The Livestock Database for Lenders and Borrowers

Glossary

Age Verification Livestock producers may be able to obtain premiums (or avoid discounts) when they sell their animals if they can provide a date of birth or age data for each individual animal. The bitsid System allows clients to enter and store the date of birth information and retrieve it when needed. Date of Birth is an Optional Field in the bitsid Database.

Animal ID System Any system of individual animal identification currently being used by a livestock owner. The system must be able to accurately differentiate between animals.

Audit A lender may request an audit of animals assigned to the bank’s loans. The process is initiated on the menu page of the bitsid System.

BANGS Tag This tag is used by veterinarians in certain US states to confirm inoculation for brucellosis. BANGS tags are unique and contain a state identifier. BANGS tags provide a visual animal identification method which qualifies for the Bronze Level of service in the bitsid System.

bits Client Files (BCF) After a Data Collection Session is completed and the File Completion program has been run, the result will be one or more bits Client Files. A bits Client File will be ready to transfer to the bitsid Database by selecting “Upload Collateral” from the menu on the bitsid website: www.bitsid.com.

bits Client Software (BCS) To enroll animals in either the Silver or Bronze level of security, registered Clients first need to download a small software program (bits Client Software) from the bitsid System. Since each bits client may use different hardware to capture the data for their animal ID system, bits Ltd LLC has created special software that can be download from www.bitsid.com. The software is used to create consistently formatted records. Using a consistent format allows the bitsid System to provide a secure and accurate record of ownership. This software is provided to registered clients of bits Ltd, LLC at no charge. Clients may download the software by selecting “Client Software Download” from the bitsid System log-in screen. Clients enrolling animals in the Gold level of service will use software provided by Optibrand for this function.

bitsid.com This is the website of bits Ltd, LLC, and the bitsid System. The web site allows livestock owners, lenders and service providers to register, upload collateral data, receive notices and reports, manage cattle data records and establish loans to which collateral may be assigned or pledged. If there is a need to contact bits Ltd, LLC with specific questions, use the “Contact bits” feature on the “Home Page” of bitsid.com.

bitsid Database The secure file of all records of registered owners, lenders and service providers, as well as the enrollment records of each individual animal.

bits Identification Number (BIN) The BIN is an internal control number assigned to each animal as it is entered in the bitsid System. Since it is always more specific than a generic description of the animal the BIN can be used by a bank to file a UCC record. The BIN is more secure and unique in each successive level of bits service (Bronze to Silver to Gold).

bitsid System The bitsid System is the database and background programs created and maintained by bits Ltd, LLC for the purpose of assisting lenders and producers in reducing risk in livestock lending transactions using secure individual animal identities. The database receives individual animal records from the owner/producer. The records are retained on the database for comparison to future animals being enrolled and may also provide specific animal country of origin labeling (COOL) and/or animal age verification if the date of birth is entered by an owner. Depending on the level of identification security required, the system can store and compare records using methods of identification ranging from a simple dangle ear tag to a totally unique Retinal Image.

Bluetooth Bluetooth is a wireless communication protocol. Clients may use “Bluetooth” technology to send data from various collection devices such as an RFID wand or a Digital Camera to their laptop. Using Bluetooth technology is an option that may require additional equipment but allows the clients to operate without cumbersome USB or Serial Port wires between devices. If a client wishes to operate wireless, they may simply contact their computer supply vendor, who can provide detailed costs and equipment information,

Browse The process of viewing the files or records currently on the user’s computer in order to select an appropriate file to upload for enrollment in the bitsid System database.

Client Livestock owners who have enrolled their livestock in the bitsid Database are the clients of bits Ltd., LLC.

Collateral Livestock with a sufficient value that assures lenders their unpaid loan balance will be adequately covered by the sale of the pledged livestock in the event the borrower defaults on the loan.

Data Collection Profiles (as found in BCS) Clients of bits Ltd. have the ability to customize their data collection system for efficiency using the bits Client Software. Configuration of a Data Collection Profile allows clients to select the data elements they wish to collect and also determine the sequence of collection during the processing of their livestock. For example: A client can determine whether or not an optional data element such as “breed” will be entered once for all animals being processed during the session, or will be entered each time an individual animal is being processed, or will not be entered at all. Clients also decide how to best match the data collection sequence to their own processing procedures and personal preferences. Different Data Collection Profiles can be created, deleted, modified and saved to reflect differences in the livestock processing operations. Clients could create one Data Collection Profile for weaning, another for branding and still others for Pregnancy Checking or feedlot entry processing. Other clients may decide that one Data Collection Profile will serve all of their processing procedures.

Data Collection Session (as found in BCS) The first step in the process is to select an existing Data Collection Profile. Data that will be consistent among the animals being processed during the session need not be entered for each animal. Simply set the Data Collection Profile to automatically insert a consistent data element into each record. The laptop computer screen will display the first data element from the selected Profile. Often times the first data element will be the Ear Tag Number, so the computer screen will display “Key in the Ear Tag Number.” After entering the Ear Tag Number from the keyboard, and pressing “Enter”, the next data element to be collected will display on the screen. The computer will continue to display the next data field until all of the data is entered. Once all data elements have been collected for an individual animal the operator will select “Save Record”. The computer will start a new record by asking you to “Key in the Ear Tag Number” for the next animal. When all animals have been processed, the operator will select “Save File” and will be prompted to enter a name for the file. Once the file is named, the program will close the session. However an operator can “resume a session” when they wish to collect and add more data records to a previous file.

Designating a Service Provider An owner may designate another person or group to collect data and/or to manage the data for the owner’s enrolled animals. If an owner wishes to have another party collect and/or manage the data in the database, the owner should designate such other person to act on their behalf by selecting and completing the menu item “Designate Service Provider” from the menu on the bitsid System. A designating owner will need the registered Service Provider’s Username to complete the designation. An owner designating a service provider, can control the service provider’s access to the collateral records. If the owner wishes the service provider to manage collateral records, then the service provider will need to pay for the enrollments (using either his credit card or the designating owner’s credit card). If the service provider does not pay for the enrollments, then the service provider can only upload files to the database. In order to complete the enrollment and assign collateral to a loan, the owner would need to log onto the bitsid System and pay for the enrollment. The owner would then manage the collateral records on the database.

Duplicate Records When the identification data in an animal record (ear tag number, owner ID, BIN) matches another animal record the bitsid system will determine this to be a duplicate record. The bitsid System does not permit livestock owners to enroll duplicate records into its database as this will overstate assets of the owner. Overstating assets pledged to a loan puts a lender at greater risk. The bitsid System tests for duplicate records at several points during processing. Clients will be informed if a duplicate record has been detected in their files.

Editing Data Fields (as found in BCS) During the Data Collection Session using the “back” selection on the screen allows the operator to correct certain fields of the record he is currently processing. Once the “Save record” instruction has been selected the “back” selection will not access the previous record and further editing must be done in the “File Completion” program. Editing the Data Collection File using the “File Completion” program must be completed before the file is uploaded to the bitsid Database. RFID data, Digital Photos, and GPS/Time/Date data cannot be edited.

Edit Profile A client may select “Edit Profile” from the bitsid System menu in order to change any of their specific registration detail. To reach the “Edit Profile” feature, the client must be registered and log on to the bitsid System using their Username and Password. If a user forgets the password, they can direct the bitsid System to generate a new temporary password, and it will be e-mailed to the previously registered e-mail address. It is recommended that the user return to the “Edit Profile” page to reset the temporary password to a new secure password of their choice.

Enrollment The process of putting each individual animal ID record into the bitsid Database after it has been uploaded and validated. Once the individual animal ID record is enrolled, a bits Identification Number (BIN) is created. The BIN provides lenders with improved security on their collateral and can provide the producers a method to participate in source and age verification. Enrollment is activated through the “Upload Collateral” selections on the bitsid System.

Field A field is a data element in a record. There are Mandatory Fields that must have appropriate data in them before the record is considered valid for enrollment. For example, in the Bronze level service, the visual identification number (ear tag number) is a Mandatory Field. There are also Optional Fields. An example of an Optional Field is the month/day/year of birth. This field in an animal’s record could be used to help facilitate age verification.

File A set of one or more animal ID records residing on the client’s computer. Files are created from the BCS “Data Collection Session”, and become bits Client Files (BCF) by running the “File Completion Program.” BCF’s are uploaded to the bitsid Database to enroll all of the individual animal records in the file. The upload of BCF’s occurs when the client runs “Upload Collateral” after logging on to www.bitsid.com.

File Completion Program (as found in BCS) Once a Data Collection Session has been closed the client can prepare the file for File Transfer to bitsid.com through a bits Client Software selection of “File Completion.” In the File Completion program the client is able to view and edit some of the data in each individual animal’s record. The laptop computer must be connected to the internet to run “File Completion.” The program will validate the client username in the file from the Data Collection Session and will prompt the operator to enter the correct username if the validation is unsuccessful. If the Data Collection Session included multiple clients, the “File Completion Program” will validate all of the client usernames and will then separate the data into BCF (bits Client Files) for each individual owner/client. When “File Completion” is finished, the BCF’s will be ready for the “Upload Collateral” process that is run from bitsid Website.

File Transfer Using the internet, your file of individual animal ID records is sent or uploaded to the bitsid System Database. This takes place in the “Upload Collateral” selections in the bitsid System.

GPS These letters signify Global Positioning System. GPS signals are captured by various technologies being used to build the animal ID records that are ultimately enrolled in the bitsid System database. The GPS signal provides a secure and accurate location called “coordinates” that indicate where the animal ID capture took place. The coordinates of Latitude and Longitude will appear on several reports for Clients and Lenders, but can only be modified by uploading a new record for enrollment. GPS coordinates cannot be edited by the users in the bitsid System.

Group Manager When more than one registered owner has a mutual equity interest in livestock, a group ownership condition results. When a Group is created using the “Manage Group” menu selection, the owner that creates the group and designates other owners to be included in (or excluded from) the group, becomes the Group Manager with responsibility to maintain the ownership list of the Group.

Livestock Owner (Client) The person or entity that holds the equity title to the animal. An owner needs to be registered on the bitsid System in order to upload animal records. An owner (or an owner’s designated service provider) instructs the bitsid System to whom an animal is assigned as loan collateral, and manages the animal on the bitsid System. The owner updates data in the system if an animal has died, been sold, is missing or has been pledged or unpledged for a loan. An owner can also create an ownership group, or add additional owners to an existing ownership group. There is no charge if an owner is added to an animal record. However, if ownership changes from a single or group owner to another single owner or owners group, then the bitsid System will treat the animal identification record as a new enrollment in the system.

Loan / Loan Name In order to “Create a Loan”, you will need to assign the loan a distinctive (March 10, 2005; Operating Loan; Feeder Purchase for 07; etc.) name that will clearly identify the loan for you and your lender. You will also need your lender’s bitsid System Username to “Create a Loan.” You will be assigning livestock collateral to the loans you create in the bitsid System. This does not create the lending transaction between a client and a lender.

Manage Collateral As an owner, group manager or authorized service provider you can manage the collateral that you have assigned to your loan or loans. In order to manage collateral, you will need to log on to the bitsid System and select the “Manage Collateral” option on the menu. Once you have selected which loan you want to manage, you may select any, some, or all of the animals pledged to that loan, and mark them as: Sold, Deceased, Missing, Pledged or Unpledged. Your lender will be notified of the status changes you make.

Missing Status An owner who is unable to locate an animal, should change the bitsid System Database record to show the animal’s status as “Missing”. This would also be an appropriate status for an animal suspected of having been stolen. If an animal’s status has been changed to “missing” and the animal is subsequently found or recovered, the status may not be changed back to “Active”, but the animal may be re-enrolled in the bitsid System Database.

Multiple Ownership Individual animal records are compared against the entire bits System Database when they are enrolled. If the comparison identifies another record of the same animal, then the animal is defined as having a “Multiple Ownership” situation. All owners and lenders are notified that such a situation exists. If the animal is truly owned by more than one person and/or company the bitsid System will allow the animal to be enrolled as owned by an “Owner Group”.

Operating System The laptop computer that a bits Client will use in the Data Collection Session has basic software that came with the computer allowing it to run various other programs. The bits Client Software (BCS) will be installed on the client’s laptop computer and can be operational only when the Operating System is compatible. bits Client Software can be operated from any of the following Windows Operating Systems; Windows 2000, XP, or Vista.

Optibrand This company, located in Fort Collins, Colorado has patented a retinal imaging system for livestock that provides the highest level of security (Gold) for bits clients and lenders. If you wish to learn more about Optibrand, their technology and how it may work for you please go to their website: www.optibrand.com.

Optional Data Fields Data elements that are not required in the bitsid System, but are pre-defined by the bitsid System, are known as Optional Fields. An example is “Date of Birth.” Owners are not required to enter a date of birth for their livestock, though this may be an advantage that enables the owner to obtain premiums for age verification when the animals are sold. Other Optional Data Fields include: Organic, Natural, Tag Color, Species, Breed, Gender, and Animal Color.

Owner Group A list of two or more owners who have registered as a group on the bitsid System. The group holds title to an animal or group of animals. The bitsid System does not have any extra charge if an animal has multiple owners. The group creator (or service provider) uploading the record of an animal has management access to the animal records owned by the group.

Password Each enrolled user on the bitsid System has an individual and non-public password they selected during registration. The password should have both alpha and numeric characters, contain both upper and lower case letters, and cannot be a word found in the dictionary. You will need the password in addition to your Username to log onto the bitsid System. If you forget or have lost your password, you may indicate on the “Sign In” screen that you have lost your password and the bitsid System will e-mail you a new temporary password giving you access to the bitsid System. Once you are logged onto the bitsid System, you can change your password using the “Edit Profile” screen accessed from the main menu.

Payment Procedures bits Ltd, LLC charges livestock owners to enroll their collateral on the bitsid System Database. The amount of the charge is dependent upon the level of security provided by your selected animal identification process. The current levels of security are defined as:

1. Bronze Level: A Visual Tag Number, a Digital Image of the Animal’s Head, GPS coordinates , a Time and Date Stamp

2. Silver level: A unique RFID/EID Number, a Digital Image of the Animal’s Head, GPS coordinates , a Time and Date Stamp

3. Gold Level: Two Retinal Images (one from each eye), GPS coordinates, a Time and Date Stamp

The bitsid System will determine the level of security based on the type of records being uploaded, and will calculate the enrollment fees accordingly.

Pledged/Unpledged Livestock Animals entered on the bitsid System can either be assigned (Pledged) as collateral on a loan, on not assigned (Unpledged) as collateral. If an animal or group of animals are assigned to a loan as collateral, the designated lender on the loan will be notified that he has a report available showing the assignment. If animals are removed as collateral from a loan, the lender will be notified of the status change. Also, if animals are pledged as collateral on a loan, and a multiple ownership situation occurs, all lenders shown as holding the animals as collateral will be notified of the multiple ownership situation.

Queue In the bitsid System you can create a list of specific files on your computer containing individual animal records that you wish to enroll. Once a file is included on the “queue” you can upload it or delete it from your upload queue. If you are interrupted during the upload (a power break, lost internet connection, etc.) you can find what has been uploaded and what is still waiting to be uploaded.

Record This consists of individual data elements such as the RFID Number, an Ear Tag Number, Retinal Scan, Time, Date, GPS Coordinates, Owner ID, and other required or optional elements that are associated with a single animal. Each animal that you plan to pledge as loan security will have a record in your file and a corresponding record in the bitsid System database once your file containing that record is transferred to bitsid System using the “Upload Collateral” selection.

Registration bits Clients, Lenders and Service Providers must all register to participate in or receive services from the bitsid System. This allows bits to control the reports and flow of information to the proper parties. bits Ltd. does not sell or share this information with third parties except as previously authorized by the livestock owner to provide notice to lenders and other clients who hold an equity interest in the collateral.

Required Fields Required fields in order to enroll a valid record are:

4. Bronze Level: A Visual Tag Number, a Digital Image of the Animal’s Head, GPS coordinates , a Time and Date Stamp

5. Silver level: A unique RFID/EID Number, a Digital Image of the Animal’s Head, GPS coordinates , a Time and Date Stamp

6. Gold Level: Two Retinal Images (one from each eye), GPS coordinates, a Time and Date Stamp

Retinal Scan A digital image of the distinctive vascular pattern found on the inside back of an animal’s eye. The retinal pattern ID is distinctive for each animal’s eye and is distinctive between animals. Statistically, a retinal pattern is more unique than a human finger print!

RFID RFID is an acronym for Radio Frequency Identification. RFID systems include special button ear tags, neck tags, chip implants, and boluses that reflect a radio wave or other electronic signal generated by an RFID reader or wand. This may also be referred to as an EID (Electronic Identification). RFID/EID systems may include an active transmitter, or be full or half Doppler passive tags. The ID used in RFID systems need to be “permanently” affixed to the animal. All RFID/EID enrollments qualify for the Silver Level of service from bits Ltd.

Service Provider A business or person registered on the bitsid System who is charged with managing livestock for specified animal owners, or owner groups. In order to provide management services to an owner, a service provider must be registered on the bitsid System, and be authorized by the cattle owner or owner group. Once authorized, a service provider can (on behalf of the animal owner) upload files and records, pay enrollment fees, manage records and assign collateral to any registered lender.

Software Release Number bits Client Software is periodically improved to make creating a Data Collection Profile, Data Collection, and File Completion more effective. Clients will be notified via e-mail when a new release of the bits Client Software is available to them. It is recommended that the latest Software Release be used to create bits Client Files (BCF) for uploading to the bitsid Database. The Software Release Number identifies the version a client is using. This number appears on the “Home Page” of the bits Client Software. Clients can verify that they are using the latest release by selecting the “Clients Software Downloads” button on the Log-In Screen at www.bitsid.com.

Source Verification GPS coordinates are required for each animal enrolled in the bitsid Database. This is done both as a secure identification measure, and to provide owners with location information. The history of locations that have been entered for each individual animal can be retrieved by the livestock owner to help comply with Country of Origin requirements and to obtain premiums (or avoid discounts) for source verification when the animals are sold.

Status An enrolled animal (as defined by a record on the bits System Database) can be Active-Pledged, or Active-Unpledged. Active-Pledged and Active-Unpledged records can be changed on the Manage Collateral screen to Pledged, Unpledged, Sold, Missing or Deceased. Any change of status for an enrolled animal will generate an email to effected lenders that they have a report available on the bitsid System reporting the change.

Tattoos This is a visual animal identification method which qualifies for the Bronze level of service from bits Ltd. (the same way as an ear tag).

Time/Date Stamp Various technologies used to build the animal ID records for bitsid System will include the time and date automatically in each animal ID record to “stamp” the record.

Update Changing any or all of the non-permanent data elements in a database record to reflect more accurate or more up-to-date information.

Upload Copying data files or records from your computer to the bitsid System database. While you are uploading your records, the bitsid System will search your uploads to find any records that do not qualify as complete records, or are being included in the upload multiple times. The system will also search your new records against those records you have previously uploaded and notify you of any duplicate animal records. Once these duplicates or incomplete records are removed from the upload, you will be able to enroll the new animals in the data base by completing the credit card charge authorization.

Username An individualized and unique name selected by an enrolling owner, lender or service provider when registering on the bitsid System. The Username cannot be duplicated in the bitsid system, nor can it be changed. Usernames must have a minimum of one upper case and one lower case letter. Please store and protect your Username from unauthorized use.

Validate Records The bitsid System tests all of the records to be enrolled in the bitsid database in several ways to prevent clients from overstating assets or enrolling incomplete records.

View This is an option available to clients in several different areas of the bitsid System. It allows the user to see more detail of the file, record or field connected to the particular view option.

Visual Identification A system of identification relying on an attachable tag or tattoo that allows for individual animal identification (Ear Tag; BANGS Tag; Bar Code Tag; etc).