!'-!&,7&"( /CTOBER $*0$)/:)%+*5$3+,&02'8/(9(5 5(9,6,215(&25' 5(9,6,21 5(9,6,21'$7( 9(5 $='LVSOD\V 3$*( &217(176 ),5679(56,21 $*0$)/:)%+*5$3+,&02'8/(9(5 Ć&217(176 0(&+$1,&$/',$*5$0 0(&+$1,&$/63(&6 $%62/87(0$;,0805$7,1*6 (/(&75,&$/&+$5$&7(5,67,&6 237,&$/&+$5$&7(5,67,&6 %/2&.',$*5$0 3,1$66,*10(17 32:(56833/< 7,0,1*&+$5$&7(5,67,&6 5(/,$%,/,7<7(67 ',63/$<&21752/,16758&7,21 35(&$87,21)2586,1*/&0 $='LVSOD\V AZ Displays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q q q % q q q & $ q q q $='LVSOD\V $*0$)/:)%+*5$3+,&02'8/(9(5 6 % " " " & 1RWH 55HIOHFWLYH 67UDQVIOHFWLYH $671*UD\ %671<HOORZ &)671 $W " " " " ,WHP 6\PERO &RQGLWLRQ 0LQ 7\S 0D[ 8QLW 5HVSRQVHWLPHULVH 7U & PV 5HVSRQVHWLPHIDOO 7I & PV %/2&.',$*5$0 127( %,$65(6,67256(75 5 5 5 .5 5(6:,7+5 .38//83 5 0 $='LVSOD\V $*0$)/:)%+*5$3+,&02'8/(9(5 3,1$66,*10(17 3LQ1R 6\PERO )XQFWLRQ 966 *URXQG 9'' 3RZHU6XSSO\)RU/RJLF&LUFXLW9 9 3RZHU6XSSO\)RU/&''ULYLQJ 56 ,QVWUXFWLRQ'DWD6OHFW 5: 5HDG:ULWH6OHFW ( (QDEOHIRU,& ( (QDEOHIRU,& 1& 1R&RQQHFW '% 'DWDELW '% 'DWDELW '% 'DWDELW '% 'DWDELW '% 'DWDELW '% 'DWDELW '% 'DWDELW '% 'DWDELW /(' 3RZHU6XSSO\)RU%DFNOLJKW&LUFXLW9 /(' *URXQG 32:(56833/< $='LVSOD\V $*0$)/:)%+*5$3+,&02'8/(9(5 7,0,1*&+$5$&7(5,67,&6 6\PERO 7HVW &RQGLWLRQ 0LQ 7\S 0D[ 8QLW 6\VWHPF\FOHWLPH ,WHP W&<& )LJD)LJE QV $GGUHVVVHWXSWLPH W$: )LJD)LJE QV $GGUHVVKROGWLPH W$+ )LJD)LJE QV 'DWDKROGWLPH W'+ )LJD QV 'DWDVHWXSWLPH W'6 )LJD QV QV 2XWSXWGLVDEOHWLPH W2+ $FFHVVWLPH W$&& 5HDG (QDEOH SXOVHZLGWK :ULWH 5LVHDQGIDOOWLPH )LJD)LJE QV &/ S) 7(: 7U7I W &<& ( W $: W (: WU WI 9 ,+ 5 : 9 ,+ 9 ,/ 9 ,/ W+ W $+ $ & 6 9 ,+ 9 ,+ 9 ,/ 9 ,/ W W $&& ' % a' % W 2+ 9 ,+ 9 ,+ 9 ,/ 9 ,/ 9 DOLG' DWD )LJD,QWHUIDFHWLPLQJGDWD5HDG W &<& ( W $: WU W (: W '6 WI 9 ,+ 5 : 9 ,+ 9 ,/ 9 ,/ W $+ $ & 6 9 ,+ 9 ,+ 9 ,/ 9 ,/ W '+ ' %a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a 7XUQVGLVSOD\RQRURII 2))21 6HWV GLVSOD\ 5$0 3DJH LQ 3DJHDGGUHVVUHJLVWHU 6HWV GLVSOD\ 5$0 FROXPQ DGGUHVV LQ FROXPQ DGGUHVV UHJLVWHU &ROXPQDGGUHVVa '(6&5,37,21 ' L V S O D \ V W D U W O L Q H a ,QGLFDWHVWKHGLVSOD\GDWD 5$0GLVSOD\HGDWWKHWRSRI WKHVFUHHQ 5HDGVWKHIROORZLQJVWDWXV %86<5HDG\ %XV\ 5(6(7 212)) $'& %86< 6WDWXV5HDG $'& &:RXWSXW &&:RXWSXW 212))'LVSOD\RQ 'LVSOD\RII 5(6(71RUPDO %HLQJ5HVHW :ULWH'LVSOD\'DWD :ULWH'DWD :ULWHVGDWD'%a'%IURP EXVLQWRGLVSOD\GDWD5$0 5HDG'LVSOD\'DWD 5H D G ' D W D 5HDGVGDWD'%a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e& fe& 6ROGHULQJWLPHWRVHF 8VHHXWHFWLFVROGHUZLWKUHVLQIOX[ILOO ,IIOX[LVXVHGWKH/&'VXUIDFHVKRXOGEHFRYHUHGWRDYRLGIOX[VSDWWHUV)OX[UHVLGXHVKRXOGEHUHPRYHG DIWHUZDUGV J 2WKHUV 7KHODPLQDWRUSURWHFWLYHILOPLVDWWDFKHGRQWKHVXUIDFHRI/&'SDQHOWRSUHYHQWLWIURPVFUDWFKHVRUVWDLQV,W VKRXOGEHSHHOHGRIIVORZO\XVLQJVWDWLFHOLPLQDWRU 6WDWLFHOLPLQDWRUVKRXOGDOVREHLQVWDOOHGWRWKHZRUNEHQFKWRSUHYHQW/&'PRGXOHIURPVWDWLFFKDUJH 2SHUDWLRQ D 'ULYLQJYROWDJHVKRXOGEHNHSWZLWKLQVSHFLILHGUDQJHH[FHVVYROWDJHVKRUWHQVGLVSOD\OLIH E 5HVSRQVHWLPHLQFUHDVHVZLWKGHFUHDVHLQWHPSHUDWXUH F 'LVSOD\PD\WXUQEODFNRUGDUNEOXHDWWHPSHUDWXUHVDERYHLWVRSHUDWLRQDOUDQJHWKLVLVKRZHYHUQRW SUHVVLQJRQWKHYLHZLQJDUHDPD\FDXVHWKHVHJPHQWVWRDSSHDU³IUDFWXUHG´ G 0HFKDQLFDOGLVWXUEDQFHGXULQJRSHUDWLRQVXFKDVSUHVVLQJRQWKHYLHZLQJDUHDPD\FDXVHWKH VHJPHQWVWRDSSHDU³IUDFWXUHG´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