L-2023-159, Part 3 Exemption Request Regarding Enhanced Weapons, Firearms Background Checks and Security Event Notifications Final Rule
ML23320A265 | |
Person / Time | |
---|---|
Site: | Point Beach |
Issue date: | 11/16/2023 |
From: | Strand D Point Beach |
To: | Office of Nuclear Reactor Regulation, Document Control Desk |
References | |
L-2023-159 | |
Download: ML23320A265 (1) | |
Text
1RYHPEHU
/
&)5
861XFOHDU5HJXODWRU\&RPPLVVLRQ
$WWQ'RFXPHQW&RQWURO'HVN
- DVKLQJWRQ'&
5H 3RLQW%HDFK1XFOHDU3ODQW8QLWVDQG
'RFNHW1RVDQG
5HQHZHG)DFLOLW\2SHUDWLQJ/LFHQVHV'35DQG'35
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG
6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
3XUVXDQWWR&)51H[W(UD(QHUJ\3RLQW%HDFK//& 1H[W(UD KHUHE\UHTXHVWVDQH[HPSWLRQIURP
WKH(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQVILQDOUXOHIRU3RLQW
%HDFK1XFOHDU3ODQW8QLWVDQG 3RLQW%HDFK ,QDFFRUGDQFHZLWK)HGHUDO5HJLVWHUQRWLFH)5
FRPSOLDQFHZLWKWKHILQDOUXOHUHTXLUHPHQWVPXVWEHDFKLHYHGE\-DQXDU\7KHSURSRVHGH[HPSWLRQ
ZRXOG UHOLHYH ILQDO UXOH FRPSOLDQFH DW 3RLQW %HDFK XQWLO 'HFHPEHU RU GD\V IROORZLQJ
SXEOLFDWLRQRIWKH5HJXODWRU\*XLGHV 5*V GHVFULEHGLQ)5ZKLFKHYHULVODWHU
2Q 0DUFK WKH 1XFOHDU 5HJXODWRU\ &RPPLVVLRQ 15& QRWLFHG LQ WKH )HGHUDO 5HJLVWHU WKH
(QKDQFHG :HDSRQV )LUHDUPV %DFNJURXQG &KHFNV DQG 6HFXULW\ (YHQW 1RWLILFDWLRQV ILQDO UXOH KHUHWR
NQRZQDVWKH³ILQDOUXOH' ZLWKDQ$SULOHIIHFWLYHGDWHDQGD-DQXDU\FRPSOLDQFHGDWH,Q
UHVSRQVH1H[W(UDSHUIRUPHGDSUHOLPLQDU\JDSDQDO\VLVRIWKHQHZYHUVXVFXUUHQWUHTXLUHPHQWVDSSOLFDEOH
UHJXODWRU\JXLGDQFHDQG3RLQW%HDFKVHFXULW\SROLFLHVDQGSURFHGXUHVLQFOXGLQJVHFXULW\DQGRSHUDWLRQV
SHUVRQQHOWUDLQLQJ%DVHGRQLWVUHYLHZ1H[W(UDGHWHUPLQHGWKDWDWHPSRUDU\H[HPSWLRQIURPWKHILQDOUXOH
ZLOO EH QHFHVVDU\ WR SURYLGH VXIILFLHQW WLPH WR DFKLHYH IXOO FRPSOLDQFH DW 3RLQW %HDFK 7KH SURSRVHG
FRPSOLDQFHGDWHRI'HFHPEHURUGD\VIROORZLQJSXEOLFDWLRQRIWKH5*VGHVFULEHGLQ)5
ZKLFKHYHULVODWHULVEDVHGRQWKH15&¶VSURMHFWHGWLPHOLQHIRULVVXLQJUHYLVHGUHJXODWRU\JXLGDQFH
DQGWKHWLPHWRFRPSOHWHWKHUHTXLVLWHFKDQJHPDQDJHPHQWSURFHVVHV'XULQJWKHSHULRGRIH[HPSWLRQ
1H[W(UD ZLOO FRQWLQXH WR LPSOHPHQW WKH 3RLQW %HDFK VHFXULW\ SODQ FRQVLVWHQW ZLWK 5* 5HYLVLRQ
$'$06$FFHVVLRQ1R0/ DQG*HQHULF/HWWHU $'$06$FFHVVLRQ1R0/
7KHHQFORVXUHWRWKLVOHWWHUSURYLGHVDQHYDOXDWLRQRIWKHSURSRVHGH[HPSWLRQ7KHHYDOXDWLRQGHPRQVWUDWHV
WKDWWKHSURSRVHGH[HPSWLRQZLOOQRWSUHVHQWDQXQGXHULVNWRSXEOLFKHDOWKDQGVDIHW\LVQRWLQLPLFDOWRWKH
FRPPRQGHIHQVHDQGVHFXULW\DQGLVLQWKHSXEOLFLQWHUHVWDQGLVWKHUHE\SHUPLVVLEOHXQGHU&)5
1H[W(UD UHTXHVWV DSSURYDO RI WKH UHTXHVWHG H[HPSWLRQ E\ 1RYHPEHU WR DVVXUH FRQWLQXHG
UHJXODWRU\FRPSOLDQFHDQGXQLIRUPLW\LQ3RLQW%HDFKVHFXULW\SURJUDPSURFHGXUHVDQGSUDFWLFHV
7KLVOHWWHUFRQWDLQVQRQHZRUUHYLVHGUHJXODWRU\FRPPLWPHQWV
6KRXOG \RX KDYH DQ\ TXHVWLRQV UHJDUGLQJ WKLV VXEPLVVLRQ SOHDVH FRQWDFW 0U .HQQHWK 0DFN )OHHW
/LFHQVLQJ0DQDJHUDW
)ORULGD3RZHU /LJKW&RPSDQ\
(QGHDYRU'U-XSLWHU)/
/
3DJHRI
,GHFODUHXQGHUSHQDOW\RISHUMXU\WKDWWKHIRUHJRLQJLVWUXHDQGFRUUHFW
([HFXWHGRQWKHWKGD\RI1RYHPEHU
6LQFHUHO\
James Digitally signed by James Michael Davis DN: cn=James Michael Davis,
Michael Davis o=Licensing, ou=NextEra Duane Arnold, email=j.michael.davis@nee.com, c=US Date: 2023.11.16 12:27:12 -06'00' , for BBBBBBBBBBBBBBBBB
'LDQQH6WUDQG
- HQHUDO0DQDJHU5HJXODWRU\$IIDLUV
(QFORVXUH
5HTXHVWIRU([HPSWLRQIURP)LQDO5XOH&RPSOLDQFH'DWH
FF 8615&5HJLRQDO$GPLQLVWUDWRU5HJLRQ,,,
3URMHFW0DQDJHU8615&3RLQW%HDFK1XFOHDU3ODQW
5HVLGHQW,QVSHFWRU8615&3RLQW%HDFK1XFOHDU3ODQW
3XEOLF6HUYLFH&RPPLVVLRQRI:LVFRQVLQ
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
%$&.*5281'
2Q0DUFKWKH1XFOHDU5HJXODWRU\&RPPLVVLRQ 15& LVVXHGD)LQDO5XOHHQWLWOHG³(QKDQFHG
- HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV' KHUHWRNQRZQDVWKH³ILQDO
UXOH' $VVSHFLILHGLQWKH)HGHUDO5HJLVWHU>)5@WKHILQDOUXOHKDVDQHIIHFWLYHGDWHRI$SULO
DQGDFRPSOLDQFHGDWHRI-DQXDU\7KHILQDOUXOHFRQWDLQVQHZHOHPHQWVVXFKDV
x 1HZWHUPLQRORJ\DQGDVVRFLDWHGUHTXLUHPHQWVFRYHULQJ³FRQGLWLRQVDGYHUVHWRVHFXULW\'
x 1HZGHILQLWLRQVRIWKHWHUP³FRQWUDEDQG'DQG³WLPHRIGLVFRYHU\'LQ&)5
x 1HZSRLQWRIFRQWDFWUHTXLUHPHQWVZLWKWKH)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ )$$
x &KDQJHVUHSRUWLQJUHTXLUHPHQWVDSSOLFDEOHWRVHFXULW\HYHQWVIURP
R KRXUQRWLILFDWLRQVDQGKRXUUHFRUGLQJRIVHFXULW\HYHQWV
7REHFRPH
R KRXUKRXUKRXUQRWLILFDWLRQVDQGKRXUUHFRUGLQJRIVHFXULW\HYHQWV
R &RGLILHVWKHDFFHOHUDWHGFDOOWRWKH15&IURP15&%XOOHWLQ
&RQFXUUHQWZLWKWKHSXEOLFDWLRQRIWKHILQDOUXOHWKH15&LVVXHGWKHIROORZLQJ5HJXODWRU\*XLGHV 5*
WRVXSSRUWWKHLPSOHPHQWDWLRQUHTXLUHPHQWVVHWIRUWKLQWKHILQDOUXOH
x 5* ³3K\VLFDO 6HFXULW\ (YHQW 1RWLILFDWLRQV 5HSRUWV DQG 5HFRUGV' 5HYLVLRQ $'$06
$FFHVVLRQ1RV0/$0/$
x 5* ³(QKDQFHG :HDSRQV $XWKRULW\ 3UHHPSWLRQ $XWKRULW\ DQG )LUHDUPV %DFNJURXQG
&KHFNV'5HYLVLRQ $'$06$FFHVVLRQ1R0/$
x 5*³6XVSLFLRXV$FWLYLW\5HSRUWV'5HYLVLRQ $'$06$FFHVVLRQ1R0/$
'XULQJ DQ $XJXVW SXEOLF PHHWLQJ $'$06 $FFHVVLRQ 1R 0/$ WKH 15& VWDII
DFNQRZOHGJHGDPELJXLWLHVDQGLQFRQVLVWHQFLHVLQWKHILQDOUXOHDQGDVVRFLDWHGJXLGDQFHDQGSURSRVHG
DUHYLVLRQGDWHIRUFODULI\LQJWKHJXLGDQFHWKURXJKSXEOLFDWLRQE\$SULOZKLFKLVWKUHHPRQWKVDIWHU
WKH-DQXDU\FRPSOLDQFHGDWHVSHFLILHGLQ)HGHUDO5HJLVWHU)5$GGLWLRQDOO\WKH
15&DFNQRZOHGJHGWKHQHHGIRUUXOHPDNLQJWRDGGUHVVLGHQWLILHGLVVXHVZLWKWKHILQDOUXOHODQJXDJH
%$6,6)25(;(037,215(48(67
&)56SHFLILF([HPSWLRQVDOORZVWKH&RPPLVVLRQWRJUDQWH[HPSWLRQVIURPWKHUHTXLUHPHQWV
RI3DUW³DVLWGHWHUPLQHVDUHDXWKRUL]HGE\ODZDQGZLOOQRWHQGDQJHUOLIHRUSURSHUW\RUWKHFRPPRQ
GHIHQVH DQGVHFXULW\ DQGDUHRWKHUZLVH LQ WKH SXEOLF LQWHUHVW' $V H[SODLQHGEHORZ WKLV H[HPSWLRQ
UHTXHVWPHHWVWKHFULWHULDVHWIRUWKLQ&)5
7KHLQGXVWU\KDVLGHQWLILHGVHYHUDOLVVXHVLQWKHILQDOUXOHDQGWKHVXSSRUWLQJ5HJXODWRU\*XLGHVWKDW
UHTXLUH FODULILFDWLRQ IURP WKH 15& IRU 1H[W(UD WR VXFFHVVIXOO\ LPSOHPHQW WKH UHTXLUHPHQWV DW 3RLQW
%HDFK$VPHQWLRQHGDERYHWKH15&LVFXUUHQWO\GHYHORSLQJDUHVROXWLRQIRUWKHFRGHODQJXDJHLVVXHV
DQGDGGUHVVLQJJXLGDQFHUHYLVLRQV$VGLVFXVVHGLQWKH$XJXVWSXEOLFPHHWLQJWKH15&
SODQVWRLVVXHDGGLWLRQDOJXLGDQFHLQ$SULOZKLFKLVWKUHHPRQWKVDIWHUWKHFRPSOLDQFHGDWHRI
-DQXDU\:LWKRXWDGGLWLRQDOJXLGDQFHHQIRUFHPHQWUHOLHIRUDWHPSRUDU\H[HPSWLRQLWLVOLNHO\
WKDW1H[W(UDZLOOQHHGWRPDNHFKDQJHVWRLWVSK\VLFDOVHFXULW\SODQVDQGSURFHVVHVWZLFHRQFHWR
DFKLHYH FRPSOLDQFH ZLWK LWV RZQ LQWHUSUHWDWLRQ RI WKH ILQDO UXOH ZLWKRXW WKH EHQHILW RI WKH DGGLWLRQDO
JXLGDQFHEHLQJGHYHORSHGE\15& DQGDJDLQIROORZLQJLVVXDQFHRIWKHUHYLVHGUHJXODWRU\JXLGDQFH
7KHDPELJXLW\DQGFRQIOLFWFUHDWHGE\WKHILQDOUXOHODQJXDJHDQGH[LVWLQJJXLGDQFHVRPHRIZKLFKDUH
³(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDOUXOHDQGJXLGDQFH'
)HG5HJ 0DUFK
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
GHVFULEHGEHORZFRXOGUHVXOWLQXQQHFHVVDU\FRQIXVLRQWKDWZLOOGHWUDFWIURPWKHFXUUHQWKLJKOHYHORI
DVVXUDQFHSURYLGHGE\WKHH[LVWLQJ3RLQW%HDFKSK\VLFDOVHFXULW\SURJUDP$FFRUGLQJO\1H[W(UDGRHV
QRW EHOLHYH LPSOHPHQWDWLRQ RI WKH ILQDO UXOH SULRU WR LVVXDQFH RI DGGLWLRQDO FODULI\LQJ JXLGDQFH DW D
PLQLPXPLVLQWKHEHVWLQWHUHVWRIWKHSXEOLF/LVWHGEHORZDUHH[DPSOHVRILVVXHVZLWKWKHILQDOUXOH
ZKLFKQHFHVVLWDWHDWHPSRUDU\H[HPSWLRQIRU3RLQW%HDFK7KHH[DPSOHVDUHQRWDOOHQFRPSDVVLQJ
DQGDQH[HPSWLRQIURPWKHHQWLUHW\RIWKHILQDOUXOHLVUHTXHVWHGWRFRPSOHWH1H[W(UD¶VDQDO\VLVRIWKH
QHZUHTXLUHPHQWVUHYLVLRQVWRDSSOLFDEOHUHJXODWRU\JXLGDQFHDQGWKHLPSDFWWR3RLQW%HDFKSK\VLFDO
VHFXULW\SODQSROLFLHVDQGSURFHGXUHVLQFOXGLQJVHFXULW\DQGRSHUDWLRQVSHUVRQQHOWUDLQLQJ'XULQJWKH
SURSRVHG SHULRG RI H[HPSWLRQ 1H[W(UD ZLOO FRQWLQXH WR LPSOHPHQW WKH 3RLQW %HDFK VHFXULW\ SODQ
FRQVLVWHQWZLWK5*5HYLVLRQ $'$06$FFHVVLRQ1R0/ DQG*HQHULF/HWWHU */
$'$06$FFHVVLRQ1R0/
&RQGLWLRQV$GYHUVHWR6HFXULW\
7KHLQWURGXFWLRQRIWKHWHUP³FRQGLWLRQVDGYHUVHWRVHFXULW\'ZLWKLQ&)5LVXQGHILQHG
DQGDPELJXRXV1H[W(UDKDVHVWDEOLVKHGDVUHTXLUHGDIRUPDO&RUUHFWLYH$FWLRQ3URJUDPLQ
DFFRUGDQFHZLWK&)53DUW$SSHQGL[%&ULWHULRQ;9,$VDUHVXOW1H[W(UDKDVGHYHORSHG
SURFHGXUHVDQGSURFHVVHVWRGHWHUPLQHFRQGLWLRQVDGYHUVHWRTXDOLW\DVLWUHODWHVWRWKHVHFXULW\
RUJDQL]DWLRQ HJ&RQGLWLRQ$GYHUVHWR5HJXODWRU\&RPSOLDQFH
x 1H[W(UD 1XFOHDU )OHHW SURFHGXUH 3,$$ &RQGLWLRQ 5HSRUWLQJ GHILQHV VSHFLILF
HYHQWVRUVLWXDWLRQVWKDWUHVXOWLQDFRQGLWLRQDGYHUVHWRTXDOLW\ &$4 LQFOXGLQJVHFXULW\
UHODWHG&$4VDQGVLJQLILFDQWFRQGLWLRQVDGYHUVHWRTXDOLW\ 6&$4V
- LYHQ WKH UREXVW QDWXUH RI 1H[W(UD¶V &RUUHFWLYH $FWLRQ 3URJUDP WKH DGGLWLRQDO GXSOLFDWLRQ RI
SURFHGXUHVDQGRUUHYLVLRQRISURFHGXUHVWRDFFRPPRGDWHWKHQHZWHUP³FRQGLWLRQVDGYHUVHWR
VHFXULW\' DGGV DQ XQQHFHVVDU\ DGPLQLVWUDWLYH EXUGHQ ZLWK QR LPSURYHPHQW WR WKH &RUUHFWLYH
$FWLRQ3URJUDPWKH3RLQW%HDFKVHFXULW\SODQRUWRRYHUDOOSXEOLFKHDOWKDQGVDIHW\
'HILQLWLRQVLQ&)5
7KHQHZGHILQLWLRQVH[SDQGGHILQLWLRQVVSHFLILHGLQ15&HQGRUVHG1(,³7HPSODWH
IRU WKH 6HFXULW\ 3ODQ 7UDLQLQJ DQG 4XDOLILFDWLRQ 3ODQ 6DIHJXDUGV &RQWLQJHQF\ 3ODQ >DQG
,QGHSHQGHQW 6SHQW )XHO 6WRUDJH ,QVWDOODWLRQ 6HFXULW\ 3URJUDP@' 5HYLVLRQ DQG 5*
³3K\VLFDO3URWHFWLRQ3URJUDPVDW1XFOHDU3RZHU5HDFWRUV'7KHH[LVWLQJGHILQLWLRQVZHUHDSSOLHG
WRGHVLJQVHFXULW\SODQVDQGSURFHGXUHV([DPSOHVRILVVXHVWKHQHZGHILQLWLRQVSUHVHQWLQFOXGH
x &RQWUDEDQG6SHFLILFDOO\WKHSDUHQWKHWLFDOGHVFULELQJ³RWKHUGDQJHURXVPDWHULDOV'WRLQFOXGH
GLVHDVHFDXVLQJDJHQWVUHTXLUHV1H[W(UDWRSURWHFWDJDLQVWSHUFHLYHGWKUHDWVEH\RQGWKH
'HVLJQ %DVLV 7KUHDW '%7 GHVFULEHG LQ &)5 :LWKRXW WKH SURSRVHG H[HPSWLRQ
DSSOLFDWLRQRIWKLVH[SDQGHGGHILQLWLRQZLOOFKDOOHQJH3RLQW%HDFKVHFXULW\SODQPHWKRGVRI
FRPSO\LQJZLWK J LL % DQG K ZKLFKVWDWH HPSKDVLVDGGHG
J $FFHVVFRQWUROV
&RQVLVWHQWZLWKWKHIXQFWLRQRIHDFKEDUULHURUEDUULHUV\VWHPWKHOLFHQVHHVKDOOFRQWURO
SHUVRQQHOYHKLFOHDQGPDWHULDODFFHVVDVDSSOLFDEOHDWHDFKDFFHVVFRQWUROSRLQWLQ
DFFRUGDQFHZLWKWKHSK\VLFDOSURWHFWLRQSURJUDPGHVLJQUHTXLUHPHQWVRI E
LL :KHUHYHKLFOHEDUULHUVDUHHVWDEOLVKHGWKHOLFHQVHHVKDOO
% 6HDUFKYHKLFOHVDQGPDWHULDOVIRUFRQWUDEDQGRURWKHULWHPVZKLFKFRXOGEHXVHG
WRFRPPLWUDGLRORJLFDOVDERWDJHLQDFFRUGDQFHZLWKSDUDJUDSK K RIWKLVVHFWLRQ
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
K 6HDUFKSURJUDPV
7KHREMHFWLYHRIWKHVHDUFKSURJUDPLVWRGHWHFWGHWHUDQGSUHYHQWWKHLQWURGXFWLRQRI
ILUHDUPVH[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEHXVHGWRFRPPLW
UDGLRORJLFDOVDERWDJH7RDFFRPSOLVKWKLVWKHOLFHQVHHVKDOOVHDUFKLQGLYLGXDOVYHKLFOHV
DQG PDWHULDOV FRQVLVWHQW ZLWK WKH SK\VLFDO SURWHFWLRQ SURJUDP GHVLJQ UHTXLUHPHQWV LQ
SDUDJUDSK E RIWKLVVHFWLRQDQGWKHIXQFWLRQWREHSHUIRUPHGDWHDFKDFFHVVFRQWURO
SRLQWRUSRUWDOEHIRUHJUDQWLQJDFFHVV
2ZQHUFRQWUROOHGDUHDVHDUFKHV
LY 9HKLFOHVHDUFKHVPXVWEHDFFRPSOLVKHGWKURXJKWKHXVHRIHTXLSPHQWFDSDEOHRI
GHWHFWLQJILUHDUPVH[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEHXVHGWR
FRPPLWUDGLRORJLFDOVDERWDJHRUWKURXJKYLVXDODQGSK\VLFDOVHDUFKHVRUERWKWRHQVXUH
WKDWDOOLWHPVDUHLGHQWLILHGEHIRUHJUDQWLQJDFFHVV
3URWHFWHGDUHDVHDUFKHV/LFHQVHHVVKDOOVHDUFKDOOSHUVRQQHOYHKLFOHVDQGPDWHULDOV
UHTXHVWLQJDFFHVVWRSURWHFWHGDUHDV
L 7KHVHDUFKIRUILUHDUPVH[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEH
XVHG WR FRPPLW UDGLRORJLFDO VDERWDJH VKDOO EH DFFRPSOLVKHG WKURXJK WKH XVH RI
HTXLSPHQWFDSDEOHRIGHWHFWLQJWKHVHLWHPVRUWKURXJKYLVXDODQGSK\VLFDOVHDUFKHVRU
ERWKWRHQVXUHWKDWDOOLWHPVDUHFOHDUO\LGHQWLILHGEHIRUHJUDQWLQJDFFHVVWRSURWHFWHG
DUHDV7KHOLFHQVHHVKDOOVXEMHFWDOOSHUVRQVH[FHSWRIILFLDO)HGHUDOVWDWHDQGORFDOODZ
HQIRUFHPHQW SHUVRQQHO RQ RIILFLDO GXW\ WR WKHVH VHDUFKHV XSRQ HQWU\ WR WKH SURWHFWHG
DUHD$UPHGVHFXULW\RIILFHUVZKRDUHRQGXW\DQGKDYHH[LWHGWKHSURWHFWHGDUHDPD\
UHHQWHUWKHSURWHFWHGDUHDZLWKRXWEHLQJVHDUFKHGIRUILUHDUPV
2IQRWH J XVHVWKHWHUPFRQWUDEDQGZKLOH K XVHVWHUPLQRORJ\FRQVLVWHQW
ZLWK WKH GHILQLWLRQ RI FRQWUDEDQG LQ 1(, DQG 5* 7KH VSHFLILF LQFOXVLRQ RI
³GLVHDVHFDXVLQJDJHQWV'LQWKHQHZUHJXODWRU\GHILQLWLRQRIFRQWUDEDQGZLOOUHTXLUH1H[W(UD
WRPRGLI\LWVVHFXULW\SODQSURFHGXUHVIRUFRPSOLDQFHZLWKSDUDJUDSK J LQZD\VWKDW
DUHXQFOHDUDWWKLVWLPH1H[W(UDXQGHUVWDQGVWKDWWKH15&LVORRNLQJDWSRWHQWLDOUHVROXWLRQV
IRUWKLVLVVXHEXWZLWKRXWIXUWKHUJXLGDQFHRUUXOHPDNLQJFRPSOLDQFHZLWKWKLVUHTXLUHPHQW
FDQQRWEHUHOLDEO\DFKLHYHGZLWKLQWKHH[SHFWHGFRPSOLDQFHSHULRG
x 7LPH RI 'LVFRYHU\ 6SHFLILFDOO\ WKH QHZ GHILQLWLRQ VSHFLILHV WKDW D FRJQL]DQW LQGLYLGXDO ³LV
FRQVLGHUHGDQ\RQHZKRE\SRVLWLRQH[SHULHQFHDQGRUWUDLQLQJLVH[SHFWHGWRXQGHUVWDQG
WKDW D SDUWLFXODU FRQGLWLRQ RU HYHQW DGYHUVHO\ LPSDFWV VHFXULW\' $W 3RLQW %HDFK 1H[W(UD
DSSOLHVWKHGHILQLWLRQLQ1(,DQG5*ZKHUHE\³DVXSHUYLVRURUPDQDJHUPDNHVD
GHWHUPLQDWLRQWKDWDYHULILHGGHJUDGDWLRQRIDVHFXULW\VDIHJXDUGVPHDVXUHRUDFRQWLQJHQF\
VLWXDWLRQH[LVWV'WRHVWDEOLVK7 IRUVHFXULW\UHODWHGHYHQWV
7KHQHZGHILQLWLRQH[SDQGVWKHSRRORISHUVRQQHOSUHYLRXVO\XVHGE\OLFHQVHHVWRGHWHUPLQH
7 IRU DQ HYHQW GXH WR WKH XQGHILQHG QDWXUH RI ³SRVLWLRQ H[SHULHQFH DQGRU WUDLQLQJ'
$GGLWLRQDOO\ WKH ORZHU WKUHVKROG IRU UHFRJQLWLRQ RI ³DGYHUVHO\ LPSDFWV VHFXULW\' YHUVXV
³UHFRJQLWLRQ RI YHULILHG GHJUDGDWLRQ RI D VHFXULW\ VDIHJXDUGV PHDVXUH RU D FRQWLQJHQF\
VLWXDWLRQ'FRQWULEXWHVWRWKHH[SDQVLRQRIWKHSHUVRQQHOSRRO1H[W(UDEHOLHYHVWKHGHILQLWLRQ
LQ1(,DQG5*LVWKHDSSURSULDWHWKUHVKROGIRU7 IRUVHFXULW\UHODWHGHYHQWV
- LWKRXW WKH SURSRVHG H[HPSWLRQ DQG FODULILFDWLRQ IURP QHZ RU UHYLVHG JXLGDQFH WKH
DSSOLFDWLRQRIWKLVQHZGHILQLWLRQZLOOUHTXLUH1H[W(UDWRLPSOHPHQWLPPHGLDWHFKDQJHVWRWKH
3RLQW%HDFKVHFXULW\SURJUDPZKLFKUHYLVHWUDLQLQJPRGXOHVIRUJHQHUDOSODQWHPSOR\HHV
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
SRWHQWLDOO\LQFOXGLQJDSSOLFDEOH1$17H/WUDLQLQJ WRH[SDQGUHVSRQVLELOLW\IRUHVWDEOLVKLQJ
WLPHRIGLVFRYHU\DFURVVDEURDGVSHFWUXPRIVWDWLRQSHUVRQQHODVFRJQL]DQWLQGLYLGXDOV
)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ )$$ /RFDO&RQWURO7RZHU3RLQWRI&RQWDFW
&)5HVWDEOLVKHVUHTXLUHPHQWVIRUUHSRUWLQJVXVSLFLRXVDFWLYLWLHVLQYROYLQJDLUFUDIWWR
DOLFHQVHH¶VORFDO)$$FRQWUROWRZHU6SHFLILFDOO\1H[W(UDZRXOGEHUHTXLUHGWR
x (VWDEOLVKDSRLQWRIFRQWDFWZLWKWKHORFDO)$$FRQWUROWRZHUDQG
x 'RFXPHQWWKHSRLQWRIFRQWDFWLQZULWWHQFRPPXQLFDWLRQSURFHGXUHV
- LYHQ WKH -DQXDU\ FRPSOLDQFH GDWH 1H[W(UD PD\ QRW EH DEOH WR WLPHO\ HVWDEOLVK D
PHPRUDQGXPRIXQGHUVWDQGLQJRUVLPLODUDJUHHPHQWZLWKWKHORFDO)$$FRQWUROWRZHUDXWKRULW\
ZLWKRXWZKLFKFUHGHQFHPD\QRWEHJLYHQWRDVXVSLFLRXVDFWLYLW\FDOOIURP3RLQW%HDFKRSHUDWRUV
1H[W(UDVHFXULW\SURFHGXUHVVSHFLI\DQQXPEHUFRQWDFWZLWKWKH)$$KRZHYHUWKLVVDPH
QXPEHULVVKDUHGZLWK1H[W(UD¶VRWKHUQXFOHDUVLWHVWKURXJKRXWWKH8QLWHG6WDWHVDQGLWLVXQFOHDU
ZKHWKHU WKLV JHQHUDO FRQWDFW LQIRUPDWLRQ VDWLVILHV WKH ORFDO )$$ FRQWURO WRZHU UHTXLUHPHQWV
VSHFLILHGLQWKHILQDOUXOH:LWKRXWWKHSURSRVHGH[HPSWLRQWRSURYLGHWLPHIRUUHYLVHGUHJXODWRU\
JXLGDQFH RU UXOHPDNLQJ 1H[W(UD FDQQRW FRQILGHQWO\ DVVHVV LWV FRPSOLDQFH ZLWK WKLV ILQDO UXOH
UHTXLUHPHQW
5HJXODWRU\*XLGHV
,Q0DUFKWRVXSSRUWWKHLPSOHPHQWDWLRQRIWKHILQDOUXOHWKH15&LVVXHG5*³3K\VLFDO
6HFXULW\(YHQW1RWLILFDWLRQV5HSRUWVDQG5HFRUGV'5HYLVLRQ$VVWDWHGDERYHGXULQJWKH
$XJXVWSXEOLFPHHWLQJWKH15&DFNQRZOHGJHGDPELJXLWLHVDQGLQFRQVLVWHQFLHVLQWKH
ILQDOUXOHODQJXDJHDQGDVVRFLDWHGJXLGDQFH%HORZDUHH[DPSOHVRILGHQWLILHGLVVXHVZLWKWKH
UHJXODWRU\JXLGDQFHZKLFKQHFHVVLWDWHWKHSURSRVHGH[HPSWLRQIRU3RLQW%HDFK
KRXUYVPLQXWHQRWLILFDWLRQUHTXLUHPHQW
x H LLL DQG LY UHTXLUHV D KRXU QRWLILFDWLRQ IRU FRQWUDEDQG DWWHPSWHG RU
DFWXDOLQWURGXFWLRQRIFRQWUDEDQGLQWRD3$9$RU0$$
R 7KHGHILQLWLRQRIFRQWUDEDQGFRQWDLQVWKHWHUP³LQFHQGLDULHV'
x D UHTXLUHGDPLQXWHQRWLILFDWLRQIRUKRVWLOHDFWLRQV
R 5*5HY6HFWLRQSDJHSURYLGHVH[DPSOHVRIKRVWLOHDFWLRQV
7KHGLVFRYHU\RIXQDXWKRUL]HGH[SORVLYHPDWHULDOVLQFHQGLDU\PDWHULDOVRU
DQLPSURYLVHGH[SORVLYHGHYLFHZLWKLQWKHOLFHQVHH¶VVLWHERXQGDU\
x 7KHILQDOUXOHODQJXDJHUHTXLUHVDKRXUQRWLILFDWLRQIRUDQLQFHQGLDU\GHYLFHDWRULQVLGH
WKH3$9$RU0$$7KH5*GULYHVOLFHQVHHVWRDPLQXWHQRWLILFDWLRQIRUDQLQFHQGLDU\
GHYLFHDWWKHVLWHERXQGDU\ZKLFKLVIXUWKHUDZD\IURPVDIHW\UHODWHGHTXLSPHQW
7KHGLVSDULW\5*5HYLVLRQLQWURGXFHVUHJDUGLQJPLQXWHYHUVXVKRXUQRWLILFDWLRQ
IRUWKHGLVFRYHU\RILQFHQGLDU\PDWHULDOVZDUUDQWVUHJXODWRU\FODULILFDWLRQ6WDWLRQSHUVRQQHO
DUHWUDLQHGDQGIOXHQWLQVWDWLRQSURFHGXUHVDQGDSSOLFDEOHUHJXODWRU\JXLGDQFHWRVXSSRUW
WLPHO\ DQG DFFXUDWH VHFXULW\ HYHQW UHSRUWLQJ +RZHYHU WKH QRWLILFDWLRQ LQFRQVLVWHQF\
GHVFULEHG DERYH FDQ OHDG WR UHSRUWLQJ HUURUV DQG SRWHQWLDOO\ HQIRUFHPHQW DFWLRQ 7KH
SURSRVHGH[HPSWLRQZRXOGSURYLGHWLPHIRUUHYLVHGUHJXODWRU\JXLGDQFHRQWKLVLVVXH
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
KRXUQRWLILFDWLRQYVKRXUUHFRUGLQJRI³ORVWRUXQFRQWUROOHGZHDSRQ'
x H Y UHTXLUHVDKRXUQRWLILFDWLRQIRUDORVWRUXQFRQWUROOHGZHDSRQ
x I UHTXLUHVUHFRUGLQJZLWKLQKRXUV³SK\VLFDOVHFXULW\HYHQWVRUFRQGLWLRQV
WKDWGHFUHDVHVWKHHIIHFWLYHQHVVRIWKHSK\VLFDOVHFXULW\SURJUDP'
R 5* 5HY 6HFWLRQ SDJH SURYLGHV H[DPSOHV RI WKH ³5HFRUGDEOH
(YHQWV DQG &RQGLWLRQV 5HJDUGLQJ 'HFUHDVHV LQ (IIHFWLYHQHVV' WKDW I
UHTXLUHV 7KH 5* LQFOXGHV DQ HYHQW LQYROYLQJ WKH ORVV RI FRQWURO RI DQ DXWKRUL]HG
VHFXULW\ZHDSRQZLWKLQD3$9$0$$RU&$$
7KH FRQIOLFW EHWZHHQ WKH QRWLILFDWLRQ DQG UHFRUGLQJ RI D ORVW RU XQFRQWUROOHG ZHDSRQ RQO\
H[LVWVEHFDXVHRIWKHUHJXODWRU\JXLGDQFHLQ5*5HYLVLRQ$VDEHVWSUDFWLFHDQGWR
VXSSRUWDFFXUDWHGHWHUPLQDWLRQRIQRWLILFDWLRQHYHQWVVWDWLRQSHUVRQQHODUHWUDLQHGDQGIOXHQW
LQ UHIHUHQFLQJ SXEOLVKHG 5*V VWDWLRQ SURFHGXUHV DQG JXLGDQFH DQG RWKHU LQGXVWU\
GRFXPHQWV$GGLWLRQDOFODULW\LVQHHGHGWRVXSSRUWWKHLPSOHPHQWDWLRQRIQRWLILFDWLRQVDQG
UHFRUGNHHSLQJ LQ D FRQVLVWHQW DQG VXFFHVVIXO PDQQHU 7KH SURSRVHG H[HPSWLRQ ZRXOG
SURYLGHWLPHIRUWKHUHYLVHGUHJXODWRU\JXLGDQFHDQGRUUXOHPDNLQJRQWKLVLVVXH
0DOHYROHQWLQWHQWGLVFXVVLRQ
x &)5RQO\UHIHUVWRWKHWHUP³PDOHYROHQWLQWHQW'LQ T DVH[HPSOL
JUDWLDRU³HJ'SDUHQWKHWLFDOGHVFULELQJDFLUFXPVWDQFHZKHUHDOLFHQVHHPD\GHVLUHWR
GHWUDFWDSUHYLRXVSK\VLFDOVHFXULW\HYHQWQRWLILFDWLRQ
R 5*5HY6HFWLRQSDJHWLWOHG³0DOHYROHQW,QWHQWDQG&UHGLEOH%RPE
7KUHDW &RQVLGHUDWLRQV' VWDWHV WKH 15&¶V SRVLWLRQ WKDW RQO\ JRYHUQPHQW RIILFLDOV
KDYHWKHQHFHVVDU\UHVRXUFHVDQGTXDOLILFDWLRQVWRGHWHUPLQHZKHWKHUPDOHYROHQW
LQWHQWZDVSUHVHQWLQDVHFXULW\HYHQW
R 'XULQJWKH0D\DQG$XJXVWSXEOLFPHHWLQJVWKH15&ZDVXQDEOHWR
FRQVLVWHQWO\GHVFULEHZKHQOLFHQVHHVZHUHFDSDEOHRIWKLVGHWHUPLQDWLRQDQGZKHQ
OLFHQVHHVZHUHUHTXLUHGWRKDYHJRYHUQPHQWRIILFLDOVPDNHWKLVGHWHUPLQDWLRQ
R ,Q ³15& 5HVSRQVH WR 3XEOLF &RPPHQWV' FRPPHQW . FRQWDLQV WKH GLVFXVVLRQ
UHJDUGLQJ³FUHGLEOH'DQGSXWVLQWRFRQWH[WWKHFLUFXPVWDQFHVRIWKH15&¶VSRVLWLRQ
DVLWUHODWHVWRWKHGHWHUPLQDWLRQRIPDOHYROHQWLQWHQW
,WLVFOHDUWKDWDVRIWKHSXEOLFDWLRQGDWHRI0DUFKWKHGLVFXVVLRQUHYROYHV
DURXQG WKH PLQXWH QRWLILFDWLRQ UHTXLUHPHQWV DQG QRW EODQNHWO\ DFURVV DOO
VHFXULW\UHODWHGHYHQWV
1H[W(UDEHOLHYHVWKDWLQFHUWDLQFLUFXPVWDQFHVH[WHUQDOJRYHUQPHQWDJHQFLHVDUHEHVW
VXLWHG WR GHWHUPLQH PDOHYROHQW LQWHQW HJ FUHGLEOH ERPE WKUHDW FUHGLEOH WKUHDW
+RZHYHU 1H[W(UD¶V SRVLWLRQ RQ WKH FDSDELOLW\ WR GHWHUPLQH LQWHQW DV LW UHODWHV WR
LGHQWLI\LQJ+XPDQ3HUIRUPDQFHHUURUVDVZHOODVGHWHUPLQLQJ7UXVWZRUWK\DQG5HOLDELOLW\
IRU$FFHVVSXUSRVHVUHPDLQVZLWK1H[W(UD
15&5HVSRQVHWR3XEOLF&RPPHQWV³(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQWQRWLILFDWLRQV5XOH'
15&5,1$, $'$06$FFHVVLRQ1R0/$
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
7KHODFNRIFODULW\RIZKHQLWLVDSSURSULDWHIRUH[WHUQDOJRYHUQPHQWRIILFLDOVWRGHWHUPLQH
PDOHYROHQW LQWHQW FUHDWHV FRQIXVLRQ &ODULILFDWLRQ LV QHHGHG WR SUHYHQW XQQHFHVVDU\
FKDQJHV WR 3RLQW %HDFK VHFXULW\ SODQ SURFHGXUHV VXFK DV DFFHVV DXWKRUL]DWLRQ
SURFHGXUHVWRDZDLWLQYHVWLJDWLRQUHVXOWVIURP15&¶V2IILFHRI,QYHVWLJDWLRQV 2, WKH
LQWHOOLJHQFH FRPPXQLW\ RU D IHGHUDO 6WDWH RU ORFDO ODZ HQIRUFHPHQW DJHQF\ 7KH
SURSRVHGH[HPSWLRQZRXOGSURYLGHWLPHIRUUHYLVHGUHJXODWRU\JXLGDQFHRQWKLVLVVXH
$VVWDWHGHDUOLHUWKHDERYHH[DPSOHVRIDPELJXLWLHVDQGLQFRQVLVWHQFLHVLQWKHILQDOUXOHDUHQRWDOO
HQFRPSDVVLQJ DQG 1H[W(UD¶V JDS DQDO\VLV RI WKH ILQDO UXOH DJDLQVW FXUUHQW UHTXLUHPHQWV LV QRW \HW
FRPSOHWH$FFRUGLQJO\DQH[HPSWLRQIURPWKHHQWLUHW\RIWKHILQDOUXOHLVUHTXHVWHGXQWLO'HFHPEHU
RUGD\VDIWHUSXEOLFDWLRQRIWKHDSSOLFDEOH5*VZKLFKHYHULVODWHU'XULQJWKHSURSRVHG
SHULRGRIH[HPSWLRQ1H[W(UDZLOOFRQWLQXHWRLPSOHPHQWWKH3RLQW%HDFKVHFXULW\SODQFRQVLVWHQWZLWK
5*5HYLVLRQDQG*/
&216,'(5$7,216)25(;(037,21
$VKLJKOLJKWHGLQWKHVHOHFWHGH[DPSOHVDERYHWKHODFNRIFODULW\RQNH\SDUWVRIWKHILQDOUXOHPD\
UHVXOWLQLQDGHTXDWHLPSOHPHQWDWLRQDQGSRWHQWLDOQRQFRPSOLDQFHDQGFRXOGUHVXOWLQPRGLILFDWLRQWR
H[LVWLQJ3RLQW%HDFKVHFXULW\SODQVDQGSURFHGXUHVDWOHDVWWZLFHEDVHGRQLQWHUSUHWDWLRQRIWKHILQDO
UXOHDQGUHJXODWRU\JXLGDQFH$FFRUGLQJO\1H[W(UDUHTXHVWVWKHIROORZLQJEHWDNHQLQWRFRQVLGHUDWLRQ
GXULQJUHYLHZRIWKLVUHTXHVW
x $W3RLQW%HDFK1H[W(UDLPSOHPHQWVDIRUPDO&RUUHFWLYH$FWLRQ3ODQ &$3 DQGHQWHUVLQWRWKH
&$3FRQGLWLRQVDGYHUVHWRTXDOLW\DVWKH\UHODWHWRVHFXULW\SURJUDPVDQGLWHPVWKDWDUHFRQGLWLRQV
DGYHUVHWRUHJXODWRU\FRPSOLDQFH
x $W3RLQW%HDFK1H[W(UDFRPSOLHVZLWKWKHGHILQLWLRQRI&RQWUDEDQGDQG7LPHRI'LVFRYHU\DVWKH\
DUHGHILQHGLQ5*³3K\VLFDO3URWHFWLRQ3URJUDPVDW1XFOHDU3RZHU5HDFWRUV'5HYLVLRQ
DQG LQ 1(, ³7HPSODWH IRU WKH 6HFXULW\ 3ODQ 7UDLQLQJ DQG 4XDOLILFDWLRQ 3ODQ 6DIHJXDUGV
&RQWLQJHQF\3ODQ>DQG,QGHSHQGHQW6SHQW)XHO6WRUDJH,QVWDOODWLRQ6HFXULW\3URJUDP@'
x 1H[W(UDZLOOFRQWDFWWKHORFDO)$$FRQWUROWRZHUDXWKRULW\WRHVWDEOLVKDQRWLILFDWLRQDJUHHPHQWIRU
VXVSLFLRXVDLUFUDIWDFWLYLW\DQGXSRQILQDOL]DWLRQZLOOGRFXPHQWWKHORFDO)$$FRQWUROWRZHUDXWKRULW\
FRQWDFW LQIRUPDWLRQ LQ 3RLQW %HDFK VHFXULW\ FRPPXQLFDWLRQ SURFHGXUHV 'XULQJ WKH SHULRG RI
H[HPSWLRQ1H[W(UDZLOOFRQWLQXHWRXVHWKH)$$FRQWDFWSURFHGXUHVDQGSKRQHQXPEHUFXUUHQWO\
LQSODFH
x $W3RLQW%HDFK1H[W(UDFRPSOLHVZLWKWKHVHFXULW\HYHQWUHSRUWLQJUHTXLUHPHQWVFRQVLVWHQWZLWK
5*5HYLVLRQDQG*/DQGZLOOFRQWLQXHLPSOHPHQWDWLRQLQWKLV PDQQHUGXULQJWKH
SURSRVHGSHULRGRIH[HPSWLRQ
R 7KLVLQFOXGHVWKHDFFHOHUDWHGFDOOWRWKH15&DVLWSHUWDLQVWR15&%XOOHWLQ
x $W3RLQW%HDFK1H[W(UDUHPDLQVFDSDEOHRIPDNLQJYROXQWDU\UHSRUWVRIVXVSLFLRXVDFWLYLWLHVDQG
ZLOOFRQWLQXHLPSOHPHQWDWLRQLQWKLVPDQQHUGXULQJWKHSURSRVHGSHULRGRIH[HPSWLRQ
x 1H[W(UDLVLQIXOOFRPSOLDQFHZLWKWKHQHZ)LWQHVVIRU'XW\5XOHSURPXOJDWHGLQ
x 1H[W(UDEHOLHYHVWKHEXUGHQDVVRFLDWHGZLWKUHZRUNLVXQQHFHVVDU\ZKLOHDZDLWLQJFODULW\LQWKH
ILQDOUXOHZLWKUHYLVLRQRIWKHDVVRFLDWHG5*V6HYHUDOH[DPSOHVRIZKHUHUHZRUNZLOOEHUHTXLUHG
DUH
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
R 5HYLVLRQVRIDVVRFLDWHGSURFHGXUHVSURFHVVHVMREDLGVWUDLQLQJPDWHULDOVDQGOHVVRQSODQV
WKDWDUHXVHGWRGHVFULEHDQGHODERUDWHRQUHSRUWLQJUHTXLUHPHQWV
R &RRUGLQDWLRQRIZRUNPDQDJHPHQWDQGUHVRXUFHVWRDOLJQZLWKVWDWLRQRXWDJHVFKHGXOH V
R 7KH UHWUDLQLQJ RI LPSDFWHG VWDWLRQ SHUVRQQHO ZLWK XSGDWHG LQIRUPDWLRQ FRQWDLQHG ZLWKLQ WKH
UHYLVHGJXLGDQFHGRFXPHQWVLQFOXGLQJ
6HFXULW\
5HJXODWRU\&RPSOLDQFH
(PHUJHQF\3UHSDUHGQHVV
5DGLDWLRQ3URWHFWLRQ
2SHUDWLRQV LQFOXGLQJ WKH $FFUHGLWHG 7UDLQLQJ 3URJUDP UHTXLUHPHQWV IRU WKH 6\VWHPDWLF
$SSURDFK WR 7UDLQLQJ 6$7 SURFHVV ([DPSOHV RI HOHPHQWV WKDW GULYH WKH QXPEHU RI
DYDLODEOHZHHNVWRWUDLQRSHUDWRUVZLWKLQD\HDUDUH
f 1H[W(UDH[HFXWHVF\FOHVSHU\HDU
f 1H[W(UDUHTXLUHVZHHNVIRUHDFKF\FOHRIWUDLQLQJEDVHGRQWKHQXPEHURIRSHUDWLQJ
FUHZVDQGOLFHQVHGRSHUDWRUVDW3RLQW%HDFK
f 1H[W(UDLVUHTXLUHGWRDGPLQLVWHUDQH[DPF\FOHIRUOLFHQVHGRSHUDWRUVHDFK\HDU
f 1H[W(UD LV UHTXLUHG WR LQFRUSRUDWH FHUWDLQ HOHPHQWV ZLWKLQ WKH \HDU WUDLQLQJ F\FOH
WKDWLQFOXGHRXWDJHDSSOLFDEOHREMHFWLYHV LQFOXGLQJEXWQRWOLPLWHGWRFRUHFKDQJHV
SODQWPRGLILFDWLRQVORZHUSODQW0RGHRSHUDWLRQV
-867,),&$7,21)25(;(037,21
%DVHGRQ15&¶VSURMHFWHGWLPHOLQHIRUFRPSOHWLRQRIUHYLVLRQWRWKHDSSOLFDEOH5*VDVVRFLDWHGZLWKWKH
ILQDOUXOHDQGWKHWLPHQHFHVVDU\IRU1H[W(UDWRXQGHUJRFKDQJHPDQDJHPHQWSURFHVVHVDGHTXDWHO\
WRLQFOXGHWKHQXPEHURIWUDLQLQJZHHNVWKDWZLOOEHUHTXLUHG1H[W(UDLVUHTXHVWLQJDFRPSOLDQFHGDWH
IRUWKHILQDOUXOHRI'HFHPEHURUGD\VDIWHUSXEOLFDWLRQRIILQDO5*ZKLFKHYHULVODWHU
$VVWDWHGDERYHGXULQJWKHSURSRVHGSHULRGRIH[HPSWLRQ1H[W(UDZLOOFRQWLQXHWRLPSOHPHQWWKH3RLQW
%HDFK6HFXULW\3ODQDVFXUUHQWO\GRFXPHQWHG6LQFH3RLQW%HDFKKDVEHHQOLFHQVHGE\WKH15&WKH
15&KDVGHHPHGWKDWWKH3RLQW%HDFK6HFXULW\3ODQSURYLGHVUHDVRQDEOHDVVXUDQFHRIVDIHW\DQG
VHFXULW\ 7KH GHOD\ LQ LPSOHPHQWDWLRQ RI WKH ILQDO UXOH ZLOO QRW LPSDFW SURSHU LPSOHPHQWDWLRQ RI WKH
FXUUHQW3RLQW%HDFK6HFXULW\3ODQDQGZLOOHQVXUHWKDWWKHILQDOUXOHLVHIIHFWLYHO\LPSOHPHQWHG7KXV
JUDQWLQJRIWKLVH[HPSWLRQZLOOQRWHQGDQJHUWKHOLIHRUSURSHUW\RUFRPPRQGHIHQVHDQGVHFXULW\
,PSOHPHQWDWLRQ RI WKH ILQDO UXOH ZLWKRXW IXUWKHU LQWHUIDFH FODULW\ DQG UHILQHG JXLGDQFH PD\ UHVXOW LQ
XQLQWHQGHGFRQVHTXHQFHVZKLFKFRXOGUHGXFHWKHHIIHFWLYHQHVVRIWKHFXUUHQW3RLQW%HDFK6HFXULW\
3ODQ 7KHUHIRUH LW LV LQ WKH SXEOLF¶V LQWHUHVW WKDW WKH 3RLQW %HDFK 6HFXULW\ 3ODQ DQG DVVRFLDWHG
SURFHGXUHVDQGSURFHVVHVFRPSUHKHQVLYHO\LPSOHPHQWWKHILQDOUXOHUHJXODWLRQVFRQVLVWHQWZLWKWKH
DSSOLFDEOHUHJXODWRU\JXLGDQFHRQFHUHVROXWLRQRILGHQWLILHGLVVXHVKDVEHHQDFKLHYHG
7KHJUDQWLQJRIWKLVH[HPSWLRQZRXOGQRWYLRODWHWKH$WRPLF(QHUJ\$FW $($ DVWKHFRPSOLDQFHGDWH
IRU WKH ILQDO UXOH LV QRW UHTXLUHG QRU VSHFLILHG LQ WKH $($ DV DPHQGHG DQ\ SURYLVLRQV RI WKH
&RPPLVVLRQ¶VUHJXODWLRQVRUDQ\RWKHUOHJDOO\ELQGLQJUHTXLUHPHQWVLPSRVHGE\WKH&RPPLVVLRQ
7KXVLVVXDQFHRIWKLVH[HPSWLRQUHTXHVWZRXOGEHFRQVLVWHQWZLWK&)5VLQFHLWLV³DXWKRUL]HG
E\ODZDQGZLOOQRWHQGDQJHUOLIHRUSURSHUW\RUWKHFRPPRQGHIHQVHDQGVHFXULW\DQG>LV@RWKHUZLVHLQ
WKHSXEOLFLQWHUHVW'
3RLQW%HDFK1XFOHDU3ODQW /
'RFNHW1RVDQG (QFORVXUH
3DJHRI
3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV
)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH
(19,5210(17$/&216,'(5$7,21
1H[W(UDKDVHYDOXDWHGWKHSURSRVHGH[HPSWLRQIRUHQYLURQPHQWDOFRQVLGHUDWLRQVDQGGHWHUPLQHGWKDW
WKH SURSRVHG H[HPSWLRQZRXOGFKDQJHD UHTXLUHPHQW ZLWK UHVSHFW WR LQVWDOODWLRQ RUXVH RI D IDFLOLW\
FRPSRQHQWORFDWHGZLWKLQWKHUHVWULFWHGDUHDDVGHILQHGLQ&)5RUZRXOGFKDQJHDQLQVSHFWLRQ
RU VXUYHLOODQFH UHTXLUHPHQW +RZHYHU WKH SURSRVHG H[HPSWLRQ GRHV QRW LQYROYH L D VLJQLILFDQW
KD]DUGVFRQVLGHUDWLRQ LL DVLJQLILFDQWFKDQJHLQWKHW\SHVRUVLJQLILFDQWLQFUHDVHLQWKHDPRXQWVRI
DQ\ HIIOXHQWV WKDW PD\ EH UHOHDVHG RIIVLWH RU LLL D VLJQLILFDQW LQFUHDVH LQ LQGLYLGXDO RU FXPXODWLYH
RFFXSDWLRQDOUDGLDWLRQH[SRVXUH$FFRUGLQJO\WKHHOLJLELOLW\FULWHULRQIRUFDWHJRULFDOH[FOXVLRQVHWIRUWK
LQ&)5 F LVPHWDQGSXUVXDQWWR&)5 E DQHQYLURQPHQWDOLPSDFWVWDWHPHQWRU
HQYLURQPHQWDODVVHVVPHQWLVQRWUHTXLUHGLQFRQQHFWLRQZLWKWKHSURSRVHGH[HPSWLRQ