... <SULQWI?Q`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«,54,54,54«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±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`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«,54,54,54«,54,54KDVWKHKLJKHVWSULRULW\,54KDVWKHORZHVW7KHIDFWWKDWWKHUHDUHRQO\DIHZ,54OLQHVDYDLODEOHKDVOHDGWR,54FRQIOLFWV,54VKDULQJDVZHOODVVZLWFKHVRQFDUGVZKLFK1HVWHG,QWHUUXSWV0RVWFRPSXWHUVSULRULWL]HLQWHUUXSWVDQGWKHQDOORZKLJKHUSULRULW\LQWHUUXSWVWRLQWHUUXSWWKRVHRIORZHUSULRULW\7KLVNLQGRISROLF\LVFDOOHGDQHVWHGLQWHUUXSWSROLF\,PSOHPHQWLQJDQHVWHGLQWHUUXSWSROLF\RQDQ[UHTXLUHVWKDWERWKWKHLQWHUUXSWFRQWUROOHUDQGWKHSURJUDPPHUEHJLYHQPRUHUHVSRQVLELOLW\2QWKH[WKHSURJUDPPHUKDVFRQWURORYHUWKHLQWHUUXSWHQDEOHIODJ7KH67,FRPPDQGVHWVWKHLQWHUUXSWHQDEOHIODJ7KH&/,FRPPDQGFOHDUVLW%\LQFOXGLQJDQ67,FRPPDQGDWWKHEHJLQQLQJRIDQ,65WKHSURJUDPPHUFDQRYHUULGHWKHGHIDXOWRQHDWDWLPHSROLF\DQGPDNHDQ,65LQWHUUXSWLEOH,QWHUUXSWVFDQQRWEHQHVWHGLIWKH\H[HFXWHZLWKWKHLQWHUUXSWHQDEOHIODJFOHDUHG7KHUHLVDOVRPRUHZRUNIRUWKHLQWHUUXSWFRQWUROOHU,IWKH[H[HFXWHV,65VZLWKWKHLQWHUUXSWHQDEOHIODJVHWWKHQWKHLQWHUUXSWFRQWUROOHUKDVWRDVVXPHUHVSRQVLELOLW\IRUHQIRUFLQJWKHSULRULW\V\VWHP6LQFHWKHSURFHVVRUKDVLWVJXDUGGRZQWKHLQWHUUXSWFRQWUROOHUPXVWQRWOHWHYHU\LQFRPLQJLQWHUUXSWSDVVWKURXJK2WKHUZLVHDVQRWHGDERYHWKH,65VFRXOGSOD\SLQJSRQJZLWKWKHSURFHVVRU,QSDUWLFXODUWKHFRQWUROOHULVUHVSRQVLEOHIRUQRWLQWHUUXSWLQJDQLQWHUUXSWXQOHVVWKH,65EHLQJLQWHUUXSWHGKDVDORZHUSULRULW\WKDQWKHRQHLWLVDOORZLQJWKURXJK,IWKH,65H[HFXWLQJKDVHTXDORUKLJKHUSULRULW\WKHQWKHSHQGLQJLQWHUUXSWPXVWZDLWXQWLOWKH,65LVILQLVKHG%XWLQRUGHUIRUWKHFRQWUROOHUWRKROGRIIWKHSHQGLQJLQWHUUXSWXQWLOWKHQLWQHHGVWRNQRZZKHQWKH,65JHWVGRQH,WQHHGVDVLJQDO:LWKRXWDVLJQDOLWKDVQRZD\RINQRZLQJ,ILWGRHVQWNQRZZKHWKHUDKLJKSULRULW\,65LVILQLVKHGH[HFXWLQJWKHQLWFDQQRWGHFLGHZKHWKHULWLVRND\WRLQWHUUXSWWKH&38ZLWKDORZSULRULW\LQWHUUXSWRUQRW6LQFHWKHLQWHUUXSWFRQWUROOHUKDVLWVRZQUHDGF\FOHRQHPLJKWH[SHFWDZULWHF\FOHIRUWKLVSXUSRVH7KH(2,&RPPDQG6LQFHWKH[GRHVQRWKDYHDQ,2FRQWUROOHUZULWHF\FOHLWIDOOVWRWKHORWRIWKHSURJUDPPHUWRLQFOXGHDQ$OO'RQHPHVVDJHWRWKHLQWHUUXSWFRQWUROOHUDWWKHHQGRIHDFK,657KLVPHVVDJHLVFDOOHGDQ(2,RUHQGRILQWHUUXSWFRPPDQG6RWKDWWKHLQWHUUXSWFRQWUROOHUFDQUHFHLYHFRPPXQLFDWLRQVIURPWKHSURFHVVRULWKDVDQ,2DGGUHVV7KHSURJUDPPHUFDQWKHQXVHDQ287FRPPDQGWRLVVXHWKH(2,7KH,2DGGUHVVLVDOVRXVHGZKHQWKHLQWHUUXSWFRQWUROOHUJHWVSURJUDPPHG$VQRWHGDERYHLWQHHGVWREHSURJUDPPHGVRWKDWLWNQRZVZKDWLQWHUUXSWQXPEHUVWRUHSRUW$VDGHYLFHZLWKDQ,2DGGUHVVWKHLQWHUUXSWFRQWUROOHUORRNVOLNHMXVWDQ\RWKHU,2GHYLFH%XWLWLVVSHFLDOLQWKDWLWLVWKHRQO\,2GHYLFHWKDWFDQVLJQDOWKHSURFHVVRUGLUHFWO\$OOWKHRWKHUVPXVWJRWKURXJKWKHLQWHUUXSWFRQWUROOHU7KH 10, DQG5(6(7,QWHUUXSWV%HVLGHVWKHJHQHUDOSXUSRVHLQWHUUXSWSLQRQWKH[WKHUHDUHWZRRWKHULQWHUUXSWSLQV7KH\DUHWKH 10, DQG5(6(7SLQV$VLJQDORQWKH 10, RUQRQPDVNDEOHLQWHUUXSWSLQLVQRWEORFNHGE\FOHDULQJWKHLQWHUUXSWHQDEOHIODJ,WGRHVQRWWULJJHUDQLQWHUUXSWDFNQRZOHGJHEXVF\FOH,WLVVHUYLFHGE\LQWHUUXSWVHUYLFHURXWLQHQXPEHU,WLVXVHGWRVLJQDOSDULW\HUURUVLQPHPRU\RUSRZHUVXSSO\SUREOHPV7KH5(6(7SLQLVLQWHQGHGIRUXVHLQVLWXDWLRQVZKHUHWKHUHPD\EHQRLQWHUUXSWGHVFULSWRUWDEOHLQPHPRU\)RUH[DPSOHZKHQWKHFRPSXWHULVEHLQJWXUQHGRQ&RQVHTXHQWO\WKHUHLVQRSRLQWLQVWRULQJDQDGGUHVVIRULWLQWKHLQWHUUXSWWDEOH,QVWHDGWKHDGGUHVVLVEXLOWLQWRWKHSURFHVVRU7KDWDGGUHVVLV)))))))+RU))))+RQWKH,WLVHDVLO\UHPHPEHUHGDV±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