([WUDFWVIURP ,(&32:(5,167$//$7,216 (;&((',1*.9$&± 3$57&2002158/(6 7KHLQIRUPDWLRQJLYHQLQWKLVVHFWLRQLVDQH[WUDFWIURP,(&3RZHULQVWDOODWLRQV H[FHHGLQJN9DF&RPPRQUXOHV )RUIXOOWH[WVHHWKHUHOHYDQWVWDQGDUG7KHQXPEHULQJIROORZVWKHQXPEHULQJLQWKHVWDQGDUGZLWK SUHFHGLQJ5H &RS\ULJKW,(&*HQHYD6ZLW]HUODQGZZZLHFFK
5H)81'$0(17$/5(48,5(0(176 5H*HQHUDO ,QVWDOODWLRQVDQG ,QVWDOODWLRQVDQG HTXLSPHQW HTXLSPHQW VKDOOEH FDSDEOHRI ZLWKVWDQGLQJ ZLWKVWDQGLQJ HOHFWULFDO HOHFWULFDO PHFKDQLFDO PHFKDQLFDO FOLPDWLF FOLPDWLF DQG HQYLURQPHQWDOLQIOXHQFHVDQWLFLSDWHGRQVLWH 7KHUHOHYDQWODZVRUUHJXODWLRQVRIDQDXWKRULW\KDYLQJMXULVGLFWLRQVKDOOKDYHSUHFHGHQFH
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±0LQLPXPFOHDUDQFHVLQDLU±9ROWDJHUDQJH,N98 PN9
9ROWDJH UDQJH
1RPLQDO YROWDJHRI V\VWHP Q 8 Q
P 8 P
UPV
UPV
N9
N9
D E F
5DWHGVKRUW GXUDWLRQSRZHU IUHTXHQF\ ZLWKVWDQGYROWDJH
5DWHGOLJKWQLQJ LPSXOVH ZLWKVWDQG D YROWDJH
UPV
V SHDNYDOXH
,QGRRU LQVWDOODWLRQV
2XWGRRU LQVWDOODWLRQV
N9
N9
PP
PP
0LQLPXPSKDVHWRHDUWKDQG F SKDVHWRSKDVHFOHDUDQFH1
E E E E E E E E E 7KHUDWHGOLJKWQLQJLPSXOVHLVDSSOLFDEOHWRSKDVHWRSKDVHDQGSKDVHWRHDUWK ,IYDOXHVDUHFRQVLGHUHGLQVXIILFLHQWWRSURYHWKDWWKHUHTXLUHGSKDVHWRSKDVHZLWKVWDQGYROWDJHVDUHPHW DGGL DGGLWL WLRQ RQDO DOS SKD KDVH VHW WRS RSKD KDVH VHZ ZLWK LWKVW VWDQ DQG GWH WHVW VWV VDUH DUHQ QHH HHGH GHG G )RUURGVWUXFWXUH
,
+LJKHVW YROWDJHIRU HTXLSPHQW
3DJH7UDQVIRUPHU+DQGERRN
5H (48,30(17 5H*HQHUDOUHTXLUHPHQWV 5H6HOHFWLRQ
(TXLSPHQWVKDOOEHVHOHFWHGDQGLQVWDOOHGWRVDWLVI\WKHIROORZLQJUHTXLUHPHQWV D
VDIHFRQVWUXFWLRQZKHQSURSHUO\DVVHPEOHGLQVWDOOHGDQGFRQQHFWHGWRVXSSO\
E
VDIHDQGSURSHUSHUIRUPDQFHWDNLQJLQWRDFFRXQWWKHH[WHUQDOLQIOXHQFHVWKDWFDQEHH[SHFWHG DWWKHLQWHQGHGORFDWLRQ
F
VDIHDQGSURSHUSHUIRUPDQFHGXULQJQRUPDORSHUDWLRQDQGLQWKHHYHQWRIUHDVRQDEO\H[SHFWHG FRQGLWLRQVRIRYHUORDGDEQRUPDORSHUDWLRQDQGIDXOWZLWKRXWUHVXOWLQJLQGDPDJHWKDWZRXOG UHQGHUWKHHTXLSPHQWXQVDIH
G
SURWHFWLRQRISHUVRQQHOGXULQJXVHDQGPDLQWHQDQFHRIWKHHTXLSPHQW
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
2SHUDWLRQDOVDIHW\ LQVWDOODWLRQVVKDOOEH GHVLJQHG VRWKDW WKHHVFDSH DQGUHVFXH SDWKV DQGWKH HPHUJHQF\H[LWFDQ EHVDIHO\ XVHG LQWKH HYHQWRI D ILUHDQG WKDW SURWHFWLRQDQGHQYLURQPHQWDO FRPSDWLELOLW\DUHHQVXUHG :KHUH QHFHVVDU\ LQVWDOODWLRQV WKHPVHOYHV VKDOO EH SURWHFWHG DJDLQVW ILUH KD]DUG IORRGLQJ DQG FRQWDPLQDWLRQ ,I UHTXLUHG DGGLWLRQDO PHDVXUHV VKDOO EH WDNHQ WR SURWHFW LPSRUWDQW LQVWDOODWLRQV DJDLQVWWKHHIIHFWVRIURDGWUDIILFVDOWVSUD\YHKLFOHDFFLGHQW
5H 6$)(7<0($685(6 ,QVWDOODWLRQV VKDOO EH FRQVWUXFWHG LQ VXFK D ZD\ DV WR HQDEOH WKH RSHUDWLQJ DQG PDLQWHQDQFH SHUVRQQHO WR FLUFXODWH DQG LQWHUYHQH ZLWKLQ WKH IUDPHZRUN RI WKHLU GXWLHV DQG DXWKRUL]DWLRQV DFFRUGLQJWRFLUFXPVWDQFHVDWDQ\SRLQWRIWKHLQVWDOODWLRQ 6SHFLILFPDLQWHQDQFHZRUNSUHSDUDWLRQDQGUHSDLUZRUNZKLFKLQYROYHZRUNLQJLQWKHYLFLQLW\RIOLYH SDUWV RU DFWXDO ZRUN RQ OLYH SDUWV DUH FDUULHG RXW REVHUYLQJ WKH UXOHV SURFHGXUHV DQG ZRUN GLVWDQFHVDVGHILQHGLQQDWLRQDOVWDQGDUGVDQGUHJXODWLRQV
7UDQVIRUPHU +DQGERRN 3DJH
5H3URWHFWLRQDJDLQVWILUH 5H*HQHUDO
5HOHYDQWQDWLRQDOSURYLQFLDODQGORFDOILUHSURWHFWLRQUHJXODWLRQVVKDOOEHWDNHQLQWRDFFRXQWLQWKH GHVLJQRIWKHLQVWDOODWLRQ 127()LUHKD]DUGDQGILUHULVNRIHOHFWULFDOHTXLSPHQWLVVHSDUDWHGLQWRWZRFDWHJRULHVILUHYLFWLPDQGILUH RULJLQ3UHFDXWLRQVIRUHDFKFDWHJRU\VKRXOGEHWDNHQLQWRDFFRXQWLQWKHLQVWDOODWLRQUHTXLUHPHQWV D3UHFDXWLRQVWRILUHYLFWLP LVSDFHVHSDUDWLRQIURPRULJLQRIILUH LLIODPHSURSDJDWLRQSUHYHQWLRQ íJUDGLQJ íOLTXLGFRQWDLQPHQW íILUHEDUULHUVHJ5(,ILUHUHVLVWDQWPDWHULDOV íH[WLQJXLVKLQJV\VWHP E3UHFDXWLRQVWRILUHRULJLQ LHOHFWULFDOSURWHFWLRQ LLWKHUPDOSURWHFWLRQ LLLSUHVVXUHSURWHFWLRQ LYILUHUHVLVWDQWPDWHULDOV
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
5H7UDQVIRUPHUVUHDFWRUV
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
5H2XWGRRULQVWDOODWLRQV
7KHOD\RXWRIDQRXWGRRULQVWDOODWLRQVKDOOEHVXFKWKDWEXUQLQJRIDWUDQVIRUPHUZLWKDOLTXLGYROXPH RIPRUHWKDQOZLOOQRWFDXVHDILUHKD]DUGWRRWKHUWUDQVIRUPHUVRUREMHFWV)RUWKLVSXUSRVH DGHTXDWHFOHDUDQFHV*VKDOOQHFHVVDU\*XLGHYDOXHVDUHJLYHQLQWDEOH:KHUHWUDQVIRUPHUV ZLWKDOLTXLGYROXPHEHORZODUHLQVWDOOHGQHDUFRPEXVWLEOHZDOOVVSHFLDOILUHSUHFDXWLRQVPD\ EHQHFHVVDU\GHSHQGLQJRQWKHQDWXUHDQGWKHXVHRIWKHEXLOGLQJ
3DJH7UDQVIRUPHU+DQGERRN
,ILWLVQRWSRVVLEOHWRDOORZIRUDGHTXDWHFOHDUDQFHDVLQGLFDWHGLQWDEOHILUHUHVLVWDQWVHSDUDWLQJ ZDOOVZLWKWKHIROORZLQJGLPHQVLRQVVKDOOEHSURYLGHG D EHWZHHQWUDQVIRUPHUVVHHILJXUHVHSDUDWLQJZDOOV)RUH[DPSOH(,LQDFFRUGDQFHZLWK WKH2IILFLDO-RXUQDORIWKH(XURSHDQ&RPPXQLW\1R& − KHLJKWWRSRIWKHH[SDQVLRQFKDPEHULIDQ\RWKHUZLVHWKHWRSRIWKHWUDQVIRUPHUWDQN
−
OHQJWKZLGWKRUOHQJWKRIWKHVXPSLQWKHFDVHRIDGU\W\SHWUDQVIRUPHUWKHZLGWKRUOHQJWK RIWKHWUDQVIRUPHUGHSHQGLQJXSRQWKHGLUHFWLRQRIWKHWUDQVIRUPHU
E EHWZHHQWUDQVIRUPHUVDQGEXLOGLQJVVHHILJXUHVHSDUDWLQJZDOOV)RUH[DPSOH(,LI DGGLWLRQDOILUHVHSDUDWLQJZDOOLVQRWSURYLGHGILUHUDWLQJRIWKHEXLOGLQJZDOOVKRXOGEH LQFUHDVHGIRUH[DPSOH5(,LQDFFRUGDQFHZLWKWKH2IILFLDO-RXUQDORIWKH(XURSHDQ &RPPXQLW\& 5H,QGRRULQVWDOODWLRQVLQHOHFWULFDOSRZHUV\VWHPV
0LQLPXPUHTXLUHPHQWVIRUWKHLQVWDOODWLRQRILQGRRUWUDQVIRUPHUVDUHJLYHQLQWDEOH 7DEOH±*XLGHYDOXHVIRURXWGRRUWUDQVIRUPHUFOHDUDQFHV
7UDQVIRUPHUW\SH
2LOLQVXODWHG WUDQVIRUPHUV2
/LTXLGYROXPH / «« «« «
««
/HVVIODPPDEOH OLTXLGLQVXODWHG WUDQVIRUPHUV. ZLWKRXWHQKDQFHG SURWHFWLRQ /HVVIODPPDEOH OLTXLGLQVXODWHG WUDQVIRUPHUV.ZLWK HQKDQFHGSURWHFWLRQ
&OHDUDQFH*WR RWKHUWUDQVIRUPHUVRU FRPEXVWLEOHEXLOGLQJ QRQFRPEXVWLEOH VXUIDFH EXLOGLQJVXUIDFH P P
&OHDUDQFH*WREXLOGLQJVXUIDFHRUDGMDFHQWWUDQVIRUPHUV +RUL]RQWDO 9HUWLFDO P P )LUHEHKDYLRXUFODVV
'U\W\SH WUDQVIRUPHUV$ ) ) )
&OHDUDQFH*WREXLOGLQJVXUIDFH RUDGMDFHQWWUDQVIRUPHUV +RUL]RQWDO 9HUWLFDO P P 1RQH 1RQH
127((QKDQFHGSURWHFWLRQPHDQV ±WDQNUXSWXUHVWUHQJWK ±WDQNSUHVVXUHUHOLHI ±ORZFXUUHQWIDXOWSURWHFWLRQ ±KLJKFXUUHQWIDXOWSURWHFWLRQ )RUDQH[DPSOHRIHQKDQFHGSURWHFWLRQVHH)DFWRU\0XWXDO*OREDOVWDQGDUGRUHTXLYDOHQW
,IDXWRPDWLFDOO\DFWLYDWHGILUHH[WLQJXLVKLQJHTXLSPHQWLVLQVWDOOHGWKHFOHDUDQFH*FDQEHUHGXFHG
7UDQVIRUPHU +DQGERRN 3DJH
7DEOH±0LQLPXPUHTXLUHPHQWVIRUWKHLQVWDOODWLRQRILQGRRUWUDQVIRUPHUV 7UDQVIRUPHUW\SH 2LOLQVXODWHGWUDQVIRUPHUV 2
/LTXLGYROXPH O
! /HVVIODPPDEOHOLTXLG LQVXODWHGWUDQVIRUPHUV. ZLWKRXWHQKDQFHG SURWHFWLRQ
/HVVIODPPDEOHOLTXLG LQVXODWHGWUDQVIRUPHUV. ZLWKHQKDQFHGSURWHFWLRQ
6DIHJXDUGV (,UHVSHFWLYHO\5(, (,UHVSHFWLYHO\5(,RU(,UHVSHFWLYHO\5(, DQGDXWRPDWLFVSULQNOHUSURWHFWLRQ (,UHVSHFWLYHO\5(,RUDXWRPDWLFVSULQNOHU SURWHFWLRQ
09$DQG
8 P N9
(,UHVSHFWLYHO\5(,RUVHSDUDWLRQGLVWDQFHVP KRUL]RQWDOO\DQGPYHUWLFDOO\
)LUHEHKDYLRXUFODVV 'U\W\SHWUDQVIRUPHU$
)
))
(,UHVSHFWLYHO\5(,RUVHSDUDWLRQGLVWDQFHVP KRUL]RQWDOO\DQGPYHUWLFDOO\ 1RQFRPEXVWLEOHZDOOV
127(5(,UHSUHVHQWVEHDULQJV\VWHPZDOOZKHUHDV(,UHSUHVHQWVQRQORDGEHDULQJV\VWHPZDOOZKHUH5LV WKHORDGEHDULQJFDSDFLW\(LVWKHILUHLQWHJULW\,LVWKHWKHUPDOLQVXODWLRQDQGUHIHUVWRWLPHLQPLQXWHV 127((QKDQFHGSURWHFWLRQPHDQV ±WDQNUXSWXUHVWUHQJWK ±WDQNSUHVVXUHUHOLHI ±ORZFXUUHQWIDXOWSURWHFWLRQ ±KLJKFXUUHQWIDXOWSURWHFWLRQ )RUDQH[DPSOHRIHQKDQFHGSURWHFWLRQVHH)DFWRU\0XWXDO*OREDOVWDQGDUGRUHTXLYDOHQW
'RRUVVKDOOKDYHDILUHUHVLVWDQFHRIDWOHDVWPLQ'RRUVZKLFKRSHQWRWKHRXWVLGHDUHDGHTXDWH LI WKH\ DUH RI ILUHUHWDUGDQW PDWHULDO DQG FRQVWUXFWLRQ 9HQWLODWLRQ RSHQLQJV QHFHVVDU\ IRU WKH RSHUDWLRQRIWKHWUDQVIRUPHUVDUHSHUPLWWHG:KHQGHVLJQLQJWKHRSHQLQJVWKHSRVVLEOHHVFDSHRI KRWJDVHVVKDOOEHFRQVLGHUHG
)LJXUH±6HSDUDWLQJZDOOVEHWZHHQWUDQVIRUPHUV D
7KHZDOOLQWKLVDUHDVKDOOEHGHVLJQHGWRDYRLGVSUHDGRIILUH 3DJH7UDQVIRUPHU+DQGERRN
D
7KHZDOOLQWKLVDUHDVKDOOEHGHVLJQHGWRDYRLGVSUHDGRIILUH
)LJXUH)LUHSURWHFWLRQEHWZHHQWUDQVIRUPHUDQGEXLOGLQJ
127(,QDGGLWLRQWKHZDWHUIURPWKHILUHH[WLQJXLVKLQJLIDQ\VKRXOGEHFRQVLGHUHG D
&RQWDLQPHQWWKHHQWLUHTXDQWLW\RIIOXLGRIWKHWUDQVIRUPHUSOXVUDLQZDWHU
)LJXUH±6XPSZLWKLQWHJUDWHGFDWFKPHQWWDQN 7UDQVIRUPHU +DQGERRN 3DJH
D
&RQWDLQPHQWPLQLPXPRIWKHIOXLGIURPWKHWUDQVIRUPHU
)LJXUH±6XPSZLWKVHSDUDWHGFDWFKPHQWWDQN
127(,QDGGLWLRQWKHZDWHUIURPILUHHVWLQJXLVKLQJLQVWDOODWLRQLIDQ\VKRXOGEHFRQVLGHUHG D
&RQWDLQPHQWRXWGRRUWKHHQWLUHTXDQWLW\RIIOXLGRIWKHODUJHVWWUDQVIRUPHUSOXVUDLQ
&RQWDLQPHQWLQGRRUWKHHQWLUHTXDQWLW\RIIOXLGRIWKHODUJHVWWUDQVIRUPHU
)LJXUH±6XPSZLWKLQWHJUDWHGFRPPRQFDWFKPHQWWDQN
127(7KHGRWWHGDUHDGHQRWHVWKHYROXPHRIWKHHQWLUHTXDQWLW\RILQVXODWLQJIOXLGRIWKH WUDQVIRUPHUVSLOOHGRQWKHIORRU
)LJXUH ±([DPSOHIRUVPDOOWUDQVIRUPHUZLWKRXWJUDYHOOD\HUDQGFDWFKPHQWWDQN
3DJH7UDQVIRUPHU+DQGERRN
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
5H($57+,1*6<67(06 5H*HQHUDO 7KLV FODXVH SURYLGHV WKHFULWHULDIRU GHVLJQ LQVWDOODWLRQ WHVWLQJ DQGPDLQWHQDQFH RI DQ HDUWKLQJ V\VWHPVXFKWKDWLWRSHUDWHVXQGHUDOOFRQGLWLRQVDQGHQVXUHVWKHVDIHW\RIKXPDQOLIHLQDQ\SODFH WRZKLFKSHUVRQVKDYHOHJLWLPDWHDFFHVV,WDOVRSURYLGHVWKHFULWHULDWRHQVXUHWKDWWKHLQWHJULW\RI HTXLSPHQWFRQQHFWHGDQGLQSUR[LPLW\WRWKHHDUWKLQJV\VWHPLVPDLQWDLQHG 5H)XQGDPHQWDOUHTXLUHPHQWV 5H6DIHW\FULWHULD
7KHKD]DUG WR KXPDQ EHLQJVLV WKDW D FXUUHQW ZLOO IORZ WKURXJKWKH UHJLRQ RIWKH KHDUW ZKLFKLV VXIILFLHQWWRFDXVHYHQWULFXODUILEULOODWLRQ7KHFXUUHQWOLPLWIRUSRZHUIUHTXHQF\SXUSRVHVVKRXOGEH GHULYHGIURP,(&FXUYH&)RUVXEVWDWLRQGHVLJQWKLVFXUYHQHHGVWREHWUDQVODWHGLQWR YROWDJHOLPLWVIRUFRPSDULVRQZLWKWKHFDOFXODWHGVWHSDQGWRXFKYROWDJHVWDNLQJLQWRDFFRXQWWKH LPSHGDQFHSUHVHQWLQWKHERG\FXUUHQWSDWK$QQH[%VKRZVFXUYHVRIW\SLFDOYROWDJHOLPLWV7KH YROWDJHOLPLWVVKDOOWDNHLQWRDFFRXQWWKHIROORZLQJIDFWRUV ± ± ± ± ±
SURSRUWLRQRIFXUUHQWI ORZLQJWKURXJKWKHUH JLRQRIWKHKHDUW ERG\LPSHGDQFHDORQJW KHFXUUHQWSDWK EDVHGRQWKHYDOXHVRIWDEOHRI,(& UHVLVWDQFHEHWZHHQWKHERG \FRQWDFWSRLQWVDQGUHWXUQSDW KV HJUHPRWHHDUWKHDUWKHOHFWURGH IDXOWGXUDWLRQ IDXOWFXUUHQWPDJQLWXGH
,W PXVW DOVR EH UHFRJQL]HG WKDW IDXOW RFFXUUHQFH IDXOW FXUUHQW PDJQLWXGH IDXOW GXUDWLRQ DQG SUHVHQFHRIKXPDQEHLQJVDUHSUREDELOLVWLFLQQDWXUH
7UDQVIRUPHU +DQGERRN 3DJH
5H$QQH[$ QRUPDWLYH 9DOXHV RI UDWHG LQVXODWLRQ OHYHOV DQG PLQLPXP FOHDUDQFHV EDVHG RQ FXUUHQWSUDFWLFHLQVRPHFRXQWULHV 7DEOH$±9DOXHVRIUDWHGLQVXODWLRQOHYHOVDQGPLQLPXPFOHDUDQFHVLQDLUIRU N98 P N9IRUKLJKHVWYROWDJHVIRUHTXLSPHQW8 PQRWVWDQGDUGL]HG E\WKH,(&EDVHGRQFXUUHQWSUDFWLFHLQVRPHFRXQWULHV
9ROWDJH UDQJH
1RPLQDO YROWDJH RI V\VWHP
+LJKHVW YROWDJHIRU HTXLSPHQW
8 Q
UPV N9
8 P UPV N9
N9
5DWHGOLJKWQLQJ LPSXOVH ZLWKVWDQG D YROWDJH
UPV
,
5DWHGVKRUW GXUDWLRQSRZHU IUHTXHQF\ ZLWKVWDQG YROWDJH
0LQLPXPSKDVHWRHDUWKDQG E SKDVHWRSKDVHFOHDUDQFH1
V SHDNYDOXH N9
,QGRRU LQVWDOODWLRQV PP
2XWGRRU LQVWDOODWLRQV PP
D
7KHUDWHGOLJKWQLQJLPSXOVHLVDSSOLFDEOHSKDVHWRSKDVHDQGSKDVHWRHDUWK
E
)RU URGVWUXFWXUH
&RS\ULJKW,(&*HQHYD6ZLW]HUODQGZZZLHFFK
3DJH7UDQVIRUPHU+DQGERRN