How to Apply Hotpatch mode in EBS R12 (12.1.3)

[oracle@xyzc 18997150]$ adpatch options=hotpatch

                     Copyright (c) 2002 Oracle Corporation
                        Redwood Shores, California, USA

                         Oracle Applications AutoPatch

                                 Version 12.0.0

NOTE: You may not use this utility for custom development
      unless you have written permission from Oracle Corporation.


Attention: AutoPatch no longer checks for unapplied pre-requisite patches.
You must use OAM Patch Wizard for this feature. Alternatively, you can
review the README for pre-requisite information.

Signon Password Policies (Production Server)

Profile Options:
A number of profile options relate to the seeded delivered password policies. 

Signon Password Case:

This profile will enable case sensitivity for password. To make it case sensitive it will make passwords more secure because combination of upper and lower characters will be used. When passwords are not case sensitive the entered password by the user will be uppered and validated against the encrypted password stored with the user.

Signon Password Custom:

This profile will provide the name of the custom java class which enables the use of custom, client specific, password policies.

Signon Password Failure Limit:

This profile provides the number of login attempts an user can do. When the number of attempts exceeds this setting the users' account will be blocked.

Signon Password Hard To Guess:

Setting this profile to Yes will provide the following password policies:

1) The password containts at least one letter AND at least one number
2) the password does not contain the username
3) the password does not contain any repeating characters

Signon Password Length:

This profile will give the minimum length of an user password

Signon Password No Reuse:

This profile will provide the number of days an user must wait before reusing an earlier used password.