQJOHRSHUDWLRQV7KH\UHFRJQL]HZKDWUHVRXUFHVDUHDYDLODEOHZKRKROGVWKHUHOHYDQW
DXWKRULWLHV IRU XVH DQG ZKDW FRRUGLQDWLRQ OHDGHUV QHHG WR GUDZ RQ WKHVH FURVVGRPDLQ FDSDELOLWLHV
&RPPDQGHUVLQFRUSRUDWHVSDFHEDVHGHIIHFWVGXULQJSODQQLQJEXWHQVXUHDQRSHUDWLRQ¶VVXFFHVVGRHVQRWUHVW
VROHO\RQWKHP&RPPDQGHUVFRQGXFWLQJMXQJOHRSHUDWLRQVDOVRSUHSDUHIRUDGHQLHGGHJUDGHGDQGGLVUXSWHG
VSDFH RSHUDWLRQDO HQYLURQPHQW 7KH\ HPSOR\ UHGXQGDQW PHWKRGV IRU FRPPDQG FRQWURO DQG
FRPPXQLFDWLRQV6PDOO XQLWV EXLOGVWDQGDUGRSHUDWLQJSURFHGXUHV 623V WKDWHQVXUHSURILFLHQF\ ZLWKRXW
GHSHQGLQJWRRKHDYLO\RQVSDFHFDSDELOLWLHV/HDGHUVDQG6ROGLHUV0DULQHVWUDLQRQLQGLYLGXDOWDVNVDQGGULOOV
VXFK DV ODQG QDYLJDWLRQ DQG FDOO IRU ILUH ZLWK PHWKRGV WKDW DUH QRW FRQWLQJHQW RQ VSDFHEDVHG DVVHWV
$SSURDFKLQJVSDFHLQWKLVPDQQHUHQVXUHVWKDWVSDFHEDVHGHIIHFWVHQKDQFHMXQJOHRSHUDWLRQVDQGPXOWLSO\
FRPEDW SRZHU ZLWKRXW MHRSDUGL]LQJ WKH PLVVLRQ 6HH )0  IRU PRUH LQIRUPDWLRQ RQ $UP\ VSDFH
RSHUDWLRQV

,1)250$7,21(19,5210(17
 7KHinformation environmentLVWKHDJJUHJDWHRILQGLYLGXDOVRUJDQL]DWLRQVDQGV\VWHPVWKDWFROOHFW
SURFHVVGLVVHPLQDWHRUDFWRQLQIRUPDWLRQ-37KHLQIRUPDWLRQHQYLURQPHQWLVQRWVHSDUDWHRUGLVWLQFW
IURP WKH MXQJOH HQYLURQPHQW EXW LV LQH[WULFDEO\ SDUW RI LW $Q\ DFWLYLW\ WKDW RFFXUV LQ WKH LQIRUPDWLRQ
HQYLURQPHQWVLPXOWDQHRXVO\RFFXUVLQDQGDIIHFWVRQHRUPRUHRIWKHSK\VLFDOGRPDLQV

6HSWHPEHU $730&73& 

&KDSWHU

 7KHLQIRUPDWLRQHQYLURQPHQWLVFRPSRVHGRIWKUHHGLPHQVLRQVSK\VLFDOLQIRUPDWLRQDODQGFRJQLWLYH
7KHSK\VLFDOGLPHQVLRQLQFOXGHVWKHFRQQHFWLYHLQIUDVWUXFWXUHWKDWVXSSRUWVWKHWUDQVPLVVLRQUHFHSWLRQDQG
VWRUDJHRILQIRUPDWLRQ7KHLQIRUPDWLRQDOGLPHQVLRQFRQWDLQVWKHFRQWHQWRUGDWDVXFKDVWH[WRULPDJHV
WKDWVWDIIVFDQFROOHFWSURFHVVDQDO\]HVWRUHDQGGLVVHPLQDWH7KHLQIRUPDWLRQDOGLPHQVLRQSURYLGHVWKH
QHFHVVDU\OLQNEHWZHHQWKHSK\VLFDODQGFRJQLWLYHGLPHQVLRQV7KHFRJQLWLYHGLPHQVLRQUHIHUVWRWKHPLQGV
RI WKRVH ZKR DUH DIIHFWHG E\ DQG DFW XSRQ LQIRUPDWLRQ 7KLV GLPHQVLRQ IRFXVHV RQ WKH VRFLHWDO FXOWXUDO
UHOLJLRXVDQGKLVWRULFDOFRQWH[WVWKDWLQIOXHQFHWKHSHUFHSWLRQVRIWKRVHSURGXFLQJWKHLQIRUPDWLRQDQGRIWKH
WDUJHWVDQGDXGLHQFHVUHFHLYLQJWKHLQIRUPDWLRQ
 $FURVV WKH JOREH LQIRUPDWLRQ LV LQFUHDVLQJO\ DYDLODEOH LQ QHDUUHDO WLPH 7KH DELOLW\ WR DFFHVV WKLV
LQIRUPDWLRQIURPDQ\ZKHUHDWDQ\WLPHEURDGHQVDQGDFFHOHUDWHVKXPDQLQWHUDFWLRQDFURVVPXOWLSOHOHYHOV
LQFOXGLQJSHUVRQWRSHUVRQSHUVRQWRRUJDQL]DWLRQSHUVRQWRJRYHUQPHQWDQGJRYHUQPHQWWRJRYHUQPHQW
6RFLDOPHGLDLQSDUWLFXODUHQDEOHVWKHVZLIWPRELOL]DWLRQRISHRSOHDQGUHVRXUFHVDURXQGLGHDVDQGFDXVHV
HYHQ EHIRUH WKH\ DUH IXOO\ XQGHUVWRRG )URP D PLOLWDU\ VWDQGSRLQW LQIRUPDWLRQ HQDEOHV GHFLVLRQ PDNLQJ
OHDGHUVKLS DQG FRPEDW SRZHU LW LV DOVR NH\ WR VHL]LQJ JDLQLQJ DQG UHWDLQLQJ WKH LQLWLDWLYH DQG WR
FRQVROLGDWLQJJDLQVLQWKHMXQJOHHQYLURQPHQW

&<%(563$&($1'7+((/(&7520$*1(7,&63(&7580
 CyberspaceLVDJOREDOGRPDLQZLWKLQWKHLQIRUPDWLRQHQYLURQPHQWFRQVLVWLQJRIWKHLQWHUGHSHQGHQW
QHWZRUNV RI LQIRUPDWLRQ WHFKQRORJ\ LQIUDVWUXFWXUHV DQG UHVLGHQW GDWD LQFOXGLQJ WKH ,QWHUQHW
WHOHFRPPXQLFDWLRQV QHWZRUNV FRPSXWHU V\VWHPV DQG HPEHGGHG SURFHVVRUV DQG FRQWUROOHUV -3 
)ULHQGO\HQHP\DGYHUVDU\DQGKRVWQDWLRQQHWZRUNVFRPPXQLFDWLRQVV\VWHPVFRPSXWHUVFHOOXODUSKRQH
V\VWHPVVRFLDOPHGLDDQGWHFKQLFDOLQIUDVWUXFWXUHVDUHDOOSDUWRIF\EHUVSDFH
 &\EHUVSDFHLVDQH[WHQVLYHDQGFRPSOH[JOREDOQHWZRUNRIZLUHGDQGZLUHOHVVOLQNVFRQQHFWLQJQRGHV
WKDW SHUPHDWH HYHU\ GRPDLQ 1HWZRUNV FURVV JHRJUDSKLF DQG SROLWLFDO ERXQGDULHV FRQQHFWLQJ LQGLYLGXDOV
RUJDQL]DWLRQVDQGV\VWHPVDURXQGWKHZRUOG&\EHUVSDFHLVVRFLDOO\HQDEOLQJDOORZLQJLQWHUDFWLYLW\DPRQJ
LQGLYLGXDOVJURXSVRUJDQL]DWLRQVDQGQDWLRQVWDWHV&\EHUVSDFHLVGHVFULEHGLQWHUPVRIWKUHHOD\HUV
z 3K\VLFDOQHWZRUNOD\HU²JHRJUDSKLFORFDWLRQVLQDLUODQGPDULWLPHRUVSDFHLQZKLFKHOHPHQWV
RIWKHQHWZRUNUHVLGH
z /RJLFDOQHWZRUNOD\HU²FRPSRQHQWVRIWKHQHWZRUNUHODWHGWRRQHDQRWKHULQD ZD\DEVWUDFWHG
IURP WKH SK\VLFDO QHWZRUN EDVHG RQ WKH ORJLF SURJUDPPLQJ FRGH WKDW GULYHV QHWZRUN
FRPSRQHQWV
z &\EHUSHUVRQDOD\HU²GLJLWDOUHSUHVHQWDWLRQVRILQGLYLGXDOVRUHQWLWLHVLQF\EHUVSDFH

 &\EHUVSDFHLVKLJKO\YXOQHUDEOHIRUVHYHUDOUHDVRQVLQFOXGLQJHDVHRIDFFHVVQHWZRUNDQGVRIWZDUH
FRPSOH[LW\ODFNRIVHFXULW\FRQVLGHUDWLRQVLQQHWZRUNGHVLJQDQGVRIWZDUHGHYHORSPHQWDQGLQDSSURSULDWH
XVHUDFWLYLW\$QLQGLYLGXDORUJURXSFDQHDVLO\DFFHVVF\EHUVSDFHZLWKDQHWZRUNHGGHYLFHDQGDQLQGLYLGXDO
ZLWKDVLQJOHGHYLFHPD\GLVDEOHDQHQWLUHQHWZRUN9XOQHUDELOLWLHVLQWKHV\VWHPVWKDWRSHUDWHLQF\EHUVSDFH
FRQWULEXWHWRDFRQWLQXRXVREOLJDWLRQWRPDQDJHULVNDQGSURWHFWSRUWLRQVRIF\EHUVSDFH
 7KH HOHFWURPDJQHWLF VSHFWUXP(06LVWKHUDQJHRIIUHTXHQFLHVRIHOHFWURPDJQHWLFUDGLDWLRQIURP
]HUR WR LQILQLW\ ,W LV GLYLGHG LQWR  DOSKDEHWLFDOO\ GHVLJQDWHG EDQGV 7KH (06 FURVVHV DOO GRPDLQV DQG
SURYLGHVDYLWDOOLQNEHWZHHQWKHVSDFHDQGF\EHUVSDFHGRPDLQV
 6SDFHDQGF\EHUVSDFHRSHUDWLRQVDUHPXWXDOO\GHSHQGHQWDQGERWKUHO\RQWKH(06IRUFRPPDQGDQG
FRQWURO6SDFHRSHUDWLRQVGHSHQGRQWKH(06IRUWKHWUDQVIHURILQIRUPDWLRQDQGWKHFRQWURORIVSDFHDVVHWV
7KHVH VSDFH DVVHWV WKHQ SURYLGH WKH FRQQHFWLYLW\ QHFHVVDU\ WR RSHUDWH LQ F\EHUVSDFH :KHQ SODQQLQJ
F\EHUVSDFHRSHUDWLRQVOHDGHUVFRQVLGHUWKHUHODWLRQVKLSDQGGHSHQGHQFLHVDPRQJVSDFHF\EHUVSDFHDQGWKH
(06 DQG SDUWLFXODUO\ ZKHQ FRQGXFWLQJ WDUJHWLQJ LQ F\EHUVSDFH )LJXUH  GLVSOD\V IULHQGO\ WKUHDW DQG
QHXWUDO RU QRQDWWULEXWHG QHWZRUNV ERWK ZLWKLQ DQ RSHUDWLRQDO DUHD DQG ZRUOGZLGH ,W GHSLFWV WKH JOREDO
QDWXUHRIF\EHUVSDFHDQGWKHH[WHQGHGEDWWOHILHOG

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

)LJXUH&\EHUVSDFHLQDPXOWLSOHGRPDLQEDWWOHILHOG

 $GYDQWDJHVLQF\EHUVSDFHDQGWKH(06UHVXOWIURPHIIHFWLYHO\V\QFKURQL]LQJ'HSDUWPHQWRI'HIHQVH
LQIRUPDWLRQ QHWZRUN RSHUDWLRQV RIIHQVLYH F\EHUVSDFH RSHUDWLRQV GHIHQVLYH F\EHUVSDFH RSHUDWLRQV
HOHFWURQLF DWWDFN HOHFWURQLF SURWHFWLRQ HOHFWURQLF ZDUIDUH (: VXSSRUW DQG VSHFWUXP PDQDJHPHQW
RSHUDWLRQV6HH)0 DQG0&53'>0&:3@IRUPRUHGHWDLOVRQF\EHUVSDFHHIIHFWVDQG
HOHFWURQLFDWWDFN

-2,1723(5$7,216,1$-81*/((19,5210(17
 -XQJOHRSHUDWLRQVUHTXLUHMRLQWFDSDELOLWLHVWRDFFRPSOLVKPLVVLRQVDQGDFKLHYHREMHFWLYHVDFURVVWKH
UDQJHRIPLOLWDU\RSHUDWLRQV-XQJOHRSHUDWLRQVVSDQIURPURXWLQHPLOLWDU\HQJDJHPHQWWRODUJHVFDOHFRPEDW
RSHUDWLRQVDQGDUHH[HFXWHGE\DMRLQWWDVNIRUFHZLWKLQDGHVLJQDWHGMRLQWRSHUDWLRQVDUHD7KHMRLQWIRUFH
FRPPDQGHU -)& GHVLJQDWHV VXSSRUW UHODWLRQVKLSV EHWZHHQ PDMRU 6HUYLFH RU MRLQW FRPPDQGV DQG MRLQW
IXQFWLRQDOFRPPDQGV7KHPDMRUODQGXQLWVPD\LQFOXGH$UP\IRUFHV0DULQH&RUSVIRUFHVRUDPL[WXUHRI
ERWKLQDMRLQWIRUFHVODQGFRPSRQHQWFRPPDQGVRPHWLPHVFDOOHG-)/&&7KHMRLQWIXQFWLRQDOFRPPDQGV
PD\ LQFOXGH D VSHFLDO RSHUDWLRQV MRLQW WDVN IRUFH D MRLQW VSHFLDO RSHUDWLRQV WDVN IRUFH D SV\FKRORJLFDO

6HSWHPEHU $730&73& 

&KDSWHU

RSHUDWLRQV WDVN IRUFH D FLYLOPLOLWDU\ RSHUDWLRQV WDVN IRUFH DQG RWKHU FDSDELOLWLHV EDVHG RQ D VLWXDWLRQDO
DVVHVVPHQW
 7KURXJKDQLQWHJUDWHGILUHVFRPPDQGPDQ\DGYHUVDULHVHPSOR\PXOWLOD\HUHGLQWHJUDWHGDLUGHIHQVH
V\VWHPVDQGORQJUDQJHURFNHWVDQGPLVVLOHVWRH[HFXWHDQDQWLDFFHVVDQGDUHDGHQLDOVWUDWHJ\WKDWFKDOOHQJHV
WKHMRLQWIRUFH¶VDELOLW\WRSURMHFWFRPEDWSRZHULQWRDWKHDWHURIRSHUDWLRQV:KHQFRPELQHGZLWKOLPLWHG
LQIUDVWUXFWXUH DQG SRUW IDFLOLWLHV WKLV PDNHV MRLQW IRUFLEOH HQWU\ RSHUDWLRQV LQ WKH MXQJOH SDUWLFXODUO\
FKDOOHQJLQJ$UP\0DULQH&RUSVIRUFHVKHOSRYHUFRPHWKHVHFKDOOHQJHVWKURXJKDPXOWLSOHGRPDLQDSSURDFK
WKDWLQFOXGHVLVRODWLQJDQGQHXWUDOL]LQJFULWLFDOQRGHVRIWKHHQHP\¶VLQWHJUDWHGILUHVFRPPDQGWRSURYLGH
ZLQGRZVRIRSSRUWXQLW\IRUMRLQWIRUFLEOHHQWU\6HH-3IRUPRUHLQIRUPDWLRQRQMRLQWIRUFLEOHHQWU\
 2QFHDOORFDWHGIRUFHVDUULYHLQWKHDWHUGXULQJFRQWLQJHQF\RSHUDWLRQVWKH\ZLOORSHUDWHZLWKLQDODUJHU
MRLQW LQWHUJRYHUQPHQWDO LQWHUDJHQF\ DQG PXOWLQDWLRQDO RUJDQL]DWLRQ 7R IDFLOLWDWH WKLV WUDQVLWLRQ
FRPPDQGHUVOHYHUDJHVSHFLDORSHUDWLRQVIRUFHV62)'HSDUWPHQWRI6WDWHDQGWKHDWHUUHVRXUFHVWREXLOG
WKHLULQWHOOLJHQFHSLFWXUHDQGXQGHUVWDQGLQJRIDQRSHUDWLRQDOHQYLURQPHQW,QMXQJOHUHJLRQVWKHODFNRID
86SUHVHQFHRULQDGHTXDWHLQIUDVWUXFWXUHPD\UHTXLUHQDWLRQDODVVHWVDQGUHVRXUFHVWRIXOILOOLQIRUPDWLRQ
UHTXLUHPHQWVDQGPLWLJDWHVXVWDLQPHQWVKRUWFRPLQJV
 +DYLQJ D WKRURXJK XQGHUVWDQGLQJ RI WKH MXQJOH HQYLURQPHQW JUHDWO\ DVVLVWV FRPPDQGHUV ,W EHWWHU
HQDEOHVWKHPWRGHYHORSZRUNDEOHRSHUDWLRQDODSSURDFKHVDQGWDFWLFDOVROXWLRQVDOORZLQJWKHPWRGULYHWKH
RSHUDWLRQVSURFHVV&RPPDQGHUVZKRPDNHDQGLPSOHPHQWGHFLVLRQVIDVWHUHYHQWRDVPDOOGHJUHHJDLQWKH
LQLWLDWLYH

)81'$0(17$/62)-81*/(23(5$7,216
 &RPEDWLQWKHMXQJOHLVFKDUDFWHUL]HGE\ORQJSHULRGVRIGHYHORSLQJ D VLWXDWLRQDQGORRNLQJIRUWKH
HQHP\ DQG VKRUW SHULRGV RI YLROHQW DQG VRPHWLPHV XQH[SHFWHG FRPEDW 2SHUDWLRQV DUH RIWHQ GLVSHUVHG
DFURVVZLGHJHRJUDSKLFDUHDVDQGFRPEDWSRZHULVRQO\PDVVHGDWGHFLVLYHSRLQWVDIWHUORFDWLQJWKHHQHP\
-XQJOHRSHUDWLRQVDUHFKDUDFWHUL]HGE\²
z 5HGXFHGPRELOLW\DQGOLPLWHGOLQHRIVLJKW
z 6KRUWZHDSRQHQJDJHPHQWUDQJHVDQGUHVSRQVHWLPHV
z 0XOWLSOHDQGVLPXOWDQHRXVHQJDJHPHQWVIURPGLIIHUHQWGLUHFWLRQVDQGDQJOHV
z (QHP\IRUFHVRFFXS\LQJIRUWLILHGSRVLWLRQV

 $OWKRXJKWURRSVFRQGXFWMXQJOHRSHUDWLRQVDFFRUGLQJWRWKHIXQGDPHQWDOVFRQWDLQHGLQ$'3DQG
0&:3 WKH\KDYHVSHFLDOWHFKQLTXHVWKDWKHOSWRHQVXUHVXFFHVVLQWKHMXQJOH7KHVHWHFKQLTXHVDFFRXQW
IRUWKHUHVWULFWHGPDQHXYHUVORZWHPSRFORVHFRPEDWDQGOLPLWHGYLVLELOLW\FRPPRQO\IRXQGLQWKHMXQJOH
(IIHFWLYHXQLWVDGDSWWKHLUWDFWLFVDQGXVHWKHVHFKDUDFWHULVWLFVWRWKHLUDGYDQWDJHZKHQRSHUDWLQJLQWKHMXQJOH
 6KRUWILHOGVRIREVHUYDWLRQDQGILUHDQGWKLFNYHJHWDWLRQPDNHPDLQWDLQLQJFRQWDFWZLWKWKHHQHP\
GLIILFXOW7KHVDPHIDFWRUVUHGXFHWKHHIIHFWLYHQHVVRILQGLUHFWILUHDQGPDNHMXQJOHFRPEDWSULPDULO\DILJKW
EHWZHHQLQIDQWU\IRUFHV6XSSRUWE\DLUDQGPHFKDQL]HGIRUFHVFDQEHGHFLVLYHDWWLPHVEXWLVQRWDOZD\V
DYDLODEOHRUHIIHFWLYH
 7RILJKWDQGZLQLQWKHMXQJOHXQLWVPXVW²
z )LJKWIRULQWHOOLJHQFHFRQGXFWDJJUHVVLYHUHFRQQDLVVDQFHDQGVXUYHLOODQFHRSHUDWLRQV
z /HYHUDJHFRPELQHGDUPV
z &RQWUROWKHHVVHQWLDO
z 'LVWLQJXLVKQRQFRPEDWDQWVIURPFRPEDWDQWV

 7KHVHIXQGDPHQWDOVZKHQDSSOLHGE\FRQILGHQWDQGFRPSHWHQWOHDGHUVIXQFWLRQDVJXLGHSRVWVIRUXQLWV
RSHUDWLQJLQWKHMXQJOH,QDGGLWLRQWRWKHVHIXQGDPHQWDOVVPDOOXQLWVPXVWPDLQWDLQGLVFLSOLQHDQGUHO\RQ
ZHOOUHKHDUVHGWDFWLFVWHFKQLTXHVDQGSURFHGXUHV773WREHHIIHFWLYHLQWKHMXQJOH'LVFLSOLQHLVQHFHVVDU\
WRFRPEDWWKHFRPSODFHQF\LQKHUHQWLQRSHUDWLRQVFKDUDFWHUL]HGE\ORQJSHULRGVRILQDFWLYLW\SXQFWXDWHGE\
EULHIHSLVRGHVRILQWHQVH FRPEDW:KHQ WURRSVPDNHFRQWDFW WKH\FDQDFKLHYH PD[LPXPDGYDQWDJHRQO\
WKURXJKDJJUHVVLYHDFWLRQSUHGLFDWHGXSRQUHOHYDQWDQGUHKHDUVHG773

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

 *LYHQ WKH FKDOOHQJHV RI UHFRQQDLVVDQFH OLPLWHG PRELOLW\ DQG UHVWULFWLYH WHUUDLQ MXQJOH RSHUDWLRQV
RIWHQ LQYROYH DPEXVKHV UDLGV DQG PHHWLQJ HQJDJHPHQWV 6SDUVHO\ SRSXODWHG DUHDV DQG LQGLVWLQJXLVKDEOH
WHUUDLQPDNHVILJKWLQJIRUORFDWLRQVOHVVLPSRUWDQWWKDQGHIHDWLQJHQHP\IRUFHVRULQIOXHQFLQJWKHSRSXODFH
)RUH[DPSOHKLOOVLQWKHMXQJOHRIWHQSURKLELWREVHUYDWLRQDQGILUHEHFDXVHRIWKHGHQVHYHJHWDWLRQDQGGR
QRWDOZD\VTXDOLI\DVNH\WHUUDLQKRZHYHUJLYHQWKHODFNRI/2&VVHL]LQJURDGVULYHUVVWUHDPVIRUGLQJ
VLWHVDQGODQGLQJ]RQHVPD\EHFRPHWDFWLFDORURSHUDWLRQDOLPSHUDWLYHV
 7KHIUHTXHQF\RIDPEXVKHVUDLGVDQGPHHWLQJHQJDJHPHQWVPDNHVLWYHU\LPSRUWDQWWKDWVPDOOXQLWV
WKRURXJKO\UHKHDUVHEDWWOHGULOOV,QMXQJOHILUHILJKWVWKHVLGHWKDWLQLWLDWHVFRQWDFWDQGJDLQVILUHVXSHULRULW\
LQWKHILUVWIHZVHFRQGVQRUPDOO\KDVDGHFLVLYHDGYDQWDJH
 $ XQLW SODQQLQJ IRU MXQJOH RSHUDWLRQV IROORZV WKH VDPH SODQQLQJ VHTXHQFH DV LQ DQ\ RWKHU W\SH RI
FRPEDWRSHUDWLRQ,QSODQQLQJWKHXVHRIDYDLODEOHWLPHOHDGHUVFRQVLGHUWKDWPDQ\WDVNVLQWKHMXQJOHWDNH
PRUHWLPHWKDQWKHVDPHWDVNVLQRWKHUHQYLURQPHQWV%HFDXVHRIWKHGLIILFXOWWHUUDLQOHDGHUVDOORWPRUHWLPH
IRU PRYHPHQW DQG HVWDEOLVKLQJ VHFXULW\ 7KLV PHDQV WKDW XQLWV PD\ KDYH WR EHJLQ PRYHPHQWV HDUOLHU WR
DFFRPSOLVKWKHLUPLVVLRQVZLWKLQDVSHFLILHGWLPH,QWKHVHVLWXDWLRQVXQLWVPXVWUHO\RQZHOOUHKHDUVHG623V
773DQGEDWWOHGULOOVWRPLWLJDWHWKHULVNRIDFRQGHQVHGSODQQLQJF\FOH
 7KHIROORZLQJFRQVLGHUDWLRQVLPSDFWILUHPRYHPHQWDQGPDQHXYHULQWKHMXQJOH
z /DFNRIOLQHRIVLJKWDQGFOHDUDQFHPD\SUHYHQWYLVXDOFRQWDFWEHWZHHQXQLWVLQWHUORFNLQJILUHV
DQGWKHXVHRISUHFLVLRQJXLGHGPXQLWLRQV
z 2YHUKHDGYHJHWDWLRQPD\EORFNPRUWDUVPLOOLPHWHUVJUHQDGHVDQGKDQGJUHQDGHV
z 'HQVHYHJHWDWLRQDQGUHVWULFWHGWHUUDLQPD\OLPLWWKHHIIHFWLYHQHVVRIJUD]LQJRUVXSSUHVVLYHILUH
z $GMXVWPHQW RI LQGLUHFW ILUH VXSSRUW LV GLIILFXOW GXH WR OLPLWHG YLVLELOLW\ DQG PD\ KDYH WR EH
DFFRPSOLVKHGE\VRXQG
z 6RXQGVLQWKHMXQJOHGRQRWWUDYHODVIDU KRZHYHUWKHWKLFNHUWKHMXQJOHORXGHUWKHQRLVHZKHQ
PRYLQJWKURXJKLW$OWKRXJKGHQVHYHJHWDWLRQPXIIOHVVRXQGWKLFNXQGHUJURZWKLQFHUWDLQMXQJOHV
PD\PDNHLWGLIILFXOWWRFRQFHDOPRYHPHQW
z +HDWWKLFNYHJHWDWLRQDQGUXJJHGWHUUDLQZLOOH[KDXVWWURRSVUDSLGO\HVSHFLDOO\WKRVHFDUU\LQJ
KHDY\ZHDSRQVDQGUDGLRV
z /DFNRIURDGVDQGOLPLWHGKHOLFRSWHUODQGLQJ]RQHVZLOOKLQGHUUHVXSSO\DQGFDVXDOW\HYDFXDWLRQ
UHTXLULQJIRUFHVWRFDUU\DGGLWLRQDOVXSSOLHVDQGFDVXDOWLHVH[WHQGHGGLVWDQFHV
 6HFXULW\ RSHUDWLRQV DUH D FULWLFDO FRPSRQHQW RI MXQJOH RSHUDWLRQV 7KH MXQJOH¶V GHQVH YHJHWDWLRQ
UHVWULFWLYHWHUUDLQDQGOLPLWHG/2&VFKDOOHQJHUHFRQQDLVVDQFHRSHUDWLRQVDQGPDNHLWGLIILFXOWIRUXQLWVWR
DFFXUDWHO\ DVVHVV WKH HQHP\¶V ORFDWLRQ GLVSRVLWLRQ DQG LQWHQWLRQV 6HFXULW\ RSHUDWLRQV SUHYHQW HQHP\
LQWHOOLJHQFH VXUYHLOODQFH DQG UHFRQQDLVVDQFH DVVHWV IURP GHWHUPLQLQJ IULHQGO\ ORFDWLRQV VWUHQJWKV DQG
ZHDNQHVVHV7KHVHRSHUDWLRQVDOVRSURYLGHHDUO\ZDUQLQJDQGFRQWLQXRXVO\GLVUXSWHQHP\DWWDFNV$FWLYH
VHFXULW\PHDVXUHVLQFOXGHSDWUROVREVHUYDWLRQSRVWVDQGSHULPHWHUVHFXULW\WKH\UHGXFHWKHOLNHOLKRRGRID
XQLWEHLQJDPEXVKHGRUDWWDFNHGE\VXUSULVH$FWLYHVHFXULW\PHDVXUHVZRUNPRVWHIIHFWLYHO\ZKHQXVHGZLWK
SDVVLYHVHFXULW\PHDVXUHV&DPRXIODJHRGRUFRQWUROWUDVKFRQWURODQGQRLVHDQGOLJKWGLVFLSOLQHSUHYHQW
HQHP\GHWHFWLRQ7RSUHYHQWEHLQJWUDFNHGE\WKHHQHP\ WURRSVSROLFHWUDLOVIRUWUDVKDQGDYRLGORFDWLQJ
ELYRXDFVDORQJQDWXUDOOLQHVRIGULIW

),*+7)25,17(//,*(1&(
 )RUFHVSUHSDUHWRILJKWIRULQWHOOLJHQFHWRDQVZHUSULRULW\LQIRUPDWLRQUHTXLUHPHQWVUHJDUGLQJWKUHDW
IRUFHV ERWK LQ DQG RXW RI IULHQGO\ FRQWDFW DFURVV WKH GHHS FORVH VXSSRUW FRQVROLGDWLRQ DQG UHDU DUHDV
$JJUHVVLYH UHFRQQDLVVDQFH DQG VXUYHLOODQFH RSHUDWLRQV DUH QHFHVVDU\ WR RYHUFRPH WKH HQYLURQPHQWDO
FKDOOHQJHVWRLQIRUPDWLRQFROOHFWLRQ8QLWVGLOLJHQWO\ILJKWIRULQWHOOLJHQFHWRORFDWHWKHHQHP\LGHQWLI\LWV
REMHFWLYHVDQGJDLQWKHLQLWLDWLYH)LJKWLQJIRULQWHOOLJHQFHFDQEHSDUWRIDVXFFHVVIXOLQWHOOLJHQFHFROOHFWLRQ
HIIRUW FRQGXFWHG E\ PDQQHG XQPDQQHG PDQQHGXQPDQQHG WHDPLQJ VHQVRUV RU FROOHFWRUV DFURVV DQ\
GRPDLQ
 6PDOO XQLW OHDGHUV LPSOHPHQW 773 WR HQVXUH WKHLU IRUFHV H[SORLW DOO HQFRXQWHUV ZLWK WKH HQHP\ WR
IXUWKHUGHYHORSWKHVLWXDWLRQ7KH\FDUHIXOO\H[DPLQHDQGGRFXPHQWDEDQGRQHGHQHP\ELYRXDFVWRJDWKHUDV
PXFKLQIRUPDWLRQDVSRVVLEOH&DSWXUHGGRFXPHQWVHTXLSPHQWDQGZHDSRQVPD\SURYLGHLQIRUPDWLRQRQ

6HSWHPEHU $730&73& 

&KDSWHU

WKHWKUHDWWRLQFOXGHLWVLQWHQWLRQVDQGFDSDELOLWLHV$EDQGRQHGIRRGVWXIIVPD\UHYHDOWKHHQHP\¶VORJLVWLFDO
DQGVXVWDLQPHQWVLWXDWLRQ(YHQDQDPPXQLWLRQFUDWHPD\\LHOGDORWQXPEHUDQGSDFNLQJGDWH8QLWVFDQXVH
WKLV LQIRUPDWLRQ WR WUDFH WKH FRXQWU\ RI RULJLQ DV ZHOO DV KHOS LGHQWLI\ WKH XQLW LQGLYLGXDOV RU QHWZRUNV
UHVSRQVLEOHIRUSXUFKDVLQJWUDQVSRUWLQJDQGVWRULQJDPPXQLWLRQ
 $VFRXWIDPLOLDUZLWKWKHWHUUDLQDQGWKHHQHP\FDQEHDQH[WUHPHO\YDOXDEOHDVVHW+LVWRULFDOO\86
IRUFHVFRQGXFWLQJMXQJOHRSHUDWLRQVKDYHXWLOL]HGKRVWQDWLRQVFRXWVDWWDFKHGGRZQWRSODWRRQOHYHO7KHVH
VFRXWVZHUHDX[LOLDULHVSDLGE\WKHXQLWWKH\VXSSRUWHGIURPDIXQGHVWDEOLVKHGE\KLJKHUKHDGTXDUWHUVIRU
WKDWSXUSRVH/RFDOUHJXODWLRQVDQGFRPPDQGSROLFLHVSURYLGHJXLGDQFHUHJDUGLQJRSHUDWLRQVVHFXULW\DQG
DXWKRULWLHVWRXWLOL]HKRVWQDWLRQVFRXWV
 7KHUPDO RSWLFV ,5 LPDJLQJ 19'V DQG JURXQG VHQVRUV HQDEOH 6ROGHUV0DULQHV WR EHWWHU JDWKHU
LQIRUPDWLRQDERXWHQHP\WURRSPRYHPHQWVLQWKHMXQJOH*HQHUDOO\UDGDUVDQGSKRWRJUDSK\GR QRWZRUNDV
HIIHFWLYHO\EHFDXVHRIWKHFRQFHDOPHQWDIIRUGHGE\GHQVHIROLDJH
 7KHORFDOSRSXODFHLVRQHRIWKHPRVWYDOXDEOHVRXUFHVRILQIRUPDWLRQ:KHWKHUKRVWLOHIULHQGO\RU
LQGLIIHUHQWWKHSHRSOHFDQSURYLGHLQIRUPDWLRQWKDWZLOOKHOSFRPSOHWHWKHLQWHOOLJHQFHSLFWXUH&RPPXQLW\
OHDGHUVDUHRIWHQIDPLOLDUZLWKWKHWHUUDLQDFWLYLWLHVDQGSRSXODFHDQGFDQSURYLGHLQIRUPDWLRQRQRXWVLGHUV
RU HQHP\ IRUFHV RSHUDWLQJ LQ WKH DUHD 7KLV LQIRUPDWLRQ LV HVSHFLDOO\ KHOSIXO GXULQJ FRXQWHULQVXUJHQF\
RSHUDWLRQV RU ZKHQ FRPEDWWLQJ D JXHUULOOD IRUFH 7KH ORFDO SRSXODFH PD\ SURYLGH LQIRUPDWLRQ RQ HQHP\
WLPHOLQHVDQGSDWWHUQVWKHLUURXWHVDQGORFDWLRQVRIZHDSRQVRUHTXLSPHQWFDFKHV

5HFRQQDLVVDQFH
 ReconnaissanceLVDPLVVLRQXQGHUWDNHQWRREWDLQE\YLVXDOREVHUYDWLRQRURWKHUGHWHFWLRQPHWKRGV
LQIRUPDWLRQDERXWWKHDFWLYLWLHVDQGUHVRXUFHVRIDQHQHP\RUDGYHUVDU\RUWRVHFXUHGDWDFRQFHUQLQJWKH
PHWHRURORJLFDO K\GURJUDSKLF RU JHRJUDSKLF FKDUDFWHULVWLFV RI D SDUWLFXODU DUHD -3  0DQ\ RIIHQVLYH
RSHUDWLRQVLQWKHMXQJOHEHJLQDVUHFRQQDLVVDQFHRSHUDWLRQVEHFDXVHRIIHQVLYHRSHUDWLRQVRIWHQIRFXVRQWKH
XQLW¶VDELOLW\WRILQGWKHHQHP\7KHH[FHOOHQWFRQFHDOPHQWIRXQGLQWKHMXQJOHHQDEOHVWKHHQHP\WRRSHUDWH
XQREVHUYHG ERWK E\ GD\ DQG QLJKW ([WHQVLYH SDWUROOLQJ HQDEOHV WURRSV WR REWDLQ LQIRUPDWLRQ RQ HQHP\
ORFDWLRQVVWUHQJWKDQGGLVSRVLWLRQ
 8QLWVZLWKWKHFDSDELOLW\WRFRQGXFWUHFRQQDLVVDQFHVKRXOGFRQGXFWIUHTXHQWVKRUWSDWUROVGXULQJWKH
FRQGXFW RI QRUPDO PLVVLRQV (IIHFWLYH OHDGHUV FRRUGLQDWH WKHVHSDWUROV ZLWK KLJKHU DQG DGMDFHQW XQLWV ,Q
VRPHVLWXDWLRQVUHFRQQDLVVDQFHPD\EHFRPHWKHSULPDU\REMHFWLYHRIDPDMRUMXQJOHRSHUDWLRQ
 3ODQQLQJ IRU D MXQJOH UHFRQQDLVVDQFH VKRXOG EH WKRURXJK DQG ZHOOFRRUGLQDWHG &RRUGLQDWLRQ ZLWK
KLJKHUDQGDGMDFHQWKHDGTXDUWHUVFDQHQVXUHPD[LPXPUHVXOWVIURPHDFKSDWURODQGHOLPLQDWHGXSOLFDWLRQRI
HIIRUW(DFKUHFRQQDLVVDQFHSDWUROPXVWEHSUHSDUHGWRPDNHFRQWDFWGHYHORSWKHVLWXDWLRQDQGUHSRUWWRLWV
FRQWUROOLQJKHDGTXDUWHUVZLWKRXWEHFRPLQJGHFLVLYHO\HQJDJHG5HIHUWR)0)0 0&73$
>0&:3@DQG0&53$>0&:3@IRUIXUWKHULQIRUPDWLRQRQUHFRQQDLVVDQFHIXQGDPHQWDOV
PHWKRGVRIUHFRQQDLVVDQFHDQGFKDUDFWHULVWLFVRIUHFRQQDLVVDQFHDVVHWV

Ground Reconnaissance in the Jungle Environment

 8QLWV DFFRPSOLVK JURXQG UHFRQQDLVVDQFH E\ PHDQV RI REVHUYDWLRQ SRVWV DQG ORQJ RU VKRUWUDQJH
SDWUROV7KHYDOXHRIREVHUYDWLRQSRVWVLVVRPHZKDWUHGXFHGLQWKHMXQJOHEHFDXVHRIWKHOLPLWHGYLVLELOLW\
KRZHYHUWKHLUYDOXH DVOLVWHQLQJSRVWVUHPDLQVUHOHYDQW IRUHDUO\GHWHFWLRQRIHQHP\ IRUFHV2EVHUYDWLRQ
SRVWV ZRUN EHVW ZKHQ XVHG DORQJ WUDLOV URDGV DQG VWUHDPV WR GHWHFW HQHP\ PRYHPHQW 5HFRQQDLVVDQFH
SDWUROVLQWKHMXQJOHDUHQRUPDOO\VTXDGVL]H7KHVHSDWUROVPRYHLQDPDQQHUWKDWWDNHVDGYDQWDJHRIQDWXUDO
FRQFHDOPHQWDQGDYRLGVEHFRPLQJGHFLVLYHO\HQJDJHGZLWKWKHHQHP\$YLDWLRQDVVHWVLQFUHDVHWKHGHSWK
EHKLQGHQHP\OLQHVWKDWXQLWVFDQHPSOR\VXFKSDWUROV

Aerial Reconnaissance in the Jungle Environment

 8QLWVFDQXVHDHULDOUHFRQQDLVVDQFHWRILQGUHPRWHRUSDUWLDOO\KLGGHQHQHP\HQFDPSPHQWVKHOLFRSWHU
ODQGLQJ]RQHVWRVXSSRUWRSHUDWLRQVDVSDUWRIPLOLWDU\GHFHSWLRQRSHUDWLRQVRUWRWDNHDGYDQWDJHRIJDSVLQ
WKHMXQJOHFDQRS\'HWDLOHGWDFWLFDODHULDOUHFRQQDLVVDQFHUHTXLUHVDLUFUDIWWKDWFDQRSHUDWHDWH[WUHPHO\ORZ
DOWLWXGHVDQGDLUVSHHGVWRSHQHWUDWHWKHGHQVHMXQJOHFDQRS\DQGFROOHFWLQIRUPDWLRQEHORZ

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

Reconnaissance in Force in the Jungle Environment

 $ reconnaissance in force LV D W\SH RI UHFRQQDLVVDQFH RSHUDWLRQ GHVLJQHG WR GLVFRYHU RU WHVW WKH
HQHP\¶VVWUHQJWKGLVSRVLWLRQVDQGUHDFWLRQVRUWRREWDLQRWKHULQIRUPDWLRQ$'3$ reconnaissance
in forceLVDGHOLEHUDWHDWWDFNPDGHWRREWDLQLQIRUPDWLRQDQGWRORFDWHDQGWHVWHQHP\GLVSRVLWLRQVVWUHQJWKV
DQGUHDFWLRQV,WLVXVHGZKHQNQRZOHGJHRIWKHHQHP\LVYDJXHDQGWKHUHLVLQVXIILFLHQWWLPHRUUHVRXUFHVWR
GHYHORSWKHVLWXDWLRQ0&537KHFRPPDQGHUFRQGXFWLQJWKHUHFRQQDLVVDQFHLQIRUFHZLOOQRUPDOO\
RUJDQL]HWKHXQLWLQWRDQXPEHURIUHFRQQRLWHULQJIRUFHV7KHVHUHFRQQRLWHULQJIRUFHVFRQGXFWPRYHPHQWVWR
FRQWDFWKDVW\RUGHOLEHUDWHDWWDFNVUDLGVUHFRQQDLVVDQFHRUSDWUROV2QFHWKHXQLWPDNHVFRQWDFWZLWKWKH
HQHP\WKHFRPPDQGHUFDQEHWWHUDVVHVVWKHHQHP\DQGLWVFDSDELOLWLHV7KHFRPPDQGHUPXVWEHSUHSDUHGWR
H[SORLWVXFFHVVRULIQHFHVVDU\ZLWKGUDZWKHIRUFHV
 $UHFRQQDLVVDQFHLQIRUFHLVDOLPLWHGREMHFWLYHRSHUDWLRQQRUPDOO\FRQGXFWHGE\DEDWWDOLRQVL]HGRU
ODUJHUWDVNIRUFHDQGDVVLJQHGZKHQWKHHQHP\LVRSHUDWLQJZLWKLQDVSHFLILFDUHDDQGWKHFRPPDQGHUFDQQRW
REWDLQDGHTXDWH LQWHOOLJHQFHE\RWKHU PHDQV7KHVL]H RIWKHXQLWWKDWFRQGXFWVDUHFRQQDLVVDQFHLQ IRUFH
GHSHQGVRQWKHQDWXUHRIWKHLQIRUPDWLRQWRDFTXLUHDQGWKHFKDQFHWKDWWKHUHFRQQRLWHULQJIRUFHZLOOKDYHWR
ILJKW RQ XQIDYRUDEOH WHUPV :KHQ FRQGXFWLQJ D UHFRQQDLVVDQFH LQ IRUFH LQ WKH MXQJOH FRPPDQGHUV PXVW
HQVXUH WKDW VXERUGLQDWH IRUFHV FDQ PXWXDOO\ VXSSRUW HDFK RWKHU -XQJOH WHUUDLQ KDV WKH SRWHQWLDO WR
FRPSDUWPHQWDOL]HVXERUGLQDWHXQLWVFRQGXFWLQJDUHD]RQHDQGURXWHUHFRQQDLVVDQFHLIIULHQGO\XQLWVPDNH
FRQWDFWZLWKDQRYHUZKHOPLQJHQHP\IRUFHWKH\ULVNGHIHDWLQGHWDLO

Reconnaissance by Fire in the Jungle Environment

 ,QUHFRQQDLVVDQFHE\ILUHUHFRQQDLVVDQFHHOHPHQWVSODFHGLUHFWRULQGLUHFWILUHRQSRVLWLRQVZKHUHWKHUH
LVDUHDVRQDEOHVXVSLFLRQRIHQHP\RFFXSDWLRQ7KHHOHPHQWVWU\WRSURPSWWKHHQHP\WRUHDFWE\PRYLQJRU
UHWXUQLQJ ILUH DQG GLVFORVH WKHLU GLVSRVLWLRQ RU ZLOOLQJQHVV WR ILJKW 5HFRQQDLVVDQFH E\ ILUH GXULQJ MXQJOH
RSHUDWLRQVFDQFRQILUPWKHSUHVHQFHRIVXVSHFWHGHQHP\HQFDPSPHQWV 8QLWVFDQDOVRXVHLWWRVXSSRUWD
VSRLOLQJDWWDFN ZKHQ WKH\ VXVSHFWDQHQHP\ IRUFH RIFRQFHQWUDWLQJEHIRUHDSODQQHGRIIHQVLYHRSHUDWLRQ
&RPPDQGHUV XVH VSRLOLQJ DWWDFNV WR GLVUXSW HQHP\ WURRS FRQFHQWUDWLRQV DQG DWWDFN SUHSDUDWLRQV
5HFRQQDLVVDQFHE\ILUHIURPDWWDFNKHOLFRSWHUVZLOORIWHQUHYHDOWKHORFDWLRQRIZHOOFRQFHDOHGHQHP\WURRSV
:KHQXVLQJUHFRQQDLVVDQFHE\ILUHFRPPDQGHUVFRQVLGHUWKHUXOHVRIHQJDJHPHQW52(DQGWKHSRWHQWLDO
IRU FROODWHUDO GDPDJH &RPPDQGHUV DOVR DFFHSW WKDW UHFRQQDLVVDQFH E\ ILUH MHRSDUGL]HV WKH HOHPHQW RI
VXUSULVHIRUIROORZRQRSHUDWLRQV

6XUYHLOODQFH
 Surveillance LV WKH V\VWHPDWLF REVHUYDWLRQ RI DHURVSDFH F\EHUVSDFH VXUIDFH RU VXEVXUIDFH DUHDV
SODFHVSHUVRQVRUWKLQJVE\YLVXDODXUDOHOHFWURQLFSKRWRJUDSKLFRURWKHUPHDQV-30DULQH&RUSV
DPSOLILFDWLRQDGGVWKHV\VWHPDWLFYLVXDORUDXUDOREVHUYDWLRQRIDQHQHP\IRUFHRUQDPHGDUHDRILQWHUHVWRU
DQDUHDDQGWKHDFWLYLWLHVLQLWWRFROOHFWLQWHOOLJHQFHUHTXLUHGWRFRQILUPRUGHQ\HQHP\DGYHUVDU\FRXUVHVRI
DFWLRQRULGHQWLI\HQHP\DGYHUVDU\FULWLFDOYXOQHUDELOLWLHVDQGOLPLWDWLRQV0&53%HFDXVHRIWKH
UHVWULFWLYHWHUUDLQDQGOLPLWHG PRELOLW\ ZLGHDUHDVXUYHLOODQFHLVRIWHQ QRWIHDVLEOHLQWKHMXQJOH,QVWHDG
FRPPDQGHUVFRQGXFWVXUYHLOODQFHRSHUDWLRQVWRREVHUYHDQGFROOHFWLQIRUPDWLRQRQNH\SRLQWVVXFKDVWUDLOV
VWUHDPVDQGFOHDULQJV&RPPDQGHUVXVXDOO\SODQVXUYHLOODQFHRSHUDWLRQVWRVXSSRUWRWKHUPLVVLRQV

Ground Surveillance Radars

 *URXQGVXUYHLOODQFHUDGDUVDUHEHVWHPSOR\HGLQWKRVHMXQJOHDUHDVZKHUHYHJHWDWLRQDQGWHUUDLQGR
QRWUHVWULFWOLQHRIVLJKW1LJKWREVHUYDWLRQGHYLFHVDUHDOVRXVHIXOLQVXFKDUHDVGXULQJSHULRGVRIGDUNQHVV
8QDWWHQGHG JURXQG VHQVRUV ZKLFK DUH QRW DIIHFWHG E\ SRRU OLQH RI VLJKW SURYH YHU\ XVHIXO LQ ZDWFKLQJ
VSHFLILFNH\DUHDV+RZHYHUSRRUZHDWKHUDIIHFWVVRPHHOHFWURQLFGHYLFHVDQGPRYLQJWKHGHYLFHVLVGLIILFXOW
LQWKLFNO\IRUHVWHGDUHDV

Air Surveillance
 6XUYHLOODQFH RI MXQJOH DUHDV IURP WKH DLU LV PRVW HIIHFWLYH ZKHQ SLORWV DUH IDPLOLDU ZLWK JURXQG
RSHUDWLRQVDQGFDQUHFRJQL]HFKDQJHVIURPQRUPDOSDWWHUQV5HSHDWHGIOLJKWVE\WKHVDPHFUHZVZLOODWWDLQ
WKLV OHYHO RI IDPLOLDULW\ ,Q DGGLWLRQ WR YLVXDO VXUYHLOODQFH SKRWRJUDSKLF FRYHUDJH RI DQ DUHD DVVLVWV WKH

6HSWHPEHU $730&73& 

&KDSWHU

VXUYHLOODQFHHIIRUW6LGHORRNLQJDLUERUQHUDGDUZRUNVSRRUO\LQWKLFNIROLDJHEXWFDQEHXVHGIRUVXUYHLOODQFH
DORQJ URDGV WUDLOV RU VWUHDPV /LNHZLVH DWPRVSKHULF REVFXUDWLRQ DQG YHJHWDWLRQ GHJUDGHV ,5 GHWHFWLRQ
GHYLFHV

/(9(5$*(&20%,1('$506
 :KLOHOLJKWLQIDQWU\DUHWKHSUHGRPLQDQWFORVHFRPEDWIRUFHVLQWKHMXQJOHWKH$UP\0DULQH&RUSV
ILJKW DV FRPELQHG DUPV WHDPV )LJKWLQJ DV D FRPELQHG DUPV WHDP SURYLGHV 86 IRUFHV ZLWK D GLVWLQFW
DGYDQWDJHRYHUWKHHQHP\DQGLVFULWLFDOWRDFKLHYLQJDQGPDLQWDLQLQJRSHUDWLRQDOLQLWLDWLYH7KHHIIHFWLYH
XVHRIFRPELQHGDUPVSUHVHQWVWKHHQHP\ZLWKPXOWLSOHGLOHPPDVZKLOHDIIRUGLQJIULHQGO\IRUFHVGLVWLQFW
DQGYDULHG&2$VDFURVVPXOWLSOHGRPDLQV+RZHYHUHIIHFWLYHO\OHYHUDJLQJFRPELQHGDUPVFDSDELOLWLHVLQ
WKHMXQJOHUHTXLUHVFDUHIXOSODQQLQJDQGDGDSWLYHWDFWLFVWRPLWLJDWHWKHHIIHFWVRIUHVWULFWLYHWHUUDLQDQGKDUVK
ZHDWKHU
 $Q HIIHFWLYH FRPELQHG DUPV RUJDQL]DWLRQ HQVXUHV WKDW IRUFHV DUH WDVNRUJDQL]HG ZLWK LQIDQWU\ WKH
HVVHQWLDO EXLOGLQJ EORFN IRU DOO RUJDQL]DWLRQV FRQGXFWLQJ MXQJOH RSHUDWLRQV ,QIDQWU\ SURWHFWV PRXQWHG
HOHPHQWVDVWKHFRPELQHGDUPVXQLWPRYHVDQGPDQHXYHUVWRDFFRPSOLVKLWVPLVVLRQ7KHLQIDQWU\GHVWUR\V
WKH HQHP\ LQ EXLOWXS DUHDV GHIHQVLYH SRVLWLRQV UHVWULFWHG WHUUDLQ RU VXEWHUUDQHDQ DUHDV ZKHUH PRXQWHG
IRUFHVFDQQRWRSHUDWH,WSUHYHQWVHQHP\LQILOWUDWLRQLQWRFOHDUHGDUHDVE\VHFXULQJFRQVROLGDWLRQDUHDV
 $UPRU HOHPHQWV SURWHFW 6ROGLHUV0DULQHV E\ GHVWUR\LQJ RU VXSSUHVVLQJ HQHP\ DUPRU RU GHIHQVLYH
SRVLWLRQVZLWKSUHFLVHILUHIURPPD[LPXPSRVVLEOHUDQJHV7KHSUHVHQFHRIDUPRUDQGDYLDWLRQDVVHWVFDQ
DOVRKDYHDSRZHUIXOSV\FKRORJLFDOHIIHFWHVSHFLDOO\DJDLQVWSRRUO\WUDLQHGRULQH[SHULHQFHGHQHP\IRUFHV
'XULQJMRLQWRSHUDWLRQV ZLWK $UP\ DQG0DULQH &RUSV IRUFHVWKH 0DULQH&RUSV UHOLHVRQ $UP\ IRUFHVWR
SURYLGH WDQN DVVHWV SODQQHUV FRRUGLQDWH WR HQVXUH DSSURSULDWH DVVHWV DUH DYDLODEOH WR VXSSRUW 0DULQHV DV
QHFHVVDU\
 (QDEOHUV VXFK DV HQJLQHHUV PLOLWDU\ SROLFH DQG FKHPLFDO XQLWV SURYLGH DVVXUHG PRELOLW\ DQG
FRXQWHUPRELOLW\WRIDFLOLWDWHPRYHPHQWDQGPDQHXYHULQWKHFORVHVXSSRUWDQGFRQVROLGDWLRQDUHDV(QJLQHHU
VXSSRUWPD\EHFULWLFDOWRVXVWDLQLQJPRELOLW\GXULQJSHULRGVRIKHDY\SUHFLSLWDWLRQ8QLWVFRQGXFWH[SDQGHG
HQJLQHHU UHFRQQDLVVDQFH WR LGHQWLI\ WUDIILFDEOH URXWHV LGHQWLI\ DQG UHGXFH REVWDFOHV RU PLQHILHOGV DQG
FRQVWUXFWODQGLQJ]RQHVGURS]RQHVDQGKDVW\DLUVWULSV$OWKRXJKIODWRSHQDUHDVPD\H[LVWHQJLQHHUVPD\
QHHGWRVWDELOL]HVRLODQGSUHSDUHVXUIDFHVWRVXSSRUWDLUFUDIW-XQJOHVRLOJHQHUDOO\SURGXFHVH[WHQVLYHGXVW
ZKHQFOHDUHGRIYHJHWDWLRQDQGTXLFNO\HURGHVRUWXUQVWRPXGGXULQJKHDY\SUHFLSLWDWLRQ

$UPRU2SHUDWLRQVLQWKH-XQJOH
 5HVWULFWLYHWHUUDLQDQGWKHODFNRI/2&VFDQOLPLWDUPRUHGIRUFHV¶PRELOLW\LQWKHMXQJOH7KHLUUROHLQ
WKH MXQJOH GLIIHUV IURP WKDW LQ PRUH RSHQ WHUUDLQ ,QVWHDG RI UDSLG HQYHORSPHQWV DQG GHHS SHQHWUDWLRQV
DUPRUHGIRUFHVSULPDULO\SURYLGHVXSSRUWE\ILUHIRULQIDQWU\LQMXQJOHRSHUDWLRQV&RPPDQGHUVFDUHIXOO\
FRQVLGHUHPSOR\LQJDUPRULQWKHMXQJOHDVRQHRILWVJUHDWHVWVWUHQJWKVPRELOLW\LVRIWHQFRPSURPLVHGLQ
WKLVHQYLURQPHQW
 $UPRUHGIRUFHVDUHVXLWHGWRWKHIROORZLQJWDFWLFDOWDVNVLQWKHMXQJOH
z 6XSSRUWE\ILUHSupport by fireLVDWDFWLFDOPLVVLRQWDVNLQZKLFKDPDQHXYHUIRUFHPRYHVWRD
SRVLWLRQZKHUHLWFDQHQJDJHWKHHQHP\E\GLUHFWILUHLQVXSSRUWRIDQRWKHUPDQHXYHULQJIRUFH
)0Support by fireLVWRHQJDJHWKHHQHP\E\GLUHFWILUHWRVXSSRUWDPDQHXYHULQJIRUFH
XVLQJRYHUZDWFKRUE\HVWDEOLVKLQJDEDVHRIILUH7KHVXSSRUWLQJIRUFHGRHVQRWFDSWXUH HQHP\
IRUFHVRUWHUUDLQ0&53
z 5HWDLQNH\WHUUDLQRetainLVDWDFWLFDOPLVVLRQWDVNLQZKLFKWKHFRPPDQGHUHQVXUHVWKDWDWHUUDLQ
IHDWXUHFRQWUROOHGE\DIULHQGO\IRUFHUHPDLQVIUHHRIHQHP\RFFXSDWLRQRUXVH)0Retain
LV WR RFFXS\ DQG KROG D WHUUDLQ IHDWXUH WR HQVXUH LW LV IUHH RI HQHP\ RFFXSDWLRQ RU XVH
0&53%HFDXVHRIWKHLUVXSHULRUILUHSRZHUDQGSURWHFWLRQDUPRUHGIRUFHVDUHZHOOVXLWHG
WRUHWDLQLQJNH\WHUUDLQ
z 'HVWUR\RUGHIHDWHQHP\DUPRU
z 5HGXFH HQFLUFOHG RU LVRODWHG HQHP\ IRUFHV Reduce LV D WDFWLFDO PLVVLRQ WDVN WKDW LQYROYHV WKH
GHVWUXFWLRQRIDQHQFLUFOHGRUE\SDVVHGHQHP\IRUFH)07KH0DULQH&RUSVGRHVQRW

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

FRQVLGHU UHGXFH WR EH D WDFWLFDO WDVN 6HH 0&'3  IRU WDFWLFDO WDVNV $UPRU VXSSRUWHG E\
LQIDQWU\PD\EHXVHGWRUHGXFHDQLVRODWHGHQHP\IRUFHWKDWKDVORVWLWVPRELOLW\
z 6HFXUHFULWLFDOIDFLOLWLHVRULQIUDVWUXFWXUHSecureLVDWDFWLFDOPLVVLRQWDVNWKDWLQYROYHVSUHYHQWLQJ
DXQLWIDFLOLW\RUJHRJUDSKLFDOORFDWLRQIURPEHLQJGDPDJHGRUGHVWUR\HGDVDUHVXOWRIHQHP\
DFWLRQ )0  Secure LV WR JDLQ SRVVHVVLRQ RI D SRVLWLRQ WHUUDLQ IHDWXUH SLHFH RI
LQIUDVWUXFWXUHRUFLYLODVVHWZLWKRUZLWKRXWIRUFHDQGSUHYHQWLWVGHVWUXFWLRQRUORVVE\HQHP\
DFWLRQ7KHDWWDFNLQJIRUFHPD\RUPD\QRWKDYHWRSK\VLFDOO\RFFXS\WKHDUHD0&'3
z 6XSSUHVV Suppress LV D WDFWLFDO PLVVLRQ WDVN WKDW UHVXOWV LQ WKH WHPSRUDU\ GHJUDGDWLRQ RI WKH
SHUIRUPDQFH RI D IRUFH RU ZHDSRQ V\VWHP EHORZ WKH OHYHO QHHGHG WR DFFRPSOLVK LWV PLVVLRQ
)07KH0DULQH&RUSVGHVFULEHVWKHWDVNDVWKHWUDQVLHQWRUWHPSRUDU\GHJUDGDWLRQRIDQ
RSSRVLQJ IRUFH RU WKH SHUIRUPDQFH RI D ZHDSRQV V\VWHP EHORZ WKH OHYHO QHHGHG WR IXOILOO LWV
PLVVLRQREMHFWLYHV6HH0&'3IRUWDFWLFDOWDVNGHVFULSWLRQV:LWKWKHLUVXSHULRUILUHSRZHU
DUPRUHGIRUFHVFDQEHXVHGWRVXSSUHVVWKHHQHP\GXULQJWKHDWWDFN

Restrictions on Use of Armor

 8VHRIDUPRULQWKHMXQJOHLVUHVWULFWHGE\
z 9HJHWDWLRQ'HQVHO\IRUHVWHGDUHDVZKHUHWUHHWUXQNV JURZFORVHDQGKHDY\DERYHJURXQGURRW
V\VWHPV H[LVW OLPLW DUPRUHG IRUFHV¶ PRELOLW\ 7KLFN VWDQGV RI EDPERR PD\ VORZ RU HYHQ VWRS
WDQNV
z 7RSRJUDSK\ 0DQ\ MXQJOHV H[LVW LQ UXJJHG PRXQWDLQRXV DUHDV WKDW LPSHGH DUPRUHG IRUFHV¶
PRELOLW\6ZDPSVFRDVWDOULYHUEDVLQVDQGRWKHUDUHDVZLWKKLJKZDWHUWDEOHVDQGPXOWLSOHZDWHU
ZD\VSRVHREVWDFOHVWRWDQNVEHFDXVHRIWKHLUVRIWVRLODQGIUHTXHQWGHHSFKDQQHOV
z :HDWKHU+HDY\UDLQDQGPRQVRRQVFDXVHULYHUVDQGVWUHDPVWRULVHDQGEHFRPHXQIRUGDEOH7KH\
DOVRVDWXUDWHWKHVRLODQGGDPDJHURDGVOHDYLQJERWKLPSURYHGDQGXQLPSURYHG/2&VLPSDVVDEOH
IRUDUPRU

Overcoming Armor Restrictions

 $OWKRXJKOLPLWHGWDQNVDUHQRWSUHFOXGHGIURPMXQJOHRSHUDWLRQVDQGUHVWULFWLRQVFDQEHPLWLJDWHGE\
DGKHULQJWRWKHIROORZLQJSULQFLSOHV
z .QRZWKHWHUUDLQ.QRZZKHUHWDQNVFDQWUDYHODQGDYRLGDUHDVREYLRXVO\LPSDVVDEOH
z .QRZ WKH ZHDWKHU .QRZ WKH UHFHQW FRQGLWLRQV .QRZ WKH IRUHFDVW .QRZ WKH HIIHFWV WKHVH
FRQGLWLRQVKDYHRQDUPRUHGYHKLFOHV
z 0RYH GLVPRXQWHG LQIDQWU\ LQ IURQW RI DUPRUHG IRUFHV WKURXJK XQIDPLOLDU DQG GHQVHO\ IRUHVWHG
WHUUDLQ7KH\FDQFKHFNDQGYHULI\FRQGLWLRQVDFWDVJXLGHVDQGSURYLGHVHFXULW\

Tips for Armor Movement in the Jungle

 -XQJOHFRQGLWLRQVYDU\ JUHDWO\ IURPSODFHWRSODFHDQGVHDVRQWRVHDVRQ 6RPH PRYHPHQWWLSV WKDW
DSSO\WRPRVWMXQJOHDUHDV
z 5HGVLOWVRLOVWHQGWREUHDNGRZQTXLFNO\ZKHQZHW7KH\PD\VXSSRUWDVLQJOHWUDFNHGYHKLFOH
EXWEHFRPHLPSDVVDEOHZLWKKHDY\XVH
z 6WUHDPVDQGFUHHNVWKDWDSSHDUIRUGDEOHEXWFRQWDLQ\HOORZLVKUHHGVDQGFORXG\ZDWHUXVXDOO\KDYH
ERWWRPVWRRVRIWWRVXSSRUWWDQNV
z 5LFHSDGGLHVLQWKHGU\VHDVRQDUHXVXDOO\WUDIILFDEOHWRWDQNVDQGSHUVRQQHOFDUULHUV+RZHYHU
GXULQJ WKH UDLQ\ VHDVRQ WKH\ RIWHQ EHFRPH LPSDVVDEOH )LHOGV ZLWK VWDQGLQJ ZDWHU LQ WKH ZHW
VHDVRQPD\KDYHDERWWRPWRRVRIWWRPRYHRQWKRVHFRQWDLQLQJFOHDUZDWHUDQGJUHHQYHJHWDWLRQ
DUH XVXDOO\ ILUP HQRXJK IRU DUPRUHG IRUFHV 7R GHWHUPLQH LI YHKLFOHV FDQ WUDYHO WKURXJK ULFH
SDGGLHVWURRSVFDQ³SROH´WKHDUHD8VLQJWKLVWHFKQLTXHWURRSVSUHFHGHWDQNVDFURVVWKHILHOG
VLQNLQJSROHVWRLQFKHV>WRFHQWLPHWHUV@LQGLDPHWHUZLWKIODWHQGVLQWRWKHJURXQG,I
WKHSROHVFDQQRWEHVXQNWKHYHKLFOHVXVXDOO\FDQFURVVWKHILHOG
z 5LYHUDQGVWUHDPERWWRPVDUHXVXDOO\LPSDVVDEOH7KHDUPRUHGYHKLFOHODXQFKHGEULGJHFDQVSDQ
IHHWPHWHUVZLWKXQSUHSDUHGDEXWPHQWVDQGWKHUDSLGO\HPSODFHGEULGJHV\VWHPXVHGE\
6WU\NHUVFDQ VSDQD IRRW PHWHUXQSUHSDUHGJDS%RWKDUH PRUHWKDQDGHTXDWH IRUPRVW

6HSWHPEHU $730&73& 

&KDSWHU

VWUHDPVHQFRXQWHUHGLQWKHMXQJOH7URRSVHQVXUHWKDWWKHEDQNVKRXOGHUVFDQVXSSRUWWKHEULGJH
ZKLOHWDQNVFURVV:KHQXQLWVGRQRWKDYHDEULGJHWKH\FDQXVHSHUIRUDWHGVWHHOSODQNVWRSURYLGH
DILUPVXUIDFHRQZKLFKWDQNVFDQIRUGVPDOOVWUHDPV

0HFKDQL]HG,QIDQWU\2SHUDWLRQVLQWKH-XQJOH
 0HFKDQL]HG LQIDQWU\ RIIHU FRPPDQGHUV DGGLWLRQDO RSWLRQV IRU MXQJOH RSHUDWLRQV 7DVNV WKDW
PHFKDQL]HGLQIDQWU\XQLWVDUHPRVWOLNHO\WRFRQGXFWLQDMXQJOHHQYLURQPHQWLQFOXGHPRYHPHQWWRFRQWDFW
DQGUHFRQQDLVVDQFHLQIRUFHMovement to contactLVDW\SHRIRIIHQVLYHRSHUDWLRQGHVLJQHGWRGHYHORSWKH
VLWXDWLRQDQGHVWDEOLVKRUUHJDLQFRQWDFW$'3
 +DVW\DQGGHOLEHUDWHDWWDFNVFRQGXFWHGLQWKHMXQJOHDGKHUHWRWKHVDPHSULQFLSOHVDVWKRVHFRQGXFWHG
RQOHVVUHVWULFWLYHWHUUDLQKRZHYHUWHFKQLTXHVVFRSHDQGFRQWUROPHDVXUHVPD\GLIIHUGXHWRWKHWHUUDLQDQG
YLVLELOLW\UHVWULFWLRQV$WWDFNVLQWKHMXQJOHQRUPDOO\RFFXURQDQDUURZHUIURQWDQGEHFDXVHRIWKLVUHVWULFWLYH
FRQWUROPHDVXUHVPD\EHQHFHVVDU\WRSUHYHQWIUDWULFLGHDQGFDUHIXOO\FRQWUROPRYHPHQW

Considerations for Employment

 &RPPDQGHUVPD\XVHPHFKDQL]HGLQIDQWU\LQGLIIHUHQWZD\VVRWKH\PXVWZHLJKWKHSUHFLVHPLVVLRQ
LWLVDVVLJQHGDJDLQVWLWVVWUHQJWKVDQGZHDNQHVVHVLQDMXQJOHHQYLURQPHQWPXFKOLNHDUPRUXQLWV
 7KHDGYDQWDJHVRIXVLQJPHFKDQL]HGLQIDQWU\LQWKHMXQJOHLQFOXGH²
z 4XLFN UHDFWLRQ RYHU GLVWDQFHV 0HFKDQL]HG LQIDQWU\ KDV LWV RZQ WUDQVSRUWDWLRQ LPPHGLDWHO\
DYDLODEOHDQGFRQVLGHUDEOHILUHSRZHUWRDFFRPSDQ\LW,QVDYDQQDRURQILUPEXWOLJKWO\YHJHWDWHG
JURXQGPHFKDQL]HGLQIDQWU\DQGDUPRU FDQPRYHFRQVLGHUDEOHGLVWDQFHVLQDUHODWLYHO\VKRUW
WLPH
z )LUHSRZHU $ PHFKDQL]HG IRUFH KDV JUHDWHU ILUHSRZHU WKDQ GLVPRXQWHG RU OLJKW LQIDQWU\ XQLWV
0HFKDQL]HGLQIDQWU\XQLWVDUHHTXLSSHGZLWKWKH%UDGOH\ILJKWLQJYHKLFOH7KH%UDGOH\ILJKWLQJ
YHKLFOH¶VPPPDLQJXQFDSDEOHRIILULQJKLJKH[SORVLYHRUDUPRUSLHUFLQJURXQGVFRD[LDO
PRXQWHG PP PDFKLQH JXQ DQG WXEH ODXQFKHG RSWLFDOO\ WUDFNHG ZLUH JXLGHG DQWLWDQN
PLVVLOHVFDQEHXVHGWRVWUHQJWKHQGHIHQVHVRUSURYLGHRYHUPDWFKLQJGLUHFWILUH
z /DUJHORDGFDSDFLW\7KH%UDGOH\ILJKWLQJYHKLFOHSURYLGHVPHFKDQL]HGLQIDQWU\XQLWVZLWKDODUJHU
FDSDFLW\WRFDUU\IRRGZDWHUDQGDPPXQLWLRQWKDQRWKHULQIDQWU\XQLWV
z &RPPDQG FRQWURO DQG FRPPXQLFDWLRQV 0HFKDQL]HG LQIDQWU\ SRVVHVVHV D ZLGHU DUUD\ RI
FRPPDQGDQGFRQWUROV\VWHPVWKDQGLVPRXQWHGIRUFHV,QDGGLWLRQWRYDULRXVUDGLRVPHFKDQL]HG
LQIDQWU\FRPPDQGHUVKDYHDFFHVVWRFRPPDQGDQGFRQWUROV\VWHPVVXFKDV%OXH)RUFH7UDFNHU
WKDWHQDEOHDEHWWHUXQGHUVWDQGLQJRIFXUUHQWRSHUDWLRQVDQGSURYLGHJUHDWHUFRQWURO
z 2SWLFV 0HFKDQL]HG LQIDQWU\ YHKLFOHV DUH HTXLSSHG ZLWK DGYDQFHG RSWLFV V\VWHPV FDSDEOH RI
SHQHWUDWLQJGHQVHMXQJOHIROLDJHDQGSURYLGLQJOHWKDODQGDFFXUDWHGLUHFWILUH
 'LVDGYDQWDJHVRIPHFKDQL]HGLQIDQWU\LQWKHMXQJOHHQYLURQPHQWLQFOXGH²
z 0RELOLW\:KHQXVHGDVDPRXQWHGIRUFHPHFKDQL]HGLQIDQWU\XQLWVDVZHOODVDUPRUXQLWVPD\
EHOLPLWHGLQWKHVFRSHRIWKHLURSHUDWLRQVE\WKHWHUUDLQLQZKLFKWKH\DUHHPSOR\HG
z 1RLVH 7KH QRLVH JHQHUDWHG E\ WUDFNHG YHKLFOHV RIWHQ SUHYHQWV PHFKDQL]HG LQIDQWU\ XQLWV IURP
DFKLHYLQJVXUSULVH
z /RJLVWLFVUHTXLUHPHQWV0HFKDQL]HGLQIDQWU\XQLWVDVZLWKDUPRUXQLWVKDYHDVLJQLILFDQWORJLVWLFV
UHTXLUHPHQWEHFDXVHRILQFUHDVHGSHWUROHXPRLOVDQGOXEULFDQWVNQRZQDV32/FRQVXPSWLRQ
JUHDWHU UHSDLU SDUWV UHTXLUHPHQWV PRUH IUHTXHQW UHFRYHU\ RSHUDWLRQV DQG ODUJHU PDLQWHQDQFH
GHPDQGV

Mounted Movement
 :KHQPRYLQJLQWKHMXQJOHWURRSVLGHDOO\PRYHLQPXOWLSOHFROXPQVRQDVEURDGDIURQWDVSRVVLEOH
ZLWK VXSSRUW UHDG\ QHDUE\ $Q DHULDO URXWH UHFRQQDLVVDQFH SUHFHGHV WKH OHDG HOHPHQWV /HDGHUV FORVHO\
FRRUGLQDWHLQGLUHFWILUHVXSSRUWVRLWLVUDSLGO\DYDLODEOHVLQFHFRQWDFWLVRIWHQYLROHQWDQGZLWKRXWZDUQLQJ
&ORVHDLUVXSSRUW&$6DQGDWWDFNDYLDWLRQSURYLGHRWKHUUHVSRQVLYHPHDQVWRUHDFWWRHQHP\FRQWDFW

 $730&73& 6HSWHPEHU

 )RXQGDWLRQVIRU-XQJOH2SHUDWLRQV

The Amphibious Assault Vehicle and Amphibious Combat Vehicle

 0DULQH&RUSVXQLWVHTXLSSHGZLWKHLWKHUWKHDPSKLELRXVDVVDXOWYHKLFOH$$9RUDPSKLELRXVFRPEDW
YHKLFOH$&9SRVVHVVDGGLWLRQDOPRELOLW\FDSDELOLWLHVLQWKHMXQJOHDVERWKDPSKLELRXVYHKLFOHVFDQEHXVHG
WRVZLPULYHUVRUZDWHUREVWDFOHVWKDWDUHWRRGHHSWRIRUG7KH$$9LVDIXOO\WUDFNHGWURRSFDUULHUDUPHG
ZLWKD0.PPJUHQDGHODXQFKHUDQG0FDOLEHUPDFKLQHJXQ7KH$&9LVDZKHHOHGDPSKLELRXV
YHKLFOHZLWKDWKUHH0DULQHFUHZFDSDEOHRIFDUU\LQJDSSUR[LPDWHO\WR0DULQHV/LNHWKH$$9LWLV
DUPHGZLWKD0.DQGDQ0PDFKLQHJXQ9DULDQWVRIWKH$&9LQFOXGHDFRPPDQGDQGFRQWUROYHKLFOH
DQGDYHUVLRQDUPHGZLWKDPPFDQQRQ

7KH6WU\NHU/LJKW$UPRUHG9HKLFOH
 ,QIDQWU\XQLWVHTXLSSHGZLWKWKH6WU\NHUOLJKWDUPRUHGYHKLFOH/$9FDQFRQGXFWMXQJOHRSHUDWLRQV
7KH6WU\NHU/$9LVOLJKWHUIDVWHUDQGPRUHPRELOHWKDQWUDFNHGDUPRUHGIRUFHVDQGSRVVHVVHVVLJQLILFDQW
ILUHSRZHU 7KH 6WU\NHU LV HTXLSSHG ZLWK D 0. PP DXWRPDWLF JUHQDGH ODXQFKHU D 0  FDOLEHU
PDFKLQH JXQ DQG LQ FHUWDLQ FRQILJXUDWLRQV D PP 0$ PDLQ JXQ RU D PP 0N %XVKPDVWHU
FDQQRQ7KH/$9LVHTXLSSHGZLWKD0%XVKPDVWHUPPFDQQRQDQGWZR0PPPDFKLQHJXQV
,QWKHMXQJOHFRPPDQGHUVRIWHQXVH6WU\NHU/$9HTXLSSHGXQLWVWRFRQGXFWPRYHPHQWWRFRQWDFWV$IWHUD
GLVPRXQWHGIRUFHPDNHVFRQWDFWZLWKWKHHQHP\WKH6WU\NHU/$9SURYLGHVVXSSRUWE\ILUH&RPPDQGHUV
HPSOR\LQJWKH6WU\NHU/$9LQWKHMXQJOHFRQVLGHUWKHIROORZLQJ
z 7KH6WU\NHU/$9LVOLJKWHUWKDQPRVWWUDFNHGYHKLFOHVDQGFDSDEOHRIRSHUDWLQJRQVRIWHURUPRUH
VDWXUDWHG VRLOV 7KH 6WU\NHU/$9 FDQ RSHUDWH LQ [ ZKHHO GULYH KRZHYHU WKLV LQFUHDVHV IXHO
FRQVXPSWLRQ
z &HUWDLQYDULDQWVRIWKH/$9FDQVZLPDFURVVZDWHUREVWDFOHVKRZHYHUFRPPDQGHUVDQGRSHUDWRUV
PXVWFRQVXOWWKHDSSURSULDWHWHFKQLFDO PDQXDOVWRHQVXUHWKHLUVSHFLILF PRGHOFDQSHUIRUPWKLV
IXQFWLRQDQGWKDWWKHZDWHUFXUUHQWLVZLWKLQDFFHSWDEOHVWDQGDUGV
z 'HQVHMXQJOHIROLDJHDQGUHVWULFWLYHWHUUDLQRIWHQSUHYHQWHPSOR\LQJ6WU\NHU/$9ZHDSRQVDWWKHLU
PD[LPXPHIIHFWLYHUDQJHVWKHUHE\QHJDWLQJWKHLUSHUFHLYHGILUHSRZHUDGYDQWDJH

&21752/7+((66(17,$/
 0RVW MXQJOH DUHDV DUH WRR ODUJH WR EH FRPSOHWHO\ RFFXSLHG RU HIIHFWLYHO\ FRQWUROOHG LQ ZKROH
$UP\0DULQH &RUSV IRUFHV LQVWHDG IRFXV WKHLU HIIRUWV RQ FRQWUROOLQJ RQO\ WKH HVVHQWLDOV IRU PLVVLRQ
DFFRPSOLVKPHQW$WDPLQLPXPWKLVUHTXLUHVFRQWURORINH\WHUUDLQ,QWKHMXQJOHFRPPDQGHUVGHWHUPLQH
NH\WHUUDLQEDVHGRQLWVIXQFWLRQDOSROLWLFDOHFRQRPLFRUVRFLDOVLJQLILFDQFH$EULGJHZDWHUZD\SRZHU
VWDWLRQ QDWXUDO UHVRXUFH RU D SODFH RI ZRUVKLS PD\ EH NH\ WHUUDLQ 6HH SDUDJUDSK  IRU NH\ WHUUDLQ
GHILQLWLRQ
 $OWKRXJKDOOSULQFLSOHVRIMRLQWRSHUDWLRQVDSSO\WRMXQJOHRSHUDWLRQVGXHWRWKHGLVSHUVHGQDWXUHRI
MXQJOH RSHUDWLRQV FRPPDQGHUV PXVW FDUHIXOO\ EDODQFH WKH SULQFLSOHV RI PDVV DQG HFRQRP\ RI IRUFH 7R
GHSOR\WKHFRPEDWSRZHUUHTXLUHGWRORFDWHWKHHQHP\FRPPDQGHUVFRQGXFWHFRQRP\RIIRUFHRSHUDWLRQV
HOVHZKHUH%HFDXVHRIWKLVWKH\FDUHIXOO\DVVXPHULVNLQWKRVHDUHDVWKH\FKRRVHQRWWRFRQWURO+RZHYHU
FRPPDQGHUVPXVWUHWDLQWKHDELOLW\WRPDVVFRPEDWSRZHURQFHWURRSVORFDWHWKHHQHP\2QO\FRQWUROOLQJ
UHTXLUHPHQWVHVVHQWLDOIRUPLVVLRQVXFFHVVSUHVHUYHVFRPEDWSRZHUDQGHQDEOHVWKHPDVVLQJRIIRUFHVDQG
HIIHFWVDWGHFLVLYHSRLQWV
 +RVWQDWLRQ IRUFHV SDUDPLOLWDU\ RUJDQL]DWLRQV RU IULHQGO\ JXHUULOODV PD\ RIIHU D PHDQV IRU
FRPPDQGHUVWREDODQFHHFRQRP\RIIRUFHZLWKWKHQHHGWRPDVVFRPEDWSRZHU$VIRUFHPXOWLSOLHUVWKHVH
SDUWQHUVFDQFRQWUROUHTXLUHPHQWVGHHPHGLPSRUWDQW\HWQRWHVVHQWLDOWRMXQJOHRSHUDWLRQV+RZHYHUZKHQ
UHO\LQJRQWKHVHIRUFHVFRPPDQGHUVPXVWPDLQWDLQFRPPXQLFDWLRQVDQGOLDLVRQWRHQVXUHPXWXDOVXSSRUW
DQGFRRUGLQDWLRQ62)DUHWUDLQHGDQGHTXLSSHGWRZRUNFORVHO\ZLWKKRVWQDWLRQIRUFHVLQWKLVFDSDFLW\

',67,1*8,6+121&20%$7$176)520&20%$7$176
 'HVSLWHDSSHDULQJWREHVSDUVHO\SRSXODWHGDYDULHW\RILQGLJHQRXVSRSXODWLRQV²ERWKFRPEDWDQWVDQG
QRQFRPEDWDQWV²LQKDELW MXQJOHV 5HFRJQL]LQJ WKLV FRPPDQGHUV UHO\ RQ WKH SULQFLSOH RI UHVWUDLQW WR OLPLW
FROODWHUDOGDPDJHDQGSUHYHQWWKHXQQHFHVVDU\XVHRIIRUFH&RPPDQGHUVH[HUFLVHGLVFUHWLRQZLWKGLUHFWDQG
LQGLUHFW ILUHV HQVXULQJ WURRSV FOHDUO\ LGHQWLI\ DQG FRQILUP WDUJHWV DV OHJLWLPDWH PLOLWDU\ WDUJHWV

6HSWHPEHU $730&73& 

&KDSWHU

,QGLVFULPLQDWHILUHVLQWRDUHDVDVVXPHGWREHXQLQKDELWHGRURQO\LQKDELWHGE\HQHP\IRUFHVPD\UHVXOWLQ
FROODWHUDO GDPDJH WKDW VLJQLILFDQWO\ KLQGHUV WKH RSHUDWLRQ &RPPDQGHUV PDNH HYHU\ HIIRUW WR GLVWLQJXLVK
EHWZHHQFRPEDWDQWVDQGQRQFRPEDWDQWV
 %HFDXVH MXQJOH FRPEDW LV SULPDULO\ FRQGXFWHG E\ GLVPRXQWHG LQIDQWU\ JXHUULOODV RU LQVXUJHQWV
GLVWLQJXLVKLQJ EHWZHHQ FRPEDWDQWV DQG QRQFRPEDWDQWV LV SDUWLFXODUO\ FKDOOHQJLQJ /LJKW IRUFHV
XQHQFXPEHUHGE\KHDY\YHKLFOHVHTXLSPHQWDQGVXSSO\WUDLQVFDQPRUHHDVLO\EOHQGLQZLWKQRQFRPEDWDQWV
DQGKLGHDPRQJWKHSRSXODFH(QHP\IRUFHVFDQHDVLO\FDFKHOLJKWZHDSRQVDQGPXQLWLRQVXQWLOQHHGHGIRU
RSHUDWLRQVHQDEOLQJWKHPWRPRYHIUHHO\DPRQJWKHSRSXODFHDQGPDNLQJLWPRUHGLIILFXOWIRU86IRUFHVWR
LGHQWLI\WKHP5HFRJQL]LQJWKDW86IRUFHVVWULFWO\DGKHUHWRWKHODZRIZDUWKLVWDFWLFPD\HPEROGHQHQHP\
IRUFHVZKRIHHOFRQILGHQWWKH\DUHVDIHDPRQJWKHSRSXODFH6ROGLHUV0DULQHVRSHUDWLQJLQWKHVHFRQGLWLRQV
PDNH HYHU\ HIIRUW WR GLVFULPLQDWH EHWZHHQ FRPEDWDQWV DQG QRQFRPEDWDQWV 7KH\ H[HUFLVH UHVWUDLQW DQG
GHPRQVWUDWH WKH KLJKHVW OHYHO RI LQGLYLGXDO DQG RUJDQL]DWLRQDO GLVFLSOLQH DQG MXGJPHQW 6ROGLHUV0DULQHV
PXVW SRVVHVV WKH PDWXULW\ WR GLUHFW WKHLU DJJUHVVLRQ WRZDUGV WKH HQHP\ DQG UHIUDLQ IURP GLUHFWLQJ LW DW
QRQFRPEDWDQWV&RPPDQGHPSKDVLVOHDGHUVKLSDQGWUDLQLQJDUHFULWLFDOVLQFHIDLOLQJWRGLVWLQJXLVKEHWZHHQ
FRPEDWDQWDQGQRQFRPEDWDQWVPD\VWURQJO\LPSDFWQDWLRQDODQGLQWHUQDWLRQDOSHUFHSWLRQVRIWKHRSHUDWLRQ
 :KHQGLVWLQJXLVKLQJEHWZHHQFRPEDWDQWVDQGQRQFRPEDWDQWVFRPPDQGHUVFDUHIXOO\FRQVLGHUZKHWKHU
WR SK\VLFDOO\ UHORFDWH QRQFRPEDWDQWV +LVWRULFDO DWWHPSWV WR VHSDUDWH FRPEDWDQWV IURP QRQFRPEDWDQWV E\
SK\VLFDOO\UHORFDWLQJQRQFRPEDWDQWSRSXODWLRQVKDYHPHWZLWKOLPLWHGVXFFHVVDQGRIWHQIRVWHUUHVHQWPHQW
DPRQJWKHFLYLOLDQSRSXODFH,QVWHDGFRPPDQGHUVPDNHHIIRUWVWRIUHTXHQWO\YLVLWDQGLISRVVLEOHVHFXUH
YLOODJHV WRZQV DQG RWKHU FLYLOLDQ DUHDV 7KLV DSSURDFK LV PRUH OLNHO\ WR EXLOG UDSSRUW DQG WUXVW ZLWK WKH
FLYLOLDQSRSXODFHZKRLQWXUQLVPRUHOLNHO\WRUHMHFWWKHHQHP\¶VHIIRUWVWRRSHUDWHIUHHO\DPRQJWKHP

 $730&73& 6HSWHPEHU

 &KDSWHU
&RPEDW3RZHULQ-XQJOH5HJLRQV

3URMHFWLQJFRPEDWSRZHULQWKHMXQJOHUHTXLUHVDFRPELQDWLRQRIXQLTXHPHWKRGVDQG
GHWHUPLQHG OHDGHUVKLS7KLV FKDSWHU SURYLGHV WDFWLFV WHFKQLTXHV DQG SURFHGXUHV WR
HQKDQFHWKHVXUYLYDELOLW\DQGHIIHFWLYHQHVVRIIRUFHVRSHUDWLQJDFURVVWKHFRPSHWLWLRQ
FRQWLQXXPLQDQDXVWHUHDQGGHPDQGLQJHQYLURQPHQW7KURXJKWKHHOHPHQWVRIFRPEDW
SRZHU LW GHVFULEHV KRZ XQLWV DGDSW RSHUDWLRQV WR DFKLHYH D GHFLVLYH HGJH RYHU WKH
HQHP\

&20%$732:(5
 Combat powerLVWKHWRWDOPHDQVRIGHVWUXFWLYHDQGRUGLVUXSWLYHIRUFHWKDWDPLOLWDU\XQLWIRUPDWLRQ
FDQDSSO\DJDLQVWWKHRSSRQHQWDWDJLYHQWLPH-37KH$UP\GHILQHVcombat power DVWKHWRWDOPHDQV
RIGHVWUXFWLYHFRQVWUXFWLYHDQGLQIRUPDWLRQFDSDELOLWLHVWKDWDPLOLWDU\XQLWRUIRUPDWLRQFDQDSSO\DWDJLYHQ
WLPH$'37KH0DULQH&RUSVDGGVWKDWFRPEDWSRZHULVWKH WRWDOGHVWUXFWLYH IRUFH EURXJKWWREHDU
DJDLQVWWKHHQHP\LWLVDXQLTXHSURGXFWRIDYDULHW\RISK\VLFDOPRUDODQGPHQWDOIDFWRUV)RUPRUHRQ
FRPEDWSRZHUVHH0&'3
 7KH $UP\ GHVFULEHV FRPEDW SRZHU XVLQJ HLJKW HOHPHQWV OHDGHUVKLS LQIRUPDWLRQ FRPPDQG DQG
FRQWURO PRYHPHQWDQG PDQHXYHULQWHOOLJHQFH ILUHVVXVWDLQPHQW DQGSURWHFWLRQ&RPEDWSRZHULVQRWD
QXPHULFDOYDOXHEXWLWFDQEHHVWLPDWHGDQGLVDOZD\VUHODWLYHWRDQHQHP\%HIRUHDQRSHUDWLRQFRPEDW
SRZHULVXQUHDOL]HGSRWHQWLDO7KH$UP\FODVVLILHVVL[HOHPHQWVRIFRPEDWSRZHUDVZDUILJKWLQJIXQFWLRQV
FRPPDQGDQGFRQWUROPRYHPHQWDQGPDQHXYHULQWHOOLJHQFHILUHVVXVWDLQPHQWDQGSURWHFWLRQ7KH0DULQH
&RUSVUHFRJQL]HVLQIRUPDWLRQDVD VHYHQWKZDUILJKWLQJIXQFWLRQ. $ warfighting functionLVDJURXSRIWDVNV
DQG V\VWHPV XQLWHG E\ D FRPPRQ SXUSRVH WKDW FRPPDQGHUV XVH WR DFFRPSOLVK PLVVLRQV DQG WUDLQLQJ
REMHFWLYHV$'36HH$'3DQG)0IRUPRUHLQIRUPDWLRQRQWKHDSSOLFDWLRQRIFRPEDWSRZHU
WKURXJKWKHZDUILJKWLQJIXQFWLRQVXVLQJOHDGHUVKLSDQGLQIRUPDWLRQWRDFKLHYHXQLW\RIHIIRUW0DULQHVVHH
0&'3DQG0&'3IRUPRUHLQIRUPDWLRQRQWKHFRQFHQWUDWLRQRIFRPEDWSRZHUWRZDUGWKH PDLQ
HIIRUWDQGWKHDFFHSWDQFHRISUXGHQWULVN

/($'(56+,3
 &RPPDQGHUVDSSO\OHDGHUVKLSWKURXJKPLVVLRQFRPPDQG7KURXJKOHDGHUVKLSWKHXQUHDOL]HGSRWHQWLDO
RIFRPEDWSRZHULVWUDQVIRUPHGLQWRDFWLRQLeadershipLVWKHDFWLYLW\RILQIOXHQFLQJSHRSOHE\SURYLGLQJ
SXUSRVH GLUHFWLRQ DQG PRWLYDWLRQ WR DFFRPSOLVK WKH PLVVLRQ DQG LPSURYH WKH RUJDQL]DWLRQ $'3 
/HDGHUVKLS LV DOVR WKH PXOWLSO\LQJ DQG XQLI\LQJ HOHPHQW RI FRPEDW SRZHU &RQILGHQW FRPSHWHQW DQG
LQIRUPHGOHDGHUVKLSLQWHQVLILHVWKHHIIHFWLYHQHVVRIDOORWKHUHOHPHQWVRIFRPEDWSRZHUE\IRUPXODWLQJVRXQG
RSHUDWLRQDO LGHDV DQG LQVWLOOLQJ GLVFLSOLQH DQG PRWLYDWLRQ LQ WKH IRUFH *RRG OHDGHUV DUH WKH FDWDO\VW IRU
VXFFHVV(IIHFWLYHOHDGHUVKLSFDQFRPSHQVDWHIRUGHILFLHQFLHVLQDOOWKHZDUILJKWLQJIXQFWLRQVEHFDXVHLWLV
WKH PRVW G\QDPLF HOHPHQW RI FRPEDW SRZHU 7KH RSSRVLWH LV DOVR WUXH FRXQWHUSURGXFWLYH OHDGHUVKLS FDQ
QHJDWH DGYDQWDJHV LQ ZDUILJKWLQJ FDSDELOLWLHV )RU PRUH GLVFXVVLRQV RQ OHDGHUVKLS UHIHU WR $'3 
0&'30&:3>0&:3@DQG)0
 /HDGHUVKLS HQVXUHV 6ROGLHUV0DULQHV XQGHUVWDQG WKH SXUSRVH RI RSHUDWLRQV DQG XVH WKHLU IXOO
FDSDELOLWLHV,QHYHU\RSHUDWLRQOHDGHUVFODULI\SXUSRVHDQGPLVVLRQGLUHFWRSHUDWLRQVDQGVHWWKHH[DPSOH
IRUFRXUDJHDQGFRPSHWHQFH7KH\KROGWKHLU6ROGLHUV0DULQHVWRWKH$UP\0DULQH&RUSV9DOXHVDQGHQVXUH
WKH\FRPSO\ZLWKWKHODZRIZDU0DULQHVFDQVHH0&:30&:3IRUGHWDLOHGLQIRUPDWLRQRQ
WKH0DULQH&RUSV9DOXHV

6HSWHPEHU $730&73& 

&KDSWHU

 &RQILGHQW FRPSHWHQW DQG HQJDJHG OHDGHUV DUH FULWLFDO WR VXFFHVVIXO MXQJOH RSHUDWLRQV (IIHFWLYH
OHDGHUVFRPEDWWKHFRPSODFHQF\DQGIDWLJXHLQKHUHQWLQRSHUDWLRQVFKDUDFWHUL]HGE\ORQJSHULRGVRILQDFWLYLW\
SXQFWXDWHGE\XQH[SHFWHGDQGYLROHQWHQJDJHPHQWV7KH\PDLQWDLQWKHKHDOWKZHOIDUHDQGPRUDOHRIWKHLU
6ROGLHUV0DULQHV WKURXJK FRPPXQLFDWLRQV HQJDJHPHQW DQG GLVFLSOLQH /HDGHUV OLVWHQ WR WKHLU
6ROGLHUV0DULQHV¶FRQFHUQVDQGNHHSWKHPLQIRUPHGDVWKHVLWXDWLRQFKDQJHV7KH\VKDUHLQWKHSULYDWLRQVRI
MXQJOHFRPEDWDQGHQVXUHWKHLUVXERUGLQDWHVDGKHUHWRWKHSUDFWLFHVQHFHVVDU\WRUHPDLQHIIHFWLYHLQWKLVKDUVK
HQYLURQPHQW
 &RPPDQGHUVDQGOHDGHUVFDQQRWDOORZWKHLUOHDGHUVKLSUHVSRQVLELOLWLHVWRLPSHGHRQWKHLUDELOLW\WR
FDUH IRU WKHPVHOYHV 7KH MXQJOH¶V KDUVK HQYLURQPHQW H[DFWV WKH VDPH WROO RQ OHDGHUV DV LW GRHV WKHLU
VXERUGLQDWHVDQGOHDGHUVDUHHTXDOO\DVVXVFHSWLEOHWRIDWLJXHGHK\GUDWLRQDQGKHDWLQMXU\DVWKRVHWKH\OHDG
+RZHYHUWKHFRQVHTXHQFHVRIDIDWLJXHGRULQFDSDFLWDWHGOHDGHUFDQEHIDUPRUHGHYDVWDWLQJWKDQDIDWLJXHG
RULQFDSDFLWDWHG6ROGLHU0DULQH7DVNVUHTXLULQJTXLFNUHDFWLRQFRPSOH[UHDVRQLQJDQGGHWDLOHGSODQQLQJ
UHTXLUHOHDGHUVZLWKKLJKFRJQLWLYHIXQFWLRQ/HDGHUVGRQRWSURYHWKHLUPHWWOHE\ZRUNLQJORQJHUKRXUVRU
E\SHUIRUPLQJPRUHDUGXRXVWDVNVWKDQWKHLUVXERUGLQDWHV(IIHFWLYHOHDGHUVWUXVWWKHLUVXERUGLQDWHVPDQDJH
WKHLUWLPHDQGSURSHUO\GHOHJDWHWDVNVDFURVVWKHRUJDQL]DWLRQWRPDLQWDLQDQHIILFLHQWDQGHIIHFWLYHILJKWLQJ
IRUFH
 3HHUOHDGHUVDWHFKHORQFORVHO\PRQLWRUHDFKRWKHUIRUVLJQVDQGV\PSWRPVRIIDWLJXHGHK\GUDWLRQ
LOOQHVVRUKHDWLQMXU\3ODWRRQVHUJHDQWVDQGSODWRRQOHDGHUVFRPPDQGHUVFRPSDQ\FRPPDQGHUVDQGILUVW
VHUJHDQWVDQGEDWWDOLRQFRPPDQGHUVDQGFRPPDQGVHUJHDQWVPDMRUVDOOORRNRXWIRUHDFKRWKHUDQGHQVXUH
WKHLUFRXQWHUSDUWVDUHH[HUFLVLQJVRXQGMXGJPHQWLQFDULQJIRUWKHPVHOYHV7KH\HQVXUHWKDWOHDGHUVDVZHOO
DVWKHLU6ROGLHUV0DULQHVDGKHUHWRWKHDSSURSULDWHZRUNUHVWF\FOH7KH\LQWHUYHQHHDUO\ZKHQWKH\VXVSHFW
WKDWWKHLUFRXQWHUSDUWLVMHRSDUGL]LQJWKHLUKHDOWKVDIHW\RUHIIHFWLYHQHVV

,1)250$7,21
 (YHU\HQJDJHPHQWEDWWOHDQGPDMRURSHUDWLRQUHTXLUHVFRPSOHPHQWDU\LQIRUPDWLRQRSHUDWLRQVWRERWK
LQIRUPD JOREDODXGLHQFHDQGWRLQIOXHQFHDXGLHQFHV ZLWKLQDQRSHUDWLRQDODUHD,QIRUPDWLRQLVD ZHDSRQ
DJDLQVW HQHP\ FRPPDQG DQG FRQWURO DQG D PHDQV WR DIIHFW HQHP\ PRUDOH ,W LV ERWK GHVWUXFWLYH DQG
FRQVWUXFWLYH &RPPDQGHUV XVH LQIRUPDWLRQ WR XQGHUVWDQG YLVXDOL]H GHVFULEH DQG GLUHFW WKH ZDUILJKWLQJ
IXQFWLRQV 6ROGLHUV0DULQHV FRQVWDQWO\ XVH LQIRUPDWLRQ WR SHUVXDGH DQG LQIRUP WDUJHW DXGLHQFHV 'XULQJ
ODUJHVFDOHFRPEDWRSHUDWLRQVWKH-)&FDQFUHDWHDMRLQWPLOLWDU\LQIRUPDWLRQVXSSRUWWDVNIRUFHWRVHUYHDV
WKHSULQFLSDORUJDQL]DWLRQUHVSRQVLEOHIRULQIRUPDWLRQRSHUDWLRQVLQWKHMRLQWRSHUDWLRQVDUHD7KH$UP\¶V
FRQWULEXWLRQWRLQIRUPDWLRQRSHUDWLRQVGXULQJODUJHVFDOHFRPEDWLVWKHPLOLWDU\LQIRUPDWLRQVXSSRUWJURXS
7KH $UP\ DVVLJQV RQH PLOLWDU\ LQIRUPDWLRQ VXSSRUW JURXS WR WKH $FWLYH &RPSRQHQW DQG WKUHH PLOLWDU\
LQIRUPDWLRQVXSSRUWJURXSVWRWKH5HVHUYH&RPSRQHQW

,1)250$7,21:$5),*+7,1*)81&7,21
 7KHLQIRUPDWLRQZDUILJKWLQJIXQFWLRQFRQVLVWVRIWKHPDQDJHPHQWDQGDSSOLFDWLRQRILQIRUPDWLRQDQG
LWV GHOLEHUDWH LQWHJUDWLRQ ZLWK WKH RWKHU ZDUILJKWLQJ IXQFWLRQV WR LQIOXHQFH UHOHYDQW DFWRU SHUFHSWLRQV
EHKDYLRU DFWLRQ RU LQDFWLRQ DQG VXSSRUW KXPDQ DQG DXWRPDWHG GHFLVLRQ PDNLQJ 7KH LQIRUPDWLRQ
ZDUILJKWLQJ IXQFWLRQ KHOSV FRPPDQGHUV DQG VWDIIV XQGHUVWDQG DQG OHYHUDJH WKH SHUYDVLYH QDWXUH RI
LQIRUPDWLRQ LWV PLOLWDU\ XVHV DQG LWV DSSOLFDWLRQ DFURVV DOO RSHUDWLRQDO SKDVHV DQG WKH UDQJH RI PLOLWDU\
RSHUDWLRQV 7KH LQIRUPDWLRQ ZDUILJKWLQJ IXQFWLRQ LQWHJUDWHV SURWHFWV DQG SUHVHUYHV IULHQGO\ LQIRUPDWLRQ
ZKLOHOHYHUDJLQJWKHLQIRUPDWLRQDOHIIHFWVRIPLOLWDU\DFWLYLWLHVWRDFKLHYHREMHFWLYHV
 $OWKRXJK WKH MXQJOH RIWHQ ODFNV UREXVW LQIRUPDWLRQ LQIUDVWUXFWXUH LQIRUPDWLRQ RSHUDWLRQV UHPDLQ D
UHOHYDQWZD\WRVKDSHFRQGLWLRQVIRUIXWXUHRSHUDWLRQVDQGLQIOXHQFHIULHQGO\HQHP\DQGQHXWUDODXGLHQFHV
'XULQJMXQJOHRSHUDWLRQVLQIRUPDWLRQFROOHFWLRQDQGH[FKDQJHPD\EHPRVWHIIHFWLYHWKURXJKVPDOOXQLWDQG
NH\OHDGHUHQJDJHPHQWV+RZHYHUWKHIRXQGDWLRQRIHIIHFWLYHLQIRUPDWLRQRSHUDWLRQVUHTXLUHVUHFRJQL]LQJ
WKDW DFWLRQV DUH PRUH SRZHUIXO WKDQ ZRUGV DQG 0DULQHV PXVW FRQVLGHU KRZ WKHLU DFWLYLWLHV DIIHFW WKH
LQIRUPDWLRQ HQYLURQPHQW ZKHQ WKH\ SODQ DQG DVVHVV LQIRUPDWLRQ RSHUDWLRQV &RPPDQGHUV UHFRJQL]H WKDW
GHOLEHUDWH LQIRUPDWLRQ RSHUDWLRQV RIWHQ KDYH VLJQLILFDQW FRQVWUDLQWV UHVWUDLQWV DQG DSSURYDO DXWKRULW\
ZLWKKHOGDWDKLJKHUHFKHORQ%HFDXVHRIWKLVFRPPDQGHUVDQGVWDIISODQLQIRUPDWLRQRSHUDWLRQVLQDGYDQFH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

WRHQVXUH0DULQHVKDYHDGHTXDWHWLPHWRUHFHLYHWKHQHFHVVDU\DSSURYDODQGGHOLYHUHIIHFWVLQWKHLQIRUPDWLRQ
HQYLURQPHQWZKHQQHHGHG
 :KLOHWKHDFWLRQVRIDOO0DULQHVFDQLQIOXHQFHWKHLQIRUPDWLRQHQYLURQPHQWWKHSULPDU\RUJDQL]DWLRQ
FKDUJHG ZLWK H[HFXWLQJ GHOLEHUDWH LQIRUPDWLRQ RSHUDWLRQV LV WKH 0DULQH ([SHGLWLRQDU\ )RUFH ,QIRUPDWLRQ
*URXSNQRZQDV0,*7KLVJURXSFRRUGLQDWHVLQWHJUDWHVDQGHPSOR\VLQIRUPDWLRQZDUIDUHFDSDELOLWLHVWR
HQVXUHIULHQGO\IRUFHPDQHXYHUDQGGHQ\WKHHQHP\IUHHGRPRIDFWLRQLQWKHLQIRUPDWLRQHQYLURQPHQW7KH
0DULQH ([SHGLWLRQDU\ )RUFH ,QIRUPDWLRQ *URXS FRQWDLQV D FRPPXQLFDWLRQV EDWWDOLRQ ZLWK D GHIHQVLYH
F\EHUVSDFH RSHUDWLRQV FRPSDQ\ DQG D UDGLR EDWWDOLRQ ZLWK DQ LQIRUPDWLRQ ZDUIDUH FRPSDQ\ )RU PRUH
LQIRUPDWLRQRQLQIRUPDWLRQRSHUDWLRQVVHH0&:3>0&:3@

&200$1'$1'&21752/:$5),*+7,1*)81&7,21
 Command and controlLVWKHH[HUFLVHRIDXWKRULW\DQGGLUHFWLRQE\DSURSHUO\GHVLJQDWHGFRPPDQGHU
RYHU DVVLJQHG DQG DWWDFKHG IRUFHV LQ WKH DFFRPSOLVKPHQW RI WKH PLVVLRQ -3  7KH 0DULQH &RUSV
DPSOLILFDWLRQDGGVWKHPHDQVE\ZKLFKDFRPPDQGHUUHFRJQL]HVZKDWQHHGVWREHGRQHDQGVHHVWRLWWKDW
DSSURSULDWHDFWLRQVDUHWDNHQ&RPPDQGDQGFRQWUROLVRQHRIWKHZDUILJKWLQJIXQFWLRQV0&537KH
command and control warfighting function LV WKH UHODWHG WDVNV DQG D V\VWHP WKDW HQDEOH FRPPDQGHUV WR
V\QFKURQL]HDQGFRQYHUJHDOOHOHPHQWVRIFRPEDWSRZHU$'37KHSULPDU\SXUSRVHRIWKHFRPPDQG
DQGFRQWUROZDUILJKWLQJIXQFWLRQLVWRDVVLVWFRPPDQGHUVLQLQWHJUDWLQJWKHRWKHUHOHPHQWVRIFRPEDWSRZHU
PRYHPHQWDQGPDQHXYHUPDQHXYHULQWHOOLJHQFHILUHVVXVWDLQPHQWORJLVWLFVSURWHFWLRQLQIRUPDWLRQDQG
OHDGHUVKLSMission commandLVWKH$UP\¶VDSSURDFKWRFRPPDQGDQGFRQWUROWKDWHPSRZHUVVXERUGLQDWH
GHFLVLRQPDNLQJDQGGHFHQWUDOL]HGH[HFXWLRQDSSURSULDWHWRWKHVLWXDWLRQ$'3&RPPDQGDQGFRQWURO
DUH LQWHUUHODWHG &RPPDQG UHVLGHV ZLWK FRPPDQGHUV DQG LQFOXGHV WKH DXWKRULW\ DQG UHVSRQVLELOLW\ IRU
HIIHFWLYHO\ XVLQJ DYDLODEOH UHVRXUFHV DQG IRU SODQQLQJ WKH HPSOR\PHQW RUJDQL]LQJ FRRUGLQDWLQJ DQG
FRQWUROOLQJRIPLOLWDU\IRUFHVIRUWKHDFFRPSOLVKPHQWRIPLVVLRQV,WLQFOXGHVUHVSRQVLELOLW\IRU WKHKHDOWK
ZHOIDUHPRUDOHDQGGLVFLSOLQHRIDVVLJQHGSHUVRQQHO ControlLVWKHUHJXODWLRQRIIRUFHVDQGZDUILJKWLQJ
IXQFWLRQVWRDFFRPSOLVKWKHPLVVLRQLQDFFRUGDQFHZLWKWKHFRPPDQGHU¶VLQWHQW$'3ControlLVWR
PDLQWDLQ SK\VLFDO LQIOXHQFH E\ RFFXSDWLRQ RU UDQJH RI ZHDSRQ V\VWHPV RYHU WKH DFWLYLWLHV RU DFFHVV LQ D
GHILQHGDUHD0&53
 5HOLDEOH FRPPDQG DQG FRQWURO V\VWHPV DUH HVVHQWLDO LQ MXQJOH RSHUDWLRQV $ command and control
systemLVWKHDUUDQJHPHQWRISHRSOHSURFHVVHVQHWZRUNVDQGFRPPDQGSRVWVWKDWHQDEOHFRPPDQGHUVWR
FRQGXFW RSHUDWLRQV $'3  &RPPDQG DQG FRQWURO V\VWHPV HQDEOH FRPPDQGHUV WR FRPPXQLFDWH
LQIRUPDWLRQDQGFRQWUROIRUFHVZKHWKHUPRXQWHGRUGLVPRXQWHGDQGDUHNH\HQDEOHUVRIVXFFHVVIXORSHUDWLRQV
&RPPDQG DQG FRQWURO V\VWHPV IDFLOLWDWH FRPPXQLFDWLRQV DFURVV HFKHORQV DQG IRUFHV VHSDUDWHG E\ YDVW
GLVWDQFHV &RPPDQG DQG FRQWURO ILUH VXSSRUW UHVXSSO\ DQG HYDFXDWLRQ DOO GHSHQG RQ HIIHFWLYH
FRPPXQLFDWLRQV&RPPDQGHUVGHYHORSDUHGXQGDQWDQGUHOLDEOHFRPPXQLFDWLRQVDUFKLWHFWXUHZLWKLQWKHLU
FRPPDQG DQG FRQWURO V\VWHP WKDW LV FDSDEOH RI IXQFWLRQLQJ LQ D GHQLHG GHJUDGHG DQG GLVUXSWHG VSDFH
RSHUDWLRQDOHQYLURQPHQW7KHFRPPDQGDQGFRQWUROV\VWHPFRPSRQHQWVFULWLFDOWRHIIHFWLYHMXQJOHRSHUDWLRQV
LQFOXGHLQWHJUDWLQJSURFHVVHVQHWZRUNVLQIRUPDWLRQDQGFRPPXQLFDWLRQV\VWHPVDQGFRPPDQGSRVWV

,17(*5$7,1*352&(66(6
 &RPPDQGHUV HVWDEOLVK DQG XVH SURFHVVHV DQG SURFHGXUHV WR RUJDQL]H DFWLYLWLHV ZLWKLQ WKHLU
KHDGTXDUWHUV DQG WKURXJKRXW WKH IRUFH &RPPDQGHUV DQG VWDII XVH VHYHUDO LQWHJUDWLQJ SURFHVVHV WR
V\QFKURQL]HVSHFLILFIXQFWLRQVWKURXJKRXWWKHRSHUDWLRQVSURFHVV,QWHJUDWLQJSURFHVVHVLQFOXGHWKHPLOLWDU\
GHFLVLRQPDNLQJSURFHVV0'03WKH0DULQH&RUSVSODQQLQJSURFHVV0&33LQWHOOLJHQFHSUHSDUDWLRQRI
WKH EDWWOHILHOGEDWWOHVSDFH ,3% LQIRUPDWLRQ FROOHFWLRQ WDUJHWLQJ ULVN PDQDJHPHQW DQG NQRZOHGJH
PDQDJHPHQW

0LOLWDU\'HFLVLRQ0DNLQJ3URFHVV
 7KHmilitary decision-making processLVDQLWHUDWLYHSODQQLQJPHWKRGRORJ\WRXQGHUVWDQGWKHVLWXDWLRQ
DQGPLVVLRQGHYHORSDFRXUVHRIDFWLRQDQGSURGXFHDQRSHUDWLRQSODQRURUGHU$'37KH0'03
FRQVLVWVRIVHYHQVWHSVZLWKLQSXWVDVHULHVRIVXEVWHSVDQGRXWSXWV,WLVDFROODERUDWLYHSODQQLQJSURFHVV
FRQGXFWHGE\WKHFRPPDQGHUDQGVWDII%HFDXVHRIWKHFKDOOHQJHVDVVRFLDWHGZLWKLQIRUPDWLRQFROOHFWLRQLQ

6HSWHPEHU $730&73& 

&KDSWHU

WKH MXQJOH FRPPDQGHUV PD\ KDYH WR UHYLVLW VWHSV RI WKH 0'03 DIWHU UHFRQQDLVVDQFH RSHUDWLRQV \LHOG
LQIRUPDWLRQ RQ WKH HQHP\ VLWXDWLRQ GLVSRVLWLRQ DQG LQWHQW )RU PRUH LQIRUPDWLRQ RQ WKH 0'03 VHH
)07KHVHYHQVWHSVRIWKH0'03
z 6WHS±5HFHLSWRIPLVVLRQ
z 6WHS±0LVVLRQDQDO\VLV
z 6WHS±&2$GHYHORSPHQW
z 6WHS±&2$DQDO\VLV
z 6WHS±&2$FRPSDULVRQ
z 6WHS±&2$DSSURYDO
z 6WHS±2UGHUVSURGXFWLRQGLVVHPLQDWLRQDQGWUDQVLWLRQ

0DULQH&RUSV3ODQQLQJ3URFHVV
 7KH0&33SURYLGHVFRPPDQGHUVDQGVWDIIVDWDOOOHYHOVDPHDQVWRRUJDQL]HDQGSODQWKHLUDFWLYLWLHV
WRWUDQVPLWSODQVWRVXERUGLQDWHXQLWVDQGWRVKDUHDFRPPRQXQGHUVWDQGLQJRIWKHPLVVLRQDQGLQWHQW7KH
0&33DSSOLHVDFURVVWKHUDQJHRIPLOLWDU\RSHUDWLRQV,WDSSOLHVHTXDOO\WRGHOLEHUDWHSODQQLQJDQGFRQWLQXRXV
SODQQLQJIRURQJRLQJRSHUDWLRQV$OWKRXJKOLVWHGVHTXHQWLDOO\XQLWVFDQFRQGXFWWKHVL[VWHSVRIWKH0&33
LQDGLIIHUHQWRUGHUJLYHQWKHGHPDQGVDQGFRQVWUDLQWVRIDQRSHUDWLRQDOHQYLURQPHQW7KLVLVHVSHFLDOO\WUXH
LQWKHMXQJOH ZKHUHWKHLQWHOOLJHQFHSLFWXUHLVRIWHQXQFOHDUDQGORJLVWLFVFRQVLGHUDWLRQVFDQVLJQLILFDQWO\
LPSDFWRSHUDWLRQV7KHVL[VWHSVRIWKH0&33
z 6WHS3UREOHPIUDPLQJ
z 6WHS&2$GHYHORSPHQW
z 6WHS&2$ZDUJDPH
z 6WHS&2$FRPSDULVRQDQGGHFLVLRQ
z 6WHS2UGHUVGHYHORSPHQW
z 6WHS7UDQVLWLRQ

,QWHOOLJHQFH3UHSDUDWLRQRIWKH%DWWOHILHOG%DWWOHVSDFH
 Intelligence preparation of the battlefieldLVWKHV\VWHPDWLFSURFHVVRIDQDO\]LQJWKHPLVVLRQYDULDEOHV
RI HQHP\ WHUUDLQ ZHDWKHU DQG FLYLO FRQVLGHUDWLRQV LQ DQ DUHD RI LQWHUHVW WR GHWHUPLQH WKHLU HIIHFW RQ
RSHUDWLRQV $73  7KH intelligence preparation of the battlespace LV WKH DQDO\WLFDO PHWKRGRORJLHV
HPSOR\HGE\WKH6HUYLFHVRUMRLQWIRUFHFRPSRQHQWFRPPDQGVWRUHGXFHXQFHUWDLQWLHVFRQFHUQLQJWKHHQHP\
HQYLURQPHQWWLPHDQGWHUUDLQ-3 7KH0DULQH&RUSVDPSOLILFDWLRQDGGVWKHV\VWHPDWLFFRQWLQXRXV
SURFHVVRIDQDO\]LQJWKHWKUHDWDQGHQYLURQPHQWLQDVSHFLILFJHRJUDSKLFDUHD0&537RGHVFULEH
WKHHIIHFWVRIWKHHQYLURQPHQWRQRSHUDWLRQVFRPPDQGHUVDQGVWDIIGHYHORSDPRGLILHGFRPELQHGREVWDFOH
RYHUOD\ 0&22 7KH modified combined obstacle overlay LV D MRLQW LQWHOOLJHQFH SUHSDUDWLRQ RI WKH
RSHUDWLRQDO HQYLURQPHQW SURGXFW XVHG WR SRUWUD\ WKH PLOLWDULO\ VLJQLILFDQW DVSHFWV RI WKH RSHUDWLRQDO
HQYLURQPHQW VXFK DV REVWDFOHV UHVWULFWLQJ PLOLWDU\ PRYHPHQW NH\ JHRJUDSK\ DQG PLOLWDU\ REMHFWLYHV
-36WDIIVXVHWKH0&22ZKHQGHYHORSLQJDQGDQDO\]LQJ&2$VLWLVDFULWLFDOWRROIRUGHWHUPLQLQJ
WKHDSSURSULDWHIRUFHIRUDJLYHQREMHFWLYH7KH0&22LVWKHILUVWVWHSLQDUUDQJLQJDFWLRQVLQERWKVSDFHDQG
WLPH WR GHWHUPLQH IHDVLELOLW\ :KHQ GHYHORSLQJ D 0&22 IRU MXQJOH RSHUDWLRQV FRPPDQGHUV FDUHIXOO\
FRQVLGHUWKDWGLVPRXQWHGIRUFHVZLOOOLNHO\XVHPRELOLW\FRUULGRUVDQGUHTXLUHJUHDWHUFRYHUDQGFRQFHDOPHQW
WKDQDUPRUHGIRUFHV7KH\DOVRUHFRJQL]HWKDWDOWKRXJKPRELOLW\FRUULGRUVPD\EHJHRJUDSKLFDOO\FORVHWR
HDFK RWKHU WKH MXQJOH¶V UHVWULFWLYH WHUUDLQ PD\ SUHYHQW GLVPRXQWHG IRUFHV IURP UDSLGO\ SURYLGLQJ PXWXDO
VXSSRUWEHWZHHQWKHVHFRUULGRUV,QUHODWLYHO\IODWMXQJOHVZLWKRXWVKDUSFKDQJHVLQHOHYDWLRQVWDIIVFDUHIXOO\
SODQWRFRQILUPWKDWPRELOLW\FRUULGRUVFDQVXSSRUWPRYHPHQW$OWKRXJKWHUUDLQLQWKHVHMXQJOHVPD\DSSHDU
XQUHVWULFWHGRQWRSRJUDSKLFPDSVGHQVHYHJHWDWLRQPD\VHYHUHO\LPSHGHPRYHPHQW$VVXFKFRPPDQGHUV
DQGVWDIIXVHDHULDODQGVDWHOOLWHLPDJHU\ZKHQDYDLODEOHWRVXSSRUWWKH,3%SURFHVVDQGGHYHORSDFFXUDWH
0&22V)RUPRUHLQIRUPDWLRQRQ,3%VHH$73

,QIRUPDWLRQ&ROOHFWLRQ
 7KHMXQJOHWHUUDLQDQGZHDWKHUSUHVHQWVLJQLILFDQWFKDOOHQJHVWRLQIRUPDWLRQFROOHFWLRQ7KHVL]HRIWKH
RSHUDWLRQDODUHDWUDIILFDELOLW\DQGVHYHUHZHDWKHUDIIHFWZKHQDQGKRZDVVHWVDUHGHSOR\HGDQGPD\GHJUDGH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

VHQVRU FDSDELOLWLHV $OWKRXJK VWDIIV KDYH UHVSRQVLELOLW\ IRU WHUUDLQ PDQDJHPHQW IRU DVVHW ORFDWLRQV
FRPPDQGHUV FDQ PLWLJDWH VRPH RI WKH FKDOOHQJHV DVVRFLDWHG ZLWK LQIRUPDWLRQ FROOHFWLRQ LQ WKH MXQJOH
&RPPDQGHUV LPSOHPHQW DJJUHVVLYH UHFRQQDLVVDQFH DQG VXUYHLOODQFH RSHUDWLRQV DQG GHOHJDWH LQIRUPDWLRQ
FROOHFWLRQ WDVNV WR ORZHU HFKHORQV :KHQ DVVLJQLQJ LQIRUPDWLRQ FROOHFWLRQ WDVNV WR ORZHU HFKHORQV
FRPPDQGHUV HQVXUH WKH WDVNHG XQLW FDQ PDQDJH WKH JHRJUDSKLF DUHDV GHVLJQDWHG IRU UHFRQQDLVVDQFH DQG
VXUYHLOODQFH 7KLV RIWHQ UHTXLUHV UHGXFLQJ WKH VL]H RI WKH ]RQH DUHD RU URXWH WR EH UHFRQQRLWHUHG 6HH
)0IRUPRUHLQIRUPDWLRQRQLQIRUPDWLRQFROOHFWLRQ
 *LYHQWKHFKDOOHQJHVWRLQIRUPDWLRQFROOHFWLRQLQWKHMXQJOHSURGXFLQJDQDFFXUDWHHQHP\VLWXDWLRQ
WHPSODWHLVFULWLFDOWRIDFLOLWDWHHIIHFWLYHSODQQLQJDQGGHFLVLRQPDNLQJ$situation templateLVDGHSLFWLRQRI
DVVXPHGDGYHUVDU\GLVSRVLWLRQVEDVHGRQWKDWDGYHUVDU\¶VSUHIHUUHGPHWKRGRIRSHUDWLRQVDQGWKHLPSDFWRI
WKHRSHUDWLRQDOHQYLURQPHQWLIWKHDGYHUVDU\VKRXOGDGRSWDSDUWLFXODUFRXUVHRIDFWLRQ-30DULQH
&RUSV DPSOLILFDWLRQ LV D VHULHV RI SURMHFWLRQV WKDW SRUWUD\ EDVHG RQ HQHP\ GRFWULQH WKH PRVW SUREDEOH
GLVSRVLWLRQDQGORFDWLRQRIHQHP\IRUFHVZLWKLQFRQVWUDLQWVLPSRVHGE\ZHDWKHUDQGWHUUDLQ0&53
7KHVLWXDWLRQWHPSODWHGHSLFWVWKHPRVWFULWLFDOSRLQWLQWKHRSHUDWLRQDVDJUHHGXSRQE\WKHFRPPDQGHUWKH
RSHUDWLRQV RIILFHU DQG WKH LQWHOOLJHQFH RIILFHU 6LWXDWLRQDO WHPSODWHV DGGUHVV WHUUDLQ PRELOLW\ FRUULGRUV
DUWLOOHU\UDQJHIDQVPRYHPHQWWLPHVEHWZHHQHQHP\UHVHUYHDVVHPEO\DUHDVDQGDGYDQFLQJIULHQGO\IRUFHV
DQGRWKHUUHODWHGLQWHOOLJHQFHYDULDEOHV

7DUJHWLQJ
 7DUJHWLQJGXULQJMXQJOHRSHUDWLRQVUHTXLUHVVSHFLDOSODQQLQJDQGWHFKQLTXHVDVUHVWULFWLYHWHUUDLQDQG
GHQVH YHJHWDWLRQ PD\ GHJUDGH RU OLPLW WDUJHW DFTXLVLWLRQ DVVHWV &ROODERUDWLRQ DFURVV WKH HQWLUH VWDII LV
QHFHVVDU\WRGHYHORSDWDUJHWLQJSODQWKDWDFFRXQWVIRUWKHMXQJOHWHUUDLQDQGLWVOLPLWDWLRQV7KHILUHVXSSRUW
RIILFHU DGYLVHV WKH RSHUDWLRQV RIILFHU RQ WKH DSSURSULDWH PXQLWLRQV DQG ILUH VXSSRUW ZHDSRQV V\VWHPV IRU
HIIHFWLYHILUHVLQWKHMXQJOH7KHLQWHOOLJHQFHRIILFHUDQGHQJLQHHURIILFHUDGYLVHWKHRSHUDWLRQVRIILFHURQWKH
HQYLURQPHQWDO FRQVLGHUDWLRQV DQG HIIHFWV RI WHUUDLQ RQ RSHUDWLRQV 2IWHQ YLHZHG DV LPSRUWDQW QDWXUDO
UHVRXUFHVFRPPDQGHUVFRQVLGHUWKHHQYLURQPHQWDOLPSDFWVRIHQJDJLQJWDUJHWVLQWKHMXQJOHDQGZKHWKHUWKH
WDUJHWLQJDFWLRQZLOODURXVHHQYLURQPHQWDORUFXOWXUDOVHQVLWLYLWLHV6HQVLWLYHORFDWLRQVRULQIUDVWUXFWXUHDUH
SODFHGRQWKHUHVWULFWHGWDUJHWOLVW6HH$73IRUPRUHLQIRUPDWLRQRQWDUJHWLQJ

5LVN0DQDJHPHQW'XULQJ-XQJOH2SHUDWLRQV
 7KHIRXUWKLQWHJUDWLQJSURFHVVFRPPDQGHUVXVHWRFRPPDQGDQGFRQWUROIRUFHVLVULVNPDQDJHPHQW
Risk managementLVWKHSURFHVVWRLGHQWLI\DVVHVVDQGFRQWUROULVNVDQGPDNHGHFLVLRQVWKDWEDODQFHULVN
FRVW ZLWK PLVVLRQEHQHILWV-3 0DULQH&RUSVDPSOLILFDWLRQLVWKH ILYHVWHSVRIULVN PDQDJHPHQWDUH
LGHQWLI\WKHKD]DUGVDVVHVVWKHKD]DUGVGHYHORSFRQWUROVDQGPDNHULVNGHFLVLRQLPSOHPHQWFRQWUROVDQG
VXSHUYLVHDQGHYDOXDWH0&53 &RPPDQGHUVFRQVLGHUDQGEDODQFHRSHUDWLRQDODQGHQYLURQPHQWDO
ULVNVDJDLQVWWKRVHULVNVZLWKPLVVLRQEHQHILWVWRGHWHUPLQHWKHLURSHUDWLRQDODSSURDFKDQGWDFWLFDOVROXWLRQV
LQWKHMXQJOHHQYLURQPHQWLQSXUVXLWRIWKHLUDVVLJQHGREMHFWLYHV&RPPDQGHUVFRQVLGHUWKHIROORZLQJIDFWRUV
ZKHQPLWLJDWLQJULVNGXULQJMXQJOHRSHUDWLRQV
z )RUFHVWUHQJWK
z )RUFHWDLORULQJWDVNRUJDQL]LQJ
z &DXVDOLWLHV
z &ROODWHUDOGDPDJH
z )UDWULFLGH
z 5LVNUHGXFWLRQPHDVXUHV

Force Strength
 :KHQIDFLQJSURVSHFWLYHMXQJOHRSHUDWLRQVFRPPDQGHUVFRQVLGHULIWKH\KDYHWKHQHFHVVDU\WURRSV
DQG FDSDELOLWLHV WR DFKLHYH WKH FRPPDQGHU¶V LQWHQW ZLWKLQ DFFHSWDEOH ULVN 0DMRU MXQJOH RSHUDWLRQV
SDUWLFXODUO\ODUJHVFDOHFRPEDWUHTXLUHDVLJQLILFDQWQXPEHURIFRPELQHGDUPVIRUFHV:KLOHRSHUDWLRQVPD\
QRWUHTXLUHFRQWUROOLQJWKHHQWLUHMXQJOHDUHDDFKLHYLQJDQGPDLQWDLQLQJUHODWLYHFRPEDWSRZHULVFULWLFDOWR
VXFFHVVIXORSHUDWLRQV,IFRPPDQGHUVODFNVXIILFLHQWIRUFHVWRFRQGXFWHIIHFWLYHRSHUDWLRQVWKH\PXVWDGMXVW
WKHLURSHUDWLRQDODSSURDFKDFFRUGLQJO\ UHTXHVWWKHQHFHVVDU\FDSDELOLWLHVWKURXJKWKH-)&RUGRERWK,Q

6HSWHPEHU $730&73& 

&KDSWHU

GHWHUPLQLQJZKHWKHUWKH\SRVVHVVDGHTXDWH IRUFHVWUHQJWKFRPPDQGHUVFRQVLGHUWKHTXDQWLW\DQGW\SHRI
IRUFHVUHTXLUHGWRVKDSHRSHUDWLRQDOHQYLURQPHQWVSUHYHQWFRQIOLFWSUHYDLOGXULQJODUJHVFDOHFRPEDWDQG
FRQVROLGDWHJDLQV&RPPDQGHUVPXVWDOVRHQVXUHVXIILFLHQWVXVWDLQPHQWDQGHQDEOLQJIRUFHVDUHDYDLODEOHWR
PDLQWDLQ WHPSR GXULQJ MXQJOH RSHUDWLRQV &RPPDQGHUV ZKR QHJOHFW VXVWDLQPHQW DQG HQDEOLQJ IRUFHV
MHRSDUGL]HWKHLURSHUDWLRQDOUHDFKDQGULVNHDUO\FXOPLQDWLRQ

Force Tailoring/Task Organizing

 &RPPDQGHUVPLWLJDWHULVNWKURXJKFDUHIXOIRUFHWDLORULQJIRUMXQJOHRSHUDWLRQVForce tailoringLVWKH
SURFHVVRIGHWHUPLQLQJWKHULJKWPL[RIIRUFHVDQGWKHVHTXHQFHRIWKHLUGHSOR\PHQWLQVXSSRUWRIDMRLQW
IRUFHFRPPDQGHU$'3$VERWKUHDG\XQLWVDQGWUDQVSRUWDWLRQDVVHWVDUHOLPLWHGFRPPDQGHUVPXVW
UHFRJQL]HWKHWUDGHRIIVEHWZHHQFDSDELOLWLHVDQGEDODQFHWKHIRUFHIORZZLWKLQDQDFFHSWDEOHOHYHORIULVN
)RUH[DPSOHFRPPDQGHUVZKRGHSOR\DSUHSRQGHUDQFHRIFRPEDWIRUFHVLQWRWKHDWHUHDUO\LQDQRSHUDWLRQ
WDNH FRQVLGHUDEOH ULVN UHJDUGLQJ WKH VXVWDLQPHQW DQG SURWHFWLRQ RI WKHVH IRUFHV &RQYHUVHO\ WRR PDQ\
VXVWDLQPHQW IRUFHV ZLWKRXW DGHTXDWH VHFXULW\ IRUFHV ULVN GHIHDW E\ WKH HQHP\ $V WKH\ WDLORU D IRUFH IRU
GHSOR\PHQW FRPPDQGHUV DVVHVV WKH HQYLURQPHQW WKH WKUHDW WKH WLPHOLQH DQG WKH FDSDELOLW\ IRU WKH
GHVLJQDWHG$2WRVXSSRUW86IRUFHV7KH\WKHQLGHQWLI\WKHDSSURSULDWHPL[RIFRPEDWIRUFHVVXVWDLQPHQW
XQLWV SURWHFWLRQ DVVHWV HQDEOHUV DQG KHDGTXDUWHUV WR PHHW WKH -)&¶V QHHGV $OWKRXJK WKHUH LV QR VLQJOH
VROXWLRQWRWDLORULQJDIRUFHIRUGHSOR\PHQWPDQ\MXQJOHVSRVVHVVOLPLWHGRUXQLPSURYHGDLUSRUWVVHDSRUWV
RUERWKDQGUHTXLUHWKHDWHURSHQLQJDQGVXVWDLQPHQWXQLWVHDUO\LQWKHIRUFHIORZWRVHWFRQGLWLRQVIRUIROORZ
RQFRPEDWXQLWV
 *HQHUDOO\OLJKWLQIDQWU\DQG62)FRKHVLYHO\LQWHJUDWHGZLWKDYLDWLRQILUHVXSSRUWDQGHQJLQHHUVDUH
WKHPRVWDSSURSULDWHFRPEDWIRUFHVIRUMXQJOHRSHUDWLRQV7KHQHHGWRFOHDUHQHP\IRUFHVIURPWKHMXQJOH
HQYLURQPHQWKROGKDUGZRQWHUUDLQDQGLQWHUDFWZLWKWKHSRSXODWLRQUHTXLUHVVLJQLILFDQWGLVPRXQWHGLQIDQWU\
IRUPDWLRQV $UP\0DULQH&RUSVIRUFHVFRQGXFWLQJMXQJOH RSHUDWLRQVDUHWDLORUHGWRLQFOXGHD ODUJHUOLJKW
LQIDQWU\ FRPSRQHQW $GGLWLRQDO DYLDWLRQ IRUFHV DUH LQYDOXDEOH IRU SURMHFWLQJ VXSSRUWLQJ DQG VXVWDLQLQJ
FRPEDW SRZHU LQWR DUHDV QRW DFFHVVLEOH E\ JURXQG GXH WR WHUUDLQ 62)¶V DELOLW\ WR FRQGXFW VSHFLDO
UHFRQQDLVVDQFHSUHSDUDWLRQRIWKHHQYLURQPHQWDQGGLUHFWDFWLRQPDNHWKHPSDUWLFXODUO\YDOXDEOHGXULQJ
MXQJOHRSHUDWLRQV62)LQFOXGHPLOLWDU\LQIRUPDWLRQVXSSRUWRSHUDWLRQV0,62DQGFLYLODIIDLUVIRUFHV
 0DULQH &RUSV IRUFHV DUH WDLORUHG WKURXJK WKHLU H[LVWLQJ WDVN RUJDQL]DWLRQ WR PHHW D FRPEDWDQW
FRPPDQGHU RU -)&¶V QHHGV 2UJDQL]HG DV 0DULQH DLUJURXQG WDVN IRUFHV 0$*7)V WKH 0DULQH &RUSV
SURYLGHVWKH-)&ZLWKDQDSSURSULDWHO\VFDOHGLQWHJUDWHGFRPELQHGDUPVIRUFHWKDWLQFOXGHVDLUJURXQGDQG
ORJLVWLFXQLWVXQGHUDVLQJOHFRPPDQGHU'LIIHULQJE\VL]HDQGFDSDFLW\IRUVXVWDLQHGRSHUDWLRQV0$*7)V
DUHRUJDQL]HGDVHLWKHU0DULQHH[SHGLWLRQDU\IRUFHV0DULQHH[SHGLWLRQDU\EULJDGHV0DULQHH[SHGLWLRQDU\
XQLWVRUVSHFLDOSXUSRVH0$*7)V)LJXUHSUHVHQWVWKHYDULRXV0$*7)VDQGKRZWKH\DUHRUJDQL]HG
DQG DXJPHQWHG WR VXSSRUW WKH -)& 6HH 0&53  IRU PRUH LQIRUPDWLRQ RQ 0DULQH &RUSV WDVN
RUJDQL]DWLRQ

Casualties
 $OWKRXJK FDVXDOWLHV FDQ RFFXU GXULQJ DQ\ RSHUDWLRQ FDVXDOW\ UDWHV DUH KLJKHVW GXULQJ RIIHQVLYH
RSHUDWLRQV LQ WKH MXQJOH 7KH MXQJOH¶V KHDY\ YHJHWDWLRQ DQG WRSRJUDSK\ DIIRUG KLJK OHYHOV RI FRYHU DQG
FRQFHDOPHQWDQGSURYLGHDPDUNHGDGYDQWDJHWRWKHGHIHQGHU+LJKHUFDVXDOWLHVRFFXUDPRQJWURRSVRQWKH
RIIHQVHZKHUHREVHUYHGDVVDXOWVDUHRIWHQWKHRQO\WDFWLFDORSWLRQ'HIHQGHUVJHQHUDOO\KDYHWKHDELOLW\WR
ZLWKGUDZXQGHUFRYHUDQGFRQFHDOPHQWDQGFRQVHTXHQWO\VXIIHUORZHUFDVXDOWLHVIURPGLUHFWDQGLQGLUHFWILUH
$GGLWLRQDOO\ WKH UHTXLUHPHQW WR HYDFXDWH FDVXDOWLHV RYHU ODUJH XQLPSURYHG DUHDV DQG XQGHU GLIILFXOW
HQYLURQPHQWDO FRQGLWLRQV PDNH PHGLFDO HYDFXDWLRQ SODQQLQJ UHVRXUFLQJ DQG SRVLWLRQLQJ LQFUHGLEO\
LPSRUWDQW DQG FKDOOHQJLQJ 'XH WR WKH GLIILFXOWLHV RI JURXQG HYDFXDWLRQ LQ MXQJOH RSHUDWLRQV D JUHDWHU
HPSKDVLVRQDLUHYDFXDWLRQLVQHFHVVDU\,QDUHDVZKHUHWKHMXQJOHLVWRRGHQVHWRSUHSDUHDODQGLQJ]RQHD
KHOLFRSWHU HTXLSSHG ZLWK D KRLVW RU MXQJOH SHQHWUDWRU PD\ EH QHFHVVDU\ WR H[WUDFW FDVXDOWLHV 6HH
$73IRUPRUHLQIRUPDWLRQRQFDVXDOW\HYDFXDWLRQ
 &RPPDQGHUV FRQGXFWLQJ VWDELOLW\ RSHUDWLRQV UHFRJQL]H WKH UHODWLRQVKLS EHWZHHQ FDVXDOWLHV ERWK
PLOLWDU\DQGFLYLOLDQDQGVWUDWHJLFREMHFWLYHV:KLOHVWDELOLW\RSHUDWLRQVDUHDVVRFLDWHGZLWKDORZHUFDVXDOW\
ULVN WKDQ RIIHQVLYH RU GHIHQVLYH RSHUDWLRQV FDVXDOWLHV PD\ DGYHUVHO\ LPSDFW WKH VXFFHVV RI WKH VWDELOLW\
PLVVLRQ7KHDFFXPXODWLRQRIFDVXDOWLHVGXULQJSURWUDFWHGVWDELOLW\RUOLPLWHGFRQWLQJHQF\RSHUDWLRQVKDVWKH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

SRWHQWLDOWRQHJDWLYHO\LQIOXHQFHGRPHVWLFDQGLQWHUQDWLRQDORSLQLRQ,IFRPPDQGHUVDVVHVVWKHFDVXDOW\ULVN
DV KLJK WKH\ PXVW HQVXUH WKDW WKHLU KLJKHU KHDGTXDUWHUV XQGHUVWDQGV WKHLU DVVHVVPHQW DQG WKDW PLVVLRQ
REMHFWLYHVDUHZRUWKWKHDQWLFLSDWHGULVNRUWKH\PXVWDSSO\DGGLWLRQDOUHVRXUFHVWRIXUWKHUPLWLJDWHWKHULVN

)LJXUH0DULQHDLUJURXQGWDVNIRUFH

Collateral Damage
 :KHQFRQVLGHULQJULVNWRIRUFHVFRPPDQGHUVPXVWDOVRDQDO\]HWKHULVNWRWKHDUHD¶VSRSXODWLRQWKH
QDWXUDO HQYLURQPHQW DQG LQIUDVWUXFWXUH ZLWK UHVSHFW WR WLPH 7KLV FRPSUHKHQVLYH DQDO\VLV LQFOXGHV WKH
VHFRQGDQGWKLUGRUGHUHIIHFWVRIVLJQLILFDQWFLYLOLDQFDVXDOWLHVGHJUDGDWLRQWRWKHQDWXUDOHQYLURQPHQWDQG
LQIUDVWUXFWXUHGDPDJH&ROODWHUDOGDPDJHLQIOXHQFHV ZRUOGDQGGRPHVWLFRSLQLRQDQG KDVWKHSRWHQWLDOWR
DIIHFW RQJRLQJ RSHUDWLRQV WKHUHIRUH FRPPDQGHUV ZLOO OLNHO\ EH KHOG WR D KLJKHU GHJUHH RI UHVWUDLQW DQG
SUHFLVLRQLQWKHLURSHUDWLRQV&ROODWHUDOGDPDJHDOVRLQIOXHQFHVWKHSRVWFRQIOLFWSK\VLFDOHQYLURQPHQWDQG
DWWLWXGHVRIWKHSRSXODWLRQ
 1HJDWLYH SHUFHSWLRQV FDXVHG E\ FROODWHUDO DQG HQYLURQPHQWDO GDPDJH FDQ WDNH JHQHUDWLRQV WR
RYHUFRPH 'HVWUR\LQJ D SRSXODWHG DUHD SLHFH RI FULWLFDO LQIUDVWUXFWXUH RU GDPDJLQJ DQ HQYLURQPHQWDOO\
VHQVLWLYHDUHDIRUDWDFWLFDOUHTXLUHPHQWLVJHQHUDOO\QRWDQDFFHSWDEOHRSWLRQIRUFRPPDQGHUV7KHGLVSHUVHG
DQGUHODWLYHO\ORZGHQVLW\RIFLYLOLDQSRSXODWLRQVLQVRPHMXQJOHDUHDVGRHVQRWQHJDWHWKHSRVVLELOLW\WKDW
HYHQ DFFXUDWH DWWDFNV ZLWK SUHFLVLRQ ZHDSRQV PD\ LQMXUH QRQFRPEDWDQWV :KLOH SUHSDUDWRU\ 0,62 DQG
QRQOHWKDOPHDVXUHVFDQJUHDWO\UHGXFHFLYLOLDQFDVXDOWLHVDQGLQIUDVWUXFWXUHGDPDJHVRPHGHJUHHRIFROODWHUDO
GDPDJHPD\EHXQDYRLGDEOH,WLVSRVVLEOHWKDWFROODWHUDOGDPDJHUHVXOWLQJIURPWDFWLFDOVXFFHVVFRXOGUXQ
FRXQWHUWRQDWLRQDODQGVWUDWHJLFREMHFWLYHV

Fratricide
 &RPPDQGHUV ZHLJK WKH ULVN RI IUDWULFLGH ZKHQ GHVLJQLQJ DQG H[HFXWLQJ MXQJOH RSHUDWLRQV 7KH
UHVWULFWLYH WHUUDLQ DQG OLPLWHG QXPEHU RI /2&V WHQG WR FRPSDUWPHQWDOL]H IRUFHV DQG LQFUHDVH WKH ULVN RI
IUDWULFLGH$VVPDOOXQLWVSDWUROZLGHDUHDVRIMXQJOHWKH\PD\ORVHVLWXDWLRQDODZDUHQHVVUHJDUGLQJWKHVL]H
DQG ORFDWLRQ RI IULHQGO\ IRUFHV 7KLV LV FRPSRXQGHG E\ WKH FRPPXQLFDWLRQV DQG QDYLJDWLRQ FKDOOHQJHV
DVVRFLDWHGZLWKGHQVHMXQJOHWHUUDLQ/LQHRIVLJKWFRPPXQLFDWLRQVV\VWHPVRIWHQVXIIHUUHGXFHGUDQJHVDQG
WKH WKLFN MXQJOH FDQRS\ PD\ GHJUDGH *OREDO 3RVLWLRQLQJ 6DWHOOLWH *36HQDEOHG QDYLJDWLRQ DLGV

6HSWHPEHU $730&73& 

&KDSWHU

&RPPDQGHUVLQFUHDVHIUDWULFLGHDZDUHQHVVDQGSUHYHQWLRQPHDVXUHVGXULQJMXQJOHRSHUDWLRQV)UDWULFLGHPD\
EHFDXVHGE\²
z ,QHIIHFWLYHRUGHJUDGHGFRPPXQLFDWLRQVHTXLSPHQW
z 7KHLQDELOLW\WRUHFRJQL]HQHDUDQGIDUUHFRJQLWLRQVLJQDOV
z 6KRUWHQJDJHPHQWUDQJHVFRXSOHGZLWKWKHQHHGIRUTXLFNUHDFWLRQ
z /RFDWLRQHUURUVFDXVHGE\FKDOOHQJLQJWHUUDLQDQGGHJUDGHGRUGLVUXSWHGQDYLJDWLRQGHYLFHV

 7KHULVNRIIUDWULFLGHPD\DOVRLQFUHDVHZKHQ$UP\0DULQH&RUSVIRUFHVFRQGXFWRSHUDWLRQVZLWKRU
ZLWKLQSUR[LPLW\RI62)IRUHLJQVHFXULW\IRUFHVNQRZQDV)6)VRUKRVWQDWLRQIRUFHV7KH-)&HVWDEOLVKHV
DMRLQWVSHFLDORSHUDWLRQVDUHDWRPDLQWDLQXQLW\RIFRPPDQGFUHDWHIUHHGRPRIDFWLRQDQGFOHDUO\GHILQH
DXWKRULWLHVZKHQ62)DUHSUHVHQWLQWKHMRLQWRSHUDWLRQVDUHD

Note.6HH$SSHQGL['IRUPRUHLQIRUPDWLRQRQIUDWULFLGHSUHYHQWLRQGXULQJMXQJOHRSHUDWLRQV

Risk Reduction Measures

 &RPPDQGHUV DVVHVV SRWHQWLDO KD]DUGV DQG GHYHORS FRQWUROV WR HOLPLQDWH RU UHGXFH WKH ULVNV WR
$UP\0DULQH&RUSVIRUFHV0LWLJDWLQJULVNEHJLQVZLWKWKRURXJKO\XQGHUVWDQGLQJWKHMXQJOHHQYLURQPHQW
DQGLWVHIIHFWVRQRSHUDWLRQVDQGIRUFHV2WKHUPHDVXUHVWRPLWLJDWHULVNLQFOXGH²
z 'HWDLOHGSODQQLQJWRLQFOXGHWKRURXJK,3%DQGDSSURSULDWHEUDQFKSODQVDQGVHTXHOV
z ,QWHJUDWHGLQIRUPDWLRQFROOHFWLRQDQGGLVVHPLQDWLRQ
z $FOHDUPLVVLRQDQGLQWHQWZLWKDZHOOGHILQHGHQGVWDWH
z 6XIILFLHQWUHVHUYHVDQGURWDWLRQRIIRUFHV
z (IIHFWLYHRSHUDWLRQVVHFXULW\236(&PHDVXUHV
z (IIHFWLYHSRSXODFHDQGUHVRXUFHVFRQWUROPHDVXUHV
z &OHDUO\ GHILQHG 52( WKDW DUH XSGDWHG DV WKH FKDUDFWHU RI RSHUDWLRQV FKDQJHV 52( DOORZ
FRPPDQGHUV WR VDWLVIDFWRULO\ FRQWURO RSHUDWLRQV DQG PLQLPL]H FROODWHUDO GDPDJH DQG IUDWULFLGH
ZLWKRXWXQUHDVRQDEO\UHVWULFWLQJVXERUGLQDWHV¶DELOLW\WRDFFRPSOLVKDVVLJQHGPLVVLRQV
z 3URSHU WDUJHWLQJ SURFHGXUHV LQFOXGLQJ HIIHFWLYH ILUH VXSSRUW FRRUGLQDWLQJ PHDVXUHV DQG D
VWUHDPOLQHGOHJDOUHYLHZRIWDUJHWVSRVLWLYHLGHQWLILFDWLRQRIWDUJHWVDQGFRQWUROOHGFOHDUDQFHRI
ILUHV 7KH JRDO LV WR DFKLHYH SUHFLVH \HW UDSLG HIIHFWV ZLWK ERWK OHWKDO DQG QRQOHWKDO PHDQV
3RVLWLYHDLUWRJURXQGFRPPXQLFDWLRQVDUHHVVHQWLDOWRHIIHFWLYH&$6
z :HOOV\QFKURQL]HG LQIRUPDWLRQ RSHUDWLRQV WKDW HQJDJH DQG LQIRUP WKH KRVWQDWLRQ SRSXODFH
WKURXJKWKHGXUDWLRQRIRSHUDWLRQV
z 5HVSRQVLYHDQGIOH[LEOHMXQJOHVXVWDLQPHQW
z 6XIILFLHQWFRQWUROPHDVXUHVDWHFKHORQDORQJZLWKVWDQGDUGPDUNLQJDQGLGHQWLILFDWLRQWHFKQLTXHV
WKDWDGGUHVVOLPLWHGYLVLELOLW\FRQFHUQVIRUERWKDLUDQGJURXQGIRUFHV&RPPDQGHUVHQVXUHWKDW
DOOVXERUGLQDWHXQLWVWKRURXJKO\GLVVHPLQDWHDQ\DSSURYHGQRQVWDQGDUGUHIHUHQFHV\VWHPV

.QRZOHGJH0DQDJHPHQW
 Knowledge managementLVWKHSURFHVVRIHQDEOLQJNQRZOHGJHIORZWRHQKDQFHVKDUHGXQGHUVWDQGLQJ
OHDUQLQJDQGGHFLVLRQPDNLQJ$'3Knowledge managementLVWKHLQWHJUDWLRQRISHRSOHDQGSURFHVVHV
HQDEOHG E\ WHFKQRORJ\ WR IDFLOLWDWH WKH H[FKDQJH RI RSHUDWLRQDOO\ UHOHYDQW LQIRUPDWLRQ DQG H[SHUWLVH WR
LQFUHDVHRUJDQL]DWLRQDOSHUIRUPDQFH0&53 'HVSLWHWKHPRELOHFKDUDFWHURIMXQJOHRSHUDWLRQVDQG
WKH ODFN RI LQIRUPDWLRQ LQIUDVWUXFWXUH FRPPDQGHUV GHYHORS DQG LPSOHPHQW PHWKRGV IRU FROOHFWLQJ DQG
VKDULQJLQIRUPDWLRQDWWKHSDFHRIRSHUDWLRQV:KHQNQRZOHGJHPDQDJHPHQWLQIUDVWUXFWXUHLVOLPLWHGVLPSOH
SURFHGXUHVVXFKDVGHEULHIVFDQEHXVHGWRVKDUHLQIRUPDWLRQERWKYHUWLFDOO\DQGODWHUDOO\6LPSOHSURFHGXUHV
DUH RIWHQ WKH PRVW HIIHFWLYH DQG FDQ EH HDVLO\ PRGLILHG WR PHHW HQYLURQPHQWDO FRQVWUDLQWV )RU H[DPSOH
LQIRUPDWLRQ FROOHFWHG IURP SDWURO GHEULHIV FDQ EH WUDQVPLWWHG YLD IUHTXHQF\ PRGXODWLRQ NQRZQ DV )0
FRPPXQLFDWLRQVWRKLJKHUKHDGTXDUWHUVIRUGLVWULEXWLRQWRRWKHUVPDOOXQLWVRSHUDWLQJLQWKHDUHD
 $VIRUFHVDGDSWWKHLU773IRUMXQJOHRSHUDWLRQVWKH\FROOHFWEHVWSUDFWLFHVGXULQJDIWHUDFWLRQUHYLHZV
DQGVKDUHWKHVHOHVVRQVZLWKWKHLUKLJKHUKHDGTXDUWHUVVXERUGLQDWHIRUFHVDQGRWKHUXQLWVLQWKH$26WDIIV

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

VKRXOGVXEPLWWKHVHOHVVRQVWRWKH&HQWHUIRU$UP\/HVVRQV/HDUQHGDWKWWSVFDOODUP\PLOWRHQVXUHWKH
ZLGHVWGLVVHPLQDWLRQRXWVLGHWKHWKHDWHURIRSHUDWLRQV 6HH$73IRUPRUHLQIRUPDWLRQRQNQRZOHGJH
PDQDJHPHQW

1(7:25.6 ,1)250$7,21 $1' &20081,&$7,2166<67(06

 &RPPDQGHUV UHO\ RQ QHWZRUNV DQG LQIRUPDWLRQ V\VWHPV WR FRPPDQG HIIHFWLYHO\ 1HWZRUNV HQDEOH
VXFFHVVIXO RSHUDWLRQV &RPPDQGHUV GHWHUPLQH WKHLU LQIRUPDWLRQ UHTXLUHPHQWV DQG IRFXV WKHLU VWDIIV DQG
RUJDQL]DWLRQVRQXVLQJQHWZRUNVWRPHHWWKHVHUHTXLUHPHQWV
 ,QPDQ\LQVWDQFHVWKHLQIRUPDWLRQV\VWHPVDYDLODEOHWRWKHFRPPDQGHUGLUHFWO\DIIHFWWKHVSHHGDQG
DFFXUDF\RIWKHFRPPDQGDQGFRQWUROFRPSRQHQWVFRPPDQGHUVFDQOHYHUDJHLQIRUPDWLRQV\VWHPVDQGEULQJ
WKHPWREHDURQHPHUJLQJVLWXDWLRQVDQGFULWLFDOLVVXHV+RZHYHUWKHMXQJOHFDQFKDOOHQJHLQIRUPDWLRQDQG
FRPPXQLFDWLRQV V\VWHPV /DUJH GLVWDQFHV EHWZHHQ XQLWV GHQVH IROLDJH DQG WKH VLJQLILFDQW YHUWLFDO UHOLHI
SUHYDOHQW LQ PDQ\ MXQJOHV FRXSOHG ZLWK WKH SRZHU FRQVWUDLQWV RI PDQSRUWDEOH UDGLRV LPSHGH UDGLR
FRPPXQLFDWLRQV LQ WKH MXQJOH 3UREOHPV ZLWK WDFWLFDO FRPPXQLFDWLRQV LPSDLU WKH DELOLW\ WR PDLQWDLQ D
FRPPRQ RSHUDWLRQDO SLFWXUH JLYH RUGHUV DQG JXLGDQFH UHTXHVW VXSSRUW RU FRRUGLQDWH DQG V\QFKURQL]H
HOHPHQWV RI WKH FRPELQHG DUPV WHDP 7KH XVH RI PLVVLRQ RUGHUV DQG FRPPDQGHU¶V LQWHQW LV FULWLFDO WR
UHPDLQLQJHIIHFWLYHLQDGHJUDGHGFRPPXQLFDWLRQVHQYLURQPHQWUHJDUGOHVVRIWKHVRXUFHRIWKHGHJUDGDWLRQ
 2YHUFRPLQJ WKH FKDOOHQJHV DVVRFLDWHG ZLWK FRPPXQLFDWLRQV LQ WKH MXQJOH UHTXLUHV XQLWV WR HLWKHU
LQFUHDVHWKHPHDQVRILQIRUPDWLRQFROOHFWLRQDQGWUDQVPLVVLRQGHFUHDVHWKHGHPDQGIRULQIRUPDWLRQRUERWK
)LJXUHRQSDJHGHSLFWVWKHUHODWLRQVKLSEHWZHHQLQIRUPDWLRQPHDQVDQGLQIRUPDWLRQGHPDQG2WKHU
PHWKRGVIRURYHUFRPLQJFKDOOHQJHVRIFRPPXQLFDWLQJLQWKHMXQJOHLQFOXGH²
z 7KHXVHRIUHWUDQVPLVVLRQDQGUHOD\VLWHVZKLFKLQFOXGH8$6V
z 7KHXVHRIDLUERUQHFRPPDQGSRVWVVDWHOOLWHFRPPXQLFDWLRQVKLJKIUHTXHQF\UDGLRVDQGRWKHU
UHGXQGDQWFRPPXQLFDWLRQVSODWIRUPVDQGV\VWHPV
z &DUHIXOSRVLWLRQLQJRIFRPPDQGHUVFRPPDQGSRVWVDQGDQWHQQDVWRWDNH DGYDQWDJH RIMXQJOH
WHUUDLQIHDWXUHV
z 'HWDLOHGDQDO\VLVDQGFRPPXQLFDWLRQVSODQQLQJZKHQH[SDQGLQJRUVKLIWLQJDQ$2

9LVXDO&RPPXQLFDWLRQDQG0DUNLQJV
 9LVXDO VLJQDOV DUH DQ\ PHDQV RI FRPPXQLFDWLRQ WKDW UHTXLUH VLJKW DQG FDQ EH XVHG WR WUDQVPLW
SUHDUUDQJHG PHVVDJHV UDSLGO\ RYHU VKRUW GLVWDQFHV 7KLV LQFOXGHV WKH GHYLFHV DQG PHDQV XVHG IRU WKH
UHFRJQLWLRQDQGLGHQWLILFDWLRQRIIULHQGO\IRUFHV7KHPRVWFRPPRQW\SHVRIYLVXDOVLJQDOVLQFOXGHKDQGDQG
DUPIODJS\URWHFKQLFPLUURUDQGJURXQGWRDLUVLJQDOV7URRSVFDQXVHFKHPLFDOOLJKWVWLFNVIODVKOLJKWV
DQGIODUHVIRUYLVXDOVLJQDOLQJXQGHUOLPLWHGYLVLELOLW\FRQGLWLRQV
 9LVXDOPDUNLQJVERWKGD\DQGQLJKWDVVLVWLQFRPPDQGDQGFRQWURO9LVXDOPDUNLQJ623VLQGLFDWH
XQLW ORFDWLRQV DQG RWKHU HVVHQWLDO LQIRUPDWLRQ WKDW DOORZ XQLWV WR FRPPXQLFDWH ZKHQ WUDQVLWLQJ $2V DQG
HQDEOHJHQHUDOVLWXDWLRQDODZDUHQHVV9LVXDOPDUNLQJVFDQDOVRPLWLJDWHIUDWULFLGHLQFLGHQWVUHVXOWLQJIURP
WKH ORVV RI UDGLR FRPPXQLFDWLRQV SRRU WDUJHW LGHQWLILFDWLRQ RU QDYLJDWLRQDO HUURUV *LYHQ WKH FORVH
HQJDJHPHQWUDQJHVDQGWKHSRWHQWLDOIRUVXUSULVHVWDQGDUGL]HGYLVXDOUHFRJQLWLRQVLJQDOVDUHDQLPSRUWDQW
IUDWULFLGHPLWLJDWLRQPHDVXUHZKHQFRQGXFWLQJMXQJOHRSHUDWLRQV
 7URRSV UHJXODUO\ XVH KDQGDQG DUPVLJQDOV LQ DOO W\SHV RI RSHUDWLRQV :KHQ XVHG LQ WKH MXQJOH
6ROGHUV0DULQHV PD\ KDYH WR DGMXVW KDQG DQG DUP VLJQDOV WR DFFRXQW IRU GHQVH YHJHWDWLRQ DQG OLPLWHG
YLVLELOLW\
 ,QPRVWYLVLELOLW\FRQGLWLRQVXQLWVFDQXVHS\URWHFKQLFV+RZHYHUFHUWDLQFRORUVRIVPRNHRUIODUHV
KDYHOLPLWHGXVHEHFDXVHWKH\EOHQGLQZLWKYHJHWDWLRQJUHHQRURIIHUOLWWOHFRQWUDVWZLWKIRJRUKD]HZKLWH
&DUHIXOVHOHFWLRQRIFRORUVVXFKDVUHGRU\HOORZZKLFKFRQWUDVWZLWKWKHEDFNJURXQGFRORURIWKHMXQJOH
LQFUHDVHV WKH HIIHFWLYH UDQJH RI S\URWHFKQLF VLJQDOV 8QLWV FDQ DOVR DVVLJQ PHDQLQJ WR VSHFLILF FRORUV RI
S\URWHFKQLFV DQG VPRNH 8QLWV PXVW XVH FDXWLRQ ZKHQ HPSOR\LQJ S\URWHFKQLFV LQ WKH MXQJOH DV WKH WKLFN
FDQRS\PD\SUHYHQWVWDUFOXVWHUVDQGSDUDFKXWHIODUHVIURPIXQFWLRQLQJSURSHUO\8QLWVPXVWDOVRFRQVLGHU
WKDWWKHXVHRIS\URWHFKQLFVFDQUHYHDOWKHORFDWLRQRI86IRUFHVWRWKHHQHP\WKHUHE\PDNLQJLWGLIILFXOWWR

6HSWHPEHU $730&73& 

&KDSWHU

DFKLHYHVXUSULVH)XUWKHUPRUHLIWKHHQHP\XQGHUVWDQGVWKHPHDQLQJRIWKHS\URWHFKQLFVWKH\PD\XVHWKHP
DVSDUWRIDGHFHSWLRQSODQ)RUPRUHLQIRUPDWLRQRQYLVXDOVLJQDOVVHH7&

)LJXUH2YHUFRPLQJMXQJOHFRPPXQLFDWLRQVFKDOOHQJHV

$XGLEOH&RPPXQLFDWLRQ
 $XGLEOHFRPPXQLFDWLRQPHDQVLQFOXGHERWKYRLFHFRPPXQLFDWLRQDQGGHYLFHVVXFKDVZKLVWOHVKRUQV
DQGS\URWHFKQLFV6ROGHUV0DULQHVXVHDXGLEOHVLJQDOVWRDWWUDFWDWWHQWLRQWUDQVPLWSUHDUUDQJHGPHVVDJHV
WULJJHUDFWLRQRUVSUHDGDODUPV7KH\DUHJRRGRQO\IRUVKRUWGLVWDQFHV%DWWOHQRLVHZHDWKHUWHUUDLQDQG
YHJHWDWLRQUHGXFHWKHUDQJHDQGUHOLDELOLW\RIDXGLEOHFRPPXQLFDWLRQ/LNHS\URWHFKQLFVWKHXVHRIDXGLEOH
FRPPXQLFDWLRQVGHYLFHVPD\UHYHDOWKHORFDWLRQRI86IRUFHVDQGIRUIHLWWKHHOHPHQWRIVXUSULVH$XGLEOH
VLJQDOVPXVWEHVLPSOHWRDYRLGPLVXQGHUVWDQGLQJVDQGDUHXVXDOO\SUHVFULEHGLQWKHXQLW623

0HVVHQJHU&RPPXQLFDWLRQ
 :KHQ WURRSV KDYH QR RWKHU PHWKRGV DYDLODEOH WKH\ FDQ XVH PHVVHQJHUV WR FRPPXQLFDWH EHWZHHQ
VHSDUDWHGXQLWV+RZHYHUWKLVPHWKRGRIWHQFDUULHVVLJQLILFDQWULVNDVWKHPHVVHQJHUPD\EHLQWHUFHSWHGDQG
WKHFRPPXQLFDWLRQFRPSURPLVHGE\WKHHQHP\$GGLWLRQDOO\WKHGLIILFXOWWHUUDLQDQGODFNRI/2&VPDNH
FRPPXQLFDWLQJE\JURXQGPHVVHQJHULQWKHMXQJOHGLIILFXOWDQGVORZ9HKLFOHVZLOOOLNHO\EHOLPLWHGWRWKH
IHZURDGVLQWKHDUHDZKLOHGLVPRXQWHGPHVVHQJHUVZLOOKDYHWRQDYLJDWHFKDOOHQJLQJWHUUDLQDQGREVWDFOHV
$QDOWHUQDWLYHLVWRVHQGFRPPXQLFDWLRQE\DLUKRZHYHUWKLVWRRPD\EHGLIILFXOWJLYHQWKHODFNRIDYDLODEOH
DLUFUDIW WKH VFDUFLW\ RI ODQGLQJ ]RQHV DQG LQFOHPHQW WURSLFDO ZHDWKHU 8QLWV PXVW H[HUFLVH FDXWLRQ ZKHQ
GHOLYHULQJ PHVVDJHV E\ DLU DV DYLDWLRQ DFWLYLW\ DLGV WKH HQHP\ LQ ORFDWLQJ IULHQGO\ IRUFHV :KHQ XVLQJ D
PHVVHQJHUFRPPDQGHUVZULWHFRQFLVHFRPSOHWHDQGFOHDUPHVVDJHV8WLOL]DWLRQRIHQFU\SWLRQWHFKQLTXHV
FDQPLWLJDWH236(&FRQFHUQV

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

5DGLR&RPPXQLFDWLRQV
 5DGLR FRPPXQLFDWLRQV DUH QRUPDOO\ WKH IDVWHVW DQG HDVLHVW ZD\ IRU WDFWLFDO OHDGHUV DQG WURRSV WR
FRPPXQLFDWH(IIHFWLYHUDGLRFRPPXQLFDWLRQVLQWKHMXQJOHUHTXLUH²
z 8VHRIUHWUDQVPLVVLRQVDQGUDGLRUHOD\V
z &RQWLQXRXVSUHYHQWLYHPDLQWHQDQFH
z &RPPXQLFDWLRQVVHFXULW\&206(&
z 7UDLQHGRSHUDWRUV

 7KHHIIHFWLYHQHVVRIUDGLRFRPPXQLFDWLRQVLVUHGXFHGLQMXQJOHRSHUDWLRQV9HU\KLJKIUHTXHQF\DQG
XOWUDKLJKIUHTXHQF\UDGLRVIUHTXHQF\PRGXODWLRQUDGLRVLQFOXGHGDUHSDUWLFXODUO\OLPLWHGE\GHQVHIROLDJH
DQGWHUUDLQWKDWREVWUXFWWUDQVPLVVLRQV,WLVQRWXQXVXDOIRUIUHTXHQF\PRGXODWLRQUDGLRUDQJHWREHUHGXFHG
E\WRSHUFHQWLQWKHMXQJOH
 6DWHOOLWHFRPPXQLFDWLRQVSURYLGHDQHIIHFWLYHPHDQVRIFRPPXQLFDWLRQZKHQOLQHRIVLJKWFDQQRWEH
PDLQWDLQHG+RZHYHUVDWHOOLWHFRPPXQLFDWLRQVUHTXLUHDFOHDUYLHZRIWKHVN\DWWKHSURSHUD]LPXWKDQG
HOHYDWLRQWRHVWDEOLVKDVLJQDOZLWKDFRPPXQLFDWLRQVVDWHOOLWHDQGWKLVFDQEHFKDOOHQJLQJWRDFKLHYHWKURXJK
WKHWKLFNMXQJOHFDQRS\$GGLWLRQDOO\WKHODUJHQXPEHURIXVHUVDQGOLPLWHGIUHTXHQFLHVFDQQHJDWLYHO\DIIHFW
VDWHOOLWHEDVHGFRPPXQLFDWLRQVDYDLODELOLW\DWHFKHORQ

Note.)RUIXUWKHULQIRUPDWLRQRQWDFWLFDOUDGLRVUHIHUWR$73)RUIXUWKHULQIRUPDWLRQRQ
VDWHOOLWH FRPPXQLFDWLRQV UHIHU WR $73  )RU D IXUWKHU LQIRUPDWLRQ RQ ILHOG H[SHGLHQW
DQWHQQD WHFKQLTXHV UHIHU WR )0  )RU IXUWKHU LQIRUPDWLRQ RQ WDFWLFDO UDGLRV UHIHU WR
$730&53%1773$)7736ROGLHUV0DULQHVVKRXOGUHIHUWRDOO
DSSOLFDEOH WHFKQLFDO PDQXDOV IRU VSHFLILF SUHYHQWLYH PDLQWHQDQFH SURFHGXUHV IRU WDFWLFDO UDGLR
HTXLSPHQW

 &RPPDQGHUV PD\ XVH PLOLWDU\ ZLUH FLYLOLDQ WHOHSKRQH DQG FRPPXQLFDWLRQV LQIUDVWUXFWXUH DQG
FRPPHUFLDO FRPPXQLFDWLRQV LQIUDVWUXFWXUH WR FRPPXQLFDWH LQ WKH MXQJOH 7KH ORFDO FRPPXQLFDWLRQV
LQIUDVWUXFWXUH RIIHUV DQ H[SHGLHQW PHDQV IRU HVWDEOLVKLQJ DQ HPHUJHQF\ FRPPXQLFDWLRQV QHWZRUN RU IRU
EXLOGLQJUHGXQGDQF\LQWRWKHPLOLWDU\FRPPXQLFDWLRQVSODQ+RZHYHUWKLVPHWKRGFRPHVZLWKVLJQLILFDQW
ULVNDQGVKRXOGQHYHUEHXVHGDVWKHSULPDU\PHDQVRIFRPPXQLFDWLRQIRU86IRUFHV/RFDOQHWZRUNVDQG
LQIUDVWUXFWXUH DUH RIWHQ XQVHFXUH DQG PD\ EH HDVLO\ FRPSURPLVHG &RPPDQGHUV PDNH HYHU\ HIIRUW WR
LPSOHPHQW HIIHFWLYH &206(& PHDVXUHV ZKHQ XVLQJ ORFDO FRPPXQLFDWLRQV LQIUDVWUXFWXUH IRU PLOLWDU\
FRPPXQLFDWLRQ $OWKRXJK RQO\ XVHG LQ HPHUJHQFLHV ORFDO FRPPXQLFDWLRQV LQIUDVWUXFWXUH DQG FHOOXODU
QHWZRUNV PD\ EH WKH RQO\ PHDQV IRU FRPPXQLFDWLQJ ZLWK KRVWQDWLRQ IRUFHV FLYLOLDQ OHDGHUV
QRQJRYHUQPHQWDO RUJDQL]DWLRQV 1*2V DQG LQWHUJRYHUQPHQWDO RUJDQL]DWLRQV ,*2V %HFDXVH WKHVH
QHWZRUNV DQG LQIUDVWUXFWXUH DUH RIWHQ XQVHFXUH 6ROGLHUV0DULQHV SUDFWLFH VWULFW 236(& WR SUHYHQW EHLQJ
FRPSURPLVHG E\ WKH HQHP\ :KHQ GLVFXVVLQJ PDWWHUV RYHU XQVHFXUHG FRPPXQLFDWLRQV QHWZRUNV WURRSV
DYRLGPHQWLRQLQJVSHFLILFGDWHVWLPHVORFDWLRQVDQGFDSDELOLWLHV
 &206(&DQG236(&DUHFRPSOHPHQWDU\SUDFWLFHVIRUSURWHFWLQJLQIRUPDWLRQ:KLOHFRPPXQLFDWLQJ
RYHU &206(& SURWHFWHG RU HQFU\SWHG GHYLFHV HQDEOHV PRUH GHWDLOHG GLVFXVVLRQ RI RSHUDWLRQV 236(&
HQVXUHVWKDWHVVHQWLDORUSURWHFWHGLQIRUPDWLRQLVQRWH[SRVHGWRWKHHQHP\$VVXFKFRPPDQGHUVHVWDEOLVK
V\VWHPVDQGSUDFWLFHVIRUXVLQJERWK&206(&DQG236(&GXULQJDOOFRPPXQLFDWLRQ

&200$1'32676
 &RPPDQGHUV RUJDQL]H WKHLU VWDIIV DQG RWKHU FRPSRQHQWV RI WKH FRPPDQG DQG FRQWURO V\VWHP LQWR
FRPPDQGSRVWVWRDVVLVWWKHPLQHIIHFWLYHO\FRQGXFWLQJRSHUDWLRQV$command postLVDXQLWKHDGTXDUWHUV
ZKHUHWKHFRPPDQGHUDQGVWDIISHUIRUPWKHLUDFWLYLWLHV)0$ command post LVDXQLW¶VRUVXEXQLW¶V
KHDGTXDUWHUV ZKHUH WKH FRPPDQGHU RU GHVLJQDWHG UHSUHVHQWDWLYH DQG WKH VWDII SHUIRUP WKHLU DFWLYLWLHV
0&53 &RPPDQG SRVWV DVVLVW FRPPDQGHUV LQ XQGHUVWDQGLQJ YLVXDOL]LQJ GHVFULELQJ GLUHFWLQJ
OHDGLQJDQGDVVHVVLQJRSHUDWLRQV
 &RPPDQGHUVHIIHFWLYHO\HPSOR\WKHLUYDULRXVFRPPDQGSRVWVDQGUHWUDQVPLVVLRQVWDWLRQVWRIDFLOLWDWH
FRPPXQLFDWLRQVZLWKIRUZDUGDQGUHDUDUHDVDVPDQHXYHUXQLWVDUHXQOLNHO\WREHVWDWLRQDU\IRUH[WHQGHG

6HSWHPEHU $730&73& 

&KDSWHU

SHULRGVLQWKHMXQJOH+LJKHUHFKHORQPDLQFRPPDQGSRVWVPD\EHHVWDEOLVKHGRQHOHYDWHGWHUUDLQVXFKDV
KLOOWRSVWRHQDEOHFRPPXQLFDWLRQVDFURVVDODUJH$2%HFDXVHWKH\DUHODUJHUUHPDLQVWDWLRQDU\IRUORQJHU
SHULRGVSURGXFHDVLJQLILFDQWHOHFWURQLFVLJQDWXUHDQGPD\ODFNDGHTXDWHFRQFHDOPHQWWKHVHFRPPDQGSRVWV
DUHPRUHVXVFHSWLEOHWRHQHP\GHWHFWLRQDQGDWWDFN&RPPDQGHUVLGHQWLI\DVHFXULW\IRUFHIRUWKHFRPPDQG
SRVWDQGHQVXUHLWLVORFDWHGRQGHIHQVLEOHWHUUDLQ&RPPDQGHUVSODQIRUDQGPLWLJDWHWKHHIIHFWVRIHQHP\
LQGLUHFWILUHRQWKHFRPPDQGSRVW/RZHUHFKHORQDQGWDFWLFDOFRPPDQGSRVWVDUHVPDOOHUDQGPRUHPRELOH
WKDQODUJHUPDLQFRPPDQGSRVWV,QWKHMXQJOHWKHVHFRPPDQGSRVWVFDSLWDOL]HRQWHUUDLQDQGFRQFHDOPHQW
WR SUHYHQW HQHP\ GHWHFWLRQ DQG DWWDFN )RU PRUH LQIRUPDWLRQ RQ FRPPDQG SRVW RUJDQL]DWLRQV DQG
UHVSRQVLELOLWLHVVHH)0DQG0&'3DQG0&:3

029(0(17$1'0$1(89(50$1(89(5:$5),*+7,1*
)81&7,21
 7KH movement and maneuver warfighting function LV WKH UHODWHG WDVNV DQG V\VWHPV WKDW PRYH DQG
HPSOR\ IRUFHV WR DFKLHYH D SRVLWLRQ RI UHODWLYH DGYDQWDJH RYHU WKH HQHP\ DQG RWKHU WKUHDWV $'3 
ManeuverLVHPSOR\PHQWRIIRUFHVLQWKHRSHUDWLRQDODUHDWKURXJKPRYHPHQWLQFRPELQDWLRQZLWKILUHVDQG
LQIRUPDWLRQ WR DFKLHYH D SRVLWLRQ RI DGYDQWDJH LQ UHVSHFW WR WKH HQHP\ -3  7KH 0DULQH &RUSV¶
DGGHQGXPIRUPDQHXYHULVWKHPRYHPHQWRIIRUFHVIRUWKHSXUSRVHRIJDLQLQJDQDGYDQWDJHRYHUWKHHQHP\
0DQHXYHU LV RQH RI WKH ZDUILJKWLQJ IXQFWLRQV 0&53  &RPPDQGHUV XVH PRYHPHQW DQG
PDQHXYHUPDQHXYHUIRUPDVVLQJWKHHIIHFWVRIFRPEDWSRZHUWRDFKLHYHVXUSULVHVKRFNDQGPRPHQWXP
(IIHFWLYHPDQHXYHUUHTXLUHVFORVHFRRUGLQDWLRQZLWKILUHVDQGVXVWDLQPHQWVXSSRUW

02%,/,7<
 0RELOLW\ LQ WKH MXQJOH LV UHVWULFWHG E\ WKLFN YHJHWDWLRQ VWHHS JUDGHV DQG VHYHUH WHUUDLQ 9HKLFXODU
PRELOLW\ ZKHWKHU ZKHHOHG RU WUDFNHG LV DOPRVW FRPSOHWHO\ UHVWULFWHG WR URDGV DQG WUDLOV 'LVPRXQWHG
PRYHPHQW WKURXJK WKLFN MXQJOH YHJHWDWLRQ SURGXFHV HDV\ WR VSRW WUDFNV WKH HQHP\ FDQ IROORZ 7KH KLJK
WHPSHUDWXUHDQGKXPLGLW\DOVRUHGXFHUDWHVRIPDUFKIRUGLVPRXQWHGIRUFHV*HQHUDOO\MXQJOHV KLQGHUWKH
PRYHPHQWRIODUJHIRUPDWLRQV
 +HDY\SUHFLSLWDWLRQRUPRQVRRQVFDQIXUWKHUUHVWULFWPRELOLW\LQWKHMXQJOH3UHFLSLWDWLRQFDQFUHDWH
QHZ ZDWHU REVWDFOHV LQFUHDVH WKH GHSWK DQG UDWH RI IORZ RI H[LVWLQJ ERGLHV RI ZDWHU DQG WXUQ QRUPDOO\
WUDIILFDEOH FURVVFRXQWU\ URXWHV LQWR LPSDVVLEOH TXDJPLUHV &RPPDQGHUV FRQGXFW D URXWH UHFRQQDLVVDQFH
EHIRUHLQLWLDWLQJPRYHPHQWWRFRQILUPURXWHVDUHSDVVDEOH:KHQSRVVLEOH VDWHOOLWHRUDHULDOLPDJHU\DLGV
WKLVUHFRQQDLVVDQFHFRQILUPLQJWKHVWDWXVRIZHWDQGGU\JDSVDORQJWKHURXWHDQGWKHSUHVHQFHRUODFNRI
XVDEOHEULGJHV
 3RRU FURVVFRXQWU\ PRELOLW\ OLPLWHG /2&V DQG D ODFN RI EULGJHV FDQ FDQDOL]H PRYHPHQW DQG
FRPSDUWPHQWDOL]HIRUFHV5RDGVDUHXVXDOO\VFDUFHSRRUO\PDLQWDLQHGDQGSULPLWLYH7KHRULHQWDWLRQRIWKH
H[LVWLQJURDGVPD\QRWVXSSRUWWDFWLFDODQGRSHUDWLRQDOPRYHPHQWDQGPDQHXYHUPDQHXYHUIXUWKHUOLPLWLQJ
WKHLUXWLOLW\/LPLWHGLQIUDVWUXFWXUHUHGXFHVKDUGHQHGFURVVLQJSRLQWVRYHURUWKURXJKZDWHUIHDWXUHV(IIHFWLYH
VWDIIVXQGHUVWDQGWKHHIIHFWVRIMXQJOHWHUUDLQDQGDOORFDWHWKHQHFHVVDU\UHVRXUFHVRULPSOHPHQWFUHDWLYHDQG
LQQRYDWLYHVROXWLRQVWRDFKLHYHWKHLUFRPPDQGHU¶VLQWHQW

0HWKRGVRI0RYHPHQW
 $LU PRYHPHQW DLU DVVDXOW DQG DLUERUQH RSHUDWLRQV DUH PHWKRGV RI PRYHPHQW FRQGXFLYH WR MXQJOH
RSHUDWLRQV7KH\IDFLOLWDWHWKHUDSLGPRYHPHQWRIVPDOOXQLWVDFURVVZLGHDUHDVDQGFDQEHXVHGWRFRQGXFWD
YHUWLFDO HQYHORSPHQW H[HFXWH D UDLG SURYLGH UHLQIRUFHPHQWV SXUVXH RU EORFN D ZLWKGUDZLQJ HQHP\ DQG
VHL]HNH\WHUUDLQ$Qair assaultLVWKHPRYHPHQWRIIULHQGO\DVVDXOWIRUFHVE\URWDU\ZLQJRUWLOWURWRUDLUFUDIW
WRHQJDJHDQGGHVWUR\HQHP\IRUFHVRUWRVHL]HDQGKROGNH\WHUUDLQ-30DULQH&RUSVDPSOLILFDWLRQLV
RSHUDWLRQV LQ ZKLFK DLU DVVDXOW IRUFHV FRPEDW FRPEDW VXSSRUW DQG FRPEDW VHUYLFH VXSSRUW XVLQJ WKH
ILUHSRZHUPRELOLW\DQGWRWDOLQWHJUDWLRQRIDVVDXOWVXSSRUWDVVHWVLQWKHLUJURXQGRUDLUUROHVPDQHXYHURQ
WKHEDWWOHILHOGXQGHUWKHFRQWURORIWKHPLVVLRQFRPPDQGHUWRSURYLGHPRELOLW\DQGILUHSRZHURIWKHDVVLJQHG
PLVVLRQ 0&53  7KHVH RSHUDWLRQV DOORZ WKH FRPPDQGHU WR PDQHXYHU UDSLGO\ DFFHOHUDWH WKH
PRPHQWXP RI DQ HQJDJHPHQW DQG DFKLHYH D SRVLWLRQ RI WHPSRUDU\ DGYDQWDJH ZLWKRXW UHTXLULQJ JURXQG
/2&V +RZHYHU DLU PRYHPHQWV DQG DLU DVVDXOWV RIWHQ UHTXLUH KHOLFRSWHU ODQGLQJ ]RQHV ZKLOH DLUERUQH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

RSHUDWLRQVUHTXLUHDFOHDUGURS]RQH7KHVHUHTXLUHPHQWVPD\OLPLWWKHIHDVLELOLW\RIDLUERUQHDQGDLUDVVDXOW
RSHUDWLRQV LQ WKH MXQJOH $LU PRYHPHQW DLU DVVDXOW DQG DLUERUQH RSHUDWLRQV UHTXLUH H[WHQVLYH SODQQLQJ
V\QFKURQL]DWLRQ DQG WKH DSSOLFDWLRQ RI VLJQLILFDQW FRPEDW SRZHU WKH\ DUH JHQHUDOO\ KLJK ULVN PLVVLRQV
7KHVH RSHUDWLRQV FDQ EH DIIHFWHG E\ FKDQJLQJ ZHDWKHU FRQGLWLRQV HQYLURQPHQWDO KD]DUGV DQG HQHP\ DLU
GHIHQVHFDSDELOLWLHV6HH)0$730&73%DQG0&:3>0&:3@IRUJUHDWHU
GHWDLOUHJDUGLQJPRYHPHQWDQGPDQHXYHUPDQHXYHUDQGDYLDWLRQRSHUDWLRQV
 $Q amphibious operation LVD PLOLWDU\ RSHUDWLRQ ODXQFKHG IURP WKH VHD E\ DQ DPSKLELRXV IRUFH WR
FRQGXFW ODQGLQJ IRUFH RSHUDWLRQV ZLWKLQ WKH OLWWRUDOV -3  $PSKLELRXV RSHUDWLRQV XVH PDQHXYHU
SULQFLSOHVWRWUDQVLWLRQUHDG\WRILJKWFRPEDWIRUFHVIURPWKHVHDWRVKRUHLQRUGHUWRDFKLHYHDSRVLWLRQRI
DGYDQWDJHRYHUWKHHQHP\RUWRJDLQDFFHVVWRDQ$2E\HVWDEOLVKLQJDORGJPHQW'XULQJFRPEDWRSHUDWLRQV
PDQHXYHU²LQ FRQMXQFWLRQ ZLWK ILUHV RUJDQLF DQG VXSSRUWLQJ²LV HVVHQWLDO WR JDLQLQJ DFFHVV ZKHUH WKH
HQHP\OHDVWH[SHFWVLW
 &HUWDLQDPSKLELRXVRSHUDWLRQVDVVDXOWVDQGUDLGVVHHNWRH[SORLWWKHHOHPHQWRIVXUSULVHDQGFDSLWDOL]H
RQHQHP\ZHDNQHVVE\SURMHFWLQJDQGDSSO\LQJFRPEDWSRZHUSUHFLVHO\ZKHUHLWLVOHDVWH[SHFWHG8QLWVFDQ
FRQGXFW RWKHU W\SHV RI DPSKLELRXV RSHUDWLRQV PRUH GHOLEHUDWHO\ DV IHLQWV RU GHPRQVWUDWLRQV $PSKLELRXV
RSHUDWLRQVUHTXLUHWKHXQLTXHDELOLW\WRRSHUDWHDFURVVDLUODQGDQGVHDDQGDUHFKDUDFWHUL]HGDVWKHPRVW
FRPSOH[ DQG GLIILFXOW RI PLOLWDU\ RSHUDWLRQV 8QLWV FDQ FRQGXFW ILYH NLQGV RI DPSKLELRXV RSHUDWLRQV
DPSKLELRXVUDLGDPSKLELRXVGHPRQVWUDWLRQDPSKLELRXVDVVDXOWDPSKLELRXVZLWKGUDZDODQGDPSKLELRXV
IRUFH VXSSRUW WR FULVLV UHVSRQVH DQG RWKHU RSHUDWLRQV 0DQ\ MXQJOHV FRQWDLQ OLWWRUDO DUHDV FRQGXFLYH WR
DPSKLELRXVRSHUDWLRQV6HH-3DQG$73IRUJUHDWHUGHWDLOUHJDUGLQJDPSKLELRXVRSHUDWLRQV
 8QLWVFRQGXFWULYHULQHRSHUDWLRQVLQWKHMXQJOHWRWUDQVSRUWWURRSVDQGHTXLSPHQWDFURVVZDWHUREVWDFOHV
RUDORQJZDWHUZD\VLQVXSSRUWRIPRYHPHQWDQGPDQHXYHUPDQHXYHU5LYHULQHRSHUDWLRQVLQFOXGHWKHXVHRI
ZDWHUFUDIWDQGDPSKLELRXVYHKLFOHV8VXDOO\$UP\DQG1DY\IRUFHVXQGHUWDNHULYHULQHRSHUDWLRQVLQHLWKHU
MRLQWRULQGHSHQGHQWRSHUDWLRQV1DY\ULYHULQHIRUFHVFRQWULEXWHRSHUDWLRQDOGHSWKIRULQODQGSRZHUSURMHFWLRQ
E\FRQGXFWLQJWKHIROORZLQJPLVVLRQVPDULWLPHVHFXULW\RSHUDWLRQVFRQWURORIULYHUVDQGLQODQGZDWHUZD\V
GHQLDORIHQHP\XVHRIULYHUVDQGLQODQGZDWHUZD\VDQGOLPLWHGRIIHQVLYHDQGGHIHQVLYHRSHUDWLRQV5LYHULQH
IRUFHVSURYLGHDGGLWLRQDODVVHWVWRWKHFRPPDQGHUWRVKDSHWKH$2DVZHOODVRYHUFRPHZDWHUREVWDFOHVVXFK
DVODNHVULYHUVKDUERUVDQGGHOWDVLQERWKOLWWRUDODQGLQODQGUHJLRQV 0DULQHVHTXLSSHGZLWKDPSKLELRXV
$$9 DQG $&9 FDQ XVH WKHLU YHKLFOHV WR VZLP ULYHUV DQG ZDWHU REVWDFOHV HQFRXQWHUHG GXULQJ MXQJOH
RSHUDWLRQV 6HH $73  DQG 0&53 $ >0&:3 @ IRU JUHDWHU GHWDLO UHJDUGLQJ ULYHULQH
RSHUDWLRQV
 -XQJOHDPSKLELRXVDQGULYHULQHFRQVLGHUDWLRQVLQFOXGH²
z 9HJHWDWLRQ
z 6HFXULW\
z 5HFRQQDLVVDQFH

 7KHKHDY\YHJHWDWLRQDORQJWKHEDQNVRILQODQGZDWHUZD\VRIIHUVH[FHOOHQWFRQFHDOPHQWDQGHQKDQFHV
WKHHIIHFWLYHQHVVRIDPEXVKHVDJDLQVWZDWHUFUDIW7URRSOHDGHUSODQFRXQWHUDPEXVKPHDVXUHVLQFRQMXQFWLRQ
ZLWKDOOZDWHUPRYHPHQWV6WHHSVOLSSHU\ULYHUEDQNVFRXSOHGZLWKGHQVHYHJHWDWLRQRIWHQPDNHFRPPLWWLQJ
WKHZDWHUERUQHIRUFHLQDFRRUGLQDWHGDVVDXOWODQGLQJH[WUHPHO\GLIILFXOW
 6HFXULW\ PHDVXUHV GXULQJ WKH PRYHPHQW SKDVH DORQJ D MXQJOH ZDWHUZD\ LQFOXGH SURSHU ZDWHUFUDIW
IRUPDWLRQVDQGDLUREVHUYDWLRQZKHQSRVVLEOH)LUHVXSSRUWWRLQFOXGHVXUIDFHWRVXUIDFHDLUWRVXUIDFHDQG
QDYDOVXUIDFHILUHPXVWEHSUHSODQQHGIRUDOOZDWHUPRYHPHQWV
 /HDGHUV SODQ IRU ZDWHUZD\ UHFRQQDLVVDQFH /LNH URXWH UHFRQQDLVVDQFH WURRSV FRQGXFW ZDWHUZD\
UHFRQQDLVVDQFH WR GHWHUPLQH WKH GHSWK WUDIILFDELOLW\ DQG WKH LPSDFW RI WKH WLGH RQ ZDWHUZD\V 7KLV
LQIRUPDWLRQ LV FULWLFDO LQ GHWHUPLQLQJ WKH IHDVLELOLW\ RI XVLQJ ULYHUV DQG RWKHU LQODQG ERGLHV RI ZDWHU IRU
PRYHPHQWDQGPDQHXYHUPDQHXYHU:DWHUZD\UHFRQQDLVVDQFHLGHQWLILHVWKHW\SHDQGVL]HRIZDWHUFUDIWWKDW
FDQ RSHUDWH RQ WKH UHFRQQRLWHUHG ZDWHUZD\ :KLOH DHULDO UHFRQQDLVVDQFH \LHOGV D FRQVLGHUDEOH DPRXQW RI
LQIRUPDWLRQ OHDGHUV VXSSOHPHQW LW ZLWK UHFRQQDLVVDQFH E\ ERDW HVSHFLDOO\ LQ DUHDV ZKHUH YHJHWDWLRQ KDV
RYHUJURZQWULEXWDULHV
 *DSFURVVLQJVDUHDPRQJWKHPRVWFULWLFDOFRPSOH[DQGULVN\FRPELQHGDUPVRSHUDWLRQV7KHVL]HRI
WKHJDSDVZHOODVWKHHQHP\DQGIULHQGO\VLWXDWLRQGLFWDWHVWKHPHWKRGXVHGWRFURVVWKHJDS*DSFURVVLQJV

6HSWHPEHU $730&73& 

&KDSWHU

E\ GLVPRXQWHG IRUFHV LQ WKH MXQJOH FDQ VLPSO\ LQYROYH FRQVWUXFWLQJ D URSH EULGJH RU LPSURYLVHG UDIWLQJ
WHFKQLTXHVVHH$SSHQGL[%6XFFHVVIXOH[HFXWLRQRIJDSFURVVLQJE\PRXQWHGIRUFHVLQWKHMXQJOHUHTXLUHV
VLJQLILFDQWDQGVSHFLDOL]HGHQJLQHHULQJDVVHWV+DVW\ULYHUFURVVLQJVZLWKH[LVWLQJEULGJHVRUFDXVHZD\VLQ
WKHMXQJOHUHTXLUHFDUHIXOLQVSHFWLRQE\HQJLQHHUVWRGHWHUPLQHWKHLQWHJULW\DQGORDGEHDULQJFDSDFLW\RIWKH
EULGJH$GGLWLRQDOFRQVLGHUDWLRQVIRUJDSFURVVLQJLQWKHMXQJOHLQFOXGH²
z &DUHIXOSODQQLQJRIOLPLWHGDQGXQLPSURYHG/2&VWRHQVXUHWKHSODFHPHQWRIVWDQGDUGEULGJLQJ
DVVHWV-XQJOH/2&VPD\QRWVXSSRUWWKHJURXQGPRYHPHQWRIEULGJLQJDVVHWVWRWKHLUUHTXLUHG
ORFDWLRQDQGFRPPDQGHUVFRQVLGHUXVLQJDYLDWLRQLIDYDLODEOHWROLIWEULGJLQJHTXLSPHQW
z $ UHTXLUHPHQW IRU HQJLQHHUV WR FOHDU DQG LPSURYH /2&V WR VXSSRUW WKH PRYHPHQW RI VWDQGDUG
EULGJLQJDVVHWVWRWKHFURVVLQJVLWHZKHQDYLDWLRQDVVHWVDUHXQDYDLODEOH
z &OHDUDQFH RI EUXVK DQG GHQVH YHJHWDWLRQ RQ ERWK WKH QHDU DQG IDU VLGHV RI WKH FURVVLQJ VLWH WR
VXSSRUWWKHHPSODFHPHQWRIEULGJLQJDVVHWV
z (QJLQHHUUHFRQQDLVVDQFHRIHQWU\DQGH[LWEDQNVWRHQVXUHWKHVRLODWWKHFURVVLQJVLWHFDQVXSSRUW
WKHHVWDEOLVKPHQWRIDEULGJH
z 7KH XVH RI IORDW EULGJHV UDIWV VWDQGDUG ULEERQ EULGJHV DQG LPSURYHG ULEERQ EULGJHV IRU ULYHU
FURVVLQJRSHUDWLRQV
z 7KH XVH RI QRQVWDQGDUG EULGJLQJ WR FURVV SHUVRQQHO DQG HTXLSPHQW DFURVV JDSV LQ WKH MXQJOH
5HDGLO\DYDLODEOHQDWXUDOPDWHULDOVPD\EHXVHGWRFRQVWUXFWQRQVWDQGDUGEULGJHV
z )RUGLQJDVDQH[SHGLHQWPHWKRGIRUFURVVLQJVWUHDPV+RZHYHUWKHSUHSDUDWLRQRIHQWUDQFHVDQG
H[LWV PD\EH H[WUHPHO\GLIILFXOWDQGIRUGVGHWHULRUDWHUDSLGO\XQGHUWUDIILFDQG KHDY\UDLQIDOO
%HIRUHIRUGLQJHQJLQHHUVLQVSHFWWKHERWWRPRIWKHVWUHDPRUULYHUWRHQVXUHLWFDQVXSSRUWWKH
ZHLJKWRIFURVVLQJYHKLFOHV

-XQJOH0RYHPHQW7HFKQLTXH
 'HQVH YHJHWDWLRQDQGUHVWULFWLYHWHUUDLQPD\UHTXLUHPRGLILHGPRYHPHQWWHFKQLTXHVIRUVPDOOXQLWV
RSHUDWLQJLQWKHMXQJOH)LJXUHSUHVHQWVDPXOWLSOHFROXPQPRYHPHQWWHFKQLTXHIRUGLVPRXQWHGIRUFHV
RSHUDWLQJLQFRQILQHGRUGHQVHO\YHJHWDWHGPRELOLW\FRUULGRUV

)LJXUH-XQJOHPRYHPHQWWHFKQLTXH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

Note.7KH SRVLWLRQRIWKHSODWRRQOHDGHUDQGDGMDFHQWVTXDGOHDGHUVGXULQJ PRYHPHQW PDNHLW

HDVLHUWRH[SDQGWKHIRUPDWLRQ¶VIODQNVDWKDOWVWRIRUPDKDVW\SHULPHWHU7KHORFDWLRQVRIWKH
PDFKLQHJXQWHDPVHQDEOHWKHUDSLGDVVLJQPHQWRIVHFXULW\VHFWRUVRIWHQWRWKHIURQWDQGUHDURI
WKHPRYHPHQWIRUPDWLRQGXULQJKDOWV7KHIRUPDWLRQVKRZQGHSLFWVD6ROGLHU0DULQHSODWRRQ
KRZHYHULWFDQEHHIIHFWLYHO\XVHGZLWKOHVVHUQXPEHUV

 8QLWVFRQVLGHUWKHIROORZLQJZKHQHPSOR\LQJWKHMXQJOHPRYHPHQWWHFKQLTXH
z 7KHOHDGILUHWHDPRIWKHOHDGVTXDGDVVXPHVDPRGLILHGZHGJHIRUPDWLRQ
z 7KH VXSSRUW HOHPHQWV PD\ PRYH ZLWK WKH KHDGTXDUWHUV HOHPHQW RU EH DWWDFKHG WR D VTXDG
GHSHQGLQJXSRQOLNHO\WKUHDWV
z (DFKVTXDGPDLQWDLQVDQD]LPXWKDQGSDFH
z 8QLWVXSGDWHDQGUHKHDUVHEDWWOHGULOOVWRDFFRXQWIRUWKHMXQJOHPRYHPHQWWHFKQLTXH
z 7KHMXQJOHPRYHPHQWWHFKQLTXHZRUNVEHVWGXULQJGD\OLJKWPRYHPHQW

 $GYDQWDJHVRIWKHMXQJOHPRYHPHQWWHFKQLTXH
z &HQWUDOL]HGFRQWURO
z 5DSLGGHSOR\PHQWWRPDQHXYHURUUHLQIRUFH
z $ GHJUHHVHFXULW\GXULQJPRYHPHQWDQGDWKDOWV
z 7KHXVHRIPXOWLSOHFROXPQVDOORZVWKHGHOHJDWLRQRIQDYLJDWLRQUHVSRQVLELOLWLHVZLWKOLWWOHULVNIRU
GHYLDWLRQ
z 'LUHFWILUHDVVHWVSRVLWLRQHGIRUUDSLGUHDFWLRQWRDIODQNDPEXVK
z 6SHHGDQGHDVHRIPRYHPHQW

 'LVDGYDQWDJHVRIWKHMXQJOHPRYHPHQWWHFKQLTXH
z /LPLWHGGLUHFWILUHDVVHWVWRWKHIURQWRUUHDU
z &ROXPQIRUPDWLRQYXOQHUDEOHWRLQGLUHFWILUH
z &HQWHUVTXDGDQGKHDGTXDUWHUVHOHPHQWFDQQRWUHWXUQILUHUDSLGO\GXULQJDPEXVK

&2817(502%,/,7<
 &RPPDQGHUVFRQGXFWFRXQWHUPRELOLW\WDVNVWRGHQ\DQHQHP\IUHHGRPRIPRYHPHQWDQGPDQHXYHU
&RXQWHUPRELOLW\WDVNVHQKDQFHWKHUHVWULFWLYHHIIHFWVRIQDWXUDOREVWDFOHVZLWKWKHXVHRIPDQPDGHREVWDFOHV
WRFKDOOHQJHRUSUHYHQWHQHP\PRYHPHQWDQGPDQHXYHU'XHWRWKHUHVWULFWHGPRELOLW\LQKHUHQW LQMXQJOH
RSHUDWLRQV HYHQ VPDOO DQG UHODWLYHO\ VLPSOH REVWDFOHV WKDW DUH SURSHUO\ HPSODFHG DQG REVHUYHG FDQ
HIIHFWLYHO\ FRQWURO HQHP\ PRYHPHQW &DUHIXO WHUUDLQ DQDO\VLV HQVXUHV WKDW QDWXUDOO\ UHVWULFWLYH WHUUDLQ LV
UHLQIRUFHGZLWKREVWDFOHVWRIL[WXUQEORFNRUGLVUXSWHQHP\PRYHPHQWDFFRUGLQJWRWKHFRPPDQGHU¶VSODQ
 &RXQWHUPRELOLW\ RSHUDWLRQV KHOS LVRODWH WKH EDWWOHILHOG DQG SURWHFW DWWDFNLQJ IRUFHV IURP HQHP\
FRXQWHUDWWDFN&RPPDQGHUVH[SORLWWHUUDLQWKDWRIIHUVQDWXUDOIODQNSURWHFWLRQWRDQDWWDFNLQJIRUFHVXFKDV
ULYHUVRUULGJHOLQHV7URRSVFDQHDVLO\UHLQIRUFHVRPHQDWXUDOWHUUDLQIHDWXUHV²VZDPSVFDQDOVODNHVIRUHVWV
DQGHVFDUSPHQWV²IRUIODQNVHFXULW\8QLWVSURWHFWWKHLUIODQNVE\GHVWUR\LQJEULGJHVHPSODFLQJPLQHILHOGV
DQG XVLQJ VHOIGHVWUXFWLQJ DQG VHOIGHDFWLYDWLQJ VFDWWHUDEOH PXQLWLRQV WR GHQ\ URDGV DQG WUDLOV
&RXQWHUPRELOLW\RSHUDWLRQVLQWKHMXQJOHUHTXLUHUDSLGHPSODFHPHQWDQGIOH[LELOLW\HQJLQHHUVXSSRUWPXVW
NHHSSDFHZLWKDGYDQFLQJPDQHXYHUIRUFHVDQGEHSUHSDUHGWRHPSODFHREVWDFOHV
 0LQHILHOGVZLUHREVWDFOHVDQGDQWLYHKLFOHGLWFKHVUHTXLUHVLJQLILFDQWUHVRXUFHVWRHPSODFHKRZHYHU
WKH\FDQEHH[WUHPHO\HIIHFWLYH/RFDOPDWHULDOVIRUH[SHGLHQWREVWDFOHVDUHXVXDOO\SOHQWLIXOLQWKHMXQJOH
&RPPDQGHUV DQG SODQQHUV HQVXUH WKDW FRPSHWLQJ GHPDQGV IRU HQJLQHHULQJ DVVHWV GR QRW FRPSURPLVH
VXUYLYDELOLW\HIIRUWV%HFDXVHDQWLYHKLFOHGLWFKHVFDQQRWEHFRQFHDOHGWKH\PXVWEHGXJVRWKH\GRQRWRXWOLQH
DGHIHQVLYHIURQWRUIODQN7URRSVQHHGWRFRYHUDQWLYHKLFOHGLWFKHVE\ILUHVDQGUHLQIRUFHWKHPZLWKRWKHU
REVWDFOHVWRSUHYHQWHQHP\LQIDQWU\XVLQJWKHPDVUHDG\PDGHWUHQFKHV,QVXLWDEOHWHUUDLQDQWLWDQNGLWFKHV
VKRXOGH[FHHGWKHYHUWLFDOVWHSRIHQHP\PDLQEDWWOHWDQNV
 7KHIDPLO\RIVFDWWHUDEOHPLQHV)$6&$0ZKLFKLQFOXGHVYROFDQRJURXQGDQGDLUGHOLYHUHGPLQHV
WKH PRGXODU SDFN PLQH V\VWHP DUWLOOHU\GHOLYHUHG PLQHV DQG DLUGHOLYHUHG PLQHV FDQ EH XVHG WR GLVUXSW

6HSWHPEHU $730&73& 

&KDSWHU

HQHP\PRYHPHQWLQWKHMXQJOH7URRSVFDQHPSODFH)$6&$0UHPRWHO\DQGXVHDVHOIGHVWUXFWRQFRPPDQG
RU DIWHU D SUHSURJUDPPHG WLPH 7KH XVH RI PLQHV PD\ EH VXEMHFW WR LQFUHDVHG DSSURYDO DXWKRULWLHV LQ
DFFRUGDQFHZLWKWKH52($UWLOOHU\GHOLYHUHG)$6&$0GRHVQRWGHSOR\ZHOOLQVRIWVRLOVDQGQRWDOOW\SHV
FDQEHGHSOR\HGLQWRZDWHUFRYHUHGDUHDV
 *LYHQWKHOLPLWHGQXPEHURIURDGVDQGWKHGLIILFXOWLHVLQKHUHQWWRE\SDVVLQJURDGFUDWHUVDQGDEDWLV
ZRUNHIIHFWLYHO\DVFRXQWHUPRELOLW\PHDVXUHVLQWKHMXQJOH0RUHYDOXDEOHWKDQURDGVFRPPDQGHUVGHVWUR\
EULGJHV DV D FRXQWHUPRELOLW\ PHDVXUH RQO\ DIWHU FDUHIXO FRQVLGHUDWLRQ 8QLWV PD\ QHHG EULGJHV IRU IXWXUH
RSHUDWLRQVVRGHVWUR\LQJWKHPKDVWKHSRWHQWLDOWRJUHDWO\LPSDFWRSHUDWLRQDOYDULDEOHVWKURXJKRXWWKH$2

&+$//(1*(672029(0(17$1'0$1(89(50$1(89(5
 'HQVHIROLDJHDQGUHVWULFWHGREVHUYDWLRQSXWXQLWVPRYLQJLQWKHMXQJOHDWULVNRIDPEXVK7RPLWLJDWH
WKLVULVNXQLWVXVHSRLQWIODQNDQGUHDUVHFXULW\WHDPVWRLGHQWLI\DQGSURYLGHHDUO\ZDUQLQJRIDQDPEXVK
7KHVHWHDPVPXVWSRVLWLRQIDUHQRXJKDZD\IURPWKHPDLQERG\VRWKDWLIWKH\PDNHFRQWDFWWKHHQHP\ZLOO
QRWHQJDJHWKHZKROHIRUFH+RZHYHUWKH\VKRXOGQRWEHVRIDUDZD\WKDWWKH\FDQQRWSURYLGHPXWXDOVXSSRUW
7KHVHVHFXULW\WHDPVPXVWVWD\DOHUWWRVLJQVRIWKHHQHP\DQGVKRXOGFDUU\DVOLJKWDORDGDVSRVVLEOHVRWKH\
FDQPDQHXYHUTXLFNO\DQGHDVLO\ 7KHPDLQERG\DQGWKHVHFXULW\WHDPVPDLQWDLQFRQWDFWWRSUHYHQWIUDWULFLGH
 7HPSRUDU\KDOWVSODFHXQLWVDWULVNRIGLVFRYHU\DQGDWWDFN8QLWVSODQKDOWVRQWHUUDLQWKDWOHQGVLWVHOI
WRDSHULPHWHUGHIHQVH'XULQJVKRUWKDOWVWURRSVILQGFRYHUGURSWRRQHNQHHDQGIDFHRXWZDUGZLWKWKHLU
ZHDSRQDWWKHUHDG\,IWKHKDOWRFFXUVDWDWUDLOFURVVLQJOHDGHUVVHQGVHFXULW\WHDPVRXWDORQJWKHWUDLO7KH
VHFXULW\ WHDP UHPDLQV LQ SODFH XQWLO WKH XQLW FOHDUV WKH FURVVLQJ 'XULQJ ORQJHU KDOWV XQLWV HVWDEOLVK D
SHULPHWHUGHIHQVH7KH\HVWDEOLVKOLVWHQLQJSRVWVDQGREVHUYDWLRQSRVWVDURXQGWKHLUSRVLWLRQVDQGHPSOR\
FOD\PRUH PLQHV DQG HDUO\ ZDUQLQJ GHYLFHV 3DWURO EDVHV DQG SHULPHWHU GHIHQVHV HVWDEOLVKHG DW QLJKW DUH
VPDOOHUWKDQWKRVHHVWDEOLVKHGGXULQJWKHGD\

029(0(17$1'0$1(89(50$1(89(5'85,1*/,0,7('9,6,%,/,7<
 ,PSURYHPHQWV WR QLJKW YLVLRQ QDYLJDWLRQ DQG FRPPXQLFDWLRQV WHFKQRORJLHV FRXSOHG ZLWK ZHOO
WUDLQHG6ROGLHUV0DULQHVHQDEOHMXQJOHRSHUDWLRQVGXULQJOLPLWHGYLVLELOLW\+LVWRULFDOO\IRUFHVFRQGXFWHG
MXQJOHRSHUDWLRQVPRVWO\GXULQJGD\OLJKWEHFDXVHRIWHFKQRORJLFDOOLPLWDWLRQVQDYLJDWLRQDOFKDOOHQJHVDQG
IDWLJXH7KHDELOLW\WRRSHUDWHDWQLJKWRULQSHULRGVRIOLPLWHGYLVLELOLW\LVDQDGYDQWDJHWKDW6ROGLHUV0DULQHV
KDYHRYHUOHVVGHYHORSHGRULOOHTXLSSHGIRUFHV7KHDELOLW\WRRSHUDWHDURXQGWKHFORFNRIIHUVFRPPDQGHUV
DJUHDWHUQXPEHURISRWHQWLDO&2$VWRDWWDFNDQHQHP\5HGXFHGYLVLELOLW\LVDOVRDQDGYDQWDJHWRFRPEDW
DYLDWLRQ DVVHWV WKDW FDQ PLWLJDWH WKH WKUHDW RI YLVXDOO\ JXLGHG DLU GHIHQVH V\VWHPV E\ RSHUDWLQJ DW QLJKW
+RZHYHUFRPPDQGHUVDOVRFRQVLGHUWKHHIIHFWVWKDWZHDWKHUYHJHWDWLRQDPELHQWOLJKWLQJILUHVEDFNJURXQG
LOOXPLQDWLRQDQGWKHXVHRIVHDUFKOLJKWVE\WKUHDWIRUFHVPD\KDYHRQWKHHIIHFWLYHQHVVRI19'VDQGWKHUPDO
LPDJLQJGHYLFHV
 ,PSURYHPHQWVLQVHQVRUVDQGSURFHVVLQJWHFKQLTXHVHQDEOHIRUFHVWRGHWHFWDQGREVHUYHPRYHPHQWDQG
PDQHXYHUPDQHXYHU WKDW ZDV QRW SUHYLRXVO\ GHWHFWDEOH &RKHUHQW FKDQJH GHWHFWLRQ HQDEOHV D IRUFH WR
GHWHUPLQHZKHQDYHKLFOHWUDQVLWHGDQDUHDEDVHGRQWUDFNVOHIWLQWKHVRLO%\FRPSDULQJUDGDULPDJHVRIWKH
VDPHURDGRUWUDLORYHUWLPHXQLWVFDQGHWHUPLQHWUDIILFSDWWHUQVWKHW\SHRIWUDIILFWKDWKDVXVHGWKHURDG
DQGWKHYROXPHRIWUDIILFDORQJWKHURDGRUWUDLO$YLDWLRQXQLWVHTXLSSHGZLWK6\QWKHWLF$SHUWXUH5DGDUPD\
KDYHWKHFDSDELOLW\WRSURYLGHUDGDUFRPSDULVRQV:KLOHOHDGHUVFDQXVHFRKHUHQWFKDQJHGHWHFWLRQWRWUDFN
HQHP\IRUFHVFRPPDQGHUVDOVRFRQVLGHUWKDWWKHHQHP\FDQXVHWKHVDPHWHFKQRORJ\WRWUDFNIULHQGO\IRUFHV
6ROGLHUV0DULQHVVHHNLQJWRDYRLGGHWHFWLRQE\FRKHUHQWFKDQJHWHFKQRORJLHVDYRLGWKHXVHRIXQLPSURYHG
WUDLOV DQG URDGV &RKHUHQW FKDQJH GHWHFWLRQ WHFKQRORJ\ RYHUFRPHV ROGHU PLWLJDWLRQ WHFKQLTXHV WR PDVN
PRYHPHQWDQGPDQHXYHUPDQHXYHU7HFKQRORJ\ZLOOFRQWLQXHWRILQGZD\VWRRYHUFRPHFXUUHQWPHWKRGVWR
FRQFHDO PRYHPHQW DQG PDQHXYHUPDQHXYHU UHTXLULQJ XQLWV WR PDNH DGGLWLRQDO FKDQJHV WR WKH ZD\ WKH\
FRQGXFWRSHUDWLRQVWRPLWLJDWHQHZFDSDELOLWLHV

,17(//,*(1&(:$5),*+7,1*)81&7,21
 7KHintelligence warfighting functionLVWKHUHODWHGWDVNVDQGV\VWHPVWKDWIDFLOLWDWHXQGHUVWDQGLQJWKH
HQHP\WHUUDLQZHDWKHUFLYLOFRQVLGHUDWLRQVDQGRWKHUVLJQLILFDQWDVSHFWVRIWKHRSHUDWLRQDOHQYLURQPHQW
$'3  2WKHU VLJQLILFDQW DVSHFWV RI DQ RSHUDWLRQDO HQYLURQPHQW LQFOXGH WKUHDWV DGYHUVDULHV DQG

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

RSHUDWLRQDOYDULDEOHVZKLFKYDU\ZLWKWKHQDWXUHRIRSHUDWLRQVIntelligenceLVWKHSURGXFWUHVXOWLQJIURPWKH
FROOHFWLRQ SURFHVVLQJ LQWHJUDWLRQ HYDOXDWLRQ DQDO\VLV DQG LQWHUSUHWDWLRQ RI DYDLODEOH LQIRUPDWLRQ
FRQFHUQLQJIRUHLJQQDWLRQVKRVWLOHRUSRWHQWLDOO\KRVWLOHIRUFHVRUHOHPHQWVRUDUHDVRIDFWXDORUSRWHQWLDO
RSHUDWLRQV -3  7KH 0DULQH &RUSV DPSOLILFDWLRQ LV NQRZOHGJH DERXW WKH HQHP\ RU WKH VXUURXQGLQJ
HQYLURQPHQW QHHGHG WR VXSSRUW GHFLVLRQPDNLQJ ,QWHOOLJHQFH LV RQH RI WKH VL[ ZDUILJKWLQJ IXQFWLRQV
0&53.7KHLQWHOOLJHQFHZDUILJKWLQJIXQFWLRQV\QFKURQL]HVLQIRUPDWLRQFROOHFWLRQZLWKWKHSULPDU\
WDFWLFDOWDVNVRIUHFRQQDLVVDQFHVXUYHLOODQFHVHFXULW\DQGLQWHOOLJHQFHRSHUDWLRQV&RPPDQGHUVGULYHWKH
RSHUDWLRQV SURFHVV0&33 DQG IRFXV WKH LQWHOOLJHQFH HIIRUWV WKDW VXSSRUW LW 'HYHORSLQJ LQWHOOLJHQFH LV D
FRQWLQXRXV SURFHVV WKDW LQYROYHV DQDO\]LQJ LQIRUPDWLRQ IURP DOO VRXUFHV DQG FRQGXFWLQJ RSHUDWLRQV WR
GHYHORSWKHVLWXDWLRQ)0 DQG0&:30&:3SURYLGHPRUHLQIRUPDWLRQRQWKHLQWHOOLJHQFH
ZDUILJKWLQJIXQFWLRQ
 /LNH RWKHU HQYLURQPHQWV LQWHOOLJHQFH SURIHVVLRQDOV SHUIRUP DOO WKH LQWHOOLJHQFH GLVFLSOLQHV LQ WKH
MXQJOH7KHLQWHOOLJHQFHGLVFLSOLQHVFRQVLVWRIFRXQWHULQWHOOLJHQFHNQRZQDV&,PHDVXUHPHQWDQGVLJQDWXUH
LQWHOOLJHQFH JHRVSDWLDO LQWHOOLJHQFH KXPDQ LQWHOOLJHQFH +80,17 RSHQVRXUFH LQWHOOLJHQFH VLJQDOV
LQWHOOLJHQFHDQGWHFKQLFDOLQWHOOLJHQFH
 7KHFKDUDFWHURIFRPEDWLQWKHMXQJOHGLUHFWO\DIIHFWVLQWHOOLJHQFHRSHUDWLRQV&RQVLVWLQJRIVPDOOXQLWV
RSHUDWLQJRYHUZLGHDUHDVWKHFKDUDFWHURIMXQJOHRSHUDWLRQVUHTXLUHVWKHUDSLGSURFHVVLQJH[SORLWDWLRQDQG
GLVVHPLQDWLRQNQRZQDV3('RIFROOHFWHGLQIRUPDWLRQLILWLVWREHFRPHDFWLRQDEOHLQWHOOLJHQFH/LJKWDQG
GLVPRXQWHGHQHP\IRUFHV¶ DELOLW\WRTXLFNO\FKDQJHWKHLUORFDWLRQGLUHFWLRQRIWUDYHODQGREMHFWLYHVPHDQV
WKDWXQLWVQHHGWRH[SORLWDQGGLVVHPLQDWHTXLFNO\DQ\FROOHFWHGLQIRUPDWLRQVRLWUHPDLQVUHOHYDQW'LVSHUVHG
IULHQGO\IRUFHVDFURVVODUJH$2VZLWKFRPSOH[WHUUDLQRQO\PDJQLI\FKDOOHQJHVWRSURFHVVLQJH[SORLWDWLRQ
DQGGLVVHPLQDWLRQ VRFRPPDQGHUVXWLOL]HWKHHQWLUHVWDIIWRGHYHORSSURFHVVHVDQGV\VWHPVWRGHOLYHUUHOHYDQW
LQWHOOLJHQFHWRVPDOOXQLWVLQDWLPHO\PDQQHU
 *LYHQWKHODFNRILQIUDVWUXFWXUHDQGWHFKQRORJ\LQPRVWMXQJOHVWKHGHWHFWLRQRIHYHQIDLQWHOHFWURQLF
VLJQDWXUHVFDQLQGLFDWHWKHHQHP\¶VSUHVHQFH$VVXFKPHDVXUHPHQWDQGVLJQDWXUHLQWHOOLJHQFHDQGVLJQDOV
LQWHOOLJHQFHRSHUDWLRQVFDQSURYHSDUWLFXODUO\HIIHFWLYHLQWKHMXQJOH:LWKRXWLQWHUIHUHQFHIURPXUEDQDUHDV
RU RWKHU WHOHFRPPXQLFDWLRQV DFWLYLWLHV WKHVH RSHUDWLRQV FDQ SURYLGH SUHFLVH LQIRUPDWLRQ RQ HQHP\ VL]H
ORFDWLRQDQGGLVSRVLWLRQ

3/$1$1'',5(&7
 3ODQQLQJDQGGLUHFWLQJWKHLQIRUPDWLRQFROOHFWLRQSODQLVFULWLFDOWRLQWHOOLJHQFHRSHUDWLRQVLQWKHMXQJOH
+RZHYHU OHDGHUVPRGLI\ WHFKQLTXHVIRULQIRUPDWLRQFROOHFWLRQWRDFFRXQWIRUMXQJOHWHUUDLQDQG ZHDWKHU
+HDY\UDLQIDOOKLJKDQGFRQVWDQWWHPSHUDWXUHKLJKKXPLGLW\DQGWKLFNYHJHWDWLRQPD\OLPLWWKHFDSDELOLWLHV
RILQIRUPDWLRQFROOHFWLRQDVVHWV8QLWVDFFRXQWIRUWKHVHOLPLWDWLRQVE\EXLOGLQJUHGXQGDQF\LQWRWKHFROOHFWLRQ
SODQDQGE\DVVLJQLQJWKHPRVWUHOLDEOHFROOHFWLRQDVVHWVWRKLJKSULRULW\QDPHGDUHDVRILQWHUHVWDQGWDUJHW
DUHDVRILQWHUHVW
 ,QIRUPDWLRQFROOHFWLRQLVFKDOOHQJHGE\WKHWKLFNMXQJOHFDQRS\7KHWKLFNFDQRS\GHJUDGHVVDWHOOLWH
DQGDHULDOVXUYHLOODQFHLQWKHMXQJOH7KHGHQVHMXQJOHFDQRS\DOVRSUHYHQWVDPELHQWOLJKWIURPSHQHWUDWLQJ
WRWKHJURXQGUHGXFLQJWKHHIIHFWLYHQHVVRI19'V/DFNRIDPELHQWOLJKWFRPELQHGZLWKKLJKKXPLGLW\DQG
KLJK WHPSHUDWXUHV PD\ FDXVH ,5 VHQVRUV WR EH OHVV HIIHFWLYH 0RELOLW\ UHVWULFWLRQV DOVR UHTXLUH WKDW DOO
LQIRUPDWLRQFROOHFWLRQV\VWHPVEHOLJKWPDQSRUWDEOHDQGUXJJHG

&2//(&7$1'352&(66
 7KH LQWHOOLJHQFH VWDII V\QFKURQL]HV FROOHFWLRQ DQG SURFHVVLQJ WR SURYLGH FULWLFDO LQIRUPDWLRQ DW NH\
WLPHVWKURXJKRXWWKHSKDVHVRIDQRSHUDWLRQ&ROOHFWLRQDQGSURFHVVLQJDUHPXWXDOO\GHSHQGHQWXQLWVSURFHVV
LQIRUPDWLRQFROOHFWHGDQGLQWXUQXVHLWWRGULYHIXWXUHFROOHFWLRQHIIRUWV

(QYLURQPHQWDO&RQVLGHUDWLRQV
 .H\VWDIIFRQVLGHUDWLRQVIRULQIRUPDWLRQFROOHFWLRQLQWKHMXQJOH

6HSWHPEHU $730&73& 

&KDSWHU

z /LPLWHGQDPHGDUHDVRILQWHUHVWVWDUJHWDUHDVRILQWHUHVWVDQGHQJDJHPHQWDUHDVGXHWRWKHODFN
RIPRELOLW\FRUULGRUVDQGLQIUDVWUXFWXUH
z +HDY\GHQVHYHJHWDWLRQUHVWULFWVYHKLFXODUPRELOLW\EXWIDYRUVGLVSHUVHGDQGGLVPRXQWHGLQIDQWU\
RSHUDWLRQV
z 5DWHRIPRYHPHQWWLPHVLQFUHDVHGXHWRKHDY\YHJHWDWLRQ
z &KDQJHVWRPRELOLW\FRUULGRUVDQGDYHQXHVRIDSSURDFKGXHWRUDLQDQGPRQVRRQV
z 'HJUDGHGSHUIRUPDQFHRISHUVRQQHODQGHTXLSPHQWGXHWRWRUUHQWLDOUDLQVDQGKLJKKXPLGLW\
z 5RDGVULYHUVVWUHDPVIRUGLQJVLWHVDQGODQGLQJ]RQHVDUHPRUHOLNHO\WREHNH\WHUUDLQ
 &ROOHFWLRQDVVHWFRQVLGHUDWLRQVLQDMXQJOHHQYLURQPHQW
z 8QDWWHQGHG JURXQG VHQVRUV DUH OLPLWHG WR VKRUW UDQJH GHWHFWLRQ GXH KHDY\ UDLQ DQG WKLFN
YHJHWDWLRQ
z 7KLFNYHJHWDWLRQOLPLWVHOHFWURRSWLFDOVHQVRUV
z +LJKKXPLGLW\DQGWHPSHUDWXUHVUHGXFH,5FROOHFWLRQE\RYHUKHDGDQGDHULDOFROOHFWRUV
z 0RLVWXUHDQGIXQJLLQWKHMXQJOHFDQLQFUHDVHWKHIDLOXUHUDWHRIHOHFWURQLF DQGFRPPXQLFDWLRQV
HTXLSPHQWQHFHVVLWDWLQJDGGLWLRQDOPDLQWHQDQFH
 ,QLWLDO LQIRUPDWLRQ FROOHFWLRQ UHTXLUHPHQWV LQ MXQJOH HQYLURQPHQWV PD\ EH DQVZHUHG E\ DHULDO RU
RYHUKHDG SODWIRUPV XVLQJ UDGDU V\VWHPV WR GHWHFW PDQPDGH REMHFWV RU YHJHWDWLRQ SHUPLWWLQJ WKH XVH RI
HOHFWURRSWLFDOSODWIRUPV2YHUKHDGLPDJHU\VKRXOGEHOHVVWKDQIRXUPRQWKVROGDVWUDLOVDQGFOHDULQJVFDQ
JURZRYHURUFKDQJHGUDPDWLFDOO\GXULQJWKDWWLPH
 /LJKWO\ HTXLSSHG ORQJUDQJH VXUYHLOODQFH DQG GLVPRXQWHG VFRXWV SOD\ D PDMRU UROH LQ LQIRUPDWLRQ
FROOHFWLRQ WDVNV LQ D MXQJOH HQYLURQPHQW 7KH UXJJHG WHUUDLQ LPSURYHV FKDQFHV IRU DFFRPSOLVKLQJ WKHLU
PLVVLRQXQREVHUYHGDQGXQGHWHFWHG
 7UDQVPLWWLQJ FROOHFWHG LQIRUPDWLRQ LV FKDOOHQJHG E\ WKH GHQVH YHJHWDWLRQ DQG VKDUS YHUWLFDO UHOLHI
SUHYDOHQWLQPDQ\MXQJOHV(OHFWURQLFVHQVRUVDQGLQIRUPDWLRQFROOHFWLRQGHYLFHVPD\IDLORURSHUDWHDWWKHLU
OHVV WKDQ PD[LPXP HIIHFWLYH UDQJH &RPPDQGHUV EXLOG UHGXQGDQF\ LQWR LQIRUPDWLRQ WUDQVPLVVLRQ DQG
FRPPXQLFDWLRQVV\VWHPVWRHQVXUHWKDWWURRSVWUDQVPLWDQGSURFHVVLQIRUPDWLRQFROOHFWHG

,QWHUDFWLQJZLWKWKH3RSXODWLRQ
 $OWKRXJKSRSXODWLRQGHQVLWLHVLQWKHMXQJOHDUHWUDGLWLRQDOO\ORZLQWHUDFWLQJZLWKORFDOQDWLRQDOVVKRXOG
QRWEHGLVFRXQWHGRURYHUORRNHG/RFDOQDWLRQDOVFDQSURYLGHLPSRUWDQWLQIRUPDWLRQUHJDUGLQJDQRSHUDWLRQDO
HQYLURQPHQWDQGPD\EHFRPHDYDOXDEOHVRXUFHRILQWHOOLJHQFH%HFDXVHWUDLQHG+80,17FROOHFWRUVPD\
EHLQVKRUWVXSSO\FRPPDQGHUVFXOWLYDWHDUHODWLRQVKLSZLWKORFDOQDWLRQDOVLQWKHLU$2WRVXSSRUWWKHRYHUDOO
LQIRUPDWLRQFROOHFWLRQHIIRUW
 (IIHFWLYH FLYLOPLOLWDU\ UHODWLRQV DQG LQIRUPDWLRQ VKDULQJ UHTXLUH WKH XVH RI OLDLVRQV $OWKRXJK WKLV
OLDLVRQLVRIWHQDFFRPSOLVKHGWKURXJKDFLYLOPLOLWDU\RSHUDWLRQVFHQWHU&02&FRPPDQGHUVPD\HVWDEOLVK
OLDLVRQV ZLWK WKH SRSXODFH LQ WKHLU $2 WR H[FKDQJH LQIRUPDWLRQ DQG LQIOXHQFH RSHUDWLRQV DW WKH ORFDO RU
SURYLQFLDORUUHJLRQDOOHYHO7KHVHOLDLVRQVZRUNEHVWZKHQHVWDEOLVKHGZLWKORFDOJRYHUQPHQWRIILFLDOVRU
FRPPXQLW\OHDGHUV7KHH[FKDQJHRIUHOLDEOHDQGUHOHYDQWLQIRUPDWLRQ VWHPVIURPWUXVWDQGFRPPDQGHUV
VWULYHWREXLOGUDSSRUWZLWKWKHORFDOSRSXODFHFRDOLWLRQSDUWQHUV1*2VDQGXQLILHGDFWLRQSDUWQHUV86
IRUFHVHDUQWKHWUXVWRISHRSOHUHJDUGOHVVRIWKHLUDIILOLDWLRQE\WUHDWLQJWKHPKXPDQHO\ZLWKGLJQLW\DQG
UHVSHFW DQG E\ GHPRQVWUDWLQJ SHUVRQDO LQWHJULW\ 86 IRUFHV FDQ DFTXLUH FULWLFDO LQIRUPDWLRQ WKURXJK
LQWHUDFWLRQVZLWKORFDOOHDGHUVKLSERWKIRUPDODQGLQIRUPDOJRYHUQPHQWRIILFLDOVEXVLQHVVRZQHUV1*2
ZRUNHUVORFDOUHVLGHQWVDQGGHWDLQHHV&RPPDQGHUVGLUHFWXQLWOHDGHUVWRFRQGXFWOLDLVRQVZLWKORFDOOHDGHUV
DQGNH\PHPEHUVRIWKHFRPPXQLW\WRDQVZHULQIRUPDWLRQUHTXHVWV&RPPDQGHUVHQVXUHWKDWRQO\WUDLQHG
DQG FHUWLILHG LQWHOOLJHQFH SURIHVVLRQDOV FRQGXFW +80,17RSHUDWLRQV VHSDUDWHO\ DQG GLVWLQFWO\ IURP FLYLO
PLOLWDU\OLDLVRQLQDFFRUGDQFHZLWK)00&53$$5DQG'2''6WDIIV
IRUZDUG LQIRUPDWLRQ FROOHFWHG IURP 6ROGLHUV0DULQHV DQG OLDLVRQV WR WKH LQWHOOLJHQFH VWDII IRU SURFHVVLQJ
H[SORLWDWLRQDQGGLVVHPLQDWLRQ
 1*2VFDQVHUYHDVDYDOXDEOHVRXUFHRILQIRUPDWLRQIRUXQLWVRSHUDWLQJLQWKHMXQJOH0DQ\1*2V
SURYLGHEDVLFHVVHQWLDOVHUYLFHVWKURXJKPHGLFDODLGIRRGGHOLYHU\DQGLQIUDVWUXFWXUHSURMHFWV$VVXFKWKHVH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

RUJDQL]DWLRQV RIWHQ KDYH D SHUVLVWHQW DQG ORQJVWDQGLQJ SUHVHQFH LQ WKH MXQJOH DQG FDQ SURYLGH FULWLFDO
LQIRUPDWLRQRQWKHORFDOSRSXODFHWHUUDLQDQGLQIUDVWUXFWXUH7KH\PD\SURYLGHLQIRUPDWLRQRQGLVSODFHG
SHUVRQVHQGHPLFGLVHDVHVDQGHYHQDFFXUDWHPDSVRUNQRZOHGJHRIWKHWHUUDLQ&RPPDQGHUVRIWHQOLDLVH
ZLWK 1*2V WKURXJK WKH &02& ZKHUH DOO SDUWLHV H[FKDQJH LQIRUPDWLRQ UHJXODUO\ WR FRRUGLQDWH HIIRUWV
DOOHYLDWHVXIIHULQJRUDWDPLQLPXPSUHYHQWFROODWHUDOGDPDJH1*2VPD\KDYHDFFHVVWRPDWHULDODLGRU
UHVRXUFHV XQDYDLODEOH WR WKH MRLQW IRUFH EXW PD\ UHTXLUH MRLQW ORJLVWLFV RU VHFXULW\ DVVHWV WR GHOLYHU LW
HIIHFWLYHO\7KLVPXWXDOO\VXSSRUWLYHUHODWLRQVKLSEHWZHHQWKHMRLQWIRUFHDQG1*2VFDQKHOSVKDSHWKHORFDO
VHFXULW\HQYLURQPHQW1*2VPD\DOVRKDYH²
z $QHWZRUNRILQIOXHQWLDODVVRFLDWLRQV
z $QH[WHQVLYHXQGHUVWDQGLQJRIWKHMXQJOHLQIUDVWUXFWXUH
z .H\NQRZOHGJHRISROLWLFDODQGHFRQRPLFLQIOXHQFHVLQWKHUHJLRQ
z $NHHQDZDUHQHVVRIVLJQLILFDQWFKDQJHVLQWKHMXQJOHHQYLURQPHQW
z ,QVLJKWLQWRWKHFXUUHQWVHFXULW\VLWXDWLRQ
z &XUUHQWPDSVDQGWHUUDLQLQIRUPDWLRQ

 (IIHFWLYH FRPPDQGHUV DYRLG FRQIXVLQJ SURGXFWLYH FLYLOLDQ UHODWLRQVKLSV ZLWK +80,17 PLOLWDU\
VRXUFH RSHUDWLRQV 2QO\ WUDLQHG +80,17 SHUVRQQHO UHFUXLW DQG WDVN VRXUFHV WR VHHN RXW LQWHOOLJHQFH
LQIRUPDWLRQ1RUPDOO\WURRSVFROOHFWLQIRUPDWLRQREWDLQHGIURPLQWHUDFWLRQVZLWKWKHSRSXODFHGXULQJQRUPDO
PLOLWDU\RSHUDWLRQVVXFKDVDSDWURORUDNH\OHDGHUHQJDJHPHQW$V6ROGLHUV0DULQHVHVWDEOLVKUDSSRUWDQG
WUXVWZLWKWKHORFDOSRSXODFHLQGLYLGXDOVPD\EHLQFOLQHGWRRIIHULQFUHDVLQJDPRXQWVRILQIRUPDWLRQRQWKH
WKUHDWRURWKHUYDULDEOHV+RZHYHUFRPPDQGHUVHQVXUHWKDWWURRSVGRQRWWLHWKHLQIRUPDWLRQFLYLOLDQVSURYLGH
WRSURPLVHVRIDVVLVWDQFHRUPRQHWDU\JDLQ
 :KHQSRVVLEOHFRPPDQGHUVWDNHVWHSVWRSURWHFWORFDOQDWLRQDOVZKRFRRSHUDWHZLWK86IRUFHV7KH\
UHFRJQL]HWKDWUHSHDWHGLQWHUDFWLRQVZLWK86IRUFHVPD\SXWORFDOQDWLRQDOVDQGWKHLUIDPLO\DWULVNIURPWKH
HQHP\ %HIRUH WKLV SRWHQWLDO GDQJHU EHFRPHV D UHDOLW\ FRPPDQGHUV UHIHU FLYLOLDQ FRQWDFWV WR WUDLQHG
+80,17 SHUVRQQHO ZKR FDQ KDQGOH WKHP PRUH VHFXUHO\ DQG HIIHFWLYHO\ 7KLV SURWHFWLRQ EHFRPHV
SDUWLFXODUO\LPSRUWDQWZKHQLQIRUPDWLRQIURPWKHFRQWDFWSURYHVFUHGLEOHDSSHDUVUHOHYDQWDQG²
z 3URYLGHVHVVHQWLDOLQIRUPDWLRQRQDUHSHWLWLYHEDVLV
z +HOSVDQVZHUFULWLFDOLQIRUPDWLRQUHTXLUHPHQWV
z $IIHFWVRSHUDWLRQVLQDQRWKHU$2
z 5HTXLUHVPRQHWDU\FRPSHQVDWLRQWRREWDLQ

3URFHVVLQJ
 2QFHWURRSVFROOHFWLQIRUPDWLRQLQWHOOLJHQFHSHUVRQQHOSURFHVVLWLQWRDIRUPDWWKDWHQDEOHVDQDO\VWVWR
H[WUDFW HVVHQWLDO LQIRUPDWLRQ DQG SODFH LW ZLWKLQ WKH ZLGHU LQWHOOLJHQFH IUDPHZRUN 'XULQJ SURFHVVLQJ
LQWHOOLJHQFHSHUVRQQHODQGV\VWHPVFRQYHUWGDWDLQWRLQIRUPDWLRQWKDWFRPPDQGHUVVWDIIVDQGXQLILHGDFWLRQ
SDUWQHUVFDQXVH

352'8&(
 3URGXFWLRQ LV WKH GHYHORSPHQW RI LQWHOOLJHQFH WKURXJK WKH DQDO\VLV RI FROOHFWHG LQIRUPDWLRQ DQG
H[LVWLQJLQWHOOLJHQFH$QDO\VWVFUHDWHLQWHOOLJHQFHSURGXFWVFRQFOXVLRQVRUSURMHFWLRQVUHJDUGLQJWKUHDWVDQG
UHOHYDQW DVSHFWV RI DQ RSHUDWLRQDO HQYLURQPHQW WR NQRZQ RU DQWLFLSDWHG UHTXLUHPHQWV 6HH $73 
$73RU0&73%>0&:3@IRUPRUHLQIRUPDWLRQRQLQWHOOLJHQFHSURGXFWLRQ

',66(0,1$7(
 &RPPDQGHUV UHFHLYH FRPEDW LQIRUPDWLRQ DQG LQWHOOLJHQFH SURGXFWV LQ D WLPH DQG PDQQHU WKDW
IDFLOLWDWHVVLWXDWLRQDOXQGHUVWDQGLQJDQGVXSSRUWVGHFLVLRQPDNLQJ7RDFFRPSOLVKWKLVWKHFRPPDQGHUDQG
VWDIIGHYHORSDQLQWHOOLJHQFHGLVVHPLQDWLRQQHWZRUNWKDWUDSLGO\GHOLYHUVUHOHYDQWLQWHOOLJHQFHWRWKHSRLQWRI
QHHGZLWKRXWRYHUZKHOPLQJWKHUHFLSLHQWZLWKLQIRUPDWLRQ7KLVFDQEHFKDOOHQJLQJLQWKHMXQJOHZKHUHXQLWV
VSUHDGRXWRYHUODUJHDUHDVDQG UHVWULFWHGWHUUDLQDQGGHQVHYHJHWDWLRQLPSHGHFRPPXQLFDWLRQV5HIHUWR
0&73&>0&:3@IRULQWHOOLJHQFHGLVVHPLQDWLRQ

6HSWHPEHU $730&73& 

&KDSWHU

7(&+12/2*<(1+$1&(0(176$1'&+$//(1*(6
 (IIHFWLYHLQIRUPDWLRQVKDULQJDQGFROODERUDWLRQUHTXLUHVWKHXVHRIFRPPRQQHWZRUNDQDO\VLVVRIWZDUH
DQGGDWDEDVHVE\MRLQWIRUFHVDQGXQLILHGDFWLRQSDUWQHUV7KHFKDOOHQJHVDVVRFLDWHGZLWKVKDULQJLQIRUPDWLRQ
DFURVVGLJLWDOV\VWHPVDQGQHWZRUNVPXVWEHDGGUHVVHGGXULQJWKH0'030&33
 %LRPHWULFGDWDFROOHFWLRQLVDQLPSRUWDQWSDUWRIWKHRYHUDOOLQWHOOLJHQFHWDUJHWLQJDQGIRUFHSURWHFWLRQ
DUFKLWHFWXUH Biometrics LV WKH SURFHVV RI UHFRJQL]LQJ DQ LQGLYLGXDO EDVHG RQ PHDVXUDEOH DQDWRPLFDO
SK\VLRORJLFDODQGEHKDYLRUDOFKDUDFWHULVWLFV-3%LRPHWULFVXVHXQDOWHUDEOHSK\VLFDOWUDLWVWRLGHQWLI\
DQGLIQHFHVVDU\FDWDORJDQLQGLYLGXDOLQDNQRZQGDWDEDVH )RUFHVFDQXVHWKLVFDSDELOLW\WRLGHQWLI\DQ
HQHP\ VHHNLQJ WR KLGH DPRQJ WKH SRSXODFH LQ WKH MXQJOH :KHQ VFUHHQHG DJDLQVW IRUHQVLF HYLGHQFH
ELRPHWULFVFDQOLQNDQLQGLYLGXDOWRSDVWDOLDVHVORFDWLRQVDQGHYHQWV%LRPHWULFWHFKQRORJLHVDQGWKH773
IRUWKHLUHPSOR\PHQWDUHG\QDPLFDQGUDSLGO\FKDQJLQJ8QLWVFDQXVHELRPHWULFVWR²
z &RQILUPWKHLGHQWLW\RIVXVSHFWLQGLYLGXDOVLQFOXGLQJKLJKYDOXHLQGLYLGXDOV
z /LQNSHUVRQVWRHYHQWVWKURXJKIRUHQVLFVVXFKDVILQJHUSULQWV
z )DFLOLWDWHWLPHVHQVLWLYHWDUJHWLQJ
z 5HVWULFWEDVHDFFHVVWRDXWKRUL]HGSHUVRQQHO
z &UHDWHDFFHVVEDGJHVDQGFUHGHQWLDOV
z 6FUHHQORFDOKLUHVDQGFRQWUDFWRUVIRUVHFXULW\WKUHDWV
z 6FUHHQDSSOLFDQWVGXULQJVHFXULW\IRUFHUHFUXLWPHQWGULYHV
z (QKDQFHFKHFNSRLQWRSHUDWLRQVE\UHVWULFWLQJWKHPRYHPHQWRIWKUHDWIRUFHV
z 3URFHVVSHUVRQQHOGXULQJVLWHH[SORLWDWLRQ
z &RQWUROPRYHPHQWDFURVVERUGHUVRUERXQGDULHV
z ,GHQWLI\DQGSURFHVVGHWDLQHHV

 $OWKRXJK SULPDULO\ XVHG E\ PLOLWDU\ SROLFH DQG LQWHOOLJHQFH SURIHVVLRQDOV DOO 6ROGLHUV0DULQHV FDQ
WUDLQWRXVHELRPHWULFV)RUPRUHLQIRUPDWLRQRQWKHXVHRIELRPHWULFVGXULQJRSHUDWLRQVVHH$73
DQG$730&53)1773$)773

),5(6:$5),*+7,1*)81&7,21
 7KHfires warfighting functionLVWKHUHODWHGWDVNVDQGV\VWHPVWKDWFUHDWHDQGFRQYHUJHHIIHFWVLQDOO
GRPDLQV DJDLQVW WKH DGYHUVDU\ RU HQHP\ WR HQDEOH RSHUDWLRQV DFURVV WKH UDQJH RI PLOLWDU\ RSHUDWLRQV
$'3FiresLVWKHXVHRIZHDSRQV\VWHPVRURWKHUDFWLRQVWRFUHDWHVSHFLILFOHWKDORUQRQOHWKDOHIIHFWV
RQ D WDUJHW -3  7KH 0DULQH &RUSV DPSOLILFDWLRQ LV WKRVH PHDQV XVHG WR GHOD\ GLVUXSW GHJUDGHRU
GHVWUR\HQHP\FDSDELOLWLHVIRUFHVRUIDFLOLWLHVDVZHOODVDIIHFWWKHHQHP\¶VZLOOWRILJKW)LUHVLVRQHRIWKH
ZDUILJKWLQJIXQFWLRQV0&53Fire supportDUHILUHVWKDWGLUHFWO\VXSSRUWODQGPDULWLPHDPSKLELRXV
VSDFHF\EHUVSDFHDQGVSHFLDORSHUDWLRQVIRUFHVWRHQJDJHHQHP\IRUFHVFRPEDWIRUPDWLRQVDQGIDFLOLWLHV
LQ SXUVXLW RI WDFWLFDO DQG RSHUDWLRQDO REMHFWLYHV -3  0DULQH &RUSV DPSOLILFDWLRQ LV DVVLVWDQFH WR
HOHPHQWVRIWKH0DULQHDLUJURXQGWDVNIRUFHHQJDJHGZLWKWKHHQHP\UHQGHUHGE\RWKHUILULQJXQLWVLQFOXGLQJ
EXWQRWOLPLWHGWRDUWLOOHU\PRUWDUVQDYDOVXUIDFHILUHVXSSRUWDQGRIIHQVLYHDLUVXSSRUW0&53
)LUHVFDQEHGHOLYHUHGE\DUPHGDLUFUDIWODQGDQGVHDEDVHGLQGLUHFWILUHV\VWHPVDLUDQGPLVVLOHGHIHQVH
V\VWHPVDQG(:V\VWHPV
 7KHMXQJOH¶VWHUUDLQWRSRJUDSK\DQGGHQVHYHJHWDWLRQPD\DIIHFWILUHVXSSRUW7DUJHWDFTXLVLWLRQLV
GHJUDGHG E\ WKLFN YHJHWDWLRQ RU ZHDWKHU DQG WKH UHVWULFWLYH WHUUDLQ PD\ SUHYHQW ODQGEDVHG ILUHV IURP
SRVLWLRQLQJLQVXSSRUWRIPDQHXYHUIRUFHV$VVXFKPDULWLPHRUDLUEDVHGILUHVDUHRIWHQWKHPRVWUHVSRQVLYH
DQG HIIHFWLYH LQ MXQJOH HQYLURQPHQWV /LJKWHU PDQSRUWDEOH ILUHV VXFK DV PRUWDUV DOVR ZRUN ZHOO LQ WKH
MXQJOH

7$5*(7,1*
 TargetingLVWKHSURFHVVRIVHOHFWLQJDQGSULRULWL]LQJWDUJHWVDQGPDWFKLQJWKHDSSURSULDWHUHVSRQVH
WRWKHPFRQVLGHULQJRSHUDWLRQDOUHTXLUHPHQWVDQGFDSDELOLWLHV-38QLWVPD\XVHWKH$UP\WDUJHWLQJ
SURFHVVDQGWKHMRLQWWDUJHWLQJF\FOHWRLQWHJUDWHDQGV\QFKURQL]HILUHVLQWRRSHUDWLRQVFUHDWLQJWKHGHVLUHG
HIIHFWVLQWLPHDQGVSDFH7KURXJKWDUJHWLQJILUHVFHOOVUHFRPPHQGWDUJHWLQJJXLGDQFHWRWKHFRPPDQGHU

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

GHYHORSWDUJHWVVHOHFWWDUJHWVIRUDWWDFNDQGFRRUGLQDWHLQWHJUDWHDQGDVVLJQDOORFDWHGMRLQWLQWHUDJHQF\
DQGPXOWLQDWLRQDOILUHVWRVSHFLILFWDUJHWV7KHUHDUHWZRW\SHVRIWDUJHWLQJGHOLEHUDWHWDUJHWLQJDQGG\QDPLF
WDUJHWLQJ
 'HOLEHUDWHWDUJHWLQJSURVHFXWHVSODQQHGWDUJHWV7KHVHWDUJHWVDUHNQRZQWRH[LVWLQWKH$2DQGKDYH
DFWLRQV VFKHGXOHG DJDLQVW WKHP 'HOLEHUDWH WDUJHWV RIWHQ FRQVLVW RI LQIUDVWUXFWXUH RU IL[HG VLWHV WKDW DUH
LGHQWLILHGHDUO\LQDQRSHUDWLRQDQGSODFHGRQWKHMRLQWDLUWDVNLQJRUGHURULQFOXGHGLQDILUHVXSSRUWSODQ
'\QDPLFWDUJHWLQJSURVHFXWHVWDUJHWVRIRSSRUWXQLW\DQGFKDQJHVWRSODQQHGWDUJHWVRUREMHFWLYHV7DUJHWVRI
RSSRUWXQLW\ DUH WDUJHWV LGHQWLILHG WRR ODWH RU QRW VHOHFWHG IRU DFWLRQ LQ WLPH WR EH LQFOXGHG LQ GHOLEHUDWH
WDUJHWLQJ7DUJHWVHQJDJHGDVSDUWRIG\QDPLFWDUJHWLQJDUHSUHYLRXVO\XQDQWLFLSDWHGXQSODQQHGRUQHZO\
GHWHFWHG
 7DUJHWLQJLQWKHMXQJOHFDQEHFKDOOHQJLQJGXHWRWKHGLIILFXOWLHVRILGHQWLI\DQGORFDWLQJKLJKSD\RII
WDUJHWV LQ GHQVH YHJHWDWLRQ $ high-payoff target LV D WDUJHW ZKRVH ORVV WR WKH HQHP\ ZLOO VLJQLILFDQWO\
FRQWULEXWH WR WKH VXFFHVV RI WKH IULHQGO\ FRXUVH RI DFWLRQ -3 &RQVHTXHQWO\ PRUH XQLWV FRPPRQO\
HPSOR\G\QDPLFWDUJHWLQJGXHWRWKHIOHHWLQJQDWXUHRIILQGLQJIL[LQJDQGWUDFNLQJRIKLJKSD\RIIWDUJHWV
 '\QDPLFWDUJHWLQJFRQVLVWVRIVL[VWHSV
z )LQG'HWHFWDQGFODVVLI\WDUJHWVIRUSURVHFXWLRQ
z )L['HWHUPLQHWKHORFDWLRQRIWKHSRWHQWLDOWDUJHW
z 7UDFN2EVHUYHDQGPRQLWRUWKHWDUJHW¶VDFWLYLW\DQGPRYHPHQW
z 7DUJHW 'HFLGH ZKHWKHU WR HQJDJH WKH WDUJHW DQG VHOHFW DQG FRRUGLQDWH WKH PHDQV WR FUHDWH WKH
GHVLUHGHIIHFWV
z (QJDJH7DNHDFWLRQDJDLQVWWKHWDUJHW
z $VVHVV)RFXVRQWKHUHVXOWVRIWKHWDUJHWHQJDJHPHQW%DWWOHGDPDJHDVVHVVPHQW%'$LVFULWLFDO
WRGHWHUPLQHLIDQLPPHGLDWHUHDWWDFNLVUHTXLUHG
 '\QDPLFWDUJHWLQJLVQRWVHSDUDWHIURPWKHMRLQWWDUJHWLQJF\FOH$OOSRWHQWLDOWDUJHWVQRPLQDWHGIRU
DWWDFNFRQWLQXDOO\FKDQJHLQLPSRUWDQFHGXHWRWKHG\QDPLFQDWXUHRIFRPEDW:KHQWKHWDUJHWSRVHVDGDQJHU
WR IULHQGO\ IRUFHV RU LW SUHVHQWV D OXFUDWLYH IOHHWLQJ RSSRUWXQLW\ WR JDLQ WDFWLFDO DGYDQWDJH WKH -)& PD\
GHVLJQDWH DQ DWWDFN 8QLWV PD\ DQWLFLSDWH DQG SODQ IRU WDUJHWV DV GHOLEHUDWH DFWLRQV LQ WKH MRLQW WDUJHWLQJ
SURFHVVRUWKH\PD\HOHYDWHLQSULRULW\RURUGHUWKHWDUJHWVIRUDWWDFNRQFHGLVFRYHUHG

0257$56
 0RUWDUV DUH KLJKDQJOH UHODWLYHO\ VKRUWUDQJH DUHD ILUH ZHDSRQV WKDW WURRSV FDQ XVH HIIHFWLYHO\
GXULQJ MXQJOH RSHUDWLRQV 7KHLU OLJKW ZHLJKW DQG PRELOLW\ PDNH WKHP ZHOO VXLWHG IRU FORVH VXSSRUW RI
PDQHXYHUIRUFHV7KH\DUHLGHDOZHDSRQVIRUDWWDFNLQJWDUJHWVRQUHYHUVHVORSHVLQGHSUHVVLRQVDQGRWKHU
DUHDV GLIILFXOW WR UHDFK ZLWK GLUHFW RU ORZDQJOH ILUHV 6HH $73 0&73 ' IRU DGGLWLRQDO
LQIRUPDWLRQRQPRUWDUVDQGWKHLUFDSDELOLWLHV
 6RIWRUVDWXUDWHGVRLODQGWKLFNFDQRS\FDQDIIHFWPRUWDUHPSOR\PHQWLQWKHMXQJOH6RIWRUVDWXUDWHG
VRLO PD\ QRW VXSSRUW WKH ZHLJKW RU UHFRLO RI KHDY\ PRUWDUV DQG GHQVH FDQRS\ PD\ QHJDWH WKH RYHUKHDG
FOHDUDQFHUHTXLUHGWRHIIHFWLYHO\HPSOR\PRUWDUV8QLWVPD\UHTXLUHFKDLQVDZVDQGGHPROLWLRQVWRFOHDU
DUHDVRIGHQVHEUXVKDQGRYHUKHDGFRYHU

Note. )RU PRUH LQIRUPDWLRQ RQ WKH WDFWLFDO HPSOR\PHQW RI PRUWDUV 6ROGLHUV0DULQHV UHIHU WR
7&DQG$730&73'

),(/'$57,//(5<
 7KHUROHRIWKHILHOGDUWLOOHU\LVWRGHVWUR\QHXWUDOL]HRUVXSSUHVVWKHHQHP\E\FDQQRQURFNHWDQG
PLVVLOHILUHDQGWRLQWHJUDWHDQGV\QFKURQL]HDOOILUHVXSSRUWDVVHWVLQWRRSHUDWLRQV$MXQJOHHQYLURQPHQW
SRVHV XQLTXH FKDOOHQJHV WR ERWK PDQHXYHU DQG ILHOG DUWLOOHU\ FRPPDQGHUV E\ UHVWULFWLQJ PRYHPHQW
REVHUYDWLRQILHOGVRIILUHFRPPXQLFDWLRQVDQGWDUJHWDFTXLVLWLRQ

6HSWHPEHU $730&73& 

&KDSWHU

 -XQJOH EDWWOHV DUH FKDUDFWHUL]HG E\ OLPLWHG YLVLELOLW\ DQG FORVH FRPEDW 8QLWV RIWHQ HPSOR\ ILUH
VXSSRUW GDQJHUFORVH DQG PXVW FDUHIXOO\ FRRUGLQDWH ZLWK VXSSRUWLQJ ILUH GLUHFWLRQ FHQWHUV DQG DGMDFHQW
PDQHXYHUXQLWV6WDIIVDGMXVWIUHTXHQWO\XVLQJFUHHSLQJWHFKQLTXHVDQGVRPHWLPHVVRXQG

1$9$/*81),5(
 1DYDOJXQILUHDORQJZLWK&$6LVHPSOR\HGLQDPSKLELRXVRSHUDWLRQVSULRUWRWKHODQGLQJRIDUWLOOHU\
XQLWV$IWHUPDQHXYHUDQGDUWLOOHU\HOHPHQWVDUHHVWDEOLVKHGDVKRUH861DY\VKLSVFDQSURYLGHUHLQIRUFLQJ
DUWLOOHU\VXSSRUWLQMXQJOHDUHDVQHDUWKHFRDVW'HVWUR\HUVRUOLWWRUDOVXSSRUWVKLSVVRPHWLPHVSURYLGHVXSSRUW
DORQJODUJHMXQJOHULYHUV
 :KHQXQLWVFRQGXFWRSHUDWLRQVZLWKLQUDQJHRIQDYDOJXQILUHWKHQHDUHVWILUHVXSSRUWFRRUGLQDWLRQ
FHQWHUQRUPDOO\KDVQDYDOJXQILUHOLDLVRQRIILFHUV 7KHVHRIILFHUVDUUDQJHIRUJURXQGDQGDHULDOVSRWWHUVIRU
WKHPDQHXYHUXQLWV$OWHUQDWLYHO\IRUZDUGREVHUYHUVFDQDGMXVWWKHVKLS¶VILUHV8QLWVFDQILQGWKHFDOOIRU
ILUHDQGDGMXVWPHQWSURFHGXUHVIRUQDYDOVXUIDFHILUHVXSSRUWLQ$730&531773
$)773
 1DYDO JXQILUH UHVXOWV LQ ODUJHUDQJH SUREDEOH HUURUV WKH GLVSHUVLRQ SDWWHUQ RI WKH QDYDO JXQ LV
URXJKO\HOOLSWLFDOZLWKWKHORQJD[LVLQWKHGLUHFWLRQRIILUH+HQFHFRYHUDJHRIWDUJHWVVXFKDVURDGVDQG
DLUILHOGVLVPRVWHIIHFWLYHZKHQWKHJXQWDUJHWOLQHFRLQFLGHVZLWKWKHORQJD[LVRIWKHWDUJHW1DYDOJXQVFDQ
GHOLYHUYHU\FORVHVXSSRUWLQJILUHZKHQWKHJXQWDUJHWOLQHUXQVSDUDOOHOWRWKHIURQWOLQHRIWURRSV2SSRVLWHO\
DJXQWDUJHWOLQHSHUSHQGLFXODUWRWKHIURQWWUDFHFDQHQGDQJHUIULHQGO\IRUFHV
 1DYDO JXQILUH SURYLGHV ORZ WUDMHFWRU\ RUGQDQFH 7KLV PLJKW FDXVH D SUREOHP LQ KHDYLO\ IRUHVWHG
MXQJOHDUHDVLIWKHSURMHFWLOHVWULNHVWDOOWUHHVGHWRQDWLQJSUHPDWXUHO\RYHUIULHQGO\WURRSV

52&.(7$1'0,66,/(),5(6
 7KHPXOWLSOHODXQFKURFNHWV\VWHP0/56DQG+LJK0RELOLW\$UWLOOHU\5RFNHW6\VWHP+,0$56
SURYLGHURFNHWDQGPLVVLOHILUHVFRPSOHPHQWLQJFDQRQDUWLOOHU\DQGDOORWKHUILUHVXSSRUWDVVHWVLQVXSSRUW
RIWKHPDQHXYHUFRPPDQGHU0/56DQG+,0$56KDYHDOOZHDWKHUORQJUDQJHFDSDELOLWLHVDQGIXOOVXLWHV
RI PXQLWLRQV SURYLGLQJ PDVVLYH GHVWUXFWLYH FDSDELOLW\ 0XQLWLRQV DYDLODEOH IRU WKH 0/56 DQG +,0$56
LQFOXGHXQLWDU\ZDUKHDGVYDULDEOHIXVLQJVXEPXQLWLRQVH[WHQGHGUDQJHVDQGSUHFLVLRQJXLGDQFH
 0/56LVDKLJKO\PRELOHOLJKWO\DUPRUHGWUDFNHGYHKLFOHFDSDEOHRIFDUU\LQJWZRODXQFKSRGVRI
URFNHWVRUPLVVLOHV7KH+,0$56LVDQDLUWUDQVSRUWDEOHDUPRUHGFDEZKHHOHGYHKLFOHFDSDEOHRIFDUU\LQJ
RQHODXQFKSRGRIURFNHWVRUPLVVLOHV0/56DQG+,0$56KDYHOLPLWHGRIIURDGFDSDELOLWLHVDQGUHTXLUH
UHODWLYHO\ODUJHDUHDVFOHDURIPDVNVDQGRYHUKHDGFRYHUZKLFKPDNHVWKHLUPDQHXYHUDQGHPSOR\PHQWLQ
WKHMXQJOHHQYLURQPHQWFKDOOHQJLQJ
 7KH OHWKDOLW\ UDQJH DQG DFFXUDF\ RI VRPH 0/56 DQG +,0$56 PXQLWLRQV UHVXOW LQ WKH ODUJHVW
GDQJHUFORVHGLVWDQFHVRIDQ\$UP\0DULQH&RUSVRUJDQLFILUHVDVVHW6LQFHWURRSVLQWKHMXQJOHRIWHQILJKW
HQJDJHPHQWVDWH[WUHPHO\FORVHGLVWDQFHVWKHODUJHGDQJHUFORVHUHTXLUHPHQWIRUWKH0/56DQG+,0$56
PD\OLPLWWKHLUHPSOR\PHQWGXULQJMXQJOHRSHUDWLRQV7KHFRPPDQGHUDQGILUHGLUHFWLRQFHQWHUPXVWWDNH
SURSHUSUHFDXWLRQVZKHQHPSOR\LQJURFNHWDQGPLVVLOHILUHVGDQJHUFORVH

$,5*5281'23(5$7,216$1'&$6
 ,QWKHMXQJOHZKHUHPHHWLQJHQJDJHPHQWVDQGPRYHPHQWWRFRQWDFWVDUHFRPPRQDHULDOILUHVFDQ
SURYLGHUHVSRQVLYHILUHVXSSRUWWRWURRSVLQFRQWDFW&$6DQGDWWDFNKHOLFRSWHUVFDQDOVRHQJDJHWDUJHWVFORVHU
WRIULHQGO\WURRSVWKDQLQGLUHFWILUHDVVHWV
 $LUERUQHIRUZDUGDLUFRQWUROOHUVDUHPRUHHIIHFWLYHWKDQJURXQGREVHUYHUVLQGHQVHO\IRUHVWHGDUHDV
EHFDXVHWKH\KDYHDEURDGHUYLHZRIWKHEDWWOHILHOG7RSUHYHQWIUDWULFLGHXQLWVHPSOR\SUHSODQQHGVLJQDOV
WRLGHQWLI\IULHQGO\IRUFHVZKHQXVLQJ&$6RUDWWDFNDYLDWLRQ7KH\PLJKWXVHS\URWHFKQLFVFRORUHGVPRNH
RUYLVXDOVLJQDOLQJSDQHOVWRLGHQWLI\IULHQGO\IRUFHVRQWKHJURXQG+RZHYHUXQLWVFRQVLGHUWKDWXVLQJWKHVH
VLJQDOLQJWHFKQLTXHVDOVRUHYHDOVWKHORFDWLRQRIIULHQGO\IRUFHVWRWKHHQHP\8QLWVXVHILUHVERWKGLUHFWDQG
LQGLUHFWWRPDUNWDUJHWVIRUIROORZRQ&$6

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

 7KHFRPEDWUDGLXVDQGSD\ORDGRIDWWDFNKHOLFRSWHUVLVKHDYLO\DIIHFWHGE\HQYLURQPHQWDOIDFWRUVLQ
WKH MXQJOH IL[HGZLQJ DLUFUDIW DUH DOVR LPSDFWHG EXW QRW DV VLJQLILFDQWO\ *HQHUDOO\ DV WKH WHPSHUDWXUH
DOWLWXGHDQGRSHUDWLQJZHLJKWRIDQDLUFUDIWLQFUHDVHVLWVFRPEDWUDGLXVLVUHGXFHG7KHUHIRUHWKHFRPPDQGHU
SRVLWLRQVDWWDFNDYLDWLRQSODWIRUPVDQGWKHLUVXSSRUWDVVHWVDVIDUIRUZDUGDVSRVVLEOHWRVXSSRUWDQWLFLSDWHG
WURRSVLQFRQWDFW

$,5$1'0,66,/('()(16(
 $LUGHIHQVHIRUFHVLQFOXGHDLUGHIHQVHUDGDUVZHDSRQVV\VWHPVDQGDSSURSULDWHFRPPXQLFDWLRQV
HTXLSPHQW7KHUHODWLYHO\ODUJHPDQHXYHUDUHDVDVVRFLDWHGZLWKMXQJOHRSHUDWLRQVFKDOOHQJHVWKHDELOLW\RI
DLUGHIHQVHIRUFHVWRSURYLGHVLPXOWDQHRXVFRYHUDJHRYHUDOOFULWLFDODVVHWV7KHFULWLFDODVVHWOLVW&$/LVD
SULRULWL]HGOLVWRIDVVHWVRUDUHDVQRUPDOO\LGHQWLILHGE\SKDVHRIWKHRSHUDWLRQDQGDSSURYHGE\WKHMRLQW
IRUFHFRPPDQGHUWKDWVKRXOGEHGHIHQGHGDJDLQVWDLUDQGPLVVLOHWKUHDWV-3$IWHUSULRULWL]LQJFULWLFDO
DVVHWVDJDLQVWWKHSURWHFWLRQUHVRXUFHVDYDLODEOHWKHFRPPDQGHUDQGVWDIIGHYHORSWKHGHIHQGHGDVVHWOLVW
'$/7KHGHIHQGHGDVVHWOLVWLVDOLVWLQJRIWKRVHDVVHWVIURPWKHFULWLFDODVVHWOLVWSULRULWL]HGE\WKHMRLQW
IRUFHFRPPDQGHUWREHGHIHQGHGZLWKWKHUHVRXUFHVDYDLODEOH-3$LUDQGPLVVLOHGHIHQVHDVVHWVDUH
WKHQDOORFDWHGWRSURWHFWLGHQWLILHGDVVHWV
 %HFDXVH RI WKHLU PXWXDOO\ VXSSRUWLYH UHODWLRQVKLS FRPPDQGV VWDWLRQ DLU GHIHQVH XQLWV FORVH WR
PDQHXYHUXQLWV7KLVSURYLGHVWKHPDQHXYHUXQLWVZLWKDLUGHIHQVHFRYHUDJHZKLOHDOVRHQVXULQJWKDWWKHDLU
GHIHQVHIRUFHVKDYHSURWHFWLRQIURPHQHP\JURXQGWKUHDWV7RPDLQWDLQWKLVPXWXDOO\VXSSRUWLYHUHODWLRQVKLS
LQWKHMXQJOHGLVPRXQWHGRUPDQSRUWDEOHVKRUWUDQJHDLUGHIHQVHXQLWVDUHWKHPRVWVXLWHGWRPRYHPHQW
DQGPDQHXYHUDORQJWKHMXQJOH¶VOLPLWHG/2&VDQGUHVWULFWHGWHUUDLQ
 -XQJOHV QRUPDOO\ SURYLGH JRRG FRQFHDOPHQW IURP WKH DLU ZKLFK PD\ UHGXFH DLU GHIHQVH
UHTXLUHPHQWV7KHMXQJOHFRQFHDOPHQWDIIRUGHGWRPDQHXYHUIRUFHVGHFUHDVHVWKHOLNHOLKRRGWKDWHQHP\DLU
ZLOODWWDFNWKHP'HQVHO\IRUHVWHGDUHDVLQFUHDVHWKHHIIHFWLYHQHVVRISDVVLYHDLUGHIHQVHPHDVXUHVVXFKDV
FDPRXIODJHDQGGLVSHUVLRQ0RUHRIWHQWKHHQHP\GLUHFWVDLUDWWDFNVDJDLQVWEDVHFRPSOH[HVDLUILHOGVDQG
ORJLVWLFDOIDFLOLWLHV([SRVHGDUHDVVXFKDVFOHDULQJVURDGVRUULYHUFURVVLQJVDQGIDFLOLWLHVZKHUHWURRSV
WHQGWRFRQFHQWUDWHVXFKDVVXSSO\SRLQWVDQGKHDGTXDUWHUVUHTXLUHDLUGHIHQVHDUWLOOHU\SURWHFWLRQDQGVKRXOG
UHFHLYHILUVWSULRULW\IRUDLUGHIHQVHLQMXQJOHRSHUDWLRQV
 7DUJHWDFTXLVLWLRQLVPRUHGLIILFXOWDQGUDGDUVDUHOHVVHIIHFWLYHLQWKHMXQJOH$LUGHIHQVHDUWLOOHU\
JXQQHUVPD\QRWEHDEOHWRVHHHQHP\DLUFUDIWXQWLOWKH\IO\RYHUWKHLUSRVLWLRQ5HDFWLRQWLPHVZLOOEHVKRUW
DQGPDQ\HQJDJHPHQWVZLOOWDNHSODFHDIWHUFURVVRYHU

-81*/(())(&7621),5(6833257
 -XQJOHWHUUDLQYHJHWDWLRQDQGWKHFKDUDFWHURIRSHUDWLRQVDOODIIHFWKRZXQLWVHPSOR\ILUHVXSSRUWLQ
WKHMXQJOH7KHRSHUDWLRQDODQGPLVVLRQYDULDEOHVVXFKDVWKHKHLJKWVDQGGHQVLW\RIYHJHWDWLRQEXLOGLQJV
DQGWHUUDLQQXPEHUVDQGFRQFHQWUDWLRQVRIFLYLOLDQVDQGSURWHFWHGLQIUDVWUXFWXUHDIIHFWKRZ$UP\0DULQH
&RUSVIRUFHVFDQHPSOR\ILUHVXSSRUW

$FTXLVLWLRQDQG(QJDJHPHQW5DQJHV
 7DUJHWDFTXLVLWLRQLQWKHMXQJOHLVFKDOOHQJLQJ'HQVHYHJHWDWLRQDQGWKLFNRYHUKHDGFRYHUDIIRUG
HQHP\IRUFHVDPSOHFRYHUDQGFRQFHDOPHQWPDNLQJWDUJHWGHWHFWLRQGLIILFXOW7KHIHZRSHQDUHDVRIIHUVKRUW
ZLQGRZVRIRSSRUWXQLW\IRUWDUJHWLQJPDQHXYHUIRUFHVLQWKHRSHQDQGUHTXLUHILULQJV\VWHPVWRDFWUDSLGO\
RQWDUJHWLQJGDWDWREHHIIHFWLYH&RXQWHUILUHYLDUDGDULVHIIHFWLYHKRZHYHUVKDUSUHOLHIDQGPDVNLQJWHUUDLQ
FDQPDNHLWPRUHGLIILFXOWWRHPSOR\
 3RRU ZHDWKHU KHDY\ YHJHWDWLRQ DQG OLPLWHG REVHUYDWLRQ UDQJHV LQ WKH MXQJOH KLQGHUV WDUJHW
LGHQWLILFDWLRQODVHUGHVLJQDWLRQDQGJXLGDQFHIRUDHULDODQGMRLQWILUHV7KHSUR[LPLW\RIIULHQGO\XQLWVDQG
QRQFRPEDWDQWV UHTXLUHV XQLWV WR DJUHH RQ WKRURXJKO\ GLVVHPLQDWH DQG UHKHDUVH FOHDU WHFKQLTXHV DQG
SURFHGXUHVIRUPDUNLQJWDUJHWDQGIULHQGO\ORFDWLRQV7KHDELOLW\IRUJURXQGXQLWVWR³WDONRQ´DLUFUDIWXVLQJ
DFRPPRQUHIHUHQFHV\VWHPKHOSVH[SHGLWHDHULDOWDUJHWDFTXLVLWLRQDQGPLWLJDWHVSRWHQWLDOIUDWULFLGH
 7RGHWHFWDFTXLUHDQGHQJDJHHQHP\PDQHXYHUIRUFHVLQWKHMXQJOHFRPPDQGHUVIRFXVLQWHOOLJHQFH
VXUYHLOODQFH DQG UHFRQQDLVVDQFH NQRZQ DV ,65 HIIRUWV RQ OLNHO\ RU NQRZQ DYHQXHV RI DSSURDFK

6HSWHPEHU $730&73& 

&KDSWHU

&RPPDQGHUV UHFRJQL]H WKH WHQGHQF\ IRU PRXQWDLQRXV WHUUDLQ WR FRPSDUWPHQWDOL]H IRUFHV DQG FDQDOL]H
PRYHPHQW $VVXFKWKH\IRFXVFROOHFWLRQHIIRUWVDQGGHVLJQDWHSUHSODQQHGWDUJHWVDORQJQDWXUDOOLQHVRI
GULIWVXFKDV/2&VVWUHDPVULYHUVYDOOH\VDQGRSHQDUHDV
 &RPPDQGHUV PHHW WDUJHW DFTXLVLWLRQ FKDOOHQJHV E\ LQWHJUDWLQJ DQG OD\HULQJ UHFRQQDLVVDQFH
FDSDELOLWLHVDQGV\VWHPV7KHVHFDSDELOLWLHVLQFOXGH62)PDQQHGDLUFUDIWV\VWHPV8$6V(:UDGDUVDQG
UHFRQQDLVVDQFHDVVHWV6WDIIVPXVWFDUHIXOO\SODQIRUWKHSODFHPHQWDQGVHFXULW\RIIRUZDUGREVHUYHUVMRLQW
ILUHVREVHUYHUVDQGMRLQWWHUPLQDODWWDFNLQVXSSRUWRIWDUJHWLQJSULRULWLHV6WDIIVFRQVLGHUXVLQJPRUHDUWLOOHU\
V\VWHPV DQG GLVSHUVLQJ WKHVH V\VWHPV DFURVV D ZLGHU DUHD WR HQVXUH WKH UHVSRQVLYHQHVV UDWKHU WKDQ WKH
ZHLJKWRIILUHV
 7KHMXQJOH¶VGHQVHYHJHWDWLRQDQGWKLFNFDQRS\RIIHUOLWWOHWLPHIRU6ROGLHUV0DULQHVRQWKHJURXQG
WRGLVWLQJXLVKIULHQGO\IURPHQHP\DLUFUDIW:KLOHVRPHDXWRPDWHGGLJLWDOV\VWHPV DVVLVWZLWKLGHQWLI\LQJ
IL[HGURWDU\DQGWLOWURWRUDLUFUDIWWKRVHV\VWHPVDUHXVXDOO\RQO\DYDLODEOHWRVSHFLDOL]HGDLUDQGPLVVLOH
GHIHQVHV\VWHPV7KH6ROGLHU0DULQHRQWKHJURXQGZLOOKDYHWRUHO\RQEDVLFDLUFUDIWUHFRJQLWLRQPHWKRGV
WR GLVFHUQ IULHQGO\ DLUFUDIW IURP HQHP\ DLUFUDIW /HDGHUV WUDLQ 6ROGLHUV0DULQHV WR UHFRJQL]H HQHP\ DQG
IULHQGO\DLUIUDPHVIURPYDULRXVDQJOHVLGHQWLI\GLVWLQJXLVKLQJPDUNLQJVRQDLUFUDIWDQGVSRWPRGLILFDWLRQV
WRDLUIUDPHVWKDWGLIIHUHQWLDWHFRPPRQDLUFUDIWXVHGE\PXOWLSOHSDUWLHV

3RVLWLRQLQJ
 7R EHVW VXSSRUW GLVPRXQWHG PDQHXYHU IRUFHV RSHUDWLQJ DFURVV ZLGH DUHDV FRPPDQGHUV GLVSHUVH
ILHOGDUWLOOHU\DVVHWVDFURVVWKH$2ZKHUHWKH\FDQSURYLGHUHVSRQVLYHILUHVXSSRUW&KDUDFWHUL]HGE\PHHWLQJ
HQJDJHPHQWV DPEXVKHV DQG PRYHPHQW WR FRQWDFW UHTXHVWV IRU ILUH VXSSRUW GXULQJ MXQJOH RSHUDWLRQV DUH
XQDQWLFLSDWHGDQGUHTXLUHUDSLGUHDFWLRQE\ILHOGDUWLOOHU\XQLWVWRGHOLYHUHIIHFWLYHILUHV'LVSHUVLQJDUWLOOHU\
V\VWHPV DFURVV WKH $2 IDFLOLWDWHV WKLV UDSLG VXSSRUW E\ HQDEOLQJ XQLWV WR HVWDEOLVK PRUH GLUHFW VHQVRUWR
VKRRWHUOLQNV+RZHYHUFRPPDQGHUVHQVXUHWKDWXQLWVDUHSRVLWLRQHGIRUPXWXDOGHIHQVHDVWKLFNYHJHWDWLRQ
LQFUHDVHVYXOQHUDELOLW\WRJURXQGDWWDFN)LHOGDUWLOOHU\XQLWVRIWHQHVWDEOLVKILULQJSRVLWLRQVRUILUHEDVHVRQ
KLJKJURXQGWRLPSURYHWKHHIIHFWLYHQHVVRIILUHGLUHFWLRQUDGDUDVVHWVDQGPLWLJDWHWKHHIIHFWVRIVWHHSWHUUDLQ
 5HFRQQDLVVDQFHLVFULWLFDOWRLGHQWLI\LQJDSSURSULDWHILULQJSRVLWLRQVIRUDUWLOOHU\XQLWVRSHUDWLQJLQ
WKHMXQJOH6RIWRUVDWXUDWHGVRLOVWHHSVORSHVODFNRIRYHUKHDGFOHDUDQFHDQGPDVNLQJE\WUHHVDQGWHUUDLQ
FRPSOLFDWHWKHSRVLWLRQLQJRIILUHVDVVHWV,QDQDUHDZKHUHQRVXLWDEOHILULQJSRVLWLRQVDUHNQRZQWRH[LVWDQ
HQJLQHHUUHSUHVHQWDWLYHVKRXOGDFFRPSDQ\WKHILUHVUHFRQQDLVVDQFHSDUW\ZKHQLGHQWLI\LQJILULQJSRVLWLRQV
(QJLQHHUV FDQ LPSURYH WHUUDLQ ZKHQ XQLWV PXVW HVWDEOLVK ILULQJ SRVLWLRQV RQ SRRU WHUUDLQ )RU PRUH
LQIRUPDWLRQ RQ UHFRQQDLVVDQFH VHOHFWLRQ DQG RFFXSDWLRQ RI D ILULQJ SRVLWLRQ UHIHU WR $73  RU
0&73(>0&:3@

0XQLWLRQV
 7KHW\SHDQGTXDQWLW\RIPXQLWLRQVXVHGLQWKHMXQJOHHQYLURQPHQWGLIIHUVIURPRWKHUHQYLURQPHQWV
EDVHG XSRQ WKH RSHUDWLRQDO DQG PLVVLRQ YDULDEOHV WKH UHTXLUHPHQWV IRU SUHFLVLRQJXLGHG PXQLWLRQV LV
JHQHUDOO\ ORZHU /RZ SRSXODWLRQ GHQVLW\ DQG OLPLWHG LQIUDVWUXFWXUH LQ WKH MXQJOH OHDG WR IHZHU FROODWHUDO
GDPDJHFRQFHUQVDQGIHZHUUHVWULFWLRQVRQWKHXVHRIXQJXLGHGPXQLWLRQVDQGPXQLWLRQVZLWKODUJHUHIIHFWV
:KHQUHTXLUHGE\ PLVVLRQHQHP\WHUUDLQDQGZHDWKHUWURRSVDQGVXSSRUWDYDLODEOH²WLPHDYDLODEOHDQG
FLYLOFRQVLGHUDWLRQV0(777&PLVVLRQHQHP\WHUUDLQDQGZHDWKHUWURRSVDQGVXSSRUWDYDLODEOH²WLPH
DYDLODEOH0(777WURRSVFDQXVHSUHFLVLRQJXLGHGPXQLWLRQVWRPLWLJDWHFROODWHUDOGDPDJHQHJDWHGDQJHU
FORVHULVNVHQJDJHPRYLQJWDUJHWVDQGGHVWUR\KLJKYDOXHWDUJHWV+RZHYHUGHQVHIROLDJHPD\OLPLWWKHXVH
RIODVHUJXLGHGPXQLWLRQV'HQVHIROLDJHFDQOLPLWWKHODVHUGHVLJQDWRUVDELOLW\WRLOOXPLQDWHDWDUJHWVRLWFDQ
EHDFTXLUHGE\WKHJXLGDQFHVHFWLRQRIDZDUKHDGGXULQJWHUPLQDOJXLGDQFH
 &RPPDQGHUVH[HUFLVHFDUHZKHQHPSOR\LQJVXEPXQLWLRQVLQWKHMXQJOH7KHXVHRIVXEPXQLWLRQV
RQ VRIW RU VDWXUDWHG VRLO LQFUHDVHV WKH GXG UDWH ZKLFK PD\ LPSDFW IXWXUH PRYHPHQW DQG PDQHXYHU DQG
LQFUHDVHWKHULVNRIFROODWHUDOGDPDJH

0XQLWLRQV(IIHFWV
 &RPPDQGHUVFRQVLGHUWKHIROORZLQJZKHQUHTXHVWLQJLQGLUHFWILUHVXSSRUWLQWKHMXQJOH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

z 3UR[LPLW\DQGVXSHUTXLFNIXVHGURXQGVORVHPXFKRIWKHLUHIIHFWZKHQILUHGLQWRDUHDVZLWKGHQVH
WUHHFDQRSLHVE\H[SORGLQJLQWKHWUHHWRSV
z 'HOD\IXVHVJLYHEHWWHUHIIHFWVLQKHDY\YHJHWDWLRQ7KHIXVHWULJJHUVLQWKHWUHHWRSVEXWGHWRQDWHV
WKHURXQGLQWKHDLUDWDORZHUOHYHO+RZHYHUZKHQXVHGDJDLQVWWURRSVLQDUHDVZLWKVRIWVDWXUDWHG
VRLODQGQRFDQRS\WRWULJJHUWKHIXVHRYHUKHDGGHOD\URXQGVZLOOEXU\WKHPVHOYHVLQWKHJURXQG
DQGORVHWKHLUDQWLSHUVRQQHOHIIHFW
z 7LPH IXVHG URXQGV DUH QRW DV HIIHFWLYH LQ MXQJOHV ZLWK WKLFN FDQRSLHV GXH WR WKH IXVH LPSDFW
IXQFWLRQ7LPHIXVHVKRZHYHUZRUNYHU\HIIHFWLYHO\ZKHQXVHGIRUFORVHGHIHQVLYHILUHV²ZLWKLQ
WRIHHWWRPHWHUV²ZLWKKLJKH[SORVLYHPXQLWLRQV
z ,Q ORZ FDQRS\ MXQJOHV DLUEXUVWV FDQ LQFUHDVH FDVXDOW\ FDXVLQJ HIIHFWV E\ FUHDWLQJ GDQJHURXV
VKUDSQHOIURPWKHGHVWUR\HGFDQRS\$VEXUVWLQJPXQLWLRQVWKLQRXWWKHWUHHFDQRS\WURRSVPD\
QHHGWRVZLWFKWRSUR[LPLW\IXVHRUWLPHIXVHLIWKH\ZDQWDLUEXUVWVDVWKHPHWKRGRIDWWDFN
z 8QLWVDYRLGXVLQJVXSHUTXLFNIXVHVLQPXGG\RUVDWXUDWHGWHUUDLQVXFKDVVZDPSVRUULFHILHOGV
0XGDQGVDWXUDWHGVRLODEVRUEWKHEODVWDQGWKHQGLUHFWVKHOOIUDJPHQWVXSLQVWHDGRIRXWWKHUHE\
OLPLWLQJWKHFDVXDOW\SURGXFLQJHIIHFWV
 +XPLGLW\PD\GHJUDGHWKHDELOLW\RISURSHOODQWWRDFKLHYHGHVLUHGUDQJHV7URRSVHPSOR\PHDVXUHV
WRNHHSSRZGHULQFUHPHQWVGU\E\²
z &RYHULQJDQGSURWHFWLQJPXQLWLRQVIURPUDLQDQGRWKHUIRUPVRISUHFLSLWDWLRQ
z 6WRULQJPXQLWLRQVRIIWKHJURXQGLQZHOOYHQWLODWHGDUHDV
z 5RWDWLQJVWRFNVDQGILULQJROGHUPXQLWLRQVEHIRUHILULQJQHZHUVWRFNV

2EVHUYDWLRQ
 *URXQGREVHUYDWLRQLQWKHMXQJOHLVOLPLWHGE\VKDUSWHUUDLQDQGGHQVHYHJHWDWLRQ7KHVHOLPLWDWLRQV
LPSHGHJURXQGREVHUYHUV¶DELOLW\WRORFDWHDQGLGHQWLI\WDUJHWVDVZHOODVWKHLUDELOLW\WRSRVLWLYHO\LGHQWLI\
DGMDFHQWIULHQGO\XQLWVRUHYHQWKHLURZQORFDWLRQ7KHVHUHVWULFWLRQVLQFUHDVHWKHULVNRIIUDWULFLGH:KHQ
DYDLODEOHXQLWVHPSOR\DHULDOREVHUYDWLRQLQFOXGLQJMRLQWWHUPLQDODWWDFNFRQWUROOHUVWRGLUHFWDQGREVHUYH
LQGLUHFWILUHVIURPWKHDLU)RUPRUHLQIRUPDWLRQRQREVHUYHGILUHVUHIHUWR$73

0RELOLW\
 %DGZHDWKHUODFNRIURDGVDQGUHVWULFWLYHWHUUDLQPD\LPSDLUWKHPRELOLW\RIILHOGDUWLOOHU\XQLWV,I
XQLWV XVH URDGVIRU PRYHPHQW WKH\ PXVWSUHSDUHSURSHUO\5RDGVLGHV PD\ODFNDGHTXDWHURRP IRU ILULQJ
SRVLWLRQVGXULQJURDGPRYHPHQWV5RDGPRYHPHQWUHTXLUHVJURXQGVHFXULW\IRUFHVVXSSRUWLQJDUWLOOHU\DQG
DWWDFNDYLDWLRQRU&$6WRSURYLGHSURWHFWLRQDQGILUHVXSSRUW8QLWVPD\DOVRUHTXLUHHQJLQHHUVXSSRUWWR
FOHDUDQGPDLQWDLQURDGVDQGWRSUHSDUHDGHTXDWHODQGLQJ]RQHVLIWKH\PXVWPRYHDUWLOOHU\E\DLU

6XUYH\
 /LQHRIVLJKWOLPLWDWLRQVVHYHUHO\KDPSHUVXUYH\RSHUDWLRQV7DUJHWDUHDVXUYH\ PD\EHYLUWXDOO\
LPSRVVLEOH &RPPRQ JULG UHGXFHV WKH DPRXQW RI VXUYH\ HUURU EHWZHHQ ILULQJ XQLWV DQG LV UHTXLUHG WR
DFFXUDWHO\PDVVILUHV+RZHYHUDFFXUDWHVXUYH\GDWDPD\QRWDOZD\VEHDYDLODEOHGXHWRPLVVLRQYDULDEOHV
5HJLVWUDWLRQFDQHOLPLQDWHHUURUVLQILULQJFDXVHGE\DODFNRIVXUYH\FRQWUROEXWUHJLVWUDWLRQPD\QRWEH
SRVVLEOH RU SUDFWLFDO GXH WR VHFXULW\ RU DPPXQLWLRQ UHTXLUHPHQWV &RQVHTXHQWO\ HIIHFWLYH EDWWHU\ OHDGHUV
SURILFLHQWO\ LPSOHPHQW KDVW\ VXUYH\ WHFKQLTXHV SUHVHQWHG LQ $73  DQG 0&53 (
0&:3

%DWWHU\'HIHQVH
 %HFDXVHRIWKHLUOLPLWHGVHOIGHIHQVHFDSDELOLWLHVDUWLOOHU\XQLWVDUHFRORFDWHGZLWKDQRWKHUXQLWIRU
PXWXDOGHIHQVHRUDUHDXJPHQWHGZLWKDVHFXULW\HOHPHQWLIDYDLODEOH:KHQSRVVLEOHFDQQRQDUWLOOHU\DUUD\
WKHLUKRZLW]HUVLQDVWDUIRUPDWLRQIRUGHJUHHGHIHQVLYHFRYHUDJH+RZHYHUGXHWRWHUUDLQUHVWULFWLRQV
XQLWVFDQXVHDOD]\³:´RUYDULDWLRQWKHUHRI/HDGHUVQHHGWRSODQIRUDGGLWLRQDOVHFXULW\LQWKHIRUPRIILUH
VXSSRUWSURYLGHGE\DGMDFHQWDUWLOOHU\DQGPRUWDUXQLWV:KHQFRORFDWHGRUDXJPHQWHGE\DVHFXULW\HOHPHQW
WKHEDWWHU\¶VKRZLW]HUV)'&DQGWDFWLFDORSHUDWLRQVFHQWHUIRUPDQLQQHUSHULPHWHUZLWKWKHVHFXULW\HOHPHQW

6HSWHPEHU $730&73& 

&KDSWHU

RFFXS\LQJWKHRXWHUSHULPHWHU(DFKKRZLW]HUKDVDQDVVLJQHGVHFWRUIRUGLUHFWILUHDQQRWDWHGRQDUDQJHFDUG
ZLWKWKHGDWDQHFHVVDU\WRHQJDJHWDUJHWVZLWKLQWKHDVVLJQHGVHFWRU
 /HDGHUVFDQLPSURYHEDWWHU\GHIHQVHE\FRORFDWLQJRQHPRUWDUWXEHZLWKWKHEDWWHU\7KHPRUWDU
FDQ SURYLGH FORVHLQ LOOXPLQDWLRQ DQG FORVH LQGLUHFW ILUH VXSSRUW $V VRRQ DV SRVVLEOH KRZLW]HU SRVLWLRQV
VKRXOGEHSDUDSHWHGYLWDOLQVWDOODWLRQVGXJLQDQGILJKWLQJDQGVOHHSLQJSRVLWLRQVSUHSDUHG

Note. %DWWHU\ GHIHQVH LV SUHVHQWHG LQ PRUH GHWDLO LQ $73  RU 0&53 (
0&:3

$GMXVWPHQWRI,QGLUHFW)LUHE\6RXQG
 /HDGHUVHQVXUHWURRSVDGMXVWLQGLUHFWILUHE\LQDMXQJOHHQYLURQPHQWZKHQWKH\FDQQRWREWDLQOLQH
RIVLJKWZLWKWKHLPSDFWLQJPXQLWLRQV3DUDJUDSKVWKURXJKGLVFXVVWHFKQLTXHVDVHIIHFWLYHLQWKH
DGMXVWPHQWRIURFNHWVDUWLOOHU\PRUWDUVDQGDHULDOILUHV

'$1*(5
$GMXVWPHQWE\VRXQGGRHVQRWDOORZIRUSRVLWLYHLGHQWLILFDWLRQRI
WKHWDUJHW,WPXVWRQO\EHXVHGZKHQFOHDUO\DSSURYHGLQWKHUXOHV
RIHQJDJHPHQWRUZLWKH[SOLFLW FRPPDQGDSSURYDO7KHREVHUYHU
PXVWDOHUWWKHILUHGLUHFWLRQFHQWHU)'&ZKHQDGMXVWLQJE\VRXQG

 7KHEDVLFSULQFLSOHRIDGMXVWPHQWE\VRXQGLVWKDWWKHGLUHFWLRQDQGGLVWDQFHWRWKHWDUJHWDUHNQRZQ
DQGWKHREVHUYHUFDQFDOFXODWH GLUHFWLRQDQGGLVWDQFHWRWKHH[SORVLRQRIWKHURXQGIURPWKHVRXQGRIWKH
H[SORVLRQ7KHREVHUYHUFRPSDUHVGDWDSRLQWVWRGHWHUPLQHWKHDSSURSULDWHFRUUHFWLRQLQGHYLDWLRQDQGUDQJH
$ SUREOHPHQFRXQWHUHGLQWKLVPHWKRGRFFXUVEHFDXVHWKHKHDY\IROLDJHGLVWRUWVVRXQGDQGPDNHVLWGLIILFXOW
WRGHWHUPLQHUDQJHRUODWHUDOVKLIWFRUUHFWLRQV
 8SRQKHDULQJWKHEXUVWRIWKHDGMXVWLQJURXQGWKHREVHUYHUHVWLPDWHVWKHGLUHFWLRQWRWKHEXUVWDQG
FRPSDUHVLWZLWKWKHGLUHFWLRQWRWKHWDUJHWWKHQFRQYHUWVWKHGHYLDWLRQWRDODWHUDOVKLIWLQPHWHUVXVLQJ
HVWLPDWHGUDQJHWRWKHWDUJHW'LVWDQFHWRWKHDGMXVWLQJSRLQWLVGLIILFXOWWRMXGJHWKHUHIRUHWKHREVHUYHUPD\
KDYHWRXVHDFUHHSLQJWHFKQLTXHWRDGMXVWRQWRWKHWDUJHW7KHREVHUYHUFDQGHWHUPLQHGLVWDQFHE\PHDVXULQJ
WKHWLPHLWWDNHVIRUWKHVRXQGWREHKHDUGDQGPXOWLSO\LQJWKHWLPHLQWHUYDOE\WKHVSHHGRIVRXQGIHHW
>PHWHUV@SHUVHFRQG7RKHOSWKHREVHUYHUGHWHUPLQHGLVWDQFHDFFXUDWHO\WKHILUHGLUHFWLRQFHQWHU)'&
PXVWDQQRXQFHWKHSUHFLVHPRPHQWRILPSDFW7KHUHLVDGLVWLQFWWHFKQLTXHXVHGWRGHWHUPLQHWKHFRUUHFWLRQ
LQGHYLDWLRQDQGUDQJH

&$87,21
7KH REVHUYHU PXVW XVH FDXWLRQ LQ YHU\ EURNHQ WHUUDLQ ,Q KLOOV DQG
PRXQWDLQV VRXQG PD\ WUDYHO DURXQG D KLOO EHIRUH LW DUULYHV DW WKH
REVHUYHU¶VSRVLWLRQDQGPD\SURGXFHDIDOVHGLUHFWLRQWRWKHEXUVW

Correction in Deviation
 7KHGLUHFWLRQIURPWKHREVHUYHUWRWKHWDUJHWLVPHDVXUHGIURPDPDSRUE\FRPSDVV7KHREVHUYHU
PHDVXUHVWKH GLUHFWLRQWRWKH H[SORVLRQ ZLWKDFRPSDVV7KHVHWZRD]LPXWKVH[SUHVVHGLQ PLOV IRUPDQ
DQJOHDVLOOXVWUDWHGLQILJXUH

Note.'HJUHHVPD\EHVXEVWLWXWHGLIQHFHVVDU\

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

)LJXUH&RPSXWLQJWKHFRUUHFWLRQLQGHYLDWLRQ

Correction in Range
 7KHREVHUYHUFDQPHDVXUHRUHVWLPDWHWKH GLVWDQFHIURPWKHWDUJHWRQD PDS7KHGLVWDQFHWRWKH
H[SORVLRQRIWKHURXQGLVFDOFXODWHGE\FRXQWLQJWKHQXPEHURIVHFRQGVIURPWKHLPSDFWRIWKHSURMHFWLOHXQWLO
WKHREVHUYHUKHDUVWKHH[SORVLRQ7KHREVHUYHUPXOWLSOLHVWKHQXPEHURIVHFRQGVE\WKHVSHHGRIVRXQG
IHHWPHWHUVVHFRQGDQGWKHQDGGVRUGURSVWKHUHVXOWLQJGLVWDQFHDVDSSURSULDWH
 7RWHOOWKHREVHUYHUZKHQWKHURXQGLPSDFWVWKH )'&SURYLGHVVSODVKDQGFRXQW,QVSODVKDQG
FRXQWWKH)'&VHQGV6SODVKIRXUWKUHHWZRRQH²LPSDFW2QWKHZRUGLPSDFWWKHURXQGODQGVDQG
WKHREVHUYHUVWDUWVFRXQWLQJWKHVHFRQGVXQWLOWKH\KHDUWKHH[SORVLRQ6HH ILJXUHRQSDJH IRUDQ
H[DPSOHRIFRPSXWLQJFRUUHFWLRQLQUDQJH

Note.:KHQUHTXHVWLQJXQREVHUYHGILUHVXSSRUWWKHREVHUYHUPXVWUHTXHVWDVSODVKDQGFRXQWIURP
WKH)'&E\VWDWLQJ³FDQQRWREVHUYHVSODVKDQGFRXQW´GXULQJWKHFDOOIRUILUH7KH)'&GRHVQRW
QRUPDOO\SURYLGHDVSODVKDQGFRXQWZKHQSURYLGLQJREVHUYHGILUHVXSSRUW

Other Considerations
 %HFDXVHWKHLPSDFWLVXQREVHUYHGDGMXVWLQJILUHE\VRXQGGRHVQRWSURYLGHDGHTXDWHLQIRUPDWLRQ
RQZKHWKHUWKHULJKWIXVLQJZDVXVHGGXULQJWKHILUHPLVVLRQ%HFDXVHWKHKHLJKWDQGGHQVLW\RIYHJHWDWLRQ
DQG WKH VXUIDFH FRPSRVLWLRQ PD\ SUHYHQW URXQGV IURP GHWRQDWLQJ HIIHFWLYHO\ WURRSV PD\ UHTXLUH D
FRPELQDWLRQRITXLFNIXVHVDQGGHOD\IXVHVZKHQDGMXVWLQJILUHE\VRXQG)RUPRUHLQIRUPDWLRQRQFDOOIRU
ILUHDQGXQREVHUYHGILUHVVHH$73

6HSWHPEHU $730&73& 

&KDSWHU

)LJXUH&RPSXWLQJWKHFRUUHFWLRQLQUDQJH

6867$,10(17/2*,67,&6:$5)*+7,1*)81&7,21
 LogisticsLVSODQQLQJDQGH[HFXWLQJWKHPRYHPHQWDQGVXSSRUWRIIRUFHV-37KH0DULQH&RUSV
DPSOLILFDWLRQLVDOODFWLYLWLHVUHTXLUHGWRPRYHDQGVXVWDLQPLOLWDU\IRUFHV/RJLVWLFVLVRQHRIWKHZDUILJKWLQJ
IXQFWLRQV0&537KHsustainment warfighting functionLVWKHUHODWHGWDVNVDQGV\VWHPVWKDWSURYLGH
VXSSRUW DQG VHUYLFHV WR HQVXUH IUHHGRP RI DFWLRQ H[WHQGHG RSHUDWLRQDO UHDFK DQG SURORQJ HQGXUDQFH
$'3 &RPPDQGHUV FRQGXFWLQJ VXVWDLQPHQWORJLVWLFV LQ VXSSRUW RI XQLILHG ODQG RSHUDWLRQV PXVW
XQGHUVWDQGWKHGLYHUVHUHTXLUHPHQWVRIWKHVXSSRUWHGIRUPDWLRQVDQGHQYLURQPHQWDOFKDOOHQJHVRIFRQGXFWLQJ
RSHUDWLRQVLQDMXQJOHHQYLURQPHQW
 7KH $UP\ LGHQWLILHV IRXU HOHPHQWV RI WKH VXVWDLQPHQW ZDUILJKWLQJ IXQFWLRQ ORJLVWLFV ILQDQFLDO
PDQDJHPHQWSHUVRQQHOVHUYLFHVDQGKHDOWKVHUYLFHVXSSRUW7KH0DULQH&RUSVFODVVLILHVORJLVWLFVHOHPHQWV
LQWRVL[IXQFWLRQDODUHDVVXSSO\PDLQWHQDQFHWUDQVSRUWDWLRQJHQHUDOHQJLQHHULQJKHDOWKVHUYLFHVDQGRWKHU
VHUYLFHV7KHVHRWKHUVHUYLFHVLQFOXGHOHJDOH[FKDQJHIRRGVHUYLFHGLVEXUVLQJSRVWDOELOOHWLQJUHOLJLRXV
PRUWXDU\DQGPRUDOHDQGUHFUHDWLRQVHUYLFHV
 6XVWDLQPHQWORJLVWLFVPDLQWDLQVRSHUDWLRQDOPRPHQWXPE\GHOLYHULQJVXSSOLHVDQGVHUYLFHVDVIDU
IRUZDUGDVSRVVLEOH6XVWDLQPHQWORJLVWLFVFRPPDQGHUVPXVWDFWUDWKHUWKDQUHDFWWRVXSSRUWUHTXLUHPHQWV
7KHH[LVWHQFHRIKDELWXDOVXSSRUWUHODWLRQVKLSVIDFLOLWDWHVWKHDELOLW\WRDQWLFLSDWHUHTXLUHPHQWV
 86IRUFHVLQWKHMXQJOHRSHUDWHDWWKHHQGRIDORQJFRPSOLFDWHGDQGSRWHQWLDOO\WHQXRXV /2&
,QKHUHQWWRWKHVXFFHVVRIDQ\WDFWLFDORSHUDWLRQLVFRQWLQXRXVVXVWDLQPHQWORJLVWLFVSODQQLQJDQGUHVSRQVLYH
VXSSRUW 7KH MXQJOH HQYLURQPHQW FKDOOHQJHV HYHU\ HOHPHQW RI WKH VXVWDLQPHQW ZDUILJKWLQJ IXQFWLRQ
&RPPDQGHUV LGHQWLI\ WKH FKDOOHQJHV DQG WKH ORJLVWLFLDQ PXVW ZRUN WR RYHUFRPH WKHP $ XQLW¶V WDFWLFDO
HIIHFWLYHQHVV LQ WKH MXQJOH GHSHQGV RQ WKH VXVWDLQPHQWORJLVWLFV DYDLODELOLW\ RI VXSSOLHV +RZHYHU D
IRUPDWLRQ¶V ODUJHVW YXOQHUDELOLW\ OLHV LQ LWV H[SRVHG /2&V DQG WKH LPPRELOLW\ RI LWV EDVHV RI VXSSO\ DQG
VXSSRUW
 7KHODFNRIUHVRXUFHVDQGLQIUDVWUXFWXUHLQWKHMXQJOHSRVHVDVLJQLILFDQWFKDOOHQJHIRUORJLVWLFLDQV
7KHODFNRISRUWVDLUILHOGVUDLOZD\VDQGLPSURYHGURDGVOLPLWWKHFDSDFLW\IRUVXVWDLQPHQWWKURXJKSXW7KH
SRWHQWLDO ODFN RI ORFDOO\ DYDLODEOH SRWDEOH ZDWHU SODFHV LQFUHDVHG GHPDQGV RQ ZDWHU SXULILFDWLRQ
WUDQVSRUWDWLRQDQGVWRUDJHDVVHWV $GGLWLRQDOO\WKHHQYLURQPHQWFDQVHYHUHO\DIIHFWHTXLSPHQW UHTXLULQJ
LQFUHDVHG OHYHOV RI PDLQWHQDQFH VXSSRUW WR PDLQWDLQ HTXLSPHQW UHDGLQHVV DQG VHUYLFHDELOLW\ 7KH OLPLWHG
QXPEHURILPSURYHG/2&VFDSDEOHRIIXQFWLRQLQJDVPDLQVXSSO\URXWHV065VRUDOWHUQDWHVXSSO\URXWHV
$65VUHTXLUHIUHTXHQWUHSDLUDQGPDLQWHQDQFHGXHWRKHDY\XVH7KHOLPLWHGQXPEHURI/2&VDOVRUHTXLUH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

FDUHIXO PDQDJHPHQW E\ PRYHPHQW FRQWURO WHDPV WR V\QFKURQL]H PRYHPHQW DQG PDLQWDLQ UHVSRQVLYH
VXVWDLQPHQWVXSSRUW
 0RELOLW\DQGWUDQVSRUWDWLRQUHVWULFWLRQVPD\UHTXLUHORJLVWLFLDQVWRLPSURYLVHPHWKRGVRIUHVXSSO\
$HULDO UHVXSSO\ WKH XVH RI SDFN DQLPDOV DQG KXPDQ SRUWDJH ZRUN DV SURYHQ PHWKRGV RI UHVXSSO\ LQ
UHVWULFWLYHWHUUDLQ
 &KDUDFWHUL]HG E\ XQSUHGLFWDEOH VPDOOXQLW FRPEDW WKH VHFXULW\ WKUHDW GXULQJ MXQJOH RSHUDWLRQV
UHTXLUHV WKDW WURRSV IUHTXHQWO\ SDWURO /2&V DQG HVFRUW FRQYR\V 7R PLWLJDWH FKDOOHQJHV DVVRFLDWHG ZLWK
VHFXULQJH[WHQGHG/2&VXQLWVSHUIRUPVXVWDLQPHQWDFWLYLWLHVDVIDUIRUZDUGDVWKHWDFWLFDOVLWXDWLRQSHUPLWV
7KLVQRWRQO\LPSURYHVUHVSRQVHWLPHEXWDOVRUHGXFHVURDGPRYHPHQWDQGDOORZVVXVWDLQPHQWIRUFHVWRWDNH
DGYDQWDJHRIWKHVHFXULW\RIIHUHGE\FRPEDWXQLWV

0$,17(1$1&( 5(3$,5 5(&29(5< $1' %$77/('$0$*($66(660(17$1'5(3$,5

 0DLQWHQDQFHLQYROYHVDOODFWLRQVWDNHQWRUHWDLQPDWHULHOLQDVHUYLFHDEOHFRQGLWLRQRUWRUHVWRUHLWWR
VHUYLFHDELOLW\)RUWKH0DULQH&RUSVPDLQWHQDQFHLQFOXGHVLQVSHFWLRQWHVWLQJVHUYLFLQJDQGFODVVLILFDWLRQ
DVWRVHUYLFHDELOLW\UHSDLUUHEXLOGLQJDQGUHFODPDWLRQ,WLVDOOVXSSO\DQGUHSDLUDFWLRQWDNHQWRNHHSDIRUFH
LQFRQGLWLRQWRFDUU\RXWLWVPLVVLRQ6HH0&73(IRUPRUHRQPDLQWHQDQFH7KH$UP\¶VWZROHYHOVRI
PDLQWHQDQFHDUHILHOGPDLQWHQDQFHDQGVXVWDLQPHQWPDLQWHQDQFH 7KH0DULQH&RUSVXWLOL]HVWKUHHFDWHJRULHV
RI PDLQWHQDQFH RUJDQL]DWLRQDO LQWHUPHGLDWH DQG GHSRW )RU PRUH LQIRUPDWLRQ RQ PDLQWHQDQFH VHH
$73DQG0&73(
 7KH KLJK KXPLGLW\ DQG WHPSHUDWXUHV SUHYDOHQW LQ MXQJOH DUHDV ZLOO LQFUHDVH PDLQWHQDQFH
UHTXLUHPHQWV3UHYHQWLYHPDLQWHQDQFHRQDQ\LWHPDIIHFWHGE\PRLVWXUHDQGKHDWLVH[WUHPHO\LPSRUWDQW)RU
PRUHUHVSRQVLYHPDLQWHQDQFHVXSSRUWLQFUHDVHWKHTXDQWLW\RIUHSDLUSDUWVLQVKRSVWRFNDQGEHQFKVWRFNWKDW
GHWHULRUDWHXQGHUKLJKWHPSHUDWXUHDQGKLJKKXPLGLW\FRQGLWLRQV
 7RPDLQWDLQRSHUDWLRQDOUHDGLQHVVUDWHV6ROGLHUV0DULQHVUHSDLUGLVDEOHGHTXLSPHQWDVFORVHWRWKH
VLWHRIGDPDJHDVWKHWDFWLFDOVLWXDWLRQDQGDYDLODEOHUHVRXUFHVSHUPLW7URRSVFDQPDNHWKHVHUHSDLUVE\XVLQJ
DYLDWLRQDVVHWVWRWUDQVSRUWPDLQWHQDQFHFRQWDFWWHDPVDQGUHSDLUSDUWVWRWKHSRLQWRIQHHG(YDFXDWLRQVKRXOG
EHOLPLWHGZKHQSRVVLEOH
 'XHWRWKHGLVSHUVHGQDWXUHRIMXQJOHRSHUDWLRQVILHOGPDLQWHQDQFHSHUVRQQHODQGFRQWDFWWHDPVZLOO
OLNHO\EHGLVWULEXWHGWKURXJKRXWWKH$2%HFDXVHPDQ\VPDOOXQLWVPD\ODFNILHOGPDLQWHQDQFHSHUVRQQHO
YHKLFOHFUHZVWUDLQWRPDNHDVPDQ\DGMXVWPHQWVDQGUHSDLUVDVWKH\FDQ*HQHUDOJXLGHOLQHVIRUMXQJOHUHSDLU
z 5HSDLURQO\ZKDWLVQHFHVVDU\WRPDNHWKHHTXLSPHQWFRPEDWHIIHFWLYH
z 5HFRYHUGLVDEOHGHTXLSPHQWWRWKHQHDUHVWVHFXUHVLWHDQGFRQGXFWRQWKHVSRWUHSDLU

 623VIRUUHFRYHU\DQGUHSDLULGHDOO\LQFOXGH²
z *XLGHOLQHVIRUFUHZOHYHOUHFRYHU\DQGEDWWOHGDPDJHDVVHVVPHQWDQGUHSDLU%'$5
z &ULWHULDIRUUHFRYHU\E\IRUZDUGPDLQWHQDQFHWHDPV
z &ULWHULDIRUUHFRYHU\E\ILHOGPDLQWHQDQFHSHUVRQQHO
z 3ULRULWLHVIRUUHFRYHU\E\YHKLFOHW\SH
z /LPLWDWLRQVRQILHOGH[SHGLHQWV)RUH[DPSOHWKHGLVWDQFHRUWLPHRYHUZKLFKRQHWDQNLVDOORZHG
WRWRZDQRWKHUWDQNFRQVLGHULQJWKHKHDWEXLOGXSLQWKHWUDQVPLVVLRQLQDKRWMXQJOHHQYLURQPHQW
z 0HWKRGVIRUWKHUHFRYHU\DQGUHSDLURIVLJQDO(:DQGFRPPXQLFDWLRQVHTXLSPHQW
z 0HWKRGV DQG SURWRFROV IRU WKH GHVWUXFWLRQ RI GDPDJHG VHQVLWLYH HTXLSPHQW VXFK DV VLJQDO
FRPPDQGDQGFRQWURORUFRPPXQLFDWLRQVHTXLSPHQW
z 0HWKRGVRIVHFXULW\IRUUHFRYHU\WHDPV

 %'$5LVWKHSURFHGXUHXVHGWRUDSLGO\UHWXUQGLVDEOHGHTXLSPHQWWRWKHRSHUDWLRQDOFRPPDQGHUE\
ILHOGH[SHGLHQWUHSDLURIFRPSRQHQWV%'$5UHVWRUHVWKHPLQLPXPHVVHQWLDOFRPEDWFDSDELOLWLHVQHFHVVDU\
WRVXSSRUWDVSHFLILFFRPEDWPLVVLRQRUWRHQDEOHWKHHTXLSPHQWWRVHOIUHFRYHU7URRSVDFFRPSOLVK%'$5
E\ E\SDVVLQJ FRPSRQHQWV RU VDIHW\ GHYLFHV FDQQLEDOL]LQJ SDUWV IURP OLNH RU ORZHU SULRULW\ HTXLSPHQW
IDEULFDWLQJUHSDLUSDUWVMXU\ULJJLQJWDNLQJVKRUWFXWVWRVWDQGDUGPDLQWHQDQFHDQGXVLQJVXEVWLWXWHIOXLGV
PDWHULDOVRUFRPSRQHQWV2SHUDWRUVDQGFUHZPDLQWHQDQFHWHDPVRUUHFRYHU\WHDPVPD\SHUIRUP%'$5
6HH$730&53(>0&53$@IRUPRUHLQIRUPDWLRQRQUHFRYHU\DQG%'$5

6HSWHPEHU $730&73& 

&KDSWHU

',675,%87,21
 &RPPDQGHUV XVH WKURXJKSXW GLVWULEXWLRQ DQG SUHFRQILJXUHG SDFNDJHV RI HVVHQWLDO LWHPV WR KHOS
PDLQWDLQ RSHUDWLRQDO PRPHQWXP DQG WHPSR LQ WKH MXQJOH /RJLVWLFV XQLWV DQG PDWHULHO UHPDLQ FORVH WR D
PDQHXYHUIRUFHWRHQVXUHVKRUWWXUQDURXQGWLPHIRUVXSSOLHVDQGVHUYLFHV7KLVLQFOXGHVXSORDGLQJDVPXFK
FULWLFDOPDWHULHO²VXFKDVSHWUROHXPRLOVDQGOXEULFDQWVNQRZQDV32/DQGDPPXQLWLRQ²DVSRVVLEOH
 7KH GLYHUVH WHUUDLQ ZHDWKHUDQGYHJHWDWLRQLQWKHMXQJOH DIIHFWWKHRUJDQL]DWLRQ VWDWLRQLQJDQG
VHFXULW\FRQVLGHUDWLRQVIRUVXVWDLQPHQWXQLWV,IDYDLODEOHDHULDOUHVXSSO\ZRUNVHIIHFWLYHO\IRUUHVXSSO\LQJ
VPDOOXQLWVLQWKHMXQJOH7KHUHVSRQVLYHQHVVSURYLGHGE\DHULDOUHVXSSO\UHTXLUHV VPDOOXQLWVWRVWRFNSLOH
IHZHUVXSSOLHVLQWKHFRPEDWWUDLQV:LWKIHZHUVXSSOLHVUHTXLUHGRQKDQGWKHFRPEDWWUDLQVPD\RQO\FRQVLVW
RIPHGLFVDPDLQWHQDQFHHOHPHQWDQGVPDOODPRXQWVRIUDWLRQVDPPXQLWLRQDQGOXEULFDQWV7KHUHPDLQGHU
RIWKHORJLVWLFDODVVHWVZLOOEHORFDWHGLQWKHVXSSRUWDUHDWRLQFOXGHSHWUROHXPRLOVDQGOXEULFDQWVPRVW
YHKLFOHV VWRFNSLOHG DPPXQLWLRQ DQG RWKHU RUGQDQFH LWHPV WKH DLG VWDWLRQ UDWLRQV PDLQWHQDQFH FRQWDFW
WHDPVDQGZDWHUSXULILFDWLRQHTXLSPHQW
 7KH DYDLODELOLW\ RI DGHTXDWH VXSSOLHV DQG WUDQVSRUWDWLRQ WR VXVWDLQ DQ RSHUDWLRQ EHFRPHV PRUH
FULWLFDO ZLWK FHUWDLQ FRQGLWLRQV 7KHVH FRQGLWLRQ LQFOXGH WKH RSHUDWLRQ SURJUHVVHV XQLWV PRYH DZD\ IURP
H[LVWLQJURDGDQGWUDLOVWKHVXSSO\/2&VOHQJWKHQDQGEHFRPHPRUHFRPSOLFDWHGWKHTXDQWLW\RISHWUROHXP
RLOVDQGOXEULFDQWVUHTXLUHGWRPRYHVXSSOLHVLQFUHDVHVDQGWKHUHTXLUHPHQWVIRUUHSDLUDQGUHSODFHPHQWRI
ZHDSRQV\VWHPVLQFUHDVH6XVWDLQPHQWXQLWVLQGLUHFWVXSSRUWRIPDQHXYHUXQLWVPXVWEHDVPRELOHDVWKH
IRUFHVWKH\ VXSSRUW ZKLFKLV H[WUHPHO\FKDOOHQJLQJ ZKHQ FRQGXFWLQJGLVPRXQWHG PDQHXYHULQWKH MXQJOH
HQYLURQPHQW &RPPDQGHUV PD\ QHHG WR WDVNRUJDQL]H VXVWDLQPHQW XQLWV WR SURYLGH WKH SURSHU VXSSRUW WR
GLVPRXQWHGPDQHXYHUIRUFHVDWWKHSRLQWRIQHHG
 7KH MXQJOH RIIHUV H[FHOOHQW WHUUDLQ IRU FRQFHDOPHQW GHILODGH DQG GLVSHUVLRQ 7UDLQV SRVLWLRQ IDU
HQRXJKIRUZDUGWRUHVSRQGTXLFNO\\HWIDUHQRXJKWRWKHUHDUWRKDYHPLQLPXPH[SRVXUHWRWKHHQHP\,I
WKHPDMRULW\RIUHVXSSO\LVGRQHE\DLUWKHFRPEDWWUDLQVPD\EHORFDWHGZLWKWKHILHOGWUDLQVLQWKHEULJDGH
VXSSRUWDUHD,ISRVVLEOHXQLWVORFDWHDOOWUDLQVQHDUODQGLQJ]RQHV)LHOGFRPEDWDQGFRPSDQ\WUDLQVSRVLWLRQ
FORVHWR/2&VZKLFKXQLWVVRPHWLPHVXVHDVDQDOWHUQDWHPHWKRGRIUHVXSSO\,IQRQHRIWKHVHDUHDYDLODEOH
WKHQXQLWVPD\QHHGWRFRQVWUXFWODQGLQJ]RQHVDQGVXSSO\URXWHV
 6HFXULQJWKHVXSSRUWDUHDFDQSURYHFKDOOHQJLQJLQWKHMXQJOHDVHQHP\LQILOWUDWLRQLQWRWKHUHDUDUHD
LV D FRQVWDQW WKUHDW :LWKLQ D GLYLVLRQ RU FRUSV VXSSRUW DUHD D GHVLJQDWHG XQLW VXFK DV D PDQHXYHU
HQKDQFHPHQWEULJDGHSURYLGHVDUHDVHFXULW\WHUUDLQPDQDJHPHQWPRYHPHQWFRQWUROPRELOLW\VXSSRUWDQG
FOHDUDQFHRIILUHV$WEULJDGHDQGEHORZWKHVXSSRUWDUHDJHWVVHFXULW\IURPDVVHWVLQWHUQDOWRWKHEULJDGH

:KHHOHGDQG7UDFNHG9HKLFOHV
 :KHHOHG YHKLFOHV DUH QRUPDOO\ UHVWULFWHG WR URDGV DQG ZLGHU WUDLOV DQG HYHQ WKHVH PD\ SURYH
LPSDVVDEOHGXULQJKHDY\UDLQV,QDUHDVZLWKVLJQLILFDQWO\UHVWULFWLYHWHUUDLQVXSSOLHVPD\QHHGWREHFURVV
ORDGHGIURPZKHHOHGWRWUDFNHGYHKLFOHVDWFHUWDLQSRLQWVLQWKHGLVWULEXWLRQQHWZRUN$IWHUZKHHOHGYHKLFOHV
WUDQVSRUWWKHVXSSOLHVDVIDUIRUZDUGDVSRVVLEOHWURRSVORDGVXSSOLHVRQWRWUDFNHGYHKLFOHVFDSDEOHRIPRYLQJ
WKHPDFURVVXQLPSURYHGWHUUDLQDQG/2&V,QH[WUHPHO\GLIILFXOWWHUUDLQWURRSVPD\QHHGWRIXUWKHUWUDQV
ORDGVXSSOLHVWRSDFNDQLPDOVRUKXPDQSRUWHUVWRFRPSOHWHWKHGLVWULEXWLRQ

,QODQG:DWHUZD\V
 ,QODQG ZDWHUZD\V SURYLGH DQ LPSRUWDQW SDUW RI WKH WUDQVSRUWDWLRQ V\VWHP LQ UHPRWH DUHDV /DUJH
ULYHUVPD\HQDEOHVPDOOZDWHUFUDIWWRSHQHWUDWHVHYHUDOKXQGUHGPLOHVLQODQG:KHUHVPDOOHUVWUHDPVEUDQFK
RXWDXQLWPD\HVWDEOLVKWUDQVIHUSRLQWVIRUWKHWUDQVORDGLQJRIFDUJRLQWRVPDOOHUZDWHUFUDIW$ULYHUWKDWLV
QRUPDOO\ YHU\VKDOORZGXULQJWKHGU\VHDVRQ ZLOOEHGHHSHUGXULQJWKHUDLQ\ VHDVRQSHUPLWWLQJWUDYHOE\
ODUJHUFUDIW$XQLWVKRXOGHVWDEOLVKVXSSO\SRLQWVKLJKHQRXJKDERYHWKHZDWHUOLQHWRSUHYHQWGDPDJHLQWKH
HYHQWRIUDSLGO\ULVLQJZDWHUOHYHOV

)L[HG:LQJ7UDQVSRUW$LUFUDIW
 )L[HGZLQJ DLUFUDIW FDQ WUDYHO JUHDWHU GLVWDQFHV ZLWKRXW UHIXHOLQJ WKDQ URWDU\ZLQJ DLUFUDIW
+RZHYHUXVHRIIL[HGZLQJDLUFUDIWWRWUDQVSRUWVXSSOLHVUHTXLUHVPRUHODQGLQJVWULSVWKDQPD\EHSUHVHQW

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

&RQVWUXFWLRQDQGPDLQWHQDQFHRIDLUILHOGVLQMXQJOHVLVDGLIILFXOWWDVNEXWRSHQVDYDQQDPD\EHODUJHHQRXJK
DQGILUPHQRXJKWRXVHDVDQDLUVWULS
 $LUGURSRIVXSSOLHVLVDQDOWHUQDWLYHWRDLUODQGLQJ$LUGURSE\SDUDFKXWHLVDUDSLGPHDQVRIGHOLYHU\
DQG PDNHV GHOLYHULHV WR LVRODWHG XQLWV SRVVLEOH ZLWKRXW IXUWKHU WUDQVORDGLQJ 'LVDGYDQWDJHV RI DLUGURS
LQFOXGHWKHGLVSHUVLRQRIVXSSOLHVDQGWKHSRVVLELOLW\RIORVWFDUJRLQWKHMXQJOHFDQRS\YXOQHUDELOLW\WRORFDO
HQHP\DLUGHIHQVHDQGDUHTXLUHPHQWIRUORFDODLUVXSHULRULW\
 $YDULDWLRQRIDLUGURSE\SDUDFKXWHLVWKHORZDOWLWXGHSDUDFKXWHH[WUDFWLRQV\VWHP7KHSDUDFKXWHLV
XVHGWRSXOOWKHORDGIURPWKHUHDUUDPSRIDQDLUFUDIWIO\LQJDWDUHGXFHGVSHHGRQO\WRIHHWWRPHWHUV
DERYH WKH JURXQG /RZ DOWLWXGH SDUDFKXWH H[WUDFWLRQ QHJDWHV WKH LVVXHV RI GLVSHUVLRQ DQG WKH FKDOOHQJHV
FDXVHGE\WKLFNFDQRSLHVDQGFDSLWDOL]HVRQWKHVPDOOHUGURS]RQHVPRUHFRPPRQLQMXQJOHDUHDV+RZHYHU
IUDJLOHHTXLSPHQWPLJKWQRWVXUYLYHWKLVW\SHRIGURS,QDUHDVZKHUHDLUFUDIWFDQPDNHDORZOHYHODSSURDFK
VXFKDVVDYDQQDVORZDOWLWXGHSDUDFKXWHH[WUDFWLRQPD\EHDYDOXDEOHUHVXSSO\WHFKQLTXH2QO\&DLUFUDIW
SHUIRUPWKLVDLUGURS
 7KHFRQWDLQHUSDUDFKXWHGHOLYHU\V\VWHPSURYLGHVVLQJOHSDVVGHOLYHU\RIWRLQGLYLGXDOO\ULJJHG
$FRQWDLQHUVLQWRDVPDOOGURS]RQHDWDOWLWXGHVRIWRIHHWWRPHWHUV:KHQXVLQJWKLV
V\VWHPWKHVHOHFWLRQRIDGURS]RQHLVFULWLFDOWRDFFXUDWHGHOLYHU\7KHMXQJOHWHUUDLQDQGWKHVPDOOGURS
]RQHVPDNHWKHDFFXUDWHGHOLYHU\RIEXQGOHVFKDOOHQJLQJ7KHGURS]RQHPXVWPHDVXUHDWOHDVWIHHWE\
IHHWPHWHUVE\PHWHUV$FRQWDLQHUSDUDFKXWHGHOLYHU\FDQXVHDVWUDLJKWVWUHWFKRIURDGRUD
ODUJHILHOGYLVLEOHIURPWKHDLU,IQRRSHQDUHDH[LVWVWURRSVPD\XVHDULYHURUODNH,IGURSSHGLQWKHZDWHU
EXQGOHVPXVWEHULJJHGZLWKDGHTXDWHEXR\DQF\IRUH[DPSOH HPSW\ZDWHUFDQV7RSUHYHQWORVVWURRSV
PXVWUHFRYHUWKHEXQGOHVLPPHGLDWHO\XSRQFRPSOHWLRQRIWKHGURS
 5RWDU\DQGWLOWZLQJDLUFUDIWFDQDOVRGHOLYHUVPDOOORDGVRIVXSSOLHVDQGHTXLSPHQWXVLQJHLWKHUD
ORZRSHQLQJSDUDFKXWHRUDIUHHGURS,QWKLVPHWKRGSLORWVVLPSO\GURSWKHORDGZLWKRUZLWKRXWDVPDOO
SDUDFKXWHIURPDORZDQGVORZIO\LQJKHOLFRSWHURUWLOWZLQJDLUFUDIW+HOLFRSWHUVZRUNYHU\ZHOOHPSOR\LQJ
WKLVWHFKQLTXHEHFDXVHWKH\FDQKRYHUORZRYHUDXQLWDQGGURSWKHVXSSOLHVH[DFWO\ZKHUHGHVLUHG
 6SHFLDOL]HGXQPDQQHGDHULDOYHKLFOHVERWKURWDU\DQGIL[HGZLQJFDQEHXVHGWRUHVXSSO\UHPRWH
ORFDWLRQVZLWKOLPLWHGTXDQWLWLHVRIFULWLFDOVXSSOLHV7KHVHVSHFLDOL]HGXQPDQQHGDHULDOYHKLFOHVFDQEHXVHG
LQZHDWKHUFRQGLWLRQVDQGWKUHDWFRQGLWLRQVWKDWSUHYHQWPDQQHGDLUFUDIWRSHUDWLRQV

6867$,10(17/2*,67,&63/$11,1*
 7KHFRPPDQGHU¶VLQWHQWDQGDQDO\VLVRIWKHPLVVLRQYDULDEOHVLVXVHGWRGHWHUPLQHWKHVXVWDLQPHQW
SODQ+RZHYHUVXVWDLQPHQWSODQQHUVPXVWQRWEHFRPHORFNHGLQWRULJLGVXVWDLQPHQWSODQVDVWKHVLWXDWLRQ
GLFWDWHVKRZWUDLQVDUHFRQILJXUHGHFKHORQHGDQGFRQWUROOHG&RPPDQGHUVDQGWKHLUVWDIIVPXVWXVHDORJLFDO
DQGHIILFLHQWPHDQVWRHYDOXDWHFKDQJLQJFRQGLWLRQVDQGUHDFKGHFLVLRQV7KH 0'030&33GHVFULEHGLQ
)0  DQG 0&:3  0&:3  SURYLGHV WKH IUDPHZRUN ZLWKLQ ZKLFK WKH FRPPDQGHU DQG VWDII
LQWHUDFWWRGHYHORSWKHVXVWDLQPHQWSODQ
 6XVWDLQPHQW FRPPDQGHUV DQG SODQQHUV PXVW WKRURXJKO\ XQGHUVWDQG WKH PLVVLRQ DQG WKH
FRPPDQGHU¶VLQWHQW7KH\PXVWNQRZ²
z :KDWHDFKRIWKHVXSSRUWHGHOHPHQWVZLOOEHGRLQJ
ƒ :KHQWKH\ZLOOGRLW
ƒ +RZWKH\ZLOOGRLW
ƒ :KHUHWKH\ZLOOGRLW
z :KDWWKHSULRULW\RIVXSSRUWLV
z 'HQVLW\RISHUVRQQHODQGHTXLSPHQWEHLQJVXSSRUWHG

 7KH FRPPDQGHU DQG VWDII GHYHORS D FRQFHSW RI VXSSRUWFRQFHSW RI ORJLVWLF VXSSRUW WKDW DSSOLHV
UHVRXUFHV DJDLQVW UHTXLUHPHQWV LQ D PDQQHU WKDW UHVXOWV LQ WKH PRVW UHVSRQVLYH VXSSRUW SRVVLEOH 7KH\
HVWDEOLVK DQG PDLQWDLQ FRPPXQLFDWLRQV OLQNV DQG RUGHUV WKDW FOHDUO\ GHVFULEH WDVNV WR EH SHUIRUPHG
&RQWLQXRXVIROORZXSHQVXUHVWDVNVDUHSHUIRUPHGDVSODQQHG
 6XVWDLQPHQWVXSSRUWPXVWEHUHVSRQVLYHDQGLVSODQQHGDURXQGWKHFRQFHSWRISURYLGLQJVXSSRUWDV
IDUIRUZDUGDVSRVVLEOH7KLVLQYROYHVEULQJLQJDPPXQLWLRQIXHOVSDUWVHQGLWHPVPDLQWHQDQFHSHUVRQQHO

6HSWHPEHU $730&73& 

&KDSWHU

DQGRFFDVLRQDOO\UHSODFHPHQWFUHZVRULQGLYLGXDOVWRWKH IRUZDUGHOHPHQWVVXFKDVEDWWDOLRQILHOGWUDLQV
FRPEDWWUDLQVDQGHTXLSPHQWGRZQVLWHV
 $NH\WRVXFFHVVIXOO\H[WHQGLQJRSHUDWLRQDOUHDFKLVWKHDELOLW\WRDQWLFLSDWHWKHUHTXLUHPHQWWRSXVK
VXVWDLQPHQW VXSSRUW IRUZDUG VSHFLILFDOO\ DPPXQLWLRQ IXHO UHSODFHPHQWV DQG ZDWHU 6XVWDLQPHQW
FRPPDQGHUV PXVW DFW UDWKHU WKDQ UHDFW WR VXSSRUW UHTXLUHPHQWV 7KH H[LVWHQFH RI KDELWXDO VXSSRUW
UHODWLRQVKLSVIDFLOLWDWHVDFFXUDWHDQWLFLSDWLRQRIVXSSRUWUHTXLUHPHQWV

)25(&$67,1*
 'XHWRWKHH[WHQGHG/2&VDQGWKHGLIILFXOW\RIWUDQVSRUWDWLRQDFFXUDWHFRQVXPSWLRQHVWLPDWHVDUH
FULWLFDO GXULQJ MXQJOH RSHUDWLRQV &RPPDQGHUV QHHG WR DGMXVW VWDQGDUG &ODVV , ,,, DQG 9 FRQVXPSWLRQ
HVWLPDWHVWRDFFRXQWIRUWKHUHVWULFWLYHWHUUDLQDQGHQYLURQPHQWDOIDFWRUV7KHDEVHQFHRIURDGVLQIRUZDUG
DUHDV QDYLJDWLRQ SUREOHPV ZHDWKHU LPSDFWV DQG ZLGH GLVSHUVLRQ DOO UHTXLUH FDUHIXO FRQVLGHUDWLRQ ZKHQ
IRUHFDVWLQJUHVXSSO\UHTXLUHPHQWVDQGRSHUDWLRQV

+($/7+6(59,&(6
 0HGLFDO VXSSRUW GXULQJ MXQJOH RSHUDWLRQV IROORZV WKH EDVLF SULQFLSOHV RI PLOLWDU\ PHGLFLQH EXW
PHGLFDOWUHDWPHQWDQGHYDFXDWLRQLVRIWHQFRPSOLFDWHGE\H[WHQGHG/2&VDQGLQDFFHVVLELOLW\GXHWRWHUUDLQ
DQG YHJHWDWLRQ 7KH LQFLGHQFH RI LOOQHVV IURP KHDW H[SRVXUH DQG YHFWRUERUQH GLVHDVH LV KLJKHU WKDQ LQ
WHPSHUDWH FOLPDWHV DQG UHTXLUHV LQFUHDVHG SUHYHQWLYH PHGLFLQH HPSKDVLV RQ KHDOWK DQG VDQLWDWLRQ 7KH
PRELOLW\RIPDQHXYHUXQLWVLVLPSDFWHGLIDQ\SDUWRIWKHVHXQLWVLQFOXGLQJWKHFRPEDWWUDLQVLVUHVWULFWHGE\
KDYLQJWRWUHDWQXPHURXVDQGUHSHWLWLYHHQYLURQPHQWDOLQMXULHV
 $OWKRXJKGLIILFXOWWLPHO\HYDFXDWLRQRIVLFNDQGZRXQGHG6ROGLHUV0DULQHVLVFULWLFDOGXULQJMXQJOH
RSHUDWLRQV DV WKH SUHYDOHQFH RI WURSLFDO GLVHDVHV LQFUHDVHV WKH ULVN RI LQIHFWLRQ 8QLWV XVH DOO DYDLODEOH
PHWKRGVWRDXJPHQWRUJDQLFPHGLFDOHYDFXDWLRQDQGDLGLQWKHVSHHG\PRYHPHQWRIFDVXDOWLHVWRHQKDQFHG
UROHVRIPHGLFDOFDUH7KHVHPD\LQFOXGHWUDFNHGYHKLFOHVSDFNDQLPDOVZDWHUFUDIWURWDU\ZLQJDLUFUDIWDQG
OLWWHUEHDUHUV
 7KHGLIILFXOWLHVRIRYHUODQGPHGLFDOHYDFXDWLRQLQMXQJOHRSHUDWLRQVHPSKDVL]HWKHDGYDQWDJHVRIDLU
HYDFXDWLRQ :KHQ ZHDWKHU DLUFUDIW DYDLODELOLW\ DQG IULHQGO\ DLU VXSHULRULW\ SHUPLW WKHLU XVH URWDU\ZLQJ
DLUFUDIWSURYLGHIDVWFRPIRUWDEOHDQGHIILFLHQWWUDQVSRUWDWLRQIRUFDVXDOWLHV'HFUHDVLQJWKHWLPHLWWDNHVWR
HYDFXDWHFDVXDOWLHVWRPRUHDGYDQFHGPHGLFDOFDUHGUDVWLFDOO\LQFUHDVHVVXUYLYDOUDWHVDQGFDQLPSURYHXQLW
PRUDOH$URWDU\ZLQJDLUFUDIWHTXLSSHGZLWKDFDEOHKRLVWDQGMXQJOHSHQHWUDWRUFDQHYDFXDWHFDVXDOWLHVIURP
WKLFNMXQJOHYHJHWDWLRQZKHUHQRODQGLQJ]RQHVH[LVW&RPEDWORVVHVDWWULEXWDEOHWRVORZHYDFXDWLRQWLPHFDQ
DOVR EH UHGXFHG E\ KDYLQJ DGHTXDWH PHGLFVFRUSVPHQ DQG WDFWLFDO FRPEDW FDVXDOW\ FDUH FHUWLILHG
6ROGLHUV0DULQHVQHDUWKHSRLQWRILQMXU\
 ,QUHPRWHMXQJOHVZLWKWKLFNIROLDJHDQGGHQVHFDQRSLHVJURXQGWUDQVSRUWDWLRQE\OLWWHUPD\EHWKH
RQO\PHDQVRIFDVXDOW\HYDFXDWLRQ7KLVVORZDQGH[KDXVWLQJWDVNUHTXLUHVZHOOFRQGLWLRQHGWURRSVWRFDUU\
WKH OLWWHUV 7KHUH DUH VHYHUDO W\SHV RI OLWWHUV ,Q YHU\ UXJJHG WHUUDLQ WKH PRXQWDLQW\SH PHWDO EDVNHW OLWWHU
RIIHUVWKHPRVWVHFXULW\WRWKHSDWLHQW+RZHYHULWLVFXPEHUVRPHDQGGLIILFXOWWRFDUU\GXULQJGLVPRXQWHG
RSHUDWLRQV7KHVWDQGDUGIROGLQJOLWWHU6.('&2RUILHOGH[SHGLHQWYDULDWLRQVDUHOHVVEXON\DQGHIIHFWLYHLI
WURRSVPRYHSDWLHQWVZLWKJUHDWFDUH

02578$5<$))$,56
 ([WHQGHG /2&V DQG UHVWULFWLYH WHUUDLQ PDNH HYDFXDWLQJ GHFHDVHG 6ROGLHUV0DULQHV GLIILFXOW
&RPPDQGHUV GHYHORS PRUWXDU\ DIIDLUV SODQV EHIRUH LQLWLDWLQJ MXQJOH RSHUDWLRQV &RPPDQGHUV DQG VWDII
GHYHORSLQJPRUWXDU\DIIDLUVSODQVIRUMXQJOHHQYLURQPHQWVFRQVLGHUWKDWWKHKRWDQGKXPLGFOLPDWHLQFUHDVHV
GHFRPSRVLWLRQ UDWHV DQG SRVHV D GLUHFW FKDOOHQJH WR SUHVHUYDWLRQ HIIRUWV 7KH UHPDLQV RI GHFHDVHG DUH
WUDQVSRUWHG LQ SDOOHWL]HG WUDQVIHU FDVHV ZKHQ WKH WDFWLFDO DQG ORJLVWLFDO VLWXDWLRQ SHUPLWV $GGLWLRQDO
UHIULJHUDWLRQHTXLSPHQWRUIDFLOLWLHVPD\EHUHTXLUHGWRSURSHUO\VWRUHWKHGHFHDVHG)RUPRUHLQIRUPDWLRQ
RQPRUWXDU\DIIDLUVUHIHUWR$73
 :KHQWKHVLWXDWLRQSURKLELWVLPPHGLDWHHYDFXDWLRQWURRSVPD\KDYHWRLQWHUUHPDLQVWHPSRUDULO\
ZLWKLQ WKH WKHDWHU ,QWHUPHQWV PD\ RQO\ EH FRQGXFWHG DV D ODVW UHVRUW DQG DIWHU EHLQJ DSSURYHG E\ WKH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

JHRJUDSKLF FRPEDWDQW FRPPDQGHU &DUHIXO FRQVLGHUDWLRQ PXVW EH JLYHQ WR VHOHFWLQJ DSSURSULDWH VLWHV IRU
WHPSRUDU\LQWHUPHQWDVFKDQJLQJZHDWKHUDQGSUHFLSLWDWLRQFDQUDSLGO\DIIHFWEXULDOVLWHV
 +RVWQDWLRQ+1VXSSRUWFDQEHXVHGWRGLJDQGILOOWHPSRUDU\LQWHUPHQWVLWHVKRZHYHU+1VXSSRUW
ODERUHUVZLOOQRWKDQGOHRUSURFHVVWKHUHPDLQVRUSHUVRQDOHIIHFWVRI86SHUVRQQHO3HUVRQDOHIIHFWVZLOOEH
LQWHUUHGZLWKUHPDLQVWRKHOSLQWKHLGHQWLILFDWLRQRIUHPDLQVZKHQWKH\DUHGLVLQWHUUHG7KHPRUWXDU\DIIDLUV
FRPSDQ\FRPPDQGHUKDVUHVSRQVLELOLW\IRUWKHOD\RXWVXUYH\DQGUHFRUGLQJRIWKHLQWHUPHQWVLWH

&$3785('0$7(5,(/
 8QLWVRSHUDWLQJLQWKHMXQJOHPD\XVHFDSWXUHGVXSSOLHVWRUHGXFHWKHLUUHOLDQFHRQH[WHQGHG/2&V
DQG OLPLWHG WUDQVSRUWDWLRQ DVVHWV $UP\0DULQH &RUSV IRUFHV PD\ XVH FDSWXUHG &ODVV ,,, DIWHU WHVWLQJ WR
FRQILUPWKH\KDYHQRWEHHQSROOXWHGRUVDERWDJHG86IRUFHVFDQXVHFDSWXUHG&ODVV,DQG&ODVV9,,,VXSSOLHV
WR IHHG RU WUHDW HQHP\ SULVRQHUV RI ZDU EXW 86 IRUFHV GR QRW FRQVXPH RU XVH WKHVH LWHPV 'HVSLWH WKH
SRWHQWLDOIRUXVLQJFDSWXUHGVXSSOLHVWRVXSSRUWHQHP\SULVRQHURI ZDURSHUDWLRQVFRPPDQGHUVDQGVWDII
PXVW VWLOO SODQ WR SURYLGH KHDOWK VHUYLFHV WUDQVSRUWDWLRQ VKHOWHU DQG &ODVV , LQ WKH DEVHQFH RI FDSWXUHG
PDWHULHO

(19,5210(17$/&216,'(5$7,216%<&/$662)6833/<
 &RQGLWLRQVLQWKHMXQJOHLPSDFWWKHXVHVWRUDJHDQGFRQVXPSWLRQRIYDULRXVFODVVHVRIVXSSO\DQG
UHTXLUHDGMXVWPHQWVWRSODQQLQJDQGIRUHFDVWLQJWRVXVWDLQRSHUDWLRQV

&ODVV,²6XEVLVWHQFH
 $IRUFH¶VDELOLW\WRVWRUHDQGWUDQVSRUWIRRGDQGZDWHULVNH\WRFRQGXFWLQJRSHUDWLRQVLQWKHMXQJOH
7KHRUJDQLFZDWHUWUDQVSRUWDWLRQDQGVWRUDJHFDSDFLW\RIDXQLWXVXDOO\GRHVQRWPHHWLWVQHHGVGXULQJMXQJOH
RSHUDWLRQV3RVVLEOHVROXWLRQVLQFOXGHFRQYHUWLQJIXHOWDQNHUVWR ZDWHUWDQNHUV XVLQJEOLYHWVDQG PDNLQJ
ORFDOSXUFKDVHVRIFLYLOLDQZDWHUKROGLQJWDQNVWKURXJK +1 VXSSRUW$TXDOLW\ZDWHUILOWUDWLRQV\VWHPFDQ
DOORZ SDWUROV WR K\GUDWH ZLWKRXW WKH H[FHVV EXUGHQ RI FDUU\LQJ WRR PXFK ZDWHU &RPPDQGHUV HVWDEOLVK
SULRULWLHVIRUZDWHUXVHWKURXJKRUGHUVRUXQLW623V6HHSDUDJUDSKVWKURXJKIRUPRUHLQIRUPDWLRQ
RQZDWHUVWRUDJHWHFKQLTXHVZDWHUVXSSO\SODQQLQJDQGZDWHUUHTXLUHPHQWVGXULQJMXQJOHRSHUDWLRQV)RU
DGGLWLRQDO GRFWULQH RQ SODQQLQJ DQG H[HFXWLQJ ZDWHU VXSSRUW RSHUDWLRQV VHH $73 0&53 '
>0&534@DQG0&53%>0&:3@

&ODVV,,,±3HWUROHXP2LOVDQG/XEULFDQWV
 &ODVV ,,, FRQVLGHUDWLRQV LQFOXGH EXON DQG SDFNDJHG IXHO DQG OXEULFDQWV ,QFUHDVHG KXPLGLW\ DQG
SUHFLSLWDWLRQ LQFUHDVH WKH GHPDQG IRU RLOV DQG OXEULFDQWV XVHG GXULQJ SUHYHQWLYH PDLQWHQDQFH +RZHYHU
EHFDXVH RI WKH GLVSHUVHG QDWXUH RI RSHUDWLRQV LQ WKH MXQJOH WURRSV SDFNDJH RLOV DQG OXEULFDQWV LQ VPDOO
FRQWDLQHUVWRHQDEOHWUDQVSRUWDQGDFFHVVLELOLW\E\VPDOOXQLWVDFURVVWKHWKHDWHU3DFNDJHGOXEULFDQWVDUHOHVV
SURQHWRFRQWDPLQDWLRQE\IUHTXHQWPRYHPHQWDQGUHSHWLWLYHXVH
 &RPPDQGHUV PDNH DGGLWLRQDO FRQVLGHUDWLRQV IRU VWRULQJ DQG WUDQVSRUWLQJ IXHO GXULQJ MXQJOH
RSHUDWLRQV5RDGVXUIDFHFRQGLWLRQVLQWKHMXQJOHPD\UHGXFHRUGHJUDGHDORDGHGIXHOWDQNHU¶VFURVVFRXQWU\
FDSDELOLW\DQGLQIUDVWUXFWXUHOLPLWDWLRQVPD\UHTXLUHWDQNHUVWRWUDQVSRUWOHVVWKDQWKHLUPD[LPXPFDSDFLW\
8QGHUWKHVHFRQGLWLRQVXQLWVPD\KDYHWRXVHIXHOGHSRWVDQGUHO\RQIXHOFDQVEODGGHUVRUDX[LOLDU\WDQNV
WRWUDQVSRUWDQGVWRUHIXHO7KHXVHRIPDQ\VPDOOIXHOGHSRWVLVFRQGXFLYHWRWKHGLVSHUVHGQDWXUHRIMXQJOH
RSHUDWLRQV+RZHYHUXQLWVPXVWLPSOHPHQWVDIHJXDUGVWRSUHYHQWHQHP\IRUFHVIURPFDSWXULQJRUVDERWDJLQJ
IULHQGO\IXHOVXSSOLHV7RGHWHUPLQHIXHOHVWLPDWHVXQLWVGLYLGHWKHUHTXLUHGGLVWDQFHWRWUDYHOLQPLOHVE\
WKHYHKLFOH¶VPLOHVSHUJDOORQ7KLVQXPEHULVWKHQPXOWLSOLHGE\WKHQXPEHURIYHKLFOHVSUHVHQWWRGHWHUPLQH
WKHWRWDOIXHOUHTXLUHPHQW0LOHVSHUJDOORQIRUVSHFLILFYHKLFOHPRGHOVFDQEHIRXQGLQWKHYHKLFOH¶VWHFKQLFDO
PDQXDO)RUPRUHLQIRUPDWLRQRQSHWUROHXPVXSSO\VHH$73DQG0&53%>0&:3@
 +LJKWHPSHUDWXUHVLQFUHDVHWKHGHPDQGVRQYHKLFOHFRROLQJV\VWHPVDQGLQWXUQFDXVHDQLQFUHDVH
LQWKHFRQVXPSWLRQRIFRRODQWV6XVWDLQPHQWSODQQHUVLQFUHDVHWKHYROXPHRIFRRODQWPDLQWDLQHGRQKDQGDQG
GLVWULEXWHVPDOODPRXQWVRIFRRODQWWRYHKLFOHFUHZVIRUFRQWLQJHQFLHV2YHUKHDWLQJPD\FDXVHHQJLQHVHDOV
WREUHDNGRZQDQGUHVXOWLQRLOOHDNV6XVWDLQPHQWSODQQHUVFRQVLGHULQFUHDVLQJWKHDPRXQWRIRLOGLVWULEXWHG

6HSWHPEHU $730&73& 

&KDSWHU

WR YHKLFOH RSHUDWRUV GXULQJ MXQJOH RSHUDWLRQV 5HSHWLWLYH RYHUKHDWLQJ FDXVHV H[FHVVLYH ZHDU WKDW FDQ
XOWLPDWHO\OHDGWRHQJLQHIDLOXUH

&ODVV,9± &RQVWUXFWLRQ0DWHULDOV
 7KHUHTXLUHPHQWIRU&ODVV,9VWRUHVFDQEHVLJQLILFDQWO\ORZHULQWKHMXQJOHWKDQLQRWKHUWKHDWHUV
GXHWRWKHODUJHDPRXQWVRIORFDOO\DYDLODEOHUHVRXUFHV0D[LPXPXVHPXVWEHPDGHRIORFDOPDWHULDOVLQ
RUGHUWRUHGXFHGHPDQGVRQWUDQVSRUWDWLRQDVVHWV

&ODVV9$PPXQLWLRQ
 &ODVV9FRQVLVWVRIDPPXQLWLRQRIDOOW\SHVLQFOXGLQJERPEVH[SORVLYHVPLQHVIXVHVGHWRQDWRUV
S\URWHFKQLFVPLVVLOHVDQGURFNHWV%DWWDOLRQWUDLQVPDLQWDLQDRQHGD\VXSSO\RIDPPXQLWLRQDQGPLVVLOHV
IRUDOOZHDSRQVV\VWHPVLQWKHXQLW:KHQWUDLQVDUHHFKHORQHGFRPEDWDQGILHOGWUDLQVGLYLGHDPPXQLWLRQ
8QLWVVKRXOGNHHSDPPXQLWLRQDVSDFNDJHGXQWLOLWFDQEHXSORDGHGRQFRPEDWYHKLFOHVRULVVXHGWRLQGLYLGXDO
6ROGLHUV7KLVZLOOSURWHFWWKHDPPXQLWLRQIURPGDPDJHFDXVHGE\KLJKKHDWKXPLGLW\DQGSUHFLSLWDWLRQ

&ODVV9,,,±0HGLFDO0DWHULDO
 &ODVV 9,,, FRQVLVWV RI PHGLFDO LWHPV PHGLFDO UHSDLU SDUWV EORRG DQG IOXLGV 'XULQJ MXQJOH
RSHUDWLRQVXQLWVUHTXLUHPHGLFLQHVWRERWKSUHYHQWDQGWUHDWGLVHDVHVHQGHPLFWRWURSLFDOHQYLURQPHQWVVXFK
DVPDODULDDQGGLVHDVHVFDXVHGE\SRRUVDQLWDWLRQVXFKDVG\VHQWHU\

&ODVV,;± 5HSDLU3DUWVDQG&RPSRQHQWV
 7KH KLJK KHDW KXPLGLW\ DQG SUHFLSLWDWLRQ RI WKH MXQJOH LQFUHDVH GHPDQGV IRU UHSDLU SDUWV
0DLQWHQDQFHVXSHUYLVRUVVKRXOGLQFUHDVHRQKDQGTXDQWLWLHVRIIUHTXHQWO\XVHGVKRSVWRFNRUEHQFKVWRFN
OLQHV7URRSVPDLQWDLQVPDOOLWHPVZLWKKLJKXVDJHUDWHVDVIDUIRUZDUGDVSRVVLEOHVRPHWURRSVNHHSWKRVH
LWHPVRQLQGLYLGXDOYHKLFOHV

3527(&7,21)25&(3527(&7,21:$5),*+7,1*)81&7,21
 ProtectionLVWKHSUHVHUYDWLRQRIWKHHIIHFWLYHQHVVDQGVXUYLYDELOLW\RIPLVVLRQUHODWHGPLOLWDU\DQG
QRQPLOLWDU\SHUVRQQHOHTXLSPHQWIDFLOLWLHVLQIRUPDWLRQDQGLQIUDVWUXFWXUHGHSOR\HGRUORFDWHGZLWKLQRU
RXWVLGHWKHERXQGDULHVRIDJLYHQRSHUDWLRQDODUHD-3Force protectionLVSUHYHQWLYHPHDVXUHVWDNHQWR
PLWLJDWHKRVWLOHDFWLRQVDJDLQVW'HSDUWPHQWRI'HIHQVHSHUVRQQHOWRLQFOXGHIDPLO\PHPEHUVUHVRXUFHV
IDFLOLWLHV DQG FULWLFDO LQIRUPDWLRQ -3  7KH 0DULQH &RUSV DPSOLILFDWLRQ LV DFWLRQV RU HIIHFWV XVHG WR
VDIHJXDUG RZQ FHQWHUV RI JUDYLW\ ZKLOH SURWHFWLQJ FRQFHDOLQJ UHGXFLQJ RU HOLPLQDWLQJ IULHQGO\ FULWLFDO
YXOQHUDELOLWLHV )RUFH SURWHFWLRQ LV RQH RI WKH ZDUILJKWLQJ IXQFWLRQV 0&53   7KH protection
warfighting functionLVWKHUHODWHGWDVNVDQGV\VWHPVWKDWSUHVHUYHWKH IRUFHVRWKHFRPPDQGHUFDQDSSO\
PD[LPXP FRPEDW SRZHU WR DFFRPSOLVK WKH PLVVLRQ $'3  'XULQJ MXQJOH RSHUDWLRQV WKH EXON RI
SURWHFWLRQDFWLYLWLHVFRQVLVWRIVXUYLYDELOLW\DLUDQGPLVVLOHGHIHQVHDQG&%51RSHUDWLRQV
 3URWHFWLRQIRUFHSURWHFWLRQHPSKDVL]HVWKHQHHGIRU6ROGLHUV0DULQHVOHDGHUVDQGRUJDQL]DWLRQVWR
LGHQWLI\SUHYHQWDQGPLWLJDWHWKUHDWVDQGKD]DUGV7KHHQYLURQPHQWDOKD]DUGVDQGLPSDFWVRQSHUVRQQHODQG
HTXLSPHQWLQWKHMXQJOHLQFUHDVHWKHFKDOOHQJHVDVVRFLDWHGZLWKJHQHUDWLQJDQGPDLQWDLQLQJFRPEDWSRZHU
7KHOHWKDOLW\RIMXQJOHRSHUDWLRQVUHTXLUHVV\QFKURQL]DWLRQLQWHJUDWLRQDQGRUJDQL]DWLRQRIFDSDELOLWLHVDQG
UHVRXUFHVWRSUHVHUYHFRPEDWSRZHUWKURXJKFRQWLQXRXVSURWHFWLRQIRUFHSURWHFWLRQ
 $OWKRXJKWUDGLWLRQDOO\XVHGWRDOORFDWHDLUDQGPLVVLOHGHIHQVHUHVRXUFHVWRSURWHFWFULWLFDODVVHWV
FRPPDQGHUVFDQH[SDQGWKHFRQFHSWRIWKH&$/DQG'$/WRDFFRXQWIRUQRQDLUGHIHQVHUHODWHGWKUHDWVDQG
DVVHWV WKDW UHTXLUH SURWHFWLRQ $VVHWV GHHPHG QRW YXOQHUDEOH WR DLU DQG PLVVLOH DWWDFN PD\ VWLOO UHTXLUH
SURWHFWLRQIURPVDERWDJHRUJURXQGDWWDFNDQGFRPPDQGHUVFDQH[SDQGWKH&$/WRDFFRXQWIRUWKHVHDVVHWV
7KH\FDQWKHQDSSO\RWKHUVHFXULW\IRUFHVVXFKDVPLOLWDU\SROLFHWRSURWHFWWKHVHFULWLFDODVVHWV

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

6859,9$%,/,7<
 Survivability LV DOO DVSHFWV RI SURWHFWLQJ SHUVRQQHO ZHDSRQV DQG VXSSOLHV ZKLOH VLPXOWDQHRXVO\
GHFHLYLQJWKHHQHP\-37KH0DULQH&RUSVDPSOLILFDWLRQLVWKHGHJUHHWRZKLFKDV\VWHPLVDEOHWR
DYRLGRUZLWKVWDQGDPDQPDGHKRVWLOHHQYLURQPHQWZLWKRXWVXIIHULQJDQDERUWLYHLPSDLUPHQWRILWVDELOLW\
WR DFFRPSOLVK LWV GHVLJQDWHG PLVVLRQ 0&53  7KH $UP\ GHILQHV survivability DV D TXDOLW\ RU
FDSDELOLW\ RI PLOLWDU\ IRUFHV ZKLFK SHUPLWV WKHP WR DYRLG RU ZLWKVWDQG KRVWLOH DFWLRQV RU HQYLURQPHQWDO
FRQGLWLRQVZKLOHUHWDLQLQJWKHDELOLW\WRIXOILOOWKHLUSULPDU\PLVVLRQ$730&73&
 6XUYLYDELOLW\ RSHUDWLRQV HQKDQFH WKH DELOLW\ WR DYRLG RU ZLWKVWDQG KRVWLOH DFWLRQV E\ DOWHULQJ WKH
SK\VLFDO HQYLURQPHQW $YRLGDQFH PHDVXUHV VHHN WR SUHYHQW DQ HQHP\ DWWDFN PHDVXUHV LPSOHPHQWHG WR
ZLWKVWDQGDQDWWDFNVHHNWRSUHVHUYHUHDGLQHVVDQGPLWLJDWHWKHHIIHFWVRIDQHQHP\DWWDFN8QLWVFRQGXFWULVN
PDQDJHPHQW WR HQKDQFH VXUYLYDELOLW\ 5LVN PDQDJHPHQW UHTXLUHV LGHQWLI\LQJ DQG DVVHVVLQJ WKH WKUHDW
FULWLFDOLW\ YXOQHUDELOLW\ DQG XOWLPDWHO\ ULVN $V D FRQWLQXRXV SURFHVV LW UHVXOWV LQ WKH LPSOHPHQWDWLRQ RI
FRQWUROPHDVXUHVWRDFWLYHO\FRPEDWWKHWKUHDWDQGSURWHFW86IRUFHVZKLOHHQDEOLQJPLVVLRQVXFFHVV6HH
$73IRUPRUHLQIRUPDWLRQRQULVNPDQDJHPHQW
 7KHUHDUHWKUHHJHQHUDOFDWHJRULHVRIWKUHDWVWRVXUYLYDELOLW\KRVWLOHDFWLRQVQRQKRVWLOHDFWLYLWLHV
DQGHQYLURQPHQWDOFRQGLWLRQV$OWKRXJKDOOWKUHHFDWHJRULHVRIWKUHDWVFDQFDXVHGDPDJHGHVWUXFWLRQGHDWK
RULQMXU\WRSHUVRQQHODQGSK\VLFDODVVHWVVXUYLYDELOLW\IRFXVHVRQDYRLGLQJRUZLWKVWDQGLQJWKUHDWVSRVHGE\
WZRRIWKRVHFDWHJRULHVKRVWLOHDFWLRQVDQGHQYLURQPHQWDOFRQGLWLRQV

Note.+RVWLOHDFWLRQVDQGHQYLURQPHQWDOFRQGLWLRQVFDQVRPHWLPHVRYHUODSPDNLQJLWGLIILFXOWWR
GLVWLQJXLVKEHWZHHQWKHP+RVWLOHDFWLRQVFDQDIIHFWHQYLURQPHQWDOFRQGLWLRQVDQGWKHLUHIIHFWV
VRPHWLPHVOLQJHUIRUVLJQLILFDQWSHULRGVVXFKDVZKHQ&%51ZHDSRQVKDYHEHHQHPSOR\HG,Q
DGGLWLRQ WKUHDW IRUFHV DQG HOHPHQWV PD\ DV D KRVWLOH DFWLRQ FUHDWH KD]DUGRXV HQYLURQPHQWDO
FRQGLWLRQV )RU H[DPSOH WKH\ PD\ VHW IRUHVW ILUHV RU FUHDWH IORRGLQJ E\ GHVWUR\LQJ D GDP
5HJDUGOHVV RI ZKHWKHU D SDUWLFXODU WKUHDW LV FDWHJRUL]HG DV D KRVWLOH DFWLRQ DQ HQYLURQPHQWDO
FRQGLWLRQRUERWKWKHFDSDELOLW\WRDYRLGRUZLWKVWDQGVXFKDWKUHDWLVFULWLFDOWRWKHVXUYLYDELOLW\
RIPLOLWDU\IRUFHV

 &RPPDQGHUV LQFUHDVH VXUYLYDELOLW\ E\ HQVXULQJ DOO 6ROGLHUV0DULQHV KDYH DQG SURSHUO\ XVH WKH
QHFHVVDU\ SURWHFWLYH HTXLSPHQW WR PLWLJDWH KD]DUGV RI WKH MXQJOH EDWWOHILHOG &RPPDQGHUV HQVXUH WKDW
6ROGLHUV0DULQHVKDYHVWDQGDUGSURWHFWLYHHTXLSPHQWVXFKDVKHOPHWVJORYHVERG\DUPRUH\HSURWHFWLRQ
DQGFKHPLFDOSURWHFWLYHRYHUJDUPHQWV&RPPDQGHUVHQVXUHDYDLODELOLW\RIRWKHUSURWHFWLYHHTXLSPHQWDQG
PDWHULDOVVXFKDV²
z .QHHDQGHOERZSURWHFWRUV
z %DUULHUPDWHULHOLQFOXGLQJSUHIRUPHGFRQFUHWHEDUULHUVZLUHDQGVDQGEDJV
z )LUHH[WLQJXLVKHUVDQGRWKHUILUHILJKWLQJHTXLSPHQW

6859,9$%,/,7<23(5$7,216
 6XUYLYDELOLW\RSHUDWLRQVVHHNWRHQKDQFHQDWXUDOO\RFFXUULQJTXDOLWLHVRUFDSDELOLWLHVWRLPSURYHD
SHUVRQ XQLW RU DVVHW¶V DELOLW\ WR DYRLG RU ZLWKVWDQG KRVWLOH DFWLRQV )RU H[DPSOH RQH ZD\ WR HQKDQFH
VXUYLYDELOLW\²ZKHQ H[LVWLQJ WHUUDLQ IHDWXUHV RIIHU LQVXIILFLHQW FRYHU DQG FRQFHDOPHQW²LV WR DOWHU WKH
SK\VLFDOHQYLURQPHQWWRSURYLGHRULPSURYHFRYHUDQGFRQFHDOPHQW6LPLODUO\QDWXUDORUDUWLILFLDOPDWHULDOV
PD\EHXVHGDVFDPRXIODJHWRFRQIXVHPLVOHDGRUHYDGHWKHHQHP\7RJHWKHUWKHVHDUHFDOOHGsurvivability
operations²WKRVHSURWHFWLRQDFWLYLWLHVWKDWDOWHUWKHSK\VLFDOHQYLURQPHQWE\SURYLGLQJRULPSURYLQJFRYHU
FDPRXIODJHDQGFRQFHDOPHQW$730&73&%\SURYLGLQJRULPSURYLQJFRYHUFRQFHDOPHQW
DQGFDPRXIODJHVXUYLYDELOLW\RSHUDWLRQVKHOSPLOLWDU\IRUFHVDYRLGRUZLWKVWDQGKRVWLOHDFWLRQV$OWKRXJK
VXFKDFWLYLWLHVRIWHQKDYHWKHDGGHGEHQHILWRISURYLGLQJVKHOWHUIURPWKHHOHPHQWVVXUYLYDELOLW\RSHUDWLRQV
JHQHUDOO\IRFXVRQSUHYHQWLQJRUPLWLJDWLQJHQHP\DFWV

6HSWHPEHU $730&73& 

&KDSWHU

(QJLQHHU5ROHLQ6XUYLYDELOLW\2SHUDWLRQV
 $OWKRXJK DOO XQLWV FRQGXFW VXUYLYDELOLW\ RSHUDWLRQV ZLWKLQ WKH OLPLWV RI WKHLU FDSDELOLWLHV WKH
$UP\0DULQH &RUSV KDV D EURDG UDQJH RI GLYHUVH HQJLQHHU FDSDELOLWLHV WKDW FDQ HQKDQFH VXUYLYDELOLW\
(QJLQHHULQJWDVNVLQVXSSRUWRIVXUYLYDELOLW\RSHUDWLRQVLQFOXGHWDVNVWREXLOGUHSDLURUPDLQWDLQILJKWLQJ
DQGSURWHFWLYHSRVLWLRQVKDUGHQFRQFHDORUFDPRXIODJHURDGVEULGJHVDLUILHOGVDQGRWKHUVWUXFWXUHVDQG
IDFLOLWLHVFRQVWUXFWSURWHFWLYHZRUNVIRUH[SORVLYHKD]DUGVDQGFOHDUURXWHVDQGDUHDVRIH[SORVLYHKD]DUGV
7KHVHWDVNVWHQGWREHHTXLSPHQWLQWHQVLYHDQGPD\KDYHWREHSULRULWL]HGE\FULWLFDOLW\RIWKHVLWHRUDVVHW
JLYHQSRWHQWLDOHTXLSPHQWFRQVWUDLQWV&RPPDQGHUVEDVHWKHSULRULW\RIHQJLQHHULQJVXSSRUWRQWKHPLVVLRQ
YDULDEOHVWKUHDWDQGFRPPDQGHU¶VLQWHQW

-XQJOH6XUYLYDELOLW\3RVLWLRQV
 6XUYLYDELOLW\ RSHUDWLRQV HQKDQFH WKH DELOLW\ WR DYRLG RU ZLWKVWDQG KRVWLOH DFWLRQV E\ DOWHULQJ WKH
SK\VLFDOHQYLURQPHQW7KH\DFFRPSOLVKWKLVE\SURYLGLQJRULPSURYLQJFRYHUFRQFHDOPHQWDQGFDPRXIODJH
LQIRXUDUHDV7KHILUVWWKUHHDUHDVDGGUHVVILJKWLQJSRVLWLRQVSURWHFWLYHSRVLWLRQVDQGKDUGHQHGIDFLOLWLHV
IRFXVLQJ RQ SURYLGLQJ FRYHU DOWKRXJK QRW H[FOXGLQJ FDPRXIODJH DQG FRQFHDOPHQW 7KH IRXUWK DUHD
DGGUHVVHV FDPRXIODJH DQG FRQFHDOPHQW DQG IRFXVHV RQ SURYLGLQJ SURWHFWLRQ IURP REVHUYDWLRQ DQG
VXUYHLOODQFH$OOIRXUDUHDVKDYHWKHDGGHGEHQHILWRISURYLGLQJVRPHGHJUHHRIVKHOWHUIURPWKHHOHPHQWV
7KH IRXU DUHDV RI VXUYLYDELOLW\ RSHUDWLRQV DUH RIWHQ DGGUHVVHG LQ FRPELQDWLRQ )LJKWLQJ SRVLWLRQV DQG
SURWHFWLYH SRVLWLRQV IRU H[DPSOH XVXDOO\ DOVR UHTXLUH FDPRXIODJH DQG FRQFHDOPHQW &DPRXIODJH DQG
FRQFHDOPHQWDFWLYLWLHVRIWHQDFFRPSDQ\DFWLYLWLHVWRKDUGHQIDFLOLWLHV
 %HFDXVH WKH HQHP\ FDQ HDVLO\ GHWHFW RYHUO\ FOHDUHG DUHDV WURRSV FOHDU DZD\ RQO\ QHFHVVDU\
YHJHWDWLRQWRUHWDLQDVPXFKQDWXUDOFRQFHDOPHQWDVSRVVLEOH,QSURSHUO\FRQVWUXFWHGSRVLWLRQVWKH6ROGLHU
0DULQHLVFRQFHDOHGIURPWKHHQHP\DQGSURWHFWHGE\FRYHUEXWVWLOOFDQGHWHFWDSSURDFKLQJHQHP\
 7KHFRPPDQGHU¶VUHVSRQVLELOLWLHVGXULQJFRQVWUXFWLRQRIVXUYLYDELOLW\SRVLWLRQV
z 3URWHFWWURRSV
z &RQWLQXRXVO\LPSURYHDQGPDLQWDLQXQLWVXUYLYDELOLW\
z 3URYLGHPDWHULDOV
z 3HULRGLFDOO\LQVSHFW
z 3ODQDQGVHOHFWILJKWLQJSRVLWLRQVLWHV
z *HWWHFKQLFDODGYLFHIURPHQJLQHHUVDVUHTXLUHG

 (QJLQHHUDFWLYLW\RIWHQSUHFHGHVRSHUDWLRQVZKLFKPDNHVLWLPSRUWDQWWKDWVXFKZRUNEHFRQFHDOHG
IURPHQHP\VXUYHLOODQFH)ROORZWKHVHJXLGHOLQHVWRFRQFHDOHQJLQHHUDFWLYLW\
z (PSOR\WKHPLQLPXPQXPEHURIHTXLSPHQWDQGSHUVRQQHO
z &RQFHDOGLVSHUVHDQGVWRUHFRQVWUXFWLRQHTXLSPHQWDZD\IURPWKHFRQVWUXFWLRQVLWHZKHQQRWLQ
XVH
z &RPSOHWHDOOSRVVLEOHSUHSDUDWLRQVZHOODZD\IURPWKHVLWH
z )ROORZWKHQDWXUDOOD\RIWKHODQGZKHQFRQVWUXFWLQJILJKWLQJSRVLWLRQV

 :KHQFRQVWUXFWLQJILJKWLQJSRVLWLRQVLQWKHMXQJOH²
z (QVXUHDGHTXDWHPDWHULDOLVDYDLODEOH
z 'LJGRZQDVPXFKDVSRVVLEOH
z 0DLQWDLQUHSDLUDQGLPSURYHSRVLWLRQVFRQWLQXRXVO\
z ,QVSHFWDQGWHVWSRVLWLRQVGDLO\DIWHUKHDY\UDLQDQGDIWHUUHFHLYLQJGLUHFWDQGLQGLUHFWILUH
z ,QWHUORFNVDQGEDJVIRUGRXEOHZDOOHGFRQVWUXFWLRQVDQGFRUQHUV
z &KHFNVWDELOL]DWLRQRIZDOOEDVHV
z )LOOVDQGEDJVDSSUR[LPDWHO\SHUFHQW
z &RQVWUXFWWRVWDQGDUGUHIHUWR7&DQG*7$IRUILJKWLQJSRVLWLRQFRQVWUXFWLRQ
VWDQGDUGV
z 8VHFRPPRQVHQVH

 :KHQFRQVWUXFWLQJILJKWLQJSRVLWLRQVLQWKHMXQJOHGRQRW²

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

z 8VHVDQGIRUVWUXFWXUDOVXSSRUW
z )RUJHWWRFDPRXIODJH
z 'ULYHYHKLFOHVZLWKLQIHHWPHWHUVRIDSRVLWLRQ
z 2YHUILOOVDQGEDJV
z %XLOGDERYHJURXQGXQOHVVDEVROXWHO\QHFHVVDU\
 ,QDFRPEDWVLWXDWLRQVRPHWLPHVWURRSVQHHGWRLPSURYLVHFRQVWUXFWLRQRIDVXUYLYDELOLW\SRVLWLRQ
E\XVLQJPDWHULDOVQRWQRUPDOO\DVVRFLDWHGZLWKWKHFRQVWUXFWLRQ6RPHH[DPSOHVRIILHOGH[SHGLHQWPDWHULHO
LQFOXGH²
z :DOOUHYHWPHQW
ƒ 6KHHWPHWDO
ƒ &RUUXJDWHGVKHHWPHWDO
ƒ 3ODVWLFVKHHWLQJ
ƒ 3O\ZRRG
ƒ /SDOOHWV
z :DOOFRQVWUXFWLRQEXLOGLQJXS
ƒ 6DQGJULGPDWHULDO
ƒ JDOORQGUXPVILOOHGZLWKVDQG
ƒ ([SHQGHGDUWLOOHU\VKHOOVILOOHGZLWKVDQG
ƒ 6KLSSLQJER[HVDQGSDFNLQJPDWHULDO
ƒ 3UHIDEULFDWHGFRQFUHWHSDQHOV
ƒ 3UHIDEULFDWHGFRQFUHWHWUDIILFEDUULHUV
z 2YHUKHDGFRYHUVWULQJHUV
ƒ 6LQJOHSLFNHWV³8´IDFLQJGRZQ
ƒ 'RXEOHSLFNHWV
ƒ 5DLOURDGUDLOV
ƒ 7EHDPV
ƒ 'LDPHWHUSLSHLQFKHVFHQWLPHWHUV RUODUJHU
ƒ 7LPEHUVLQFK[LQFKRULQFK[LQFKFHQWLPHWHU[FHQWLPHWHURUFHQWLPHWHU[
FHQWLPHWHURUODUJHU
ƒ 5HLQIRUFHGFRQFUHWHEHDPV
ƒ JDOORQGUXPVFXWLQKDOIORQJLWXGLQDOO\
ƒ /DUJHGLDPHWHUSLSHRUFXOYHUWFXWLQKDOI
ƒ 3UHFDVWFRQFUHWHSDQHOVWRLQFKHVWRFHQWLPHWHUV WKLFN
ƒ $LUILHOGSDQHOV
ƒ /SDOOHWV
ƒ 6KLSSLQJSDOOHWV
z 6WDQGDORQHSRVLWLRQV
ƒ 0LOLWDU\YDQVRU,68V
ƒ &DUJRVKLSSLQJFRQWDLQHUV
ƒ /DUJHGLDPHWHUSLSHRUFXOYHUW
ƒ 6WHHOZDWHUWDQNV
ƒ 2WKHUVWRUDJHWDQNVFOHDQHGDQGYHQWLODWHG
ƒ 9HKLFOHKXONVLQVSHFWHGDQGFOHDUHGRIGHSOHWHGXUDQLXP
 7URRSVXVHWKHIROORZLQJDVDVXJJHVWHGLQVSHFWLRQFKHFNOLVWZKHQSUHSDULQJVXUYLYDELOLW\SRVLWLRQV

6HSWHPEHU $730&73& 

&KDSWHU

z )LJKWLQJSRVLWLRQLVVLWHGLQDWDFWLFDOO\VRXQGORFDWLRQ
z )LJKWLQJSRVLWLRQLVVLWHGLQDQHQYLURQPHQWDOO\VRXQGORFDWLRQ&RQVLGHUDWLRQVDUHPDGHIRUZDWHU
GUDLQDJHDQGUXQRIIGXULQJSHULRGVRIKHDY\SUHFLSLWDWLRQ
z /RZSURILOHLVPDLQWDLQHG
z 4XDOLW\FRQVWUXFWLRQPDWHULDOVDUHXVHG
z :DOOVDUHVORSHGLQMXQJOHFRQGLWLRQVZLWKXQVWDEOHVRLO
z )ORRUVORSHVIURPFHQWHUWRERWKHQGV
z *UHQDGHVXPSLVSUHVHQWDWERWKHQGV
z 7KHVHWEDFNIRURYHUKHDGFRYHULVDPLQLPXPRIIRRWFHQWLPHWHUV RUWKHGHSWKRIFXW
z 6WULQJHUV²
ƒ $UHILUPO\RQDVWUXFWXUDOVXSSRUW
ƒ +DYHODWHUDOEUDFLQJHPSODFHGDORQJVXSSRUWV
ƒ 8VHLQFK[LQFKRULQFK[LQFKFHQWLPHWHU[FHQWLPHWHURUFHQWLPHWHU[
FHQWLPHWHUVWULQJHUVRQWKHHGJHWKHVWUHQJWKLVRQWKHGHSWKRIWKHOXPEHU
z 6XSSRUWV
ƒ 6WULQJHUVDUHILUPO\RQVXSSRUWV
ƒ 2YHUKHDGVWULQJHUVDUHDWOHDVWIHHWPHWHUVORQJWRIDFLOLWDWHVORSHGZDOOV
ƒ 6XSSRUWVH[WHQGSDVWWKHH[FDYDWLRQE\WKHGHSWKRIFXW
z 5HYHWPHQWV
ƒ 4XDOLW\RIFRQVWUXFWLRQLVFKHFNHG
ƒ 6KHHWLQJLVVXSSRUWHGE\SLFNHWV
ƒ 3LFNHWVDUHWLHGEDFN
z 2YHUKHDGFRYHU
ƒ 4XDOLW\RIVWUXFWXUDOOD\HULVLQVSHFWHG
ƒ 4XDOLW\RIGXVWOD\HUSO\ZRRGRUSDQHOVLVLQVSHFWHG6WDQGDUGGXVWSURRIOD\HULVIHHW[
IHHWPHWHUE\PHWHUVKHHWVRIôLQFKSO\ZRRGFHQWHUHGRYHUWKHILJKWLQJSRVLWLRQ
ƒ 2YHUKHDGEXUVWSURWHFWLRQLVDWOHDVWLQFKHVFHQWLPHWHUVGHHSSUHIHUDEO\VDQGEDJV
ƒ 2YHUKHDGFRYHULVZDWHUSURRIHGZLWKSODVWLFVKHHWLQJRUDSRQFKR

Fighting Positions
 $ILJKWLQJSRVLWLRQDOORZV6ROGLHUV0DULQHVDQGWKHLUZHDSRQV\VWHPVWRHQJDJHDQGGHVWUR\HQHP\
IRUFHV ZKLOH DYRLGLQJ RU ZLWKVWDQGLQJ KRVWLOH DFWLRQV $OWKRXJK MXQJOHV KDYH H[FHOOHQW FRQFHDOPHQW WKH
MXQJOHILJKWHUPXVWVWLOOSUHSDUHILJKWLQJSRVLWLRQVWRJHWDVPXFKFRYHUDVSRVVLEOH6XFKSRVLWLRQVLQFOXGH
LQGLYLGXDOFUHZVHUYHGDQGFRPEDWYHKLFOHSRVLWLRQVDVZHOODVEXQNHUV)LJKWLQJSRVLWLRQVSURYLGHFRYHU
DQGFRQFHDOPHQWDQGWREHHIIHFWLYHWKH\PXVWDOVRVXSSRUWWKHXQLW¶VGHIHQVLYHSODQ7KLVUHTXLUHVFORVH
LQWHJUDWLRQZLWKWKHFRQFHSWRIRSHUDWLRQVDQGLWVVXSSRUWLQJVFKHPHVSDUWLFXODUO\WKHVFKHPHRIPRYHPHQW
DQGPDQHXYHUVFKHPHRIPDQHXYHUDQGWKHVFKHPHRIILUHV
 2YHUKHDG FRYHU SURYLGHV SURWHFWLRQ IURP LQGLUHFW ILUH DLU EXUVW PXQLWLRQV VKUDSQHO DQG
IUDJPHQWDWLRQ2YHUKHDGFRYHURIDWOHDVWLQFKHVFHQWLPHWHUVWKLFNSURWHFWVIURPVKUDSQHODQGDLUEXVW
PXQLWLRQV 6DQGEDJV UHVWLQJ RQ D GXVWSURRI OD\HU RI LQFK  FHQWLPHWHUV SO\ZRRG SURYLGH RSWLPXP
RYHUKHDGFRYHU+RZHYHUWURRSVILOO VDQGEDJVRQO\WRSHUFHQWFDSDFLW\WRSUHVHUYHWKHEDJ¶VLQWHJULW\
ZKHQ XVHG LQ OD\HUV 7R HQVXUH DGHTXDWH VWUHQJWK FRQVXOW $73 0&73 & ,QDGHTXDWH
FRQVWUXFWLRQPDWHULDOFDQFROODSVHZKHQVWUXFNE\VKHOOIUDJPHQWV
 7RFRQFHDOWKHILJKWLQJSRVLWLRQVWURRSVWDNHDGYDQWDJHRIWKHMXQJOH¶VQDWXUDOVXUURXQGLQJV:KHQ
SRVVLEOH WKH\ LQFRUSRUDWH ODUJHIDOOHQRUVWDQGLQJWUHHVDQGGHSUHVVLRQVLQWR PDQPDGHILJKWLQJSRVLWLRQV
'LIIHUHQW W\SHV RI ZRRG VRLO DQG RWKHU PDWHULDOV SURYLGH YDU\LQJ GHJUHHV RI SURWHFWLRQ 6HH
$730&73&IRUWKHWKLFNQHVVRIGLUWRUVDQGEDJVQHHGHGIRUDGHTXDWHSURWHFWLRQ

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

 $OWKRXJK GLIILFXOW DOO SRVLWLRQV VKRXOG SURYLGH IRU GUDLQDJH GXULQJ WURSLFDO UDLQVWRUPV 7URRSV
SRVLWLRQ WKH IORRU WR VORSH IURP WKH FHQWHU RI WKH SRVLWLRQ WRZDUG WKH JUHQDGH VXPSV 'XULQJ WKH UDLQLQJ
VHDVRQWKLVSRVLWLRQLQJSUHYHQWVLPPHUVLRQ
 ,IWLPHSHUPLWVWURRSVEXLOGDQHOHYDWHGIORRUVWDQGRIVDSOLQJVJUDYHORUSDOOHWVVRWKDWWKH\GRQRW
KDYHWRVWDQGLQPXGRUZDWHU*UHQDGHVXPSVPXVWUHPDLQFOHDU 8QLWVDFKLHYHDGGLWLRQDOZDWHUSURRILQJ
ZLWKSODVWLFJDUEDJHEDJVSRQFKRVRURWKHUZDWHUSURRIIDEULFLQFRUSRUDWHGLQWRWKHRYHUKHDGFRYHU-XQJOH
VRLOVDUHVRIWDQGHURGHTXLFNO\GXULQJWKHUDLQ\VHDVRQ5HYHWPHQWVKHOSSUHYHQWWKHZDOOVRIDSRVLWLRQIURP
FDYLQJLQ7URRSVXVHDQFKRUVWDNHVWRWLHRIIUHYHWPHQWVGULYHQIOXVKZLWKWKHJURXQGWRSUHYHQWFRQIXVLRQ
ZLWKILULQJVWDNHV

Protective Positions
 3URWHFWLYHSRVLWLRQVSURWHFWWKHRFFXS\LQJSHUVRQQHOYHKLFOHVDQGHTXLSPHQWE\HQDEOLQJWKHPWR
DYRLGRUZLWKVWDQGKRVWLOHDFWLRQV$VZLWKILJKWLQJSRVLWLRQVSURWHFWLYHSRVLWLRQVSURYLGHFRYHUFDPRXIODJH
RUFRQFHDOPHQWRUDFRPELQDWLRQRIWKHWKUHH8QOLNHILJKWLQJSRVLWLRQVSURWHFWLYHSRVLWLRQVGR QRWIRFXV
RQSURYLGLQJDSRVLWLRQIURPZKLFKWRHQJDJHWKHHQHP\
 &RPPDQG SRVWV DUH SUREDEO\ WKH PRVW GLIILFXOW SRVLWLRQV WR FRQFHDO DOWKRXJK WKHLU QHHG IRU
FRQFHDOPHQWLVJUHDW7KH\UHTXLUHVWULFWFDPRXIODJHGLVFLSOLQH&RPPDQGHUVSURKLELWYHKLFOHVDQGDLUFUDIW
WRDSSURDFKFORVHUWKDQDEVROXWHO\QHFHVVDU\:KHQHYHUSRVVLEOH WURRSV GLJLQWKH HQWLUH FRPPDQGSRVW
7KH\XVHHQJLQHHUDVVHWVWREXLOGDEHUPDURXQGWKHSHULPHWHUKHOSEUHDNXSWKHVLOKRXHWWHDQGHQKDQFH
VHFXULW\7KH\DYRLGSODFLQJRWKHUHTXLSPHQWWRRFORVHWRDYRLGGUDZLQJDWWHQWLRQWRWKHVLWH7URRSVGLJLQ
JHQHUDWRUVVRWKH\KDYHDGHTXDWHDLUVSDFHIRUFRROLQJ5DGLRVDQGDQWHQQDV\VWHPVPXVWEHUHPRWHGDVIDU
DZD\DVSRVVLEOHLQGLIIHUHQWGLUHFWLRQV

Hardened Facilities
 0LOLWDU\IRUFHVXVHPDQ\IDFLOLWLHVLQDGGLWLRQWRILJKWLQJDQGSURWHFWLYHSRVLWLRQV:KHQDIDFLOLW\
UHTXLUHV HQKDQFHG SURWHFWLRQ LW FDQ EH KDUGHQHG WR SURYLGH RU LPSURYH FRYHU WR WKH VWUXFWXUH DQG LWV
RFFXSDQWV+DUGHQLQJKHOSVWRDYRLGRUZLWKVWDQGKRVWLOHDFWLRQVDQGLVDFFRPSOLVKHGE\XVLQJEDUULHUVZDOOV
VKLHOGVEHUPVRURWKHUW\SHVRISK\VLFDOSURWHFWLRQ
 +DUGHQLQJRIIDFLOLWLHVDOVRLQFOXGHVWKHXVHRIEULGJHSURWHFWLYHGHYLFHVVXFKDVDQWLPLQHERRPV
LPSDFW ERRPV DQG DQWLVZLPPHU QHWV 7KHVH GHYLFHV W\SLFDOO\ SURWHFW EULGJHV RU FURVVLQJ VLWHV IURP
ZDWHUERUQHGHPROLWLRQWHDPVIORDWLQJPLQHVRUIORDWLQJGHEULV6HH$730&73$0&:3
GLVFXVVHVJDSFURVVLQJ

Camouflage and Concealment

 &DPRXIODJHLVPDWHULDOVDQGWHFKQLTXHVXVHGWRKLGHEOHQGGLVJXLVHRUGLVUXSWWKHDSSHDUDQFHRI
PLOLWDU\ WDUJHWV DJDLQVW WKHLU EDFNJURXQGV WR SUHYHQW YLVXDO DQG HOHFWURQLF GHWHFWLRQ E\ HQHP\ IRUFHV
&DPRXIODJHDQGFRQFHDOPHQWFDQSUHYHQWDQHQHP\IURPLGHQWLI\LQJIULHQGO\WURRSVHTXLSPHQWDFWLYLWLHV
RULQVWDOODWLRQV2QHRIWKHIXQGDPHQWDOVRIFDPRXIODJHLQDQ\HQYLURQPHQWLVWRILWLQWRWKHH[LVWLQJJURXQG
SDWWHUQZKLOHGLVUXSWLQJWKHQDWXUDOWHUUDLQDQGIROLDJHDVOLWWOHDVSRVVLEOH:KHQWURRSVFRQVWUXFWPDQPDGH
SRVLWLRQVWKH\FDPRXIODJHZLWKDUWLILFLDOFRYHUWRSUHYHQWGHWHFWLRQ8QLWVNHHSFDPRXIODJHIUHVKZLOWHGRU
GHDGYHJHWDWLRQFDQJLYHDZD\SRVLWLRQV
 3RRUFDPRXIODJHLQRQHSRVLWLRQFDQOHDGWRWDFWLFDODQGRSHUDWLRQDOIDLOXUHDVRQHSRRUO\FRQFHDOHG
YHKLFOHFDQFRPSURPLVHWKHHQWLUHIRUFH,PSURYLVDWLRQZLWKDYDLODEOHPDWHULDOVLVMXVWDVLPSRUWDQWDVWKH
SURSHUHPSOR\PHQWRIGHGLFDWHGDQGVSHFLDOL]HGFDPRXIODJHV\VWHPV7KHHQHP\FDQHDVLO\REVHUYHIURP
ORQJGLVWDQFHVWKHVKLQHIURPRSWLFDOLQVWUXPHQWVZKLFKVKRXOGEHNHSWVKDGHGDQGFKHPLFDODJHQWUHVLVWDQW
FRDWLQJSDLQWWKDWKDVEHHQSROLVKHGE\FRQWLQXDOZHDU7URRSVFRYHUUXQQLQJJHDUVRQWUDFNVWKDWKDYHEHHQ
SROLVKHGE\ZHDUZLWKEXUODSZKHQVWDWLRQDU\8QLWVUHPRYHRUORZHUZLQGVFUHHQVDQGZLQGRZVWRSUHYHQW
UHIOHFWLRQRIWKHVXQDQGKHDW7KH\UHGXFHYHKLFOHVLOKRXHWWHVE\FRYHULQJYHKLFOHVZLWKDZLGHPHVKQHW
DQGXVLQJIROLDJHEUDFNHWVWRDWWDFKORFDOYHJHWDWLRQ7ZLQHRUZLUHPD\EHXVHGDVDQDOWHUQDWLYHWRWKHPHVK
QHWSURYLGHGYHJHWDWLRQLVDYDLODEOH7URRSVFDQREWDLQORFDOPDWHULDOVWREUHDNXSWKHGLVWLQFWLYHRXWOLQHVRI
PLOLWDU\HTXLSPHQWWKDWDUHHDVLO\REVHUYHGIURPJUHDWGLVWDQFHVLQWKHMXQJOHHQYLURQPHQW6HH70
IRUGHVFULSWLRQRIGLVUXSWLYHSDWWHUQSDLQWLQJIRUYHKLFOHVDQGDLUFUDIW

6HSWHPEHU $730&73& 

&KDSWHU

 6XVWDLQPHQWDVVHWVUHO\RQFRQFHDOPHQWIRUPRVWRIWKHLUSURWHFWLRQ7KHIROORZLQJJXLGHOLQHVKHOS
XQLWFRPPDQGHUVLQFRQFHDOLQJWUDLQVZKLOHVWDWLRQDU\RURQWKHPRYH
z :KHQVWDWLRQDU\SODFHFDPRXIODJHFDQRSLHVRYHUYLWDODVVHWVVXFKDVWDQNHUVWRGLVJXLVHWKHLU
FULWLFDOIXQFWLRQDQGUHGXFHKHDWDEVRUSWLRQ
z :KHQWUDYHOOLQJRQVRIWVRLORUPXGKDYHYHKLFOHVIROORZLQWKHWUDFNVRIWKHSUHFHGLQJYHKLFOHWR
FRPSOLFDWHWKHHQHP\¶VDELOLW\WRGHWHUPLQHWKHQXPEHURIYHKLFOHVLQDFRQYR\
z :KHQVWDWLRQDU\KDYHYHKLFOHVDYRLGKDOWLQJLQDFOHDUO\GLVWLQJXLVKDEOHSDWWHUQJHRPHWULFDOO\
XQLIRUPSDWWHUQVVWDQGRXWLQDQDWXUDOHQYLURQPHQW
 7KH SUHIHUUHG FDPRXIODJH QHW LV WKH OLJKWZHLJKW FDPRXIODJH VFUHHQ V\VWHP ZKLFK SURYLGHV
FRQFHDOPHQW IURP YLVXDO QHDU ,5 DQG UDGDU VHQVRU GHYLFHV $GGLWLRQDOO\ WKH WUDQVSDUHQW YHUVLRQ RI WKH
OLJKWZHLJKW FDPRXIODJH VFUHHQ V\VWHP DOORZV 86 XQLWV WR FDPRXIODJH UDGDUV ZLWKRXW OLPLWLQJ WKHLU
HIIHFWLYHQHVV$OWHUQDWLYHVWRWKHOLJKWZHLJKWFDPRXIODJHVFUHHQV\VWHPLQRUGHURIHIIHFWLYHQHVV LQFOXGH²
z 7KHVSHFLDOO\SURGXFHGMXQJOHSDWWHUQQHWRIWKHOLJKWZHLJKWFDPRXIODJHVFUHHQV\VWHP
z $QRSHQZHDYHFORWKDSSURSULDWHO\FRORUHGVWLWFKHGWRDQRUGLQDU\ZLGHPHVKQHW7KLVSURYLGHV
ERWKFRORUDQGWH[WXUHDQGFDQEHVXLWDEO\JDUQLVKHGZLWKUDGDUVFDWWHULQJSODVWLFVXFKDVWKDWXVHG
LQWKHOLJKWZHLJKWVFUHHQLQJV\VWHPDQGZLWKDQ\ORFDOYHJHWDWLRQ
z $FRORUDSSURSULDWHFRYHURIFORVHZHDYHFORWK
z $VWDQGDUGQHWJDUQLVKHGVROLGWKUHDGHGLQORQJVWUDLJKWVWULSVWKDWKDYHEHHQFRORUHGWRKDUPRQL]H
ZLWKWKHWHUUDLQ7URRSVQHHGWRPDLQWDLQWKHJDUQLVKLQJ
 7KHQXPEHURIQHWVUHTXLUHGGHSHQGVRQWKHVL]HRIWKHHTXLSPHQWWRFRYHU$VXIILFLHQWQXPEHURI
QHWVDOORZVDVXIILFLHQWJUDGXDOVORSHRIQRWPRUHWKDQGHJUHHVIURPWKHWRSRIWKHHTXLSPHQWWRWKHMXQJOH
IORRU7URRSVSUHYHQWVKDUSO\VORSLQJQHWVVLQFHWKH\LQGLFDWHPDQPDGHVWUXFWXUHVDQGPD\FRPSURPLVHWKH
SRVLWLRQ
 :KHQXVLQJQHWVIRUVWDWLRQDU\HTXLSPHQW²
z 'RQRWDOORZQHWVWRWRXFKVHQVLWLYHLWHPVVXFKDVKHOLFRSWHUURWRUKHDGVDQGUDGLRDQWHQQDVZKLFK
PD\FDXVHDQHWWRFDWFKILUHRUGDPDJHWKHHTXLSPHQW
z 'RQRWSXOOQHWVVRWLJKWWKDWHDFKVXSSRUWLQJSROHVWDQGVRXW
z (QVXUHWKHQHWGRHVQRWSUHYHQWWKHHTXLSPHQWIURPIXOILOOLQJLWVSULPDU\WDVN6RPHHTXLSPHQW
VXFKDVKHOLFRSWHUVUHTXLUHFDPRXIODJHEHUHPRYHGDQGVHFXUHGWRHPSOR\WKHHTXLSPHQW
z $YRLGVWUDLJKWHGJHGSDWWHUQVRQWKHJURXQGDVWKHVHLQGLFDWHDPDQPDGHVWUXFWXUH
z 8VHEXUODSVSUD\SDLQWHGLQDQRQGHVFULSWMXQJOHFRORUWRFRYHUUHIOHFWLYHVXUIDFHVH[FOXGLQJILUH
FRQWURORSWLFV
z &XWMXQJOHVFUXELQWKHLPPHGLDWHDUHD
z 8VHSROHVQDWXUDORUPDQPDGHWRUDLVHWKHQHWVIURPWKHHTXLSPHQWDQGFRQFHDOLWVVKDSH

 $IWHUSURYLGLQJORFDOVHFXULW\FDPRXIODJHLVW\SLFDOO\WKHQH[WSULRULW\DWYHKLFOHKDOWV$FWLRQVWR
EHWDNHQDUH
z 6LWHLQYHJHWDWLRQRUVKDGRZLIDYDLODEOH
z &RYHUVKLQ\VXUIDFHVDQGVKDGRZDUHDVZLWKEXUODSVFUHHQV
z 'UDSHFDPRXIODJHQHWWLQJ
z $GGDYDLODEOHYHJHWDWLRQWRWKHQHW
z 2EVFXUHRUVZHHSDZD\YHKLFOHWUDFNVIRUIHHWPHWHUVEHKLQGYHKLFOHV

 6WDWLRQDU\DLUFUDIWWDNHDUHODWLYHO\ORQJWLPHWRFRQFHDODVWKH\DUHIUDJLOHLQFRPSDULVRQZLWKRWKHU
HTXLSPHQW KDYH D FRQVLGHUDEOH KHDW VLJQDWXUH DQG PXVW DOVR EH UHDGLO\ DFFHVVLEOH IRU PDLQWHQDQFH 7KH
PRUH WKH\DUHFRQFHDOHGWKH ORQJHU WKHLUUHVSRQVHWLPHLV OLNHO\WREH6RPHDLUFUDIW PD\QRWEHDEOHWR
FRQGXFWRSHUDWLRQVZKLOHFDUU\LQJWKHLUVXSSRUWLQJFDPRXIODJHHTXLSPHQWDQGUHTXLUHVXSSRUWLQJDVVHWV7KH
IROORZLQJDFWLRQVLPSURYHWKHFRQFHDOPHQWRIDQDYLDWLRQWDFWLFDODVVHPEO\DUHD
z (QVXUHDLUFUDIWDSSURDFKWKHVLWHIURPDWHUUDLQPDVNLQJDYHQXHWRDYRLGHQHP\VXUYHLOODQFH
z &RYHUDOOUHIOHFWLYHVXUIDFHV
z 0RYHDLUFUDIWLQWRVKDGRZLISRVVLEOH

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

z 5RWDWHWKHPDLQURWRUGHSHQGLQJRQWKHW\SHXQWLOLWLVDWDGHJUHHDQJOHZLWKWKHIXVHODJHDQG

GUDSHDQHWRYHUWKHURWRUDQGIXVHODJH
z &RQFHDOWKHUHPDLQGHURIWKHDLUFUDIW

Supply Points
 ,WLVHVSHFLDOO\LPSRUWDQWWRFRQFHDOVXSSO\SRLQWVGLVSHUVHGWKURXJKRXWWKHMXQJOH'XULQJMXQJOH
RSHUDWLRQVWKHHQHP\RIWHQGHVLJQDWHV VXSSO\SRLQWVDVKLJKYDOXHWDUJHWVDVWKHLUGHVWUXFWLRQHVSHFLDOO\
ZDWHU DQG IXHO VXSSOLHV FDQ HIIHFWLYHO\ FULSSOH WKH IRUFH $ high-value target LV D WDUJHW WKH HQHP\
FRPPDQGHUUHTXLUHVIRUWKHVXFFHVVIXOFRPSOHWLRQRIWKHPLVVLRQ-37KHKLJKYROXPHRIWUDIILFWR
VXSSO\ SRLQWV RIWHQ GDPDJHV WKH HQYLURQPHQW 7KH HQHP\ FDQ HDVLO\ GHWHFWHG WKH GDPDJH ZKLFK
FRPSURPLVHVWKHORFDWLRQ¶VVHFXULW\7RPLWLJDWHWKLV XQLWVVWULYHWRFRQFHDOVXSSO\SRLQWVDQGRWKHUFULWLFDO
VLWHVWKURXJKRXWWKHVXSSRUWDUHD
 :KHQ VHOHFWLQJ SRVLWLRQV IRU VXSSO\ SRLQWV GXULQJ MXQJOH RSHUDWLRQV FRQFHDOPHQW WUXPSV
FRQYHQLHQFH7KLVLVHVSHFLDOO\LPSRUWDQWZKHQDLUGHIHQVHFRYHUDJHLVOLPLWHGDQGIULHQGO\DLUVXSHULRULW\LV
FRQWHVWHGRUVSRUDGLF:KHQHVWDEOLVKLQJVXSSO\SRLQWVXQLWVFRQVLGHUWKHIROORZLQJ
z 3RVLWLRQVXSSO\SRLQWVDORQJH[LVWLQJURDGVDQGWUDLOVDVWKHFRQVWUXFWLRQRIQHZURDGVRUWUDLOVFDQ
FRPSURPLVHWKHVXSSO\SRLQW
z 3RVLWLRQVWRFNVLQLUUHJXODUVSDFHVERWKLQOHQJWKDQGGHSWKWRWKHPD[LPXPH[WHQWSRVVLEOHVR
WKDWWKHUHLVQRGHILQLWHSDWWHUQ
z 3LOHVWRFNVDVORZDVSRVVLEOHDQGSUHIHUDEO\GXJLQ)RUH[DPSOHVWDFNJDVROLQHFDQVRQO\RQH
FDQKLJK
z 3UHSDUHWKHVKDSHRIWKHDUHDQRWVTXDUHRUUHFWDQJXODUEXWIROORZLQJWKHORFDOJURXQGSDWWHUQ
z &RQFHDOVWRFNVZLWKWKHOLJKWZHLJKWFDPRXIODJHVFUHHQV\VWHPEXUODSRUORFDOYHJHWDWLRQ
z 0L[WKHFRQWHQWVRIHDFKVXSSO\SRLQWVRWKDWWKHGHVWUXFWLRQRIRQHVXSSO\SRLQWZLOOQRWFDXVHDQ
LPPHGLDWHVKRUWDJHRIDSDUWLFXODUFRPPRGLW\

$,5$1'0,66,/('()(16(
 $LUDQGPLVVLOHGHIHQVHSURWHFWVWKHIRUFHIURPPLVVLOHDWWDFNDLUDWWDFNDQGDHULDOVXUYHLOODQFHE\
EDOOLVWLF PLVVLOHV FUXLVH PLVVLOHV IL[HG DQG URWDU\ZLQJ DLUFUDIW DQG 8$6 ,W SUHYHQWV HQHPLHV IURP
LQWHUGLFWLQJ IULHQGO\ IRUFHV ZKLOH IUHHLQJ FRPPDQGHUV WR V\QFKURQL]H PRYHPHQW DQG ILUHSRZHU $OO
PHPEHUVRIWKHFRPELQHGDUPVWHDPSHUIRUPDLUGHIHQVHWDVNVKRZHYHUJURXQGEDVHGDLUGHIHQVHDUWLOOHU\
XQLWVH[HFXWHPRVW$UP\DLUDQGPLVVLOHGHIHQVHRSHUDWLRQV$LUDQGPLVVLOHGHIHQVHHOHPHQWVFRRUGLQDWHDQG
V\QFKURQL]HGHIHQVLYHILUHVWRSURWHFWLQVWDOODWLRQVDQGSHUVRQQHOIURPRYHUWKHKRUL]RQVWULNHV$UP\DLUDQG
PLVVLOH GHIHQVH FDSDELOLWLHV LQFUHDVH DLUVSDFH VLWXDWLRQDO XQGHUVWDQGLQJ DQG VXSSRUW WKH DUHD DLU GHIHQVH
FRPPDQGHU
 7KH DLU DQG PLVVLOH GHIHQVH DVVHWV LQWHJUDWH SURWHFWLYH V\VWHPV E\ XVLQJ WKH VL[ HPSOR\PHQW
JXLGHOLQHV²PXWXDO VXSSRUW RYHUODSSLQJ ILUHV EDODQFHG ILUHV ZHLJKWHG FRYHUDJH HDUO\ HQJDJHPHQW DQG
GHIHQVHLQGHSWK²WRPDVVDQGPL[DLUDQGPLVVLOHGHIHQVHFDSDELOLWLHV7KHVHHPSOR\PHQWJXLGHOLQHVHQDEOH
DLUGHIHQVHDUWLOOHU\IRUFHVWRVXFFHVVIXOO\DFFRPSOLVKFRPEDWPLVVLRQVDQGVXSSRUWRYHUDOOIRUFHREMHFWLYHV
 $OOXQLWVGHYHORSDVFKHPHIRUFRXQWHULQJDLUDWWDFNVWKDWHPSOR\VERWKDFWLYHDQGSDVVLYHPHDVXUHV
3DVVLYHDLUGHIHQVHPHDVXUHVUHGXFHDXQLW¶VYXOQHUDELOLW\WRRUPLQLPL]HGDPDJHIURPDQDLUDWWDFN3DVVLYH
DLUGHIHQVHPHDVXUHVLQFOXGHFDPRXIODJHDQGFRQFHDOPHQWSRVLWLRQLQJDQGGLVSHUVLRQWKHFRQVWUXFWLRQRI
ILJKWLQJDQGSURWHFWLYHSRVLWLRQVKDUGHQLQJRISRVLWLRQVDQGIDFLOLWLHVDQGUHFRYHU\DQGUHFRQVWLWXWLRQSODQV
$FWLYHDLUGHIHQVHPHDVXUHVDUHWKHGLUHFWDFWLRQVWDNHQWRGHVWUR\HQHP\DHULDOSODWIRUPVRUUHGXFHWKHLU
HIIHFWLYHQHVV6HH$73IRUDGGLWLRQDOLQIRUPDWLRQRQDLUGHIHQVHWHFKQLTXHV
 6WDIIVFDUHIXOO\SODQWRHQVXUHWKDWGLVSHUVLRQRIIRUFHVGRHVQRWFUHDWHJDSVLQDLUGHIHQVHFRYHUDJH
([WHQGHG/2&VDQGWKHGLVSHUVHGQDWXUHRIMXQJOHRSHUDWLRQV LQFUHDVHVWKHUHTXLUHPHQWVIRUGHGLFDWHGDLU
DQGPLVVLOHGHIHQVHXQLWV7RPLWLJDWHJDSVLQFRYHUDJHFRPPDQGHUVPD\UHTXLUHKLJKO\PRELOHVKRUWUDQJH
DLUGHIHQVHXQLWVWRVXSSRUWPDQHXYHUXQLWV7KHVHDLUGHIHQVHDVVHWVPXVWEHDVPRELOHDVWKHIRUFHWKH\DUH
WDVNHGZLWKVXSSRUWLQJ/HVVPRELOHLQWHUPHGLDWHUDQJHDLUGHIHQVHXQLWVDQGUDGDUDVVHWVDUHSRVLWLRQHGLQ
DUHDVZKHUHUHVWULFWLYHMXQJOHWHUUDLQZLOOQRWLQWHUIHUHZLWKWKHLURSHUDWLRQ7DFWLFDOOHYHODFWLYHDQGSDVVLYH

6HSWHPEHU $730&73& 

&KDSWHU

DLUGHIHQVHPHDVXUHVFDQEHHIIHFWLYHEXWDUHQRWDVXEVWLWXWHIRUWKHFDSDELOLWLHVSURYLGHGE\GHGLFDWHGDLU
GHIHQVHXQLWVDJDLQVWSHHUWKUHDWV

32/,&(23(5$7,216
 0LOLWDU\SROLFHVXSSRUWMXQJOHRSHUDWLRQVE\FRQGXFWLQJSROLFHRSHUDWLRQVDQGGHWHQWLRQRSHUDWLRQV
DQG E\ SURYLGLQJ VHFXULW\ DQG PRELOLW\ VXSSRUW 0LOLWDU\ SROLFH WUDLQHG DQG KDYH HTXLSPHQW WR VXSSRUW
PRELOLW\RSHUDWLRQVVXFKDVEUHDFKHVJDSFURVVLQJVDQGSDVVDJHRIOLQHVFRQGXFW065RU$65UHJXODWLRQ
DQGHQIRUFHPHQWDQGGHYHORSDQGPDQDJHDWUDIILFFRQWUROSODQ0LOLWDU\SROLFHDUHDOVRFULWLFDOHQDEOHUVIRU
DUHD VHFXULW\ RSHUDWLRQV VXFK DV VHFXULQJ EDVHVEDVH FDPSV VHFXULQJ /2&V VXSSO\ SRLQWV DQG FRQYR\V
FRQGXFWLQJUHVSRQVHIRUFHRSHUDWLRQVDQGH[HFXWLQJSRUWDQGSLHUVHFXULW\&RPPDQGHUVSUHIHUHPSOR\LQJ
PLOLWDU\SROLFHIRUGHWDLQHHRSHUDWLRQVDQGIRUSURYLGLQJVXSSRUWWRSRSXODFHDQGUHVRXUFHFRQWURORSHUDWLRQV
VXFKDVGLVORFDWHGFLYLOLDQRSHUDWLRQVDQGQRQFRPEDWDQWHYDFXDWLRQRSHUDWLRQV

&+(0,&$/ %,2/2*,&$/ 5$',2/2*,&$/ $1' 18&/($523(5$7,216

 Chemical, biological, radiological, and nuclear operationsLQFOXGHWKHHPSOR\PHQWRIFDSDELOLWLHV
WKDWDVVHVVSURWHFWDJDLQVWDQGPLWLJDWHWKHHQWLUHUDQJHRIFKHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDU
LQFLGHQWV WR HQDEOH IUHHGRP RI DFWLRQ )0  &%51 WKUHDWV DQG KD]DUGV LQFOXGH ZHDSRQV RI PDVV
GHVWUXFWLRQ LPSURYLVHG ZHDSRQV DQG GHYLFHV DQG WR[LF LQGXVWULDO FKHPLFDOV NQRZQ DV 7,&V &%51
ZHDSRQV KDYH WKH SRWHQWLDO WR FDXVH PDVV FDVXDOWLHV DQG VLJQLILFDQWO\ GLVUXSW RSHUDWLRQV E\ FRPSOLFDWLQJ
VWDQGDUG WDVNV 'XULQJ ODUJHVFDOH FRPEDW RSHUDWLRQV PRVW HQHPLHV OLNHO\ KDYH VLJQLILFDQW &%51
FDSDELOLWLHVDQGWKHGRFWULQHWRHPSOR\WKHPGXULQJFRQYHQWLRQDORSHUDWLRQV
 -XQJOH DUHDV UHTXLUH H[FHSWLRQDOO\ KLJK VWDQGDUGV RI GLVFLSOLQH DQG FRQGLWLRQLQJ WR PDLQWDLQ DQ
HIIHFWLYH &%51 GHIHQVH UHDGLQHVV 7KHVH KLJKHU VWDQGDUGV UHVXOW IURP WKH MXQJOH¶V KLJK WHPSHUDWXUH
KXPLGLW\DQGKHDY\UDLQIDOOZKLFKFRPSRXQGWKHHIIHFWVRIRSHUDWLQJLQ&%51SURWHFWLYHHTXLSPHQW:LQG
ZKLFKKHOSVGLVSHUVHSHUVLVWHQWFKHPLFDODJHQWVLVRIWHQUHGXFHGE\WKHMXQJOH¶VGHQVHYHJHWDWLRQ)RUPRUH
LQIRUPDWLRQ RQ &%51 RSHUDWLRQV UHIHU WR )0  DQG $73 0&53 (1773
$)773

:HDWKHU(IIHFWVRQ&%512SHUDWLRQVDQG2EVFXUDQWV
 7KH HIIHFWLYHQHVV RI &%51 ZHDSRQV DQG REVFXUDQWV LV GLUHFWO\ SURSRUWLRQDO WR DLU VWDELOLW\ $LU
VWDELOLW\UHVXOWVIURPWHPSHUDWXUHYDULDWLRQVDWGLIIHUHQWDOWLWXGHV7HPSHUDWXUHIOXFWXDWLRQVEHWZHHQGD\DQG
QLJKWGLUHFWO\DIIHFWDLUVWDELOLW\$WQLJKWDQGLQHDUO\PRUQLQJWKHMXQJOHDLULVYHU\VWDEOH&%51DJHQWV
DQGREVFXUDQWVHPSOR\HGXQGHUVWDEOHFRQGLWLRQVDUHWKHPRVWSHUVLVWHQWDQGRIIHUEHWWHUDUHDFRYHUDJHWKDQ
DJHQWVDQGREVFXUDQWVHPSOR\HGLQXQVWDEOHDLUFRQGLWLRQV-XQJOHDLULVYHU\XQVWDEOHGXULQJWKHODWHPRUQLQJ
WKURXJKDIWHUQRRQ&%51DJHQWVDQGREVFXUDQWVHPSOR\HGLQWKHODWHPRUQLQJDQGDIWHUQRRQRIWHQGLVVLSDWH
PRUH TXLFNO\ 7KLV PD\ OHDG WR LQHIIHFWLYH WDUJHW DUHD FRYHUDJH 7KUHH W\SHV RI WHPSHUDWXUH GLIIHUHQFHV
LQIOXHQFH&%51DQGREVFXUDQWRSHUDWLRQV
z 8QVWDEOHODSVH8QVWDEOHFRQGLWLRQVH[LVWZKHQDLUWHPSHUDWXUHGHFUHDVHVZLWKDOWLWXGH,QWKH
MXQJOHWKLVPRVWO\RFFXUVEHWZHHQODWHPRUQLQJDQGHDUO\HYHQLQJ
z 1HXWUDO1HXWUDOFRQGLWLRQVH[LVWZKHQDLUWHPSHUDWXUHGRHVQRWFKDQJHZLWKDOWLWXGH,QWKHMXQJOH
WKLVPRVWO\RFFXUVGXULQJHDUO\PRUQLQJDQGHDUO\HYHQLQJ
z 6WDEOHLQYHUVLRQ6WDEOHLQYHUVLRQZHDWKHUFRQGLWLRQVH[LVWZKHQWKHDLUWHPSHUDWXUHLQFUHDVHV
ZLWKDOWLWXGH,QWKHMXQJOHWKLVPRVWO\RFFXUVEHWZHHQODWHHYHQLQJDQGHDUO\PRUQLQJ
 :LQGSDWWHUQVLQWKHMXQJOHDUHVHDVRQDOO\VWHDG\DQGSUHGLFWDEOH:LQGKDVWKHJUHDWHVWHIIHFWRQ
WKHGLVSHUVDORIELRORJLFDOFKHPLFDOREVFXUDQWDQGUDGLRDFWLYHFORXGV*HQHUDOO\WKHRSWLPDOZLQGVSHHG
IRU HIIHFWLYH GLVSHUVDO RI ELRORJLFDO FKHPLFDO REVFXUDQW DQG UDGLRDFWLYH FORXGV LV EHWZHHQ ILYH DQG WHQ
NQRWV%HORZILYHNQRWVDQGWKHFORXGVUHPDLQVWDJQDQWDQGGRQRWVSUHDGRSWLPDOO\$ERYHWHQNQRWVDQG
WKH FORXGV WHQG WR GLVLQWHJUDWH WKHUHE\ UHGXFLQJ HIIHFWLYHQHVV DQG SRWHQWLDOO\ VSUHDGLQJ WKH FORXG LQ DQ
XQSUHGLFWHGPDQQHU

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

:DWHU5HTXLUHPHQWV
 :DWHU UHTXLUHPHQWV IRU GHFRQWDPLQDWLRQ DQG FRQVXPSWLRQ LQFUHDVH GUDPDWLFDOO\ LQ D &%51
HQYLURQPHQW&%51SURWHFWLYHHTXLSPHQWLQFUHDVHVSHUVSLUDWLRQDQGUHTXLUHVLQFUHDVHGZDWHUFRQVXPSWLRQ
WRPLWLJDWHOLTXLGORVWWKURXJKVZHDW5HSODFHPHQWRIIOXLGVORVWWKURXJKVZHDWLVDFULWLFDOXVHRIZDWHUDQG
JHQHUDOO\FRPHVDKHDGRIDOORWKHUXVHV

&KHPLFDO:HDSRQVLQWKH-XQJOH
 &KHPLFDOZHDSRQVDUHSURKLELWHGXQGHUWKH&KHPLFDO:HDSRQV&RQYHQWLRQKRZHYHUVHYHUDOSHHU
WKUHDWVSRVVHVVFKHPLFDOZHDSRQVDQGVHHWKHLUXVHDVDPHDQVIRUDFKLHYLQJRSHUDWLRQDORYHUPDWFKDJDLQVW
86 IRUFHV 7KUHDW GRFWULQH GHVFULEHV WKH HPSOR\PHQW RI FKHPLFDO ZHDSRQV LQ FRQVWULFWLYH FDQDOL]LQJ
WHUUDLQ VXFK DV WKH MXQJOH DV D ZD\ WR GHQ\ NH\ WHUUDLQ LVRODWH IULHQGO\ IRUFHV DQG LQGXFH EDWWOHILHOG
FRPSOH[LW\&KHPLFDOKD]DUGVDQGFRQFHUQVKDYHH[SDQGHGJUHDWO\VLQFHWKH&KHPLFDO:HDSRQV&RQYHQWLRQ
ZDVVLJQHGDQGLQFOXGHDODUJHQXPEHURIWR[LFLQGXVWULDOFKHPLFDOV&KHPLFDOKD]DUGVDUHDQ\FKHPLFDOV
PDQXIDFWXUHGXVHGWUDQVSRUWHGRUVWRUHGWKDWFDQFDXVHGHDWKRURWKHUKDUPWKURXJKWKHWR[LFSURSHUWLHV
RIWKRVHPDWHULDOV
 &RPPDQGHUVFRQVLGHUKRZXVLQJFKHPLFDODJHQWVDIIHFWVRIIHQVLYHDQGGHIHQVLYHMXQJOHRSHUDWLRQV
8QLWVFDQXVHFKHPLFDODJHQWVWRFUHDWHFDVXDOWLHVGHJUDGHSHUIRUPDQFHVORZPDQHXYHUGHQ\WHUUDLQDQG
GLVUXSWORJLVWLFDOVXSSRUW(QJLQHHUVFDQPL[KLJKH[SORVLYHVZLWKWKHFKHPLFDODWWDFNWRFRQFHDOWKHXVHRI
FKHPLFDOVDQGFRPSOHPHQWWKHLUHIIHFWV8QLWVW\SLFDOO\XVHSHUVLVWHQWFKHPLFDODJHQWVWRFUHDWHFRQWDPLQDWHG
REVWDFOHVWRPDQHXYHUDURXQGDQGQRQSHUVLVWHQWDJHQWVWRFDXVHFDVXDOWLHV
 7KH MXQJOH HQYLURQPHQW FRQVLGHUDEO\ DIIHFWV WKH XVH DQG HIIHFWLYHQHVV RI FKHPLFDO ZHDSRQV DQG
KD]DUGV+LJKGD\WLPHWHPSHUDWXUHVRIWKHMXQJOHLQFUHDVHWKHLQFDSDFLWDWLQJHIIHFWVRIOLTXLGDJHQWVEHFDXVH
WKH\YDSRUL]H TXLFNO\5RXWLQHO\ORZMXQJOH ZLQGVFDXVH YDSRUVXQGHUWKHFDQRS\WRKDQJLQWKHDLUDQG
UHPDLQ KD]DUGRXV IRU ORQJ SHULRGV EXW KHDY\ YHJHWDWLRQ FDXVHV FKHPLFDO FORXGV WR GULIW GRZQZLQG LQ
LUUHJXODUSDWWHUQVDQGFRQFHQWUDWLRQV&KHPLFDODJHQWVGLVSHUVHGRYHUVWLOOERGLHVRIZDWHUVXFKDVODNHVDQG
SRQGVFDQEHFRPHPRUHSHUVLVWHQWDQGSUHVHQWDSURORQJHGKD]DUG6SUD\HGDJHQWVZRUNOHVVHIIHFWLYHO\LQ
WKHMXQJOHDVWKHWKLFNFDQRS\SUHYHQWVWKHGURSOHWVIURPUHDFKLQJWKHMXQJOHIORRU
 6XSSRUWDUHDVDQGORJLVWLFDOKXEVDUHOXFUDWLYHWDUJHWVIRUFKHPLFDODWWDFNV&RQWDPLQDWLQJORJLVWLFDO
VXSSOLHV DQG HTXLSPHQW FDQ VLJQLILFDQWO\ GLVUXSW WDFWLFDO DQG RSHUDWLRQDO HIIHFWV E\ GHJUDGLQJ PRELOLW\
LQFUHDVLQJWUDQVLWWLPHVDQGGHVWUR\LQJFULWLFDO&ODVV,VWRFNVRIIRRGDQGZDWHU

%LRORJLFDO:HDSRQVLQWKH-XQJOH
 7KH8QLWHG6WDWHVLVDVLJQDWRU\WRWKH%LRORJLFDODQG7R[LQ:HDSRQV&RQYHQWLRQDOVRNQRZQDV
%LRORJLFDO:HDSRQV&RQYHQWLRQ DQGUHQRXQFHVWKHGHYHORSPHQWDQGXVHRIELRORJLFDOZHDSRQVKRZHYHU
PDQ\SRWHQWLDOWKUHDWVFRQWLQXHWRPDLQWDLQRUGHYHORSELRORJLFDOZHDSRQV
 $ biological agentLVDPLFURRUJDQLVPRUDWR[LQGHULYHGIURPLWWKDWFDXVHVGLVHDVHLQSHUVRQQHO
SODQWVRUDQLPDOVRUFDXVHVWKHGHWHULRUDWLRQRIPDWHULHO-3%LRORJLFDODJHQWVDUHFODVVLILHGDVHLWKHU
SDWKRJHQV RU WR[LQV 3DWKRJHQV DUH GLVHDVHSURGXFLQJ PLFURRUJDQLVPV EDFWHULD YLUXVHV DQG IXQJL WKDW
GLUHFWO\ DWWDFN KXPDQ SODQW RU DQLPDO WLVVXH DQG ELRORJLFDO SURFHVVHV 7R[LQV DUH SRLVRQRXV VXEVWDQFHV
QDWXUDOO\SURGXFHGE\EDFWHULDSODQWVIXQJLVQDNHVLQVHFWVDQGRWKHUOLYLQJRUJDQLVPVDQGPD\EHSURGXFHG
V\QWKHWLFDOO\
 'HSHQGLQJ XSRQ WKH DJHQW¶V LQFXEDWLRQ SHULRG ELRORJLFDO ZHDSRQV FDQ SURGXFH OHWKDO HIIHFWV LQ
DQ\ZKHUHIURPGD\VIURPWKHWLPHRIH[SRVXUH%HFDXVHWKH\DUHOLYHDJHQWVELRORJLFDOZHDSRQVDUH
PRUHGLIILFXOWWRHPSOR\YLDFRQYHQWLRQDOERPEVDUWLOOHU\DQGH[SORVLYHVDVWKHKLJKKHDWJHQHUDWHGE\WKH
EODVWKDVWKHSRWHQWLDOWRUHQGHUWKHELRORJLFDODJHQWLQHIIHFWLYH/LYHELRORJLFDODJHQWVDUHRIWHQGLVSHUVHGE\
QRQFRQYHQWLRQDOPHWKRGVVXFKDVVSUD\LQJGHOLEHUDWHFRQWDPLQDWLRQDQGVDERWDJHDQGKXPDQDJHQWV7KH
PRVWHIIHFWLYHZLQGVSHHGVIRUGLVSHUVLQJELRORJLFDODJHQWVDUHIURP±NQRWV6WDEOHMXQJOHDLUFRQGLWLRQV
QLJKW RU HDUO\ PRUQLQJ SURYLGH RSWLPDO FRQGLWLRQV IRU DJHQW FRQFHQWUDWLRQ DQG DUHD FRYHUDJH 8QVWDEOH
MXQJOH DLU FRQGLWLRQV ODWH PRUQLQJ DQG DIWHUQRRQ SURPRWH DWPRVSKHULF PL[LQJ DQG ORZHU DJHQW
FRQFHQWUDWLRQWKHUHE\UHGXFLQJHIIHFWLYHWDUJHWFRYHUDJH

6HSWHPEHU $730&73& 

&KDSWHU

 )RUFH KHDOWK SURWHFWLRQ PHDVXUHV SURYLGH RSWLPDO SURWHFWLRQ DJDLQVW ELRORJLFDO ZHDSRQV 7URRSV
UHJXODUO\ VHFXUHDQGWHVW IRRGDQG ZDWHUVRXUFHVWRSUHYHQWDQGGHWHFWFRQWDPLQDWLRQ8QLWVHQIRUFHILHOG
VDQLWDWLRQ DQGSHUVRQDO K\JLHQH PHDVXUHVWR PLWLJDWH WKHLPSDFWRIERWK QDWXUDOO\RFFXUULQJGLVHDVHVDQG
ELRORJLFDOZHDSRQV&RPPDQGHUVHQVXUHWKDWDOO6ROGLHUV0DULQHVDUHFXUUHQWRQERWKVWDQGDUGYDFFLQDWLRQV
DQGUHJLRQDORUHQYLURQPHQWVSHFLILFLPPXQL]DWLRQV
 7R[LQVGRQRWUHTXLUHDQLQFXEDWLRQSHULRGFDQFDXVHHIIHFWVLPPHGLDWHO\ XSRQFRQWDFWDQGDUH
PRUHVWDEOHWKDQOLYHELRORJLFDODJHQWV7KH\FDQEHGLVVHPLQDWHGDVDOLTXLGYDSRURUSRZGHUDQGGHOLYHUHG
E\DHURVROJHQHUDWRUVDUWLOOHU\URFNHWVRUERPEV%HFDXVHRIWKHLULPPHGLDWHHIIHFWVWR[LQVDUHHDVLHUWR
GHWHFWWKDQRWKHUELRORJLFDODJHQWV
 7KHMXQJOHHQYLURQPHQWLVFRQGXFLYHWRWKHXVHRIELRORJLFDODJHQWV%LRORJLFDODJHQWVRIWHQWROHUDWH
KLJKKXPLGLW\DQGZDUPWHPSHUDWXUHVZHOODQGFDQSHUVLVWLQDUHDVZLWKOLPLWHGZLQGIORZ$VZLWKFKHPLFDO
DJHQWVGRZQZLQGVSUD\KD]DUGVDUHUHGXFHGE\WKHODFNRIZLQGLQWKHMXQJOH

1XFOHDU:HDSRQVLQWKH-XQJOH
 0DQ\ SRWHQWLDO DGYHUVDULHV PDLQWDLQ QXFOHDU ZHDSRQV ZKLOH DGGLWLRQDO VWDWH DQG QRQVWDWH DFWRUV
VWULYHWRREWDLQWKHP1XFOHDUZHDSRQVFDQEHGHOLYHUHGE\PLVVLOHVRUERPEVDQGFDQEHH[SORGHGLQWKHDLU
RQ WKH JURXQG RU EHORZ WKH JURXQG 'HSHQGLQJ XSRQ WKH UDGLDWLRQ GRVDJH UHFHLYHG HIIHFWV FDQ EH IHOW
LPPHGLDWHO\RUGHOD\HGIRUGD\V
 1XFOHDUZHDSRQVKDYHDPDMRUEHDULQJRQWDFWLFVEHFDXVHRIWKHLUDELOLW\WRPDNHDUHDVLPSDVVDEOH
RUXQLQKDELWDEOHWKURXJKUDGLRDFWLYHFRQWDPLQDWLRQ7KLVPDNHVWKHPLGHDOIRUGHQ\LQJNH\WHUUDLQEORFNLQJ
PDQHXYHUFRUULGRUVDQGLVRODWLQJIULHQGO\ IRUFHV7KHHQHP\FDQHPSOR\QXFOHDU ZHDSRQVLQ WKHMXQJOH
ZKLFKQDWXUDOO\FRQVWULFWVPDQHXYHUDQGFRPSDUWPHQWDOL]HVIRUFHVWRIXUWKHUFRPSOLFDWHPRELOLW\1XFOHDU
ZHDSRQVFDQGHVWUR\ODUJHFRQFHQWUDWLRQVRIWURRSVDQGHTXLSPHQWRUPDNHFULWLFDOLQIUDVWUXFWXUHVXFKDV
SRUWVFRPSOHWHO\XQXVDEOH7KH\PD\DOVREHXVHGWRGHVWUR\RUEORFNUHLQIRUFLQJIRUPDWLRQVDQGLVRODWH
IRUZDUGSRVLWLRQHGIRUFHV%HFDXVHRIWKHLULPPHQVHGHVWUXFWLYHSRZHUQXFOHDUZHDSRQVFDQIDFLOLWDWHWKH
GHIHDWRIDODUJHIRUFHE\DUHODWLYHO\VPDOOHURUOHVVVRSKLVWLFDWHGHQHP\
 7KH LQLWLDO HIIHFWV RI QXFOHDU EODVWV DUH QRW VLJQLILFDQWO\ UHGXFHG E\ MXQJOH IROLDJH EXW PD\ EH
PLWLJDWHGE\WKHVKDUSFKDQJHVLQUHOLHIIRXQGLQPRXQWDLQRXVMXQJOHDUHDV7KHGHQVHMXQJOHFDQRS\PD\
SURYLGHVRPHSURWHFWLRQDJDLQVWWKHUPDOUDGLDWLRQDQGIDOORXWKRZHYHUWUHHVFORVHUWRWKHEODVWZLOOEHFRPH
VRXUFHVRIVKUDSQHODQGIO\LQJGHEULV7KHODFNRIKLJKZLQGVDQGVWLOOSRFNHWVRIDLUIRXQGLQMXQJOHYDOOH\V
PD\FRQWDLQUDGLRDFWLYHIDOORXWLQFHUWDLQDUHDV5DGLRDFWLYHGHEULVDQGIDOORXWPD\UHVWRQWKHWKLFNMXQJOH
FDQRS\KRZHYHUVXEVHTXHQWUDLQZLOOZDVKWKHVHSDUWLFOHVWRWKHJURXQGDQGFRQFHQWUDWHWKHPLQORZO\LQJ
DUHDV7KHVHDUHDVKDYHWKHSRWHQWLDOWRFRQWDLQKLJKOHYHOVRIUDGLDWLRQ
 'HWRQDWHGQXFOHDUZHDSRQVUHOHDVHHQHUJ\WKDWDIIHFWVWURRSVDQGHTXLSPHQWLQWKUHHIRUPVEODVW
QXFOHDUUDGLDWLRQDQGWKHUPDOUDGLDWLRQKHDWDQGOLJKW

Blast
 1XFOHDU ZHDSRQV DUH RIWHQ GHWRQDWHG DV DLU EXUVW ZHDSRQV WR HQKDQFH WKH ZHDSRQ¶V GHVWUXFWLYH
HIIHFWV1XFOHDUEODVWVUDLVHFRQVLGHUDEOHDPRXQWVRIFRQWDPLQDWHGGHEULVWKDWLQKLELWREVHUYDWLRQDQGPD\
SUHYHQWPDQHXYHUORQJDIWHUWKHEODVWKDVVXEVLGHG7KHUDGLXVRIGDPDJHLVQRUPDOO\VPDOOHULQMXQJOHWHUUDLQ
DV PRXQWDLQV DQG YDOOH\V FRPSDUWPHQWDOL]H WKH HIIHFWV 6ROGLHUV0DULQHV RFFXS\LQJ LPSURYHG ILJKWLQJ
SRVLWLRQVILJKWLQJYHKLFOHVDQGSURWHFWHGVWUXFWXUHVFDQZLWKVWDQGQXFOHDUEODVWVEHWWHUWKDQ6ROGLHUV0DULQHV
LQH[SRVHGDUHDV

Nuclear Radiation
 ,PPHGLDWHQXFOHDUUDGLDWLRQLVDIXQFWLRQRIZHDSRQ\LHOG:KHQGHWRQDWHGDWORZDOWLWXGHRUJURXQG
OHYHOUHVLGXDOUDGLDWLRQLVKLJKLQWKHLPPHGLDWHDUHD7KHDPRXQWRIUHVLGXDOUDGLDWLRQLVDOVRDIIHFWHGE\
WKHWLPHRIGD\DQGWKHZLQG,QWKHODWHDIWHUQRRQUHVLGXDOUDGLDWLRQPD\GULIWLQDQLUUHJXODUSDWWHUQDQG
GLUHFWLRQGXHWRMXQJOHDLULQVWDELOLW\&RQVWDQWUDGLDWLRQPRQLWRULQJDQGUHFRQQDLVVDQFHDUHYLWDOWRSURWHFW
WURRSVHVSHFLDOO\IURPFRQWDPLQDWHGZDWHUUXQRII

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

Thermal Radiation
 7HUUDLQPDVNLQJDQGGHQVHYHJHWDWLRQLQWKHMXQJOHUHGXFHVWKHHIIHFWLYHUDQJHRIWKHUPDOUDGLDWLRQ
KHDWDQGOLJKW7KHGDQJHURIEOLQGLQJRUEXUQLQJWURRSVZLWKDQXFOHDUGHWRQDWLRQGHFUHDVHVLQDMXQJOH

%DWWOHILHOG2EVFXUDWLRQ
 ObscurationLVWKHHPSOR\PHQWRIPDWHULDOVLQWRWKHHQYLURQPHQWWKDWGHJUDGHRSWLFDODQGRUHOHFWUR
RSWLFDOFDSDELOLWLHVZLWKLQVHOHFWSRUWLRQVRIWKHHOHFWURPDJQHWLFVSHFWUXPLQRUGHUWRGHQ\DFTXLVLWLRQE\RU
GHFHLYHDQHQHP\RUDGYHUVDU\$73ObscurationLVWKHHIIHFWVRIZHDWKHUEDWWOHILHOGGXVWDQG
GHEULVRUWKHXVHRIVPRNHPXQLWLRQVWRKDPSHUREVHUYDWLRQDQGWDUJHWDFTXLVLWLRQFDSDELOLW\RUWRFRQFHDO
DFWLYLWLHV RU PRYHPHQW 0&53  8QLWV XVH REVFXUDQWV WR SURWHFW IULHQGO\ IRUFHV GXULQJ WDFWLFDO
RSHUDWLRQV8QLWVDOVRPD\HPSOR\REVFXUDQWVWRVXSSRUWWDFWLFDOGHFHSWLRQRSHUDWLRQVPDUNWDUJHWVIRUOHWKDO
ILUHVPDUNIULHQGO\ORFDWLRQVDQGSRWHQWLDOO\VXSSRUW(:RSHUDWLRQV2EVFXUDWLRQLVDFULWLFDOFRPSRQHQWRI
HQDEOLQJRSHUDWLRQVOLNHEUHDFKHVDQGJDSFURVVLQJV2EVFXUDQWVGLVSHUVHGRQHQHP\IRUFHVDWQLJKWLQWHUIHUH
ZLWKWKHHIIHFWLYHIXQFWLRQLQJRI19'DQG,5RSWLFV
 2EVFXUDQWVFDQEHYHU\HIIHFWLYHLQKXPLGMXQJOHVZLWKGHQVHYHJHWDWLRQDQGORZZLQGV2EVFXUDQWV
ZRUNEHVWZKHQZLQGFRQGLWLRQVDUHXQGHUILYHNQRWVDLULVVWDEOHKXPLGLW\LVKLJKPLVWRUIRJLVSUHVHQW
DQGFORXGFRYHULVRYHUFDVWZLWKD ORZFHLOLQJ2EVFXUDQWVFDQDEVRUEPRLVWXUHIURPWKHDLUDQGEHFRPH
PXFKPRUHSHUVLVWHQWDQGHIIHFWLYHLQKXPLGHQYLURQPHQWV,QMXQJOHVREVFXUDWLRQKDVDWHQGHQF\WREHPRUH
HYHQO\GLVSHUVHGDQGWRSHUVLVWORQJHUWKDQRYHU PRUH RSHQWHUUDLQ/RZ ZLQGVSHHGVXQGHUWKHFDQRSLHV
VSUHDGREVFXUDQWVVORZO\LQDGRZQZLQGDQGGRZQVORSHGLUHFWLRQ2EVFXUDQWFORXGVWHQGWRIROORZJXOOLHV
DQGVWUHDPEHGV8SVORSHZLQGVFDQKDOWRUGLYHUWWKLVIORZ
 7KHHIIHFWLYHQHVVRISODWIRUPEDVHGREVFXUDWLRQVXFKDVOLJKWYHKLFOHREVFXUDWLRQVPRNHV\VWHPLV
OLPLWHGLQMXQJOHVGXHWRUHGXFHGPRELOLW\DQGWKHLQDELOLW\IRUREVFXUDQWVWREHGHSOR\HGDVDFXUWDLQRU
VFUHHQ-XQJOHVZLWKWKLFNFDQRSLHVUHGXFHWKHHIIHFWLYHQHVVRIDUWLOOHU\DQGPRUWDUGHOLYHUHGREVFXUDWLRQ
7KLFNFDQRSLHVLPSDFWWKHWUDMHFWRU\RIPXQLWLRQVDQGUHGXFHOLQHVRIVLJKWWKHUHE\OLPLWLQJWKHDELOLW\IRU
6ROGLHUV0DULQHVWRXVHREVFXUDQWVWR PDUNWDUJHWVRULGHQWLI\ IULHQGO\SRVLWLRQVDQGORFDWLRQV+RZHYHU
XQLWVFDQHPSOR\DUWLOOHU\DQGPRUWDUGHOLYHUHGREVFXUDQWVWRSURYLGHHIIHFWLYHSURWHFWLRQREVFXUDWLRQIRU
WURRSVRSHUDWLQJLQWKHMXQJOH

Note.'HVSLWHWKHXVHRIREVFXUDWLRQWRSURWHFWIULHQGO\IRUFHVRUGHFHLYHWKHHQHP\SODWIRUP
EDVHG RU LQGLYLGXDO REVFXUDWLRQ LQKHUHQWO\ UHYHDOV WKH SUHVHQFH RI IULHQGO\ IRUFHV DQG FDQ
FRPSURPLVHWKHHOHPHQWRIVXUSULVH

0LVVLRQ2ULHQWHG3URWHFWLYH3RVWXUH
 7KHWKUHDWRI&%51ZHDSRQVXVHUHTXLUHVFRPPDQGHUVWRFRQVLGHUWKHPLVVLRQRULHQWHGSURWHFWLYH
SRVWXUH0233RIWKHLUIRUFHV0233LQFOXGHVWKHXVHRISURWHFWLYHPDVNVDQGFORWKLQJDVZHOODVYHKLFOH
FRQILJXUDWLRQVDQGRSHUDWLRQVZKLFKFDQLPSDFWWKHHIIHFWLYHQHVVDQGSHUIRUPDQFHRIWURRSV7KHKLJKHUWKH
0233OHYHOWKHKLJKHUWKHLPSDFWRQ6ROGLHUV0DULQHV
 $FFRUGLQJ WR 0(777&0(777 WKH FRPPDQGHU GHFLGHV ZKLFK 0233 OHYHO WR DVVXPH +HDW
IDWLJXHDQGVWUHVVDOOLQFUHDVHDV0233OHYHOVLQFUHDVHDQGFDQDIIHFWWKHSHUIRUPDQFHRI6ROGLHUV0DULQHV
7KLV LV HVSHFLDOO\ WUXH ZLWK KLJK MXQJOH WHPSHUDWXUHV DQG KXPLGLW\ :HOOWUDLQHG DQG DFFOLPDWHG
6ROGLHUV0DULQHVWROHUDWHZHDULQJSURWHFWLYHJHDUEHWWHUWKDQWKRVHZKRDUHQRWDVZHOOWUDLQHGRUDFFOLPDWHG
7URRSVLQSURWHFWLYHJHDUILUHZHDSRQVOHVVDFFXUDWHO\PRYHPRUHVORZO\DQGPXVWUHVWPRUHRIWHQ-XQJOH
KHDWIDWLJXHDQGVWUHVVFDXVHGE\ZHDULQJ&%51SURWHFWLYHHTXLSPHQWVORZVPRYHPHQWDQGPDNHVWDVNV
WDNHORQJHUWRFRPSOHWH&KDQJLQJWKH0233OHYHOGXULQJRSHUDWLRQVUHTXLUHV6ROGLHUV0DULQHVWRVWRSWKHLU
DFWLRQVDQGDGMXVWWKHLUHTXLSPHQWDSSURSULDWHO\
 7KH VWUHVV IURP VWUHQXRXV DFWLYLW\ ZKLOH ZHDULQJ SURWHFWLYH JHDU LV FRPSRXQGHG E\ KHDW DQG
KXPLGLW\,ISRVVLEOHWURRSVFRPSOHWHKDUGZRUNDWQLJKWRUGXULQJWKHFRROHVWSDUWRIWKHGD\,QWKHMXQJOH
OHDGHUVFDQH[SHFW KHDWLQMXULHVWRRFFXU WR6ROGLHUV0DULQHVGUHVVHGLQ0233OHYHO ZLWKLQPLQXWHV
ZKLOHWKH\SHUIRUPKHDY\ZRUNLQGHJUHH)DKUHQKHLW&HOVLXV WHPSHUDWXUHV/HDGHUVQHHGWRSURYLGH
ZRUNUHVWSHULRGVWRUHGXFHWKHFKDQFHVRIKHDWLQMXULHV:KHQ 6ROGLHUV0DULQHVZHDUSURWHFWLYHFORWKLQJ

6HSWHPEHU $730&73& 

&KDSWHU

VWDIIVDGG DWOHDVWGHJUHHV)DKUHQKHLW &HOVLXV WRWKH:*%7LQGH[IRUOLJKW ZRUNDQGGHJUHHV

)DKUHQKHLW&HOVLXV IRUPRGHUDWHWRKDUGZRUN%HFDXVHRIKLJKHUERG\WHPSHUDWXUHVWURRSVLQ0233
HTXLSPHQWSHUVSLUHPRUHWKDQXVXDODQGKDYHLQFUHDVHGZDWHUUHTXLUHPHQWV6HH7DEOH RQSDJH IRU
ZRUNUHVWF\FOHVDQGZDWHUFRQVXPSWLRQJXLGHOLQHV

'HFRQWDPLQDWLRQ
 Decontamination LV WKH SURFHVV RI PDNLQJ DQ\ SHUVRQ REMHFW RU DUHD VDIH E\ GHVWUR\LQJ
QHXWUDOL]LQJ PDNLQJ KDUPOHVV RU DEVRUELQJ DQG UHPRYLQJ FKHPLFDO RU ELRORJLFDO DJHQWV RU E\ UHPRYLQJ
UDGLRDFWLYH PDWHULDO FOLQJLQJ WR RU DURXQG LW -3  'HFRQWDPLQDWLRQ RSHUDWLRQV LQ WKH MXQJOH KDYH
FRPSOLFDWHG FKDOOHQJHV DVVRFLDWHG ZLWK WUDQVSRUWLQJ WKH UHTXLUHG FKHPLFDOV DQG HTXLSPHQW RYHU FRPSOH[
WHUUDLQODFNLQJGHYHORSHGLQIUDVWUXFWXUH$OWKRXJKGHFRQWDPLQDWLRQVKRXOGRFFXUDVIDUIRUZDUGDVSRVVLEOH
PRYLQJWKHUHTXLUHGHTXLSPHQWDQGVXSSOLHVPD\FKDOOHQJHWKHORJLVWLFDOV\VWHP
 :KHQWKHORJLVWLFDOVLWXDWLRQ SUHYHQWVWKHWUDQVSRUWDWLRQRIQHFHVVDU\HTXLSPHQWDQGFKHPLFDOVWR
WKH SRLQW RI QHHG WURRSV FDQ XVH MXQJOH VRLO PXG DQG ORFDO ZDWHU VRXUFHV WR FRQGXFW LPPHGLDWH
GHFRQWDPLQDWLRQ RSHUDWLRQV :KHQ GHFRQWDPLQDWLQJ YHKLFOHV DQG HTXLSPHQW LQ WKLV PDQQHU
6ROGLHUV0DULQHV DSSO\ VRLO RU PXG RQ WKH H[WHULRU RI WKH HTXLSPHQW DQG WKHQ UHPRYH LW E\ EUXVKLQJ RU
VZHHSLQJ7KHQWKH\ULQVHHTXLSPHQWZLWKUXQQLQJZDWHU7KHVRLO¶VDELOLW\WRDEVRUEFRQWDPLQDWLQJDJHQWV
GHSHQGV RQ LWV PRLVWXUH FRQWHQW VR KHDYLO\ VDWXUDWHG VRLOV PD\ QRW EH VXLWDEOH IRU GHFRQWDPLQDWLRQ
RSHUDWLRQV7URRSVQHHGWRIROORZEUDFNLVKRUVDOWZDWHUGHFRQWDPLQDWLRQZLWKDIUHVKZDWHUULQVHWRPLQLPL]H
FRUURVLRQ(QJLQHHUVFRQGXFWDFKHPLFDODJHQWGHWHFWLRQWRHQVXUHWKHGHFRQWDPLQDWLRQDGHTXDWHO\UHPRYHG
WKH DJHQW )RU PRUH LQIRUPDWLRQ RQ &%51 SDVVLYH GHIHQVH UHIHU WR $730&:3(
1773$)773

6859,9$%,/,7<$1'7+((/(&7520$*1(7,&63(&7580
 'HWHFWLRQULVNVGHVWUXFWLRQLQWKHMXQJOHVRXQLWVDUHLQFUHDVLQJO\YXOQHUDEOHWRGHWHFWLRQE\WKHLU
HOHFWURPDJQHWLFVLJQDWXUH6LJQLILFDQWDGYDQFHVLQFRPPDQGFRQWURODQGFRPPXQLFDWLRQVWHFKQRORJ\KDYH
JUHDWO\LQFUHDVHGWKHHOHFWURPDJQHWLFVLJQDWXUHRI$UP\0DULQHIRUFHV6LPLODUO\WKHH[SORVLYHJURZWKRI
DIIRUGDEOH8$6DQGLQFUHDVLQJO\VRSKLVWLFDWHGVHQVRUVKDYHLQFUHDVHGWKHHQHP\¶VDELOLW\WRGHWHFWIULHQGO\
IRUFHVERWKYLVXDOO\DQGWKURXJKWKHLUHOHFWURPDJQHWLFVLJQDWXUH7RHQVXUHVXUYLYDELOLW\FRPPDQGHUVUHGXFH
RU PDVN WKH YLVXDO DQG HOHFWURPDJQHWLF VLJQDWXUH RI WKHLU IRUFHV $UP\0DULQH &RUSV IRUFHV WUDLQ WR
SURILFLHQWO\ XVH DFWLYH DQG SDVVLYH SURWHFWLRQ PHDVXUHV²VXFK DV FDPRXIODJH OLJKW GLVFLSOLQH UDSLG
UHSRVLWLRQLQJDQGVXUYLYDELOLW\SRVLWLRQV²WRUHGXFHRUPLWLJDWHHIIHFWVRIWKHLUHOHFWURPDJQHWLFVLJQDWXUH
 +HDGTXDUWHUVDQGFRPPDQGSRVWVRIWHQSURGXFHH[WUHPHO\ODUJHHOHFWURPDJQHWLFVLJQDWXUHVDQGDUH
FRQVLGHUHG KLJKYDOXH WDUJHWV WR HQHP\ IRUFHV 7R HQVXUH VXUYLYDELOLW\ FRPPDQGHUV WDNH VSHFLDO FDUH WR
UHGXFHRUPDVNWKHYLVXDODQGHOHFWURPDJQHWLFVLJQDWXUHRIWKHLUKHDGTXDUWHUV0HDVXUHVWRUHGXFHRUPLWLJDWH
WKH HOHFWURPDJQHWLF VLJQDWXUH RI KHDGTXDUWHUV DQG FRPPDQG SRVWV LQFOXGH GLVSHUVLQJ FRPPDQG SRVWV
FUHDWLQJ VXUYLYDELOLW\ SRVLWLRQV XVLQJ ILEHURSWLF FDEOH DQG ZLUHEDVHG FRPPXQLFDWLRQV FDPRXIODJLQJ
FULWLFDOVLWHVPDVNLQJDQWHQQDVZLWKWHUUDLQDQGUHPRWHO\ORFDWLQJWKHKHDGTXDUWHUV¶DVVRFLDWHGDQWHQQDVDQG
VDWHOOLWHGLVKHV

6(&85,7<2)6833/<5287(6
 7KHUHODWLYHVFDUFLW\RIDOOZHDWKHUDQGLPSURYHGURDGVLQWKHMXQJOHPD\LQFUHDVHWKHOHQJWKDQG
GLIILFXOW\RIVHFXULQJJURXQGVXSSO\URXWHV(QHP\DPEXVKHVDQGPLQHVFRQVWDQWO\WKUHDWHQJURXQGVXSSO\
URXWHVZKHUHIHZDOWHUQDWLYHURXWHVDUHDYDLODEOHDQGFRQYR\RSHUDWLRQVDUHRIWHQSUHGLFWDEOH
 6XSSO\FRQYR\VPXVWGHYHORSDQGLPSOHPHQW773WRPLWLJDWHDPEXVKHVDLUDQGDUWLOOHU\DWWDFNV
&RQYR\VPDLQWDLQLQWHUYDOVEHWZHHQYHKLFOHVWROLPLWWKHHIIHFWLYHQHVVRIHQHP\DWWDFNV+RZHYHUWKHGHQVH
YHJHWDWLRQDQGOLPLWHGYLVLELOLW\RIWKHMXQJOHRIWHQUHTXLUHFORVHULQWHUYDOVEHWZHHQYHKLFOHVWKDQFRQYR\V
RSHUDWLQJLQRSHQRUXQUHVWULFWHGWHUUDLQ(IIHFWLYHLQWHUYDOVDUHVPDOOHQRXJKWRIDFLOLWDWHPXWXDOVXSSRUWEXW
ODUJH HQRXJKWR QHJDWH WKHHIIHFWLYHQHVVRIWKHHQHP\¶VODUJHVWFDVXDOW\SURGXFLQJ ZHDSRQ'XULQJ KDOWV
FRQYR\VDVVXPHIRUPDWLRQVWREHWWHUGHIHQGDJDLQVWHQHP\DWWDFN7KHKHUULQJERQHIRUPDWLRQZRUNVDVDQ
HIIHFWLYHGHIHQVLYHSRVWXUHGXULQJWHPSRUDU\KDOWVLQFHUWDLQWHUUDLQ8OWLPDWHO\XQLWVPD\UHTXLUHVHFXULW\
IRUFHVVXFKDVPLOLWDU\SROLFHWRSURWHFWFRQYR\VDQGVHFXUHFULWLFDO/2&V

 $730&73& 6HSWHPEHU

 &RPEDW3RZHULQ-XQJOH5HJLRQV

 5RXWHVLJQLQJHQKDQFHVVHFXULW\E\DLGLQJQDYLJDWLRQDQGSUHYHQWLQJFRQYR\VIURPEHFRPLQJORVW
RUOHDYLQJWKH065RU$65$ORQJ ZLWKXVLQJFOHDUQDPLQJFRQYHQWLRQV WURRSVFOHDUO\PDUN 065VDQG
$65VIRUDOOYLVLELOLW\FRQGLWLRQV0LOLWDU\SROLFHDUHWUDLQHGDQGHTXLSSHGWRFRQGXFWURXWHVLJQLQJDQGFDQ
DOVRSRVLWLRQWKHPVHOYHVDORQJWKH 065DWFULWLFDOMXQFWXUHVLQWHUVHFWLRQVRUKROGLQJDUHDVWRKHOSJXLGH
WUDIILF
 &RPEDW HQJLQHHUV RU URXWH FOHDUDQFH FRPSDQLHV DUH WUDLQHG DQG HTXLSSHG WR LGHQWLI\ DQG UHGXFH
H[SORVLYHKD]DUGVDQGREVWDFOHVDORQJURXWHV(QJLQHHUVFOHDURUUHGXFHREVWDFOHVUHSDLUEODVWKROHVFUDWHUV
GDPDJHG FXOYHUWV EULGJHV DQG IRUG VLWHV DQG UHPRYH YHJHWDWLRQ IURP WKH URXWH¶V VKRXOGHUV +RUL]RQWDO
HQJLQHHUVPD\EHUHTXLUHGWRFRQVWUXFWDQGPDLQWDLQ065VDQG$65VWKURXJKRXWWKH$2
 0LOLWDU\SROLFHKDVVSHFLDOL]HGWUDLQLQJDQGHTXLSPHQWWRFRQGXFWFRQYR\VHFXULW\DQGURXWHVHFXULW\
RSHUDWLRQV7KH\SDWURODQGFOHDUURXWHVDQGDUHDVDVQHHGHGDFFRUGLQJWRSULRULW\RIHIIRUWVUHVRXUFHVDQG
WLPHDYDLODEOH
 $OWKRXJK ODERU DQG UHVRXUFH LQWHQVLYH FOHDULQJ YHJHWDWLRQ IURP WKH URXWH¶V VKRXOGHUV FDQ KHOS
SUHYHQWDPEXVKHVE\GHQ\LQJWKHHQHP\WKHUHTXLVLWHFRQFHDOPHQW&OHDULQJYHJHWDWLRQDOVRPDNHVLWPRUH
GLIILFXOW IRU WKH HQHP\ WR HPSODFH PLQHV RU LPSURYLVHG H[SORVLYH GHYLFHV ,('V ZKLOH VLPXOWDQHRXVO\
IDFLOLWDWLQJIULHQGO\DHULDOREVHUYDWLRQDQGDLUPRELOHRSHUDWLRQVDORQJWKHURDG
 0DQQHG DQG XQPDQQHG DLUFUDIW LQFUHDVH WKH VHFXULW\ RI VXSSO\ URXWHV E\ FRQGXFWLQJ DHULDO
UHFRQQDLVVDQFHDQGVXUYHLOODQFHPLVVLRQVHLWKHULQGHGLFDWHGVXSSRUWRUZKLOHWUDQVLWLQJWKH$2(OHFWURQLF
VHQVRUVRQWKHJURXQGDQGLQWKHDLULQFOXGLQJFRKHUHQWFKDQJHGHWHFWLRQFDQGHWHFWHQHP\PRYHPHQWDORQJ
WKHURXWH
 %ULGJHVDUHYXOQHUDEOHSRLQWVLQDQ\VXSSO\URXWHDQGVKRXOGEHSURWHFWHG8QLWVPD\QHHGDVWDWLF
VHFXULW\SRVWWRVHFXUHWKHEULGJHDJDLQVWDWWDFNE\JXHUULOODVRULQILOWUDWRUV6XFKSRVWVLQUHPRWHDUHDVZLOO
EHODUJHUWKDQWKRVHFORVHUWRVXSSRUWLQJIRUFHV7KHKLJKHUKHDGTXDUWHUVGHYHORSVSODQVDQGDOORFDWHVIRUFHV
WRVXSSRUWVHFXULW\SRVWVDQGFKHFNSRLQWVLQWKHHYHQWRIHQHP\DWWDFN7KHWDFWLFDOFRPEDWIRUFHPD\EH
GHVLJQDWHGDVWKHUHVSRQVHIRUFHIRUHQHP\DWWDFNVRQVHFXULW\SRVWVDQGFKHFNSRLQWV7KHtactical combat
forceLVDUDSLGO\GHSOR\DEOHDLUJURXQGPRELOHFRPEDWXQLWZLWKDSSURSULDWHFRPEDWVXSSRUWDQGFRPEDW
VHUYLFH VXSSRUW DVVHWV DVVLJQHG WR DQG FDSDEOH RI GHIHDWLQJ /HYHO ,,, WKUHDWV LQFOXGLQJ FRPELQHG DUPV
-3

6HSWHPEHU $730&73& 

7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
 &KDSWHU
-XQJOH2IIHQVLYH2SHUDWLRQV

7KLVFKDSWHURXWOLQHVWKHSXUSRVHDQGFKDUDFWHULVWLFVRIMXQJOHRIIHQVLYHRSHUDWLRQV,W
UHYLHZV WKH YDULRXV RIIHQVLYH RSHUDWLRQV IRUPV RI PDQHXYHU DQG WKH LPSDFW WKH
HQYLURQPHQWKDVRQWKHVHDFWLRQV

2))(16,9(23(5$7,216
 2IIHQVLYH DFWLRQV DUH FRPEDW RSHUDWLRQV FRQGXFWHG WR GHIHDW DQG GHVWUR\ HQHP\ IRUFHV DQG VHL]H
WHUUDLQUHVRXUFHVDQGSRSXODWLRQFHQWHUV7KH\LPSRVHWKHFRPPDQGHU¶VZLOORQWKHHQHP\$FRPPDQGHU
PD\DOVRFRQGXFWRIIHQVLYHDFWLRQVWRGHSULYHWKHHQHP\RIUHVRXUFHVVHL]HGHFLVLYHWHUUDLQGHFHLYHRUGLYHUW
WKHHQHP\GHYHORSLQWHOOLJHQFHIL[DQHQHP\LQSRVLWLRQRUGLVUXSWDQHQHP\DWWDFN8QLWVFDQGHVWUR\WKH
HQHP\E\FRQFHQWUDWLQJIULHQGO\IRUFHVDWDZHDNSRLQWLQWKHHQHP\¶VGHIHQVHDQGGHVWUR\LQJHQHP\FRPEDW
XQLWVRUE\GULYLQJGHHSLQWRWKHHQHP\¶VUHDUWRGHVWUR\WKHLUVXVWDLQPHQWHOHPHQWVDQGFXWWKHHQHP\¶V
/2&V
 2IIHQVLYHRSHUDWLRQVLQWKHMXQJOHRULHQWRQWKHHQHP\QRWWKHWHUUDLQ:KHUHYHUXQLWVILQGWKHHQHP\
WKH\GHVWUR\RUGHIHDWLWLQWKDWORFDWLRQ,IXQLWVDOORZWKHHQHP\WRHVFDSHWKH\ZLOOKDYHWRILQGWKHHQHP\
DJDLQZKLFKUHTXLUHVDGGLWLRQDOUHVRXUFHVSHUVRQQHODQGULVN'XULQJMXQJOHRSHUDWLRQVDWWDFNLQJIRUFHV
FRQGXFWPRYHPHQWWRFRQWDFWVKDVW\RUGHOLEHUDWHDWWDFNVH[SORLWDWLRQVDQGSXUVXLWV:LWKLQDGLYLVLRQOHDG
HOHPHQWVRIIRUZDUGXQLWVFRQGXFWGHOLEHUDWHDWWDFNVRQWKHHQHP\¶VZHDNSRLQWRUIODQNWRRSHQDJDSIRU
IROORZDQGDVVXPHIRUFHVWRH[SORLWVXFFHVV/HDGXQLWVRIWKHH[SORLWLQJIRUFHFRQGXFWPRYHPHQWWRFRQWDFW
DQGKDVW\DWWDFNVWRRYHUFRPHSRFNHWVRIHQHP\UHVLVWDQFH
 (IIHFWLYH RIIHQVLYH RSHUDWLRQV UHTXLUH PRELOLW\ KRZHYHU WKH MXQJOH LV QRW FRQGXFLYH WR PRELOLW\
&RPPDQGHUVVHHNWKHFDSDELOLW\WRPRYHH[SORLWDQGSXUVXHDQHQHP\DFURVVDZLGHIURQW:KHQDWWDFNLQJ
FRPPDQGHUVFRQFHQWUDWHWKHHIIHFWVRIFRPEDWSRZHUDWVHOHFWHGORFDWLRQV7KLVPD\UHTXLUHDXQLWWRLPSURYH
RUFRQVWUXFWFRPEDWWUDLOVWKURXJKDUHDVZKHUHURXWHVGRQRWH[LVW7KHVXUSULVHDFKLHYHGE\DWWDFNLQJWKURXJK
DQ DUHD EHOLHYHG WR EH LPSDVVDEOH PD\ MXVWLI\ WKH HIIRUW H[SHQGHG LQ FRQVWUXFWLQJ WKHVH WUDLOV :KHQHYHU
SRVVLEOHIRUFHVE\SDVVH[LVWLQJREVWDFOHVDQGPLQHILHOGVLQVWHDGRIEUHDFKLQJWKHP-XQJOHHQYLURQPHQWVGR
QRW VXSSRUW YHKLFOH PRELOLW\ 0RXQWHG IRUFHV FRQGXFWLQJ RIIHQVLYH RSHUDWLRQV UHTXLUH H[WHQVLYH HQJLQHHU
UHVRXUFHVWRDFKLHYHOLPLWHGOHYHOVRIPRELOLW\WRVXSSRUWPRYHPHQWDQGPDQHXYHUPDQHXYHU
 6HYHUDOIDFWRUVUHTXLUHVSHFLDOFRQVLGHUDWLRQZKHQFRQGXFWLQJRIIHQVLYHRSHUDWLRQVLQWKHMXQJOH7KLFN
IROLDJHFKDOOHQJHVOHDGHUV¶DELOLW\WRFRQWUROWKHPRYHPHQWRI6ROGLHUV0DULQHVZKLOHDOVRPDNLQJLWPRUH
GLIILFXOW WR GHWHFW WKH HQHP\ &RQVHTXHQWO\ WDFWLFDO PRYHPHQW IRUPDWLRQV DUH RIWHQ FORVHU WKDQ LQ RSHQ
XQUHVWULFWHG WHUUDLQ 7KLFN IROLDJH DQG PRXQWDLQRXV WHUUDLQ PDNH LW PRUH GLIILFXOW WR REVHUYH DQG DGMXVW
LQGLUHFWILUH)LQDOO\WKHKHDWKXPLGLW\DQGODFNRI/2&VKLQGHUWKHPRPHQWXPRUVSHHGFKDUDFWHULVWLFRI
PRVWVXFFHVVIXORIIHQVLYHRSHUDWLRQV
 (QDEOLQJRSHUDWLRQVDUHNH\WRVXFFHVVIXORIIHQVLYHRSHUDWLRQV$QDWWDFNLQJIRUFHFRQGXFWVDJJUHVVLYH
UHFRQQDLVVDQFHWRJDLQDQGPDLQWDLQWKHLQLWLDWLYHE\LGHQWLI\LQJHQHP\REVWDFOHVXQLWVZHDNSRLQWVDQG
IODQNVZKLOHVLPXOWDQHRXVO\GHWHFWLQJWKUHDWVWRWKHLUIODQNVDQGVXVWDLQPHQWHOHPHQWV$PRYLQJIRUFHKDV
DGLVDGYDQWDJHLQWKHMXQJOHGXHWROLPLWHGREVHUYDWLRQUDQJHVDQGWKHKLJKHUFKDQFHRIPHHWLQJHQJDJHPHQWV
GLFWDWHGE\DVWDWLRQDU\IRUFHLQSUHSDUHGSRVLWLRQV7KHUHIRUHOHDGHUVPXVWSXVKUHFRQQDLVVDQFHXQLWVDVIDU
RXWIURPWKHPDLQERG\DVSRVVLEOHWRDOORZHDUO\ZDUQLQJDQGWRGHQ\WKHHQHP\WKHHOHPHQWRIVXUSULVH
 'XULQJRIIHQVLYHRSHUDWLRQVFRPPDQGHUVUHFRJQL]HWKDWVRPHRIIHQVLYHIXQGDPHQWDOVDFTXLUHDQHZ
VLJQLILFDQFH LQ WKH MXQJOH %HFDXVH JDWKHULQJ DFFXUDWH DQG WLPHO\ LQIRUPDWLRQ LV FKDOOHQJLQJ DJJUHVVLYH
UHFRQQDLVVDQFH LV FULWLFDO GXULQJ RIIHQVLYH RSHUDWLRQV LQ WKH MXQJOH $ XQLW DWWDFNLQJ ZLWKRXW WLPHO\
LQIRUPDWLRQRQWKHORFDWLRQRIWKHHQHP\PD\VXEMHFWLWVVXERUGLQDWHXQLWVWRHQHP\DPEXVKZLWKRXWEHLQJ

6HSWHPEHU $730&73& 

&KDSWHU

DEOHWRVXSSRUWWKHP,QVXFKDVLWXDWLRQWKHHQHP\PD\GHIHDWWKHVXERUGLQDWHXQLWVLQGHWDLO&RPPDQGHUV
ZLOOPRVWRIWHQHPSOR\WKHUHFRQQDLVVDQFHSXOOWHFKQLTXHLQMXQJOHRIIHQVLYHRSHUDWLRQVWRJDLQDQVZHUVWR
WKHLU FRPPDQGHU¶V FULWLFDO LQIRUPDWLRQ UHTXLUHPHQWV 5HFRQQDLVVDQFH SXOO GHWHUPLQHV URXWHV VXLWDEOH IRU
PDQHXYHUWKHHQHP\¶VVWUHQJWKVDQGZHDNQHVVHVDQGH[LVWLQJJDSVWKXVSXOOLQJWKHPDLQERG\WRZDUGDQG
DORQJ WKH SDWK RI OHDVW UHVLVWDQFH )RU PRUH GHWDLOHG LQIRUPDWLRQ RQ UHFRQQDLVVDQFH WHFKQLTXHV UHIHU WR
)0
 8VLQJZHDSRQVWRWKHLUIXOOHVWSRWHQWLDOLVNH\WRHIIHFWLYHMXQJOHRSHUDWLRQV3ULPDU\MXQJOHZHDSRQV
LQFOXGHLQIDQWU\VPDOODUPVVXSSRUWHGE\PHGLXPDQGOLJKWPDFKLQHJXQVDQGPPPRUWDUV,QDGGLWLRQWR
RUJDQLFZHDSRQVWKHJURXQGFRPPDQGHUPXVWFORVHO\FRRUGLQDWHWKHHPSOR\PHQWRI DYDLODEOHVXSSRUWLQJ
ZHDSRQV'HQVHIROLDJHIRXQGLQVRPHMXQJOHVPD\SUHYHQWKHDY\ZHDSRQVIURPPRYLQJGLUHFWO\ZLWKWKH
LQIDQWU\7XEHODXQFKHGRSWLFDOO\WUDFNHGZLUHJXLGHGPLVVLOHVDQG-DYHOLQVDUHRIOLPLWHGXVHLQPRVWMXQJOH
HQYLURQPHQWV7URRSVWKDWXVHWKHVHZHDSRQVPD\EHPRUHHIIHFWLYHDVVHFXULW\IRUFHVRUDVUHLQIRUFHPHQWV
IRUPDQHXYHUHOHPHQWV
 *LYHQWKHFKDOOHQJHVWRPRELOLW\DQGWKHGLVSHUVHGQDWXUHRIMXQJOHRSHUDWLRQVFRPPDQGHUVDQGVWDII
SD\FORVHDWWHQWLRQWRWKHDELOLW\IRUXQLWVWRVXSSRUWHDFKRWKHUGXULQJRIIHQVLYHMXQJOHRSHUDWLRQV:KHQ
GHYHORSLQJWKHFRQFHSWRIRSHUDWLRQVDQGVFKHPHRIPDQHXYHUFRPPDQGHUVDQGVWDIIXVHVXSSRUWLQJUDQJH
DQGVXSSRUWLQJGLVWDQFHWRGHWHUPLQHDIHDVLEOHFRQFHSWIRUPXWXDOVXSSRUWMutual supportLVWKDWVXSSRUW
ZKLFKXQLWVUHQGHUHDFKRWKHUDJDLQVWDQHQHP\EHFDXVHRIWKHLUDVVLJQHGWDVNVWKHLUSRVLWLRQUHODWLYHWRHDFK
RWKHU DQG WR WKH HQHP\ DQG WKHLU LQKHUHQW FDSDELOLWLHV -3  ,Q $UP\ GRFWULQH PXWXDO VXSSRUW LV D
SODQQLQJ FRQVLGHUDWLRQ UHODWHG WR IRUFH GLVSRVLWLRQ QRW D FRPPDQG UHODWLRQVKLS 0XWXDO VXSSRUW KDV WZR
DVSHFWV VXSSRUWLQJ UDQJH DQG VXSSRUWLQJ GLVWDQFH Supporting range LV WKH GLVWDQFH RQH XQLW PD\ EH
JHRJUDSKLFDOO\ VHSDUDWHG IURP D VHFRQG XQLW \HW UHPDLQ ZLWKLQ WKH PD[LPXP UDQJH RI WKH VHFRQG XQLW¶V
ZHDSRQVV\VWHPV$'3Supporting rangeLVWKHGLVWDQFHRQHXQLWPD\EHJHRJUDSKLFDOO\VHSDUDWHGIURP
DVHFRQGXQLW\HWUHPDLQZLWKLQWKHPD[LPXPUDQJHRIWKHVHFRQGXQLW¶VZHDSRQVV\VWHPV0&53
Supporting distanceLVWKHGLVWDQFHEHWZHHQWZRXQLWVWKDWFDQEHWUDYHOHGLQWLPHIRURQHWRFRPHWRWKHDLG
RIWKHRWKHUDQGSUHYHQWLWVGHIHDWE\DQHQHP\RUHQVXUHLWUHJDLQVFRQWURORIDFLYLOVLWXDWLRQ$'37KH
0DULQH&RUSVGHILQHVsupporting distanceDVWKHGLVWDQFHEHWZHHQWZRXQLWVWKDWFDQEHWUDYHOHGLQWLPHIRU
RQHWRFRPHWRWKHDLGRIWKHRWKHU0&53'XHWRWKHFRPSOH[LW\RIWKHWHUUDLQDQGFRYHUSURYLGHG
E\YHJHWDWLRQLQWKH MXQJOH PXWXDOVXSSRUWGRHVQRW PHDQWKDWDQ\RQH XQLW LVDOZD\VLQSRVLWLRQWR ILUH
DJDLQVWDQHQHP\WKUHDWHQLQJDQRWKHUXQLW8QLWVPXVWEHFDSDEOHRIPDQHXYHULQJLQVXSSRUWRIRQHDQRWKHU
ZLWKRXWGLVUXSWLQJWKHVFKHPHRIPDQHXYHU
 $GMDFHQWXQLWVPXVWEHDEOHWRVXSSRUWDQHQJDJHGHOHPHQWTXLFNO\7KHFRPPDQGHUPXVWFRQVLGHU
0(777&0(777LQGHWHUPLQLQJJHRJUDSKLFDOVHSDUDWLRQEHWZHHQVXERUGLQDWHXQLWV6WDIIVFDQH[SUHVV
WKH VHSDUDWLRQLQHLWKHUWLPH RUGLVWDQFHWRSURYLGHPXWXDOVXSSRUW 6FRXWVDQGFRQQHFWLQJSDWUROVVKRXOG
FRYHUJDSVEHWZHHQXQLWV
 $GGLWLRQDOFRQVLGHUDWLRQVIRUMXQJOHRIIHQVLYHRSHUDWLRQVDUH²
z 7KH IUDJPHQWDWLRQ RI WUHH EUDQFKHV DQG RYHUKHDG FRYHU HQKDQFH OHWKDO HIIHFWV RI DUWLOOHU\ DQG
PRUWDUILUH
z %HFDXVHRIFKDOOHQJHVWRQDYLJDWLRQDQGWKHUHGXFHGYLVLELOLW\EHWZHHQHOHPHQWVMXQJOHRIIHQVLYH
RSHUDWLRQVVKRXOGXVHSKDVHVZLWKLQWHUPHGLDWHREMHFWLYHVDWVKRUWUDQJHVWRHQVXUHFRKHVLRQ
z &RPPDQGHUVEXLOGIOH[LELOLW\LQWRWKHLURIIHQVLYHRSHUDWLRQSODQV3ODQVKDYHHQRXJKIOH[LELOLW\
WRVKLIWWKHPDLQHIIRUWTXLFNO\GXULQJWKHRSHUDWLRQRQFHWURRSVORFDWHWKHHQHP\DQGWKHGHIHQVLYH
GLVSRVLWLRQLVPDGHFOHDU
z 7URRSVPDLQWDLQWKHWHPSRRIRIIHQVLYHRSHUDWLRQVE\SODQQLQJIRUIROORZDQGVXSSRUWRUIROORZ
DQGDVVXPHIRUFHV
z 7URRSVLQFUHDVHVHFXULW\PHDVXUHVDWDOOOHYHOVWRHOLPLQDWHVXUSULVHDQGUHGXFHWKHULVNRIDPEXVK
z &RPPDQGHUV GHVLJQDWH VPDOO UHVHUYHV MXVW EHKLQG WKH IRUZDUG XQLWV WR SURYLGH IOH[LELOLW\ DQG
HQDEOHUDSLGUHDFWLRQRQFHWURRSVORFDWHWKHHQHP\

&+$5$&7(5,67,&62)7+( 2))(16(
 &KDUDFWHULVWLFVRIWKHRIIHQVHLQFOXGHDXGDFLW\FRQFHQWUDWLRQVXUSULVHDQGWHPSR(IIHFWLYHRIIHQVLYH
RSHUDWLRQV FDSLWDOL]H RQ DFFXUDWH DQG WLPHO\ LQWHOOLJHQFH DQG RWKHU UHOHYDQW LQIRUPDWLRQ UHJDUGLQJ HQHP\

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

IRUFHVZHDWKHUDQGWHUUDLQ&RPPDQGHUVPDQHXYHUIRUFHVWRSRVLWLRQVRIUHODWLYHDGYDQWDJHEHIRUHFRQWDFW
&RQWDFWZLWKHQHP\IRUFHVEHIRUHWKHGHFLVLYHRSHUDWLRQLVGHOLEHUDWHDQGGHVLJQHGWRVKDSHFRQGLWLRQVIRU
WKH GHFLVLYH RSHUDWLRQ 7KH GHFLVLYH RSHUDWLRQ GHWHUPLQHV WKH RXWFRPH RI WKH PDMRU RSHUDWLRQ EDWWOH RU
HQJDJHPHQWDQGFDSLWDOL]HVRQVXERUGLQDWHLQLWLDWLYHDQGVKDUHGXQGHUVWDQGLQJ
 :KLOHVXFFHVVIXORIIHQVLYHRSHUDWLRQVLQWKHMXQJOHHPSOR\DOOWKHFKDUDFWHULVWLFVRIWKHRIIHQVHWKH\
DUHQRUPDOO\FKDUDFWHUL]HGE\DFRPELQDWLRQRIGLVSHUVLRQDQGFRQFHQWUDWLRQ)RUH[DPSOHDULIOHFRPSDQ\
PD\PRYHRXWLQDGLVSHUVHGIRUPDWLRQVRWKDWLWFDQORFDWHWKHHQHP\ZLWKRXWEHLQJREVHUYHG2QFHDSODWRRQ
LQLWLDWHVFRQWDFWWKHGLVSHUVHGSODWRRQVFORVHRQWKHHQHP\UDSLGO\IURPDOOGLUHFWLRQVWRFRQFHQWUDWHWKHLU
FRPEDWSRZHUDQGRYHUZKHOPWKHHQHP\

$8'$&,7<
 $XGDFLW\ LV D ZLOOLQJQHVV WR WDNH EROG ULVNV &RPPDQGHUV GHPRQVWUDWH DXGDFLW\ E\ EDODQFLQJ ULVN
GHFLVLRQVZLWKSRWHQWLDOJDLQVDVWKH\H[HFXWHWKHLUSODQV,QDMXQJOHDWWDFNDFRPPDQGHUFDQFDSLWDOL]HRQ
DXGDFLW\WKURXJKFDUHIXOWHUUDLQDQDO\VLVZKHQGHVLJQLQJWKHFRQFHSWRIRSHUDWLRQVDQGVFKHPHRIPDQHXYHU
*LYHQWKHQRQOLQHDUQDWXUHRIMXQJOHRSHUDWLRQVFDUHIXOWHUUDLQDQDO\VLVFDQUHYHDOXQLTXHGLUHFWLRQVRIDWWDFN
WKDWPD\VXUSULVHWKHHQHP\$XGDFLW\FDQDOVREHHPERGLHGLQDQRSHUDWLRQE\LQYHQWLYHO\LQWHJUDWLQJDQG
FRRUGLQDWLQJ WKH GLUHFW DFWLRQ WDVNV RI 62) WKURXJKRXW WKH RSHUDWLRQ &RPELQLQJ 62) DFWLRQV ZLWK
FRQYHQWLRQDODWWDFNVFDQ XQKLQJHDQHQHP\GHIHQVLYHSODQ)LQDOO\FRPPDQGHUVLQFRUSRUDWH DXGDFLW\E\
DGMXVWLQJRSHUDWLRQVLQWLPHDFWLRQVWKDWPD\W\SLFDOO\EHVHTXHQWLDODUHFRQGXFWHGVLPXOWDQHRXVO\WRSUHVHQW
WKHHQHP\ZLWKPXOWLSOHGLOHPPDV

&21&(175$7,21
 &RQFHQWUDWLRQLVPDVVLQJWKHHIIHFWVRIFRPEDWSRZHULQWLPHDQGVSDFHDWWKHGHFLVLYHSRLQWWRDFKLHYH
D VLQJOH SXUSRVH &RQFHQWUDWLQJ IRUFHV GXULQJ MXQJOH RSHUDWLRQV LV GLIILFXOW JLYHQ WKH PRELOLW\ FKDOOHQJHV
DVVRFLDWHGZLWKWKHWHUUDLQDQGOLPLWHG/2&V&RPPDQGHUVFDUHIXOO\DVVHVVWKHDELOLW\IRUGLVSHUVHGIRUFHV
WRSURYLGHPXWXDOVXSSRUWEDVHGRQWKHVXSSRUWLQJUDQJHDQGVXSSRUWLQJGLVWDQFHRIVXERUGLQDWHXQLWV'XULQJ
RIIHQVLYH RSHUDWLRQV FRPPDQGHUV DFKLHYH FRQFHQWUDWLRQ E\ SODQQLQJ RSHUDWLRQV DORQJ FRQYHUJLQJ D[HV
&RPPDQGHUVFDQDOVRDFKLHYHFRQFHQWUDWLQJIRUFHVLQWKHMXQJOHE\PDLQWDLQLQJDODUJHDLUPRELOHUHVHUYHWR
UDSLGO\FRQFHQWUDWHIRUFHVRQFHWKHHQHP\LVORFDWHG8QLWVPXVWPDLQWDLQWKHDELOLW\WRUDSLGO\GLVSHUVHDIWHU
WKH\KDYHFRQFHQWUDWHGWRDYRLGSUHVHQWLQJWKHHQHP\ZLWKDOXFUDWLYHWDUJHW

68535,6(
 &RPPDQGHUVVXUSULVHHQHP\IRUFHVE\DWWDFNLQJDWDWLPHSODFHRULQDPDQQHUWKDWWKHHQHP\GRHV
QRW H[SHFW $XGDFLW\ DQG VXUSULVH DUH FRPSOHPHQWDU\ DXGDFLRXV SODQV RIWHQ UHO\ RQ VXUSULVH WR DFKLHYH
LQLWLDWLYHDQGDQDGYDQWDJHRYHUWKHHQHP\$WWDFNLQJDWQLJKWRUIURPXQH[SHFWHGRUPXOWLSOHD[HVFDQ
DFKLHYHWDFWLFDOVXUSULVH2SHUDWLRQDOVXUSULVHUHTXLUHVFDUHIXO236(&DQGGHFHSWLRQRSHUDWLRQVWRFRQFHDO
WKHREMHFWLYHDQGWLPLQJRIIULHQGO\RSHUDWLRQV

7(032
 TempoLVWKH UHODWLYH VSHHGDQGUK\WKPRI PLOLWDU\RSHUDWLRQVRYHUWLPH ZLWKUHVSHFWWRWKH HQHP\
$'3DQG0&53$KLJKRSHUDWLRQDOWHPSRJDLQVDQGUHWDLQVWKHLQLWLDWLYHE\IRUFLQJWKHHQHP\
WR UHDFW WR IULHQGO\ RSHUDWLRQV &RPPDQGHUV FRQGXFWLQJ MXQJOH RSHUDWLRQV PDLQWDLQ D KLJKHU RSHUDWLRQDO
WHPSRWKDQWKHHQHP\E\URWDWLQJIRUFHVWRIDFLOLWDWHDGHTXDWHUHVWDQGUHVXSSO\7HPSRLVDOVRGHWHUPLQHG
E\WKHFDSDFLW\IRUVXVWDLQPHQWORJLVWLFVDQGFRPPDQGHUVGHYHORSDFRQFHSWRIVXVWDLQPHQWORJLVWLFVWKDWLV
ERWKIOH[LEOHDQGDQWLFLSDWRU\7KHVXVWDLQPHQWORJLVWLFVSODQDQWLFLSDWHVUDWHVRIFRQVXPSWLRQDQGLVWDLORUHG
WR SURYLGH VXSSOLHV WR GLVSHUVHG XQLWV DV IDU IRUZDUG DV SRVVLEOH 7KH FRQFHSW RI VXVWDLQPHQWORJLVWLFV
IDFLOLWDWHVWKHHQGXUDQFHDQGUHDFKQHFHVVDU\WRPDLQWDLQRSHUDWLRQDOWHPSRRYHUWKHHQHP\
 7HPSR LV EHVW DFKLHYHG E\ GHVLJQLQJ RIIHQVLYH RSHUDWLRQV DQG FDPSDLJQV WKDW PDLQWDLQ FRQVWDQW
SUHVVXUH RQ HQHP\ IRUFHV 'XULQJ MXQJOH RSHUDWLRQV FRPPDQGHUV H[SORLW WKH VXFFHVV RI PRYHPHQWV WR
FRQWDFW DPEXVKHV DQG UDLGV E\ TXLFNO\ IROORZLQJ XS ZLWK GHOLEHUDWH DWWDFNV DQG SXUVXLWV WR SUHYHQW WKH
HQHP\ IURP UHFRQVWLWXWLQJ 2SHUDWLRQV DQG FDPSDLJQV WKDW DOORZ WKH HQHP\ SURORQJHG SHULRGV WR UHVW

6HSWHPEHU $730&73& 

&KDSWHU

UHVXSSO\DQGUHILWSXWIULHQGO\IRUFHVDWDGGLWLRQDOULVNDQGFHGHWKHPRPHQWXPJDLQHGIURPWKHSUHFHGLQJ
RSHUDWLRQDOVXFFHVVHV

7<3(62)2))(16,9(23(5$7,216
 2IIHQVLYHRSHUDWLRQVFRQVLVWRIWKHPRYHPHQWWRFRQWDFWDWWDFNH[SORLWDWLRQDQGSXUVXLW,QWKHMXQJOH
WKHPRYHPHQWWRFRQWDFWDQGVXERUGLQDWHIRUPVRIWKHDWWDFNVXFKDVWKHUDLGDQGWKHDPEXVKDUHWKHPRVW
HIIHFWLYHRIIHQVLYHRSHUDWLRQV

029(0(1772&217$&7
 $ movement to contactLVDW\SHRIRIIHQVLYHRSHUDWLRQGHVLJQHGWRGHYHORSWKHVLWXDWLRQDQGHVWDEOLVK
RUUHJDLQFRQWDFW$'3*LYHQWKHFKDOOHQJHVZLWKORFDWLQJWKHHQHP\WKHPRYHPHQWWRFRQWDFWLVD
FRPPRQRIIHQVLYHRSHUDWLRQFRQGXFWHGLQWKHMXQJOH7REHVXFFHVVIXOPRYHPHQWVWRFRQWDFWDUHIROORZHG
E\ KDVW\ DWWDFNV WR FDSLWDOL]H RQ WKH VXUSULVH DQG FRQIXVLRQ SUHYDOHQW LQ WKH MXQJOH 7KH H[HFXWLRQ RI D
PRYHPHQW WR FRQWDFW LQ WKH MXQJOH GLIIHUV OLWWOH IURP WKH PDQQHU E\ ZKLFK XQLWV H[HFXWH LW LQ RWKHU
HQYLURQPHQWV KRZHYHU GHQVH IROLDJH DQG UHVWULFWLYH WHUUDLQ FDQ LQIOXHQFH ZKHWKHU XQLWV XVH VLQJOH RU
PXOWLSOHFROXPQVGXULQJPRYHPHQW
 )RUFRPSDQLHVDQGEDWWDOLRQVPXOWLSOHFROXPQVSURYLGHPRUHFRQWURODQGDUHHDVLHUWRGHSOR\WURRSV
RQOLQHWKDQDVLQJOHILOH7RVSHHGXSGHSOR\PHQWXQLWVGHYHORSDQGUHKHDUVH623VDQGLPPHGLDWHDFWLRQ
GULOOV'XULQJDPRYHPHQWWRFRQWDFWLQWKHMXQJOHWURRSVPDLQWDLQDGLVWDQFHRIILYHWRVHYHQSDFHVEHWZHHQ
HDFKRWKHUZKLOHVWLOOPDLQWDLQLQJYLVXDOFRQWDFWWKURXJKWKHWKLFNYHJHWDWLRQ
 2QFH XQLWVPDNHFRQWDFWZLWKWKHHQHP\WKHILUVWHVWDEOLVKILUHVXSHULRULW\DQGVXSSUHVVWKHHQHP\
7KH FRPPDQGHU DVVHVVHV WKH VLWXDWLRQ DQG GHSOR\V WKH XQLW WR RYHUUXQ WKH HQHP\ IRUFHV ZKLOH WKH\ DUH
VXSSUHVVHG,QWKLVZD\WKHXQLWVHL]HVWKHLQLWLDWLYH7KHUHVKRXOGEHQRGHOD\LQWKHWURRSV¶PRYHPHQWIURP
WKH PDUFK IRUPDWLRQ LQWR DVVDXOW IRUPDWLRQ 6HFXULW\ HOHPHQWV SURWHFW WKH UHDU DQG SUHYHQW WKH HQHP\¶V
FRXQWHUDWWDFN&RPPDQGHUVPD\XVHDVHFXULW\IRUFHODWHUWRH[SORLWDVXFFHVVEXWWKH\DYRLGFRPPLWWLQJ
WKHIRUFHXQWLOWKH\XQGHUVWDQGWKHVLWXDWLRQ
 7KHVORZHUSDFHRIMXQJOHPDQHXYHUUHTXLUHVDUDSLGFDOOIRUVXSSRUWLQJLQGLUHFWILUHV8SRQPDNLQJ
FRQWDFWXQLWLPPHGLDWHO\UHTXHVWILUHVRQWKHHQHP\DQGDGMXVWIURPSODQQHGWDUJHWV(IIHFWLYHDQGWLPHO\
ILUHVXSSRUWUHTXLUHVDFFXUDWHDQGFRQWLQXRXVODQGQDYLJDWLRQ6XSSRUWLQJILUHVDQG&$6FDQSODFHILUHVRQ
VXVSHFWHGHQHP\ZLWKGUDZDOURXWHVSODFLQJIXUWKHUSUHVVXUHRQWKHHQHP\
 8QLWVDVVDXOWWKHHQHP\RQFHWKHLUH[DFWSRVLWLRQLVLGHQWLILHGDQGDKDVW\SODQLVGHYHORSHG6ROGLHUV
UHPDLQDOHUWIRUKLGGHQHQHP\SRVLWLRQVVQLSHUVDQGWXQQHOVWKURXJKZKLFKWKHHQHP\PLJKWPRYHWRDWWDFN
IURPWKHUHDU,IDVVHWVDQGWLPHSHUPLWWKHFRPPDQGHUPD\PRYHDSODWRRQRURWKHUIRUFHE\DLUWRFRQGXFW
DQDLUDVVDXOWWRDQREMHFWLYHLQWKHHQHP\¶VUHDUWKHUHE\GHQ\LQJWKHHQHP\WKHDELOLW\WRZLWKGUDZDQG
SUHYHQWLQJWKHHQHP\IURPFRQGXFWLQJDQHIIHFWLYHFRXQWHUDWWDFN
 )RUWLILHGHQHP\SRVLWLRQVLQGHQVHMXQJOHDUHRIWHQVRZHOOFRQFHDOHGWKDWWURRSVGRQRWNQRZRIWKHLU
SUHVHQFHXQWLOWKH\KDYHSK\VLFDOO\HQFRXQWHUHGWKHP:KHQHQFRXQWHUHGGXULQJDPRYHPHQWWRFRQWDFWWKH
EHVW&2$LVXVXDOO\WRDGMXVWIRUZDUGGLVSRVLWLRQVHQRXJKWRDOORZXVHRIVXSSRUWLQJLQGLUHFWILUHVWRGHSOR\
DGGLWLRQDOIRUFHVWREORFNSRVVLEOHZLWKGUDZDOURXWHVDQGWKHQWRPDQHXYHUXQGHUWKHFRYHURIVXSSRUWLQJ
ILUHVWRGHIHDWWKHIRUWLILFDWLRQV
 $IWHU WURRSV VHL]H WKH REMHFWLYH WKH FRPPDQGHU HVWDEOLVKHV VHFXULW\ ZLWK D KDVW\ SHULPHWHU
REVHUYDWLRQSRVWVDQGHDUO\ZDUQLQJGHYLFHVDQGVHQVRUV6HFXULW\LVFULWLFDODVWKHHQHP\PD\DWWHPSWWR
FRXQWHUDWWDFNZKLOHIULHQGO\IRUFHVFRQGXFWDFWLRQVRQWKHREMHFWLYH

$77$&.
 $QattackLVDW\SHRIRIIHQVLYHRSHUDWLRQWKDWGHVWUR\VRUGHIHDWVHQHP\IRUFHVVHL]HVDQGVHFXUHV
WHUUDLQRUERWK$'3Attack LVDQRIIHQVLYHDFWLRQFKDUDFWHUL]HGE\FRRUGLQDWHGPRYHPHQWVXSSRUWHG
E\ILUHFRQGXFWHGWRGHIHDWGHVWUR\RUFDSWXUHWKHHQHP\RUVHL]HDQGRUVHFXUHNH\WHUUDLQ0&53
$QDWWDFNGLIIHUVIURPDPRYHPHQWWRFRQWDFWEHFDXVHLQDQ DWWDFNFRPPDQGHUVNQRZDWOHDVWSDUWRIWKH
HQHP\¶V GLVSRVLWLRQ :KHQ DWWDFNLQJ LQ WKH MXQJOH WKH WHUUDLQ RIWHQ UHTXLUHV UHGXFHG GLVWDQFHV EHWZHHQ

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

WURRSVDQGXQLWVDQGWKHGHVLJQDWLRQRIDVVDXOWSRVLWLRQVDVIDUIRUZDUGDVSRVVLEOH$QDVVDXOWSRVLWLRQLVD
FRYHUHGDQGFRQFHDOHGSRVLWLRQVKRUWRIWKHREMHFWLYHIURPZKLFKXQLWVPDNHILQDOSUHSDUDWLRQVWRDVVDXOWWKH
REMHFWLYH%HFDXVHRIWKHGHQVHWHUUDLQDQGWKLFNYHJHWDWLRQPDQ\RIWKHFRQWUROPHDVXUHVDQGWHFKQLTXHV
XVHGGXULQJOLPLWHGYLVLELOLW\DWWDFNVZRUNZHOOGXULQJDMXQJOHDWWDFN
 %HFDXVHWKHHQHP\¶VGLVSRVLWLRQLVNQRZQGXULQJDQDWWDFNFRPPDQGHUVLQWHJUDWHLQGLUHFWILUHVXSSRUW
LQWRWKHLUVFKHPHRIPDQHXYHU'XULQJWKHDVVDXOWVXSSRUWLQJILUHVDUHSODFHGRQWKHHQHP\XQWLOVKLIWHGE\
WKHDVVDXOWLQJFRPPDQGHU7KH\DUHWKHQDGMXVWHGRQWRWDUJHWVZKLFKZLOODVVLVWWKHSURJUHVVRIDWWDFNLQJ
IRUFHVE\EORFNLQJHQHP\FRXQWHUDWWDFNVRUZLWKGUDZDO
 $VVDXOWLQJWURRSVPRYHRYHUWKHREMHFWLYHXVLQJDJJUHVVLYHILUHDQGPRYHPHQWWRRYHUFRPHHQHP\
UHVLVWDQFH$VVDXOWLQJWURRSVPXVWUHPDLQDOHUWWRVQLSHUVPLQHV,('VDQGWXQQHOVWKDWSHUPLWWKHHQHP\WR
PDQHXYHUWRWKHUHDURIDWWDFNLQJIRUFHV$VVDXOWLQJSODWRRQVDQGVTXDGVPRYHLQDVLQJOHGLUHFWLRQZLWK
ILUHVFRQFHQWUDWHGRQHQHP\SRVLWLRQVDVWKH\DUHORFDWHG/HDGHUVDGMXVWWKHLUSURJUHVVDQGFRQWUROPRYHPHQW
WKURXJKSUHGHWHUPLQHGFRQWUROPHDVXUHVVXFKDVSKDVHOLQHVDQGYLVXDOVLJQDOV7URRSVFDQXVHREVFXUDQWV
WRFRQFHDOWKHDVVDXOWIRUFH¶VIODQNVIURPHQHP\REVHUYDWLRQDQGUHGXFHWKHLUDELOLW\WRGHOLYHUHIIHFWLYHILUHV
 )RUWLILHGGHIHQVLYHSRVLWLRQVDUHFRPPRQLQWKHMXQJOH,IWURRSVPXVWDWWDFNVXFKDSRVLWLRQWKH\ZLOO
OLNHO\HQFRXQWHUEXQNHUVDQGREVWDFOHVVXFKDVZLUHPLQHV,('VDQGERRE\WUDSV8QLWVRIWHQKDYHWREODVW
RUEXUQWKHHQHP\RXWRIVXFKSRVLWLRQV$WWDFNLQJIRUWLILHGGHIHQVLYHSRVLWLRQVJHQHUDOO\UHTXLUHDWWDFNVRQ
DQDUURZIURQWFRXSOHGZLWKVLJQLILFDQWILUHVXSSRUW(QJLQHHUVVSHFLDOZHDSRQVDQGHTXLSPHQWDWWDFKHGWR
WKHPDQHXYHUIRUFHVDVVLVWLQGHVWUR\LQJWKHIRUWLILFDWLRQV
 $VZLWKPRYHPHQWWRFRQWDFWDIWHUXQLWVVHL]HWKHREMHFWLYHWKHFRPPDQGHUHVWDEOLVKHVVHFXULW\ZLWK
DKDVW\SHULPHWHUREVHUYDWLRQSRVWVDQGHDUO\ZDUQLQJGHYLFHVDQGVHQVRUV6HFXULW\LVFULWLFDODVWKHHQHP\
PD\DWWHPSWWRFRXQWHUDWWDFNZKLOHIULHQGO\IRUFHVDUHFRQGXFWLQJDFWLRQVRQWKHREMHFWLYH
 $ GHIHQGLQJ HQHP\ SRVVHVVLQJ DUWLOOHU\ URFNHW DQG F\EHUVSDFH DQG HOHFWURPDJQHWLF DFWLYLW\
FDSDELOLWLHV VHHNV WR XVH DQ\ DGYDQWDJH WR GLVUXSW IULHQGO\ FRPPDQG RU FRQWURO ILUH VXSSRUW LQIRUPDWLRQ
FROOHFWLRQ DQG VXVWDLQPHQW DFWLYLWLHV $Q DWWDFNLQJ IRUFH FRQVLGHUV WKH IROORZLQJ ZKHQ IDFHG ZLWK D
GHIHQGLQJHQHP\HQMR\LQJVXSHULRUILUHVXSSRUWFDSDELOLWLHV
z 7RLQFUHDVHWKHUDQJHDQGHIIHFWLYHQHVVRIIULHQGO\LQGLUHFWILUHV\VWHPVFRPPDQGHUVWDUJHWVHOHFW
HQHP\IRUFHVWRHQDEOHWKHIRUZDUGGLVSODFHPHQWDQGSRVLWLRQLQJRIDUWLOOHU\DVVHWV
z 'LVSHUVHDWWDFNLQJWURRSVV\VWHPVDQGVXSSOLHVDVPXFKDVLVSRVVLEOH
z 3URWHFWDWWDFNLQJWURRSVV\VWHPVDQGVXSSOLHVE\PRYLQJWKHPLQWRDWWDFNSRVLWLRQVRQO\ DWWKH
ODVWSRVVLEOHPRPHQW
z &RXQWHU HQHP\ WDUJHW DFTXLVLWLRQ HIIRUWV E\ XVLQJ PLOLWDU\ GHFHSWLRQ FRYHU DQG FRQFHDOPHQW
HIIHFWLYHO\
z 7DUJHWHQHP\FRPPDQGDQGFRQWUROQRGHV
z ([SORLW LQLWLDO SHQHWUDWLRQV RI HQHP\ GHIHQVLYH SRVLWLRQV WR WKH PD[LPXP H[WHQW SRVVLEOH
2YHUUXQQLQJHQHP\DUWLOOHU\V\VWHPVFRPPDQGDQGFRQWUROQRGHVDQGVXVWDLQPHQWDVVHWVZLOO
VHULRXVO\GHJUDGHDGHIHQGLQJIRUFH¶VFRPEDWSRZHU

5DLGV
 $ raidLVDQRSHUDWLRQWRWHPSRUDULO\VHL]HDQDUHDWRVHFXUHLQIRUPDWLRQFRQIXVHDQHQHP\FDSWXUH
SHUVRQQHORUHTXLSPHQWRUWRGHVWUR\DFDSDELOLW\FXOPLQDWLQJZLWKDSODQQHGZLWKGUDZDO-30DULQH
&RUSVDPSOLILFDWLRQLVDQDWWDFNXVXDOO\VPDOOVFDOHLQYROYLQJDSHQHWUDWLRQRIKRVWLOHWHUULWRU\IRUDVSHFLILF
SXUSRVHRWKHUWKDQVHL]LQJDQGKROGLQJWHUUDLQ,WHQGVZLWKDSODQQHGZLWKGUDZDOXSRQFRPSOHWLRQRIWKH
DVVLJQHGPLVVLRQ0&535DLGVDUHXVXDOO\FRQGXFWHGE\EDWWDOLRQVL]HGRUVPDOOHUIRUFHV5DLGVDUH
DXGDFLRXVUDSLGO\H[HFXWHGDQGRIVKRUWGXUDWLRQ
 -XQJOHVIDYRUUDLGRSHUDWLRQVDVWKHH[FHOOHQWFRQFHDOPHQWHQDEOHVVNLOOHGUDLGLQJSDWUROVWRRSHUDWH
GHHSLQHQHP\WHUULWRU\3ODWRRQVL]HGXQLWVDUHEHVWVXLWHGWRMXQJOHUDLGV&RPPDQGHUVSODQIRUVXSSRUWLQJ
DUWLOOHU\ILUHVEXWGXHWRWKHUDLG¶VUHOLDQFHRQVWHDOWKDQGVXUSULVHPD\H[HFXWHSODQZLWKRXWLQGLUHFWILUH
VXSSRUW

6HSWHPEHU $730&73& 

&KDSWHU

 5DLGVWKDWUHTXLUHGHHSSHQHWUDWLRQLQWRHQHP\KHOGDUHDVDUHEHVWH[HFXWHGE\HVWDEOLVKLQJDSDWURO
EDVH LQ WKH JHQHUDO DUHD RI WKH ILQDO REMHFWLYH )URP WKHUH OHDGHUV FDQ VHQG UHFRQQDLVVDQFH SDWUROV WR
UHFRQQRLWHUHQHP\SRVLWLRQVZKLOHWKHUHVWRIWKHIRUFHFRPSOHWHVLWVSUHSDUDWLRQVIRUWKHUDLG+HOLFRSWHUV
DQGZDWHUFUDIWFDQHIIHFWLYHO\WUDQVSRUWDUDLGLQJIRUFHUDSLGO\WRWKHYLFLQLW\RILWVREMHFWLYHZLWKRXWGHSOHWLQJ
LWVSK\VLFDOVWUHQJWKLQDGLIILFXOWPDUFK
 5DLGVLQWKHMXQJOHHQYLURQPHQWPXVWVWHPIURPUHOLDEOHDQGSUHFLVHLQWHOOLJHQFH7KHDFWLRQVRIWKH
UDLGLQJXQLWPXVWEHGHFLVLYHDQGUDSLGWRFDWFKDQHOXVLYHMXQJOHHQHP\$UDLG¶VVXFFHVVGHSHQGVRQJRRG
LQWHOOLJHQFHDVRXQGSODQDQGDUHKHDUVHGZLWKGUDZDO
 /RJLVWLFVXSSRUWLVQRUPDOO\PLQLPDOZKHQXQLWVFRQGXFWUDLGV8QLWVVKRXOGFDUU\DVPXFKSHWUROHXP
RLOVOXEULFDQWVDQGDPPXQLWLRQDVSRVVLEOHDQGWDNHDGYDQWDJHRIDQ\FDSWXUHGHQHP\VXSSOLHV 6HHDOVR
SDUDJUDSK  IRU PRUH RQ FDSWXUHG VXSSOLHV 2QFH D UDLGLQJ IRUFH FURVVHV LWV OLQH RI GHSDUWXUH RQO\
OLPLWHG HPHUJHQF\ DHULDO UHVXSSO\ RI FULWLFDO VXSSOLHV DQG DHURPHGLFDO HYDFXDWLRQ DUH IHDVLEOH JLYHQ WKH
DEVHQFHRIVHFXUHJURXQG/2&V&RPPDQGHUVPXVWWKRURXJKO\SODQIRUDHULDOUHVXSSO\RIDUDLGLQJIRUFH
VLQFHLWHQWDLOVJUHDWHUULVNWKDQQRUPDORSHUDWLRQV8QGHUWKHVHFRQGLWLRQVXQLWVW\SLFDOO\GHVWUR\GDPDJHG
HTXLSPHQWWKDWFDQQRWPDLQWDLQWKHSDFHRIRSHUDWLRQV

$PEXVK
 $QambushLVDQDWWDFNE\ILUHRURWKHUGHVWUXFWLYHPHDQVIURPFRQFHDOHGSRVLWLRQVRQDPRYLQJRU
WHPSRUDULO\KDOWHGHQHP\)0AmbushLVDVXUSULVHDWWDFNE\ILUHIURPFRQFHDOHGSRVLWLRQVRQD
PRYLQJRUWHPSRUDULO\KDOWHGHQHP\0&53$QDPEXVKVWRSVGHQLHVRUGHVWUR\VHQHP\IRUFHVE\
PD[LPL]LQJWKHHOHPHQWRIVXUSULVH$PEXVKHVFDQHPSOR\GLUHFWILUHV\VWHPVDVZHOODVRWKHUGHVWUXFWLYH
PHDQVVXFKDVFRPPDQGGHWRQDWHGPLQHVLQGLUHFWILUHVDQGVXSSRUWLQJQRQOHWKDOHIIHFWV7KH\PD\LQFOXGH
DQDVVDXOWWRFORVHZLWKDQGGHVWUR\HQHP\IRUFHV,QDQDPEXVKJURXQGREMHFWLYHVGRQRWKDYHWREHVHL]HG
DQGKHOG
 7KHDPEXVKLVPRUHLPSRUWDQWPRUHHIIHFWLYHDQGPRUHIUHTXHQWO\XVHGGXULQJMXQJOHFRPEDWWKDQ
DQ\RWKHUW\SHRIRIIHQVLYHRSHUDWLRQ-XQJOHWHUUDLQSURYLGHVPDQ\RSSRUWXQLWLHVIRUDZHOOFRQFHDOHGIRUFH
WR JDLQ VXUSULVH ZKLFK LV HVVHQWLDO IRU D VXFFHVVIXO DPEXVK 'HVWUXFWLRQ RI HQHP\ IRUFHV LV WKH SULPDU\
SXUSRVHRIPRVWDPEXVKHVEXWRWKHUEHQHILWVUHVXOWIURPDVXFFHVVIXODPEXVKLQFOXGLQJWKH²
z 'LVUXSWLRQRIHQHP\RSHUDWLRQVVLQFHWURRSVEHFRPHUHOXFWDQWWRPRYHDQGILJKWLQDUHDVZKHUH
DPEXVKHVDUHIUHTXHQW
z &DSWXUHRIGHWDLQHHVDQGHTXLSPHQWZKLFKPD\\LHOGLQWHOOLJHQFHGDWD
z &DSWXUHRIVXSSOLHVWKXVLQFUHDVLQJFRPEDWHIIHFWLYHQHVVDWWKHH[SHQVHRIWKHHQHP\,QVRPH
LQVWDQFHVWKLVLVWKHSULPDU\VRXUFHRIVXSSOLHVIRUJXHUULOODIRUFHV
 &RPPDQGHUVFKRVHDORFDWLRQIRUDQDPEXVKDIWHUFDUHIXOO\DQDO\]LQJWKHWHUUDLQPDSVDHULDOLPDJHU\
DQGUHFRQQDLVVDQFHGDWD7KHVLWHFKRVHQPXVWFRQWULEXWHWRWKHVXUSULVHRIWKHDPEXVK&RYHUHGDYHQXHVRI
DSSURDFKDQGZLWKGUDZDOJRRGILHOGVRIILUHDQGFDQDOL]DWLRQRIWKHHQHP\DUHFKDUDFWHULVWLFVRIDJRRG
DPEXVKVLWH7URRSVDOZD\VUHFRQQRLWHUDQGDSSURDFKDQDPEXVKVLWHIURPWKHUHDU
 &DPRXIODJHLVRQHRIWKHPRVWLPSRUWDQWDVSHFWVLQWKHDPEXVK,GHDOO\WURRSVILUHZHDSRQVWKURXJK
VFUHHQVRIXQGLVWXUEHGOLYLQJIROLDJH%HIRUHWKHDPEXVK6ROGLHUV0DULQHVUHPRYHDQ\VSRLODJHUHVXOWLQJ
IURP WKH SRVLWLRQ¶V SUHSDUDWLRQ 6XFFHVVIXO DPEXVKHV UHTXLUH GLVFLSOLQH WURRSV RQ DQ DPEXVK PXVW EH
SUHSDUHGWRUHPDLQLQWKHVDPHSRVLWLRQIRUKRXUVDWDWLPHZLWKRXWVXGGHQPRYHPHQWVRUQRLVH,ILQGLYLGXDOV
RUWHDPVPXVWEHUHOLHYHGIURPWKHDPEXVKVLWHWRUHVWRUUHFRYHU FRPPDQGHUVURWDWHWKHPVRRQO\DIHZ
WURRSVPRYHDWDQ\RQHWLPH5HOLHIURWDWLRQVVKRXOGQHYHUUHPRYHPRUHWKDQSHUFHQWRIWKHDPEXVKIRUFH
IURPWKHLUSRVLWLRQDWDQ\VLQJOHWLPH

'HIHQVH$JDLQVW$PEXVK
 6LQFHDPEXVKHVRFFXUIUHTXHQWO\GXULQJMXQJOHRSHUDWLRQVDXQLWPRYLQJWKURXJKWKHMXQJOHPXVWWDNH
DOO SRVVLEOH PHDVXUHV WR UHGXFH LWV YXOQHUDELOLW\ WR DPEXVK 7KH PRVW HIIHFWLYH PHDQV RI FRXQWHULQJ DQ
DPEXVKLVWRGHWHFWLWEHIRUHHQWHULQJWKHNLOO]RQH
 'LVPRXQWHGWURRSVKDYHDQDGYDQWDJHRYHUPRXQWHGWURRSVLQDYRLGLQJDPEXVKHVEHFDXVHWKH\GRQRW
KDYHWRPRYHRQURDGVRUWUDLOV(IIHFWLYHFRPPDQGHUVRIGLVPRXQWHGXQLWVPDNHDPDSDQGDQDO\]HDHULDO

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

UHFRQQDLVVDQFHWRGHWHFWOLNHO\DPEXVKVLWHVDQGSODQURXWHVDFFRUGLQJO\'XULQJPRYHPHQWWURRSVPDLQWDLQ
VHFXULW\ WR WKH IURQW UHDU DQG IODQNV DW DOO WLPHV VHH ILJXUH RQ SDJH  $OHUW WURRSV JRRG QRLVH
GLVFLSOLQHDQGZHOOUHKHDUVHGVLJQDOVFDQUHGXFHWKHXQLW¶V FKDQFHVRIDPEXVK$FFXUDWHODQGQDYLJDWLRQ
FRQWLQXRXVILUHVXSSRUWSODQQLQJDQGZHOOUHKHDUVHGUHDFWLRQVWRDPEXVKEDWWOHGULOOVDOVRUHGXFHDQHQHP\¶V
SRWHQWLDOIRUDQHIIHFWLYHDPEXVK
 0RXQWHG IRUFHVDOVRUHTXLUH 623VDQG773WRGHIHQGDJDLQVWDQGUHDFWWRDQDPEXVK 7KHOLPLWHG
QXPEHU DQG RIWHQ QDUURZ QDWXUH RI /2&V LQ WKH MXQJOH PDNHV PRXQWHG IRUFHV SDUWLFXODUO\ YXOQHUDEOH WR
DPEXVK7KLVLVHVSHFLDOO\WUXHZKHUHWKHIROLDJHJURZVXSWRWKHHGJHRIWKHURDG7RPLWLJDWHWKLVULVN
FRPPDQGHUV FDUHIXOO\ SODQ DQG GHOLEHUDWHO\ FRQWURO PRXQWHG PRYHPHQW DQG FRQYR\ RSHUDWLRQV :KHQ
SRVVLEOH WKH\ YDU\ URXWHV DQG PRYHPHQW WLPHV WR SUHYHQW VHWWLQJ D SUHGLFWDEOH SDWWHUQ IRU WKH HQHP\
$UPRUHGYHKLFOHVVKRXOGHVFRUWFRQYR\VDQGWUDIILFLQIRUPDWLRQVKRXOGEHFDUHIXOO\JXDUGHG)LUHSODQQLQJ
URXWHVHOHFWLRQDQGUHFRQQDLVVDQFHDUHLPSRUWDQWIRUPRXQWHGWURRSVDVZHOODVIRUGLVPRXQWHGWURRSV)RU
WKHUHDFWWRDPEXVKWDVNVWHSVDQGSHUIRUPDQFHPHDVXUHVVHH$73

&RXQWHUDWWDFN
 &RXQWHUDWWDFNVRFFXUDIWHUDQHQHP\DWWDFNVIULHQGO\IRUFHVDQGLWVLJQDOVWKHWUDQVLWLRQWRRIIHQVLYH
RSHUDWLRQV8QLWVFRQGXFWFRXQWHUDWWDFNVWRSUHYHQWWKHHQHP\IURPH[SORLWLQJLQLWLDOSHQHWUDWLRQVDQGIURP
FRQVROLGDWLQJ JDLQV &RPPDQGHUV PD\ HPSOR\ WKHLU UHVHUYH WR FRQGXFW D FRXQWHUDWWDFN 7URRSV LQ WKH
SHQHWUDWLRQDUHDUHPDLQLQWKHLUSRVLWLRQVDQGFRQWLQXHWRVXSSRUWWKHFRXQWHUDWWDFNLQJIRUFH,IWKH\OHDYH
WKHLUSRVLWLRQVZKLOHWKHHQHP\LVEHLQJH[SHOOHGWKH\LQFUHDVHWKHULVNRIIUDWULFLGHE\WKHFRXQWHUDWWDFNLQJ
IRUFH

(;3/2,7$7,21
 $QexploitationLVDW\SHRIRIIHQVLYHRSHUDWLRQWKDWXVXDOO\IROORZVDVXFFHVVIXODWWDFNDQGLVGHVLJQHG
WRGLVRUJDQL]HWKHHQHP\LQGHSWK$'3-3GHILQHVexploitationDVDQRIIHQVLYHRSHUDWLRQWKDW
XVXDOO\IROORZVD VXFFHVVIXODWWDFNDQGLVGHVLJQHGWRGLVRUJDQL]HWKHHQHP\LQGHSWK 7KH0DULQH&RUSV
DPSOLILFDWLRQLVDQRIIHQVLYHRSHUDWLRQIROORZLQJDVXFFHVVIXODWWDFNWKDWLVGHVLJQHGWRGLVRUJDQL]HWKHHQHP\
LQGHSWK,WH[WHQGVWKHLQLWLDOVXFFHVVRIWKHDWWDFNE\SUHYHQWLQJWKHHQHP\IURPGLVHQJDJLQJZLWKGUDZLQJ
DQGUHHVWDEOLVKLQJDQHIIHFWLYHGHIHQVH0&53 ([SORLWDWLRQVVHHNWRGLVLQWHJUDWHHQHP\IRUFHVWR
WKHSRLQWWKDWWKH\KDYHQRDOWHUQDWLYHEXWWRVXUUHQGHURUUHWUHDW'LYLVLRQVDQGKLJKHUHFKHORQVQRUPDOO\
SODQH[SORLWDWLRQVDVEUDQFKHVRUVHTXHOV
 &RPPDQGHUVFRQVLGHUH[SORLWLQJVXFFHVVIXORIIHQVLYHRSHUDWLRQVE\FRQGXFWLQJDLUDVVDXOWRSHUDWLRQV
WREORFNWKHHQHP\ZLWKGUDZDOGHIHDWWKHHQHP\UHVHUYHRUGLVUXSWORJLVWLFDORSHUDWLRQV,IDLUDVVDXOWIRUFHV
DUHQRWDYDLODEOHFRPPDQGHUVHPSOR\&$6DQGLQGLUHFWILUHWREORFNHQHP\HVFDSHURXWHV,IDFFHSWDEOH
/2&VDUHDYDLODEOHDUPRUFDQSOD\DYLWDOUROHLQH[SORLWLQJVXFFHVVIXORIIHQVLYHRSHUDWLRQVDQGSXUVXLQJD
ZLWKGUDZLQJ HQHP\ +RZHYHU FRPPDQGHUV H[HUFLVH FDXWLRQ WR HQVXUH WKDW XQLWV VHFXUH VXSSRUW DQG
FRQVROLGDWLRQDUHDVVRWKDWE\SDVVHGHQHP\IRUFHVGRQRWGLVUXSWIULHQGO\RSHUDWLRQV

38568,7
 $ pursuitLVDW\SHRIRIIHQVLYHRSHUDWLRQGHVLJQHGWRFDWFKRUFXWRIIDKRVWLOHIRUFHDWWHPSWLQJWR
HVFDSHZLWKWKHDLPRIGHVWUR\LQJLW$'3$ pursuitLVDQRIIHQVLYHRSHUDWLRQGHVLJQHGWRFDWFKRUFXW
RIIDKRVWLOHIRUFHDWWHPSWLQJWRHVFDSHZLWKWKHDLPRIGHVWUR\LQJLW0&533XUVXLWVRIWHQIROORZ
VXFFHVVIXO H[SORLWDWLRQV 3XUVXLWV HQWDLO UDSLG PRYHPHQW DQG GHFHQWUDOL]HG FRQWURO ZKLFK PDNHV WKHP
GLIILFXOWLQWKHMXQJOH'LIILFXOWWHUUDLQDQGWKHSUHFDXWLRQVUHTXLUHGWRSUHYHQWDPEXVKFDQVORZSXUVXLQJ
IRUFHV+RZHYHULQWKHMXQJOHSXUVXLWRSHUDWLRQVFDQSURYHH[WUHPHO\YDOXDEOHVLQFHIRUFHVPDLQWDLQFRQWDFW
ZLWKDQHOXVLYHHQHP\&RPPDQGHUVRIWHQHPSOR\WKHLUUHVHUYHWRFRQGXFWDSXUVXLWDVWKLVHOHPHQWLVOLNHO\
PRUHUHVWHGDQGEHWWHUHTXLSSHGLQWKHDIWHUPDWKRIVXFFHVVIXORIIHQVLYHRSHUDWLRQV,IDYDLODEOHFRPPDQGHUV
XVHDLUDVVDXOWIRUFHVDQGDWWDFNDYLDWLRQWRSXUVXHDUHWUHDWLQJHQHP\

)25062)0$1(89(5
 Forms of maneuver DUH GLVWLQFW WDFWLFDO FRPELQDWLRQV RI ILUH DQG PRYHPHQW ZLWK D XQLTXH VHW RI
GRFWULQDO FKDUDFWHULVWLFV WKDW GLIIHU SULPDULO\ LQ WKH UHODWLRQVKLS EHWZHHQ WKH PDQHXYHULQJ IRUFH DQG WKH

6HSWHPEHU $730&73& 

&KDSWHU

HQHP\$'37KHIRUPVRIPDQHXYHUFRQVLVWRIHQYHORSPHQWIURQWDODVVDXOWLQILOWUDWLRQSHQHWUDWLRQ

DQGWXUQLQJPRYHPHQWV)RUPVRIPDQHXYHURIWHQIRUPWKHEDVLVIRUD&2$7HUUDLQUHVWULFWLRQVFRPPRQLQ
WKHMXQJOHRIWHQSUHFOXGHWKHFRQGXFWRIHQYHORSPHQWVDQGSHQHWUDWLRQVKRZHYHUIURQWDODVVDXOWVWXUQLQJ
PRYHPHQWVDQGLQILOWUDWLRQVFDQEHHIIHFWLYHLQWKHMXQJOH

)5217$/$66$8/7
 $IURQWDODVVDXOWLVDIRUPRIPDQHXYHULQZKLFKDQDWWDFNLQJIRUFHVHHNVWRGHVWUR\DZHDNHUHQHP\
IRUFHRUIL[DODUJHUHQHP\IRUFHLQSODFHRYHUDEURDGIURQW$FRPPDQGHUFRPPRQO\XVHVDIURQWDODVVDXOW
DVDVKDSLQJRSHUDWLRQLQFRQMXQFWLRQZLWKRWKHUIRUPVRIPDQHXYHU &RPPDQGHUVSULPDULO\XVHDIURQWDO
DVVDXOWWRPDLQWDLQSUHVVXUHDQGIL[WKHHQHP\IRUFH7KLVLVSDUWLFXODUO\LPSRUWDQWGXULQJMXQJOHRSHUDWLRQV
ZKHUHORFDWLQJDQGIL[LQJWKHHQHP\FDQSURYHH[FHHGLQJO\GLIILFXOWJLYHQWKHGLVSHUVHGQDWXUHRIRSHUDWLRQV
DQGUHVWULFWLYHWHUUDLQ)URQWDODVVDXOWVDUHHIIHFWLYHZKHQWKHHQHP\KDVPDVVHGDFURVVDZLGHDUHDDQGPD\
EHWKHSUHIHUUHGIRUPRIPDQHXYHUIRUDVSRLOLQJDWWDFN
 'XULQJMXQJOHRSHUDWLRQVWKHHQHP\UDUHO\IRUPVDFRQWLQXRXVEURDGIURQW,QVWHDGWKHHQHP\PD\
PDVVDORQJDOLQHDUIURQWLQDVHULHVRIGHIHQVLEOHVWURQJSRLQWVRQWHUUDLQIHDWXUHVVXFKDVKLOOVRUPRXQWDLQV
:KHQ H[HFXWLQJ D IURQWDO DVVDXOW DJDLQVW DQ HQHP\ DUUD\HG LQ WKLV PDQQHU WKH DWWDFNLQJ IRUFH VHHNV WR
GLVFRYHU D JDS LQ WKH HQHP\¶V GHIHQVHV 7KH FRPPDQGHU FDQ WKHQ H[SORLW WKDW ZHDNQHVV DQG GLVUXSW WKH
LQWHJULW\RIWKHHQHP\¶VGHIHQVH2QFHWURRSVGHWHFWDJDSWKHFRPPDQGHUZHLJKWVWKHH[SORLWLQJIRUFHZLWK
DGGLWLRQDOIRUFHVSULRULW\IRUVXSSRUWRUSULRULW\IRULQGLUHFWILUHVRU&$67KHFRPPDQGHUPD\DOVRHPSOR\
WKHUHVHUYHWRIXUWKHUH[SORLWWKHJDSRUVHFXUHWKHVKRXOGHUVRIWKHEUHDFK7KHRWKHUDWWDFNLQJIRUFHVPDLQWDLQ
SUHVVXUHRQWKHHQHP\GHIHQVHVWRIL[WKHPLQSODFHDQGHQDEOHFRQWLQXHGVXFFHVVE\WKHH[SORLWLQJIRUFH

,1),/75$7,21
 -XQJOHVDUH LGHDOIRULQILOWUDWLRQ$Q infiltrationLVD IRUP RI PDQHXYHULQ ZKLFKDQDWWDFNLQJ IRUFH
FRQGXFWVXQGHWHFWHGPRYHPHQWWKURXJKRULQWRDQDUHDRFFXSLHGE\HQHP\IRUFHVWRRFFXS\DSRVLWLRQRI
DGYDQWDJH EHKLQG WKRVH HQHP\ SRVLWLRQV ZKLOH H[SRVLQJ RQO\ VPDOO HOHPHQWV WR HQHP\ GHIHQVLYH ILUHV
)0 $QinfiltrationLVWKHPRYHPHQWWKURXJKRULQWRDQDUHDRUWHUULWRU\RFFXSLHGE\HLWKHUIULHQGO\
RU HQHP\ WURRSV RU RUJDQL]DWLRQV 7KH PRYHPHQW LV PDGH HLWKHU E\ VPDOO JURXSV RU E\ LQGLYLGXDOV DW
H[WHQGHGRULUUHJXODULQWHUYDOV:KHQXVHGLQFRQQHFWLRQZLWKWKHHQHP\LWLPSOLHVWKDWFRQWDFWLVDYRLGHG
0&53  7KH MXQJOH¶V GHQVH YHJHWDWLRQ DQG UXJJHG WHUUDLQ OLPLW WKH HQHP\¶V DELOLW\ WR GHWHFW
LQILOWUDWLRQDQGSURYLGHIULHQGO\IRUFHVZLWKWKHFRYHUDQGFRQFHDOPHQWWRPRYHEHKLQGHQHP\OLQHV$VVXFK
LQILOWUDWLRQLVWKHSULPDU\IRUPRIPDQHXYHUZKHQFRQGXFWLQJUDLGV 1RUPDOO\GLVPRXQWHGIRUFHVFRQGXFW
MXQJOHLQILOWUDWLRQVKRZHYHUXQGHUFHUWDLQFLUFXPVWDQFHVLQILOWUDWLQJXQLWVPD\XVHKHOLFRSWHUVRUZDWHUFUDIW
 ,QILOWUDWLRQV UHTXLUH FDUHIXO FRQWURO PHDVXUHV WR V\QFKURQL]H RSHUDWLRQV DQG SUHYHQW IUDWULFLGH
&RPPRQLQILOWUDWLRQFRQWUROPHDVXUHVLQFOXGHSKDVHOLQHVUDOO\SRLQWVLQILOWUDWLRQODQHVOLQNXSSRLQWVDQG
FOHDUO\XQGHUVWRRGUHFRJQLWLRQVLJQDOV8QLWVPRYHLQVPDOOWHDPVIURPWKHLUDVVHPEO\DUHDVDORQJLQILOWUDWLRQ
ODQHV WR WKH REMHFWLYH XVLQJ OLQNXS SRLQWV IRU FRQWURO DQG FRRUGLQDWLRQ ,Q DFFRUGDQFH ZLWK 0(777&
0(777 XQLWV GHVLJQDWH DQ REMHFWLYH UDOO\ SRLQW WR UHDVVHPEOH LQWR D FRKHUHQW XQLW DQG PDNH DOO ILQDO
SUHSDUDWLRQV EHIRUH FRQGXFWLQJ WKH HQVXLQJ DWWDFN $Q objective rally point LV DQ HDVLO\ LGHQWLILDEOH SRLQW
ZKHUH DOO HOHPHQWV RI WKH LQILOWUDWLQJ XQLW DVVHPEOH DQG SUHSDUH WR DWWDFN WKH REMHFWLYH $'3  $Q
LQILOWUDWLRQODQHLVDFRQWUROPHDVXUHWKDWFRRUGLQDWHVIRUZDUGDQGODWHUDOPRYHPHQWRILQILOWUDWLQJXQLWVDQG
IL[HVILUHSODQQLQJUHVSRQVLELOLWLHV&RPPDQGHUVDYRLGXVLQJURDGVWUDLOVDQGVWUHDPVDVLQILOWUDWLRQODQHVDV
WKHVHDUHOLNHO\XQGHUHQHP\VXUYHLOODQFH$OLQNXSSRLQWLVZKHUHWZRLQILOWUDWLQJHOHPHQWVLQWKHVDPHRU
GLIIHUHQW LQILOWUDWLRQ ODQHV DUH VFKHGXOHG WR PHHW WR FRQVROLGDWH EHIRUH SURFHHGLQJ ZLWK WKHLU PLVVLRQV
%HFDXVH LQILOWUDWLRQV UHTXLUH GLYHUJHQW XQLWV WR OLQN XS LQ DUHDV ZKHUH WKH HQHP\ LV SUHVHQW WKH ULVN IRU
IUDWULFLGHLVJUHDWHUWKDQLQRWKHUIRUPVRIPDQHXYHU7RPLWLJDWHWKHULVNRIIUDWULFLGHFRPPDQGHUVHQVXUH
WKDW6ROGLHUV0DULQHVUHKHDUVHLQILOWUDWLRQVDQGXQGHUVWDQGFRQWUROPHDVXUHVDQGUHFRJQLWLRQVLJQDOV
 62)DQGOLJKWLQIDQWU\XQLWVEDWWDOLRQVL]HDQGVPDOOHUDUHEHVWVXLWHGWRFRQGXFWDQLQILOWUDWLRQ:HOO
SODQQHGDQGUHVRXUFHGGHFHSWLRQRSHUDWLRQVFDQGLYHUWWKHHQHP\¶VIRFXVIURPWKHLQILOWUDWLQJIRUFHV)RUFHV
FDQFRQGXFWLQGLUHFWILUHLQDUHDVDZD\IURPLQILOWUDWLRQODQHVWRGLYHUWWKHHQHP\¶VDWWHQWLRQDQGPDVNWKH
VRXQGV RI LQILOWUDWLQJ IRUFHV 7KH GLIILFXOW\ RI LQILOWUDWLRQ LQFUHDVHV ZLWK WKH VL]H DQG QXPEHU RI XQLWV
LQYROYHG ,QILOWUDWLRQV DUH DOVR PRUH GLIILFXOW ZKHQ $UP\0DULQH &RUSV IRUFHV IDFH D KRVWLOH FLYLOLDQ
SRSXODWLRQ8QGHUVXFKFLUFXPVWDQFHVLQILOWUDWLRQE\FRQYHQWLRQDOIRUFHVPD\EHLPSRVVLEOH

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

 ,QILOWUDWLRQVUHTXLUHDFFXUDWHLQWHOOLJHQFHWRSUHYHQWWKHPIURPEHFRPLQJFRVWO\DQGWLPHFRQVXPLQJ
SURELQJ RSHUDWLRQV $FFXUDWH LQWHOOLJHQFH DJJUHVVLYH UHFRQQDLVVDQFH DQG GHWDLOHG LPDJHU\ HQDEOH DQ
LQILOWUDWLQJIRUFHWRDYRLGWKHHQHP\¶VVHFXULW\IRUFHPLQLPL]HGLUHFWFRQWDFWDQGPD[LPL]HVXUSULVH6WDIIV
FDQ XVH D WKRURXJK WHUUDLQ DQDO\VLV FRPELQHG ZLWK D GHWDLOHG 0&22 DQG HQHP\ VLWXDWLRQ WHPSODWH WR
JUDSKLFDOO\GHSLFWGHDGVSRWVLQWKHHQHP\¶VEDWWOHILHOGVXUYHLOODQFH7KHFRPPDQGHUFDQWKHQSODQKRZWR
H[SDQGWKRVHH[LVWLQJGHDGVSRWVLQWRLQILOWUDWLRQODQHVWKURXJKDSUHFLVLRQDWWDFNRQVHOHFWHGHQHP\V\VWHPV
 'HWDLOHG LQWHOOLJHQFH DQG LPDJHU\ HQDEOH WKH FRPPDQGHU WR LGHQWLI\ WKH DSSURSULDWH QXPEHU RI
LQILOWUDWLRQODQHV:KHQGHWHUPLQLQJWKHQXPEHURILQILOWUDWLRQODQHVWRXVHWKHFRPPDQGHUDQGVWDIIFRQVLGHU
WKHVL]HRIWKHLQILOWUDWLQJIRUFHWKHHQHP\GLVSRVLWLRQWKHWHUUDLQDQGWKHWLPHDYDLODEOH&RPPDQGHUVDOVR
FRQVLGHUZKHWKHULQILOWUDWLQJIRUFHVVKRXOGEHZLWKLQVXSSRUWLQJGLVWDQFHRUUDQJHRIHDFKRWKHUDQGPD\SODQ
LQILOWUDWLRQODQHVDFFRUGLQJO\
 $VLQJOHLQILOWUDWLRQODQH²
z )DFLOLWDWHVQDYLJDWLRQFRQWURODQGUHDVVHPEO\
z 5HTXLUHVWKHH[LVWHQFHRUFUHDWLRQRIRQO\RQHJDSLQWKHHQHP\¶VSRVLWLRQ
z 5HGXFHVWKHDUHDIRUZKLFKGHWDLOHGLQWHOOLJHQFHLVUHTXLUHG

 0XOWLSOHLQILOWUDWLRQODQHV²
z 5HTXLUHWKHH[LVWHQFHRUFUHDWLRQRIPXOWLSOHJDSVLQWKHHQHP\¶VSRVLWLRQ
z 5HGXFHWKHSRVVLELOLW\RIFRPSURPLVLQJWKHHQWLUHIRUFH
z ,QFUHDVHGLIILFXOW\ZLWKPDLQWDLQLQJFRQWURO

 ,Q DGGLWLRQ WR SODQQLQJ IRU LQILOWUDWLRQ WKH FRPPDQGHU DQG VWDII SODQ IRU WKH H[WUDFWLRQ RI WKH
LQILOWUDWLQJIRUFH7KHH[WUDFWLRQSODQQRWRQO\GHWDLOVWKHPHWKRGRIH[WUDFWLRQDIWHUPLVVLRQFRPSOHWLRQEXW
DOVRSURYLGHVH[WUDFWLRQLQVWUXFWLRQVIRUFRPSURPLVHGIRUFHVDQGFDVXDOWLHV'XULQJMXQJOHRSHUDWLRQVWKH
DELOLW\ WR UHLQIRUFH RU H[WUDFW IRUFHV TXLFNO\ LV FKDOOHQJHG E\ WKH UHVWULFWLYH WHUUDLQ DQG WKH GLIILFXOWLHV
DVVRFLDWHG ZLWK PRXQWHG RSHUDWLRQV 7R PLWLJDWH WKLV XQLWV LGHQWLI\ SRWHQWLDO KHOLFRSWHU ODQGLQJ ]RQHV
DGMDFHQWWRLQILOWUDWLRQURXWHVDQGWKHREMHFWLYHWRXVHWRH[WUDFWIRUFHV
 &RPPDQGHUVSURYLGHDERUWFULWHULDDQGFOHDUO\GHVLJQDWHWKHDXWKRULWLHVIRUDERUWLQJWKHPLVVLRQ6WDIIV
GHYHORSDERUWFULWHULDDQGDVVRFLDWHGGHFLVLRQSRLQWVGXULQJWKHSODQQLQJSURFHVVDQGWUDQVPLWLQIRUPDWLRQWR
DOOLQYROYHGVXERUGLQDWHKHDGTXDUWHUV([DPSOHVRISRWHQWLDODERUWFULWHULDLQFOXGH
z 6LJQLILFDQWSRUWLRQVRIWKHLQILOWUDWLQJIRUFH¶VFRPEDWSRZHUDUHORVWWKURXJKQDYLJDWLRQ HUURUV
HQHP\DFWLRQDFFLGHQWVRUPDLQWHQDQFHIDLOXUHV
z (QHP\PRYHPHQWRUVLJQLILFDQWUHLQIRUFHPHQWDWWKHREMHFWLYH
z &RPSURPLVHE\WKHHQHP\
z &KDQJHVLQWKHWDFWLFDOVLWXDWLRQWKDWPDNHWKHPLVVLRQQRORQJHUDSSURSULDWHVXFKDVWKHLQLWLDWLRQ
RIDQHQHP\DWWDFN
 ,IWKHLQILOWUDWLQJIRUFHPDNHVFRQWDFWZLWKWKHHQHP\GXULQJWKHLUPRYHPHQWWKH\FDQHLWKHUEUHDN
FRQWDFWDQGE\SDVVWKHHQHP\DORQJDQRWKHULQILOWUDWLRQODQHDERUWWKHPLVVLRQRURYHUUXQWKHHQHP\DQG
FRQWLQXHWKHPLVVLRQ3UHIHUDEO\DFWLRQVRQFRQWDFWDUHFRQGXFWHGE\WKHIRUZDUGUHFRQQDLVVDQFHIRUFHRU
WKH VPDOOHVWXQLWSRVVLEOH ZKLOHWKH PDLQERG\ PRYHVWRDQRWKHULQILOWUDWLRQODQHUHFRQVWLWXWHVD IRUZDUG
UHFRQQDLVVDQFHIRUFHDQGFRQWLQXHVWKHPLVVLRQ7KHLQILOWUDWLQJIRUFHLJQRUHVODUJHO\LQHIIHFWLYHHQHP\ILUH
DQGFRQWLQXHVWRPRYHWRZDUGVWKHREMHFWLYH

7851,1*029(0(17
 $ turning movementLVDIRUPRIPDQHXYHULQZKLFKWKHDWWDFNLQJIRUFHVHHNVWRDYRLGWKHHQHP\¶V
SULQFLSOHGHIHQVLYHSRVLWLRQVE\VHL]LQJREMHFWLYHVEHKLQGWKHHQHP\¶VFXUUHQWSRVLWLRQVWKHUHE\FDXVLQJWKH
HQHP\IRUFHWRPRYHRXWRIWKHLUFXUUHQWSRVLWLRQVRUGLYHUWPDMRUIRUFHVWRPHHWWKHWKUHDW)0
$WWDFNLQJWKHHQHP\¶VIODQNRUUHDUPD\GUDZWKHHQHP\DZD\IURPLWVFXUUHQWOLQHRIRSHUDWLRQRUIRUFHLW
WRDEDQGRQDSRVLWLRQE\UHTXLULQJLW WRGLYHUWIRUFHVLQUHVSRQVHWRWKHDWWDFN:KLOHW\SLFDOO\FRQGXFWHGE\
GLYLVLRQVL]HGIRUFHVRUODUJHUWXUQLQJPRYHPHQWVLQWKHMXQJOHPD\FRQVLVWRIODUJHDPEXVKHVRUUDLGVLQ
WKH HQHP\¶VUHDURUIODQNFRQGXFWHGE\EDWWDOLRQVRUEULJDGHV7XUQLQJ PRYHPHQWVLQWKHMXQJOHDUHEHVW
FRQGXFWHGXVLQJDLUDVVDXOWZDWHUERUQHRUULYHULQHIRUFHV7KHVHRSHUDWLRQVUHTXLUHGHWDLOHGLQWHOOLJHQFHRI

6HSWHPEHU $730&73& 

&KDSWHU

WKHHQHP\¶VORFDWLRQGLVSRVLWLRQDQGREMHFWLYHVWRHQVXUHDODUJHUHQHP\IRUFHGRHVQRWFXWRIIDQGLVRODWH
DWWDFNLQJIRUFHV7KHVHRSHUDWLRQVDOVRUHO\RQWKHDYDLODELOLW\RIDYLDWLRQVXSSRUWRUYLDEOHULYHUVWRUDSLGO\
PRYHIULHQGO\IRUFHVLQWRSRVLWLRQIRUWKHDWWDFN

:$5),*+7,1*)81&7,21&216,'(5$7,216
 (DFKEDWWOHRUHQJDJHPHQWKDVXQLTXHFKDUDFWHULVWLFVVXFKDVWKHW\SHVRIZHDSRQVGHJUHHRIWDFWLFDO
PRELOLW\DQGWKHLQIOXHQFHRIYDULRXVHIIHFWVDFURVVPXOWLSOHGRPDLQV &RPPDQGHUVPRVWOLNHO\WRHQMR\
WDFWLFDOVXFFHVVDUHWKRVHDEOHWRYLVXDOL]HWKHEDWWOHILHOGXQGHUVWDQGWKHLPSOLFDWLRQVRIH[LVWLQJIULHQGO\DQG
HQHP\GLVSRVLWLRQVDQGWDNHHIIHFWLYHDFWLRQILUVW&RPPDQGHUVPDLQWDLQWKLVPRPHQWXPE\IROORZLQJXS
DWWDFNVTXLFNO\WRGHQ\HQHP\IRUFHVDQ\RSSRUWXQLW\WRDGMXVWRUDGDSWWRWKHQHZVLWXDWLRQ7KHWHPSRRI
IULHQGO\RSHUDWLRQVPXVWEHIDVWHQRXJKWRSUHYHQWHIIHFWLYHHQHP\FRXQWHUDWWDFNV&RPPDQGHUVPDLQWDLQ
SUHVVXUHE\DGMXVWLQJFRPELQDWLRQVRIIULHQGO\FDSDELOLWLHVWRH[SORLWLQLWLDOJDLQVDQGFUHDWHIXUWKHUGLOHPPDV
IRUWKHHQHP\
 7KHIROORZLQJFRQVLGHUDWLRQVLQSDUDJUDSKVWKURXJKRUJDQL]HGE\ZDUILJKWLQJIXQFWLRQDUH
QRWXQLTXHEXWDSSO\WRRIIHQVLYHRSHUDWLRQVLQWKHMXQJOHHQYLURQPHQW

,1)250$7,21
 7KHLQIRUPDWLRQZDUILJKWLQJIXQFWLRQVXSSRUWVRIIHQVLYHRSHUDWLRQVE\GHFHLYLQJWKHHQHP\GDPDJLQJ
HQHP\ PRUDOH DQG SURYLGLQJ QRQFRPEDWDQWV ZLWK PHWKRGV IRU DYRLGLQJ DUHDV ZKHUH FRPEDW LV OLNHO\
0LOLWDU\GHFHSWLRQ0,/'(&DQG0,62DUHWKHSULPDU\W\SHVRILQIRUPDWLRQRSHUDWLRQVFRQGXFWHGGXULQJ
WKH RIIHQVH 0,62 WHDPV FRQGXFW LQIRUPDWLRQ RSHUDWLRQV LQ WKH RIIHQVH WR HQFRXUDJH DGYHUVDU\ IRUFHV WR
GHIHFWGHVHUW IOHHRUWDNHDQ\RWKHUDFWLRQEHQHILFLDOWRIULHQGO\IRUFHV0,62WHDPVDOVRFRQGXFWWKHVH
RSHUDWLRQVWRGHJUDGHHQHP\FRPPDQGDQGFRQWURO0HWKRGVIRU0,62LQFOXGHIDFHWRIDFHHQJDJHPHQWV
WKH XVH RI ORXGVSHDNHUV GLVWULEXWLRQ RI OHDIOHWV UDGLR DQG WHOHYLVLRQ EURDGFDVWV DQG WKH XVH RI LQWHUQHW
VXSSRUWHGFRPPXQLFDWLRQVLQFOXGLQJVRFLDO PHGLD &RPPDQGHUVXVH0,/'(&WRGHFHLYHWKHHQHP\DQG
SURWHFWWKHPDLQHIIRUW0,/'(&LVXVHGWR²
z $FKLHYHVXUSULVH
z 3UHVHUYHIULHQGO\IRUFHVHTXLSPHQWDQGLQVWDOODWLRQVIURPGHVWUXFWLRQ
z 0LQLPL]HDQHQHP\¶VDGYDQWDJH
z *DLQWLPH
z &DXVH DQ DGYHUVDU\ WR GHSOR\ IRUFHV RU FDSDELOLWLHV SUHPDWXUHO\ RU LQ D PDQQHU RU ORFDWLRQ
DGYDQWDJHRXVWRIULHQGO\IRUFHV
z &DXVHDQDGYHUVDU\WRZDVWHFRPEDWSRZHUZLWKGHOD\HGRULQDSSURSULDWHDFWLRQVWKHUHE\FHGLQJ
LQLWLDWLYHWRIULHQGO\IRUFHV
z ,QIOXHQFHWKHDGYHUVDU\¶VLQWHOOLJHQFHFROOHFWLRQIRFXV
z &RQGLWLRQWKHDGYHUVDU\WRSDUWLFXODUSDWWHUQVRIIULHQGO\EHKDYLRUWKDWIULHQGO\IRUFHVFDQH[SORLW
ODWHU

&200$1'$1'&21752/
 &RPPDQGHUVPD\UHTXLUHDGGLWLRQDOVLJQDOVXSSRUWVXFKDVUHWUDQVPLVVLRQWHDPVMRLQWQHWZRUNQRGH
VLJQDODVVHWVVDWHOOLWHFRPPXQLFDWLRQVDQGWDFWLFDOUDGLRFRPPXQLFDWLRQVWRIDFLOLWDWHFRPPDQGDQGFRQWURO
DFURVVODUJHRIIHQVLYH$2VLQFRPSOH[WHUUDLQ
 $OO XQLWV FRQGXFWLQJ RIIHQVLYH RSHUDWLRQV VKRXOG H[SHFW WR RSHUDWH LQ D GHJUDGHG FRPPXQLFDWLRQV
HQYLURQPHQW 'HJUDGDWLRQ PD\ DULVH IURP HQYLURQPHQWDO FLUFXPVWDQFHV HQHP\ DFWLRQ GLUHFWHG DJDLQVW
IULHQGO\ FRPPXQLFDWLRQV DQG LQIRUPDWLRQ V\VWHPV RU PDOIXQFWLRQV $ GHJUDGHG FRPPXQLFDWLRQV
HQYLURQPHQWPD\EHSHUPDQHQWRUWHPSRUDU\7KHXVHRIPLVVLRQRUGHUVDQGFRPPDQGHU¶VLQWHQWLVFULWLFDO
WR UHPDLQLQJ HIIHFWLYH LQ D GHJUDGHG FRPPXQLFDWLRQV HQYLURQPHQW 6ROGLHUV0DULQHV WUDLQ WR QDYLJDWH
ZLWKRXWWKHDLGRI*36HQDEOHGGHYLFHV6HH$SSHQGL[$IRUPRUHLQIRUPDWLRQRQQDYLJDWLRQWHFKQLTXHV
 7KHGLIILFXOW\RIPRYHPHQWDQGPDQHXYHUVL]HRIWKH$2SUREDELOLW\RIGHJUDGHGFRPPXQLFDWLRQV
DQGVXGGHQOHWKDOLW\RIWKHMXQJOHHQYLURQPHQWRIWHQH[SRVHVDQ\ZHDNQHVVLQFRPPDQGDQGFRQWUROE\WKH

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

FRPPDQGHU &RPPDQGHUV PXVW UHO\ RQ WKHLU VXERUGLQDWH OHDGHUV DQG VWDII HQDEOHG E\ PLVVLRQ
FRPPDQGFRPPDQGDQGFRQWUROWRDFKLHYHWKHLULQWHQWDQGHQGVWDWHLQWKHMXQJOHHQYLURQPHQW

029(0(17$1'0$1(89(50$1(89(5
 -XQJOH RSHUDWLRQV RIWHQ LQYROYH ULYHUV DQG RWKHU JDSV DV IUHTXHQW REVWDFOHV :HW JDS FURVVLQJV DUH
DPRQJWKHPRVWFULWLFDOFRPSOH[DQGULVN\FRPELQHGDUPVRSHUDWLRQV)RUFHVFRQGXFWKDVW\FURVVLQJVDVD
FRQWLQXDWLRQRIWKHDWWDFNZKHQHYHUSRVVLEOHEHFDXVHWKHWLPHQHHGHGWRSUHSDUHIRUDGHOLEHUDWHJDSFURVVLQJ
DOORZV HQHP\ IRUFHV PRUH WLPH WR VWUHQJWKHQ WKHLU GHIHQVH7KH VL]H RI D JDS DV ZHOO DV WKH HQHP\ DQG
IULHQGO\ VLWXDWLRQV GLFWDWHV WKH VSHFLILF 773 XVHG WR FRQGXFW D FURVVLQJ 7KH MXQJOH UHTXLUHV PRUH JDS
FURVVLQJ VLPSO\ EHFDXVH WKH HQYLURQPHQW KDV OLPLWHG LQIUDVWUXFWXUH DQG PRUH ULYHUV DQG VWUHDPV 6HH
$730&73 $ 0&:3  IRU PRUH LQIRUPDWLRQ RQ JDS FURVVLQJ 6HH $SSHQGL[ % IRU
WHFKQLTXHVXQLTXHWRZHWJDSFURVVLQJVLQWKHMXQJOH
 &RPPDQGHUVFDQSURWHFWPDQHXYHULQJIRUFHVDQGGHFHLYHWKHHQHP\E\XVLQJREVFXUDQWV%HIRUHXVLQJ
REVFXUDQWV FRPPDQGHUV DFNQRZOHGJH WKDW XVLQJ REVFXUDQWV FDQ EHWUD\ IULHQGO\ SRVLWLRQV &RPPDQGHUV
HPSOR\REVFXUDWLRQLQWKHRIIHQVHWR²
z 3URWHFWIULHQGO\IRUFHV
z 'HJUDGHHQHP\UHFRQQDLVVDQFHVXUYHLOODQFHDQGWDUJHWDFTXLVLWLRQV\VWHPV
z 'HFHLYHHQHP\FRPPDQGHUV

 7KHDELOLW\WRILJKWDWQLJKWXQGHUOLPLWHGYLVLELOLW\FRQGLWLRQVRUZKLOHHPSOR\LQJREVFXUDWLRQLVDQ
LPSRUWDQWDVSHFWRIFRQGXFWLQJ PDQHXYHU7KH SHUIRUPDQFH RIWDVNVDQGWKHFRQGXFWRIRSHUDWLRQVXQGHU
WKHVHFRQGLWLRQVUHGXFHWKHULVNRIGHWHFWLRQDQGHQHP\WDUJHWLQJ2IIHQVLYHRSHUDWLRQVFRQGXFWHGLQWKHVH
FRQGLWLRQV FDQ DFKLHYH VXUSULVH DQG PDNH HQHP\ YLVXDO WDUJHW DFTXLVLWLRQ PRUH GLIILFXOW 7KH\ DOVR WDNH
DGYDQWDJHRIDIULHQGO\IRUFH¶VDELOLW\WRPDQHXYHUDQGHPSOR\ILUHVXQGHUOLPLWHGYLVLELOLW\FRQGLWLRQV,Q
GHQVHYHJHWDWLRQXQLWVPD\QHHGWRXVHVRPHRIWKHVDPHFRQWUROWHFKQLTXHVGXULQJQLJKWRSHUDWLRQV WKDW
WKH\XVHGGXULQJWKHGD\

,17(//,*(1&(
 7KHFRYHUDQGFRQFHDOPHQWDIIRUGHGE\MXQJOHWHUUDLQDQGIROLDJHPDNHLWHVSHFLDOO\FKDOOHQJLQJIRU
WKHGHYHORSPHQWDQGGLVWULEXWLRQRIUHDOWLPHLQWHOOLJHQFHSURGXFWVWRLQIRUPWKHFRPPDQGHUDQGVWDIIGXULQJ
RIIHQVLYHRSHUDWLRQV6LWXDWLRQWHPSODWHVDGGUHVVWHUUDLQPRELOLW\FRUULGRUVDUWLOOHU\UDQJHIDQVPRYHPHQW
WLPHV EHWZHHQ HQHP\ UHVHUYH DVVHPEO\ DUHD ORFDWLRQV DQG DGYDQFLQJ IULHQGO\ IRUFHV DQG RWKHU UHODWHG
LQWHOOLJHQFHYDULDEOHV+RZHYHUVLWXDWLRQWHPSODWHVORVHWKHLUYDOXHZKHQUHDOWLPHLQWHOOLJHQFHSURGXFWVDUH
QRWDYDLODEOHWRVXSSRUWGHFLVLRQPDNLQJ

),5(6
 )LUHVXSSRUWLVHVVHQWLDOLQWKHMXQJOH*LYHQWKHFKDOOHQJHVDVVRFLDWHGZLWKHPSOR\LQJKHDY\ZHDSRQV
DQGDUPRURYHUUHVWULFWLYHWHUUDLQGLVPRXQWHGIRUFHVRIWHQUHO\RQVPDOODUPVDQGOLJKWFUHZVHUYHGZHDSRQV
GXULQJ RIIHQVLYH MXQJOH RSHUDWLRQV ,QGLUHFW ILUH VXSSRUW LV WKHUHIRUH FULWLFDO LQ PDNLQJ XS IRU PDQHXYHU
IRUFHV¶ODFNRIILUHSRZHULQWKHMXQJOH7RPLWLJDWHWKLVXQLWVPXVWSLQSRLQWWDUJHWVE\UHFRQQDLVVDQFHDQG
DGMXVWILUHVZLWKLQYHU\FORVHUDQJHRIDWWDFNLQJWURRSV
 $V DQ DWWDFNLQJ IRUFH PRYHV IRUZDUG SUHSDUDWLRQ ILUH VHTXHQWLDOO\ VXSSUHVVHV RU GHVWUR\V HQHP\
SRVLWLRQV&RPPDQGHUVDVVHVVWKHLPSDFWDQGOLNHOLKRRGRIORVLQJDGHJUHHRIVXUSULVHDQGLQFUHDVLQJWKHLU
YXOQHUDELOLW\WRFRXQWHUILUHZKHQGHWHUPLQLQJZKHWKHUWRH[HFXWHSUHSDUDWLRQILUH&RPPDQGHUVPD\DOVR
GHFLGHWRHPSOR\SUHFLVLRQPXQLWLRQVDJDLQVWVHOHFWHGKLJKSD\RIIWDUJHWVWRQHJDWHWKHUHTXLUHPHQWIRUORQJ
GXUDWLRQSUHSDUDWLRQILUHVXVLQJVWDQGDUGPXQLWLRQV
 Preparation fireLVQRUPDOO\DKLJKYROXPHRIILUHVGHOLYHUHGRYHUDVKRUWSHULRGRIWLPHWRPD[LPL]H
VXUSULVHDQGVKRFNHIIHFW3UHSDUDWLRQILUHLQFOXGHHOHFWURQLFDWWDFNDQGVKRXOGEHV\QFKURQL]HGZLWKRWKHU
HOHFWURQLFZDUIDUHDFWLYLWLHV)0&RQYHQWLRQDOSUHSDUDWLRQILUHJHQHUDOO\FHDVHVRQFHIULHQGO\IRUFHV
DUH HQJDJLQJ WKH HQHP\ ZLWK GLUHFW ILUH KRZHYHU (: PD\ FRQWLQXH WR GLVUXSW WKH HQHP\¶V FRPPDQG
FRQWURO DQG FRPPXQLFDWLRQV QHWZRUN WKURXJK MDPPLQJ &RPPDQGHUV FDQ DOVR FRQGXFW RIIHQVLYH F\EHU
RSHUDWLRQVWRIXUWKHUGHJUDGHWKHHQHP\¶VDELOLW\WRJDWKHULQWHOOLJHQFHRUFRPPDQGDQGFRQWUROIRUFHV

6HSWHPEHU $730&73& 

&KDSWHU

 &RPPDQGHUV DWWHPSW WR KDYH DLU GHIHQVH DVVHWV LQ GLUHFW VXSSRUW RI WKHLU DWWDFN 6XFK FRYHUDJH
JHQHUDOO\ZHLJKWVWRZDUGWKHXQLW¶VGHFLVLYHRSHUDWLRQ,WDOVRHVWDEOLVKHVDSURWHFWLYHFRUULGRURYHUWKHWHUUDLQ
WUDYHUVHG E\ XQLWV FRQGXFWLQJ WKDW RSHUDWLRQ &RPPDQGHUV HPSOR\ SDVVLYH DLU GHIHQVH PHDVXUHV DV DQ
HVVHQWLDOSDUWRIDLUDQGPLVVLOHGHIHQVHSODQQLQJDWDOOOHYHOV8VLQJSDVVLYHDLUGHIHQVHPHDVXUHUHGXFHVWKH
HIIHFWLYHQHVVRIWKHHQHP\DLUWKUHDW

6867$,10(17/2*,67,&6
 6XVWDLQPHQWORJLVWLFVPDLQWDLQVWKHPRPHQWXPRIDQDWWDFNE\GHOLYHULQJVXSSOLHVDVIDUIRUZDUGDV
SRVVLEOH 6XVWDLQPHQWORJLVWLFV FRPPDQGHUV PXVW DFW UDWKHU WKDQ UHDFW WR VXSSRUW UHTXLUHPHQWV 7KH
H[LVWHQFHRIKDELWXDOVXSSRUWUHODWLRQVKLSVIDFLOLWDWHVWKHDELOLW\WRDQWLFLSDWHUHTXLUHPHQWV
 %HFDXVH PRVW IRUFHV FRQGXFWLQJ RIIHQVLYH MXQJOH RSHUDWLRQV DUH GLVPRXQWHG WKH UHTXLUHPHQW IRU
DGGLWLRQDO SHWUROHXP RLOV DQG OXEULFDQWV LV OHVV WKDQ GXULQJ RIIHQVLYH RSHUDWLRQV LQ RWKHU HQYLURQPHQWV
+RZHYHUWKHOLPLWHG/2&VSRWHQWLDOO\KLJKFDVXDOWLHVDQGUHVWULFWLYHWHUUDLQFRPSOLFDWHFDVXDOW\HYDFXDWLRQ
DQGLQFUHDVHUHTXLUHPHQWVIRU&ODVV9,,,UHVXSSO\0HGLFDOSODQQHUVPXVWDQWLFLSDWHWKLVLQFUHDVHGGHPDQG
0DQHXYHU IRUFHV SODQ DQG UHKHDUVH JURXQGEDVHG FDVXDOW\ HYDFXDWLRQ SURFHGXUHV DQG LGHQWLI\ KHOLFRSWHU
ODQGLQJ]RQHVWKDWVXSSRUWWKHLUVFKHPHRIPDQHXYHU
 (IIHFWLYHFRPPDQGHUVGRQRWXVHDHULDOUHVXSSO\DVWKHSULPDU\PHWKRGRIVXVWDLQPHQWIRURIIHQVLYH
MXQJOH RSHUDWLRQV 7KH ODFN RI GURS ]RQHV WKH OLNHOLKRRG WKDW WKH HQHP\ PD\ FDSWXUH VXSSOLHV DQG WKH
SRWHQWLDOIRUUHVXSSO\DLUFUDIWWREHWUD\WKHORFDWLRQRIIULHQGO\IRUFHVPDNHDHULDOUHVXSSO\H[WUHPHO\ULVN\

3527(&7,21
 3URWHFWLRQFRQVLGHUDWLRQVLQWKHRIIHQVHFRQVLVWRIERWKDFWLYHDQGSDVVLYHPHDVXUHV236(&LVFULWLFDO
DQG FRPPDQGHUV WDNH PHDVXUHV WR SUHYHQW FRPSURPLVLQJ VHQVLWLYHLQIRUPDWLRQ DERXW SHQGLQJ RSHUDWLRQV
ZLWK+1IRUFHV&RPPDQGHUVDGMXVWPRYHPHQWIRUPDWLRQVEDVHGRIIWKHWKUHDWIURPERWKJURXQGDQGDLU
DWWDFNV3DWUROVDYRLGWUDYHOOLQJDORQJWUDLOVURDGVDQGVWUHDPVWRPLWLJDWHWKHULVNRIDPEXVK,ID&%51
WKUHDW H[LVWV OHDGHUV HQVXUH WKHLU 6ROGLHUV0DULQHV DGKHUH WR WKH SURSHU 0233 SURWRFRO DQG DGMXVW WKH
ZRUNUHVWF\FOHWRUHGXFHWKHULVNRIKHDWLQMXULHVDQGGHK\GUDWLRQ

&2162/,'$7(*$,16
 %HFDXVH WKH\ RFFXU LQ SRUWLRQV RI WKH $2 ZKHUH ODUJHVFDOH FRPEDW RSHUDWLRQV KDYH HQGHG
FRQVROLGDWLQJJDLQVLQWKHMXQJOHFDQVHUYHDVDWUDQVLWLRQIURPRIIHQVLYHRSHUDWLRQVWRVWDELOLW\RSHUDWLRQV
7KHVH HIIRUWV SULPDULO\ FRQVLVW RI UHGXFLQJ E\SDVVHG RU HQFLUFOHG HQHP\ IRUFHV DQG VHFXULQJ WKH ORFDO
SRSXODFH%HFDXVHRIWKHODFNRIH[LVWLQJLQIUDVWUXFWXUHFRQVROLGDWLQJJDLQVLQWKHMXQJOHFDQEHVLPSOHUWKDQ
LQ RWKHU HQYLURQPHQWV KRZHYHU WKH PRELOLW\ GLIILFXOWLHV DVVRFLDWHG ZLWK MXQJOH WHUUDLQ FDQ FKDOOHQJH
FRPPDQGHUVWRHIIHFWLYHO\ORFDWHLVRODWHDQGGHIHDWE\SDVVHGHQHP\IRUFHV7KHVHVDPHPRELOLW\GLIILFXOWLHV
DOVRFKDOOHQJHOHDGHUVWRVXUYH\DQGDGGUHVVVWDELOL]DWLRQUHTXLUHPHQWVDFURVVWKH$2
 Consolidate gainsDUHDFWLYLWLHVWRPDNHHQGXULQJDQ\WHPSRUDU\RSHUDWLRQDOVXFFHVVDQGWRVHWWKH
FRQGLWLRQV IRU D VXVWDLQDEOH VHFXULW\ HQYLURQPHQW DOORZLQJ IRU D WUDQVLWLRQ RI FRQWURO WR RWKHU OHJLWLPDWH
DXWKRULWLHV$'3%HFDXVHMXQJOHRSHUDWLRQVJHQHUDOO\RULHQWRQWKHHQHP\QRWWHUUDLQDQGDUHH[HFXWHG
LQ QRQFRQWLJXRXV $2V FRQVROLGDWLQJ JDLQV LQ WKH MXQJOH UHTXLUHV D GLIIHUHQW DSSURDFK WKDQ LQ RWKHU
HQYLURQPHQWV&RQVROLGDWLQJJDLQVLVIXUWKHUFRPSOLFDWHGE\WKHKDUVKWHUUDLQOLPLWHGH[LVWLQJLQIUDVWUXFWXUH
DQGVSDUVHSRSXODWLRQRIPRVWMXQJOHDUHDV7KHVHFRQGLWLRQVPDNHLWDSSHDUDVWKRXJKFRQVROLGDWLQJJDLQV
LQ WKH MXQJOH ZDVWHV FRPEDW SRZHU DV LI WKH OLPLWHG LQIUDVWUXFWXUH DQG VSDUVH SRSXODWLRQ GR QRW ZDUUDQW
VHFXULW\RUVWDELOLW\HIIRUWV+RZHYHUWRDFKLHYHODVWLQJVXFFHVVLQWKHMXQJOHFRPPDQGHUVFDQQRWQHJOHFWWR
FRQVROLGDWHJDLQV,QVWHDGWKH\WDLORUFRQVROLGDWLRQDFWLYLWLHVWRWKHORFDOHQYLURQPHQWWKHSRSXODFHDQGWKH
HQHP\
 &RQVROLGDWLRQ DFWLYLWLHV LQ WKH MXQJOH DUH FKDUDFWHUL]HG E\ OLPLWHG RIIHQVLYH RSHUDWLRQV DQG DUHD
VHFXULW\ WDVNV FRQGXFWHG LQ FRQFHUW ZLWK EDVLF VWDELOLW\ RSHUDWLRQV WDVNV $IWHU PDMRU HQJDJHPHQWV
FRPPDQGHUVSXUVXHWKHHQHP\DQGGHQ\WKHPWKHDELOLW\WRSURWUDFWWKHFRQIOLFWRUFRQWLQXHUHVLVWDQFH8QGHU
WKHVH FRQGLWLRQV FRQVROLGDWLRQ DFWLYLWLHV FRQVLVW SULPDULO\ RI VHDUFK DQG DWWDFN DQG FRUGRQ DQG VHDUFK
RSHUDWLRQVWRLGHQWLI\DQGGHIHDWHQHP\IRUFHVDWWHPSWLQJWRHYDGHFDSWXUH&RPPDQGHUVPXVWFRQWURODQG

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

DFFRXQWIRUHDFKFDSWXUHGDQGNLOOHGHQHP\FRPEDWDQWDVZHOODVHQVXUHWKH\H[SORLWWKHLQIRUPDWLRQFROOHFWHG
IURP FRPEDWDQWV WR GULYH IXWXUH RSHUDWLRQV 6ROGLHUV0DULQHV FRQILVFDWH DQG SURSHUO\ GLVSRVH FDFKHG
ZHDSRQV DQG VXSSOLHV VR WKH\ FDQQRW EH XVHG WR SURORQJ WKH FRQIOLFW $IWHU WKH FHVVDWLRQ RI ODUJHVFDOH
FRPEDW FRPPDQGHUV GR QRW DEDQGRQ YLOODJHV DQG RWKHU SRSXODWLRQ FHQWHUV EXW LQVWHDG VHFXUH WKHP E\
DOORFDWLQJDWDVNRUJDQL]HGVHFXULW\IRUFHDEOHWRSURWHFWFLYLOLDQVIURPHQHP\KDUDVVPHQWDQGLQILOWUDWLRQ
 $IWHUUHPDLQLQJHQHP\IRUFHVDUHGHIHDWHGRSHUDWLRQVWRFRQVROLGDWHJDLQVLQWKHMXQJOHDUHJXLGHGE\
WZR IXQGDPHQWDOV FRQWURO WKH HVVHQWLDO DQG GLVWLQJXLVK FRPEDWDQWV IURP QRQFRPEDWDQWV &RQWUROOLQJ WKH
HVVHQWLDOJXLGHVFRPPDQGHUVE\KHOSLQJWKHPLGHQWLI\ZKDWPXVWEHVHFXUHGDQGLPSURYHGWRPDNHWDFWLFDO
JDLQVHQGXULQJ7KHMXQJOHLVRIWHQWRRODUJHDQGVSDUVHO\SRSXODWHGWRFRQVROLGDWHJDLQVDFURVVDQHQWLUH$2
,QVWHDGFRPPDQGHUVFRQVROLGDWHJDLQVE\GLUHFWLQJWKHLUIRUFHVDQGUHVRXUFHVDWNH\SRSXODWLRQFHQWHUVDQG
LQIUDVWUXFWXUH ,Q WKH MXQJOH WKHVH PD\ EH YLOODJHV SRUWV DLUILHOGV IRRG VWRUDJH VLWHV DQG NH\ EULGJHV RU
URDGV &RPPDQGHUV DOVR HQVXUH 6ROGLHUV0DULQHV SUDFWLFH UHVWUDLQW E\ FDUHIXOO\ GLVWLQJXLVKLQJ EHWZHHQ
FRPEDWDQWVDQGQRQFRPEDWDQWVHQHP\IRUFHVPD\DWWHPSWWREOHQGLQZLWKWKHORFDOSRSXODFHDQGWURRSV
PXVWWDNHHYHU\SUHFDXWLRQWRDYRLGLQDGYHUWHQWO\DWWDFNLQJQRQFRPEDWDQWV
 'HVSLWH WKH HPSKDVLV RQ DUHD VHFXULW\ FRPPDQGHUV FDQQRW QHJOHFW WKH PLQLPXP UHTXLUHG VWDELOLW\
WDVNVQHFHVVDU\WRUHWXUQDUHDVXQGHUWKHLUFRQWUROWRSUHKRVWLOLW\FRQGLWLRQV*LYHQWKHODFNRILQIUDVWUXFWXUH
DQG UXUDO QDWXUH RI PRVW MXQJOHV VWDELOLW\ HIIRUWV DUH RIWHQ OHVV LQWHQVLYH WKDQ LQ PRUH GHYHORSHG
HQYLURQPHQWV+RZHYHUDVVHVVLQJZKDWUHVRXUFHVDUHUHTXLUHGWRVWDELOL]HWKH$2DQGWKHQWUDQVSRUWLQJWKH
UHTXLVLWHLWHPVWRWKHSRLQWRIQHHGUHTXLUHVFDUHIXOSODQQLQJDQGDGGLWLRQDOWUDQVSRUWDWLRQDVVHWVWRRYHUFRPH
WKHMXQJOH¶VUHVWULFWLYHWHUUDLQ&RPPDQGHUVHPSOR\FLYLODIIDLUVXQLWVDQGZRUNZLWK+1RUORFDOOHDGHUVWR
LGHQWLI\DQGDGGUHVVWKHSRSXODWLRQ¶VFRQFHUQV7KH\DOVROHYHUDJH1*2VRU,*2VWKDWDUHIDPLOLDUZLWKWKH
DUHDWRGHWHUPLQHZKDWLVQHHGHGDQGKRZWKHMRLQWIRUFHFDQDLGRYHUDOOVWDELOL]DWLRQHIIRUWV2IWHQ UXUDO
DUHDVQHHGRQO\EDVLFRUUXGLPHQWDU\LQLWLDWLYHVWRUHVWRUHWRWKHLUSUHKRVWLOLW\FRQGLWLRQDQGWKHVHHIIRUWV
FDQVLPXOWDQHRXVO\VHUYHDVSRZHUIXOLQIRUPDWLRQRSHUDWLRQVWRJDUQHUVXSSRUWIRU86REMHFWLYHV
 8QLWVLQYROYHGLQWKHFORVHDUHDDQGLQFORVHFRPEDWGRQRWFRQGXFWFRQVROLGDWLRQRIJDLQVDFWLYLWLHV
$ VHSDUDWH PDQHXYHUIRUFHFRQGXFWVFRQVROLGDWLRQRIJDLQVDFWLYLWLHVLQWKH GHVLJQDWHG FRQVROLGDWLRQUHDU
DUHDVLQWKHMXQJOHHQYLURQPHQW
 7R FRQVROLGDWH JDLQV HIIHFWLYHO\ DQG HIILFLHQWO\ FRPPDQGHUV QHHG WR FOHDUO\ XQGHUVWDQG ERWK WKH
SXUSRVHRIWKHRSHUDWLRQDQGDOOSRWHQWLDOHQHP\FDSDELOLWLHVWRUHVLVW7KHFULWLFDODVVXPSWLRQIRUSODQQLQJLV
WKDWHQHP\IRUFHVZLOOXVHDOOPHDQVDWWKHLUGLVSRVDODQGVHHNQHZPHDQVWRSURWUDFWDFRQIOLFW,WLVWKH
VLPXOWDQHRXVH[SORLWDWLRQRIH[LVWLQJDGYDQWDJHDQGWKHUDSLGSXUVXLWRIUHPDLQLQJPHDQVRIUHVLVWDQFHWKDW
GHQ\DQHQHP\WKHDELOLW\WRSURORQJFRQIOLFWDIWHUWKHLQLWLDOHQHP\IRUFHVDUHGHIHDWHG7KLVH[SORLWDWLRQ
DQGSXUVXLWFDQLQYROYHPDQ\OLQHVRIHIIRUWRURSHUDWLRQVLQFOXGLQJ²
z 3K\VLFDOO\VHL]LQJVWRUDJHDUHDVFRQWDLQLQJZHDSRQVPXQLWLRQVDQGIXHOVHL]LQJVHUYHUIDUPV
UDGLRDQGWHOHYLVLRQVWDWLRQV VHL]LQJ EDUUDFNVDQGSROLFH VWDWLRQV VHL]LQJ NH\ WHUUDLQ VHFXULQJ
/2&VDQGSURYLGLQJIRUWKHVHFXULW\DQGFRQWLQXHGRSHUDWLRQRIHVVHQWLDOVHUYLFHVVXFKDVZDWHU
VHZHUWUDVKDQGHOHFWULFVHUYLFHV
z &RQWUROOLQJ+1RUHQHP\VHFXULW\DQGSROLFHIRUFHVWRLQFOXGHJDLQLQJDFFRXQWDELOLW\RIWKRVHQRW
DOUHDG\FDSWXUHG+1RUHQHP\VHFXULW\DQG SROLFHIRUFHVDUHXVHGWRPDLQWDLQRUGHUZKHUHYHU
SRVVLEOH
z 5DSLGO\FRQWUROOLQJSRSXODWLRQFHQWHUVWRHVWDEOLVKRUGHUDQGSUHYHQWORRWLQJULRWLQJRUXQUHVW
z 5DSLGDQGFRPSUHKHQVLYHXVHRILQIRUPDWLRQRSHUDWLRQVWRVKDSHSXEOLFRSLQLRQGLVFUHGLWHQHP\
QDUUDWLYHVDQGSURPRWHIULHQGO\QDUUDWLYHV
 &RPPDQGHUVFRQGXFWHVVHQWLDOVWDELOLW\WDVNVDQGIXQFWLRQVWRFRQVROLGDWHJDLQV&RPPDQGHUVPD\
WUDQVLWLRQHVVHQWLDOVWDELOLW\ WDVNVWRRWKHUIRUFHVRUDSSURSULDWHFLYLOLDQRUJDQL]DWLRQVLIWKH\ FDQSHUIRUP
WKHP)RUH[DPSOHVXIILFLHQW+1FLYLOLDQRUPLOLWDU\JRYHUQDQFHPD\H[LVWWRHQVXUHWKDWWKHSRSXODWLRQKDV
DGHTXDWHIRRGDQGPHGLFDOFDUH7KHUHDUHVSHFLILFSRUWLRQVRIWKHMXQJOHHQYLURQPHQWVXFKDVODUJHH[SDQVHV
RIUDLQIRUHVWVDQGVZDPSVZKHUHFRQVROLGDWLRQRIJDLQVPD\RQO\FRQVLVWRIGHQ\LQJWKHHQHP\DFFHVVRU
UHIXJHLQWKHVHDUHDV
 &RPPDQGHUVRIWHQUHTXLUHNH\HQDEOHUVWRDGHTXDWHO\FRQGXFWFRQVROLGDWLRQRIJDLQV8QLWVPD\QHHG
HQJLQHHUV WR LPSURYH URXWHV DQG UHEXLOG EDVLF LQIUDVWUXFWXUH RU KRXVLQJ 0LOLWDU\ SROLFH DFW DV D IRUFH
PXOWLSOLHUFDSDEOHRIFRQGXFWLQJSRSXODWLRQDQGUHVRXUFHVFRQWURO35&WKURXJKRXWWKHFRQVROLGDWLRQDUHD

6HSWHPEHU $730&73& 

&KDSWHU

0LOLWDU\SROLFHVXSSRUWWRSRSXODWLRQFRQWUROFRQVLVWVRIHQVXULQJWKDWGLVORFDWHGFLYLOLDQVGRQRWLQWHUIHUH
ZLWKRQJRLQJRSHUDWLRQVWRFRQVROLGDWHJDLQV2QFHRIIHQVLYHRSHUDWLRQVHQG PLOLWDU\SROLFHKHOSFRQWURODQG
GLUHFWLQGLJHQRXVSHUVRQVDQGUHIXJHHVPRYHEDFNWRWKHLUKRPHV0LOLWDU\SROLFHSHUIRUPUHVRXUFHFRQWURO
E\ VHFXULQJ QDWXUDO DQG PDQPDGH PDWHULHO UHVRXUFHV WR GHQ\ WKH HQHP\ DFFHVV SUHYHQW ORRWLQJ RU
H[SORLWDWLRQDQGSUHVHUYHYLWDOUHVRXUFHVIRUIXWXUHUHTXLUHPHQWV6HHFKDSWHUDQG$73IRUPRUH
LQIRUPDWLRQRQ35&
 $ FLYLOLDQ SRSXODWLRQ¶V SHUFHSWLRQ RI OHJLWLPDF\ DIIHFWV KRZ LW UHDFWV WR PLOLWDU\ IRUFHV )RUFHV
HVWDEOLVKFUHGLELOLW\DQGOHJLWLPDF\ZLWKD ORFDOSRSXODWLRQLQWKHZD\WKH\FRQGXFWRSHUDWLRQV$GYHUVDULHV
RIWHQ VHHN OHJLWLPDF\ E\ DVVXPLQJ UROHV WKDW JDLQ IDYRU ZLWK WKH SRSXODWLRQ VXFK DV UHVROYLQJ GLVSXWHV
LQIOXHQFLQJNH\VRFLDOOHDGHUVSURYLGLQJHVVHQWLDOVHUYLFHVRUSURYLGLQJSURWHFWLRQIURPFULPLQDOHOHPHQWV
&RQVROLGDWLRQ RI JDLQV DFWLYLWLHV PD\ XOWLPDWHO\ GHFLGH ZKR SRVVHVVHV WKH DELOLW\ WR FRPSHO FRQWURO
LQIOXHQFH DQG JDWKHU VXSSRUW IURP D SRSXODWLRQ 7KHUHIRUH WKURXJKRXW MXQJOH RSHUDWLRQV $UP\0DULQH
&RUSV OHDGHUV KDYH OHJDO DQG PRUDO UHVSRQVLELOLWLHV WR HVWDEOLVK DUHD VHFXULW\ DQG UHVWRUH VHUYLFHV ZKLOH
FRXQWHULQJWKHHIIRUWVRIWKRVHZRUNLQJDJDLQVWIULHQGO\JRDOV6HH-3$'3DQG0&:3IRU
IXUWKHULQIRUPDWLRQRQOHJLWLPDF\DQGRWKHUVWDELOLW\FRQVLGHUDWLRQV

&2162/,'$7,21$5($)5$0(:25.
 'XULQJODUJHVFDOHFRPEDWRSHUDWLRQVDFRQVROLGDWLRQDUHDIUDPHZRUNGHVLJQDWHVWKHSRUWLRQRIWKH
ODQG FRPPDQGHU¶V $2 WR IDFLOLWDWH IUHHGRP RI DFWLRQ FRQVROLGDWH JDLQV WKURXJK GHFLVLYH DFWLRQ DQG VHW
FRQGLWLRQVWRWUDQVLWLRQWKH$2WRIROORZRQIRUFHVRURWKHUOHJLWLPDWHDXWKRULWLHV,QWKHFRQVROLGDWLRQDUHD
IRUFHVKDYHHVWDEOLVKHGDOHYHORIFRQWUROVRWKH\FDQSHUIRUPWDVNVWRFRQVROLGDWHJDLQV7KHFRQVROLGDWLRQ
DUHD PD\ RU PD\ QRW FRQWDLQ VXSSRUW DUHDV IRFXVHG RQ VXSSRUW WR IRUZDUG GHSOR\HG XQLWV $VVLJQLQJ D
FRQVROLGDWLRQDUHDWRDVXERUGLQDWHKHDGTXDUWHUVDOORZVWKHKLJKHUHFKHORQKHDGTXDUWHUVWRDGHTXDWHO\IRFXV
UHVRXUFHVRQFORVHRSHUDWLRQVDQGDOORZVDVXERUGLQDWHKHDGTXDUWHUVWRPDNHSURJUHVVWRZDUGVFRQVROLGDWLQJ
JDLQVDQGDFKLHYLQJGHVLUHGREMHFWLYHV,WLVWKHILUVWVWHSWRZDUGVWKHRYHUDOOFRQVROLGDWLRQRIJDLQVGXULQJ
ODUJHVFDOHFRPEDWRSHUDWLRQV
 &RPPDQGHUVVKRXOGSODQIRUDQGDVVLJQIRUFHVWRWKHFRQVROLGDWLRQDUHDDVVRRQDVSRVVLEOHWRDOORZ
FORVHFRPEDWIRUFHVWRIRFXVRQRSHUDWLRQVLQWKHFORVHDQGGHHSDUHDV$NH\FRPSRQHQWLVUHTXHVWLQJFULWLFDO
DXWKRULWLHVWRHQVXUHHIIHFWLYHDSSOLFDWLRQRIVXFKWKLQJVDV52(GLUHFWOLDLVRQF\EHUVSDFHPLVVLRQVDQG
LQIRUPDWLRQRSHUDWLRQV%\VPRRWKO\WUDQVLWLRQLQJFRQVROLGDWLRQDUHDVWRIROORZRQIRUFHVDVFORVHDUHDVDUH
VHFXUHGWKHFRPPDQGHUHQDEOHVFORVHFRPEDWIRUFHVWRPDLQWDLQWKHLQLWLDWLYHDQGPDQHXYHUZLWKRXWORVVRI
PRPHQWXP

Note.$FRQVROLGDWLRQDUHDUHTXLUHVDGGLWLRQDOFRPEDWSRZHUDQGLVQRWLQWHQGHGWRGUDZIRUFHV
IURPWKHFORVHRUGHHSDUHD

&2162/,'$7,212)*$,16$&7,9,7,(6
 1RUPDOO\PRVWRIDXQLW¶VHIIRUWVIRFXVRQFRQGXFWLQJDUHDVHFXULW\UHDUDUHDVHFXULW\DWWKHRQVHWRI
RSHUDWLRQVWRFRQVROLGDWHJDLQVLQWKHMXQJOH$UHDVHFXULW\UHDUDUHDVHFXULW\LQFOXGHVDFWLYLWLHVWRSURWHFW
IULHQGO\IRUFHVLQVWDOODWLRQVDQGURXWHVZLWKLQDVSHFLILFDUHD7KHSURWHFWHGIRUFHVDQGLQVWDOODWLRQVPD\EH
WKHFLYLOLDQSRSXODWLRQFLYLOLQVWLWXWLRQVDQGFLYLOLDQLQIUDVWUXFWXUH7KHZHLJKWRIHIIRUWVKLIWVWRZDUGWKH
SHUIRUPDQFH RI VWDELOLW\ WDVNV DV WKH VHFXULW\ HQYLURQPHQW LPSURYHV 8OWLPDWHO\ D FRPPDQGHU WUDQVIHUV
FRQWURORIWKHDUHDWRDOHJLWLPDWHFLYLODXWKRULW\&RPPDQGHUVVKRXOGFRQVLGHUWKHSURJUHVVLRQRIFDSDELOLWLHV
ZLWKUHVSHFWWRIRUFHVWUXFWXUHRYHUWLPHDVDUHDVHFXULW\UHDUDUHDVHFXULW\DQGPLQLPDOHVVHQWLDOVWDELOLW\
REMHFWLYHVJLYH ZD\WRPRUHLQWHQVLYHVWDELOLW\RSHUDWLRQVWDVNV7KLVXQLTXHWUDQVLWLRQZLOOOLNHO\UHTXLUH
DGGLWLRQDO IRUFH WDLORULQJ WR HQVXUH HQRXJK HQJLQHHUV DQG FLYLO DIIDLUV XQLWV DUH DYDLODEOH ZKLOH UHOHDVLQJ
VHFXULW\IRUFHVVXFKDVPLOLWDU\SROLFHIRURSHUDWLRQVHOVHZKHUH6HHFKDSWHUIRUPRUHGHWDLOHGLQIRUPDWLRQ
RQVWDELOLW\RSHUDWLRQVLQWKHMXQJOH
 Area security LV D W\SH RI VHFXULW\ RSHUDWLRQ FRQGXFWHG WR SURWHFW IULHQGO\ IRUFHV OLQHV RI
FRPPXQLFDWLRQVDQGDFWLYLWLHVZLWKLQDVSHFLILFDUHD$'37KHVHFXULW\IRUFHPD\EHSURWHFWLQJWKH
FLYLOLDQSRSXODWLRQFLYLOLQVWLWXWLRQVRUFLYLOLDQLQIUDVWUXFWXUH$UHDVWRVHFXUHPD\UDQJHIURPVSHFLILFSRLQWV

 $730&73& 6HSWHPEHU

 -XQJOH2IIHQVLYH2SHUDWLRQV

IRU H[DPSOH EULGJHV DQG GHILOHV DQG HVVHQWLDO LQIUDVWUXFWXUH LQFOXGLQJ ZDWHU WUHDWPHQW DQG HOHFWULFDO
JHQHUDWLRQ IDFLOLWLHV WR ODUJH FLYLOLDQ SRSXODWLRQ FHQWHUV DQG WKHLU DGMDFHQW DUHDV 3RSXODWLRQFHQWULF DUHD
VHFXULW\PLVVLRQVDUHFRPPRQDFURVVWKHUDQJHRIPLOLWDU\RSHUDWLRQVLQWKHMXQJOHHQYLURQPHQWEXWWKH\DUH
DUHTXLUHPHQWGXULQJLUUHJXODUZDUIDUH3RSXODWLRQFHQWULFDUHDVHFXULW\W\SLFDOO\FRPELQHVDVSHFWVRIWKH
DUHD GHIHQVH DQG WKH RIIHQVH OLNH VHDUFK DQG DWWDFN DQG FRUGRQ DQG VHDUFK WR HOLPLQDWH LQWHUQDO GHIHQVH
WKUHDWV
 7KH0DULQH&RUSVFRQGXFWVUHDUDUHDVHFXULW\ZKLFKLQFOXGHVPHDVXUHVWDNHQSULRUWRGXULQJDQGRU
DIWHUDQHQHP\DLUERUQHDWWDFNVDERWDJHLQILOWUDWLRQJXHUULOODDFWLRQDQGRULQLWLDWLRQRISV\FKRORJLFDORU
SURSDJDQGDZDUIDUHWRPLQLPL]HWKHHIIHFWVWKHUHRI7KH0DULQHDLUJURXQGWDVNIRUFHUHDUDUHDLVGHILQHGDV
WKDWDUHDH[WHQGLQJUHDUZDUGIURPWKHUHDUERXQGDU\RIWKHJURXQGFRPEDWHOHPHQWDQGWKH0DULQHDLUJURXQG
WDVNIRUFHUHDUERXQGDU\
 $UHDVHFXULW\IRUFHVLQWKHMXQJOHUHWDLQUHDGLQHVVRYHUORQJSHULRGVZLWKLQWHUPLWWHQWHQHP\FRQWDFW
7KHHQHP\QRUPDOO\WULHVWRDYRLGHQJDJLQJIULHQGO\IRUFHVH[FHSWRQIDYRUDEOHWHUPV)RUFHVSHUIRUPLQJ
DUHDVHFXULW\DYRLGGHYHORSLQJDIDOVHVHQVHRIVHFXULW\HYHQLIWKHHQHP\DSSHDUVWRKDYHFHDVHGRSHUDWLRQV
LQDSDUWLFXODUDUHD&RPPDQGHUVDVVXPHWKDWWKHHQHP\FRQWLQXRXVO\REVHUYHVIULHQGO\RSHUDWLRQVDQGVHHNV
DQRSSRUWXQLW\WRDWWDFNZKHQLWIHHOVLWKDVWKHDGYDQWDJH

6HSWHPEHU $730&73& 



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 &KDSWHU
-XQJOH'HIHQVLYH2SHUDWLRQV

7KLVFKDSWHURXWOLQHVWKHSXUSRVHDQGFKDUDFWHULVWLFVRIMXQJOHGHIHQVLYHRSHUDWLRQV,W
DOVRSURYLGHVLQIRUPDWLRQRQWKHFKDUDFWHULVWLFVRIWKHGHIHQVHDQGIRUPVRIWKHGHIHQVH
DSSOLFDEOHWRMXQJOHRSHUDWLRQV

'()(16,9(23(5$7,216
 $ defensive operationLVDQ RSHUDWLRQWRGHIHDWDQHQHP\ DWWDFN JDLQWLPHHFRQRPL]H IRUFHVDQG
GHYHORS FRQGLWLRQV IDYRUDEOH IRU RIIHQVLYH RU VWDELOLW\ RSHUDWLRQV $'3  Defensive operations DUH
RSHUDWLRQV FRQGXFWHG WR GHIHDW DQ HQHP\ DWWDFN JDLQ WLPH HFRQRPL]H IRUFHV DQG GHYHORS FRQGLWLRQV
IDYRUDEOHWRRIIHQVLYHDQGVWDELOLW\RSHUDWLRQV7KHWKUHHW\SHVRIGHIHQVLYHRSHUDWLRQVDUHDUHDPRELOHDQG
UHWURJUDGH0&53+RZHYHUWKHSHUIRUPDQFHRIGHIHQVLYHRSHUDWLRQVDORQHQRUPDOO\FDQQRWDFKLHYH
DGHFLVLRQ'HIHQVLYHRSHUDWLRQVFUHDWHFRQGLWLRQVIRUDFRXQWHURIIHQVLYHWKDWDOORZV$UP\0DULQH&RUSV
IRUFHVWRUHJDLQWKHLQLWLDWLYH2WKHUUHDVRQVIRUSHUIRUPLQJGHIHQVLYHRSHUDWLRQVLQFOXGH²
z 5HWDLQLQJGHFLVLYHWHUUDLQRUGHQ\LQJDYLWDODUHDWRDQHQHP\
z &RQGXFWLQJ GHIHQVLYH FRYHULQJ IRUFH RSHUDWLRQV WR SURWHFW IRUFHV HOVHZKHUH LQ WKH WKHDWHU RI
RSHUDWLRQV
z $WWULWLQJRUIL[LQJDQHQHP\DVDSUHOXGHWRRIIHQVLYHRSHUDWLRQV
z &RXQWHULQJDQHQHP\DWWDFN
z )RUFLQJWKHHQHP\WRFRQFHQWUDWHWKHLUIRUFHV
z )UHHLQJIULHQGO\IRUFHVLQRQHDUHDIRURIIHQVLYHRSHUDWLRQVHOVHZKHUH

 7KH GHIHQVH SURYLGHV WLPH IRU D FRPPDQGHU WR EXLOG FRPEDW SRZHU DQG HVWDEOLVK FRQGLWLRQV WR
WUDQVLWLRQWRWKHRIIHQVH$OWKRXJKVWURQJHUWKDQWKH RIIHQVHDGHIHQGHUPD\EHGLVDGYDQWDJHGHDUO\LQD
FDPSDLJQLIWKHHQHP\FDQGHWHUPLQHZKHQDQGZKHUHWRDWWDFN,QLPPDWXUHWKHDWHUVWKHGHIHQGHUPD\ODFN
WKHUHVRXUFHVWRSUHSDUHIRUDQDWWDFN$VXFFHVVIXOGHIHQVHLQWHJUDWHVILUHVPDQHXYHUDLUDQGPLVVLOHGHIHQVH
DQGFRXQWHUPRELOLW\HIIHFWVWRGHJUDGHGHOD\RUGHIHDWWKHHQHP\ZKLOHSURYLGLQJWKHGHIHQGHUHQRXJKWLPH
DQGVSDFHWREXLOGFRPEDWSRZHU
 &RPPDQGHUVKDYHVHYHUDOFRQVLGHUDWLRQVZKHQSODQQLQJDGHIHQVH.H\VWRDVXFFHVVIXOGHIHQVHDUH²
z 7LPHO\GHWHFWLRQRIWKHHQHP\¶V&2$
z &RQFHQWUDWLRQRIHIIHFWVDWWKHGHFLVLYHWLPHDQGSODFH
z 'HSWK
z 6HFXULW\IRUZDUGIODQNDUHDDQGORFDOVHFXULW\LQVXSSRUWDUHDV
z (QJDJHPHQWDUHDGHYHORSPHQWVKDSHDQGH[SORLWWHUUDLQDGYDQWDJHRXVO\
z 3UHSDUDWLRQ
z )OH[LELOLW\
z 'HVLJQDWLRQFRPSRVLWLRQORFDWLRQDQGHPSOR\PHQWRIWKHUHVHUYH
z 7LPHO\UHVXPSWLRQRIWKHRIIHQVH

 :KLOH FRQGXFWLQJ D GHIHQVH FRPPDQGHUV LQWHJUDWH WKH HOHPHQWV RI GHFLVLYH DFWLRQ E\ H[HFXWLQJ
RIIHQVLYH VKDSLQJ RSHUDWLRQV DFURVV DOO GRPDLQV 2IIHQVLYH VKDSLQJ RSHUDWLRQV PD\ WDUJHW HQHP\ IRUFHV
HFKHORQHG LQ GHSWK RU WKHLU VXVWDLQPHQW FDSDELOLWLHV 6SRLOLQJ DWWDFNV FDQ XSVHW HQHP\ SUHSDUDWLRQV E\
GLVRUJDQL]LQJ VXERUGLQDWH FRPSRQHQWV RI WKH HQHP\¶V SODQ 7KH FRPPDQGHU PD\ H[HFXWH RIIHQVLYH
F\EHUVSDFH(:RULQIRUPDWLRQRSHUDWLRQVWLPHGWRGLVUXSWHQHP\FRPPDQGDQGFRQWURODWFULWLFDOSKDVHV
LQ WKH RSHUDWLRQ 'XULQJ MXQJOH GHIHQVLYH RSHUDWLRQV FRPPDQGHUV PD\ DPEXVK HQHP\ SDWUROV DV WKH\

6HSWHPEHU $730&73& 

&KDSWHU

SRVLWLRQIRUWKHDWWDFN7KHVHVKDSLQJDFWLRQVVHWFRQGLWLRQVIRUGHFLVLYHDFWLRQVXFKDV WKHGHIHDWRIWKH
HQHP\¶VPDLQHIIRUWE\DFRXQWHUDWWDFNWKDWHQDEOHVWKHIULHQGO\IRUFHWRWUDQVLWLRQWRRIIHQVLYHRSHUDWLRQV
 'HIHQVLYHRSHUDWLRQVLQWKHMXQJOHUHTXLUH VSHFLDOSODQQLQJFRQVLGHUDWLRQVWRDFFRXQW IRUWKHGHQVH
IROLDJHODFNRI/2&VDQGUHVWULFWLYHWHUUDLQ&KDOOHQJHVWRGHIHQVLYHRSHUDWLRQVLQWKHMXQJOHLQFOXGH
z &RQGHQVHG UHDFWLRQ WLPH 7KLFN IROLDJH DQG PRXQWDLQRXV WHUUDLQ FDQ PDVN WKH DWWDFNHU¶V
PRYHPHQWDQGPDNHLWPRUHGLIILFXOWWRGHWHUPLQHWKHGLUHFWLRQDQGWLPLQJRIDQHQHP\DWWDFN
z 6ORZHUPRYHPHQW0RELOLW\FKDOOHQJHVPDNHLWPRUHGLIILFXOWWRUHLQIRUFHXQLWVRUPRYHEHWZHHQ
VXEVHTXHQWEDWWOHSRVLWLRQV
z &RQGHQVHG $2V /LPLWHG YLVLELOLW\ DQG ILHOGV RI ILUH UHTXLUH EDWWOH SRVLWLRQV EH SODFHG FORVH
WRJHWKHUWRSURYLGHPXWXDOVXSSRUW
z /LPLWHGVWDQGRII'HQVHYHJHWDWLRQQHFHVVLWDWHVHQJDJHPHQWVDWFORVHSUR[LPLW\DQGFDQSUHYHQW
XQLWVIURPHIIHFWLYHO\HPSOR\LQJGLUHFWILUHLQWRHQJDJHPHQWDUHDVDWPD[LPXPHIIHFWLYHUDQJHV
z ,QGLUHFWILUHFRQVWUDLQWV(QJDJHPHQWVDWFORVHSUR[LPLW\FDQFRQVWUDLQRUFRPSOHWHO\UHVWULFWWKH
XVHRILQGLUHFWILUH
z &KDOOHQJHVWRGLUHFWILUHHQJDJHPHQWV7KLFNIROLDJHDQGFRPSOH[WHUUDLQOLPLWILHOGVRIILUHDQG
LQFUHDVHGHDGVSDFH
 8QLWV FDQ FRQGXFW GHIHQVLYH RSHUDWLRQV GXULQJ DQ\ SKDVH RI D FDPSDLJQ 7KH\ PD\ IROORZ DIWHU D
VXFFHVVIXORIIHQVHWRHQDEOHFRQVROLGDWLRQRIJDLQVRUHDUO\LQDFDPSDLJQWRUHWDLQRUSURWHFWWKHLQIUDVWUXFWXUH
QHFHVVDU\WRPRYHDGGLWLRQDOIRUFHVLQWRWKHWKHDWHURIRSHUDWLRQV([DPSOHVRINH\ORFDWLRQVRULQIUDVWUXFWXUH
WKDWUHTXLUHSURWHFWLRQLQFOXGH
z &ULWLFDOLQIUDVWUXFWXUHVXFKDVSRUWVNH\ORJLVWLFLQVWDOODWLRQVURDGVUDLOURDGVEULGJHVDLUILHOGV
z 1DWXUDOIHDWXUHVVXFKDVPRXQWDLQSDVVHVZDWHUZD\VRURWKHUNH\WHUUDLQ

 6RPHWLPHVDXQLWPXVWHVWDEOLVKDGHIHQVHZLWKPLQLPXPSODQQLQJWLPH7KLVQRUPDOO\RFFXUVZKHQ
DQDWWDFNVWDOOVDWGXVNZKHQWKHXQLWUHPDLQVLQFRQWDFWZLWKWKHHQHP\DQGKDVQRQLJKWDWWDFNSODQQHGRU
ZKHQDXQLWQHHGVWRVHFXUHDQLQWHUPHGLDWHREMHFWLYHEHIRUHFRQWLQXLQJWKHDWWDFN7KHVHVLWXDWLRQV RIWHQ
SURYHPRUHGDQJHURXVLQWKHMXQJOHVLQFHWKHUHVWULFWLYHWHUUDLQDQGGHQVHIROLDJHHQDEOHWKHDWWDFNLQJIRUFH
WRFDSLWDOL]HRQWKHHOHPHQWRIVXUSULVH

'()(16,9(&+$5$&7(5,67,&6
 &KDUDFWHULVWLFV RI WKH GHIHQVH LQFOXGH GLVUXSWLRQ IOH[LELOLW\ PDQHXYHU PDVV DQG FRQFHQWUDWLRQ
RSHUDWLRQVLQGHSWKSUHSDUDWLRQDQGVHFXULW\7KHGHIHQVLYHSODQLQFRUSRUDWHVWKHVHFKDUDFWHULVWLFVWRGLVUXSW
DQGDWWULWDQDWWDFNHUWKURXJKRXWWKHGHSWKRIWKHHQHP\IRUPDWLRQWRHVWDEOLVKFRQGLWLRQVIRUWKHWUDQVLWLRQ
WRRIIHQVLYHRSHUDWLRQV

',65837,21
 'HIHQGHUV GLVUXSW DWWDFNV E\ HPSOR\LQJ DFWLRQV WKDW IUXVWUDWH WKH HQHP\¶V DELOLW\ WR FRRUGLQDWH RU
V\QFKURQL]H RSHUDWLRQV 'LVUXSWLRQ DFWLRQV LQFOXGH GHFHLYLQJ RU GHVWUR\LQJ HQHP\ UHFRQQDLVVDQFH IRUFHV
EUHDNLQJXSFRPEDWIRUPDWLRQVVHSDUDWLQJHFKHORQVDQGLPSHGLQJWKHHQHP\¶VDELOLW\WRV\QFKURQL]HDQG
HPSOR\FRPELQHGDUPV'HIHQGHUVFRQGXFWVSRLOLQJDWWDFNVWRGHQ\DQHQHP\WKHDELOLW\WRIRFXVFRPEDW
SRZHU7KH\FRXQWHUDWWDFNWRGHQ\WKHHQHP\WKHDELOLW\WRH[SORLWDQ\JDLQV'HIHQGHUVHPSOR\(:DQG
F\EHUVSDFHDVVHWVLQDGGLWLRQWROHWKDOV\VWHPVWRWDUJHWHQHP\FRPPDQGDQGFRQWUROV\VWHPVDQGGLVUXSW
HQHP\IRUFHVLQGHSWKE\LVRODWLQJIRUZDUGHFKHORQVIURPWKHLUKLJKHUKHDGTXDUWHUV
 &RPPDQGHUV XVH D FRPELQDWLRQ RI DPEXVKHV LQGLUHFW ILUH DQG VSRLOLQJ DWWDFNV WR GLVUXSW HQHP\
RIIHQVLYH RSHUDWLRQV LQ WKH MXQJOH :KHQ HQHP\ IRUPDWLRQV FDQQRW EH ORFDWHG FRPPDQGHUV GLUHFW WKHVH
RSHUDWLRQVWRZDUGVWKHOLPLWHGQXPEHURI/2&VDYDLODEOHLQWKH$2WKDWFRXOGEHXVHGE\WKHHQHP\WREXLOG
FRPEDWSRZHU6HYHULQJWKHHQHP\¶V/2&VDQGGHSULYLQJWKHHQHP\RIWKHWURRSVDQGVXSSOLHVQHFHVVDU\WR
FRQWLQXHRIIHQVLYHRSHUDWLRQVFDQVHYHUHO\GLVUXSWWKHHQHP\¶VWHPSR

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

)/(;,%,/,7<
 7KHGHIHQVHUHTXLUHVIOH[LEOHSODQVWKDWDQWLFLSDWHHQHP\DFWLRQVDQGDOORFDWHUHVRXUFHVDFFRUGLQJO\
&RPPDQGHUVVKLIWWKHPDLQHIIRUWDVUHTXLUHG7KH\SODQEDWWOHSRVLWLRQVLQGHSWKDQGWKHXVHRIUHVHUYHVLQ
VSRLOLQJDWWDFNVDQGFRXQWHUDWWDFNV
 *LYHQWKHQRQFRQWLJXRXVQDWXUHRIMXQJOHRSHUDWLRQVFRPPDQGHUVEXLOGIOH[LELOLW\LQWRWKHGHIHQVHE\
UHWDLQLQJDKLJKO\PRELOHUHVHUYHFDSDEOHRIUHVSRQGLQJWRHQHP\DWWDFNV,ISRVVLEOHWKHUHVHUYHLVDLUPRELOH
RU DLU DVVDXOW FDSDEOH LQ RUGHU WRRYHUFRPH WKH PRELOLW\ UHVWULFWLRQV LQKHUHQW LQ PRVW MXQJOHV $LU DVVDXOW
IRUFHV SURYLGH WKH FRPPDQGHU ZLWK D IOH[LEOH UDSLG UHVSRQVH RQFH WKH HQHP\¶V VFKHPH RI PDQHXYHU LV
GHWHUPLQHG

0$1(89(5
 0DQHXYHUDOORZVDGHIHQGHUWRDFKLHYHDQGH[SORLWDSRVLWLRQRIDGYDQWDJHRYHUDQHQHP\'HIHQGLQJ
IRUFHV DUH QRW VWDWLF DQG LQVWHDG VHHN RSSRUWXQLWLHV WR PDQHXYHU DJDLQVW WKH DWWDFNLQJ IRUFH7KH\ DYRLG
EHFRPLQJIL[HGDQGXVHYDULRXVEDWWOHSRVLWLRQVWRFRQGXFWRSHUDWLRQVLQGHSWK
 %HFDXVH PRELOLW\LVOLPLWHGDQG$2V DUHRIWHQQRQFRQWLJXRXVFRPPDQGHUVFDUHIXOO\FRQVLGHUKRZ
VXERUGLQDWHIRUFHVFDQPXWXDOO\VXSSRUWHDFKRWKHUGXULQJGHIHQVLYHRSHUDWLRQVLQWKHMXQJOH&RPPDQGHUV
VWXG\WKHWHUUDLQDQGDVVLJQVXERUGLQDWH$2VWKDWSHUPLWPDQHXYHULQJIRUFHVIURPRQHORFDWLRQWRDQRWKHU,I
SUHH[LVWLQJ/2&VGRQRWVXSSRUWWKHGHIHQVLYHSODQRUVFKHPHRIPDQHXYHUFRPPDQGHUVXVHHQJLQHHUVWR
FOHDUSDWKVDQGWUDLOVEHWZHHQXQLWV+RZHYHUWKHVHQHZ/2&VVKRXOGQRWEHWUD\WKHORFDWLRQRIIULHQGO\
IRUFHVRUWKHIULHQGO\VFKHPHRIPDQHXYHU

0$66$1'&21&(175$7,21
 'HIHQGHUVVHHNWRPDVVDQGFRQFHQWUDWHWKHHIIHFWVRIRYHUZKHOPLQJFRPEDWSRZHUWRVXSSRUWWKHLU
GHFLVLYHRSHUDWLRQV'HIHQGLQJFRPPDQGHUVPD\VXUUHQGHUJURXQGWRJDLQWLPHWRFRQFHQWUDWHFRPEDWSRZHU
'XULQJMXQJOHRSHUDWLRQVPDVVDQGFRQFHQWUDWLRQFDQRIWHQRQO\EHDFKLHYHGORFDOO\DQGZLWKWKHXVHRID
KLJKO\ PRELOH UHVHUYH 7R DFFRPSOLVK WKLV FRPPDQGHUV SRVLWLRQ WKH UHVHUYH ZKHUH LW FDQ EHVW OHYHUDJH
LQWHULRUOLQHVWRUHVSRQGDQGGHIHDWWKHHQHP\¶VGHFLVLYHRSHUDWLRQ
 &RPPDQGHUVGHVLJQDWHUHWDLQDQGZKHQQHFHVVDU\UHFRQVWLWXWHDUHVHUYH7KH\HPSOR\WKHLUUHVHUYH
WR H[SORLW FRXQWHUDWWDFN RSSRUWXQLWLHV UHJDLQ ORFDO VXSHULRULW\ SUHVHUYH WKH LQWHJULW\ RI WKH GHIHQVH DQG
SUHYHQW FXOPLQDWLRQ 7KH\ UHFRQVWLWXWH WKHLU UHVHUYH IURP RWKHU IRUFHV RQFH LW LV FRPPLWWHG 7KH ODUJH
QRQFRQWLJXRXV $2V FKDUDFWHULVWLF RI MXQJOH RSHUDWLRQV PD\ UHTXLUH WKH FRPPDQGHU FRQGXFW HFRQRP\ RI
IRUFHRSHUDWLRQVLQOHVVWKUHDWHQHGDUHDVLQRUGHUWRFRQVWLWXWHDUHVHUYHODUJHHQRXJKWRFRQFHQWUDWHIRUFHVDW
WKHGHFLVLYHSRLQW

23(5$7,216,1'(37+
 Operations in depthDUHWKHVLPXOWDQHRXVDSSOLFDWLRQRIFRPEDWSRZHUWKURXJKRXWDQDUHDRIRSHUDWLRQV
$'32SHUDWLRQVLQGHSWKFDQEHERWKRIIHQVLYHDQGGHIHQVLYHLQQDWXUH2IIHQVLYHRSHUDWLRQVLQGHSWK
VHW FRQGLWLRQV E\ GHVWUR\LQJ RU GLVUXSWLQJ HQHP\ ORQJUDQJH ILUHV DLU DQG PLVVLOH GHIHQVH VXVWDLQPHQW
ORJLVWLFVDQGFRPPDQGDQGFRQWURODFURVVPXOWLSOHHFKHORQV'HIHQVLYHRSHUDWLRQVLQGHSWKHPSOR\DOWHUQDWH
DQGVXEVHTXHQWEDWWOHSRVLWLRQVWRIDFLOLWDWHIOH[LELOLW\DQGKDVWHQWKHHQHP\¶VFXOPLQDWLRQ2SHUDWLRQVLQ
GHSWK SUHYHQW WKH HQHP\ IURP PDLQWDLQLQJ WKH PRPHQWXP RI DQ DWWDFN &RPPDQGHUV SODQ GHIHQVLYH
RSHUDWLRQVLQGHSWKE\HVWDEOLVKLQJDVHFXULW\DUHDDQGDPDLQEDWWOHDUHD$ security areaLVWKDWDUHDWKDW
RFFXSLHG E\ D XQLW¶V VHFXULW\ HOHPHQWV DQG LQFOXGHV WKH DUHDV RI LQIOXHQFH RI WKRVH VHFXULW\ HOHPHQWV
$'3$ security areaLVWKHDUHDWKDWEHJLQVDWWKHIRUZDUGHGJHRIWKHEDWWOHDUHDDQGH[WHQGVDVIDU
WR WKH IURQW DQG IODQNV DV VHFXULW\ IRUFHV DUH GHSOR\HG QRUPDOO\ WR WKH IRUZDUG ERXQGDU\ RI WKH DUHD RI
RSHUDWLRQV)RUFHVLQWKHVHFXULW\DUHDFRQGXFWUHFRQQDLVVDQFHWRIXUQLVKLQIRUPDWLRQRQWKHHQHP\DQGWR
GHOD\GHFHLYHDQGGLVUXSWWKHHQHP\0&537KHmain battle areaLVWKHDUHDZKHUHWKHFRPPDQGHU
LQWHQGVWRGHSOR\WKHEXONRIWKHXQLW¶VFRPEDWSRZHUDQGFRQGXFWGHFLVLYHRSHUDWLRQVWRGHIHDWDQDWWDFNLQJ
HQHP\$'37KHmain battle areaLVWKDWSRUWLRQRIWKHEDWWOHVSDFHLQZKLFKWKHFRPPDQGHUFRQGXFWV
FORVHRSHUDWLRQVWRGHIHDWWKHHQHP\1RUPDOO\WKHPDLQEDWWOHDUHDH[WHQGVUHDUZDUGIURPWKHIRUZDUGHGJH
RIWKHEDWWOHDUHDWRWKHUHDUERXQGDU\RIWKHFRPPDQG¶VVXERUGLQDWHXQLWV0&53

6HSWHPEHU $730&73& 

&KDSWHU

 &RQGXFWLQJRSHUDWLRQVLQGHSWKLQWKHMXQJOHRIWHQUHTXLUHVPRGLI\LQJ773HVSHFLDOO\LQWKHVHFXULW\
DUHD,QVWHDGRIFRPPLWWLQJODUJHIRUPDWLRQVWRUHFRQQDLVVDQFHRSHUDWLRQVLQWKHVHFXULW\DUHDFRPPDQGHUV
LQVWHDGXVHGLVPRXQWHGOLJKWLQIDQWU\DQGFDYDOU\WHDPVWRSDWURODQGVFUHHQDORQJOLNHO\HQHP\DYHQXHVRI
DSSURDFK7KHVHIRUFHVFROOHFWLQIRUPDWLRQRQHQHP\PRYHPHQWVGLVSRVLWLRQDQGFRPSRVLWLRQWRDVVLVWWKH
FRPPDQGHULQGHWHUPLQLQJWKHHQHP\VFKHPHRIPDQHXYHUDQGFRXUVHRIDFWLRQ7KH\KDUDVVWKHHQHP\WR
GLVUXSW WKHLU SUHSDUDWLRQV EXW PXVW PDLQWDLQ D PRELOLW\ DGYDQWDJH RYHU HQHP\ IRUFHV WR DYRLG EHFRPLQJ
GHFLVLYHO\HQJDJHG

35(3$5$7,21
 'HIHQGHUVDUULYHLQWKHLU$2VEHIRUHWKHDWWDFNHUDQGXVHWKHDYDLODEOHWLPHWRSUHSDUH'HIHQGHUVVWXG\
WKHWHUUDLQWKHHQHP\DQGWKHVLWXDWLRQWHPSODWHWRSUHSDUH HQJDJHPHQWDUHDV($V$Qengagement area
LVDQDUHDZKHUHWKHFRPPDQGHULQWHQGVWRFRQWDLQDQGGHVWUR\DQHQHP\IRUFHZLWKWKHPDVVHGHIIHFWVRIDOO
DYDLODEOHZHDSRQVDQGVXSSRUWLQJV\VWHPV$'3$Qengagement areaLVDQDUHDZKHUHWKHFRPPDQGHU
LQWHQGVWRFRQWDLQDQGGHVWUR\DQHQHP\IRUFHZLWKWKHHIIHFWVRIPDVVHGZHDSRQVDQGVXSSRUWLQJV\VWHPV
0&53&RPPDQGHUVHPSOR\QDWXUDODQGPDQPDGHREVWDFOHVWRFDQDOL]HDWWDFNLQJIRUFHVLQWR($V
7KH\GHVLJQDWHWDUJHWUHIHUHQFHSRLQWVWRGULYHDWWDFNLQJIRUFHVLQWR($VDQGWKHQPDVVILUHRQWKHHQHP\
RQFHLQWKH($$target reference pointLVDSUHGHWHUPLQHGSRLQWRIUHIHUHQFHQRUPDOO\DSHUPDQHQWVWUXFWXUH
RUWHUUDLQIHDWXUHWKDWFDQEHXVHGZKHQGHVFULELQJDWDUJHWORFDWLRQ-30DULQH&RUSVDPSOLILFDWLRQ
LVDQHDVLO\UHFRJQL]DEOHSRLQWRQWKHJURXQGHLWKHUQDWXUDORUPDQPDGHXVHGWRLQLWLDWHGLVWULEXWHDQG
FRQWURO ILUHV 0&53  &RPPDQGHUV SODFH LQIRUPDWLRQ FROOHFWLRQ DVVHWV WKURXJKRXW WKHLU $2V WR
SURYLGHLQIRUPDWLRQDQGHDUO\ZDUQLQJRIHQHP\DFWLRQV7KH\SRVLWLRQFRPEDWPXOWLSOLHUVVXFKDVILUHVDQG
VXVWDLQPHQWDVVHWVWRVXSSRUWWKHLUGHIHQVLYHSODQV'HIHQGHUVLPSURYHWKHVXUYLYDELOLW\RIWKHLUXQLWVE\
FRQVWUXFWLQJILHOGIRUWLILFDWLRQVXVLQJFDPRXIODJHDQGGLVSHUVLQJ'HIHQGLQJIRUFHVFRQWLQXHUHKHDUVDOVDQG
SUHSDUDWLRQVXQWLOFORVHFRPEDWEHJLQV
 /LNHGHIHQVLYHRSHUDWLRQVLQRWKHUWHUUDLQFRPPDQGHUVFRQGXFW($GHYHORSPHQWE\LQWHJUDWLQJGLUHFW
ILUHVLQGLUHFWILUHVDQGREVWDFOHVLQWRWKHGHIHQVLYHSODQ+RZHYHU($GHYHORSPHQWGLIIHUVLQWKHMXQJOHDV
WKHVHDFWLYLWLHVDUHRIWHQFRQFHQWUDWHGDORQJQDWXUDOOLQHVRIGULIWDQGWUDLOVRURWKHUDYHQXHVRIDSSURDFK
&RPPDQGHUVDOVRSULRULWL]HWKHXVHRIPLQHVDQGERRE\WUDSVRYHUREVWDFOHVWKDWFDQEHHDVLO\WUDYHUVHGE\
GLVPRXQWHGLQIDQWU\RUJXHUULOODIRUFHV

6(&85,7<
 &RPPDQGHUVVHFXUHWKHLUIRUFHVE\FRQGXFWLQJVHFXULW\SURWHFWLRQDQGLQIRUPDWLRQRSHUDWLRQVDQGE\
SHUIRUPLQJF\EHUVSDFHDQG(:WDVNV&RPPDQGHUVHPSOR\IRUZDUGDQGIODQNVHFXULW\IRUFHVWRSURWHFWWKHLU
GHIHQGLQJIRUFHVDQGSUHYHQWVXUSULVHSecurity operationsDUHWKRVHRSHUDWLRQVSHUIRUPHGE\FRPPDQGHUV
WRSURYLGHHDUO\DQGDFFXUDWHZDUQLQJRIHQHP\RSHUDWLRQVWRSURYLGHWKHIRUFHVEHLQJSURWHFWHGZLWKWLPH
DQGPDQHXYHUVSDFHZLWKLQZKLFKWRUHDFWWRWKHHQHP\DQGWRGHYHORSWKHVLWXDWLRQWRDOORZFRPPDQGHUV
WR HIIHFWLYHO\ XVH WKHLU SURWHFWHG IRUFHV $'3  6HFXULW\ RSHUDWLRQV SUHYHQW HQHP\ LQWHOOLJHQFH
VXUYHLOODQFH DQG UHFRQQDLVVDQFH DVVHWV IURP GHWHUPLQLQJ IULHQGO\ ORFDWLRQV VWUHQJWKV DQG ZHDNQHVVHV
3URWHFWLRQHIIRUWVSUHVHUYHFRPEDWSRZHUDQGFRPPDQGHUVSURWHFWWKHLUIRUFHVIURPDWWULWLRQE\LQFRUSRUDWLQJ
DLUDQGPLVVLOHGHIHQVHDVVHWVLQWRWKHGHIHQVLYHSODQ7KH\FRQGXFWLQIRUPDWLRQRSHUDWLRQVWRSUHYHQWFLYLOLDQ
LQWHUIHUHQFH ZLWK WKHLU RSHUDWLRQV 0,/'(& F\EHUVSDFH DQG (: LQDFFXUDWHO\ SRUWUD\ IULHQGO\ IRUFHV WR
PLVOHDGHQHP\FRPPDQGHUVDQGGHQ\WKRVHVDPHHQHP\FRPPDQGHUVWKHDELOLW\WRXVHF\EHUVSDFHDQGWKH
(066HFXULW\PD\LQFOXGHSURYLGLQJDUHDVHFXULW\IRUFLYLOLDQVWKHLQIUDVWUXFWXUH/2&VDQGRWKHUDVSHFWV
RIWKHHFKHORQ¶VVXSSRUWDQGFRQVROLGDWLRQDUHDV
 6HFXULW\RSHUDWLRQVLQWKHMXQJOHDUHFULWLFDOO\LPSRUWDQWDVWKHGHQVH IROLDJHDQGUHVWULFWLYHWHUUDLQ
SURYLGH WKH HQHP\ ZLWK WKH FRYHU DQG FRQFHDOPHQW QHFHVVDU\ WR FRQGXFW FORVH UHFRQQDLVVDQFH DJDLQVW
IULHQGO\ IRUFHV $V VXFK FRPPDQGHUV XVH D WZRWLHUHG VHFXULW\ SODQ WKDW HPSOR\V FRXQWHUUHFRQQDLVVDQFH
IRUFHVLQWKHVHFXULW\DUHDWRSURWHFWWKHPDLQERG\IURPHQHP\REVHUYDWLRQDQGORQJUDQJHUHFRQQDLVVDQFH
SDWUROV WR DVFHUWDLQ WKH HQHP\¶V VFKHPH RI PDQHXYHU GLVSRVLWLRQ DQG FRPSRVLWLRQ 'LVPRXQWHG
UHFRQQDLVVDQFHDQGFRXQWHUUHFRQQDLVVDQFHIRUFHVDUHFULWLFDOWRVHFXULW\RSHUDWLRQVLQWKHMXQJOHEHFDXVHWKH
GHQVH FDQRS\RIWHQOLPLWVWKHDELOLW\RIVDWHOOLWHRUDHULDOUHFRQQDLVVDQFHDVVHWVWRLGHQWLI\DQGFROOHFWRQ
HQHP\IRUFHV

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

7<3(62)'()(16,9(23(5$7,216
 7KHUHDUHWKUHHW\SHVRIGHIHQVLYHRSHUDWLRQVWKHDUHDGHIHQVHWKHPRELOHGHIHQVHDQGWKHUHWURJUDGH
7KHWKUHHXQLTXHRSHUDWLRQVSUHVHQWYDULRXVFKDOOHQJHVLQSODQQLQJDQGH[HFXWLRQ&RPPDQGHUVFDQXVHDQ\
FRPELQDWLRQRIWKHWKUHHW\SHVRIGHIHQVLYHRSHUDWLRQVZKHQGHYHORSLQJWKHLUSODQ$QDUHDGHIHQVHRULHQWV
RQWKHUHWHQWLRQRIWHUUDLQE\IL[LQJWKHHQHP\ZLWKGLUHFWILUHWKURXJKDVHULHVRIPXWXDOO\VXSSRUWLQJEDWWOH
SRVLWLRQV $ battle position LV D GHIHQVLYH ORFDWLRQ RULHQWHG RQ D OLNHO\ HQHP\ DYHQXH RI DSSURDFK
$'3$ battle positionLVLQJURXQGRSHUDWLRQVDGHIHQVLYHORFDWLRQRULHQWHGRQDQHQHP\DYHQXHRI
DSSURDFKIURPZKLFKDXQLWPD\GHIHQG0&538QLWVWKHQGHVWUR\WKHHQHP\E\IRFXVLQJILUHVLQWR
WKH ($ 7KH PRELOH GHIHQVH RULHQWV RQ WKH GHVWUXFWLRQ RI WKH DWWDFNLQJ IRUFH E\ SHUPLWWLQJ WKH HQHP\ WR
DGYDQFHLQWRDSRVLWLRQWKDWH[SRVHVLWWRFRXQWHUDWWDFNE\DPRELOHUHVHUYH5HWURJUDGHVVHHNWRUHSRVLWLRQ
IULHQGO\ IRUFHVWRLPSURYH DQRSHUDWLRQDORUWDFWLFDOVLWXDWLRQDQGRIWHQ LQYROYHWUDGLQJ VSDFHIRUWLPHWR
SUHSDUH D FRXQWHUDWWDFN (IIHFWLYHO\ FRPELQLQJ DOO WKUHH W\SHV RI GHIHQVLYH RSHUDWLRQV DV SDUW RI D ODUJHU
GHIHQVLYHSODQUHTXLUHVFRPPDQGHUV WR OHYHUDJHWKHXQLTXHFDSDELOLWLHVRIWKHLUVXERUGLQDWH XQLWVE\WDVN
RUJDQL]LQJWKHPDSSURSULDWHO\IRUWKHUHVSHFWLYHGHIHQVLYHRSHUDWLRQWKH\DUHH[HFXWLQJ

$5($'()(16(
 7KHarea defenseLVDW\SHRIGHIHQVLYHRSHUDWLRQWKDWFRQFHQWUDWHVRQGHQ\LQJHQHP\IRUFHVDFFHVVWR
GHVLJQDWHGWHUUDLQIRUDVSHFLILFWLPHUDWKHUWKDQGHVWUR\LQJWKHHQHP\RXWULJKW$'37KHarea defense
LVDW\SHRIGHIHQVHLQZKLFKWKHEXONRIWKHGHIHQGLQJIRUFHLVGLVSRVHGLQVHOHFWHGWDFWLFDOORFDOLWLHVZKHUH
WKHGHFLVLYHEDWWOHLVWREHIRXJKW3ULQFLSDOUHOLDQFHLVSODFHGRQWKHDELOLW\RIWKHIRUFHVLQWKHGHIHQGHG
ORFDOLWLHVWRPDLQWDLQWKHLUSRVLWLRQVDQGWRFRQWUROWKHWHUUDLQEHWZHHQWKHP7KHUHVHUYHLVXVHGWRDGGGHSWK
WREORFNRUUHVWRUHWKHEDWWOHSRVLWLRQE\FRXQWHUDWWDFN0&53$QDUHDGHIHQVHIRFXVHVRQUHWDLQLQJ
WHUUDLQE\SRVLWLRQLQJWKHEXONRIDGHIHQGLQJIRUFHLQPXWXDOO\VXSSRUWLQJSUHSDUHGSRVLWLRQVDQGUHO\LQJ
RQWKHGHIHQGHUVWRPDLQWDLQWKHLUSRVLWLRQVDQGFRQWUROWKHWHUUDLQEHWZHHQWKHP$QDUHDGHIHQVHXVHVEDWWOH
SRVLWLRQVDQGVWURQJSRLQWVLQFRPELQDWLRQZLWKREVWDFOHVDQGEDUULHUVWRVORZFDQDOL]HDQGGHIHDWWKHHQHP\
DWWDFNZLWKILUHVLQWR($V&RXQWHUDWWDFNVDUHXVHGWRVXSSOHPHQWDQDUHDGHIHQVH$strong pointLVDKHDYLO\
IRUWLILHGEDWWOHSRVLWLRQWLHGWRDQDWXUDORUUHLQIRUFLQJREVWDFOHWRFUHDWHDQDQFKRUIRUWKHGHIHQVHRUWRGHQ\
WKHHQHP\GHFLVLYHRUNH\WHUUDLQ$'3$ strong pointLVDNH\SRLQWLQDGHIHQVLYHSRVLWLRQXVXDOO\
VWURQJO\IRUWLILHGDQGKHDYLO\DUPHGZLWKDXWRPDWLFZHDSRQVDURXQGZKLFKRWKHUSRVLWLRQDUHJURXSHGIRU
LWVSURWHFWLRQ0&53
 7KHDUHDGHIHQVHFDQEHH[WUHPHO\HIIHFWLYHLQWKHMXQJOHHQYLURQPHQW7KHFRPSOH[WHUUDLQFRYHU
DQGFRQFHDOPHQWSURYLGHDGYDQWDJHVWRWKHGHIHQGHUZKLOHFRPSOLFDWLQJRIIHQVLYHRSHUDWLRQV 7URRSVFDQ
RIWHQDFFRPSOLVKPDQHXYHUDORQJLQWHULRUOLQHVLQDFRYHUHGPDQQHULQFUHDVLQJWKHGHIHQGHU¶VDELOLW\WRUHDFW
WRHQHP\DFWLRQV
 &RPPDQGHUVXVHWKHWLPHDYDLODEOHWRLPSURYHEDWWOHSRVLWLRQVDQGH[SDQGWKHLUGHIHQVLYHSHULPHWHU
WREHVWXWLOL]HWHUUDLQDQGSURYLGHIOH[LELOLW\([SDQGLQJWKHGHIHQVLYHDUHDSURYLGHVFRPPDQGHUVZLWKWKH
VSDFHWRDGMXVWWKHLUGHIHQVLYHSODQWRWKHHQHP\DWWDFN0RUHLPSRUWDQWO\LWDOORZVFRPPDQGHUVWRWUDGH
VSDFH IRUWLPH DVWKH\H[KDXVWDQDWWDFNLQJHQHP\E\ PDNLQJ WKDWHQHP\ ILJKW IRUJUHDWHUWHUUDLQ6SDFH
DOORZV WKH XQLW WR LGHQWLI\ DQG GHYHORS SULPDU\ DOWHUQDWH DQG VXEVHTXHQW EDWWOH SRVLWLRQV +RZHYHU LQ
H[SDQGLQJWKHLUGHIHQVLYHDUHDFRPPDQGHUVPXVWEDODQFHWKHEHQHILWVDJDLQVWWKHULVNWKDWDODUJHUGHIHQVLYH
DUHD LV HDVLHU WR LQILOWUDWH /DUJHU GHIHQVLYH DUHDV DOVR GLVSHUVH EDWWOH RU ILJKWLQJ SRVLWLRQV DQG FDQ SXVK
IULHQGO\IRUFHVEH\RQGVXSSRUWLQJUDQJH/HDGHUVPXVWWDNHFDUHWRHQVXUHWKDWEDWWOHRUILJKWLQJSRVLWLRQV
FDQSURYLGHPXWXDOVXSSRUW
 7KHHQHP\DWWDFNLQWKHMXQJOHZLOOOLNHO\EHJLQZLWKUHFRQQDLVVDQFHSDWUROVRUSURELQJLQDQHIIRUWWR
LGHQWLI\WKHFRQWRXUVRIWKHGHIHQVLYHDUHD7KHGHQVHIROLDJHUHTXLUHVWKHHQHP\FRQGXFWGLVPRXQWHGSDWUROV
WRDVFHUWDLQWKHIULHQGO\IRUFHSRVWXUH7KHHQHP\ZLOODWWHPSWWRLGHQWLI\JDSVZHDNSRLQWVREVWDFOHVDQG
WKH ORFDWLRQ RI FUHZVHUYHG ZHDSRQV ,I VXFFHVVIXO WKH HQHP\ ZLOO E\SDVV REVWDFOHV DQG IRFXV WKH
SUHSRQGHUDQFHRILWVIRUFHVRQZHDNSRLQWVRUJDSVLQ WKH GHIHQVHDQGWKHQDWWHPSWWRQHXWUDOL]HIULHQGO\
SRVLWLRQVRQHDWDWLPH7RDYRLGEHWUD\LQJWKHSRVLWLRQRIFUHZVHUYHGZHDSRQVWRHQHP\UHFRQQDLVVDQFH
SDWUROVPDFKLQHJXQWHDPVXVHULIOHVDQGVPDOODUPVWRGHIHQGDJDLQVWHQHP\UHFRQQDLVVDQFHSDWUROV
 7KH PRVW LPSRUWDQW VWHS LQ SUHSDULQJ DQ DUHD GHIHQVH LV ($ GHYHORSPHQW &RPPDQGHUV FRQGXFW D
0(777&0(777DVVHVVPHQWDQGFRQVLGHUVWKHHQHP\VLWXDWLRQWHPSODWHWRGHWHUPLQHSUREDEOHHQHP\

6HSWHPEHU $730&73& 

&KDSWHU

&2$VDQGDYHQXHVRIDSSURDFK&RPPDQGHUVWKHQGHVLJQDWHVDQ($WRGHVWUR\WKHHQHP\IRUFHXVLQJPDVVHG
ILUHVIURPDOODYDLODEOHZHDSRQV7KH\PD\GHVLJQDWHSULPDU\DQGDOWHUQDWH($VWRDOLJQZLWKSRWHQWLDOHQHP\
&2$V&RPPDQGHUVQH[WDVVLJQ$2VDQGEDWWOHSRVLWLRQVWRVXERUGLQDWHXQLWVDQGHQVXUHWKHVHSRVLWLRQVDUH
GHIHQVLEOHDQGSURYLGHPXWXDOVXSSRUW*LYHQWKHOLPLWHGREVHUYDWLRQDQGILHOGVRIILUHFRPPRQWRWKHMXQJOH
EDWWOHSRVLWLRQVZLOOOLNHO\EHFORVHUWRHDFKRWKHUWKDQLQPRUHRSHQWHUUDLQ/HDGHUVLGHQWLI\ORFDWLRQVIRU
FUHZVHUYHGDQGDQWLDUPRUZHDSRQVDQGHPSODFHREVWDFOHVDQGPLQHVWRFDQDOL]HIRUFHVLQWR($V2EVWDFOHV
DQGPLQHVVKRXOGFRPSOHPHQWQDWXUDOEDUULHUV/HDGHUVREVHUYHDOOREVWDFOHVZKLOHSODFLQJWKHPZLWKLQUDQJH
RIGLUHFWILUHZHDSRQVEXWRXWVLGHKDQGJUHQDGHUDQJHRIGHIHQVLYHSRVLWLRQV8QLWVUHPRYHH[FHVVYHJHWDWLRQ
WRFUHDWHFOHDUILHOGVRIILUHKRZHYHU6ROGLHUV0DULQHVFDUHIXOO\DYRLGUHPRYLQJVRPXFKYHJHWDWLRQWKDWLW
FRPSURPLVHV WKH SRVLWLRQ¶V ORFDWLRQ :LWK WKH UHPDLQLQJ WLPH DYDLODEOH 6ROGLHUV0DULQHV FRQGXFW WKH
SULRULWLHVRIZRUNDQGFRQWLQXHWRLPSURYHWKHLUGHIHQVLYHSRVLWLRQV
 7KHVHYHQVWHSVRI($GHYHORSPHQW
z ,GHQWLI\DOOOLNHO\HQHP\DYHQXHVRIDSSURDFK
z 'HWHUPLQHOLNHO\HQHP\VFKHPHRIPDQHXYHU
z 'HWHUPLQHZKHUHWRNLOOWKHHQHP\
z 3ODQDQGLQWHJUDWHREVWDFOHV
z (PSODFHZHDSRQV\VWHPV
z 3ODQDQGLQWHJUDWHLQGLUHFWILUHV
z 5HKHDUVHWKHH[HFXWLRQRIRSHUDWLRQVLQWKH($

 $IWHULGHQWLI\LQJWKH($DQGEDWWOHSRVLWLRQVFRPPDQGHUVFDQGLYLGHWKHLUGHIHQVLYH$2LQWRDPDLQ
EDWWOHDUHDDQGDVHFXULW\DUHD7KH\GHSOR\VHFXULW\IRUFHVHVWDEOLVKOLVWHQLQJDQGREVHUYDWLRQSRVWVDQG
SRVLWLRQ HDUO\ ZDUQLQJ GHYLFHV DQG VHQVRUV LQ WKH VHFXULW\ DUHD WR IXUQLVK LQIRUPDWLRQ RQ DQG GLVUXSW WKH
DWWDFNLQJHQHP\IRUFH7KHHDUO\ZDUQLQJSURYLGHGE\VHFXULW\IRUFHVLVFULWLFDOWRDVXFFHVVIXODUHDGHIHQVH
LQWKHMXQJOHDVWKHGHQVHYHJHWDWLRQDQGUHVWULFWLYHWHUUDLQFDQFRQFHDOHQHP\PRYHPHQWDQGUHGXFHWKHWLPH
DYDLODEOHIRUWKHFRPPDQGHUWRGHWHUPLQHWKHHQHP\¶VVFKHPHRIPDQHXYHU
 &RPPDQGHUVSODQDQGHVWDEOLVKGLUHFWDQGLQGLUHFWILUHFRQWUROPHDVXUHVDVSDUWRI($GHYHORSPHQW
7KH\ GHVLJQDWH WDUJHW UHIHUHQFH SRLQWV DQG ILUH VXSSRUW FRRUGLQDWLRQ PHDVXUHV )6&0V VXFK DV ILQDO
SURWHFWLYH ILUHV DQG ILQDO SURWHFWLYH OLQHV )3/V WR IDFLOLWDWH UDSLGO\ HQJDJLQJ WDUJHWV DQG SURYLGLQJ
VDIHJXDUGVIRUIULHQGO\IRUFHV$ final protective fireLVDQLPPHGLDWHO\DYDLODEOHSUHDUUDQJHGEDUULHURIILUH
GHVLJQHGWRLPSHGHHQHP\PRYHPHQWDFURVVGHIHQVLYHOLQHVRUDUHDV-37KH)3/LVDVHOHFWHGOLQH
RIILUHRQZKLFKIULHQGO\XQLWVFKHFNDQHQHP\DVVDXOWE\LQWHUORFNLQJILUHIURPDOODYDLODEOHZHDSRQVDQG
REVWDFOHV*LYHQWKH ODFNRILGHQWLILDEOHWHUUDLQ IHDWXUHVLQ WKHMXQJOH XQLWVFDQHVWDEOLVK WDUJHWUHIHUHQFH
SRLQWVDQGSUHGHWHUPLQHGWDUJHWVIRULQGLUHFWILUHRQVWUHDPVWUDLOMXQFWLRQVRURWKHUOLNHO\HQHP\DYHQXHV
RIDSSURDFK8QLWVFDQDOVRXVHLQGLUHFWILUHWRFRYHUGHDGVSDFH
 (IIHFWLYHFRPPDQGDQGFRQWUROGXULQJDQDUHDGHIHQVHUHTXLUHVFRQVLGHUDEOHSODQQLQJDQGUHKHDUVDOV
/HDGHUVHVWDEOLVKQHDUDQGIDUUHFRJQLWLRQVLJQDOVWRSUHYHQWIUDWULFLGHEHWZHHQVHFXULW\IRUFHVDQGIRUFHV
RSHUDWLQJ LQ WKH PDLQ EDWWOH DUHD 8QLWV LGHQWLI\ ODQHV DQG HVWDEOLVK SURFHGXUHV WR IDFLOLWDWH WKH UHDUZDUG
SDVVDJHRIVHFXULW\IRUFHVIURPWKHVHFXULW\DUHDXSRQDSUHGHWHUPLQHGWULJJHURUFRPPDQG
 &RPPDQGHUV GHVLJQDWH D UHVHUYH WR LQFRUSRUDWH IOH[LELOLW\ LQWR WKHLU DUHD GHIHQVH $IWHU WKH VWDII
GHWHUPLQHVWKHHQHP\¶VVFKHPHRIPDQHXYHUFRPPDQGHUVXVHDUHVHUYHWRFRQFHQWUDWHFRPEDWSRZHUDWWKH
GHFLVLYHSRLQWH[SORLWRSSRUWXQLWLHVFRXQWHUDWWDFNRUVXSSRUWDWKUHDWHQHGXQLW&RXQWHUDWWDFNVDUHSODQQHG
DQGGHOLEHUDWHWKHFRXQWHUDWWDFNLQJIRUFHPXVWEHDZDUHRIREVWDFOHVPLQHVDQGODQHVHVWDEOLVKHGLQDQG
DURXQGWKH($

02%,/('()(16(
 7KHmobile defenseLVDW\SHRIGHIHQVLYHRSHUDWLRQWKDWFRQFHQWUDWHVRQWKHGHVWUXFWLRQRUGHIHDWRI
WKHHQHP\WKURXJKDGHFLVLYHDWWDFNE\DVWULNLQJIRUFH$'37KHmobile defenseLVGHIHQVHRIDQDUHD
RUSRVLWLRQLQZKLFKPDQHXYHULVXVHGZLWKRUJDQL]DWLRQRIILUHDQGXWLOL]DWLRQRIWHUUDLQWRVHL]HWKHLQLWLDWLYH
IURP WKH HQHP\ 0&53  7KH PRELOH GHIHQVH IRFXVHV RQ GHIHDWLQJ RU GHVWUR\LQJ DQ HQHP\ E\
DOORZLQJHQHP\IRUFHVWRDGYDQFHWRDSRLQWZKHUHWKH\DUHH[SRVHGWRDGHFLVLYHFRXQWHUDWWDFNE\DVWULNLQJ
IRUFH7KHstriking forceLVDGHGLFDWHGFRXQWHUDWWDFNIRUFHLQDPRELOHGHIHQVHFRQVWLWXWHGZLWKWKHEXONRI

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

DYDLODEOHFRPEDWSRZHU$'3$IL[LQJIRUFHVXSSOHPHQWVWKHVWULNLQJIRUFH&RPPDQGHUVXVHDIL[LQJ

IRUFHWRKROGDWWDFNLQJHQHP\IRUFHVLQSRVLWLRQWRKHOSFKDQQHODWWDFNLQJHQHP\IRUFHVLQWRDPEXVKDUHDV
DQGWRUHWDLQDUHDVIURPZKLFKWRODXQFKWKHVWULNLQJIRUFH
 $ PRELOH GHIHQVH UHTXLUHV DQ $2 ZLWK FRQVLGHUDEOH GHSWK $ FRPPDQGHU PXVW EH DEOH WR VKDSH D
EDWWOHILHOGEDWWOHVSDFHFDXVLQJDQHQHP\IRUFHWRRYHUH[WHQGLWV /2&VH[SRVHLWVIODQNVDQGGLVVLSDWHLWV
FRPEDWSRZHU/LNHZLVHFRPPDQGHUVPXVWKDYHWKHDELOLW\WRPRYHIULHQGO\IRUFHVDURXQGDQGEHKLQGDQ
HQHP\IRUFHWDUJHWHGIRULVRODWLRQDQGGHVWUXFWLRQ
 $VXFFHVVIXOPRELOHGHIHQVHUHTXLUHVWKHRUFKHVWUDWLRQDQGV\QFKURQL]DWLRQRIDYDLODEOHFDSDELOLWLHV
DFURVVPXOWLSOHGRPDLQVWRPD[LPL]HWKHFRPEDWSRZHURIWKHGHIHQGLQJXQLWVSDUWLFXODUO\WKHVWULNLQJIRUFH
&RPPDQGHUVRUFKHVWUDWHWKHGHOLYHU\RIWKHLUFRPELQHGHIIHFWVWRUHJDLQWKHLQLWLDWLYHDQGVHL]HSRVLWLRQVRI
UHODWLYHDGYDQWDJHIRUODWHUH[SORLWDWLRQ
 ([HFXWLQJDPRELOHGHIHQVHLQWKHMXQJOHHQYLURQPHQWLVPRUHGLIILFXOWWKDQLQRWKHUHQYLURQPHQWV
7KH UHVWULFWLYHWHUUDLQOLPLWHG/2&VDQGODFNRI PRELOLW\FRUULGRUVLPSHGHWKHDELOLW\ RIDFRQYHQWLRQDO
PRXQWHGRUGLVPRXQWHGVWULNLQJIRUFHWRRXWPDQHXYHUWKHHQHP\DWWDFNWKHHQHP\¶VIODQNVDQGXOWLPDWHO\
LVRODWHDQGGHIHDWWKHHQHP\+RZHYHUULYHULQHRUDLUDVVDXOWIRUFHVFDQEHXVHGDVDVWULNLQJIRUFHLQWKH
MXQJOH:KHQFRPPDQGHUVKDYHWKHVHIRUFHVDYDLODEOHWKH\FDQ XVHWKHPWRVHYHUHDQHQHP\¶V/2&DQG
LVRODWHWKHDWWDFNLQJIRUFH*LYHQWKHVXVWDLQPHQWFKDOOHQJHVLQKHUHQWLQWKHMXQJOHWKHHQHP\¶V/2&VDUH
OLNHO\WREHWHQXRXVDQGVXVFHSWLEOHWRDWWDFN

5(752*5$'(
 7KH retrograde LV D W\SH RI GHIHQVLYH RSHUDWLRQ WKDW LQYROYHV RUJDQL]HG PRYHPHQW DZD\ IURP WKH
HQHP\$'3 -3GHILQHVretrogradeDVWKHSURFHVVIRUWKHPRYHPHQWRIQRQXQLWHTXLSPHQWDQG
PDWHULHOIURPDIRUZDUGORFDWLRQWRDUHVHWUHSOHQLVKPHQWUHSDLURUUHFDSLWDOL]DWLRQSURJUDPRUWRDQRWKHU
GLUHFWHG$2WRUHSOHQLVKXQLWVWRFNVRUWRVDWLVI\VWRFNUHTXLUHPHQWV0DULQH&RUSVDPSOLILFDWLRQRIWKHMRLQW
GHILQLWLRQLVDQ\PRYHPHQWRUPDQHXYHURIDFRPPDQGWRWKHUHDURUDZD\IURPWKHHQHP\0&53
$Q HQHP\ PD\ IRUFH WKHVH RSHUDWLRQV RU D FRPPDQGHU PD\ H[HFXWH WKHP YROXQWDULO\ $ UHWURJUDGH LV D
WUDQVLWLRQDORSHUDWLRQLWLVQRWFRQGXFWHGLQLVRODWLRQEXWSDUWRIDODUJHUVFKHPHRIPDQHXYHUGHVLJQHGWR
UHJDLQWKHLQLWLDWLYHDQGGHIHDWWKHHQHP\(DFKIRUPRIUHWURJUDGHKDVLWVXQLTXHSODQQLQJFRQVLGHUDWLRQV
EXWFRQVLGHUDWLRQVFRPPRQWRDOOUHWURJUDGHVDUHULVNWKHQHHGIRUV\QFKURQL]DWLRQDQGVHFXULW\)ULHQGO\
IRUFHVFRQGXFWLQJUHWURJUDGHRSHUDWLRQV PDNH PD[LPXPXVHRIDYDLODEOHHQDEOHUVVXFKDVHQJLQHHUVDQG
PLOLWDU\ SROLFH WR HQKDQFH IULHQGO\ PRELOLW\ 7KLV LV SDUWLFXODUO\ WUXH GXULQJ UHWURJUDGHV LQ WKH MXQJOH LQ
ZKLFKXQLWVQHHGWRLPSURYHURXWHUHFRQQDLVVDQFHDQGFRQVWUXFWLRQWRLPSURYHWKHOLPLWHG/2&V(QJLQHHUV
DUH DOVR XVHG WR GHFUHDVH WKH HQHP\¶V PRELOLW\ E\ HPSODFLQJ REVWDFOHV DQG PLQHV 7UDFNHG DQG ZKHHOHG
YHKLFOHVFDQVXSSRUWUHWURJUDGHRSHUDWLRQLQWKHMXQJOHEXWRIWHQGLVHQJDJHILUVWFRYHUHGE\LQIDQWU\7KH
WKUHHIRUPVRIUHWURJUDGHDUHGHOD\ZLWKGUDZDQGUHWLUHPHQW

'HOD\
 $ delayLVZKHQDIRUFHXQGHUSUHVVXUHWUDGHVVSDFHIRUWLPHE\VORZLQJGRZQWKHHQHP\¶VPRPHQWXP
DQGLQIOLFWLQJPD[LPXPGDPDJHRQHQHP\IRUFHVZLWKRXWEHFRPLQJGHFLVLYHO\HQJDJHG$'3$ delay
LV D IRUP RI UHWURJUDGH LQ ZKLFK D IRUFH XQGHU SUHVVXUH WUDGHV VSDFH IRU WLPH E\ VORZLQJ WKH HQHP\¶V
PRPHQWXP DQG LQIOLFWLQJ PD[LPXP GDPDJH RQ WKH HQHP\ ZLWKRXW LQ SULQFLSOH EHFRPLQJ GHFLVLYHO\
HQJDJHG0&53,QGHOD\VXQLWV\LHOGJURXQGWRJDLQWLPHZKLOHUHWDLQLQJIOH[LELOLW\DQGIUHHGRP
RIDFWLRQWRLQIOLFWWKHPD[LPXPGDPDJHRQDQHQHP\
 7KHGHOD\LVRQHRIWKHPRVWGHPDQGLQJJURXQGFRPEDWRSHUDWLRQV$GHOD\ZHDUVGRZQWKHHQHP\VR
WKDW IULHQGO\ IRUFHV FDQ UHJDLQ WKH LQLWLDWLYH WKURXJK RIIHQVLYH DFWLRQ EX\ WLPH WR HVWDEOLVK DQ HIIHFWLYH
GHIHQVH RU GHWHUPLQH HQHP\ LQWHQWLRQV DV SDUW RI WKH SHUIRUPDQFH RI HFKHORQ VHFXULW\ RSHUDWLRQV 7KH
GHOD\LQJ IRUFH²QRUPDOO\ RUJDQL]HG LQWR D PDLQ ERG\ VHFXULW\ IRUFH DQG D UHVHUYH²DFFRPSOLVKHV LWV
PLVVLRQE\PDVVLQJILUHRQWKHHQHP\LQ($VDQGH[HFXWLQJVXFFHVVLYHRUDOWHUQDWHERXQGVWRVXEVHTXHQW
EDWWOHSRVLWLRQV,WDOVRDWWDFNVGHIHQGVIHLQWVRUGHPRQVWUDWHV1RUPDOO\LQDGHOD\LQIOLFWLQJFDVXDOWLHVRQ
WKHHQHP\LVVHFRQGDU\WRJDLQLQJWLPH([FHSWZKHQGLUHFWHGWRSUHYHQWHQHP\SHQHWUDWLRQRIDSKDVHOLQH
IRUDVSHFLILFGXUDWLRQDIRUFHFRQGXFWLQJDGHOD\QRUPDOO\GRHVQRWEHFRPHGHFLVLYHO\HQJDJHG7KHIL[LQJ

6HSWHPEHU $730&73& 

&KDSWHU

IRUFHLQDPRELOHGHIHQVHPLJKWDOVRFRQGXFWDGHOD\WRGUDZWKHDWWDFNLQJHQHP\IRUFHLQWRDORFDWLRQZKHUH
WKHVWULNLQJIRUFHFDQPDNHDGHFLVLYHDWWDFNWRGHIHDWWKHHQHP\LQGHWDLO
 ,Q WKH MXQJOH DPEXVKHV YHU\ HIIHFWLYHO\ VORZ WKH HQHP\¶V SXUVXLW DQG FDQ DLG WKH PDLQ ERG\ LQ
EUHDNLQJ FRQWDFW DORQJ WKH GHOD\ URXWH 5HFRQQDLVVDQFH DQG FOHDUDQFH RI URXWHV WR WKH UHDU FDQ LPSURYH
IULHQGO\PRELOLW\DQGLQFUHDVHWKHVXFFHVVRIDGHOD\

Preparing for a Delay

 3UHSDUDWLRQVIRUDGHOD\DUHVLPLODUWRSUHSDUDWLRQVIRUDQDUHDGHIHQVH7KHFRPPDQGHUFRQGXFWVD
0(777&0(777DVVHVVPHQWDQGFRQVLGHUVWKHHQHP\VLWXDWLRQWHPSODWHWRGHWHUPLQHSUREDEOHHQHP\
&2$VDQGDYHQXHVRIDSSURDFK &RPPDQGHUVWKHQGHVLJQDWH DVHULHVRI ($VWRGHVWUR\WKHHQHP\ IRUFH
XVLQJPDVVHGILUHVIURPDOODYDLODEOHZHDSRQV7KH\WKHQGHVLJQDWHSULPDU\DQGVXEVHTXHQWEDWWOHSRVLWLRQV
DQG LI SRVVLEOH VWURQJ SRLQWV 6XERUGLQDWH FRPPDQGHUV GHVLJQDWH DOWHUQDWH DQG VXSSOHPHQWDU\ EDWWOH
SRVLWLRQV*LYHQWKHOLPLWHGREVHUYDWLRQDQGILHOGVRIILUHFRPPRQLQWKHMXQJOHOHDGHUVRIWHQHVWDEOLVKWKHVH
SRVLWLRQVFORVHUWRJHWKHUWKDQLQPRUHRSHQWHUUDLQ7KLVHQVXUHVSRVLWLRQVFDQSURYLGHPXWXDOVXSSRUWDQG
GHOLYHU PD[LPXP ILUH RQ WKH ($ $ EDWWOH SRVLWLRQ RULHQWV RQ D OLNHO\ HQHP\ DYHQXH RI DSSURDFK 6HH
SDUDJUDSKIRUDGLVFXVVLRQRIEDWWOHSRVLWLRQ$ primary positionLVWKHSRVLWLRQWKDWFRYHUVWKHHQHP\¶V
PRVWOLNHO\DYHQXHRIDSSURDFKLQWRWKHDUHDRIRSHUDWLRQV$'3$ primary positionLVDSRVLWLRQWKDW
SURYLGHV WKH EHVW PHDQV WR DFFRPSOLVK WKH DVVLJQHG PLVVLRQ 0&53  $Q alternate position LV D
GHIHQVLYHSRVLWLRQWKDWWKHFRPPDQGHUDVVLJQVWRDXQLWRUZHDSRQIRURFFXSDWLRQZKHQWKHSULPDU\SRVLWLRQ
EHFRPHVXQWHQDEOHRUXQVXLWDEOHIRUFDUU\LQJRXWWKHDVVLJQHGWDVN$'3$Qalternate positionLVD
SRVLWLRQWREHRFFXSLHGZKHQWKHSULPDU\SRVLWLRQEHFRPHVXQWHQDEOHRUXQVXLWDEOHIRUFDUU\LQJRXWLWVWDVN
,WVSRVLWLRQDOORZVIXOILOOPHQWRIWKHRULJLQDOWDVN0&53$ supplementary positionLVDGHIHQVLYH
SRVLWLRQORFDWHGZLWKLQDXQLW¶VDVVLJQHGDUHDRIRSHUDWLRQVWKDWSURYLGHVWKHEHVWVHFWRUVRIILUHDQGGHIHQVLYH
WHUUDLQDORQJDQDYHQXHRIDSSURDFKWKDWLVQRWWKHSULPDU\DYHQXHZKHUHWKHHQHP\LVH[SHFWHGWRDWWDFN
$'3$ supplementary positionLVDSRVLWLRQWKDWSURYLGHVWKHEHVWPHDQVWRDFFRPSOLVKDWDVNWKDW
FDQQRWEHDFFRPSOLVKHGIURPWKHSULPDU\RUDOWHUQDWHSRVLWLRQ0&53$ subsequent positionLVD
SRVLWLRQWKDWDXQLWH[SHFWVWRPRYHWRGXULQJWKHFRXUVHRIEDWWOH$'3
 $IWHU GHVLJQDWLQJ EDWWOH SRVLWLRQV XQLWV PXVW LGHQWLI\ DQG PDUN URXWHV EHWZHHQ EDWWOH SRVLWLRQV WR
HQDEOHWKHUDSLGDQGRUGHUO\GLVSODFHPHQWRIWURRSV8QLWVDOVRLGHQWLI\URXWHVDQGODQHVEHWZHHQSULPDU\
DQG VXSSOHPHQWDU\ SRVLWLRQV LQ WKH HYHQW WKH HQHP\ DGRSWV DQ XQH[SHFWHG &2$ 8QLWV UHKHDUVH PRYLQJ
EHWZHHQ WKHLU EDWWOH SRVLWLRQV WR HQVXUH D FOHDU XQGHUVWDQGLQJ RI WKH VFKHPH RI PDQHXYHU DQG FRQWURO
PHDVXUHV7KH\DOVRLGHQWLI\WKHORFDWLRQRIPLQHVDQGREVWDFOHVDFURVVWKH$2WRHQVXUHFRXQWHUPRELOLW\
PHDVXUHVGRQRWLPSHGHIULHQGO\PRYHPHQW:LWKWKHWLPHUHPDLQLQJIRUFHVFRQGXFWWKHVHYHQVWHSVRI($
GHYHORSPHQWDQGFRQWLQXHWRLPSURYHWKHLUSRVLWLRQV6HHSDUDJUDSKIRUGLVFXVVLRQRIWKHVWHSVRI($
 $GHOD\LVDQLQKHUHQWO\ULVN\RSHUDWLRQWKDWUHTXLUHVXVLQJUHVWULFWLYHFRQWUROPHDVXUHVWRFRRUGLQDWH
PDQHXYHU V\QFKURQL]H ILUHV DQG SUHYHQW IUDWULFLGH :LWK IRUFHV LQWHUPLQJOLQJ XQGHU SUHVVXUH IURP DQ
DWWDFNLQJHQHP\DGHOD\UHTXLUHVFHQWUDOL]HGSODQQLQJDQGGHFHQWUDOL]HGFRQWURO7KHFRPPDQGHUDVVLJQLQJ
DXQLWWRDEDWWOHSRVLWLRQSURYLGHVGLVHQJDJHPHQWFULWHULDWKDWVSHFLI\ZKHQDQGXQGHUZKDWFRQGLWLRQVWKH
XQLWGLVSODFHVIURPWKDWSRVLWLRQWRDVXEVHTXHQWSRVLWLRQ'LVHQJDJHPHQWFULWHULDPD\FRQVLVWRIDQXPEHU
RIHQHP\IRUFHVRUYHKLFOHVSUHVHQWLQ WKH ($D QXPEHU RIHQHP\IRUFHVRUYHKLFOHVGHVWUR\HGRU DVHW
DPRXQW RI WLPH &RPPDQGHUV DOVR XVH WULJJHU OLQHV GHOD\ OLQHV DQG GLVHQJDJHPHQW OLQHV WR FRQWURO
PRYHPHQWDQGILUHVEHWZHHQ WKHLUVXERUGLQDWH XQLWV $WULJJHUOLQHLVDSKDVHOLQHORFDWHGRQLGHQWLILDEOH
WHUUDLQWKDWFURVVHVWKH($DQGLVXVHGWRLQLWLDWHDQGPDVVILUHVLQWRDQ($DWDSUHGHWHUPLQHGUDQJHIRUDOO
RUOLNHZHDSRQV\VWHPV$delay lineLVDSKDVHOLQHZKHUHWKHGDWHDQGWLPHEHIRUHZKLFKWKHHQHP\LVQRW
DOORZHG WR FURVV WKH SKDVH OLQH LV GHSLFWHG DV SDUW RI WKH JUDSKLF FRQWURO PHDVXUH )0  $
disengagement lineLVDSKDVHOLQHORFDWHGRQLGHQWLILDEOHWHUUDLQWKDWZKHQFURVVHGE\WKHHQHP\VLJQDOVWR
GHIHQGLQJHOHPHQWVWKDWLWLVWLPHWRGLVSODFHWRWKHLUQH[WSRVLWLRQ$'3'XULQJMXQJOHRSHUDWLRQV
VWUHDPVRUWUDLOVPD\EHGHVLJQDWHGDVWULJJHUOLQHVRUGLVHQJDJHPHQWOLQHVKRZHYHUWKH\PXVWEHYLVLEOH
IURPWKHXQLW¶VEDWWOHSRVLWLRQ&RPPDQGHUVXVHWULJJHUOLQHVDQGGLVHQJDJHPHQWOLQHVDVREVHUYDEOHFULWHULD
IRU LQLWLDWLQJ DQG WHUPLQDWLQJ DFWLRQV LQ DQ ($ 7ULJJHU OLQHV DQG GLVHQJDJHPHQW OLQHV DV ZHOO DV
GLVHQJDJHPHQWFULWHULDDUHFULWLFDOWRGHFHQWUDOL]HGFRQWURO
 ,QDGGLWLRQWRWULJJHUOLQHVDQGGLVHQJDJHPHQWOLQHVGHOD\VLQFRUSRUDWHFRQWUROPHDVXUHVFRPPRQWR
RWKHU GHIHQVLYH RSHUDWLRQV &RPPDQGHUV XVH FRQWDFW SRLQWV DQG SDVVDJH SRLQWV WR IDFLOLWDWH FRRUGLQDWLRQ

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

EHWZHHQDGMDFHQWXQLWVRUXQLWVFRQGXFWLQJDUHDUZDUGSDVVDJHRIOLQHV8QLWVPD\GHVLJQDWHWDUJHWUHIHUHQFH
SRLQWVDQGSUHGHWHUPLQHGWDUJHWVWRGHJUDGHRUVORZHQHP\PRYHPHQWDORQJURXWHVRULQ($V&RPPDQGHUV
HQVXUHWKHLUVXERUGLQDWHXQLWVXVHHVWDEOLVKHGFRPPRQUHFRJQLWLRQVLJQDOVWRSUHYHQWIUDWULFLGHDQGIDFLOLWDWH
UHDUZDUGSDVVDJHRIOLQHV

Executing a Delay
 $ XQLWH[HFXWHVDGHOD\E\PDVVLQJILUHRQWKHHQHP\LQDGHVLJQDWHG($DQGRQFHGLVHQJDJHPHQW
FRQGLWLRQVDUHPHWGLVSODFHVWRVXEVHTXHQWSRVLWLRQVDQGSUHSDUHVWRUHHQJDJHWKHHQHP\:KHQSDUWRIWKH
GHOD\LQJIRUFHGLVSODFHVWRRFFXS\VXEVHTXHQWSRVLWLRQVDUHPDLQLQJIRUFHPDLQWDLQVFRQWDFWZLWKWKHHQHP\
XQWLORUGHUHGWRGHSDUWWKHLUEDWWOHSRVLWLRQRUXQWLOGLVHQJDJHPHQWFRQGLWLRQVDUHPHW8QLWVPRYHEHWZHHQ
VXEVHTXHQWSRVLWLRQVXVLQJHLWKHUDOWHUQDWHRUVXFFHVVLYHERXQGV
 $FRPPDQGHUXVHVDOWHUQDWLQJERXQGVEHWZHHQEDWWOHSRVLWLRQVZKHQDGHTXDWHIRUFHVDUHDYDLODEOHDQG
WKH$2KDVVXIILFLHQWGHSWK:KHQXVLQJDOWHUQDWLQJERXQGVWZRRUPRUHXQLWVLQDVLQJOH$2RFFXS\EDWWOH
SRVLWLRQVLQGHSWK$VWKHILUVWXQLWHQJDJHVWKHHQHP\WKHVHFRQGRFFXSLHVWKHQH[WSRVLWLRQLQGHSWKDQG
SUHSDUHVWRDVVXPHUHVSRQVLELOLW\IRUWKHRSHUDWLRQ7KHILUVWIRUFHGLVHQJDJHVDQGSDVVHVDURXQGRUWKURXJK
WKHVHFRQGIRUFHWRRFFXS\DVXEVHTXHQWSRVLWLRQQRUPDOO\RQDGLIIHUHQWSKDVHOLQHWKDQWKHVHFRQGIRUFH,W
WKHQSUHSDUHVWRUHHQJDJHWKHHQHP\ZKLOHWKHVHFRQGIRUFHWDNHVXSWKHILJKW7KLVSDWWHUQRIDOWHUQDWLQJ
EHWZHHQVXEVHTXHQWSRVLWLRQVDORQJGLIIHUHQWSKDVHOLQHVFRQWLQXHVXQWLOWKHHQHP\LVGHIHDWHGLW ZLWKGUDZV
RUWKHGHOD\KDVVHUYHGLWVSXUSRVHDQGWKHXQLWEUHDNVFRQWDFW1RUPDOO\FRPPDQGHUVXVHDOWHUQDWLQJERXQGV
ZKHQWKHGHOD\LQJIRUFHRSHUDWHVRQDQDUURZIURQW$OWHUQDWLQJERXQGVRIIHUJUHDWHUVHFXULW\WKDQVXFFHVVLYH
ERXQGVEXWUHTXLUHPRUHIRUFHVDQGFRQVWDQWFRRUGLQDWLRQ$OWHUQDWLQJERXQGVPD\DOVRUHTXLUHWKHSODQQLQJ
DQGFRQGXFWRIDUHDUZDUGSDVVDJHRIOLQHVZKLFKFDQVORZRSHUDWLRQV
 &RPPDQGHUVXVHVXFFHVVLYH ERXQGV ZKHQWKH DVVLJQHG $2 LV VR ZLGHWKDWDYDLODEOH IRUFHVFDQQRW
RFFXS\PRUHWKDQDVLQJOHWLHURIEDWWOHSRVLWLRQVDORQJWKHVDPHSKDVHOLQH,QDVXFFHVVLYHGHOD\DOOGHOD\LQJ
XQLWVDUHFRPPLWWHGWREDWWOHSRVLWLRQVRQWKHVDPHSKDVHOLQH2QFHGLVHQJDJHPHQWFRQGLWLRQVDUHPHWWKH
FRPPDQGHU RUGHUV WKH VWDJJHUHG PRYHPHQW RI XQLWV WR VXEVHTXHQW SRVLWLRQV RQ D GLIIHUHQW SKDVH OLQH
+RZHYHUDOOXQLWVDJDLQRFFXS\DVLQJOHWLHURISRVLWLRQVRQWKHVDPHSKDVHOLQH$VXFFHVVLYHGHOD\KDVWKH
EHQHILWRIPDVVLQJDOODYDLODEOHFRPEDWSRZHUDJDLQVWWKHHQHP\EXWLWLVOHVVIOH[LEOHWKDQXVLQJDOWHUQDWLQJ
ERXQGV
 *LYHQWKHMXQJOH¶VUHVWULFWLYHWHUUDLQDQGOLPLWHGILHOGVRIILUHWKHFRPPDQGHUPD\FRQGXFWDVHULHVRI
DPEXVKHVLIDSSURSULDWH($VGRQRWH[LVW,IWKHFRPPDQGHUVHOHFWVWKLVPHWKRGXQLWVUHFRQQRLWHUDPEXVK
VLWHV DQG URXWHV DQG UHKHDUVH DFWLRQV RQ FRQWDFW LQVWHDG RI FRQGXFWLQJ ($ GHYHORSPHQW 7KH ORFDWLRQ RI
DPEXVKVLWHVPD\YDU\GHSHQGLQJRQWKHHQHP\¶VDYHQXHRIDSSURDFK0RYHPHQWEHWZHHQDPEXVKVLWHVLV
FRQWUROOHG LQ D PDQQHU VLPLODU WR PRYHPHQW EHWZHHQ VXEVHTXHQW EDWWOH SRVLWLRQV &RPPDQGHUV RSWLQJ WR
FRQGXFWDVHULHVRIDPEXVKHVWRGHOD\WKHHQHP\UHFRJQL]HWKDWWKLVPHWKRGKDVPRUHFKDOOHQJHVIRUFRQWURO
DQGUHTXLUHVIULHQGO\IRUFHVWRSRVVHVVVLJQLILFDQWO\JUHDWHUPRELOLW\WKDQWKHHQHP\

:LWKGUDZ
 Withdraw LV WR GLVHQJDJH IURP DQ HQHP\ IRUFH DQG PRYH LQ D GLUHFWLRQ DZD\ IURP WKH HQHP\
$'3 :LWKGUDZLQJ XQLWV ZKHWKHU DOO RU SDUWRI D FRPPLWWHG IRUFH YROXQWDULO\ GLVHQJDJH IURP DQ
HQHP\ WR SUHVHUYH WKH IRUFH RU UHOHDVH LW IRU D QHZ PLVVLRQ 8QLWV PD\ FRQGXFW D ZLWKGUDZDO XQGHU WKH
IROORZLQJFLUFXPVWDQFHV
z 'DQJHURIEHLQJGHIHDWHG
z %DWWOHXQGHUXQIDYRUDEOHFRQGLWLRQV
z 2SSRUWXQLW\WRGUDZWKHHQHP\LQWRWHUUDLQRUDSRVLWLRQRIUHODWLYHGLVDGYDQWDJH
z 5HSRVLWLRQRUUHGHSOR\PHQWRIWKHIRUFHIRUHPSOR\PHQWHOVHZKHUH

 :LWKGUDZDOVDUHLQKHUHQWO\GDQJHURXVEHFDXVHWKH\LQYROYHPRYLQJXQLWVWRWKHUHDUDQGDZD\IURP
ZKDWLVXVXDOO\DVWURQJHUHQHP\IRUFH&RPPDQGHUVW\SLFDOO\RUJDQL]HDZLWKGUDZLQJXQLWLQWRDVHFXULW\
IRUFHDPDLQERG\DQGDUHVHUYH&RPPDQGHUVDOVRRUJDQL]HDGHWDFKPHQWOHIWLQFRQWDFWDQGVWD\EHKLQG
IRUFHVLIWKHVFKHPHRIPDQHXYHUUHTXLUHVLW7KHKHDYLHUWKHSUHYLRXVILJKWLQJDQGWKHFORVHUWKHFRQWDFWZLWK
WKHHQHP\WKHPRUHGLIILFXOWWKHZLWKGUDZDO)ULHQGO\IRUFHVPXVWSRVVHVVJUHDWHUPRELOLW\WKDQWKHDWWDFNLQJ
HQHP\WRZLWKGUDZVXFFHVVIXOO\

6HSWHPEHU $730&73& 

&KDSWHU

 7KHFRYHUDQGFRQFHDOPHQWDIIRUGHGE\WKHMXQJOHFDQDLGLQDQHIIHFWLYHZLWKGUDZDO8QLWVFDQXVH
WKLVFRYHUDQGFRQFHDOPHQWWRLPSURYH236(&DQGPRYHIRUFHVXQREVHUYHGE\WKHHQHP\7KLVLVHVSHFLDOO\
LPSRUWDQWGXULQJWKHLQLWLDOVWDJHVRIDZLWKGUDZDOZKHUHIXQFWLRQDOPXOWLIXQFWLRQDODQGVXVWDLQPHQWXQLWV
GLVSODFHILUVW8QLWVWLPHDQGFRQGXFWZLWKGUDZDOVGXULQJFRQGLWLRQVZKHQWKH\DUHPRUHGLIILFXOWWRGHWHFW
VXFKDVDWQLJKWRULQSHULRGVRIOLPLWHGYLVLELOLW\:LWKGUDZDOVDUHHQKDQFHGE\GHFHSWLRQRSHUDWLRQVWKDW
PDNHWKHHQHP\EHOLHYHWKHZLWKGUDZLQJIRUFHLVUHPDLQLQJLQSRVLWLRQRUGHFHLYHVWKHPLQWREHOLHYLQJWKH
IRUFHLVPRYLQJWRDORFDWLRQRWKHUWKDQWKHLUDFWXDOZLWKGUDZDOREMHFWLYH
 (IIHFWLYHZLWKGUDZDOVUHTXLUHWKHHDUO\GLVSODFHPHQWDQGUHSRVLWLRQLQJRIHQDEOHUVVXFKDVPLOLWDU\
SROLFH DQG HQJLQHHUV WR UHFRQQRLWHU ZLWKGUDZDO URXWHV DQG LPSURYH WHPSODWHG DVVHPEO\ DUHDV DQG EDWWOH
SRVLWLRQV 7R DLG LQ WKH PRYHPHQW DQG FRQWURO RI ZLWKGUDZLQJ IRUFHV ZLWKGUDZDO URXWHV DQG QHZ EDWWOH
SRVLWLRQVVKRXOGEHPDUNHGVRORQJDVWKLVGRHVQRWMHRSDUGL]H236(&:KHQZLWKGUDZLQJXQLWVXVHVWD\
EHKLQGIRUFHVRUVHFXULW\IRUFHVWRPDLQWDLQFRQWDFWZLWKWKHHQHP\DQGSURWHFWWKHZLWKGUDZLQJIRUFHE\
SHUIRUPLQJDFWLYLWLHVVXFKDVVFUHHQVJXDUGVDQGFRYHUV&RPPDQGHUVSODQDQGHPSOR\ILUHVWRGLVUXSWD
SXUVXLQJHQHP\ZKHQZLWKGUDZLQJXQGHUSUHVVXUH

5HWLUHPHQW
 $ retirementLVZKHQDIRUFHRXWRIFRQWDFWPRYHVDZD\IURPWKHHQHP\$'3$ retirementLV
DQ RSHUDWLRQ LQ ZKLFK D IRUFH RXW RI FRQWDFW PRYHV DZD\ IURP WKH HQHP\ 0&53  5HWLUHPHQW
RSHUDWLRQV DUH DGPLQLVWUDWLYH LQ QDWXUH &RPPDQGHUV XVXDOO\ FRQGXFW UHWLUHPHQW RSHUDWLRQV WR UHSRVLWLRQ
IRUFHVIRUIXWXUHRSHUDWLRQVRUWRDFFRPPRGDWHDQXSGDWHGFRQFHSWRIRSHUDWLRQVRUVFKHPHRIPDQHXYHU
 7KHQRQOLQHDUQDWXUHRIPRVWMXQJOHRSHUDWLRQVLQFUHDVHVWKHULVNWKDWHQHP\IRUFHVZLOODWWDFNDUHWLULQJ
IRUFH 6PDOO XQLWV DQG HQHP\ SDWUROV FDQ LQILOWUDWH GHHS LQWR IULHQGO\ $2V DQG DWWDFN UHWLULQJ IRUFHV
XQSUHSDUHGIRUFRPEDW$UHWLULQJXQLWRUJDQL]HVIRUFRPEDWDQGFRPPDQGHUVDQGVWDIIFRQVLGHUVHFXULW\
WKURXJKRXW WKH SODQQLQJ SURFHVV 5HWLULQJ XQLWV RIWHQ HPSOR\ DGYDQFH IODQN DQG UHDU VHFXULW\ IRUFHV WR
SURWHFW WKH UHWLULQJ IRUFH 7\SLFDOO\ DQRWKHU XQLW¶V VHFXULW\ IRUFH SURYLGHV VHFXULW\ IRU D UHWLULQJ XQLW
KRZHYHUFRPPDQGHUVPXVWSODQIRUHQHP\FRQWDFWDQGRUJDQL]HWKHXQLWIRUVHOIGHIHQVHZKHQFRQGXFWLQJ
DUHWLUHPHQWLQWKHMXQJOH

'()(1',1*(1&,5&/('
 *LYHQWKHQRQOLQHDUQDWXUHRIMXQJOHRSHUDWLRQVWKHMXQJOH¶VUHVWULFWLYHWHUUDLQDQGWKDWPRVWRSHUDWLRQV
DUHFRQGXFWHGE\VPDOOXQLWVRSHUDWLQJDFURVVZLGHDUHDVHQFLUFOHPHQWRIDIULHQGO\IRUFHRFFXUVPRUHRIWHQ
LQWKHMXQJOHWKDQRWKHUHQYLURQPHQWV$XQLWPD\ILQGLWVHOIHQFLUFOHGDVDUHVXOWRILWVRIIHQVLYHDFWLRQVDV
D GHWDFKPHQWOHIWLQFRQWDFW ZKHQGHIHQGLQJD VWURQJSRLQW ZKHQRFFXS\LQJDFRPEDW RXWSRVW RU ZKHQ
GHIHQGLQJDQLVRODWHGGHIHQVLYHSRVLWLRQ7KHSULQFLSOHVRIGHIHQGLQJHQFLUFOHGDOVRDSSO\WREDVHDQGEDVH
FOXVWHUGHIHQVHLQVXSSRUWDQGFRQVROLGDWLRQDUHDV$QHQFLUFOHGIULHQGO\IRUFHLVHLWKHUUHOLHYHGE\DQRWKHU
IULHQGO\IRUFHH[ILOWUDWHVDOORUSDUWRIWKHHQFLUFOHGIRUFHRUEUHDNVRXWDQGFRQWLQXHVWR DWWDFNRUOLQNXS
ZLWKRWKHUIULHQGO\IRUFHV

25*$1,=$7,212))25&(6:+(1'()(1',1*(1&,5&/('
 7KH FRPPDQGHU RI DQ HQFLUFOHG IRUFH HVWDEOLVKHV D SHULPHWHU GHIHQVH 7KH FRPPDQGHU NQRZV WKH
VSHFLILFFDSDELOLWLHVDQGOLPLWDWLRQVRIWKHGLIIHUHQWIULHQGO\XQLWVLVRODWHGLQWKHHQFLUFOHPHQW7KHUHIRUHWKH
FRPPDQGHU GHVLJQV WKH GHIHQVH WR PD[LPL]H WKH FDSDELOLWLHV RI DYDLODEOH IRUFHV )RUZDUG XQLWV HVWDEOLVK
PXWXDOO\VXSSRUWLQJSRVLWLRQVDURXQGWKHSHULPHWHUDQGLQGHSWKDORQJSULQFLSDODYHQXHVRIDSSURDFK8QLWV
RFFXS\WKHEHVWDYDLODEOHGHIHQVLYHWHUUDLQ&RPPDQGHUVPD\DWWDFNWRVHL]HNH\RUGHFLVLYHWHUUDLQVRWKDW
LWLVLQFRUSRUDWHGLQWRWKHSHULPHWHUGHIHQVH2QFHWKHFRPPDQGHUDVVLJQVGHIHQVLYH$2VDQGEDWWOHSRVLWLRQV
WKHSUHSDUDWLRQVDUHWKHVDPHDVLQWKHDUHDGHIHQVH(QFLUFOHGXQLWVPDNHWKHLUGHIHQVLYHSRVLWLRQVDVVWURQJ
DVSRVVLEOHJLYHQWLPHDQGUHVRXUFHFRQVWUDLQWV7KHFRPPDQGHUDQWLFLSDWHVWKDWWKHHQHP\ZLOODWWHPSWWR
VSOLWWKHGHIHQVHVRIWKHHQFLUFOHGIRUFHDQGGHIHDWLWLQGHWDLO
 7KHHQFLUFOHGIRUFHFRPPDQGHUHVWDEOLVKHVDUHVHUYHWKDWLVPRELOHHQRXJKWRUHDFWTXLFNO\WRHYHQWV
DQ\ZKHUHDORQJWKHSHULPHWHU7KHHQFLUFOHGFRPPDQGHUFHQWUDOO\SRVLWLRQVWKLVUHVHUYHWRWDNHDGYDQWDJH
RILQWHULRUOLQHVZLWKRSHUDWLRQVGLYHUJLQJIURPDFHQWUDOSRLQW7KHXVHRILQWHULRUOLQHVSURYLGHVIOH[LELOLW\
DQGHQDEOHVWKHHQFLUFOHGFRPPDQGHUWRUHVSRQGUDSLGO\WRHQHP\DWWDFNVDWDQ\SRLQWDORQJWKHSHULPHWHU

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

,IRQO\GLVPRXQWHGIRUFHVDUHDYDLODEOHWKHHQFLUFOHGFRPPDQGHUHVWDEOLVKHVVPDOOORFDOUHVHUYHVSRVLWLRQHG
DWNH\SRLQWVDURXQGWKHSHULPHWHUWRUHDFWWRSRWHQWLDOWKUHDWV7KHHQFLUFOHGFRPPDQGHURUJDQL]HVDPRELOH
DQWLDUPRUHOHPHQWIURPWKHEHVWDYDLODEOHDQWLDUPRUV\VWHPV,ISRVVLEOHVXERUGLQDWHXQLWVDOVRUHWDLQWKHLU
RZQUHVHUYHV

%5($.287)520$1(1&,5&/(0(17
 $ breakoutLVDQRSHUDWLRQFRQGXFWHGE\DQHQFLUFOHGIRUFHWRUHJDLQIUHHGRPRIPRYHPHQWRUFRQWDFW
ZLWKIULHQGO\XQLWV$'3 ,WGLIIHUVIURPRWKHUDWWDFNVRQO\LQWKDWDVLPXOWDQHRXVGHIHQVHLQRWKHUDUHDV
RIWKHSHULPHWHUPXVWEHPDLQWDLQHG0&53$IWHUEUHDNLQJRXWDQHQFLUFOHGFRPPDQGHUFDQHLWKHU
FRQWLQXH WR DWWDFN GHHSHU LQWR HQHP\ WHUULWRU\ RU OLQN XS ZLWK RWKHU IULHQGO\ IRUFHV $Q HQFLUFOHG IRUFH
QRUPDOO\DWWHPSWVWRFRQGXFWEUHDNRXWRSHUDWLRQVZKHQRQHRIWKHIROORZLQJIRXUFRQGLWLRQVH[LVW
z 7KH VHQLRU FRPPDQGHU GLUHFWV WKH EUHDNRXW RU WKH EUHDNRXW IDOOV ZLWKLQ WKH LQWHQW RI D KLJKHU
HFKHORQFRPPDQGHU
z 7KHHQFLUFOHGIRUFHODFNVVXIILFLHQWUHODWLYHFRPEDWSRZHUWRGHIHQGLWVHOIDJDLQVWHQHP\IRUFHV
DWWHPSWLQJWRUHGXFHWKHHQFLUFOHPHQW
z 7KHHQFLUFOHGIRUFHODFNVDGHTXDWHWHUUDLQWRFRQGXFWLWVGHIHQVH
z 7KH HQFLUFOHG IRUFH FDQQRW VXVWDLQ LWVHOI ORQJ HQRXJK WR EH UHOLHYHG E\ IRUFHV RXWVLGH WKH
HQFLUFOHPHQW

$77$&.,1*'((3(5,172(1(0<7(55,725<
 $&2$WKDWDQHQHP\GRHVQRWH[SHFWIURPDQHQFLUFOHGIRUFHLVWRDWWDFNGHHSHULQWRHQHP\WHUULWRU\
WRVHL]HNH\WHUUDLQ7KLVW\SHRIDWWDFNLQYROYHVJUHDWULVNEXWLWPD\RIIHUWKHRQO\IHDVLEOH&2$XQGHU
VRPHFLUFXPVWDQFHV$WWDFNLQJPD\DOORZDQHQFLUFOHGXQLWWRPRYHWRDORFDWLRQZKHUHLWFDQEHH[WUDFWHG
E\ RWKHU JURXQG QDYDO RU DLU IRUFHV $WWDFNLQJ GHHSHU LV RQO\ IHDVLEOH LI D XQLW FDQ VXVWDLQ LWVHOI ZKLOH
LVRODWHGDOWKRXJKVRPHRIWKDWVXVWDLQPHQWFDQFRPHIURPDHULDOUHVXSSO\DQGHQHP\VXSSO\VWRFNV

(;),/75$7,21
 ExfiltrateLVDWDFWLFDOPLVVLRQWDVNZKHUHDFRPPDQGHUUHPRYHV6ROGLHUVRUXQLWVIURPDUHDVXQGHU
HQHP\FRQWUROE\VWHDOWKGHFHSWLRQVXUSULVHRUFODQGHVWLQHPHDQV)0,IWKHVXFFHVVRIDEUHDNRXW
DSSHDUVTXHVWLRQDEOHRULILWIDLOVDQGDUHOLHIRSHUDWLRQLVQRWSODQQHGRQHZD\WRSUHVHUYHDSRUWLRQRIWKH
IRUFH XVHV RUJDQL]HG H[ILOWUDWLRQ &RPPDQGHUV FDQ HIIHFWLYHO\ H[ILOWUDWH DOO RU SDUW RI DQ HQFLUFOHG IRUFH
GXULQJ MXQJOH RSHUDWLRQV VLQFH WKH UHVWULFWLYH WHUUDLQ DQG FRYHU DQG FRQFHDOPHQW SURYLGHG E\ WKH IROLDJH
HQDEOHSHQHWUDWLQJHQHP\OLQHVXQGHWHFWHG([ILOWUDWLRQVDUHEHVWFRQGXFWHGGXULQJSHULRGVRIGDUNQHVVRU
OLPLWHGYLVLELOLW\DQGXVHFRQWUROPHDVXUHVVLPLODUWRDQLQILOWUDWLRQ&RPPDQGHUVGHVLJQDWHH[ILOWUDWLRQODQHV
DQGUDOO\SRLQWVWRRUJDQL]HWKHPRYHPHQWRIVPDOOXQLWV,ISRVVLEOHOLQNXSSRLQWVDUHHVWDEOLVKHGZLWKRWKHU
IULHQGO\IRUFHV&RPPDQGHUVLPSOHPHQWUHVWULFWLYHILUHRUQRILUHDUHDVWRSUHYHQWIUDWULFLGH
 'HFHSWLRQ RSHUDWLRQV HQKDQFH WKH HIIHFWLYHQHVV RI DQ H[ILOWUDWLRQ &RPPDQGHUV SODQ D GHFHSWLRQ
RSHUDWLRQWRGLYHUWWKHHQHP\¶VDWWHQWLRQDZD\IURPWKHSODQQHGH[ILOWUDWLRQODQHVRUOLQNXSSRLQWV'HFHSWLRQ
RSHUDWLRQVGHFHLYHWKHHQHP\LQWREHOLHYLQJWKDWWKHHQFLUFOHGIRUFHUHPDLQVHQFLUFOHGDQGWKDWDWWHPSWVWR
EUHDNRXWRUH[ILOWUDWHKDYHIDLOHG7KHULVNVZHLJKHGIRUGHFHSWLRQRSHUDWLRQVGXULQJDQH[ILOWUDWLRQLQYROYH
UHTXLULQJVRPHRIWKHHQFLUFOHGIRUFHWRVWD\EHKLQG

)25062)7+('()(16('()(16,9(0(7+2'6
 7KHUHDUHWKUHHIRUPVRIWKHGHIHQVH±SHULPHWHUOLQHDUDQGUHYHUVHVORSH7KH0DULQH&RUSVLGHQWLILHV
DQDGGLWLRQDOWKUHHGHIHQVLYHPHWKRGVEDWWOHSRVLWLRQVWURQJSRLQW DQGVHFWRU &RPPDQGHUVFDQHPSOR\
WKHVH EDVLF GLVSRVLWLRQV WR DUUD\ IRUFHV LQ D GHIHQVH UHODWLYH WR WKH WHUUDLQ DQG HQHP\ LQ WKH MXQJOH
HQYLURQPHQW

3(5,0(7(5
 $SHULPHWHUGHIHQVHLVRULHQWHGLQDOOGLUHFWLRQV$SHULPHWHUGHIHQVHPD\EHLQDQ\QXPEHURIVKDSHV
$VXFFHVVIXOSHULPHWHUGHIHQVHUHTXLUHVDJJUHVVLYHSDWUROOLQJDQGVHFXULW\RSHUDWLRQVRXWVLGHWKHSHULPHWHU

6HSWHPEHU $730&73& 

&KDSWHU

7KHFRPPDQGHUHVWDEOLVKHVDSHULPHWHUZKHQWKHXQLWPXVWKROGFULWLFDOWHUUDLQVXFKDVDVWURQJSRLQWRU
ZKHQLWPXVWGHIHQGLWVHOILQDUHDVZKHUHWKHGHIHQVHLVQRWWLHGLQZLWKDGMDFHQWXQLWV,QWKHMXQJOHOHDGHUV
FRPPRQO\XVHSHULPHWHUGHIHQVHVWRVHFXUHILUHEDVHV$GYDQWDJHVLQFOXGH²
z GHJUHHVHFXULW\
z &HQWUDOL]HGFRQWURO
z 4XLFNHPSODFHPHQWDQGLWFDQEHH[HFXWHGE\DQ\VL]HXQLW
z 7KHIURQWDJHRIWKHSHULPHWHUFDQEHHDVLO\DGMXVWHGDQGUHLQIRUFHG
z ,WLVPXWXDOO\VXSSRUWHGE\REVHUYDWLRQFRPPXQLFDWLRQVDQGHDVLO\FRRUGLQDWHGSDWUROV
z ,QWHULRUOLQHVSURYLGHIOH[LELOLW\DQGDOORZWKHFRPPDQGHUWRVKLIWIRUFHVUDSLGO\ZKHUHQHHGHGRQ
WKHSHULPHWHU
 'LVDGYDQWDJHVLQFOXGH²
z $Q\SHQHWUDWLRQFUHDWHVSUREOHPVRIHQILODGHPDVNLQJDQGFURVVILUHV
z ,WLVGLIILFXOWWRDFKLHYHILQDOSURWHFWLYHILUHVZLWKFUHZVHUYHGZHDSRQV
z %HFDXVHRIWKHFLUFXODUFRQILJXUDWLRQWKHXQLWLVYXOQHUDEOHWRWKHHQWLUHHIIHFWVRIWKHEXUVWLQJ
UDGLXVRIDQLQGLUHFWILUHZHDSRQ
 3HULPHWHUGHIHQVHLVWKHPRVWFRPPRQIRUPRIGHIHQVHGHIHQVLYHPHWKRGXVHGLQWKHMXQJOH'XHWR
WKHWKLFN IROLDJH FRPPRQ LQ WKH MXQJOHWKHFRPPDQGHU PD\UHGXFHWKH VL]H RI WKHSHULPHWHUGHIHQVHE\
SRVLWLRQLQJVXERUGLQDWHXQLWVFORVHUWRJHWKHUWRDFFRXQWIRUUHGXFHGILHOGVRIILUHDQGHQVXUHPXWXDOVXSSRUW
3HULPHWHUVYDU\LQVKDSHGHSHQGLQJRQWKHWHUUDLQDQGVLWXDWLRQ LQFOXGLQJEXWQRWOLPLWHGWRDWULDQJOHD
FLUFOHDQHORQJDWHGRYDORUD<7KHSHULPHWHUVKDSHFRQIRUPVWRWKHWHUUDLQIHDWXUHVWKDWEHVWFDSLWDOL]HRQ
IULHQGO\REVHUYDWLRQDQGILHOGVRIILUH
 7RHVWDEOLVKDSHULPHWHUGHIHQVHFRPPDQGHUVILUVWSODFHFUHZVHUYHGZHDSRQVZKHUHWKH\KDYHWKH
EHVWILHOGVRIILUH7KH\WKHQSRVLWLRQWKHUHVWRIWKHXQLWLQPXWXDOO\VXSSRUWLQJILJKWLQJSRVLWLRQV$VVRRQ
DVSRVVLEOHWKHXQLWHVWDEOLVKHVREVHUYDWLRQSRVWVOLVWHQLQJSRVWVGLVPRXQWHGSDWUROVDQGRWKHUORFDOVHFXULW\
PHDVXUHV 6ROGLHUV0DULQHVHPSODFH PLQHVDQGREVWDFOHV 7KH FRPPDQGHUSODQVDQGFRRUGLQDWHV)6&0V
VXFKDVWDUJHWUHIHUHQFHSRLQWVSUHGHWHUPLQHGWDUJHWVILQDOSURWHFWLYHILUHVDQG)3/,IWLPHLV DYDLODEOH
6ROGLHUV0DULQHVSUHSDUHDOWHUQDWHILJKWLQJSRVLWLRQVWRH[SDQGDQGFRQWUDFWWKHSHULPHWHU&RPPDQGHUVPD\
FRQWUDFW WKH SHULPHWHU DW QLJKW WR JXDUG DJDLQVW HQHP\ LQILOWUDWLRQ ,QGLUHFW ILUHV DUH UHJLVWHUHG DQG
6ROGLHUV0DULQHVFRQWLQXHZLWKSULRULWLHVRIZRUN)RUPRUHLQIRUPDWLRQRQSUHSDULQJDSHULPHWHUGHIHQVH
VHH$73
 ,IXQLWVKDYHWDQNVDQGILJKWLQJYHKLFOHVDYDLODEOHWKHFRPPDQGHUDGMXVWVWKHSHULPHWHUGHIHQVHWR
LQWHJUDWH GLVPRXQWHG DQG PRXQWHG WURRSV LQ D FRPSOHPHQWDU\ PDQQHU 'HVSLWH WKHLU ILUHSRZHU DQG
SURWHFWLRQWKHOLPLWHGREVHUYDWLRQDQGILHOGVRIILUHLQWKHMXQJOHPDNHDUPRUHGYHKLFOHVYXOQHUDEOHWRDWWDFN
E\GLVPRXQWHGIRUFHV&RPPDQGHUVSRVLWLRQWDQNVDQGILJKWLQJYHKLFOHVIXUWKHUEDFNLQWKHSHULPHWHUGHIHQVH
DQGLISRVVLEOHLQILJKWLQJSRVLWLRQVDWKXOORUWXUUHWGHILODGH,IQDWXUDOFRQGLWLRQVGRQRWH[LVWIRUKXOORU
WXUUHW GHILODGH SRVLWLRQV DQG HQJLQHHU VXSSRUW LV DYDLODEOH WURRSV FRQVWUXFW SDUDSHWV WR SURWHFW DJDLQVW
DQWLWDQNVZHDSRQV,IWLPHLVDYDLODEOHILJKWLQJYHKLFOHDQGWDQNFUHZVSUHSDUHDOWHUQDWHSRVLWLRQVIRUWKHLU
YHKLFOHV$OWHUQDWHSRVLWLRQVDOORZYHKLFOHVWRPRYHEHWZHHQSRVLWLRQVDIWHUILULQJWKHLUPDLQJXQWRSUHYHQW
WKHHQHP\IURPDFFXUDWHO\WDUJHWLQJWKHYHKLFOHV8QLWVFDPRXIODJHILJKWLQJYHKLFOHVZLWKQHWWLQJRURWKHU
DYDLODEOHPDWHULDOV6ROGLHUV0DULQHVSUHSDUHLQGLYLGXDOILJKWLQJSRVLWLRQVLQIURQWRIYHKLFOHVDQGHUHFWSUH
GHWRQDWLRQVFUHHQPDWHULDOWRSURYLGHVWDQGRIIDJDLQVWHQHP\XVHRIURFNHWSURSHOOHGJUHQDGHVDQGDQWLWDQN
JXLGHGPLVVLOHV
 $QHQHP\DWWDFNDJDLQVWDSHULPHWHUGHIHQVHPD\EHDVXUSULVHDVVDXOWRUEHSUHFHGHGE\SUHSDUDWRU\
ILUHV7KHXQLWVKRXOGPDLQWDLQDOOKHDY\ZHDSRQVPDQQHGDQGUHDG\WRILUHEXW 6ROGLHUV0DULQHVHQVXUH
SDWUROV DQG REVHUYDWLRQ SRVWV KDYH UHWXUQHG ZLWKLQ WKH SHULPHWHU EHIRUH ILULQJ )3/ 0RYLQJ WUDFNHG DQG
ZKHHOHGYHKLFOHVGXULQJDQLJKWDWWDFNRQDGHIHQVLYHSRVLWLRQFDQEHH[FHHGLQJO\GDQJHURXVWRWKHYHKLFOHV
DVZHOODVRWKHU6ROGLHUV0DULQHV
 7KH<VKDSHGSHULPHWHUGHIHQVHLVDYDULDWLRQRIWKHSHULPHWHUGHIHQVHWKDWXQLWVFDQLPSOHPHQWZKHQ
WKHWHUUDLQLVQRWFRQGXFLYHWRGHSOR\LQJIRUFHVLQDFLUFXODUPDQQHU$OWKRXJKLWPD\QRWDSSHDUWREHD
SHULPHWHUGHIHQVHWKH<VKDSHGGHIHQVHHIIHFWLYHO\UHSHOVDQHQHP\DWWDFNIURPDQ\GLUHFWLRQ7KH<VKDSHG
SHULPHWHU GHIHQVH LV XVXDOO\ HPSOR\HG DW WKH SODWRRQ RU FRPSDQ\ OHYHO 7KH <VKDSHG GHIHQVH SURYLGHV

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

GHJUHHILUHVE\DVVLJQLQJ6ROGLHUV0DULQHVVXSSOHPHQWDU\ILJKWLQJSRVLWLRQVWKDWFRYHUILHOGVRIILUHWR
WKH UHDU RI WKHLU SULPDU\ ILJKWLQJ SRVLWLRQV VHH ILJXUH $V VXFK FRPPDQGHUV GHVLJQDWH DQG SUHSDUH
PXOWLSOH ($V IRU XQLWV FRQGXFWLQJ D <VKDSHG GHIHQVH 'HWHUPLQLQJ ZKLFK ($ WR XWLOL]H UHTXLUHV DFWLYH
VHFXULW\ PHDVXUHV &RPPDQGHUV PXVW SODQ IRU DGGLWLRQDO REVHUYDWLRQ SRVWV DQG SDWUROV 7KH <VKDSHG
SHULPHWHU GHIHQVH SURYHV SDUWLFXODUO\ XVHIXO LQ PRXQWDLQRXV MXQJOHV ZKHUH WKLFN IROLDJH DQG WHUUDLQ OLPLW
REVHUYDWLRQDQGILHOGVRIILUH6HH$73IRUPRUHLQIRUPDWLRQRQWKH<VKDSHGGHIHQVH

)LJXUH<VKDSHGSHULPHWHUGHIHQVH

 7KH<VKDSHGSHULPHWHUGHIHQVHUHTXLUHVUHVWULFWLYHILUHFRQWUROPHDVXUHVWRSUHYHQWIUDWULFLGH/HDGHUV
HQVXUHWKHOLPLWVRIILUHIRUHDFKZHDSRQV\VWHPDQGSRVLWLRQGRQRWILUHLQWRDGMDFHQWXQLW¶VSRVLWLRQV:KHQ
SODQQLQJD<VKDSHGGHIHQVHFRPPDQGHUVLQFRUSRUDWHWHUUDLQDQGHOHYDWLRQWRWKHLUDGYDQWDJHDQGSUHIHUDEO\
DUUD\WKHLUGHIHQVHWRILUHGRZQZDUGLQWR($V$GGLWLRQDOFRQVLGHUDWLRQVIRUWKH<VKDSHGGHIHQVHLQFOXGH

6HSWHPEHU $730&73& 

&KDSWHU

z 3RVLWLRQLQJFUHZVHUYHGZHDSRQVQHDUWKHDSH[RIWKH³<´WRDOORZDQ)3/WKDWFRYHUVWKHXQLW¶V
IURQWDJHZKLOHILULQJDZD\IURPWKHDGMDFHQWXQLW¶VSRVLWLRQ
z ,GHQWLI\LQJILJKWLQJSRVLWLRQVPRVWDWULVNWRIULHQGO\ILUHDQGSUHSDULQJWKRVHSRVLWLRQVWRSURWHFW
6ROGLHUV0DULQHVIURPILUHIURPWKRVHGLUHFWLRQV
z ([HFXWLQJD<VKDSHGGHIHQVHOLNHDQDPEXVKE\DOORZLQJWKHHQHP\WRSHQHWUDWHZHOOLQWRWKH
($EHIRUHDWWDFNLQJ

/,1($5
 $ FRPPDQGHU PD\ FRQGXFW HLWKHU DQ DUHD RU PRELOH GHIHQVH DORQJ RU EHKLQG D OLQHDU REVWDFOH
1RUPDOO\FRPPDQGHUVSUHIHUDQDUHDGHIHQVHEHFDXVHLWDFFHSWVOHVVULVNE\QRWDOORZLQJWKHHQHP\WRFURVV
WKH REVWDFOH /LQHDU REVWDFOHV VXFK DV PRXQWDLQ UDQJHV ODUJH DUHDV RI LPSDVVDEOH WHUUDLQ RU ZDWHUZD\V
JHQHUDOO\ IDYRU D IRUZDUG GHIHQVH 7KH GHIHQGLQJ IRUFH VHHNV WR GHIHDW DQ\ HQHP\ DWWHPSW WR VHL]H D
EULGJHKHDGDFURVVWKHOLQHDU REVWDFOH/RFDOGHIHQGLQJ XQLWVLPPHGLDWHO\DQGYLROHQWO\ FRXQWHUDWWDFNDQ\
HQHP\ EULGJHKHDGV WR GHVWUR\ HQHP\ IRUFHV ORFDWHG RQ WKH EULGJHKHDG ZKLOH KLJKHU HFKHORQV DWWHPSW WR
LVRODWHHQHP\EULGJHKHDGVLWHV,IWKHHQHP\VHL]HVDEULGJHKHDGDQGVWULNHVRXWUDSLGO\LWFRXOGTXLFNO\
SHQHWUDWHWKHGHIHQGLQJIRUFH7KLVUHTXLUHVWKHFRPPDQGHUWRFRQGXFWHLWKHUDGHOD\RUDZLWKGUDZDO
 'HSOR\LQJLQVWUHQJWKDORQJWKHHQWLUHOHQJWKRIDOLQHDUREVWDFOHLVGLIILFXOW7KHGHIHQGLQJFRPPDQGHU
PXVWFRQGXFWHFRQRP\RIIRUFHPHDVXUHVLQVRPHDUHDV:LWKLQDQDUHDGHIHQVHWKHFRPPDQGHU¶VXVHRID
GHIHQVH LQGHSWKDFFHSWVWKH ULVN WKDW WKHHQHP\ PD\IRUFHDFURVVLQJDWD JLYHQSRLQW7KHGHSWKRIWKH
GHIHQVH VKRXOG SUHYHQW WKH HQHP\ IURP UDSLGO\ H[SORLWLQJ LWV VXFFHVV +RZHYHU WKH PRELOLW\ FKDOOHQJHV
DVVRFLDWHGZLWKWKHMXQJOHPDNHLWGLIILFXOWIRUFRPPDQGHUVWRUDSLGO\UHLQIRUFHDUHDVZKHUHWKHHQHP\KDV
FURVVHGWKHOLQHDUREVWDFOH7REHVXFFHVVIXODOLQHDUGHIHQVHLQWKHMXQJOHUHTXLUHVDFFXUDWHLQWHOOLJHQFHIRU
SRVLWLRQLQJIRUFHVDQGFRQVWUXFWLQJDGHIHQVHWKDWHQDEOHVUHLQIRUFHPHQWDWWKHSRLQWZKHUHWKHHQHP\LVPRVW
OLNHO\WRFURVVWKHOLQHDUREVWDFOH2WKHUZLVHHQHP\DLURULQGLUHFWILUHFDQHDVLO\WDUJHWXQLWVXVLQJLPSURYHG
URDGVWRPDQHXYHUEHWZHHQDUHDV
 7KHPRELOHGHIHQVHJLYHVWKHHQHP\DQRSSRUWXQLW\WRFURVVWKHREVWDFOHZLWKDSRUWLRQRIWKHDWWDFNLQJ
HQHP\IRUFH7KHFRPPDQGHUFRQGXFWLQJDPRELOHGHIHQVHDORQJDOLQHDUREVWDFOHQRUPDOO\HPSOR\VPLQLPDO
IRUFHVDORQJWKHREVWDFOHDVWKHIL[LQJIRUFHDQGHQWLFHVWKHHQHP\WRFURVVDWWKHGHIHQGLQJIRUFH¶VGHVLUHG
ORFDWLRQ2QFHWKHHQHP\KDVSDUWLDOO\FURVVHGWKHREVWDFOHDQGGLYLGHGLWVIRUFHVWKHFRPPDQGHUFRQGXFWV
VKDSLQJ RSHUDWLRQV WR LVRODWH WKH HQHP\ EULGJHKHDG 2QFH WKH EULGJHKHDG LV LVRODWHG WKH GHIHQGLQJ
FRPPDQGHUODXQFKHVDGHFLVLYHDWWDFNE\WKHVWULNLQJIRUFHWRGHVWUR\WKHLVRODWHGHQHP\EULGJHKHDG$VLQ
WKHDUHDGHIHQVHRIDOLQHDUREVWDFOHPRELOLW\FKDOOHQJHVDVVRFLDWHGZLWKWKHMXQJOHPDNHLWGLIILFXOWIRUWKH
FRPPDQGHUWRUDSLGO\PDQHXYHUDVWULNLQJIRUFH7RPLWLJDWHWKLVDFRPPDQGHUFRQGXFWLQJDPRELOHGHIHQVH
RIDOLQHDUREVWDFOHLQWKHMXQJOHPXVWSRVLWLRQWKHVWULNLQJIRUFHLQDORFDWLRQZKHUHLWFDQUDSLGO\DFFHVVWKH
HQHP\SRLQWRISHQHWUDWLRQDQGGHIHDWWKHEULGJHKHDG7KHFRPPDQGHUDOVRFRQGXFWVGHFHSWLRQRSHUDWLRQV
WRHQWLFHWKHHQHP\WRFURVVDWDORFDWLRQZLWKLQGHVLUHGUDQJHRIWKHVWULNLQJIRUFH

5(9(56(6/23('()(16(
 7KHFRPPDQGHURUJDQL]HVDUHYHUVHVORSHGHIHQVHLOOXVWUDWHGLQILJXUHRQWKHSRUWLRQRIDWHUUDLQ
IHDWXUHRUVORSHZLWKDWRSRJUDSKLFDOFUHVWWKDWPDVNVWKHPDLQGHIHQVLYHSRVLWLRQVIURPHQHP\REVHUYDWLRQ
DQGGLUHFWILUH$OORUSDUWRIWKHGHIHQGLQJIRUFHPD\HPSOR\WKLVWHFKQLTXH,WLVJHQHUDOO\XVHIXODWORZHU
WDFWLFDOOHYHOVVXFKDVEDWWDOLRQDQGEHORZ
 8VLQJWKHUHYHUVHVORSHGHIHQVHKDVOLPLWHGYDOXHLQWKHMXQJOHHQYLURQPHQW&RQFHDOPHQWLVH[FHOOHQW
LQWKHMXQJOHUHQGHULQJWKHGHQLDORIHQHP\REVHUYDWLRQDIIRUGHGE\WHUUDLQRIOHVVHULPSRUWDQFH7KHQDWXUDO
FRQFHDOPHQWRIIHUHGE\WKHMXQJOHRIWHQUHGXFHVYLVLELOLW\PRUHWKDQWKHWRSRJUDSKLFDOUHOLHI+RZHYHULQ
MXQJOHV ZKHUH FRQFHDOPHQW LV UHGXFHG E\ IRUHVWU\ RU DJULFXOWXUDO SUDFWLFHV RU WKH KHLJKW RI WKH QDWXUDO
YHJHWDWLRQLVOHVVWKDQHTXLSPHQWWKHUHYHUVHVORSHGHIHQVHFDQEHLQFUHGLEO\HIIHFWLYH

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

)LJXUH5HYHUVHVORSHGHIHQVH

%$77/(326,7,216
 ,QJURXQGRSHUDWLRQVDbattle positionLVDGHIHQVLYHORFDWLRQRULHQWHGRQDQHQHP\DYHQXHRIDSSURDFK
IURPZKLFKDXQLWPD\GHIHQG0&53 $EDWWOHSRVLWLRQDLPVWRGHQ\RUGHOD\WKHHQHP\WKHXVHRI
FHUWDLQ WHUUDLQ RU DQ DYHQXH RI DSSURDFK 7KH VL]H RI D EDWWOH SRVLWLRQ FDQ YDU\ ZLWK WKH VL]H RI WKH XQLW
DVVLJQHG)RUJURXQGFRPEDWXQLWVEDWWOHSRVLWLRQVDUHXVXDOO\KDVWLO\RFFXSLHGEXWVKRXOGEHFRQWLQXRXVO\
LPSURYHG6HH0&:3IRUDGLVFXVVLRQRIEDWWOHSRVLWLRQV

67521*32,17
 $ strong pointLVDNH\SRLQWLQDGHIHQVLYHSRVLWLRQXVXDOO\VWURQJO\IRUWLILHGDQGKHDYLO\DUPHGZLWK
DXWRPDWLF ZHDSRQVDURXQG ZKLFKRWKHUSRVLWLRQVDUHJURXSHGIRULWVSURWHFWLRQ0&53 8VXDOO\
KHDYLO\IRUWLILHGDQGDUPHGZLWKDXWRPDWLFZHDSRQVLWLVGHVLJQHGWRGHQ\WKHHQHP\FHUWDLQWHUUDLQDQGWKH
XVHRIDQDYHQXHRIDSSURDFK,WGLIIHUVIURPDEDWWOHSRVLWLRQLQWKDWLWLVGHVLJQHGWREHRFFXSLHGIRUDQ
H[WHQGHGSHULRG8QLWVHVWDEOLVKDVWURQJSRLQWRQFULWLFDOWHUUDLQDQGKROGLWIRUWKHGHIHQVHWRVXFFHHG$

6HSWHPEHU $730&73& 

&KDSWHU

VWURQJSRLQWUHTXLUHVDOODURXQGGHIHQVHDQGVKRXOGKDYHVXIILFLHQWVXSSOLHVDQGDPPXQLWLRQWRFRQWLQXHWR
ILJKWHYHQLIVXUURXQGHGRUFXWRIIIURPUHVXSSO\6WURQJSRLQWVRIWHQUHTXLUHFRQVLGHUDEOHWLPHDQGHQJLQHHU
UHVRXUFHVWRGHYHORS6HH0&:3IRUDGLVFXVVLRQRIVWURQJSRLQW

6(&725
 $ FRPPDQGHU PD\ DVVLJQ VXERUGLQDWH FRPPDQGHUV GHIHQVLYH VHFWRUV WR SURYLGH WKHP PD[LPXP
ODWLWXGHWRDFFRPSOLVKDVVLJQHGWDVNV7KHH[WHQWRIWKHDVVLJQHGVHFWRUDVVLJQHGGHSHQGVRQWKH0(777
EXWDVDJHQHUDOUXOHVKRXOGEHQRODUJHUWKDQFDQEHLQIOXHQFHGE\WKHXQLW6HH0&:3IRUDGLVFXVVLRQ
RI VHFWRU 7KH MXQJOH¶V UHVWULFWHG WHUUDLQ DQG GHQVH YHJHWDWLRQ OLPLW REVHUYDWLRQ DQG ILHOGV RI ILUH 6XFK
OLPLWDWLRQV PD\ UHTXLUH DVVLJQLQJ VPDOOHU VHFWRUV WR VXERUGLQDWH XQLWV ,W PD\ DOVR UHTXLUH FRPPDQGHUV
SODFLQJPXWXDOO\VXSSRUWLQJVHFWRUVFORVHUWRJHWKHU

75$16,7,21
 'HIHQGLQJ FRPPDQGHUV DQWLFLSDWH WKH VXFFHVV RI WKHLU GHIHQVH DQG WUDQVLWLRQV WR WKH RIIHQVH ,I D
GHIHQVH IDLOV GHIHQGLQJ FRPPDQGHUV WUDQVLWLRQ LQWR UHWURJUDGH RSHUDWLRQV 7UDQVLWLRQ IURP RQH W\SH RI
RSHUDWLRQRUWDVNRSHUDWLRQWRDQRWKHUUHTXLUHVPHQWDODVZHOODVSK\VLFDODJLOLW\IURPWKHLQYROYHGIRUPDWLRQV
DQGDQDFFXUDWHXQGHUVWDQGLQJRIWKHVLWXDWLRQ

75$16,7,21722))(16(
 $GHIHQGLQJFRPPDQGHUWUDQVLWLRQVWRWKHRIIHQVHE\DQWLFLSDWLQJZKHQDQGZKHUHDQHQHP\IRUFHZLOO
UHDFK LWV FXOPLQDWLQJ SRLQW RU UHTXLUH DQ RSHUDWLRQDO SDXVH EHIRUH LW FDQ FRQWLQXH $W WKRVH PRPHQWV WKH
FRPEDWSRZHUUDWLRV PRVWIDYRUWKHGHIHQGLQJIRUFH$QHQHP\ IRUFH ZLOOGRHYHU\WKLQJLWFDQWRNHHSD
IULHQGO\ IRUFH IURP NQRZLQJ ZKHQ LW LV RYHUH[WHQGHG ,QGLFDWRUV WKDW DQ HQHP\ IRUFH LV EHFRPLQJ
RYHUH[WHQGHGLQFOXGH²
z (QHP\IRUFHVEHJLQWRWUDQVLWLRQWRWKHGHIHQVH
z (QHP\IRUFHVVXIIHUKHDY\ORVVHV
z (QHP\IRUFHVVWDUWWRGHSOR\EHIRUHHQFRXQWHULQJIULHQGO\IRUFHV
z (QHP\IRUFHVDUHGHIHDWHGLQPRVWHQJDJHPHQWV
z (QHP\IRUFHVDUHFRPPLWWHGSLHFHPHDOLQFRQWLQXHGDWWDFNV
z (QHP\UHVHUYHIRUFHVDUHLGHQWLILHGDPRQJDWWDFNLQJIRUFHV
z ([DPLQDWLRQRIFDSWXUHGRUNLOOHGHQHP\VROGLHUVDQGFDSWXUHGRUGHVWUR\HGHQHP\HTXLSPHQWDQG
VXSSOLHVVKRZVWKDWWKHHQHP\FDQQRWDGHTXDWHO\VXVWDLQLWVHOI
z (QHP\IRUFHVKDYHDQRWLFHDEOHUHGXFWLRQLQWKHLUWHPSRRIRSHUDWLRQV
z /RFDOFRXQWHUDWWDFNVPHHWZLWKXQH[SHFWHGVXFFHVV

 ,QDPRELOHGHIHQVHWUDQVLWLRQLQJWRDQRIIHQVHJHQHUDOO\IROORZVDVWULNLQJIRUFH¶VDWWDFN,QDQDUHD
GHIHQVHFRPPDQGHUVGHVLJQDWHDSRUWLRQRIWKHLUIRUFHWRFRQGXFWWKHFRXQWHUDWWDFNVHOHFWLQJXQLWVEDVHGRQ
WKHFRQFHSWRIRSHUDWLRQV&RPPDQGHUVRIWHQDOORFDWHDYDLODEOHUHVHUYHVWRWKLVFRXQWHUDWWDFNHIIRUW

75$16,7,21727+(5(752*5$'(
 $ UHWURJUDGH XVXDOO\ LQYROYHV D FRPELQDWLRQ RI GHOD\ ZLWKGUDZ DQG UHWLUHPHQW RSHUDWLRQV 7KHVH
RSHUDWLRQVPD\RFFXUVLPXOWDQHRXVO\RUVHTXHQWLDOO\$VLQRWKHURSHUDWLRQVWKHFRPPDQGHU¶VFRQFHSWRI
RSHUDWLRQV DQG LQWHQW GULYH SODQQLQJ IRU D UHWURJUDGH (DFK IRUP RI UHWURJUDGH KDV LWV XQLTXH SODQQLQJ
FRQVLGHUDWLRQV EXW FRQVLGHUDWLRQV FRPPRQ WR DOO UHWURJUDGHV DUH ULVN WKH QHHG IRU V\QFKURQL]DWLRQ DQG
VHFXULW\+RZHYHUVHYHUDONH\FRQVLGHUDWLRQVUHFHLYHVSHFLDOHPSKDVLVGXULQJWKHWUDQVLWLRQIURPWKHGHIHQVH
WRWKHUHWURJUDGH)RUH[DPSOHWKHWUDQVLWLRQWRDUHWURJUDGHPXVWEHDFFRPSDQLHGE\HIIRUWVGHVLJQHGWR²
z 5HGXFHDQHQHP\IRUFH¶VVWUHQJWKDQGFRPEDWSRZHU
z 3URYLGHIULHQGO\UHLQIRUFHPHQWV
z &RQFHQWUDWHIRUFHVHOVHZKHUHIRUWKHDWWDFN
z 3UHSDUHVWURQJHUGHIHQVHVHOVHZKHUHZLWKLQDQ$2
z /XUHRUIRUFHSDUWRUDOORIDQHQHP\IRUFHLQWRDUHDVZKHUHLWFDQEHFRXQWHUDWWDFNHG

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

 7KHQDWXUHRIDUHWURJUDGHLQYROYHVDQLQKHUHQWULVNRIGHJUDGLQJDGHIHQGLQJIRUFH¶VPRUDOH7KHUHIRUH
PDLQWDLQLQJRIIHQVLYHVSLULWLVHVVHQWLDODPRQJVXERUGLQDWHOHDGHUVDQG6ROGLHUV5HDUZDUGPRYHPHQWVPD\
EHVHHQDVDGHIHDWRUDVDQDFWLRQWKDWFRXOGUHVXOWLQLVRODWLRQRIWKHIRUFH&RPPDQGHUVPXVWEHZHOOIRUZDUG
DQGYLVLEOH&RPPDQGHUVHQVXUHWKDWVXERUGLQDWHOHDGHUVDQG6ROGLHUV0DULQHVXQGHUVWDQGWKHSXUSRVHDQG
LQWHQWRIWKHUHWURJUDGHDQGWKHLUUROHLQDFFRPSOLVKLQJWKHPLVVLRQ7KRURXJKSODQQLQJHIIHFWLYHFRQWURO
DQGDJJUHVVLYHOHDGHUVKLSPLQLPL]HULVNGXULQJDUHWURJUDGHDQGHQKDQFHLWVSUREDELOLW\RIVXFFHVV

:$5),*+7,1*)81&7,21&216,'(5$7,216
 &RPPDQGHUV H[HFXWH DQ HIIHFWLYH GHIHQVH E\ V\QFKURQL]LQJ WKH ZDUILJKWLQJ IXQFWLRQV WR OHYHUDJH
PD[LPXP FRPEDW SRZHU DFURVV PXOWLSOH GRPDLQV DW GHFLVLYH SRLQWV +RZHYHU WKH MXQJOH¶V WHUUDLQ DQG
HQYLURQPHQWDIIHFWZDUILJKWLQJIXQFWLRQVGLIIHUHQWO\DQGFRPPDQGHUVPXVWSODQDQGDGMXVWRSHUDWLRQVWR
DFFRXQWIRUWKHVHHIIHFWV7KHIROORZLQJFRQVLGHUDWLRQVRUJDQL]HGE\ZDUILJKWLQJIXQFWLRQDSSO\WRGHIHQVLYH
RSHUDWLRQVLQWKHMXQJOH

,1)250$7,21
 ,QIRUPDWLRQ RSHUDWLRQV LQ WKH GHIHQVH FRQVLVW RI 0,/'(& DQG 236(& PHDVXUHV XVHG WR SURWHFW
IULHQGO\IRUFHV8QLWVFDQXVH0,/'(&WRGHJUDGHRUQHXWUDOL]HHQHP\LQIRUPDWLRQRSHUDWLRQV&RPPDQGHUV
FDQ HPSOR\ 236(& WR GHQ\ WKH HQHP\ NQRZOHGJH DERXW WKH VL]H FDSDELOLWLHV ORFDWLRQ GLVSRVLWLRQ DQG
LQWHQWRIIULHQGO\IRUFHV8QLWVXVHWKH236(&SURFHVVWRSURWHFWWKHFRPPDQGHU¶VFRQFHSWRIRSHUDWLRQVDQG
SUHYHQWWKHHQHP\IURPLGHQWLI\LQJSRWHQWLDOYXOQHUDELOLWLHV

&200$1'$1'&21752/
 $GHIHQVLYHPLVVLRQJHQHUDOO\LPSRVHVIHZUHVWULFWLRQVRQDGHIHQGLQJFRPPDQGHU,WDOORZVIUHHGRP
RIPDQHXYHUZLWKLQDVVLJQHGERXQGDULHVEXWLWUHTXLUHVFRPPDQGHUVWRSUHYHQWHQHP\SHQHWUDWLRQRIWKHLU
UHDUERXQGDU\7KLV PLVVLRQ DOORZVFRPPDQGHUVWRGLVWULEXWH IRUFHVWRVXLWWKH WHUUDLQDQGSODQ($V WKDW
LQWHJUDWHGLUHFWDQGLQGLUHFWILUHV7KHGHIHQVLYHSODQPXVWDGGUHVVWKHWUDQVLWLRQWRWKHRIIHQVHUHWURJUDGH
RUFRQVROLGDWLRQRIJDLQV&RPPDQGHUVPD\UHTXLUHDGGLWLRQDOVLJQDOVXSSRUW²VXFKDVUHWUDQVPLVVLRQWHDPV
MRLQWQHWZRUNQRGHVLJQDODVVHWVVDWHOOLWHFRPPXQLFDWLRQVDQGWDFWLFDOUDGLRFRPPXQLFDWLRQV²WRIDFLOLWDWH
FRPPDQGDQGFRQWURODFURVVGHIHQVLYHIURQWDJHVLQFRPSOH[WHUUDLQZLWKOLPLWHGYLVLELOLW\EHWZHHQGHIHQVLYH
SRVLWLRQV
 %HFDXVHDQHQHP\IRUFHKDVWKHLQLWLDWLYHWKHGHIHQGLQJFRPPDQGHUPD\KDYHWRIUHTXHQWO\VKLIWPDLQ
DQGVXSSRUWLQJHIIRUWVZLWKLQWKHXQLW¶VVKDSLQJRSHUDWLRQVWRFRQWDLQWKHHQHP\¶VDWWDFNXQWLOWKHGHIHQGLQJ
IRUFHFDQVHL]HWKHLQLWLDWLYH5DSLGO\VKLIWLQJWKHSULRULW\IRUVXSSRUWDQGUHLQIRUFHPHQWGXULQJDGHIHQVHLQ
WKHMXQJOHLVFRPSOLFDWHGE\WKHODFNRI/2&VDQGUHVWULFWLYHWHUUDLQ0RYHPHQWVDUHVORZHUDQGWKHVXSSO\
V\VWHPLVOHVVUHVSRQVLYHWKHUHIRUHFRPPDQGHUVPD\FRQVLGHUFDFKLQJRUSUHSRVLWLRQLQJVXSSOLHVDWYDULRXV
ORFDWLRQV DFURVV WKH $2 WR EHWWHU IDFLOLWDWH VKLIWV EHWZHHQ WKH PDLQ DQG VXSSRUWLQJ HIIRUWV &RPPDQGHUV
FDUHIXOO\SRVLWLRQWKHUHVHUYHRUVWULNLQJIRUFHLQDORFDWLRQZKHUHLWFDQUHVSRQGUDSLGO\WRWKHHQHP\¶VDWWDFN
DQGVXSSRUWWKHGHFLVLYHRSHUDWLRQ
 %HFDXVH FRPPDQG SRVWV DQG FRPPXQLFDWLRQV QRGHV WHQG WR EH UHODWLYHO\ VWDWLF LQ WKH GHIHQVH
FRPPDQGHUV SODFH WKHP LQ KDUGHQHG DUHDV RU SURWHFWLYH WHUUDLQ DQG UHGXFH WKHLU HOHFWURQLF DQG YLVXDO
VLJQDWXUHV&RPPDQGSRVWVUHPDLQFDSDEOHRIUDSLGO\UHORFDWLQJLQUHVSRQVHWREDWWOHILHOGGHYHORSPHQWV
 7KHIROORZLQJDGGLWLRQDOIDFWRUVVKRXOGEHFRQVLGHUHGZKHQSODQQLQJIRUWKHMXQJOHGHIHQVH
z 'D\DQGQLJKWLQMXQJOHUHJLRQVDUHHDFKKRXUVORQJ1LJKWVHVSHFLDOO\XQGHUMXQJOHFDQRSLHV
DUHH[WUHPHO\GDUN8QLWVEHJLQGHIHQVLYHSUHSDUDWLRQVDWOHDVWKRXUVEHIRUHQLJKWIDOO
z 7URSLFDOUDLQZLOOIORRGSRVLWLRQVXQOHVVWKH\ KDYHDGHTXDWHGUDLQDJH'XULQJWKHUDLQ\VHDVRQ
XQLWVGLJGHIHQVLYHSRVLWLRQVRQKLJKJURXQGLISRVVLEOH
z %HFDXVHMXQJOHWHUUDLQIDYRUVLQILOWUDWLRQWKHXVHRI19'V,5GHYLFHVREVHUYDWLRQSRVWVOLVWHQLQJ
SRVWVDQGHDUO\ZDUQLQJGHYLFHVLVFULWLFDO

6HSWHPEHU $730&73& 

&KDSWHU

029(0(17$1'0$1(89(50$1(89(5
 'HIHQGLQJFRPPDQGHUVH[SORLWWKHDGYDQWDJHVRIRFFXS\LQJWKHWHUUDLQLQDMXQJOHHQYLURQPHQWZKHUH
DQHQJDJHPHQWZLOORFFXU'HIHQGLQJFRPPDQGHUVVHOHFWWHUUDLQWKDWDOORZVWKHPDVVLQJRIIULHQGO\ILUHV
'HIHQVLYHSRVLWLRQVLQWKHPDLQEDWWOHDUHDPDNHXVHRIH[LVWLQJDQGUHLQIRUFLQJREVWDFOHVWKDWLPSHGHHQHP\
PRYHPHQWIRUFLQJWKHHQHP\WRFRPPLW IRUFHVSLHFHPHDO LQWRIULHQGO\ ($V7KLVH[SRVHVSRUWLRQVRIDQ
HQHP\IRUFHIRUGHVWUXFWLRQZLWKRXWJLYLQJXSWKHDGYDQWDJHVRIILJKWLQJIURPSURWHFWHGSRVLWLRQV([DPSOHV
RINH\WHUUDLQLQFOXGHPDMRUREVWDFOHVQDWXUDODQGPDQPDGHWKDW XQLWVFDQFRYHUE\ILUHVLPSRUWDQWURDG
MXQFWLRQVDQGFKRNHSRLQWVWKDWLPSDFWWURRSPRYHPHQWV
 &RPPDQGHUVSHUIRUPVHFXULW\RSHUDWLRQVLQWKHMXQJOHHQYLURQPHQWWRSURYLGHWKHLUSURWHFWHGIRUFHV
WLPHVSDFHDQGLQWHOOLJHQFHQHFHVVDU\WRUHDFWWRWKHDSSURDFKRIHQHP\IRUFHVZKLOHVLPXOWDQHRXVO\IRUFLQJ
WKHHQHP\WRGHSOR\SUHPDWXUHO\&RPPDQGHUVSHUIRUPVHFXULW\RSHUDWLRQVWRFRQFHDOWKHORFDWLRQRIWKHLU
PDLQEDWWOHSRVLWLRQVSUHYHQWHQHP\REVHUYDWLRQRIIULHQGO\SUHSDUDWLRQVDQGSRVLWLRQVDQGNHHSWKHHQHP\
IRUFHIURPGHOLYHULQJREVHUYHGILUHRQWKHVHSRVLWLRQV*LYHQWKHUHVWULFWLYHWHUUDLQDQGWKHODFNRI/2&VLQ
WKHMXQJOHWKHVHFXULW\DUHDPD\EHVKDOORZHUWKDQLQRWKHUHQYLURQPHQWV7KLVFRQVLGHUDWLRQDFFRXQWVIRU
WKH DGGLWLRQDO WLPH QHFHVVDU\ IRU VHFXULW\ IRUFHV WR H[HFXWH D UHDUZDUG SDVVDJH RI OLQHV DIWHU WKH\ KDYH
VFUHHQHGWKHDWWDFNLQJHQHP\7KHVHFXULW\IRUFHVDUHOLNHO\GLVPRXQWHGDQGZLWKRXWDGHTXDWH/2&VWKHVH
IRUFHVQHHGDGGLWLRQDOWLPHWRZLWKGUDZWRWKHPDLQEDWWOHDUHD
 :KLOHGLVPRXQWHGIRUFHVH[HFXWH WKHSUHSRQGHUDQFHRIGHIHQVLYHRSHUDWLRQVLQWKHMXQJOHDUPRUHG
YHKLFOHV FDQ HQKDQFH GHIHQVLYH ILUHSRZHU ,Q EDWWOH SRVLWLRQV DQG VWURQJ SRLQWV DUPRUHG YHKLFOHV DUH
SRVLWLRQHGWR²
z &DSLWDOL]HRQWKHPD[LPXPHIIHFWLYHUDQJHRIWKHLUZHDSRQV\VWHPV
z %ORFNSRVVLEOHDUPRURUPRWRUL]HGSHQHWUDWLRQV
z 0RYHTXLFNO\WRILOOJDSVLQWKHGHIHQVH
z ,QFRUSRUDWHDQWLDUPRUDQGKHDY\GLUHFWILUHZHDSRQVLQWRWKHGHIHQVLYHSODQ

0RELOLW\
 'XULQJDGHIHQVHPRELOLW\WDVNVLQFOXGHPDLQWDLQLQJURXWHVFRRUGLQDWLQJJDSVLQH[LVWLQJREVWDFOHV
DQG VXSSRUWLQJ FRXQWHUDWWDFNV HQJLQHHU XQLWV W\SLFDOO\ SHUIRUP WKHVH WDVNV &RPPDQGHUV HVWDEOLVK WKH
SULRULW\ RI PRELOLW\ VXSSRUW EDVHG RQ WKH PLVVLRQ YDULDEOHV 7KLV VXSSRUW FRQVLVWV PDLQO\ RI UHGXFLQJ
REVWDFOHV DQG LPSURYLQJ RU FRQVWUXFWLQJ FRPEDW URDGV DQG WUDLOV WR DOORZ WDFWLFDO VXSSRUW YHKLFOHV WR
DFFRPSDQ\FRPEDWYHKLFOHV(QHP\ILUHVDQGIULHQGO\XVHDFFHOHUDWHWKHQRUPDOZHDURQURXWHV'XULQJD
FRXQWHUDWWDFN HQJLQHHU EUHDFKLQJ V\VWHPV RSHQ FORVHG ODQHV RU EUHDFK KDVW\ PLQHILHOGV SODFHG E\ D
UHWURJUDGLQJ HQHP\ &RPPDQGHUV FRRUGLQDWH FDUHIXOO\ WR HQVXUH WKDW XQLWV OHDYH ODQHV RU JDSV LQ WKHLU
REVWDFOHVWKDWDOORZIRUWKHUHSRVLWLRQLQJRIPDLQERG\XQLWVDQGWKHFRPPLWPHQWRIWKHFRXQWHUDWWDFNLQJ
IRUFH&%51UHFRQQDLVVDQFHV\VWHPVDOVRFRQWULEXWHWRDIRUFH¶VPRELOLW\LQDFRQWDPLQDWHGHQYLURQPHQW

&RXQWHUPRELOLW\
 'XULQJDGHIHQVHXQLWVFRQGXFWFRXQWHUPRELOLW\RSHUDWLRQVWRUHGXFHWKHHQHP\¶VPRELOLW\WKURXJK
WKH XVH RI REVWDFOH ]RQHV EHOWV EDUULHUV DQG JURXSV :KHQ SODQQLQJ REVWDFOHV FRPPDQGHUV DQG VWDIIV
FRQVLGHUQRWRQO\FXUUHQWRSHUDWLRQVEXWDOVRIXWXUHRSHUDWLRQVVRWKH\GRQRWKLQGHUFRXQWHUDWWDFNV7URRSV
PXVWFOHDUO\PDUNDQGUHSRUWPLQHILHOGVWRDYRLGXQQHFHVVDU\ORVVHVLIIULHQGO\IRUFHVODWHUPDQHXYHURYHU
WKH DUHD 8QLWV XVH REVWDFOHV WR GLVUXSW HQHP\ PDQHXYHU XSVHW WKH HQHP\¶V WHPSR DQG PD[LPL]H WKH
HIIHFWLYHQHVVRIGLUHFWDQGLQGLUHFWILUHE\IL[LQJWKHHQHP\LQ($V
 &RXQWHUPRELOLW\UHTXLUHPHQWVLQWKHMXQJOHDUHOHVVLQWHQVLYHWKDQLQRWKHUHQYLURQPHQWV,IHIIHFWLYHO\
LQFRUSRUDWHG LQWR WKH GHIHQVH WKH MXQJOH¶V UHVWULFWLYH WHUUDLQ VHUYHV DV D QDWXUDO REVWDFOH WR EORFN IL[ RU
FDQDOL]HHQHP\IRUFHV7KLVQHJDWHVWKHUHTXLUHPHQWIRUH[WHQVLYHHQJLQHHUVXSSRUWWRHPSODFHREVWDFOHV
$GGLWLRQDOO\WKHODFNRI/2&VPDNHVWUDQVSRUWLQJ&ODVV,9PDWHULDOGLIILFXOWDQGRIWHQFRXQWHUSURGXFWLYH
)LQDOO\FRPPDQGHUVZKRHPSODFHPDQPDGHREVWDFOHVLQWKHMXQJOHPXVWHQVXUHWKDWREVWDFOHVGRQRWEHWUD\
WKHORFDWLRQRIIULHQGO\IRUFHV2EVWDFOHHPSODFHPHQWLQWKHMXQJOHFDQXSVHWWKHFRQFHDOPHQWSURYLGHGE\
QDWXUDOIROLDJHDQGLQGLFDWHWKHSUHVHQFHRIIULHQGO\IRUFHV

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

2EVFXUDWLRQLQWKH'HIHQVH
 &RPPDQGHUVXVHREVFXUDQWVLQDMXQJOHGHIHQVHWRGLVUXSWDQHQHP\¶VDVVDXOWRUPRYHPHQWIRUPDWLRQV
SUHYHQWWKHXVHRIWDUJHWDFTXLVLWLRQRSWLFVFRPSOLFDWHYLVXDOQDYLJDWLRQDQGGHQ\DLUDYHQXHVRIDSSURDFK
ODQGLQJ]RQHVDQGGURS]RQHV2EVFXUDQWVFUHDWHJDSVLQHQHP\IRUPDWLRQVPDUNWDUJHWVDQGVFUHHQDQG
REVFXUHIULHQGO\SRVLWLRQVWRGHQ\WKHHQHP\LQIRUPDWLRQDERXWWKHVL]HORFDWLRQDQGFRPSRVLWLRQRIIULHQGO\
GHIHQVLYHSRVLWLRQV8QLWVDOVRXVHREVFXUDQWVWRHQKDQFH0,/'(&RSHUDWLRQVDQGFRQFHDOWKHPRYHPHQWRI
IULHQGO\IRUFHV0RGHUQELVSHFWUDOREVFXUDQWVSURYLGHSURWHFWLRQIURPWKHUPDODVZHOODVYLVXDOVSHFWUXP
YLHZLQJ GHYLFHV &RPPDQGHUV FDUHIXOO\ HPSOR\ REVFXUDQWV RQO\ DIWHU FRQVLGHULQJ HQHP\ V\VWHPV DQG
IULHQGO\FDSDELOLWLHV,PSURSHUXVHFDQFUHDWHDQDGYDQWDJHIRUDQHQHP\E\EHWUD\LQJWKHORFDWLRQRIIULHQGO\
IRUFHVDQGOLPLWLQJIULHQGO\REVHUYDWLRQDQGILHOGVRIILUH7KHHIIHFWLYHQHVVRIREVFXUDQWVGHSHQGVRQZHDWKHU
FRQGLWLRQVDQGWKHUDWHDQGTXDQWLW\RIREVFXUDQWVHPSOR\HG
 $QDWWDFNLQJHQHP\IRUFHFDQEHH[SHFWHGWRFUHDWHRUWDNHDGYDQWDJHRIOLPLWHGYLVLELOLW\FRQGLWLRQV
DQG REVFXUDWLRQ 1RUPDOO\ D GHIHQGLQJ FRPPDQGHU FDQ H[SHFW DQ DWWDFNHU WDNLQJ DGYDQWDJH RI WKHVH
FRQGLWLRQVWR²
z &RQGXFWUHFRQQDLVVDQFHWRORFDWHDGHIHQGHU¶VVWURQJSRLQWVREVWDFOHVDQGSRVLWLRQVXQGHUWKH
FRYHURIGDUNQHVVZHOOLQDGYDQFHRIWKHSODQQHGDWWDFNVXFKDVWKHQLJKWSULRU
z $WWDFNGXULQJSHULRGVRIOLPLWHGYLVLELOLW\VLPLODUWRWKRVHRFFXUULQJGXULQJWKHUHFRQQDLVVDQFH
z %\SDVVGHIHQVLYHREVWDFOHV
z ,QILOWUDWHWKURXJKJDSVLQDGHIHQGHU¶VFRYHUDJHFDXVHGE\UHGXFHGREVHUYDWLRQDQGILHOGVRIILUH

,17(//,*(1&(
 :KHQ SODQQLQJ GHIHQVLYH RSHUDWLRQV FRPPDQGHUV XVH LQWHOOLJHQFH SURGXFWV WR LGHQWLI\ SUREDEOH
HQHP\REMHFWLYHVDQGDSSURDFKHVLQWKHMXQJOH)URPWKRVHSUREDEOHREMHFWLYHVDQGDSSURDFKHVLQWHOOLJHQFH
VWDIIFDQGHYHORSQDPHGDUHDVRILQWHUHVWDQGWDUJHWDUHDVRILQWHUHVW,QDGHIHQVH,3%DWWHPSWVWRGHWHUPLQH
WKHHQHP\¶VVWUHQJWKGLVSRVLWLRQREMHFWLYHV&2$VDQGWKHORFDWLRQRIIROORZRQIRUFHV,3%SURGXFWVDOVR
LGHQWLI\ F\EHUVSDFH DFWLYLWLHV FURVVGRPDLQ FDSDELOLWLHV SDWWHUQV RI HQHP\ RSHUDWLRQV DQG WKH HQHP\¶V
YXOQHUDELOLW\ WR FRXQWHUDWWDFN LQWHUGLFWLRQ (: DLU DWWDFNV DQG FDQDOL]DWLRQ E\ REVWDFOHV &RPPDQGHUV
VWXG\DQHQHP\IRUFH¶VFDSDELOLW\WRFRQGXFWDLUDWWDFNVDJDLQVWIULHQGO\IRUFHVLQVHUWIRUFHVEHKLQGIULHQGO\
XQLWVHPSOR\&%51ZHDSRQVRUZHDSRQVRIPDVVGHVWUXFWLRQDQGFRQGXFWXQFRQYHQWLRQDOZDUIDUH7KH
LQWHOOLJHQFHVWDIIDOVRHYDOXDWHVKRZVRRQHQHP\IROORZRQIRUFHVFDQEHFRPPLWWHG'HIHQGLQJFRPPDQGHUV
FDQWKHQGHFLGHZKHUHWRDUUDQJHWKHLUIRUFHVWRGHIHQGDQGVKDSHWKHEDWWOHILHOG

),5(6
 7KHWDUJHWLQJSURFHVVHQVXUHVWKHFROOHFWLYHDQGFRRUGLQDWHGXVHRILQGLUHFWDQGMRLQWILUHVWRJDLQ
DQG PDLQWDLQ ILUH VXSHULRULW\ WKURXJKRXW GHIHQVLYH RSHUDWLRQV ,Q WKH GHIHQVH FRPPDQGHUV XVH ILUHV WR
QHXWUDOL]HVXSSUHVVRUGHVWUR\HQHP\IRUFHV&RPPDQGHUVDOVRHPSOR\ILUHVWRGHOD\RUGLVUXSWDQHQHP\¶V
DELOLW\WRH[HFXWHDJLYHQ&2$DQGWRHQKDQFHWKHHIIHFWVRIPDVVHGGLUHFWILUHV
 &RPPDQGHUVHPSOR\ILUHVWRVXSSRUWWKHLUVHFXULW\IRUFHVGXULQJMXQJOHRSHUDWLRQVWRGHVWUR\HQHP\
UHFRQQDLVVDQFH HOHPHQWV DQG DJDLQVW RWKHU KLJKSD\RII WDUJHWV &RPPDQGHUV VXSSRUW VHFXULW\ IRUFHV E\
SODQQLQJ WKH GHOLYHU\ RI ILUHV DW DSSURSULDWH WLPHV DQG SODFHV WR VORZ DQG FDQDOL]H DQ HQHP\ IRUFH DV LW
DSSURDFKHVDQGPRYHVWKURXJKWKHIULHQGO\VHFXULW\DUHD7KLVVXSSRUWDOORZVWKHLUVHFXULW\IRUFHVWRHQJDJH
HQHP\IRUFHVRQPRUHIDYRUDEOHWHUPV)LQDOO\FRPPDQGHUVXVHILUHVWRVXSSRUWWKHZLWKGUDZDORIVHFXULW\
IRUFHVRQFRPSOHWLRQRIWKHLUVKDSLQJHIIRUWVDQGZKHQDGHIHQGLQJXQLWLVSUHSDUHGWRFRQGXFW PDLQEDWWOH
DUHD RSHUDWLRQV 2UJDQLF DQG MRLQW ILUHV FRQWLQXH WR HQJDJH HQHP\ IROORZRQ IRUFHV EHIRUH WKH\ FDQ EH
FRPPLWWHGWRWKH PDLQEDWWOH DUHD)LUHVXSSRUWDVVHWVHQJDJHHQHP\FRPPDQGDQGFRQWUROIDFLOLWLHVDQG
ORJLVWLFVVLWHVLQGHSWKWRLVRODWHDQDWWDFNLQJHQHP\

)LHOG$UWLOOHU\
 &RPPDQGHUVUHFRJQL]H WKDWGXULQJDQDUHDGHIHQVHRUDUHWURJUDGHUHSRVLWLRQLQJDVVHWV EHWZHHQ
SRVLWLRQDUHDVIRUDUWLOOHU\3$$VWDNHVHIIRUWDQGLQWHQVHUHVRXUFHVDIWHUFDUHIXOSODQQLQJWRHQVXUHVXFFHVV
7KHMXQJOH¶VUHVWULFWLYHWHUUDLQDQGOLPLWHG/2&VPDNHJURXQGPRYHPHQWVORZDQGDUGXRXVIRUDUWLOOHU\XQLWV

6HSWHPEHU $730&73& 

&KDSWHU

,I DYDLODEOH FRPPDQGHUV XVH DYLDWLRQ DVVHWV WR PRYH DUWLOOHU\ E\ VOLQJ ORDG EHWZHHQ 3$$V 0RYHPHQW
EHWZHHQ3$$VLQDMXQJOHUHTXLUHHDUOLHULQLWLDWLRQDQGPRUHWLPHWKDQGXULQJRSHUDWLRQVLQRSHQWHUUDLQ
 :KHQSODQQLQJDQGVLWLQJ3$$VFRPPDQGHUVUHVLVWWKHXUJHWRFRORFDWH3$$VZLWKKHDGTXDUWHUV
RU DW VXVWDLQPHQW EDVHV 7KH FKDOOHQJHV DVVRFLDWHG ZLWK FOHDULQJ IROLDJH WR HVWDEOLVK 3$$V FDQ OHDG
LQH[SHULHQFHG XQLWV WR FRQFHQWUDWH DVVHWV LQ D VLQJOH ORFDWLRQ +RZHYHU WKH VLJQLILFDQW HOHFWURPDJQHWLF
VLJQDWXUHSURGXFHGE\DUWLOOHU\(:DQGWKHLUVXSSRUWLQJDVVHWVPDNHWKHPYXOQHUDEOHWRHQHP\GHWHFWLRQ
DQGFRXQWHUILUH7KLVSODFHVWKHFRORFDWHGXQLWVDQGDVVHWVDWJUHDWHUULVNDQGSRWHQWLDOO\PDNHVWKHVLWHD
KLJKYDOXH WDUJHW IRU WKH HQHP\ 7R SUHYHQW WKLV FRPPDQGHUV LGHQWLI\ DQG FOHDU 3$$V DV SDUW RI WKHLU
GHIHQVLYHSUHSDUDWLRQVDQGHQVXUHWRGLVSHUVHIRUFHVLQDPDQQHUWKDWPLWLJDWHVULVN
 0XWXDOVXSSRUWLQMXQJOHRSHUDWLRQVLVERWKDIDFWRURIWLPHVXSSRUWLQJGLVWDQFHDQGZHDSRQUDQJH
VXSSRUWLQJUDQJHGXHWRWKHODUJHDUHDVXQLWVFRYHUDQGWKHLPSDFWVRIWHUUDLQUHOLHIDQGYHJHWDWLRQKHLJKW
DQGGHQVLW\&RPPDQGHUVVRPHWLPHVKDYHWRDFFHSWJDSVLQLQLWLDOSRVLWLRQVEHWZHHQDQGZLWKLQWDVNIRUFHV
,GHDOO\DOHDGHUDUUDQJHXQLWVE\VLWLQJGHIHQGLQJIRUFHVLQVXFKDPDQQHUWKDWIRUFHVLQDWOHDVWWZRSRVLWLRQV
FDQHQJDJH DQHQHP\ PDQHXYHULQJRQDQ\RQHRIWKHP7KLV JUHDWO\UHGXFHVDQ\SRVVLELOLW\RIGHIHDWLQ
GHWDLO:KHQJDSVH[LVW WURRSVYLJLODQWO\NHHSWKHP XQGHUVXUYHLOODQFH7KHGHIHQVLYH SODQ PXVWLQFOXGH
SURYLVLRQV IRUPDQHXYHULQJWRILUHRQDQ\SDUWRIDJDSEHIRUHWKH HQHP\FDQ PRYH WKURXJKLW $ KLJKHU
KHDGTXDUWHUVGHILQHVWKHXQLW¶V $2DQGVRWKHXQLWFDQFOHDUO\LGHQWLI\LWRQWKHJURXQG
 6WDIIVSODQGHIHQVLYHWDUJHWVIRUDUWLOOHU\DQGPRUWDUVRQVWUHDPDQGWUDLOMXQFWLRQVDVZHOODVDQ\
RWKHUOLNHO\HQHP\DYHQXHVRIDSSURDFK8QLWVXVHDUWLOOHU\DQGPRUWDUILUHWRFRYHUWKHPDQ\DUHDVRIGHDG
VSDFHIRXQGLQMXQJOHWHUUDLQ:KHQSUHSDULQJWKHGHIHQVHVWDIIVFRQILUPSUHSODQQHGWDUJHWVXVLQJDUWLOOHU\
PDUNLQJPLVVLRQVLQWHJUDWHGLQWRUHJLVWUDWLRQPLVVLRQV6LJQDOVIRUHPSOR\LQJ&$6DWWDFNDYLDWLRQFDOOIRU
ILUHERWKGD\DQGQLJKWPHGLFDOHYDFXDWLRQDQGDHULDOUHVXSSO\PXVWEHSODQQHG

$LUDQG0LVVLOH'HIHQVH
 *URXQGFRPPDQGHUVPLWLJDWHWKHULVNRIDLUDQGPLVVLOHDWWDFNZLWKYDULRXVDFWLYLWLHVLQWKHMXQJOH
HQYLURQPHQW 7KHVH DFWLYLWLHV LQFOXGH FDPRXIODJH FRQFHDOPHQW GHFHSWLRQ GLVSHUVLRQ UHGXQGDQF\
GHWHFWLRQDQGZDUQLQJDQGSURWHFWLYHFRQVWUXFWLRQ7KHVHDFWLYLWLHVLPSURYHXQLWVXUYLYDELOLW\E\UHGXFLQJ
WKH OLNHOLKRRG RI EHLQJ GHWHFWHG DQG WDUJHWHG IURP WKH DLU DQG E\ PLWLJDWLQJ WKH SRWHQWLDO HIIHFWV RI DLU
VXUYHLOODQFHDQGDWWDFN0LWLJDWLRQDFWLYLWLHVLQFOXGHGHWHFWLQJDLUDQGPLVVLOHODXQFKHVSUHGLFWLQJLPSDFW
SRLQWVFRQGXFWLQJUDSLGWKUHDWLGHQWLILFDWLRQDQGGLVVHPLQDWLQJHDUO\ZDUQLQJ

6867$,10(17/2*,67,&6
 &RPPDQGHUV DGGUHVV VHYHUDO XQLTXH VXVWDLQPHQW FRQVLGHUDWLRQV LQ WKH MXQJOH GHIHQVLYH SODQ
3ULRULWLHV IRU MXQJOH UHSOHQLVKPHQW DUH QRUPDOO\ DPPXQLWLRQ DQG PDWHULHO WR FRQVWUXFW REVWDFOHV DQG
GHIHQVLYHSRVLWLRQV8VXDOO\XQLWVUHGXFHWKHLUQHHGIRUEXONIXHO6RPHXQLWVKDYHDQLQFUHDVHGGHPDQGIRU
GHFRQWDPLQDQWVDQG&%51FROOHFWLYHDQGSHUVRQDOSURWHFWLYHHTXLSPHQW7KHVXSSO\RIREVWDFOHPDWHULDOV
LQDGHIHQVHFDQFUHDWHSUREOHPVWKDWUHTXLUHGHWDLOHGFRRUGLQDWLRQDQGORQJOHDGWLPHV&RPPDQGHUVFRQVLGHU
WKHWUDQVSRUWDWLRQDQGSHUVRQQHOUHTXLUHGWRREWDLQPRYHDQGHPSODFHEDUULHUPDWHULDODQGREVWDFOHV
 'XH WR WKH FKDOOHQJHV DVVRFLDWHG ZLWK PRYLQJ VXSSOLHV LQ UHVWULFWLYH MXQJOH WHUUDLQ FRPPDQGHUV
FRQVLGHUVWRFNSLOLQJRUFDFKLQJDPPXQLWLRQDQGOLPLWHGDPRXQWVRISHWUROHXPSURGXFWVWKURXJKRXWWKHLU$2
ZKHQ FRQGXFWLQJ D GHIHQVH 7KHVH 773 FDQ EH HVSHFLDOO\ HIIHFWLYH GXULQJ D UHWURJUDGH ZKHQ XQLWV ZLOO
GLVSODFH WR SODQQHG SRVLWLRQV XQGHU IULHQGO\ FRQWURO +RZHYHU FRPPDQGHUV PDNH SODQV WR GHVWUR\ WKHVH
VWRFNVLIQHFHVVDU\DVSDUWRIGHQLDORSHUDWLRQV&RPPDQGHUVDOVRFRQVLGHUWKDWWKHDEVHQFHRILQIUDVWUXFWXUH
DQG/2&VLQPDQ\MXQJOHVFDQPDNHLWGLIILFXOWWRILQGVXLWDEOHORFDWLRQVWRVWRFNSLOHPXQLWLRQVDQGVXSSOLHV
LQDPDQQHUWKDWSURWHFWVWKHPIURPHQYLURQPHQWDOGHJUDGDWLRQ
 &RPPDQGHUV GLUHFW VXVWDLQPHQWORJLVWLFV RSHUDWRUV WR GHOLYHU FRPEDWFRQILJXUHG ORDGV WR WKHLU
PDQHXYHUXQLWVUHJXODUO\&RPEDWFRQILJXUHGORDGVDUHW\SLFDOO\SDFNDJHVRISRWDEOHDQGQRQSRWDEOHZDWHU
EDUULHUPDWHULDOVDPPXQLWLRQPHGLFDOVXSSOLHVDQGUHSDLUSDUWVWDLORUHGWRDVSHFLILFVL]HGXQLW&RQILJXUHG
ORDGV HOLPLQDWH WKH QHHG WR UHTXHVW VXSSOLHV DQG UHGXFHV WKH FKDQFH WKDW D ODSVH LQ FRPPXQLFDWLRQV ZLOO
LQWHUUXSWWKHVXSSO\IORZDQGMHRSDUGL]HWKHLQWHJULW\RIDGHIHQVH&RPPDQGHUVXVHLQIRUPDWLRQV\VWHPVWR
DFFXUDWHO\WDLORUWKHVHFRPEDWFRQILJXUHGSXVKSDFNDJHVWRWKHGHPDQGVRIVXSSRUWHGPDQHXYHUXQLWV

 $730&73& 6HSWHPEHU

 -XQJOH'HIHQVLYH2SHUDWLRQV

3527(&7,21
 ,QDMXQJOHGHIHQVHFRPPDQGHUVSURWHFWIRUFHVDQGFULWLFDODVVHWVE\V\QFKURQL]LQJLQWHJUDWLQJDQG
RUJDQL]LQJSURWHFWLRQFDSDELOLWLHVDQGUHVRXUFHV&RPPDQGHUVLQFRUSRUDWHSURWHFWLRQDVWKH\XQGHUVWDQGDQG
YLVXDOL]H WKUHDWV DQG KD]DUGV LQ DQ RSHUDWLRQDO HQYLURQPHQW DQG WKH SURWHFWLRQ FDSDELOLWLHV DYDLODEOH
&RPPDQGHUVWKHQDSSO\WKHHOHPHQWVRIFRPEDWSRZHUWRSUHYHQWRUPLWLJDWHWKHVHWKUHDWVRUKD]DUGVIURP
QHJDWLYHO\LPSDFWLQJIULHQGO\RSHUDWLRQV&RPPDQGHUVXVHGHFLVLRQVXSSRUWWRROVDQGDQDO\VLVWRDVVHVVD
XQLW¶VFULWLFDODVVHWVDQGNH\YXOQHUDELOLWLHV
 &RPPDQGHUVWDNHPHDVXUHVWRSURWHFWDJDLQVWDQGGHIHDWHQHP\FRQYHQWLRQDODQGXQFRQYHQWLRQDO
DWWDFNVWKURXJKRXWWKHGHSWKRIWKHLU$27KLVLVHVSHFLDOO\LPSRUWDQWLQWKHUHDUDUHDZKHUHXQVXVSHFWLQJ
XQLWVPD\EHPRUHYXOQHUDEOHWRDWWDFNDQGWKHGHQVLW\RIKLJKYDOXHWDUJHWVLVOLNHO\JUHDWHU7KHUHDUDUHD¶V
SXUSRVH LV WR JHQHUDWH DQG PDLQWDLQ FRPEDW SRZHU IRU WKH FRPPDQGHU LQ WKH FORVH DQG GHHS ILJKWV 7KH
VXFFHVV RI D GHIHQVLYH RSHUDWLRQ PD\ UHVW RQ FRPEDW SRZHU SURYLGHG E\ WKH UHDU DUHD WR FRQGXFW D
FRXQWHUDWWDFN$VVXFKFRPPDQGHUVWDNHVWHSVWRSURWHFWDJDLQVWFRQYHQWLRQDODQGXQFRQYHQWLRQDOWKUHDWVLQ
WKH UHDUDUHD&RPPDQGHUVGHVLJQDWH D WDFWLFDOFRPEDWIRUFHWRGHIHDW/HYHO,,DQG/HYHO,,,WKUHDWVDQG
FRQGXFWVXUYLYDELOLW\RSHUDWLRQVWRHQKDQFHWKHUHDUDUHD¶VDELOLW\WRZLWKVWDQGDLUDQGPLVVLOHDWWDFNV
 %HFDXVH RI WKH ULVN RI LQILOWUDWLRQ FRPPDQGHUV HPSOR\ VHFXULW\ IRUFHV DQG SK\VLFDO VHFXULW\
PHDVXUHV WR SUHYHQW DQG GHIHDW XQFRQYHQWLRQDO WKUHDWV LQ WKH UHDU DUHD *XHUULOODV VDERWHXUV RU HQHP\
DLUERUQH RU DLU DVVDXOW IRUFHV RIWHQ WDUJHW VXVWDLQPHQW EDVHV FRPPDQG DQG FRQWURO VLWHV RU RWKHU FULWLFDO
DVVHWVLQWKHUHDUDUHD7KHVHDWWDFNVRIWHQSUHFHGHRUDUHFRQGXFWHGLQFRQMXQFWLRQZLWKODUJHVFDOHRIIHQVLYH
RSHUDWLRQV LQ WKH GHHS RU FORVH DUHD 3K\VLFDO VHFXULW\ PHDVXUHV FDQ GHWHU DQG GLVUXSW EXW QRW GHIHDW
XQFRQYHQWLRQDOWKUHDWV3K\VLFDOVHFXULW\PHDVXUHVLQFOXGHDFFHVVFRQWUROSURFHGXUHVSK\VLFDOEDUULHUVDQG
WKHXVHRIOLJKWLQJRURWKHUPHDVXUHVWKDWPDNHLWGLIILFXOWIRUXQFRQYHQWLRQDOIRUFHVWRDFFHVVFULWLFDOVLWHV
7REHVWSURWHFWFULWLFDOVLWHVDQGDVVHWVFRPPDQGHUVHPSOR\ERWKSK\VLFDOVHFXULW\PHDVXUHVDQGVHFXULW\
IRUFHV&RPPDQGHUVXVHPLOLWDU\SROLFHDQGRWKHUVHFXULW\IRUFHVLQDGGLWLRQWRWKHWDFWLFDOFRPEDWIRUFHWR
FRPSOHPHQWSK\VLFDOVHFXULW\PHDVXUHVDQGGHIHDWXQFRQYHQWLRQDODWWDFNVLQWKHUHDUDUHD

6XUYLYDELOLW\2SHUDWLRQV
 6LQFHDQDWWDFNLQJHQHP\IRUFHXVXDOO\KDVWKHLQLWLDWLYHLQWHUPVRIZKHUHDQGZKHQLWZLOODWWDFN
DGHIHQGLQJFRPPDQGHUPXVWWDNHDZLGHUDQJHRIDFWLRQVWRUHGXFHWKHULVNRIORVVHV7RDYRLGGHWHFWLRQ
DQGGHVWUXFWLRQE\WKHHQHP\XQLWVPRYHIUHTXHQWO\DQGTXLFNO\HVWDEOLVKVXUYLYDELOLW\SRVLWLRQV7RSURYLGH
IOH[LELOLW\XQLWV PD\QHHGSULPDU\DOWHUQDWHDQGVXSSOHPHQWDU\SRVLWLRQV7KLVSDUWLFXODUO\ DSSOLHV ZLWK
XQLWVGHIHQGLQJNH\RUGHFLVLYHWHUUDLQ8QLWVHQKDQFHWKHLUVXUYLYDELOLW\E\XVLQJFRQFHDOPHQW0,/'(&
GHFR\RUGXPP\SRVLWLRQVGLVSHUVLRQDQGILHOGIRUWLILFDWLRQV
 7KHHIIHFWLYHGHIHQGHUH[SORLWVHYHU\DGYDQWDJHWKHMXQJOHHQYLURQPHQWSURYLGHV SDUWLFXODUO\WKH
FRYHU DQG FRQFHDOPHQW SURYLGHG E\ WKH IROLDJH DQG UHVWULFWLYH WHUUDLQ $ IRUFH WKDW UHPDLQV FRQFHDOHG
HQKDQFHVLWVVXUYLYDELOLW\DQGFDQGLVUXSWDQHQHP\¶VDWWDFNE\XVLQJVXUSULVHILUHIURPXQGHWHFWHGORFDWLRQV
7KRXJKQRWDVFRPPRQDVLQRWKHU W\SHVRIWHUUDLQ XQLWVLQFRUSRUDWH IHDWXUHVWKDWOHQGWKHPVHOYHVWRWKH
GHIHQVH²VXFKDVULYHUVJRUJHVDQGULGJHV²DQGHQKDQFHVXUYLYDELOLW\7KHGHIHQGHULQFRUSRUDWHVGHIHQVLYH
FKDUDFWHULVWLFVRIWKHMXQJOHWHUUDLQDQGHQYLURQPHQW
 /HDGHUVHQVXUHWKDWWURRSVLQWKHGHIHQVHGRQRWEHFRPHFRPSODFHQWDQGVWD\DGHTXDWHO\SUHSDUHG
IRUDQDWWDFNZKHQHYHULWPD\RFFXU 6WDIIVHVWDEOLVKDOHUWV\VWHPVWRHQVXUHFRQVWDQWVHFXULW\RSHUDWLRQV
$OWKRXJKWKHSRRUREVHUYDWLRQLQMXQJOHVIDYRUVDQDWWDFNDWDQ\WLPHWKHHDUO\KRXUVRIWKHPRUQLQJDIIRUG
WKHDWWDFNHUWKHJUHDWHVWFKDQFHRIVXUSULVHXQOHVVDFWLYHVHFXULW\DQGUHFRQQDLVVDQFHPHDVXUHV H[LVW6XFK
PHDVXUHV LQFOXGH DFWLYH SDWUROOLQJ WKH XVH RI HDUO\ ZDUQLQJ V\VWHPV DQG PDQQHG REVHUYDWLRQ SRVWV
RYHUZDWFKLQJSRWHQWLDOHQHP\DYHQXHVRIDSSURDFK

&%51'HIHQVH
 %HFDXVHGHIHQGLQJXQLWVRIWHQUHPDLQLQIL[HGSRVLWLRQVWKH\LQFUHDVHWKHLUYXOQHUDELOLW\WR&%51
WKUHDWVDQGKD]DUGV&RPPDQGHUVVSHFLI\WKHGHJUHHRIDFFHSWDEOHULVNDQGHVWDEOLVKSULRULWLHVIRU&%51
DVVHWV 3DWUROV LGHQWLI\ ORFDO VRXUFHV RI ZDWHU DQG VWDIIV GHYHORS SODQV WR XVH WKHVH UHVRXUFHV WR FRQGXFW
GHFRQWDPLQDWLRQRSHUDWLRQVLIQHFHVVDU\

6HSWHPEHU $730&73& 

&KDSWHU

6HFXULW\
 6LQFHHQHP\WDFWLFVMXQJOHWHUUDLQDQGEDGZHDWKHUIDYRUDWWDFNVFRQGXFWHGZLWKVWHDOWKVHFXULW\
VWDQGVDVWKHOHDGHU¶VILUVWFRQFHUQ2EVHUYDWLRQSRVWVOLVWHQLQJSRVWVHDUO\ZDUQLQJGHYLFHVDPEXVKHVDQG
SDWUROVDUHDOOPHDVXUHVWKDWZLOOSUHYHQWDXQLWIURPEHLQJVXUSULVHG/HDGHUVSODQSDWUROVDFFRUGLQJWRDQ
LUUHJXODUVFKHGXOH0DULQHVXVHDV\VWHPRIUHFRJQLWLRQVLJQDOVWRSUHYHQWWKHHQJDJHPHQWRIIULHQGO\XQLWV
$OOXQLWVSURYLGHWKHLURZQORFDOVHFXULW\7HUUDLQFRPPXQLFDWLRQVWDUJHWDFTXLVLWLRQFDSDELOLWLHVDQGWKH
HQHP\WKUHDWGHWHUPLQHWKHGHSWKRIORFDOVHFXULW\6HH0&73$>0&:3@IRUDGLVFXVVLRQRI
VHFXULW\

3DVVLYH6HFXULW\0HDVXUHV
 $OOXQLWVHPSOR\SDVVLYHVHFXULW\PHDVXUHVWRUHGXFHH[SRVXUHWRWKHHQHP\7KHVHPHDVXUHVLQFOXGH
REVHUYDWLRQHOHFWURQLFH[SRVXUHDQGILUHV8QLWVVWULFWO\HQIRUFHFRPPXQLFDWLRQVSURFHGXUHVFDPRXIODJH
PRYHPHQW FRQWURO DQG RWKHU LQGLYLGXDO FRQWLQXLQJ DFWLRQV 6HH 0&73 $ >0&:3 @ IRU D
GLVFXVVLRQRISDVVLYHVHFXULW\PHDVXUHV
 7RFRXQWHUHQHP\UHFRQQDLVVDQFHHIIRUWVXQLWVVKRXOGVKLIWWKHSRVLWLRQVRIPDFKLQHJXQVDIWHUGDUN
$IWHUDIHZGD\VFRPPDQGHUVFKDQJHWKHHQWLUHXQLW¶VSRVLWLRQ,IDXQLWUHPDLQVLQSRVLWLRQIRUDORQJHU
SHULRGWKHHQHP\FDQPRUHOLNHO\UHFRQQRLWHULWDQGDWWDFN

$FWLYH6HFXULW\0HDVXUHV
 $FWLYHVHFXULW\PHDVXUHVLQFOXGHFRPEDWSDWUROOLQJVHQVRUVWDUJHWDFTXLVLWLRQUDGDUVVXUYHLOODQFH
DQGHPSOR\PHQWRIIDOVHYLVXDODQGHOHFWURQLFVLJQDWXUHV,QDGGLWLRQFDSDELOLW\VHWVRIFHUWDLQXQLWVHQKDQFH
WKH VHFXULW\SRVWXUHRIWKHRUJDQL]DWLRQ)RUH[DPSOHHQJLQHHUVFRQWULEXWHWRVXUYLYDELOLW\ PRELOLW\DQG
FRXQWHUPRELOLW\²DOORIZKLFKFRQWULEXWHWRVHFXULW\6HH0&73$>0&:3@IRUDGLVFXVVLRQ
DFWLYHVHFXULW\PHDVXUHV

&RQGXFW3RSXODWLRQDQG5HVRXUFHV&RQWURO
 &RPPDQGHUVSODQIRUGLVORFDWHGFLYLOLDQVDQGWKHHIIHFWWKH\KDYHRQIULHQGO\GHIHQVLYHRSHUDWLRQV
&LYLODIIDLUVDQGPLOLWDU\SROLFHDVVLVWFRPPDQGHUVLQSODQQLQJ35&PHDVXUHV$GHIHQGLQJXQLWXVHV+1
DQG LQWHUQDWLRQDO RUJDQL]DWLRQV DV PXFK DV SRVVLEOH WR PLQLPL]H WKH LPSDFW RI GLVDVWHU RU FRQIOLFW RQ
GLVORFDWHGFLYLOLDQV7KHOHVVHUWKHLPSDFWRQWKHFLYLOLDQVWKHIHZHUUHVRXUFHVWKH\ZLOOQHHG8QLWVWKHQ
DYRLGGLYHUWLQJWKHLUUHVRXUFHVWRGLVORFDWHGFLYLOLDQV$OWKRXJKWKHMXQJOHXVXDOO\KDVDORZHUSRSXODWLRQ
GHQVLW\ XQLWVVWLOOQHHGWRDFFRXQWIRU LQGLJHQRXVJURXSVLQHYHQWKH PRVWUHPRWHDUHDVGXULQJGHIHQVLYH
RSHUDWLRQV

 $730&73& 6HSWHPEHU

 &KDSWHU
-XQJOH6WDELOLW\2SHUDWLRQV

7KLVFKDSWHURXWOLQHVWKHSXUSRVHDQGFKDUDFWHULVWLFVRIVWDELOLW\RSHUDWLRQVFRQGXFWHG
LQ WKH MXQJOH ,W GHVFULEHV WKH SODQQLQJ UHTXLUHPHQWV DQG DGMXVWPHQWV QHFHVVDU\ WR
VXFFHVVIXOO\ HVWDEOLVK FLYLO VHFXULW\ VXSSRUW FLYLO FRQWURO UHVWRUH HVVHQWLDO VHUYLFHV
VXSSRUWJRYHUQDQFHVXSSRUWHFRQRPLFDQGLQIUDVWUXFWXUHGHYHORSPHQWDQGFRQGXFW
VHFXULW\FRRSHUDWLRQLQDMXQJOH

67$%,/,7<23(5$7,216
 $ stability operationLVDQRSHUDWLRQFRQGXFWHGRXWVLGHWKH8QLWHG6WDWHVLQFRRUGLQDWLRQZLWKRWKHU
LQVWUXPHQWV RI QDWLRQDO SRZHU WR HVWDEOLVK RU PDLQWDLQ D VHFXUH HQYLURQPHQW DQG SURYLGH HVVHQWLDO
JRYHUQPHQWDO VHUYLFHV HPHUJHQF\ LQIUDVWUXFWXUH UHFRQVWUXFWLRQ DQG KXPDQLWDULDQ UHOLHI $'3  $
VWDELOLW\RSHUDWLRQRFFXUVDVSDUWRIGHFLVLYHDFWLRQLQDMRLQWRSHUDWLRQRUDVDQDFWLYLW\RIWHQLQSHDFHWLPH
6WDELOLW\RSHUDWLRQVWDVNVDUHWKRVHWDVNVH[HFXWHGE\D-)&WRDFFRPSOLVKVWDELOLW\RSHUDWLRQVVXFFHVVIXOO\
7KHVHWDVNVPD\EHWKHIRFXVRIWKHRSHUDWLRQ¶VPLVVLRQEHSHUIRUPHGDVWDVNVVSHFLILHGRULPSOLHGLQDQ
RSHUDWLRQIRFXVHGRQFRPEDWEHSHUIRUPHGDVDFWLYLWLHVRIWHQLQSHDFHWLPHRUEHSDUWRIODUJHURSHUDWLRQV
WRFRQVROLGDWHJDLQV6HH$'3 DQG0&:3IRUPRUHLQIRUPDWLRQRQVWDELOLW\RSHUDWLRQV
 $OWKRXJKVWDELOLW\RSHUDWLRQVWDVNVSHUIRUPHGLQWKHMXQJOHDUHQRGLIIHUHQWWKDQVWDELOLW\RSHUDWLRQV
WDVNVSHUIRUPHGLQRWKHUHQYLURQPHQWVWKH\GLIIHUVLJQLILFDQWO\LQVFDOHDQGVFRSH:LWKVSDUVHSRSXODWLRQV
VWUHWFKLQJDFURVVYDVWDUHDVRIUHVWULFWLYHWHUUDLQWKHPRVWFKDOOHQJLQJDVSHFWRIVWDELOL]LQJDMXQJOHPD\EH
GHWHUPLQLQJ ZKDW HVVHQWLDO VHUYLFHV FLYLOLDQV UHTXLUH DQG WKHQ WUDQVSRUWLQJ WKH QHFHVVDU\ UHVRXUFHV WR WKH
SRLQWRIQHHG+RZHYHUZLWKRQO\UXGLPHQWDU\DQWHEHOOXPLQIUDVWUXFWXUHDQGEDVLFHVVHQWLDOVHUYLFHVSUHVHQW
MXQJOHVWDELOLW\RSHUDWLRQV SURYHOHVVFRPSOH[WKDQLQRWKHUHQYLURQPHQWV)RUH[DPSOHWKHODFNRIODUJH
SRZHU JHQHUDWLRQ VWDWLRQV UHGXFHV WKH GHPDQG IRU VSHFLDOL]HG HQJLQHHUV WR UHVWRUH HOHFWULFDO SRZHU EXW
LQFUHDVHVGHPDQGIRUVPDOOJHQHUDWRUUHSDLUVSHFLDOLVWVWRUHVWRUHHOHFWULFDOVHUYLFHWRYLOODJHV6LPSOHHIIRUWV
VXFKDVWKHUHPRYDORIEDWWOHGDPDJHGHTXLSPHQWDQGWKHUHRSHQLQJRIURDGVDQGWUDLOVRIWHQJRDORQJZD\
WRZDUGVVWDELOL]LQJWKHHQYLURQPHQWHQRXJKIRUORFDOLQKDELWDQWVWRUHVXPHUHODWLYHO\QRUPDOSDWWHUQVRIOLIH
 6WDELOLW\ RSHUDWLRQV UHTXLUH FDUHIXO IRUFH WDLORULQJ WR HQVXUH WKH ULJKW PL[ RI VHFXULW\ IRUFHV DQG
HQDEOHUVDUHDYDLODEOHWRDGGUHVVVWDELOL]DWLRQUHTXLUHPHQWVDVFRQGLWLRQVHYROYHWKURXJKRXWWKH$2,QLWLDO
VWDELOLW\RSHUDWLRQVRIWHQUHTXLUHDSUHSRQGHUDQFHRIVHFXULW\IRUFHVDQGWUDQVSRUWDWLRQDVVHWVWRUHVWRUHRUGHU
DQGHVWDEOLVKFLYLOVHFXULW\$VFRQGLWLRQVHYROYHDQGWKHKRVWQDWLRQDVVXPHVJUHDWHUUHVSRQVLELOLW\IRUEDVLF
FLYLO VHFXULW\ WKH -)& PD\ UHTXLUH DGGLWLRQDO FLYLO DIIDLUV DQG HQJLQHHU DVVHWV WR UHSDLU RU LPSURYH
LQIUDVWUXFWXUH8QLTXHWRWKHMXQJOHVWDELOL]DWLRQRSHUDWLRQVDUHOLNHO\WRUHTXLUHVLJQLILFDQWDYLDWLRQDVVHWVWR
ERWKDVVHVVWKHSRSXODWLRQ¶VQHHGVDQGWUDQVSRUWUHTXLVLWHUHVRXUFHVWRWKHSRLQWRIQHHG6SHFLDOL]HGHQJLQHHU
VXSSRUWPD\EHQHFHVVDU\WRFOHDUODQGLQJ]RQHVDQGGURS]RQHVLQVXSSRUWRIDYLDWLRQRSHUDWLRQV
 &LYLODIIDLUVHQJLQHHUVPHGLFDOXQLWVDQGPLOLWDU\SROLFHKDYHWKHWUDLQLQJDQGHTXLSPHQWWRVXSSRUW
VWDELOLW\ RSHUDWLRQV 0DQ\ RI WKHVH IRUFHV VXFK DV FLYLO DIIDLUV DQG PHGLFDO XQLWV DOVR UHTXLUH GHGLFDWHG
VXVWDLQPHQW DQG WUDQVSRUWDWLRQ VXSSRUW WR IXOILOO WKHLU PLVVLRQ DQG FRPPDQGHUV PXVW DFFRXQW IRU WKHVH
DGGLWLRQDOUHTXLUHPHQWV&LYLODIIDLUVSOD\VDYLWDOUROHLQDVVHVVLQJWKHSRSXODWLRQ¶VQHHGVDQGWKHQZRUNLQJ
ZLWKWKH-)&1*2VDQG,*2VWRLPSURYHFRQGLWLRQVIRUWKHORFDOSRSXODFH(QJLQHHUVSURYLGHFRQVWUXFWLRQ
FDSDELOLWLHV DQG FDQ EXLOG GLVORFDWHG SHUVRQV FDPSV FOHDU DQG LPSURYH URDGV DQG GLVDUP DQG UHPRYH
XQH[SORGHGRUGLQDQFHRUPLQHV0HGLFDOXQLWVSURYLGHKXPDQLWDULDQDVVLVWDQFHDQGHVVHQWLDOPHGLFDOVHUYLFHV
LQDUHDVZKHUHORFDOKRVSLWDOVFDQQRORQJHUPHHWWKHSRSXODWLRQ¶VQHHG0LOLWDU\SROLFHDVVLVWORFDOVHFXULW\
IRUFHVZLWKUHHVWDEOLVKLQJODZDQGRUGHUDQGFLYLOFRQWURO0LOLWDU\SROLFHDOVRFRQGXFW35&WRHQVXUHWKH
RUGHUO\ PRYHPHQW RI GLVORFDWHG FLYLOLDQV DQG WR SURWHFW FULWLFDO DVVHWV DQG UHVRXUFHV IURP ORRWLQJ
H[SORLWDWLRQRUFDSWXUHE\HQHP\IRUFHV5HVRXUFHFRQWURODFWLYLWLHVLQFOXGH²

6HSWHPEHU $730&73& 

&KDSWHU

z 6HFXULQJH[LVWLQJKDUYHVWVWRUDJHIDFLOLWLHVWRSUHYHQWVSRLODJHDQGORRWLQJ
z ,PSOHPHQWLQJUDWLRQLQJDQGGLVWULEXWLRQSURJUDPVIRUNH\FRPPRGLWLHVVXFKDVIRRGDQGIXHO
z (VWDEOLVKLQJERUGHUVHFXULW\LQFOXGLQJFXVWRPVSURFHGXUHVWRSUHYHQWDUPVVPXJJOLQJKXPDQ
WUDIILFNLQJDQGRWKHUFRQWUDEDQGVXFKDVPRYLQJGUXJVRUFXUUHQF\
z 5HJXODWLQJDQGVHFXULQJDFFHVVWRYDOXDEOHQDWXUDOUHVRXUFHV
z 6WRSSLQJSRDFKLQJDQGLOOLFLWWUDGHLQQDWXUDOUHVRXUFHVDQGGHYHORSLQJPHFKDQLVPVWREULQJWUDGH
XQGHUFLYLOFRQWURODQGUHJXODWLRQ
z 'HYHORSLQJSURFHVVHVWRDGGUHVVLVVXHVRYHUUHVRXUFHDFFHVVSURSHUW\ULJKWVDQGRZQHUVKLS
z 3URWHFWLQJDQGVHFXULQJYLWDOLQVWLWXWLRQVVXFKDVJRYHUQPHQWEXLOGLQJVDQGDUFKLYHVPXVHXPV
UHOLJLRXVVLWHVFRXUWKRXVHVZDWHUWUHDWPHQWSODQWVDQGFRPPXQLFDWLRQVIDFLOLWLHV

67$%,/,7<23(5$7,2167$6.6
 6WDELOLW\RSHUDWLRQVVHHNWRVWDELOL]HWKHHQYLURQPHQWIRUWKHKRVWQDWLRQWREHJLQWRUHVROYHWKHURRW
FDXVHVRIFRQIOLFWDQGVWDWH IDLOXUH 8OWLPDWHO\VWDELOLW\RSHUDWLRQV DLP WRWUDQVLWLRQ IXOOUHVSRQVLELOLW\ IRU
VHFXULW\DQGFLYLODGPLQLVWUDWLRQWRDOHJLWLPDWHDXWKRULW\7KLVDXWKRULW\PD\EHDQ,*2VXFKDVWKH8QLWHG
1DWLRQVRUDOHJLWLPDWHJRYHUQLQJERG\RIWKHKRVWQDWLRQ
 6WDELOLW\RSHUDWLRQVLQYROYHERWKFRHUFLYHDQGFRRSHUDWLYHDFWLRQV 8QLWVFRQGXFWWKHPLQVLWXDWLRQV
ZKHQWKHFLYLODXWKRULW\FDQQRWSURYLGHWKHQHFHVVDU\VHFXULW\DQGFRQWUROIRUMXQJOHLQKDELWDQWVDVDUHVXOW
RI²
z 'HFLVLYHDFWLRQGXULQJDMRLQWRSHUDWLRQ
z 1DWXUDOGLVDVWHUVUHVXOWLQJLQLQHIIHFWLYHFLYLODXWKRULWLHV
z )RUHLJQVXEYHUVLRQODZOHVVQHVVLQVXUJHQF\RUWHUURULVP

 ,QLWLDOO\VWDELOLW\RSHUDWLRQVIRFXVRQWKHPLQLPXPHVVHQWLDOVWDELOLW\WDVNVRISURYLGLQJVHFXULW\IRRG
ZDWHU VKHOWHU DQG PHGLFDO WUHDWPHQW 2QFH FRQGLWLRQV DOORZ WKHVH WDVNV DUH D OHJDO UHVSRQVLELOLW\ RI
$UP\0DULQH&RUSVIRUFHV+RZHYHUFRPPDQGHUVPD\QRWXVH$UP\0DULQH&RUSVIRUFHVFRQGXFWDOOWKHVH
HVVHQWLDOWDVNVLIDSSURSULDWHFLYLOLDQRUJDQL]DWLRQVDUHDYDLODEOHWRDGHTXDWHO\SHUIRUPWKHP$VFRQGLWLRQV
DQGWLPHDOORZWKHHIIRUWZLOOWUDQVLWLRQWRPRUHGHOLEHUDWHH[HFXWLRQRIWKHVL[VWDELOLW\RSHUDWLRQVWDVNV6HH
-3$'3RU0&:3IRUDGGLWLRQDOLQIRUPDWLRQRQVWDELOLW\RSHUDWLRQV
 7KH$UP\0DULQH&RUSVXWLOL]HGLIIHUHQW\HWFRPSDWLEOHVWDELOLW\WDVNV6HHWDEOHIRUDEUHDNGRZQ
RIWKHVWDELOLW\WDVNV
7DEOH-RLQW$UP\DQG0DULQH&RUSVVWDELOLW\WDVNV
Joint Stability Functions Army Stability Operations Tasks Marine Corps Stability Tasks
6HFXULW\ (VWDEOLVKFLYLOVHFXULW\ (VWDEOLVKFLYLOVHFXULW\
3URYLGHKXPDQLWDULDQDVVLVWDQFH
)RUHLJQKXPDQLWDULDQ
5HVWRUHHVVHQWLDOVHUYLFHV 6XSSRUWDQGRUSURYLGH
DVVLVWDQFH
UHVWRUDWLRQRIHVVHQWLDOVHUYLFHV
(FRQRPLFVWDELOL]DWLRQDQG 6XSSRUWWRHFRQRPLFDQG 6XSSRUWHFRQRPLFDQG
LQIUDVWUXFWXUH LQIUDVWUXFWXUHGHYHORSPHQW LQIUDVWUXFWXUHGHYHORSPHQW
6XSSRUWHVWDEOLVKPHQWRIFLYLO
5XOHRIODZ 6XSSRUWWRFLYLOFRQWURO
FRQWURO
6XSSRUWWRJRYHUQDQFH
*RYHUQDQFHDQGSDUWLFLSDWLRQ 6XSSRUWWRJRYHUQDQFH
&RQGXFWVHFXULW\FRRSHUDWLRQ

(67$%/,6+&,9,/6(&85,7<
 &LYLOVHFXULW\LVWKHSURYLVLRQRIVHFXULW\IRUVWDWHHQWLWLHVDQGWKHSRSXODWLRQLQFOXGLQJSURWHFWLRQIURP
LQWHUQDODQGH[WHUQDOWKUHDWV(VWDEOLVKLQJDVDIHVHFXUHDQGVWDEOHHQYLURQPHQWLVFUXFLDOWRREWDLQLQJORFDO
VXSSRUW IRU PLOLWDU\ RSHUDWLRQV $UP\0DULQH &RUSV IRUFHV HVWDEOLVK FLYLO VHFXULW\ ZKHQ FRQIOLFW RU VWDWH
FROODSVHLQKLELW+1VHFXULW\DQGSROLFHIRUFHVIURPPDLQWDLQLQJRUGHU+RZHYHUDVVRRQDVD+1VHFXULW\

 $730&73& 6HSWHPEHU

 -XQJOH6WDELOLW\2SHUDWLRQV

IRUFHFDQSHUIRUPWKLVWDVN$UP\0DULQH&RUSVIRUFHVWUDQVLWLRQFLYLOVHFXULW\UHVSRQVLELOLWLHVWRWKHP&LYLO
VHFXULW\VHWVWKHFRQGLWLRQVIRUHQGXULQJVWDELOLW\DQGSHDFH
 :KHQHVWDEOLVKLQJFLYLOVHFXULW\LQUXUDOMXQJOHDUHDVFRPPDQGHUVPDNHHYHU\HIIRUWQRWWRUHORFDWH
SRSXODWLRQV IURP WKHLU KRPHV RU YLOODJHV 5HORFDWLQJ ODUJH VHJPHQWV RI WKH SRSXODWLRQ WR VHFXUH DUHDV RU
FDPSVRXWVLGHWKHLUWUDGLWLRQDOKRPHRUYLOODJHFDQFUHDWHPDVVGLVFRQWHQWDQGGHVWDELOL]HWKH$27KLVFDQ
DLGHQHP\LQIRUPDWLRQRSHUDWLRQVDQGSHUVXDGHRWKHUZLVHXQFRPPLWWHGORFDOSRSXODWLRQVWRDFWLYHO\VXSSRUW
WKHHQHP\%HFDXVHPRVWMXQJOHSRSXODWLRQVSUDFWLFHDJULFXOWXUHRUVLPLODUWUDGHVWKH\QHHGWRUHPDLQRQRU
QHDU WKHLU IDUPV 7R HQDEOH HFRQRP\ RI IRUFH RSHUDWLRQV DQG QHJDWH WKH QHHG WR FRPPLW FRPEDW XQLWV WR
VHFXULQJVPDOOYLOODJHVLQVWHDGRIUHORFDWLQJWKHVHSRSXODWLRQVFRPPDQGHUVFDQPDQWUDLQDQGHTXLSDORFDO
IRUFHWRVHFXUHWKHVHDUHDV,ISRVVLEOHWKLVIRUFHFRQVLVWVRIPHPEHUVRIWKHORFDOFRPPXQLW\&RPPDQGHUV
FDQDOVRHPSOR\H[LVWLQJ+1VHFXULW\IRUFHVWRFRQGXFWEDVLFVHFXULW\WDVNVVXFKDVFKHFNSRLQWRSHUDWLRQV
DQGORFDOVHFXULW\

3529,'(+80$1,7$5,$1$66,67$1&(
 &RQIOLFWHVSHFLDOO\H[WHQGHGFRQIOLFWUHVXOWVLQKXPDQVXIIHULQJFDXVHGE\DFXWHVKRUWDJHRIZDWHU
IRRGVKHOWHUFORWKLQJEHGGLQJDQGPHGLFDOFDUH0DULQH&RUSVIRUFHVRIWHQDUULYHDVWKHILUVWUHVSRQVHIRUFH
DQGVXSSRUW+1HIIRUWVWRSURYLGHKXPDQLWDULDQDVVLVWDQFHZLWKORJLVWLFVGLVWULEXWLRQFRPPXQLFDWLRQVDQG
RWKHUUHOLHIFDSDELOLWLHVDQGVXSSOLHV0RVWRIWHQ0DULQH&RUSVRSHUDWLQJIRUFHVZRUNLQVXSSRUWRIRWKHU
86JRYHUQPHQWGHSDUWPHQWVDQGDJHQFLHVWKHKRVWQDWLRQRURWKHUV'HSHQGLQJRQWKHVLWXDWLRQSURYLGLQJ
KXPDQLWDULDQDVVLVWDQFHPD\LQFOXGHWKUHHVXEWDVNV SURYLGLQJORFDOVHFXULW\GLVWULEXWLQJUHOLHIVXSSOLHVDQG
VXSSRUWLQJGLVORFDWHGFLYLOLDQV6HH0&:3DQG$730&53$>0&53&@IRU
DGGLWLRQDOLQIRUPDWLRQUHJDUGLQJKXPDQLWDULDQDVVLVWDQFH
 3URYLGLQJKXPDQLWDULDQDVVLVWDQFHWRMXQJOHSRSXODWLRQVLVRIWHQFRPSOLFDWHGE\WKHODFNRIH[LVWLQJ
LQIUDVWUXFWXUHVXFKDVURDGVEULGJHVDQGSRUWVDQGWKHUHPRWHQHVVRIYLOODJHVDQGSRSXODWLRQFHQWHUV$V
VXFKWKHVHRSHUDWLRQVSODFHDQLQFUHDVHGGHPDQGRQORJLVWLFVDQGRIWHQUHTXLUHDGGLWLRQDODYLDWLRQDVVHWVWR
WUDQVSRUWDLGZKHUHJURXQG/2&VDUHGDPDJHGRULPSDVVDEOH5HOLHIVXSSOLHVPD\DOVRQHHGWREHWUDQVSRUWHG
DQGGLVWULEXWHGLQSDFNDJHGYHUVXVEXONFRQILJXUDWLRQ%XONZDWHURUIXHOPD\SURYHWRRGLIILFXOWWRWUDQVSRUW
WRLVRODWHGGLVWULEXWLRQFHQWHUVE\DLURURYHUXQLPSURYHGRUGDPDJHGJURXQG/2&V

683325772&,9,/&21752/6833257(67$%/,6+0(172)&,9,/&21752/
 6XSSRUWWRFLYLOFRQWUROIRFXVHVRQMXVWLFHUHIRUPHVWDEOLVKLQJWKHUXOHRIODZDQGPDLQWDLQLQJSXEOLF
RUGHU&LYLOFRQWUROLVXQGHUSLQQHGE\WKH+1MXGLFLDU\SROLFHDQGFRUUHFWLRQVV\VWHPV&LYLOFRQWUROWDVNV
DORQJZLWKRYHUVLJKWDFFRXQWDELOLW\DQGWUDQVSDUHQF\RIWKHMXVWLFHVHFWRUGHWHUFRUUXSWLRQWKDWWKUHDWHQV
WKHVHFXULW\MXVWLFHDQGOHJLWLPDF\RIWKH+1JRYHUQPHQW
 7R VWUHQJWKHQ FLYLO FRQWURO DQG WKH UXOH RI ODZ $UP\0DULQH &RUSV XQLWV VHHN WR LPSURYH WKH
FDSDELOLW\FDSDFLW\DQGOHJLWLPDF\RI+1MXGLFLDODQGFRUUHFWLRQVV\VWHPVE\SURYLGLQJWUDLQLQJDQGVXSSRUW
WRODZHQIRUFHPHQWDQGMXGLFLDOSHUVRQQHO$UP\0DULQH&RUSVXQLWVIRFXVRQLPSOHPHQWLQJWHPSRUDU\RU
LQWHULPFDSDELOLWLHVWROD\WKHIRXQGDWLRQIRU +1MXGLFLDOV\VWHPVZKHQFRQGXFWLQJVWDELOLW\RSHUDWLRQVLQ
MXQJOHHQYLURQPHQWV
 $UP\0DULQH&RUSVIRUFHVUHFRJQL]HWKDWFLYLOFRQWUROLQPDQ\MXQJOHHQYLURQPHQWVPD\DSSHDUDQG
IXQFWLRQGLIIHUHQWO\IURPLQZHVWHUQVRFLHWLHV%HFDXVHRIWKHYDVWGLVWDQFHVEHWZHHQYLOODJHVDQGSRSXODWLRQ
FHQWHUV²DQG WKH FKDOOHQJHV DVVRFLDWHG ZLWK WUDYHOOLQJ DFURVV MXQJOHV²FLYLO FRQWURO IXQFWLRQV DUH RIWHQ
GHFHQWUDOL]HGDQGDIHGHUDOSUHVHQFHLVDEVHQW&RPPDQGHUVGRQRWDWWHPSWWRIRUFHFHQWUDOL]HGFLYLOFRQWURO
PHFKDQLVPV RQWR DUHDV RU UHJLRQV ZKHUH WKH\ GLG QRW H[LVW EHIRUH KRVWLOLWLHV RU GLVDVWHU GLVUXSWHG WKH
HQYLURQPHQW,QVWHDGWKH\SURPRWHUHHVWDEOLVKLQJGHFHQWUDOL]HGV\VWHPVDQGSURFHVVHVIRUSURYLGLQJFLYLO
FRQWURO 7KLV RIWHQ PHDQV XVLQJ ORFDO FRXQFLOV RU OHDGHUVKLS WR VHWWOH FLYLO GLVSXWHV RU FRQFHUQHG FLWL]HQ
FRXQFLOVWRPDLQWDLQRUGHU

6HSWHPEHU $730&73& 

&KDSWHU

5(6725((66(17,$/6(59,&(66833257$1'253529,'(5(6725$7,212)(66(17,$/
6(59,&(6
 5HVWRULQJHVVHQWLDOVHUYLFHVDOORZVMXQJOHLQKDELWDQWVWRUHWXUQWRWKHLUGDLO\DFWLYLWLHVDQGSUHYHQWV
IXUWKHUGHVWDELOL]DWLRQ,GHDOO\WKH+1JRYHUQPHQWDQGFLYLOLDQUHOLHIDJHQFLHVZRUNEHVWWRUHVWRUHHVVHQWLDO
VHUYLFHV+RZHYHUZKHQSDUWQHURUJDQL]DWLRQVDUHQRWZHOOHVWDEOLVKHGRUODFNFDSDFLW\$UP\0DULQH&RUSV
IRUFHVFDQDLGLQWKHVHWDVNVXQWLOUHOLHYHGE\RWKHURUJDQL]DWLRQV0RVWRIWHQ$UP\0DULQH&RUSVIRUFHV
VXSSRUW WKHVH +1 JRYHUQPHQW DQG FLYLOLDQ UHOLHI DJHQFLHV LQ UHVWRULQJ HVVHQWLDO VHUYLFHV7KHVH DJHQFLHV
DORQJZLWKWKH+1JRYHUQPHQWRIWHQSRVVHVVFULWLFDONQRZOHGJHUHJDUGLQJZKDWVHUYLFHVDUHUHTXLUHGZKHUH
WKH\ DUH EHVW GHOLYHUHG DQG ZKDW GHOLYHU\ PHWKRG ZRUNV EHVW LQ WKH ORFDO HQYLURQPHQW ,Q WKLV FDSDFLW\
$UP\0DULQH&RUSVIRUFHVDUHHQDEOHUVWKDWSURYLGHORJLVWLFVDQGVXVWDLQPHQWVXSSRUWWRUHOLHIDJHQFLHVZLWK
WKH+1JRYHUQPHQWLQWKHOHDG
 $W WKHWDFWLFDOOHYHOHVVHQWLDOVHUYLFHVDUHRIWHQ JURXSHGXQGHUWKHDFURQ\P6:($7062 ZKLFK
VWDQGVIRUVHZDJHZDWHUHOHFWULFLW\DFDGHPLFVWUDVKPHGLFDOVDIHW\RWKHUFRQVLGHUDWLRQV/HDGHUVXVHWKLV
DFURQ\PWRERWKDVVHVVWKHVWDWXVRIORFDOHVVHQWLDOVHUYLFHVDQGWKHQEXLOGOLQHVRIHIIRUWLQUHVWRULQJWKHVH
VHUYLFHV
 6:($7062 DVVHVVPHQWV FRQGXFWHG RQ UXUDO FRPPXQLWLHV LQ WKH MXQJOH DUH WHPSHUHG E\ WKH
HQYLURQPHQWDO FRQWH[W SUHYDOHQW LQ WKH JLYHQ DUHD 0RVW UXUDO MXQJOH FRPPXQLWLHV UHO\ RQ WKH QDWXUDO
HQYLURQPHQWWRSURYLGHUHVRXUFHVQHFHVVDU\IRUHVVHQWLDOVHUYLFHVDQGGRQRWUHTXLUHWKHHODERUDWHVHUYLFH
V\VWHPVIRXQGLQDUHDVZLWKJUHDWHUSRSXODWLRQGHQVLWLHV)RUH[DPSOHVHZDJHPD\EHKDQGOHGE\FRPSRVWLQJ
WRLOHWVZDWHUSURYLGHGE\DYLOODJH¶VZHOOHOHFWULFLW\JHQHUDWHGE\VPDOOGLHVHOJHQHUDWRUVWUDVKGLVSRVDOE\
ORFDO EXUQLQJ RU IHUWLOL]HU XVH DQG PHGLFDO WUHDWPHQW E\ D URWDWLQJ FOLQLFDO VWDII 7KH FKDOOHQJH IRU
FRPPDQGHUVVHHNLQJWRUHVWRUHHVVHQWLDOVHUYLFHVDFURVVUXUDOMXQJOHDUHDVLVQRWLQWKHFRPSOH[LW\RIWKH
VHUYLFHV EXW LQ HQVXULQJ WKDW VLPSOH VHUYLFHV DUH UHVWRUHG DFURVV ZLGH DUHDV FKDUDFWHUL]HG E\ UHVWULFWLYH
WHUUDLQ2IWHQUHVWRULQJWUDIILFDELOLW\DORQJNH\URDGVWUDLOVDQGZDWHUZD\VJRHVDORQJZD\LQUHVWRULQJWKH
ORFDO SRSXODWLRQ¶V DELOLW\ WR UHFHLYH PLQLPXPHVVHQWLDO VHUYLFHV )LJXUH  RIIHUV DQ H[DPSOH RI KRZ
SODQQHUV FDQ XVH 6:($7062 FULWHULD WR HVWDEOLVK OLQHV RI HIIRUW IRU UHVWRULQJ HVVHQWLDO VHUYLFHV LQ WKH
MXQJOH

)LJXUH6DPSOHMXQJOH6:($7062OLQHVRIHIIRUW

 $730&73& 6HSWHPEHU

 -XQJOH6WDELOLW\2SHUDWLRQV

683325772*29(51$1&(
 *RYHUQDQFHLVWKHVHWRIDFWLYLWLHVFRQGXFWHGE\DJRYHUQPHQWRUFRPPXQLW\RUJDQL]DWLRQWRPDLQWDLQ
VRFLHWDORUGHUGHILQHDQGHQIRUFHULJKWVDQGREOLJDWLRQVDQGDOORFDWHJRRGVDQGVHUYLFHVIDLUO\(IIHFWLYH
OHJLWLPDWHJRYHUQDQFHHQVXUHVWKHVHDFWLYLWLHVDUHWUDQVSDUHQWDFFRXQWDEOHDQGLQYROYHSXEOLFSDUWLFLSDWLRQ
(OHFWLRQVZKLOHRIWHQDQHQGVWDWHFRQGLWLRQLQSODQQLQJGRQRWHQVXUHWKHVHRXWFRPHV 7\SLFDOO\MXQJOH
HQYLURQPHQWVKDYHVRFLHWLHVGLYLGHGDORQJHWKQLFWULEDORUUHOLJLRXVOLQHVVRHOHFWLRQVPD\IXUWKHUSRODUL]H
IDFWLRQV,IDKRVWQDWLRQ¶VJRYHUQPHQWRUFRPPXQLW\RUJDQL]DWLRQVFDQQRWSURYLGHJRYHUQDQFHWKHFRXQWU\
PD\ QHHG VRPH GHJUHH RI PLOLWDU\ VXSSRUW ,Q H[WUHPH FDVHV ZKHUH FLYLO JRYHUQPHQW RU FRPPXQLW\
RUJDQL]DWLRQVDUHG\VIXQFWLRQDORUDEVHQW LQWHUQDWLRQDO ODZUHTXLUHV PLOLWDU\ IRUFHVWRSURYLGHEDVLFFLYLO
DGPLQLVWUDWLRQ

683325772 (&2120,&$1',1)5$6758&785('(9(/230(17
 /RQJWHUPVWDELOLW\LQWKHMXQJOHHQYLURQPHQWUHTXLUHVWKHFUHDWLRQRIDVXVWDLQDEOHMXQJOHHFRQRP\
DQG DQ LQIUDVWUXFWXUH WR VXSSRUW LW ,Q SRVWFRQIOLFW DQG IUDJLOH VWDWHV +1 DFWRUV RIWHQ KDYH WKH EHVW
TXDOLILFDWLRQVWROHDGHIIRUWVWRUHVWRUHDQGKHOSGHYHORS+1HFRQRPLFFDSDELOLWLHVQRWLQWHUDJHQF\SDUWQHUV
FLYLOLDQ UHOLHI RUJDQL]DWLRQV RU LQWHURUJDQL]DWLRQDO SDUWQHUV +RZHYHU LI VHFXULW\ FRQVLGHUDWLRQV RU RWKHU
IDFWRUV UHVWULFW WKHLU DELOLW\ WR LQWHUYHQH $UP\0DULQH &RUSV XQLWV VKRXOG DVVLVW +1 HQWLWLHV LQ IRVWHULQJ
VXVWDLQDEOH HFRQRPLF DQG LQIUDVWUXFWXUH GHYHORSPHQW 3UHVHUYLQJ DVVHWV VXFK DV SURGXFWLRQ IDFLOLWLHV
KRVSLWDOVXQLYHUVLWLHVH[LVWLQJFRPSDQLHVDQGPDUNHWVGUDPDWLFDOO\UHGXFHVWKHWLPHUHTXLUHGWRUHHVWDEOLVK
DVXVWDLQDEOHOHYHORIHFRQRPLFDFWLYLW\
 %HFDXVH MXQJOHV DUH SUHGRPLQDWHO\ UXUDO WKH EXON RI WKH MXQJOH HFRQRP\ FHQWHUV RQ DJULFXOWXUH
$UP\0DULQH&RUSVIRUFHVVXSSRUWLQJHFRQRPLFGHYHORSPHQWGLUHFWWKHLUHIIRUWVWRZDUGVHQVXULQJIDUPHUV
KDYHDFFHVVWRUHVRXUFHVVXFKDVVHHGVDQGIHUWLOL]HUDQGPDUNHWVWRVHOORUWUDGHWKHLUSURGXFH7KLVPD\
UHTXLUHDFWLRQVWRFOHDURULPSURYH/2&VVHFXUHPDUNHWVRUUHEXLOGGDPDJHGLQIUDVWUXFWXUHVXFKDVEULGJHV
FDQDOVRUOHYLHV7KH 86'HSDUWPHQWRI $JULFXOWXUHFDQSURYLGHDGGLWLRQDOLQIRUPDWLRQDQGVXSSRUWIRU
XQLWVUHTXLULQJPRUHLQWHQVLYHDJULFXOWXUDOGHYHORSPHQWDVVLVWDQFH'HSHQGLQJRQWKHQDWLRQ¶VQHHGDQGWKH
VL]HRIWKH86SUHVHQFH'HSDUWPHQWRI$JULFXOWXUHOLDLVRQVPD\EHIRXQGRQWKH$PHULFDQ(PEDVV\VWDII
RUUHTXHVWHGWKURXJKWKHFRXQWU\WHDP
 ,QMXQJOHVZLWKLGHQWLILHGQDWXUDOUHVRXUFHGHSRVLWVVXFKDVIRVVLOIXHOVRUPLQHUDOVFRPPDQGHUVVHFXUH
DQGSURWHFWWKHUHVRXUFHVLWHDQGWKHLQIUDVWUXFWXUHUHTXLUHGWRVXSSRUWLWVH[WUDFWLRQ&RPPDQGHUVFRQVLGHU
PLQHV TXDUULHV UHILQHULHV DQG SLSHOLQHV DV NH\ WHUUDLQ 8QLWV VHFXUH WKHP DV VRRQ DV SRVVLEOH DIWHU WKH
FHVVDWLRQRIODUJHVFDOHFRPEDWRUGLVDVWHUUHFRYHU\RSHUDWLRQV5HVRXUFHVLWHVDQGLQIUDVWUXFWXUHDUHYLWDOWR
IXHOLQJWKHFRXQWU\¶VHFRQRP\DQGIDFLOLWDWLQJLWVORQJWHUPVWDELOLW\DQGUHFRYHU\&RPPDQGHUVSURWHFWWKHVH
VLWHVIURPORRWLQJRUH[SORLWDWLRQE\WKHORFDOSRSXODFHDQGWKLUGSDUW\DFWRUVVXFKDVQHLJKERULQJVWDWHV
XQWLOWKHOHJLWLPDWHDXWKRULW\HQWLWOHGWRWKHSURSHUW\DQGLWVFRQWHQWVFDQSURSHUO\SURWHFWWKHP
 :KHQFRQGXFWLQJUHFRQVWUXFWLRQDQGLQIUDVWUXFWXUHUHSDLUFRPPDQGHUVFRQVLGHUXVLQJWKHVHDFWLYLWLHV
WRLPSURYHWKHMXQJOHHFRQRP\DQGSURYLGHOHJLWLPDF\WRWKH+1DXWKRULWLHV/RFDOFRQWUDFWVRIIHUDWRROIRU
FRPPDQGHUVWRUHVWRUHHVVHQWLDOVHUYLFHVUHEXLOGNH\LQIUDVWUXFWXUHDLGHFRQRPLFGHYHORSPHQWDQGUHGXFH
GHSHQGHQF\RQ86IRUFHVDQGUHVRXUFHV7KURXJKFRQWUDFWLQJRIILFHUVFRPPDQGHUVDZDUGFRQVWUXFWLRQRU
VHUYLFHFRQWUDFWVWRORFDOEXVLQHVVHV7KHVHFRQWUDFWVWKHQVWLPXODWHWKHORFDOHFRQRP\E\LQFUHDVLQJDYDLODEOH
FXUUHQF\ DQG LPSURYLQJ HPSOR\PHQW 7KLV VWLPXODWLRQ DGGLWLRQDOO\ UHGXFHV WKH QXPEHU RI XQHPSOR\HG
FLYLOLDQVYXOQHUDEOHWRH[SORLWDWLRQE\JXHUULOODVRULQVXUJHQWV/RFDOFRQVWUXFWLRQFRQWUDFWVFDQDOVRLPEXH
WKHFRPPXQLW\ZLWKDVHQVHRISULGHLQWKHUHVWRUDWLRQRIWKHLUYLOODJHDQGIRVWHUEX\LQ:KHQGRQHLQFRQFHUW
ZLWK WKH +1 RU ORFDO JRYHUQPHQW UHFRQVWUXFWLRQ SURMHFWV HQKDQFH OHJLWLPDF\ DQG FUHGLELOLW\ +RZHYHU
DZDUGLQJORFDOFRQWUDFWVIRUVKRUWWHUPSURMHFWVGRHVQRWUHSODFHWKHQHHGIRUORQJWHUPHFRQRPLFSODQQLQJ
DQGWKHGHYHORSPHQWRIVWDEOHMREV

&21'8&76(&85,7<&223(5$7,21
 Security cooperationLVDOO'HSDUWPHQWRI'HIHQVHLQWHUDFWLRQVZLWKIRUHLJQVHFXULW\HVWDEOLVKPHQWVWR
EXLOGVHFXULW\UHODWLRQVKLSVWKDWSURPRWHVSHFLILF8QLWHG6WDWHVVHFXULW\LQWHUHVWVGHYHORSDOOLHGDQGSDUWQHU
QDWLRQPLOLWDU\DQGVHFXULW\FDSDELOLWLHVIRUVHOIGHIHQVHDQGPXOWLQDWLRQDORSHUDWLRQVDQGSURYLGH8QLWHG
6WDWHV IRUFHV ZLWK SHDFHWLPH DQG FRQWLQJHQF\ DFFHVV WR DOOLHG DQG SDUWQHU QDWLRQV -3  6HFXULW\

6HSWHPEHU $730&73& 

&KDSWHU

FRRSHUDWLRQFRPSULVHVPXOWLSOHDFWLYLWLHVSURJUDPVDQGPLVVLRQVDQGLWLVIXQFWLRQDOO\DQGFRQFHSWXDOO\
UHODWHGWRVHFXULW\IRUFHDVVLVWDQFHIRUHLJQLQWHUQDOGHIHQVHDQGVHFXULW\VHFWRUUHIRUP6HFXULW\FRRSHUDWLRQ
SULPDULO\IRFXVHVRQLQWHURSHUDELOLW\SURJUDPVZLWKERWKFRUHSDUWQHUVDQGWKHIOHGJOLQJVHFXULW\IRUFHVRID
IDLOHG RU IDLOLQJ VWDWH 7KHVH SURJUDPV JHQHUDOO\ IRFXV RQ GHYHORSLQJ VHFXULW\ IRUFH GRFWULQH DQG
RUJDQL]DWLRQVHVWDEOLVKLQJIRUPDOL]HGWUDLQLQJDQGH[FKDQJHSURJUDPVDVVLVWLQJZLWKOHDGHUGHYHORSPHQW
HYDOXDWLQJ PDWHULHO FDSDELOLWLHV DVVLVWLQJ ZLWK HTXLSSLQJ +1 IRUFHV DQG VXSSRUWLQJ +1 IRUFHV ZLWK
VSHFLDOL]HGFDSDELOLWLHV6HH)0IRUPRUHLQIRUPDWLRQRQVHFXULW\FRRSHUDWLRQDFWLYLWLHV

75$16,7,21
 7KHWUDQVIHURIDQ$2WRDOHJLWLPDWHDXWKRULW\UHOLHYHV$UP\0DULQH&RUSVIRUFHVRIDUHDVHFXULW\UHDU
DUHDVHFXULW\DQGVWDELOLW\WDVNVDQGUHSUHVHQWVDWUDQVLWLRQIURPRSHUDWLRQVWRFRQVROLGDWHJDLQVWRRSHUDWLRQV
WR VKDSH RU SUHYHQW &RQGLWLRQV RQ WKH JURXQG DQG UHVRXUFHV DYDLODEOH GHWHUPLQH ZKDW VHFXULW\ DQG
FRRSHUDWLRQWDVNVKDYHSULRULW\GXULQJWKHWUDQVIHURUDXWKRULW\DQGDIWHUZDUGV 6RPHWLPHV$UP\0DULQH
&RUSVIRUFHVRFFXS\ORQJWHUPJDUULVRQVWRSUHYHQWDUHFXUUHQFHRIKRVWLOLWLHVDVKDSSHQHGLQ(XURSH-DSDQ
DQG.RUHDLQWKHWZHQWLHWKFHQWXU\$OWHUQDWLYHO\DPRUHUREXVWVHFXULW\FRRSHUDWLRQDUUDQJHPHQWPD\H[LVW
LQYROYLQJ LQWHUQDWLRQDO SHDFHNHHSLQJ IRUFHV WKDW FDQ VXSSODQW D 86 SUHVHQFH 5HJDUGOHVV RI WKH WDVNV
UHTXLUHG LQ D VSHFLILF $2 $UP\0DULQH &RUSV XQLWV FRQWLQXH WR SHUIRUP WKH PLVVLRQV WKDW UHIOHFW WKHLU
VWUDWHJLFUROHVRIVKDSHSUHYHQWZLQDQGFRQVROLGDWHJDLQVLQVXSSRUWRI86LQWHUHVWV
 7UDQVLWLRQLQJDQ$2IURPPLOLWDU\WRFLYLOFRQWUROUHTXLUHVFDUHIXOSODQQLQJDQGFORVHFRRUGLQDWLRQ
DPRQJ XQLILHG DFWLRQ SDUWQHUV 7UDQVLWLRQV DUH JUDGXDO DQG RIWHQ RFFXU RQ D FDVH E\ FDVH EDVLV DFURVV
UHFRYHULQJ VWDWHV $2V ZKHUH FOHDUO\ GLVWLQJXLVKHG VWDELOL]DWLRQ REMHFWLYHV KDYH EHHQ PHW DUH JUDGXDOO\
WUDQVLWLRQHGWRWKHOHJLWLPDWHFLYLODXWKRULW\$2VPD\QRWPHHWVWDELOLW\REMHFWLYHVDWWKHVDPHSDFHDQGDOO
$2V ZLOO QRW WUDQVLWLRQ DORQJ WKH VDPH WLPHOLQH &ULWHULD IRU GHWHUPLQLQJ ZKHQ WR WUDQVLWLRQ DQ $2 LV
FRQGLWLRQVEDVHGQRWWLPHEDVHGDQGUHTXLUHVWKHSUHVHQFHRIDFLYLODXWKRULW\FDSDEOHRIH[HFXWLQJDOOWKH
VWDELOLW\ RSHUDWLRQV WDVNV RQ LWV RZQ 7KLV LV HVSHFLDOO\ WUXH LQ WKH MXQJOH ZKHUH WKH GLIILFXOW WHUUDLQ
FRPSDUWPHQWDOL]HV$2VDFURVVWKHVWDWHDQGPDNHVGLVSDULW\EHWZHHQVWDELOL]DWLRQHIIRUWVPRUHSURQRXQFHG
 -XVWDVWUDQVLWLRQVDFURVVWKHUHFRYHULQJVWDWHDUHJUDGXDODQGYDU\E\$2WUDQVLWLRQVDFURVVDQ$2DUH
JUDGXDODQGUHTXLUH+1IRUFHVWRVXSSODQW$UP\0DULQH&RUSVIRUFHVDWWKHLQGLYLGXDOWHDPVTXDGDQGXQLW
OHYHOV %RWKWKH-)&DQG+1FLYLODQGPLOLWDU\OHDGHUVKLSPRQLWRUWKLVWUDQVLWLRQWRHQVXUHXQLW\RIHIIRUWDQG
FRKHVLRQ,QDGGLWLRQWRWKUHDWFRQVLGHUDWLRQVSODQQLQJIRUWUDQVLWLRQVLQWKHMXQJOHUHTXLUHV WKDWDOOSDUWLHV
WKRURXJKO\XQGHUVWDQG²
z )RUPDODQGLQIRUPDOFLYLOLDQOHDGHUVKLSDQGUHODWLRQVKLSV
z *RYHUQPHQWLQVWLWXWLRQVDQGDGPLQLVWUDWLYHIXQFWLRQV
z 2QJRLQJUHFRQVWUXFWLRQSURMHFWV
z (FRQRPLFV\VWHPVDQGLQLWLDWLYHV
z 3DUWLFLSDWLQJ QRQJRYHUQPHQWDO DQG JRYHUQPHQWDO RUJDQL]DWLRQV HVWDEOLVKHG UHODWLRQVKLSV DQG
FRRSHUDWLRQDFWLYLWLHVSDUWLFXODUO\LQIRUPDWLRQVKDULQJ
z 6LJQLILFDQWNH\HYHQWVDIIHFWLQJRUOLNHO\WRDIIHFWRSHUDWLRQV

:$5),*+7,1*)81&7,21&216,'(5$7,216
 $QHOHPHQWRIGHFLVLYHDFWLRQVWDELOLW\RSHUDWLRQVDUHRIWHQH[HFXWHGDORQJVLGHRIIHQVLYHDQGGHIHQVLYH
RSHUDWLRQV RFFXUULQJ DFURVV WKH MRLQW RSHUDWLRQV DUHD $V D UHVXOW PDQ\ RI WKH ZDUILJKWLQJ IXQFWLRQ
FRQVLGHUDWLRQVSUHYLRXVO\DGGUHVVHGLQ&KDSWHUVDQGDOVRDSSO\WRVWDELOLW\RSHUDWLRQVLQWKHMXQJOH
HQYLURQPHQW 7KH IROORZLQJ FRQVLGHUDWLRQV RUJDQL]HG E\ ZDUILJKWLQJ IXQFWLRQ DGGUHVV WKH MXQJOH¶V
HQYLURQPHQWDOLPSDFWVRQXQLWVFRQGXFWLQJVWDELOLW\RSHUDWLRQV

,1)250$7,21
 ,QIRUPDWLRQ RSHUDWLRQV DUH D FULWLFDO FRPSRQHQW RI HIIHFWLYH VWDELOLW\ RSHUDWLRQV 7KH VXFFHVV RI
VWDELOLW\RSHUDWLRQVRIWHQUHVWVRQWKHORFDOSRSXODWLRQ¶VSHUFHSWLRQRI0DULQH&RUSV¶DFWLRQVLQWKHDUHD$V
VXFKXQLWVXVHLQIRUPDWLRQRSHUDWLRQVWRFRPPXQLFDWHSURJUHVVVKDUHLQWHQWDQGJDUQHUXQGHUVWDQGLQJZLWK
DIIHFWHG DXGLHQFHV $Q XQGHUVWDQGLQJ SRSXODFH LQ WXUQ LQFUHDVHV WKH SDFH RI VWDELOL]DWLRQ DQG GHFUHDVHV

 $730&73& 6HSWHPEHU

 -XQJOH6WDELOLW\2SHUDWLRQV

UHTXLUHPHQWV IRU VHFXULW\ IRUFHV WKHUHE\ HQKDQFLQJ RYHUDOO HIILFLHQF\ ,QIRUPDWLRQ RSHUDWLRQV GXULQJ
VWDELOLW\DUHDOVRXVHGWRGHQ\LQVXUJHQWVRULUUHJXODUIRUFHVWKHDELOLW\WRH[SORLWDSRWHQWLDOO\V\PSDWKHWLF
SRSXODWLRQ ZKLOH WKH $2 UHPDLQV XQVWDEOH 7KHVH RSHUDWLRQV ZRUN EHVW ZKHQ FORVHO\ LQWHJUDWHG ZLWK WKH
LQWHOOLJHQFH ZDUILJKWLQJ IXQFWLRQ WR LGHQWLI\ KRZ WKH HQHP\ LV XVLQJ FXOWXUDO UHOLJLRXV HWKQRJUDSKLF
SROLWLFDOHFRQRPLFDQGFULPLQDOFRQVLGHUDWLRQVWRWKHLUDGYDQWDJH
 $OWKRXJK WHFKQRORJ\ LV FRQVWDQWO\ H[WHQGLQJ LWV UHDFK PDQ\ MXQJOH SRSXODWLRQV ODFN DFFHVV WR
WHOHYLVLRQUDGLRDQGLQWHUQHW5HPRWHMXQJOHLQKDELWDQWVPD\DOVRODFNDEDVLFHGXFDWLRQDQGPDQ\PD\EH
LOOLWHUDWH%HFDXVHRIWKLVFRPPDQGHUVUHFRJQL]HWKDWLQIRUPDWLRQVSUHDGLVRIWHQVORZHULQWKHMXQJOHWKDQ
HOVHZKHUHDQGPD\KDYHWREHFRQWLQXDOO\UHLQIRUFHGWRDFKLHYHWKHGHVLUHGHIIHFW$GGLWLRQDOO\WKHPHVDQG
PHVVDJHVVKRXOGEHVLPSOHDQGDUHRIWHQPRVWHIIHFWLYHZKHQFRPPXQLFDWHGLQSHUVRQWKURXJKDQLQWHUSUHWHU
,QVWUXFWLRQVRQKDQGELOOVRUSDPSKOHWVVKRXOGLQFOXGHLOOXVWUDWLRQVDQGQRWUHO\VROHO\RQWH[W

&200$1'$1'&21752/
 6WDELOLW\RSHUDWLRQVFKDOOHQJHFRPPDQGDQGFRQWUROE\UHTXLULQJXQLWVWRH[HFXWHDZLGHUDQJHRIWDVNV
ZLWKDYDULHW\RIIRUFHVDFURVVDVLQJOH$2'XULQJVWDELOLW\RSHUDWLRQVWDVNVFDQUDQJHIURPDUHDVHFXULW\WR
LQIUDVWUXFWXUHGHYHORSPHQWDQGDFFRPSOLVKLQJWKLVRIWHQUHTXLUHVXQLTXHWDVNRUJDQL]DWLRQV8QLWVZLWKRXW
SUHYLRXVFRPPDQGUHODWLRQVKLSVRUH[SHULHQFHZRUNLQJWRJHWKHUPXVWGHYHORSFRPSOHPHQWDU\V\VWHPVDQG
SURFHVVHVWKDWDFKLHYHXQLW\RIHIIRUW7RDFKLHYHXQLW\RIHIIRUWDPRQJXQLILHGDFWLRQSDUWQHUVFRQGXFWLQJ
VWDELOLW\RSHUDWLRQVFRPPDQGHUVHVWDEOLVKD&02&DQGHQVXUHDSSURSULDWHOLDLVRQVDUHH[FKDQJHGDFURVV
WKHFRPPDQG%HFDXVH$2VFDQYDU\ZLGHO\LQWKHMXQJOHFRPPDQGHUVPD\QHHGVHYHUDO&02&VWRDGGUHVV
WKH XQLTXH VWDELOL]DWLRQ QHHGV RI WKH ORFDO SRSXODFH &02&V DQG OLDLVRQV HQVXUH VHFXULW\ RSHUDWLRQV DQG
VWDELOLW\ WDVNV DUH QRW ZRUNLQJ DW FURVV SXUSRVHV DQG RSHUDWLRQV WR IXUWKHU VHFXUH WKH SRSXODFH RU GHIHDW
UHPDLQLQJWKUHDWVGRQRWXQGHUPLQHHFRQRPLFLQIUDVWUXFWXUHRUJRYHUQDQFHLQLWLDWLYHV

3ROLWLFDODQG0LOLWDU\2EMHFWLYHV
 6WDELOLW\RSHUDWLRQVLQFOXGHDVVHVVPHQWIUDPHZRUNVWKDWFRQWDLQTXDOLWDWLYHDQGTXDQWLWDWLYHFULWHULRQ
WR PHDVXUH SURJUHVV WRZDUGV REMHFWLYHV DQG WKH HIIHFWV QHFHVVDU\ WR PHHW WKRVH REMHFWLYHV 4XDQWLILDEOH
FULWHULDPXVWEHPHDVXUDEOHDQGOLQNFDXVHZLWKHIIHFW4XDOLWDWLYHFULWHULDSURYLGHFRQWH[WDQGLQIRUPWKH
FRPPDQGHU¶VDELOLW\WRIXOO\XQGHUVWDQGDQRSHUDWLRQDOHQYLURQPHQW2IWHQTXDQWLWDWLYHFULWHULDDUHXVHGWR
LQIRUPDQGGHYHORSTXDOLWDWLYHDVVHVVPHQWVRIDQRSHUDWLRQ¶VSURJUHVVWRZDUGVLGHQWLILHGSROLWLFDOREMHFWLYHV
7KHVHFULWHULDDUHNQRZQDV PHDVXUHVRISHUIRUPDQFH 023V DQG PHDVXUHVRIHIIHFWLYHQHVV02(V $
measure of performance LV DQ LQGLFDWRU XVHG WR PHDVXUH D IULHQGO\ DFWLRQ WKDW LV WLHG WR PHDVXULQJ WDVN
DFFRPSOLVKPHQW -3  023V KHOS DQVZHU WKH TXHVWLRQ ³DUH ZH GRLQJ WKLQJV ULJKW"´ $ measure of
effectiveness LV DQ LQGLFDWRU XVHG WR PHDVXUH D FXUUHQW V\VWHP VWDWH ZLWK FKDQJH LQGLFDWHG E\ FRPSDULQJ
PXOWLSOHREVHUYDWLRQVRYHUWLPH-302(VDQVZHUWKHTXHVWLRQ³DUHZHGRLQJWKHULJKWWKLQJV"´7KHVH
PHDVXUHV KHOS GHWHUPLQH LI FKDQJHV WR WKH VWDELOL]DWLRQ OLQHV RI HIIRUW DUH QHFHVVDU\ DQG DUH HVVHQWLDO WR
FRQGXFWLQJDFFXUDWHDVVHVVPHQWV02(VDQG023VDUHDOVRFULWLFDOWRLGHQWLI\LQJWUDQVLWLRQSRLQWV
 *LYHQWKHGLVSDULWLHVEHWZHHQUHPRWHMXQJOHYLOODJHV02(VZLOOOLNHO\YDU\JUHDWO\EHWZHHQWKHP
6RPH YLOODJHV RU FRPPXQLWLHV PD\ KDYH EHHQ XQDIIHFWHG E\ D FRQIOLFW RU GLVDVWHU WKDW ZURXJKW KDYRF
HOVHZKHUH 7KHVH UHODWLYHO\ VHOIVXVWDLQLQJ FRPPXQLWLHV PD\ RQO\ UHTXLUH EDVLF DVVLVWDQFH WR UHWXUQ WR
QRUPDO2IWHQVWDELOLW\RSHUDWLRQVLQWKHVHDUHDV IRFXVRQ UHPRYLQJEDWWOHGDPDJHGYHKLFOHV PLQHVDQG
ERRE\WUDSVVRWKDWLQKDELWDQWVFDQXVHWKH/2&VIRUFRPPHUFHDQGWUDGH2WKHUFRPPXQLWLHVZKHWKHUGXH
WRJHRJUDSK\RUSUR[LPLW\WRILJKWLQJPD\UHTXLUHVLJQLILFDQWUHFRQVWUXFWLRQDQGDLG02(VDQG023VZLOO
GLIIHULQWKHVHVLWXDWLRQVDQGVWDELOLW\RSHUDWLRQVZLOOSURJUHVVDWPDUNHGO\GLIIHUHQWUDWHV

Note. &RPPDQGHUV VKRXOG FRQVXOW WKH 8QLWHG 6WDWHV $JHQF\ IRU ,QWHUQDWLRQDO 'HYHORSPHQW¶V
DOVR NQRZQ DV 86$,' Field Operations Guide for Disaster Assessment and Response ZKHQ
FRQGXFWLQJWKHLUDVVHVVPHQWVDQGGHYHORSLQJ02(VIRUUHOLHIRSHUDWLRQV

6HSWHPEHU $730&73& 

&KDSWHU

,QIRUPDWLRQ2SHUDWLRQV
 Information operations DUH WKH LQWHJUDWHG HPSOR\PHQW GXULQJ PLOLWDU\ RSHUDWLRQV RI LQIRUPDWLRQ
UHODWHGFDSDELOLWLHVLQFRQFHUWZLWKRWKHUOLQHVRIRSHUDWLRQWRLQIOXHQFHGLVUXSWFRUUXSWRUXVXUSWKHGHFLVLRQ
PDNLQJ RI DGYHUVDULHV DQG SRWHQWLDO DGYHUVDULHV ZKLOH SURWHFWLQJ RXU RZQ -3  0DULQH &RUSV
DPSOLILFDWLRQ LV WKH LQWHJUDWLRQ FRRUGLQDWLRQ DQG V\QFKURQL]DWLRQ RI DFWLRQV WDNHQ WR DIIHFW D UHOHYDQW
GHFLVLRQPDNHULQRUGHUWRFUHDWHDQRSHUDWLRQDODGYDQWDJHIRUWKHFRPPDQGHU0&53,QIRUPDWLRQ
RSHUDWLRQV,2DUHDQLPSRUWDQWFRPSRQHQWRIHIIHFWLYHVWDELOLW\RSHUDWLRQVDQGQHFHVVDU\IRULQIOXHQFLQJ
ERWKWKHHQHP\DQG+1DXGLHQFHV9LJRURXV,2LQIOXHQFHVWKHSHUFHSWLRQVGHFLVLRQVDQGZLOORIWKHWKUHDW
HQHP\WKHMXQJOHSRSXODWLRQDQGRWKHUJURXSVLQVXSSRUWRIWKHFRPPDQGHU¶VPLVVLRQ,2REMHFWLYHVDUH
WUDQVODWHGWRLQIRUPDWLRQUHODWHGFDSDELOLW\WDVNVWKDWXQLWVH[HFXWHWRFUHDWHWKHFRPPDQGHU¶VGHVLUHGHIIHFWV
LQ DQG WKURXJK WKH LQIRUPDWLRQ HQYLURQPHQW 7KHVH RSHUDWLRQV LVRODWH D WKUHDW RU HQHP\ IURP VRXUFHV RI
VXSSRUWQHXWUDOL]HKRVWLOHMXQJOHSRSXODWLRQVRUJDLQWKHVXSSRUWRIQHXWUDOSRSXODWLRQVDQG PLWLJDWH WKH
HIIHFWV RI WKUHDW ,2 PLVLQIRUPDWLRQ DQG UXPRUV 'HYHORSLQJ DQ HIIHFWLYH DVVHVVPHQW SODQ LV HVVHQWLDO WR
HQVXULQJ,2REMHFWLYHVDFKLHYHWKHLULQWHQGHGHIIHFW
 %HFDXVH MXQJOH FRPPXQLWLHV RIWHQ ODFN UHOLDEOH LQWHUQHW DQG WHUUDLQ PD\ OLPLW WKH UDQJH RI UDGLR
WUDQVPLVVLRQV ,2 PD\ EH PRVW HIIHFWLYH ZKHQ FRQGXFWHG LQ SHUVRQ E\ VPDOO WHDPV RU XQLWV GHOLYHULQJ
PHVVDJHVKRVWLQJPHHWLQJVRUJLYLQJFODVVHVWRYLOODJHVDFURVVWKH$23UHIHUDEO\WKH+1JRYHUQPHQWRU
VHFXULW\IRUFHVFRQGXFWWKHVHPHHWLQJVZLWK86IRUFHVSURYLGLQJORJLVWLFVXSSRUW

$GDSWDELOLW\
 $GDSWDELOLW\LVFULWLFDOWRVWDELOLW\RSHUDWLRQVLQWKHMXQJOHEHFDXVHXQLWVRIWHQ QHHGWRSHUIRUPWDVNV
RXWVLGHWKHLUWUDGLWLRQDOO\SUHVFULEHGFDSDELOLWLHV7KHGLVSHUVLRQRIUXUDOFRPPXQLWLHVDQGYLOODJHVDFURVV
ZLGHDUHDVRIWHQOHDYHVVPDOOXQLWVUHVSRQVLEOHIRUPRVWVWDELOLW\RSHUDWLRQVWDVNVLQWKHLU$2(IIHFWLYHXQLWV
KDYH WR VLPXOWDQHRXVO\ IXQFWLRQ DV VHFXULW\ IRUFHV DQG ORFDO HQJLQHHUV RU SROLFH )OH[LQJ EHWZHHQ WDVNV
UHTXLUHV DGDSWDEOH XQLWV DQG OHDGHUV ZLOOLQJ WR XVH XQRUWKRGR[ PHWKRGV WR PHHW WKH QHHGV RI WKH ORFDO
SRSXODFH7KH\PXVWLGHQWLI\DQGEXLOGUHODWLRQVKLSVZLWKXQLILHGDFWLRQSDUWQHUVSUHVHQWLQWKHLU$2DQG
H[WHQGLQIOXHQFHEH\RQGWKHLUFKDLQRIFRPPDQG6XFKXQLWVUHTXLUHWKHVXSSRUWRIKLJKHUKHDGTXDUWHUVVWDII
FDSDEOHRIIRUHFDVWLQJVWDELOLW\UHTXLUHPHQWVDQGGHYHORSLQJIOH[LEOHSODQVWRDGMXVWDV$2VUHJLRQVRUVWDWHV
SURJUHVVWKURXJKWKHVWDELOL]DWLRQIUDPHZRUNIURPIDLOLQJWRUHFRYHULQJVWDWHV&RPPDQGHUVHPSOR\PLVVLRQ
FRPPDQGWRSURPRWHGHFHQWUDOL]HGOHDGHUVKLSDQGGHFLVLRQPDNLQJDSSURSULDWHWRWKHGLVSDUDWHFRQGLWLRQV
DFURVVGLIIHUHQW$2V0LVVLRQFRPPDQGHPSRZHUVVXERUGLQDWHVWRPHHWWKHFRPPDQGHU¶VLQWHQWE\WDNLQJ
SURDFWLYHVWHSVWRVWDELOL]HWKHLUUHVSHFWLYH$2V

$JJUHVVLYH&RRUGLQDWLRQDQG6\QFKURQL]DWLRQ
 (IIHFWLYH VWDELOLW\ RSHUDWLRQV UHTXLUH DFWLYH FRRUGLQDWLRQ ZLWK XQLILHG DFWLRQ SDUWQHUV DQG +1
DXWKRULWLHV WKURXJKRXW WKH $2 7KH LQFUHDVHG QXPEHU RI SDUWLFLSDQWV ERWK PLOLWDU\ DQG QRQPLOLWDU\ DQG
GLYHUJHQWPLVVLRQVDQGPHWKRGVFUHDWHDVLJQLILFDQWFRRUGLQDWLRQDQGV\QFKURQL]DWLRQFKDOOHQJH6LJQLILFDQW
SRWHQWLDOIRUGXSOLFDWHGHIIRUWDQGZRUNLQJDWFURVVSXUSRVHVH[LVWV7RPLWLJDWHWKLVFRPPDQGHUVHVWDEOLVK
D&02&WRFRRUGLQDWHVWDELOL]DWLRQDFWLYLWLHVDFURVVWKH$27KH&02&FRRUGLQDWHVFLYLOPLOLWDU\+1
1*2DQG,*2DFWLRQVE\UHYLHZLQJVWDELOL]DWLRQSODQVGHYHORSLQJDQGDVVHVVLQJ02(VDQG023VDQG
HQVXULQJWKDWXQLILHGDFWLRQSDUWQHUVDOOZRUNWRZDUGVWKHVDPHJRDO
 7KURXJKWKH&02&FRPPDQGHUVLQLWLDWHFRRSHUDWLYHHIIRUWVZLWKSDUWLFLSDWLQJFLYLOLDQDJHQFLHVDQG
GHWHUPLQHZKHUHWKHLUREMHFWLYHVDQGSODQVFRPSOHPHQWRUFRQIOLFWZLWKWKRVHDJHQFLHV&RPPDQGHUVFDQ
WKHQPDWFK$UP\0DULQH&RUSVIRUFHFDSDELOLWLHVWRWKHQHHGVRIWKHVXSSRUWHGDJHQFLHV5HFRQQDLVVDQFH
DQGOLDLVRQHOHPHQWV²KHDYLO\ZHLJKWHGZLWKFLYLODIIDLUVHQJLQHHUVDQGPHGLFDOSHUVRQQHO²PD\QHHGWR
GHSOR\LPPHGLDWHO\WRGHWHUPLQHZKDWW\SHRIVXSSRUWLVUHTXLUHG2YHUDOOFRQVLVWHQWUHJXODUFRRUGLQDWLRQ
IRVWHUV WUXVW DQG PDNHV XQLW\ RI HIIRUW SRVVLEOH LQ RSHUDWLRQV ZKHUH XQLW\ RI FRPPDQG LV FKDOOHQJLQJ WR
DFKLHYH
 &RPPDQGHUV FRQVLGHU HVWDEOLVKLQJ DV QHFHVVDU\ VHSDUDWH RUJDQL]DWLRQV IRU DUHD VHFXULW\ DQG IRU
VWDELOLW\RSHUDWLRQVWRLQFUHDVHFRRUGLQDWLRQDQGHQKDQFHORFDO1*2DQGLQWHUQDWLRQDOVXSSRUW2UJDQL]LQJ
IRUFHV LQ WKLV ZD\ HQDEOHV XQLWV WDVNHG ZLWK FRQGXFWLQJ VWDELOLW\ RSHUDWLRQV WR DYRLG WKH VWLJPD RI EHLQJ
DVVRFLDWHGZLWKFRQWLQXHGDFWVRIYLROHQFHLQWKH$27KLVFDQHQKDQFHFRRSHUDWLRQ DPRQJ86DQG+1

 $730&73& 6HSWHPEHU

 -XQJOH6WDELOLW\2SHUDWLRQV

IRUFHVRU1*2DQG,*2SDUWQHUVDQGLQFUHDVHSRSXODUVXSSRUWIRUHFRQRPLFJRYHUQDQFHDQGLQIUDVWUXFWXUH
LQLWLDWLYHV

3HUVHYHUDQFH
 6WDELOLW\ RSHUDWLRQV HQWDLO $UP\0DULQH &RUSV IRUFHV HQDEOLQJ WKH VXFFHVV RI D OHJLWLPDWH +1
DXWKRULW\$FKLHYLQJWKLVHQGVWDWHRIWHQUHTXLUHVWKHSHUVHYHUDQFHWRSDUWQHUZLWK+1OHDGHUVDQGLQIOXHQFH
WKHPWRDGGUHVVWKHXQGHUO\LQJFDXVHVRILQVWDELOLW\RUUHYLVHLWVSROLFLHVWRDGGUHVVWKHFRQFHUQVRIGLVDIIHFWHG
SRUWLRQVRIWKH MXQJOHSRSXODWLRQ6WDELOLW\VXFFHVVHVDFKLHYHGE\86 IRUFHVDORQHDUHOLNHO\WREHVKRUW
OLYHG7KURXJKSHUVHYHUDQFHDQGDQDFFXUDWHXQGHUVWDQGLQJWKHVRFLHW\¶VKLVWRU\DQGFXOWXUHFRPPDQGHUV
JDLQDQDGYDQWDJHLQLGHQWLI\LQJWKHSUREOHPUHFRJQL]LQJURRWFDXVHVTXLFNO\HQJDJLQJDQGDVVLVWLQJNH\
+1OHDGHUVKLSDQGSODQQLQJDQGH[HFXWLQJVXFFHVVIXOVWDELOLW\RSHUDWLRQV

5HDVRQDEOH5HVWUDLQW
 6WDELOLW\RSHUDWLRQVJHQHUDOO\LPSRVHUHVWULFWLRQVRQ$UP\0DULQH&RUSVFRPPDQGHUV¶XVHRIIRUFH
8QOLNHRIIHQVLYHDQGGHIHQVLYHRSHUDWLRQVZKHUHFRPPDQGHUVVHHNWRDSSO\RYHUZKHOPLQJFRPEDWSRZHUDW
GHFLVLYH SRLQWV UHVWUDLQW LV HVVHQWLDO WR VXFFHVV GXULQJ VWDELOLW\ RSHUDWLRQV $UHD VHFXULW\ DQG VWDELOLW\
RSHUDWLRQVUHTXLULQJWKHXVHRIIRUFHHPSOR\FRPEDWSRZHUVHOHFWLYHO\GLVFULPLQDWHO\DQGSUHFLVHO\\HW
VWLOODWGHFLVLYH SRLQWVLQDFFRUGDQFH ZLWKDVVLJQHG PLVVLRQVDQGSUHVFULEHGOHJDODQGSROLF\OLPLWDWLRQV
&RPPDQGHUVDGMXVWFULWHULDIRUWKHXVHRIIRUFHDQGHVFDODWLRQRIIRUFHPHDVXUHVZKHQ$2VWUDQVLWLRQWR
SUHGRPLQDWHO\VWDELOLW\RSHUDWLRQV

029(0(17$1'0$1(89(50$1(89(5
 -XVW DV WKH XVH RI IRUFH LV PRUH UHVWULFWLYH GXULQJ VWDELOLW\ RSHUDWLRQV PRYHPHQW DQG PDQHXYHU
PDQHXYHULVRIWHQOLPLWHGE\UHTXLUHPHQWVWRRSHUDWHDPRQJWKHSRSXODFHDQGWKHQHHGWRUHVWRUHDVLQFHRI
QRUPDOF\WRWKH$27RUHGXFHLPSDFWVRQWKHORFDOSRSXODFHDQGEROVWHUWKHOHJLWLPDF\RIWKH+1DXWKRULW\
FRPPDQGHUVZLOOOLNHO\IDFHDGGLWLRQDOFRQVWUDLQWVPXVWGRDQGUHVWUDLQWVFDQQRWGRWKDWGLUHFWO\LPSDFW
PRYHPHQW DQG PDQHXYHUPDQHXYHU &RQVWUDLQWV PD\ FRQVLVW RI UHTXLUHPHQWV WR FRQGXFWHG PRXQWHG DQG
GLVPRXQWHGPRYHPHQWLQDQGDPRQJORFDOWUDIILFRUWRDELGHE\ORFDOWUDIILFUHJXODWLRQVDQGVSHHGOLPLWV
5HVWUDLQWV PD\ SURKLELW PRXQWHG RSHUDWLRQV GXULQJ VSHFLILF WLPHV RU LQ FHUWDLQ DUHDV $GKHULQJ WR WKHVH
OLPLWDWLRQVPD\VHHPULVN\RUFRXQWHULQWXLWLYHKRZHYHUWKH\DUHQHFHVVDU\WRUHWXUQDIUDJLOHRUIDLOLQJVWDWH
WRVWDELOLW\8OWLPDWHO\WKHJRDORIVWDELOLW\RSHUDWLRQVLVWRUHGXFHWKHQHHGIRU86IRUFHVDWDOODQGDVVXFK
LQFUHDVHGOLPLWDWLRQVRQPRYHPHQWDQGPDQHXYHUPDQHXYHURFFXUDVVWDELOLW\RSHUDWLRQVDUHVXFFHVVIXODQG
UHVSRQVLELOLWLHVWUDQVLWLRQWRWKHOHJLWLPDWHFLYLODXWKRULW\
 'XULQJMXQJOHVWDELOLW\RSHUDWLRQVFRPPDQGHUVHQVXUHWKDWWKHPRYHPHQWDQGPDQHXYHUPDQHXYHURI
PLOLWDU\IRUFHVGRHVQRWFDXVHDGGLWLRQDOKDUGVKLSVIRUWKHORFDOSRSXODFHRUGDPDJHWRLQIUDVWUXFWXUH0RYLQJ
KHDY\HTXLSPHQWDQGDUPRUHGYHKLFOHVRQMXQJOHWUDLOVDQGURDGVFDQGRVLJQLILFDQWGDPDJHRYHUWLPHWKDW
PD\LPSHGHRYHUDOOVWDELOLW\RSHUDWLRQVDQGUHTXLUHWKHFRPPLWPHQWRIDGGLWLRQDOUHVRXUFHVWRUHSDLU/2&V

,17(//,*(1&(
 -XVWDVLQWKHRIIHQVHDQGGHIHQVHLQWHOOLJHQFHDQGRSHUDWLRQVRIILFHUVLQFRRUGLQDWLRQZLWKWKHUHVWRI
WKH VWDII GHYHORS D V\QFKURQL]HG DQG LQWHJUDWHG LQIRUPDWLRQ FROOHFWLRQ SODQ WKDW VDWLVILHV WKH XQLW
FRPPDQGHU¶V LQIRUPDWLRQ UHTXLUHPHQWV +RZHYHU GXULQJ VWDELOLW\ RSHUDWLRQV WKH LQIRUPDWLRQ FROOHFWLRQ
SODQ LV LQIRUPHG E\ WKH &02& DQG PD\ EH GULYHQ E\ GDWD FROOHFWLRQ LQ VXSSRUW RI 02(V DQG 023V
,QIRUPDWLRQFROOHFWLRQGXULQJVWDELOLW\RSHUDWLRQVDOVRUHOLHVKHDYLO\RQGDWDSURYLGHGE\WKH+1JRYHUQPHQW
1*2VDQG,*2V
 :LWKLQWKHFRQVWUDLQWVRI236(&FRPPDQGHUVFRRUGLQDWHDOOVWDELOLW\RSHUDWLRQVZLWKRWKHUDJHQFLHV
DQG IRUFHV WKDW VKDUH WKH MXQJOH HQYLURQPHQW ,PSRUWDQWO\ WKH\ FRRUGLQDWH DSSURSULDWH LQIRUPDWLRQ DQG
LQWHOOLJHQFHVKDULQJZLWKSDUWLFLSDWLQJRUJDQL]DWLRQV&RPPDQGHUVZRUNZLWKLQIRUHLJQGLVFORVXUHOLPLWDWLRQV
WR IRVWHU LQIRUPDWLRQ H[FKDQJH DPRQJ 86 IRUFHV +1 DXWKRULWLHV SDUWQHU QDWLRQV 1*2V DQG ,*2V
&RPPDQGHUVSURYLGHLQIRUPDWLRQWRWKHVHSDUWQHUVWROHYHUDJHWKHLUFDSDELOLWLHVDQGDFKLHYHXQLW\RIHIIRUW
&RPPDQGHUVXVHLQIRUPDWLRQSURYLGHGE\SDUWQHURUJDQL]DWLRQVWRVKDSHVWDELOLW\RSHUDWLRQV2IWHQWKHKRVW

6HSWHPEHU $730&73& 

&KDSWHU

QDWLRQ1*2VDQG,*2VSRVVHVVIDUJUHDWHUDFFHVVWRWKHFLYLOLDQSRSXODFHDQGKDYHDZHDOWKRINQRZOHGJH
RQWKHMXQJOHHQYLURQPHQW
 2QHRIWKHPRVWYDOXDEOHPHWKRGVIRUREWDLQLQJLQWHOOLJHQFHLQVXSSRUWRIVWDELOLW\RSHUDWLRQVLVIDFH
WRIDFHHQFRXQWHUVZLWKWDUJHWHGDXGLHQFHVE\XQLWSDWUROV+80,17VSHFLDOLVWV0,62VSHFLDOLVWVDQGFLYLO
DIIDLUV WHDPV $ YDOXDEOH WHFKQLTXH PD\ EH WR FRQGXFW SHULRGLF VXUYH\V RU RSLQLRQ SROOV RI WKH FLYLOLDQ
SRSXODWLRQWRGHWHUPLQHFKDQJHVLQWKHLUSHUFHSWLRQVDQGDWWLWXGHV&RQWLQXDO$UP\0DULQH&RUSVSUHVHQFH
SURYLGHV WKH MXQJOH SRSXODWLRQ D VHQVH RI VHFXULW\ DQG DOORZV 6ROGLHUV0DULQHV WR GHYHORS D GHWDLOHG
NQRZOHGJHRIWKH³SDWWHUQVRIOLIH´LQWKHLUDVVLJQHG$2$UPHGZLWKWKLVNQRZOHGJHWKH\FDQGHWHFWWKH
DEVHQFHRIWKHQRUPDORUWKHSUHVHQFHRIWKHDEQRUPDOWKDWPLJKWLQGLFDWHDSRWHQWLDOWKUHDW

),5(6
 6WDELOLW\RSHUDWLRQVDUHFKDUDFWHUL]HGE\UHVWULFWLYH)6&0VWKDWOLPLWWKHXVHRILQGLUHFWILUHVWRSUHYHQW
XQLQWHQWLRQDOFLYLOLDQFDVXDOWLHVDQGIRVWHUDUHWXUQWRQRUPDOF\+RZHYHUXQLWVFDQHPSOR\QRQOHWKDOILUHV
VXFKDVLOOXPLQDWLRQWRHQKDQFH86RU+1IRUFHVDELOLW\WRRSHUDWHGXULQJSHULRGVRI OLPLWHG YLVLELOLW\
1RQOHWKDOGLUHFWILUHPXQLWLRQVDUHDOVRFULWLFDOGXULQJVWDELOLW\RSHUDWLRQVWRSURYLGHSROLFHZLWKJUDGXDWHG
HVFDODWLRQRIIRUFHPHDVXUHVIRUDGGUHVVLQJFULPLQDOEHKDYLRUVXFKDVORRWLQJRUULRWLQJ

6867$,10(17/2*,67,&6
 6WDELOLW\ RSHUDWLRQV PD\ UHTXLUH VXVWDLQPHQWORJLVWLFV VXSSRUW WR V\VWHPV DQG RUJDQL]DWLRQV QRW
WUDGLWLRQDOO\VXSSRUWHGE\$UP\0DULQHV&RUSVORJLVWLFLDQV7KHDELOLW\WRVXSSRUWWKHVHV\VWHPVDQGHQWLWLHV
PD\ UHTXLUH VSHFLDO DXWKRUL]DWLRQ DXWKRULWLHV OLPLWDWLRQV DQG SURFHGXUHV +RZHYHU WKLV VXSSRUW FDQ EH
LQVWUXPHQWDOLQEXLOGLQJ+1FDSDELOLW\DQGFDSDFLW\DVZHOODVVXSSRUWLQJLQWHUJRYHUQPHQWDOXQLILHGDFWLRQ
SDUWQHUVDQGRWKHUJURXSV¶DELOLWLHVWRWUDQVLWLRQDQ$2EDFNWR+1OHJLWLPDWHDXWKRULWLHV
 /LNHRIIHQVLYHRSHUDWLRQVVWDELOLW\RSHUDWLRQVLQWKHMXQJOHDUHFKDUDFWHUL]HGE\VPDOOXQLWVRSHUDWLQJ
DWNH\ORFDWLRQVDFURVVZLGHDUHDV/RFDWLRQVPD\LQFOXGHVPDOOSRSXODWLRQFHQWHUVVXFKDVYLOODJHVRUJURXSV
RIIDUPVRUFULWLFDOLQIUDVWUXFWXUHVLWHVVXFKDVEULGJHV&RPPDQGHUVGHYHORSDVXVWDLQPHQWSODQIOH[LEOH
DQGUHVSRQVLYHHQRXJKWRSURYLGHWKHVHIRUFHVZLWKWKHUHVRXUFHVQHFHVVDU\WRFRQGXFWVWDELOLW\RSHUDWLRQV
6WDELOLW\RSHUDWLRQVLQWKHMXQJOHRIWHQSODFHLQFUHDVHGGHPDQGRQWKHIROORZLQJFODVVHVRIVXSSO\
z &ODVV,8QWLOHVVHQWLDOVHUYLFHVDUHUHVWRUHG+1IRUFHV,*2VRU1*2VWKHORFDOSRSXODFHDQG
XQLILHGDFWLRQSDUWQHUVPD\UHTXLUHEXON&ODVV,VXSSRUWIURP86IRUFHV7KHGHPDQGIRUEXON
&ODVV,LVPRUHSURQRXQFHGGXULQJKXPDQLWDULDQDVVLVWDQFHPLVVLRQV
z &ODVV,,,,WPD\EHQHFHVVDU\WRVXSSRUW+1IRUFHVZLWKSHWUROHXPRLOVDQGOXEULFDQWVXQWLOWKHLU
VXVWDLQPHQWDQGGLVWULEXWLRQV\VWHPVUHWXUQWRRSHUDWLRQDOFDSDFLW\6XVWDLQPHQWSODQQHUVHQVXUH
IXHOVSURYLGHGDUHFRPSDWLEOHZLWK+1HTXLSPHQW
z &ODVV,9&RQVWUXFWLRQPDWHULDODQGEDUULHUVDUHXVHGWRVXSSRUWLQIUDVWUXFWXUHUHSDLUDQGSK\VLFDO
VHFXULW\RUVXUYLYDELOLW\LPSURYHPHQWVWR+1VHFXULW\IRUFHLQVWDOODWLRQV
z &ODVV9,,,'HSHQGLQJRQWKHFDSDELOLW\DQGFDSDFLW\RIWKHORFDOKHDOWKFDUHV\VWHPFRPPDQGHUV
SODQIRUDQLQFUHDVHGGHPDQGIRUPHGLFDOVXSSOLHVWRWUHDWERWK+1IRUFHVDQGWKHORFDOSRSXODFH
%HFDXVHWKHDUHDPD\EHZLWKRXWHVVHQWLDOVHUYLFHVWKHQHHGIRUPHGLFDWLRQDQGVXSSOLHVWRWUHDW
WURSLFDODQGHQGHPLFGLVHDVHVZLOOEHJUHDW'LVHDVHVVXFKDVPDODULDDQGG\VHQWHU\OLNHO\RFFXU
LQWURSLFDODUHDVZLWKSRRUVDQLWDWLRQDQGFRPPDQGHUVPXVWSODQIRUPHGLFDWLRQWRERWKSUHYHQW
DQGWUHDWRXWEUHDNVDPRQJWKHLUIRUFHV&RPPDQGHUVFRRUGLQDWHZLWKWKH+1JRYHUQPHQW1*2V
DQG,*2VWRGHWHUPLQHWKHLUFDSDELOLW\WRDFTXLUHPHGLFDWLRQWRWUHDWRXWEUHDNVDPRQJWKHORFDO
SRSXODWLRQ
 0HGLFDO VXSSRUW WR VWDELOLW\ RSHUDWLRQV DQWLFLSDWHV SURYLGLQJ PHGLFDO FDUH WR +1 IRUFHV VHFXULW\
SHUVRQQHODQGWKHMXQJOHSRSXODFHZKHQ+1FDSDELOLWLHVIDLO8QOLNH$UP\0DULQH&RUSVIRUFHV+1IRUFHV
DQGFLYLOLDQVGR QRWJHQHUDOO\HYDFXDWHRXWVLGHWKHWKHDWHUDQGGHSHQGLQJRQWKHDYDLODELOLW\RIUHVRXUFHV
PD\QRWEHHOLJLEOHIRUWUHDWPHQWDW86IDFLOLWLHVLQWKHDWHU&RPPDQGHUVOHYHUDJH1*2V,*2VDQGWKH
+1 JRYHUQPHQW WR GHYHORS DQG VXSSRUW D PHGLFDO WUHDWPHQW DQG HYDFXDWLRQ SODQ IRU WKH ORFDO SRSXODFH
2IWHQ86IRUFHVVXSSRUWWKLVSODQE\SURYLGLQJERWKVWDQGDUGDQGQRQVWDQGDUGDLUDQGJURXQGSODWIRUPVIRU
SDWLHQWWUDQVSRUWDWLRQDQGHYDFXDWLRQ

 $730&73& 6HSWHPEHU

 -XQJOH6WDELOLW\2SHUDWLRQV

3527(&7,21
 3ULRULWLHVIRUSURWHFWLRQRIWHQFKDQJHDVWKHIRFXVRIGHFLVLYHDFWLRQVKLIWVIURPODUJHVFDOHFRPEDWWR
VWDELOLW\RSHUDWLRQV&RPPDQGHUVFRQWLQXHWRLGHQWLI\WKUHDWVDQGKD]DUGVFULWLFDODVVHWVYXOQHUDELOLWLHVDQG
ULVN KRZHYHU FULWLFDO DVVHWV WKUHDWV DQG YXOQHUDELOLWLHV XVXDOO\ GLIIHU IURP GXULQJ ODUJHVFDOH FRPEDW
RSHUDWLRQV&ULWLFDODVVHWVUHTXLULQJSURWHFWLRQGXULQJVWDELOLW\RSHUDWLRQVFRQVLVWRIFULWLFDO+1LQIUDVWUXFWXUH
VXFK DV EULGJHV SRUWV ZDWHU WUHDWPHQW SODQWV SRZHU SODQWV DQG KRVSLWDOV +1 JRYHUQPHQW DQG VHFXULW\
IDFLOLWLHVDQGHFRQRPLFFHQWHUVVXFKDVPDUNHWV1RUPDOO\WKHWKUHDWGXULQJVWDELOLW\RSHUDWLRQVFRQVLVWVRI
LUUHJXODUHQHP\IRUFHVLQFOXGLQJJXHUULOODVDQGLQVXUJHQWV86IRUFHVRIWHQDVVXPHDQLQFUHDVHGOHYHORI
YXOQHUDELOLW\GXULQJVWDELOLW\RSHUDWLRQV$V6ROGLHUV0DULQHVRSHUDWHPRUHFORVHO\ZLWKDQGDPRQJWKHORFDO
SRSXODFHWKH\EHFRPHPRUHYXOQHUDEOHWRDWWDFNE\LQVXUJHQWVRUJXHUULOODVKLGLQJDPRQJWKHSRSXODWLRQ
$VWKH\SDUWQHUPRUHFORVHO\ZLWK+1VHFXULW\IRUFHVWKHULVNRIDIRUHLJQVHFXULW\IRUFHVDWWDFNLQFUHDVHV
&RPPDQGHUVUHFRJQL]HWKLVFKDQJLQJQDWXUHRISURWHFWLRQUHTXLUHPHQWVGXULQJVWDELOLW\RSHUDWLRQVDQGDSSO\
DOOWKH HOHPHQWVRIFRPEDWSRZHUWR PLWLJDWH ULVNDQGSURWHFW 86IRUFHV IRUHLJQSDUWQHUVDQGWKH ORFDO
SRSXODFH6HH$73IRUPRUHLQIRUPDWLRQRIIRUHLJQVHFXULW\IRUFHV¶DWWDFNSUHYHQWLRQDQGUHVSRQVH
 -XQJOHVWDELOLW\RSHUDWLRQVSUHVHQWXQLTXHSURWHFWLRQFKDOOHQJHVDVVPDOOXQLWVWKDWZHUHRQFHPRELOH
DUHQRZGLVSHUVHGDWNH\ORFDWLRQVWKURXJKRXWWKH$26XFKIRUFHVPD\FRQVLVWRIFLYLODIIDLUVWHDPVVHFXULW\
IRUFHDVVLVWDQFHXQLWVRUSURYLQFLDOUHFRQVWUXFWLRQWHDPVWKDWGRQRWSRVVHVVDQLQKHUHQWFDSDELOLW\WRSURWHFW
WKHPVHOYHVIURPVLJQLILFDQWWKUHDWV$VVXFKFRPPDQGHUVDOORFDWHDYDLODEOHVHFXULW\IRUFHVDQGDGGLWLRQDO
UHVRXUFHVWRSURWHFWWKRVHIRUFHV&RPPDQGHUVDOVRHQVXUHWKDWXQLWVGLVSHUVHGDFURVVWKHLU$2KDYHDGHTXDWH
WUDQVSRUWDWLRQDVVHWVDYDLODEOHIRUUDSLGHYDFXDWLRQRUUHLQIRUFHPHQW'XULQJMXQJOHVWDELOLW\RSHUDWLRQVWKLV
UDSLGPRYHPHQWRIIRUFHVLVEHVWDFFRPSOLVKHGE\DYLDWLRQDVVHWV
 7KHWKUHDWRIHQGHPLFWURSLFDOGLVHDVHVVXFKDVPDODULDDQGGLVHDVHVUHODWHGWRSRRUVDQLWDWLRQUHTXLUH
FRPPDQGHUV WR ZRUN FORVHO\ ZLWK SUHYHQWLYH PHGLFLQH VSHFLDOLVWV WR SUHYHQW RXWEUHDNV DQG UHVSRQG
DFFRUGLQJO\ZKHQWKH\RFFXU%HFDXVHHVVHQWLDOVHUYLFHVDUHRIWHQQRQH[LVWHQWWKHORFDOSRSXODFHZLOOOLNHO\
ODFNFOHDQZDWHUDQGVHZDJHUXQRIIPD\EHFRPHDSUREOHP7KLVLQFUHDVHVWKHSUREDELOLW\RIDQRXWEUHDNRI
VDQLWDWLRQUHODWHGGLVHDVHVVXFKDVG\VHQWHU\$V6ROGLHUV0DULQHVRSHUDWHLQDQGDPRQJWKHSRSXODWLRQWKH\
DUHDWDJUHDWHUULVNRIFRQWUDFWLQJLOOQHVVHV&RPPDQGHUVSODQIRUWKLVE\UHTXLVLWLRQLQJDGGLWLRQDOPHGLFDWLRQ
WR WUHDW MXQJOH GLVHDVHV DQG E\ DGRSWLQJ SUHYHQWLYH PHGLFLQH SUDFWLFHV WR SUHYHQW RXWEUHDNV DW VLWHV DQG
ORFDWLRQV XQGHU 86 FRQWURO 3UHYHQWLYH PHGLFLQH VSHFLDOLVWV LQVSHFW IL[HG VLWHV IUHTXHQWHG E\
6ROGLHUV0DULQHV WR LGHQWLI\ VDQLWDWLRQ LVVXHV DQG KHOS XQLWV DGRSW PHDVXUHV WR SUHYHQW WKH RXWEUHDN DQG
VSUHDGRIGLVHDVH

6HFXULW\DQG3URWHFWLRQ0HDVXUHV
 (PSKDVL]LQJVHFXULW\DQGSURWHFWLRQPHDVXUHVGRHVQRWPHDQLVRODWLQJ6ROGLHUV0DULQHVIURPFRQWDFW
ZLWKWKHMXQJOHSRSXODWLRQ,QVWHDGFRPPDQGHUVDGDSWDQGLPSURYHVHFXULW\PHDVXUHVWRUHIOHFWWKHFKDQJLQJ
QDWXUHRIRSHUDWLRQV7KH\EDODQFHWKHLQKHUHQWULVNRIZRUNLQJZLWKDQGDPRQJWKHSRSXODFHDJDLQVWWKHULVN
RIIXUWKHUGHVWDELOL]DWLRQLIWKH\IDLOWRDFFRPSOLVKWKHLUPLVVLRQ7RGRWKLVFRPPDQGHUVDGMXVWSK\VLFDO
VHFXULW\DQGVXUYLYDELOLW\PHDVXUHVDVZHOODVHQVXUHXQLWVDGDSWWKHLUORFDOVHFXULW\SURFHGXUHVWRSURWHFW
6ROGLHUV0DULQHV H[SRVHG WR WKUHDWV DV WKH\ ZRUN LQ DQG DPRQJ WKH SRSXODFH &RPPDQGHUV LPSURYH
VXUYLYDELOLW\DWVLWHVZKHUH6ROGLHUV0DULQHVIUHTXHQW7KLVLQFOXGHVQRWRQO\ELOOHWVDQGRXWSRVWVEXW+1
VHFXULW\IRUFHFDPSVDQGVLWHV6XFKORFDWLRQVVKRXOGEHKDUGHQHGDQGIRUWLILHGWRSURWHFW86IRUFHVIURP
XQH[SHFWHGDWWDFN&RPPDQGHUVDOVRLPSOHPHQWDFFHVVFRQWUROPHDVXUHVWKDWSUHYHQWXQDXWKRUL]HGSHUVRQV
IURPHQWHULQJVHQVLWLYHDUHDVZKHUHWKH\FRXOGDWWDFNXQVXVSHFWLQJ6ROGLHUV0DULQHV

3URWHFWLQJ&LYLOLDQVDQG&ULWLFDO,QIUDVWUXFWXUH
 'XULQJVWDELOLW\RSHUDWLRQV$UP\0DULQH&RUSVIRUFHVRIWHQSURYLGHVHFXULW\IRU1*2V,*2VXQLILHG
DFWLRQ SDUWQHUV DQG WKH ORFDO SRSXODFH 3URYLGLQJ VHFXULW\ WR XQLILHG DFWLRQ SDUWQHUV +1 JRYHUQPHQW
SHUVRQQHO1*2VDQG,*2VDOORZVWKHVHDJHQFLHVWRIRFXVWKHLUHIIRUWVDQGFDSDELOLWLHVRQWKHVWDELOL]DWLRQ
WDVNVWKH\DUHXQLTXHO\TXDOLILHGWRVXSSRUW
 &RPPDQGHUV SURWHFW WKH ORFDO MXQJOH SRSXODWLRQ E\ SHUIRUPLQJ DUHD VHFXULW\ WR GHIHDW DWWDFNV E\
LQVXUJHQWVRUJXHUULOODVDQGSROLFHRSHUDWLRQVWRSURWHFWFLYLOLDQVIURPODZOHVVQHVVULRWLQJDQGORRWLQJ3ROLFH
RSHUDWLRQVDUHEHVWDFFRPSOLVKHGE\ZRUNLQJZLWKORFDOSROLFHDQG+1VHFXULW\IRUFHVWRHVWDEOLVKRUGHU,I

6HSWHPEHU $730&73& 

&KDSWHU

D ORFDO SROLFH IRUFH LV XQDYDLODEOH FRPPDQGHUV SUHSDUH WR SURYLGH WKLV HVVHQWLDO VHUYLFH XQWLO +1 SROLFH
KDYLQJ WUDLQLQJ DQG HTXLSPHQW WR PDLQWDLQ RUGHU 0LOLWDU\ SROLFH DUH PDQQHG WUDLQHG DQG HTXLSSHG WR
SURYLGH SROLFLQJ H[SHUWLVH FRPPDQGHUV WDVNHG ZLWK UHVWRULQJ ODZ DQG RUGHU W\SLFDOO\ UHTXHVW DGGLWLRQDO
PLOLWDU\SROLFHIRUFHV
 &RPPDQGHUVSURWHFWFULWLFDOLQIUDVWUXFWXUHE\H[SDQGLQJWKHXVHRIWKH&$/DQG'$/WRLGHQWLI\DQG
SURWHFWDVVHWVGHHPHGYLWDOWRVWDELOL]DWLRQHIIRUWV'XULQJVWDELOLW\RSHUDWLRQVLQWKHMXQJOHFULWLFDODVVHWV
PD\LQFOXGHEULGJHVOHYLHVKRVSLWDOVSROLFHVWDWLRQVJRYHUQPHQWEXLOGLQJVZDWHUWUHDWPHQWSODQWVSRZHU
VWDWLRQVDQGPDUNHWV:KLOHWKHWKUHDWRIDLUDQGPLVVLOHDWWDFNPD\EHPLQLPDOFRPPDQGHUVXVHWKH&$/
DQG'$/FRQFHSWWRDOORFDWHVHFXULW\IRUFHVVXFKDVPLOLWDU\SROLFHWRSURWHFWDVVHWVIURPVDERWDJHRUJURXQG
DWWDFNE\JXHUULOODVRULQVXUJHQWV7KH\DOVRZRUNZLWK+1DXWKRULWLHVDQGVHFXULW\IRUFHVWRLPSURYHSK\VLFDO
VHFXULW\DQGVXUYLYDELOLW\PHDVXUHVDWWKHVHVLWHV

 $730&73& 6HSWHPEHU

 &KDSWHU
7UDLQLQJIRU-XQJOH2SHUDWLRQV

7UDLQLQJDQGSUHSDUDWLRQIRUMXQJOHRSHUDWLRQVFDQLPSURYHHIIHFWLYHQHVVFRQILGHQFH
DQG VXUYLYDELOLW\ IRU 6ROGLHUV0DULQHV WDVNHG ZLWK ZRUNLQJ LQ WKLV DGYHUVH
HQYLURQPHQW7KLVFKDSWHUSURYLGHVJXLGDQFHIRUGHYHORSLQJLQGLYLGXDODQGFROOHFWLYH
WUDLQLQJVWUDWHJLHVWRSUHSDUHXQLWVIRUMXQJOHRSHUDWLRQV7KHMXQJOH¶VGHQVHYHJHWDWLRQ
KLJKKHDWDQGH[FHVVLYHUDLQIDOOUHTXLUHXQLTXHDGDSWDWLRQVWRPHWKRGVIRUFDPRXIODJH
DQGFRQFHDOPHQWQDYLJDWLRQEDVLFVKHOWHUVXUYLYDODQGPRYHPHQW+RZHYHUWKURXJK
D FRPSUHKHQVLYH WUDLQLQJ SODQ 6ROGLHUV0DULQHV FDQ PLWLJDWH WKHVH FKDOOHQJHV DQG
SHUIRUPZLWKFRQILGHQFHLQDQRWKHUZLVHGDXQWLQJHQYLURQPHQW

75$,1,1*$'$37(')25-81*/(23(5$7,216
 :HOOWUDLQHGWURRSVDQGOHDGHUVFDQDGDSWTXLFNO\WRWKHMXQJOH¶VSHFXOLDUFRQGLWLRQVDQGRIWHQRQO\
UHTXLUH WKH EDUH QHFHVVLWLHV WR EH VXFFHVVIXO :KLOH HTXLSPHQW DQG GRFWULQH FDQ EH PRGLILHG WR VXLW WKH
HQYLURQPHQWPXFKZLOOGHSHQGRQKRZZHOOWURRSVDQGOHDGHUVKDYHPDVWHUHGWKHLULQGLYLGXDODQGFROOHFWLYH
WUDLQLQJ
 $FRPPDQGHUPXVWDQVZHUVRPHRUDOORIWKHIROORZLQJTXHVWLRQVZKHQDXQLWLVDOHUWHGIRURSHUDWLRQV
LQDMXQJOHHQYLURQPHQW
z :KHUHZLOOWKHXQLWWUDLQRURSHUDWH"
z :KDWDUHWKHFOLPDWLFDQGWHUUDLQFRQGLWLRQVRIWKH$2"
z +RZPXFKWLPHGRHVWKHXQLWKDYHWRSUHSDUH"
z :KDWDYDLODEOHWUDLQLQJDUHDVKDYHFOLPDWHDQGWHUUDLQUHVHPEOLQJWKH$2"
z :KDWW\SHRIRSHUDWLRQVZLOOWURRSVFRQGXFW"
z :LOOWKHXQLWWDNHLWVRZQHTXLSPHQW"
z 'RHVDQ\RIWKHXQLW¶VHTXLSPHQWUHTXLUHPRGLILFDWLRQLQFOXGLQJFDPRXIODJHSDLQWLQJ"
z :KDWVSHFLDOHTXLSPHQWGRHVWKHXQLWUHTXLUH"
z :KDWVSHFLDOPDLQWHQDQFHLVUHTXLUHGIRUZHDSRQVDQGHTXLSPHQWEHIRUHGHSOR\PHQWWRDMXQJOH
HQYLURQPHQW"
z 'RHVWKHXQLWKDYHDQ\MXQJOHZDUIDUHLQVWUXFWRUVWURRSVZLWKMXQJOHH[SHULHQFHRUOLQJXLVWV"
z :KDWWUDLQLQJDVVLVWDQFHLVDYDLODEOH"2XWVLGHLQVWUXFWRUV"7UDLQLQJDLGV"
z 'RHVKLJKHUKHDGTXDUWHUVKDYHVSHFLDO623VIRUMXQJOHZDUIDUH"
z :KDWLQIRUPDWLRQLVDYDLODEOHDERXWORFDOFLYLOLDQVDQGDOOLHGIRUFHVLQWKH$2"
z :KDWDUHWKHWUDLQLQJUHTXLUHPHQWVLQGLYLGXDODQGFROOHFWLYHIRUWKHVSHFLILFFRPEDWDQWFRPPDQG
WKHXQLWLVGHSOR\LQJLQWR"
z :KDWFKDQJHVWRWKHXQLW¶VPLVVLRQHVVHQWLDOWDVNOLVWQHHGWREHPDGHLIDQ\"

 8QLWVFRPPLWWHGWRMXQJOHRSHUDWLRQVPD\KDYHWRILJKWDVVRRQDVWKH\DUULYHLQWKH$2&RPPDQGHUV
PXVW PDNH WKH EHVW XVH RI WKH SUHSDUDWLRQ WLPH DYDLODEOH 0HDVXUHV ZKLFK FRPPDQGHUV VKRXOG FRQVLGHU
LQFOXGH²
z 0DNLQJXVHRIWLPHLQJDUULVRQ&HUWDLQMXQJOHVXEMHFWVFDQEHWDXJKWXVLQJFODVVURRPLQVWUXFWLRQ
7KLVWUDLQLQJVKRXOGEHJLQDVVRRQDVSRVVLEOHVRWKDWWURRSVFDQGHYRWHWLPHLQMXQJOHWUDLQLQJ
DUHDVWRPRUHDGYDQFHGWHFKQLTXHV
z 0DNLQJXVHRIORFDOWUDLQLQJDUHDV$OWKRXJKWKHVHWUDLQLQJDUHDVPD\QRWUHVHPEOHMXQJOHWHUUDLQ
VRPHMXQJOHWHFKQLTXHVFDQEHLQWURGXFHGLQWKHP$XQLWFDQH[SDQGRQWKLVEDVHWUDLQLQJZKHQ

6HSWHPEHU $730&73& 

&KDSWHU

LW GHSOR\VWRLWVMXQJOHWUDLQLQJRURSHUDWLRQDODUHDV,QDGGLWLRQSK\VLFDOWUDLQLQJVKRXOGEHJLQLQ
WKHORFDOWUDLQLQJDUHDDVHDUO\DVSRVVLEOHEHIRUHGHSOR\PHQW
z ,QWHJUDWLQJLQGLYLGXDOWUDLQLQJLQWRXQLWWUDLQLQJH[HUFLVHV5DWKHUWKDQGHYRWHILHOGWUDLQLQJWLPH
WRWKHLQGLYLGXDOVNLOOVUHTXLUHGWROLYHLQWKHMXQJOHDXQLWLQWURGXFHVWKHVHVNLOOVHDUO\LQFODVVHV
DQGWKHQSUDFWLFHVWKHPGXULQJXQLWWUDLQLQJH[HUFLVHV
 &RPPDQGHUVILUVWDVVHVVWKHDVVLJQHGPLVVLRQHQYLURQPHQWXQLWUHDGLQHVVDQGWLPHDYDLODEOH7KHQ
WKH\GHYHORSDWUDLQLQJSURJUDPWREULQJWKHXQLWWRDOHYHOZKHUHLWLVIXOO\FDSDEOHRIVXFFHVVIXOO\RSHUDWLQJ
LQKDUVKMXQJOHFRQGLWLRQV,QGLYLGXDOWUDLQLQJDQGVXUYLYDOVNLOOVDUHWKHIRXQGDWLRQRIHIIHFWLYHFROOHFWLYH
WUDLQLQJ DQG XOWLPDWHO\ VXFFHVVIXO VPDOO XQLW RSHUDWLRQV LQ WKH MXQJOH 7KH WUDLQLQJ SULRULWLHV OLVWHG LQ
SDUDJUDSKVWKURXJKDUHRQO\DJXLGHDQGPXVWEHWDLORUHGIRUVSHFLILFFLUFXPVWDQFHVWKHDWHUVDQG
UHTXLUHPHQWV

&$028)/$*($1'&21&($/0(17
 8QLWV FDQ GLYLGH FDPRXIODJH DQG FRQFHDOPHQW WUDLQLQJ LQWR FRQFHDOPHQW IURP WKH JURXQG DQG
FRQFHDOPHQWIURPWKHDLU&RPPDQGHUVSD\SDUWLFXODUDWWHQWLRQWRPRYHPHQWFRORUVKDGRZDQGGHFHSWLRQ
&DPRXIODJHDQGFRQFHDOPHQWDUHHTXDOO\LPSRUWDQWIRUVXVWDLQPHQWWURRSV)RUDPRUHGHWDLOHGGLVFXVVLRQ
RQFDPRXIODJHDQGFRQFHDOPHQWWHFKQLTXHVUHIHUWR$730&73&

(48,30(1723(5$72575$,1,1*
 0RWRUYHKLFOHRSHUDWRUVUHTXLUHH[WHQVLYHRIIURDGGULYHU¶VWUDLQLQJWRHIIHFWLYHO\RSHUDWHQDYLJDWHWKH
MXQJOH¶VXQLPSURYHGURDGVXQGHUDGYHUVHZHDWKHUFRQGLWLRQV5HDOLVWLFGULYHUWUDLQLQJH[HUFLVHVDUHORQJDQG
DUGXRXVWRH[SRVHYHKLFOHRSHUDWRUVWRWKHULJRUVRIWKHMXQJOHDVZHOODVWRWKHHIIHFWVRIIDWLJXH7KRURXJK
GULYHUWUDLQLQJLQFOXGHVJDLQLQJSURILFLHQF\LQPXGG\FRQGLWLRQVUHVWULFWHGWHUUDLQDQGIRUGLQJ LGHQWLI\LQJ
RSWLPDOURXWHVDURXQGREVWDFOHV QDYLJDWLQJVORSHVDQGPDQDJLQJVHOIUHFRYHU\DQGOLNHUHFRYHU\PHWKRGV
 )OLJKWRSHUDWLRQVLQWKHMXQJOHHQYLURQPHQWUHTXLUHVSHFLDOL]HGHQYLURQPHQWDOWUDLQLQJ7KHGHPDQGLQJ
WHUUDLQRIVRPHMXQJOHVOHDGVDYLDWRUVWRRYHUO\UHO\RQHOHFWURQLFQDYLJDWLRQHTXLSPHQW7KHODFNRIRSHQ
DUHDV LQFUHDVHV WKH SUREDELOLW\ RI GLWFKLQJ LQ DUHDV RI GHQVH YHJHWDWLRQ 7KH KRW DQG KXPLG FRQGLWLRQV
FRPELQHGZLWKWKH PRXQWDLQVIRXQGLQVRPHMXQJOHVPDNHSRZHUPDQDJHPHQWDQGSUHPLVVLRQSODQQLQJ
HVSHFLDOO\ LPSRUWDQW WR PLVVLRQ VXFFHVV DQG ULVN PDQDJHPHQW 3LORWV DQG FUHZ WUDLQ ZLWK H[WUDFWLRQ
HTXLSPHQWVXFKDVWKHMXQJOHSHQHWUDWRUWKDWWKH\ZLOOXVHZKHQGHSOR\HG

6859,9$/(9$6,21$1'(6&$3(
 7UDLQLQJD6ROGLHU0DULQHWRVXUYLYHHYDGHDQGHVFDSHLQWKHMXQJOHLPSURYHVFRQILGHQFHPRUDOH
DQGWKHOLNHOLKRRGIULHQGO\IRUFHVFDQUHFRYHUWKHP%HFDXVHMXQJOHRSHUDWLRQVDUHW\SLFDOO\FRQGXFWHGE\
VPDOOXQLWVRSHUDWLQJDFURVVODUJHDUHDVWKHULVNRIEHFRPLQJLVRODWHGRUFDSWXUHGE\WKHHQHP\LQFUHDVHV
VLJQLILFDQWO\)XUWKHUVPDOOXQLWVRSHUDWLQJIRUSURORQJHGSHULRGVDZD\IURPVXVWDLQPHQWEDVHVUHTXLUHWKH
DELOLW\ WR VXUYLYH LQ WKH MXQJOH7KHVH IRUFHV UHTXLUH WUDLQLQJ RQ MXQJOH ILHOG FUDIW WKH DELOLW\ WR LGHQWLI\
SURFXUH DQG SUHSDUH LQGLJHQRXV VRXUFHV RI IRRG DQG ILUVW DLG WHFKQLTXHV IRU FRPPRQ MXQJOH GLVHDVHV
$730&53 1773 $)733  FRQWDLQV WHFKQLTXHV RQ VXUYLYDO HYDVLRQ DQG
HVFDSHLQWKHMXQJOHDQG$73FRQWDLQVJHQHUDOLQIRUPDWLRQRQVXUYLYDOWHFKQLTXHV

:$7(56859,9$/
 6ZLPPLQJDQGZDWHUVXUYLYDOWHFKQLTXHVDUHYLWDOVNLOOVLQWKHMXQJOHHQYLURQPHQW -XQJOHVFRQWDLQ
FRXQWOHVVULYHUVDQGVWUHDPVDQGWKHIHZEULGJHVDYDLODEOHPD\QRWEHORFDWHGLQDUHDVWKDWVXSSRUWWKHVFKHPH
RIPDQHXYHU6ROGLHUVDQG0DULQHVZLOOKDYHWRFURVVWKHVHOLQHDUREVWDFOHVHLWKHUE\IRUGLQJVZLPPLQJRU
FRQVWUXFWLQJURSHEULGJHV7KLVUHTXLUHVDWDPLQLPXPEDVLFZDWHUVXUYLYDOVNLOOV:DWHUVXUYLYDOWUDLQLQJLV
RXWOLQHG LQ 7&  0DULQHV UHIHUHQFH 0&53 % $YLDWRUV DQG WKRVH URXWLQHO\ FRQGXFWLQJ IOLJKW
RSHUDWLRQVLQWKHMXQJOHVKRXOGDOVREHFXUUHQWDQGTXDOLILHGRQDLUFUDIWZDWHUHJUHVVVNLOOVHTXLSPHQWDQG
SURFHGXUHV

 $730&73& 6HSWHPEHU

 7UDLQLQJIRU-XQJOH2SHUDWLRQV

/$1'1$9,*$7,21
 /DQGQDYLJDWLRQRIWHQSURYHVFKDOOHQJLQJLQMXQJOHUHJLRQVGXHWRWKHOLPLWHGYLVLELOLW\FRPSOH[LW\RI
WKH WHUUDLQ DQG GHJUDGHG VWDWXV RI *36V DQG DXWRPDWHG EDWWOH FRPPDQG V\VWHPV %HFDXVH RI WKLV
6ROGLHUV0DULQHVPD\KDYHWRUHO\RQWUDGLWLRQDOQDYLJDWLRQPHWKRGVVXFKDVGHDGUHFNRQLQJRUWKHXVHRI
DWWDFNSRLQWV6XFKPHWKRGVW\SLFDOO\UHTXLUHSURILFLHQF\ZLWKDFRPSDVVDPDSDQGSDFHFRXQW,QMXQJOHV
ZLWKRXWVLJQLILFDQWWHUUDLQIHDWXUHVWURRSVPXVWUHO\RQWKHLUFRPSDVVDQGSDFHFRXQWWRGHDGUHFNRQWRWKHLU
REMHFWLYH$OWKRXJKVORZWKLVPHWKRGRIODQGQDYLJDWLRQLVRIWHQWKHRQO\RSWLRQLQDUHDVZLWKRXWUHOLDEOH
ULYHUVVWUHDPVRUPRXQWDLQV:KHQWKHVHIHDWXUHVH[LVW6ROGLHUV0DULQHVFDQXVHDWWDFNSRLQWVWRLGHQWLI\
WKHLU REMHFWLYH E\ UHIHUHQFLQJ DGMDFHQW WHUUDLQ IHDWXUHV 6HH $SSHQGL[ $ IRU PRUH LQIRUPDWLRQ RQ ODQG
QDYLJDWLRQ6HH7&IRUGHWDLOHGWHFKQLTXHVIRUODQGQDYLJDWLRQ

(48,30(1775$,1,1*
 %HFDXVHWKHMXQJOHHQYLURQPHQWDIIHFWVQHDUO\DOOPLOLWDU\HTXLSPHQW6ROGLHUV0DULQHVWUDLQRQWKH
SURSHURSHUDWLRQLQVSHFWLRQDQGPDLQWHQDQFHRIPLVVLRQHVVHQWLDOHTXLSPHQW(TXLSPHQWWUDLQLQJIRFXVHG
IRUDMXQJOHHQYLURQPHQWLQFOXGHV²
z 7KHHIIHFWVRIKHDWDQGKXPLGLW\RQHTXLSPHQW
z (IILFLHQWRSHUDWLRQRIWKHHTXLSPHQWZLWKLQWKHOLPLWVLPSRVHGE\WKHHQYLURQPHQW
z $SSURSULDWHSUHYHQWLYHPDLQWHQDQFHSURFHGXUHVDQGDGMXVWPHQWVWRPDLQWHQDQFHUHTXLUHGE\WKH
HQYLURQPHQW7KHDSSURSULDWHHTXLSPHQWWHFKQLFDOPDQXDORUOXEULFDWLRQRUGHUSURYLGHVVSHFLILF
LQIRUPDWLRQFRQFHUQLQJKRWFOLPDWHRSHUDWLRQVDQGPDLQWHQDQFH
z %'$5RSHUDWLRQVLQWKHMXQJOH

&%5175$,1,1*
 7UDLQLQJIRU&%51HYHQWVLQDMXQJOHW\SLFDOO\LQYROYHVWKHSURWHFWLYHJHDUZRUQE\6ROGLHUV0DULQHV
:HDULQJ SURWHFWLYH FORWKLQJ LQGLYLGXDO ERG\ DUPRU DQG SURWHFWLYH PDVNV LQ WKH MXQJOH HQYLURQPHQW LV
XQFRPIRUWDEOH LQFUHDVHV IDWLJXH DQG UHGXFHV FRPEDW HIIHFWLYHQHVV 7URRSV VKRXOG QRW SDUWLFLSDWH LQ
VWUHQXRXV DFWLYLW\ ZKLOH ZHDULQJ SURWHFWLYH FORWKLQJ XQWLO WKH\ DUH DFFOLPDWL]HG 7UDLQLQJ LQ 0233 JHDU
VKRXOGEHFRPHSURJUHVVLYHO\PRUHVWUHQXRXVRYHUWLPH&RPPDQGHUVLPSOHPHQWFRQWUROVWRUHGXFHWKHULVN
RIKHDWLQMXULHVDQGGHK\GUDWLRQGXULQJWUDLQLQJFRQGXFWHGLQ0233JHDU&RPPDQGHUVFDQDGMXVWWUDLQLQJ
LQDFFRUGDQFHZLWK7DEOHRQSDJHWRKHOSSUHYHQWKHDWLQMXULHVDQGGHK\GUDWLRQ

-81*/(),(/'&5$)7
 )ROORZLQJ D VKRUW SHULRG RI FODVVURRP LQVWUXFWLRQ WURRSV VKRXOG SUDFWLFH MXQJOH ILHOG FUDIW XQGHU
FRQGLWLRQVVLPLODUWRWKRVHXQGHUZKLFKWKH\ZLOORSHUDWHZKHQGHSOR\HG&RPPDQGHUVFDQLQFRUSRUDWHWKLV
WUDLQLQJLQWRRWKHUXQLWWUDLQLQJHYHQWV6XEMHFWVWRVWUHVVLQFOXGH²
z +HDWLQMXU\SUHYHQWLRQ
z 6XUYLYDO
z )LUVWDLG
z +HDOWKK\JLHQHDQGILHOGVDQLWDWLRQ
z 3URSHUZHDURIXQLIRUPVDQGLQGLYLGXDOSURWHFWLYHHTXLSPHQW
z &RQVWUXFWLRQRIKDVW\VKHOWHUV
z 3UHYHQWLRQDQGWUHDWPHQWRIVQDNHDQGLQVHFWELWHV

 'XULQJ ILHOG FUDIW WUDLQLQJ XQLWV PLQLPL]H XVH RI JDUULVRQ IDFLOLWLHV 7UDQVSRUWDWLRQ XQLWV GHOLYHU
VXSSOLHVWRWKHILHOGUDWKHUWKDQWKHWUDLQLQJXQLWUHWXUQLQJWRWKHUHDUIRUWKHP7URRSVOHDUQWROLYHZLWKRXW
XQQHFHVVDU\SHUVRQDOFRPIRUWV
 7URRSVIDVKLRQVKHOWHUVZKHQWKHWDFWLFDOVLWXDWLRQSHUPLWV7KH6ROGLHU0DULQHFDQXVHDSRQFKRDVD
URRIIRUWKHVKHOWHU,WUHGXFHVWKHQHHGIRUH[WHQVLYHIROLDJHIRUFDPRXIODJHDQGSURYLGHVSURWHFWLRQIURPWKH
HOHPHQWV+RZHYHUWURRSVVWLOOQHHGWRDSSO\QDWXUDOFDPRXIODJHWREUHDNXSWKHRXWOLQHRIWKHSRQFKRDQG

6HSWHPEHU $730&73& 

&KDSWHU

UHGXFHWKHJODUHRIDZHWSRQFKR)LJXUHGHSLFWVYDULRXVWHFKQLTXHVIRUFRQVWUXFWLQJDKDVW\VKHOWHUZLWK
DSRQFKR

)LJXUH3RQFKRVKHOWHUV

0(',&$/75$,1,1*&216,'(5$7,216
 7KHXQLWVXUJHRQFDQSURYLGHYDOXDEOHLQIRUPDWLRQRQWKHPHGLFDOLPSOLFDWLRQVRIRSHUDWLRQVLQWKH
MXQJOH0HGLFDOWUDLQLQJVKRXOGLQFOXGHSUHYHQWLYHPHGLFLQHFRQFHSWVHVVHQWLDOWRNHHSLQJQRQEDWWOHLQMXULHV
WRDPLQLPXP1RQEDWWOHFDVXDOWLHVGXHWRSRRUSUHYHQWLYHPHGLFLQHSUDFWLFHVFDQIDURXWQXPEHUFRPEDW

 $730&73& 6HSWHPEHU

 7UDLQLQJIRU-XQJOH2SHUDWLRQV

FDVXDOWLHVLQWKHMXQJOH,QDGGLWLRQWRWKHLPPHGLDWHOLIHVDYLQJWHFKQLTXHVWDXJKWLQWDFWLFDOFRPEDWFDVXDOW\
FDUH6ROGLHUV0DULQHVRSHUDWLQJLQWKHMXQJOHUHTXLUHDGGLWLRQDOWUDLQLQJRQ²
z +HDWLQMXU\SUHYHQWLRQDQGWUHDWPHQW
z 'HK\GUDWLRQSUHYHQWLRQDQGWUHDWPHQW
z ,PPHGLDWHWUHDWPHQWSURFHGXUHVIRUVQDNHELWHV
z ,PPHGLDWHWUHDWPHQWSURFHGXUHVIRULQVHFWELWHVDQGVWLQJV
z ,GHQWLILFDWLRQDQGWUHDWPHQWIRUH[SRVXUHWRQR[LRXVSODQWV
z 3UHYHQWLRQPHWKRGVVLJQVV\PSWRPVDQGLQLWLDOWUHDWPHQWIRUFRPPRQMXQJOHGLVHDVHVVXFKDV²
ƒ &KDJDVGLVHDVH
ƒ 'HQJXHIHYHU
ƒ 7U\SDQRVRPLDVLVRWKHUZLVHNQRZQDV$IULFDQVOHHSLQJVLFNQHVV
ƒ /HLVKPDQLDVLV
ƒ /HSURV\
ƒ /\PSKDWLFILODULDVLV
ƒ 0DODULD
ƒ 2QFKRFHULDVLVRWKHUZLVHNQRZQDVULYHUEOLQGQHVV
z 3URSHUSUHYHQWLYHPHGLFLQHWHFKQLTXHVIRU²
ƒ )LHOGK\JLHQH
ƒ )RRGKDQGOLQJDQGSUHSDUDWLRQ
ƒ 6LWLQJFRQVWUXFWLRQDQGXVHRIILHOGH[SHGLHQWODWULQHV
z 3UHYHQWLRQDQGWUHDWPHQWRILPPHUVLRQIRRW
z 3UHYHQWLRQDQGWUHDWPHQWRIIXQJDOGLVHDVHVVXFKDV²
ƒ 7LQHDYHUVLFRORU
ƒ 7LQHDFUXULVRWKHUZLVHNQRZQDVMRFNLWFK
ƒ 7LQHDSHGLVRWKHUZLVHNQRZQDVDWKOHWH¶VIRRW
z :DWHUSXULILFDWLRQWHFKQLTXHV

3+<6,&$/&21',7,21,1*$1'$&&/,0$7,=$7,21
 7RWKHH[WHQWSRVVLEOHSK\VLFDOFRQGLWLRQLQJDQGDFFOLPDWL]DWLRQVKRXOGWDNHSODFHVLPXOWDQHRXVO\$
XQLWWKDWWUDLQVLQDKRWHQYLURQPHQWEHJLQVSK\VLFDOWUDLQLQJDWQLJKWRUGXULQJWKHFRROHUSDUWRIWKHGD\
(YHQWXDOO\LWZRUNVXSWRULJRURXVWUDLQLQJVXFKDVIRRWPDUFKHVDWPLGGD\
 ([HUFLVHLVWKHEHVWPHWKRGIRUDFFOLPDWL]DWLRQ7URRSVLQJRRGSK\VLFDOFRQGLWLRQDGDSWPRUHHDVLO\
WRQHZFOLPDWHV$WRGD\FRQGLWLRQLQJSHULRGVXIILFHVIRUPRVWWURRSVDUULYLQJLQDMXQJOH ,QWKHILUVW
IHZGD\VFRPPDQGHUVOLPLWWURRSVWRPRGHUDWHO\VWUHQXRXVH[HUFLVHVWKDWEHFRPHPRUHGHPDQGLQJHDFK
GD\7URRSVIURPZDUPFOLPDWHVDGDSWIDVWHUWKDQWURRSVGHSOR\LQJIURPFROGHUFOLPDWHV3K\VLFDOWUDLQLQJ
LQ KHDWHG J\PQDVLXPV SULRU WR GHSOR\PHQW FDQ KHOS HDVH WKH DFFOLPDWL]DWLRQ SURFHVV /HDGHUV ZDWFK IRU
V\PSWRPVRIKHDWLQMXU\GXULQJWKHDFFOLPDWL]DWLRQSHULRG

:($321675$,1,1*
 7URRSVWUDLQWRPDLQWDLQZHDSRQVSURILFLHQF\DWDOOUDQJHVKRZHYHUPRVWMXQJOHHQJDJHPHQWVUHTXLUH
WKHDELOLW\WRUDSLGO\HQJDJHWDUJHWVDWFORVHGLVWDQFHVGXULQJERWKGD\DQGQLJKWFRQGLWLRQV&RPPDQGHUV
FRQVLGHUHTXLSSLQJLQGLYLGXDOZHDSRQVZLWKFORVHFRPEDWRSWLFVWRHQKDQFHWKHLUWURRSV¶PDUNVPDQVKLSDW
FORVHUDQJHV/HDGHUVVWLOOHPSKDVL]HWUDLQLQJWRPDLQWDLQLQGLYLGXDODQGFUHZVHUYHGZHDSRQVLQZHWDQG
PXGG\MXQJOHFRQGLWLRQV

0$5&+',6&,3/,1(
 $OWKRXJKRISDUWLFXODULPSRUWDQFHWRVXVWDLQPHQWXQLWVDOOXQLWV GHSOR\LQJWRDMXQJOHHQYLURQPHQW
WUDLQLQPRXQWHGURDGPDUFKWHFKQLTXHV7UDLQLQJVKRXOGHPSKDVL]H²

6HSWHPEHU $730&73& 

&KDSWHU

z 2IIURDGPRYHPHQWRYHUFRPSOH[WHUUDLQ
z ,QWHUYDOVDQGVSDFLQJZKHQPRYLQJDVDFRQYR\
z 9HKLFOHVSDFLQJWRPDLQWDLQYLVLELOLW\
z /LNHDQGVHOIUHFRYHU\WHFKQLTXHV
z 9HKLFOHFDPRXIODJH
z &RQFHDOPHQWRIYHKLFOHWUDFNV
z 'LVSHUVLRQDQGVHFXULW\DWKDOWV
z $LUGHIHQVHGULOOV
z ,QGLUHFWILUHGULOOV
z 5HDFWLRQWRDPEXVK
z 5HDFWLRQWRURDGEORFN

$'-8670(17$1'&21'8&72)),5(
 *HQHUDOWHFKQLTXHVIRUUHTXHVWLQJDQGDGMXVWLQJLQGLUHFWILUHLQWKHMXQJOHDUHWKHVDPHDVRSHUDWLRQV
LQ PRUH WHPSHUDWH FOLPDWHV +RZHYHU WKH MXQJOH¶V VLJQLILFDQW FKDQJHV LQ HOHYDWLRQ DQG OLPLWHG YLVLELOLW\
SUHVHQWWKHQHHGWRDGMXVWILUHXVLQJRQO\VRXQG6HHSDUDJUDSKVWKURXJKIRUPRUHLQIRUPDWLRQ
RQDGMXVWLQJLQGLUHFWILUHPHWKRGVXVLQJRQO\VRXQG

$,5'()(16(
 ,Q MXQJOH RSHUDWLRQV WKH HQHP\ FDQ WDUJHW DQ\ XQLW ZLWK DQ DLU DWWDFN 7KH HQHP\ FDQ FRQGXFW DLU
DWWDFNVDQGUHFRQQDLVVDQFHZLWKKLJKSHUIRUPDQFHDLUFUDIWKHOLFRSWHUVDQG8$68QLWVDVVXPHHQHP\DLU
VXSHULRULW\GXULQJDOOILHOGWUDLQLQJ:KHQSUDFWLFDOWURRSVXVHDHULDOSKRWRJUDSKVRISRVLWLRQVDQGLQWHUYLHZV
ZLWKSLORWVWRFULWLTXHDLUGHIHQVHPHDVXUHVERWKSDVVLYHDQGDFWLYH
 3DVVLYH DLU GHIHQVH PHDVXUHV VKRXOG EH D URXWLQH SDUW RI XQLW 623V 8QLWV WUDLQ WR XVH FRYHU DQG
FRQFHDOPHQW WR SURWHFW WKHPVHOYHV IURP DHULDO GHWHFWLRQ DQG DWWDFN 1DWXUDO FRYHU DQG FRQFHDOPHQW LV
H[WHQVLYH LQ PDQ\MXQJOHDUHDVEXWXQLWVVKRXOGQRWDVVXPHWKDWLW SURYLGHVHIIHFWLYH SDVVLYHDLUGHIHQVH
PHDVXUHV 8QLWV VKRXOG UHJXODUO\ GLVSHUVH RU GLJ LQ YHKLFOHV SDUWLFXODUO\ XQDUPRUHG YHKLFOHV RU SURYLGH
UHYHWPHQWV :KHQ DSSURSULDWH FRPPDQGHUV SRVW DLU JXDUGV WUDLQHG LQ DLUFUDIW UHFRJQLWLRQ ZLWK FOHDU
LQVWUXFWLRQVRQZKDWDFWLRQVWRWDNHZKHQWKH\VLJKWDLUFUDIW8QLWVQRWEHLQJDWWDFNHGE\DLUFUDIWEXWDUHLQ
SUR[LPLW\WRWKHDWWDFNFRQVLGHUUHPDLQLQJVWDWLRQDU\DQGQRWHPSOR\LQJRUJDQLFZHDSRQVLQRUGHUWRDYRLG
GHWHFWLRQ0HDVXUHVWRUHGXFH,5VLJQDWXUHVFDQDOVRHIIHFWLYHO\FRQFHDOYHKLFOHVDQGHTXLSPHQWIURPDHULDO
GHWHFWLRQDQGDWWDFN
 $FWLYH DLU GHIHQVH PHDVXUHV XVHG LQ MXQJOH RSHUDWLRQV GR QRW GLIIHU IURP WKRVH SUDFWLFHG LQ RWKHU
FOLPDWHVKRZHYHUDWWKHVPDOOXQLWOHYHOOHDGHUVQHHGWRJLYHDGGLWLRQDOHPSKDVLVWRDLUGHIHQVHXVLQJVPDOO
DUPV:KHQHQHP\DLUFUDIWHQJDJHFRPEDWYHKLFOHVRQWKHPRYHWKHLULPPHGLDWHDFWLRQGHSHQGVRQZKHWKHU
RU QRW WKH\ DUH PDQHXYHULQJ LQ FRQWDFW ZLWK WKH HQHP\ ,I WKH\ DUH LQ FRQWDFW WKH\ VKRXOG FRQWLQXH WR
PDQHXYHUUHO\LQJRQRYHUZDWFKHOHPHQWVDQGDLUGHIHQVHDUWLOOHU\WRHQJDJHDWWDFNLQJDLUFUDIW
 9HKLFOHVDERXWWREHHQJDJHGE\HQHP\DLUFUDIWLQRSHQMXQJOHZLWKRXWFRYHUPRYHSHUSHQGLFXODUWR
WKHDWWDFNLQJDLUFUDIWWRHYDGHURFNHWRUPDFKLQHJXQILUH,ISRVVLEOHWKHVHYHKLFOHVHQJDJHWKHHQHP\DLUFUDIW
ZLWKVPDOODUPVILUH0HDQZKLOHWKHUHPDLQGHURIWKHXQLWVKRXOGPDVVVPDOODUPVILUHWRWKHDLUFUDIW¶VIURQW

)5$75,&,'(&216,'(5$7,216
 7KHDEVHQFHRIHDVLO\LGHQWLILDEOHWHUUDLQIHDWXUHVLQWKHMXQJOHPDNHVNQRZLQJDXQLW¶VORFDWLRQDQG
WKH ORFDWLRQ RI DGMDFHQW XQLWV GLIILFXOW (IIHFWLYH XQLW WUDLQLQJ LQFRUSRUDWHV WKH IROORZLQJ IUDWULFLGH
FRQVLGHUDWLRQV
z 8VHDFRPELQDWLRQRIWUDGLWLRQDOODQGQDYLJDWLRQVNLOOVDQGVDWHOOLWHHQDEOHGSUHFLVLRQQDYLJDWLRQ
GHYLFHV WR NQRZ XQLW ORFDWLRQ DQG FRPPXQLFDWH ZLWK DGMDFHQW XQLWV ,Q WKLV PDQQHU XQLWV FDQ
V\QFKURQL]H PDQHXYHU HQKDQFH DZDUHQHVV DQG DYRLG IUDWULFLGH 6HH $SSHQGL[ $ IRU PRUH
LQIRUPDWLRQRQODQGQDYLJDWLRQ

 $730&73& 6HSWHPEHU

 7UDLQLQJIRU-XQJOH2SHUDWLRQV

z (QVXUHSRVLWLYHWDUJHWLGHQWLILFDWLRQ6ROGLHUV0DULQHVUHYLHZYHKLFOHDQGZHDSRQVLGHQWLILFDWLRQ
FDUGV 7KH\NQRZDWZKDWUDQJHVDQGXQGHUZKDWFRQGLWLRQVSRVLWLYHLGHQWLILFDWLRQRIYHKLFOHVDQG
ZHDSRQVLVSRVVLEOH
z 0DLQWDLQVLWXDWLRQDODZDUHQHVVDQGNQRZXQLWORFDWLRQVGLVSRVLWLRQVGHQLDODUHDVPLQHILHOGV
DQGFRQWDPLQDWHGDUHDVVXFKDVFKHPLFDOFRQWDPLQDWLRQ-XQJOHHQYLURQPHQWVRIWHQPDNHWKLV
PRUHFKDOOHQJLQJEHFDXVHVDWHOOLWHHQDEOHGQDYLJDWLRQGHYLFHVPD\EHGHJUDGHG
z &RQGXFWLQGLYLGXDODQGFROOHFWLYHIUDWULFLGHDZDUHQHVVWUDLQLQJ7KLVLQFOXGHVWDUJHWLGHQWLILFDWLRQ
DQGUHFRJQLWLRQILUHGLVFLSOLQHDQGOHDGHUWUDLQLQJ
z 8VHFRPPRQODQJXDJHDQGYRFDEXODU\8VHGRFWULQDOO\FRUUHFWWHUPLQRORJ\DQGFRQWUROPHDVXUHV
IRUH[DPSOHILUHVXSSRUWFRRUGLQDWLRQOLQHDQGUHVWULFWLYHILUHOLQH
z 'XULQJ WHUUDLQ DQDO\VLV FRQVLGHU KRZ XQLWV FDQ XVH WKH WHUUDLQ WR PLWLJDWH WKH SRWHQWLDO IRU
IUDWULFLGHZKLOHDOVRLGHQWLI\LQJDUHDVZKHUHWKHWHUUDLQPD\PDNHIUDWULFLGHPRUHOLNHO\7KLVLV
SDUWLFXODUO\LPSRUWDQWZKHQSODQQLQJDGHIHQVHDQGGXULQJ($GHYHORSPHQW7KLVDQDO\VLVVKRXOG
LQFOXGHREVHUYDWLRQDQGILHOGVRIILUHVFRYHUDQGFRQFHDOPHQWREVWDFOHVDQGPRYHPHQWFRUULGRUV
NH\WHUUDLQDQGDYHQXHVRIDSSURDFK

6HSWHPEHU $730&73& 



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 $SSHQGL[$
1DYLJDWLRQDQG7UDFNLQJLQ-XQJOH5HJLRQV

7KLV DSSHQGL[ LQWURGXFHV XQLTXH 773 IRU QDYLJDWLRQ DQG WUDFNLQJ LQ MXQJOH
HQYLURQPHQWV,WLVQRWLQWHQGHGWRVXSSODQWEDVLFODQGQDYLJDWLRQWUDLQLQJ5HIHUWR
7& IRUPRUHLQIRUPDWLRQRQODQGQDYLJDWLRQ0DULQHVUHIHUWR0&73$
>0&:3@IRUPRUHLQIRUPDWLRQRQVFRXWLQJDQGWUDFNLQJ

-81*/(1$9,*$7,21722/6
$ 1DYLJDWLQJLQWKHMXQJOHFDQ EH GLIILFXOW IRUWURRSVQRWDFFXVWRPHGWRLW 7HUUDLQDVVRFLDWLRQ LQWKH
MXQJOH SURYHV SDUWLFXODUO\ FKDOOHQJLQJ DV WKH WKLFN YHJHWDWLRQ RIWHQ SUHYHQWV 6ROGLHUV0DULQHV IURP
UHFRJQL]LQJLGHQWLILDEOHWHUUDLQ1DYLJDWLRQLQWKHMXQJOHFDQEHIXUWKHUFRPSOLFDWHGE\WKHLQDELOLW\WRPDNH
VWUDLJKWOLQHPRYHPHQWV$OWKRXJKVORZHUGHDGUHFNRQLQJLVWKHPRVWHIIHFWLYHQDYLJDWLRQPHWKRGXVHGLQ
WKH MXQJOH 7HUUDLQ DQDO\VLV FRQVWDQW XVH RI WKH FRPSDVV DQG DQ DFFXUDWH SDFH FRXQW DUH HVVHQWLDO WR
QDYLJDWLRQLQWKLVGHPDQGLQJHQYLURQPHQW

0$36
$ 7RSRJUDSKLFVXUYH\LQJLVGLIILFXOWLQWKHMXQJOH%HFDXVHRIWKHODFNRI/2&VWKHUXJJHGWHUUDLQDQG
WKHWKLFNFDQRS\WRSRJUDSKLFVXUYH\LQJLVGRQHPDLQO\E\DLUDQGVDWHOOLWH$OWKRXJKPDSVRIMXQJOHDUHDV
JHQHUDOO\ GHSLFW PDMRU WHUUDLQ IHDWXUHV KLOOV ULGJHV YDOOH\V VDGGOHV DQG GHSUHVVLRQV DFFXUDWHO\ VRPH
VPDOOHUWHUUDLQIHDWXUHV²VXFKDVGUDZVVSXUVDQGFOLIIV²ZKLFKDUHDFWXDOO\RQWKHJURXQGPD\QRWDSSHDU
RQWKHPDS%HIRUHFRQGXFWLQJRSHUDWLRQVLQWKHMXQJOHFRPPDQGHUVDQGVWDIIHQVXUHWKH\KDYHWKHPRVW
FXUUHQWDQGDFFXUDWHPDSVDYDLODEOH

&203$66
$ 1R 6ROGLHU0DULQH VKRXOG PRYH LQ WKH MXQJOH ZLWKRXW D FRPSDVV 7KH 6ROGLHU0DULQH WLHV RQH WR
FORWKLQJE\DVWULQJRUERRWODFH7KHWKUHHPRVWFRPPRQPHWKRGVIRUGHDGUHFNRQLQJZLWKDFRPSDVVLQWKH
MXQJOH
z 6LJKWLQJDORQJWKHGHVLUHGD]LPXWK7KH6ROGLHU0DULQHQRWHVDQREMHFWWRWKHIURQWXVXDOO\DWUHH
RUEXVKLQOLQHZLWKWKHSURSHUD]LPXWKRQWKHFRPSDVVDQGPRYHVWRWKDWREMHFW7KLVLVQRWD
JRRGPHWKRGLQWKHMXQJOHDVWUHHVDQGEXVKHVWHQGWRORRNYHU\PXFKDOLNH
z +ROGLQJWKHFRPSDVVDWZDLVWOHYHODQGZDONLQJLQWKHGLUHFWLRQRIDVHWD]LPXWK7KLVLVDJRRG
PHWKRGIRUWKHMXQJOH7KH6ROGLHU0DULQHVHWVWKHFRPSDVVIRUQLJKWXVHZLWKWKHORQJOXPLQRXV
OLQHSODFHGRYHUWKHOXPLQRXVQRUWKDUURZDQGWKHGHVLUHGD]LPXWK XQGHUWKHEODFNLQGH[OLQH
+RZHYHUQDYLJDWRUVQDWXUDOO\WHQGWRGULIWHLWKHUOHIWRUULJKWXVLQJWKLVPHWKRG-XQJOHQDYLJDWRUV
PXVWOHDUQWKHLURZQWHQGHQFLHVDQGSUHYHQWWKLVGULIW
z 6LJKWLQJDORQJWKHGHVLUHGD]LPXWKDQGJXLGLQJD6ROGLHU0DULQHIRUZDUGXQWLOWKH\DUHRQOLQH
ZLWKWKHD]LPXWK7KHXQLWWKHQPRYHVWRWKH6ROGLHU0DULQHDQGUHSHDWVWKHSURFHVV7KLVLVWKH
PRVWDFFXUDWHPHWKRGWRXVHLQWKHMXQJOHGXULQJGD\OLJKWKRXUVEXWLWLVVORZ,QWKLVPHWKRGWKH
FRPSDVV6ROGLHU0DULQHFDQQRWPLVWDNHWKHDLPLQJSRLQWDQGLVIUHHWRUHOHDVHWKHFRPSDVVRQLWV
VWULQJDQGXVHERWKKDQGVGXULQJPRYHPHQWWRWKHQH[WDLPLQJSRLQW
$ 7KH NH\V WR QDYLJDWLRQ DUH PDLQWDLQLQJ WKH ULJKW D]LPXWK DQG NQRZLQJ WKH GLVWDQFH WUDYHOHG
6ROGLHUV0DULQHVRQO\DFTXLUHVNLOOZLWKWKHFRPSDVVWKURXJKSUDFWLFH7RGHWHUPLQHWKHGLVWDQFHWUDYHOOHG
6ROGLHUV0DULQHV FDQ XVH WKH PDS WR UHIHUHQFH WHUUDLQ IHDWXUHV DQG FRPSDUH WKHP WR LGHQWLILDEOH WHUUDLQ
IHDWXUHV RQ WKH JURXQG +RZHYHU WKH PRVW HIIHFWLYH PHWKRG IRU GHWHUPLQLQJ WKH GLVWDQFH WUDYHOOHG LV
PDLQWDLQLQJDQDFFXUDWHSDFHFRXQW

6HSWHPEHU $730&73& $

$SSHQGL[$

&+(&.,1*7(55$,1)($785(6
$ 6ROGLHUV0DULQHVQHHGWRQRWHPDMRUWHUUDLQIHDWXUHVKLOOVULGJHVVDGGOHVGHSUHVVLRQVDQGYDOOH\V
DVWKH\UHDFKDQGLGHQWLI\WKHPRQWKHPDS-XQJOHQDYLJDWRUVPXVWEHFDXWLRXVDERXWWUDLOV7UDLOVRQWKH
JURXQGPD\QRWDSSHDURQWKHPDSDQGWUDLOVRQWKHPDSPD\QRORQJHUH[LVWRQWKHJURXQG6ROGLHUV0DULQHV
PXVW DOVR XVH FDXWLRQ ZKHQ UHIHUHQFLQJ VWUHDPV GHSLFWHG RQ PDSV DV WKHVH PD\ QR ORQJHU H[LVW 7URRSV
QDYLJDWLQJLQRUDORQJGU\VWUHDPVPXVWXVHH[WUHPHFDXWLRQDVIODVKIORRGLQJGXULQJWKHMXQJOH¶VPRQVRRQ
VHDVRQFDQRFFXUUDSLGO\

5$7(2)029(0(17
$ 7KHUDWHRIPRYHPHQWYDULHVZLWKWKHSK\VLFDOFRQGLWLRQRIWKHWURRSVWKHORDGWKH\FDUU\WKHSRWHQWLDO
IRUHQHP\FRQWDFWDQGWKHW\SHRIMXQJOHJURZWK7KHQRUPDOHUURULQGHWHUPLQLQJUDWHRIPRYHPHQWRIWHQ
LQYROYHV RYHUHVWLPDWLQJ WKH GLVWDQFH WUDYHOHG 7DEOH $ FDQ EH XVHG DV D URXJK JXLGH WR WKH PD[LPXP
GLVWDQFHWKDW6ROGLHUV0DULQHVPLJKWFRYHULQRQHKRXUGXULQJGD\OLJKW
7DEOH$'D\OLJKWPRYHPHQWUDWHV
Type Terrain Maximum Distance (in meters per hour)
7URSLFDO5DLQIRUHVW XSWR
'HFLGXRXV)RUHVW 
6HFRQGDU\-XQJOH7DOO*UDVV
6ZDPSV WR
5LFH3DGGLHV:HW 
5LFH3DGGLHV'U\ 
3ODQWDWLRQV 
7UDLOV XSWR

3$&( &2817
$ 3DFH FRXQW LV RIWHQ WKH EHVW PHWKRG IRU PHDVXULQJ GLVWDQFH WUDYHOOHG :LWK WKLV LQIRUPDWLRQ
6ROGLHUV0DULQHVFDQEHWWHUHVWLPDWHZKHUHWKH\DUHDWDQ\JLYHQWLPH7REHDFFXUDWHWURRSVPXVWSUDFWLFH
SDFLQJ RYHU GLIIHUHQW W\SHV RI WHUUDLQ ,GHDOO\ HDFK 6ROGLHU0DULQH PDNHV D SHUVRQDO SDFH WDEOH OLNH WKH
H[DPSOHVKRZQLQILJXUH$

)LJXUH$3DFHWDEOH

$ $WOHDVWWZR6ROGLHUV0DULQHVLQHDFKSDWUROVKRXOGEHFRPSDVV6ROGLHUV0DULQHVDQGWKUHHRUIRXU
VKRXOGNHHSSDFHFRXQW7KHDUWLOOHU\ILUHVXSSRUWWHDPFKLHIVKRXOGNHHSDQDFFXUDWHIL[RQWKHLUORFDWLRQDV

$ $730&73& 6HSWHPEHU

 1DYLJDWLRQDQG7UDFNLQJLQ-XQJOH5HJLRQV

VKRXOG WKH SODWRRQ IRUZDUG REVHUYHUV 7KH ILUH VXSSRUW WHDP FKLHI FDQ EH D JUHDW KHOS WR WKH FRPSDQ\
FRPPDQGHULQPDWWHUVRIQDYLJDWLRQ
$ 5HVHFWLRQHQDEOHVWURRSVWRORFDWHWKHLUSRVLWLRQRQDPDSE\GHWHUPLQLQJWKHJULGD]LPXWKWRDWOHDVW
WZRZHOOGHILQHGORFDWLRQVSLQSRLQWHGRQWKHPDS)RUJUHDWHUDFFXUDF\WURRSVFRQGXFWLQJUHVHFWLRQXVHWKUHH
RUPRUHZHOOGHILQHGORFDWLRQV,ID SDWUROEHFRPHVXQFHUWDLQRILWVORFDWLRQDQGLWKDVQRLGHQWLILDEOHWHUUDLQ
IHDWXUHVDYDLODEOHWRSHUIRUPDWUDGLWLRQDOUHVHFWLRQWKHFRPPDQGHUFDQFRQGXFWUHVHFWLRQE\LQGLUHFWILUH

Note.-XQJOHIROLDJHZLOORIWHQUHTXLUHWKDWDUWLOOHU\PDUNLQJURXQGVEHVHQVHGE\VRXQG

$ 5HVHFWLRQ E\ LQGLUHFW ILUH VXEVWLWXWHV WKH WUDGLWLRQDO WHUUDLQ IHDWXUHV XVHG WR FRQGXFW UHVHFWLRQ ZLWK
LOOXPLQDWLRQRUZKLWHSKRVSKRUXVURXQGV8QLWVILUHLOOXPLQDWLRQRUZKLWHSKRVSKRUXVDLUEXUVWURXQGVRQWZR
ZLGHO\VHSDUDWHGJULGVDVDIHGLVWDQFHIURPWKHORVWXQLW¶VHVWLPDWHGORFDWLRQ8QLWVWDNHDQD]LPXWKWRHDFK
RIWKHVHURXQGVWKHEDFND]LPXWKVDUHFDOFXODWHGDQGSORWWHGRQWKHPDS7KHSRLQWZKHUHWKHEDFND]LPXWKV
LQWHUVHFWLVWKHREVHUYHU¶VDSSUR[LPDWHORFDWLRQ6HHILJXUH$IRUDQH[DPSOHRIUHVHFWLRQE\LQGLUHFWILUH

)LJXUH$5HVHFWLRQE\LQGLUHFWILUH

$5($1$9,*$7,21
$ 6ROGLHUV0DULQHVFDQHDVLO\FRUUHFWDQHUURULQQDYLJDWLRQE\RULHQWLQJRQWHUUDLQIHDWXUHVWKH\FDQVHH
IURPDORQJGLVWDQFH(YHQZKHQPDNLQJSULPDU\XVHRIWKHFRPSDVVIRUGHDGUHFNRQLQJ6ROGLHUV0DULQHV
FDQ VWLOO QDYLJDWH WR DQ H[SDQGHG REMHFWLYH WKDW LV HDVLO\ LGHQWLILHG E\ WHUUDLQ DVVRFLDWLRQ 8QLWV FDQ WKHQ
FRQGXFWDVKRUWHUSRLQWQDYLJDWLRQWRWKHLUILQDOREMHFWLYH7ZRWHFKQLTXHVIRUDUHDQDYLJDWLRQDUHWKHRIIVHW
PHWKRGDQGWKHDWWDFNSRLQWPHWKRG

2IIVHW0HWKRG
$ 7KHRIIVHWPHWKRGIDFLOLWDWHVUHDFKLQJDQREMHFWLYHWKDWLVQRWODUJHRUQRWRQUHDGLO\LGHQWLILDEOHWHUUDLQ
EXWLVRQDOLQHDUIHDWXUHVXFKDVDURDGVWUHDPRUULGJH7KHXQLWSODQVDURXWHIROORZLQJDQD]LPXWK WKDW
IDOOVDIHZGHJUHHVWRWKHOHIWRUULJKWRIWKHREMHFWLYH7KHXQLWWKHQIROORZVWKHD]LPXWKWRWKDWWHUUDLQIHDWXUH
7KXVZKHQWKHXQLWUHDFKHVWKHWHUUDLQIHDWXUHWKHPHPEHUVNQRZWKHREMHFWLYHLVWRWKHLUULJKWRUOHIWDQG
WKHWHUUDLQIHDWXUHSURYLGHVDSRLQWRIUHIHUHQFHIRUPRYHPHQWWRWKHREMHFWLYH6HHILJXUH$RQSDJH$
IRUDQH[DPSOHRIWKHRIIVHWPHWKRG

$WWDFN3RLQW0HWKRG
$ 6ROGLHUV0DULQHV XVH WKHDWWDFNSRLQW PHWKRG ZKHQ PRYLQJWRDQREMHFWLYHQRWRQD OLQHDUIHDWXUH
7KH\FKRRVHDQHDVLO\UHFRJQL]DEOHWHUUDLQIHDWXUHDVFORVHDVSRVVLEOHWRWKHREMHFWLYH7KHXQLWWKHQPRYHV
WRWKDWIHDWXUH2QFHWKHUHWKHXQLWIROORZVWKHSURSHUD]LPXWKDQGPRYHVWKHHVWLPDWHGGLVWDQFHWRJHWWRWKH
REMHFWLYH6HHILJXUH$ RQSDJH$ IRUDQH[DPSOHRIWKHDWWDFNSRLQWPHWKRG

6HSWHPEHU $730&73& $

$SSHQGL[$

)LJXUH$2IIVHWPHWKRG )LJXUH$$WWDFNSRLQWPHWKRG

:+$772 '2 ,) /267,1$-81*/((19,5210(17

$ ,IORVWLQWKHMXQJOHWKHILUVWVWHSWRUHFRYHU\LVUHPDLQLQJFDOP,IDWURRSVJHWORVWWKH\PXVWZRUN
WRJHWKHUWREHVWGHWHUPLQHWKHLUFXUUHQWORFDWLRQ$IWHUHVWLPDWLQJWKHLUFXUUHQWORFDWLRQWKHWURRSVFDQWKHQ
HLWKHUFRQWLQXHWRWKHLUREMHFWLYHRUPRYHEDFNWRWKHLUDVVHPEO\DUHDRURWKHUIULHQGO\ORFDWLRQ'LVRULHQWHG
QDYLJDWRUVVKRXOGWU\WRDQVZHUWKHIROORZLQJTXHVWLRQV
z :KDWZDVWKHODVWNQRZQORFDWLRQ"
z 'LGWKHXQLWJRWRRIDUSDVWWKHREMHFWLYH"7KH\VKRXOGFRPSDUHHVWLPDWHVRIUDWHRIPDUFKSDFH
FRXQWDQGGLVWDQFHWUDYHOHG
z 'RHVWKHWHUUDLQORRNWKHZD\LWVKRXOG"7KH\VKRXOGFRPSDUHWKHLUVXUURXQGLQJVZLWKWKHPDS
z :KDWWHUUDLQIHDWXUHVFDQWKH\XVHWRKHOSLGHQWLI\WKHLUORFDWLRQ",IWHUUDLQIHDWXUHVDUHDYDLODEOH
WKH\FDQEHXVHGWRFRQGXFWUHVHFWLRQ
$ ,IWKHXQLWFDQQRWGHWHUPLQHLWVORFDWLRQXVLQJWKHVHWHFKQLTXHVWKHOHDGHUFDQFRQGXFWUHVHFWLRQE\
LQGLUHFWILUH+RZHYHUWKLVPD\EHWUD\WKHXQLW¶VORFDWLRQRUSUHVHQFHWRWKHHQHP\,IUHVHFWLRQE\LQGLUHFW
ILUHLVQRWSRVVLEOHWKHFRPPDQGHUFDQXVHDQDHULDOVSRWWHULIDYDLODEOHWRILQGWKHORVWSDWURO7KHVWDIIFDQ
FRQWDFWDQGJXLGHWKHSLORWE\UDGLRWRWKHXQLW¶VODVWNQRZQORFDWLRQ7KHXQLWVLJQDOVWRWKHSLORWXVLQJD
PLUURUVPRNHSDQHOVRUVRPHRWKHUYLVXDOVLJQDO7KHSLORWFDQWKHQGHWHUPLQHWKHXQLW¶VORFDWLRQDQGUHSRUW
LWWRWKHVWDII+RZHYHUWKLVPHWKRGPD\DOVREHWUD\WKHXQLW¶VORFDWLRQWRWKHHQHP\DQGPXVWEHXVHGZLWK
FDXWLRQ
$ :KHQWKHDERYHPHWKRGVIDLOWRKHOSWKHXQLWLGHQWLI\LWVORFDWLRQ6ROGLHUV0DULQHVFDQHYHQWXDOO\ILQG
WKHLUZD\RXWRIWKHMXQJOHE\IROORZLQJDULYHURUVWUHDPGRZQVWUHDP7KLVLVDPHWKRGRIODVWUHVRUWDVWKH
ULYHURUVWUHDP PD\HPSW\LQWRWKHRFHDQLQHQHP\FRQWUROOHGWHUULWRU\ IDUIURPRWKHUIULHQGO\ IRUFHVRU
VXVWDLQPHQWDVVHWV7KLVPD\DOVRUHTXLUHWKHXQLWWRFRQGXFWDOHQJWK\DQGDUGXRXVGLVPRXQWHGPRYHPHQW

1,*+7029(0(17
$ 7KH SULQFLSOHV IRU QDYLJDWLRQ DW QLJKW PLPLF WKRVH IRU PRYHPHQW GXULQJ WKH GD\ KRZHYHU QLJKW
QDYLJDWLRQ LV RIWHQ VORZHU DQG UHTXLUHV FRQGHQVLQJ WKH VL]H RI WKH SDWURO WR HQVXUH DGHTXDWH FRQWURO
6ROGLHUV0DULQHVPD\KDYHPRUHGLIILFXOW\UHFRJQL]LQJWHUUDLQIHDWXUHVGXULQJSHULRGVRIOLPLWHGYLVLELOLW\
DQGXQLWVPD\KDYHWRFRQWLQXDOO\VKRRWVKRUWD]LPXWKVWRZKDWHYHUREMHFWRUIHDWXUHWKH\FDQLGHQWLI\DORQJ
WKHLU D]LPXWK 7KHVH IDFWRUV FRPSOLFDWH DQG VORZ PRYHPHQW +RZHYHU LQ FOHDU ZHDWKHU WKURXJK VSDUVH
YHJHWDWLRQDQGXQGHUDIXOOPRRQDXQLWFDQPRYHDOPRVWDVIDVWE\QLJKWDVE\GD\:LWKDQRYHUFDVWVN\
WKLFNYHJHWDWLRQRUOLWWOHRUQRPRRQWKHLUPRYHPHQWZLOOEHVORZDQGKDUGWRFRQWURO

$ $730&73& 6HSWHPEHU

 1DYLJDWLRQDQG7UDFNLQJLQ-XQJOH5HJLRQV

Note. 8QLWV PXVW KDYH H[WHQVLYH WUDLQLQJ WR HIIHFWLYHO\ QDYLJDWH DW QLJKW LQ WKH MXQJOH 1LJKW
PRYHPHQWUHTXLUHVDVLJQLILFDQWDPRXQWRIUHFRQQDLVVDQFHDQGWDFWLFDOSDWLHQFH6RXQGVDUHPRUH
DXGLEOHDQGFDUU\IXUWKHUDWQLJKW7KHVL]HRIWKHXQLWWKHDPRXQWRIVSHFLILFQLJKWWUDLQLQJDQG
WKH GLVWDQFH WR WKH REMHFWLYH DUH FULWLFDO SODQQLQJ FRQVLGHUDWLRQV $GGLWLRQDOO\ OHDGHUV PXVW
SUHSDUHIRUSRWHQWLDOFDVXDOW\HYDFXDWLRQVNQRZQDV&$6(9$&VDVWKHFKDQFHVRILQMXU\ULVH
ZKLOHFRQGXFWLQJQLJKWPRYHPHQW

$ 7KHIROORZLQJSRLQWHUVFDQDVVLVWDXQLWGXULQJQLJKWPRYHPHQW
z /XPLQRXVWDSHDWWDFKHGWRWKHEDFNKHDGJHDUDLGVLQQLJKWWUDYHO7ZRVWULSVVLGHE\VLGHHDFK
DERXWWKHVL]HRIDOLHXWHQDQW¶VEDUZRUNEHVW7KHWZRVWULSVDLGGHSWKSHUFHSWLRQDQGUHGXFHWKH
K\SQRWLFHIIHFWWKDWRQHVWULSFDQFDXVH
z :KHQQROLJKWH[LVWVDWDOOWKHGLVWDQFHEHWZHHQWURRSVLQDSDWUROVKRXOGEHUHGXFHG
z 7KHOHDG6ROGLHU0DULQHFDQFDUU\DORQJVWLFNWRSUREHIRUVWHHSEDQNVFOLIIVRUREVWDFOHV
z ,QOLPLWHGYLVLELOLW\FRQGLWLRQVOLVWHQLQJPD\EHFRPHPRUHLPSRUWDQWWRVHFXULW\WKDQREVHUYLQJ
,ID6ROGLHU0DULQHKHDUVXQQDWXUDOQRLVHVGXULQJDSDWUROWKHXQLWVKRXOGKDOWDVVXPHDVHFXULW\
IRUPDWLRQDQGOLVWHQIRUDGGLWLRQDOQRLVHVIRUDWOHDVWRQHPLQXWH,IWKHQRLVHLVUHSHDWHGRUFDQQRW
EH LGHQWLILHG WKH XQLW VKRXOG LPSURYH LWV SRVLWLRQ DQG GLVSDWFK VHFXULW\ SDWUROV /LNHZLVH
6ROGLHUV0DULQHVFDQVPHOOWRUHFRJQL]HDQHQHP\SUHVHQFHLQWKH DUHD6ROGLHUV0DULQHVPXVW
UHPDLQDOHUWIRUKXPDQVFHQWVVXFKDVWKHVPHOORIDFDPSILUHWUDVKRUERG\RGRU
z $OODYDLODEOH19'VVKRXOGEHXVHG

$ $GGLWLRQDOMXQJOHQDYLJDWLRQSUDFWLFHVLQFOXGH²
z 7UXVW WKH PDS DQG FRPSDVV EXW XQGHUVWDQG WKH PDS¶V SRVVLEOH VKRUWFRPLQJV DQG YHULI\ LWV
DFFXUDF\ZKHQLGHQWLILDEOHWHUUDLQIHDWXUHVDUHUHFRJQL]DEOH
z 8VHWKHFRPSDVVEH]HOULQJGXULQJQLJKWQDYLJDWLRQ
z 'RQRWPRYHRQWUDLOVRUURDGV
z 3ODQHYHU\PRYHPHQWDQGXVHWKHSODQ
z 'RQRWJHWIUXVWUDWHG,ILQGRXEWVWRSDQGWKLQNEDFNRYHUWKHURXWH
z 3UDFWLFHOHDGVWRFRQILGHQFH

75$&.,1*
$ 9LVXDOWUDFNLQJFRQVLVWVRIIROORZLQJWKHSDWKVRISHRSOHRUDQLPDOVE\WKHVLJQVWKH\OHDYHSULPDULO\
RQWKHJURXQGRUYHJHWDWLRQ6FHQWWUDFNLQJLVIROORZLQJSHRSOHRUDQLPDOVE\WKHRGRUVWKH\SURGXFH
$ 6ROGLHUV0DULQHVSUDFWLFHWREHFRPHSURILFLHQWDWWUDFNLQJ%HFDXVHWKHHQHP\KDVDPSOHRSSRUWXQLW\
IRUFRQFHDOPHQWLQWKHMXQJOHDOOWURRSVWUDLQRQJHQHUDOWHFKQLTXHVIRUYLVXDOWUDFNLQJWRGHWHFWWKHSUHVHQFH
RIDFRQFHDOHGHQHP\WRIROORZWKHHQHP\WRORFDWHDQGDYRLGPLQHVRUERRE\WUDSVDQGWRSURYLGHHDUO\
ZDUQLQJRIDPEXVK
$ 7UDFNLQJZRUNVHIIHFWLYHO\IRUORFDWLQJDQHOXVLYHHQHP\SDUWLFXODUO\ZKHQFRPEDWLQJDJXHUULOODRU
LQVXUJHQWIRUFH*XHUULOODVDQGLQVXUJHQWVQRUPDOO\UHWXUQWRWKHLUEDVHVDIWHUFRQGXFWLQJUDLGVRUDPEXVKHV
8QLWVFDQH[SORLWWKHVHRSSRUWXQLWLHVE\WUDFNLQJWKHVPDOOJURXSVRUWHDPVEDFNWRWKHLUEDVHVDQGDWWDFNLQJ
WKH ODUJHU HQHP\ IRUFH ORFDWHG DW WKH FDPS :HOOGHYHORSHG WUDFNLQJ VNLOOV KHOS XQLWV JDLQ DQG PDLQWDLQ
FRQWDFWZLWKWKHHQHP\

6HSWHPEHU $730&73& $

$SSHQGL[$

6,*16
$ 3HRSOHRUDQLPDOVPRYLQJWKURXJKWKHMXQJOHOHDYHVLJQVRIWKHLUSDVVDJH([DPSOHVRIWKHVHVLJQVDUH
OLVWHGLQWDEOH$
7DEOH$7UDFNLQJSRLQWV
Primary Jungles Secondary Rivers, Streams, Savanna Rocky Ground
Jungles Marshes, and
Swamps
:LWKLQUDLQIRUHVWV %URNHQEUDQFKHV )RRWSULQWVRQWKH ,IWKHJUDVVLVKLJK 6PDOOVWRQHVDQG
DQGGHFLGXRXV DQGWZLJV EDQNVDQGLQ DERYHIHHW > URFNVDUHPRYHG
IRUHVWVWKHUHDUH VKDOORZZDWHU PHWHU@ WUDLOVDUH DVLGHRUUROOHGRYHU
PDQ\ZD\VWR HDV\WRLGHQWLI\DQG ZKHQZDONHGRQ
WUDFN7KLVWHUUDLQ IROORZDVWKHJUDVV 7KHVRLOLVDOVR
LQFOXGHV LVNQRFNHGGRZQ GLVWXUEHGOHDYLQJD
XQGHUJURZWKOLYH DQGQRUPDOO\VWD\V GLVWLQFWYDULDWLRQLQ
DQGGHDGOHDYHV GRZQIRUVHYHUDO FRORUDQGDQ
DQGWUHHVVWUHDPV GD\V,IWKHJUDVVLV LPSUHVVLRQ,IWKH
ZLWKPXGG\RU VKRUWLWVSULQJV VRLOLVZHWWKH
VDQG\EDQNVDQG EDFNPRUHTXLFNO\ XQGHUVLGHRIWKH
PRVVRQWKHIRUHVW DQGWUDLOVDUH VWRQHVZLOOEH
IORRUDQGRQURFNV KDUGHUWRLGHQWLI\ PXFKGDUNHULQ
$OOWKHVHIHDWXUHV FRORUWKDQWKHWRS
DUHHDVLO\GLVWXUEHG
ZKLFKPDNHV
WUDFNLQJHDVLHU
'LVWXUEHGOHDYHV /HDYHVNQRFNHGRII 0XGVWLUUHGXSDQG 7UDPSOHGJUDVV ,IWKHVWRQHLV
RQWKHIRUHVWIORRU EXVKHVDQGWUHHV GLVFRORULQJWKH SRLQWV LQWKH EULWWOHLWFKLSV DQG
ZKHQZHWDSSHDU ZDWHU GLUHFWLRQWKDWWKH FUXPEOHV ZKHQ
GDUNHULQFRORU SHUVRQRUDQLPDOLV VWHSSHGRQ$OLJKW
ZKHQGLVWXUEHG WUDYHOLQJ SDWFKDSSHDUV
ZKHUHWKHVWRQHLV
EURNHQDQGWKH
FKLSVQRUPDOO\
UHPDLQQHDUWKH
EURNHQVWRQH
'HDGOHDYHVDUH %UDQFKHVEHQWLQ 5RFNVVSODVKHG *UDVVVKRZV D 6WRQHVRQORRVHRU
EULWWOH7KH\ FUDFN WKHGLUHFWLRQRI ZLWKZDWHULQD FRQWUDVWLQ FRORU VRIWVXUIDFHDUH
RUEUHDNXQGHU WUDYHO TXLHWO\UXQQLQJ ZLWKWKH SUHVVHGLQWRWKH
SUHVVXUHRID VWUHDP VXUURXQGLQJ JURXQGZKHQ
SHUVRQVWHSSLQJRQ XQGHUJURZWKZKHQ ZDONHGXSRQ7KLV
WKHP7KHVDPHLV SUHVVHGGRZQ OHDYHVHLWKHUD
WUXHRIGU\WZLJV ULGJHDURXQGWKH
HGJHRUWKHVWRQH
ZKHUHLWKDVIRUFHG
WKHGLUWRXWRUD
KROHZKHUHWKH
VWRQHKDV EHHQ
SXVKHGEHORZWKH
VXUIDFHRIWKH
JURXQG

$ $730&73& 6HSWHPEHU

 1DYLJDWLRQDQG7UDFNLQJLQ-XQJOH5HJLRQV

7DEOH$7UDFNLQJSRLQWVFRQWLQXHG
Primary Jungles Secondary Rivers, Streams, Savanna Rocky Ground
Jungles Marshes, and
Swamps
:KHUHWKH )RRWSULQWV :DWHURQWKH ,IWKHJUDVVLVZHW :KHUHPRVVLV
XQGHUJURZWKLVWKLFN JURXQGDWDSRLQWRI ZLWKGHZWKH JURZLQJRQURFNV
HVSHFLDOO\RQWKH H[LW PLVVLQJGHZVKRZV RUVWRQHVDERRWRU
HGJHVRIWKHIRUHVW DWUDLOZKHUHD KDQGPD\VFUDSH
JUHHQ OHDYHVRIWKH SHUVRQRUDQ RUGLVWXUEVRPHRI
EXVKHVWKDWKDYH DQLPDOKDV WKHPRVV
EHHQSXVKHGDVLGH WUDYHOHG
DQGWZLVWHGVKRZWKH
XQGHUVLGHRIWKH
OHDYHVWKLVVLGHLV
OLJKWHULQFRORUWKDQ
WKHXSSHUVXUIDFH7R
ILQGWKLVW\SHRIWUDLO
WKHWUDFNHUREVHUYHV
WKHZLGHUJHQHUDO
DUHDIRUFRORUFRQWUDVW
LQVWHDGRIGLUHFWO\DW
WKHVXVSHFWORFDWLRQ
%RRWLPSUHVVLRQV 7XQQHOVPDGH 0XGRQJUDVVRU 0XGRUVRLOIURP
PD\EHOHIWRQIDOOHQ WKURXJKWKLFN RWKHUYHJHWDWLRQ ERRWVPD\DSSHDU
DQGURWWLQJWUHHV YHJHWDWLRQ QHDUWKHHGJHRI RQVRPHRIWKH
WKHZDWHU JUDVV
0DUNVPD\EHOHIWRQ %URNHQVSLGHU ,IQHZYHJHWDWLRQLV
WKHVLGHVRIORJVO\LQJ ZHEV VKRZLQJWKURXJKD
DFURVVWKHSDWK WUDFNWKHWUDFNLV
ROG
6LPLODUWRGLVWXUEHG 3LHFHVRI ,QYHU\VKRUWJUDVV
PRVVRQURFNVURRWV FORWKLQJFDXJKW LQFKHV >
UXQQLQJDFURVVDSDWK RQWKHVKDUS FHQWLPHWHUV@ RU
PD\VKRZVLJQVWKDW HGJHVRIEXVKHV OHVV DERRW
VRPHWKLQJKDV WKRUQVRUEULDUV GDPDJHV WKHJUDVV
PRYHGWKURXJKWKH QHDUWKHJURXQG
DUHD DQG OHDYHVD
IRRWSULQW

7(&+1,48(672'()($775$&.,1*
$ 7KHIROORZLQJWHFKQLTXHVPD\EHXVHGWRGHFHLYHRUGHIHDWWUDFNHUV
z :DONLQJEDFNZDUGV7KHKHHOPDUNWHQGVWREHGHHSHUWKDQWKDWRIWKHEDOORIWKHIRRW7KHSDFH
LVVKRUWHU
z 0RUHWKDQRQHSHUVRQVWHSSLQJLQWKHVDPHWUDFNV
z :DONLQJLQVWUHDPV
z 6SOLWWLQJXSLQWRVPDOOJURXSV
z :DONLQJDORQJIDOOHQWUHHVRUVWHSSLQJIURPURFNWRURFN
z &RYHULQJWUDFNVZLWKOHDYHVGLUWRUEUXVK

:$51,1*
$WUDFNHUVKRXOGDOZD\VEHDOHUWWRWKHSRVVLELOLW\WKDWWKHHQHP\
LVOHDGLQJWKHXQLWLQWRDQDPEXVK

6HSWHPEHU $730&73& $



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 $SSHQGL[%
1HJRWLDWLQJ-XQJOH2EVWDFOHV

7KLVDSSHQGL[LQWURGXFHVWHFKQLTXHVDQGHTXLSPHQWWKDWGLVPRXQWHGWURRSVFDQXVHWR
FURVVWKHVHREVWDFOHV

2%67$&/(6
% 8QLWVRSHUDWLQJLQWKHMXQJOHKDYHWRFURVVPDQ\REVWDFOHV7KHPRVWGLIILFXOWREVWDFOHVZLOOEHVWUHDPV
DQGFOLIIV6ROGLHUVUHIHUWR7&IRUPRUHLQIRUPDWLRQRQW\SHVRIURSHVURSHFDUHNQRWVDQFKRUVDQG
UDSSHOOLQJ WHFKQLTXHV 0DULQHV UHIHU WR 0&53 $ 0&53 & DQG 0&53 %
0&53$IRUDPRUHLQIRUPDWLRQRQURSHVNQRWVDQFKRUVDQGUDSSHOOLQJSURFHGXUHV$GGLWLRQDOO\
XQLWVRSHUDWLQJLQWKHMXQJOHIUHTXHQWO\KDYHWRLQVHUWRUH[WUDFWWURRSVDQGXQLWVLQSODFHVZKHUHKHOLFRSWHUV
FDQQRWODQG6ROGLHUVUHIHUWR$73IRUWHFKQLTXHVHTXLSPHQWDQGWUDLQLQJWRFRQGXFWVSHFLDOSDWURO
LQVHUWLRQVDQGH[WUDFWLRQVIDVWURSHLQVHUWLRQVDQGH[WUDFWLRQVDQGDLUZDWHURSHUDWLRQV

523(6
% 5RSHV DUH FULWLFDO HTXLSPHQW IRU QHJRWLDWLQJ PDQ\ MXQJOH REVWDFOHV 7KH WZR W\SHV RI URSH DUH
FKDUDFWHUL]HGDVHLWKHUVWDWLFRUG\QDPLF
% 6WDWLFURSHLVGHVLJQHGIRUUDSSHOOLQJRSHUDWLRQVORDGKDXOLQJDQGURSHLQVWDOODWLRQV7KLVURSHDOORZV
IRUPLQLPDOVWUHWFKDQGLVWKHSUHIHUUHGW\SHRIURSHIRUUDSSHOOLQJRSHUDWLRQV6WDWLFURSHVWUHWFKHVDERXW
WR  SHUFHQW DW WKH SRLQW RI IDLOXUH DQG DERXW WZR SHUFHQW XQGHU D ZRUNLQJ ORDG 7KH PLQLPXP WHQVLOH
VWUHQJWKIRUDLQFKPLOOLPHWHUVWDWLFURSHIRUPLOLWDU\XVHLVSRXQGV6WDWLFURSHVUDQJHIURP
WRLQFKHVWRPLOOLPHWHUVLQGLDPHWHU
% '\QDPLFURSHLVGHVLJQHGIRUFOLPELQJ7KLVURSHDOORZVIRUVWUHWFKZLWKLQWKHURSH¶VILEHUV7KLVLVD
GLVDGYDQWDJHZKHQUDSSHOOLQJ3UXVVLFFOLPELQJDQGGXULQJRWKHUDSSOLFDWLRQV'\QDPLFURSHVDUHDOVRPRUH
VXVFHSWLEOHWRDEUDVLRQDQGZHDU7KH\KDYHDERXWDWRSHUFHQWZRUNLQJVWUHWFK7KHPLQLPXPWHQVLOH
VWUHQJWKIRUDLQFKPLOOLPHWHUURSHIRUPLOLWDU\XVHLVSRXQGVNLORV

Note. 7KH EUHDNLQJ VWUHQJWK RI D URSH LV DOZD\V JUHDWHU WKDQ LWV VDIH ZRUNLQJ FDSDFLW\ 7KH
GLIIHUHQFHLVD³VDIHW\IDFWRU´,QGLYLGXDOURSHVFDQYDU\JUHDWO\LQPLQLPXPEUHDNLQJVWUHQJWK
(YHQWKRXJKDURSHPD\QRWEUHDNXQGHUWKLVORDGWKHILEHUVDUHVWUHWFKHGEH\RQGWKHLUHODVWLF
OLPLW7KHUHDIWHUWKHVWUHQJWKRIWKHURSHLVSHUPDQHQWO\UHGXFHG([SRVXUHZHDUXVHDQGEHQGLQJ
GHFUHDVHDURSH¶VVWUHQJWKRYHUWLPH7KHVWUHQJWKRIDURSHWKDWLVVOXQJRYHUDKRRNRUFRQWDLQV
DNQRWLVUHGXFHGE\DERXWSHUFHQWVKDUSEHQGVRYHUFRUQHUVZLOOFXWVWUHQJWKE\SHUFHQW
VDQGRUJULWEHWZHHQWKHILEHUVZLOOTXLFNO\FXWWKHILEHUVDQGVKDUSO\UHGXFHWKHURSH¶VVWUHQJWK

% 5RSHVDQGFRUGXVHGLQUDSSHOOLQJRSHUDWLRQVDUHFRQVWUXFWHGLQWZREDVLFFRQILJXUDWLRQV²NHUQPDQWOH
DQG ODLG URSH .HUQPDQWOH URSH FRQWDLQV D FRUH RI Q\ORQ ILEHUV SURWHFWHG E\ D ZRYHQ VKHDWK VLPLODU WR
SDUDFKXWH RU  FRUG NHUQ PHDQV FRUH PDQWOH PHDQV VKHDWK 7KH LQWHUQDO FRUH RI NHUQPDQWOH URSH LV
FRQVWUXFWHGRIDFRQWLQXRXVPXOWLILODPHQWQ\ORQ\DUQVSXQLQWRFRQWLQXRXVSDUDOOHOVWUDQGV7KLVLQWHUQDOFRUH
LVWKHQFRYHUHGZLWKDQ\ORQEUDLGHGRXWHUVKHDWK/DLGURSHLVFRQVWUXFWHGIURPVWUDQGVRIPDWHULDOWZLVWHG
LQWRDURSHRIDVSHFLILFGLDPHWHU)RU\HDUVWKHVWDQGDUGZRUNKRUVHURSHIRUDOOUDSSHOOLQJRSHUDWLRQVZDV
LQFKFHQWLPHWHUODLGQ\ORQURSH7KHVHURSHVDUHHDV\WRLQVSHFWIRUVHUYLFHDELOLW\E\WZLVWLQJWKH
ILEHUV+RZHYHUWKHVHURSHVWHQGWRXQWZLVWVOLJKWO\ZKHQXQGHUORDG7KLVXQWZLVWLQJFDQFDXVHNLQNLQJDQG
VSLQQLQJ/DLGURSHLVDOVRKLJKO\VXVFHSWLEOHWRDEUDVLRQ7KHUHIRUHXQLWVRQO\XVHODLGURSHVIRUUDSSHOOLQJ
LQHPHUJHQFLHV

6HSWHPEHU $730&73& %

$SSHQGL[%

% 7KHIROORZLQJVSHFLILFDWLRQVSHUWDLQWRWKHVWDQGDUGPLOLWDU\Q\ORQODLGFOLPELQJDQGUDSSHOOLQJURSH
z IHHWPHWHUVORQJ
z LQFKHVPLOOLPHWHUVZLGH
z $WOHDVWDSRXQGNLORVWHQVLOHVWUHQJWK
z 2QHWKLUGVWUHWFKIDFWRUDWSRLQWRIIDLOXUH
z 0D\ORVHDVPXFKDVSHUFHQWRIURSHVWUHQJWKZKHQZHW

% 7LSVDQGWHFKQLTXHVIRUFOHDQLQJDQGPDLQWDLQLQJURSHV
z &OHDQDPXGG\URSHE\ZDVKLQJLWLQZDWHUEXWQRWLQVDOWZDWHU
z 'RQRWSXOODURSHRYHUVKDUSHGJHV3ODFHOD\HUVRIKHDY\FORWKRUJUDVVEHWZHHQWKHURSHDQGDQ\
VKDUSHGJHWRSUHYHQWFXWWLQJILEHUV
z 'RQRWGUDJVWHSRQRUGULYHRYHUDURSHODLGRQVDQGRUGLUW
z .HHSDURSHGU\,ILWJHWVZHWGU\LWDVVRRQDVSRVVLEOHWRSUHYHQWURWWLQJ$PLOGHZHGURSHKDV
DPXVW\RGRUDQGLQQHUILEHUVKDYHDGDUNVWDLQHGORRN
z 'RQRWOHDYHDURSHNQRWWHGRUWLJKWO\VWUHWFKHGDQ\ORQJHUWKDQQHHGHG
z 1HYHUVSOLFHDFOLPELQJRUUDSSHOOLQJURSH
z ,QVSHFWDURSHRIWHQERWKWKHRXWVLGHDQGWKHLQVLGH8QWZLVWDIHZVWUDQGVDWGLIIHUHQWSRLQWV WR
RSHQWKHURSHWRFKHFNWKHLQVLGH
z $YRLGW\LQJQ\ORQURSHLQVXFKDZD\WKDWFDXVHVURSHWRURSHIULFWLRQ1\ORQURSHEXUQVZKHQLW
UXEVDJDLQVWRWKHUQ\ORQURSHV0HOWHGQ\ORQDQGGDUNVWUHDNVLQGLFDWHEXUQV
z &KHFNWKHURSHIRUGLUWDQGVDZGXVWOLNHPDWHULDOLQVLGH7KHVHLQGLFDWHURSHGDPDJH
z &KHFNDURSHLQGLIIHUHQWSODFHVDQ\ZHDNSRLQWLQLWZHDNHQVWKHHQWLUHURSH
z 'HVWUR\RUFXWXSURSHVGHHPHGXQVDIH7KLVSUHYHQWV6ROGLHUV0DULQHVIURPXVLQJWKHURSHIRU
KRLVWLQJRUUDSSHOOLQJ7URRSVFDQXVHVKRUWSLHFHVIRUWRJJOHURSHVDQGIRURWKHUSXUSRVHVWKDWGR
QRWLQYROYHORDGEHDULQJRSHUDWLRQV

.1276
% 6ROGLHUV0DULQHVWUDLQRQWKHIRXUFODVVHVRINQRWV&ODVV,²MRLQLQJNQRWV&ODVV,,²DQFKRUNQRWV
&ODVV,,,²PLGGOHURSHNQRWVDQG&ODVV,9²VSHFLDONQRWV7KHYDULHW\RINQRWVEHQGVELJKWVDQGKLWFKHV
LV DOPRVW HQGOHVV 6ROGLHUV0DULQHV FDQ ORVH NQRW W\LQJ VNLOOV DQG PXVW SUDFWLFH W\LQJ NQRWV WR PDLQWDLQ
SURILFLHQF\ 6HH ILJXUH % IRU H[DPSOHV RI FRPPRQ NQRWV DQG NQRW W\LQJ WHUPV )RU PRUH LQIRUPDWLRQ
UHJDUGLQJ NQRWV DQG WKHLU XVHV 6ROGLHUV UHIHU WR 7&  DQG 0DULQHV UHIHU WR 0&53 $
>0&53&@)RUPRUHLQIRUPDWLRQRQDGGLWLRQDONQRWVDQGGLUHFWLRQVWRWLHWKHPVHH$73

75$9(56,1*9(57,&$/2%67$&/(6
% 9HUWLFDO REVWDFOHV DUH FRPPRQ LQ WKH MXQJOH 0RVW YHUWLFDO REVWDFOHV FRQVLVW RI FOLIIV ULGJHV DQG
UDYLQHVFDXVHGE\ PRXQWDLQV DQGURFNIRUPDWLRQV6ROGLHUV0DULQHV XVHUDSSHOOLQJWHFKQLTXHVWRGHVFHQG
WKHVHREVWDFOHVZKLOHWKH\XVHFOLPELQJWHFKQLTXHVWRDVFHQGYHUWLFDOWHUUDLQ7KHIXQGDPHQWDOVWHFKQLTXHV
DQGHTXLSPHQWXVHGWRUDSSHODQGFOLPELQWKHMXQJOHPLPLFWHFKQLTXHVXVHGLQDQ\RWKHUHQYLURQPHQW

5$33(//,1*
% 5DSSHOOLQJ LV D PHDQV IRU DQ LQGLYLGXDO RU JURXS WRGHVFHQG D YHUWLFDO VXUIDFH TXLFNO\ 5DSSHOOLQJ
UHTXLUHVVSHFLDOL]HGWUDLQLQJDQGHTXLSPHQWIRU6ROGLHUV0DULQHVWRFRQGXFWLWVDIHO\7KUHHPDLQW\SHVRI
UDSSHOV H[LVW KDVW\ ERG\ DQG VHDWKLS UDSSHO )RU GHWDLOHG LQIRUPDWLRQ RQ UDSSHOOLQJ 6ROGLHUV UHIHU WR
7&DQG0DULQHVUHIHUWR0&53$>0&53&@DQG0&53%>0&53$@
% 6ROGLHUV0DULQHVXVHWKHKDVW\UDSSHORQO\RQPRGHUDWHSLWFKHV,WVPDLQDGYDQWDJHLVWKDWLWLVHDVLHU
DQG IDVWHU WKDQ RWKHU PHWKRGV 6ROGLHUV0DULQHV PXVW ZHDU JORYHV WR SUHYHQW URSH EXUQV $ KDVW\ UDSSHO
FRQVLVWVRIW\LQJDURSHWRDQDQFKRUSRLQWDWWKHWRSRIWKHREVWDFOHVXFKDVDWUHHDQGWKHQXVLQJWKHURSHWR
VWHDG\6ROGLHUV0DULQHVDVWKH\ZDONGRZQWKHREVWDFOHEDFNZDUGV

% $730&73& 6HSWHPEHU

 1HJRWLDWLQJ-XQJOH2EVWDFOHV

)LJXUH%&RPPRQNQRWV

% 'XULQJ D ERG\ UDSSHO WKH 6ROGLHU0DULQH UDSSHOOLQJ IDFHV WKH DQFKRU SRLQW DQG VWUDGGOHV WKH URSH
6ROGLHUV0DULQHVWXUQXSWKHLUXQLIRUPFROODUWRSUHYHQWURSHEXUQVRQWKHQHFN7KH\FDQZHDUJORYHVDQG
RWKHUFORWKLQJWRSDGWKHVKRXOGHUVDQGEXWWRFNV 7KH UDSSHOOLQJ 6ROGLHU0DULQHWKHQSXOOVWKH URSHIURP
EHKLQGUXQVLWDURXQGHLWKHU KLSGLDJRQDOO\DFURVVWKHFKHVW DQGEDFNRYHUWKHRSSRVLWHVKRXOGHU)URP
WKHUHWKH URSH UXQVWRWKH EUDNH KDQG ZKLFKLVRQWKHVDPHVLGHRIWKH KLSWKHURSHFURVVHV 5DSSHOOLQJ
6ROGLHUV0DULQHVOHDQRXWDWDVKDUSDQJOHWRWKHURFN7KH\OHDGZLWKWKHEUDNHKDQGGRZQDQGIDFHVOLJKWO\

6HSWHPEHU $730&73& %

$SSHQGL[%

VLGHZD\V7KHIRRWFRUUHVSRQGLQJWRWKHEUDNHKDQGSUHFHGHVWKHJXLGHKDQGDWDOOWLPHV:KLOHUDSSHOOLQJ
6ROGLHUV0DULQHVNHHSWKHJXLGHKDQGRQWKHURSHDERYHWKHPWRJXLGHWKHPVHOYHV²QRWWREUDNHWKHPVHOYHV
7KH\NHHSWKHLUOHJVVSUHDGZHOODSDUWWRVWD\UHODWLYHO\VWUDLJKWIRUODWHUDOVWDELOLW\DQGWKHLUEDFNVWUDLJKWWR
UHGXFHIULFWLRQ7REUDNHWKH6ROGLHU0DULQHUDSSHOOLQJOHDQVEDFNDQGIDFHVGLUHFWO\WRZDUGWKHURFNDUHDVR
HDFKIRRWLVKRUL]RQWDOWRWKHJURXQG
% 7KHVHDWKLSUDSSHOGLIIHUVIURPWKHERG\UDSSHOLQWKDWWKHIULFWLRQLVDEVRUEHGE\DFDUDELQHUWKDWLV
LQVHUWHGLQDVOLQJURSHVHDWDQGIDVWHQHGWRWKH6ROGLHU0DULQHUDSSHOOLQJ7KLVPHWKRGSURYLGHVDIDVWHUDQG
PRUHIULFWLRQDOGHVFHQWWKDQRWKHUPHWKRGV6ROGLHUV0DULQHVFDQXVHWKHVHDWKLSUDSSHOWRH[LWKHOLFRSWHUV

&/,0%,1*
% 6ROGLHUV0DULQHVFOLPE WRQHJRWLDWH YHUWLFDOWHUUDLQWKDWLV WRRVWHHSWR ZDON 7KH\XVHD YDULHW\RI
UHILQHGWHFKQLTXHVWRFOLPEGLIIHUHQWW\SHVRIYHUWLFDOWHUUDLQ0LOLWDU\FOLPELQJWHFKQLTXHVVWUHVVNHHSLQJWKH
ZHLJKW FHQWHUHG RYHU WKH IHHW ZKLOH XVLQJ WKH KDQGV SULPDULO\ IRU EDODQFH 6ROGLHUV0DULQHV FRPELQH WKH
EDODQFHGPRYHPHQWUHTXLUHGWRZDONDWLJKWURSHDQGWKHWHFKQLTXHXVHGWRDVFHQGDODGGHU:KHQWKHWHUUDLQ
LVWRRVWHHSIRUFOLPELQJ6ROGLHUV0DULQHVFDQDVFHQGLWXVLQJURSHGFOLPELQJWHFKQLTXHVVXFKDV3UXVVLF
FOLPELQJZKLFKUHTXLUHVSHFLDOL]HGWUDLQLQJDQGHTXLSPHQW

029,1*$&52665,9(56$1'675($06
% 6ROGLHUV0DULQHVWUDLQRQVHYHUDOH[SHGLHQWZD\VWRFURVVULYHUVDQGVWUHDPV7KHPHWKRGXVHGGHSHQGV
RQWKH ZLGWKDQGGHSWKRIWKH ZDWHUWKHVSHHGRIWKHFXUUHQWWKH WLPHDQGHTXLSPHQW DYDLODEOHDQGWKH
IULHQGO\DQGHQHP\VLWXDWLRQ
% 7KHUHLVDOZD\VDSRVVLELOLW\RIHTXLSPHQWIDLOXUH)RUWKLVUHDVRQHYHU\6ROGLHU0DULQHOHDUQVWRVZLP
,QDOOZDWHUFURVVLQJVOHDGHUVVWDWLRQVHYHUDOVWURQJVZLPPHUVHLWKHUDWWKHZDWHU¶VHGJHRULISRVVLEOHLQ
PLGVWUHDPWRKHOSDQ\RQHZKRJHWVLQWRWURXEOH
% ,I6ROGLHUV0DULQHVDFFLGHQWDOO\IDOOLQWRWKHZDWHUWKH\VKRXOGVZLPZLWKWKHFXUUHQWWRWKHQHDUHU
EDQN6ZLPPLQJDJDLQVWWKHFXUUHQWLVGDQJHURXVEHFDXVHWKHIRUFHRIWKHFXUUHQWTXLFNO\WLUHVWKHVZLPPHU

)25',1*
% )RUGLQJLVD PHWKRGIRUFURVVLQJDVKDOORZERG\RI ZDWHU ZLWKRXWEULGJLQJERDWV IHUULHVRUUDIWV
)RUGLQJZRUNVRQO\DWORFDWLRQVZKHUHWKHFXUUHQWFRPSRVLWLRQRIWKHERWWRPDQGDSSURDFKHVSHUPLWWKH
SDVVDJHRISHUVRQQHODQGYHKLFOHVZKLOHWKHZKHHOVWUDFNVRUIHHWUHPDLQLQFRQWDFWZLWKWKHERWWRPDWDOO
WLPHV
% &RPEDWYHKLFOHVFDQIRUGVKDOORZZHWJDSVWKDWKDYHDOLPLWHGFXUUHQWYHORFLW\DQGVWDEOHEHG)RUGLQJ
NLWV DUH DYDLODEOH IRU VRPH YHKLFOHV WR LQFUHDVH IRUGLQJ GHSWK VXFK DV WKH GHHS ZDWHU IRUGLQJ NLW IRU WKH
0DULQH&RUSV¶0$WDQN)RUGLQJLVSRVVLEOHIRUFXUUHQWYHORFLWLHVWKDWDUHOHVVWKDQILYHIHHWPHWHUV
SHUVHFRQG,IIRUGLQJDULYHUEHGWKHVLWHPXVWEHILUPDQGIUHHRUODUJHURFNVRURWKHUREVWUXFWLRQV9HKLFOHV
FDQQRWIRUGDWVLWHVZLWKVWHHSEDQNV$GGLWLRQDOO\FRQGLWLRQVDWYHKLFOHIRUGLQJVLWHVJHQHUDOO\GHWHULRUDWH
WKHPRUHIRUFHVXVHWKHP(QJLQHHUVPD\QHHGWREXLOGQHZRUUHLQIRUFHKHDYLO\XVHGIRUGLQJVLWHV9HKLFOH
WHFKQLFDO PDQXDOV FRQWDLQ VSHFLILF GHSWK FDSDELOLWLHV DQG UHTXLUHG DGDSWDWLRQV IRU YHKLFOHV )RU PRUH
LQIRUPDWLRQRQYHKLFOHIRUGLQJVHH$730&73$>0&:3@
% *RRGIRUGLQJVLWHVKDYHWKHIROORZLQJFKDUDFWHULVWLFV
z &RQFHDOPHQWRQERWKEDQNVIRUGLVPRXQWHGWURRSV
z 3DWKVRUURDGVDSSURDFKLQJWKHIRUGLQJVLWHIRUYHKLFOHV
z )HZODUJHURFNVLQWKHULYHUEHG6XEPHUJHGODUJHURFNVDUHXVXDOO\VOLSSHU\DQGPDNHLWGLIILFXOW
WRPDLQWDLQIRRWLQJ5RFNVFDQDOVRFDXVHDIRUGLQJYHKLFOHWRWKURZDWUDFN
z 6KDOORZZDWHURUDVDQGEDULQWKHPLGGOHRIWKHVWUHDP7URRSVPD\UHVWRUUHJDLQWKHLUIRRWLQJRQ
WKHVHVDQGEDUV
z /RZEDQNVWRPDNHHQWU\DQGH[LWHDVLHU+LJKEDQNVQRUPDOO\PHDQGHHSZDWHU'HHSZDWHUQHDU
WKHIDUVKRUHLVHVSHFLDOO\GDQJHURXVDVWKHWURRSVPD\EHWLUHGDQGOHVVDEOHWRJHWRXW
z $VROLGERWWRP9HKLFOHVDQGSHUVRQQHOPD\EHFRPHVWXFNLQVRIWRUPXGG\ULYHUEHGV

% $730&73& 6HSWHPEHU

 1HJRWLDWLQJ-XQJOH2EVWDFOHV

% ,QGLYLGXDOIRUGLQJLVFRQGXFWHGDWDVOLJKWDQJOHDJDLQVWWKHFXUUHQW6ROGLHUV0DULQHVVKRXOGNHHSWKHLU
IHHWZLGHDSDUWDQGGUDJWKHLUOHJVWKURXJKWKHZDWHUQRWOLIWWKHPVRWKDWWKHFXUUHQWZLOOQRWWKURZWKHPRII
EDODQFH6ROGLHUV0DULQHVFDQXVHSROHVWRSUREHDVWKH\ZDONWRKHOSILQGGHHSKROHVDQGPDLQWDLQIRRWLQJ

)/2$7$7,21$,'6
% 7URRSVFDQXVHIORDWDWLRQDLGVWRWUDYHUVHGHHSHUVWUHDPVWKDWODFNDVWURQJFXUUHQW7KH\FDQPRGLI\
WKHLUVWDQGDUGLVVXHHTXLSPHQWDQGHOHPHQWVIRXQGLQWKHMXQJOHHQYLURQPHQWWRFRQVWUXFWHIIHFWLYHIORDWDWLRQ
DLGV6ROGLHUV0DULQHVFDQXVHWKHLUWURXVHUVSRQFKRDQGRWKHUHTXLSPHQWWRFRQVWUXFWIORDWDWLRQDLGV

7URXVHUV
% 6ROGLHUV0DULQHVXVHWKHLUWURXVHUVDVIORWDWLRQGHYLFHV7KH\UHPRYHDQGSUHSDUHWURXVHUVE\W\LQJWKH
ERWWRPVRIWKHOHJVWLJKWO\7KH\HQWHUWKHZDWHUWRZDLVWGHSWKDQGKROGWKHWURXVHUVEHKLQGWKHVKRXOGHUV
ZLWKWKHZDLVWRSHQ%ULQJWKHWURXVHUVTXLFNO\RYHUWKHLUKHDGDQGEDQJWKHPLQWRWKHZDWHULQIURQWILOOLQJ
WKHP ZLWK DLU 6TXHH]H DQG KROG WKH ZDLVW WRJHWKHU WR SUHYHQW WKH HVFDSH RI WKH WUDSSHG DLU DQG XVH WKH
EXR\DQF\RIWKHWURXVHUVWRIORDW

3RQFKR/LIH%HOW
% 6ROGLHUV0DULQHVXVHWKHLUSRQFKRDVDEHOW7KH\UROOJUHHQYHJHWDWLRQWLJKWO\LQVLGHDSRQFKRDQGIROG
WKHHQGVRYHUWRPDNHDZDWHUWLJKWOLIHEHOW7KHQWKH\UROOWKHSRQFKRLQWRDF\OLQGHUDWOHDVWLQFKHVLQ
GLDPHWHUDQGWLHLW7KH\ZHDULWDURXQGWKHZDLVWRUDFURVVRQHVKRXOGHUDQGXQGHUWKHRSSRVLWHDUPOLNHD
EDQGROHHU

3RQFKR%UXVK5DIW
% 6ROGLHUV0DULQHVXVHWKHLUSRQFKRVWREXLOGDUDIW7KH\XVHWKHVHVWHSVWRFRQVWUXFWDSRQFKREUXVK
UDIWUHIHUWRILJXUH%
z 8VLQJWZRSRQFKRVWLHWKHQHFNRIHDFKWLJKWO\E\XVLQJWKHGUDZVWULQJ
z 6SUHDGRQHSRQFKRRQWKHJURXQGZLWKWKHKRRGXSVRWKDWLWZLOOHQGXSLQVLGHWKHUDIW
z &XWIUHVKJUHHQEUXVKDYRLGWKLFNEUDQFKHVRUZRRGVWDNHVDQGSLOHLWRQWKHSRQFKRWRDKHLJKW
RILQFKHV
z 3ODFHDQ;IUDPHPDGHRIVPDOOVDSOLQJV²WRLQFKHVWRFHQWLPHWHUVLQGLDPHWHUDQG
 WR  IHHW  WR  PHWHUV ORQJ²RQ WKH EUXVK $QFKRU WKLV IUDPH E\ W\LQJ WKH SRQFKR¶V
GUDZVWULQJWRWKHFHQWHURIWKH;IUDPH
z 3LOHDQRWKHULQFKHVFHQWLPHWHUVRIEUXVKRQWRSRIWKH;IUDPH
z &RPSUHVVWKHEUXVKVOLJKWO\DQGIROGXSWKHSRQFKR7LHURSHVRUYLQHVGLDJRQDOO\DFURVVWKHFRUQHU
JURPPHWVDQGVWUDLJKWDFURVVIURPVLGHJURPPHWV7KHVLGHVRIWKHSRQFKRVKRXOGQRWWRXFK
z 6SUHDGWKHVHFRQGSRQFKRRQWKHJURXQGZLWKKRRGXSQH[WWRWKHEXQGOHPDGHRIWKHILUVWSRQFKR
DQGEUXVK5ROOWKHEXQGOHRYHURQWRWKHFHQWHURIWKHVHFRQGSRQFKRDQGWLHWKHVHFRQGSRQFKR
DFURVVWKHVLGHVDQGGLDJRQDOO\DFURVVWKHFRUQHUV7KLVUDIWZLOOVDIHO\IORDWSRXQGVNLORV
DQGLVYHU\VWDEOH

)LJXUH%3RQFKREUXVKUDIW

6HSWHPEHU $730&73& %

$SSHQGL[%

$XVWUDOLDQ3RQFKR5DIW
% :KHQWKHUHLVQRWHQRXJKWLPHWRJDWKHUDORWRIEUXVK6ROGLHUV0DULQHVXVHWKHLUSRQFKRVWREXLOGDQ
$XVWUDOLDQSRQFKRUDIW,WXVHVD6ROGLHU¶V0DULQH¶VFRPEDWHTXLSPHQWIRUEXONDQGEXR\DQF\1RUPDOO\WZR
WURRSVPDNHWKLVUDIWWRJHWKHU,WLVPRUHZDWHUSURRIWKDQWKHSRQFKREUXVKUDIWEXWZLOOIORDWRQO\DERXW
SRXQGVRIZHLJKWUHIHUWRILJXUH%6ROGLHUV0DULQHVXVHWKLVUDIWWRPRYHWKHLUHTXLSPHQWDQGQRWULGH

)LJXUH%$XVWUDOLDQSRQFKRUDIW

% 7RFRQVWUXFWDQ$XVWUDOLDQSRQFKRUDIW²
z 3ODFHRQHSRQFKRRQWKHJURXQGZLWKWKHKRRGIDFLQJXS&ORVHWKHQHFNRSHQLQJE\W\LQJLWRII
ZLWKWKHGUDZVWULQJ
z 3ODFHWZRSROHVRUEUDQFKHVDERXWWRLQFKHVWRFHQWLPHWHUVLQGLDPHWHUDQGIHHW
PHWHUVORQJLQWKHFHQWHURIWKHSRQFKRDERXWLQFKHVFHQWLPHWHUVDSDUW
z 1H[WSODFHWKHUXFNVDFNDQGDQ\RWKHUHTXLSPHQWGHVLUHGEHWZHHQWKHSROHV
z 6QDSWKHSRQFKRWRJHWKHU+ROGWKHVQDSSHGSRUWLRQRIWKHSRQFKRLQWKHDLUDQGUROOLWWLJKWO\
GRZQWRZDUGWKHHTXLSPHQW5ROOIURPWKHFHQWHURXWWRERWKHQGV$WWKHHQGVWZLVWWKHSRQFKR
WRIRUP³SLJWDLOV´)ROGWKHSLJWDLOVLQZDUGWRZDUGHDFKRWKHUDQGWLHWKHPWLJKWO\WRJHWKHUZLWK
ERRWODFHVYLQHVFRPPXQLFDWLRQVZLUHRURWKHUDYDLODEOHPDWHULDO

% $730&73& 6HSWHPEHU

 1HJRWLDWLQJ-XQJOH2EVWDFOHV

z 6SUHDGWKHVHFRQGSRQFKRRQWKHJURXQGQHFNFORVHGDQGIDFLQJXS
z 3ODFH WKH HTXLSPHQW EXQGOH IRUPHG ZLWK WKH ILUVW SRQFKR ZLWK WKH VHDP WLHG SLJWDLOV IDFLQJ
GRZQRQWKHVHFRQGSRQFKR
z 5ROODQGWLHWKHVHFRQGSRQFKRLQWKHVDPHPDQQHUDVWKHILUVW
z $QHPSW\FDQWHHQWLHGWRRQHHQGRIDURSHZLWKWKHRWKHUHQGWLHGWRWKHUDIWKHOSVLQWRZLQJ2QH
6ROGLHU0DULQHSXOOVRQWKHURSHZKLOHWKHRWKHUSXVKHVWKHUDIW3ODFHZHDSRQVRQWRSRIWKHUDIW
DQGVHFXUHWKHPZLWKURSHV7KH\VHFXUHWKHLUZHDSRQVWRWKHUDIWZLWKTXLFNUHOHDVHV7KHUDIWLV
QRZUHDG\IRUWKHZDWHU

Note.:KHQODXQFKLQJDQ\SRQFKRUDIWRUOHDYLQJWKHZDWHUZLWKLWWDNHFDUHQRWWRGUDJLWRQWKH
JURXQGDVWKLVZLOOFDXVHSXQFWXUHVRUWHDUV

:DWHU:LQJV
% 7ZRRUPRUHDLUILOOHGSODVWLFEDJVVHFXUHO\WLHGDWWKHPRXWKFDQEHXVHGDVILHOGH[SHGLHQWZDWHU
ZLQJV2WKHUH[SHGLHQWVLQFOXGHHPSW\ZDWHURUIXHOFDQVDQGDPPXQLWLRQFDQLVWHUV

/RJ5DIW
% 6ROGLHUV0DULQHVXVHORJVHLWKHULQGLYLGXDORUODVKHGWRJHWKHUWRIORDWWURRSVDQGHTXLSPHQW 7KH\
FDUHIXOO\VHOHFWORJVIRUUDIWVDVVRPHMXQJOHWUHHVDUHWRRGHQVHWRIORDW 7KH\FDQFKHFN ZKHWKHUFHUWDLQ
ZRRGLVVXLWDEOHE\SXWWLQJDZRRGFKLSIURPDWUHHLQWKHZDWHU,IWKHFKLSVLQNVVRZLOODUDIWPDGHRIWKDW
ZRRG

5RSH%ULGJHV
% 5RSHEULGJHVZRUNIRUFURVVLQJPRYLQJZDWHU6ROGLHUV0DULQHVXVHWKHPWRTXLFNO\FURVVVWUHDPVDQG
VPDOOULYHUVZLWKVWURQJFXUUHQWV%HFDXVHRIWKHVWUHWFKIDFWRURIQ\ORQURSHV6ROGLHUV0DULQHVGRQRWXVH
WKHPWRFURVVJDSVRIPRUHWKDQIHHWPHWHUV6WDWLFURSHVDUHXVHGWRFURVVJDSVODUJHUWKDQIHHW
 PHWHUV  )RU LQIRUPDWLRQ RQ DGGLWLRQDO URSH LQVWDOODWLRQ PHWKRGV VXFK DV IL[HG URSH VXVSHQVLRQ
WUDYHUVH DQG YHUWLFDO KDXOLQJ 6ROGLHUV UHIHU WR 7&  DQG 0DULQHV UHIHU WR 0&53 $
>0&53&@
% 6ROGLHUV0DULQHVIROORZVHYHUDOVWHSVZKHQFRQVWUXFWLQJDURSHEULGJH)LUVWWKH\GHWHUPLQHKRZPXFK
URSHWKH\QHHGWRFURVVWKHREVWDFOH7RPHDVXUHWKHZLGWKRIDOLQHDUREVWDFOHDOVRUHIHUWRILJXUH%RQ
SDJH%²
z 6HOHFWDVWUDLJKWVHFWLRQRIWKHVWUHDP
z 3LFNWZRSRLQWVRSSRVLWHHDFKRWKHU$DQG%
z 6WDQGDW%WXUQLQDGLUHFWLRQSDUDOOHOWRWKHVWUHDPZDONRIISDFHV0DUNWKDWSRLQWDVSRLQW&
%WR& SDFHV
z &RQWLQXHZDONLQJLQWKHVDPHGLUHFWLRQPRUHSDFHV0DUNWKDWSRLQWDVSRLQW'&WR' 
SDFHV
z 7XUQDWDULJKWDQJOHDZD\IURPWKHVWUHDPDQGZDONXQWLO\RXDUHRQOLQHZLWKSRLQWV&DQG$
0DUNWKLVSRLQWDVSRLQW('HWHUPLQHWKHGLVWDQFHEHWZHHQ'DQG(E\FRQYHUWLQJWKHSDFHFRXQW
WRPHWHUV,QWKLVH[DPSOHSDFHLVHTXDOWR IHHWPHWHUDQGWKHSDFHFRXQWLVSDFHV
7KHUHIRUHWKHGLVWDQFHEHWZHHQ'DQG(LVIHHWPHWHUV
z 7KHGLVWDQFHIURP'WR(LVHTXDOWRWKHGLVWDQFHIURP$WR%7KHUHIRUHWKHZLGWKRIWKHVWUHDP
LVDOVRDERXWIHHWPHWHUV

Note.$IWHUGHWHUPLQLQJWKHDSSUR[LPDWHZLGWKRIWKHULYHURUVWUHDPDGGLWLRQDOOHQJWKPXVWEH
DGGHGWRWKHURSHWRDFFRXQWIRUWKHDQFKRU$JHQHUDOJXLGHLVWKDWWKHURSHXVHGWRIDVKLRQWKH
EULGJHVKRXOGEHGRXEOHWKHOHQJWKRIWKHULYHU¶VZLGWKVHHILJXUH%RQSDJH%

6HSWHPEHU $730&73& %

$SSHQGL[%

)LJXUH%'HWHUPLQDWLRQRIULYHUZLGWK

% 7R HUHFW D URSH EULGJH RQH 6ROGLHU0DULQH VZLPV D URSH DFURVV WKH ULYHU RU VWUHDP )LUVW WKH
6ROGLHU0DULQHJHWVDURSHDWOHDVWGRXEOHWKHZLGWKRIWKHVWUHDP7KH6ROGLHU0DULQHDQFKRUVRQHHQGRI
WKHURSHDWSRLQW$DQGZDONVWKHRWKHUHQGRIWKHOLQHXSVWUHDPDVIDUDVLWZLOOJR7KHQWKH6ROGLHU0DULQH
WLHVDVOLQJURSHDURXQGWKHZDLVWRIDVWURQJVZLPPHUDQGXVLQJDVQDSOLQNDWWDFKHVWKHDQFKRUHGURSHWR
WKH6ROGLHU0DULQH7KH6ROGLHU0DULQHVZLPVGLDJRQDOO\GRZQVWUHDPWRWKHIDUEDQNSXOOLQJWKHURSHDFURVV
UHIHUWRILJXUH%

)LJXUH%6ZLPPHUSXOOLQJURSHDFURVV

% $730&73& 6HSWHPEHU

 1HJRWLDWLQJ-XQJOH2EVWDFOHV

2QH5RSH%ULGJH
% 6ROGLHUV0DULQHV FDQ FRQVWUXFW D RQH URSH EULGJH HLWKHU DERYH RU DW ZDWHU OHYHO 7KH EULGJH LV
FRQVWUXFWHGWKHVDPHUHJDUGOHVVRIWKHOHYHO
% 7RFRQVWUXFWDRQHURSHEULGJH²
z 7KH6ROGLHUV0DULQHVSXOOWKHEULGJHURSHDURXQGWKHXSVWUHDPVLGHRIWKHIDUVLGHDQFKRUSRLQW
DQG WHPSRUDULO\ VHFXUH LW ZLWKRXW W\LQJ D NQRW 2Q WKH QHDU VLGH 6ROGLHUV0DULQHV SODFH D
WUDQVSRUWWLJKWHQLQJV\VWHPLQWKHEULGJHURSHE\W\LQJDGRXEOHEXWWHUIO\NQRWDQGSODFLQJWZR
VQDSOLQNVLQWKHEXWWHUIO\7KH\SDVVWKHUXQQLQJHQGRIWKHURSHDURXQGWKHGRZQVWUHDPVLGHRI
WKHQHDUVLGHDQFKRUSRLQWDQGWKURXJKWKHWZRVQDSOLQNV
z :KHQ6ROGLHUV0DULQHVSUHSDUH WKLVWUDQVSRUWWLJKWHQLQJV\VWHP RQH 6ROGLHU0DULQHRQWKH IDU
VLGH SXOOV WKH EXWWHUIO\ NQRW DSSUR[LPDWHO\ D WKLUG RI WKH GLVWDQFH DFURVV WKH ULYHU 7KDW
6ROGLHU0DULQHWKHQVHFXUHVWKHURSHWRWKHIDUVLGHDQFKRUSRLQWXVLQJDURXQGWXUQDQGWZRKDOI
KLWFKHV7URRSVRQWKHQHDUVLGHWKHQSXOOWKHVODFNRXWRIWKHEULGJHURSHXQWLOWKHEXWWHUIO\NQRW
UHWXUQVRQWKHQHDUVLGH7KHEULGJHURSHPXVWEHDVWLJKWDVSRVVLEOHVRWKDWLWZLOOQRWVDJZKHQ
XVHG7KH 6ROGLHUV0DULQHVWLHRIIWKH EULGJHURSHDJDLQVWLWVHOI XVLQJWZR KDOIKLWFKHV ZLWKD
TXLFNUHOHDVHLQWKHODVWKDOIKLWFK
% 6ROGLHUV0DULQHVXVHRQHRIWKHIROORZLQJPHWKRGVWRFURVVDRQHURSHEULGJHDERYHZDWHU
z &RPPDQGRFUDZO/LHRQWKHWRSRIWKHURSHZLWKWKHLQVWHSRIWKHULJKWIRRWKRRNHGRQWKHURSH
/HWWKHOHIWOHJKDQJWRPDLQWDLQEDODQFH3XOODFURVVZLWKWKHKDQGVDQGDUPVDWWKHVDPHWLPH
SXVKLQJRQWKHURSHZLWKWKHULJKWIRRW)RUVDIHW\HDFK6ROGLHU0DULQHWLHVDUDSSHOVHDWDQG
KRRNVWKHVQDSOLQNWRWKHURSHEULGJH
z 0RQNH\FUDZO+DQJVXVSHQGHGEHORZWKHURSHKROGLQJWKHURSHZLWKWKHKDQGVDQGFURVVLQJWKH
NQHHV RYHU WKH WRS RI WKH URSH 3XOO ZLWK WKH KDQGV DQG SXVK ZLWK WKH OHJV )RU VDIHW\ HDFK
6ROGLHU0DULQHWLHVDUDSSHOVHDWDQGKRRNVWKHVQDSOLQNWRWKHURSHEULGJH7KLVLVWKHVDIHVWDQG
WKHEHVWZD\WRFURVVWKHRQHURSHEULGJH
% 7RFURVVDRQHURSHEULGJHDWZDWHUOHYHO6ROGLHUV0DULQHVKROGRQWRWKHURSHZLWKERWKKDQGVIDFH
XSVWUHDPDQGZDONLQWRWKHZDWHU7KH\FURVVWKHEULGJHE\VOLGLQJDQGSXOOLQJWKHKDQGVDORQJWKHURSH
)RUVDIHW\HDFK6ROGLHU0DULQHWLHVDVOLQJURSHDURXQGWKHLUZDLVWOHDYLQJDZRUNLQJHQGRIDERXWWR
IHHW>WRPHWHUV@7KH6ROGLHU0DULQHWLHVDERZOLQHLQWKHZRUNLQJHQGDQGDWWDFKHVDVQDSOLQNWRWKH
ORRS7KHQWKH6ROGLHU0DULQHKRRNVWKHVQDSOLQNWRWKHURSHEULGJH

7ZR5RSH%ULGJH
% &RQVWUXFWLRQRIDWZRURSHEULGJHUHVHPEOHVWKDWRIWKHRQHURSHEULGJHH[FHSWLWXVHVWZRURSHV²D
KDQGURSHDQGDIRRWURSH6ROGLHUV0DULQHVVSDFHWKHVHURSHVDERXWIHHWPHWHUVDSDUWYHUWLFDOO\DWWKH
DQFKRUSRLQWV)RUDGGHGVDIHW\WKH\VQDSOLQNDWWDFKPHQWVWRWKHKDQGURSHIURPDURSHWLHGDURXQGWKH
ZDLVW7KH\PRYHDFURVVWKHEULGJHXVLQJWKHVQDSOLQNWRDOORZWKHVDIHW\URSHWRVOLGH7RNHHSWKHURSHVD
XQLIRUP GLVWDQFH DSDUW DV WURRSV FURVV WKH\ WLH VSUHDGHU URSHV EHWZHHQ WKH WZR URSHV HYHU\  IHHW 
PHWHUV$VWURRSVPRYHDORQJWKHWZRURSHEULGJHWKH\ZLOOKDYHWRUHPHPEHUWRGLVFRQQHFWDQGUHFRQQHFW
WKHLUVDIHW\URSHDWHDFKVSUHDGHUURSH6ROGLHUV0DULQHVWLHDVOLQJURSHWRHDFKEULGJHURSHZLWKDURXQGWXUQ
DQGWZRKDOIKLWFKHV

2WKHU&URVVLQJ0HWKRGV
% 6ROGLHUV0DULQHV FDQ XVH VXVSHQVLRQ WUDYHUVHV EULGJHV DQG FDEOHZD\V WR PRYH ODUJH QXPEHUV RI
WURRSVRUKHDY\HTXLSPHQWRYHUZLGHULYHUVDQGUDYLQHVRUXSDQGGRZQFOLIIVLQDVKRUWSHULRG%HFDXVH
WKH\ QHHG KHDY\HTXLSPHQWWRFRQVWUXFWWKHVHH[SHGLHQWV VXFKFURVVLQJ PHWKRGVDUHSUDFWLFDORQO\LIWKH
QHHGHGFRQVWUXFWLRQHTXLSPHQWFDQEHWUDQVSRUWHGWRWKHVLWHE\DLUFUDIWRURWKHUWUDQVSRUWDWLRQDVVHWVVXFK
DVPRWRUYHKLFOHVZDWHUFUDIWRUSDFNDQLPDOV

527$5<:,1*$1'7,/75272523(5$7,216
% 0DQ\SODFHVLQWKHMXQJOHKDYHDFDQRS\RUWHUUDLQWKDWZLOOQRWSHUPLWDKHOLFRSWHURUWLOWURWRUDLUFUDIW
WRODQGWRFRQGXFWLQILOWUDWLRQRUH[ILOWUDWLRQRIWURRSV2WKHUWHFKQLTXHVDQGHTXLSPHQWVXFKDVUDSSHOOLQJ

6HSWHPEHU $730&73& %

$SSHQGL[%

VSHFLDOSDWUROLQVHUWLRQH[WUDFWLRQV\VWHPFRPPRQO\UHIHUUHGWRDV63,(6IDVWURSHLQVHUWLRQDQGH[WUDFWLRQ

V\VWHPFRPPRQO\UHIHUUHGWRDV)5,(6D-DFRE¶VODGGHUFDUJRQHWVDQGMXQJOHSHQHWUDWRUVFDQEHXVHGWR
FRQGXFWLQILOWUDWLRQDQGH[ILOWUDWLRQ6SHFLDOHTXLSPHQWDQGWUDLQLQJLVUHTXLUHGIRUHDFKRIWKHVHWHFKQLTXHV
PDQ\ RI ZKLFK DUH XVHG RQO\ E\ 62) 6ROGLHUV UHIHU WR $73  IRU GHWDLOHG LQIRUPDWLRQ RQ WKHVH
WHFKQLTXHV 0DULQHV UHIHU WR 0&53 % >0&53 $@ IRU KHOLFRSWHU URSH VXVSHQVLRQ WHFKQLTXHV
RSHUDWLRQV

% $730&73& 6HSWHPEHU

 $SSHQGL[&
,QGLYLGXDO&RPEDW/RDGLQ-XQJOH2SHUDWLRQV

7KLV DSSHQGL[ GLVFXVVHV UXFNVDFNV ,W DOVR GLVFXVVHV ZHLJKWV FDUULHG E\
6ROGLHUV0DULQHV7KHDSSHQGL[FORVHVZLWKDGLVFXVVLRQRIXVLQJUXFNVDFNV

58&.6$&.6
& %HFDXVH GLVPRXQWHG PRYHPHQW LQ WKH MXQJOH RIWHQ SURYHV DUGXRXV DQG SK\VLFDOO\ GHPDQGLQJ
6ROGLHUV0DULQHV FRQILJXUH LQGLYLGXDO ORDGV VR WKH\ GURS RU KLGH WKHLU UXFNVDFNV IRU UHFRYHU\ ODWHU 7KLV
DOORZVWKHPWRPRYHIUHHO\RQSDWURO6ROGLHUV0DULQHVSODFHVRPHHVVHQWLDOLWHPVLQWKHUXFNVDFNGXHWRWKH
H[WHQGHG QDWXUH RI RSHUDWLRQV 7KH\ UHPRYH WKRVH LWHPV ZKHQ WKH VLWXDWLRQ GLFWDWHV 7KH\ DYRLG OHDYLQJ
FRPEDWHVVHQWLDODQGVHQVLWLYHLWHPVLQFDFKHGRUGURSSHGUXFNVDFNV8QLW623VGLFWDWHWKHHTXLSPHQWDQG
LWHPVLQGLYLGXDO6ROGLHUV0DULQHVZHDURUFDUU\ZKDWLWHPVWKH\SDFNLQWKHUXFNVDFNDQGZKDWLWHPVWKH\
FDQFDFKHRUOHDYHEHKLQGIRUVKRUWGXUDWLRQPLVVLRQV8QLWVGLVWULEXWHSDFNLQJOLVWVGHVLJQHGIRUVTXDGVDQG
SODWRRQVZLWKFDUHIXODWWHQWLRQJLYHQWREDODQFLQJORDGV)RUDPRUHGHWDLOHGGLVFXVVLRQRQORDGPDQDJHPHQW
6ROGLHUVUHIHUWR$73

:(,*+7&$55,('
& $V WKH ZHLJKW FDUULHG E\ 6ROGLHUV0DULQHV LQ WKH MXQJOH HQYLURQPHQW LQFUHDVHV WKHLU PLVVLRQ
SHUIRUPDQFH DQG HIIHFWLYHQHVV GHFUHDVHV &DUU\LQJ ZHLJKW RI QRQPLVVLRQ HVVHQWLDO HTXLSPHQW FDQ LPSDLU
PLVVLRQSHUIRUPDQFH7KHFRPPDQGHUWHOOVXQLWVKRZORQJWKH\FDQH[SHFWWRFRQGXFWRSHUDWLRQVZLWKRXW
UHVXSSO\DVVRXQLWVFDQSODQWKHHTXLSPHQWVXSSOLHVDQGDPPXQLWLRQWRFDUU\
& /HDGHUVUHLQIRUFHVSHFLILFFRPSDQ\DQGSODWRRQ623VZLWKLQVSHFWLRQVDQGFKHFNVSULRUWRRSHUDWLRQV
/HDGHUVGHPDQGVWULFWDGKHUHQFHWRSDFNLQJOLVWVZKLOHDFFRXQWLQJIRULQGLYLGXDO6ROGLHU0DULQHSK\VLFDO
DELOLWLHVLQWKHGLVWULEXWLRQRIXQLWHVVHQWLDOHTXLSPHQW1RQFRPPLVVLRQHGRIILFHUVLQFRQMXQFWLRQZLWKWKH
FRPPDQGHULQVSHFWPRQLWRUDQGDGMXVWORDGVDFFRUGLQJWRWKHPLVVLRQYDULDEOHV
& ,QWKHMXQJOHHQYLURQPHQW ZDWHU FRQVWLWXWHVDODUJHSHUFHQWDJHRIDGLVPRXQWHGWURRS¶VORDG8QLWV
LVVXH DQG 6ROGLHUV0DULQHV FDUU\ DGGLWLRQDO ZDWHU VRXUFHV ZKHQ FRQGXFWLQJ RSHUDWLRQV LQ WKH MXQJOH
HQYLURQPHQW:DWHUVRXUFHVLQFOXGHEODGGHUVRUSHUVRQDOK\GUDWLRQV\VWHPVFDSDEOHRIFDUU\LQJXSWRILYHWR
WHQ TXDUWV  OLWHUV RI ZDWHU HVSHFLDOO\ LQ WKH GU\ VHDVRQ 6ROGLHUV0DULQHV DOVR FDUU\ ZDWHU SXULILFDWLRQ
HTXLSPHQWDQGVXSSOLHVLQRUGHUWRVRXUFHSRWDEOHZDWHUUHGXFLQJWKHDPRXQWRIZDWHUWKDWWKH\PXVWFDUU\
DQGWKHQHFHVVLW\RIUHVXSSO\
& $PPXQLWLRQQRUPDOO\PDNHVXSWKHJUHDWHVWSDUWRIHDFKWURRS¶VORDGDQGDPPXQLWLRQVXSSOLHVPXVW
EH SODQQHG WR ODVW XQWLO WURRSV FDQ EH UHVXSSOLHG 8QLWV HVWDEOLVK SUHFRQILJXUHG KHOLFRSWHU DQG WLOWURWRU
FDSDEOH ORDGV RI DPPXQLWLRQ EDVHG XSRQ WKH PLVVLRQ YDULDEOHV LQ WKH VXSSRUW DUHD IRU HPHUJHQF\ RU
LPPHGLDWHUHVXSSO\RIGLVPRXQWHGHOHPHQWV(YHU\6ROGLHU0DULQHVKRXOGFDUU\FRORUHGVPRNHJUHQDGHVDQG
IODUHVIRUVLJQDOLQJ7KHXQLWDOVRGLVWULEXWHVWULSIODUHVDQGFOD\PRUHPLQHVIRUVHFXULW\6SHFLDODPPXQLWLRQ
LQFOXGLQJPRUWDUURXQGVH[SORVLYHDQGOHVVWKDQOHWKDOPXQLWLRQVPXVWDOVREHDFFRXQWHGIRU

86(2)7+(58&.6$&.
& 6PDOOXQLWVFRQGXFWLQJRIIHQVLYHRSHUDWLRQVLQMXQJOHWHUUDLQRIWHQQHHGWREHVHOIUHOLDQWIRUH[WHQGHG
SDWUROVDQGORQJGXUDWLRQPLVVLRQV8QLWVURXWLQHO\SODQWRRSHUDWHIRUILYHWRVHYHQGD\VZLWKRXWUHVXSSO\
FDUU\LQJ ZKDW WKH\ QHHG LQ UXFNVDFNV 7KLV LQGHSHQGHQFH LV D IRUP RI VHFXULW\ LW PLWLJDWHV WKH ULVN WKDW
IUHTXHQW UHVXSSO\ ZLOO EHWUD\ WKH XQLW¶V ORFDWLRQ ,W DOVR HQDEOHV WKH XQLW WR FRQGXFW WKH H[WHQGHG SDWUROV
UHTXLUHG GXULQJ D PRYHPHQW WR FRQWDFW 6HOIUHOLDQFH DOVR ORZHUV WKH GHPDQG RQ VXVWDLQPHQWORJLVWLFV
HOHPHQWVDQGDVVRFLDWHGLQIUDVWUXFWXUH

6HSWHPEHU $730&73& &

$SSHQGL[&

& 7R PLQLPL]H WKH ZHLJKW RI UXFNVDFNV FRPPDQGHUV FDUHIXOO\ DQDO\]H WKH PLVVLRQ DQG HQVXUH
6ROGLHUV0DULQHV FDUU\ QRWKLQJ EXW HVVHQWLDO HTXLSPHQW /HDGHUV GLVWULEXWH GHWDLOHG SDFNLQJ OLVWV DQG
FRPSOHWHWKRURXJKLQVSHFWLRQVSULRUWRDPLVVLRQHQVXULQJ6ROGLHUV0DULQHVFDUU\RQO\HVVHQWLDOLWHPVDQG
HTXLSPHQW
& $OWKRXJKLWPD\EHEH\RQGWKHLUFRQWUROFRPPDQGHUVFRQGXFWLQJGLVPRXQWHGRIIHQVLYHRSHUDWLRQV
DWWHPSWWRDYRLGFORVHFRPEDWZKLOHWKHLUWURRSVDUHXQGHUORDG/HDGHUVGHYHORS623VDQGLQGLYLGXDOORDG
SODQVWRHQVXUHWKDW6ROGLHUV0DULQHVFDUU\DOOFRPEDWHTXLSPHQWVXFKDVDPPXQLWLRQDQGILUVWDLGNLWVRQ
WKHLUSHUVRQDQGQRWSDFNHGLQWKHUXFNVDFN7KLVHQDEOHVXQLWVWRJURXQGRUFDFKHWKHLUUXFNVDFNVUDSLGO\
ZLWKRXW GHJUDGLQJ FRPEDW HIIHFWLYHQHVV $ XQLW PRYHV IURP SRLQW WR SRLQW ZLWK UXFNVDFNV RQ DQG WKHQ
UHPRYHVDQGVHFXUHVWKHPDWWKHREMHFWLYHUDOO\SRLQWEHIRUHHQJDJLQJLQFORVHFRPEDW
& :KHQ WURRSV PDNH XQH[SHFWHG FRQWDFW ZLWK WKH HQHP\ VXFK DV GXULQJ D PHHWLQJ HQJDJHPHQW
6ROGLHUV0DULQHVLPPHGLDWHO\GURSWKHLUUXFNVDFNVDQGH[HFXWHDFWLRQVRQFRQWDFWDVWKH\UHKHDUVHGLQWKHLU
EDWWOH GULOOV ,I WKH HQHP\ GULYHV WKH WURRSV WR ZLWKGUDZ DQG DEDQGRQ WKHLU UXFNVDFNV XSRQ UHWXUQ
6ROGLHUV0DULQHV LQVSHFW WKHLU HTXLSPHQW IRU ERRE\ WUDSV DQG ,('V 7KH\ DOVR SUHSDUH IRU DQ DPEXVK RU
DWWDFNDWWKHVLWH
& 2Q VKRUW GXUDWLRQ PLVVLRQV  KRXUV RU OHVV 6ROGLHUV0DULQHV XVH DVVDXOW SDFNV RU VLPLODU
HTXLSPHQWLQVWHDGRIFDUU\LQJUXFNVDFNV7KLVPHWKRGLPSURYHVPRELOLW\DQGVSHHGZKLOHUHGXFLQJQRLVH
3ODWRRQVDQGVTXDGVRSHUDWLQJRXWRIDSDWUROEDVHIRUVKRUWGXUDWLRQPLVVLRQVFRQVROLGDWHDQGFRQFHDOWKHLU
UXFNVDFNVDWWKHSDWUROEDVHEHIRUHPRYLQJRXW7KHRQO\WLPH6ROGLHUV0DULQHVFDUU\UXFNVDFNVLVZKHQWKH
PLVVLRQGRHVQRWFDOOIRUDUHWXUQWRWKHSDWUROEDVH,IWKHXQLWPXVWEUHDNFRQWDFWDQGFDQQRWIHDVLEO\UHWXUQ
WRWKHLUSDWUROEDVHWKH\PXVWLQVSHFWDOOHTXLSPHQWIRUERRE\WUDSV,('VDQGPLQHVZKHQWKH\HYHQWXDOO\
UHWXUQ
& /HDGHUVGHOLEHUDWHO\VHOHFWFDFKHVLWHVIRUUXFNVDFNVHTXLSPHQWDQGVXSSOLHV8QLWVLGHQWLI\DQHDVLO\
UHFRJQL]DEOHWHUUDLQIHDWXUHDQGIURPWKDWGHWHUPLQHDGLVWDQFHDQGD]LPXWKWRHVWDEOLVKWKHDFWXDOFDFKH
VLWH(IIHFWLYHVLWHVDYRLGQDWXUDOOLQHVRIGULIWDQGREYLRXVWUDLOVLQWRFDFKHVLWHV,QWKHHYHQWDXQLWFDQQRW
UHWXUQWRWKHFDFKHVLWH6ROGLHUV0DULQHVUHPRYHDQGDGGLWHPVWKH\ZLOOQHHGLQWRWKHLULQGLYLGXDOFRPEDW
ORDG
& &DFKHG UXFNVDFNV KDYH QDWXUDO FDPRXIODJH IRU FRQFHDOPHQW 8QLWV FDQ GLJ SLWV DQG EXU\ WKHLU
UXFNVDFNVVRORQJDVWKH\FDQUHWXUQWKHDUHDWRLWVQDWXUDOVWDWHZKHQWKHEXU\LQJLVFRPSOHWH7KHHTXLSPHQW
FDFKHG VKRXOG EH DUUDQJHG LQ VXFK D PDQQHU WKDW 6ROGLHUV0DULQHV FDQ HDVLO\ GHWHUPLQH LI DQ\RQH KDV
WDPSHUHG ZLWK WKH HTXLSPHQW :KHQ UHWXUQLQJ WR FDFKH VLWHV WR UHFRYHU UXFNVDFNV OHDGHUV LQVSHFW WKH
HTXLSPHQWIRUERRE\WUDSVPLQHVDQG,('VEHIRUHDOORZLQJ6ROGLHUV0DULQHVWRGLVWXUE LW7KLVKHOSVLQ
SUHYHQWLQJ FDVXDOWLHV IURP ERRE\ WUDSV DQG PLQHV 7URRSV DYRLG JURXSLQJ DURXQG WKH HTXLSPHQW ZKHQ
UHFRYHULQJLW8QLWVPDLQWDLQVHFXULW\DWDOOWLPHVZKLOHUHGLVWULEXWLQJWKHUXFNVDFNV
& 5XFNVDFNV DUH H[SHQGDEOH ,Q DOO VLWXDWLRQV SURSHUO\ SDFNHG UXFNVDFNV FRQWDLQ QRQHVVHQWLDO LWHPV
/HDGHUVWDLORULQGLYLGXDOFRPEDWORDGVVRWKDWWKHORVVRIDOOUXFNVDFNVZRXOGQRWUHVXOWLQPLVVLRQIDLOXUH

& $730&73& 6HSWHPEHU

 $SSHQGL['
7HFKQLTXHVIRU)UDWULFLGH5HGXFWLRQLQWKH-XQJOH

7KHGHQVHIROLDJHRIWHQLQGLVWLQJXLVKDEOHWHUUDLQIHDWXUHVDQGQRQFRQWLJXRXVQDWXUH
RIMXQJOHRSHUDWLRQVPDNHLWGLIILFXOWWRGLVWLQJXLVKEHWZHHQHQHP\DQGIULHQGO\IRUFHV
&RPPDQGHUV PLWLJDWH WKH LQFUHDVHG ULVN RI IUDWULFLGH WKURXJK FRPSUHKHQVLYH ULVN
PDQDJHPHQW WKH DSSURSULDWH EDODQFH RI FRPPDQG DQG FRQWURO DQG E\ HQVXULQJ D
VKDUHG FRPPRQ RSHUDWLRQDO SLFWXUH DFURVV HFKHORQV DQG IRUPDWLRQV7KLV DSSHQGL[
SUHVHQWVIUDWULFLGHSUHYHQWLRQPHDVXUHVDQGULVNFRQVLGHUDWLRQVWRDVVLVWFRPPDQGHUV
ZLWKIUDWULFLGHPLWLJDWLRQ

)5$75,&,'(5('8&7,21
' Fratricide LV WKH XQLQWHQWLRQDO NLOOLQJ RU ZRXQGLQJ RI IULHQGO\ RU QHXWUDO SHUVRQQHO E\ IULHQGO\
ILUHSRZHU$'3/LNHRWKHUULVNVFRPPDQGHUVXVHWKHULVNPDQDJHPHQWSURFHVVWRLGHQWLI\IUDWULFLGH
KD]DUGVDQGWKHQGHYHORSDQGLPSOHPHQWFRQWUROV6HH$73IRUGHWDLOHGLQVWUXFWLRQVRQLQWHJUDWLQJWKH
ULVNPDQDJHPHQWSURFHVVLQWRRSHUDWLRQV

0$*1,78'(2)7+(352%/(0
' 7KHSDFHRIFRQWHPSRUDU\FRPEDWLVUDSLGDQGWKHQRQFRQWLJXRXVQDWXUHRIMXQJOHRSHUDWLRQVFUHDWHV
FRPPDQG DQG FRQWURO FKDOOHQJHV IRU OHDGHUV DW DOO HFKHORQV :LWK QXPHURXV VPDOO XQLWV FRQGXFWLQJ
PRYHPHQWVWRFRQWDFWRURWKHUSDWUROVWKHULVNRIDXQLWJHWWLQJORVWDQGHQJDJLQJDIULHQGO\XQLWLQFUHDVHV
GXULQJMXQJOHRSHUDWLRQV7KLVLVDJJUDYDWHGE\WKHFRPPXQLFDWLRQVFKDOOHQJHVDVVRFLDWHGZLWKGLVPRXQWHG
WURRSV RSHUDWLQJ DFURVV UHVWULFWLYH WHUUDLQ 7KHVH VPDOO XQLWVRIWHQ ODFN WKH UHGXQGDQW DQG PRUH SRZHUIXO
FRPPXQLFDWLRQV HTXLSPHQW RI PRXQWHG IRUFHV DQG WKH\ PD\ IUHTXHQWO\ H[SHULHQFH SHULRGV RI GLIILFXOW\
HVWDEOLVKLQJFRPPXQLFDWLRQVZLWKDGMDFHQWXQLWVDQGKLJKHUKHDGTXDUWHUV7KHULVNRIIUDWULFLGHLVIXUWKHU
FRPSRXQGHGE\WKHQDWXUHRIFRPEDWLQWKHMXQJOH&KDUDFWHUL]HGE\XQH[SHFWHGHQJDJHPHQWVDWFORVHUDQJHV
XQLWVFDQHDVLO\PLVWDNHDIULHQGO\SDWUROIRUWKDWRIWKHHQHP\,GHQWLILFDWLRQLVPDGHPRUHGLIILFXOWE\WKH
MXQJOH¶VWKLFNIROLDJHDQGWKHLPSDFWRIHQYLURQPHQWDOREVFXUDQWVVXFKDVIRJ

5($&7,1*72)5$75,&,'(,1&,'(176
' 6PDOOXQLWVDQGSDWUROVHQJDJHGE\IULHQGO\ILUHWDNHWKHIROORZLQJVWHSV
z 5HDFWWRFRQWDFWXQWLOLWLVUHFRJQL]HGDVIULHQGO\ILUH
z &HDVHILUH
z ,GHQWLI\VHOIDQGDWWHPSWWRPDNHYHUEDOFRQWDFWZLWKWKHIULHQGO\XQLW
z 8VHDYLVXDOUHFRJQLWLRQVLJQDOVXFKDVVPRNHWRLGHQWLI\VHOIDVIULHQGO\8QLWVVWDQGDUGL]HYLVXDO
UHFRJQLWLRQVLJQDOVSHU623
z 5HSRUWRQWKHKLJKHUKHDGTXDUWHUVQHW²
ƒ 8QLWORFDWLRQ
ƒ 'LVWDQFHDQGGLUHFWLRQRILQFRPLQJILUH
z 3URWHFW6ROGLHUV0DULQHVDQGUHTXHVWPHGLFDODVVLVWDQFHDVQHHGHG

' 8QLWVWKDWPLVWDNHQO\HQJDJHIULHQGO\IRUFHVWDNHWKHIROORZLQJDFWLRQV
z &HDVHILUH
z ,GHQWLI\VHOIDQGDWWHPSWWRPDNHYHUEDOFRQWDFWZLWKWKHIULHQGO\XQLW
z 8VHYLVXDOUHFRJQLWLRQVLJQDOVXFKDVVPRNHWRLGHQWLI\VHOIDVIULHQGO\

6HSWHPEHU $730&73& '

$SSHQGL['

z 5HSRUWRQKLJKHUKHDGTXDUWHUVQHW²
ƒ 8QLWORFDWLRQ
ƒ (VWLPDWHGORFDWLRQRIHQJDJHGXQLW
ƒ 7KHW\SHRIILUH
ƒ 7KHWDUJHWHIIHFWV
z $IWHULGHQWLI\LQJVHOIDVIULHQGO\DQGUHFHLYLQJFRQILUPDWLRQIURPRWKHUXQLWDWWHPSWWRDVVLVWWKH
XQLWZLWKWDFWLFDOFDVXDOW\FDUHVHFXULW\DQGFDVXDOW\HYDFXDWLRQV
' 8QLWVWKDWREVHUYHDIULHQGO\ILUHLQFLGHQWWDNHWKHIROORZLQJDFWLRQV
z 6HHNFRYHUDQGSURWHFWVHOI
z 5HSRUWRQKLJKHUKHDGTXDUWHUVQHW²
ƒ 7KHORFDWLRQVRIERWKXQLWV
ƒ 7KHORFDWLRQRIWKHLQFLGHQW
ƒ 7KHGLVWDQFHDQGGLUHFWLRQEHWZHHQHQJDJHGXQLWV
ƒ 7KHW\SHRIILUH
ƒ 7KHWDUJHWHIIHFWV
z (VWDEOLVKFRPPXQLFDWLRQVZLWKHQJDJHGXQLWVDQGLGHQWLI\VHOIDVIULHQGO\
z 8VHYLVXDOUHFRJQLWLRQVLJQDOVXFKDVVPRNHWRLGHQWLI\VHOIDVIULHQGO\
z 2QFHLGHQWLILHGDVIULHQGO\SURYLGHDVVLVWDQFHZLWKWDFWLFDOFDVXDOW\FDUHVHFXULW\DQG FDVXDOW\
HYDFXDWLRQV

35(9(17,9(0($685(6
' ,QFRUSRUDWLQJFRPSRVLWHULVNPDQDJHPHQWWRUHGXFHWKHSRWHQWLDOIRUIUDWULFLGHRFFXUVWKURXJKRXWWKH
RSHUDWLRQVSURFHVV7KHIROORZLQJ PHDVXUHVUHGXFHWKHULVNRIIUDWULFLGH DQGDUH LQWHJUDWHGLQWRSODQQLQJ
SUHSDULQJDQGH[HFXWLQJRSHUDWLRQV
z 3ODQQLQJ &RPPDQGHUV LGHQWLI\ DUWLFXODWH DQG LPSOHPHQW IUDWULFLGH FRQWURO PHDVXUHV ZKHQ
SODQQLQJDQRSHUDWLRQ)UDWULFLGHSUHYHQWLRQFRQVLGHUDWLRQVGXULQJSODQQLQJLQFOXGH
ƒ &OHDUO\DUWLFXODWHWKHHQHP\¶VGLVSRVLWLRQDQWLFLSDWHGORFDWLRQDQGPRVWOLNHO\&2$
ƒ ,GHQWLI\HTXLSPHQWDQGXQLIRUPWKDWGLVWLQJXLVKHVWKHHQHP\IURPIULHQGO\IRUFHV
ƒ &OHDUO\GHVLJQDWHVXERUGLQDWHXQLW$2V
ƒ (VWDEOLVKFRQWUROPHDVXUHVWRSUHYHQWXQLWVIURPPLVWDNHQO\HQWHULQJDQDGMDFHQWXQLW¶V$2
ƒ 8VHFOHDUO\LGHQWLILDEOHWHUUDLQIHDWXUHVWRHVWDEOLVK$2VDQGFRQWUROPHDVXUHV
ƒ (VWDEOLVK UHVWULFWLYH )6&0V²VXFK QRILUH DUHDV UHVWULFWLYH ILUH DUHDV DQG UHVWULFWLYH ILUH
OLQHV²WROLPLWILUHVDURXQGIULHQGO\IRUFHV
ƒ (VWDEOLVKDQGEULHIYLVXDODQGDXGLWRU\UHFRJQLWLRQVLJQDOVERWKQHDUDQGIDU8QLWVSUHIHUDEO\
XVHUHFRJQLWLRQVLJQDOVHVWDEOLVKHGE\DFRPPRQ623
ƒ 8VHDJUDSKLFDLGVXFKDVDVDQGWDEOHWRFOHDUO\EULHIWKHPLVVLRQDQGFRQFHSWRIRSHUDWLRQV
ƒ (VWDEOLVKDUHGXQGDQWFRPPXQLFDWLRQVSODQWRLQFOXGHDFRPPRQKLJKHUKHDGTXDUWHUVQHWRU
³VKHULII¶VQHW´
ƒ &OHDUO\EULHIWKH52(
ƒ (VWDEOLVKLQWHUYDOVIRUFRPPXQLFDWLRQVFKHFNVDQGVLWXDWLRQUHSRUWVIURPVXERUGLQDWHXQLWV
z 3UHSDUDWLRQ &RPPDQGHUV LQFRUSRUDWH WKH IROORZLQJ PHDVXUHV WR SUHYHQW RU PLWLJDWH IUDWULFLGH
ZKLOHSUHSDULQJIRUDQRSHUDWLRQ
ƒ &RQGXFWUHKHDUVDOVVXFKDVDFRPELQHGDUPVUHKHDUVDOZLWKDOOVXERUGLQDWHXQLWV
ƒ &RQGXFWUHKHDUVDORQDIXOOVL]HWHUUDLQPRGHOWKDWGHSLFWVDOOFRQWUROPHDVXUHV
ƒ 5HTXLUH VXERUGLQDWH XQLWV WR ZDON DQG WDON WKURXJK WKHLU PRYHPHQWV DQG WDVNV GXULQJ WKH
UHKHDUVDO
ƒ &RQGXFW WKRURXJK FRPPXQLFDWLRQV FKHFNV EHWZHHQ DOO VXERUGLQDWH XQLWV DQG WKH KLJKHU
KHDGTXDUWHUV

' $730&73& 6HSWHPEHU

 7HFKQLTXHVIRU)UDWULFLGH5HGXFWLRQLQWKH-XQJOH

ƒ 5HKHDUVHDFWLRQVWDNHQGXULQJDIULHQGO\ILUHLQFLGHQW
ƒ 5HKHDUVHFDVXDOW\HYDFXDWLRQVDQG0('(9$&SURFHGXUHV
ƒ &RQGXFW EDFNEULHIV WR HQVXUH VXERUGLQDWHV XQGHUVWDQG FRQWURO PHDVXUHV QHDU DQG IDU
UHFRJQLWLRQVLJQDOVDQGWKHORFDWLRQDQGPLVVLRQRIDGMDFHQWXQLWV
ƒ 5HTXLUH VXERUGLQDWHV WR EULHI WKH 52( DQG HVFDODWLRQ RI IRUFH SURFHGXUHV GXULQJ WKH
EDFNEULHI
z ([HFXWLRQ 'XULQJ H[HFXWLRQ OHDGHUV XVH UHDOWLPH ULVN PDQDJHPHQW WR RYHUFRPH XQIRUHVHHQ
IUDWULFLGH ULVNV &RPPDQGHUV FRQGXFW WKH IROORZLQJ WR PLWLJDWH WKH ULVN RI IUDWULFLGH ZKHQ
H[HFXWLQJDQRSHUDWLRQ
ƒ &RQGXFWFRPPXQLFDWLRQVFKHFNVDQGUHFHLYHSHULRGLFVLWXDWLRQUHSRUWVIURPDOOVXERUGLQDWH
XQLWV
ƒ &RQWUROVXERUGLQDWHXQLWPRYHPHQWVE\SKDVHOLQHRURWKHUHVWDEOLVKHGFRQWUROPHDVXUHV
ƒ $GMXVWRSHUDWLRQVDVQHFHVVDU\LQDFFRUGDQFHZLWKVXERUGLQDWHSURJUHVVUDWHVRIPDUFKDQG
PRYHPHQWWDEOHV
ƒ (QVXUHUHJXODUFRPPXQLFDWLRQVDPRQJDGMDFHQWXQLWV
' *UDSKLF FRQWURO PHDVXUHV DUH VWDQGDUGL]HG WRROV WKDW FRPPDQGHUV XVH WR FODULI\ WKHLU LQWHQW DGG
SUHFLVLRQ WR WKHLU FRQFHSW FRQWURO VXERUGLQDWH PRYHPHQW DQG FRPPXQLFDWH WKHLU SODQ $V VXFK FOHDU
JUDSKLFV FDQ EH DQ LPSRUWDQW PHDVXUH IRU UHGXFLQJ WKH ULVN RI IUDWULFLGH &RPPDQGHUV DW DOO OHYHOV PXVW
XQGHUVWDQGWKHGHILQLWLRQVDQGSXUSRVHRIRSHUDWLRQDOJUDSKLFVDQGWKHLPSDFWRIWKHVHFRQWUROPHDVXUHVRQ
WKHLURSHUDWLRQV6HH$'3IRUPRUHLQIRUPDWLRQRQJUDSKLFFRQWUROPHDVXUHV
' &RQILUPDWLRQ EULHIV DQG UHKHDUVDOV DUH SULPDU\ WRROV IRU LGHQWLI\LQJ DQG UHGXFLQJ IUDWULFLGH ULVN $
confirmation briefLVDEULHIVXERUGLQDWHOHDGHUVJLYHWRWKHKLJKHUFRPPDQGHULPPHGLDWHO\DIWHUWKHRSHUDWLRQ
RUGHULVJLYHQWRFRQILUPXQGHUVWDQGLQJ$'3,WLVWKHLUXQGHUVWDQGLQJRIWKHFRPPDQGHU¶VLQWHQWWKHLU
VSHFLILF WDVNV DQG WKH UHODWLRQVKLS EHWZHHQ WKHLU PLVVLRQ DQG WKH RWKHU XQLWV¶ PLVVLRQV LQ WKH RSHUDWLRQ
&RPPDQGHUVFRQVLGHUWKHIROORZLQJZKHQFRQGXFWLQJFRQILUPDWLRQEULHIVDQGUHKHDUVDOVWRDLGLQUHGXFLQJ
IUDWULFLGH
z &RQILUPDWLRQEULHIVHQVXUHVXERUGLQDWHVXQGHUVWDQGWKHLUFRPPDQGHU¶VLQWHQWWKHPLVVLRQDQG
WKHFRQFHSWRIRSHUDWLRQV&RQILUPDWLRQEULHIVRIWHQLGHQWLI\DUHDVRIFRQIXVLRQFRPSOH[LW\RU
SODQQLQJHUURUV
z &RQILUPDWLRQEULHIVVKRXOGUHTXLUHVXERUGLQDWHVWRLGHQWLI\WKHFRQWUROPHDVXUHVWKDWUHVWULFWWKHLU
PRYHPHQWDQGILUH
z &RQILUPDWLRQEULHIVUHTXLUHVXERUGLQDWHVWREULHIERWKQHDUDQGIDUUHFRJQLWLRQVLJQDOVGXULQJWKH
FRQILUPDWLRQEULHI
z 5HKHDUVDOVH[WHQGWRDOOOHYHOVRIFRPPDQGDQGLQYROYHDOONH\OHDGHUV$WWKHVPDOOXQLWOHYHO
FRPSDQ\DQGEHORZDOO6ROGLHUV0DULQHVSDUWLFLSDWHLQWKHUHKHDUVDO
z &RPPDQGHUVXVHFRQILUPDWLRQEULHIVDQGUHKHDUVDOVWRHQVXUHVXERUGLQDWHVNQRZZKHUHIUDWULFLGH
ULVNVH[LVWDQGZKDWWRGRWRUHGXFHRUHOLPLQDWHWKHULVN
' 0DLQWDLQLQJVLWXDWLRQDODZDUHQHVVLVNH\WRIUDWULFLGHUHGXFWLRQ8QLWVGHYHORSWHFKQLTXHVWRJDLQDQG
PDLQWDLQVLWXDWLRQDODZDUHQHVVZKHQRSHUDWLQJLQWKHMXQJOH7HFKQLTXHVLQFOXGH²
z 0RQLWRULQJWKHQH[WKLJKHUKHDGTXDUWHUVQHWZRUN
z &RQGXFWLQJUHJXODUFRPPXQLFDWLRQVFKHFNVDQGVLWXDWLRQUHSRUWVZLWKDGMDFHQWXQLWV
z (VWDEOLVKLQJUHGXQGDQWPHDVXUHVIRUDFFXUDWHO\LGHQWLI\LQJWKHXQLW¶VORFDWLRQ

' 5HGXFLQJWKHULVNRIIUDWULFLGHUHTXLUHVDKROLVWLFDSSURDFKWRFRPSUHKHQVLYHULVNPDQDJHPHQW7KH
IROORZLQJDUHQRWLQWHQGHGWRUHVWULFWLQLWLDWLYHKRZHYHUXQLWVFDQHPSOR\WKHVHPHDVXUHVDVDSSURSULDWHWR
IXUWKHUUHGXFHWKHULVNRIIUDWULFLGH
z ,QFOXGHWKHULVNRIIUDWULFLGHLQUXQQLQJHVWLPDWHVRIXQLWVXWLOL]LQJWKH0'037KHVHULVNVDQG
WKHDVVRFLDWHGFRQWUROVDUHH[SUHVVHGLQWKHRSHUDWLRQRUGHURUIUDJPHQWDU\RUGHU
z 0DLQWDLQDQDFFXUDWHFRPPRQRSHUDWLRQDOSLFWXUHWKDWLQFOXGHVWKHIROORZLQJ
ƒ 5HTXLUHUHJXODUVLWXDWLRQUHSRUWVIURPVXERUGLQDWHDQGDGMDFHQWXQLWV
ƒ 0DLQWDLQDZDUHQHVVRIVXERUGLQDWHDQGDGMDFHQWXQLWV¶ORFDWLRQV

6HSWHPEHU $730&73& '

$SSHQGL['

ƒ &RQWLQXHWRXSGDWHWKHVLWXDWLRQWHPSODWHDVXQLWVUHFHLYHLQIRUPDWLRQRQWKHHQHP\
z (QVXUHSRVLWLYHWDUJHWLGHQWLILFDWLRQ5HYLHZYHKLFOHDQGZHDSRQVLGHQWLILFDWLRQSURFHGXUHVDQG
NQRZDWZKDWUDQJHVDQGXQGHUZKLFKFRQGLWLRQVSRVLWLYHLGHQWLILFDWLRQRIIULHQGO\YHKLFOHVDQG
ZHDSRQVLVSRVVLEOH
z 5HFRJQL]HWKHVLJQVRIFRPEDWVWUHVV7DNHTXLFNHIIHFWLYHDFWLRQWRUHGXFHVWUHVVDQGPDLQWDLQ
XQLWFRKHVLRQ
z &RQGXFW LQGLYLGXDO DQG FROOHFWLYH IUDWULFLGH DZDUHQHVV WUDLQLQJ WDUJHW LGHQWLILFDWLRQ DQG
UHFRJQLWLRQWUDLQLQJILUHGLVFLSOLQHDQGOHDGHUWUDLQLQJ
z .HHSWKHSODQDVVLPSOHDVSRVVLEOHWKHJUHDWHUWKHYDULDEOHVLQWLPLQJDQGPRYHPHQWWKHJUHDWHU
WKHULVNRIIUDWULFLGH
z 8VH623VWKDWDUHFRQVLVWHQWZLWKGRFWULQHWRVLPSOLI\RUGHUVDQGIRVWHULQWHURSHUDELOLW\EHWZHHQ
XQLWVZLWKRXWKDELWXDOUHODWLRQVKLSV3HULRGLFDOO\UHYLHZDQGXSGDWH623VDVQHHGHG
z 3URYLGHVXERUGLQDWHVZLWKWKHWLPHWRDGHTXDWHO\SODQSUHSDUHDQGFRPPXQLFDWHZLWKHDFKRWKHU
z 8VHFRPPRQODQJXDJHDQGYRFDEXODU\DQGGRFWULQDOO\FRUUHFWWHUPLQRORJ\DQGFRQWUROPHDVXUHV
z (VWDEOLVK D XQLIRUP SULPDU\ DOWHUQDWH FRQWLQJHQF\ DQG HPHUJHQF\ 3$&( SODQ IRU DOO
VXERUGLQDWHVWDNLQJSDUWLQWKHRSHUDWLRQ
z &RORFDWHFRPPDQGSRVWVZKHQSRVVLEOHHVSHFLDOO\GXULQJFRPSOH[DQGULVN\RSHUDWLRQVVXFKDV
DSDVVDJHRIOLQHV
z (VWDEOLVKDQGH[FKDQJHOLDLVRQRIILFHUVDVDSSURSULDWH
z 0DNHVXUH52(DUHFOHDUDQGXQGHUVWRRGE\DOO
z 'XULQJWHUUDLQDQDO\VLVFRQVLGHUKRZWKHWHUUDLQHLWKHULQFUHDVHVWKHFKDQFHVRIIUDWULFLGHRUFDQ
EH XVHG WR SUHYHQW IUDWULFLGH $VVHVV REVHUYDWLRQ DQG ILHOGV RI ILUH FRYHU DQG FRQFHDOPHQW
REVWDFOHVDQGPRYHPHQWFRUULGRUVNH\WHUUDLQDQGDYHQXHVRIDSSURDFK)RUH[DPSOH WKHXQLW
FDQXVHDODUJHKLOORUFOLIIDVDXQLWERXQGDU\WREORFNDXQLW¶VILUHIURPHQWHULQJDQRWKHUXQLW¶V
$2
z %HLQWKHULJKWSODFHDWWKHULJKWWLPH8VHSRVLWLRQORFDWLRQDQGQDYLJDWLRQGHYLFHVVXFKDV*36
DQGEDWWOHFRPPDQGV\VWHPVWRNQRZWKHXQLW¶VORFDWLRQDQGWKHORFDWLRQVRIDGMDFHQWXQLWVOHIW
ULJKWIRUZDUGDQGIROORZRQ
z &RQGXFWWKRURXJKDIWHUDFWLRQUHYLHZVRQDOOIUDWULFLGHRUSRWHQWLDOIUDWULFLGHLQFLGHQWV

5('8&,1*7+(5,6.2))5$75,&,'('85,1*3/$11,1*
' 7KHIROORZLQJFRQVLGHUDWLRQVRIIHULQVLJKWLQWRKRZFRPPDQGHUVFDQWKRURXJKO\LQWHJUDWHIUDWULFLGH
UHGXFWLRQWHFKQLTXHVLQWRWKHSODQQLQJDQGRUGHUVSURFHVV7KHIDFWRUVDQGFRQVLGHUDWLRQVDUHOLVWHGZKHUH
WKH\ZRXOGOLNHO\DSSHDULQDQRSHUDWLRQRUGHUKRZHYHUWKH\PD\ZDUUDQWHYDOXDWLRQLQRWKHUSDUDJUDSKVRU
ZKHQSUHSDULQJIRUDQRSHUDWLRQ
' 7DVN2UJDQL]DWLRQ
z +DVWKHXQLWZRUNHGXQGHUWKLVWDVNRUJDQL]DWLRQEHIRUH"
z $UH623VFRPSDWLEOHZLWKWKHWDVNRUJDQL]DWLRQHVSHFLDOO\ZLWKDWWDFKHGXQLWV"
z $UHVSHFLDOPDUNLQJVRUVLJQDOVIRUH[DPSOHFDWV¶H\HVFKHPLFDOO\DFWLYDWHGOLJKWVRUSDQHOV
UHTXLUHGDQGDYDLODEOHIRUSRVLWLYHLGHQWLILFDWLRQRIXQLIRUPVDQGHTXLSPHQW"
z :KDWVSHFLDOZHDSRQVRUHTXLSPHQWZLOO6ROGLHUV0DULQHVXVH"'RWKH\ORRNRUVRXQGOLNHHQHP\
ZHDSRQVRUHTXLSPHQW"
' 6LWXDWLRQ
z (QHP\)RUFHV
ƒ $UHWKHUHVLPLODULWLHVEHWZHHQHQHP\DQGIULHQGO\HTXLSPHQWDQGXQLIRUPVWKDWFRXOGOHDGWR
IUDWULFLGH"
ƒ :KDWODQJXDJHVGRHQHP\IRUFHVVSHDN"&RXOGWKHVHFRQWULEXWHWRIUDWULFLGHULVN"
ƒ :KDWDUHWKHHQHP\¶VGHFHSWLRQFDSDELOLWLHVDQGLWVSDVWUHFRUGRIGHFHSWLRQDFWLYLWLHV"
ƒ :KDWLVWKHGLVSRVLWLRQRIHQHP\IRUFHV"
z )ULHQGO\)RUFHV

' $730&73& 6HSWHPEHU

 7HFKQLTXHVIRU)UDWULFLGH5HGXFWLRQLQWKH-XQJOH

ƒ :KHQ RSHUDWLQJ ZLWK IRUHLJQ VHFXULW\ IRUFHV DUH WKHUH VLPLODULWLHV ZLWK WKH HQHP\ LQ
ODQJXDJH XQLIRUP DQG HTXLSPHQW ZKLFK FRXOG LQFUHDVH IUDWULFLGH ULVN GXULQJ FRPELQHG
RSHUDWLRQV"
ƒ &RXOG GLIIHUHQFHV LQ HTXLSPHQW DQG XQLIRUPV DPRQJ 86 IRUFHV LQFUHDVH IUDWULFLGH ULVN
GXULQJMRLQWRSHUDWLRQV"
ƒ :KDWLVWKHIULHQGO\GHFHSWLRQSODQ"
ƒ :KDWDUHWKHORFDWLRQVRIDGMDFHQWXQLWVOHIWULJKWIRUZDUGDQGIROORZRQ"
ƒ $UHWKHUHQHXWUDOVDQGQRQFRPEDWDQWVLQWKHDUHD"
ƒ +RZ H[SHULHQFHG DUH WKH IRUFHV FRQGXFWLQJ WKH RSHUDWLRQ" ,V WKLV D XQLW¶V ILUVW FRPEDW
RSHUDWLRQ"
ƒ :LOOIDWLJXHEHDIDFWRUIRUIULHQGO\IRUFHVGXULQJWKHRSHUDWLRQ"+DVDQHIIHFWLYHVOHHSSODQ
EHHQGHYHORSHG"
ƒ +DYH XQLWV WUDLQHG WR SURILFLHQF\ ZLWK WKH HTXLSPHQW XVHG GXULQJ WKH RSHUDWLRQ" 7KLV LV
HVSHFLDOO\LPSRUWDQWIRUFRPPXQLFDWLRQVHTXLSPHQWDQGRSWLFV
ƒ :KDWDUHWKHH[SHFWHG0233UHTXLUHPHQWVIRUWKHRSHUDWLRQ"+RZFDQWKLVUHGXFHVLWXDWLRQDO
DZDUHQHVVRUWKHDELOLW\WRFRPPXQLFDWH"
z $WWDFKPHQWVDQG'HWDFKPHQWV
ƒ 'RDWWDFKHGHOHPHQWVNQRZWKHDERYHLQIRUPDWLRQUHJDUGLQJHQHP\DQGIULHQGO\IRUFHV"
ƒ $UHGHWDFKHGHOHPHQWVVXSSOLHGWKHDERYHLQIRUPDWLRQE\WKHLUJDLQLQJXQLWV"
z :HDWKHU
ƒ :KDWDUHWKHH[SHFWHGYLVLELOLW\FRQGLWLRQVOLJKWGDWDDQGSUHFLSLWDWLRQIRUWKHRSHUDWLRQ"
ƒ :KDWHIIHFWZLOOKHDWDQGFROGKDYHRQWURRSVZHDSRQVDQGHTXLSPHQW"7KLVLVSDUWLFXODUO\
UHOHYDQWIRURSWLFVDQGFRPPXQLFDWLRQVHTXLSPHQW
z 7HUUDLQ +RZFDQWKHDUHD¶VWRSRJUDSK\DQGWHUUDLQHLWKHULQFUHDVHWKHULVNRIIUDWULFLGHRUEHXVHG
WR UHGXFH WKH SRWHQWLDO IRU IUDWULFLGH" (YDOXDWH REVHUYDWLRQ DQG ILHOGV RI ILUH FRYHU DQG
FRQFHDOPHQWREVWDFOHVDQGPRELOLW\FRUULGRUVNH\WHUUDLQDQGDYHQXHVRIDSSURDFK
' 0LVVLRQ,VWKHPLVVLRQDVZHOODVDOODVVRFLDWHGWDVNVDQGSXUSRVHVFOHDUO\XQGHUVWRRG"
' ([HFXWLRQ
z 0DQHXYHU$UHPDLQDQGVXSSRUWLQJHIIRUWVLGHQWLILHGDQGDZDUHRIIUDWULFLGHULVNVDQGSUHYHQWLRQ
PHDVXUHV"
z )LUHVGLUHFWDQGLQGLUHFW
ƒ $UHSULRULWLHVRIILUHVLGHQWLILHG"
ƒ +DVWKHILUHH[HFXWLRQPDWUL[RURYHUOD\EHHQGHYHORSHG"
ƒ $UHDWWDFNDYLDWLRQDQG&$6WDUJHWVFOHDUO\LGHQWLILHG"
ƒ +RZZLOOJURXQGIRUFHVLGHQWLI\WKHPVHOYHVWRDYLDWLRQDVVHWV"
ƒ :KDW)6&0VKDYHEHHQHVWDEOLVKHG"
ƒ +DYHILQDOSURWHFWLYHILUHVEHHQHVWDEOLVKHG"
z (QJLQHHU7DVNV
ƒ $UHWKHORFDWLRQVRIIULHQGO\DQGHQHP\PLQHILHOGVNQRZQ"
ƒ $UHREVWDFOHVLGHQWLILHGDORQJZLWKWKHDSSUR[LPDWHWLPHQHHGHGIRUUHGXFWLRQDQGEUHDFKLQJ
RIHDFK"
z 7DVNVWR(DFK6XERUGLQDWH8QLW
ƒ +DVWKHGLUHFWILUHSODQEHHQGHYHORSHG"
ƒ $UHVXSSRUWE\ILUHSRVLWLRQVHVWDEOLVKHGZLWKFOHDUOLPLWVDQGILHOGVRIILUH"
z 7DVNVWR6XVWDLQPHQW8QLWV
ƒ +DYHORFDWLRQVRIIULHQGO\IRUFHVEHHQUHSRUWHGWRVXVWDLQPHQWXQLWV"
ƒ 'RPDQHXYHUXQLWVNQRZWKHORFDWLRQRIVXVWDLQPHQWXQLWVRSHUDWLQJLQWKH$2"
ƒ +RZZLOOVXVWDLQPHQWXQLWVDQGORJLVWLFVFRQYR\VLGHQWLI\WKHPVHOYHVWRDYLDWLRQDVVHWV"

6HSWHPEHU $730&73& '

$SSHQGL['

z &RRUGLQDWLQJ,QVWUXFWLRQV
ƒ :LOO D UHKHDUVDO EH FRQGXFWHG" :KDW W\SH RI UHKHDUVDO ZLOO EH FRQGXFWHG" $UH GLUHFW DQG
LQGLUHFWILUHVLQFOXGHG"
ƒ $UHDSSURSULDWHFRQWUROPHDVXUHVFOHDUO\H[SODLQHGDQGLOOXVWUDWHGLQWKHRSHUDWLRQRUGHUDQG
RYHUOD\V"+DYHWKH\EHHQGLVVHPLQDWHGWR6ROGLHUV0DULQHVZKRKDYHDQHHGWRNQRZ":KDW
LVWKHSODQIRUXVLQJWKHVHFRQWUROPHDVXUHVWRV\QFKURQL]HWKHEDWWOHDQGSUHYHQWIUDWULFLGH"
ƒ +DYHWDUJHWDQGYHKLFOHLGHQWLILFDWLRQGULOOVEHHQSUDFWLFHG"
ƒ 'RVXERUGLQDWHXQLWVNQRZWKHLPPHGLDWHDFWLRQGULOORUDSSURSULDWHVLJQDOLQJWHFKQLTXHVLI
WKH\FRPHXQGHUXQNQRZQRUIULHQGO\ILUH",VWKHUHDEDFNXSDFWLRQ"
' 6XVWDLQPHQW
z :KDWDUHWKHORFDWLRQVRIFRPEDWWUDLQVDQGLVWKLVNQRZQE\DOOSDUWLFLSDWLQJXQLWV"
z :KDWDUHWKHORFDWLRQVRIILHOGWUDLQVDQGLVWKLVNQRZQE\DOOSDUWLFLSDWLQJXQLWV"
z +RZZLOOWUDLQVEHLGHQWLILHG":LOOYHKLFOHVEHPDUNHG"
z 'RPHGLFDODQGPDLQWHQDQFHSHUVRQQHONQRZWKHURXWHVEHWZHHQXQLWVDQGHFKHORQV"

' &RPPDQGDQG6LJQDO
z &RPPDQG
ƒ $UH VXERUGLQDWH FRPPDQGHUV IDPLOLDU ZLWK HDFK RWKHU" +DYH WKH\ UHKHDUVHG WRJHWKHU DQG
HVWDEOLVKHGFRPPXQLFDWLRQV"
ƒ :KDWFRPPDQGLVUHVSRQVLEOHIRUV\QFKURQL]LQJILUHDQGPDQHXYHU"
ƒ :KDW LV WKH VXFFHVVLRQ RI FRPPDQG DQG KRZ ZLOO FKDQJHV WR FRPPDQG DQG FRQWURO EH
FRPPXQLFDWHG"
z 6LJQDO
ƒ 'RLQVWUXFWLRQVLQFOXGHVLJQDOVIRUVSHFLDODQGHPHUJHQF\HYHQWV"
ƒ 'RLQVWUXFWLRQVLQFOXGHKRZWRLGHQWLI\IULHQGO\IRUFHVWRDLUFUDIW"
ƒ :KDWDUHQHDUDQGIDUUHFRJQLWLRQVLJQDOV"$UHWKHVHFRPPRQWRWKHXQLW623RUKDYHWKH\
EHHQHVWDEOLVKHGIRUWKLVSDUWLFXODURSHUDWLRQ"
ƒ +DYHHPHUJHQF\YLVXDOVLJQDOLQJWHFKQLTXHVEHHQHVWDEOLVKHG"
ƒ 'R LQVWUXFWLRQV LQFOXGH EDFNXS DXGLEOH DQG YLVXDO VLJQDOV IRU DOO VSHFLDO DQG HPHUJHQF\
HYHQWV"
ƒ :KDWLVWKH3$&(SODQDQGLVLWFRPPRQWRDOOXQLWVH[HFXWLQJWKHRSHUDWLRQ"
ƒ :KRLVPRQLWRULQJHDFKHOHPHQWRIWKH3$&(SODQ"
ƒ +DVD³VKHULII¶VQHW´RURWKHUHPHUJHQF\IUHTXHQF\EHHQHVWDEOLVKHG"
ƒ :KDWLVWKHSURWRFROIRUXVLQJWKH³VKHULII¶VQHW´DQGZKRLVUHVSRQVLEOHIRUPRQLWRULQJLW"

' $730&73& 6HSWHPEHU

 $SSHQGL[(
0DULQH&RUSV'RFWULQDO6FKHPD&RQYHUVLRQV

7KLVDSSHQGL[SURYLGHVFURVVUHIHUHQFLQJIRUROGDQGFXUUHQW0DULQH&RUSVGRFWULQH
SXEOLFDWLRQQXPEHULQJ
( ,QWKH0DULQH&RUSVFRQGXFWHGDGRFWULQHUHDOLJQPHQWSURMHFWWKDWUHVXOWHGLQUHRUJDQL]LQJDQG
UHQXPEHULQJLWVGRFWULQDOSXEOLFDWLRQV$UP\YHUVLRQVRIGXDO6HUYLFHPDQXDOVSXEOLVKHGSULRUWRGR
QRWUHIOHFWFXUUHQW0DULQH&RUSVGRFWULQHQXPEHULQJ7DEOH(UHIOHFWVWKHQXPEHUFRQYHUVLRQ6HHWKHHQWLUH
WDEOHDWKWWSVKRPHSRUWXVPFPLOVLWHVPFGRFWULQH6KDUHG'RFXPHQWV'RFWULQH+LHUDUFK\SGI
7DEOH(0DULQH&RUSVGRFWULQDOPDQXDOQXPEHUFRQYHUVLRQ
New Number Old Number Publication Title
0&53 0&53' Organization of the United States Marine Corps
Multi-Service Tactics, Techniques, and Procedures for Air-to-Surface
0&53$ 0&53$
Radar System Employment
0&53$ 0&:3 Ground Reconnaissance Operations
0&53% 0&53$ Intelligence Preparation of the Battlefield/Battlespace
0&53% 0&53$ Helicopter Rope Suspension Techniques (HRST) Operations
Multi-Service Techniques for Civil Affairs Support to Foreign
0&53$ 0&53&
Humanitarian Assistance
Multi-Service Tactics, Techniques, and Procedures for Survival,
0&53 0&53+
Evasion and Recovery
Tactics, Techniques, and Procedures for the Field Artillery Cannon
0&53( 0&:3
Battery
0&53 0&:3 Unmanned Aircraft Systems Operations
Multi-Service Tactics, Techniques, and Procedures for the Tactical
0&53 0&53$
Employment of Unmanned Aircraft Systems
0&53' 0&:3 Electronic Warfare
0&53% 0&53% Environmental Considerations
0&53% 0&:3 Petroleum and Water Logistics Operations
0&53' 0&534 Water Support Operations
0&53( 0&53$ Recovery and Battle Damage Assessment and Repair (BDAR)
0&53$ 0&53& Mountain Leader’s Guide to Mountain Warfare Operations
0&73% 0&:3 MAGTF Intelligence Production and Analysis
0&73& 0&:3 Marine Air-Ground Task Force Intelligence Dissemination
0&73$ 0&:3 Scouting and Patrolling
0&73% 0&:3 Air Assault Operations
0&73( 0&:3 Artillery Operations
0&73$ 0&:3 Combined Arms Mobility Operations
0&73( 0&:3 Maintenance Operations
0&:3 0&:3 Intelligence Operations
0&:3 0&:3 Aviation Operations

7DEOH(0DULQH&RUSVGRFWULQDOPDQXDOQXPEHUFRQYHUVLRQFRQWLQXHG

6HSWHPEHU $730&73& (

$SSHQGL[(

New Number Old Number Publication Title

0&:3 0&:3 Marine Air-Ground Task Force Information Operations
0&:3 0&:3 Marine Corps Planning Process
0&:3 0&:3 Leading Marines

( $730&73& 6HSWHPEHU

 6RXUFH1RWHV

7KLVGLYLVLRQOLVWVVRXUFHVE\ILJXUHQXPEHU
)LJXUH
3KRWRE\6HUJHDQW$XGUH\5DPSWRQVW0DULQH([SHGLWLRQDU\8QLW31st Marine Expeditionary Unit
Conducts Training at Jungle Warfare Training CenterWDNHQDW&DPS*RQVDOYHV2NLQDZD
-DSDQ'HFHPEHU$YDLODEOHDWKWWSVZZZGYLGVKXEQHWLPDJHVW
PDULQHH[SHGLWLRQDU\XQLWFRQGXFWVWUDLQLQJMXQJOHZDUIDUHWUDLQLQJFHQWHU
)LJXUH
3KRWRE\&RUSRUDO(ULF7VRUG0DULQH([SHGLWLRQDU\)RUFHBougainville ExerciseWDNHQDW
6FKRILHOG%DUUDFNV+DZDLLRQ)HEUXDU\$YDLODEOHDW
KWWSVZZZGYLGVKXEQHWLPDJHERXJDLQYLOOHH[HUFLVH
)LJXUH
3KRWRE\7HFKQLFDO6HUJHDQW%ULDQ.LPEDOO8QLWHG6WDWHV$IULFD&RPPDQGCentral Accord 2016
WDNHQDW/LEUHYLOOH*DERQRQ-XQH$YDLODEOHDW
KWWSVZZZGYLGVKXEQHWLPDJHFHQWUDODFFRUG
)LJXUH%
3KRWRVE\&RPELQHG$UPV'RFWULQH'LUHFWRUDWHVWDIIWDNHQDW)RUW/HDYHQZRUWK.DQVDV
-XQH

6HSWHPEHU $730&73& 6RXUFH1RWHV



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN


 *ORVVDU\

7KHJORVVDU\OLVWVDFURQ\PVDQGWHUPVZLWK$UP\0DULQH&RUSVDQGMRLQWGHILQLWLRQV
:KHUH WKH VDPH WHUP KDV GLIIHUHQW GHILQLWLRQV XVHG E\ WKH$UP\ 0DULQH &RUSV RU
MRLQWWKHQSDUHQWKHVLVZLWKDSSOLFDEOHSURSRQHQWSUHFHGHVWKHJLYHQ GHILQLWLRQ7KH
SURSRQHQWSXEOLFDWLRQIRUWHUPVLVOLVWHGLQSDUHQWKHVHVDIWHUWKHGHILQLWLRQ$SSURYHG
0DULQH &RUSV DFURQ\PV WHUPV GHILQLWLRQV DQG DGGHQGXPV FDQ EH IRXQG LQ
0&53 Marine Corps Supplement to the Department of Defense Dictionary of
Military and Associated Terms

6(&7,21,±$&521<06$1'$%%5(9,$7,216
$$9 DPSKLELRXVDVVDXOWYHKLFOH
$&9 DPSKLELRXVFRPEDWYHKLFOH
$'3 $UP\GRFWULQHSXEOLFDWLRQ
$2 DUHDRIRSHUDWLRQV
$65 DOWHUQDWHVXSSO\URXWH
$73 $UP\WHFKQLTXHVSXEOLFDWLRQ
%'$5 EDWWOHGDPDJHDVVHVVPHQWDQGUHSDLU
&$6 FORVHDLUVXSSRUW
&%51 FKHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDU
&02& FLYLOPLOLWDU\RSHUDWLRQVFHQWHU
&206(& FRPPXQLFDWLRQVVHFXULW\
'2' 'HSDUWPHQWRI'HIHQVH
'2'' 'HSDUWPHQWRI'HIHQVHGLUHFWLYH
($ HQJDJHPHQWDUHD
(06 HOHFWURPDJQHWLFVSHFWUXP
(: HOHFWURQLFZDUIDUH
)$6&$0 IDPLO\RIVFDWWHUDEOHPLQHV
)0 ILHOGPDQXDO
)3/ ILQDOSURWHFWLYHOLQH
)6&0 ILUHVXSSRUWFRRUGLQDWLRQPHDVXUH
+1 KRVWQDWLRQ
+80,17 KXPDQLQWHOOLJHQFH
,(' LPSURYLVHGH[SORVLYHGHYLFH
,*2 LQWHUJRYHUQPHQWDORUJDQL]DWLRQ
,2 LQIRUPDWLRQRSHUDWLRQV
,3% LQWHOOLJHQFHSUHSDUDWLRQRIWKHEDWWOHILHOGEDWWOHVSDFH
,5 LQIUDUHG
-)& MRLQWIRUFHFRPPDQGHU

6HSWHPEHU $730&73& *ORVVDU\

*ORVVDU\

-3 MRLQWSXEOLFDWLRQ
/2& OLQHRIFRPPXQLFDWLRQV
0$*7) 0DULQHDLUJURXQGWDVNIRUFH
0&'3 0DULQH&RUSVGRFWULQDOSXEOLFDWLRQ
0&22 PRGLILHGFRPELQHGREVWDFOHRYHUOD\
0&33 0DULQH&RUSVSODQQLQJSURFHVV
0&53 0DULQH&RUSVUHIHUHQFHSXEOLFDWLRQ
0&73 0DULQH&RUSVWDFWLFDOSXEOLFDWLRQ
0&:3 0DULQH&RUSVZDUILJKWLQJSXEOLFDWLRQ
0'03 PLOLWDU\GHFLVLRQPDNLQJSURFHVV
0(777 PLVVLRQHQHP\WHUUDLQDQGZHDWKHUWURRSVDQGVXSSRUWDYDLODEOH²WLPH
DYDLODEOH
0(777& PLVVLRQHQHP\WHUUDLQDQGZHDWKHUWURRSVDQGVXSSRUWDYDLODEOH²WLPH
DYDLODEOHDQGFLYLOFRQVLGHUDWLRQV
0,/'(& PLOLWDU\GHFHSWLRQ
0,62 PLOLWDU\LQIRUPDWLRQVXSSRUWRSHUDWLRQV
02( PHDVXUHRIHIIHFWLYHQHVV
023 PHDVXUHRISHUIRUPDQFH
0233 PLVVLRQRULHQWHGSURWHFWLYHSRVWXUH
065 PDLQVXSSO\URXWH
1*2 QRQJRYHUQPHQWDORUJDQL]DWLRQ
19' QLJKWYLVLRQGHYLFH
236(& RSHUDWLRQVVHFXULW\
3$$ SRVLWLRQDUHDIRUDUWLOOHU\
35& SHUVRQQHODQGUHVRXUFHFRQWURO
52( UXOHVRIHQJDJHPHQW
62) VSHFLDORSHUDWLRQVIRUFHV
623 VWDQGDUGRSHUDWLQJSURFHGXUH
6:($7062 VHZHUZDWHUHOHFWULFLW\DFDGHPLFVWUDVKPHGLFDOVDIHW\RWKHUFRQVLGHUDWLRQV
70 WHFKQLFDOPDQXDO
8$6 XQPDQQHGDLUFUDIWV\VWHPV
86 8QLWHG6WDWHV
:%*7 ZHWEXOEJOREHWHPSHUDWXUH

6(&7,21,,±7(506
DLUDVVDXOW
MRLQW7KHPRYHPHQWRIIULHQGO\DVVDXOWIRUFHVE\URWDU\ZLQJRUWLOWURWRUDLUFUDIWWRHQJDJHDQG
GHVWUR\HQHP\IRUFHVRUWRVHL]HDQGKROGNH\WHUUDLQ-30DULQH&RUSVDPSOLILFDWLRQ
2SHUDWLRQVLQZKLFKDLUDVVDXOWIRUFHVFRPEDWFRPEDWVXSSRUWDQGFRPEDWVHUYLFHVXSSRUWXVLQJWKH
ILUHSRZHUPRELOLW\DQGWRWDOLQWHJUDWLRQRIDVVDXOWVXSSRUWDVVHWVLQWKHLUJURXQGRUDLUUROHV
PDQHXYHURQWKHEDWWOHILHOGXQGHUWKHFRQWURORIWKHPLVVLRQFRPPDQGHUWRSURYLGHPRELOLW\DQG
ILUHSRZHURIWKHDVVLJQHGPLVVLRQ0&53

*ORVVDU\ $730&73& 6HSWHPEHU

 *ORVVDU\

DOWHUQDWHSRVLWLRQ
$UP\$ GHIHQVLYHSRVLWLRQWKDWWKHFRPPDQGHUDVVLJQVWRDXQLWRUZHDSRQIRURFFXSDWLRQZKHQWKH
SULPDU\SRVLWLRQEHFRPHVXQWHQDEOHRUXQVXLWDEOHIRUFDUU\LQJRXWWKHDVVLJQHGWDVN$'3
0DULQH&RUSV$SRVLWLRQWREHRFFXSLHGZKHQWKHSULPDU\SRVLWLRQEHFRPHVXQWHQDEOHRUXQVXLWDEOH
IRUFDUU\LQJRXWLWVWDVN,WVSRVLWLRQDOORZVIXOILOOPHQWRIWKHRULJLQDOWDVN0&53
DPEXVK
$UP\$QDWWDFNE\ILUHRURWKHUGHVWUXFWLYHPHDQVIURPFRQFHDOHGSRVLWLRQVRQDPRYLQJRU
WHPSRUDULO\KDOWHGHQHP\)00DULQH&RUSV$VXUSULVHDWWDFNE\ILUHIURPFRQFHDOHG
SRVLWLRQVRQDPRYLQJRUWHPSRUDULO\KDOWHGHQHP\0&53
DPSKLELRXVRSHUDWLRQ
$ DPSKLELRXVRSHUDWLRQLVDPLOLWDU\RSHUDWLRQODXQFKHGIURPWKHVHDE\DQDPSKLELRXVIRUFHWR
FRQGXFWODQGLQJIRUFHRSHUDWLRQVZLWKLQWKHOLWWRUDOV-3
DUHDGHIHQVH
$UP\$W\SHRIGHIHQVLYHRSHUDWLRQWKDWFRQFHQWUDWHVRQGHQ\LQJHQHP\IRUFHVDFFHVVWRGHVLJQDWHG
WHUUDLQIRUDVSHFLILFWLPHUDWKHUWKDQGHVWUR\LQJWKHHQHP\RXWULJKW$'30DULQH&RUSV$
W\SHRIGHIHQVHLQZKLFKWKHEXONRIWKHGHIHQGLQJIRUFHLVGLVSRVHGLQVHOHFWHGWDFWLFDOORFDOLWLHVZKHUH
WKHGHFLVLYHEDWWOHLVWREHIRXJKW3ULQFLSDOUHOLDQFHLVSODFHGRQWKHDELOLW\RIWKHIRUFHVLQWKH
GHIHQGHGORFDOLWLHVWRPDLQWDLQWKHLUSRVLWLRQVDQGWRFRQWUROWKHWHUUDLQEHWZHHQWKHP7KHUHVHUYHLV
XVHGWRDGGGHSWKWREORFNRUUHVWRUHWKHEDWWOHSRVLWLRQE\FRXQWHUDWWDFN0&53
DUHDVHFXULW\
$W\SHRIVHFXULW\RSHUDWLRQFRQGXFWHGWRSURWHFWIULHQGO\IRUFHVOLQHVRIFRPPXQLFDWLRQVDQG
DFWLYLWLHVZLWKLQDVSHFLILFDUHD$'3
DWWDFN
$W\SHRIRIIHQVLYHRSHUDWLRQWKDWGHVWUR\VRUGHIHDWVHQHP\IRUFHVVHL]HVDQGVHFXUHVWHUUDLQRUERWK
$'3 0DULQH&RUSV$QRIIHQVLYHDFWLRQFKDUDFWHUL]HGE\FRRUGLQDWHGPRYHPHQWVXSSRUWHGE\
ILUHFRQGXFWHGWRGHIHDWGHVWUR\RUFDSWXUHWKHHQHP\RUVHL]HDQGRUVHFXUHNH\WHUUDLQ
0&53
EDWWOHSRVLWLRQ
$UP\$GHIHQVLYHORFDWLRQRULHQWHGRQDOLNHO\HQHP\DYHQXHRIDSSURDFK$'30DULQH
&RUSV,QJURXQGRSHUDWLRQVDGHIHQVLYHORFDWLRQRULHQWHGRQDQHQHP\DYHQXHRIDSSURDFKIURP
ZKLFKDXQLWPD\GHIHQG0&53
ELRORJLFDODJHQW
$ PLFURRUJDQLVPRUDWR[LQGHULYHGIURPLWWKDWFDXVHVGLVHDVHLQSHUVRQQHOSODQWVRUDQLPDOVRU
FDXVHVWKHGHWHULRUDWLRQRIPDWHULHO-3
ELRPHWULFV
7KHSURFHVVRIUHFRJQL]LQJDQLQGLYLGXDOEDVHGRQPHDVXUDEOHDQDWRPLFDOSK\VLRORJLFDODQG
EHKDYLRUDOFKDUDFWHULVWLFV-3
EUHDNRXW
$UP\$QRSHUDWLRQFRQGXFWHGE\DQHQFLUFOHGIRUFHWRUHJDLQIUHHGRPRIPRYHPHQWRUFRQWDFWZLWK
IULHQGO\XQLWV$'30DULQH&RUSV$QRSHUDWLRQFRQGXFWHGE\DQHQFLUFOHGIRUFHWRUHJDLQ
IUHHGRPRIPRYHPHQWRUFRQWDFWZLWKIULHQGO\XQLWV,WGLIIHUVIURPRWKHUDWWDFNVRQO\LQWKDWD
VLPXOWDQHRXVGHIHQVHLQRWKHUDUHDVRIWKHSHULPHWHUPXVWEHPDLQWDLQHG0&53

FKHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDURSHUDWLRQV
&KHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDURSHUDWLRQVLQFOXGHWKHHPSOR\PHQWRIFDSDELOLWLHVWKDW
DVVHVVSURWHFWDJDLQVWDQGPLWLJDWHWKHHQWLUHUDQJHRIFKHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDU
LQFLGHQWVWRHQDEOHIUHHGRPRIDFWLRQ)0

6HSWHPEHU $730&73& *ORVVDU\

*ORVVDU\

FORVHDUHD
7KHSRUWLRQRIWKHFRPPDQGHU¶VDUHDRIRSHUDWLRQVZKHUHWKHPDMRULW\RIVXERUGLQDWHPDQHXYHUIRUFHV
FRQGXFWFORVHFRPEDW$'3
FRPEDWSRZHU
MRLQW7KHWRWDOPHDQVRIGHVWUXFWLYHDQGRUGLVUXSWLYHIRUFHWKDWDPLOLWDU\XQLWIRUPDWLRQFDQDSSO\
DJDLQVWWKHRSSRQHQWDWDJLYHQWLPH-3$UP\7KHWRWDOPHDQVRIGHVWUXFWLYHFRQVWUXFWLYHDQG
LQIRUPDWLRQFDSDELOLWLHVWKDWDPLOLWDU\XQLWRUIRUPDWLRQFDQDSSO\DWDJLYHQWLPH$'30DULQH
&RUSV7KHWRWDOGHVWUXFWLYHIRUFHZHFDQEULQJWREHDUDJDLQVWWKHHQHP\LWLVDXQLTXHSURGXFWRID
YDULHW\RISK\VLFDOPRUDODQGPHQWDOIDFWRUV0&'3
FRPPDQGDQGFRQWURO
7KHH[HUFLVHRIDXWKRULW\DQGGLUHFWLRQE\DSURSHUO\GHVLJQDWHGFRPPDQGHURYHUDVVLJQHGDQG
DWWDFKHGIRUFHVLQWKHDFFRPSOLVKPHQWRIWKHPLVVLRQ-30DULQHV&RUSVDPSOLILFDWLRQ7KHPHDQV
E\ZKLFKDFRPPDQGHUUHFRJQL]HVZKDWQHHGVWREHGRQHDQGVHHVWRLWWKDWDSSURSULDWHDFWLRQVDUH
WDNHQ&RPPDQGDQGFRQWUROLVRQHRIWKHZDUILJKWLQJIXQFWLRQV0&53
FRPPDQGDQGFRQWUROV\VWHP
$UP\7KHDUUDQJHPHQWRISHRSOHSURFHVVHVQHWZRUNVDQGFRPPDQGSRVWVWKDWHQDEOHFRPPDQGHUV
WRFRQGXFWRSHUDWLRQV$'3
FRPPDQGDQGFRQWUROZDUILJKWLQJIXQFWLRQ
7KHUHODWHGWDVNVDQGDV\VWHPWKDWHQDEOHFRPPDQGHUVWRV\QFKURQL]HDQGFRQYHUJHDOOHOHPHQWVRI
FRPEDWSRZHU$'3
FRPPDQGSRVW
$UP\$XQLWKHDGTXDUWHUVZKHUHWKHFRPPDQGHUDQGVWDIISHUIRUPWKHLUDFWLYLWLHV)00DULQH
&RUSV$XQLW¶VRUVXEXQLW¶VKHDGTXDUWHUVZKHUHWKHFRPPDQGHURUGHVLJQDWHGUHSUHVHQWDWLYHDQGWKH
VWDIISHUIRUPWKHLUDFWLYLWLHV0&53
FRQILUPDWLRQEULHI
$EULHIVXERUGLQDWHOHDGHUVJLYHWRWKHKLJKHUFRPPDQGHULPPHGLDWHO\DIWHUWKHRSHUDWLRQRUGHULV
JLYHQWRFRQILUPXQGHUVWDQGLQJ$'3
FRQVROLGDWHJDLQV
$FWLYLWLHVWRPDNHHQGXULQJDQ\WHPSRUDU\RSHUDWLRQDOVXFFHVVDQGWRVHWWKHFRQGLWLRQVIRUD
VXVWDLQDEOHVHFXULW\HQYLURQPHQWDOORZLQJIRUDWUDQVLWLRQRIFRQWUROWRRWKHUOHJLWLPDWHDXWKRULWLHV
$'3
FRQVROLGDWLRQDUHD
7KHSRUWLRQRIWKHODQGFRPPDQGHU¶VDUHDRIRSHUDWLRQVWKDWPD\EHGHVLJQDWHGWRIDFLOLWDWHIUHHGRPRI
DFWLRQFRQVROLGDWHJDLQVWKURXJKGHFLVLYHDFWLRQDQGVHWFRQGLWLRQVWRWUDQVLWLRQWKHDUHDRIRSHUDWLRQV
WRIROORZRQIRUFHVRURWKHUOHJLWLPDWHDXWKRULWLHV$'3
FRQWURO
$UP\7KHUHJXODWLRQRIIRUFHVDQGZDUILJKWLQJIXQFWLRQVWRDFFRPSOLVKWKHPLVVLRQLQDFFRUGDQFH
ZLWKWKHFRPPDQGHU¶VLQWHQW$'30DULQH&RUSV7RPDLQWDLQSK\VLFDOLQIOXHQFHE\RFFXSDWLRQ
RUUDQJHRIZHDSRQV\VWHPVRYHUWKHDFWLYLWLHVRUDFFHVVLQDGHILQHGDUHD0&53
FULWLFDODVVHWOLVW
$SULRULWL]HGOLVWRIDVVHWVRUDUHDVQRUPDOO\LGHQWLILHGE\SKDVHRIWKHRSHUDWLRQDQGDSSURYHGE\WKH
MRLQWIRUFHFRPPDQGHUWKDWVKRXOGEHGHIHQGHGDJDLQVWDLUDQGPLVVLOHWKUHDWV-3
FXOPLQDWLQJSRLQW
7KHSRLQWDWZKLFKDIRUFHQRORQJHUKDVWKHFDSDELOLW\WRFRQWLQXHLWVIRUPRIRSHUDWLRQVRIIHQVHRU
GHIHQVH-3

*ORVVDU\ $730&73& 6HSWHPEHU

 *ORVVDU\

F\EHUVSDFH
$ JOREDOGRPDLQZLWKLQWKHLQIRUPDWLRQHQYLURQPHQWFRQVLVWLQJRIWKHLQWHUGHSHQGHQWQHWZRUNVRI
LQIRUPDWLRQWHFKQRORJ\LQIUDVWUXFWXUHVDQGUHVLGHQWGDWDLQFOXGLQJWKH,QWHUQHWWHOHFRPPXQLFDWLRQV
QHWZRUNVFRPSXWHUV\VWHPVDQGHPEHGGHGSURFHVVRUVDQGFRQWUROOHUV-3
GHFLVLYHRSHUDWLRQ
7KHRSHUDWLRQWKDWGLUHFWO\DFFRPSOLVKHVWKHPLVVLRQ$'3
GHFRQWDPLQDWLRQ
7KHSURFHVVRIPDNLQJDQ\SHUVRQREMHFWRUDUHDVDIHE\GHVWUR\LQJQHXWUDOL]LQJPDNLQJKDUPOHVV
RUDEVRUELQJDQGUHPRYLQJFKHPLFDORUELRORJLFDODJHQWVRUE\UHPRYLQJUDGLRDFWLYHPDWHULDOFOLQJLQJ
WRRUDURXQGLW-3
GHHSDUHD
:KHUHWKHFRPPDQGHUVHWVFRQGLWLRQVIRUIXWXUHVXFFHVVLQFORVHFRPEDW$'3
GHIHQGHGDVVHWOLVW
$OLVWLQJRIWKRVHDVVHWVIURPWKHFULWLFDODVVHWOLVWSULRULWL]HGE\WKHMRLQWIRUFHFRPPDQGHUWREH
GHIHQGHGZLWKWKHUHVRXUFHVDYDLODEOH-3
GHIHQVLYHRSHUDWLRQ
$UP\$QRSHUDWLRQWRGHIHDWDQHQHP\DWWDFNJDLQWLPHHFRQRPL]HIRUFHVDQGGHYHORSFRQGLWLRQV
IDYRUDEOHIRURIIHQVLYHRUVWDELOLW\RSHUDWLRQV$'30DULQH&RUSV2SHUDWLRQVFRQGXFWHGWR
GHIHDWDQHQHP\DWWDFNJDLQWLPHHFRQRPL]HIRUFHVDQGGHYHORSFRQGLWLRQVIDYRUDEOHWRRIIHQVLYH
DQGVWDELOLW\RSHUDWLRQV7KHWKUHHW\SHVRIGHIHQVLYHRSHUDWLRQVDUHDUHDPRELOHDQGUHWURJUDGH
0&53
GHOD\
$UP\:KHQDIRUFHXQGHUSUHVVXUHWUDGHVVSDFHIRUWLPHE\VORZLQJGRZQWKHHQHP\¶VPRPHQWXP
DQGLQIOLFWLQJPD[LPXPGDPDJHRQHQHP\IRUFHVZLWKRXWEHFRPLQJGHFLVLYHO\HQJDJHG$'3
0DULQH&RUSV$IRUPRIUHWURJUDGHLQZKLFKDIRUFHXQGHUSUHVVXUHWUDGHVVSDFHIRUWLPHE\VORZLQJ
WKHHQHP\¶VPRPHQWXPDQGLQIOLFWLQJPD[LPXPGDPDJHRQWKHHQHP\ZLWKRXWLQSULQFLSOH
EHFRPLQJGHFLVLYHO\HQJDJHG0&53
GHOD\OLQH
$SKDVHOLQHZKHUHWKHGDWHDQGWLPHEHIRUHZKLFKWKHHQHP\LVQRWDOORZHGWRFURVVWKHSKDVHOLQHLV
GHSLFWHGDVSDUWRIWKHJUDSKLFFRQWUROPHDVXUH)0
GLVHQJDJHPHQWOLQH
$SKDVHOLQHORFDWHGRQLGHQWLILDEOHWHUUDLQWKDWZKHQFURVVHGE\WKHHQHP\VLJQDOVWRGHIHQGLQJ
HOHPHQWVWKDWLWLVWLPHWRGLVSODFHWRWKHLUQH[WSRVLWLRQ$'3
HQJDJHPHQWDUHD
$UP\$QDUHDZKHUHWKHFRPPDQGHULQWHQGVWRFRQWDLQDQGGHVWUR\DQHQHP\IRUFHZLWKWKHPDVVHG
HIIHFWVRIDOODYDLODEOHZHDSRQVDQGVXSSRUWLQJV\VWHPV$'3 0DULQH&RUSV$QDUHDZKHUH
WKHFRPPDQGHULQWHQGVWRFRQWDLQDQGGHVWUR\DQHQHP\IRUFHZLWKWKHHIIHFWVRIPDVVHGZHDSRQVDQG
VXSSRUWLQJV\VWHPV0&53
H[ILOWUDWH
$WDFWLFDOPLVVLRQWDVNZKHUHDFRPPDQGHUUHPRYHV6ROGLHUVRUXQLWVIURPDUHDVXQGHUHQHP\FRQWURO
E\VWHDOWKGHFHSWLRQVXUSULVHRUFODQGHVWLQHPHDQV)0
H[SORLWDWLRQ
$UP\$W\SHRIRIIHQVLYHRSHUDWLRQWKDWXVXDOO\IROORZVDVXFFHVVIXODWWDFNDQGLVGHVLJQHGWR
GLVRUJDQL]HWKHHQHP\LQGHSWK$'3MRLQW$QRIIHQVLYHRSHUDWLRQWKDWXVXDOO\IROORZVD
VXFFHVVIXODWWDFNDQGLVGHVLJQHGWRGLVRUJDQL]HWKHHQHP\LQGHSWK-30DULQH&RUSV
DPSOLILFDWLRQ$QRIIHQVLYHRSHUDWLRQIROORZLQJDVXFFHVVIXODWWDFNWKDWLVGHVLJQHGWRGLVRUJDQL]HWKH
HQHP\LQGHSWK,WH[WHQGVWKHLQLWLDOVXFFHVVRIWKHDWWDFNE\SUHYHQWLQJWKHHQHP\IURPGLVHQJDJLQJ
ZLWKGUDZLQJDQGUHHVWDEOLVKLQJDQHIIHFWLYHGHIHQVH0&53

6HSWHPEHU $730&73& *ORVVDU\

*ORVVDU\

ILQDOSURWHFWLYHILUH
$QLPPHGLDWHO\DYDLODEOHSUHDUUDQJHGEDUULHURIILUHGHVLJQHGWRLPSHGHHQHP\PRYHPHQWDFURVV
GHIHQVLYHOLQHVRUDUHDV-3
ILUHV
7KHXVHRIZHDSRQV\VWHPVRURWKHUDFWLRQVWRFUHDWHVSHFLILFOHWKDORUQRQOHWKDOHIIHFWVRQDWDUJHW
-30DULQH&RUSVDPSOLILFDWLRQ7KRVHPHDQVXVHGWRGHOD\GLVUXSWGHJUDGHRUGHVWUR\HQHP\
FDSDELOLWLHVIRUFHVRUIDFLOLWLHVDVZHOODVDIIHFWWKHHQHP\¶VZLOOWRILJKW)LUHVLVRQHRIWKH
ZDUILJKWLQJIXQFWLRQV0&53
ILUHVZDUILJKWLQJIXQFWLRQ
7KHUHODWHGWDVNVDQGV\VWHPVWKDWFUHDWHDQGFRQYHUJHHIIHFWVLQDOOGRPDLQVDJDLQVWWKHDGYHUVDU\RU
HQHP\WRHQDEOHRSHUDWLRQVDFURVVWKHUDQJHRIPLOLWDU\RSHUDWLRQV$'3
IRUFHSURWHFWLRQ
MRLQW3UHYHQWLYHPHDVXUHVWDNHQWRPLWLJDWHKRVWLOHDFWLRQVDJDLQVW'HSDUWPHQWRI'HIHQVHSHUVRQQHO
WRLQFOXGHIDPLO\PHPEHUVUHVRXUFHVIDFLOLWLHVDQGFULWLFDOLQIRUPDWLRQ-30DULQH&RUSV
DPSOLILFDWLRQ$FWLRQVRUHIIHFWVXVHGWRVDIHJXDUGRZQFHQWHUVRIJUDYLW\ZKLOHSURWHFWLQJFRQFHDOLQJ
UHGXFLQJRUHOLPLQDWLQJIULHQGO\FULWLFDOYXOQHUDELOLWLHV)RUFHSURWHFWLRQLVRQHRIWKHZDUILJKWLQJ
IXQFWLRQV0&53
IRUFHWDLORULQJ
7KHSURFHVVRIGHWHUPLQLQJWKHULJKWPL[RIIRUFHVDQGWKHVHTXHQFHRIWKHLUGHSOR\PHQWLQVXSSRUWRI
DMRLQWIRUFHFRPPDQGHU$'3
IRUPVRIPDQHXYHU
'LVWLQFWWDFWLFDOFRPELQDWLRQVRIILUHDQGPRYHPHQWZLWKDXQLTXHVHWRIGRFWULQDOFKDUDFWHULVWLFVWKDW
GLIIHUSULPDULO\LQWKHUHODWLRQVKLSEHWZHHQWKHPDQHXYHULQJIRUFHDQGWKHHQHP\$'3
IUDWULFLGH
7KHXQLQWHQWLRQDONLOOLQJRUZRXQGLQJRIIULHQGO\RUQHXWUDOSHUVRQQHOE\IULHQGO\ILUHSRZHU
$'3
KLJKSD\RIIWDUJHW
$WDUJHWZKRVHORVVWRWKHHQHP\ZLOOVLJQLILFDQWO\FRQWULEXWHWRWKHVXFFHVVRIWKHIULHQGO\FRXUVHRI
DFWLRQ-3
KLJKYDOXHWDUJHW
$WDUJHWWKHHQHP\FRPPDQGHUUHTXLUHVIRUWKHVXFFHVVIXOFRPSOHWLRQRIWKHPLVVLRQ-3
LQILOWUDWLRQ
$UP\$IRUPRIPDQHXYHULQZKLFKDQDWWDFNLQJIRUFHFRQGXFWVXQGHWHFWHGPRYHPHQWWKURXJKRU
LQWRDQDUHDRFFXSLHGE\HQHP\IRUFHVWRRFFXS\DSRVLWLRQRIDGYDQWDJHEHKLQGWKRVHHQHP\SRVLWLRQV
ZKLOHH[SRVLQJRQO\VPDOOHOHPHQWVWRHQHP\GHIHQVLYHILUHV)00DULQHV&RUSV7KH
PRYHPHQWWKURXJKRULQWRDQDUHDRUWHUULWRU\RFFXSLHGE\HLWKHUIULHQGO\RUHQHP\WURRSVRU
RUJDQL]DWLRQV7KHPRYHPHQWLVPDGHHLWKHUE\VPDOOJURXSVRUE\LQGLYLGXDOVDWH[WHQGHGRULUUHJXODU
LQWHUYDOV:KHQXVHGLQFRQQHFWLRQZLWKWKHHQHP\LWLPSOLHVWKDWFRQWDFWLVDYRLGHG0&53
LQIRUPDWLRQHQYLURQPHQW
7KHDJJUHJDWHRILQGLYLGXDOVRUJDQL]DWLRQVDQGV\VWHPVWKDWFROOHFWSURFHVVGLVVHPLQDWHRUDFWRQ
LQIRUPDWLRQ-3
LQIRUPDWLRQRSHUDWLRQV
7KHLQWHJUDWHGHPSOR\PHQWGXULQJPLOLWDU\RSHUDWLRQVRILQIRUPDWLRQUHODWHGFDSDELOLWLHVLQFRQFHUW
ZLWKRWKHUOLQHVRIRSHUDWLRQWRLQIOXHQFHGLVUXSWFRUUXSWRUXVXUSWKHGHFLVLRQPDNLQJRIDGYHUVDULHV
DQGSRWHQWLDODGYHUVDULHVZKLOHSURWHFWLQJRXURZQ-30DULQH&RUSVDPSOLILFDWLRQ7KH
LQWHJUDWLRQFRRUGLQDWLRQDQGV\QFKURQL]DWLRQRIDFWLRQVWDNHQWRDIIHFWDUHOHYDQWGHFLVLRQPDNHULQ
RUGHUWRFUHDWHDQRSHUDWLRQDODGYDQWDJHIRUWKHFRPPDQGHU

*ORVVDU\ $730&73& 6HSWHPEHU

 *ORVVDU\

LQWHOOLJHQFH
7KHSURGXFWUHVXOWLQJIURPWKHFROOHFWLRQSURFHVVLQJLQWHJUDWLRQHYDOXDWLRQDQDO\VLVDQG
LQWHUSUHWDWLRQRIDYDLODEOHLQIRUPDWLRQFRQFHUQLQJIRUHLJQQDWLRQVKRVWLOHRUSRWHQWLDOO\KRVWLOHIRUFHV
RUHOHPHQWVRUDUHDVRIDFWXDORUSRWHQWLDORSHUDWLRQV-30DULQH&RUSVDPSOLILFDWLRQ
.QRZOHGJHDERXWWKHHQHP\RUWKHVXUURXQGLQJHQYLURQPHQWQHHGHGWRVXSSRUWGHFLVLRQPDNLQJ
,QWHOOLJHQFHLVRQHRIWKHZDUILJKWLQJIXQFWLRQV0&53
LQWHOOLJHQFHSUHSDUDWLRQRIWKHEDWWOHILHOGEDWWOHVSDFH
$UP\7KHV\VWHPDWLFSURFHVVRIDQDO\]LQJWKHPLVVLRQYDULDEOHVRIHQHP\WHUUDLQZHDWKHUDQGFLYLO
FRQVLGHUDWLRQVLQDQDUHDRILQWHUHVWWRGHWHUPLQHWKHLUHIIHFWRQRSHUDWLRQV$73MRLQW7KH
DQDO\WLFDOPHWKRGRORJLHVHPSOR\HGE\WKH6HUYLFHVRUMRLQWIRUFHFRPSRQHQWFRPPDQGVWRUHGXFH
XQFHUWDLQWLHVFRQFHUQLQJWKHHQHP\HQYLURQPHQWWLPHDQGWHUUDLQ-30DULQH&RUSV
DPSOLILFDWLRQ7KHV\VWHPDWLFFRQWLQXRXVSURFHVVRIDQDO\]LQJWKHWKUHDWDQGHQYLURQPHQWLQDVSHFLILF
JHRJUDSKLFDUHD0&53
LQWHOOLJHQFHZDUILJKWLQJIXQFWLRQ
7KHUHODWHGWDVNVDQGV\VWHPVWKDWIDFLOLWDWHXQGHUVWDQGLQJWKHHQHP\WHUUDLQZHDWKHUFLYLO
FRQVLGHUDWLRQVDQGRWKHUVLJQLILFDQWDVSHFWVRIWKHRSHUDWLRQDOHQYLURQPHQW$'3
NH\WHUUDLQ
$UP\$QLGHQWLILDEOHFKDUDFWHULVWLFZKRVHVHL]XUHRUUHWHQWLRQDIIRUGVDPDUNHGDGYDQWDJHWRHLWKHU
FRPEDWDQW$'3
NQRZOHGJHPDQDJHPHQW
$UP\7KHSURFHVVRIHQDEOLQJNQRZOHGJHIORZWRHQKDQFHVKDUHGXQGHUVWDQGLQJOHDUQLQJDQG
GHFLVLRQPDNLQJ$'30DULQH&RUSV7KHLQWHJUDWLRQRISHRSOHDQGSURFHVVHVHQDEOHGE\
WHFKQRORJ\WRIDFLOLWDWHWKHH[FKDQJHRIRSHUDWLRQDOO\UHOHYDQWLQIRUPDWLRQDQGH[SHUWLVHWRLQFUHDVH
RUJDQL]DWLRQDOSHUIRUPDQFH0&53
OHDGHUVKLS
7KHDFWLYLW\RILQIOXHQFLQJSHRSOHE\SURYLGLQJSXUSRVHGLUHFWLRQDQGPRWLYDWLRQWRDFFRPSOLVKWKH
PLVVLRQDQGLPSURYHWKHRUJDQL]DWLRQ$'3
ORJLVWLFV
MRLQW3ODQQLQJDQGH[HFXWLQJWKHPRYHPHQWDQGVXSSRUWRIIRUFHV-30DULQH&RUSV
DPSOLILFDWLRQ$OODFWLYLWLHVUHTXLUHGWRPRYHDQGVXVWDLQPLOLWDU\IRUFHV/RJLVWLFVLVRQHRIWKH
ZDUILJKWLQJIXQFWLRQV 0&53
PDLQEDWWOHDUHD
$UP\7KHDUHDZKHUHWKHFRPPDQGHULQWHQGVWRGHSOR\WKHEXONRIWKHXQLW¶VFRPEDWSRZHUDQG
FRQGXFWGHFLVLYHRSHUDWLRQVWRGHIHDWDQDWWDFNLQJHQHP\$'30DULQH&RUSV7KDWSRUWLRQRI
WKHEDWWOHVSDFHLQZKLFKWKHFRPPDQGHUFRQGXFWVFORVHRSHUDWLRQVWRGHIHDWWKHHQHP\1RUPDOO\WKH
PDLQEDWWOHDUHDH[WHQGVUHDUZDUGIURPWKHIRUZDUGHGJHRIWKHEDWWOHDUHDWRWKHUHDUERXQGDU\RIWKH
FRPPDQG¶VVXERUGLQDWHXQLWV0&53
PDLQHIIRUW
$ GHVLJQDWHGVXERUGLQDWHXQLWZKRVHPLVVLRQDWDJLYHQSRLQWLQWLPHLVPRVWFULWLFDOWRRYHUDOOPLVVLRQ
VXFFHVV$'3,WLVXVXDOO\ZHLJKWHGZLWKWKHSUHSRQGHUDQFHRIFRPEDWSRZHUDQGLVGLUHFWHG
DJDLQVWDFHQWHURIJUDYLW\WKURXJKDFULWLFDOYXOQHUDELOLW\0&'3
PDQHXYHU
(PSOR\PHQWRIIRUFHVLQWKHRSHUDWLRQDODUHDWKURXJKPRYHPHQWLQFRPELQDWLRQZLWKILUHVDQG
LQIRUPDWLRQWRDFKLHYHDSRVLWLRQRIDGYDQWDJHLQUHVSHFWWRWKHHQHP\-30DULQH&RUSV
DPSOLILFDWLRQ7KHPRYHPHQWRIIRUFHVIRUWKHSXUSRVHRIJDLQLQJDQDGYDQWDJHRYHUWKHHQHP\
0DQHXYHULVRQHRIWKHZDUILJKWLQJIXQFWLRQV0&53
PHDVXUHRIHIIHFWLYHQHVV
$QLQGLFDWRUXVHGWRPHDVXUHDFXUUHQWV\VWHPVWDWHZLWKFKDQJHLQGLFDWHGE\FRPSDULQJPXOWLSOH
REVHUYDWLRQVRYHUWLPH-3

6HSWHPEHU $730&73& *ORVVDU\

*ORVVDU\

PHDVXUHRISHUIRUPDQFH
$QLQGLFDWRUXVHGWRPHDVXUHDIULHQGO\DFWLRQWKDWLVWLHGWRPHDVXULQJWDVNDFFRPSOLVKPHQW-3
PLOLWDU\GHFLVLRQPDNLQJSURFHVV
$QLWHUDWLYHSODQQLQJPHWKRGRORJ\WRXQGHUVWDQGWKHVLWXDWLRQDQGPLVVLRQGHYHORSDFRXUVHRIDFWLRQ
DQGSURGXFHDQRSHUDWLRQSODQRURUGHU$'3
PLVVLRQFRPPDQG
$UP\7KH$UP\¶VDSSURDFKWRFRPPDQGDQGFRQWUROWKDWHPSRZHUVVXERUGLQDWHGHFLVLRQPDNLQJ
DQGGHFHQWUDOL]HGH[HFXWLRQDSSURSULDWHWRWKHVLWXDWLRQ$'3
PRELOHGHIHQVH
$UP\$W\SHRIGHIHQVLYHRSHUDWLRQWKDWFRQFHQWUDWHVRQWKHGHVWUXFWLRQRUGHIHDWRIWKHHQHP\
WKURXJKDGHFLVLYHDWWDFNE\DVWULNLQJIRUFH$'30DULQH&RUSV'HIHQVHRIDQDUHDRU
SRVLWLRQLQZKLFKPDQHXYHULVXVHGZLWKRUJDQL]DWLRQRIILUHDQGXWLOL]DWLRQRIWHUUDLQWRVHL]HWKH
LQLWLDWLYHIURPWKHHQHP\0&53
PRGLILHGFRPELQHGREVWDFOHRYHUOD\
$ MRLQWLQWHOOLJHQFHSUHSDUDWLRQRIWKHRSHUDWLRQDOHQYLURQPHQWSURGXFWXVHGWRSRUWUD\WKHPLOLWDULO\
VLJQLILFDQWDVSHFWVRIWKHRSHUDWLRQDOHQYLURQPHQWVXFKDVREVWDFOHVUHVWULFWLQJPLOLWDU\PRYHPHQW
NH\JHRJUDSK\DQGPLOLWDU\REMHFWLYHV-3
PRYHPHQWDQGPDQHXYHUZDUILJKWLQJIXQFWLRQ
7KHUHODWHGWDVNVDQGV\VWHPVWKDWPRYHDQGHPSOR\IRUFHVWRDFKLHYHDSRVLWLRQRIUHODWLYHDGYDQWDJH
RYHUWKHHQHP\DQGRWKHUWKUHDWV$'3
PRYHPHQWWRFRQWDFW
$W\SHRIRIIHQVLYHRSHUDWLRQGHVLJQHGWRGHYHORSWKHVLWXDWLRQDQGHVWDEOLVKRUUHJDLQFRQWDFW
$'3
PXWXDOVXSSRUW
7KDWVXSSRUWZKLFKXQLWVUHQGHUHDFKRWKHUDJDLQVWDQHQHP\EHFDXVHRIWKHLUDVVLJQHGWDVNVWKHLU
SRVLWLRQUHODWLYHWRHDFKRWKHUDQGWRWKHHQHP\DQGWKHLULQKHUHQWFDSDELOLWLHV-3
REMHFWLYHUDOO\SRLQW
$QHDVLO\LGHQWLILDEOHSRLQWZKHUHDOOHOHPHQWVRIWKHLQILOWUDWLQJXQLWDVVHPEOHDQGSUHSDUHWRDWWDFN
WKHREMHFWLYH$'3
REVFXUDWLRQ
$UP\7KHHPSOR\PHQWRIPDWHULDOVLQWRWKHHQYLURQPHQWWKDWGHJUDGHRSWLFDODQGRUHOHFWURRSWLFDO
FDSDELOLWLHVZLWKLQVHOHFWSRUWLRQVRIWKHHOHFWURPDJQHWLFVSHFWUXPLQRUGHUWRGHQ\DFTXLVLWLRQE\RU
GHFHLYHDQHQHP\RUDGYHUVDU\$730DULQH&RUSV7KHHIIHFWVRIZHDWKHUEDWWOHILHOGGXVW
DQGGHEULVRUWKHXVHRIVPRNHPXQLWLRQVWRKDPSHUREVHUYDWLRQDQGWDUJHWDFTXLVLWLRQFDSDELOLW\RUWR
FRQFHDODFWLYLWLHVRUPRYHPHQW0&53
RSHUDWLRQVLQGHSWK
7KHVLPXOWDQHRXVDSSOLFDWLRQRIFRPEDWSRZHUWKURXJKRXWDQDUHDRIRSHUDWLRQV$'3
SHQHWUDWLRQ
$IRUPRIPDQHXYHULQZKLFKDQDWWDFNLQJIRUFHVHHNVWRUXSWXUHHQHP\GHIHQVHVRQDQDUURZIURQWWR
GLVUXSWWKHGHIHQVLYHV\VWHP)0
SUHSDUDWLRQILUH
1RUPDOO\DKLJKYROXPHRIILUHVGHOLYHUHGRYHUDVKRUWSHULRGRIWLPHWRPD[LPL]HVXUSULVHDQGVKRFN
HIIHFW3UHSDUDWLRQILUHLQFOXGHHOHFWURQLFDWWDFNDQGVKRXOGEHV\QFKURQL]HGZLWKRWKHUHOHFWURQLF
ZDUIDUHDFWLYLWLHV )0
SULPDU\SRVLWLRQ
$UP\7KHSRVLWLRQWKDWFRYHUVWKHHQHP\¶VPRVWOLNHO\DYHQXHRIDSSURDFKLQWRWKHDUHDRI
RSHUDWLRQV$'30DULQH&RUSV$SRVLWLRQWKDWSURYLGHVWKHEHVWPHDQVWRDFFRPSOLVKWKH
DVVLJQHGPLVVLRQ0&53

*ORVVDU\ $730&73& 6HSWHPEHU

 *ORVVDU\

SURWHFWLRQ
3UHVHUYDWLRQRIWKHHIIHFWLYHQHVVDQGVXUYLYDELOLW\RIPLVVLRQUHODWHGPLOLWDU\DQGQRQPLOLWDU\
SHUVRQQHOHTXLSPHQWIDFLOLWLHVLQIRUPDWLRQDQGLQIUDVWUXFWXUHGHSOR\HGRUORFDWHGZLWKLQRURXWVLGH
WKHERXQGDULHVRIDJLYHQRSHUDWLRQDODUHD-3
SURWHFWLRQZDUILJKWLQJIXQFWLRQ
7KHUHODWHGWDVNVDQGV\VWHPVWKDWSUHVHUYHWKHIRUFHVRWKHFRPPDQGHUFDQDSSO\PD[LPXPFRPEDW
SRZHUWRDFFRPSOLVKWKHPLVVLRQ$'3
SXUVXLW
$W\SHRIRIIHQVLYHRSHUDWLRQGHVLJQHGWRFDWFKRUFXWRIIDKRVWLOHIRUFHDWWHPSWLQJWRHVFDSHZLWKWKH
DLPRIGHVWUR\LQJLW$'30DULQH&RUSV$QRIIHQVLYHRSHUDWLRQGHVLJQHGWRFDWFKRUFXWRIID
KRVWLOHIRUFHDWWHPSWLQJWRHVFDSHZLWKWKHDLPRIGHVWUR\LQJLW0&53
UDLG
MRLQW$QRSHUDWLRQWRWHPSRUDULO\VHL]HDQDUHDWRVHFXUHLQIRUPDWLRQFRQIXVHDQHQHP\FDSWXUH
SHUVRQQHORUHTXLSPHQWRUWRGHVWUR\DFDSDELOLW\FXOPLQDWLQJZLWKDSODQQHGZLWKGUDZDO-3
0DULQH&RUSVDPSOLILFDWLRQ$QDWWDFNXVXDOO\VPDOOVFDOHLQYROYLQJDSHQHWUDWLRQRIKRVWLOHWHUULWRU\
IRUDVSHFLILFSXUSRVHRWKHUWKDQVHL]LQJDQGKROGLQJWHUUDLQ,WHQGVZLWKDSODQQHGZLWKGUDZDOXSRQ
FRPSOHWLRQRIWKHDVVLJQHGPLVVLRQ0&53
UHFRQQDLVVDQFH
$PLVVLRQXQGHUWDNHQWRREWDLQE\YLVXDOREVHUYDWLRQRURWKHUGHWHFWLRQPHWKRGVLQIRUPDWLRQDERXW
WKHDFWLYLWLHVDQGUHVRXUFHVRIDQHQHP\RUDGYHUVDU\RUWRVHFXUHGDWDFRQFHUQLQJWKHPHWHRURORJLFDO
K\GURJUDSKLFRUJHRJUDSKLFFKDUDFWHULVWLFVRIDSDUWLFXODUDUHD-3
UHFRQQDLVVDQFHLQIRUFH
$UP\$W\SHRIUHFRQQDLVVDQFHRSHUDWLRQGHVLJQHGWRGLVFRYHURUWHVWWKHHQHP\¶VVWUHQJWK
GLVSRVLWLRQVDQGUHDFWLRQVRUWRREWDLQRWKHULQIRUPDWLRQ$'30DULQH&RUSV$GHOLEHUDWH
DWWDFNPDGHWRREWDLQLQIRUPDWLRQDQGWRORFDWHDQGWHVWHQHP\GLVSRVLWLRQVVWUHQJWKVDQGUHDFWLRQV,W
LVXVHGZKHQNQRZOHGJHRIWKHHQHP\LVYDJXHDQGWKHUHLVLQVXIILFLHQWWLPHRUUHVRXUFHVWRGHYHORS
WKHVLWXDWLRQ0&53
UHGXFH
$WDFWLFDOPLVVLRQWDVNWKDWLQYROYHVWKHGHVWUXFWLRQRIDQHQFLUFOHGRUE\SDVVHGHQHP\IRUFH
)0
UHWDLQ
$UP\$WDFWLFDOPLVVLRQWDVNLQZKLFKWKHFRPPDQGHUHQVXUHVWKDWDWHUUDLQIHDWXUHFRQWUROOHGE\D
IULHQGO\IRUFHUHPDLQVIUHHRIHQHP\RFFXSDWLRQRUXVH)00DULQH&RUSV7RRFFXS\DQG
KROGDWHUUDLQIHDWXUHWRHQVXUHLWLVIUHHRIHQHP\RFFXSDWLRQRUXVH0&53
UHWLUHPHQW
$UP\:KHQDIRUFHRXWRIFRQWDFWPRYHVDZD\IURPWKHHQHP\$'30DULQH&RUSV$Q
RSHUDWLRQLQZKLFKDIRUFHRXWRIFRQWDFWPRYHVDZD\IURPWKHHQHP\0&53
UHWURJUDGH
$UP\$W\SHRIGHIHQVLYHRSHUDWLRQWKDWLQYROYHVRUJDQL]HGPRYHPHQWDZD\IURPWKHHQHP\
$'3MRLQW7KHSURFHVVIRUWKHPRYHPHQWRIQRQXQLWHTXLSPHQWDQGPDWHULHOIURPDIRUZDUG
ORFDWLRQWRDUHVHWUHSOHQLVKPHQWUHSDLURUUHFDSLWDOL]DWLRQSURJUDPRUWRDQRWKHUGLUHFWHGDUHDRI
RSHUDWLRQVWRUHSOHQLVKXQLWVWRFNVRUWRVDWLVI\VWRFNUHTXLUHPHQWV-30DULQH&RUSV
DPSOLILFDWLRQ$Q\PRYHPHQWRUPDQHXYHURIDFRPPDQGWRWKHUHDURUDZD\IURPWKHHQHP\
0&53
ULVNPDQDJHPHQW
7KHSURFHVVWRLGHQWLI\DVVHVVDQGFRQWUROULVNVDQGPDNHGHFLVLRQVWKDWEDODQFHULVNFRVWZLWK
PLVVLRQEHQHILWV-30DULQH&RUSVDPSOLILFDWLRQ7KHILYHVWHSVRIULVNPDQDJHPHQWDUHLGHQWLI\
WKHKD]DUGVDVVHVVWKHKD]DUGVGHYHORSFRQWUROVDQGPDNHULVNGHFLVLRQLPSOHPHQWFRQWUROVDQG
VXSHUYLVHDQGHYDOXDWH0&53

6HSWHPEHU $730&73& *ORVVDU\

*ORVVDU\

VHFXUH
$UP\$ WDFWLFDOPLVVLRQWDVNWKDWLQYROYHVSUHYHQWLQJDXQLWIDFLOLW\RUJHRJUDSKLFDOORFDWLRQIURP
EHLQJGDPDJHGRUGHVWUR\HGDVDUHVXOWRIHQHP\DFWLRQ)00DULQH&RUSV7RJDLQ
SRVVHVVLRQRIDSRVLWLRQWHUUDLQIHDWXUHSLHFHRILQIUDVWUXFWXUHRUFLYLODVVHWZLWKRUZLWKRXWIRUFH
DQGSUHYHQWLWVGHVWUXFWLRQRUORVVE\HQHP\DFWLRQ7KHDWWDFNLQJIRUFHPD\RUPD\QRWKDYHWR
SK\VLFDOO\RFFXS\WKHDUHD0&'3
VHFXULW\DUHD
$UP\7KDWDUHDWKDWRFFXSLHGE\DXQLW¶VVHFXULW\HOHPHQWVDQGLQFOXGHVWKHDUHDVRILQIOXHQFHRI
WKRVHVHFXULW\HOHPHQWV$'30DULQH&RUSV7KHDUHDWKDWEHJLQVDWWKHIRUZDUGHGJHRIWKH
EDWWOHDUHDDQGH[WHQGVDVIDUWRWKHIURQWDQGIODQNVDVVHFXULW\IRUFHVDUHGHSOR\HGQRUPDOO\WRWKH
IRUZDUGERXQGDU\RIWKHDUHDRIRSHUDWLRQV)RUFHVLQWKHVHFXULW\DUHDFRQGXFWUHFRQQDLVVDQFHWR
IXUQLVKLQIRUPDWLRQRQWKHHQHP\DQGWRGHOD\GHFHLYHDQGGLVUXSWWKHHQHP\0&53
VHFXULW\FRRSHUDWLRQ
$OO'HSDUWPHQWRI'HIHQVHLQWHUDFWLRQVZLWKIRUHLJQVHFXULW\HVWDEOLVKPHQWVWREXLOGVHFXULW\
UHODWLRQVKLSVWKDWSURPRWHVSHFLILF8QLWHG6WDWHVVHFXULW\LQWHUHVWVGHYHORSDOOLHGDQGSDUWQHUQDWLRQ
PLOLWDU\DQGVHFXULW\FDSDELOLWLHVIRUVHOIGHIHQVHDQGPXOWLQDWLRQDORSHUDWLRQVDQGSURYLGH8QLWHG
6WDWHVIRUFHVZLWKSHDFHWLPHDQGFRQWLQJHQF\DFFHVVWRDOOLHGDQGSDUWQHUQDWLRQV-3
VHFXULW\RSHUDWLRQV
7KRVHRSHUDWLRQVSHUIRUPHGE\FRPPDQGHUVWRSURYLGHHDUO\DQGDFFXUDWHZDUQLQJRIHQHP\
RSHUDWLRQVWRSURYLGHWKHIRUFHVEHLQJSURWHFWHGZLWKWLPHDQGPDQHXYHUVSDFHZLWKLQZKLFKWRUHDFW
WRWKHHQHP\DQGWRGHYHORSWKHVLWXDWLRQWRDOORZFRPPDQGHUVWRHIIHFWLYHO\XVHWKHLUSURWHFWHG
IRUFHV$'3
VKDSLQJRSHUDWLRQ
$QRSHUDWLRQDWDQ\HFKHORQWKDWFUHDWHVDQGSUHVHUYHVFRQGLWLRQVIRUVXFFHVVRIWKHGHFLVLYHRSHUDWLRQ
WKURXJKHIIHFWVRQWKHHQHP\RWKHUDFWRUVDQGWKHWHUUDLQ$'3
VLWXDWLRQWHPSODWH
MRLQW$ GHSLFWLRQRIDVVXPHGDGYHUVDU\GLVSRVLWLRQVEDVHGRQWKDWDGYHUVDU\¶VSUHIHUUHGPHWKRGRI
RSHUDWLRQVDQGWKHLPSDFWRIWKHRSHUDWLRQDOHQYLURQPHQWLIWKHDGYHUVDU\VKRXOGDGRSWDSDUWLFXODU
FRXUVHRIDFWLRQ-30DULQH&RUSVDPSOLILFDWLRQ$VHULHVRISURMHFWLRQVWKDWSRUWUD\EDVHG
RQHQHP\GRFWULQHWKHPRVWSUREDEOHGLVSRVLWLRQDQGORFDWLRQRIHQHP\IRUFHVZLWKLQFRQVWUDLQWV
LPSRVHGE\ZHDWKHUDQGWHUUDLQ0&53
VSDFHGRPDLQ
7KHDUHDDERYHWKHDOWLWXGHZKHUHDWPRVSKHULFHIIHFWVRQDLUERUQHREMHFWVEHFRPHQHJOLJLEOH-3
VWDELOLW\RSHUDWLRQ
$QRSHUDWLRQFRQGXFWHGRXWVLGHWKH8QLWHG6WDWHVLQFRRUGLQDWLRQZLWKRWKHULQVWUXPHQWVRIQDWLRQDO
SRZHUWRHVWDEOLVKRUPDLQWDLQDVHFXUHHQYLURQPHQWDQGSURYLGHHVVHQWLDOJRYHUQPHQWDOVHUYLFHV
HPHUJHQF\LQIUDVWUXFWXUHUHFRQVWUXFWLRQDQGKXPDQLWDULDQUHOLHI$'3
VWULNLQJIRUFH
$GHGLFDWHGFRXQWHUDWWDFNIRUFHLQDPRELOHGHIHQVHFRQVWLWXWHGZLWKWKHEXONRIDYDLODEOHFRPEDW
SRZHU$'3
VWURQJSRLQW
$UP\$KHDYLO\IRUWLILHGEDWWOHSRVLWLRQWLHGWRDQDWXUDORUUHLQIRUFLQJREVWDFOHWRFUHDWHDQDQFKRU
IRUWKHGHIHQVHRUWRGHQ\WKHHQHP\GHFLVLYHRUNH\WHUUDLQ$'30DULQH&RUSV$NH\SRLQW
LQDGHIHQVLYHSRVLWLRQXVXDOO\VWURQJO\IRUWLILHGDQGKHDYLO\DUPHGZLWKDXWRPDWLFZHDSRQVDURXQG
ZKLFKRWKHUSRVLWLRQVDUHJURXSHGIRULWVSURWHFWLRQ0&53
VXEVHTXHQWSRVLWLRQ
$SRVLWLRQWKDWDXQLWH[SHFWVWRPRYHWRGXULQJWKHFRXUVHRIEDWWOH$'3

*ORVVDU\ $730&73& 6HSWHPEHU

 *ORVVDU\

VXSSOHPHQWDU\SRVLWLRQ
$UP\$GHIHQVLYHSRVLWLRQORFDWHGZLWKLQDXQLW¶VDVVLJQHGDUHDRIRSHUDWLRQVWKDWSURYLGHVWKHEHVW
VHFWRUVRIILUHDQGGHIHQVLYHWHUUDLQDORQJDQDYHQXHRIDSSURDFKWKDWLVQRWWKHSULPDU\DYHQXHZKHUH
WKHHQHP\LVH[SHFWHGWRDWWDFN$'30DULQH&RUSV$SRVLWLRQWKDWSURYLGHVWKHEHVWPHDQVWR
DFFRPSOLVKDWDVNWKDWFDQQRWEHDFFRPSOLVKHGIURPWKHSULPDU\RUDOWHUQDWHSRVLWLRQ0&53
VXSSRUWDUHD
7KHSRUWLRQRIWKHFRPPDQGHU¶VDUHDRIRSHUDWLRQVWKDWLVGHVLJQDWHGWRIDFLOLWDWHWKHSRVLWLRQLQJ
HPSOR\PHQWDQGSURWHFWLRQRIEDVHVXVWDLQPHQWDVVHWVUHTXLUHGWRVXVWDLQHQDEOHDQGFRQWURO
RSHUDWLRQV$'3
VXSSRUWE\ILUH
$UP\$ WDFWLFDOPLVVLRQWDVNLQZKLFKDPDQHXYHUIRUFHPRYHVWRDSRVLWLRQZKHUHLWFDQHQJDJHWKH
HQHP\E\GLUHFWILUHLQVXSSRUWRIDQRWKHUPDQHXYHULQJIRUFH)00DULQH&RUSV7RHQJDJH
WKHHQHP\E\GLUHFWILUHWRVXSSRUWDPDQHXYHULQJIRUFHXVLQJRYHUZDWFKRUE\HVWDEOLVKLQJDEDVHRI
ILUH7KHVXSSRUWLQJIRUFHGRHVQRWFDSWXUHHQHP\IRUFHVRUWHUUDLQ0&53
VXSSRUWLQJGLVWDQFH
$UP\7KHGLVWDQFHEHWZHHQWZRXQLWVWKDWFDQEHWUDYHOHGLQWLPHIRURQHWRFRPHWRWKHDLGRIWKH
RWKHUDQGSUHYHQWLWVGHIHDWE\DQHQHP\RUHQVXUHLWUHJDLQVFRQWURORIDFLYLOVLWXDWLRQ$'3
0DULQH&RUSV7KHGLVWDQFHEHWZHHQWZRXQLWVWKDWFDQEHWUDYHOHGLQWLPHIRURQHWRFRPHWRWKHDLG
RIWKHRWKHU0&53
VXSSRUWLQJHIIRUW
$UP\$GHVLJQDWHGVXERUGLQDWHXQLWZLWKDPLVVLRQWKDWVXSSRUWVWKHVXFFHVVRIWKHPDLQHIIRUW
$'30DULQH&RUSV'HVLJQDWHGVXERUGLQDWHXQLWVZKRVHPLVVLRQLVGHVLJQHGWRGLUHFWO\
FRQWULEXWHWRWKHVXFFHVVRIWKHPDLQHIIRUW0&53
VXSSRUWLQJUDQJH
$UP\7KHGLVWDQFHRQHXQLWPD\EHJHRJUDSKLFDOO\VHSDUDWHGIURPDVHFRQGXQLW\HWUHPDLQZLWKLQ
WKHPD[LPXPUDQJHRIWKHVHFRQGXQLW¶VZHDSRQVV\VWHPV$'30DULQH&RUSV7KHGLVWDQFH
RQHXQLWPD\EHJHRJUDSKLFDOO\VHSDUDWHGIURPDVHFRQGXQLW\HWUHPDLQZLWKLQWKHPD[LPXPUDQJHRI
WKHVHFRQGXQLW¶VZHDSRQVV\VWHPV0&53
VXSSUHVV
$UP\$ WDFWLFDOPLVVLRQWDVNWKDWUHVXOWVLQWKHWHPSRUDU\GHJUDGDWLRQRIWKHSHUIRUPDQFHRIDIRUFH
RUZHDSRQV\VWHPEHORZWKHOHYHOQHHGHGWRDFFRPSOLVKLWVPLVVLRQ)0
VXUYHLOODQFH
7KHV\VWHPDWLFREVHUYDWLRQRIDHURVSDFHF\EHUVSDFHVXUIDFHRUVXEVXUIDFHDUHDVSODFHVSHUVRQVRU
WKLQJVE\YLVXDODXUDOHOHFWURQLFSKRWRJUDSKLFRURWKHUPHDQV-3 0DULQH&RUSVDPSOLILFDWLRQ
7KHV\VWHPDWLFYLVXDORUDXUDOREVHUYDWLRQRIDQHQHP\IRUFHRUQDPHGDUHDRILQWHUHVWRUDQDUHDDQG
WKHDFWLYLWLHVLQLWWRFROOHFWLQWHOOLJHQFHUHTXLUHGWRFRQILUPRUGHQ\HQHP\DGYHUVDU\FRXUVHVRIDFWLRQ
RULGHQWLI\HQHP\DGYHUVDU\FULWLFDOYXOQHUDELOLWLHVDQGOLPLWDWLRQV0&53
VXUYLYDELOLW\
$UP\0DULQH&RUSV$TXDOLW\RUFDSDELOLW\RIPLOLWDU\IRUFHVZKLFKSHUPLWVWKHPWRDYRLGRU
ZLWKVWDQGKRVWLOHDFWLRQVRUHQYLURQPHQWDOFRQGLWLRQVZKLOHUHWDLQLQJWKHDELOLW\WRIXOILOOWKHLUSULPDU\
PLVVLRQ$730&73&MRLQW$OODVSHFWVRISURWHFWLQJSHUVRQQHOZHDSRQVDQG
VXSSOLHVZKLOHVLPXOWDQHRXVO\GHFHLYLQJWKHHQHP\-30DULQH&RUSVDPSOLILFDWLRQ7KH
GHJUHHWRZKLFKDV\VWHPLVDEOHWRDYRLGRUZLWKVWDQGDPDQPDGHKRVWLOHHQYLURQPHQWZLWKRXW
VXIIHULQJDQDERUWLYHLPSDLUPHQWRILWVDELOLW\WRDFFRPSOLVKLWVGHVLJQDWHGPLVVLRQ0&53
VXUYLYDELOLW\RSHUDWLRQV
7KRVHSURWHFWLRQDFWLYLWLHVWKDWDOWHUWKHSK\VLFDOHQYLURQPHQWE\SURYLGLQJRULPSURYLQJFRYHU
FDPRXIODJHDQGFRQFHDOPHQW$730&73&
VXVWDLQLQJRSHUDWLRQ
$QRSHUDWLRQDWDQ\HFKHORQWKDWHQDEOHVWKHGHFLVLYHRSHUDWLRQRUVKDSLQJRSHUDWLRQVE\JHQHUDWLQJ
DQGPDLQWDLQLQJFRPEDWSRZHU$'3

6HSWHPEHU $730&73& *ORVVDU\

*ORVVDU\

VXVWDLQPHQWZDUILJKWLQJIXQFWLRQ
7KHUHODWHGWDVNVDQGV\VWHPVWKDWSURYLGHVXSSRUWDQGVHUYLFHVWRHQVXUHIUHHGRPRIDFWLRQH[WHQGHG
RSHUDWLRQDOUHDFKDQGSURORQJHQGXUDQFH$'3
WDFWLFDOFRPEDWIRUFH
$ UDSLGO\GHSOR\DEOHDLUJURXQGPRELOHFRPEDWXQLWZLWKDSSURSULDWHFRPEDWVXSSRUWDQGFRPEDW
VHUYLFHVXSSRUWDVVHWVDVVLJQHGWRDQGFDSDEOHRIGHIHDWLQJ/HYHO,,,WKUHDWVLQFOXGLQJFRPELQHG
DUPV-3
WDUJHWLQJ
7KHSURFHVVRIVHOHFWLQJDQGSULRULWL]LQJWDUJHWVDQGPDWFKLQJWKHDSSURSULDWHUHVSRQVHWRWKHP
FRQVLGHULQJRSHUDWLRQDOUHTXLUHPHQWVDQGFDSDELOLWLHV-3
WDUJHWUHIHUHQFHSRLQW
$SUHGHWHUPLQHGSRLQWRIUHIHUHQFHQRUPDOO\DSHUPDQHQWVWUXFWXUHRUWHUUDLQIHDWXUHWKDWFDQEHXVHG
ZKHQGHVFULELQJDWDUJHWORFDWLRQ-30DULQH&RUSVDPSOLILFDWLRQ$QHDVLO\UHFRJQL]DEOH
SRLQWRQWKHJURXQGHLWKHUQDWXUDORUPDQPDGHXVHGWRLQLWLDWHGLVWULEXWHDQGFRQWUROILUHV
0&53
WHPSR
7KHUHODWLYHVSHHGDQGUK\WKPRIPLOLWDU\RSHUDWLRQVRYHUWLPHZLWKUHVSHFWWRWKHHQHP\$'3
DQG0&53
WXUQLQJPRYHPHQW
$UP\$IRUPRIPDQHXYHULQZKLFKWKHDWWDFNLQJIRUFHVHHNVWRDYRLGWKHHQHP\¶VSULQFLSOH
GHIHQVLYHSRVLWLRQVE\VHL]LQJREMHFWLYHVEHKLQGWKHHQHP\¶VFXUUHQWSRVLWLRQVWKHUHE\FDXVLQJWKH
HQHP\IRUFHWRPRYHRXWRIWKHLUFXUUHQWSRVLWLRQVRUGLYHUWPDMRUIRUFHVWRPHHWWKHWKUHDW
)0
ZDUILJKWLQJIXQFWLRQ
$JURXSRIWDVNVDQGV\VWHPVXQLWHGE\DFRPPRQSXUSRVHWKDWFRPPDQGHUVXVHWRDFFRPSOLVK
PLVVLRQVDQGWUDLQLQJREMHFWLYHV$'3
ZLWKGUDZ
7RGLVHQJDJHIURPDQHQHP\IRUFHDQGPRYHLQDGLUHFWLRQDZD\IURPWKHHQHP\$'3

*ORVVDU\ $730&73& 6HSWHPEHU

 5HIHUHQFHV

$OO85/VDFFHVVHGRQ-XQH

5(48,5('38%/,&$7,216
5HDGHUVUHTXLUHWKHVHSXEOLFDWLRQVIRUIXQGDPHQWDOFRQFHSWVWHUPVDQGGHILQLWLRQV7KHVHGRFXPHQWV
PXVWEHDYDLODEOHWRWKHLQWHQGHGXVHUVRIWKLVSXEOLFDWLRQ
DOD Dictionary of Military and Associated Terms-DQXDU\
$'3Terms and Military Symbols$XJXVW
)0Operational Terms.1RYHPEHU
0&53Marine Corps Supplement to the DOD Dictionary of Military and Associated Terms
)HEUXDU\

5(/$7('38%/,&$7,216
7KHVHSXEOLFDWLRQVFRQWDLQUHOHYDQWVXSSOHPHQWDOLQIRUPDWLRQDQGDUHFLWHGLQWKLVSXEOLFDWLRQ

-2,17$1' '(3$570(172)'()(16(38%/,&$7,216
0RVWMRLQWSXEOLFDWLRQVDUHDYDLODEOHRQOLQHDW KWWSVZZZMFVPLO'RFWULQH-RLQW'RFWULQH3XEV
0RVW'HSDUWPHQWRI'HIHQVHLVVXDQFHVDUHDYDLODEOHRQOLQHDW
KWWSVZZZHVGZKVPLO'''R',VVXDQFHV
'2''DoD Intelligence Interrogations, Detainee Debriefings, and Tactical Questioning
2FWREHU
-3Doctrine for the Armed Forces of the United States0DUFK
-3Joint Intelligence2FWREHU
-3Joint Intelligence Preparation of the Operational Environment0D\
-3Joint Operations-DQXDU\
-3Countering Air and Missile Threats$SULO
-3Amphibious Operations.-DQXDU\
-3Stability.$XJXVW
-3Joint Fire Support$SULO
-3Close Air Support-XQH
-3Joint Security Operations in Theater-XO\
-3Operations in Chemical, Biological, Radiological, and Nuclear Environments
2FWREHU
-3Cyberspace Operations-XQH
-3Information Operations1RYHPEHU
-3Space Operations$SULO
-3Joint Forcible Entry Operations -XQH
-3Security Cooperation0D\
-3Joint Land Operations2FWREHU
-3Joint Engineer Operations-DQXDU\
-3Joint Targeting6HSWHPEHU

6HSWHPEHU $730&73& 5HIHUHQFHV

5HIHUHQFHV

-3Joint Logistics)HEUXDU\
-3Distribution Operations (U//FOUO)0DUFK
-3Joint Planning-XQH

08/7,6(59,&(38%/,&$7,216
0RVW$UP\GRFWULQDOSXEOLFDWLRQVDUHDYDLODEOHRQOLQHDWKWWSVDUP\SXEVPLO :KHQDSSOLFDEOHROG
0DULQH&RUSVQRPHQFODWXUHLVLQSDUHQWKHVLVIROORZLQJQHZQRPHQFODWXUH
$730&53)1773$)773Multi-Service Tactics, Techniques, and
Procedures for Tactical Employment of Biometrics in Support of Operations$SULO
$730&530&53$1773$)773Multi-Service Tactics,
Techniques, and Procedures for the Tactical Employment of Unmanned Aircraft Systems
-DQXDU\
$730&531773$)773Multi-Service Tactics, Techniques, and
Procedures for Joint Application of Firepower2FWREHU
$730&:3(1773$)773 Multi-Service Tactics, Techniques, and
Procedures for Chemical, Biological, Radiological, and Nuclear Passive Defense
 0D\ 
$730&53(1773$)773Multi-Service Tactics, Techniques, and
Procedures for Chemical, Biological, Radiological, and Nuclear Planning
6HSWHPEHU
$730&73' Tactical Employment of Mortars2FWREHU
$730&53%0&53% Environmental Considerations$XJXVW
$730&73& Survivability Operations$SULO
$730&531773$)733Multi-Service Tactics, Techniques, and
Procedures for Survival, Evasion and Recovery$XJXVW
$730&53$0&53$1773$)773Multi-Service Tactics,
Techniques, and Procedures for Air-to-Surface Radar System Employment2FWREHU
$730&53$0&53& Multi-Service Techniques for Civil Affairs Support to
Foreign Humanitarian Assistance)HEUXDU\
$730&73$0&:3 Combined Arms Mobility.0DUFK
$730&53(0&53$ Recovery and Battle Damage Assessment and Repair
(BDAR). $XJXVW
$730&53'0&534 Water Support Operations 2FWREHU
$730&53%1773$)773Multi-Service Tactics, Techniques, and
Procedures for Tactical Radios. 0D\
)00&73& The Commander’s Handbook on the Law of Land Warfare $XJXVW
7%0('1$90('3$)0$1B,3Tri-Service Food Code0DUFK

$50<38%/,&$7,216
0RVW$UP\GRFWULQDOSXEOLFDWLRQVDQGUHJXODWLRQVDUHDYDLODEOHRQOLQHDWKWWSVDUP\SXEVPLO
$'3Operations-XO\
$'3Stability-XO\
$'3Protection-XO\
$'3Offense and Defense-XO\
$'3The Operations Process-XO\
$'3Mission Command: Command and Control of Army Forces-XO\
$'3Army Leadership and the Profession-XO\

5HIHUHQFHV $730&73& 6HSWHPEHU

 5HIHUHQFHV

$5Army Human Intelligence Collection Programs (S//NF) )HEUXDU\7KLV

FODVVLILHGSXEOLFDWLRQLVDYDLODEOHRQ6,351(7
$73Intelligence Preparation of the Battlefield0DUFK
$73Brigade Combat Team Intelligence Techniques)HEUXDU\
$73Biometrics-Enabled Intelligence (U)1RYHPEHU
$73 Intelligence Analysis-DQXDU\
$73Techniques for Combined Arms for Air Defense-XO\
$73Aviation Tactical Employment. 0D\
$73Observed Fires. 6HSWHPEHU
$73The Field Artillery Cannon Battery. 0D\
$73Battlefield Obscuration0D\
$73Special Forces Air Operations. )HEUXDU\
$73Infantry Platoon and Squad$SULO
$73Foot Marches. $SULO
$73Foreign Security Force Threats-DQXDU\
$73Security and Mobility Support0D\
$73Survival6HSWHPEHU
$73Targeting0D\
$73Army Watercraft Operations.$SULO
$73Unit Field Sanitation Teams$SULO
$73Casualty Evacuation)HEUXDU\
$73Maintenance Operations-XO\
$73Petroleum Supply Operations$XJXVW
$73Contingency Fatality Operations.'HFHPEHU
$73 Risk Management$SULO
$73Techniques for Effective Knowledge Management0DUFK
$73Techniques for Tactical Radio Operations)HEUXDU\
$73Techniques for Satellite Communications. -XQH
)0Intelligence-XO\
)0Human Intelligence Collector Operations6HSWHPEHU
)0Operations2FWREHU
)0Fire Support and Field Artillery Operations$SULO
)0Chemical, Biological, Radiological, and Nuclear Operations0D\
)0Cyberspace and Electronic Warfare Operations. $SULO
)0Army Space Operations2FWREHU
)0Army Support to Security Cooperation-DQXDU\
)0Information Collection0D\
)0Long-Range Surveillance Unit Operations-XQH
)0Offense and Defense, Volume 10DUFK
)0Reconnaissance, Security, and Tactical Enabling Tasks Volume 20DUFK
)0Reconnaissance and Security Operations-XO\
)0Airborne and Air Assault Operations0DUFK
)0Commander and Staff Organization and Operations0D\
)0Leader Development-XQH
*7$Survivability Positions$XJXVW

6HSWHPEHU $730&73& 5HIHUHQFHV

5HIHUHQFHV

7&Visual Signals0DUFK
7& The Warrior Ethos and Soldier Combat Skills. $XJXVW
7&Rifle and Carbine0D\
7&Mortars0DUFK
7&Map Reading and Land Navigation1RYHPEHU
7&Military Mountaineering. -XO\
7&First Aid-DQXDU\
7&Water Survival Training-XQH
70Painting Instructions for Army Materiel-XQH

0$5,1(&253638%/,&$7,216
0RVW0DULQH&RUSVGRFWULQDOSXEOLFDWLRQVDUHDYDLODEOHRQOLQHDW
KWWSVKRPHSRUWXVPFPLOVLWHVPFGRFWULQHVLWHSDJHVKRPHDVS[
0&'3Warfighting.-XQH
0&'3Marine Corps Operations.$XJXVW
0&'3Tactics.-XO\
0&'3Command and Control2FWREHU
0&53Organization of the United States Marine Corps$XJXVW
0&53$Counterintelligence and Human Intelligence1RYHPEHU
0&53$0&:3Ground Reconnaissance Operations1RYHPEHU
0&53%0&53$Intelligence Preparation of the Battlefield/Battlespace
1RYHPEHU
0&53%0&53$Helicopter Rope Suspension Techniques (HRST) Operations.
$XJXVW
0&53(0&:3Tactics, Techniques, and Procedures for the Field Artillery Cannon
Battery'HFHPEHU
0&530&:3Unmanned Aircraft Systems Operations'HFHPEHU
0&53'0&:3Electronic Warfare.6HSWHPEHU
0&53%0&:3Petroleum and Water Logistics Operations-XQH
0&53%Marine Corps Water Survival0D\
0&53$0&53&Mountain Leader’s Guide to Mountain Warfare Operations
)HEUXDU\
0&73%0&:3MAGTF Intelligence Production and Analysis6HSWHPEHU
0&73&>0&:3@Marine Air-Ground Task Force Intelligence Dissemination-XO\
0&73$0&:3Scouting and Patrolling -XO\
0&73%Air Assault Operations. )HEUXDU\
0&73(0&:3Artillery Operations. 0D\
0&73(Maintenance Operations. -DQXDU\
0&:30&:3Intelligence Operations.6HSWHPEHU
0&:3Offensive and Defensive Tactics6HSWHPEHU
0&:3Stability Operations. 'HFHPEHU
0&:3MAGTF Ground Operations1RYHPEHU
0&:30&:3Aviation Operations.0D\
0&:30&:3Marine Air-Ground Task Force Information Operations-XO\
0&:30&:3Marine Corps Planning Process.$XJXVW
0&:30&:3Leading Marines.$XJXVW

5HIHUHQFHV $730&73& 6HSWHPEHU

 5HIHUHQFHV

27+(538%/,&$7,216
$OOLHG7DFWLFDO3XEOLFDWLRQ%Allied Land Tactics$XJXVWKWWSVQVRQDWRLQWQVR
Field Operations Guide for Disaster Assessment and Response9HUVLRQ86$JHQF\IRU
,QWHUQDWLRQDO'HYHORSPHQW6HSWHPEHU
KWWSVZZZXVDLGJRYVLWHVGHIDXOWILOHVGRFXPHQWVIRJBYBSGI

:(%6,7(6
7KLVVHFWLRQOLVWVFLWHGZHEVLWHVDQGWKHLUOLQNV
%LRORJLFDODQG7R[LQ:HDSRQV&RQYHQWLRQ86'HSDUWPHQWRI6WDWH:HEVLWH
KWWSVZZZVWDWHJRYWLVQEZFKWP
&HQWHUIRU$UP\/HVVRQV/HDUQHGKWWSVFDOODUP\PLO
&KHPLFDO:HDSRQV&RQYHQWLRQ2UJDQL]DWLRQIRUWKH3URKLELWLRQRI&KHPLFDO:HDSRQV:HEVLWH
KWWSVZZZRSFZRUJFKHPLFDOZHDSRQVFRQYHQWLRQ
(OHFWURQLFDOD Foreign Clearance Guide (FCG) KWWSVZZZIFJSHQWDJRQPLO

35(6&5,%(')2506
7KLVVHFWLRQFRQWDLQVQRHQWULHV

5()(5(1&(')2506
8QOHVVRWKHUZLVHLQGLFDWHG'$IRUPVDUHDYDLODEOHRQWKH$3':HEVLWHKWWSVDUP\SXEVDUP\PLO
'$)RUPRecommended Changes to Publications and Blank Forms

6HSWHPEHU $730&73& 5HIHUHQFHV



7KLVSDJHLQWHQWLRQDOO\OHIWEODQN



$
DLUDQGPLVVLOHGHIHQVH±

DFWLYHPHDVXUHV
SDVVLYHPHDVXUHV
DLUDVVDXOW

DLUERUQHRSHUDWLRQV
DPEXVK±
GHIHQVHDJDLQVW±
DPSKLELRXVFRPEDWYHKLFOH
DPSKLELRXVRSHUDWLRQ
DUHDGHIHQVH±
DUHDVHFXULW\±
DUPRU±
LQWKHGHIHQVH
UHVWULFWLRQVLQMXQJOH
WLSVIRUPRYHPHQW
DPSKLELRXVDVVDXOWYHKLFOH
DWWDFN±
DWWDFNSRLQWPHWKRG$
DYHQXHVRIDSSURDFK±
±
%
EDWWHULHV
EDWWHU\GHIHQVH±
EDWWOHGDPDJHDVVHVVPHQWDQG
UHSDLU
EDWWOHSRVLWLRQV
GXULQJGHOD\
PRYHPHQWEHWZHHQ±
W\SHV
860&GHILQLWLRQ
ELRORJLFDOZHDSRQV±
ELRPHWULFV
%UDGOH\ILJKWLQJYHKLFOH
&
FDPRXIODJH±
FDVXDOW\±
HYDFXDWLRQ±
FKHPLFDOZHDSRQV±
6HSWHPEHU
,QGH[
(QWULHVDUHE\SDUDJUDSKQXPEHU
FKHPLFDOELRORJLFDOUDGLRORJLFDO
DQGQXFOHDURSHUDWLRQV±

GHIHQVH
WUDLQLQJ
ZHDWKHUHIIHFWVRQ±

FLYLOFRQWURO±
FLYLOVHFXULW\±
FLYLOPLOLWDU\RSHUDWLRQV±
±
FLYLOPLOLWDU\RSHUDWLRQVFHQWHU
±±

FODVVHVRIVXSSO\±

FRKHUHQWFKDQJH
FROG
FROODWHUDOGDPDJH± GLVHDVH±
FRPEDWORDG&&
FRPEDWSRZHU±±
± GLVWULEXWLRQRSHUDWLRQV±
FRPELQHGDUPV±
FRPPDQGDQGFRQWUROZDUILJKWLQJ
IXQFWLRQ±±
±±
FRPPDQGSRVW±
FRQVROLGDWHJDLQV±
±
FRQVROLGDWLRQDUHD±

FRQWUROPHDVXUHV

DQGIUDWULFLGHSUHYHQWLRQ'±
''
GXULQJLQILOWUDWLRQ
LQWKHGHIHQVH±
LQGLUHFWILUH
FRXQWHUDWWDFN
FRXQWHUPRELOLW\±±

FRXQWHUUHFRQQDLVVDQFH
FRYHUDQGFRQFHDOPHQW±

$730&73&
FULWLFDODVVHWOLVW

F\EHUVSDFH
±
'
GHIHQGHGDVVHWOLVW

GHIHQGLQJHQFLUFOHG±
GHIHQVHFKDUDFWHULVWLFVRI±

W\SHVRIRSHUDWLRQV±
GHK\GUDWLRQ±
SUHYHQWLRQ±
V\PSWRPVDQGHIIHFWVRI
±
GHOD\±
GLHW
GLVHQJDJHPHQWOLQH
GLVPRXQWHGLQIDQWU\

(
HFRQRP\RIIRUFH±

HOHFWURPDJQHWLFVSHFWUXP±
±
HOHFWURQLFZDUIDUH
HQJDJHPHQWDUHD
HQYLURQPHQWDOHIIHFWVRQ
HTXLSPHQW±
RQSHUVRQQHO±
H[ILOWUDWLRQ±
H[SORLWDWLRQ±
)
IDPLO\RIVFDWWHUDEOHPLQHV
ILHOGDUWLOOHU\±
LQWKHGHIHQVH±
ILQDOSURWHFWLYHILUH
ILQDOSURWHFWLYHOLQH
,QGH[
,QGH[
ILUHVXSSRUW
DFTXLVLWLRQDQGHQJDJHPHQW
UDQJHV±
PRELOLW\
PXQLWLRQV±
REVHUYDWLRQ
SRVLWLRQLQJ±
UHJLVWUDWLRQ MRLQWRSHUDWLRQV± PRUWDUV±
ILUHVXSSRUWFRRUGLQDWLRQ
PHDVXUHV
''
ILUHVZDUILJKWLQJIXQFWLRQ
±±
IRUFHSURWHFWLRQ
IRUFHWDLORULQJ±
IRUPVRIPDQHXYHU±
IRUPVRIWKHGHIHQVH± /
IRUWLILHGSRVLWLRQV ODWULQH ±±±
IUDWULFLGH±'±
'
IURQWDODVVDXOW±
IXQGDPHQWDOV±
*
JDSFURVVLQJ
+
KHDOWKFRQVLGHUDWLRQV±
±
KHDWFUDPSV
KHDWH[KDXVWLRQ
KHDWLQMXULHV±
SUHYHQWLRQ±
KHDWUDVK
KHDWVWURNH
KXPDQLWDULDQDVVLVWDQFH±

K\JLHQH
,
LQGLUHFWILUHDGMXVWE\VRXQG
±
LQILOWUDWLRQ±
FRQWUROPHDVXUHV
ODQHV±
LQIRUPDWLRQ
LQIRUPDWLRQFROOHFWLRQ± 
LQIRUPDWLRQHQYLURQPHQW±

LQIRUPDWLRQZDUILJKWLQJIXQFWLRQ
±±

LQWHOOLJHQFH±
,QGH[
(QWULHVDUHE\SDUDJUDSKQXPEHU
LQWHOOLJHQFHSUHSDUDWLRQRIWKH
EDWWOHILHOGEDWWOHVSDFH
LQWHOOLJHQFHZDUILJKWLQJIXQFWLRQ
±±

-
MXQJOHW\SHVRI±
MXQJOHWHUUDLQ±
.
NH\WHUUDLQ±±

NQRZOHGJHPDQDJHPHQW±

OHDGHUVKLS±
OLJKWDUPRUHGYHKLFOH
OLQHDUGHIHQVH±
OLQNXS±
ORJLVWLFV±

0
PDLQDQGVXSSRUWLQJHIIRUW±

PDLQEDWWOHDUHD

PDLQWHQDQFH±
±
0DULQHDLUJURXQGWDVNIRUFHV

0DULQH&RUSVSODQQLQJSURFHVV

PHDVXUHVRIHIIHFWLYHQHVV±

PHDVXUHVRISHUIRUPDQFH±

PHFKDQL]HGLQIDQWU\±
PHGLFDOWUDLQLQJ
PLOLWDU\GHFHSWLRQ

PLOLWDU\GHFLVLRQPDNLQJSURFHVV
PLOLWDU\LQIRUPDWLRQVXSSRUWJURXS

PLOLWDU\SROLFH
PLVVLRQFRPPDQG
PLVVLRQYDULDEOHV

$730&73&
PLVVLRQRULHQWHGSURWHFWLYH
SRVWXUH±
PRELOHGHIHQVH±
PRELOLW\±±

PRELOLW\FRUULGRUV
PRUWXDU\DIIDLUV±
PRYHPHQW±
GXULQJOLPLWHGYLVLELOLW\$±
$
MXQJOHWHFKQLTXHV±
PRYHPHQWDQGPDQHXYHU±

PRYHPHQWDQG
PDQHXYHUPDQHXYHU
ZDUILJKWLQJIXQFWLRQ

PRYHPHQWWRFRQWDFW±

PXOWLSOHODXQFKURFNHWV\VWHP
±
PXWXDOVXSSRUW
LQWKHGHIHQVH

1
QDYDOJXQILUH±
QRQFRPEDWDQWV±
QRQJRYHUQPHQWDORUJDQL]DWLRQ
±

QXFOHDUZHDSRQV±
2
REMHFWLYHUDOO\SRLQW&
REVFXUDWLRQ±
REVHUYDWLRQDQGILHOGVRIILUH
±
REVWDFOHV±
RIIHQVHFKDUDFWHULVWLFVRI±

W\SHVRIRSHUDWLRQV±
RIIVHWPHWKRG$
RSHUDWLRQDOIUDPHZRUN±
RSHUDWLRQDOYDULDEOHV
RSHUDWLRQVLQGHSWK±
3±4
SHULPHWHUGHIHQVH±
<VKDSHG±
SRSXODWLRQDQGUHVRXUFHFRQWURO

6HSWHPEHU

SRVLWLRQDUHDDUWLOOHU\±

SUHSDUDWLRQILUH
SUHYHQWLYHPHGLFLQH±

WUDLQLQJ
SURWHFWLRQIRUFHSURWHFWLRQ
ZDUILJKWLQJIXQFWLRQ±
±
±
SXUVXLW
5
UDGDUJURXQGVXUYHLOODQFH
UDGLRFRPPXQLFDWLRQ±
UDLG±
UHDUDUHDVHFXULW\
UHFRJQLWLRQVLJQDOV±

UHFRQQDLVVDQFH± H[SRVXUH±
UHFRQQDLVVDQFHE\ILUH
UHFRQQDLVVDQFHLQIRUFH±

UHVHFWLRQ$±$
UHVHUYH±±

UHWLUHPHQW±
UHWURJUDGH
UHYHUVHVORSHGHIHQVH±
ULVNPDQDJHPHQW
ULVNUHGXFWLRQFRQWUROPHDVXUHV

6
VHFWRU WDUJHWLQJ±
6HSWHPEHU
(QWULHVDUHE\SDUDJUDSKQXPEHU
VHFXULW\
DFWLYHPHDVXUHV
SDVVLYHPHDVXUHV±
 
VHFXULW\DUHD±

VHFXULW\FRRSHUDWLRQ
VHFXULW\RSHUDWLRQV±
VSDFH±
VWDELOLW\RSHUDWLRQVWDVNV
±
VWULNLQJIRUFH±

VWURQJSRLQW
6WU\NHU
VXSSO\URXWHV±
VXSSRUWDUHD
VXSSRUWLQJGLVWDQFH

VXSSRUWLQJUDQJH

VXUYHLOODQFH
VXUYLYDELOLW\RSHUDWLRQV±

VXUYLYDELOLW\SRVLWLRQV±

VXVWDLQPHQWORJLVWLFV
SODQQLQJIRU±
VXVWDLQPHQWZDUILJKWLQJIXQFWLRQ
±±
7
WDFWLFDOFRPEDWIRUFH
±
$730&73&
,QGH[
WUDFNLQJ$±$
WHFKQLTXHVWRGHIHDW$
WUDQVLWLRQWRFLYLODXWKRULW\±
WRVWDELOLW\RSHUDWLRQV±

WRWKHRIIHQVH±
WRWKHUHWURJUDGH±
WXUQLQJPRYHPHQW
8
XQLIRUP±
PRGLILFDWLRQVWR
XQPDQQHGDLUFUDIWV\VWHPV
9
YHJHWDWLRQ±
:±;±<±=
ZDWHU±
FRQVXPSWLRQ
SODQQLQJFRQVLGHUDWLRQV
±
UHTXLUHPHQWV±
VWRUDJHWHFKQLTXHV±

ZDWHUVXUYLYDOWUDLQLQJ
ZHWEXOEJOREHWHPSHUDWXUHLQGH[
±
ZLOGOLIH±
LQVHFWV±
OHHFKHV±
UHSWLOHV
VQDNHV
ZLWKGUDZ±
ZRUNUHVWDQGZDWHUFRQVXPSWLRQ

,QGH[
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
 $73/
0&73&
6HSWHPEHU

%\2UGHURIWKH6HFUHWDU\RIWKH$UP\

-$0(6&0&&219,//(
General, United States Army
Chief of Staff
2IILFLDO

.$7+/((160,//(5
$GPLQLVWUDWLYH$VVLVWDQW
WRWKH6HFUHWDU\RIWKH$UP\


',675,%87,21
Active Army, the Army National Guard/Army National Guard of the United States, United
States Army Reserve, Marine Corps, and United States Marine Corps Reserve. Distributed in
electronic media only (EMO).

Reviewed and approved this date.

SCOTT A. GEHRIS
Colonel, United States Marine Corps
Commanding Officer, Marine Corps Tactics and
Operations Group
MARINE CORPS PCN: 147 000044 00 3,1207511